Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-02-07
TOBACCO FIGHT ENDED.
Union Company Outbtds America"
for Liscett e. Myers Plant.

for Liagett & Myers Plant.
New York YHeraId-6th)
Altar many rumors concerning the fight
between the American Tobacco Company
and the Union Tobacco Company to OBJ
tain control of the immense Liggett d
MYERS company, Of ST. Louis, the Herald
"a I'm a position this morning to announce
on the best authority that the Union
company has won and now controls the
greatest plug output OF the country.
Thus the American Tobacco Company
the Tobacco Trust-receives defeat Inc
deal was completed several days ago In
- Louis. after negotiations which were
long and which were conducted by men
of rare ability on both sides.
The purchase Of the biggett q Myers
Company IS the most important event
which has occurred recently in the to-
bacco war; and the victors do not hest
tate TO say that the deal has given them
control of the situation. They say that
the St. Louis company was Of such strate-
gic value that II was of the utmost
importance, and that now the Union To-
bacco Company, which is only about six
months old, his fought the trust 10 a
standstill.
PLUG MEN RETALIATED.
The Union company. in the beginning.
was started 10 manufacture cigarettes.
The American Tobacco men went into the
plug-tobacco business, and the plug-to-
bacco men retailated by beginning to
make cigarettes. The trust, finding, II Is
said, that it was losing money in its plug
tobacco venture, decided to obtain control
Of all Of the plug business.
To this end Il began to buy up the small
plug companies throughout the country,
aiming. IL was supposed, TO obtain a po-
sitiOn which would enable it to force the
Liggett & Myers Company TO terms. The
Trust started the Continental Tobacco
Company to conduct its plug tobacco in
terests. but the big ST. Louis company,
instead of weakening prospered in the
fight and continued to have an annual
output Of 3OOO0,OcJ pounds.
The ST. Louis company, which was
founded in 1892. and whose buildings oc-
cupy a space nearly three-quarters Of
mile long. increased its output during
the struggle. and its profits. which have
been as much as $l,OOOOO year, were
practically unaffected
Fighting the trust on all lines. in cigar
cites. smoking tobacco. and plug tobacco
as well, It became Of supreme importance
that the Union Company should secure
control Of the Liggett d Myers business
Now it has done 50. Il recently acquired
the Blackwell Durham tobacco, a smok-
ing brand. and IL IS now announced that
il is 10 place a new cigarette on the mar
ket for which all sorts Of merits are
claimed
HACKERS OF UNION COMPANY.
Among the men who are backing the
Union Company are William G. Whitney,
General Samuel Thomas Anthony y.
Brady. Thomas f. Ryan, p. A Il. Wide
ner. George Elkins. Frank Tlford. z. A.
c. Smith. and many other merchants and
fnanciers OF note. Some Of these men. IL
is known, are interested in the American
Indies Company and other cuban enter
prises and have strong hand upon the
raw material required by their tobacco
company.
I was unable 20 learn yesterday az what
price the Union Company obtained the
Liggett x Myers business. II is note
worthy. however. that q s. Louis dis
patch 10 the Herald on December 18th
last quoted Colonel 81. &. Wetmore. OF
the ST. Louis company as denying mat
a sale had been concluded for Sl2 10000
lie had said few days earlier that his
company was not for sale; that it 'ould
not be bought for less than S2o0OOOoO. and
that he knew of no one who would pay
SO much.
/ was told yesterday however by
man who knew thu exact price and who
declined 10 reveal # that the Union COM
pany's bargain was so good that IL meant
an immediate dividend. This assertion
was based upon a knowledge of the pur-
chase price and the annual profits Of the
Iiggett < Myers plant President NJ. c.
Wetmore and Nice-President Charles Hal |
lowell. Of the Liggett X Myers Com |
pany. will be retained by the Union COM |
pany. william III. Butler, president OF .
the Union. H. the man who made and /
marketed a cigarette which is said 10
have earned 100000 a year for the trust |
when he was i'm its employ.
FIGHT WILL STILL GO on.
The trust is said 10 have been attempt |
ing 10 buy out the Lisgett ~ Myers Com |
uany for three years. having long been /
mindful of its Importance 20 any corpora /
ton which aimed TO occupy a controlling /
position I'm the tobacco world. Men high |
in the trust / was informed yesterday, |
did not learn until Saturday of the COM |
p,etion Of the st. Louis purchase by their |
rivals. The tobacco fight will still 90 on, |
and il remains 10 be seen what will fol- /
low the Union companys assertion that |
il now has the upper hand in point Of |
talent and in plug and !
smoking tobacco. The ST. Louis company |
can be used 20 great advantage by the |
purchasers. il is asserted In pushing and |
their smoking tobacco and |
as well as the plug output.
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