The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-02-19
SHOWS UP
TOBACCO
COMBINE:

NY HSoutidlfu iiNA3,i
Washington Fen 50 .r fopos'
transmitted 10 pro..ilent Roosevelt 10,
day. Herbofi Knox smith esmmIlslo-.
q q oorpo atiuHs presents aomc
hlghlg interesting history u ihe ar'
ganigation ef tE "i's1are9 eombln
alton, which, In tie magnitude 1i ~
business operations ~ 0ue qf o.,
grt test rgna1ation1 IN Ameti,l, lht
report IS result in part 3f an a.
lonsltc Investigation Into the lsDacco
lnduar ry made Dg che bureau c cor
pa aucGs subsequent reports 4ll
oaal with the eualful Of the tobacco
industry, with prices and prcIits aue
Win competitive methods
VI days lalcgi sels i1ilA lhe rise pi
ann of thc great combination Of tAe
couhuy IA hls letter af fansmitiai,
c0mmss.unef smith ssys thst is
sa.s With le hiHCfy from the
signipciat 81 lls afgnllSaslan pf tae
melt lohaecg combination siaiuhe
IN 1851 as ihp hmorican Tobacco COM
eaa2 e mAlplacHrer "a cigarettes.
with 4 capital oi ss5egueD1 lhe c9H
binaiitu h4s s3w d rai at1at9n
texoladrg inler,en1tany haeihssl o.
Saig.s4U.s9i III hgs ahs0lheh ahqut
$50 felirulc concerns aGd nog con'
tr0ls SUBSTANTIALLY foHisHIlhs Of isc
output ct each lmp,rnrt klna 9i ~
nlcco manufactured Nv lle Lnliel
staieh. al,h lhe exception 81 c'gars
lis hls'efy %@isD presenta import
am fualure3 O stock ntinlpulailol,
Tine financial Intersections cnnlerins
around Inc gieanlsailJn af The Con ol'
idGieI Tobacco Company In 1871 are
especially nDiswSfihy Al thai ilAe
small body ol directors ard aioek
81 the combination believe I
that ne nIDats Of the e4nHli! ton
eould be greatly iTcfeased IA he I'M
melia,c future. They organized sic'
Consolidated iuhanen company and ui
Tered ts handa III exchange fee ihp.
comm ii giaek u he American and me
in e4ler laua % soeuit
l1f themselves m0sl 81 ilic incfesasi
pfosas about 90 aeefHe lhe PROM y
aecl0ing in ihe oammUn stock II ltr|
Ameaeaa dud iha Continental fl~fl
|Ha ACQUISITION tf the o. ia1lAalef,
Increased HcaHy and iha Hnalhhad
81 mpu rahirallns tho Aef nAnei
So small Ii facl 'ha $685.
ui Them held d mai0.ily nf iiH m1rt
ana ihtg controlled lhe oniite cnill
hmsilun necnulp entitled t8 mlliiana
Il dollars Which, naa II not haan .fri
iha paasnlllated Transaction. would
have gale 10 lhs original eaalmoa
siaux holders
Cummlysinler smith 1913 hat 1ln
u ahoAl bt added ihal llllal
0ler cI exchange was inade With 40
of lhe fact that lhai biiar
came from the ptlncirl ileffa ahd
directors of ihe lwU eamMnIe8,8 tfisl
te adds.
"The conduct of Ills gEulip 1T men
rs a proper subject for criticism, huw.
aver because they cluld totesee much
etipr thaa outside st4thholdefs lhe
Hrge profits ahgat % 4scrue The
occupied nduelarys relation 20 the uui
iMe Stockholders ana shanld have
here With thein equally tho spccial
acquired b9 thee POSITION.
The report diseusses at length lheI
by which The tobacco combin'
tion has been developed including
Che begun Independent c9ncerna' -
be eamblfation l POINTS cut clearly
sat lhe leadIng purpose Of ile m o
who have controlled II has bsan i1l
L dominate the tobacco iadustry 1feI
report contains nor anlT tho detail
q tie inantlal operations ol she com
~ ts rise ~ also neny iil
sldeighss a fbe sehrmai
emplose Is make ihe ocmbnaian p =
nm unl b ihc tobafn9 irdieteY