The Birmingham age-herald., 1911-11-09
COURT APPROVES
 DISSOLUTION PLAN 0F TOBACCO TRUST
Litigation Begun Four Four Years Ago Is Near
 ing Completion
NO JUDGE REGARDS
 PLAN AS PERFECT
Feature of Decision Is That Dissolu- ton Should Be COnsummaSed
 Without Delay-Wicker-
 sham,s Plea Not Granted

New York, November s.-The litigation which the federal government began four and q half years ago to break up the American Tobacco company as nohop- oily in restraint of trade, approached the stage of completion today by judicial ae- ceptance, with a few notifications, or the much discussed plan which the To- bacco company itself drew up for als- solution of the combine, in accordance with a mandate of the United states supreme court.
 The decision of approval was filed py Judge Lacombe of the United States CIT cult court shortly after stock market hours this afternoon and supplementary opinions were filed by Judges Coke ana Moves, concurrng generally with Judge Lacombe. No one of the judges regarded the plan as perfect but all declared that the ideal was beyond attainment ana that as d practical, substantial comph- ance with the law, the plan, as shghtiy modified, appeared the best attainable.
 Each judge asserted his belief that the plan IS honest dllu that thNiS AS A'S tlon of the good faith of the authors Judge Ward, the fourth member Of the court who attended some of the con ferences and sat with his associates al the opening hearing filed no opinion. The features of the opinions ol Judges Lacombe, Moves and CoNe are that the dissolution should be cohsuii mated without delay; that the fequeS' of Attorney General Wickersham TOT reservation by the government o' right to apply for further or other re- lief within a period of i've years II the plan did not result in harmony with the law, Is declared not to be within the authority of the court to grant; that the court does enJoln Tor a period of three years the 29 lndi- vidual defendants in tffe suit from ac- ouiring any additional holdings in the companies into which the trust IS spllt and that the application by independ' 1 ents for dissolution of the United Cigor Stores company lay outside th' authority of the court, but that thi' did not preclude any action latel against inc cigar stores company as al Individual corporation.
 Independents To Appeal
 The announcement of the court ac.' cd was followed almost immediately b5 the declaration of counsel for severa | of the opposing independent tobacc, l companies that attempt would be maae l to have the decision removed by the United States supreme court.
 Judge Moves drew general moral from the case. In conclusion he said
 The extent to which it has been neces- sary to tear apart this combination and force it into new forms with the attend ant burdens, ought to demonstrate that the federal antitrust statute is a dras- tic statute which accomplished effective results. which so long as it stands on the statute books must be obeyed, and which cannot be disobeyed without incur ring fair penalties. And the successful reconstruction of this organization should teach that the effort of enforcing this statute against industrial combinations is not to destroy but to recreate in accord alce with the conditions which the Con- giess has declared shall exist among the people of the United States"
 In cement upon request Of the Attor- rey General for the reservation to the government of right to apply tosthe court at any time within five years for further or other relief, Judge Lacombe says:
 Wickersham's Plea Refused
 But neither in the supreme court man date nor in it's opinion is there any war rant for the conclusion that this court Is to prescribe the temporary terms or the model with the power to reassemple our selves or our survivors and successors and modify those terms while in the in- terim by the purchase or exchange of these bonds, upwards of 00,000,0o0 worth of property shall have changed hands irrevera ably The only function assigned to us is to consider any proposed plan which responsible parties engage to carry out and approve or reject it. in the event of rejection the only alternative being injunction. receivership and sale. The time limit fixed in the mandate. six months and possibly two more, precludes any other construction of its terms
 Judge Lacombe says that while the plan for disintegration is incorrect ly described as the proposed plan of the American Tobacco company, since that corporation and the other defend ants offer to carry 1t out. 1t should be remembered that in its present form the plan is the fruit of much discus sion during the open hearings. He says also the objection of Attorney General Wickersham were followed by mod dfications of the plan, some of it's most drastic provisions being inserted ir order to meet or avoid his criti- cisms. He says also mat provision should be made in carrying out the plan for keeping intact the books and recOfQS or lHe hiiltliCdi iopdSSo Soii pany, its present constituents and branches so that they would be avail able and subject to inspection the same as In other existing litigation.
 Judge Lacombe said as to the ob- 1ectlon which the Attorney General made to the plan of the company to re- tam in its treasury apout $l04,000,000 in addition to working capital to pay outstanding bonds when they ma tured.
 The attorney generals objections were or the ground that the possession of so much surplus capital was fraught with possibilities of evil use. Judge Lacombe pointed out that at recent conferences the defendants have met the criticism by proposal to buy up half of the outstani- ing bonds and cancel them, at a price in excess of their present value, thus en- surfing willing surrender of them by present holders, and of the other half. securities of the new companies would be offered on a basis of exchange which would insure acceptance of the offer
 Since the plan was filed, says Judge Lacombe, 'the market reports have given quotations of such bonds of the new com panies,' If when. While such reports are possibly not competent evidence in the trial of a cause, they seem to indicate that if the present plan be approved. a very brief period will suffice for the dis posal of probably all of the old bonds and the elimination from the treasury of the American Tobacco company If The securities required to make them good at maturity. Thus the menace of holding an