Newspaper Page Text
GENERAL
NEWS
VOLUME XVI, No. 288.
pacco TRUST TO BE SPLIT
INTO FOUR SEPARATE PARTS
Separate and Unaliied Con
cerns Proposed For Approval
of United States Court.
DESINTEGRATION THROUGH
A $115,000,000 SALE
Ruriness Divided Between New
American Co., Liggett & My
ers, P. Loriilard Co. and R.
J. Reynolds Co.
New York.—The plan for the dis
solution cf the American Tobacco
Co., in compliance with the decision
of' the United States supreme court
decreeing it an illegal combination,
was officially made public Saturday
■light, it will be subrnited to the
Tnited States circuit court of the
southern di.-trict of New York for ap
proval .Mend::;..
It was decided to make tile plan
public pren'.uturely owing to the pub
lication Saturday of a summary pur
porting to be official, but which ac
cording to Delaney Nichol, counsel
tor the American Tobacco Co., was
incorrect.
The official plan provides for di
vision of the American Tobacco Co.,
into lour companies, no one of which,
it is stated, will have a controlling
influence in the tobacco business. The
four ton-parties are the present Amer
ican Tobacco Co., which will con
tinue Its corporate existence, the
Liggett and Meyers Tobacco C 0.,,
which is to be organized; Ihe 1\ Lor
rilard Co., also to lie organized, and
the R. Reynolds Tobacco Co., an
existing corporation. Disintegration
is to bs brought aboui by selling $115,-
000,000 of the property of the Amer
ican Tobacco Co., consisting of fac
tories, brands, businesses and capital
stock of these manufacturing com
panies new owned and controlled by
It to the Liggett and Myers Tobacco
Co., and the P. Lorrillard Co., for
cash and securities of the two Vende
companies and by distributing to
common stockholders of the American
Tobacco Co., two thirds of the stock
of the R. j. Reynolds Tobacco Co.,
now owned by the American Tobacco
Co*
<# <i plan also provides for distriliu
tiom in the form of dividends of the
securities of the various subsidiary
companies controlled by the Amer
ican Tobacco Co., manufacturing lic
orice, snuff, tin foil, etc., to the
\merican Tobacco Co.'s common
stockholders and the division of some
of these subsidiary companies, which
were held to be illegal combinations,
into separate companies, having no
interest in each other.
It provides further for radical
changes in the voting power of the
stock that the 2!> individual defend
ants, who formerly controlled the
-.merican Tobacco Co., through the
ownership of 56 per cent of the com
mon stock, will surrender this con
trol.
The principal financial fiature of
the plan is an assessment on the
$40,260,400 common stock of the
American Tobacco Co., amounting to
$36,651,925, or about 91 per cent,
which will be used toward the pro
posed retirement and cancellation of
the companies existing bonds. For
this assessment, however, the com
mon stockholders will receive com
mon stock ot the Liggett and Myers
and P. Loriilard Companies.
It is set forth that the 80 per cent
of the production of cigarettes in the
United States, now controlled by the
American Tobacco Co., will bo di
vided practically 37 per cent to the
American Tobacco Co., 28 per cent to
Liggett and Mvers Co., and 15 per
Cent to P. Loriilard Co. The 77 per
cent of smoking tobacco controlled
will be divided practically 33 to the
American Tobacco Co., 20 to (he Li;
gett and Myers Co., and 22 per cent
io the P. Loriilard Co., and two to
the R. ,T. Reynolds Tobacco Co.
The 80 per cent of plug tobacco wifi
b° divided practically 25 per cent to
■ie American Tobacco Co., 27 per
ent to Liggett and Myers, 3 per cent
to the Loriilard Co., and 18 per cent
to the Reynolds Co. The 19 per cent,
of fine cuts tobacco will lie divided
about 10 per cent to the American
Tobacco Co., 41 per cent to the Lig
gett and Myers Co., and 28 per cent
to Loriilard Co. The 13 per cent 4?
cigar manufacturers controlled will
p divided 6 per cent to the American
f igar Co.. 6 per cent to the Loriilard
Co., and 1 per cent to the American
Stogie Co. The 93 per cent control
"f "littlecciga r” will be divided.
