The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-31
PLEAD W|THCOURT
TO APPROVE PLAN
Attorneys for Tobacco
Trust Urge It's
Honesty.
ANSWER FILED
BY WICKERSHAM
Acknowledgement Does Not con-
denim Dissolution Scheme, but
Deems Many Restrictions
Necessary to Assure Real
Compliance With Man
date of Supreme Court.

New York. October 3o.--The PR
posed plan for reorganization OF
Tobacco Trust submitted Dy the Al
lean Tobacco Company and codefe
ants to the governments antitr,
suit. was both praised and condemn
to-day before the Circuit Court judg,
of the United States for the SoutheI
District of New York pJ
After Attorney General Wickershent
had filed the governments answer to
the plan, counsel for the defendants 4
pleaded with the court to accept the
dissolution proposal. Lewis Cass LedS
yard. arguing for the defendants. In
sisted that 1t was an honest plan to
comply with the requirements In the
mandate of the Suprem Court for a
reorganization that Will restore COM
petition In compliance with the terms
of the Sherman antitrust law,
Urge Courts Approval.
Supporting the plan, representatives
OF tho preferred stockholders and
bondholders OF the American Tobacco
and constituent companies. urged APP
prevail of the division OF the trust into
four principal segregated companies.
to be operated absolutely independent
of each other. In support of these in
terests there appeared Joseph III.
Choate and others. who insisted that
one. and pleaded that no hostile ele-
ments be permitted to destroy It,
though 1t might he subject to some
amendment calculated to assure pro-
lection to the property rights of cit
iaens.
Independent manufacturers. dealer
and producers of tobacco unanimously
disapproved the plan on the ground
that II would not result in cffectually
breaking up the trust" and that 1t,
| is a sham proposal to divide the prop
| critics. control of which still would BIO
| retained by the group OF indiyiduala
| now dominating the industry Louis
-. Brandeis. of Boston, made the prin-.
cipal argument against the proposal,
and sought to convince the court that
1t would be impossible to bring about
thereby restoration of the competi-
tive system in the trade.
Opposition Not General.
Attorney General Wickersham, APP
pearing with the special prosecuting
attorneys. !. c. McReynolds and Edwin
r. Cirosvenor. will be heard tomorrow.
The answer of the Attorney General,
filed to-day. did not express general
opposition TO the dissolution plan. but
contained for the guidance of the court
many restrictions deemed necessary to
assure restoration OF competition In
the tobacco industry.
Creation OF Il new COnultlOH, huh-
cstly In harmony with and not repus-
nant to the law" is insisted upon by
Attorney General Wickersham.
The answer urged that any dis
Indignation plan accepted be subject
to revision within five years, and skcds
the court to grant Il permanent tn-r
junction against each of the defend
ants. their officers. employees. ETC., re-
straining them from continuing or
carrying into further effect the com
bnation adjudged Illegal by the gu.
premc Court"
After referring to the directions Of
the Supreme Court that competitive
conditions in the tobacco Industry be
restored. the Acknowledgement said:
obviously the effect of any plan OF
disintegratio submitted to the con-
sideration of the court must be moro
or less n matter OF conjecture, and it
is impossible for the court to deter
mine in advance whether not a
plan which proposes to restore com
petitive conditions will actually ac-
complish the purpose Intended
May Need Further Relief.
Therefore, he commended. the gov
eminent should be given the right to
apply for further relief AT any time
within five years, and to that end,
each of the now corporations proposed
to be organized to carry out the plan
should be brought in and made party
to this suit in order to be subjected
to the jurisdiction OF the court.
Any plan adopted. the Attornay-Gen-
eral urged should prohibit the cor
porations among which the business
of the combine Is distributed from
having officers in common. owning
stock in each other. employing the
same selling or purchasing agents. re-
tanning the same office fierce or oc-
cupyng the same offices. or holding
stock In any corporation, any part OF
whose stock is also held by any OF
the other corporations among which
the properties of the combine are dis
tributed
AS TO the distribution OF properties,
the government suggests that no cor
poration be allowed to acquire prop
erty that would invest it with as much
as 10 per cent of any particular line
of the tobacco business: that all
covenants restraining the activities OF
members OF the combination be re-
scinded. and that the United Cigar
stores Company be sold ard dis
tributed to parties other than the de-
PENDANTS.
In asking for the injunctions, tho
Attorney General sets forth that the
defendants ,hould be prohibited from
recreation of the combine by conyeys-
ance of property or stocks. making
express or implied agreements. refus-
ing to sell to jobbers or In any other
way.
Williams Opposes Plan.
Further OPPOSITION to the disintegra-
ton scheme was offered by Henry Il,
Iunter. on behalf OF the independents
retail tohaconists OF the country: At- y
torney- General Wiiliams, OF virR!ntR,
Who spoke also on behalf OF the ir,de~5
oepdents; Attorney General Biclett. OF
North Carolina and AttDrnty-t nt1fxf 81