Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1911-12-06

the different kinds of business will
D., distributed between two o. mora
companies with division of the
prominent brands OF the same tohac-
o.. products, so as to make competi-
ton not only possible bnt necessary
Thus the smoking tobacco business
OF TIE country is divided SO that the
present independent companies have
90 rs per cent while the American
Tobacco Company will have 38.0S
per cent, the Liggett 4 Movers zoos
per cent. the Lorillard Company
22>2 per cent and the Reynolds
Company 2.GG per cent The stock
of the other thirteen companies. both
preferred and common. has been taxi
en- from the defendant American To-
h9cco Company and has been distri-
hgted among It's stockholders. All
covenants restricting competition
have been declared null and further
llea--af Them has -heer en-
Joined The preferred stock OF the
different companies has now been
given voting power which was denied
1t under the old organization The
ratio of the preferred stock % the
common was rs q TO 40 This con
stitutes very decided charge m The
character of the ownership ana con-
troll of each company
lu hc original suit their we're
tWcniy-ninc defendants who were
charged with being the conspirators
through whom the illegal combina-
ton acquired and exercised It's ur-
lawful dominion Under the decree
these defendants will hold anounts
of stock in the various distributes
companies ranging from ~ per cent
as a maximum 10 2Nie per cent as
81 minimum, except in the ease Of 1n"
small ompany. the Porto Rican To-
harco Company, In which they viii
hold g. per cent The twenty-niu'
individual defendants are - Joined
'5r three wears from buyipe any
stock except from each other and
toe crolp Is thus prevented from eye
tending rs control during thar per-
io' Al rar'i,. 80 the suit. aud tho
new companies who are made parties
'lic ruioinrd pcrrciuallv from In any
WY cffcctiug any combination be-
tween guN Of the companies tn Yiu.
lation of tho statute bv way of re-.
sumption Of the old trust E2cn Of
F the fourteen compau.c u enioined
iron acquiring stock d. any OF the
Others. III these companies ane en-
Joined from having common directors
+ or officers. oil common buying or
selling agents or common offices or
lerdius money 10 each other
size OF New Companies
Objection was made by certain IN
dependent tobacco companies that
this settlement, was unjust because IL
! left companies with very large CAPT
ltal in active business. and that tho
settlement thar would be- effective
TO nut 400 on au equality woM dhc d
division ~ the capital and plant ul
the trus, into small independent
comyau,. This contention results
from misunderstanding Of Tire anti
trust law ud .ts purposes !, Is not
intended thereby 20 prevent Doe n.-
cumulator OF larr, capital u bus,
ness enterprises ir which such "a CON
ihinat.pr ..n ,..Hs reduced cost oi
production. sal, ana distribution %
is directed aeaips' such an asgrega-
ton OF capital only whom It's purpose
is that of suflinl competition. en-
'hancing or coutroIuE prices and cs'
tablishinc a monopoly u We shall
have bv the decree defeated these
purposes and restored competition
between the mrc, units into which
the capital and plan have been aiv.d
ed. We shall have accomplished IN,
useful purpose of the statute
CunfiScation Not the Purpose IT
the tSatutc.
u is not the purpose OF the sta
tutc 10 cor''srata '.r nron'r'y 'u.