The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1913-07-02
No Competition For To-
bacco Allowed.
FORCED TO Sell THEIR CROP
At Cost of. Produetion-Tes.
= tim0ny of Men Familiar
With Situation.
ACCUSE A BRITISH CONCERN

Congressional Committee by Hen
derson men to-day that the Impe-
rial Tobacco Company holds domi-
ne@ing and oppressive sway over
the Kentucky growers west of
Green river, while the American
Tobacco Company monopolizes the
State tobacco industry east of that
river. The witnesses further said
that for seven years the Stemming
J District Tobacco Association, en-
bracing five counties, with Hender-
son as headquarters, has been
forced to sell its crops to the Brit
ish concern at the bare cost of pro-
duction.
William Elliott, general manager,
K. G.. Thompson, secretary, and
James N. Banks, secretary of the
Henderson county board of the
Stemming District organization.
were those who appeared. The
purpose of. a general investigation
into the tobacco trade by the Con-
gressional Committee, headed by
Senator Martin, of Virginia, is pri-
marily to procure information that
will lead to relief for the tobacco
farmers of this country through
reciprocity treaties with European
nations.
The Kentuckians, whose associa-
tion produces from 10 to IS per
cent. of the dark tobacco in the
Henderson territory, testified that
the Imperial Company has controll-
ed the prices paid for their tobacco
for years, and has so cowed the in
dependent buyers that they no lon
ger will make advance bids for the
stemming district crops. All other
buyers trail the trust" from ne
cessity, they said.
The same tactics are pursued in
Great Britain by the Imperial,
which is in league with the Reggie
buyers of Italy and other countries
of continental Europe, they assert
ed. Never has a Reggie buyer Of
fered anything but the "trust-made
price"
At the instance of Representative
A. o. Stanley, who was present
throughout to-day's hearing, the
stemming district officials introduce
ed in evidence a copy of the indict-
ment of the Kentucky branch of the
Imperial Company for criminal con-
spiracy in restraint of trade in the
Henderson Circuit Court, trial un-
der which will take place in Sep
TENDER in Union county.
The committee to-day subpoen-
aed as a witness Commonwealth
Attorney Sam F. Dixon, of Hender-
son. A. b. Jarvis, of the Stemming
District Association, will also be
witness. These two are expected
to testify here one day next week.
William Elliott was the first wit
ness to-day. He testified that the
Imperial Company always opens the
market. Only once in his expe-
rience had an Independent bought
first. That was the case of an Eng
lishman few years ago, who pur-
chased 100000 pounds.
THE independent buyers always
wait for the trust to Open" said he.
They know the trust controls the
market in this country as well as In
England, and they follow the prices
offered by the leaders. They real
ize that whatever the Imperial pays
fox tobacco. they must pay on both
sides of the Atlantic. visit Eu-
rope twice and sometimes three
times year, and have observed
the manner of the trusts operations
closely.
Our Kentucky tobacco is made
up into three grades, known as the
poor mans. 1t is called Irish roll,
pigtail and twist. and the trust does
not make penny on the tobacco.
They follow that policy, and do II
effectively. TO kill the little fellow.
There are very few Independents.
only the strongest. who can with
stand that system. The trust sells
this class OF tobacco at cost and
makes its profit on proprietary or
fancy brands of, tobacco. II Is
big profit, too"
In response TO questions OF Rep
resentative Flood. OF Virginia. and
Representative Stanley. Mr.. Elliott
said the Imperial Company and the
Italian Reggie buyers get the raw
material for the fancy cigarettes in
Virginia bishts.
The Imperial Tobacco Company
is trust on English tobacco" said
the witness and 10 the sole buyer
Substantially in cur territory. '''fhe