The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-10-05
Tobacco Dealers Accuse Trust.
(New York Herald }

Since the settlement of the war in Eng
land between the two great tobacco cor
porations has been announced independ-
ent American dealers assert that the
Unit Cigar stores Company, which is
establishing bEanehes all over the coun-
try, and is underselling the market in
every mann ar. is a part of the Tobacco
Trust, being allied with the American
Tobacco Company.
In New York city fifty stores have been
purchased or established by the United
Cigar Stores Company. Chicago Phila-
delphia, Boston, and st. Louis have been
entered in a similar manner. The COM
pany is now ready to spread into the
smaller cities, and it is planned that the
entire country will be covered in the near
future. Prices are being cut everywhere.
There are about eight thousand five
hundred cigar dealers in New York city"
said merchant who was recently COM
PEELED to give up his Broadway establish
ment, having been convinced that il he
did not sell he would be crowded out of
business. Every one of the independents
has been hurt by the big corporation.
which is closely allied with the trust.
Profits have been destroyed by the bus-
legitimate.
Il know the men connected with the
United Cigar Stores Company deny that
they have any relation with the trust.
but l have been told by men connected
with the American Tobacco Company that
trust money is backing the other concern.
1t is suggestive, too, that the men who
are really at the head of the United Cigar
Stores Company were fighting the trust
short time ago.
"The United Company, selling few
goods aside from those furnished by the
trust, is able to sell cigars at retail for
what the ordinary dealers are compelled
to pay the trust for them. In my store
am selling a certain brand of cigarettes
for Is cents a package. l have to pay II
cents for those cigarettes. The United
Company sells the same goods for IL
cents, and throws in premiums to attract
purchasers.
1T is the same way with cigars.
have in mind a brand of cigars that has
been advertised All over the country for
years. Its price has not varied since it
was placed on the market until recently.
1t is sold in various grades. Here is the
cigar which was long sold for 10 cents
or three for a quartef. 1t cost me Sc
hundred. The United Stores Company is
selling that cigar at retail for cents.
Where a drive is being made against
really strong competitor the price is cut
to 5, and even cents.
When l was asked TO sell my Broad
way store l was told that if I refused
another store would be opened as close
TO me as room could be obtained At the
same time l was told that the United
Company had no desire to hurt me. but
the trouble was intended for a larger
dealer a little further down the street.
That was why my store was wanted
AT the headquarters of the United Cigar
Stores Company it was said that the out
cry against the company was unwar-
ranted. One who seemed to have authori-
ty TO speak said business was being done
on legitimate basis, and that no cigars
were sold except at prices that gave
fair profit. He asserted vehemently that
the United Cigar Stores Company is in
no MANNER allied with the American To-
bacco Company. though it purchases goods
of the trust.