New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-31
GOVERNMENTS ANSWER
To TOBACCO PLAN FILED
WiCkerSham Demands Right to
Ask Further Relief in Five
Years, if Necessary.
URGES CIGAR STORES SALE
No officer of One Corporation to
Serve Acknowledgment Pro-
tests Against Governments s
Demand-Securities Steady.

The governments answer to the re-
organization plan of the American To-
bacco Company was filed yesterday at
the direction Of Attorney General Wick
ersham, during the first hearing on the
plan. held in the United States Circuit
Court. before judges Lacombe. Coke,
Noyes and Ward. The principal feature
of the answer was a demand that the
government should have the right TO ap-
ply to the court for further relief within
five years upon showing that any plan
approved by the Judges had not created
the conditions outlined in the decree Of
the Supreme Court.
Lewis Cass Ledyard. OF counsel for the
American Tobacco Company, said there
could be no doubt that the plan goes far
beyond a fair Interpretation OF the Su-
preme Court decision"
Attorney General Wickersham. in the
answer, expressed this demand Of the
government as follows:
Obviously the effect or any plan OF dis
integration Submitted 10 the consideration
Of the court must be more or less a matter
Of conjecture, and IL is impossible for the
court to determine in advance whether or
not q plan which proposes To restore COM
petitiye conditions Will actually accomplish
the purpose intended.
Any decree ascertaining and determining
upon a plan should therefore reserve to
the government the right. at any time
! within FIVE years from date OF entry, 10
apply 70 the court for other and further
relief upon showing that, az a matter OF
ating a new condition which shall be hon
estly In harmony with and not repugnant
to the law.
TO tnat end. as well rs for other purposes
! hereinafter expressed each and every
OF the new corporations proposed TO be or
! ganized for the purpose OF carrying out
| the plan should be brought IN as "a party 70
! this suit. In order 10 be subjected 10 the
| jurisdiction OF the court and bound by It's
decree.
As told exclusively in The Tribune
several weeks ago. this condition Of
supervision was indicated by Attorney
General Wickersham in the course Of
the private conference that preceded the
formulation Of the plan.
Contest as to Supervision.
This demand was vigorously opposed
by counsel for the American Tobacco
| Company as an attempt at government
! through the courts, but Mr.. Wickersham
adhered to the provision as one that was
essential. in that 1t would enable the
government to bring into court for re-
view. without long delay. any plan that
might prove rCpugnant TO the law IN It's
| execution.
! Through counsel for the American
Tobacco Company, the various commit
ha1
iportunity yesterday to present TO the
court argument in support OF the plan
and while the legal representatives, Of
| the independent interests opposed TO the
plan offered their criticisms, the govern
Iments side Of the case will not be
reached until to-day.
| Attorney General Wickersham. James
IC. McReynolds, special counsel for the
government in the case. and Edwin p.
/ Grosvenor. Assistant Attorney General,
will be heard after counsel for the
American Tobacco Company have had
their say.
The governments answer. filed yester-
day. did not contain general opposition
| to the plan, but expressed certain condi-
tions 10 the approval of the plan sub
Imitted. or any other plan, that should
| be imposed by the court. The most dras-
tic suggestion was that concerning the
stock ownership of the United Cigar
Stores Company. which read as follows:
! That the. stock Of the United Cigar stores
! Company be sold and distributed 10 partles S
| other than the twenty-nine Individual de-
| PENDANTS or others or the common STOCK
! holders OF the American Tobacco Company, p,
J 10 the end that the corporation De enureiy
| separated from any connection with the
! corporations 10 when the pIopeIuCs anu
/ businesses now in the combination are 10
| be distributed.
! Another condition required by the gov
ernment was that during period Of not
! less than hve years no one OF the co.,
poratons among which the properties
and businesses now in the combination
| were To be distributed. should have any
officer or director who was also an of
| ncer or director In other OF such cor
| poratons.
Small Courtroom Crowded.
| The hearing before the four judges
who will pass upon the reorganization
! plan Of the American Tobacco Company
attracted an attendance that proved too
) large for the small courtroom. Counsel
for the various interests found them
selves engulfed in a crowd that took up
every available space. James Il. Duke,
president of the American Tobacco Com
pany, Percival S. Hill. its vice presl-
dent, and George j. Whelan. president
Inntinu.d an ss,noI uuUe