New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-11-01
MODIFIED TOBACCO PLAN
UPfD BY W|CKERSHAM
Tri.d to Aid Company and Court,
he Says, in Averting Ruin
of a ReCeiverShip.
|NlC0LL TAKES UP DEFENCE
Ledyard Calls Government s
Contentious Absurd-Choate
Speaks for Bondholders-
Judges to Draw Decree.

Attorney General Wickersham, in his
oral argument yesterday before Judges
Lacombe. Coke. Moves and Ward. of the
United States Circuit Court. did not
in erpose any direct objections to the re-
organization plan Of the American To-
bacco Company beyond explaining his
suggestions submitted to the court the
day before as to the conditions that
should be imposed by the court in ac-
cepting the plan. The Attorney General
said the failure to find some means of
dividing this great combination and the
resultant receivership and injunctions
would have meant a tremendous catas-
! trOphe to the industries of the country
| and that it was for this reason that he
! had used every effort to aid in the
formulation Of plar that would comply
with the law.
As to the continued ownership of stock
b the same men i'm the same proper
tons in al the new companies that were
TO be created TO compete, Mr.. Wicker
| sham said that he was theoretically o.
| posed to il, and that If it had been prac-
/ ticable he would have insisted that in
| this case different disposition should
/ ne made But, the Attorney General
| added, he was confronted with a series
of presidents in the Supreme Court and
| with the practical condition imposed by
| tn highest court in limiting the time for
| disintegration. thus indicating that it did
not contemplate any such change.
The governments demand that it
| should have the right to bring the case
into court for review during a period Of
! five years. or at least three. was again
e. ,rgetcally advocated by the Attorney
| General. Anticipating the objections
/ that would be made TO this demand by
/ the opposing counsel Mr.. Wickersham
said that this provision in his opinion
would not affect seriously the issue of
! the new securities, while il would keep
/ open the door of this court to the gov
! eminent in case the fact should be
| proven in the practical operation Of the
! plan that it did not really restore COM
petitive conditions. He was equally in
sistent upon a complete change In the
stock ownership Of the United Cigar
stores Company.
Wiokersham Evokes Protests.
/ Joseph II. Choate. representing the
| per cent bondholders' committee protest
ed vigorously against the demand of the
government for the fve-year clause. He
said that the bondholders would refuse
, TO surrender their securities under such
an arrangement, as the government
might come in at any moment and dis
turb conditions or destroy the whole
groundwork of reconstruction. IF this
condition were incorporated in the de-
cree not a single bondholder would
come in" Mr.. Choate exclaimed.
The protest of the American Tobacco
Company against this demand of the
government was made in more drastic
language by Lewis Cass Ledyard. lie
denied the right of the court TO impose
such a condition. declared that it would
be fatal to the success Of the plan and
that it was absurd. He spoke of the
rumored prosecutions and those already
pending against other combinations
and saving that politics was an un
known force in our government he ats
tempted to show how dangerous it
might be if an INSCRIPTIONS Attorney
General should succeed to this right by
which business was to he conducted by
the license of the executive government
The matter now rests with the four
! Judges Of the United States Circuit
| Court, who will proceed TO draft de-
/ cree after they have reached an agree
ment among themselves. II was said
Yesterday that the parties TO the suit
would be called for further conferences
with the Judges before the decree would
| be issued
When tne court convened yesterday
the setting of the scene did not differ in
the least from that of the day before.
/ There was the same array of legal rep
resentatives and the courtroom was filled
to its capacity. Delaney Nicoll took
up his argument in reply to the objec-
tons made TO the plan by the indie
pendent interests
Delaney Niool Defends Plan.
Mr.. Nicoll spoke of the difficulty en-
countered in devising the plan and Of the
opposition by the Attorney General.
whose most drastic and radical de-
mands had been embodied in the plan"
despite the fact that they imposed upon
/ the stockholders Of the company enor-
nous burdens.
The independent tobacco and cigar
manufacturers who opposed the plan,
| Mr. Nicoll said, represented a business
valued at more than $3.50. 10000 a year
and were combined in this cause TO Grip
pie the small competitor Mr Nicoll
/ continued:
/ These are the poor doVntrodden and suf-
/ ferng persons whom Mr.. Brandeis, Mr.
/ Yerkes and others described 10 this court
/ Yesterday These interests. one firm alone
| Of which manufactures more than 100000
/