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American Tobacco

Publicity Articles, Appearing in Periodicals From 1929 - 1947

Date: 1929
Length: 661 pages
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COMPETITIOA GEORGE WASHINGTON HILl. -t #. Rl,~Ol 03G0165
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Iq T ;'40 l 0350166
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THE ~ERIC.a~I MERCURY - SEPTE~LBER 19/+3 THE TRUTH ABOUT TOBACCO Br ROBERT H. SMOKIXC causes high blood pres- sure .... The ~best way to quiet )'our nerves is to smoke a cigarette .... Ifa nursing mother smokes too much, her baby will be restless and irritable .... Myths and legends like these dis- solve in the cold light of medical research. On the average, the smoker's blood pressure is no higher than the nonsmoker's. There is no scientific proof that smoking quiets the nerves. Babies of moth- ers who smoke are as healthy and happy as other babies. The use of tobacco doubled dur- ing the last war and it has been steadily increasing ever since. This nation is now consuming nearly 200 billion cigarettes yearly -- two pack- ages a week for every man and woman. If the present war accel- erates the trend, is there reason to be alarmed? This question can now be answered by a critical study of e tile latest scientific investigations. Years ago there was a general FELDT, M.D. impression among doctors that smoking caused low blood pressure. Dr. Wingate M. Johnson, a noted internist of Winston-Salem, North Carolina, and himself a nonsmoker, set out to see if there was any' basis for this opinion. He selected a group of ~5o habitual smokers and compared their blood pressure with that of 15o nonsmokers of corresponding age, sex and body build. If smoking had an effect on blood pressure, it should show up in a series of this size. He reported in the ]o,rnal of the American Medi- cal dssodation in I929 that the average blood pressure of tobacco users was I28 systolic and 79 dias- tolic, of abstainers I3o/79. For practical purposes, the two aver- ages are identical. A much more elaborate study has provided ample confirmation of Johnson's findings. Drs. James J. Short, Harry J. Johnson and Harold A. Ley of the Life Exten- sion Examiners in New York in- ROBERT H. FELDT is Assistant Medical Director of the Northwestern Mutual Life Insurance Company, dsmciate Preceptor to the University of Wisconsin Medical School and a member of the Cardiac Clinic of the Milwaukee Children's Hospital. 272 f3 3" :,',¢0 "1 0 3 _'5 0 t 6 P
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] THE TRUTH ABOUT TOBACCO vestlgated the smoking habits of nearly i8oo comparatively heahhy insurance policyholders who re- ported for annual physical exami- nation. Writing in the Journal of Laboratory and Clinical Medicine in I939, they stated that the average blood pressure of I292 habitual smokers was I21/78 as compared with 121/76 for 496 nonusers. Dr. Arthur M. Fishberg of Mount Sinai Hospital in New York has devoted a lifetime to the study of high blood pressure and his book on hypertension is a medical classic. In his opinion, the use of tobacco is not a factor in the causation of ab- normal blood pressure. The belief some doctors have held that smoking brings on hyper- tension is based on the observation that smoking may cause a tempo- rary rise in blood pressure. For most people, this effect is slight and disappears in fifteen to forty-five minutes. Blood pressure rises in response to many stimuli -- excite- ment, a disturbing noise, an un- pleasant thought. Drs. E. A. Hines and Grace Roth of the Mayo Clinic found that the rise in blood pres- sure following the smoking of a cigarette was of the same order as that produced by these other stim- uli. A few persons whose blood pressure rises excessively due to minor irritations showed an inordi- 273 nate rise after smoking, but even this extreme response is transitory. It is theoretically possible, of course, for continuous smoking to produce enough elevation of the blood pressure to cause hyperten- sion, but practically this has not been demonstrated. Dr. Fishberg has observed that the majority of heavv smokers have normal blood pressure even after years of over- indulgence. It is wise for people who have high blood pressure to smoke only in moderation or not at all. Their blood pressure is already so high it should be kept from going higher if possible. Smoking should be reduced to a minimum for the same reason that anger and other emotional strains must be avoided. I1 Smoking does not quiet the nerves no matter what the advertise- ments may say. Only 3.8 per cent of the nonsmokers studied by Drs. Short, Johnson and Ley admitted that they were nervous, while 6.7 per cent of the smokers had this complaint. This does not mean that smoking causes nervousness. Their report suggests that nervous people try to find an outlet through smoking. Does moderate smoking ad- fq Y '1 03 50 "! 68
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274 verse]y affect childbearing? Ninety- nine of too leading obstetricians recently answered this question in the negative. The Joz~rnal of the Michigan Medical Society quotes a prominent specialist, Dr. Potter of Buffalo, who answered "'no" to this question and then added, "Being a nonsmoker myself I have looked for bad effects both as to milk sup- ply and poorly developed children, but after a long period of observa- tion I failed to find any injurious results." According to Dr. M. J. Chiasson, pipe smoking was a uni- versal custom among early French settlers on Cape Breton Island. The excessive use of tobacco by both men and women did not im- pair fertility and large families were the rule. Some women had as many as seventeen children and families of twelve to fifteen were common. Moreover, a nursing bot- tle was unheard of among these hardy French settlers. Does the milk from a mother who smokes harm the nursling? Drs. H. Harris Pedman and Arthur N. Dannenberg, Philadelphia pedi- atricians, puzzled over this ques- tion for years. They wondered if the isolated reports of unfavorable reactions really applied to the av- erage woman. Their conclusions reached after three years of ex- haustiCe study were reported at THE AMERICAN MERCURY the last meeting of the American Medical Association. Dozens of nursing mothers gladly volunteered for the experiment. They contin- ued their usual smoking habits and each day specimens of milk were analyzed. The exact quantity of nicotine in the milk was determined by a tedious new test. On the av- erage, milk from occasional smok- ers contained i.4 parts of nicotine in Io,ooo,ooo. There were 4.7 parts per Io,ooo,ooo in milk from heavy smokers. Drs. Perlman and Dannenberg discovered that the mothers who smoked were just as successful in nursing their babies as were the nonsmokers. Even for the heavv smokers, the quantity of nicotine that entered the milk was infini- tesimal and had absolutely no effect on the int:ants. The babies were cheerful and gained normally in weight. Disturbances of digestion and irritability were no more fre- quent in these children than in babies whose mothers did not smoke. Do you remember your first fur- tive puffs on'grandpa's pipe? The c, hances are you were so dizzy and sick you wished you would die. The effects of smoking are largely due to the nicotine contained in the smoke. The reactions are greater if the smoke is inhaled; but 8"t'HO'I 0350169
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THE TRUTH ABOUT TOBACCO even if no conscious inhalation oc- curs, enough nicotine is absorbed to produce some impression. In most cases, the unpleasant effects of nicotine absorption disappear if the novice continues to smoke, be- cause his body gradually develops a tolerance for nicotine. A confirmed smoker may become dizzy with his first morning smoke. As the day goes on, there is a return of his tolerance- partly lost during the night. A few people are sensitive to tobacco smoke possibly because their tolerance never fully devel- ops. A cigar or cigarette makes their blood pressure and pulse shoot sky high. Diarrhea and vom- iting sometimes occur. Palpitation due to rapid or irregular heart action may be a distressing symp- tom. These are warning signals and the person who repeatedly shows signs of tobacco sensitivity, should discontinue its use. Tars and other substances in to- bacco smoke are irritating to the nose and throat. Cigarette manu- facturers are waging a minor battle as to which brand is the least harm- ful. All types of cigars, cigarettes or pipe tobaccos bring about some throat irritation. Most doctors agree that such symptoms as coughs and nasal irritation are more com- mon among smokers than they are among nonsmokers. The morning 275 cough of heavy smokers is well known. There is no evidence that these complaints result in serious harm. The belief that the irritating tars of tobacco smoke cause cancer is based on two types of clinical ob- servation. Cancer develops in lab- oratory animals if coal tar is ap- plied continuously to their skins. Prolonged studies with tobacco tar have been undertaken at the Uni- versity of Kansas, the Cancer Me- morial Hospital in New York, the University of Chicago and Birm- ingham University in England. Re- ports from these institutions show that tobacco tar does not contain the same cancer-producing sub- stance found in coal tar. Moreover, even with heavy smoking, the tar is not applied continuously to the body tissues. Tile other observation about smoking and cancer is more perti- nent. Occasionally a cancer of the lip appears at the exact spot where a pipe or cigar was habitually held. The constant pressure of a pipe or cigar carried in one position could conceivably cause enough irritation to result in the formation of a can- cerous growth in a susceptible per- son. On a statistical basis, the re- lationship between smoking and cancer is less definite. In I94i Drs. John H. Lamb and William E. Y,RO'I 03501 70
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276 Eastland of the University of Ok- lahoma summarized their experi- ence in the Journal of the American Medical Association. Their study of 3r8 persons with cancer of the lip showed that three-fifths of them were nonsmokers. There is no clear evidence that smoking causes heart trouble. Smok- ing is such a common practice-- 60-8o per cent of adults indulge -- that it is easy to make false conclu- sions. A man who smoked fifteen cigars a day for twenty years sud- denly developed terrifying attacks of heart pain on exertion -- angina pectoris. We might be tempted to say that excessive smoking was re- sponsible for his heart disease, but we do not know what would have happened to the man if he had been a nonsmoker. Many victims of angina have never smoked in their lives. Dr. Paul D. White of Boston and Dr. Frederick N. Willius of the Mayo Clinic are among the coun- try's best-known heart specialists. Both have 10ng been disturbed be- cause they didn't know the exact r61e tobacco played in the causa- tion of heart disease. Some years ago Dr. White analyzed ~5oo rec- ords. Exactly half of these people had angina pectoris. The other half were healthy persons of the same age and sex. Fifty-four per cent of THE AMERICAN MERCURY the heart patients and 63 per cent of the normal people were smokers. A few years later Dr. Willius con- ducted a similar analysis involving 2ooo persons. He found that 7° per cent of the patients with this type of heart disease and 66 per cent of normal peopie were smokers. Both reports appeared in the Journal of the American Medical dsso'ciation and both doctors are sincere and honest investigators. Take your choice. The fact that one study showed a slight difference in one direction, and the other a slight difference in the opposite direction, warrants the conclusion that the use of tobacco is an unimportant factor in the causation of heart disease[ Although smoking is not the underlying cause of angina peetoris, there have been a number of cases in which it is the precipitating cause of an attack. In this disease, the heart is already seriously im- paired. Any factor such as exercise or emotion which increases the work of the heart can result in an attack of pain. Smoking causes a temporary increase in the work of the heart by raising the blood pressure and quickening the heart rate. Therefore patients with an- gina pectotis should avoid tobacco just as they should avoid overwork or anger. z RT:.q01 O350171
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THE TRUTH ABOUT TOBACCO Smoking has been blamed as the cause of hardening of the arteries, so frequently associated with angina and high blood pressure. At the 194 I meeting of the .Mnerican Heart Association, Drs. Michael Lake, Gerald H. Pratt and Irving S. Wright of Columbia University re- ported that hardening of the ar- teries is no more common among smokers than it is among those who have never used tobacco. Their investigation was conducted among nearly 6oo employes of a large department store. ELaborate tests were used to detect the presence of even a slight degree of hardening of the arteries. III There is no unanimity of opinion among doctors as to the relation- ship between smoking and ulcer of the stomach or duodenum. Un- fortunately, there have been no large scale statistical studies like those reported for blood pressure or angina. The Journal of the Amer- ican Medical Assodation reminds us that "in many of the most diffi- cult ulcer cases tobacco has never been used." Occasionally, smoking aggravates ulcer symptoms. When that happens, the person with an ulcer should heed the warning and quit smoking at once. 277 Once an ulcer has developed, an increase in the normal stomach acid irritates the ulcer, producing ab- dominal distress. Many factors con- tribute to this increase in acid, but smoking is not a major cause. This has been proved by Dr. A. C. Ivy, professor of Physiology at North- western University. He gave test meals to a number ofheahhy medi- cal students and another group of patients with ulcers. After the meal, the subjects smoked four cigarettes in two hours. Only 5 per cent of the ulcer patients and 2 per cent of the medical students showed an increase in their stomach acid. At a recent meeting of the American Medical Association, Dr. Ivy re- marked, "The habitual user of to- bacco experiences a certain pleas- ure, a reposeful euphoria... which favors digestive activities as long as the limit of tolerance is not too closely approached." May- be there's something to the claim that smoking aids digestion. Of all the diseases once said to be due to the use of tobacco, only two remain for which such claims seem to be justified. One of these, amblyopia, dimness of vision, may progress to total blindness. Most of the victims of this rare disease are smokers. Its progress is often stopped and recovery may occur if the patient gives up smoking. Pt 7" 0 "l0350 "17'2
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278 The use of tobacco probably con- tributes to the development of Buerger's disease--another rare malady. About 99 per cent of per- sons afflicted with it are smokers. Even so, all doctors are not con- vinced that the use of tobacco is a cause. The disease is made worse by smoking and it may be greatly re- lieved if smoking is discontinued. The late Dr. Raymond Pearl of Johns Hopkins University discov- ered that the death rate of moderate smokers was slightly higher than that of nonsmokers. The death rate of heavy smokers was higher still. Based on his observations of 68oo men, Dr. Pearl constructed a life table from which he predicted the mortality experience for three hy- pothetical groups of IOO,OOO per- sons, all age thirty. By the time they reached the age of seventy, about 54,ooo of the original group of ioo,ooo nonsmokers and 58,5oo of the moderate smokers would be dead. This represents an increase of 8 per cent in the death rate of mod- erate smokers as compared with nonsmokers. At age seventy, nearly 7o,ooo of the Ioo,ooo heavy smok- ers would be dead, showing an in- crease in death rate over nonsmok- ers of 3o per cent. Other factors may have contributed to the high mortality of heavy smokers. Tem- perament, emotional drive, busi- THE AMERICAN MERCURY hess worries and a host of similar strains cause some people to be- come heavy smokers. These same factors often promote the develop- ment of serious diseases in this group of individuals, whose death rate would be high. Most insurance companies no longer inquire into the smoking habits of an applicant for life insur- ance. If they regarded the use of tobacco per se as an important fac- tor in high death rates, they would not abandon this question. If you are in good health, and use tobacco moderately you needn't worry much about your smoking. If you have high blood pressure, angina pectoris, or ulcer, let your doctor decide the question, tf smokingcauses palpitation or makes you nauseated, you ought to quit. tf you have a distressing morning cough, a few days without smoking may cure it. If you are still con- cerned, see your doctor. He can estimate your sensitiveness to nico- tine by testing the effect of smoking on your pulse and blood pressure. It is easy for reformers to dismiss the tobacco problem by saying, "Smoking never did anyone any good," but the satisfaction that millions of confirmed smokers de- rive from a cigarette, pipe or cigar must not be overlooked. 8F;.~01 03501 73
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ij The American TobaCco Co. .;.;,.:U,o ":2' i,.'-'~o .3U~: ........ ... which is more than two-thirds Lucky Strike: a story of advertising, which is nine- tenths George Washington Hill. How the biggest of the Big Three has handled its end of a spirited but bloodless roughhouse and from it is paying stockholders some $~7,ooo,ooo. A SINCE George Washington Hill suc- ceeded his father as President of the American Tobacco Co. in 19t5, he has spent more money advertising a single product than any man in business history. In his record year to date--193t-he spent some $2o,ooo,ooo in advertising. All told he has laid out over $1oo,ooo,ooo making famous the Lucky Strike cigarette. His rivals Liggett g: Myers (Chesterfield) and R. J. Reynolds (Camel) have not been pikers during Mr. Hill's decade. Chester- fields have paid some $9o,ooo,ooo in adver- tising bills duriog that period, and Camels perhaps $7o,ooo,ooo. But Mr. Hill has not only outspent but has outsold and outearned these formidable foe*. Not in every year, of course. In the three years 1933 to tO35 both Chesterfields and Camels outspent Luckies, and Camels, which Adman ~.V'illiam Esty quirted into the lead last year, are still lead- ing Luckies in current sales. George ~Nash- log*on Hill. however, is once more America's No. I s[~ender. A few months ago he was shoveling $350.0oo a week into radio advertising alone: and even on its present curtailed schedule, his sweepstakes program • 'Your Hit Parade" (you pick the three most popular songs of the week and win fifty cigarettes) is standing him around $17o,ooo a week for time, talent, mailing costs, and the revenue stamps on his prizes. He watches the money roll out with glee• Not merely because he knows that the more it costs him the more potential customers his contest is exciting but because the signs all tell him he has created another adver- tising chef-d'oeuvre. People are talkin.g, sales are responding, there's excitement nl the air at tst Fifth Avenue. For that feeling George Hill will pay almost any number of millions. Mr. Hill loves to spend money, but that is not the reason he spends it. At least, if it were, he could not get away with it long. He has stockholders like any other Presi- dent, and they are not so humble but that a group of them sued the company after he had received an $84~,ooo cash bonus in ~93o, plus $ Looo,ooo worth of stock, which suit resulted in his giving back the stock and in the"modernization"of the officers' profit- sharing plan. But generally speaking, the stockholders applaud Mr. Hill's prodigality on the very good grounds that it seems to boost the company's net. x, Vbelt he outspent the world in t93t he also hung up an all- time earnings record of $46,ooo,ooo, more than any U.S. tobacco company has ever earned before or since. And now that he is off on his most conspicuous spree since that year, his admirers, stockholders, and rivals all look, not unreasonably, for an- other earnings ~'nsation-not for 193fi, but 1937. With bond inte~'est of $685.ooo and " ~eferrod-stock requirements of $3,160,o00. r. Hill has to earn some $27,ooo,ooo if he wants to pay the 45,ooo holders of his 4 7°o oon shares of common stock their re~_- ' • . ..... ~7 ular $5 dlvtdend wtthout dipping into hts $65,000,000 surplus. He has had to dip for three years now, but he probably won't for t936. And if Lucky Strike continues to gain at its current rate, Mr. Hill (who shares with his Vice Presidents a percentage, gradu- ated downward from lo, of all profits over $15,5oo,ooo) may well inspire another re. formist flurry when his bonus for 1937 is announced. Even when his Lucky Strike is not at the top of the Big Three Ferris wheel, Mr. Hill is running a big business and a merry one. The American Tobacco Co.'s total asset~ are some $26o.ooo,ooo. Its warehouses, scat- tered throughout the Southeast, are holding in a three-year sleep some St~o.ooo,ooo worth of tobacco leaves. James E. Lip*comb Jr., American Tobacco's $1oo,ooo-a-year head leaf man, has buyers in virtually every tobacco auction; it takes some 5,0o0 men to get his purchases of bright and burtey and Maryland and Turkish from the farmer to the warehouse every year. American's sales department, whose 8oo men and women are for the most part mere oilers of an automatic jobber~lealerd stribut ngsvstem and seldom ,l,i n /~--I ~ !'~" ~ --- :,g_7"= ~.. ~.-~. ,.. "-.~----- : t "'/ .---- "'-"--,_i, - I I \4/. o~ ....... ,.o,.~ ,,,,...~....., "e~-~t'eld .... ,ho~,i,g that'~ctthcr C.amet,~ Lucky Strike,. nor Chesterfields have a monop :.,/ ~ -- -L__ oly on tint place in cigarette sales. Th ...... lolIow the freq ..... hiS't* irt the " --I0 of t/z ~" ~ ~ in turn based on ml~ by key retail outleu), No guess can be thoroughly checked I rt -- in an induxtry who~e policy is to conceal a~ many figures as possible. Like all : " --l~la "~'tat~xz1"..--.,.,gu,.,.ot,,;.~ ...... ,..,i.,sto,,.*e,~,.,~ ........ ,..o It --tit# ,It, ~0' J, 1_ lit. ,E~h 1-~ L= * --poi .... ~his chart is subj ..... postibl ..... f a billi ......... But ',1 ~?t~,.,,..d ~ best available ~ture of the tm~ of publle rt~ome to B~g Three adverti~n~. .a~'~*a~toar tgaa I ,o29 I toso t to3t I ~s2 I to++ I a+++ I ~o3~ t to3o f • 97 • LY: 5¸ 'ii 7 ~l',',~01 0350"/7,¢
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I !ii!ii!iii~iz }/ ALL-AROUND VICE PRESIDENT PAUL M. HAHN { I 1 entered Mr. Hill's orbit a~ a partner in the Manhattan law fi/m of Chadbourne. Stanchfield & Levy. So u~ful was he to his client, etpcy.ially in matters between American Tobacoo and the Federal Trade CommaJlslon, that Mr. Hill got him on his own generous payroll in 1931. reach consumers at all, nevertheless costs a Mr. Neiley's toasting of the Lucky Strike good $3,ooo,ooo a year. American's English subsidiary, J. Wix 8: Sons, is probably the strongest of the competitors of the huge Im- perial Tobacco trust. In American's factories labor some t t,ooo people, the largest opera- dons being at tile Lucky Strike plants in Richmond, Durham, and Reidsville. Ameri- can owns enough rice paper to make 4o.- o0o.o0o,o0o cigarettes, a year's supply, and iu fact. alone among tobacco companies, it o~ns the factory dmt supplies its paper, the De Mauduit mill in Brittany. The American Tobacco Co. makes and sells e~ery nicotinic product except snuff. There are nearly :30o items in the line, rangitlg from Boot Jack and Gold Rope and Old Honesty plugs to Rot Tan antt Chancellor cigars to Eg2.-pti;m Prettiest and Royal Nestor and S~oboda cigarettes. ['he formulas and processes by which all these brands differ from each othcr .are in the safekeeping ot Charles F. Neiley, Vice Presi- dent of .Manufacturing, one of Mr Hill's three over-$too,ooo-a- year men. On the accuracy of his colnrols depends the continued prolit from such items as Nigger Hair. a smoking tobacco that will have sold some 425,ooo l>ouv, d~ in the Mih~aukee district this )'ear with no promotion at all, simpl~' because people there seem to like it. But Mr. Neiley's principal care is the famous " toasting process. It was his proven mastery of that which reconciled Mr. H'ill to the recent death of his predecessor, Charles A, Penn. originator of toasting. comisu mostly in using higher tempera- tures in the heating to which all cigarette tobacco is subjected than other manufac- turers do. American Tobacco's research chemists have collected evidence that the higher the temperatures, the less nicotine, ammonia, and various acids left in the to- bacco. But most of the research has post- dated the toasting process, which began in 19t6 and has not been materially changed since then except [or an ultraviolet-ray treatment. (Mr. Hill. himself a sun-lamp faddist, added that in t93o.) Mr. Neiley has process secrets and so have his rivals. But the one indubitable superiority in ,X,|r. Neiley's secrets is that they have been Da, d/~ L~ ADMAN ALBERT D. LASKER OF LORD ~ THOMAS SALES VICE PRESIDENT VINCENT RIGGIO • . . uteri to be a tobacco taltnrrnan him~lf and now giver orders to ~otae boo o[ them, including hit ton Frank, general ra~e* manager. Though he *elk an|y domeidc brands, Mr. Rig~io is never without an imported Antonio y Cleopatra cigar, and hal a pair ot lrlzh stttert to framed. lumped into a telling phrase. And this of American Tobacco is a story 04[ rather than factories or processes or farmers or even salesmen. On those aspects of the tobacco industry, FORIONE'S stories Of Rey- nolds (Janua~', 193t) and Philip Morri~ (March, ~936) may be consulted. Not toast- ing but "It's toasted" is the key to American Tobacco. THE Lucky Strike cigarette accounts for some 75 per cent of American TobaccGs sales and some 65 per cent of its net. tt h also by far the most leverable item in it5 line. Mr. ||ill could advertise the hell out o[ his Blue Boar or Half g: Halt smoking tobaccos: there is a good deal more margin for advertising expense in either" than there is in a package of L'~.k- ie~; but the pipe smoker's market has been contracting steadilyshxee t925, and Mr. Hill ncver bttck.s a trend. Or he could lav siege to the cigar market-which in [act he dote did, with Cremo of nn- hallowed memory, and learned a thorough lesson. For that market is not only declining but zt the same time behaving wide the coy idiocy of an aging actrera. But the cigarette market, after a brief shrinking spell, has been swell- ing again since early tO~t at the rate of some 9 per cent a year. with no mturation point in view. (The English smoke 3o or 4° per cent more cigarettes per capi- ta than Americans do.) And Mr. Hill naturally concentrates his great spending g,4[~ on this mar- ket. Every now and then one o[ his other cigarettes, like Lord • 98 • "}i rq l""1 03 50 "1 2'5
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1 ~j ! I i ] GEORGE ~VASHINGTON HILL. PRESIDENT OF THE AMERICAN TOBACCO CO. • g6 • ~Y;,~OI 0350~/76
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!, Salisbury a few years back and Herbert Tareyton currently, will show a spontane- ous spurt and win a little advertising as a reward. And this very month Mr. Hill's subsidiary, tile American Cigarette ~: Cigar Co. is launching a new cigarette, the fifteen cent Pall Mall. of which more later• But year in and year out. Mr. Hill both makes and spends his money on l.uckies. People are told about Luckies because they smoke thenL And vice versa. yOU can hear any kind of story you want to ix* the tobacco business. The sales. costs, formulas, advertising appropriations. and manufacturing processes of the Big Three are such carefully guarded secrets tha~ the tabulation of sales estimates alone has become a profession in itself, while the guesses and gossip on the other secrets are frequently fantastic. You can hear that the Big Three are collusive, with their perfect record of unanimity on price as evidence. You can also hear that they will stoop to any weapon to hurt each other's business, with whispering campaigns about a leper in so- and-so's factory, etc., as evidence. You can bear that the toasting process is exactly the same process as Camel's and Chesterfield's; or you can hear that l.nckies have to be toasted because the tobacco in laJckies is inferior. You can hear that all the Big Three require rebates from their advertising agen- cies; or you can hear that Mr. Hill pays his agency, Lord g: Thomas, the full ]5 per cent with the stipulation that one-third of it go directly into the pocket of Lord g" Thomas's brilliant President. Albert D. Lasker, so that Mr. I.asker will bc Mr, Ilill's nlan. None of these stories is true. But they flourish for a reason that is significant. Not only the policy of reticence of file tobacco companies them- selves, but the peculiarly intangible quality of their principal asset makes the tobacco HOW TO CREATE "CONSTRUCTIVE CONTROVERSY" • . . is illustrated by the ~lectio s from George H "t advertising histo~' on tht'*e Iour pages. While Luck~ Strikes were being'soId al a cough and fat preventive (below} another ol ?umeriean'~ producti, RoE Tan organ, was trTmg to win cigarette xmoken ~-ith headlines like "ROE Tan cigars break the nervous habit." While Cremo was calling it.ll "cru*h.proof . . . foil-wrapped" (right), ill stable mate Chancellor was cry. ing "Beware of the Wolf in Sheep's Clothing• Buy Only What You See . . . No Foil-No Camouflage." .*,at Is" Smoko CERTIFIED CD|MOI ~.• - The Old Sock is out of Date! • ~i AN ANCIENT PREJUDICE. HAS BEEN:REMOVED "It's toasted" • 99 • :i i iiiiiiiiiii:ill• •: .... ii!i!!ii!iiiiiiii!!iiii!iii~ iii;~ T ,R O "1 0 350 "17' 7'
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ncnans i trade a darkling plain, swept by confused alam=. If many tobaccomen give an impression of concealing something even when they are not, it is because their extraordinary." prosperity is based on a I~orce whose laws they must like alchemists pre, tend to know all about without entirely trusting: namely advertising. There is nothing patentable about a cigarette. '*Anybody can analyze a Camel and manufacture it," said George J, "*Vhelan i'n t923, "but the users would say it was not the satrte÷ Such is the po,.,,rer of advertising." This is sotnethmg ot* an overstatement, but tltere ('an be little doubt that if Reynolds, l.iggett h Myers, or American had to give up either their secret formulas or their brand names, they would keep the brand names. "If l wine asked what is the most valuable asset upon the balance sheet of the American TobatLco Co. and the me, st conservatively valued." said (,eolgc Hilt five years ago. "! would unhesitatingly point to the item of good will." He car- ries it at $54,ooo,ooo, Yet Reynolds and Liggett g: .Myers. who have done stone advertising too. carry theirs at St. Even Mr. }{ill will admit that neither the cigarette itself u,w its g~:l will ct~nld be depended on to win so huge a market unassisted, as thottgh it were a mousetrap or a Hershey bar. Nor keep it. once won. When Reyn,lds put $4.000.oo0 of it~ ~93~ adverti*- ing appropriation in the bauk instead of in the newspapers. "BOY, WHAT A BELLY-WHOPPER HE'S GOING TO TAKE" • , gleefully exclaimed George Hill when he first saw the art ,~ork for the advertisement at the lelt It al~o pleased him to know he wal keeptlt~ literal faith with the Federal Trade Commission without dropping" hi~ most effectixe copy theme. The ~o,679 docton who answered a mail ques- tionnaire the right way received lot their trouble free cigarette~ and an angry editorial in the Journal of the American Medical A-~.,ociation, "1 1,,{0 1 03 50 1 ,'78
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the sales of Camels dropped sorne $50.0o0.00o m a year and Rev- nolds's cigarette dis'ision was operating m the red, Yet the strange deities of this indnstry do not answer to mere forms: money alone is not enough, and even tile most experienced priests can't bring every- one to grace. P. l,orillard Co.'s Old Gold• which has been tryin~ to attain t?,ig Three volume since t926 with ahnost every known adver- tising stratagem except consistency, has never sold more than 8,ooo,ooo,ooo cigarettes a year and is now selling a mere 6,000,0o0.000. as against 45.ooo,ooo.ooo for Camels and 38.ooo.ooo.ooo, more or less, for Luckies and Chesterfields. There is. in short, a secret to the success of the Big Three. a secret that the Biq Three's men are in tune with rather than in possession of. George Washington Hill is worth S 12o,ooo a veil[ to the Am erican Tobacco Co., plus a share of the prohts, primarily because he is in tune with it most of the time. He has evolved two or three principles to explain the success of his methods, and they will be stated in due courst'. But important as the principles may be. they do not explain (.;eorge Washington Hill, nor his extraordinary instinct for successful tnbnct o selling. As a brand name is worth more than a formula, so Mr. Hill's own personal complex of tastes, bunches, anti peculiarities is probably worth nmre to the sales of Luckies than his principles• ht an account of the rise of tile Lucky Strike cigarette, therefore, you must watch Mr. Hill ~er'r carefully. The two stories can be told as one because Mr. Hill has little life outside d~e Lucky Strike. and the l.uck~ Strike is almost w-holly tile creation of .",[r. Hill. Up from monopoly ]" AMES BUCtIANAN DUKE invented the American Tobacco Co. ..J and made it, until t9tt, a trust, ftis methods differed from Rockefeller's mostly in that he did not depend on controlling raw materials so much as on machine patents and aggressive selling to put his small competitors out of business. He spent $8oo,ooo in advertising cigarettes in the early year of 1889 alone. He also bought up his strong competitors; it was by getting options on Liggett g: Myers stock, which Duke needed, that Anthony Brady, Thomas Fortune Ryan. and P. A. B. Widener or-elsed their way into American Toba~ cn. Duke shared control with them until well after the dissoln- tiotl of the trust in 19It. but he was always its managerial spark plug and he made the most money out of it. When George Hill left Williams in his sophomore year to go to work for the trust in t9o4- his father, Percival. was a Vice President--it was doing at least 7° per cent of the business in esery category, of tobacco except cigars .-ks George was to rediscover, tbe cigar business cannot be regimented; it retains its Jeffersonian pattern of small factories and local markets to this day. But in cigarettes the trust held around 87 per cent of the /OFel,'eF and ever.. "It's toasted" EVEN LOVE IS A CONTROVERSIAL THEME . . when George Hill takes it up. Not in the advertisement above: ~.-hen he ~uddenly went soft with pictures like this in t955, people who '~'orry about advertising ethi~ sighed relief and Luckie* began to lose so Camels and Chesterfields But the t95~ poster below (soon followed by another in which the bull *tepped out from behind the fence) was removed from the suburbs of San Jose because the church women deemed it an affront to Calf fornia womanhood. The 35.ooo billboards on which it stayed, however. helped restore ~dling y~ur own to great if *hort-lived national popularity. HFP, H f31"HO'l 0355.0"IP9
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"CRITICISM SEEMS TO FALL ON DEAF EARS" . . . complained the National Better Businer~ Bureau. Not criticism but a silent switch in public taste induced George Hill to change his tune. "Sheep- dip" f~}il~d to ~aXe people as much as he bad hoped, and in i93~t, when adver- tisements like the one on the right appeared, Luckies were already on a chute from which they have only this ~ear headed up again. market. In ego7 Duke acquired a small company called Butler- But/er, Inc., with an expensive Turkish brand called Pall Mall. Percival Hill, who was in charge of all the trust's cigarette business. decided that George, after three )ears in the factories aud leaf markets of North Caroliu;t. wa~ no~ xeady for selling, and he put him in charge of Pail .Mall. Young George had been vc~v con scienticnls about his leat traini~tg. VIis fellow boardcr~ at the ~Id Manguln House in Durhalll found hiln serions.minded almost to the }~int of being unsociable; they recall that in their penny-tree games (the only study George allowed himself time for be~ides tobacco) he kept strict track of Iris winnings and losses in a little vest-lx~cket notebrmk. But the same singleness of purpose that might be found unbecoming in a genteel southern boardinghou.~ became devastatingly effective in dee selling of Pall Malls. Dusting off tbeir slogan, "'A shilling in London, a quarter here," George Hill sold and advertised them into the leading place among all expensive Turkish brands, the weakest branch of the trust's ciga- rette business. Thus when the Supreme Court ordered Mr. Duke to di~sol~e his trust in t9*t, and Mr. Duke resigned from the presidency of the Anterican Tobacco Ca,., he appointed George Hill to the vice presidency in the reformed parent corporation at the same time hemade Percival Hill its President. Since the court laid down the principles but necessarily left the details of the dissolution pretty much up to Duke, he was able to effect two things to his advantage. First, the shares of the trust's subsidiaries were distributed pro rata among the stockholders of the American Tobacco Co. itself. Thus Duke, Brady, Ryan, and their friends retained working control not only of American To- bacco but of its former allies attd new competitors, Lorillard ttrtd Liggett g: Myers. (Reynolds, which had been only two-thirds owned by and never properly absorbed by the trust, called its freed shares back to Winston-Salem and has since trained them up to forget that they ever left home.) Second, each of the fourteen compatxies into which the trust was carved remained a good deal larger than all the independents in its particular field put together. This ad- vantage of large-scale prodttction, so vital to the power of the trust, was kept especially in the cigarette field. Ninety per cent of the trust's cigarettes had been manufactured in three factories; and these three factories emerged intact as those of American. Lorillard. and Liggett 8¢ Myers respectively. To celebrate the anniversary of the dissolution Percival Hill made a long and candid public statentent in which he accurately prophesied that the new competition in the tobacco business would never ceuter on price. He reasoned that the average smoker would always stick to a price range rather than to a brand, and that price cutting therehn'e destroyed the prestige of a brand withont incr~s- ing its market_ The silk flags, buttons, coupons, and pictures o~ Home Run Baker or Valeska Suratt with which every package of cigarettes was then encuntbered were price cutting enough, said he- The reason for the eusuitlg price rigidity was perhaps a little more complicated than that, but it is certain that the contpctition at ot~ [Continued on page Z5~~ Do you inhale? "VVe're not asking you -we're telling you!" ; ~t ¢~ I~ ,m~ irlhalt kno~m~lv ...... " ......It's toasted • 102 • R'i-~OI 03~[.')1£t')
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took Ill'.~ tornt it has letained evct sinte. Each of the cigarette n~attufacturers begau to build up a ~ingle brand in each price class. Liggett & Myms's Fatinta, at fitteen cents, s(xut brottght forth Anlerlcan's Omar and I.orillard's Zubelda. Carolina Ihight, Piedmont, Sweet Cal~ral covered the Vir- ginia held. Then. in t9t3. R. J. Reyoohls, which had inherited no cigarette from the trust, entered the t)usilless from scratch with the Canlel. THE Camel, so called because, among other reasons the late R. J. Reynolds liked aoimal names, was the first blended cigarette,* and was an immediate success. By the end of the War it was outselling even Fatima, and Liggett g: Myers had shifted its weight behind its newly blended Chester- fieht. Yoong GeorRe Hill had itched to enter lhe hlended battle at ouce. In spite .f the kiudlv discouragentent of James B. I)uke, who titought AmericanTobacco had enough good brands already, George won over his father-and ill 19t7 the l.ucky Snike was launched. The nanle eante from a smoking tobacco .\meriean had acquired in 1906, as did the colors of the package. George ttx~k eotire charge o[ its sales from the first. He redesi~led the package, removing its arabesques. He spent many an hour in tile factor',' in lhooklyn where Charles A. Penn was supervising the mixing tables, ovens, and tl:t~or sprays. George was deliberately hunting an attrihute to ad,.ertise, lie was intlnensed tlv tile high temt~elature around tile drier, especially where the burtey was heated: and one day, in his father's office, after "'It's stewed" aud "It's co,~ked" had been qukklv discalded, the slogan "It's toa.ted'" was born. \\rith a burning sense that lie ]lad ,4~lllethill~,. (;el)r~c" at iii1~c re- leased hillh, mrds and newspaper ads dtmv- ill~ a piece of t~mst on a fork. ~,'illCellt Riggio, who had run a successful harber- shup until lie j,~hled the sales force of Budcr-Butter. was put in ehar.ze of selling the tle~v briltld Ill Ihe nade, Thhtecn uli] lion lmkies ~clt' sold the tilst ItlOltth. The introduction of I.uckies quickened the "~oun~ li,.ah-v of the Big Three into a llel~ allilltl}~i{%. Not only was+ the advettisittg ptttt~ "'C-ml~efirixe" (Y.u 1,\'llt;Mll"t f'~:tt Rgt~ Meat. XVh,, Smoke Raw l'obacc~}. etc4 lint 1Ullll~ln I}cg}lll tt~ llv so fast that Rcyn,llds appealed t.~ Ilae public in self-defense. '"rite Stetlth ot a Contcmptihle Slander is Re- puldve E~ell to die Nostrils u[ a Buzzard," eluded the headline of their ad~eltising riposte. They charged that men oil street- cals in P, uttalo, l.uckies' lirst city, were pre- tending to read newspaper items alond to each other ill which Camels were dispar- aged; or preten(lillg to lie doctors ill lo(ld coll'¢er~atil/n lllOlllniIl~ tile ptll)lli's i~llof • ,t hl~mh.,l ,ig,.,.m. diffcls ~¢~m lhe *¢t:r/*'r t)'pe~ by ,,,,,eae,ta*aK irtt?~%, ¢,,Mac,,,. $ot rr¢~-;i} ?t~,,c~ o~tlx? ,,+ ,,,~o&,ng mtxt~tlt'~. 7+he dalk ~+n+l dtaw.bu~ling t,~l,w is m'eetened and not only tumbled with the b~i~kt and Turkish types but-at least in Luck&'*, amt probably in Camels--allowed to sweat its flavor into theirs by a day or ~o of quiet under canvas. This step is known as bulki.g, or, as George Hall sayg it. boolking. Lucky Strike [Cemtim~,',l [,ore page zo2] i ante of conditmns in tile Camel factory. Reyuolds offered rewards for their arrest; and this was not tt~ be that touchy cont- pany's last retreat to defensive vettislng. On the new Big Three competition of whidl sudl events were symptomatic, James B. Dnke (who had becmne even hi.re in- terested in suothern utilities) could smile with the benignity of a father smiliog on the roughhousing of his sons. For the harder they fought, tile stronger they got: and Duke. who drew di~identls from all cigarettes, was less interested ill ~.~llo was Oll top thall ill the fatt that ,+'+}lereas IO,OO0,- OOO,O00 cigarettes '.`+ere: sold ill ,\iuerica whetl the trust was di-~.~A~ ed. 77.oou,ooo,ooo were sold ill 19-°3. It ~ottk| be too uttl(h to hope even of so astute a olhtd that he planned it that wa% but it ~;t~ sol)n plain to him that Uo suth rate o[ glo~ih I`+()(I]d ha~e been ]~)ssibIe under the lazier selling methods of a monopoly. Mr. Duke's feeling that ounnlercial l~Hlghhou:~iuff (as against real war) tuake~, mole inolu'y dlall illOllOpoly has its inheritors texiay, n.t the least ot whon:t is George Washington Hill. But Mr. Dnke did not foresee how completely these fleneli( ellt t uss]es would eetlter around the thiee big bh'nded brands. Pert'i- s'al tlill, who had hrst hceo lured frmn tile cart~.t httsine,,~ by the Bull Durham mix- tnre and could ne'~ er shift his loving interest to atl~}thcl khld of >nmke, likewise failed to see this. So it ~a~ not until George becanle President that the l.tukx Strike really lie- gallic tile spearhead ,ff tile .\mcri(an 1"o l)a(ci I attar k. Geoude l lill had (te~dtq~cd tw. profound (on'victions almut the tohacco business by ]9'-'5: he ha~ tllenl todax. One is that yon (all't sell :tll~l]~]II2 [[ it hasn't a spctial VICE PRESIDENT CHARLES F. NEILEY • ]54• merit that ntakes it both worthy of and different fi(ml its txmlpetitiou. The other is that if your produ('t has that merit you can sell it to anybody ~dto hears et:ottgh about it. Thus he is almost fanatically con- vinced that I.uekies' toasting procees is in- dispensable to their success; but the im. polt;ut~e Of toasting in his mittd may Of conrse be a projection of the delight he takes in selling cigarettes on that basis. Mr. Hill is a salesman without a flaw, He helie~es everything he says and everything he writes, attd he writes a ~×~d many of his OV(ll adsertisettleots. That queer glil'tl- tiler of self-conscitms quacker,~ that stopped the flow of the Re~ctend Gerald L. K. Smith's spiel in New York last snmmer ("l[ow am I doingS") could never deface the solid front of Gearge I!ill's guiIele~ salesnlanship. When he sells 1.ucky Strikes IO diIlller guests ~ho ha~e the bad grace to want a ri,.al brand, it is pule conviction that bnrns away any desire he may have to be obliging. In his Rolls-Royce are gold ftatnex that hold a deck of Luckies before tile eves of passers-by, tie named his dachs- hunds Lucky and Strike. ~Sttike is dead0 His only ch~se fiiettds are pt.ople who have teasoo to share his zeal. notably his Vice Presidents Vincent Riggio, Paul M. Hahn, and Charles F. Neiley. ftis ~ife was once his secretary and she still sa~metinles takes dictation at honte of a Saturday afternoon. tli~ a(heltixinR ntanaRer is his son, George Jr. Mr. llitt also spends nl.st of his own tilnc oil [.uckv ad~eltisin7. Ill his car are a pad and pencil to catch ideas i[ theT" should t:OUle to him therein, lie kibitzes tirelessly at the p~epatanon of copy and ail shm~s by l.o~d ~ "]h~mtas's well.paid exlielts. "Fhele is a radio m exerv rotant of ,liD, III;llP, iOll at lI~. inRtozl, Yc'`+~ 't'~rlk, at~d hi~ altellti~.ettes~, ill his ~ll~t~ t~l+~tatu~ ill. tilt+ he(h,um~ x`+ htq e it COltlex t!~rottgh toud~ est. is a ritual that has hexer been ittter- rttptell. CBerause he likes t~ beat time on tll+.t flltllitl£1C at t]lese ~,c.~sil~ll% his yonDger SOil I'eacixal last tll()llth I~tC'+cnlc-d him with a I;lh~t(+t that lie Ill;~!e ill tl~at~tta]-tl l[tt~llg class ;it St. l':tul's ! Mr. tlill s twelnY.[ottr- houl a d;iv ~;alt'++tll;ltl~]lit) ¢~f tht~ 1 .ucky'Strike has bccn ilnpi~>udx likened by rmeo[hL~ tiOll t() le~ll~'' GI{()R{;E lIII I. had hcc:,. President o[ +\t:lc~i~at~ ,.~l~t-l~ a ~cal t)~fore he ~lallpCd up hi)me ~lf the ci:+ulpany',~ lesser tigarcttt" b,ands and leased them to Whe. lan's ['nimt "l'~lba(cl/ (:,~ 1 !!ev were d[s- traetin,,z hint hom the m:m~ ]<~b. Camels. then ~t'l[in; s,;m~ i-~ pet tcllt ,)[ all An:eri. cart ti~:t]~th+s, ~[t+,w,-(t him how big one IJt;Iztd tt)tl]d '~t'l: t]~C t(~t:l] itl:uket had be~t expatll!ict~ about 11 [)el cent a year: he knew he had a ~c:lt ~mI3 :~>t 'mezit")inthe toastin~ p~o(e~s: :ln.[ ]lc: had a (;ousut~lin~ urge to tell pt'<~ph: ;ltumt it. tt was a qtle~: tion only tlf how he would tell them. And that question ~as xitluallv sctIled when he slg~aed a letter of terms in tW25 with Albert Davis [.asker. President of l.ord ~ Th0m~. [Conti,t,,ed o. page ~tS~ JqTNO'I 0350181
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Albeit iaskm h(is spoilt m())c :id~ertising Illcqles ill tile p;l+,t t~lI yeats lhall (.>',ell ~|r. flill--'o~er thlee times as much; but il. of (ourse. is ()tiler people+s llIOlli2v aIld in- tludt.s 5.1r. Ilill's. t{is is one of the three I)it(~cst ot the big agencies and has the ICpll- tatiOll of netting more ell iLs 15 per cent than any elr them. Besides l.uckies, its clients iitchMe S.un()ur, Frigidaire. Montgnmerv Ward. Pepsodent, Quaker Oats. Anaconda Copper. htternational Mercantile Marine. Y~:ltenley, New Y(nk Central. Paramount Pictures, RCA. RK(), Sunk(st oranges. Southein Pat(lie, Cities Service. Kotcx- Kleenex. Associated O~1. Union Oil. Bout- jots. I-{orlick. U,S. (;vpsuln more than twenty others. Mr. I.asker was Chairman of the U,S Shipping Boald under H;udin~ and is still a pm~er in Republic;in politics. But lie has Ilever lit'i'll I)owert dowll by ~.o 111tldl StlC- tess. Ills lingo is not habitually guarded and t pa "takes ilI IS IllallV Americall SOlllCeS as a nlo',ie dire< lll|"~, |tlstea(l of tile ilelt0tls tlr });lll[t'~ t~ lib %~Ili(ll flieS( ;ig('ll(} lllell (Ollceal their h'al ,if hising clients t0 eafh ()tiler, ills ntalicr s,Jteofsltewdandcynicalioviali- iS'. Sollle "~ eaIs ago whell lit" and ;i I)lllllllall- fill of colle;igues were xainly beating their t/eads for a iolall lie could plesellt to a prll- spcctixe (lit:nt. 1 askel s<)lxe(t it iust a, the uain pulled in: "')'hi ;(fin'4 1o tell thein tile Morv of ill\ life." \Vhich :4ot tile ataolltlt, R.li~cd in (;al~eston. ile had ~alh¢lcd test( lll(tlliai*, for Pellllla at S5 i| hca(I, helped to Inaldl Talk Johnson (then janitor el tile h~-:ll t~xm, in llis plotessi.nal debut against [.e ( h-xn.kx, and wlitten and pllblished a tilelalC ]lcl~spaper. betore hc '.~a~ ()lit el Iii~ retellS+ tte ~ent to Chica<zn in I<':98, was slloll 111akilt7 ~j(/.O(lll a Vt'al at [xnd Thomas. and tontiolh'd the a~eli(V If) his thirtieth birthdas" ill i()1o. *it. Lasker was alllOn~ [he eartiest exponellts of '+rear;lilt whx" t+)px and is siili perhaps its ItlOY, t [;lithitit (lilt'. "PeSt Cllllpai]atl~ and ill;like[ ieseatt h. tht> lncthods b~ whit:h lllDie ca(I- lious <l~etltit'~ hart! tried to ili;(kt" a S('i- tire ()t: thcil :lit, are tt's~ illlp(~ltallt it( the Iurd <: G-It(fill;is philosophy than ;ill in ~l~iIt'~i (~)llx theme Mi. t;l~kt'l inclines t() ~lll~l ]li~ "rlt~[1 %;IS[ CXpt'li('ilCl2 t~S loll hiin /~ iit:tiLt<l t!IW 1 t ;i'*(/lt ill :ill ;IrLt t (T{S[ll2 idca is ;tilt ,,r)od: lii~ li%*~l/ n~ind i~ a IC liablt" I<ll)(,) lilli\ ~;;lllllllc 711 [tst't[..\1 his lit{the' ~,[ltll hi' IIICl (;tl+)l~t" lull, MI+ | ki'~kCI till)It,!it tO Ili~ licit ~ liellt IlOt olllv a :~ist, e~!il, ieilt% ill lhe ways i')f artserti~iill~ ,thele :lYe t~elltv ~ood agencies, 3II I askel ~;t~s. that /-uhl tiling Mr. Hill that!, bill it plm.tali~c pc~oiial I~lilliamc th:lt Xh, Itill. !ikc :ll,lll~ all.lhcr la~ker (llenl. ~aillt. x<'~ hi,hi:, ftill, on tile other hand. ~upplwd { i.ker not nnIv witil ahn(ist till liuliiCd hill(l+ alld a tt.i lilt. adxei tisin7 tilind (+t hi+ i)%+11, htlt tl l)<)~ish readilie.,~ tel balk r() the liln[t t,x et~ idcii (ill which he was sold. "l'he resittts (>1 the co]lal=,orati++ll ale historic. IS lg-%i Mr.and Mrs. [.asker were din(neat Chlcago's Tip Top hm..Mrs. [_asker fit a ci%mrette arid the headwaitel asked her iode- si~t. Not tile illCOllXellieilce so milch as the Lucky Strike [C,,,m,,+,ed f,om p..~e ;54] Ic, pocri~y worked ill I nskcr's mind. lit those days cigarette advert(sin,4 was at best gel[- ted. (',ainels di~pla?ed rulficuiut, middle aged men and barbless slogans like "Have a Camel" that (a:ne out ui the Philadel- pliia agency of N. VQ .kxer & S~)n. Cheater- tields, advertised then as lmw bs Newell- Enunett (Mr. [nl::iett ~as oil(' ()t Mr. l.ask- el'S lllally ahlllllli ;. ".~ ere thcitlght just ahllu[ daring eltougll when they ~howed a prett) girl saying "Blm~ S. ,the My\Vay." Ohl (;old, launclled in 1926. ~as at tilst assc~-iated t)~ |elltlell ,~¢ Miullell with lady pirates in la~ed shellS. On this peaceful scene, ill .]anuarv 1977, burst a series of falltllllS Ills(l- and-blood ttlen--a/ld w(stnell --COil I eSSillg their haliituati~ni to the Lmkv Stlike, Now the testimonial idea wa~ as old as talk: it I%i15 e'*ell thgll the II10S~_ characteristic COl)) theme of tile J. %Valter Thompson agellC',. notably ill tile a~.,iorted Morgans and \.'all- derbilts who slept on Sinnnons beds and tilt' ob:+~-ure dyslmptic~ who ate Fleis(hnlann's }CAM. ]~llt there w.'l_~ a I)ohl extla%agilltCe ii1 tht' ttill-[.;lskuI ac1*.t:ti+einents that nlade all ad~eiti~in:~ ~inl.e tile t-arly t.ydia Pink- hani ela {frolil i~hich era, indeed, l_uekies W¢le sholtly to purloin a whole calnpai,.4nl " It>ok rneachin~ and Sill)lie. Theh- ¢2atlll)~ii~tt had, to be sllrt-, .9. subdetv of its own Thv first lady endui ~'l s in( hlded ,3 '~ellerOtlS per lion ol fort'i-m ov, cra ~tai% v, holll tilt' Bil)lt t;elt might di~:ni-< as sl;illt't 2111%~.xa% ()11]', ;lg:lillst this ha( k27t,tlllll l~ele ~ood. tlh()le Xttllle .l, llleri(iiii ai(rt.~..t.~ like Ali<e I~iad'. permitted to slep torward u hil the elinehei, So ~ell timed ~a< the talnpai~n that pnbli~ (it{Alelle MliOkill£ b, W¢3111elI in .~tllleri(a (;IT1 ~e (err(+( llX c;,;ite(i~ ir¢)Tll tilat vear, +\llr~ latl kic% (it ('lqli~t ~ ~,l[ tht' I)u]~t' ()t the ul'~ Ill<it kct, Olic das in tie+ i,,]],min,4 ~eal Mr. ttill was dl-i%in7 })(tilt(+ :Hli[ <ltx. t~ithin ,i tt,%l ]llfu k~,. ci I;il .'hl TGiti:!c']lill+~ S+;lllt'thill~ ;iIlll ;t ,.t I'tte ~il 1 ill ,t l.t\: ]i 2]~:JEl" :l t J,/21rt'I[i.-, [ tL' C :l~IUrt },[I ] .,'..c : "~ hl,~t~ t t)[l~.t%:ll( / , iv;l(ht,(i, ilit+) ,it{'.c::[.iH~ l>ic']t{~t~lt% .lll(l pullcd I)llt +1 I ".f{ii ]'::]~.17,/Ill ",[(+2,:lit ill I>~(11 'Real h l<>r a \+t';t :a}/,c In~tca<I ,d ;i St, vcl ': and l.u(kv ~lr]kt" . :::~>~t f'f)llti'f)t(+l'~i;ii c;lltl paiTlt i~,:1*, t)()lll. -r]e .~t'ets caIllp,t',~li ,tl ~lll(t, alienaled (2\t.]~i>,~[% ill lilt" t;ill<i~ I)usi nuss (the 5(hl;lttt 5: :e~ ~)tllta~ed I u(kic. flOIll t}lCil ((iliIHeT< all(! shllt+tlv t'/lltst'(l ~t'll~ltOl 5)lItl)isl H~,~]] !)t't t-~(ii~ill" {'l;Ih It) li~t< hi ([Oll~Iess altti a~[.i(x ihe ¢,ntile t()]),llltl industrv. That ~n< ill Itllle, 1{!79. An(t Wilt, it the ftiil-lasker br.:,ura, ilOti ill ihe \n ill!Ill l)reiudice ~ta_'e .el i)zl~e !!!In l~,ls if}) iouslv '~,iilt~ ;Ihe;lI! with I;il~t+r tipple)prig- lions (hail t,,,t.i+ tile Fcdelal (lade {;oln- tnissiolt called Mr. Hill to \Vasllillgton alld persuaded him Io stipulate with thenl not to buy any more te~tintonials (Madame S<lllllllalln.tteillk, "~lio~e e11(tl)rseHlellt (-()st Sl,ooo, later i,~ok to denouncing to :,lrco) • 156 • all(t lie( to sell I.ii( kic~ ax a It(it(( ill}~ agt.!tt[. But ll~,' tilt' tinie file stipulatiotl was .~ttt+ noui'*ced ttill had iRJ~Uil the ~ lit(Ire Sii,-l(~s*g Selie~,, ill wilieh the liand~on~cl~: iiOllCiTiIli+ niittal tt,'zt (Be InlllleYalc ill a'll thinb.-- t'~,('il in Slltokiil~i kept u(,il ~ ilhilt the anti- lat stiptliati(lll but did liitle m offset l:he doe(it s'oi(-ed (tighter ess of the heatlliiles and pictures (sec page ICq>L Mean;, hill, iiis continlled emphasis on ibc e\dtl~ixene~ O[ tile toastlu,'~ process had so i~ritated the Rev. nolds people that tile} spent snllle S'~.rNLel¢l~l on one full-page ncx~spaper a,'{veltisement ill March. 193n, de)lying Mr fillies t:laffns. But Mr. Hill was not irritated ill return. For tilat "tear tile steadily litotilltitlg sales el [.uck£' Suikes pus(led C.mwl,. file leader Sill( e tile t)t'gillllin:z, +)ill +~[ h~st [l!;tt e atnDt~lg the P, ig Three cigarettes. B(}TIt Cantels aitd Chesterfields began to lose business in 193o. But Mr. trill de- clared lhat "a good li~llc hdps :dl sides'+ and tOlllilitle([ his rl)tl@lil~}ll~ill,2 PLi{ootts 0l I)tl~,iilessiltl.'l"l praised l.uck} ~ti ikt,'s pie(leer- ing spirit in ]ill~t. advertisenlenls of the n~'~¢ ultraxio[et ray, Sull-kissed bath(lie girls, people l~uintin7 to their M!anfs apples. "'2(1.!J7¢ doctors " ll[I)~. it" sial ", t~ il!)se naIllet were *.atllltillgl~ ntlpaid Io!, all atlcMed the lit, lie.lilt-Ill(, el| hi'at Ili the ll]311tli:tt:ttlri~ ([i]~ t'i~al(!ilt+~. AIIli(ni~h .\ll'lc-! it;illS ~tlll)ked 6,+ ooo,tJ(Joaloll lei~t-i lead)-inadc t i~ait-tte,$ hi i9;~1 thai( they ltad ill i!#V), Mr. tlill i!i- (leased life :/ale,, Ol [.ll( kits ill Jill 12,OOO)- IIt)lld)ltll tO (l~,el t[~,f)f)(),f)(to,4)lit), I ti, a(Ivertis- in'~ bill. hi~ sales, his ])t<~tits (bellied tie h(ilc !l~ dt~ liliili,4 It';il pikes, t~ele all al:an ;ill-(tint iti,~,l~, t/t:( it :~a~ also a ~ear ';l~ di'!,- I,Ill{ (illi]ll~ t()l ,XlI tlill. ()lie .I ibex( dtttIIIh allIll)tLIICt>(i a head- :uhe Tile ~tlllcli(;tll T()i)atxo CO. had re- laincd h-oln the Ilust a sub, idiarv called .\llltq[tAil Ci~al. ~llitll in turn ihroug!l <)till.1 sut)sidialit,~ O~lled iI[()~t 4)I the gOi~d ilill~,)i ted I |:it alia ( iT:ll'~ rul(t ,lt~.) had a few ill)Tilt:n( [~ ~.. I't,)i -lall. CIla111 c]h.1 , CI ellll?, etc, \tl .t d~vm ~,clu ill,(de h\ hand. a that MI. liill ~xill dc.t~it)et,~xou asN)i~ea I iili<,~ ill~( >it in,4 tie ,t o111~ lilt' tl~¢ (l| the mak. tq > ~]lit })it( ill il]3 ,4t,~llllet ;I [iliA! twit(ill!ill tilt. t i2 cl Ctl~[ i!i }ii. cal h tl;l. t1<3I Ltllti[ ;1[[C[' t(12i t]lL(t (i'~;il 31:;lkill~ I]i;lchillel} bega/1 (i)l]l:t/~ inl,* ~( llci,l[ ll~t', \V]ict: lie lJlJti~ht ~lltlie h>l ]i:~ ni<kcl (]lel]B). Mr. llilt de+ cidt'(I I]l.H iht+ (12;11- market, t[iOtlgh du~:lill~ in'_,, nlil4hl ,it Ic,tq t~t: put tJll a one.bralld ha~is I{kt, lilt: .,)-p ~)~p "l+~ ~ ti2rilt:lte illal'- kcl aim hs thc .atnc llit,~h+)(**~ \(c,Jldln,4ty lie lllAtl,2111a[ct] ill5 l]t)[t)iliJtl~ >7~it l.llitpai~.l ill II1<" .~l/ill2 fit i~t7!i i[ t,,,tkcd. (]relllO ~;ll('~ i,lSC lit tll~l ill ;~,N()o,i)ll(i a day, a pohlt t~llit h hall il IR,c.li iil;iilitailte(~.', llli~hl per- liap~ h;ixt, nli[}t)()ll()d the D'_,.(:.oo.oot) a year atl~t+lti~ili~ And .till .hm~n a pie)lit. Btit tile l:iR;ll lJtl~illt'nS X~ hrlsc ]al gest Ill Ills <Gert(rat (:i~:ll. ILlx uk. ( :, +l l., d id,ltt'd ) ha(1 neser ev¢tt btJh)l/~ed I(i the tl list, refused to abide by M1. Hill's hnlmtted lulls. General's White Owl, ~isibl-, loii~t.r than ellille, redtlee~I ill prkc flOlli lilr('c for I£WelltV (ellis tO Si~ [(7.nti..rd <,)l page z58] ~ 1,'~0 I 03_'5.0I82
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vaLs~Nrl~ IST~RtOa D ~ sit; S ~:~t ~Lt:ASOR Lr ~l~ta~:, ~¢~W VOIIK elXV OTIS STREAMLINED ESCALATORS ./IX INTERPRET£B BY ELEANOR LeMAIRE AND STAFF OF ~ YORK CllY iii i ~iiii/¸ Interi~r ,~nlt ,'xt 'riot f>ahisttadlng of The Emporium ~alatnr*. L~ of md-bia,red ~la~ coral tinted in s~ti~e tdat ex. It i~ ilh.ni,L~cd from within, and nlc'k~*l-bronze m,'tal is lLt,'~ f~:* accent. General contractor, B~rrrtt & l-tiI~. ONE ~)F II~E chict ]~'aturt:s of the Otis .~treamfined Escalator is that it lends itself >o admirabiy to use of a wide ",'aricty of modern treatments. And now conies the ~',oman's touch to make capital of thi~ f*':mtre and "~lse illumlnatcd glass to advantage in achieving a l~ghlv dramatic effect in Escalator design for a department store. T!~: ~oman is Eleanor Le Maire, of New York City-- [ntt-ric,r Designer with a great deal ~)f success back of her, both in st~)r : interiur design and in h(;'Ille Lit'corat~" 1, "The stl)rc is Tile l~:Itt)~)tiuin ot S:ln Francisco. In contr:tcti~lg l;)r tip and dowu [~sca]:l!(~rs fro~rt ba>emcnt to fi)Hrtfi floor. The Emt)oritm~ put OTIS ELEVATOR COMPANY [+:to .'kIi:s [+e Maire's h:mds, among ~+ther thin~.;, the tr<+atm<,nc of :!-.e balustrading. U~ing gLtss as h('r malitl ml'dillm, she created an Escalator finish in harnl()ll}" with a woman's world (the depart- men: s;ore ,. The resuit is det:id~.dly ~.ffccdve. Y¢,r an~." !~,pe-of building, this new Escalat,)r lcnds i~se]f r~3 ir,.di,,i~!u.~l tr:.zttmcnt in harmony." ~it}l its ~t~r~tn(!ing~. It otters the id,-.ll .~4JltltiOll tO a variety of transl)ortalit)rl l)r~ti)]t.ms. ()n ([',is p*~i:~t ~e must quote Miss I.,- Nlaire. \%h~t silt: says is so n;:lch in a~reement ~ith OLIF nwn views: ';[[~(:llzlt~?r~ are an int,'gral i/art t)( o~:r n:orlern z~e and th~'y catanot be ignor~'d. \\'e have j~t started tl) reaIlv tls¢ them and to understand their virtues." • x55 • t- f~ r ,'~ 0 '! 0350 "! ~ 3
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celltS and then to a nickel, At tile same tittle Lorillard pushed its big Rocky Ford on a national scale,, and bit. Hill, whose ex- pensive new machlne molds were turning out cigars that nmv looked smnewhat nig- gardly, had to abandon tile fight in tile sunlmer of t931. Since then he has turned bis back on that field with tile epithet "cloak- and-suit hlisiness,'t and sees no future iu cigars except.in the de luxe price brackets. (For his exploits there, see FoRrtzx~: for Febl hal y, "l q33-) "~'R. HI l.[, l-ould be philosophical about /¥Ji. the failure ill cigars, but the rebellious behavior of the cigarette market alter t931 '.,gas another matter. For ten years or more each of tile Big Three had held it axiomatic that its product, its package, dnd its plier were beyond all criticism and'dangerous to fool with anwvay. Tbeir prices, when they mo~ ed at all.' nloved together; and the near- est thing to a change in anh' product sitter blending had been introduced was Mr. Hilts intpalpable ray: liut Reynolds,fin tel- ror at tile continued deel/ne ill Cantel sales. had recklessly be~llll to question the very fundamentals of Big Three merchandising. It was in this nlood that .Mr, S, Clay Wil- liams, then President of Reynolds, had lis- tened to some du Pont salesman, exchanged N. D.'. A~er for Erwin, XVasey & Co., and.in Februal~. 193t, amlonneed tile new Cello-" phone x~rapper with a S5o,ooo prizy contest. Old Gold and Chestellield at once took to Celloph:me, and at length, six months later, Mr. l lill followed t~x,, topping the others with tile [.u(ky Tab opener, ~dlicll was speedily copied. The general adoption of Cellophane neither sa~cd tile cigarette business nor hurt it. F>ut tile next mo~e-also initiated b~ Mr. kVilli:lnls-jolted it iuto tile most abicct (~,nlusion in its llistorv. In Jnue, I qlI. the Big "lhree raised their ~dmlesale pl it e fl,lnt $6..to to S6.85 a thotnsand, anlid the applause of D,'all Stxeet and the U.S. 7"o- ba~o Jou~.aL Tilt wideslnead use of Big Tluee brand~ as loss leaders, notably by tile ,\ ,Q I' at tv, o for a qnarter, was demoraliz- in'.' the retail trade as the low tobacco pliers ~ere demoralizing the farnler, and it was tmped both situations x~ottld be helped by a pl i(e boost. But the rife(t, while innnediate. ~:ls a aenerat ~mprise. ,]ulv ploduetioll of Ci%.arettc5 fell off io pcr (rill, a llC1v iudus- tl "~ t t,l ot cl lllat ~aas shltrtlv t)e/It t'II t); ttllther detliue, that hill. The Federal Tladc Conl- misq~,n hc~:lme inquisitive. Farnl prices were nnt helped. And the A ~ IL which had [)eeu acttltllltilt~ lot llearly IO pl.'I t'Cllt ol :ill Big Three l igarette sales, was s~iun hack ;it t~o fq!r a quautcr, xdlile Utlited (~i~Al Sloll.'S t~llt)hled into :u1 iilcon%ellient t~.n toy twent~.-se',Cll trills alld Schulte lmi~ed the .£kI.lashhmcd ptotit-sharing COil [)Oll It I,~ok (;eolge flill m:ln~, ntonths to i e~,mcile himselt to tile notiun of tile prond [utk~ Strike's being an unstable bargain- counter item. He hoped he had met the pt~r mail's needs by reviving his father's la~olite, Bull Dtn'han/, which lie cut from Lucky Strike [Co,lti,,ued from page tSC,] eight cents to a nickel a bag in t93t and advertised strikingly (see page lot) thiougll- out 193.~. Sales of tile Bull and of Ameri- can's roll-,~our-own paper, Riz l_a Croix, in- creased markedly, bnt it was soon plain that the real business was going elsewllere, The new ten-ceot brands, notlexistent ilt 193o, wine sellhlg in 1932 at the rate ot nearly =o per cent of the entire market (FottTUXi:, November, t93=) with practically no allver- tising whate~er. "'i was more distressed than ever before fin my. life," says George Hill today. To make matters worse, ill 192t2 Chesterfield, pe~isting witll tile same vacu- ously channing copy thenles it had nsed for • :,'ears, was actua]l', showing a gain. An ex- planatinn was suzgested ill a study made that.year bv Hem~" C. l.ink's Psvdmtogical Corp., published in Advertising and Selling. "Wltat cigarette brand tl~ tile sincerest ad- vertising?" Mr. 1.ink's guinea pigs were asked; and =9 per cent replied "Chester- fields." with Camels and Luckies a poor se['ond and third- Meanwhile, Camels. the authors of the conblsion. ~ere hMng busi- ness exen faster ~n_atl Luckies; so fast that they fired Erwin. Wasev and took on tile unlieard-of agenQ of Wiil iani Estv,. who had just resigned from a vile plesidencv at J- %Valter Thomp',~nt, x~hcre he bandied the I.ux advertising, to :~() in bLisillcss for hhnself. That ~dnter Geor~.e I fill decided to re- verse his field. He had pnt over StS,ooo,ooo beltind Luckie~ in t93-"-warcely less than bis record appropriation of l," 3t. The copy was in tile best Hill-I.a~ker ~ein: stardingly anatomical n~t:~phs drawn b~ .[ohtt La (.atta (Do You Inhale? Why Is This Vital (~tleStinlt A~.oided bv Other Cigarettes?*) and the rasenous Nature ill tile Raw series. Bnt it wasn't ~orking. Therefore Mr. ftill opened the new ',ear ot tgj,3 ily leading a price cut fr,ml 5d"5 tn S6--the lowest Big Three price since HHS. q"~o weeks later Reynobts latinc}~,ed tile new Estv campaigm. and Mr. Hill sa~, the advertisin~ clainls lie had beett ntakin2 toe sexen years likened to tile allltlSiIId I:ti~e:', +)~ 5,t~ill~ a aA(HnJln ill half and ltoucStnis milk<an escape. Tile advertisina wor]d zri:Ined and t<m'hed to ~ee uhat Mr. ttill ~,ouM d,]. in February it sa~. The t hc::le Ol his new ad~ ertisenlents l<lS "Luckies P'.ease.'" They x~ere as illllOC!I- OtIS aS SO lllall'~ C}lcslerlield ads. "I-[icy e'~etl cotttained lade }~,,~:n~. The ad~,etti~illg ~ortd felt ;ts t i ,u2n iv had ~een I-ddie Can- tor get stziZe lri2?:t, gt [end~ ,it Albert l.asker (ould almost ]lear hint sa~.in'4 to Mr. tlill. "l.et's ~et hmsv." P,'~e:ns: t~ No~ it was it, it t:stx s uppercut IlOf Ches- terlield's ~ilttVgis sutcess n~, Mr Lhlk's findin'gs nor the f;limre of "Do You Inhale-' "When Bro:~,, -." II ::iiamron pointed out to Mr. H*ll lhat it had ,i~c'a-~red thit ve~" qurmon m the early ad;.erlisln; ~£ ~ts II'ing~ czgarctte, he with. drew the challcrti~¢ #rum iiig advertising. . ~58• speciiically that sudde,lly induced Mr. Hilt to make velvet paws. Mr. llill was far less concerned with tile mutual adverdlinl!; n~alries of the Big Three than he w'-,,, tile contraction of the cigarette mark~ t~f a whole and by the general breakup ot" the ohl price-and-product rigidity Not only were the dime hrands climtliug; a couple of nickel packages weir intt~ldnced; ~i'- ican Stores began pushing their own pri'i'llt¢ brand, Gem; the whole pattern leas mlllf'ting, Mr. Hill had ahvays defended his rougE. housing by tile fact that the ri:Tarette market for all brands increased almost as fast as Luckies. He has airways Ihougllt of LucMe~ as a sort of knight-errant for the Big ~tre~, And it seemed mole important in t955 to go after the colnInotl eneniy--whidl "~S tile UllCUnllnoniy xolatile state of tile public taste in cigarettes. Accordinglv. wheat the market did not respond to his S6 price, he cut it agaln-this time to an uttheard-of $5,5o, at which the A ~c P retailed Luckier, Camels, and Chesierfiehts for a dime a package Space ~dlleSlllClt [ItlrSt hito a SWli~t; the trade, its mvn malgin ahnost elimln~tted, cursed Hill np and dm~ll: but the tl-eat- ment worked. Total Bi,., Tllice produetiotl showed tile first gain ill lixe nloutlls. And has been increasing e~ er since. The dime brands, put on the defensixe made a gallant stand ill l, Vasbington x~ here they sought re- liel ill a tax differenti:tl The late Mr, A~xton ot :'~xt0n-Fisheu (Twellt~ (;land) accused tile Big Tbree of connnelcial tyranny-- '"File), all get together and change prices as they please'--and added that their advertis- ing was "a lot ~[ ]Hll/k "" P, ttl it was the dime brands" Gettysburg. They are still in blll~i- hess but not as a menace m the Big "l~ree. This year they will probabls not sell mote thall 8 per cent of America'~ t 18ooo,ooo,ooo cigarettes, MR H1 l.l.. un!tappil~. ~ as I1Ot the bcn¢- titiar~ of his owti ~ottrage alld as- tuteness While Canlels and Chesterfield.s gained 12,ooo.ooo.ooo aIld { clon,ooo,o~Orq- spectivety frolll i!){:{ tO l'il'~ Luckies Io~t <_,.ono.uoo.ooo. Yct Mr. Hill continued hi~ suit boiled adxmtising. "'Cream of the Crop." "'Only the Cenlel l.eaxcs," "T;~t 'Gnu" P, cst FI icnd," and the like were sorr) pabultull indeed ftlr ~tli+ lkel ~ ~h,a Itad lastex{ Sabine Wolneli and thc llt~hpo{s O[ eNi~t'gS weight F,w the lllll ,d ttciu,Z so h)oted they now looked tu Canlel~ ",,hich eottt~ smoked Ior a litt. toe ste:,dv nel've~ for digesthm's sake. William Esty had i~de~t laken the plax a~,ay [ic, nl Mr. Hill, am. tl~e Re~nolds sales liaures ,.~e!I altested. [~tit Mt Hill did not mope These ~.ere time~. hc ~axs. %hcu .ill Ihe 'ill~ ~xele ROinR nut /llld the (HITS %xq21e {t)tnill~ Ill.' ;ill{I h~ jnst la~ low lie ~as still selling some 3.4aXiO,- ilol,i)i~tl i igatt'ttcs exell ill 19 5' which, was Ui<Jlt'{!iLItl [les,)[~! ill I{t=-'~: \ndthedleering i;ttt ,,xa, that dlc total In:uket lor the Big Tluee was oIHc a~aill eNpailding, M,. I fill's ~ clrllidence ill die Lucky Strike is exteeded onl~ by his ontfidence in the tobacco bus[ut!ss, Wllen his nlother asked [ Corltlnued o. page ,6o] ¢.. tq I',RO'I0350"I 84.
