Omaha daily bee., 1903-04-03
GROWTH or A WEED.
Manufacture and Consumption of To-
baccO in the United states.

Manufacture and Consumption of To-
bRcco in the United states.
Boston Transcript.
When Sir Walter Raleigh introduced to-
bacco in his native country he little
dreamed OF the vast commercial enterprise
for which he was making an opening, When
King James wrote his "Counterblast" he
was antagonizing what to him was a dis
gushing practice, but he had no idea that
the noxious weed was some time to become
a matter of commercial warfare in his own
kingdom in which the subjects of a remote
successor would be worsted. The discussion
Of the Consolidated Tobacco company's ex-
pansion by George Buchanan Fife, in the
March Century. reads like a romance. The
conquest Of the tobacco trade Of the world
by the American trust appears to be COM
plete. Its operations cover every country
except those in which the business is a
government monopoly.
The trust owns 131 factories in nine coun-
tries, with actual property valued at $751;
900, 900, while the aggregate capital involved
is S400. 5000, 900. Thirteen years ago 1t be-
gan it's existence with a capitalization Of
S25, 200, 900. only &c., 900, 900 of which was
paid in. Having conquered America, It
sought new fields, the most promising Of
which seemed to be Great Britain. In Sep
TENDER, 1901, 1t purchased. for a. $50, 900, a
controlling interest in Ogden's, Limited, OF
Liverpool. 1t installed a Virginia expert in
blending, and its business grew to such pro-
portions as to alarm British interests. An
English trust was formed to fight the Amer
lean trust. But 1t did not understand the
subtle methods of its audacious competitor.
1t agreed to divide among it's 4 1000 GUS
toners during the next four years the sum
of $250,000 a year, distributed pro rata, with
other bonuses to be conferred subsequently,
on condition that the retailers boycott the
Americans.
No sooner had this circular been issued
than the American company followed Il
with 10000 kilograms, asking a suspension
Of decision until the retailers heard the
counter proposition, which was to dis
tribute entire net profits and 81, 00O,0 900 a
year, with no boycott. This was too much
for the conservative and cautious English
men, and last year they capitulated on the
terms OF their rivals. Now the trust has
undertaken to establish a citadel in Ger
many, with good prospects Of success. 1t
will have a German name. but will be con-
Quoted on American methods for the profit
Of American shareholders.
Year by year the tentacles of this colossal
concern are reaching out farther and
farther. OF the 29O, 900, 900 pounds of manu-
featured tobacco produced yearly in this
country the trust makes 225, 900, 900, exclu-
sive Of SNUFF. cigars and cigarettes. 1t pro-
duces 1850, 000, 900 cigars, including those
made in Cuba, 5000, 900, 900 cigarettes and
s 1000, 900 pounds Of snuf. 1t manufactures
70 per cent OF all the tinfoil and has plan
tations in Asia Minor for growing ~licorice.
1t has a controlling interest in a brieS
pipe factory and is figuring upon possess
ing itself Of the cigar box trade. The re-
tailers are making loud protests and COM
planning that the trust is trying to drive
them from their business. The trust makes
the most plausible disclaimers, as plausible
as those of the Standard Oil officials t.
similar charges. Yet the former indepena.
ent dealers find themselves gradually forced
to the wall, all the same. To be sure. the
basis Of this vast industry is a habit. II
does not deal with the necessaries of life
like the oil trust or the beef trust, but II
involves far reaching vested interests
nevertheless.