Perth Amboy evening news., 1911-05-31
WILL DISSOLVE
TOBACCO TRUST
Supreme Court Decision is
against the Cooperation.

Washington, May 3t.-In holding the
American Tobacco company and Its
subsidiaries a monopoly In restraint of
trade, forbidden by the Sherman anti
trust law, the supreme court of the
United States returned the case to the
circuit court Of the southern district
of New York that the court below may
aid and supervise the companies re-
organization.
Six months, with possibly sixty days
more. is given for the trust to reform
its business 30 that 1t may be con
Quoted In accord with law. The tudg-
ment of the court was rendered by
| Chief Justice White. Eight of the
nine judges Joined In the decision.
| AS In the Standard Oil case, and for
| similar reasons, Justice Harlan dis
| scented.
In order to enter such a decree 1t
became necessary for the supreme
| court to reverse and remand the case
Of the federal court In New York.
The decision Of the supreme court goes
much farther than that Of the lower
tribunal. 1t includes within the con
| demnation Of the decree the twenty
nine individuals named In the govern
ment's bill Of complaint, the two Eng
lish corporations, the British-Ameri-
can Tobacco company and the Impe-
| rial Tobacco company, and also the
United Cigar Stores company. Chief
Justice White, who read the opinion,
held that the circuit court Of appeals
had erred In Diminishing the govern
individuals and the foreign corpora
lions and also In not granting the gov,
ernment's prayer and including within
the decree the United Cigar Stores
company.
In brief, the supreme court complete
iy sustained all Of the vital points con
tended for In the original bill Of com
plant filed by the government.
One Of the most important effects OF
the enlarged decree is that 1t makes
possible a criminal action against the
twenty-nine individuals named In the
governments original bill Of COM
plant. These defendants nov stand
In exactly the same attitude as John
D. Rockefeller and his associates,
whose prosecution under the criminal
statutes Is now being urged In the sen
| ate In connection with the Standard
OIL case.
The defendants include James B.
D.Lo Cof1h ~ ny1o foo-otuoI Chill
George Arents, Paul Brown, Oliver Fl.
Payne, Thomas F. Ryan, William 81.
McAlister, Anthony N. Brady, Benja-
mrT \. A=-Esags SEeTS S557 II
D. Kingsbury, Pierre Lorillard, Rufus
l.. Patterson, Grant D. Schley and
Williamson W. Fuller.
The tobacco trust Is to have six
months In which to put its house In
order and to reorganize in d way that
will comply with the law. Meanwhile
the trust Is enjoined from taking any
further steps to enlarge Its powers or
committing any further actions that
are unlawful. The lower court is au
thorized in its discretion to add sixty
days to the six months period. In the
| event Of the failure Of the defendants
to comply with the law In that time
| the court is directed to proceed by In
junction or, II necessary, by the ap-
pointment Of a receiver to accomplish
the reformation of the American To
bacco company and its subordinates
and its associates into an organization
that will square with the law. The
opinion of the court vas unanimous
except for a dissent by Assistant JUS
tee Harlan. The venerable Justice
again voiced his protest against the
action Of the majority Of the court In
constituting the law '1n the light OF
reason" He characterized the action
Of the court as "usurpatien OF the Ju-
dietary" and INDUCED n other en-
hattie statement. that were little less
than sensational.
Chief Justice White In the course OF
the opinion calculated the Sherman
antitrust law, set forth In the Stand
ard Oil decision. This phase Of the
tobacco trust opinion was of more
vital interest than the findings of fact.
The chief Justice in his opinion con
tends that the rule of reason" as ap.
piled IN the Standard Oh case, has
been generally misunderstood.
"We took nothing out Of this statute
by the rule Of reason" said the CHIEF
Justice. I'VE gave to that statute
vivifying Potentially no honest mar
may fear"
The chief justice added further thai
a too liberal construction of the act
would be suicidal so far as Its mair
object was concerned. He contende6
that an attempt to apply the letter Of
the Sherman antitrust law to the pres
ent case would In fact have resulted
In the escape of several Of the assoct
ate companies which have been includ
ed through an Interpretation of the
law In the light of reason.