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NOTICE DF MEETING Flemlngten, N. J:, Marek i, 19S(} Nozm~ m K~<~Y a~v~m that the Axmual Meeting ~ the Preferred av.4 C~mmuu S~o~kh~l<lors e{ TI~E A'z~c~ TogAcco COVZp~Ny ~I1 be held at No. 43 Park Avenue, FIemhlgton, ~New Jersey, at two o'olock in tlm ahernoon (Eastern Standard Time) on Wednesday, April 5, 1950, for the followhng pltcposes: (1) to ~leet Directors; (2) to consider and "¢ot~ upon two proposals (desi~aated Proposals A and B and set forth i~ the attaohed Proxy Statement) m~de by thre~ s~kholdcr~; ar~ (3) t~ transit ~eh ¢theY htl~r~e~s ~s m~1~ p~operly ~m¢ befc*r~ ~ald racking. The PreCerred and Common Stock transfer books will not be closed~ bu~ holders of Pxeferred Stock and Colnmon Stock to be en~igled to vote must be hok[ers of ~ecord at the close of busln~s on March 6, 1950. ]O~N ~. ~'~ANL~)~, SeCretary SPECIAL NOTICE I'Iolder~ af what was formerly Common Stock B who grill hold their Common Stock t; certiKeates ace r#mh~ded that, by amendment of the CA~arter of the Company on April 8, 1948, each shar~ ~ Common Stock B outahmding wa~ ~hsnged into one share ot Coln~non St~ck" wldl the voting ri~hts of Common Stock. namely: One wte per share. PROXY STATEMENT The enclosed Promy is so'Jolted ky and on hchaI£ of the IYianagement and is revocable tn wring. P:oxies in the ~rm eno~¢], proper1) cxccutet by ~toeldaoldecs and duly r~t~rned to the Managemen~ an¢~ not r~vok~d~ will be vo~od a,~d, ~ a eJloice be s~ecifie~ with resp~t to mat~¢r~ to be acted upon~ wi~ be voted ~n accorcla~ee wRh such spe~ea~io~s. The eut~an~ng nu~nber ~f e~c.h ~ass of votln~ sect~illes of the Company is: Preferred 52~997 share~; Common 5,378,4-95 shares. The Preferred Stock is enthIed to ~m~ vote~ per share. The Conmaon S~ck ie entkled to one "¢ote E~ .~bare, ELECTION 0]? D~RECTORS The Eoard o*] Dire~Lor~ consists of t~eventeen member~ who are ~leoI~d Lo hold o~ee nnlfl th~ next Ann~al b~ee~ing or uatiI their ~ueccs~ors are duiy elected an~ qualified, h ~ the ~ntent~on o~ the ~roxy Committee ~o w~ at thJs

.4nrmal 2,leetlng for the fullowillg nomhleeS. ~hc> together conshmt¢ the present Board~ add ~tho hax~ ~er~ed as dJre0Io~ Of the Conlpmly for the periol]~ eell!menelug with the elates sfatedL otter ~e[r re~peat~ names: ~fear l~:st Name IPrlnrlpml O~¢r~patlon Elect ed Direatar Ozpheus D. naxalys Vi~e-Prcsidonh The Ameri~.~n Tobacco Colla~any o~ the Orient, Inc. 1940 1~charg J. Boylan Vice-President, The ±knaerleaa Tobncco Company 1929 ]3ougIa~ W. B~a~hear Vi~ePr¢~ig~t, Amer~ar~ Suppliers, IncQ~pQrated h948 Thomas P. Col~n~r.~ Director of 'Italic, The d~n~eri~an Tobacco Company 1946 James R. Coon Vi~e Presidoat, Th~ American Tobacco Company I936 Joh~a _&. Grruve ¥~¢e-Pzezldent, The .am~eulL~an T~haec~ Corap~n? 1981¸ John S. Dowd Vice-Provident, American Suppliers, Inco~rated 1946 P~eston L. FoMer Vi~e-P~idcnt, The Amerlean Tobacco Company J941 Paul N. ~ahn ~ioe-Pre~dent, The ~Lraerlema ~2ubaee~ CompaW lg~ Hiram I/. Ha~ner Di~elor of Re~eaxch, l°be Americaa Tohae0o Company I938 F.dmu~d A. H~r~9, Treasurer~ The American Toba~) Company I992 H~rry L. }lilyard As~istat~t Treasurer, The thmexlcan T~aceo Co~npany lgOa~ A, LoRoy Jan~rm Auditor, ]'he American Tohac,~ Company ]¸948 JaJnes E. Lipseomb, J~ President, Amertha~ Snppllcrs, isworporated 191~ '~V~llism tL Og~ury Assistant C)fief o~ hlaan~a~ture, The Am~rlcan Tohacco Compai~y 19~0 Viucex~ Pdgg~o Pre~idant, The Ameulean Tobacco Compang 1927 James F. Strlchlang Vice-Pr~idemt, American Sa~pliera, Incorporated 1946 Ahhough the ~anageraent does not eentemplate the pe~athillt~ in the everat any ~omis~ee is not ~ ca~dldate or is mlabl~ to serve as a director ~t the ti~e of the electro,a, the p~oxles will he vo~ed ~or nny no~ai~e~ who sbul~ he tl~*gg~xat~4 ~ thB p~ent B~ltr4 ~f D~rector~ to ~ ~uck vae~ey Of the ,~u~taud&ag z~Uult~r,~ ~i the Cr~mp~uy ~t the eg~e ~ hu~i~e~a on February 1~ ~950, ~he Comgany is in[errand that the~e nora nee ~¢re d re~tlv or indlreetly tile bencfi¢~I owr~exs of seetlr~fies as follow~: ~arae I%m~ott Prefelrecl Orpheus D. BaxMys 819 ~8 Fdehard J. Boy]an 1,~140 200 Doag~an W. Rr~hear lO(I Thomas P. Condors 145 James it. Co~n 652 50 John &. Cro~e 2~0 5 John S. Dowd 240 Preston L. Fowisr 6D0 100 ~aul M, ~lahu 1.6~b Hiram iq. Ilanmer I~0 Edmund A~ Harvey 300 g0 Harry L. Hilya~d l_'2f~ A. LeRoy Jsn~ 165 James E. Llpscorah, Jr. 1,800 I00 William H. Og~bury 1~),0 fill ~isteent Pd ggio 5~g&2 ~ame~ IV. StrlokIand 320 Information re~ardlng the remuneration o~ direetor~ is herBtha~ter ~et forth under the eruption s~Remuneratioa". ~rvposM A. The Compaay ls intormed that Lewls D. C4~ert, ~oso addte~ 4~ l155 Paxk Avenue, New Yo~h 28, Nuw York. Joh~ d. Gilborh who~e adth'e~s is 1165 Park Avenue. New York 28, Now York, and John Campbell Henry, who~e address is 65 East 7(ith Street, New 'irork 21, New York, stookholders, intet~d to ~utroduee at the forthcoming Amaual Meet}ng the ~ullov~ng resolution (de~ignate4 ~xer~m as Pi'opo~a A) : "ResoI~.~ thal the ~lis,wlng elau~ ~hag he add~cl to th~ preaent provisions of Ar tiule XIl--That no~ivithsta~ging the above provisions for ineentlve compensation, the amoun~ to he paid to ~e Pr~aldent of the Corporagon shall in no event e~zeeed an aggregate total amount of $200,000 mad that ~i the ¥tce Presl~ent~ shall not be in excess o~ $150,000 each.~' 2

