The sun., 1896-10-08
FORAPLUG TOBACCO TRUST
ENGLIsH OAPITALIsTs INTER-
EsTED IN THE SCHEME.

They Held or LonE There Seemed
60 ne Apy Chance OF Bryan's Election,
but now They Arc Ready to Invest MIL
lions In Ame rIcH-One Plant HoIdiug Out.
An effort IL being made again by the repre-
sentatives of English capitalists to acquire the
properties of all the manufacturers OF plug TO =
bacco In this country. All that prevents the
contamination of the DEAL so 1t Is snid, Is tho
refusal OF ore OF the largest manufacturers TO
set a price on his property.
When syndicate of English capitalists
bought up American brewerios five or six
years ago. an American promoter conceived tho
idea OF forming tobacco trust with English
capital behind IL. Some of the shme capital.
ists who Lad interested themselves In the brew
cry enterprise were approached, along with
other Briti.hers with money not yet interested
in American enterprises. Many of the Eng
lishmen looked with favor upon the scheme. and
enough capital was pledged to aDquiro a con-
trolling interest In all tho plug tobacco manu-
factories in the country. Having got the capi-
tai pledged. the promoter turned his attention
to acquiring the properties. He got options
from some OF the manufacturers OF plug to-
bacco, but the largest two concerns, the Drum
inond tobacco Company and tho Light &
Myers Tobacco Company, both Of st. Louis,
fatty refused even to consider any offer what
ever for their properties. 1t was believed that
it would be Improbable to investors to form a
plug tobacco trust with these two companies
en- the outside, and 80 the scheme was aban-
doned.
Discussion of IL was not given up, however.
by either the manufacturers here or the capt.
salists on the other side of the water. About n
year ago. or little more, the manufacturers
of plug tobacco began fighting among them
Il,
eryhody else. commercially speaking The
trouble originated when the American Tobacco
Company. made up OF the leading cigarette
manufacturers, began the manufacture of
plug tobacco. This made come Of the old max
ers OF plug tobacco very angry. They pro-
posed to the manufacturers who were less ex-
cited about the matter that the plug tobacco
men should retaliate upon tho American To-
bacco Company by going into the cigarette.bus-
mess. This was strcnuously opposed by tho
more con. ervative OF the plug tobacco manu-
facturers. and the meeting last August, at
which the matter was discussed, was one OF
the liveliest that even the oldest of the plug to-
bacco mon had ever attended Tho result Of
the agitation was that the Drummond Com
pany and the Light IL MYERS Company do
clared that they would manufacture cigar
cites anyway, and they did and nre doing so
now.
The report went abroad after that meeting
thai some OF the plug tobacco manufacturers
were so disgusted that they would like to dis
pose of their properties. This report had no
foundation In fact, but 1t got to the ears Of ono
of the best known law firms II this city, firm
that has done the LEGAL work necessary in tho
,ormation of several trusts, and the old scheme
of forming plug tobacco trust with English
capital behind II was revived.
The situation was gone over C'ifctly 10 ma
out II the properties could he acquired. All
inquiries were made In the most guarded man
ner, aud through persons who had 10 connec:.
tion with the law firm. What was learned
was considered to be encourasing enough for
one of the firm to pack OF to Europe to see
what chance :here was OF securing the neces-
sary capital. 1t was found. at first. that Eng
lish CAPITALISTS would not loJk at american in.
vestments through telescope. They feared
that Bryan would be elected. and were taking
Ing that Mckinley will be elected has gone
abroad in London, and nowit is said, on the au-
thority Of Que OF the manufacturers interested
in the deal, enough money has been subscribed
TO float the enterprise.
The story comes from Cincinnati that Charles
NJ. Lindlcy of that city and Col Joseph b.
been intrusted with the work of securing the
options on the pro;flties; Sether s "i these
ers n this city but II was learned yesterday
from man connected with the law firm men
two Western men have been engaged to secure
options on tie Drummond and Light II
MYERS properties. IL was Sslu yeStorQhy
that Light d Myers had practically ma ned
a figure at which they won id sell. but that
The Drummond Company had declined an
offer nf 81 5000
Aside from these two plants. the one that
Il was difficult to get an option on was that of
tho Pierre Lorillard Tobacco Company. 1t
was not possible, until recently for any ono to
acquire this property even II the owners cared
20 sell. When the preferred stock Of the COM
pany was put on the market few years ago.
the agreement was that the Lorillsrds should
retain the common stock for at least three
years. That time has now expired. so that
should the owners care to sell there is nothing
to prevent them. 1t was said yesterday that
IN option on the Lorilard plant had been OBJ
tanned. This was denied. however, at the
factory IN Jersey City.
A fun man learned yesterday from one of
the parties to the transaction. should IL go
through. that tho whole deal hinges, on the
ability OF those interested r. acquiring the Prop
critics to get option on the Drummond prop
erty. 1t Is understood that the representa-
tlves of the capitalists will offer the Drum
monds $4,000. 900 for their plant. and not q
cent more. Should this offer be accepted the
deal will go through. If not, Englishmen
stand little show of being able to embark in