Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-11-30
rr;toa cigar Stores Co. s'cans just
This. II IN Reported.
Kew York COMMERCIAL.

-
r..,zs e Duke, Of the American To-
q -, Company. is credited with o-isi-
- ;Fa ;tea which led to TIE establish
Il ..,rt n the United Cigar Stores Com
Il - Tho concern retail tobacco dealers
u .-o organizing against.
q 7. ,s said to be the open statement Of
a a. ngge that the middiemen must go,
j Ell The manufacturer sell. TO the consiHl-
Il = direct without opposition.
4 7be United Cigar Stores Company de-
q lies and its denial is endorsed by the
j i-,e-jcan Tobacco Company. that the
4 ,-uer is controlled by the latter. Net
n7i-g this declaration. the retail
B t;s SCOT at the idea of the two not being
4 ill., sane in reality. and say that they
d an rrove that they are.
h CHAIN OF STORES.
about thirty-tive OF these stores have
.ss7 ogened in New York, and others in
n rsri9ur cities. among them being Jersey
-fy Newark. Albany. Rochester. SYRIA
use Boston. Providence. Philadelphia.
Baltimore. washington. Chicago. and
Kansas City. Every week witnesses an
e1tersion Of the system in New York
end the other cities: new stores are plac-
Fl in neiEhborhoods previously not Gov
cred: and il is expected that such profit
stia cities as have not been already in
cjmde5 will he soon on the list.
Ignoring the question of ownership. it
seems 10 be 2 fact that the tobacco COM
bine is giving the United Cigar Stores
credit that no other retailers can secure
One Of the officers of the newly organized
Retailers Association styled the Cigar
Stores Company dummy OF the COM
hlna Then he told of the methods used
in destroying competition.
METHODS OF THE AGENTS.
THE agents of this combine" said he
"saanting a retailer having a particularly
lgg-etive business in an active neghbcr-
s5of call upon him. and without unnec-
sssarv preIiminaries. toll iii4n that they
want 10 buy his place. They will pay
him so much for his stock and fixtures.
and employ him as salesman at good
salary Nothing at all is offered for the
good will. which often is more valuable
than the stock and fixtures combined
II the retailer denlurs, the agents say:
We'll would better accept a fair offer
Than ne nut out OF business Should the
dealer persist in his refusal, the agents
20 away But presently he will find that
two stores arc opened near his store-2s
7sar as the combine can get. and articles
II all kinds are offered at cut prices.
AN OBJECT LESSON.
an instance of these measures is that
Of 2 retailer on Park Row. opposite the
postofIoe. He declined to give in to the
combine terms. and Immediately two
large stores were opened near his place.
Even If the retailer had a steady personal
custom-that is. OF mon who know and
rely upon hinl-1nuch Of his general and
transient trade is thus taken away
He finds his expenses DO not decrease
but his profits DO At such a loss he can
not continue for years. lie has not cap
i,aI s7ar:sh 10 fail back anon. while INC
combination stores can be run at a loss
FOR y.a,s without feeiing it, SO great is
thelr backing.
a worse means of prescription has
been used.
There are number Of technical VIC
latioAs of the internal revenue laws, such
as leaving q plug OF tobacco out OF the
box in which ii was packed at the factory
Or transferring q cigar from one box to
another.
LAW Is INVOKED.
Recently sixty internal revenue Off
cials we're suddenly detailed in this city
to make tie rounds of The retailers. Now,
Il ls a!!eSej-anG i speak aGv:sediy.-tilat
these cheers went TO the Offices OF The
American Tobacco Co. No III Fifth ave
nue. and there reuet ved directions and
also money with which 10 prosecute their
search.
They were instructed, it is alleged. to
arrest any retailer. however trivial his
Violation Of The internal revenue laws. SO
Ia about twenty or twenty-five indepe1i-
cent retailers have been arrested. but
nave not heard OF any arrests being MADE
IL the combine stores
There arc soon to be opened on Broad
way between Twenty-third and Twenty
fourth streets. three new stores. the an
alai collective =: ntal of these stores be-
lag nearly $lj1,000
The combine can afford this outlay.
Is you viii sec from this instance: Some
years ago il introduced a certain brand
yg.t,., Ia
Known brand made by large indepen-
dent manufacturer In the the first few
years II lost SS0v0050 on this brand. But
!.Ra4iN II succeeded in putting the 1nde-
PENDENT manufacturer out OF business.
nave this On the authority OF one OF the
4sa officers Of the combine. And to-day
Inc cost 10 the cousuner Of that plug ls
!Fee times what it was originally.
WHAT MAY HAPPEN.
As soon as the combine gets in actual
eohlro. q the retail trade, 1t viii be able
10 place the inferior kind OF goods on
we market and charge what II pieases.
0uEffs OF frst-class cigars are not pat
VhZEg the combine stores, as rule.
plt the general public isl mean that
pan Of the public that is not too partic-
uisr"
Tie American Tobacco Company's
%Fo~cd policy is to control everything ).
NAT tobacco smoker utilizes, and II
"a. Dukes idea Is followed out, 1t Will
pslAt few Independent retailers of such
eV'Amod!t!es TO continue in business.
N order TO extend its sphere Of opera
aohs, IN accordance with the plan Of get
my control Of other tobacco commodities.
lle american Tobacco Company recently
t1opsht out seven OF the principal clear
.taFana cigar manufacturers, and six OF
we chief cheap cigar manufacturers.
me factories of these thirteen fir:>>S
we're IN New York and Key West. This
oohcentrat!oa caused at least 100 inde-
.sAGent tobacco jobbers in New York city
s'oAe TO give up BUSINESS. In their place
'oAcct:l styled the Metropolitan Tobac-
bing.
REFLECTIONS OFF A BACHELOR.