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k lii~ ill[~,ite aboHt her i]IVesllllclltS i:l [ ~) ~] 1 he t, dd her t~ buy eqql:ll Parts t~t ,:kmcrican 1 obacco, I,iggett ~ Myers. and Reynolds. Albcrt l.a~ker gives the sanle advice: "'Why ll,Ot btlv the works?" It is not that they like to see C;nnels outsellitW Lutkies. Bttt the nlldcrhoy may enjoy a roughhonse so long as there is no thought of breaking arms and It'g,. George Hill feels now that his excessive lcad in l!131 ntade him vulnerable, tie w.uhl perhaps not care to otltse]l his rivals quhe so humiliatingly again. \Vith all three compardes aseraghl2~ sOltle l~ per cent on their capitalizations over the last five )'ears, it 1Vollht be toolish to distort tile gokfen triangle by expclimenting widx cigarette merchandising t~ far+ The price is back at S6.1o: the prtMucts of all three :ire un- douhtedly the I,cst tobacco thhteel) celltS can btly; the go'~erlnnellt rot:cites nearly SSoo,ool).ooo fl I )in thclo hi taxes every )'ear, and exetxbodv Wxcept perhaps the dime- htand pcl,ph')' is happy. Thus if Mr. If ill lnp~ hk curretlt radio seilsatioll with :llllJthcr series of inspired sahations, and the sales of IAltkies g<, leapiIIg a~4aili leO. loll IIIIIM relilelliber that it is all ill finl. add that the cig:uette indtlstrv as blanketed I>v tile Big Three will lie the ultintate bene- ti~kH ~ ewn more than ,Mr. Hill. ,~c'hhcr sweet tier toasted AI.THt the Creme headache, George llill dc~ided th:lt :\Illt'lR;lll ]l)llaceo ~hnuht take re'el all Altleriean (:i<Rar's do nn.~tic blanlls aim sell thenl through its ,~ ti sah:~nlen, paying its subsidiary a rental -i <l.,',-o.<,oo a )ear. Thus American Cigar tiCl ,lille a ht)lding colnpany pure and shnplc+ I+,t its iltlported tlralldS Col which tile maill- ,tar is Corona] are owned by its own snb- ,i,]'irilie~. The President of Aincritan Cigar i..tibet\ t;rc~g, who was rulnlinl{ the big New Yl,rk iohl)illg ]louse of Faber+ Cot K- (;1~ nntit 3h. tlill ~4,,t him into Anleri ~ail .alter tile X.Var+ .\ ITlall tlf ~,Teat im.r- dLandi,imz experience, hc found h/nlsclf at the head of a cmporation with S2~.ooo.- tioo a~sets, a stead;" ilnOllle alid peel-it, a ~,,~,] sah;s II)iIe, allll n(i fit\life+ .~'eilhel he uorX.lr ltillfeels:lthomcina~taticmalket. 1 hl'x thclebqe ;l~!ecl[ Ih:tt .\uicrilan Cixar .]~ottId ,2o illto tilt" l i~.nclte httsine~s, \L t I+l tills'tit \It ( ; 1"¢"~'~' ", COlll pail x hart t]li, I:lll ( tl+tll,4ed ils ll;illte tO :\lneri~ nil ( iZ;tlcuc £: Ci,-ar Co.. leased a brand Iron~ lh p;tleill, enid ~i:t+tl its cigar sale~lnen tile !il,l ,hilts red i;lltt)ll% lit tile Dew |if\cell- ar'.it Pill Mall, <"I lit. \[,Mcll~ Illend '" Tile old "'shiliin~ in I+ondon" ~mok¢ ~itt bc al- ]r~t~('d to dlift I';I]llllX :tIOIl~ on a market i<)i ] ill kish Ihat h:l~ bCell el)Hing et er since I]lc' ~,k'al; bill ils iill>dt.ilt axatar i'; ~tlil~ to 2el +he .+nks. N+m' Mr. llill's 1)c, lic.l lhat ~+~{1 lall't ~c11 a cigalette unless it has a ~pecial "merit" is ~rtiunded on the xctv real fact that ci,Z;uettes make no inoncv except by repeat sales. It is comparatively easy. if you have the money for a big pro- motion splash, to launch a cigarette. Prac- tic:lllv everybody in Chica-_;o bought one Lucky Strike ( 0,+tt+.,ii+ed ]rein page taS] package of Wings wheu Br+,wn & Williant+ son introduced them there ill 193o at tif- teen cents, Bttt they were abruptly forgotten nntil the~ emerged early in 19ge with the new "merit" of costing only a dilne. Every- body in New York will doubtless sample tile Pall Mall too. But to assess Pall Mall's chances el staving in tile nlarket, you llnl';t ponder the ~arious "merhs" that Mr. (;regg has put into it. At filtcen cents straight ($6.85 a thousand) the Pall Mall gives the average retailer a margin of about two cents, ;is against the fifteen mills tie makes on Luckies. This is itself a strong "merit" in a cigarette, as the success of Philip Morris, described by Foltttxr last March, has indicated. Again like Philip Xl.rris. Mr. Gree:g>s foil pack- age has nlatty ]ilieaments ill COnllnOll-- color, crest, to say nothing of nalnc--'o.ith the cardt~)ard box of its expensk e Tm-kish parent, and this gives it a prestige that an entirely new brand would lack. And. again like Philip Morris, the Pall Mall tobacco retains its moisture with the help of diethyl- ene gl}c.I htstead of tile nsual gl)'eerin, al~tl this. according to the subddlzed research of the Philip Morris people, makes the ci~mrette easier on the throat. From all this you might suspect that Messrs. Gree, g and trill are simply climbing aboard the Philip *Iorris band wagon with their Pall Mall, and die tobacco trade has something of that snspicion. Bnt in Mr. Hill's philosophy a "'merit" tnll~t be above all unique. The point that Pall Mall's $30o.000 worth of New York City adxertising (placed by the Blackman agency) will hammer this winter, therefule, is one that neither Philip Morris nor ally other leaditlg cigarette can make: tlatlleIX Ihdt Pall .Malls rOlltaill no sweet+ ellin~ clr !iaxorin~ matter ~vhal/,ver. If ~ ou thhlk a fleshly opened pat ka~e of cigarettes ,ulells like a candy store, yon can attribute it to the ~eelet ntixture of lluipIc cht~olate, rtml. and a do/oil Otht'l ~l;t'~l)l~ Ixhh l~}lilll llll}~t liL~2nette5 are ilOll~cll. ~Clle~teI1tc]ds 310 it'ptitt'd tl) ]l;l'~e tile le:lsl Ila~,+rip.2 ..t the 15i~ three.~ The Ila~othi~ ]a IllO!e iHl!)tll't;lllt [tJ t]ii~, ~lllt+I1 Ill;ill Ill lhe taqe tff the smoke. Btlt the S'lxCt+tt'lliI12, v, hith i~ .I xis¢OtlS bath the tobao2os Like hef+.e t~'<t'r{r II;ixl)r spray, has beell All t's+ ,cntL~] !ti.,lc, licllt \if ~i~:lrt'ttes c~er ~iucc bur!e~ :,:t, added to the pure \'ii~inia Ill+c, to make the tits\ lllend, tturlcv, and htn¢c sweerellii1z. ;ire atlst'tlt flonl Enc{lidl ,iT:H. t, tte.+ ,,hi,:l~ atcotiiits for their light color rhe nc,.~ r~hill7 abe\it the Pall Mall {s th;ll uhilc it tl)ll[Sii1s ~1 small atltOtllll ill htlllct and seine Oriental, wtlkh sets its apart li+,nI Gold FIakc'~+ Plavels. and other t(n41id~ blamls, il is neither flavored nor sweetl.ncd, whkh diiferentiates it from the pnpular .'ttnericall blends. Mr. Gre~g is relying on unadolncd to- t)acco, Ihen. m put himself importantly into • 16o. the cigarette business. AIIhough his adver~ ti~ing--whidi Mr. Hill will not write--is stcerutg clear of COlltloxersv, it is to be nuted that the merits of Ills plx×luct are conspicuously nlissing from I,uckles+ and ice versa. Any ti[timate consnriler WhO has heard Mr. Hill perslmallv e×l×)und tbe ~irtues of toasting would tx: raiher alarmed to hear that he pelntlts the selling Of a ligarette from which the "harsh irritants naturally present in every tobacco leaf' h:lxe m~t been expelh.d. But Mr, Hill's enthusiasm for l+uckies is n+)t quhe so l:my- isll as all that. Mr. tliil beIiexes e~en more suongly in competition-so strongly tliat. he totes his mvn. GI(OR(;E HII,I. ha~ c\tremelv adult tea, SOILS. ill f:n t. IOI IllllM o[ his IJtJ~ish ~ts. tie pays hintself and his three to[) exectttiv,~ more thaii SioO.Ol)O a )'ear not l)ecatll gTeedy blit becallse he wants tbeni to li~etrl their ntinds off the stt×-k market He stays away fronl the atllltl;il stockhohiers" mee~u iIlgS not because he is s~:ucd ])lit IK+(atl~e t]tele are llStl211]v Mliile tilllC ~.~.aStillg rna[+ coil\elliS tller¢ x~ ]lOlll the cnol laws'er Pal.iI ttalm can handle nlnte ~nloothls iltali lie. Mr. Hill COlltlO], .\nlel b.:ui -l'ohacco so|ely by the proxies of satiqicd +to< kh~d!ler~', tie and his entire B,~ard of Diructars (all of Wholn are otticers+ owit Iv% th,lll ! per ee~tt of the voting stt~k. Two years ago Mr. Hill was tempted, into a new way of influencing lady smokers by, Eduard Berna~s, the suhtlc mass-mind manipulator whom he used to tetahl ill addition to his regular puhlicity a~enLt+ Ivy Lee aiid r. J. Rc+~.s+ Mt P, eina~s's idea in- lolled the prmnotion ot a ('~'~aritv esent at Manhattan's XVaMnrf Astoria cMled the Green Ball. x~hidi ,~I1. ttill auonymously subddized to rh e t:lnc, +f ,, mw q:~oOoo, The purpose nf the ( ;+ ten t{al [ was to make greetl the inndish tolor of i93-+. which it infact helped to do ]{<,rll;lx~'s IleXt step w'as to Ilood the p.iI)Cl s 'r~ ith " i;l~hi~+ti nt:tt ~" tO the efle~t that t!lii,id,,', :t{ c~,~,,t ]cs ~ ou]d also I)e ~we(,ll--etl..n tt~ lilt: p;tl k;l~,e ot tier ¢i.~+ tcths gut [hc tail nl the kite never ! Off the 4:<,muL .rod Mr. Hill charged that One ' ltf [4) t'X~ )t't ~e] ]{ [J I le i~ tllllt h lnllre at he, tile [tl t+llt]H!.:[tt :~t]i:l[(}tit~ Mi I!'!~ :<k4!ItlJ<i[i{'S ;ill" tlio~C of a !11;[11 tt }i,+ L!]< ,t~ • !~ }~1[ lit' l',kl'~. I It" wears his hit tit ]ii. ,eh, ~. ~i[ it,l\ 411i{[ t2Xel~, <t;tv. l~{e likc~ tel 4,it\ [1 -;I]!tlHii ,lllll hi., likes to tlarice, alili hc <I,+c~ ,i ],~1 <~f hodl. -\t his estate cm tilt" Itud,~m ',,tt ~iII ~,'e ltlaI1v Si~lt$ Of :I {iHU ~;ll)11(l~)llMIc,M IA]l;tliC~e deer, black ;ll)ti ',t]t[[t' ~t~lll~, If ill;It(el ill t}le ~]o~4~r ~;n/len. :i i)i<,tl/c IItliI ])ilihalll sllarintl ]l(lll<,l~ t~ith ,i \t'llll,i tic ~|i]ll ,I]t1011f the ~tattlal\. !itl2c ~P1At:l(terlcs':. iz, aitltiil~$+ l{e {~ I klil}l~ill2. ,Iliitctlr el ~httib~ arid trees. tHlt !lit liuic it ilHIIle I~ ln+l~llv spell\ ITS- It'\liltZ Ill r!!t' l;idill eli+ tcadtilt~ ;i ,tetectivc ~torv. Nctct d,,t'~ hin umbiie inlaginatioii sir:iv iar fI,~:lt the things that excile ;the coInnlt>n taste. Mil:tcuhnl~lv attuned to t~ he is at his happiest when he feels ~t re: Sl~mdhi,z to hN own emhusiasm fi:lr ihe toasted ci~alette +t" 035018S
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GUARDIANS OF LIFE AND PROPERTY You may never give a second thought to the old man who ha~ls your car as the flyer rushes by ... but the cost of his carelessness would be terrible. People are nearly all that way obout protection. Its value is so often underestimated until it fails. One of the jobs of Motor Control on thousands and thousands of machines in industry is to guard not only equipment but the men who command it. Until it fails, Motor Control does seem so incidental, so unimportant. A careless, unconcerned attitude in the acceptance of Motor Control is dangerous. Thinking executives realize this and take steps to avoid its penalties. Sometimes they insist on a searching test of every piece of Motor Control purchased. Thousands of other executives achieve the same result by simply standardizing on Cutler-Hammer Motor Control. Your factory will find either course well worth while. CUTLER-HAMMER, Inc., PioneerManufacturers of Electric Control Apparatus, 1320 St. Paul Avenue, Milwaukee, Wis. CUTLER-HAMMER MOTOR CONTROL FROM THE MIGHTY TO THE MIDGET Cutler-Hammer Motar Cantrot stc~rts, stops, reg~tatus a~d pro- tects electric motor| ot e~ery ~i,~e and description. The huge ga~e controls of the Famous Wetland Canal locks and t/~e cold control on your own hou~ld ~efrtg- erator are prgbab~ b~"Others • . . products Of CU~et~rHammer. II• f3 T ,.~ 0 1 0350 "! 86
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+ .... Ki3DLS,.f, ,,ss ! HANDSOME NEW PREMIUMS SAVE B • W COUPONS IIAI.UGH (IGANITTlS...MOW AT POFUI.AII PlllCiS...At$O CAnY II It W COUPOI~ Do better by ,vourselfthi+ v, irtter--sm.ke K~DL$. When overheated rooms dry out your throat or ,-nimes spoil y.u for hot smokes-- smokeg(]DLS. Freezing: ~eather. sudden thaws, ate nights esr|y pames-- • ou'd better smoke K(]DL5. Their touch of mild menthol soothes and refreshes. Their better tobaccos have won millions of friends. And each pac k carries a B & W coupon good for fine premiums. Winter~ tough on any throat. ~,|ake yours KODIg.! " ~. Wi,k I,,,..,~ ~,,,~ I,,m~ n..,d~ *. ~p mist , ! .+ ]:~(:.I 03~0t88
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i~;'~'- - FORTUNE --- JANUARY, 1931 -- Camels of Winston-Salem Which "are not disconcerted by the advance of any competitor"; which climbed on the shoulders of a good Reynolds idea, great merchandizing, and the War, to a peak where they could pour $]5o,ooo,ooo cash into the pockets of stockholders; which in seventeen years of happy fertility have never once failed to multiply. "¢ IN PATRICK County, Virginia, jmt above the North Carolim~ line, a sizable hill goes by the narne of No Bmino~ Moun- taia. Beneath it there was once a tobacco ~lantation and factory owned by H. W. eynolds, who*e son Richard left the shadow of No Bufines* Mountain as soon as pcmible, wandered southward, and set up a business for him~lfin Wimton-Salem, North Carolina. That was in x875. Thlrty-eight years later, in i9*3, we find thh man, jmt released from the American tobacco trust which Jam~ B. Duke created, revolutionizing the tobacco industry with a cigarette wh~e name he chose (t) became hc liked mximal names; (2) because this one connoted the Orient; (3) because, of soveral thousand suggestiom, ro~ k~,w Ct. 7- Camel was tamest to pronounce. ~~ Yet he did not merely create the world's t.~ greatest cigarette. Second only to James B. Duke, he is the father of the modern $ t ,ooo,- ooc,ooo tobacco industry, out of which have ,clung snch fortunes as thole of Anthony • 3rady, Ryan, Widener, Whimey, Payne, and id.iI Duke. With .... troke he started a dgarctte ~ ~.._~[ ,< landslide, which has not yet stopped sliding. A bit of fine paper imported fi'om France, wrapped tightly around a new combination - [ /~ of tobacco*, and sold under a somewhat unlikely trade-mark, created a revolution in the tobacco industry that shifted the emphasis from Virginia and Kentucky to e,* D i cigarettes, and from men toward women, p$ Before Camels were invented, Ameri.'ea was producing about [o,ooo,ooo,ooo cagarette3 , ~1 I~'/ ~1 IV a year, a large proportion of them Turkish. Leading domesdc brands, such as Piedmont and Sweet CaporaI, were made of unblended Carolina leaf.. The higher-priced Fatimas alone were pointed toward the future with a blend of some Go l:mr cent domestic leaf and 4o per cent Turkish• Let us not be ingenuous enough to propose the famed Camel blend as sole and sufficient came for the Reynolds . . revolution; for the success of Camel is based quite as much on great mer~chandizing, eft% dent machinery, and foresight as it h on tobacco; and Camel participated, besides, in the amazing luck that felt upon the tobacco industry during and after the late War. Yet the fact remains that the year the Camel THE SCHEMJ~ OF A TOBACCO PLANT blend appeared, cigarette consumption lea# to t5,5oo,ooo,ooo. Today, with three By cutting bottom leaves, by [imitirt~ the height of the plant, the f~a'm~ can improve on hht ml~cco. other major brands having adopted the fun- The be~t leaf com~ from th~ cemcr ~ the mdk. • 45 " damental Camel idea, it is t2o,ooo,ooo,ooo. And again, as a result of that blend and merchandizing, the R.J. Reynolds Tobacco Co. has been America's most profitable tobacco concern, doing a business unofficially estimated at $3oo,ooo,o~o a year, frequently ~imYing enough daily federal taxes to build ton-Salem's spanking new post-offiee in the morning, and another one just like it in the aRernoon. Its manufacturing is loo per cent concentrated in this quaint, provincial, tobacco-scented town, where many houses are of old Moravian brick laid up in irregu- lax bond, From the narrow, killy streets, from the crooked roofs (under one of which the ubiquitous father of his country spent the night), there rises the spruce spire of the R. J. Reynolds Tobacco Co. building, Carolina's proudest skyscraper, with automatic ele- vators and twenty-three floors (the thirteenth, eliminated). And gathered m a crescent around it, within a three-minute walk, are block upon block of Reynolds factorie% the older ones with old-fashioned sash window% and connected by ttying passages upoo which are painted the flaring mmouncements that CAMELS LEAD THE WORLD. There are other industries in Winston- Salem, notably Chatham Manufacturing Co., famed for its blankets, and P. H. Hanes Knitting Co., famed for it~ cotton under- wear, but were they all hut Reynolds re- moved, Winston-Salem would still be an important spot on the map of the U. S. This second-largest city in North Carolina, with a population of 8o0oo, is known a~ Camel City; its bus line is Camel City Coach Co., and there is a Camel City Cleaners, and a dozen such. More than half the resident families are directly. Connected with the Reynolds Co., and it is a rare family of consequence that is not interested in Rey- nolds stock. The activity of the ~2,ooo Reynolds employees is quite prodigious. The Reynolds buildings are heavy with machines from which jet forth all day long hundreds of white cigarette strearm, each at the rate of 8oo smokes a minute, totaling some 38,ooo,- ooo,ooo a year; and besides this there are compounded and cut millions of tins of Prince Albert, the nation's mc~t popular pipe tobacco, and millions of pounds of Apple, Brown's Mule, and Day's Work chew- ing tobacco*. The Winston-Salem South- bound Railway, Norfolk & Western, and f l',',qO'l 0350189
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• i: :~:::~: i~i:~V~?~:~:~ \ Cs~ml A~ T~B C~, A TOBACCO CROP IN CAROLINA'S GOLDEN BELT • 4.6 • ~.~T~ • ,.~0"I0350"I 90
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/ In Winston-Salem PRESIDENT BOWMAN GRAY Formerly • udem~n fee IL J. Rey~i&, he is now one of the laxge~ st~ az3d owra a va~tt estate. x./. ~m,JdJ T*k~r* c*, CHAIRMAN W. N. REYNOLDS He know1 how to "read tobacco." With ~ brother, R. J., he started from No Bmlneu Motmtam. ~:Zi;i!i!iiiiiii]!iiiiiiiii~iiii!i!!ii!!i!'!ii!i!!!! i~i~ !ii THE LATE R. J. REYNOLDS Next to Jame* B. Duke, tobacco'l greatest me~clumt, who rev~udonhed the h~dtwaV with Camel dgare.~. PROUDEST IN NORTH C, AROLINA RICHARD JOSHUA REYNOLDs I~ the Reynokh ~V~tp~, twenty-three ttoti~t, built He it the eldest son of 11- J. Re3mold& but he by Ma.uhatm.n'* Shreve & Lamb, czui~ ~,Sa~,eoo. luu no bc~u~ connection with the Re-tno~ Co. e BIR.M1NGHAM'S RIVAL IN THE PRODUCTION OF RAILROAD REVENq_:E--QUAINT WINSTON.SALEM Some of the efficient R.J. Reyno~d~t Toba~:o Co. factortct are lhown in the fore- hatvial] been outdittana~d by Ciaarlotte in the [•st certttL [ ~ five pretmet- fami|ies ground. Thls it Neeth ~'* *ecznd large~ city, with a population of 80,000, are Reynolds, Gray, Hane~ Fr~ and Clmdmm. Half hi population it black. • 47 " T O 1 0350 "19 "!
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Southern Railway carry away an average of seventy-five carloads or Reynolds products a day, in traim named Camel S~',~I, Albert Special, Gtorgs Wa~hing~ Spe~al, Tcr=k Light, and Brown'sMuk: such that the ra~road revenue derived from this area, due to the high cla,s of freight handled, rivals that of busy Birmingham or metropofiran New Orleans. It is a tobacco town, first and last. There is tobacco in the air and tobacco in the minds of most of the eidzem. So characteristic is the smell that the true Winston-Salem citi- zen is restless and ill at ease when away from it, sniffs the air with pleasure upon his return. And it is probably impossible to indicate, in any mere outline of its premier corporation, the spell that this weed has cast upon the people who grow, sell, handle, and manu- facture it. The Indians worshiped tobacco as sacred; the southern planter or tobacco- nist does no lesa. Toward any leaf presented to him for inspection he is critical at first, but if it meets with his approval he loves it in a fatherly, knowing way. He feels it with his fingers, smells it with his nose, measure* it F T with his eye. He love* its texture, its shape, its odor, its taste. He loves and he knows. Chief-Buyer Reynolds: his art Now if the Camel cigarette is based on any one thing more than another, it is upon this knowledge and this love. For R.j. Reynolds grew right out of the tobacco fields; his younger brother, W. N., who is now chair- man of the board, did no le~; and not a sin- gle executive has been with the company for less than a dozen years. There are no out- siders in Reynolds, nor can its remarkable career be credited to any single man. It is a directors" company, and--what is even more remarkable--every one of the directors is at the head of a department in the com- pany's immediate employ. A description of the leadership would be a de*criptlon of these twelve men, headed by Chairman W. N. Reynolds and President Bowman Gray, it is true, but exhibiting a remarkable gen/us for the distribution and cotperadon of power. Chairman Reynolds himself is the tobacco buyer-in-chief, and he is known throughout the length and breadth of the Carolinal. Kentucky as the most expert leaf man who appears on the auction floors. For .t~ sacred inspiring weed is never sold. It ~ auctioned. It is brought into every fall by the farmers and piled in ~eat geometrical designs in the wide flat bar,~tJ that .the auction eompanie~ provide. On each appomted day farmer% buyers, and m.t¢~ tioneer assemble--the latter one of the mc~'t ~cture*que figures in American industry. at on the back of his head, hands in his hip pockets, his body swavlng, he fi~p croons down the tong alsles of ~ kets. The buyers follow him, bidding, K~- time* by signs, sometimes aloud. "[']m a,"tiotl is extremely fast, extremely acomZt¢, from one end of the wa-~home to the ottmr the traiLing uninitiate will not undetttattd tt word of that perpetual, urging song ~ it rise* and fails. Onto these busy floors at the height 0~the buying season steps six-foot Chairmaa of the Board W. N. Reynolds, just as he did C~es;, ,Smm Tek,,,rgB Ce. ..... EVERY NEW TOBACCO CROP MUST BE BEGUN IN VIRGIN SOIL THAT HAS NOT BEEN USED FOR AT LEAST A GF~TION, IMNLF.,NSE CROPS ARE sOWN IN TINY INCLOSURES AND THEN TRANSPLAN'TED TO SANDY F1ELDS • 48 • t, f3 T ,'qO "1 03 5;0 "I 9. 2
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i ........... • ~,~ ~ ~, -,, ~--~7~-,-~?~', i;~,~ , ~ - ~. .... ~:~'~ ............. ~ = ~-'~:~-~ ~ i¸ !:ii~;i~iiiii!~i~iii~!~iiiiii!ii~!iiii~ i his company revolutionized the tobacco in- dustry. W. N. Reynolds knows tobacco lea~, and he knows the supply and demand on any tobacco market. He has under him keen buyers in Kentucky, Tenntmee, Virginia, Georgia, the C, arolinas, and these are official- ly headed by T. H. Kirk, vice president and director of the business. As a result of this buying shrewdntm, the Reynolds inventories present an inter~ting study. Since tobacco must be kept for two yea~ to mellow and sweat, inventories in the tobacco industry are somewhat staggering. In the case ~" American Tobacco Co. and Liggett & Myers, they have shown a tendency to increase in direct proportion to the increase in sales. But this h not the case with Reynolds, ex- cept over a very long stretch of time. Rey- no|ds is an opportunist, buys heavily in years when the desired leafis plentiful, buys scantily when it is scarce. A profound knowledge of leaf and m~keu may thus effect a saving of millious. In t9~7, for ex- ample, Reynolds's inventory was $toS,ooo,- oo¢>--highest for all time. That was a year of Reynolds leaf. Since then inventory has de- clined to $9o,0oo,00o, while those of the two great rivals have steadily climbed to more than $1 oo,ooo,ooo. There exists in America no more com- petitive industry than this one of buying, manufacturing, and selling tobacco. The competition was a deliberate creation of the mind of James B. Duke, who built up the to- bacco trust and, by order of the federal court, unbuilt it again. His achievement is unique in the annals of American industry, and in the study of any major tobacco comlyamy except Reynolds would have to he investi- gated in some detail. The tobacco trust o~aed a majority of Reynoltis stock, but the Reynolds company was never absorbed, is sdn the same corporate entity that it was before the trust was formed. All that Reynold~ in- berits from the trust is competition so fierce that even the simplest figures of manufacture and sales are withheld. The whole tobacco business is in that primitive industfial state in which the publication of production figures is thought to be harmful, and consequently the embattled terrain of cigarette manufac- ture is fiddled with speculation, guess, and unjust conclusion. No one really knows how many Camels, Luckies, or Chesterfields are produced every year. The figures used in this discussion are frankly mere estimates, drawn from the most reliable sources~ yet without any official character. If one had the patience to add together all the estimates, a figure considerably in excess of the total national production would be reached. Because of this situation, the Reynolds in- ventories have been studied vdth some care. It is accepted in the tobacco world that Camel buys only the highest grades of leaf; how then, some may ask, un]eas Co.me[ Failroduction is failing off, does the inventory some $t7,ooo,ooo in two years? The Camel answer to this question is simple, catholic, and unanswerable: C, amel produc- tion has not fallen off. Indeed, it seems un- questionable that in the sevealtecrt years of its TOBACCO'S FIRST TOASTLNG~THE FLUE-CURING PROCF.,SS The farmer loads hls tobaco~ into thele homdy hams, whett it hangt ~a etcm-,tieka. Under it art ~ flu~ coane.cted with the two h~rtht ~ ~ .MI day ud night tt~ are fed into the hearth*, raising the tern. pe.~ture grlgluaUy to • Imamimm ~ ~14o ~ Fahr~t. ~ tlt'~ beskle the• flr~ to that the ptc~om crop will not be ruinoi. The proceu wu ~ by Farmert Eli and Elhha S|ade of Din'ham, ha t8.5~. existence Camel has never failed to ~a somewhat unique fact in industry. One is forced to the conclusion that here at ~'mston- Salem stands a very substantial monument to the co6peration of talent and knowledgc. If Reynolds figures were made public, the ~oundres~t tobacco season would probably be to be typical. It is the habit of most large companies to stand off from the mar- ket a little, when the crops first come in, but in Aunt, 193o, when the tobacco crop ripened in Georgia, the Camel buye~ de- cided to buy. Since then, ~93o has turned out to be more expensive for late purchasen, and while Vice President KArk's require- ments of these tobaccos in October were 8o per cent filled at low early-season prices, other companies were scrambling for good leaf on the auction floors of the Carolm,xs. The raw material: bright leaf blend As has been stated, the blend which Rex.- nolds buys with such astuteness was rex'otu- fionary to the tobacco business when it first appeared and has had much to do with the fantastic growth in popularity of the cigar- ette. It is based upon bright tobacco, which now grows in North and South Carolina, Georgia, and Florida (see map, page 53). The properties of this leaf were first dis- covered in ~gs~ (another tobacco revolution) when Eli and Elisha Slade, on a farm near Durham, North Caxollna, heated some of their crop over hot flues. The tobacco emerged from the curing proc~ a wonder- ful, clear, rich gold; it was sweet to smoke, and most miraculous of all, uo other tobacco in the world would so react to the Mchcmv of the flues. This leaf became famed, not only for its color, but for ira mildness; was already the bash of Bull Durham, Duke's Mixture, Piedmont, Sweet Caporal, and many another hrand when R. J. Reynolds based his new blend upon it. Hc then added rich brown Burley from Kentucky--a step whicb was perhaps as radical to the cigarette business as any other--and enough Turkish to constitute less than a5 per cent of his cigar- ette. The whole mixture Reynolds sprayed and dipped in certain flavors, than which nothing is more secret except the Camel blend itself. Less than a dozen men in the world, perhaps no more than half a d~zcn, know the complete Camel formula, A knowl- edge of it would mean an absolutely expert knowledge of tobacco, for into it go from twenty to twenW-five distinct types of leaf, each type having three or four subdivisions-- up to 1oo different tobacco classifications. Tobacco, like wine, has its special crops, special flavors, and aromas, but the American ~renPle are not educated to tobacco as the ch are to wine. Consequendy even the finest blend in the world could never become the pacemaker without merchand/zing and advertising, and in order to understand what Camels did in this regard, it is necessary to remember what James B. Duke had done. Mr. Duke started fife on his father's to- bacco farm near Durham, ~fith pardonable • 49 '
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envy in hi* eye for the flourishing bminess of one John Ruffm Green, whose trade-mark was Bull Durham. Spurred on by a desire to overtake Bull Durham, he developed his father's W. Duke Sore & Co. at an alamfing pace; finally moved his headquarters to New York, where he waged a buccaneering, price- cutting war, and advertised on a scale that the nation had never seen and hns never yet surpassed. In one year his advertising bill wa~ exactly double his net income, andjmt before his competitors crumbled he was spending ~o per cent of gross on advertising. Thus was planted into the tobacco business the advertis- ing tradition, whose most active ~ponent to- day is George Washington Hill with his Lucky Strike. Thus also--and this is the im- portant point with regard to Camelv--there was planted the tradition of premiums, coupons, and pictures of baseball player* for which little bop nagged their fathers. A~ the American tobacco trust absorbed more and more competitors, this advertising abated somewhat. But in tgt x when the courts dis- solved the trust, the cosily premium mania was born anew. The merchandizing idea: no premiums, one brand It was at this point that R.J. Reynolds conceived the idea, unheard-of and unique,' of Kr~...* marketing a cigarette without premium~ or even ~o much as a picture of a PemacoL~ Rifleman. Tobacco value was to be the" slogan; the Camel smoker was to be g~'tta hi* money's worth in tobacco, not in plctm~ for h~ little boy. The American public saw the point. Even to ~ day the Camel p~.ek- age c~rrles the announcement: "Don't iook fcr premiums or coupons, as the cost of the tobacco blended in Camel cigarette~ hibits the me of them." By 1917, four y~m'~ after this idea was launched, Camel was tim largest selling cigarette in the country., clo~g about 40 per cent of the nation's cigarette business. But the Camel merchandizing idea Wiangular--the novel policy of ~ tto premiums was only one apex of it. The t~]ec, don of a single brand upon which to expond all advertising strength and selling inger~ty was an innovation almost as radical, and v, as the first step in the concentration of the modern cigarette industry, into three or four leading brands. The gap between any o~ of the "big three"--Cameis, Luckies, and Chesterfields--and their les~ emphasiz,ed brethren, such as Lord Salisbury,, P~edmom, Tareyton, or even Fatima, runs into the thirty billions. And this second a~g~e of Reynolds merchandlzing leads directly into the third, namely, an absolutely ttatiotm~ distribution. Before the appearance o f C.ameb, • SO • i ,,~0 'I03 GO 'I _q.,.~
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..... ..... 4• SOME OF THE VAST PORTO RICAN TOBACCO FIELDS WHOSE LEAF IS USED IN CIGAR FILLERS 0 THE MONI~Y CROP OF CONNECTICLrr IS TOBACCO FOR CIGAR ~q~APPERS. THE SHADE WRAPPER LEAF IS GRO'¢~.'N UNDER CLOTH TO PROTECT IT FROM SUN, WIND, AND HAII~ AND TO INCREASE THE CONTENT OF MOISTURE IN THE SOIL fgTNO'! 03S019S
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leading cigarette manufacturers sought such distribution by the marketing of a large num- ber of brands, each emphasized in and favored by particular territories. R. J. Rey- nolds was the first merchant to attempt the popularizing of one brand in all districts of the country, and succeeded so far that to this day Camel is known for its thorough dis- tribution in rural districts and in A. & P. stores. Other manufacturers have imitated Reynolds in this regard, the most recent as- pirant being P. Lorlllard with Old Gold. It n certain that some of the recent gains by Lucky Strike have been accomplished at the expense of American Tobacco Co.'s smaller brands which are being replaced in odd sec- tions of the country by George Washington Hill's star performer. The advantage of concentrating all efforts on one brand is that every new customer for the brand is a new customer for the company. When one company manufactures a number of brands, this is not the case; and such a manufacturer is further handicapped by the fact that the discontinuance of any brand is a total waste of all the adverthing and sales ef- forts expended upon it. Reynolds daringly pushed CameLs out in front and announced that everything the company knew about tobacco would be devoted to that brand. As a result, when the World War came, Reynolds was established in the minds of smokers. While all manufacturers in whatever lines object to the statement that the War bene- fited them, nevertheless, it becomes more and more appacesxt that many an American in- dustry grew up to long trousers through the War. The tobacco companies grew from siz- able younglings to #ants. Half-hundred millionaires What is the connection between war and tobacco the psychologists may know: we do not. But it is certain that during and after every war the con.sumpdon of tobacco icapa ahead. The cigarette itself, which Russians and Turks had smoked for generations, came to western clvi.lJzatlon from the Crimean War. During the Civil War Sherman's troops looted the tobacco factory of John Ruffin Green in Durham, temporarily ruining a lively war-time business. But in a few months, after peace was declared, the looters and their friends began writing back to Durham for more smokes. The factory was enlarged, and not so much at the expense of other manu- facturers as by an actual increase in the taste for tobacco. Durham took its place on the industrial map, Bull Durham on the nadon's billboards. Thereafter North Carolina's fed- eral taxes began to climb, undl now she pays more than any state ~xcept dtanic New xl ork; and in cigarette taxes pays vastly more than all other states combined. Every cigarette manufacturer benefited by the tobacco taste which the late War created, but Camels benefited outstandingly became they were doing 4o per cent of the cigarette business. Govcrument contracts to supply smokes to the soldiers were allotted to various companies in proportion to current sales; hence, wiByn~ly, many a soldier smoked Camels. While cigarette commmpdon more than doubled from 25,non,non,non in t9t6 to 53,non,non,non in tgzg, the Camel ratio to the total remained constant; and as a result CameLs emerged from the War producing more than 2o,ooo,oo0,ooo a year--nearly as many as all manufacturers had in 1916. Camels have fince continued to boom--the old tgt9 levels have fallen away into the limbo of childhood; and Rcy'nolds stock has made many a millionaire, such that, before the crash in November, t929, there were half a hundred of them in Winston-Salem. A purchaser of Rcyrtolds stock in t9t3, when the Camel was tint brought out, would have plgaid $270 a share. Had he taken up the 1918 hts for $1oo, each original share would now have become xoo shares worth some $4,7oo and he would have received divi- dends totaling more than $ t ,6on. Since x 917 nearly $t5o,ooo,ooo has been declared in cash dividends on the two common stocks. The company ha* no bonds, and retired its preferred stock in t9a6. With substantial re- serves huih up from past earnings available for expansion, and with the inherent stability of the business, Reynolds has in late years greatly liberalized its dividend policy. Of $gL5oo,ooo earned from t927-29 inclusive, $77,5oo,ooo has been paid in dividends, or c...,,~ A..,¢+. r,~t. c,. THE CRUX OF A CAMPAIGN This is the ~ of Gt'orge Wl~ton Hill's Lucky strike ~ in DurhJm~ N~rth ~na+ The giant pipel lead up from the toxttcr, known ehewhere as the drip', and cocduct the irritating fumes to • con- d~. Piped down the tide of the building, three barreh • week are collected and told to make iu~c- tickle~ Frm'a all Lucky S~i~ plant* ~dr~elem f~ tt~ o~l*cut,d remake tS,ocm daily Csllom of Ra-ay. • 52 • about 84 per cent. This is a slightly larger slice of the earhings than expanding Ameri- can Tobacco Co. can spare at the momtmt, and considerably larger than comervative Liggett & Myers can afford. The asset value of this fabulous earner is certainly enormous, but has little to da with the printed balance sheet. Most of it is i.~tan.- gible. The depreciated value of the phmt and real estate xs given as but StT,ooo,ooo---a figure very slightly in cxcesa of one year+s ad- vertising bill, but the brand value of Camel is one of the most valuable properties in An~rb can industry. It is lumped into goodwill a~ written down for St.oo, but some idea dits worth can be obtained by comidering timt millions of smokers cannot tell one blend from another and rely chiefly on the impt'z~ sions of the eye for the formation of~g habit*; and by comldering, also, how diff',~dt it is to persuade a smoker to change fi'om one brand to another. For purpm~ of equalization of profits-taxes the U, S. Government estimated the value eft tt.c'y- notds's trade-marks at $too,ooo,ooo. Such is certainly an under-eslimate. And this glittering domain was mostly created by a wad of weed rolled into a tlttle piece of tissue paper--an article that st~nda out in American industry as one of the aim- plest, the cheapest, the most prep~te_rousiy taxed. Cigarettes of the Camel ~ a~ quoted at $6.40 a thousand, which, with discounts of ten and two, yield $5.65 per thousand to the manufacturer. On this, the federal tax is no less than $3-0° per thou~ which is to say that the balance left tobacco, paper, manufacturing, pactmg~ng, distribution, advertising, and profit equah about $2.65 per thousand--about one-q'~m'ter of a cent per cigarette, or just about five cents per package of twenty. The actual cQIt cff manufacturing one Camel is as secret an item as the Camel blend or the Camel production, but it is obviously the merest fraction of cent. The cost of Camel advertising is some- where between three and five one-hund~dt~ of a cent per cigarette. Were it no~ ~r the extraordinary tax, cigarettes could retail at eight cents a package and produce crest larger profits than are now bein~ made. Ownership of ReynoIds i_~ dlxided into $m,ooo,ooo of Class A common ~tock, which carries the vote, and $9o,ooo,ooo of B, which does not. The latter is Winston-Salem~ most popular stock, the former is R~nnoids's most cherished child. At the dissolution of the to- bacco trust, every trust stockholder re~elved his share of the control of Reynolds that the trust had owned; conseq urntly the stock was, widely distributed. But the g~'nolds com- pany pays large bonuses to it* employe~, and for purposes of unity and concentratlon+ the size of each bonus is proportionate to the amount of A stock that the employee Ow'n~ • Employees of whatever rank are encouraged to buy A, and the result has been to ph~e such a premium upon the voting stodt that few outsiders find it profitable to hold. Idttle by little it has drifted back into the orgmliza- tion; outside the company walls it has been largely replaced by the equally profitable B, with the result that while the vote is cmlom- stated in Wimton-Salcrn, a great proportion 7",'qO '1 0350 "! 96
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I - 3 "[HE THREE TOBACCO REALMS--BRIGHT LEAF, BURLEY, AND DARK FIRE-CURED The Luck~ Stri~c f~,~rts rtprtse~t capacity; the Camel figure, approximate production. But ~11 production flg, ures m-e de~li~l, on prit~pte, by the companies- RI,,~OI 03~0";97
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of the Camel dividends are sent out of to~n every quarter, and notably to New York. The grand old mercham and tobacconist, R.J. Reynolds, died in t9t9, leaving one of the largest estates in the South to his wido~, his two sons, Richard and Smith, and his two daughters. The children's portion of the estate is handled by the Safe Depofit & Trust Co. of Bahimore. Neither Richard nor Smith Reynolds has entered the Reynolds business, and both of them are considered somewhat unruly by the come~'ative citizens of Win- ston-Salem. But if the younger Reynolds generation finds other occupations b~idrs tobacco, not so their uncle, W. N. Reynolds, "~ hose leading passion is for this pungent, some~hat tem- peramental leaf. He can "read tobacco," which is the farmer's way of expressing a knoMedge of texture, shape, weight, size, smell, and color. Having started in d~c manu- facturing end, where every gored leaf man must be trained, he knows the effect of the machines and the driers on any gixen leaf. 'Tobacco is subject to all the usual hazards of farming, to pests, failing soils, and unfavor- able • ,~eather; but ha~ing pas~ed throu~'h these successfully, there is yet the hazard of curing which the farmer must undertake himself. Even after the tobacco is purchased, it will remain on Mr. Reynolds's hands for two year,s. It must be kept in warehouses of proper temperature and humidity; it must sweat regularly, spring and fall; it must be guarded against spontaneous combustion, v,'hich is apt to occur in the hot season..-ks minutely as anyone else, W. N. Reynolds kno~',~ these things and the precious Camel formula and the limit to which the tobacco can be heated in the drying macl'.ines. Mr. Reynolds became president in 19t8, a year before his brother's death; he became chairman of the board in t9~4, when Bow- man Gray ",~as raised to the presidency. As Mr. Reynolds kno~s leaf, Mr. Gray knous sales. He was employed in the Wachovia National Bank at a salary of Shooo a ,'ear. Perhaps with some premonition of fabulmls destiny, he decided to sbift to tobacco lbr a monthly wage of $25. They ~ent him ,,ut nn the road, ~,here iae ~old I,!U~ so succcssI~]l~, that ~hen the ne~ northea~clit di\ iaion was opened up, they put him in charge of the headquarters in Baltimore. Since then he has had a rather free rein ~ith lfis -,, n p.licles, which he e,.oi~ es behind an ar-apb desk ~ith an expression of gravit':'. He ab, ats appears somewhat larger than he is, being actually short and thick-set .\ great asset to the brini- ness is his remarkable memc:rx', which takes him back accuratcb to faces, names, and in- cidents of his selling clays, twenty, thirty years gone. A terrific ~,orker. he x, iIl now and then lay dm, n his tools for an European trip, and by way of importing European culture. he and .Mrs. Gray ha~e remox cd ~ title rooms from Wouraine chateaux across the Atlantic for their enormous new house outside of Winston-Salem, just across the highway from "Reynolda." This house is talked about throughout the Carolinas, has a private tele- phone system extending into e~ery room v, ith ................ : " r " "y ...... :,, -- up to fifty outlets. Sir. Gray's brother, James, came to Reynolds as a banker from the Wachovia Bank & Trust Co. and is another important su×kholder. And all the other executives, who are knm~n to each other as the Reynolds associates, are substantial stock- holders, playing their directorate r,51es in the peculiar cooperative nnit that is Reynolds. Camel-Lucky battle So much for the empire founded by a great merchant. The question now arises as to its future--a question which the jounaalkst ap- proaches with some hesitancy. Predictions for t93o are that national cigarette consumption • *ill show only a very slight increase---not more than I per cent. At the same time Lucky Strike has been making a startling advance--in inspired moments American Tobacco Co. clalnts 42,ooo,ooo,ooo for Luck~. Strike, claims a gain of 5,t47,ooo,ooo for the first ten montba of 193o over the same period last ,,'ear. All that can be said ~;ith certainty is that Lucky has gained substan- tialh" on Camel, just as Chesterfield gained on both brands sexeral -,.'ears ago. Camel gain for 193o ~,ilt probably be less than Looo,ooo,ooO. But this conclusion is a pre- cipice from which he who ventures farther leaps at his peril. There have been su~'%ys to prove that Luckies have passed Camels; there have been other sur',-%,s to prove that they have emphatically not. The estimate that FORTL'YE has reached, after some painful research, is that Camels are not producing more than 38,ooo,ooo,ooo, Luckies not less. But even so. The question of the actual, and perhaps temporary production figure does not seem to be fundamental. For a ciga- rette is not merely a cigarette, it is--by virtue of the nation's peculiar inabdity to tell one blend from another--a name and a policy. By contrm~t to these two fundamental aspects, the frantic race for production takes on the character of a mere game. With the oldest of the popular-priced blends. ~itb the most effi- cient manufacturing unit. ~th the shrewdest bu'eers in the tobacco ~,orld. with Re vnolds's ad,,erti~in~ ante limited to SI5,ooo.ooo a~airlst .a, nlcrican Tc~,p.ccc/s ~2o,c~oo,ooo, ~xitb a tradc-malk ~rittcn dt,~x n to $1.oo but offier~dse nearly priceless. ~ith a physical and eomomic concentration rarely fotmd in industry, the question of ~.hether ~ :,marls are holding their own in the ra,e f.r ci~rarette popularit', loses something" of its force. For should any one pass Camels this year. at least one va!id ans~er seems to be: what of it? In dealing ~ith such enormous merchandizing forces as we arc here considering, judgments can he pa~sed only ~dth regard to long peri- ods of time. Tbe "*hole intricate and intan- tfible question of the trade-mark opens up-- a question ,,, hich is as difficuh to handle as an':thing in industlT, since it is based upon psycholoD' rather than upon fact and is as a result nexer susceptible of measurement. Whether for the color of the package, the simplicity of the name, the aroma of the blend, or the belief that Camel puts more money into its tobacco and less in advertis- ing than other bran& do, there are mil- lions of smokers who will have nothing ¢ise~ Advertising battlefield One thing is certain. Price-cutting will never solve major problems in the cigarette industry. The possible cuts are too slight and too costly, and as any retailer knows, the male sex prefers round dimes and nkkeis to odd pennies. The major campaigns of this industry must be fought out on the nation's billboards and in the nation's periodicals. Here lies the crm~ of the future, no matter what the present producdon figures arc; aud by way of closing this discussion it w~ll be well to take a look at the advertising that ls being done. Camels appeared on the national battle- field under the slogan "The Camei~ arc coming"; a picture of the desert was shown in which R. J. Revnolds's. animal motif ~a,~ made more and more prominent ~ the ciga- rette • ,*,'as marketed. It was a new idea and cleverly presented. In days when popular- priced domestic cigarettes were unblended with Turkish tobacco, it carried witk it a proper connotation of ffic Orient_ Further- more, it wm~ cnnstantly backed by the ~ate- merit that money which other manufactur~r~ spent in premiums and coupons was b~ng used by Camel for the purchase of tl~ best tobaccos--a statement that Reynolds has made billions of times on the hacks of Camel packages. But the point to be noted here ]~ the gradual disappearance of the animal motif from Camel advertising. Nose it is all handsome youths, girls (alv;a'y~. conserxa. tire as to le~ and nes'er actually smoking a cigarette}, the sea, and some catchy Fktrase, Tbc ship of the desert has quite vanished into the haze of billboard histow, hat been re- placed by more sophisticated appeals' In- deed, it would even seem that the word Camel is all but a liabilky in th~ modern world of sunnv s~dmmimz bea(l'~es attd young ladies in Parisian attire; Luck3~ Strike is perhaps less incongruous; C.,he~d, most of all at home. Advertising tastes, like ~laciers. rnOvei and no matter how deepb, rrw, red a traJe-mark may be it must bo~ in the direction of the uind. George Washington Hill's spectacular Lucky Strike is four ,,ears yotm~r than Camel. It t~w, is b:~sed cm the blending of Carolina leaf v, ith Tmkish and Bur!ey. With the exception nf a violet ray bath, it receives a treatment practically idemicai to that of Camel. in that }v~ , ent,'~ ofdi~cu.sion and conie~ Sure, lh~" tr~a~zer Now in the fir,~t place it must be pui.qtcd out that the to,"tster, kno~n el~es~bcre as the drier, is universal to the manufacture of cigarettes; in the second place, that the fumes of any I*~hacco drier, u, hether Camel, Chesteriiekt, Old Gold, or Lucky Strike, are maddening to the eye-a, choking to the lungs, and painful to the head --proving, as George Washington Hill ha~ constantly asserted, that irritants arc re- leased from the tobacco leaf by heaG in the third place, v, hile CameI clabns to heat to- bacco in the drier to the uttermost limit and "54" ...... 2:_L .............. r3 "l" :q O "l 0350"i 98
