Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1911-06-09
TOBACCO TRUST HELD
TO Be LAW YIOL.ATOR
Rule of Reason Applied by
Supreme Court TO Another
Gigantic Monopoly.

washington. May S0.-The government
yesterday won a sweeping victory over
the so-called tobacco trust" when the
supreme court of the United States held
the American Tobacco company and iti
allied corporations to be operating ir
violation OF the Sherman antitrust law,
BY directing that the combination be
forbidden the privilege OF interstate com.
merce or be placed in the hands OF a
receiver unless IL disintegrated within
harmony with the law in six, or at most
eight months. the court is regarded to
ave dealt with the tobacco corporation
more drastically than with the Standard
Dill Company of New Jersey, whose disso-
ution was ordered two weeks ago.
Both the first n second section OF the
Sherman antitrust law have been vio-
ated by the so-called tobacco trust. ac-
.ording to the court. Not only has II re-
raine w~rongfully n unlawfully inter
tate MINER In the eyes of the court,
,ut 1t has attempted to m~onopolize the
obacco business TO the injury OF the pub
ic and of It's competitors.
The court reiterated its determination to
ollow the rule OF reason" In determining
What restraints of trade violate the Sher-
nan antitrust law. Chief Justice White
explained at length the decision OF the
court in the Standard OIL case, but did
iot qualify the reasoning In that case so
Us to harmonic 1t In any particular with
he dissenting views expressed Ia that
,ase by Associate Justice Harlan and 9th,
.r critics OF the decision.
1t is regarded rs settled hat the rule
Il reason" will prevail In the courts OF
he and in the Interpretation OF the Sher-
nan antitrust act, until at least the per-
Ionnel OF the supreme court greatly
n noau nr fha Gharn,an antt r,,a tou,
S amended.
In reality the decision was nothing less
han a deliberate exemplihcation of the
application OF the rule of reason to
'undisputed facts"
Thorough Going Monopoly.
From the date OF the organization of the
irst combination the court found that
here was a purpose TO acquire dominion
md control OF the tobacco trade, not by
he mere exertion of the ordinary right "a
contract and TO trade. but hy methods Dc.
tised In order to m~onopolize the trade by
irving competitors ent Of business.
This purpose was carried out ruthless.
v, according to the court, upon the as.
sumption hat to work upon the theory
,r play upon the cupidity OF competitors
you'd make success possible. Such
tction, viewed in the light OF reason
vas regarded by the court as violative OF
he law.
ON practically every point on which tho
government appealed from the decision OF
he lower court II scored a victory today.
n the first place, James Il. Duke and the
s other individual defendants were held
o be parties TO the unlawful combination
instead OF being freed from further respon-
ibility in the case as directed by the cour
Delow.
Instead OF ~disnisslng the bill as to the
imperial Tobacco company, the so-cailed
British trust, and as to the British Amer
can Tobacco company, the creature OF
he two parent tobacco trusts. these two
corporations were held to be co-operator,
n the unlawful combination. SO. too
vas the United Cigar stores, a retail or
,anization throughout the country.