The new era., 1911-11-09
ARGUMENTS FINISHED BEFORE
UNITED STATES CIRCUIT
COURT.
DECREE EXPECTED SOON
RESULTS MUST BE IN ACCORD
WITH DECISION OF THE
SUPREME COURT.
Western Newspaper Union News Service

Western Newspaper Union News Service,
Now York, - The end has been
reached In the arguments before the
United States Circuit Court on tho
plan of dissolution filed by tho
American Tobacco Company.
A decree is expected within 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 IL be disin.
tcGrated TO restore competition.
Interest in the arguments centered
in the appearance of Attorney GEN
eral Wickorsham. He said he ap.
proved generally of the plan but made
recommendations which mot 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
crnmout the right TO appeal to the
court at any time il should appear
that the dissolution of the trust had
not resulted In conditions in harmony
with the anti-trust 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
intogration plans.
MIR, Wickersham also was criticised
by counsel for the company for sug-
Gesting that the court revise the dis
solution scheme, in so far as II re.
lates to the United Cigar Stores Com
pany. CharacteriEing 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 10 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 Taft's message 10 Congress
on the subject. expressing desire to
conserve the legitimate interests OF
priperty.
How the reorganization would re
suit In restoration of competition. De.
laneey Nieoll. attorney for the Amer.
lean Tobacco Company. sought 10 show
by analysiug 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 sour corporations, the American
Tobacco Company. Lisgett 4 Myers
Tobacco Company. Z, Lorillard 4 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 ou;,
lined in Louis u. Brandeis' remon-
STRANGE IN behalf Of the independent
growers. Mr.. Nieoii declared. would
give the independents speedy moaop,
oily Of the market.
Let these independents have y di-
vision of property such as they pro
pose. sad ressrietions Of the business
thar they desire. and they viii soos.
own the earth he said. "A more in,
genloGs method 10 h0ld Up the bGsi,
ness OF MIR, BrandeiS' clients at the
expense OF sae American Tobacco
Company eo0ld not be conceived.
With our property in a rseeivership.
ms they would have It, who but they
would buy on the auction eloeSs'