The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1891-12-17
THE DAMNABLE POLICY OF THE
AMERICAN TOBACCO COMPANY.
Winston Tobacco Journal

Winston Tobacco Journal.
Until the recent trouble in Calves
ton, Texas, between the jobbcrs of that
city and the American Tobacco Co.,
this paper had adopted the rule of
taking little notice Of the cigarette
trust and its owners. We looked
upon the concern as a strong business
corporation which would, in all proba-
Dlllty, carry on its traffic in a business
ike manner. So long as it made
goods and sold them "straight," we
saw no reason forfghting the concern,
and no victory in sight, even if we
did take up the cudgel against the So
called anaconda.
But things have changed within the
last thirty days, and the American
Tobacco Company has shown its hand.
1t IS now clear to every one just what
the trust people intend doing. Their
policy has been definitely defined, it
clearly presages danger to the entire
trade, and the Southern Tobacco
Journal proposes no longer to daily
Win a danger which must be grappled
and fought by united people and a
united press.
What are the relations? For some
time the trust has been endeavoring
to compel the wholesale merchants of
Galveston to handle its tobaccos ex-
ClusIvely. The concern now puts up
full line of plug, twist, fine cut, long
cut, granulated tobacco and cigarettes.
On the latter class of goods, as all
know, they have a complete monopoly
being owners of the only cigarette
machine now in operation. The COM
pany has capital of SIS, 900, 900, and
could double its capital stock in a
short while, if it SO desired. Possess
ing such power, it thinks it can dictate
to the entire jobbing trade. 1t told
the Galveston jobbers that they must
sell American Tobacco Company's
goods exclusively, or sell none of them
at all. This placed the jobber in an
awkward position for it IS through the
American Tobacco Company alone
that he can get cigarettes-a line of
goods which is almost indispensable
to his trade. The company. finding
the Jobbers slow to accept its terms,
1t makes the threat even stronger by
telling the Galveston merchants that
unless they handle trust goods alone,
the company would put its goods on
that market at a ruinous low rate and
thus force its own terms. The mer-
chants still holding out against these
overbearing demands, Buck Duke and
his crowd of New York office holders
made pilgrimage to Galveston them
selves, thinking that their august pres
ence among the jobbers would have
some influence. They even made the
threat that unless the jobbers would
accept the trusts demands, the Amer
lean Tobacco Company would spend
one million dollars to force them into
line, and would even give away to-
bacCo and cigarettes in Texas.
This is the new policy of the Amer
lean Tobacco Company-or the old
policy, rather, only put in practical
shape. 1t shows that the trust intends
to dictate to the jobber. 1t shows
that the policy of the company is to
weed out the goods OF every other
firm in this country and take entire
control of the tobacco trade. Looking
at the action of the concern in Gal
veStlon, We can come to no other con-
Clusion, and therefore we say it is time
for the trade to open its eyes to the
danger before it is too late.
See what the American Tobacco
Company has already done in this
State. 1t has reduced the cost of
cutters fully 40 per cent. saving of
more than a million dollars in the
purchase of tobacco alone all of which
comes from the pockets of our planters
and directly affects all lines of bust
ness in the State. We now hear it
stated that next year the cutter buying
is to be concentrated in few towns |
of the State. This will kill the young |
markets from which the cutter trade |
is taken, and still be more money in
the pockets of the trust people, but
III got gains are dearly bought,
And retributiOn sure will come
GO What are you going to do about it? p
Buck Duke says, as he smiles at the /
power of his company. Well, Mr..
Duke, we are going to do the best we
can under the circumstances. The |
life of North Cardinals trade-the
handspring of her business-iS To-
BACCo. The American Tobacco Com
pany has already struck the leaf trade
a severe blow, but now, with its Gal
weston policy, it aims a deadly shot
at our manufacturing interests. Hi
the jobbers should accept the demands
made by the company, North Caro-
lima plug would go begging before two
years. If the johbers allow themselves
to be ruled by the the trust, our pros
Derous factories would be closed and
our manufacturers looking for an occu-
patton. /