The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-04-22
TO BE USED IN ELECTINC NEW
DIRECTORS AT THE COMING
ANNUAL ELECTION.
MANY SIGNS OF THE MOVEMENT
Attack Cleverly Planned at Time Wher
There are indications Of Further
Combination.
(New York World.)

| DC Il llNcly row at Une annual meeting
of the Tobacco Trust, which will be
| held in Newark on May IL next. 1t is
commonly reported that a change of
i directors will follow the effort being
made by the Standard Oil interests and
| Oliver III. Payne, John G. Moore, Grant
| b. Schley and their allies to get control
of the stock of the trust before the an
nual meeting.
The transfer books of the company
were closed last Friday, but representa-
t;ves of the Standard Oil Trust were
making an active canvass yesterday of
| the stock commission houses for proxies
| to be used at the approaching battle
| for the mastery of the trust.
| Indications that the Rockefellers had
an eye on the rich profits of the Tobacr
60 Trust have been seen in Wall street
for a year or more. Their brokers have
been quietly buying the stock ever since
| it became apparent that peaceful So
luton of its trouble with the Drum
monds, Liggett * Meyer and the other
| big plug-tobacco concerns would bc
reached.
The foresight of the Standard Oil mag
| mates has been proved by the develop
ments of the past week. The proposed
formation of the Continental Tobacco
Company for the purpose of uniting the
warning companies in the plugtobaccc
trade was announced in The World Of
yesterday If the deal is perfected the
expensive war which has almost dis
sipated the surplus of the Tobacco
Trust and has eaten into its earnings
will be at an end The American To.
bacco Company is to be a party to the
compromise. 1t will surrender its plug
tobacco factories to the new concern in
there are interests in the management
Of the American Tobacco Company that
Relieve the trust is strong enough to
throttle all competition eventually
These men once held control over a
majority Of the trusts common stock
which was for years distributed
throughout the country in small lotsS 1t
was originally peddled out by the trav-
cling statesmen of the trust. 1t was
paying II per cent. dividends and the
tobacco dealers thought they had struck
"A gold mine. Thus it was that the Gin
siders" held control over the majority
of the stock. They had it where they
could put their fingers on it at any tim
and where they could vote it.
That was the condition Of affairs in
August. 1895. when Tobacco was paying
a II per cent. dividend on its common
stock, which was quoted at III. 1t had
accumulated surplus of $7,000,000.
The bubble burst almost over night
Suits under the antitrust alw were
brought in nearly every State, and sim
UNANIMOUSLY there came from every
quarter of the country rumors of n re-
bellion by t1e big wholesale grocers' as
ISOLATION against the trusts rebate con
| tracts: At this juncture the Tobacco
| Trust. which had gone into tho field OF
| plug tobacco. found the monopoly in,
| the cigarette trade threatened by for
| midable combine of the plug-tobacco
| manufacturers. which had been formed
| for the purpose Of fighting the trust in
| the manufacture Of cigarettes
| Cuts were made in plug tobacco ana
cigarettes until both concerns were &C.
tually giving away their goods. There
was a great crash in Tobacco stock. In
| twenty-four hours it dropped from III
| to 104. Then The quarterly dividend
was passed and there was another drop.
| The public completely lost confidence
| in the Tobacco crowd. and the small
| holders throughout the country took
fright also and dumped their stock on
| the market Under this pressure the
stock dropped and dropped, until it
| reached 81.
1T was at this time that the Rookie
| fellers and Col. Payne began their great
coup. AIS fast as tho little fellows
dumped their petty holdings on the
market they picked them mp They got
the stock many points below par. Then
the INSIDERS" gradually lost their con-
troll over the petty stockholders and
the opposition solicited its holdings.
Whether the Rockefellers. Col. Payne
| and Moore & Schley have actually got
| Il majority of the stock remains to be
seen Mt the coming annual election.
Both SIDES are making desperate eff
forts to get control of every share of
stock to be had
Investment buyers are being warned
by their brokers in Wall street to stay
out of the stock until after the annual
election at least. Much of it is in the
hands OF spectators. and it is proaIble
that it will be wildly manipulated dur
ing the next two weeks.