Evening journal., 1912-11-18

Der OF scattered stockholders. they
would be so minimized as hardly to
warrant consideration even from an
economic standpoint
lniunctire Features.
In recognition of the possibility Of
feigned and not a real competition.
in view especially Of the common
stockholding, the decree OF November
16, 1911, not only provided for a dis
integration, but IL entered continuing
iniunctions some perpetual and some
operative during the time when the
common ownership would likely OBJ
tain. most detailed and drastic.
Thcs injunctions run not only
against The American Tobacco Com
pany, Liggett & Myers Tobacco Com
pany. and =. Lorillard Company, but
all the companies whose stock was
distributed by The American Tobacco
Company. including r. J. Reynolds
Tobacco Company. United Cigar
stores, the licorice companies. the
foil companies. snuff companies, Brit
ish-American Tobacco Company,
Limited, and The Imperial Tobacco
Company, Limited
These iniunctions provide that
none of these companies shall direct
ly or indirectly cooperate In the con-
troll or management OF a corporation,
or in hXing the plice TO be paid for
leaf tobacco or other raw materials,
or the prices to be charged for man
ufactured product or for the appor-
tionment of trade, either with respect
to customers or locality; that none Of
them should convey businesses to an
other and none Of them should have
! the same clerical organization. or the
some Office or Offices. that none OF
them should hold stock in a corpor-
alton In which another holds stock.
For five years none Of them should
have an officer or director who at the
same time was officer or director in
another, and none of them should em-
ploy the same agent I'm the United
| States for the purchase OF tobacco
or for the sale of tobacco, and none
OF them should acquire stock In any
of the others, or make loans or other
wise extend financial aid to any Of
the others.
These injunctions. II obeyed. insure
the reality Of competition. and II dis
obeyed, then detection is certain and
personal punishment Ia imminent.
II there has been a claim made by
single Individual that the iniunc-
tions contained in the decree Of No
vember l6, 1911, have not been obey
ed in letter and in spirit, The Amer
lean Tobacco Company has not heard
Of H. On the leaf markets In Ken
lucky, Virginia. Tennessee, North
Carolina and South Carolina, the
competition has been and is open,
notorious and extreme. In the mar
lketing Of goods 1t has been equally
so.
Course Of Business.
Immediately after the entry OF the
decree the new companies provided
for we're established. the stocks di
reeted to be distributed were dis
tributed, the conveyances provided to
be made were made.
Each new company began its busi-
ness well equipped with factories,
cash. leaf tobacco. and. above all,
eflic ent and experienced tobacco
men.
The r. ]. Reynolds Tobacco Com
pany, having in fact always operated
independent Of the control Of The
American Tobacco Company, contin.
ued it's old management with its fac
tory and Offices at Winston-Salem
n. c.. The American Tobacco Com
pany having no sort Of interest in IL
The Liggett & Myers Tobacco Com.
pany was provided with a capable
management with It's Offices and its
largest factory in ST. Louis.
The p Lorillard Company was pro
vided with a capable management
with its offices and its largest factory
in Jersey City
The American Tobacco Company
retained its Offices with a part OF iti
old management, in New York.
Mr.. James b. Duke who had beer
president Of the old The American
; Tobacco Company resigned all con
D nection in fact as we'll as in name
with any Of the American companies
and became the principal executive
j officer of the British American To
r bacco Company. Limited, with head
- quarters in London TO which plac
= he had gone before February 2S 1917
and where he has certainly spen
b most OF his time since thar date.
- Changes In Stock Ownership.
g Tho changes Of stock ownershi
= has undoubtedly progressed as /
n very evident from the sales that hav
& been reported on the exchanges 1
e New York by the daily newspaper
h and the record of the company
/ transfer books.
% As 30 the stocks OF the variou
IS companies. the fuctuation in quota
8 tion prices show that different peopl
n have different ideas OF their respe,
NJ tive values.
II had already been announced tn;
many of the twenty-nine individui
s. defendants had disposed OF all N
4. stock of United Cigar Stores Con
I'd pany that they received on the distr
+ button OF that stock by The America
ft Tobacco Comnany. and some tin
no ago il was officially announced TIL
al all of them have sold. so that noi
OF the other defendants. corporate
ed individual have a dollars interes
r. direct or indirect. in the United
rt. gar Stores Company.
On Elects Of Competition.
G. So far as the experiences Of III
70. American Tobacco Company goG
III leaf tobacco. generally speaking. h
he brought very high prices since Il
ne disintegration II is absolutely trl
ad that the decree has been obeyed
us letter and i'm spirit. and that there h
he been competition vigorous and actiN
II is only fair to say that the hil
lis prices have not. in our iudSemeI
as resulted solely from the disntegr
r. ton and the increased competitil
ed thus brought about. The fact is Tn
cd in some OF the sections in which le
tobacco. grows. unfavorahlc wealth
n conditions curtailed the expect
an crop. Undoubtedly different peor
in connected with the leaf denartmen
of Of the various companies have h
different views as TO the probat
Il nnnrrr- nf rricca 1hia rnndiiinn Il