The proposei~ of lids resclatiou have fosnlshed the ioUol/ing ~¢~tenlc~l~ ~ettinS iorlh the rcag0n3 advanced b1 there in ~npp~rt of their prefect: "Now that ~eynolds Tobacco managcmen~ has adopted a plan <:ailing for ~adt~al eii~inatfon--over a ten year period--of their profit sharing plan mid Liffgett and ~yers o[gchhs eonklnae to waive a ~od percentage of theirs oaly Amealo~n Tch~eco continues to pay su~ amounts as $447,731.42 to its President (Total Compensation figures given in last Proxy Statement). Vlec Prc~dents reeclved address ~tals of ~246~688,84 cash. "~rc believe the managc~laIlt sponsored reductions of la~ year inedetiuato and that many agree i~ shown by the fact that 336,253 votes wcre ~ast for our similar proposal thai." Mr. Leed~ D. Gilbexls co-sponsor ~ Proposal A, has on five scpazate oce~slont~ at the Annual Me~h~ of 1946, 19~, 19~2, 19d8 and 1949, introduced proposal.* to change Artlde XII of the Coropany=s By-Laws h¥ lllnltlng the inoentlve eompen~all~n payable thelsundcr. The 194~ and 1949 proposals, wlti~ were identical with Proposal A, were introdueed by hlm and the same co-sponsors, MessIs. Ci113erL and Henry. ~ach of these proposaI~ lia~ hcen rejected by the stocld~alders by overwhelming vote. At ~e 1949 Ammal Me,~fillg, stochhalde~ cast d,g55~g47 votes opposed to this identical proposal Arli~le X~f o~ the By-Laws of the Co~npany wa~ adopted by the ~tochholders on March lg, 1912, by ~ vote of 62~,g~7 td~ares of stock ~n it~ foyer t~ 35 shares opposed. On the recerilmendatlon o~ the Management, it was amer~ded at the 1949 Annual Meeting of srochh~ldsss~ the effect of the ame~dment I~elng a suhstamial reduction ls~ the rate~ o~ i~eentive compensation payable under the ~Law. Th~ amended A~tiale X~I was adopted by the st~chhclders on April 6, 1949, by 5,I74~¢g9 votes in its favor to 110,290 votes oppose. It pro~de~ as follo~s: Section L As soon as practic~bl~ ~f~er the cud of the ~,ear 1949 and of each year of the Com~anv'~ ope~afloa~ thereafter, the Treasurer of the Company shall aseetm~n the net profits, as hereinafter d~mcd, earned by the Company during sash ~ar, and ~f such net profits exceed the ~mn of $15,g00,00G the Treasurer shaJl pay an am0nnt equal in the aggregate to li~e per cent. of such excess to the ]Precld~c~t and live Vine- presidents of the Company in lli= fallowing proportions, to wit: One-fourth thcceef, or 1~/~ per cent. of such mnom~t, to the P~csidenls onedilth of the r~nainder thereot~ or ~. per cent. o~ such amouah to each oi the live Vice-presidents a~ saIary for the yea~, in addlifon to the PuKed salary of each of said o~cers. Section 2, If any such office he vacant for a time amounting in the aggregate to one month in any year, so mush of the amoanS provided by this re~alutfon to be ~ald to the itacuxabent of sash ol~ce as is propor~onate to the time o~ such vacancy shall lie rett~rned in~ the general prolit accot~nt of ~e Company. If there sliall he a change daring the year in the inemmbent of any cl~ee, the amount hsrcinbefore provided to be paid shall lie dls.lded among the d~fferent ineuathents of such ofgc¢ in the proportion of their respcctlve periods of ~ncumheaey during the year~ slthjec~ ~ the above pr~v~sfon in ~-ehtinn to vacancies. S~ti~n g. ~or the purpose o~ this ~?-La~. the ~t profih, carried by th~ Cnn~p~y in g~ty y~a~ ~lall eonclst of the net sundogs made by the Company in i~s business a~ a manufaetozer e~ld sellzr of tobacco and its produe~ after deducting all expenses and losses, and such provlclons ms chalI he dpterm!~ed by the Board of Directors of the Company for depreciation and for all outstanding trade obligations, to which profil~ shall hc added, or from which profits thalI be dsdncted, as the case may be, the Company's prepowion (based o~ its stock liold~ng~) o$ the net profits or losses for tile year of its subsidiary eompan~c~ engaged ill the manufacture (dlrsetly or through the Company or any other a~llated company) and sate of smoking tobacco, cheedng toh~eco~ clgareltas~ or llttlc cigars. Section g. ~he deelarallon of the Treasure~ a~ to the anmu~t of net profits fo~ ~e year and the sum due anyone hereumlcr shall be binding and uonclu~ive on all parties, and no one chiming hereunder shall have a right to qgtestion the said declaration, or to a~y examination of the books or accounts of the Company, and ~otl~mg heroin confabbed shall give asy incumbent of any o/gas any righ~ to claim to continue therein, or any other right except as herein specifically expressed. Section 5. This Bytha~ may lie modified or repealed only liy the action of the stoclthalders of the Company sad not by the directors. The amendineut of Article XI~ adopted by the s~ochholders last year, while reducing the rates of ince~tls,e com. p~nsat~on ",'e:ty hgth,~t~nthliy~ pres~zv~s the edm~hnt of an ineen~'~e to ther,~d ¢~o~t and aeeomplishraem for stockholders. The e~tablithment of an athitra~y ceiling beyond which there is no such h~eenllge ~s incon~btent with the pfmolph of ineen~vo compensation and would not, ~n tlle h~,anagement's opi~on~ be advantageous to the Company and its stoclthalders. The ~fanagcmertt recommends ~hat 7on vote OPPOSED TO Proposal A. S

