The Caucasian. (Clinton, N.C.) 188?-1913, 1911-11-02
1RlIsfDANOcoNDfmNfD
,,., Of Reoreanization OF the
rob,cco Trust Being Con-
.;dered by the Court

~ =
Answer and Makes Several
Vaccinations TO the Court
...a,nevs Of Independent Compa-
object To Plan Of Reorganiza-
49, York. oct. 30.-The proposed
tor the reorganization of the
80 rust submitted by the Amer
Tobacco Company and code
~4.o,s 20 the governments anti
-, anti vas both praised and con-
nod today before the Circuit
81 Judges OF the United States for
=. southern district OF New York.
.rer Attorney General Wickers-
IN had filed the governments an
ar 70 the plan, counsel for the de-
..,dants pleaded with the court TO
..nent the dissolution proposal. Lew
!. cass Ledyard, arguing for the de-
..sdants. insisted that 1t was an
Inpest plan to comply with the re-
,grements in the mandate OF the
cr,reme Court for a reorganization
hat will restore competition in COM
,IIauce with the terms OF the Sher-
man antitrust law.
supporting the plan, representa-
,iyes OF the preferred stockholders
and bondholders OF the American
TobaccO and constituent companies
urged approval of the division Of the
trust into four principal segregated
companies to be operated absolutely
ipdependent Of each other. In sup
mort OF these interests there appeared
Joseph II. Choate and others, who in
sisted that the reorganization plan
was a sincere one, and pleaded that
no hostile elements be permitted to
destroy it though it might be subject
10 some amendment calculated to as
sure protection to the property rights
Of citizens.
Independents and Growers Object to
Plan.
Independent manufacturers, deal
ers and producers of tobacco unani-
mously disapproved the plan on the
ground that it would not result in
efectually breaking up the trust
and that it is a sham proposal to di-
vide the properties, control of which
still would be retained by the group
Of individuals now dominating the
industry. Louis d. Brandeis, of Bos-
ton, made the principal argument
against the proposal and sought to
convince the court that it would be
impossible to bring about thereby a
restoration of the competitive system
in the trade.
Attorney General Files Answer.
Attorney General Wickersham, ap-
pearing with the special prosecuting
attorneys J. C. McReynolds and Ed
win P. Grosvenor, will be heard to-
morrow. The answer of the Attor-
ney General filed today did not ex-
press general opposition to the dis
solution plan but contained for the
guidance of the court many restric-
tons deemed necessary to assure res
toration of competition in the tobac-
co industry.
Creation of a new condition, hon
estly in harmony with and not re-
pugnant to the law" is insisted upon
BY Attorney General Wickersham in
his answer to the plan Of dissolution
and reorganization of the American
Tobacco Company, and defendants tc
the governments antitrust suit.
The answer urged that any disin'
tegration plan accepted be subject tc
revision within five years and asked
the court to grant permanent in
junction against each of the defend
ants, their officers, employees, etc.
restraining them from continuing OF
carrying into further effect the com
bination adjudged illegal by the Su
preme Court"
After referring to the directions o.
the Supreme Court that competitive
conditions in the tobacco industry bs
restored, the Attorney General said
Obviously the effect of any plan O
dlsintegration submitted to the con
sideration of the court must be more
or less a matter of conjecture, ant
1t is impossible for the court to de
termine in advance whether or not ;
plan which proposes to restore com
petitive conditions will actually &C
complish the purpose intended"
Want Right to Apply for Furthel
Relief.
Therefore, he contended, the gov
eminent should be given the right tt
apply for further relief at any tim,
within five years and to that enc
any of the new corporations proposed
10 be organized to carry out the plal
should be brought in and made /:
party to this suit in order to be sub
!ected to the jurisdiction of tn,
court.