The times. [volume] (Richmond, Va.) 1890-1903, 1892-06-07

An Interesting Statement rs TO How the zig
Concern Was Formed


Concern Was Formed.
rrAoro has ALWAYS been great deal of GU
rlositv saws the New York World OF yester-
dav as 70 the incorporation OF the American
Tobocoo Companv. under which guisc the
cigarette trust made its appearance ~ jan.
ua,v 800. It's affairs have always been kept
as secret AS possible by those lp'eIes'cu, nnu
n was MT until last week III 'he TIN n o OK
Theodore L.. Aliens suit 10 Ieooro' .'o' ~
f,oro Allon A Giuter for work III forming 'ne
trust that some interesting uo''"' N'
ganization came TO light. n. ,,,ao-
The following Is the agreement u"uoi
which tho consolidation was lorheu III
..TI,;s ocreoment by and between Ailen d
60 incnrnnratcd under the laws OF the
80 80 Nirginia. ". Duke sons a Co.. IN
c0rnorated under the laws OF INC o'a1e oi
North Carolina. the Kinney 'HNu.' H.
panv. incorporated under 40 ~, do;mo
state of New lof6. GOODWIN vi AZ
n',s,,os. in the city OF New York ana W. =
t',,I.or Il 20 doing business at hochester,
\. N..as iOllows ..., hall ca,so
"r,rst-That the parties hereto shal cause
3. .a 6o~eofter formed corporation 10 DC
inov,n ms the American Iouacc9 C1up"ny
and ID be incorporated uhHe' 'no NV" 81
such state as the counse! Aeie"i'o' ""'''00
',cerord That the directors or trustees OF
,.l'r,'o,et,sp shall be as follows. Lewis
S 49, Richmond Va. James Is. Duke OK
I,'-i,a,, \ q William II Butler OF brOoK-
~, Iomos q Hart OK Rochester and charles
n Emery of Brooklyn. %. WboW Lewis N'H'oI
shall be- president until his successor -
Third The capital stock Of said company
sbsli be -oj ono no. OF which 80 per cent
tc.'etbor with auv residue Of the remaining
ID nor cont as hereinafter mentioned. snail De
,..,ol and aiyided between the parties hereto
"a fpll-paid capital stock IN payment Tor INC
purchase Of said company. from whom re-
spectiyely all the good Will. the plant trade
marks. machinery. leases, patents ana patent
rights and Office fixtures. and ali otueI
property of personal nature now owned py
VI belOuc.ngt0 the parties hereto. excepting
live assets us hereinafter defined. and shall De
issued 10 the said parties N the following pro-
portion.
Alien a. Ciinter. so per cent; W. Duke, Sons
Il Co.. 80 per cent; The kinney louacco
Company. 20 per cent; W. =. hlmoaA ~ OO''
10 Der cent. Goodwin a Co, I'D per cent.
Allen il suing each OF the members OF the
Cigarette Trust for per cent. COMMISSION on
the amount of stock allotted 10 them by inc
trust. 10 Allen A Gintcr WAS allotted : .,OOO'-
900. 10 Duke Sons $1,000 600: The Kinney
Company. 1866 600 KimbaM 4 Co. s2,5555'-
O11 and Goodwin a Co.. 7z,553'OOJ. u ne
RECEIVERS the amount claimed from each Oh
them his commission W.U be t25L.tU. lie -
now secretary for the Trade Marx Assocla'on
OF Tobacco Manufacturers.
Ia lSsG he was employed by Allen 6lnter
as general manager OK their cigarettes on tnls
market tie went 20 them from -. III. NC
ALVIN a Co. lie knew all the big cigarette
manufacturers very well They were cutting
each others Threats with competition ana
costly advertising. which was N Is fair way 10
IA ~ fnpfn 1857 he ITOnDSEl
to Major Giuter 10 form combination or
trust On the same plan As that OF the wall
uaDer trust Major Ginter declined 10 listen
10 trust but thought a comDlna-
ton 4 some kind would be good thing
and save great deal Of money
for all the manufacturers. MT, Amen
saw each one of the manufacturers. put had
the greatest difficulty IN bringing them TO-
rether. Nearly all the heads If the cigarette
firm, were at personal odds and bated each
other worse than poison. Francis ). kinney
believed that on one occasion Charles IT,
Emery and Goodwin a Co. had gwen man.
cial aid 10 his striking employees. ana de-
chned 10 have anything 20 DO with them.
After some months work between them be
got them 10 the point of meeting, but then
neither Mr.. Kinney nor Mr.. Emery would
make The first advance, so he hired room AL
the Fifth Avenue Hotel, where lie hnally IN
duced them 20 meet, and they buleu inc
latclct as tar as outward opportunities NoI''
Then he struck another snag II MAJOR Tin
ter. who for while declined 20 20 into com
bination with Duke Sons because he believed
the concern was tottering and wonid soon 60
under He so far succeeded IN heallhS oiu
differences that in 1883 he got the FIVE manu-
facturers together at the Fifth Avenue Hotel
with a number OF plans before them.
Mr. Allen told about that nTst meeting;
when the Old enemies met face TO face and
began 10 discuss forming a combination 1t
took less than an hour for the knives 10 be
unsheatbed The meeting broke up ia a
storm. Major Glnter withdrew. declaring
that tho other four manufacturers wero try
ing TO freeze him out. Il was some time be-
fore they got together again. They dld,
finally. patch up matters. The trust wa.
formed. Then Mr. Allen put in bis little bill
for work in forming the combination and get,
ting the members together. They all laughed
at him and refused 70 pay him cent. All
this occurred over two years ago but It is
none the less interesting because none OF II
leaked out.