The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-10-30
Attorney General Wicksrsham
Files Governments Answer
To the Dissolution Plan of the
American Tobacco Co.
RESERVES THE RIGHT
To Apply to the Court ANY Time
Within Five Years
For Further Action That May
Appear to Be Necessary.

new OTk, OcL. 0U."HTOCeeUluSS
here today before the United States
court in the case of the American To-
bacco company and its subsidiary con-
Germs mark another new and important
step in the government struggle with
the trust problem. Today the federal
court hears the views of the federal
department of justice, the attorneys
general of four states and of practical
ly all the so-called independent" to-
bacco manufacturers and dealers on
the plan of reorganization proposed by
the American Tobacco company and
its co-defendants after the supreme
court had declared them an illegal
monopoly. Before it can be put into
effect any such plan must be sane
toned by the federal court
The tobacco corporations tentative
proposition calls for dividing the en-
terprises under its control into four
separate companies. Objections to this
plan, already filed by the independents,
declare that it does not carry out the
intent of the supreme courts decision,
which is the prevention of monopoly
and restraint of trade. Through mu-
tuality of stock ownership, they con-
tend, a unity of interest would be
maintained which would stifle compe-
tition.
Attorney General Wickersham is
here today to file the government an
swer. He is assisted by J. o. Nc
Reynolds, special assistant to the at
torney general and senior counsel in
the trial of the case, and Edwin P.
torney general and junior counsel at
the trial.
For the defendant companies ap-
pear Lewis Cass Ledyard, De Lancey
Nicoll. w. w. Fuller and Junius Park
er. Other represented at the hearing,
which will continue several days, in
clude the United Cigar Stores COM
pany, by Solomon NJ. Stroock the I'M
perial Tobacco company. by William
B. HornbloWer; the r. P. Richardson
the trust and will withdraw from the
proceedings, by Charles r. Caruth;
bondholders and preferred stockhold-
ers of the American Tobacco company,
by Joseph H. Choate and Adrian P.
Larkin; Independent manufacturers, by
John Yerkes; the National Cigar Leaf
Tobacco association, by Louis D. Bran
dey and Felix H. Levy; the state of
Virginia, by Attorney General Will
liams; North Carolina. by Attorney
Attorney General Lyon; New York, by
Attorney General CarrNody.
The proceedings are before Circuit
Court Judges Laeomb, Coke, Ward and
Noyes.
Understands Answer.
Inc attorney general, aIL6r referring
to the directions of the supreme court
to restore competitive conditions, says:
"Obviously, the effect of any plan
of d1Sintegration submitted to the
court must be more or less a matter
of conjecture and it is impossible for
the court to determine in advance
whether plan which proposes to re-
store competitive conditions will actu-
ally accomplish the purpose intended.
ANY decree ascertaining and de-
termining upon plan should. there
fore, reserve to the government the
right, at any time within five years
from date Of entry, to apply to the
court for other or further relief from
a showing that, as a matter of fact,
such plan has not resulted in creating
a new condition which shall be hon
estly in harmony with the law. To
that end, as well as for the other pur-
pose hereinafter expressed, each and
every one of the new corporations pro-
posed to be organized for the purpose
of carrying out the plan should be
brought in as a party to this suit in
order to be subjected to the jurisdic-
ton of the court and bound by its
decree"
The attorney general asks that what
ever plan be adopted it be subject to
the following conditions:
The Conditions Asked.
The corporations among which the
properties and businesses in the conbi-
nation are to be distributed for period
of five years shall not have any Off
GERS or directors in common.
These companies shall not have any
stock interest in each other.
They shall not employ the same
agencies for the purchase of leaf to-
bacco or other raw material, or for
the sale of tobacco or other products.
They shall not retain or employ the
same clerical or other organization or
occupy the same office or Offices.
No one of them shall hold capital
stock in any other corporation, any
part of whose stock is also held by
any of the other corporations among
which the properties Of the combina-
tion are distributed.
ITO the end that the % individual
defendants in this suit. the attorney
general continues, shall not increase
their control over any of the corpora
tions among which the properties and
businesses now in the combination arr
to lie distributed, pursuant to the plan;
that such defendants De severally en-
Joined from, at any time within FIVE
years from the date of the decree, ac-
qufring, directly or indirectly, the legal
or equitable ownership of any amount
of stock in any one of said CORPORA
they would respectively hold if and
when the plan shall have been carried
out rs proposed
The further suggestions of the gov
ernment included the following:
That in the distribution OF the pro-
perties and businesses now held in The
nnbination pursuant to the plan of
disintegration, the corporation shall not
be allowed to acquire property, tangible
or intangible, which would invest il
with as much as 40 per cent in volume
<f~o,,+fr,,a.7 ~, pace Eight