Evening journal., 1919-03-18
TOBACCO TRADE
SPLITS ON WAR TAX
United Cigar Stores Com
pany Raises Prices, While
Schultz Company Doesn't
THERE'S TALK
OF BATTLE AHEAD

NEW YORK, March iS-A trade war
which threatens to split the retail to-
bacco business wide apart came out
In the open yesterday between the in
terests Of the United and Schultz cigar
stores.
In the background hovers the shad-
ow OF Thomas Fortune Ryan, suggested
by the United people as the possible
explanation Of the situation. in the
foreground, as the immediate subiest
OF controversy looms the discrepancy
In prices now charged for cigarettes by
the two biggest chain store tobacco re-
tailers in the country.
The trouble began when, with the
imposition by the government OF the
new increased tax on smoking mater
ials, the United Cigar Stores Jumped
the prices on some OF the most popular
cigarettes. That was on March 6. The
Schultz people stood pat on the old
rates.
The United interests promptly took
the matter 10 the trade, charging the
competitive concern with '"disruptive
tactics"
1T is generally understood" said Ed
ward Wise, president OF the United
company. commenting on the situation
yesterday. that Thomas F. Ryan has
recently bought into the Schultz cor
pOration. The tactics Of corporations
OF which Mr.. Ryan has been the guild
ing genius in the past are well known.
They have been disruptive tactics Of
this sort"
To this Interpretation OF the matter
the Schultz people entered emphatic
denial.
There is positively no truth in the
assertion that Thomas F. Ryan has any
interest in the Schultz Cigar Stores"
said Arthur S. Meyer, vice-president OF
the company.
"Certain interests" he continued,
have sought to buy a considerable
share in the Schultz company. At the
present time we have the offer Of these
people under consideration. lt is not
yet certain, though, whether OF not it
viii be accepted by us"
Asked II Mr.. Ryan was represented
among these interests, Mr.. Meyer re-
piled:
1T would be absolutely improper and
absolutely unwise for me TO so into
that now"
The Schultz stores. Mr.. Meyer ex-
planned, had large stocks OF several
brands OF cigarettes on hand when the
tax went into effect. The company's
feeling, he said, was that its customers
should. in fairness, get these goods at
the old price.
"The United Stores on the contrary"
be said, apparently felt that the tax
should be added TO the consumers costs
at once"
Mr.. wise. OF the United. took strong
exception TO this view.
u do not see" he protested, "hcw
The Schultz people can possibly make
such claim. Furthermore, ! do not
believe they had any larse stocks on
hand when the new tax became oper-
ative."
Were willing to so on the mat on
this proposition" Is the way Mr.. Mey-
pr put il. I'VE advertised that we
would sell at the old prices for one
week. don't make any promises. but
we may now keep it up much longer"
Mr.. Wise was equally emphatic in
stating that the United win maintain
IFS present rates. In a statement dc
,ated lust J. fore leaving his office last
night he said on behalf OF the United
company:
aNe have started no trade war nor
any other kind Of war on the Schultz
stores. Reports that we are going to
lower prices is wrong. As usual, Mr..
Schultz is seeking cheap publicity.
"Our prices are the same as they