Tobacco Documents Online

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PA~ NO~BER A~C~UNV NO~R ~ T,TL~ PAGE 2

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F-

Report

SECRETARY THE AMERtCAN TOBACCO COMPANY POST OFFICE BOX 1612 CHURCH STREET STATION NEW YORK 8, N. Y.

E:eeclcti e Of~fl e, l ~li E~14211rl ~¢1J eet. Ne tc }'ol ~¢ 17 7 T, ANN[, REPORT 1959 FO|~ rile YE~I~ E%])EI) I) EUEMllEI~ 31 CONTESTS HIGHLIGI~TS 2 PRE$IDIJNT'S LETTE]~ 3 OPERATIOXS AT A GLANCE 14 CONSOL[DATED STATE~IENTS OF ~qC0~E AND BETAINED EARNING~ 15 CONSOLIDATED BALANCE S}IEET~ 16 MOTES TO STAT~I~ENT$ 18 SUPPLE~ENTARV FINANCIAL INFOI~AT~ON 19 AUDITORS1 CI~I~TJFICATE 20 DIRF~CTOI¢,~ AND 0FPICERS 21 TEN-YEAR FINANCIAL I~VNIEW 22 YOUR COI~IPANY'S PI~NCIPAL PRODUCTS 24

HIGHLIGHTS PrF C'o~n~no~ Sh¢1~e Net income ............. Dividends paid ............ Net sales ............. Income, before taxes on income ...... Net income ............. Dividends paid (common and preferred) .... Portion of net income invested in assets used 93 the business and to provide fer debenture sinking fund requirements .......... Current assets, December 31 ....... Current I]ab[btfes, December 3I ...... Net working capital, December 33. ...... Number of stockholders, December 31: Common ............. Preferred ............. 1959 $9.23 5.00 $1,161,378,858 136,071,270 63,248~270 35,729,596 27,518,674 728,028,304 140,403,931 587,524,373 87,772 7,172 1958 $8.55 5.00 $I,105,I76,334 124,994,242 58,856,242 35,729,596 23,126,646 717,268,082 143,179,420 574,08&662 88r202 7,177

..... lhE, IDLNT> LETTER To Otlr Stockholders FEBRUARY 4, 1960 HIS l'eport covers operations of The American Tobacco Company, includ ing wholly-~)wned subsidiaries, for 1869. 'lhe ye,u" 1959 was the cigkth in succession to show ~, g'ain in net income and the fifth sn(~e~,slva .'ar in which net income reached a new high, $63,248.270 in 1959 a eornpal'ed with S58,$5(;.242 in 1958. Dollnr s~des were dlA(K,U7(),658 as compared with 81,105,176,394 in i!)58, a gain of $5(),2(") 524 U~i~ eignrette sales i~x 1959 were higher" than in i!)58. S ki I(8 (;kin ( ONIINI l{"a PALL .%[ ILL Cigal'ette~ acce~e/'~;ted thch" rate ~ff ~nln in l!)59 and ended 1he yt~ar with a very ~ub~tanthll inci'ease. The bi'and's strong position, both withill i~e kil~t~ >ize nlai]~[ and with re>]lei:[ to colrt])e.'i~ive bt'ands hi gert ~!l'a]~ was ftlr~her ilnpl'oveli lll(le!)elldenL uuu])~t5 e~tilE~/te ~h~i~ PALL -~IALL (Tigarette~ account for more titan 7{)(~ of a]] non!i[~er king~ize .q~ie~ and for well over 25~: of all nonfi]ter sales in tile United S[ntes. ~Fdll~tl'y >.ales of i!l/n[i]tei" e~tan(Lard-size ci~ai'ettes contin~led to/]÷lline, &nd LUCKY ~TRIKI~ ( igaFe~e-" ~/el'e ati'ected by t]lis trend. Howevol', the rate of decilne for LUCKY ~TRIKE volume ~us ]e~s in 1959 than it was in 1958. UniE sa!es Of i)t AL F'ILTI~R TAI~I;YTON (TiKale~tes h~creased vigol-ousiy and uonsK-tently duri~g 1!)5[). ('~rll~inln~ fine tobacco with activated char co~l] !~ltl'~lion--w[li(h h~t~ i)eel/ pl'o/(?d io 1Ta]<o i:]gar~io~ snlo[~e excu})ti[)l!- ally miId D/'.~L I"I1.TICI~ TAI:T;~ re> has impressed tbe fiItcr smoking !mblic with it.< ta~t( ~11(1 nlihhle'zs, and ila~; all'early a(:hievod 8tattlf~ ~t~ ~l major flhel" b~'and. The Compnny'~ elgarette vohme h~ both the filter and nonfilter fields increased in 195!b In August 1959. R1vrERA. a new if]tel~ nlenthoi cigaretle, was intro- duced in a ~ma]l number of se]ee~ed market~. RIVIERA i~ "air-cooled" with p ~g,'i TIIRKE

a double ring of tiny vents near the filter zip, which is of the twin or com- pound type. Further market testing of RIVIERA is taking place. Export unit sales { to-x-free) of cigarettes manufactured by the Company in the United States were lower in i959 than in 1958. However, this was more than offset by the increase in unit sales of cigarettes manufactured and sold abroad by J. Wix & Sons Limited, the Company's English subsidiary. In domestic cigars, unit sales of I~oI-TAN were approximately the same as in 1958. RoI-TAN continues as America's largest-selling 10¢ cigar. A new 5¢ size, BoI-TAN Trumps, was introduced early in 1959 in selected markets with vez\v gratifying results. The RoI-TAN Cigarillo, introduced in 1958 at 5¢, continued to show satisfactory sales progress. The I~0I-TAN Golfer ilas a strong position in the 4¢ market. Combined unit sales of your Company's clear Havana cigars again increased. These brand--among them L& CORONA, ANTONIO y C'LEOFATRA and B0CK y CA--comprise the largest-selling Bonded Clear Havana llne. Industry sales of smoking tobaccos and sales of your Company's broads of these products declined in 1959. A list of the Company's major cigarette, cigar and smoking tobacco brands appears on page 24 of this report. In their own investment interest, s~ockholders are urged to use these quality products themselves, to bring them to the attention of friends who smoke, to use them as gifts, and there by to assist in promoting them. P~GEFOUR

EARNINGS RISE AGAIN Earnings after taxes amounted to Sfi3,248,27O.--another record high as compared with $58,856,242 in 1958. Further improvement in the operating efficiency of the Company's business, in addition to higher sales, contributed to the rise in net income. Based on 6,512,522 Common shares outstanding at the year end, net income amounted to $9.23 per share as compared with $8.55 in 1958. 12*I\IDEND RECORD MAINTAINED The Company's record of continuous dividend paynlents on the Com- mon stock was extended for the 55th consecutive year. Total payments in 1959 amounted to $5.00 per share, including four regular quarterly divi- dends of $1.00 each and an extra dividend of $1.00. The total amount of dividends paid in 1959 on both Common and Pre- ferred stock was $35,729,596. The balance of 1959 earnings amounting to $27,518,674 was retained for use in the business. On January 26, 1960, a regu]ar dividend of 81.00 per Common share and an extra dividend of $1.00 per Common share were declared, making a total dividend of 82.00 per share to be paid on the Common stock on March 1, 1960, to stockholders of record February 10, 1960. STOCK SPLIT RECOMMENDED The Board of Directors has recommended to stockholders that action be taken to split the Common shares on a 2 for 1 basis. This recommendation is to he considered at the Annual Stockho]ders' Meeting on April 6, 1960. At the same time, the Board of Directors has announced its intentlon, depending on conditions at the time, to increase the regal]ar quarterly divi- dend on the Common stock payable on dune 1, 1960. The increase would be equivalent to 60 cents per present Conunon share on an annual basis, or 15 cents pet" share quarterly. This would make the regular quarterly di~d- dend (exclusive of any axtrasb on each of the split shares 57~,.'., cents per share as of June 1, 1900--equivalent to $1.i5 per share on the present shares. MODEI/NIZED RETIRE3IENT PLAN AND NF.~'~" PROFIT-SHARING PLAN FOR E'~IPLOYEES PROPOSED Recognizing that conditions bare changed since the present Retirement Plah was first adopted in 1949, your Nal:agement for several years has PA~E FI~E

been working to improve it. The modernized Retirement Plan, which is being submitted to the stockholders at the Annual iVieeting in .4.priI, incor- porates many new features, including coverage of more employee.s and im provement in past service benefits, and furthm'rnore is financially stronger by reason of tile proposal to fund the Plan by setting aside money in a trust fund for that purpose. In addition to the ~'evi~ion of the Retirement Plan, stockholders will be asked to vote at the Annual l~[eeting on the adoption of a Profit-Sharing Plan under which regular full-time employees will share in Company profits. Pt'ofit-skarlng plans have become widely adopted as an essential ele- ment of sonnd corporate practice and wholesome, effective employee rela- tions. ~Phe principle has been recognized and accepted in the United States Internal Revenue Code, and the number of publicly-owned corporations in American industry that have installed such plans l"uns into the thousands. Since profit-sharing gives employees a direct stake in the profitable opera- tions of the Company, your l~Ianagement believes the Plan proposed will encourage all participants to greater efforts on behalf of the Company and its stockholders. As certain officers and employees already partleipate in incentive corn pensation under Article XII of the Company's By-Laws, stockholders will also be asked to vote on an amendment to reduce the deferred benefit for the participants under this Article in order to avoid duplication of benefits. PACESI~

FINANCIAL POSITION STROINGER The Company's financial position continued to grow stronger in 1959. Notes Payable were reduced to $56,000,000 at the end of the year as com- pared with $66,000,000 a year earlier. Furthermore, the Company was able to eliminate its Notes Payable during the summer months when working capital demands were at a minimum. Higher interest rates that prevailed on short-tern1 borrowings during 1959 offset some of the benefits derived from the improved working capital position. Nevertheless, total interest on Notes Payable was about $1,250,000 less than in 1958. Long-term debt was $14,749,000 Iower at the end of 1959 compared with the previous year, as a result of retirement of debenttlres through op- eration of the Sinking Funds. This reduction, together ~ith the addition of $27,518,674 of retained earnings to net worth, produced a further im- provement in the ratio of funded debt to net worth. Thus, funded debt was 29~; of net worth at the end of 1959 as compared with 78% ten years ago. In the absence of unusual developments, your Management does not anticipate the need for any new financing in the foreseeable future. PARTIAL EXCISE TAX RELIEF Contributing moderately so the improvement in financial position dur- ing 1959 was a decision by the, United States Treasury Department to grant MEW HIGH FOR NET INCOME 6D 55 PAGE 5 E~r~N

partial reIief to the tobacco industry by putting into effect on June 24, 1959, a return and deferred payment system for e:<c~se taxes, as authorized by the Revenue Code of 1954. This provides for payment of e:,clse taxes on a semi-monthly basis insLead of c]aily as heretofore. Even after this partial relief, the method of paying tobacco excise taxes still imposes an unfair burden on the industry. A more equitable system would permit payment approxlmateIy every thirty days, and your Com- pany will continue to urge tMs change. Excise taxes on your Company's products during 1959 totaled $480,137,000. Federa] and other taxes on income amounted to $72,823,009 in 1959 as compared with $96,138,990 in 1958. Taxes on inconm in 1959 amounted to $11.18 per Common share as compared with net income of $9.28 per share. The Company's total tax bill for I959+ including income, excise, social security and other taxes, amounted to $614,219,000. CAPITAL EXPENDITURES Since certain majorexpendlmlms for the purchase of modern machin eryand equipment had been completed in 1958, total capital expenditures in 1959 declined to $9,121,000 compared with $10,950,000 in the previous year. Depreciation charged to cost and expense in 1959 amounted $5,215,154. Capital expenditures in 1959 were mainly for machinery and other pACE EI~, HT

equipment tc improve tile emcie~cy of bandllng and processing tobacco in our cigarette and cigar factories and for additions to and improvements in buildings. At the present time no major outlays fop plant or equipment are anticipated. LEAF TOBACCO Production of all types of leaf tobacco in the United States in 1959, estimated at 1,800 million pounds, was nearly 49~ above 1958. However, except/'or 1957 and I958, this year's crop was the smallest since 194g. The ac 'eage p a ted to flue cured and Burlev tobacco, the principal types used in making cigarettes, continues to be restricted by the Government. The flue cm'ed crop in 1959 totaled about 1,079 million pounds, slightly smaller than in 1958, ~md the average selling price for the crop on the auet on markets uas 57.74f per pound, about the same as the 1958 average price of 57.70~' per pound. Tim Gmermnent price support level for the 1959 crop was 55.5c per pound. The harvest of Burley tobacco in 1959 was about 500 million pounds, roughly 7~,4 higher tban in 1958. Although r{.eord high yield per acre was achieved, the 1959 crop was stiI] below the average for the past ten years. The quality of the 1959 Burley crop was affected somewhat by excessively hot and hmnld weather during the curing season, with the result that the average attction market price of ti0.7~ per pound through the end of the gear was 9; lower than the average during the (.omparable period in 1958. The Govermnent price support level fro" the 1959 crop was 57.2~ per pound. Approximatelj 90% of the 1959 Burleg crop had been sold on the auction markets by the end of the ),ear as compared wkh 88~$ in 1958 for the same period. The Company's constant effort to improve the quality of its tobacco products is, of course, dependent in the first instance upon the purchase of the better grades of leaf tobacco. In line with th s policy, your Company's purellases on the auction markets were concentrated on the finest grades of leaf tobacco availabb.. GOLDEN BELT M~NUFACTURING COMPANY NOW WHOLLY O~NED For many years the Company owned about 95(l of the capital stock of Golden Belt Manufacturing Company which manufactures printed labels, cartons, cloth and cloth bags. hluch of its output is used by this Company ~'the balance is sold to others, pAGENINE

Since April I9o7 we have been acqulrlng the shares owned by the minority stockholders and finally completed acquiring them in January 1959. The American Tobacco Company now owns 100% of the capiial stock of this company and, as indicated elsewhere in this report, the financial results of this company are now consoUdated with that of the parent Company. CONTINUING IMPROVEMENT IN ~IA1NUFACTUIIlNG EFFICIENCY While the productior of tobacco products of top quality must start with the best tobacco availabIe, the manufacturing methods used in producing the finM~ed product contribute importantly to quality and to the eonsmner ~eeeptance ot" our products. Since the end of Worhl War II, substantial advancement has been made in the manufacturing facilities and methods used in the handling of leaf tobacco, its preparation for use in the finished product and for assuring that the finished product measures up to the standards of quality set by tbe Company. These improvements, both in methods and in equipment, have also contributed to economy of manufacture with resultant beneficial effect upon profit margins. Your Company continues to explore the possibility cJf improving manu facturlng methods that will not only safeguard '.he standards of quality of its products but wfi] also produce greater profits from operations. ADVERTISING AND SALES PROMOTION With the lmmber of competlth'e cigarette brands continuing ts in crease, 5our Company's advertising and sales promotion programs are under constant scrutiny x~ith the object of improved efficiency and maxl mum economy. It is the policy of The American Tobacco Company to keep its brand promotion in good taste to match the good taste of its praduets. V~rtuafiy all major advertising media, including television, radio, news- papers, magazines and billboards, are utilized to inform the smoking public of the superior quality of our tobacco products. The efforts of our Sales Organization supplement, and are coordinated with, product advertising. Throughou6 the nation, members of the Sales Organization strive to secure the widest passible distribution for our brands. They reinforce the national advertising effort by placing paint of sale dis- plays in retail out]ors and by direct sampling of em~sumers. They also sup- ply service and assistance at the wholesale and retail ]ovals. PAGE TEN

SMOKING AND HEALTH Despite repeated publicizing of certain statistical studies hy anti- tobacco theorists, no reliable evidence has been produced in the experimental or pathological fields to support the theory tiLat cigarette smoking causes lung cancer. After five years of studies, for example, the British Empire Cancer Campaign reported "striking negative results" from animal experi- ments involving inhalation of tobacco smoke. The anti-cigarette statistics themselves have increasingly come under attack. Last year, for example, the British Medical Journal published a study involving the heaviest cigarette smokers in the world, native white males in South Africa. This group was found to have a relatively low lung cancer death rate compared with that of immigrants to South Africa from Great Britain and other European countries who smoke less. The cause of cancer remains unknown and many reputable scientists and scientific bodies continue to refuse to aecep~ the anti cigarette theory of lung cancer. In December 1959, commenting on a review article of the United States Public Health Service. the Journal of the American Medical Association stated tha~ an "all-or-none authoritative position" in this mat- ter is not warranted by the evidence to date. STOCKtlOLDERS" ANNUAL 51EETING The Annual Meeti~g of Swckimlders will be held on Wednesday, April 6, 1960. Fom]ml notice of this meeting, together ~ith the proxy and proxy statement, is enclosed ~ itb this report. Before closing this letter I should like to acknowledge the many com- munications we have received from our stockholders during the year. Especially gratifying have been the stockholders' continued loyalty to the Company's products and their efforts to promote our brands. On behalf of the Board uf Directors, I am pleased to express ore" appre elation for the eooperalion of our customers and the loyal service rendered b5 our employees. PAUL M. HAHN President PAGE rLEVEN

Tareyton DUAL YILTER

HER#TAREYTON CIGARETTES MODERN SIZE

1959 OPERATIONS AT A GLANCE The Compal9" received .for goods it sold and from dividends, interest alul miscellalzeous. . $1,161,888,000 E E This is how it was used or set aside 52.9% Taxes (e×cise, income, social security, etc.) $614,21 g.000 23,3% Tobacco (including applicable expenses) $271,052 000 17,8% Wages, Goods, Services, etc. $207,463 000 ,8% Bond and Bank Interest $ 5,90fi,000 33% Divide~dstoStockhalders $ 35,730,000 2,4% EamlngsRetainedtoMeetFutureNeeds $ 27,518,000 p~CE FI)URTEEN

• t ' Cons )hdated Statements of INCOME AND RETAINED EARNINGS Fei Iglll'g l~g!dcd ])~('~ I~lller Jl 1959 Net Sales ............... $1,161,376,858 Cost of sales, selling, genera[ and administrative exoenses .............. i lt019,129'251 Operating Profit ............. 142,247,607 Other income ............. i 511,415 142,759,g22 Interest and related charges ........ 5,906,001 Other deductions from income ....... 781~75t Total deductions ....... 6,687,752 Income, before taxes on income ........ 136,071,270 Federal and other taxes on fncome ...... 72,823,000 Net Income .............. 63,248,270 Retained earnings, beginning of year (includes December 31, 1957, retained earnings of a previously unconsolidated subsidiary) ..... _ 227,389,707 290,637,977 Cash Dividends: Common stock, $5 per share ....... Preferred stock. $6 per share ....... Total dividends ........ Retained earnings, end ef year (Note 2) ...... Deprecation provided and o~'arged to costs and expenses amounted [G $5,215,154 n t959 and $4,849,930 in 1958 1958 $ 1,105,176,334 971,131,896 134,044438 479,879 134,524,317 8,005,598 1,524,477 9,530,075 124,994,242 66,138,000 58,856,242 204,263,06I 263,119,303 32,562,610 32,562,610 3,! 66,986 . 3,166,98~ 35329396 35,729,596 $ 254,908,381 $ 227,389,707 p ~C~ FIFTIES

CONSOLIDATED ' ' ' BALAN(,I StlEETS ASSETS Del.~ #~l,t Y 3l, f959 Cash ................ $ 17,748,414 Accounts receivable~ customers .... ,, , - 81,910,968 Leaf tobacco, manufactured stocg, operating 5[ipplb.s, etc., at average cost .......... - 686,g88,134 Miscellaneous accounts receivable ..... • 1,69&T88 Total current assets . . . . 728,828,304 Investment in and advances to an unconsolidah d sub sidiary, at amounts not in excess ot cost {Note 3) 5~g55,06g Insurance deposits and miscellaneous ]nvestmenl~. • 1,113,692 Land, buildings, machinery, etc., at cost, [e~s dgJw ance for depreciation, 1959, $55,844,77G; [958, $52,767,525 ........... . 67,776,385 Prepaid expenses and deferred charges . • 3,652,437 Brands, trade-marks, patents, good wiJ[, etc ..... 1 $806,525,888 $g68 $ 20,696 311 46,942 630 648,310,916 1,318,225 717,268082 7,985.750 1,286,764 g4,894,8a9 5,096,257 1 $796,531,703 PAGE$IXTE£N

LIABILITIES Dece?~lbet ]l, Notes payable ............. Loan payable by British subsidiary ....... Accrued taxes ............. Accounts payable and accrued exoenses ..... Dividend on preferred stock for quarter endeo December 31 ............ Debentures to be redeemed through sinking fund opera tions (Note 4) ............ Total current liabililies .... Debentures ¢Note 4) ........... STOCKHOLDERS' EQUITY Capital stock (Note 5): Preferred, six per ce~t cumulative, par value $100 per st7are ............. Common, par value $25 per share ....... Excess of net proceeds from capital stocks [sslJed over par values .............. Retained earnings (Note 2) ......... Total ........... 1959 $ 56,000,009 4,410,546 53,817,206 15,760,433 791,746 9,624,000 140A03,931 155~653,000 291,056,931 52,783,160 t62,813,050 44~964,426 260,960,576 254,908,391 515,468,957 $805,525,555 1968 $ 66,000,000 50,655,309 15,211,365 791,746 10,521,000 143,179,420 165,402,000 308.581,420 52,783,100 162,813,05R 44,964,426 260,56057g 227,389,707 497,950,283 $795,531 703 P,GESEI'ENTE[N

Notcs Accompanying Financial Statements 1, 2. 3. 4. 5. 6. 7. The accompany ng cease dated financial statements incblde all who] v-owned subs d aries. The Company acquired the minority ~e -est n C.(~ den Re t ]~,![anufacttlring Company n Jan ary, 1959. Acco "d ng/, this subsidiary not pte~inus]y consolidated, is included for 1959, and the fnancial statements for 1958 ha~e been ad usted to reflec~ this acquisition as of .Yan/al7 1, 1958 Under the plovlsinns of I he indenture relating to the Twenty Year 3~'~ Debentures, due Ja uarj I, 1968, cash dividends declaled on common stock and payments made in purchasing shares of any ClaMS of be Comps "'s s ock subsequent to Deeolnber 31, 1947, may not exceed the aggregate of $15 0O0 000 and consolidated ne c me ea "ned subseq/ient to December 31, 1947, Iess dividends paid cm preferred stock. At December 31, 1959, app'e× nla e y $220,600,000 of retained earnings was free of this restriction. The net tangible assets applicable to the investment in and advances to an unconsolldated subsid iary at December 31, 1!~5!) &lid I958, amounted to $10,069,546 and $11.548,284, respec re" Interest received from this snbsidiar~ ~as: 1959, $254160; 1958, $305.966; the equity in earaing~ amounted to : 1!}59, $653.953 ; 1958, $677,163. Debenttues outstanding at ])ecember 31, 1959, emaprise: Twenty year 3~, dtle April 15, 1962 ...... Twenty year g%, due January I, 1968 ..... Twenty-five year 3~, due OeLober 15, 19(19 .... Twenty-five year ~ %, due February 1. 1977 . . Principal Ammmcs Redeemable Redeemable After Wkhin One Vent* Dec. 81,1960 $3,074,000 $ 31,013,000 3,000.000 39,000,000 2,180,000 43,372,000 1.390,000 37.238,000 $9.621,000 $150,fi5;~,0 fi0 *Esti!uated princlpa[ alnuttr g~ to be redeelned thT"~ug-h si~-king fund operatlOnS at prices a~ pro~ Jded b3¸ the indent[Ires. Capita] stock at December 31, 1959, comprises: S]2al'es ~hal~s Authorized Issued Prefel'l~ed ....... 540,106 527,831 Common ........ 10,000,000 6,512,522 The stoekhoidels wil{ be asked to vote at the 1960 annual meeting on a proposal to change emh share of common stock of the par value of $25.00 per shg, re into two shaves of common stock of the pal" value of $12.50 per share, This i~u]d increase the eolnnlon "Shares Authollzed" to 2 0,000,000 and Sha es Iss ed to 18.025,044. A noneontt'ibntol'y Retirement PIan providing tlnftlnded (pay as you go benefits for eli/p oyees ba~ been in effect since January 1, 1949. l'nder tile P]all tile (ompany ha~ tbe ri/fl~t to amend, mndlfy nv et'mina e the P an in whole or irt part at any time. Fa men s made /ind¢l* the Plan and charged to ine~lroe amonnted to 81,128,82:1 in 1959 and $1,067,074 in 195~. Substantially ]al'gel annual expenditu,'/'s ~iI/ he reqLlired if the proposed revisions referred to in Nc~te 7 a~'e adopted. The sLo~khoIder~ wil] be asked to vote at the 1960 amlual meeting on levisiens of the Co apany's Retilement Plan indudlag a provision for funding, a deferred Profit Sharing Plan extending benefits to legnlar fail i~t e emp ~vee~ of he Company and designated subsidiaries as well as all amendment of the Incentive Compensaiion Plan under Article XII of the By-Laws. as set forth in the Proxy Statement, to become effective in 19it0. pAGF EW, I~TEEN

SUPPLEMENTARY FINAI~CIAL INFORMATION Illventol'iff8 Leaf tobacco ................. $586,605,133 ~anufactured stock .............. o 1.065.(37~, Supplie~ .................. 19,009,023 TOTAI~ ................. $6o6 68(),134 December31 1959 1958 ~78,305,788 49,517,~29 18,829,248 1,658,051 $648.310.926 Inventories used in the comDutatioa of coat of sales al'e priced at costs which resu]t from the aveiaging monthly of tnmsnct]ons reflected in the inventory accounts except ~]~t r~veRue ~tamp inventoPie~ weYe ~liced at actual co~t. I~ 1959 the ~'rea~ury Departrne~l~ instit//ted the return ~y~tem for ipayn~erlt of excise taxe~ Oil ~i~Ltetl~s Ilrl~ tob~l~:o. T]li~ 171~thod of ttix p~vt22~llL ~I]mlnated ~he tl~e ¢~f l'~venNe stamps. Land. Buildings. "~[al'hin(yl'y. 1"14', C, RO~S Land and buildings .......... $ 53,708,587 Machinery and equipmell( ........ 60.135.283 Office furniture alqd equipment .... 3,9]3,847 ALttomobile~ and truc~:s ........ 4,080,698 Gonstructlnn ~n process ........ 2,484,946 TOTAb ............ $123 622,162 Ogev~lbel, 81,1959 ALLOWANCE [~0~ DEPR~GIAT[0N $27,4~0989 24.426,250 1,993,073 1,944,464 $55.844.776 NET $26.227,598 ~5,709033 1,218,574 2,13fi,234 2,484,946 $67,776,385 z p~ NINETEEN

Report of Independent Certified Public Accountants The Board of Directors and Stockhelders of THE ~*MERICAN TOBACCO COMPANy: We have examined the consolidated balanc~ sheets of THE AMERICAN TOBACCO ( OMpANy as of December 31, 1959 and 195~ and the r~]ated consolidated statements of income and retained earn~nffs for the year~ then ended. Ou," examinations wcre made in accordance with genertt]]y accepted auditlnz standards, and acccwrHngly ineIuded such tests of the accounting records of the companies and such o~her auditing procedures as w~ considered necessary in the circumstances. hl oul" epinloa, the accompanying balance sheets and related statements of income and retained earnings ppesent fairly the consolidated financla] positlon of The American Tobacco Company and its wholly-o~med subsidiaries as of December gl, 1959 and 1958, and the con- soiidated results of their operations for the years then ended, in conformity with generaiIy accepted accounting principles applied on a consistent basis. LYBKAND, ~O~S ~ROS ~¢ MONTGOMERy New York, February 2, 1960, PACE TWEr4Ty

DIRECTORS OFFICERS { ) RP}IEIT~ D. ~AXAL~'S 2\ LFRED F. ~0WDEN THO~[AS P. CONNORS JOHN A. CROW[ A CORDON FINDLAy CHARLES GANSHOW JOHN G. HAGER, JR, VIRGIL D. HAC, ER PAUL M. |{AHN H IRA 2.[ R. ~AN M EI~ HARRy L HILYAKD A. LEROy JANSON FERDr NA ND ~@ ALLGRAF JOIIN B SpAp~RUW SILAS E. STRICKLAND GEORGE L. TURNER ROBERT ]3. ~%~ALKER (~GORt;E ~k. ~VILKI NSON V%'ILLIA]%[ B. YOUNG PAUL J|. HAHN. Pr$~[¢lell~ JOItN A. CROWE, ,N~!~lior Vice P~eMdent ALFRED F. BOWDEN, |Tic~ PTe~dent VIRGIL D. HAGER, Vice P~esident HARRY [, HILYARD, Vice Pr~de~l~ ~d Tl~t~8?l~er A. LEROY JANSON, T~e~ Pre~iden~ ~nd Con~ptrvll~r ROBERT B. WALKER, ~ice Pl~sideTIt GtlARLE~ (~ANSHOW, D~u~y Conlptl ol~er J. WESLEY DALE, Audilor JOHN W. IIANLON, S~c~t~y WALTER A. I(EN,~uy, As~3tant Aud~tOr FRFDERICK W. KEA'NY, :18si8~ ~ S~C~eta~ JOSEFH R. WATERHOUSE, A~i~an~ T~easu~e~ ~RANCIS X, W~fELAN, A88~n~ T~as~'er ExecIl~fve O¢~ce 160 East 42nd Street, Ne~ Y(nk 17, N, Y. Co~or~te 0ffi¢¢ 117 ~ain Street, Flemington. N. J. T~ailsfe~¸ Agen~ ~organ Guaranty Trust C~Inpany of New Y~) ¢'k, New York 15, N, Y, Rcgi~t~I¸ First National City Trust Company, New York 15, N. Y. PACET%~TY-ONE

TEN-YEAR FINANCIAL REVIEW IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) YEAR 1950 1951 19~2 t953 Ig54 1966 1956(I} 19S7(11 1958111 |D6gll ) DmC~MBER 31 Ig~$0 1951 tg52 1953 195~ 195t 1956(11 19B7(1) 195e(11 NEt SALES $ 871,621 942,552 1,065,738 1,088,380 1,068,579 1,690,845 1,091,206 1,098,093 1,105,176 1,161,377 IN¢OMI BEFORE IAXE$ $ 76,725 60,411 78,352 99,232 91,056 113,061 111,352 1i8,605 124,994 136,071 CURR~NT tNVENTORI~5 A$$E~ $532,679 $553,026 594,544 668,234 640,753 712,654 651,044 726,577 632,143 703,085 656,241 727,648 655,116 724,423 671,381 740,483 648,311 p .717,268 656,680 728,026 TAXES ON INCOM~ $34,992 47,301 44,283 58,066 48,005 51,399 59,663 61,510 66,138 72,823 WORKING CAPITAL $469,653 456,056 551,255 548,305 550,454 555,856 566,581 569,345 574,089 587,624 NET INCOME AVAILABLE pER AMOUNT COMMON SHARE (! $41,733 $7.17E.~ 33,110 5.57~o~ 34,669 4,79(b~ 41.226 5.90fb) 43,051 6.121,1 51,662 7.45(~ 51,689 7.45t,I 57,095 8,28[=: 58,856 8.55(d 63,248 9.23f,~ PLAN? AND EQUIPMENT (NET) $43,747 44,246 44,480 46,571 47,I89 49,058 52,216 58,154 64,895 67,776 PACR TWENTY~WO NOTES: [1} Includes all wholly-owned subsidiaries. I2) BaSed on shares as follows: (a) 5,378,425; (b) 6,454,I10; (¢) 6,512,522. (3) After deducting "Brands, trade-marks, patents, good wil;, etc." (4) Comprises notes payable to banks a~d to others, bank Eoans payable by British subsidiary and funded debt redeema hie within one yean

ANDITSCONSOLIDATEDSU~S~DIARIES QIVIDENDS COMMON pREFERRED AMOUNT $21,514 21,514 23,934 25,816 28,654 28,655 32,565 82,565 32,565 32,563 TO]At ASS~3) $657,405 734,480 783,154 798,870 775,364 801,725 794,404 815,207 796,532 806,526 PER SHARE ($6 pER $½AREb $4.00 $3,162 4.00 3,162 4.00 3,162 4,OO 3.162 4.40 3,167 4,40 3,I67 5.00 3,167 5.00 3,167 5.00 3,167 5,00 3~167 DEBT FUNDED SHORT TERM (41 $215,653 $ 83,722 205,430 149,456 243,570 102,950 231,256 105,107 218,967 91,575 206,328 101,387 193,188 91,555 179,330 104,785 165,402 76~521 150,653 70,035 RETAINED EARNINGS $17,057 8,434 5,873 i2,248 11,230 19,540 15,959 21.355 23,126 27,518 NET WO~H (3) $307,392 315,825 377,074 390r332 403,765 423,605 443,374 464,739 487,950 515,469 SINKING FUND ~EQUIEEMENT$ $ 9,942 10,154 10,377 11,989 12,261 12,532 12,839 13,144 13,468 13,800 BOOK VAtUE PER COMMON 5HAR~ [33 $47.35 48.92 50.25 51.83 53.89 56.94 59.98 63.26 66.82 71.05 VEA~ Ig50 19Et 1952 ~g53 $954 1955 1956(1~ 195711) 19ESS(TI 195g(1~ DECEMBER 3~ 1950 19~2 1953 195~ 1955 tgs6(ll t957111 1958(TI 1959~11 p~CE T WE~*y-TH RE~

Y()[TR COMPA_N¥'S PRIN dPAL PRODUCTS which mahe your di~,ide~zds tmssible CIGARETTES l',l~lL ~IAI.I. "0utstartding . . * and ~hey are mild!'* the nation's King. PALL 7~ALL'S ralnou8 leng~h of fine tobacco travels and gentles the smoke rn,zke~ it nlild. N~ver too strong. Never too xleak. Always just right! And you can iighI tither end! LUCKI" ~TIIIRE A blend of the finest Turkish and dome~tle tobaccos, Tile LUGKY STRIKE process 'It's Toasted" enhances the taste of these fine tobaccos. A leader anloTlg standard size brands DUAI FILTER TAREYTON "Filtel'~ as no single filter can . . . for mild, full flavor" be- eattse it has a pule white oute¢ filter Dlus an exduslxe iIlllel' tilter with Activated Cha~coa] It has been definitely proved }hat Activated (Tharco=ll makes cigarette smoke mild and smooth ItERBERI" TAREYTON II~ distfnetive flavor and mih]nt!gs have been f~lllOu~ for rflol'e ~hall 40 )etLI"S FuJI king size /~ith the tip that stays s~ pleasantly firm and fresh HIF I,AI{ADE FILLER TIp Gives high filtration plus free draw and the rich fI*,vor of 7me rob tree The Cumpan~ al~o nlanulaetures SWEET CAP~RAL, JOHNNIE WALKER 0MAR, ~ATURAL add [.~E~D ~ALI~BITRY ei~..~l'ettes A new brand in the iilter mertt}loI fled, I{IYIRRA, is being rested in a ~mal/ numbel of se:ected markets. CI~;A FI 5 sol-raN /argesl selling 10 eiga~ in America. Also ROI TAN Cigarillos and Trumps a[ 5c and G*kfers at 4<. "ROl TAN has more of evelvthln~' t]lan any clglw at its price dIF~T(I~/I{I Y CI I~OPATIIA tile s~ihtesf dear Havana cigar IA {:IIIIO~A - "~lll)l'ellle the ~gOlld Over" lllll:k • CA tlH origill/d Dam trig. evea~ed in Havana in 1888 • ',Itltermtt[onal ~l~n(ls.'~ ~nlclng which ale LA CORONA ~0CJg y (~A and [(Eh'RY CLAY, are n, an /faetmed by subshlia~ies of the Company, ill Cuba ard in the ( hired States ~al;x~s These WOP]d feTtle/J}! cigars are made 111 Uuba a11d exported to the United States by I s tllsi([ia*~ ~ {he ('o/IlIItiJ2y The (J~n/pany also lllalltl~w~tne5 CltAFCELLOR, ~ high glade domestic tidal ~MOI~IHG TOBAC~I~ H',I.F lAD IIAI.~ the Company's leading granulated plug ¢:t/l, Burley and I~light. Being m:tlh t~vaiIable in pouch-ln-box packln]v for double pl ot~'l t [inl, longer lasting" freshness BLUE RO.'tR American Tobacco's leader among hlgh-lcrade pipe Iobacco blends (;~N~I~ a*~Ll 1 "" i)i RR.%}I still far a~d away the NO. 1 "roll your OWil' tobacco Amon~ the (?ompany~s other high g!'ade smoking mlxtul'es are CARLTON CLUB, H~'aRRgF4¢ TARIIy¢~N ~KI]I] ~lllFN : Otl~er p,~ptla:.plJee,, blonds include CO~IPASS, C1 lIT pIl~, ~IyG I~ROS, }IONEST LONG CUT, IIANUO~, p~:aLgSS (ADAMSi, l.l~RTy, ~TANDARD (.~DAMS), ~t'CRIh'GI[A~I and TUXEDO. pAIIF TW~XTI" FOUR ~INV~D i~' • S a

-f

UOlU~H "~X u~o[ J.~'4VHI~OD ()DZ~V~O3, ~",Ix, zDI~l*='V 3HJ. ,no,{ >iu~l.L ~J ~XOX~ $IHL

P R 0 X Y Tills proxy is solicited by the Management, Tile uw.lersigned hereb3 appoint~ PWL ~i HA~% J{J~lx ~ Cx-~E and A. L~I<oY JA:,so.~ proxie< ~ith I/O~er o~ sul)stitution, to ~ote at the Mmlal 5Iccting (including adjourements) oI Sroc]dlolder~ of The \lncliean "I"obacco CompatK-, to be Leld April 6. 1~)60, {or ~]lc election of directors, oil Propo~,~l~ 1, 2 and 3 referred to herein and described ill ~he Proxy tile lu]dcrsigne(~ /lou[d po~ess ii peisonglllv preseut A lnaiority (or* i[ olllv olle Lhell {iv~t one) of the proxie~ o tllelr substitutes acting at tile meeting may exercise a~l powers herehy ¢Ol1~eFred, If a choice is not specified, this proxy is to be voted ~or Proposals 1, 2 and 3, .l]l~v*gclll~n~ ~,~collllllct~d~ ~ g'otc ~01~: ~oy~ AGAINST Propo~aI 1 for election ii~ Lvbrand, Ros~ ~to ~ Mcnlgomery as imlepcndcnt auditors for 1961 ................................. [] [] (Contimted a;ld ~0 be si!med on t/re other .~dc)

PLEASE DATE, srGN AND MAIL THIS PROXy IN THE ENCLOSED POSTPAID ENV~EOPE ~]/Lriz4r~]~*/ii~Jit ;i,comm¢~ids (Z vole ~O]~: FO~ AGAIX~T 2roposal 2 ~o spli~ Coum/rm ~[ock and amend Certificate of Inc0r- porat{o .................................................. [] [] Proposal 3 ~o adopl Profit Sharing P]an, amend Artlclc XII o[ 13y-Laws and ameml pre~e=l~ Retirement Plan ................... [] E • o Dated ............ , 1~50 ( StocMmider should ~ign here ) When signing as attorney, execut0r admJnJslr,~JBr ~ruslee or g~[OJao, pio~so gve yo~ U Is as SUC~

P R 0 X Y This prQxy is solicited by the Marlagemellt, The undersigned her e])~, appoilltS I~AUL ~. ~AII X, JtlH:~ A CRows ztlld ,~, LI I,~o~ JA.~.SON proxies, with power of ,~ iI/~tJ:ution, to vote at the ~, mlnal ~[eeting (includi~lg adjottrnmmltS I of Stockholder~ o1 The American Tobacco Company, to be held April 6, 1960, for tile ~lectiotl 0i i[il"~C~or~, oil Pr(}po$a/s 1, 2 alld 5 referred to hercin al~d descrthcd i:l tm Proxy Stateln~l~t, alX[ oi1 a%. /[her bt~silles~ t}lat nlav come ])e{or~ the incetiilg, with aIl powers the mldersigned would possess [{ personally present A majority (or, if only ~me, tllen th~.t one) Ol tile proxies or t}l~i~ sul)stitute$ actitl~ nt tie n/eeting lllny ex~rcise a]] po,~ers 11~reb1, ~ onterl-~E[. If a choice is not specified, this praxy is to be voted for Proposals 1, 2 and 3. Prnllosal 1 [or electiot~ of Lv)rand, l~.oss Bros, & Montgomery as mdependm:t audi:ors /or 19(~0 ................................. [] [] (Cont~llued a~d to be slg~.ed o~; ll*e ~¢]wr sld~)

pLEASE DATE, E~fq ANO MAIL THIS PROXY iN THE ENCLOSED ~O~TPAID ~NVEL©pE ~!/!~J.?r ~ntglll ~olIiJiIe~d~ ii ~,ot~ Fg]~: Ft3R O.GAINBT Froposal 2 to split Common S~o<1< a~l amend Certificate of Incor ~ lJorzttio:l .................................................. .l¢iji(T ,cTjieH! i,ccoJil)J~e;ic~,~ (i ~,o{~ FO~, f"roposal 3 zo adopt P~ot~ SIkrf~tg ~lan, ~lnel~d Articl~ X~I of ~y J.a/Is aLld anlcnd pit eLp IiCt!l~II!enL Plall ................... ~ [] Dated .............. 1960

NOTICE ¢¢ NEETING ANO FI~0XY 5TAYEMENT (ERC.LO~,KU WITH ANNUAL F~IEPORq ~I~CEf~E~R 31, 139) . -- _ ____ ~OTIC~ OF MEETl~G ]:3emington, New Jersey T]*e Amntal Mcnting of =tockhoklcr s of The American Tobacco Compat,y will he Izcld at tIL~ llu~,tecdon Theat~u, u~rncr of ~outc 69 and Chtzrch St~ct~ ~]emin~n, Nc~. ~rsey, at one thJrty n'clock in th~ afternoon /Eastern Stant~ard Tim~) on Wcdnc~ay, A~ril 6, 7960, ~r the following purposes: (1) To elect DireE:tors; (2! To c~ns~dct ~md vote on a proj~osal (designated Proposal I a~d se~ forth iJi ~c follo,xlng p~xy stat~m~lJ to elect Lybr~nd, Ros~ Br~s. & ~'[ontgotacry as ~ndepcndm]t aud~tor~ for the Company for flze y¢=ar 1966, which prol~os~ ~as bccn rccommendec~ ~y the Ma~agcment ~ (3/ To consider and vot~ on a [3~oposal (desigl}a~d p~l~osal 2 ~t.] set ~orth jtl the f~llo~ing pro~y irate mwtl, fic~a~cd afivl~abie by ~hz~ ~oard el I~d~ect~, ~al (~) th~ l~ar ~alu~ ~ the auth~r~z~tl Co~mon $~o~k both ia~ued arid un~sstzed be c]~ngcd f~om $Z~ per share to ~12.50 pet ~lmr¢~ (1~) each out~tanJ~t~g shale of Commou St~ck ot the par valne ot $25 per s]lnrc be eha~ed into two ~i~ares of Gommo=l Stock of the pa~ value of $12.50 per ~ha~, (c) the per ~are voting rig~ of the pn4~rred SLeek be adjusted al~d inerc~ecl from four to ~i~t votes l~0r sitar e, and (d) the Certificate of Is~cor~ra~ion be amended in eonsummaHo~ of an$ t~ g~ve effect tr~ suclt changes and ad~ r~ttn~cai; (4) ~l'r~ consider and (dt~ignated Proposal 3 a~ld set forth in tht~ folJo~ring vot~ F~oposal fill proxy ~e~r~d ~i~Ul~ h'/ tl~ ~oazd ~f D~rs, (~/ to ~gt a p~SlZStt~$ Pt~ for empE~¢e~, (hi ~ amcud Article X[I ~f tire l~y.Law~ of t~ Corn?any and (¢) to araend tI~c Company's pre~cnt ICet~rement Plan; ~nd (5) To lransact ~UClt oiler bnsincss as ~sy properly come before ~he meetJt~ff. The stock transfer ~ooks will not be closccl 2out holders cf PrJe~etl Stock and Common Stock, to be entitled ~o vote, zn~ b~ hr,18er~ ~ re~, ~ th~ rJose el bus~ es= on Match 7~ 19f~. JolI~ W. H,t~I~N, S~cr~la~y

PROXY STATEMENT The enclosed proxy is solicited by tile Management. Th~ prexy may be revoked by notice in wrltln8 given to the Secretary at any tmle before behlg voted. Proxies in the form enclosed, properly executed by stocldlolders and duly returned to the Management and not revoked, will be voted and, where a specification is made on the bailer provided ~herein, will be voted in accordance ~+ith ~ucit speelheaden, The Management is nat a~are at the date hereof of any matter that is intended tu be peosemed at this meeting o!her than the dection of dlrectors and Proposals 1~ 2 and 3. [[ any matter not known at the date hereof is properly presented for action at the mecfins, it is intended that the persons named in the proxies will vote thereon accordi~g tu their best judgment. Altendan~.e at the meeting does not serve to revoke the proxy. Th~ number ol shares of each class of voting securities o1 lhe Company outstandh~g is: Preferred, 527,831 shares; Cornzrtort. 0,~12,522 ~heres. The Preferred Stock is entitled to four votes per share. The Common Stock is entitled to one vote per ~hare. The recetd date for the deter ruination of stockholders entltIcd to vote at the meeting is file close o1 business March '7, 1960. ELECTION OF DIRECTORS The Board of Directors consists of nineteen member~ who are elected to hold ofi~ee until the next Annual Meeting or until their successors are duly eleeLed mid qualified. It is intended that proxies in the accompanyirtg form will be voted for the nominees named below. These nominees are members of the pr~ent Board and ha~e served as diseeters o1 the Company fQr the periods commencing with the da~s set a~t~r their respeetive nameo. The Company is informed that theze nominees wer~ directly or Lndiseetly the I~ncficial owners of outstanding securities of the Company at the close of business on Februaxy ~, 1960, as set {orth alter ~lelr respective names. Year First Sales Vice President, American Cigarette and 1953 Cigar Division, and Deputy Comp. troller Chief of Manufacture, Cigarettes and b956 Tobacco Vice-President, Manufacture 1955 President 1931 Vise-President, Department of [(eseareh 1938 and Devcispment Vice President and Treaaurer 1944 Vice-President and Comptroller 1%48 Director of Purchases 1957 Vice-President, Araeriean Suppliers Di- 1958 vision Charles Ganshow 1.0O0 John G. Hager, Jr. -950 Virgil D, Hager 300 Paul M. Hahn 4.784 Hiram R. Hanraer 300 Harry L. Hilyard 750 A. Legoy Jansen 500 Ferdinand Mallgral 200 Jtdm B. Sparrow 500 posltlous and Offices wilh Company Elected Name and Principal Occupatlon { a) Director Common Preferred Orpheus D. Baxalys Vice President and Mmlaglxg Director, 1990 9,445 62 The American Tobacco Company of the Orient, Inc. (b) Alfred F. Bowden Vice-Presldent in charge of Public Re- 1951 700 lations Thomas P. Connor~ Director of Tra~c ]946 300 '75 John A. Crowe Sen~or Vic~-Presldent 1931 900 ' 305 A. Gordon Findlay Vice-President, American Cigarette and 1953 2,f/05 Cigar Division, and Chief of Cigar

Y¢~ar First Posll otis and Offices with Company ElecLed ,Name and principal Occupation (a! Director C,~mmon Preferred 5il+s E. Strickland Vice President, American Suppliers Db 1957 1O0 visinn, and General Manager of Stem- meld~ President, ?+merican Suppliers Dinision V~ee-Presldent and Director of Sales Director, Ta-,: Department ~.sslstant to Ihe Senior Vice-President Gcorge L. Turncr 1958 300 Robert B. Walker 1955 410 George A. Wflkinson 1957 3OO William B. Young I956 779 (al The posifion~ and offices l]~ted ~tttcr the name of a rlomiaee are with th8 Cusllpanyt unIess otherwise noted, and are hls pria¢ipa[ ~ceupation Ibl Affaliated company engaged in purchase and handliL, g el leal Iobacc~+ The Company is a/so informed that none of the nominees was directly or indlrecdy the beneficlal o,~mer on February 1, 1960, of outstanding securities or suheMiaries of the Company, other than director+' qualifying shares. In the event any nominee is not a candidate m is unable to serve as a director at the time of the election, which is not now expected, it is intended that the proxies will be voted for any nominee who shall be designated by Ihe pre~nt Board of Directors to fill such vacancy. RE.~IUNERAT/ON Remuneration o~ Dir~tors and 01~cers. There is set forth in the fellowlng tabulation, on an accrual basis, all direct remuneration paid by the Company at~d ils +ubsidiarlcs to the following ]persons for services in all capacities while directors or officers of the Company during its last fiscal year: each director, ~ld each oi the three highest paid offtcers, of the Company whose dirc~t aggregate remuneration exceeded $30~090; and all directors and officers of the Company as a group. Estinlated annual retirement benefits ~o the same individuals at normal retirement date under the Retlrcment Plan for employees adopted by the stockholdms at the i949 Annual Meeting are staled in Cblumn (4)+ Alfred F. Bowden Thornz~s P. Co/lnors John A. Crowe(c) A. Gordon Findlay(c) Charles Gnu+how(e) John G. Hager, Jr. Virgil D. Hager Paul M. Hahn(ei Hiram R+ linnmer (4) Ecxlmat~d annual r~tirement bene fit ill (2) 13) at aormaI Name of indlvidttM Capacities in which Aggregate retirement d~.te or identity of group ~e~anorat/on was r ¢eeived ( H remuneration (b) under prc~ent Plan Orpheus D. Baxalys Vice-Presldent and Managing Dilector, The $ 66~763 $11,080(e) American Tobacco Company of the Orienh ftl¢, Vice-President in charge of Public Relations 62.932 17,750 Director of Tra~o 44,893 11+744 Seblor V~ce-Pres~dent 145,321 1g,44~(e) Vice-Presidenb American Cigarette and Cigar 56,177 16+250 Div~sinn, and Chief of Cigar Sale+ Viee-Presblent, American Cigarclte and Cigar 57,752 11,361 Division+ and Deputy Comptroller Manager of Louisville. Ky.~ Cigarette Factory 43,067 11.798 (d) and Chief of Manufacture, Cigarettes and Tobacco V~ce-President= Manu~aelure 76.098 1~.82I President 207.901 14~250(c) Vice+President. Department of Research and 63,508 12,756(~) Development

(1) ~,~me of Jn,¢i~ MtlaI Ot ideniky oF group Harrp L. l'lilyard (ci A. LeRc~y Janson(c) Ferdinand Mallgraf J(~hn B. Sparrow Silas E. Strlckland George L. Turner Robert B Walker George A. Wilkinson Wdliam B. Yotmg(¢i DireCtor* and O/~:ers as a group E~,t [mated annual retirement benefit 121 (3) at normal C~p~, itie~ in whie]l Aggregate retireraeot date rf!motteraEiort ~.t$ .ecelved I a I remtlner~ttlol~ (b) u~der pre~ent P[~n Vice-Preeident arid Treasurer $ ~3,076 $ 6,599(e) Vice-Preeident and Comptroller 08,365 i7,390 Director of Purchase~ 56.252 7,fg2(e) Vice Preside.t. American Suppliers Division 37.410 0,975 "¢ice.Pregldent, America~ Suppliers Division, 49,770 13.373 and General Manager ,al Stemmer~e~ PreValent, American Suppliers Divislott 60.055 11,098 Vi~e President and Director ot ,~ales 76,09{I 20,0(~3 Direct~>r~ Ta~ /)e4aartment 40.846 LO~021 Assistanl to the Senior ¥1ee.Presldent 54,299 9,279 Directar~ and O~oee* as a gronp 1,453,&80 (a~ Capacities r~E~rg~d to were wkll '/'he Amerbcan Tobacco Company, uMess ollmrwi~e indlc~ated. Tile Amerieart Tobacco Company of the Orient, ~s~e. i~ ar~ affaliated compaa}, engaged in purella~e an~ llandli~g o~ ]ea~ tobacco. tb) Includes andcferred ncmeontingent portioa o~ incentive eorapen~atittrt for 1959 under Article XII o[ the B~L~ws. (cl AI~ o/~cer of ~tt~l~ated cotnpat~y ot coJ~pan~e~ {d) Prior to be~o,ning Chiei ~f ManuCacture, Cigarettes and Tobacco, on .lu/~ 14, 1959, (~) Ptefleetst aetuarRIl vedttetlon re~ting fror~ iris election twh~eh wUl bee~me irrevocable I~p~a eomanetteerae~tt of ~oel~tafit palraer~ts) t~ take a re&to~ Fen~Joa ~ayable to Mras~Zf for life a~d to a bcae~teiary ~r l~e. if the L, eneficiaO. sltrvllcs hlm. Depending upon aetuarlal calculations the anr~ual pension Ipaymentl to four of the indlvid~als indlcated a~ l~t, vir.g mado ~ueh election mad to their beneficiaries ra.ge ~rom. 58% to 71% ol the ann~la/ beneDz ~ch individuals wo/dd have been entitled to it they had a~t elected ~ueh reduced ~ensionf. The p~nslon payments li~t¢.4 in the table ~er th~ remaining lx.o i~d~Jdt~a~ jr~ 80~ aod 86'~ o/ ~he araounl~ the,, ~ot~d h~ bees enlltled I~, aad ~hetr s~irqag bera~zia~ie~ wdil receive ~nnuM p.a3ments of 40% and 45% of s~ch amounts, respectively. The deferred porti~ of ineenHt'e eompe~satioz~ ullder Ar~ic)e XII of the By-Laws accrued since /957 (the £r~t year for which it was provided) is payahle to each participant in equal annual contingent installraentz during the ten years following the ¢1o~ of Ihc year in which his employment hy the Company terminates. The respective amounts of deferred incentive eompensaLion accrued for 1959 for the directors and officers referred to in the a~ove ta/3[e and, in parentke~e~, the respective aanual installments to be paid to them after tel~aination of empl~praent in respect of deferred ineentive eoi~apensatlon accrued since 195~ are as ~ollow~: Orpimus D. Baxalys, $8,763, ($1803) ; Alfred F. B,3wden, $10,432, /$2,065) ; 'fhoms-~ P. Connors, $5893, ($1~235) ; John A, Crowe, $70,320, ($20,134) ; A. Gordon Findlay, $8,677, ($/,920) ; Chades Gan~how, $9,752, ($2,48I) ; Jolm G. Hagen, Jr., $5,817, ($1,161) ; ",/irgll D. Eager, $16,098, ($3,675) ; Paul M. Ualm, S87,9cg., 1525,167) ; H~ram R. Hanmer, $~1),50B~ ($2,689) ; Harry L. Hilyard~ $13,076, ($3,343); A. LeRoy Ja~son, $7.8,365: ($4,314); Ferdinand Mallgraf, 88.20~, ($2,165); John B. Sparrow,, $4,910, ($.37) ; Silas E. Strichia~d, $~,270, ($3.,976); George L, Turner, $10,005, ($2,011); Roberl B. Walker, $16:093, ($3,675) ; George A. Wilkin~erz, S7,846, ($2,092); Wi21i~m B, "1%~g, .~9,299~ ($&2JT) ; and Directors and Of~cers as a group~ $337~B31, ($06,741). No amnunt wa~ set aside ~r accrued (luring the Company's lasl fi~cal pear for pension or retirement benefits propoe, ed to be paid under an}" exlsth~g plan I~y the Company ~r any of it~t suhsldiaries to any o~cer or dlreetor of the Company. The prcsent Retlreraent Plan for employees eover~ approximately l&600 reguIm" Sull-time empIoyees of the Company and its ~ubsldiaries. The aggregat~ remu~eratlon f~r t}~e fiscal year 1939, from the Cr*~pany and it~ ~/0sldiar~es~ directly or indirecllp, on art accrual has[s, of a]~ the dlr¢( mrs and officers of the Company as a group, was approximaLely f~tteen one-hundr edt~ of l~'o o~ the Company'~ consolidated net sales.

