The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-03-15
TOBACCO TRUSTS VS.. TOBACCO
GROWERS.

Two kilograms have been published in
all the papers of the United States dur
ing the past week which teach lesson
on the effect of trusts that ought to be
emphasized. They appeared on the same
day Yhe 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-
ception, 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 $7.450.574.
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 treasurers report showed
net earnings, after deducting all charges
and expenses, of 81, 1884
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 comment. Here is the second tele-
gram.
Hartford, Conn, March Ito combat
the tobacco combine, leading Connecti-
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
$4,000 acre crop having an annual value
of upward of $5000,000. When the or
ganization has been perfected it is pro-
posed to impose a penalty on any men,
Der found guilty of selling to any out
slider.
North Carolina people do not need to
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 &C
tivity and the erection of mammoth
warehouses and factories Go into towns
not favored by the trust which twenty
years ago had every reason to expect to
become flourishing 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
| lin 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
their New York meetings declare millions
of dollars in dividends and the farmers
| are hard at work trying TO organize to
prevent further reductions in the price
of leaf tobacco.
/ The plainest object lesson of the effect
1 of the tobacco trust ever seen has been
given to the people of North Carolina
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-
market-the Imperial Tobacco Company
of England 1t had plenty of money and
plenty of resources, and at the opening
of the season it put its buyers on the
market. For the first time in years there
was real competition for tobacco on the
floor of the warehouses AS result OF
this~competition tobacco brought good
prices. Both of these giant concerns
seemed to be in the fight, war to the
knife. The farmers, fearful that the war
would end, rushed their tobacco to mar
ket while the war was on and realized
fine prices. There came rumors that the
American and Imperial trusts would
merge. The humblest tobacco grower
saw that the probabilities indicated a
merger. 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
than 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 "a