The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1904-10-07

The proposed merger of all interests
in the big tobacco trust under a new
title to be known as the American To
bacco Co. is meeting with opposition on
the part of some of the bondholders and
the courts have been appealed to for
restraining order to prevent its compile
ton. The objecting bondholders allege
in their bill of complaint that the Con-
solidated Tobacco Co. incurred large
floating debt, unsecured, in the endeavor
to establish practical monopoly of the
tobacco business, and that the proposed
merger is in effect an effort to save the
Consolidated Co. from financial disaster.
It is also charged that if the consolida-
tion is allowed to proceed the per cent.
bonds of the merged corporation would
not be secured by any lein or charge up
on the property or income Of the cor
parations. However, the stockholders
meeting of the constituent companies
was held September Both as scheduled
and the proposed merger was authorized,
but awaits the action of the court before
being carried out. The plan submitted
proposes a consolidation of the three
concerns, with a total bond and stock
liability of about $3.50, 100000 something
like S110,0OO,O00 less than the aggregate
of that Of the three companies at pres
ent. 1t is proposed that all of the pres
ent Consolidated Tobacco Co. collateral
trust bonds shall be withdrawn and that
the only bonds to be left outstanding
shall be the per cent. and per cent.
direct obligations of the new company.
Manufacturing circles have been con
siderably perturbed over the import
stamp ruling of the treasury department,
the matter being carried to the president
for the final disposition. The decision
arrived at is something of compromise
between the importers and the trust on
one side and the domestic manufacturers
of clear Havana goods. The conspicu-
BUSINESS of the stamp is done away with
as far as it's length and encircling the
box is concerned. In this respect the
and gained signal advance. On the
other hand, the distinguishing color of
the import stamp is retained and though
in the future it will shine only on the
bottom of the box, it will do so opposite
the internal revenue stamp instead of
forming continuation of the latter, as
designed by Assistant Secretary Arm
strong. This evidently was concession
to the so-called "trust." Nevertheless,
the independent trade has cause to con-
gratulate itself on its achievement. 1t
has succeeded for the first time to hold
it's own in an encounter with its gigantic
opponent, held to be invincible, and
furthermore, which is probably of great
er advantage to it's future, it has sue
ceeded in arousing and Interesting pub
lie opinion throughout the United States
in its own peculiar policies.
**s
Spain is endeavoring to make herself
Independent OF Cuba in regard to to-
bacco supplies. Efforts are being CEN
tered on tobacco culture in the Canary
islands, which are possessions of Spain.
The latter government has compelled it's
tobacco reggie to contract 100000 pounds
of tobacco from Canary island farmers
annually for the next four years. Sup
plies will be purchased direct from grow
ers, the price being the same as the rul-
ing values for prime Havana. AS largo
per cent of the Canary island farmers
were at one time in Cuba and are prac-
tical tobacco growers. they know how to