Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-10-25
SAY It IS DEFECTIVE
Objections to Tobacco Trust
Reorganization Plan.
VOICE OF INDEPENDENTS
Allege That Scheme Proposed Will
Not Restore the Desired Com
petitive Conditions.

NEW YORK, October 25.-Formal OBJ
jections to the proposed plan of reorgani-
cation of the American Tobacco Company
were filed today with the United States
Circuit Court by counsel for the three
associations of so-called Independent to-
bacco manufacturers and producers. The
objections embody, in a brief, previous
statements to the effect that the plan
will not restore competitive conditions in
the tobacco industry. because ownership
of many of the new companies is prac-
tically Identical
Group Of Alleged Defects.
The fundamental defects" of the pro-
posed plan are grouped under four head
ings:
First. That no plan will restore compe-
tition which does not provide that the
separate segments of the trust shall be
owned by absolutely distinct groups Of
individuals
Second. That under the proposed plan
competition would be legally possible but
because OF the common ownership Of
petition
Third-That in view of the past affilia-
tons of these stockholders no reason
able assurance of competition can be had
0HieSS edcH segment Is owned py group
of individuals having no interest in any
other segment of the trust.
Fourth-That the framing of a plan for
dividing the stock of the new companies
among different groups of stockholders
would present no serious difficulties, mas
| much as the partition could be made in a
manner similar to that pursued in divid-
ing an estate among heirs. where each
heir receives a particular parcel of real
| estate formerly held in common.
Courts Instructions.
The brief was filed in accordance with
! instructions from the circuit court order
ing memoranda of objections to be filed
In advance of the public hearing to be
held next Monday. Louis D. Brandeis of
Boston presented the papers to the court,
| being In Washington. where. it was said,
he probably would confer today with At
torney General Wickersham.
Signatories to the brief are the Ma
t tionai Leaf Tobacco Association, the
other independents. The brief was out
lined by Mr. Levy at his recent confer
ence here with the attorneys general Of
the Carolinas and Virginia.
Commands Attorney Generals Time.
Attorney General wickersham is giving
pT0CtICaIly Ill ms CimC InlS week TO con-
sideration Of the plan of reorganization
OF the tobacco trust, which the Supreme
Court compelled to change it's form. Mr..
Wickersham is holding conferences with
]. b. McReynolds, the special attorney
who conducted the fight against the to-
| bacco trust: with Felix III. Levy of New
| York. who represents the independent to-
| bacco manufacturers. and John w.
Yerkes. representing the independent to-
bacco growers. Mr.. Levy has been here
several days.
The attitude Of the Department of JUS
| tice and the administration to the reor-
ganixatfOn plan, which Is hotly opposed
by Independent tobacco manufacturers
and growers, will not be made known,
| 1t Ia stated, until Mr.. Wickersham goes
into court next Monday to present the
government side. 1t is expected that
big legal battle will take place at that
time.
Differences Alleged.
There have been many current rumors
that Mr.. Wickersham and Mr. McReyn-
olds are seriously at odds over the plan.
Mr.. Wickersham is said to hold that the
plan IL satisfactory and Mr.. McReynolds
opposes 1t as in no way coming within
the law as laid down by the Supreme
Court. II there is any truth in the re-
ports there is no Official confirmation
from any direction.