Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-10-31

this cause, the foregoing requests and
suggestions be adopted and embodied"
Ledynrd Appears for Trust.
Mr.. Ledyard argued against a recolv-
ership for the Tobacco trust
Never yet In this country" snid Mr.
/ Ledyard, has conflscatlon OF property
been permitted, and | hope Il never will
be. II was not unreasonable that the
supreme court recommended that a plan
OF reorganization OF these companies be
devised which will be IN harmony with
the law and not result In disaster to bust
4 ness interests"
Mr.. Lodyard declared that at the outset
following the order Of the supreme court
for dissolution OF the combination, Il
| seemed impossible 10 devise plan, but
that plan finally had been proposed
after many conferences in which Attor-
ney General wiekersham participated.
! MIR. Ledyard alluded frequently to CON
perences with Attorney General wicker
sham on the case and to the atters in
sistcnco that the American Tobacco com
pany was too large entirely under the
original plan Of reorganization. This re-
suited, Mr.. Ledyard declared. In amend
fAfa AAN HiulA ny AhINlltI ulhNIlpullnk tnt
holdings OF that company and going into
"a point N my opinion far beyond the
requirements OF the law"
Mr. Ledyard cndeavored to convince
the court that the reorganization pro-
posal would be effective and legal by dis.
tributing I'm dividends 10 the stockholders
entitled thereto, securities of subsidiary
companies Of the American Tobacco COM
pany, by the formation OF new companies
and selling thereto substantial part OF
the business OF the defendant company In
return for securities OF the new com
panies and by the sale OF property and
business for cash. The plan. he said
carefully guards the stockholders interests
and absolutely prohibits any stakeholder
acquiring any more than his just proper
ton In the companies proposed. That
the plan was proposed IN good faith. Mr..
Ledyard assured the court and he asked
the courts approval OF the scheme.
Attorneys for BondhoIders.
Following Mr.. Ledyard's statement
Morgan J. oBrlen appeared ION behalf
Of a majority OF the per cent bondhold-
ers Of the American Tobacco companies.
lie announced that he was instructed by
those bondholders to approve OF the re-
organization plan submitted by the sde-
PENDANTS Viewed from any standpoint,
Mr.. O'Bren said, the plan was entitled
TO approval by the court.
Joseph II. Choate appeared on behalf
of the 4 per cent bondholders OF the
Tobacco company. The bondholders' as
ISOLATION holds on deposit more than t2j.-
00lO0O OF bonds Mr.. Choate said the po-
sition Of these bondholders was peculiar,
representing the innocent investors and
the public These bondholders he said.
had agreed TO the principal points OF
the proposed reorganization.
Mr.. Choate said his clients had in
structed him to appeal FOR approval OF
the scheme substantially as It is"
There was filed with tho court today
the brief in support OF objections TO the
reorganization plan by the National Cigar
Lear Tobacco association. the Cigar Man
ufacturcrs' association and the Independ-
6nt Tobacco Salesmen's association. The
brief was filed by Louis d. Brandeis and
Felix H. Levy, who later win be heard
by the court This protest sets forth
that the proposed reorganization OF the
American Tobacco company as between
the American Tobacco company. Leggitt
& Meyers Tobacco company. the Lorillard
Tobacco company and II. O. Reynolds
Tobacco company us continuation Of
the Illegal combination" and would re-
suit In four monopolies instead OF one"