PrvposoI 1 ELECTION OF INDEPENDENT AUDITORS The Mana~emenl prupo~-e~ and ~ecommcnds tbe election by the stockholders at the *~nnlla] ]~et till~ o~ ~Ie~srs. Lybrand Ross Bros. 8, ~,fontgomcry as indepeu¢ilnt auditors for the Company for the year 1960. In line with this ~ecommeudation tim Management intends to introduce at the torth~omlng Annual Meesh~g the ~allowing resolution (designated herelu as Proposal 1) : RESOLVED tbg[ ~lcssrs Lybrand, Ross Bro~. fi 3Ioulgomery be and they hereby are elected tbc indepemilnt auditors for the Company for the year 1960. This firm of certified public aceounta~ts have been for over 25 ycars the independent auditors for th~ Company. hi accordance with the Company's customary practice a memher of the firm will attend the Annual Meeting and respond to questions which may he ashed by stockholders. Tbe Ma~a,~ement recommenda that you vote FOR Proposal L Proposal 2 SPLIT OF COMMON STOCK AND AMENDMENT OF CERTIFICATE OF ENCORPORATION The meeting wi][ ¢on~ider and vo~ ~pon a proposed amenrkaent of the Agreement and Act of Merger and Consdldatlon of the Company, dated September 9, 1904, as heretofore amended, constituting the Certificate of Incorporation of the Company, which amen&ne~ has been dedaTed advisabil by the Board of Directors. The effect of the amendment, i~ aut~rized, will be to split each plc~ently authorized share of Common Stock into two shares, eash ~f ~rkich wifi have one-half the par value of the presently authorized shares; that is, the a~thorired shares o~ Common Stock will be thercascd from 10,000.000 to 20,000,000, and the par value of each share of Common Stock will bc decreased from $25 to $12.50. Thus, holders of Common Stock at the time the amendme~lt become~ elI~ctive will become holders of lwi¢e the number of shares of Common Stock, but without change irl aggregat~ par vaI~te. At the same time, the voting ~ight o~ the P~e~erred Stock will be increased frora four to eight votes per share. As the result of the proposed amendment, if adopted, each holder oI Common Stock will haw two shares o~ the par value of $12¸50 for ~ach one share held immediately before the ~lit. This will permit the ~tock to be t~aded in st a Ilwer price level and it is believed will have fi~e te~tdency of increasing the nu~e~ of stockholders. It is the plcsent intention of the Directors, depending on conditions at the thne. to increase the regqllar quarterly divldend on the Common Stock, payable on June 1, 1960. The increase "*oold be the equal of 60 ccnts per present Commo~ share on an annual calendar basis (I5 certts per share quarterly). This would make a r~gu]ar quarterly dividend (exaluslve of any extras) on each o~ the split shares, 57~ c¢~s per share as of June 1, 1960,mequivale~t to $1.15 per share on the present shares. It should be need that, in the purchase or sail on tbe New York St~¢k E~¢fiangs ~ Comm~a Stosh to be authorlzed it the proposed an~n~uent becomes effective, the brokerage commissions on the same aggregate par volu¢ of skates will be greater for the new shares (being twice as many) than on the old shares, and the combthed Federal and New York State stock transfer taxe~ on the sail on such Exchange of the same aggregate ]par value will be greater on the n~w than on the old shares. For example, tke brokerage co~m-olssion and Federal and N~w York State stock tr,~nsilr taxes ~o~ the sale on such Exchange of 100 shares of the present $25 par value Common ~tock, assuming a price per share of $107¸00 (at whlck shares were sold on February l, 1960) would be $57.98, while the same costs for the sole of 200 shares of the new B12.o0 par value Co~lm~ Stock at a price of $53.50 per share would be ~100.98. It is beIieved that the voting rights of the Preferred ~toekholdcrs, as they exist at present ~nder the Company'~ Charter, should, if the proposed ~ve for one st~ck spilt of Common Sleek is autheri~ed, be increased in the ~ame proport~on~ to wit, from four votes per share to eight votes per share of Preferred Stock, and the prepo~d amendment so provides. It is believed that financla] statements w~uld not d~lose anythlng malerlal to the exercise of prudent judgment as to thi~ Proposal. Financial stalements o[ the Company ar~ not, therefore, included ir~ this proxy ~atemcnL 5

No further cow, sent ~tl stocklloidrrs wdl Le required for the issttance of any o[ the shares which, when the D~O[iq/s¢~ a~l¢l/dnl~'l~l b~,~t/lll¢~ cfft~q!livo, w~d I/ave the stattl'; of ~uthllr~zl~d [~uL ilni~u~d ~h,qrl~8. The Bo,'lFc[ of i~il'el:t~li~ ll~ tie ida/T1 ~lt" LIit~ I~SII;LTI~ t~ Ill ~/11~]~ all~h~lt ized aIld tJni.~tl~d 5EI~T¢.% gild no ~llch pl.tn is ill C~tlEelllplutiiiiL. The i,ree~f~li~e ri~'bts of ~Lt:ckh~Iders under the la~ ~f Ne~ Jersey, that nii~bt b~ appL~able th event e~ issuance ~f ~cb ~hor¢~, are n~t rest~icled by the Certiticate of Incorporation. In the olpln[on of c~un~cl the holders of Preferred Stock o~ tll~ Company have no preemptive rights witb re~pe~t to its Common Sleek. If the propo.~ed amendment i~ adopted by the .~tockholclers, at their me~thig on April 6~ 1960, it is thtertded that the Ccrtihoate of Amendment shall l~e filed and become e~eclive on Apr~ 7~ 1960~ and that stock certificates evidencing the ~ddi~i~nal sharc~, to which eac]~ stockholder of record on that date shall become entitled, will be n~ailed thereafter upon compIetlon o[ the mechanical work in the making up of the additional st~ck certificates, whack wi[[ be ahout May 2, 1960. [t will ~ol be necessary thr sl~ckh~ldrrs tl~ surrender $25 par value stock certificate~ presently held by shen~, but such certldcates w~U hd~ d~n~d ~ represent the same number of sherez stated o~ the cenl~fi~:ates, :shh~u~h ~f the slualXer par value ~h~ch will then be a~thorlzed. RESOLUTION CONSTITLTING PROPOSAL 2 The prope~ed re~olntloJ~ c~n~t~tuting Proposal 2 is as [~llo~r~: ]RESOL~.~, a~ drcIared advisable by the Board o~ Directors, that (1) tile par ~alue of the authorized Common Stock both ~s~ucd and unissued bc chen~ed from $25 per share to $12.$0 per s'~are a~d the number of authorized shares ~[ C~r~l St~ck be increased ~rom 10,0(}C'~)f~0 to 20.000,0CI0 shares; (2) ~ch ~t*t~t~r:dlng silage of C~mmo~ Stock o~ the par value of ~25 per sbar~ be cban3ecl into two shares ~f Commort Stock ,3f the p~r ~alue ,~f $1~.di0 per shere; (3) the per share voting right of the Preferred Stuck ]~e adjusted ancl incre~E~d from four t~ ~i~ht wtes per share~ and (4) ~n consummat~o~l of such changes and thcr~a~e and adjustrnet~t, the Agreement and Act of Merge~ and Con~lldatlota dated Septcmher 9, I904.. as heretofore amended, con-~tut~ng the Certificat~ of lne~r- poral~on of t~e Conlpan',', be amendrd lay ~e~ising t~ first ~uv sentences ~f Article IV tl~reof s~ that ~ueh ~t3Ltr ~t~l~ce~ -~llatl ~e.:d: "IV. The total a~thor~zetI capital stock o~ the corporatlort is $304,010,600. Five Hundred. Forty Thousand One Hundred Six i54~,106) shares shall b¢ Preferred St~ck ~f the par ".'alue o£ $100 each. Twe~y Milllon (20,0ll0,000) ~ha~es shall be Common Stock of the par value of ~1250 each. The right~ ~f the h~lders of the said Preferred Stock and Comm~n Stock, r~spectively, shall be as ~lk~ws: The holders ~tl the P~[errexl Shock shall be en~iL~d to eigllt v~tes f~r each share of the ]par rathe of $10(~ heId by thena, and the hoTdrrs o~ the Commoll Stock shall he entitled t~ one vote ~or ¢ac1~ ~laare ,af the par value of $12.50 held by them." without any c~an~e in th~ remainder of ~aJd Artic[~ IV or any o~her portion *af the Certificate of Incor]p~ratlon as laeretethre amended, The vote in fawr of Proposal 2 of h~dders ~tl tw~ thirds in ~nt~rest of P~eferre(I Stock out~ta;*d~ng and ¢f two-tbird.~ in inlerest o'~ Common Stock outstanding (each voting as a class] is necessary for the adoption thereof, The Man~gem~z~ r~c~mrne~ds thai y~ ~t~ FOR Proposal 2. Proposal 3 EMPLOYEE BENEFIT PROGRAM It1 the c~urse of its centintrlng revlel~ of the Company's empI~y¢¢ benefit program, andi in the llg~t of the experience of other emp[oycr% the Board of Director~ recently drtcrmlnedi to rccon3mend t~ the stockholders; (a) Adopti~ ef a Pr~f,l Slqar~ng Plan. Tl~s Plan hos been ~rmulate~, after exten~e re~earch by C~mpany ofiqcer~ with t~e advice of ~o~an~¢l and ~pec~al~sts in th~s lleld~ to lprov~de the maxlmtma ~ncent~ve

to employees at the lowest cost to the Company. One feature of the Plan is that one-third o3 thc Complmy's annual eontrihudon arzd one-third (or, ~f he so elects, all) of each employee's wfef~tary deposit w~ll he inveslcd in Common Stock of the Corrlpany purchased on the open market. lb) Amendment ~t Articre X[I of the 3y-Laws. Article XII provides for incentive c~mger~saden lone-half paid currently and one-half deferred)~ based on profits, for the President, not more than two Senior Vice-Presidents and a Blan~ment Group sefected each year from other key ~mployees. The amendment prvvide~ for the rcductinn of the deferred portion of the Article XII c~mpen~aBon of each particlpan~ for any year by the amount of his Profit-Sharing Plaa benefit for such year. The amendment wBl thus avold duplication of deferred benefits for any year under the Plan and Article XII. (¢) Amendment of the Retirement Plan. In order to ~trengthen the incentives of the Profit-Sharing Plan. it is proposed to reduce Betfeem~nt Plan future service benefitz o~ elnployees by deer~:asing the percentage to he applied to earnings in eornptltin5 such benefits. Other changes, designed to lnedelrnize and improve the Retirement Plan, include increaslng past service henefits by relating them to the generally higher wage and salary levels of recent years, changing the percentages used in calcn~aBng such bcnefits and makirLg provision inr funding the cos~ of Plall benefits. These changes are described later in L[tis proxy slntement. The Board of Directors has passed resolutinns (a) declaring advfeabfe in its opinion (i) the mbTtlon of the Profit-Sharing Plan suro~mrized bdow, (if) the amendment of Article XII of the By-Laws of /he Company as summarlzcd b~inw and set forth in Exhibit A, and (iB) the amendment of the present Retirement Plan by convertin5 it into the two separate Plans summarized below, (b) adopting said Plans and amondrnent~ subjcct to favorabfe vote of tim ~loekhclder*, and (c) directing that ~,fid Plans and amendmcnts be submitted ~or action at the Annual ivfeedng of stockholders of the Company. (The two s~parate Retirement Plans, more partfeularly identified below under the heading "Amendeaeat of ReBrement Plan," are B~reinafter reh'rrod to, respectively, a~ the "Revised Retirement PferB' or the "Revised Plan" and the "Golden BcB Retirement Plar~" or the "Golden Belt Plan.") Because in the opinion of the Board of Directors the adoption of the Profit-Sharing Plan, the ~rnendnaent of Article XII m~d the amendment of the Retirement Plan are so Lnterrelated wlth one another that they should be acted on as a single proposal they w~I[ be submitted to the meetln5 as a unit, deslg~aated "Proposal 3." "lilLe vote in favor of Proposal 3 of holder~ of tavo4hird~ in interest of Preferred Stuck and of tree.thirds in interest of Corarr~on Stock present at the meeting and votin5 (each ~otlng as a ela~s) is necessary- for the adoption 6tiereof. The fnter~zal Revenue Serv2ce has ruled that the three Plans will quaBfy under SecBon 401(a) of the Internal Bevenue Code, that the related P~ofit-Sheclng Plan Trust mad Retirement Plan Trust will be exempt from tmxatlon under Section 501(a) of the Code and that contributions t(, the Trns~ by the Company and its participating aOdiates w~/I he dcdnctibfe for i~come tax purposes as provided in the applicable paragraphs of Section 404(a) of the Code. The principal prt~vis~uns of the three Plans are smnraarized beIow trader their respective headings. Copfes of the Plans w~ll be sent to any ~tockbolder npo~ ~-ritte~ request to the Secretary at rite Company's ofl~ee at 150 East 42nd Stre~B New York 17, N,'w Yolk, and copies wili be availabfe at the raeetfitg. Stockholders are referred to the texts of the Plans, and rite smmnarfez below are qualiaed in their entirety by reference to the Pla~s themsel~.es. The purpose and effect of the rccomrnond~d changes in ArBele XII of the By Laws of the Cc~mpany are descriSed bclow under the heading "Amendment of Article XII of the By-Law~"; the text of Aztlcfe XH a~ proBv~d to be amended appears in Exhibit A, PROPOSED PROFIT.SIL~RING PLAI'~ The Board of D~rectors shares the w~delp recogqafeed view that the partfeipatit~n of elr~ployees in annutd profits l~il] help att3:act al~d reta~a competent errlployecs and eot~tBute an ineenti~'e for them to he|p build 5realer Company profit-~. As a further incer~tlve, provfeinu l~as been made to infest one-third of Ble Company s col~trlhutinn in Common Stock of the Company and to adjust the formula for future ~rvicc benefits under the Revised Retirement Plan, r~ak~n5 retlre*nolrt bene~t~ f~r all emp/~yecs dependent to an incre'aslng degree upon the ~uture st~ecess of the (]ompany. Prolit.Sharing Plans have become widely adopted as an e~sentla[ efem~nt of sound eerpo~ate practice an~ wh~I~ome, effective employee relations. The princlple ha~ been recognizt!d and accepted fit the U. ~. Internal Re',enue Code. and thv aunlber of puhlfely owned corporations in Anle~ican industry that have installed such plans runs into the thottsands.

The Board of Directors believes that it is hlghlv desirable and in the best interests of the @~mpany and its stockholdcrs t~ cstahllth tbe Profit-Sharing Plan to hc submilted at tile meeting and summarized below. Tile Board therc~e rccommcnds ils ad%~don. It is a~liclpated that appr~x~mately 1~000 employees, including 21 directors and oflacers of the Company~ will parBclpate ~r the Plan Year beglnni~g January 1. 196{). If Proposal 3 had becn applicable to 1959 earnings, approximately ~3,700 eml~[oyec~~ including 21 dlrectors and ofbeers of the Company. wotxld have partlc~pated in the Plan f~r that year and payments Io the Profit Sharing Plan Trust by tbe Company and its affillates parheipalbl~ in the Plan would ha~e a~aregatnd approxhnately $4,900,000 (equivalent to $2,323.060 after Federal and ~tat¢ taxes based on ~ncome), oE which 3159,000 wQuld ha~c been credited to the a¢coura~ of directors and officers and $4,831,000 wonld Ilav¢ been credi[ed to th~ accounl$ of olher employees. The following tab~c shows |~r 1959, in each case as if Proposal 3 had been applicable to tha~ year~ (a) the amount that would have be~n r:redit~d nnder th~ prop~sed Pr~£t-Sharlng Pla~ to each of tbe dlr¢ctors and oh~cers named in the table undcr the heading "Remuncra6on" in this proxy statement. (5) the amount of the deferred portion of intent{re c~mpensatlon under Article XII ~ each such pcr~on betore reduction by proKt sharing and (c) the amount of his dcfcrrcd compcnsation aftcr rcduction by profi[sharlng; 1959 Deferred Per tiou of 1959profit-Sharlng Plan Credit (/dyp~theticaI/ Orpheus D. Baxalys ................... $ 7~330 Alfred F. B~:wde,~ .................... 6,909 Thomas P. Conners .................. 4,875 John A. Crowe ..................... 15,924 A. Gordon Findlav ................... 6,148 Charles Ganshow .................. 6,326 John G. Hager, Jr .................. 4,669 Virgil D. Hair ...................... 8,372 Pa~l M. Hahn ....................... 22,925 Hiram R. Hanmer .................... 6,974 Haxry L. FIilyard .................... 9,178 A. Le~oy Jansen ..................... 9~75() Ferdinand Mallgraf .................. 6,156 John B. Sparrow .................... ~033 Silas E. Strickland ................... 5,426 George L. Turner .................... 6,585 Robert B. Walker .................... 8,372 George A. Wilkinson ................. 5,434 William B. Young .................... 5,937 rneenti~e Cnmpen~at~on ( HFDotheticaB Before Reduction After Rednctlcm by Profit ~h~r~r~g I~y Profit Skarir~g $ 8,365 $ 1,026 10,0;2 3,163 5,525 750 67,127 51,203 3,331 2,203 9,423 3,097 5,533 884 15,431 7,109 83,909 60,984 10~1~ 3,176 12,596 3,418 17,644 7,894 7,923 1,767 4,687 654 7,986 2,56O 9,711 3,126 15,481 7,109 7,558 2,124 3,990 3~053 Summary o] Profit-Sharing Plan Exhibit B se~s f~r~ the Plan de~nRions ol certain of the capltalized terms in thls ~ummar~ whldl terms are used ber¢in in thelr deSned meanings. The word "C~mpany" is defined ~n the Plan to mean The Amerlcan Tobacco Company and ~ertaln af~liated ¢orporali~n~, buL i~ u~ed in 611s ~ummary as throughou~ thls proxy ~atem~t to mean The Amer~an ToLac¢~ Company alon~. E~ective Date. 33~e Plan will become effective as of January I, 1060. 8

Partirqpntlng Companies, The C~mpany and two of its ~uhzid~aries, I'hc Hatheway.Stcane C~rlg~ral[on and Cuban T~l~:lc:~ C~BIIpa~ly Inc., arc thc only p~trlicipatin~s compat~ie.~ named in Ihc Plan. Any o~her alIillatc o~ the Company ~l~.ibillt~ AII regular furl.tlme En~ployee~ o~ any participating e~mp~l~ having one ca]eIldar year o~ continuous s~r~ice ~ln the Effective Date or any January l thereafter ~vil] becon~e ir~embers ~f the ]?1an. Part.tllne E~p[oyee~ ma~ be im2hlded ~f ~nd to the extent that the Commiltee ~ pr~vide~, ~ill together contriLate ~or each Plan Year ~ ~um equal tv the followln~ pcrccntag~s of Nct Incom~ Before T~xes ~or such ycar: 3~/~% ~f the first $]0i)~000,000, plu~ 5 % o~ the next $50,000,0~30, phls 6 % o~ an)" excess. No col~trlbu~ion will ]~e ~ade ~r any Plan Year (i) ~or w~ch ~et Inco~a~e Before Ta×e~ ~all x~t ha~'e ertl~lcd or exceeded 12% ~ Net Worth for such year, (ii) in whlf~h ~ ea~h d~v~dend ~ha]l aot have ~een pa~d ,~n the Common Stock o~ the Company o~ /iii) in excess o~ the amount deductil~le ~or such year ~or Federal inaorne t~x purposes. Under pre~en~ l~w the ~mount so dcductlble c~n~ot exceed 15~ of the compe~a~-athon for the year of MI Plan member~ (except to 1~ extent that t~ontrib~tions for prier year~ nlay h~ve ]~ssn le~ th~n the 15~ limit) and~ in ~y event, under the contemplated pro~ralo for lun~tJng the Revi~ed l~¢~rerfient Plan lhe total amo~r~t deductibIe for c~tributlo~ ~nder the l~rof~t-Sharing ~la~ ~nd the ~svlsed Retirement Plan m~y no~ exceed ~5% of the compensation ~r such year of all Employees to whom bolh Plans ars applicable. 171nedly, the c~ntribution for any Plan Y~ar will b~ reduced to th~ extent necessary to prever~t tke sum of th~ s}~are thereof ~I/portloned to an Elrll~IOy~e~ plu~ r~apport~ned for~eiLur~s (d~ribed below) erec~itab]c to him, from exceeding, the ~um ~f 9~,~% o~ hi~ com,oensa. tlor~ in ~xcess of ~,800 and an adr~ition~l percellt~e o~ In~ total e~mpens~atlo~ repre~er~tln~ Ihe con~ri~ut~or~ ~or that y~ar ~ith re-~pect t~ the e~mpcn~atio~ o~ all Employees not in exce~ of $4~8~0. AltI~ugh it i~ the intentlor~ to make c~ntrlbutlons in accordance wi~h the ~ore~olng f~rmula, th~ Company, by action ~f the Board of Director's, ~a~y in il~ ~o[e discretion d~nt~nue, ~u~pend or reduce such eo~tl'ibution~. Th~ Plan may no~ be amended to ~ncre~e t]l~ ~rnoun~ o~ such cont~Lutlons, however, without th~ aplJrc, v~l o~ the stock holders ~f the C~mp~ay. The ccrt~flcalion of the Col~apany'~ independent puLIic ~ccountant~ ~ to the amount ~f the col~trlbntion for ~y Pl~rt Year ~hal~ be t:onelusi~e on the p~trt~cipat~ng eorap~nle~, tile Commlttee~ th~ Trustee, all l~er~ber~ ~nd ~ormer tr~ember~ ~nd all p~rsoRs claiming thr~lu~h a laa~mber or ~orraer l~eml~er, Apporl~n~en! oI Cont~ib~lt~on~. E~taployer contributlou~ will be aUoc~ted betwee~ t~Tu it~estmer~t funds, to I~e called, respectively, the Amerlc~n St~ck Fund (Common S~ck ~f ~he Compa~Jy purchased oa the op~ii market) and the Diversified Fund (secu~itie~ and other property -*elected by the Trustee). Oae-thircl o~ Ihe eontrlb~ion ~or e~h Plan Year wifl b~ ~loc~ted to ~he Athletic:an S~ek Fund m~d tw~-thlrd-~ to the D~versifie~I Fund, E~cla allocation wiII ~or the Plan Year ]3ear to the Adjusted Earnings o~ al~ melnbers for that year P/zn b~nefits ~re ~tegrated w~th ~iaI security l~aefits mad in e~nnectlon therewith Un~dj~asted Ea~nln~,~ in exce~s of $~,80~3 ~re weigI~tsd 51)~, a~ will be noted tr~m the clel~n~tio~ of Adiustect Earnlng.~ ~n Exhlbi~ I3 Each ]rtember will ha~ t~o act~ounts, a Withdrawal Account ~nd ~ General Accouilt. O~ the un~ apportioned to him each year, th~e ~i~ be er~d,~ted, t~ h~ V~th~:l~a~al Ae~u~ ~ne.hat~ ~f th~ 13~*~,ed ~'u~ UI~ a~tri~le to his Adjusted E~rning~ ~ot in exce~ o~ $~,800, ~nd there will be credit~cl to hi~ (~er~eral Aceouxat the balance ~ the Diversified Fund L'nit~ ~lt~ aIl the America~ Stock Fund Unit~. W/~thdra~l Accounts. In ~ny yeax afler three conseeut~w ye~r~ of InemI~cr~hlp a menlber may elecl to rn~kc one withdrawal i~a an amount not less than $10(3 f~om the portioa ~ hi~ WJdac~rawM Account represented by ualts credited thereto prior to ~le two-year period preceding the start ~ the th~n current Pl~rl Year. Ten p~r cenl of the amount requested in a wlthdr~wal notice will b~ forfelted ~ild r~apporti~cc[ arnon~ ai~ members. Izl ~ddition, the w~thdr~wir~g memb~r'~ unit~ for any Plan Ys~r in which he m~kes a withdraw~[ wil~ be allocated entirely to lfi~ General Account (from which ~o withdra~a]~ may be madei.

Distributfon o] Benefits. Upon the deado rt~tlrement or Disability of a member, the Credit BaLances in ]de Withdrawal .uld ~;eneral ~t, ccounts lle¢omd! distrlbutabI~ in ftdI to him o1' h~s berlcfi~iary, fipn ~Lher termination of emlth~ymcnt (~xcel~ by Discharge for Causei there wilI be distribuled 1o the mern/3er (i) Ib~ porEion ~f h~s Withdrawal Acc~ullt then subject to ~itl~rawal plus (ili the percentage ~l Lhe r~t of that Account atld of the Credit Balance ~ll h~ General Account equal to 10% thereof for eacl~ year ~f the member's contlnuous service in excess of thlt~ and less than thirteell and 100% in tke ease o~ thlrleen or mo~e years~ ~ervlee. Any Credit B~latlce that does not become ~ d~stLibutable will be ~or~eltcd and re~ppor[ioned among all members. Dislrlbudon of the distributable hel~nee will be elTected by ~uch methods of ~ettlement as tim Cv mrnittee detem~dnes, foc]udlng ~ithout limltati~ ~i) a ~ing;le distribution of all ~haxes of Commoa Stvck o~ the Coml~any and of the cask value of al~ other as~:ts~ ~i~) a single distrlbat[on ~n c~th~ {ill} d~tr~bu~ion ~n peri~dle cash instalheca~, and (iv) purc]lase~ of ~n annuity o3ntraet~ E~tploy~ l)epos~t~. Any member may eight to make deposits of h~-~ own ~unds by payroll deduction in amo*ants aaot ~ess than $2 per week and ~ot rn~re Lhen I~% ~f kis Ba~e Pay Onethird (~r, if the member s~ elects, alii of each such deposit w~ll bc inwsted through the American Stock Fund iT~ flommon Stock of the Conapany purchased ~n the ~pe~ mar~; ~ny ~J~nc~ ~f ~e ~ep~i~ ~JJ }~ adde~ 1~ the Di~vr~ified ]~m3d a~d J~c-~t~d im secur~th~ ~d other property ~ele~d by the Trustee. The u~it~ representing a n~emher~s depos~L~ w~lI ~3e held for ~dm ia a separate a~eou~th ~here they will be availabl~ for w~thdea~al by him ~ubjeet lo limitations provided ha ~e Plan. The making of sucll deposits is entirely voluntary and participation in Company eonlribut~n~ under the Plan is in no way dependent thereon. ztdmln~l~atlon. G~neral admlni~trat~on of the Profi~Sh~ring Plan aud respoa~th~ity for carrying out ~t~ pro- vlsio~s ar~ placed in a Profit-~b~rlng Pla~ C~mmittee aplzoinl~d by the B~ard of IDire~tor~ to serve at its plea~uze. The Cc~mrai~tee is directed to determine any qu~t~o~ arising out v~ or in con~cetion with the ~J~ovis~on~ ote this Plan not required l~y the Plan to be doterm{ned by the I]oard of D~rcet~t'~ or ind~jJ~tdellt pubilc aceountants~ and the Commfttee'~ determlnati~n o~ ar~y such ~t~estlon ~hal~ be conclusive. Members of the Committee ~rc absolved from sa~d indearm~.ed by the participating companiez agahast liability for thefr admlnislr~ion ~f the Plan except ~or the eQnzequences of their ~*a~ willful nfiseondttct. Whenever the Board ~f D~rector~ or the C~mm~ttcc ~s requlred or permitted by dae Plan to take action with r~l~,t to eff~dbility or cIassi~cation of Eml31~yees, e~ntrlbutlons or behest-% -~ue~ action must be u~iform i~ ~ablrc a~ applied t~ all person~ similarly ~[tuated ant] no such action may be ~a~en which, d~scrlrai~ate~ in favour ~f Ell~]oyees who are off~¢e~, shareb.o]ders, persons w~tose pria~ipal dn~ie~ e~nsi~t in supervlsin~ the work o~ ~tber Et~l~yee~ ¢:r hig~y compensated Enaployees. Trttst Ftt~td. All the asset~ of the Plan are to be held a~ ~ trust fimd~ consLiluthlg the Y~ofi~Sha~ing Plan Trust, thr use in accordance with the provis[or~s of the Plan. One portion, the A~rican Stock Fund, wilI be invested solely ha Common Stock o~ the Company purehe~cd on the open mark~l. The other, the Diversi~ed Fund. will be invested ha securities amd other pro~gerty as the Trustee ~n it~ sole d~scretlon may select, except that the 'l~ruste~ may not invest ~ any ~ee~rlt~ of a corp~r~rT in a bas~ess compet~th~e w~th a~y pr~clp~l basi~ies~ ~ ~he C~mpany and e.:~ept that (under th~ eonlemplated trust agreement) it may no~ ~nvest in or r~ala ally equity security ~f the Diversified F,and w~luld then hold more than 4,~.~% of the entire out~Lallding issue o~ such security. The Trustee shall be a bank or ~ru~t ¢c:mpany appointecl, and zubjeet to removal, by t]~e Boar~ o~ Director~. Benefit~ are paya]31e solely from the trust ~ut~d~ and r~o p~rtlc[palil~ company is l~able therefor. Paymet~ oJ Admlni~trat~n Cosls. It is the ~nte~ltion ~f the partlc~pat~ng companies to pay the costs of ad- rnha~sterln~ the Plan fo~ their general [und~ ~o t}~a~ ~uek eostt~ wi]l not be a charge up~ the assets ~f t~e Plan. The Plan provide~ however~ that it may be amended to permi~ payment of Pla~ expenses frum ~ueh a~sets and. al~o that such a~selA ma~ be ~pplied to t]~ payment of ex~et~ses in the even~ of t~rmlnat~n o~ the ]?]an. ¢Itttendm~nt or T~rtttlttttt~on. The right is ~e*~erved, throu~l action o~ the Board o~ D~reetors, to terminate the ~lan at an~ tlme ¢~r amend or ~odifv it~ in whole or in pa~'~ at any time or ~rom time to t~me~ ~rovided that no amendment that would increase the amoul~ o~ contributions by part~cilgatil~, c~mpanie~ or that alter~ the alienation 10

of benefits ntlder the Plan as between (if dlrcctors and officers and if) otber Employees may be made Mthout the a[iDrOVa[ ~l the steikhl~h[ers of file Compan}: pr~/ihletl al~l thdl no nn~ll~ffiali~n (/r alnen(]ml~nt may he m~qde thai wnuld deprive any person, without his cen~nb of any Plan benefits to wffi~b he would othcr~risc b~ cntl~lcd by reason of assets hehf h~r hls account at the Bmc, and provided further that no modlffeaLion or amendmcnl ~hall makc it possible for any part o{ the Profit Sharing Plan Trust to be used for, ~r diverLed to, purposes otlmr tban the exelnslre benefit of nlemhers or refiner m~rtlbers a[Ld [he beueBelarie~ or estate of lnenlher$ or former lnenlb~[~ and payment of expenses of the Plan. Notwlthslandlng these reslrictions, however, any modiffcatlon or amendment may be made, retroactively if necessary, that the Board of Directors deems necessary or appropriate in order to comply with any applicable s~atute or regulation, fu the event o~ termlnaLion the Credlt BaImaees ha members' accounts (after pa~ meat of expense~) become distributable to them in full. AMENDMENT OF ARTICLE XII OF THE BY.LA~S Article XII of the By-Laws of the Company in its original form was adopted by the stockholders on March 13, ]912. It has. as amcnded from tiale to finis, been earryin¢ out its tradifional purpose of furnisBing incentive com- pensatlon he key employees fol ahnost 4~q years. In 1957, on tbe recommendation of the 5Ianagement, it was amended to extend, ~ithuut additional cost Lo the Company, the benefits of ineentlve compensation, theretofore provided only for the President and Vice Presidents, to a broader Maz~agement Group alld to provide more reatlstlc fncentB'es than those theretofore offered. ArBcfe XI[ now provides that one-half of the amomlt allotted to each participant thereunder shall bc pa{d to him in cash as seem as practicable after affoLment and thai tbe other one half sba[1 be contingently payable to him in ten equal annual instalhuents during the ten years following the clo~ of the year in which his employment by the Company terminates. If Proposal 3 is adopted, ffi~eez~ and other employees to whom allomaents are made under Article Nil wffl be eligible to participate in the Profit-Sharing Plan also. The Board of Directors ae(ordingly recommends that, concurrently with the adoption of the Profit-Sharing Plan~ Article XII he amended to provide that the deferred porfion of a partidpant's incentive compensation fur any year under Article XII ~hail be reduced by the amount credited to such participant for the same year lander the Profit- Sharing Plan. Th~ total amount of the deferred contingent portion of haeentlve (ompensaSon under Article XII allotted fvr 1959 was $392,978, of ~hicfi 8337,831 was allotted to 20 employees who ~gere officers and directors in 1959 and ff55,147 to I5 employees not directors or officers. If Proposal ff had been applicable lo 1939 earnings, thee allotu~ents ~+onfd have been reduced to $170,289, $166,987, and 83,302, rcspceti~cly. The amendment would not have changed the nnmber of persons to whom allotment~ were made The amount of the deferred contingent portion of incentive compensation under Article XfI abetted for 19,~9 to each of the directors and officers named in the table under the heading "Remuneration" in this proxy statement is shown in the paragraph ~ollowlng that table. The textual changes necessary tc~ effect the praposed amendment of Article XI[ arc set forth in Exhibit A, Ai~IEND)IENT OF RETIREMENT PLAN The present Retirement Plan wins approved by the s~ockhoIders at their Annum Mecl{ng held on April 6, 1949 Since its inception the Plan has been main[slued ~itl~out funding, [bat is. benefits have been paid from current earnings on a "pay-as-you-go" basis. The Board of Directors behoves that provision should now be made ~or funding benefiN by the p~yment {ate a trust Brad, over a pcr~od of years, of tile cost of accumulated benefits attributable to past service and the paymenl into the same trust fnnd, from year to year as current service i$ rendered, of the cost of benefits attributable to such current service, and fur quali£catlon under So<lien 401(a) of fits Internal Revenue Code, Because of the benefits which it is anticipated will fie provided in the furore by the proposed Profit-Sharing Plan, the Board of Directors also bcBevcs that the present Retirement Plan thould he changed, in so far an participants in the Profil-ffharing Plan are concerned, bs decreasing Retirement Plan benefits for future service (i,e., service slier January 1, 1960). At the same fime tim Board believes tbat Retirement Plan benefits ~or past service should Be ~fianged so as (1) to base such benefits on the employee's service prior to January 1, 196~) (hasleatl of prior to ll

January 1, 19L9) and on his average pay for the bve-!ear period ended December 31, 1959 l in~tead of ~m thu rate of pay in eilcct at Jammry 1, 1919} and ~ili to inte3raLe such benefils ~viLh social ~eculity heuefits. These latter changes will ~encraliy result iLt larger benefits for past serfficc for praclieally all covered cmpfeyces who relire after January 1~ ]960. The Board further beIfeves theL (i) the numher of years of service rcqnircd to qualify [or disability benefits should be increased from 12 [u 20, (if) adiu~-Unent~ thould be made iu the percentage formula u~ed i. calculating benefits and the present deduction from Redremenl Plan benefits o1 one-hail the primary social .¢-ecurity henebt ~hoalcl be eliminatecl (iii) the maximum number of years of credited service shaald be increased from 25 to 35 with respect to earnings of $5,000 or Ices per annum, (iv) the maximum benefit payable should be increased and (e) certain groups of seasonal employees should be covered. Empfeyees of Golden Belt Manufacluring Company, a wholIy-o~'ned subsidiary of the Company, will not be cligibfe to participate in the Pro~t Sharing Plan. With respect to those employees the Board helleves that the existing Retirement Plan should he relained. The Board t~f Direetc:rs therefore recommends, in the hest intcrcsts of the Company~ that the present l~etirement Plan be amended by converting it into the two ~arate Plan~ being submitted to the stoekhelders aL this meeth~. One o1 these, called the "Ptetirement Plan for Employee~ and Former Empioyees of The American Tobacco Company and Designated Affiliated Corporations" (referred ~ in this proxy statement as the "Revised Retirement Plaff'), incorporates the major revisions to lhe pre~nt Plan referred to above and is applicable to employees of the Company and c~:rtaln designated ~ubsaliarles. The other, called the "Relirement Plan of The American Tobacco Company f~r Employees and Former Employees of Golde~ ]3oh Manufacturing Cnmpanv'~ (referred to in this proxy statement a~ the "Golclen Belt Rctlremem Plan"}, i~ substantially the ~ame as lhe pre~nt Plan hut is applicable only to employees o~ Golden Beh Ma.ufactur~ng Company. Both Plans ]provide ~or ~unding and include other provlsion~ necessary to pcrmk of qualifica- tion under Section 401(@ of the Internal [~evenuc Code. fl 15 antfeipaled that approximately 1%900 employees, including 21 directors and officers o1 the Company, will be covered by ~he PIans as of Januaiy 1, 1960. Approximately 1,200 former employees who retired prior to January l, 1960 also will be entered. The benefits of these former employees will continue |o he covered by the present Plan. No amount was ~et aside or accrued during 1959 for ltenefil~ pa'/ahle in the future under Ihe presenL Retirement Plan. Benefits pa~d daring that )ear under the existing Plan to retired empfeyee~ and ~elr beneficiaries aggregated $1.194,140. It is estimated by the Company's independent actuary that if the pre~ent Plan were continued unchenged the aggregate ameunt o~ benefits payable during 1960 would be approximately $1,300,000. It i~ the present intention o~ the C~mpany and the affdiated corporations expected 'to participate in the Ftevi~ed Retirement Plan and the Golden Bc[t Retirement Plan to ~und by paying currently into the RetfeemenI Pla~ Trust mentioned 5clew the cost of benefits under these Plans attr~butabIe to service after .January 1, 1960 and by paying over a 50-year period the total cost of benefits under thes~ Plans and the preserd Plan attri]gutahie to service prior to that dale. Such past ~erviec co~ i~ estimated by the actuary to be $33.050,000 {or active employees to hc covered by the Revised Plan, $600,000 I~r active empl~ycc~ to he covered by the Gulden Beh Pian~ and $10,850,000 for former employees who ~etired under tile present Plan, The annual cost to the Company and it~ al~illates of such funding under cnrrcnt conditions is estimated to he as follows: Annual paymen[ ~v~th respect to ~rvfee prior to January 1, 1960 ...... Annua~ paymet)t with respect to service on and after Jan~aary 1, 1960.. Total ............................................. After Deducting Actaar y'~ Taxe~ (al Current Esdmale rtales ) as Estimated Before Taxes by Comg0 r~y S2,071,500 $ 96t,300 2,980.000 1,3~U,300 $5,051,500 $2~351.600 The Company has the right to contribute greater or lesser amounts annually than the amounts thown al)ove, Y~nnen payment with respect to aervi~e prior to January 1, ] 960 i~ compXeted, the annual e~t will hc rcduccd accor dlngiy. 12

