The Cairo bulletin., 1910-02-24
TRUST QUESTION
IN TWO CASES
STANDARD oil AND TcHAcco
, co. DECISIONS TO CONE At
SAME TIME
ARGUMENT OF FORMER
Is Set For March f4.-Hoth concerns
\ Attacked a. Holding Com
panies, Restraining Trade,
Vet Cases Differ.

A Washington, Feb. 23.-Whiie TIN
I, Supreme court Of the United Statea
has vouchsafea no intimation On the
subject, II II generally supposed here
that the decision In the case pf the
American Tobacco Company, which
Ihas already been argued before the
court, viii not be handed down at
lleast until after the argument Il, the
case Of the Standard OIL Gomnany.
(which is set for March 14.
i Attorney General Wisaersham, IN
his motion to advance the hearing of
1.-THE latter case. described the two as
Essentially kindred. and suggested to
1.-THE court that they be considered i J.
i gether
i Lawyers here geenrally concur In
the statement made by Mr.. wicker
lsham TO the durt. that these two
leases together present for its consid-
Grafton practically the entire range
Iof modern Industrial organizations in
\ this country" and substantially every
feature OF the "trf5.. question" so far
as 1t falls within the prryfew OF re
4 Sherman antitrust law. Yet they are
mot precisely alike; indeed. II IL said
THAT id some particulars they are SO
dissimiiar that the corrt might find
lin favor OF the government In one
lcase, and against II in the other.
II The two cases are alike In that
,lthey are proceedings IN equity to en-.
.lioin alleged violations Of the law ot
Ithe land neither ID In its essence
N -lcrirninai action: in neither does
1.-THE government seek to procure
-Ieither Imprisonment of individuals or
! exemplary fines upon the az snts.
Tin both suits charges psfvs VI u
} lthose alleging unlawful 1c0 passion
| and conspiracy in restraint ous inter-
/ state trade and commerce, and con-
4 tinuing monopoly or attempted mo
nopoly, of important elements In in
! Iterstate commerce.
The Standard Oil Company Of New
Jersey is attacked as holding com
lpany." Out of its slo0o00.0o0 cap
HI ta stock, over s97,00O,O00 was ex-
lchanged in 1899, according to the
government fii~ res. FOR stock In nine
teen other corporations. engaged in
the various branches of the petro-
leum business.
Il The American Tobacco Company is
, alleged to be both a holding and an
operating company. II is actively
z engaged in the tobacco business.
owns its own shops aud sells the
n manufactured products In the case
OF the Standard Oil, Company, the raw
lproduct is to an extent produced by
the corporation; in that of the to-
, bacco combination the raw material
}, Iis purchased.
n While the Sherman law does not
specifically prohibit the organization
of holding companies, the supreme
court declared in the Northern Sc.
curities case that he holding com
L pany constituted an organization in
!, restraint OF trade and commerce
The government charges that from
; the time OF The organization Of the
N Standard Oil Company In 1899. mo-
Inopoly was obtained; that Id fact Tor
years prior to that d virtual inionop-
oily had existed, aud that the various
forms which the conspiracy alleged
against the oil company has taken.
have been merely adaptations to the
changing needs and conditions OF the
"A times
In the Tobacco case, III is allege,f
that originally when the merger was
consummated In 1890, there was a
monopoly only in the cigarette trade:
the defendants claim that the control
Of the business then secured has
: since materially dwinJled.
4 The Standard Oils counsel have
contended that the corporations whiel,
| in 1899 entered into the agreements
complained of had Tong since ceased
to be competitors, In the Tobacco
case, the defendants contend that
their acts have been confined mere-
: Iy to the acquisition OF manufacturing
property; that manufacturing cor
porations are under no legal obliga-
ton to compete-the prohibition be-
ling against specific, agreements to
suppress competition; non-competi.
: tion as the result OF the acquisition
OF property is, the defendants insist.
! not violation of the statute.
= Another difference between the
two cases lies in the fact that the
\ STANDARD OH Company Is charged
\ with ofense against the Sherman
!. law alone, the Tobacco corporations
= are charged vita offending also the
: Wilson tariff act II 1894. which ex-
= tended the application of the ANTI
TRUST law 10 any conspiracy 10 re-
straiut Vt trade, one party to which
lwas an importer. furthermore, tho
-.uAf. ".