The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-12-08
AMERICAN TOBACCO co
By Declaring Dividend on Common Stock
Create a Sensation.
TO FIGHT THE PLUG MANUFACTURERS.
Various Reasons Assigned for Pass.
Ing of Dividend on Common stock
Said 10 Bc Because Money WINS
Wanted to Fight Western Plug
manufacturers.

New York, Dec. Ill is only once IN
ionS time that such excitement Is
seen on the floor of the Stock Exchange
as characterized the opening this morn
ing. OF late the Industrial stocks have
been Hcnopolizing the attention OF spce-
| ulators, and each has taken it's turn
| in surprising operators with some wild
| movement.
Yesterday 1t was Chicago Gas which
| doomed up. To-day il was Tobacco
which broke wide open. The brokers
fought and climbed over each ether
To get as near the centre of the crowd
| as possible
When the gavel dropped Il roar as
OF tcmpestuouS explosion burst out
ana holders of American Tobacco stock
who read this morning that the direc-
| tors had decided to pass the quarterly
dividend OF ; per cent. upon the com
mon shares, threw their stocks over in
\ blocks.
The price AT the close last night was
IS9i bid. - asked. This morning II was
6. then I. then s. and then points be-
| low yesterdays last sale In the first
| few seconds after 10 o'clock 5000 sha res
| had been sold at prices ranging from
| 75 down 10 40.
The heavy dealings continued. 600
1000, 5000 ana 1000 share lots being
| thrown over between IL and ~. In the
| first FIVE minutes $1,000 shares had
| changed hands, and the price had set
tied around II to ~. Tobacco shares
arc only so par. so that i'm full shares
Sl.S50.00 had been traded In.
| FOR months. tobacco stock has been
declining on the war with the plug to-
| bacco manufacturers. who resented the
making OF plug tobacco by Il company
which had previously devoted itS,ilf
| TO the production of cigarettes.
| Cigarettes have for some time prac-
| ticdily been given away by both sides.
the plug manufacturers having started
In To make them. The galleries of the
STOCK Exchange were crowded by curt
GUS spectators. who always gather when
such Il movement Is promised
| The cause of the commotion i'm to-
| haoco was an unexpected announce
ment Ivy the American Tobacco Com
pany that while the usual quarterly divi-
dend of > per cent. on he preferred stock
| would be paid In February the custo-
mary quarterly dividend of per cent
on the common due at the same time
| world not be paid.
| The sensational action OF the Ameri-
can Tobacco Directors passing the Feb
! ruary dividend on the common stock
| and the method of making their deci-
sion public has cNeatcd a great deal Of
crs. In order to make their opposition
effective and for Mutual protection II
movement has bean net on foot to form
an association of Stockholders.
j. S. Bache & Co. and l'oiston e.
BASS. both members OF the New York
Stock Exchange, who aNe the head of
| the new movement this afternoon is
sued the following statement:
| TO the Stockholders of the American
| Tobacco Company:
| The recent rema rka hle dcvclopmcnts
| in the affairs of your company. counlcd
with The persistent decline I'm the price
Of your securities. leads us to regard
| the present as an opportunc moment
for the assertion of the rights of the
| security holders We believe that a ma
5ority of the stock is to-day i'll the
hands of the general nublic and not
| represented OH the Board of Directors.
| as At present constituted
| We. therefore. ask the co-oprra ton
| Of our fellow stockholders. with a view
| To secure greater publicity and detail
| IN the cnmpany's rcports. and TO en-
| force adequate representation on tho
board Stockholders are requested to
communicate with either Of the under
| signed, stating the. amount of their
| holdings. ana their addresses"
Secretary Joseph j. Brown. ,-f the
American Tobacco Company. said there
| was a majority of the company's di-
rectors In the factory in West Twenty
| second street Friday and they decid-
ed 10 issue notice that the dividend
I on the common stock would be pass-
! ed.
| We don't call it quarterly divi-
dend. but simply dividend" taid
| Secretary Brown. I'VE first declare the
dividend on the preferred stock and
then decide what we will do about the
common stock. Our surplus of $1,000
| QUO in January last was not in cash. 1t
was represented by investments In our
plant"
The company last summer paid 81, 600, :
| 600 for the cigarette business in Canada
and a% reported $685. 900 for the Hall
factory In New York. These two pur-
chascs equal in amount the compaly's
| esl slimated SURPLUS for lSaI