It is e.~dmated that under Lhe Revls~×] Pran the annual retirement berlefiLs at Normal Rctftement Dale o[ die ofi%er~ and dilec'tovs natued fu lhe table linder the he~dill~ "Rcmuneratlon" in this proxy .-[atemsnt wetlld lie as folh~ws: Orplu:~Js D. Baxalys $16.836{a) Harry L. Hilyard $11,174(a) Alfred F. II~wden 2L706 A. LcRoy JarLsoa 23,856 Thoma~ P. Connor~ 17,090 Ferdinand Mnllgraf 12,712(a) John A. Crowe 26.4~7(~) John B. Sparrow I1.I22 A. Gordian Findlay 19,016 Sil~s E. Strickland 16~957 Charles Ganshow 21,315 Gcor~ L Turner 17,454 John G. Ha~cr, Jr. 15,210 l%bert B. Walker 22,669 V~r~i~ ~3. H'a~I 22,~3 George A. x3/i~ki~s~ 13,79~. Paul M, Hahn 23,438(~) William B. ~oung 17,249 Hiram H. Hanmer 20,545(~) (a) Reflects actuarial reduction resulting from his e]ectlon under exls:ing Plan Jwhich will become irrevocable upoeJ e~mmerwe~ oi b~a~t ~mer~t~/ t~ take a r~xluc~d pe~s~ ~h[~ t~ klmsel[ fn~ I[l~ and. to ~ ]~enef~ar~ ~ 11(¢, i~ ~]~e beneficiary slxr~i~es him. D2pending upon ~tctuarlal calculadon~ the annual penslua paymellts to four of dl~ indlvidnaI~ indicated as ha~ing rdade ~ch election and ~o t~eir beaefi0iar~es r~nee ~rom 59~ to 74% of the allnnal bcnefit~ sn~h indiv~du,xls wo~ld have been 0ndt!ed ~o i[ they had not elected erich vedaeed pen*ions. The p~nsfoll paytlxeats listed ~n the t~bl~ fo~ the t~ remainh~g ~ftdi~dual~ are ~o ~nd ~8% tff lhe ,amounts ~hey wonId ]law broil eadtXed lo, and their surviving bene~ciarles will receive a~nual wym~nt~ of 41~c~ and 44% of such amounts, respectively. The paragrttphs that ~¢~I¢~x- sunmtvMze the n~aterlal, ieatttrcs o[ both P~a~xs and. fudicote the ptitxcipal ways fu wltiJl they differ from the pr~ent Retirement Plan, As stated abo~c~ these summaries arc q~a[i~ed in tl~clr entirety by rviercnce to the Plans themselves. Snmraary o/Revised Retirement Pleat Exld.bit C sets forth the Finn definitions o£ certain of the capitalized t~cms in this summary, whk]l terms are nsed herein in their defined nle~l~n~s. The word "Compar~y," howe~er, defined in the Plan t~ mean The Americal~ Tobacco Company and certain a~fiatcd and predecessor corporations, ~s u~ed in thi~ ~urozn~ry to mean The American Tobacco Company alone. E~eetive Da~e. The Revised ~etirement Plan wi~i become ¢l~ective as o~ January 1, 1960. That date is here~naIter ealJcd the Revision Hate, ~IYplic~billty. The Revised Retirement Plan wl]I govern~ from and after the Revision Date, rctlremenh s~vernno~ and dlsab fiity bezmfits of present and future Employees of the C~rnpany and two of its subsidiaries, The }Iatheway-St cane Carp~ra~ and Cuh~a Toha~c C~mpany Inc. The Revival P~au 1nay h~ ~x~ndxd ~ a~y c~fuer a~ed ¢~rpo~at~ by a~tion of its board of directors and ~s Board of D~rectors of the Company. The present Plan~ funded as re~erred to above, will continue to govern the el~rrcspondlng benefits of all {ormer F~,~lp]oyees who, ]prior to the Revisfun Date. qualified for the payment of ~uch benefiL~ ~i~her presently ~r fu the future; the Company will not, howol'er, make any further adjustrn~nts in the benefits o~ such ~ormer Employees by reason of any fuereases in their seelal security benefits resulting from amendments ~o the Social Security Act becoming ~tiect~'e a~tcr the Revision Da~. Partic~p~tfutt. Under tile l~evlscd Plan, as under the preaent Plan~ all regular fufi.tlme Emp]oy¢~s~ ~her on a salaried heurly-rated or plecewerk basis, can l~ecome eligible for benefits. The Hevlsed Plan, how¢~er, also prevides fnr parlirlpat~on~ to the extent described beiolv, by seas~mal Employees in the Company's Kentncky~ ]North Carol fun and ¥1rg~nla redrying plants and stemmcries where ci~arelle and smoking tobaceo~ ar~ handled, and. auth~rlzes the Board of Directers ~o include part dmc Employees. R~tlrement Dotes. Under the Revised Plan~ as under the present Plan, retirement is automatic at ~qermaI ]Retire ment Date (end of month in w~ich 65th birthday occurs) unles~ deferred by the Er~ployee with the approval of the "B~a~d ~f Directors. &~ Empi~ wi~h ~2 ~e~s ~[ Sc~;,~e may at Ms ~t~xx ~eti~ at any fi~e ~hk'~a th~ ~t~lyear 13

peri()d (thsiead of th~ f'lve-ycar perle(1 o[ tlic pr~scut Plant precedlng hls N~)rmal Retirement Date: in such ease, th~ I!nlp[ovc~ may cl~:t to lecei~e retlreLllel/t benefits begiEm~Eig either at ~rlual I~ctirCL/l~lLt Dale (/[ at Acl~al PLelircmcllt Dale /fo whlcL~ ~altl.r evcnl the ]9crlc5~ are reduced ~el a~l ocluar~al ba~i~.i. l~]dcr the Re~i~ed Plan. an Er~lp[oyee may elect to retlrc, w~thout ad~atial redu~:tlon of benei]t~, al any tlnie after a~o 60 i~ be has had 15 year~ of con~inuou~ foreign ~ervice e~dlng within live years prior to makln~ the alection (insiead of immeciiate]y prior thereto, as th the present Plan). Retlr~ment IJel~efits. Under the Revi~d Plan, as under the present Plan, an Employee ~o has 12 Years o~ Service immediatal~ prior to his Normal Retirement Date or Actual l~eReement Date, whichever is earlier, is eligible for retirement licnefits. U~d~r lhe Revi~ed Plan, such benefits are a pe~sio~ for llfc payable monthly at ~n a~nua[ rate equal to the ~mn of a ]~eneliL based (~n the Employ~'s Past bl,rvlee (that i~, Service prior ~o the Revision Date) ~nd a benet~t based on his Futur~ Service (that is, Service after th~ Fl~vi~(~n Da~). Th~ P~l Service benefit i~ equal to (i) the sum of ;~ of ~ ~,~ of the Emph)? ee'~ Average Annual Actual Earnthgs not in exce~s of $4.300 ia the peJ i~d fE(~m Jan uar~ 1,1955 t~3 December 31, 1959 ~nd 1½% of ~uch Ear~ill~ in ~e~ ~ ~,300 muhlpiicd by (li) th8 number of his Years of Pasl ~ervlce within the 35 years pr~cecling his ]Normal ~hltirement Date ~r Actual Retiienle~lt Date, whic]~ever i~ ea~'licr. The F~ture Service heneft~ i~ equal ~o 1% o~ the Employee's Actual Earnil~g~ du~ing each Year of F~ture ~ervice within the 35 years precedlng such date. F~r purpo~ of comparison of the retirement b~efi~ formulas o~: the Revised Plan and the prcscnt Pia~, reference raay be made L~ the section of lh~s proxy slaternen~ captioned "]4ctiremcnt Bcncths" in the ~ummary bcicw of the Golden Belt Retirement PIan, which Plan incori)orates the retirement henefit formula of the present Plan. The general nature o~ the ¢ha~s in the r~irement benefit formula ~s i~dic~ted in the see~nJ and thlr(t paragraphs under" the heading "Amenth~e~t of R~t~r~ment l~lan'' above in thi~ proxy statement. Severance Benefils. Under the RevLced Plan, as under the present Plan, ~n Employee i~ eligible for ~everanc~ benefits wli~ is at l~ast 50 yea~s o~ age and who has ha~/ 20 Years of Service immedla~ely prior to the time his em~oy- ment is te~mluated for any reaso~ except conduct co~st~t~atla~ in the jud~n~nt of the Retiremen~ P~an Colnndttee, eti~henestv, insuborr~ination or willful des~-uetion of or damage to the property or busine~ ot the Company. Under both Plans, ~everance benelit~ are a pension for llfe payable monthly at a~t annual rate determined ~ the ~ame manner as are ~ti~iImnt b~lellt~ excep~ that Ye,~'8 of Se~¥ic~ ar~ [2Qmptlted to* date o~ sevel'ance in~ea~ el* ~o N~3rmal ~etic¢. me~l~ Date or Actual Iletirement DaCe and include ~nI~ Service after age 30. Such benefits begin ,it ~X~r~r~al Retlrerae~t Dat~ or~ ~ubject to actuarial ~educRen and with the co~sent o~ tke Committee, at any time within the preceding ~ve yeal~. Fo~ purposes c*~[ ¢ornpar~so~ of the ~¢verance henelit formulas of the ~vi~cl Plan and the present Plan, reference may he made to the section of thl~ proxy statement ca]~ti~ned '~Retirement Benefits" in the ~ummary below of the Golcle~ Belt Retirement PIan, the eben~ i~ the ~e~-erance benefit formula bein~ comparable to the corresponding ch31~ge~ in the reticemen~ ber~efit formula. The general nature ~f these changes is indicated in the ~oild and third para~aphe under tile heading "Amenclrnent o~ Retirement Pla~l" above in this proxy statement. l)/sab~ty B~efits. Under the Revi~cd Plan, as u~der the present Plan~ an Emp]oyee i~ eligible for di~abiliLy ~ver~efits who a~ the time of (li~abillty i~ ~ot ~n an absence ~itbeut pay (other th~n sick leave) or, ~nder ~he Revised Flazl, a layoff, which has lasted over *Ax I~onths. a~d whc~ ha~ the requlred ~ears of Service ~mmedia~ly prior to ¢lisahllity. The Revi~ed Pla~ i~creases the required number ~)f Years o~ Service from 12 to 20 and o, hangcs the dls~bllity prerequisite from '~perma~ently dls~hled ~rom contlnu~ng ~rnploymcn~' to ~*perma~ent]y dlsahlecl from continuing ~n h~ ernployraent wkh the [employing] Company." ~l~er the i)resent Plan, d~sabtiity J3eneflt$ are a pens~o~ for li~c payable monthly at aTi annual rale determined h~ the ~arae manner as are retiremcnl ]~encfi~, except that !~) ¥eara of ~ervlce are computed t~ date of di~hl[~y instead o~ to Normal Reti~emeul DaLe or A~tual Retiremen~ Dat~ anc~ (il) appropriate ~djust~llent~ are made ~r the ~oclal ~ecur~ty dectuetlou to rehl~e it prior to a~ 65 t~ ~ocial security d~sab~l~ty bene~[s. The Revised Plan, in order to secure a q~alilieation ruli~g at this tlm~ from the Internal Revenue ~ervice, provides ~or Fa~t Service dlsablli~y benelits equal to ~ of J.% of an Employee's Avcragc Annual Ac~lal Earnings beth alio~re and below 84,8('~, as compared with 14

ret[rement hencfits which are increased to 11~% oa all such Earnings in exce~s of $1.800. Accordingly, the ComlJany proposes to pay. ou~slde the Plan, an ad~litlorla/ [~a~L Servlee di~sbliity allowance equal to ~ of 1% of Averag~ Actual ?ulElunl ['~,lrrllr~'s in cxcc-~s o[ '~4.~00. to tnahltain unchanE~d the l~lati(~zl~hip ht'tw~'~'r~ di~a[~iIitv ll:t!rr~cn~s al/d Tcthe merit I/~Lnefits Tha actuary has estimated LhaL the cost of ~ucla a~lowance-~ ~ut--,hl~ ~he PlaT1 wil[ build ulJ at the rate o~ il[~rtJx~le~y ~5~0D0 t~ $6~000 per year to an annual maximul~a of approximately $50.000. S~ftsona| S51r~ployees. Under the Revle~cl ]?Jan. but noL imcler the present ]P]an~ seasonal Elnplo~'ees Jn the Com. pany's Kentucky~ North Carolina and Virginia ~d~yiag plant~ and stemmer~es where c~garette and smoking tohecc~ are handled may ¢llzali~y for reI~ret~lent beaefits, ~ea~o~al employlt~enL, howe~er~ dc~e~ not mak~ tan Eanployee eIi~thle for ~everance or disability benefits. Ar~ EmpIoyee i~ ~a~on~l ~mploymenL ~t o~e of the speei~qed [ocatlon~ receive~ crew/it ~or ~ueh el~aploymen~ i~ ~n or after January 1, 1949 he has bee. a r~gular ~ul[-t~rae EmpIoyc~ or i~ he hes worked ~or at ]ea~t ten ~ull "~ceks ( ~neluclin~ approved absences w~thou~ pay) in e~ch o[ thr~e conseeutlve Seasons. In either case, hie col~t~au~Jt~s Service ~inc~ J~ntiary l~ 1949~ inalud~ng the first six ~o~hs of approved ah~enee~ or layoffs, clcterm~nes his el~gihiliLy for retirement benefits. In the detelrrJ~nation of the anaount o[ his Pasl ~ervlce h~nefits, a seasonal Employee ~ credited ~i~h olle Year of ~ervlee ~r ~aeh calendar year in any part o~ which he is ill ~ea~onal ~mployment. A quallf~ed ~easonal E~ploy~ whe at the time o~ becotn~n~ a seasonal Employee wa~ or is eligible for ~e~erance hene{]~s by reason o:[ paler Service ae a regular ~[u][-~me ]~rnl~lo~ee eontinue~ to be eIi~b[~ for ~uch beneftts. Su~'h ~evex'a~ee benefits are in add~l~en to aay ~:etlremen~ hene:fit~ thaL the Eln~]oy~.e e~rns ~ seaz,-on~l eroployment, .Tlrtt#~mttm Benefit. I',o benefit under the Revised Plan may exceed $37,500 per ann,re. The corresl)ondin~ li~afta. t~on in the present Plan is $25,000 per ann~m. The Revi~d Plan al~o provides that if it she~lcl he terminated w~th~a te~ yea~s after the ]Revi~n Dale or the effective date of any amendment i~creaelng benefi~ ~ad i£ any benefit then p~yabIe would be ~ contravention o~ U.S. Internal Reve~aae 13ureaa Mimeo~a'apl~ 57Z7 (1944), eac~ ,~uch benefit al~[I be reduced to the largest ~mount permitted under that ruling~ Form oJ Benefit. Tha RevL'ed P/an provide~ additional options for the payn~ent o~ beneftt~ tu Ern~u~oyees a~d their beneficiaries. In each case payments to an Employee a~d hi~ bet~etieiary are to he the actuarlal eqaivalent ~f the benefits otherwise payable to the Employee alone. The Revised Pla~ aleo pe~i~it~ ma ErapJoyee to elect a form cff actuarlall~ equivalent hetteftl provld~ng h~rn w~th a levt~l tht'ozne he,Core and a:~ter the eolnmene~rtlent of ~oci~] ~ecur~ty benefits. Admlnlstr~t~on. Ce~eral athnin~ratlon of the R~v~sed Plar~ and responsibiIity f~r e~rrvlng out ~ts iprovlelons ~ae ~laccd in a Retirement Plan Cor~amlttee appolnled by the Board of/)iroctor$ to serve at its pleas/ire. The Committee is directed 1o dete~nlne any qL~e~tion arlehlg out c~[ or irt (,onneetion w~th the ]provJslor~s ,z~ the P~a~l, and its tleter~ir~atlon shall be conclusive. Under the pre~nt Plan, such questlo~e have been d~termined by a retirement coramitLe~ ~nlv to the extent that power to d~ ~o has been dale~ated to such eomrr~ttee by the I3oarc~ o~ Di~etors. Meathe~s o~ the C~rn. ~ait~e a~e absolved from and inderanified by the partlelpating co~apanle~ a~ainst llabillty for their admhalstr~tlon o~ the Plan except ~or the coaasequenees ~f their ~wn w~ilth/ m~ond~t. Whenever the Co~rmalttee le required or permitted 1)¥ the Pla~l ~ take a~t~n wftl~ respect ~ e]~glh~li~y or el~fi~a. t~or~ of Employees~ eontrth~tiot~s (~r benet~s~ -*ueh action lr.u~t be ur~iteorla in nature as applied to, all persons sh~dla~ly ~tuated ~nd n~ su~:h a~tien ~ay be t~hen w~ieh diserimln~tes in ~avor o~ Err~plo~ who a~ olheers~ shareholders, persons whose princ~paI d~tles co~st i~ ~ape~vls~ the ~rk (ff other Employec~ or h~ghly eompeasa~e8 ~l~pl~yees, Trust Fund. All fo~ds o~ the Revised Plan are to he held. together with a11 funds ~f the Gol6cn BeIt ~.eRe~naent ]P~an, as a tru~L fund, consLiLutlng the ]~et~rement I;lan 1 ~l~t~ for t~e in acet,rdaatce with the provleloxa5 of thes~ Plans. The Tru-~tee shall be a bank o~ tru~L coml)~ny af~p~inted, and subject t~ rem~a/ by, t~e Board of D~¢~ors. Be,~fit~ are payable solely frum the t~ust ~und and no employer i~ liable the~[or. Payment oj zldm~tz~slr~tlo~ ~o~t~. It i~ the ~r~tention c)f the participating coltlpan~es to pay th~ eo~ts uf aclnai~le. tering the Plan ~ro~ their general £und~ ~ tha~ such ~o~lz w~ll s~ot be a charge upon the assets o~ the Plan. The 15

Plen ]lruvh]e:,. fin~elvr. ~hat it Ilia} be alnelnled Ill perndl [i;t!mt~nt oF Plan expenses I~onl $11efi assels and al~o that such assets may be aE~plled to tile pa!ment of expeuae~, in file event of terminatinn of the Plan. ~lntendmettt or TermiItatfon. As in tile present Plan, the right is reserved ffi ffic Revlsccl Ptan, Ihrough action of the B~m~d el Ilhe~tnls to amend, modify or terminate the Plan: in whole or in part aL any time or Irum thne to time, provided that no anlendl~leut m~ be made that matelially increases Lhe carl of the Plan or that alters the a]location of benefits under file Plan as between (i} directors and officers and Ill) uther employees without the approval of file ~tockbeffiers of the Cumpany. The Re~i~d Plea provides {urtfier that no amendment or termination may make it possffile for any part of the [detlrement Plan Trust except such part as may be used for the payrnen~ of expenses) to be used for any propose other than for the exclaslve benefit of Empffiyees ~nd beneficiatde-% prior to the satisfaction of all liabilftics of the Plan for benefits bascd on Scrvlcc thelet~fore rendered. Notwithstanding the foregoing, any moffifieation or amendment may be made, retroactively if necessary, that the Board deems necessary or approprffite in order tt~ C~mlply wiffi any applicable statute or regulation. General. Under the Reviscd Pin,. all benefits may be tet~linat~d with respect to any Employee or beneficiary who, "s'ftbolit the approval of the Committeo. accepts employment in a business competitive with any princlpa[ business of the Compare, A substantlal[v similar provision is cvntalned hi tile present Plan. Under file Revised Plan. a~ under the present Plan. the pension of a retired Employee who returns to Scrviee is suspended for rite new periud of Service. Under both Plans the Company may engage en a relaiiler or tee basis any person receiving benefits and such engagement will not terminate or suspend ffis benellts. Such person may be a director of a participating company but may not b~ engaged as an officer, Each of tile employers may nlake contributions to the Retirement Platx Trust in such amounts as it may determine to be necessary to provide for its Employees, former Employees and their bencficiarffis the benefits to be paid under the Plan, but any employer may for any reason discontinue, suspend, fficrease or reduce any such eontributiong, Under ~he Revised Plan, as under the present Plan, no contributions axe to he made by Employees. Neiffier P[an provides death benefits. The Pisn sball not be construed as preventing an emp[o',er from paying, outside the Plan, addltlollal disability, severance or retirement allowance% or death be~leflts, or loom making t~ther provision in any ease where in /he opinion of the Board special circumstances exist. Sttmmary of Golden Belt Retirement Plan Exhlblt D sets ~rlh the Plan defirdffi~ns of certain ~,f the capitalized terms in this summa~T, ~hich terms are used herein in their defined meanings. The word "Company." defined in the Plan to mean Golden Belt Manufacturing Company, is used in this summary m mean The American Tobacco Company. The Gulden Bch Retirement ~an is e~emis~ ~c same as the present Plan of the Company, changed (i) to llm~t its a~lleatlon to Employees ~ Golden Belt Manufacturing Company and (ii) Io provide for fundffig and to ineffi~ other pro~isions rtece~a~y lu pe~niL its qualificatlo~ under Section 401(a) of ~e InternaI Revenue Code. Except a~ otherwise e~ressly indicated in this summary, the provislons of the Golden Belt Plan summarized below are substantially file same as the eorrespondlng prov~slons of the present Plan. Effective Bate. The Gulden Belt Retirement Plan will become effective as of January 1, 1960. That date is here- inafter called the Amendmer~t [)ate. This ffi a new provision. Applicability. The G~den Belt Plan w~ govern, from and after the Amendment Date, retirement, severance and disabliity benefit~ o~ former, present and tumre Employees ~ Golden Belt Manufacturing Company (hereinafter sometimes re{erred to a~ "Golden ~eh'). From and after the Amendment Date all sucA Employees and their b~eficiarles shall look solely to the Reth~n~n~ Plan Trust provided for in the Plan for the payn~nt of a~ benefits. This is a new provle~un. Part~eipallon. All regular fnll-tlme Employees. wbeflmr on a ~alaried, hourly rated or piseework basis, excludln~ aH seasonal temporary a~d part-til~ Etuple?ees and Em~nyees on a retainer or ~e basis, can become eligible for benefits. I6

Relhieraent Dales. Retirement is autolnaLie at ~(nrmal Retirement Date (end of month in Iritich 65[b hir[}alay o~curs} uiffess deferred by the Empb~yct: wltb the approval of file Board of D~rect~Jrs ?xn Employee with 12 Years ot Scrvlce may ~lt his opffen retlrc ~ ally time wfihia thc five year period preeediag hi~ N0rl~al R~fireme~t Date; in ~ueh ca~e the Etnployee nla~ elect to receive rctir~uent bcneftts bcglnning eltber at Normal lintirelnent Date or at tile tffee of his actual reLirernent (iu which latter e~ent bi~ benefits a~e reduced on an actuarial Basi~). Betirer~3etlt Benp~ta. An Emplo}~c who has ] 2 Yesrs of Service immediate[v prior to his Normal Retirealent Date or actual s'efirement, whichever i.~ earlier, is ellgible for r~drertiellt benefit.". Retirement benefits are a pension ~or life payable raotatbly at an annual rate determined b7 aggregating: (1) 2% o~ that p~tti~n el the Employee's Annual Rate of Compensatlen oft the Effective Date (be., J~nuary 1, 1949) not 5n excess of $5,000 multiplied by Years of Pa~*t Service (i.e., bchire January 1, 1949) within 25 Years pri~r L~ Normal Retirement Date or actual retirement, whichever is earlhir; p]u~ (il) 2% ~f that portion of the Erapl~yee's Actaal Earnings not in excess of $5,000 during each Y~ar of Future Service (i.e., after January 1, 1~9) within 25 Years prior to Normal lhitlr~ment Date or actual retirement, ~bicbe~er is e~ufiel; Plus (ili) 1~% ~f that portion, i~ any, of the Efr/lll~vee's Annual Rate ol Compensation o~ the Effective Date in exce~s of $5,000 mulfiplied by Years of Past Service a~ter age 30; plu~ (iv) 1~/2% of that portion, if any, of the Employee's Actual Earnings in o~eess of $~,000 fferiag each year of Future Service after age 30 and heinre Normal Retirement Date; minus {v) 50% el die prmlary social .*ecurity benefit. In the case of an Employee hahing an Annual Rate of Compensation in cxce~s of $10~000 on the Effecti~re Date, Past ~ervlee eredlts for the amotmt of compensation are computed or~ the awrage ra~ of his eompemsathm over the fi~eyear pcrind 1944 to 1948 inelusive~ or su,~h perfi.n there~ff ~ be may ffeve be~n employed (using a minimum rate of $10~000 per year), ingead of file Annual Rate of Compensatlort oil the Effective Date. Se~erttnce nettefils. An EmpIoyee is eligible for severance bett~fit$ who is at least 50 years e~[ age and who has had 20 Years of Service hilmedlately l~rior to the time hi~ employment i~ terminated fe~ any reason except conduct eonstltutln~ in the judgr~ent of the Board of Directors. dlshones~, ~ixsubordinati~n o~ willful de~tructhin o~ or darmage to the property or bu~n~ el the C~lnpany. Severance benefits are a pension fer life payable monthly at an annual rate detennlned in the same mantaer as are retirement benefits except that the 25~ear period i~ computed to the date of severance instead of Nolna~al Retirement Date c~r actual retirement and includes or*ly ~ear~ o~ Service aiter a~e 30. Such benefits arc payab~ beginning e~ther at the Employee's Normal IletireanenL Date or, il the Board o~ Directors consents~ at any date within five yeazs priur thereto which the Employee may select, in which latter ca~ the benefits are iedtle~cl on an actuarlal 1)a$i$. Disablllty Benefits. An Employee is eligible for disability benefits who has 12 Years of Service immediately prior to disabfiity a~d wife at such time is not on an aheet~ee without pay (other than sick Isave) which had lasted over six rno~tbs. Eligible Empinyee~ who ar~ found by the Board o~ Directors to be, befere ~ormal Retirement Date, permanently disabled Ir~m conlinuing euiplo~tlaent, will co~m,nenee ~eccivln~ disability benefits. Disability benefits are a pel~-qon for life payable monthly at an armual rate determined in the same manner as are retirement benefits, e'i~elpt that (i) Years o~ Service are computed to date of dlsabi]~ty instead of t~ Normal F~etireme~Lt Date or Actual Retire- ment Date and (il) appropriate adjust~nents are made for the ~ciaI secmlty deduction to relate ~t prior to age 65 to social security di~abdlty benefits. .~lax~raltm Beneptt. The maxinlum annual benefit for di~ahifity= retirement, or ~verance is 50% ~f that portion not i~ e~:cess o~ $10,000 o~ the Employee's average A~tual Earnings per anmlm during th~ ]sst five calendar Years of employment plus 30% ~I fitaL portlnn, i[ any~ of such average Actual Earnings i~ exce~s o{ $i0,000, provided that in no event may any ]~enefit exceed $25~000 p~r annum. If the Plan should be terminated within ten years atter the Amendment D~te or the e~ective da~e of any amend- rn~nt increasing benefits and i~ any benefit then payable would be in contravention o~ U.S. Internal Revenue Bureau Mirrte~rapll 5717 (194~), each sach benefit ~hall be recluced to the largest amount penhittcd under that rallng. This is a new provisi~n. I7

Form o/ Ben,'fit. An Employee may designate a benefisinry and e]eet either of the {t*l]~wlng aptions: (i) reduced pen~io~ pa!ab/e to the Emph~yec for li[e and to a designated benehci~lry [~r life if tile l~e~efid~iary surv~v,~s him or (il) reduced pel~iotl pavalqe to the Employee for ~ife with one hall cd the re&wed amomlt payabl~ to a des[gE~ated benJ~daty l~r li~e ~t the berlellda~y ~ar~ive~ hint. Adnsinistrallol~. The Board o~ 1)ireetors of The American Tobacco C~mpany and it~ commktees and aL_,ents ha~e exsittslve a~athorlty to administer, interpret and appl! Ihe Plan. and their aet~ in so doing arm made conelusive. It 15 contemplated that if Prop,a.~al 3 is adopted, the Board will dsiega~ to the ]R~tlrement P[an Committee t~ he eslabllshed under the F~cv~.*ed Retircmenl Plan the ~en~ral administration of the Golden Belt ]?lan and ~he responsibility for ~arrying out the pro~isions of th~ latter 13Iar:. Trust Fund* ,.X]l funds of the Golden Belt Plan are to be ~le[d hi the Hetlremen~ Plan Trust referred to under the eaptio~ "Trust Fund¸' in the summary alcove of the ]Rev~ed l~tlrement PlaN. Bmleflts are payable scde[y ~r~m the t~ust hind, and Go/de~ Belt is not ~iable therefar. The~e are new provisions, Payment oJ Ad~si~i*tration Co*t~. It is the intention o[ Golden BeIt to pay the costs of administering the Plan f~,am it~ g~n~al [und5 ~o tha~ ~uc~ eo~ts w~[I not be a char~'e upor~ the assets of the Plaru However, th~ Plan eontalns, R~ a r~ew provi~on, the ~l~e provJ~i~ II~rmltt]n~ l/aytrteIlt o~ expenses fronl PIRn Q~8~t~ ~t$ i8 ~L!~llilariz~d lander the caption "Pnyment ~f Administration Cost~" i~ lh~ .'UrIlmary abow of the R~vi~d II~tirc~aent PIan. Amendment or T~rln~rmt~on. The Plan ¢ontain~ the same provision as is summarized under th,: eapllon "Aru~lld~ merit or Termination" in the summary above o{ the ktev~sed Fletlrement Plan. This is similar to the corre~p~,ndlng prov~slon of the present Plan. G~l~eral. The Golden Belt Plan contains substan~iaIly the sallle provisio~as with r~peet to termination e~ the pension of a person whe eompete~ with Go]den Be]t, su~penslon of the penslnn of ~ retired Employee wh~ retrains to Scrvlee, engagement of any person r eeelvlng benefits "ande r the Plan~ and paymen~ o[ benel'~t~ ~ ~t~id~ th~ Plan a~ are ~.~ntained in the present Plan and as nre ~ummatrlzed uader the ~apfion "Genersi" ~n Lhe ~ummary above of the ]Revised ]Retirement Plan. Th~ G~alden Bel~ Plan co.tarns, a~ ~ ne~ provislon, the provi~ion with respect to eontrlbutlons also summarized u~der the caption ~Gene~aI." RESOLU'IION CO.'~STITUTING PROPOSAL 3 The proposed r~s~hition con-~tltuting Pr~po~a~ 3 is as follows: ]RESOLVED, ~ declared advisable by the I]oard of Di~eetors~ that (1) the Profit-Sharing Plan of 'l he American Tobacco Compat~ submitted t~ thi~ Annual Meeting ~f ~tockheider~ be and it ~s approved a~d adepted~ to be effective a~ o~ January l, 1960; (2) the amendm~nl o~ Articl~ XII of the By&aw~ of The American Tobacco C~mpany ~ubmltted to thi.~ Annual Meeting be and it is approved and adopted with respe~ to all arrourtls allot~d or ~Mlablc for allotment that are m.~asured by net profils earned by the Company (a_~ such net profits are dedn~'d in Ssetlon 6 of Article X[I) in any year alter 19~9, so that Articl~ XII ~ ~ amended ~hall r~ad as s~t fortk in Exhibit A to the proxy ~tateme~t for thi~ Annual Mee~i~lg; and (3) the amendment of The American Tohe¢co Company ]Retirement Pla~ converting it ~nto the t~,o Plans ~ubraitted to ~hi8 Annual M~etlng~ namely, (a) the Ret~rer~Lerlt PIan ~r Employees and Former Employees of The Am~rlcan Tobacco Company and Designated A~llated Corporations and {1~) the ]Retirement Plal~ of The American Tobacco Company ~r Employees and Former EmpIoyees of Golde~ Belt Manufacturing Company, and each of said two Plan.% be and they ar~ approved and adopted, to he effective as ¢~{ January 1, 1960. The vote in ~avor ,~f Proposal 3 o~ I~older~ el" two-thlrde in ~nt~re.~t of Preferred Sleek and o| twr~.th~rds in interest o{ Columon Stock pre.~efR at the meeting and vc~tin~ Jeaeh voting a.~ a class) is necessary tor the ~doption theleoI. The Management recommends thet you vole FOR Proposal 3. 18

EXIIIBIT A f'o[le~vlng is the text of Article XII of the B!-Laws of the Company as proposed to be amended. The amendments consist o{ ~a) adding to Se~tlons ltA), lIB , 1{C), 2/B), 2!C), d(A) arid 7 tile words underscored in those Seetirms in the texh Ib} redeslgnating premnt Section 8 as 8eeth n 9, and {c) adding a new Section g, underscored in the te'ct. Undcl'aeorlng is u~ed only to identif! the mw matter; it is not part of the By-Law. ARTICLE Xll Section 1. (A) As soon as practicable aftm the end of the year 1957 and of each year thereafter, if the net ploflts earned b) the £'ompany during ~ueh year. as hereinafter defined, exceed the sum of ~15.500000, there shall be made available for allotmenb subject to Section 8 hereo~ and a~ herelnMter provided, an amount eqna] in the agglegale to 5% of the first g6 0O0,O00 of such excess, 4% of the next ~2,700,000 theleo . g~ of the next $2~700,000 thereof. 2~ of tile nexl $2.70LI000 thereof and 1% of the balance thereof. (B) Of such aggregate amount. 20% shag he allotted to the person ~r persons w[m during such year held *he o~ce of the President and 16~ shah he allotted to eae]l of the persons who during such year hdd ire office of one of the two Senior x~'ie~e Presidents its incetdive colulmnsat[on, in addition to the fixed ~alaiy of each of such per.~ons for such year, suhiech ho~e~m, to Section 8 hereof. If any such office shall have been vacant at an}, time during the )ear, the amount to he allolted to the incumbent or ineundients of suell o~ce ~or ~uefi year sha~ lie redu~'cd proportionatel ". If any such o~ce shall have had more than one ineunlhent during the year, the amount to be allotted in respect of such o~ee shall he divided among the different ineumhent~ in lhc proportion of their respective periods of iuculahency daring the yeax. Nothing herein contained shall gi*e any incmnbent of any o0~ee an~ rlgh[ hi e]alnl to continue Blerein, or any other right except as herein speclfieally expressed. (B) 'lfie balance of 4g~/~ of such a~gregate amouat ~,hag be a~afiahIe for alIohnent to other he}" employees, as pro~ided in Section 2 he~eof in addition to the fixed salary of each of such employee~ for sneh year, subject, however, to Section 0 Berenf: Section 2. (AI As s~mn as p±actieah]e aftra" the end of the year ~.957 and of each year theleafter, a Comlrdt~e, to* he known as the lr~eentive Compensation Committee, eonslsdng of the President and lho Senloz Vice~Pres~dents or Senior ~glee President then in office, shall deMgnate a Management Group to participate in such allotment, which group shall consi~l ~f all salaried employees of the Company whose salaries during all or any part of such year were a or abo~e a salaxy rate determined by such BommBtee, hilt whleh rate shall in no event he Iess than ~N~,0(3fi per annum. A person who during part of such xear has held the o~ce of Presidenl or Senior VieePresident may be included in the Management Cronp for the portion uf the ~ear dining wlz~ch he ~as in th~ employ of the Company hut did not hold either o~ such o~oes, and Lhe allotment to such pelson as a member of the Mamamement Group ~haB he in addition to the allotment to ~ hieh he is entitled under Section I(B). (B) Within 60 da?s a~ter receipt from the independent publle aeeollntants of the eertiBcate to he furnished pur~ual~t to SecLien 7 hereof show~ng the aggregate: anlount aval]ahle for allotmenL said Balance of 4~ of such aggregate amount shall then be abetted (subject, howm,er, to Sectlvn 8 hereM) among the memhers of such ,Manage ment Group as ~dlows: ) Onedlalf of such balance, or 24% of such aggregate amount, sha~l bc allotted to all memher~ of such Group pro rata according to file proportion which the highest fixed salary rate fiurlng each .~ueh )'ear of each naelnber of sald Group hears to the Iota] o{ the highest fi~ed salary rate~ for suef~ year of all the nlembers /if said Group. In the ease of an} members of ~uch 5~anagement Gloup who wine enrployed by the Company dullng ]es~ than air of any such ~,ear the pr~> rata cmnputafion hereuudcr shall be adjusted proportionately to Dmludc such rnenlhers on 7 for e r fu ca endar monB~ of employment during such 7,'ear. fn *he ease of any members of such Management Group who have held the office o~ ]President or fienlor Vice President during part ef an) ~uch )'ear, the pro lala computation hereunder ~haI1 be adjusted proportionately to include such memlaers as if they Bad been employed during such yea mdy durlnZ the full calendar months of their employment in capacities o mr Ban as P~estden or Semor ~ ce-Pre_ den . 19

(2) So much of /he remaining balancc of 2~% cf snch aggregate amour~t as the Incentive Compensation Conm~itte~ dctc~nlues~ in iLs sole discretion. ~ball be allotted azuong the nlembcr~ of ~ueh ManazelnenL Group to such ludlvh/aa[s in said Group~ and in sucb amounts as to ludividual~ a~ the Incentive Compensation Conlmi~t~e, in its s~le dlscrc~i,~n. ~hall dctclnth~¢. (C) In additlon to the foregoing, there allall also be available for alloLrnent to such Management Group within the 60-day period .~pcclhed in paragraph (B) of thls Section any amount, no~ in exces~ of 16% of ~ueh aggre~a~ amount, wtdeh is not al[otted in such year to the Senior V~ce-Presldents or Senlur Vice-President ~rsuanl to Section 1 (B) hcre,3~ by reason of vacancy ~ any time d~rlug such pear in either or both of such o£fiee~. So much of such additional ambuLant as tile lneenlive Compensation Commlttee determlncs, i~ i~s sole di~cretlun, sha[[ be aLLotted (subject, however, to Sccbo~ 8 hereof) among the members cf such Mana~ment Group to such indivldnal~ in said C'roup, and lu such alllounls as ~o indlvidlial$ a~ the II1cen[fo~ C¢~m]Den.~atfon Comro~t~e~ M it~ ~olc d~$~l~t'tfotl, ~haI[ determine. Section 3. (A) No part of ~ueh aggregate amount avaboble for allotment as shall not have be~n allotted under Seetlun~ 1 and 2 hereof, withfo such 60 day period, for any year may be carried f~rward for suheeqnent allotment. (B) As used in Sectlon~ 2 to 5, luelualve, ~f this Article the word "Company" m~n~ The American Tobacco Company and its suheld~r~es (except J. ~¥~x & Sons LLmiLed) included in the consolidated financial etatements ~¢t forth fo the annual reports ~or each yea~ ~ the ~ockholders ,~f The American Tobacco Company, tog~her with such other snh~idlur~e~ or afffl~ate~ (which may lucIude ]. Wix & Sons Limited) as the Incentive Compensation Conuluttee shall expressly designate for any ~uch year. (C) All d~ci~fons of the Conmalttee pursuan~ to the provlsfons of th~s Art~el~ shaII he b~ndlng and conel~*lue on all luterested parties. Section 4. (A) Pa?'me~t tt~ ea~:b Pr~'side~t and Senior Vice.President, of the amounts payable to them under $~¢tion 1 (B) here~, and to each of the allottee~ nf th~ Mana~erne~lt Gr~up of the amount of his to~al allotment, under Sections 2(B) a~d 2(C) hereof, with respee~ Lo any year shall be made as follows: (1) One-half thereof shall be payable in cash ~ soon as pra¢licabl¢. (2) St~bjcet to Scctlun 8 hcrcof, the balance, l~elug one-half thereof, shall he contingently payable as hereinafter pr~vlded. (B) All ameunt~ contingently payable to all p~rson~ hcrcundcr~ su~ persons being hereafter referred to as ~'participants," ~hall b~ payabl~ in caall in ten equa~ annual ~ontingenL installments, one such installment to bc pa~d on the last business day in ~'anuary, or as ~oon as p~aeLicabl~ tl~r~after, lu each o~ th~ ten ye~r~ fellow~ng the close of the year in which the participant's empluyment by the Company term~nate~ bn~ all such payrae~ts shall be subject to the followlu~ conditions: (1) If any participan~ ceases to be emph~yed by the C~m,pany within a period ~[ five years from the clo~e of any year ~o~ which an a[~otraent is made to h~rn bereunder~ the part of his allotment wkh respect to ~ueb year whSeh ~ contingently payable ~n in~tallmer~ts as aforc~ald shall hc reduced to the p~opartfen thereo~ which the ~umhcr of complied calendar qu~r~r-)ear~ from the hegi~ming of such f~ve year period to the Lerminatiou of cmpl¢~Tnent bears to t~¢n~y; provided~ kowe~e~', that the provlsfon~ of thfs ~ubdivislen (i) alla~l have no ~pp]~ea- tio~ to any termination of ernploymenL (a) by death ~3r (b) under eu~h circumstances that the participant i~ eligible for retirement benefits (foeludlug early retirement), severance benefits or d~sabflity henefit~ m~der the Company's Rellrement Plan, or (c) for other ~¢asons d~m~d By th~ Board ~f D~rectors not detrimental to the (if) PaymenL of all unpaid lustaXXments shall be contingent upon th~ fmrtlcipa~t~s not havint~, sin~:e ~e term~- nation of his employment w~th the Company, a~ptrd employment with, or rendered personal servlc~ ~ any eorapetltor of the Company or engaged in any act[vlty in eompetltJon with the Company, except a~ expressly approved by the Company. 2O

(iii) Payment of each suok insta[[n.ent shall bt~ condilioned upoa the participant's having during tb.e ~ear precedlng such payment been availah(e to the ~c~ard of Dircctor~, or auy representative designated by the Board of Direclo.s~ for ~c~nsu/tatlon, at such tiroes and places, upon prior written notice, as the Board or suc~ rqpre sentalive n~y reasonably rvque~ bav]n~ due ~'egar d t~ th~ a~, h¢,~]t b an~ con.J~llence .1" the p~rth;il0 a n t; provitled~ however, thal the part[~ipaut is to be. ralmbur~ed for all expvn~ izt coDnection therewith, and ~[ said partlclpaat Js more haau lll~ rhile$ from the CompaiLy's i0alne]pal offices, s~cb eon~ukatlon may at his optlon he at the pisce where he tho~ is located and may b~ at the Company's opLion, either by persoual ei~k to Itir~ by the ~eprc.~ntati~e of the C~mpany for ~uch pu~pohe~ or by written eommullicat~olL (~v) Subject to Section 5 }~ereof, no s,~eh in~talhalent may be transferred by an'/ pa~tlalpaut in any matli~r whatsoever, inchadlag transfer by opcrallon el law. If any participant is. in the a]pinioii o~ the B~ard of Directors, incapable of handin~g hi~ af~a~rs~ ~r n~shes or ~u~rs an'/ attempted transfer, whether voluntary or involuY~tary. o~ any contingent ha~tallr~en~ then in the cllscret~on ~f the Boar~ of Dii'ector~ payment thereof t~ such participant sh~ll cease ~td pay~rler~ts may be malty or applied to or for tim ~ra~fit o~ such parBo~ps~t or bls sl~ouse, childreD, or other dependents, or any o[ them. i1~ such manner and in ~ush proportion a~ the Board c.f Direc~ors shall (rein t~me t¢ tlme deetll proper, subject, bo~cever, to the other 3~rov~slons hereof (C) Any p~ti~n o~ any allotril~l~ whle~ te~r~sh~at~ hy reason of nonco~lpl~ance wlth ha conditions thai1 revert lo the Company. Section 5. Any of the ~a~d anuua[ e~ntin~ent pnym~nts that may ~all due a~ter death ~f a pattlclpant shall be paid in such installmeut~ a~ ]aerein pr~vlded, either to sucl~ pe~s~u a~ shall furinsh evidence sati~hactc~ry to the Company that unc]er ~e ~ast w~U and t~stame~t el th~ participan~ or for other reason such person i~ au~rised in law ~o recelv~ ~uch oay~,~sh or~ in th~ dlscreti~n o~ the Company, to s~sh person a~ si~ali f~lrn~sh the Company with evldeace of ap]poinlment ~ repte~nt~tive o~ the estate o~ the pa~ticip~t; 1~rovlded~ however, that th~ ]nceafive C~r~l)e~a~o~ Bo~rnltl~o ~ay, in i~ #olc di~rel~o~, a~le~'a~ ~Jle or m~r¢ ~ s~ch pa~me~lts. The Company ~y rely upon a~y opinlon o~ counsel ha deter~halng the person e~tltled to recclve sash payments and the ~elpt I~f a~y such persol~ for ~uc]~ payment~ shall ~eleasc the Compally ~ror~ any ~urthcr obligatlon in respect thereof. The word "'person" a~ used in thls .qect~oll may hacludc one oc more hadividuals, f~rm~, trusls or ¢orl3erati~lns. Seetfotl 6. l'or the purpose o~" this Artlcle. the ~rrn "~¢t l~r~fit~ earned by Ihe Company" ha ~ay ye~ is de~ned t~ nacan the n~t i~colne stated by tl~ independent publ~o aecouma~t~ who have audited the Company's books as ~alrly r~fisctin,g the conseildated results of the operations for s~ch year of the CoIt~pany and it~ ~ubsidlarie~ included in the con~t~lldated financial statemcnt~ set forth ha ll~ aunual report for such year of the Coulpa~ly to the stockholders, but adjusted tc~ excinde (1) the fiuanefo[ sta~mcnts of J. Wix & S~ns Limited from suc~ consolidated financial stal~ments ~s if it were an ~ne~s~lidated subsidiary and (2) all gai~ in exces~ el fe~s (net ot: federal tax appIicabIe thereto) resuhir~g from sales or ~ther disposltion~ of land~ buildings, ~ood will, brands, trade-marks ~d invest~lenls in ~ub- ~idisrfe$ or" other cornp~tn~e~. Section 7. At the t~me ot rendering their ~eport with resJ~ct to the financlal sta~na~tlt~ of the Com]~any and ~ts coll~lldated subs~dlarfe~, such pubthl ac¢~untant~ shall ~so furi~sb, to th~ Company thalr written cert~ftcate ~tat~ng the aggregate amount available for ailotraent ~r ~lsh y~ar, and the amounts t~e~'eo~ tc~ be allotted to the President a~d t~ each ~e~or ¥1ee.Pr~sld~nt, and the amount available for alloh~t~t to the Mar~a~rncnt ~roup~ pursuant to thls Artisfe wlt]~out r~f~rencc t~ S¢ct~on 8 hereof, which certificate a~ t~ the al~aouxlts aveilable ~d payabl~ hvreu.qdcr ~all be~-dhag a~d co~cluslve o~ a)l inter~ed l~rtie~, .qed ~ o~e cl~n2ha~ berem'~der shall bare ~ Hght t~ q~e~ion the same. ~r ~ any exa~inatlort of the books or a~:cot~t~ of the Company or ~uheldiar~e_~. Section 8. After the aravm~ts to be aBoued ~a~cler Sections I(BI, 2(B) ancl 2(C) hereof wish r~spect to any year have~il~ed ~or all partlcipan~ without i'~tlon, the amount thab but for t~ e~ntlngentiy payable pursuant t~ ~ubparagraph (2/ of S~ct~o~ 4 (A/ hereof to eaall part/c~pant for such year shalI~ ~y a sur~ equal ta she amou~pporfieued to such participant fo~ saok year under the Proftt.Sh~ ~ican Tobac~ompany. $ecfio~ ~ This Article may be repea~ed ~n~7 by the a~t~o~ o~ the ~tockh~lth'rs o~ the Company, and nol hy the Direetor~. L'p~n the unartha~ou~ recolnmend~llon o1[ the ~cent/ve CoIn~ensa~fon Co~nm~tee~ thi~ fi.rtlcl¢ may be 21

amended or moditled by the Directors in accordance with Article X], except that, without the approval of the ~tock- holders of the Company, no such amcnc[ment or modification s~lall he laads which increases the a~3gr¢~ate amount payable [~ercund~r or attcrs the amount thereof payable hereunder ~ the Presid~,t and Senior ¥ic~-Presidents. EXItlBIT I~ Fal[owlng ate the Profit Sherln~ Plan definitions of terms tl'cd with thelr Platt meanings in the summary of that Plan c.ntalned in the fore~,oing proxy statement; "Effevtiw Dale" raeai~s January 1, 1960. "Plan Year" means any calendar year l~¢g~nn[ng on or after January 1, 1960. "/-mp/oyee" means any person in the Service of tile Company. "Unad]uste~l Ear1~inge" means with re~pect to a~y M~mbcr all earnings of the Memher in any Plan ¥ear~ including o~ertittle and extra thlfL pay, holiday and vacation pay, and amounts paid for perthds of leave of aheence or of excused absence, plus undeferred nonc~ntlngent compensation ~ndsr Article XI! of the By.Laws ~f American ~r such Plan Year, ]~ut excinding (i) contributions or henefits under this Plma, (ii) Wothm~n'~ Co~xlpen~aLion payment_% {ill) ar~ol~nt~ patti by the Goinpaay ~or insuranc~, retlremcnl or other henefiL~ a~ld (iv) deferreti c~atthgent cornpellsatlon under said Article XII. ".4dialled EarninSs" mean.~ wi~ respect to any Member tee sum o~ (i) the Unadjustecl Earr~ing~ of the Member ~n any Plan Year not in excess o~ $4,8~0 and (il) an amount equal to one and one.half times ~uch Unadj~ste~l Earnings in excc~s of $4.800. "Depositor" means a Member who !!as authorized payroll d~cluctlons as providsd in Article X. "Ba~e PAT" with re~pect Io any Depoaltor under Article X mea~s his Unadju~teti Earnings les~ overtime, sick benefits~ and compensathoa unde~ Article XII of the By-Laws of Amesican. "r)si~harg~ yor Cause" nlean~ discharge for cont]uct con~ti~t~tlng, in the jttdg~lnent of the Gomanittee, dishollesty~ il~suherdir~atinrt or willful de~trucllon of or damage to the property or business of the Company. "l)isab~ity" means a physical o~ mental condition of a Member~ determin~cl as provided ha Scetlon 7 of Article ¥II, rendsrhag ]~im permanently incapchIe of continuing hi his employment with the Company. "Valuation Date" m~ans the Annual ¥aluatloxt Dale and each other date, as dstctm~ined from time to tian~ by the Co~maittee, as of whicla fond~ and accounts are valued or adjusted as providetl in Azticlee ~¥ and X. "Fair Mar~el Value" on any date rnean~, in the case of rely securtiy traded on the ~New york S~ock Exchange or the American Stooh Exchange, the closing price thereof on ~uclx Exchange on such t]at~ or, if no su~]l ~ale o~¢urs on such date, then on the tir~t pr¢¢etllng date on which such a sale oecurr~ti, provitied, such preccdi~ date is ztot ~1o~¢ than fiw ]~ualness c]ay~ })e~ore e~¢h v~ue date ; in all other eases "Fair Marlcet Yafo¢" rneans the value repor~eti by the Trustee as being the fair market value at st~ch ~ate ~ determined by it according to its u~ual methods anti procedures. "Credit ~ala~c~=' means, with respect ~ any acco~ant~ th~ Fair Market Value of the assets represented by the Unds ~[andin~ to the credit of suc]a account. ~Net ]r~corne B~r~ Taxes" for may Plan Year means the income, l)efo~e taxes on income, ~tatecl by the independsnL public accountants who have audited the heok~ of American a~ fairly reflccllng, before such taxe~ and before the contrib~ion under the Plan, the eon~*ol~dat¢3 r¢~uits of the operations for that year of American and i~ subsidlaries thc]uded in the ~nanclal ~atements ~et forth in th~ a~nual report for euch year of Amealcan to it~ stockholders- in~t adjusted to exclude (i) the financial stateme~ts of J. Wix & Stuns Linaiteti and Go~dsn Belt ManufacLusi~g Co~npa~v as if they were unconsolidated su]~sidiarle~ and (il) all gain in excess of loss re~ulting from saIe~ or other tli~poaltdsns of land, butiding#~ good will~ brands, trade-rnarhe anti invcsLment-s in suheldlacles or other cornpanles "Ne~ FV~rtld" ~r any PIan Year laea~s the amount slated by the inclegondent public acco~nta~ who llav¢ andited the hooks o~ A~aerican as representing the ~toekholdsrs' cqalty~ aL the end of the calendar year jnmledlately prodding such Pla~ Year, ~n American ~nd ~ts consolidated snheldiarie~ inclutieti ~n the ¢onsolltiated financla] statet~/e~ts set forth in the annual report for s~lch preceding caheldax year of Anaealcan to its ~o~hhol~e~. ~Board ~ Direct~r~" n~ean~ the Board ~f Di~ectol~ of American. 22

