JIM, Teddy Roosevelt, Louisville discussed on The Money Coach Ronda Cobb
Hi everybody this is Rhonda the money coach. And I just know you're gonNA find today's show so fascinating joining us is. Is Jim run part. And he is the author of tobacco trust and trump. How America's forgotten war created big government? And this this is such a fascinating book. I read it. It's really good and it's something that I don't normally read normally a history buff but now now that I read it a like. Oh we better be reading a little more history of we want our money to turn out right because oftentimes you'll sit back and you wonder how in the world did our government get so big and so. Jim is going to be here to help us. But Imagine Jim started out as an entrepreneur is also an amateur historian and he's the CEO of the Rumford Industrial Group. Group is originally from a Really Beautiful City called Louisville Kentucky but he grew up in Bracken County and now he resides in the Dayton Ohio area. So welcome to our show Jim. We're so glad you could join us. Well thank you run the thank you very much pleasure to be here so tell us what struck accurate. Just what made you start writing this book because it's so cool how it starts and how you go through things well. The book started on my great-grandfather by the scrapbook and back. A hundred and twenty years ago there was a a thing called the tobacco wars that very few people even know about and the tobacco wars ran from nineteen zero to one thousand nine hundred eight and what happened is you had The tobacco industry was doing very very well with tobacco. Farmers Eighteen seventy eighty in eighteen ninety s so tobacco farmers making five ten twenty cents a pound for tobacco okay. As tobacco processors would come out the farms also the country and bid up the tobacco and buy tobacco to get their flavors and get their. Are you know smoking tobacco chewing tobacco pipe tobacco or whatever it was then Alabama bucktoothed or better known as James Duke. He Begin to buy up the competition so he produced what's called a monopoly and its vertical integration. Where you buy your competition up and then you are a monopoly? With the same time. As he became a monopolist he was the only buyer. Then he was going to He was in an octopus which meant he was the only buyer in town and the price went from The what the prices were down to one or two cents a pound. The tobacco farmers couldn't make any money. Now in those days you had the banking trusted steel mill trust and world. Trust all the trust so all the rich guys kept their money hidden hidden from the public. And they also pay very very low wages to workers who would work and so they There was a the share. Sure Sherman Antitrust Act Eighteen Ninety Maze monopolies illegal illegal today. So what they did is they gathered together about ten thousand farmers merchants the sheriff the judge And became got a vigilante group called the night writers and it was ten thousand of them strong. This is about nineteen too but the tobacco awards awards encompassed six hundred and fifty thousand people were involved in this war so it was not a little thing was big. And so the night riders would go out and and find out who was selling to the the trust And they would pull them out of their homes horsewhipped them burn down tobacco barns or run their horses through the tobacco field and said you will not sell to the trust. It's a secret organization. And so that's what the big war is about then as Teddy Roosevelt comes along. And he's a trust buster and he got rid of all the trust with the Supreme Court and Supreme Court on on December eleventh. Nineteen Eleven John D. Rockefeller was brought in and they broke up piz monopoly The oil trust made him so off. He broke it up into about six or eight different companies and you sort of standard oil. You had Exxon Mobil Texaco and all those companies. But he no longer had a monopoly and that same day they brought in James Duke or buck they busted up the tobacco trust in. Turn that into about six or eight separate companies also and those two guys made more money broken up than they ever would have done by themselves so then the rich guys Rockefeller The Duke and several others. They go down the JEKYLL island. And what did they come up with. Nineteen thirteen. They come up with the Fed and the IRS and that's how big government started now. They have money because they're taxing The folks so this goes on and on and on on and so you fast forward into say the mid fifties when Eisenhower's in office and the deep state was pretty well entrenched by that time so so then the come up to present day and we've had monopolies now working for the past thirty forty years they'd be like The Google facebook. Those guys are monopolised. What does the same thing as what guys did? A hundred twenty years ago. They would buy out their competition petition. Their competition would come in with a great ideal and they would give them so much money for the company that they