The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-28


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government took over tho industry
and turned into the treasury the pro-
hts that would have gone to the
trust.
In 1901 the trust secured control OF
several large factories Iii Germany,
ana In 1902 the Mexican tobacco In
dustry4 passed into the hands Of the
trust at acost Of sa,ooo,ooo.
The English War.
The most Interesting phase of the
fight for supremacy on the part OF the
trust occurred iii Great Britain when
Mr.. Duke attempted to gain posses.
sion OF the tobacco monopoly within
the United Kingdom. In 1901 the trust,
through the British Tobacco Company,
q subsidiary company, purchased the
great tobacco plant known as ogdens
Limited This concern Immediately
began to cut prices on cigarettes to
English jobhers. and the Independent
manufacturers In Great Britain or
ganized the Imperial Tobacco Com
pany to fight the Duke invasion. The
Imperial offered to pay job,oers $780,
600 annually who agreed not to han
die goods made by the American COM
pany. The trust retaliated by Offer
Ing oil dealers who handled their goods
for four years q part OF the profits OF
the Ogden Company in addition to
bonus. OF $l,o0o,o0o annually. somc
fer. which meant distribution among
them Of sl.2oo.ooo year. This fight
meant loss both to tho English and
American manufacturers, and an un-.
Outstanding satisfactory to the Amer
leans was arrived at within short
space of tirne.
S7,500,OOo for Duke.
The Imperial Company paid Mr.. Duke
personally S7600.000 to withdraw from
the markets OF Great Britain. and the
trust was given option on one-third
Of the stock of the Imperial Company,
which amounted to s100,oOO0o0. In
order to prevent any further clash Of
interest a company, known as the
British American Tobacco Company
was organized to control the trade with
capital stock Of s30000,000. of which
the American$trust secured o-thirds,
being the control, and Mr.. J. B. Duke,
was mad eespre sident of the British
| trust. 3trhi s'rplaced Mr.. Duke at the
head of tliegStobacco Industry OF the
1 entire world y, ~
Controls the World.
4 The entire tobacco interest OF the
!, world now being under control OF the
/ trust.}it was decided that there was
i no coca sion TO carry on the American
business with three companies, the
i American Tobacco Company. the Con-
4 tinental Tobacco Company and the
4 Consolidated. and, therefore, IN 1904 all
4 Of these companies were merged under
4 the name OF the American Tobacco
4 Company, which controls 20 per cent
4 Of the entire American trade in cigar
4 cites. plug, chewing and smoking to-
4 bacco, 80 per cent. OF snuff. rs per
! cent. OF the cigar Industry, and which
possesses It's own licorice plant. tin
Il foil factory, pipe mandatory. a half
I dozen machine companies. as we'll as
Il Wholesale and retail agencies in Cuba
A and In the United States. and extensive
n tobacco lands In Cuba, Porto Rico and
1.-THE United States. The real magni.
/. tude of the trust will be appreciated
when 1t is known that It controls
& through It's companies and its subsi'
diary companies, more than 100000.
900, ana that 1t has monopoly Of
manufactured products and the mar
ketings of tobacco goods.
5 In no other trust has there beer
formed so splendid and perfect an or
, ganization as the tobacco trust.
z Growth OF Trust.
Some estimate can be made of the
z wonderful growth OF the tobacco trus
when 1t is considered that In 1890
seventeen years ago, the capital O
the trust amounted to s25,o0o.0o0 Will
at the end Of business in 1906 the cap
tal invested in the American To
bacco Company (new) amounted t
so7s,s2s,5s4.1s, and to this amour
, might be added the enormous profits