Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-11-01
Before U. S. Court, in the
American 7 ObaCCO Case.
-Four Judges Take The Case
Under Amusement.
A Decree from The Court Is
Expected Within a Few Days.
Interest. tuesday, ceniefs in Ap-
pearance Of Attorney General.

New York. oct, Sl.-The end was
reached. late today, in the arguments
which have been made for the past
two days before the United States
circuit court for and against the plan
Of dissolution flied by the American
Tobacco Co. Judges Lacombe. Moves.
Coke and Ward took the ease under
adviscment. 4 decree Is expected with
in few days. determining whether the
much discussed plan is in accordance
with the mandate of the supreme
court of the United States which held
the american Tobacco Co. to be an
Illegal combination in restraint Of
trade and ordered that the trust be
disintegrated SO as to restore compe-
tition in the tobacco industry.
Interest in today's arguments cen
tered chiefly in the appearance of At
torrny General Wickersham. He stated
that he approved generally Of the
plan, but at the same time made rec
concentrations which met vigorous
protest on the part of stock and bond
holders of the American Tobacco Co
Mr. Wiekersham insisted that the
court, by injunction To prevail from
y
government the right to appeal to the
court at any time it should appear
that the dissolution of the trust had
not resulted in conditions in harmony
with the antitrust law.
Joseph H. choate. counsel for the
C per celt. bondholders. who are TO
surrender their bonds for stock in the
new seghegated companies. and also
fer lash. protested against this amend
ment lie was supported by Lewis Cass
Ledyard of counsel for the American
Tobacco Co. Both declared that the
INCORPORATION of such clause in the
reorganization decree would upset
The disintegration plans.
The attorney general made no reply
10 those protests. Mr. Wickersham
also was criticized by counsel for the
American Tobacco Co. for suggesting
that the court revise the dissolution
scheme insofar as il relates t. the
United Cigar stores Co. Characterize
irg the alliance of the Stores Com
pany and the trust as one of the chief
sources of complaint from the indie
pendent tobacco trade and as the
trusts arm to harass the retail trade
Of the country. the attorney general
urged that the Stores Company be seq
regated entirely from the trust aili-
aDce through the sale of its stock 10
outside investors.
The attorney general said he had
sought earnestly TO bring about a
plan Of reorganization without re-
sort to a receivership which would be
disastrous and in outlining the gov
ernments attitude in trust prosecu-
tiens he quoted from President Taft's
messages to Congress, expressing his
desire to conserve the legitimate in
terests of property
The guiding principle pursued by
the government in connection with the
disintegration, he added, was TO see
whether the division is made into
parts of smaller magnitude so as to
preclude any possibility of the con-
tinuanca of the present monopoly, and
also To restrain the various corpora
fions among whom the business is to
be distributed, within the bounds of
legitimate and useful business.
''Of course, there is a difference be-
tween case where a combination is
brought before the court for its deter
mination as to whether or not it con
stitutes an unlawful combination, and
a case where it stands before the bar
OF the court condemned as SUCH con-
tinued Mr. Wickersham, land your
honors are examining a proposed dis
indignation for the purposes of bring
ing it into compliance with the law. In
the latter case any reasonable doubt
should properly be resolved against
the proponents and the court should
be very clear that the proposed di-
vision will re-establish that lawful
condition which is the object of tho
decree 10 attack"
Concerning the division of tobacco
brands under the proposed re-organi-
cation plan the attorney general found
no ground for objections made by the
Independent manufacturers and he
satisfied himself on that point by ref
erence TO the department of commerce
and labor.
Concerning that point the attorney
general said:
The commissioners of the depart
ment of commerce and labor placed a.
my disposal one of their experts--in
deed, the principal expert in this TO
bacco business who had himself pre-,
pared very largely, if not entirely. tn,
report on the tobacco industry which
was recently published by that bu
reau. | am going to file that repor
Continued. m - La 90. 81 ~ a 4 lasss