The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-02-24
BIC TRUST CASES
VERY MUCH ALIKE
Attorney General Likens Stan
dard Oil and Tobacco Cases
FALL UNDER SAME LAW
FALL UNDER SAME Law
Lawyers Generally Concur In Wicker
sham.s Statement That the Two
Cases Cover Entire Range of
Industrial Organizations

Plt1lt tOu1l VI tilt Olittu otobCp iiehS
vouchsafed no intimation on the subject
1t is generally supposed here that The
decision In the case of the American To-
bacco company, which has already been
argued before the court, will not be
handed down att least until after the
argument in the Ease of the Standard Oil
company. which Aset for March a.
Attorney GenefaN Wickersham in his
motion to adssp nee lie hearing of the lat
Ter case. desetibed the two as essential
ly kindred, 9nd suggested to the court
that they be lconsideFsd together.
Lawyers here generally concur in the
statement made by Mr. wiclSersham TO
the court, that these two cases together
present for its consideration practical
ly the entire range of modern industrial
organizations in this country and sub
stantially every feature of the trust
question:" so far as it falls within the
purview of the Sherman antitrust law.
Yet they are not precisely alike; indeed,
it is said that in some particulars they
are so dissimilar that the court might
find in favor of the government in one
case, and against it in the other
Two Cases Are Alike
The two cases are alike in that thu
are proceedings in equity to enjoin alleged
violations of the law of the land-neithe.-
is In its essence a criminal action; in
neither does the government seek to pro-
cure either Imprisonment of individuals
or exemplary fines upon the defendants.
In both suits the charges pressed are
those of alleging unlawful combination
and conspiracy in restraint of interstate
trade and commerce. and continuing
monopoly OF attempted monopoly, of i'm
portant elemnts In interstate commerce.
The Standard Oil company of New Jer-
sey Is attacked as holding company"
Out of its s100000,000 capital stock, over
$97, 100000 was exchanged in 1899. accord
ing to the government figures, for stock
in 10 other corporations, engaged in the
various branches of the petroleum bust
ness
The American Tobacco company is al
legged to be both a holding and an operat-
ing company. 1t is actively engaged in
the tobacco business, owns its own shops
and sells the manufactured products. In
the case of the Standard OIL company, the
raw product Is to an extent produced by
the corporation; in that of the tobacco
chased
Against Holding Companies
While the Sherman law does not speci~
fically prohibit the organization of hold
Ing companies, the supreme court de-
clared In the Northern Securities case that
the holding company constituted an or
ganization in restraint of trade and COM
merce.
The government charges that from the
time of the organization of the Standard
OIL company In 1899 a monopoly was OBJ
tanned; that in fact for years prior to
that virtual monopoly had existed and
that the various forms which the con-
Epiracy alleged against the oil company
has taken, have been merely adaptations
to the changing needs and conditions of
the times.
In the Tobacco case, 1t is alleged that
originally when the merger was consum-
mated in 1890. there was monopoly only
in the cigarette trade; the defendants
claim that the control of the business
then secured has since materially dwin-
died.
Competitors Are Dead
The Standard OILS counsel have con-
tended that the corporations which in
1899 entered Into the agreements COM
planned Of had long since ceased to be
competitors. In the Tobacco case the
defendants contend that their acts have
been confined merely to the acquisition of
manufacturing property; that manufac-
turing corporations are under no legal
obligation to compete-the prohibition be-
ing against specific agreements to sup
press competition; non-competition as the
result of the acquisition of property is,
the defendants insist, not a violation of
the statute.
Another difference between the two
cases lies in the fact that the Standard
on company is charged with offense
against the Sherman law alone; the To-
bacco corporations are charged with Of
Tending also the Wilson tariff act of 1894
which extended the application of the
antitrust law to any conspiracy in re-
straint of trade, one party to which was
an importer Furthermore, the govern
ment is seeking to establish the rule that
a corporation entering into an agree
ment abroad which in purpose conflicts
witt. American law. gains no immunity
from the fact that such an agreement is
lawful in the foreign country.
Necessaries Of Life
! 1t is suggested that the commodities
handled by the Standard OIL company
may be more properly called ''Necessaries
of Life than those dealt In by the to-
bacco corporations.
| Attorney General Wickersham in his
argument of the Tobacco case expressed
the opinion that different element would
enter into the trade In an absolute ne
'osssity Of life, a. distinguished from