The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-02-18

| The Southern Tobacco Journal, closing
an article in which it reviews the recent
communications in the News and Obser-
yer, showing that the tobacco trust has
the farmers at one half the price paid last
year, says;
AT the beginning of the season this
tobacco year prices were entirely too low,
conditions did not justify such prices
but it is a fact that since Christmas
prices have steadily advanced, until
things are beginning to look like old
times again. We have said often that
prices would continue to advance. If
they do not and In the face of all facts,
if tobacco does not sell we'll next year,
then in the language of our distinguish
ed friend, Colonel Cunningham, the law of
supply and demand is a fool.
The Journal says that eat the begin
were entirely too low" and it adds that
conditions did not justify such prices.
Exactly. But who put the prices en-
tirely too low when conditions did not
justify such prices?' Everybody knows
that the tobacco trust did it. Why were
prices not ''entireiy too low in the fall
of 1902? Everybody knows that it was
because of keen competition between the
American and Imperial tobacco companies
When they Combined competition was
destroyed, and the bottom fell out OF
prices.
Early in the season this paper stated
that the trust, after getting the bulk of
the crop at prices below the cost of pro-
duction, would, in all probability, when
the season arrived for planting new
crop, increase the prices as a bait to the
farmers to continue growing tobacco. At
the prices paid in the fall. the farmers
would never again grow pound OF to-
bacco The Journal shows that the pre-.
says: cit is a fact that since Christmas
prices have steadily advanced" but it is
wrong in saying that the advance has
been enough to make it look like old
times again There has been some little
advance offered solely as a bait for to-
bacco farmers not to wholly abandon the
cultivation of the weed.
The policy of the trust is this to pay
just enough for tobacco to induce the far
mer to grow it, Just as the farmers
are about ready to abandon the cultiva-
ton of tobacco, the trust puts up the
price enough to induce farmers to grow
another crop That is the secret of the
increase "since Christmas" The trust
knows that many farmers are so situated
that they will grow tobacco if they can
get seven cents pound for it, and they
are offering the bait of that and little
more for very bright tobacco now as the
planting season is on. Will the farmers
bite at the bait?
The law of supply and demand does not
work at all when competition is destroy
ed When there is only one bidder for an
article, the seller must take the price Of
fered That is the situation with refer
ence TO the pulh Vi topdcco grown III 'hio
section When the trust sees the crop OF
one year very small, they pay larger
prices TO INDUCE THE FARMERS TO
RAISE A VERY LARGE CROP THE
NEXT YEAR, which they take at a song
They employ experts to manage this
branch of their business, whose duty it
is to so increase or lower prices as to
get enough tobacco to meet the demands
of the trust. As long as the trust con
trolls nearly all the tobacco concerns,
is impossible, and the law
of supply and demand does not operate.