Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-10-30
CHANGE EXCISE plan BIG TRUSTS future
District Assessor Richards Tobacco Companys DssoI-
Advocates Two Boards ton Plan Up for Approval
NOT FAIR TO ASSESSORS MEETS STRONG OPPOSITION
Works Than to Declared Not Supreme
Earn $500 Salary. Courts Decree
FAVORABLE THINGS ARE SAID WICKERSHAM FILES ANSWER
Sweeping Approval % Time Five
Years-Safeguards sked.
Tobacco Company's Dissolu-
ton Plan Up for Approval.
MEETS STRONG OPPOSITION
Declared Not to Be Within Supreme
Courts Decree.
WICKERSHAM FILES ANSWER
Wants to Reserve Right to Intervene
at. Any Time Within Five
Years-Safeguards Asked. !

NEW YORK. October 3O.-proceed,ns
today before the United States circuit
court in the case of the American To-
bacco Company and its subsidiary con-
Germs mark another new and important
step in The governments struggle with
the trust problem
The federal court hears the views Of
the federal department OF justice, tho
attorneys general of four states and OF
practically all the so-called ''irdependent''
tobacco manufacturers and dealers upon
the plan of reorganization proposed by
the American Tobacco Company and its
co-defendants after the Supreme Court
had declared them an Illegal monopoly
Before IL can be put into effect any
such plan must be sanctioned by the
federal court The tobacco corporations
tentative proposition calls for dividin:
the enterprises il controls into four sep
arate companies
Objections to Plan.
Objections to this plan already filed b.
the Independents declare that il docs
not carry out the intent of the Supreme
Courts decision. which is the prevention
of monopoly and restraint Of trade.
Through mutually Of stock ownership
they contend unity of interest would
be maintained which would stifie COM
petition.
Attorney General wickersham TODAY
filed the government answer. lie is
assisted by ]. o. McReynolds, special
sistant to the Attorney General. and
senior counsel in the trial of the case.
and Edwin r. Grosvenor. special assist
counsel at the trial.
For the defendant companies appear
Lewis Cass Ledyard. De Lancey Nicoll. W.
W. Fuller and Julius Parker. Others
represented at the hearing. which will
continue several days. include the United
Cigar Stores Company. by Solomon NJ.
Stroock: the Imperial Tobacco Company.
by William 3. Hornblower. the r. r.
Richardson Company. which has made
from the proceedings. by Char.es X.
Caruth: bondhoders and preferred stock
holders OF the American Tobacco Com
pany. by Joseph II. Choate and Adrian
by John W. Yerkes; the National Cigar
Leaf Tobacco Association, by Louis ID.
Brandeis and Felix III. Levy; the states
of Virginia. by Attorney General Will
liams: North Carolina, by Attorney Gem
ei al Beckett: South Carolina, by Alto ney
General Lyon; New York. by Attorney
General Carmody. The proceedings are
before Circuit Court Judges Lacombe,
Coke, Ward and Noyes.
Attorney Generals Answer,
The answer of Attorney General
to the plan of dissolution
and reorganization which was filed to-
day in the United States circuit court.
after referring to the directions OF the
conditions. says:
obviously the effect of any plan OF
submitted to the consid
Grafton of the court must be more or
less a matter of conjecture. and il il
impossible for the court to determine
in advance whether or not plan
which proposes to restore competitive
conditions will actually accomplish the
purpose intended Any decree ascer-
tanning and determining upon plan
should. therefore. reserve to the gov
ernment the right at any time. within
five years from date OF entry, to apply
to the court for other or further
lief upon a showing that, as a matter
of fact. such plan has not resulted in
creating new condition which shall
be honestly in harmony with and not
repugnant to the law To that end. as
well for the other purposes herein
new corporations proposed to be or
ganized for the purpose of carrying
out the plan should be brought in
party to this suit in order to he sub
jected to the jurisdiction of the court
and bound by Its decree
Limitation Is Proposed.
The Attorney General asks that what
ever plan be adopted 1t be subject to
49, fal1 hvio uso
The corporation among which the
properties and businesses in the combna-
ton are to be distributed for period
of five years shall not have any Off
GERS or directors in common. These COM
panies shall not have any stock interest
In each other.
They shall not employ the same agen-
cies for the purpose of leaf tobacco or
other raw material. or Tor the sale or
tobacco or other products.
They shall not retain or employ the
same clerical or other organization or
occupy the same office or Offices.
No one Of them shall hold capital stock
in any other corporation any part OF
whose stock is also held by any OF the
other corporations among which the prop
critics of the combination are distributed.
ITO the end that the twenty-nine indi-
vidua defendants i'm this suit. the At
torney General continues, shall not in
crease their control over any Of the cor
pOra tons among WHICH tHe properties
and businesses now in the combination
are to be distributed, pursuant to the
plan. that such defendants be severely
enjoined from, at any time. within five
wears from the date of the decree. ac-
uuiring directly or Indirectly, the legal
or equitable ownership of any amount OF
stock i'm any one of said corporations in
addition TO the amounts which they would
resnecttyelv hold II and when the plan
shall have been carried out as proposed
To Prevent Monopoly.
The further suggestions Of the govern
ment included the following:
That in the distribution OF the prop
critics and businesses now held i'm the
pursuant to the plan of dis
integration the corporation shall be al
lowed to acquire property. tangible OF in
which would invest il with as
much as 40 per cent I'm volume or ia
value of any particular line of tobacco
business.
That all covenants In any way restrict
ing the right of any company or indt-
viduai In the combination TO buy, manu-
facf,fre or sell tobacco or it's products
should be rescinded by the affirmative
action of the respective parties thereto
who are parties to this suit.
That the action terminating covenants
be amplified so as to include like action
with respect to all covenants not o1ly
the tobacco business, but any