Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-11-11
COURT APPROVAL
OF TOBACCO Plan
LITIGATION TO BUST TRUST AP'
PRoACHEs COMPLETION AFTER
FOUR YEARS., r.
SCHEME NOT PERFECT
Judges Declare That Company's A..
rangement for Dissolution Is Best
One AttainabIe Considering
Seriousness Of Problem.

New York, Nov. 1.-THE litigatio
which the federal government bega
J four and half years ago to brea
up the American Tobacco compan
as a monopoly in restraint of trade
approached the stage of completto
by judicial acceptance, with
few notifications, CT the much-dis
! cussed plan which the tobacco CON
pany drew up for dissolution of tn
combine in accordance with a mandat
Of the United States supreme court.
| The decision Of approval was file
by Judge Lacombe, of the Unite
States circuit court shortly after tn
stock market hours yesterday after
noon and supplementary opinions wer
filed by Judges Coke and Noyes, con
curing generally with Judge Ian
combe. No one of the judges regard
ed the plan as perfect, but all declar
ed that the idea was beyond attain
ment and that as a practical, substan
tial compliance with the law, the plan
as slightly modified, appeared the bes
attainable.
Judge Ward filed no opinion.
To End Present Session.
The features of the opinions ARK
that the dissolution should be con
summated without delay; the denia
| Of the request of Attorney General
Wickersham for the reservation by
the government of right to apply fol
further or other relief within period
Of five years if the plan did not result
in harmony with the law; that the
court does not enjoin for a, period OF
three years the twenty -nine individual
defendants in the suit from acquir'
ing any additional holdings in the
companys into which the trust is split
and that the application made by in.
dependents for dissolution of the
United Cigar stores lay outside the
authority Of the court, but that this
did not preclude independent action
later against the cigar stores company
as an individual corporation.
The announcement of the courts
action was followed almost imme'
diately by the declaration Of counsel
for several of the opposing tobacco In.
wI,uld be made to have the decision
reviewed by the United States SUI
preme court.
Answers Wickersham's Objections.
On the attorney generals objections
that the possession of so much sur
plus capital was fraught with possible
tiles of evil use, Judge Lacombe
pointed out that at recent conferences
the defendants have met the criticism
by proposal to buy up half the of out
standing bonds, and cancel them, at a
price in excess of their present value.
thus ensuring willing surrender OF
them by present holders, and for the
other half securities of the new com
panies would be offered on basis OF
exchange which would ensure accept
ance Of the offer.
Regarding other plans Of dissolution
Judge Lacombe points out that since
the circuit court has no authority tc
enforce any plan for readjustment
, without the cooperation of the own
ers of the property, it would be q
sheer waste Of time, therefore, to con
| slider any plan radically different from
those now before use; if we find this
plan would not create the condition de
| fined in the opinion of the supreme
court, or If such modification as We
may require as a condition to giving
our approval, are not accepted by the
defendants, We must obey the man
date of the court, or seize the property
and sell 1t at public auction"
Power Of Court Limited.
Referring to the proposed restric
ton enjoining the twenty-nine indi
vidual defendants from increasing
their stock holdings in the re-createe
corporations within Ave years. which
the attorney general said during the
argument he would be willing to re
duce to three years. Judge Lacomb<
says this change seems desirable be
cause it would result in more rapic
distribution Of present holdings. Judge
Lacombe says that the court has M
power to direct that the stocko OF The
United Cigar stores company be sole
ard distributed to parties other thar
the Twenty-Five individual defendant
or others Of the common stockholders
adding that nowhere is there authority
for the proposition that the court may
seize property Of private persons, wht
may have offended against the statute
and sell it under conditions which
would preclude the owner from bidding
at the sale. Other requests of the var
ious directors, Judge Lacombe finds
are practically all covered by those o.
the attorney general, or were disposed
| of in the discussion NJ the plan