New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-31
CIGARETTE TRUSTS MOVE.
ALL ITS FACTOR AGREEMENTS ABRO-
GATED
THIS ACTION TAKEN BECAUSE OF LAWS IN
MANY STATES WHICH MAKE CERTAIN
CONTRACTS AND ARRANGE
A

MENTs ILLEGAL.
The American Tobacco Company, which embraces
a large majority Of the cigarette and TOBACCO
firms in the United States. has issued circui'''
wherein formal notice is given of the aoandohneh'
Of its factor agreement which formerly existed be-
tween the company and its customers. Inc rea-
sons for the change are set forth IN inc V,i0"'
which was mailed TO tobacco jobbers In all parts
of the country yesterday and reads as ioho"s'
In many States the Legislatures have recehtH
passed laws Intended make Illegal all con'Iac,s
and arrangements by which manufacturers et ,heU
comply with the natural demand OF o, ~
products secure TO them legitimate co, ND On
ton: such laws are calculated 10 5' td involve those
a constant state OF uncertainty a!iu While II
engaged therein in expensive htGauoi ,, W ~,
and in a test would so he declared by the courts
of final resort. yet during the progress od h uS"r
great loss and expense for these laws bear equally
on all parties to the contract or not he SO
Though the laws in your state may no. , 10 -
sweeping as in some others yet trade Is no1 pOu,V
by any imaginary lines and ror IN na It's eppicaon
defeats the result the dealer desired ,,, l., tho
interest of the trade generally we are ENGAGED now
in testing such laws IN several states anu Tts
~ Tho delays ANNOYANCE and expense OF lawsuits
We do not feel that should be expected 70 1nue
take to have adjudicated the laws 9d ar Inc Ina,
which have passed them, we nave uc..t MY f.,
in the face OF these laws which so seriously hHto
ro undertakes 10 bene, the dealer and
which involve YOU as well ourselves In their m
naars, and our own to terminate all arrangements
relating to the sale Of our products We 'herei4 i
date of our Contract with you relating 20 the con;
eIrr ynent of cigarettes and of the aDrosdllp anu
withdrawal of al conditions pertaining 10 inc s"'o
by you Of any OF our products.
A second circular. after giving the revised price
list for cigarettes. says:
II Is our hone that the success or our Dust
moss will warrant making donations or money
or merchandise 10 customers from tnc 20 tllnv
In recognition of their interest in distributing our
goods should we be abe TO carry out TINS lhteil-
lion The donation at first will be based primarily
anon the amount Of our products purchased ny you
direc; from us and secondariY upon the expense
70 us of maintaining the output OF our brands IN
your State. .s 49,. ,o,hir, horo,r
sbau he construed imposing any obligation upon
The cornany to make such donations, though II Is
our exneca alton that the condition OF our business
,brongb the efforts of the trade Will warrant our
doing So and II is also TO be understood that such
Sonafions may be altered in form or amount, or en-
tirelv discontinued. at any time without notice
The factor agreement was an agreement between
the tobacco company and the dealer cac'orl
rrherehy the dealer by handling the goods OF no
Cher company received rebate on the sales by MN
81 goods furnished by the American COMPANY Win
out the rebate Il practically impoSSlbe i0r a
dealer 10 handle the American companys goods at
proft. -, ,- -r.N.... 1,o,,,o,,. ad
vanced yesterday 122. but closed at a. the same
as Monday.