The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1911-11-03
NOTE BOOK SKETCHES



| A hearing on the reorganization plan
of the Tobacco Trust has been dragging
| along before the Federal court in New
| York during the week The opposition
represented by an array of legal talent
| haYe presented all kinds of objections
to the plan of dissolution by recreating
| separate plants to take over the huge
| business, while the government also
demands certain changes in the propo-
| sition. Among the things the attorney
general insists on are these: Owner
ship of 40 per cent in another company
| is not allowable No officer or director
in common. They shall not retain or
employ the same clerical or other Or
ganlzation or occupy the same office.
They must not have the same agencies
| for the purchase of raw material or for
the sale of the finished product. That
the stock of the United Cigar Stores
company must be sold and distributed
| to parties other than the twenty-nine
defendants in this suit and must not be
sold to the trusts common stockhold-
ers." It looks as if more changes are
needed before the trust secures the gov
ernment's s permission to continue to do
business.
So
The objections filed by the independ-
ent manufacturers against the reor-
ganization of the tobacco trust, dealing
especially with the American Cigar Co.
put forth the following demands:
Under the plan the American Tobac-
CO Co. is to retain in its treasury the
stock of the American Cigar Co. now
held by it. The American Cigar Co.
should be separated absolutely from
every other corporation which carries
forward any part of the manufacturing
business of the trust in other tobacco
products. All the American Cigar Co.
stock held by the trust should be trans
ferred to some group of individuals en-
tirely distinct from those who hold the
stock in the corporations which take
over the smoking tobacco, plug tobac
co, snuff and cigarette business of the
trust. Furthermore, the manufacture
ing business of the American Cigar Co.
should be divided among at least four
separate corporations, each owned by a
distinct group of stockholders; and each
of these corporations should be subject
to prohibitions substantially similar to
those set forth in respect to the other
corporations, carrying forward parts OF
the business of the trust.
Is
If trust busting" is to continue the
u. S. Tobacco Journal insists that no
favors be shown, even if it involves
the farmers organizations for con-
trolling prices. Here is what it says:
ttWhile the trade is working itself
into hysteria not only to oppose the
proposed recreation plan of the to-
bacco combination, but demand its COM
plete destruction by receivership,
the fundamental elements of the trade,
the tobacco growers of any number of
tobacco raising states are gravitating
| towards the very conditions which the
anti trust law in the construction of the
United States Supreme Court has de-
clared as unlawful and against public
policy, namely: To restrain trade and
eliminate free competition. The per-
nicious example set by Kentucky's
| hurley trust is to be followed not only
| by the hogshead leaf raising states of
the south, but also by the cigar leaf
raising states of the east and north
west. The history of Kentucky's bur-
| ley trust is a blot on American civiliza-
| tion. There can be no question about
! that. That trust was organized not
| only in fragrant and most defiant viola
| tion of both the national and state
anti trust statutes, but the way it was
organized and carried through its law
! less ends, was STEPPED all through with
| the most atrocious crimes. So we may
just as well make up our minds to
reckon in the near future with to-
bacco pooling trust in every cigar leaf
growing state. And what will then be-
come of the ''poor" cigar manufactur-
er? The E'poor" cigar manufacturer
is today already on account of the high
and steadily increasing price of the CT
gar leaf a standing object of sympathy
! if not of pity in the leaf market. Chow
can the poor cigar manufacturer
stand these prices" is the general
phrase running along now in the leaf
| market. But will he be better able to
stand the prices of pooled tobacco? If
| the Wisconsin pool, and the Ohio pool
and the Pennsylvania pool should de-
eide on price of Is cents, or Is cents,
or even 20 cents and there is no limit
which trust immune from federal in
| reference could not set-what will
| then become of the now already alleged
"poor" manufacturer, not to mention
| the really poor leaf dealer? 1t doesn't
| require too vivid imagination to pict-
ure the deluge in which both our cigar
| industry and leaf trade would be i'm
merged if the pooling movement in our
cigar leaf growing states should take
substantial shape"
~
According to the report of the COM
mittee of Tampa manufacturers who
attended conference with Internal
Revenue Commissioner Cabell, recent
| ly at Washington, on the free smoking
, ruling, the commissioner is going to
stand pat OH his ruling, the only con-
cession being that the manufacturers
will have until January ! to reach some
agreement with their cigarmakers for
l the 6ictrihI1 tinr, of froa fay-raid CIGARS