Cigar Stores

Customers stepping in to the red-fronted United Cigar stores for a package of cigarets last week noted no change in the usual displays. But ticker-tape watchers suspected that something was wrong when nearly 200,000 shares of United Cigar stock were sold between $1.50 and 75-c- a share--most active issue of the day. Their suspicions were correct. United (primarily a holding company) and one of its real estate subsidiaries went into voluntary bankruptcy. Assets of the two concerns were listed at $18,200,000 against liabilities (including "possible") of $23,500,000.

United has 975 cigar stores, 219 drug stores strung from coast to coast. Several years ago control passed from Whelan-Schulte interests to George Kenan and Frederick Kenan Morrow, chairman and vice president of Gold Dust Corp. Though sales have been well maintained, heavy losses piled up in United's huge real estate holdings. At the turn of the year real estate and leaseholds amounted to one-half of its consolidated assets.

This file is automatically generated by a robot program, so reader's discretion is required.