The labor world. [volume] (Duluth, Minn.) 1896-current, 1911-10-14
Attempted Discrimination Against
Minority Stockholders to Be
Fought by independents.
BRANDEIS IS SELECTED:
RYAN SCHEME LOOKS BAD
Way to Remove Sore Spot In
Restraints Of Trade Is to Re-
store Honest Competition.

Thomas F. Ryan and his associates
had things all their own way in the
American Tobacco trust from the day
the first American Tobacco company
was formed until the day the SUI
preme court handed down its decision
ordering the trust to dissolve. For
| weeks past It has looked as though
Ryan and his colleagues would con-
! t1nue to have their own way despite
the decision of the court. According
to the tentative plan recently put
out as feeler, the tobacco trust
was to be split up into three parts.
Holders Of the 6 per cent and per
cent bonds were to be paid off on the
basis of 120 and 80, respectively, and
insiders who own the common stock,
selling around $400 a share, were to
continue in control of the $60,000,-
600 accumulated surplus of the old
tobacco trust as we'll as the business
of the three new companies.
Discrimination Against Minority.
| For rank discrimination against
minority stockholders the proposed
readjustment is on par with some
of the "reorganizations'' of the past.
Holders of the s and per cent
bonds originally owned the enormous
equities now enjoyed by insiders
holding the common stock. Never
theless, only feeble protests have
been made by holders of the 6 and
1 per cent bonds, and it has seemed
as though the proposed reorganization
| would go through. Suddenly, how
ever. Ryan and his associates have
been confronted by an unexpected
stumbling block. Independent dealers
I and manufacturers Of all kinds of
tobacco products, in every part :of
the country, large and small, are
mbining to, protest against the pro-
posed l1alf-baked reorganization, and
steps have been taken to. force the
tobacco trust to. dissolve in the true
meaning Of the word. What the su-
preme court ordered the tobacco
trust to do within six months from
May 20 was to "recreate out of the
elements now composing 1t a new
condition which shall be honestly in
harmony with and not repugnant to
the law"
Independents Know Business.
Independent tobacco manufac-
turers and dealers who are behind
the movement know what they are
doing. They did not hire Wall street
lawyers to handle their case. They
got a lawyer from Boston, Louis D.
Brandeis, a man who has never heen
susceptible to Wall street influences.
Brandeis is the man who, single
handed, gave Charles S. Mellen of the
New Haven the fight of his life. The
Boston lawyer is also the, man who
conducted the Ballinger in
vestigation; lie is also the man who
represented the shippers last year in
their fight to- prevent the railroads
from increasing their freight rates.
Brandefs,is one of the. ablest corpora
ton lawyers in the country, and a
fearless, tireless fighter. Much Of
the work he has done in the past
few years, has been without pay, that
is, just for the love Of fighting for
! a principle. ,r : 1885,, -,...s. :
In discussing the subject last week
Rrandeis said: -<...-.- -. 49, ..@ ->-.s..
Restore Competition, Solution.
/ Cali this talk about whether the
/ holders Of the 6 and per cent bonds
should get 120 and 90 for their se-
curities is beside the question. That
is not the way the subject should
Ibe approached. The sore spot Is a
combination in restraint Of trade, and
the way to remove that sore spot
is not to tackle the subject from the
point Of view of the securities in
volyed, but to destroy. the combina-
tion and restore competition. That
is the way we propose to go at it.,
and We believe that we will have the
supreme court of the United States
behind US.
Business Men on Lookout.
business men are watching the
reorganization of the American To.
Sacco company because whatever
plan is adopted by that company will
be used by other trusts to readiust
their business to confrom with the
law. What honest business men want
most IS to. learn where they stand 80
that all this spirit Of discomfort and
unrest will be q thing Of the past.
Such results cannot be obtained,
. however. unless the American Tobac-
co . company and other unlawful
trusts are organized for the, purp pose
OF restoring competition. some
Wall street people seem to think that
all that is demanded Is the exchange
OF one set Of securities for another.
Before the question is settled We be-
4 .lieye those men will have some diff
4 ferent IDEAS On tho subject. &