EXiHBIT C Following are the Revi~'d Retirement Plan defirdtion~ o[ terms used with their Plats axeanlng~ in tl,~ ~uratuary of that Plan contained in the foregoing proxy statement: "Effecth'e Date" mea~Ls January 1, 1949 "Revision Date" raeans January 1, 1960, "past Service" and "Future Service" refer to Service kef,~e a~td alter the Re~irLon Date, ~espe~tB,ely. "Service" means regular employraent by tile Compar~y or any of ~ts predecessor eonapata~¢s or hy ,any eo~poration wMeb at the time o1 such employment is or was an affiliate of the Company, whether on a ~alaried, hourly-rated or pi~c~'~=k hasi~, (1~ as • t~li time Employee ~r (2) t~ the extent provided ~n A~ticle Viii, ~s a ~e~ual Empl~ye~ in any o1 the Company's K~ntueky, North Carolina and Virginia redrying planl~ and stemtneries whore sigarette and sllloklng tobaccos arc handled (inclltdlng seasonal el~lph/~/nent in the trucking a/ld ~toying of, al~d nlallltenance of records relating to, the tobaccos fiandled fit such plant~ and stemmcrie~). The term "~rvice" shall also J~elude part-tlme employment if and t~ thc extent that)the ]~oard "o~ Directors sha~ so pro~'ide but shall not include ,~mporary emplo~T~ent, uther ~ea~mal employment or employment on a retsin~r or ~ee basi~. "Employee" means any ~erson in the ~er¢ice of the Company. "Normal Retirement Date" is the last day of the caIendar month in which an Empioyee's 65th birthday- occurs. "Actual Retfrelttertt Date" is the last day of the calendar month in wkirh an Emp]0yee retires pursuant to Article IV "Jvemge Ann~ Actual Eornmg~" in any perled moans total annual Actual ~arnings o1 the Employee dulfi~g ~ueh period divided by the number of Years of his Servire wit]~in that period. '*Year" means a ealend~r year. Fractions o1 Year~, on thc basis o~ fulI calendar months or major fractions " thereof, edit be taken into account in computing Years of Service, Past or Future. "Season" means any period beginning with the start of the handling of a new crop of Maryland tohaeoo and ending with the closing o1 the redrylng pIants and stemracrles after the end o1 the handling of the ne~:t fallow~.g crop of Burley tobacco. EXHIBIT D Following are the Golden Belt Retirement plan deflnifion~ used with their Plan raeanings in tbe suromary of thai Plan contained in the foregothg proxy statement: "Effective Date" means January i, 1949, "dme~tdmem Date" means Jalmary 1, 1960, "Past Service" and "Future .Serv~eE" refer to serwce bdlnrc arid after the effective date, reap~tlvely. "Service" means regular full-tim~ employment by the Comply, whether on a salaried, houri)'-rated or pieoework basis, excluding all seasonal, temporary and part-time employment or employment on a rotalncr or fee basis. '"Emplos~e" means any person in the service of the Company. "Normal Retirement 1)ate" is the last day of th~ calendar month in which an employee's 65th birthday occurs "Ann~al Rate o] Compensation" means: (1) With respect to a pieceworker, file total piecework e~nlngs for any representative run.week period designated by ~he Board of Directors. excluding any adjustments for overtime pay, di¢lded hy the torsi number of hours worked and th~ resulting av0rag¢ hoully earn¢ngs multlplled by 2080. UnIess otherwise designated by the Beard of D~rectors, the represer~tative period on the Effective Date of the Plan wlil be the four-week period ended September 19~ 19~q. (2) With respect to an hourlg worker, his basic straight t~me hourly rate multiplied by 2080. (3) WhL respect to a salaried worker, his basic annual salary rate. "Actual Earnings" mean~ all earnings, including overtime, extra ~hift pay and hotlday pay but exdluding bonus, eompoasatlon under the Company's Contingent Conapcnzatlon Plan, sick benefits, amounts paid for insurance, behests under this Plan or other benel]ts. 23

T~ A~4ERICAN T~CCO CO~PAN~ [LIHI~ATING AND AO~TING ~RIE$ . CONSOLtDATEO STATE~N~ OF INCO~ FO~ T~ YEAR 1959 Nzv ~LCS ~LES Of L~aF TO TH~ A~lca~ TOBacco CONpANy CI~AR~ DzO ~ 2.593.e~.3~ CRedIT ~T Or SALES. S~LLIN~, GCN~AL COST O~ ~L~S ST~CK ~OL~ . R~VAINZO ~ARNI~ NeT INCO~ for 19~ 2,559,5~.36 1.792.15 ~7A3~ - Co~¢~lsslo~oa LE~r pURCS^SE± APPLICABLE TO rl.,s.~o ~ooos 6,416.61 5,220.2h 1,196,3~

TE AHER~CA~ TOBACCO CO~IPAt~ ELIMINATI~ AND AOdLP~TING ENTRE$ . CC¢~OLID~TED STAT£~'E~T Of- INC~a,[ F~'t l~ "01~AR 1959 .2. R~'rA I NED EARN ~I~S ~.~NCE~ OEC~.eKe 31, 1958 CO~T O~ 5AL£S. S~LL~NG* GENERAL. A~D ADM I.~ 15TRAT ~VE EXPE~E~ COe.~ClSSlON Oe~ ~.¢Ar ~OLO THE ANERICAN Tao^cCO cONPANY LEAF TOBAGCO. JLe*~UFACTtF~I[D STOCKf OP£R~.T~NG SUPPLIES. ~C. k~ ¢O~T U:s.r STOCK RESERVE FOR INVENT~Y vALUATION OF THE LJ:Ar ~EPAR~r~NT Or" THE AH~RIC~.~ TOe~CCO COHP~W~ o[ ~s I~ 69,~86.68 ]],6oo.oo C~E~IT PA~¢ 2 78,0~,o7 TO oE~t I~C~NE WI~H tH~ I~EA~¢ rO~ THE Y¢~ 1959 I~ ~HE A~UNT or t~[ I~T[~COMPANy eROrlT OF T~ #~rlC~n DECE~¢R 31, D~C~£R ~}, 78,c~ .o7 69,~86.68 8,597.39 (CONtIN~ED)

TH£ ~%~4ERICA,~ TOBACCO CCR4F'Ah~Y Et IMINATI'4G #,N() ADJUSTING ENTRIES . C?~qSOLIOATED STATEMENT 0~" I"~COME ~OR THE ~ 1959 R£TAIN~O EAmNIN~ NET I~CON~ FOR 1959 F£~AL ANO OVHtR TaXCS ON INCOM~ F~O~A~ ~CON~ TAXES F¢~ERAL INCO~ T~ "3- ~B t T PA~ 3 CR~OIT 31 ,~2.42 TO ~o~c£ CON~OLtOAT~O r~m~RAL I~¢O~ VAX~S By AM ~I,oUNV ~UAL TO ~Ht r~O~RAL ~NCO~ TAX Or TH~ HAT~¢~AY-ST~ CORP~A~tO~ ~N~ THE A~ICAN TOBACCO O~d~Ny Or THE ~tCNT, IMC~ ~PPLICaSLt TO TH~I~ ~O~IT O~ TH~ H~TH~AV--~T~AN~ ~PORATION IN 27A3~ -- CO~I~a~ON ON LeAr m~C~A~S CONP~Y pRO~S IN .3o 1.369.51 78,0~]~,07 *3~G ( e,o~ iNu~oI

yHE AM~RI~N TOB~CCO COMPA~ ELI,~INATI~IG AND ADdiNG ENT~IE~I ~ C0h~SOLIBAIEO STATEHL'qT ~ INCO~I" ~'OR TH~ YLA/~ 19~9 PA~E DEBI~ 6,586.62 SALZ~ yt*~ 1959 TO I TH~ AMEIIClN TOBACCO COHPlUY I.&mtL~ TH~ H~TH~Ay-$TCANt O~m~lO~ ~OE CLOTN 3~8,757.O7 TOTAL {CONT It*U~D)

THE A~I.RICAN T~C~O CO~PAN~' EI.IHINATrN~ A~ A[)JIy~ITING ENTRIES . CON$OLIDATEI) ~'TATEM~NT (~" IN~ F'CI~ TFL YEAR 1~ DCeJ~ COST OF ~AL~ . ClaAmS PA~E 5 C~¢DI~ APpL~¢Ae~ TO TOTAL ~ C~O~A~ON ~.661,138.o6 I~, h83,~03.35 178.o3~.71 9~.a57.79 9a,607.97 1.65~.~ 8~,798.19 8~,7~8.78 g,o59.~ COST or ~L[S A~I~ISTmAT=Vt CXP¢~

II~E AMERIC~ TOBACCO C~pAN¥ EkIMINATIN@ AND ADJUSTING E~TRf~S . O0~0LIDAI~ ~AT~NT OF INC~E FOR THK Y£AR 19~ p~E 6 COS¢ or ~AC£~, SCLL~aG, ~E~RA~ A~O A~N~SVR~¢~VE C~pCNS~S R~rA,NtO ~A~I~C~ N~T incc~E ~om 19~9 -c- Dzel~ ~9,219.08 I . CR~oI~ 29,z19~68 To CH~C ¢OS~ Or SAL~ VOR TNE r~CR~A~ ~N GOLO~N B~tr MANU¢~C~UR~N~ C~m~ m~orlvs rN INW~TOR~S Oe Ozcev~ 31, 1959 Ozc~Beu 3~, 19~8 I~cmE~st pRO~,rS i~ F~£RAL I~CO~ TAX

THE ~ERICAN T01~AC~O C{~4pANY ~LIHINAT~NG A~O ADJUSTING ~TR~[~ . CO~4~LIOATCO STATICal#IT O~" I~CIJ4£ F~ THE YEAR ~9~9 P^~C ? O~H~ INCOME DlVJOCND A~ ~TCR~ST INC~ FR'~SU~$1pI~I~5 xzr ~Ncc~c FO~ 19~9 4GO~0~O 9,o38,19 C~DIT 9.o38.19 ~0o~ooo,oo T~ ~LIMIHATE OIVJ~ND~ AND q~r~R£~T paid ay GO~ 5CL~ M~NUFA~TU~IM~ C~Np~NY TO THE AN£RICA~ ToeAccO A-1 I ,~59,3o1.36 69~,61~ i ,~6o, ooO ,o~ r OLLO~: ~I~I~¢~ .~

THE ~R~C~ I~BACCO C~Y ELI~IINATING ~D ADaUS]'ING ~I~IES ~ C~t~LI~ATEO ~TATE~IENT OF INC~4E pA~E A~2 OTH~ ~E~UCTI~S F~ IN¢~ O]'N~R EXp~SC~ ANt, LOS$1:~ OEBI~ 56o,98 CR~DI~ 3~8.77 2o2.21 To ~¢~A~I~'Y ~ OTHER EXp~I:~ A,~ ~.o~ ~560.9~ OF FEO~AL ~r~ C*T~ ~'~X¢~ C,~ ~O'~ i~ ~ T~ ~Hr~

~L 00°000"0~ * t • ~mI ,~.N31~o ~H~ ~,a ,~N,~,~KO~ CIO "000 '000' I 00"000'~' L ~ t'~90'~6'9 ~L'gkZ'996'9 o~I mv~v ]H± - 0~ F;~61 "t~ ~3~30 ,~NYcMO~ C¢3~y~301 N~A2taY ~H±

TH£ ~[flIC~ TOBACCg C~Y [LIMINATING ~D ~JUST~G ~TRbE~ - C~OLIDAT~D 8AL~ ~D ~CENBER 31, ]959 pAG¢ 2 RET~IN~O [AR~IN~S I0,981,65 ~ALANC~* 01¢~. 31, 19~8 9.1~.~ N~T I.COME ro~ 1959 L~A~ T~A~CO, MANUFACTU~O sToCK, O~ER~rlNG sUppLiES, ~TC~, XT AV~R~ CC~T 6,BI 6.61 ~,565°04 D~TA~LS rO~L~: AppL~¢~Lt TO r~NISHE~ gCO~S I~¢¢O~T~ ~I ~R~CH ~OCK~1 BALANCES O~C~E~ 31, D~CCM~ ]I, 6,~6,6~ 5,~o.~ ],~96.37 Io,981,6~ 9,1~.5o 1 Hgz,lq (CONT4NU~}

THE AI, IERICA~ TC~BACCO CO~IPA~y [LININATING ~NO ~JU~TING ~TRIES - C~OLIOATED BALA~IC[ 2~I[ET ~CEMBER 31 , 19~ PAGE 3 L~Ar TOaA¢CO. MAMU~ACrUR~O STOCk. O~RATIN~ SOppLd¢~ CTC.. AT AV[~Aa~ COST LIAr STO¢~ 78,o~.o7 ~U~T ¢~ TH~ ~OIRE~ V~UA~ ~ R~V~ Ar ~e~M~[~ 31 , 1~, ~WR TH~ ~M~N~ ~S~WO AT D~C~MB~ 3], -5- k~AF T~ACCO, M~NU~ACr~m~O STOCk, ~E~TI~ SUm~LI[m, ~T~., ~r AV~RA~.~ C~T R~T~IN~D ~Am~ IN r.~ NET ~.~,E FOR I~59 29,167.~ TO ~.~o ~o TH~ AMOUNT Or ¢ONSOLIt~AT~O rNW'~TO~I~ AN ~t~nUN~ E~t/A~. TO ~H[ F[O~ INC¢~ TAX Or T~ HAT~w"Y

?H£ ~IERIC~ TOBACCO O~I.I~Y CLIMINATING ~D AOJO~TING I~ITI~I[$ - CC#I~LII~ATED BALAN~ SI4EET OECEM6~R 31, 1959 TOTA~ 6,~16,61 AMOW~ .3o .30 1,369.5~ 356 -6- o~s '-.Z ~z,8~o.71 15

TI4~ AHE'R(C~ TOB~CO CCHPANt" ELI~INATI~ AKO ADJL~TING E~TRI~. CO~_iOA?[O 6AL;tCE S~EET O[CEiqB~ 31, 1959 TO ELININAT¢ i~CC~P~Ny ~C~tVABLE~ AMD P~YABL~S, -A- [~¢BIT -B. 1TolG zl oT~ r~8 2 .~0,000,00 ~83,~5.33 P~ C~OIT TO tLINI~ ~NVCSTME~ I~ CApitaL ~OCK Or ~L~N B~LT ~N~r~CTU~I~ CONPaNy,

THK AbI£RIgAN TOBACCO C¢4~ANY [LIHINATING ~1) ~dUSTIN~ B~ITRIE$ - CONSOLIDATEIJ BAL~C[ ~E[f 0EC~ER 31 , 1959 pA~E 6 RETAI~ED ~ARNI~G~ B~CA~¢~ ~CZMSZR 31, 1958 ] C NIT ~C~ FOR 9,9 Oce~,[~ ~I0,Io6,61 ~80,886.93 8T,TS~.~8 D£C£~B[R ]i, 195~. OYER TH~ ~HOU~T or $UCH P~OFITS IN INVeNTOR(IS ~T D~G[M~[~ ]1, l~J. WR4PpI~ D~C¢~ 31. 1959 O¢CC~I~E~ 31, 1958 INC~AS~ F~CTO.Y 41o,~o6.61 87,784.h8 87~,898.6o h7.~9.53 198.o6] .20 ~5,6k7.93 ih2,736.15 ~13,~55,43

THE ~ERICAN TOBACCO CO~g'AN~F ELIMINATING AMD ~JI3~TING ~TRIE$ - CONSOLIDAT[I) BALANCE SHE[T PA~ 7 ~PPL~CABLE TO I~V[NTORI~S AT D~CEMe~ 31, I~ INCREASE Nffr I~¢O~E FO~ 1959 T~ ~LIM~N~TE THE AMOUNT O? ~IVIDE~ p~D ~Y G~L~N BE~T ~UFACTUR~ cOMpAnY TO T~E AHER~CAN T~CCO CO~p~N~ CAPitAL STOC~ 9~L30 - pRemiUM O~ S~RES TO E~I~II~T~ r~T~NT ~ CA~IT~L ~TOC~ Or ,J~ ~IX @< SO,ls L~NIV~[~ ~9,038,OO

TNE AM~iCAN TOBACCO r.O,~'~y ELIMINATING AND ADJUSTING ENTRIES = CON~L~DATED BALANCE SHEET DECEMOER 31 , 19~ pA~C R~TAI~ ¢~mNINGS R~TAIN~ ~AmNIN~S 97L13 ~ DIVIdeNds rAl~ ON COMMON S?OC~ TO ¢~I~I~AT~ 1"~ A~OUNy ~ OIVlDE~D PAIO SY J. ~lX & SONS LI~TCD TO T~ AM~I~A~ TObaCCO C~m~Ny A-3 L~AF STOC~ ~5A30 . J, WIX ~ ~a~s L~T~ 59].9~3-7o 7,~8z.18 L~ss~ L~I~ eoo~s AT DEC~B~ 31, ~959~ IN 601,19~.~

THE A~RICAN T~CCO C~LM~ ~CE~ 31, 1959 -I. 178,~5T.5o 176.~3T.5o 1~3.8~7.5o To R~CLAS~Lry TH~ ~MOU~T O~ ADVAN~C~ AN~ ~T~A~ ~¢~VASL~ WHICH ARC E~p~CT~D T~ ~ ~OLL~T~ O~ O~ O~O~ ~ 31, I~0. ~A~.~ ¢OLL~W: TOWAL

THE AMK~ICAN TOBACCO C~NY FI~CI~SSlFI~,TIOI~ ENTitlES . BALANCE SHE~ IIECI[I~KI~ 31, 1959 -2- I~SURA~ ~mOS;TS A~ H[~C~L~AN~OUS INWST~H~S: ~i~O . V.I .#~. ¢~T~ I~U~A~C~ O~mO~l~ Pm[pAf~ ~XpE~SES A~D ~£rE~CO CHA~[S 372,000,00 36,2oo*~ ~12,000.OO 37~,O00.O0 ~93~8oo,oo ~ A~o occu~Ncv - 1OOI~tT~A~ ¢I~A~S ~CLAS~rrI~ATrON 319,658.19 ~,~.19 ~2T,~OO,oo 1~2.m22,~9 ~6,I~2.~9 66,~00.00 ~2r18O.68 lV8.~8o.~3 ~80o.oo ACCOUNT NO. .0- ,.0. 27,18~.17 81,186.O] eT,18h.17 .0- ..0° 59,336.~5

THE A~I[RICAN ]~8~CC0 COF~ANy ~L#,$$1PICATION CN~IES = p, AI.ANCE $~ET OECEMSI'~ 31, 1959 UsE AND OCCUPAnCy . ~De~ ~CTIV¢ - MU~O~ P~L~N~¢ e~R BaOg~ ~TI~TED ~EPIID EX~SE RECLASSIfiCATION ACCOUNTS ~L~ A~O ~CCm~¢~ eXPEnSES ~OL1o = N~W YORK OffiCE COnTrOL ACCoUnT -2- lo,26T.5~ ~.867 .<k8 iggL~ 653,878,67o.18 6~3,878,67o.18 93.~93.96 ~,6h3.39 Ace RU~D PAY ~OLt. ¢~aLCSTO~ I 3,67~ .5~ I 3,O75.~O 59? *O~ ou~. 17 ,o87 .11 16,~95.3~ 591 -T9 Lou~ sv= :t~ 9,~56,~5 8,733.85 58~ .60 ~V,LL~ 77.12 T~.12 3-00 ~sw LL~ 17,14~ .9~ 16.8~.86 606.69 v* u~*,*~ ,8,o35.T3 16.96~.9o 1,o71.83 W~L~-8~ 7.689.71~ 7.25t,, tFt 1,~5.27 [CO~TINU~OI

TH~ A~RI~N TOBAC~ C~ANy ~CI++*~IFIC+4T$O~ E~+¢RtES . BA~N<~E SHEET ~C~IaB[R ~I, 1~9 To RKCL~SslrY T~ OALAMC~ I~ ACCOUNT NO* m2~6~ . GA~, WAT¢~ ANm ~HC~ m~mO~PT~~ AT ~CEHBER ~I. I~9 ~S HACK~NSAC~, N~W J~R~Y B~RMI~HAM, At~B~ ~RT~Aa~$, NOT~ 20~I0 - R~VABL~, ACCOUNT~ TO~A~ ETC. PAYXe~ ~0.00 TWenTY YEA~, ~TUR~N~ A~IL l~* 19~ T~TY Y~, ~TURIN~ J~NU~Y 1, 19~ 9,62~, 000.00 3.071~. O00.O0 3,000,000.00 ~, 160,000.00 TO R~CLASS~FY, A~ ~ CUR~E~ ~IABILITy, THE P~m V~UE O~ ~NT~ TO BE ~MEO I~ 1~0 TH~O~H (CONTiNUeD)

THE ~4E~ICAN T~J6ACC0 COMPANy RECLa~IFICATIC~I ~I~II2~ - BALANCE SIEI~T 0¢C~ 31, 1959 pAYable TO ~eSlOlA~ics 39,66~,26 1,81 o.o~ 1,810.0~ Zl ,O16,~ 21 ,O16.68 x ~.83z.z~ 53.?o 32.~8 53,To ~6,~3.73 2~,o16.6~ MISCeLLAneOUS A¢C~¢~ REc~IVABL~ R~¢~IV~S F~©M SOeSIOIARIE~

THE A~R]CA*~ T0~ACCO COflPANy RECLA~IFI~TIOt4 ENTRIES . ~AIJ~NCE SHEET pA~ 6 HlSCEL~AN~O~S xCCOU~T~ RECEIVA~L~ ~OA~7 CUnA~ TOBACCO COmPAny I~¢. MI~C£LLA~¢OUS A~O~TS ~CEIVABL~ -9- 9,~67,50 9,26T.50 To R~:CLA$51~'y TH~ F'O~TION or I"H~ D~e~.AmEm ~I, I~5~ e~L.~C~ I~ ACCOUNT NO, e~?A~0 - I~'~E~ ~C~IW~L£m ~'~c~o~" ~U~L J ES : cO~TuUC ~" ION * 66AI5 . CO.~aUeT*O~* "10- ~ C~OIZ 23,802,27 31.~1.18

TH~ ~*W[RICAN TCfl,,~CC~ ~N'y RECLAS$1F-ICATIO~ E't~TRI~ - B~LANCE ~:,HEET OECE~R 31, 1959 PAC~ 7 -II- 4~,2e,9.27 CR~DIT To R£CL#*S~IFY I,~V~NTO~y O¢ ~dAL FILTER TAREYTON LI~TCR~ ,~ND PLASTIC CASES rN HA~DS Or S~L~$ O~,~IZ~TIO~ GOOO~ 11,3~0.O0 • UPP~, ~C., ~T ~VE~ COST: TO ~¢l.A~v'y THt V;~LU~ O~ PU[mTO rt~CA~ R~W~ $T~,MP~ ~OM ACCOUnt" NO, "3(~A~ ~ TAX STAMmS, ~TC.mp TO

THE A~RICAN TI~r]Acco CGN#~A~y ~'~ THE yEAF~ 1~?e~9 6.5~6.~Z CRISpy 6,586,62

7HE &~RICAN T~ACCO COMPANY CIGAR DEPA~Er ST~EMENT OF I~C~4E . FINAt Fee THE yEAR 1959 763,36o.~9

I~lO - CASH IN~ D[CE~R 3I, I~9 THe ~CBIw ~LA~C~ O~ YX~ N~W YORK OFF~¢~ SOOTS AW ~CC~C~ ~I, I~9 rS COM~OS~ OF TX~ rO~L~IN~: D~BIT mAL~NC~ D~C~M~ ~I, l~

THE OKSIT BA~NCK AT D£CE~R 51, 1959 IS COM~S£O O~ THE FoLtOWING: C~S~ On H~N~ c,,o

1~0 . CA~ IN ~ANSIT DEC~BER 31. I~9 T~RC ~S ~, e~L~C~ I~ ~I~ ~CC~N~" ~T D~¢~¢~ 31. I~9,

10~ - UNITED STATES SAVI~,~$ BC~p SERIES Ep CASH ~CEME~EF~ 31, 1~9 o¢ ~c~ou~l" NO, ~1OA7~ ~ UN~T~ ST~T~ $~,y~G~ ~NO~, $~,~ Er ~ = OFfSeT t~CCOUNT,~ TOTAL L~

1OA76 - UNITED STATE~ SAVfNG$ P~, SERIES Ep O~$H . OfFSet" AC~'ouKrf r~CEM~R ~I, 19~9 sUMMArY ~NALYS,S O~ T~ANSaCT,O~S ~O~ I~9 ~OLL~= Tu~ AM~CA~ TOSACCO CO~mAHY TH~ HA~H~WAy-S~ COR~ATIO~ TO~AL CR~OIT BAL~N~ D~POSlT~O ,R ~¢TU~N~O DEm,T B~A~CE

IO~77 ~ EMpI(~y[E$1 IJ. S. ~V]NG$ BCI~, ~ERIE$ [, PAY ~LL ~CFIO~$ 1"O li~ ~ETEO ~C~.'.I~I~R 31, 1959 THiS ~CCOU~T ~¢O~S: F~OH ~p~Oy~t S~ARI~S ON ~Y ~OL~S ~ ~ H[~ yO~ OF~C[. ~4

I~AI5 - RESERVE F'CR CASH DISCCIbNTS ~CEHS[R ~I, 19~

15/~1~ = RE~ERV[ Fl~q CASH DISCOUNTS ~CE~ER 31, 195~ PA~ 2 Cm¢~,w BAlAnCe, JAnuarY 1, 1~5~ A~: pmovl~oN ~URIN~ TH~ Y~AR A~USTM~T TO ~EQUrm~O ~T O¢¢¢M~R 31, 1959 CqC~vvEs G~N~L ~O SWOK~NG. HAVanA LINE ETC ~0,I19,553.60 762,335.85 20,180,~e04.o6 76~,~0,~9 8RANOS 162,~89,60 21, ~it~, 779.~ 679,10 21,o149,~.15 ~3,~77.85 21,oIo,22~.16 p~ovlSlO~ ~Mn ~LLOW~C~S ~Y MONTHS: C~GA~mTT~S, H~v~a LI~ B~.NmS 5~KrN~ ETC. ~ C~C~S A~.L~,~NCES J~,U~v 1 ,h9%921.26 57. H0.41 7.883.71 1.938.536.2~ F~u~y T ,kki~,519.30 51 ,I*60.TT 9.305.7~ 1,51L.603.35 M~c~ 1 ,~1,8~5.05 61,382.99 I~.855.36 1.738,669.58 ~P~ 1,67j,~5~'.91 59,6~3.~5 12.582.3o 1,g~5,55o.68 ~v1,663,639,b8 71,0a7.92 16,862.26 1,y36,~91.56 .~1.886.66~.3o 6%383.80 ~o. 199 .z~% 1.92o.78~.~ a:L~ 1,819.967,31 59,1~.51 %851!.15 1,926,793.80 Au~u ,~w 1.7~6.~112.22 67.215.81 1 O. 103.90 1.853.625.83 s~mv~.s~m 1,7014.677.7~ ~,3, ~9~, C4~ 12.T13.&2 1. 796,186.80 ocwo~ 1.665,0,~6.6h 6~,449./~2 15.126.79 1,725,930.10 NOVeMBeR 1,639.618.25 86,866,09 21,661.98 1,7~2.062,66 I~c~,~. 1,738~719,1tl 50 ~4!~8,80 1%71~0,~? 1,870t986,11~ ~G

15A18 . R~E~VE FOR 0(~f~TF~ ACC~NT~3 R~EI~BLE - C~I-0@~S 1939 A SUMMAR~ ANA~Y~[5 OF TR~ACTIO~ DU~ ~H~ ~^R 1939 rOLLOW~; D~EST ,¢ EX~T G~ CAS~ N~T 956.3~ 6~.73 887.58 z~o,~53.6~ 37o,~53,61

1~A30 ~ OOOBTFUL ACCOJRr~ RECEIVABLr ~ CL~TOC4E~ - WRITTKN OfF DECE~ER 31. 1959 A su~A~ A~ALYS,S rO~ ?Hr V~A~ ~95~ ~OLLOWS: ~w vo~K, Ntw yo~ 10,776.85 C~flaOLl~kw~OTOaa¢CO ~PANy 26~,98g.~ 540.48 ~0,77G.85 7~9,~5 ~.8~,~o 1~7,~6~.~ ~9,18~89

T~A30 ~ D042E~TFIJL ~.CCC4JN~T$ RI~CEIVAB~ - CdST~R~ - WIRITTEN 0~-F OEC~ 31, 1959 pA~¢ 2 ~. L~V~THA~- A~O COMmANY TOTAL - pRIOp TO J~NO~mY 1, 19~7 ~N~RI=A~ ',*~OL~SA~E TOBACCO CO. HICKEy BmOS. R~X~ ~I~T~UVI~C CO. FR~ 8~ATT, I~C+ THO~PSO~ & ;q~XOm N~'rH~.mSO~ CIG#,R & ~'OB~¢CO CO+, INC. $. W. ~mAUS Co+ TUCSO., AR I Z~'4A 1,986.70 I~w~l~ C~m~'y CO. ~;B~T BA~A~C~ ~E~t~TION B~ dAmU~Y l. ~959 ELIMI~ATIOmS ~IT B~AmC~ ~5,697+55 15,697.55 6,578.33 1,8oo+r~ ~,,7T8.33 19%~8o~9~ 19~,~8°-9i 6,55g,z5 16,313.99 8,3o~,99 ~ mz.B~ ~3,~o8~99 2~,2~z.B1 1,969.8o 30o.oo 3~3.~8 311.18 1,67%5~ I~0.O~ 11222p72 771.18 ~9,~80.~o

I~A30 - ~O~BI-~L A~0UNT$ RECEIVAB4E - CUST0~MI~ . *~t~EN 0~F PA~C ] ~S~m~pTION Or ITEMS NIC~I~, Cyprus THOHA~ R. CAR~q~OH A/1C G6 F, ~¢FA~A~D SrC. HA~OL~ ~. HILLER Aft0 ~O~, NE~ YORK, New ¥o~ TOTA~ ~ ~U~S~OENT TO dM~U~Y Ie I~t" GRA~O TOTAL ~IT ~L~NC~ ~¢~E~ 31, 1~29 ~0,~66~9 851,Z8 35.C~ 1~8.80 368,80 100.00 100400 ~.72 ~,72 i,~8.~o 1,558.8o ~89,~3 ~85,~2 I,o53.65 I,o5~.65 ~.o2 zok,03 ~89-6~ ~89.6~ ~9.93 ~9-93 6.C5 6.o~ 37,66 37.66 5,38 5.38 Ih.16 I~,16 18.1~ 15,15 10.17 IO,IT 8.8~ 8.82 ~!06~.67 ~?c6.o7 3,38~-5~ 67,o6o~7%

15A35 - OFTSET TO DO~JST.mJL ACCOUNTS RECEIV~E - CL~T~S - V~ ITTEN OFf O~CE~ 31, 1~9 A ~UNM~Y ~NALYSlS Or T~ANSACT,O~ ~0~ TM~ V~4~ 1959 FC~6~: ACCOUNTS REC¢IVA~L~ ~'H~CH B~CA:ag b~t#TCUL OF C~LECTI~3N ~:~.16~.~h 78.767,2~ 5&:,gSo,97 D~OUCT= D~ITS OUm~ TR~ YEA~ FORt COL L ~gT I C@~$ 61,185.83 2,6~8.~6 6~. 064.69 EL I.~NAT~OSS lq~.~8.hg 8.8~7.6h ~7,7Cd,97 ~60~0~.26 1117~.~0 2TI,~70.76 4~

I~A20 - REpuI~MA~,~ AGRI~EMENTS ~ ~HORI TE~ U. 5+ TREASURY SECURITIC$ ~E~I~R 31, 1959 Txts AOCOU~T R~Co~DS~ A SUMMAR~ ANALYSI~ OF T~'~CT~OU~ ~'OR THe ~I~ 1959 FOLLOWS: ju:,- 10~ .o0,~ ,CO~ .oo 95 .CO0 .ooo .oo 38.8bo.28 AUGUST 116.000.O00.00 I 19 ,O00.000 .OO l~1¢,20~. 35 T~ ,#~ ~OT e~t~.~¢~ It. T~¢~ tIC¢OU~ .l~" D~C~H~[~ 31 , 1959. .$o

17A21 ~ SHORT FEF~M ~J. 5. TREASURY SECURITIES ~CEME~R 31, 19~9 A SUWM~R~ A~LyS~S ~ T~A~S~C~ION~ fOR TH~ YEAR 1959 ~LLe~: JULY ~ SEP~£MB~R ~

2CA20 . SUND~y ACCENTS RECEIVABLE DECEMBER 31, ~'39 (CoNTr~UED~

2Q¢~;~O . SUhD~y ACC~JNT$ RECEIVABL£ DECEN~'R ~1, 19~9 DECEMBER 23 OCTOeER 2Z DZC~MeE~ 22 D~C~MB~R ~I OZCZ~B¢~ I~ JULI ~0 100,00 ~56.63 7.O1 5.59 ~h.36 ~6.9o 179.88 P~.98 ~7.T1 2,358.~5 ~7.~ 56.83 ~8,26 193.~ 5.28 15.0~ 37.1~ 9.hl ~5o.oo 53.88 56,c8 T~.86 ~89.97 ~8.oo ~53,~6 555,c5 2.73 3~.97 556.T~ 37.~6 45

20A~0 . ACCOON~$ R~CEIVABLE - OFFICES AND EMPL0~EES DD~E~CBER B1, ~959 TH~ ~IT ~ANCE Or X*fS A¢~O~I ~EPR~SENtS T~ ~MOUNT OU~ rno~ OF~tC~S A~ ~H~LO~S,

~txl~.R 3~, 19'39 TM~ ~al~ ~AL~NC~ ~T ~C~HB~ 31, ~959 I~ CO~PO~ OF TH~ rOLLO~IN~

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2OA~O ~ AOVANCE$ TO SALE~N ANI) SUERVr$OR$ DECENER 31. 1959 REGULAR SALES ~A~I~ATION A~SI~feMENT ~W~ OF ESmL V~ D~T~ O~ AOVANCC AMC*U~ E21+5 E. R. ~NY 12/29/59 350.00 {2~7 a.J. co¢¢~Y 12/'29/~9 I~5o.00 ~ M. ~i~CME L k 12/29/~9 ~50,CO E~ ~i K~LMAN 12/29/~9 250,00 E2~1 ~. F. OLIV{I~A 12/29/59 3C~.oo E252 M. tCVINe 12/'29/5x) ]00.O0 E~53 R. G* S¢I'J4ALZ 12129/59 300+00 ~5~ L* Bi ~lBB~l~ iI/2~/59 300.CO E2~SM ~. d. SrC,L,AN~ 12/Z9/%39 hs0.O0 ~256 ~. B. ~A~MAL£. JR* I2/29159 300.00 E258 F. ~* LO~EY 12/~9/59 3oo.o0 ~61 G.G. S~ross ]~/'a9239 ~0o.0o E~6~ B* ~AVET I ~i~/~ 9 ~OOiO0 K263 G, C. O~RZY 11/18/59 400.00 EH6hM P* ~. I(LE#NHAN~ I~/~9/59 ~50.00 E266M F.I. S~LO, I~/~9/59 ~50,C0 £267 J.S. Pa~RURO IS/29/~9 ~5o+cm E268 R. E * w, t~, I ~/29/59 ~50.co £~71 ~. R. Z~K I~/~9/59 350+~ E~72 K.J. Bu~cz~ IZ/~9/99 ~oo,00 £~73M t. ~oB£Y 12/29/~9 ~50.co E~7~ R~ ~;. CEi.EMTANO 12/29/59 ~o0.00 E~75 J. C~,wm ) 2/29/59 ~00*00 E~76M JOSEPH v~cc,,o I~I~9159 ~9o.oo £28 R.F. DR~CO I~/29/59 250.c~ £~81 W.H. M~,T{L I~/~9/59 350.00 E~8~ T.M. TuMiN~O IC*/21/'~9 3~0.OO ~z~83 b. J, M~O~T~ I~I~9159 35O.OO E2~1~ d.J. G~TTI 1~189/99 ~o0,00 E~87M C, O.e.~vw' i~/~9/99 l~5o.oo E29 A.J. c~PoZZoLI 12/~9159 300,O0 E~91 %~I LL I ~W ~.i~ KfNNA I ~/29/59 350.C~ E~92M R.J. BAYR~2N~ 12/29/59 kSO.O0 ~293 J* R* OIA~OSTINO I~/29/59 ~00.O0 M~,~. surer. 1.2 L. ~. COll, 12/29/59 500.0~ Ass.% vo v~¢ (CO~T'NU£D)

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2OA~O - ABVA'¢C~$ TO S,%I~N AND SOF~FCTLSOR$ PAce 7 ~* C, AMO~ L~A~O J~Z~ Co~o~s ~, L, J,~N[TT T. A. STULT~ O* L* B~[TT J, A. D,×O~ 18/89/59 12/29/59 12/~9/59 12/29/59 ~/z9/59 12/~9/59 1 ~/29/59 1~/~9/59 121~91F9 12/~9t59 ~z/~gPo9 lzlzgi59 ~z~9159 Io/26159 12/~9]59 ~2/sgY59 ~I~9A59 I~129/59 )~/~9~9 1 ~I~9159 I~/Z9/59 ;~/29/59 )z/~9159 1~/~9199 12/z9/59 1~9/59 ho0.~ 250 .':;~ 300.~1C 300.~ 300.00 350.0o 25o,oo ~,oo,co ~oo.oo ~)oo.oo ~oo.oo 1~00.~ 350.OO 300.~ 31Xl.C~ 3~.00 II00.~ 250.~ 1,00.~ I100.00 ~5o.co hCO.CO ~co.co 300.~ ICo~Tq~uto|

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~OA~0 - AOWANCE$ TO SALE~N AN[} SU~R¥1$C~$ ~M{ER 31. 1~9 P~C~ 10 RegULAR ~L~S Om~AN~ZATIO~ ~S'CNMEMW N~E O¢ EMP Y¢~ ~ or ADVA~C~ AMOUN~ $30 J.K. ROWA~ 12/29/~9 ~50.C~ $301 R. ~. RU~O 11/I?/~9 b00.O0 S3{~>M B.J. ~Mp~.~q'ON 12/29/b9 400.CO $303H B.A. BUaLESO, 12i29/~9 400.00 ~3o4 B.o. S~,T. Tm~9/59 ~5o-co $30~ W.R. M~vcil. dr¢. 12/29/59 450.00 S31 R.H. ~C~ZR 1~/29/59 250"0O ~311 d.C. R~O 12/29/59 350*0° S312 E. £. Huvc.~.so~ 12/z9/~9 ~5O-c° ~313 P, B+ hur~ 12129/59 ~50.O0 S315 Ro~o ~¢. d~c,so~ 1~/~9/59 ~50.°° s31 ill D. ~. B~s, 1~/~9/~9 h50.00 s3~ c.~s,~u R. youN~ 12/~9159 2oo.c~ $321 @. L, M~i~oOR I~/'~9/~9 ~CO,OO ~322 ,I. II. Hiu~A~ 121291~9 J,~o.oo s323 M, L. l~u~v 1~9~59 ~5o.oo S3~M d.C. C~OW~L 12~9/59 ~50.00 $3~5 o. i). H~,so~ 12/29/59 1~50.O0 s3~6 w.H. 8~c~s I~/~9159 1~50.o0 $327 W. ¥. ~OH~'ON 12/~9/59 liO0.o0 S328M c, B. I¢,:zv I~/~9/59 hSO-O° s33 ~. R. Hv,~ I~/29/59 3O°-°0 s331 o.H. S,wM~ 12/29/~9 ~50.c~ $332 W.w. ~,e~ I~/~9/59 ~50.c° s333 w.P. ~,v,. ore, 1~131/~9 ~5o-c~ $334 ~. $. MON~O~ 121~9159 ~50,°0 s335 s. ~c~, 12/~9/59 35o.c~ SB36M hr. O, Bo~. d~* I~./~9/~#9 450.O0 S337M B. V* WI~=LIAM~ 12/~9/59 h5o.°o $338 c.E. HU~HCs I~/z9/'59 35o.c° s3~ ~. B. BovTo I~/~9159 353.~ $3t$1 ~. B. LIWT~E 12129/39 1500,o0 $3~3 p.d. BEATv ~2/Z9~59 bOO.e0 s3~.9 Fc. d. P~u,a 12/~9/59 ~5o-°° ~3~,6~ h'. A. GOLO 12129/~9 ~OO.oO S3LSH C, d. LiNmE~ER~. am. 12g~9~9 hSo*O0 $35 it, A. @~AVES 12/~9/~9 200.00 ~35~M B, a. Ko~m 12129/59 ~,oo.oo $353 d. o, ANASO~ 12z~9/~9 45o.o0 $35h ~. K'. ~oo~mo 12129/59 ~51.oo ~355 K.L. Garcmv 12/29/59 hSO.Oo ~36 d.N. RONCO I~/~9/59 250.00 S361 d.O. B~a~o. Ore. 12/89/~9 ~5o.oo (CONTINUED)

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20~jlO - A~ANCE$ TO SALES, MEN ~NO SOPE~'%'IS~St~S ~Cf~:~ 31, 1959 ~EGULA~ SA~S O~ANIZAT~O~ C213 J. GmAL~a I ~Z~9/59 3oO-c° C214M d, a. tuT~ 12/29/59 3OO.00 ¢215 R.E.A.oE,~SO~ 12/29t~59 l, CO,OO C216~ d. P, CULL*r~a~ T2/29/59 ~CO.O0 ¢21T t). J. CRET,~N 10/23/'29 l;OO.OO C22 ~t. C. ~'~CK' t2/29/5~ ~53.co C221 W. P* G,~mm;,c,H~ 12/29~9 300,00 C222 G.d. HOODEK 10/1~39 300*o~ C223M c. I~N~ Lt~ 1~/29159 hO0.O~ c22~la C.L. PA~ 1~/29/~9 ~00.o0 C22~ C.t.* HINES..JR. 12/29/59 300.00 C232 w.C. F~r~s 11/~5~9 3~0,00 c233 It. L. M~..*~T 12/29/59 350.00 C~3~M E. TAmACFOU 12/29/59 400.00 C23~M f:. P. C~mo 12/~91~9 400.c~ C~36 O. $. ,~.¢ 12/29/'39 ~O0.C~ C~37 J.T. ~so,~ II/20/~39 ~o0,o0 ~4 O.K. Ca*,T 12/~9/59 300.O0 C2:~]M W. A, Hr~mteH~ 12/~9/~9 logO.CO C~42 R. d, Rmv~o~s 12/~9/~29 i*oo.oo C2~3 c.I.. ~R~,.wooo 11/19/~9 ~¢o0,oo C241~ R. ~. 0~ueco~u~ 12/21/59 89.61 C21~5~ H. £. K~R~m'~T~iC~ 12/29/59 400.flO C~5 D.W. N~L~S 12/29/5'9 300.llO c~52 a. ~t. d~,z. o~. 1~/29/59 h~.oo C~53 L. E* fl~I'~.A~P 12/29/59 ~CO.OO c25~ A.O. Gu,~u~ 12/29159 ~00.0o c~56 ~. d. sc.:~ I~/29/~59 hoo,o0 C25~M J* m. Sc,i~m~ 12/29/59 400.00 C2~ R. ~* HEa.N 18/29/99 250.00 ~61 o.r. ~LL~m,~VT~ I~/29/~9 250.00 c~63 o. l~m~aN 12/29759 300.00 c~64 N.H. V~m~i,~ 1~/~9/59 300.00 c2(~5 d. sc,w~,~ 11/I 3/59 30o.o~ C266M R.E. Soc~zm I~129/~9 h~.O0 C26TM L. @* B~nC" I~/~9/59 ~.oo.oo C~68 J.W. w,~:,~us Ia/29/59 300.00 c87 ~. d. COLLO~O~ I~/291~9 300.00 C271 d. P* M£mSING£R 10/26/59 400.~ C~72H B, ~. copcca~o 12/29/59 400.00 c273 V.L. cu~ 1~I~9/59 ~.00 C~7§M J.C. ~TU,~ 12/29/59 ~0~.00 Mos~+ Su~v. C8 T.A. SCW;~'K~mT 12/29/59 350.00 ~E~ ~Ut~V. C~ CHARLE~ J. ~Amo 12/29/~9 2~0.00 PA~E 13

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2OA~O + A~ANCE$ TO SAMSON A~ SU~VISOR$ ~CEMB~R 31, ~9~9 PAc£ 17 ReGO~R SA~S OR~ANIZaT'O~ ASSIGNMENT A~ OF EMmLOy~£ ~ AHO~T W184 G. ~. SUTTG" 18/29~39 ~50.~ MOS~. ~UPV. W1 B* P, pATTIS 12/~a9759 2~.00 SECT, ~L~m M~R. G.W. ~YE I~/29~9 2,~O,OD ~01 C. I.. W.,T~Y 12/~9/59 ~00.00 ',#202 T. WS~ 12/29/59 ~50.OO ~ao3M J, m. HAWKI~S 12/29/~39 ~O0,OO ~5 O. F* Roy 11/~0/59 ~5O.CO '¢a11 C.m. soe~ q~/~9/59 I~OO.00 ~,'~12 o.E. F~L~aC~ 12/29/59 ~.00 ~I3 J.C. BENmETT II/~3/59 350.OO ~17 J. H+ ~T.~m, J~. 12/29/59 500.C~ W~18 J.P. O'H~R~, JR. 12/29/59 550.00 ~,~ #,, J. O~H 12129/59 300.oo W'a25M ¢, C. H~. I~/~9/59 5°0.o~ W'~37M c.A. T~,~ 1zlzg/59 ~O0.OO ~ P. A, S,~m~, Ju, 12129/59 6k2.0~ ',~bl R. ~. J~eo~ Is/~9/59 350.00 ~II~ W.E. Co~e 11J~159 350.00 ~'2~6 R.A. IRi*~ 11~9 bS0.00 W2~7 F.L. coem 121~29/~9 ~!00.00 WkSl A. ~. ~is~ I~I~9159 5OO,~ ~52 E.E. F~i~L,P: 12/29/~ ~50.OO '~m53 ~. J. ~C. 12i29/59 5OO.00 ~¢~5~ d. G+ TR~YI~ 12/~91~9 5oO.OO ~55 J. ~* Mem:e~, J~. 1~/29/59 5OO*C~ ~56 R.F. N,s~scu~. 12/29/~9 500.0C ~257M A.a. Cm~.~sco 1~/'29/59 450.00 IcO~TINV~O)

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20#.]*0 - ADVA~E$ TO ~LE~IEN ~tND ~UI~RVI$OR$ DECEMBER 31, 1959 pAGE 19 RE~VLAR SALES ORO~IZATION AS~tGNHCN~ N#tM~ OF EM~OyE~ L2mT~ or ADVANCE 'a]SbM C.H. BRANt. T2/29/5"9 W355M C. T, ~,¢~Ommkeu t2/~9/99 w3%M R. ~. ~s~ 12/29/59 NOSE. ~UmV. '#3 J* J, V~mm~sco 12/~9/59 Mos[. Sopv. W3 R* W'. BRANT 12/'29/59 ~,s~. sorer, ~43 ~LL'aM r. r~WS t2/~9159 $P¢¢, ~Em* M.M.5* B. F, Com~ovA 12tt2~/I~9 ~PEC. REIn, ~.M,S. J.M. G~ar 12/Z9/59 BPEC. R~P. H.M.S, T* E. Kuur~mEm 12/29/59 ~mEc, REP. M*M*$. ~. )4~LI. ImRttKI~ 1~/'~9/~ ~t'~¢* REp. M.M.$. W.P. R~¢£ I~]'2~tz~9 s~e¢. R~. H,~.S. E, d. s~um,s i~/29/59 SmE:. ~P, N,M.S. A. T~¢ON 11Z'19/~9 ~,mEc. REP* H.M,~. d. TOLEOO I~/~9/~9 $19 L, V. 'Picc~o,~ 12/~29/59 $I 91 W. A. SA~TO. ~ I~Z~9/59 ~19~ R.T. Curi~mR~Z I~/~9/59 TOTAL AMOU~I~ 5oo.oo 500.00 500.~ ~oo.00 1~O,00 1~o,oo I~O,CO 150.oo 150.OO 190,OO 150.oo T5,oo 150.OO 150,OO 250.00 500.00 500.00 B. C. AL~dR~N J. ANsmou~Y R. AMmRIZ G. d. BLUME~H~L R. E. BOmOERS H. L B~rORO ',¢. $. B~OOy R. E. CLU~E ENEMA LlU~ I~RS ~ e/~9/99 ~o/~6/59 ~s/eg/59 1~29/59 ~/~9/59 ~e/eg/59 12/29/59 i 21~9159 12/~9/59 ANOUN~ 300.00 750.00 1,~.00 500.00 750.00 50u.Oo G5

20A~O ~ ArTJA~CE$ TO ~H~4EN ?.NO SUPIERVtSO~ OCCCMB~R 31, I~9 pa~¢ 2O N RAL IN~ I O.A m~ ~T~ OF A~VA~C~ ~2/29/59 ~z/29/~9 ~z/29/59 12/29/59 12129/59 12129/59 IaI29159 12129159 12/29159 ~2/29/59 12/29/59 12129/59 12/29/59 1~/29/59 Iz/29/~9 Iz/29/59 12/29/59 12/29/59 ~/29/59 12/29/39 12/29159 12/29/~J9 t~/~9/59 12/29/59 12129159 12/29/59 12/29/59 12/29/59 ~2/29/59 IZ/~9/59 12129139 12/29159 12/29/59 ~/29/59 12/29/59 121~9/59 12/~9/59 12129159 12/29~59 12/29/59 12/29/39 : 21~9/59 12/29/~9 12/29,t~9 12129/59 7~-0o I,~,00 1~0,00 600.00 1,000,03 1, C~O~O0 75O.0O 1,000.00 5oo.0o 6oo.0o 500.00 20,3 .co 500,00 1,o0o.~ 500.00 ~oo.oo 700,00 75o.00 600,00 700.00 1,000, O0 5~.00 1,030.00 500.0O 1.000.03 (50.0~} 75O,O0 750.00 750,oe 7~o,ce 500.00 750.0~ 300.00 5C~O.00 l ,oo0.00 1,000 .C~ t~00 .oo 750.00 [CONTeNU~OI ~G

20#,40 . AOWAR~.E$ TO F,,'kLE~4EN AND $~RV]~,~3~ 0~¢~ 3I. 1959 PA~E 21 NAM~ OF Mm~O~ E* N, NATOLI N+ G° NIgH R, E, 01CO~m~LL 5. ,J. ~AUt. • I. H+ PO=TOm G, L+ RIOhlC~ R* T+ ~C~U~TZ H. ~. $~I'¢H H, 1"+ T~m~l E. M. TOTT" ~/29/59 +2/m9/~9 I z/mg/~9 +z/29/59 i z/zg/~9 1z/eg/~9 + ~/a9/59 T~T~L 5~,~ I ,O00,O0 150.~ 750,00 2*O00,OD 150.~ 150+~ 1,000+~ 500.~ ~50,00 1,000,00 ~§0+00 I,~+00 7oo. o~ 300.00 7oo.~ i+ooo,oo 700.00 300+00 i,o00.o0 79o.~ 75o,~ 1, O(~).OO ~00.O~ 6OO+~ 700.~ I~0,O0 I~0+00 ~O0,00 150,0~ 1,000.OD 600+00 ~,000.00 700+00 750,00 600.00 8~ I0~ O0

O0"O~L 00"000" ~ 00*O~l 00"00~ 00'000 ' L 00"00~ O0~00L 00 "000 ' t 00"000' ~ 00"00~ 00"GO~ O0~00L 00"O0Odl ~.NClO~y 6g/6~/8 L 6g/6~/~i ~V~I~ *~'~ aN~ ~l1 VNV^VH ~3~IIM='~ *p "~ ~OZ~nH "H 6~I ' L~ ~3~1~3~

2OA~ - A~ANCE TO ~TER J~ ~H~IT~R, INC,, R~R ~IEVCLClpt~IENT £~EN~E - ~NSTFTUTEO TIIEIt~C~ ~955 M~nT~ A~'~ DU~ ~UaR~LY ~ O~ 10~ 0~ p~R d, ~e~tW~IT~R~ INC., ~T ~,~L~S O~- ~I~O~StI~UT~O TO~C¢O* A~VAtlC~ TO P~T~ d. ~C~W~tTZ~r, ~tl¢. 3~3,o~o,oo

2OA60 - A0VANCE pAY~4ENT$ FC~ LEAF', $t~PL~E$, ET CET[RA oEc~i~e 31, 1959 TH~ ~e~l¢ ~ALANCE OV T~I~ AccouNT R~R~SZ~VS CA~ AOVANC~ VO TH~ MEn'CAt GOL~e~£ or VIrginIA vo~ "927 . IHp~OV~NT~ O~ ~DUCT~

20A~ - ~.~ WATER A~I~ OTHER D~IT$ ~[C~ER 3~, 1~9 T~ ~B~ ~LAHC~ OF TH~S ~C~OUNT eEpRES~TS ~OONTS ~ ~P~ WrTH VA~I~ C~PA~ES, ~OWRNM[~T T~rs A~COUNT ~ZCO~ T~ ~£e~T ~AL~C~ ~ D~C~M~R 31, 1~9 IS C~POS~ OF ~ rOLL~IN~: ~ ~T NO. 1~ ALABAMA p~ C~p~Y ~ ELECtRiCIty OF OUR e~ ~ ~ROPOS~ ~C£1VKP ~R~ ~ D[~ OF ~0,00

21AI0 . DtVID~05 REC[iVASI~ OECEYe[R 31. 19~9 THC At~[RI¢*.N TOI~CCO Co~t.y J. 'd,:~ ~ 5ONS. L~ITCO DCB~T I~;*tJ*NC~. D[C~M~¢R 3t, 19~9 . O . ~OO,0OO.00 1,259,BOl.36 1~9,3m ,36 1,659.3Ol ,36 . o .

