Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-07-11

absorbed by the American company.
The New York Herald of yesterday
says:
There Is every indication that the Amer
lean Tobacco Company has about COM
pleted what is perhaps. the most Import
ant combination In its history. and by
accomplishing 1t has become one OF the
strongest organizations in the country.
The great manufacturing tobscco-house OF
p Lorillard & co. It is declared, Is about
to join it, merging with 1t business
which has been famous for more than
century.
The American company Is 50 confident
that this combination will be effected that
tobacco jobbers in this city, Chicago. On
cinnati, Denver. New Orleans, ana san
Francisco have been notified privately that
within thirty days the Lorilard brands
will be supplied by the American Tobac-
co Company to their customers.
The representatives Of both companies
refuse To talk about the rumor. Secre-
tary Brown, OF the American Tobacco
Company, in west Twenty-second street,
said that he would not confirm the re-
port, even II It were true.
The basis of the union OF the interests
Of these two great companies r. said 10
be the same as In the case or the smok-
ing-tobacco companies, like the Marburg
mandatory. Upon the official capitallza-
ton OF the company there will be granted
bonds for ~ per cent. of the real estate,
good will ard trade marks. and ~ per cent.
for the stock on hand and contract orders.
INCREASE OF CAPITALIZATION.
This apportlonment, applied to the Loril-
xx.tli n n or
I'm thu capitalization of the American, To-
bacco Company, which has had since July
/ 1893 a CAPITAL Of 100000. OF which w.
600 600 was in preferred stock and SS,vV.Voo
in common stock. The business or the
I.orillard company averages more tndn
100000 a year.
What effect this move, when completed.
will have on the prices OF the standard
tobaccos no one would say yesterday.
That il will have very serious effect on
the $500 Lorillard employees there can be
little doubt. The principle Of the Ameri-
can company has hitherto been by I'M
proved machinery to reduce very mate
rally the cost of labor. The Lorillard fac
tories were established In lI6O, and there
are worklngmen in the employ OF the
family whose t-grandfathers
were apprentices TO the founder or the
house.
Entering the new company VIII not ue
stroy the actual ownership in the Lorillard
| trademarks and manufacturing interests,
for the pres sent officers OF the company
| will become directors in the American To-
bacco Company. The Lorillard directors
are Pierre Lorillard Pierre I.orillard, Jr..
| George -. FINLEY, Ethan Allen, and
George +. Grain. When the transfer Is
made these gentlemen will be elected TO
| the Board OF Directors OF the American
company. II Is known that Mr. Lorillard
| has been distinctly In favor OF great trade
movements like that OF the American
! company for some time. Six years ago
! he entered into an alliance with Liggett
/ x Meyers, OF ST. Louis. for the purpose OF
! compelling the western warehousemen 10
/ tag their hogsheads with the names or
the growers and the condition OF the crop
| at the plantation whence the contents or
! the hogsheads were taken This would
have put Mr.. Lorillard and Liggett Il
| Meyers in practical control OF the whole
output OF chewing tobacco. The ware
housemen fought desperately. and won.
/ A meeting of the directors OF the Ameri-
can Tobacco Company will, IL is said. be
| held this month and an announcement
made to the directors and stockholders OF
the control of the Loriliard company.