The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1911-06-03
COURT SAYS TOBACCO
TRUST MUST DISSOLVE
Second of Country's Big Com.
binations to Be Hit.
Government May Proceed Against
Twenty-Five individuals Named
In It's Original Bill Of
Complaint.


cases was decided In Washington by
the supreme court OF the United
States, when IL ordered the dissolu.
ton Of the American Tobacco com.
pany.
The dissolution, however, unlike
that OF the Standard Oil company. is
TO be carried on under the direction
OF the lower court-the circuit court
OF appeals for the southern district Of
New York. The supreme bench places
upon that court the burden of devislng
not only a plan OF dissolution, but OF
"recreating, out Of the elements now
composing II, a new condition which
shall be honestly In harmony With and
not repugnant TO the law"
In order TO enforce such a decree,
II became necessary for the supreme
court to reserve and remand the Ease
TO the federal court In New York. The
decision Of the supreme court goes
much farther than that OF the lower
tribunal II includes within the on
demnation OF the decree, the twenty
nine individuals named in the govern
ment's bill Of complaint, the two Eng.
fish corporations. the British-American
Tobacco company and the Imperial To
bacco company. and also the United
Cigar Stores company.
Chief Justice White. who read the
opinion, held that the circuit court OF
appeals had erred in dismissing the
governments bill OF complaint against
tho individuals and the foreign cor.
porations and also in not granting the
governments prayer and including
within the decree the United Cigar
Stores company
In brief the supreme court com
pletely sustained all Of the vital points
%contended for In the original bin OF
complaint filed by the government.
Attorney-General Wickersham in a
formal statement expressed great
pleasure over the decision by the high.
est court.
1T Is scarcely TO be conceived that
any comprehensive and effective
application OF the statute 10 this vast
combination could have been decreed. -
One OF the important effects OF the
enlarged decree entered by the SUI
preme court is that II makes possible
a criminal action against the TWEEN
ty-nine individuals named In the gov
ernment's original bill OF complaint
These defendants now stand In eX-
actly the same attitude as John D..
Rockefeller and his associates, whose
prosecution under the criminal stat.
utes is now being urged in the senate
in connection with the Standard oil
case.
The defendants include James b.
Duke, Caleb c. Dula. Percival S Hin,
George Arents, Paul Brown, oliver II.
Payne. Thomas f. Ryan. William II.
McAllister. Anthony n, Brady. Benja,
min n. Duke, II. NJ. Hanna, Herbert
ID. Kingsbury, Pierre Lorrilard, Rufus
l.. Patterson, Grant ID. Schley and VIII
hanson w. Fuller.
The tobacco trust is TO have six
months in which 20 put It's house In
order and 20 reorganize in a way that
will comply with the law. Meanwhile
the trust ls enjoinod from taking any
further steps 90 enlarge It's powers. or
committing any further actions that
are unlawful The lower court is au-
thorized In It's discretion 90 add sixty
days TO the six months period. In
the event OF the failure of the de
PENDANTS to comply with the law in
that time the court Is directed TO pro-
ceed by injunction, or II necessary by
the appointment OF a receiver 90 ac-
complish the reformation OF the Amer
lean Tobacco company and It's subor'
dinates and its associates into an or.
ganization that will square with the
law.
The opinion was unanimous except
for a dissent by Associate Justice Har.
Ian. The venerable justice again
voiced his protest against the action
by the majority Of the court in con
STRUNG the law sin the light OF rea.
o n He characterized the action OF
the court as "usuTpation OF the
judiciary" and INDUCED in other EN-
phatic statements that were little less
than sensational.