The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-12-09

cent. WnlIe the American Tobacco COM
pany will have 33.0S per cent. the Lig-
Rett & Meyers zoos per cent. the Loril-
lard company 2282 per cent and the
Reynolds company 268 per cent. The
stock Of the other thirteen companies,
both preferred md common. has been
Tobacco company and has been dis.
trtbuted among its stockholders. All
covenants restricting competition have
been drclnred null and further per-
formance Of them has been enjoincd.
The preferred stock Of the different
companies has now been given voting
power which was denied II under the
old organization. The ratio of the pre-
ferred stock to the common was as IS
to ~. This constitutes n very decided
change In the character Of the owner
ship 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 It's unla wful dominion.
Under the decree these defendants will
distributes companies ranging from Al
per cent as maximum to 2SH per
cent ns minimum. except In the case
OF on" small company, the Porto Rican
Tobacco company. In which they will
hold ~ per cent. The twenty-ni In.
d1vidnal defendants are enjoiued for
three years from buying any stock ex-
cept from each other. and the group IL
thus prevented from extending its con-
tro' during that period. All parties to
the suit and the new companies who
are made parties are enjoiDed perpet-
ualiy from In any way effecting any
combination between any of the com.
panies In violation of the statute by
way Of resumption Of the old trust.
Each of the fourteen companies is en-.
joined from acquiring stock I'm any of
the others. All these companies are
enjoined from having common dirpc-
tors or officers. or common buying or
selling agents. or common Offices, or
lending money to each other.
Size Of New Compsnies.
Objection WIS made by certain in
dependent tobacco companies that this
settlement was unjust because 1t left
companies with very large capital I'm
active business and that the settle
nient that would he effective to put all
Oh an equality would be a division of
the capital and plant OF the trust into
small fractions In amount more near
ly equal ~ that Of each Of the inde.
pendent companies. This contention
results from misunderstanding of
the antitrust law and it's purpose It
Is not intended thereby to prevent the
accumulation Of large capital in bust.
ness enterprises In which such n COM
Dinatlon can secure reduced cost of
production. sale and distribution. It
Is directed against such an aggreca
ton OF capital only when it's purpose
Is that Of sitting competition. enhanc.
Ing or controlling prices ind esta blish.
Ing monopoly. If we shall have by
the decree defeated these purposes
and restored competition between the
large units into which the capital and
plant have been divided we shall have
accomplished the nseful purpose OF
the statute.
Cenfiscation Not the Purpose Of the
Statute.
II Is not the purpose of the statute
to coniscate the property and capital
or the offending trusts. Methods OF
punishment by fine or Imprisonment
or the individual offenders. by fine of
the corporation or by forfeiture of its
goods In transportation are provided.
but the proceeding In equity is a spe.
cific 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.
venture to say that not In the his.
tory or American law has decree
more effective for such purpose been
entered by court than that against
the TOBACCO trust. AS Circuit Judge
Noyes said In his Judgment approving
the decree:
"The extent to which IL has been
necessary to tear apart this combina-
ton and force 1t into new forms with
the attendant burdens ought to demon
strate that the federal antitrust statute
Is drastic statute which accomplishes
enective results. which so long as IT
stands on the statute books must be
obeyed and which cannot be disobey
ed without incurring farreaching pen.
aitles And. on the other hand. the
successful reconstruction Of this Or
ganization should teach that the effect
or enforcing this statute is not to de-
stroy. but to reconstruct: not to de-
molish, but to recreate in accordance
with the conditions which the congress
has declared shall exist among the
people Of the United States"
Common Stock Ownership.
IL has been assumed that the pres
ent pro rata and common ownership I'm