The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1903-03-17
TOBACCO TRUSTS vs. TOBACCO
GROWERS.

on the effect of trusts that ought to be
emphasized. They appeared on the same
dav The one sent out from New York
was widely commented upon in financial
circles and there were editorial COM
ments stating that the operations of
the tobacco trust showed widespread
prosperity. Here is that telegram:
New York, March 1.-THE annual
meeting of the stockholders OF the
American Tobacco Company was held to-
day in Jersey City. The old board OF
directors was reelected with one eX-
cepticn, Charles N. StrotZ being chosen
to succeed Thomas F. Jeffries, of Rich
mond, Va. After deducting all charges
and expenses the net earnings for the
year were s7.450.574.
The stockholders of the Consolidated
Tobacco Company also held their annual
meeting today. The old board of direc-
tors was reelected. The report of the
assistant treasurer showed total earn
ings of $13.291 .459.
The annual meeting of the Continental
Tobacco Company was also held today,
when the old board of directors was re-
elected. The t~reasurer's report showed
net earnings, after deducting all charges
and expenses, of $11, 776, 1874.
The other telegram was not quite SO
long. 1t was of Importance to more men
who earn their bread in the sweat OF
their face. But it did not tend to glorify
the trusts and it has passed almost with
out IN Here is the second tele-
gram.
Hartford, Conn, March Ito combat
the tobacco combine, leading Connect
cut Valley tobacco growers have organ
lied the New England Tobacco Growers
Corporation. Conventions are being held
at several points in Connecticut and
Massachusetts this week and it is eX-
pected to solidify the entire New Eng
land tobacco industry, which represents
q 5000 acre crop having an annual value
of upward of S., 600. 900. When the or-
ganiZatiOn has been perfected it is pro-
posed to impose a penalty on any mem
Der found guilty of selling to any out
slider.
North Carolina people do not need to
go from home to read the story of the
trail of the tobacco trust. Go into any
tobacco town where the trust has fac
tories for the manufacture or manipula-
ton of tobacco, and you find business ac-
tivity and the erection of mammoth
warehouses and factories. Go into towns
not favored by the trust which twenty
years ago nad every reason to expect to
become fourishing centres for the sale
and manufacture of tobacco. They are
dead or have been forced to eXpend their
energies in other directions. Go into the
rural districts Of the old tobacco sections
in Person, Caswell, Granville and adj
jacent counties-and contrast the prices
received since the organization of the to-
bacco trust with the prices received
when there was free competition. There
you will learn why the twin-trusts in
of dollars in dividends and the farmers
are hard at work trying 70 organize to
prevent further reductions IN the price
of leaf tobacco.
The plainest object lesson of the effect
of the tobacco trust ever seen has been
since September, 1902. For several years
the cultivation of tobacco has not been
profitable. Steadily, since the OrganiZa-
ton Of the trust. have the profits oeen
diverted from the pockets of the farmers
to the Golfers of the trusts. The price has
been manipulated SO as to encourage the
farmers to continue the cultivation of the
weed. In 1902 there came a new and ag-
gressive factor on the North Carolina
market-the Imperial Tobacco Company
of England. 1t lac plenty of money and
of the season it put it's buyers on the
market. For the first time in years there
was real competition for tobacco on the
floor of the warehouses. AS a result of
this competition tobacco brought good
prices. Both of these giant concerns
seemed to be in the fight, war to the
I'LL liz q LIZ ,, t1lot IIlS CT
would end, rushed their tobacco to mar
ket while the war was on and realized
fine prices. There came rumors that the
and Imperial trusts would
The humblest tobacco grower
saw that the probabilities indicated a
The two trusts saw, after an
expensive warfare, that if they would
pool their issues, divide the territory, and
press down the prices of to-
bacco they would make more money
they could by continu- !
ing the fight. They merged, or pooled. or |
got together in some fashion. What was !
the result? Tobacco went down like Il
rocket from % to 33 1-3 per cent. The
trusts, as a result of their agreement,
put into their Golfers the 25 to 33 1-3 per |
cent reduction that would have been paid
the farmers for their tobacco but for
the merger. 1t was a fine thing
for the trusts, as their report printed
above, shows. But by the same
If was taking ayactlv Ok To % Ia