The times. [volume] (Richmond, Va.) 1890-1903, 1890-08-27
GREAT DEAL IN TOBACCO.
CAPITALIZATION OF HOUSES IN
TWO BIG CITIES
About 81. 900. 900 Likely to he Put In the
Move, N Consummated-Cincinnati and
Louisville Concerned Mainly III the

tobacco is sold by sample on the hogsheau
nj auction, and even In the West there could
be no palpaDe effect if the deal were con-
summated. 1 deal great deal in Western
tobacco, and had heard enough Of this
move already, but | don't attach any inn
portancc whatever 20 il so far as its effect
on this market goes"
The above was said yesterday by MIR.
William II. Mallory, one Of the leading leaf
tobacco dealers in Richmond. when he was
shown the following article FROM Memphis
paper
The rumor that new departure in the to-
1 haccO business of our city is among the
probabilities, has given rise TO considerable
speculation within the past week or TWO.
| just what shape il takes has been ques-
! ton with all except the magnatcs, who for
reasons Of their own have been inclined to
keep matters dark. In the past few days,
however, the necessity for secrecy has been
abated and general conditions have been
such as TO make more easy the task OF
fathOming the purposes and projects that
concern one of the grea. brdnches OF Gin
| cinnati's industries.
Mr.. Lee H. Brooks, of the Globe Tobacco
Warehouse, was met yesterday evening by
the Commercial Gazette, and he was re-
quested TO enlighten the public as TO what
particular designs were in meditation.
"Well," he remarked, "the situation is
now pretty much the same as it has been
for several months back. | think rather
| lightly OF il myself. ! hardly believe it will
work out into anything. II is quite indei-
mite and uncertain.
HOW IT BEGAN.
But this is the way it began. Some three
months ago ex-COngfessman Willis. of Ken
lucky, conceived the plan of consolidating
/ the tobacco warehouses Of Louisville into
one corporation or syndicate. He probably
acted in concert with or as the agent of
some business men. Their idea was to have
the Louisville houses sold out in lump to
a New \ Ork syndicate, which would under
| take TO operate them thus united. Willis
got options on all the Louisville houses but
two. There are fourteen houses in Louis
vile.
shortly after Willis made this start Mr.
J. Gordon TAYLOR, of this city, went in to
carry out an exactly similar arrangement
with regard 10 the Cincinnati tobacco
houses. He has brOther-in-law in Eng
land and believe il was at his isstigatiOn
that he started into the scheme. His pur-
pose was to get English capital to buy Us
all out. Mr.. Taylor was with the White
Lead Company here in Cincinnati, and he
| HAS liit capacity 'Di MINIMIZING dhdllS VI
this kind. Mr.. Taylor, however, wanted TO
go into the business on bigger scale than
Mr.. Willis. He wanted to take in all the
houses Of both Cincinnati and Louisville,
and so unite the two markets.
OPTIONS IN CrNCIEEA1I.
"Willis would probably have got to the
same idea in time. Mr.. Taylor got options
on all the Cincinnati houses: that Of the Mi
ami Company was verbal only, but that
was enough. When this had been done Mr..
Taylor started down to Louisville, intend
ing to secure options on the Warehouses
there also. But he found that Willis was
ahead of him. As a result the two men got
together and agreed, as | believe, 10 work
together in the attempt to have the tobacco
houses Of both cities-Cincnnati and Louis
vlle-b0ught out and operated by single
| syndicate. This is the plan at present. The
options that we gave here in Cincinnati
were to expire September LIST. unless large
bonus was then paid or the sale cOnsum-
mated by all the money being paid over
The options on the Louisville houses are
! Xod to expire September 10Th. BY a sup
Elementary agreement Mr.. Taylor got the
| Cincinnati houses 10 extend the time Of the
options to October lst. and that is the way
il is now. Mr.. Taylor and Mr.. Willis went
TO New Ork some time ago and are still
there. They arG trying to arrange the sale.
If il Is carried through it Will be by New
lOrk and English capital united. | don't
know Just what they will be able to do.
have from the first taken the matter rather
lightly-as something that was hardly like
| " to be carried out. and that is the way we
feel concerning ii still.
STOCK COMPANY.
'If any new arrangement at all is to take
place. think it would be something of the
the same kind as that Of the Proctor ~
| Gamble COmpany-the consolidation Of the
houses Of Cincinnati and Louisville a. a
! Joint stock company. That has been talked
| Of With a capital Of Sj,OO0,OOO il would be
a success unquestiOnably. \ large part, a
majority, probably, would OF course be held
by the prOprietOrs of the present houses,
and the rest offered on the market. 1t has
been figured that this stock so capitalized,
would pay a quarterly five per cent diyl-
dend, or near that If the Taylor and Will
lis syndicate succeeds, it will do something
OF the same kind 1t would insist, Of
course, that the managers Of the houses
should all continue with them
"What advantages would the cOnsOlida-
tion hayeW
at would do away with the fighting be-
tween the markets of Cincinnati and Louis
| VILE" said Mr.. Brooks; land Tor another
thing. with all the fighting between the diff
ferent houses in the two cities. The cOnsOl-
idated concern would need only the number
of agents that now each house has to have.
In Louisville there are now 30 of these
agents. In Cincinnati we have 30 or 60 Of
them. Then it would do away with rebates.
1t would place the business on thoroughly
solid foundation and end the wild specula-
ton that exists. 1t would benefit the to-
baccO men and also the farmers"
OVER A MILLION.
Mr.. Brooks said the aggregate Of the
amounts asked for the Cincinnati house
from the syndicate is about 81 100000. The
price fixed for the Louisville houses is
something more.
MIR. Brooks seemed to think that the joint
stock arrangement on the Proctor a Gam
bic plan Is much more likely 10 be the out
come of the present agitation OF opinions
and projects among the tobacco men. The
options to Messrs. Taylor and Willis. how
ever. hold as regards Cincinnati till the LIST
of October. 1t Will be practically settled
by the 10Th of september, when it will be
seen what the syndicate boomers are able
to do with respect TO the options on the
! Louisville houses.
Itappears hardly to be doubted that one
Of the projects indicated will be finally
carried through, and that English and New
York capital will find an abiding place in
Cincinnati aid Louisville, or that the to-
baccO men Ct the two cities will effect
consolidation and permit local investors to
have a chance at the stock Of the company.
With regard to the first probability it is
said that the departure of Mr.. Harry More
head for Europe is connected with it, SO il
is suspected at least. 1t will take few
weeks, however, before the upshot can be
definitely guessed at
From sources other than Mr. Brooks, il is
| l., ho
mated in New York, and that the showing
of the tobacco houses has been such that
the syndicate expect to float bonds at per
cent. preferred stock at per cent. and
common stock at p per cent.
MANCHESTER MATTERS.