2~A20 - I'~TEREST R~CEIVAB~ ~CEMB~R 31, 1959 9,~6T,}O ~B7.5o 1~.17 ~.3~

21A20 ~ If~fER[ST RECEIVABLE pA~ 2 ~.59 200.00 ~4

21A~O - ~$1TS ~AB~ ~M IHSU~NCE ~ANIE5 ~CE~R 31, 1959 ICo~Tr~uE~I

21A30 * O[~ITS RECO~RABIE F~ INSU~NCE COMPANIES ~CEMBE~ 31, 1959 PAc~ 2 0~B~T B~LANCE JANUAry I, 1959 165*Z~T-~5 7RANSF~m£O TO ACCOUNT NO. "~5 -- ~Iv BALANCE ~¢¢MBE~ 3G 1959 70,o77.25 ~PosrT F~ CON~EREO TO eE R~COVE~A~LE AR~ A~ rOLLOW~: J*NUARy I, 1962 4~,893.~ d~vA~v I, 1963 U~E ~N~ C~CU~A~CV I00~ ~UTU~t HUTU~L 81,795.37 ~4,611,20 ~,18M17

21A3~ . MISCELLAIX~00$ ACCOUIC¢5 R~C[IVABLE DECKER 31, ~9~9 THL~ ACCOUNT RECO~DS:

21A35 - MISCELLAHEOL~ ACCOONT$ R~EIVABL~ t~ECEUlB[R 31, 1959 pA~E 2 6.77 ~31.76 9~.96 44.~o9.~7 1.156.95 I04,06 69.35 55 .oo ~4.31 52.75 28.05 193.87 ~l-TF ~o6.58 [CO~TINUKOI

21A~ ~ HISC~I.LANEOtJ~ ~¢OIINT5 RECEIVABLE DECE~ER 31 * ~959 PA~ 3 I~ - VARIOUS TRA~SPORTAY~O~ ¢OHPA~IES ~R~ A. GAR~AT~ HR* G, C~ LO~KIN NR* F, C~ARK ~6.10 270,O8 16~.60 33.25 ~5,TO 67.5~

21A50 . TRANSPORTATI(~N CLAI~L5 DR3~2~R ~1, 19~9

21A50 . TRANSPORTATION CLAIMS DEC848E~ 31, 1959 PA~E 2 2 . Cm~OIT~ fOR: COLL¢CTI~S" r~ ~.~OUNTS COL~¢~O rR~ ~A~nl~ ~ ~TTL~1~T O~ CLaimS rlL~a ~1~4 ~4~N. WA~EH~U~ DCrAR~£~ CLAIM N~R ~OUN~ AU~US~ 25 53957 - w11~3 $ 63.83 Au~u~ 27 5~o3~ . w1280 33.65 s~u~ 15 5hI~9 - w1305 15.37 Oe~OS~. 8 5J~9~ . W1536 71.88 Ocvom~ 22 5kh39 . w169~ 80.~9 ocroBc~ 29 5li~8o - wITk3 19.39 Novcua¢~ 9 5k500 - wl~I7 3~.56 Novctas~ 9 5~501 . WI~I 9 8~.~9 Nov~ee~ 9 5~5~ - ~I~O 35.53 UoveM~a 9 5~503 . './1360 1~,~9 Nov~'~s~ 9 5450~ . W1511 ~0.41 Nr~v~8~ 9 5~511 . W16~8 h~.10 NOWise, 12 5h55~ - W181fi 150.3~ gov~¢a 13 5h5~5 - w1659 68.39 Novz~¢a 13 ~I;~1 . WI?~I h3.~ NOV~H~C~ 13 5k562 . WIT~ h6,61~ UoVC~a~ I3 5h563 . w1761 15.~8 N©v~a 13 51,56I~ . w1765 10.98 Novc'~,~ 13 5~566 . W1772 6.~1 Nowise. 16 5~570 . Wlh60 3~1.62 uow,,~. 16 5~573 - W1576 669.~ Nov~oea 16 5~575 - w1705 I~o.95 Novc~z~ I~ 5h576 . W1712 12~,rrf Nov~.S~ ~7 5~585 . w~795 69.75 Nov~ 17 51~591 . W1830 1~.OO

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21A~0 . T[CA~PORTATION C~I~ D~CD4B~ 31 * 19:39 WAR~HOUS~ ~PAR n~V CLAIM M~SEa 5h706 --W~9~h 5~707 . W~952 54708 - W1953 5~709 -- W1959 54710 . w1960 5~T15 - W1599 5~718 - W1707 5~TI~ - W18eO 5~7~ - WISe1 5~7~1 . W18~2 5~T~2 - Wl~a3 5~723 - Wl~ 5~72~ .WI~5 5~?~5 . W1826 5~726 . Wl 9~t 5~731 .W~591 5~732 - WI?~3 5~733 o W17~5 5~73~ . W~7~6 5~735 - W17~7 5~736 . w1762 5~738 - W1871 5~739 . Wl~ 5~7hl .W~O12 5~7~Z . WZ~n3 547~3-W20~3 5~7~ - W~061 5~7~7 - WI7Z6 5~7~8 . W2OO9 5~7~9 -W~509 ~750 - ~513 5~51 -W~556 5~75~ - W1559 5~753 - W1561 5~75~ - W156e 5~755 - W1606 5~758 .W~C,I 5~759 . W~C% 5476O - WZOI6 5~763 - W1565 5~76~ - w1566 5~765 - W1660 5~766 - W166~ 5~T67 - W166~ 5~768 . width 5~773 . W1798 5~77~ . W1836 54777 . Wl %9 5~778 . W1970 5~781 - W1980 ~ouM~ 32 ,~6 2h ,58 37.~8 310.O3 111.75 230.51 98.~O ~9.91~ I~.$0 98,~! ~55,~3 97.O7 55.58 I~9.20 77.68 Io.6~ ~3.99 31.87 ho.76 23.83 7oo.5~ ~7.58 19.6~ 5.58 %75 67.8~ ~5,5o ~9.86 ~5.o6 25.~ ~3,35 ~3.07 ~o5.39 ~.95 6.h8 9-73 ] o/~,o ~3.38

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2~A~O - ~$PORTATION CLAIM$ OECL~4B~'~ 31, ~9 Ts~^r t't c D~pARVM¢ ~T D,~t~ 1939 C'~LtM N~:~,~,~ D~CEME, E~ 21 5~4 -- V2112 O~C~Se'~ 31 5~SC[1 . T211~ TOTA~ TSlAr~IC D~pA~.~T CLaiMS ~tL~ B~ R~C#,P I ~AULaT,O~ O~BI• SA~NC~ DECCMn~R ~I, I~29 17~77 * 25.61 $ 9~ .28~.9o 836.o~ 532.h8 25.61

21A~5 . INS~JF~At~:E C~PANy CLAIMS OECE~'eEF~ 31 • 19~ Tt~ ,~S~TS LO~T ur~r~ T~E T~ O~ I~E I, OI. IC~"' C~L~CT~O~II ~ C~LLE~TIO~S ~C~IV~O [~ ~£TT~£~T O~ ¢~I~ ~IL~.

~o~zzzzzzzzz~ ~o~zzzzzz~zz~z~zz~ ~oo~oo ooo oo o~ ~m~mm~ mmm m~ m~ m o cote, ~ zzzzzzzzzzzzz~zzzz

~IA~ . I~URAF,~E COb~ANy CLAIHS OEC~SER 31, 19~9 PA~ CLAIM N~BER ~2 ~3 44 20 ~75 45 AHOUNT 1.74 16.~6 I0.~0 3,53

21A~7 - IN~CdRANCJ~ CLAt~ - ACCI3~J~TED ~$ ~C~MBER 31, 1959 THE~ ~A~ ~O ~L~¢~ I~ THIS ACCOUNT ~ D~C~H~ 31, 1959,

2]A60 - MISCELLA~OIJ$ CLAItlS ~C[~R 31, 1959 A SUMMAry A~ALy~I$ O~ ~aFI~ACWlO~ I,~ TMIS ACCOU~'F FOLI.~,WS~ Ih3.85 ~,16)#.9q ~.805.~I 9~8~76

~IA70 ~ F~ODRAL TAX ¢~I~ OEC~ 3~, 1959 THE ~EBIT ~ALAN~E OF T~18 A¢~OU~ ~EPRCS~NT~ TH~ AMOUNT Or ON~OLL~CT~D ~LAI~$ ~IL£~ ~IX~ T~E ONIT~ I ~=e ~TS FOR: ~e~ or~T ~o ACCOUNT NO. ~2~A~2 - pROW~O~ ro~ r~O~L T~X ~L~.~ Y~AR ©F TAX O~T~ ~IL~O T~P~ OF CLAIM I~5~ FEO~AL EX~S¢ T~X O~ I~ 1958 ~L~, L~^~H¢~ ~OOD~. Cm~mIT B~L~CZ O~C~ER If, 19~9 CLAIM ~IL~ ON B~H~LF OF= AMOU~ OF ~L~I~ ,095 ,OO

ZIA72 . pR~I$10N Fi~t F~AL TAX C~ ~$EE ACCOUNT ~. "21A70 _ FEDerAL T~X ~C~N~l' ~O~ O~TAIL~.

21A80 - INTFy~IAL REVENUE EXC~SE IA× CI.AI~,S D£CEMBER 31 , 19~9 T~E O~I~IT BALANCZ ~T D~C~MI~R 31, 1959 ~ Co~po~O O~ TH~ ~OLLOWING:

21A~ . ~IJTy ~A~#.CK C~IM$ ~¢~m~R 31, 1959 9~

21A~O . ~Ty fI~A~CK CLAI~ pA~E 2 ~OSS AMOU~ e g~enu~nY ~5-812651 3.17 ~ CCNB~R ~-I 5~4 1,8~4,1~I 5-16oi 3o 836.2a Ap~EL DH~-I f~075 1,453.~ dune OJ5-178077 789,55 J~LY 0~1559 46o.5h AOO.usT 12 021385 19~.g2 ~-I19933 64.05 $~pTKMSER ~-I~IO~A I~.23 12H 5-1717~ 1,2~I .~ Oc~oB¢~ C-OC~:~)g 81 .o5 ~5-8169o8 7,775.38 De~ 8169C8A 1,386.90 t~¢~M~R ~O 264.10 HZ-1516~O 66-~7 ~OUNT Or ~Y~L¢ TO ~BL~ TO ~ ,668.97 75~.6o 1~5.36 ~,3o8.18 78,95 71o.6o 1%87 ~78.75 6,~ 57.63 ~9.85 178.38 1~5,18 1.126.8o 8,1~ 7z.9~ ~77.55 1,597.83 138.68 1,~8.~a 30,85 277*66 25?,66 59.92 9F~

21A~O = DUTy (}3tA%~BACK CLAIMS ~CEMBER 31. 1959 F),()

21A~ - DUTy I~AR~ACK TO ~ I~kAIVIEO ~t~BrR 3t, 1959 T~¢ D~,T ~A~C~ or V~l~ ACCOO~X ~V ~¢~ 31, 19~9 I~ ¢OMPO~O OF THE fOLLOWIng: O(s

~CE~B~R 31, 1959 5~ ~ ACCENT Or O* $. ~VY ~P~S ~TO~ O~rJCE FOR ~UT~ D~A~C~ ~P~LICA~L~ TO o~s*r ~,.c~ O~c~.n~R 31, 1959 ~5~.67 pA~ 2 10!

21A~ - DUly ~A~ AND ~H~$SION THE~ON ~¥A~-E TO OT,q~ ~c~n 31 , 1959 :O~L~CT~O~ O~ C~INS RCCOR~ IN ACCOaNT NO. '~IA~ - ~TY O~B~CK C~I~~ ~Ty ~¢K ~0 e~ C~IMC~ ~WBLC UPON COLLECTION TO A~L~IS O~ ~¢COU~T NO, ~1~ . ~Ty O~¢~ TO ~ C~I~C~~ ~CCO~NT NO* ~A~ - ~?y ~C~ Ct~lX~~ I.~o5.89 i ,587,77

21A~ . ~F'~L CLAIH$ ~ THO~E ~¥ABLE TO OTHER5 ~ COLLECT~0M [~ECEMBER 31, 1959 D~TE o~ AMOUNT TRA~mOm~tON C~tHS TH~ pU~HAN COMp~N~ AU~U~ NEW yORK ~o ~C~OND, VL~t~, pUR~H~S~ ~OR

21A~8 - DOLq~TFUL CLAIMS OR THO~E pAyABLE TO ~HERS UPON COLL~TI~ OECEM~ER 31 , 1959 pA~ 2 JULY OCTOS~m L~ 0~C~MB~R VARious EXPL~NATIO~ NCW yOR~ TO MIAMI, FLORI~ PU~CNAS~O ~OR ~NO F. X. WHELA~ ~W yORK TO BA~IMOmE, H~mYLAN~. pURC~AS~O FOR MR. ~OR~ RU~N~C~T. U. ~. p~F~I~ LI~HO~m~PHING C~Ny UNI~Cm ~Im LIN~ MR. MArcus GLA~m OTHER CL~IHS ~MOUNT D~T~IL~ MalN~EO S~ P~ ROLL O~Pa~TM~T OCBlm SALA~C~ D~C~MB~R 31~ I~59 ~MOUNT 113,~2 ~.08 15 ,71 193.~ 99.77 lO.6~2.07 3ae.6z

21A~ - OF~ET IO ~TF~L CI~I~ CA THDE.E PAYABLE TO Ol'H[~ U~ COLUCCTI~ C~IT ~.~LAN¢~ ~[~,E~E~ ~I. I~:~9 (~ET~.~ ~ A~C~J~T NO. ~I~

27A30 ~ FINI$~O ~ r~C~R 31, 19~9 ~ o~efx ~LA~¢~ or ~IS ACC~T ~PR~$~NTS TH~ I~TO~ ~ ~ NEW yO~ Orrl¢~ BOOK~ OF ~STI¢, (C~TINU~O]

Cr~CE~ER ]1, 19'~9 pA~E 2

f~ ExmORT E~PORT COHZ~TI¢ -- GENE~L LINZ EXPORT . 6¢N¢R~L LJN~ N£W YORK Orrl¢¢ sTOCK OCSlr ~U~NC{ O~C~.S~ 3] , 1959 27AI0 . FINISHKD GO0~ ~¢£'~E~R 31 , 1959 oa.~ 6Jq2,~7.96o 1~3,786.~0 813,1 ~1-13 3/8 3~ L7 ,N2 1o2,18g, ~7o 6,128.5~ 15.~35 ~G~ 5 $18,262 ,o~8.6~ ~1o,863.71 636,784.83 3o3.~I 66,683.38 3,610.19~.73 538,128.91 ~7.0h5.31 ~08

2TAI~ - FE~AL E~I ~ TAX ~ FI NIXED G{~ ~CE~R 31, 1959 TM~ ~E~IT ~=~ =~ ~l~ A=COUNT R~P~CS~NTS T~ rEd, reAL ~XCI~ ~AX APm~A~I~ TO T~E FINI~ A~O A~C~ Nm~ ~O1 - CO~T Or ~L~ ~ Cf~R~~ ~Om r~£~ ~XCI~[ ~X

27A1~ . FED[RAL EX, CISE TAX . FINFS~i[D GOO~ nCCt~R 31, 1959 SMO~IN~ 811 ,~1 5 ~/~ ,10 PER LB. Twls~ 47,~02 ,10 P~ I.~. C1~ - CcN¢~L LI~E CLASS ~ 37,~ 2.~ Pc~ M CLA~S 6 I ~,824,2~0 3.00 c~s c 9,567,27o ~.oo c~ss C T2 ,73~ ,~5o !o.cm ELASS r 2~ .9~0 15.00 HA~N~ LI~ c~ss a 550 7.00 CL~,:~S ~ 1,366,7~0 10,00 CL~Sa ¢ 3,61~7,635 1~.0o *e5,888,363.36 81,196,T3 ~,75o.~o 59,h7~ .75 38 ,~53,o8 .75 3Tb-25 3.85 ~ 3,667,5o

27A35 . CO,l~il$~lllO~ OH LEAF FURCF~S~ ApPLIC;II~LE TO FINISHED o~ 31, 1959 T~ O~eIT ~ALA~C~ O~ TH~ ACCOUNT ~EPR~SEN~ CO~IS~ION O~ OO~E~TtC CE~A~ LEAr pURChASeS C~A~GED ~O THiS AC~OV~T R~¢OROS~ ~A~U~C~U~O ~OCK ~O~ -G~L LINE ~I~AR~,~ ~E~ H~TH~-~ OPENIN~ BAL~N~ TOTAL AVCRA~ QUanTiTY V~L~ .o66760 78,193,997 5,z~o.2h

27A38 - CtGA~E~E ~O~S D~E~ER 31• 19§9 ~¢cOUNTS ~ e~CH ~OO~. C~OIX W~AT ~W 150 ~V~S RIZ kA CmOtx ~50 L~Av~S 0~T ~A~A~ ~E~ 31, ~9~ ~U~NTIT~ T~OU~A~D ~35,57G ~T.~fl?95~ ~.3~3.83 3,a fo,5~8 11.~8795a 56,5~o.F3 ~8,a~B 1T.53~95 8~6.7o

27A~O . INTER~AL REVENUE TAX . CIGAF~TTE BCOKS ~CEh~ER 31, T~9 T~ O~IT OAL~C~ ~T D~C~ 31, ~ IS CO~mO~D or TN~ FOL~O~ VI~INI~ Bn~NCH L~ CRO~X ~EAT ~TR~W I~O L~VCS R~Z L~ C~O~X 150 L¢~VtS R~Z L~ C~O~X 1~O LE~WS R~T¢ O~ TAX PER THOUSAND 15.oo tS.oo 3.2?o,5~8 15.co V~Lu~ ~,775,9t 72~ .~2 ! I,q

T~¢ ~CBI~ ~ALANC¢ Or TH~ ACCOUNT ~P~ES¢~TS TN~ =NV~TO~Y VALU~ ON New YORK Or~l~c eOOK~ O~ LOOS~ 1 . BCBIT~ rO~: A-- O~=~S ~O ~COVN~ t=O. ~27A10 - FINI~¢~ ~ooo~n ~o~ TH~ ~V~ ¢o~ or THe TH~ D~:BIT BAL^t~c=: AT D~ccNaE~ 31j 1'~39 iS CO~IpOS~O O~" r~¢ ~'OLLC~=~= ~U~7~T~ VALU~ 2.9~2.772 $117*998,07

2~A~ - UN~LABL~ FINISHED G~O~ r 4 N i ~l:r~ ~oor~s * #~ ~C~,~R 31. 1~ T~ S,,~C~ ~E~r~ ,N ACCOUN~ NO. ~OA~" ~¢P~S£NZ~N¢ TH~ ~STI~"~T¢O N~T A ~U~A~h" A~LyS~$ O~" Tm~NS,~CTION~ rO~ THE Y~A~ 1~J9 ~'OL~OWS; ~93,~~o B.~m.~,4C~ ~CEM~t~ 31, 19~9 .g, -0-

2~A86 - SAt.E.eT~ENIS RETOflHKD GO0I~ OEC£~R 31, 1~9

27A~ - SALF_~#P,~NI$ RETLI~N~D GOOD~ OECF~BER 31, 19~ PA~E 2 ~T BAlAnCe dA~UARY ], 1~ N~T ~¢~TS TO ~AbCS~.~ L~S~ AOJ~ST~E~S ~Y New ~R~ Or~L¢¢ ~R VA~U~ O~ ~83,583.83 497,829.15

OECE~ 31, :~9 TH~ ~[S,T ~,AL~C¢ Or ~N,S ACCOUNt ~EpRES~NTS VN~ ~T AMOUNT Or CRED~T~ TO C~TAL~ ~C~OER~ fOR 8TO,OTO,~8

TH~ O~IT ~a¢~ AT ~.¢~e~R 31, 19~ IS ¢o~pos~ OF ~H~ ¢OL~eW[N~; r,R:~ 1935 333,685 418,974.9~ ~956 30,387 38,~53.92 1957 ~Z4,383 532,~5-~ ~9'56 ~oo,6B~ ~a6.~8,83 t959 k9,3~ ~ 1,178,359.5~ S~co~o I~33 64,1~6 59)28'3.68 TOTAL pO~ND~ 1~i.~

~A2~ - I=~OVISION FOR ~JTy. FRELGN?. ET CETERA. ON TONCk ~ANS DECEMBER ~l. I~9 TH~ C~=T BALA~¢~ ~T DCC~B¢~ 3I, ~9 IS =O~POS¢~ Or ~H¢ ~OL~OWI~: Fd~S~ ~ALtI~Y 2~.I~ 7,710,~7 ~¢ONO ~U~lrV ~30,51 H:SCCLLAN¢~US C~oIT ~ALA~C~ DCC[~B¢~ 31, 1~39 13~,9~I.9o

~A~I - BOX FACTORY PROFITS IN B~H CLG&~ BOX INVENTORJF$ OECEWe£R 31, I~9 N~T PmO~T D~$C~Ip~IoN SlZ~ 8OXE~ LAa~L~ EL RO;-TAN IO~ $1zE~ CH~RC~ ~ON ~a~C~ I/~O 11~.~7 I,~I EL ROI-TAN T~U~ TOTAL ~TERIaL~ 7~T~L 113.17

THE m~ aALA~CE Oe ~i~ ACC~WV ~P~S~N~S V~£ VALU~ ~ AV~RAC~ CO~T or CIQ~ mo~s AN~ ATTAC~D THl~ ACCOUNT ~CC~D~: ~ C~©~TS rc~ MONTHLY D~T~ ~0 A~ NO~ "~1 . BOX ~TOR~ ~O~T~ ° CI~S~ ~L ~O~-T~N ~ S~zcs 1/2O ~T5,~58 g3.~1o.73 ~5.379.55 68,~.9o.68 ~L ROI=TAN 10~ SIZES 1/80 ~6,h80 1.266.55 751.1~9 2,O18.0~ I~OI-TAN Tsu~p~ 1/~o ~0,370 2.01~.~ 1.1~6.g5 3,17"0.65

3596~ - £~ Do×~ BfLLI~ ~N SU~PE~£ 0EC[~ 31~ I~ T~s ACCOUNX ~[CO~OS: 2 -- D~IT~ r~ C~ITS ~ ACCOU~ NO° ~A~] . BO~ ~CX~ p~o~l~ . C~~ ro~ ~ I~

36A33 - T~x gT~,~s - OT~En DECE~ER ~I, 1959 T~ ~el~ BALAN~ Or THI~ ACCQU~T IN~LUO~S ~HE .E~ VaLU~ ~F AtlACH~D A~ U~TTa¢~ CO~81~ATION ~LO~~ ~On ~ V~LU~ Or ~A~ ~TT~C~ TO ~l~n~r~s AND N~W yo~ Sr~ TN~ o~1~ ~CA~¢~ AI O~B~R 3~, 1959 IS ¢O~PO~O O~ T~ ~o~O~1~: cO~81NATIO~ - N~W yO~ ¢17y AN~ S~Tt TAX S~A~ N~ ¥0~ STAT~ TOBACCO P~UC~S T~ DE~IT BgU~CE ~ec~ca 31, 1959 ~NT~YV ¥~LU~ 5~ ,000 11,3ho .00 124

36A~ - ¢~ERAL FACTO~q S~PL~ES D£C~ER 3I, I759 TH~ ~Z~tT SA~ANCC O~ TH~S ~CCOUN~ R£PRES~NTS THE VAL~ Or ~UppL1~ ~NO AUTOMO~L~ ACCESSORIES STO~ED

~6&60 ~ ~NERAL FACT~'t SL~'pLIE5 DECEMBER 31, 1959 pA~ 2 T~E ~IT eALANCE AT OEC~e~ 31, 1959 I~ C~WOSE~ Or WIle ~'OLL~IN~: QU~NTIT~ 18,136 13 61 13 ~62 ~94 6 ~5 19 11 3,?% ~43 3 ToN~ 8,??5 G~LU~S D~elr e~LAN¢[, O~CZ~BER ~1. 19~9 A~OUN~ 5.8~8.5( ~96A~. .83zA3 3~).39 83o,/3 ~t~5.z7 6o.9~ ~1i.73 6.31 69.~1 35.83 1 .~z~ .63 9.~ 59o.~7 875.~6 8,7o3.zo ~.~6 ,3,86z.9o 675.13 ~67.8~

~6A62 - F~,E~ER~I~ F~ O~3~OUETE M*~C~'~INE ANO ~UI~ ~='LA~ENT PARTS L~S~MBER 31, 19}9 17~986.~ 1~,y3~,I7 or ~UrA¢~UR~ - CI~A~S~ ~*O15,~2 9,059,78

36A~3 . GE~L FAC~C~:V $OPPLI~ AT ~PPLEERS ~'C[MBER 3], 1959 T~E OEBII" ~A~CE O~" THIS ACCOUNT REPR~SEN~ ~'~ VALU~ O¢ COMC'~Y O~'~EO MATER~A~. ON HANO AT V~R~OO~ ~UPPL~S, (CON~qNUE~I

3(~3 . ~N~.RAL FA~0f~y S'UppLIE~ AT SU~LIERS ~C~BI~R 31 , ~959 ~E 2 ~AME AND A~ESS OF 3VP~I~ ~X~ICA~ BANK NOT~ COMPAny BRONX, N~yo~K 320'II%~TFr~ AVENUE DeSCRIPtiON I~H ~UANTIX~ AMOVN~ ~RT~FIC~T~S ~O~ 100S 16.0OO P~

36Mo - ~TAGE S?~ D£Cg~4~ 31, 19~9 2,~7 .tH+

36A~ - SHI~ENT5 ~N TRANSIT D~CE~ER 31, I~9 THIS ACCOONT mECC~O~

~0AIO . NOTES R'EC~pVABLE . AFFILIAT[0 ~N~E~ OECE~ 31 • 1959 TM~ ~[~IT BALANCE O~ THPS ACCOUNT ~EpRE$~T~ UNPArD B~LANCE~ or ~OT~ m~¢~VA~L~ O~ A?~rLIAT~ THIS ACCOUNT ~COR~: B~L~CE AT ,~UA~y ~* 19~9 U'SS= ~Azo~ 3/6/T~ A~OUN~ 295,680.28 TH~ m[~T ~AL~C~ ~T ~¢~e~ 31, 19~9 ~ CO.FOlio o~ ~ ~'~LLO~I~ 3~ ~CU~O ~E~,t,N~ ~OV~ OF" CU~ Toe.coo CO~m~N~ INc,t ~NTtRCST P~NE~ DAT~ AMOUM~ 1,TlO, G'~,O0

~A~ - CUBA~ TO~.ACCO C~ANY INE, - L~N ~CrJDIJNT DEC[MBIL~ 31. 1959 ~35~CCO.C~ 1,287,0OO .~O 1,28y .~O.00 0

~ST . C~AN T~ACCO C~Y INC. O~¢~e~R 9 ~.15

LC~AV IO~ M~ ¥o~ L~A~ OEmAR~EN~ ~0A57 - CU6AN VO~C¢O COMply f~. OEC~'MBD¢ 31, 1959 ~'4OUNT 1.157.O~ 8,~18,53 9,38L20 ~o.5o 1,162.66 1 ,lt2.53 3.63 TS,*o 15o,OO 512.46 8.~5 1~3.15 566.67 ~2.39 5.9o 19,9~ .76 1.86 y~ .CO 6o.78 ,T6 5,807.99 87.5o 61.66 ~1.83 2Ol .5o i .T5 66.73 1,8h8.15 E*O~

v I I ~ ~u~u~~u~ ~i~°~o~°0~o°oo°o.~0°.°0. o~ ~ ~o~~

~GA~ - ~)L[~EN BELT MA~UT'ACTURI~'G COHpANy - LOAN ACC~HT OE£CMB~ 3I, 1959 I~T[R~T RAr~ -- ~U~y ~, 1959 ~ ~V I~, 1959 -- MA~ 15, 1959 AUGUST 31, 1959 - 5 ~/8 S~PT~C~ I, 1959 ~ ~OW~ ~, 19~9 ~ 6 I~I~ - D[~IT~ FOR LO~ MAO~, .o- 200,0oO,O0

~30 - J, Wig & SONS L~HIT~ D~EMB~ 31, 195~

~IO - Slf~KING ~-UN~ CA~ IN HANDS O~" T,~JST~IE - ~NT'f ~AR ~ ~fi~NTU~S NaTORIN~ apRIL 15, I~2 ~C~R 31. 19~9 (CONTInUeD)

~IO - S~]NQ ~IJMD CA$~: IN HANI3S Ok- TRUSTEE - ~,f YIEAR '~ OE~NTIJR~$ MaTORINC; APRIL. 15, I~2 ~cr~ 3~, 1959 pA~ 2 ~c~ Ja,uA~ I, 1959 CASH O~PO~IT~O Wi~ TRUSWE IN I~ A~IL JULY F~ TnU~T~E: dULY SUSACCOONT SfNKfN~ FONO 7.50 696.~5 5?3-75 46,558.75 .¢ ~tJ ~oo 716.2fi R~D~m~ION FUNm -O- -0- -0-

~AI~ - SLUING FOND 4:A$,~ IH H~N[~ OF TRUSTEE . TW£NTV-FIW ,,KAR 3~ ~NTORE$ ~ATt~ING OCTO~R ]5, 1969 ~R 31 , 1959 THE ~I~ ~LA~C~ ~F THIS A¢¢~r ~E~=~T~ C~ IN HAN~S ~ MOR~N GUAmA~ TRUST CO~eAN~ ~F ~ ¥O~K, - ~I~IN~ F~N~ ~C~UNT .O1 p~ W~U[ OV ~m~u~ ¢~g~ ~u~ ~?~ ~gm¢~T~ B*ba~C[ ~amum~v I, 19~9 APRIL OUL~ Am~IL ~¢COU~T ~A~CO~ NO. 2 $~ ,OI SUB ,02 7~ .5o ~}.oo I~O ,oo sum ,03 0~r~T O- .0- 14 !

~TY ~ ~ ~NTU~5 HA~JRI~ dAiRY 1, 1~ ~mMe~m 31, 19~9 A SV~R~ ~AtyslS O~ T~NmACZlO~ fOR THe y~R I~9 fOLLOW: B~La~C~ J~SY 1, 195~ L[SS: A~D ~T~R~O BY TH~ TRU~T¢~ - J~L~ 1, 1~ ~A~C¢ [~eCEMB~ 31, 19~ -O- 3~0~O,000.00

~A~ - $I~I~ F~O CA~ IN HANDS OF TRUS~ - $~B~CCOUN~ NO+ 2 ~OB .01 50~ .O3 ~O~ -O- -0- 14.'~

~AI5 - ~0¥1510N FOR LO~S ON INVESTMENT5 IN I.~HOLLY C~N~f) ~'~REIGN SUB$1[)IARLE~ DEC£~CR ~1 , 19~ TH~ C~OLT ~ALAN~ SM ~IS ACCO~INT RE~,R~S~,'ITS • ~V¢ rO~ pOSSl~lk~ LO~ ~1 INV~S,'M~N~S h~ CAPITAL TH~ C~PlT ~L,~NC~ AT D~C~M~ 31 ~ ~9~ IS Ce'MeOSED t,F TH~ WOL~.~: BA~ANC~ OF AMOUNTS ~OVIO~O I~ p~O~ ¥~R~

~O . ~C~41N~Ry AND ~UIP~IENr DE~R 31, 1959 TN¢ ~ BALANCt OF T~IS ACCOUNT ~T~ TH~ ~O~ ~O~K VALU~ O~ ~CHI~RY A~O t~l~t~T LOCATEO AT ACCOUNT ~O. ~7~O - P~orl~ A~ LOS~ O~ ~IsPO~IT~O~ O~ cA~rT~ ~S*~

~I . ~r.HIN~ AN() EQUII~4ENT A@QUIR[D I~/'~1~ iX H~ OF ~t¢~i CK~RETTE A~ CIC.~R CQ~pA~ DCC~[R 31, I~9 T~CNT~N I~:A~ D~A~T~XT 7~6~.25 DETAILS Or ~RAXS~¢~I~ DU~IN~ ~HE ~AR A~ I~cLU~ IN ~XC ~UpptJ~T~Ry ~I~CAL D~£~ ~NA~yS~S Or

~ER 3% 1959 T~ ~BI70,~LA~CE ~" THIS ACCOUNT n~¢~C~TS T~ GRO$~ eOO~ VAL~ OF ~ACMI~R'~ ANt, E~ui~'~ENT O~ STO~A¢~ O~- AC~OU,~T NO* ~O . ~o~ ~ LO~S O~ ~I~o~i~'~ON OF C~p~,~L ~SS~T~~

6~T - ~HI~Ry AN0 EQUIF~T ON S~'O~GE AC~UIRED 12~1~3 ]~ ~ OF A~RICJ~N CI~R~E A[~D CIGAR C~PA~ ~CEM~R 31, 195~ T.m O~elW eALA~CE OW T.IS AC~OVnT ~p~£Srn~ W~ G~O~ BOOX V~ Or ~A~Hl~y AnD t~Ul~nT AC~UI~mO T.~ O~BI~ ~AL~ne~ AT ~C~ 31, 1~9 R~T~ AS~T~ LOCA~ A~ rOLLer,at NO~FOL~ Dry,*Ion 5J.60 Actoun~ ~o. eT~O - ~o~-i~ ~,~o LOS~ O~ ~l~O~lOn O~ Ca~tWaC ~W~.~

J* WIX & ~ON~b LTO. ~C~R 31. 19~9 PRO~RT~ CLaSSifICaTiONS, SOLO, AS~N~r,~ O~ ~THtR~IS[ DI~PO~O Or* TH~ ~AS ~O 8~LANCE AT ~¢~MBE~ ~1~ 195~ ~AIL~ O~" TRA~ACTIO~ ~U~I~ T~ YEA~ ~ INCLUD~ ~N TH~ SU~PLEH~NT~L fiSCAL ~INDE~ ~ALYSlS O~

~A~O . 14ACHINERV ~ND EOIJI~'~IENT ARAkO~IED OECENEER 31, q939 FILTER ~P ATT,~CX,,~ ~" ~RWAM BRaNC~

~¢E~R ~1, ~959

~2 - ~O¢INER~¢ AND ~OI~.~NT ~ED TO OT:C~R ~A~ AFFIt_IAI"EI) COMPA~ I L=S t~CE~R 31. I~9 T~t ~A~A~CE ~*" DZCE~m~R 31. 1959 IS ¢O~POS[O OF TH~ ~O~LO~I~: MaCH~N~ NUNBEm A~U~ I~21 1.0OO.00 Ii~32~ 1.0OO.00 ~5C~ 600.O0 ~5o5 600.00 E506 600.0O 6O0.00 6OO.OO 962 600.00 96T 600.0o 10r~ 600.o0 ~T~ GROSS P~C~ ~ BOOK Ju~y 27. 195~ JVLY 27, 19~ JULY 27. 19~ JULy 27, 199 JULy 27, 199~ JURY 27, 195~ JUL. 27, 195~ JUu~ 1959 Ju.z 1959 au~t 1959 Ju.~ 1959 JO~ 1959 Ju~c 1959 ~uu~ 1999 (1} D1 I0,OP3.~7 10,02~,27 I0,02~.26 I0,0~3.26 ~,o6o.36 8, ~o6.98 8,]o6.98 8,1o6.98 3,858.83 6,559J16 6,559.~9 I~,636.1o

65A~2 - ~CHI~y ANO EQUIIa~E~T E~EO TO OTHER T~t~ AFF ~ LIAT£O CCI~IPAN I E$ I~R 31, 1959 ~CH ~ NUMB~ ANN~AL U. $* ff~LT~R CO~pORATr~ FILTC~ pLU¢ ~KING M~CHI~S 963 1,0oo.oo BA~.AnCE 0~C~N~ER 31, I~ ~AC~O I~ BOOK APRIL I, 1958 11,%~'~,II APRIL I, 19~8 11,57~+I~ 4ULY I, 1958 3.969.18 ~ULY I, 195~ 6,6~6.~5 PA~ 2 ~c¢ouN~ No* ~O - ~orl~ ~ LOSS O~ Ol~p~S~lO~ O~ C~ ~TS." RENtaL IS COM~T~O ~RO~ O~T~

~5A65 - OFFIC[ f'URHI'I~[ A~40 L'QU~pt4E~ OL~D49~ 31, 1959 T~ ~IT eA~C~ AT DEC~BCR ~1, I~ ts CO~pO~D or T~ r~LL~l~: (CONTI~U~O}

6~A6~ . OFFICE FURNI¥~'~E AN{) EQUIFMENT OECEMBB~ 31 , 1959 PA~ 2 191.617.~3 2c~ .~83.83 361,379.~6 77%166.2} 1.0~3.50 1 .c~3.50 I,~§1.16 I.~}I.16 .h36.~6 I .~36.t6 I,~62.69 I.~6~.69 T~7,T/ 717.77 586.95 586.95 ~,737.65 ~.737.6~ ~6,91h.8~ 1.838.~o 9.5~3.18 51.787,9~ ~37.73 ~3.23 306.33 i ,O')6,66 583.~5 9~62~o ~ .739.o5 5[~4.11 98h. o9 ~ .8oo .21 583.15 95~.56 1.767.35 583.15 ~ .O3O.25 1,858.65 6~.69 I ~O33.~O 1 .~87.96 567.1o 1 .~16.~5 2.008.5O 585.83 1.359.38 ~,175.77 589.78 ~8.~I 6~9.~ 1.679.5~ 581 .~8 98~ .09 1,795.13 56T.lo ~e~ .P~ 1.717.16 589.?8 i .398.~3 2,e~lT ~.11 966.35 1,796.1~

~ - ~FICE ~NI~RE AND EqUIPmENT AC~ fRE~ 12/31/~ IN MER~:R OF ~I~RICAN CI~RETTE ~ID CI~t~R C~I~pAh~ ~CEMBER ~I, I~9 THE O~IT BALA~C£ Or TNI~ A¢COONT ~S~T$ T~ GROSS BOOK VALUE or O~FI¢~ FURN~TURC AMO ~EP~NT 2 . CRedITS FOR~ MR, A~A~ C. GAR~TT, A~ITYVI~L¢, N~W YORK ~6~ ~I

~70 - ~,~FICE ~J~NIT4JRE ,~ND E~;Jt~ ~ ST~A~ TH~ ~B~T ~LAN~ O~" .r;~r~ ACC~mT ~P~CStNT~ THE ~O~ SOOK V~I.U¢ Or O~PlCC ~q/~rTURE A~ ~QUIpr.~" TM~ D~OI~ eA~.AMC~ A~ D~m 31, ~ RE~'~E~E~,'~ ~,S~'S LO~E~ ~ ~L~: 5~

6~A~O - SALE~N tS AND $~ERV~ SORS t AUTO~0BIL£~ ~Ci~24~R 31, 1959 5~mE~w~o~~ ASSI~ENTS GROSS BOOK V~L ~ ,196,71*m ,18 ~8.?,596 ~3 ~5,~8~-55 1,012 DET*~LS ~r nOO~ V~kUE$ ~O ~P~LEC~LE ~ES~RVES ~T ~CEMB~R ~1, 1~9 B~ ST~TC~ eOL~a~a: (CaNW~UEO)

ZALESIVEN'$ ANO SUPERVFSORSI AUTOMOBILE~ pA~ 2 16,8~5 ,h5 68~.%5 iv ,958.9o 7,169.35 i ,69%~ 5 8,86&.~e 7J~5.75 7,~ 7~ 99,51o.o6 I~,828,19 2,6~6.1h 6~6.7~ 117.601.1q 1,802.70 1~.667.2~ 11,9~ ,10 1.~06.76 3,7h9.52 2q,028,~0 17,656.18 2O,7M.57 22to6~t22 1 .e~k.£1 12.85~.69 h~.79 h,3,o2.2O ~5o,62~.~3 33.6o~.z7 3,919.o7 l e~.668.~7 17.09<78 2 ,~I 6,03 23,877.99 ~.A78.98 6,657.65 2,02~,00 ho.86h,o~ 21,T86,18 (CONTI~UED)

65~O - SALES~4ENI$ ANQ $UPERVI~OR~i AUI~HDBILE$ ~.CEMgER 31. 1939 PA~ 3 HA~ i i ILLINOI~ KA~S K~T~CKy LOul ~IA~A MA~N~ HA~yCAN~ MASSACMUSETTS REgULaR SUPERVISORS CIGAR R~C.ULAn RECULAR C~AR R£aULAR REGULAR CIGA~ HEmCHANT MARINE REPRE~NT~TI~£ RCOULA~ CFG~m M~aC~T H~mN~ REPrESEnTaTiVE CtG~ Ga0SS ReSeRVE ~CR NET ~ 4,o~.73 3~,~67.85 ~8,87L88 61,357.6o 25,856,15 35,5Ol 3+5 33,0~1.51 13,153.51 19.888.oo ~4,4~.35' 8,6~0,36 ~5,844 .o3 3~,888 -2~ 13,877,37 ~1 ,o~o,8~ z8,876,78 8,5~8 .o7 ~0,~8.7~ 4,693.7~ 1,282 .~ 3.411.43 ~%,Sqq,~q 10,24@*~ 25.6~9.S1 38,6zo .13 ~7,598 £5 2} ,o~ .~8 lO.~8~ -95 3,B~-3~ 6,h36-63 ~l ,ozh .03 ~ .~.17 28,688.86 (COaT,NUED}

6~O - SALE~ENI$ AND $II'~RVI~0R$I AOTOMOBIL£S ~DCEM~R 31 . 1959 HI~HI~Ak HISSOU~I MONtaNA NEB~S~A N~W HA~P~HIr~ NtW dERSZy NEW MEXICO NtV Yor~ ~AL~ DI ~1~tO~ G~SS R~ eo~ NEt U~,~G CA~S BOO~ ~LUE D~P~CIAT,ON ~K ~UC ~uta~ 93,7ol .~ ~o,o46.86 63,651<53 lO~.~7 .~1 ~ .6CO.~O 6B .8x%. ql r~u~R 31,706.~6 l~,O~ .19 19.6~4.~7 R~o~ 18,~6.29 7.375.5~ 11.5~o.37 C ig.x R 2.1 ~o .l~ 8~2 .oo 1.278.00 21.016 .~g 8.227 .~ 12.7~. ~'/ R~uu~m 1~7 ,991.62 ~7,3~7 .~3 30.6h~.I9 C,~A~ 1~ ,996.48 5,~3,~e 7,61z ,56 62.7~8 .~8 ~ .86h 26 ~ .89~ .0~ ~¢~UUAR z0.3~.50 6.9~7,zI 13,~LI ~z9 c,~ 7.o57 -38 1~.o77 .~9 ~ .98o .o9 eE~uc~r 8 ,~93.06 ~,6~ .09 3,6~8.97 C~IR 2 .192 .75 1 . liO ~. ~,~ V89. ~7 rE~ot~ 223,~.83 ~,~l~.lt 141 .o89.7~ Su~.v~o.s ~,159-79 863-93 1 ,~9~.86 26~*q00.4% 101,56% ,22~ 16~*q~%,21 (CONWNUEO)

NO~T~ ~KOTA O~LAHOMA O~O~ PE~U~Y~VANIA FUtRTO RICO RNO~E I~LA~O SOUTH t2m K~TA T~NtS~E TEXAS U~H 6~O ~ SALC£~IMEN t$ AND SU~EF*VI ~0R$ ) AUIOM081LE$ t~¢EMB~ 3% ~959 SAL~S 01VlSlO~ Rt~ULaR CI~A~ REO~LA~ R~ULAR R~ULAm RE~U~Am REOU~A~ RE~UL~m Rt~U~AR CIC.A~ Gr~SS RE~E~VE ~om NET 56.169.05 ~3.11,3.6B 33.025.3T 89.033.5~ ~e .o69.51 48.9~ .o3 ~.9~2,04 1,678.~ 226~,~ ~6.579 .~6 1 ~.~81 .~7 20.6q~.6q 119.99~.25 ~,661.79 77.336,~6 19,75o.76 I~ .085 .~ 7.665.36 I1¢~ .1~0,%~ 5~,18~.86 86.gg5.68 8.~60 ,~ ~ .~o.~6 ~ 12,60~ .6~ ~,197.11 ~3, L~3.57 22.07~.05 7 .~ .~O 1 ]t .~,% .I 6 37,a~$.55 15,B9o.3~ ~1,33821 6.545.57 2.555 .¢)~ 1.~g.6~

~A~O ~ Sa~E~dI'N~S AND SUP~RVkSORSI AU10~OBILE$ oEC~t3£~ 31 , 1959 ~L~s DIVr~:0N UsINa RC~Ut~R R~GULA~ CI~ WAShed.TOM bleS~ VIR~NIA R~ULA~ CI~Am R~GULAR TO~L G~O~ R~E~V¢ tom N~T 5,7oo-~o 3,897.76 1 ,~}2 fl=~ 6~ .g4h .87 ~q .6~6.2o ~h .~ .67 5~ ,37o.6o ~ ,736.9~ 36,633.66 ~.562.oT I~ .~149 .o5 13.313.o3 1,7~,79 1,7~r7o I~ ,i*Sh .9~ ~5,6~.ok ~6.8o6.9o IG¢~

LOCA~IO~ O~ CONSTRUCTIO~ N~ yORK orFIC~ CON~CTICN W~TN ~MAGED ~E~ER~OR~ F.F. 33 133 1,ol5.~7

6~A~¢ - F~[R~/E FOR T~PAIF~ COT~TF~ICTION DCC[~4E~I~ 31, 1~59 ~0,00

~A~O - AS~$ CAPITALtZFD F'O~ RECTO ~tE,~m 31, 1959 TH~ ~mlT ~LAN¢~ ~T ~C~m~R 31, I~ i~ COM~OS~ O~ TM~ ro~.Loul~a~ o~ralLa ($¢scouLc 21 -r:~c ~Ts {$:.couLe 3) DC~IT ~#*LAN¢¢ I~CI:~ ~1, 1959 t.00 I ~G¢3 1 ~00 1 ,CO 1°00 (CONVl~UCt~1

