The Bemidji daily pioneer., 1911-12-06

hold 20 per cent. The twenty mine IN.
Idividual defendants are enjoined for
three years from buying any stock ex-
lcept from each other, and the group is.
thus prevented from extending its con-
Itrol during that period. All parties to
the suit and the new companies who
are made parties are enjoined perpet-
ually from In any way effecting any
com binat ton between any of the COM
panles in violation of the statute by
way of resumption of the old trust.
Each Of the fourteen companies is en-
Joined from acquiring stock in any Of
the others. All these companies are
en1oined from having common direc-
tors or officers, or common buying or
selling agents. or common Offices, or
| lending money to each other. @<"*@ i. E:
| Size Of New Companies.
| Objection was made by certain in
dependent tobacco companies that this
settlement was unjust because it left
companies with very large capital in
active business and that the settle
ment that would be effective to put all
! on an equality would be division OF
| the capital and plant Of the trust into
small fractions in amount more near
~ equal to that Of each of the inde
pendent companies. This contention
results from misunderstanding of
the antitrust law and it's purpose. It
is not intended thereby to prevent the
accumulation of large capital in busi-
! ness enterprises in which such a COM
blnatlon can secure reduced cost of
production, sale and distribution. 1t
! is directed against such an aggrega-
ton Of capital only when its purpose
is that of sitting competition, enhanc-
ing or controlling prices and esta blish
ing a monopoly. If 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
1t Is not the purpose of the statute
to confscate the property and capital
OF the offending trusts. Methods of
punishment by fine or Imprisonment
Of the individual offenders, by fine Of
the corporation or by forfeiture of it's
goods in transportation are provided.
! but the proceeding in equity is a spe-
c1hc remedy to stop the operation of
the trust by injunction and prevent
the future use Of the plant and capital
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 purpose been
! entered by a court than that against
the tobacco trust. AS Circuit Judge
Noyes said in his judgment approving
| the decree:
"The extent to which it has been
necessary to tear apart this combina-
ton and force it into new forms with
the attendant burdens ought to demon
| strate that the federal anti trust statute
Is a drastic statute which accomplishes
effective results, which so long as it
| stands on the statute books must be
obeyed and which cannot be disobey-
ed without incurring farreaching pen
alties. And, on the other hand, the
successful reconstruction of this or
! ganiZation should teach that the effect
of enforcing this statute is not to de.
stroy, but to reconstruct: not to de-
molish, but to recreate in accordance
with the conditions which the congress
! has declared shall exist among the
people Of the United States"
Common Stock Ownership.
It has been assumed that the pres
ent pro rata and common ownership in
all these companies by former stock
; holders of the trust would insure q
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