The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-01-19
AMERICAN TOBACCO
COMPANY, A TRUST
Ex-senator Hollis Reply
to a Critic
INDEPENDENT FR0zE OUT

NO Interest Beyond That Interest
That Concerns Every Public and
Private Man in the Affairs of His
Countrymen and Should Cause EV-
cry Thoughtful Man to Lend His
Influence in Securing to Every Man
Who Tiiis N Soil. or LabOrS With
His Hands His Riehtful Return on
His Product and Share of the Pro-
cceds OF His Labor"
Extracts from an Article by cX-Scn-
ator j. Allen Holt. of GuilfOrd. N
reply to Col. arland !. Webb, OF
the southern 1obacco Journal, who
had accused him of using incor-
rect figures in his speech in the
Senate on the Antitrust Bill. Re-
published from h Farmer and
and Mechanic, Webster,s Weekly,
and the Greensboro Patriot; with
table of all sales on the Danville
Market from 1873 to 1896, inclu-
sive.)
1t may be remembered that Col.
Webb. of the Southern Tobacco Jour
nal. soon after the rise of the Lesis-
laturc. referred to some Of the wild
and broad statements that We're
made in that body about the effect
on prices of tobacco by the forma-
ton of the American Tobacco ON
pany. He criticised a statement in
correctly reported to have been made
by me. | thereupOn addressed an
open letter to him repeating what
/ did say. and asked him three ques-
TONS, and begged him for a categor-
zeal answer. If he had answered as
l asked | might not have troubled the
public further. / am 10th to do SO
any way: but for fear some n might
infer that l regard his position as
Well taken. / ask its Indulgence for
a further consideration of some
facts, and call attention that the fig
ures | cited are correct as to the
time / spoke have the full tabulated
statement which is appended to this
article before me. l think it prOpC
10 state that between the writer and
Col. Webb there exists the Warmest
friendship extending over a period of
twenty-five years. and nothing | may
say must be construed as reflectins
on his sincerity. 1t is Il source of
sincere regret that / can't agree with
him in this matter. He regards the
trust as res adjudicata and l do not;
that is essentially our difference.
Here are jhe 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 bcnc-
fetal to the farmers by putting up
prices?'
80. DO you believe and contend
that said company has proved a
blessing to our tobacco manufacture
ers2"
IS. DO YOU believe and contend
that the American Tobacco Company
does not at present crush out compe-
tft'on that does not follow it's lead
in prices fXe for leaf and for man
ufactured goods, or in any other way
becomes a real competitor on the
/ market2
Answer me these questions yes
or no for in their answer lies the
cTuN of the whole discussion"
Col. webb Replies.
Question No. 1. We have never
said or intimated that the Trust put
up prices. We have said hat in orr
these low prices prevailed we were
not able to say. We do know, how
ever, that at the present time, and
during the tobacco year hat is just
closing, tobacco is selling Tor good
prices, in fact high prices, taking into
tttlSlttEdLloD lile qlldllIN ana cO0dl-
ton of the crop. May We not then.
in face of the fact that this crop is
not a large one. base our opinion on
the law of supply and demand?
question No. 2. We have never
commended, nor do we now contend,
that the Trust has proved a blessing
to the tobacco manufacturers. Many
small concerns could not exist under
tire rfcssUrT OF superior CondItfUns,
enjoyed by a combination of interests,
and they quit and sold out. and, as
TAR as we know, are in business of
other kinds enjoying their share of
the general prosperity of the %ountrX
Some concerns became demoralized
and sold out for fear that they would
be forced out. The Independent firms
that remained in business, are in
business today. are enjoying perhaps
greater prosperity. and are doing q
more satisfactory business than they
ever did. or perhaps ever could have
done when competition between lead
ing concerns had forced prices down
below the paying point.
Question No. . We do not believe
that the American Tobacco Company
desires to wipe out all competition.
We believe that it can fix and con-
troll prices. We do not believe that
the American Tobacco Company de-
Sires to fix prices for leaf tobacco 50
low thai the farmers cannot afford
to produce it. The p must
have it in order to oXist, and to crush
the m would kill the goose
thu lays the golden egg.
Not Answered CategOricaIly.
1t will be seen from these three
specific answers to my questions that
ne has not chosen to answer them
categorically. 1t would ave been
easy for him to have answered the
first one in the negative, for he fur
r3ichaS statistics uhjch will he f0In1
accompanying this article. 1 have,
however. made a few corrections
where his printer must haze fallen
into error. These tables show that
for the ~nienteen years from 1873 to
1891, (when the American Tobacco
Company first began to get in it's
work.. the average price Of tobacco
on the DanVille market fell below ten
cents a pound. but five years, and du-
ring the active operations of the
Trust, the price has been above ten
cents but once, and that was in 1902,