The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-12-05

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 1926. 900 capital and the other Of
100000. The one snuff company ii
divided into three companies, one with
q capital Of $16. 600 eco. another with a
capital Of ss,O00.0O0 and a third with
q capital Of SS.OOO.OOO. The licorice
companies are two. one with a capital
Of 1915 800 and another with a capt.
tai Of $2,O000O0. There is also the
British-American Tobacco company, a
British corporation. doing business
abroad with a capital Of $4,000, 900.
the Porto Rican Tobacco company,
with q capital Of $1.800.0o0. and the
corporation Of United Cigar Stores,
with a capital of $9.OOO.O0O.
Under this arrangement each Of the
different kinds Of business will be dis
tributed between two or more compa-
MES with a division Of the prominent
brands in the same tobacco products,
SO as to make competition not only
possible, but necessary. Thus : the
smoking tobacco business Of the coun-
try is divided so that the present in
dependent companies have .21.39 per
cent, while the American Tobacco COM
pany will have 33.0s per cent. the Lig-
gett & Meyers zoos per cent. the Loril-
lard company 22.S2 per cent and the
Reynolds company 2.88 per cent. The
stock of the other thirteen companies,
both preferred and 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-
Torrance of them has been enjoined.
The preferred stock Of the, different
companies has now been given voting
power which was denied It under the
old organization. The ratio of the pre-
ferred stock to the common was as 7a
to 20. This constitutes 4 very decided
change in the character Of the owner
ship and control Of each company.
In. the original suit there were TWEEN.
LYNNE defendants. who were charged
With being the conspirators through
whom the Illegal combination acquired
and. exercised its unlawful dominion.
Under the decree these defendants will
hold amounts Of stock In the various
Distribute companies ranging from Al
per cent as a maximum to 2Sh per
cent as a minimum. except in the case
Of one small company, the Porto Rican
Tobacco company. in which they will
hold rs per cent. The twenty.nine in.
dividual defendants are enjoined 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. Al parties to
the suit and the new companies. who
are made parties r enjoined perpet.
uaily from in any way effccting, 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 OF
selling agents. or common Offices. OF
lending. money to each other. -:
/: Size Of New Companies.
Objection was made by certain in.
dependent tobacco companies that this
settlement was unjust because it left
companies with very large capital IN
active business and that the settle.
lhent that would be effective, to put all
on an. equality would be a division Of
the capital and plant Of the trust into
sncal! fractions In amount: more near.
Fly equal to that Of each Of the indie.
pendent companies. This. contention
results from a misunderstanding OF
the antitrust law and it's purpose. II
is not intended thereby to prevent the
accumulation OF large capital in bust.
ness enterprises In which such q com.
binetion can secure reduced cost Of
production. sale and distribution. 1t
|ts directed against such an aggrega-