THE TOBACCO TRUST.

Gisborne Times, Volume XXV, Issue 2095, 3 June 1907, Page 1

THE TOBACCO TRUST.

FREE BUSINESS RESTRICTED.

In - view of the cable message announcing President Roosevelt’s prosecution of the American Tobacco Trust, the Evening Post has been making some inquiries in figton. '“Our main grievance against the Trust,” said a local retailer, “is that we cannot go to the warehouse and make terms for largp quantities of tobacco. The merchants are supplied with schedules, and they are not allowed to sell at any price except the ones marked. This may be done to prevent compeititon among? st warehouses, but is stops free busiWe could buy much cheaper before the Trust came than we can now.”

Mr D. Nathan, of the firm of Messrs Nathan aucl Co., said that a locttf' tobacconist started manufacturing cigarettes, and developed an appreciable business in this line. He was cut off the Trust’s list, and no explanation was offered. Mr Nathan gave instances of men who had been dealing in a couple of nontrust lines of tobacco, and who were (Jjbliged to desist in the face of a threat that the trust lines would be stopped. Messrs Nathan and Co., when they were handling'trust lines, onco sent for a shipment to Melbourne. “We won’t supply you unless you sell our goods around Wellington,” said the trust. Later on the firm took over the (agencies of a couple of lines which smaller firms were afraid to retain, and of course Messrs Nathan were definitely isplated. However, they managed to get supplies of trust tobacco from local merchants, aud the}' also found that the retailers, whose feeling was against the trust, were supporting them. “We believe that the trust is willing for us to join in the combination now,” continued Mr. Nathan. They are anxiqus fqr us to jqin anfl still let us keep our agencies, but the local agent Wants us to sign a list and undertake to sell goods at stated prices. We refuse to do this, because we can produce proof that other merchants do not keep to the prices.” He added that ho personally had nothing to say against the trust’s agent.

Discussing tho question generally, Mr. Nathan held that if was not wrong for tho persons running a proprietary article to try to fix a price for it for their own safety and to enablo all the pesons handling the goods to mako a living, but ho submitted that tho tobacco trust’s mehod of doing this thing wero unEnglish. It is stated b.v a commercial man largely interested in the tobacco trade heiV'that the American Tobacco Company of Now York, which President Roosovelt is prosecuting, doos no business in New’t Zealand. Some years ago there was an “American Tobacco Company of New Zealand,” but owing to confusion with the American Trust this company’s name was changed to tho British Empire Trading Company.