New-York tribune., 1911-10-15
s67. 447. 400 s47.552. sol sl15.Oco,OOO

51e bonds ...... I3O5q $50 1O8lT 4dl .. 67T .0J0
- pref stock. i5.3s3 Tla 10 s4l9sl 2o...9' zoo zoo
Common stock. y, 496354 15lsO5u ooo'l''So
Totals .... s67 "a 400 s47. .652 sol S115 600
Tho securities of the Lggett g. Myers
Io0acco Company and p. Lorillard Com
pehA VIII be paid 20 the American IoDacco
company as the consideration for the con-
NeyanceS by IL
The common stock Of the new companies
Will be sold for cash TO the common stock
holders or the American Tobacco Com
panY, thus making what is in the nature
OF an assessment of S6. ,925 on the COM
mon stock Of the American Tobacco Com
pahy. This sum will he used for the re-
tlrement and cancellation OF existing bonds
at par OF the American Tobacco Company.
Each per cent bOndhOlder Of the Amer
ican Tobacco COmpany will be offered 100
In cash for half his holdings. and for the
other half per cent bonds at par, in the
aggregate, OF the Hggett & Myers and
Lorillard companies.
Each per cent bOndholder Of the Amcri-
can Tobacco Company will be offered e5
Ior half his holdings. and for the other half
per cent bonds at par. in the aggregate.
OF the IAggett q Myers and LOrillard COM
panieS.
Each preferred stockholder Of the An1eri-
can Tobacco Company will be offered the
right TO exchange One-third Of his holdings
at par into : per cent preferred stock OF
the Liggett & Myers and L0rillard COM
panies.
E0cct or the CnanGcs.
The effect Of these changes. when made
will be 70 pay OFF the entire bonded debt
OF the American Tobacco Company
amounting to tl04 23e. 80. and to reduce its
assets COrrespOndingly.
II will be left with S52. 459 100 of preferred
stock and s4O.26O 400 Of common stock az
us only outstanding securities. The pre-
ierreO stock will be given full voting rights
and the control Of the American Tobacco
company Will thus pass from the twenty
nine individual defendants TO the holders
OF S2. 10l, 800 preferred and common stock.
Both the preferred stock Of the Liggett q
Myers and Lorillard companies VIII also
have fun voting rights. and the twenty
nine defendants will control neither oi
these companies. The same Will be true
Of the r. j. Reynolds Tobacco Company.
None OF the four companies. the Ameri-
can Tobacco Company, Liggett & Myers
Lorillaru Company and the Reynolds COM
psny, will have any interest IN or relation
10 the other, although at the outset they
Will Of necessity have many stockholders
i'm common.
The American Tobacco COMPANY the
pamphlet asserts. will. under the plan
proposed. dispose Of stocks. factories,
brands and other property earning net
annual income. based on actual results
in 1910, of So. .593,312 Is.
re Cost 10 Stockhoders'
Tire total cost to the common stock
holders of the American Tobacco Com
pauy." the pamphlet continues, "of put
ting into effect this plan Of disintegra
ton. including the increased interest
and preferred dividend charges capital
lied on = per cent basis, the payment
of bonds at above par, the expenses of
the disintegratiou itself and the organi-
zatiou OF new companies, will amount %
al least S22.uOOOUn This amount is
permanently taken from the common
stock holders. i'm addition to the $50
G51. .925 i'm cash that they viii pay and
that viii be used i'm paying OFF the bonds
of the COMPANY i'm order TO reduce its
size
Results of disiutegration are sum
married as follows.
The TIN foil business now done and con-
trClIcd by The COnley Foil Company VIII
he divided into two companies having no
interest whatsoever the one ~ the other
and neither in q dominant position with re-
spert 20 the tin foil business.
The lc0rico business now done and con-
p3ny Will be divided into two companies
with no interest iu nor connection with
epch other. and neither in a dominant posi-
tiGn In the licurlce business.
The American Stogie Company VIII De
dissolved and its business distnteGratcd
The business or the American Cigar COM
Dauy will De disIntegrdted and II Will have
no dominant position In any branch OF the
cigar business.
The snuff business now done and con-
tr0Iled by the American Snuff COMPANY
will be divided into three companies. ihe
American snuff Company itself and two
other companies 10 be organized, and none
of the three viii have any interest IN nor
connection with either Of the others.
The American Tobacco Company, through
distribution out Of It's surplus, will nave
denuded itself OF any interest in or control
over the tin foil business, the hcorlce busl-
ness and the snun business.
IL will have stripped itself Of any interest
in or control over the r. j. Reynolds To-
bacco Company. a company manufacturing
and selling tobacco in the Southern states
IL will have completely severed all rela-
tions with the Porto Rcan-American To-
bacco Company. manufacturing ana sellinI
cigarettes and cigars In Porto Rico and
selling in the United States cigars manu-
Iactured In Porto Rico