Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-12-07

cent as n 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-
cent from each other, and the group Is
thus prevented from extending its con-
troll during that period. All parties to
the suit and the new companies WHO
are made parties are enioincd perpet-
TALLY from in any way effecting any
combination between any of the com
panies In violation of the statute by
way of resumption OF the old trust
Each OF the fourteen companies is en-.
joined from acquiring stock in any of
the others. All these companies are
eniolned from having common drec-
tors or officers. or common buying or
selling agents. or common Offices, OF
lending money to each other.
Size Of New Companies.
Objection was made by certain in
dependent tobacco companies that this
settlement was unjust because 1t left
companies with very large capital in
active business and that the settle
ment that would he effective to put all
on an equality would he n division of
the capital aud plant of the trust into
small fractions in amount more near.
ly equal to that Of each of the indie.
pendent companies. This contention
results from misunderstanding of
the antitrust law and its purpose. 1t
is not intended thereby to prevent the
accumulation of large capital in bust
ness enterprises in which such IA com
bination can secure reduced cost of
production, sale and distribution. It
is directed against such an aggrega-
ton of capital only when its purpose
is that Of sitting competition. cnhanc.
ing or controlling prices and establish.
ing Il monopoly. If we shall have by
the decree defeated these PURPOSES
and restored competition between the
large units into which the capital and
plant have been divided we shall have
accomplished the useful purpose Of
the statute.
Confscaton Not the Purpose Of the
Statute.
1t Is not the purpose Of the statute
to coniiscatc the property ana capital
Of the offending trusts. Methods If
punishment by fine or imprison!Nrnt
of the individual offenders. by fine of
the corporation or by forfeiture of its
goods in transportation are provided.
but the proceeding in equity IS spc-
cific remedy to stop the operation Of
the trust by injunction and prevent
the future use Of the plant and capital
in violation Of the statute
Effectiveness Of Decree.
I venture TO say that not in the his.
tory of American law has n decree
more effective for such purpose been
entered by court than that against
the tobacco trust. As Circuit Judge
| Moves said in his judgment approving
! the decree:
"The extent to which IT has been
necessary to tear apart this combine
ton and force it into new forms Will
the attendant burdens ought to demon
strate that tho federal antitrust statute
is n drastic statute which accompliShcs
effective results. which so long as II
stands on the statute books must bt
obeyed and which cannot be dSohey
ed without mourning farrcaching pen
alties, And. on the other hand. the
successful reconstruction OF this or
ganization should teach that the effcct
Of enforcing this statute is not to dc
stroy. but TO reconstruct: not to de
molish, but to recrcatc in GcCordarc,
with the conditions which the congress
has declared shall exist among the
people of the Urited States"
Common Stock Ownership.
1t has been assumed that the pres
ent pro rata and common ownership Il
all these companies by former stock
holders of the trust would insure
continuance OF the same old single con
troll of all the companies into whicl
the trust has by decree been diSiutC
grated. This is erroneous and is baSct
upon the assumed inoficacy and innoc
uousness of judicial iniunctiouS TIN
companies are enioined from cO-opera
ton or combination; they have differ
cnt managers, directors. purchasing
and sales agents II all or many O
the numerous Stockholders reaching
into the thousands. attempt to secul
concerted action OF the companies wit
a view to the control Of the marke
their number is so large that such III
attempt could not well be concealed
and its prime movers and all its 1artic
ipants would be ut once subject to con
tempt proceedings and Imprisonment
Df summary character The immedi
ate result of the present situation vii
necessarily be activity by all the com
panies under different managers. an
then competition must follow or thcr
will be activity by one company ant
stugnation by another Only n shor
time will inevitably lead to n chang
IN ownership of the stock. MS all op
! portunity for continued cooperation
must disappear. Those critics who
, speak of this disnteGratiou in the truss
! as mere change of garments have no
given consideration to the inevitabl,
working Of the decree and understand
, little the personal danger of attempt
ing to cvade or set at nauCht the sol
emn injunction of court whose objec
IS made plain by the decree and who's,
inhibitious are set forth with detail
and comprchensiveueSs uneXampled II
, the history of equity jurisprudence.
Voluntary Reorganizations Of Cthe