Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-08-16
RIG TOBACCO COMBINE.
The Plug Manufacturers Against 'he
American Company.
CNow York World. i5th)

(New York World. l5thJ
Representatives OF the National cigar
cite and Tobacco Company yesterday met
John T. Drummond. Colonel Wetmors'
and Mr. McAlister, who represent the
Drummond Tobacco Company. LlgSett
Myers. and other big western mahuiao-
turers OF plug tobacco. They talked Oh
selling cigarettes and all other TOBACCO
manufacturer In competition WIN inc
American Tobacco Company ana Hghu"s
IL on its own lines.
Tire American Tobacco Company. not
satisfied with it's monopoly OF thc c'sa'
cite and smoking-tobacco TRACE, psan
year ago to buy plug factories III ~ ~,
Vile. Cincinnati. and other western e",e''
,,i,h the burmese OF controlling this I'M
nor,ant branch Of the tobacco trade.
They flooded the market with their
nroduct at a price below the cost Oh man
ufacture Dealers who were heIu HeiP''9'
in tho clutches OF the Tobacco trust welc
forced by 1t TO put these gooos on ~
counters IN preference to the o'u,esViD-
Ilshed brands OF the Loriilarns' DiuiIl
rnonds. Iiegett 81 Myers Melsslnsets' anu
other leading manufacturers. The latter
could not compete with the trust singly.
They supplied plug tobacco alone. which
they found they could not manufacture
al the price the trust could put II on the
market The loss the trust sustained on
It's plug Is more than made Up on us
cigarettes and smoking tobacco.
IL was found that "A combination OF the
plug manufacturers alone could not sue
cessful.y fight the trust. as the jobbers
and dealers would be still forced 70 pur-
chase their other tOblccOs from the Amer
lean Tobacco Company. which would re-
D. 1r4FI
its plug toD8ccos.
Negotiations we're then begun with the
National Cigarette and Tobacco Company
with i view Of forming a combination.
IL Is proposed 10 unite the different IN
terests and 60 into the market prepared
TO supply the jObbers and dealers with all
the staple articles Of the trade. The trust
will be fought with its own weapons
Liggett & Myers own the largest plug
tobacco factory In the world. a few years
ago the First New Jersey Internal-keVe-
nue. District In which is located the
Iorliiard factory sold more tobacco
stamps than any other district in the
country. The Lorillards made plug, smok-
ing. and fne-cut chewing-tOb2ccO. They
pushed their business. Tney gave dealers
who bought Of them scales, plug-tobicc0
cutters. cigar-cutters. and other gratulties'
which were appreciated.
IL is about dozen years since II was
realized by the LOrillards and other big
concerns that they had formidable rival
in Liggett & Myers. There were signs
that Drummond was growing. too. He
was more conservative. Both grew rapidly
and the ST Louis lnternal-Reyenue DIS
trict passed the First New jersey IL sales
OF stamps.
Liggett & Myers introduced the rebate
system. Dealers who bought Of them
/. and did not buy Of the LOrillards got 4
rebate, which made the net cost Of goods
much less than the cost OF competing
goods.
There has been no war between Drum
mond and Liggett K Myers for several
reasons. II is natural That they should
be allies, now that they are threatened
b. a great enemy.
The combination will agree 20 furnish
thu dealers with cigarettes. smoking ana
cnewing-tobacco at prices as low as. or
lover than. the American Tobacco Com
pany. and will refuse 10 sell to any one
who deals with the trust. though the
jobber may freely purchase from any
other source, independent OF the trust.