Propoaa~ ~. The C0mpan) is thformed Ibat the sar!le pr0pos~rs, M~rs. Gi]ber', Gilbert ~nd Henry, also intet~d to ~a~zo~u~e ~t the ioiL~e~g ham+a~I Me~ng ~e ~ollo~v~g ~e~olu~thn (tIe+~n~tetl hereth as Pr~pe~a] B) : "R~ol~'~, that the stockh~lc[ers ]~ereby reqtte~t thv B~(I ~ DJr~eto~ to f~]~e appropri~e step~ to suh~it t~ stoa~oIders ~t~ amea~roea~ to th~ CertlJ~cate oi ][n~orpa~a~i~n prov~dthg thr e~zrn~at~ve votlng+ that i~ t~ say tilat at a~ e~eetJon~ ~ thre~to~, the ~oekhold~r~ ~a~ be~'e thv right ol e~m~/ati~e vo~oag, whlch J~ to sa~ tha~ each ~to~belder ~ha]/ be entltIed ~o ~s ~ay vote~ a~ sbai1 ~quaI the ~umher of vot~ whic]~ he wauid he entitle~ to e.~t lo~ ttht e]e~6on o~ d~re0~ors ~vith respect to ]~is sh~res o~ +rock m~ltlplied by the na~ber o~ director." to /~e e]ee~d and he may Cast ~1i of ~th votes ~or a s/~e 85xeeto~ or may di~rthute them ~ou~ the ntmaber to be voted ~r~ Or a~ay two or more of them ~ be ma~" ~e~ ~?' The proposers of this reao]ufien h~tve ft~rni~bed the following st~teoaent +etLth~ th~th tho rea~ur~ ~dwnced ]~y them in ~upport of their ~opo~al: "Ctmmlativc voting ~ particularly imporl~nt at +4meriean T~ba~ because at present tl~ere ~e or~ aza" cmploye~ or~ t~e Board of Dir~e~ors~ Ther~ ara n~ aat~zJ~, d~eetor~ ~ ~ ~t~., e~m~.~y "a~ mos~ ~orporati0ns ~x+da~ Ma~y ~tockboklers ~ the r~ht to elect dlre~tors a~ A~erlea~l Tohaeeo ]~y ~umtdaflve ~. T~aS~ tm~ be~ ~t~wn by the th~ ~aat ~5 ~otc+ ~e~e ~ ~or th~ ;p~opos~l of ~ ~t ~r. |~ you agree with thos~ of yoar ~llow owner~ ~o vot~n~ please mark ~o~r b~ot for t[~i~ propo~L" The same prop0~er~, 2de~rs. Cilbert, Gilbert ~c[ Henry, thtro~uced th~ iden~ieal proposaI ~t the Aanual Me~tJ~g The Ion~.eont~ued reeont ol s~eeessthl operalthn of the ~omp~ny'~ I~usthe~ b~ dlreetors giving their enttre time and effor~ to the +ervlce tff th~ C~mpany an~ ~ts ~ubsi~iarles ~ndicate~, in t~e ~p~n~on o~ the ]~Ianage~eut, tha~ ~:au~8+ ~t be ~ the ~atere~ ~ the Cam~y t~ ~th~ate ~h~ at~th~eat t~ ~e C.~ztlf~ a~ ~e~t?~i~. The Mar~tem~ reeomrr~nds tha~ ~t~ ~ote OPPOSED TO Pr~p~l/L q~le Mana~mne~t ~ not now a~are of any other matter inte~de~ to be presented ~or aelth~ at the meeting. KEMIJ]NEI~.TION R~r~merat~ a] D~rector~ and O~er+. There is ~t thrth in the ~ollowing ~bedati~n the ~ggregate remun~a~[on ~ire~tly ~r indhreetly pa~ or ~er ~m~e, o~ an accrual h~s~+~ ~y the Con~p~ny a~ ~t8 ~s~arlcs to, er io~ the benefit of, th~ ~o]lo~ng persons ~or servers in all c~pacil~e~ while ~ctln~ ~ d~rectors or ~eers of tile Comp~x~y during ~s last ~i~cal year: ea0h person ~o wa+ ~t dir~3t,~r o~ lhe Cempany at any thn~ during such f~scal year and whose ~regate xemunerafion~ ~:clu~ve o~ p eal~ion, retirement and ifim~Jar tl~yme~f~, exce~d ~25,000~ eac~ pcr~o~l who was one ~ the three hlghe~f,paid o~e~r~ o~ the Cem~any thtrln~ st, e~t /~cal yea~ and whe~ ~greg~te remluilvrati~n~ exclusive ef penslen, redr~men~ aa~l ~hnthtr pa']men~m, e~ceed6~[ $25,0(}0~ and all pcrson~ ~m ~t ~roup, ~ho ~.er~ dlreclor~ or ~eers of the Comparty at any tlmc dur~n~ Bueh fiscal year. Wher~ tbe total remuneration e~ce~cls by mole tben tea par eer~t, the t~t~ re~ttmer~tt~ ~ tile p~ee~[~ ~a~ y~tr, t~ ~'~ ~ ~a~cl ~ C~I~-~a (6/. F~5~ta~ a~t~aal r~ti~'~ment henefi~ ~ the same indivfJuals at nol~aal r~[~remr, nt d~te ur~der the Rel/rement l°lan :~or arapIoyees ~dopted by the stoc~beldex~ n~ ~e 1969 ~a~t~al Mee~thg are ztme~ 5n Cobe~ (7)+ (I) (2) (4) or lde~tiIy o~ ~coup temune~t~o~ ~s ~ec~v~ ~a~f~| ~u i~'o/~t ~ Director, The AJ~cr~ '['ab~eo C~p~ny of the P6ch~rd J, Boyl~a Vieo-Pre+i~ ~nc[ D~re~or o~ ~0,000 ~204,44~.0~ p~e~a~, T~e A~¢vi~an 'To, b~eco C~mpany (7) Applicable R~ir~men~ Groa~ ~ce~ o~em at Norm~l ~Ir~n~e prev~ns i~llr ~m~nt pr~ ye~ ]D~te $16,??B 69.64 17,000 (,~] A~ialed ec~tpa~y ~ngBged t~ par e]lase ~lnd ~ ~trt dlin~ nf leaf t~baec~+ ¢

