Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-02-24
HTS TOBACCO TRUST
Congress Asked to Order an In
vestigation of That Great
Monopoly
GROWERS ARE COMPLAINING


They Claim That They are Suffering
Great Loss Thru the Sitting OF
Observation-Disclosures introduced
in the Lower House by Kentucky
Congressman.
Washington, Feb. 24.--Not satisfied
with the progress of the investigation
into the operations of the tobacco
trust chat is being conducted by the
department of justice and the depart
ment of commerce and labor Repre-
sentative kehoe of Kentucky yestef-
day introduced a resolution aimed d.
rectly at the trust. Its provisions are
practically Identical with the resolu-
ton OF Representative Campbell OF
Kansas providing for an investigation
of the Standard Oil Company.
Under the NefOe IeSolutlpil .ii''
secretary of commerce and labor is re-
quested to investigate the causes OF
the low price of leaf tobacco IN the
United States, and especially III KEN
tuck. Ohio and Tennessee, and ascef-
tain what has caused the fall IN the
price of leaf tobacco In those states
and the increase during the same per-
od in the price of manufactured ar
tices made from that leaf tobacco ana
whether the condit ons have resulted
in whole or i'm part from the operations
of a trust or conspiracy in restraint of
trade"
The resolution also directs the secre-
tary TO ascertain whether the opera
tions of such a trust have interfered
with the operations of Independent
growers of leaf tobacco or growers
associations and to report also on the
management, capitalization and proht
of the tobacco trust.
Purposes Of information.
According to the resolution the lnfor-
nation may be used by congress as
basis of legislation or by the depart
ment of justice as the basis for crim-
inal proceedings. The resolution Is
designed to supplement the investiga-
ton into the tobacco business that is
now going on.
Speaking about the matter yester-
day Representative Kehoe said: Dur
ing the last few years. or since the or
ganization of the tobacco trust, leaf
tobacco has steadily c preciated in
price until the price is not half as
large as it was before the formation of
the trust On the other hand. the
price of the manufactured product of
the trust has gradually increased to
the consumer.
LAS a result of these conditions the
tobacco farmers of northeastern Ken
lucky and Tennessee and of southern
Ohio organized under the laws of Ken
tucky a corporation known as the Bur-
ley Tobacco Growers Association.
having for its object the raising of
enough money. about S10,000.000 to en-
able them to handle the output of the
Burley tobacco section in the most adj
vantageous manner. They secured con-
tracts from growers of the three states
for so per cent of the crop of the pres
ent year, each grower being member
of the association and each to par
in it's earnings.
Fail to Obtain Capital.
"The association opened negotiations
in New York and thought it had COM
pleted arrangements for getting the
but when it was ready to COM
mence handling the tobacco about two
weeks ago, after having fulfilled it's
part of the contract with financial in
terests which were to furnish the mon
ey-that is, by securing agreements for
at least Is per cent of the crop and
by raising 100000 in capital stock
the New York men who We're to fur
nish the fund of $10,000,000 refused to
do so and it is reported and believed
turnout the tobacco section of those
states that the tobacco trust is respon-
sible for the failure of the association
to obtain the promised capital
''The association has already en-
ployed men to purchase the crops of
tenants when the crops would be
ready for the beginning of the tobacco
on March l. 1t was the OBJ
ject of the association to furnish mon
ey in advance to growers who could
not hold their crops for a good price,
the association to hold the crop and
dispose of it when the market should
afford a fair price. It was estimated
that about $10,OO0,OO0 would be requir-
ed to do this.
Lawson May Render Aid.
Efforts are now being made to OBJ
tain the money in Boston, but the
harm has already been done, and many
who agreed to let the association han
die their tobacco are beginning to sell on
account of necessities of the occas-
zion.
Il am in receipt today of informa-
ton from Kentucky that it is UNDER
stood there that Thomas w. Lawson Of
Boston is becoming Interested in the
project and that he with other Boston
capitalists may see the association
thru"
The resolution was referred to the
on the judiciary, from which
every member of congress who is in
terested in tobacco-g growing will do his
best to rescue it before the fifty-eighth
congress expires.
The most reliable preparation for
kidney troubles on the market is Fol-
ey's Kidney Cure. B. n Morgan