Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1908-04-24
Pc HSlSTENT REPORT
SAYS TOBACCO
TRUST QUITS
Washington Hears Rumor That
Subsidiary Companies Will
Reorganize Under
New Title.
OFFICERS FEAR
GOVERNMENT SUIT
xlszT
Prosecution VIII be Taken Up
Next Month In New York--Trust
! Is Controlled by Ryan and
MonOpolizes the Tobacco
Business.


spite of the denial made by officers of
the tobacco trust the report still per-
sists here that the trust will dissolve
rather than face tho government suit,
United States circuit court in New
York. One of the attorneys of the
I trust says that several subsidiary COM
panies will reorganize under the title
Of the Federal Cigar company with
w. s. Luckett of New York, now head
of the Whitlock branches of the trust
as president.
1t is believed that the whole Amer
lean Cigar company the American or
United Cigar Stores company, the
American Cigar Stands company the
American Snuff company, the An1eri-
can Licorice company together with
the many underlying and subsidiary
companies composing the American
Tobacco company. will undergo the
same process as that of the three ma
chine made cigar plants, and that
number of supposedly Independent
companies, controlling the tobacco
and paper cigarette, boxes. licorice,
Russian and Turkish cigarette, leaf,
export and other companies, will all
be reorganized under separate heads.
All this, ii Is said, is to be completed
before Congress adjourns.
j. 6. McReynolds, one OF the gov
ernment's special assistants In the
prosecution of the tobacco trust un-
der the sherman law, announced that
he had not heard of the proposed dis
solution OF the combine. Such a step
would be possible, he said, and might
be agreed on without his knowledge.
He would not say what effect a disso-
luton of this kind would have on the
governments case against the COM
bine.
The prosecution has been under
way for months. many hearings have
been held. three thousand printed
pages of evidence collected, and the
arguments on the action for forci-
BILE dissolution are scheduled to come
up in New York on May 10 before
United States Circuit Judge Lacome,
Cox, Ward and Noyes.
The American Tobacco company
was Incorporated October 10, 1904. in
New Jersey, as a consolidation of the
American Tobacco company. the Con-
entail Tobacco company 1t has $4O,-
100000 common stock and $7S,7OO,-
600 preferred stock The preferred
stock has no voting power, that being
solely vested I'm the common stock,
which is limited to 8 per cent earning
power
According to a statement made by
Special Prosecutor McReynolds, the
Fuf h,s he
shows that the American Tobacco
company with its $274,OOO, 900 of as
sets, and the subsidiary companies
with their 500, 900, 600 OF assets, to-
gether with the British American To-
bacco company with It's 500, 900, 900
Of assets-making nearly $500. 900. 900
in all-are controlled by eight men,
or estates
These eight men or estates are
James B. Duke, Thomas f. Ryan, An
thony H Brady, Benjamin " Duke.
COZ. oliyer II. Payne, the estate of the
late William l.. Elkins OF Philadel-
phia. Peter \. b. Widener Of Phila-
G.'nhia, and the estate Of william c.
whitney
Ryan owns $1,000 shares of the
common stock and draws an income
Of nearly $1,000 a day, or 5000
600 year. from his trust holdings.
Col. Payne owns $1,000 shares the
ElkinS estate owns 10000 shares.
President Duke holds 1900 shares,
and George Areuts Of New York city,
one of the original organizers, holds
l2,0vg shares. The trust has been
doinS, until the recent slump. n tre-
men1ius profitable business, paying
as high a. - per cent dividends. The
dividends on the preferred are not
limited in amount.
The trust is controlled by the Ryan
syndicate, which first organized the
Union Tobacco company and then
dubbed the American Tobacco COM
pany into absorbing them at a fancy
price, after which the Ryan crowd
proceeded 70 snatch the reins from
those whom they found in power.
The executive brains Of the trust Is
President Duke, who began life in
the south without means The Il
nancial brains Of the combine, since
w. G., Whitney's death. has been
Thomas F. Ryan.
The tobacco trust has practical
monopoly Of the cigar, cigarette. SNUFF
licorice, cheroot ana chewing and
smoking trade iH North and South
America and Great Britain