~6A~O - A~S CApITALF~0 FO~ ~CORD CEC~4BER 31, I~ pA~ 2

~MSEn 31, I~9

66A]0 - ~$ CAPITAL;ZED FOR ~CORD D[~NB[n 31. 15'59

7~20 . RI~SERVE FOR 0~FRECIATIOR ~ IMPROVEMC~rf$ TO I~.ND ~IECEF~E~ 31, 1959 THE C~,T ~ALANCE OF T~,S ACCOUNT ~R~S~NT~ T.~ A~OU~T Or A~C~U~D ~m~CIATIO~ Q~ J~OV~T~ TO & ~O~A~y ~L~SlS or T~A~IONS FOR TH~ YE~ ~#~ fOLLOWS: e~O ~ L~o,sv~k~ ~C~~ a~OA30 - ~IO~VIL~ ~ANC~e ~90~O - ANERICA~ SU~pL,~a~ 6~7,5~ 29~.o8 7;.556.6~

~20 - ~5[RV~ FOR I](.Fg~CIATION OF IMP'A'G~/EMENrCS TO LAND OEOE~R 31, 1959 - ~V,N~, ETC.. O~ COM~NV ~R~PERTy CI~'T BALANCE* ~N~A~V I, I~ L~SS: RE~RV~ APPLtCASL~ TO A~SE~S ~A~SFCR~ TO 3 - ~ILROXo SpuR* D~H~, ~omVH CA~OLI~ 32.6~ 1,338.~2 1,9~2,40 ~oR.76 ~,889,~8 1,966,~0 II,~O PA~E 2 35o,6~3.~8 132,586,~9 R~'LS 2% P~R~I~C LOT P~V~M~NTS T~ CROSS~NC~ BALLAST AN~ ~¢~ 10~ CF:~O~T t~A~ANC[, I~¢~Me~ 31, 1~P~9 ~Esc~v~ FOR DEPmEC~ATIO~ J~UaRV 1, 19~9 1~9 O~CeHS~R 31, ~,180,~1 80.~0 2.260.61 3.195.30 31~.1*0 ~,509,?o ~,085-77 39~,52 2,~78.~9 126,37 1~6,37 1,~,~6 1,5~,16 1,o00f6~ 1,0oo,6~ 10,11~,~ 787,~2 1o1899,?6

7~20 . I~,I~$ER, VE FOR DIE~CIATICl¢ C}~ IMpR, OV~4EN'T$ TO LA~I) tlECL~4~ER 31, 1959 PAG~ 3 IA~ P~I~R To JA~v~ I, T~37. CR~OSOT~ TI£~ WE~ ~p~ClaTE~ AT AN ~NUAL RATE O~ ~. SU~S£Q~C~T NO~H C~O~~ To

70A2~ . RESf"RVE FOR DEPRECIATI(~ OF BUILIHNG~ AND BUILDING FIXTURES ~XM~R 31, 1559 T~I~ aCCOUNT ~ECO~$ ,~ONT~L" ~I,'S ~O ACCOUNT NO. ~0~1~ - L~r D~T~.~~ ~'O~ O¢~ClA~ION N~WL~ ~80,865.38 895.7~ 178,668.~5 13,~3.88 53o.4~

?OA2~ - ESERVE FD~ OEPI~.CIATJON OF BUILDI~$ AND 8UILOIk'~ FIXTIJ~ES ~R 31, 1959 PAGE 2 2 --~OIR~D 12/RI~R ~ ~RGE~ ~ AMERICAN CICA~Tr~ ANm ¢~C~R COM~AN~ ~p~EelAT~ON ACC~U~m DU~IN~ r~E ~A~ 10,~02,99 977,~6~,~7 m,~3,855.68 ~.?,~

7OA25 - R[SERV~ F01~ ~ECIAT fl~q I~- BUILOING~ AND ~UILDI~I~ FIXTURES r£~EHBE~ 31, 1958 5o8.~ 57,772.}~7 CR~J~ BALAnCe, JANUARy I, 1959 T~NSr[mm~D TO ~MEn~A~ ~U~L~S AT JAnUAry I~ 1959 R~s[~V~ APPLICAbLe TO ASSE~S C~IT BAL~C~, D~R 31. I~'~ 9TT,Ig~.~7 ~%O89.99~.16 SuoAccou~ 2 ~,c~3,855.68 :;78,~97.~o ~.565,~58.~8 57,17~h7 1~618,o9~.77 TOTAL 18.656,~85.~o 13,677,T57.T6 5~o.~1 1~. 712.62~.11 ~53,96~.S~

70~O . RE'3ER~E F~ DE~ECIATION Cf" MACHINERy A~D ~UI~I£NT DECI~4E~]~ 31, 1~9 ~E CREDIT BALANCE OF THIS A~OUMT ~Pm~S~NTS T~¢ A~OUNT Or A¢¢RU£D D~R~¢~aTIO~ ~N HACHI~R~ A~ (COntinUED]

7o1150 . RES£RV£ FOR D!~F~ECIATION ~ MACI~I~£RY A~D ~UIPHENT D~ 31, 1939 pAC~ 2 A SU~,ARy ~*NAi*YSlS OF T~ANSACTIOM8 r~ ~ Y~/,~ 1~9 ~'OLL~: C~EOlV ~tlc¢, ~NUARy 1 * 1~ ~," JAnUAry 1,19'}9 1. GROS~ E~C~K Vtd.U~S "¢¢eA~Sr[~¢¢~C, To or ACCOUN~ NO. m~O . PROFIT A~¢* LOS~ o~ II~SPOS~ION O¢ C~.pI~. ASSCV~~ ~3,666,28 T ,59~,I~ 17,T~7.758.71 ~.oo'¢,918 .,~7 17.228.681 .Jtl

~OA~O . RESERVE F'C~ DEPR[CIkT[ON OF" kCACHIg, I~y AND ~UIF~[~T 0[¢o~ 31, 1559 . ~IACH,~RY A~'O ~UI~¢N~ ON LOAN rO 0. WIX & SONS LIMIV~D CmCDI T BAtJ,~¢~, dA~UAF~Y 1 • ~59 HIS~LLA~[~L~S CXm~5~S . I~TN~m T~AN ~I~A~~ y~a~ ~ A~,LVSI~ ~r ACCOUNT NO, ~760. P~OrLT W i LK~S .B~R~¢ 1,661 ,I 9 "~I . U~u ~Xm~NS~S . C,~S" 181.81 ~h3 . U~IS~IB~V~ fXm~SZ . Cl~~ 88,17 T~Z VZ~n ~n ~SlS O~ ~¢cOU~V NO. ~60 . Cn~,T 8AL~Z, J~NUARY 1~ ~5'99 D~mn~C~TIO~ c~Ame~O ~O ACI:~T NO, "2~ - [~¢ PA~ 3 9.715.9~ .0 . 29,~51.22 1,o31.~53.35 9,678,%' 1,0~o,938.27 26,8~3,31 7,598,b6

7~hO . RESERVE FOR DEI~[I:IATION OF MAC~IIhERY A~IO t~UII~I~T OECDIER 31, 19'~9 pA~ k RECAPI~JLATICN OCPR~IATroN A¢CmU¢O R~S~RV[O ~p~L4~AI~LC TO ASS~T~ SU~CCOU~T SUeACeOV~ BUmA¢¢~t SumA¢COu~T 1 2 ~ ,~_ TOTAL 17 ,757,7~.71 9,~93.~1 1,061 ,lC~,57 Z6,~3.31 18,8~,600.00 ~,007,918.8~ zz~.~l 9,678.9~ 7,96~.80 Z,O~ ,78~.1o 1,629,~53.36 29,851 .~ 1,659,3oh .58 33'666"~8 33,666,28 7,~98.46 ~ 7

~ - RE,~'RVE FOR VALUATIOq O~ CAPITAL A$$U$ 0~CE~R 31, 1959 A ~UMMA~y ~MALY~ OF T~N~C~ION~ r~R TH~ YE~ I~9 ~OL~OWS: 401.016.81 401 016 81 °0-

~0 . RE~RVE FOR DEPRECIAI"tON OF OFFICE FUI~4LTTJRE A?~ ~IJIPH[NT

70A60 . R~JD2"qC F'(~ DEpR£CIATION OF O;'FtC~ F~NI]UR£ AND ~QU[~NT OECEM6E~ 3~, 1559 PAGE 2 D~n¢CIATION A~S~SCD DURIN~ W4¢ ~CA~ S~ 9RAk~:H~S: L~ss: Dlspos~ or CAP~T~L ~SS~S~ (CONT~UEO) 1,367,~5.96 2,71~.12 1,5~,T5~.59

7~60 . RI~£R'/E F~ D~Pf~'C~IATION OF OIIFICE FUR'IIIURE ~ EQ~Ir:~=E~IT ~EC~ER 31, 1~9 89,~7,81 ~,67o.36 R¢¢~mITU~A~ION CRedIT ~A~¢ JAnUaRY 1, 19~9 D¢~R¢CI~¢I~N AeCmU¢~ ~URIN~ T~¢ y£A~ ~UeA¢COUN~ SUBAC=OUN~ 1 ~6,6z5.o~ ~,67o.36 139,z95.~o ~ ~ .~l~,~m.~Z 16z,srn .53 1~,~1G.98 176,~18151 ~.6~

7t~ - RE~RVt" FO~ DEpR~CIATrOR 06- SAUESI~NIS A;qO SU~RVISORS~ AUTCO4C~ILES ~c~,~R 31, 1959 A SUGAR" ~N~LV~ Or T~¢~ IONS rO~ ~ '~ ~ ~'OLL~S= NO* ~3~2 - Su~¢nv*so~st SaLAay ~ [Xm~SS~ . L3OS,~52.T~

~OA~ - RESE~E FOR L~P;CEC~ATION Or- ~ALC~¢15 AND SUPE[~VISt)~t AUTOO~3BI~S 0CCE~R 31. 1959 PA~ 2

~£CEM~R 31, 1959 THq~ A~COU~T ~COR~S: ~OKING, ET~.~ ~, ~ - UNOnS~mUT~O ~Xp~S~ - C~Am~~ ~o~ O£~¢~IO~ CS~,T ~SAL~¢~ J~y I, 1959 LOU nSWLL£ I ,~6~ r~6 r'~4~ -- O~DI~TRI~U~ ~XpE~ ~ CI~R~T~, ~MOKrNG, ~C.~ P'2~3 ~ o~n~nBu~ ~x~ ~ ~I0~rr .o5 28,155 • ~8 38,~ 7~.o3

7~ - ~[R~ FO~ 0E~CIATI0~ OF AUTISm)BILE TF~UCK$~ T~CTO~ A*ID TRAILER$ T~E CREOIT BALANC~ OF THIS ACCOUNt" R¢~T~ T~I~ AMOUNT OF AC~U~O ~P~CrATION O~ AUT~IL~ ~L'C~IS* ~TC~" X~II~ ~2~3 . I~T~II~T~ ~X~ ° C~e ~O~ O~C4~TION ~CCRU~O I.@UtSVlLL~ ~VlL~ ACCOVNT NO~.~ n~ - ~ . C~~ 1.2~5.(:8 897,84 818.~6

~OAIO w F.I.A. FLCAT~F~ INSURA~.E 0Ep<~T OEC~ER 3~. 1959 A~ pAyMeNT OF m~EMIUH ~EmOSIT5 TO ~H~ ~CTOmY I~O~NC~ A~SOCI~TfON. ~CTORY ~U~NC~ ASSOCiaTION. ~- T~ AMoU~ OF Ol~pO~$T RETUm~ ~Y FACTORY I~UR~NC~ A~SOC~A~IO~. O~ THE INSUm~C~ C~Y~ F~CT~Ry I~UR~NC~ ~SOC~TION, A sU~my ~LY~I~ ~ T~CTIO~S ~Om THE y~AR 195~ ~OLL~S:

~0AIO . F.I*A. FLOATER INSURANCE DEPOSIT pAGE 2 poliCY PERIOO JANUARY I, 1958 TO JANUARY I~ ZZZ,687.35 9,779.28 5~3.63 6,599.3~ 3,83¢.99 ~,675,o~ 63,oo3.96

~AI~ - H~UAL F~O~TER INSU~NC£ OEpC~IT OCCE~CR 31, 1959

,~OAI5 - MUTUAL FLOATER INSURANCE i)£pOBIT DECEMBE~ 31. 1959 pAG~ 2 ~MAmy ANALY~I~ Oe ~RAU~aCTIOnS ~OR T~E Y~R 1959 FOLLOWS= p~MIUM D~PO~$T~ DU~In¢ 1959 OE~UCT: PR~MI~ O~eOSI~ ~rUNO OUe TO ~tMIN~TIO~ Oe ~RIC~N SUmpLI~mS RISK~ N~w yO~K OZF~CC CH~STO~ ~RANC~ K~TUC~y BRAN¢~ VI~G~A BRANC~ WILK~BARR~ B~NCH TRt~TO~ L~Ar DZPARTM~ ~UB~n TOBACCO CO~I~NY INC. TIbiaE EAR~ pR~MIO~S 1959 N~W yOR~ OFFIC~ AcCou.rs 9OAhO - A~m1¢An SUP~L~S ~OA~ - Cu~ TOBACCO CO~ANy InC. 67%T26.3~ 615,T86.~9 6o7.566.29 26,70Z.P~ ~,837.~5 5,80718~ 38e.72 ~.56,.38 353,9o 3,oo1177 3,616.69 8,36~.3o I ,o~9.38 H,Z89.68 b i~6,61 1 ~8o6,¢9 ~UTU~L 263,787,16 ~%7~o,oo H%~1o.oo ~?~,967.16 ~3,5~6.1z 4.837.25 ~}9.69 ~319o 3.oo1.77 ~o3,~3 ~,539135 92~,69 I,lk~i97 1,oB3.~o e3,88 ~9,69 GOMmlN~TIO~ FLOATER ~11,939.16 $?.91 41t,999~13 ~11.999.13 ~11,999.13 3,176.76 5,8o7,8~ 38~H2 ~.3ol,69 3,5~3,~4 76,361,99 I,~15,66 ~,4o6.6g 5,~6z.73 6,66~.4~ 319,56o.3~ :! $) !

~,OA2(~ ~ JOHE~ Co pAIC,~ C(~PAN¥ FLC~TER INSURA~4SE DEPOSIT ~ECEMBER ~I, I~ A SIJMM,~R"~ ~J~LY~IS oF CR,~S,~CTIONS ~'Oe THE "~F~ 19~9 FOLI.C~S: ( CONT qr~U~t~)

~(~20 . J~N C. pA[GE COmPANy FLOATER IN~RAhV,:E D~OSIT DECE~ER 31, 1959 pA~ 2 D~B~T ~ALAnCm ~AH~ARW I, ~ T~E AMERICAN TOBACCO ¢q~PA~V NEW yORK OFFIC~ C~ARLEaWCn BRA~C~ LOUlSVtLL~ BR~C~ CUBAN TOBACCO C~eA~V INC. GCkO~n B~LT MA~Ur~¢T~$~ CO~NV O~IT B~L~C~ OE~Mmm~ 31. 19~9 6o.3o ;7.55 63.~6 (.oh 7,o~3,73 ~87.98 18o.5o

- GI~O~ LIFE ~N$~ANCE /M'pOSITS I~DER RATE ~EDUCTION FORMULA AN[J ~'~EC~AL ~TI~GENCY RCSERVE DECEMBER 31 , 1~ THFS ACCOU'~n" ~CORO~: I - i)~l~'S ~OR CR~,TS ~O ACC~'~T NO. "~A~2 - Orr~T ~ ~u~, ~r~ ~R~NC~ ~PO~I~S A ~'~MA~ ANA~.V~I~ O~ TR^NS~:TIO'~ "OR ~M~ ,'EA~ 19~ ~LL~S: TDTa~ ~e~CJAL R~UCTIO~ (]) Ce~Tl~NC~I~ RE~RV~ 20, O~ .0~0 -0- ~0000. O0 ~.8~93~ (CO.~I.~EOI

- G~!OUp L~F'E INSORANC[ DF~O$1TS UNDER RAIE R[OUCTIOt~ FOFO4ULA AND ~'~ECI&L CO¢,~'INGENCy R[SLR~'£ O£CEM~ER 31 * 19~ pA~£ 2 TOTA~ AMOUNT R~TAIN[O FmOM D~VlD~N~ ~.5o {2] DI~I~TEO~ m~s¢o O~ I~IW~U~L C0V~A~S I~ ~XC~SS O~ ~20,000

~OA~2 ~ OFF:~ET TO GROUP LI~'E INSURANCE DEPOSrT5 UNDER RATE REOUCTIOe~ FOF~'~JL,~ AJ~O ~EC]AI. CC~TINGLHCy RESERI4E C~M~E~ 31, Ip~9 (Fo~ D[T~ILS S~[ ACCOU~ NO, ~JA31)

~OA3~ . ~E~pI~D INSURANCE t~'OEM~ER 31, 1939 T.e o~o,v St, L~EC A~- I~CEMB~ B1, 1959 ,s c0M~szo or T~ rOL~O~'NC: CCO~TlUUED)

Avou~l ,. or 500/1,0OO. ~o VAn,OI~ 50'0,000 50,000 IO,OOO "UV Oa~ LOSS 2,OCO, OOO A~Y ONE LOSS 1,OOO 1,5OO, OOO A~G~E~A?~ Or ALL LO~S~S 1.0001000 ~OA3~ . Ul~Xptl~n ik'~Ul~htC[ IXffM~I{R 31. 1~59 T~PE oF COVrRA~ AN~ R*~K COV~D AUlO~,L[: J~.~Y I~ 1960 d^~u~ 1. 1960 I~O~Rt TU~BfMEr E*I~INC ~NO ~eHr~'~ LIAnll. l~m'= N~W "{OAK Off teE r N~ yor¢~ ~W yO~K A~'~lk 1~, 1960 ~o~y - t*&t.L F~t~l~a~ ~oN~y, ~CUF~tT~ t,~ mALl. R;S~S= ~ley dANUA~Y 1, 1~6~ ~FcKgl~t~ ~IF'~S.~',O~* ~**[, ~:~,LOY~~ ~3~.69 11,9~I 1,660.20 ~56-~5 15.O0 7,5co,o~ 31!,699.68 59o.3l 8,65

80~3~ ~ UNEMpI~O IN~RANCE ~CE~R 3% 1959 ~E 3 136,~,ooo 136,0oo,ooo 1o,0oo,0o0 YA~,OUS 500,000 } 15,000 ) 5,°00 ) 125,000 1,C~O,O~OANy- O~ REPR~SE~TA* TIVZ 25,000.0O a~V ON~ ~OSS A~y O~C V~SS~C ANY O~ T,~ 150.~OO UsE ~NDOcCUpA~Cy - C~mS ~ ~OKIN~ INL~'t~MA~I~C AND TRA~,~OnTAT~O~= ~N~ ~L~ ~I~K~ LOSS OF CoMm~y ~E~SE~V~- AS~SN~NT CbF ~VCN~¢ SVAM~ ON S~IpH~V~ JULY 31, 1961 J~Oa~v 2, 1961 SEm~MB~m 30, 1961 OCTOBER 30, 1961 8mL~NC~ %927.6~ 3~.46 59,336.15 81,~26.o3 3~,7o5.5o 1,3/t7.1o ~0,0011.00 33,65&17 65~.9~ 1,666.6o

AKO~NT OF pol* ~c"t 5~0,008/I, 000, OO0 5~, 000/'1, ~O, O~ ~Lnc ~J~LnTY I*~COLLI~IO~ 5~, O3t3/1, ~, 0'00 G~E~AL LIAbiLITY 500,000 p~OP~RTy ~G~ 1.C(JO,~3CO A~ ~C LOSS 2,000,O01~ ON~ ACCI~T 286,~0 ~3~ - ~XPI~D I~URANCE r~UNDL~ [L~VATO~ tlA~g~l~Y* EL~VATO~ P~PC~T¥ T~V~L C~P~ATnON JA~UAmY 1, 1~1 A~U$~ 10, 1~2 $~ 12. 1960 JANUARY 1, 19~1 8AL~N~ 936.96 35~ .95 ~,590.56 1 ~66 ,~

80~0 ° ~I~EPAIO ADV~RTISI~ OECEMI~'r 31, 1~39

OE~'M~R 3~, 1959 T~E ~IT ~AL~M¢~ AT OCC~P~ 31, ~ rs ~O~pO~CD O~ TH~ FO~.LCWlN~ B~AN~ AND M~A LHCKy STRIKE ~LL ~LL TA~r~C~ RfV~ERA TOVAL ~IVICRA 133.8~ 911.73 ~o.oo 7o8.~8 88.5o ~,17o.9o 77~.oo ~1.3o ~o5.35 ~.5~ 851.o8 2,h67.~3 ~o,o~67 ~.487,8~

~O - ~E~ID ADVERTTSrNG DECE~R 31, 1959 8hAlo #,~D M~m,A LUCKY STRIKEt ~LL tAALLI TA~'EYTC~II HIT PmA~A~F EX~RT C AL~,P~ POINT OF S,~L~ MATERIAL TOTA~ LUCKY BTRI~E, ~LL ~IJ-, TA~TCS~, ~IT I~ARAD~ ROI-TA~ - CI~,~O~~ GO~F~, T~U~ #,Nm ~O~ $1~r'~ TOTAL ROi -TAF~ ANT~IO CO~V~HT KON pA~ ECI PAT ~N PACK pmO~OTIONAL (~MpAp~N - MATeRiAL TO~AL AN'~IO y C~OPATRA ~,~3~.9~ 775 .~o 750,~ A~OU~T a,668.c~

~O~ ~ pREPAID I~pENs~ DEC~rn 3~, 19§~ T~ O~BIT BALA~¢~ ~ DEC~ 31, 19~ IS CO~S~ O~ TH~ rOLL~IN~: AMOU~ 1,350.OO 50~,~O 75"~ 132.OO 750.~

~0 + ~pArD INTEREST+ ~EMIUM A~O DISO~t:3NT ~CEMBC~ 3+. 1959

~0~0 - ~PAID INTE~bT, ~q~UH AND DISC~$~T 0ECEMBER 31, 19~9 PA~ 2 H= 0~BITS TO ACCOUNT NO. ~1C~10 - CA~ I~ ~ANKS,~ rO~ ~D~TZ OP ~ISCC~JNT O~ THE O¢~;T 8aLmNC~ AT D~C~NB~R 31. I9~ I~ COM~E~ Or TH~ fOLLOWiNG: 56o,91o.75 -0-

TH~ O~1~ ~ALANC~ O~ TMIS AC(:OUNT n~pR~ TH~ AMOUN~ Of R~T PAI~ IN A~VAN¢~ THIS ACCOUNT R~CORD~: A- HO~HLY CHAR~ ~O A~OPR~AT~ ~cc~U~T~ IN MO~TH I~ W~ICH R~NT I~ T~¢ OEBIT BALANC~ AT D~C~BER ~, ~9~ I~ CO~P~O OF T~ rOLL~IN~ L~S0~ pREMISeS R~NT ro~ 0~RY 1960

l-it ),~ LW~ £L'99 C~)*oL C~'~Lt <~9" 00| 2~" LE~ LL'60~ ~Z'@I J.O" ZC*~ ~-o69 ~'CiOi oo- ~il C~'O~9 ON'(i~ 00" & 00" ~L elO*~ IXr 00~ llli" ~9o' L o9/W'6-6~/t/6 Ogl~Z-6~lWZ oglWg-6~lW9 CglW~-6~iW~ o91~6~i W~ o91<~19-6~/WL c~I ~I Z-6Az W~ ce~i ogD i o9/o~16-6~I W0¢ ~9/z/L-~91~d ~ 09/~/9-6~/I/Z og/ ~/ 9-6 e~i lI Z oglr~lg-~ed ~/ Z 6c-,6i "L~ ~I133~ S~+% 131Y=i311d - O~y~

pA~ 2 AMOO~T N~SKA ~'~OL~SJ~ LER 'S P~T I~0 100.OO I00 .~O NeW HAXP~in~ ~raCTURER'S tiC~ 7Jl/59°6j30J60 25.00 I~.~ New Mz×ico O¢~VR¢~TO,'S p~V 7/?/59-6/~#iJ~ IO0.O0 50.00 N~W ¥o.K ~w yORK CiTY - G~.E~l,i. Bu~,~ Til/59-61~i~ 73,000.O0 36,~O0.O0 n.,o ki~o~s~e Cic~zrw ~^~cals Lic~.s~ ~T/59=~6/60 100.00 ~I.67 o~c~o, Lic~.s,: T/3/59.6/3rVfio 2oo .co lOO.CO pORTL~.~ - e,~Y A~D c~u.,'Y P~c~Y 7111~9-613o/~o 3,255.68 ~ ,~.7.8~ ~xcis~ T/I/59-6/~0/60 F~8.000.O0 31~,ooO .00 ~OL~'~¢ ~L~n'~ pe~IVS !~/59"3/I/60 68~.50 113.T5 9/1/59- 3/I16~ ~a .5~ 7.5o WAS. i ~xo. LiCZN~ 7/I/59-6/50/60 1,123.03 ~61.~ W~ %', a~ ,N ,~ t, C~N~I ANO F~ 7/3/59-6/30/60 ~ 60 .OO 130 .CO ~IT BalANce, OCCZMSC~ 31, 19~9 ~D

~65 - ADVA~E~ F'OR T~V£LI~ KX~K OEC[M~ 31 , 1959

8OA70 - ~E~IO V~EIGHT AND SHINING E~NSE - ~FACTOREO STOCK ~CEMSER 31, 19}9 ~ooo$ o~ OTHER ~NU~AC~E~ O~ H~D ~T ~28,18T.~1

8~ . ~$~RVE FOR AMORTIZAT iON OF I MPROVE~'T$ TO LEASEHOLD5 OE~BER 31, 19}9 THe CRCplV BALA~C~ Of TH~S ACCOUNT ~EP~N~S ~H¢ AMORTPZATIO~ ACC~U~ O~ THZ WLU¢ OF ~Q~PME~ R~CORDCp IM ACCOUNT NO. "~80 - IMPROVEmeNTS TO C~ASCHOL~S.n CRE~'- AOOIT I~ KI. IM * NAt" r O~IS CaEO~T 8)~I.~NCZ DJ~ I~ DOe p~G ~,~L~NC~ 15o ~*sv 42~ STe~T ~7,593,4] 13,67~.9~ 41,~72.33 Hu,,,~o,~ ~v ~USL'C w~,ous~s ~,,897.o9 1,~16.39 6.313.~8 r~czo~v ^~o ~*a~ 9~,311 .~0 ~.373.00 89,938.~0 ~ o,,o ev,~,~ 35,9~3.38 ~7o.~3 36,z13.81 ~s¢~)~1" IN N~w OrgrCE BUt~O,N¢ ~6,~12~7 16,5~°~7 I@i LK~S -t~ReE BR)OI¢ ~ : rACVO~'~ I~8.958.T4 3.066.~5 13~.(~.5.19 £xw~sro. To F~CTO~Y 32,887.4)" 750,6h 3~,638.11 N~w OFFIC~ )~, t4~I) IC~4.

~0~) ~ OFFICE IJEA~H(IL[I ~XI:~E - I~O EASI ~2ND ~T~ET OECEblOER ~1. 19~ I . O~BITS FC*R: E~- T~,~r~ ~-~O~ ACCOU~V NO. "~OA~O ~ IMF,~OV~E~'~ ~O L~HOL~S~ O~ ~'~JMr T~'¢ ~,E~IT ~AI.~,C~ ~T ~¢~HE*~R 31, 19~, PS ¢OMmOS~O O~" ~-HE rO~.L,:~4~: ~S~AReH A~O PL~S TITL~ ExAMrNA~ON 2~ 6~6A~

80~9] ~ R~SC~~ F~ L~ASEHOL~ EX~NSK - 150 EASt" I~ND ~TREET ~CE~mER 31, 1959 TITLe ~XA~INATION m0,~O7,70

~OAg~ . ~TE~S IN SUSPENSE DECE~ER 31, 19~9

81A10 - EXREN~ES O~ [3~'NTL~ES SET UP ~'~ TAX ~OR~ES I~'CE~ 31, 1959 T~ OEBIr ~t.AN¢~ AT O~e~t~Em 31, 1939 t~ CoM~n~o O~ Tin" rot.~C*alN~ ~I~

81AI0 . EX~NSES ON OEBENTURE5 SET U~ FOR TAX ~JRI:'C6ES DECEMBER 31. 1959 ~c 2

~1A15 - DEVERRED AHOR~I~ATION O¢ EXpcbJSES ON DE~NTURES SCT UP F-O~ TAX ~R~£S THIS ACCOUNT IS A MtMO~A~r~U~ ~CCOU'4T S~T UP fOR TAX pUrPOSES ONLY. THE CR~OIT BALANC~ O¢ ~IS ACCOO'IT A ~MMA~y ANALYSIS O¢ ~m~NSACTIO~S rO~ TM~ V~R 1~ ~OLtO~¢~: ~5,756.95 ~7.6~.5o 3z,863,~5 I~8.3~o-~

~lA20 - A,~.~TIZATrCI~ ~ EXP~NSZS DEBENTU~S ALI_C~4ED FOR TAX ~E~ DECEMI~R 31. 19~ T~IS ACCOUNT IS A ~MORANDU~ AC~CrJNI" ~V U~, rO~ TA~ pURPO~E~ ONLY, T'~C CR~)~V ~LANCE O~ TH,~ AC¢O~ ;C|,

~AIO . ~41AND$, TRAOE~IAR~, G~D WII.L, ETC~ CETERA D~E~F~ 31 , 1959 T~ MI~I~R~t~ I~T~II'ST I~l T,~" COmpAny pRIOR ?O T~ M~, IN "r~ ~HoU~I~ OF ~2,1~*I~.I~, CHA~S ~O ~I~ ~NC~ D~C~E~ 31. 1959 1,00~

~OLIO - NOTES pAy~<RLE TO B,kNKS DEC~ER 31, q959 THE CR~IT BALANC~ O~ THI~ ACCOUNT ~pR~N~S TH~ UNPAIO PO~TIO~ Or LOAN~ rROH V~RIOUS ~ANKS ON T~E C~pANYk~ NOTES, NOtE ~H[ ~HA~ t~N~ATTA~ BAN~ I~/~l/~~ CHEmiCAL B~N~ NEW yO~ THE Fl~s~ N~TI~AL CiTY T.~ HANOVER B~ I~/311~~ COMpany OF N~W y~RK 12i3~/~9 CR~bl~ eALA~CE ~CE~R ~l, 1~9 DU~ bAT~ O~ ~T~ pAy~BL~ AT DEC~¢R ~1, 1~59: DUE D~T~ I/1~/6o DUE D~T~ NE? AMOUNT DISCOUNT GROS~ ~OUN~ 0E~tID ~ 13,OO0,OOO.O0 1 ~ .OOO .OC]~ ,OO 1/I 5/60 ~ 1.991 ,3L~B .k~9 8.~11.11 2,OO0.00~.OO AHOUN~ 6,OOO,OOo,OO

IOLll - ~bTE5 pA¥;,E~L.~ - CQ~V~CIAL pApE~ DECE~E~ 3~ 1959 THI~ AcCOUN~ ~ECO~OS: T~I~ ~C¢0UI~ ~S OFFSET ~ ~ ~¢~1~ ~0 A~O~T NU. ~IOA~O . CaS~ t~ ~K$'~ ~0~ T;~E~E WA~ ~O ~"~.,~.~ L~ ,~HIS ~COV~T ~T O~CD~l~f: 31, 1~59

~0~11 - ACCE4JNT~ I~¥~BLK - SAI~SM[Nt$ ANO SU~R'~IS~t EX~NS~ ACC~JUNTS TH~ C~aIT ~ANC~ O~ T~IS A~C0U~T ~PR~NTS A~NTS ~U~ TO ~EM~S O~ ~U~ ~ OR~ANI~ATIO~ r~

~71 - A~OUNT$ ~,~yABL£ - SALESMF~S AND ~U~RWISIER$t £X~R~E A£COJflTS ~eEM~R 31, 1959 P~G~ 2 MON~N BMLA~eE dAN~A~Y 1, 1~9 F~e~UA~Y HA~CN APR,L MAy JUN~ Ju~Y AUGUST OCTOBER C~I~UlI" SA~A~Ie¢ D¢~S~ 31, 1959 CREDrTs ~O~ SUp£~VlSO~St E~pE~SC AeCO~.T~ DESIT~ C~r~IW OF M~rS 3 'ots~ .6~ z~8,~T5.55 ~ fifl,6m .~ 6~.~ ~8.9T z73,~.7~ e7o.59o.7~ ~5,59~,9z ~85,567,o6 313,3~9.66 37,83ea,3~ 3zg,3~z.o5 3o7,~89.3k 63,6e~.~8 ~ ,597-77 299,3zS.e9 25,8T3.84 219,~8.~5 176,oe8.39 ~8.983.9~ ~99,oT3.53 3~9,678,38 35 ,~.8h 356,~97.75 3~8,~0~,76 73.337.83 ~6~,185.T? ~79,~15.1~ 60,308.~8 £"2:4

2~I~ - ACCESS pAYABLE . ACCRUED PAy ROLL OECEM~R 31, 1959

~O~15 - SUN~ ACCOHNTS PAyABIZ DE-CL~BZR 31, 1959 THE CR~DfT S,~LA~C~ Or TNI~ ACCOUnt" R~PR~S~T~ ~HOUNTS ~AyABL~ OR W~IC~ ~AY ~ECOMt PAy~I~E TO SUN~V

2OLI~ - ~JNO~V ACCOL~TS PAyASLP ~C[~ER 31, I~9 18.OO ~6, ,95 3,816.9~ 2,~00.00 ll, ~oo,Qo ~,~75.88 PA~ 2

20~I~ - HI~EL~EOUS ACCRUAIS PAYABLE DECEMBER 31, 1959 (CONTINUE~)

~L18 . HISCELL3~NEO~ ACC~UAIS pAyAbLE [3CCEMBER 31 , 1959 ~,658.75 3.136.~5 bOO.OO (CQNT~U~D) 2~9

2Ot.1~ - HISC~LLAt~KOUS ACCRUALS PAyAOLE DECE~B£R 31. 1959 8,800.O0 ~,800.00 PAG~ 3 8,t5~.66 I,ooo.oo I0,~.00 4,54~.53 3,000.0o

2OL2~ ~ REGISTEREO ~IL AND PANCEL pOST INSURANCE pHEHII~V~ pAyABLE DECEHBE~ 31, 19~9 HONTHI5 ~EGI~TE~E~ MAIL1 pARCeL pOST ~ND RECULA~ ~lL ~IP~T~ eY N~W yO~K O~FIC~, ~OA~O T~t~L THIS ~CCOUNT ~ECO~O~: THE CREDIT B~L~NCC AT ~CE~ER 31, ~9~ l~ C~POS~ OF TH~ FOlLOWInG:

20~2~ - ACCOUNTS PAYABLE . INC0~4E TAXES WITHHEI~ FR~ N~E$1DENT AI_]E~4S OR FOREIGN CORPORATIO~ DECE~IaER ~I * 195~ THE C~¢O~T ~LA~¢~ or THI~ A~¢OUNT R~C~TS AMOUNTS ~AYABL~ TO TH~ COLLECTOR OF IN~RNAL ~V~U¢ FOR THIS ~CCOU~T ~¢ORO~: ~0L~0 - C~M~O~ STOCK OIVlO~N~ p~y~BL~~ coV~IN~ T~× WlT~E~O r~O~ ~ON. ~R~ ON ~IL~ IN TReasUReR'S D~p~RT~¢~T. 55,895 .~8

20L26 . AHDUNI'5 pAyABLE TO ~'OREIGN STOCKHOLDER~ - WITHHELO UNDER UNITED STATES TSLASURy I)F~OARTglE~T REGULATI0~ DECFA~II3ER 31, 1959 THis ACCOUN~ ~C0R0~: ~ C~OIT~ FOR D~B~TS TO ACC0U~T NO* ~IOAIO . C~H tN ~KS" ~O~ ~O~PO~I~ O~ A- CR~T~ TO ACCOU~I NO. "20L7~ - uNCLaimED CR~DIT~ p~yA~Ir FO~ ~OUNT (1} ~ STOC~OLD~ IS • C#TIZ~ OF TH~ U~ITE~ STA~ OF AMeriCA A~O A sUMMA~ ~ALY~tS O~ T~AN~,~CTtON~ FOR TH~ Y~ ~9 FOLLOW~: * O~TAIL~ ~Y ~TOC~OLD~ ~O ~MOUNT~ ~tTHH~LO ARE ~EPT ~Y TH~ TReaSUreR'S 0~PA~TH~T

20L2T - INC~ TAX pAYABLE ON TAX-FRE~ CO',~NANT INTERI~$T pA)O ~R 31, ~959 T~ C~alT ~LA~C~ O~ TNI~ ACCaUN~ ~P~¢SCNT~ ~E AM~T O~ ~ED¢~L INC0M~ ~AX ~AeL~ 0~ INTerEST

2OL30 ~ ACCOUNTS PAYABLE ~ CITY, STATE AND NATIONAL TAX WITHHE40 DECEMBER 31 , 19~9 ICO~TINU~O)

2OL30 . ACCOtJNT5 pAYABLE . CITY, STATE ANO NATIONAL TAX WITHHELO DECEMBER 31 , :959 PA~ 2 DtTAIL~: AMOUNXS ~U~ACCaUNV C~¢OIT BALA~¢~ WIT~LO FROM ~REOIT OAL~NCE TITL,,~,m.~.E ~ ~ALA~IES TAXES pAID $TAT~ Or NEW yO~K 126.16 196,007.00 127,~9~.9~ 68,6~8.E0 3 STATE OF I.OIA.A ~,057.39 7,603.~3 7,5O5.98 2.155.24 4 SWAWE OF KmNTUC~Y 31,443.93 120,8~6.91 117,78z,B3 3~,508.o1 6 swAw~ o~ O~c~oN ~4.40 I ,o2o.9o 96~,26 281 ,o4 7 CITy OR $¢~TO~ ~B3.9~ 52%77 1,1~O.71 @.OO 8 ~ITY OF LOUISVILLE 21,~.78 80,211.39 79.1~6.t5 22,919.02 9 ~C~A~TON ~G~OOL DISTriCT 617.98 ~II.9~ I,o60.9~ 69,00 SW~W~ o~ VC~O~T 22.~I 1~6.~9 11~.47 ~6.~3 I~ ST~Tm oF A~IZo~A Z4.00 159.56 13~.36 ~0.~0 ]3 STAW¢ OF CO~OR~OO 86.~7 5o7.75 ~2oi~5 173,77 l~ Sr~w~ o~ MARYL~"O 35~.6~ 1.656.39 1,585"66 ~5"35 15 SX*TC OF ~O~A~ 39.98 18~.76 IF6.6~ ~8,12 16 $TA~= o~ lO~HO 34.C8 179.98 157.87 56.19 I7 ~w~ o~ AL*aA~A I~O.87 561.63 566.5~ 135,96 18 OIST~ICT OF COL~I~ 102.1~ 2~0,37 291.73 50,77 20 MAS~C~USrrTS I,~O5.29 1,017.46 ~87.83 ~1 Pu~o R,co 531.~9 38~.91 146.58 24 t~×=~o. I.~6.57 4.738.o~ ~,483.0~ 1.691.57 25 L~.c~swc~ CmT~ ~21.O3 t86.O~ 3~.96 26 $ouw~ C~OLINA - l,l~.8~ 1,13~,2~ ror~ 6~r26F.6~ 4~or6~*~ ~77,817.91 CR£DI~ B~LAN~E OE~E~BER ~1, 1~9 • s OF O~C~ 31 , 1958.

20L33 . SA~S AND ~Z TA~ZS pAyAB4E TH~ CR~I~ B~I.~HCE ~ ~CEMS~ 31. 79~9 I~ CONposEO Or TH~ rOLL~I~= LO~ Amct L~ 38,5]+ M,, r'~ 8.29

2OlI~ - A~jBUNTS P,~yABi~ - SC~IrH CAROLIN#. INCO~ TAX ~ITHI~ELD FR~4 NONE~II~I$ OECE~ER 31, 1959 a,338.5~

20L37 - ACCOONTS pA'/ABLE - STATE U~I[M~iENT INSU~tANCE IA~ - EH~LOyEE$t CO~¢ff~IBJTIO~I ~CEM~'R 3q, 1959 THE CReDiT ~LA~ Or ~ ACC~ ~mR~S yH~ U~PAtD ~OmTtOM OF ~p~O~t ¢O~R~UT~O~ ~OR Cm~otT~ VOm A~OUNT~ ~ITH~LO ~Y: Ntw y~ ~rlC~ TO~AL P~S TO VARIO~ ~AT~ iN 1959 ~I~" ~AL~ D~¢~R ~1 ~ 1959 ~35,67

20L3~, ~ ACCOUNTS pAyABLE - ~EO£p.AL INCOME AND 0£0 AG~ BENEFIT TA×[5 ~ITHHEI.O FF, O~ EMPLOYEES DECF2~BER 31 * 1959 A sUMM~RY ~N~LY~IS OF TR~NS~¢TION~ ~OR THE Year ~959 FOLL~'S. D~TAI~ ~C ON Ftc¢ IN TH~ p~y ~OLL D~TME~T. C~ED~T BAlaNCe. J~UA~Y I. 19~9 NEW ¥OR~ OFrlCE TOTAL p~yME~S 781.6o9.12 ~o,o33,~83.79 B~LA~¢~ ~HOWN ~BOVC R~p~NT~ ~c~UlSlTION~ ~OCT~G FRaM H~G~R OF A~RICAN ~U~LI~.

20L~ ° ACCOO~T$ pAyA~-E - ~ATE $1CXB[~ C~'N~TtON TAX - EM~LOy~5t CO~RIBOTION O[C~Mm~ 31, 1959 c~o,v BAL~ JAnUArY I, 1~¢~9 5.39o.29 7o9.5~ ~3.69 6.3~3.52

2OL~17 . NE~ yORK STATE DISABILITy BF~IE#'@T~, $~SURANCE P~IU~ PROVISION, AND WiTHhOLDING APPLICA~ILE TO RADIO AND I'ELEVISION TA~NT OEC~ER ~I, 19~9 ~ T~is ACCOUNT IS ~¢O~O T~ ~mEMIO~S mRoVI~O ~OR OISAB~LITY ~N~U~A~ ~O~ RA~IO AND ~VI~ION LE~S: ~WRTI~NG'I ~.5~

2~.50 ° ~U~T$ pAyAI~L£ - HOSPITAL ~ERVICE INSURANCE P~MIUH$ D~I~IETED FRI~4 E~pLOyEES~ SALARIES AND ~AOES ~CEH~ZR 31 , 1959 THE C~E~IT IIALA~[ OF ~HIS AGC~UNT R~p~sE~rS TH~ AMoU~ DUE ~CS~'ITAL S~RVlCE ASS~.~A~IO~ FO~ 1 - cREr,,T~ FO~ C,~IT~ mO ACCOUNT No. *rgoo . $~LAF~I~S A~ ~'~X~'r ~0~ ,.MI~UNTS ~OUC~'[~ p~y ROLL D~'~I" 2,65?.~

20L60 - ACCOUNTS pAyABLE TO EMPLOYEES DECE~ER 31 , 1959 THERE WA~ NO ~L~N~E IN THIS ~CCOU~T ~ DEC~ 31, 1959.

20L~ . UNELAtMEO ~'~GE$ pAYABL~

20L63 . UNCLAIIMED ~,mCiEB pAYABLE 0¢CEHBER 3I, 1959 pA~r 2 YEAR 19~f 1956 1955 195~

R~como~m 1953 2OL~~ . UNCLAIHED ~"aG~ pAyAI~ iXCE,I4~R 31, 1959 pA~E~TS OR .93 9.78 .96 2.20 1.05 38.17 513.7o 3~.35 ~65.~5 56.78 171.82 I. ~ .27 I.ou,svl LE~ 136.h3 3.71 R~ I ~VlLL£ 1.91 V,R~tmA !~,71 TOI"~L 195~ 1.6go .~I 896. g7 ~2.7g 1952 ~: ¢.t,,..~SrON 1,7 ~7 .t~6 I~'35 ~c ~NTC, S 80.70 1.61 RC lO~Vl t.Li I~ ,II .'~9 1951 ~: A~L~y 5-91 ~HARL~ ~TON 35,91 -- t~t',~ ru c ~;'~ h9,55 .o5 $c ~. ,'o~ 5.g8 .88 1.91 1~,71 281.~h ~q6. Wi 63.J;9 1,733.11 ~151.79 ~5.87 79 .O9 2 ,et~.B2 ~.36 I ~.72 i c#7 .og ~i,9,19 5-9~ 35.91 ~9.5o 20.53 ~.6o ICo~I~uEp} ~47

20L63 - U~II4EO ~,~AGES pAYABLE PA~E YEA~ 1951 pA~N,r~ ~- Ur4~L~:~ "a~ ,~0 1~a~ $~T~ t~" N~W ,3~" ~t~O~R ~¢~¢,'r L~ ~*r, LLr~a~; T~3A5 ~r~u~. 1/19A9 2A3/57 16,535.~4 I/~0]~49 THmUG. 10/~2/~I 12/~0/~7

201_65 - ACCC~NT FAyABLr T(J 6RITI~ AHERtCAN TOBACCI~ C(J¢4PANY, LIHITED, ~C1~ EXpoR'r ~lRl~lt~ ARRAkK~F~IENT$ C~CE~:R 31, 1959 . CREDITS FO~ ~TC.n FOR LIAbiLITY TO BRITISH AM£RICA~ TObaCCO COMPANY for LUCKY 5TRt~E, REUTER* OATED JUUE 17, 19~? ANO EfFeCTiVE dU~V I, 193~. ~* DE~ITS ~OF~ A SU~C'4~F:y A~At.~'~I~ Or TRANSACTIONS tom 7H~ Y~ ~9~ ~'OLLO~ CR~OI~ ~ALA~Ct, J~UA~y I, 1959 TOTA~ CRZDIT BALARC£ DECEHO[R ~1, ~59 A~UN~ 195,689.27 5oo,325.~7

20_~O - ACODUNT~ pAYA~,E FOR ~CR~p AND I NTCR[$T ON ~RIp* $~1~ F.LKrrlFIC, ATE$ AND 7:g GOLO N~T[$ ~CEPI~R 31, 1~9

FOR pA~4CNT Of" SCRIP AND INTerEST ON ~RIP~ $TO~.K CERTIFI~T~S ANO 7~ ~LO NO~$ TH~S ACCOUNT ~C~O~: I~T~T ~L~ O~ C~ ~o CC~O~ ~BI~ ~C~ 1D0 ,~ 3,00

20*~75 - OLD O~TSTANDI~ CHECK.S P,~yABLE DECEMBER 31, 1959 A ~UMM~m~ ANALy~I~ O~ TmA~SACTI~ ~O~ TH~ Y~m I~9 ~L~OW~; [CON~t~U~O}

20L~5 - OLO 0~'rSTANDING C~EC~ pA't~LC OEC~'~E~ 31, 1959 pA~ 2 CR~OIT BA~A,~¢~ JANUARy I~ 1959 A~O~n~%" ~F C~¢~.S ORAW~ STILL OUTST^,~OI~ AT D~C:H~Em 31, 1959 CHLCK W,~ CH~CKS C~CK: Y~AR 19~ ~ ,~I~.50 3o3,~a 536.96 Y~ t957 6o.I5 1.59 R~TOREO - C~A~G~m TO ImCO"~ TOT~ ~R~OITS ~AyM~NT~ OF Ok~ OOT|TAM~I~G C~ECK@ By p~to ~O TH~ S~T~ OF ~W J~RSE~ U~R T~EN iNTO INC~ TOTAL C~OIT B~L~=~ D~¢~R 31, 1~9 6,285.~,5 61.7o 131.96 ICON~I~U~Ol

--4X ~r m O, o ¢ • o .~ .4° x ~ ~ o o -- ~ o• ............... i~~ m t:° o m .......I!

