The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-05-10
The TOBACCO TRUSTS
THEIR TACTICS DESCRIBED To
THE COMMISSION.
PRESIDENT DUKE TESTIFlEs.
KNOWS NOTHING or ALLEGED
BULLDOZING METHODS

A Reign of Terror in the Tobacco
Business in New England, Because
of the Methods of the Two Trusts,
Said Mr. Campbell of Richmond,
Vn.-President Duke Tells of the
Extensive Cigarette and Tobacco
Business of the Two Compnnics OF
which HE Is the Head.
Washington, May s.-The Industrial
Commission gave it's attention to-day to
the manufacture of tobacco, with especial
reference to the effect Of combinations in
the business. Several witnesses, both for
and against the trusts, were heard the
first of them being Hugh Campbell, presi-
dent of the United States Tobacco Com
pany of Richmond, Va, manufacturers OF
plug tobacco. Mr.. Campbell is one of
four independent companies, and he com
plained of radical determinations against
his company, especially in New England
because of the eXactions of the Continen-
tai company which manufactures
large percentage of the chewing tobacco
made in the country. He said that the
representatives of that company had made
a proposition to jobbers to give them a
| reduction of cents a pound, and had
later increased the percentage reduction
to 5l5 per cent, at the same time reduc-
ing the cents q pound reduction to
| cent These advantages were, he said,
given on the explicit understanding that
| the jobbers should refuse to sell the
brands of the independent manufactur-
ers. The result had Mr.. Campbell said.
been very injurious to his business.
JObbers BulIdozed by the Trust.
Mr.. Campbell said that the Continental
companys proposition applied 10 the Unit
| ed States Company, the Wetmore Compa-
ny of st. Louis, FINER Bros, of Louis
vile. The last reduction TO the -jobbers
and the fact that the Continental Cornpa-
| ny had refused to do business with those
handling the independent companies
| goods, had so frightened many of Them
| that they had refused 10 continue busi-
ness with outside companies. He said
! that jobbers had themselves told him OF
this exaction on the part of the Conti-
mental Company, assuring him at the
same time of their satisfaction with the
United States Companys goods. Mr..
| Campbell declared there IS a reign of ter
ror in the tobacco business in New Eng
| land on account of the Continental Com
panys manner of doing business.
Mr.. Campbell declared that the effect
of the organization of the American and
Continental companies had been to re-
ducesthe price of raw material TO ,ne in
Jury of the farmer, and without benefitting
| the consumer He asserted that the man
ufacturers and dealers would secure the
| entire benefit to. be derived from the re-
duction Of the tobacco tax, which is to
take place on July /. Mr.. Campbell said
he had not proceeded under the antitrust
| law because he neither had the time nor
| the means for such contest.
1T would be like mosquito fighting
an elephant he said.
President Duke TestIHes.
| James p Duke, president of both the
| Continental Tobacco Company and the
American Tobacco Company. explained in
| detail the methods of those two organiza-
| tions. He denied that any threats had
been made to drive out the brands, OF
| other manufacturers. .g,sss
'All brands stand upon their own bot
toms" he said. Il do not, of course,
know what our agents may have done
in making terms with dealers but II they
have made any such exsctions as repre-
sented, 1t has been made without our
consent and / don't believe they have
done sos don't know of a single job
| ber in New England who doesn't handle
other brands than ours"
Mr.. Duke estimated that the Ameri-
can Company makes IS per cent. OF the
cigarettes manufactured 8 the United
States and the Continental Company 60
per cent. of the plug tobacco. The
American Company exports about a bill
lion cigarettes annually and has foreign
| factories which manufacture S,0000 900 a
day in Japan. 200 100000 year in Austria
lian and 0o,0O0,O 600 a year in Canada.
He said that his two companies proba-
| bly, employ from 1900 to 1900 persons.
| He paid no attention to whether they be-
long to labor organizations.
I'VE do not ask a mans politics or re-
| lgion or his labor affiliations" he said
but we pay good prices and expect ef-
| ficient service, which we generally get,
| We treat our people well and get on with
them"
No walking Delegates.
He added that he would not agree that
his business should be run by walking
delegates" and that he had not consent
ed to have labor union labels placed upon
iiis goods because the goods stand on
their own merits. He had, however, never
refused to consult with employees concern
ing matters affecting them.
He said there had been a reduction in
the price of cigarettes since the organi-
zation of the so-called trust and that this
had been effected at the expense alike Of
the manufacturer, the dealer and the to-
bacco grower. He thought that the ef-
forts OF the trust to extend the foreign
business had had the effect of materially
increasing the demand for Virginia and
North Carolina tobacco.
AmdavIts From Jobbers.
John Lanstreet, vice president OF the
United States Tobacco Company. read Of
ndavits from tobacco dealers in New Bed
ford, Lynn and Boston to the effect that
they had been refused the products OF the
Continental Tobacco Company because
they persisted in selling the goods OF in
dependent companies. He also gave the
names OF number OF other dealers who,
ne said had had the same experience.
n. y. Lee. treasurer OF the American
company, said that the combination to-
bacco companies had not TO his know-
edge made such exactlons as represented
Anaar. laIlar.LanII al.a I-....-t r..-t