The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-12-07
Consolidated Next,

Consolidated Next.
rho company paid tho dividend on its
preferred stock, hut tho statement is
sued by the company up To June. 1901.
showed that the common stock or the
company was paying little moro than
onc per cent. In the face OF this bad
showing band OF public spirited indi-
viduals. with Mr.. J.. 3. Duke at Its head, I
organized on June 6, 901, "a third com
pany. under the name OF tho consoli.
dated Tobacco Company. Is & s{{s5
Mr.. Duke was also president OF this
third company. which existed as d hold
mon stock OF both the American To-
bacco Company and Continental Tobacca
Company. A controlling interest was
also secured In tho American Cigar Com,
ipany and In the Imperial Toba eco Com
pany Of Great Britain and Ireland, and
In the Britist-Anlerican Tobacco COM
pany. IS III }4 st
Tho capitalization OF tho Consolidated
Company was:
Forty million dollars of stock and $157,-
$4,000 OF fourlp cent. gold bonds, known
as consolidated As.
During the first year the profits OF tho
Consolidated Company were so large and
the business SO excellent that tie COM.
mon stock OF tho Continental (now held
by the syndicatc) earned twcnty-tlrce
per cent. instead of he Insignificant one
per cent Of tho year l.eforo There were
some knowing holders who did not dis.
pose OF their Continental common stock
TO the syndicate at practically fifty cents
on tho dollar. These fortunate ones later
on sold out their common stock at $500
per share. six times the price paid by
the syndicate.
The Continental Tobacco Company now
practically controlled the tobacco situa-
ton throughout the world, but on Octo-
Der 20, 1901. still another company was
born, under the merger laws OF New Jer-t
sey. The American Tobacco Company.
tho Continental Tobacco Company and
the Consolidated Tobacco Company (this5
last named being the holding company
were merged into one great company.
taking the name OF the Oldest company,
tho .Accrican Tobacco Company.
To the First Love.
So It is that the tobacco trust has re-
turned to Its first love. grown full and
fat and very opnlent. The American
Tobacco Company to-day has practically
absorbed I'LL the companies that have
been formed by the Duke interests. Mr..
James b.. Duke IS president OF the new
company, and Its capitalization is as fol-
lows, In tho order OF their prlority:
SIX per cent. preferred stock.... 1853. 100
Four per cent. gold bonds...... IS ,6S9l0o
Six or cent. preferred sstock...: rs Os!,lOo
Common stock ..5....,5........... 40.242i5o
5(although s100.O0o,000 OF common stock
is autllorlzedD .sa.,.
OF this capitalization tho entire ISSUE
Of SIX per cent. gold bonds VIII be taken
by holders Of the preferred stock IN NE
t(old) American Tobacco Company ana IN
The Continental Company. For each pro
ferrcd share OF American tho holder VIII
receive 81 SO. SO In six per cent gold bonus
and for each preferred share OF Collti-
mental the holder will receive Sll6.66 IN
ak Der cent gold bonds Of the nov Amer
lean Tobacco Company.
Tho four per cent gold bonds ana the
six per cent. preferred stock OF INC no"
company will retire the four per cent.
bond issue Of sl57a7s.20o; Of the Console
gdatod Company tthc holding company.
firty per cent. bonds and fifty per cent
stock and the common stock OF the ne"
company will retire the $4,000 900 o.
stock of the Consolidated Company pay
ing the holders share for share., me re-
mniaing s242,450 OF common stock OF the
new American Tobacco Company WI! re-
tire tho outstanding; common STOCK o. me
S(old) American and Continental Gotllpa-
MES This insignificant amount, less thali
one clbllelll VI Ll's W 49,
sents III that the original stockholders
we're able 10 keep away from MI Duke
and his associates
rho cream in the deal Is tho common
1tock Of the new company. After paying
All dividends ana interest on bonds and
4prefcrrcd stock, the earnings or the new
American Tobacco COMPANY VIII be SUI,
fjcient TO show nearly slLooo'WO rfollt
for tho benefit OF tho common stock or
an earned dividend OF moro tiltlnG2 per
cent. tss.rls ~, I,
svnfllcuto hold practically the entire Issue
n common stock, which stands them
about $50 Dor Share. and which can TO-
day BIO sold on the market lolassoo
This is tho story Of tho American TO-
bacco Company, or rather Or NJ james
,D. Duke, who has dominated every conf
pany, aud who by his vigorous business
meth has made every venture q sue
cess. ..,,.
1t may DO said that the tobacco tfust
Is unlike all other trusts III thnt NC NJ
sidcrs l,ayn taken no risk, y mere ma .
been such II thing, holding the nonlnun
stock and giving the genera, !up,lc ol'ly
tho bonds and preferred obllsallons q
tho various companies. Eetore one u ny
fn,;tsidcrs must bo paid to the uttermost
farthing, but as yet the insiders have not
been called upon to suffer for tho out
slders sake.
Goes to Norfolk.
Governor Montague left COR Norfolk at
four O'Clock yesterday afternoon % PIE re-
side ut the great cdueatiohal lnecung
hal tfl.dH W j . II 4 ? . III $50 4 II I