New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-04
TIES UP TOBACCO TRUST
Court Puts Check on Dealings
Tending to Preserve Monopoly.
DISSOLUTION PLANS UPSET
Great Corporation May Go Into
Hands of Receiver Before
It Is Broken Up.

An injunction restraining the so-called
Tobacco Trust from doing any act which
might further extend or enlarge the power
Of combination was issued yesterday by
the United States Circuit Court The re-
straining order was contained IN decree
filed by the lower court on the mandate IN
the Tobacco case handed down by the
United States Supreme Court on May %.
The decree was drafted after a confer
ence lasting an hour and half between
Judges Lacombe. Moves and Ward OF the
Circuit Court; Attorney General Wicker
sham, James c. McReynolds, who as spe-
cial Attorney General had prepared the
complaint in the Tobacco case; United
states Attorney Wise. Delaney Nicol'
Junus Parker and Lewis Cass Ledyard'
counsel for the American Tobacco Com
pany; William r. Hornblower and J. Nor
ris Miller counsel for the British-Amertcan
Tobacco Company, and Solomon NJ.
Stroock, counsel for the United Cigar
Stores Company.
Tentative plans for the dissolution OF the
Tobacco Trust in accordance with the
mandate Of the Supreme Court were sub
rnitted az the conference by counsel for
the tobacco companies and they were dis
cussed hv the repre- sentatives ot the govern
ment The Judges refrained from express
ing any opinion regarding the plans.
After the conference Judges Lacomhe,
Moves and Ward met and drafted the de-
cree Of the Circuit Court. which was fled
. by Commissioner Shields It's most strik-
Ting order reads as follows
Pending the dissolution Of the combina-
/ ton and the recreation from the elements
| now composing Il Of new combination
honestly in harmony with the law under
the direction Of this court. all the de-
! fendarts their agents and servants are
/ restrained and enioined from dong any
act which might further extend or enlarge
/ the power OF the combination by any
means or device whatsoever
Strictly construed. this order will have
the effect Of compelling the Tobacco Trust
10 give I'D all the advantages ~ a monopo-
| ustic administration four months before
the time set By the Supreme Court for rs
dissolution. Until the adjustment has
been approved by the court. the United
| Cigar stores Company will be unable to
open up any more branch stores, and the
purchases Of tobacco and all other srnok-
| irg materials fer future delivery VIII have
10 be made by the individual companies
where they were formerly conducted by the
/ Tobacco Trust on behalf OF all o. its sub
/ salaries.
The impression IN the Federal Building
was that the decree was issued because
there had appeared at the conference vari-
Gus indications that the tobacco interests
Kill End n difficult TO arrive az some hnal
plans satisfactory 70 them. None Of the
cf7cials wanted 70 discuss the preliminary
pleus submitted AZ the conference. and
counsel for the tobacco companies were
eouallv ~eticent L was learned however,
that the plans as evolved up 70 the pres
ert We're far from pleasing 70 certain OF
the interests in the Tobacco Trust
II was said that the difficulties Of the
problenn Of dissolution were looming I'D in
such hopeless manner that some Of the
|conferrees received the impression that the
/ Tobacco Trust will have 70 he placed in the
hands Of a receiver before II will disin-
tegrate.
The decree Of the Circuit Court, after
citing the opinion OF the Supreme Court,
which declared the American Tobacco COM
pany and The other defendants in the case
/ an Illegal ClmbInafOn in restraint OF uaue
Quoted the instructions Of the highest court
and issued the following order.
That the anal decree entered herein on
/ December L. 1905. BE- Set aside ard the
cause restored 70 the docket, 20 be- pro
ceeded with as directed Oy the Supreme
Court.
in the event that the combination assaied
in the pleadings IS not dissolved, and .
condition OF disintegTation in harmony with
! the law IS not brought about, either as the
/ consequence Of the action Of the court IN
determining an Issue or the subject or ac-
cepting plan agreed upon, prior 10 the
expiration Of six months from June 80, 1911
or such later time. not more than sixty
davs thereafter. a. may be designated. Il
in tie Judgment ~ the court the necessi-
ties OF the situation require an extension
this court viii, by issuing an injunction re-
straining the movement OF the products ~
/ the combination IN the channels ~ inter
state commerce. or by the appointment OF
receiver give effect 70 the requirement.
Of the statute, and leave rs granted 20 ap-
ply for more specific directions In this re-
gard
Leave is granted % any party 70 apply
/ % tho court from time 70 time for relief
which NAV seem proper and In conformity
with the opinion and Judgment Of the Su-
preme Court and the terms Of this decree.