The Forrest City times., 1911-12-08

three companies. one with a capital of s15,06o.000: another with a cap ital of sS.0o0.o00; and a third with capital of sS,000.000 Tae lieorice companies are two. one with a cap ital Of s5.75S.d % and another with capital of s2.000.000 There Is. also the British-American Tobacco com. pany. British corporation. doing business abroad with a capital of s26.o0o,00o. the Porto Rican Tobac- co company with capita, Of $l.S00.000. and the corporation of United Cigar Stores. with a capital Of s9.000,00 Under this arrange. ment each of the different kinds Of business will be distributed between two or more companies. with a d. Fision or the prominent brands in the same tobacco products, so as 10 make competition not only possible bu; necessary. Thus the smoking tobae- co business of the country is divided so that the present independent com. panles have 2l.39 per cent. while the american Tobacco company will have 3S-OS per cent. the L.gget. and Meyers 20.05 Der cent. tie Lorillard company 22S2 per cent. and the heyhelds company 2.66 Der cent. The s'och ot the other thirteen eomBanies. ooth preferred and common. has been taken rom the defendant American ! ooaeco company and has been dis u1outed among it's stockholders. All covenants restricting competition have oeeh declared null and further per IoTHahce U. of them has been enioined ne preferred stock of the different companies has now been given vo,. lHs power which was denied il under me old organization. The ratio Of tue preferred stock to the common "ds as x to 10 This constitutes n very decided change in the character oI the ownership and control of each company.
 In the original suit .here were twen. ty-nine defendants who were charged with being the conspirators through whom the Illegal combination acquired and exercised it's unlawful dominion. Under the decree these defendants will hold amounts of stock in the va rious distributee companies ranging from 4l per cent. as a maximum to 2SR per cent as a minimum. except Tn the case of one small company, the Porto Rcan Tobacco company. in which they will hold 45 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 it's control during that pc riod. All parties to the suit. and the new companies who are made parties. are entoined perpetually from in any way ececting 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
 olze CT New companies.
 Objection was made by certain in dependent tobacco companies that this settlement was unjust because f left companies with very large capital in active business. and that the settle. ment that would De effective To put all on an equality would be division of the capital and plant Of the trust into small factions in amount mere nearly equal to that of each of the indepenG- ent companies This contention re- suits from a misunderstanding of the antitrust law and it's purpose It is not intended thereby to prevent the accumulation of large capital in busi- ness enterprises in which s1ch a com bination can secure reduced cost of production sale and distribution It is directed against such an aggrega- ton of capital only when its purpose Is that of stifing competition. enhanc ing or controlling prices and estab- fishing a 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 useful purpose of the statute
 confscatior Not the Purpose of the
 Statute.
 It Is not the purpose of the statute to confscate the property and capital of the offending trusts. Methods Of punishment 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- cifc 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 of American law has a decree more effective for such q purpose baen entered by a court than that aeainst the Tobacco trust As Circuit rudge Moves said in his judgment ap-