Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-09-25
TOBACCO DEAL COMPLETED.
Drummond Plants I'm st. Louis Sold
to American Company.
Cst. Louis telegram of Friday in New 70

tSt. Louis leleSIdfn Ol fIludy III &NSW lOih
York Herald)
Practically all details Of the negotiations
for the purchase Of Drummond's big to-
bacco plant in this city by the American
Tobacco Company have been closed, and
all that remains to be done to complete
to Mr. Drummond. This. it is said. will
be done within the next few days. and
the Drummond factories will! pass into the
hands Of the American Company.
According to the story told by stock
holder in the Drummond Comp~ly, the
American Company borrowed a large
amount Of stock from shareholders in the
Drummond Tobacco Company, and when
this stock is re-issued in the form OF
stock in the new company the purchasers
will be in a position to raise the amount
Of cash required to buy out the interest
Of the members of the Drummond family.
Upon the same authority it can be stated
that a certain number of the stockholders
of the Drummond Company have agreed
to go into the American Tobacco Com
pany. All the details of this feature OF
the negotiations were closed Wednesday,
when the papers were signed in the pres
ence of President Duke. of the American
Company, and Harrison l. Drummond, OF
the Drummond Company. The former
felt so well satisfied that the transaction
would be completed that he at once left
for New York to report to his associates
In tho American COmDanV
TEN MILLIONS INVOLVED.
The price to be paid for the Drummond
plant is said TO be on a basis Of slO,OOO.Oo.
All this money will not be paid in cash, a
certain number of the shareholders OF the
Drummond Company having consented to
take stock in the new company. This will
cut down the amount of cash that has to
be raised. The presumption is that the
new stock will be issued as American To-
bacco Company stock, although the name
TO be adopted is matter of detail, subject
to change at any time in the discretion OF
the interested parties.
The sale will include the four factories
of the Drummond Company, and the busi-
ness probably will remain under pracu-
| cally the same management as at present.
| There may be some changes in the per-
sonnel of the managers of the plant owing
to the fact that President Harrison l.
Drummond wants cash for his interest
and is said to have been desirous for some
time of retiring from the active manage
ment of the business.
NAME TO BE RETAINED.
IT is understood. however that the tran
sacton calls for the operation of-the plant
under the name of the Drummond To-
bacco Company, as a branch of the Anie-
rican Tobacco Company, the same as the
]. G.. Butler Tobacco Company. which was
sold TO the American several years ago.
and is run as a branch of the American.
| Some valuable real estate will be trans
| ferred by the DrummOnd Company 10 the
purchasers The cigarette factory at
Tower Grove Station, which is one of the
finest plants in the United States, will be
| included. The downtown factories at
| Fourth and Spruce streets are even more
valuable The real estate is situated al
most in the heart of the manufacturing
district. and is improved with as substan-
tial buildings as any in the city.