New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-18

is conducted in the open.
1t is likely that four thousand travelling
statesmen are now employed by the va
rious companies which formerly consti-
tuted part Of or were in alliance with
! the American Tobacco Company and
whose respective employers are now I'M
der the terms of the injunctions re-
ferred TO.
These statesmen are Of necessity IA
miliar with the policies Of their respec-
tive employers or they would be unable
intelligently TO do their work.
Naturally, from such large BODIES OF
men individuals are constantly changing
their employment, and they would carry
with them the news of any attempt or
collision between the companies. In one
department alone I'm one company IN the
last six months six or eight high priced
Salesmen have resigned to go to an IN
dependent concern that was never in any
way connected with the American To-
bacco Company.
There are over five thousand Jobbers
dealing directly with the American To-
bacco Company, and most of them un-
doubtedly deal with the other TOBACCO
manufacturing concerns that have oeen
cut Off from and carved out OF the Ameri-
can Tobacco Company and shey are IA
mlliar with all trade arrangements.
In buying the raw material tho leul
buyers of the various companies Duy AZ
open auction, In the presence on croWqs
OF competing buyers, ana oollusion "oulu
be impossible under such conditions.
Is il possible that sane men managing
these various companies would contem-
plate collusive and feigned competition III
the face of such an army or witnesses
and IN the teeth of injunctiVe proVlsio I3
OF n decree disobedence TO which Woulu
lead to condign punishment2
! What will be the effect OF the compeu-
tlon2 No man can tell but that the coih-
pctitlon Is real and will continue TO De
real IS absolutely true.
As TO the increased market value OF
the securities of companies which tor'
rnerly constituted the American Tobacco
Company, Mr.. Hill offered the following
explanation:
In the court proceedings looking 10 the
disintegration there was most ut 80 t6a
earnings and properties behind the war;
Gus securities distributed ana the sS0"ta 20 q
ties OF the new companies iOIlieI, %,
that all men had an oppoFluhiy " 80
Tor themselves the value or the propcl
Alter the dlslntegration all of these
securities sold out from under lhe sH dto y
of a government suit Tor dlssg!uI,oiI, 80 co
| II IS well known that securities WHoSe
market value IS low compared with tuelr
par value sell for nearer their real VaIue
| than those whose market VaIue ID very
| high. ,,cs.-.,,,. IN
These things explain the difference 10
market values in the aggregate OF "hds
has come TO the common stockholders ol
the American Tobacco Company as COIL
pared with the market value OF their
stock before disintegrauon'
Stockholders Lost Millions.
The fact remains. though. that the dis
lIntegratlon, taking into account the heC a,,d
gitv involved in paying OF IN C dsn 60
I tIr.. cent nDNls anu
~ nor cent bonds OF the American
Tobacco Company, ana taklHs INA nv, O.,
count the increased rate OF dlNtacIlu vi.
tba TJggatt q Meyers Tobacco company
,r,ir.crsrrSd stock and the =. LOrilldrd com
ranv preferred stock, as compdteu W. W.
tTa old American Tobacco company ~.
Jared stock, euJaued an actlHl Rsl.a'C 2
inflicted on the common SlO'hllO4,-, .L.,,,,.
inc tn many millions OF uol1aIs' III,
Ruvers an the exchanges were uhWiIl-
~, 10 nav The full value, based upon IN
come al least Of the Ola amer !e3m ~, ~
bacro Compauy's common stoch' WIZ
snfd pt "a very high price compared WIN
90 "a which was subject 20 the
Jeopardy OF an imminent or pehalhs 81,
Iv tTe government which had IN IL the
threat OF the possibility OF receiver
ship ,,.tIrt,,o, ~ nav
n laTger amount IN the aggregate TOT
the different things that no" Ttp'e5e ~
what this old stock did represent, "nGiH
the lmmlncuce Of the government sun
ls at an end. a.. 49,, 4,
They undoubtedly realize that there Us
COMMUNICATION between the companies, ana
that competition may mean reduction %, OF
proflts They believe, Also eNluyultS .
.bat in tho tobacco business competition
while Il reduces the percentage OF pronl'
viii likely Increase the volume OF ousi.
ness 10 such an extent that me amouhl
OF profits OF a competitor VIII not oe
f'udoubtedly in tho tobacco business
oompetjtive efforts do increase volume
Of business. and whether such increase
OF volume will serve 10 MAINTAIN o. IN, 'I,
crerse the amount OF profits In the Iace
~ tho additional expense In marketing
goods remains 90 be seen.