Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-02-10
may DO slIowei on previous purchases viii b
tcut nt tho reguisr periods.
The AnKkicIN TOBACCO COMPANY.

may DO slIowei on previous purchases win b
TnE AnEmcAS TosAcoo COMPANY.
The same telegram WAS sent to 1850 OF
more joooers IN all parts OF the country
The American Tobacco Company was
Incorporated about two years ago under
the laws of New jersey. 1t was capital
izei Of Si5.000.00o. and last Septeiaoe
THIS capitalization was increased 20 Ss9,-
OK, 900. The combination included all the
leading cigarette manufacturing houses ~
the country: They are these ar NJ.
Alien * 0inter, Richmond; w. Duke
Sons & Co.. Durham, n. G.. w. Duke,
Sons d Co., New York Kinney Bros. Now
York; w. S. Kinbsll 4 Co., Rochester;
Goodwin g. Co., New York; National To-
lacco Works. Louisville; the Whitlock'
Richmond; Aarburg Bros. baltimore; W.
w. Gail i Ak. Baltimore.
NO RESTRICTION.
When the company was formed, the
popular brands of the fve-cent cigarettes
we're selling for $3.50 thousand and
there was no restriction to prevent the
dealer from selling at any price he chose;
Ihe American Tobacco Company RACED
the price TO $50. so o thousand, but granted
a rebate OF is cents at the end OF SIX
months and another rebate OF 10 cents et
tho end of twelve months. Last October
the company raised the price OF cigarettes
10 81 a thousand. granting. TO loooers .ne
same rebate as before and TO the reteiier
Q, cents al the end of six months and an
other Is cents at the end of twelve months.
There will, therefore. be due tothe Amer.
can Tobacco Company's patrons on hprii
lst rebates for the past SIX montns,
amounting 10 hundreds OF thousands OF
dollars.
Inc words of the telegram rebates
which may be allowed on previous pur.
chases." created considerable furry. III
was ct first thought that the company
meant 10 cancel some or all of these re-
bates. Al the Office OF the company, 40
Broadway. il was stated, however, that
the company had no such intention.
JoDn Bakesly, cigar dealer at 233 Broad
way, was figuring up the difference III the
cost of cigarettes to himself when re-
porter called.
A BIG DIFFERENCE.
Under the old terms" ne said. lit cost
mo as n iobber and retailer for cigarettes
under Sc a thousand. 1912. Under the
present arrangement 1T will cost me 1913,
a difference of 81 cents. The high-priceu
cigarettes cost me as IoDoer ana retainer
S5.i2 before, and will cost me So.l. now,
a difference OF 70 cents. These hgufes
sneak for themselves. AS TO the retailer
amply the case Is PLAN. He now pays -
n thousand and gets q rebate OF 90 cents.
nenceforth he must pay $3.50 thousand
and get no rebate. That means TO MN
loss of 30 cents"
Frank Miller. Of l.. Miller IL Sons, gop-
bers. IA Chambers street, said his hrin
woill not be affected one way or the
Other. lit Is the small Jobbers and the
retailers who will be affected the most,
be sad those OF the jobbers who are
n the ms do J. get the rebate ID 't the
sa le. ne company cannot AFFORD 10 ie-
more item. Ine company has got 10 Keep
on the right side Of the big dealers, anu
nOboug understands that better than the
company" .u:
A,tAe Office OF the company the ,presi-
dent. James Il. Duke. detailed subordi,
nae 10 sleak m his behalf. The rebate,
sald Mir. DuXe's representative. was Al
WAYS ,o.untary on ourpart. IL was reaiIy
a rratuity. e amounted to form OF ad-
yertIslng. Though by ITS terms we were
never obliged TO pay II. we always aid so,
and shall continue to pay 1T on all pur,
cnases made up 10 this time. We found
that the plan was not appreciated, as com
paratiyelv few of the dealers saw mt TO
take advantage OF 1t. As we found that
We were beneitting part instead OF the
whole of the trade. we decided to discon-
tInue the practice"