Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1911-05-31
TOBACCO POOL IS
DECLARED ILLEGAL
U. S. Supreme Court Holds Sher-
man Law Violated.
TRADE RESTRAINT is PROVED
Company Is Given Six Months to Dis.
lntesrate-lnJunctlon or Receiver
Will Follow II lnstruc-
tions Dlsobeyed.

washington, May 3O.-The American
Tobacco company and its accessories
and subordinate corporations and com
panies, including the English corpora
ton, were held by the Supreme court
of the United States to be cooperators
In a combination illegal under the
Sherman antitrust act.
The court sent the case back to the
lower court with directions to hear
further the parties SO as to ascertain
whether a new condition cannot be re-
created In harmony with the law. Jvs-
tice Harlan concurred in part with the
courts opinion and dissented in part.
Attempt to Monopoiize Shown.
The opinion held:
1. That the combination, in and of
itself. as well as each and all Of the
elements composing 1t. whether cor
porate or individual, whether consid-
cred collectively or separately, be de-
creed to be in restraint Of trade and
an attempt to monopolize and mon
opolization within the first and second
sections of the antitrust act.
2. That the court below, in order to-
give effective force to the decree in
this regard. be directed to hear the
parties. by evidence or otherwise, as 1t
may be deemed proper, for the purpose
of ascertaining and determining upon
some plan or method of dissolving the
combination and Of recreating, out of
the clements now composing It. new
condition which shall be honestly In
harmony with and not repugnant to
the law.
Six Months Time Allowed.
8. That for the accomplishment of
these purposes, taking in view the
difficulty Of the situation, period of
six months is allowed from the receipt
of the mandate. with leave, however,
in the event. In the judgment of the
court below, the necessities Of the sit
uation require, to extend such period
to further time not to exceed sixty
days.
A. That In the event, before the ex
piration of the period thus fixed, q
condition Of disintegration in harmony
with the law is not brought about,
either as the consequence of the action
Of the court in determining an issue
on the subject or in accepting a
plan agreed upon. 1t shall be theaduty
Of the court, either by way Of an In
junction, restraining the movement of
the products of the combination insthe
channels of interstate or foreign COM
merce, or by the appointment of re-
ceiver, to give effect to the require
ments of the statute. q
Pending the bringing about of the
result, directed by the court, each and
all of the defer dants, individuals as
well as corporations, are to be5re-
strained from doing. any act which
might further extend or enlarge the
power of the combination, by any
means or device whatsoever.
Origin of Tobacco Litigation.
The attempt of the government to
dissolve the tobacco corporation as
violating the Sherman antitrust law
took shape in 1907, when petition
was filed In the United States circui,
court at New York
The government asked that the Am.
erican Tobacco company. its officers
directors and affiliated corporations be
prevented and enjoined from re
straining and monopoiizing commerce
in tobacco
The restraints and the monopsies
alleged by the government were said
to have been obtained by an intricate
system of corporate organization. II
began In 1890, when the first Ameri-
can Tobacco company was organized
The new company took over the bust
ness Of five independent cigarette con-
Germs.
The Continental Tobacco company,
controlling the plug tobacco business:
the American snuff company. the Am
erican Cigar company, the Consolidat-
ed Tobacco company and the American
Stogie company were alleged to b
successive steps in consolidation.