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not burn it, Lucky Strike is equipped x, ith machines to care-,' the heat considerably higher. That the l£uck? Strike heat remoxes more irritants than the Camel heat ~ould seem to depend on whether 31r. Hill has dis- covered some ~,ay of running his tobacco through his drier at a higher temperature than anyone else beliexes it will bear; but in any case, the difference of effect must al- ways remain a quantitative rather than a qualitative one, and the most fundamental difference between the Lucky Strike and the Camel, besides unknown di'fferences in the blends, is that ofthe flavoring matter applied to the tobacco before heating it. The Butler leaf of the Lucky Strike is soaked in a dar~: brown liquid of delicious aroma, containing among other things maple sugar. After this soaked leaf has been mL,~ed in with the Caro- lina and Turkish and all three of them cooked " (i. e., dried) the Lucky Strike flavor emerges as absolutely distinctive, such that Lucky is the easiest cigarette to distinguish in a blind. fold test, and, on the whole, is described by the word "toasted" with clarity and justice. Granting, therefore, that the Camel and the Lucky Strike processes are essentially the same, it would seem that Mr. Hill's advertis- ing has been somewhat more astute in giving it a name. Lucky Strike is e~pecially popular with women and has benefited more than Camel from the increase in feminine con- sumption. The toasted idea must have played a part in this, being much more understand- able to feminine minds than the abstract Camel emphasis on quality. The difference between the Hill advertising and the Rey- nolds advertising can really be summed up in One sentence, Reynolds has relied on attractive and clever ideas which empha- size a quality product, without undertaking to discuss tobacco manufacture; Mr. Hilt has reached into the cigarette itself foe his advertising arguments. The famous "I'd walk a mile for a Camel," the more re- cent "Graduate to Camels" are examples of c ever Camel campaigns about as tar re- moved from tobacco fields as the arerage citizen of the nation is. Contrasted to this Mr. Hill's insistent "It's Toasted" is a simple fact taken from the tobacco factory,; ~dfile the more conglomerate and intricate arguments recently built up around irritants and the violet ray machine attempt the same appeal some~hat less substantially. ~Aith the xiolct ray, .X, lr. Hill has not so much drax~n an ,~r.~llmel~t Ottt of Iris t i~arette, as he has put somethin~ new into it..Just how substatttial this innovation is, is a question open to ex- traordinaO, discussion; at least Mr. Hill's testimonial ad~ertislng has not proved an)' fundamental scientific adxanee..Most of the celebrities ~ho testify for him know no mo~e about the ~iolet ray and tobacco than a celebrity is in the ha;ok of kno~d.ng. Some of them, even, are not smokers. One feels that if the Lucky Strike process as a ~hole eonstl- lutes a simple and lucid scientific advance, better advertising capital could be made ofh. The greatest step so far is the cCIecting nf the toaster fumes into several barrels a week of insecticide by-product; though the ayman THE BURLEY LEAF AND THE BRIGHT The P~rtey leaf it dark brown and is used ch[et3v for pipe tobacco, The wonderful, mild Carolina leaf is gold. Both are important in the famous Camel blend. "55" still wonders whether this could not be accomplished by a mere drier..Neverthe!e_~s the interesting fact is that Mr. ttili is tr~.qng to do something ~ith a cigarette that the Reynolds company has not tried; is making a spectacular effort to shift tobacco advertis- ing to a new, perhaps scientific, ground. .Meanwhile, it is also necessary to note the strength of Chesterfield, issuing forth in their white cartons from the Liggett & Myers plant~ which is just across the way from the American Tobacco Co.*s plant in Durham. Chesterfields are not ordy unlighted by the violet ray; they are not so much as dipped or seasoned with flavoring matter and are in thi~ regard lt~s "manufactured" than either Lucky Strike or Camel. The Chesterfield ap- ~lal is to simplicity. Though Liggett & yers have not exploited this, they have in it a txemendom weapon to use in a sophisti- cated world over which the idea &simplicity must always exert its attraction. It is pre- sumed that Chesterfield is producing some • 6,ono,ooo,ooo cigarettes a year, and it is known that some years ago it was the most spectacular performer. The advertising is not unlike that of Camel, though where Camel has emphasized the abstract notion of "quality," Chesterfield has used the more sensuous "mild, yet the'/satisfy" and the re- cent appeals to "taste." Both these appeal= are justified, since Chesterfield seeks to satisfy with the taste of tobacco alone and without flavors, and it remains for conservative Liggett & Myers to exploit this. In short, the whole tobacco industry, de- pendent as it is on great advertising, wou/d seem to be marking advertifing time. Mr. Hill has been in the front of the stage with an interesting scientific exhibit; Old Gold's effort has not been unqualifiedly successful-- the cough was a good idea, the carload was too much; Chesterfield has failed to recog- nize itself; Camel is at a slight disadvantage in sophisticated circles because there has been no radical step taken in iu advertising since pre-War days. Indeed, Camel has never felt the need for such a step, having so consist- ently led an industry with fabulous pu~ers of expansion. But given some sort of a limk to the nation's consumption of cigarettes--a limit which the t93o figures indicate to have been reacbed temporarily--~hen cigarette manufacturers will dig hard, perhaFs more profoundly, for an a&ertlsing idea, And it is certain that he ",~ho finds the idea ~iil make new historT. Y, leam~hile, Came[ remains t~ie I~l.llk at which e~eqone is shc.~ting; the burden of proof is upon all others. Pending a revolution in cigarette advertisin~ comparable to the revolution that Reynolds cffected in cigar- ette b~end and merc/landizing, one may ex- pect no major reali~nment~ of the warring factiom, President Bo~man Gray in effect denies that a war exists. To the imNied Lucky ~.mke threat, he ansx~ers crisply: "Camels will not be disconcerted by the advance of a competitor so long as advertis ..... ing is mainly responsible for it; but when a cigarette moves up without a maximum of advertising we will take serious notice." /i::!~i:~iiiii!i!i!iii!ii!i~iiii:i:~ ,~
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~ =-71 "RUNNING SLAG" Above is a Roderick D. Mackenzie pastel (see page 6o) showing the lower part of a blast furnace in the Tennessee Coal, Iron & Railroad Company's Ensley steel works. Mohen slag is being run out from the furnace into a ladle which will take it to granulating pits or slag dumps. Inside the high blast furnace, layers of iron ore, coke, and limestone have slowly been melting down under the intense heat. The ore, cleansed by limestone and melted by burning coke, has trickled through a mass of slag--residue of ore, coke, and limestone--to the hearth at the bottom of the furnace. Slag, which floats on top of the pool of melted iron, is drawn off at half-hour intervals. Once slag was a waste and an encumbrance. Now it ~ elds valuable by-products, most important of which high-grade Portland cement. "BLAST FURNACE STOVES" Opposite are the four blast furnace stoves which feed the furnace ~ith heated air. The stoves are too feet high, 2o feet in diameter, and are lined with check- ered brickwork. Gas from the blast filrnace roars into the stoves until the interior brickwork is heated to temperatures of from 1,2oo to t,4oo degrees Fahrenheit. Then, the gas having been shut off, refrigerated and dried air is forced through the stoves, absorbs heat from the bricks, and blows in through d~e bottum of the blast furnace, heating the coke to a temperature of more than 3,500 degrees. .-ks Artist Mackenzie drew this picture, molten iron was being drawn off from the blast furnace (at the right) and poured into a ladle. The ladle carries it to the pig machine, where it is cooled, or to a steel con~ verter, where it is made directly into steel. > • 56• k. R T ',,',',O 1 0350200
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$5 7,°°o,o°o Worth of Whizz and Whoozle Not even Clay Williams of Reynolds knows just what it is. But he and Adman Esty both know it was the thing that whooped Camels' sales up to 45,5o0,0o0,000 last year. ! I I i' ,I Y S CLAY WILLIAMS, Chairman of the dismiss the war that for a decade shook the • Board of the R. J. Reynolds Tobacco cigarette world. Camels are out in front Co., is a spot heavier now than when he again, and have been since 1935. Last year ,layM guard on a crack University of Vir- the company sold an all-time record num- *gSnia football team about thirty years ago. ber of 45,5oo,ooo,ooo cigarettes, or about 28 But he is still a fine figure of a n~n, stand- per cent of the total atnmal U.S. consump- jng six feet, two inches tall. and weighing tion of nearly ifiS,OOO,OOO,ooo. Lucky about 2 to pounds. At his desk he is a genial Strikes are back in second place, with sales and unruffled conversationalist. So much so, of about 38.5oo,ooo,ooo; and Chesterfields in fact, that a caller is apt to get the ira- in third place, with about 37.ooo,ooo.o0o. pre~.~ion that Reynolds just runs itself and To hear Mr. Williams tell it, one might Mr, Williams is without a care or a worry, drink that he and Mr. George Washington The impression is an illusion, supported by Hill of American Tobacco Co. had just a ~iew. From Mr. Williams's ot~ce in the had a friendly brush on a bridle path. No Reynohts sky-~.cT'aper at Winston.Salem, one hint from him of the way Mr, Hill rough- can take in a big slice of North Carolina. housed Luckies into the lead in t9~9. and Beyond the tight nexm of the city, in which left Camels far behind. Nor of how Liggett are interwoven the fifty-odd Reynolds fac- & Myers' well-mannered filly, Chesterfields. tories, the stranger marks the peaceful roll of the Piedmont country, cupping fields of tobacco, The city is fitly part of its setting. 1 t even smells right. Night and day it exudes the sweet, pervasive fragrance of tobacco, as does Mr. Williams,/aindy. it is a fragrance that every Winston-Salemite swears he can i:o '-,nger smell; except that when he is de- prived of it the air he breathes will seem intolerably flat, and on conting home from a trip the first deep breath of Winston- Salem air seems to set him up right aleay. So it is all pretty tranquil. And Mr, Williams, standing at the win. dow and talking about the tobacco business in a soft southern way, sounds pretty tranquil too, "There is IIO nDstery to the cigarette busi- ness," he declares. To him it is iust a horse race. Any horse may look bad for a momet~t or two be- cause positions change fast on the tiack. But the horse that can still come charging down the home- stretch out in front after it has had the lead and lost it, "that horse," Mr. Williams maintailts, "'is a mighty good horse." The "horn" in this case being Camel cigarettes, which last year accounted for an estimated 83 per cent of Reynolds' $303,o00,000 in sales, and about 76 F.er cent of the $27,6oo,ooo profit. "Now it is true," Mr. XVil. liams goes on, "that our horse did get boxed off hack there a way, and had to do some powerful running. But that was all right, We knew what our horse could do." Thus simply does Clay Williams shot past Camels in t933, and in 19M raced Luckies to a photo finish. Nor of the tattoo from the oncoming ten-center~ like Wing~ and Twenty Grand. All this belongs to the past, and the past never detains a tobacco man. On this, Camels' twenty-fifth anniver- sary, Mr. Williams can continue to advertise them as "the largest-selling cigarette"; can flatter himself that the $57,000,000 he has spent advertising his famous product in the past five years has been money well spent. EACH DAY 17fi,ooo,ooo CA~,fELS GO FORTH ~5 Yet what actually happened deserves a much better analogy than Mr. Williams'a horse race, It involved perhaps the bitterest commercial competition of the past decade. The stake was dominance in one of the few great industries that are practically de- pression-proof. (Even when times were worst, U.S. cigarette consumption was only t3 per cent.pff the previous high.) The weapons were words--worda hammered into slogans, welded into sales plugs, $3oo,ooo,- non worth of them poured into newspapers, magazines, and the radio, plus milh'ous of dollars' worth more plastered on the bill- boards. When words/ailed, there could be-- and was-resort to what by tobacco men's standards is the most dastardly weapon of all: price cutting. Considering that the war- ring giants were almost equally balanced to resources, the outcome of price cutting was virtually predestined. The Big Three-- Camels, Luckies, and Chesterfields--are back to their former parities. They have [allen into a tripartite equilibrium which none of them is apparently able to d~troy to its own Permanent advantage, but which all three independendy appear able to de- fend adequately against an)" threat from the small fry striving desperately to upset it. As P. Lord"lard, for example, discovered with Old Golds, That twelve-year-old c.lgarette, for all the ballyhoo whammed behind it, has Failed to cro~ the 8,non.non,non mark. Philip Morris & Co.. Ltd.. Inc,, with iu five-year-old fifteen. center namesake, has just broken past that level; but while PItilip Morris is indubitably the fastest- growing eigzrerte in the U.S. today (up 47 per cent the last fiscal year) it will have to throw more weight around before the present equilib- rium is unsettled. As for the ten- centers, they have faded back into the far distance from which they so spectacularly sprang. Where tJ~ev had from ~o to s5 per cent of the mid-depression consumption, they now have about tO Per cent, al- though as the current recession deepens, they are twitchi~g for- ward again. Nevertheless the Big Three to- bacco companies are not nearly so invulnerable as these facts appear to show. U.S. consumption has increa.~d 67 per cent since t9~7, but meanwhile their share of the R T ,',qO I 035;02 O 7
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d P~tor"~s 1~ r~rlmxJ ~ O-.J Hlld THE F..STY TECHNIQUE IS ONE CONFERENCE (MEDIA) ...... AFTER ANOTHER (HERE A RADIO AUDITION) total market has steadily diminished. Then the Bi~ Three among them had 98 per cent o[ the total U.S. cigarette business; now they have only 74 per cent. Since 1931 profits have shrunk-by some 29 per cent for the group as a whole and by 24 per cent for Reynolds individually. But the stock- holders might never have had reason to suspect that fact. Reynolds, like the other*, has been good to its stockholders, who number 58,ooo. Right up to last year, when the dividend dropped to $~.85, the company had maintained the regular $3 rate, even though it hadn't been earned since 1932, This was done by taking $z5,ooo,ooo out of surplus and adding tile sum to the approximately $]24,- ooo,ooo that Reynolds earned meanwhile. In consequence the surplus has dropped from $66,000,000 to less than $4 i,ooo,ooo. Appreciating that it can't last forever at this rate, President James A. Gray has taken steps toward putting Reynolds on an actual earning basis, Commencing in t939, stock- holders will be paid four quarterly interim dividends of sixty cents each, and on top of that a final divvy of the excess, if any, as st~on as the Directors can estimate it. Otherwise Mr. Gray has little to worry about. The company has the largest inven- tory in its history: $ ] 38,~oo,ooo worth, near- ly all of which it tobacco bundled up in a three-year sleep. Its assets stand at $s80~- 7oo,ooo; and apart from .~z4,5oo,ooo its bank loans, borrowed to help finance ]a~ ";,'ear's tobacco purchases and now being ~d off rapidly from sales, Reynolds has no debts. Unlike American Tobacco and Lig- gett g: Myers, it has no obligations before the common: its capitalization of $ t oo,ooo,- oco, represented by ]o,ooo,ooo shares of Class A (voting) and B common, is the smallest in the Big Three. "~A[ITH a firm financial structure under ¥ ¥ them, lower leaf prices in prospect for the fall, and even with Camels' sales rum ning under last year's, Mr. William~ ~tfid his President both think that "we're in for a good year." A big spurt in Prince Albert, which with six other lesser knox*'n. pipe tobaccos (among them George ~,Va~ ington) yields all esti]ilated lo per cent of his total sales volume, has been heart-warm- ing. The two-ounce tins are pouring out of the factory at the rate of t.ooo.ooo a day; and Prince Albert is. and long ]l~ts been, the nation's largest se}ling pipe tobacco, What little it has lost to chea~er brands (like its ten-cent mate George xA ashthgton) VHIZZ 'N WHOOZLE ('$3) HEALTHY NERVES ('~i$) GET A LIFT ('34) DIGESTION S SAKE (36) i i ii CHEST THIJMPING ('37) -. f~ i 26 T;.',;O I 0350202
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rb*toSr,P& I-- I~4n~us t7 M,u,r-FTut~ ~:.l~r THE STEM.',IERS, OF WHOM REYNOLDS E,',IPI.O','S ...,.tw,,::,--THEY STRIP THE TOBACCO LILVVES FROM THE STEMS 24 -5 R 7",',fro I 03 502 03
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THE COPY~,VKITERS ALSO HAVE CONFERENCES, BUT ...... DECISIONS ABIDE WITH THE PLANNING BOARD has been more than made up by roll-your- , own recruits who can't afford cigarettes in hard times. Chewing tobacco, of which Reynolds markets about 33.000.0oo pounds a year under lOO different brands, continues to wane. The hundred brands together probably do not contribute more than 7 per cent to sales. "But that doesn't worry us," Sir. Williams says. "The man who has stopped chevdng has become a cigarette smoker." The cigarette is the product that means most to Mr. Williams; and in re- cent years it has given him much to think about. Mr. Hill heaves a brick SEVERAL yeals ago Camels were up- parently [aillog through the cigarette business. Lucky Strike, whooped up by George Washington Hill. had hit the com- pany on the flank, and the invulnerability with which Re';,'nolds had been endowed by its worsbipers had been proved a fiction. Camels, for more than a decade the nation's No. ~ smoke, dropped resoundingly--from forty-two billion clb~arettes in t928 to thirty- two billion in 19:,4, and this in spite of the WHAT THE CONFERENCES YIEL1), THE "CtlIEFS'" DELIBERATE Here. lost m thought, are the four headliners of dlarge of copywriters, has the debated photo,graph R. J. Reynolds Tobacco Co.'s advertising agenc~ be ,.,eert h~s feet. Esty likes to ha~e la,,out~ spread 1.Villiam Estv g: Co., one o[ the world's six biggest, out on the tloor this '.ray. alld he and Jinlmv yate't The man wlttl fist to his jaw ii William Cole tAtv Ket right down on their h;mtI~ and knet's to deal him~elL who usually lookslike this when he is think- with them. Practitioner~ o~ Estv preachmenls, these ing hard. Next to him. wielding the ruler, is h& good men all smoke Camels, As weI1 they might, the Cam, Irtend and brilliant art director. Jatllel s. Tale~. el account in 1937 totatin~ $14.c.~),o~1 And a|ter- Frank Ste henson, another aft director. ~11~ ~- noon tea has bcct~lne an otlicc cu~tl~lll e~er since the C.~MELS OFF? ('38) JOVIAL "P. A." bind the ~atting board, and Gerald H. Carson, in agency took over the Tea Bureau. Inc. account. 27 RI;401 0350204.
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fact that right up to that year the industry as a whole had set one new production record after another, in the same period Luckies' sales shot from twenty-eight billion cigarettes to about forty-fix billion. By *932 Camels, at 22,5oo,ooo,ooo cigarettes, were selling barely faster than Chesterfields and at the rate of two cigarettes plus to Luckies' nearly four.And the word went around that. with worse to come, Camels--and therefore Reynolds--were at last on the toboggan. Actually nothing had e.],,angrd at the company's core: Reynolds was still the great corporation that Fox'ruNg first described in January, t95t: a massive, well-knit ag- gregation whose factories crammed Win- ston-Salem almost to bursting, whose nearly threescore warehouses were posted from one end of the tobacco belt to the other, whose one hundred buyers stalked the tobacco auctions with a lordly confidence, and whose thousand salesmen were serving a distribu- tion system automatic in its simplicity. So far as the most critical eye could tell. nothing that the Reynolds management had done--or, for that matter, failed to do--was bringing this grief about their heads. Prob- ably no mart in the industry knew as much about tobacco as did wise old W. N. (Mr. Will) Reynolds. brother of Founder R, J. P.eynotds, who had guided the company since his brother's death in t9~8. The late Bowman Gray, then President, had literally grown up in tobacco merchandising. /Sir. Williams, then a Vice President, was al- ready tagged by the knowing as the man to watch in the industry. And as for the cigarette, it was exactly the same cigarette--the same blend of flue- cured, burley, Turkish, and Maryland to- baccos that Founder "K. J." had invented in 19t3. This was what made Camels" decline so mystifying to onlookers unfamiliar with the occult workings of the simple cigarette. For meanwhile nothing so revolutionary had taken place in ira technology as to give any one brand an advantage equivalent, say, to that which the high-compremion motor gave Chrysler over other motorcars. Tobac- co is a growing thing. In the a*ay it sleeps in LIL~,F PROCESSING: MR. H. S. STOKES i I! THE TWELVE DIRECTORS OF REYNOLDS ARE ALL ACTIVE OFFICERS OR DEPARTMENT HE~DS Z8
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huge hogsheads on tile warehouse floor, and in the way it is blended in the factories, the preparation is of a piece with the unchang- ing, reverently perpetuated chemistry of wine*. Where secrecy exists is in the process- ing: the nature of the sirupy hath with which the burley is sprayed; the character of the sweeteners (whether honey, maple sugar, or something else again); and the flavoring (whether rum, sherry, angelica, or other essences) with which the blend is doused after the tobaccos have been tumbled together, Even so, the differences thus imparted are so slight that most smokers cannot truthfully distinguish one popular brand from another. Knowing this, the rulers of Reynolds were not long in estimating what was wrong with Camels. The fault lay not in the cigarette, but in what they were saying--or rather neglecting to say--about it. F RONt the day "R. J." concocted the blend, the company had had but one thing to my about Camels: that they were made from the "best quality tobaccos." "If you pay out money for the best tobaccos, isn't that the best advertising you can get?" "R. J." used to ask, belligerently, Or: "There's no better advertising than what's right there in the product." That gospel ob- sesses Reynolds men almost to the point of fanaticism. You can see it working in the shrewd, florid face of Mr. Will Reynolds. when he picks up a "hand" of tobacco and strokes it for texture, smelL* it for fragrance, and looks at it for color. The same rever- ence filIs Vice President J. ~,v. Glenn, head of the leaf department, as he maneuvers his buyers in the tobacco auctions; attd Vice President R. E. Lasater (manufactur- ing) as he watches a golden trickle snatched from a hopper fall through his fingers; and the blenders as they fuss with the lighting in the blending rooms. Elsewhere you will be told that the popu- lar brands of cigarettes are pretty much alike; that they do not differ essentially as to the quality of tobacco used, But a Reynolds mall would as soon ~i~e the lie to his mother as admit such a thing. Now the "reading" of tobacco is as much a sen- sual instinct as it is logical. Not even Mr. Will can tell you what makes him linger over a basket on the auctiott floor that a bu~,er for American Tobacco has passed by; nor why the other man will bid for a basket that he has ignored; nor why both of them, so far apart before, will duel fiercely over the third basket, although to a government grader all three baskets rate the same grade. It is true, also, that with tobacco men the unforgixable sin is to let a rival buyer get off with an easy price. XVbo buxs the best tobaccos is past the outsider's proving, but this much is true: that the men who work for Reynolds have made a religion of the conviction that they do. From this rock of faith, N. W. Ayer for almost twenty years mined advertising slo- gain for Reynolds. By up-to-date standard*, BOARD CHAIRMAN: S, (FOR SA.MUEL) CLAY WILLIAMS Twenty-one }'ears of Clay ~Villiams's fifty-tour Founder R. J~ Reynolds asked him to come to have been pasr, ed in the P.eynotds mr~ice, eight of "eVanston.Salem in lgl7, ~Villiams wa~ doubthtl he'd them an la,~,~,'er, six as Vice President, four as Presl- be happy away from the law. ~ondered whether to dent and Vice Chairman of the Board. and three in give tip his home in Gt eensL~,ro. His old friend his p~t job. Born in the North Carolina Pied- Colonel Morehead modified: '"~rhen a po~um mont cottntr% he was a Phi Beta Kappa at David:,on mo~'es from one limb to another, he ne~er un- College arid a fine football player at the Uni~crsttr ~TOI~ his tail from the first limb till all four feet are of Virginia. His team nearly tirol the great 19o6 Ca~- firtl~y planted on the next. Young man, consider lisle Indiana (storm 17-18), and the game sdll livel the possum." Clay Williams took heed, but his cau- vividly in Mr. t, Villiarm's memory. "The? were the tion wu unnecessary. His Reynolds earning~, cOUnt- sic.ks:st redskins you ever saw," he recatils. Wtlen ing profit sharing, are close to $175,ooo a year. ~9 1" :,40 "1 03 502 06
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i they were innocuous stuff. Phrases like: "No Better Cigarette Can Be Made." And: "The Camels are Coming." Beyond that nothing much but sweet and pointless talk of the pleasures of smoking-the traditional language of tobacco men. But it worked. Then, as FoR'rust described in Decem- ber, 1936, George Washington Hill burst upon this innocence with his exhortations to smoke Luckies for "Your Throat Pro- tection." for keeping slender, for avoid- ing "Sheep-Dip Base." and because "It's Toasted." The adman's name for this kind of copy is "rea.son why." Albert D. hlsker of Lord 8: Thomas, who promoted it, had reached into the cigarette itself for some- thing different to say. In five years--1927 to 193 t--Luckies' sales shot from 22 per cent to more than 4° per cent of the industry total. while Camels' sales were receding from 45 per cent to 28 per cent. M~tu" WILL and Bowman Gray were dis- rbed. And mad. too. Indeed the entire industry was in an uproar over the way Mr. Hill had arrogated to Luckies the exclusive virtue* of heat treatment, which they all practiced one way or another, and by imphcation investing other cigarettes with those "harmful irritants" expelled from Luckies. In self-defense Reynolds resolved to deal. as an executive recalls, "one sledge-hammer blow." In March, 1930, the company issued $30o,0oo worth o! full-page newspaper ad- vertisements entitled "Turning the light of Trnth on Mse and misleading statements in recent cigarette advertising." The out- burst may have relieved the resentment in Re;,lmids' corporate soul. but it did not disturb Mr. Hill. He is supposed to have remarked, "If you throw a stone into a ~ack of dogs, you can tell which one is hit }~ the way he barks." The Reynolds blast did not arrest Camels' decline. (In fact it was not directly intended to do so.) Neither did a breakup of the historic alliance with N. ~,V. Ayer and a shift to the younger firm of Erwin, Wasey & Co., Inc. that same year. Nor did Reynolds' dramatic in- troduction of the Cellophane pack in 1931, ahhough the bulk of a $1o,ooo,ooo advertis. ing appropriation was thrown beltind it. Meanwhile that year Mr. Will, approach- ing seven ty, decided it was time for younger men to take command. Fie withdrew to the executive (policy) committee and his trot- ting horses. Mr. Gray, who w~ to die of heart trouble in the mid+Atlantic four years later, moved into the Board chairmanship, and Mr. Williams into the presidency. A trial lawyer who had turned to corporation law, Mr. Williams had been Reynolds' gen- eral counsel since 192z. The new head men so~)ii C;lllle to the conclusion that since ad- vertising was then doing Camels little good, they had best restrict it. The stranger at the door IN 193-° the appropriation for newspaper and magazine space, and radio time. was slashed from $9,ooo.ooo to less than S5,ooo,- ooo. For eight months Camels tried to live on a declining echo. It was thin nourish- meat. The whole industry was off in 193~, but Camels, selling only zo..5oo.ooo.ooo cig- arettes, were off 3° per cent from the previ- ous year, while Luckies were off only t7 per cent, and Chesterfields, humming a laven- der and-old-lace melody of "mildness." lost only lo per cent. The Reynolds manage- sent, even then able to earn $33,7oo,00o, could accept the situation with mastiff- cent aplmno. "Camels," Mr. Bowman Gray had announced in measured tones, "'will not be disconcerted by the advance of a com- petitor so long as advertising is mainly re- sponsible for it." Ever'!lxxzlv, after all, could play the advertising game. Slowly, care- filly, Reynolds' head men were manning the advertising world for a technique com- petent to do for Camels what they Believed Camels deserved. What they fished out. fin- ally, was something called--though they did not know it by that name-the old "wbir.z and whoozle." Whizz and whoozle was no concoction of Mr. Williams's. The shot was administered by Mr. William Cole Esty, a New York advertising man. Just what the prime con- stituents of whizz and whootle are not even Mr. Eaty can say; but from his airy defmi+ tion it seems to be the whatever-it-takes in an advertising plug. The thing with power to transform wheel horses into sprln" term, hoarders into spendthrifts, and sales curves into rockets. Mr. Williams. his mind turned. to the restrained language of the law, stand.~ in horror at the phrase. Bnt he and Mr. Gray both recognized the "horscpower" in the Esty copy. A dark, intense man, Bill Esty comes from a long New England line of minister's, lawyers, and professors. His grandfather father were both college professors, the former of mathematics and astronomy at Amherst, the latter of electrical engineering at Lehigh. Bill hintsell went to Amherst, but quit m 1915 after three years, "the first Esty," he observes. "'ever to miss Phi Beta Kappa." His first job was soliciting ads for the New York Times in the cloak and suit trade. For a while he worked on a motion picture magazine in Chicago. He was a machine gunner during the x.Var. Afterwards he became advertising manager oI the A.E+F.'s official newspaper, the Stars and Stripes, continued in this country a.~ the Home Sector. Then Esty drifted in and out of a couple of advertising agencies, both now defunct. In 19~5 he went with J. Waher Thompson, where he was put ~n charge of the l.ux accmmt. Esty coined '+Undie Odor," an early classic of the hard-boiled school of copy+ writing. He inxeoted what might be talk+eL the "mass movie testimonial." More than 6o0 movie stars, including practically every [Continued on p'age 96] w oa+ H+it++ /~n,#..+,nam. II~+,, TWO REYNOLDS OUTLETS AMONG 8oo, ooo: MANHATTAN (LEFT) AND WALKERTOWN, NORTH CAROLINA 3O fqT:,ffO'l 0350~ OP
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Cl,..,,.e* L rdsl IN THESE HOGSHEADS. HOLDING UP TO t.ooo POUNDS EACH. TOBACCO TAKES A THREE YL~R SLEEP iiii i ii~ f9 7","~0 "I 03 502 08
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distxr.cd t+n+a.t the raihoad; he always T"l l_ T~ * 1 1 then. at:.out raibnad ~l.lAems generally.7" it ,+l.,,l+,-~+,~,he ,,,,,¢ w,,e,, b0 ,,~,,,<,, ,,, a,l<l+~ J0aoy l~allr0acl ++<,,,m b~. ,l:,,,g ........ +.,~ee,l ,~ ~3~ ,~ ~l+Jt~ to his~:%:ohou',c and lhome lent him a .......... muth: and IJlat little will.axiom;it W+ brad of tics f<,l"'¢tibi~ng, l[e ~ells milk to Continued p..t page 0/] a raih,mdman. 1h¢ b~g. of court'+ 'i~,~ S elfie < and he bins ~ ~mm Rio/er I>~ ..... gtqtirlg rid o[ the~l~2rd dvat~es..4.m ra b~ad big slu ~ )ers. But 'tT~ hie ,'lls,,~+..s a fertd]zer w,~uid be ha~l~- with,mr dlo.e. But tf. I'~'~¢~tld f*om bis hendto qfinKseallcd Pe ~t+~fi'+~vbith a smve~or's fee: file gasoline will (.me in lye' thai. ll~t, 7('C+ is g,)in~ t,, make a lint+ m,~ne'v hc ~dIs to falmels, tl0tisls, and ¢ount~'~v.bs ,tail and total illal, b~ fifp. new ~aHoads a )t, al. ;~*t, the milade will be at least lmrtlv a~- alt tlu,,ugh that i)alt of the state. So him ~-l~e church at I~.conards~ille isn't exa(tly .a.~tdbable to new bhx:d. There is not mtl¢l~.ifear Snei~sOll is tQing to interest the Pa~ C~m- sB~,~, but when tbe vestrymen t~a~'l t. that the iit:w ownels of the U.V. wilt w-~n,c to nlissioll bl it down in New Yark C~t'hat mo~e ]~-~alion, Roy Reiden~got the disnlantle it soon. espetlails sinre tl~e ][CC. way not onl~ nta'~ IlIole PC )toliter~ to~o'o'o'o'o'o'o'o~ in ;Ind h~ some ties wllidl ba~ to a[~ ,line all al)ahdonc+lem* i~tb- ralis but Ardfie's eggs, hldwit,, pard~r 'ust~ndly. As Hr)watd ahI', ',~ouldn't let thenr. After all tile l)ei:.i~nL, oI" au' tmw all wring b', ex[nesv ' C~lits l~, '~e~e the public thc~allc) nt'ud Ihcil slmlt line. It is s~m'~etiale~ p~ctty gl~ Hc is~L.ncw to tbc tim Olll~ i,Jutc to the ls'~lhl ~hcn their bitte~" TflEN the~e N Mm~in Wiltiam~mqng wo~ked"%~-4Ztdon snows pa~k N. Y. S; it is sdll the l~_st veliide J. Be~lin Chevrolet dealer: he not~~ lie spent a ~ ][m their lhollx-bound Illilk; il still Ic~l~ ~tile line t,) Rm Reidenbath and brin~ to Blldgewatcr tt at in~ ~ their tax lists and in their nadve I,trid~ ~t! ears in b~ tall fi-m ButTal,~ instead-~h]~'l 'ud~ Flo'~d Wil- it s~l~oms large, svmb,~licall~ at le:t~t; ~ a cL el take Ricber's feed stoic. ~~cs dealer, was g,~ing t,i feeder to~i~l.~Q. ~ \V.'and dur [.a~ kawam+:~ and old~st tuqonlels, whith isj,kwtr~~~ ~ t~u night, II-w,ud the S~. mtbem ;ll~'~liOll l',icllit at]tl 5a]ita iv. inl,i tile ~asoIine busir!.u.m"TT] ct)nlpctitiotl with finalh hl(ated tile film ust in time, and Sil]te Mlippci~ :uc r~,~t xt'l~"~l~nlhll~:ltal, aLul lJlele It' S andard Oil~'~t on the O. ~ ~ll,". tlacks, then Mr. "Wilbur has blolight ill a flagp, de ate stlOll~er alld ll<i['~iez a'~r't'lti.tClib ;t~;tilt~,t til(? .ML Lami~¢'qlapl)erls t,~ IK. able to use a and re;me Ihahs by ex )tess t'~l. tiulks than litcxc, l!au what som~,~l'oad ctts- tran~i,l~-.,¢l'T he ha<, been hel )lag tile Richer That's the way the buslnes~, {Otll('s Oil tile IttTIIt'l~ nuud. :1~ IIw Utladilla's igt-'+¢ ow'l'ly~al'e .blli~l" 1;1~ out tile st,>tage tatlk, sa~ing tilt'ill I.Yllat Ilkt "(a ey Ra wa',. X'~ hat doc~ I inmc, lindm~; mm is mo~t of all to be remi~d~~' tille o{ COll~¢lll.tttltp. "~cle .i~lled up and dc]i~c~ed cn ln:i~sc t<l l.ux. IA'ith Iht:',e ~.u~- tc~c~ behind hiln+ only thirt~ eiRhl and t'aln. ing $85a~>o a ~ear. Est', suddenly tited ,ff wotk- Est'~ ]lad c.H~,t~.~ in tile bank. lie figured t}li~ ~,ltlltl ,alt~ the <~xe~hcad ,+[ his own bttsi- IiC~.+ [t~t t>lll~ ,Jilt. ~Cdl, 1+~1 Jtc lla(l I)iK plallS [llX~t'ad i~l ~taltil>., ~tl a ~,lll:llt ~ale lie nlo~ed Ids ~tal[ i/lie) a t)i~ ,dt'lt e alld Wellt gtll~tliDg fair Ilil4 ate+milts ~h211 h(I kr)iq%' [11 I)(~ either shl;ppilag f,. new a~cndcs. ,It eNc .!ipl~in~ so badl~ :is i,, he in the m,~t f+,i {]a:ll~/" F,+ttt IIl~lT~lll~ al~el staitill~ ,~ }~is ,,wtl, +C~/lli:tln Est~ ple- ,ellt~'d [ltill~('i~. UtliTI'~llU+L ;it \Vitlnlt~it-Salt'tll e a tlot~i~itu]lx~cttill~intosc'ctbcsah's l~lalla~(iir tilt lalt Carl H;ittlS ~hc w~mid st'c almr~st art~one:: but Nil. Williams. who hap- ilclltd ~<) ildll the intc~sicw, adluolli~ht'd him: "l Tll ~<llt'~. bLll ~xclt> i~lll illakill~ a11% (]I;ITI~(' irt .ul a~c:l~', ~,mll*~ti,m " Eqx. h,;l~'xet, did II<ll let'[ ]C])tl['td. Fit: it:It will1 tlw Ilcat ira- at Ica~t ill it. adxctti~ing ;iLta~k: Ih;It in~tead of in(uc "~i¢,[=t,]latllrll,>r .rl,,k,,¢" tx~llit]l had ~clxud a .[.¢;hc panEm.~ it ~,la~ gl*)tlilll~ Icll Xlllllt. lJlil]'I t:l A [j,diq(. C~t.H [ll~rtJ,~tln xCill> Tiff, ~aw h;m .~ .~,,tkn<., ulta. Sardini. ,he t Ltn,lcuff I'~il]g BII..L ESl "~ ha, ah, a~, bccn regarded b, his [i,l~ a ])i~ !!ilal~ ,~rl ;ihn+~ll~l.l[ tl~tilt,lt,:4~. (lil~liM,ll,14~..lad .cx, 3lid he ii.et] to [lall~ al~,Uiid ]~H-+,/ n atilt ilI.;H~c ,Is%ltllllS t)Ct;lll~e. hey .aid. "ihc bc.I '.~a~ t,)llndeiSlalI~l allc lll~s~ 1Tllrl(i iS 1~1 .I.(. j[ AI i(S ~X4)IS[,' ~1"C31~ ;l~t) hc liked I,+ ~,~ to C~lnt,'~ NlamL l~hcltt Ill: x~ouhl l)t~l~lladt' till2 ~lal kct t,~ .Itp d,~x~n and let ]~TIt *itli~cl thc -pid. iu~ t,~ p~o~c t,, ]lilll~cll tltat he cl~u[d ildI;tllI~llt~ a ~11/111~L~ Clot~d inlo doing his bidding. But i,m4 bch.e lie dc~eioF'ed tb+~se atlu]t p1*zIKcullations, hc had been .bI ~'~(~l by the illxsletic~ ol stak, e lllaglc: ;tt ,re, sdu~l tic had been kntmn ;is "Safdin . tile Handful[ Kin~." ~lnd tllll o{ that mu+kx batk- ~i-Otllld faille the idea f,>l his (eh,brated "It's FLIrt (i) bt- l-~dt~l'" laID )ai~n. +lime ~fl)ject o[ x~hil h was to 1 idit ulc l.tu kieC p.,eudo-sc cntll c 96 R.J. Reynolds [C<mlirtued po,n p,,g,. 3"] ad~eltisim4 of its I+~asdn~ p~occss N,. in s+~ tn;lllx x~t~t<ls, o[ ~uisc. 1 he adxel~i~Ctlltllts wI)~lld nlelel~ show ht)w a llla~i(ian (rltll(I ~;IW a l~lJlilglll ill llaIf, elide)% bet l~ilh three hcads, arld 11111 bCl iI11(>tl~ll ~,itll a sl~tlll; lh~-ll thl. text ~w~tlld lllliila~k tilt. dc(epllUll oil x~ili(h tlw~e and lJke tri(k~ ~('le ba~(cL .%. it~ })liultl latls on I.batt,, ~,ill~ iI~< ,,ld lit(Hie r~[ % ualilxI' toba([,,s .[it,:il~l]illc(I t,) tu;~tl '+tont- icl I~ ~( LI~[. 1hi* TIt,iI t' -i~ bt't ause E.tx 1, ;ix xhl ~ l~d elll~Ugil 11> qls]W~l tb;ii Re~l]~l]tls ~,)uhl ~w:l- ¢ OlllC H thitl~tC t,i ~-x c-~l IIw ~<tHtI a~;lillSl Eb 1 ~S ~hiistci ~ldpal,iliOtlS l~¢Ilt' kLllkllo%ll U~ lhc k~t'lll]CIIIt'll LI[ II ilIMIIll %.l[~'lll il+,%~ e~er. l~l,lcud, wIlt'll lie. tiI1])id([~ n, [~lt ~'lilt d tl~c lii xt exist l {nit:ilia] !;l~ out. tilt" I C~p'~il~t: X~ ;l~ Itl.I ~11+~1t ~ll (]lil]ln~ I !ti, dtdcl I TlltLili ;llltthillg, I 11( JII.I;IM~ [te .aw tile ',l.~ic ,aml,a,~n MI. William~ lt-ali/e~d that "tbi> i> tilt' Ik".'ht tl>tl<]/ Itc bu'II ~t';lllhlit~ [oi~" alld the in.i~i+,d ~h;tt;/ll~ Ilil l>t Ih(' 4 ~qi[f'l-D d);i( t lJ t hvlll~ lil;ll~t' ++th [tt'l ii~ilt el( Ill,tile ~hcre wc ])* i4)llr.'t;d.> l~nol;llll in ttll~l ,d IhC C1~lhu~ia.ul alou,td hi die Rc~n~i]d~ hiTh (~tllllil;llld. E-I~ i~ii/ lillucd i(~ ~la~¢* o~er hi. b,ain <ilitd i11 X]cw \,,lk. In N'oxcnlbct tic I, as ;t~kcd. ,.ith,>ut Wall~ill,~, I+~ ~clltl ;ill ~d ill, nlalcliaI I } D, itl~tUll. ~.1]c111, Isut ii,ii tel tl)lil~: iron.ell. IX,,s ~,cnt h, ~v/1]l<tUl his healin~ a i~l,ld. "[ iit'il Halli~ tdc- ph,mcd Ihat MI. \Vil[laln~ walll(,d tl) ~I'C hilll. Ihat is the real stoix a~ il ]ialq>CJICd. tlttt ;,ai (all ~till he;it" itx ad~'iti-in~ lilt]ts .i bioill[l/il It~t'II*t <fl il<l%~ [~L) moped ililtl~itilt:d [<*l t[;l~t in the Rc~ll~lllls i<~llidot, with a gloat t)tliidle el l;i~ (ILIt'~ Ullt[t,r h i~ allli; llo~i" a porter, takitlg pit;.llllidtll ted h illi I~lidly into a i'l~llll whci e ihc t)iletl~lts wl~ie niectilll: the dlamalie x~a) Iht! ~ll.qll~¢~r to~s~l hi~ bundle !)11 Ihe i, Oli- felt.ate lal)[c and iiepatte(l: and finally how the d(ior %%'~% o ~.ll(.d. ih¢ wt~rd ailnOUllted. and E~t~ [a 1lie( [ i.:ld allil%. .\~ ~t'll hc illiTbl ]t;l~e thtlle, at that. }'ill" l~s,e~i,)ll ,ff the RCXTl+~[d~ atq~uv~t a]c~Irle (wlmb al~o inrluded Plill~c .kll~:tt} was the inaking of Wil i Esl~ & C.. -\t tl'~¢ (ull t5 pci c('nt llllillllls~i+til I!1t tile ~63,1~te).~ WOrth of ad~ crtisiml {cot]rltilt~ Pl {n( c Albert} that he tla<, handlvd tel his ~t),*n~*,t, llill E~t~'~ Irq*~ mCl fi~e ~ea; ~ wotild {lit;iI !Ill_. ~iKztlltie ~tit'¢ rif ~q.~lll).tltlo. Oh% iou~I), Bill E.~ has dotle ll-ell+ Ills ~('11(%i hottscd clcRatit~ lili East Forl.. ~¢(ontl ~lt~t't, laTlkS ;till<mk~ th~ ~oth;l't hail illltt, n bit gt'Sl ,+ \%'h[/z 3lid ~<l,,,,,Ac appIic-d Ii~ ~'nl]iti~iasnl i~ kmdle,t i>~ the Magic Caltl- ilai<411. I(cxli,il~i~ llni, i~l lttJtcd i ~, alivt, ili+~- ill~ h, llSt'p, lWel" in 193~i s|mlldiilg ~12.ooILolilL Ii nla~ liter ~('Clll il~l[,!c~,it<, i]~£!1 t_31t1~)I$ Ilia[ ~c;11 addc,d rmlx u-arli~Ii~l~fiI()Iil) I)F ii ~ (~llt [O ";L] Cq. ', []ilC ( hC RIL I i]e{ds ~'cre ' addh+~ 7,+!Ij<l,ii'~',t't~O °l 3½ pei CClit. and th~ ~i!t][ultr3 ~c ilcl tlI) was gaiilitl~4 ,~I l)t:l iI'nt; bill tO ;ittli= I~llt~ fatnl]iar wldl sales-t;tlivt~s d'~llatlt~(~ and the p~,,Idtm ,;I ;liit.xllll~ .t ])Ii~11..it~ iu~'¢{% ii was apl>aicni their tile NILl~i~ ~ il;q);ii~.lt ]tail eh)llt~ ;i Slilitt'lt(]<~ti~ !hil/~ [i! niJi[t: 4)i &l~lli b~'ilhld thvm [ u~ kuC .aI.~ dt+>~+~et~ ~i~i]LTl~ Lii1ul)(l~[~ ]~t I.{ll)lk,,lli) li*14141~11:[~:~ Ihu Ili;lii~ i,~,,l,h m ]l+~,.~I~tl ,1i1[ !¢lttaiI~ori, atld \[1 l']~r, Iltt<klut[ til,tll/ to ,It:aI wilh it. li;lllktti li~ the I~.t'XliO]ll~ ad%t'T(i~itl~, {;tlttl Iniucc. illat[¢" up id iloald (]]l:iilTTlaFI ]io!t'ml!tl (ii;l~ in,~]cn .ill~[ XlCn~lq \tdlian;~ i~.tt~ +filt~ adl('ilIMIl~N J,unc~ (71.It I1 k'tl a~llI (Tail lIillll~ (ll/Cllhalldi~Tit~. t ]tt i+14,i)iuln ~ilh (],lint [~, il ~;1~ ;l~lc¢'d I~:1~ i]iat I!I~ bali lillti1(, l~i [1(" kll~lX~ll ;is d tltltkdli~.ct's Cigafcl!C l(~t'l\h~)d~ ~;li([ tht:~ t~clc ~[l~i]l7. ]'lie llll~.~l" ~[llIrJll l;''',ii>l~ :~c',, ,,uc ,.t die ~:~4~ ihat (i~111i¢1~ l~ctt' the cl~alctlt <~l tit- \.E-F. The nalliC, tilt i,.,k oi t[Ic I+a, k. ;il~,t ili~ t~iI:iltt!r lact that ~.llltt'] ad~ (+)lltliitit'll tl* i~lll)te th~ "Ot].'r .+(ount+ +,leJud,' ;ll,, T,=a llurelll; i+{; I [+t#l+]+#J41+r+IPi ¢)f +e(l pla,le'++ +n India C++l~O+~ J+Pi+i ++P+,i +ILp#I+II)¢+ +t,~+) +r+ +I+~+~ ++ ~P+P+I++~ P+ ~++++#- Irt~ in riw (''; ; B.umt- B+-;i..r+,;~ Frerl-,'f-++++++i+ lln(t Lehn .." /+rib. the la+t +,e;7+~ the +~'¢+n+ +~ f~+ iJli~;ttat t]l~r'c br~ l+l+J+l++'t++ tit+++ ~+l+ ~+~I++ +l++l.~¢rl in l,j;2 #:; m+..e,t ,,u¢ L,+ r).,,:~++ t/. ~T,~OI 0350209
