Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-05-30
Trust Indicates No Fear
of Loss of Profits
Thereby.
LONDON PRICE FIRM
Criminal Prosecution of Officers
of the Concern is Being
Contemplated.

London, May 30.-The decision OF
the United States supreme court hold
ing the American Tobacco company to
be a combination in restraint of trade
and monopoly in violation of law had
little effect on American societies here
today and prices opened a fraction
higher.
BUSINESS GOES ON.
Richmond. May 20.-The decision in
the tobacco case is viewed with lit
tie concern by the operating officials
of the American Tobacco company's
huge factories here. An official said:
Manufacturing must go on but IL
seems possible that under the re-
quired reorganization we may be in
convenienced by having a clumsier
and more extensive system with sep
arated companies, increased book
keeping. more officers and other
features not in harmony with mod
ern business methods"
MAY PROSECUTE OFFICERS.
Washington, May 3O.-The possibiD.
ties of criminal prosecutions of indi-
vidual members of the tobacco trust
department of Justice. In respect To
criminal prosecutions the tobacco case
is said to differ somewhat from Stan
dard Oil. In the latter Attorney Gen
eral Wickersham said no criminal
prosecutions We're under way. but de
clined TO say positively none were
contemplated.
PROBLEMS DELICATE.
Certain questions regarding the ap-
plication of the statute of limitations
enter into both cases and it is said
the legal problems involved are decli.
cate ones.
SWEEPING VICTORY.
Washington, May 3O.-The govern
ment late yesterday won sweeping
victory over the so-called tobacco mo-
nopoly when the supreme court Of the
United States held the American To
bacco company and its allied corpora
tions to be operating in violation Of
the Sherman antitrust law.
BY directing that the combination be
forbidden the privilege of interstate
commerce or be placed in the hands OF
a receiver unless it disintegrates in
harmony with the law within six, or
at the most, eight months. the court is
regarded to have dealt with the tobac
co corporation more drasticaIly than
with the Standard Oil company of New
Jersey. whose dissolution was ordered
two weeks ago.
BOTH SECTIONS VIOLATED.
Both the first and second sections
of the Sherman antitrust law have
been violated by the tobacco combine,
according to the court. Not only has
it restrained wrongfully and unlaw-
| fully interstate commerce I'm the eyes
of the court, but it has attempted TO
monopolize the tobacco business to the
| injury of the public and OF it's com
| petitors.
DECREE UNUSUALLY SEVERE.
While the decree was regarded as un-
usually severe. at the same time there
was a touch of lenency in not making
the combination an outlaw now" The
various elements of the combination
are TO be given an opportunity under
the supervision of the United States
circuit court for the southern district
Of New York, of recreation, so that
there may be brought about "a new
condition which shall be honestly in
harmony with and not repugnant to
the law
The opinion Of the court was an
announced by Chief Justice White. who
also delivered the opinion Of the court
in the Standard OH case. The entire
court agreed that the tobacco combina-
tion violated the Sherman antitrust
law, but Associate Justice Harlan dis
sented from the repeated interpreta-
tion Of the Sherman antitrust law so
as TO call for the application of the
rule OF reason" in determining what
restraints Of trade were forbidden by
the act.
In this respect the division Of the
court was the same as in the Standard
OIL case.
OPPOSES REORGANIZATION.
Justice Harlan also took issue with
the rest OF the court as TO the reorgan-
ization of the tobacco company, saying
he had found nothing IN the record
which made him "at all anxious 10
perpetuaie any new combination among
these companies which the court con-
cedes Bt all times exhibited a con
seious wrcngdcing"
Tho court reiterated its determina-
ton 70 follow the rule Of reason" IN
determining what restraints Of trade
Yisisie tho Sherman antitrust Ia~.
chisf Justice White explained at length
the de6iaien OF the court In the Stand