The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-12-10

count OF its manner OF dealing with them.
dealing with its jobbers. Its system in the
past has been one that would prevent any
one making any money. handling its cigar
made, which would prevent the .jobber from
handling the goods of any rival. The trust
will sell to jobbers for cash only. and then
the jobber must take a certain specified
amount of goods at one. time. for which
he pays the full price that he receives from
he certes that he has Complied a With the
terms OF his contract with the trust, ne
receives rebate Of 10 per. cent. on the
buy from him he pays, through the trust.
a rebate of per cent, IL they handle no
other goods. but only 2ls per cent: II they
When this new agreement went into erect.
about Oct. /, the jobbers who get their
ing circulars to all jobbers to whom they
had been selling:
Under new agreement. IN erect Oct. l,
1895, made by the American. Tobacco Com
pany with all jobbers of their cigarettes.
ii becomes necessary for US to make
new application for the privilege OF issu-
TO whom we have been in the habit or fssu-
ing such certificates under the old contract
The new conditions permit or our ISSUING
two classes of certificates (after receiving
II. To such dealers as agree to handle
only the cigarettes made by the american
compensation will be a certificate calling
for per cent. of the net cost OF cigarettes
purchased.
'.2. To such dealers as handle not only
the cigarettes made by the American To-
bacco Company, but also brands manufac-
tured by other cigarette factories, to such
the extra compensation will be certificate
calling for 2is per cent. of the net cost OF
American Tobacco company's cigarettes
1T is. therefore, necessary that you ad
wise us promptly regarding the facts In
these two instances as far as IL bears on
your method of handling cigarettes. Upon
receipt of your reply We will be pleased 20
make new applications or the American
Tobacco Company for the privilege OF Keep
ing you on our list and viii advise you as
soon as we receive reply from them. We
can issue, no certificates hereafter until
these conditions are complied with.
CUTTING THE PRICES.
The Liggett & Afyer Company's cigar
cites were placed on the market at
straight reduction to the consumer Of 20
per cent. This was accomplished by put
ting bright new penny in each package.
The Treasury Department has recently
taken this matter UP at the instigation, it
is claimed, of the trust people. and few
days ago ruling was made that, while the
penny In the box was not direct viola
ton of the revenue laws, IL. was really a
violation of the spirit of the laws. For
this reason the penny will not be put in
any more Of them, but the same result will
be accomplished by putting little slip of
paper in each box that will be redeemable
at one cent by any dealer, who can use
them in payment of his accounts with the
manufacturer or can return them and get
the cash they call for.
The new Liggett & Myer cigarette has
been introduced in this city by liberal
distribution OF them to dealers free. Every
retailer in town who would accept them
has been given a box containing ten five
y,<.s rsn1d
his customers as he may desire. In this
way they have been smoked by most of the
cigarette smokers of the city.
this market until yesterday. but a liberal
campaign will be made here for business.
In short time the Lorillards, of Louis
vile, will have their new cigarette I'm this
city. p. j. Sorg has not yet decided to
enter the fight, although he was I'm the
agreed to fight the trust. He said he is
waiting to thoroughly examine the merits
of the various machines on the market,
With all these facts ii is no wonder that
the trust stock dropped sixteen points
when the announcement was made that the
been II per cent. annually. would be
passed. Mr.. Cook, mead OF the tobacco de-
partment of Sprague. Warner & Co, of
considerably higher than the estimate in
this article, is quoted in the Chicago Times
Herald as saying:
had its inning, and has led the trade for
the last five months in the sale of plug
tobacco. IT is barely possible the opposi-
ton may have inning in the next three
or four months. The American Tobacco
Company has lost $30e0,c00 to sI,o00000 on
it's sales of Battle AK within the last five
months, but it is a question whether Ii
has not recouped by manipulation of the
stock market. When a plug tobacco firm
of, say, S,O00.000 capital. can pay dividends
of $4,000 and similar amount for ad-
vertising it's goods, within a single year, 1t
certainly leaves q wide opening for an ag-
gressive concern like the American Tobac-
CO Company The standard money-making
brands Of both parties to the fight will
probably not be cut, but I expect to see
a sharp fight ahead on the new brands.
The plug tobacco men will find ii as hard
to popularize new brand of cigarettes
a new brand of plug. The average cigar
cite smoker is averse to change"