couldn't turn it down so then they these companies have fifty to one hundred separate companies that they control and they have become monopolised again and so the big thing was hasn't happened yet but Donald well trump. I view him like Teddy Roosevelt. Save Tom Donald Trump up the monopoly with the help of the Fed and the IRS. And they're already under investigation. So that's kind of Wordstar word ended so when we wrote the book by One. Great Grandfather's name was George Washington Kenny. He was a tobacco buyer Spying tobacco from farmers he didn't have barnes would process it Hiram back the process for market when he was the one that would be a target for the night writers then my other great grandfather George Washington jet. He was an eye writer so one day when my grandparents were young kids. Mr Jet. Come up to Kenny's house with a band of writers. Want him out of the house or smoking real Dan and burned down over tobacco. Barns and so my family's part of it on both sides gives you a brief outline of what it was mark. Oh my gosh. That's amazing. Well I got a little bit of an education years ago. I got transferred to a District Office in Louisville Kentucky when I worked for a fortune five hundred chemical company and we. He ended up buying this beautiful Victorian House in Henry County and the House with tobacco poundage. And I I looked at the house and it had it had maker but I looked at that and went. There is no way anybody has farmed anything on this tiny acre in. And who knows how long I don't know what this tobacco poundage is. I don't know anything about it. And the real estate estate agent that we used her husband was the broker and he came to me and he says well I know you all don't WanNa grow ear tobacco. I'll buy that poundage from you and I thought to myself. No wait a minute. If it's that valuable asking me for the day after we've closed on the house and we haven't even moved our furniture in yet. I better do a little research by find out what we're talking about your smart girl with a lot of money so the entire time we lived there so I a ended up saying you know. Thanks but no thanks. Cause as opera was I've kind of low ball and And he took it real well. WHO's still friendly? And then we got a local farmer who had plenty of acres and plenty of experience and he knew what which end of the tobacco plant was wet. UH WE LEASE TIM pounds and so every would pay to lease and then he would go out and grow and whatever the money he made between what. He paid us what they pay him. That was his prophet and paid for all of his expenses and stuff and the whole time we lived there. I never raised the rate of what the lease was per pound because I felt like well. The market fluctuates. And it's just additional income to me and and I felt like while he's doing all the work so I'll just give him a little leg up if you know as time goes on and the price increases than he makes a little bit better margin so we never increase the least price the whole time but how much. How much money did you get off your Acre Tobacco over the years that we lived there with quit? Lived in it just just one year I got. I don't even remember now that we have like towns plant hundred Yeah it was a halfway decent amount for an acres we note and I'll be four. Maybe four five thousand dollars. I mean it'll be bad. You know. Pay The taxes and then some so you you never got you. You didn't have the pleasure of raising tobacco did you. Did all the work. He didn't work the private to input he all that sweat equity in it. I don't know if he actually made a profit or not when I finally learned what it took to raise tobacco. I'm not sure how much profit they're really make me over there. Well my grandfather said if you've not raise the crop backing never worked a day in your life I could see that you know at one point After the the district office level closed and I owned my own business business. I had a lady that worked for me and she and her husband raised tobacco and she would always say okay. Now I'm GonNa go home and we're going to do eight to twelve hours after the other thing that she'd already worked ten hour day for me The next day you know fingers bloodied and just exhausted. And I'd be like Oh my God you know and every day she'd say you WanNa come help I'd be like at no thanks. I like my fingers exactly exactly the way they are. You know it. It's hard work. Well when I was eleven years old my grandfather sent me up with his neighbor. They they had one tenth of an Acre Tobacco and so He said let the boy Share do raise the crop of the back of this year so I did and then when it came time to sell it which around Thanksgiving time or sometime that area you get you the warehouse and sell it But one tencent Acre brought three hundred dollars. I got a hundred and fifty dollars but this is in the early early nineteen fifties three hundred dollars a by a very nice used car absolutely and so. That's brand new. The three hundred win behalf of seventeen hundred dollars about your.