The Julesburg grit-advocate., 1911-12-07

nAQoI4ctufe ana 0Ak0 OF cneWlR& ana
smoking tobacco and cigars. The
former one tin4oil company 10 d.
vided into two. one of SS25 900 cap
ital and the other OF 100000. The
one snun company ID divided into
three companies. one with a capital
OF Sl5.OOO.OO0. another with q cap
ital Of 5000. 900: and 4 third with q
capital Of 100000. The licorics
companies are two. one with cap
itai of S5.75S.0O and another with .
capital Of s2.0OO,OOO There is. also.
the British-American Tobacco CON-
pany. British corporation. doing
business abroad with a capital Of
$2S.OO0.00O, the Porto Rican Tobac-
co company with capital Of
n.SO0.0 900. and the corporation Of
United Cigar Stores. with q capital
OF SS.OOO.0OO Under this arrange
ment each of the different kinds of
business will be distributed between
Two or more companies. with . d.
vision OF the prominent brands in the
same tobacco products. 90 a. to make
competition not only possible but
necessary. Thus the smoking tobac-
co business Of the country 10 divided
10 that tho present independent com
panies have 2l.3s per cont, while the
American Tobacco company will have
ss.os per cent. the Liggstt and
Meyers zoos per cent, the Lorillasd
company 2zs2 per cent. and the
Reynolds company 2.66 per cent. The
STOCK OF the other thirteen companies,
Doth preferred and common, has been
tsken from the defendant American
Tobacco company and has been dis
triouted among its stockholders. All
covenants restricting competition have
oeen declared null and further per
Iormaoce OF them has been en1oined.
Inc preferred stock Of the different
.o"penies has now been given vot-
ing power which was denied It under
tne old organization. The ratio Of
the preferred stock to the common
was a. 7s to 40. This constitutes .
very decided change in the character
OF the ownership and control OF
each company.
In tho original suit there were TWEEN
ty-nine defendants who we're 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
rfous distributee companies ranging
from Al per cent. as a maximum to
2sh per cent. as a minimum, except
In the case Of one small company. the
Porto Rican Tobacco company. in
which they will hold As per cent The
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
Rod. All parties to the suit. and the
new companies who are made parties.
are en1oined perpetually from In any
way efecting any combination be-
tween any of the companies In viola
hon 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
Size Of New Companies.
Objection was made by certain In
dependent tobacco companies that this
settlement was unjust because 1t left
with very large capital in
active business. and that the settle
ment that would be effective to put all
on an equality would be a division OF
the capital and plant of the trust into
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 busi-
ness enterprises in which such com
b nation can secure reduced cost OF
sale and distribution 1t
is directed against such an aggrega
tion OF capital only when its purpose
is that of sitting competition. enhanc.
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
plant have been divided. we shall have
accomplished the useful purpose of
the statute
confiseatior Not the Purpose os the
Statute.
1t is not the purpose OF the statute
to confscate the property and capital
of the offending trusts. Methods OF
by fine or Imprisonment
of 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
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