The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-07-01
THE TOBACCO COMBINE
VIRGINIA AND NORTH CAROLINA T0BAC.
co MEN ARE ALARMED.
The Farmers are Startled, Frightened and In
dignant. Effort Will be 10 Make Other
Tobacco Markets Tributary or
to Destroy Them.
Baltimore SUM

Danville. Va. June 29-The forma-
ton of a trust with million dollars
capital, three fourths of which comes
from unknown Northern and English
capitalists to control the leaf tobacco
warehouses of Danville and the sale Of
all leaf tobacco raised in the great bright
tobacco belt of Virginia and the Caro-
linas, continues to be the principal topic
for discussion and comment In this en-
tire section of the country. This is but
natural, inasmuch as bright tobacco is
the one overshadOwing money crop In
this region. Tobacco is the principal
industry of Danville and its neighboring
towns. All the bright tobacco grown
one hundred to two hundred million
pounds annually. is sold at auction III
the warehouses in Danville and about
% smaller towns in Virginia and North
Carolina, Danville being the central ana
largest market, the sales here annually
reaching 100000 pounds. For nearly
half century this warehouse system
has been operated with success. and the
relations between the farmer and the
warehousemen have become very nti-
mate, the latter being, in fact. the farm7
er's agent to sell his product TO the
manufacturer, the foreign buyer, the
SPECTATOR etc. The warehouseman has
ever posed as the farmers friend. stand
ing between him and all outside foes, and
especially protecting him against trusts,
mGnopolies and combines.
Now that the warehOuSeman has gone
into a trust, become a part of a combine,
and seeks to mOnopOliZe the whole to-
bacco business. the farmer is startled,
frightened and indignant. He thinks he
sees the last plank to which he chung
shivered before his eyes.
Since the news Went out that the
trust had been formed and that the
combine had bought up all the Danville
warehouses farmers have been pouring
into town to inquire into the matter.
The warehousemen have been kept
busy since their return from New York.
where the combine was formed, explain
ing to the many farmers who have
rushed to town that the trust was
formed in their interest and that they
are not going TO be hurt, but the farm
ers are taking these explanations with
many grains of allowance. Some Of
these farmers are men of means, and
quite number of this class have been
and are now here consulting with city
capitalists with a view to organizing
stock company to build and conduct
independent warehouses.
The smaller markets, too, are up in
arms against the new milliOn-dollar
trust, for the very first announcement
of the trusts policy-indeed, the only
announcement so. far made as to It's
policy-is an aggressive movement to
be made against the smaller markets,
such as South Boston, Keysville, Chat
ham, Martinsville, GAINESVILLE, Boydton,
and Chase City, in Virginia, and Reds
vile, Greensboro, Winston, Oxford, Dur
ham, Henderson, Roxboro, Milton, etc,
in North Carolina. The effort win lie
made to force the leaf tobacco to this
market direct from farmers hands, thus
drying up all the nearby smaller mar
kets and making those farther away.
in Eastern North Carolina and South
Carolina. simply tributary to this the
one great central market.
Such a policy, if successful, would re-
dound to Danville's interest i'm general.
and so, while Danville is politically and
theoretically opposed to trusts, it IS
very much inclined to give this particular
trust a very fair showing. However,
there are men of large means here who
think if the trust can make noncy
by selling leaf tobacco on commission.
they can also do it. and they are ut
present much disposed to take advantage
of the strong antitrust sentiment among
the farmers and representatives of the
smaller markets, and join with them
and build two or more Independent ware
houses.
Lengthy consultations are being he'd
daily behind closed doors, AMI sec
ond tobacco warehouse combine may be
announced at any moment. In the nl6 an
time the trust people are not idle ami
are making the most of their declaration
that the trust will do great things for
Danville and increase her LEAF tobacco
sales to a hundred millions or more on
nually.
Tn the Snrinp natura turus ovar a now