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SHIPS, reflect CUISINE and SERVICE r"l ' 1 " years oz Knowing.now (and the rates offer utmost travel VALUE) The MANHATTAN and WASHINGTON are chosen by veteran trmls-Atlantlc travelers voyage after voyage. For one thing, the~ ships have such complete equipment fi)r comfort and luxury -the)'re so ro.my and thoughtfully arranged. But more inq.,r- Taut. huw~er, is their very genuine and friendly atrnosp+hero of h.~l,~ taiity yuun notice the first day out. The fi-,d, th," ~ervice and all the "filtle things," hm. reflect half a century's experience in knowing I~hal ocean travelers ;,,ant. Whetlwr it's ltle shipq.-~h.re lelephone, the calibre of the dance orchestra or the car," in selecting the first-run picture~-- ~very detail reveah the .~anle unoh/ruslve and skillful management. Measured by arty yardstick you choose room. cuisine, entertamm,-nt or ~dml yuu ~ill--thc ~bznh,~tl,~n au,I IV.l~hin~.~,m -+.ire )ou utmost yah... UNITED STATES LIliES taiNt n m nu nmlm nn ----- --;- Illllllllllllllil|lllllllllillill aiD|| iliili -- + ........................... • °o oo °° ,° o. o° 93 /q ]',',fro "7 03 502 "I 0
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7: wnman sln~lket long aftcz e~vc'n d¢cmmls Chcstcrtle](h wel'e urging .',~,tl to "Blow Some 5Iv Way." were cerlalnly riot calculated to give all' op}~lsite impression. But Ihe real reason wh~.' ~nll~kelS c¢)ii~,ldcFed {TI.anlcl", %lllt[l~. the ttlinkt'rs decided, was that Re'molds had hexer said the], wele not. E~t'n as L.u~kies antl Chcs- ¢crlield~ x~rele (Ioing, so E~Ii mtlst teach into the g~ddetl t~,'lil~der o[ Ilis dgalctte and find ~t,nle Illlll~llitt'd %btne that ~'oltJd say "mild- ness.'" U nabs'are that he '~'as Oll s~ered ground, E~lv as a first step suggeste~I pletti[','ing the pa¢'k but stl deftl~ anti imperceptibly tb;~t even the rllmt hideb*mnd Camel smokers, who migllt StlS ~ect that tile quality of tile <igalette was being altered, amtdd not ntitiee the challge until it xv:ls done. "[hat :lndilcilms scheme fell ~lead at his feet. HorriFied Re}nolds executives w~mld s,~lller lUln R, J. Rc~n~JldsIs I~t, ttait ill Ihe I)irecmrs' l{~llll l(* the wall: lot tile ~l~Is of the pack were faith[ul tepitv i{tlt.tJ,ln'; t~[ tile ;el'x IOba¢{o in tile cigarette. and tile pattern had been worked up by "It. J." binlself. Ihi,i i~a~i only imldentaL altd [~t'~' was sonic ~,li on his [aiettl[ mi,,i,,n. In ]une, Ht~3, it x~its: "(~/llllels Ne~er Get ,~ll Xlour Nel~cs." Im~ked by le~till),miaI. II~llll ¢ch'i~lities like lull [ ild~.'tL I:1 1~134 it ~va~: "C, et a Lift." (That R;lillt.ll '-'3 [*'1 (Terlt: Cbt'ste~fiehh. II pet ¢t.nl; allot I tIIkies htst ~) i~er c'ent.~ lit 1+}'~5 il was: "'.\thletes Sa',' 'Catnds l),ln't Get Y,~{ti \Vind.' " Izatk ill I'iht i*l;/¢c: l.lltkic',, in sc'~¢,lld pla~e. ~'t'le n ) 1 per ~.t'ltt; Che~terfieht~ did itill~ tll~,~e I Ill 1~13t; it wals: "F~r Digestion% Sake." !(ialllels tip 21 ]~I" cent lot all all-lime re¢olll ,11 .tl.7~l.t~,<l.t~l; (~he~telfit:ld~, l(I pel {Cll[: I.u~kies. 9 per cent.) In 1937 it was: "The 1.a,ge~t-Sellit~g Ciga,eue." t(;amels up .' per ~e~lt. [utkR~. 4 i~t'l itint. (;he, telfiefits, il~, ~:IiTI i And this ],~.'al : "(:amds .Ig, e~" s~ith 3le~" Camels :g~'t a l,ift OF t'HESE thellle~ ttll~ ,~lle that E~t~ laces as ilis laurel ~iete. and tile ,)tie ill;it leally re:liked tile tllrnlll~ I~illt in Canlel sales, wa~ tt c I'(;et a [.ilt" campaign ~)[ I~ ?~l. l;t~liti >ted h~ Lti~kics' "It's "I't~;isc~l" an I "l_71tta~i<~let R;l~. 'the [.i~t inll,ldmt'd "St it'lllili~ l~,c~c.tl~ h" illt,i ti~atlClle adxelti.inl~ At tile il~ti~ati,ln ,,[ ~i;tlted tfilggitl~ int~ IIlei!it:~l litCl;Ittltl: ~,ll t,i])Lt((~> ill ~<:alc It ol ;lllxthJl~ that illi~ltt take rl~e [~[:lx tl,lnl I.mkie~' thl,mtl;r~ltecti,*~l ;h,'mc. fie ~;is ;itll~alle~t t,i di~cmer tfia~ ~!,~, i,~ls Ilad jnmh]cd ~l!~ ,~i,.'ll~e WllIi thcii ~,llltltl~J~e. Nt'~ilhelt-,~ d,~t,~ts x~-cle ahllmt trod l~i thclll. ~)ll IIO i~ther k,~ml/id~, a ~ ~ilrt.llll~, Ih;m lhat this was lfie ~t'~elal opini,~n, and ll[>l~,~]~ Wotlhl detl~ it. Bill all ill~llSpi¢~ll~llS ptl~',it+l~>l~i~ls at Yale. l)ls. Haggard and Gicell- ~hit]l i~ the illdCx o[ ll~lllt.tll energ?, xv:l~ ill- I,l~d ~lo~s to ~h~'tk tl[~ ,,n it I lie lel,,llt X~:lS lJil'tI{I ill,Ill 7.111 ;tlticie Ilultii,ht'd ill tile itla~a- ¢ilte ~;+ie~,<e earls ill 1934." This was what E,t], had I~:ell Ii~iz~ f.r %blaxe with ttle file ~f creati~lll, with the "Get a Lilt'" alicadx ".l~d. irlclrlental[y, treateet at length by FOIT~XE l,'l all article "'.tlcohol and Tobacco" ill ile'¢~Jle'lllber, I Ij$. hl+~ked otlt (in llaper, he h;isl<'nel[ ill ~\'ii~,t,lIt- SallmL "A fil~t-r;itc idea." Nil. %\'illiams ~aid-- i~llly to ask: "but did the~ie dtxtl:,ts use (]anlel~?" Est) hadtl't stopped to ask. [nqliiry at ":ale met ~'ith a rehulL l)r,~, tlaggard amt (;reen- Imrg ~otlhin't recall whether ~.~;llllel{ had been tl~,tXl. Not only thai, ~i'my and the ¢,~llege authorities had Ilet.i1 disllesst~f by the pull- licit)" gil't'll the iellOlt and did illlt ~'idi m f~ involved ill am' eel II leidai exp o arian. %%'ith tbat .Xtr. "~%~illiaiiis ordered tbat the prc~ [x)~ed tam )aign be heht it ) utitlt indep¢'ndei)t resea tit wi h (..;Inlds ctluhl ¢o|lhlm the restt| s. Esty ptit the Fo~:d Research Laboratot/es. Inc. in Nt'~v "iolk It~ w,*tk, while fretting mcr tim chance thai olle of his tom )etitol~ might ha~ e seen tile s;inle art t e aml ei}~ ~get l}le ~ille imssibilities, llut before the c.xpctiments hail gtme xel],' far F.st~.I~ lesearcher canlc ~Ic'r{l%'~ an oh~tule altide ill a St.llldll),l%lall tllt,dlcal journal tllat pt-nxided tile necessary mnfinna- lion-as intlch, an}way, as Esty needed. Two Swedish stiemists, investigating the e,~ect of smoking on diabet/t-s, hat[ as early as 19~9 atltid laced tile Yale lexltlts..Nit~tine, Ihey conduded, Slitllulate~ the adlerla]~, cau~ illg tilt'ill I~J exnde adlell;i]ble, whJlh ill iiiill ieit-ase~ ~uga/. What ~ladtlel~ed F+st~ ~':l~ that tile blonde, ll+ld ,lt ltla]l$ used (].lnlt-ls. I~tit 11,11 Ulitil tIl¢il own l¢.~e;itehcr had (1)llfil]ncd tht Yale fiitdings ~,~tlld Mr. Williams let him ~,~ ahead, l)r. Haggard ",'¢as {tllilltls llh(.ll tie ~axv the ad%erliSelltents. "~mt)king illa~, be ~lalnt h/L" he extl:limet]. "'[2ol~st.ll~t st~llllll,ltJ*~l *~f tile atbenals l~la~ be h;trmIti1. "~%'e (fim't kn,~w." This was ,rely Ihe slnall qtleltll~ltl~ x,~i,e ,,f a illl-e %tietltisl. I.,~t skc iii¢~ ~ll~l wrote askin~ [Oi e\ >l.lit~lli~*n Rc~nohls had a f~,ltll lettel that debt.Jibed [fie ex )('rinlClllS, alld ,11 the Lilt said: "'lhi~ t.lt,-ct ~+mtimie~ [or appmxi- illa(el~; hail act h, illr, wfictt the i~';cellla~e ~)f bl,~l $11~al again ~¢>e~ ~ack to the plC%l¢ltl~ lexel. It*me, el, Ihe ~ll~¢lkill~ ~l[ ;lll~sthtr C,IIII~21 l~tl[ a~.llll lllClc;l~e lilU Ii]~xt ~ll~;l[ ¢l~[l¢cncia. i l{ ill 1 ] ] ~ ' ;~ $ inl[{h aN all% E,tx tltCllle, lhl- Lilt hdped t,, th~llil~ Ille illihhl , ~ilt*t'I~tt It,,lls al~llt Camch' btillg to,, ~lr~ll~: tlld iIleiln~vtlitt- a t{llllll[llU ~l lt,lllll,~llt,ll, ~,~axcd [rl~nl ~¢lety W{)lllCll like" ~,II~, lhme]L (al~,~l ;rod Mrs. Nithola~ Bidllle .it ft~,liI Sa'~,, t,, ¢,t,,.n, each. t11.~1¢. ,l~l~lket~ I,,tg¢,t ~Jmc { a~/lcl* ~'t.te e~ei a tru~k drift:Is' slll+,k~I. TIIE ~llldCtlt li ~t~;llttle ;l~l~tltl,ilL2 .> ~t. s(.In~ Ctlllellt L'x.illlille~. t.liIll,~t ,itltl itll niaik a disqtlictInl4 [/t.l[ll>. t{.iXillg IJll-I1 all m¢'t tile l,,t ill ~l.lllh ,~l ~¢,lltc'thill7 ,]trtu-lenl [~ ~;ix, (5;llllel~ and Lttt klc's ,ne n[,%l ~t.1,111[l~1~ it'dull'd IO theft IhHlll{lln~. lilt, filnl (.\]I+IITIII~ X*~LI to tie Itllch, l[ b~ ihc !)luteltlllt,~ <~t lic lllt'll I~-htl A,#e~l~, lt>]).ll l ,~, .1114~ i!lt- I.itlt i ],~ file plelt*lt, mt's ,~( (]lc" CL\]IIII~ ~tl'~ ;'m', II. t)n]~ Chc~terfl¢>hll h.l~u.n't dlall~t'd lhell !unt: lhe% h;l~e newel lie ~:illt.d flltltl thL'lr hlst trot', Inlld- ile~s. %Vilfi athe~ t1~[117 lllmllinatilm tt'Tt/ ~,rarl[) ~till~nallt, t i~ l~ell ~,siih t.x;llll n 111~, tilt. t-I[t'tl~ <in (tnlt+nt sah% as lc'lealed hi tile l]r~t Ii~e (~i(} (i~[ll~t[eb: (:hvntelflc-lds. s,ll, i>¢~,,.¢~,,,," :tnd Llitkies h:l~- ~ailltd -i,,,i H~> ,~,>,>. (]alllels ate dehnitt'l~ sll!,llJll7> "Ih¢' qut's- II~lll i~ ]lllM" far ,11 l" iht ~ Ilk< Ix ti~ ~lll,) ~tllllt>l~ aic allcad~," ahitlad that tilt ~ .tic ,,ll t]lu" t,,i±,~R. gan atlain, atld liial lhe c t t I tI ,,I .i]ttTlt,ttill~ le,ldetshi|l is ab~lttt t~ It'{t~,~t'l( il+,<'lt ,Itl ttle ,iRarc~te illthl~llX'% th,nt %., Ir~ I]l;tl, n<i ,111,2 leallv kn,lw~. I[ ,,lllx I~cttitl,e nl~l~t flglnt-% ~lealing wJlll Ihi~ ~ct*eti~ e il)llll,,lr~ are glJe~,+,es. I:,~r l/ire thing, Ifie theiished tvdit thm,l~, is ha:~-d nlt)le tll~)[i a coincidente than air) tllgalli~ I;iw. FI,i an,llh[~r, m~nlh-l,~-in,,lllh cui~e shi[ts of individual brands ale s(aliel)¸ reliable atlgtlt ies as tel tbe long-rallge pi~,gl ess of ally one. The year-end tabulalio]is will I~ s~il en,~iigh to tel[ whelher tile Lift i~ ~lill ill (-alnels. Iit t|ll' nl~.,;intillle lille i~enet;tlity iI~a~,• be ll.,~t(h r(,tli(,rIll~c, litl~. [~ lhe lecCTit eottrg, g2 t)t th(" ti~alelle altl~ln~ tile Bil "lbree has prmed an)thhl~, sal~:sl*'l~<', it is this: that the: i~o mlar- it)' ol ~i1"t' one inake ~alil_~ alnl<tft in dit't~ct )l-I)|~)itiOll 1o the tblu~it of the advertising do Itirs telliitd it. In l{t'~l. ~,,,'ken Lllckit.s ll, ele r+~kelblg, ~lr. liill had over ~.l~,iT, e~,lltll~, ill adxeitisitlg illOnL", tit, hind lli~ (i~ilt.tte, willie Mr. %%;illialliS had ¢ln]~' ah~mt $111,t~t,,~t~] ~lwerin~ his Canlel~ Nm~" it's tile otbei "~'¢;I) aloll/ld. BehJllll (]ame]~ Mr. "lVillilsils has Ihl' btllk o{ a )lt] et led ~l.t.l~),tl~l ap >to )ila[i¢lll (inc uding a week '." bill get ~)f $S{],tc~) f¢l~ t It" llClln~+" (~,>lxlnian ;iitd Eddic Calli,>i t~loai~ casts). }]is £Olll]x:titol, oil the ¢lilit'r haiid, admits Ill Sl>ent|illl~ al the lille lit llltl~, $,~l,Ti~l.- I.IIMI f~lr the CtlliCnt ~eill, exdusive Of radio talc:tit, bi/ll/oazds, ,7,tld SOIII~ ii¢'ll's[lal~er s|late. The S~ltti~-c of \'fillsht-~T THE le~iIIl~lNV ~*l t i~alt'li{" ]cad<t~hlll ]lil~n ( It'll Rl'tll+}lds l~lllttltlt ,l~lhleill%. "| ht'le i~. fell C\.llnl,le. the iml,ld,lx, l)u/#bnq tl~ ~Ll~tk- ~l,~[ttel~. ~,L i~l~llilS ~tllillkln~ on ~¢lhlmc. a ~,ln- llti~..X [Clt"/llJllllt¢*~" lt'~/ik l~-/tb il tR'll~ II ~i~lx(:~ Ihat where Re)nights lletted alllund $1 Oll e~crv tllmlsand ¢ig;llettcs mid in I,t~2. it tm~" a~er;igcs ,~lli~ [i)tt~-~lx Ct'nh. -'gltll¢)u~h ~[I \%'itlialtis keep, In( fi~nrt-~ Illlttt,llt-d tits. it t~ lalll~ easx 1o I,~<;llc tilt" leak; it (alllt' lltl~t.t~ in the ral~'- ii¢~itl¢l ('o~t, xdlidl was io per CCl~l hix[ler I:Int ~eal" (h,lll ill I~1~1, t¢}iltl.lStlll~ I~tt]t a 17 per cetlt th¢l1, t/l ttle llet I)li(r (I1,~1 nl~ hld- in2 laxt~ and dl~<~UlllS ,,f the (i~alt'ile ilcail- I~'hiIe..\llitl~lxJnl3[d'~ ~,1.'-'° Of the ~1] 2% hal [¢ll~,i~e~ l[le I%. (,oX('lTtlllt'tlt l:tkt'~ 3~ t,~l b,iI ~e iilt~-il~e Celll~ ~*~.'s to IllallLIL,ictu llx~ (ill('ludinl~ ,;ll)(~l twelll~-iixe cenlg t~) al[xel- i1~111~, and ~eXetlt~+l~llll CelllS I'l;i dt'alel~' <li~- c~llri~, l.ab, lr cml~ h.ll-(, L,(in~.- Iz/i. and I~.ht[o t]/~.x pl,~bal~l~ dr/ ll~,t t'\lcel~ 3 I~t'l tcnL it| tile llrl t~lltC, the t'lt~'(ts II.t~e .lira I>~'en nl.llLllCnt il tlie j i,tlIi lll,il~lll "l hi, illClea~in~ ct)~t, I>[ ittSlTl~ tlLi~lllt--~ ¢-~ a~L, rall,(I h~ .I tlClIIt'll(l~ltl, I~lllLl% till tttttTl- i,~lX, hale ~ll~mtl ill> ~l,ect.lcl~la~lx m Ihc Rc.~n,,hl~ t;1~[l .ll~miii[ .\t l[~c L'tlt[ ctt ([it" xl'ar lilt. (,>lllt);Irl~ illI c1111~ q:i.]tH).l~l 111 (,t~tl iii la~ ~t>~elnllitlll ~l'l ill tiJl'~ t]] 1~7~2. ] l~l~ lliiL'lil h h.~, ellt,ltlla:21"d a l~ellel iil ~,lill" ~!lLIIk'l~ tlial R~,~ll~,lll~ ~l]I ,,- Itl1~l=il Ill .tddttt,lnal ch.l~t'* h~iI11 xtal I,, %eal ~ll'i \%'1 ] =llllX dllLl i1% i]1)~ ll) ~2~.(Jt~),l)l~l tl+>tll Ih~" b,ltlk~ I,l~t }e,+/, ,hc'ltin~ out ~2-,,,.,,,,,, ,,i ,<, ill illtt'lt~t ,>tl tiic 1N;lll~. Ihe high l,titc ir,<l tht> i i~ Llltl]ll,sit ,~ hllrle~ I~,l),l~lll o11.1 tile" i,lt.letlltl~ xeal h.lxe het'll L:~l~t'I~ t(~ [ll,ll/it- [l>t the dl,,,I l;t.al:tnt c, I)I ~.In]l i111~1 IIIxt'nl,,l~ With l,~we! pLi~t'~ Ill 1,ion- pcct thi~ fall. ~.[l. %%'ilhalli~ iii;1"~ ll,i[ h.lxe t~, ~,l~ ~¢1 ftttll_lt lll¢lf/CI ofi (|lZ' lJll{. ~2x+Cfl [~LI~I]~I i)pelatc*~ ill Ihe iObal c,~ ie~l~Jn~, llt,l~ kt'ei~ ~lil$1 prevailed ill 19~.'a. N,,t that .',I~. \','dliatns [Co,,I,,~t, ed ,,,, page ,,~,] 97 • "tl. R T HO 1 0.350 : "1 1
Page 51: 0001433170
WHICH FOR THIS... DAYTIME RADIO*. Evtrv day in little Io~n~ in zreat ¢iti~ milliottg of ~,ml,'n tim,, in Iheir ra,lic~ t~ ~hare the to.~ and hater. Ihe tra_-~dies and j,o~. Ihe r,.man~'r ~nd ad- ve/lhlr¢ of the ~q,le ~l,o t~,puht¢ the day- Iifte~n minute+ a day. fi~r da~ J ~e~k. huibl trrm,+n,h,u+ a,+di,'n~'~+ ,,f I,,~al Jnd fa~thf.I llsleners. FiJr certain i,r, Nluct+ daytill~e t+di..+ ~ah il~ dav-atter~lav r,'[~ti6.n of th~ ~il- ing me~a~e, i+ the tn,~t ~lt~'llve and ,x'o- n,,m~,'al form ,+f radi,, ~,'llin~. Radio for your product? If so, evening or daytime?... A frank discussion of this most important question front the viewpoint of Benton & Bowles If VOU have an evening radi. program-- rnav it not In. Ihat xt~ll ctJll]d ~+.l far more for +~talr tttolllw frotTt dtlvtime radt'o? If yon have a daytime radio program-- i.sn't it quite possible that atl etening program ttoldd sell more of ?'otw prmhwt? For some reason this question of daytime radio rerstJs evening radio is one that is not discussed as often as it should be. Perhaps this is because it is such a difficult question, one in- w,l~in,_. -,~ many xarit*d Iactor~. \~' at Bcnt+m & Bo~-les d0 not profc>'; to klloXx all t}l~' an>~er~. Fh+t ~,e do ],,.li,'~e i. careful study and discussion of the matter in earh parlicular case--entir~'iy apart fr,m~ the ques- ti+m of ~h,,thcr or not ,zax t?, l"" ~f radio ~h,mhl b,' used. For |~olh t)pes ,)f prw_.rams are trenwndou~ly inlportartL Both ha~e h+-rn backed h) ,'\Itcri~',w,+,l adw'rti-,'r- ~ith iar~e StllllS Of IIlO/It'). I+a.t ),.ar, on the major n,'t~,~rk~. -om~ ~:t~6.350.0OO in time and tah'nt ~as .|,,'nt ,m ,.x,-nin~ ra,li,~.., ab.ul ~.26.(g~AX~ ,m da?timc radio. Benton tK Bo~dcs has a ~ddc ,+\p,'ri,:nee in b<,th daytime and e~ ening radi.. We recognize the vast difference between these tx~o t? .Te+ ~f programs. Each has its ot~u technique, its own set of problems. Each has its o~ place, its own commercial Ol,portu~itie~+ We have no bias toward either. We use both impartially• 98 f3T" + ,'*,0 "1 0"3 502 +12
Page 52: 0001433170
"I1. ~ -- • I # ~'; t. c;( S 1::. 0 t.O,,+,_t~J lel+il i-,~-+~,~,~ alI ++q :~ale!~r ~+([ i+, is(,tu utsql uiaq~ ql!.~ It'+[~ ~u t,,+~edak[ .~all,~(t ,~q i)lnt).~x ,|,%" ,~.urU almA.` ufl 1,]+,\~ .]tn.,tuu~!~q: ,u,>, : ,L+L ;,, m,, i,atp, nd • i. ~,i,~J]',, ~ii! S~Zi] q!li q~ ,] j] 'lit 1: l[ll ( % l( l| ~,l ill i . iLlr+ s! all nn:+l Nil ,u -p II!+~ ~T Wtl-~ ml leaj .ltlj ]~.nll~!ul ~ l£~'ll.~l~q.aql l(~!I[.t[)R)]~ t: snld *~]~l~t]I~tlt ill l~al~[ M! n| l[l+ej u:+'II:tls ¢ in(l <sa~li I~JOIl.'+,) JO nnli lql,m:d Mqecloul l,tlu,.~ 1[ 'l~++alleii) aq pll.,+ ~tld~,c(q!tld lt+lllill,d ltt,)saJd +'Ill II "itl,illllU!i~d~lis~lp ti! Dll+ltl ]i'~(t i~ia+~Mp il! ~)tl "Jttl<>t1 ])ctI '.! atI +;,t.itllt> /ill a'lll pti~' •;'lllti ~.'¢ ~l ~tttt:]lll%xl 'lr!il~iipli! s.17#lli:ill ilO map -lg;l.ll:[ alttl ~S!Ap'~ ol ])~#!l!(llliil 31<)it +~.~ltl ~l:~i(.ti i +ttll'i,';tl]tl~|7+%% ulu! pa~polJ--p+~L~A '~j l.l>~l(l()~+.t |P+A<'ILIa9 .l~i![--ilI,)tll In +,ll;l.'t)1) 'It:all ~l.'l~ "1 lifo ~ll:[l ]o !tln+lli~)]i(ltti! III!UU.Itt!LU aql icI il.~'~l!J~ ] i %l~l~ I }~111 ),ix I~ ) I1 ]1 ,~1111 ilC~lllKli i ) ' , ., _.l < • <' Pql - i 1'. ' . . 'J' I ]i +.o it.+r,.~ uq tl.++tl.++ uo;~L+l paxapli+X,~q l.tllj ~i++ m+Ul'l')q +tU+!ll!,'+\ :+I'~ '.tTlit"OLl.l'IOtL ! ,.'~l)Li.31,~+lll4,1 a)l~,l(l ~lll O| |lilt!if:lilt:i(| UOllO? l<~n~!(I ~.tic~!ll~l ')ill ~tilll Oll~] ittil.tltto(tl2),() pile [inxnq tllllltl)atllj f { Utl ~,t'{; ) 1[11% "b tll~ I1! %. ~elO na~ 11 .,. 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"li! fit[ It! lt[,]tttlilJ~+c ~tilh+~lt?tll [l+;til atfl J+l] %+l~l~al~adxa ll:.iilll(~]l~ellb ic/~)a.i +,ill 11~ ]o l+otu "pne ',~upqei+ i~:lial l!t[ '$]UJllJl s,mi+!llt/¢I +7|.,~ [cicc,itt~ci'i Jaqi~j slI l+lae Ilglili.a'~(l(|+~ ++i! ~,u lS.l!q ~lJdn pauo'~e} l+ett ,(JlStlpu! o.I)l~(l(ll ~='I:P lfitl Ill if ~ll!,~l at[ ,I.)lll;)l[,vl lel]l lie| alli .'~cI + p;tlli~a.l)ti! 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YOUR PRODUCT or THIS ? I I i EX'EN1NG IL&DIO[ Glitter and Idanun:r . . . drama and .x,'i/emel~t... music and I~i~ /;alnt*s... the~ arc th,. ,etaliti~ that the ~'r~at e~'nln~ ~l:,,~- have p.t irlt,~ tn,nh'rn tnas~-.rllilxg. Thry h.ihl t,r,'~i'ze. tremendous publicity, listener h)y~hy. For certain pr~hwt* ewnin~ rndi,~, ~ith it~ p~-er and impof I~,,e,,, ~,~ 1~ made to ~ive the ad~erti~r Ih~ ~r~a~-t r~urn f~r hi~ radio d~llat, ( ~|M~w. Clark (;~bL~ ~n,l \Vc are int,'rr.t,'d onl~ it: th," qu,'~tion: \~ hieh ~il1 work hc-t in ~l parlil'~d.tr iu~lan~'t":' \\ith roughly onc-third,~f t~ur t,dal billing in radio {t~,o- third~ in magazint's, nc~-pap,'rs and billboard~.) about S3.{Xt0.(~t0 a >ear i~ in c~,'nin~ radio, about $2,200J)00 iu day- tilllC radio alld ~pot ;~lttllOuneeln~.lll~.. Naturally, we have learned a good deal about the entertain- tll~'llt and conlmt'rcia| ~trll{yt/lre of radio that expcrienee in on,. fieht alone cnuht not ha~ e tau,_,ht us. We have encountered and solved prohh'ms tha t d. not arise unless both daytime and evening radio are in the picture. We ha~e ~tudied factors that rot|st be understood if an intel- ligent dccisiott on daytime rersux evening radio is to be made. Benton and CtllCAGO * .M~rna l~y. stars of Nfetro-G.hlwyn.~,taycr's new ph'tur*."T~m llotT~ Hdndl~,"~nd Li~met Bar~ym~, ~itll p~,~ram dir~,~t Ed (;~,r,i~let, il: let|on .t ~¢- he.r~| ~ "Good New* of 1'~38.") I f w~u ha~ e rze~ er gone thoroughly into t hi~ important and high]3 int¢.re.tin,.:" subject, you may exp~'et 6url,ri-c-. \~ ,' ~],,~uld b~ delighted to tli~cu.s it ~dth you in your ~fli(,,.~. ~r in ,*l:r.-- at L 1.4 Madis,m ~.v,,.. N,.w York, or Palmolive Bldg., (2hicago. BENTON & BOWLES NETWORK PROGRAMS I',}r Xlax~.,ql Ilgwu.,- C.ffce. "G.~,>d New~ of 103~'" (one hour'!: f,~r l'ahnoli~e Sha*e Cream.. "'Gang Busters" (,m,'-hMf h,.~r); fi~r I'ost'~ Bran Flakes. "'Believe. It.or. Not" Ripley (on,,-half hour~; for l.og Cabin Syrup, "Jat'k Ilale~" (one-half houri: for }',)st "]'oa<li~ and lluskies, "'B,~akc Carter" iti~e times a week!: for 'd,,mder Bread and I[ostess Cakes, "'Pr~t/> Kitty K~-Ily" i]fi~e fim,'s a ~eeki: h)r l'ahn~,li~e Soap. "|lilhup llouse" [five times a weeki: for C~mcentrated Super Suds. "'Mvrt & Marge'" (ti~e times a ~eek I: fi>r (~Azate I)ental l%~d~'r. "Stepmoti.rr'" (fi~e times a week.) In additi0~x ~,c produce aumerous le~'al programs and .pot annou:.:ements. Bowles, Inc. NEW YORK * ItOLI. YWOOD 99 R "!03 502 14.
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r,'.~o.~ 03502 1 s
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".~. 7 BERMUDA is an ideal growing-up place for youngsters.., a place free from the ordinary hazards of childhood. For example, Parliament has elim- inated the menace of motor traffic. There are no factories,., no soot or smoke.,. no "tough" or violent element. Thanks to the Gulf Stream, cold weather is un- known .... And the superbly pure air has made Bermuda a recognized refuge for those who are subject to hay-fever. The fun of Bermuda is found in pro- tected harbours.., on coral beaches and in gentle surf of lovely rainbow colours . . . in the Government Aquariunfs fas- cinating collection of tropical fish. Ou fine tennis courts . . . cricket fields • . . golf courses .... And in safe bi- cycle tours through a tranquil land of oleanders, wild jasmine and hibiscus. Bermuda's variety of modern hotels and charming cottages . . . her fine hospitals and ~choots . . have enabled many parents of growing children to extend their visit indefinitely. Such fortunate children find Great Britain's oldest colony rich in historical inlercst .... Their residence here is all experience to be recalled in after-years, Io he ,'herished for,~ver as a colourful adventure in Iseauty . . . and in health. YOU CAN GO IT $|l OII IY l|l t.u~ur,¢ liners travel from New 'fork Io Bermudi in hol,rs •.. a r,mnd Irip to/at ot ilearty 4 dly$ o[ dellghttul shipb~atd life. Sailings trora B,ntat~ ton. • Splendid new Iransaltanti¢ plan~"l take olt totlr tim~- *eekly, and d~end it Bermuda 5 hours ta~er ... an ¢nchal~tlng experience in the sky. • A wide eholce o{ ac~mmodatinns is p~*ided by Bermuda's many hotels mad (otlages. • No pa~ or ~ is requllx-d tot Bermuda. 4 Rl','. Ol 03502 t 6
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TF~E AMERICAN MERCURY - SEPTF_~ER 1943 / THE TRUTH ABOUT TOBACCO BY ROBERT H. FELDT, M.D. SXiOKtXc causes high blood pres- sure .... The best ~vav to quiet your nerves is to smoke a cigarette .... Ifa nursing mother smokes too much, her baby will be restless and irritable .... Myths and legends like these dis- solve in the cold light of medical research. On the average, the smoker's blood pressure is no higher than the nonsmoker's. There is no scientific proof that smoking quiets the nerves. Babies of moth- ers who smoke are as healthy and happy as other babies. The use of tobacco doubled dur- ing the last war and it has been steadily increasing ever since. This nation is now consuming nearly 2oo billion cigarettes yearly-- two p~ck- ages a week for eve@" man and woman. If the present war accel- erates the trend, is there reason to be alarmed? This question can now be answered by a critical study of the latest scientific investigations. Years ago there was a general impression among doctors that smoking caused low blood pressure. Dr. Wingate M. lohnson, a noted internist of Winston-Salem, North Carolina, and himsetfa nonsmoker, set out to see if there was any basis for this opinion. He selected a group of 15o habitual smokers and compared their blood pressure with that of 15o nonsmokers of corresponding age, sex and body build. If smoking had an effect on blood pressure, it should show up in a series of this size. He reported in the JoHrnal of tke American Medi- cal Association in I929 that the average blood pressure of tobacco users was I28 svstolic and 79 dias- tolic, of abstainers I3o/79. For practical purposes, the two aver- ages are identical. A much more elaborate study has provided ample confirmation of lohnson's findings. Drs. James J. Short, Harry J. Johnson and Harold A. Ley of the Life Exten- sion Examiners in New York in- ROBERT H. FELDT is Assistant Medical Director of the Northwestern Mutual Life Insurance Company..4ssociate Preceptor to the University of Wisconsin Medical School and a m.eml,er of the Cardiac Clinic of the Mihvau&ee Children's Hospital. =72 h31- , 01 03502 I 2
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t ! THE TRUTH ABOUT TOBACCO 273 vestigated the smoking habits of nearly I8oo comparatively healthy insurance policyholders who re- ported for annual physical exami- nation. Writing in the Journal of Laboratory and Clinical Medicine in x939, they stated that the average blood pressure of I292 habitual smokers was 12t/78 as co~npared with x21/76 for 496 nonusers. Dr. Arthur M. Fishberg of Mount Sinai Hospital in New York has devoted a lifetime to the study of high blood pressure and his book on hypertension is a medical classic. In his opinion, the use of tobacco is not a factor in the causation of ab- normal blood pressure. The belief some doctors have held that smoking brings on hyper- tension is based on the observation that smoking may cause a tempo- rary rise in blood pressure. For most people, this effect is slight and disappears in fifteen to forty-five minutes. Blood pressure rises in response to many stimuli -- excite- ment, a disturbing noise, an un- pleasant thought. Drs. E. A. Hines and Grace Roth of the Mayo Clinic found that the rise in blood pres- sure following the smoking of a cigarette was of the same order as that produced by these other stim- uli. A few persons whose blood pressure rises excessively due to minor irritations showed an inordi- nate rise after smoking, but even this extreme response is transitorv. It is theoretically possible, of course, for continuous smoking to produce enough elevation of the blood pressure to cause hyperten- sion, but practically this has not been demonstrated. Dr. Fishberg has observed that the majority of heavy smokers have normal blood pressure even after years of over- indulgence. It is wise for people who have high blood pressure to smoke only in moderation or not at all. "Their blood pressure is already so high it should be kept from going higher if possible. Smoking should be reduced to a minimum for the same reason that anger and other emotional strains must be avoided. II Smoking does not quiet the nerves no matter what the advertise- ments may say. Only 3.8 per cent of the nonsmokers studied bv Drs. Short, Johnson and Ley admitted that they were nervous, while 6.7 per cent of the smokers had this complaint. This doe~ not mean that smoking causes nervousness. Their report suggests that nervous people try to find an outlet through smoking. Does moderate smoking ad- R T,'.',fO'7 03502 1B
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274 versely affect childbearing? Ninety- nine of Ioo leading obstetricians recently answered this question in the negative. The Journal of the Michigan Medical Society quotes a prominent specialist, Dr. Potter of Buffalo, who answered "no" to this question and then added, "Being a nonsmoker myself I have looked for bad effects both as to milk sup- ply and poorly developed children, but after a long period of observa- tion I failed to find any injurious results." According to Dr. M. J. Chiasson, pipe smoking was a uni- versal custom among early French settlers on Cape Breton Island. The excessive use of tobacco by both men and women did not im- pair fertility and large families were the rule. Some women had as many as seventeen children and families of twelve to fifteen were common. Moreover, a nursing bot- tle was unheard of among these hardy French settlers. Does the milk from a mother who smokes harm the nursling? Drs. H. Harris Perlman and Arthur N. Dannenberg, Philadelphia pedi- atricians, puzzled over this ques- tion for years. They wondered if the isolated reports of unfavorable reactions really applied to the av- erage woman. Their conclusions reached after three years of ex- haustive study were reported at THE AMERICAN MERCURY the last meeting of tile American Medical Association. Dozens of nursing mothers gladly volunteered for the experiment. They contin- ued their usual smoking habits and each day specimens of milk were analyzed. The exact quantity of nicotine in the milk was determined by a iedious new test. On the av- erage, milk from occasional smok- ers contained 1.4 parts of nicotine in Io,ooo,ooo. There were 4-7 parts per Io,ooo,ooo in milk from heavy smokers. Drs. Perlman and Dannenberg discovered that the mothers who smoked were just as successful in nursing their babies as were the nonsmokers. Even for the heavy smokers, the quantity of nicotine that entered the milk was infini- tesimal and had absolutely no effect on the infants. The babies were cheerful and gained normally in weight. Disturbances of digestion and irritability were no more fre- quent in these children than in babies whose mothers did not smoke. Do you remember your first fur- tive puffs on grandpa's pipe? The chances are you were so dizzy and sick you wished you would die. The effects of smoking are largely due to the nicotine contained in the smoke. The reactions are greater if the smoke is inhaled; but \ f3"l','qO'l 03502 "t 9
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-j THE TRUTH ABOUT TOBACCO 275 even if no conscious inhalation oc- curs, enough nicotine is absorbed to produce some impression. In most cases, the unpleasant effects of nicotine absorption disappear if the novice continues to smoke, be- cause his body gradually develops a tolerance for nicotine. A confirmed smoker may become dizzy with his first morning smoke. As the day goes on, there is a return of his tolerance -- partly lost during the night. A few people are sensitive to tobacco smoke possibly because their tolerance never fully devel- ops. A cigar or cigarette makes their blood pressure and pulse shoot sky high. Diarrhea and vom- iting sometimes occur. Palpitation due to rapid or irregular heart action may be a distressing symp- tom. These are warning signals and the person who repeatedly shows signs of tobacco sensitivity should discontinue its use. Tars and other substances in to- bacco smoke are irritating to the nose and throat. Cigarette manu- facturers are waging a minor battle as to which brand is the least harm- ful. All types of cigars, cigarettes or pipe tobaccos bring about some throat irritation. Most doctors agree that such symptoms as coughs and nasal irritation are more com- mon among smokers than they are among nonsmokers. The morning cough of heavy smokers is well known. There is no evidence that these complaints result in serious harm. The belief that the irritating tars of tobacco smoke cause cancer is based on two types of clinical ob- servation. Cancer develops in lab- oratory animals if coal tar is ap- plied continuously to their skins. Prolonged studies with tobacco tar have been undertaken at the Uni- versity of Kansas, the Cancer Me- morial Hospital in New York, the University of Chicago and Birm- ingham University in England. Re- ports from these institutions show that tobacco tar does not contain the same cancer-producing sub- stance found in coal tar. Moreover, even with heavy smoking, the tar is not applied continuously to the body tissues. The other observation about smoking and cancer is more perti- nent. Occasionally a cancer of the lip appears at the exact spot where a pipe or cigar was habitually held. The constant pressure of a pipe or cigar carried in one position could conceivably cause enough irritation to result in the formation of a can- cerous growth in a susceptible per- son. On a statistical basis, the re- lationship between smoking and cancer is less definite. In I94I Drs. John H. Lamb and William E. fqT';.~O "1 0350220
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276 Eastland of the University of Ok- lahoma summarized their experi- ence in the Journal of the American Medical Association. Their study of 318 persons with cancer of the lip showed that three-fifths of them were nonsmokers. There is no clear evidence that smoking causes heart trouble. Smok- ing is such a common practice-- 6o-8o per cent of adults indulge -- that it is easy to make false conclu- sions. A man who smoked fifteen cigars a day for twenty years sud- denly developed terrifying attacks of heart pain on exertion -- angina pectoris. We might be tempted to say that excessive smoking was re- sponsible for his heart disease, but we do not know what would have happened to the man if he had been a nonsmoker. Many victims of angina have never smoked in their lives. Dr. Paul D. White of Boston and Dr. Frederick N. Willius of the Mayo Clinic are among the coun- try's best-known heart specialists. Both have long been disturbed be- cause they didn't know the exact r6le tobacco played irt the causa- tion of heart disease. Some years ago Dr. White analyzed Uoo rec- ords. Exactly half of these people had angina pectoris. The other half were healthy persons of the same age and sex. Fifty-four per cent of THE AMERICAN MERCURY the heart patients and 63 per cent of the normal peopte were smokers. A few years later Dr. Willius con- ducted a similar analysis involving 20o0 persons. He found that 7° per cent of the patients with this type of heart disease and 66 per cent of normal people were smokers. Both reports appeared in the Journal of tke American Medical Association and both doctors are sincere and honest investigators. Take your choice. The fact that one study showed a slight difference in one direction, and the other a slight difference in the opposite direction, warrants the conclusion that the use of tobacco is an unimportant factor in the causation of heart disease. Although smoking is not the underlying cause of angina pectoris, there have been a number of cases in which it is the precipitating cause of an attack. In this disease, the heart is already seriously im- paired. Any factor such as exercise or emotion which increases the work of the heart can result in an attack of pain. Smoking causes a temporary increase in the work of the heart by raising the blood pressure and quickening the heart rate. Therefore patients with an- gina pectoris should avoid tobacco just as they should avoid overwork or anger. 1 1. TXOI 035022"I
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THE TRUH}IABOUT TOBACCO Smoking has been blamed as the cause of hardening of the arteries, so frequently associated with angina and high blood pressure.At the i94i meeting of the American Heart Association, Drs. Michael Luke, Gerald H. Pratt and Irving S. Wright of Columbia University re- ported that hardening of the ar- teries is no more common among smokers than it is among those who have never used tobacco. Their investigation was conducted among nearly 6oo employes of a large department store. Elaborate tests were used to detect the presence of even a slight degree of hardening of the arteries. III There is no unanimity of opinion among doctors as to the relation- ship between smoking and ulcer of the stomach or duodenum. Un- fortunately, there have been no large scale statistical studies like those reported for blood pressure or angina. The Jo,rnal of the Amer- ican Medical Association reminds us that "in many of the most diffi- cult ulcer cases tobacco has never been used." Occasionally, smoking aggravates ulcer symptoms. When " that happens, the person with an ulcer should heed the warning and quit smoking at once. 277 Once an ulcer has developed, an increase in the normal stomach acid irritates the ulcer, producing ab- dominal distress. Many factors con- tribute to this increase in acid, but smoking is not a major cause. This has been proved by Dr. A. C. Ivy, professor of Physiology at North- western University. He gave test meals to a number of healthy medi- cal students and another group of patients with ulcers. After the meal, the subjects smoked four cigarettes in two hours. Only 5 per cent of the ulcer patients and 2 per cent of the medical students showed an increase in their stomach acid. At a recent meeting of the American Medical Association, Dr. Ivy re- marked, "The habitual user of to- bacco experiences a certain pleas- ure, a reposeful euphoria... which favors digestive activities as long as the limit of tolerance is not too closely approached." May- be there's something to the claim that smoking aids digestion. Or" all the diseases once said to be due to the use of tobacco, only two remain for which such claims seem to be justified. One of these, amblyopia, dimness of vision, may progress to total blindness. Most of the victims of this rare disease are smokers. Its progress is often stopped and recovery may occur if the patient gives up smoking. fq]'HO1 0350222
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278 The u~e of tobacco probably con- tributes to the development of Buerger's disease--another rare malady. About 99 per cent of per- sons afflicted with it are smokers. Even so, all doctors are not con- vinced that the use of tobacco is a cause. The disease is made worse by smoking and it may be greatly re- lieved if smoking is discontinued. The late Dr. Raymond Pearl of Johns Hopkins University discov- ered that the death rate of moderate smokers was slightly higher than that of nonsmokers. The death rate of heavy smokers was higher still. Based on his observations of 68oo men, Dr. Pearl constructed a life table from which he predicted the mortality experience for three hy- pothetical groups of Ioo,ooo per- sons, all age thirty. By the time they reached the age of seventy, about 54,ooo of the original group of Ioo,ooo nonsmokers and 58,5oo of the moderate smokers would be dead. This represents an increase of 8 per cent in the death rate of mod- erate smokers as compared with nonsmokers. At age seventy, nearly 7o,ooo of the xoo,ooo heavy smok- ers would be dead, showing an in- crease in death rate over nonsmok- ers of 3° per cent. Other factors may have contributed to the high mortality of heavy smokers. Tem- perament, emotional drive, busi- THE AMERICAN MERCURY hess worries and a host of similar strains cause some people to be- come heavy smokers. These same factors often promote the develop- ment of serious diseases in this group of individuals, whose death rate would be high. Most insurance companies no longer inquire into the smoking habits of an applicant for life insur- ance. If they regarded the use of tobacco per se as an important fac- tor in high death rates, they would not abandon this question. If you are in good health, and use tobacco moderately you needn't worry much about your smoking. If you have high blood pressure, angina pectoris, or ulcer, let your doctor decide the question. If smoking causes palpitation or makes you nauseated, you ought to quit. If you have a distressing morning cough, a few days without smoking may cure it. If you are still con- cerned, see your doctor. He can estimate your sensitiveness to nico- tine by testing the effect of smoking on your pulse and blood pressure. It is easy for reformers to dismiss the tobacco problem by saying, "Smoking never did anyone any • good," but the satisfaction that millions of confirmed smokers de- rive from a cigarette, pipe or cigar must not be overlooked. i¸:
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Philip Morris & Co. F01{TUNE --- KAHCH, 1976 • . . which, with the help of a velvet-glove price policy, an ingredient called dieth- ylene glycol, and a twenty-five-year-old dwarf, has run the sales of a new cigarette from noth- ing to $2o,ooo,ooo in three' years and is threatening to turn the Big Four into the Big Five. IN JANUARY, 1933, Philip Morris & Co., Ltd., entered the fifteen-cent.cigarette field with a new product called Philip Mor- ris English Blend. For so hazardous a ven- ture [t would be difficult to pick a less auspi- cious year than '933: that is, if the profits of the Big Four tobacco manufacturers are the auspices in which you place your faith, The American Tobacco Co. (maker of Lucky Strikes), which had earned more than $40: 0oo,0oo for three years in a row, saw its ~933 earnings abruptly reduced to $t7,0oo,ooo. R. J. Reynolds (Camels), Liggett g¢ Myers (Chesterfields), P. Lorillard (Old Golds) saw their earnings reduced from the previous year by 30 per cent or more• But Philip Morris &Co.,which was, to be sure, a pygmy among these giants, at the end of its fiscal year in March, 1934, showed the largest profit in its history-a little better than $50o,0o0. An increase in consumption aml a price boost in 1934 enabled the big fellows to put back a little flesh, American's gain from $t7,0oo,ooo to $z4,ooo,o0o being much the most intpressive of the four. But when March, 1935, came, Philip Morris, while still a pygmy, had tripled its previous year's net and earned over $1,50o,o0o. Last year two of the giants showed declines, ortly Reyno!ds attd Lorillard registering gams o[ i~ and ta per cent. But at the end of this month Philip Morris will be found to have in- crea~ed its net by about 65 per cent. And while by Camel, i.uckv Strike, and Chesterfield t i-.arette standards it is still a p~ny, the Philip Morris ciga- rette is no longer a pygmy by comparison with Lorillard's Old GoId. The Lorillard Co., which i~as assets of $6'., ,o0o,ooo, showed pmtits of over $3,o00,00o (about 5~.35 a share) and sold 5,5oo,- o~o,o0o Oht Golds in 1935. Phil- ip .Morris, with assets of $9,5oo,- ooo, will earn in this fiscal year S-",5oo.ooo (about $6 a share) aud sell 3,5oo,0oo,ooo English Blend cigarettes. The Old Gold cigarette is ten years old and has had some $25,ooo,ooo spent on it in advertising. The new Phil- ip Morris cigarette is three years old and has had about $2.5oo,ooo spent on it in advertising. Old Golds are generally avail- able at two packages for a quarter, Philip Morris costs you fifteen cents straight. All of which has made Philip Nforris something of a nine days' wonder in the tobacco bnsiness amt Philip Morris stock a favorite with the wiseacres of Wall Street. Its 415,0oo shares have already gone from a t935 low of 35~,~ to more than 7° as this is written. There is of course no reason- yet--for the makers of Camels, Luckies, and Chesterfields to worry about the threat of Philip Morris. Entrenched behind sales of a little more (Camels) or a little less (Luckies and Chesterfields) than thirty-five billion cigarettes, they can watch the pug- nacious newcomer with aloof or even kiudly interest. But it is not Philip Ntorris's t935 sales so much as their rate of growth that is really interesting. Sales in January, 1935, were at the rate of z,4oo,ooo,ooo a )'ear. Sales in January, r936, were at the rate of 4,ooo,ooo,ooo a year. According to the last Fo~cruNE Survey, published in January, 1936, from finding* gathered the previons October, there were in that month more men and women whose brand was Philip l,J,o,~.J#,j I~ Fol'rv..lz I*j lOtb~vd ear~ ~'%og BE'I-WEEN AUCTION AND FACTORY: A TWO-YEAR SLEEP Lea[ tobacco improves in flavor with age. It costs Philip Monis twenty-fi~e cents per thou,.and-pound hogshead per month lot storage-which is just one of the reasons why the manufacturer values the tobacco content of his cigarettes at more dlan double what he pays the farmer [or it. Morris thau there were smokers of Old Gohts, ahhough Old Golds' gro~ sales for the year were bigger In any case, growth from a rate of zero to a rate of 4,ooo,ooo,ooo in three years, with no promotional expen- ditures not paid f.r out of cunent salet, is already something of a record in the ciga- rette bnslness. V,'nat the Philip Morrls Eng. lish Blend may do from now on is anyixxty's guess. I~ UNCHING a new brand in the ciga- rette industry is much like picking a number at roulette. In t922 Dr. John B, 'War.son. at that time employed by the J. ~,VaherThompson Co., determined by clini- cal tests that smokers have little or no ability to distinguish one cigarette from another by its taste. Tim many blindfold tests of ciga- rettes madesince then have for the most part supported the behaviorlst's demonstratton. So yOU caunot Will a big cigarette market on taste alone-at least no brand ever has. No matter how skillful your blenders and chem- isu. )our package designer, )'our sales forcei your advertising agency must be skillful too2 And esen then the odd.s are against you. The otlicers of the Philip Nforris company attme have at one time or anothe17 tried to launch or push fifty different brands of eig'~*'.: ettes on the American mar~etl Some of these hase paid their way for a time, sonic have not. One of them (Ntarlboro) ha~ continued to earn the corn* pany's annual dividend of St per share ahnost singlehanded tor ten ~ears. Another (the ten-cent Paul Jones} main- tains sales of oxer a billion a ?ear but doesnt do much t'or the companys, profit. Only tht tlnee-~eat-oId English Blend has becalne what tobacco men would corrsider a big-time cig- arette property. The Philip Morris people down at II9 l'itth .k~cnue, New York, call gi~e you a number of hind. sighted explanations for the success of tire English Blend. But these reasons would afford little or no help to any tobacco manufacturer who would like to know how to do the • 1o6 • t" 0350224.
