New-York tribune., 1911-10-21
TO FIGHT TOBACCO PLAN
Three States Will Ask Leave To-
day to File Objections.
ALL-OAY CONFERENCE HELD
T. W. Birkett Suggests Method
of Preventing Community OF
Interests Now Existing.

After a long conference yesterday the
attorneys general Of North Carolina, Vir-
ginia and South Carolina decided TO file
petition this morning in the United states
Circuit Court. asking leave 20 submit their
objections 10 the reorganization plan of the
American Tobacco Company
Samuel W. Williams. Attorney General
Of Virginia. arrived here yesterday morn
ing and Immediately went into conference
with T. ". Beckett. Attorney General OF
North Carolina, sand J. F. Lyon, Attorney
General Of South Carolina. who have been
in this city since Thursday studying the
plan OF the Tobacco Trust.
We have reached the conclusion that
the plan OF dissolution proposed by the
American Tobacco Company IS not sub
stantial compliance with the decree Of the
Supreme Court" said Mr.. Beckett last
night. acting as spokesman for his col
leagues. I'VE believe that this plan' II
adopted by the court would make ths
governments victory in the Tobacco Trust
case A barren one. and as matter Of
fact would annul all the good thus far
achieved through the enforcement Of the
antitrust act.
The Fundamental defect Of the proposed
plan is that it leaves the control Of the
business where IL has been hitherto. The
fact that a number Of companies are 70
ta created out Of the one now existing
does not mean that competition will he re-
stored The same interests will control al
the companies. and there can be no com
petition where there is no antagonism of
interests This plan would Certainly OFFER
no relief 10 the oppressed tobacco grow
ers"
,rbA sorthe-, attorneys general began
last night m draw ND objections. confident
that the court would accept them. The
document. they said. might not be ready
until next week. though this would not
detain them in the city beyond to-day.
The protest they intmated, would nor
merely contain objections, but would also
suggest dissolution in a form that would
prove acceptable TO them.
The main objection being against CON
tiruance Of control by the same indivia-
usl--that IS. the twenty-nine tndividual
defendants I'm the Tobacco case-the south
ern attorneys general said they would de-
vote much space 10 that phase Of the qHes-
tfor They suggested that quite easy
reradv Of this defect could be found in
an ARRANGEMENT for the distribution of
s+ocx In the companies 70 he created hy
which the interests cf the tVenty-nine in
divfauaIs could he separated without re
cefyership or injury 10 their property.
Mr. Beckett said that this could he ac-
cor7rlished by an exchange Of the com
%. r'3tFra
many for stock I'm the new companies IN
such manner that no individual could
hold am interest in more than one new
company.
Instead NJ permitting each holder of
common stock % exchange IL for common
stock I'm an new companies In equal shares
each of the individual defendants should
get the equivalent for his present holdings
I'm stock of one new company only, thus
assuring that no further community ~ in
te-ests could exist between these men.
The independent Tobacco salesmen's As
eoclstfou of America held meeting last
night ~ Terrace Garden In protest against
the -eorca nizstion plan of the American
Tobacco Comparv. The chairman de
scrihad tho situation as extremely serious
iraqruch as the field n tho INDEPENDENT
salesmen was being narrowed more and
more rv the trust. and said that unless
different plan for the dissolution Of the
American Tobacco Company was forced
b,- the court no relief could he expected.
Felix n. Levy. who rs counsel for the
association. spoke about tho plan and out
lined the action that would be taken by
the independents 20 oppose IL.