New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-03
ATTACK TOBACCO PLAN
Continued from first page.

really independent organization. and i
might be impossible to continue in bust
ness for any considerable period of time.
Continuing, 1t is declared by Richardson
& Co:
II is proposed to form a small number OF
great corporations out of the many now In
existence and give TO each almost unllm-
tied capital and resources. your peution-
ers are further advised and believe that.
under the plans now proposed ~ the Amer
lean Tobacco Company. the ultimate con-
troll Of all the companies proposed 70 be or,
remain as It has been heretofore, with the
majority Of the voting stockholders or the
American Tobacco Company, and thar ehch
and all the companies will thereby nave
community of interest. and under suCh con-
ditions no independent manufacturer OF or
dealer in tobacco. with ordinary capital. can
hope to successfully continue I'm said busi-
ness.
Asks Freedom from Trust.
The Richardson company then pro.
tested against leaving the ownership OF
its stock vested I'm any Of the companies
to be organized as this would mean the
control OF the Richardson corporation
by the same interests which now at
tempted 10 control it,.
Referring 10 tho mandate of the Su-
preme Court, which ordered the unlaw-
full combination separated and the diff
ferent companies restored to their origi-
nal independent status, the Richardson
company asked to be freed from all con,
troll and interference by the American
Tobacco Company They avowed on
this point again their nsistence that all
the companies now controlled by the
American Tobacco Company should be
actually separated and placed in real
competition. The grouping together,
they said, Of the many great companies
which should be made active competi-
would permit an alliance and their
operation as one. They added:
Your petitioners cannot see how they or
any other Independent manufacturer Of or
dealer IN tobacco can be In any way pro-
tected while one great corporation holds
and controls T10,GO00J OF assets. and why
the American Tobacco Company should not
dispose OF It's legitimate holdings, pay on
its obligations according 10 their prOritIes
ann hlFlut aHlDIS It's ElOthuOiiltIS what u
left This would not be contiscatOn, but il
would prevent the holding by the American
Tobacco Company OF its vast accumu!a-
tons OF ill-Bottcn gains, the result of years
OF unlawful restraint Of trade, destruction
of competition and thrOttling OF competi-
tors. Your petitioners submit that the
Supreme Court OF the United States in
speaking OF the protection 90 innocent in
vestors, did not have I'm mind the common
stockholders Of the American Tobacco
Company.
The petition was filed by r. p. Rich
ardson. Jr & Co.. according to an agree
ment reached at the last conference,
when it appeared certain that no plan
could be expected from the American
Tobi o Company that would meet the
approval Of the government and satisfy
the Independents.
Forced Into Trust, Says Company.
According to the petition, the Rich
ardson company was forced into the
trust in 1903, when the American To-
bacco Company became possessed Of
unlimited means and by aggressive
methods and ruinous cutting Of prices 1t
had contrived with remarkable success
to break down and overcome COMPETE
tors with smaller resources, either drv-
ing them out Of business or bringing
them TO a condition where it could ac-
quire their plants and business on its
own terms"
Robert Z. Richardson, jr.. it was
stated, was required 70 assign 600 shares
of his common stock, of a par value Of
$4,000 to the American Tobacco Com
pany without any lawful compensation.
and all efforts Of the company to regain
the possession Of that stock and its in
dependence proved futile.
THE plan to be submitted by the
American Tobacco Company is an at
tempt to continue the domination Of the
tobacco industry Of the country by the
half dozen men who control the COM
mon stock Of the American Tobacco
Company" said Charles r. Carruth,
counsel for r. p. Richardson, Jr, & CO.
"If such a plan could pass the industry
would be in the grip Of a monopoly
stronger than the present one, and my
clients are prepared to carry the matter
before the Supreme Court, where, l have
no doubt, it will have to come ulti-
mately."
\ government official said yesterday
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