The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1910-01-03
SUBSCRIBERS PAPERS
MONDAY. JANUARY .. 1910.
the WAY OUT.

We have had legislation enough TO
control combinations. such as II has
been. In all the repeated efforts to
regulate the trusts. there have de-
veloped flaws. usually based upon
questions of constitutionality. There Is
no Question of the sincerity of pur-
pose OF those who are seeking just
means of regulating these combina-
tons; what Is needed Is an authorita-
tive suggestion as to how II can be
done. When the supreme court Of the
United States convenes today. after Its
holiday recess. the first case It will
have to consider Is the suit OF the gov
eminent to dissolve the so-called to-
bacco trust. in which circuit court
has held the trust to be illegal. II Is
expected that the finding of the
supreme court in this case viii furnish
the key TO trust regulation.
On account of the important indus
trial and legal questions and the vast
financial interests it involves. the suit
against the tobacco trust Is regarded
as second in Importance only to the
similar action instituted by the gov
eminent against the Standard Oil
company.
The American Tobacco company Is
the defendant In the suit The action
is one In equity brought under the
provisions OF the Sherman anti trust
laws. The control through the parent
company OF numerous corporations
engaged In the tobacco business Is
characterized as a conspiracy In re-
straint Of trade. The government asks
for a permanent injunction restrain
ing the holding control of its subsidiary
company corporations and from re-
organizing in such a manner that the
alleged conspiracy be perpetuated.
The American Tobacco company
was organized in 1889 by the con-
solidation of the firms of Washington
Duke and Sons. Allen & Ginter. the
Kinney Tobacco company. Goodwin &
company and w. S. kimball & COM
pany. The company was capitalized
at S:5.000.000. Since then il has ex-
tended its operations all over the
country. until. according to the papers
In the suit begun by the federal gov
eminent. 1t has absorbed sixty-five
corporations.
In dealing with the cases of the
Standard Oil company and the tobacco
trust the supreme court OF the United
States will, II Is hoped. give the last
word on the subject of combinations
of industries in restraint of trade and
clear the way for such remedial iegis-
lation as may be needed. At the same
time ii is hoped that the court may
point out the limitations eircumscribing
the law-making branch of the gov
eminent upon this subject.
1t is said both in administrative
and legislative circles and rociferously
SNhoSu AZ pusiitss tndt tHeIS
is crying need OF authoritative out
lining Of the power of congress to
limit the operations of great business
combinations necessitated by modern
conditions. II is necessary, IL is
claimed. that the constitutional powers
be plainly stated. so that business
combinations can go as far as possible
under the law aud that congress be
restrained from going beyond its
powers in limitation thereof
1t Is contended that the questions t.
be decided by the supreme court in
the tobacco and Standard Oil cases
cover most of the contingencies threat
ening existing and proposed combina
tions. and that everybody. including
the prosecuting branch OF the govern.
ment. win be glad TO have them eluci.
dated and the way made clear one,
for all.