The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1911-09-01

NOTE BOOK SKETCHES


thousand cases of binder stock will
supply the immediate needs of the
large manufacturing firms that are now
in the field bidding against one another
for contracts on the new crop. Until
these orders have been filled a hot-foot
campaign in the buying movement is
likely to continue even at prices that
prohibit the independent dealer getting
into the game. 1t doesn't seem to be
matter of price to them so much as
that of securing the first pick of those
crops that look like yielding desirable
binder leaf, and so the rush to the
green fields goes merrily on. The hum
dred or such matter of buyers daily
riding the growing districts, having no
limit but the sky, are getting options
on tobacco sure enough and they are
paying we'll for it too, several, cents
more than the growers ever expected
to get. These conditions have brought
about the richest pickings the Wiscon-
sin farmer has seen in many year
and he is subject to congratulations on
every hand. A few cents more or less
paid for binders doesn't figure much in
the cost of thousand cigars with a.
manufacturer who is short on stock,
and it looks as if ne were willing to
divide profits with the grower this year.
~
But suppose the big operators do buy
so or so thousand cases even of the
present crop at the going prices, what
is to become of the other 80 thousand
cases grown in the state this season?
1t is admitted that no one but manu-
facturer can afford to buy green Wis
consin at such figures without grave
chances of a loss, so what will it event
ually bring? But that is another story
to be told later. Take our advice and
get in "while the water is fne."
***
1t is not only the first cost of the to-
bacco that is going to be expensive to
tnose engaged in the buying movement
this year, but it is the buying expense
of the men in the field that is running
up higher than ever before. 1t costs
money to operate automobiles, and then
the time wasted in trying to convince
the grower that he ought to sell his
crop in the field, when he knew better
all the time, has added hundreds OF
dollars to the expense accounts OF buy
ers. Then, too, the putting into the
field of inexperienced men with no ap-
parent aptness for trading; and many
OF them inclined to give the grower ali
there was in it; their position gave
them a much coveted opportunity to
help spend the millionaires' money. 1t
will not be surprising if it costs some
of the firms more than half cent
pound in buying expenses alone.
**
After nearly month of conferences
with. government attorneys, officers of
the American Tobacco Co. say they
find their problem of reorganization is
much more difficult than that of the
Standard Oil Co., which simply is dis
tributing the stocks Of its thirty-three
subsidiaries to stockholders. The to-
bacco concern will, it is said, have to
wipe many of it's subsidiaries out OF ex-
istence 1t is asserted no redistrlbu-
tion of stocks will be permitted by the
federal authorities. The government
attorneys are determined that the re-
organization of the American Tobacco
Co. shall be model for all the So
called trusts. In handling their prob
lem, American Tobacco Co. officers
have called to their assistance finan-
ciers we'll known in Wall street, men
who are experts in banking, in corpor-
alton law and financial reorganization.
These experts, it is reported, are unit
in saying they have a most difficult
task to perform.
When the Supreme courts decision
was handed down last May the Ameri
can Tobacco Co. officers We're of the
opinion that reorganization would not
present many difficulties. In month
or two they had outlined reorgan-
ization plan familiar to Wall street.
This plan provided for separation of
the corporation into it's integral parts
and pro rata redistribution of stocks
to security holders. The government
attorneys rejected the proposal. 1t was
decided that by the court decision many
of the corporations subsidiary or ac-
cessory concerns were monopolies and
would have to be dissolved. The Amer
lean Snuff Co. was cited as an exam
pie. In the first period of it's career
the tobacco concern manufactured lit
tie snuff. There was organized in 1900
the American Snuff Co., which absorb
ed all the large firms manufacturing
this product. The company is owned
by the tobacco company.
**
It is asserted the American Tobacco
Co. controls not only the production of
tobacco, it's manufacture, and its dis
tribution, but also either controls or
owns numerous companies manufactur-
ing supplies necessary to its trade. 1t
owns 6,521 of the 1000 shares of the