Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-10-31
Proposed Plan Of Reorgan-
izatiOn of American Co.
Praised, Monday, Before United
States Circuit Court Judges.
Called Honest Effort 10 Comply with
Courts Requirements.


plan for reorganization of the To-
bacco Trust submitted by the Ameri-
can Tobacco Co, and it's co-defendants
in response to the United States su-
preme courts decision was praised,
today. before the circuit court judges
of the United States for the southern
district of New York.
After Attorney General Wickersham
had fled the governments answer to
the plan, counsel for the defendants
pleaded with the court to accept the
dissolution proposal. Lewis Cass Led
yard. arguing for the defendants in
sisted that it was an honest effort to
comply with the requirements in the
mandate Of the supreme court for a
reorganization which will restore
competition of the trade in compliance
with the terms of the Sherman anti
trust law. Supporting the plan, rep
resentatives of the preferred stock
holders and bondholders of the Amer
lean Tobacco Co., and constituent com
panes argued approval Of the division
OF the trust into four principal segre-
gated companies to be operated abso-
lutely independent of each other In
support of these interests appeared
sisted that the proposed re-organiza-
ton plan was a sincere one, and asked
that no hostile elements be permit
ted absolutely to destroy 1T. though it
might be subject to some amendment
calculated to protect the property
rights of citizens.
Independent manufacturers dealers
and producers of tobacco unanimously
n lice cd he pIo No
that it would not result in effectualiy
breaking up the trust and that 1t Is
shame to accept proposal to di-
vide the properties, control of which
still would be retained by the group
OF individuals now dominating the In
dustry. Louis d. Brandeis of Boston
made the principal argument against
| the proposal and sought to convince
the court that it would be impossible
TO bring about thereby a restoration
of the competitive system IN the trade.
| Attorney General Wfckersham, APP
Fearing with the special prosecuting
attorneys, J. McReynolds and Edwin
p. Grosvenor, will be heard, tomor-
rNw.
The answer of the attorney general
filed, today, did not express general
contained for the guidance of the
court many restrictions deemed neces-
sary for restoration of competition in
the tobacco business.
Maintaining that it was impossible
for the court to determine in advance
whether plan will accomplish elfec-
tive competition, the attorney general
requested that the right be reserved
~ m
court at any time within five years
for other relief upon showing that the
plan did not result in new condition
in harmony with the law.
Judges Lacombe, Ward, Cox and
Noyes. who are hearing the argu-
ments. took active part In the discus
sion by counsel for both sides. When
the arguments are concluded it is ex-
pected that the judges will take the
case under advisement for some time
before announcing decision.
New York, Oct. 30.-The answer Of
Attorney General Wickersham to the
plan of dissolution and reorganization
of the American Tobacco Company
and co-defendants to the governments
antitrust suit. was filed here today
in the circuit court of the United
States for the Southern District Of
New York.
After referring to the direction OF
the supreme court to restore COMPETE
tive condition, the attorney general
says:
obviously the effect of any plan OF
disintegration submitted to the con-
sideration of the court must be more
or less matter of conjecture, and 1t
is impossible for the court to deter
mine in advance whether or not plan
which proposes to restore competitive
conditions will actually accomplish
the purpose intended. Any decree as
pertaining and determining upon a
plan should therefore reserve to the
government the right, at any time
within five years from date of entry,
to apply to the court for other or fur
Their relief upon showing that, as a
matter of fact, such plan has not re-
suited in creating new condition
which shall be honestly in harmony
with and not repugnant to the law.
To that end, 8 we'll as for the other
purposes hereinafter expressed, each
and every of the new corporations
| proposed to be organized for the pur-
pose of carrying out the plan should
be brought in as party to this suit
in order TO be subject to the juris-
diction of the court and bound by its
decree"
The attorney general asks that
whatever plan be adopted, it be sub
ject to the following conditions, brief
ily stated:
The corporations among which the
properties and businesses in the COM
bination are TO be distributed for a
period of five years shall not have any
officers or directors in common.
These companies shall not have any
stock interest in each other.
They shall not employ the same
agencies for the purchase of leaf to-
bacco or other raw material. or for the
sale of tobacco or other products
They shall not retain or employ the
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