The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1911-11-02
HMoN ND. vA.-special.-

prevent
the United States courts from con-
firming the proposed plan for the re-
organization of the American Tobacco
Company, which, in its present form
has been judicially declared to be an
unlawful monopoly.
Permission has been granted Attor-
ney General Samuel w. Williams, OF
this State, Attorney General T. w.
Beckett, OF North Carolina, and At
torney General Frayser Lyon. of
South Carolina, to file a joint protest
against the plan now under considera-
ton.
This petition, which was filed today
In the United States Circuit Court for
the Southern District OF New York
will be argued next Saturday and il is
the present intention OF Judge Will
hams to have a say on that occasion.
But whether he does or not, the Joint
protest Of the three States will leave
the court in little doubt as to their
Wow OF the proposed reorganization
plan.
This document il nothing If not
outspoksn in the manner in which it
aSsaila the pending scheme of the mo-
Ropoly. 1t is openly charged that the
suggested plan OF reorganization
means only q change Of bookkeeping
ana viii in no way correct the evils
which heretofore have vexed the
Southern planters.
In its opening paragraphs the Pc
dtion calls attention to the fact that
North Carolina ranks second az q to-
bacco producing State and Virginia
third, while South Carolina is also &C
lively engaged in this industry.
I'm these States" says the protest
hundreds Of thousands of people Gull
tvate tobacco as their chief, IL not
their only, means of support and
these people directly, and all the other
people of the States named indirect
ly, are vitality interested and deeply
concerned in the dissolution of the
American Tobacco Company in ac-
cordance with the judgment OF the
Supreme Court Of the United States
rendered in this cause"
1t is further alleged that the now
hard-pressed octopus has arbitrarily
fixed the price of the weed, and that
q feeling that they were in a state 81
financial servitude" has engendered
much bitterness and discomfort in the
hearts Of the farmers.
The petition maintains that in this
matter the tobacco growers should re-
ceiVe first consideration. ITO the con-
sumer.' Cpi.yra dramatically says the pc
tition, tobacco is a luxury; to the
grower il Is a living. The StOckhold-
ers ana bOndholders invested their
funds in the securities of the concern
as matter OF choice. The tobacco
grower cultiVates tobacco as a mat
ter of necessity"
Talking of the situation this morn
ing, Attorney General Williams de-
scribed the American Tobacco Com
pany, in its present state as "a hy-
dra-headed monster" and he went on
to say that the reorganization plan
would do little towards abating the
evils laid at its doors He said the
proposed plan reminded him of "all
Gaul," which divided into three parts.
These parts, despite their division.
were pervaded by a spirit of unity,
which made them one in all their
fights. So il would be with the Amer
lean Tobacco Company in its new
form.
Judge Williams added that he and
his two associates were fighting for
the tobacco producers of the three
StateS-a constituency of 100000
who, up TO this time, had had no voice
Language of the Protest.
The protest, after a preamble set
ting forth the importance Of the to-
bacco industry TO the South. says:
That the plan submitted to this
court by the American Tobacco Com
pany does not have the merit of even
looking like dissolution of the COM
bination or a destruction of the mo-
nopoly. We earnestly protest that
said plan IL i'm no sense a comDIi-
premc Court OF the United States, but
tested by the rule of reason which the
Supreme Court invoked in the inter
probation of the law, il is plain that
the judgment of the court.
The one purpose of the bill in equity
MED in this cause and the one pur-
pose OF the decree obtained in answer
TO its prayer was TO restore the com
petition that had been destroyed The
plan of the American Tobacco Com
pany contributes nothing to this end.
1t turns loose no asset and no agency
by which IL now maintains its abso-
lutte dominion over the tobacco trade.
&c nrfle e.
unwillingneSs to loosen its grip on
the tobacco business is strikingly il
Illustrated in its refusal to give up one
or the least of its subsidiary cOmpa-
nies-E. L. Richardson, Jr., a. Co..
Inc, although that company has
from the inception of this suit petit
toned TO be allowed to do an indie
pendent business.
Mere Change of Bookkeeping.
The division of the company into
Tour or fourteen working organizations
each and every one of them domi-
mated and controlled by the present
common stockholders of the Ameri-
can Tobacco Company will effect a
change in the method of bookkeeping
and nothing more. Oneness of own
ership necessarily means oneness of
control and the plan submitted con-
tainS the same kind of dismemberment
that takes place when the hand di-
Vides into fingers. We submit that If
TIC SNlOShCS ldhSH III lnlS cause naU
disclosed the precise condition which
the tobacco company proposes now
to create, the findings of the court
would have been in no way different.
The combination would have been as
effective, the monopoly as complete,
and the violation of the law as clear
as under a single organization.
1t is automatic that business moves
along lines of self interest, and there
can be no real competition between
persons or corporations unless their
interests are antagonistic. The plan
proposed by the tobacco company
maintains n community of interest be-
tween all the companies it is pro-
posed to create and this makes real
competition between them impossible.
In its patent failure to separate into
independent entities, in the utter alb
sence of a serious effort to restore the
competition which has been destroyed,
the plan submitted by the American
Tobacco Company falls far short of
the primary and imperative require
ment of the court that complete and
efficacious effect shall be given to the
prohibitions of the statute and a con-
dition created which shall be hon
l..