The 93 per cent control of little clgtirs,
will be divided about 15 to the American
Tobacco Co.. 44 to Liggltt and Myers and
34 to the Loriilard Co. The ninety per
cent of the snuff business will be di
vided practically 32 per cent to the pres
ent American Snuff Co., 30 per cent to
•ho Of. W. liolme Co., and 28 per cent
t ' XV-wi: and Bruton Co., the latter
■wo companies to be organized.
Kyn-h preferred stockholder of the Am
prican Toha'to Co., will be offered the
right to exchange one third of his hold-
Ingsf I' ,r Into sewn per cent preferred
took of the Liggett apd Myers anti
Loriilard companies.
The fir “ft '-f these changes when made
v ill he i pav <-T ’ h** entire bonded debt
I ' ;.n 'i l . » Co am unting
t » *I"L- t: - <!;<s to reduce its assets
.-•reM’.!'■: gly. It wil< be left with
?'< 2,4 of the preferred stork and
?40,620,000 of common stock as its only
outstanding security The preferred
THE AUGUSTA SUNDAY HERALD
SEEKS HEARTBALM FROM
EX-GOVERNOR’S SON
Alisa Evalyn Cole, a handsome-young
woman of eighteen has instituted a
suit for $50,000 damages from Frank S.
K. Brown, son of ex-Governor Frank
Brown, on alleged breach of promise.
Mi.ss Cob' is still madly in love with
Brown and said: “I would marry him
if they tied his head up and his arms
behind him. and he could just barely
say ‘yes’ Miss Cole met Brown sev
eral months ago and according to h»-r
story they became engaged. Then
as Miss Cole explains, “influences got
to work” ami young Brown drifted
from her. Young Mr. Brown was di
vorced by his wife and ho gave her
$25,000 in li- u of alimony.
stock will lie given full voting rights and
the control of the American Tobacco
Co. will thus pass from the 29 individual
defendants to the holders of sy2,7l9,d>v*
preferred and common stock.
Both the pfd stock of Liggett and
Myers and Loriilard companies will also
have, full voting rights and the 29 de
fendants will control neither of these
companies. The same will he true of the
R. J. Reynolds Tobacco Co. None of
the four companies will have any in
terest in our relation to the other al
though at the outset they will neces
sity have many stockholders in common
No small group of men not even the
29 individual defendants in tho aggre
gate that will own the control of any
of the principal, accessory, or subsidiary
companies, the plan states.
The total cost to the common stock
holders of putting the plan into effect,
it is set forth. Including tho increased
interest and preferred dividend charges
capitalized on a 5 per cent basis, the pay
ment of bonds at above par. the ex
penses of the disintegration Itself and
the organization of the new companies
will amount at least to $22,000,000 this
in addition to the $36,651,925 in* cash to
be used toward paying off the bonds of
the company.
HIGH BACHELOR WAS
ROBBEOJF 14,200
Jasper N. Smith of Decatur,
Was Relieved by Pickpockets
While on His Way Home.
Atlanta, Ga.— Jasper N. Smith,
owner of Bachelors’ Domain,' and a
wealthy citizen, lost forty-two hun
dred dollars Saturday as a result or
having his pockets picked.
He drew the niuney from the bank,
and boarded a street car to go to the
DeKalb County Fair at Decatur. The
robbery occurred on the car. Three
men believed to be professional pick
pockets are under surveilance and it
is believed by the police that the
money will be recovered.
GOOD SYSTEM WATERWAYS
SOLVES A BIG PROBLEM
Chicago.—The construction of a
comprehensive system of waterways
as a solution of the high cost of liv
ing problems by reducing the coet of
transportation was advocated by the
T.akes-to-thcGulf Deep Waterways’
Association which closed its sixth
annual meeting here today. A com
mittee of 100 wlil no to Washington at
the next session of congress to work
for an appropriation.
A committee of 50 will be appoint
ed from each state in the Mississippi
valley to obtain pledges from public
men to support deep waterway leg
'slattern. The association reaffirmed
the platform adopted a year ago at
St. Louis for a waterway not less
than 15 fe> t in depth.
AUGUSTA. GEORGIA, SUNDAY MORNING. OCTOBER 15. 1911.
IS BURY JUDGE
HI) IN HE
UR CEMETERY
“Good-bye I am Sorry I Kept
You Al! Waiting So Long”,
• Were His Last Words.
