The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1911-08-11
NOTE BOOK SKETCHES


Despite the fact that the crop gen.
orally still hangs in the balance, we are
creditably Informed that buying of the
new tobacco in the fields has commenc-
ed in a limited way in the Trempeleau
valley and in the Vernon county sec
tion at prices around 10 and II cents
and even better for the choice selec-
tions. The contracting is being done
in localities that have been favored
with greater rainfall, but at best most
people view such trading as mere buy
ing prospects, involving a whole lot of
contingencies that careful investors
would hesitate at. The only theory
that would seem to Justify such pro-
ceeding is the present likelihood of a
scarcity Of binder leaf in the present
rop; but it is in nowise probable that
any great amount can be found at pres
ent attractive enough to warrant TAX
ing chances on. But the starting of
the buying movement has sent buyers
skerrying into the growing sections
throughout the state and lively chase
is on even though but few contracts
are closed. If conditions were more
favorable there might be some excuse
for the burning of gasoline and the
wearing out of horsefesh, but from a
BUSINESS outlook appears like an i'll
advised and risky proceeding. And still
it was not unexpected.
"a
The American Tobacco Co. has or
dered the eight branch buying houses
in West Virginia to cease business,
thereby making a sweeping change IN
the purchasing of tobacco in that state.
This is another important step in the
Transformation being effected in the
management of the various subsidiaries
Of the company. It is assumed that
following the order some time will
elapse before buying is recommended
on the new basis to be adopted by each
separate company, acting as detached
unit.
The output of cigars in the Ninth
Pennsylvania district during the month
Of July did not come up to expecta-
lions. The total was 81, 762, $50. Last
month it was ga, 234, 10. Quite drop,
to be sure, but then there was the
Fourth Of July holidays, which meant
aS some factories almost the loss OF a
week, while following that period came
the intensely hot weather during which
many cigarmakers could not work.
Fifty-seven million is pretty good
output anyhow for the midsummer
month. The month, compared with
July of last year, is not very far be-
hind.
The difficulties attending the reor-
ganization of the tobacco trust in Or
der to conform to the decision of the
supreme court dissolving the corpora
ton is now attracting the attention OF
the financial centers as we'll as afford
ing a perplexing question for the
courts. In discussing the matter with
a correspondent of the United States
Tobacco Journal, Attorney General
Wickersham said that the tobacco case
presented features much more COM
plex than those Of the Standard Oil
case. sit is a comparatively simple
matter for the Standard Oil Co. to dis
solve under the decree of the court,
said the Attorney General. "All they
have to do is to divide up the holdings
of stock in various companies among
the holders of the Standard Oil stock,
giving each his pro rata share IN the
subordinate company. The Standard
Oil Co. of New Jersey was merely
holding concern, and all it held was the
stocks and bonds Of the subsidiary com
panies. In this respect it varies from
the American Tobacco Co. which is a
manufacturing company and which also
holds stocks and bonds of other COM
panies and further has preferred stock
and two classes of bonds of its own.
In the case of the American Tobacco
Co." continued Attorney General Wick
ersham, "the supreme court not only
held that the monopoly Of the Amerl-
ican Tobacco Co. and its subsidiaries
must be broken up, butsit provided that
none of the new companies to be organ
lied could be monopoly of itself. =
"'Do you mean to say that it will not
be sufficient for the American Tobacco
Co. to resolve itself into different
parts, such as the American Cigar Co.,
American Snuff Co., etc." asked the
correspondent Yes replied the At
torney General, that is exactly what
| mean. The American Tobacco Co.
has had a monopoly of about so per
cent of the cigarette business of the
country. 1t will not be sufficient in re-
organizing the trust to leave any one
company in control of all the cigarette
business which has heretofore been
controlled by the American Tobacco
Co. The tobacco business as whole
must not be in the hands of monop-
oily nor must any branch of it be in the
hands of a monopoly. There must be
no monopoly in the manufacture Of CT
gars, chewing tobacco, snuff, cigar
cites, or any other form Of tobacco. =
It is interesting to note that while the
Standard Oil Co. is dividing its stock
so that each share will represent a GER
tain amount in each of the companies,
ranging from cents in the Washing
ton Oil Co., to $25 worth in the Nation
al Trust Co., judging from what the
Attorney General said there is posi-
bility that entirely new companies will
he created out of the fragments of the