Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1911-12-13

the different kinds Of business will
be distributed between two or more
companies with n division ~ The prom.
,nent brands in the same TOBACCO pro.
duets, 80 as to make competition not
only possible but necessary. Thus the
smoking tobacco business Of the eoun.
try is divided so that the present in.
dependent companies have 2l.39 per
cent, while the American Tobacco
company will have 33.0s per cent, the
hggctt 4 Meyers zoos per cent, the
Lorillard company 22.se per cent, and
the Reynolds company 2.66 per cent.
The stock Of the other thirteen com.
panies, both preferred and common,
has been taken from the defendant
American Tobacco company and has
been distributed among its stock.
holders. All covenants restricting
competition have been declared null
and further performance Of them has
been enjoined. The preferred stock
Of the different companies has now
been given voting power which was
denied IL under the old organization.
The ratio OF the preferred stock 10
the common was as Is 20 40. This
constitutes very decided change in
the character Of the ownership and
control Of each company.
In the original suit there were
twenty-nine defendants who were
charged with being the conspirators
through whom the Illegal combination
acquired and exercised its unlawful
dominion. Under the decree these de.
PENDANTS will hold amounts of stock
in the various distributee companies
ranging from II per cent as max.
imum 10 2sls per cent as n minimum
except IN the case Of one small com.
pany, the Porto Riean Tobacco com.
pany, in which they will hold ~ per
ccut. The twenty nine individual de.
PENDANTS are enjoined for three years
from buying any stock except from
each other. and the group il thus pre-
vented from extending it's control
during that period All parties 10 the
suit, and the new companies who are
made parties. are enioined perpetual.
! ~ from in any way effecting any
combination between any Of the com.
panies in violation of the statute by
way Of resumption of the old trust.
Each of the fourteen companies is en-.
joined from acquiring stock in any
OF the Others. All these companies are
enloincd from having common di.
rectors or offices, or common buying
or selling agents, or common offices,
I or lending money 10 each other.
Size of New Companies.
Objection was made by certain in.
dependent tobacco companies that this
settlement was unjust because IL left
companies with very large capital in
active business, and that the settle
mcnt that would be effective 20 nut
all on an equality would be a divi.
sion Of the capital and plant Of the
trust into small factions in amount
more nearly equal 20 that Of each Of
the Independent companies This con.
tention results from misunderstood.
ing of the antitrust law and its pur.
pose. N is not intended thereby 10
prevent the accumulation of large
capital in business enterprises in
which such combination can secure
reduced cost of production, sale, aud
distribution. II Is directed against
such an aggregation of capital only
when its purpose Is that Of sitting
competition. enhancing or controlling
prices, and establishing monopoly.
II we shall have by the decree de.
feated these purposes and restored
competition between the large units
into which the capital and plant have
been divided, we shall have accom-.
plished the useful purpose of the
statute.
Confiscation Not the Purpose of the
Statute.
IL Is not the purpose of the statute
TO confiscate the property and capital
Of the offending trusts. Methods of
| punishment by fine or imprisonment
OF the individual offenders, by fine
Of the corporation or by forfeiture Of
its goods in transportation, are pro-
vided, but the proceeding in equity is
specific remedy to stop the opera
ton OF the trust by injunction and
prevent the future use Of the plant
and capital in violation Of the statute.
Effectiveness Of Decree.
i venture 10 say that not In the
history OF American law has de.
cree more effective for such a pur.
pose been entered by court than
that against the Tobacco Trust. As
Circuit Judge Moves said in his iudQ.
ment approving the decree;
1.-THE extent TO which IL has been
necessary 20 tear apart this combina.
ton and force II into forms with the
attendant burdens ought 10 demon.
strate that the Federal antitrust
statute IL a drastic statute which ne.
complishes effective results; which 90
long ms IL stands on the statute books
must he obeyed, and which can not
be disobeyed without mourning far.
reaching penalties. And, on the 9th.
or hand, the successful reconstruction
Of this organization should teach that
the effect Of enforcing this statute
Is not 20 destroy, but TO reconstruct;
not TO demolish, but 10 re-ereate in
accordance with the conditions which
the congress has declared shall exist
among the people Of the United
States
Common Stock Ownership.
II has been assumed that the pre-
cnt pro rata and common ownership
IN all these companies by former
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