Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-11-09
APPRoVED.
Continued from Page one.)

the United Cigar Stores. Co. lies out
side the authority of the court but
that this does not preclude any i'll
dependent action later against the Ci-
gar Stores Co, as an individual cor
poration
The announcement of the courts ae-
ton was followed almost Immediately
BY the declaration of counsel for sew
c~al of the opposing independent to-
bacco interests that an attempt I'M
doubtedly would be made to have the
decision reviewed by the United States
supreme court.
Judge Moves drew a general moral
from the case. In conclusion. he said:
THE extent to which it has been
| necessary. to tear apart this combina-
ton and force it into new forms with
| the attendant burdens ought TO dem
onstrate that the federal antitrust
/ statute is a drastic statute which ac
composites effective results, which so
| long as il tand on the tatute books
must be obeyed and which cannot be
| disobeyed without mourning far4reaeh-
| ing penalties.
| All on the other hand the success
tul reconstruction of this organization
| should teach that the effect OF enfore-
ing this statute against Industrial
| combinations is not TO destroy but to
| re- create in accordance with the con-
ditiors which the Congress has de-
elared shall exist among the people Of
| the United States"
| II commenting on the request OF At
| toruey General Wickersham for the
reservation to the government of the
right To apply to the court at amy
time within five years for further or
other relief upon showing that the
plan has not resulted in harmony with
tae law. Judge Laeombe said:
But neither in the supreme court :
| mandate nor its opinion is there any
warrant for the conclusion that this
court is to prescribe the temporary
terms Of the modus vivendi with the
| power 10 -assemble-ourselves or our
| survivors and successors-and modify
! those terms. while in the interim by
purchase or exchanges of these bonds
| upwards of one hundred million dol
Iers' worth Of property Shall have
changed hands irrevocably. The only
| function assigned to us is to consider
| any proposed plan-Which responsible
parties engage to carry out-and APP
prove or reject it, in the event Of re-
lection the only alternative being in
junction, receivership and sale. The
time limit fixed in the mandate, SIX
| month and possibly two more, pre-
clud"s any other construction OF Its
terms
Judge Laeombe says that while thu
plan for disintegration is correctly de.
scribed as the proposed plan OF The
American Tobacco Co. since that cor
poration and the other defendants Of
fer TO carry it out it should be remem-
bered ;hat in its present forfn the
plan was the fruit of much discussion
during the opening hearings.
He SAYS also, that the objections o
Attorney General Wickersham wer.
| followed by notifications of the plan
some of its most drastic provisions
being inserted in order TO meet %
avoid his criticisms He says also tina
provision SHOULD be made in carry
ing out the plan for keeping intac
the books and records of the Ameri
can Tobacco TO-. its present constit
uents and branches. so that they vii
be availab BILE and subject TO eXamina
tlbfI IL tie 81 me tAAtilt DIS a ~ -.
ent in suits tor accounting and othe
existing ltgations.
| Justice Lacombe Also considered tn
| objection which the attorney genera
made tor the plan OF the company t
retain in it's treasury about $l04 ,O00,0
in addition to working capital to pa,
outstanding bonds when they ma
tured The attorney general declared
lthat possession of so much surplu
capital was fraught with possibiiue
of evil use. Judge Lacombe pointe
out that at recent conferences TN
defendants met the criticism by pro
posal to buy zip and CANCEL half OF tn
outstanding bonds at a price in ex
cess of their present value ana 10
the other half securities of the neN
! companies would be offered on d ia
sis of exchange which would ehsuf
/ acceptance Of the offer.
Since the plan was filed. say
Judge Lacombe. the market report
) have given quotations of such bona
. of the new company If and when
: While such reports are POSSIBLY ne
competent evidence in the trial OF
case they seem to indicate II the pres
ent plan be approved, a very brie
2 Iperiod will suffice for the disappear
; ance of substantially all the old bond
and the elimination from the treasur