Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-11-17
WILL NOT APPEAL
ANN Tobacco Co. Case to
U. S. Supreme Court.
Atty. Gen. Wickershdm Will AC-
cept Circuit Courts Decision.
New Method Advanced for Control
OF Big Corporations.

Washington, Nov. dissatisfied thai
the decree entered IN the circuit court
at New York. today, providing for the
Idisintregation of the American To-
bacco Co. into IA corporations VIII
terminate a monopoly and substitute
lactual competition instead. Attorney
General Wickersham will not appeal
the case to the supreme court of the
United States. He Will accept the
lcircuit courts decision although the
government possesses the right 10
carry the plan of dissolution to the
highest tribunal at any time within a
year The governments approval oil
the plan was made known by the at
ltorney general in IN official statement
ISSUED, today.
The size of SOM of the corpora
lions into which the company VIII be
separated constitutes no valid obJec-
| ton to the courts decree, in the ludg-
| ment of the attorney general.
The public at large will be more
lapt to benefit" ne declares, from
competition between a number of
large. solvent, well-organized COM
panes in strong hands. than from
| thr general decentralization of business
Ivtirh would ensae were the business
| to be distributed between Il large num-
| her Of small, weak organizations with
insufficient capital to maintain them
selves in active competition.
some of the representatives of the
sa-ealled independent retailers As
ISOLATION urged the distribution Of
line business among 20 corporations in
stead Of IA. The suggestion might as
well have been 80 OF 700. For the gov
ernmeut to have supported any such
contention would have undoubtedly
resulted in a receivership and enor-
nous and widespread injury to the
general business conditions of the
country" Regarding the contention
which he says was advanced that the
size of some of the companies was
greater than that Of any of the exist
| ing independents, IF attorney gener-
al says;
Nothing in the law requires. or, in
| the opinion of the attorney general.
| would Justify TIE government in TAX
| ing the position that 10 reduce mo-
napolstic combination to legal size,
no one of the Distribute concerns
Should be larger than the largest ex-
| sting independent concern
| The objection TO the dissolution
statement on the ground that the same
( body of shareholders would substan-
| TALLY control each of the separated
| companies are met, the attorney gen
| eral says, first. by comforting voting
rights which now are vested in the
cenmon stock alone upon the pre-
| ferred stockholders also; and second
ly by the restrictions upon the actions
of the respective corporations.
THE attorney general believes" con-
| tinues the statement, that this plan
with the restrictive provisions en-
| bodied in the decree will accomplish
a recreation of lawful conditions and
| being SO convinced he has opposed the
| efforts of outsiders to inject themselves
| into the situation, and to delay or
| prevent the carrying out of the plan.
| Under the impression that the mean
| ing of the opinion by the court was
| feeIeuded by the various discussions
| If it and was not generally under
| stood the attorney general EMBODIED
| in his statement synopsis o. the
terms of the decree. He said it con-
| tanned substantially all Of the requests
| made by the government except the
| enforced sale and distribution to out
| siders of the United Stores Co, and
| PERMISSION to the government TO apply
ut any time within five years to the
| court for relief based upon q show
| ing that competitive conditions nave
rot actually resulted from the opera
tiCns of the plan.
New York, Nov. 16-The United States
circuit court denied. today, the formal
petition of the National Cigar Leaf To-
bacco Association and the Cigar Manu-
| facturers' Association of America filed,
yesterday. for leave to intervene in the
governments dissolution suit against the
American Tobacco Co. The decision
which was not unexpected by counsel for
the so-called Independents, furnished a
definite point upon which they may APP
peal to the federal supreme court.
Felix II. Levy, one of the counsel in
charge of the fight against the circuit
courts approval of the dissolution plan,
said upon learning of the decision:
I'VE are already taking steps to con-
tinue the fight. This does not end the
matter by any means"
He declined to say. however, what the
next move of the independents would he.
A NEW METHOD