The farmer and mechanic., 1907-04-23
Wickedness of the To-
bacc0 Trust Shown.
THE TRADE SUFFERS
Hundreds Of Manufacturers FOrccd
out OF BuSincSS-Prices Of Leaf
Forced Down While Every
thing Else is Steadily
BY SENATOR j. ALLEN HOLT.
Advancing,

To the Editor:-It may be ronaepl-
brrcd that Col Webb of the Southern
Tobacco Journal soon after the rise
Of the Legislature referred to- some
Of the wild and broad statements
that were made in that body abort
the effect on prices Of tobacco by the
formation of the American Tobacco
Company. He criticized Il statement
incorrectly reported to have been made
by me. l thereupOn addressed an open
letter to him repeating. what Isdid SOY
and asked him three Questions ar1
begged hun for categorical anSWer.
II he had answered as asked / might
not have troubled the public further.
/ am 10th to do so any way; but for
fear some one might infer that | re-
gard his position as Well taken. / ask
its indulgence for Il further consider
alton OF some facts, and call attention
that the figures 1 cited are correct
as to the yea1S / mentioned. did net
at the time | spoke have the full tlDa
lated statement which is appended 10
this article before me. / think IL
proper TO state tha1 between the Writer
and Col. Webb there exists the Warth-
est friendship extending over period
of twenty-five years, and nothing ]
may say must be construed as reffees-
ing on his sincerity. 1t is 4 source oE
sincere regret that can't agree Wlsk
him in this matter He regards fYSe
that Is essentially our difference.
Here are, the questions and his re-
ply as published in the Southern To-
baccO Journal:
Il DO you believe and contend that
the American Tobacco Company since
its organization has been beneficial to
the farmers by putting up prices?
-. Do you believe and contend that
said company has proved blessing
TO our tobacco manufacturers?
hplipVe
the American Tobacco Company does
not at present. crush out compeu-
tiOn th3t does not follow its lead IN
prices fixed for leaf and for manu-
factured goods, or in any other way
becomes It real competitor on Tie
market?
Answer me these questions yes
or no, for in their answer lies the
crux of the whole discussion"
Col Webb-s Replies.
"Question No /. We nave never
said nor intimated that the trust put
up prices. We have said that in oill'
opinion prices were too low WHY
these low prices prevailed we were not
able to say. We do know, however,
that ut the present time and during
the tobacco year that is just closing.
tobacco is selling for good prices. in
fact high prices, taken into considera-
tion the quality ana condition of the
crop. May we not then, in face Of the
fact that this crop IS not large one,
base our Opinin on the law of supply
and demand?
Question NO . We have never con-
tended, nor do we now contend. that
the trust has proved blessing to our
tobacco manufacturers. Many small
concerns could not exist under the
pressure of superior conditions, enjov-
ed by a combination of interests and
they quit and sold out and as far as
we know are in business of other kinds
enjoying their share of the general
prosperity Of the country. Some con-
Germs became demoralized and sol
out for fear that they would be forced
out. The independent firms that re-
manned in business and are in Dusi-
ness today, are enjoying perhaps gir.at-
or prosperity, and are doing a more
satisfactory business than they ever
did, or perhaps ever could have dcne
when competition between leading con-
Germs had forced pliceS down below
the paying point.
Question No. g. We do not believe
that the american Tobacco Company
desires ID wipe out all ompetition.
We believe that it can fix and control
prices. We do not believe that the
American Tobacco Company desires
10 fix prices for leaf tobacco 50 "
that the farmers cannot afford to pro
duCc it. The company must have II
in order to exist, and to crush the
farmers would kill tie goose that lays
me SpIIcH cSS.
Not Answered CateSOricaliy.
1t Will be seen from these three Sp"-
enc answers to my questions that ne
mas not chosen to answer them cate
Soiically. 1t would have been easy 10Y
nm TO have answered the frst one
In the negative, for he prints the sta
ustics whicn Will be found accompany
Ing this article. J have, however,
made Il few corrections where his
printer must have fallen into error.
These tables show that for the nine-
teen years from 1873 to 1891 (Wi;en
the American Tobacco Company first
began TO get in its Work) the average
pflce Of tobacco on the DanViile mar
het Tell below ten cents Il pound, bot
hVe years, and during the fifteen
Years under the active operations OF
tne trust, the price has been above
Ten cents but once, and tnat was in
I502, the year. if / am not mistaken
"Hen the Continental Tobacco = Jnl-
pdhy was an active rival. A few mo-
il"nts calculation would have shown
MN also tnat, during the nineteen
Eears above mentioned, there was
"'In o25. 5.209,iG pounds of tobacco