The Nevada County picayune. (Prescott, Ark.) 190?-current, 1911-12-08

| anu tAe otHer OF S4Uu,UUu. Inc
one snuff company is divided into
three companies, one with a capital
Oh $15,000,000; another with cap
ltai OF sS,O00,000; and third with a
capital OF $S,000,000. The licorice
companies are two, one with cap
ltai OF s5,75S.00 and another with a
capital of 100000 There is. also
the British-American Tobacco com
pany' a British corporation. doing
business abroad with capital OF
s2o,0O0.00O, the Porto Rican Tobac-
co company with capital OF
sl'Soo.O00, and the corporation OF
United Cigar Stores, with a capital
OF s9OO0,9 900. Under this arrange
ment each of the different kinds Of
business will be distributed between
Two or more companies. with a di-
vision of the prominent brands in the
same tobacco products, SO as to make
competition not only possible but
necessary. Thus the smoking tobac-
co business Of the country is divided
SO mat the present independent com
pahles nave 2l.39 per cent, while the
american Tobacco company will have
oo.oS per cent, the Liggett and
Meyers zoos per cent. the Lorillard
company 22.S2 per cent. and the
neyholds company 266 per cent. The
STOCK OF the other thirteen companies,
ooth preferred and common, has been
taken from the defendant American
lopacco company and has been dis
uiputed among its stockholders All
covenants restricting competition have
oeeh declared null and further per
lornlance of them has been enjoined.
iHe preferred stock of the different
companies has now been given vot-
ihs power which was denied it under
tne old organization. The ratio of
tHe preferred stock to the common
was as IS TO 40. This constitutes
very decided change in the character
Vi the ownership and control of
each company.
In the original suit there were TWEEN
ty-nine defendants who were charged
with being the conspirators through
whom the illegal combination acquired
and exercised its unlawful dominion.
Under the decree these defendants
will hold amounts of stock in the va
rious Distribute companies ranging
from Al per cent. as maximum to
2SR per cent. as a minimum. except
In the case of one small company. the
Porto Rfcan Tobacco company. In
which they will hold As per cent. The
twenty-nine individual defendants are
enjoined for three years from buying
any stock except from each other
and the group is thus prevented from
extending its control during that pc
riod. All parties to the suit. and the
new companies who are made parties,
are enjoined perpetually from in any
way ef;ecting any combination be-
tween any of the companies In viola
ton of the statute by way of resump
ton Of the old trust. Each of the
fourteen companies Is enjoined from
acquiring stock in any of the others.
All these companies are enjoined from
having common directors or officers
or common buying or selling agents.
or common offices. or lending money
to each other
objection was made by certain In
dependent tobacco companies that this
settlement was unjust because 1t left
companies with very large capital IN
active business. and that the settle
ment that would be effective TO put all
on an equality would be division of
the capital and plant of the trust into
small factions in amount more nearly
equal to that of each of the independ-
ent companies. This contention re
suits from a misunderstanding OF the
antitrust law and its purpose. 1t is
not intended thereby to prevent the
accumulation of large capital in bust
ness enterprises In which such com
bination can secure reduced cost of
production, sale and distribution. II
is directed against such an aggrega-
ton OF capital only when It's purpose
is that OF sitting competition, enhane-
ing or controlling prices and estab'
fishing a monopoly. II we shall have
by the decree defeated these purposes
and restored competition between the
large units into which the capital and
|
accomplished the useful purpose OF
the statute.
conflscatlor Not the Purpose Of the
Statute.
II Is not the purpose OF the statute
to confiscate the property and capital
NJ the offending trusts. Methods OF
punishment by fine or Imprisonment
~ the individual offenders, by fine OF
tho CORPORATION, or by forfeiture OF its
goods In transportation, are provided
but the proceeding in equity Is spe-
ciflc remedy to stop the operation OF
the trust by Injunction and prevent
the future use OF the plant and capital
in violation of the statute,
Effectiveness OF Decree.
a, COW that NOT In tho hiG.