The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-02-01
DUKES TOBACCO TRUST
SAID TO BE a GREATER MONOPOLY
THAN STANDARD OIL.
May Yet Teach Farmers and Grain
Growers How to Control Trade
Dukes Methods.
New York Letter in Philadelphia Press.

trust as a satirical proposition and not
seriously conceived are not supported in
that view by some of the greater trust
makers OF this city. 1t has been said often
that the very conditions of agriculture and
especially of the raising and marketing of
wheat, oats and corn. would of themselves
prevent any practicable combination OF the
various individual interests engaged in any
Of these vocations. Many believe that it is
impossible to control the whole product of
any line of agriculture unless, as in the
case OF sugar cane. the production is linn
tied to comparatively small district And
yet when this objection was raised last
evening by one who regards the farmers
trust as impracticable. the reply made by
fnancier of New York of far more than
local reputation was this: why should
it be any more impracticable to organize
one corporation controlling the marketing
of wheat and another grain than it has been
for John b. Duke and his associates to
purchase the entire tobacco crop of the
United States and to a great extent that
Of the whole world?"
He seemed to realize after he had said
this that he had spoken more freely than
he, as financier, was justified in doing.
But, having made the statement, he neither
qualified nor denied it, nor did he pretend
that II was merely hearsay upon which he
based that comment. SO, for the first time
outside OF the circle directly interested,
that Is to say, Mr. Duke and his associates.
and the fnanciers who aided them, it be-
came known that this new trust, OF itself
one Of the greatest OF all those that have
been organized in the United States, has
been able to do a hitherto unheard of thing.
Sometimes our merchants have been able
to buy and hold this that agricultural
product after 1t had been marketed by the
farmers. One or two houses usually acting
by tacit If not formal, understanding have
frequently controlled the output of tea, so
far as the United States Is concerned One
house In New York has been the master
for years of nearly all OF the coffee prod
uct, at least that designed for the United
States But that involves different meth
cd from the one adopted by Mr.. Duke. This
statement, upon inquiry, was confirmed,
that Mr.. Duke, through the corporation of
which he is the head, recognized as one of
the greatest Of trusts, has actually pur-
chased and now controls all OF the tobacco
raised in the United States, excepting iso-
lated and trivial products here and there,
20 per cent. Of that raised in Cuba, DOM
mates the Porto Rico tobacco plantations,
and has practically secured control of the
greater part of the tobacco harvested in
every one of the tobacco producing districts
in other parts of the world. Furthermore
IL Is expected that this trust will speedily
enter into contracts which will give il the
control OF practically the entire tobacco
growth of the world for the year 1903.
Therefore If organization, financial abil-
ity and resources can be so handled as to
make ii possible to buy so great and widely
diversified crop as tobacco is there seems
10 be no substantial reason why the farm
ers. IL they are able 10 perfect an organ
zation, secure the ability for organizing
and directing and the financial support that
are necessary, should not absolutely
master the marketing of wheat or corn or
both as Mr.. Duke and his associates have
the leaf tobacco market.
1T TAKES ORGANIZATION
First of all, however, organization is
L.
Mr.. Duke, a blum, rosy-cheeked, large,
somewhat unconventional, imperious or
self-wilIed man, who, nevertheless, in
private life Is a most agreeable companion,
first attracted the attention of the fnan-
ciers and organizers of this city. He was
unconventional in the sense that he seemed
TO care but little for the fashionable pleas
ureS, the luxurious life, the incidental ex-
element which seems to be as greatly de-
sired by those who come to New York after
having achieved wealth elsewhere as are
great Industrial and financial successes. He
Vas known 10 nave peen born and bred In
North Carolina and to have expanded in
business and in purpose so that he went
from that State to Richmond. But when
he appeared I'm New York he suggested
rather the conventional, far Western type
than that of the South. IL was presumed
that he would be satisfied with his tri-
umphs in which fine generalship much of
II OF an original manifestation, had been
employed and by means of which he
brought about one of the earlier of the
trusts, that which obtained almost COM
plete control of the manufacture of Gig
arettes. In that combination was revealed
some of the economic possibilities OF COM
blnation, as, for instance, the saving in
picture and photographic and other tempt
ing advertising which the competition of
cigarette makers had made necessary APP
proximated million dollars a year. of it
self enough to have paid something of
dividend upon the earlier capitalization of
the trust.
from the cigarette trust To greater under
takings OF whether he had the absolute
monopoly which he new possesses In mind
from the beginning he alone knows. If he
contemplated after the cigarette trust was
organized the mastery of the various other
departments OF tobacco manufacture. the
prospect, while 1t might have tempted
man of great daring and ability because of
the dlriculties that were to be surmounted,
would have completely checked any who
dld not possess great audacity, great con-
structive ability and the power of persuade
ing men. There was first of all what is
called the plug tobacco, a great business in
itself, and I'm the hands of many manufac-
turers There was next the manufacture of
snun, not so widely distributed, since the
snuff-taking habit is somewhat limited
There was the fine-cut chewing tobacco, a
business OF enormous proportions, and con-
trolled by several independent manufacture
ers, each of whom seemed TO be perfectly
intrenched, having command of his own
market. And then there was the cigar
business In some respects the most difficult
COMBINED WITH DUKE.
Mr.. Dukes organization. however was
so perfected that he at last obtained control
of so many of these differing kinds of to-
bacco manufacture that it was said of him
that he was true monopolist. But the
keen. searching eye OF William c. Whitney
and that OF his next friend, Thomas L.
Ryan. and OF others who know where OPP
portunities Turk and how best 10 seize them,
recognized the work Mr. Duke and his as
sociates were doing. so that they estab-
Hshed, undoubtedly with the deliberate in
tent OF ultimate marriage with Mr.. Dukes
company, rival. They had everything
that Mr.. Duke possessed except an encyclo-
pedic knowledge OF the tobacco trade, and
OF tobacco growth and manufacture. The
ability OF that kind which they lacked they
bought. Their resources SO far as financing
ability and cash were concerned were
greater than Mr.. Duke was able TO COM
mand. Therefore, each of these two groups
recognizing the strength and advantag eous
position or the other, was persuaded by
the same tendencies which brought the
various rival steel producing and iron min
ing and transport ting corporations under
the control Of the United States Steel Trust
into great sponsoring company with
control over great number of individual
corporations. great difference, however
between the steel trust and that created
the fact that whereas the steel trust by no
producing plants or the iron mines trans
he fbar no az