14 AMERICAN TOBACCO CO. AND IMPERIAL TOBACCO (€O,
Winsron-Sarem, N. C., April 18, 1925.
We, farmers of Forsyth County, N. C., members ¢t the Tobacco Growers’
Cooperative Association of Virginia, North Carolina, and South Carolina, being
assembled at Winston-Salem, N. C., for our regular monthly county meeting,
do offer for the consideration of the Federal Trade Commission the following
resolution ,to wit: i
First. That we condemn the unfair trade practices of the Imperial Tobacco
Co. and the American Tobaceo Co. in refusing to purchase tobacco from our
association.
Second. That it is a well-known fact that these two large tobacco companies
are hostile to cooperative marketing of tobacco and are doing everything possible
to retard the progress of our association.
Third. That we feel sure that the Inperial Tobaceo Co. and the American
Tobacco Co. are being assisted by the auction warehousemen and other specu-
lative tobacco interest in their effort to destroy cooperative marketing of tobacco.
Fourth. That we are fully aware of the fact that the auction warehousemen
have at all times since our association was first organized resorted to unfair prac-
tices in the handling of the farmers’ tobacco on the auction floor in order to dis-
courage cooperative marketing of tobacco, and, in fact, we know of instances
where some of our members were paid extremely high prices for some of their
tobacco as an inducement to violate their contract with their association.
Fifth. That we believe in the principle of cooperative marketing, and, in fact
we believe that it is the only way that the tobacco growers can ever hope to re-
teive for their tobacco cost of production plus a reasonable profit.
Sixth. That we condemn the action of the Winston-Salem Chamber of Com-
merce, and other chambers of commerce and trade bodies in indorsing the unfair
trade practices of the Imperial Tobacco Co. and the American Tobacco Co. in
dealing with the tobacco growers in the purchasing of their tobacco.
Seventh. That we earnestly request the Federal Trade Commission to investi-
gate fully the unfair practices of the two large tobacco companies named in this
resolution, and also the unfair practices of the auction warehousemen in their
dealings with the tobacco growers.
Eighth. That this resolution has the indorsement of approximately 500 tobacco
rowers of Forsyth County, N. C., who are members of the Tobacco Growers
Booparative Association of Virginia, North Carolina, and South Carolina,
E. L. Jauzs, Chairman,
James G. Furton, Secretary,
Forsyth County Unit, Tobacco Growers’ Cooperative Association.
Another statement of the same character received from the loca)
of Marion County, S. (., is as follows:
Whereas we, the members of Scotch Local of Marion County, S. C., composea
of 47 members of the Tobacco Growers’ Cooperative Association in meeting
assembled, knowing that the Imperial Tobacco Co. and the American Tobacco
Co. are being investigated at the present time by the Federal Trade Commission
as regards the trade practices of the Jen) and American Tobacco Cos. in
relation to their boycott of the Tobacco Growers’ Cooperative Association; and
Whereas we know that these two companies orignally composed the old
Tobacco Trust which bought our tobacco at prices under the cost of production
om ies He of its organization to its dissolution by the United States Supreme
ourt; an
Whereas these companies have boycotted our association and refused to pay
us a living price for our tobaceo marketing through our association, and by their
actions have made it clear to the public and especially to the growers who have
suffered that the old agreement entered into by the two above tobacco companies
in 1902 still exists; and
Whereas we have seen with our own eyes the common practices among the
buyers of the American and Imperial Tobacco Cos. in boosting the price of
split crops of tobacco to a price much higher than the market price of the same
tobacco which was not split or divided; and
Whereas it is noted that various tobacco boards of trade from large tobacco
centers or markets have forwarded resolutions commending the Imperial and
American Tobacco Cos. ; and
Whereas it is a known fact that the Imperial and American Tobacco Cos. are
members of the said tobacco boards of trade, paying annual memberships dues
which said tobacco boards of trade levy: and