Omaha daily bee., 1902-09-28
TOBACCO TRUST AlRTICHT
Now Oombipatisn Controls Trade Of Wsrld
Under Existing eonditions
AMERICANS AND ENGLISH AIALGAMATE
War for British Market Ends In Mer-
ger and Creation of New Com
psRy and Division of
Territory.

English and American tobacco trusts is at
an end. Referring to the termination OF
the conflict an ofHcial OF the American com
pany said to a representative Of the Associ-
ated Press:
1t Is the first combination, to my mind.
on right lines, and one that assures real
unity OF interests where powerful Ameri-
can and Eiglish concerns go out hand in
hand to seek the trade OF the rest of the
world. II has been a difficult matter. re-
quiring the most careful consideration.
The negotiations have been proceeding
since August i9 II was a subject which
they were in progress, but now that they
are conoludedI we have decided to issue
garbled accounts. Personally, I think
the lines on which this combination Is
formed are destined to. AFFECT the larger
field OF general Anglo-American CONNER
cial returns.
The official announcement shows that the
amalgamation Of the British and American
interests takes the form Of a new company.
to be known as the British-American To-
baeco compeny, in which both the Imperial
and American companies are represented.
The American and Imperial companies agree
to respect each others domestic trade,
while. the British American Tobacco com
pany win compete for the trade Of all the
rest of the world. The papers we're finally
signed today. The new company will be
registered in London on Monday.
Text of statement.
The text OF the official statement is az
follows:
The business of Ogdens Qimited) has been
transferred to the Imperial Tobacco com
pany and the export business OF the I'm
perial Ogdens and the American Tobacco
company and its allies has been amalga-
mated and Joint company Is in course of
formation under the name of the British
American Tobacco company Qimited). The
result is that the Imperial company WILL
as agreed between the hitherto competing
parties, be left In possession Of the trade
of the United Kingdom, while the American
company is not to be disturbed in the
United states or Cuba, and the British
American company will compete for the
trade OF the other parts OF the world. The
American company will pay for the good
VIII OF Ogdens business in ordinary shares,
ranking with the similar shares of the origi-
aal vendors behind the 81 per cent pre-
ferred shares of the company, and will pay
for the tangible assets of ogdens in cash.
j.. b. Duke, r. II. Walters and Thomas
Ogden will be elected to seats In the I'm
Perial board and the first directors of the
BrttisIh1,,;1American I1,;1 company will consist OF
fomSeIt GSD5, H. H wills WI r,. w R. Harris, e. 2.
g. S.rCirdl G. Duis, Hugo yon r. Cunliffe owen,
Ogden, Thomas Ogden. r. II. Walters,
z. r. Walters Percy ogden and Harold
Inc transfer OF Ogdens English business
will take effect September 3d. and from that
day II viii be In the hands of the Imperial
company.
1t is believed this combination is tho
hrst attempt to unite any great interna-
tional industry, and it's progress will be
watched with interest everywhere. It may
mark new development in the direction
OF British and American interests Joining
| hands, instead Of competing against each
other in the sphere of commerce.
Americans Well Pleased.
I'VE are decidedly pleased at the out
come OF the negotiations" said one of the
| officials Of the American Tobacco company.
mot only are We pleased with the good
deal out Of which we made several mil
lions, but we are pleased because the COM
| btnAtion remains a real amalgamation, in
stead Of buying off an opposition at a price
which appears to the opponent to be A
profitable figure Such a real WORKING
combination Of American and English in
| terests as has just been effected will in
any line of business unquestionably DOM
mate the trade Of the world. The capital
Of the British American company will be
thirty million dollars. Mr.. Duke will bt
president. While it is convenient to reg.
lister as an English company and have iti
| III lSOuuOu, we nave named
twelve directors and the Imperial com.
pany's interests have named six. The re.
spective financial interests are two -thirds
American and one-third English. There II
nothing to prevent transferring the head
quarters to America II It ever proves more
convenient to operate there, but at presen
the business can be best carried on in Lon.
don.
I'VE have named three directors for thu
board OF the Imperial company, which will
hereafter confne itself to the United King
dom, while the British American company
goes in for the world trade. outside OF thu
United States, Cuba and the United King
dom. The Cuban provision insures fol-
America the cigar business Of the island
OF which we now control so per cent. Th'
Imperial company throws into the new
company its colonial business. So will
our trade outside the United States th'
British American company starts with
ready made annual business of 1000, ,O0O, ,OOi
cigarettes alone.
Regarding the Imperial company's fac
tories in the United States, concerning
which considerable matter has been printed
in England, they are merely leaf factories
and will be operated for that purpose"
GENTLY KNOCK ON THE NOVEL