Omaha daily bee., 1911-10-31
GOVERNMENT FILES ITS BRIE
1t Says Separation Of New Compani,
Must Be Complete.
OBJECTION TO JOINT OFFICER
There Must Also Be No Joint Off
GERS or Joint Employees,
LEDYARD OPENS FOR CoMPAN
lie NppruVcd-Attorncy for Two
Associations OF BOndhUIdcra
Make similar Pleas,

NEW YORK. oct. 3l.-Bcforo "a notabl
gathering oc distinguished counsel IN th
United States circuit court for the south
ern district of New York hearings bega
today to dovise somo plan of dtssolutiu
and reorganization Of the Tobacco trus
ordered by the supreme court OF IN
United states.
Attorney General Wlckersham filed th
governments answer 60 the reorganlaa
tion plan proposed by tho American ro
bacco company and co-defendnnts In IN
antitrust suit
sitting on the bench were Judges l.
Combe, Coke, Word and Noyes, At tn
outset Judge IRcombe announced tina
the American Tobacco company as pro
ponents of the dissolution plan wouh
first he heard, Lewis Case Ledyard a
counsel for the defendant companies
making the opening statement.
Following the opening representative
OF the groups Of bondholders and outsld
interests win be heard Then the gov
ernmeut will be heard
brief of Government FILED.
Tho attorney general, after referring
to the directions OF the supreme court 4
restore competitive conditions, says:
obviously the effect OF any plan O.
disntegratlon submitted to the consdera
! ton OF the court must be more or less
matter OF conjecture. and II Is impossible
for the court TO determine In advance
whether or not plan which proposed t.
restore competitive condition will aotu
any accomplish tho purpose intended
Any decree asoertalning and determining
| ghnuld thaEafnrn 4
the government the right, at any tim,
within five years from date OF entry, tt
apply to the court for other or further
relief upon showing that, as a matter OF
fact, sucn plan has not resulted Ia Great,
ing a new condition which shall be hon
ostly In harmony with and not repugnani
20 the law. To that end. as well as fol
the other purposes hereinafter expressed
each and every one OF the new corpora
tions proposed TO be organized for thu
purpose OF carrying out the plan shoulS
be brought In as a party TO this suit IL
order TO be subjected to the Jurisdiction
OF the court and bound by it's decree"
Certain Conditions Suggested.
The attorney general asks that what
ever plan be adopted, Il be subject to the
following conditions, briefly stated:
The corporations among which III,
properties and businesses IN the com
blnaton are to be distributed for a perloI
OF five years shall not have any officer
| or directors in common.
These companies shall not have an!
stock interest In each other
They shall not employe the sam
agencies for the purchase OF leaf tobacc'
or other raw materials, or for the sale o
tobacco or other products.
They shall not retain or employ tn
same clerical or other organization, o
occupy the same office or offices.
No one OF thom shall hold capital stool
In any other corporation, any part o
whose stock is also held by any OF tn
other corporations, among which tn
properties OF tho combination are dis
tributed.
ITO the end that the twenty-nine indI
vidual defendants in this suit" the al
torney general continues. shall not in
crease their control over any OF the cor
poratlons among which the properties an
businesses now in the combination ar
10 be distributed, pursuant to the plaI
that such defendants be severally en-
Joined them, at any timo within five year
from the date OF the decree. acquirin
directly or indirectly, the legal or equii
able ownership Of any amount Of stock /
any one OF said corporations in additio
to the amounts which they would respect
lively hold IL and when the plan sha
have been carried out as proposed
The further suggestions of the govern
ment included the following:
That. in the distribution OF the proper
ties and businesses now held iu the con
blnatiOn pursuant 10 the plan OF disintS
grafton, the corporation shall be allowe
to acquire property, tangible or intang
, BILE, which would invest 1t with as muc
as 40 per cent IN volume or In value {
any particular line Of the tobacco bus
ness.
That all covenants IN any way restrict
, ing the right OF any company or IND
yidual In the combination TO buy, mani
facture or sell tobacco or its products
should be rescinded by the affirmatiy
action OF the respective parties therei
! who are parties to this suit.
That the action terminating covenant
be amplified 80 as to include like actio
{ with respect TO all covenants not onl
concerning the tobacco business, but an
other business which II In any way Ell
braccd in the corporation.
That the stock OF the United Cigs
Stores company be sold and distribute
; 10 parties other than the tWenty-nine IN
dividual defendants or others OF the con
! mon stockholders Of the American Ii
bacco company. to the end that the col