The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-27
THE TOBACCO FIGHT
How TO Win Out Against the
Great Trust.
Secretary W, P. Bachelor Urges The Necessity
for Immediate Work on The Local Mar
kcts 10 Do This.

ton of the Farmers Convention at Rocky
Mount, one is struck with the reasonable
Eess and practicability of tn eplans adopt
cd.
The committee recommended and the
Association adopted resolutions calling
Tor the formation of independent tobacco
companies, acting each for itself in its
own field. The object of these companies
was stated to be:
ITO buy, sell, handle and in any man
Ter deal with leaf and manufactured to-
bacco; to manufacture into plug, twist,
cigars, cigarettes, cheroots, smoking TO-
bacco and any and all other forms. To
own, lease, maintain and operate ware
houses for the handling and sale OF leaf
| tobacco upon commission or otherwise,
and also prize houses, stemmeries, and
any and all other houses or factories in
| cIdent or necessary IN carrying on
general tobacco business. To own, lease,
| erect, maintain and operate storage ware
| houses and to issue receipts for tobacco
| stored and to advance money or other
credits upon such tobacco. which receipts
shall be transferable and shall entltle
the holder TO the property so stored, or
to that part remaining after the payment
Of all advances and charges; such to-
baCco may be redeemed and removed
upon presentation of the receipts and the
| payment OF the amount sadvanced to-
gether with all incidental commissions
| and charges. Payments for tobacco pur-
! chased or advances on tobacco stored
may be in cash, promissory notes re-
deemable at a fixed time, stocks or bonds
OF the corporation, or otherwise. To
manufacture, buy, sell and otherwise deal
in any and all kinds OF fertilizers, phos-
pilates, cotton seed meal and farm sup
plies; to engage in the general merchan-
disc business either by wholesale or re-
tail. To buy, own, lease, sell. improve,
rent or otherwise acquire or dispose of
such real estate as may be considered
| convenient, necessary or desirable; and
to do any and everything not prohibited
by the laws of the State OF North Caro-
lima"
Now III considering the plan due regard
must be had to the personnel of the com
mttee recommending it. This commit
tee was composed of men every one of
whom had been emlnently successful in
managing affairs. This of itself entities
d Dldn recommended by InGn TO CafGIuI
and respectful consideration.
And when one comes to consider the
plan on its own merits it will be found
simple and practical. More than this:
il is applicable to every possible phase
OF the situation The amount of the
capital stock of the various companies is
not limited. Each company may be form
ed with such amount of capital as shall
Ic1,f ota e Al
market on which it proposes to deal. This
vas one of the detaiIS, which IN the ma
tLre of things, mass meeting can not
handle, and so very wisely it was left to
be settled required by the needs of
each particular case.
In like manner the matter of the kind
OF business to be carried on by each
company was left to the decision of such
company. A company may carry on any
or all of the lines of business embraced
in the resolution. Whether it shall en-
gage in one, two or all OF the kinds of
business pointed out is a matter for the
decision of the governing body OF each
separate corporation.
This reference of details to the sep
arate companies gives the whole plan an
elasticity which Is of great value The
companies are each independent, but at
the same time they, all working together
to one common end, can upon any en-
Urgency be rapidly merged by their own
action. Thus the plan of those gentle
men who desired the formation of one
great central company can be realized
in the plan adopted by the Association.
1t is a great mistake TO believe that
the American Tobacco Company has all
the money in the world, or that it has alb
solute control of all the markets of the
world. A very large proportion of the
stock of the American Tobacco Company
| is water But in order to keep up its
stock it must earn dividends on this wa
tered stock just as if it represented real
value. In the companies proposed to be
formed under the resolutions of the
Farmers Association every dollar of
| stock will represent a dollar OF actual
value. This advantage will in itself give
the Farmers companies the key to sltua-
ton. As to the control of the markets
by the American Tobacco Company the
fact that the company is spending a mil
lion of dollars a year in advertising shows
that it realizes that it's control is
mere assertion and by no means fact.
That the corporations raised under the
plan adopted by the Farmers Associa-
ton VIII De successful there can be no
doubt They have at this juncture every
advantage possible to be conceived The
action OF the American Tobacco Compa-
ny in closing the minor factories has
thrown many skilled tobacco men out of
employment The services of these men
can now be had at salaries much smaller
than they would have commanded a few
years since. Then. too, the farmers who
takes stock in one of these companies is
doubly fortified If the price OF his pro-
duce does not range high enough to make
his planting profitable he, as manufac-
turer becomes his own customer and by
the profit of manufacturing balances the
account. Then if the price of the raw
material is high enough to make manu-
featuring Improbable, he lets the other
fellow do the manufacturing and con-
tents himself with the profit on the raw
product. 1t comes nearer putting the
farmer in position to eat his cake and