B.A.T. BONUS.
Evidently there was an intelligent anticipation of the bonus scheme of the British American Tobacco Company, which has formed one of the interesting developments of the past week, for the announcement of the details on Monday was promptly followed by a fairly sharp reaction in the shares. Incidentally, the reaction also affords an example of the manner in which shareholders of prosperous industrial concerns have become almost blasewith regard to bonus announcements, for, as a matter of fact, the plan is a good one and constitutes a very substantial bonus. Briefly stated, the company forms a subsidiary to be known as The Tobacco Securities Trust, which will have a capital of £5,000,000 divided as to £4,000,000 in Ordinary Shares of '11 each and as to the balance in Deferred Shares of 5s. each. Holders of B.A.T.. shares are to receive one Ordinary Share of £1 each and one Deferred Share of 5s. each in the new subsidiary for every eight Ordinary Shares of the British American Tobacco Company now held. The Ordinary Shares in the new subsidiary are to be entitled to a non-cumulative dividend of 15 per cent., less tax, and to 50 per cent. of any profits remaining available for distribution, the other 50 per cent. going to the Deferred shareholders.
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