The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-12-05

| Standard Oil trust The main company
was the American Tobacco company.
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
shutting the trust and new companies
organized for the purposes of the de-
cree and made parties to it and num-
bering. new and old fourteen
Situation After Readjustment.
The American Tobacco company
(oldD, readjusted capital $92, 100000;
the Liggett & Meyers Tobacco company
new, capital SGT, 100000: the P. Loril-
lard company new, capital S47.00O,-
600. and the R. ]. Reynolds Tobacco
company (old), capital 81. 525, 900, 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 1925. 900 capital and the other of
$500. 900. The one snuff company is
divided into three companies. one with
a capital of $4,000, 600. another with a
capital of 100000 and third with
a capital of $8OOO.OOO. The licorice
companies are two. one with capital
of So, 75S. 300 and another with a capt.
tai of Sc, 100000. There is also the
British-American Tobacco company. a
British corporation, doing business
abroad with a capital of $26,OOO.OOO.
the Porto Rican Tobacco company,
with a capital of S1.SOOOOO. and the
corporation 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
MES 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-
try is divided so that the present in
dependent companies have 21.39 per
cent, while the American Tobacco com
pany will have 30. OS per cent, the Lig-
gett & Meyers 2O.O5 per cent, the Loril-
lard company 22.S2 per cent and the
Reynolds company 2.66 per cent. The
stock of the other thirteen companies, |
both preferred and common, has been
taken from the defendant American
tributed among its stockholders. All !
covenants restricting competition have |
been declared null and further per-
Torrance 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 40. This constitutes a very decided |
change in the character of the owner |
ship and control of each company.
In the original suit there were TWEEN |
ty-nine defendants. who were charged |
with being the conspirators through |
whom the illegal combination acquired |
and exercised its unlawful dominion.
Under the decree these defendants will |
hold amounts of stock in the various |
companies ranging from II |
per cent as a maximum to 2815 per |
cent as a minimum, except in the case
Of one small company, the Porto Rican
company, in which they will
hold 40 per cent. The twenty-nine in
dividual defendants are enjoined for |
three years from buying any stock eN-
cept from each other. and the group is
thus prevented from extending its con-
troll during that period. Al parties to
the suit and the new companies who
ire made parties are enjoined perpet-
lally from in any way efecting any