The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-11-01
FIGHTING THE TRUST
THE PLUG ANUFACTURERS
MAY SOON BE MAKING
CIGA RETTES.
WAR T0THE DEATH ON BOTH SIDES

WAR TO THE DEATH ON BOTH SIDES
Aseeker Large Plug Tobacco Factory
&obbled UP by the American Tobac~
CO Company--PredictiOn that the
Txxst will Soon MOnOpolize the
Tobacco Trade in this COuntry--Plug
Men will Retaliate by Making Cigar
ettes--Price Paid for Butler Plant.
The purchase of the James G.. Butler
Tobacco Company, of st. Louis, by the
American Tobacco Company, has set the
most nervous of the trade to believing
that the whole tobacco trade will soon
be monopolized by the American Tobac
co Company, and some of the most ab-
surd predictions are being made. But
the large plug manufacturers do not
seem to regard the purchase as master
stroke. and do not seem in any way in
ffuenced by the purchase, says the West
EN- Tobacco Journal.
Some believe that the Butler COM
paRy stockholders made very fortunate
sale, and Others say that the American
company had to have another Western
plant. because of the enormous accum-
ulation of orders for their cheap plug,
no orders for which will now be received
at present prices: orders received are
subject to the price prevailing at the
time of shipping the order, and this
smacks mucn Of an advance in the near
future in this very cheap brand.
While the trust has lost many hum
dreds of thousands Of dollars by the
sale Of this brand, they may be in hopes
of recouping in part by material adj
vance in the near future.
In the meanwhile the two large st.
Louis firms are going ahead with their
preparations for putting cigaretts on the
market. and one ofsthe firms expect to
place their brands for sale about Novem-
Der Ist. and the other firm not much
later, and they viii push these goods
with the same system and ferVor that
has characterized their work in the plug
field.
What viii the Plug Men Do!
One who is in position to know what
he says in this connection is authority
for the statement that before very long
all the large plug manufacturers will be
manufacturing cigarettes. While 1t may
take some time for most of them to make
arrangements to this end, he expects it
to be gate general among the large to-
bacco manufacturers before the end of
the next year, and he cannot see where
the American Tobacco Company profits
by giving up practical monopoly of the
cigares be business, with large profits, to
invade field with profits at the best not
one fifth of what they have been enjoy
ing In the cigarette business, and which
now will be much less, while at the
same time their profits on cigarettes will
be but nominal as compared with profits
in the past, for this gentleman is salis-
fed that cigarette manufacturing will
never in the future be the monopoly that
it has been in the past
The American Tobacco Company has
succeeded well so far, but it is doubtful
if they anticipated the prompt retalia
ton of the plug manufacturers as to
cigarette manufacture, and so early a
break in the monopoly of cigarette ma
chimes as has been occasioned by cou-
pie of decisions by the United States
Courts in the past few months.
Price Paid for Butler Plant.
The Western Tobacco Journal learns
that the price the American Tobacco
Company paid for the Jas. G.. Butler
Tobacco Company's plant, trade mark,
etc, at st. Louis, No, was $500, 900,
Of which 800, 900 was in cash and $500,
900 in stock, with Col. Jas. G. Butler
retained as manager at handsome sal
airy. This is regarded generally as a
very good price for the plant and bust
ness, although the factory and machin-
cry was one of the most modern in the
soxntry, and the brands of the firm q
coaple OF years ago had very large
sale, though it is said within the past
year the output of the firm declined very
largely.