Bisbee daily review., 1911-12-06

iuS iu tne uecislohS or the latest two cases from which such a dangerous theory Of judicial discretion in en. forcing this statute can derive the shehtest sanction.
 Force and effectiveness Of Statute
 Matter of Growth We have been tWenty-oue years making this statute effective for the purposes for which 1t was enacted. Tho Knight case was discouraefng. and seemed to remit 10 the states inc whole available power to attack and suppress the evils Of the trusts. Slow ly, however. the error of that judg ment was corrected. and only in inc last three or four years has the hea.v hand of the law been laid upon inc great Illegal combinations that have exercised such an absolute dominion . over many Of our industries. Criminal prosecutions have been brought and q number are pending. hut juries have felt averse to convieting for jail sen. tences. and judges have been most reluctant to impose such sentences, on men of respeetble standing in so- ciety whose offense has been regarded as merely statutory. Still, as the or fense becomes better understood and the committing Of it partakeS more or studied and deliberate defiance of the law, We can be confident that iu- Ties will convict individuals and that jail sentences win be imposed.
 The Remedy in Equity by Cissolu-
 ton
 In tho Standard Oil case the SUI preme and circuit courts found the combination 10 be q monopoly of the interstate business of refining, trans. Torting, and marketing petroleum and it's products. effected and maintained through thirty-seven different corpoIa- tions, the stock of which was held by a New Jersey company. l. in effect com handed the dissolution of this combi. nation. directed the transfer and pro rata distribution by the corporations 10 and among it's stockholders: and the corporations and individual de fendants were enjoined from conspir ing or combining to restore such mon opoly; and all agreements between the subsidiary corporations tending 10 produce or bring about further viola tions Of the act were enjOined.
 In the Tobacco case, the court found that the individual defendants twenty-nine in number, had been en Eabtu III SNfNtSHlul euOIL 10 afUu1FG complete dominion over the manufac. ture. sale. and distribution Of tobacco in this country and abroad, and that this had been done by combinations made with purpose and effect to sti- fle competition, control prices and establish a monopoly. not only in the manufacture of tobacco. but also of tin-Toil and licorice used in its man. uIacture and Of its products Of cigars. cigarettes, and snUifs. The tobacco suit presented far more complicated and difficult case than the Standard Oil suit for a decree which would ef- fuctuate the will Of the court and end the violation of the statute. There was here no single holding company as in the case of the Standard Oil Trust. The main company was the American Tobacco company, a manu. featuring. selling, and holding com. pany. The plan adopted 70 destroy the combination and restore competi, tion involved the rediyision Of the cap. ital and plants Of the whole trust be tween some of the companies consti tuting the trust and new companies organized for the purposes of the de cree and made parties to it. and mum bering, new and old. fourteen.
 Situation After Re-Adjustment.
 The American Tobacco company Cold). readiusted capital, $92 900, 900 the Liggett & Meyer Tobacco Com pany (new), capital. 67,000 ,0OO: tht r. I,orillard Company (new). capital Sf7,000,000; and the R. J. Reynold. Tobacco Company (old), capital, ST, 525.OO0. are chiefly engaged in tn, manufacture and sale of chewing anC smoking tobacco and cigars. The for mer one tin-foil company is divided in 10 two, one of SS2j, 900 capital and th, other of S4O0,O00 The one snuff com pany is divided into three companies one with a capital of Sl5 100000, an other with a capital of SS.0O0,O ant q third with a capital of $S,O00, ,OOO The licorice companies are two. on, with capital of S5.75S.3O0 and an other with a capital Of S2,O0O 0OC There is, also. the British-Americal Tobacco Company. British corpora tion. doing business abroad with capital of s26,0O0,0OO. the Porto Rical Tobacco Company, with a capital O Sl,s00000 and the corporation O United Cigar Stores with a capital O S2,0O0,00O.
 Under this arrangement, each q the different kinds Of business will 0 distributed between two or more con panies with a division Of the promir ent brands in the same tobacco prod nets. so as to make competition no only possible but necessary. Thus th smOking-tobacco business of the couf try is divided SO that the present ir dependent companies have 21.39 Dc cent. the Ligeett G Meyers 20.Oj pc cent. the Lorillard Company 22.S2 DC ont, and the Reynolds Company 2.6 pr cent. The stock of the other thi teen companies. both preferred an common. has been taken from the q, fendant American Tobacco ComDan and has been distributed among i; stockholders. All covenants restric ing competifion have been declare null and further performance of thel has been enjoined. The preferre stock of the different companies hs now been given voting power whic was denied 1t under the old organizi ton. The ratio of the preferred stoc 10 the common was as 1S to 40. Tn constitutes a very decided change the character of the ownership an control of each company