New-York tribune., 1896-04-03
A TOBACCO DIIIDEND.
IT MAKES WALL. STREET WONDER WHY
THE ONE DUE IN FEBRUARY WAS
pAssED-AN INVESrIGATION.

Tho outhorl,,es OF the New-York Stool; Exchange
VIII look into the circumstances attending the oHs-
s,on OF the dividend on the common STOCK OF the
American Tobacco Company, otherwise he 'ls"'-
otto rrr-, which was due February ]. ana the
declaration on wednesday. after the close OF INC
stock market, Of n dividend OF per cent In cash
md N per cen, In scrip on the common, payaoie
May l. Up to February per cent quarterly u'''-
dend had been paid regularly on the common anu
2 per cent on the preferred The DIVIDEND on 'ne
preferred rot interrupted. but the explanation
was made tina, the dividend on the common was
surpeniei because the company desired 20 use '"e
money to extend rs operations.
Tn. supposition IN Wall Street was that the real
reason for not paying the dividend was that 'he
company's profits had been cut on by It's hsh'
with the makers of plug tobacco. The company en-
On r.d in the manufacture Of Plug tobacco and the
proiucer, OF this form of the weed started IN as
a retala;ory measure to make cigarettes. The war
fare has continued with increasing enersy 10 oa'e'
II the company could no. earn the dvideha "ue
February It hard for the street 10 see now IL
had earned one since. The explanation lot 'ne
peyment OF the scrip dividend was that 1t was
d,vlson Of part OF the company's surplus repre-
scnted by purchases Of ne" business anu rss
ou, OF ea,nnSs he f9a % nnq ssn, scrip dividend
The rommon stock on Information that the Fseru,
AIRY Dividend would no, be paid declined to % on on
Dccenber last The Wall Street idea ~ tha' Ods ane
n'ss!s pGEH afe qP cosed fssa on a1o n
sad to nave e, sesvea S e thce cent F scrip dividend would
carry the stock to ilo at least. at which price they
ccrn,ed on selling en 10 erowd e Of brokers' around
N. Tobacco post, when the Stock Exchange opened
" exccy orders There we're few sales OF the
common stock a sj but the price soon atopp"n ~
aeain 10 sO,, but hraliy closed at St. precisely
the same as on Wednesday afternoon SO ina. that n, no
,n,-k.t value whatever added 10 the stock py
the cash and scrip dividends on H. the sales We're
5000 shares, but as the stock Is mali sao'k, ro OF
yalu Of N
sen,ed oniy AGO shares OF ordinary full stock
Th @ only m The he share and Resulted
loss of half point In the price from '"e ""' W.
There was "A great deal OF talk and general con on
deraDation in Wall Street OF the policy OF the 10
bacco Company II there was an attempt on on the M
mart Of any interest In the company 10 work the
public IT aid not succeed. FOR the public did not buy
he stock The understanding is that the stock OF
any extent, bu, has remained principally In & the
hands OF those to whom It was originally issued
Whether correct not, the belief has been n that
manipulation OF the stock Was underaken % to put III II
market APPEARS to have been extremely clumsy.
II is reported that many OF the banks and other
| lenders OF money have refused to accept Tobacco
stock az collateral for loaps T.. -, ..,
An episode related TO the movement In inc STOCK
Of the American Tobacco Company was Vas me 'nuct ss
ment on Wednesday by The Grand jury OF James n
Madedh on "nd tho 1o' National % Cigarette and Tobacco
Company, a competitor OF me American Company
nected m ted Win l. Hudson CO.. stock brokers' at No
"a wa-st, and Mr. Kirby is an exporter at No t,; 80
1t was alleged that they caused the publication by
financial news agency, OF two items. the hrst or
which said THE National Cigarette Company top-
I,,on, ha. closed down" The second item said:
I'VE understand the Tobacco people are In confer
| ence to-day No explanation Is yet given OF tho
| shutdown OF the Admiral tNationaD Company.
| Developmcnts h!ntcd at - .
| Middcdith and Kirby were put under $.1V bail
| o."h They will plead TO the indictments Monday.
The report in Wnil Street was that the Indictments
| were procured because the National company pc
| teres, OF the American Company. The maximum
naI,v In case OF conviction would he three years
| ln nrsop and S. O0o nne Middlelh and Kirby made
| ,h.