The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-02-18
CIGARETTE TRUSTS.
Withdrawal of the Tri-MOnthly
Rebate,
But the Consumer Will Have to Pay Five
Cents Package as HeretOfOre-sOme
Very Significant Figures.

GOOSGulGIS VI CIA dltALbS III ktito NAAJ
been vainly hoping since yesterday for a
reduction from the nickel price. In their
case hope is likely to be long deferred.
TIE hope sprang out of the vague rumor
that a split had occurred in the American
Tobacco Company. q trust which controls
the principal cigarette producers OF the
Union. II turned out, however, that the
fight is simply against the jobbers, and is
based on the withdrawal of a tri-monthly
rebate granted on certain considerations.
Said retail dealer who handles about
10000 cigarettes a month: THE price OF
cigarettes TO us has dropped from ST 20 S. so
a thousand We got a notification from the
American Tobacco Company yesterday
morning that they had stopped giving dOna-
tons to cigarette iObbers. 1t VIII benefit
the small retailers. The trust will not 90
under The fight was between the Jobbers
and the small retailers. The j0bbers used to
60 around with wagons in the outskirts,
especially In the Western \ edition and III
the Mission. Their agents sold the cigarettes
cheaper than the retailers could afford 10
do For instance, where the city retailers
were selling cigarettes at cents package
the huckSters were selling them at SIX Tor a
quarter. 1t was a narrow margin, but II
made all the difference.
THE REBATE WITHDRAWN.
The rebate which the tobacco trust al
lowed to regular tobacc0-deaIeTs is no
longer paid but what IS due us up 10 the
date Of suspension, a few DAYS ago, Will be
paid on April l. OF c0u Sc the trust 0ene-
htS by the arrangement OF keeping back our
money for three months without interest.
There are so many cigarettes used that
they can double their Investment, So lar as
we are concerned"
Questioned as to the consumption Of
cigarettes the dealer said: ~ on have not
the slightest idea of what 1t amounts 10.
Nearly all the sports, all the fallen women,
ali the men who 1--we off the earnings Of
those women smoke cigarettes right along.
| Then you must count IN the opium nendS,
FIR there are few Of them who don't smoke
cigarettes And you must reckon the boys,
the telegraph messengers and the hoods,
who all smoke cigarettes"
In reply to a query as to the profits to the
retailer on the sale OF cigarettes the follow
Ing figures were obtained: The profit on
one box Of cigarettes IS nothing; on many
it amounts 80 little: on a regular trade 10
comes back in other ways. Fifty packages
In one box Of 800 cost the retailer 81 ~ , per
box. For this box the retailer gets s. 90,
leaving a profit Of JI}2 cents Tor half
thousand or 81 10 thousand. There IS
superior brand OF cigarettes sold at 10 cents
box which costs the retailer s. 10 Tor 800 in
fifty packages. These retail al 50 OoX, leaY-
ing s. go profit. Lastly there Is a special
brand Of cigarettes put up In boxes at
twenty-five for s. and sold At 10 cents box.
A FEEEZE-OUT.
"The retailer cannot kick at such an ar
rangemeut" said The CALLS informant
"and any talk Of the bursting up Of the trust
Is all lies. Ihe trust IS simply freezing out
tie jObbeTs and seeking 10 deal directly
with Us. The chances are that as soon AS
the scheme works the suburban wagons
viii be Withdrawn. For look here. The
trust owns and controls about all the large
tobacco plantations In North Carolina, Viz
gina. Maryland. West Virginia and Ken
lucky. All the prominent cigarette firms
that were IN competition year ago have
come Into the combine.
AS the trust is now, it is always three
months ahead Of Us 1t has The use Of our
money without interest for that time. We
make little or nothing out Of cigarettes
The retail price is, after all, nearly down
10 cost We have 10 keep lots Of thing in
stock, on which there Is no pT0nt, simply 10
accommodate customers ana trust 10 chance
TO make up the rest. The trusts only seven
OF eight months old, bat it must have made
a lot f money in this city alone in that
time
A UNIFORM PRICE.
The manager for a prominent firm said
that the notification sent 10 the jobbers AS
to the suspension Of the rebate was the re-
suit Of 81 resolve by the managers Of the
trust Id aIGtl~L tICl4 tOAtl dtl7 Ail AiiE i d-
cihc Coast The contract system Of selling
goods has met with very general favor
among the jobbeTs and retailers, as 1t estab-
fishes uniform prices for their products and
has a tendency u stop the ruIH0us cutting
in prices on standard goods. IL Is no doubt
the intention Of the American Tobacco
Company at some future day TO arrange a
standard price for its goods. The Ljggett
* Myer, Tobacco Company, as we'll as that
Of Il. LOrillard & Co., have abolished their
contract systems. There Is not less than
S2l0l0O0J invested in the American To-
bacco Company. BY stopping the rulnous
photographic advertising Of cigarette girls,
etc, over 100000 was saved in the first
year.
All the retailers interviewed laughed at
the idea Of the tobacco trust being broken
up. The real reason Of the withdrawal Of
tie rebate IS said 20 have been that two
thirds Of the retailers neglected to make
application for IT, Tie retailers. on the
Otner hand say tn2t they can put their
mOucytO better use during the three months
Ia which the rebate is withheld.