Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-04-01
FAVOR THE CHANGE.
CIGARETTES DEALERS CAN NOW
HANDLE ALL BRANDS OF GOODS.
FULL TEXT OF THE CIRCULARS.
One Deals WITH Recently Passed
Laws Regarding Trusts and the
hates I'm Cash or Merchandise.

The circulars issued Dy the American
Tobacco Company, which were alluded TO
exclusively I'm yesterday mornings Dis
patch. are considered by the retail to-
bacco dealers here TO be in the nature of
q concession to them. Heretofore hand
lers of cigarettes have been compelled TO
act as agents for the corporation If
they wanted to handle the goods Of tho
American company manufacture. The
company has now announced that here
after its cigarettes and tobacco may be
bought outright, and all existing con-
tracts affecting the independence Of its
customers are annulled.
In recent years the American Tobacco
Company has refused, as told in yester-
days Dispatch, to sell goods outright 10
the dealers. Its method was TO ship on
consignment, and at the expiration Of
each quarter give a rebate Of 10 per cent.
on the amount Of sales; that IS, the ship
ment was billed at the selling-price and
a rebate Of 10 per cent. was allowed at
the settlement
Under the old agreement dealers who
represented the American company were
forbidden to handle the products Of rival
concerns.
THE CIRCULAR LETTERS.
Under the new system the dealers in
cigarettes Of the American company buy
their goods outright. and without restric-
ton. Below are given in full the circulars
Just issued by the trust.
The American Tobacco Company,
5O7 to 529 west Twenty-second street.
New York. March y. 1891.
Dear Sir.-In many States the legisla-
lures have recently passed laws intended
to make illegal all contracts and arrange
ments by which manufacturers seek to
comply with the natural demand Of deal
ers i'm their products TO secure TO them
legitimate compensation; such laws are
calculated to keep the Trade IN constant
state Of uncertainty and to involve those
engaged therein I'm expensive litigation.
While il is probable that all such laws
are unconstitutional, and, in test. would
be so declared by tbs courts Of final re-
Sort yet. during the progress OF the htl-
cation, the manufacturer ana dealer
would suffer great loss and expense, for
these laws bear equally on all parties to
the contract or arrangement
Though the laws in your State may not
be so sweeping as in some others, yet
trade is not bound by imaginary lines,
and for that reason any arrangement
that is not general i'm its application de-
feats the result the dealer desired.
In view Of these considerations, ana
that, In the interest OF the trade general
| Is. we are engaged now in testing such
laws i'm several States, and because or
the delays. annoyance, and expense OF
| lawsuits we do not feel that We should
he expected TO undertake 10 have adju-
dicated the laws Of all the states which
| have passed them. we have determined
that. In the face Of these laws. which So
seriously affect the permanency of any
arrangement by which the manufactures
undertakes to benefit the dealer. ana
which involve you as well as ourselves in
| their inconvenience and penalties, it is
proper. in your interest and our own, TO
terminate all arrangements relating TO
the sale Of our products. We therefore
respectfully notify you of the termination
ON this date Of ours-,ontract with you
relating 10 the consignment Of cigarettes
and Of the abrogation and withdrawal OF
all conditions pertaining TO the sale by
YOU of any OF our products.
we shall. however, be pleased y sell
YOU our cigarettes as per prlce-iat en-
closed. Prce-list of plug tobacco VIII be
sent under separate cover.
No employee has any authority what
ever 20 change or modify this or any otheT
circular. letter or price-list OF this com
pany. Very respectfully.
THE AMERICAN TOBACCO COMPANY,
j. Browne, Secretary
THE PRICES AS QUOTED.
The American Tobacco Company,
5O7 10 529 west Twenty street,
New York, March %, 1887.
Dear Sr-From and after this date
until further notice. the prices or our
cigarettes will be as follows:
pichr,ond straight cut ............... s. 30
,rba Per ....... ................ -
S-,oot ConoraI ........... ........... 81
,,,r,iria i,rigbts ..................... so
-, - - ,,..t,,i,,, ........ 3 50