The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-05-30
1t Is Again Applied by the U. s.
Supreme Court.
In the Verdict of Guilty Found
Against Tobacco Trust.
1T MUST GET RIGHT.
Six or Eight Months Given in
Which to Change Plan.
Justice Harlan Once More Dis
sents From the Majority.

The tobacco trust decision is charac-
terized by Attorney General Wicker
sham as a most comprehensive and
sweeping victory for the government"
The trust is held to be a combination
in restraint of trade-a monopoly IN
violation of law.
The decision affects 65 American oor-
porations, two English corporations and
20 individual defendants.
An opportunity is given the trust to
disintegrate and recreate a condition
Of transacting business not repugnant
to law.
IT, at the end of six or eight months,
the corporations fail to bring them
selves within the law, a receivershlp
and dissolution by court decree will
follow.
The trust is held to have been guilty
of intimidation and clearly to have
shown a purpose to stifle competition.
Chief Justice White announced the
decision which was practically unani-
mouse, although Justice Harlan dis
sented on several points.
AS in the Standard Oil case, Justice
Harlan resents the application of the
rule of reason" to the Sherman anti
trust law.
The court, having held the defendant
corporation guilty of conscious wrong
doing, Justice Harlan "is not at all
anxious" to perpetuate any new combi-
nation growing out of them.
Washington, May 30.-The govern
ment won a sweeping victory over the
so-called tobacco trust" when the su-
preme court of the United States held
the American Tobacco company and it's
allied corporations to be operating in
violation of the Sherman antitrust
| law.
| By directing that the combination be
| forbidden the privilege of Interstate
| commerce or be placed in the hands of
| a receiver unless 1t disintegrateS In
! harmony with the law within six or, at
the most, eight months, the court is re-
| garded to have dealt with the tobacco
corporations more drastically than with
the Standard Oil company of New Jer-
sey. whose dissolution was ordered two
weeks ago.
| Both tire first and second sections of
tie Sherman antitrust law have been
violated by the so-caIled wrongful and
unlawful interstate commerce, in the
eyes of the court, but the company has
attempted to monopolize the tobacco
| business to the injury of the public and
! of it's competitors.
| While the decree was regarded as un-
usually severe, at the same time thero
was touch of leniency in not making
| the combination an outlaw now" Ths
| various elements of the combination
| are to be given an opportunity, under
| the supervision of United States circuit
court for the southern district of New
York, of recreation so that there may be
brought about "a new condition which
shall be honestly in harmony with and
not repugnant to the law"
Harlan Doesn't Agree.
The opinion of the court was an
nounced by Chief Justice White. who
also delivered the opinion of the court
in the Standard Oil case. The entire
court agreed that the tobacco combi-
nation violated the Sherman antitrust
| law, but Associate Justice Harlan dis
sented from the repeated Interpretation
of the Sherman antitrust law so as to
call for the application of the "rule of
reason" in determining what restraints
of trade were forbidden by the act. In
this respect the division of the court
was the same as in the Standard Oil
case.
Justice Harlan also took issue with
the rest of the court as to the re-
organization of the tobacco company,
saying that he found nothing in the
record which made him ''at all anxious
to perpetuate any new combination
among these companies which the court
comedies at all times exhibited a con
scious wrong DOING
The court reiterated its determination
to follow the rule of reason in de-
termining what restraints of trade vio-
late the Sherman antitrust law. Chief
Justice White explained at length the
decision OF the court IN the Standard
Oil case. but did not qualify the rea-
soning in that case so a to harmonic,
| it in any particular with the dissenting
views expressed in that case by Assoc
ciate Justice Harlan and other critics
of the decision.
1t is regarded as setted that the
rule of reason" will prevail in the
courts of the land in their interpreta-
ton of the Sherman antitrust law ljn-
| til at least the personnel of the su-
(Confiuued ~, pa 90 r1iva