The Fargo forum and daily republican., 1911-12-05

cent, while the American Tobacco COM
pany win have 33.0S per cent, the Lig-
gett & Meyers zoos per cent, the Loril-
lard company 22S2 per cent and the
Reynolds company 2.66 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 fits stockholders All
covenants restricting competition have
been declared null and further per-
| formance OF them has been enjoined.
| The preferred stock OF the different
companies has now been given voting
| power which was denied Il under the,
old organization. The ratio of the pre-
ferred stock to the common was as rs
to 40. This constitutes q 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 It's unlawful dominion.
Under the decree these defendants Will
hold amounts OF stock In the various
distrtbutee companies ranging from Al
| per cent as q maximum to 2SId per
cent as minimum. except In the case
Of one small company. the Porto Rican
Tobacco company. in which they win
hold 4B per cent. The twenty mine in.
dividual defendants are enjoined for
three years from buying any stock ex-
cept from each other, and the group Ii
thus prevented from extending its con-
troll during that period. All parties to
the suit and the new companies who
are made parties are enjcined perpet-
ually from in any way effecting any
combination between any OF the com
panies in violation Of the statute by
way Of resumption Of the old trust
Each OF the fourteen companies is en-.
| Joined from acquiring stock in any Of
the others. All these companies are
enjoined from having common direc-
tors or officers. or common buying or
selling agents. or common Offices, or
lending money to each other.
elze OF NS~ companlea
Objection was made by certain IN
dependent tobacco companies that this
settlement was unjust because it left
companies with very large capital In
active business and that the settle
ment that would be effective to put all
on an equality would be division Of
the capital and plant OF the trust into
small fractions In amount more near
ly equal to that Of each of the inde-
pendent companies. This contention
results from misunderstanding OF
the antitrust law and its purpose 1t
Is not intended thereby TO prevent the
accumulation Of large capital in bust
ness enterprises in which such a COM
bination can secure reduced cost of
| production. sale and distribution. It
Is directed against such an aggrega-
ton Of capital only when its purpose
Is that OF stiding competition. enhanc-
Ing or controlling prices and establish
ing a monopoly. If we shall have by
the decree defeated these purposes
ana restored competition between the
large units into which the capital and
plant have been divided we shall have
accomplished the useful purpose Of
the statute.
conhscaticn Not the Purpose Of che
| Statute.
It is not the Inirpose Of the statute
to ccrnscate the property and capital
OF the offending trusts Methods Of
punishment by fine or Imprisonment
Of the Individual offenders, by fine OF
the corporation or by forfeiture Of its
goods In transportation are provided.
but the proceeding in equity is spe-
cihc remedy to stop the operation of
the trust by injunction and prevent
the future use Of the plant and capital
in violation Of the statute.
Effectiveness Of Dseres.
venture TO say that not in the his
/ tory Of American law has a decree
more effective for such purpose been
entered by a court than that against
the tobacco trust AS Circuit Judge
Noyes said in his Judgment approving
| the decree:
The extent to- which Il has been
necessary to tear apart this cOmbina-
ton and force 1t into new FERNS with
the attendant burdens ought to demon
| strate that the federal antitrust statute
Is drastic statute which accomplishes
| effective results, which so long as IL
stands on the statute books must be
obeyed and which cannot be disobey-
cd without incurTing farreaching pen
alties. And, ON the other hand, the
successful reconstruction OF this or
ganiEation should teach that the effect
/ NJ anfoPNtne fIlfa afnfrfo Is nat AsN ID
stroy, but to reconstruct: not to de-
molish, but to recreate In accordance
with the conditions which the congress
has declared shall exist among the
people Of the United States"
comwoa Stock Ownership.
It has been assumed that the pres
| snt pro rata and common ownership in
Gil these companies by former stock
holders OF the trust would insure a
| continuance Of the same old single con-
rol Of all the companies into which
the trust has by decree been disinte-
| grated. This is erroneous and Is based
upon the assumed ineficacy and innoc-
nousness Of judicial injunctions. The
companies are enjoined from co-opera,
lion or combination; they have differ
snt managers. directors, purchasing
and sales agents. II all or many of
/ the numerous stockholders, reaching
into the thousands. attempt to secure
concerted action OF the companies with
| a view to the control OF the market
their number Is SO large that such an
attempt could not well be concealed
] - y a4a