The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1911-10-19
HOW THE TOBACCO
TRUST WILL DISSOLVE:
PLAN TO COMPLY WITH DECREE OF The
SUPREME COURT
DIVIDES TRUST into 4 COS.
Securities tn be Distributed i'm
Shape of Dividends. Submitted
To-MorrON for Approval

lo-Moffow Tor approval.
New York, October 14.-The plan
for the dissolution of the American
Tobacco Company in compliance
with the decision of United States
Supreme Court, decreeing it an IL
legal combination, was officially
made public tonight 1t will be
submitted to the United States Cir
cult Court for the Southern district
o. New York for approval Monday.
1t was decided to make the plan
public prematurely, owing to the
publication to-day of a summary
purporting to be official, but which.
according to Delaney Nicol. coun-
sci for the American Tobacco Com
pany, was incorrect.
Split Into -Four Companies.
The official ballot provides for
division of the American Tobacco
Company into four companies, no
one of which, it is stated, will have
controlling influence in the tobac-
co business. The four companies
are the present American Tobacco
Company, which will continue its
corporate existence; the Liggett {,
Rogers Tobacco Company, which is
to be organized, the p. Lo-illard
Company, also to be organized. and
the R. J. Reynolds Tobacco Com
pany, an existing corporation.
/ Disintegration is to be brought
about by selling $155, 100000 of
the property IF the American Tobac-
co Company, consisting of factories,
brands, business and capital stock
of these manufacturing companies,
now owned and controlled by it, to
the Liggett & Myers Tobacco Com
pany and the 2. Lorillard Company,
for cash and securities of the two
Vender companies, and by diStribut-
ing to common stockholders of the
American Tobacco Company, two
thirds of the stock of the r. J.
reynolds Tobacco Company.
Division of Spoils.
The plan also provides for distrib-
ution, in the form of dividends,
of the securities of the various
subsidiary companies controlled by
the American Tobacco Company,
manufacturing licorice, snuff, tin
foil, etc, to the American Tobacco
Company's common stockholders,
a I'd the division of some of these
subsidiaries, which were held to be
illegal combinations, into separate
companies, having no interest in
each other.
1t provides, further, for radical
changes in the voting power of 90
|
trolled by the American Tobacco
Company through the ownership of
! 56 per cent. of the common stock
which will surrender this control
The principal financial feature of
the plan is an assessment on the
$4O,26O, 400 common stock of the
American Tobacco Co.. amounting
to $50, 1924, or about 81 per
cent. which will be used toward the
proposed retirement and cancellation
of the company's existing bonds
For this assessment, however, the
common stockholders will receive
common stock of the Liggett &
Myers and p Dorilard companies
Division of Production.
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
American Company; 2S per cent to
the Liggett & Myers Company, and
8 per cent 10 the p. Lorillard Com
pany.
The II per cent. of smoking to-
bacco will be divided: 33 per cent.
to the American, 22O per cent to
the Liggett & Myers Company. %
per cent. to the P. Lorillard Com
pany and 2 per cent. to the R. j.
Reynolds Tobacco Company.
The so per cent. of plug tobacco
will be divided, practically 25 per
cent. to the American Company, 81
per cent. to the Liggett & Myers
Company, per cent to the Loril-
lard Company and Is per cent. to
the Reynolds Company.
The 70 per cent. of fine cut to-
bacco will be divided, about 10 per
cent to the American Al nor cont
to the Liggett & Myers Company
and 2S per cent to the Lorillard