The Washington times., 1912-11-18
TOBACCO TRADE, is
NOW COMPETITIVE
Head of American Compan Says So and Quotes Rates
and Names to Prove His Observation-Disclosures
1t Was Good Move to Dissolve.

ket, to the advantage of tobacco grow
ers under the new order. This he at
tributed not entirely to the dlsintcgra-
ton. but in considerable part to curtail-
ment or the crop In some sections by
bad weather.
That the public, In the last analysis.
has the tobacco manufacturer at his
mercy, is emphasized. Every package
OF tobacco bears it's brand. The house
holder has little chance to know who
mines the coal he burns, who made the
steel in his knife or the cloth In his
clothes; but he can't fail to know who
made the tobacco he buys. II the to-
bacco doesn't suit he knows whose prod
ucts to quit patronizing. and he does II
Cutting prices is not an effective meth.
cd of competition, Mr.. Hill observes;
and then he goes into some of the in
teresting conclusions which have forced
themselves on tobacco manufacturers
Perfumes. candy. tobacco. and general
ly articles that appeal to the individual
taste. are purchased because of that APP
peal To cut the price of an established
article would merely suggest to it's buy
ers deterioration In quality. Cutting
the price OF certain standard scent
cigars has driven them out OF the scent
class and into the Scent class, with the
result that the 5-cent smoker abandoned
them and they were ruined.
Quality An Argument.
Quality. the effective appeal to the
individual consumers taste. is the ef-
fective argument No old brand Is safe
from attack. II something with more
quality recommendation is vigorously
pushed into competition with It. No
tradition is sacred to the ultimate con-
sumner. Consequently, there Is constant
struggle to maintain and protect old
brands and to establish new ones. Com
petition takes the form OF vigorous adj
vertising, OF which fact there has been
ample evidence of late. in the unprece-
dented campaigns of publicity. Some
of the brands between which this war
fare Is now going on are suggested:
The old American Tobacco Company
had a very heavy business on ten for 10
cents cigarettes. Competitive condi-
lions have brought into large sale Fa-
TINA cigarettes. twenty for 10 cents. by
Liggett & Myers. and have created
Omar twenty for 10 cents. by the
American Tobacco Company. and Zu-
belda. twenty for 10 cents, by Pierre
Lorillard Company
Mascot smoking tobacco, a new Crea-
ton of the American Tobacco Company
to meet competitive conditions, Is sold at
one and one-half ounces for cents, a
price heretofore unknown for tobacco of
such quality.
Up. Lorillard Company have brought
out Stag, a scent tin package of smok-
ing tobacco which bids fair to create n
new element in the field.
"Lggett d Myers have produced a
new brand. %. u to fight Mascot
THE American Tobacco Company has
brought out Red J. and Black Eagle.
plug tobaccOs which are fighting the
products OF the X. J. Reynolds Tobacco
Company in a Iuality-and-prtce basis.
between the Acts and st. Leger.'
wcll-known little cigar brands. became
the property of the p. Loriliard Com
pany. The American Tobacco Company
has created 'PiCcadilly.' and Is hghting
for the business of tho lorillard
brands"
Why Stocks Rose.
One OF the most interesting features
OF President Hills discussion OF new
conditions in the business. deals with
the increase In the market values of to-
, bacco shares after the dissolution. The
oil dAmcrican Tobacco. he points out,
! was always dealt In with a consdcra-
! ton of the possibility OF a Government
dissolution suit interfering with condi-
! tions. Despite this menace. Its large
| earnings carried this stock up to 400
| The litigation gave publicity to de.
! tailed statements of the earnings, bust.
ness, and properties involved In the to-
| bacco industry, and convinced the pub
| lie anew of its large possibilities, witt
| this knowledge generally disseminated
| and the menace OF litigation finally re
| moved. the shares went up TO a natura
and normal quotation.