The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-15
Parent Company Will
Be Split into Three
Corporations.
"MELON" CUT ING
P K 0 V | d E u FOR
Surplus Of S7o,ooo,ooo Which
May Be Distributed as Divi-
dends Among Common
Stockholders Of American
Tobacco Company-Dis-
indignation Scheme.
lspcctal 10 The Times-Dispatch.

lSpccial to The Times -DispstchJ
New York October ii.-OficiaI an
nouncsment was made from tho head
quarters Of the Tobacco Trust that
It's plan for dissolution and reorgau-
ization under the decree of the 81.
preme Court would be submitted Mon
day morning TO the United States Cir
cult Court for approval This does
not necessarily mean that the plan
will be approved by tho Circuit Court
Even II 1t Is approved the govern
ment, through the Department Of Jus
tice. has the right TO appeal
Then, again, the 100000 independent
tobacco dealers In the United States
have interviewed by petition to see to
II that the dissolution proposed is &C
tual and that there is nothing Turk
ing in the plan that would give the
same men and Interests continued con
troll of the tobacco business under an
other suise
Louis p. Brande!E, of Boston, one
Of the most successful antitrust Law
Sers in the United States. has charge
of the case for the Independents
The principal feature in the plan is
the issuance Of new securities by sub
salaries and melon" cutting for
common stockholders.
The plan provides for the splitting
~ 'iI' american tOpGCCO company
into three corporetions-one to be
American Tobacco Company, a new
corporation to be formed. to
be known as the Jiggett Myers
Tobacco Company, and third. the p.
Lorillard Company, reorganized
The American Tooscco Company
transfers all factories brands. etc. 10
the Lorillard and Lggett & Myers
companies. under the plan of disin
tegrstion. and these two companies
will issue total of sl15,ooo,ooo of
follows:
LlgGett & Myers. s15.soes24 per
cent. bonds: sl5.s4sr7+o. per cent,
bonds; sl5,eso.ll6,' per cent pre-
ferred stock. and $2l,eio,52s, common
The p Lor!llard Company. slo,s34,-
7ol. I per cent bonds; s1o,327.3lo. s
per cent. bonds slo,5ts,5s5. per cent
preferred stock. and sl4.74l,404, com
mon stock.
Disposition of Securities
American Tobacco securities will be
retired or exchanged on the follow
ing basis:
American Tobacco ,5s.s4s,ooo per
cent bonds-one-hsf to be retired for
cash. at l2o; other half to be ex-
changed for new per cent. bonds in
LII ii'Ei " d!lI CTS, VT
par.
American Tobacco si7es7.ooo is
one-half to be retired for cash at 90
to % -, and the other half for new
per cent. bonds iii P. Lorillard and
Liggett & Myers Company at par
American Tobacco s7s.6Ss,l00 sever
per cent preferred stock-one- third tc
be exchanged for new { per cent
preferred stock in Liggett and Myers
and p Lorillard and Company, the
balance 10 be retained by American
Tobacco Company and to have full vot-
Ing power with common stock.
American Tobacco sio.2i2,40 com
mon Will receive, by way of dividends
securities now owned by II or to be
bought from the American Cigar Com.
pany or the p Lorillard Company. the
book value of which is placed at $685.
0li.s65. and additional securities and
cash. the value OF which is not given
Also common stockholders will be al.
lowed to purchase common stock of the
two companies at par for cash pro-
portionately to their holdings OF the
common OF the American Tobacco Com
pany.
The Amsterdam Supply Company I'M
der the plan of reorganization is 10
be dissolved and distribute its assets
among It's holders
Split In Two Companies
The American Snuff Company is to
be split In two companies. one to he
known as the George W. Helme Com
pany and the other the Bruton and
Condor Company.
Two alternative plans are eubhlitte ed
for the dissolution of the American
Stogie Company, one calling for dis
indignation of that company. and II
this cannot be accomplished the Amer.
lean Stogie Company is to be divorced
from the American Tobacco Company
and the Lorillard and Liggett and
Myers Company.
In it's petition the American Tobac.
co Company says that the results OF
the adoption and execution of this
plan OF disintegration and readjus TIM ent
would mean that the American Toba Gee
Company would have no controlling in
terest In any foreign country, and IA
would have no interest or alliance
with either the T. Lorillarc Compa nv
the Liggett and Myers Company or the
II. J. Reynolds Tobacco Company.
After explaining that the America
Tobacco Company is a manufacturer ot
various kinds OF tobacco. the plan
states IN detail as follows:
a melon" Cutting
INC american Tobacco Company has
a surplus of about $4,000, 600 which
surplus is distributable as dividends
among its common stockholders.
1t is proposed that the American To-
bacco Company distribute among itr
common stockholders. BY way OF div.
idends, s35,ol1,365 of subsidiary stocks
Also that the American Tobacco Com.
pany distribute among It's common
stockholders as dividend the follow
ing securities:
American Snuff Company common
stock. George W. Helme Company com.
mon stock. Bruton & Condor Company
stock, Johnston Tin Foil and Metal Com