The Detroit times., 1911-10-31
INSISTS TOBACCO TRUST
Be HELD TO IRON-CLAD RULE
Atty.-Gen. Wickersham Files
Governments Sweeping An
swer to Reorganization Plan.

NNon iOudCSO 10, lOuay uSeon
that work.
The answer OF Atty.-Gen. Wicker
sham TO the plan OF dissolution ana
reorganization OF the American To-
Dacco Co. and co-defendants TO the
governments antitrust suit, was filed
today In the u. 8. district court here.
Ii says In part:
obviously, the effect of any plan
OF disintsgration submitted for the
consideration OF the court must be
more or less a matter OF conjecture,
and Il Is impossible for the court TO
determine in advance whether or not
plan which proposes to restore com.
petitive conditions will actually ac-
complish the purpose intended. Any
decree should therefore reserve to the
government the right, at any time
with within five years from date OF
entry, TO apply 10 the court for other
or further relief upon n showing that,
as a matter OF fact, such plan has
not resulted in creating a new condi-
ton which shall be honestly In har-
mony with and not repugnant TO the
law"
The attorney general asks that
whatever plan be adopted, IL be sub
JSNN w Nht iOliOWlHs
The corporations among which the
properties and businesses in the COM
bination 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
agencies for the purchase of leaf to-
M ut al fnT
the sale OF tobacco or other products.
They shall not retain or employ the
same clerical or other organization, OF
occupy the same Office or Offices.
No one OF them shall hold capitaj
stock In any other corporation any
part of whose stock is also held by
any OF the other corporations among
which the properties OF the combina-
lions are distributed.
Tha. the 20 individual defendants
be severally enjoined from acquiring
directly or indirectly the legal OF
equitable ownership of any amount
OF stock in any one of the corpora
tions in addition TO the amounts they
respectively hold when reorganization
is carried out
That, In the distribution of the
atoms shall be allowed to acquire
property. tangible or intangible. which
will invest them with as much as 40
per cent In volume or in value OF any
particular line of the tobacco bust
ness.
That all covenants in any way re-
stricting the right OF any company or
individual In the combination to buy
manufacture or sell tobacco or=its
products. should be rescinded by the
affirmative action OF the respective
parties thereto who are parties to this
suit.
That the action terminating cove
naHts be amPlifled- so as TO include
like action with respect to all cove
nants not only concerning the tobacco
business, but any other business which
is in any way embraced in the COM
binatlon.
That the stock of the United Cigar
Stores Co. be sold and distributed to
parties other than the 20 individual
defendants or others of the common
stockholders of the American Tobacco
Co, TO the end that the corporation
be entirely separated from any COLI
nection with the corporations among
which the properties and business
now in the combination are to be dis
trlDuted.
Respecting capitalization OF the new
companies, the encouragement says
that the government Is concerned
merely with the disintegration of an
illegal combination, and the recrear
ton of competitive o~~Aitions under
such circumstances and with such
safeguards as will insure the continue
ton OF such competitive conditions
and prevent a recurrence OF the un-
lawful condition found by the court
to exist in this case"
Judge Lacombe, presiding, announc-
cd that the attorneys for the Ameri-
can Tobacco Co would first present
their plans. Following this, repre-
sentatives of the security holders and
attorneys representing the indepen-
dents and other outside interests,
will be heard. The American Tobac-
co Co., then will be given an opDor-
tunity TO answer the objections OF
the various opposing interests.
Attorney General Wickersham will
be heard after all the other speakers
have concluded.
Lewis Cass Ledyard, of counsel for
the tobacco trust, was the first speak
er. He opened with a general argu-
llent for sane and reasonable plan
OF reimbursement" and pictured the
"dire disaster" that might follow the
appointment of a receiver for the
trust. A receivership, he said, would
force the security holders to protect
themselves, and would result in the
strongest kind of monopoly OF the
tobacco business of the country. The
plan under which the trust proposed
TO reorganize, Ledyard declared, had
had the benefit of suggestions from
tie supreme court, from Attorney
General Wickersham and from other
high government officials.
Finally the encouragement asks
for a general Injunction prohibiting
the recreation of the combination or
Of any similar combination, either:
by placing the stocks of any one
or more of said corporations in the
hands of voting trustees or controll-
Ing the voting power of such stocks
by any similar device; or
BY preventing any express or i'm
plied agreement or arrangement like
those adjudged illegal by the supreme
court. relative to the control or man.
Z ngement Of any of the corporations,
or the purchase or sale of tobacco
n -