The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-12-07
TRUST R[APS
RICH HARVEST
Merger of Tobacco Com !
pdnies Takes Its
Old Name.
JAMES B, DUKES
NOTABLE CAREER
Interesting Story Of the Organi-
cation Of the American To-
bacco Co.-Major Ginter the
First Prcsident-Mr. Duke
Chosen to be Head Of
New Corporation.

Had not The fertile brain Of J. b.
Duke. of Durham, hit upon the scheme
OF selling ten cigarettes for five cents.
and flourlshcd since 1890, would probably
have never existed.
A gentleman, well known iii the i,,isi-
ness world OF the sonth. Is authority for
tho above statement, and this IS tho
story:
Il About the year 1885 the tobacco firm OF
W. Duke, Sons and Company Of Dur.
ham, N. c., because OF conditions
then existing held u meeting 10 consider
ways and means. Mra ). b. Duke, "a
member OF the firm OF w Duke, Sons
and Company, suddenly held up u sheet
of paper on which he had written IGN
cigarettes for 8 cents. Up 10 this time
cigarettes had been sold only at the tc
2of one cent each and II was all that All !.
j. b. Duke could do to induce Ills part
5ners TO accept the new departure.
The time was ripe for such a change;
for! atlswaS known that the tax on ciEa- !
rettes was to- be reduced within few
weeks. and SO this adventurous firm
placed on the market q cigarette that
Was sold at exactly half the price charged
almost in a single night found success
md wealth knocking loudly at their door
The business thus happily launched grew
In great strides until the Dukes were in
a position to dictate TO the cigarette
world. In the year 1889 Mr.. ]. B. Duke
conceived the idea OF q combination Of
the cigarette factories Of the first rank
and although It is known that one a t
least Of the largest firms was bitterly
opposed TO tho move, on the list OF jan
5uary. 1880. the scheme was completed.
and the cigarette trust was organized
under the laws of New jersey, and with
the name of tile a merican Il Tobac eco Com
pany The firms composing this company
were: Allen and Gintcr, of Richmond I;
w. Duke. Sons and Company. or Dur
ham; w. S.. kiinball and Company. Of
Rochester; Kinney Brothers, Of New
York city; and Goodwin and Company or
New York.
Ginter First President.
8 Major Lewis Ginter, of the firm Of
Allen & Ginter. was the company's first
president. but resigned after short term,
and was succeeded by Mr.. j. B. Duke,
who became then and has been ever since
the, dominating power Of the tobacco
world. & i (.
The capitalization OF the American To-
$UdCCO HSOIIlpdliy W dS lolloMo 5S11,voV,|
200 OF preferred stock S per cent; s5i,-.,
100000 Of common stock. There were no
bonds issued by this first company
Il Mr.. Duke soon grew weary OF limited
power confined to the monopoly OF the
cigarette industry. determined to get
control OF tho plug tobacco industry.
With this aim In view, his company be-
gan the manufacture of plug tobacco.
This branch OF the American Tobacco
Company was called the National TO-
bacco works and its principal output was
the Battle Axe" brand. that simply
played havoc with the plug trade. The.
brand was rightly named for It's ap-I
pearancc on the market meant war to
the bitter end. Fortune still favored Mr..
Duke and so In 1895, he successfully
combined number Of pluh tobacco firms
whose combined output practically placed
the other manufacturers at his mercy
II Is another story full8of interest to
tell how these independent Manufacture.
crs often against their will. ana often
without their knowledge. were led TO be-
come component parts Of the plug trust.
Those who followed the strategy OF that
campaign vii! recall low,Swhcn the final
i show down came, tho combination got-
ton together to fight the Duke interests.
1Sovcd to be only a stalking horse used:
u by Mr.. Duke himself. !rf
This second combination was the Con-
tinental Tobacco Company, incorporated
under tho laws of New Jersey. on De-
CONTINUED on Twelfth Page,)
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