The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1896-10-22
BIG TOBACCO DEAL.
Another Gigantic Trust Said to be i'll
Course Of FOrma ton.

Another Gigantic Trust SAID TO De Ill
Course Of FOrma ton.
Another big tobacco trust is said to
be in course OF formation. The capt.
tai enlisted in the scheme, most of
which is Engligh, fools up the neat
sum Of sIoo,ooo,ooe, it is alleged.
Here is the s,nry as ii goes, according
to recent New York dispatch:
One OF the greatest financial deals
known TO the world is on, and we'll
known Cincinna,ian has been hand
ling mos. important feature of the
venture This deal is one similar 10
those by which English capital some
years ago got possession of SO many
American breweries. The Cincinnati
ar who figure SO extensively IN the
present deal is Mr.. Charles M. Lind
lev. As in the case of the brewery
deals, ii is English capital that is seek
ing investment at this time. Their
object is to buy up all the important
plug tobacco manufactures in the
United States and TO pool their out
| put.
Most Of the owners Of the great CON
| Germs engaged In manufacturing the
| weed have Ucen seen and have placed
a valuation upon their plants, with the
intention Of selling TO The Engllshnen.
| This is true also with reference TO
Some well known manufactures in and
about Cincinnati and throughout Obi }
and Kentucky. The owners OF but
one great liant alone seem to- have
objected To selling. That was the
Drummond Company, of S. Louis.
| EvcTy effort WAS made to have the
| DrumInonds set prlce upon Their
property only to meet with a decllna-
nation on their part. Here it was that
Mr.. LiDdley came into play. He was
selected to effect a deal with the
| Drummonds, and at one time it APP
peared he would accomplish what he
set out to do. The first offer made
for the St. Louis concern was $780,
| 900. This sum within the past few
days has been raised to $500, 900
The Drummonds, however, do not no"
appear anxious to dispose Of their val
liable property; at least they are moi
giving but little encouragement to MI
Lindley. The carrying out of the dea
depends upon the capturing Of thel1
plant. Should the deal go through
the entire business or manufacturing
plug tobacco will be capitalized at a
SUN near the SIoo, 100000 mark
Should the Drummonds conclude t(
sell, an amount of English capita
will come into America as great as TIT
last Cleveland bond deal.
Another account says:
The American promoters Of tn
trust, when they first conceived it
formation, sought English capital t
further their scheme.
Having secured this, they got op
tons from all of the manufacturers c
plug tobacco, except the Drummon'
and the Light & Meyers companies
OF St. Louis.
These two companies refused all OF
, fers for their properties, and it wa
decided that it would be useless t
! form trust, with those oompanic
: out. The scheme was, therefore, TEN
porarlly abandoned.
When the fight between the Amer
can Tobacco Company, made up {
. the leading cigarette manufacturer:
!, and the plug tobacco manufacturer
broke out, resulting in the manufactu1
by the former of plug tobacco and til
retaliation of the plug tobacco mani
. facturers by manufacturing cigarette
it was reported that the plug Tobacco
= manufacturers were SO disguised thu
:, they would like to dispose of the
y properties.
Acting on this report, the promotes
of'the trust again approached the fat
tory owners, and the work of securin
n options on the property of the v;
rious plug tobacco manufacture
}. has been proceeding quietly evt
/. since.
It 1t is said that Light & Meyers ha,
y practically named a figure at whic
), they would sell, but that the Drum
Il mond Company had declined an off
- Of sI,5oo,ooo.
:, Aside from the Drummond an
:. Liggett & Meyers companies it W;
# difficult to get an option on the Pier
IF Lorrlllard Tobacco Company becau
h of certain stipulations regarding tt
l. time the Lorlllards should control II
1t company.
e This period has now expired and
. SAID that an option on that plant h
also been obtained.
=, The whole thing hinges on those il
J. terested in acquiring the properties
e get an option on the Drummond pro-
n erty. 1t is understood that the repr
J. sentatves Of the capitalists will off
IS the Drummonds SS,ooo,ooo for the
l. plant and not a cent more. Sbou
= this offer be accepted the deal will
through. II not, Englishmen star
q little show Of being able 10 embark
r. the tobacco business in the Unite
- States.