Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-12-06

Standard on trust. The main company
was the American Tobacco company,
a manufacturing, selling and holding
company. The plan adopted TO de-
stroy the combination and restore com
petition involved the rediyision Of the
capital and plants Of the whole trust
between some of the companies con
stituting the trust and new companies
organized for the purposes OF the de-
cree and made parties TO IT and num-
berlng, new and old, fourteen.
Situation After Readiustment.
The American Tobacco company
(old), rcadiusted capital 500 100000;
the Llggett & Meyers Tobacco company
new, capital $67 100000; the p. Lorll-
lard company new, capital $4,000
COO and the II. j. Reynolds Tobacco
company (old), capital S7,525,000, are
chiefly engaged IN the manufacture
and sale of chewing and smoking to-.
bacco and cigars. The former one tin
foil company is divided into two one
Of SS25 600 capital and the other OF
divided into three companies, one with
capital Of $15,O00,000, another with n
capital of SS,0O0,00O and third with
capital of SS,0O0,000. The licorice
companies are two, one with capital
of S5.75s 800 and another with capl-
tai Of $2,000000. There is also the
British-American Tobacco company. n
British corporation, doing business
abroad with capital OF $26000,000,
the Porto Rican Tobacco company,
with n capital OF 81 100000, and the
corporation of United Cigar Stores,
with capital Of $9,000000.
Under this arrangement each of the
different kinds of business will be dis
tributed between two or more compa
MES with division OF the prominent
brands In the same tobacco products,
so as to make competition not only
possible, but necessary. Thus the
smoking tobacco business OF the c0un-
try is divided so that the present In
dependent companies have 2130 per
cent, while the American Tobacco com
pany will have 33.0S per cent, the Lig-
gett & Meyers 20.05 per cent, the Loril-
lard company 22S2 per cent and the
Reynolds company 266 per cent. The
stock OF the other thirteen companies,
both preferred and common, has been
taken from the defendant American
Tobacco company and has been dis
tributed among its stockholders. All
covenants restricting competition have
been declared null and further per
formance Of them has been enioined.
The preferred stock of the different
companies has now been given voting
power which was denied It under the
old organization. The ratio of the pre-
ferred stock to the common was as rs
to 40. This constitutes very decided
change In the character OF the owner
ship and control of each company
In the original suit there were TWEEN
ty-nine defendants, who were charged
with being the Conspirators through
whom the Illegal combination acquired
and exercised its unlawful dominion.
Under the decree these defendants will
hold amounts of stock in the various
diSunbutee companies ranging from Al
per cent ms maximum to 2Sia per
cent aS a minimum, except In the case
of one small company, the Porto Rican
Tobacco company, In which they will
hold - per cent The twenty-nine in
dlvidual defendants are enjoined for
three years from huying any stock tx
Icop from each other, and the group is
thus prevented from extending its con
trol during that period, Al parties to
the suit and the new companies who
are made parties are eniOined perpet-
ually from In any way effCcting any