The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-05-30
OPINION REGARDED
AS GREAT VICTORY

WASHINGTON. May c9.-Thc govern
ment today won a sweeping victory over
the so-callcd Tobacco trust when the
supreme court Of the United States held
the American Tobacco company and us
allied corporations 20 be operating in Nio-
la ton of the sherman anti trust law
BY directing that tho combination be
forbidden the privilege OF Interstate com
merce al be placed in the hands OF re
,eiver unless il disintegrateS in harmony
with the law within SIX OF at the most
eieht months. the court is regarded TO
have dealt with the tobacco corporations
more drastically than with the Standard
Oil company of New Jersey. the dissolu-
tlon of which was ordered two weeks
ago.
Both the first and second sections OF
The sherman antitrust law have been
violated oy the so-callcd tobacco trust,
according TO the court Not only has ~
restrained wrongfullV and unlawfuny IN
terstate commerce in the eyes oi Inc
court. but II has attempted TO monopolize
the tobacco business TO the injury OF the
public and OF its competitors.
While the decree was regarded as un-
Usually severe. AT the same time there
was touch of leniency in not making
the combination an outlaw nov, =.
fho various elements OF tie cpmbi-
Cauon arc la he given an opportunity.
under IN" supervision Of the United
stole: circuit court for the northern dis
I.t,l Ct Sew York, OF recreation so that
,bcr ,rs, be brought about "a new con-
T. ton. which shall he honestly IN har-
,'"ur with and rot rerugnant 10 lhe
law.
Opinion by Chief Justice.
The opinion Of tie cour, was deliv-
deliveries the cpinicn OF the court in the
standard Oil case. The entire court
aEieei that The tobacco combination vio-
ial"d The Sherman antitrust law, but
Justice Harlan dissented from the re-
peaied Interpretation OF the Sherman
anti trust law as TO call for the APP
pliCatiur OF the rule Of reason in de-
ie.minins what restraints of trade were
forbidden by the act. In this respect
The division Of The court was the same
as in the Standard on case.
Justice Harlan also took Issue with the
rest of the court as To the reorsanizs
ton OF the tobacco company, saying that
he had found nothing In the record which
made him AT al anxious To perpetuate
any new combination among these com
panies which tine cour, comedies at al
times exhibited conscious wrongdolng.
The court reiterated its determination
10 follow the rule of reason in deter
mining what restraints of trade violate
the Sherman antitrust law. Chief JUS
lice White explained Al length the de-
cision of The court in the Standard OH
case. but did not qualify the reasoning
in that ease so as 10 harmonic il in any
particular with the dissenting views ex-
pressed in that case by Associate Justice
Harlan and other critics of the decision,
Path FOR Courts to Follow,
Tonight il is regarded as settled that
the rule OF reason win prevail in the
courts OF the land In the Interpretation
Of the Sherman antitrust law. at least
until the personnel OF the supreme court
greatly changes or the Sherman anti
trust law is amended
In reality the decision was nothing less
than deliberate exemplification OF the
application oi the rule OF reason to
''undisputed facts.
From the date of the organization OF
the first combination, the court found
that there was a purpose TO acquire do
minlon and control OF the tobacco trade,
not by the mere eXertion of the ordinary
rights To contract and to trade, but by
methods devised in order 10 monopoize
the trace by driving competitors out of
business.
This purpose was carried out ruthless
ly. according so the court upon the as
sumption that 10 play upon the cupidity
sihle. Such action. viewed in the light
OF reason was regarded by the court
as viola tive Of the law.
On practically every point on which
the government appealed from the de-
cision OF the lower court il scored a vic
tory today.
Government Wins It's Points.
Tn the first place. James r. Duke and
the twenty eight other Individual defend
ants are held 10 be parties TO the unaw-
ful combination instead of being freed
from further responsibility in the case as
directed by the court below.
instead Of dismissing the bill as to the
Imperial Tobacco company. the so-called
British trust. and as TO the British
American Tobacco company, the creature
OF the two parent tobacco trusts" these
two combinations were held to be CO.
operators IN the unlawful combination,
So, too. was the United Cigar Stores
company. retail organization with
stores through the country
The court confessed that great Difficult
ties had heen encountered In the consid- :
Grafton OF the case because OF the many
new aspects OF the Sherman antitrust