The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1918-01-11
NOTE Sook kETcHEs

eventful twelvemcnth for the tobacco
industry. The year opened under cir
camstances that were far from encour-
aging. Stocks Of raw material were
short, and promising to grow shorter;
labor was not plentiful and was grow
ing less plentiful and more arbitrary in
its demands. At the same time, prices
for all manner Of tobacco products were
as low. if not lower, than they were
decade ago The trade found itself in
a tight fix; firmly wedged between
neither millstones Of soaring costs of
production on the one side and solidIy
esta hlished retail prices on the other.
The difference between the producing
cost and the ultimate selling price had
been shrinking steadily for over q dec
ade, and during 1915 and 1916 this
shrinking process had been SO extern
sive as to leave no room for profitable
business operations. manufacturers,
iobbers and retailers were plnching
along with mere vistage Of profit and
the situation seemed TO be growing
more desperate day by day. It was
obvious that the only remedy lay IN a
general advance in prices to the con-
sumner, but this was a task seemingly
so stupendous that the merchant bJdy
of the tobacco industry literally trem-
bled at the mere suggestion of under
taking it. In October the new war
taxes went into effect. About this
time occurred the most important
achievement of the year when, under
the leadership of the publisher of this
paper, m manufacturers Of standard nick
ell cigars began moving their brands
into the six-cent class, with wholesale
prices so adjusted as to give profit to
the manufacturer and at the same time
to increase the profit of the dealer. In
the following month, November, the
clear Havana cigar industry began to
evince signs of divorcing itself from
antiquated and inadequate price stand
ards. The total result is that the year
1918 dawns with prices generally being
revised upward in all branches of the
tobacco business with the single ex-
ception of clear Havana cigars; and
there is promise that even this division
of the industry will undergo a thorough
overhauling in the immediate future.
Indeed, there is every reason for be-
lieving that the new calendar year
which the trade now faces will be the
most profitable that the trade has ex-
perienced in many years and that it
will be the largest, in point Of volume,
in the entire history Of the industry.
Despite the fact that during three
quarters of 1917 this country has been
on war basis, the past year is unpre-
cedented in the quantity Of tobacco
products produced. This almost Justi-
fies the belief that if condition Of war
does not actually stimulate the con-
sumption of tobacco, it certainly does
not retard it. 1t is safe to assume
that the additional incentive Of some
thing more like living profits to manu-
facturers, wholesalers and retailers,
which are now rapidly coming into
vogue, will have distinctly favorable
influence upon all branches of the busi-
ness in 1918. The industrial prosperity
of the country had created tremen-
dous demand for cigars. Second, Eu-
rope had been tobacco-hungry and had
taken enormous quantities Of cigar leaf
tobacco that would have been very use
full if they had remained here. Third,
the 1916 production was under normal.
Fourth, labor and fertilizer were high,
and the farmer actually did find it
costly and difficult to raise tobacco.
Finally, general era of high prices
had come, and contagion of this sort
was in the air. The public, including
the tobacco industry, was in mental
frame of mind that made it easy to
talk and to consider high prices for
everything. This was the situation
when the 1917 crops were placed in the
ground. The growing season was none
too good as general thing, and IN
Wisconsin and Connecticut frost and
hail greatly damaged the crops and
smaller production of desirable tobacco
resulted in these two states. Some
damage by frost was done in Pennsyl-
vania, also. Very high prices were ex-
pected in the first two states named,
and there was no astonishment when
the crops were taken up on price
basis that was in keeping with the
known situation. The buying held off
for some time in Pennsylvania, but
some of the larger factories started off
paying Is cents pound at first, and
prices rapidly scared under the COM
petitive buying, until as high as 81
cents was paid. The bulk of this crop
was taken at less than 25 cents, how
ever. Buying then started in Ohio at
20 cents. The farmers had exaggerat-
ed notions of what their tobacco was
worth and the price was advanced
cent at time until 25 cents was paid.
A considerable quantity of tobacco was
secured at around this price, but in the
meantime the farmers ran their price
up to 80 cents, and there the buying
stopped, leaving quite lot of tobacco
still in the hands Of the farmers. Both
the Pennsylvania and Ohio 1917 produc
tions are normal in quantity. It will
be noted that the cheaper grades have
advanced relatively more than the
grades that hitherto have been costli-
est. There is no such thing as cheap
filler tobacco any more. In fact, the
cigar industry, particularly the small
manufacturers, have suffered greatly
because OF the tremendous quantity Of
low grade material that was shipped to
Europe in 1915 and 1916 In spite of
the shortage in binder production and
it may be stated that Wisconsin, 1917
or0p OraduPa6 not mora fhau TX 000