The Wilson times. [volume] (Wilson, N.C.) 1896-19??, 1911-10-17
OF
A. I. CD.
THE DISTRIBUTION WILL
MADE INTO FOUR SEPARATE
COMPANIES
THE MODUS OPERANDI

the dissolution of the American To-
Dacco Company in compliance with
the decision of the United States Su-
preme Court decreeing it an illegal
combination was officially made pub
lie last night. It will be submitted to
the Unittd States circuit court of
the Southern district of New York
for approval Monday. 1t was decided
TO make the plan public prematurely
owing to the publication today of a
summary purporting to be official
put which, according to Delaney Mic
hon, counsel for the American To-
Dacco Company, was incorrect
Ihe official plan provides for di-
vision of the American Tobacco Com
pany into four companies, no one of
which, 1t is stated, will have a con-
trolling influence in the tobacco bust
ness.
The four companies are the pres
ent American Tobacco Company in
which will continue it's corporate ex,
1stence the Liggett & Myers Tobac,
co Co., which is to be organized; the
P. Lorillard Company, also to be or
ganlzed and the r. J. Reynolds To-
bacco Company, an existing corpora
ton. Disintegration is to be brought
about by selling $115, 100000 of the
property of the American Tobacco
company consisting of factories,
brands, businesses and capital stock
OF tobacco manufacturing companies
now owned and controlled by it TO
the Liggett & Myers Tobacco Co.,
and the P. Lorillard Company for cash
and securities of the two vendee com
no nj nd 6xy 1ir%~
mon stockholders, of the American
Tobacco Company two thirds of the
stock OF the r. J. Reynolds Tobacco
Company, now owned by the Ameri-
can Tobacco Company
The plan also provides for distri-
button in the form of dividends of
the securities of the various subdi-
lary companies controlled by it to
the Liggett e Myers Tobacco Co.,
and the P. Lorillard Company for
cash and securities of the two ven
dee companies, and by distributing
to common stockholders of the Amer
| lean Tobacco Company two thirds of
| the stock Of the R. J. Reynolds To-
| bacco Company now owned by the
| American Tobacco Company.
The plan also provides for distri-
| btion in the form of dividends of
| the securities of the various subsid-
| iary companies controlled by the
American Tobacco Company, manu-
featuring licorice, snuff, tinfoil, etc.
to the American Tobacco Company's s
common stockholders and the div;s-
ion of some of these subsidiary com
panies, which were held to be illegal
| combinations, into separate compa-
nies, having no interest in each 9th
| er
1t provides further for radical
changes in the voting power of the
| stock so that the twenty nine indi-
vidua1 defendants who formerly con
| trolled the American Tobacco Com
pany through the ownership of fifty
six per cent of the ommon stock, 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 Company amount
ing to $50, 6,641, ,215 or about 81 per
cent which will be used toward the
proposed retirement and cancellation
of the company's existing bonds. Fol-
this assessment, however, the com
mon stockholders will receive stocl
Of the Liggett e Myers and P. Loril
lard companies.
1 1t is set forth that the 80 per cent
Of the production of cigarettes in the
i United States, now controlled by the
American Tobacco Company, will be
divided practically 81 per cent to the
American Tobacco Company, % pc
cent to Liggett & Myers Co. and Il
per cent to P. Lorillard Company
The II per cent of smoking tobacco
: Company; 20 per cent to the Ligget
& Myers Co., and % per cent to the
; P. LorilFard Company and to ths
r. J. Reynolds Tobacco Company.
The 80 per cent of plug tobacc;
will be divided practically 25 pc
/. cent to the American Tobacco Com
; pany, "a per cent to Liggett & My
+. ers and 8 per cent to the Lirillart
Company and 18 per cent to the Rey