Yellowstone monitor. [volume] (Glendive, Mont.) 1905-1928, 1911-12-07

ing company, as In the case OF the
IStandard Oil trust The main company
twas the American Tobacco company,
Ia manufacturing, selling and holding
Icompany. The plan adopted to De
Estroy the combination and restore COM
Ipetitfon involved the redivtsion OF the
lcapItal and plants of the whole trust
between some Of the companies CON
lstituting the trust and new companies
organized for the purposes Of the de
cree and made parties to 1t and num-
bering, new and old, fourteen.
Situation After Readiustnsnt.
The American Tobacco company
(old), readjusted capital $92,O00,OOO;
the Lfggett & Meyers Tobacco company
new. capital $67 100000; the 2. sI4oril-
lard company new, capital $4,000
OOO and the r. J. Reynolds Tobacco
company (old), capital sL525,O00, are
chiefly engaged In the manufacture
and sale OF chewing and smoking to-
bacco and cigars. The former one tin
foil company is divided into two, one
OF 1926, 200 capital and the other Of
$4OO, 900. The one snuff company Is
divided into three companies, one with
q capital Of $15. 900 O00 another with
capital OF SS,0OO00O and a third with
a capital OF S8,Ooo,O00. The licorice
companies are two. one with a capital
OF S5,75s.3OO and another with a CAPT
tai Of S2,0O0.O00. There is also the
British-American Tobacco company, a
British corporation. doing business
abroad with a capital OF $26,o00.O0O,
the Porto Rican Tobacco company,
with capital of s1.eOOOOO, and the
corporation OF United Cigar Stores,
| with capital OF S9,0OO.O0O
| Under this arrangement each OF the
different kinds OF business will be dis
/ tributed between two or more compa
/! MES with division Of the prominent
brands In the same tobacco products,
SO as 60 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 21.39 per
cent, while the. American Tobacco COM
| pany will have 33.o8 per cent, the Lig
| gett & Meyers zoos per cent, the Loril
| lard company 22.S2 per cent and the
| Reynolds company 2.66 per cent. The
| stock Of the other thirteen companies,
| both preferred and common, has been
taken from the defendant American
| Tobacco company end 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 it under the
I old organization. The ratio OF the pre-
ferred stock to the common was as IS
| TO 10. This constitutes a very decided
change in the character Of the owner
ship and control Of each company.
+ In the original suit there were TWEEN
ty-nine defendants. who were charged
| with being the -consplrators through
Izwhom the illegal combination acquired
and exercised it's unlawful dominion
Under the decree these defendants viii
hold amounts OF stock in the various
lsdistrfbueee eompa nies ranging from II
per cent az maxiInum TO, 2S1a per
centEas minimum. except In. the case
OF one small company the, Porto RieaA
Tobaneoi company. In which they wiz
hold per cent. The tWenty2nine In.
diyidnaI defendants senioined for
three years from buying any stocKsex-
tsept from each other, and the grou d lis
thus prevented from e1tand linz It's con
troll during that period. All parties to
the suit and the new companies who
are made parties are enjoined perpet-
uaIly from In any way effecting any
combination between any of thes.eon
panies In violation OF the statute by
/ way OF resumption OF the old trust.
Zach OF the fourteen companies is en-
joined from acquiring stock III any OF
the others. All these companies are
eniofned from ha wing common direc
Iitorss or officers, or common buying or
selling agents. or common Offices, or
lending money to- each other.
Size of Nsat Companies.
/ Objection was made BY certain in
ASpsAdCAt loudSCo COMpaA1GS IAdS lAAs
settlement was unjust because 1t left
companies with very large capital in
active business and that the settle
n1ent that would be effective TO put an
on an equality wouldober a. division Of
the capital and plant OF. the trust into
small fractions in amount more near.
" equal 10 that Of each Of the inde-
pendent companies. THIS contention
results from 9. misund nderstanding Of
the nti-trustaiaw ana It's purpose. IL
is not intended thereby to prevent the
accumulation OF large. capita. In b1lsi4 l4
ness entea'pris Ii which such ascorn-
nlnaEton can secure reduced cost Of
production. sale and dlstrib q
IS directed against such an aggregga7
don of capital only when It's purpose
is that OF atifing competition. enDans
Ing or and
ing monopoly. f we shall have by
the decree defeated these purposes