New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-22
TOBACCO TRUST PLAN,

HAS anything significant developed In
the field of commerce." asked Busy Man
1.-THE American Tobacco Company made
public a summary of the plan for Its as
indignation which is 10 he filed with the
United States Circuit Court. 1t provides
for the distribution Of the property and
business of the American Tobacco Com
pary among three corporations besides IT.
self The five accessory companies which
the Supreme Court found TO constitute, III
ana Of themselves. combinations in re-
ytraint Of trade, are 20 be broken up into
fen more companies. other subsidiaries
are TO he separated from each and all these
fourteen fragments Foreign business is 10
be made independent of the combination by
cutting loose the British-American Tobacco
Company. together with the Imperial To-
bacco Company OF Great Britain and Ire
land. and the abrogation of agreements for
the division Of territory here and abroad
The Uuaed Cigar Stores Company is to ne
freed of domination by the American To
bacco Company by the distribution OF the
two-thirds Of the capital stock held by IL
among its common stockholders. The con
troll of the United Cigar Stores Company
will pass to its present individual stock
holders and the common stockholders OF
the American Tobacco Company, but in
view Of the fact that one-third of its STOCK
is held by persons not connected with the
American Tobacco Company it will not be
in the hands Of the twenty individual
defendants.
THE companies into which the property
and business of the American Tobacco
Company as an operating concern are to be
divided are the American Tobacco Com
pany the p. IOrllard Company. the Lag
gett & Myers Tobacco Company and the
r. ]. REYNOLDS Tobacco Company. The
I.iggctt Company will be a new concern
and the Lorillard Company a reorsaniza-
ton Of the present corporation of that
name. For the factories and brands that
these two take over they are to pay the
American Tobacco Company Sll500'Wo.
This will consist Of and per cent bonds,
per cent preferred stock and common
stock. These will be taken temporarily into
the treasury Of the American Tobacco
Company, which will offer to exchange the
bonds and preferred stock for its own Sc
curities. The common stock is TO be sold TO
common stockholders Of the American To-
hacco Company. The Reynolds Company
I is TO be separated by ulSlIIbutIHB 10 li4'
common stockholders Of the American To-
bacco Company the twO-thirds OF its stock
/ now owned by the trust. In all these four
I companies voting power will be conferred
/ on the preferred stock.
The Independent tobacco interests
planned fight against the proposed reor-
canization or dsintegratiOr by the Ameri-
can Tobacco Company. IT was pointed out
that the chief feature Of the plan provided
for the sale TO various new companies to be
/ organized Of separate portions of the in
. tcIests. manufacturing. copyright and sales
. interests OF the American Tobacco Com
uany and that the new companies were 10
pay for their purchases with their securi-
/ ties. and not with cash. THESE securities
are to be divided among the common stock
holders Of the American Tobacco Com
pany. and thus control of the new com
panies will still he in the hands Of the men
who now control the American Tobacco
Company and who were made defendants
by the government in its suit to dissolve
+ tho trust
The dissolution plans announced by the
/ Tobacco Trust will be measured by the
/ fact as to whether or not they will restore
competitions said Attorney General Wick
eIsham, and if they DO not do so they will
not be- approved by the government
.SreaLfpr of course only for myself |