The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1911-12-07

ital and the other a $500. 000. The
OF" A!iNf coiuIany is divided into
three companies. on Nlta a capital
of $4,000, 900, another with a cap
ital Of $500. 600; ard y third wish 4
capital al s., 100000 The licorice
companies arc two. one with q cap,
ital OF &5.758.00 and another with q
capital OF $1,000, 900. There is, also,
the British-American Tobacco COM
pahy, Il British CORPORATION, doing
business abroad with a capital OF
s26,oOO,00 the Porto ltican I'obac-
co company with a capita! of
s~lSqo,ooo. ard the corporation OF
United Cigar Stores, with a capital
OF 5000, 900. Under this arrange
mcAt each Of the different kinds of
business will be distributed between
two or more companies, with a di-
vision Ct the prominent brands in the
SINE tobacco products, so as to make
competition ret only possible but
necessary. Thus the smoking tobac-
co business Of the couutry is divided
SO tlat tie present independent com.
Pan!es ave 21.39 per cent. while the
American Tobacco company will have
sos Per cent, the Liggett and
Meyers zoos per ccnt,. the Lorillard
COM any ESQ per cent, and the
~lte.nolGs company 2.66 FER cent. Tho
stock of the ether thirteen companies.
bGsh preferred and common. has been
taHeu frcm the defendant American
lobacco company and has been dis
Illn1tGN nt,y txo c3aris-J an
covenants restricting competition have
oeen declared null and further per
torrance of t. EN- has been enjoined.
ibe preferred stock oil the different
ccEaranies 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 Is to 40. This constitutes a
g y Geclded change III The character
OF the ownership and control Of
each company.
la the orisina! suit .here were TWEEN
ty-nire defendants who were charged
"lth Eelng the c~onspirators through
WHOM the Illegal combination acquired
and exercised it's unlawfu! dominion.
Under the decree these defendants
Nill liosd mounts of stock in the va
nous az titute@ companies ranging
from ~ Tor cost. as Il rnaNimum TO
2Sls PEI c2ai IS a l.3lHimuIn. except
in the c. . OF me small company. the
Porto i'i1an |o1;,cco company. in
which hey VIII Eo!G - leg cent. The
twenty lille indiyi.u a defendants are
enjoined for three years from buying
amy stock except from each other.
and the group is thus prevented from
extending IFS control during that pc
fiol. All parties to the suit, and the
new companies Who are made parties.
are e%njoined perpetually from in any
way etTect.ns any combination be
tween any of the companies il viola
Non eli the statute ly way of resump-
ton of the old trust. Each of the
fourteen companies is enjoined from
acquiring stock in any Of the others.
MI 'tese companies are enjoined from
having common directors or officers.
or onnon buying or selling agents.
or common offices. CT lending money
to each other.
"lE~ oi NCW AStI'ECiiieS.
Objection was made by certain IN
dependent tobacco companies that this
settlement was unjust because it left
companies With Very large capita! IL
active business. and that the settle
ment that would lie effective TO put all
Oh an equality would be a division of
the capital and plant CT the trust into
small factions III amount more nearly
equal to that OF each of the independ.
ent companies. This contention re-
suits from u 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 a com
bination can secure reduced cost OF
production. sale and distribution. 1t
is directed against such an aggresa-
lion of capital only when it's purpose
is that of sitting competition, enhanc-
ins, or controlling prices and estab.
l;:hine q monopoly. IT 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.
Ut is not the purpose Of The statute
TO c~onhscate the property and capital
OF TIE offending trusts. Methods OF
punishment by fine Or imprisonment
of the individual offenders, by fine OF
the corporation. OF by forfeiture OF Its
goods in transportation, are provided,
hut tie proceeding in equity is a spe.
cific remedy to stop the operation OF
the trust by injunction aud prevent
the future use Of the plant and capita
in violation of the statute.
Effectiveness of Decree.
>, venture to say that not in the his
tory Of American law has a decree
more effective for such a purpose
been entered by a court than thai
against the Tobacco trust. AS Circuit
Judge Moves said in his judgment ap