The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-30
MEETING TODAY
OF THE WHOLESALE GROCERS TO
CONSIDER A GRAVE SITUATION.
The Continental Tobacco Company
Has Taken Action to Force Its
Product on the Market.

This morning the Indianapolis wholesale
grocers who are members of the Wholesale
Grocers' Association will hold a meeting at
the store of John L. Moore to discuss a
question of grave Importance just at this
time to jobbers Of tobacco in indianapolis
and every city in the United States. Cir
cular letters have been received in this city
and other cities by jobbers of tobacco from
the Continental Tobacco Company, which
governs the output Of the plug chewing and
smoking tobacco of the American Tobacco
Company, better known as the trust, which
carried some startling information to job
bers who are not In the Wholesale Grocers'
Association.
This letter states that on and after Nov.
30. 1899. the 10 per cent. jobbers' premium
on all plug chewing tobaccos, as well as
the 10 per cent. allowance on all plug smok-
ing tobaccos heretofore allowed will be dis
continued. Beginning Dec. ], the Continen-
tai Tobacco Company will sell these tobac-
cos on the basis of quantities less than one
million pounds per month, subject to a dis
count of 2 per cent. for cash in ten dag
only. In order to secure the 10 per cent.
tina has heretofore been allowed TO jobbers
it is necessary for a jobber to buy nine mil
lion pounds of tobacco in a month, provid-
ing tina he is not a member OF the Whole
sale Grocers' Association.
All untitled orders will be Cancelled, and
billed to the buyer according to the price
list issued Nov. l.
A GRAVE SITUATION.
This statement of the letter carries more
with 1t than II at first shows. 1t is said
TO be a combination Of the Continental To-
bacco Company and the Wholesale Grocers'
Association of the United States 10 prac-
tically freeze out of existence the mall
jobbers. and. furthermore. the tobaccos not
manufactured by the trust.
In another circular sent to members of
the Wholesale Grocers' Association by the
trust 1t appears that the members of the
association will get the benefit OF the pre-
miums and allowances formerly made by
the Continental Tobacco Company, provid-
ing the associations OF the country use
los. 0O0. 900 pounds OF tobacco from tina COM
pany during the year. II. d. Lee has been
appointed a broker 10 represent the men,
bers OF the associations. and the members
can order through his office in New York
and their orders will be put TO their credit
so that they will get the discounts. All
orders from member OF the associations
Will figure in an aggregate of the amount TO
secure the reductions. This new ruling will
affect the small Jobbers and wholesale gro
GERS who DO not belong TO the association.
and viii cause them TO get into the assocIa-
ton or go out Of business. They will not
be able to purchase tobacco from the Con-
tinental under the old scale of prices unless
they buy IN m~illion-pOund lots, and they
would have TO buy nine million pounds 10
get the usual 10 per cent. discount. There
Is no one buyer who could ever hin of
buying such a quantity OF tobacco. This
will mean that they will have to buy from
the Continental company at the same price
that they buy from the wholesale grocers
and tobberss and they can never do any
jObbing business. for they would have to sell
at the price they buy the goods for In or
der 90 dispose OF them. for any dealer can
get them OF the wholesale grocers At the