About 1879 James Buchanan Duke entered into the smoking tobacc business against the Bull Durham Brand, also from Durham. Two years later, James Bonsack invented the cigarette-rolling machine which produced over 200 cigarettes per minute. Thereafter, Duke proceeded to make a deal with the Bonsack Machine Company wherebyDuke agreed to produce all cigarettes with his two rented Bonsack machines and in return, Bonsack reduced the royalties charged to Duke from $0.30 per thousand to $0.20 per thousand. Duke also hired one of the mechanics of Bonsack, resulting in fewer breakdowns of his machines than his competitors. Afterwards, Duke spent $800,000 on advertising and lowered his prices so that by 1890 he joined with the American Tobacco Company.
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