The Birmingham age-herald., 1911-10-15
TOBACCO COMPANY WILL BE DIVIDED
 INTO FOUR PARTS
Dissolution Plans of Cor poration Are Officially
 Announced
SUBMIT PLANS TO
 THE GOVERNMENT
Provides for Radical Change in Voting Power of the Stock of the Twenty-Nine Individual
 Defendants

Defendants
 New York october 1.-The plan for the dissolution of the American Tobacco com pany in compliance with the decision Of the Cnited States supreme court decree ing it an illegal combination was of- hcially made public tonight. It will be submitted to the United States circuit court of the Southern district of New York for approval Monday. It was de- oided to make the plan public premature ly, owing to the publication this att5r- noon of summary purportmg to be of ficial, but which otherwise, according to Delancey Nichol, counsel for the -Anlcri- can Tobacco company was held incor rect
 The official plan provides for division of the American Tobacco company into four compa nies no one which. it was stated, will have & controlling influence in the tobacco business. The four companies are the present American Tobacco com pany, which will continue it's corporate existence. the Liggett X Myers Tobacco company. which is to be organized; the llbi llolu tOlllpdnN, tieO No bt Di 3'ii ized.
 Stock to Be Sold
 Disintegration is to be brought abodt by selling sl15,e00,000 of the property of the American Tobacco company, consist ing of factories, brands. business 5nd capital stock of the manufacturing con- cerns, now owned and controlled by 1t to the Liggett & Myers Tobacco company and the P. Lorillord company for cash and securities of the two Vendee com panies by distributing to common stock holders of the American Tobacco com pany two-thirds of the stock of the k. J. Reynolds Tobacco company, now owned by the American Tobacco company,
 The plan also provides for distribution in the form of dividends Of the securi- ties of the various subsidiary companies controlled by the American Tobacco com pany. manufacturing licorice, snuff and tinfoil and other articles to the American Tobacco company's common stockholders and the division of some of these sub sidiary companies which were held to be illegal combinations into separate com panies having no interest in each other.
 Changes in Voting Power
 Further it provides for radical changes in the voting power of tho stock of the 29 individual defendants who formerly controlled the American Tobacco company through the owner ship of 55 per cent of the common stock. This control will be surren- dered. The principal financial feature of the plan is an assessment on the $40, ,260. 400 common stock of the Amer ican Tobacco company amounting to s36,651.325 or about 91 per cent which will be used toward the proposed re- tirement and reasonable cancellation of ha 1t'e wi hnndS this assessment, however, the common stockholders will receive common stock of the Liggett & Myers and P. Loril- lord companies.
 It is set forth that the 80 per cent of the production of cigarettes in the United States now controlled by the American Tobacco company will be di- vided practically 37 per cent to the American Tobacco company, 2S per cent to Lggett & Myers Co.,, and 15 per cent to the P. Lorillord Co. The 77 per cent of tobacco stock controlled will be divided 33 practically to the Amer ican Tobacco company, 20 to the Lig- gett & Myers Co.,. and 22 per cent to the F. Lorillord Co.,, and to the k. J. Reynolds Tobacco company
 The so per cent of plug tobacco will be divided practically 25 per cent to the American Tobacco company, 34 per cent to Liggett & Myers, 33 per cent to the Lorillord O., and IS per cent to the Reynolds company. The 79 per cent of fine cut tobacco will be d- vided about 10 per cent to the Amer ican Tobacco company. 4 per cent to Lggett & Myers, and 2S per cent to the Lorillord company. The IS DOT cent of cigar manufacture controlled will be divided about 6 to American Cigar company, 6 to the Lorillord com pany and one to the American Stogie company. The 93 per cent control of little cigars will be divided.
 The 93 per cent control of little cigars will be divided about I6 ,to the American Tobacc cornpdny, Al hto Liggett & Myers and 34 to the Lorillord company The 90 per cent of the snuff business will be divided pra ctically 32 per cent to the present American Snuff company, 30 per cent to the George w .Holme company and 2S per cent to Weyman & Bruton Co. the lat ter two companies to be organized.
 Each preferred stockholder of tho American Tobacco company will be of fered the right to exchange one-third of his holdings at par into per cent preferred stock of the Liggett & Myers and Lorillord companies The effect Of these changes when made will bc to pay off the entire bonded debt of the American Tobacco company amounting to S1U4, ,23b,15O, and 10 reduce It's .as- sets correspondingly E It. will be left with $52.459,500Sof the preferred stock and s40,260,400 of conimon5 stock aa It's only outstanding securities The spre- ferred stock will be given full voting rights and the control of the American Tobacco company will thus pass from the 29 individual defendants to the of ss2.71a,sO0 pcrferrcd anl stock. The preferred stock of both the Liggett tS Myers and Lor- illord companies will also have full voting rights and the 20 defendants will control neither of these companies. The same will be true of the I. !. Reynolds Tobacco company. None of !he four companies will have any in- terest in or relation to the other, al though at the outset they will of ne- cessity have many stockholders in common
 No small group of men. not even tha os individual defendants in the aksra- gale will have control of any or the accessory or subsidiary com Iianies, the plan states.
 The total cost to the common stock holders of putting the plan into effect 1t Is set forth, including the Increased interest and preferred dividend charges, capitalized on 8 j per cent basis the payment of. bonds at above par. the expenses of disinteSra lion ii sef and the organization of the new will amount to at least $2e.-