The Bemidji daily pioneer., 1911-12-06

it's products of cigars, cigarettes and
snuffs. The tobacco suit presented a
far more complicated and difficult case
than the Standard Oil suit for a decree
which would effectuate the will of the
court and end the violation Of the stat
ute. There was here no single hold
ing company, as in the case of the
Standard Oil trust. The main company
was the American Tobacco company,
a manufacturing. selling and holding
company. The plan adopted to-, de-
stroy the combination and restore com
petition involved the redivision of the
capital and plants of the whole trust
between some of the companies con
stituting 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 Readjustment.
The American Tobacco company
(old), readjusted capital $92 100000:
the Liggett & Meyers Tobacco company
new), capital $67,0O0.000; the F. Loril
| lard company new, capital $47.O0O.-
000 and the, r. J. Reynolds Tobacco
company (old), capital $7,525.OO0 are
chiefly engaged in the manufacture
and sale of chewing and smoking to
bacco and cigars. The former one tin
foil company is divided into two, one
of $S25OOO capital and the other of
100000. The one snuff company is
divided into three companies. one with
capital of $15.OO0,OO0. another with
capital of $S,OOO.OOO and a third with
capital of $S.OOOOOO. The licorice
companies are two, one with a capital
Of $5.75S300 and another with a CAPT
tai Of $2,000000. There is also the
British-American Tobacco company. a
British corporation. doing business
abroad with capital of $26,OO0,00O.
the Porto Rican Tobacco company.
with a capital Of $1,SOO.OO0, and the
corporati ton Of United Cigar Stores.
with a capital of $9.OOO.OOO.
Under this arrangement each of the
different kinds of business will be dis
tributed between two or more compa
nies with a division Of the prominent
brands in the same tobacco products.
SO as to make competition not only
possible. but necessary Thus the
smoking tobacco business of the coun.
ry is divided so that the present in,
dependent companies have 2139 per
cent, while the American Tobacco CON-
pany will have 33.OS per cent, the Lig-
gett & Meyers 1905 per cent, the Loril-
lard company 22.S2 per cent and the
Reynolds company 2.66 per cent TtN,
stock of the other thirteen companies,
both preferred and common, has been
Tobacco company and has been dis
tributed amorg it's stockholders. All
covenants restricting competition have
been declared null and further per-
formance of them has been enjoined.
The preferred stock Of the different
companies has now been given voting
power which was denied it under the
old organization. The ratio of the pre-
ferred stock to the common was as IS
to 49, This constitutes a very decided
change in the character Of the owner
ship and control Of each company. z.
In the original suit there were twen-
ty-nine defendants. who were charged
with being the conspirators through
whom the Illegal combination acquired
and exercised it's unlawful dominion.
Under the decree these defendants will
hold amounts Of stock in the various
distributee companies ranging from Al
per cent as a maximum to 2S1a per
cent as minimum, except In the case
Of one small company, the Porto Rican
Tobacco company, in which they will
-