The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1919-01-17
NOTE BOOK SKETCHES

were placed IN the early buying, is
showing up its disadvantages as the
crop is now being received, for pack
complain that from 25 to 80 per cent
must now come out in the sorting and
classed as filters or low grade leaf, to
be eventually turned to the stemmers.
Formerly filters and trash were bought
at "a separate p-ice, to be taken out
and bundled when the crop was strip
ped, and the dealers expected the
grades to be delivered to them in fairly
clean condition. But now at a straight
price when everything on the stalk is
stripped in, the additional work in
warehouse handling in eliminating the
low grades adds quite largely to the
expenses of the packing room. Be-
sides it puts the cost of binders on high
priced tobacco into quite astonishing
figures. It is question if return to
the old custom of buying low grades at
a separate price may not have to be
returned to for future buying. This is
especially true in seasons when the
cost of packing crowds five cents a
pound. as it will do the present year.
~
Growers never used to complain when
they were required to bundle their fill
ers and trash separately, for it is no
great hardship to do so when their to-
bacco is stripped. 1t is quite probable,
too, that those growers who have not
yet sold have their crops fairly clean to
show prospective buyers now, for it
adds to the attractiveness of their to-
bacco to have it put up in fine shape.
It is to be hoped, too, that all high
case leaf has been kept out and bun
died by itself, for it will save trouble
at delivery, which few growers are
now experiencing while the early pur-
chases are being received
~
The activities of the tobacco division
of the Subsistence wing of the War
Department will likely continue for
some time yet, although the purchases
will probably be somewhat curtailed
There is belief prevalent that tobacco
.Eil be made a permanent addition to
The army ration. In 1864 by provis-
ion of the law the President was given
authority in an emergency, or view
to the health and cleanliness of the SOL
dier, to change rations. adding what he
might deem necessary. 1t was under
that clause tobacco was added to the
ratons for the ''boys over there" and
the present tobacco division organized
in the subsistence department of the
army. The testimony of General PERISH
ing and other officers has been unan-
imous that the issue of the tobacco ra-
tion proved of inestimable benefit in
making the soldiers more contented
with their lot, and that no harm in any
way came therefrom. Under this warm
endorsement it is believed tobacco will
be costinued as a regular part of the
army ration, and should that be the
outcome the tobacco division will prob
ably remain as permanent fixture. 1t
is probable, however, that it will be
under the supervision of regular army
officers.
s.%
The American Tobacco Co. and the
Liggett & Myers Tobacco Co. will run
close race in the matter of 1918 gross
business, says the Wall Street Journal.
On the basis of results over the first
eleven months the first should show a
sales result between $40, 600, 900 and
$145, 900, 600. In the first nine months
Of the current year Liggett & Myers
sales amounted to $1O8, 900, 900, or an
annual rate of about $143, 600, 600. The.
straight tobacco business of the former
combination was divided among four
concerns-American Tobacco, NLiggett
& Myers, the P. Lorillard Co. and r.
j. Reynolds. The first two have al
ways done the largest amount of busi-
ness, and, in fact, the apportionment
under the courts dissolution decree
was made on such basis. The figures
given above snow that these two COM
panies will divide between them close
to $500, 600, 900 of business in the cur
rent year. History shows that govern
ment taxes on tobaccos during the war
periods have invariably been passed
along to the consumer The present
war has proved no exception to this
rule. The prices of all forms of tobac-
co goods have been advanced at least
as much as the increased amount of
federal taxes Not only have tobacco
manufacturers made up for the in
creased tax levies by adding on to the
price of goods to the smoker or chew
er, but they have also taken into con-
sideration increased leaf costs and the
higher price for labor. In this connec-
tion they have only taken the position
assumed by many other industrial con-
Germs. The increased cost of leaf since
the start of the war has been one of
the big problems for the tobacco man
ufacturers of this country. 1t has ne
cessitated the raising of additional
working capital by not only the tobae-
co manufacturers, but the snuff manu-
facturers as we'll Both Liggett e
Myers and American Tobacco have Sc
cured large amounts of money, and the
latter has put it's common stock divi-
dend on script basis in order to keep
additional money in the treasury. De-
spite all this, tobacco securities are
now selling at the highest price of the
last +hrao unora and fhn nnvinc- of tba