South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-07-18
MAY MAKE MOVE
AGAINST OIL AND
TOBACCO TRUSTS
Attorney General MCReynOIdS
is Considering Cases With a
View of Determining Further
Procedure.

WASHINGTON. July 1s.-Atty.
Gen. McReynolds is still considering
the dissOlutions Of the Standard OF
and Tobacco trusts 10 Determine
whether further steps should be ia
ken by the federal government TO
promote real and free competition
which. IL is alleged. does not exist in
those industries under present condi-
lions, despite the DEGREES Of dissolu-
ton.
In the Tobacco case, the attorney
general Is giving serious thought to
The bill introduced by Sen. CUmmins
directing the department. Of justice
20 appeal 20 the supreme court from
the decree Of dissolution entered by
the circuit court for the southern
district OF New York. Nov. I6, 1911,
and also authorizing Independent to-
bacco manufacturers and others to in
tervene in the case TO object TO the
decree. +. II. Levy, who represented
independents when they unsuccessful
Is sought TO intervene before the final
entry OF the decree. has fled with
the department a digest Of the situa-
ton and an argument in favor of the
legality of the proposed law. This
IS now under consideration and the
attorney general is expected TO give
his opinion 10 the senate committee
on judiciary TO which the Cummins
bill has been referred.
Some intricate questions Of law, Of
ficials OF the department of justice
point out. are involved in the Cum
minis measure. The government, an
der the present statute had 60 days
in which TO appeal TO the supreme
court from the New York courts de-
cree dissolving the Tobacco trust, but
former Atty. Gen. Wickersham agreed
20 the decree and did not appeal
Didn't File Appeal.
II has been suggested that since the
government did not avail itself Of the
right To appeal within the time limit,
the tobacco interests were entitled to
regard the decree as a final determin-
alton of the issues, and the govern
ment should not attempt TO undo ii
after the expiration OF nearly two
years.
However. the attorney general, who
regards the decree as a mere sub
terfuge." is giving the Cummins bill
consideration as a possible way to
cure the non competitive evils.
In the Standard Oil case the attor-
ney general is continuing his study OF
the report of Chas b. Morrison and
Oliver L. Pagan, the government at
torneys who investigated the question
whether the decree of dissolution is
being violated. A conclusion has not
yet been reached. The oil interests
maintain they are complying with the
decree. While the governments bill
in the oil case and the supreme
courts decision were sweeping in
character, the attorney general, before
taking any further action in the
courts, must decide whether the de-
cree properly interpreted the supreme
courts decision which was TO compel
competition. Unfair competitive
methods are said 20 have been elm
mated and the question is, are the
disintegrated companies competing or
are they fixing the high price of OIL
While the supreme court decided
both cases, the decree in neither case
reached the highest tribunal. Atty.
Gen. McReynOlds' principal complaint
against the DEGREES revolves about the
gro rata distribution of stock among
the same stockholders who controlled
the original combinations. He point
ed out Thursday that the supreme
court. in the Union Pacific antitrust
case, decided that such a distribution
was not a real dissolution of a trust
under the Sherman law.