The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-03-02

BUSINESS OF THE TOBACCO
COMBINATION.
The -Four Principal Factors in the
Combination.
The history Of the Tobacco Combln-
alton has made it clear that the
American Tobacco Company has
throughout been the principal factor,
and this is still more true since the
reorganization of 1904. which united
the Consolidated, American, and Con-
tinental companies under the new
corporation with the old name. Amer
lena Tobacco Company. There are
three other corporations still, however,
whose position in the Tobacco Com
bination distinguishes them from the
great majority of the subsidiary COM
panies. These are the American
Snuff Company, the American Cigar
Tobacc Company.
The American Tobacco Company
not only controls the other three prin-
cipal companies named, but is itself a
great manufacturing concern, and it
also directly controls a large m
OF other subsidiary companies. The
field of the American tobacco Com
pany and these subsidiary companies
includes the manufacture Of chewing
and smoking tobacco. of cigarettes for
domestic consumption. and Of social
ed little cigars, together with enter
prises co%ntributory to these branches
of tobacco manufacture.
ne iCdI. St1ull COli1pdIS, Will
it's subsidiary companies. is exclusive
ly concerned with the manufacture Of
snuff.
The American Snuff Company, with
it's subsidiaries, handles the cigar bus
mess of the Combination including
the manufacture of ordinary cigars,
cherOots. and stogies in the United
States and the manufacture Of cigars
and cigarettes in CUB and Porto
Rico.
The RritiCh- A m arioon TnhoooH
Company is distinguished from the
others by being confined to export
business and to the manufacture and
sale Of tobacco in foreign countries.
The American TObac Company
F holds considerably more than a ma
jority of the capital stock Of the
. American Cigar n British-American
! companies and over 40 per cent OF
: the stock Of the American Snuff Com
pany. BY reason OF the fact that
+ certain large individual stockholders
j.. Of the American Tobacco Company
are also stockholders in the American
Snuff Company, and by reason Of the
identity Of purposes, the American
. SNUFF Company may properly be con
: sidered as controlled by the American
:. Tobacco Company.
I The Subsidiary Companies.
! Aside from these four principa
companies. there are SO other cOmpan
: les in the Combination which do bust
mess in the United States. Porto Rico
and Cuba, besides a considerable mum.
Der controlled by the British-Ameri
. can Tobacco Company, which do bust
; ness in other countries. In PRACTICAL,
every one Of these 80 I;
majority Of the stock is held either b
y one of the four principal companie
3 or by some company subsidiary t,
them. In a large number of case
the entire steck of these subsidiar-
companies is thus held. The Combina
ton in buying stocks has apparently
sought control even more than invest
ment.
The American Tobacco Company it
self controls directly or indirectly 4
O fthese subsidiary companies. asid
from controlling the three p%rincina
subsidiary combinations. The Amer
N can Snuff Company controls 6 othe
- companies, the American Cigar Com
pany 26, and the Rritish-Americ
N Tobacco Company 5 (these 5 COMPANY
les buy leaf and manufacture tobacc
IN the United States for export4: tn
=, Rrltlsh-American also controls man
subsidiary companies operating !
other countries.
Capitalization Of Control in a Fee,
Hands.
Inc American Tobacco Compaa,