The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-02-18

NOTE BOOK SKETCHES


PiCcSft idtS Is i'tt udFfHS easy SiPO-
ding Tne southern senators disclainl
any responsibility for the bill, and
throw the blame on the senators from
Conne cticut, ''the only section of the
country to derive benefit from such a
tariff, - Or that point Senator Simons
of North Carolina said: eff there is
any tobacco in this country that is COW
cred by the provisions of this bill, out
side of that grown in Connecticut, do
not know of it. Tobacco is grown
chiefly in the South. More than half
of all the tobacco of this country is
grown in the South, and l never yec
met southern man who believed that
tariff on tobacco would be worth one
cent to him. | have never heard of
them coming to congress and asking
for the imposition of any duty upon the
character of tobacco which they grow.
To an outsider it looks as if neither the
North nor the South now is willing to
be held responsible for the measure.
x**
The situation in the tobacco industry
is peculiar. The retailer of cigars does
not lay in stock, he buys from hand
to mouth; let the jobber hold the goods
and take the loss if a drop should come,
is his argument; the broker passes the
buck to the manufacturer, and the
manufacturer passes it to the packer,
and the packer hands it to the grower.
There you are. Nobody cares to have
any more money tied up in the business
than can be turned over readily as the
demands dictate. The grower is the
last in the line, and he has to keep the
buck until it begins to move at the top.
The Tobacco Leaf discusses this phase
of the situation as follows: At the
present time manufacturers are confin-
ing themselves to the purchase of only
such quantities of various types as are
necessary for their current require
ments. Leaf merchants state that
they see no particular reason for any
change in this policy for some time to
come Many are of the opinion that
the month of March may see some
the more rapid depletion of the limited
leaf reserves during the current month,
but even then quantity purchases for
futZce requirements are expected to be
lev and tar between Manufacturers
save the assurance at Least, that cigar
leaf prices will go no higher, and the
possibility of some shading in present
prices is very evidently more important
in hOI inf ha ,Lo+ L.
they may run in not being able to Sc
cure certain desired types and grades
of old leaf when needed. In short, the
time seems to be rather propitious. for
the passing of the buck in the matter
of carrying stock, and the manufacture
er has evidently decided to take ad-
vaht4ge OF it. His justification is
found in the fact that the cigar jobber
has adopted the same policy in regard
to cigar stocks, and the retailer in his
turn in his relation with tn" jobber So
there is plenty OF precedent for it, just
now Leaf merchants are far from
respondent over the present situation
and quite willing to play the game as
circumstances rule.
The question of the cost OF putting
up tobacco in association owned ware
houses is a matter of considerable in
terest this year when the probabilities
are that cooperative packing may have
to be done on large scale One of
the men in charge of a farmers ware
house that put up considerable packing
Of the 1918 crop stated that it had cost,
every item of expense figured, includ-
ing storage and taxes, about l3 per
cent of the sales value of the crop.
The returns on this crop were such as
to make the percentage seem low. A
packing of tobacco bringing so cents
per pound and packing bringing 25
cents pound will cost about the same
to handle, everything else being equal.
Five cents off for so cent tobacco rep
resents 10 per cent, and cents off on
25 cent tobacco represents 20 per cent.
The cost of handling per pound is the
safest and simplest way of arriving at
the probable cost of handling the to-
UdCCO III d CU-UpOIdClV0 way.
*xx
The increase in the price of cigars
since 1917, when the raise came -tobac-
co products being the last of all COM
modities to go up-in no instance ex-
ceeded go per cent. The increase in
the higher priced cigars ranged about
33 per cent. 1t is smoking tobacco that
has advanced highest, the increase
amounting in some packages to over 85
per cent. The war tax and revenue on
cigars runs from cent TO cents per
cigar, and 6 cents on each package of
20 cigarettes. An early drop in the
price of cigars is not to be looked for.
The slump i'll tobacco products for
December left the balance sheet for
the year with less of showing than
otherwise would have been the case.
rI<<vxy1 L - T-tN Il