The times. [volume] (Richmond, Va.) 1890-1903, 1890-01-04
TALK OF A TRUST.
EXCITEMENT AT A REPORTED
SALE OF A GREAT BUSINESS.

The Alien = Gintef Manufacturing Com
pany Said 10 Have Been Absorbed In the
American Tobacco Comparatively
and Theories.
Much comment was excited IN this city
Yesterday ~ two reports, one being that the
Allen & Ginter Manufacturing Company
had sold out its business to the American
Tobacco Company. recently Incorporated by
the General Assembly Of Virginia, and the
other being that the local company had been
absorbed by the Northern trust. 70 light
which the American Company had been
Organized. A reporter OF the TSiKs called
AT Sir. Lewis Gintef's home o; night, but
was told he was out and would not be able
10 be seen.
Speculations as TO the meaning OF the
deal were numerous on Change. and the
general impression seemed 10 be that II waH
one step in the plan to eliminate the middle
man in transactions i'm n certain grade OF
bright tobaccos. From $4,000. O0OtO $6,0OO,OOO
are said 30 have been involved in the deal.
The bill 10 incorporate the American To
baccO Company wac introduced in the SEN
ate by Mr. lOtenstein on December eih. II
became a fact by signature Of Governor
Lee on December 10Th. The capital stock
was 81. 100000, and the incOrp0rators were
Lewis Ginter. Milton Cayce, John Pope,
Thomas +. Jefirees, and James y. Boyd.
The next day cry was raised that the Dili
had been railrOaded through the Assembly,
and objection vas raised particularly
against the section Of the charter creating
vested rights for fifty years. II Is stated
upon rOod authority that this feature was
introduced TO meet the request Of foreign
capitalists who wished T. come into the
company
A bill 70 repeal the bin granting the
charter passed the House Of Delegates
Thursday. and when il was introduced IN
the senate Yesterday was referred 10 the
Committee on General Laws. The theory
has been advanced that the transfer Of The
Allen q Ginter Company 10 the American
Company was 10 strengthen the position OF
the new corporation by giving it definite
property and thus TO make more difficult
any attempt 10 nullify the charter.
Regarding the second report, the idea
seems to be. according to the information
furnished the TlMEs by a man who ought
10 know. that a large tiust, intended 10 ab-
sorb all ihe cigarette manufactures Of the
country. was formed and incorporated ~
New Jersey. Allen & Ginter, % ight the
trust. were trying 10 incorporate the Amer
lean Tobacco COMPANY, but as the Legisla-
ture was not favorable 20 the plan aitef
consideration Allen n Ginter were ab-
sorbed 10y the trust. which IS composed OF
an the cigarette manufacturers Of any mag
nilude in the country. The trust starts Win
"A So, 900, 900 capital, and proposes 10 sell an
cigarettes manufactured by the firms repre-
scented i'm H. No travelling statesmen VIII De
cmplOycd and thus expenses VIII receive q
tremendous cut. and as a dealer cannot
procure cigarettes outside Of the trust he is
compelled 10 do as Mahomet did when the
mountain wouldn't come 10 him. The firms
represented in the scheme are: Kinney To-
bacco Company. Of New York; W. :. Kim
ball q Co.. of Rochester, y. y; W. Duke
a sons. of Durham, y. c.; Goodwin a Co..
Of New York; and now il is said Allen x
Giutpr If Richmond.