Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1911-11-10
O|SSOLUT|ONPLAN
IS UPHELD
u. S. COURT APPROVES SCHEME
OF THE AMERICAN TOBACCO
COMPANY.
MAY GO TO THE SUPREME COURT
AS Independents Are Not Satisfied
With Final Decision of the Court
in Four Years Liti-
cation.

New York, Nov 9-The litigation
which the federal government began
four and q half years ago to break up
the American Tobacco Company as a
monopoly in restraint of trade, ap-
preached the state of completion by
judicial acceptance, with a few modifi-
cations, of the much discussed plan
that the tobacco company itself drew
up for dissolution of the combination
in accordance with a mandate Of the
United States supreme court.
The decision of approval was filed
before Judge Lacombe Of the United
States circuit court. Supplementary
opinions were filed by Judge Coke
and Noyes, concurring generally with
Judge Lacombe. Not one o fthe judges
regarded the plan as perfect, but all
declared that the ideal was beyond at
tainment and that as practical, sub
stantial compliance with the law, the
plan, as slightly modified, appeared
the best attainable.
The features of the opinions of
Judges Lacombe. Noyes and Coke are
that the dissolution should be consum-
mated without delay; that the request
of Attorney General Wickersham for
the reservation by the government OF
right to apply for further or other re.
lief within period of five years, if the
plan did not result in harmony with
the law, is declared not to be within
the authority of the court to grant
that the court does enjoin for a period
of three years the 20 individual de-
PENDANTS in the suit from acquiring
any additional holdings in the com
panies into which the trust is split
dependents for dissolution of the Unit.
ed Cigar Stores Company lay outside
the authority of the court, but that
this did not preclude any independent
action later against the cigar stores
company as an individual corporation
The announcement of the courts &C
ton was followed almost Immediately
by the declaration of counsel for sew
eral Of the opposing Independent tObac.
co interests that an attempt undOubted
ly would be made to have the decision
reviewed by the United States supreme
court.
Noyes Draws General Moral.
Judge Noyes drew general moral
from the case. In conclusion, he said
THE extent to which it has been
necessary to tear apart this combina
ton and force it into new forms with
the attendant burdens, ought to dem
OnStrate that the federal antitrust
statute is drastic statute, which &C
complishes effective results with
which, so long as it stands on the stat
ute books, must be obeyed, and which
cannot be disobeyed, without incur
ring far-reaching penalties. And on
the other hand, the successful recon
struction of this organization should
teach that the effect of enforcing this
statute against industrial combinations
is not to destroy, but to recreate il
accordance with the conditions which
the congress has declared shall exist
among the people of the United
States"
Judge Lacombe says that while the
plan for disintegration is correctly de
scribed as the proposed plan of the
American Tobacco company, since thai
corporation and the other defendants
offer to carry it out, it should be
remembered that in it's present form
the plan is the fruit of much discus
sion during the open hearing.
Original! Plan Modified.
He says also that the objections Of
Attorney General Wickersham were
some of its most drastic provisions
being inserted in order to meet OIL
avoid his criticisms. He says also
that provision should be made in car
rying out the plan for keeping intact
the books and records of the Ameri
can Tobacco company, it's present con
stituents and branches, so that they
will be available and subject to eX
animation to the same extent as al
present in suits for accounting and
other existing litigations.
Judge Lacombe also considered the
objection which the attorney genera,
made to the plan of the company tC
retain in it's treasury about $104 600,
900 in addition to working capital tc
pay outstanding bonds when they ma
ture. The attorney generals objec
tons were on the ground that the
possession of SO much surplus capi
tai was fraught with possibilities OF
evil use.
Judge Lacombe pointed out that al