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

Among other things they have done
and are doing those hereafter spe-
ideally detailed.
with expanding purpose to do,ni-
nate the industry, defendan hts have
progressively absorbed competitors Or
driven them out by oppressively at
tac&ing and threatening to attack
with ~ferociOuS opposition and unfair
trade methods: and by the exercise OF
their great power have deferred and
prevented others from engaging in
the business.
'"Through offers of large sums OF
money, accompanied by threats OF IT.
resistable competition, they ave COM
PEELED other concerns to sell out, TAX
ing from their directors and stock
holders agreements against COMPETE
ton; by agreements and combinations
with others, managers, etc, and by
issuing in exchange stock or otherwise,
they have acquired dominion owe
competitors; they have caused the or
ganizatiOn of corporations with wide
powers, which they control, and
through these acquired the business
Of others; and by unlawful contracts
with opponents they have apportioned
the trade and commerce in tobacco
throughout the world. They have
concealed their relationship which
controlled companies and used them,
acting under the guise OF
ents, to break doWn opposition, they
have acquired monopolies of articles
necessary in manufacturing tobacco
| products. such as l%icOrice, tin-foil, etc;
they have practiced unfair trade
methods. sold their goods below cost,
manipulated the markets, and other
wise exercised their great power to
| Gain control and destroy opponents;
and they have obtained dominion over
the agencies through which tobacco
and It's products are bought and sold.
through outright ownership, by adj
v~ancing large sums c money, giving
| unusual credits, by threats to- with
| draw their goods or patronage, etc.
THE necessary leaf for all defend
ants is purchased under 2. common
| control by special agents abroad ana
in ali important domestic districts, dl-
| rectly from the W or at central
markets III various States, and Is then
shipped to and factories
in other States and abroad. OF do
mestic leaf. without competitor
among themselves, they annually &C
Quire 20 per cent of the cigar type
and more than two-thiTds of all 9TH
erS-of some more than so per cent
Ply reason Of their power IN comblna--
ton they dominate the market and
have q controlling influence upon
prices. During h year ending sep
p~roximately 475,Ooo.0no pounds Of do
nestle leaf: and during the folfoWln
year their purchases were probably
a larger proportion Of the whole
"Dy agreements among them all
supplies Except leaf) for defendants
are purchased through the Amsterdam
Supply Company, and thus competi-
ton has been destroyed.
The manufactured output OF all is
advertised. sold and distributed under
a onmon oversight, through agents
and dealers throughout the various
States and abroad as q part OF inter
state and foreign and with
out com petition
All business Of defendants IS con
Quoted without real competition
amongst them and az a part Of a gen
eral plan, agreement, combination ana
conspiracy to destroy competition
drive out and deter others
from entering. They have already dis
posed of most opponents and have OBJ
tanned such power that the remain
ing few cOnduct their business IN the
well-Srounded fear Of swift destTuc-
ton whenever defendants decide to
eliminate them. The mere withhold
ing or withdrawal Of their numerous
brands fro!n dealer, joDber or retailer
would probably render his success i'm
possible.
Tire opportunities for new compete
tors are constantly being closed; the
agencies for distribution are rapidly
coming undcr their u~ndisputed con
troll; and unless prevented and re-
strained their complete uncha1ienGed
dominion OF every branch of COM
merce in tobacco and its products may
De confidently expected at an carly
day.
The profits nccruing to the consHir-
ators have been enormous.
In 1890 the share capital of the
American Tobacco Company was $25,-
600. 0OO-$1O, 000, 900 preferred. s15,-
900, 900 COInmOn-nolninal assets bal
lanced this. (1'he tangible assets as
shown by the report of the Bureau
CORPORATIONS TO the Senate, June >,
1903, We're $3,J45,10S.) The stock was
increased to $500 0 600 and then $50.
GOO, 600 4,OOo, 000 preferred). On
preferred shares until the merger Of
1904 eight per cent annua! dividends
we're paid; on the common from SIX
ia twpntv-ninc per Ccntum. (in 1899,