ZO47~ - ~LAIMED CRedITS pgYA~L~ DECEMBC~ 31 , 1959 25S

2OL7~ - L~g~LAI~ED CREDITS pAyABLE DECE~4B~R 31, 1~9 pA~ 2 A $~A~y A~A~.ySI~ OF T~ANS~,CTIO~ fOR T~ y~An 195~ ~OL~S~ ~R~OIT ~ALAnCC dA~OA~y 1, 1~9: CR~Ot~ BALaNCe OECE~B~R ~I, I~59 CRedIT ~AL~N¢¢, DZ~R 31, 1959, Co~mO~D Or TH~ rOLLO~IH~: h,zfg.?o 8~1,53 5,I~I,~3 9o3.00 9o3,oo 56~.oo 561.oo 62~ o 6 8.61 26o, I SALE O~ 1945 ~9~6 1948 1.o3 ~95o 6,8~ 1951 8~.I~ 1952 ~9.~8 I?0,89 1953 ~.~8 5,oo ~95~ ~93.78 1955 51T.~ ~956 59~.9o 19~F 5O3.OD ~958 8~o,~5 '95~ 69~.7~ 139,o8 1,50 127,10 1.50 11,25 ~5.00 10.00 20.00 97.00 TOTAL 1~O.58 1~8.60 Io,38 1.o3 6.82 6~o.87 h6~.73 518.78 5~T.~4 6oi .90 937.~5 15~.o0 (CONVlNU~D1

20L[~ ~ I~ICLAI~O C~EDITS pJ.yABLE OECE~ER 31, 1959 ~5fl RO~A~Lp H~DLIC~ PAG~ AMouN~ 63.T5 1~.79 2.62 3~0.00 6.00 84.00 6.00 3~o.oo 6.00 8~.00 ~3.98 t!.~o 3~4.oo 6.00 6.0c 18.o0 37h .oo 5 £6 t.%36 6.00 ~4.0D 8.Lo 6.00 IO~ .00 ~7.50 6.00 2~.00 6.00 6.00 10~.00 6.00 9~.50 3.00 6.00 2L .00 6.00 6.00 1¢~5.0G *0~.00 21.2~ ~.00 6.00 ~57

ZOtT~ - ~CALIMED CREDITS PAYABLE DECEMBER 31, 19~9 D~TAI~S OF UNCLAImeD 01VlDCNO~ Y~A~ 1959 ANOU~T I0.00 6*00 I05q00 21,2~ 5a ,~0 2 -75 21.25 6.00 M~ORAN~t~ pA'OI~T~ OF ~NCLA~MEm ¢~DITS TO ~HE $TAT~ or N~W J~R~Y UNOmR ~C~ ~AW~ ~OLL~S: 7/I~/~5 TH~OUG~ 1/19/~9 ~/13/57 ~.73o.69 RE'motoreD TO ST~T~ O~" NEW J~RS~'/ ~o~ fHIRO CU~TO~I~t. AC~'*O~: DIV~ C~C~S AND ~OC~O~ O~ ~AL~ O~ STOC~ RIGHTS 1.360.o~

2CL~ - A~E~} CIGAR ,~ACHINE ROYALTY PAY~LE 0~R 31, 1959 TH~ CR~OI~ BA~.ANC~ O~ T~I~ A¢COONT RCmR~CNtS • LIAmlLII~" for ~O~ALTI~S pA'tAB,.~ TO INTERNATIONAL crier ROYALT¢ eA~¢O U~N PmOOVCTION TOTAL NO* O~ 2-T0 a~ca~zs $750.00 2 7~ a~c~zs 2~0.~ Clgaa b~c~l~gs CMARLCSTO~, 5OUT~ CAaO~INA 62 6~ ~8 18 8o (CONTI~U~O)

20L~O - ACCRUED CIGAR M~MiN[ ROYALTY pAYABLE m~D4BER 31, 1959 PA~ 2 ~7,781 .T82 ~92,5~o,~16 4~o,36zr 6~3 ~0,~6z,68 ROyALT~ O~ FLAT ANN~A~ ~T~L TYm~ Or NUMBER Or ~N~AL M~.I~C ~ACHI~ RAT~ ROYALTY C"~RLCS~O" Baancn 2-~5 56 2~0.00 lh.O00.00 6 250.00 9~7.97(1) AD~U~T~E~T~ CHA~iD TO ACGOUNI NO. ~ .(~ 39,3@5.39 h~g.968.2~ 513,333.62(3) {3} Bo~ ~CC~AL ~N~ m~YW~TS L~CL~E ~ ~T AMO~N~ O~ $IO3.~ W~¢n WA~ ~MA~E~ TO ACcOVNT NO.

20~ - FREIGHT ~ND SHI'ppE~G E~=~.NSE PAyAbLE OUTBOUND WAREH~E SHI~FS I~,~SER 31, T959 T~ CR~'tT ~IJ~e~l:~ O~" T~rs A~C~NT F~p~E~E~T~ ~'~E ~TtMA~'E~, I. IAeILITY ~'OR ~'~EIGRT AN:> SHIPP~ ~XP~E

~0L92 - CONTINGENT LIABILITY UNDER LETT[R$ OF CREDIT DECEMBER 31 , 1959

2OL9~ - ~TTER$ OF CREDIT DECEMBER 31, 1959 UNDUe LE~TC~ O~ CR~OIT,'I

2OL~5 - SUPPLE~4EN'-ARy GF~D~kp LfFE INSURANCE PREMFUM~ PAYABLE ~CCCZMB~,~ 31, 1539 A su~Anv #.~ALy31~ Or ~RA~SACTIONS ~'O~ TH~ y~A~ ~959 ~'O~OVS~ p~M~U~ pAr~ 27,576.88 ~,821.56 32,398.~ 5,9G3.36 1 ,@$7.98 7,oI~.3~ ~6~.o8 ~5.8T 307.95 ~03.6o 53.13 356*73

20L~ . ~llp LIFE I~URAN~ P~MIUHS PAYAB~ ~W~ER 31, 1959 D~DU:T: ~[~IT ~,~LA~ D~¢~I~ 31, I~5~ ICO~T INU~1

~OL9~ . ~0op LIFE IN~URAN(~ P~EMIU~I~ pAyAB~ or 9~PTc~t~ 30~ 1959 INTereST CR~OIT ~/~ DI~ILI~Y CI~$ ~p~ROVCO T4XEG p~IO ~N Q~S~ C~LE~OAR y~A~ 790,~9~.G6 ~m0,~9.33 1.32~ .ea~ 9o8.97~ .~9 3,~oo 158,6~5 3,31T I ,oi~3, o6o 13,8o,6

20L~7 ~ ~.RC~I~ AC~IDEf~rT AND HEALTH J~NF) HOSPITAL EXpEb~E INSURANCE ~"~C~41U~5 pAyABLE A ~U~,~A~~" ,~.~LYSlS ,~e" Tr~A~SACI-I,,~ ~O~ I~H~ y~Ar~ ~95~ fOLLOWS:

2C~_97 . C~OUp ACClDENT AND HEALTH AND HOSPITAL EXPENSE I~URANC[ PRE~IL~5 PAYABLE DECF.~KR 3% ]959 FAGE ~NCE JAN~Y I, I~9 AmP P~Mt~S; pROV ~D~m [×tESS Or A~oUNT~ WlT~H~L~ OVER • R~M~UM P~y~HT~ ~CC~U~T D~ND~NTS* TOTAL _O_ -O_ ~D- 27.96~.o6 ~T ,96o .o6 6of~,oo 6~h6B,oo ~/r~.o6 6o,g68.oo 88,~28.o6 _0_ -0_ _0_ II,~9,83 7.8z6.oo -o. 7,826.00 26£

~OLIO - ~FERRED STOCK DIVIOENL~S PAyABL~ DECEMBER ~I . 195~ DI~I~N~ DAT~ TO $~oC~DE~ ~ PAR V~C~ AT ~AT~ ~lT Nov. 2~, 19~5 ~c. 10, 1958 5~.783,10U.00 e18 From. S~. I~59 MAR. 10, 1959 5~.783.100.OO ~0 ~U~. ~5" 1959 S~P~. IO. 1959 5~.783.100.00 ~I NOV. ~b. ~959 D~:. IO. 1959 ~2,7~.IO'9.OU }/~j ~mi ~i 1959 791,7~6.5o I/2% Ame. I, 19~9 791J~6.50 I/~ UUCY I. 1959 ~91 .Fh6.~o I/~ OCT. I. 1999 791,7~6.5o 3,958,73~.5o NU~C~ ~AT~ ~I~ TAX p~OS~S STOC~NOL~RS(2} DIVIdeND A~UN~ 217 JA~. ~, 1959 ~8~ ,6~ ~91,~61.86 191,7~6.50 ~t8 ael. I* 1959 ~62.8~ 791,~83.68 791.#~6.50 219 du~Y I, 1959 26~.8~ T91.~3.68 791.~6.50 2~o oct. I, 1959 ~ ~ 791,~6.50 TOTAL 1,O67,O3 3,165.918,97 ~R~IT BALA~C~ D[EE~[~ ]I, 1959 (]J NOL~S WlTNHEL~ ~N~ UNI~ ST~T~S TReAsURy ~p~RT~¢NT R~U~TIO~S."

3OL20 - CONMON STOCK DIVIDENDS PAYABLE DECKMSER 31 , t959 A SUP, WARy A~ALYSlS Or T~.~NSACTIONS FOR TM~ Y~AR 195~ rOt.LO~S: N~S£R D[CLA~EO OF R(CORI1 pAR VA~UE ~ -- PAYAI~L~ ON_ AHOL~NT ~I7 OCT. ZT, 1959 NOV. 10, 1959 162,813,050.00 4~ O~c. I, 1959 01VlO~ND~ pArD I~ 19~: WIrHNELD U~O~R U.~. TR~ASUR~ N~T A~OU~T TOTAL DIVI~NO D~PARTME~T ~ID TO AMeUNT Or ~I~ M~. ~, 1959 22,29'~.70 13,002,T45.30 13,o25,o44.oo Z15 Ju~ I, 1959 11,06~.55 6,501,~5~.45 6,512,522.00 ~16 sc~T. 1, 1959 1o,95o.o5 6,5oi,571,95 6,51~,52Z.00 G5.o5~.55 12,5o7~556.g~ 32,~62,610,o0 ACCOUNT NO. "~{LI~ - D~VIDgNU~ pA~D ON C~HMON ~TOCK.I' (2~ INC~U~ AMOU~ P~p ~0 GUARANTY TRUST cOMPanY, WHICH AR~ TO B~ eA~O HOL~ OF UN~XCH~D A~R~CAN CIC~R~T~ A~ CIteR CompAny ~TO~K; S~ ACCOUNT NO. ~'~A~0 - C~$H ON ~[P~IT WITH ~U~A~Ty TRUST C~P~NY ~O~ OlVt~Z~S P~Y~BL~ UPON ~URR~O~R OF ~TOC~ OF AH~RIC~N Cle.~RETTE • ND CI~AR Ce~PANy.

~0L20 - FNTER~ ~yAOLE 0~ SHORT TERH ~ ~ECEMBE~ 31. 19~9 THE CREDI~ B~LA~C~ AT [~CE~m~ ~?. 1~ I~CLUO~ ~NT¢¢~¢~ mA~'~BL~ AS FOL~.OW~ PJYAeL~ ~o MO~N ~UARA~y T~US~ COmPAnY ~V NEW yo~ TH~ H~OV~ BANK A~OUj 6~,~36.12 62,o~3,33

~0L~0 - CASH ON ~POSrT FOR PAyME~ OF INTE~ST ON BI~ND~ THI~ ACCOUN" R[CORO$: 1 - DmmlT~ FO~ ¢~S~ m~O~l~'~O "alT,~ GUaRanTy T~U~I~ CO~ OF N~ yOR~ A,~O CH~I~A~ A ~U~Y ~NALY~,~ O~ T~AN~ACTfO~$ ~'O~ V~ Y~ 1959 ~'OLL~: B~ANCE g%so~ 857.0o ~L 15, 196Z ~8,185,~ 1,139,505.00 0¢~o~ 15. 1969 16.I~0.00 I,~9~.270.00 GU~WY T~U~T C~MJC~L 1,139,om5.~ O~mlT ~39.00 857.00 ~8.665.oo 630,000*00 ~5,6~5.oo ~77,5~,5o

~C£M~R 31, I~9 T~ CREOST ~ALA'~C¢ ~T ~<:C~ 31, 19:~ ~S ¢<~HPO~¢~ O~" THr ~'OLL~ClN~: CReDiT BALAN~ DCCf~ ~], l~t~9

50L~I~ . C~F~ET TO PROVI$10~ F'O~ AOV[RTI$1NG AR~ANGE.~TS - I.E~ CICARS DECEMBER 31, 1959 ~A ~,~[j B. A~ME~T~ AHOUN~

DECENtER 31, 1959 T~¢~ e~,v tt,~kA~Ct" O~ ~I$ ACCOUnt, ~Er'RE~TS CS~r~ LIA~IL~T,ES rC1~ AOVE~TI~t~t~ COOpE~TIO'* T~ ~R~r',~ ~,XL~eE ~,T ~¢~ 3~, 193~ I~ ¢~,~O~, O~ THE ~'OLLeWt~G~ ~75

~lJl. 20 - ~w~O~ IS I ~ F~ ADVE~T pS I N~ ARRANG[MENT5 OECCMBEF~ 31, I~'~ TQrAL C~S G~A~m TOYA~ 6T2,50 170,I0~,59 18,~67.75 8,9h7.6o 2, ooo . ~o 2,ooo,oo PA~c ~9,~,59

~TC,

DECEMER 31, 1939 {CONTINU¢O) 27~

5(~_2~ . ~O/1~1~4 FO~ F~G?~ZINE ADVERTISING T~ C~DI~ ~ALANC~ ~T DECE~BE~ 31, 7~ I~ COUrSeD Or r~ rOLLO~tN~: 8~A~D A~D MEDIA LL~PTf STRIKE TO~AL LUCKY $TRfK[ L~t~KY ST~IK[* PALL ~.LL. ~l~yT~t~. tl~T P~RAI~ N~¢~LLAt~OUS F~LICATIO,~ A~ PR~RAM~ ROI.TAN -1 Sizes Nr~CCLLAN~ PRO~4M~ ANT(~IQ y CL[O~TRA Nr~c~tCA~c~s PR~AMS O~pA~ME~T O~ NA~Ur~CTU~

~CE',~e 3~. 1959 (CoNTiNUED}

~-26 . ~F~I$10~ $'0~ NK~pA~R ADVERTISING DECL~IBIZR 31, I~9 L~CKYSTRpKE 21,75~.37 20,767.95 FALLM~LL R~COLAR COLLEGE TeT~ ~ALL~LL TA~TON R~ULA~ COLLZG~ 600.00 VmTAL TA~YTON H~LF & HALF R~L~ 33,862.3~ 31,I~7.3o 3,861.97

r~CE~R 31 , 195~ TH~ CR¢~I~ DAL~NC~ ~ THP~ A©©~ ~[~SE~T~ AHDU~VS DUE FO~ MI~¢~LA~ZOUS ~©~Ze~ISI~G ¢¢~ ~41~ ICOh~ r ~u[Dl

~ - ~ISION ~ SUNDRy ADV~TI$1~; QECO4BLI~ Jl, 1959 PAGE 2 5H~ ~X~R~ 70,00 ~t'~¢l~C mm~OTtO~ t.kmm$ 3,5~3.68 C~u~xv C~un mwam~ p~nAM: TOT ;~L TA~yTON

~Ol.~k~ ° pROVISION FO~ SUN[~y ADVF~{TISING D[C~B~ 31. ~959 pArNT~ Sl,:t.. RICHMO~C*. Vl~1,~I#, ArRPO~T ~IS~L$,Y~ Tora*k HIT pARAD[ LLt~Ky ~TR~K[. ~ALL MALL. TAR[YTON. HIT p~qAD[ TOTAL LUCKY STRIKE, pALL l,~U.~ T~RE~'~ON~ HiT pAR~I)[ l,V{:~y ~TRI~(Z. mALL MALL. T;{REY?I~fl ~p{cIAI. pR~(~TI~ P~ANS gP£CIAL ~LA~ B~. t~C~I"IV~ pLAN 0 I • 7,~97.16 7.59T.16 65o.co ~oo.oo 1 , ~o0 .oo ~35.0o 12,3~I .oo

50L29 - ~0~ISION ~0~ EXiT ADY~TISIN~ T~ Cm~pT ~ALA~CE OF V~l~ ACCOUNT R~F~NT~ AMOUNT~ OUE rO~ MA~AZ~N~, NCWS~ArCR, ~OIO, ~Y¢.. ~XpORV ~'~ C~EO~T ~*~L~N~ ,~T D~C~ ~1. 1959 I~ ce~po~ O~ T~ rO~.L.O~lO~: IC~NTI~U~D}

~OLZ~ - pROVISlC~ FOR OCp(]RT ADVL~TISIM~ OECEM~E~ 31. 1~9 o~m~z 12,6h4.01 37,858.67 ~,o31.33 19,996.c~ z37.81 65.~3 373.68 13.13 18,5z PA~¢ 2

~01~1 - pRGY~tO~l FOR RADIO ADVERTISING O[CErS£R 31~ 19~9 (CO~TINU¢~I

~C~,.31 - pROVIS~ON FOR R~IO A~)~FJ~T]SlNG DEC~ 3~ • 1~9 PAGe 2 RADio SPOT A~NOU~¢¢~CN~S . RegULAR LUCKY STR JKE pic_L MALL TAREYTON RJVI~A LUCKY ~RIKE, PALE ~LL~ T~EYT~* ~17 P~DE ROI -TAN RA~FO SPot ~NOUNC~M~NTS -- ~ETWC~ H~RRY B~=T~ S~O~ - pA~.L HALL LUCK~ $TR ~KE pALL ~L~. T~E'C~ON ~IV IER~ 32,~39.99 21.432.72 3.764.29 36.70 166.~ %331.9~ z,126.68 46.~5 319.1o

5OL3Z - ~OV~$1QN FOR TELEVlSIOM A~V~T~SING ~CD~B~R 31, 1959

DECEMBER 31, 1959 TH~ C~OI~ BALANCe A~ DECCM~£R 31, 190~ I~ CCM~OS¢O Or ~H~ rOL~¢~I~G; JAC~ B~NNY B~C~ELOR ~ATH[~ R~U~ COLL~ BA~K£rS~LL G~E LOCK-Up ~ HU~T FILH CC~M~RC I~ LUCky $V~ IKE ~ IVIE~A LUCKy STR tK~ pALL MALL TAR[W~ p~c~ 2 ~,695.oo 11,235.7~ 837.0o 13,35q.25 15,5h5.~3 2,w¢5.~ %877.52 hTo.~o ~,~76.20 8,000*00 270.C~ tt,365.79 31.950,76 ;~1.22 15,3~T.07

~Ot3~ - pR~ISION F~ DISP~y ADVERTISI~ D~CEMB~R 31, 15}9

~'~L~ 00"QO~~ L m CQ'O0~ ~ij~L • ~ U~I~N~(~ ~r~v~t~ ~lo~J~ lv[~1~r~ ~Vs ~C, ~r~loc~ S~ZI~ l,~ ,~± a~ ~U~alO~ -~c,171~v~l~ - NV~-IO~ ~VH ~I~ ~o ~P~IO~ ~C=6L ~ ~13~3~30

5OL3~ - FRC~'r$1ON ~OR D~$pI.Ay ~TALLATIC~ ANO SPACE O£C~E~ 31 , 1~9 T~R~ WA~ NO BALANC£ IH THt~ ACCOU~ ~T ~[C~¢R ~1~ 1~59

~OL~8 - PROVISION FOR RETIREH~24T BENeFItS DECK~E~ 3~, ~959 136HT6.26 13T,0~,3~ ~94

~OL~ - pR~I~ION FOR RETLREME~ BENEFITS DECEMBER ~I, 19~9 pAGe 2 9,951.91 73,3O~.Z4

5OL5B ~ pR~VISION F~ RETINEM~NT B~NEFIT5 OECEr.~3% 1959 PAO~ B C~COI~O BY N[W ¥O~K OFFICC F~ CHA~ TO; {CONTINU~} OTHER: (CO~T~NUC~I 923 . EM~,NCE~I~ ~ROUP -- RiCHmOND. VIRGINIA 9~ * BRAN(H A~INIST~ATIO~ TOTA~ ~MOUNT mmovlo~O O~RINC 1959 5,120.00 pAymenTS ~U~N~ 1959: AUTHO~*Z~O pRiOR TO JA~V~mY 1, I~: 0THE~ B~ANC~ N~W yORK Or~lC~ TOTAL AUTHOmlZE~ ~OB~QU~r TO J~U~RY 1, 19~9: 0T~eR DR~NCH~ ¥O~L PAYmeNTS MAO~ DUR,N~ 1959 N~T OV~UpROVlS#O~. CR~OIT~ AT ~ECE~BER ~1, 1959 TO: R~T~E~NT B~N~FIT pA~M~T ~,7~0.58 ~1 .o9~ .z9 73,o3o.~ GROUp L~r~ pRemiuM 6.72 339.9~ 73.pz ~2,G26.35 19,173.h3 1.30 /-5~ 1z,oTB,61~ 3,513.96 7~8,8~ 102.10 81,57 891,753.F8 TOTA~ ~,73~.3o 72,3~0.34 ~I,168.8] ~,9z0.53 ~98,8~I.o9 755,~8o.3~ 86%a26.19

~O~_~8 . P~VIStON F~ RETIREHENT BENEFIT5 OCCC~CR 3q, 19~9 pA~ 4 -O-

50L60 - RESERVE FOR EI~LOy~RIS LIABiLITy INSURANCE DECEMBE~ 31.195g

5OL6O - RESERVE F~ EMPLO¥£RIS LIABILITY ~NSURANCE OECE~ER 31, 1959 CR~OIT ~ALA~CE, JANUARY I. 19~9 COST~ COVERING EMpLOyEEs AT ~AANCH~S~ CpGAR BRAN~MES; C~ARLC~TO~ PHILA~LpHA 24,~8.67 ~i29 TOTAL ACCOUNTS: TO~L ~E~T~ ~U~I~ 1959 1,906.85 IO9,481,39 TO~AL p~G~ 2 1~4.69o.59

50L60 - RKSERVE FOR CMPLOYERm5 LIABILITY INSURANCE DECF~4BER 31 , 1959 PA~¢ 3 EXp~NSE~: C~ARG~S FOB pA~NTS OF AWARDS ~ND PAYMENTS FOR SERVICES or OUT~lO~ DOCTORS, AWARU~ HOSPITALS ETC* CI~R BRANCH~S: C~ARLESTO. 3,~95.95 1,941.58 p~ILAOELP~IA 637.50 179.90 WJLKES-BA~R~ 49.00 OTH~ B~ANCH~S: Loumsvm~L: ~,723.00 I,~75.77 N~s~v,cc~ 6~.O0 173.79 To~ B~CH~S ~3,~33.86 ~3,616.27 p~NN~YLVAHIA ~ALK~IE~ ~*OO TOTA~ ~3,133.86 !3,769.Z7 GHARG~ FOR LC~AL F~ A~D PAY~NT~ Or ~U~RY FEES TO ~TATE~ W~R~ ~E AR~ pREM+UM ~Ay~ENT~ ~O mNSURANC~ ¢OMp~N~ FOR ~XCE~ COmPeNSATiON ON ~MPLOY~R~ LIABILITY IN ~TATE~ in WHICH W~ ~ ~CLF+IN~U~Z~S TRANSFERS OF OVER=ACCRUaL TO T~ FOLlOWInG ACCOUNT~: A~COUH~ NO. ~2~ - UND~TRIBU~E~ ACcOUnT NO. "301 . N~W yORK OFFIC~ ~XpORT ~LLIN~ EXp~N~E - ACCOUNT NO~ H~IO - ~AL~SMKNI~ALA~T ACCOUNT NO. '131t - 5~ME~IS ~LARY A~D ~XPKNSK - G~NKR~L LiNE CI~R~" ! I ACCOUNT NO. "~1~ * T~TON E~E~O~NCY OrFfc~ Exp~N~n 11.~0 TOTAL O~ITO 5,437.53 hz?.o8 8~i.oo ~9.oo ~4,3q6.58 4,598.77 237-79 3,903.65 TrOZz.TT 3g,810.~3 36.9o3.13 5,3~T.O9 3,550.20 6z ,4o8.82

~OL~0 - RES~RVZ FOR ZMPLOYER~ LIABILITy ~N63URANCE OECEMBER ~I, 1959 DETAIL5 OF C~GES FOR L~A~ FE~ ~NO pAyMENTS OF I/I/59 -- 6/30/59 182.93 711/59 " I~/31/b9 161.95 TWO ~[R?IFI~A?[~ DF COMpLIAN~ ].00 ~T~T~ OF VIR~INIA~ 2/17/59 - ~/I~16o N~.5o I~U~T~I~L ~ZLF-IH~UR~I~ FOR 1958 31G.T6 ~TAT£ OF NORT~ C~R~LI~ M~INT~A~C~ EUND TAX DUE FOR PERIO~ 1/I/5~ TO 2,~B,49 7/~159 - 613olGo 3oo.oo F~ FOR ~ELF-~U~ANC£ A~P~ICATION 5.OO COH~ON~EA6TH OF p~YkVAN~A: FEE FOR EX~APTiOH PERMIT - WORKH~NIS COHP~N~ATION ACT ~0.00 G/~5/59 . 6/~5/6o 156.q3

5OL60 * RESERVE FOR £MpLOYER¢5 LIABILITY INSUP, ANC~ DECE~eER 31, 1959 473,o3 75.00 ~oo .oo

~OL~ . ~OPISION FOR ~L INCOME TA~ PAyAB~ ~MB~,R 31, 1959 AmVaNC~ ~,~M~W~ o~- ~'t~W~ I~ TAX ~ ~roR yza~s a.o l~r~Esm THEmCO~" ~O'T SaLa.C~ ~C~.~C~ 3I, 1959 ~3,6~0.000.00

~OL~7 * GROup Li~'~ ~NsUR~¢~ $~AOILIZATtO~ ~¢SB~S'¢ OECEMBER 31 , 19~0

~SL~ - @OLDEN B~tT }&~RUFACTURI~ COMPANy DEC£MBER 31, I~9 TH~ ~T ~L~CE ~T D~C~S~ 31, I~9 tS C~pO~ OF ~ eOLLOW,~: TMC AM~CA~ VOBACCO CO~PAN~ INVO~$ ~ CRediTS L~ss: ~ ........ I 305

55L28 . ~/;OL~N PELT M~FACTURINg C~'y DECE~ 31, I959 OAT~ D~CCM~ 31 D~C~M~ 31 DEBtT ~ALAN~ D~BtR 3f, 1~9 Vouc~ R~ sTz~ 21 01G.58 PA~ 2

5BLlO . I~ENTIV[ CC~P[~ATt0N pAyABL{ DEC~B[R 31, 1959 P[~ PeR p~n CO~TIN~Ly CE~ ~OUN~ C~.T AMOUNT CCN~ ~T P~y~L~ ~RANO TOTAt PRCS,O~:.T IO 87.900.85 10 87,900.85 20 175.801.70 163 .T~3.90 339,575.60 S~.,~ V,C¢ P~S. ~ 70.~20.68 ~ 70. 320~68 16 I;IO.6EI1.36 171,O19.11 271.660.1~7 30~

A S~M~IA~y ANALymI~ OF T~A~ACTIO~S ~'Oa ~ YEA~ 19~ FOL~OW~'~

5~11 . FEOERAL INCO~4E TAX OFFSET TO OEF~RRED INCEMTIW C~P~ATIO~ PkyABL~ O~ISER 31, 1959 INCE~fV¢ C~E~SATION AVA~B~ rO~ ALLOT~MT t~,A~M~,T G~U~ ~ 281 ~.7~__ 601 ,~.~ E~TINAT~D TAX ~ATE 5o#

~CEM~R 31, 1959 TH~ C~E~T ~LA~C~ Or ~lS A~CO~NT Ar~R AuGuSt 1, ~e)l, ~NTS TH~ AM~O~T O~ ~e~ p~ C~NT ~e~ THEm~ ~ ~0 T~CTt~N~ ~N ~IS ~e~C~T ~J~IN~ T~ ~AR 19~9.

~ PEP. CENT B~N~ ~ICH HAT~CD - A~U$T I, I~I ~C~R 3~, 19~9 • O

DCC~H~R 31 * 1~9 (CO~TENUCOI

6~1.60 - TI~'NTy y£AFt ~ t~B~tJRE$ ~URING APRIL 1~, q9~2 DECOdeR 31, 1959 PAC~ 2 CALkeD F~R N~T DePO~T~p Cm~o~ t~A~.~e~ D~e~M~ ~, 19)9 3,o55,c¢m.o¢ 89T,ooo.oo hg,0cO,O0 60. OaR .0¢0.00 39,967,~o0.¢o

~i.6~ - I~[NTY yEAR ~ ~NTL~I[$ MATURIN[. APRIL T~, 1962 - I~EAC~UIRCD ~CI:~R 31, 1959 A ~u~RY ANALYSIS OF T~AN~T,O~S ~OR THE Y~R 1959 FOLL~W~; ~AL~NCE J~Y I, 195~ PAR V^LUE JAnUaRY 9~,OCO.C<J AP~I • ~I~ .~00 .CO ~I~ t 26.00G.OO JULY ~CO,COO.OO AUGUST 194,0~ .O0 444,OCO.OO

~Ok6~ - T~ENT¥ YEAR ~ ~BENTU~'$ ~TURING A~LL 15, I~ - EA~OI~D ~MSCR 31, 1959 pA~E 2 30~,000.O0 2~*000.O0 LES~ ~R VALUe O~ ~EeC~TORE~ OELIV~RCD TO TX~ S~N~ING ~UNO TRUSTEE A~IL I~ 911,000.00 0~IT m~L~N¢~ ~¢~¢R 31, T95~

TWENTY~FI~ Y~AF: ~ ~BENT~'~E$ M~.TURI~ OCP0~R I~, I~9 ~CEMB[R 31, 1959 ICONTINUED) • "] 1.~

60~0 - T~TY-FIW YI.AR ~ ~ENTUR[$ ,'4ATURI~IG OC~Ek~: 1~, I~69 ~I~E~:~ 31, 1959 ORI~,NA~ IS~la~ CALICO OR R~TI~O T~mmu~ SL~:mG FU~O PRIOR T~ JA~U~ I, 1959 CALLEO F~m R~EHPTION SUT ~,:pl ,~ ,00 B~L^~CC JAnUArY I, 19~ JUL~ 15, 1959 y67 ,COO .CO ~,m2,000.00 81 ~, ,0OO ,~0 1,g~9.90 CR~O~T ~LANC~ DI. CC~I~E~ 31, 19~9 I OO ,OOO ,OOO ,~ 51 ,~99,000,00

(3OL~ - 1~.,'[,'ql~/-FIVE YEAR ~g BI'BENT~ES ~Tb~ING O~T~ l~p 19fi~, R[AC~dlRED D[CEHBER ~1 , I~5~ A ~UNMA~ A~ALYSlS Of T~AN~AC~rONS FO~ THt Y~A~ I~'~9 rOLLOWS~ BALAaC~ JAnUARy ], 19~9 352,000.00 PA~ VALUe Oe ~£m~TUR~S pUmCMaS~O BY TH~ COMPmSY ~O~T~ FAR VALUt

~OL75 - ~ENTy~'IV£ YEAR ~{ DEI~ENTL~ES M~TUR[N~L~ OCTOBER 1~, 1~9, RE'COILED C~CEMBER 31, ~999 ~[s~ pAR VA~U[ O¢ D~e~TUR~ ~.fV~R~D TO TH~ ~I~K~N¢~ rU~ :~US'r¢C ~ETIR~T DAT[ ~ ~'F~ I L 15 JUL~ ]~ O~lT ~ALA~C¢ D~C~£R 31, ~'3~ PA~ VA~ TdT,OOO.OO ~,01~,0¢0,00 8~ 000~0 P~ 2

6~ ~ENTY ~AR ~ ~TIEe,~NTI~ES ~IATURI~, JANIL~Ry I , 19~8 f~.CE~.'~R 31, 1959 A SUMM~Y AN~YS'S OF T~ B~.A~CE ~ THIS ~CCOU~T FOLL~W~ ~ETIR~O TH$1OUGH ~E I~N~ING ~'UND O~ ~JULY I, I~ ~5 .CO0,00O .CO

~OL~¢~ o ~NTY-FIVE YI~AJ~ ~ If~ ~B~NT~E$ MATURING FEBRUARY I~ I~7 ~'~LI~BER ~1, 1959 {C~TINUEO)

6OLEO . ~NT~'-FIV~ yT~, ~ 1/~ QKBENTDI~ES MAIIJRING FEBF~LA~" I * I~T C[C~R 31, 1959 R~pTdON m~ F~O~ ~N~NG FU~O 1T0 ,000 ,C~ 1,55~ ,ooo .co ~79,ooo .oo 2 .o~o ~oo p~e~ 2 ~,o, ooo ,ooo .oo @ .~48 .ooo.co ~o ,7~2 ,ooo .co 1 ,qo9 ,oG0 ,oo

~c~ 3t, 1959 A SUM~RY A~A~q~ Or ~a~CT~ON ~n ~ YEAR 19~ r~LLO~: J~ ~¥ 117 ,~0.00 i~95 ,o00.00 113,000.00 66,~.00 699 .ooo .co

6OLS+) - T~[N~ry.rbViE "EAR ~ I/l~ OEBENTORE~ :MATURING F[BRUARY I , I~}77 R'~AC(~UIR£D {~[C, EMB[R 31, 1959 pAG~ 2 LEss mA~ vA~u~ OF ~EB~NTUm[S OEL~V~O TO ?H£ F{B~UA~" I. 1959 AUguST I, 1959 b{SET B~LANC{ {){C{~BE~ ~1, 19~ I~0,000.00 1 ,~ ,000.00

65LI0 - OIVtD~ SCRt~' CL'RTIFICAT~ C~TJB~[ iNTO CO~MQI~ S~K DEC~ 31, 19}9 ~-~o~ ~ ~TO¢~), O~'~tNa ¢:~O~ ~m~ ~O~ T~ ~C~T NO. ~L~ - ~-m'aTIFtCAT~ NO, 16~6~ 23,o~ CEm~t'tcAr~ NO. 16~66 2,25 CZ'~TIFICAT~ NO. 16~68 1 .~

~L30 * CAPITAL STI2C~ - CC~IC~ - AUTH~IZ~D DEC~ER 31 , 1959 TH~ ~OLL~IN~ T~U~ATIO~ ~¢~ ~O~T~ O~T~I~S ~N ~H~ ~U~HORIZ~O~ UNI~U~O A~O I~UEO COM~O~ STOCK A~ DEC~B~ 31, 1959: ~¢¢OU~T N~. II~OL~ - CAPI~L ~T~C~ ~O~M~N ÷ ~NI~SUEOI' ~HAR~ pA~ V~LU~ t0 ,OO0,~00 2~0 jOC~ ,000,00 SH~R~ P~R V~LU~ TOTAL 786 50. 39,30B.00 ~,510~(~ Z5. 162,7~9,350,00 IN TeRM~ Or #2~. PAR vALU~ NU~eR OV t76 ~5- ~,~.0~

~L30 - CAPITAL $TOC~ CQ~MON . AUTHORIZED 9OL~ - CAPITAL ~K C~4ON - UNISSUE{) DECE~E~ 3~, 1959 PA~ 2 NUMBER OF IO0.OO IN T~MS or ~2~. PA~ wLU~ NUMBER O~ 5HAR~ P~ VAkU~ TOTA~ IS~UE~ AN~ OUTSTAN~)N~ AT D¢C~BEm ~I) I~ ~ $1o0, 4,1~oo.oo 78~4 50, 39,2oo.oo 6,Sto,H8 ~5- ~62.769 ,~5o .oo ~,565 25. 39.~oo.oo 25. 6,51e,Sz2 16~,813.o5o.oo ,22~

~OL60 = C~f~AL ST~3CK o pREFERR~ - A~GCqZ~ 9OL~ . CAPITAL STO~K ~ PREFEREO - UNISStlED DECE~E~ 31, 1959

9~LIO ~ T~A$t#Ry StuCK ~CE~ER 31, 1959 T~E ~¢~IT e~:E or ~IS ACCOUNT REPR~SENT~ TH~ ~ET VALUE OF ~S COM~NyIS CAPITAL STOC~ RCA¢~I~ A ~R~ ~L~S ~O~ ~ YE~ 1959 ~OLL~S: ACOU~m{O JA.U~.RY 1959 COMMON ~25.~ m~. 1,69~ $177,~3~.00 $~I.13 $178.09~.13 JANUA~ 19~9 - Issu~o ~ £~CHA~4~ fOR HI#~t~RITY ~LOEN ~LT ~9.NUFAC~'~R tN~ B~tUtNCE AT I~FC~,~B~m ~I ~ I~5~ -0"

97L10 - RETAI~D EA~INC~ D~'~HgER 31, 1959 A su~Rv ~N~LV~)S OF T~CT~O~S FO~ ~H~ VEA~ ~9~ FOLLOWS: N~T ~ARNt~ ~CR ~HE ~A~ 19F9 B$~o~¢ ntwD~ ~8~.978,11%83 L~ss~ DIVlDE~D~ orc~Rro IN 1959 PA)D OR ~AYA~L~ on couua. *rock ~ Cm~OtT ~A~AnCE D~CC~Be~ 31, 1959 39~9

97L13 - DIVI~N~ PAID ON CO~.~3N ~'T(~r~K I)ECENEI~R ~1, 195~ A~ A~ALyS,S OF TRANSACtiONS fOR T~ yEAR 1~'~9 FOLLOWS: OR E~CH ~I~T¢ $TOCK~OLOER~ DIVI~E~O PAR VALUE 25.00 P~R APa,L 28 MAy 8 Just I 215 162,813,050.~ 1.0~ 6,51~,522,o0 JULY ~8 AIIGUOT 10 5~W~MS~ I 216 16~,813,050.00 I,~ 6,512,522.00 ocTom~ ~7 NaV~UB~ 10 I~¢eMneR 1 ~17 16~,813,050,00 1.00 I~rB~ a~ANC~ TR~r~R~[~ TO ACCO~ NO. ~9~L10 - R~TA~ EAR~I~CS~ • T D{C{MB~R 31, 1959 ~A~L~ or CO~ON ~TOCK 0UTST~N~I~G ~TOCKHO~D[R~ Or R~COR~ PAR vA~uc i75? rt~RUARY 10 MAy~ AUGUST I0 ~5.00 ~G2,?Gg,~50.O0 lfi~,TGg,;#50.00 1G~,T69,~50.00 162.?Gg. h50.0¢ 5O.00 39,~00.00 39,200.0O ]9.200.00 39.~OO.00 I~2.81~. 090.00 16~.81~. 0~O~OO 16~!81~,O50.0¢ 162,81 ~ f O50,C~

97L~8 - DIVI~N~ P~IO O~ PREFERRED STOCK ~CE,~ 31, 1~9 THrs ACCOUNT mECOR~: I ~ DC~IT~ ~O~ ¢R~DIT~ TO ACCOU~ NO. "30LI0 - f~ STOC~ ~IVI~S ~AmU~~ A~ ~*~yStS OF TR~'S~CTIONS rm~ THE yEA~ 1959 ~'OL~.~S: I~V¢ $VOCKHOLOE~S D~VI~NO P~ V~LU~ DI~ IO~NO AMOU~ ~.I~V 26 J~.£ I0 JUL,, I ~I9 52,~8~,I00.00 1.~0 ~91,7~G.50 #,U,~UmT 2~ SEPTEmbeR 10 O¢voe~ I 220 ~2,78~100.00 I.~0 1"91,~b6,50 NOVENm~m 24 ~:~B~ I0 JA~U,~RV 2, 1960 221 52,T83,100.00 1.50 ~Emly BA~.A~C£ TRANSF~R~D TO ACCOUNT NO* mg~LIO . R~T,*INE~ ~RN~N~~"

~71~0 - AMOUNT AVAILABLK FO~ OI¥11:IENO~ UN~I'R SECTION L.O~ OF INi~£NTUF~E I~TED JANUAR,t I, 191~8, CfJVERI~G T~NTy yEAR 3~g DEBE~'rUK'[S I~E J~K~JARY I1 19~,fl ~C~'M~R 31, 1959 THIS ACeOu~ ~ECORO~: 1 - ER~t~IT~ FOR= I~,000,0~.00 58o,67~,5~T.7~

97h80 ° A,~IJNT AVAIlaBLE FOR I)[VIDCN~ tJNDER $EC1"10~1 ~.O~ OF INQENTURE gATED dANUAfly 1. 19~8. COVERING T.~.N~Y YEAR 3% ~BI.~URE$ OUE JANUARy l. 1968 II:CEMI~R 31, 1~9 PA~ 2 ~REFERRED STOC~ ~ ~-~O~ m ~T~t~ DCC~R 31, 19118 3.161,982.O0 14.375,430.713 5,793.g61.50 23.331.O7b.25 D~'CEMB~ 3I, 191~9 3.161,98e.O0 21.513..z00.00 21~.675.~2oO0 I~.c~ 31. 1950 3,161,982.~ 2%513,7oo.oo 21~,675,682.oO ~c~,~ 31. 1951 3.161.~2.00 21.513.700~00 24*675.682.00 OEcc~c. 3I, ~952 3,161,~.C0 23,933,991.~5 ~7,0~5.973.25 ~¢~'~R 31, 1953 3,161.9~.00 ~5.816.hho.oo ~8,978.h2~.C~ ~C~Mle~, 31. 19')~ 3,166.986.00 ~8,651~,IT3.35 31,821,159.35 ~'C~m~R 31, 1955 3,166.986.OO ~8.~55.O96.~"~ 31.822.08~.8° D~¢~m~P 31. 1956 3,166,986,00 3~.5g~.610.00 3%7~9,59~.C~ I~C~)m~R 31, 195"# 3,166,986,C~0 3~,562,610.00 35,T29,596-O° tl~e~)~ 31, 1958 3.196.98g.oo 3~.56~.glo.c~ 35,?~9.F96.OO ~rct'Mt~R 31, 1959 ~166,~6.C~ ~.~6~,610,00 ~,Td9.~96,00 TOTAL 37,973.808.OO 316.~26,67~.15 5,~93,661-50

~7t81 - I~FF~ TO AI~IINT AVAIIABLE F~ DIVII~T~ II~I~R SECTIO~ ~,~ ~ IN~NTII~E G,~TED dANUARy I~ I~8, COVERING TI~ENTy yEAR 3~ ~EBE~TURE$ D~JE ~,M~ I, 19g,8 ~CEMBER 31, 1959 YEAR ~% ~£~U~E~ OU~ d,~NU~y l, I~8."

102 - ~L~ ~ LEAF e,o53.85 ~m.77

202 - COST 0F SALES - LEA~- ~959 TH~ D~BtT ~ALANC~ Or ~S ACCOU~ ~COR~ TH~ CO~T Or U~Ar TOBACCO S~L~ TO CUSTeMER~ T~J$ ACCOUNt" R~COR~S~ ~SlT BALANCE ~RAN~¢E~E~ T~ ACCOUNT N~ ,558.8~

230 . ~ALVClGE AND EXVEN~E - RETI~RN£1) COOD5 . CI~,~RETTE~ SMOKING, ~C* 1959

2~0 ° ~.~LVAGE AND EX~E ~ ~TURN~ GOCO~ = CI~F~ETTES. Y=~OKING. EtC. 1959 A s~Y ANALYSlS Or TRANSACTIONS ~O~ TU~ ~A~ I~9 FOL~OU~: TOTAL CR~IT~ 96.~6 p~G~ 2

2~0 - SALVAGE AND EXPENSE . RETURNED GOCO5 ~ CI~RETTES, $NOKING~ ETC. 1959 PA~E ~ .T~,7~ 111.~5

2~O - SAL~GE ANE* EXpE~ISE . REI~R~EC* ~DS - CtC~.P~TTES. SMOI(ING. ETC. 1959 PA~ 4 563.66 178.19 159.T6 ~61.Oh 66.T2 81.1~1.1o 1,1~o.92 7o0.73 87,ofl

2~1 - $AL~GE ANO EXPENSE . RCTURNEO~ - C~GARS 1959

2~1 o SALXtAGE AND E~NSE - RCTia~NED GflO~ - CIGA~ 959 r i~ ~ ~tt~ ~ooD~.I~ ~ T~t~S~E~ O~ ~II~T ~L~CE ¢,T ~n OV "¢~,~ TO ACC~T NO* ~'~ ~ It*CO~t.~ ~TU~N ~'¢~ THE r~oE o~ ~,~ ,~L~t.~ A~o 514.786.16 52.748,7~ lz~,131.86

2~I - ~#*LV#~GE AN~ EXPE~E - RETURr,~ GOO~ - ClC*A~ 1959 120.70 63~.57 6,3~,5h

~ ~ SALV~E AND Ey~'N~" - GOO~cR ~CDp ~E, ST~OY~* ~TT., - CIGARETTLSp ~KING, ~TC~ ~959

2~ - SALVAGE A~D ~NSE - ~ R~[D, ~T~Y~O, [TC* - t959 p~GE 2

2~ - SALVA#,E AND E,~I:EN~ - GO(~ KtE~RKED, If=STaYED. ETC* EIC.&ETTES, =~.I~KINIZ, ETC~ 1959 4,o86.~ i i~6.93 15,971 .~8 35,766.13 71,813.1T

2~3 - SAL~C~ A~lO eXpENSE - GOODS R£WORI~Dp DESTROYEO, ~C. - tieR5 1959 THI~ ACCOUNT r~¢O~ T~C N~T ~XPEN~ iN¢~rr~o ~N REHA~DLING OR ~ALVA~IN~ ~I~A~ (CO~TINUEO}

2~ * SALVAGE AND EXPENSE . GO~ R~OR~D, OESTROYEO, ETC~ - CtC~RS 1959 pAG~ 2 A S~ARV ANALV~I~ OF ~RA~T~O~S FO~ ~M~ VEA~ ~9 FOLLOW~: 3,354,3a 7T,~7 ;~4S

23~ - C0~IS$I~4 ON LEAF PURCS~AS~ APPLICABLE TO ~NUFACTURED STO~K 5OLD - 1959 TH~ ~IT B~LAN¢~ O~ THIS ACCOUM~ ~pn~V~ TH~ A~OUNT OF ~O~M~SlO~ ¢~G~ By TH~ H~TH~WAy.ST~[ D~IT ~L~ TR~F~m TO AC¢~U~ ~ ~ - I~¢O~~

2~ ~ INC(~IZ #*II[~ EXPENSE ~ MACHI~/ERY AND ~QUIP;4ZNT RE~TED TO ~YrHER THAN AFF~LIATE[~ COMPANIES 1959 g ~MARy AN~YSI~ OF T~C~*ONS FOR ¢~ y¢~ 19~9 ~O~LO~S: ECUSTA UNI~E~ $~AT~ p~p~ FILTER DIVISION CORPOR~IOH TOT~L L~SS~ EX~ C~TING A~O ?RA~PORT~I]O~ ~T D~C~M~ 31, 1959

1959 TOTA~ ~IVlCnA lO3,333.7~ (CO~T,NU~DI

2~O . UNAB~ORltD E~0W.N'~'$ = CIGARKTTCS, SMOKING, ETC. ~559 pA~E 2 ~7,287.36 17,270,06

2~I . UNASS(g~SED ~p~ES - C IGARS 1959 THIS ACCOUNT RECO~S [XP~NS~S INCU~R~ AT ClO~ ~¢H~S AND ~IC~R ~IVI~IO~ U~O~E ~HE ~TAR¢ Or ~ ¢~T FO~ V~AN~r~ OF ~ D~I~ ~AL~¢E TO I~¢OONV NO, "~ _ IN~O~~ AT e~O Or yE~. T~ D~I~ ~L~C~ T~Sr~O TO ACCOUNT NO* "9~ . I~CO~H AT OE~E~B~R 31. 1959 16,79~.ol

2~ . UND~RIBtH~ E×P~N~E ~ CIGARETTES. ~IN~ ~TC~ ~959 T~ DALAHCE OF ~'HIS ACCOUNT R~p~s~T~ AMOUt*TS At'PLtCABLE yO OIHE~ TtlAN ¢IGARS~ W+ttCH ~ERE t*o~" ~'~OI,~R A ~U~*~.~Ry A~At.~SI~ O~ ~'R.~NS~¢~IONS ~'OR T~ Y~AR 1959 ~OLLOa~:

~2 ° UNDI$]rRIBUTED EXPENSE - GIGARETTES. SHOK~NG. ETC. 1959 pAG~ 2 3.69~.6m 28.6~i,22 4,B73.77 {CONTIMUE~} 355

2~2 - UK~ISTRIBOTED EXPE~£ ~ C[£~RETI~5, S,'4OKIK~ £TC, 39o .~ ,868,~5 i ,7co,4~ 7~o.39 PA~ 3 3,752.65 3,6o7.~1 1.6o7 .88 $l&.o3 8~.88 ~Z .o~ ~6.8T (CONT IN,too)

2~2 . UNDISTRIBtli'ED EXPENSE - CI~RETTES, 51¢gKINGI ETC* 1959 GENERAL rAC¢O~Y ~UPPLI~ INVenTORY A~JU~NT~ AT= DU~MA~ BRANCH LOUlSVtL~ BRANCH R~IDSVlLL~ BRANCH P~RIO~ ~P~I¢^~L~ TO: OV~¢H~ CL~IM~ ~N ~HImH~NT~ O~ ¢OCO~ ~NO ¢~OCOL~E TO: ~U~H~M ~R~CH T~ ~MOUNTS ~I~¢~ tom O~F¢CTIV~ M~LF ~ HALF ~UCH~ ~ppLIC~LE E~Z M~NU~CTURIN~ coHm~y DUrHaM ~NC~ i)~..A~ . AU~IT mE~io,~ 1/1t59 TO 17/711~7 BLANK[T I~OIL~I~ .~M~ TUItBIN[ IN~nIIAN¢C p~UM m~l'OSIT I'R~vlmUS~*t ~tRil"T~l Ot'F i~,+ AM~RI~a~ SUPPLIERS ~OM~INIII~I HUT~IL PLOIYt'I = Fitl~ - IIoLicY ~llOO 111/~6 "~O 1/1/61 (CONTI~U~) >±7.] ] 1,000.(¢t T 2 pAGE ~ ! . : ;t36.{; .Z;.~Z

2~2 - I~NDISTRIBUTED EXPENSE ~ CI~RETTE$~ S~IO~, DC. ~959 PA~E T Z+.

