The Birmingham age-herald., 1911-05-30
UNITED STATES SUPREME COU T HOLDS THAT AMERICAN TOBACCO
 COMPANY IS AN ILLEGAL TRUST
CONTINUED FROM PAGE D


 lated articles throughout the United States and foreign countries and took from the parties in interest covenants not to engage in the tobacco l Not only did the American and the Continental Tobacco companies continue to acquire other companies, but the chief | justice referred to the other companies | as acquiring still more companies | "It is of the utmost importance" said 1 the chief justice, ito observe that the acquisition made by the subsidiary cor poratons in some cases likewise show the | remarkable fact stated above, that is, the disbursement of enormous amounts of money to acquire plants which on being purchased were not utilized but were inn mediately closed'
 The chief justice described the organi- zation of the American Snuff company at the end of an aggressive competition in the snuff business between the Amer ican Tobacco company, with the force ac- quired from the vantage ground resulting from the dominancy of it's expanded or ganization" and independents. As re- suit, he said, the American Tobacco com pany came virtually to have the dominant control as a manufacturer of that prod- uct.
 Tn organization of the Conley Foil com pany, manufacturers of tin foil, an essen tial for packing tobacco products, the American Cigar company, MacAndrews and Forbes company, manufacturers Of licorice, another essential ingredient in the manufacture of tobacco, and the American Stogie company were consid- cred at length.
 The 1904 Merger
 Finally he came down into the merger in 1904 of the old American Tobacco com pany. the Continental Tobacco company and the Consolidated Tobacco company into the new American Tobacco company. Through the method of distribution of the stock of the new company, the chief justice said that J. B. Duke, Thomas F.. Ryan, William c. Whitney, Anthony N. Brady. Peter A. B. Widener and Oliver H. Payne were able to continue the con- trol in the new company that they had exercised in the old.
 A few words were said concerning the trade war between the big British To- bacco company, the Imperial, and the American Tobacco company and finally the organization of these two companies of the British-American Tobacco com pany to carry on a tobacco business out side of England and the United States.
 In taking up the construction and ap- plication of the sherman antitrust law, Chief Justice White said that if the law was applicable to the entire situation presented Tn the IODdCCO case, ana was adeauate to afford relief, Tit can only be because that law will be given a more comprehensive application than has been affixed to it in any previous deci- sion.
 Questions not hitherto considered by the court were included in the case at bar Tn this connection the chief jus tice said
 Thus, even if the ownership of stock by the American Tobacco company in the accessory and subsidiary companies, and the ownership of stock in any of those companies among themselves, were held, as was decided in the Standard Oil com pany case, to be violation of the act and all relations resulting from such stock ownership were, therefore, set aside, the question would yet remain whether the principal defendant, the American To- bacco company, and the five accessory defendants, even when divested of their stock ownership in other corporations by virtue of the power which they would continue to possess. even although thus stripped, would amount to a violation of both the first and second sections of the act.
 Again. if it were held that the cor