Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-10-31
Gnycrnmcnt TiIcs AnsMcr.


lhc governments answer TO the ro-
organization plan proposed by tho
American Tobacco company and co.
defendants In the governments anti
trust suit.
The attorney general, after roferr-
Ing TO the directions Of the supreme
court TO restore competitive condl-
tons says;
OBVIOUSLY the effect OF any plan
OF disintegration submitted TO the
consideration of the court must be
more or less n matter OF conjecture
and It is impossible for the court to
determine In advance whether a plan
which proposes 10 restore competi-
tive conditions will actually accom-
plish the purpose intended.
Regarding Future Plans.
ANY decree determining upon n
plan should therefore reserve to the
government the right at any time
within five years from the date OF
entry, TO apply TO the court for other
or further relief upon showing that.
as a matter Of fact, such plan has
not resulted in creating new con-
dition which shall be honestly In har-
mony with and not repugnant to the
law.
"To that end each Of the new COR
porations proposed to be organized
for the purpose Of carrying out the
plan should be brought in ms a party
to this suit in order TO be subjected
to the jurisdiction Of the court and
bound by its decree"
Conditions for Reorganization.
The attorney-general asks that
whatever plan be adopted, it is sub
iect to the following conditions, brief
~ stated:
"The corporations among which
the properties and businesses in the
combination are to be distributed for
period of five years shall not nave
any officers or directors in common.
These companies shall not have
any stock interest in each other.
They shall not employ the same
agencies for the purchase Of leaf to-
barco or other raw materials, or for
the sale Of tobacco.
"They shall not retain or employ
the same clerical or other organiza-
ton, or occupy the same offices,
Dissolution Must BE Real.
mo one of them shall hold capital
stock in any other corporation. any
part of whose stock is also held by
any of the other corporations among
which the properties of the combina-
ton are distributed.
ITO the end that the twenty-nine
individual defendants in this suit"
the attorney general continues. "shall
not Increase their control over any of
the corporations among which the
properties and businesses now in the
combination are to be distributed,
pursuant to the plan, that such de-
fendanas be severally enjoined from,
at any time, within five years from
the date of the decree, acquiring, di-
rectly or indirectly, the legal or equit-
able ownership of any amount of
stock in any one said corporations in
addition to the amounts which they
would respectively hold I'm, and when,
the plan shall be carried out as pro-
posed
Respecting Capitalization.
Respecting capitalization of the
new companies, the attorney-general
says:
The questions of the capitaliza-
tion Of the various corporations
among which it is proposed to dis
tribute the properties and businesses
now in the combination, as to the dis
of assets, as between prefer
red stockholders and common stock
holders; and as to the amounts Of
fored to be paid or distributed to the
holders Of bonds OF either class or
preferred stocks are submitted to the
court as matters concerning The
stockholders and corporations and
the bondhoders, the government be-
Ing concerned merely with the dis
of an Illegal combination
and the reorganization Of competi |
tive conditions under such circum-
stances and with such safeguards as