The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-18
SOME ECONOMIC QUESTIONS.

Our discussion on Sunday Of the prin-
ciples which are to be applied TO combina-
lions OF capital is opposite in view of
the testimony now being taken and pub
llshed in the movement against the Amer
lean Tobacco Company, in New Jersey.
where the corporation was chartered. The
case which is sought TO be made against
the company, and which the evidence
seems 10 make against 1t, is that it re-
quires all dealers who handle its goods to
sign a written contract that they will
sell no cigarettes except those OF the
American Tobacco Company, and that
they will not sell these below a price
which is fixed by that company. 1t is
claimed that the first condition tends to
keep the price Of cigarettes higher than
they would otherwise be, and that the
second, by reason of the American To-
bacco Company's enormous means and
connections, monopollzes 10 itself and its
especial agents the whole business Of
selling cigarettes, which should be open
TO the entire public.
The Times has no interest of any sort
whatever in the American Tobacco Com
pany. direct or indirect, but The Times
has very deep interest in seeing all
economical question like those raised
in this controversy correctly settled.
Let us suppose that both claims as made
are true Is there anything then, in
either Of which the public has any right
TO complain? If the American Tobacco
Company has been able to spread its bust
ness. by the legitimate methods Of COM
petition. and, with no assistance whatever
from the laws or public authority until
Il Is able 10 dictate the price at which
its own cigarettes shall be Sold is the
public thereby injured and has the public
thereby acquired a right TO lay the hand
OF public authority upon its business
and command IL TO sell up to a certain
price but under no circumstances to so
above a.?
II we concede TO the public the right 10
do this with the American Tobacco Com
pany. we can conceive of no principle
which would forbid public authority TO do
the same In respect to any other indi-
VI oiiS bNltl bhNiHtSot anu IL llldl
be conceded 20 public authority, then the
whole OF the Socialists case is conceded
TO him. and government Is the supreme
arbiter OF all business. and may prescribe
10 the hardware merchant at what prices
he shall sell hoes, and TO the dry goods
merchant at what prices he shall sell
calico. For one we can never agree to
any such proposition.
The same line OF reasoning applies with
the same force TO the other complaint.
IL the American Tobacco Comp ny has
been able 10 force its business up in the
world by its own efforts In legitimate
competition 10 plane that enables it to
say TO a dealer. "You shall not have my
goods TO sell II you sell the goods OF other
manufacturers. we can see in this moth
ing but one OF the natural and legitimate
rights that accrue 10 successful business
even though II has the effect OF cutting
many men out Of an opportunity TO make
living by selling cigarettes who would
otherwise be able 10 do this. In both
cases the compar oly does what IL
pIeases with It's allows those to
sell It's own goods prefers. and il
puts price upon les own goods that
suits II.
Nor. In our opinion. is the public in
jured, upon the whole. In either case.
II 10 absolutely necessary to the Ameri-
can Tobacco Company. doing successful
and profitable business. that II shall have
q SUFFICIENT number OF subagencies for
distributing It's manufactures to get them
quickly to those who use them. We can
rely. therefore. with confidence. on AS
many agencies OF this sort existing as
che business requires. When that num-
ber exists. " not every enc that ID added