Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1911-05-30

rnent won a sweeping victory over the
eo-called Tobacco trust" today, when
the supreme court OF the United States
held that the American Tobacco com
pany and it's allied corporations are
operating in violation of the Sherman
antitrust law.
Treated More DrastiosIIy Than Oil
Trust.
BY directing that the combination
be forbidden the privilege of inter-
state commerce or be placed in the
hands Of receiver unless IL disinte-
CRATES in harmony with the law within
six or n. the most eight months the
cours is regarded TO have dealt with
the tobacco corporations more drasti-
caily than with the Standard Oil COM
peny Of New Jersey, the dissolution
ef which was ordered two weeks ago.
Has conspired 10 Monopolizs Business
Both the first and second sections
OF the Sherman antitrust law have
been Violated by the Tobacco trust, ac-
cordins TO the court. Not only has
& restrained wrongfuily and unlaw-
fully interstate commerce in the eyes
Of the court. but IT has conspired to
fncnopOlize the tobacco business to the
injury Of the public and of it's COM
pefitors
One Element of Lenienoy.
While the decree was regarded as
unusually severe. at the same time
there was lenieucy in Its not making
the combination an outlaw now the
various elements Of the combination
being given an opportunity. under the
superv sion Of the United States cir
cult court for the southern district of
Now York cf re-creating it so there
may be brought about "A new condi-
ficl which shall be honest, in harmony
with, and not repugnant to the law"
Justice Harlan Disserts Again.
The opinion OF the court was an
nounced by Chief Justice White, who
also deiiN cred the opinion of the court
IN the Standard Oil case. The entire
court agreed that the tobacco comtt-
nation violated the Sherman antitrust
law. but Associate Justice Harlan dis
f7nted from the repeated iuterpreta-
ton Of the Sherman antitrust law so
as to call for the application of the
rlle OF reason in Determining what
restraints OF trade were forbidden by
the act In this respect the division
Of the court was the same as in the
Standard OIL case.
Harlan Opposes Reorganization.
Justice Harlan also took issue with
the rest Of the court as to the reor-
gauization Of the tobacco Company.
saying that he found nothing in the
record which made him "at all anx-
3ous" 70 perpetuate any new com1oina-
lion among these companies which
the court comedies at ell times exhib-
tted conscious wrong doing"
Rule Of Reason Reiterated.
The court reiterated its determina-
ton 20 follow the rule of reason" in
determining what restraints Of trade
violate the Sherman antitrust law
Chief Justice White explained at
length the decision of the court in the
tandard oil case. but did not qualify
the logic IN that case so as to make it
D. . f..
dissenting views expressed in that case
b. Associate Justice Harlan and other
critics Of the decision.
a Deliberate Intent to Create Mo-
nopoy.
lc reality. the decision wss nothing
less than "a deliberate exempllfication
OF the application Of the rule of rea-
son TO "undisputed facts" From the
Gate Of the organization of the first
combination. the court found that there
was a purpose to acquire dominion and
control Of the tobacco trade. not by the
mere exertion Of the ordinary right to
COMPACT and to trade. but by methods
de0sed in order 10 monopo1ize the
trsde by driving competitors out of
business.
Played Upon Cupidity of Competitors.
This purpose was carried out ruth
lessly. according to the court. upon
the assumption that to work upon
the theory or play upon the cupidity
o. competitors would make success
possible Such action Viewed in the
light Of reason was regarded by the
court as violation of the law
Government Scores on Practically Ev-
cry Point.
On practically every point on which
the government appealed from the de-
eision Of the lower court it scored a
victory today. IN the first place James
T. Duke and the 2s other Individual
defendants we're held to he parties 10
the unlawful combination instead of
being freed from further responsibility
In the case as directed by the court
below
British Trusts Are "Co-operators."
Instead Of disrnissing the bill as to
the Imperial Tobacco company, the
so-called British trust. and as to the
British A neriCan Tobacco compapv
the creature Of the two parent tobacco
trusts these two corporations were
rcle 10 ne co-operators in the unlaw-
M combination. So, too, was the
United Cigar Stores company, a re-
ton orzanization, with stores through
Out the country.
Trust to Ask for Stay Of Issuance.
Unlike the Standard Oil connanv.
which took no steps today for a hear
Ing. William r. Perkins Of counsel for
the American Tobacco company. ask
ed the court after the announcement Of
tbs decision for leave to present a
petition and stay of the issuance Of
the mandate Of the court thirty DAYS
The request was granted. Shortly aft
erward the court adjourned until next
October
Text Of the Decree.
The decree is as follows:
FIrst-That the combination in and
o. itself. as well as each and all of
the elements composing it, whether
corporate or individuals, whether con-
sidered collectively or separately be
dccreed 70 be in restraint of trade and
an attempt TO monOpoIize and mo-
nopolizarion within the first and sec
ond sections of the antitrust law.
Lower Court to Reopen Case.
Second-Thst the court below, In
order 60 give effective force to our
decree ia this regard. be directed to
hear the parties by evidence or other
wise. as 1t may be deemed proper. for
the purpose of ascertaining and deter
mining upon some plan or method of
dissolvipg the conbinat ton and re-
cyealing its elements now composing