WANTED TO SERVE
THIRTY-FIVE YEARS
*
! Was Next to Chief Justice
Marshall and Associate Jus
tice Stephen Field in Point of
Service.
Washington. D. C.—“dot’d by, 1 am
sorry 1 kept you all wailing so long,'
With these words, Associate Justice
.John M. Harlan, of th siijm me rouri
of th. United States, often acclaimed
the greatest constitutional authority of
the day, once a conspicuous figure in
national and Kentucky Republican
polities and long a leader in Presby
terian councils, passed away early to
day. He had been ill less than ;i
week.
The famous jurist will be buried in
the National cemetery at Arlington or
at Rock Creek cemetery here follow
ing a service next Tuesday at the New
York avenue Presbyterian church if
which he was active member. The
supreme court will tako formal action
i on his death Monday and adjourn im
mediately as a mark of respect.
Justice Marion’s great ambition was
to serve until next June wlan he would
have exceeded the services of any
other man who sat on that bench. As
it was, his service, was longer than that
of ary justice except Justice Marshall
and Associate Jut ice Stephen G.
Fields; Fields was the longest service,
34 years, six months and ten days;
Marshall’s 34 years, five months and
live days; Harlan’s 33 years, ten
months and 25 days.
Justice Story was on the bench 33
years, 9 months, 22 days. These ar*
the only justices who have served their
country on the bench for more than a
generation.
Justice Harlan left a widow and five
children. Four of the children were
at his bedside. They Included Inter
state Commerce Commissioner Jas. S.
Harlan, John Maynard Harlan of Chi
cago and the Misses Laura and Ruth
Harlan, who live at the Harlan resi
dence here. The third son, Rev.
Richard D. Harlan, formerly presi
dent of Lake Forest University is tour
ing Europe.
The career of Justice Harlan was
unique In the development of an ordi
nary country politician into one of the
greatest legal intellects of the day.
Harlan was often acclaimed the
grtatest constitutional authority of his
day. It was the lato Justice Brewer
who said of him: “I believe he re
tires at night with one hand on tht
Constitution and the other on the Bi
ble, safe and happy In a perfect faith
in justice and righteousness.”
Justice Harlan lias the signal dis
tinctioa of going down to posterity as
a. justice whose dissenting opinions
were more widely known than those in
which he joined with the majority of
the court..
With the death of Justice Harlan
the opportunity is given President
Taft to select during his single term
of office five members of the supreme
court bench, or a majority. Such a
duty has fallen to no President since
Washington formed the court in 1790.
In addition President Taft has named
the chief justice of the tribunal.
Turks A Hack
Italy's Posts
TRIPOLI.—Before dawn this morn
ing, two hundred Turkish infantrymen
attacked the entrenched advance posts
of the Italians west of Boumeliane.
There was lively rifle fire supported
by artillery. After an hour’s fighting
the Italian Infantry, backed by field
guns, landed from the fleet, forced
the Turks to beat a retreat, leaving
one dead. Four Italian soldiers were
wounded.
MUSICAL CONCERT AT
THE HAINES INSTITUTE
The first public exercises of the new
term of the Haines Institute- will be a
musical concert, Friday night, Octo
ber 20th. E. F. DeOraffenriet, of N’e-.w
Haven, Conn., an excellent soprano
singer, will render several numbers.
The musical department of the- school,
in charge' of Prof l.lllard, will assist
cjn the program.
DEMONSTRATION IN MEXICO.
Mexico City.—A demonstration or
ganized by Nueva Era, the Madero
organ of the capital as a protest
against the influence of the Catholic
church In politics anrl as an offset to
the Catholic manifestation two night-;
ago filled the streets with a ehouting
banner carrying crowd of e-ltizens
of all classes Saturday night.
TURKISH WAR MINISTER
r > ■ \Jv
- -
Malmied Shevket Pasha, the Turk
ish war minister who in a recent state
ment confessed that Turkey had no
war filans prepared for the campaign
against Italy. “This war,’’ said the
minister, "burst upon us unexpecting
and unprepared. In the Ottoman Gen
eral Staff we have war plans prepared
for campaigns against every one of our
neighbors, and they are renewed and
altered if required every year, but for
a campaign with Italy, not the slight
est outline of a plan existed.
WRIGHT BROS.
