The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-02-28
SUNDAY,
HOW, THE CIGARETTE TRUST
ROBS THE FARMER.

We are told every now and then that
trusts actually have reduced the price
DO consumers of the products they con-
troll. For example they say that sugar
and cd, the supply and price of which
are controlled by trusts, have been cheap
ened They say that in 1879 the price
of sugar was S.7S5 cents pound where
as it has now been reduced to 4.539 cents,
and that oil has been reduced from PSI
cents per gallon in 1871 to 6.8 cents.
These figures seem ''posers'' when hurled
at you by the high-prieed defenders of
these enemies of the people.
1t is true that the price of products
controlled by some trusts are cheaper
than twenty FIVE years ago. But they
have not declined in proportion to those
things in which there has been eompeti-
ton. The New York journal writ
ing along this line says:
1.-THE difference between the present
cost of trust products and the pre-
sent cost of products of free com
petition, with regard TO former cost,
can be accurately measured. 1t is
precisely the amount OF nine-tenths
of the private fortunes of Messrs.
Rockefeller, Havemeyer, ct al.
When the Cigarette Trust was form
ed this paper took the ground that, having
largely destroyed competition, it could
buy the farmers tobacco at its own
terms Webster's Weekly, published in
that this was the actual result of the
formation of that trust. In its issue this
week, Webster's Weekly says:
eve have proved by as good men
as North Carolina or Virginia afford
that the Trust reduced the price of
cutters the first year it was organ
lied from 20 to 80 per cent, and it
would be easier to prove that it has
kept the price down every year since
its organization and has absolutely
forced hundreds of smaller dealers
out of the business"
Letters were published from such lead
ing tobacco men as e. G. Mosely Il Co.;
and w. ". Shelton, of Danville, Va;
It. r. Penn & Co., and j. FL. Redd, of
Reidsyille: and r. I'll. Hanes & Co, and
The r. J. Reynolds Tobacco Co., of Win
ston-aH testifying that the organization
of the Cigarette Trust had reduced the
price of cutters in its first year, though
the crop was twenty-five per cent short.
p. Ell. Hanes & Co, said that sail grades
of leaf except cutters have advanced
since October, 1889 about % to 30 per
cent. There has been decline in cutters
of about 20 to % per cent" The II. j.
Reynolds Co., said:
"We think the present crop lacks
at least 20 per cent Of being a full
one AN grades of tobacco sold ON
this market have advanced 30 per
cent since the beginning of the pre-
sent tobacco year, with the exception
of cutters, and they have declined
from 5 to 10 cents per pound,
according to quality"
The difference between the price the
farmers ought to have received and the
price they did receive can be accurate
ly measured. lit is precisely the amount
of the excess of profits. over what they
cleared as separate firms, made by the
Dukes, Watts, Aliens, Ginters and the
other members of the Cigarette Trust
since it's organization.
Early in the session Senator Ray in
troduced sweeping antitrust bill.
Is this Legislature subservient to this
and other harmful and iniquitous
trusts as well as to other corporations.
We shall see.