Omaha daily bee., 1911-01-02
ANTITRUST FIGHT RENEWED
Cases Against Standard Oil and
Tobacco Combine to Be Pushed.
TO BE TAKEN UP FOR SECOND TIME
suit Against standard OF Attracts
Most Attention, Although ~ IL
10 re Argued After the
Tobacco Case.


WASHINGTON, Jan. PROSECUTIONS by
the government designed to accomplish
the dissolution Of STANDARD Oil" and of
the American Tobacco organizations, en-
bodying the greatest ANTITRUST" fight Of
the generation. will be taken up for the
second time by the supreme court Of the
United States at the beginning of its work
for the new year, Continuing its consid-
Grafton of affairs Of government, the court
will Immediately afterwards give its at
tention to the constitutionaHty Of the cor
poration tax provisions of the Payne-Ald-
rich tariff act.
All three cases attracted worldwide at
tention when first presented to the court
about a year ago with the object of pro-
curing consideration by full bench, they
were set for reargument on January g.
Intervening cases viii fause delay until
probably January 5. when II is believed the
arguments in the Tobacco case will begin
The Standard Oil and the corporation tax
arguments will follow. About three days
will be required for each.
The Standard Oil and Tobacco cases put
the Sherman antitrust law to the most
crucial test to which II has been subjected
during the twenty years of it's existence
the power OF the federal government over
corporations. The contention has been
made that IL the Standard OIL and the
Tobacco organizations are dissolved the
government will be forced to license cor
porations in order to allow legitimate busi-
ness to be carried on. The corporation tax
decision may define the power of the fed
eraI government over corporations so as
I.or lei,
tion. incidentally. about s25.OOO,OOO an
nually in taxes depend upon the decision.
on suit Most Important.
Although the Tobacco case is to be ar
gued first the Standard Oil suit has at
tracted more attention. Attorney General
wickersham has referred to the Standard
Oil case as probably the most important
that ever came before the court.
The Standard OIL suit was instituted in
1906 in the circuit court Of the United States
of the Eastern judicial district OF Missouri
The federal government was the complain
ing party. II claimed that the Standard on
company of New Jersey, as a holding COM
pany, acquired since 1899 and held by direct
stock ownership, sixty-five companies.
These sixty-five 1t was alleged owned the
stock of forty-nine other companies max
ing a total of ia companies. The govern
ment asked that this organization be dis
solved under the Sherman antitrust law.
A year was taken by the four judges in
the circuit court TO pass on the case. By
unanimous agreement decree was entered
by the court dssolving the organization
both because It was in restraint Of inter
state commerce" and because IL was at
| tempting to monopolize." Before the de-
\ al ba
/ case TO the supreme court
The tobacco case was instituted in 1907
in the circuit court of the United states
for the Southern district OF New York. The
/ government here, too. was the complaining
party Allies in the various branches OF the
tobacco business, with combined assets
OF more than 500. .OOOO 900, constituted the or
ganization which the government sought 10
have the court dissolve.
The four Judges each rendered separate
opinions In the tobacco case, but three or
them united in a decree, holding many OF
the corporations had entered into a COM
binatlon I'm restraint OF trade In violation
OF the first section Of the Sherman anti
trust act These three decreed the disso-
luton Of this combination. other corpora
lions including the United Cigar stores
company the Imperial Tobacco company
and the British-American Tobacco company
we're found not 70 be In the combination,
None were held 20 be "monopolizing' In
violation OF the second section OF the
sherman antitrust Law.
Meaning of Three words.
The application of the sherman anti
/ trust law 10 these two organizations I'm
wolves not only an Investigation into the
Z facts. but includes au Interpretation nf
4 the law itself The principal uncertainties
I in regard 20 the law cluster around three
words ln the statute These words form the
/ basis of three questions. What r. com
merceg' what Is restraint of trade or
commerce? and what is % 90 'monopulizef
/ Around what O. commerce. the pEin-
cinal nrht IN the tobacco case probably
I is 10 be- found The commerce which the
Z government claims is being restrained and
I monopolzed is not commerce. according "a
the tobacco attorneys. n is nothing more
than the manufacturs of an article which