The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-11-09

The victory won by the Coca Cola
bottling companies in the decision OF
Judge Morris. OF the United states dis
trict court OF Delaware, was announced
in Chattanooga Monday afternoon and
Tuesday morning.
coincident with the verdict against
the Coca Cola company OF Delaware.
which operates the Atlanta syrup. fac
tory. the stock OF the large organizn-
ton went down two points. Last sum
mer, when first organized, there was a
Wide rush throughout the south for this
stock. II was based on no specified par
value. hut was sold at $40 per share,
and after few days commanded a
premium at one time, running up 10 $4S
per share. <
A few days ago the stock was selling
al s27 a share: today II Is being sold
at $25A, the ~ per share drop being
attributed TO tho unfavorable verdict
before the United states district court
in Delaware end the recent failure to
Much Stock Sold Here.
A large amount of the new Coca-Cola
stock was placed In Chattanooga when
the books were first opened for public
subscriptions, and from what iniorma-
ton can be gathered there was consid-
cradle trading in margins In II. Ac--
cording to one story now current about
the streets. the last furry In the stock
has forced one local Spectator TO sell
his automobile to keep up his margins.
The Monday decision In Delaware was
OF interest to Chattanoogans for many
more reasons than the stock of the par
ent company. being held here, Chatta-
nooga Is the home OF the owners OF the
majority of the bottling rights for
great part of the entire country. Two
corporations here, one, controlled by j.
7. Lupton and the other by the Mrs.
B. r. Thomas interests. control the
Coco Cola. bottling PRIVILEGES for most
have been practically ruined had the
new Coca-Cola concern In, Atlanta been
able to cancel the contract made by
Asa @. Gambler, its former owner, with
Messrs. Lupton. Thomas and White
Great Help. to Local Concerns.
The outcome OF the Delaware suit was
highly gratifying to the local bottling
interests, who are thereby assured
the Coca-Cola concern In Atlanta; In
fact. the perpetual nature of that .con-
tract was definitely recognised In Judge
Morris decision. The price feature. Of
the contract was not held SO dennitely
in the favor of the plaintiffs, as the
Judge decided to reserve to himself the
privilege of adjusting this feature. The
contract price was 81 cents, but az
present the bottlers. under provisional
agreement ad Item. are paying ngure
not shown disposition TO night for the
original low figure. which was based on
a cost OF making syrup when sugar was
selling at a very low price. but, were
the agreement that the parent concern
was required to furnish as much syrup
TO the bottlers as their needs required.
History OF suit.
The contract In question In the Coca
Cola litigation was signed, when the
Coca Cola company was controlled by
Asa G. Gambler, and provided that his
company should furnish such an amount
Of coca-cola syrup as might be required
for bottling purposes at nxed price
Of 81 cents per gallon. There was no
limitation fixed upon the time the con-
tract was to run.
The bottlng companies commended
that 1t was to continue IN perpetuity
and 1t was so observed by the Coca
Cola company under Asa g. Gamblers
Later, when the war taxes were
placed upon the syrup, the Coca Coia
company requested that they be addea
to the price they were to receive. ana
stin later. when the price OF sugar
the Coca-Coia company
again requested an Increase IN price
OF syrup, and again the bottling cons
panies consented. ,,,
stiil later, when new interests had |
bought, and reorganized the Coca.C Cola |
company. a. demand was made for a |
large increase ina the price OF syrup. |
The matter was discussed Tor eome
time and finally, submitted to aroitra-
ton. 81
The bottlers agreed to the finding OF
the arbitrators. but the Coca-Cola com
pany refused to. do so and gave notice
that on and after May ], 1890, they
would not furnish syrup to the bottnng
Companies at any price and that they
would consider the contract terminated.
! Thereupon the bottllng companies
sought an injunction prohibiting the
Coca Cola company from cutting OH
their supply OF syrup. This injunction
was temporarily, granted pending
oNrRAcr PERPETUAL
Judae Morris, o. the United
states court at Wilmington, peiy
has row declded that the contract
IL valid and perpetual, and the Co.
ca.Coia company must furnish
syrup to the bcttIers at 81 cents
per gallon.
He reserves in his decision, however
the right to impose terms upon the bot
thing companies. That is. he reserves
the right to decree that they must 90
certain things In connection with the
as, for example, that they
must pay the war taxes. or pay an In
creased price for syrup by reason OF
the emergency brought about by the
war.
Further proof will now be taken, and