The Birmingham age-herald., 1913-06-04
United States Courts Decree
Dismembering Standard
Oil and Tobacco Trusts
Is Being Considered
CASES OF BOTH
ARE BEING GIVEN
EARNEST THOUGHT
Consider Question Whether Reports
Made VIII Justify Criminal Pro-
ceedings-Considers Tobacco
Case to Determine Wheth-
er Trust Still Exists

Washington. June 3.--whcther decrees
of the United States courts dismemher-
ing the Standard oil and tobacco trusts
are being carried out was considered to-
day by the Wilson administration with a
view to possible institution of the most
important antitrust moves yet contem-
plated by the President and Attorney GEN
eral MeReyholds
! In the Standard oil case the Attorney
General received from Charles B. Nor
rison and Oliver L. Pagan. his special
assistants, a report of the. results of their
investigation of conditions in the oil in
dustry and began consideration OF tho
question whether the facts disclosed viii
Justify the department Of Justice In be-
ginning contempt of court or criminal
proceedings against oil interests on
charges Of violations of the dissolution
decree. Tonight this question was un-
settled.
In the tobacco case practically the en-
tire meeting OF the cabinet was devoted
to considering whether surface conditions
IN the tobacco trade warrant the Attorney
General in beginning an investigation sim
liar to that just finished in the Standard
oil case. to determine whether the decree
of dissolution is being violated and wheth-
er all semblance of a tobacco trust
has disappeared. The Attorney General
after the meeting was non-commltal as
to whether the inquiry will be undertaken.
Consideration of DEGREES
Consideration Of the workings of the
| IL Il, bftr
oil at the cabinet meeting and the tobacco
at the department of justiee-tooS place
today apparently by coneidenee. Around
the "rule Of reason principles first
enunciated by the United States supreme
court. in these cases. has been built
practically all of the antitrust litigation
since. The opinions have been the guild
ing stars for the attorney general SO far
u sthe Sherman antitrust law is con-
cerned.
Mr.. McReynolds. who as special as
American Tobacco company was dis
nally prosecuted the tobacco trust"
has been studying the workings of the
decree ever since he entered the eabi-
net. 1t is known that ne disagrees with
former Attorney General Wtekersham.
as to the adequacy of the adopted plan
of disintegration It has been under
around the pro rata distribution among
shareholders of the trust of stock Of
the II corporations Into which the
sstant to the Attorney General, origi-
integrated. He was quoted at the time
as saying the plan deserved IAN eXpe-
ditious commitment to the scrap heap"
Long Investigation
The report made to the Attorney Cen
eral by Messrs. Morrison and Pagan in
the oil case is the result of several
months investigation They have
studied conditions in various localities
and paid particular attention to the
soaring prices of oil. Their conference
with the Attorney General today was
inconclusive and it will be continued to-
morrow. The nature of their findings
has not been made public.
In a preliminary report made to for
mer Attorney General Wickersham just
before he retired from office these at
torneys declared that their then partial
investigation raised a serious doubt
to whether the Standard Oil trust had
been actually dissolved They found
that unfair competition had been elimi-
mated and the last few months of their
investigation has been largely devoted
conrol and management of the disinte-
grated parts of the trusts and the
control of the prices of oil still are di-
rected by the same concentrated inter-
ests as previously