Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1911-06-08
TOBACCO TRUST HELD
TO Be LAW VIOLATOR
Rule Of Reason" Applied by
Supreme Court to Another
Gigantic Monopoly.

Washington, May @.-The government
yesterday won a sweeping victory over
The so-called tobacco trust when the
supreme court of the United States hello
The American Tobacco company and its
allied corporations to be operating IL
violation Of the Sherman antitrust law.
BY directing that the combination be
forbidden the privilege of interstate com.
merce or be placed in the hands OF q
receiver unless 1t disintegrated within
harmony with the law in six, or at most
eight months, the court Is regarded to
have dealt with the tobacco corporation
more drastically than with the Standard
Oil Company of New Jersey. whose disco
luton was ordered two weeks 6
Both the first and second section Of the
Sherman antitrust law have been vio-
lated by the so-called tobacco trust, ac-
cording to the court. Not only has it re-
strained wrongfully and unlawfully inter-
state commerce In the eyes of the court,
but 1t has attempted to monopolize the
tobacco usine to the injury of the pub
lie and of it's competitors.
The court reiterated it's determination to
follow the .''rule of reason" in determining
what restraints OF trade violate the Sher-
man antitrust law. Chief Justice White
explained at length the decision of the
court in the Standard Oil case. but did
not qualify the reasoning in that case so
as to harmonic 1t in any particular with
the dissenting views expressed in that
case by Associate Justice Harlan and 9th.
er critics Of the decision.
1t Is regarded as settled that the "rule
Of reason Will prevail in the courts OF
the land in the Interpretation Of the Sher-
man antitrust act, until at least the per-
sonnet Of the supreme court greatly
changes or the Sherman antitrust law
is amended.
In reality the decision was nothing less
Il sv,nn n a - o.
application Of the ''rule OF reason to
'undisputed facts"
Thorough Going Monopoly.
From the date of the organization of the
first combination the court found that
here was q purpose to acquire dominion
ind control Of the tobacco trade, not by
The mere exertion OF the ordinary right to
contract and to trade, but by methods de-
sised in order to m%onopolize the trade by
driving competitors out of business.
This purpose was carried out ruthless
y, according to the court, upon the as
sumption that to work upon the theory
Or play upon the cup.dity OF competitors
would make success possible. Such
action. Viewed in the light of reason
vas regarded by the court as violative OF
he law.
On practically every point on which the
government appealed from the decision OF
the lower court 1t scored q victory today,
IN the first place. James E. Duke and the
q other Individual ~efendants were held
TO be parties to the unlawful combination
instead of being freed from further respon.
sibility in the case as directed by the court
below.
Instead OF dismissing the bill as to tn,
Imperial Tobacco company, the s~o-called
British trust, and as to the British Amer
lean Tobacco company, the creature Of
The two parent tobacco trusts. these two
corporations were held to be co-operator.
N the unlawful combination. So. too
was the United Cigar stores, a retail or
Eanization ~thrQughQut the country.