New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-28
TO HELP TOBACCO TRUST
Committees for Security Holders
10 Aid Reorganization.
ARE MADE UP OF BANKERS
Saw They Wish to Prevent the
Possibility of a Receivership
or an Injunction

-~b~aa committees, reprcsen'lHb '
,.rss,s respectively. OF the hoiders ~
4 ,sr cent and the ! per cent oonu'io'O 10
- ,ba c-eferred shareholders OF NV
..,.,,, Tobacco Company. have ueo"
,or-,oA with the object or cooper 60
y. .-,a,aaer1ert IN framing a plan
:, denomination - the corporation WIZ"
.hou meet the requirements OF me
..o-,o Court ~ tho United states VIM"
=, ,,s oniuion handed down on MAY - o'
6ersd the 5'ssolving Of the combination anu
.,ba rec~eating out OF the elements TOW
oor,noe,nr n OF a new condition "hones'y
q harmony with and not repuSnant 10 'he
10 The mandate Of the court was
handed down on Juno %. and the company
bae six months from that date I'm which 20
nrerare its reorganization plan. ana an
s55t,iora1 sixty DAYS n IN the judgment
- 40 1-rite5 states Circuit Court in this
d,s,rict 20 which the plan Is TO he sub
-o,tted the extension shall be deemed nee
essary.
re- oon,r1it+ees ere made no Of promi-
rent bankers. most Of whom have had n"
direct Affiliations with the American To-
bacco Company. That representing we
holders Of the s per cent bonds ia headed
by Alexander J. ITenphill, president OF the
Guaranty Trust Company, who has served
ss chairman Of many protective commit
tsAs. the other members being T. De witt
'Ciivler. president Of the Commercial Trust
Comoany. Of Philadelphia. and a director
n the PENNSYLVANIA Railroad Company and
of many financial institutions in Philadei-
mia and this city; J. Horace Harding. OF
Charles n, Barney & Co. Rowland Davis
Of Blake Brothers & CO.. and Albert II.
wicein. president Of the Chase National
park. with eX-Justice Morgan J. O'Brien
a. counsel
The second committee which will look
after the interests Of the { per cent bond
holders. is composed OF Charles II. Sa.bin.
,ico-presIdent of the Guaranty Trust Com
rarv. chairman, and Philip Lehman, Of
lehman Brothers. J. r. McAllister, presi-
dent Of the Franklin National Bank, Phila-
Aelphia. samuel McRoberts. vice-president
o. lie National City Bank. and Samuel
Sloan. vice-president Of the Farmers Loan
ard Trust Company. Joseph II. Choate
vii act as counsel. for this committee.
The chairman Of the preferred stock
holders committee is James y. Wallace,
president 81 the Central Trust Company,
WHO like M Hemphill. has had wide eX-
perfeucs as head Of protective committees
and organization committees. and his
associates are Frederick Strauss. of J. x
u. SeGsmau & CO.; Charles y. Norton,
v.re-rresideut Of the First National Bank:
Harm Bronner, Of Hallgarten & Co. and
Ernest lselin, Of 4. Iselin & CO. Adrian H..
Varkiu will be counsel for this committee.
The task Of readjustment Of the Tobacco
combination is one Of great difficulty. The
Standard oil management, which also Is
working out a reorganization plan, in ac-
cordauCe with the Supreme Courts man
GATE has 20 deal with a situation involv-
ing ID corporation having only ole class OF
stock and no bonds and controlling thirty
I'VE subsidiaries. the stocks Of which Will
PROBABLY be- exchanged for stock Of the
parent company. The American Tobacco
Company has both common and preferred
stock and also two classes Of bonds, and
~, only the company itself but also its
chief subsidiaries must be dissolved.
= n he cooperation Of the three committees
reureSentDE in the aggregate as strong
and experienced "a protective body as has
ever been selected 10 care for the interests
Of holders of securities Of an American
corporation. is expected 70 be or great as
sstsuce 20 the counsel and directors Of
tho Tobacco company I'm graphing with
this task and ir bringing 70 TO a salts
factory and speedy conclusion.
The position of the committees IS stated
as follows by one OF the most prominent
members Of one Of them.
We dc not vet know what the plan Of
REORGANIZATION viii be. but we are prepared.
- participate in the hearings which the
company viii ask Tor before the United
States Circuit Court, and lend whatever
assistance We can toward working cut the
problem
The Supreme Court has very wisely az
forded an opportunity 10 the company ami
IT'S security holders OF working out their
own salvation. 10 use the language Of tie
decision. with as little injury as possible
% the interests Of the general public and
a proper regard for the vast interest Of
private property which may have become
Invested in many persons The COMPANY
is bending every energy 20 bring about
this result. and the various committees
VIII cooperate iu such an end
70 no readjustment is approved within
che limit ser by the court. the Department
- Justice would be able 10 throw the com
Ua-v into rhceiveTship or enJoln its busl-
yes Either contingency would be dlsds-
-r0us o. the rank and fle OF security hold
err This is what We shall Use every effort
20 prevent The alternative OF an injunc-
for stopping an business Of the company
would. OF course. be calan1itous.