The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-05-22
THE BIG TRUST STRUGGLES
AMERICAN TOBACCO CO. AGAIN
CHANGES ITS POLICY.
The Third Change of Front Since the
Trans. Missouri Decision Of the
Supreme Court.
(New York World)

The American Tobacco Company,
otherwise known as the Tobacco Trust,
has veered off on another tack. It's op-
pOnents, encouraged by what is known
as the Trans Missouri decision of the
United States Supreme court and the
finding of United States Circuit Judge
Gibbons, of Illinois, reported in the
World last Sunday, are preparing for
more active warfare.
The trust has sent out circulars and
price lists, taking effect May 10, which
not only increase the prices 10 per cent,
but add to cigarettes, which formerly
formed the only merchandise covered in
what was known as "the consignment
agreement" all other goods manufac-
tured by the company. The circular,
which reads as follows, has caused con-
sternation among the jobbers:
Dear Sirs: In addition to our circulars
of April II and q, 1897, relative to the
payment of 10 per cent. on purchases of
plug tobacco and cigarettes, we have now
to announce that our prices for our other
products will be as per inclosed lists. tax
ing effect May 10.
On July l. or as soon thereafter as
practicable. we will pay ten per cent. on
purchases of the products named on in
cluded lists from May Is to June 80, both
inclusive, and every sixty days thereafter
until further notice, we will pay 10 per
cent. on purchases from us during each
such period to customers who we are
satisfied have not in any manner dis
criminated against the sale of any goods
manufactured by u.s.
We have thus placed all of our pro-
duets Cncluding brands not mentioned
in inclosed lists upon uniform basis as
above.
No employe has any authority whatever
to change or modify this or any other cir
cular, letter or price list of this company.
Very respectfully,
The trust has changed it's methods
three times since the trans Missouri de-
ciSion.
First, it revoked its consignment agree
ment. In it's place it announced that it
would make donations every three
months. This was so unsatisfactory
that it was superseded by the statement
that rebate of 10 per cent. would be
paid every three months. This was fol-
lowed by the circular given above, but
dealers fail to appreciate where they are
to be benefited by a rebate of 10 per
cent. when there is similar increase in
the price list.
The wholesale grocers of seven south
ern States will hold meeting in Nash
vile early next month to take action
against the American Tobacco Company.
These grocers associations have long
been im;mical to the company and op-
posed to it's methods, but were COM
PEELED to obey its mandates, or lose n
very valuable part of their business
But of late there has been such an
uprising that the meeting has been
called and drastic measures against the
trust are to be adopted.
1t is proposed, among other things, to
boycott the goods of the American To-
bacco Company, and also to seek legis-
lative action against the trust which
will operate to restrain the company
from doing business in such States.
Directors George w. Gail, William A.
Marburg and Louis Ginter have re-
signed from the tobacco company's
board within the last month.
The indictment charging the officers of
the American Tobacco Company with
misdemeanor has been peremptorily set
for trial during the first week in June
in General Sessions.
The decrease of more than $3,000,00 in
it's surplus last year compared with the
preceding year. the adverse decisions of
the courts, the belhgerency of the whole
sale grocers, the activity of the tobacco
manufacturers not in the trust and the
general dissatisfaction among jobbers are
believed by its enemies to presage the
early dissolution Of the Tobacco Trust.