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j - TOBACCO COMES HERE FROM A SWEATROOM AND GOES FROM HERE TO A STEAM BATH The leaves are kept ~ dry as the bland Richmond air during their long humid room: i~ to t5 pet cent for Virginia bright and burlev h M~out right warehouse sleep m that the~ won't mold. But when their time at the factory for "pulling-up" (above), The pullers-up send the leaves off ~n the traveling comta, they must be wet or they witl crumble in handling; and crumbs won't cages at the rear through a twenty-minute steam bath so that they will be make a cigarette. These piles have just spent a week absorbing moisture in a really moist (to per cent water) for the next operation: stemming. trick himself. FORTUXE presents them not as dogmas of StlCCess, but as sitlelights on the story of a comparatlveb,' small but increas- ingly interesting corporation. THE beginnings of Philip Morris g: Co., Ltd. Inc. are somewhat shadily entwined with the story of Tobacco Products Corp, Tobacco Products was a kind of corporate scow. which the commercialb/late George J. Whelan built himself the 3"ear after the dis- solution of the American Tobacco Trust in 19tl. It ~as his appment purpose to pile into Fobac~o Products e~er~,thing he cl}uId salvage from the wreckage of the Trust tltat was not already in the larger vessels of Liggett g: Myers, [.orillard, Reynolds, and American. During his )'ears afloat Sir. "Whelan managed to put aboard practically every unattached brand of cigarette in the business. Tobacco Products also became the holder of a majority interest in Mr. Whe- lan's United Cigar Stores. Tobacco Products' fi~t acquisition was the blelachrino business, of ~ hich two sales- men named Reuben Morris Ellis and Leon- ard. Burnham McKitterick had been making a conspicuous success. T}lev acconlpanied Meladlrino into Tobacco Products as Vice Presidents and stockholders in t9~2. After seven years o[ quiet scavenging, Mr. Vehe- lan's scow in t9t9 overtook the American business of the English Philip Morris Co., whose brands at that time were English .Ovals. Oxford Blues, and Cambridge (com- monly called "Philip Morris") cigarettes, the first a blend and the last tuo "Ftnkish luxtnies. A new corporation. Philip Morris Co. Ltd., Inc., waa ~ormed to acquire these brand.% and its stock was bought not by Tobacco Producu Corp. but by Tobacco Products' stockholders, among whom were Messrs, Ellis and McKitterlck, From that day Philip Morris has been a non-British concerti But its ittdependence from Mr. \Vhelan was not so easily won. In 1923 after a nolllber of other lesser acquisitions, Tobacco Products suddenly dumped all its directly ownett mamffactur- ing contpanies--among tht'm -~,[eiachrin, o-- ill a 3Z 5oo.ooo-a-year ninetY-nine ~ ear lease to the American Tobacco Co. Mr. McKit- lerick thereupon retired for a sexen-~ear vacation in Europe. For Mr. Ellis. however, the complicated Mr. V~'helan had other plans. He made him President of Philip Morris & Co., which ~as then earning arotmd Stoo,ooo a year. Mr.Ellis's first move in his new job was to latlndl a new cigarette ira the twenty<cot field--,Marlboro, x, hich ~,;,s bo:n in Ianuarv t9.o5, told 4oo,ooo,ooo in its litst two ~ears, and then began to lag. His seco ~d move was to give it an "ivory" tip, which at once be- came the principal reason why people bought Marlboros and has held this brand at a profitable volume of something under 5oo,ooo,oo0 a )'ear ever since. Mr. Ellls's third move--in t93o--was to lure Mr. . 1o7• RT,'KOI 0350225
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I i I . i IN RICHMOND WAREHOUSES THE WEEDS OF SEVEN BIG TOBACCO COMPANIES REST SIDE BY S1DE THEY KNOW LUGS, CUTTERS, XANTHIA, SAMSOUN The four wi~ men of the Philip .Morri, blend are, from left to right. ~S'irt H. Hatcher. Clark T. Amea Jr., Jehu E- Archbell, and Edward W. Dinwiddie. Mr. Dinwiddie. the lactory manager, has been a Richmond tobaoco man sinc.e t9o6. Mr. ,~m~e*. his amiatant, used to run the Stephano plant in Phila- delphia. Mr. Archbell bu~ Turkith, an art he |canned during hi* ~eventeen years in the Near Eale for American Tobacoa. Mr, Hatcher buy* dome*tit. McKitterick back from the pleasures of Europe, But between these moves was sandwiched a sh]m~d and watchful immobility, m "Fhe officers of tile Tobattu I'tudtlcts (?on p. were divided intc, | two not ahogctller compatible types ot mtm ()no ,~i()up. led by I Mr. D,'hefan arid his brother Charics. was interested ill tile tobacr.,,O | business mainlx :is a brcedin~ 'ground for the proliferation of new ! corporations ~ith ~ hich t,~ hemuse and excite the stock market.¢! Ihe other ~oup, It'd by Mr EIIN, consisted ot men who had lung made their ]ixht~s b\ selling tobacco and. ~ished. to continu.e ! making them that x~av. In lqtd a dap, destii~e ilirtation between XVhelan alld the I)axid .\ Schulte lgtoperties bc~:ux to come 0ttt ill tile OpelI. "I'o [lltlHl/ilize sortie of their interests, the two cltatiiti store tycoons ft}rmed Philip .Mov]is Consolidated. ~hich was to ben - ~ holding contlpilnlV ~I!l S, hLxllc s (:,mliueutal Tohac,.o (k}. and f6} PhilipMonis:~:t.M I rd.. lnc . thvough an exchange of stock. Phil~p Morris was expec ted to bcIleltt trOtll Continentals plant and manu- facturing personnel, and the brands of both compames ~ere ex. pected to finti all e;l~,X load tl) DIi~)IiC ~;iVOl thlotlg!l the ( Olllb[D.~:%~ i United and Seht]lte (hains. Ibis dead ~q~cned the first visibi~ | fissure ill the Tobaccr~ Pt,~dutts i lair. It~r ~hile the Continental shares came into t'hifip .Morris (~.rlsotidated x~itilout hesitation, %~Ir, IVhelan's preoccupation wuh t/re stock matkee ts wet~ tne:~u*ed b? I~ea~is Cox in Competition in file American "l'obaccu lndust~, Columbia Uni*.~crai~ ....... P ess, t933. HIS ltatur~ as a merchanc.:llrlg marl may b~ i, udged from a d~scri~ lion he gave ot his conduct o~ United C*gar Sto,~ ~ in z9~7 ('They Told page ~17): "The di~iculty was to Interest tbc clerks . . . to irtcreaa¢ the .q man would be mtisfied when he had ,~5o ur $0o a week. Cut hi~ percentage and he would increase the sales to get back his weekly wage and to ave had to keep cutting the ~¢rcentage o¢ l'ntrrest to increase the sales." • 108. | t -! RT:.~O "1 0350226
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PRESIDENT L. B. McKrITERICK Mr. Whelan could scare up only 37 per cent of the Philip Morris & Ca)., Ltd., Inc. shares for tbe new holding company. But Mr. Whelan was soon off on other tan- gents, forming Union Tobacco (Tareyton, Three Kings), joining with Schulte in a grandiose cigar combine, opening drug- stores, buying into Beech-Nut, Life Savers, American Safety Razor. By this time Mr. Ellis and his friends had become far more interested in the possibili- ties of Philip Morris thai] in those of To- bacco Products and they set about consoli- dating their interest. Early in 19e9 Mr. Whelan's ventures collapsed into the hands of George and Frederick Morrow, Cana- dian financiers. Mr. Schulte's structure for its part began to tremble the following year. Mr. Ellis and his friends now re- inforced by Mr. McKitterick. tllereupon quietly absorbed all the stock in Philip Morris Consolidated daat the Morrows and Schulte were alike throwing overboard. By 193t they were in working control of all three atliliates-both the Philip Morris com- panies attd Continental. the latter adding a factory, the Paul Jones amt a few lesser cigarettes, and some pipe tobaccos to Mr. Ellis'~ line, which up m then consisted of Marllloros, English (.)val~, and the expiring Turkish brands. Later Tob.~tco Products sold its leased brands clutr/ght to .\mcrican Tobacco for $37,ooo.ooo; its United stock was sold for sixteen ('ellis a stlale: and tile old scow was ready for beaching. BIll the Ellis group was now ~ell away with its new crit~t. \Vhen in 1934 Philip Morris Ltd. hought tlom I'hilip MorrisConsolidated the assets t,I Conthkental and dissolxed both the latter t orpt)i;Itil/ItS, t!'~e integration arid hi- llepcl~tience ot P!litip Morris were complete. REUBEN ELI.IS used to say that he hoped the Philip Morris compan'/ would never become so large a manufac- turer that it wmdd lose its personal totlch with the tobacco dealers. (There are some 6oo,0oo of them in the U.S,) It was his boast that lie could cash a check in any tobacco store in any city o[ more than 50,000 popu- lation. He placed a high value on the friendly relations with the trade which he and Mr. McKitterick had built tip through thirty years of handshaking and which re- main today one o[ Philip Morris's most dis- tinguishing characteristics. They learned the friendly technique when they sold for the Trust, they turned it to account when they built up Melachrino, they perfected it at Tobacco Products, and they put it to its most brilliant use when they launched Philip Morris, Mr. Ellis dropped dead in t933, but hit theory of friendly salesman- ship lives on, not only in Mr. McKitterick. who succeeded him in the presidency, but also in most of his eight vice presidents. O[ these eight, seven are former salesmen, six are currently sales managers, and five came to Philip Morris by way of Tobacco Prod- ucts (or Tobacco Products Export Corp.). First Vice President Otway H. Chalkley, who was born in Richmond, Virginia, is the only officer with a leaf.buying and manu- facturing background, a distinction that creates for him a special welcome among the factory heads at Richmond when the vice presidents come down to look over the plant. Vice President Martin J. Sheridan, in charge of advertising, came to Philip Morris by way of Continental, but it was his many years on the road (he owned and sold Barking Dog pipe tobacco--"Never Bites") SALESMAN R.OVENTINI rathec than his knowledge of leaf and blends that recommended him to Mr. Schuhe when Continental w~ formed. Mr. Alfred E. Lyon, who serves as head salts manager from New York, perhaps exemplifies the qualities o[ all the remaining vice presidentS. Ex- traordinarily affable, he is valued for his ability to win over jobbers, dealers, and night-club cigarette girls with equal success. In t932 Mr. Ellis's Fmsture toward the cigarette market seas a stladdle, fie had VICE PRESIDEN'fS ALL, SALESMEN ALL BUT ONE: THE P. M. GENERAL STAFF • . . who are, from left to right, Norman E. Oliver, Martin J. Sheridan, William F.. Liebetrau, Ot~a) H, Chalkley, Alfred E. Lxon, John J. Switzer, and William C. Foley. (Absent: Vice P~.i~i, rtlt T~tomas F. Gannon.) The picture or~ the wall in that of former President Reuben M. Ellis, deceased. • IO9 • ¢ r :40 "1 03 5022 7'
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HERE TOBACCO LOSES ~5 PER CENT OF ITS WEIGHT The stemming machine at the right is a very recent inwndon and separates ~.SOO pounds o! stelm and leave1 every hour. But it doesn't catch all the stems: philip Morris still employs 15o N~ to complete its work by hand. The Negresses get twcHe cents per pound o[ stems removed, average $12 a week each, and chant exciting ad lib harmonies while working. From them the leavt,-s--now called strip,r-go to the blending table~, where the various types and grade~ are mixed in highly secret proportion. two suhstantial sellers: Marlboro and Paul Jones. Marlboro, on which he made a wide margin of profit, had apparently reached a volume beyond which no twenty-cent cigarette can ever pass. And Paul Jones, whose sales were soaring toward 2,ooo,ooo,ooo a year (as told in FORTU~:E for November. t93~), was at ten cents contributing little or nothing to his net profits. He was convinced by the end oI L93a that ten-cent cigarettes, like the roll-your-own nu~ement that accompanied their spectacular rise. were a fad that would "tend to die out as an increase in business brought an increase in nickels." What really interested Mr. Ellis was neither Marlboro nor Paul Jones but the fifteen-cent field between them, in which his company was not represented, but in which 9o per cent of the cigarette bmine~ was normally done. He had in fact experimented with this field as early as tg$t, bringing out • 110. a brand whose name--Unis (pronounc~l Eunice)--was possibly not the only r~ for its prompt failure, but was surely re~- son enough. Mr. Ellis was convinced that fifteen cents was the optimum price cigarette, giving the soundest balance tween volume and profit. In abandoni~ this field for odd-penny price levels the Big Four were apparently harming their dis- tribtttors more than they were stimulatit~g their consumers. The time seemed ripe. So in January, t933, the English Blend, fifteer~ cents straight, was introduced to the tradc~ BEFORE the first package was sold ther~ were already three good reasons why the new cigarette could expect to dick. One was the fluid condition of the public taste in t933. Many a smoker had been uprooted from his habituation to the Big Four by the money-saving appeal of the ten-cent and roll- your-own brands and also by the medi~ novelty appeal of the smartly advertised Spud. Wherever the public taste was te~d- mg, it was more than usually willing to experiment on the way. The ~,cond reach was the prestige of the Philip Morris name, which had been associated in the U.S. with expensive Turkish cigarettes for some thirty years and vaguely suggested class even to many who had never smoked an Oxford Blue or a Cambridge. The same sepia imita- tion-wood ~mapper that had dlstmgu~d the Turkish brands was selected for the new package, and the opening adverti~mcalt~ "Philip Morris NOW only fifteen ~rtu~ --certainly helped to conceal rather than reveal the fact that the new blend was wholly different from the old. The third reason was the fact that Mr. McKitterick and his salesmen were determined to maintain the retail price of fifteen cents at almost ally co~t, To appreciate the importance of this, must know something of the condition of the tobacco trade at that time. Although the Big Four companies b.av~t divided most of the tobacco-manufacturlng J R T ,',ff 0 I 0 3_. ,.,., ~ n '~ 9 B
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business hetween them ever since the dissolution of the Trust in 1911, their tyrannical domination of the retail end of the trade has been a comparatively recent phenomenon. Until after the War the manufacturer depended for volume on a variety of brands, covering every price line from nickel chewing plug to Turkish cigarettes and $i-a.pound Latakia pipe tobacco. To sell so variegated a line required a great deal of co6peration from the distributor, for no single brand was strong enough to sup- port the $1o,ooo,ooo advertising campaigns of today. Thus secret discountS, free-goods deals, bonuses, and wlde margins were until the twenties common practice throughout the trade. It was possible for a tobacconist to push one brand as against another, and it was therefore possible for him to make a living, z~ a natural extension of their kindness ton'ard the dealer, the big manufac- turers often showed a genuine interest in helping him to maintain his prices against undercutting outlets like the Liggett chain. But the huge increase in cigarette consumption since the V~ar, com- bined with the huge increase in advertising appropriations since t9~$ or 1924, has year by year reduced the manufacturer's solici- tude for the distributor. By 193o three brands-Camels, Chester- fields, and Luckier-were doing between thena about 9° per cent of the cigarette buaine~ and (more important) were accounting for about three-fifths of the net profiu of their respective manu- facturers. Concurrentb/ these companies had been developing a surprising unanimity in their prices to dealers and an indifference to the prices at which competing dealers forced each other to r~ll MACHINES DO THE REST The blended strips are sliced to shreds at the rate of 1,7co pound* m~ hour by a rotary cutter. You could smoke what comes out of the cutter, but ~'ou don't get a chau¢e: alm~t all cigarette tobacco is sprayed (a~ at the right) with • flavoring solution ~ho~ ba.~ is good cheap New England rum and whose other ingredien~ are J~nown only to the manuheturer, After a few days' rest, the flavored tobacco now tumbles through Kxeens and past magnets (to remos-e dirt and nails) into • $7,c~o machine that pouxl it into an endless strip of pap~ and prints, roIh. pas~es, flice~, and piles tome twenty cigarettes every second. A SECRET: WHAT'S IN THE FLAVORING BESIDES RUM? THESE NEW MACHINES CONTRIBUTE 5co~oo CIGARETTES A DAY EACH TO PHILIP MORKIS'S NEW VOLUME • Ill • .g R 7-;~01 03~r'~;)-'.
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tile brands. Tile Big Four, ill their trade relations at any rate, seemed to be competing not with each other but with all forms of smoking and self-indulgence other than fifteen<ent cigarettes. At the present list price of SBAo a thousand, less the standard discounts of to and ~ per cent, and the present retail price of two packages for a quarter, the jobber and the dealer split a margin of less than two cents on a package of a Big Four cigarette. Ever since the A & P chain started selling cigarettes at cut prices in t927 it has been difficult for any distributors to increase this dealer- jobber margin, although prices themselves have varied consider- ably. With leaf prices failing, the Big Four astonished the trade by "abruptly raising their prices together, in June, t93t, front $6.4o to $6.85 a thousand. They returned simultaneously to $6.4o in 193z, dropped to $6 in January, t933, and to $5.5o the follow- ing month in an effort to stamp out the competition of ten-cent brands.With the A g: P selling Camels, Luckies, Chesterfields, aud Old Golds at ten cents a package, the average dealer's margin was elintinated entirely. Tl~e long-stnoldering hatred of the jobbers and retailers for the Big Four now burst hIto flame; accusatlotIs of collusion became more and more audible. If the advertising- fattened Big Four were not a trust in the legal sense, said the retailers, they were worse than a trust in any other sense. "I-hey had perverted the sound principle of low prices and large vobnne to the point where they were getting their distribution for vir- tually nothing. It was on this scene that the Philip Morris English Blend made its bow. pII1L1P MORRIS was offeled to tl~e trade at $6.85 a thousand (less 1o and z per cent) and has yet to be offered at any otheT list price. At fifteen cents retail, that gives the jobber and the retailer a combined margin of $.o29z a package. (In practice the average job- ber takes only $.oo4 of tiffs margin, the retailer the rest.) It was Mr. McKitterick's firm intcttt to maintain this margin fly refusing to sell to price-cutting outlets. To affirm this policy and attempt to ~ain nationwide distri.bution at tile same tinte obviously demanded a large nteasnre of selling tinesse, and it was in steering this course that ME McKitterick found reason to be glad Mr. Ellis had sur- rounded himself with tobacco salesmen of the old school. Philip Morris h,l~ 5,ooo jobber customers; Mr. Ellis was good old Rut~' to practically esery one of them, and Mr. MeKitterick was (and is) [¢ood old Mac. The English Blend was placed tenderly in the hands ot the jobbers with the highly personal understanding that it was Rube's and Mac's baby and that if they lo~ed Rube and Mac they would not allow it to be sold for less than fifteen cents. 1[ a jobber or a chain-especially a large one-returned a gl:csay stare to this propo~-d, there were, to be sure, 5ome 8,ooo shares of connnon stock earmarked for customers at tile friendly price of $1o a share. But the great majority of distributors ba~e been kept m lille atnto~t entirely by Philip Morris personal salesmanship. Good old Rube used to send a telegram of congratulation eveo* time a jobber't order showed any increase over his last one. Browbeatin~ tattles. with the iobber's help, have occasionally been emplo'¢ed against price-cuttntg reta ers, but only in cases wbere Christian entreaty has proved of no avail. Head Sales Manager l.yon, the embodiment of the velvet-glove technique, likes to dwell not on the recalcitrants whom lie has had to threatett but npon the contrite cut raters who. after a heart-to.heart talk. tell him, "You fellows are too square to get a deal like this. I'm going to put the price back up, Mr. Lyo~, and leave it there." The effect of price maintenance has of course been to make Philip Morris a favorite with all retailers and e~,pecialty with inde- pendents. A retailer cannot take the time to recommend the Philip Morris to a man who comes in for a deck of Camels: but he carl give special preference to his favorite in counter and window display [Continued on page r141 i IF TIIE SCALES ARE KIND TH[" ()I'ER_'VI-t)R CEIb A BONL~$ lhe i~[)[~tllUlll rang~- of ,t cigarettes l~('lgh[ ts [)Ct~Ct'Ft ~,~f:'lt)' [OL!!e ~n~ Ii half arid twent)'-st-~en and a half 1o the at|rite. [tevoild tho~.e ~.in~_xts the clg;Irett~ is sO heavy it '~on't draw ur so light the tobacco falls out. So Philio ),forlri!l machines are adjusted to make twenty-six to the ounce. They hit thls wright o11 the nose about 75 per cent 0[ the time. II the machines could he operated more accurately, it would pay to set them at tx, cnty.seven to the ounce, m~k/.n~ a lighter cigarette and thus h~.ving philip .xh~tr~s 4 pcr cent o{ its tobacco purchase*. The scales at the left weigh 8.0o0 individual ogarette* a da1' u a cheek on the acts|racy of the machines, ()thews (above) are measure~l for Si~, • 112,
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IContinued Irom page rz:] space, whi{h lie Idls with the mauufactnrers' illustrated "'dealer helps"either as a favor or for a rental paid iu cash or extra discounts. If the public had tnn taken to the cigarette, ut course, die dealer would quickly tta~e tired of pnshing Philip Morris, for even if his margin is o~cr a penny tvidcr than his margin on Cantels, it is still t{~+ small to nleall all} thing wifltout tUfllOs'er. Bttt tthatexer other reasous the public h:ld for taking to Philip Morris. the dealer and hi~ et edk-cxteudhtg [riend tile jobber certainly limped. It~ Feln ugtl y. t 933. the jobbers took I{I,t)l)t)a}oo Ot tile lie'++,' cigarette~, ht May t[lc~, were ordering eT,OOO,OOO, in July 4o,- ooo.ooo, and they hase been increasing (hell ordcts cser since. TttE good news that Philip Mortis ~;as catd~ing on cleated sonleth/ng of a stir in the old (hmtinenttal plant it( Richmond. uhc+e Philip 31olris cigarettes are malm- [actured. It was, nile of the factory men ob- served, ntudl as tbongl] a baby should be bl}lii ill ;Ill old tuaid's ltotne. Acctlstomed to the llltlle el le~s static "¢ohnne of tile ex- pensive brands and awaiting the daily de- cline of Paid Jones, the Continental men ~ere taken off guard, and Mr. l)iuwiddie, tile fact{ny ntauager, nearly had a nervous breakdown os er tile lmexpvcted production problem. Thirty new making machines attd (hilly new packing ntachines were bought and installett duriug ~931 and t935, and as a rceuh of these and other implox emcnts the Ki, hul~md plant is ttol~ perhaps tile ln,~t lmMe~ u. mudumhally, iu tile enmc tohac( o industry. It is tint a lacge plant: its book xalue {including real estate) is under St.- OIll},l}Ot}. il~, +.l}lllpaled l++ i[]l il pl;tnl and lca]- estate ttelll of SIlaJOO.OOO nit i+tn{llaul', Imoks alld 527,ooO.OOO q3tl [ igxett g: Myron's. Bla at present it is x~mkm~ onl', eight houts a da~ on Iilc Ensli~h Bteml and is cmtamh capable of lnaking ;ill the ciRa- tetlc+ Philip 5i,~ll is will be selling for some tiltiC ~l/)lff CO'if( Ihall [ilk" )lLl(ilille!v 10 Itllll {!tit ,t hi'= I IllC c[+sart'tlc i~, the tl}tia(co ilt- "~cilt/ll\. l".t,lt die ~tlt{e~,~ ol tile I(n:di,h l;lcnd did n~,t t:tteh Philip M,rtis :,dot p at this xita] .~,hch ~;:ls la]~ch ,mmz t{~ tke accidental b~l~,i~bt M D,ht I[, I{at~hc!. (ttlllie~[{~. leM htl',(T, v, ho had been tclllDlCll IIt' the I uino/tdx hnv prices of l!l){2 iltto lItlt+- Jna tin ec lime+ his ilOllllal in'venlorv pill el% as a sp~+ctlJ:ltixe Ineasnre+ Bs" 5cptclllbei. 1!I£12. h{~ ptll'Cha+,cs were worth donhle 'e+'h;it he had pMd fnr thctll. But by tile Sllllllllel Ot l!}~+,~ it ;~;tS ;ippatcl/t |hat lie nexcr v.olll{l '~+.'t ,i l!~2II(O Cr> ]I':lIilC lli~ pin{it. Ihc ad. \:lilt t" t+lc+t!tlt.'[+¢)ll e~titltate+ from New Yolk h.+*J + ++.~.x ,Jr MJJinM shmt of the :~ctuaI pro- dtlttiHtl ¢[elll/llld~, anll b\ 197~[ 3,li. l[at(hel was bu}ht~ :laaht m>t OIfl; at the priulats auttions but from the leaf dealers as well. The Philip Morris tobacco inventory in March+ t 934.was St ,5oo,ooo. lu March, ~935, it l;as SS+ooo.o<m. ~Nbich is not only a elite to l'hillp Morr/s's production expectations for tile next two or three years, hut is also an ilhtsttation of the importance of tobacco purdxases to a sttccessful t:igarctte+ If )ou are sclting a cigarette solely on price, as Continental sold Patti Jones. you can pick up wttate~er leaf is cheap and blend it as ptites dictate. But if )ou want ~eople to buy a cigarette for its taste-as hilip Merits' wants people to buy its new bratld--yotl In(is( bnv Your tobacco with ,'Ill eye to its t}pe raffler' than its price. Mr. ltatcher aud .]ehu E. Archbell (who. buys Turkish) nlu+t purchase such a eombina- tiun of typ(+> that next "~ear's Philip Morris will taste a~ neari} .~s po~dblc like last year's. Since thcle is an almost intmite nnmber of grades of emh of the three principal types of domestic tobacco, and ~ince I10 crop is eser identical xGth that of other }'eats. the bttyer+s task calls for a nice scrtttiny el ~,radcs and qtlantities. The pttrchases of M'css~s. /Iatdtcr and Ar{hbell are ntintts- Ct*le, Ill ~Utthe, compared with those of the Americat+. Liggett K- M+ers. and Resuohts colupanies, whose tobacco ins'etltolies are tlsnalls' alotuld ~lC~O.(too,ooo ¢.-ach and who to replenislt thellI ate [olced tO buy at practically e~erv tohacto aucdon in the country. Mcss~s. Hatcher and Archbell will tell ynll that be*au.e their smaller needs give them larger <to(ks to choose from (all attctions heine free', the tla~or <if tile Philip Morris blend tends to be more consistent than that nf auv of t~:e Big Three. The tl:Bor of a clearer(e, hox~ever, is hy lie means itrenlediabIy decided as soon aS auction d;tx i, o\er. .\ t~pital popular ++kllteliC+t+ blt'ltd c,q',~{~t', O[ :I]}OIU ">'~ per ccitt blight tcsba~cr! {;oln \'it~inia. t;c+q~ia, and the (late/trots. Q'+ per cent hurle~ Ireful Keututkv, 17> pel cent Turkish dtself a ])If lit] I>f tBe t~Dc,, anti 3 per cellt fast- huufing MaBlaild +xfrer thc~e ha~e all CONCERNIN{; THE FORTI-XE AWARD Ill its {>~tlI" 'q XLI4il*[, 15}~]5, FOR TC NF itIlfl, qH'.C~ ! [1~{7 e~till*~f~]llUcIit ill All ;1\~,11(! } r ;~(~liL'\CI!lCllt ill izi</t+qr+a] ,ld::2iP.£qrati+m all~! pl,) l){]sc(I {{),LIIID~IIF+uC tile 9{'/ ([)~(]lt ,~l the ,tward H1 :!:e ::~Oltth ot ]AI1LlaI\, hi their .I!!:;,ILUl~ CtllcIlt thc edi- (ors ;lCkllOWle~: £e.! the "prcstllnptiillt invoiced itt [ile e~orts to II1;lke an\ such selection." \Vhat thc~ c+mhI IlOt then ack:~m~ k+d ze--be( arise (!it'\ did llol kll~},, {t-~;~> t!lc {]u[)r>~-i biti:v ~}i mak'nz a cousidc]ed choice ot [He ~)l~t :¢:t::,icnt ill lilt 1D]:c whi(ll til,uv a~i, ttecl II~eul~cixc~ Faced with d~at k:tm~ lcd~e om~, Ihe edhors altllOLlIl(e that the aT:rid will ttOL t)e ntade tlntil they arc ~atislied that their judgments are properly seasoned by tinte. • ll4• becu aged, the burlev, which is air-cured atttl thcrehne delicic]{t in sugar, is dipped iU vats conta niIlg s rupy rl x re el lico- rice, Inown sugar, attd ~arious herbs, The other tobaccos dnclud/ug the "I'nrk/sh and some uudipped burley~ arc meanwhile sprayed with casJng-a ntixture of honey or maple sngar and a hygroscopic a~ent (o[ which more later). Bnt not until afler the tobaccos have been tnmblcd to~-etber and cut into shreds do they get lehat is kllOWFI as the flavoring. "l-his comes at then't frol'tt another spray. It is a sohttinn whn~e base i~ I tlnl. hut which (nay al~J con(air1 e'~seB¢5~ 0{" chocok~te, sanii1:t, tonka+ eomnarin, sherry, peacll, ,n:m;se. ge+;mium, and attge!ica, Oddly enough, these exotic flavors are ,,,aid by tubacco tllCn *tot to bc detectable in tile smoke of yonr cigarette, bnt cotltribttte chiefly to the smell that is re[easeti whetl you open the package. The tlavmin~ hmuula (if any cigarette. like the b~end, ix a guarded secret in every plant. There is undoubtedh" a gerterous nteasute o[ superstition JO t!lJ~ secret+)', the ingtcdients of any cigarette being vastly nlor,2" iinportant tO it~ Inailufacttlrer tllan to the taste of the most knowhtg, slI1oker. In one respect, howeser, the Philip .",lorri~ formula is hnlmrtantly different from that of any of its contpetilors. Tttls is the hywo- se+}ph: a~ellt, ;vbitT}l We noticed above as an ingredient of the casin,., TIIE purpose of a IB~ro~op c agetlt it; tO attract anll r{'tait moisture ill the t(~h;l{co It( ll]OS[ l i~[llCtttS [~i(" hv~+~ros~opic agent is gl)cerin. But M~. M{Kitter c.k had heard tell {}t a Celtailt t.!lHIl~iex Ot'~3tt,+-t~ dlenticat-like %l'.cerin. one (;f the h|~hmr ntelubczs ot the ~amilv ui alcolto/~,..~alled dicthxh,nc, ghoul. +'I.u{J he had aim ft~t'd that it had ii)(}i'e ]ls+~l!l<(C}!l}l }-a)l~et' tttall tile ~l~{etin (ff ~hnh i~ i, a d:.I,ua let(tire. So tar as i/e (t}uld !c:t~n. it ];3d never been Ilsed £11 the I1KIllLtfact[lle Of ciaalette~a ~ ptescntell tllc i}r{}hlcm tO the Itew cb~IV*{$t el+ his Ri~hmol.! pt,mt Dr. Richard .~I. Cone. ,,,h,} told iron that d]et]iviette ~|ycoI X~ tX II~ ~[ <!11]~ TII')I t' [1; L~r,~{ ¢:F,i(" t}};]it TiTter- ill, }}111 ",~ ;IS ,lt}icr~xi.e ,,llt~t-:i : ~e) ,,]','e~T~[1 ht that it was (fletlti{:dR i:~tu',ai~]e of g}Vilt,g ~dt [tl < ~qI:l}usllol] :ill ill ]i.iHi kiloW11 as aero+ loin. Mr XI< Kittcrhk ~hctct:>,,o ask{d Mr, /)in~/d:lic t~ male up ~ l*,:/h ,ff t:i~trettes cased x;ith dietil;lcne ,,!,,,~,~ The nleFi at IDe fa{tolv pr+m+*ml¢c¢i t}:enl mild all{] l~alatahh', arid 3+[~. XhKi[tmick begatl to use diedB lcnc ~,]~col m~tead c,f glycerin ht the l£n~li~h Blend. lfe suh,equently made the s~xitch i11 all his other hr:mds. Xfr, 3fcKit~{'ri+ k Tl,'xt +'m',~io~ed a fir;B {,t ,hcnli,l~ \Vci-Ler4 x t,:c~.t!;',~aid, Inc.-- 1~ lie (r~ll[}tlll(,~! I)c. C~ !lie', ,¢~t¢~rnettts at:slut diuth\]cnc :ah~d, and ,+2~ S~:ptcmber, t~8~+l, the r;l([h} ,.'{munercial~ were t ecotlllriel'~dm~ that you '" )lay safe with Philip Morris +~lld a~oi(i all chance of acrolein." But Mr. M{Kittcrick did not stop there. With the help el hi~ banking frieml H. Walter tllu+ ntenthal ,,f Hallgarten & Co,, he prevailed [Conlin++ed on re~ge 116] R 7",RO "103 502 3 "1
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Yomlg & Rubicam Prepares AldvertisDlg for these Co. anies and Products .~CFj, .~,-sco C(~RpoI~ATIC'N ,t.~.fa photoI(rapMc materials aud equipment+ L~Je In~l*r,~me H'eek. BlssEi.i. CARPET SW£EPEII COMPANY I':a~le Brand and otker br,;na'~ ~.f con- #~#,ed rail:(', [~Ord'.~I[':" k~:'<;p~r~cted 3lNk; K~'tm ,mdotke, po~dereJmU~.; Bordeu's M,i]led .lti!k: Ckee,e lh:i- .~ian; Th~mp:,,u'x CAeca[ate Ma#ed MUk; tIorto.'x Ice Cream; Xo.e Suck 3Iluce +lie,t/+ B~is r.l..Y, lv~ ~.s (,_'~)'.1 F' '. ". v ~lDlit Re, b; ,¢<~s [ltpati~ a; lpan* T,,~,'k I',*,'~# ~rmilo ore", . l. ZetcAer': C.titoti,L £',zb~ 7'~,,u . .ltt'rt~'A ,$]itt~ . ~'£:il'lo Cra:'ats. {,'El > ~ COMf't%'y £ ;rip I"'a4N KbHRT [)l~rlt i F~L5, INc. /-~o" A', e:. ,),,:l V It . 0,',.; ~'J <,, umct :;,(iu7 1'~'~,~',',. /L~er,' I, ,~t,¢ : "~!: ,, '.'e T,,o~, ¢ : H',~,ge, [; ,,:e~" (':,,,::..re ] ernest, /¢~'," <'e ~,; te,~ [-<,,;,; ; ,~'<~i,;<~ : ,¢<;[ ;:i~: ,<J :,,±. GULF REFINING CoMr'4xY Ge.f Ga.wi}nes, Ot£ and Od Product,,. I~T~tV^rlO~'~t SILVE~t Coxtl,~v Ixvv.s r,~.s S~ y e.lC,,.v r. P: :D,', t)r¢.tx,ctr¢ Red Cr~+r ])*:tsion. ~h,l,~:.. k',~l',n~ ITI,lY %*'aTl~)Xa, .qvv,.~ /~F)-s',~x{; C~a~tp4~ t 7., (" F,. t " ,7' ~s ~, ,;~}e~ u 7"] r,'et ,a*m G,~,,~zc. "I'~t~ R~rH I' ,.c..~<; (-',aal,:,xv tte,et [bu,,:,* e [ ~H~:, Ct,;, >Vr,~:: R L t;I CA,M, INC. .... .-., ,:j • 1I.] • 87N0! 0350, q:, ,
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[C,,mim.'d Imm P'W" u II upon Dr. Michael (; Mulmo~ of C,4unl- 10ia's Depalunent of Hmmnacolu~y to dcxise al/d perll.qtll tests on ihe irritant properlles of his cigazettes. Philip MoNi~ was m pay all expenses, but Dr. Mulinos insisted on free- dolu tO publish tile results, g,)od or bad. Dr..Mulinos and his assistant Ravnlond I. ()dmlne thcreup, m ligged up a smoking lllill.]lille, dixmlving tile sllloke in water. The~ pNt a few dlol}s O[ ihe sllltltiOll tltlder tile e~elid of a rabbit alld noted tile con sequent swelling. The resuhs .f their nora- dons were published in the I".Jceeding* oI the Society, lee Expe.Hmrntal Biology amt Medicine in 193 t. The largest and 1,ingest suelliugs, it appeared, were produced hv s.luti*nlS honl glycerin-cased cigarettes.The ti'a:lictit'S ca~ed wittl dieth',/lene glycol not only produced less average swelling than tile ~lxcelin cigarettes, but-mirabile dictu -[e~s su tiling lhall cigarettes c0ntalrlillg no tl?gH~copic agent at all. This ~as ahnost more than Mr, McKit- tcIitk had bargained for. It suggested a tanxled hhttelland of possibilities in which the ileal little acrolein stoiv uas ollvioudy g~till7 to get lost. The aclc4ein StOly was therefore witlldrawn from the adveiti~hlg, and Dr. Mulinos was subsidized Ior [urther explutations into tile complex properties ~4 ~nlok¢. whkh explolations ;tie still in in.~tcs~. Meanxdlile Dr. Fredelilk B. Flinn. al.,~ ol Cohnnbia. also subsidized, colletted thlollgh sl;llle higllly anollXtllOtlS [)tacti- tioliels enoug[I clinical evidence to make a pal~el in Tke La~yngmeolle. indicating that cli~ th', lent Xl~t:ol (i~;lleltt'x t ~lii~e ]c~q thl(9;it tttitati~lll than Hthels. Nil. ,~,h Kitlelit k cilso l:lq xt';ll llll(]t'rlllllk tile 1llaiIltt:llllllle Of a tHt!,lt(II le~earl h felhmship at the .%lellnn In,litntc. .\ltogether lie Ila~ ~pellt aIlouI half a million dollars in tile pa~t two yeats as a result of his t:}luice nf l/',gr, l~x~qfit a~ellt. BUt Iliit all of this ha~ 'rfllle into re- ~l.'alltl %, ]al~t" pdlt f)[ it h.l~ htTit ~pelit <ill ;I leqli<tt'd ;lltd illtt, llSixe I;lllll);ii~ll Of CX p[Is{t ;liiOll ~l.*tl ale IlOt silpposed tO kllliW about di- cthxlclae ~]~t<~l utile% ',lni ;tie :1 d~!( till', l!,tll II x(lll <lit. il (ilK[eli' %.,!{1%i1] heal a~ itttlzll all, lilt it ;l~ x~l t~.allt to ab~olll ',Villald P (.1CClI~;Ild. ~,lh,i is lliiw l'hiii13 Xl,nliss hc.td le~t:Atlll all, t llleditrtI (¢)lHaC{ illai/. I~1~ ~i[It'( th I milt hod ;Ihnut ]tall tl~c do( t~l~ ill the tiltlllil% ~il]l Ihe StOl~. tit' and his Illlle A~Sl.,l.illln attend pt:l~ticall) exel) iIl,t[~l t(lllXClltiOil tit nledical lilt'it Oil Ihe t;iLcrill.ll l'ht't halld (lilt ;l% lll;lil/ fleu p.t~ k.i4c~ ot l'hilip Mnrri-~ ci~aicltt's ;1~ the tLHItHI~ '.,'{il I;Ikt:. 1-11~'~, talk t~ fill', fIilit(ll ~lhli ]Lille, t% ;it their II~)()th. explaitl tile Xhili,l,,* t'xpclhncnts ~itil charl~, and i[ he ~ll?lt~ :ill illtt'it'M ill:It[ [linl iCplilltS (if }l;li)el~ l)~ \t'lliJllft~ alld FlilIII. [letween COll- ~.eillit!lt~ the\ Gill llu doct.i, in small H It~ll~, 7iS¢ Ilteltl leer" ~,lllilkes. altd di%t llSS hx~lo~c~qlic a~t'litS with theill. Aild all year iound Philip M.rris runs a he:ny schedule of restrained but pointed adxertixin~, in sonic forty medical journals frolll that of tl~e Anlerican Medical Association down. The nbjeet of all thi* pr.paganda is not only t. make d~wtors smoke Philip Morris cig.atette~, thtls settillg all example for im- presdn,lahIe patients, but also to [inplalll tile Iilltiiilg~ of Mulinos s,I stloll~l) in the nledical luilld that tile doctors will actually advise their coughing, rheumy, and fur- tongued patients to switch to Philip Morris on the ground that they ate less irritating. Some doctors do sll advise-how Illally, no- hl3¢1% uJlil ~,ilv. Others ielllain skeptical: tile)' poillt out lhat a ~)]titilltl O[ smoke is iIOt Sllloke, tiHIL rabl)its' eyes are not hlllllilll throats, that the clinical e~idence is under- documented, and that almost nott)ill~, is really known about the effects of snlnking --tile" COltthi~-iOll at whith FORTUNE arrived in its artille (ill alcohol and t(ll)attll LISt September. To the skeptics, subsidited le- ~earch is sobddized resealch idlether it cotues flora (Sdunlbia University el tile "testing kitcheif' of all advertising a,genQ. And yet it is prohable that Philip Morris has made itself more popular with lhe medi- cal pl~l[exsioo aS a whole thall alls other to+ baceo manufacturer. This popularity has beell Well ItOt SO Iltllth h) flee ci!aaleltes as by Philip 3.1oHis's ti'4kl refusal t. ad~clti~c the dieth)lene-gl',(ol story to the pul)lk'. Since i93t Mr, Mt Kittcrick has tlandled Iiis disr(~t t'l ) in uhat the (hitters call all ethical illallllel. [ {e ha, treated it as though it WCl c a scici~titic ral!lel thao a COllllnetfia] fact. lie ha~ kepl it a secret between Philip Mof ris aiId tile dt',ctors--|)eing aware. Ill) (llllitlt, that doctors as a class are inclined to dis- p:na~e any new informatian that their l)at iclll~ sh.it e. T[in~, ht'x~lI:d ;ISkillg tht'lll Ill hclit.,,e t]i,tt -wientilit: te~t~ haxc pi<)xeli l'hi[ip Mt)lli<, a mi]dcl" t i2arctte.'" Mr. McKitteriek has no desile t,> lell tile genelal public ;ih~tttt lii~ I/y:~t~)~l~q)ic a~ellt. But thai dtlt's ilHt lliC4il that Ihe ~enelal public is Ill.in2 ile~h'lted lit Philip Moii is. la.t year the COItltJilll~' spent Si.7oo.ooo on the ,~o11- elal plllJlit. 1:!,1,1 ot it Ihrough the Iiimv Cu, their :l(l~elti-il!~ a~t'llC~,, "]'o tile dutttw, I'hilip Mo~ri~ means dieth)lene ~HcnI: hnt to the _wnc~:d public. Philip 31oN i~ is .nnlc- th[II~ t;ll c*i,[t!" ~(t Llltders[all({ 41 ll(*!I[lil[) Till:. hek[h-n ,ml die slogan C.i[! Ir~i Philip Xh,~is date b,uk lo ;~ q~tu ]ll)Mt'l t1111 eli-A]~!~e~llt'ti ill lhe IPdi,'HClt'~ ~11]1 the (tetiiIIC ,d the t)xfHrll Bhle ;li',li ([alli hlid,4e }ll;iili].. xi%ht't/ the precipitate .ucces~ +it Ihe llvlx bl_~nd dictatcd the shih of MaH- b~llo'~ ladin ~ime t,) Philil/ MotHs ill Malch, t9;$3. Miltt)ll I;imv <oneei~ed l]le itlltiOll til;it ;1 hullt ill t,tice. (TVillg "'C.dl to~ Philip M~nli¢' l]lDlll.~'tl a illiClophlllle, xlOll]d ~i~,c the oH slo2an .+ill ilnllledia(}" that it tle~er had II1 pl illi Kelllleth (;uodc, who has 1)cell Philip Xhn ri,~ ad~ertisin,,.l' consultant since 192 t. elnhodied the poster idea ftntt:er iu a leaI llaTe I.~ in the original Eng]i.h lllli tarm. Inquirin~ at the Hotel Conunodore hlr "the hext bellhop ill New Ymk City." die two ad~erti.ing nlen were diretled to the Hotel Neu Yorker. Here they found John Ro~ent{ni. a dwarE • it6. John Rmenthli i~ n()w tuenty-tlve years old, weighs littv-[our pounds, and is [orty- three inches tall. tie lives oil Seventy-sixth Street in Br,oklyn uith hi~ father and nlother and strict ;uld twH hlnthers, aii o[ wll t t e ol normal height and all of whom John supports. He is also paying off the ntntgage on Isis mother's house. When Messrs. Blow and G~u~te |ound him, he was making around S-.5 a week as a calltxLv and was kllOt~ll an a ',ely gc~)d c;lllboy OOt Olll)' because ff s metallicalI':, sunnvdisp~i, tion but also tlet:ause of the remarkable carrying po~ er of his voice. When Messis. Blow and (;u,Me heard him gi~e his interpretation of their slogan, they hired hinl tor the pro+ ~ranl at" once. His call. ~iill no dlallge whate~er in timing, time. ~n nlodu]ation. has been heard on etelx Philip Morris bl~ad(ast since. .~[f. (.,(~.lde lvas tier Slow to devise (nller uses for .]ohnnie Morris. as he now came m be called. Other aim le~s pclenlptory lil'le,~ were wriuen Ior hinl in the tadici seript~. with a view to establishing his whole per- sonalits ill the public C(~llSdOUStiess and $O, ;is Mr. (;~uulc expl;till~ it. <leatill~ a lik{D.!7, tladenlaik..'%t the ~aliiC tillle Johnnle was ll;m*t¢lied from the "'last" item hl th@ wt'ek]'~ radio-talent bill m ihe regular ~'ly* roll ot Philip Mou i, & Co.; his photograph uas lilhogtallhed on a httndred thotisarld life-,ize eardb(;atd silhnuettl's fnr *tatiOI)" wide store displa?; ilc ~:[s hm,d nut with a 1{I lloks IlllitOllll, all \LI',t ill t at. alld a chRtlf- fl!llr, alld iv;is lalllldled 1311 :+i series o~: per- sonal appear:ul~es at public aud pri~ate ttillt tiOlls o[ exelV d¢~Tription llc~idc, t~eiomiin~ thch St;lieS. Johrmie's dulics huh)it the pui,Iic in~tude Ihe dis- st'tiliti;lliOll ill a faithire Philip Morris ad- '~elli*t'lllt'llt--the tt¢c >alllp]c. \Vhat Mr_ (;I t'en~;I]d ~llld hi% illt'll 2tt(. to the dcuTtors. Johnnie is to the world at 1,nRe--an alllba$- sa, h)r uith a polkctful iit la:zltl.app¢. +*%.11 ,)i Ihc -'75 I'hilip \l.~tq, .ah.~incn are Hberal (!{~[liillIIIltS !![ ,alnpie~ iil i[ll.ii" spare mo- lucuts. [)~ox idh*- x~ h;u the head olliee calls IWtls(lltleS (a pail o[ ( I~[IIC'ttCS ill a 17ardhoard t'n~ chqle) tnt k.Hed (iub iunche )ns. pl ::,| c llill,/t~ei,,and¢!lt:li!,,, qi, l!, ll~ ~ feot ~e IllliJl~l~\ lilt'till ,l~ d Hit'~IIX~- Ol llltro(t.tlC{tt~ a Ill'D, tll~t([tLi:t 2iil(l is ~l~llleti;ii12 wor~;e thall u,c]c~ f~ [th a 111afket ~ Htl }/;1% t' ~111 e;ldv ls'i:)ll, t ; C I : L ~ t the plC>elH q32e ,~t t'hiiHi X[ol-ris tics ~ ]~*[Hllcn{ ],,hnm< - ~;i:ii[)iitig ])rot,,'tgs$ is (lilt" II[ his ¢]tiut t.duc, to, tile tirm. A£ter a illl~lllili'2's i!r[xe ailqilld N[allhattall ill iiis t(ili~,[)it:tlHUS %.llStill. 11~.- 111,O. attent[ a hin- (]lt'I,II ,it a llsf{c .qS~,K[al[oII. at which he uill hc hl~ilud in '4~- tai, ,alI as lie i'msses oUt Ihe hcc 2~)(~ct~. MtCtllUOll rila'¢ fii'R[ him sanllllin'_' ills IcH-'., pa,~engers o:! d*.e tial11 to l)lli];ldtlphii x~ ]lttc' he is ra~,t-ilaps t:OIHlle(~ Ili1 [(i ,Ill)ills lhC ,i]lokes at ,a IE[iili!~'f ,,t the l',,,,i txt, h.ild Cnib. I lc may be [~tirld ;tl I]le ,)peiHll~ ~,t ;I (;lecn',~i~h Village ~e~i- ll)lqTl ill" at a Yale iI'tiilillil, th" will fo, in S]loit. tllit'letcl his ctt~altliood, his %oh:e, and his bee ti2aiette, t,~lt win him the eves, ears, and lungs of a ~ l-told. It is Mr. Good¢'.'t. to,,,,, ...... .a o,, p~;*it.,,] -it. RI, OI 0350233
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TI'IE ~,']~TCHWORD oi the Amerlctln N~vy came from the lips of • rnurllllV wounded cn~n ia th~ hour of defe~. /~ut because they ~xpre~cd i b~sic idea, hi~ ~ords lived to inspire P~rry'* vietory on Lake Erie, and rnsny another victory. P~rr~'s ~bol-torn fla~,rrud~lv le~terrd wilh Ibt words of Liwrence. han~ in %lemerlal [l~ll ut :~n.•p,~li*. It ii under thit influence Ihal suceeedlnf. ~enerttlons of fled#.lin~ ot~cert h~ve Iirown u~, maturin~ ir~ the ~irit th~l never ~urre~der~. IDEAS are the real rulers. They win the victories, This applies not only to the great historic struggles, but to the commonplace individual decisions of everyday life . . . People buy ideas when they buy products. Their pref- erence between similar products is an idea preference. The idea makes the original contact with the buyer's mind, and has much to do with his final satisfaction. T~at is ',~'hy it is so important to send a product to market armed with a basic, distinctive advertising idea --something that the mind of the buyer can really take hoJd of. J, Walter Thompson Company has ne~er confused the technique of the craft with ideas. It is known that a basic idea is something besides bright copy or layouts, some- thing besides skillful media selection, Something besides adroitness in merchandising. It is a principle of this agency that the idea comes first--then all these desir- able attributes spring from it. To paraphrase--" the success of campaigns prepared by this agency does not arise from chance, or from supe- riority of force; but from principles ~vhich n;ust ins~re a frequ~'ncy of prosperous results, and give permanency to the reputation acquired." J. WALTER THOMPSON COMPANY Advertising NE~ ~OHK I'IttCAI;(~ CINCINNATI L(I~ ANGE|.ES SiN FI~N('~ISCO ~T. LOt'IS SE.~TY~-E * MI)NIREAL T~RONTO . and It) ,,fflee~ in ,,tiler c,~llt~lrie~ • II5• /~T;~0I 035023~
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Philip Morris [Cominued [,ore page .¢16] belief that e~elsbodv 'aho encotlnters the Iis ill7 lradt.ttlal k i~ ill find a new compul- Sil~ll iN its lifele.~ reple~,entatiolls arolnld tim fig;ll stole. Holve~er Ihat illay be. Jnitn lliU, as tile Illilll hchind the photograph and the xoice behind the slngan, represents a hi,his original ~uccess of ~llat might he called tile harmless-nonsense (as against tile eason-~dly) scheol of advertising. J()tFNNIE, whose upkeep does not take 5'_,u.ooo of Philip M.liis's advertising budget, has unquestionably given tbe corn- pan',r a lot for its tnoney. It is tie who is inaiills responsible for the inipression that Philip Morris is a big advertiser. Philip Morris-especially by tobacco standards- is a contparatively small advet~iscr. Its ntag- azine bill last year was $1oo.ooo. IIs radio bill 4incbiding talentl was around $7oo.oo0. "x In Ohio, Petlnsxlvania. and Connetticut, where there is a state tax of tuo trellis till a packa~,e oF ci:.~arettes and where Philip ' Mnllis price ntaintenance nteans a slight ............. piite reduction to the dealer, it did pro- .. tiaps SI~O,ooo worth of ne~sf>af)er adver- "ileadquarteld.[ did not elen fta%e a l.;iit- ti~ill~ to exphfit its pricc equality with tilt' dou letterltead~,-it tlsed tilt> stationer': ill llig Four -If-tie rest ot tile Sl2oo,ooo went f.r "dealer helps," uind.w display space. and genmal promotion. The only item here that is m any way comparable with what tilt! Bi~ Potlr ~pend !fa~t year Re'vnolds alulle ~l)t'llt a ~)tl ~ltl.ooo.ooo ill ad%et- tl~ill~i i~ tim r:ldi~ itein. The Ptlifip Motifs pllt~lalll. ~dlich rZ~c~ Otlt -I'llelda'¢ ni~,hts o~,c,r titD,-Illlle ~HltiOlls frl)lli WEAF, is a Ilaif-hottv Iriix ot tile iIi~t'rse talents of ieu l~t'islll{lll ap.d twent],-one nltlSiCiallS, a Ii;tl lt()llC, a Hilt]l ~ill~Cr. a illixed qlHlltet. aiid the higli-plicrd dialogue expeit l'ifil- lips l.oltl, the t~ltole bracketed by J,Jhnnie>s pieltin,.' call. "I lie services of these artists> plu~ Nh. Biou's ~ontmission, stand Philip ),hlilis about St.ooo a week. Because it is tlleil la~'.,ent siil@e adtertising expense and atfords thein COil\At\ t~ith lli~ time ;ld~el- rising, tile Philip 3.1olIis e\ecutite~ take an hlllrtfityate iltteIc.t ill their l)rll~ram. Not ~lll]~, .\tl;t'ltinill~ XlilllA~tq SImridan. but ]%lu'~qS. McKittelitk. (.halkie'~. ]All\t, and (iiCt.llt~ait[ ale f;lilhttl]l', ;It h,lll(l for ¢~et~ it-iIC[ll%.ll" el/l~h Clllllrk/)lltiH~ 5tl~eNtiOllS lilt lilt' lit\hie, the (ti.I]o~'lle tilt' ~<ls tile partici- pants !eat{ their lines, and the pace and feclin~ of the ~h-~, V(tien you add in tile l l)llttiblltiiJllS of Messrs. Biuw and (;,~ode alld tilt' National [~,roadcastin~ (:o.'s plodtl(- tiOll IitAII. ~,OU ha;e '~th:tt is allllO~t a surfeit ,if sltpctvision. Public interest in tile pro- ~raH1. ;ttt (~ldill~' t~l tilt" ~lllXCVS, has not 1)Cell ,1~ ~ Kill,el:lilt as tile e\eetlti~e itllerest. But ~]l,lt d~t.,s lillt dull {lie e~.eltlti~,e ilttele.t. ~ hi~ h is a fnrm (if ~eIbindul~'eilt c tile exe( u I ix es ai ii)l~ Iheln~,e]', es ;IS a I e~a ald for ha'. iltg put i)%er a Itew fifleen-~'ellt ci~alette. It i~ an achie~entent. \Vhether the dealer nlargin, tile pel-,onality of the sales- nten, the hlend itselF, diethylene glycol, Johnnie, the name, or the package is pl inci- pally responsible, the probability remains that tile English P, lend is here to stay and to grow. Perhaps its most remarkable fea- ture is that gross safes of about $20,ooo,ooo List year hase been won without anvpublic offering of new stock, without a bmldissue, xdth only a moderate increase in hank loans. This contrasts strongly with the way Ix)rillard put over Old Golds: a Si5.ooo,- ooo bond issue Fill plomotional expense. So far the Philip Mmris people have axoided \Vail Street by plowing, hat:k all their inereased earnings into leaf p~lrl:hases alld pro\notion. There are no bonds all(t IIO prefeiled ahe<id of tilt' COllllllilU stork..\I though they earned S.'1.75 per sflale in fiscal 1935 and probably 56 a share in the tiscal year ending Maieh, qt36. the tliGdcnd rate rentains St (t~liich Maril×~ro alollc earns). President McKittcrick and his a~s;~ elates set great st¢llt? b', this (¢tlli~::r%~iti%~ policy. Since five of tile seven l)ireetots +,f Philip Morris are executives of the COlll- party, and the executives olvn or dircttl~ contlo] arOulld -<23 per cent OF the stl~.k. they are ill a position to COlttilllle tO spend only from income iF they scant to. But %galt Street asks itself whether they can support and expand their vohnne indef- initely without recourse to the public ptn se. The day may well come xd~en Mr..M(Kit- teriek will decide that it ~vouM be ,c-on'~e- nient, evell if not necessary, to tap the iil- sesii)r's interest ill his company. How ~l)(lll that tray will come probably depends on h, m' spet tat ularly l'hilip Morris continues to lit> America's fastest growing cigarette Landon [Co.ttnuect lrom /,age 79] Mr. Staufler's Arkansas Cit~ Daily, Tmvele~. Later a similar office was opened in Topeka by annther Landon b~c.ster, seventy lixe- year-old Charles Frederick Scott. pubfidter of the lola, Kansas. l&g;~le~, who has long been ;ill enel,getie Republkan publit ist in tilt' fatlll holt. An oftl-time st':'llldpattcl Con grea~ntan, he interpreted the Homer cause to lura] ettitors in t 932 altd ltla('i~, ttle nomi- llatill7 speech for Vice President, Charles Curtis. [n addition tu the>e publicity lIlen a gloup oF Kan~s friends of .\If I anclnn Uli- dertookvohllttarv ntissioilal', ~ork ill neigtl- boring states aild occasionall', at greater. distances. "tnakiu~ contacts" it{ the [.andon .' causc.ostensihlv oil tlleir iron 1 esponsibilit¥. They sitliled on the creation of Landon-tbr- ]>it,~idcilt t'itlb~, hut carefuil~ atoide~it'any lfllllIilitlIlelltS that Illi~]lt be (onsllr]efl ;1~ olNcial recognition. The acli~ilic~ of the elltile RIotlp. tip tl) tile {il 4[ oi t]lis year, h:M ifl~[ illl[ lil~)ic I]1£111 ~2.'~()11, tirol fa.I illlltllh thclc :~;1~ ;l Iillld iJi ~;~>(~l}t) 110 tjtqttl'ibtltll~tl lar~er \flail Sl,,'too~ ';~ic[I "lll~t a pellIIy of eLlSt t'I II Illl~llC% " In the Lt~t t~o lllOlttb', lJf 19;;5 All 1.an- doll'S ~tlatt's~}" o[ sit-light-and wait-I~!r-the bleak~ had tuo st~.rp, rishtg result). He had ;ltle[)ted his first ottt-of-~tate iI/xl[atl#HI, to address the Ollio Chamber af C.unnm~e ill (]levetand [t was II! be a oh;ira\ teli~ti~ f .all din\ speceh, utterly det~ml of firewmk~, reciting the tht'll familiar ~t~n~ of Kansas cc¢~lti~lliv, alld sn~e~;till~ lhat the IlaliiHl'*~ tr¢~tlt)ie£ I)c ~,l)l~, ed fl~, i-i)tnlilt)ll *etlse..\ week helore the day of the ~peech. m a \Vashin'4- ton pre~ r.nterence with FERA Adntinis- trator Harry Hopkins. a Kansas City ,Star / < ...... , ...... ,0,.,L.,0d r,i.,Z iltlllltelltly asked a questlOl/ COllcertlillST. Kausas and relief. Mr. H,opkins exph~fed: "The state of Kansas hat ltot put up a tllit't dime for relief. Its Goi'ernor has made no effc~rt to do st) .... ,Tile last I heard, the (;oseriIor was tt~in~ t(J oet eIlough froiil me to keep his schools going. The cities :l~d coutlties have (Jolte well. bill trot till' ~:a:~ " "Isn't L;ntdon batancin,a the bud.'ct; "Oh yeah! And he's taking it otlt oI the hides of the people." F{)l Ciuididate I.andon it ~as a Rill hont tile sod~. The sulplltllilnn Mr, tt<>lJk;n> e\i dently had IJveih;llked, iir ltad nc-2icclcd t,~ r[i~Cuss Fully, the fact that the Kansas Cotl- :stitution throws the burden of care ~f the needy on "tile tespcttite COllltliu% of [~iC state," hence Ihe state has b~llne o!!i~ -7 per Cell\ of the relief load, the countic> 2i:, [)el" Cl.'llt. \Villlin t\~elll\-f~ltlI hoUl~ ~{,2iiallt lacy Haynes had cqnitqwd (]eillllltlii~[ |~.;iX Claplicr ol Ihe Nell-Ileal ]latin~ "O.a.iiin~ Dill [>,~t with itlateti;ll Ior a col\l!:!?\ ,d lV}>llllal shcl~aitl2 1}l;it I~,it]nLi~ (7o111t~,. r,,l~ tl]})tl[il}llS [)l;IcC{[ the state {lttCcHlll ,iH;~glL~ tilt: ~l)llVcJ2ht ata[es ill atJlotlttt Of ]l~tal }>,ntit ipation ~ittt tcderal ~di'.f M! }{'I}) kin~ Illi~ht ha'.e ~;~llU Oli t~'i[il ~tI~ al~iI!',le-llt thai (~t)% el tt fit I ii Pl(llJl t ( ilt~Mit tlliliiLt]]\ coidd lil~,e sublllittrd ,~ Ye[ereIldtlin tO] ;111 antendlnent to lelieve his hard-phlched o~llntic~ ¢/I ~onle Of the btlrdell, btlt [~]it- i~a]l~ the dalltagt" ~.~as dolle Tlle ~etl'lae:lI had <la~ kcd flol~n on .\If [aridnn'. [t ]~ad iatllltlit'd it. iir~t attack tip, in a Rt~ptlil[it-lll hclo. had contributed ~latis the Ihl.'ll (-.on dai ing!ediem of a boom Still ~il}l,liil opellill7 his mouth..\IF l.aildolI took ihe train to Cleveland and was flcmt-pa~e ~tuff. [f;..t,~.,>d on p,l.:'e ~-'~> • ill}. "1 03 5023 5
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-% , Spuds FORTUNE --- NOVE:~BER, 1932 Came up from a restaurant in Mingo Junction, met a warm-hearted Kentucky colonel, left behind a trail of splintered airplanes, and made a new tobacco magnate. i t SPUD as a cigarette is a mingling of menthol and nicotine. Spud ,as a busi- ness is a new planet which in five years' time has swum into the cigarette world's ken. A few months ago it had become (un- less its makers exaggerated) the country's fifth best selling cigarette. Its net sales are in the order of $5,o00,o00, yearly earnings of $5o0,000, Few enough $5.ooo,ooo businesses have de~cloped during the depression, but still fewer $5,oo0,ooo bttsinesses have sprung up at ally period frotn antecedents like those of Spuds, The formnla for creating snch a business--big capital, professional execu- tives, and the rest--is fairly stereotyped. Spud t.~as not true to type, for the story of Spttd's success is the story of a Kentucky colonel. But there are more ways of making money and more kinds of Kentucky colo- nels that~ are dreamed of by the average than with a lighted cigarette beneath his 11o5t2. The colonel is by name Woodlord Fitch .~.'-:tou-l, Vood Axtnn in local terntinolo~'. He, in the effulgence of the middle "an's, x~as a bachelor just past fifty, large of stat- ure and leisurely of manner, a lover of horses and (at least OllCe upon a time) of mint juleps. Those concessions he made to type, hut few others, ttis brief story indi- tales the rc:l~.Oi1S, He began his career :ts a grocery salesnlall. +~LS a grocery salesnt.an t9~? 1928 I929 t93o t93t t932 SPUD SALES HAVE INCREASED • . . while all U. S, cigarettes together show a ialling off from their 193o figures. Spud production went up steadily until-at twenty cents--it caught up with all but'the big fifteen<enters. in t899 he tent, in his amiable way, the sum of ~6o to a customer who needet~l it to meet a bill. And ultimately tie accepted some tobacco-preparing machinery in pay- ment of the debt. So it happened that while his former debtor ill Owensboro, Kentucky, operated the machinery, .-Lxton began to sell his own tobacco products. He planted his brands firmly in the com- muntttes he knew, bttt had his full share of difficulties. For one thing, in the first decade of the century the tobacco trust undertook to lick him. It sent salesmen through his territory in waves: the tint wave tried to win away his customers by persuasion, a second wave by cutting prices to those cuStolners who had not succumbed to the first, and a third wave to give away the rival products to tile customers 'who had resisted the first two. The local popu- larity of his brands and his personal rela- tions with his customers brought him through the ordeal and actually increased his sales--showing what khtd of business- man Wood Axton was. But the same incident showed another trait of Wood Axton's character. While his fight with the tobacco trust was going on, he boarded a train and went to Washing- ton. There he not only saw Theodore Roosevelt, who was lising in the White House, but became a I/riend of his. The deliberate Kentuckian and the excitable New Yorker found they had quite a bit in common, and later Wood .~L\ton tvas one of Rooscvelt's chief supporters in Kentucky during the Bull Moose campaibnl of tgt2. This attachmeut was not merely to Roosevelt but to a set of ideas about gov- ernment and economics. It made V¢ood :Zxton Bull Moose candidate for Mayor of Louisville in tgu;--an dec:ion t~hich he ;Hid lnan~ others still contend he won, al- ,imugh the two oid parties jockeyed hitn out oi ~ictory in the cot.tot. The same ideas made }aim a supl'a~l let of the elder La Fol- lette in tOa4 arid are again reflected in the Iact that he has ahvays been a warm sup- porter of union labor. His factory has always been a union shop. Even his labels bear the union trademark. Today the Axton-Fisher Tobacco Co.. ~'rown large (thanks to Spud-and to the ten-cent Twenty Grand that has jr:st followed), is still completely unionized-the ,,nlv one of the large companies that is. ~,Vith Roosevelt. and La Fotlette this Ken- tricky colonel--a man slowspoken, cautious • 5t ° in coming to decisions, given to long un- explained silences in the midst of cottversa- tlon--was in strange company. He is in even stranger company with the modern tobacco kings. For he bad a very tidy business in tile middle 'uo's, but it was a local business. His ambitions had never thundered across the country in great advertising campaigns. As his business grew. he had moved it from Owensboro to Louisville. He had taken a partner, George H. Fisher (now dead these several years), to run the plant while he was on the road. His cigarette anti smoking tobaccos (Old Hill Side, Old l..oy- ahy, Himyar), his chewing tobaccos (VChite Mule, Booster Twist, Axton's Natural Leaf, Pride of Dixie, 8-Hour Union, Wage Scale). his cigarette (Clown) became househohl words, sworn by ill mauy a comnlunit} l~t the Ohlo Valley. Far-flung geographical conquests were a htxury that did not tempt him. He preferred a good profit and a sure sale. He did not spend money till he had made it, and lie Contilllled to OWll his com- pany abont 80 per cellt. When he intro- ,MILLIONS KNOW HIS NI(2KNAME Lloyd "Spud" Hughes of Mingo Junction, Ohio. ~nrking ill a restaurant there, invented a ~av of impregnating tobacco with raemhoL In December. 19a6, Axton-Fisher Tobacco Co. g~a~e hhn and his axmciate~ ~3o,ooo for the process. "~pud bought can and airplanes, crashed. Axton-Fisher has since made billions of cigarettes named Ior him_ Spud is working on a new cigarette, )i RT,',/OI 0350236
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duced a new brand or put an old brand in a new community he did not squander money pushing it unless-and until-it showed ability to take hold of its own accord. For twenty-five )'ears he had built his business on that policy and he was well rewarded. In the first half of the middle '2o's his firm was clearing sometimes $1oo.ooo in a year and sometimes as much as $250.ooo. Such was the Colonel and his company, and in the beginning of the year 1926 there was no particular reason for assuming that they would ever be much different. As a matter of fact, the Colonel has not changed. His business is quite another matter, for in 1926 it came in contact with something new-- something that in itself seemed no more promising of revolu- tionaD" change than the Axton- Fisher company. This was Spud. Spud was a person before be- coming a cigarette. Ten years ago Spud the person was a boy two years out of high school. His father, a former coal miner and union organizer in eastern Ohio. ran a restaurant at Mingo Junction (near Steubenville) and Spud was its cashier. To go iuto a homely detail: Spud was afflicted with coryza (the com- mon cold). For this "his mother prescribed menthol, but be pre- ferred cigarettes. He compro- mised by mixing a few menthol crystals with a package of to- bacco and leaving the whole to mature overnight in a baking- WOODFORD FITCH AXTON In tg98 Wood Axton, aged t~-ent'~-si;~., wits a wholesale-grocery salesman. In 193s, at tixry, he is prestd' "ent and'majority owner of Axton-Fisher largest j~rivat¢ly controlled ¢lgarette company. He got into tobacco by accident. "ook tome machinery in exchange for a $6o debt and found it profitable to run the machinery. Fought for his independence in the Rooseveltian trust. busting days and kept iL Still a fighter, he has built up a great business with Spud, now selling dine to the falteen-cent Titans, and Twenty Grand. second greatest in the ten-cent field. He employs only union labor. powder can. In the morning he made it into cigarettes. First he smoked his cigarettes, Then he offered them to the railroad men and mill workers who frequented his father's re~ taurant.Finally he began to tell them. They were known as Spuds. To appreciate what fob lowed one must understand something of Spud, whose prop- er name sv~ Lloyd F. Hugh.. In his own gay and ner~/ wa~ Spud is as much a character as Wood Axton-but his own way is nearly the opposite of the Kentucky colonel's, When his cigarette began to succeed, Spud gave up his job in his father's restaurant and set out to ride the wave. He mar. ried and moved to Bridgeport, Ohio; thence to Wheeling, West Virginia (where his wife's father is the chauffeur of one of the city's millionaires), He had par.. ented and improved his men- tholating process and proceeded to contract with Bloch Brothers Tobacco Co. (Mail Pouch chew- ing tobacco) to make Spuds for him. Once a week he visited the factory to blend the tobacco. At other times tie went on the road from city to city selling his product and sending back his orders. In the basement of his home in one of the better resi- dential districts of Wheeling, he had an office where his wife acted as stenographer, secretary, aud shipping clerk. Finally Spud's father, Thomas Hughe,, joined his son as cigarette sales* man. They made a very decent ;i |J HOUSE AND BARN OF A GREAT CIGARETTE MAKER Every evening Colonel Axton gets into his car outside hit Louisville factory entirely o| materials taken from the estate, its building planned and super. and drives as fast as he can toward Wildwood. his l.oeo-aoe estate on the vised by him.~lf. In the great dairy barns right) is one of the nation's finest banks of the Ohio. It is his particular pride, his joy. His house (left) is built Guerm~y herds, including Bet~ * Hopelul, $.t.~.5oo wonder cow • 52 • T ;,fro "1 03_'5.02 3 ?
