The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-10
G en-. TONNES suggests
Settlement by Com
mission.
PROPOSED PLAN
WOULD NOT HELP
Former Consul General in Rich
mond Interview Says Country
Demands Restoration of Ma
tural Trade Conditions. :
Would Divide Indebt-
edness.

cutting through inc maze vi kSCh
nicalites surrounding the attempted
reorganization of the American To-
tacco Company. General w. i. Iownes.
late consul general of the United
States to Brazil. in an Interview at
the Jefferson Hotel last night. said
uhat what the country needs is con-
dition that restoreS natural compe-
tition in trade" General TowneB was
organizer and president of the 3lo.-
100000 Porto Rican-AmcE!can Tobacco
Company. whioh controls practically
ell the tobacco industry OF Porto RICO.
The requisite ambitions of compe-
tition, Intended b. the spirit and In
tent of tho recent decision OF the
United SAtos Supreme Court, can be
brought about. In his opinion. b. the
appointment of able and Impartial
commission. named by the court II
would be the duty Of such 4 commits
sion to represent all interests involved
and to work out Il solution of the cIth-
Guilty.
General Townes outlines plan to
take care Of the bonded debt of tho
trust. which would involve It's distri-
button among the several Independent
companies. which would be reorSan-
lied. on some equitable basis
Oppose Proposition.
Several Independent tobacco manu-
facturers as well as some OF the sub
sidiary companies OF the American To-
bacco Company. are opposing the plan
tentatively agreed upon between the
officers of tho trust, on the one hand.
and Attorney General Wickersham and
Judge Lacomb. on the other. l. is the
contention OF the Richardson Tobacco
Company (subs!diary) that to subdi-
vide the trust into three companies. as
proposed, leaving the American in ex-
istence with sl70.o0o,oo0. and giving
to each of three sections capital of
more than sl00,o0o.00o. would not re
store conditions OF competition in the
tobacco trade. Tho Surbrug Tobacco
Company. OF New York independently.
thinks that such settlement would
legalize a reign OF terror and that con-
ditions would be worse in the future
than they have ever been"
J. P!erpont Morgan Is quoted AZ say
ing OF this situation: You can't un-
scramble an egg"
Urged Cooperation.
General ToH-ncs said last night at
the Jefferson:
"Foresceing that these very condi-
lions OF contention would arise ulti-
mately before agreement on n plan OF
settlement OF the tobacco trust by de-
cision OF the Supreme Court, / wrote
several months ago letter 20 the sec
rotary Of the Board OF Trade Of one
OF our important cities in the heart OF
the tobacco belt. urging that body to
take action at once by the appointment
OF Il committee 20 go before the court
ct New York, with able counsel. to urge
that former conditions of competition
in the tobacco trade be restored.
urged that tho trust would make a
vigorous fight TO retain Its autonomy.
with all the power that necessarily
went herewith; that 1t would naturally
fight to retain its monopolistic posi-
ton.
1T seems that my prediction has
been fulfilled. The proposed plan
OF settlement as tentatively sgreed on,
would not restore competition In any
quarter OF the United States. AS MIR.
Surburg says. the sanction Of the pro-
posed plan By the highest court would
legalize robbery and take away from
the people the right of redress from in
sufferable wrongs
Have Broken Shell.
MIR. Morgan thinks you can't un-
scramble an egg We can at least re-
ply that we have already broken tho
shell of very bad egg. and it doesn't
make IT any more palatAble to divide
II into three parts. although 1t may
the country needs is conditions that
restore natural competition in trade.
! take 1t that such was the spirit ana
intent Of the decision OF the Supreme
Court.
About a year ago l was in CORE
spondence with the strongest cigarette
and tobacco company of Germany and
Cairo, Egypt, who carefully investi-
gated at that time tho advisability of
establishing branch OF their manu-
featuring business In the United States.
they finally decided that the tobacco
trust was too powerful In the United
states for them to undertake the bus
mess In this country. although they
themselves had something like 100000
700 invested in their business in those
countries. Here was u chance to build
up competition in the trade. and, al
thoush assure you that the matter
was at the time seriously considered
oy the parties, they finally took the
advice OF their New York bankers. who
advised them that the trust was too
strong for that company to thin,. NJ
competing. and with new and unknown
brands of manufactured goods. So the
scheme fell through.
Would Help All.
with an effectuaI dissolution OF th.
trust every class of citizens. produc
ers of leaf tobacco and" consumers of
manufactured goods. would be bene-
hted Competition in the purchase of
leaf would as surely advance It's price
as would manufactured goods decline
In price.
Thus tho masses OF the people would
90 benefited, and the ten trust barons,
holding hundreds OF millions OF tobacco
trust securities, would cease to reap
their harvest of plumber Of the people,.