The Dolores star., 1911-12-08


Of stock In the various distributes COM
pAnies ranging from u per cent. - Z
maximum to IN per cent. ~ . minimum.
except In the case OF one small company.
the Porto Ricsn Tobacco company. In
which they will hold u per cent. The
twenty nine individual defendants are en-
Joined for three years from buying any
stock except from each other, and the
group II thus prevented from extending
IT. control during that period. All parties
to the suit. and the new companies who
are made parties, are enjoined perpetual-
" from In any way eKecting any COM
bination between any Of the companies
In violation Of the statute by
way OF resumption OF the old trust. Each
Of the fourteen companies II enjoined
from acquiring stock In any Of the others.
All these companies are enjoined from
having common directors or officers, or
common buying or selling agents. or COM
mon offices. or lending money to each
other.
Size Of New Companies.
Objection was made by certain indie
pendent tobacco compsni that this set
Element was unjust because II left CON-
panies with very large capital In active
business. and that the settlement that
would be effective to put all on an equal
ity woHd be q division Of the capital and
plant OF the trust into small fractions In
amount more nearly equal TO that Of each
Of the independent companies. This con-
tention results from a misunderstanding
OF the antitrust law and Its purpose.
II 10 not intended thereby to prevent the
accumulation Of large capital in business
- 800. ~ 49, -. - .nas,,a,,,n
81. go ,,...,s',,.,. a,rac,,,
$500, .,,,,. ~ .....,tor a, can,ta,
mi. ,shsn g.. $500. - IN, ~ .s,,,ny
cn. co., " s.nosa ~ oon,rni,,n.
49, .'.. .as'..,.,. ,onn,y -
=. ~. 4, n.v. d., ~. 49,. da,..s..t ,b...
r,,,rn... ia $1,000 con,ns,i,,on he
,~.sn ~. ,ar.. INIT. into which he can.
s..i "a go. h.s -. a,.,aad =.
.h.u So, ..'on,.,,.,.a a.. n.ssni nnr-
..- - ~ .,.....
Sonuseat'on MOI the purpose o. t"s
otatut0.
:, 4. -, a.. rnr,. a, an. .,.,,,. in
,ans...,o ,ha ,.nn.r,v "a ..,i,ai ~ The
s.G..s,-. $50. s.,sx..s. - r,ni.hman,
-" A.. q ,,,nr,.orrsn, ~ ,hs tnd,v,.uai
,x.". -, a. ~ ar c,rrs,r.s,c, ~
~. "ss,.,,,,.s - -. .an,,. ~ ,r.r.co.,..
~, - $1,000 49, ~. nrocsS.,,r. In
's'.s s - So. ~.
s.s....,. ~ 80. ~ ,,,,,,r,,,or .na
.r.v.r, ~ s,,.,,r. -. - IN man, an,
sp..,... ,,,a,.ss.. - ~. "s.tv,.
= ~ ~. a.. ~" s,...
venture to say that not In the history
y As - ~ g. I..os - S.s.sa.,
Iecuve TOT sucn vuIp rSs..u
~ couss s"s" s"ss ess"'s "'e
~s ~.
$500. .rS ccr,m"r o~n.r.hin IN ali
these companies by former stockholders
Of the trust would insure . continuance
Of the same old single control OF all the
into which the trust has by
decree been disintegrated. This 10 err
roneous and Ia based upon the assumed In
efficacy and innocuousness Of judicial In
functions, The companies are enjoined
from cooperation or combination: they
have different managers, directors. pur-
chasing and sales agents. II all or any
Of the numerous stockholders. reaching
Into the thousands, attempt 70 secure
concerted action Of the companies with
view to the control OF the market. their
number 10 90 large that such an attempt
could not well be concealed AND It's prime
movers and all Its participants would De
~ once subjec6 TO contempt proceedlnss
and imprisonment OF . summary chstac-
ter. The Immediate result OF the present
situation wiz necessarily DC actvuy os
all the companies under dinerent man
ayers ana then compeunon "ust ionoW,
or there VIII be acuvity oy one company
and STARVATION by another. Only snort
time VIII inevitably lead 10 . cnAnGe w
ownership OF the stock. a. al oppor.
tunity for continued cooperation must
disappear.
neveu,soe far 0soeat 81 the Anti. Trust
but now that the antitrust act In seen
TO be effective for the Accomplishment Of
the purpoas ., s snss' ",ca,.r we are e
for its repeal. II 10 said 20 BE- obstructive
Of business progress. to be an attempt TO
restore old fashioned methods Of de-
structive competition between ANAL unita
and To make Impossible those useful COM
b,nations Of capital and the reduction Of
the cost OF production that are essential
TO continued prosperity and normal
growth.
In the recent decisions the Supreme
cour, makes clear that there 10 nothing
In the statute which condemns combine.
lions NJ cnpita, or mere biRness Of plaut
orsanlsed 10 secure economy In produc-
ton and . REDUCTION Of lie cost. II 10 only
when The purpose or necessary effect Of
,hs orsnr,sat,on And maintenance Of the
comsinstion or the aggregation Of I'm
rrenss n. are the ssisiinr OF competition.
actual and potential. and the enhs netting
q prices and ss,as,,.n,ns = monopoly.