The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1911-05-30
III. S. Wins
I. Victory
Court Decision More Drastic Than
That of Standard Oil
Case.
JUSTICE HARLAN HAS
DISSENTING OPINION.
Rule of Reason Is Again Followed.
Tobacco Trust Must
ReOrganize.

WASHINGTON. May 29.-The gov
erhment today won "A sweeping VIC
tory over the so-caIlcd tobacco
trust when the supreme court OF the
United States held the Arierican To-
bacco Company and it's allied cor
porations TO be operating IN violation
OF the Sherman antitrust law.
by directing that the combination
be forbidden the privilege OF inter.
state commerce or be placed in the
hands of a receiver unless Il disin-
tegrates in harmony with the law
within six. or at the mosT. eight
months. the court IS regarded 10 have
dealt with the tobacco corporatio
more drastically than with the Stand
ard OIL Company. of New Jersey.
whose dissolution was ordered two
weeks ago
nile the decree was regarded as
unusually severe. AT the same time
there was a touch OF leniency in not
making the combination an outlaw
now. The various elements Of the
combination are TO be given an oppor-
tunity. under the supervision OF the
United States circuit court for the
southern district OF New York. or
recreation so that there may bo
brought about "a new condition which
shall be honestly in harmony with and
not rcpugnant 10 the law"
The opinion OF the court Nlas an
nounced by Chief Justice White. who
also delivered the opinion of the court
In the Standard OH case.
Rule Of Reason.
The court reiterated its determine.
ton 10 follow the rule OF reason" in
determining what restraints of trade
violate the sherman antitrust law.
Ohiei Justice White explained at
length the decision OF the court in
the Standard oil case. but did not
qualify the reasoning IN the case so
as 10 harmonize 1t in any particular
with the dissenting views expressed
IN that case BY Associate Justice Har-
Ian and other critics Of the decision.
Tonight it is regarded as settled
that the rule of reason" will prevail
IN the courts OF the land in the in
terpretation OF the Sherman antitrust
law until al least the personnel of the
supreme court greatly changes or the
sherman antitrust law is amended.
On practically every point on which
the government appealed from the de-
cision OF the lower court. il scored a
victory today. In the first place.
James B. Duke and the twenty-eiRht
other individual defendants. were held
10 be parties 70 the unlawful combi-
nation instead of being freed from
further responsibility In the case as
directed by the court below.
Tobacco Trust 90 FIaht.
Unlike the Standard oil Company.
which made no move to-day for a
nearing. VIM. r. Perkins. as counsel
Tor the American Tobacco Company.
asked the court. after the announce
ment Of the decision. for leave 10
present petition and 20 stay the
issuance of the mandate of the court
Tor thirty days The request was
granted. Shortly af'erward the court
adjourned until next October.
Chief Justices Opinion.
Chief Justice Whites opinion nav
be grouped into three parts. First. he
gave a detailed statement of the his.
tory of the case and dwct upon what
be DESIGNATED as the "undisputed
iacts. Next be took mp the meaning
of the sherman antitrust law and its
application 10 the case az bar. and
lastly ne considered the remedies TO
be applied
a. the outset ~ his statement OF
facts. he classified the sixty-fve Amer
lean corporate defendants into three
groups The American Tobacco Com
pany. because of its dominant rela-
tion 90 the subject matter of the con-
troversy was designated as the "prf-
mary defendant" Tho American
Snun Company. the American ClRar
Company. The American Stogie Com
pany MacAudrcws a. Forbes company
and The Con7cv Foil company we're
named as accessory defendants
Tho nffvnine other American CORPORA.
tous we're deuomInated the Sub
sidIary defendants" Tho two English
corporations the Imperial Tobacco
Company and tho British American
tcortinued on Htnth Pars1