Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1909-02-25
TEN MEN
CON T ROL
TOBACCO
Report Made Public Today
Showing How the Big
Trust Operates.
UNSCRUPUL0US METHODS
How Competition Is Driven
Out and Plants Absorped
by the Concern.
FIGURES SHOW GROWTH
Main Snuff Works of Trust
Are Located at HeImetta
in This County.
FIGURES SHOW GROWTH
spseiaI bg Unlted Press wre.


Washington, Feb. 25:-Ten men abs
solutely control the tobacco and snuh
business of this continent. with the ex-
eeption of the manufacture OF cigars,
and the colossal trust which they man
age has within the last few years throt-
tied almost every yestige OF real com.
petition. They have gained heir hold
on the trade by the unscrun alous use
OF vast sums of~money, by deceivinq
the public, by resorting to all -
of schemes, and by the fercest price
cutting that the commercial world hsA
ever known.
These are, in brief. the conclusions
reached by Herbert Knox Smith Chief
Of the Bureau Of Corporations. the trust
probing end of the Department of Com
meree and Labor. Mr.. Smiths second
installment Of his report on the Tobao-
co Industry was made public today, and
in it he deals with the organization Of
the combination, its degree of control,
its growth, and it's present overtower-
ing position in the trade. In futufa
chapters of his story, be writes the
President, he viii handle the subjects
Tof prices, profits, ard competitive
methods.
The American Tobacco Company and
its three great subsidiary combinations
the American Snuff Company. the
American Cigar Company, and the Brit
ish-American mpany-comprise sons
eighty-two subsidiary concerns in the
United States, Cuba and Porto Rico.
according to the Smith report. Ten
stockholders are alleged to control six
~ percent of the stock OF the mArn-
moth concern, and these are: j B. Duke.
president Of the company; A.e n,
Brady, 0. H. Payne, P. A. B. N-iIfener,
Thomas +. Ryan, B. N Duke, q. II.
Sehley, the brokerage 1rn of Muers u
Sehley, and the estates Of w Z. Nnis-
ney and w. L. Elkins Twentv-efrht
directors own nearly II per eentSof the
stock, but for all practical purposes,
says, the report, the ten names mem
toned dictate the policy of the com.
binstion, which represents a total net
capitalization Of S316,00O,00O Accord.
ling TO the report, the concern contrcle
So per cent Of the cigarette business Of
the country, II per cent of the manu-
fsctured tobacco Chewing, smoking
tne-cut and snuff and IA per cent Of
the cigars. In 1905 the American To.
baceo used in its manufacturing plants
100000, 900 pounds of leaf tobacco.
50 An idea Of the absorption of com.
peting plants and of the changes
through combination within the last de.
csde may be had, SAYS Mr. Smith,
= from the fact that in 1897 the conn
bination had ten plants each producing
over $4,000 pounds of tobacco OF snuh
per year, while there were 243 inds<
pendent plants of the same type In
1905, on the other hand. the combina,
tion had forty-fve plants of this elass
and independent manufacturers 40.
Especially conspicuous has been the
absorption of large plants. In 1897 the
combination had eight plants each prok
dueing over 1000 900 pounds Of these
products per year, while j. -seofnpetitors
had forty-six such p,11rrs. In 1906 the
combination had thirty-four plants Of
this size and the independent concerna
only seventeen.
"The Combination, continues this
report, has superior advantage ovet
competitors, from the great size Of its
plants and from the control Of moro
efficient machinery, but neverthelexs
great many independent concerns havs
water and continue active competition
However, he adds, many weaker cons
Germs have been virtually driven out Of
business or forced to sell out to the
combination either by reason of the
direct competition of the latter or as
an indirect result of the vigorous coms
petition between the combination and
larger independent concerns.