The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-05-30

ARLAN DIssENTED
|uIins is Similar, to Standard OH
Case But More Leniency
lis Shown to the
Company.


merica Tobacco Company is, like the
standard Oil Company, monopoly in
restraint of trade, in interstate as
yell as foreign commerce, and its dis
oluton was ordered by the supreme
court of the United States, though
(he terms of its dissolution are some
What different and more lenient than
In the case of the Standard Oil Com
pany.
The lower court, which, in this in
stance, is the United States Circuit
Court of Appeals for the Southern
District of New York, Is directed to
devise a plan for the dissolution or
to adopt one agreed upon, failure to
do either to be followed by an injunc-
Ition. restraining further operation nf
|the trust or the appointment of re-
|ceiver, Six months time is given.
which may be extended sixty days,
| the receivership or injunction proceed
|lngs to follow the failure of the re-
organization under the terms of the
Sherman antitrust act at the expira.
lion u those sixty days OF grace.
While little more leniency may
be shown in the matter of dissolution
than IN the case of the Standardr Oil.
decided two weeks ago, the decision
is considered more far reaching in It's
application. The ownership of the Sc.
curities and properties of this trust
Is so involved that the court, in the
words of Chief Justice White, who
delivered the opinion of the court, de-
clared the rule of reason so freely
Quoted since the oil decision, dictated
a different method in disposing of
this case without injury to the pub.
lie or the thousands of innocent
stockholders.
AS In the Standard Oil case Asso-
ciate Justice Harlan dissented and
gave strong opinion. in which he re.
sented the possible inference that he
and his associates in former opinions
had not been controlled by the rule of
reason; in fact, he intimated that ne
mad stood In the very spotlight of rea-
son in decisions which he cited and
which We're not to be construed as
applying like the majority opinion OF
me court had construed them.
The American Tobacco Company
and its subsidiary companies. is prob.
ably the most versatile octopus Of
modern business trusts. IT involves 5s
carrying on every incon.
ceiYanle business connected with the
tobacco industry, and 90 individuals
companies for the manufacture of
cigars, cigarettes, chewing tobacco,
snuff' licorice, pipes, cigar boxes, tin
ioii' vending machines, stationery,
Signs stogies, and corporations for
.ne purchase and holding OF tobacco
properties in Cuba and Porto Rico.
are the component parts of the com
bine.
II was first attacked by the gov
eihment in the suit filed before the
circuit court for the southern district
u New York on July 10, 1907. A
!, NchipldiHI CONGlluE SEVERAL
INJURED closely printed pages. and
the work of several years
u collection of evidence by the De-
partment of Justice agents, recited
.nat the trust had been formed by
coailtlon of FIVE cigarette compan-
es IN 1890, and had gradually grown
4 power through unfair competitive
hethods, until it dominated the to-
'acco world.
u was alleged that by a co-opera
I'VE arrangement with foreign
trusts the American combine appor-
loned the tobacco business of IT,.
sorld that 1t manipulated markets
. suit its own purposes, controlled
seudo independent" companies
oncerns that advertised themselves
not in the trust" when they
ere absolutely owned by the com
ihe-that 1t initiated standard In
brands and absorbed or
ng. - p-es W.
ns IN the Standard Oil case, the
'paceo litigation went to a master
! 'he taking Of testimony. Nearly {.