HAVE MED
HIE “EUR"
Solved Problem of Sustained
Flight With Minimum Power.
To Make Flight Monday.
IS A BIPLANE AND
WEIGHS 145 POUNDS
Not Enough Wind to Fly it Sat
urday But Attempt Will Be
Made Tomorrow to See What
It Can Do.
Kitty Hawk, N. C.—With tile as
sembling Saturday of the Wright
brothers' latest development in the
science of aviation, spectators were
given their first view of the device
with which the famous aeroplane in
ventors hope to solve the problem of
sustained flight with minimum pow
er. The new glider is much lighter
than any machine in use by the
Wrights, weighing only about 145
pounds.
There was npt enough wind Satur
day to fly the ne.w aeroplane from
Kill Devil Hill and the first flight is
expected to take place next Mon
day.
When the parts of the machine were
assembled today, its appearance bore
out tlie statement of Orville Wright,
that it was intended merely as a
glider. Jt is a. bi-plane, the planes
measuring 32 foot across from tip to
tip and 5Vs feet in breadth. From
upper to lower plane there is a space
of 514 f'-et. As 111 the case of tile
first Wright, machine, the new glider
is supported ori skids.
The control levers are arranged tho
same, as the power driven machines.
There is a double rear vertical rudder
ami it horizontal tail-plane exactly
like the (tower aeroplane, except that
the frame is shorter and lighter con
struction.
One noticeable change in the gilder
b Ihe lifting curve of the main plane.
This curve, which runs from (the en
bring edge u, the rear of tie- plane,
is decidedly flutter than the old style.
It presents practically no radical de
parture from the accepted type of
Wright biplane.
LOUISVILLE, KENTUCKY MOB
BEATS NEGRO VERY BADLY
Assaulted Eour-year-old Girl and When He Released Her At
tacked Fourteen-year-old Girl. Police Protect Him From
Mob.
Louisville, Ky, —A negro was ho ba<il.v beaten by ;> mob here tonight that,
hi; recovery lx doubtful. The bjaca had attacked four year old Ethel Cook,
and when she bad reloa** e] herself he grabbed Hazel Hughes, aged 14. Her
'•ries for help brought her mother, Mr*. Maud Hughes, who, too, w. : heat
end H ' n'gro. Infuriated by the rr Jen of the two glrlw and the woman,
m mob w;ts restrained from killing the black only by the police.
M«roher> of the mob have made statements to the police and freely offer
ime of their name*.
DODGERS IKES
PROGRESS M
GREAT FLIGHT
Flew From Kansas City tc Vi
nita, Okla. in Six and Half
Hours.
COVERED 189 MILES
IN THAT SHORT TIME
Ten Thousand People Gave
Him Welcome. Is Now 1,-
873 Miles From New York
City.
Vinita, Okla.—Twenty-five days out
of New York, bound for San H'rancis
eo, 1,873 miles on his way, "Cal”
Rodgers, the aviator, flying from coast
It) coast, landed in an open field le-re
in the gathering dusk tonight. Me
tiad flown 18!) miles, from Kansas
City, in six and one half hours.
Ten thousand people, nearly twice
the population of this little town, gave
the aviator a welcome
Rodgers flew today jn the face of
a stiff breeze. Twice he wots com
pelled to descend for gasoline, once
at Moran, Kas., and once at Russell
• 'reck, twenty-five miles north of Via
I ta.
Rodgers’ total flying time was 271
minutes. He spent one hour and 13
minutes at Moran, where he stopped
for lunch. At Parsons, Kas., he bat
tled with a storm at the height of
nearly a thousand feet. His machine,
hobbled like a feather In the wind.
Rodgers finally left his course and
passes! around the storm.
At Russell Creek he landed Tor gas
oline in the face of a thirty-mile gAle.
He will leave this eity at 7 o’clock
Sunday morning, bound Tor Musko
gee, 80 miles south, where lie expects
to land at 9 o’clock. He hopes to
reach .Fort Worth, Texas, before dark
Sunday.
SITUATION »
SERIOUS 111 CRIIIIt
Yuan Chi Kai, Former Grand
Councilor and Chief Army
and Navy Has Been Recalled.
