The advocate. [volume] (Charleston, W. Va.) 1901-1913, 1911-12-07

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co products, so as to make competi-
ton not only possible bat necessary
Thus the smoking tobacco businsss
OF the 'countrytis divided. sosthat the.
present independent companies have
21.39 per cent, while the American
fobaCco Com pany7- win have, 33,0S-
per cent, the Liggett & Meyers zoos
per cent, the Lorillard Company
22.S2 per cent, and. the Reynolds
Company 2,66 ,pers cent The stock
gf the other thirteen companies,
both preferred and. common, has
been taken from { tho II defendant
American Tobacco Company and has
been distributed among it's stock
holders, All covenants restricting
have been declared null
and further performances. of them
have. been .enjoined. The preferred
stock Of, the different companies
has now be0q given voting power
which was dehied 1T under, the ol1
organization; The ratio Of the pre-
ferred stock as to the common was
as 70 to 0.#$This constitutes a very
decided change in the ownership and
control of each company. =
In, the original suit there were
twenty-nine defendants ( who we're
charged with being the conspira,
tors through whom the illegal COM,
bination> acquired and exercised it's
unlawful dominion. Under the de.
cree these defendants will Hold
amounts OF stock In the various
idistributee companies ranging from
IL per cent as maximum to ,28! Ia
per cent as q minimum, except In the
case Of one small company,.y the
Porto RicaA Tobacco Company. in
which they will hold As per cent.
The twenty-nine individual defend
ants. are enjoined for three yea. & &
from buying any stock except 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
perpetuaHy from in any Way effect
Ing any combination between any of
the companies in violation of the
statute by way of resumption Of the
old trust. Each of the fourteen
companies is .enjoined from acquir-
ing 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 offices, or lending money
to each other -
- Size of New Companies.
Objection was made by certain
independent tobacco companies that
this settlement -was-unjust because
1T left companies with a very large
capital in active business and that
the settlement to be effective to put
all on an equality would be divis-
ION OF the capital and plant of the
trubt into.+small fractions in amount
more nearly. equal to that of each
o,f the Independent companies. This
contention results from misunder-
standing Of the antitrust law and
its purpose. It is not intendent
thereby to prevent the accumulation
of large capital in business enter
prises in which such a combination
secures reduced cost Of prodnr
ton, sale and distribution. It is
directed against such an aggregation
of capital only when it's purpose IS
that Of sitting competition, enhanc-
ing or controlling prices, and estab-
fishing a monopoly. If we shall
have. by the decree defeated these
purposes and restored competition
between the large units into which
the capital and plant have been di-
;vtded, we shall have accomplished
the useful purpose Of the statute.
Confiscation Not the Purpose of the
STATUTE.
~-r4tis hottie purpose of the stat
-ute1te7 eonf4scate- the property afia
capital Of the offending trusts.
Methods of punishment by fine or
imprisonment of the individual Of
tenders, by fine Of the corporation
or by forfeiture Of It's goods in
are provided, but
the proceeding in equity is spe-
cific remedy to stop the operation of
the trust by injunction and prevent
the. future use of the plant and cap
ital in violation of the statute.
Effectiveness Of Decree.
l venture to say that not in the
american -law--4fese de
cree more effective for such pur-
pose been entered by court than
against the Tobacco Trust. AS Cir
cult Judge Moves said in his judy
ment approving the decree:
THE extent to which it has been
necessary to tear apart this combi-
nation and force it into new forms
with the attendant burdens. ought