The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-03-02
LETTER OF SUBMIITAL.
Department Of Commerce and Labor,
Bureau of Corporations,
Washington, Feb. %,


Washington, Feb. 25, 1909.
Sir: I have the honor to submit
herewith Subdivisions II and III of
Part of the report on the tobacco in
dustry. These deal with the present
organization of the Tobacco COmpin-
alton, SO called, it's degree of control
in that industry. and the growth of
that control.
Subsequent reports will deal with
prices and profits n with competi-
tive methods.
In the Tobacco Combinations are
The American Tobacco Company and
its three great subsidiary combina-
tons, The American Snuff Company,
Th@ American Cigar Company and
The British-Araerican Company, be-
sides 50 other subsidiary concerns do
ing business in the United States,
Porto Rico n Cuba. The combina-
ton represents {. total net capitaliza-
ton Excluding in~tercorporate hold
ings) of over $316, 600, 900. A very
small group OF 10 stockholders con-
trolls 60 per cent OF the outstanding
voting stock of The American Tobacco
Company, through which company the
entire Combination is controlled.
The report sets forth the lists Of sub
sidiary companies controlled, includ-
ing over twenty hitherto secretly con-
trolled, so-called bogus independent
concerns It shows the internal diff
ferentiation in manufacture and sell
i 30 - ~ IN liz Y
latiOnS to the eXpOrt and foreign to-
bacco business. The mbinatiO is
practically the only important ex-
porter Of tobacco manufactures from
this country.
From the time Of it's origin. in 1890.
to the end of 1905. the growth of the
Combinations prop~Ortionate ontrol
OF the plug, smoking, and snuff
branches of the industry has as 2
whole been steady and great. In cigar
cite manufacture it already controlled
~ per cent of the business in 1891
and this proportion has since beer
practically maintained (S2.3 per cent
IN 1860. In cigars it's outpu in
creased from 4 Der cent of the bust
ness in 1897 to LAT per cent in 1905
In manufactured tobacco (chewing
. smoking, fine cut, and snuff the Com.
bination's output increased from +
!, per cent Of the total in 1889 to II pc
+ cent IN 1906. It's production in 1889
!, was 19.199,924 pounds out of q tOta
! Of 27O,529,326 pounds. and in 1906
oOb,Oo",641 yOundS out Of a total O
E "94,216,429 pounds. Finally, in 1906
the Combination controlled Of thes
separate products, respectively, blu
80 per cent, smoking II per cent I'm,
= cut 81 per cent. and snuff 90 ner cent
Inc extent Of the operations of tn,
CoilDlnatlOn as q whole is shown h,
the tact that in 1906 it used in tn,
: manufacture Of its various product
- ~ 1VV,VVU,OUU pounds OF leaf IN
! baccO. ~
), An IDEA of the absorption Of com
pet.ng plants and of the change
tnrough combination within the las
decade may be had from the fact tho
IN 1897 the Combination had 10 plants
: each over $4,000 pounds q
MANUFACTURING tobacco or snuff De
# year Whiie there were 243 Independent
IS plants OF the same class. In 100
~ on other hand. the Combinatio
hau 40 plants Of this class and inde
pehuent manufacturers lao. Especia
~ conspicuous has been the absorptio
pi tne large plants. In 1897 the Com
bination had s plants, each nrod1c;n
i over 100000 pounds of these nrc
~ nuets per year. while it's competitor
- had 40 such plants. In 1906 the Con-
~ olnation had 50 plants of this sir.
'A' independent concerns only L