The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-30
MERGER IN SMOKES.
The Cigar Trust Wants a Combina-
ton of Retailers.
BIG STOCK COMPANY PROTECTED
Local Dealers Say They Might Sell
Out, hut Don't Like
to Merge.

If plans of the American Cigar COM
pany, known as the cigar trust, are sue
cessful, the merger iGea will be applied
to the retail cigar traffic, and practically
a revolution in that branch of trade will
be the result. The trust has "stubbed It's
toe" in Chicago before extending it's plans
to northwestern cities, and dealers in this
section of the country are awaiting It's
next move with interest The trusts
plan is to organize the principal dealers
in every city of Importance in the coun-
try into stock company, one OF the con-
ditions being that the stores Included
handle none but trust cigars. Minneapo-
lis cigar retailers generally say they
might be willing to sell out to the trust
but would not care to go into any coop
erative scheme which made them trust
agents and which, in their opinion, would
sooner or later place them at the mercy
of the big combine.
The American Cigar company has forty
factories and is directly controlled by the
big tobacco combine. During the past
year it has aggressively campaigned the
market with several leading brands. Old
and honored customs in the cigar trade
have been demolished and the shortest
possible cut made to get the brands in
the hands of wholesale and retail dealers
Quantities of standard brands of tobacco
manufactured by the combine have been
given away with stated quantities Of
cigars. This has been a distasteful pro-
ceeding to the jobber and far from agree
able to leading retailers who have worked
up trade in certain brands along the Old
lines.
But orders for high class cigars have
not been coming fast enough to suit the
trust President Cobb, of the cigar com
pany, finally formulated plan for en-
oe no ntoj
provides for the organization of the lead
ing dealers in each important center into
stock company, concessions in price 10
be made to them by the trust, and they
to handle only trust goods. President
Cobb has been hard at work on the prop
osition in Chicago, but tailed to get the
necessary number Of big retailers in line.
The trust is reported to nave Represented
that it now controls the output of those
districts in Cuba where the finest grades
of tobacco are grown, and the time has
come for the leading retailers to come in
out sof the wet if they want to continue
| in business. The retailers looked upon
| this as bluff. and most OF them
| turned the proposition down. 1t is IN
derstood that the trust intends to Try
| the plan again in the west within snort
! time.
Minneapolis retailers have been Watch-
ing the progress Of 1.-The trusts plans Win
much interest. There is little sentiment
in it's favor among the leading dealers
Some of them are willing to sell out tc
the trust but do not care to place tnem=
selves under obligations to the combine
and continue in the business. Chicago re-
ports say that the trust representatives
threatened to start stores of their own Il
heir present plans failed. This does moi
alarm the local men. who say tnat tne
| cigar business is free for all and demoral-
ization in the trade cannot be any worse
| than at present. a