New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-30
Theory of Advance in Price.


one surmise as 10 the reason for the
sharp advance in price after the Standard
oil decision was that the controlling in
terests in the tobacco company were pre-
pairing for possible order by the Supreme
Court for its dissolution. and had planned
10 exchange its shares for securities in
subsidiary companies, which would be list
cd on the New York Stock Exchange and
would find n reader market there If their
bringing out price should be based upon a
high quotation for the stock o: the old
company.
There is outstanding S7S.ss9.lO0 per cent
cumulative preferred stock Of the Amer-
can Tobacco Company. which is listed on
the Stock Exchange. II closed yesterday
al l0li. This issue has preference as to
assets in case of liquidation OF the COM
pany 10 it's full par value and accrued
dividends. II has no voting power at an
election of directors Or at any meeting of
stockholders, except as expressly provided
by statute.
The per cent bonds, OF which 1854 800
are outstanding. were issued in exchange
for old American Tobacco Company pre-
pany preferred. The SIZES 200 per cent
bonds were. with the 6 per cent stock. eA-
changed for the old Consolidated Tobacco
per cents, while the American oDacco
and Continental Tobacco common stock
received in exchange common stock OF
the preson, American Tobacco Company.
The per cent bonds closed Yesterday a,
i097s. having advanced lss points. and the
Is closed unchanged at SIS Neither of
these securities Is a mortgage issue. and
the fact IF the wide divergence in price
between them makes IL open to question
that the plan of reorganization following
the dissolution directed by the highest
court will involve their retirement. a. each
OF the issues is entitled 10 receive par II
the event Of dissolution. like the preferred
stock. which is ruling close to that figure
II the bonds and the preferred stock arc
20 be retired at par. the common stock VII
be placed in possession OF the rest OF the
great assets OF the company, A posse sion
which would justify the high price al
which 1t is quoted. The ownership ot the
common stock Is chiefly lodged IN a Re"
hands Herbert Knox smith. head Of thc
Bureau of Corporations. IN report &c
the President IN February 1909. said that
90 per cent OF the common stock outstand
ing. the amount being $io.2i2ic "hicf
through its voting privilege. controls the
entire tobacco combination, was owned b,
ten interests most OF whom were directors
OF the company.
These were James +. Duke. the presi
dent Thomas + Ryan. Anthony y. Brady
+. \. Il Widener. Oliver n Payne. who !:
also one OF the heaviest stockholders In the
Standard On Company: Grant p. Schley
q y Duke the Arm of Moore Schley
chiefly as agents for customers. and the es
tatos Of William G. whitney and william
j.. Elkins.
In list Published a few months later
the holdings If these Interests were Gitoi
as follows James Il. Duke. $4,000 share
tpar 5000 Thomas +. van. 10000. \
y. Brad. 33.33f. -. n PAYNE $685.
f. ~ b. 0idoncr. $1,000. q. Il. Schley
zoe. Moore & schloy. 5l,ib2 estate nj
william G.. Whitney. 29.s3i. and w l.
Eikins estate. 1928 shares
AZ the same date there were ten othe
stockholders owning from 1000 To 100
shares each. seven with holdings Of NOR
than 1000 and less than 5000. and twenty
FIVE owning each from 1000 TO 1000 shares