17) Estimated (5) Annual Apolicable ILedregtent porqon o~ (6) Benefit /I) (2) 14) Group igxee~s over at Normal Name o~ indivi&lal CaImciffes in whteh (3) Participation Insistence previous ~el]rement or identity o~ group remmaerafioa was xecvilrea Sal agie~ ~n pzll~s premlum your Date Douglas W, Brashear Vi~ePres~de~t, American Sup- $40,000 $69.64 $4,99611 $!4,000 pli0rs~ In~orpora~tt (a) ; (~n- era/ Manager of Sters~aeries Thoxaa~ P. Cormo~ Director of 'l'raf6~, The Am~r- ?f3,~06 69.M, 2,906.11 1L0~g icaa Tobacco Company Jamez R. Co~n(b) Vice Frcsldea~ ~d C~mptrgl. g0,0aO $236,sdt8.6¢ 60.64 17,t200 ~er, The ,~erican Tobacco Company Join~ A. Crowe(b)(e) ¥ice.Frcs~d~nfi The American 50,000 159,657.97 69.64 159,634.08 17,000 Tobaooo Company John S. Dowd V~e-Freside~t, American Sup- 50,000 69.64 9,9~6.11 17,000 pliers, Incorporated(a) Preston L Fowled(b) Vice.President and Cll[ef of 50,000 204~$f8~66 69.64, 15,033 Maauthettlr% "~he Alaerican "12obaeea Comp~ay Paul M. Hahn(b) Viee-Pr~sldonfi The American 50,000 204,443.6¢ 69.64 I7,000 Tobaooo Compsny; Presb denL A:~lericaa Cigarette and Cigar Company Hiram R. ISanmer Director of Re~earcli, The 32,500 69.64 IL900 Ameri¢an Tobacco Company Ed~n~nd A, Harvey Treasurer, The American To- 50,000 69.66 17,000 ba~o Co,albany Harry L. Hilyard(b) Assistant freazurer, The Amer. 4,0,000 69.64 4,996,11 11,I$2 ieaa Tobacco Company A. LeRoy 316nson Aud~tor~The AmerlcanTobacco 36,000 69.64 6,585.37 13,625 Company ~ame~ E. Lip~eomb, Jr. Pzesi~ent, ~raeficau Supplies, 32fi,9~3 69,64 ~5,0~3 Inoorporafed (a) William H. O ~b~tx7 Assistant Ch~oA ~ M~uf~c.t~r e, 5fi,(300 69,6& 17,000 The American T~baceo Com- pany Yineeal Riggin(b) PresidenL The Amerlcan To- 120.600 340,76%72 6966 25,000 bazeo Company James P. Strlokla~il Vie~-Fresldent, Amerleaa Sup. 50,000 69.64 9~996,I1 15,5~4, pliers, Incorporated ( a ) Direo~orB or Omccrs D~reetors or Ogicers as 936,500 1,31~,I8025 1,253.52 as a gro~tp grotl~ (&) ~bIiat~d oo~pnny ~nga~*d i~ ~ttrdx~o sxzd lmndlln g o£ acai to]~c~. (b) Also o~¢er o~ */52dated company oz ~ora0ani~s. (e) Electecl a Vico-Presldent on }.larch ~,2, 1949. The ara~ur~t re~orled ~a Calurrm (6) is ~eo~nted 5or by 2arti~ipati~ as ~ ~e~ P~r.~d~,t uttd~c Axti~ k~ ~r ~ 9 m~h~ o~ 1949, ~ ~g~it~t ~ ~c~t~t~z~, ~ 1040. The araomats stated in Column (if) above were a~crued as incentive compemsation (ba~d on participation in Company profits), trader Article XII of the By-Law*, as amended by vote of ~he slockholder~ at tlzo 19~9 2~nn~ Meeting. No lees or c0mmisaions were paid to or for the benefit of auy of tb~ individual6 ll6te~l tthove. Ther~ were no penslo~ r~firemem or similar paymc~N to or ~or the benefit of directors and officers of the Company. 3

The i~etlrement Plan For employees adopted by vote ot the stock'raiders at the 1949 Annual ~eefing covers approximately 18,850 reguinr folbfme employees of the Company and its subsldia~ies. The Compa~ hss mah*talned slnc¢ October 1, 1~16 a group llfe ia~uran0e plan whloh cowrs aB red,thor fuBdime employees of the Company and of it~ eo~solidzted American sub~diazles and certain employees of other subsidiaries, the maximum amonm of i~urancc there/ruder inr any employee being llmlted ~ $1~,0~0. Th~ amount of group Bfe fosu2ance provided for each employee is determ/ned by kb~ ~asid mmanl pay. Each of the editors a~d directors was instated for $I0,000 under such polloy. The cost of the Bmurance is payable ratably by the Ccqnpany and such suhaidiaale~. Th* total number of ~mployees insured un~r the pla~ on January 1, ]950 was approxim~tely 18,500. Th~ agitate anaount of remnnera%i~ for the fiscal ~cax 19~, ~eeb~ ~om the C~upany a~d ha s~bel~a~es, directly or indlre~tly, on an accrual basis, hy all the directors and o~cers of the Company as a group~ was approximately tw~nty-slx one.bundzedths of 1% of the Corapany% consolidated net ~ales. M2BCELLA~NEOU$ Any stocldielder making wnV.en request therefor to the Secretary of the Company wiR bc furniBIed a smmmary of the Annual Meeting that '~tiI be prepared after the raeeting ha~ been held. Messrs. L)haand. Ross Bros. & Moatgomery have for re,any years been the independent auditors for the Company, a~d are appointed by resolution of the Board of Dloe~tors. In accordance with the Company's custon~ary practice, a mouther of the firm of auditors ~ill attend the Annual Meeting and respond to questions which may be a~ked by stookhelder~. Comments or suggestin~ by stockholders w~th regard to file audit are w~leomed, as they are with regard to all other roarers affeetlnff the Company's ~nterests. Plomington, N. J., is ~cached by the Lehigh Valley RabIrosd. q]le present traht schedule, wkink ~ subject to chai~go and should be eonfimned, is as follow~: Leave Pennsylvania Station (5drd Street and Seventh Avenue, Nece York, N. Y.) 10:55 A.M. Arelve Flemlngton 1~I;10 P.M. Leave FTemlngton 5;07 P,M. Arrive Pennsylvania Station 6:35 pIVI. "[he Company wilt procure railroad transpofta~o~l, h'om New York to Flem~rrgton and ret~n, at Company exp~r~e for any stoekhoI~er of ~e~ord desiron~ of attending the meeting, on Ids nofi~ylng the Sccretar~ in writing, prior to March 31, 1950, that he w~shes such transporta~ioa obtained. If yea do not pIan to attend, you are urgently requested to execute the enclosed Prow and mall it to the Company promptly. Expense el Solfcetatiom The expens~ of the selinltsfion of Proxies for this meeting, i.chal~ng the oost of mailing, will he borne by the Company. In ad~hinn to melfoag eovles o~ thls material to stockholders, th* Company wM request persons who hold stock in their arena or e~tedy or in the name of nomluee.~ i~r other% to forward copies of suck material to those persons lbr whom they hold stock of the Company a~d to request anthorky for the execution of ~he Proxies. The Company may relmin~se snob pemon~ {or their out-oLpocket eXpelmeS and clerical charges in eonneotinn therewith, wlfich expenses are em~,ated to be about $I#00. To the extent necessary in order to assure su~oinnt representation at the meeting, o~cmrs and some xegular employe¢~ of the Cotl~pany and approxhnately 6 emaployee~ of Philip G. Cameron Compmay will reqtte~t the ret~n of Proxie2 by telephone, telegram or in person. at an estimated cost at about $12,500. The amount of the exp~nse to be harn~ by the Company wUl depend upon the volume of shares r~prese~ated by the Pro:des received promptly in ~c.~ponse to this Notice of Meeting. if Proxbs are not ree~ved promptly, it may be necessary for~o ~end teleg~'aphin solicitation to those s~oel2aolders who haw sot responded. The expense of such telegraphin selkdlation would be about $2,500, Stoekhelde~s who do not intend to be present at the Meetqng are urged to send in their ProxioA wBheut delay. Prompt response is helpful, and porte cooperation will be appreciated. F~ruary 9: 1950.

