The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-09-28
TOBACCO TRUST AND COTTON
PRICES.

q o4op ~
n so is the cotton crop. The price
Of bac has gone down While The
price Of cotton has gone up. Las
September cotton and tobacco were
both selling around eight cents. inns
September most OF the tobacco solo
has brought less than five cents while
cotton is now over twelve cents.
Why?
Because the tobacco trust abSO-
lutely fixes the price of tobacco while
no trust as yet has been able to con
troll the price of cotton. The tobacco
trust started in to take the whole CROP
at starvation prices. The fire of out
ragged Indignation kindled under the
trust warned them that it would be
wiser to pay at least cost for the bal
ance of the crop, after having robDed
the Eastern growers who were forced
to rush much Of their crop to market
in August and September. Those to-
bacco farmers who are not required
to take prices from two cents to six
cents per pound owe thanks to the
public Indignation that found expires
sion and troubled the magnates on
Fifth aVenu
While taking the tobacco at star
walton prices, Mr.. Buck Duke, pres
ident OF the Tobacco Trust. convinced
hat the cotton crop is very short,
has joined a pool to get a corner in
cotton yarns and to bull the markets
in raw cotton. The Associated Press
yesterday said prominent tobacco in
t~erests'' are with Patten, Brown, Gates
and other big gamblers in bulling raw
cotton and heavily buying cotton
yarns. The New York American
says:
"Although continuing to deny with
a show Of Indignation that they have
formed a pool to bull cotton, James
A. Patten, William P. Brown, Eugene
G. Scales and Frank B.. Hayne re-
fused positively yesterday to discuss
a companion report concerning their
operations of still lfvelier concern to
the public. This is hat for weeks
they have been buying up all Of the
cotton yarn that has been han ging
over the market from Iast years pro-
duction, and that they now virtually
a cornered that article, which is
the basis Of the cotton manufacture
ing industry in the United States.
"The American first heard Of the
reported operations Of the pool in
cotton yarns from a Southern spin
ner at the Waldorf-Astoria Hotel, who
a just come from a conference with
two of the members. He declared That
James B.. Duke, head of the Tobacco
Trust, also was a member of the pool.
He further asserted hat While he had
the permission Of the two members
of the pool with whom he had been
in conference to tell about it, yet
he knew hat all Of them would de-.
ny it should they be asked for furth-
er information. None of those who
| were seen yesterday by American re-
pOrters denied it.
"According to the report, h pool
began quietly to buy up all Of last
years surplus yarns available about
two months ago. The price paid for
the material was or the basis Of ten
cent cotton, which was about the aver
g cost Of the staple to the %spinners
last year. The pool operated com
mission houses in New ork The
chief Of these is said to have been
the firm Of c. Fl, Pope & Co., of No.
81 Worth street Mr.. Pope, who has
been in Europe a month, Is the lar
gest cotton broker In the United
States.
ut is the purpose Of the pool to
use it's monopoly Of the yarn to sus-
tain the bull market that was started
on the New York Cotton Exchange
a O or SO ago. If they sell the
yarn, it Will be on the basis Of pres
ent market prices. In this alone the
pool will real a rich harvest. Mil
lions of dollars have been employed
by them in the yarn transaction, as
we'll as bulling the cotton market.
Their paper profits thus far are
enormous, fol- they started months
ago buying futures when the market
ruled around eight n a half. Yes
terday they cornered October cotton
and sent the December price UP above
thirteen cents-a thousand bales here.
That deal Of itself shows the power
they are now exercising.