Stockholders on Bonuses

Last month Corporation Heckler Lewis D. Gilbert, who holds 80 of the 3,250,000 voting shares of American Tobacco Co. stock, moved that American's famously generous bonus to officers should be cut. President George Washington Hill, whose bonus was $300,300 for 1939 (plus a $120,000 salary) threatened to resign if the Gilbert resolution passed. (TIME, March 11). Last week, of American's 15,000 voting stockholders, 91 marched into a small, stuffy room in Jersey City for the annual meeting, soon veiled it with smoke from free Lucky Strikes. Absent were holders of 2,174,671 votes whose proxies were held by President Hill's management. Absent were holders of 2,500 votes whose proxies were held by Gadfly Gilbert. Absent, as always, was raucous, hunch-playing, profit-making George Washington Hill.

Up rose Stockholder Gilbert to argue his bonus motion. Up rose a dozen others, blew off steam, demanded Mr. Hill's presence, demanded his resignation. They got cool overrulings from the chairman, brilliant, suave Vice President Paul M. Hahn. Asked why Mr. Hill was absent, Mr. Hahn replied that he had better things to do. Not quite getting it, one lady stockholder rose to say she was sorry, hoped that next year Mr. Hill would "know in time." Votewise, Mr. Hill's absence made little difference. By the time all proxies were counted, the Gilbert resolution was defeated 2,193,481-10-74,571. Re-elected also was the board of directors, including Mr. Hill, his son and Mr. Hahn. Said Mr. Hill, who had been in his Manhattan office that day: "Very pleasing to me." Said Mr. Gilbert: "I will keep on trying."

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