The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-08
TOBACCO TAKES A BIG TUMBLE
1T BREAKS NINE POINTS ON THE
PASSING OF A DIVIDEND.

The stock Thrown Overheard in Big
Blocks on the Opening of the Ex-
change-BrOlSers Climb over Each
Other I'm n wild Scramble to I'm
IOad-The Company Issues a Sugar
Coated Statement Accounting for
Its Action.
New York, Dec. lit is only once in a
long time that such excitement is seen
on the floor Of the stock exchange as char
aoterized the opening this morning. OF
late the industrial stocks have been mo-
nopolizing the attention of spectators
and each has taken its turn in surprising
operators with some wild movement
Yesterday it was Chicago Gas which
doomed up. To-day it was Tobacco which
broke wide open. Before the chairman's
gavel dropped nearly every broker on the
floor was about the tobacco trading post.
They fought and climbed over each other
to get as near the center of the crowd as
possible. When the gavel dropped a roar
as of a tremendous explosion burst out,
and holders of American Tobacco Com
pany stock, who read this morning that
the directors had decided to pass the
quarterly dividend of 3 per cent upon
the common shares, threw their stock over
IN blocks The price at the close last
morning it was offered points
dawn, then 5, then 6, then T. then
and then points below yesterdays
last sale. In the first few seconds after
10 O'Clock 5000 shares had been sold at
prices ranging from 70 to TO- The heavy
dealings continued-l,OOO, 1900. 5000 and
4,000 shares lots being thrown over be-
tween II and r. In the first five min
utes $1,000 shares had changed hands, and
the price had settled around II to u. To
bacco shares are only $50 par so that
in full shares 81, $50, 900 had been traded in.
For months tobacco stock has been
declining on the war with the plug tobacco
manufacturers, who resented the making
of plug tobacco by a company which
had previously devoted itself to the pro-
Cigarettes have for some time been
practically given away by both sides,
the plug manufacturers having started
in to make them
The galleries on the stock exchange
were crowded by curious spectators, who
always gather when such a move is
promised.
An advertisement published to-day
reads:
To the Stockholders of the Amer
lean Tobacco Company-The usual quar-
terly dividend of per cent. on the pre-
ferred stock of this company will be paid
in February, but no dividend will be paid
at that time on its common stock. It Is
estimated that the years earnings will
permit an addition Of 81, 10000 to surplus
after paying 5 per cent. on the preferred
and nine on the common stock. Owing
to increased business and newly acquired
plants, the company requires more cash
working capital than heretofore The
management, therefore, considered IL nec-r
esssary that the sum required for divi-
dends on the common stock be, instead,
applied to working capital. Thus the
business of the company can be properly
cared for and extended without departing
from its consistent policy Of not bor-
rowing money and its assets kept as they
now are, the free and unencumbered prop
erty of its stockholders.
The sensational action of the American
Tobacco directors in passing the Feb
ruary dividend on the common stock and
the method of making their decision pub
lie, has created a good deal of dssatis-
faction among local stockholders. In or
der TO make their opposition effective,
and for mutual protection movement
mas been set on foot to form an asso-
citation OF stockholders. J. S. Bache &
Co., and Rolston and Bass, both mem
bers of the New York Stock Exchange,
who are at the head OF the new move
ment, this afternoon issued the following
statement:
To the Stockholders of the American
Tobacco Company: The recent re-
markable developments in the af-
fairs of your company, coupled with
the persistent decline in the price of your
securities, leads us to regard the present
as an opportune moment for the assertion
of the rights of the security holders. We
believe that a majority of the stock is
to-day in the hands of the general public
and not represented on the board of di-
rectors as al present constituted. We,
therefore, ask the cooperation of our
fellow stockholders, with a view to Sc
companys reports, and to enforce ade-
quate representation on the board. Stock
holders are requested to communicate
with either of the undersigned, stating
the amount Of their holdings and their
addresses.