Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1911-06-07
TOBACCO TRUST
IS HELD ILLEGAL
Government Wins Another Vic
tory in High Court.
is GIVEN SIX MONTHS GRACE

Drastic Federal Decision Follows Lines
Of OIL Case Rullng-concern De-
eiared to Be In Violation
Of Law.
Washington.-The United States Su.
preme court declared the American
Tobacco company, commonly called
the tobacco trust, is an unlawful
combination in restraint OF trade
and an attempt to monopolize the
manufacture and sale Of tobacco
Applying the rule of reason laid
down in the decision of the Standard
on case two weeks ago. the court
stamped the tobacco trust as a gross
example OF offense against the Sher-
man antitrust law.
BY directing that the combination
be forbidden the privilege OF inter
state commerce or be placed in the
hands of a receiver unless 1t disin-
tegrates in harmony with the law
within six. or at the most, eight
months. the court is regarded to have
dealt with the tobacco corporations
more drastically than with the Stand.
ard Oil company of New Jersey.
Both the first and second sections OF
the Sherman antitrust law have been
violated by the tobacco combine, &C.
cording to the court. Not only has 1t
restrained wrongfully and unlawfully
interstate commerce in the eyes Of
the court. but 1t has attempted to mo-
nopolize the tobacco business to the
injury Of the public and Of Ito COM
petitors.
While the decree was regarded as
unusually severe, at the same time
there was touch Of leniency In not
making the combination an outlaw
now" The various elements Of the
combination are to be given an op-
portunity. under the supervision OF
the United States circuit court for the
southern district of New York, of re-
creation. so that there may be
brought about "a new condition which
shall be honestly In harmony with and
not repugnant to the law"
The opinion Of the court was an
nounced by Chief Justice White. The
entire court agreed that the tobacco
combination violated the Sherman
antitrust law. but Associate Justice
Harlan dissented from the repeated
Interpretation Of the Sherman anti.
trust law 80 as to call for the applica-
ton of the rule Of reason" in deter
mining what restraints of trade were
forbidden by the act.
Justice Harlan also took issue with
the rest Of the court as to the reor.
ganization of the tobacco company.
saying he had found nothing in the
record which made him at all anxious
to perpetuate any new combination
among these companies which the
court comedies at all times exhibited
conscious wrongdoing."
The opinion held:
/. That the combination, in and Of
itself. rs well as each and all OF the
elements composing 1t. whether cor
porate or individual. whether consid-
cred collectively or separately, be de-
creed to be in restraint Of trade and
an attempt to monopolize and mon
opolization within the first and second
sections Of the antitrust act.
2. That the court below. In order to
give effective force to the decree in
this regard. be directed to hear tho
parties. by evidence or otherwise, as 1t
may be deemed proper. for the purpose
of ascertaining and determining upon
some plan or method Of dissolving the
combination and of recreating, out OF
the elements now composing 1t. a new
condition which shall be honestly In
harmony with and not repugnant to
the Law. j
8. That for the accomplishment Of
these purposes. taking in view the
difficulty Of the situation, period OF
six months is allowed from the receipt
Of the mandate. with leave. however,
in the event, in the judgment of the
court below, the necessities Of the sit.
uation require. to extend such period
to afurther time not to exceed go days.
4. That in the event, before the ex.
piration Of the period thus fixed, q
condition Of disintegration In harmony
with the law Is not brought about,
either as the consequence of the action
Of the court In. determining an issue
on the subject or in accepting q
plan agreed upon. 1t shall be the duty
of the court. either by way Of an in
Junction. restraining the movement Of
the products of the combination in the
channels Of interstate or foreign COM
merce, or by the appointment OF re-
ceiver. to give effect to the require
ments Of the statute.
Pending the bringing about of the
result. directed by the court, each and
all Of the defendants. individuals as
well as corporations. are to be re-
strained from doing any act which
might further extend or enlarge the
power of the combination, by any
means or device whatsoever.
Ever PesslmIstlc,