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living from the business, But Spud, ever an ebullient young man, was not satisfied. ht qnest of further profits he began to canvass other manufacturers. In May, tgl6, on behalf of the Spud Cigarette Corp. which he had formed, he contracted with Axton-Fisher to manufacture Spuds. The arrangement lasted several months, Axton- Fisher doing the manufacturing and Spud the selling. Colonel Wood Axton thought the cigarette was a good idea but he did not think that it was getting anywhere as it was being handled. So later in the year he offered $9o,ooo cash to buy the business outright. It was a sale. Spud and his father got $75,ooo (the remainder went to three asso- ciates). That afternoon in great glee Spud walked into the friendly office of a ",Nheel- ing newspaper and began to toss Stoo, $5oo, and St.non hills upon the city desk. A re- porter picked them up and banked them for him. A day or two later Spud was off to Cincinnati where he bought a ~Naco biplane. They would not let him fly it on the spot but at Moundsville, West Vir- ginia, he got a former Army flier to go up with him. In the air he took the controls, and coming down overshot the field and smashed upon a slag pile. Spud's nerve was not even shaken. After repairs tte took up the ship alone and made a perfect landing. From that time life moved swiftly for Spud Hughes. He opened an airport at Yorkville. Ohio. He went barnstorming through the state. In the New York-Spokane air race. he took of[ in. a fog and next sighted land when he hit a Pennsylvania mountain side. Lost at night, flying home front the air races at Cleveland. he tried to land by the light of a pocket torch and smashed up on a hillside in Ohio. He cracked up five or six planes in succession but his only injury was the fracture of sev- eral npper teeth near Fort Lauderdale in Florlda. Airplane breakage and declining sales of a XVaco agency that he had taken left him, in the summer of t928, entirely tmembarra.ssed by worldly wealth. That being the case. he went to Brooklyn, got a jub lust iu a filling station, then as a post- man-and worked at night on a new ciga- rette: .]ulep. His only cmmnent on the past (delivered with the gallantry which always made him popular) was that he himself had spent his money instead of letting the depression take it from him. The last stage of his ()dyssev took place this year when he. his ~ife. and their three children, riding m a $75 automobile and peddling cigarettes on tixe way. i~eaded for Hahira, Georgia, where he is now trying to make Juleps into attother great money-maker. Meanwhile where Spud the man left off. Spud the cigarette went on. It was in De- cember, t926. that Colonel IVood Axton bought the cigarette, and at the end of that month his company's income account reached a new high. showing a net of $299,ooo for the year. The following year was to show what Spuds could do, sales '.',,'HERE CIGARETTES BECOME SPUDS The secret 0[ the coolness of a Spud smoke-as a $5t,ooo,ooo advertising campaign, has made quite dear- it its met~thol content. The solutiou (its formula is, of cottrse, secre ) as applied direct to the tobacco before the cigarettes are made, much as is the flavoring of all cigarette tobacco. Jets spray and resprav the whirllng mixture, saturating it evenly. Axton-Fisher's mend'~o~ comes in crystat~ from Japan. several thousand pounds of it a ~ear. The operator of this machine hasn't had a cold in the head sincr 1926. mounted to $4,790,0oo, net income to 5575.0o0. All of which goes to show that figures are excellent liars. Although Spuds did help to tx~ost profits in tgz7. Axton-Fisher's ex- ~ehrience with them was most discouraging. e Colonel put his new cigarette on the market but, naturally, distribution was at first spotty and inadequate. None the less. in Louisville, as elsewhere, numbers of ~reOple discovered Spuds. They shopped om store to store to get them. Beset by inquiries, retailers thought a deluge was coming and ordered heavily. The orders poured in on Axton-Fisher faster than they could be filled--for the time being. But Axton-Fisher soon caught up, the retailers were stocked up, and the inquiring smokers of I.ouisville no longer had to inquire: for every six previous inquiries dlerc re- suited perhaps one purchase--Iea~ing ,q~e packages unsold on the retailers' shelves. Cigarettes unsold for months gradually de- teriorate: deteriorated cigarettes bring a brand into disrepute. Axton-Fisher's deluge of orders from retailers subsided with mag- nificent ~clat. The year that brought a record-breaking net of $575,ooo to the com- pany ended with the sales of Spuds at exceedingly low ebb. At the beginning of t928 the tadpole lost its tail, turned into a frog. The A_xton- • 53 • ",:% >j i
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WRITE US your opinion of this menthol-cooled smoke it *cmall~ ~oth= . . . Do. ir ~.~,~ ~,t "~--...~_,. • • • a,,i ~. •o • *4,000 CASH PRIZES SPUD ~.*mthoi- eool*d Cl OARI~TTE$ ao/a~. :t,o,~ ~9~8 SPUD'$ first ad appear~ here as it appeared in April, ~9z8, in the pages of Liberty, the Literary Digest, Lile, and the New Yorker. Aimed to find out ~hat the "public Liked in Spuds, it brought in 2o,ooo answers, votes for corniness predominating. Hence in July and August ads appeared announcing that by scientific tests the Spud sunoke was di.$ per cent cooler. And since t~.'ent~" cenu ~as already a smart price for cigarettes, that 5rtt |all smart people were invited (by color ads) in Harpers Bazaar, Fo~ue, Vanit?~ Fmr, and Cosmopolala~l to "Smoke . . . and scintillate" on the beach, to "Puff . . i and pun periectly'" on shipboard. Spent: $t4o,ooo: Axton-Fisher's sates: $3,97~,t~)o Fisher Tobacco Co., which had almost no funded debt and had always been practically the private property of Colonel W.od .¥\ton, went to E. E. MacCrone ~ Co. of Detroit. Henning, Cham- bers g: Co. of Louiss'iite, and Eamnan, Dillon of New "folk and otfered got' ~ale 51,ooo,ooo of preferred and 5o,0oo shares of Cl,~_~s A common stock (the latter yielding the firm about gz,ooo,ooo!. The Colonel also acquired New York and Chicago banking corn nections (the Bankers Trust Co., Bank of Manhattan, and Conti- nental lifmois Bank g: Trust Co.) and broke with his career-long policy of financial isolation. With his new capital he proceeded to build himself an addition to the excellent and up-to-date platte which had serwed him for years, and he decided to use some o~ the new money to see what could be done about the fallen sales of Spuds. For this spontaneous burst of sales wken Spuds were first offered still gave hint faille in them. To this end he went to Nex~ York to ~turt [or adxice. There he met two energetic young melt. Hen~' Eckhardt and Otis Kenyon of ~hat was then the advertising firm of Koy D. Lillibridge, Inc. (non" Kenyon ~ Eckhardt). They spent during t9~8 $t4o,ooo in ad~'ertising Spuds. This new financing and advertising campaign was the first in- stance of expansion on a big scale that Wood Axton had under- taken in his long career. The hopeful spirit of boom days perhaps Spud's Advertising History • , . is the story of a company that began to advertise as a last resort. For Colonel Wood Axton believed in letting products demonstrate their worth unadvertised. Spuds had proved theirs by a sales l~eak in ~9~7, a peak distressingly fo ]owed by severe decline. "l'nat prooE and the persuasions of Messrs. Henry Eck- hardt and Otis Kenyon induced the Colone, contrary to twenty-five years' policy, to try an advertising experiment. I~ ]9~8 the experiment cost him $~4o,ooo but it brought Spuds out of their decline, boosted them by fall above their .previous l~eak. In the three )'ears following he spent $t,~6o,ooo m adver. rising Spuds and boosted his company's profits from $n8o,oo~) to $6oo,oo0. Before tea-cent cigarettes appeared Spuds wee said to be outselling every brand except Lucky Strikes, Camels, Chesterfields, Old Golds-all of which sold [or fifteen cents against Spud°s twenty cents. In spite of decreased cigarette con. sumptiort and the inroads of ten<eat cigarettes, Spud's sale~ are sull~rowing. Frye years of Spud's advertising evoluticm (in the bonus of Kenyon 8c Eckhardt)are shown on these two pages. ~9~9 STARTING a second year Spuds hit their stride with the basic appea~ of relief [or those who over-smoke, Cleverly Spud's advertising has ever ~inc¢ capitalized cool relict [or the burnt tongues of a nation that smoke.J to excess. Already its ads bore the advice "Judge Spud... not by the first puff.., but by the first ~ack"--[acing the obstacle that a taste [or Spuds is not spontaneo~ Again color ads in the swanker magazines: "Still stepping, still smoking" (S:c~o ,~. :.t. at dances). "Casnal croppers . . , cooler smoke" {at hunt hreak[agls). Magazines added: Time, Photoplay, College llumc~r. Spent: S~o,ooo; Axton- Fither's sales: $5,t98,ooo. Do You SMOKE AWAY ANXIETY ! • * • THIN yOM'LL APPItI¢IATI SpuD'S ¢SREAlr~ ¢OOLl4~lSf~ M|NTHOI*'COOL|0 S p U D Cl6ARSl"r'[s o
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MAD When an unln.a.td cold d~splaces ev*rypl*m~t thougM ;e your head . . . when I;fe ~ j~¢ sneeze, ~uffl*, mad, end s~ze egoie . . . and when a good smoke wodd [~tp . . . the~ :* e/way~ th~ on* clgerette w~ ckmN the way to old-f~ae d tobacco enioyment. SPUD ClOAtSTTtS-=O FOI ~0. ~93o SMALL ac~ to catch "su~erer~"--that is. people with the common cold--were first tried in 1929 and came into their own in t93o. Examples: "Sprig Kode" and "'Sniffle Snuffle." The "backbone" of this third campaign was, however, "Mouth Happiness" for mtoked-out mouths and for those who switch from cigarette to cigarette. And in more pages o( the swank magazines the name of Spud was linked with caviar, with terrapin, with color pictures of men in monea:les and taiL% of women in ddcolletage and diamonds (see page SO). Added magazine: True Story. Spent: $39o.ooo; :Lxton-Fither's *ales: :,%477,ooo. ~93~ AGGILXNDIZEMENT and evolution went hand in hand in campaign No. 4. For the first time Spud entered Saturday Evening Post, also the American *~Iagaz~ne. Its list of the high-hat t~,'p¢ included Sportsman, Spur, Town and Country, Country Life, International Studio. "Sufferer" ads disappeared, but insertions in Medical Economics pointed out Spud's mildness to ]~5,oco doc- tors, and in Billboard to 44.0o0 actor~. Ads like that below played new varia- tions on the basic theme. Spent: $55o.o{m; Axton-Fi~her'~ sales: S6,~9~,ooo. $PUD Do ,o. SMOKE MORE IN TENSE MOMENTS~ Keep • Cle•n Tam with Cooler Smoke I What you must do... to Sef MOUTH-HAPPINESS SPUD ............. MENTHOL-COOLED CIGARETTES • 20 FOR 20c ~93~ THE footnote of ~gag has become the full page ad of ]932 with a ti~tle dif- ference: to "Judge Spud not by the first puffbut by the first pack" hmi been added "Now start a second pack"-more ettort to overcome the fact that a taste for Spuds, like a taste for ripe olives t,r alligator pears, must be aoquired. Other c.~.an~e~: a contraction in prestige advertising (Town and Countr-¢. Inter. nat~o,~ai 5t~dio, Col~ntrv L~]e. Spur, and Sportsman dropped~: an e6ort to t.nmiida:e g~ins by concentrating on fundamentals (as abo~ei~/But no r~uc t[on of the total appropriation. Spent and spending: $55o,ooo; Spud ~al~ {or the first .~al[ ~.ear: up 15 per cent. helped to account for it. The company's figures for the year of :!ie"a ~.':i~e the fo;lowing results: tact sales $3,97~,ooo (t7 per cent dccrc:,c : net iltcvme $l~o,ooo e68 per cent decrease). But ag, ain the figures lied in spirit if not in Icttc~. D.'i~tn the three heads of A\ton, I-ckhardt. and Kenyon had been put t o 1 gethcr in conference, they did not know ~tletllt.t Spuds cotdd e~er be lifted ,)tit of the class of trick cigarettes: the} did not cx t:tl k :1 t~x~T why Spttd ~mokers liked Spuds. Their litst advertising. ,~}~ith appeared during, the first two weeks of April, 19'-"% was de~oted to a Si.ooo prize contest with the aint of getting the smokers to tell them. They ~.ot 2o,ooo answers front their adtertisements in Liber:~. Lite~a~-/Digeat, Lile, and tl~e New Yorker-answers that indicated [:,irl~ c!c:trly (n) that people liked -qi)ud~ not nterel', as a treatment for the comnmn cold :rod ('2) that people liked e~p<-cia]l~, the coolness of Spud smoke. Oi1 these cornerstones timex built Spud's subsequent attvertising-t~'hose stoW is better told b,, the pictures nn d:ese pages. So far as Wood Axton was concerned, however, his first flier in Spud advertising was of more immediate interest: it brought a swift response in sales. The sales curve mounted until, by ttte fall of ~9=8, it was as high as during the balmy days of t9=7. That fall the advertising campaign was renewed and. enlarged. Sale's [Continued on page tOT] • 55 • R l "1 03 5024. 0
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HARRY FORD SINCLAIR A PORTR.~IT BY ER.",'EST H.,4MLIN B.4KER • 56 • f3 T,'dO "t 03 5024. !
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t responded. The year's results did not show in the income ac- count but they showed in the business that '*'as being done as the year closed. So far as Axton- Fisher was concerned, the corner was turned it* ]gzS-a very note- worthy cortaer; for subsequently while the graph of industry in general was sweeping ever lower during the depression, this com- pany's sales and profits moved in the reverse direction: Net sales Net irttome 19x,8 $3,97z.ooo $]8o.ooo ~9x,9 5,t98,~ 5t ~,o,0o t9~o 6.s77,o~ 744.c¢o t93t 6,z9~,oco 605,000 The figures for t93] show the only impress that the depression made upon the company. In that year Axton-Fisher's adver- tising budget was increased $16o,ooo . (to $55o.ooo), but sales mounted only $16.o0o. So there was a decrease in net in- come which probably would not have been permanent-we shall never know. For while the movements in Axton-Fizher's sales and profits from s9t7 to 193 s inclusive can be attributed almost entirely to the progress of Spuds, in June of this year Axton-Fisher added another phenomenon to its repertoire: the ten-cent cigarette Twenty Grand (discussed on page 46), Since June Twenty Grand has so swollen the company's profits that Spud's contribution can no longer be easily distinguished. Wehave these facts, however, on the authority of Colonel Wood Axton: that Spud sales in 1932 are ahead of those for t93 t ; that' they itscreased 3o per cent in the first seventeen days of September over the first seven- teen days of August; that be- fore the ten-cent cigarettes came to upset the established order in the cigarette world. Spuds {selling at twenty cents) had gained a place in cigarette sales next to the Big Four iselling at hfteen cents or somewhat less). ~,%re intimated previously that Spuds had made a great change in the Axton-Fisher Co. but none whatever in Wood Axton. Neither of these things is ex- actly true. The company has changed from a successful small company to a successful big company. It has a handsome new plant with a newer addi- tion (and more to come). Its stock has a market on the New York Curb and quite a number of people own stock in it now- Spuds [Continued ]tom pag'e 55] adays. Yet Wood Axton still not only runs it but has a control- ling interest, Many of its stock- holders are among its employees. And when you walk into the door of the firm's building you see only one private office, the Colonel's, and in the open space before it you can see the company's directors busily at work: Edwin J. Helck, vice president; Edwin IX Axton, secretary and treasurer; Rol?ert appeared on his horizon, Wood Axton bought himself 600 acres of land twenty-three miles out of Louisville to start a stock farm. Three years later, when things were picking up, he added 4oo acres more and built himself a large house out of limestone cut from a 5no-foot bluff overlooking the Ohio. All the wood used in construction was cut from timber on the place, even to the trim. He lives AXTON'S PRIDE On his Louisville farm. the maker ot Spuds rai~¢'~ thoroughbred~ for racing. This year he has more than twenty yearlings of the be~t U S. horse blood. Witchery is flxown here with a colt by In .Stemormm. L. Axton, general sales manager (the latter two. younger broth- ers of the Colonel). Aside from the Colonel, there is only one director missing from the com- mon office: he lives in Detroit. The changes in the Colonel consist chiefly in the acquisition of those things which should accompany old age: honor, love, obedience, and greater wealth. Nine years ago, before Spud,* there in his amiable bachelor way with a relative as house- keeper. And he drives back and forth to to~n at the wheel of his Lincoln, traveling at a ter- rific speed which one would not suspect appealed to so leisurely a man. His speed and his occa- sional nonchalance in driving on the left side of the road leave him now and then with a broken rib or a broken collar • Io7 . bone, but he does not care to change his habits, He has succeeded in establish ing a fine dairy farm across a ravine from his house, has reg- istered Guernseys led by Betsy's Hopeful, a $4t,ooo prize cow, On the other side of the en- trance road is the Wildwood horse farm, where he breeds race horses. Here, flowing in the veins of a stable of colts and yearlings which would make any turf man sit up and take notice, is the blood of most of the best race horses o~ the past fifteen years--of In Afemoriam, The Finn, Witchery, Epinard, Deirdre, Zev, and a half~ozen others, The Colonel knows their pedigrees by heart and delights to dwell on them in conversa tion. He has his own private three-quarter-mile race track where he trains not only his yearlings but also the jocke~,s who ride them. This year he has more than a dozen horses on the tracks near Chicago and Louis- ville, many of them winnen. Next )'ear he will have still more, and sooner or later the world will doubtless see tb~em race at Belmont against the horses of the Whimeys and the Wideners. He believes that~,Vild- wood wilt eventually turn out a horse that will be among the great money wimters. If it do~ he will be completely happy. Wood Axton enjoys the priv- eges entailed by his success and added years. He gives his 80o employees (who now work in three shifts a day) a mid-shift meal with a choice of two kinds of meat, plenty of green vegeta- bles, pie, and all the milk that they can drink from his fine Guernsey herd. It costs thezn nothing and they get union ........... wages besides. He sees that :t .............. is easy for them to get librat~ books attd generally in a pater nal wav watches oser their af fairs, domestic and otherwise Fie is rapidly and very easiiy be- coming a true patriarch. Twenty ",'ears ago, before peo- ple smoked so much that their parched throats cried out for relief. Spuds could hardly have been so great a success. James B. Duke, George Washington Hill, and the others whose advertising campaigns taught Americans to smoke immoder- atelypaved the way for Wood. ford Fitch Axton. Now he is of their company in one sense at least: he belongs to the cigarette magnates of the nation. R T :KO I 035024.2
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A dvertisemen t Precious s 'a A mother and her children. Tenants of your building. Frequent passengers on your elevator. Precious cargo. Upon your shoulders rests the responsibility of their comfort and Safety. TE~^.'CTS tU~ the elevator many times each day. Its appearance and service are con- stantly brought to their attention• They readily discinguish good performance from poor. And today the modern vertical conveyance is to them a nccc~ity. By modem we do not necessarily mean new. For the engineers of Otis FAevacor Company have adapted many of the recent elevator improve- ments and inventions to those elevators already in use. And under the Otis Modernization Plan many of the older devator models can be over- hauled and modernized at a nominal cost. The self-leveling feature, for instance, is adaptable to many of these older elevators. So also arc the automatic doors and the signal- control system. These and many of the other important elevator improvements as perfected by Otis engineers. The entire installation can be made to operate smoothly, swiftly, silently, The outer dress of an antiquated model can be readily revised to tg?J. standards. We want you to have full details of r~c Mod* crnization Plan and, its practical applicado'* your own problems in vertical rtansportatloa, We shall be glad to make a f~ survey of Foal" installation and submit a complete report con. cerning its condition, what is needed for mOd- ernization, an estimate of cost. To k'cure th~s helpful survey, telephone yottr local ~S office and request the service of survey en- gineers. There is no obligation of courr~. O¢i.t Ehvator Compan:-- 3 3 9 o~ict, tbro*gbo=t t& ~wtd. .IO8. fq "l','gO "1 035024.3
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FORTUNE --- NOVEMBER, 1932 One Out of Every Five Cigarettes • . . now made sells "twenty for ten cents." The rise of the Little Four, whose slogan is "Reach for a Dime instead of Fifteen Cents." Something new in cigarette wars. The armies and the ammunition. f P -r I N THE early summer of t93x the sun shone down upon a United States blessed, in spite of hard times, with four large, wdbnourished to- tt hacco companies, manufacturing among them more than 90 per cent of to all the nation's cigarettes. Their treas- uries were filled with record net 9 profits, their barns overflowing with excellent and inexpensive tobacco, 8 and there was every prospect that the national demand for their products would in spite of the depression be as 7 great as it had been in the previous year, which was the banner year of all 6 time in cigarette production. The price of leaf tobacco, their chief raw 5 material, had declined to its lowest since t9t4 and the prospects were that 4 the crop of z93t would sell at an even lower figure. Their wholesale and re- 3 tail price structures were intact. The happy heads of these enormous corn- . ~ __ panics were, in the order of their pro- duction, George Washington (Lucky t Strike) Hill of the American Tobacco Co.: S. Clay (Camel) Williams of the R. J. Reynolds Tobacco Co.; Clinton W. (Chesterfield) Toms of Liggett k Myers Tobacco Co.; and Benjamin L. (O d Gold} Belt of P. Lorillard Co. (see opposite page). In the palmy days before the dissolution of the tobacco trust in t91 t all these companies had been associates in the mammoth mo- nopoly of the American Tobacco Co. Now, legally dissociated, they appar- ently still retMned hab ts of think ng in common with one another, for on June 2p t93t, all four simultaneously an- nnunced a rise in the wholesale price of cigarettes from S6.4o to $6.85 per thousand. a coincidence which had far-reaching eL [ecu. This was followed in the month of July by a large decrease in cigarette production. And the decrease continued through August and September. But the effect of the decrease was offset by increased earnings due to the low price of leaf and to the forty-five<ent per thousand rise in wholesale prices. And the Big Four con- tinued to prosper. U PON this scene of peace and plenty appeared, in September, 1931, NO. 1 gnat in the form of a cigarette called White ~in p~ductioa ot] Jan. Feb. Max. Apr. May JurL Jut Aug. Sep. THE FACTS • . . dlown by this simple dia tgram mean more to the U. S, ¢igarene industry than anything that has happened to it tinct the dissolution of the tobacco trust. Above: ]93t'5 total month-by-month production compared to 193ffs-- 'note that in August the lines cross and "~z's production tops '$1's. The reasort: the growth of the ten-~ent cigarette, whose challenging statistics are etched in black. Nineteen thirty- thre©'s question: will they fade,'- Roils, selling at twents for ten cents, it was the product o[ Larns q: Brnther Co.. old- time P.iclnnond, Virginia, tobacco mantt- facturers, producers of one of the best-sell- ing fiftcen<ent pipe tobaccos. Edgeworth, of the pate blue till L'lrtls, with a fine steady profit from their tobacco, had tried cigarettes a number of times before but never had put their heart into thenx. Things were a little different now. Larus President William T. Reed. highly respected iu the tobacco business and highly popular, has always enjoyed putting his head in the lion's mouth• In the old days before the tobacco trust was di~olved he used to hide in a cracker barrel to get evidence against the trust. The trust had never licked him. -44. Now, with tobacco so very cheap, and plenty of it, and with incomes dwin- dling everywhere, he figured that the time was ripe to offer smokers a ten. cent cigarette. Bill Reed's national reputation and the telling organiza- tion which had kept Edgeworth near the top among pipe tobacco made it easy for him. VChite Rolls was launched. Secure in their gilded posi- tions sat Presidents (Lucky Strike) Hill, (Camel) Williams, (Chesterfield) Toms, and (Old Gold) Belt, enjoying the golden returns of their recent (June, 19~t) raising of the wholesale price of their fifteen-cent brands. They scarcely looked toward Richmond. but it was from Richmond also that the next gnat approached them. IN OCTOBER, t93t, hearty, jovial Reuben M. Ellis, president o1~ Philip Morris $: Co., Ltd. and of its subsidiary, Continental Tobacco Co. (Richmond), makers of English Owals, Marlboros. Barking Do~, Dunhitls, and several brands of pipe tobacco (headed by Wakefield and gevela. tlon), decided to take an impre~lvt step, He had been having some trauhle distributing a cigarette called Paul Jones in New England due to wbat appeared to be pressure put upon job- bers to make them reluctant to handle it. Paul Jones had been out for several years and had had a very meager sale in spite of the fact that it sold twenty for ten cents. Ellis made arrangements with the United Cigar Stores Co,, the Schtt/te cigar stores. ~Vhe[an and Liggett drug stores, and the Exchaw_~e Buffet rcs¢ taurant system. They were to handle Paul Jones in all their stores and to display them in their windows. On November 4 Ellis .~,nt an advertisement (see page 19) in th~ ew York, Boston, and Philadelphia pa; pers. That ad brought Paul Jones to the attention of the East. "'America," it said, • . . Here's your cigarette!" The ad went oft to say that like rents, food, and clothingl --all basic costs, in fact--clg~lrettes shoul~ be lower. Not just one or two cents lowerl Five cents lower. Paul Jones was five cents lower. Tlte American Tobacco Co• was not noticeably shaken by this enthusiastic
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but depressed smokers read it. People who had never heard of ten-cent cigarettes before began to buy them. Until November, 193t, "America's cigarette" had just gone along waiting for a market. Now it began to jump. By February, t932, with the field practically to themselves-there were some oldtimer ten<cut varieties with purely local sales, notably Liggett g: Myers" Coupon, but they didn't seem to take hold-White Rolls and Paul Jones were producing some 35o,ooo,ooo cigarettes per month. Only about 4 per cent of national production but still a long stretch above the practical zeros of not many months before, Olympians Hill, Williams, Toms, and Belt sat in their fastnesses and watched national cigarette production continue its decline. In January, Reynolds' Mr. Williams (Camels) cut out all news- paper advertising by his company and announced further curtail- ment of advertising to come later (its radio advertising was dis- continued in May). Mr. Williams remarked that he took this step because he felt that with the public mind reacting as it did to the mffortnnate bttsinegs conditions, the advertising dollar was not producing lull value. He believed in advertising very strongly and expected to resume it when profitable. On February t, t932, President Reed of Larus g: Brother Co., mamffacturers of White Rolls, announced that his plant had gone on a twenty4our-hour, three-shift schedule in order to meet orders. A month ]ater came more news. IN MARCH, t932, President George Cooper of Brown g: William- son Tobacco Corp. of Louisville, Kentucky, reduced the price of a fifteen-cent cigarette on their list to ten cents for twenty. This cigarette until then had been just another one of the 3oo..odd U. S. Can Four Kings . . . P~b a,o~, GEORGE COOPER BRosv.'~ g: ~,VILU~.~SON ToI~o~o CovJ'. VClLLIAM T. REED L~c~ k Baoraza Co. .4//~lee WOOD F. AXTON Ax-roN.IClsnE:g TOBACCO CO. o t .l~ue ~/ REUBEN M. ELLIS CON'TINF_NTAL TOBAOCO Co. GEORGEW;LSHI NGTON HILL ,-k~Emc-~X TOBACCO Co, S. CLAY WILLIAMS R. J. Rg,e~OLnS Toaacco Co. • . . Beat Four Tens? THE Iour kings at the left are the presidents of the Big Four U. S, tobacco companies. They have o! recent years produced 95 per cent of all U. S. cigarettes. The four tens (abo'.e) are the presidents of the tobacco companies whose ten-cent cigarene~ ha~e reduced the percentage of the Big Four to less titan 80 in the course ot a few months. Depression phenomenon, say the four kings. Logicat and natural and ,sound, ~ay tile four tens, ' varieties of cigarette. Several hundred thonsand dollars had been s ~ent on it in ~Chicago, but it was completely unknown else~here It was called Wings. The reduction in price, throwing it into a field already plowed by 'White Rolls and Paul Jones. hnmediatelv caused increase ill orders. The Brown ~ x.Villiamson Tobacco Corp.. manufacturers of many time-tried braads of pipe and chew- ing tobacco. Golden Grain among them, and of Raleigh cigal ette~. had been since 193° wholly owned by the Britisk.American To- bacco Co.. Ltd. This is a point to note. Sir Hugo Cunliffe-Owen, Bart., tall, genial, suave as a stage Englishman. chairman of the board of British-American since ~9,~3, and one of the great world fignres in the tobacco industry. has put his organization into the ten-cent ci.ozarelte h,sine~s ri...:ht up to the ~:eck. and he expects to keep it there. And the British, American Tobacco Co.. with an average net income for t93o and 193t of something like $25.ooo.ooo--more than half the net of the American Tobacco Co.-is a reD," formidable organi- zation. It has large tobacco reserves in practically every pint " 45 " ; 5 f~ Tk40I 0350245
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of the world and practically unlimited capital to draw on. Nor, for many years, has there )0een any love lost between British-American and the Big Four of ,Mnerican cigarette manufac- turers. It was formed thirty years ago to take over the export business of both the Ameri- can and the Englisb tobacco trusts, the American owning two-thlrds of the stock. When the American trust was dissolved in 19tl, the British-American stock which it owned was divided pro rata among the American sub-companies. Today the Amer- ican Tobacco Co. owns no stock in British- American; the English trust, Imperial Tobacco. probably still owns its third. The present American Tobacco Co. has been successfully invading lmperial's territory- with a cigarette called Kensitas. Imperial's directors may well be smiling at the thought of the British-controlled Brown $: INilliam- son's invasion of American Tobacco Co.'s own home market. By April 1932, the prodnction of Brown g: "t, Villiamson's Wings had doubled. Al- though production of White Rolls and Paul IWI-IIT£ AI.SO RAN White Rolls. o[ RithmtnLd. Virginia, one o[ the ~ioneer~ in the ten.cent field, has been displaced v Wings and Twenty Grand. production tint six nlondxs o[ 193-*: at least 1.5oo,ooo,ooo ¢igarenes. Now falling oft a little. Jones had begun to fall off a little-making the big tobacco companies believe that the introduction of each new ten-cent brand immediately killed its predecessor-the in- troduction of Wings as a ten-center almost immediately ran the ten-center percentage of national production up to 5 or 6. Not a very alarming figalre but, in view of the fact that total cigarette production kept on declining, more important than it seemed. By bfay the Wings production had actually affected the net decline in national produc- tion, causing a sharp check. Outside of trade papers, Wings made use of no adver- tising other than displaTs in cigar stores and the panels on its own package u.pon which were printed exhortations to an im- poverished world o[ smoker* to the general effect that, as raw nmterial and everything else had declined in price, why not ciga- rettes? Cut out ballyhoo and fancy packing, said Brown g: Williammn, and let the pub- lic have what it wants, a good smoke. You can't smoke cellophane. Brown 8: %Villiam- son added pointedly. tobacco indus.,, noiog to that it was feeling the depression, viewed the arrival of them three ten-cent gnats with interest rather than with alarm. Depression phenomenon, was the usual comment. In May authorities, experts, and "people in a po*ition to k_now" were saying that the production of ten<ent cigarettes for the year would not exceed 6 or 7 per cent. Some said f- Early in June, 19~2, came gnat No. 4, large and loud a.* a horsefly. A mile from the Brown ~ 't, Villiammon Wings plant in Louisville, Kentucky. sturdy independent .~Lxton-Fisher Tobacc-o Co. flourished. ]t had climbed into national prominence as man- ufacturer of the nation's best-selling twen- ty<enter Spud (see page 5t) and had a slightly top-heavy inventory. ($3,430,000 in current assets of less than .~4,ooo,ooo). It de- clded to launch a ten-cent cigarette. S~me time before, a jobber in Louisville had sug- gested to the Axtor~ that Twenty Grand would be a fine name for a cigarette. The Axtons agreed but had oo cigarette to christen. They took the name, produced a I eve n" ~i 1 G|OARI[TYES I Ill d ITE CIGARETTES BEST SELLER The Brown lk ~A'iltiamtort Tobacco Corp. re. duced the price o[ ~Nings. originally introdtt¢~ as a fifteen-cent cigarette, to ten cents in March of tkis year. Almost immediately Wing~ took the lead ill the ten-cent field. Production had reached ~SAmo,- coo a day by the first week in Septmb~. Mu¢. tion at this rate, if continued over a ,,-ear, ",a~ttld make Wings at least fourth among a]f cigar~t~. What the ten.~mt ¢igarett¢ is gaining the Big Four is losing. One Eleven (bottom, left) ,,,,as an expert+ meat o[ eleven years ago when America Tobacco tried out the idea o[ a cigazette to seI1 for tesa than fifteen cents. One Eleven now sells va-maty.fmar t0t" fifteen team The other brands below have mainly local sales. few random packages for the sake of copy- right, and put the idea in a pigeonhole, In June. t93~, that pi~"onhole-bore a squab. Tbe A.xton.Fisher plant, already flooded with orders for its famous menthol-cooled Spud, went on a twenty-four-hour basis and began producing Twenty Grand--to sell at ten cents for a package nf twenty. With Wings already in production and with Paul .Jones and White Roils still selling well in their field*, the volume of ten-cent cigarette production jumped to about ~.c~o,ooo,ooo per month, about to per cent of the total rta- tiona[ production. Ahhougb Paul Jone~ :Ptllgi :
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l~'~ - "~!/~ ,3~_~ .... AXTON-FISHER'S LONG SHOT Liking the name Twe-nty Grand, the makers o[ Spuds bought the rights to it several years ago, got out a few packages for copyright, ia June, 1932, they launched it as a ten-cent cigarette. In three months, although on sale i~ only nine staves, it had captured the seoand place in the ten-cent field andwas outselling all others in the hxalities where it could be obtained. Present pro- duction of t 5,coo,ooo a day can fill only SO per cent o! orders on hand. Coupon (below) is the only ten-center now made by one of the Big Four. An oldtimer, it is still sold by Liggett 8: Myers (Chesterfield) in the South. It can be had in pack. ages of ten [or five cents, is now being pushed in the Middle West in a mild way. and White Rolls, feeling the competition of the newer hrnnds, had beam to fall off, Twenty Grand and x, Vin~ each increased its pr(ghtction so that by August I the total ten-cent production had reached the astouishlng volume of t5 per cent of the national total. By September this had beeu iucreased to nearly ~o per cent. with V¢ings producing about 35,000.000 a day and Twenty Grand about tS.OOO,OO3--at the rate oi to,5oo.ooo,ooo and 4,3oo,ooo,ooo a year (compare with r.abulation iu column three) At this rate Wings was ruoning fairly close to filling iu orders. But Twenty Cou o , , Grand, the product o[ a smaller factory, was able to meet less than 25 per cent of the de- mand and its manufacturers began to pray that no new territories would begin clam- oring for it. In October Axton-Fisher sold a new stock issue to give them about $ I,ooo,ooo for expansion. THE very impetus of the introduction of each nes¢ brand-first Paul Jones. then White Roils. then Wings, then Twen- ty Grand-seemed to carry with it much of the psychological result which the Big Four had spent millions oE dollars yearly to produce in favor of their brands and which the almost hysterical anxiety o| the cigarette smoker to find something new and cheap and satisfying was now producing for nothing. By September there was no question about the attention which the Big Four were paying to the swarm of insects en- croaching upon their Ol~anpus, for the Big Four had to [ace the fact that they were in a position in which they had every- thing to lose and very little to gain. In twenty yeats the national total had in- creased from 8,ooo,ooo,ooo to a high of over J 19,oo0,ooo,ooo in 19~o. The cigarette had become the dominant factor in the tobacco industry and provided more than 5o per cent of the total business of each of the Big Four--they also produce, of course, pipe tobaccos, chewing tobaccos, and cigars. The four leading brands of cigarettes-- Lucky Strikes, Camels, Chesterfields, and Old Golds-accounted for more than too,0oo,ooo,ooo of the total national pro- duction of t t3,46t,ooo,ooo* for the calen- dar year I93L Tobacco statisticians get their figures on cigarette production by studying the Internal Revenue Depart- ment's figures for monthly payments, by states, of the cigarette tax. Throughout 193~, these figures have shown some surprising facts. They are worth the carefol considera- tion of anyone interested in the cigarette indttstry. In so far as they concern the int- '*Throughout this article all figures on cigarette production re/at to the ~tondard si:e c:gareHe. which wezghs three pounds or less per thousand. portant cigarette.producing states, they are reproduced in full on page 9°. These figures show without question that all the Big Four have lost in ctgarette pro- duction during the first eight months of this year and are still losing, and that their totals for the year t93~ will be from 18 to 2t per cent less than those of last year. The figures also show that all recent gains have been in states which produce ten-cent ciga- rettes, and that if at the end of the year cigarette production has not fallen oil as a whole, it will be because ten-cent cigarettes have more than made up for what the fifteen.cent Big Four have lost. A rough estimate o[ the t93a production of the latter, based upon figures for the first eight months, would those the following: Lucky Strikes .... 36,ooo,ooo,ooo Camels ......... 24,ooo,ooo,ooo Chesterfields .... t 8,ooo,ooo,ooo Old Golds ...... fi,5oo,ooo,ooo A total some eighteen billion below t93t. Although these figures are only estimates, they indicate the relative positions of the four big companies. The t931 figures 1N THE MONEY Paul Jones. Continental Tobacco's entry, was one of the fi~st to get away. It led the field for a fes¢ lllOllth$ and then fell oil Still a big ~eller [pro- duction first six months of ~952: 8e~.mm,oo~). it run*, second to Wings in the eastern cities. ;, , . , . , :;it' CIGARETTES - 47 • i::iiiiiii/iiiilill~
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,*i~Jrt THEY RUN TWENTY-FOUR HOURS A DAY Three ~h ft~ s the working ~hedule oI these two Louisville cigarette [actori¢-~-The Axton-Fisher pla.nt {above) i* pr~IucingTwenty Grands at the rate of 4,5oo,ooo,ooo or 5.ooo,ooo.ooo a year. and wdl be m- creasing that rate in the next few month~. Eight hundred employees are given free meals while they work. Brown & XVilliamson's ~ing~ plant (below) is producing more than tWlCI[~ as ~y cigarettes, Kentucky, as a result, shows an increase in cigarette production for the first eight months o[ this 'fear o[ about three billion-against a net decline in all other cigarette-produclng stales. • 48 • were larger than for any year prior to 1929 and were sufl~ciendy favorable to per- mat the four firms to pay to their stock= holders more than $8o,ooo,ooo in dividends in 1931 and to carry to surplus $3o.ooo,ooo. In spite of the falling-off in production for t932, all four will show excel'lent net profits this year as well, because of the lower price of tobacco and other savings. • • SUCH is the simple narrative o[ the rise of the ten-cent cigarette, the most excit- ing event in the U. S. cigarette industry since the dissolution of the tobacco trust. The productiml of ten-cent cigarettes is still mounting and councils convene about the board tables of Messrs. Hill,~,Villiams,Tont$, and Belt. Few statements are issued, but those that are are as misleading as ¢om- muniquds from the Chinese front. But in January, 193t, it was R. J. Reynold*" prsi~ dent who "said: "Camels will not be d~ concerted by the advance 0[ a competitor so long as advertising is mainly responsible for it; but when a cigarette moves up with- out a maximum o[ advertising we will take serious notice." A whole group o[ comp~i- tors ha* moved up, mainly without ben~t of any advertising-and is still moving up, Here are some of the vital statistics and the prime considerations involved in this new competition: Cigarettes o[ which a pack of twenty art sold for ten cents bring $5 per thousarldl retail; at fifteen cents a package the retail price of a thousand is $7.50. The costs per thousand to the ten- and fifteen-cent manu~ facturers respectively probably run some- thing like this: Ten-center Paid Jot: Fifteen.centre $3.00 Government tax ~tamim $~.oo • 57 Tobacco (@ ,z5 per lb. ,~0 on the factory floor [or ten-center, .~9 for fift e~en.cemcr) .81o5 _ Dealers ,]85 Factory c~ts (labor atnd materials) Delivery Selling and advertising Depreciation and administration .o5 .o9 . .065 $4.7685 2315 Profit Sb.oo Retail price ¸¸lily ==== t4~CI= .zt .05 -55 ,io ~-t74 $7.5° The profit of the fifteen-cent manufac- turers will be subject to a management bonus of something like to per cent, a feature which need not ar.d probably would not be inchlded in the teu-center's cost, Front the prolit of both ~arieties sltould also be deducted a I 2 per cerlt corporation iucontc tax, lea~ing a profit o[: [or the ten.center for the Efteen-center 52038 per thousand .q 97io F~_r uhou~and These figures are, of course, approxima- tions. Between Y, lanufactttrer A and .Mann. factttrer B any one of the ahose items (ex. cept the tax) tnay vary seseral per e~llt. They are, however, the consensus of se~'cral /3/-:dO "I 0350~4~8
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producers' costs and serve to indicate the asic relationship between tell- and fifteen- cent cigarettes. Manufacturers of the for- mer, for obvious reasons, do not admit that their tobacco costs are less than their more expensive competitors'. The sig~lificant things to note are (I) that the stamp tax for the ten<cut cigarette is the same as for the fifteen-center; (2) that it costs the ten-cent manufacturer very nearly as much for factory, deliveries, and overhead. Which leaves the war to be fought on three fronts: tobacco cost, adver- tising expense, and net profit. Oil the basis of these considerations and one or two others presendy to be recorded, the fiheen-cent manufacturer makes this pronouncement: the ten-cent cigarette is a phenomenon born of recent low tobacco prices and the depressed state of personal incomes in the U. S. It will disappear from the face of the earth very shortly, because: (i) It lacks "quality." The tobacco v..sed in the ten-center is in[e'rior and will not satisfy the U. S. taste. This is the argument most often put forth for publicity purposes. It is difficult to answer scientifically. To begin with, ten- cent cigarettes differ one from another. Many an able authority reports the tobacco quality of the best ten<enters to be the equal of that of any fifteen-center. The Big Four reply with "exhibiu"--a carton of ten- cent cigarettes broken up, their tobacco graded. That part of their argument is ~cious. For if inferior tobacco (at a per price) is still acceptable to the public, then interest in samples remains academic. On this score the Big Four's advocate cites the fact that each new ten- cent cigarette has overtaken its predecessor, drawing from that fact the conclusion that even if the public, economically pressed, has turned to ten-cent cigarettes, the pt ~blic rentains unsatisfied, keeps switching rom new brand to new brand in search of the impossible (quality at ten cents a package), And hence will eventually switch back to the fifteen-center, disgusted with the in- ferior product. Having exhausted quality as a topic, the fifteen<enter's next argument as: (2) Profit margin. No man can mann/at- lure and distribute cigarettes at ten cents a package and stay in business. Put another way, the public may indeed be so depres- sion-scared that it thinks it can aOord to buy only inferior ten-cent cigarettes, But no manufacturer can long s.pply them-one by one they will get.disguJted or go bust. Now we are getting nearer the heart [Continued on page 86] ADVERTISING AND THE TEN-CENTER The Paul J .... dvertisement below appcared in New York. Boa ...... d Philadelphia pal~ in November 193t It was the opening gun in the great ten-cent war, It was not repeate~ ;me it ]u not be repeated. The margin o| profit i .......... ga ...... I~robably ..... ;er ..... y-tfiVe:eenttos per thousand, The advertising done hv the Big Four on their ¢tgarenes costs trom t,~-em '-u thirty-five cents a thottsand. P~rown ~ "0,' iamson producers of ~'ings, have hit upon a i~lean* of getting advertising direct to the consumer. Evetw so often they change the blurb on the swings pack- age. On the right are current examplev--they get thousands of letters in reply. READ THIS...A TIMELY "AD" AMERICA - Here's your cig / • 49 • ~THENOT UNIFORMI A baseball player is not judged by his uniform or what heseys he can do. So with dgarenes. WINGS give you a 15c qual- ity Turkish blend at 10c by omitdng fancy wrappers tad expensive advertising. ~TO VOTERS ! Until WINGS lSc quality Tuckish blend was available at 10c, cigarette smokers did not have the chance to vote against fancy wrappings and expensive advertising. What a landslide for WINGS! ~REALA FRIEND! Many smokers say"A friend recommended WINGS". He's a real friend who en- ables you to save 33Y~% on your cigarette brit. NO, 49 This number means that we have used 49 different "panel backs" in our messages to the smoking public. We have varied the wording but never the theme.--15c quality for 10c by simply omitting what you can't smoke! ~ ADVERTISE? YES!--we do---by the best method---word-of- mouth of a satisfied consumer. 15c quality for lOc. ~ PARAPHRASE? Millions for quality but not one cent for bally- hoo. That's why we can give you 15c quality for lOc. ~NO FLASH Just real 15c cigarette quality for that lone- some dime because of no fancy wrapping or expensive advertising. , gtgwi & ~'illut~Jow ToI.*¢¢o C*. R T,' O 1 03 5024. 9
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SPUD MENTHOL-COOLED CIGARETTES 7¸¸¸¸ / ,/ THE APPEAL TO ARISTOCRACY After a careful prellminar3' barrage, .a~xton.l:L~her+~. u~elr: rising campaign for Spuds (s*~e pages 5"~'55) ~urned to conJotb dating its po,ition. That posilion, as befits a dignif~ed tw~ll~ cent cigarette, is in the world of fine cloth~, fine man~e~, a:~d fine living. From ~93o to 193~ quali~y and distinction have been stressed equalhr with moutf~ happine~. Result: :l ri~e. while sales of almost all clgare~tes abo~e ten eenls fell off, ~1o FOR 20¢ (U, $-) • • • 50 • 7",',qO "1 502 50
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i I1[ the Illatler. "lhe tell.(ellit'l has indccd t)HJblClllS, ~lVith llO al|,, el tiM ll~ prt)~, [si¢llt he (all tilt (HI (lilly OLlC O{ t~() itelllS; tile l ,),l I)f )lJS IoI):l~ ( 0 alld his pill{ it.~. The tame ue hate Ri~en I>ledicates aii olleratillg aud dis- tlil)uthv4 ctli~ icnty the equal (,f lilt' tCli~Cl Ci)ipor;itiolls'. li the tt'iitClll¢l slips lie h:ls tiot far to fall behHe tie I eat lies ohli~ iou. J ust how dall ~ClOllS to hiln is tile Ituctuating llli(C l)l I()h/ll(O lie will pres- oilily ol)~ctxe. Iltlt if he call Ctlt ~[()se it} tile figures set dlll%ll t:tll(l tile', are repleSelltati%e cur- leitt costal, [Hs l)t'olit mar'gilt, +ntall :is it is. is tel ta[nI) t:tllitigh it) keep hiltl ill bLl~inexs, llllt it IS Oil jlJM tilat Doint that tile tiltcen-center's al~tlllleDt t-illlleS :o its clhnax-juq "ell<tit,411 pier- it to Stax ill btlsilless" i~ l}Ot CilOII~[I pliitit I)ll wlticll If)li])t'l - ate the [L S, cigarette illdtlstl)' at it> 1{t3(i pate hctaltse; l;t) 7"i~, itt+[~lxtl'b' Illtl'st Nf[Uf'I" eX'C--'iU'L mU.U +l+hv in,Iustiy a't+~ DmT~ u], b', mh,e~li.dJ~g. It l, b<(,.,,e ol +,icaa like "l¢etu h /<Jl a Lucky instead o[ a Sweet" and 51o.oorLt)oo advelli+ing ap- p~+,lJHtlti+.c~ that thiit)'+odd ~p/i/f~o#: lrttiti, :t'otHe#l, and ruell ,hdd,czt ],~+l[ lithe white /miser .UI~ uj smotdelirlg tol, at~o. l'~rant tt)rdt:~ i¢~,o(1(J,¢)(}o+ooo i#l ,~¢21[ ¢(~' ?leH~]1 12#J,llllt)J)#)¢).t)¢jtj ill IU~li Iltc [~*t'~tii¢' (!t t/it ]~)r¢ltt'l[ a':,id /l+,i~ted ~¢~aH'ttr" ¢l.'up('~ t,~¢'nlr,l'e that p)c~liie rim[ b,l¢ ,;; ,+Ire" , Itl:,e u,iH s[+dc. ~tJ'~X" IVI~ arc IlIOt O111%" ClfISC t(} hut at the healt of the big ci~a- reue lll:llltlLlttllrerf teal ~ellti- nlelItS +\italy, sis of thein is vci)' aimlDc: i+ the ten-cent cigarette suttct'(Is, it will (Ic,alOV Ill all, "Ihc beaut/hil thing ~{hieh is d~c a(h c: tiS{ll~ Slillpt~i ted ~tl Ill. llilt: (}t tilt" elf,lit.lit" illdtiStl~ 1, fit :~,llap~e The tell (¢lltt'r lit)ill i+[tcx ili >ll ill ~l'()tlll{{ t>l, )x~ el{ ;lilil hiiltt'~tt'd t~ lilt' hltcell- lilt: illtLli~ll ', ~ ;l(]t t't t ]~i!l!~' lit'lilt i~heth¢'i lilt.! lt'lll(~liI. i I~;ll tilt' ( ;111 of ( ;ill IlOt MIt t ¢c:t, it ilitl~lll'l. Fin- lht+ ,~,lCalc.r L~:)+l¢l ui .d[ T ItI: it'll (t'IILCIS" Sil)l\ is llOt ",() 'jt)OlliX. "there is allotlt I!tt" It'll telitCl Ihe oplillliMll O[ t,uHh. DCl~tC'>siou. hell{ Busi- llC~s xx;l~ lifter IleIlel. "Flit' I>)- ~hM,>qical clte(t (it dcsk~ pilcd Ili~i ttitll UUliIlc~l old('l~ el ( I;i¢ kin,; ietc~raphs denl:utdin'.~ fill)it,, illllrc. IIll)le is feh t'xerv- ~llele lille lra,,els--Iiolll [a(lor) ill tactory each on three-shill, Cig ., ,isk ad,ancmg Stlch a One Out of Every Five arettes ~{',,~;'.' With ,,,+ ~, ....... it+,,+ cent cigarettes unjnmcn, this is [C',.lt,.r.'d p,>l,a p.g,' 4!~] SlUt to be at ditht ult ptoccdule. ............. +Ihc cigal-etle bushwss J+ t:ot like tile sol't-drink I ~l~ no., ill. t If'tilt y-foUl -hotu +a-(la,, plothlc- tiOll, But oile Si~llillCallt latt allilllt telt-Celltels, e~,idcnt ill theil llist(Jly, littler I]Ot+ Iw o~er- looked, "the Itiakel'S ale lit) tit- by-night hidu~tlialist~ with credit ellough [()r only a sitigle IllaCtl/lie, lsay for lie illole thali a hatllthll t)[ hithclto tlnem- ph)yed salesnieli. Three of them are old, established, stable te- l)alto companies. The tourth in resotilCeS and experiellCe ix a matth lot ally olte of the Big Four. if lJle tltlsh t>J ~nccess i~ Oil the cheeks of the tell-Celltels, thete ate hard lacts ill thch heads and to the SColllflil toll- telllillllS of their estalJlished COlilpctiloiS tilt:) relil~: (ill (]llilltl)2 tilt' pltitJ[ o[ the plldithlg is ill the catillg. %\'e ~a% liltI" lOlJat( ~1 i~ ;i~ gelid, l~ttl, IJc:uci ,till, tilt, puJJhc ~;i)s st> too. Ott ptofl~ tnd#gHt: ~e kilO~ our lJtt~htess {lilt[ %',e Call keel) ({O~,11 Otll" other cost~--in tact, they diop IJy thcmsehes as oln %O[11111¢= eNpalll]S. }~121/le tilt+ only leg tile pi~lphcts o[ ottr (ll)l)llt h;l%e t(J stand Oil i+ the tt?M +)i olil [()b;iLto. Ill Ichtitt,l[ the telt-tellters tall altetl(iOll to the histol~ ~Ji lt.~bclCCt) plice~i atld plt)duciion. Fol tiic l).l~L LXxCllt% )l.fLltS 11112 I)IiCC t>i ci~a:ctte tot~attu has a%t'[a~cd liilit.teell ccIIL~ a pound, 1[ the \VaI'-aftfcct ed % ca1 s tJ[ iIJi8 anld lijig, when dlurt- a~e tit tlOlS l,lli tile piile UH lO LhiFL%< -[~Jllr ceiIts. X~ L'i c" e\( cpIc(l this alt, la~e ii<Jtll¢l I}o tethl¢ e([ Io ~iNlec[1 il211P,, .~.~ tlli~ t'~lL'll[~- )Cal peliud mchak-~ (!cpw~cA as ~t,t[ as inilated %t'LllS talld a lll;t}ol'it~, tJl the laltcl, tt i~ ;l lail itltlitatioll (I[ ;t IL'.l~oII;l{)le Ill:it l(q L(~l~;~l{<), \~,e ~:111 LL:t{ ~i]] Jzlake It*ll CCI]I ( J~:llt'itc~ ~l: HI.It Ii'~tliC alltt lll;tkc a till)tit c)ll ihc+u, ihe l>ig Four (iRaieltc lit,it l tli ,it {Ill t'l s+ to~c't hcl ~xith Ihc { 'li h tidal [.e:l[ I <~h.i( c:~ ( :~ L. Cdll II~t' lens :i::ill t]ilCt~ ~pt;tLIc'lS +)1 I[lc [>illit>ii lJ(Itlll(t~ +it (i~il- l'('ttc t()l):h (:) tt~uall~ t)l, )(hit i'd. ] ',tat ica~c~ '2-,o<)oo(,,,(, ]~<)und~ and t;c l t)tl](~ lllakt' ,t hu:uhc!l l)illhm ~i;,ilc'ltc'~ (~u[ <~f '-+51>.- I)4)(I f)(l{) l)tJtltt<]~ +st I<~//<l¢(+l I':tlOll@l lO ~ite tls ;L I/ct l~:(dit o[ ~91 l.O(i(l (lOll ( )[ if)ill 5e tilt= t)l itt' i Ji IollAi t tl nli~hL rise ~ ithout illlV cttort Oll ilie illalitlfacttllers' part+ The Big l,'our contend that it will risc. that plices hate beell tie- pressed for t(~> lung, that [allll- el~ will ~tarxe or ~ill l)hutt less l(Jba(tl). Pi t'~elil pl [Ce~;, sa) the tell-CelltClx, are Dot depressed, }Jilt ale a rettll'lt to lIOllllal after the |~st-\%'ar intlatiOll. You eal} argue Ihat p<.lhlt for ;ts tOII~ ~tS and ~itlt as lllally statistics as ',ou please. OF TtIE Big l:om's objec- tJoI}$ to t})e Little ]:oLIr'5 a~ thitics there renlains Oll]y the last point-the rnt4M--for tile tat+ tel L(} al}st~er, Their allsWer is llOt hart{ tO ,4tless, [t is prilliarliy a ~lil li,~ ot the shoulders. II (}iir leli-Cellt cigareltes tOlltinlIe tO displace your liiteen-cent ones, ue ~]lOUtd t~orl}--Ihelc ~ill al- ii<l)~l I)C etlotlgb cigarettes SlllOked ill the U. S. to lnakc 115, happy. Moreot er, if wc are able to keep a Stll}statltia[ )art lit lilt! llatil)ll'S C g:lrette |}llSiIIeSS at tell telltS, yell IllaV %cix+ :tell lilld ()lit that )(.ill ale lXI'<!ll~ al>Olli Otlr inal)ilitv lo ad~elii~e in ol- der to help I.¢ep it. With a pl (+lit lit l~ellt) cel)t~ pcr IJl(#ll~{llllt a'~;i[i:st ~,l)tLI'; o[ ,L :[(,it;it a Iht)ll sail(l, lie calltl(l( ,pcitd tl~CILt'~ i)r e\¢ll tell nlillhm~ a )t.,il ~)ii ad~elt{siilg, but Ihctc i~ lie rc;i thillg. \Vc ha%ell t h:ld to yet. %~,']iell we {io ha~t. It.t, We will. El'J:, ]ii)tiex~r, is l]ot quite ~<) simple t+>l the lt'll-i('lllL*I" ;IS lic" IliAkt'+i (Jill, "['liCit_" i~, h)l iil~lallte, the ¢Itlt:~I!i)ll (it tot<t, 1¢,i1(~% C;l~h- i [)i.; [,1( tell 111 lhe I(ll?al(i) hldu.ll~. II ,i teli- tCllt lBallulaltltlt,i 'A;llll~ it pr()i- it (li ",7) u<)o.ooo, hc ',% ill hat e m lll;ikt: .llld "~C[[ 1~xtl::% hx.¢+ ])ill[Hit i~;HClic'~ })% ~,> Ult'.tH, Htii~+>~- ~ii)h: , I u, kit'.. {:.l~::cl.. (:hc,:<l fields tlalC /ill (.l<lHt" -el iti ;t '~'+l,,iI xt';lIb. If ]IC iS t(1 ITItLC Itktll['~ fl~.t' I)/llilltl ti~;tlt'ltt'~ ill I{l~t [lc thai ill;lilllta(ttll'e, H¢,alq\ [l[iV, ~t"~, eiI in;]li+tli })oHiid~ of t~l|):ll ( o ~hith, l>,tid hi: in It';ldv l':l~[I ~ill i;lll h)l the H;ll](![II~ (lilt :it ,i])Ollt ~ (tltiI.OliO ln]c~ he h;l~ ;i I;il~e < ;l.;tl ie~t'itc llli~ /till l~t" ]lard to get, for he ~ill ha~c to ('(]llX ii]te t):lllkCls ill:it tit+ ~ it[ ()e aide ill ~ell attd nlake a t)lO[it Htl l]iat Inall~ ci~aroltt~s tO warl at/t to l~hich au~ fl) by-nizht w/th a f¢~ thousand dollars capita{ /llltt all elltpl} IO()111 Or t/Vll (:;in nlll~,cle his ;~av :tlld ('gtptllr¢* the [ruits of 5(tiller)Ill ClSe'S :l(t.x err[s- ing campaign, it reqtmes I1Ot elliS; tile cash alid cFedit lleces- sal-y ~or lolJacco [)llrch.tse bttt also the purchase ,,[ the latest and fastest Dpe o£ machinery. A ci~le[le IlllilllLf&CtillCr CalttlO~. a(hie% e t tie pl <)(ill( tit)il ncee$- sary to a i}l,)til at ion ¢ cnt~ utdess he is pioduchl~; ;ll least It+ll lttil,. Jion eigarette~ a day. To do this hc llltl.~t [l:t'~e the fastest pos- silfle pa(kin~ inachiue. New Ink+ chhles "~vhi(h x~+i) k It, hi, :is [a-st ;is the old tprotlUCill~4 t,zoO tO I,~)I.)O ci~aICLt¢-~ a lliii}titc) are on the niarket at ~omethiug like ~1,~,0o0, Et+12ll Oll a t:~ciH~, k~tir- hour shift hc :titl ha~e to ha;e six or t, Tghl .~nlll ni,lc]iincs t.o llia{llt ailt pr0dtlCti0tl. E VEN if the ten-cellt i1"1,1111+ u|acttlrer is sttccessfu[ itt lillall('iltg lli~ elIOrlIll}LIS LO|)atX:O t)liitha~e :lIHI his Itlachine in- MalLilifHl, lie lIiiiM pay OUt hl (:lkll, till e%erv ili~lliulac{lir~la~ it;l) $:{ h>r t'~eiv thousand i'll;I- reties hc prtl(hltes. Revetttle st:imps nlu~t be bouu.ht inepaid t() trot into his pa~ kill~ nlaehine ;lIl(I ([)lilt" qlll[ ()]1 t[Ic p;ll:kage.~ 11 hN p~du¢l:,m is twenty.ti~e billi,m per tear, he ~ill ileal ~2,~t).l)l)ll x~l)t'th O[ stamps every x~ot'kh}g day. More cash. Unlil Ihc l,+~t few )e:lr~. a cigar(~tIe lllallH[;l(ttll'el IHICl t('~ l)av O't'~{ t;t~ll quite litcrallt, trottinI to L'. :t: h'dL1 al olti{ i's ~ ith ;l I)nlglng [)i2 t~f it %t'\t'I;ll lilttt'~ a l{av. lhc ~,,,evnmt'n: x,,,uld n~ii: at(opt a ,ertiiicd t:heck. h,~ln Ihc I:lr<.,e~t .f !be tobacco t+)thi~;lliiCs. I[ tilt." icIt tellt lllllLl~l~ +II,~<IIIZC?" }~)¢t(',¢~(:~ liP; ~+l~it:z[ ~, q !he ptl: ];~J~c Nt ~li+lkill~ tt'<tNe ,>Nrl.~. e:.ivr h(- ~,ill lie head- Hi4 t+,x~at'd the x~hll]p,),,1 +)1 till- :, ivhi~ i,u[)+~l:ite !Y, eritt-:lC[ ill /~ [li, }1 ]11' iS I[kt'l'~ lO 1¢)~" tllllC!t ,>i hi~ 3(I%al'tf:l~e ol~l'l the Ilia I::lllr. X,n has the I[[c ++[ the tell- 4 i'll1 t i2:lI'Cite been lollg elltallgll. :c'tt,liti]x, tl) allsWel" l[le StlSpl- < i,,l~ rhi: <l hi.to pall (,t its ,cries :ue ~till dlle Io iiltx ehv interest ,%,lit{ lilt! le11,1ellt })lt)llll)ler it c~wlitialh it ])e;ll \~,'hal price [fT:,,zri.~+,,d rm page ,<¢8] • 86 •
