The Waxahachie daily light. [volume] (Waxahachie, Tex.) 1894-current, 1911-12-05

omnttNg teN&@es ass tsess
Fefwss nae tn fnll @emrsnf u 81
easss s~se tee. mH. " ssff uea rsF
ltsi sns shs esh.s n tssp eeN I've
csc ssur rsmNshs 70 sfvt8*e Nh'n
shsee CEN - sizes. ore ~ith rAt'Sai
ri tiAnua seH snwshes vlth cap
Tssl ri n aea. eea. sna q thita ~'h
capital ~ a zoe oen rss tieeflcs
companies ~. tee. ere eth e cap
l,sl ei o. .fss. 90 ana sna,hss ~Ah
esrlssl IT ti,eee Gee There ". s'se'
81. ar3,ish. Americas Tehseca eein'
yant. British corporation. aosns
business abroad with eApissl ~
sss,eno. evs. the Porte nicsn Tobsr.
ca company With capital "s
u sec, goo ana the corporation ot
United Cigar Ttot.s. with q esr'ssl
Of te.eco. goo Under thls arrange.
men, each sf the different klnds OF
business -ill be distributed between
tao or more companies. sith a di'
Vision ~ the prominent brands IN the
came tobacco products. 80 az 10 make
competition not only possible bui
necessary Thus the smoking tobse'
co business of the country is divided
80 that the present Independent com
ranIss have ?isa per cent, while the
American Tobacco company will have
ss.0s per cent. the Liggett and
Meyers zoos per cent. the Lorillard
company s2s7 per cent. and the
Reynolds company 2xe per cent The
stock OF the other thirteen companies
both preferred and common. has been
taken from the defendant American
Tobacco company and hss been DIS
tributed among It's stockholders. All
covenants restricting competition have
been declared null and further per
formance OF them has been enjolned
The preferred stock OF the different
companies has now been given vot'
ing power which was denied II under
the old organization. The ratio OF
tho preferred stock to the common
was A. rs to 40. This constitutes a
very decided change In the character
OF the ownership and control Of
each company.
In the original suit .hcre were TWEEN
ty.nine defendants who we're charged
with being the conspirators through
whom the illegal combination acquired
and exercised It's unlawful dominion.
Under tho decree these defendants
will hold amounts OF stock In the va
rtous Distribute companies ranging
from Al per cent. as a maximum to
e8h per cent MS minimum. except
IN the case OF one small company, the
Porto Rican Tobacco company. In
which they will hold As per cent. The
wenty nine individual defendants are
,njoined for three years from buying
my stock except from each other,
md the group Is thus prevented from
extending Its control during that pc
-tod. All parties to the suit. and the
new companies who are made parties.
are enJc!ned perpetualiy from in any
way cffecting any combination be-
tween any OF the companies In viola
ton OF the statute by way OF resump
ton OF the old trust Each OF the
fourteen companies Ia enio,ned from
acquiring stock in any OF the others.
All these companies are enjoined from
having common directors or officers.
or common buying or selling agents.
or common onices. 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 It left
with very large capital In
lctive business. and that the settle
nsnt that would be effective to put all
IN an equality would be division OF
he capital and plant OF the trust into
mall factions In amount more nearly
Equal TO that OF each OF the independ-
mt companies. This contention re-
'uits from q misunderstanding OF the
antitrust law and its purpose II 10
not intended thereby to prevent the
accumulation Of large capital In bust.
ness enterprises in which such com.
can secure reduced cost OF
sale and distribution II
In directed against such an aggrega-
ton Of capital only when It's purpose
IL that OF stifiing competition. enhanc-
ing or controlling prices and estab-
fishing a monopoly II we shall have
by the decree defeated these purposes
and 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.
connsoation Not tho Purpose Of the
II IL not the purpose OF the statute
to confiscate the property and capital
OF the offending trusts. Methods OF
punishment by nne or Imprisonment
OF the individual offenders. by fine OF
the corporation. or by forfeiture OF It's
goods in transportation. are provided.
but the proceeding In equity is a spe-
cifc remedy 10 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.
I venture to say that not In the his
tory OF American law has a decree
more effective for such purpose
besn entered by a court than that
a rsinst the Tobacco trust As Circuit
Judge Noyss said In his judgment ap.