The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1902-12-16
DOWN GOES TOBACCO
Result of the American and
imperial Deal.
F Jl,w;ng the AnaIgGm2.ion tf These Truss
the Price Has Fallen Thirty hree and
a Third Per Cen.

"Ihc TOBACCO trust has lGl GOWN Tn
price Of tobacco fully IS Is per cent,
said a gentleman Who had returned yes
tcrday from a visit TO kinston. Wilson.
SmithfielG ana other Eastern markets
He continued:
TIL people in the tobacco section are
face To facc With a serious situation.
Early IL the tobacco year there was live
and healthy competition between the
American Tobacco Company and the IN
pcrial Tobacco Company, and there was
a good sprinkling of orders from indie
pendent concerns abroad and at aomc-
AS a result the price of tobacco ruled
high and tobacco farmers eapCd the
benefit Of the competitions. In the height
Of the season came rumOrS that the
Imperial ard American We're trying to
get together. knowing that such a mer-
ger would injuriously affect The price Of
their tobacco. the farmers rushed their
tobacco to market in order 10 sell it be-
fore the contamination Of tho merger. 1t
found ready sale and the farmers got
good prices.
The price was not depressed by The
immense quantities rushed to market
until the merger of the American and
Imperial. Then the price began 10 sag
and we began to hear that the crop was
larger than anticipated and the farmers
were themselves depressing the price by
hurrying it TO market in quantities toe
large to handle. The price Kept Oh going
down and is now 33 1-3 per cent. lower
than the day before the trust were
merged into Gre. And the drop in the
price is the legitimate and contemplated
result of tlc merger Of the American and
Imperial Tobacco Companies. Nj q tho
other causes alleged could rot have pro-
duced so much as five per cent. variation
if the independent Imperial ana Ameri-
can buyers had continued 10 cocnpate for
the crop.
When the trusts CoI2bi~c3. thon there
was left only the iuisp ..te.t manufac-
turer in this country and abroad and
the independent buyers in the tobacco
towns. They had al stocked up heavily.
and were rot in 4 position to keep up the
price. in fact some Of the independent
buyers had bought 50 heavily th2t they
now are meeting Il Very serious propo-
sition. Tncir prize houses arc full of
tobacco for which they paid good prices.
Today on most of it they could not
realize moro than Sc 2-3 ccnts on the ono
dollar for all they purchased before
the English and American trusts Joined
hands. The trust merger VIII causo
some Of them heavy losses. Farmers
who held back their crop are also hit
heavy
The situation is one that calls for
serious consideration by all tobacco
growers and all others Interested in
handling or selling tobacco, and those
towns so largely dependent upon tobacco
for their prosperity. 1t looks like tho
trust has the business by the throat.
What Will it do With it? Will it bring
to pass in Eastern counties and towns tho
same train Of evil and ruin that blasted
the business in Eastern towns some ton
or fifteen years ago? Viii it close up
small markets? VIII it turn off its
buyers in most places? Will it utterly
DESTROY and drive Il the independent
leaf dcalerso
The trust in the meanwhile is killing
TWO birds with one stone. 1. Getting it,
tobacco SCI. per cert. cheaper than when
the merger was formed. ,. Destroying
independent buyers and Gripping indie
pendent manufacturers.
The Tobacco Convention. called bv col.
,fchn s. Cunningham. president Of mo
State Tobacco Growers Association. xiii
lie held in Rocky Mount. Friday. De
ccmber 10Th.
1t should be largely attended. The bcsi
and Wlsest Of the Independent buyers.
dealers and manufacturers. as Wei as
tho growers should be present. to look
the situation in the face. and take coup-
SCI Of each other.