Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-19
DEAL AMOUNTS TO MILLIONS
Question of Price is About the Only
Thing to Settle.
GIVES THE TRUST A MONOPOLY
Manufacturers Company Owns Nine
teen Factories in New Jersey
and Pennsylvania.

PHILADELPHIA. February 19-If pend
ing negotiations are carried to a success
full conclusion the next week will see the
most important tobacco consolidation that
has been put through since the formation
of the America Tobacco Company in 1904.
The new deal will mean also the absorption
by the tobacco trust of it's most important
competitor in the domestic cigar manufac-
turing field. This is the United Cigar Man
ufacturers' Company of this city, at the
head of which is Jacob Wertheim.
The various parties in the deal would not
discuss 1t yesterday, but 1t was learned
that the basis on which the consolidation is
being arranged will provide for an out-and-
out purchase of the Independent concern by
the American Tobacco Company and al
though persons outside of the principals
who have been in touch with the matter
would not make any prediction to the
outcome, there is general belief that the
sale will be agreed upon.
Price Terms Still to Be Settled.
The question of price is the one now
awaiting determination. both sides being
willing to merge if that can be settled. That
the figure will be substantial one is con-
ceded, even with the $500 OOOO capitalize
ton of the United Cigar Manufacturers
Company a beginning of the reckoning
OF the capitalization of the independent
concern, $5,OO0,O0O is per cent cumulative
preferred and S15, 100000 common stock
The earnings in 1905 after payment of all
charges, were 81 90 1877. In 1904 they were
1882, 1884; in 1903, $9l7.902. and in 1902
$751; ,165. Samuel Untermyer is one of the
attorneys conducting the negotiations but
he declined to say anything about it yes
terday.
The United Cigar Manufacturers Com
pany Is in itself a combination, and repre-
sents the incorporation a year ago of the
United Cigar Manufacturers. into which
were consolidated in 1902 the firms of
Herbs. Wertheim & Schiller; Hirshhorn,
Mack & Co and the Straiton & Storm Com
pany. Those three companies were at the
time perhaps the largest individual pro-
ducers of domestic cigars in the country
and the business has so increased in the
last four years that the yearly output has
aggregated in the neghborhood of 400, O00,-
$50 cigars.
The company owns nineteen different fac
tories in this state. New Jersey and Penn
sylvania Its officers are. besides President
Wertheim. Charles HirShhorn, first vice
president; Frederick Hirshhorn, second vice
president: Edward A. Herbs. treasurer. and
w. A. Shiffer. secretary. The directors are:
E. L. Haas. Charles L. Storm. Louis Schles-
singer and NJ. Samuel Stern. The principal
offices are at 54th street and 81 avenue,
where the firm of Herbs. Wertheim &
Chffer, the principal one in the consoida-
ton. is located.
A Monopoly in Domestic Field.
The American Tobacco Company, which
will have almost unquestioned sway over
the domestic field if the consolidation is eff
fected, is very strongly within the sphere of
influence of Thomas f. Ryan. 1t is a con-
solidation of many other consultations, and
dates in its present shape from 1904, when
the Consolidated Tobacco Company was re-
organized and became the American To-
bacco Company. Up to that time the To-
ha had consisted nripripallIr Of
the American and Continental Tobacco
companies, and controlled them through an
exchange of majority of the common
stock of each for the Consolidated Tobacco
per cent bonds, the preferred stock of the
two principal constituent concerns and a
small minority of their common stock re-
naming outstanding.
The old American Tobacco Company in
turn controlled the American Snuff Com
pany, the Havana Company, the American
Cigar Company, itself a twenty million-dol-
lar corporation; the British-American To-
bacco Company, and the p. Lorillard Com
pany. The capital of the present American
Tobacco Company is $50, 100000 authorized,
consisting of $SO,O0O,OOO per cent cumula-
tive preferred and 500, 100000 common
stocks. OF this amount $7S,6S9, 100 of the
preferred is outstanding and $40, 242 400
common, so that the trust may if the terms
provide, issue additional common stock to
pay for the stock of the United Cigar Man
ufacturers' Company If it sees fit.
The common stock of the American To- |
bacco Company pays 21A per cent quarterly !
and in the last quarter of both 1905 and |
1906 extra dividend of 10 per cent was |
declared The trust has also outstanding |
$56, $50 900 per cent gold bonds and $685. |
4S9, 100 gold As, issued in exchange for the |
securities of the Consolidated and it's con-
stituent companies in the merger of 1904.
The President of the American Tobacco |
Company is James B. Duke, and among |
it's directors are Anthony N. Brady Mr.. |
Ryan, Thomas Dolan of Philadelphia, H. NJ. |
II ,nril1 nd Mt n Go
r. A. c. Smith and P. A. b. Widener