The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1919-09-05
NOTE BOOK SKETCHES

In commenting upon the effect the
cigarmakers' strike has had on the ci-
gar leaf industry, the Tobacco Leaf of
New York says: While freely admit
ting the fact that the present strike
tie-up has resulted in decrease in ci-
gar production of approximately fifty
per cent for two months period, Wa
ter Street packers are united In their
opinion that the corresponding decrease
in the consumption of raw material has
not, in any appreciable degree, affected
the general outlook of the cigar leaf
market. eve realize," said one of
Water Streets most important oper-
ators, that this recent loss in pr0duc-
tion can never be recovered, even by
an immediate return to normal activi-
ties in the cigar industry, and the en-
ployment of every facility which the
industry possesses. Under ordinary
conditions the resulting two months ac-
cumulation of reserve leaf stocks in the
manufacturers hands would undoubt-
edly be reflected upon the leaf market.
Under existing conditions, however, it
will do no more than relieve, some
what, the acuteness of serious short
age which existed before the present
labor troubles developed. As matter
of fact the beginning of the strike tie.
up found the majority of manufactur-
ers were compelled to resort to the use
of new leaf at far earlier period than
ever before. Therefore, the need for
cigar leaf tobacco of all types is GER
tain to be keenly felt as soon as pro-
duction returns to normal. Even allow
ing for the fact that perhaps less than
fifty per cent of the normal demand for
raw material has been made upon the
existing floating supply Of cigar leaf
this does not alter the fact that the
shortage, while modified, has by no
means been overcome. The govern
ment report of leaf tobacco on hand
does not take into consideration the
fact that from sixty to seventy per
cent of the Wisconsin crop of 1917 was
definitely subtracted from the cigar
leaf supply by the stemming concerns.
Nor does it take into separate consid-
GRAFTON the vast quantities of Ohio and
Pennsylvania tobaccos which were like
wise diverted. Therefore, | feel that
/ am speaking conservatively when /
say that the statistical position of the
cigar leaf market is as strong as ever;
that there will be no decrease in cigar
leaf values; that return to normal
production of cigars will react in an
immediate quickening of the demand
for all types of cigar leaf tobacco at
fair prices" That many manufactur-
ers are already in thorough accord
with this view Of the leaf situation is
indicated by the fact that there is even
now fairly active demand for all
types of cigar leaf, which is considered
quite remarkable in view of existing
conditions.
Nowhere in the trade is the news of
the installation of cigar making ma
chinery more eagerly welcomed than in
the leaf trade and by the tobacco mer-
chants. The leaf men, as well as the
manufacturers, appreciate the fact that
the lack of progress IN the cigar busi
ness has been due more than anything
else to the shortage of labor in the ci-
gar industry. The transferring of the
industry, or large portion of it, from
hand work basis to mechanical
basis will overcome this difficulty. With
machinery it will be possible to turn
out as many cigars as there is de-
mand for. The prediction is made that
the general installation of machinery
will mean the beginning of an enlarge
ment of the cigar industry; and that
progressively, as machinery takes care
of more and more of the production,
the output of the country will increase.
1t is stated that cigar-making machines
are being produced now at the rate of
two a day, and that this will be in
creased shortly. At present, machines
may be installed in four months after
the time of giving the order. IN. Y.
Tob. Journal.
According TO an announcement just
given out by Commissioner Roper, of
the Internal Revenue Bureau, after
long consideration of the subject, the
scale Of bonds to be given by dealers in
leaf tobacco under section 7O4 of the
revenue act of 1918, has been revised.
The penal sum of such bonds will be
based on the average quantity of to-
bacco on hand. determined by adding
together the quantity on hand at the
end of each month of the preceding
year, and dividing the sum by IL. The
new scale which becomes effective i'm
mediately is as follows:
Average Amount Penalty
of Tobacco. of Bond
O to $4,000 lbs IS 500 90
$4,000 to 100, 600 lbs. -. 1,500 90
100000 to 25O, 900 lbs. -. $500 90
250,000 to 500,O lbs. -. 5000 90
500, 900 to 1000, 900 lbs. 80. $500 90
/, 900, 600 lbs or over. ... 10000 90
A new bond may be required in the
discretion of the collector or under in
struction of the Commissioner of In
ternal Revenue. Any bond previously
filed will be returned to the principal
upon request. after new bond under
the present instructions has beeu exc
cutaC hearing tnn Same date as the old