The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1911-12-09

dependent companies have 2l.30 per
cent. while the American Tobacco COM
pany will have BIOS per cent. the Lig-
gett a. Meyers 2O.05 per cent. the Lori.
lard company 22.s2 per cent and the
Reynolds company 2.6G per cent The
stock OF the other thirteen companies.
both preferred aud common. has been
taken from the defendant American
Tobacco company and has been dis.
tributed among It's stockholders All
covenants restricting competition have
been declared null and further per.
formance ~ them has been enjolned.
The preferred stock OF the different
companies has now been given voting
power which was denied IL under the
old organization. The ratio OF tho pre-
ferred stock Go the common was M 1S
10 40 This constitutes very decided
change In the character OF the owner
ship and control uf each company
IN the original suit there were TWEEN
ty-nine defendants. who were charged
with being the conspirators through
whom the Illegal combination acquired
and exercised lis unlawful dominion
Under the decree these defendants viii
hold amounts OF stock In the various
distributes companies ranging from ~
per cent as maximum 70 2Si4 per
cent as a minimum. except In the case
OF one small company the Porto Ripan
Tobacco company Ia which they viii
hold - per cent. The twenty-nine in,
dividual defendants are enjOlued FOR
three years from buying any stock eX
cept from each other. and the group is
thus prevented from extending its con
troll during that period. All parties TO
the suit and the new companies who
are made parties are enjoined perpet
ually 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
enjoined from having common direc-
tors or officers. or common buying or
selling agents. or common Offices. 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 I'm
active business and that the settle
ment thar would be effective TO put all
on an equality would be a division OF
the capital and plant OF the trust into
small fractions In amount more near.
ly equal 10 that OF each OF the indie
pendent companies. This contention
results from a misunderstanding OF
the antitrust law and its purpose IL
is not intended thereby 10 prevent the
accumulation OF large capital I'm bust
ness enterprises I'm which such com
bination can secure reduced cost Of
production. sale and distribution. II
is directed against such an aggrega
ton OF capital only when it's purpose
is that OF Sitting competition. enhanc.
ing or controlling prices and establish
ing monopoly. IL we shall have 10y
the decree defeated these purposes
and restored competition between the
large units into which the capital and
plant have been divided we shall have
accomplished the useful purpose Of
the statute.
confisoation Not the Purpose Of the
Statute.
II Is not the purpose ~ the statute
10 conhScafe the property and capital
or the offending trusts Methods Of
punishment by Gue or imprisonment
Of the individual offenders. 10y fine Of
the corporation or by forfeiture az IT'S
goods n transportation are provided.
but the proceeding M equity IS spe
clhc remedy 90 stop The operation Of
the trust his injunction and prevent
the future usc of The plant ana capital
In violation of thc statute
Effectiveness Of Decree.
| venture 10 shy that not in the his
tory ~ American law has decree
moro effective for such purpose been
entered hy court than that against
the tohacro trust As Circuit Judge
Noycs said In his Judgment approving
the decree
"The extent 10 which IL has been
necessary rs tear apart this combinn.
ton and force Il into new forms with
the attendant burdens ought 10 demon.
stratc that the federal antitrust statute
Is n drastic statute which accomplishes
effective results which so long as II
stands on the statute books musi be
obeyod and which cannot be dlsobey
ed without mourning farreaching pen
alties And. on the other hand. the
successful reconstruction OF this or
ganizatlon should teach that the effect
n enforcing this statute Is not 10 lie.
siroy bui 20 reconstruct. not 10 De
molish. hnt 10 rcrreute IN accordance
with the conditions which the congress
has declared shnll exist among the
people n the Emitted States
Common Stock Ownership.
II hns hccu aSsuiu,d that the pres
ent pro rata agd common ownership In
M these companies by former stock.
holders 81 thu trust would insure 4
continuance nf the same old single con.