THE-A-MERICAN TOBACCO COMPANY FOR THE YEAR ENDED DECEMBER 31t |949 WITH CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF INCOME AND EARNED SURPLUS Executive i Office i 111 FIFTH AVENUE • NEW YORK 3, N.Y. j,

HIGHLIGHT5 OF 1949 1949 Net income pe~ common share ........... $7.80 Dividends paid per common share ....... 4.06 Net sales . $858,896,08~ Net income ..........................,...i ........ 45,676,154 Dividends paid (preferred and common) 24.675,682 Portion of net income invested in assets used in the business and to provide for debenture sinking fund requirements . 20,999,472 Current assets December 31 383,761,695 Current ]iabilitie~, December 31 i[32,93t,653 Net working capital, December 31. 460,830,042 Number of stockholders at December 31: Common ................................................. 64,104 Preferred ................................... ::.....: ......... 8,813 i 1948 " $7.58 3.75 $873,466,917 43,912,204 23.381,074 20,681,130 567,883,212 126.387,405 441.493.807 63,425 8,848

THE PRESIDENT'S LETTER Mooch 1, 1950 To the Stockholders: The accomp~ymg kncmcial statements submitted by the Treasuzer, including the report of Lyhrand, Ross Bros. & MonLgomery, Ce:~tified Public Accountants, present the result~ of the Company'e con~olldated operadorm in 1949. This Annual Report also con~in~ a summary of :~nanclal highlights, which appe~s on page 2, and a digest "1949 Operations at a Glance," Which appears on pages 12 and 13. SALES and EARNINGS Consolidated net income ~or 194-9 was higher by SI,762,950 than for 19411. This increase was primarily due to the fact tha~ the ctlrrent wholesale prices of LUCKY STRIKE Cigar eILes arid oIher major ciga~eLte bmndI~ of the Company plevcdled throughout the year 1949, whereas in 1948 lower levels al prices were eKective up to July 29 of that Tear. Sales volu~e in dall~ an~ units in 1949 was sliqhth/ lower than i~ 19~8. Over the years the inlense competition whlch exists between clgctrette ~analacturers has re.~altec~ in ~fts fr(~ t~me to fi~e in the ~ela~v~ volu~ al th~ ~iou~ hrc~s. Durlng I949 such a shi~t (p~cukaIT favorable to the br~nds with smcdler volume~ again took place. Th~s, while tl~ ~[t ~ales of LUCKY S~IKE C~g~re~es show a decline, rids was largely offseL by an increase in o~" sale~ of PALL MALL and HERBERT TAREYTON Ciq~eLtes. DIVIDENDS The dlvklend on the Common ~ock, payable March l. I~50, consis~ng of the ~egul¢~ tizst quarter dividend of 75 can~s per sbure and an extra dividend of $1.00 per ~hare is the 178th consecutive dividend on the Cernn~on St~ck of your Company.

Every year smoe 1904 divklends hnve ~een pcdd on th~ Coramon Stock, With the ~xception ot the years I911 r~nd 1912, dlvidsnds hc~vo been paid every quoTter without interruptaon. The practice of considering gn extra dividend payable m March of each year Was ir~augurated ec~rly in 1949~ It is not until after the year end that your manage- ~en~ is in c; position to revlew the final resu]L5 o{ the preceding year's operallons and in the light of the~e re~uh~ and the Compc~ny'a fiilc~ncial needs to determine prudenfly the ~dvisahility and amount of an extr~ payment, EARNINGS INVESTED IN THE BUSINESS D~llar sales volume m 1949 was $899,99~,089, as compared w~th $270,870,590 m 1939, ~n years aqo. Because of [his much larger volume of sales which required the ]~uzchase of Ieaf tobacco in larqer qu~ntitle~ ~s '~el] as ai ~gh~ prices, ~nd a qenercd ~nd sL%bsi~itlcd inc*~ec~se in the cost of 01most all oilier corrzmoc~tie~ and services used by the CompcIny, ]argeL ~rnotlr~ts ol opercrilnq c~l~ita] have ~een needed by the Company, The greater pa:¢~ o~ such need~:I funds has be~/~ obtained by the sale by the Company of it~ debentures ~nd sho~es of its stock and by b~n~ bo~rov;i~. [n ~4d~ti~ t~ ~uch [inc~r~c~g, ~pp~m~tteIy $66,70~,(]Qt] h~ beer~ ret~ned from earning~ du~ing the last four ye~'s to p~ovids additional amounts of pany would oth~lw~se h~ve to ohta~ by equity ~nan¢ing, or ~ro~n other sourcos at coilespon6~ng cosl In inlerest cha~g~s. P~suan~ ~ t~d~ pe~thy, $2g,~9,472 ~ ~6~d t~ s~plus i~ I94£. Thi~ ~r~unt represenis the bc:]anc~ o~ ne~ earrdnqs for the year ~tor the p~ymerit o~ PreSsured FINANCES While viurh~g 1949 n~te~ ~ay~hle t~ h~k~ iu~eased $8,(~Q0,00(1, the ~q;eq<~ of tunded d~bt ~nd notes payable to banks decreased $1,211,000, ~n~¢l cash in banks and on hrin¢l tne:~ed $1,773,~Z7. Funded deb~ czt D~ce~ber 9h 1949, ar&o~uttec[ tn $236,~69,290, a~mpace6 w~th $245,280,250 si Decera}~,~r 31, 1948, the d~f{ezence of $9,21],000 r~presentmg the yea~. Slnk:.*~g thxid ~e~uirements for the varlou~ debent~e issues will ~ggregate L

