The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-10-18
HOW TOBACCO WILL DISSOLVE.
PLAN TO COMPLY WITH DECREE
OF SUPREME COURT.

!
panies, Neither OF Which Shall
Have Controlling Interest i'm To-
baccO Business Securities to he
Distributed I'm Shape of Dividends.
New York, Oct. 14.-The plan
for the dissolution Of the American
Tobacco Company, in compliance
with the decision Of the UniteS
States Supreme Court decreeing <
an illegal combination, vas OFF
made public tonight. 1t will be s.
mitted to the United States Circuit
Court for the Southern district of
New York for approval Monday.
1t was decided to make the plan
public prematurely. owing to the
publication today Of a summary pur-
porting to be official, but which. ac-
cordng to Delaney Nicol, counsel
for the American Tobacco Company.
was incorrect.
The official plan provides for di-
vision Of the American Tobacco
Company into four companies, no one
Of which; it is stated, will have a
controlling influence in the tobacco
business. The four companies are
the present American Tobacco Com
pany. which will continue it's cor
porate existence; the Liggette &
Myers Tobacco Company, which is to
be organized, the P. Lorillard Com
pany, also to be organized and the
r. J. Reynolds Tobacco Company, an
existing corporation.
Disintegration is to be brought
about by selling s115,OOo,Oo0 of the
property Of the American Tobacco
Company, consisting Of factories
brands, business and capital stock Of
these manufacturing companies. now
owned and controlled by it, to the
Liggett &. Myers Tobacco Company
and the P. Lorillard Company, for
cash and securities Of the two vender
companies, and by distributing 70
common stockholders Of the Ameri-
can Tobacco Company two-thirds of
the stock Of the r. j. Reynolds To-
bacco Company. now owned by the
American Tobacco Company.
The plan also provides for dis
,rlbution, in the firm Of dividends,
OF the securities Of the various sub.
sidiary companies controlled by the
American Tobacco Company. manu-
featuring licorice, snuff, tin foil. etc.
to the American Tobacco Company's
common stockholders, and the di-
vision of some OF these subsidiaries.
which were held to be illegal COM
binations, into seperate companies,
having no interest in each other.
1t provides further for radical
changes in the voting power of TWEEN
ty-nine individual defendants. for
Eerly controlled by the American
TOBACCO Company through the own
ership of so per cent of the com
mon stock, which will surrender this
control.
The principal financial feature OF
the plan is an assessment on the
s40,26O,4OO common stock of the
american Tobacco Company
amounting to s36,561,924. or about
81 per cent, which will be used to-
ward the proposed retirement and
cancellation Of the company's exist
ing bonds. For this assessment
however, the common stockholders
will receive common stock Of the
Liggett d Myers and P. Lorillard
companies.
1t is set forth that 80 per cent of
the production of cigarettes in the
United States now controlled by the
American Tobacco Company. will
be divided, 81 per cent to the Amer
lean Tobacco Company; 2S per cent
to the Liggett e Myers Company.
and ID per cent to the P. Lorillard
Company.
The ~ per cent of smoking to-
bacco controlled will be divided. 80
per cent to the American, 90 per
cent to the Liggett & Myers Com
pany, % per cent to the P. Lorillard
Company and per cent TO the r.
j. Reynolds Tobacco Company.
The so per cent Of plug tobacco
VIII be divided, practically % per
cent to the American Company. 81
| per cent to the Liggett & Myers
| Company, 3 per cent to the Loril