2~ - UNDI~TF~IBUTEO EXPENSE CIG~S A ~ULA~,~R~" ,~e~,L~S:~ Or TR*~N~C~IC~ ~'0~ THE Y~.'~ 19'~~ ~'OLLO~

1959 38,o8 6,87~,78 2~8.3~ I,~1,39 ~9z.81 67,~69.~6 71,3~z.~3 ~,759.~ ~6,h53.78 15,361.28 3,ooI.00 (coat ~,u~r~ )

24~ - Ub'Dt~TRIE~TED g2<pEt~E ~ CIGAR5 1959 66.9~ 58.~ PA~ 3 62~.3~ 216.86 12~.h2 86.68 66.~5 62.2h 7.50 ~CO~TkNU~D)

2~3 v UNOI$'rR~TED E)CpENS~ . ~IGAR$ ~959 2,~ ICONT~U~D)

6c,6L

2~ - L£AF ADJ~TMENYS ~ CIGARE~ES, ,~,~IOKIN(., ~C. 1959 THI~ ACCDUNT ~CORD~ ADJUSTMENTS R~LATIN~ IO LEAP" T~BA~C~ W~ICH WC~£ N~ AI~OR~ IN B~'ICH COSTS, T~m~ W~R~ NO T~N~A~IONS IN THIS ~¢~O~NT ~U~IN~ ~ Y~A~,

2~ . LEAF A~STMENTS . CIOAR5 19~p TH~R~ W~C NO TR~C~IO~S ~ TNI~ ~C¢OUNT ~URI~ ~H~ y~* :3:~5

1959 T~ r'~BIT ~LANCE OF ,>~;~ ACCOUNT ~p~S~NT5 ~ N~T ~XP~NS~ IN CO~N~CT~O,~ WI~ Ae'~N~NM~NT O~" ~E (C~H~bNU~m)

2~ ~ E~NSIr$ iN ~NNECTIO~ ~TH ~4~&~ ABANDONED - 60~E- 2~ 1~9 1959 p^~r 2 A SU~RY A~ALY84~ Or T~N~CT~O~ fOR TH~ YEAR 1959 FO~L~S; ~u;~CTUR~O COS~ L~r 1,090.22 CAsI~ 28.78 R~CNU~ 8TA~e~ 1.93§.26 LABOR, oW~NEA~, tTC. ~ ~ 6,6~3.15 9,~49.66 957.8~ 6z.e3 ~50,64 155,18 6,787 .~

2~ - £~ENSE$ IN CONNKCT~ON WITH BI~A~ ABANgONED - OUNE 2, 19~9 1959 PA~E 3 GENiaL ~X~E~S~S NOT ALLOCATEO 54.31 1,3o8.16 7,373.79 2,2h5.o6 315.63 645.5o 119,8~ I,Z71.34 1 ~6.78 ~84.fiz 39.2~ 386.~o ~56.06 ~8A9 73-7? 153.61 1.031 .~ 2,5~.3,56 513.7~ 39Ao 182.91 379.33 ~1.20 31o,73 5~ .88 236.05 35.63

5~ . GENERAL ~D ~MINISTRATIVE EXp~NS~ 1959

5~,0 . I~NERAI_ AI~[) J~JMINIS~ATIVE EXI~ENSE 1959 PAG~ ~

~O0 - G~ER~L #,ND kI~iNIS~ATIVC E.~pcNsE 1959 PA~ 3

~O0 - GEniAL AqD ~DM~ISTRATIV[ EXpos[ 1959 (CONTIN~O) PAG~

- G~ ~O ~INISTRATI¥[ EXP[NS[ 1959 PA~ 5

~00 - G~N~AI. A!qD A[~41NISTRATIVC E~<PE~SE 1959 P~G~ 6 %STD,Tm9.95 9,35~-~3 Tg,~IT,93 98,396,7~ 58,8~,78 5.73~,66 ~35,716,99 ~46,T?~,?9 37,120,20 811.5~9,97 30,56~.89 I~.996.38 133,7~I.16 312,T39.gT ~o,5~5.5T Im,TIT.8~ 16,5oo.0o 3,~TT.88 ~59,~3,93 I~,io3,11 [COntINUeD1 gT4

5OO - GENF~AI. &ND Ai~MIN~STRATIYE EJ(pE~sE 1959 9,000.00 I,o8%o8 2,312.23 13,855.16 15.~Z6.87 92.95 a2,?T7.38 135.oo t89.oo 36,oo9.~8 a1,153,15 ,gy3.e~ 5,o~7,23 79,~o ~5,68 ~5,9o ~56.8~ 2~.oo 1,o33.~1 3,883.oll 2,709.99 9H.B5 ~9,.9o ~65.95 ~33.37 18,o25,o6 3.3ol.o9 ~,85o,36 6,398.36 19,176,~9 3T5

500 . GY~At ~D AOMINISTRATIVE ~pENS[ ~959 ~oucw AMOUntS D,STR~mUT~D ro T~ ¢OkkOwt~ ~¢¢OUNT~: 6,072.99 250.<)0 55O.OO 3,~7.3t 3O3-37 I.T6 z~3.~3 t62.3o 68.681.56 ~67.~6~.99 5,39~.30 ~6,t61,21 675,0~7.30 ~.~37,760.87 5.9~.87 ~6,637.37

51o _ INCL~TIVE COHP~NSATICN . AyAII~BI~ FC~ ALLO'iI~NT _ CURREt, q" y~AR THIS ~CCOU~T ~¢OR~$~ 1 ~ DEBIP~ FOR CR~O~TS ~O ~CC©U~IT NO. "~L10 ° letC~TIV~ C~pE~S^TtO~I p~BU~.~ kieWIT BALaNCe T~At~S~';:~R~ TO A~OUNT NO. ~)9 ° I~e~'r AT D~¢c~a~ ~1. 1959 HR, PAUL H. H~HN, PR£~IO~? 2(B){1 ] o~ ART[~.I.¢ Xl[ OF" ~V~*~BL~ F'OR At.t.OTM~NT IN PORTtO~ PAYA~L[ D¢~[R~tD IN CASH PORTION AS S~O~ AS CON~IN~.t~TLy P~ p~R PeR 10 ~7,~00,~5 tO BT,~00,P~5 20 175.B01.70 8 70,~O.6~ 8 ~0,]20.68 16 1~0.6~1,~6 or AR~ICL~ Xll o~ ~'~ By_t~ws AS IN ACC~R~ANC£ ~ITH lrNE ~EN~Nlr TO ARTIC~.~ X[I VeT¢~ By ~r~ BO~,I~ O~" E$1R~CTO~, ON J~t.¥ ~, 1~, lrH£

O0 '000' t~ 00"000'00~ ho" L~'00~'~9 ~ u oo'co~'¢oL'g ~ ~ 00"000'000"9 :NOII¥*N3~ 3ALIU3~N ] --O° OO+00O'09~'L 6C:6L '~ ~lnr NO ON¥ ~6L '~| ~V~¥~ qNV L ~¥m~ 6~L ~v3Aj~3~ o £~3~o~V ~1~ ~v~lvA¥

511 - INCEf~TI'~E COttp£NSATI~L~ . PI~IO~ YIEARI$ ,~DJJSI~NTS 1959 R~V~R~;~L r~" 3~8 IN~NTIV~ ~f~t~,~E'l~l~ APpLIC;~BL~ TO: I~C~J~~ AT O~C[I~R ]1 • 19~.

~12 ~ PAY RO4L TAX~ O~ I~['~TIV~ CO,t4°~I~'SATION pAIO TO R~'flR~. ~'/'C. ~p~'clUS$ 19B9

~20 . pROVISION FC4~ DO~TFUL ACCOUNT5 ~[IV~BkE - CUSTOMER5 1959 THI~ ~CCO~NT ~CORDS: 1 - D~BIT~ ro~ ¢REO~TS TO AccOUnT NO* rq~Al~ . RESERVE fOR ~OU~TrUL ~CCO'~X¢~ ~[¢~VABLE - CUSTC~RS~ FOR TH~ ~ONTH~ PROVlS~O~ ~O~ ~STIN~T~D ~O~S¢~ O.~ cUStOMeRS ~¢cOU~T~ 2 - C~E~T~ ~o~:

~21 - COLLECTION$~ ETC. OF ACCOUh'T5 R~CEIVABLC - Ct~3T~4ERS . WRITTEN OFF pRIOR TO JANL~RY 1, 19~7 1959 THE CR¢OIT eALA~¢~ OF THI~ .~C~OUNT RI:pR~S~NT~ ,'He ANOUNT or ¢OLLI:CTION~ £1C,, '~URIN~ T~ yEA~, C~EDIT n~LA~Cg ,'RA,~SFeaRE~ TO ~,CCOU.~V NO. "999 - i.¢o~" aT O~cz,4nza 31, q959

530 - L~COLLECTtBLE CLAIHS 1959

620 - STATE TA.gK~ NOT BA,~O ON INKS~ . C bGA~TTK$, $M0~¢NG. ETC. ~CEMSER 31 • 1959 A sUMMARy A~LYS,S O? "~RANS;,CVlONS $'O¢¢ 1~ ~'O~.LO~'~: ACCOUNT NO, KI~ ~ TAX PRE~ID TAX~~' TA×¢S PAyABLe" F~ANCH i~ 2,O67.9~ 1,033.96 C~L*r~iA ;a~C~,S~ 52,085.32 ~9,16~.I ~ COLORAO~ V~A~CHI~ 176,OO 8~.OO FLO~rOA ~NOAL FE~ 1OO.OO 100.OO G~O~I~ A~U~L F~ I.OO r~c.,sc 93,75 31I~5 ~E~TUCKV g~UAL F~$ ~.O0 L,¢~.s~ 11,617.o3 5,583.33 LOUlS~Aa~ F~A~CHI~C 5,h28.31 3,Ski.G9 MeCH~ A~L Reporter ~o FaA~CalS~ I~,5~3.75 8,959.83 INTANC;ICL~5 60C,00 TaX ON C~PiT~L 2,~36.10 10<),00 3,~o~ .88 ~o: ,248.~4 261 O0 200.C~ 1.00 125,C~ 2.00 h.O0 8,~70.00 I0,C~ 600,00 ~.736.~o

620 - $TA~[ TAXES NOT BASEO ON INCO~£ . CIGAETTES. ~ONdNG. ETC. ~CEMeER 3L 1959 PA~ 2 ~EW d~RS,Y NEW yO~K NORVH CAROUNA T~NESS~E UVA. D£~Irs ro~ C~!TS TO ACCOVNT NO. ACCOU~ NO. II3OhT~ - KI~ or TAX PRZPAID TAX~S~ TAX~ pAWB~" E~ AN~UA~ F~ I0.00 10.00 r.A,C,,SE 898.70 898.70 TAX O~ I~.ZaSE iN CAPlVAL 220.00 22O.00 I~ o. 1938 2o,~6~,67 17~,333.33 :93,o~o.oo B~s~o o~ 1959 07100.00 ~7,000,00 ~*~c.,~z 236,58L5~ ~36,58L9 ~u~w~wm.~w 29.58 29.58 ~NNU~L ~rrm~wv 3.00 3.00 FR~NCS,~ 3,6h~,29 8h8,53 ~,~90.62 L~CE~S~ 166.6~ ~3.53 2CO.O0 AN~UA~ F¢~ 10.00 10.OO EXC,~ 23,000.00 28,399.90 51,399.90 F~C.~s~ 2,500.00 5,5~6.05 8,0£6,o3 F~A~c~n~ 10~.65 197.1~ 502.y8 Bus,~es~ 33.8~.82 33,8~8,82 h:23.85 :3o,oo L i c~,,is~ I ,I~3.83 WeST VI~t,~N;A L~¢Z"S[ ANO F~ 130.00 THE AM[~ICA~ TOe~CCO Co~p~, ,m or D~l:HeCn 31, 1958: NOR-¢~ C~;~OL r NA F~A.CHIS~ I)7,377.90 C~IT B~L~%~CE ~:~N~FCm~O TO ACCDumr NO. '~99 - I~CO~" AW DZC~Ma~ 31, 1959 177,377,9o ~22 58 2~2,5~ ~N5

621 - ~AT[ T~E$ NOT ~D ON INC~E ~ CIgaRS A ~u~y ~SALy~IS Or T~A~CVlO~ ~OS 1959 ~O~Lo~S~ D~BITS rO~ C~O~TS TO A¢COUN? NO. ACCO~ST NO. "50L~8 - KI~D or TAX P~P~IO T~X¢~I' T~XES p~y~OL~~ B~L~NC~ P~NS~LVA~IA F~A~CHISE 150.00 150.00 I~OO~E" ~T DeC~H~* $1, 1959 ~ ~

630 - STATE T~S NOT BASED ON rNC~E ° T#¢4 C~)WTI~GENCrE5 RELATIVE TO PRI~ YEARS - CIGARETTES, ~I~IOK~NG~ ETC+ ~CEM~R ~1 , ~9~9 NET C~DITS e~m ACCOUNT NO. OL 6o~;67

- STATE TAXES NOT BASED ~q I~:O~E . TAX COhrf It~/~r,~lE3 RELATIV~ TO pRIO~ ¥EAP.~ = CIGAR5 O~CD4~R 31, ~959 TAX C~D~T~ TO K~NO O~ T~× ¥~ ACC~U~ NO. Pt~NS~LVA~mA F~A~¢H~S~ 1~58 ~mlT ~L~C~ TR~NS~E~ TO ACCO~ NO. ~99~ -

660 - OIVI~ AND I~TE~$T t~ FROM SUB,~IOIARIC$ 1959 - UNS~CUREO ~[H~N~ ~Or~S O~N LOAN ACeOV~ - Op~N LOA~ AC¢OUN~ Cm~I~ ~L~C£ T~r~mR~O ~O ACCOUNT ~. Kg~ . I~¢O~~ ~52,89323

6~1 - DIVID~NDSAND INTEREST INCOME FRO~I OTHER THAN 5I~SIDIARIE5 1959 A SI~:I~Ry ~Ly~l~ O~ T~A~CTIO~ FOR T~ y~R 1959 ~ FOLLOWS: GR~a~ER RIC~eND ~N~T~TAT~ TREaSURy D~¢.15,1965 4,O00.CO 1959 2 ~/4% c,r~ o~ N~ YO~ 5¢~. I, 1960 I ,OO0.OO 1959 ~ I/~ ~O~LK 5OUTH~R~ R~IL~AY CU~TO~ ENT~RPRIO~, I~C. R[PUR¢~A~ A~R~EME~T~ - U~ 5. T~sURY $~cU~IT~S ZO0,O0 585.00 11o.oo ~2.~o ~,6o9,38 ~,763.T7 9],31a,5o

662 . SU~Y UN~I~[N~ pA~BL~ ACO0~I"S 1999 A S~HARY ANALyS,~ ~,~ Xe~CTIO~S ~R ~¢ ~AR I~9 ~C't~oWS; 6- ~WN~8 FOR V~C~'ORY - UNCL~d~E~ 2OL~ -0LO OO~NOI~G CHECKS ~tE ~- ¢osv~4em,~ ~ru.os t943 - 191~ ~E~ ~,~LANC[ ,~N~r~mra~B To ACCOUNT NO. N~S~) ~ IN¢~¢4~'r ~.v B=C~HO~R 31, 1959 1,86~.18 ~59.11 ~66.18 ~.7o ,99~

665 - MI~;ELLA~EOU$ qk~OME . OTHER THAN CIGAR 19~9

66~ - M]$CELI~NEOL~ INC~ME . CI~RS 1959 l~c~~ ~ D~C~MB~ ~I, I~9

---

700 - INT[~X"ST O.4 ~0 Y~AR ~ DEI~I~TORES MATURING APRIL I~ 1962 1959 T,I$ AccOUnT R~COR~: 2 ~ Cr:¢I) IT~ ro.¢ ~rr~ o~ O~II~T ~ACanC~ a~ .-~ ~nD TO ACCIOU~- NO. "999 ° l~Ce.~.~ A sut..~^~v A.~.y~ O~ Ta~INSaCTIOn ~'On TH~ y~aR 1959 t'O~.t.~ 9~.0ZZ.95 dU~Y 90.0?3.96 AUGUST 89.595.81' ~7,736.75 87.oc925 D~c~,B~ 31 . 1959 1.091.359.5h Or"

701 - INTE~T 01~ 2~ yEAR ~ O~ENTL~RE$ P~TURING C~TOBD~ t~ 1~9 'r.~ ~OlT eAuLNC~ or T~IS ACCUU~ ~p~E$~T$ pnT~T ~XP~S¢ O~ ~l:~Tv.r]v¢ 'rEA~ ~ o~e~nlr~R~s A SI~IA~y A~AL~S~S or ~A~$ACTIO~S FOR T~¢ yEA~ 1~9 rOLLG~ 1~0,567.9~ 118,813.2~ 117.~1~.~ ~cEoU.T NO. "999 - I~CC~" AT

7c~ . iNTeREST ON 20 yEAR ~ D~BENTURES ~AT~ING JANUARY I~ 19~ 2 . C~:~DIT~ ~'OR T~r~Sr~R or ~BIT BAUNCE AT Y~A~ ~,O TO ACCOU~ NO. "999 . i~o~t."

MA~ING F~UARy I, I~ 1959 T.~ OEBIV ~LA~CE O~ ~11~ A~¢O~INT RCpR~S~I'S ~N~R~T CX~'~N~IC ON T~N~'y.r~v~ V~AR 3 I~ D~II~N~U¢I~ THIS ACCOUNT ~¢O~DS~ 2 - Cm~a,,~l ~-o~ ~RAN~F~m OF D~eI~T OaLANC~ AT Y~AR ~HI~ TO A~COU,~V NO. ~999 . I~ClI~n r ~en~nY 1 o7,586,~5 105 ,~8~ ,77 Io5,199.79 101~,865,23

710 . OIS~T 0~1 20 'tEAR ~ 0EIM:N'PORE'3 P~I)RING APRIL 15. 1962 1959 ~% SLm~AI~'~ A~;,L'CSlS O~" WmA~SACTIO,*s FO~ THZ "~m 1959 FC*LL¢'WSl P*m VAUO~ OF AMO~TIZ;~T~O~ ~'~O'aWlZ~D DisCOUnT O~ MO,~ pRCWO~'S Mo~ P~ MON~W O'r 8ONOS DISCOU~ D~COUtlT d,~u,~v 39,5~3,000.00 9,881,90 975 ,e~O.OO 2,737,10 5,619.Ocj F~ORUA~Y 38,~8.000. C~ 2,810.80 771~ ,OOO.OO 2,116,~40 ~ ,9"27.2G ~t I. 37.117 ,ooo Oo 2.70~.~5 h1~.o~.oo 1.066.158 3 .~72.93 ~v 36,7o5 ,o~.o0 ~,6762+o I~6,cc~.oo 316.97 ~.993.37 oxssz 36 ,579.ooo.00 ~ ,667.~ 3~o.ooo .co 83°.5~ 3 ,~97.74 d~w 36 ,~39,C~0.00 ~ ,6~2.h3 3~I ,oeo.o0 713.31 3,355.7h A~ou,~ 35,938,0OO.00 ~ ,6ZO.h8 19~ ,OC.3.0~ 1~45.59 3.O66.07 $F~WC~aF~ 35.7~4,000.00 a.606.33 519,CC0,00 1 ~154,~ 3,760,57 oc TOe~ 39 .~5 ,C~O.OO ~ .568.49 3h9.0OO.OO 75°.72 3,319.21 N o'~ r..suc a 3~ ,876 ,o~.c~ z ,Sh3.oh ~8,ooo.oo ~3z.~5 2,975 .~9 C~c~a~ 3~,668.ooo.co ~,5~7,8fi 551 ,ooo.co ~ ,1c~.87 o~olT ~¢a.NCE ~'R~,*~S~'CRm~ XO ACCOUNT NO, "999. ,'~99

711 . DI~OUNT ON 25 YEAR ~ DESEI~TIL~S MATURING OCTOBER 15, 1969 1959 A sUN~A~ ~ALYSlS OF T~AMSACT,ONS FO~ ~ y~AR I~9 fOLiOS; PAR V~LU¢ Or AHORTIZATIO~ ~N~HO~T~Z~ DISCOUNT O~ O~TU~S ~ ,ceo8333333 Bo~S Pu~C~s~o o~ F~SRU^Ry 50,53G ,C~. ~ 1 ,O52,70 21+ 9,O~0, ~ 6~I ,~I 1,714.11 ~*~e, 5o,~81 ,~,~ 1,0~7.5~ 26~ ,o00.00 69o,~8 1.738.0o ~L 5o.oi 9,oo0.00 I ,o~.o6 1,29q .o00.00 3.391:1 tl .~33.1"/ MAy ~8.7Z2.OCO.O0 I ,el 5 .¢5 159,O00.OO ~12.~I 1 .~7.~G ava~ ~8,563,ooo.oo 1 ,o11-73 6~! .000.oo 1.656.96 2,668.69 JULY ~7,919 *O~O.~J C29~.31 81~ ,CO0.~ ~ ,0~7,39 3,07~ *TO ^U~UST ~7.10'5,0:~0.0~ 981.36 - - 981,36 ~¢~T~¢~ ~7 .I C'~,OOO.OG 981.35 72.000,00 180.~5 1,16~.10 o¢~o~c~ 47,033,000.0o 979.85 ~15 ,°°0.°° 535 ,~'f 1,515.1e Nov~ ~6,818,OO~.00 975.37 ~3~ ,coo.oo 57~ .T5 1 ,~8.12 InC~" A~ o¢c~ 31 , 1959 ~fW)

712 - DISC~ C4~ 25 YE~ ~ I~1% ~NT~S ~TURI~ ~I~U~¥ I, I~77 ~959 T~ DmS~T eALA~CE OP TH~S ^ccouN~ .Cp~S~NT~ TH~ CURRENT yrAR'S A~TIZ*TIO~ 0¢ D,SCOUNW ON T~TNTY~rlV¢ A su~f~v ANal.V~IS ~ V~A~ACrlONS ¢Oe T~ V[~. 19~9 ¢OLL~: ~ V~LU~ O¢ AMORTtZ*TION U~RXJZ~O ~)ISCOU~V E~ ~r 8o~ P~R V~Lu~ TOTAL J~,e~R~ ~o,o53,coo.ce ~,837.c9 i]l,o~.oo 1,698.3o ~,535.39 M~.c. 39lg33,oo0,oO ~.8o7.33 115.co~.~ 1,7~3.~1 ~,55o.5~ ~e~,c 39.518,°O°.c~ ~.799.19 ~5,oce.co 7,468.31 Io*~67.50 ~*v 39,C~3.0C~.0o ~,76~.1~ 111t*CO0.O0 1,711.9o ~,~T6.0h J~,~ 38.909.0o0.00 ~.736 .c5 66.cc~.oo 9~6.~3 3.7~.~8 Ocwoe~. 38,755, co0.o0 2.7~15.1~ 10~,C~.00 I ,~68.89 ~I,31~,~Y3 Nov~, 38,~48,c°~-°° ~.737.57 2o.c~.oo ~90.~ ~.737.57 OEBI~ B~L~NCE TR~NSFER~E~ ~0 ACCOUNT NO. "9~9 ° I~COME" ~W D£C~e£~ 3?, 195~

T~O - PR£I4~UH (JR DISC0~]NT 0~ FO yEAR ~ DEE~NTLIRES bC.kTIIRING APRIL 15. I~2 ~[D 08 CALLED V~R R~DENFTION 1955 T~¢ ~,LXMC~ O~ THIS ACt~T ~PR~TS TN~ DlrW~tNCE BCT~N THE pA~ VALU~ A~ ACTUAL CO~T Or TWenTY P~ VALUE OlSCOU~" pAR V~U~ HOPJTH F~a~u~v 771~ .o00.00 5.630.oo APRIL ~l ~. O00.00 1 1.533.75 H~¢ I ~6.CO0.CO ~.156.2'3 du~c 3~0. o00.00 13,~91 •25 J~L" 301. 000.00 9.~63.75 Aucus~ 19h.000-~ 7.361 .~5 scp~Hsz~ 515.00o.0o 1 ~.598.75 Ocroe~ 345.000.00 1 ~,2~+~.o0 Now~, ~o8.0oo.oo 8.577.50 C~olT ~ALANC~ T~A~R~O ~O ACCOUNT NO. "~;'9~ - I~¢o~'r kT 0ECEMe~R 31, 1959

- pRE~Ill~ {R DISCOJ~T O~ 25-~'AR ~ [JE~NTIRES ~4~TI?RING ~lrDBER 15, 1~9, P~#~ED O~ CALLED F~ RE~MPTIO~ 1939 TH~ eALANCE ~ T~IS ACCOUNT ~m.E~E~T~ T~ DIVF~.ENC¢ ~TW[EM THE pA~ VAtUC ~O A¢TU.~L CO~T Or TW~WTy-- A ~UM~7 A~ALTSlS Or Tm*~SACTI~ tOM TME YCA~ 1~9 ~OtL~W~: JANUARY 817,000,00 37.~] ,2~ ~,v 1~9,0~.00 Io,383.75 Ju.c 6~,oog,oo ?~,~T.50 av~.v 81 ~. ,oo~.oo 78,o~0,oo N,OVCMe~ ~ 237,000.00 23, ~75 ,CO C~COIT mmL*UC~ ,-.ANS~'CmR~O TO Aee~T N~ "999 - I~¢O~" AT DECEXm~m 31 , 1959 ~6,930,C0

722 . PR~tlUF~ OR O[S£C~NT Ct~ 2~ YEAR 3 1/1~ [)EBE~T~ t~AIt~ING F'[BRUAI~y 1, ~97r, I~JRCH~,SED OR CALLED FOR R[OEqPT~Ctq

722 . ~RI~IIIM 13~ DISCOUNT I~1 25 YEAR ~ 1/4% OFI~NTOIreES MATt~ING ~RtlAR¥ I, 1~7, pIJI~HAS~O OR CAt.LEO FOR RKOU4pTII2#I 1959 PA~E 2 A SOHM,~R'e A~At.eSlS Or T~ANSACTPO~S V~ ~'H~ y~,r 1959 ~'OLt.e~ MO~T~ PA~ VALU¢ O~s¢~UNT JAnUAry 111,O~0,00 13~1 ~ i~ FC~RUAmy 309,000,00 3~,9~2.50 NA.¢. 115,000.00 13.017.50 a~rlu g95.000,00 46,~62,50 MAy 11 g ,000. O0 15.~3.75 S~pr~ 88,o00.~ 13,225.o0 OcTosc~ IO7,000.~ 17,~7}.00 ocec~ 2o,eooc.a 3,23~.50 p~ "~u~ p~ CR~:~IT ~,~Ne~ ~';¢,~NS~'~RR~O TO ACCOU'~V NO. "~9 . [mc,r~'r • ~a-D~e~sE. ~1, 1959 168.20~.~ 495

730 - I~ERE~p £×C~ A~D OI~OU~ ~PEN~ 1959 866,333.35 ~ 3,~7B.67 4115/~9 - 7/15159 99183 3/15/B9 ° 6/1 ~/~9 7 i~o 4/15/59 - 6/30/~ 7 .~ ~/1~/~9 - 7/1~/~ ~3o 3/15/B9 - 7]15/~9 36.68 7]~/~9 - ~/31/59 ~,56

751 - INTEflEST ON TAX CONTING£~FE5 R[LATIVE TO pRICI~ yEARS . CJ~RI.TTES, ~IOKING. ETC. ~C~Mm.R 31, 1959 THE D£SlT S*U~NC~ O~ T~IS ACCOU~ .£m~ES~T~ TH~ N~m I~nESW C×mmNS~ F~R TH~ ~URmCNT YmAR O~ TAX ~H~S ACCOUNT .~COROS: A. 0~WS ~o AC¢OUN¥ NO. "5OL~ * p~ovlslo~ ton WAX cO~Tl~s ~L~WlW TO p~lO~ y~S ~ I~m~ST T~REON,~ TO ~aU~T ZSTI~O ~OU~T Or INT£RCS~ L~SI~IT~ ON m~lOR y~n$t ~X~S, ~pPL~C~SL~ TO ¢I¢~R~TT~S, SMOKINg, £~¢, A sUM~mY AMALyS~S O~ Tn~NS~¢TIO~S FOR 1959 ~OLtO~S: KI~ Or TAX INC~¢ ~T D~mlyS ro~ 1957 17,690-77 ~958 ~9,3G8.o~ 1957 3~.~5 1997 6.O3 ~958 ~.25 ~957 ~8.oo ~958 ~z.15 195~ ~,~8o.0o 1955 ~,397.5o 1956 3,~75.oo 1957 2,73o,o~ ~958 L~7.5o 1955 6.9~ 19~6 60,00 19~ 60,00 195k 29,~I 955 io8.~ 1957 ~o.oo ~958 3L67 (c ONT I t,l*~o ) 4#~7

~I - I~TEREST ON TAX CO~r'tNGENCIE$ RELATIVE TO ~IO~ yEARS . CIG~RETTE$, ~4OKINGp ETC, I~ECEM~ER 31 . 1959 PACE N~T D~TS FO~ TAX CR~DITS TO K~NO Or TAX Y~R ACCOUNT NO. ~955 1956 30.00 1957 30.00 1958 ~*.~5 NEW JeRSey F~^NC"~E 1956 ~.3~ ~957 ~3,~6 ~958 56,h9 NORTH F~,~ROLIT~'~ I~CO~ 1957 ~:i 1958 1 ,187.5o O~E~O~ ~XClSE 19~ + ~958 5,o75.3h 958 ~37,50 N~r ocelm ~L~.~E Vt~,~Sr~t~ ~'m ACCO~h~r NO. 'r999 .

732 - rNrERE~T ON TA~ CO~Fr Ir~GENCI~5 R£LATIVE Tq3 I~RI~J~ yEARS ~ CIGARS

~{~ . t~VING EXPUNSE . CIGAR~TTL'~, SMOKING, ['i~, THCR~ ~C ~O TRAnSACtIOnS ~ ~41S ACCOUNT ~U~,~ ~ ~E^~.

7~I - HOVING EXPENSE . CIGARS A. TF:~,N~F~ ~" ~FJ~T ~P,L~t~C[ ~,~ ~L~ ~J~" ,,~,~R IrO ACCOUNT NO* ~99~ . INC~<¢.1' THCR~ W~R~ ~O ~,r~SACTIOMS I~: T:~]S ACCOUNT ~URI~ '~H~ ~:An.

T~2 - HILITARY SERVICE AI.LO,~ANCE - CL~R[TTE$, SMOI(I~IG, ETC. ~959 D~PARTM¢~T *

7~ - MILITARy SERVICE ALLIANCE - Ct~RS 155~ A mU~AmV ANALV51S OF TRAm~A~TtO~ fOR TM~ VEa~ 19~9 ~OLLOW~. D~TAI:: *~¢ Om r~:z ~ ~E p~V ~O~L DE~A~T~NV. LOC~TmO~ AkLOWA~¢~ T~X~S I~UR~ BE~F~S TOTAL H~RTrORO O,vms,o~ 33.60 33.60 ~C~NVO~ B~c~ lo,2h ~0.2~

75]t - INC~,4F TAX O~ TAX~FI~EE COVENANT ~NTE~ST ~ID 1959 THE D~I~IT ISaL*NCE OF T~IS A¢COU~IT ~P~E~£~$ THE ~XF~S~ FO~ I~¢C~ TAX O~ INV~EST ~A~[, O~ ~AX~'~EZ

1959 A ~UMMARY ANALVS,S OF TRANS~C~IO~ eO~ VH~ WAn 19~ ~OU~S: 4~5

7~ - COST O,~ ~NS?RUCTION ~CTS ABA~N~D t959 ~IT ~*Ncz T~S~R~O TO ACCOUNT N~. ~I~ INCO~~ AMOUNT

~ - FL~D LOSS - CIGAR[TT~c~, S~IOKI~G~ ETa:* THIS ~CCOU~" R~CO~OS; I - ~mlTs ¢~R: B-- Tm~NS~R O~ ~C~IT ~L~C~ ~.T ~O OF ~R ~0 A=C~T N~. ~CJ~ - I~¢oM~*~ SU~MAR~ AN~LY~I~ ,~" TRiSeCtIONS rO~ TH~ "~ T~59 fOLlOW=;= ~ir~l~ ~L~NC~ rR~RR~ TO ACCOUN~ ~O* "~- I~CO~~ ~3.3o 4~'7

759 - rt~ LC~S - CI~RS ~959 THeRe ~ no T~A~S~CTFO~ ~n T~IS ACCOUn~ ~U~mn~ ~H~ V~. 4J S

7~1 - D£V[LOp~I~NT ERp[I,~ ~ pLAKq" EQIJJp~,ENT . CIGt~RETIE$, SMOKING~ ETC. 1959 ~V[LO~'~ ~n~r ~×~, 2 - ~n~l~- ~OR t~nsr~ o~ ~SlT ~L~NC~ .~¥ ~ O~ ~A~ TO ~.cCOU~T NO. ~r~c)9 - lUCO~E.'r DU~Ha~ ~V~L Or 1957 ~CC~O~L ~O~ ~PAI~ ~IR r~l C~ TO~L LcUlSVlLL~ BRA~C~ 1~.gt 351g 85~,c8 ~.~6a.~7 3568 *,5~o,86 3~3 5,~ 853.21 ~,805,~1 ~53

761 . DEV~L~NT EX~$~ ON pLANT CQUIP~I~ - Cl¢*ARETTES, ~OKING* ETC* 1959 Jo~ NO* 1952 ~286 ~363 2967 3o96 pA~ 2 288.01~ ~88,46 3,39~.38 258.zI 376.7o

~ - I]E~£NT [*~KN~K O~ pLANT ~ULFMENT ~ CIGARS 1959 A SUGARY A~Y~,5 Or T~NSACyIO~S FOR TH~ ~Z~R 19~9 FOllOWS: ~IT m~C~ Tm~NSFC~CO ~0 ACCOU.~ NO. "~ - I~CONEI~ ~T 2O0.99

790 - ~IISCELLAND~LJ$ EXP[t~SI[~ - OTHIE~ THAN (~I~A~ 1959 le~4~~ ;~T r~e~r~ ~1 • I~

791 - HISCCL~N~00$ EX~EN~$ - CI~AR$ 1959 T~E~ WER~ NO X~AN~ACTIONS RECORO[O bN THIS ~C¢~NT O~N~ TH~ ~ 42~

gOO + 51AGE INCOi~ TAXES - C fGARKI'TES, ~OK}Ng, ETC. [KCEH~R 31, 1959 A ~H~n~ ~ALV~IS or T~S~CTION~ ~O~ 19~9 r~LLO~S~ OtBrT a~L~¢C r~A~SV~R~O ~O Accoomr No, ~9t)9 - I~eOeae" ~T O~e~uo~e 31, ~959

801 - ~T~E I~K~Oh4E TAXES - CI~S ~C~BER 31 , 1959 THIS ACCOUNT U~CO~: . Cm~T ~O~ T~S~ OF ~IV ~a~a~c~ A~ V~A~ ~D mo ACCOU~ NO. "9~ o I~CO,~.~ A ~UM~Y aN,~LV~IS Or V~C~IO~ ~'O¢: 1959 ~OLLO~: I~C~ O~61T eAL~E ~aA~m~R~ZO Tm ACC~V NO, "999 - vo Accouwr No. "50k~8 - ¢~5

~IO . STATe INCC~ T~ CONTINGENCIES F~LAT IVE TG pRIOR Y~AR~ . C~IT[S, ~O~ING. ETC. ~C~ 31, 1959 T~ CmEOIT BALANCE or" THIS A¢¢CO~T R~mnES[~S ~HC HET C~IT ~O ~I~A~TW~, ~MOKrNG, CTe., INC~M~ N~T Cn~OITS fOR TAX DE~t~ TO Accrue. o~ ALAaAMA IN~m 19~ 1,891,67 eoto~,~o~ I~to~ 1958 5~9.63 195~ , :~, 1958 , >. LOUI~ I#,NA J~=O~K 1955 26.26 ~.N~o,,* I~ce~ 1954 ; 1955 : q ~58 98~,oT ~,saou~ ~¢o:~m 195h 13~.13 955 99,38 1 ~58 , ,h% .87 1958 Io,6c6,95

810 ~ ~TATE INCO,4E TAX CI)HT~NGENCI£$ ~ELATIVE TO PRI~ yEARS CIGARETTES, ~OKING~ ETC. OECEI4BER 31 , 1959 O~ Ac~o~o_r A~E~ICA~ ~pp~IER~ I~ O~PO~ATE~ ~O~TM CAnOLIN~ ~N~O~ 10,~9,35

~11 - ~ATE I~E TA~ CO~IN~MCIE~ RELATIVE TO pRIO~ yEARS - C1~5 DECEM~R B1 * 19~9 A BU~MA~Y AN~y~I~ O~ ~N~CWION~ FO~ 1959 F~LL~:

8~ - FtDERAL I~ME TAX 1959

~l~1 . FEOERAL INC~4E TAX . OFFSET TO TAX EXpENsE ON INCENTIVE C~pENSATION h~T DE'DL~'rlBLE iN CURRIE~F yEAR ,NCCmTIV~ ¢~T~ON ~Ay~SLt,Ir 2 . D£elt fOR TR~r~n OF C~O1• ~mCC ~ ~C~ ~ TO ACCOUNV NO. ~9~9 - INC~¢,~ CRKOtT ~NCC TmA~rERRED ~O AccOU~7 NO. "999 - INC~C't *T DCVA~C~ OF t~¢ C~Tl~al~ F~e¢~AL I~t TaX CA/cULATIOm rO~L~: pAyAe~ IN 1960 COmVIN~C~TL~ AVAI~a~ rO~ ~u~o~¢~t 1~9 1~O #.~ 1960 S~NFOm VIC~ p~c~lt*~n'r 70,320168 70,~0.6~ Es~,~w~o TAX R~t~ 58~ ~0~ Esvruat¢~ "t~,x ~ ~ ~19,75ZlI 3 ~:)()

~2 - F~ERAll Ek~O~ TAX ON ~JUST~tE~ Of1 PRIOR yIEAR*S I~TIV~ C(~4p~NSATION ;~D O~ DL~R[D INC[2~T[VK COMPENSATION pAyMEN'rS DEOUCTL~ FC~ TAXES I~ CURRE~T yEAR 1%9

~O ~ FE~IE~A~ INCCME TAX CONTI~I[S EECEM~R 31, 1~ A SU~RY A~A~y~,~ O~ y~NS~CT IONS ~O~ T~ YC~ 1~59 FOLLCWS: I~o~~ AT ~EC~ ~I* 1959 NeT DE~TS ~O~

880 - RE~'Ut~ J~ND AOJUS~IENTS aF FEDERAL ~ND ~T~,I"E TAXES Or FRIER YEAR$~ WITH INT[f~ST TH~REC~, L~SS RELATED [XPENSE5 19~9 TH~ CRC(~r~" B~,6,~NCt Or THI~ A~COUNT RCP~S~ITS TN~ ~T C~OIT ~SLrL~'I~*~ fRO'* ;~B~C~RN~L. ~J~pS AND

9~ ~ SALARIES AND TAXES 1959 TMI~ ACCOUNT ~ A CLeARInG ACCOST WHIC~ IS: ] - CHA~E~ WITH ALL NET SALA~I~S AN~ WA~S PASO TO CMPLOYC~S ~Y New YO~ O~FIC~ A~O - C~¢~I~ WI~H r~NS~CRS M~ ~y TH~ ~AY ROLL DEpARTM~ TO A~pRoe~IATE ACCOUNTS, A S~MARY AN~LY~I~ OF ~CTIONS FOR 1959 ~O~L~S. D~TAILS ~R~ O~ ~IL~ IN THZ p~Y R~UL D~PAR~M~NT. TOTAC CREDIT~

901 - DiY~DENO C~CTION AD~ClSTp~r( 195~ ~4~RC~ d~NE JUL~ T~U~ CO. "T~, C~IC~a ~0~ IL~NO~S 28~,00 MJ~O~I 4O.OO N~WYO~N~WYO~ ~0.0o Ico~r ~Nu~o )

oo-~9~ 00"00 L O0"Ol oo'gL~ 00"09 00"0~ L CO'O~ 00"~ 00"~ 00"0~ O0"OL 00"0~ O0"OL 3~vd 6~6L

~C~ ~ T~×E5 TO BE DISTRI[~JTCC) 1959 THI~ 4~ • OtST~IeUTIO~ ACCOUNT FO~ TA×E~ A~"~ I~rE~ O~ TAX~S P~ O~ R~FUN~¢O. 1 D~elT~ rO~:

9t] - OFFICE ~ACE AND E~IJI~E~ 19~9 THIS A~UNT pS A ~LE~R~G AccoUNT I~ WHICH T~E T~A~ R~NT ANO ~T OF ~AI~TAIHI~G ~E NEW yORK OFFIC~

911 * OFFICE S£ACE AND EQUIPM~ 1959 p~E 2 ~,~i.~Ncc mT Omc~8cm ~I, 1959 °0-

~12 ° 5~rATI0~qERy ANL~ pRINTING 1959 A 5t~R~ A~A~ySIS O~ T~A~S~C~IONS fOR TH[ Y=~R 195~ ~OLLO~: LoUISVIlLE L~r D~P~RT~NT~ 2 ,~O'D ,OO 1,80o,oo T *~O.OO 3~O.OO

912 = SI'ATIO~ERy AND PRINTING 1959 pA~E 2 2,339.~O 8o3.8~ ~2,88 5,7o7,o5 757.o5 148.6h 131.3~ 7o5.82 i ,9~.e8 2,358.65 z9~.5o ~T.O9 22O,7B7.~1 1,3~5,97 91o.56 320.46 915.~3 .oo 44~.

91 3 - T~IJ~DE-~F~K AND pATi~r,~T ~XpEt~$E (C~T~Nvr~JI

~1~ ~ TRA~-MARK A~O PAINT E~PENS[ 1959 pAOE 2 TOTA~ ~00~00 26,0O 26*00 11,OO 6 a,777.53 ],~.69 5,758,~3 Io,113.71 35,oo 1#,91o.78 Io,T27.55 ~79

~I 3 - TR~I~E-MA~K AND PATENT C~EN~d- 1959 13,230,o0 67.37 200 .OO 60.27@.~] B*.c.t~ct A" OEC~O~S 31, q959 39,6~ .CO 3,5~.6o ~,6~7.9o 163.oo ~o~.~o 8.00 -0-

91~ . '~06TAG£ 1559 A ~OMMARy A~ALySI~ OF TaA~CTIO~ FOrt T~ YeAR ~ rOLLO~: T~TA~. PO~TA~E EX~=~NSE -I9 MI ~E L~.W,N~OO~ .h3 26 .~ 316.21 5~2.3~ h.175.95 ~76.6~ ~2,31 445

916 - ~OSTA~ TOTAL ~l~'r~l~T ~OM 30.09 2h6.~O 52,o~ PA~ 2 -0- 44~

91~ - TLLEPH0CCE AND T[LEC/~A~ *959 TO,At COSY or VtL~P~ONt, ~'~LE~RAPH ~NO T~t~'TpE: "300 . ~W YORK O~'~'~cr OO~IC ~LLINC ~XPKN~ - ~96,e7~.58

917 . TIELE~,~C~N,~ A~ T~I~@~A~,I ~959 Cr~IAm~TT~s, SM~Kf~, ~TC." 2,21~0.I~I TO~A~. ~@TRII~UT~ TO BRAN~M~ .C. ~GC

~1~ - TRENTON EMERGENCY O~FICE E~E 1959 TH~S ^¢COU~T mE¢omOs TH~ EX~NS~S IN CONN~CTIO~ ~I~ m~ ~M~R~CV OrrlCE A~D ~ULT L~TED AT COLLEGE A~O DlVlSlON 5T~f£TS. TRENTON. NEW J~R~EY. TH£ TOTAL ~X~EN~ES FOR THE EMERgEnCY OFrlCE ~E ~¢¢UHUL~TEP t~ ~I~ ~CCOU~T OURI~ ~ ~O~XH ~O RE~I~TRI~U~O TO ACCOUNT NO. ~00 - GO,EmiL ~ ~OHI~TR~TIV¢ 44,(}

---

~9 . ~VDITISlNG D~T 1959 (C~TI~U~D)

9~9 . ADV~RTI51NG DEPARIM~qT 959 PA~ 2 CREDZ~: TOTAL MO~TMLy D~mr~s TO ACcOUnT NOS~ C~¢TT~S, S~Ogl~, ETC.~ T~TAL TOT*~ 8~LAMC¢ 0~C~MS¢~ 31 * 1959 199,h1~.72 52.89 3,290.80 ~,619.38 3,57~.~5 375.~ 6.256.75 1.395.7h 222.252.69 ~12.~5~.69 I0.(~o.o0 e22.~5~.69 . o .

~20 . ADVERTISING DEPART~£NT . ACC DIVISION 1959 (CONTINO~O)

920- ~VERTISIhlGOEpARTHE~T - ACC OIVI$1ON ~959 pAG~ 2 A S~M~RY A~ALY~I~ OF T~ANS~CTION~ rO~ T~ Y~AR 1959 FOLLO~: SALARI~ AND ~AY ~OLL TA×~ TOTAL ~OKI~G, ~TC,~ TOTAL B~LA~C~ DaC~M~R 31, 1959 I16,Z69.99 ~5.30 I,~52.OO 1,5~].3o 51.~5 123.174.63 1.~oo.oo 454

921 - DEPARTENT OF M~NIJFACTURE . CIG~,RETTE$, $,'.~INC~, ETC~ 1959

~l - ~_pARTt~'NT OF VlgNUVACTb'~ - CIGAF~TTE$, ~J4DKING, £~. t 959 PA~ 2

1959 PA~ 3 3,860.o9 1,250.00 z ,o8o .9b 685.2o 73~.96 38T ,i 38 .T6 -0-

9~2 - ~pART~E~ OF ~NUFACTURE CI~R~ 1959 T~I~ ACCO~ ~e~CO~O~ T~ ¢o~ Or op~l"~N~ T~A~" pORT~ON OF T~E DEp^RT~E~T O~ MA~UFAeTUR~ APPLICABL~ 'ra 458

~2 - ~pAF~T,N£N7 OF HANUF~CTURE - C IC~ARS 1959 pA~£ 2 3.o]9.~2 3,8% .84 11 ,o~o .oo 1,3~8.o8 689.89 31,G31,88 1~8~317.01 12100 5,~8.69 10.352.~1 e,~53.5~ ~i8~8.64 8~5120 38,00 ?,3~8,67 ~86.o3 196,683io~ -o- 45~

923 - ENGENEER~NG GROIP - F~IC~II~D, VIRGI~qlA 1959

~3 - E~INEERING ~ROUp - RIC~D~ VIRGINIA 1959 pAG~ 2 3.O09~OO -- O --

92~L ~ JERSEy CITy ~r~REHO~J~ EXPENSE - A~VERT~SING, S,I~LES ~ATERJAI~t ETC. 1959

92]; - dERby CITY WAREMOUS~. E×PEN~,E ~ ADVE~ISIN~, S~.LES ~ATERIAL~ ETC, 1959 PA~ 2 B~A~CE ~T D~CCM~¢R 31~ 1959 1E6,O~O.99 -o-

~2~ ° BR~H A~a41NISTRATI(3~J 1959 A 5~A~ ~NALy~IS OF TR~NSACTIO~ ~ TH~ Y~ I~59 rOLL~S: (CONZI~U~O3

925 - BRANCH IO~INISTRATION 1959 PA~¢ 2 N£T ~DJUST~nT TOT~k C~E~)T~ BALANCE D~C~B¢~ 31, I~ 1)?17.638.89 - o - 4~5

926 - MAINTENANC[ ¢Jr OUAI.IT¥ OF PR~UCTS E×pENS~ 1959 ~t,¢~ ~ I-o ~C~oUNT NO. "'~ . ~.C~ ~ltC~SX~,'~¢*~'r ,X~ SU~Q~tlT~," ~c~S~C~I~UX~ TO ~t~C~S. L~F DE~ ~1~6.75 745.33~.5~ 3OI ,703.G1 .O.

9~6 . h~INT~NCE OF Qt~LITY OF pR~D~,TS EXPENSE 1959 ~T,554.1T i.~2o.59 6,9~3.16 3.~51.51 ?~T2o.2~ 3~3,785.23 4~7

1959 A su~R~ ANAL~SI~ O~ IRA~A~Tt~S FOR THE YCAR 19~ rOdeO'S: 275.00~.65 T,69~ .39 92,~q6.1~ 51.T~1 .~9 1~6.536.?? 65o.~.~6

927 - SMr~OVE~4KhT$ OF PR~T5 ~p[~£ ~959 pAGe 2 H~OICAL COLL~¢ Or ~l~l~ AN~U~ Om~w yIm~l~lA I~TITUT~ ~OR SeI¢~T~rLc ReSeaRCH 3o6,eo~.~5 % ,O00,CO ~00,00 2,666.66 3S~.5O 20,000.00 1~,569,39 29,515.16

~7 - 4NF~O~/Ek4~T$ OF" PROOL~T3 EXPENSE 1959 TOTAL EXpeNSes GR¢OIT ~O~ TRANSfeR ~O TH~ FOL~OWI~C MCCOUMT~ ACCOUNT NO. "~70 . 5TORE A~O G[N~L AOV~I~ - CIC~CT~¢S, SMOKI~, ~TC,Fr BAL*~¢~ D~C~MBE~ 31~ 1959 71¢,181,o9 PAo~ 3 =0. NOTE - UNo¢~ TN~ ~¢r~M~ o~- R~,tR~ A~r~T OA~O OCTO~¢~ 1~, 79~ WFV~ THe V~GINIA tNST,~UT¢ ro~