Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-12-05

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sions of the latest two cases from
which such a dangerous theory Of ju-
dicial discretion in enforcing this stat
ute can derive the slightest sanction.
FORCE AND EFFECTIVENESS.
We have been twenty-one years max
ing this statute effective for the pur-
poses for which 1t was enacted. The
knight case was discouraging and
seemed to remit to the states the whole
available power to attack and suppress
the evils of the trusts. Slowly. howev-
er, the error of that judgment was cor
rected, and only in the last three or
four years has the heavy hand of the
law been laid upon the great Illegal
combinations that have exercised such
an absolute dominion over many of our
industries. Criminal prosecutions hare
been brought. and a number are pend
ing. but juries have felt averse TO con
victing for Jail sentences and judges
have been most reluctant to impose
such sentences on men Of respectable
standing in society whose offense has
been regarded as merely statutory.
Still. as the offense becomes better IN
derstood and the committing of II par
takes more of studied and deliberate
defiance OF the law we can be conf
dent that juries will convict individu-
ais and that Jail sentences will be i'm
posed.
In the Standard Oil case the supreme
and circuit courts found the combina-
ton to be a monopoly of the interstate
business Of refining. transporting and
marketing petroleum and its products.
effected and maintained through thir-
ty-seven different corporations. the
stock Of which was held by New Jer-
sey company. IL In effect commanded
the dissolution of this combination, di-
rected the transfer and pro rata distri-
button by the New Jersey company OF
the stock held by It IN the thirty seven
corporations to and among its stock
holders. and the corporations and indi-
( vidual defendants were enjoined from
conspiring or combining to restore
such monopoly. and all agreemerts he
! tween the subsidiary corporations tend
! ing TO produce or bring about further
violations Of the act were enjoined.
In the tobacco case the court found
that the individual defendants. TWEEN
| ty-nine in number. had been engaged
/ in a successful effort to acquire com
| plete dominion over the manufacture.
! sale and distribution Of tobacco in this
country and abroad and that this had
been done by combinations made with
a purpose and effect TO stihe competi-
! ton. control prices and establish a
monopoly. not only in the manufacture
! of tobacco but also II tin foil and lie
! orice used in its manufacture and o.
its products Of cigars. cigarettes and
| snuffs. The tobacco suit presented Il
far more complicated and difficult case
than the Standard Oil suit for 4 decree
which would effectuate the will of the
court and end the violation of the stat
ute There was here no single hold
ing company. as In the case of the
Standard Oil trust. The main company
was the American Tobacco company.
manufacturing. selling and holding
| company. The plan adopted to de-
stroy the combination and restore COM
petition involved the redivision of the
capital and plants of the whole trust
between some of the companies con-
shutting the trust and new companies
orga nized for the purposes of the de-
cree and made parties to it and num-
bering. new ard old. fourteen.
SITUATION AFTER REIMBURSEMENT
The American Tobacco company
(old), readjusted capital 800. 100000;
the Liggett & Meyers Tobacco company
new, capital SCI. 100000: the P. Loril-
lard company new. capital $4,000,
600. and the r. ]. Reynolds Tobacco
company (oldl. capital $T.525.000. are
chiefly engaged in the manufacture
and sale Of chewing and smoking to
bacco and cigars. The former one tin
foil company is divided into two. one
Of $S25 900 capital and the other OF
100000. The one snuff company IS
divided into three companies. one witt
a capital of S15.OOO,OO another with 6
capital Of 100000 and a third witt
a capital Of Ss,OOO.OOo. The licoricC
companies are two. one with a capita
Of S5.75S.300 and another with a CAPT
tai OF 100000. There is also the
British-American Tobacco company. &
British corporation. doing bushes:
abroad with a capital Of $26.O0O. 900
the Porto Rican Tobacco company
with a capital Of $500. 900. and the
corporation Of United Cigar Stores
with a capital Of 100000.
Under this arrangement each Of tn,
different kinds OF business will be dis
tributed between two or more compa
MES with a division Of the prominen
brands in the same tobacco products
so as to make competition not onl!
possible but necessary. Thus tn,
smoking tobacco business Of the coun
try is divided so that the present In
dependent companies have 2139 pc
cent, while the American Tobacco com
pany will have 33.0S per cent. the Liz
gett & Meyers zoos per cent, the Lori
lard company 22s2 per cent and tn
Reynolds company 2.66 per cent. Tn
stock OF the other thirteen companies
both preferred and common, has BEEF
taken from the defendant American
Tobacco company and has been dis
tributed among its stockholders. Al
} covenants restricting competition hav
been declared null and further per
: Torrance Of them has been enjoined