New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-29
TOBACCO CO. CROPPING
No Definite Plans for Future
Made. Says Counsel.

w w. Fuller, general counsel OF the
American Tobacco Company, said yester-
day that he and his associates ana OF
ficers OF the corporation had been "orh-
ing on plans for the readjustment OF the
company and It's affairs since the very DAY
the opinion Of the Supreme Court was
filed. but that It would be manifestly I'M
proper for him to give out any statement
as TO the nature Of the plans considered,
because the matter was in court. ana IL
must be to the court that plans were hrst
presented
He said the plans or suggestions OF the
company itself were not yet definite ana
complete, but expressed the hope and be-
lief that they would be approved by the
court as constituting a full and honest
compliance with the opinion OF the Su-
preme Court and that they would ne ralr
10 the holders OF the securities OF the COM
pany.
When asked about the committees
formed for the protection OF two classes OF
bonds and the preferred stock. Mr.. Fuller
said the suggestion that such committees
should be formed came from security hold-
ers and from the Guaranty Trust Com
added that the officers Of the company
were glad that such committees had been
formed and that they were composed OF
men OF such high standing and were rep
resented by counsel OF such high standing
Mr.. Fuller declared the company would
have welcomed helpful cooperation from
any OF It's security holders in working out
a plan, in compliance with the opinion OF
the Supreme Court, In absolute fairness as
between the holders OF the various Glasses
OF the company's securities. He said ne
recognized also that the men who consu-
tuted these ttees-representing, as he
had no doubt they would, substantially all
Of the respective securities-would be OF
very great help TO the company and TO the
court Mr.. Fuller suggested that on ac-
count OF the number Of the holders the
organization Of such committees offered the
only practical way for the security holders
TO exercise their rights in cooperating
with the officials Of the company and the
court in working out a reimbursement of the
company's affairs
Mr. Fuller said there were more than six
thousand preferred stock holders and UNI
doubtedly still greater number OF bond
holders.
An unofficial announcement that the d.
rectors Of the company. were planning TO
declare the usual quarterly dividends both
on the preferred and common stocks has
led some Of the preferred stock holders to
question the right OF the company 10 make
any further dividend disbursements on the
common stock They hold that under the
mandate OF the Supreme Court the com
pany is. for all practical purposes, In
state Of receivership. and that until the
claims OF the bondhoders and the pre-
ferred stock holders are paid in full the
common stock holders are not entitled 10
receive anything, even in the way of
dividend.
one Of these preferred stock holders vent
ured the opinion that II the directors had
the right 10 declare dividends on the com
mon stock there was nothing 70 prevent
their making a disbursement OF 100 per cent
on that issue, OF which they are among
the large holders. Any report that the
board contemplated taking any such action
would not, however. be taken seriously In
Wall Street