The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1911-12-05

fIded into t0a. orc st fs15 900 car
lial aHd .he other of t4e385g Use
one snuE company divided into
three companies. enc with a capital
Oi $4,000 900. another with a cap.
i.As oi 81 88e eco. aaa e tAlrd With a
capital oi ssQeQo oaa The licorice
Companies are tTo one with a cap
iisl ot g515sl0 ana another with q
capital oi $1,000 GOO Fhere Is. also.
tne Eritish-Amerlean Tobacco com
pAny 4 British corporation. doing
business abroad alth capital ~
$4,000 600. the Pesto Rican Tobac-
GO company with capital oi
sl'sQo 600 and the corporation Of
United Cigar Stores. with a capital
Of &s0o0O00 Under this arrange
ment each OF The different kinds Of
business win be distributed between
Two Or more companies. with a di.
Vision of the prominent brands In the
same tobacco products so as to make
competition not only possible bit
necessary Thus the smoking tohac-
60 business Of the country Is divided
50 that the present independent com.
panies have 2ISs per cent, while the
american Tobacco company win have
s5'os per cent. me Liggett and
AeyeFs zoos per cent. the Lorillard
company 22S2 per cent. and The
Reynolds company 2.66 per cent The
stock Of the other thirteen companies
both preferred and common. has beer
taken from the defendant American
Tobacco company and has been dls
lFiDaied among its stockholders. All
covenants restricting competition have
Deen declared null and further pei
lofmance Of them has been enioiued
The preferred stock Of the difereni
companies has now been given vol
ING power which was denied 1t under
ne old organization. The ratio Of
ihe preferred stock to the common
Nes as US to 40 This constitutes
xeFy decided change ii the character
q me ownership and control 81
e~ch company
III the original suit there were TWEEN
tynine defendants who we're charged
With being the eonspirators through
whom the illegal combination acquired
and exercised IT'S unlawful dominion.
Under the decree these defendants
win hold amounts Of stock In the va.
rious distributee companies Raging
from Al per cent. as maximum ID
2Slz per cent as a minimum, except
IN the case of one small company, the
Porto Rican Tobacco company, In
which they win hold As per cent The
twenty-nine Individual defendants are
enjoined for three years from buying
any stock except from each other
and the group is thus prevented from
extending Its control during that Pc
Rod All parties to the suit. and the
new companies who are made parties,
are enjoined perpetually from in any
way effecting any combination be-
tween any Of the companies IN viola
t:on Of the statute by way OF resump-
tion Of the old trust. Each Of the
fourteen companies IS enjoined from
acquiring stock In any of the others.
All these companies are enjoined from
having common directors OF officers.
or common buying or selling agents,
or common offices. or lending money
to each other
size Of New Companies.
Objection was made by certain in.
dependent tobacco companies that this
settlement was unjust because It left
companies With very large capital in
active business. and that the settle.
ment that would be effective to put all
on an equality would be a division Of
the capital and plant OF the trust into
small factions in amount more nearly
equal 20 that OF each OF the independ.
ent companies. This contention re
suits from q misunderstanding Of the
antitrust law and fits purpose It is
not intended thereby to prevent the
accumulation Of large capital In bust
ness enterprises in which such a com
bination can secure reduced cost OF
production. sale and distribution. II
is directed against such an aggrega-
ton Of capital only when IT'S purpose
Is that OF sitting competition. enhanc-
ing or controlling prices and estab
fishing a monopoly II we shall have
/ BY the decree defeated these purposes
and restored competition between the
large units into which the capital and
plant have been divided we shall have
accomplished the useful purpose Of
the statute
conHscstlon Not the Purpose Of the
Statute.
II Is not the purpose OF the statute
to conhscate bhe property and capital
Of the offending trusts. Methods OF
punishment BY fine or Imprisonment
of the individual offenders. by fine OF
the corporation, or by forfeiture Of It's
goods IN transportation, are provided.
but the proceeding In equity IS a spe.
cinc remedy 10 stop the operation OF
the trust by injunction and prevent
the future use OF the plant and capital
IN violation Of the statute
Effectiveness of Decree.
venture to say that not in the his
tory Of American law has decree
more efectiYe for such a purpose
been entered by court than that
against the Tobacco trust AS Circuit
Judge Noyes said In his judgment ap