The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1911-12-07
PRESIDENT SENDS HIS
MESSAGE TO CONGRESS

produce or bring about further VIOLATIONS
In the Tobacco case. the court found
that the individual defendants, 20 In mum.
Der, had been engaged in q successful
the manufacture, sale and distribution
OF tobacco In this country and abroad,
and that this had been done by combina-
tions made with purpose and emeSt TO
tablish a monopoly, not only in the manu-,
facture of tobacco, but also or tin Toll
and iicorice used In its manufacture ana
OF its products Of cigars, cigarets and
snuffs. The tobacco suit presented far
more complicated and difficult case than
the Standard OIL suit for a decree which
and end the violation Of the statute
There was here no single holding com,
pany as In the case OF the Standard Oh
lean Tobacco Company, a manufacturing.
selling and holding company. The plan
adopted to destroy the combination and
son of tSe eapa ana pans Of
whole trust between some OF the compa-
MES constituting the trust and new COM
panies organized for the purposes OF the
decree and made parties to 1t, and NUM-
berfng, new and DID, Ia.
Situation After Read justrent.
The American Tobacco company (old).
readjusted capital, $92, 600. 900; the Liggett
& Meyers Tobacco company (new). capt.
tai, $50, 200, 600; the p. Lorillard company
new. capital. $i7.0OO.o 900; and the r. j..
Reynolds Tobacco company (old), capital.
81. 625, 000 are chiefly engaged In the man
Ing tobacco and cigars. The former one
tin foil company is divided into two, one
of $S25,000 capital and the other Of $400, 900.
three companies, one with a capital Of
SIS, 600 900, another with q capital Of y, 1000.
900. and third with a capital Of 81. 900.
The Gorics s are two one ely, W,ta
capital Of $2000,000. There Is. also, the
|British-American Tobacco company. q
British Britt dS9S SSsnss ss PSnso
Rtcan Tobacco company. with O. capital
Of 81, 800, 900. and the corporation OF United
Cigar Stores, with capital OF $9,OOO.0O
different kinds of business will be dis
tributed between two or. more companies
with a division OF the prominent brands
IN the same tobacco pr0d1Tcts s so as h, 10
necessary. Thus the smoking tobacco
business of the country is divided 80 that
the present independent companies have
q. 80 per cent, while the American Tobac-
co company will have 33.0S per cent. the
Lo sf company 22.s2 per cent. and
stock OF the other 10 companies, both pre-
ferred and common, has been taken from
the defendant American Tobacco company
and has been distributed among Its stock
tition have been declared null and further
performance Of them has been enjoined.
The preferred stock of the different COM
panies has now been given voting power
which was denied 1t under the old or
ganization. The ratio OF the preferred
stock to the common was as Is to 40. This
constitutes a very decided change In the
character OF the ownership and control OF
In the original suit there were 20 de-
PENDANTS who were charged with being
the conspirators through whom the IL
legal combinations acquired and exercised
these defendants will hold amounts OF
stock in the various distributee COM
panies ranging from Al per cent as max
imum to 2SA per cent as a minimum, ex'
cept In the case of one small company,
the Porto Rtcan Tobacco company In
which they will hold As per cent. The Is
individual defendants are enjoined FOR
three years from buying any stock except
prevented from extending its control dur
ing that period. 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 violation OF
the statute by way of resumption or the
old trust. Each of the IA companies Is
enjoined from acquiring stock In any OF
the others. All these companies are en-.
Joined 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 indepen'
dent tobacco companies that this settle
ment was unjust because 1t left com
panies with very large capital In active
business, and that the settlement thai
would be effective to put all on an equal
and plant Of the trust into small frac
tons In amount more nearly equal t.
that Of each Of the independent companies
This contention results from q misunder
standing Of the antitrust law and its pur
pose. It is not intended thereby to pre-
vent the accumulation of large capital II
business enterprises in which such com
bination can secure reduced cost OF pro
duction, sale, and distribution. 1t Is d.
| rected against such an aggregation o.
capital only when its purpose Is that o.
| sitting competition, enhancing or controll
| ing prices, and establishing monopoly
these purposes and restored competition
| between the large units into which tn,
capital and plant have been divided. W,
shall have accomplished the useful pur
pose Of the statute.
Confiscation Not Purpose.
| 1t Is not the purpose Of the statute t
confiscate the property and capital Of thu
| by fine or Imprisonment Of the individual
| offenders by fine of the corporation or b!
| forfeiture OF its goods in transportation
| are provided, but the proceeding in equit,
| is specific remedy to stop the operation
| Of the trust by Injunction and proven
| the future use Of the plant and capita
in violation Of the statute.
Effectiveness of Decree.
| venture to say that not in the histor.
of American law has a decree more eff
| fect.ve for such purpose been entered by
a court than that against the tobacco
| trust. AS Circuit Judge Noyes said in hi
| Judgment approving the DEGREES:
1.-THE extent to which II has been neces
| sary to tear apart this combination an,
| force 1t into new forms with the attend
| ant burdens ought to demonstrate that tn
federal antitrust statute Is drastic stat
| ute which accomplishes effective results
| which so long as Ii stands on the statut
| books must be obeyed, and which can no
| be disobeyed without mourning far-reach
| ing penalties And, on the other hand
| the successful reconstruction Of this or
ganization should teach that the effect o
enforcing this statute Is not to destroy
but to reconstruct; not to demolish, bu
| to re-create in accordance with the con
ditions which the congress has declares
shall exist among the people Of the Unite
States
Common Stock Ownership.
1t has been assumed that the presen
pro rata and common ownership In a
these companies by former stockholder
of the trust would insure a continuanc
Of the same old single control Of all tn
companies into which the trust has b
decree been disintegrated. This 10 enron
eous and Is based upon the assumed In
efficacy and innocuousness Of judicial In
functions. The companies are enjoine
from cooperation or combination: the
have different managers, directors, puI