The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-12-06

| different kinds Of business win be dis
| tribused between two or more compa-
mics with q division Of the prominent
| brands In the same tobacco products.
| 30 as to make competition not only
| possible but necessary. Thus the
smoking toba eco business of the coun-
| try il divided SO that the present in
| dependent companies have 2l.SS per
cent. while the American Tobacco
Company viii have SS.0s per cent. the
Li9Rett T. Meyers a0.o5 per cent. the
Lortllard Company c2s2 per cent. and
the Reynolds Company 2.s6 per cent.
The stock OF the other thirteen COM
panies. both preferred and common.
has been taken from the defendant
American Tobacco Company ard has
been distributed among ifs stockhold-
ers. All covenants restricting COMPETE
ton 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
II under Tho old organization. The
ratio Of the preferred stock to the COM
mon was as IS to 40. This constitutes
Very decided change In the charac-
ter 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 combina-
ton acquired and exercised It's I'M
lawful dominion. Under the decree
these defendants Will hold amounts
OF stock IN the various distributee
companies ranging from II per cent.
rs maximum to 20 1-2 per cent. as
minimum. except in the case of
f.Y n
Tobacco Company. in which they will
hold Is per cent. The twenty nine
individual defendants are enjoined
for three years from buying any stock
except from each other. and the
group II thus prevented from extend
ing it, control during that period
All parties to the suit. and the new
companies who are made partieA ara
cnjoined perpetually from In any
way erecting any combination be-
tween any OF the companies In vto-
lation Of the statute by way of re-
sumption Of the old trust. Each OF
tho fourteen companies 10 enjoined
from acquiring stock In any OF the
others. All these companies are en-
Joined from having common direc-
tors or officers. or common buying
or selling agents, or common Offices,
or lending money to each other.
Sire OF New Companies.
Objection was made by certain In
dependents tobacco companies that
this settlement was unjust because
IL left companies with very large cap
i&al In active business, and that the
settlement that would be effective
to put all on m equality would be
a division OF the capital and plant
Of the trust into small fractions In
amohnt more nearly equal 10 that OF
each OF the Independent companies,
This contention results from d mis-
understanding OF tho anti-trust law
and It's purpose. II 10 not intended
thereby to prevent the accumulation
Of large capital in business enter
prises in which such a combination
can ssscure reduced east Of proauc-
ton. sale and distribution. II y a.
rected against such an aEgre9ation
OF capital only when its purpose ID
that Of sitting competition, enhAnc-
ing or controlling prices. and estab-
fishing a monopoly. II We shall have
by the decree defeated these purposes
and restored competition between the
large units into which tho capital
and plant have been divided, we ahail
have accomplished the useful purpose
OF the statute.
Coniscatioa Not the Purpose II the
SI1tuG6.
II is not tho purpose Of the statute
TO confscatc the property and capt.
tai Of the offending trusts. Methods
OF punishment by fine or impris0n-
ment Of the individual offenders. by
fine Of the corporation or by forfeit
urc Of its goods In transportation,
are provided. but the proceeding In
equity 10 specific remedy. to stop
the operation Of the trust by In
junction and prevent tho future use
Of the plant and capital In violation
OF tha statute.
E1fect4veneee u DcCsUo.
venture to ray that not In the
history OF American law has = de-
cree more cffectivo for such, q pur-
pose been entered by court than
that against the TOBACCO Trust, A.
Circuit Judge Noyes aid ia hip judy
ment approving the decree:
'"The extent 70 which Il has been
necessary to tear apart this conn
blnation and force & into new forms
with the atteudant burdens ought 10
demonstrate that the NsAesua anti.
trust statute II drastic statuto which
accomplished effective reGulta; which
% long a. ~ stands en- the statute
- ~sxV \