Daily press. [volume] (Newport News, Va.) 1896-current, 1909-02-26
MORE ABOUT The GREAT
TOBACCO COMBINATION
Commissioner Of Corporations Smith
Submits Further Report to
President.

WASHINGTON, Feb -. -iierbert
Knox Smith. c mmiSsloner OF cor
pOrations. today made pubic SUE
divisions II and III OF part or hi'
report on tho Tobacco Industry
They deal with the present oreahi'
cation OF the Tobacco Comblna Ion
s. called. its degree OF control III 'h''
II Ilu,try. and the development OF
that control.
These divisions of the report. re-
smiling from a Thorough invcStiGa-
ton into the business operations Ct
the Tobacco Combination. contains
an elabcr rate discussion OF the m''h'
DDS by which the manufacture o.
tobacco. except cigars. has come MI
der the control of Il compara'l'''
IL few capitalists. Commissioner
Smith says:
I'm the Tobacco Continuation are
The American Tobacco C;mpanE ah'.
its three great subsidiary combiha'
lions The American Snuff Compah!
The American Cigar Company an"
the British American Company. De-
sides 50 other subsidiary concerns
doing business in the United S'a''S'
Porto Rico and Cuba. The Combl-
nation represents total net rap'-
taliation of over $316.0oo.""o. A
very small group of ten Stockholm
ers controls 60 per cent. of IN" out
stading voting stock of The Amerl'
can Tobacco Company. through
which company the entire ccmbina'
ton is controlled
A list OF the subsidiary companies
controlled. .'nicluding ever twenty
hitherto secretly controlled, sS-caiie"
bogus Independent concerns. is CIV
en- in the report. II is shown al"'
that the Combination is practlcal'
w. the only important exporter OF
tobacco manufactures from TINS couh
try. Astonishing figures are given
in raspect to the development oil
the Combination. In 1891 1t controls
ed 50 per cent of the business o.
cigarette manufacture. and this rio
portion practically is maintained 10
day. In cigars its output increased
from 4 per cent of the business III
1897 70 IA 10 per cent In 1900
while in manufactured tobacco 'che"
ing smoking. fine cut and shuh
the Combination Outpu increase
from 7 per cent of the, total in 1881
to II per cent in 1906. FlhallS' II
1906. the Combination controlled o
these separate products, respective
" plug 50 per cent, smoking a
nor cent. fine cut 81 per cent. anc
snuff 9S per cent In the year l9"'
the Combination used in the manu-
factnre of it's various products near
" 300. 900, 900 pounds. OF leaf tobacco
IAN idea of the absorption OF com
netting rlants." says COMMISSIONS
Smith "anl of the changes through
Combination within the last dccade
NAV be had from the fact that il
| 1897 the Combination had ten plants
each producing over 10000 pounds ~
manufactured tobacco or snuH Pc
| rear while there were 243 lndepeh
dent rlants OF the same class ii
| 1906 on the other hand. the Com
| bination had IS plants OF this cias'
and independent manufacturers IA"
Esrpecially conspicuous has been TN
absorption of the large plants. u
| 1897 the Combination had plant
each producing over 1.0o".OO0 pounds
| Of these products per year. whiie IL
| competitors had IS such plants. II
| 1906 the Combination had "a plant
| Ct this size. and independent con
i Germs only IL.
Despite the Combination enot
mons EXPENDITURES for advertiser;
and In schemes and despite ire
{ aueut price cutting bv means OF IL
| so-called fighting brands. there ha
bcen- in several branches Of the III
dus,ry a constant tendency for CON
| pe,itors to gain business mere rapio
" than the Combination and mus u
| reduce its proportion OF the o"'p"'
This tendency has been overcome on
IL bv continued buying M Of com
vesi,iye concerns. Many weaker con
; GEMS have been virtually driver
| ont Of business or forced TO sell on
| TO the Combination. either by reason
l,f the direct competition OF III" iai
| ter. or as an indirect result OF TN
vigorous competition between tn
| Combination and larger indepcnden
concerns which t. acquired however
the Combination has usually secnTe'
/ control only by paying high price
, The immense profits Of ~" Com
binaticn have enabled II to Keep nj
| this policy
DRAWING the Line.