The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1911-12-07

and sale of chewing and smoking 70
! bacco aud cigars. The former one III
foil company is divided into two, one
Of $4,000 capital and the other Of
4 100000. The one snufr company Il
divided into three companies. one Will
a capital Of $4,000 another with O
capital Of ss.000.000 and n third with
4 capltal OF ss000.0o0 The licorice
companies are two. one with q capital
Of S5.75S,300 and another with capt
tal Of S2,000000 There Is also the
Rntlsh.AmerIcan Tobacco company, q
British corporation, doing business
pbroad with a capital Of s26.0eo,000,
she Porto Rican Tobacco company,
with cnpital OF Si,so00oo, and the
corporation OF United Cigar Stores.
with capital Of S0,o0000o
Under this arrangement each OF the
different kinds Of business will be dis.
trlbuted between two or more compa.
nieS with a division OF the prominent
brands In the same tobacco products,
50 as 10 make competition not only
possible. but necessary. Thus the
smoking tobacco business OF the coun-
try is divided so that the present In.
dependent companies have 21.30 per
rent, while the American Tobacco com.
pany viii have 33.0S per cent, the Lig.
gett & Meyers 2005 per cent. the Loril'
lard company 22,S2 per cent and the
Reynolds company 2.G0 per cent. The
stock of the other thirteen companies,
both preferred and common, has been
taken from the defendant American
Tobacco company and has been dis.
tributed among its stockholders. All
covenants restricting competition have
been declared null and further per-
formance Of them has been enJoined
The preferred stock OF the different
companies has now been given voting
power which was denied 1t under the
old organization. The ratio of the pre-
ferred stock to the common was as rs
to 40 This constitutes very decided
change in the character of the owner,
ship and control of each company.
In the original suit there were twen-
ty-nlne defendants. who were charged
with being the conspirators through
whom the Illegal combination acquired
and exercised its unlawful dominion.
Under the decree these defendants win
hold amounts Of stock In the various
distributee companies ranging from Al
per cent as maximum to 2Sh per
vent as minimum, except In the case
Of one small company. the Porto RlcaD
Tobacco company. In which they will
hold 40 per cent. The tweDty-nine In.
llvldual defendants are eDjolned for
three years from buying any stock ex-
aept from each other, and the group Is
thus prevented from extending It's con.
troll during that period All parties to
the suit and the new companies who
are made parties are enjoined perpet-
nally from In any way effecting any
combination between any Of the com.
panles in violation OF the statute by
way Of resumption OF the old trust.
Each Of the fourteen companies is en-
joined from acquiring stock in any Of
the others. All these companies are
enjoined from having common dlrec-
tors or officers. or common buying or
selling agents, or common Offices. or
lending money to each other
Size Of New Companies.
Objection was made by certain In
dependent tobacco companies that this
settlement was unjust because 1t left
companies with very large capital in
active business and that the settle
ment that would be effective to put all
on an equality would be division Of
the capital and plant Of the trust into
small fractions I'm amount more near
ly equal TO that Of each Of the indie
pendent companies This contention
results from misunderstanding of
the antitrust law and its purpose. II
is not intended thereby to prevent the
accumulation OF large capital In bust.
ness enterprises IN which such a COM
can secure reduced cost Of
sale and distribution. II
is directed against such an nggrega-
tlon Of capital only when its purpose
IS that Of sitting competition, enhanc
Ing or controlling prices and establish
ing monopoly IL we shall have by
The decree defeated these purposes
md 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
confses.ion Not the Purpose Of the
Statute.
II Is not the purpose Of the statute |
TO conhscate the property and capital
Of the offending trnsts. Methods OF |
by fine or Imprisonment, !
Of the Individual offenders. by fine Of |
the corporation or by forfeiture Of its
goods ia transportation are provided.
but The proceeding IN equity is o spe-
ciGc remedy % 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 decree
more effective for such purpose been
entered by a court than that against
The tobacco trust AS Circuit Judge
Noyes said in bis Judgment approving
he decree:
'T'be extent 70 which II has been
necessary 70 tear apart this conbina.
ion and force II into new forms with
he attendant burdens ought 70 demon.
'traie that the federal antitrust statute
. drastic statute which aeeornpllshes
Effective results. which 20 long as II
stands On The statute books must be
,beyed and which cannot be disobey.
q without lncurrlng farreaehing pen