Pekin.—The recall of Yuan Shi
Kai, formerly grand councillor and
commander in chief of the army and
navy, who was dismissed from power
and banished from the capital some
three years ago and his appointment
s« viceroy to Hu I’ch and Hunan
provinces, indicates the plight of tho
Manchu administration. Figuratively
speaking, Yuan Shi Kai is their last
and best card. He is known as a
strong man and it was he who first
organized the northern modern army.
It is believed he is the only mun
around whom the troops will rally,
but It. is underctaln whether he will
accept the appointment or hi aecopt
ing can prevent a calamity.
Huns on the government and other
Chinese hanks have resulted in heavy
l ranafers to foreign hanks. The Chi
nese government is endeavoring to
make emergency loans for military
purposes and to pay the Indemnities.
Proposals for heavy loans were sub
mitted today to hanking groups of
four nations, but tt. Is not likely these
will he accepted. The construction
of the Hu Kwang Railway, as well as
the conclusion of the currency reform
program, will ho retarded indefinite
ly. The diplomatic corps had a lon
conference today regarding a possible
attack at Wu Chang. It wa fl decided,
however, that it would Ho unfair to
interfere and therefore Sir John John
son visited the Chinese foreign hoard
and suggested only an avoidance of
shelling the foreign cessions.
Lieut. Col. Wrd. I). Beach, of »ort
Santiago, who reached here Saturday
night from Hankow, reports that, sev
eral troop irains were passed pro
ceeding on their way south, hut there
is a growing belief here that the gov
ernment will not venture an engage
ment with the rebels for weeks or
even months In the hope of finally
conciliating the masses or bribing the
leaders.
DAILY AND SUNDAY, $6,00 PER YEAR.
CROWN PRINCE OF SWEDEN
| k„,
The Crown Princess of .Sweden, Mar
garet, the daughter of the Duke and
Duchess of Connaught, and lie.- young
est hern, the Princess Ingrid. The
Crown Princess bus been paying .t
lengthy visit to her parents and was
on tile point of rnturntng to .Sweden
when the above photo was taken.
SHUT TO TIE
SEASIDE WHEN
TRIAL SUSPENDS
First Week of McNamara
Trial Ends at Los Angeles
and All Hands Hurry Away.
BELIEVED TRIAL WILL
LAST Sly MONTHS
Case Will bo Regarded Not
Only as Trial of Single Man
but Struggle in Which Or
ganized Labor Will Play
Leading Part.
Los Anydes.—A scurry for country
clubs and beaches marked today the
cud of the flpnt week of the McNamara
murder trial. When Judge I lord wll
adjourned the ease at noon until Mon
day. the big white hall of record a in
which the trial Ih being conducted wan
depopulated quickly.
James I?. McNamara on trial for the
murder of Chan. .1 Haggerty, a victim
of the IvOH A nffeles Times explosion,
was taken buck to his cell where? dur
ing tin afternoon he discussed the
situation wlll l ills brother, John J. Me
Narnura also under Indictment for
murder. The bri< f week, interrupted
by two holidays, was sufficient to
outline the tremendous struggle, now
beginning. Thom*, who at Ihe begin
ning predicted a three months trial
lengthened this to six months and that
nine months or more may have elapsed
before tin f.rials of the brothers are
completed, f eemcd the general opinion.
A month Iri which to obtain a jury
rvas held a moderate estimate.
Whether the 800 or more veniremen
remaining were sufficient to supply a
Jury was discus -od with the point Jr.
view iliaf ihe trial eventually might, he
pushed out of Los Angeles county for
lack of Jurors.
External proceedings, however, were
held of minor Importance compared
with the declaration in court from the
defense that the case would he re
gard'd not alone as the trjnl of a sin
gle man hut as a struggle In which
organized labor would play a lending
pari. That and the defense that the
'l’imes was Mown up, • not by dyna
mite but by gas seemed to comprise
the position of the defense, although
the burden on the state of showing that
Jaw. McNamara was In Los Angeles
or at. any place whore he could have
been responsible* for Haggerty’s d«atl»,
will be strongly Insisted upon.
Par hup* 800 witnesses all told, are
being held in readiness according to
estimates of counsel. With tie ex
ception of Orth- I! McManigal, a had
ing witness for the state, now In the
county Jail, none is in I.os Angelas,
so far as Is known.