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Je WALTER TH OMPSON COMPANY Product and market research Merchandising Complete advertising service in newspapers, magazines, radio, and outdoor :In organi:alion operalin~ on-llle-~ronnd in the market centers of the world .NI'W 51IRK • ;2!1 Lcxin~,tor~ '~cnue • 1 Wall StreetCHIC'~GO • 410 N,lrlh Mkhi~an A~e~ue SAN I-R~,Nt IM)"~ • I~;O~F~:,N . CIN(IINNATI • f,T. I.()UI'; • LO'4 .~.NC, ELE~, • M(~\TREAL . Tt~ll.iJ2x[~2, L~mdon - Parl~ ° Barc~!~na - .~toekholm • Copq:nhJgen • BeTtln • .',n~w~rp Itu~t~arr~t • $ao Paulo • Bueaos Air©s • Jol~annesbutg • B~,mbay ° Sydn~ • 85 • ° rqJ';40"l 0350252
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I of Fortune . a famous Lawyer and Diplomat says: ".... Very instructive and inter- esting... In style and content quite unique.., cannot fail to attract a distinctive reading public." jo,t', W. f)Avts • a Sportsman-Capitalist: ".... Great interest for all types of readers, . . . tile articles cover a muhitude of subjects.., are attrac- tively presented. The pictures and illustrations are unique." C. V. WmrxeY • a promi,e,t New York Ba,ker: " . . . . Certainly one of the most at- tractive publications that I ha~e ever seen.., provides an invaluable source of accurate historical t}.tcts on inany o[ our most important national bus- iness enterprises." W. H. BLNNEFr P,¢.,.. ; i ;i~:, ,~ kd + E::ll 5*,.r ~ lhl, k • a lcadi,g grai, met(ha,t: "[:{)le.lt'\F is the one bo~}k that C(/tllt.'S tit (')ltr }t(}l'llC that t read from C()",'cr tO Cl)Vt't%'" F C. ]hu>l 3.1: KI /¢ ]ll:bOlH? If IS | Ilf+'*l.\'KgS .lilt; tZI3.'E tTT II.\'l(fl Sl'CIt I{E II)EleStIIt" +I.UO,X'(; TftOSE II It0"@ ST IKK 13." ,llODl'.l¢N [.\l)l "~TRt IL CII'ILIZ. ITION IS (;t{E ITE~,T. -For*curie One Out of Every Five Cigarettes [Conti,~ued Darn page 86] his etononly sales talk. the tla~ the next boom begins? Will he continue to I)e ,iatislied with a small pmtit malgin? WH l-Trlt E R or not the doom Of the ten-cent cigarette is a[leady wrinetl ill these tatters, uhethet or not die Little Foul anti all}" ()tiler later additions to their ranks ~ill emerge tritun- phalli Olle }'ear. tuo yUtltS flOlll llOW. there is no dotlbt ol- tile tact that tile tell-cellt cigarette is here today. And here today is tile problent of what the Big Four are to do abu.t it. ",Vidl tile soft Carolina air Calm tile harsher and less bland aunos- i)here of Wall Street) rusttin¢ l~ith rlllllt)lS. Thele ;lit :1 IC',x nlajor ln,)xes x, hh h Illi'4llt bc made ill the inexital)le caln- paign. "fhey are: (l) •+In attempt to uH+~e the pt,ce o! tobacco-inst ettough to wipe out the ten-+,rnte,+" [hoSt margin but not en+mgh to hurt thr fl~tel'lt-~ #~tlt'r. "f heze is alu)lzt all} MI111 idea ;It this tile faint Ilttt tlilnlisLak- ahlc od~w of restraint ,)f IT,lib., Buxels h)r Ihe Bi~, l',nu, t}/c lh ilish- \ram itan. and tilt: I "ni- ~msal t.eal "f'obacco Co rN,, I l.'. S. lea[ tob;uco dc+d,.l.h.m d]ill~ 12 per ~ent ,,t ;ill ti4atttlc lOb;lifO) :Ire :lh~,d;s ill tilt" lichl togcthel Iltllillg tile tm',in~ be:t+ 5o11, lixing at tile SilIlIC hotcI>. plaxi,,g poker :lll(t u:llill.~, [,~ ~CIIIcI. I[ '~()llli[ IIIH I)t'Ml.llt~q. t! their ideas t>l uitat Ihc plite lit [caf tohaceo Silt,it[el IK. i~cle 1,~ t Oillt ide ',~ hell ]/uv ill'~ Stiil tCr[ I1 the ~lop ix ]at&c irld huc t]:c'. IIIA'~ hu\ tic;i\ ii\, CICII ,It .I ~1[_'iI ! .... ])111CI It It in ~t::tL[ ifllt[ ]ll/,~: tile,, uilI Imx .~ lSuh .md ,- tl/c;~pl~ :Ix the\ tan. luatit}Z dwir ~,Itn[:+gulit s u~ i:tIi h,tlk ,,It tt'setxe slolks." ]lie lli~ l<ual. "It ~+ th," ~u,/on: ii, t!+c I%Z +£,t I,'ll¢" ,,l.t[Jan~+. ,,,, ,+P~ a ~Pmq,r,, .it t,)b,uro >.r/ic~,,.t e,,r ,el i~<'er,,` t*l' ,' v,,a)~ [n(.i.c+:,,,: i,+:,,,r,~*,,d ,,t ::l,. ,n,'~a.,,. ~,),t t,~ ,,. qi,,., ,,al; :: ;a-}ai.rh H :c,l~ .',;*, ;i,,t / i'l., .,,,.. 'l,'r/i ~t,~+.?; il.,~+ .2' ' u .... " to ,*,,- . ,umpr,,.u r,',,,e ,',, ,,, ,, ,,*n,; ,',, ,, r,n rln,r x+m* ,5 rl, u, i,rd ,i, i.a , i ,P~ +l~al,-tt,,. 1;*,,. , .+r+],ader~4 .\< ,))it, kllOW~ t(,lt<u~t]., (hal t+)b:t+r,~ ;~,r ],)o:,,,~ ;,'rill a..b' ,lLg'r th,' I;',t ',,,;I It i, ,i /,+/r gu,',, ,,¢,t ,,;,.iv, <,,,,.¢¢, , +lr,~lmll)' now t,a.,,h+< a,tg u+,, ,,a at, r lVruettc~ vonle tub,l+ r'¢~ t~ot Prr~lar l/a,l~z a )'car old plus Uni~clsal l_caI• (nay e~sily tun the pai~c ,ff leaf up in a given 3ear (this year's plices are 30 to me per cent higher thatl those of ;931L But x+itltout ill- jllrillg thenlsehes, they catltlOt do this [or lll;iny years running. If they do. tile}, will (a) stock more tobacco (hall tile), can tl~, ill,keep dleir three-,,ear average inlelltOl-y ligtne up t,, at point ~*t~ere it seriously eats iu~o proths, But. of course, in the meantime they might have put tile ten-cent cigareue indust~ out o[ Ilushless. t+-J Rem.~,.l .[ op/~ndtioP+ to .t~oz,ernme~dal +m l,'a,c oI eiga. )erie ta~es [)(.n 53 to $3.~o per I]rousaud (~l'~ trt .IeuePl C~.'tlt$ p~£ /,,;ekagej, a .~tep which (lie .~r.U¢'ltllllelll+ faced i~-itlt ale',rill. tn~ tet,enue~, mi,,~l;t taJ;c zc;Ha,, ottt hezng Puqed. ft is haMly likely that the t, ltcen-cent tie:net e (OIlily- flit% x~otlld elltellaill St) ex]~tt- ~i~e an idea as tile aiding and ahetting of measures ~(hich l*,nlld (<+st them ;is wctt as tile tell-lelltet olle tent per package, ~iflv t (+Ills pe~ tIIotln;ltld more. . ; i ]'/re b*g m ,l n u [0 ct u r~s ,,,qiIc[ t+'c[rtl+: lilt,;) J211('C tO I/l~f J, e(),';+--Cll]ICP b}+ +ncbtding ~tir,~t' ! i,~q)e./h,5 Ill +l ]ijh'ePt+ceHI j,r:t [~d.~e c)l Io~, tit It~tlf ~et+ul price c,b*( tu,n, o~ b', ~eduction o] the w;'+de*ah" prece to enable de#l- ,'~, t,, .,'it lilt<',+.., ,r.t pact~+ ]or a ;¢':. (,',it, [r~,. Stll]a a (t)lll-~e "~xtltlld iilll~Cle- di.ttc}~ deicat one of tile fifteen- ~ v::tcl.tartlinal tenet\: it woukt l tl[ <])~I1 Iltt' n~Itlct}, lllai~ill. .,[b ~, iJl~ }t>~ h)t c~>c'utiat adveF- 1!.!~'_' t)h~ctxc thaL Re}nold~,. ..)<. ,>(,it -no I,, ,m adxe,,MiN [- .m~ om~,idcralflc extent, t*a,~ !~ccn ,me ol Ihe Jtazdest hit ill ]JI,,t[ucli<lIl. gul that price re, dtl~ ti,m tta~ been considered ~s ;~',:c.l~[\ c,,ill(,lltell ])',' tile i~+,• ,limit, made ,;I the tnanul:~t> ttllCl's O[ packaging machhtes. I-'dt~)uah Ihe Stlillltler the'c has:e ,tu,lic,[ the costs of equtF, ping :~t+ l!ltir,r ¢ollll):ttlies '~it~t ~{e '.]tc~, It) ~.ll;I}) thilt'~ ci:4atcttcs i~l ,,:.c p;.k;<e. Such a step "l iI:i,{ IIlC,Itl :l ];llge iltxC~,Ltllel.*t in m'~ m:. hinery• Inquirie~ ,rff I]~is ~)lt. ]mwe'~er. are indicao I]~HI~ ()I i1<) tiler( (hall alerttt¢$s IIII the pal( ol the large llt,~l~|l~l- j.+,,ti,ned on page 9o] • 88 • ]2"~ "~" I / + -- I ,,'~01 03S02~3
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"The statistics prove the Tribune's suprem- acy conclusively. But they do not cover the important and intangible [orce o1 the com- munity contact advertisers can obtain only through the Chicago Tribune" Figures alone carl never tell the epic story of all that the Tribune means to Chicago • . . and to advertisers in this great mid+ west market. The Tribune is slngularly "of, for and by'" Chicago. Founded 85 years ago by Chi- cagoans-always published by Chicagoan~. Edited by its chief owners.., not influenced by remote control, nor expediency. It is committed to a definite, published plat- form of progress for Chicago. It is relent- less and fearless in fighting fi)r Chicago's welfare. It is the traditional wen pon against treachery to~-ard the public, the militant representati,e of Chicago's progressi*,e citizenship. In consequence it is heartily admired by hosts of Chicagoans, bitterly hated by some, ignored by none. It is a paper of broad appeals. It is a class paper and a mass paper in one. It is a woman's paper and a man's paper. It is a dignified paper and an entertaining paper. It is Chicago's chosen paper, and Chicago's heeded voice. Certainly circulation coser- age is important, and Ihe Tribune has it, as a resuk o( its independence, aggressi*e- hess and courage. But of far greater ira- portance is the favorable comraunity con- tact which it gives advertisers. The Tribune supplies both co'~erage and contact.., coverage as iladicated by: over 809,000 circulation daily, o,er 167,000 more daily circulation in Chicago and suburbs than any other daily newspaper, over L56,000 more Sunday circulation in Chicago and suburbs than any other Sunday paper, more home-delivered circu. lation than all other papers combined. . . . and community contact as indicated by the Tribune's commanding position as a responsible institution in the life of Chicago and the midwest. This makes the Tribune a living, vibrant force, harnessed to carry merchandise in- to the homes of iIs readers in far greater quantity than can be measured by any statistical yardstick. Experienced advertisers have created a phrase to describe the Tribune's position in this rich metropolitan area: "After all," they say, "if you're not in ~he Tribune you're not in Chicago." CHICAGO, TRIBUNE SQUARE • NEW YORK, 220 EAST 42ND ST. • BOSTON, 718 CHAMBER OF COMMERCE BLDG. ATLANTA, 1825 RHODES-HAVERTY BLDG. • SAN FR,',NCISCO, KOHL BLDG. • 87 • Ft T ,'K O I 0 3 5~ 0 2 ~4.
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facturels, e'¢idence OIlly that all po~sihle "next steps" are being t aiefttlly sut se~etl. Ill tile eye tvhich surveys the tlext steps is a realization, ulv douhtedly, that there is a great deal of "fat" in the fi[teen- center's cost sheet (see page .t8). Prolits can be (ut. advertlshlg call he cut, tobacco costs call be reducecL-readiug tile hand- writing that tile ten,center has written OIl the wall. (4) The Big Four couhl put out H2ccial "fighting brands" o] ten- cent cigarettes [or competition o.l>, pu~hi.g them only where ten-cente)s ale strongest, taking a Io~s on them if necessaD,, This is a practice which is not tlnkltotvll to large corporations. It is successfully practiced ill gasoline distribution (FORTU'/E, Oct.ber, Hi3"-')- Whether or not such I;l( tiCS '*',olll(l t)e stlt)ltg-arlll ell()ttgh tO llle~tt Sllch a drive as tile tel'~-cellters are staghlg is p/ol)}entatic. Tile oMy Olle Of Ib, e P, ig l:,,itlr w{tb, a tell,trill cigarette on its hands which could be /mmediately used for such purpose is Liggett ,~ M~er~. Theh {i(mpolt is an establi~,hed ([g;llctte With e'-:llcltle]v local- ized salt:s, a c/g:u cite I~ Ili~.:li. as if to contradiit the Big Four's alglllllents at)ollt cost el prn- duction, is wrapped in cello- One Out of Every Five Cigarettes [Cent.reed [)om page SS] phane-a thing no serious tell- center would omsider, l,ig~ett & Myers have begtln t0 pux/I Coupon a little in Indiana and Kentucky, the lion's mouth of telt-cellt tel-ritot)-. (5) They could train their ad. vertising gu)~ directly at the enemy, unite to shoot at their cheaper competitors as they now shoot at one anolher and at com- peting products. Cigarette ad~el'ti~ing has nev- er been kllo:~ll [Or its restraint nor, [()r that nlattef, for its ad- herence to facts. No impossi- bility would be a national campaign subtly btllStillg forth with such a slogan as "STALl" FISH S1-1NK ... So 1)o ('heap Cigarettes.'" Entlltlsi;Islll for a new ad~erlising idea cut to tlt tile hgure of tile present situa- lion nlighl tempt the big com- pallies elite nlole illtO enor- nlouS advertising approprhl- titJns, Tile: llndollbledIv would be tempted if they tllmtght it possible t() fill the pul)l{t iuin(l I~ itll $llch a hot I't;l" OI t'he;l~) ci!~H- tettes that the ten-c¢llt illdl!.Stl'V would wither a~ ay and {lie. The only hitch is that the fifteen- center is reluctant to make the adniissioIt lleCesSary tO Stlch a (-anlpai~l--that (heap cigarettes are ill a positi(In to attiact his attelltiOll. A Ll. of tile atmve possibilities are predicated upon action. defensive or retaliatory. They lie ill the hmne, although that [ittllle illa~ be so iInmcdiate as to ltm'onle present while these words are passing through tile printing presses. To date the public attitude of tile P.ig Four has remained one of studied and perhaps over-nonchalant indif- ferel)cc. Their advertising guns renlahl trained llpOll one all- other, not llpOll their eOlnl*llon foe. Perhaps they fear that as lhe taulpaigtl o{ "Reach for a l.ucky instead of a S~eet" ac- tuafl) benefited tile candy {nehls- Ir), a canlpaigll opeilly ag.'lillst the ten-( elli (igarette illlghl ar- t rat't a~telltioll to th;lt bL:te ttltlle, l~ llltl>t lie renlelll{)ered l]liii the plt'.~Cllt lifteei)+center tvas tile tell-¢ellt cigarette of the early years, eatinR into the pro- Appendix A: Ten-cent Cigarettes ductioil of tile slightly Inore ex- pensive cigarettes (like Fatim~,) %el'. InUdl as tile tell-centers are flow eatitig into lifteell-cet~.t sates, It was action that gave the Big Four their recent leading lxMtion. It is anybody's gtte~* what, from now on. will be re. quircd to nlaititaln it, MESSRS. Hilt, WiltTains. Toms, fllld licit [Lllll III~+ passive poker lacea toward the tmblic, scan tobacco prices and sales behind closed, dc~rs, wait. But i)rinted beh/nd them as they wait are those ~er)' l~i~e and very prophetic words uttered once by one of theh- executives, a~rendy quoted: "(:autels will not he dis- concerted by the adv;uice of a eompetitor sO long as advertis- ing is mainly resp,)nsible [or it: [)tit when a cigarette t~lo'¢es tip withoilt a IllaXJlllll~ql Of af|l'er- rising we will take serious "lx~ lice."(Fowr~ xr, February, 193 l.) Tile tell-tent cigarette rllay be existing in a false paradise. So may die P'tR Folir To wltat (plallel lilt; l%ilifl liltS' shift no one can tell. lVhethel: tile cOm- pelitors ill the tield ttrlay, who ha',e nlo~ed up withotlt adver- t{~hlg. ~li[! (Olitil~!le to II1OVC Ill), Illl;lilied ]Iv all)tllill~ tatll[ the '*',Ol(l of InOlltll 0[" $1noket~$. is a story [or tOlllorrow to write. Production i he (ig:ueltc bu~inc~ isonc ill whkh produtli,,n II/lee d,)lLal, .f lax, ale Ille ~)llt~ auth. uiiali~e fiRuivs ;l~;iilahl~2. The tigllle~; ;lie as st?tier ;is ltie ()thcr ride ol tile lllOOll, f.a/.Itllaliqiil t~.h)~l ~ill sc*~c l- make ileal whele tile 1{}32 li)~,s ill t2ig. Statistics 1 It,l~e tia~ed up~m hllelnal lt'*.t'lltie Re ~ii-ts of arctic pioduttlOll hats fallen, an.t what it is tl~at hns altli/lltte(l for the tile alllOtlllt O[ tax I)a I in earh (i~;tlCllt'-plltlltlC- tc(ent l.~ll~tlM incie;isi, ii1 tOl;ll piii(ilictiolt, A~;liliSt lhcsc tigtir~ )-(:,tt illg ~tH(t' ilcinc, nll)(,¢ieig that lllt'lC ~i1¢' il /II<IIlMIII<I ci~:ll~ (C('~ l,il CtCII (all (h~+(k ;111~ ilhlll//i;lfltilel "', fiIiiilifill O~ X~ll;il i~ hapl>enill~. PJ ,>,tsl~ Ii,>,# ]~ ,;¢1~l~ l#l),,I %P+ltI', I)ltJ¢llt('l /}~t f+I~]pt l,)i,')lpl]ll', l<)7I Iilf~ ~'i~[tt ttltJtpIJI¢. Iu~2.\',t , ]I+1~17(+ (]%1 IIORNI% IIlakt'~ (]lleMt, lllellt.c i1() 21i pZ'l it'ltl llt:l.'i'eat itll ( C[llt'l ~. 2 -)72,7 ~G. :13 iA (t, ..l¶l' c,()t) thi3Ai~l:l.:l:l:l cigarettes]. ~t%~ [I R~l''l IIILIk(~ {)]l~ (.~l]dM IIII 2~ [)('1 tCIll (t('(i-(ya'~t~ ttil-(('lltvh L~;'~7.2'}3¢i(i¢i -' "~7'"17 -- ,it "~ .,.< .{ ti~:llettesJ M,,. ~<--~U ,,~,,~,., ,'wi:~,,,;,. ~iG ...................................................... IClIL'~ olll~--twentx t(~ lilill~-Ii%e =-'7-1 11~~ ~'llL decrease tt.II(M lit) ICTI-iclllt:l'~ Gla.2=6.3<,t3 tlt.43t.6tll] {O'-,ll <- ci%~, e te~'~ ~()RIII (] *Kill.l> k )ll;t k(" S (~ tlliCt%. lu{ k t stl~ke*. (;tlexlci liv/d*. ,t few i S pc, tcrnt decrea~ q lthui M i1(i ion-centers 3o.47o-6-'9.(*)o t t. ( 8. i 55,1h~6 i!i-"'7e, t73,3 ; I ¢~gareftes) \ lt4(.lXlt nulke~ I.u(k~ qtlikc< ({iic~ Icliicltt~. Pit'dmcmts. Marlb,,i!).; t~l¢~ tew(enleI~: I1'lt1Tl:. Rt)I.L,Y ,lttI~ -)i l"'t tent de{:rea~c ;lilt{ P, I ['/, ]().\'Fig Ill -6S i;[2,L 66 ),q,7oiQl,~9,(~l]ti ! I.,,61. t t -'"") cigavettt~) K¥~.II I:K~ nlakt% ~OIll¢.' ()Ill Gold'i. Raleighs. Sptids; two leadinl ten- celller$: II'LVG5 alld TII'E.VTt" i l i [)t.1 (t.MI [~t r~.il~,/, C,R.4,VD °-'63'g.371,fil'~fi 3.61 t.9[)7,I}66 (2-!#53-ii2G-(J~) cigarettel) • 9° •
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NOTHING ROLLS LIKE A BALL New Departure Ball Bearings occupy a pre- eminent position In industry. This is true be- cause finest quality and engineering knowledge are combined in them to Insure a measurable certainty-af-performance under any require- ments of load or speed. They add to customer satisfaction by prolonging machine life. Thls should receive even more consideration than first cost by all manufacturers today. NEW DEPARTURE MFG. CO., BRISTOL, CONN. /~ 1 ~.~1"1 I i"~ "~ ~i.~.. ~.
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I FORTUNE - FEBRUARY 1933 La Corona • . . grandee of fine cigars, crosses the Delaware with George Washington Hill. Results: Corona Coronas three for a dollar, a 2,2oo per cent rise in Cuban Tobacco Co. stock, and 2,000 young lady cigar rollers in Trenton. P*biub~t PSo:o $~irt IN HAVANA. MEN • . . used to roll the s6t ~hape~ and sizes of the fa- mous La Corona cigars. They got from $16 to $~88 a thou*and and smoked from eight to twelve cig~r~ a day-which cost $t5,ooo a month or St.o~, per working day. They stopped work whene~er they felt like it. IN 193 l, in the old colonnaded palace of Don Migue[ de Aldama in Havana, were made iS,non,non of the world's most sought- after cigars, with nearly oiuety years of magic in their name, a small number indeed comparext to the yearly productiou of the preceding decade (39,0oo,0oo in t925). But of these only about 5,ooo,ooo were sold. Be- tween twelve and thirteen million rentained in the warehouses of the Cuban capital. In that fact and in the idea which it gave to Cuban Tobacco Co.'s (and American To- bacco's) George ~,V, Hill lies the germ of one of tile most radical changes in the history of fine-cigar ma::ufact uring: the transfer of the rolling of La Corona and its related brands from Ha','ana,Cuba,to Trenton, New Jersey, In .January, t932, this was the situation: La Corona cigars were being made in Ha- vana by a subsidiary of the American Tobacco Co. (American Tobacco controls American Cigar, American Cigar controls Cuban Tobacco Co., Cuban Tobacco con- ~rols Henry Clay and Bock& Co., which ~mcceeded the originators of La Corona, A.1- varez Lopez y Ca., and there you are.) La Coronas were at this time enjoying their greatest prestige as the smoke par excel- lance, but they were also enjoying their highest recorded price (sixty cents apiece for Corona size)¢ and, as a corollary, their lowest recorded sales. The cause of the high degree of prestige for La Corona brand was slxty-year-old Don Emilio Rivas, of whom more presently. The cause of the high price of La Corona cigars was largely the activity of the Federacion National de Tortedores o| Cuba, which had forced the wage* of cigar makers in Havana up to ~ t 6 per thou- sand cigars for the ordinary cigar maker and to {}188 per thousand for the expert mak- ing special brands• And the cigar maker, in addition to his wages, generally rolled for himself to smoke out of the same tobacco that went into the product he was turning out for the market eight to twelve cigars, a day--a provision which, during production in Havana, cost the Cuban manufacturing subsidiaries of Mr. Hill's great tobacco chain some $~5,ooo per nlouth. La Corona cigars were being produced entirely in Cuba, In this production were involved some t42 operations. In the last two operations, the rolling of the leaf and the exporting of the cigars to their chief market, the U.S., was centered the great bulk of production cost which had made it necessary to keep retail prices high and had kept consumption down. In 19~9 the net in- come of operating companies coutrolled bv Cuban Tobacco, after interest and taxes, was $558,335, in t93o S3t4,ot6, in 1931 $7.5J8, (1932 figures will show heavy loss), and iu common stock on the New York Curb Ex- *Cigars have two names, one the brand name and the other what is known ay the "front mark." which dedgnates the shape and size o] the cigar. It is called the Irons mark not because it comes first of the two names (which it doesn't) but because it ts atamped on the /rant of the box so that tt may be easily read when the boxes are stacked on shelveL Every fine cigar has many shapes and si~ to suit the tastes of peoples in v~arious parts ol the world. In the US. best known of ]root mark~ are: Covona~, Irapeviales, Invincibles, perfectos, Palrruu. Reales, Triangulare:, Puritanos, Epicures, Panatelas. Deti- ¢ioso$, Bre'ua, I, Rathschilds, Conchaa, Fava~tas. La Corona Coronas are cigars o~ La Corona brtlnd in the Corona size. There is ont~ one La Corona brand, but all line<igor makers o~rr a Coron= size. • 74 • IN TRENTON. GIRLS • . . in trim uni|orau, taught La Corona practlceX by Don Emilio Rivat and ,Master Cigarman .M~t Gold, roll the new La Corona. They get good roll the imported leaf, leave no waste, smoke 11o cigars. Net re*uh: greater production, a saving Ot at least $5 per thousand. change reached an all-time low of $ t. Of the retail cost of Havana-made l.a Coronas the cost of rolling per thousand accounted for $5.1, the cost of import into the U.S. and in- terval revenue tax oil their sale in tile U~. $127.9o, and the cost of the leaf about ,~87~ Mr. Hill saw an opportunit) ~o do some, thing. Exasperated by the cost and irregu- larity of Cuban labor, he figured that by transferring his rolling activities to the O.$; he could save on (a) labor by getting greater regularity of production and by eliminating the enormous number of cigars smoked by the workers, on (b) import duty by paving only a to per cent duty on the" cost o(the cured leaf instead of nearly too cent duty on the finished cigar, ann or* ,¢:) the inte~lal revenue tax (which ~ upon retail price), since the rednctior'a in labor and import duty would enable him to sell the cigars at a lower retail price. Mr. Hill was in favor of delivering &n e% "I" a • ,,-~.,
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Near Chicago: The lIKE many another boom-built dwelling, the $78o,ooo lnsull house is in many re- spects a somewhat conventional, somewhat ,Mnericanized emulation of this or that Old-World mansion. And like most such dwellings it is best characterized by, most interesting because of, the idiosyncrasies which its owner impressed upon it. Thus the English heart of Sam Insull demanded a fireplace in every bedroom and his Amer- ican mind required for most a bath-and a ne ~lus ultra bath at that. For the walls, ceilmgs, and most appurtenances in each are sheathed in either gold or silver leaf. And the Italian guest room is so masked in silver that the experienced Insull guest, finding himself there for the first time, in- stinctively glanced about for faucet and toothbrush, in the kitchen two stoves, one electric and one gas, proclaim Mr. Insull's impartiality between his onetime North Shore Gas and his onetime Public Service of Northern Illinois. The patio is roofed with glass which, by command of an electric button, quietly and rather disconcertingly disparts to let in the bare stars. And in his InsuU Manor House study Sam/mull. who always referred to his cockney beginnings with disarming candor, realized the best that has ever been charac- teristically, peculiarly English. The splen- did stone fireplace, the exquisitely carved walnut paneling and window frames, the frail and shimmering panes themselves he transplanted bodily from a pre-Elizabeshan manor. There are good U.S. Tudor rooms and there are bad, and Mr. Insull's soberly beautiful importation is among the better, Thus the house and thus (above) the pri- vate estate, probably to be sold as a unit. Besides these, the 4,~o° acres which are com- L~esed of twenty.two farms: the farm that longed to Joseph Cudahy, the farm that belonged to John K. Thompson, farms of the famous and [arms of the nameless. Col. lectively, Sam Insull called the score Haw- thorn Farm, and vainly hoped to organ. ize them into a feudal estate. Into which he poured $9,000,000 and which will most certainly sell as--twenty-two farms. Mean- while Insull's creditors listen to all offers. Pictures and descriptions o~ four other tares begin on page 9a.] • 73" BEHOLD FROM THE AIR •.. the 1¢~ acxes Samuel In~ttlt set aside for privacy. Kemarlt. especially, his t916 Italo.C, htcago palazzo, his glass root (whldl |olds up), his format gardens, hb many oterg, rt, t-t~ (which were an Insult fetish}. Adjacent to this is his 4,soo-acrc Hawthon~ Farm. MOST THAT GLIT'I'ERS (HER E) IS GOLD Iq T -I0 1 0350258
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,.2 , ultimatum to the Cubans. L Stuart Hous- ton, president of Cuban Tobacco, Albert H. Gregg, vice president (and president of American Cigar), tobaccomen both who had known Cuba ever since George Hill was a youngster, were a little worried at the prospect. They knew bow easily the Cuban tobacco workers could tie up the entire production of fine cigars. Hill, thinking of the great surplus stock dE Coronas in the Old Palace warehouse, was not worried. He resolved to go ahead and if he met with diffacuhies to move all his fine-cigar manu- facturing to the U.S. Houston conferred with the Union de Fabricantes de Tabaco y Cigarros." He found the other manufacturers who had no association with Mr. Hill's trust quite will- ing to co6perate in testing the power of the Federacion National de Torcedores (National Federation of Cigarmakers). In January, 1932, the Federacion was told that its members would have to accept a 12½ per cent wage cut, and a strict limita- tion of the number of cigars allowed a worker to eight per day. The war was on. The labor union was given to understand that any victory it might win would be a Pyrrhic victory for, unless the manufac- turers won. Mr. Hill would move his roll- ing at:tivnies out of Cuba for good, The Federacion Nacional answered this threat with a strike. For five months not a cigar was made in tins'aria. In May, at the instance of President Gerardo Machado, the manu- facturers agreed to compromise on a IO per cent wage cut. The Federacion refused to accept attd the strike went on. Tobacco workers, deprived of eveu their free cigars, lounged about on street corners smoking cheap cigarettes, confident that the manu- facturers would have to come to terms •They did not realize the stock of LaCoronas whlch Mr. Hill's Old Palace contained. In New York and Loudon silk-hatted smokers were getting their La Coronas as usual-from the stock of 13.°°°.°°° left over from 193 t. On June l, t932. the cigar city of Havana learned that it had lost most of its cigar factories. The workers, too late, accepted the lo per cent cut, hut all but two of the independent manufactur- ers lnoved away from Havana, feariug further trouble. The American Cigar Co., which had for many years man- ufactured its Antonio y Cleo- patra and Flor de Cuba cigars with Cuban labor in bonded factories in Tampa, Florida. bad already met with labor diffaeul- ties there and moved the roll- ing plant for those brands to Trenton, New Jersey, em- ploying women to do the work for which male Cubans "Union of Cigar and Cigarette Manu. factorer~. "Tabard'" or "puro" (slang) means cigar to a Cuban. AN OLD SPANISH CUSTOM • . . which has been tlightly modified in the fine new roll ng plant at Trenton, New Jer*ev, where in,odd,non La Corona cigan will be made "in 1933. In the old days (193t and earlier) the t,5oo rollers in the Havana La Corona plant were entertained as they worked by a reader, selected and paid for by themselves, who regaled them with the latest news, advemure storieJ, jokes, and general ¢om- menL The trouble was that the ~eneral comment ran too often to industrial radicalism, rWhen it did the workers were likely to put down their tobacro and stand around on street corners for a while indulging in the Latin-American equivalent ot a strike, coming back to work only to ask Ior (and ohen to get) higher wag~. GLrls in the Trenton plant will be entertained by piano playing only. THE PALACE OF DON MIGUEL DE ALDAMA • . . built in the ~85o'J, h~ since 188s housed the warehousing activities oF Henry Clay and ]~o¢.k l- Co., Ltd.. the subsidiary of American Tobac~ which makes La Corona tiers. It still does. The actual rolling, done until ~anuary, 1951t, ira other buildinga nearby, has now been transferred to the U.& had previously been considered ¢&sential. Now in this Trenton plant New Jersey girls, instructed in the art by Veteran Cigar- man Albert Gold (forty years in the busi- ne~ and manager of the Henry Clay and Bock plant) began pracdclng on La Co- ronas, using the identical Vueha Abajo tobacco which had once been familiar to the fingers of the temperamental Cuban Ioree- dores of Havana's Federation Nacional. In three months 2oo apprentice girls had made a million cigars, some good, some bad, some indifferent. These practice Coronas were packed into boxes and sold anony- mously at fifty cents per hundred. Mr. Gold from his sunny desk in Trenton then an. nounced that he was ready to produce La Corona for the trade. On September iS, t931, the first shipment of American-rolled La Coronas left the Trenton plant. George Washington Hill and his lieutenants were ready for their campaign, which resounded in the advertising sections of the press. Iu theme: La Corona Coronas can now be bought at three for St and are actually of better quality and workmanship than Havana-rolled cigars. BUT life is not quite so simple as that. In these advertisements for the first time appeared a new seal bearing the insignia of La Corona and a new name, International Cigar Brands. There is a reason for the name. The tobacco society which recog- nized the Havana cigar as grandee i.~ very snobbish and divides all cigars into but four classes: (t) the nickel cigar, machinemade, (2) the high-grade domestic cigar, machine- or handmade, (3) tile clear Havana. hand- made in the U.S. but of Cuban tobacco, (4) the imported (i.e., real Havana) high-grade, handmade cigar. Obviously La Corona can no longer be called an imported cigar. What, then, keeps it from falli~g lxack into Class 3? Mr. Hill's able lieutenant, Cuban Tobacco's Vice Presi- dent Gregg, coined the name In- ternational Cigar Brands, a finesse intended to classify this new kind og fine-cigar produc- tion. However classified, and what- ever finesse may be used to color the facts, the New Jersey La Corona is iu the same class-- except for one factor--with arty other good cigar made in the U.S. of tobacco imported from Cuba. That one factor is the famous District No. I Vuelta Abajo tobacco, which is now and always has been used in the manufacture of La Corona brand. But in spite of this La Corona is no longer a Havana- rolled cigar, and Mr. Hill mug put on a very good show indeed to compensate for this fact. Whatever Mr. Hill must do Henry Clay and Book g: Co. by :!!!i~ 'i ~d • t /ii : [ ! i • 75" 0350259
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~ 4 MR. JACOB VOICE MAKES 75 PE~. cENT OF ALL U.S. CIGAK BANDS ~$EE OPPOSITE pAGE) • 76. ~T,'~O'~ 0350",260
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moving to the Trenton plant already has: L Cut the price of what have long been considered the finest cigars available for American smokers nearly 5o per cent by: a. Importing the cured to- bacco in leaf instead of in cigars. b. Lowering the cost of production by changing from piece-work pay in Havana to time.work in Trenton, and by substituting girls who don't smoke even one cigar a day for men who used to smoke as many as twelve. (Ten cigars a day smoked in Havana by 1,5oo members of the Federacion for 3oo working days amount to 4,5oo,ooo cigars, a consumption adding more than a quarter of a million dollar* to the manufac- turing costs.) c. Consolidating the rolling activities of several companies under one management and one roof planned with the utmost regard for econ- omy. Here is the account of the various items of production cost as of Havana and of Trenton, showing clearly wherein lies the gating resulting from Mr. Hill's dramatic THESE CUBAN MUCHACHdS •.. are ,tt-m~ m the Havana warehouse the Vuelta Abajo leal which go~ into La Corona cigart. ~ for tl'm wrapper it stemmed in Trenton. move (the figures here given are all based upon La Corona Corona size cigar): Havana Trenton Wholesale prlet per thousand ..... $176 $z4o Retail price (Corona size) ........ 600 33~ L~bor .......................... 54 49 ~t~l ....................... 87 95 Prep. of lelt. faaor,/txpcrtse, etc.. 68 3o Duty and taxes .................. la7.9o 35 s. Mr. Hill has bettered the chance of increased sales for La Corona by removing the burden of importation from the dis- tributor, giving him the benefit of carefully planned advertising, and taking steps to protect the retailer against the ravages of price cutting. When Coronas were imported, although they were sold at retail at a fixed price, the duty was paid by the importing distributor according to weight. In one year, due to changes in the texture and mois- ture content of a crop, a thou- sand cigars might weigh more than in another year. This tluc- tuation in 19z9 caused one dis- tributor to pay excess duty of $5o,ooo, an added cost whicb he could not pass on to the consum- er, Now the distributor receives his, La Coronas from Trenton with all taxes paid, the revenue st.am~ affixed, at a fixed price. In order to protect retailers and distrihu- tops from price cutting, La Coronas are sold under a novel plan developed by Faber, Coe g: Gregg, their largest distributors. (Albert Hayes Gregg of Mr. Hill's American Cigar [Continued on page zog] CERTAIN VITAL STATISTICS Among the cigars whose bands are repro- duced opposite, White Owl, originally known merely asOwl brand is now the quantity lead- er at five cents (tgSz sales. 41o,¢x~J,o¢~). Its owners decided to call it White Owl in an etturt to iazz it up when ¢igax tales had started to fail o/L It b~long* to General Cigar Co,, world's largest cigar company. Robt. Burns was called Robt. Bums not be- cause Robert was a smoker hut because his name was well known and because the word "burns" seemed to go well with a cigar. Blackstone and John Ruskin illmtrate ~ell the '..Glue of a good name eveml though smokers have no idea who the owner of it was. Rlaekstone is named for the celebrated British justice, l)¢aler~ have been overheard telling customers that John Ruskin was the fellow who insented e~olutlon. But John Ruskin cigar sold 68,ooo.ooo in 193~. Hambone. Yellow Cab, Keep Moving and, of all thing*, Call Again :tee example~ of the kited of name chosen tO c,3t~h the car of the smoker ot inexpensive tigar~--nlore easily caught by soond than by quality. Pew people know that La Palina is a word corned from the name Paley Sam Pa ey, father of ~,Srilliam S. Paley, president of Ca> lumbia Broadcasting, ori~nated the brand. A picture of Mrs. Sam Paley in Spanlsh cos- tume adorns the inside of all I.,.1 Paling boxes (,93z sales, 7o.ooo.o~o). El Produeto. fifth selling cigar for t95~ (about too.ooo.ooo), is a name coined by Mr. Voice of the Consolidated Lithographing Corp.. which printed the~ bandL The impe- tu~ given by this name enabled the G. H. P. Cigar Co. to build up tales for whith the Con~lidated Cigar Corp. paid Stl.o~m,oco. The La Corona band (center) h printed in Cuba. All others by Consolidated Lithograph- ing Corp. Cigar GEORGE BERNARD SHAW asked his American lawyer a couple of years ago to get him a complete set of American cigar bands. Years ago boys and ladies-the latter used them for making decorative ash trays-- were enthusiastic cigar-band gatherers. But today only people like Mr. Shaw, Rex Bea¢.h, and a few others are interested. Any- way collecting isn't an important factor in the cigar-band-making bnstn" ess. Which bus- loess is largely the Consolidated Litho- graphing Corl~. of Brooklyn, New York, which in turn is largely Mr. Jacob A. Voice. About five billion cigars were made in the U,S. last )'ear. Two per cent used no bands. Bands for another billion were made by companies other than Consolidated. But on about four billion cigars went labels printed by Consolidated--more than 75 per cent of the total. Consolidated makes 6.5oo different kinds of bands, Here are some figures, heretofore unpub- Iished, on Consolidated's biggest customers, an index of cigar production: Number o[ bands in millions Cigar (tgjt) (r93~) White Owl 52o 4so Cremo 404 345 ~,Vm. Penn 275 l l t El Producto t6o 88 San Felice t 2o 7 x Robt. Burns z ~ 6 1 ~'~' La Palina t t5 70 Since bands for some of the above are also made by other companies these figures do Bands not actually represent total production of the brands in question. For the first nine months of ~93z Consoli- dated's gross income was $64e,ooo. its gross profit $_~43,ooo. (The income does not come entirely from cigar bands, however. Consolidated does other lithographing work and it owm International Banding Ma- chine Co., whose cigar-banding machines are used by every large U. S. cigar maker.) For five-cent cigars like Cremo and IVhite Owl the bands cost just under twenty cents per thousand. For the more expensive cigars like Muriels (ten cents) the bands cost forty- fi~e cents per thousand. The really costly practice of having special bands made up for t,'eddinws with pictures of the bride and groom encircling the heavy, perfecto, has ccnnplctely died ont. No call at all now for special designs. Band styles change very lit- tle. The trend is toward simplicity. Consolidated, it was noted above, is largely Mr. Jacob Voice. Mr. Voice, presi- dent and chief owner of Consolidated. was born in Rumania in ~885, came to the U.$. four years later. When he turned eight- een, while a i'mokkeeper in the litho- graphing plant of William Steiner Co., he married on the strength of a $5 raise to $t8 a week. Four years later be left Steiner to form his own lithographing plant. By ~976 he merged his company with tile Steiners'; in 193t bought out the Steiner interests. Mr. Voice is modest, hard-working, pleasant, sincere, and active in settlement work. • 77 • K.~ "1" qls"~ ,,t
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Machines for Living • . . the phrase and the ideal of functionalist architects, and a problem yet unsolved by manufacturers, who alone can make machines. Architects, ahead of the machine, apply functionalism to minimum housing and the result is seen in Frankfort, Berlin, Rotterdam ... •0 By L~wis Mumlord IN ALL the talk about modern architec- ture in America during the last five years one word has kept on recurrlng-"funcrion- Dr. P~ v~l FIL~.NKFORT'S LAUNDRY alism." It is one of those catchwords that mean all things to all men. The conserva- tive architect uses it with a jeer to describe the practice of leaving the plumbing ex- posed or showing the ribs of a building on the outside. Another school uses it to char- acterize the method of designing solely in terms of the maximum rentable floor area. To a third, functionalism means the largest possible use of mechanical utilities-win- dowless walls, conditioned air, artificial sunlight. To the layman, functional archi- tecture perhal~ means any kind of unorna- mented building that looks a little queer and that cannot be easily identified in treatment with the palaces and temples of past ages. These notions o[ functionalism range from caricature to downright contradiction. Ar rot: Functionalism and the spirit in Cologne. The building in the center is a church-strange o~ntrast to Cologne's lacy, vail-towered Cathed.'~L Ar rrm hints: Functionalism and the body in Frankfort. The community laundry il modern. cient, convenient. Equipment lot the famous Frankfort kitchen is stand~txlil~l, deslped for maximum utility, and mass produced Jo that it sells for less than $56. • 78 • Meanwhile functionalism as a guiding prin- ciple has taken hold of the design of a great- er part of the new housing in Europe~ ao.d it is in the minimum house (for the towe~t FIL~.N K FO KT'S KITCHEN f-?l-;,~O "1 0350262
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Co. is the (;|e~g of thnt tlmtbination.) Un- dcr the I-abet, (k;e ,~ Gicgg plan, generally IoJloucd by alt La Corona distributors, the retail agent does not actually get cigars at a ~dlolesale price. ! ie signs all agreemetll with the distributors to handle and display a cer taitt nllttlber of sizes o[ La Colona. The dis- tributor sttpl)lics tile cigars, tile agent sells them and, remits the full retail price to tile distl ibm.l-. The distributor then returns to the agellt a percenlage tff the ;lltlOtlllt O[ sales as the agent's ¢OltlnliMitHl Oil such sales. This pert:enrage is ~-t lot" agents agreeing to display six diitetent sizes of l.a Corona and o,_, for those a~eeing to display only three. iThere are '-'6'-' sizes aim shapes.) ()llxiouslv under this plan it would be dillicult for an a~eltt to sell l.a Corona cigars at Clll rates. And the distributors select as retail agents thtlse nnlikely to cut p~ices. ~ll'. }lill, hot, tier, still has ntany difficul- tit's t,I (t~llleltll ;~ith It is true that l.a ('.t~- roIta is a lI:tllte that ;tllv (i~;Ir lllallll[aCttlrZW La Corona [Coulinued [rom page 77] would give his eyeteeeh for, and one which, it ntight be supl~osed, could stand such a thitlg as transplantation irronl its island holBe. But the COtlllOiss¢_,tll. the chlbnl;lll, tile man who has stlloked Im Corona for ~tn. rs goes about shrugging his shoulders wondering what, in cigars rolled in Trenton in the fall of 1932 and sntokcd by hinl at Christnlas, 1932, WaS supt~setl to ha',e t;Ikell tile place of that aging which he has ahsa~s beliesed to be required not only fi)r the leitl but for the tinished cigar. Tile nlan who is neser without a La Oorona ill his nlottth may not readily accept the persuasive state meats of Mr. Hill's advertising. It is one thing to say that l.a C,)rl)na is just ;is R~×M OI I)CIIt'F thall t'ter ;llld ;tllother tl) tll:lkL~ lilt' seasoned Sl~lOkci at( ept tile statenlellt Ill tile extent of justifying a tn~thl~tion ([or t(133; Of t]llec Ill ft]ttr times the t(!3t prt~tuction. Mr. l l ill expeits to r~lll ;it least that in his new "I']entun plant this year. Back ill ltavana cigannen (not entirely disinterested it is true) art: saying that e~elt with snch caleful, foresighted haodling as has been planned for l£t Corona tile tealing up by the tcrot~ o.r the llatana cigar industry will never work. They gixe these reasons: I. Tobacco Intlst SliCer fronl its saIl- water journey to Trenton. 2. ,~,'O one bill a (~tlllall I;111 nlake a hand-roiled ~igar fit tol a ¢onn.issenr to SlllOke. 3. Pet~ple wozt't differentiate Iletween a "'l |al.alla"" cigar tnade in Trenton and the many cigars which (in the same price range as the new Corona) have been made of tl;l~ aria tol)at t o in tile I.!.S. for )ears. Tltere- f.re 1~, (~ollllla, illt+etillg domestic I'Ollltle- [Conti. ued ou page r ¢,,] x MR. tIIlAfS BO.kS-I': 99 PER CENT OF FilE PREPARATION OF 1-% COl(ON\ CIG \R's bHl.l. TAKES I'I. XCE IN CI'I',\ It take* irt)nl three to four years to make LI t;orona cigars, of i~hith little show tile plantin~ and cuiti~atiort o[ tile setxllink, x ol tile fine toha~co ~r,,un less th;tn a motlth i*, spent in file U.S. ~.! the nt'w Trenton rotlitlg plant of specially for 12LCorona in tile ~,t,t'~- small District No. l of the famous Vut:lta Hear',' Cla~ and t~k & Co. tile receiving of the t~d~acco and the preparation .M~ajo. in Pinar del Rio province Cul>a; the setting ,mr ,If ',¢mn~ ptant~ and of tile filh:r takes nine days. tile preparation of the wrapper ;ittd the roiling their development--the filler kgll in tile ,,un and tile x~rapper leaf (tt~ make it one day, the ¢onditioninlg prior to pat:king about I~, weeks, tile selecting, lighter in color) under ichee~etloth ~h;nle: tile dr~,ing o{ the leaf ill tile harn~ lal~,ling, packing, and ~hipping about four da~s more. l'Chat happens during and the hulking, fermentation, and curin~ of the tobacto preparatory, to it~ tile rest of the time i$ shown in a ~.rie~ of miniature landscapes wfiirh greet being tied up in bales and sent to the ',~,'arehouse for curing. All takes place in the tlsitor to tile Trenton platlt as he enters the reception hall. These {aho~cl Cuba, j',lst as it did before the rolling was transferred to New Jer-ey. • IO9 • R l,'.,fO 1 03 5026 3
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dtlo,I o'.er ~dlith it p~e~iously had a,I adxantage, will fall ott ill sales. To this Mr. tlill's ans~,er, as easils [ore- t~dd. is: 1. The same tobacco ill tile form of t igars has to nulke the salt-watet trip any l~ay. 2. Tlenton girls can nlake cigars better and cleaucr and nlore nlpidly than Cuban l.~.lbH's• They Call because they are doing so today. 3. Profile will differenliate between la Colona and other L'.S.-made cigars hec ause: a. Out of 142 operations inxolted ill tile plodllctiOII ot I~;I ())lOll,l, OII]V one, the rolling, is performed in the U. Si ¢Mr. tlill makes a great point of this.) The remaining are still peH'ornted as they ah~ays were in (]tttxl and by the same Cubans who have alwa}s performed them. b. The tobacco which gt~es into [~l Co- rolla conies ~l-oln that 'kerv small District No. I of the falnous Vueha Abajo in Pmar del Rio prostate, Cuba. which is largely owned by the ploducers of La Corona• No tobacco froln ally ottler district makes such lille cigals. No other COlllpallV Call get enougJl of it to put O+ll cigars in appreciable quantity. c. Because Don Emilio Rixas, white- h: ired j ~x I c ~,ar aa i if nearly rifts' years' experience. ~ith the corps of deparunent supcrilltelldents he bronRht with him flOnl Cuba. is the superxisin~ direetOl tff [.a (~tllCllta ptodllcliIH1 ill Trelltoll jll~t ;is he ~xas tor twenty ~ears ill tlaLula. Don LR COI'OFIa [Colm'm.,d j.)m p.ge 1o9] Emilio it ~as who l~olked with tile blend- ingof l.a Coltma (b~t i.othued i. J~51 alld Illatlc it ht the Call} l(IOo's tile wolld's leading title cigar, a distinction signal0ed first by tile Cart that England's Edwald VII, that pertinacious epicure, chose it for his persona[ smoke. IT 1S hard to tell what perutaneltt reso[t the transference of lm Coruna's rollin~ acti~ tries to Trenton has had. It was effect ed in Septentber, and prc~hlctiotl amt sales began to go up almost inunediately. But 60 per cent of all fine-cigar sales are ahv;lyS t'onc'etttrated ill the last three ITIOlltlIS of tile year. And figures are carefldly guarded. Nor is there any certain indication of what has happenelt to the residue of tile thirteen mil- lion tlavana-rolled La Cxlronas which Hen- ry Clay and th~k & Co. had on hand at Ihe begimling of 193z. As only 5.ooo.ooo La Corollas were sold ill t93t, consoHlptioIl woldd flare had to more than double in order to use up these cigars e~,en withotlt any production ill TrelltOll dltring tile |a~¢ few momhs o[ die year. It would be intelest- ing to know whether the ltlailll[aCttlrers ,'Ire distributing these Cuban-rolled with their Ameriean¢olled or are reserving thenl for the more epicurean elements of their market |x~tll here and in Great Britain. WI IEN (;eoRge Washingtou Hill goes in for stltUCthil~g he ~llt-s the I~hote hog, No half-way lncanules, t le realized that in mm ing Ilk l.,l Uorona rolling to Treuton he would ill order to maintain tile tradltiou ol his No. [ bland have to ha~c sonlethiug IIllic]lIc ill the lva~ of a plant t h. ~-I it. -Ib.e IICW f.a (:~lllll/,I Lmttny--of "rollilt~ plant'~ as it should be called-is unlike any other cigar [actolv in tile worhl. 'Widfin ttle $5oo,ooo. ti'le-roofed, stucco, U-shapt~L tropical-looking building it was neCt~mry to reprodttce the atlllosplleric Collditi0tts found within the ~xaIIs oi the ohl .Mdanla Palate ill llavana ~]mie flora I~2 to t93~ l~a Corona, tile cigar of kings, was rolled. This leas dtme by iIleallS of all elaborate air* conditioning systenl, devised by engineers and architects. Fr:tncisc..~ Jacobus. Here. with file windows closell, i. the moist fragrance of an imitation Caribbean ~h', .~.{~)tl carcfully taught Tremon girls to0. l.a Corona ci~us. ~,ooo with the left hattd and t,ooo with the right the wlapper teat beillg split ill tlto, Olle-hit][ haxing to rolled in tile opposite dilectMu httta the other. In spite ot. or perhaps because Of' tl~e fact that .~Ir. Hill onto su4~4ested that ~d! hallduladc cigars well lmheahhy heeaH~e O~ tile intimate way in whkql their wr~p~ I,.Cle put tugelher ",~ith lll¢)le IlatllTt'tl a,~- hesixes than paste it is xegetable uast~ ~at is t~sed ill Trentult. F.ach girl is given a cart[ showing tI~e exact llLIlllt)el" O[ illlnfe% Of tile ~ ali(tlls t~.'][~e~ of leaf making tip the (k~loua h!eod-d~c nlagic formula ul I)on t'miliu Rixas--whlch are lequJred ill I}lc! lnakhvz 'ul t00 Cig;tl~. Thlcc times a da% she takes her cigar's to the hneman ~eigher ithme i~ one foresight Iol exely lofty IoIlels) and has diem weighed tot actllral ~,. The ciu.als iu buit- dk's td lib3 t;itcl} xats i. ~¢ight by the h'action of act ounce• Dulin,.~ the rollillg~ ~ei~hillg. and inspecting, horn a plat[Ill'ill laiscd aboxe c;lch tff tt~e ~<z'eat surely r0ltiiig th~s, come the ~trains of a piaIlo played to entt'ltain the gills .it d~ch- ~otk. "t'[le cahn. illg elelllCllt of nltlhiC is substituted for the Ill(lie dallgell)ll$ olle Of ptiblic readln~ to ~JlJ~]l } la~,;llla £ J~;lr lll;)kt'~ s ;lie acc~lstOtl~let[~ and into ~ddt:h the (]ub:m 1 t';hlels, hired b'. the ~lllkt.r~ lhelnsct~t's. ~dlc.n injected coln~ IIICllI OIl till{ ~ 1]ti( i~tll ,,1 ],i[)~!l (li!~l[ii.]()lts, In l'renr,m lhc mu.h is ~.pp ed by t.h¢ axo{l( SLit ]1 f]iial2.s as ('l~pilt -, Rt'trO~ltt~i)~i- ¢11', [:,qtt[~ , i', IlOt likely t~ tallSe nltlch =~ill- :c'st, \lid it IS \CIX pitttllt~tlltC, \\hell hi Ihtr ~Ot|lld ~)t" music the ¢i~at's ale ti/fiq.,d, they ~.) quicth t,~ ;i cedar'-lined t,mdili,,ni~ ~.:ml. d~ere to remain a¢ a tenlpc,atm c ~,1 horn 6,) to ti3:..-lit the t'~ttl. td the ~ol'tl~i2}]t tll¢"," ;Ire p;lsse~{ o',el" ~]te st.lcttiu~ tabius, assorted h~r colot'i ~;~d p;ukcd ti'.'htl~ into ~edar crass each i~ v, imh iollIilill~ tile s:nI:e tlllllltlCl Of C[~IlI£ ax i~lit." I.lxcr Ill a stalld;ud-sized box. Fr~)lll HIc.e It.l~ lilt'; ale bal/ded altd c'~ll~l~ll:'];!~' h.cd imo dlc boxes which calvy th¢~ i~to lhe desk fllal',ers of kin~s, t'fCOOll~. ~ttt1| .lilcl ]d:,incI ])ltt ttnn|t)r~at)le folk who iust 5iHlp[~. [/;l\ C a tame lilt" good HaValla cigars. 4. R1",'qO "I035028,i
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,~ :~ ~ REIDSVILLE, NORTH CAROLINA : ........ ? - ,~,z "1 _ _ fl'f ,,C "; 035026~.
