The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1907-07-25


him. Before many years he was thu
boss. 1t is related that when the firm
was making 100000 a year and there
We're five partners James B. insisted
that he and the others should draw
$16G.GG month and no more. All the
rest went into the business Every
thing was business with James 3.
Duke appeared in New York in 1s9:
to open an Office and conduct the Dur
ham establishment from that city. HI
lived in cheap lodging house, paying
So a week for his room. Later Wher
his business was earning a great dea
more he moved into two dollar room
The dollar thus saved he needed in his
business. At a later period when the
bachelor had a stable Of horses he oc
cupied apartments in the second story
Of his stable. There was no high flying
for "Buck" Duke. That tobacco EN-
pire was yet in the future, but Duke
saw it just as plainly as he saw the
lamp post across the street. He work.
ed steadily and surely.
The American Tobacco company was
organized in January, 1890. At first II
was known as the cigarette trust
Duke of course was the head of it.
He built it, Five concerns were con.
solidated to make the American Tobac
co company. They were W. Duke
Sons & Co., Allen & Ginter, the Kinney
Tobacco company, W. S. Kimball &
Co. and Goodwin & Co. How Duke
got them into his hands may be illus.
trated by one instance of his methods
Allen & Ginter were his chief cOmpeti-
tors. Duke went to Major Ginter in
Richmond and proposed consolida.
ton. Ginter declined. Then he pro-
posed the purchase Of the Allen & Gin
ter business. Ginter laughed. He told
the young man:
"You haven't got money enough to
buy us, and you can't borrow money
enough"
1--WE are making 100000 a year out
Of our business" replied Duke, land if
necessary We'll spend every cent of it
in advertising"
Spent Millions In Advertising.
This made Major Ginter vince. The
Duke methods of advertising already
had hurt the majors firm. Duke pour
ed millions in advertising as Napoleon
poured blood. He says himself that
in his career he has spent at least $780,
100000 in advertising. Only small
portion Of this went to the newspapers.
Much Of it went to billboards. Much
more went in the shape of Autograph
pictures of pretty girls which Duke
placed in his cigarette packages. One
Of the Duke exploits was to give away
$4,000 chairs, costing so cents apiece,
with cigarettes.
Old timers in the tobacco business
and in other lines advised the young
man that he was plunging headlong to
ruin. But Duke plunged right along.
AS prizes to smokers of pipe tobacco
he wisely offered shaving mugs, clocks
and bedroom sets. Pipe smokers are
homebodies. Cigarette smokers, gen.
orally speaking, are "Johnnies," and
the pictures Of actresses caught them.
Duke understood human nature.
Duke went after the Allen & Ginter
people with deluge Of advertising
ideas. Allen & Ginter soon came in
out of the wet. With them came in
the Kinney Bros. and the other great
cigarette and smoking tobacco firms.
Advertising seemed to pay so we'll
that new firm sprang up to capture
some of the cigarette trade through
like methods. Do you remember the
Admiral cigarette? The new concern
made the Admiral and advertised il
with astonishing boldness. Just as
the millions were getting ready tc
pour in the Admiral people discovered
that they were up against stone wall
Big orders for their goods were can.
celed. The cigarette trust had gone
to the dealers throughout the country
and said to them something like this:
1--WE make eighteen or twenty brands
OF cigarettes for which our advertising
methods have created a great demand
You handle them all and make money
out of them. Now, if you sell the Ad
miral you shan't sell any of our goods
See?"
He Walked the Plank.
The dealers saw. The Admiral walk.
ed the bridge no more; he walked the
plank. 1t was all very simple, but very
serious. Anybody could make ciga
rettes, but if he couldn't get anybody
to handle them what was the use:
The Duke of Durham held all the aces
in that game.
Having conquered the cigarette
world, Duke looked about and saw the
chewing tobacco world. He went afte,
that. The Lorillards of Jersey City
and the Drummonds and Liggett {
Myers of st. Louis fought him fiercely
for about seven years, but eventually
had to lzro11ol.lo =.