Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1911-11-03
LAST WORD ON TRUSTS
GUIDANCE OF COMBINES IN Fu.
TuRE GIVEN BY WlckERsHAM.
Objections to American Tobacco Co.'S
Plan Of Dissolution Is Filed by
Attorney General.
THE GOVERNMENTS LAST WORD ON
TRUSTS.

THE GOVERNMENTS LAST WORD ON
TRUSTS.
In his answer to the tobacco trusts plan
Of dissolution, Just filed, Attorney General
Wlckersham laid down this dlcta for the
guidance OF trusts in future:
Ownership Of 30 per cent In another
company Is allowable.
No officers and directors In common.
They shall not retain or employ the
same clerical or other organization or oc-
cupy the same offices.
They must not have the same agencies
for the purchase Of raw materials or for
the sale Of the finished products.
That the stock OF the United Cigars
Stores Co. must be sold and distributed to
parties other than the 90 defendants In
this suit and must not be sold to the trust
common stockholders.
New York City.-The public hear
ings of the plan submitted by the
tobacco trust for dissolution and re-
organization under the decree of the
United States supreme court began
before United States Circuit Judge
Lacomb Noyes, Holt and Ward here.
The epoch making event attracted the
largest array of legal talent that has
been brought together in court room
in New York at one time in many
years, representing the trusts forces,
Independent tobacco dealers and the
government. The government forces
were headed by Attorney General
Wickersham, assisted by Special Dep
ity Attorney General ]. c. Mercy
nolds, who prepared and prosecuted
the suit against the great tobacco
combination. Attorney General
Wickersham filed with the court
carefully prepared bill of objections
to the plan. The attorney generals
cross petition prescribes IA con-
ditions with which the plan must
comply before the government would
feel satisfied and he prefaces his de-
mands as follows:
Maps Out Conditions.
obviously the effect of any plan of dis
integration must be more or less a mat
ter of conjecture and II Is impossible for
the court to determine in advance whether
or not plan will actually accomplish the
purpose intended. Any decree determin-
ing upon plan should therefore reserve
to the government the right at any time
within five years to apply for other or
further relief To that end each and
everyone of the new corporations organ
lied for the purpose of carrying out the
plan should be brought in as party to
this suit"
The attorney general asks that what
ever plan be adopted II shall be subject
to the following conditions briefly stated:
The corporations among which the
properties and businesses in the combi-
nation are to be distributed for a period
of five years shall not have any officers
or directors in common.
These companies shall not have any
stock interest in each other.
They shall not employ the same agen-
any other raw material, or for the sale Of
tobacco or other products.
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 which the prop
critics of the combination are distributed.
ITO the end that the 29 individual defend
ants in this suit" the attorney general
continues, shall not increase their con-
troll over any OF the corporations among
with the properties now in the combina-
tion are to be distributed, pursuant to the
plan. that such defendants be severally
enjoined from at any time within ive
years acquiring. directly or indirectly, the
legal or equitable ownership of any
amount of stock in any one Of said cor
porations in addition to the amounts
which they would respectively hold and
when the plan shall have been carried
out as proposed"
The further suggestions Of the govern
ment include the following:
That in the distribution of the prop
critics and businesses pursuant to the plan
of disintegratien the corporation shall be
allowed to acquire property which would
invest 1t with as much as 40 per cent. In
volume or in value of any particular line
Of the tobacco business.
That all covenants in any way r@-..-.i-
ing the right of any company or indi-
vidual In the combination to buy, manu-
facture or sell tobacco or Its products
should be rescinded by the affirmative ac-
ton of the respective parties to this suit
That the action terminating covenants
be ampliied so as to include like action
with respect to all covenants not only con-
cerning the tobacco business but any
other business which is in any way en-
braced in the combination.
That the stock of the United Cigars Co
be sold and distributed to parties other
than the 20 individual defendants or Others
| of the common stockholders of the Amer
| lean Tobacco Co.
| In conclusion the attorney general asks
| for a general injunction prohibiting the
recreation of the combination or OF any
similar combination
November 80 Thanksgiving.
A l.