El Paso herald. (El Paso, Tex.) 1901-1931, 1910-04-11

1hSOA14 tine ucCISiOn u the Onll0u
States circuit court was against the
tobacco men. it was against them on
the broad ground that there was
combination which interfered with
competition in trade and all such COM
binations were declared to be prohib-
tied by the Sherman law. The law
was conceded be drastic" and little,
doubt was left that it did not meet
the approval of that court
The governments proceeding was
against the American Tobacco company
and IS allied concerns and their Off
GERS. all Of them were charged with
forming and maintaining a trust The
suit was based on allega lions of viola
ton of the Sherman antitrust law and
also of some of the provisions of the
Wilson German tariff law. The pur-
pose of the government was to force
the dissolution of the combination and
the destruction OF what was declared
to be a monopoly of the tobacco bust
ness in restraint OF commerce. not only
in the United States. but throughout
large paFty'of the tobacco using world
FOur Judges Listen.
Four judges sat in the hearing of
the case in the trial court. and while
three of them ultimately found COM
mon ground for a verdict. they were
so divided in their respective lines of
reasoning that each propounded an
opinion OF his own.
In general terms the verdict was "a
declaration Of guilt for a majority OF
the corporations on the ground that
they constituted a combination con-
trary 20 the law. and while an injunc-
ton against these combinations was
granted there was no pronouncement !
on the subject of monopoly. which the |
government has especially sought 10 |
obtain
The bill as TO the United Sigar Stores |
company. a domestic corporation, was |
dismissed, as were also the bills against !
the Imperial and British American !
companies. English corporations, and !
their subordinate American concerns.
Notwithstanding the contention by the
government that the Cigar Stores COM
pany was the retail instrument of the
trust In this country and the English
companies the foreign divisions of it.
Cigar Stores Escape
The dismissal in the case of the Cigar
Stores company was due to a failure
on the part of the circuit court to find
that there had been any exercise of
control over it by the trust restricting
the freedom of trade, and in the cause
Of the two foreign corporations to the
circumstance that the contract for the
distribution of foreign business was
made in England
Designating the plea of the govern
ment on the point of monopoly. the cir
cult, court adjudged the American To-
and many of the su
coordinate general companies to be mar
ties to an unlawful combination; 70
be each in itself an unlawful combina-
tion. and each 10 be holder of shares
IN other companies. They were en-
Joined generally from continuing in
the combination or from doing any,
thing in furtherance of It: from on
gaglng In Interstate and foreign COM
merce, and from acquiring the plants
or business or exercising control over
issuing companies. The issuing COM
panles also were enjoined against per-
hitting such control. The bills against
the officials of the various companies I
VINO were included in the original COM !
plant were dismissed.
Appeal Taken
Both the government and the tobaooo :
companies appealed the case to the {
supreme court-the former because of i
the failure to include all the defend i
ants In the prohibition and also be- !
;ause OF the limited scope of the YER
ilct as TO the others. and the compan-
es, on the general ground that there :
should have been no verdict at all
against them.
The Argument. :
lhe argument of the case in the su ,
'reme court consumed three times as r
nuch time as is ordinarily allowed for s
ne presentation of cases The govern 8
nent, which was represented in the Y
rearing by attorney general Wicker Il
;ham and special assistant attorney p
general MeReynolds. made the most S
weeping charges concerning the COM
tina ton {
Ihey sought especially to have the
tempted organizations included in the
rohfbitien. declaring that the Imperja1 !
ompany and the British American COM ! {
any mad been so manipulated as 70 | :
rovlde for complete monopoly and di
iSlons of the tobacco business of the "
Torld- An effort also was made To
ave the verdict of the lower court :
D extended as to have the entire com >
ination declared a monopoly in re- +
traint Of trade. On behalf of the i