In the absence of 1~nusual or unpredictable changes in bushLesg cone~t~ons dur Lng I@S0. khe {irLonc[~l resources of your Compeazy should ba e~decpla%e for the needs o5 [he near ~/tur~ wi[hout 11sw f~nancmg. .... INVENTORIES For e~ n~irnbel of years past the alnou~It invested i11 tile Comp~r)y's ~ve1%torie~, p~incip~lly leaf tobacco, has increased substantlalIy. This is due pnznafiy to two impatient feictors: one is [he ~lecess~iy for rle~ntcdnh~q cldequczto ~nvento~i~s o~ proper~ cLged tohaozo coa~!sle~1~ w~th the vobira~ o5 the Compctny'~ h~a~kze~s. The h/rger volunie of safes during th~se yectrs nat~rGlly hc~s required o proportionate increase h~ the pounch~ oI tobc~cc0 [h~ Company should ke~p on h~i~d, A large pa~t o~ [he [hcrease in i~von~fies hera occa:zod in the last fouz year~, duzlng which firn~ lhe Co~rlp~r*~ ~s he~21 endeclvo~ira~ con~inuo~As]~, 13y ~ro~er i~crec~£~s o5 q~ltit~ to brlnq inventories into ~ more de~irahl~ relc~ianship with sales volurae. Th~ other iln~or[a~t ~actor which h~s n¢cesslt~[ed inI!reased inves~raen~ in ~tlven- to~ies is [he impact of ~he higher prices wldch the Carnpany h~ had to p~y for [ha ciqarette qr~d~s of lea~ tobacco that i~ uses, ]n 5949 tLe awra~ pzices p~id for [he Con~pcmy's ~qarette 9~'ade* of Flu~cured and Bu~ley tohc~cco were 139 per cent and Th~ n~t increase in the Co~lpan~'s inve~inleni ~n ~nvento~es O~ leaf [oh~cco, m~nu~ctc~r~d stock, op~ra~ng supplies, etc. du~[hg 1845 IotaIled S16,5S8,8~8. The ~qricultural p~co suppozt an~ acr~ge ~on~ro| progran~ of the Federal gow ernment will prob~Iy ~esuZt in p~ice~ of Iea~ tobacco ~.ernc~ng ~elaflvely I~qh in the TAXI~S Ped~ ~nd ~l~te ~c*xe~ ~n the ~ncon~e el the Cornp~u~y con~inu~l io ~ke ~z m/h~ stan~ial portion of earnings. T~xes on ~neom~ ~or 194S amounted to $~0,36],000, which is 40,85 per cent o~ the income berate taxes, aad is equivalent ~o $~.~4 per share o~ Comr~on Stock. CONSTRUCTION Pla~t an~ eq~pmen~ c~ddilions du~inq the ye~r~ ~motL~ted to $4,754,3~5. While ~he expansion Inop~m ~egu~x in I~48 h~s been completed, cOl~l ~xp~dltu~ ~411 Be r~ade wherever sc/vinq~ ~n cost ~n be ~chleve~ or ~vh~r,~ iraprover~ent in produc~ or expczndinq sales n~c~y me,he ~u~h investment p~o~b~e. I •

RETIREMENT and DISABILITY PLAN At the last animal rneeth]g o~ the stockheldei~ on April 6, 194fl, the Plan prov~dinq for ~otirement a~d dls c~bilily benefits/or emp]oyees, which w~s desc~bed In last year's A~n'~el Eep~ ~n£ ~ the p~oxy ~i~me~t i~ th~ m~xng, w~ ~pp~ve£ by appr o~i- mateIy 98 per ce~t of the votes c~st at ~he Ine~i@ng. Unde~ the terms ot the pr~pes~l auhmitted to the atockl~Idem the ~Icm h~e operative as el ~almary I, 1949. Payments mado under the plan and chalged ±o income in 134fl alnounted to $49,~4. It is expected Lhc~t retirements ~nder the Plan will increase in the years ahead c~n~l float, therefore, the cmnud payrnent~ ehaJ'qec~ble to income w'dl increase accordingly. On 1V~arch 22. 1949, ~4r. John A. Crowe, A~slsianl Chief of 1VIrmu{acb~re, was elected a ~/iee Presi£ent of the Company. 1Vlr. Crowe has been in th~ service of The American Tobacco Company for 89 years. On behalf of the Bo~d of Directors I wmh to oxpress our gpprec~ufioa :[o*" [he good work ol the Compclny's employees. ~or Lhe helplel cooperation 01 the many dislribufor~ o~ the Compcray's products grid ~or fhe Cons[~¢llve interest o~ the Company's slockhelders. VINCENT I~IGGIO Presldenl 6

CONSOLIDATED $TATE)IENTS OF INCOME AND EARNED SURPLUS Im~lu~ll~ Ame~ca~ Clg~z~tle a~td CIg~ Comp~F r~nd ¢~II wholIT owned foR" ece eee : $ALES, Iess ~decrnd cash discounts, returns ¢nddlowanees ............................. $858,996,08£ Cost of sales, selling, general and adlr~inis~ra- dye expenses ......................... 775,720,872 OPERATING PROFIT ....................... 83,275,117 Add: Dividends and interest from sub~idi(zdes not consolidated he~em ~Nole I~ .... 883,397 Other dlv~dends and interest ............. 51,39~ Other income ............................ 153,4~6 D~duct: ]Interest amortization o~ discount a~cl re- demption premium on ~% debentures 7,528,542 Other interest and discount .............. 1,481,345 P~ovzsion lot ~ese~ve against investment in Br~dsh subs~dlazy .................... 400,000 Portion of net income of Arne~icat~ C~ga~- ette and Ciqar Company applicable to mino~/t y Interest .............................. 159,690 Othe~ ~xpe~ses and ~osses ............... 466,705 Incor~-e, before state and federal income taxes Deduct: State income t~xes .................. 2,62%000 Federal income taxes ..................... 27,734,000 Add, Refund ~tnd c~djustr~ent of prio~ years' lede~al and state taxes including interest, $873,466,917 784,128,817 79,340,100 $ 84,363,401 less rela~ed expenses ...................... NET INCONIE ................................... Deduct Cash dividends on preferred stock, S6 per eh~re ............................ ]~ala~1.ce added to eo~%ed s~plus c[ccouil~ E(~l'n~ surplus, ]:)ecj~lning ot year ........ Deduct, Cash d~vidend~ on common stock 1949, 84.00 per share; I948, $3,75 per EARNED SURPLUS, end of ye~r~ (Note 2) ........ 840,491 57,078 147,868 $ 80,385,537 7,418,980 1,298,739 200,000 1~5,332 10,036,282 820,561 9,8B1,612 74,327,119 7&523,925 2,253,0D0 30,361,000 26,099,000 28,352,000 43,966,I19 42,I71,925 1,709,035 1,740,279 i 45,675,1~4 ,912,2 4 &161,982 3,16L982 42,513,172 a_O,75&222 12G363,011 99,781,33I 162,87G183 140,532,103 21,5t3,700 20,I69,092 $I41,362,488 8128,363,u11 Depreci~don provided o/Id chc~ged to COSts and expenses (xmo%lnte4 ~o $2,800,514 in I949 ~d S2,213,314 ~n 1!)48. The notes fefer~ed to above are ~n integral part of ~hese stedemenls, 7

