The Birmingham age-herald., 1911-10-31
Independent Manufacturers Petition Court to Disap-
 prove of Proposal
ATTORNEY GENERAL
 WILL APPEAR TODAY
Federal Judges Who Are Hearing Argument Take Active Part in scussion-Brandeis Rep
 resents Dissenters

l New York October So.-The proposed plan for reorganization of the tonaecoJ trust, submitted by the American Tobacco company and co-defendants to the gov ernments antitrust suit. was ooth praised and condemned today before ieo- eral judges for the southern district of New York.
 After Attorney General Wickersham had filed the governments answer to the plan. counsel for the defendants pleaded with the court to accept the dissolution proposal Lewis cass Ledyard. arguing for the defendants. insisted that 1t was an honest plan to comply with the re- ouirements in the mandate of the supreme court for a reorganization that will restore competition in compliance with the sherman antitrust law.
 Supporting the plan, representatives or the preferred stockholders and bondhold- CTS of the American Tobacco company and constituent companies urged approval of the division of the trust into four prin- cipal segregated companies to be operated absolutely independent of each other.
 In support of these interests there ap- reared Joseph H. Choate and others. who insisted that the reorganization plan vas sincere one and pleaded that no hos tile elements be permitted absolutely toF destroy it, though if might be subject to some amendment calculated to assure protection to the property rights of cit- | izens.
 Independents Disapprove Independent manufacturers. dealers and producers of tobacco unanimously disap- rroved the plan on the ground 1t would not result in effectualy breaking up the 1 trust. and that 1t is a sham proposal 10 divide the properties, control of which still would be retained by the group of 1 individuals now dominating the industry. ]. louis D. Brandeis of Boston made the 1 principal argument against the proposal and sought to convince the court that it would be impossible to bring about there- 1 " a restoration of the competitive sys- l lem in the trade.
 | Attorney General Wickersham, appear ing with the special prosecuting attorneys. J. c. Reynolds and Edwin P. Grosvenor,
 will be heard tomorrow. | The answer of the Attorney General filed today did not express general op- position to the dissolution plan, but con- | tained for the guidance of the court many rt restrictions deemed necessary to assure restoration of competition in the tobacco industry.
 In maintaining that it was impossible l for the court to determine in advance whether a plan will actually accomplish effective competition, the Attorney Gen. eral required that right be reserved to the government to apply to the court at any time within five years for other re- 1 lief upon a showing that the plan did not 1 result in a new condition in harmony With | the law.
 Judges Lacomb, Ward, Coxe ard Moves who are hearing the arguments. took ac- tive part in the discussion. When the arguments are concluded it is expected the judges will take the case under ad- 1 visement for the time before announcing | q decision.
 1 Governments Answer
 Attorney General Wickersham's answer 1 to the plan of dissolution and reorganiza- ton of the American Tobacco Co.,. was l filed here today i'll the federal circuit 1 court.
 The Attorney General after referring to
 the directions of the supreme court to re- | | obviously the effect of any plan Of l dIsintegration submitted to the consider l ation of the court, must be more or less 1 a matter of conjecture and 1t is impos- 1 sble for the court to determine In ad-
 vance whether q plan which proposes 10
 restore competitive conditions will act | ually accomplish the purpose intended. l Any decree determining upon plan should therefore reserve to the govern
 ment the right at any time within five l years from the date of entry to apply 1 to the court for other further relief
 upon showing that as a matter Of fact
 such plan has not resulted in a ns~ con-
 dition which shall be honestly in harmony
 with and not repugnant to the law To | that end each of the new corporations proposed to be organized for the purpose l of carrying out the plan should be i brought in as q party to this suit in or- l der to be subjected to the Jurisdiction of | the court and bound by Its decree" The attorney general asks that what l ever plan be adopted it be subject 10 the following conditions. briefly stated: The corporations among which the prop
 critics and businesses in the combination
 are to be distributed for a period of five
 years shall not have any officers or di- 1 rectors in common.
 1 These companies shall not have any | stock interest in each other.
 They shall not employ the same agen-
 cies for the purchase of leaf tobacco or | other raw material, for the sale of to- 1 bacco. They shall not retain or employ | the same clerical or other organization
 or occupy the same offices.
 No one of them shall hold capital stock | in any other corporation, any part of ] whose stock Is also held by any of the | other corporations among the properties | of the combination are distributed.
 ''To the end that the go individual 1 defendants In this suit" the Attorney General continues, shall not increase their control over any of the corpora
 tions among which the properties and business now in the combination are to
 be distributed pursuant to the plan, that
 such defendants be severally enjoined from at any time within five years of I the date of the decree, acquiring, direct ly or indirectly, the legal equitable
 ownership of any amount of stock in any one of said corporations in addition to the amounts which they would re-
 spectvely hold and when the plan shall
 be carried out as proposed.'
 Further Suggestions | The further suggestions of the gov ernment included the following: