The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1911-12-05
PRESIDENTS MESSAGE

4
both preferred and common, has been
taken from the defendant American
| Tobacco company and has been dis
trlkuted among its Stockholders. All
covenants. restricting competition have
! been declared null and further per
The preferred stock OF the Different
companies has now been given voting
| power which was denied Ii under the
old organization The ratio OF the pre-.
| felTed stock to the common was as ~
to 40, This constitutes very decided
change in the character of the owner
ship and control OF each company
In the original suit there were TWEEN.
ty-nine defendants, who were charged
with being the conspirators through
whom the Illegal combination acquired
and exercised its unlawful dominion
Under the decree these defendants will
hold amounts OF stock In the various
distributee companies ranging from Al
per cent as maximum 10 2Sia pei
cent as minimum, except In the case
OF one small company. the Porto Rican
Tobacco company, In which they viii
hold AZ per cent The twenty-nine In
dividual defendants are enjoined for
three years from buying any stock tx
cept from each other, and the group Is
thus prevented from extending its con
trol during thar period All parties TO
the suit and the new companies who
are made parties are enjoined perpet
nally from In any way effecting any
combination between any OF the com
panies In violation Of the statute by
way Of resumption OF the Old trust
Each OF the fourteen companies Is en
Joined from acquiring stock in any OF
the others. All these companies are
en1oined from having common direc
tors or officers, or common buying or
selling agents, or common Offices, OF
lending money to each other
Size of New Companies
Objection was made by certain in
dependent tobacco companies that this
settlement was unjust because It left
companies with very large capital 10
active business and that the settle.
meut that would be effective to put ali
on all equality would be division OF
the capital and plant of the trust into
small fractions In amount more near
ly equal to that OF each of the lnde
pendent companies. This contention
results from misunderstanding OF
the antitrust law aud IFS purpose II
is not intended thereby to prevent the
accumulation Of large capital In bust
ness enterprises In which such com.
bination can secure reduced cost OF
sale and distribution 1t
s directed against such an aggrega.
ton of capital only when its purpose |
Is that OF sitting competition, enhanc- |
ng or controlling prices and establish
ng monopoly. Ii we shall have by |
he decree defeated these purposes |
md restored competition between the |
arge units into which the ca pitai and |
)lant have been divided we shah have !
accomplished the useful purpose OF
he statute
,onfiscation Not the Purpose Of tn.
statute.
1t is not the purpose Of the statute
o confiscate the property and capital
II the offending trusts Methods Of
by fine or Imprisonment
# the individual offenders, by nne Of
he corporation or by forfeiture Of it,
goods in transportation are proylG
'ut the proceeding in equity is spe
lfc remedy to stop The operation of
he trust by Injunction ana prevent
he future use of the plant and capnal
u violation Of the statute
Effectiveness Of Decree.
! venture to say thai not IN the his
ory Of American law has a decree
aore effective for such a purpose been
niered by court than that against
he tobacco trust AS Circuit Judge
'oyes said il bis Judgment approving
he decree
''The extent 10 which it has been
ecessary to tear apart this comblna-
lon and force It into new forms with
le attendant burdens ought to demon
-rate that the federal antitrust statute
"A drastic statute which accomplishes
fective results. which so long as II
lands on the statute books must be
beyed and which cannot be disobey
/ without incurring farreachlng pen
tiles And, on the other hand, the
lccessful reconstruction OF this or
should teach that the effect
enforcing this statute is not 20 dc
roy. but to reconstruct: not 10 de-.
olish. but to recreate IN accordance
it'll the conditions which The congress
as declared shall exist among the
'ople Of he United States"
Common Stock Ownership.
II has been assumed that the pres
{ pro rata aud common ownership In
these companies 10y former stock
iders pf the tr',st would insure a
ntinuance Of the ssme old single con :
d of al the companies into which :,
e trust has by decree been dsnte- !,
ated This is erroneous and is based :
on the assumed nefilcacy and innoc- =,
usness VI jUdirial iniunctions The
are enfaiacd from eo-opera
% or coinbiua.ion, they have differ
{ managers. directors. purchasing
4 sales agents II all or many Of :
. numerous stockholders reaching
% the housauGs artcmpr 70 secure ]
leerted action - The companies with
view 80 the control Of The marke, y
FIR numtor Is 80 large that sven an