The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-12-14
DOWN Goes TOBACCO
Result of the American and
Imperial Deal.
Following the AmaIgamation of These Trusts
the Price Has Fallen Thiriy-Ihree and
Third Per Cent.

"The tobacco trust has put down the
price of tobacco fully SO 1-3 per cent"
said a gentleman who had returned yes
terday from visit to Kinston, Wilson,
Smithfield and other Eastern markets.
He continued:
The people in the tobacco section are
face to face with serious situation.
Early in the tobacco year there was live
and healthy competition between the
American Tobacco Company and the I'M
perial Tobacco Company, and there was
a good sprinkling of orders from indie
pendent concerns abroad and at home.
AS a result the price of tobacco ruled
high and tobacco farmers reaped the
benefit of the competition. In the height
of the season came rumors that the
Imperial and American were 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 to sell it be-
fore the contamination of the merger. 1t
found ready sale and the farmers got
good prices.
1.-THE price was not depressed by the
immense quantities rushed to market
until the merger of the American and
Imperial. Then the price began to 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 too
large to handle. The price kept on going
down and is now 33 1-3 per cent. lower
than the day before the trusts were
MT nd he in fha
price is the legitimate and contemplated
result of the merger of the American and
Imperial Tobacco Companies All of the
other causes alleged could not have pro-
duced so much as five per cent variation
if the independent Imperial and Ameri-
can buyers had continued to compete for
the crop.
When the trusts combined. then there
was left only the independent manufac-
turer in this country and abroad and
the Independent buyers in the tobacco
towns. They had all stocked up heavily,
and We're not in position to keep up the
! price. In fact some of the independent
buyers had bought so heavily that they
| now are meeting a very serious propo-
sition. Their prize houses are full of
tobacco for which they paid good prices.
|
realize more than sc % cents on the one
| dollar for all they purchased before
| the English and American trusts joined
! hands. The trust merger will cause
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 the
| trust has the business by the throat.
| What will it do with it? Will it bring
| to pass in Eastern counties and towns the
| same train of evil and ruin that blasted
the business in Eastern towns some ten
or fifteen years ago? Will it close up
small markets? Will it turn off its
buyers in most places? Will it utterly
| DESTROY and drive out the independent
| leaf dealers?
The trust in the meanwhile is killing
| two birds with one stone: /. Getting its
| tobacco 331a per cent. cheaper than when
/ the merger was formed. 2. Destroying
| independent buyers and Gripping indie
pendent manufacturers.
The Tobacco Convention called by Col.
| John S. Cunningham, president of the
| State Tobacco Growers Association, will
| be held in Rocky Mount, Friday, De-
cember 18th.
1t should be largely attended. The best
| and wisest of the Independent buyers,
| dealers and manufacturers. as we'll as
| the growers should be present, to look
| the situation in the face and take coun-
sci of each other.