CONSOLIDATED BALA C] SHEE2 d L :i ASSETS v [nc]uding Ameicsn Cigarette and Cigar Company ¢mcl aI] who]ly owned do Demand deposits in banks and cash on hal~:l ................... Accounts ~eceiva~le, customers ........................................ M~sce]ianeotts accolin~s recetvclble ............................. Leaf tobac~ manufactured ~iock, opezatlng supplies, eic., at 1949 1948 $ 17,949,456 S 16,175,829 I 33,127,95I 36,019,685 J 544,I45 528,243 average cost ............................ 531,557,886 Cash on deposit with sin~ng fmtd trustees for redemption of debentures ........................................................ 459,777 Recelvcb]e~ ~rom unconsolidczted sub~idicades .......................... I22,480 To%a] cllrrent assets ..................... Noies rind (/~cottn~s receivcble f~om tlnconsolld(xled SuLbsidictries ~Including in 1949, $581,268; 1948, $582,033 from French sv]> sidiarT) ...................................................... [IlvestrtlelltSr fit ~iT*Oi/nts no[ i/l e~{ce~ o~ Cost: Securities of subsidiories nol consolidated herein (Note¸ 3): Wholly owned B~idsh .......................................... Others ............................................................ Other il%ves~ment s ..................................... Toter] inves~rnent~ ................................. IV[ortgages, note recelvsble, insuxan'ce rleposits, etc ............... Re~l esiale, n3.cLchinery, Jlxtures, etc., tit COSt ~less cdlowc~nce [or depreciation, t949, $27,194,023; !948, $26,082,678) ............ Prepcri`5 expenses emcl defe~'ed charge~ ................ Brand~, ~rade-marks, p~te~ls, goed will, efc ........................... 514,958,038 58,973 142,444 583,761,B95 567,883,212 3,,581,268 2,582,033 5,400,000 5,800,000 8,680,031 8,645,702 371,`594 372,409 14,451,42`5 I4,818,11I 1,860,487 1,918,486 43,506,609 41,858,630 3,344,£28 3,515,I94 54,099,431 54,099,431 The notes zeferred to above c~e an in

AS OF DECEMBER 31 mestic subsidiaries except The American Tobcccce Company of the Ori~mt, Inc. LIA"'L'T'mS 1949 1948 Notes pc~yccble to banks ............................................. :~ 80,000,000 $ 7Z,000,000 Accounts payable ...................................................................... 4,265,039 8,51~,725 DlvMend on preferred sLock tot qul/r~er ended December 31 790,496 790,496 Accrued inlerest ........................ 1.034,091 1,[172,910 Accrued taxes .................................................................... 34,g(35,749 34,94fl,390 Adver~islng and other acc~ed expenses ........... 2,056r319 1,834,072 DebenIul'es fo be redeemed throuqll sinking fund opercdions (Note 4) ............................................................................... 9,894.000 g,2l 1,000 Payables to unconsolidated subsidiaries ............................ 185,959 12,812 TO a cuxrerL ctbil" es ................. 132,931,853 126,387,405 Tluee per cent debsntures (Note 4) ............................... 225,544,000 235,238,000 Four per cent bonds mfzturinq August ], 1951 ................ 831,250 881,2,50 359,206,203 362,458,855 Minoriiy interest in Americars Cigarette m%d Cigar Company 884,756 782,750 CAPITAL Capital stock (Note 5): Preferred, six pel cent cumulatlve, par value $100 per sha~'e .... 52,822,700 52,699,700 Common, par value $2,5 per shca'e ..................... 138,802,450 I3G,803,450 Exces~ o~ l~.et proceeds from sale of common stock over par value 20,,575,59I 20,575,521 210,078,74I 210,078,74 I Earned surp]u~ (Nolo 2) ........................ .................................. 141,282,423 120,363r011 321,441,224 330,441,752 Less, Treasury mock, at cost (93,713 shares ot common stock) 7,007,060 7,007,060 Total capital and surglus, Iess treasmy stock • 344,434,164 323,424,692 $704,605,823 $688,675,097 ;ral par~ of ~hese slafements. 9

NOTES ACCOMPANYING FINANCIAL STATEMENTS I 2 .3 Ls The equ[Ly in lh~ earnings of unconsobdated subsidlades (excludinq the French ~uheldiary~ amounted to $1,275,587 and $i,3G8,810 1or ]949 and ]948, respeciively. Undez the pzovisions of the ~nden~ur8 J'elctthlg to the TwenLy Year 3% Debent%u'es, due Jc~nuazy I, 1668, cash di~ndends declared on common s~ocks a~d payments made in puzchaslng shares of any class o~ the Company's stoc/~ sub~equenl to D~'ce~th~r ~I, I~7, ~.uq~y ~o~ ~x~ced the ~5~eg~%~ of $~55~(~Q,~(] ~n<~ c~u~l~ed net income eazn~d suheequem Io D~cen~er 31, ]647. less divldends paid on pre- fen'ed ~tock. At Decelnber ~I, i~49, ~pp~ox~m~imly 556,500.00~ o1 earned ~uq~lu~ w~s free of %his res~rlcdon. The applicable net asset~ of the British subsidiary, a~ shown by its un~tud~ted fLuanci~l statements (trans~a[ed into do]I0xs a:t aplxOpr~ofe ra~es o~ exchanq~ an-lounged to $SA68,112 c~ Decembe~ 31, 1946. A~ ~ resul~ of devalualion of ~he Bril[sh c~rrenc~_ the United ~at~s dollar squ~vlilen~ of Ihe net ~sse~ of th~s s~/b- sich~ry at December 31, 1~4~ wc~s $1,669,6~5 lc~s th~u~ it would hc~ve been if no devaluation h~d occuned. ~exclud~ug the ~et as~et~ of Lhe ~r~nch subsidiary, ~he inves~me~ ~n which amount~ to $46,636~ ~moun~ed to $1~,143,897, including intangibl~ assets of $6,273,8D~ at Dec~b~l 31, 1949. Three per cenl debentures outstanding aE Deeon*ber 31, 1949 comprise: ~in~ip~l Amo~n~ ~%edeema~e ~d~emable a~1~ v~Ithin oae F~ar[~ Decembe[ 31, i~50 Twenty y~ar, due April 15, 1962 ...... $3,5G7,000 $ 74,164,~00 Twenty year, due January i, 1968 ....... 3,060,000 69,600,000 Twenty-five year, due October 15, 1969 • 6,127,060 8~,440,00D S~,694,000 $6~5,544,060 • Estimated principal csnount ~o be ~deemed~ through ~inking ~und opera dons a[ pr~0e~ as provided by the indentures. Capital s~ock a£ Decen~er 31, 1949 comprises: In Company*s At~hollzed I~s~edd Treasury Prefer'red .... • ..................... 540,106 ~2~,9~7 N(me C~mmon ....................... 8,000,6D0 ~.472,138 63,713 IO

