The sun., 1919-07-02
ANNOUNCE TOBACCO
COMBINATION PLAN
United Retail Stores to Absorb
United Cigar Stores by
Stock Purchase.

Official announcement was made yes
terday that the United Retail Stores
Corporation, the new Whalen-Duke or
ganization, would absorb the United CT
gar stores Company by purchasing its
outstanding capital stock. The an
nouncement was made in the form of
circular sent to stockholders Of the
United Cigar Stores Company offering
an exchange OF stock in the new corpor-
alton for stock of United Cigar Stores
on the basis OF two shares of the new
stock for share OF United Cigar Stores.
The United Retail Stores Corporation.
which was organized a couple Of weeks
ago by George ]. Whalen, James B.
Duke and representatives OF other big
tobacco interests, plans to carry out a
vast scheme for manufacturing. produc-
mig and retailing throughout the world.
The authorized capital stock O. - new
company consists OF 100000 shares OF 8
per cent. cumulative preferred stock and
100000 shares OF common stock, tho
latter being divided into two classes
namely, 100. 900 shares OF founders stock
100000 shares Of Class A common.
The group Of men who brought about
the formation OF the new organization
subscribed for $4,000 shares OF the class
A common at $50 a share, according to
the circular sent out yesterday out
OF the remainder OF the 1,l60, 900 shares
Of common stock" says the circular.
they have also bought and paid for
100000 shares of founders stock at IS
per share, and 1t is their purpose to util.
ize from time to time such a portion of
this founders stock, as this group in
their discretion may determine, to Sc
cure for the corporation the services OF
men of experience, ability AND capacity
to manage and direct its a7.t.irs and
activities as we'll as the cooperation of
those who. in their judgment. may be
practically helpful in its organization,
financing. operation and development
and also generally, as they may deem,
for the advantage of the corporation and
its stockholders"
The offer to stockholders OF the United
Cigar Stores Company to exchange their
holdings for class A common stock of
the United Retail Stores Corporation is
contained in the following paragraph
from the circular:
1T offers to acquire all OF the issued
shares of the par value OF 500 each OF
the common stock Of the United Cigar
Stores Company OF America from the
owners thereof as shown by the records
Of that company and TO pay therefor by
issuing and delivering two shares of
Glass a common stock OF this company,
full paid and worcestershire, for each
share of the common stock OF United
Cigar stores Company OF America. all
upon the following terms Arrangements
have been made with the Guaranty
Trust Company OF New York whereby
holders of record OF such common stock
OF United Cigar Stores Company OF
America may at any time on or after
July Z, 1919. accept this proposition by
surrendering and delivering to the said
trust company their certificates Of such
common stock. Upon receiving said GER
tiflcates the trust company will deliver
in payment therefor temporary certif-
Gates of the Glass A common stock OF
this company at the rate OF two shares
of said Class A common stock for each
share OF the common stock of United
| Cigar Stores of America"