The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-10-30
REASONS GIVEN
FOR SORBRUGSALE
President of Company Reveals
Remarkable Facts to Holders
of Preferred Stock.
WAS IN DANGER OF FAILURE
Competition, Following Dismem-
berment OF American Tobacco
Co. Threatened Shipwreck.

In a letter marked CONFIDENTIAL"
and addressed to the holders Of pre-
ferred stock of the Surbl ug Corpora
ton. J. w. Surbrug. president o: the
company. reveals surprising bits Of in
formation in connection with the re-
cent taking over of the company 9
holdings by the Tobacco Products Cor
poration. lately Incorporated in this
state with capital OF. $50.000.000.
that Ibs ssa from on tn, ,b
pany's plants. one Of which Is located
IN Richmond. was made necessary by
the inability Of the company to meet
the fierce competition which followed
Tobacco Company by the United States
supreme Court
Business Was Declining.
The letter. which bears the date of
September IL, 1912. and appears to
have been sent out before the sale
Q; the Surbrug plants to the Tobacco
Products Corporation was announced.
reads in part as follows:
Owing to the disintegration Of the
American Tobacco Company into four
distinct parts. the competition that
has ensued is Of such a nature as to
make it impossible for the Surbrug
Company to continue to do business.
Each day their business is declining
with such remarkable rapidity that
something has got to be done at once
up until the first day, Of December.
1911. the company was making money
and was very successful, but since
that time We have lost over $4,000.
and the probabilities are that our loss
Will be greater If we continue under
the circumstances.
Il have endeavored in every way
to find a purchaser for the company
and. after a lot OF trouble. found
concern that is willing to buy It. The
nf
say. i do not know. The only 'nfor-
nation / can convey is that the BUY
er is one Of the officers Of the Astor
Trust Company. They have made an
We to liQuidate the liabilities, which
will mean that the preferred stock
holders will get their money back
they will get 100 cents on the dollar.
Dividend Lapsed.
Did you notice that the last d'vi-
dend lapsed? This wac on account
Of our lawyers prohibiting US to pay
same, as the dividen& was not earn
ed. II this deal goes through u mas
got to go through at once. and we
must have your stock as quickly as
possible. therefore We should kindly
request that you should nave your
stock signed in blank on the back ex-
actly as it is on the face and WIZ,
messed and sent in by registered mali
to either Mr.. Jones or myself. ana
We will. within forty EIGHT hours SEND
you a check for 1t, as soon as can
get this stock to the Astor trust
Company, to get the money on same.
The Surbrug Company has been
my idol for years. have work ca
and struggled to build IT up 10 lts
present proportion, and the only rea-
SON why it is advisable to sell at the
present time is on account OF the ire
mendous competition that we race
the board Of directors have stuuteo 'ns
matter very carefully-thought it all
over and come to the conclusion that
the only way to do is to sell Deiore
a failure comes because II 1aiiule
should come the preferred stock hold
ers would get little or nothing AS
1t stands to-day. do not own 6oI-
lars worth of preferred stock-ail OF
nv holdings are common. for which
will receive little or nothing.
Il trust you will kindly help your our.
az nromntIy as possible-properly
signed and witnessed-your stock TO
this Office"