New-York tribune., 1911-10-02
TOBACCO TRUST WILL
FILE PLAN IN court
Conferences Between Federal
Officials and Trust Lawyers
Threatened Deadlock.
LONG LITIGATION PROBABLE
Independents May Insist on
Trust Selling Out, but Inter
ests Back of It Wish to
Retain Control.

The tentative plan for the reorganization
OF the American Tobacco Company, which
Is being prepared by the attorneys for the
trust. viii be submitted toward the end
of this week in a petition 10 the United
States Circuit Court. This plan, 1t was
learned yesterday from an authoritative
source has not been approved by the rep
resentatives Of the government. who It Is
expected. Will file their objections to II at
time not yet decided upon.
The story published in The Tribune on
Monday last that the conferences between
federal judges, government officials and
representatives OF the Tobacco Trust had
not been productive OF definite plan was
confirmed Yesterday. when il was learned
that the steps now 70 be taken were sug-
Cested by one Of the judges in order 70 put
an end to fruitess conferences that were
approaching an absolute deadlock
The tactics adopted by the representa-
tives OF the large interests behind the To-
bacco Trust are said 10 resemble closely
. horse deal in which the seller demands
high price az the start. knowing that he
viii be beaten down. The American To-
bacco Company offered a plan which, in
the eyes Of independents, must appear
virtual continuation OF its present mo-
nopoly. and II intends TO drive hard bar
gain with the government TO secure for
the dominating interests all the possible
advantages il can obtain in the struggle
for the preservation Of its power over the
industry.
Trust Lawyers Do Talking.
Attorney General wickersham and James
c. McReyuolds, Special Assistant Attorney
General who represented the government
IT s1 the five conferences. are said TO have
absolutely refrained from making sugges
tions. leaving all the talking 70 the attor-
news for the Tobacco Trust. and particu-
larly Lewis Cass Ledysrd. who has been
The spokesman on these occasions. When
Il became apparent that the American To-
bacco Company would keep up these tao
tics. Judge Laconbe is said 70 have sug-
gested that the company put its plan on
record in a petition TO the court, so the
government might file its objections in the
same manner and the case receive an &C
tual start.
The plan is said 70 provide for a dissolu-
ton OF the Tobacco Trust into at least
three large companies which In turn are
10 be holding companies Of the smaller or
Esnizations absorbed into the trust in the
course Of time. The original American
Tobacco Company is 10 retain sufficient
properties 10 take care Of the bonds Of the
American Tobacco Company, which has
been pronounced a trust, when they ma
ture fifty years hence. The other COM
paries are 70 be indemnifed for this by
cash held in the treasury Of the trust,
which is said 20 amount 20 $70,0oo,o00.
The status OF the United Cigar stores
Company is said TO have been considered
very little The attorneys for the Ameri-
can Tobacco Company left the matter open
10 be discussed and planned later on, when
the general plan Of reorganization has pro-
Eressed 20 a more definite formation.
Long Litigation Possible.
The possibilities OF a long-drawn-out legal
battle over an issue that hiss been already
before the Supreme Court were again point
Cd out yesterday. It was said that after the
Ilan had been filed IL would be apparent
that only the highest court could dispose
Of the antagonistic claims that would be
set I'D from various sources.
If the Circuit Court should approve any
ulan for the reorganization repugnant to
the government. the Department Of Justice
could without difficulty appeal 10 the Sn-
preme Court on the ground that the de-
cree dissoIving the trust had not been com
IN piled with.
Independent interests are carefully watch
. ing the proceedings. and IL is known that
they will demand a return 10 competitive
conditions and protection OF their intel
ests under the plan which viii have 10 be
recognized il an appeal 10 the Supreme
Court on their part Is TO be avoided.
And the Tobacco Trust itself may again
resort 10 carrying it's case before the high
cst tribunal If tho plans submitted by its
attorneys should be rejected by the Circuit
court. This could be done. # was said, on
the ground that the lower court was un-
necessarily injuring private interests.
Certain independent interests have prac-
ticallv arrived at the conclusion that the
case ought 10 return TO the Supreme Court
FOR final disposition
Want Sherman Law Construed.
They say that the country wants con-
else construction OF the Sherman antitrust
law. and that a definite plan for the dis
solution OF the Tobacco Trust and re-
organization worked out under the direct
supervision Of the highest court would es-
tablish beyond further doubt how large
business enterprises should be conducted.
III is impossible 10 say al this moment
what the outcome OF this whole matter will
he" said a. man yesterday who has con-
siderable interests 20 protect "but when
tho plan of the American Tobacco Company
g. fled J am certain that II viii arouse op-
position from many sources. and that pub
lic opinion will come strongly IN support
of the interests opposed 20 the trust.
From what ] know about the plan n is
simply an attempt 70 continue monopollstc
powers under disguise o. several COM
ranies, and ] don't sec 2 possibility Of haV-
Ing the government agree TO such plan.
The American Tobacco Company will have
10 come down considerably iu its indirect
demands and. whatever the ultimate out
come may be- the final plan viii not re-
semble very much the one they intend 30
submit next week
1T has been suggested from independent
sources that the American Tobacco Com
pany should dissolve completely by selling
out its assets and ceasing 10 exist, but such
"a suggestion has been fatty rejected by the
powerful interests behind the trust who arc
trying to preserve their control over tie
tobacco industry.
WIFE SHOT; HUSBAND HELD