The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-10-15
TOBACCO COMPANY
READY TO DISSOLVE
Plan Will Be Presented in the
United States Court for
Approval Monday.
DETAILS OF SCHEME
Trust Is TO Be Divided UP Into
Four Separate and Dis
tinct Companies.
DETAILS OF SCHEME
By Associated Press.

By Associated Press.
NEW YORK. Oct. 1.-THE plan for
the dissolution of the American Tobac-
co company IN compliance with the de-
cision OF the United States supreme
court dccrecing il an illegal combina-
ton. officially was made public to-
night and viii be submitted to the
United States circuit court of the
southern district of New York for ap-
proval> Monday.
The official plan provides for az
vision OF the American Tobacco com.
panv into four eOmpa MES, no one OF
which, il is stated. VIII have con
trolling influence,
The four companies are the American
Tobacco company. which will continuc
in it's corpofate existence; the Ligget x
Myers Tobacco company. which ls TO
be rcorgaui2cd, the c. Il. Lorillard To-
bacco company, also 10 be reorganized,
and the z j. Reynolds Tobacco com
pany. an existent corporation.
Disiutcgration j. 10 be brought about
by selling SllJ.0O0,OO0 Of the property
of the American Tobacco company, con
sistng of factories. brands, business
and capital stock Of tobacco manutnC-
turing companies now owned and con
troled by il. to the Li""et 4 Myers
Tobacco cUmpanv and the G. +. Loril'
lard company for cash and securities
al the two veudsc companies and by
distributing 10 common stockholders Of
the American Tobacco company two
thirds OF thc stock of the r. j. Rey-
n1lds Tobacco company. now owned by
tho American Tobacco company.
Distribution of Dividends.
The plan also provides for distribu
;ion in the form of dividends of the
securities of the various subsidiary com
uRnirs controlled by the American To-
hacco company. 10 the American Iobac-
60 company IS common stockholders and
the division Of some Of these subsidiary
companies. which were held TO be ille-
gal combinations, into separate compa
nies with no interest in each other.
II provides, further, for radical
changes IN the voting power OF the
stock so that the fwenty-uine indlVld.
nal defendants who formerly controlled
the American Tobacco company viii
surrender ;his control.
The principal financial feature Of the
7 Ian Is an assessment on the S4O,26O, 900
common stock of the American To-
haco company amounting TO s36.65
92j. or about 9l per cent. which will
be used toward the proposed retirement
and cancellation of the company S cx-
sting bonds. For this assessment. how.
ever. the common stockholders will re-
ccive common stock OF the Liggett and
Mevers and i. Lorillard companies.
The net result according TO the plans.
will be:
ITO restore lawsul conditions by
dividing the businesses in tobacco and
related products heretofore dominated
and controlled bV the American Taboo.
60 company or companies in which il
has held a large or controlling interest
among fourteen separate and indie.
pendent companies no one of them hav.
lug control of or dominance in tthc
trade as "a any Of the products man
ntactnrcd by II. no one of thcm hay.
ing any dominance or controlling po.