IgEPOIgT OF INDEPE.N|JENT CE|gTIF|]ED I~UBLIC ACCOUNT~INT$ The JPresldent, the Board of Directors and S(ockholclers of ill Fifth Avenue, We have examined the consolidat~ ba~nce ~hee~ of T~E d~-~J~IGAN TOnACCO COI~P~IgT as of I)ecenlbsr 3], 1~4~, ~d the ~'~c~t~ ¢o~,¢~]~Ited ~tclt~ent o~ incOIno c~nc~ e~:n~d slirp]u~ ~or L~ yc~c~r then ~n~ed. The ~in~n¢i~i stcv[en0.C~nl~ of /~ne~/c~ Ciqarette and Ci~r Company, a c~naolidated sub~di~¥, w~re ~xar~i~ed ~y other" ind~]pe~:~ont c~rt~ied p~ii~ ctcc0untan~. Our ~xciI~'a~c~llor~ wcJ~ ~¢lde ~¢1 ¢~c~oidc~y~e ~vi~h ~¢lliy ¢~c c~pt~d audit~n~ ~t~mdcc:d~, crnd ~zccordin~I~ i~clud~d s~ch t~t~ Qgarette and Cigar Company) and a~ch other auditing pr¢~ c~r~ ~ we ~o~rleze~ alec~cl~r in 'L~e ~ircw~hcrIl~, We ~epor~s of o~r independent cer~i/~d p~bIic ~¢c:~unt~n~, the crnd ec~n~d sv~:2]us pre~en~ fa~Iy the consolidc;tl~d position o~ therein a~ of December 31, 1949 and 1948 and the c~nst~li~ated with ~n~raIly ~ccep~ed a¢counti~q p~nclp~es lIppllod on rz FebrUary K I950. 1|

1949 OPERATIONS AT A GLANCE ~FROM D~VIDENDS ~ l~i~ FOR REVEN

CONSOLIDATED STATEMENTS OF INCOME " ..... ~-~'~- ~'~J~'~ FoR YEARS ENDED r~CEMBER 31 " " ..... (I. T~o.~ands) 1949 :1q)48 1947 1946 1945 NET SALES .................................... $858,390 $873,467 $318,63I $764,107 $357,557 Ccet of stiles ......................... 775,721 794,I27 707,37~ 709,403 014,594 14 OPEHATING PROFIT ........ 23,278 79,340 62,355 54,764 42.963 Add: Other income, less other ex- penses ........................................... Deduct Interest, discount and pr~ mi%lm ...................................... Income before income taxes ...... 74,327 Deduct: Income taxes ........ 30,361 43,966 Add: PAor years' tax adjustments, net .............. .' ....................................... 1,709 82 1OO* 685 344 1,107 83,337 73,240 62,940 53,108 44,070 3,010 8,716 7,356 6.812 8,862 7(],524 55,534 48,296 37,235 28,352 22,445 19,537 17,945 42,172 33,139 28,759 19,253 ],740 700 1,127 434 NET INCO~E for the year DIVIDENDS PAID: Pre4erred .................................. $ 3,152 $ 8,162 $ 3,182 $ 3,162 $ 3,152 Common ............................................ , 21,514 25 189 17,704 14,557 14,387 $ 24,576 $ 23,331 $ 20,556 3 17,725 $ 17,728 Pc~rtion of net income invesLed in assets used in the bu sine.~ and to provide for debanture ~izddng fund ~ .................................... * D~ductlo~, / .....

" .... CONSOLIDATED• BALANCE SHEETS .... '~ ASSET5 : ~ Cash and government tax notes ..... Account~ receivable .......................... Inventories ............................ Other cun'ent assets ............................ Total cxurent assets .............. ~]n ~Lm ands) 1949 1948 19*$7 1946 194~ $ ]7,949 $ I8.176 $ 19,505 $ 17,921 $ 26,304 33,108 30,548 35.130 27,919 20,328 031,050 514,958 483,133 407,014 304,453 ].127 20I 104 708 877 083,702 587,883 537,872 403A62 387,992 Inves'ffllenLs ..................................... Other receivables ............................ Plant and ec~ipment net ................ Prepaid expenses, ete ....................... Brands, trade-marks, etc ................... Total assets .......................... I4,451 I4,918 14,920 16,902 17,478 5,442 4.001 3,547 2,291 2,258 45,007 41,950 32,847 22,003 18,094 3,345 3,515 3,40I 3,492 2,988 54,099 04,009 54,099 54.090 54,099 ~t $646,754 Notes payable ............................. $ 80,000 $ 72,900 $I22,500 $ 85,900 $ 37,900 AccoLuLts payable ............ 4,265 6,017 9,043 11,552 5,819 Accrued taxes ...... 34,906 34,949 30,328 27,989 26*403 Funded debt due within one year ...... 9,694 9,2I 1 6,057 "6,145 Other current I/abilities ...................... 4,067 3,710 4,649 4,108 3,936 Total current liabilities 132,932 128,387 ]72,577 134,774 73,100 22~,375 236,089 170,608 ]76,929 I83,074 -- -- 105 I05 565 784 715 799 955 210,079 210,079 : 210,079 17],997 171,297 141,362 120,363 99,782 86,803 73,098 7,007* 7,007* 7,007* 18,I78~ 18,178" $sse.eTs $040,70 Funded debt .................................. Deferred income IVY]noddy int e~rest .......................... Capital .................................... Earned su~i=lus ................................. Tze~ury stock ................. Total ]iab~iles and capital • Deduclion. .!,

AMERICAN TOBACCO COMPANY

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