Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-09-29
TO COVER THE WORLD.
FORMATION OF B7D5T1sH-AMER1-
CAN THygsSF.
Will Control the Tobacco Trade-of-
sIEO
fetal Announcement Of the
iers
New Combination.

The first British American trust has been
formed, and the tobacco war which has
waged 80 fierceay between this country and
Great Britain will end today by the fling
of the Incorporation papers In London of
the British-American Tobacco Company,
with capital Of $30O00.0O0
Briefly stated, the effect Of the new deal
will be that the American companies will
control the trade In this country, the Brit
ish companies will control the trade in the
British possessions. and together the COM
bfnatfon will go after the trade of the
rest Of the world.
The statement which makes Official an
nouncement Of the new combination gives
the following details OF the business ar
rangements: ia
Plan Of Consolidation.
"The business of Ogdens Limited has
been transferred to the Imperial Tobacco
Company, and the export businesses of the
Imperial, Ogdens and the American To-
bacco Company and Its allies have been
amalgamated, and q joint company is in
course Of formation under the name of the
Brftish-American Company, Limited. The
result is that the Imperial company will, as
agreed upon 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
trade of the other parts OF the world
The Imperial company Will pay for the
goodwill of Ogden's business in ordd-
nary shares ranking with the similar shares
of the original vendors behind the Ga per
cent preference shares of that company. and
will pay for the tangible assets Of Ogden's
in cash.
"a q in ho
perial board, and the first directors of the
British-American company will consist of
Sir William Henry Wills, j. B. Duke, J. Is.
Cobb, H. H. wills, w. r, Harris, c. Z.
Dula. Hugo Won r. Cunliffe Owen, Percival
s. Hill, Thomas Gracey. w. B. Ogden, R. H.
Walters, Thomas Ogden, p. r. Walters,
Percy Ogden and Harold Roberts.
1.-THE transfer Of Ogdens English business
will take effect September 80, and from that
day it will be in the hands of the Imperial
company.
at Is believed this combination Is the first
attempt to unite any great international in
dustry and its progress will be watched
with interest everywhere. 1t may mark
new development in the direction of Brit
ish and American interests joining hands,
instead Of competing against each other,
In the sphere Of commerce"
Amalgamation Instead Of War.
Referring to the termination of the con-
fiict. an official of the American company
also said: .-a,,r
"we are decidedly pleased at the outcome
Of the negotiations. Not only are
we pleased at the good business deal,
out of which we made several millions, but
we are pleased because the combination
means a real amalgamatfon Of interests, in
stead Of buying off an opposition at a price
which appears to the opponent to be a
profitable figure. Such real working COM
pat Of nh n tsb Inf a. c
as has just been effected will IN any line Of
business unquestionably dominate the trade
Of the world. -.-5
Regarding the details you can say that
the capital of the British-Ar herican COM
pany will be $50, 600, 600 Mr.. Duke will be
president. While it Is convenient to regis
ter 1t as an English companyCand have it's
headquarters in London. we have named
twelve directors and the Imperial COM
.pany's interests have named six. Their re-
spective financial interests are two-th!rds
American and one-third English. There is
nothing to prevent transferring the head
quarters to America If it ever proves more
convenient to operate there. But al present
the business can be best carried on in Lon
don.
Dividing Up the Directors.
eve have named three directors for the
board of the Imperial company. which will
hereafter confine itself to the united king
dom, while the Britisf-American company
goes in for the world trade outside of
the United States, Cuba and the united
kingdom. The Cuban provision insures for
Americans the cigar business of the island,
Of which we now control so per cent. The
Imperial company throws into the new
company its colonial business. So. with our
trade outside the United States the Brit
ish-American company starts with ready
made annual business Of four billion cigar
cites alone.
Regarding the Imperial company's fac
tories in the United States, concerning
which considerable matter has been print
ed in England, they are merely leaf fac
tories and will be operated for that purpose.
1T is the first combination. to my mind,
on right lines. and one that assures real
unity of interests where powerful American
and English concerns go out hand in hand
to seek the trade of the rest Of. the world.
1t has been difficult matter, requiring the
most careful consideration. The negotia-
lions have been proceeding since August 10.
1t was a subject which could not be dis
cussed in the press while they were in
progress, but now that they are concluded
we have decided to issue an authoritative
statement to head off garbIed accounts.
Personally, think the lines on which this
combination is formed are destined to affect
all -,