The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1911-12-05


~
hiclf ttiiE = ED By q Ne -. y ~
Il b selI ct conn 1ele1
q utinu y com on a.
- u iEa tfnnsfer ana pro Fata ellsLil.
fjSt1n b the New jersey 50 @
the foel held by g IN the 49, s..
cor tims TO ana agqonG - 8 & - =,
G and the cOtpofatjCns and lnul-
s d iand6nts were eD5Ofned from
or combining TO reseote
sTiSfiI monopoly. and MI agreements pc
tween the subsidiary CORPORA lions Issil.l-
fne 20 produce or being abnelE ~ = !.
/ vi6Ia lions 81. the .aet were ZEN ainesl-
I n fIie jtobncco case the couEsrtonna
4Iot Tire iudividuaI defendants. TWEEN
tJZ.T5tne q, NUM- her. had been enSaS ea'
h, 4 successfi1l onoFt 10 acquire COM
nlete dominion oYeFssthe NANNY etllre'
sale and distFtbuti0u OF tobacco IN splS
country and nbrnnd and that t!1ls -9 ~
been done by cOu1b lions, ma ele VIII ~
a purpose and erect 20 -stine COM cor etl-
ton. control prices ana ess.l o.tsn 2
monopoly. not only tn.tbe manu- ). ss ~.
OF tobacco. but also Of Tin toi4 anu 8
or,ce used in its manufacture a1dsso1
ifr orodi1cts OF cigars. cigarettes and
s71ItfGs. The tobacco suit presented q
IA. more complicated and difticult' case
'flla1 the Standard Oil suit for a decree
which would eRectunte the viii OF the
court md endsthe-yioIatiOn OF the star.
ute. There was here no single bold
IN, company: as IN the case OF the
standard oil,trust The main company
49, gti,e American Tobacco company.
a u1anufnctuFing selling and holding
company. The plan adopted to de-
stroy the combination and restore com
petition involved the redtVtstOn OF the
capital and plants OF the whole trust
I bet VVeel some OF the companies con
stIfntinG the trust and new companies
torRanfzed for the purposes OF the de-
! cree and ~made parties to It ana num-
berinG. new and old. fourteen
situation After ,Readjustnsnt.
| The American Tobacco company
| tolflJ, readjusted capital Se2.ooo.OOO'
the Liggett s. Meyers Tobacco company
new. capital $6I. 100000; the LOTT
lard company new. capital $4!.OOO'
loco. md the r. J. Reynolds Tobacco
| company Cold), capital ST,625.OOo. are
! cbiefIy 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 sso5 600 capital and the other OF
S4oO 600. The one snuff company is
divided into three companies. one Win
{ a conitaI Of $4,000, OOO. another with
! capital Of SSOOO.oOo and third with
v capital of SS,oOO.000 The Hcortce
!combanIes are two. one with q capttal
pf S5,75s,3OO and another with n capi-
tai fOf S2,0OoOO0. There is also the
British-American Tobacco company.
British corporation. doing business
I abroad with a capital OF $26tOoO,oOO.
70 rENn
with a capital Of $1.S0o.OOO. and the
of United Cigar Stores,
With a capital Of 100000.
/ Under this arrangement each OF the
! different kinds OF business will be dis.
| tribI1ted between two or more compa-
! MES with a 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 coun-
try is divided so that the present IN
dependent companies have 21-se per
cent, while the American Tobacco COM
pany will have 33.oS per cent. the Lig-
! Vett & Meyers zoos per cent. the Lorll-
! lard company 2oS2 per cent and the
! REYNOLDS company 2.6G per cent. The
! stock Of the other thirteen companies
| both preferred and common, has been
I taken from the QGIe0OanC AhGE1GSn
| Tobacco company and has been dis
trlbuted among its 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 it under the
| old organization. The ratio Of the pre-
! ferred stock to the. common was rs GS
| to 90 This Constitutes a 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 unlnwful dominion
Under the decree these defendants Will
hold amounts Of stock in the various
distributee companies ranging from Al
per cent as a maximum to 2S14 per
cent as a minimum. except in the case
Of one small company. the Porto Rican
Tobacco company, in which they will
hold 45 per cent The Twenty-Five in
| divdual defendants nre enjolned for
three years from buying any stock ex-
cept from each other. and the group Is
| thus prevented from extending its con-
troll during that period. All parties to
the suit and the new companies who
are made parties are enjoined perpet-