A Millionaire's Rise

Taranaki Daily News, Volume XLVII, Issue 7878, 21 July 1905, Page 4

A Millionaire's Rise

Mi Duke, the founder of lliv Ainriit. all Toi/acco I nmp.uiv. whose death is reported from .\oi ih Carolina, was a small farmer, gr<m|iiiK a little tobacco on his own ae Count, when llic Civil War j i.,n. . jllilll. At till' end 01 llic war In- an.. Ills 'tlplil suns Wi'l'c pisnrilcss, mi

thev decided u> si an tobacco manufacturing. Mr Washington Duke's stable at Durham was llic l)< v^iriii iiil; to tin- American Tobacco Trust, wl.-< t now controls the whole of the trade ill the United Stales, anil, through I the British American Tobacco Con,Ipauy, lias a large share in the Knglisli tobacco Iraile. In lltat sla!.*e Mr Duke and sonic of his buys c:.t the tobacco lie had .grown, while the clik'sl ami ablest of his sow, Mr .J. Buchanan Duke (known all over the wc.rlil now as "Buck Duk.'-, went round lire Southern cities selling it to tobacconists. Gradual; A the business grew, until in IXM i Washington Duke sent his son Buchanan Duke to New York to open a cigarette factory. Although at first they made cigarettes by hand, the rise of the Dukes to fortune was chiefly due lo the cigarelte machine ' They secured the exclusive rights for several years of the Bonsack vig- j arette-making machine which at that i time was the besl in the market. ] antl with it they fought the great firms of Allen ami fiinlcr, Kinneys, Kimball, and the others. This desperate light of price-cutting anil lavish advertising was conducted mainly by Alt' .lames 11. Duke. Mr Baron, lilt' well-known managing director of the Carreras Company, saitl to be •Star' reporter that Mr Washington Duke proudly told liim that his son "Buck" had made, him more famous than if jie had been President of the United Stales. While the old man stopped at ltome and grew and cut llic tobacco, J B Duke carriri out tlit" daring campaign against tinold firms. Tlrey gave away ptmli, graphs with their cigarettes." Duke gave away albums with his cameos ' He spent £150,(100 on the one ilrn. of afbums. None of the competitors made any profits, but Duke'., financial backing lasted longer t!,a:his rivals', and in 188!) all these civ,arctle firms were amalgamated in the Cigarette Trust, with the Dukes at the head of it. The profits < ; i this combination soon amounted to about 25 per cent, per annum on a liugiely-inllated capital. By-and-t.',.-the American makers of plug tobacco began to get alarmed at the Dukes's operations, and they starlrl to manufacture cigarettes. Prompt Iv there was war. The Dukes began ti" ( make chewing tobacco. . They brougli' out a "battleaxe brand," which, In lavish advertising, gills, and h,onuses Was absolutely thrust into the i;|n i mouths of the American public. The Lorillaids, the Drummotid Tohacio Company, Legett and Myer, ami the, other plug tobacco-makers formed a combination to light "li.ittlea.ve brand," hut i; elided in a deica! a!ter thousands of dollars had 1,-i, n expended in a light which lash-tj two years. They had to let the Duke, into the Continental Tobacco Com. pany, which is now the combination controlling the plug tobacco trade. The stock once feli from lull to |:;, antl then Mr .1. H. |) u ke Innig;.' most of it up. N o w ii stands a:

over ! The Dukes - Kugland, however, Was less success - ful. ffln'ii lUt-y 'bought oni the Oldens the British tobacco niaiiiiUriur er.s forme:! a new Trust, and ni.ei such a good fight ( ,f j; || la t the Am' iTjfa.ii Tobacco Company, aTlt-r a f t -v. ni'-utlis. proposed an alliance. Or, of the Duke family had an unfurltieate experience last year, ills far.ii■ - seekin- to put him in a lunatic asi lum lo prevent him marrying an a' l venturess.