The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-02-25
FURTHER
DETAILS IN
TOBACCO
C[)MB|NE:

t-t{ ttifutitIed trcds.l
Eenineiop, D. G.. F'eb. 25 Her
bert Knox Snlth cohlmi8sloner o:
ovpfau4ns, aJlay made public Sub
divisions Z and II. OF Part Of hls
renor, On the tobacco Industry. The,
deal ~ith Tie prevent organization
oi Che icpecc6 noniblnatsOa 80 GATED
its degrc ~ cpunpl "a That ipduelgy
siid Tie defelopmeht tf tAa control
These diHsicns OF he report fe
shifting from q thorough investigation
into Che. business Operations oil tht
toeaeco combination contain an elah
trase diecusslcn of ihe methc1a by
which The mhnufaciufe % tobacco.
except clgags, has come under the
control uf comparatively few cap.
ltallsis Commissioner smith SAYS.
In The tobacco combination are
Thd american Tobacco company and
lts ihrae great subsidiary camhma.
lions Thc Ametlcan 4nun company.
The American Cigar company ana me
British American company besides ~
other subsidiary concerns doing bust.
ness ln the United States Porto Rico
and Cuba The combination repre-
sents tolal netcepltnllsRlon 0l oq
ef S3l6,0O0000 A very small sroup
Of ten stocsholders controls go per
cent Ci me outstanding voting stock
o. The American Tobacco company,
through which company tho entire.
Comhinalion % controlled
The ust OF subsidiary companies
conir,llsd including over twenty
hitherto secretly controlled, eO-caled
bogus Independent concerns rs giy.
ia IN the report Il Is shown also that
iEe combination a practically tho only
important eyp.rter os tobacco manr.
iactures from ,hs country. Aston.
fishing figures arc glen in respect
to the development OF the c0mbina
tion. n 1891 II controlled SO per
cent Of the business oi cigarette man.
ufacture, and this proportion practl
call5 ia maintained today ln cigars
It's output increased from e Der cent
Of the husiness IN lSe1 toll 7in nef
cent IN 5000: while ia manufactured
tobacco gchcwlng, smokine ine cus
and ennH) Sic combination output
Increased from nar cent 0f the ia-
tal In 1891 10 77 pel cent N 1906,
F'lnallY, In 1906 the combination con.
trnllad of these separate prOiucls re.
spneliveIy plug S2 per cent smoking
q per cent, nnc cut 81 Der cent ana
snaa a6 pcr cont ID the year 1906
lie combination used IN the manliar
tnfe f lis various products nonrly
aa0.gio00o mounds Of leaf lplacco
IAN isM or ihe abaarnli0n oi com
netting aania, says Commissioners
Smith. "and ag ihe ahanges through
combination within lae last decade
may be led tom ha fact thal ID
fsa7 ihe combination had on plants |
each nfs uciNu over $4,000 paWds !
ai manufactured .uhaeeo ef sunn per
tear. while ihoro vafe 2i8 lndepand [
emf plants af TIC same elass - 1905 /
On the other haud the combination /
had Is plants o. this elass tne inle' +
pendent manufacturers 80 Especially I
oensnounus has naen ihe absorption
Of large plants. ~ 1882 the combna j
tlun HNti y piNiltef eitth tAHi"Ntfh y T
al 900 zoo pounds q lhcse 2fcancta /
her ycaf, whiie 4ls competitors haa /
III such plants la ie0e Che comhlna
lion nat 81 plants j this glze ana +
independent concerts only ib
eDesphe lhe combhsllion's enor' /
nous expenditures Tor advertising /
ana fl schemes and despite frequent |
price auktlng hy neana q iis aoeaa I
ea lghBlng brands there has
been. IN several bfanehes of lhe in' I
Fnetrg. Il cuaiant tendency fcr com
petitors 10 gain buslaess morn rap
idly that The combination and mus
70 reduce rs proportion q che out
put. This Tendency Las been overs
eare only ny che continued hnylns I
up al competitive seneeina
W~nker nesFns nave lesn
virtually driven oGi d hnslness af
) ed 10 sem out ta lhe combination I
either ~ rsasca et The direct con-
petition II DE lalief q IS an lndi-