Today was expected to see the fin
ish or arguments over the admissi
bility as a Juror of V. T. Nelson, who
was challenged by the defense for Mas,
hut at the close of t.hc court It was
announced thajL Attorney Jos. Heott of
Los Angeles, had a few words to sav
in bf half of the defense.
,r We will hear Mr. Scott. Monday
morning,” said Judge Bordwell cheer
fully.
GENERAL
NEWS
NIGEL DECLARES
WHIT NATION IS
■ WANTING
In Address He Says Federal
Orqanic Law is Required
Which Will Make Things
Specific.
•
SHOULD BE PLAIN
SAYS THE SECRETARY
Head Department Commerce
and Labor Makes Interesting
Speech to American Ass’n
Commercial Executives.
Louisvillo, Ky. In an address this
afternoon at the cloning session of the
Aimrican Association of Commercial
Lx<cuUvert annual convention, Charles
Nagel, secretary of commerce and la
bur declared the I lino lias come when
the nation requires a federal organic
law which shall make specific what a
man or company engaged in inter-state
commerce may do with impunity.
‘“Phis law should be too plain for
more than one construction,” said Sec
retary Nagle.
“What we want is a national organi
zation of commercial clubs. Hut only
one city- Lost on has solved this com
mercial organization proposition. When
1 gel a telegram from the Boston or
ganization I know tha t Iho city «>f
Boston lias spoken. When I hear from
other lilies I first get a wire from
the hoard of trade, then from the com
mercial club and finally one from soma
improvement association. There should
be a. better organization in all our
cities.’’
Washington, I* (\ was selected as
the next meeting place by the conven
tion and before adjournment the fol
lowing officers were elected:
President Lucius IL Wilson, De
troit.
First vie -president —M. 13. Troz* -
vant, New Orleans.
Second vice president—F. G. Morley,
Toronto.
Third vice-president James A. Bail,
Harrisburg, Pu.
Secretary-treasurer Milton Carmi
chael, Detroit.
Fiftoi n directors were elected in
eluding YV YV. McKean, Charleston.
JOHN H. WALSH
NOW GOING HOME
Former Chicago Banker Forc
ed to Leave Prison In Suit
Made by the Prisoners of that
Institution.
Kansas City, Mo.—John It. Walsh, the
former Chlratro hunker, is speeding j
homeward tordght. After spending l
year, 8 months, and 2G days in the fed- ’
ernl prison at L-cavenwortn, Kas., on a
live year sentence for misapplying the
funds of the Chicago National Bank, lie 1
was paroled today.
Accompanied by his son Richard, the ,
former capitalist this afternoon left here
for Chicago.
Owing to Richard Walsh not baling in
formed that ids father had been paroled,
i.-e former bunker was forced to leave
the Institution In a gray suit and gray i
overcoat made by prisoners and a soft j
black felt hut of such inferior material
that it was split. in several places before
Walsh reached here.
The parole came, .'ifier more than a
week of waiting for a report on the case. ;
Thursday night the prisoner almost gave I
up hope, as did Ids friends.
Late hist night, a code message came
from the attorney general saying the pu- j
role had Ison granted. According to
the regulations, Walsh was the only per- j
son the warden told of tlie parole and *
it was not until today the story leaked
out,
“Come here immediately/’ the ward
en tekgraphed Richard Walsh and he,
thinking his father was ill, rustled to
Leavenworth from Chicago today.
The prisoner wjih at dinner when bis
son arrived. The prison menu today was
pickled bee* , sausage, cabbage and
bread arid water. Walsh ate more
heartily than lie had for several days.
Walsh war given $5, a railroad ticket
to Chic; ,<» and $75 he had on deposit in
the prison office, tie refused to make
an statement at this time, hut said lie
might write one later.
BANK PRESIDENT WAS
CONVICTED OF FALSIFYING
Oklahoma City, Okla. —Abner Davis,
1 former president of the Night and Day
I {tank, of tiilH c ity, wan today found
i guilty of falsifying the records of the*
bank by a jury in the district court. t
The othe r four cases against Davis
i w< re continued.
It was charged that Davis falsifi d
the- re-cord to make it show that $40,-
000 of the hank's funds were on de
pe».dt In other bunks in Pit. Denis and
Kansas City, his defense being that
entries were made at thf. suggestion
juf a state bank examiner.