Happy B’Day James Duke: The Tobacco Tycoon Known As “Father of Modern Cigarette”

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A shrewd businessman and an investor who is often referred as the ‘Father of the modern cigarette’ was born in a modest family. He lost his mother in his early childhood and tackled poverty to become one of the most influential people in the USA’s history. The ‘comfort zone’ was never meant for him as he always focused on expanding his businesses in every way possible. On his 166th birth anniversary, today we remember such an extraordinary personality James Duke.

Even being from a modest background, he was able to build a huge empire, trying his luck in every business and working from dusk till night. The tobacco Tycoon mechanized the Cigarette manufacturing process, built the largest Hydroelectric plant of the 1900’s and donated close to $1 billion through his endowment to date.

Full Name: James Buchanan Duke

Born: 23 December 1856, in Durham, North Carolina

Death: 10 October 1925, in New York City, New York

Enumerating this many-sided man in a single is an impossible task, yet this profound figure had many ideas and facts that are still unknown to many, I have striven to bring these facts to you:

  • James Duke was named after the President of United States James Buchanan and nicknamed as ‘Buck’.
  • As the Civil War was raging the USA, his father – Washington Duke – had to join the forces, leaving his children in relative’s hands.
  • In 1865, Washington Duke started his first company named W. Duke and Sons, along with his sons. They began producing the pipe tobacco under the brand name “Pro Bono Publico” (“For the Public Good.”).
  • Technological edge: Duke decided to mechanise cigarette manufacturing by installing 2 cigarette manufacturing machines designed by Virginia-based James Bonsack.
  • In 1885, James Duke acquired a license to operate the first automated cigarette making machine. Interestingly, by 1890s, Duke supplied roughly 40% of the American cigarette market (then known as pre-rolled tobacco).
  • In search of new markets, he shifted to New York and established a small factory with only $100,000. During the day, he used to look after the factory while in the evening, he used to visit the retail stores to market his product. This, as a result, established a connection among the customers and the retailers.
  • Pioneer advertiser: Free samples and coupons, imagery on posters and billboards, he spent around $500,000 on marketing alone.
  • In order to be at the epitome of the tobacco market, James Duke consolidated four major tobacco competitors to form a new entity named “American Tobacco Company” in January 1890. These five constituent companies of American Tobacco – W. Duke & Sons, Allen & Ginter, W.S. Kimball & Company, Kinney Tobacco, and Goodwin & Company – controlled 90% of all tobacco sales in the United States.
  • Surprisingly, Jame Duke’s tobacco business grew so big that the Supreme Court had to issue an order its dissolution. This was an attempt to end the monopoly of the Duke in the tobacco industry. However, it had a little impact on Duke’s American Tobacco Company which was still controlling 40% of the market share even after the dissolution.
  • After dominating the US market, James Duke sought to rule the British market. After a few attempts, the United Kingdom’s Imperial Tobacco Company and the United States’ American Tobacco Company agreed to form a joint venture, known as the “British-American Tobacco Company” in 1902. James Duke became the chairman of the newly formed company.
  • Today, the British American tobacco is the world’s largest tobacco company with a net sales of $35.32 billion.
  • New Ventures: Invested in banking, textiles, railways and hydroelectric power. His main focus was on abundant natural resources.
  • Fascinated by the power of rushing water, installed 35 fountains at his home in New Jersey. The water rushed so high that the scene became aesthetic and people flocked to watch it.
  • James Duke was a charming man and a devoted husband and a father: A letter to his daughter reads “You certainly are the dearest little girl that any daddy ever had and your affection and devotion towards me is the brightest spot in my life”.
  • In 1905, Duke started his next venture: He acquired land and water rights along the river Cawaba for his hydroelectric power project. Within 2 decades, it supplied power to more than 300 cotton mills and boosted employment in the region.
  • Philanthropy: In 1924, Duke’s endowment was established with $40 million, 32% of the endowment’s annual income will benefit the Duke University- Then Trinity College. It’ll also support other educational institutions, orphanages, healthcare organisations, and Churches.
  • Legacy: His legacy continues even after his death in the form of his generous deeds, in every innovation and in every institutional advancement.
  • James Duke left the world 10 months after signing the endowment suffering from a blood disease that has a cure in today’s world and upon his death, he left additional $67 million for the endowment.

The post is a part of a B’day Series where we celebrate the birthday of renowned personalities from the Tech Industry, very frequently. The series includes Entrepreneurs, C-level Executives, innovators or a renewed leaders who moved the industry with his exponential skill set and vision. The intent is to highlight the person’s achievements and touch base the little known, but interesting, part of his life. You can see the list of all earlier celebrated tech personalities, including Mark Zuckerberg, Marissa Mayor, Sean Parker, Andy Rubin, Julian Assange, Sir Richard Branson, Sergey Brin by following this link or subscribe to your daily newsletter.


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