The Washington times., 1912-11-18


of the country has been thoroughly
reorganized in obedience to both the
letter and the spirit of the federal
| courts injunction in connection with
the dissolution of the Tobacco Trust"
the American Tobacco Company has
issued Il remarkably frank and detailed
statement Of facts about the tobacco
industry. which marks a new policy In
the conduct of great corporate bust
ness.
For many years the powers in the
tobacco business pursued a uniform
policy OF paying no attention to crit
icism. whatever the character or the
source. That was IN the old days OF
1.-THE public be damned attitude. To-
day the American Tobacco manage
ment wishes the public to understand
new ideas prevail. The tobacco busi-
ness has been brought back to con-
ditions Of very real and active cont
petition "a competition from which. V
is declared. the public is deriving very
| large benefits.
Percival S. Hill. president of the
American Tobacco Company. Issues the
remarkable discussion Of tobacco ar
fairs which for the first time discusses
| with the public the revolution IN the
business that has followed the dissolu-
| ton OF the company Of which he Is
head. Mr.. Hill pictures an Industry In
a completely reorganized condition, with
competition not only active. but with
| the substantial evidences of that conf
petition blazoned everywhere. lie
points out that publicity is now the
rule, and indicates that It Is going to
| continue to be.
1t is known that the men now in
| executive charge OF the four great cor
porations which were set up indepen-
IDENTIFY. following the Federal decree,
| believe that they are doing just what
the Supreme Court wanted them to do.
They have not been pleased with the
disposition to attack the court decree as
| subterfuge and fake; and they do
not intend to submit in silence TO at
| tacks in the future. Instead. their
policy will be to strike back when they
feel unjustly attacked. to let the public
| know the facts when misrepresentation
are given publicity, and In general to
| commend themselves as far as possible
| to the confidence and good VIII OF the
| community.
Calls 1t Competition.
| Under the court decree. the Amer
lean Tobacco Company. Mr.. Hin pointed
out, Invested itself OF about Sl0o,0oo,00D
worth OF properties. To own and con-
| troll these properties. factories, brands.
etc, there were created the p. Loril-
lard Company and Lggett & Myers.
Inc. The properties went to these con-
Germs at prices which the court fixed:
and the money received from these dis
| posals by the American, was used to
reduce It's own outstanding securities.
Mr.. Hill declares that 20 far as con-
| cerncd brands, types of leaf tooacco
| used, territorial distribution of bust
ness, and all other things. the condi-
| tons brought about were, In fact, COM
petition. Drastic and detailed donG.-
| tons were imposed upon the business
panics whose stock was distributed b.
| the American. including Ligget "
Myers, =. Lorllard Comanyy,y United
Cigar stores. British American Tobacco
| Company, Imperial Tobacco Company.
| Limited. and the licorice, foil and snuit
concerns.
As to these injunctions, Mr.. Hin says;
| These injunCtionS provide that one
of these companies shall directly or IN
directly cooperate in the control OF
| management of a corporation. or In
fixing the price to be paid for leai
tobacco or other ra wmaterials. or ;ht
| prices to be charged for MANUFACTURED
product, or for the apportionment Of
trade either with respect to customers
or locality: that none OF them SHOULD
| convey businesses to another ana none
OF them should have the same clerica
organization. or the same office or of
fees, that none of them should holc
stock In a corporation in which an
other holds stock.
Cannot Be Common Agents.
"For five years none of them should
have an officer or director who at the
same time was an officer or director ir
another, and none OF them should EN-
ploy the same agent in 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 oil
make loans or otherwise extend fnancia
aid to any OF the others.
These injunctions. If obeyed, insure
the reality of competition, and II dis,
obeyed. then detection is certain and
personal punishment is imminent.
"If there has been "a claim made by a
single Individual that the injunctions
contained in the decree OF November 10
1911. have not been obeyed in letter and
has not heard Of It, On the leaf markets
in Kentucky, Virginia, Tennessee. North
Carolina, and South Carolina the COM
petition has been, and Is, open, notori,
| Gus, and extreme. In the marketing OF
| goods It has been equally SO.
James B. Duke, who had been presl'
dent Of the old The American Tobacco
Company, resigned all connections II
fact AS we'll as In name with any of the
American companies and became th'
principal executive officer of British
American Tobacco Company. Limited
with headquarters in London, to which
Mace he had gone before February Is
iGl2, and where he has certainly spen
most OF his time since that date"
Mr.. Hin points out that higher price
have prevailed. in the leaf tobacco mar