The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-05-30
BY Associated Press.

Washington May 29.-The American
Tobacco Company, its accessories, snb-
ordinate companies and corporations,
including the English corporation, were
held today by the supreme court of the
United States to be conspirators in a
combination and illegal under the
Sherman antitrust act. The court
sent the case back to the lower court
to hear further parties so as to ascer-
tain If new condition can be created
in harmony with the law. Harlan con-
CURED In part and dissented in part.
Associate Justice Harlan delivered a
vigorous dissent to a part of the court
decision in the tobacco case. although
he agreed that the American To acco
Company, its accessories and subsid-
siary corporations are members Of an
unlawful combination in violation of
the Sherman antitrust act. He first
took issue with the court for sending
the case back to the lower court, hold
ing he was not at all anxious to per-
petuate any new combination among
these companies which the court con-
cedes had exhibited a conscious
wrong.~
In the second place Harlan reiter-
ated his objections expressed In the
Standard Oil decision, to the adoption
Of q rule of reason" as the standard
for ascertaining what restraints are a.
violation of the Sherman act.
VICTORY FOR GOVERNMENT.
The decision is considered a sweep
ing victory for the government over
the So called tobacco trust" in that
the court directs the combination be
forbidden the privilege of interstate
of a receiver unless it disintesrates in
harmony" with the law within six or
at most, eight months. The action of
the court is considered more drastic
than ID the Standard Oil case.
The court held that both the first
and second sections of the Sherman
antitrust law had been violated and
that the company had restrained
wrongfully and unlawfully Interstate
commerce and attempted to monopolize
the tobacco business to the injury of
!. the public and it's competitors .
A touch of leniency was shown by
the court in allowing the various ele-
ments of the combination an oppor-
tunity for recreation under the super
vision Of the United States circuit
court of the southern district of New
York SO it may bring about new
condition which would be honestly in
harmony with and not repugnant to
the law"
RULE OF REASON.
The court reiterated its determina-
tion to follow the rule of reason" in
determining what restraints of trade
were in violation of the antitrust act.
1t is generally conceded tonight that
rule of reason" will prevail in the in
depreciation of the act until the per-
sonnel of the supreme court of the
United States is greatly changed
The opinion of the court was an
nounced by Chief Justice White, whose
opinion will be grouped in three parts:
a detailed staten nj of the history of
the case. in wSica ne iwelt upon what
he designated 'urdjsputed facts;
meaning Of the Sherman antitrust
law and its application to the case,
and the remedies to be applied.
Chief Justice White classified the
sixty five American corporate defend
ants In three groups, the American
Tobacco Company, the primary de-
fendants"; the American Snuff, Ameri-
can Stogie, McAndrews and Forbes,
and Conley Fail, accessory defendants.
The two English corporations and
twenty nine individual defendants,
headed by Jas. Duke, are not classified.
'Undisputed facts" divided into a
period of the organization of the old
American Tobacco Company in 1890
to the organization of the Continental
Tobacco Company in 1898. Taking up
the construction of the application of
the Sherman antitrust law. Chief
Justice White said II the law is ap-
plicable and adequate to afford relief
TO the enClre SlIuatlOn IL Is only De-
cause the law will be given a more
comprehensive application than had
been affixed to it in any previous de-
cision." He declared the obscurity
and the resulting uncertainty which
had enshrouded the Sherman anti trust
act had been. removed by the consid-
Grafton the court had given the law
in the Standard Oil case. He then
launched into the defense of rule of
reason" as laid down by the court in
that case. In considering the unusual
wrongful acts and combination the
court stated that from the beginning
It was demonstrated the purpose was
to acquire control of the tobacco trade
(Continued on Page Six)