The St. Lucie County tribune. (Fort Pierce, St. Lucie County, Fla.) 1905-1920, 1911-12-08
MESSAGE OF
IHf president.
Continued from page q

company (o'd). capltal S''525OOO, are
.bleay engaged in the manufacture
and sale Of chewing and smoking to.
socco and cigars. The former one tin
,oI company is divided into two. one
- 5000 capital and the other of
.Ioo0OO The one snuff company is
a,rided into three companies. one with
oanital Of S15,000.WO. another with n
aonitol of SS.000.000 and a third with
copltal of $S.000,00O The licorlcc
.ompanlcs are two, one with capital
~ $500 and another with capi.
AL of S2.OOO00O. There is also the
british. American Tobacco company. Il
british corporation. doing business
abroad with capital of S2G.O00,O0O
mo Porto Rican Tobacco company.
ulth capital of S1.S00,00O. and the
crporatlon Of United Cigar Stores
with capital Of So,000O00.
Under this arrangement each of the
different kinds of business will be dis
rjbuted between two or more compa
Mos with division Of the prominent
brands In the same tobacco products,
10 as to make competition not only
pWsble. but necessary. Thus the
smoking tobacco business of the coun.
nv Is divided so that the present in.
lependent companies have 2l.3o per
pnt. while the American Tobacco com
muy will have 33.0S per cent, the Liz
nett & Meyers zoos per cent. the IOril
lard company 22.S2 per cent and the
Reymds company 2.GG per cent. The
,iock of the other thirteen companies.
both preferred and common. has been
pken from the defendant American
Tobacco company and has been dis
trIbuted among its stockholders All
covenants restricting competition have
been declared null and further per.
forluance Of them has been enjoined
The preferred stock Of the different
companies has now been given voting
power which was denied II under the
Old organization. The ratio Of the pre-
ierrel stock to the common was as IS
10 10. This constitutes very decided
change in the character Of the owner.
ship and control Of each company.
In the original suit there were TWEEN.
gnne defendants. who were charged
With being the cOnsDiratOrs through
whom the illegal combination acquired
nod exercised its unlawful dominion.
Under the decree these defendants will
bold amounts of stock in the vnlfor,
dstrbutee companies ranging from 4
per cent as maximum to 2Sl, per
cent as minimum. except in the case
one small company. the Porto l'iran
Tobacco company. in which they will
bold % per cent The twenty.nine IN
dvidual defendants are eujoinrd for
lnree years from buying any stock cv'
Hpt from each other. and the gro'lD Is
thus prevented from extending its CON
tOl during that period All parties 10
ne suit and the new companies who
're made parties are enjOinrd p"rpet-
aly from in any way effecting nny
@mblnation between any nf the com
NnleS In violation Of the statntc ny
way Of resumption Of the old trust.
zach OF the fourteen companies is an
Nmed from acquiring stock in any Of
zoe others. All these companies are
alolned from having common dir"c'
WS or officers. or common buying ar
slllng agents. or common ott'c"s. or
ending money to each other.
II Size Of New Companies
objection was made ny certain in
~peldent tobacco companies that this
Ea'eMent was unjust l""arSn II irtt
~upanes with very large rnpitnl IN
Fuve business aud that the S,Itl"
@nt that would he effective to pat mi
wan equality would hn II division "i
capital and plant OF the trust mt"
wall fractions In amount NOR" neal
' equal to that Of each nj tho indie
t"ieht companies. This contention
'HuNs from Il MISUNDERSTANDING OF
ahtl'truSt law and its purpose II
aol Intended thereby to prevent the
stimulation of lnrgo capital in buNi
s~ enterprises in which such II rom
~adllOn can secure reduced cost Of
swucuon. sale and distribution l. /
urected against such IN agcr"ga /
~ OF capital only when its purpose
"@t or sitting competition. onhanr |
~ controlling prices and establish
40 monopoly. IF we shall hav" II!
deree defeated these purposes
restored competition between the
- units into which the capital ana /
sul nave been divided we shall have !
sonpllshed the useful purpose Of
= statute.
"seat'on Not the Purpnse Of thu
Statute.
~ not the purpose Of the statute |
.hnscate the property and capital