The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-01-11

$500 four per cent bonds and for the
latter equal Of bonds. The
stock Of the Consolidated Company
was originally $4,000, OOO-aftcrwards
s40,o00.00o. a dividend of twenty
per cent was paid during 1902. The
net surplus from the 1903 earnings
exceeded $4,000, 900 and the annual
statement showed total assets exceed
ing S214, 600. 600.
IN 1904 the three old companies
We're merged; 1888 Ia six per cent
bonds We're given for each 500 pre-
ferred stock of the American Tobacco
Company and Sis 2-3 for each S1C0
on pany n SIG % for each 500
preferred stock of the Continental; and
similar exchanges were made of other
securities, h holders of the Con-
solidated Tobacco Company shares
obtained the common stock OF the
merged company upon which since
1904 they have received dividends
varying from twenty to thirtS-tWo per
cent per annU1n II total assets
shown In 1906 statement exceed $o78,-
600, 000-accumulated surplus $780,
0G0, 900, and the net surplus from tina
years earnings, after deduCting diVi-
dends and expenses, exceeded Sc, $780,
600.
"Th. combined assets OF the Ameri-
can Company and its subsidiaries
Statements 1900, including the I'M
peria1, now exceeds $500, 0G0. o all
used for one end; and all, except the
Inlperia1s, under the absolute control
OF six or eight men who hold $40
$50. O00-a majority Of the American
CoInpany's common stock Sixty sub
Sldlary companies are defendants
many others operate III this country
and abroad.
h brief asserts that little evil
dencc was introduced concerning the
prices Of leaf tobacco, but The record
| shows that demand has steadily In
creased while The supply has decreas-
ed that prices dropped below cost
OF production Immediately after the
combination OF 1902 between the I'M
| pcTial and American companies, and
that the value of fancy grades, nearly
Trust have declined, while less ex-
pensive ones for which SOM compe-
tition still exists, have materially a
vanced. The decreasing supply.
larger demand, greater cost Of land
and labor, and weli-known, concerted,
protect themselves sufficiently account
for any advance. The destruction OF
competition and eVer-increaSing puT-
chases certainly enable defendants IN
duly to influence the markets.
The individual dcfendants-offi-
GERS, agents and directors OF the cor
porations-control the combinations
complicated affairs. James 3. Duke
has been the central figure from the
beginning and the present situation
is due largely to his masterful manip~
u~iations."
Citing unfair and oppressive
methods of the trust, this case, which
is Of interest to North Carolinians, is
mentioned in the brief:
The most profitable business Of r.
I. Richardson, Jr., < Co, Of North
Carolina tmanufacturers of smoking
tobacco) was il Mississippi, where it
held Fl leading position. In 1903,
with purpose of destroying this, the
American Tobacco Company began
agsressiyely to sell in that State be-
low cost and the Richardson Company
was put in well grounded fear Of swift
destruction. At an Opportunc mo-
ment an officer Of the American Com
pany approached the stockholders
suggesting an arrangement and this
resulted in q contract for control by
the American Company. The origi-
nal owners, charging fraud, are now
seeking to annul the arrangement
StOvaine.