The Washington herald., 1907-07-09

A bill In equity viii be fled by the
government tomorrow, in the United
States Circuit Court for the Southern
district OF New York, against the Ameri-
can Tobacco Company. charging the cor
poration with being a monopoly in re-
straint OF trade, in violation of the Sher-
man law.
That this action will be taken causes
no surprise. for It has been known for
some time that the so-called tobacco
trust was under investigation. but the
nature Of the prayers to the court in this
case will mean startling departure in
antitrust prosecutions. more radical than
anything yet undertaken by the Roosevelt
administration.
4 new policy has been adopted by the
President and the officers Of the Depart
ment Of Justice. which aims ct nothing
less than placing every mOnopolistie or
law-breaking trust in the hands Of re-
ceiver, who. as the agent Of the Federal
court, shall carry on the business Of the
corporation.
This proceeding. which is the latest OF
the Roosevelt policies relating to the con-
troll of corporations. is 10 have a trying
out in the prosecution of the tobacco
company, and If the movement succeeds
other eapitalistic combinations which
may be violating the laws may expect to
receive similar treatment
May Take over OH Trust.
1t is easily among the possibilities. as
'viewed by the officers Of the Department
Of Justice, that even the gigantic busi-
ness OF the Standard Oil Company may
eventually be taken from the hands or
its present officers and directors and
placed IN charge of a receiver If the
movement against the tobacco corpora.
ton should prove successful.
The receivership plan has been very
thoroughly worked out by the lawyers of
the Department OF Justice, among whom
is Milton D. Purdy, assistant TO the At
torney General, who is believed to be the
originator of this novel method Of dealing
with the trusts. An inseparabIe accompa-
nimeut Of the plCZs ar least IN the first
trial, which is about to be inaugurated. is
a petition for injunction. The court viii
be asked to grant an injunction restrain
ing the alleged monOpolistic corporation
from engaging further In interstate com
merce. and the government prosecutors
viii petition, as an alternative, that the
court appoint a receiver TO carry on the
business Of the offending corporation.
Whatever the Federal courts may think
Of this new plan of campaign in the ad-
ministration's war on corporations. ths
leading officers of the Departments of
Justice and Commerce regard it with con-
fdence. and believe It TO be thoroughly
sound in war.
Previous Suits InnOcuOus,
The receivership plan owes its origin. in
part at least, TO the obvious fact that
most of the, suits thus far successfully
prosecuted by the government have had
little practical effect. The administration
believes, for example, that the first great
suit instituted by the government, namely
the one against the Northern Securities
Company. had no tangible result in caus-
ing the railroads which formed the mer-
ger 10 become competing lines. ANY law
yer in the Department Of Justice will
admit, If he says what he thinks, that the
great combinations OF capital are so
and are so essentially subject to the viii
OF the men who own the property, that it
IS impossible for any power to compel
them. in all cases, TO dissolve themselves
into competing companies and TO allow
the small producer or carrier the same
advantages that they enjoy themselves.
The receivership plan is regarded by the
administration as a method of giving TO
the prosecution of trusts practical effect,
According to this plan. the government
virtually says 10 the corporations:
You are breaking the law but il is
difficult for US to make you carry on
your business in such a way as to con-
form to the law. So we will ask the
court to appoint a receiver to carry on
your business for you, in your interest
and in the interest of the people"
Would Mean End of Trusts.
According to the project for a receiver
ship, the agent Of the court would be ex-
pected 10 conduct the business Of the
corporation IN conformity with the sher-
man law and the other more recently en-
acted statutes for the regulation of trusts.
The receiver would, in short, be expected
in the course Of time TO bring about a
thorough dissolution Of the trust, and
possibly TO restore its various units to
the condition in which they existed prior
20 the combination "in restraint OF
trade"