The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-07-16
AND INSTEAD OF INCREASING
THEY REDUCED THE PRICE
OF CUTTERS.
TESTIMONY OF REYNOLDS TOBACCO co.
Immediately After the Trust Was Organized
Though the Tobacco Crop was 20 Per Cent
Short, and Other Tobacco Advanced
30Per Cent Tobacco Used by
the Trust Went Down to
10 Ceets per Pound.
10 Ceets per Pound.
(Southern Tobacco Journal.)

There has never been a trust formed
in the history of these iniquitous com
binatons, as i see it, that was justifiable
either in law or morals. Co-partnershlps
and corporations are useful and justi-
fable, in that they enable their members
to do what they could not do as individ-
llals in serving public end. The trust is
the expression of totally different prn-
cipie-the principal of greed, the love of
money for its own sake.
Look abroad and see who it is that has
organized trusts. Show us Il s-ngle firm
or corporation that was nut pJsp%.ng
in open competition befor, ti.e! lot To-
getler in a combination to increase tae..
profits by brute force. If there be ne
such, this writer has no knowledge .. II.
Struggling firms do not form trus;s.
neither are they invited to JOIN. 1t -
the big, strong fellows, with fat purses,
who form them. 1t it is the millionaires
like the Dukes, the Kimhals and the
Ginters who get together and reason ana
act on fIiis wise. Each of us has iliH
,ip a paying business. Our trale is es-
tahlished What's the use of trying TO
invade each others territory? And
what's the use of scrabling over the fool
farmers tobacco? He raises enough for
all of us. Now let's divide the markets
amongst ourselves and stop this non
sense. Well tell the farmer that we
are tired of buying tobacco from the
middle-man; that we are going on the
warehouse floor and give the planter the
money that has heretofore gone to the
speculator Yes, there will be Il howl,
but we can shell out to the colleges and
hospitals and orphan asylums and build
up Il counter sentiment
When the American Tobacco Company
was formed and the leaf markets We're
parcelled out amongst its members, this
writer was prompt to denounce it as Il
foul conspiracy and predicted that the
farmers would be robbed of their labor
by it, This was indignantly denied by
the Dukes, who wrote an open letter TO
the Durham warehousemen saying that
they had no intention of reducing prices:
that the cry against the arrangement
was inspired by the spectators, who
Were grieved to see their big profits go
into the farmers pocket. Instead of get
ting less for his tobacco, the farmer
would reasonably expect more. The let
ter IS too long to incorporate in full in
the space allotted to this article, but the
following extract will show its spirit:
There is no intention to lower prices Of
cigarette leaf on the warehouse floor
Had we desired to do this, we would
have limited prices. We are satisfied to
pay the farmer what his cutters have
averaged him the past five years; we can
really do this and make big money by
saving the profit of, say, eight cents per
pound upon two million pounds of cut
ters heretofore bought each year from
the spectators by our firm alone, to say
nothing of the amount saved by reducing
our expenses in buying and handling our
cutters.
Instead of lowering prices, we
believe the farmers will get more for
their cutters, but the trouble is the spec
ulators are growing because we wish to
buy on the warehouse floors and let the
farmers get part of the large profits
which MIR. Spectator has heretofore got
ten. All you warehOusemen have
to do is to bring the cutters to Diirham,
and the farmers shall go home satisfied,
if big prices will satisfy them"
So there was to be no reduction: that
much was an assured fact. The Dukes
could keep UP prices easily and save
money, say the 8 cents per pound they
had been paying the speculator, which. Of
course. the farmer did not get. How
was this promise kept? According to the
testimony of leading tobacconists on the
Winston. Reidsville and Danville mar
kets. which was printed i'm Webster's
Weekly in May. 1890. there was a decline
of % per cent on cutters on short
crop. while all other grades advanced
% per cent. The following inquiry was
addressed to the representative tobacco
nists on the markets above mentioned:
My Dear Sir: Kindly write me if in
your opinion this is a full crop of tobac-
co. If not, how much is it short?
Are the prices paid for all grades of
tobacco used on your market the same
as was paid at the beginning of the pres
ent tobacco year?
Respectfully, etc.
j. r. WEBSTER.
Winston's leading tobacconists, the X.