The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-06-02
FIRST FRUITS OF VIRGINIA.


FIRST FRUITS
solved. The Supreme Court of the
United States justified ti,e action taken
by the government to dissolve the to-
bacco trust. so-called. ca the. ground
that the organization tostered a mo-
nopoly and tended to suppress compc-
tition
Consumer Gets No BcucGt.
What has happened since the to-
bacco trust WAS dlssolv ed--usine, that
coiloquial name to distinguish the
original or holding company from the
present American Tobacco Company
Is competition of an intense Kind. and
yet it is competition Of no bonent to
consumers. 1t is competition which
chiefly affects tho independent dealers.
Very likely ii was this which the in
dependent dealers foresnw. ana Tor
that reason they objected strenuoualy
TO the form of dissolution accepted by
the Attorney General 4: Washington.
The best way to ILLUSTRATE the sit
uation is by concrete example. ii wc
take. therefore, the plus tobacco busi-
ness, 1t Will he possible to show this
curious and wholly unexpected develop
ment of competition as u result OF the
dissolution OF the tobacco trust.
Before the tobacco trust was or
sanized much Of the plug tobacco bust
ness of the United States was within
the control OF the Liggett & Myers Co.
of 81. Louis. There were some. MD or
SIN other partnerships u corporations
engaged In this branch Of the tobacco
business. After Che tobacco trust was
organized almost all OF The concerns
engaged in the manufacture and mar
ketInG OF plug tobacco were brought
into trust family. The manager of tho
A-!gSctt n Myers corporation, a high.
expert authority, became the manager
OF the plug tobacco department OF the
So-calied tobacco trust lut as there
was no competition between the plug
inbacco manufacturers after the trust
was organized. the great executive and
energetic administration which had
been required prior TO that time was
not neccs aary. From one point of vie ~
the plug tobacco business ran itself.
Statesmen ana Advcrtisiu;. Seen Come In.
After the tobacco trust was dis
solved, the Llsgctt * Myers and othcr
corporations resumed their original in
dependence. 1T is true tnat the own
ership of majority of these various
corporations was practically in the
same hands, and it is presumed to bc
true That 20" this reason there has been
an unaerst andine rs TO what the prices
Of this product should be.
The various selling agents ana man
ayers OF the different corporations
learned that it was expected that they
would demonstrate Their capacity to
Get large increase IN business. All OF
these employees are striving to make
the best showing possible. They are
for that reason competing with them
selves This competition, however. is
not carried on by cutting prices
"Othcr methods have been adopted
al, I.t hon i
| advertising upon large lines. an ex-
pense cut off when the tobacco trust
was organized. This competition is
aimed at the business al the 'ndepen
dents. and has already cut heavily in
to it. But it is not competition in
| stithted by trust, for there is nc
trust II is a competition between IN.
tpendont corporations formerly OF
the trust family, the desire of each plug
tobacco manufactured being TO make q
great increase in business. so that n
handsome showing would DO to thc
advantage Of the managers and selma
agents.
Printers Get some p.e.
p. What is true of the plug tobacco
! business. now conducted bv indopen-
! dents, formerly members of the to.
: h0ccq trust family. is also true OF 9th.
I or departments Of the tobacco industry
When the cigarette trust was o.
2aniZcd 1t was reported that the in.
| tense competition between the cigarctt.
I manufacturers entaiicd very heavy cN
+ penses. Among them was lthogrophing
1t was assorted. officially, that litho
Z graph advertising had cost the cigar
/ cite companies in one year about $500
600. When the merger of the cigarct<
companies was made, advertising ~
that kind was 40 longer necessary
The loss of this business was for
n ,r-gtt
the photographic companies. but til
abandonment OF expensive advcrtisinl
was "a great advantage Of the MERGE
cigarette companies. Now il is under
stood that the revival OF compctitio
between corporations witch were for
merly members of the tobacco trus
family is causing also restoration O
expensive advertising. THAT Of cO,trs,
is pleasing incident to some of tn
! photographic and printing companie,
The strange feature. however. Of thi
!