The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-12-06
PRESIDENT TAFT'S MESSAGE
on The ANTITRUST STATUTE
The Law Growing Force and Efeessf Should Be Strengthened Supplemental
Legislation Not Repealed Amended Federal Incorporation Recommended and Fed
e CopahnGommson Proposed Confidence Expressed That Jail Sentences
VIII Be Imposed For Studied and Deliberate Defiance the Law

Standard Oil trust. Tie main company
was the American Tobacco company.
a manufacturing. selling and holding
company The plan adopted to de-
stroy the combination and restore COM
petition involved the redivision Of the
capital and plants of the whole trust
between some of the companies con-
Shutting the trust and new companies
organized for the purposes Of the de.
cree and made parties to it and num-
bering, new and old. fourteen.
Situation After Readjustment.
The American Tobacco company
(old). readjusted capital 500 100000:
the Liggett & Meyers Tobacco company
new. capital S67.OOO,O0O: the P Loril-
lard company new. capital $4,000
600. and the r. j. Reynolds Tobacco
company (oldl, capital S7.525.O 600. are
chiefly engaged in the manufacture
and sale Of chewing and smoking to-
bacco and cigars. The former one tin
foil company is divided into two. one
Of $S25.000 capital and the other Of
100000. The one snuff company is
divided into three companies. one with
a capital of S15.O0O.OOO. another with a
capital Of 100000 and a third with
a capital of SS.OO0.000 The licorice
companies are two. one with a capital
of S5.75S.30O and another with CAPT
tai of 100000. There is also the
British-American Tobacco company. a
British corporation. doing business
abroad with a capital of S26,O00.O00.
the Porto Rican Tobacco company,
with a capital of S1.S00.O00. and the
corporation of United Cigar Stores.
with capital Of S9.OOO.0O0
Under this arrangement each of the
different kinds of business will be dis
tributed between two or more compa-
MES with a division Of the prominent
brands in the same tobacco products,
so as to make competition not only
possible. but necessary Thus the
smoking tobacco business of the coun-
try is divided so that the present in
Dependent companies have 2130 per
cent, while the American Tobacco COM
pany will have 33.08 per cent, the Lig-
gett & Meyers zoos per cent. the Loril-
lard company 22.S2 per cent and the
Reynolds company 2.66 per cent. The
stock Of the other thirteen companies,
both preferred and common. has been
taken from the defendant American
Tobacco company and has been dis
tributed among it's stockholders. All
covenants restricting competition have
hnoa Gnnlo uad
Torrance Of them has been enjoined.
The preferred stock Of the different
companies has now been given voting
power which was denied it under the
old organization. The ratio Of the pre-
ferred stock to the common was as IS
to 20. This constitutes very decided
change in the character Of the owner
ship and control Of each company
In the original suit there were twen-
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
Distribute companies ranging from ii
per cent as a maximum to 2S1s 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-Five in
dividual defendants are enjoined for
three years from buying any stock ex-
|cept fronn each other. and the group is
thus prevented from extending it's con.
troll during that period. Al parties to
the suit and the new companies who
are made parties are enjoined perpet-
ually from in any way effecting any