The western sentinel. [volume] (Winston-Salem, N.C.) 1887-1926, 1895-11-07
TOBACCO TRUSTS FIGHT.
WILL THE TRADE BE MONOPO-
LIED BY THE COMPANY?

! A Tobacco Man Expresses the Opin.
ion That All of the Plug Men will
Soon be NJ Manufacturing Cigar
ettes-Price Paid Butler rCo.
The purchase of the James 6. But
ler 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 Tobacco Company, and
sCme of the most absurd predictions
are being made. But the large plug
manufacturers do not seem to regard
| the purchase as a master stroke, and
do not seem in any way influenced by
the purchase, says the Western To-
bacco Journal.
Some believe that the Butler COM
pany stockholders made very fortu-
nate sale, and others say that the
American company had to have an
other Western plant, because Of the
enormous accumulation 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 much of an ad-
vance in the near future in this very
cheap brand.
While the trust has lost many hun
dreds Of thousands of dollars by the
sale OF this brand, they may be in
hopes of recouping in part by ma
terail advence in the near future.
In the meanwhile the two large st.
Louis firms are going ahead with their
preparations for putting cigarettes on
the market, and one OF the firms ex-
pect to place their brands for sale
about November 1st, and the other
other firm not much later, and they
will push these goods with the same
system and fervor that has character
lied their work in the plug field.
WHAT WILL THE PLUG MEN DO?
One who is in d position to know
What he says in this connection, is
authority for the statement that be-
fore very long all the large plug man.
ufacturers will be inufacturing
cigarettes. While it may take some
time for most of them to make ar
raDgements to this end, he expects it
to be quite general among the large
tobacco manufacturers before the end
Of the next year, and he can not see
where the American Tobacco Com
pany profits by giving up practical
monopoly of the cigarette business
with large profits, TO invade d field
with profits at the best not one fifth
of what they have been enjoying 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 satisfied that cigarette manufacture
ing will never in the future be the
monopoly that it mas been in the
past.
The American Tobacco Company
has succeeded well so far, but
it is doubtful they anticipated the
prompt retaliation Of the plug manu-
facturers as to cigarette manufacture,
and so early break in the monopoly
of cigarette machines as has been
occasioned by couple 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.
6. Butler Tobacco Company's plant,
trade marks, etc at St. Louis, Mo-,
was 100000, of which $780, 900 was in
cash and 5000, 900 in stock, with Col
Jas. 6. Butler retained as manager at
| handsome salary. This is regarded
generally as very good price for the
plant and business, although the fac
| tory and machinery was one of the
most modern in the country, and the
brands of the firm couple OF years
| ago had very large sale, though it is
| said within the past year the output
of the firm declined very largely.