The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-28
Story Told in Suit Now
in Progress in United
States Court.
MA LEWIS GINTER',.
WAS FIRST PRESET
]. B. Duke Planned the Trust,
Succeeded Ginter as Its Head, 81
and Now Controls the To-
bacco Industry Of the 81
World With $500
u 900, 900 Capital. n

u 900, 200 Capital.
The suit against the American To-
bacco Company popularity known as
the Tobacco Trust by the United
States government now IN progress g N n$f
New York, is OF widespread interest to-
the people OF the whole country. but
especially is it so to the people OF
Richmond Of Virginia and Of North
Carolina, where are located so many
plants either directly or Indirectly
controlled by the company or IT. ~
officers. III iEj 81 NJ ilslSs
Tn no section Of the country arc
there SO many tobacco plants In opera
ton as there are in Virginia and North
Carolina, and 1t is an interest}ng g. Iar--jS
rative to- show how tn csc various 1nde.g
pendent plants gradually fell und ers ths
control of the combine. and how. with ms
the last seventeen years practically
the entire tobacco industry, with the
of cigars, has become this abs olutes
property Of the American To baoco.i
Company. "a! 5.5y PA y; f q ia .8ss
1t may be said that Richmond was
the original home OF the organ1Eatio
for the old American Tobacco Conn
,pany was the flrst example ct What g.
gigantic acombination could do and the
first president of this was Maj or 1.ewia
Ginter Of Richmond, who was known
all over, the world as manufactured
f55 53SS
Father Of Trusts. iss
TO III. b. Duke OF North Carolina
however, belongs the title of the father
OF trusts III America for in his fertile
brain was born the idea WIKI CHI has \
since been adopted by the great Cap
tains of finance throughout America,
L,trt, I, Tod f,iY lll
the great products such as steel. rom
oil. $hemp, rub ber,q LIQUOR, tWine.S g nd, In
fact a hundred others Inv the control
OF racticnllya one bod yJofs m en-, Killing
competition, and ruining those inde-s
pendent 8buslne sss men WI 9 end eavoredS
o4compete in trade Y 3s's ,Ssss
F IT sf interesting to remembe ~ that
tho beginning of the tobacco trust was
so exceedingly modest. forsit8is a we'll
known fact that Major Ginter. having
failed in business, began with Ar..aa
Allen the 8manufacture Of cigarettes
on an exceedingly small seal 81 and
without practically any capital behind
them. TIE same story Is true OF Mr..
j. B.. Duke. for in 1885. five years be-
fore the beginning of tn 9 American
Tobacco Company the firm Of W. Duke
Sons & Company OF which Mr.. j. b
Duke was a member, was in dire finan-5
cial straits and it was only a re-
duction Of the tax on cigarettes at
this time that saved tho Duke C concern
from bankruptcy. The story OF the;
Tobacco trust was told In The Times
Dispatch of Decembe J, 1904. at tbs
time when the American lob acco Com
puny (old). the Continental Tobacco
Company and the Consolidated Tobacco
Company were combined under thu title,
OF the American Tobacco Company
new, but since that time such start
ling changes have taken place that ii
rs we'll. In view OF the fact that tbs
government Is taking SUCH strenuouH
steps to stop the fast strides Of the
trust, to tell the story anew. IN ss
Cigarette Trust.
Shortly after 1885, when the concern
In which Mr.. j. b. Duke swasBa partnes
had become powerful through the in-
|, PRODUCTION Of a cheap cigarette. for
| five cents. the price before having
been ten for ten cents, the future head
| OF the tobacco trust determined to
make an attempt to unite all the great
cigarette factories OF the country. For
nearly five years Mr.. Duke 3labored ON
this scheme, but itw not until 1890
that he succeeded in bringing &tog ether
Allen s. Ginter, OF Richmond; W. Duke.
Sons s Company. Of Durham: the
York; w. S. Kimball & Company, Of
Rochester,, and Goodwin & Company.
of New York. These five concerns
were the original members Of the to-
bncco trust. and practically controlled
tho entire output of cigarettes In
America, producing IS per cent. OF the
business, The plan was to charter a
company to be known as the American
Tobacco Company, under the laws 81
i Virginia, but this plan was defeated
4 by the activity Of Mr. Hal Flood. then
a member Of the General Assembly.
The bill granting the charter was
passed on December IS. 1889, but the
next day, December 18th. Mr.. Flood
offered a resolution requiring the
keeper of the rolls to Withhold thu
I7bill, and on Defender a0th, Mr.. Fioc$
offered a bin repeating the act whiM
granted the American Tobacco COZ
panY u charter, This repeal nleas%
was finally passed on Iebruary.53. 4 IN 4
This action Of the Legisltrare, N MI
1 by Mr.. Flood, has kept much bustss
out Of the State OF Virginia. anS
TO a great extent deprived the ~. N
of n large amount OF revenue. SCliI
true that foreign corporations p
State u charter tax and other fe5s III
| the fact remains that had the Ed ilst
| can Tobacco Company been clsS Hi
! under the laws OF Virginia taS III
would have received in taxes fF---i Il
Icompany since 1903, wheI. l3i
corporation laws went into
less than sl05,725 in additi 81
amount that is now paid
4 would have averaged $21.1 81 XII a
and would have paid tha4tain. I
the Governor OF Virginia. Z, - -
I, taW Of the con1monwealt0OY tTr-3
4 tor the Treasurer. the Sc +. II ~
the commlssionersof Insp0 Y h
Commissioners OF Labor. ~
Original Cnm.T .sfS 81 II
In January; 1890. thnCh 4 -. I
| chartered under tile lasS NaA nd Il
/ sey with SCI. 900, 900 4cN. . G,