New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-04-28
VW:JERA! NFNS
" ~, ~
M INJUNCTION YET.
c''"' ~ REGARD TO THE AMERICAN
TOBACCO COMPANY.

hoord nv Chancellor McGI In Jer-
Argui .,orday on the application 10 restra"
W ."' .,c,n Tobacco Company the aIeseu e,s"
the AIM" tron issuing scrip equivalent 10 ~ pei
cite u,'."S.nd on the common STOCK Inc app"
cent NV r,ade by Dickinson. thompson
ton "S =, behalf of Frank Heilman HAM, VIM No.
yss,e'' " - nreserred stock. The prohts OF last
ten shares VI ,,roo that the directors decided to
gear "eie ,ord Of per cent on the preferred anu
declare o, and the scrip for 20 per cent 10 INC
common 49, common stock. Hall asks Tor tenn
holders ,.,rrction TO stop the issue OF the soi.p
porsi' 10 contended that 1t would De uhia"iu
BIS ,a violate the conditions uhuer wiz" Wv
sna W. s.ock was issued as stipulated III 'He 0'''
preie letter They also asserted that me "e'
ps! be depleted and no money "ou,u NC ~
uy "0" COR the benefit of the holders OF the pre-
ma stock ii the contemplated eAp1 ~
fs'Tea the extension Of the business anu INC
si0M"" o ~ meet the 20 per cent extra dividend
heavy u'~ ,,Sm, ~ the common stock were not pre-
TO the NO.. ,ho whole surplus would be extngushea
vh'eu @,r,ber alleged that the company IS suiitS
II was i Luz the laws Of Ncw-Jersey as II Is "a
e-s,no,,on in restraint or traoe.
eomona commended that the company s
hi' ,,.os the preferred stock certain advantages
en to ., ner cent scrip were issued INC co'i'i''o
o." = r.ould receive the preference. Inc issue u
SoeA ..o,,d create an indebtedness OF Saooooo
hafc
payaple ,a their share. The preferred STOCK, pe
would reee..anded to be more valuable than common
nd IS IN ,he holders Of the latter compose ma
COCK Ds' ~ stockholders and outvote the hoIuers
PIT! q srtorred stock. He expressed DOUBT OF INC
the .hs company to pay the per cent interest,"
soihiy " 9.saS,sdness IL the company De aLoWcu 20
on the NM ~ 1000 OO0 He maintained that uh9sr
dis0ulse u. hs surplus beyond the amount SET asi9e
Us cAaI v,rg capital and after paying dVuenos
for hs divided pro rata among stocknoiuers:.
snou sasSS,ri Y Lndabury held thar the COMPANY
h i., when organized. vas SzoWVWJo OF VIII Will
caplia VIZ" as common stock and $l0O0OVoo preterreu
ShNunST, w. o-eserred stock WAS entitled 10 yearly
sloesh ~ per cent. The capital STOCK hau Dseu
divoenaa y n SiC1NG10 The surplus on DeceHper
inei ,ssS was SeN3n S. and the total cvideho ue
81 ~ an common stock cash ana scrip Wa
saIsa the preferred stockholders have TeSeyeu
&s@e" 49,. nv cent and the surplus, ssGco,$Il g. pc
, ,neu n The common stockholders. pc nelu tla'
9nss ,rocssding Was perfectly legal, ana ne as
me 1SaT The action was Instituted in the hope
ssis;sssovnr the company. and was Drought Ds o"e
.. ,o oi rot n bona fde stockho'der $780,
w" N rhonnson defended his client. ana charac,
., -. the attack upon him as cutliensn Siouu
" mnrmtt the defendants 10 escape he urgcu that
70 w ,amnorarv Injunction asked for be granted.
w Enlier for the company held that unuer
hn ,aw the preferred stock could not De pao untii
~ he claims OF the company had pecn me,
a. s should be ordered. The scrip issue ne
ooosnssnded aid not reduce the assets OF the COM
pany .,eoata q, organization does not
bu. y yo N issue scrip" Mr.. Thompson re-
Walked This was not disputed by counsei lot Tue
comrany. :, -. ...or- o,d reearved de-
The Chancellor tooA 'i'o P"fN'" $500
nS