The Marion daily mirror. (Marion, Ohio) 1892-1912, 1911-12-05


old organization. rlm ratio Of the pre-.
ferred stock to the COMPTON WAS az as
TO 40 This constitutes very decided
change in the character of the owner
ship and control Of each company
In the original suit there were twen.
ty-nine defendants. who were charged
with being the conspirators through
whom the Illegal continuation acquired
and exercised It's unlawful dominion.
Under the decree these defendants will
hold amounts OF stock in the various
tistributee companies ranging from 1
ier cent rs maximum TO 2Si3 per
rent as minimum. except IN the case
Of one small company. the Porto Rican
Tobacco company. In which they will
hold 45 per cent. The twenty.nine IN.
divldual defendants are enjomed for
three years from buying any stock ex.
cept from each other. and the group is
thus prevented from extending its con
troll during that period. All parties TO
the suit and the new companies who
are made parties are enioincd perpet-
ually from in any way effecting any
combination between any OF the com
panies I'm violation of the statute by
way Of resumption Of the old trust
Each of the fourteen companies IL en.
joined from acquiring stock In any OF
the others. An these companies are
rnIoined from having common direc-
tors or 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 Il 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 he division Of
the capital and plant of the trust into
small fractions I'm amount more near
~ equal TO that of each of the indie.
pendent companies. This contention
results from misunderstanding of
the antitrust law and it's purpose. Ut
is not intended thereby to prevent the
accumulation of large capital in busi-
ness enterprises in which such com
blnation can secure reduced cost OF
production. sale and distribution. IL
is directed against such an aggrega-
tion Of capital only when its purpose
Is that of sitting competition. enhanc-
ing or controlling prices and establish.
ing monopoly If 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.
confiscstion Not the Purpose Of the
Statute.
II Is not the purpose Of the statute
to conascate the property and capital
Of the offending trusts. Methods Of
punishment by fine or imprisonment
of TIE individual offenders. by fine Of
the corporation or by forfeiture &C It's
goods in transportation are provided
but the proceeding in equity Is spe-
cllc remedy to stop the operation OF
the trust by injunction and prevent
the future use of the plant and capital
IN violation or the statute.
Effectiveness Of Decree.
| venture to say that not in the his
tory Of American law has decree
more effective for such n purpose been
entered by court than that against
the tobacco trust. As Circuit Judge
Noyes said in his Judgment approving
the decree:
"The extent to which It has been
necessary to tear apart this comblna-
ton and force It into new forms with
the attendant burdens ought TO demon.
strute that the federal antitrust statute
Is Il drastic statute which accomplishcs
effective results. which so long MS Il
stands on the statute hooks must he
obeyed and which cpnot be disobey.
ed without incurrlng 'farreachlng pen.
alties. And. on the other hand. the
sucC essful reconstruction OF this or
gani2Gtion should teach that the effect
Of enforcing this statute Is not 10 de.
stroy. hut 20 reconstruct: not 10 de-
molish. but 70 recreate IN accordance
with the conditions which the congress
| ms uccluTcu Silull exist among the
people OF the United States"
Common Stock Ownership.
II has been assumed that the nres-
ent pro rata and common ownership IN
all these companies 10y former stock
holders OF the trust would insure II
continuance OF the same old single con
trol Of all the companies into which
the trust has by decree been disinte-
| grated This Is erroneous ana Is based
upon the assumed ineflicacy and nroc-
uouSness of judicial inIunctions Tho
companies are cniolucl from co-opera.
.i0n or combination: they have differ.
| cnt managers. directors. purchasing
and sales agents If all or many Of
the numerous stockholders. reaching
into the thousands. attempt to secure
concerted action OF the companies with
view to the control Of the market
their number Is so large that such an
attempt could not well he concealed
and its prime movers and all its partic
ipants would he mt once subject to con
tempt proceedings and Imprisonment
OF a summary character The immedi
ate result Of the present situation will
necessarily he activity by ull the com
! panies under different mAnagprs. and