New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-03
TOBACCO AND STANDARD
OIL BREAK ON THE CURB
Former Drops Fl Points on
Passing of Dividend, Latter
l.. SIumps in Sympathy.
BLAME ORDERS TO DISSOLVE
Directors of One Company Say
in Statement Respect for
Court Precludes Earnings
Distribution.

Breaks Of more than 20 points each in the
price Of American Tobacco common and
Standard oil stock occurred yesterday in
IN. curb market. both issues, however.
closing many points above the lowest
The decline in Tobacco was due to the
passing Of the quarterly dividend, and the
drop in Standard Oil. while partly in sympa-
thy with the fall I'm Tobacco. represented
also an active movement on the part OF
small shareholders to get rid OF their stock
~ the good prices prevailing rather than
wait 10 market the fractional shares of thir-
ty-three subsidiaries which they would re-
Ceive within few months upon the car
lying into operation of the plan of disso-
Luton and rcadjustment announced on
Monday by the Standard Oil management
The present American Tobacco Company
vas formed in October. 1901. and beginning
with 1905 has paid regularly 10 per cent
dividends each year on its common STOCK
snd in addition extra dividends Of from
u to 20 per cent year, the extra disburse-
ments having aggregated lis per cent up
&c tho end Of 1910. The 90 per cent extra
rate was established last year. making the
total return to common stock holders IN
that wear 30 per cent. and al the last pre-
Ceding dividend meeting Of the current
year the directors declared The regular
quarterly PIP per cent and the usual extra
q, per cent.
When the committees TO represent the in
terests respectively of the preferred stock
holders and the 6 per cent and per cent
bond holders were named last week 1t was
r.ported that holders Of some of the Sc
curities other than common stock had sug-
gested that the management Of the COM
Tsny should refrain from making any fur
tier dividend payments on the common
stock pending the framing Of the reor-
ganization plan and its acceptance by the
nited States Circuit Court, the security
holders taking the position that common
dividends ought TO be withheld until II
could be definitely known whether or not
the assets Of the company would prove SUI
fciently large to pay in fun the two classes
Of bonds and the preferred stock issue.
The directors of the American Tobacco
Company Yesterday issued the following
statement in explanation Of their action in
psssing the dividend on the common stock:
Py the recent decision Of the Supreme
Court of the United States the Circuit
Court Of the United States for the South
rrn District of New York was directed in
substance 10 ascertain and determine some
plan or method of dissolving the combine
ton which was found to exist and Of re-
creating out OF the elements now composing
II new condition which will he honestly
IN harmony with and not repugndnt to the
law.
The directors Of the American Tobacco
Company are devoting themselves earnestly
10 the task Of working out 2 solution Of the
nc bleu which will commend itself to the
court. 10 which the whole matter is thus
committed.
In the ordinary course the, regular diyi-
dend on the common stock Of the company
would he declared al the present time, pay
able IN September.
Although the earnings of the company
would amply Justify the payment of the
usual dividend. the directors feel that at
the present time and i'm advance Of the ap-
proval IF the court Of any plan Of disin-
tegration II would he improper and per
haps lacking in respect 70 the court for
them 10 make any distribution Of earnings
10 tho common stock, and have therefore