The Birmingham age-herald., 1912-12-02
STATEMENT MADE
 BY TOBACCO CO. President Hill Explains the
 Dissolution Decree STATES ITS EFFECT
Tobacco Manufacturers Success De- bends Entirely on Attitude of the Public Toward His
 Product


 The following statement on the disinte- grafton of the American Tobacco com pany and it's subsequent effect has been issued by PercivaI S Hill president of the company:
 ..The decree of the circuit court of the United States for the southern district of New York providing for the disintegra- ton of the American Tobacco company and it's allied companies in accordance with the opinion of the supreme court rendered on May 29, 1911, was handed down on November 16, 1911. The disin- tegration immediately followed, and so has been in at least partial operation about a year, and in total operation since February 2S, 1912.
 A political campaign is ended in which there was some discussion of the effect of this decree, and such discussion as well as other discussion, has shown that there is a very considerable misunder- standing of the situation.
 'The American Tobacco company, fol- lowing rigidly it's policy of non-partcipa- tion in political matters, has remained silent but now that the campaign is ended, there can be no reason urged against a frank statement of conditions.
 The Decree Itself
 There has not been a full understand ing of the drastic and radical nature of the decree entered on November 16. 1911. The supreme court had declared that condition of monopoly and restraint of trade existed, and remanded the case to inc circuit court of New York with in- structons to bring about at date not later than February 2S, 1912 a termina- of of restraint of trade, and a condition hon. estly in harmony with the law.
 The American Tobacco company was the parent and dominant figure of the so- called tobacco combination and the cir cult court, in carrying out the opinion oi the supreme court, required the Amer jean Tobacco company. as the very first step, to do q thing that has been lightly noted in the public discussions of the degree, but that was of tremendous inn portance, viz:
 "The American Tobacco company was required to distribute among it's stock holders securities that had produced an annual income of more than $9,000 600, and that therefore had a total value of substantially s100o0o,000.
 These securities were selected by the court itself, and this distribution took from the American Tobacco company the very things. and almost all of the things, that had excited comment and criticism those things that were said to have given 10 tho American Tobacco company power over other manufacturers, such as (a) the control of or connection with the ncorice business and (b) the tin foil business; Co . that instrument which had, justly or un- Justly, excited the complaint of many manufacturers and dealers, the United Cigar Stores company which operates a chain of retail stores; (d) the foreign alli- ance, or connection with, the Imperial
 
 American Tobacco company, limited: (e) all relation or alliance with the R. ]. Reynolds Tobacco company, a large and successful southern manufacturer; dD all relation to alliance with American Snuff company, large snuff manufac- turer.
 Had the American Tobacco company never possessed the things of which it thus denuded itself, it is likely that it would never have been proceeded against as a monopoly.
 Creation of New Companies
 ''rhe next step ordered by the court was the disintegration of the very fac tories, brands and businesses that had heretofore been owned outright by the American Tobacco company.
 This was effected by the creation of two large manufacturing concerns called respectively Liggett & Myers Tobacco company and P. Lorillard company.
 The American Tobacco company made deeds and eonyeyances to these new com panies of definite properties, brands and businesses with definite statements made to the court as to what these factories, brands and businesses had made during the year 1910. what their output of pounds was and what their use of tobacco was.
 ''rhe price to be paid by these com panics was fixed hy the court, and the American Tobacco company used the pur- chase price in the reduction of it's own outstanding securities.
 The department of justice, represent ing the government the prosecutor of the case, had the advantage of the expert knowledge of the department of com nerce and labor, which itself had been Investigating the tobacco business for two or three years, and which reported through the man who had made the long continued examination of tho tobacco in dustry, that so far as brands, types of deaf tobacco used, territorial dstrbu- ton of business, and all other things, the conditions brought about were in fact competitive.
 Common Ownership of Stock
 ''This disintegration. as every dsinte- grafton of so-called trust, which the