The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1911-12-07

1855 i4iaEN4filE ~
manufactIre and sale OF chewing aud
rmpaing tobacco and cigaras The
former one t1nioiI company u d.
stded Into two one of ss25.oOo cap.
I'M and the other Of 100000! The
one stuff company ID divided into
three cor1panle5. one With d capital
q $4,000. 900; another with a cap
ltai Eot s~s,000,uOO: and q third With 4:
capital Of 100000. The llcorice
companies are two, one with a cap
ital OF s5,75So0 and another with d.
capital OF s2,o00.00O.8 There is, Also
the Britlsh-Ameriean Tobacco com;
pany. british corporation. doing.
business abroad with d capital Of
s2s.00o.ooo the Porto Rlcan Tobac.
co company with a capital Of
:S1.sQQ. 900 and thesssoEporations Of
United Cigar Stores. with a capital
Of $4,000, 900. Under this arrange
Ineht each u the different Kinds 81
business will 'le distributed between.
two or more companies. with a di.
vision 3ofjthe prominent brands in the
same tobacco products. 50 as to make
competition not only possible but
necessary Thus The smoking tobac,
co business OF the country Is divided
SO that the present Independent com.
panies have 21.3s per cent, while the
American Tobacco company will have
33.0s per cent. the Liggett and
Meyers 20.05 per: cent, the Lorillard
company 22.S2 per cent, and the
Reynolds company 2.66 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 its stockholders. All
covenants restricting competition have
been declared null and further per.
,formance of them has been entoineds
The preferred stock Of the different
companies has nov been given vot,
Ing power which was denied It under
the old organization. The ratio or
the preferred SatoekI5 to the common
was as q. to 40. sssThis constitutes d
very declded change in the character
OF the ownership and control OF
J each company. iAalf
In the original suit there were TWEEN.
ty.nine defendants who were charged
with being the coispirators through
whom the Illegal combination acquired
and exercised Its unlawful dominion.
Under the decree these defendants
Will hold amounts OF stock In the va!
riops Distribute companies. ranging
from Al per cent. as q maximum to
2Sh per cent. as q. minimum, except
In the case OF one small company, tho
Porto Rican Tobacco company In
which they will hold As per cent. The
twenty.nine Individual defendants are
enjolned for three years from buying
any stock except from each other,
and the group Is thus prevented from
extending Its control during that pc.
Rod. All parties to the suit, and the.
new companies who are made parties
are enjolned perpetually from In any
way efecting any combination be-
tween any; Of the companies In viola:
ton Of the statute BY way OF reaump-
ton of the old trust. Each OF the
fourteen companies Is enjoined from
acquiring stock In any of; the Others.
All these companies are enjoined from
having common directors or officers,
,!or common buying $Sor selling agents.
q Ncommon Offices, or lending money
e 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 III
active business. and that the settle.
ment that would be effective to put all
on an equality would be a division OF
the capital and plant OF the trust into
small factions'i In amount more nearly
equal to that Of each Of the independ.
ent companies. This contention re-
suits from a misunderstanding Of the
antitrust law and It's purpose. It is
not intended thereby to prevent the
accumulation Of large capital In bust.
ness enterprises In which such a com.
binatlon can secure reduced cost of
production. sale and distribution. 1t
Is directed against such an aggrega.
tlon OF capital only when Its purpose
Is 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 the capital and
plant have been divided. We shall have
accomplished the useful purpose OF
the statute.
confiseatlon. Not tho Purpose Of tho
Statute.
1t Is not the purpose Of the statute
to c~onfscate The property and capital
Of the offending trusts Methods OF
punishment by fine or Imprisonment
OF the individual offenders, by fine OF
the corporation, or by forfeiture OF It's
goods In transportation. are provided.
but the proceeding in equity is a spe.
cIhc remedy to stop the operation. Of
the trust by Injunction and prevent
the future use Of the plant and capital