The Detroit Times

The supreme court holds that the tobacco trust must be dissolved. Justice Harlan dissents. Six months are given to effect the dissolution.

"We say that the conclusions are inevitable," the majority opinion said, "not because of the vast amount of property aggregated by the combination, and not alone because of the dominion and control over the tobacco trade which actually exists, but because we think the conclusion of wrongful purpose and illegal combination is overwhelmingly established."

Here the chief justice recited the various steps in the organization of the combine. He detailed the outpourings of millions of dollars to buy out competing concerns and the "ever present manifestation" of conscious wrongdoing by the form in which the transactions were embodied from the beginning.

The supreme court held that the court below "clearly erred" in dismissing the complaint of conspiracy in restraint of trade against the individual defendants-the United Cigar Stores and the foreign corporations, and their subsidiary corporations.

As to the remedy to be applied, the chief justice said: "It follows that the relief which we are to afford must be wider than that awarded by the lower courts since that court merely decided that certain of the corporate defendants constituted combinations in violation of the first section of the act because of the fact that they were formed by the union of previously competing concerns and that the other defendants not dismissed from the action were parties to such combinations or promoted their purposes."

In concluding the chief justice said:

In view of the considerations we have stated we leave the matter to the court below to work out a compliance with the law without unnecessary injury to the public or the representatives of private property. While in many substantial respects our conclusion is in accord with that reached by the court below and while also the relief which we think should be awarded in some respects is coincident with that which the court granted, in order to prevent any complication and to clearly define the situation, we think instead of affirming and modifying, our decree in view of the broad nature of our conclusions should be one of reversal and remanding the costs in this court to be borne by the defendants below, with directions to the court below to enter a decree in conformity with this opinion and to take such further steps as may be necessary to fully carry out the directions which we have given.

The chief justice declared that the tobacco case presented greater difficulties in devising a remedy than any other of the cases under the anti-trust law. In the Standard Oil case, where there was a holding corporation of New Jersey, the remedy was easy, but in the present case there is a combination of trusts in ownership of stock.

Justice Harlan read a brief type-written statement of his views and said he would file a complete opinion later. His objection to the majority opinion of the court-in which he said he had concurred in part was because the court does not immediately put an end to the "Trust."

"The evidence in the record," he said, "is, I think, abundant to enable the court to render a decree containing all necessary details that will effectually suppress the evils of the combination in question. But the court sends the case back with directions to further hear the parties so as to ascertain whether a new condition cannot be re-created in harmony with the law. I have found nothing in the record, which makes me at all anxious to perpetuate any new combination among these companies which the court concedes had at all times exhibited a conscious wrongdoing.

"I will say, however, that in my opinion the decree of the court below should be affirmed as to the tobacco company and its accessory and subsidiary companies and reversed on the cross application appeal of the government, but my objections have particular reference to those parts of the court's opinion which reaffirm what it said recently in the Standard Oil Co. case about the former decisions of this court touching the anti-trust act. We also remind again as in the Standard Oil case of the necessity to apply the 'Rule of reason' in the construction of the act of congress which, is, I think, expressed in language so clear and simple that there is no room whatever for construction."

Harlan reiterated his belief that congress intended "Every restraint of trade to be unlawful." He went on to say that the defense of the "Rule of reason" rule, contained in a sentence in Chief Justice White's opinion, surprised him "Quite as much as would a statement that black was white, or white was black."

Enlarging upon the "Rule of reason" the chief justice today coined the new phrase by referring to the strict construction of the Sherman law, urged by the government as "the rule of the letter-of-the-law which kills."

Defendants in Tobacco Suit.
James B. Duke, Caleb C. Dula, Percival S. Hill, George Arents, Paul Brown, Robert B. Dula, George A. J Maloney, Oliver H. Payne, Thomas F Ryan, Robert K. Smith, George W. Watts, George G. Allen, John B. Cobb, William R. Harris, William H. McAllister, Anthony N. Brady, Benjamin N. Duke, H. M. Hanna, Herbert D. Kingsbury, Pierre Lorillard, Rufus L. Patterson, Frank H. Ray, Grant B. Schley, Charles M. Strotz, Peter A. B. Widener, Wolford C. Rood, Williamson W. Fuller.

The American Tobacco Co., British-American Tobacco Co., Imperial Tobacco Co. of Great Britain and Ireland, American Snuff Co., American Cigar Co., American Stogie Co., Havana Tobacco Co., Havana-American Co., P Lorillard Co., R. J. Reynolds Tobacco Co., Spaulding & Merrick, R. A. Patterson Tobacco Co., Blackwell's Durham Tobacco Co., S. Anargyros, Monopol Tobacco Works, Luhrman & Wilborn Tobacco Co., The John Bollman Co., F. F. Adams Tobacco Co., John W. Carroll Tobacco Co., Nall & Williams Tobacco Co., Nashville Tobacco Works, Day and Night Tobacco Co., Pinkerton Tobacco Co., R. P. Richardson, Jr. & Co., Inc., F. R. Penn Tobacco Co., Wells-Whitehead Tobacco Co., Lilipfort-Scales Co., W. S. Mathews & Sons, T. C. Williams Co., David Dunlop, Inc., W. E. Garrett & Sons, Inc., De Snuff Co., Standard Snuff Co., H. Bolander, Weyman Bros., The Porto Rican-American Tobacco Co., United Cigar Stores Co., Ken-Leky Tobacco Product Co., Amsterdam Supply Co., Mac. Andrew Forbes, J. S. Young Co., The Conlex Foll Co., The Johnson Cia yoll and Matal Co, International Cigar-Machinery Co., Gar son Vending Machine Co., reseent-Ci. and Tobacco Co., Florodora Tag Thom 10:Cuook 40830 ,Aurnetl SarCo Cilr Wel sO Oration J.&B Moo