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

Washington, d. c., Feb. 25.-Herb-
crt Knox Smith. Commissioner Of Cor
ro~rations. today made public Subdi-
\ isions II and III of Part / Of his re-
Dort on the Tobacco Industry. They
deal with the present organization eli
the Tobacco Combination, so-called,
its degree Of control in that industry.
and the development of that control.
These divisions of the report. re-
Sulting from q thorough Investigation
into che business operations of the
Tobacco Continuation. contain an
elaborate discussion of the methods
by which the manufacture of tobacco,
except cigars. has come under the
control Of q comparatively few capt.
taIsts. Commissioner Smith says:
I'm the Tobacco Combination are
the American Tobacco Company and
its three great subsidiary combina-
tons. the American Snuff Company,
the American Cigar Company, and the
British-American Company, besides
c~ighty-two other subsidiary concerns
doing business in the United States,
Porto Rico and CUBA. The Combina-
ton represents a tota. net capitaliza-
lion OF over $316,0O0, 600. A very
ma group of ten stockholders cor
trolls 60 per cent of the outstanding
voting stock of the American Tobacco
COMPANY. through which company
the entire combination is controlled.
The Bogus Independents.
A list Of the subsidiary companies
controlled, Including over twenty
hitherto SECRETLY controlled. so-called
bogus Independent concerns" is
given in the report. 1t is shown also
that the Combination is practically
the only important exporter Of to-
nacCO manufacturers from this cOun-
try. Astonishing figures are given in
respect to the development of the
Combination. In 1891 it controlled
SO per cent of the business Of cigar
cite manufacture. and this propO
ton practically is maintained today,
in cigars its output increased from 1
per cert. of the business in 1897 to
Il 7-16 per cent in 1906; while il
manufactured tobacco lchewing
smoking, fine cut and snuff "tht
Combinations output increased from
Z per cent of the total in 1891 to Z
per cent in 1906. Finally. in 1905. tn
Combination controlled of these sep
arate products. respectively, plug S.
per cent, smoking Il per cent, fine Gu
IL per cent, and snuff SO per cent.
IN the year 1906 the Combination uset
IN the manufacture OF it various pro
ducts nearly 800, 200, 600 pounds Q
leaf tobacco.
AN idea OF the absorption Of com
peting plants, says Commissions
Smith, and of the changes throug,
Combination within the last decad
may be had from the fact that i
1897 the Combination had ten plants
cach producing over 5000 pound
or manufactured tobacco Or snuff pc
year while there We're 243 independ
cnt plants Of the same class. In 1905
on the other hand. the Combinatio
mad Is plants of this class and indie
penaent manufacturers 140. Espe
clally conspicuous has been the all
"orptlon OF the large plants. In 100
the Combination had s plants, eac
~foducln over 1000, 900 pounds c
'hese products per year, While il
competitors had As such plants.
.so the Combination had "a plants ,
only Il.
Gains Bv Independents.
Despite the Combination.s enorr
~ ehpeholtures for advertising an
nric senetnes- and despite freoue,
:aghtine ing ny means Of it's co-calle