El Paso herald. (El Paso, Tex.) 1901-1931, 1912-02-24
MUST REPORT
. Dissolution
Of TRUST
American Tobacco Company
Is Divided Into Four Dis
tinct Concerns.
FINAL DATE FOR THE
DISSOLUTION NEAR

New York, n Y. Feb 24.-The at
torneys for the American Tobacco
company will be obliged to appear be-
fore judges Ward. Lacombe. Coke and
NOyes in the United States district
court in New York Wednesday morn
ing when the time limit allowed for
the carrying out OF the plan 20 dis
baCcO trust viii have expired and give
a detailed account Of the process OF
disentegratiOn. The dissolution began,
by order OF the circuit court, last NO
vember. after the United States su-
preme court had turned the govern
ments suit TO dissolve the tobacco trust
back 10 the lower court with instruc-
tiOns to ascertain some way OF reOF-
ganizing the American Tobacco com
pany and its subsidiaries that would
conform with the law.
4 plan OF reorganization was SUB
mitted by the attorneys OF the tobsc-
co company and after several amend
ments were made BY attorney general
Wickersham, 1t was accepted despite
the violent opposition OF the inds-
pendent tobacco dealers
Divided Into Four Parts.
AS a result Of this plan OF disin-
tegratiOn the American Tobacco COM
pany has been divided into four sepa-
rate and distinct concerns The r J.
Reynolds company, the American To-
bacco company, the l. Lorillard To-
bacco company newly organized) and
the Liggett & Meyers Tobacco com
EduL lleHeN CEEanlAeQ-f Eacn mas
been completely equipped for the con-
Quoting OF every branch OF the tobacco
business according to the trusts at
tOrneys. all four are entirely independ-
ent Of each other. The p J. Reynolds
company will continue to carry on e
large general business but II viii not
include all the branches
The American Snuff company has
been divided into three companies. two
Of them newly organized-the George
". Helne company. the Weyman &
Bruton company snd the American
Snuff company. new corporation.
the Johnson Tin Foil and Metal com
pany, has been organized and has taken
over part Of the business OF the Con-
ley Foil company Mac Andrews &
Forbes. known as the LicOrics trust.
( have distributed a. share OF their busi-
/ ness to a new concern created for the
purpose the J. s Young company. The
American Cigar company has been dis
integrated as follows 1t has termf-
mated its Interest in the American Sto-
gle company. which has been dissolved.
and IL has sold 10 the American TObac-
CO company for cash all its interest in
the Porto Rican American Tobacco
company, and the American Tobacco
acquired together with its own stock
in the Porto Rican American Tobacco
company, TO Its common stock hold
ers- The result OF the disintegratfOn
IS that the Porto Rican American com
I panT has been completely divorced
from the control Of the American CT
gar company, neither OF which now
has any interest in it.
Fourteen Emerge from Combine.
The above named concerns together
with the United Cigar Stores com
pany and the British American TObac-
co company comprise the IA individual
concerns that have emerged from the
process or dissolution which the com
pine known as the tobacco trust has
undergone since last November All
OF these corporations with the excep-
tons OF the new ones have been con
hu- ~
pany, but IN the future the stock will
be held by the common stOckholders
Of that corporation.
At the time that the plan OF disso-
luton was accepted the circuit Judge
expressed the opinion that il would
not only serve to break the combine
DuI would also serve 10 create out OF
the elements at that time composing
the trust new conditions that would
De honestly IN harmony with the law
and without unnecessary injury to the
PUBIC or the rights OF private pro-
The injunctive provisions that were
introduced into the disintegratfon plan
oy attorney general Wickersham for
bid the defendants from conrf7rfns
the Illegal combination and from en-
terlng into or forming any Ike com
binatton In restraint OF trade The
lnJunctions also forbid the IA com
panies from having officers or dfrec-
Jors IN common, and prohibit the pur-
Cnaslng OF business or plants, one OF
lclned for three years from fucreasfr.s
their propOrtiOnate holdings but -
ms provision the court has added the
following clause:
provided. however. that any OF the
sag DEFENDANTS may Notwithstanding
ms prohibition. acquire from any
oTher or others OF the said defeudanfs
or In case OF death from their esfa+s
any OF the stock held by such ofhee
defendant OF defendants in any Of IRE
said corporations"
May Not Increase HOldinEs
N TINS way the % men now in con-
SIOi VINO were made individual de
tenoants In the governments dissoIr-
their aggregate holdings Within -
sline speclrled, but II would perr,ff .
rev OF them or even one TO acGrfrS
the entire holdings OF the %
IN me meantime the independa7e
tJoacco interests. whose appeal arafrsf
the acceptance OF the Arer5csS ~
os-sto company plan OF dissolut1on v-s4
1eJecleu nave made a dfract move -
80 - q Iefl5M or the terms OF the dis
Ion through counsel the fn5e
Laft to have the deDa-f19sr,+ y -, y AZ 80 ). n
LlSe JON In and obtain tie dou7f,sr~.
~ Ihe pending bill OF rayfev- 49,
N n tIe southern district OF New w.
~ ne CORRECTION Of the errors OF fsvS
@+gSt eng on the face OF the record -
me chief point OF the prO4sst ~ - .t,.
ll.uep PENDENT dealers is made ~ bsL4a
~ me retail dealers and r1afrts5-.-
mat lne United Cigar Stores ~0r9Ds-,-t
n lett Win the same power 10 thrO+
- 1lS reJalI business that Il had -
Iore the dissolution and fbat +I -.eLo pc
FaH+ STOCK is Stiu controlled - -
same interests which held A. +l,-s 80
me old American Tobacco cor,ns,', : !.
a holding interest. any as