The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1911-12-05

'Aai Aht ONAltl Vi SfVU,OOO. ut
one snuf company is divided into
three companies. one with a capital
of sl5.000,000; another with a cap
ital of SS.00O000; and third with a
capital of $S.000000. The licorce
companies are two. one with a cap
ital of $5,75S,00 and another with a
capital of s2000,000 There is. also,
the British-American Tobacco com
pany. a British corporation. doing
business abroad with a capital Of
$26,OOO.000, the Porto Rican Tobac-
co company with capital OF
$l,SOO,OO0, and the corporation of
United Cigar Stores, with capital
or $9,OO0000. Under this arrange
ment each of the different kinds of
business will be distributed between
TWO or more companies. with d.
vision OF the prominent brands in the
same tobacco products. so as to make
competition not only possible but
necessary. Thus the smoking tobac-
co business of the country is divided
so that the present independent com
panies have 2l39 per cent, while the
American Tobacco company will have
33.0S per cent. the Liggett and
Meyers 20.05 per cent, the Lorillard
company 22.82 per cent, and the
Reynolds company 2.66 per cent. The
stock OF the other thirteen companies,
Doth preferred and common, has been
taken from the defendant American
IoDacco company and has been dis
trlbuted among its stockholders. All
covenants restricting competition have
been declared null and further per
romance of them has been enjoined.
me preferred stock OF the different
companies has now been given vot-
ing power which was denied 1t under
the Old organization. The ratio OF
the preferred stock to the common
W@s as IS to 40 This constitutes
:2ry decided change in the character
or the ownership and control Of
each company.
In the original suit .here were TWEEN.
ty.nine defendants who were charged
with being the consplrators through
whom the Illegal combination acquired
and exercised its unlawful dominion.
Under the decree these defendants
will hold amounts of stock In the va
rious diStributee companies ranging
from ~ per cent. as a maximum to
2Sk per cent as a minimum, except
In the case of one small company, the
Porto Rican Tobacco company, in
which they will hold 45 per cent. The
twenty-nine individual defendants are
enjoined for three years from buying
any stock except from each other.
and the group Is thus prevented from
extending its control during that pc
riod. All parties TO the suit. and the
new companies who are made parties.
are enjoined perpetually from in any
way effecting any combination be-
tween any of the companies In viola
tion Of the statute by way Of resump-
ton OF the old trust. Each Of the
fourteen companies is enjoined from
acquiring stock In any Of the others.
All these companies are enjoined from
having common directors or officers.
or common buying or selling agents.
or common offices. or lending money
to each other.
Size of New Companies.
Objection was made by certain In.
dependent tobacco companies that this
settlement was unjust because 1t left
companies with very large capital in
active business. and that the settle
ment that would be effective to put all
on an equality would be a division of
the capital and plant of the trust into
small factions in amount more nearly
equal to that of each of the independ
ent companies. This contention re-
suits from a misunderstanding Of the
antitrust law and its purpose. 1t Is
not intended thereby to prevent the
accumulation Of large capital In bust
ness enterprises in which such a COM
bipation can secure reduced cost Of
production, sale and distribution. II
Is directed against such an aggrega-
ten OF capital only when It's purpose
Is tnat OF StllllUS COmpelltlOn, eunduC-
ing or controlling prices and estab-
fishing a monopoly. II we shall have
by the decree defeated these purposes
and restored competition between the
large units into which the capital and |
plant have been divided, We shall have
the useful purpose Of |,
the statute.
C confiscatior Not the Purpose Of the !
Statute.
Il is not the purpose OF the statute J
to conhscate the property and capital /
Of the offending trusts. Methods of !
by fine or Imprisonment |
n the Individual offenders, by fine of |
The corporation, or by forfeiture of its |
goods in transportation, are provided. !
but the proceeding in equity is a spe-
,inc remedy to stop the operation of
he trust by injunction and prevent
he future use of the plant and capital
n violation of the statute.
Effectiveness Of Decree.
venture to say that not in the his