The sun., 1919-11-01
PLAN MONTGOMERY
WARD ACQUISITION
Retail Stores Take Over Large
Part of StOck-Will ReOr-
ganizc Company.
FORM HOLDING CONCERN
Nvhelnn Interests to Get $780,.
900 Shares Of New Cor
poration's Stock.

George J. Whelan, head OF the United
Retail Stores Corporation, announced
yesterday that arrangements had been
mode for reorgnnixing the big Chicago
mail order nrm of Montgomery Ward
& Co.. Inc under the new Illinois cor
poratlon law and acquisition Of a very
large proportion VI the stock of the new
company by the United Retail Stores
Corporation In connection with that
reorganization plan 1000 900 shares of
no par value stock of the new Mont
gomery Ward corporation are to be is
sued and sold for cash, thus providing
abundant working capital.
I OF the total of 100000 shares $780,
900 will be taken over by Mr.. whelan
and his associs t"s on behalf of the
United Retail Stores Corporation. The
remaining 1900 shares will be re-
served for sale to the officers, directors
and employees active In the manage
ment and direction of Montgomery Ward
& Co.
Another new company is to be organ
ICED as a holding company for the new
Montgomery Ward concern and it will
be offered In due time to United Retail
at
which, II was said yesterday, will give
them some valuable rights. Robert j.
Thorne and his associates will continue
as directors and managers of Mont
gomery Ward & Co.
The FIRST company to engage on
large scale in mail order business was
Montgomery Ward & Co. 1t was incor-
porated In New York on January ~,
1918. as a successor to Montgomery
Ward & Co., an Illinois corporation, es-
tablished in Chicago in 1872 and incor-
porated In 1888. The company, 1t was
learned yesterday. has about 100000
customers, and its business extends into
every State In the Union. and into Can
ada and other foreign countries.
Has Mammoth Warehouse.
Large holdings Of real estate and an
enormous Chicago warehouse are the
most important OF Montgomery Ward
d Co.'S properties. That warehouse and
its site have been appraised at $685.
900. 1.-THE building contains about sixty
i've ao-es of floor space. A branch
house established in Kansas City in 1906
Is said to be the largest building for
mercantile purposes west OF the Missis-
sippi River. Montgomery Ward & Co.
has branch houses located at Portland,
Ore, and Fort Worth. The company
owns and operates numerous factories.
1t manufactures large number of COM
modes which 1t sells, including farm i'm
plements, vehicles, gas engines, harness,
food products, cream separators paints,
&C, carrying an Investment in factories
alone OF upwards Of $4,000 The au-
thorized capitalization of the company
includes 100000 shares of no par value,
of common stock of $4,000. 900. in cum
ulatice per cent. preferred stock Of 800
par value. All the common stock and
100000 Of the preferred are outstand-
ing. p
The United Retail stores Corporation
Is a corporation formed by the Whelan-
Duke interests several months ago UNI
der a Delaware charter. 1t has capt.
taiizatlon Of 100000 shares of s per
cent cumulative preferred of 500 par
value and 1,160, 600 shares of common of
no par value. The company took over
the United Cigar Stores Company of
America by acquiring its issued shares
OF stocks, that action being taken pur-
euant to a resolution of its directors in
June Sever-i other corporations have
been formed to become a part of the big
Duke-Whelan combination of producing.
manufacturing and distributing con-
Germs, including the United Retail Stores
Candy Company, the Tobacco Products
Export Corporation, the American To-
bacco Securities Corporation and an
other not formed and to be known as
the International Trade Mark Corpora
ton
History of Retail stores.
The United Retail Stores Candy Com
pany was formed to handle the confec-
tioncry end Of the big business. 1t was
planned for opening large candy stores
In larger cities and handling candy busi-
ness In connection with cigar and to-
bacco stores in smaller sections. It's
shares have been traded In on the New
York Curb for several weeks.
The Tobacco Products Export Corpo-
ration. another of the big family, was
organized In February of this year to
carry American products into every
corner Of the globe That company was
formed under New YorF-laws to take
over me Tobacco Products Corporations
foreign business. Tobacco Products fac
tories n. Canada, England, Cairo and
other poreign places have been taken
over and new factories are to be opened
IN China, australia and India.
The AMER mn Tobacco Securities Cor
porhtion was organized on October in
delaware with capitalization of 3,OOO,-
! OO0 shares OF no par value to acquire
inc american Tobacco Company's out
standing stock. The shares of the Amer
lean Tobacco Securities Corporation
were exchanged with stockholders of the
american Tobacco Company on the basis
VI i0ur shares of the new company for
one OF the old company