Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-05-30
A RECEIVER FOR
TOBACCO TRUST
SUPRIhIE COURT HOLDS TT is
LAW VIOLATION.
DISSOLUTION IN 6 MONTHS
Decree Considered Unusually Severe
Othcr Gases Decided by Body
Yesterday.

By Associated Press,
Washington. May 29.-The governs
mcut today won sweeping victory
over the so-called tobacco trust"
when the Supreme Court held that
the American Tobacco Company Is
violating the sherman antitrust law
and ordered that the company be for
hidden the privilege of interstate
commerce ana be placed in the hands
of "A receiver unless 1t disintcgrptes in
harmony with the law within six or.
at the most eight months. The court
Is declared to have dealt more dras-
ticaly with the tobacco trust than
with the Standard OH Company whose
dissolution was ordered two weeks
ago.
Not only both the first and second
clauses of the sherman antitrust law
have been violated, but the 50 called
wrongful and unlawful Interstate
commerce, In the eyes Of the court,
has attempted to monopolizc the to-
hacco business to the injury Of tho
public and Of its competitors.
while the decree is regarded as
unusually severe, at the same time
there was hint of lcniency In its not
making the cmbination and outlaw.
The various elements of the COM
hination are to be given an opportun-
ity under the supervision of the Unit
ed States circuit court for the South
ern District of New York for re-cre-
alton that they may he brought
about by conditions that may be in
IA.
the law"
The opinion of the court was an
nounced by chief Justice White who
read the opinion in the Standard OIL
case. The entire courts agree that the
combination violated the sherman
antitrust law, but Justice Harlan dis
sented from the repeated interpreta-
tion of the sherman law In so far
as the application of the rule Of rea-
son" in determining what restraint
OF trade was forbidden by that act.
Justice Harlan also took issue with
the rest OF the court as to the re-
organization Of the tobacco compa-
nts, saying that he had found nothing
In the record that made him at all
anxious to perpctuate any combina-
| tion among these companies which at
all times exhibited a conscious wrong
| dolngs.
chief Justice White had his opinion
grouped: First. he gave a detailed
statement of the history Of the case.
and dwclt upon what he designated
as the settled facts" next he took
up the sherman antitrust law and
its application TO the oasei and, lastly.
he considered the remedies to be ap-
piled.
At the outset he classified the G5
corporate defendants into thre groups
/ The American Tobacco Company, be-
cause Of It's" dominant relation to tho
| subject matter Of the controversy"
was designated as the primary de-
fendant The American Trust Com
| pany the American Cigar Company,
the American Stogle Company, the
MacAndrcws and Forbes Company.
and the Conley Foil Company were
named as accessory defendants
Unlike the Standard oil Company
which made no motion today for
rchearing, William r. Curtain. coun-
sci for the Tobacco Company asked
| the court for leave to present a petit
tion and to stay the issuance OF
mandate of the court for thirty days,
which was granted
Shortly after, the court adjourned
until the October term.
The American Tobacco compora-
tjons were made the tnrgct Of the Sec
ond big trust prosecution Of recent
years Th' first was the Standard
. ON Because the testimony taken In
the tobacco case was not so eXtcn-
/ siyc as that IN the Standard on. tho
/ two cases were before the Supreme
/ Court for consideration at the Same
time.
The attempt Of the government TO
dissolve the tobacco corporation as
violating the sherman antitrust law
took shape 1907 In that year
petition was filed In the United states
/ Circuit Cour at New York The gov
crnmcnt asked that the American To-
ba,co Company lts, officers drcc-
/ tors and affiliated corporations be
pre-, cnted q Il cnioiued from restrain
] INK ana UpU'I'I"lNh 'NHlHl'l'N III
/ tobacco.
The restraints and the monopollos
ALLEGED boy the government were said
to have been obtained by an intricate
system Of corporate organization IL
began In 1890, when the first Ameri-
can Tobacco Company was or5anizcd.
The now company took over the bua-
mess Of five Independent cigarette
concerns.
In 1898, the Continental Tobacco
Company was Incorporated to tako
over the pl',, tobacco business Of tho
American TDracco Company and that
Of five Independent plug manufac-
turers
In i900 the American Snun Com
pany was Incorporated to take over
the snun b siness OF the American
Tobacco Company of the Continen-
tai Tobacco Company and Of two
other iudcpcndent manufacturers
In 1901, tie American Cigar Com
pany was Incorporated to take over
Continued on page wo.)