New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-03
DECLARE TOBACCO PLAN
MEANS WORSE MONOPOLY
Richardson & Co., a Subsidiary,
File Protest Against Its
Adoption.
MAY GO TO HIGHEST COURT
Reorganization Scheme Provides
Three or Five Corporations,
with Vast Capital, to
Take Trusts Business.

The general outlines Of the reorgani-
ration plan OF the American Tobacco
Company. which is 10 be submitted TO
the United States Circuit Court this
week. We're learned definitely yesterday
through the filing of a protest against
the adoption Of the plan by r. p. Rich
ardson. jr., & co.. of Reidsville, y. c..
As told exclusively in yesterdays Trib-
une. the plan is considered by the inde-
pendent tobacco interests a virtual con-
tiuuation Of the monopoly under three
masks, and the government is expected
10 file it's objections shortly after the
American Tobacco Company has put the
plan on record by filing it in court.
The plan as II appeared from the ref
erences in the petition Of the Richardson
company provides:
The formation of three or five corpora
tions. with almost unlimited capital and
resources, to take over the business OF
the Tobacco Trust.
Assets Of $l70.OO0,O0O now held by the
trust are to be retained by the original
American Tobacco Company TO pay off
the obligations Of the Tobacco Trust,
bonded and otherwise, as they mature,
some Of them not becoming due until fifty
years hence.
other bonds and the preferred stock Of
the American Tobacco Company are 10
be exchanged for similar securities in
the new companies.
The common stock Of the American
Tobacco Company is 10 be exchanged for
common stock i'm the new corporations
on such basis as TO insure TO present
holders Of the trust stock correspond
ing share in each of the new companies.
Would Violate Court Ruling.
Describing the main features Of the
reorganization plan Of the American To-
bacco Company as about 10 be submitted
10 the court r. F. Richardson. jr.. & CO.
stated in their petition that they were
advised rs tor the contents of the plan
only as fully as il had been outlined at
the conferences in the Federal Building.
AS far s they were advised, however,
they saio. the plans presented and 10 be
presented by the American Tobacco Com
pany and its allied interests were not in
accordance with the Judgments and de-
crees OF the Circuit Court or the opinion
and mandate Of the Supreme Court.
The petition goes on 10 say:
Your petitioners respectfully insist that a
reorganization Of the American Tobacco
Cou1nanv and its allied corporations and
controlling individuals as now proposed 20
the court would be simply leaving the orig
tnal promoters OF the great scheme 10 mo-
nopOlize the tobacco business IN stronger
DosftfOn than they held at the commence
rnent OF this suit The plan proposed has
no effectual safeguards 20 prevent all the
companies created out OF the elements now
united from being really, though secretly.
controlled by the same interests as al
,res.nt and your petitioners ask that such
conditions should be made So that a real
independent concern can 1--we and do busi-
ness without being subjected 10 the ruin
aus and unlawful methods Of unfair COM
p.tition which have been condemned by
he Supreme Court Of the United States in
this case.
The suggestion was made that any
plan of reorganization should make all
the companies that We're once indepen-
dent really independent again Unless
this be- done. the petitioners said. and
erectual safeguards provided 10 create
and permanently maintain such real
separation and independence conditions
might be made much worse IN the future
than they have been In the past for
nm .ixth mas.