The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1922-02-03
NOTE BOOK SKETCHES

american TOBACCO Co., LlggotC q N.Y.
ers and P Lorillard Co., alleging that
these concerns have engaged in con-
spiracies with numerous jobLers' asso-
Citations in order to keep the prices of
manufactured tobacco up while the
growers of tobacco suffered big losses
due to fall in the price of the leaf, are
agitating the tobacco world. These
charges are made by the Federal Trade
commission in report to the u. S.
senate setting forth documentary evi-
deace to prove that the alleged con-
spiracy existed in violation of law. The
companies concerned, through some of
their leading men, have stated that the
allegations took them by surprise, and
they deny that since the dissolution act
of 1911 against the old Tobacco Trust,
any collusion has existed having as it's
purpose to circumvent the law, or con-
spiracies entered into of the nature al
legged by the commission. Percival S.
bill, president of the American Tobac-
co Co., F. L. Fuller, counsel for the p.
Lorillard Co., and c. G. Dula, president
of the Liggett & Myers Tobacco Co.,
while most reticent in expressing an
opinion until the matter has been gone
over, are unanimous in their expression
of surprise at the move made by the
commission. The R. j. Reynolds To-
bacco Co., North Carolina, is given
clean bill of health by the commits
sion. The report to the senate goes in
to detail in substantiating the allega-
tions, which are written in six lengthy
paragraphs. Whatever the outcome of
his contest may be, it is likely to serve
the purpose of defining more accurately
than present statutes do what are ille-
gal combinations in the economic and
trade world. Labor unions, farmers
cooperative organizations, understands
ings among businessmen as to what
shall be considered fair profit on GER
tain articles offered for sale, as we'll as
these larger combinations to keep up
the level Of prices, ought to find out
what sort is legal and beneficial COM /
bination, and what is illegal and mimi
cal combination
***
The Federal Reserve board reports
that certain types of tobacco for ex-
port are having satisfactory demand.
The restoration of economic stability in
central Europe would hasten the day
when these nations again would be ac-
tive consumers of American products,
including tobacco. TO the producer Of
agricultural raw material the bank
ruptcy OF Germany, or any other Of the
larger nations, would be a calamity.
Trade relations of nature TO facilitate
as nearly as possible the freest ex-
change Of materials between Europe
and America and tariff program with
that end in view should have the sup
port of all Americans of the producing
class.
**#
The five-cenf cigar again. Here is
an opinion taken from Tobacco Leaf:
The domestic filler market is still
dead, or nearly so, but holders Of desir-
able Ohio and Pennsylvania tobaccos
are far from downcast over the out
look. AS the prospects for the return
OF the fivecent cigar, or something at
least approaching the five-cent cigar of
other days, loom more and more i'm
posingIy on the horizon of cigardom,
quite naturally the future Of domestic
filler types is potentially improved
While freely admitting that the eight
cent cigar may have lost ground during
the past twelve months, no one in the
cigar leaf business is inclined to the be-
lief that the outlet for the raw mater
ial market has been permanently i'm
paired for this reason. The announce
ment by one large manufacturing con-
cern, with widely distributed eight
cent brand, of the launching of a new
five-cent cigar furnishes an interesting
example of some of the developments
in the industry which may take place
in the next twelve months. These de-
velopments are interesting from num-
bee of different angles, and by no
means the most interesting slant is that
OF the leaf merchant.
*~*
In the same strain an editorial in To-
bacco discusses the proposed tariff in
crease on imported leaf as it would eff
feet cigars of any price. 1t says:
Here is the situation in nutshell:
Any increase in duties will unquestion-
ably be reflected in corresponding in
crease in the cost of raw material. The
public will not pay more for cigars and
the trade margin is now so small that
no increase IN cost can be absorbed
Will Congress seriously ask the cigar
manufacturers of the country TO try the
experiment of cutting the wages paid
the workers in the industry, or of ask
ing the farmers of Massachusetts, Con-
necticut, Florida, Georgia, New York,
Pennsylvania. Ohio and Wisconsin to
accept lower prices for their cigar leaf
tobacco?
To this the answer is simple: A re-
duction in the price to the producer be-