The Tupelo journal., 1911-12-08

smoking tobacco and cigars. The
former one tin-foil company ID d.
vided into two. one Of $685., 900 cap
ital and the other Of 100000. The
n snuf company is divided into
three companies. one with a capital
Of SIS. 200. 900; another with q cap
ital of $S,000.0 900; and a third with a
capital OF $4,000. 900. The licorice
companies are two. n with q cap
ital OF $5,758.00 and another with q
capital of $2,0Q0.0 900. There is. also
the British-American Tobacco com
pany. a British corporation. doing
business abroad with a capital OF
S26.000. 900, the Porto Rican Tobac.
co company with a capital OF
$780, 00, and the corporation of
United Cigar Stores, with a capital
OF $4,000. 000. Under this arrange.
ment each Of the different kinds OF
business will be distributed between
two or more companies. with a 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 is divided
SO that the present independent com
panies have 21.39 per cent, while the
american Tobacco company will have
3S.O8 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,
10Th preferred and common, has been
taken from the defendant American
Tobacco company and has been dis.
loute among It's stockholders. All
covenants restricting competition have
Deen declared null and further per-
OF them has been enjoined.
Inc preferred stock of the different
companies has now been given vot-
ing power which was denied 1t under
the old organization. The ratio Of
the preferred stock to the common
was as 70 to 40. This constitutes a
very decided change in the character
ol the ownership and control Of
eocn company.
In the original suit there were twen-
LYNNE defendants who were charged
with being the conspirators through
whom the illegal combination acquired
and exercised It's unlawful dominion.
Under the decree these defendants
will hold amounts Of stock In the va
rious distributes companies ranging
from Al per cent. as a maximum to
28k per. cent. as q minimum, except
the case of one small company. the
Porto Rican Tobacco company. in
which they will hold 45 per cent. The
individual defendants are
enjoined for three years from buying
any stock except from each other.
and the group Is thus prevented from
its control during that pc
Rod. All parties to the suit. and the
companies who are made parties,
are enjoined p%erpetually from in any
way effecting any combination be-
tween any OF the companies in viola
ton 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 otht7S.
All these companies are enjoined from
common directors or officers.
Of common buying or selling agents.
or common Offices. or lending money
to each other.
Size Of New Companies.
Objection was made by certain IN
tobacco companies that this
was unjust because 1t left
with very large capital in
business. and that the settle
that would be effective to put all
On an equality would be a division Of
The capital and plant Of the trust into
small factions In amosnt more nearly
equal tc that of each Of the independ-
emit companies. This contention re-
suits from q misunderstanding Of the
law and its purpose. II Is
not intended thereby to prevent the
accumulation of large capital In bust
ness enterprises In which such a COM
can secure reduced cost OF
sale and distribution. It
Is directed against such an aggrega-
lion Of capital only when its purpose
IL that of sitting competition. enhanc-
ing or controlling prices and estab-
a monopoly II we shall have
BY the decree defeated these purposes
Ind restored competition between the
arge units into which the capital and
plant have been divided. we shall have
accomplished the useful purpose OF
he statute.
.o~nfscatior Not the Purpose Of the
Statute.
II is not the purpose OF the statute
n confiscate the property and capital
!, the offending trusts. Methods Of
punishment by fine or Imprisonment
= the individual offenders. by fine Of
he corporation. or by. forfeiture Of Its
in transportation. are provided.
the proceeding in equity is a spe-
,inc remedy to stop the operation OF
he trust by injunction and prevent
he future use OF the plant and capital
violation of the statute
effectiveness Of Decree.
venture to say that not in the his
ENse-a--- 49, 49,. -----