The Idaho Springs siftings-news., 1911-11-04
DISSOLvINC BIG
TOBACCO TRUST
ARGUMENTS FINISHED BEFORE
UNITED STATES CIRCUIT
COURT.
DECREE EXPECTED SOON
RESULTS MUST BE IN ACCORD
WITH DECISION OF THE
SUPREME COURT.
western Nswspaper Union News Service

Western Newspaper Union News Service
New York - The end has been
reached in the arguments before the
United States Circuit Court on the
plan OF dissolution filed by the
American Tobacco Company
decree is expected within a few
days determining whether the plan is
in accordance with the decision OF
the Supreme Court, which held the
American Tobacco Company to be an
illegal combination in restraint Of
trade and ordered that it ii be dis'n-
tegrated to restore competition
Interest in the arguments centered
in the appearance of Attorney Cen
eral Wickersham. He said he APP
proved generally OF the plan but made
recommendations which met protest
on the part OF the stock and bond
holders OF the American Tobacco Com
pany.
Mr.. Wickersham insisted that the
court by injunction to prevail from
three to five years reserve to the GOV
ernment the right to appeal to the
court at any time it should appear
that the dissolution of the trust had
not resulted in conditions in harmony
with the antitrust law.
Joseph II. Choate. counsel for the
six per cent bond holders who are
to surrender their bonds for stock in
the new segregated companies, pro
tested against this amendment.
He was supported by Lewis Cass
Ledyard of counsel for the company
Both declared that the Incorporation
of such clause would upset the dis
lntegration plans.
Mr.. Wickersham also was criticised
by counsel for the company for sug-
gestng that the court revise the dis
solution scheme, in so far as it re-
lates to the United Cigar Stores Com
pany. Characterizing the alliance of
the stores company and the trust as
one of the chief sources of compliant
from the independent tobacco trade,
the attorney general urged that the
stores company be segregated through
the sale of its stock controlled by
trust holders to outside investors
The attorney general declared he
had sought to bring about plan to re
organization without resort to receiv-
ership which would be disastrous, and
in outlining the governments attitude
In trust prosecutions, he quoted from
President Tafts message to Congress
on the subject. expressing a desire to
conserve the legitimate interests of
priperty.
How the reorganization would re-
suit in restoration of competition. De
lancey Nicoll, attorney for the Amer
lean Tobacco Company, sought to show
by analyzing in detail the segregation
of the company into four big corpora
tons and fourteen companies. The
minority interests of each group, he
declared. would be different and each
of the four corporations, the American
Tobacco Company, Liggett & Myers
Tobacco Company, p. Lorillard & Co.
and the Il. j. REYNOLDS company,
which already has Withdrawn from the
trust, would be controlled by their pre-
ferred stockholders.
The plan of the opponents as out,
lined in Louis d. Brandeis' remon-
STRANGE in behalf Of the Independent
growers, Mr. Nicoll declared, would
give the Independents a speedy monop-
oily OF the market.
Let these independents have di-
vision Of property such as they pro
pose. and restrictions Of the business
that they desire, and they win 500,
own the earth, he said. "A more in
genous method to build up the bust
ness OF Mr. Brandeis' clients at the
expense OF the American Tobacco
Company could not be conceived.
With our property in receivership,
as they would have it. who but they
would buy on the auction block?"