The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1912-11-29
. NOTE BOOK SKETCHES !


Pres. Hill of the American Tobacco
Co., he has taken the public into his
confidence and tells how the disintegra-
tion Of the big trust has been faithful
ly carried out in accordance with the
decree of the court. He tells how COM
petition has been restored and its effect
upon the trade The four disintegrat-
ed companies have become units in
themselves without any financial or
business connections or interlocking
agreements whatsoever amongst them
selves. Each company has now been
equipped with it's own headquarters,
with its own staff of officers, it's own
board of directors, its own corps of
statesmen, and it's own body of purchas-
ing agents. Leaf purchases are made
by and for each company directly and
for itself alone. They compete among
themselves as the Independents do and
with them. And nowhere as yet has
been heard a complaint that this COM
petition is not real, for it is open and
free from any ENHANCEMENT. He says:
The success of the tobacco manufac-
turer depends entirely on the attitude
OF the public toward his product and
that it is the consumer and not the
manufacturer who controls the tobacco
business. And he proves his state
ment by the citation of many we'll
known facts in the trade, The price
cutting he holds ''is not desirable
weapon to use against competitors.
The retailer makes prices to meet To-
cal conditions and the tobacco manu-
facturers have no power to regulate
this situation.
In the statement given out by Mr..
Hill, president of the American Tobac-
co Co., in regard to that company's
condition since the dissolution, he
touches upon the increased price of leaf
tobacco. He says: SO far as the ex-
perience of the American Tobacco Co.
goes, leaf tobacco, generally speaking,
has brought very high prices since the
disintegration. The high prices have
not, in our judgment, resulted from the
disintegration and the increased com
petition thus brought about. The fact
is that in some of the sections in which
leaf tobacco grows unfavorable wealth
er conditions curtailed the expected
crop. Undoubtedly different people
connected with the leaf departments
of the various companies have had diff
ferent views as to the probable course
aaf prices. This. condition has resulted
temporarily and so far in higher prices,
although prices would have been higher
without this competitive condition. Of
course, if higher prices produce larger
crops, as they will under an unalterable
economic law, prices will fall by opera
tion of the same law. When each COM
petitor,-acting independently Of other
competitors, secures his requirements,
the prices will decline just as certainly
as if the purchasers were not in com
petition at all.
***
The Pennsylvania farmers are facing
a situation the like. of which they have
not experienced in six years. They are
holding almost intact on November Fl
the crop raised this year. In the past
six years there has been buying move
ment while the crop was still in the
fields, and the competition insured for
the farmers high prices. 1t had begun
to look as if raising tobacco in Lancas-
ter county was better than owning a
gold mine, and that the farmers could
dispose of their crops regardless of
whether conditions warranted it or not.
There was no buying In the fields this
year, and very little buying in the
sheds Only small quantity, estimat-
ed at between 1000 and 5000 acres,
has been sold. 1T is believed the 1912
crop will yield about $4,000 cases. With
mnoh of the 1909 crop yet to be sold,
and much of the 1911 still on hand, the
IL a<o% for
ers getting the prices for their 1912
Nine and three cents and ten and three
have been paid for the small quantity
of the 1912 that has been absorbed
The New England farmers are In a
position to thank their stars that the
bonus habit obtained this year. Ordi-
narily around delivery time the farm
ers are growing about the higher price
they could have obtained If they had
only held on. People who have been
through the New England tobacco sec
tions state emphatically that no farmer
has been heard to complain this year
of the price he got, and, as in most in
stances earnest money passed when
the contract was made, there will be
few purchasers who will not make good
on delivery of the crop. There is a
widespread sentiment in the trade that
it is impossible for the people who
bought tobacco in the fields to come
out with a profit. There is a limit to
what the manufacturers can pay for his
material, and the belief is that he
cannot afford to pay the packer enough
for his tobacco for the packer to make
what is regarded as reasonable profit.
The truth of the matter is that the
packer paid what ought to be paid for
only the best possible crop that can be
raised. They were gambling that the
crop would turn out absolutely perfect,
that it would be harvested without in
sect or storm damage, and that the
cure would proceed under absolutely
the best conditions possible. The 1912
New England crop undoubtedly contains
some good tobacco and is a fair aver
age crop, but was overpaid. 1t is
highly doubtful, even if binders con-
tinue at the same premium as this
year, if many packers can be found
to pay the New England farmers as
high prices next year as they did this.
, IT, L. IL al -