The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1911-12-08

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manufacture ana sals Of, chewing; ana
/ smoking tobacco and cigars The
former one tin.foil company IL di.
vided Into two. one Of $4,000 cap
ital and the other Of 100000. Tho
one snu1 company IL divided into
three companies; one with q capital
Of $15, 900, 900; another with cap
ital Of $s.000,000, and . third with, q
capital Of $4,000. 900. The licorice
companies are two. one with ., cap
ital OF $6.768.00 and another with q
capital Of $1.0o0.0o0. There IL. also.
the British-American Tobacco COM
pany. British corporation. doing
business abroad with a capital Of
$4,000. 000.. the Porto Rican Tobac-
co company with q, capital Of
xl.s00.o00, and the corporation Of
United Cigar Stores. with capital
OF $9.000.00 Under this arrange
ment each Of the different kinds OF
business will be distributed between
two or more companies, with q d.
vision Of the prominent brands In the
same tobacco products, so as to make
competition not only possible but
necessary. Thus the smoking tobac.
co business Of the country 10 divided
SO that the present Independent com
panies have 21.39 per cent, while the
American Tobacco company will have
33.OS per cent, the Liggett and
Meyers zoos per cent. the Lorillard
company 22.S2 per cent. and the
Reynolds company 2.66 per cent. The
STOCK OF the other thirteen companies,
Doth preferred and common. has been
taken from the defendant American
Tobacco company and has been dis.
tr1outed among its stockholders. All
covenants restricting competition have
been declared null and further per.
romance of them has been enjoined
Inc preferred stock of the different
companies has now been given vot.
ing power which was denied it under
the old organization. The ratio OF
the preferred stock to the common
was as 70 to 40. This constitutes q
very decided change in the character
OF the ownership and control Of
each company.
In the original suit there were TWEEN.
LYNNE 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 va.
r1ous distributee companies ranging
from Al per cent. as a maximum to
2S9 per cent: as a minimum, except
In the case Of one small company, the
Porto Rican Tobacco company, in
which they will hold As per cent. The
twenty-nine individual defendants are
enjoined for three years from buying
any stock except from each other
and the group is thus prevented from
extending its control during that pc
Rod. All parties to the suit, and the
new companies who are made parties
are enjoined perpetually from in any
way ehecting any combination be.
tween any Of the companies in viola
tion of the statute by way of resump
ton OF the old trust Each of the
fourteen companies is enjoined from
acquiring stock in any of the others
All these companies are enjoined from
having common directors or officers
or common buying or selling agents
or common offices. or lending money
to each other.
Size Of New Companies.
Objection was made by certain In
dependent tobacco companies that this
settlement was unjust because It left
companies with very large capital ir
active business, and that the settle
ment that would be effective to put all
on an equality would be division OF
the capital and plant Of the trust into
small factions in amount more nearly
equal to that Of each of the independ
ent companies. This contention re
suits from a misunderstanding of the
antitrust law and its purpose. It is
not intended thereby to prevent the
accumulation Of large capital in bust
ness enterprises in which such a com
bination can secure reduced cost OF
production, sale and distribution. II
is directed against such an aggrega,
ton Of capital only when its purpose
is that of sitting competition, enhanc
ing or controlling prices and estab
fishing monopoly. II 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.
confiscation Not the Purpose Of the
| Statute.
It Is not the purpose of the statute
to conf1scate the property and capital
of the offending trusts. Methods OF
punishment by fine or Imprisonment
Of the individual offenders, by fine of
the corporation, or by forfeiture of its
goods in transportation. are provided.
| Int the proceeding in equity IA a sne.