The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1911-07-18
AND UP GOES THE
.P|EDM0NT'S PR|CES
The Outlaw tobacco Trust
Is Now Now Doing
the Retail Trade
J0bBERS AND RETAILERS
While Suit for Damages Against IL
Was Going on in Raleigh the Amer
lean tobacco Company Advanced
Price of Cigarettes and Its Payment
of Any Damages VIII Come Out of
the PockctS of Others

If there is one concern on the face
of the globe that is always on the
lookout to take care Of itself. tn I
concern is the American Tobacco
Company. 1t has many WAYS OF do
dollars and cents 4 takes care thar ii
comes out Of the pockets Of The pub
lie that buys its goods.
That is clearly shown in events thu
come right along With the recent dam
age suit of the W~are-kram@r n'obae-
co Company gains he American TO-
bacco Company when there was Il re-
coVery of $50, 600, which under the
Sherman Antitrust Law becomes
$50, 600, the amoun OF damages De
ing trebled. and To this is TO be added
the fee of $4,000 allowed counsel
for the plaintiffs, and also the c~s
II the case.
The American Tobacco Company is
going 10 get that fine out of the job
bers and retailers who handle its
goods and it went after getting more
cash While the suit was going Oh IL
Raleigh. running up the price IN the
jobbers and retailers who handle
Piedmont cigarettes.
The first news Of the recent IN
crease in the price Of Piedmonts came
from retailers in this city, and hey
say that the increase came about
the first of July, while the amaze
suit against the American oha
Company was going on. In June the
retailers were paving for Piedmonts
$3.75 a thousand with free goods in
Old Mill cigarettes to the value Of
1G cents. and 10 cents off on every
900 cigarettes, this making the net
price Of Piedmonts $50 a thousand.
With the coming of July the price
II ~. 90 Snayl1.al - A0
with no free goods and nothing off.
This means that the price was increas-
ed 81 cents a thousand to the Ie-
taller.
The jobber got it in the neck also.
for the price has been increased on
him. What the increase is exactly Is
hard even for a jobber to figure oHt.
for the American Tobacco Company
has an intricate way Of selling cigar
cites to the jObber. In June the price
was $3.50 a thousand with An inside
rebate of 10 cents a thousand ana a
conditional bonus OF 10 cents that
brought the price down to 1910 a
thousand. Then on top of this there
was another bonus of Il per cent,
this conditional on the jobber selling
in excess of the sales OF the same
month of the previous year. With
july the 10 cents bonus was cut Oft
as was the inside of 10 cents, and
this leaves the Jobber up against the
proposition Of getting d lower price
by making an increase on his busi-
ness of the previous year hy months
This is only a partial explanation
of the way the American Tobacco
Company figures IN its sales to the
iobber. and these figures are constant
~ changing. so that IL Is A diln"ult
thing for a jobber to keep mp with
the prices he is paying for the Gig
~arettes that he buys. But be the dis
counts as they may. he knows that the
prices are higher now than they were
in June. And because there is little
money to be made on Piedmonts 0n
the latest deal soIne jGbbers are not
ordering cigarettes at this time.
And in these days there are no cou-
pOns in Piedmonts to cut down tie
price to the consumer az vas the case
when White Rolls" were on the mar
ket. and the consumer paws tho tive
cents a package. the jobD.r and The
retailer being called on hy the Amer!-
can Tobacco Company To pay more
for their goods. So while there mas
been a verdict against the American
Tobacco Company the damages 4ro .
be paid out Of the pockets IF the Frtu
handling the cigarettes and j. not 70
come out Of the strong box OF the To
bacco Trust.