The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1909-03-19
NOTE BOOK SKETCHES

hlSuIitS 4IOiI Tile oGdllupOAAt SidI q
calm often precedes storm, the New
York tobacco journals are predicting
marked revival in the leaf trade soon.
Taking their word for it, the market
holds less tobacco suitable for the use
of manufacturers than any time in some
years past, and it is but question of
only short time before an advance in
prices is sure to come. We know
whole lot of holders of 1906 tobacco
who would be more than pleased to be-
lieve the situation above described is
true. One thing they surely do know
that the past year has been a gloomy
one for the leaf trade and they feel it
is about time for the pendulum to swing
back the other way. And it can not
come too quickly either for many of the
packers are anxious to balance the
books and learn just how large amounts
must be charged to profit and loss ac-
count for the mistakes of 1905.
-
For a dull year in the tobacco busi-
ness the American Tobacco Co. seems
to have been decidedly prosperous. The
annual report of the big trust, includ-
ing all it's allied subsidiary concerns,
shows net earning of $38, TOT, 4O5. 22.
1t has assets figured at S282 million and
liabilities of 244 million dollars, includ-
ing 1O9 million of common and preferred
stock and 1O7 million of A and 6per
cent bonds. There was paid in inter-
est, dividends and premiums over 10
million dollars to holders of securities.
In the maze of figures running up into
millions the fact cannot be disguised
that a. good sized melon was cut for the
benefit of the holders of common stock
who received four dividends of % per
cent and an extra 221 per cent as a
Christmas present, in all amounting to
owes 13 million dollars. And yet the
reported earnings of the big trust do
not quite come up to those of the Scot
ten-Dillon concern of Detroit, made
public short time ago.
~
aAGsd TOW the. Connecticut tobacco
growers are talking of uniting to re-
strict the acreage of this years tobac-
co crop. Of course, the low prices of
their tobacco last year and the one be-
fore is the reason. But we cannot see
how smaller crop, or even half crop,
is going to help them. The trouble has
not been because there was too much
tobacco, but because of it's inferiority.
New England has been raising wrapper
leaf, but the quality was poor, much
below the average, and the trade did
not want it. If they are wise they will
plant as much tobacco as before, but
let it be binder or a filler crop, as we
are doing and making money at it, too.
That is their remedy. AS to acreage,
nobody will know until the tariff ques-
ton is settled. Of course, if the tariff
should be very much decreased it would
effect acreage. The result of the past
two seasons will probably cause some
reduction in acreage anyway.
The night rider troubles have driven
many tobacco farmers from Kentucky
and Tennessee and quite colony of
same is now located in Missouri, prln
cipally in Jackson, Cass and Buchanan
counties, where the soil is especially
adapted for the growth of the Burley
type of tobacco. Last fall and winter
over 100000 pounds of white hurley
tobacco were shipped from Weston,
Mo-, to the Louisville market and sold
at remunerative prices. In the old days
Missouri was one of the principal to-
bacco growing states and this condition
will soon again be achieved unless pres
ent indications are entirely at fault.
The extraordinary efforts now being
made by European tobacco manufac-
turers to find cheap substitute for
American leaf have constituted the
most significant foreign trade develop
ment of the past year. The tendency
has been reported on by our consuls IN
all the countries in which official mon
opolies are maintained, but has extend
ed to other countries in which severe
competition has had much to do with
the movement for cheaper raw mater
ial. An extremely interesting report
upon the tobacco industry of Belgium
has been received by the Department
of Commerce and Labor from Consul
General Watts, of Brussels, supple
mented by statistics furnished by Con-
sul-G General Diederich, of Antwerp, both
of whom record decreasing imports of
American leaf and increased receipts Of
the cheaper grades of Java and Hun
garian tobacco. The attempt to stimu-
late the production of domestic leaf,
which has been made in Japan and GER
tain other countries maintaining monop-
olies, has not been pursued in Belgium,
and there hac recently been slight,
but significant, decline in acreage and
production. This is just what happens
when a combination attempts to fix an
unreasonable price upon any export
commodity. The great bulk of Ameri-