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metiern-filter plant el'Spray to supply~ ¢~r~n~incJ watt'to ~e Draper villoge and industrial water to the Spray m~Is. A cjenere| pra~ram of modernizing the fecillties of other plents ~ove entailed sizeable expenditures, edd~tlons being bu ff to the Draper shee~incj in~ll, Spray blead~m~/en~l ~e, doteo~,, warehouse, and to the hosiery mill at Fieldole..'[he company s annual I~.yroTl.,e.m°unts. T° .... $4.000,CX)0, and in ~e 18st" decode It h~s ~T~ faxes,lr~.o _[n~s cl~s~lf~urs_ • • ~L- --xtent of about $ 000 UtOU I~'S a,sDursemems nn t-,or ...... - ,reaS, ury TO~O _~ ......... ed to mu~c~lled n~ ~ons ~,ome ic~ea o[ th ..... • rig T?~&T Tlrna ~la~ orn,vu,,, r p~ny's expensive operations is to be gleaned from the fact the! its mills end warehouse; cover a floor space of over fifty ecre~, ff is a maff~r of interest to scrutinize the long list of productS manufactured by its different plants. ^t F~.ld~le, v~., tk. com- ~nnv k~s a plonf. ~ch it t~r.s 14uck end Torr~.towel~ s cot LUT14ER 14, HOOGE5 ." G®ner~t Men~sgee of M~nufec~r-" ;n~j Oi=i~ion of I~11 Re|d & Company. 0350267
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"T~e ~t F~iend of Ckerleston" and lh Treln Rep~ ducKl by the Soutke~e Re;k~ev System. Vv'~ich ~e~ R.ids~iHe; Fi~t OpereT~ ~. 1810 The ~thern Ra;k.ey Sychlm's Femous Train of Today. No. 37. Operet;n9 Between Ne~ Y~ end Nm. Ort~eM Th~gk Re;d~Ue. - I ° i
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L~ 4 iq 1-,'~0 I 03 502,.t-" '~
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IS "IT'S TOASTED"... Hoet °.d ultra-violet ray~ ere the next Item+eat received by tobacco on ;h w~y through Phe cig~reflo manufecbaflnq plani'l. The fob+coo pa~ through huqe ~ens, *here each leaf ;s ~ubiected to • high deqree of hee~ in the pr~e~ known es "1|'1, Toasted.'" ~++ich removes cerl~in he~h ;rrltenh found in e]t tob0cc~ven in Phe ~nesf grades. The u;tre-wolel ~qu~pmea~" u+.ed by fhe American To~ecco Co~¢+ny h~s b~e~ ++~led Ihe largest commerc;oi insteJht;on i~ tm+ world. ROLLING. - . After th° tobacco ;+ ,bradded. it ,. fed i~to +me ro~h~j ~;~+ which place fhe t~becco in • long roll of imported c;gaPe~e paper+ 141~hld ~41- long ~hite tube• end t~en cut to ~e proper length. The mach;~es ¢o pe,~'~l~m o~erelian are almost human, Any cigarette that ~s no* g~.fec~ly r~nd na~ ~,Po~y ~acted, or has any othe~ slight defect, is cast as,de. ~e o~e~t~r ~.e~r~+~ a~ • eagle eve+' for imperFecflons. ~lera we ~ae clgareffes omerqlng from ~'ho r~l~J machla~ ~aav to be put into ~he ~ackeg,nq me~t,;ne PACKAGING... Here t~eafy ciga~et1~ ere dealt ou! by 11"+is packaging mech,° effe~ being o~mined bv t~,ea~y .lectrlc finqer~ for im;~e~ecfions '. size. we~9~l. ~.1~ They ar~ fi~t wrapped in p~per, next in tlnfo~ ~n enclo+e~ ;~ ~e ~ra~or. the Re~m~ Stamp ;1 affixed, and Ihe entire p~c~age e~closed - ~e,~phane. h Im~e~' ~-'<mttol of the ~mper°~ end ham;d;~/ o+" the p~nt. On dcv de~ the e~r is hum;difi~l "~ . to luppIy ~ proper amount ~ me;slur° to the tobe¢¢o el ;t g~l ~eo~l~ the manufe~r;~J -+_+~..'~+~Om damp dry+ hsm p~ ia tamed to ~u+ the ~fopaz mo+~'m+,e coatrot, ell+re is -2~Jl~ly ;mr,*tint:toe, make ~lnl that. wh~" +F.e smck°¢ rece;w, fke d<l+Pafl~l, tl~y are never • ~ ~- .... ~ +o.:~ .,~ .~., ~..+It. ++ , : +/~:~. L++ ++ ":-:+,- T ,'KO "l 03 502 P l
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+: . • + RockJn, . R.]- ,.',,' n, ... 1 03~02 72
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? f-'31"],~0 '103S02 ,-'.-':~
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_J Tl~e H;qk Po;at PIW Ik~ C¢~ Ira:. m*nu{och;rstt 'of tot,up stud fold;n9 t~o~et. of ~h;ck it i. one of t~* country's I~rq~t producers, h~d ih o~;~ ~ Re;~s- c;ty, un~r tl~ nam~ of It~ Re~chv~lt* P~l~r Box Co~ ~c. TE* company ~t openld • br~ncJ~ pla~t ~ Hig)t Po;nt. N. C. in 19t4, bet i~ t921, in o~der *.o ~**t * mo~e cent~l Io¢~fio~ to the to,ill* ~*dust~, the e~fire pl0nt wM ~r~ns- +~d to H;qk Po;nt, wker~ it cont;nued ~'~ operate under +h oHg;n.I name unf~l 1927, when it w~s £~nge,~l to its pr~tQnt heine+ W1 H+ F~y, founder of fhe l~lerpr;sQ, ~s WI1,;~Inl o~ 1~+ concern ~r~m 1921 ~ t927, ~he~ h~ re- t;red ~rom active ~meQe~nt o( the ~u~;~ess. The plant is no~ under the Memmoth ~onf of tb0 H;q~ Point Paper ~os Company. m~nagement o~ V~. GraHo~ Foy. prelldent: I. Paul Ingi*. vice-pres~dent: ~V;I- ]i~m H. Foy. ~rQe~ur~r, ~nd Jo~,n C* Foy. tecr*t~ry ~d ~s;stlnt tre~*uror. Tk* pl0nt h~ ~ product;c~ c6~c~ty o~" 200.00~ b~es • dey a~i e~l~y~ IS0 peo;;Io. It ~ort*t~ ~t~ p~o~.K~ throughout ~o 5outk. Th* pl~t bu;td;~;s cover thrle 0cr~s of ground s~c*. The *Ider )Jr. ~:oy was rec.nd~- ~rded tee 1938 "Acb~*ve~ent C~;>" ~ic~ ;~ given *way *6oh y.~r by C. R~ *~ V,';Ili~n~ M. Olivtr, son~ ~( t~e I~tlR Oli~¢r, to ~. Re;dlY~le ¢~:~n (or the mo~t ouhtandi~q lervlct re~d~r~ during the y*~r to ~;~ co~Py The :electlon is mad* by th* ~xec~t;~ One of ~* C~mpany's printing ROOm£. T,RO ! 03SOP
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+ • ++. + .=~ Tl~e ".~lk*rson F~neral ~oe~e, of il,~ds-~fl*, kaY, pravldec[ for Ro~ing~m C~nty for fl~ ~t heenty-ni~* y*a~ a f~n*r~l semite comp~t*b]* 1~ t1~ bes! in the South. "[1~ b*aufifully-sppo~ted I~en*. ~ ~t~ commodious chapel *rid r*c*pficm roomL to¢*tbee ~ith • hi91~ly'traln*d I~r- so, nil. th* v*ry best in .q~pm~z! mn~ eo;lln9 sfo~k, 9~* th,i est~bl~skmant a reco~nlz*d iasd~iduallt~ e~cl distinction wbich havl ~rked its lon~ se*~c~ to tt,* city ~ncl county. Thj ~+in~ss ~as ,t~6E4ished by Vr'_ H. Wil~*rso,, ~ho Kat been in ~ m~ua~ ba.~nesS foe thlrty-n~n* years, being ~ere t~enf')' n~n+ ye~ ego+ ~l~,c[e+~ wuth h~m ~re +s t~o ~m+* ~*nry P. ~nd Robed R. ~tV+lkemon, +nd k4. U. Ro~, C+ L. Defies and 1,4 W. A~len+ It+ sl~ff i~¢lude+ t~ree lh ensed em~lmers ~nd fhe~ +p~renhces. end ~ts fi~e new i.~u~pme~t +s m,~de u~ of theee keerses +ha I~ +mbul*~e. Wilkerson Funeral Home and ~utornotlve Equ+pmenf T:KO7 03502 P~
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1",'.~0'1 03502 76
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R]",'K01 03502 ?2
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, -:" • MADISON A'BUSINESS CENTER FOR BOTH INDUSTRY AND AGRICULTURE F Idediso~ i~ about 24 mffes from Re;dsv;~, sttueted m ~ ~ ~ the $eureton Range of the Blue Ridge Mc~ntei~, ~nd edv~ ~ a~ the biggest little city in the ~ro~ld. With ~ts papu[afi~ of 3,000. M~li~ t~n~s out es the we~lt~ie~f tow~ per capita in North C~roh~l. ~ , T~erl ere s~vlm mdustT;41 m the kaed,~on, M~vodan ~nd S1~ ~d~'lf Im~ the peo~luctt manufactured include: he,ethel, ic~ ~~ me~'~ beH~.'.~rm b~nds, rn~n's hendEercbi~, u~d~,:~mim~ ~'~i~J ~H! and novo)~y cushlons. .- ~i~=i~ M~di~n is • well-k~t tow~itk beeutlfu| homes ond c~n~l~Nl~ i~I~I. It was i~corporeted in 1873. Its natural resources /~ ~¢~d~t~.M~ i~ ~11 a rick acjdc~lturel section. . :=~_ Meyoden is 24 miles from Reidsville. It ~es fcuan~ed ~ |~S ~1~ ~ll~l~ |~ 1903. T~e Wed~incjton kaHI Company h the p~dom~neni ~ ¢~ the town end is the [~r~est ente~prlse of [1~ Lind |n t~ne UR]ted ~tt~tell, 11~0 Mayo River ~rn~shes watee ~wer end the h~vn ~s Also i,a~ ~y th~$ str~m, the Wesh;nqton Mills Comoanv having recently instated i m~dem filter;n~ ~lant There arm s~ churches n the town. a number Of ee~4,e¢l~ 14tebl~thmenfs ~na representative individual indufld~! p!e~. Stoneville i~ 20 ~niles from Reldsv,Ile. It i~ • pmspem~ t~alaacc~ I~lrl~et ena the home of a large wood-worki~g ~lanf. ~ hot many ~ee~t[[ul h~mla. several mercantile ettaDhshment~, and ;f ~s p~lmted by ~ ~ the ~nel~ people in the woma Main Business District of Mad;son. ........R T ~0!
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I LEAKSVILLE THE BUSINESS IvlETROEO[!S:OF ROgKINGHAM COUNTY'S V~
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Economis~ and publicists from other sections who have visited Piedmont Carolinas agree with home folk that the power development of the Duke Power Company, which has made electriclty ~wiloble in this section ~t low rates for more than a third of a century, h~s been the determining factor in the .!ndustriol de- velopment~which Piedmont Carolinas has en- ioyed during the past three decades. The industrial development in Piedmont Caro- lin~s with its huge pay roils has literally trans- formed this area wi~hin a third of-a century, making it one of the best bal~nced and most prosperous areas in America. r~qhL i~ ~ e~a m ~.~ The Du~e Po*er Compeny as a chatter of insurance mc~a;~st ;^~*rF~p~;~ ¢~, ~¢e to ;t~ customers on eccou~t of aay em~rqe~c~ ~at mlq~+ e~ec~ ~c,~ ~ ~;~9- hal on h6nd at its varlou~ ite~m,olec~;¢ pl~n~ ~ rele~o of 366 CO0 t~e~ of e,~|. Th~ pich~re pre~entld horlwith sho~ onl coreer o~ th~ c~t res~e~,~ ~! ~ It~t~,d S~'lem Ptant--lg4rO00 toni. R1,'.',¢01 0350280
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The a~tfion**~ calls i'Hention to * cl~alca b~u of toblcco ia * K*a¢~¢ky war*hou$*, All photographs illulffttlag tbi~ 6r¢;c1. furaith*d tSroogh ~ha ~Qu~*s~r of Th* Am*rican Tobacco Compa~. on the Chesapeake and Ohio by J. H. KELLY Ti )B.\CL'~ ) : "Fk.,,,tqir, g t)lam. of lhe nightshade (amily." says \Vebster: l"Nic~tiana tnat. ord. sola- ilaceoe)," say other~ . , . and v,'hell tobacco was thought to have h'ealiu~ powers and n~edi~.-M qualifies, it was dubbt:d "herba panacea." "hr.'l-ha si111t&'" or "~qdl& ~ncta [lldflri~.ll~lf" BUT . . . Io Ye~port News and The (hesapcakt. aml ( Ihi. Raih~av C~m> party . . . tme ~d the maj,,r prodllcl> fr.m a shipping standp, finL At any rlt[,J [¢l~l;icc~i c-t~si.t~ of the leaves ~i a '01ant ~ari,mdy ;,repared :rod prhl- cipalh., lltailltfrtcturt:d f,,r -tll~k{tlg evcll t]l~ ,Limb ;~ hlr~c alllOllltt i~: al.,J pruparcd [or chewing, and to a nl,~re limited extent, taken ill tht: p~wdqred [orll/. aS ~.llllff, alld '.1111[/.r otlc or ~ltlf, r of ii~e4e forms, lhc II.~C Of tobaCCO iS mt~re widely spread than i.~ t}~:it lit :tll~ lJ~hcr nal'c¢~ti¢ or b[imula~lt. .<o much G,r preliminary dcfini- tioTl~ T0bacco~ as a Sotlrce ~lt re;'elltle to the L l'~:sapeake ;tad (]hio Raihvav. has as its beginning, hul:dreds cd lu'¢cIlS, located pril:cipalIy throtlghlltlt Virginia and North t.arollna, and i~ de.~tlned to Iravel by rail. when fully ~rvt~n. cured and partially pre pared, in all t,robabiEty, to Ne~!~wt )xe~s. ~hcre {t renla{n, either for rc- ,Irying nl~d st.ra~e t~, await rc{vr- ~r~rdhg re, !!he t!/l!a¢c~ faclr~ries at [~ichm,,u,1. I_,,ui>v:lte r St. Louis, or c!st, i~ tr~lt-hZI/ed t/} ~'ewport .~e',vs i,,r exl,,~rri!l~ ,m .?1~{,..ailhlt¢ to Ow (tlttlltr:t'- ,,[ =[1¢ ,,~{~ri~[, 'N&I tie;t?[) the t-i,acc<~ shipped thr.uKLi Nt.~p,~rt Ne~s is Ollly a iracti,,n of the t,,!al which is being .lfii~l,~d 4:dly to all imrts -{ the United >t[LU'S. l*tlI ;iS Xcx~port News is ad- iaeent !o l~'~th the t~illacco-growing ,li~trict and the major ci~{arette lac- ~qtc, ue,,ert!!ele~a L)l>{der the {~,1 L ~iu~ rcc,,rd, fr*m~ figures picked at ~alui,,:n fr~an cxi,til:g files: Durii~g tile peri~M (r,,m iq~ d~rough tl~e present, there have been shipl~t through Newport News. a I<Na| of 46.8~5 carloads of leaf tohact~o. O~ wbicb 12,269 carhmds were iola,,'arfl- ed aver the Chesapeake and Ohio Railway Company's exw, rt p~ers Io placticatly every omntry in the woe|d, the bahmce g,,ing int,) the Railw~,y { "Olllp;u2 }.'~, tltllller{)llS \\'arehml~ where re-dryin~I anti nnai eurlnK l;r,>ccsse~ take place x~!:i~.e g~.'¢alti~g .rders t,/ re{~wward tn ,,::e of ,~'.~et':l~ Iob:lCC~ coln[.vtzlic~ f~*r Who~:~" R~og~nt the tJlaccu ha~ heel/ ::0red. Thi~ :,'ll:lt'Ct'. h~t[1 the ex]g, rt ar.d ~..Ite ~[o- nlestic, ~or that p~ric~i, repres~lt~ the >tat~ering fi~ure of well over EI;GHT tltNI>R[<D hlIt.l_h~N POLTNDS! }lardlv a car th,at ,,r manifest train v~cr arri~c~ :~t Nct~g¢,rr .Newg w~th- ,,ut ha~ing anl,m~ it~ c~nsi~t ~ve.nl[ ~;t:~ad.~ ,~i ti~c pr¢cim~s weed. ~, ir~mia and North Carolina to- ~ ~; [ { I k" { ~ ~ i C { { [ } repre~,mr oniy a sn'.Ml l'lrti°rl t~( the ktt~iu n tobacco-prodtt¢- ing totalities. Kentucky. in addit;,tm C&O--PM r,'40l 035020 "!
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l \ T ;.40 '7 0"3 ~02 El 2
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!~atc~ until the >eollmg< a!,pear ahn~,~ the t~rntiIl(1, atter x~hiC~ tht" Co~.cl'i!l~ i~ reil~,ved. ;tl)d tl~ pr~,lcct the ),~tl~l~ t~l&lltx )'l'(,[?l ~r~'. {,I l~}liC}l [}le} ~IFC ,Yxtr'elllvl~." ~'ll~i.'i~K'. tht, be{Is are e~v- ('red eL[ II{L~l~t v,{th !llat>. \~ -')~dl ZL:, the p[ant~ can hc haudlc({, they are i,ick, d .ut {n n~w- in a F.arden hod t~ here tla') rt,ii;aill prutectcd ir~l)l night ir,-b until thin ba~e deveb,T~ed five nr .ix leave., :rod haxc a heh.'ht (d from three h~ the inches. Ih%' are then read) i,,r tranq~lanth~g, b3 preicrence h} m~i~.t weather, hlto pre- pared drilI~ twenty tn t;vellt~:-ti~c mclws apart m the fidd. The trail>- planting is done ah,mt the end of .May, and earlier in Incalities (tee (tom cart) {rosts. (;rear care is taken dttr- illR the gr,,wlng prncess, dama~.d JULY, 1938 lq]~h au,L lnu:~ lz tl;c hare. ~r curm~ l'.~u,c, Cur ,!r',h:4 1 he <urin.~ .i Ii:c ~ca~e~, ~ bicB i,~l- ),,x~ d;c har~c~tin,.:, has i.r it. l)ur- ~h~. toba. ol hv a ! r,,c~÷s ,)f ~l,,w (er- l~lentafi,,n, '.vt~ich ,It:', chH~- tilL" , [~ar;[c, t~l'i~tic arr,i>zt ,~{ tll~ !+!alll. 2~lltl-t'tlr- hi., i~ enlp],,)ed i~ar;c!v in e;l~ter!l o,tmtri,'~, l,uc i~ ;;,, !o:lger practiced in the >.-ca~ic, l .~m-cured distri~:t ni \'irgillia .\ir-curhzg i. perf,~rmed in bare. ],r,,~ided ~Gth a free circulati~n ui air. hi t~re-curhlaL ~tm~ firt'~ cue lighted ~l the tl,l~,r. ~i .'he bare- or x~areiumxcs, to rai-e ti,e temperatltrg ~low[y to 1.30 degrees Farenlleit, and there it is maintained for Dora 4 to 5 clays The term "tobacco" is claimed to lk,~phc the (act that Sir ~.Vc:':rer t,:a[eigh i- credited xxith l)~i:lv t!:~: first Engli~i:man t,~ sm,,ke Ihe x~,-,, l relia- )fie ~,,uz'c<s hate )t lh:i~ lCd:: Laite. Ihv dr-t !,.~crn, r ,,i k ir~:mia, af~d Sir Vr:m~ i~ l)T'akc hr, ,t~u!~ ',', irE1 thel~l -f t!ie l"l~gi[>)l cr~,wn, the h~:~ ~¢!-~lel;t$ alid ii~ater[:¢~ ~[ t¢ha.v;, ~muki:tg., ubich fl>5 }~al),h,,} ,,~er t. 5r ;Va)ter I'~Meigh. {hr,~ugh the {tlduc=~ce Oi [{aleigh, ',vh,~ 'tc?,,ke a pi~-e t~f usbac¢o at little i,ef,,ru h~" we~t !~ dee scar* becanlc r,,,,t~-,) an~,m~ the ]:,~}eabcg~ian or,tiEr ice <. ~'(1 (Hlt' kl~tiu~ '.tlte:x ~I~ACO) W~r; first tl~e(l a~ a nal'cutic it: ally O{ i~$ variotla (orllt51 htll theft- tloeMl't ~etll , ~ oMimwJ on Pag." 45 ) J RT:,',IO'I 0350283
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% of the Staff and other Officers of the C & 0 durle9 and after Federal Control of the Railways and fhe refum of Mr. Stevens to ENDING WITH THIS ISSUE, Mr. Frazier's "Recollections" have been both educationa] and entertain- ing to members of the Chesapeake and Ohio-Pere Marquette Family, and have furnished pleasurable reminis- cences to tho~e who worked with him in the days of which he writes. He is to be congratulated upon this fine piece of work, The Magazine takes this opportunity to thank him for a valuable contribution to the archives of Chesapeake and Ohio history, ~/V|IE.N the United States Govern nlent took over the operat{uns HARRY FRAZIER ,<tevens' death, proved the error oi this pr¢~phecy, as the facilhie~ ~hich }lad been provided, and which ;vere in lin~ with the {rwtner President's anticit,a- lions, made possible the conlplete aod satisfactory service to adl of the coal mines, to the great joy of the coat oper- ators and the operating department af the Railway Compa~ly.) Most of t}:c of~ccr~ here. uhen tile road F,a~sed into the hands of the Oov- ernment, had been wkh the torch,ration prior m that event, and it is in urder to recall the llallxes ~{ ittall} t){ them that have not already been Illelatti!tlc~l ell these articles, with some expt;matiqms of the Raihvays of this country duri,g the X\.rM \Vat. -~[r. Stevens. at his O~',n request~ a11d at a great persol~,a3 sacrifice ii1 his compensation, was tllade the Federa] Manager of the Chesapeake and Ohio The entire pcr- sonnt:l ~xas then serving the Governtllent. except fl~r x few officers ~Ji the t.'~wporati~m "~ha ~ere retained t< care for its itltereM~ f:ra,k "irumhnl~ :emahw.[ I hairman of the th,ard f I )irtct,,rs, and \ Tre','vett Secretary a;>t l'rca~t:r: 7 It. i'~. tl!:lHill~toll lbccai|le l~resit]c!~t awl t L~ t;1;U;:::: \ ice-t':'t.sident, with _\. t" Re:trick ,:,i New Y,,rk ~- ~,,;:t>c], K. M. Thomas ~as made t',,r~-rate .\udit r. ;Ul~[ ', L,~:/~,!'ntt! [~::g:l;ctr, rdainmz fi~c Iit!e ~,( ~', :- ~uIrim~ K:'.gineer but rcp~,rtiu~g to !fr ~;ra[l;ull {:', :,: N~ Y, rk ,~tilce 1 h~mlas and [ uere the ,,nl.v ('urp,,r,'~:,- I,.kchnv ,ud. 3it. S1c\t!ii5 ~',as ~uhjvctcd. in a -he?re titl/e. :~ >~::,,. under a [~.cgi,mal )daoager, for ~hat had beomne, dur::~..' those trying days, tile "['ocah~utas Regic,n," which ,', ::- sisted ~)f the C &el X'.& W., and the \ir~inian i,~a:[- ua?s, [-'t~rtunateiv. the Regiottal .~,lana~er had hv~:~ :?-÷ t )l~,ratinx \icc-i'rc*ident of the N. & \V. and wa-:. :~; ,i had b¢~en {or a h~ng time, a dose friend oi Mr. -'zte~er.s This gentlentan, however, when he first went over ti:e road with the Federal Manager, expressed amazement at the extent of the development made by• Mr. Steven.~ in the coal fields of \Vest Virginia and Kemuckv, and remarked that all of these mines could hardly be served effieiemly. (The folt,>wing administrations, after 3,1r. 12 of die chatlgt.u made her.re that time and ,ilwc. as I ren~enllmr t]l~.el] i. During mo~* of the time that Mr, Stevens had been (;cneral Mau~o.. here, in the Nineties, \V..<. M.erris ~as superintendent o[ Motive Po~er, remainh',15 in that oftice flw a short tilne after the new President took d;arge, lie then went to the Erie Railroad in a similar :: ~a~,aciD. at!,t was f,~lh~ued here by I F. \Va!*h. who in mrn ~as f,,ll,,~cd ,,I: ]tllv I. 1912, b~ b,lm R ,;,~uid ';,,t;h] had served :it {he i{t:ntingt.*l 51:,,?~ as a.:: .... .\i,],tentice, later as a Gang l2r:,reltlall, and still 'aver he : i,td:alll~,, a i)eneral le~lrelllaII at the ~.ic 11111i t \'g.. ~ ~o'[2s : }iv" hxd, during that time. and ,,thi!e servin~ a~ Master 2[e,:hanic, ~i>cl3" equipped hhnsc[f .:-r tin,' it< :~r 7,,,si- ti,m to which he ~as ai,p, fime, i in 19t2, ?,~ stud.',iag 2'Iecl~anlcal Engineerin~ und¢'r >pocial :!!Hruc!-r. ,lurblg zl:e e~e,mng trouts ui :~1111,3~i [:t,,e.~'ars. [hL~ the~!retleai ::amiu~ and his skill aa a machh~t~,t, t,,.~cther ',;:d~ i'.is :~lt!u~ate ktm,alcdge c,i the practical ~,,rkit!g ,+f d~i.. ,!%,artmcnt. had made hiln an outstanding man in his 'Sue. h~ 1917, be/ore t:ederal C.amd of the Raihtays, i:~ sl<:lt six TI1OIltllS ill \Va*hiaKtem ,'cg t ha{rmae! ,~f t~ie .~,Iatlagers' E't)llllllillee ,)f the ral~vai;-~ ()i ,'}:e 5~,ulll- easterII territory, ill a eotlcttrtt.d Ill~weOlellt ',~lth their shap employes to harmonize the difterence m working a~reetllents. This resulted ill one agrcetnent ior all the railroads represented. \Vhile in Washington. I;ould was selected to go with a special v-mmissi~,n to Russia. in~. "~, connection with the military c,:,tltr, d of the railroads Of " that country Iwhich was already in the Wor]d War) C&O--PM ; L ~lRO 1 035o2a,_¢
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J ~~ that the knc,'wl-" ti " fbe[~:6r"~ frBncAw~ri['a. :\s early -.~ ]495. at the termination of the sec-,?' OIld vo%~ge i~ CO|llmbtls. WHIN[ ~ ] brought back to .<pain c*mcer~ snuff taking, and tobacco che~g 'tlt,~,.lt, y..ident un the coast tl[ South ~' America ii.t~l.'-O_. _ks Anlerlca "e,a.. ;~'~,=it__ became m,,re fully ktlown that the cort~l~:pti~ ~f tobacco es l~i~'~b~". .~.-:,,king. ,,'as of great 1' usage, and bound up with thu u~i,,t I f~nt a~l mltmm trfl,al ,ere-{' :he historical and agri- i ~ultl']l';il~l]l~'of the plant. ] -.T~li~'d~ iwtu,:r~ ,,f n:da', i. a t ~ltottl~ing o',nc..'zr,,.~ing l;m:~-r ,,.irh I~ • eae~)t.ar It'> a {ar or5 • ItomT.th~t~dilllil~i~.,:s and h,,mcmadc ! ~:tta~"c, pr,~lucts are / "*~ ,,~,: b,t':a~ Jo,~,,w fi II'TwhM~ to ,.v,~rk. tberg will be talaacco. Muling it--~..~t:ccess "to everymlc ] ~,,ucerned ! :iiii!~ii:ii:i~ [ R ],',fro 1 0350285
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CUNARD WHITE STAR ~ :¢1 '~i I~i~!~' ' ;~ I ~< 111 ~i ':<I ~ii , :,t. SEA-BREEZE CRUISE5 i ,@,'<1 ltd ht !~$ / /, | THE FIRST HUNTINGTON ~ ~i [ NATIONAL B:xNK Huntin~on, W. Va. A greta opportunity tor your 1938 vocation! Sea.Breeze cruises al- ready tamous [or the variety o[ pleasures they provide at one low all-inclusive rate . . . now o.ltered to you and your [~:mly, exclusively, at cne-~ourlh oi[! Book now . . . give \.-ourself sports, sun and se~ bath!ng b.:'t?,;'In: enlert~mment ~nd g'Qr;tor- ot,'s [cre'.gn ports The zchedule be- low offers lhe wides~ choice , ond c~ trc,--..;port~It!r-,n men "/Otl know ',,:?m~ Cun,~rd 'White Star' nleQ~,s [n ~emmcnshJp cmd service] CHOOSE FROM / THIS PROGRAM 1 l~l IRITISH TRJ&DITION DISTINGUI~iHI~ CUNARD WHITE STAR i G.w-*,..l Om, cm: Cortll.d |Idg. 33 C%.,c)~ SL New Yorl SPRINGS STEEL TIRED WHEELS LOCOMOTIVE AND CAR WHEEL TIRES JOURNAL BOX LIDS YOUR BANK i Our purpose is ~o serve ,/ou in all your banking needs. 0 THE NATIONAL BANK of GRAND RAPIDS M.mb*, F.,~=,.a Dem~,~t l~u,~ce Cerpo,~o~ THE INTERSTATE A_MIESITE CO. IIqTERACO STONE TREAD-- AMU~SlTE DO%VNARD ROCK ASPHALT Cold ily Alphlt~c Conc~'etea los Pavia9 Gride Croml~ugll~ D~.ewlys Ind StrletL Plint i¢citld on C • O R/L At Snow Fl~kl, W. V~, DISTI~ICT OFFICE: M~Hb.rg. W, vi. G~ OFFIC£~ w~mhsgton. D*I, Inq.irlel S.lielled YEARS OF TIMBER LIFE SAVED WITH %* AMCRECO Full P,**~u,. Cre,,s.led TIE,~PILES--POLE,~--.-LU?,II]ER AMERICAN CI~EOSOTING COMPANY COLONIAL ~ GEORGIA C~EOSOTtNO I ~ ~ CREOSOTINO 1 ~- ,.-h:~., OOVEKNOIk CABELL .'~ ~ii~ 3 ,~ ¢ H U N T I N GTO N ,W.VA. HUNTINGTON'S NEWESTI ... The L=l.~t ,,, 4pr~,.l~.r, WIRE RESERVATIONS OUR EXPENSE L f I<; l h? r ,'d O l 0 3 ~ 0 2 8 7
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NEVER KNEW..." Board Conservation and Development Gov. Clyde R. lfoey Chairman ex-offieio J. Q. Gilkey Vice Chairman R Bruce Etheridge Director DIRECTORS ]. L. Horne, Jr. C. W. Roberts Sant/ord Martin J. W. Harrel~on Jos. J. Stone Jas. L. McNair F. PierQ Carter tlarry R. Lindsey Jvhn R. McLaughlin Roy Hampton E. I. Bugg "1 never knew there was anything like this in the South!" exclaimed a business man from the North after he had traveled from the moun- tains of North Carolina to the seacoast. He had just finished a trip which began in the tableland of eastern America From the primeval, rugged beauty of the towering Smokies he had come ti~rough the well-developed resort and mining s~octions of the Appalachians, then down into the Piedmont country ~ith its humming ci;ies, hundreds of textile, tobacco, furniture, and other manu- facturing plants. Over one of the most complete state road systems in America he passed through the sandhills and central Carolina, saw the thermal resorts, the beautiful universities and colleges, the fertile farms and the teeming tobacco auction markets. At his journey's end was the history-drenched coastal plain with its game lands, great truck areas, beach and fishing resorts and seaports. Until he had seen it, this visitor could not dream that North Carolina is the state that has such things--all crops, all climates, all industries, all resources, all soils, all altitudes and all landscapes. This little continent within a state invites your interest. overnor's ,_: .o pilalilq ommil[ee FoR NORTH CAROLINA NORTH CAROLINA TO-DAY, published by the North Carolina Department o] Conservation and Development, Agricultural Bu~lng~ Raleigh, N. C.; Editorial offices, 931 Sir Walter Hotel, Raleigh, N. C.; Business Managers, Edwards & Broughton Co., 210-214 Sallabrrry Street, Raleigh N. C. Single copies, 25c; single mail subscriptions, $1.25 per year. Group subscription rates upon application. Photos in this issue will be [urnished ed#ors Upon request. ": .... fqT;.~O'l 0350289
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NORTH OARO Vol. ! I), /EI6H, I_IEI The Romance of Tobocco... ANTICIPATING add Queen Elizabeth was only mildiv curious at the strange plant Raleigh's colonists brought back from Carolina. But tobacco rooted the first planters in Ncrth America, stabilized their eco- nomics was the first article of overseas trade, launched the distirctk, e prantation s/stem And ironically, on frontierq where Elizabeth's precious gold has not even yet been coined, tobacco is t~niversol!y acknowledged a medium of exchange. It is perhaps America's richest contribution to the world, certaM!y its most fascinating Consider the romance of this crop: 4(~ years ego, such a miId and beneficient stimu- lant was unknown ta most of mankind--tobacco was the secret wearth of a handful of savages. Today it is the indis- pensable occupant of almost every man's packet, every woman's purse, In North Carolina, tobacco is not only king of crops, but king of industry as well. North Carolina grows more tobac- co than aW other state (around $30,000,000 pounds annually); North Carolina produces more cigarettes, smok- ing and chewing tobacco !around half a billion dollar's worth annually) ; transports more tobacco, exports more. An important pursuit, the production of tobacco is also an enthralling one; its fascination for man did not end with its conquest of Fis favor. Tobacco has individuality, a tempera- meat proper in a plant which man has found so desirable. It can both bless and baffle its growers, and as their tobacco thrives or languishes, so thrive or languish thousands of North Carolinians There%re successful tobacconists--~planters, merchants, processars, cre those who best can guard again~- the caprices of planting, cultivating, curing, can- 5itioning, grading, selling, buying, blending and processing the leaf. From seed to cigarette is a long journey, and the pleasure of your smoke is a refinement not compounded merely of labor and capital Four centuries of cultivating this precious commodity has bred a plant suited to its purpose It also has bred men who are alchemists as well as harvest- ers; e}es keen for gradation in color, fingers sensitive to texture, noses acute to the slightest differences in aroma.. From "The Pageant oJ Amerlct~" (7oplrr~ght Ya, Ze Univeraitl/ Pre##, !!~!!:q!? Tobacco's fondest legend in- sists Sir Walter Ralelgh ~s England's first smoker. A familiar old print depie~:s Raleigh's astonished servartt attempting to extinguis~ tl~e fire he thinks is raglrtg ~.~e his master.--(From "Heroes o/History," Lothrop, Lee and Shepard.) Left: Earliest tobacco loctte~ boasts ..... e o,~ .e~e~e riv ..... Sailing rnerchants ~nd planters bartered her¢~': ~nd /oundation o/ the present a~- ti~n system uas laid. Because the Carolinas" trade w¢~ art English monopoly. Brlt~hers early acquired a taste ]or flue. cured tobacco u,hich has per- sisted [or [our eerauri¢~, 1 0350290
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THE STORY OF TOBACCO Roy~t E~ Penn!/ STARTING YOUR SMOKE TO YOU One of nature's tiniest seeds, tobacco is so,~n in ptontbeds in newly cleared • lands, the sprouts protected in the early spnng by a cloth covenng (above) As the season develops, the covering is removed and the young plants permitted to grow to six inches before removal (below). Although possessing remarkable recuperative powers, tobacco is a delicate young plant, subiect to many diseases Woe ~isirs the section ~here piontbed in- festation breaks out in early spring Sometimes farmers must travel hundreds of miles to buy plants to replace their failures. So precious are they that in a year of plant scarcity farmers will sit up ct night with shotguns to guard their c,:,n SULp!'; ag,sinst raiders Below, right, transplanting underv, a} The-"machinery" is mostly the two plant- ors, a row to each, v, ho put the young plants in the ground as the vehicle r*no~,es along Water from the barrel softens the g'cund Not infrequently three or four or more transplalqt~ngs are neeesscr'. ~e"ore a proper "season" roo~s the !,oung [ Icnts and starts then] towar~Js n'cTur:t'. Planting The Empire of Pleasure Of ,50.C rs'~'F'~ acres usudl,/ de,.oted to to- bacco in America, North Caroiina plants. more than a third (61-/,-/00 in 19351. Start- ing in the Piedmont section, tobacco was iJ" the state's first con martial crop Produced 1 for export only, it ~as packed into hogs ...." heads, dragged by oxen to river landings, and bartered to merchant sci!ors. From this intimate cor~roet of gray, ors and cam- pent~,,e bu,,ers sF.rang the curious auction warehouse s~,stem of today From the Piedmont, the geographical cen- ter of tobacco production has moved east- ward, and now Pitt, in the New Belt, is the state's greatest producing county. Tobacco growing is highly localized be- cause the plant resF.onds acutely to pe- culiarities of soil and climate. North Caro- lina's tobacco is flue-cured but four dis- hnct types of it are grown in the four well- defined belts af the state (O)d, MiddD, New and Border Belts). In addition, the cu{ti~ation of Burley fs growing in the moun- tain section. Every tobacco roughly has its own ~ket, usually a market built by generations of constant use Eastern Carolina t'ObOCCO. light-bodied, }elbv, colored is preponder- antt} a cigarette t,.pe, whiie Old Belt to- bacco, with greater r=nge in color and ~dy,, is. used also for piF:e and chewing. Burley I is for cigarette ant ~ire b~o b~lt can gra~,;' tobacco which close'q.' approximates the bad} texture color, cromaof that grown in another e~en though it be onF,' a few relies R T,'dO ~ 03~02 9 "1
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THE STORY OF TOBACCO Cultivation Journa~ and ,~entln,ff Handgrc~vn, tobacco is a ]3-month crop While thG ~ar's curings still are being moved to market, next year's plant beds must be prepared, After early cultivation (above), every' leaf in the field demands individual and constant ~., - ; ' ":r': " :: ~M::~ attention :'~ ~':"% "~;'" ~ Voracious v, orms appear, and no remedy has been discovered since they [ r :"" ~ " .:2, ~: plagued Indian patches, except the homely one of plucking them off the" leaves bs hand Between plowing and hoeing, the farmer sprays, plucks the tops of the plant to force the !eaves to spread, remo~es'budding suckers lbelow), scans anxiously the ~eather signs. Before rt goes to the factory, every leaf of tobacco re.st be handled individually fwe to nine times b', the g{.'.v.er, Men, not roach res, prepare ~our future pleasure. 'kvercge stare ,~ield per acre is as !ittle as ~2~ pou,~d~ ~1q32t, and as much as g_db paur~ds ~ 19~ i, but scme farms average over r,..,,~ ct,,a,..u,,, 1,20~ pounds. For P]I';KO'I 03 0292
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THE STORY OF TOBACCO Horvest • ,4 % • -. ~.q Con~,ervation and Development( WORLD'S MOST UNUSUAL HARVEST In July, August, narrow sreds are driven between the rows (above) and pilu~d with the green, slightly turning leaves. At right, cropping in Woke County. Cropping begins with the bottom leaves (called lugs) which ripen first, proceeds up the stalk as the leaves mature. With a tying technique universally used in the task, workers (below) bunch ~he leaves, hang the bunches over "tobacco sticks," the while clucking happily over impending auction opening Tobacco harvest season proceeds north cnd west--first harvest in July in the Border belt, closely followed by cropping in the New Belt, Middle Belt, Old Belt. t'-~ 1" ,'q 0 '1 0 3 502 93
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THE STORY OF TOBACCO . . . • Curing COOKING YOUR SMOKE H. K. Witherspaon Typlcal curing barn in Wake County. Some are now o] brick. Unfailing met" of T'he tobe~cco farm, the log curing barn (left) receives the green tobacco. Heat from the fireboxes goes through flues across the barn, back again, smoke issuing on the same side as the firebox. Heat must be careful!,/ applied, gradually at first to yellow the leaves, then increasing to drive moisture from the leaves and midribs. Flue-curing represents an evolution from fire-curing (charcoal,t. The process makes essential the presence of abundant firewocd on a tobacco farm. When other lands attempted flue- cured cultivation, they were compelled to send to Carolina during curing sea- son to get tobacconists to do this task for them. Carolina curets go a~{ over the world, cooking tobacco for Johnny- come-lately planters unable to master the art. Tier on tier -- tobacco in a barn. Journal and Sentin¢l The fire must be iust right. F~l';qO'l 0350294.
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THE STORY OF TOBACCO Curing Living With H is Work The work of months can be ruined b',, carelessness at the cunng barn, and dur- ing the curing period of from three to five days, constant '~igil must be main- rained. Not on!y may un- even heat damage the to- bacco; but ~here is danger of fire, which ~t in- frequently destroys a born of "¢:~r_ ~irJr'r:[r'gs. Ttte ~arrr'er therefore moves to his curing born, where in a shed attached he lives until curing is over. On o straw pallet he catches a few naps, but mostly he is alert to ~he thermometer inside the barn and the fire in the flues CharaCter stic sight of the Carolina countr~sid~ at night in :the late summer, the giowing coals in the rurina barn ~ ~;~ box silho~::tttt~g the ione atter,c:ar~t; characteristic smell, the pleasan~ Qroma of mellowing tobacco. F.ue-cured is Arnerico's g ~ ..... e x ~::rort tobacco De~e!opr-nent of cigarette srnoki:-c~ b-r <d flue~cured [ '~C C]~ Jr'~ C]f J ~ ~ mild aromohc qualities Highest prices ere paid for bright ternon !,elicit,; the c!ass aiso pro- guces shades ranging down to mahogany brown, Burley tobacco is air- cure:~ Instead of croppMg leaf b:, loaf, the entire ~to!k is cut down, hung i~] well- ventilated barns to wilt and dry Artificial heat is used only when damp weather menaces the tobacco. t/. r~ T,.~ 0 1 03502 92~
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THE STORY OF TOBACCO Crop Rel,ortith7 ,~¢r,'i,'~ .... Grading One mcre test of skiI) confronts the farmer--grading his crop. Left, the women are separating cured tobacco leaves into piles according to color, tex- ture, length, soundness of leaf, and other qualities. The men ore tying graded leaves into "hands"--bunches of tobacco tied at the top with a leaf of the same grade. Tobacco is sotd in basket lots of identi- cal quality, and a few inferior leaves will depress the price of an otherwise good lot. As a consequence, sharp-eyed speculators bid in badly-sorted tobacco, re-grade it, sell it immediately and profit bandsomely. A stick o/ tobacco hands ready lor market The t'obacco of any one type will yield between twenty and thirty recognizable grades, the leaves varying widely not only from barn to barn, but on the same stalk. Manufacturers buy specific grades for specific purposes; bid strongest for leaves suitable for cigarette production. Tobacco "hands" (see back cover) are straddled upon tobacco sticks (about 4 1-2 feet long), and bulked in packhouses for proper ordering. When it is "in order" (has proper moisture content) it is ready for market. If too dry, it will break under handling and sell poorly; if too damp, it will mo~d. Ready at last, a load is put into auto, wagon, trailer or truck and hauled to market town. RTHOI 03S0296
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THE STORY OF TOBACCO Rolling hogsheads at tobacco to auction in eolorffal days Front "The Pageant a! America.'" Copyright Yale Uni~,ersity Press. Auction In colonial days tobacco was packed into hogsheads and roiled to river~-own wore- houses There buyers broke the hogsheads open and inspected samples of their con- tents, before bidding for it. Because of this practice, a tobacco auction is still called a "break" throughout the south, though the Iooseleaf method has prevailed. Now tobacco is hauied to one of scores of markets, there neatly arranged in shallow baskets, placed in long rows on the ware- house floors and sold at auction. Tobacco warehouses are highly specialized struc- tures, the requirements being one-story construction, ptenty of open floor space and o multitude of skylights for natural light- ing. Tobacco auctions in North Carolina are conducted at the following towns: OLD BRIGHT BELT: Burlington, Madison, Mebane, Mr. Airy, Reidsville, Stoneville, Warrenton, Winston-Salem MIDDLE BELT: Aberdeen, Lauisburg, Carthage, Durham, Fuquay Springs, Henderson, Oxford, Roxboro, Sanford. BlEW BRIGHT BFLT: Ahoskie, Farmville, Goldsbaro, Greenville, Kinston, Robersonville, Rocky Mount, Smithfield, TQr- boro, Wallace, Wendell, Washington, Williamston, Wilson. BORDFR I~FI.I': Chadbourn, Clarkton, Fair Bluff, Fairmont, Lumberton, Tabor City, Whiteville. ht 1 "I 0350297
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THE STORY OF TOBACCO ......... :~...,,,.,~ ......... Baskets Acres of Baskets These shallow baskets made especldly for tobacco auctions ore manufactured onTy at Yadkinville, N. C., and at one plant outside the state. At the D. A Reyr'.olds Basket Cc~m- pony, Yadkinville (where these pictures were taken I 50,003 baskets are made annually for warehousemen, with only one operc~tion (smoothing the oak laths, at left) done by machine. Workers skilled in o highly local- ized craft take the native wood, bought from Yadkin farmers, and build baskets that go around the world. Upon a metal table, hatchet.men tack don~ the woven /rome, hall going ]rocn mouth to wood as ~aSt ~ on~ ~n CO[~F~t, Then (right) the /rome is soaked a /ew moments in plain hot water, to so]ten it /or molding. %iildli% i Now bent around n steel /orm, another mouth.to.hand.to ~oood cra/tsman quickly puts on the strip (lotoer le/t). And $0 acres o] baskets grew around the lithe plant set /ar back in the ttsctods, where they are numbered, seasoned, shdpped ever~u~b~re that tobacco is handled. Baskets are made 6 or 7 months ~ Fear, in two sizes; sold direct to warehousemen. T OI 0350.298
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THE STORY OF TOBACCO Auction Largest major crop in the world to be sold ai public auction, tobacco's selling system preserves the exposure and inspection of every particle of wares, the direct and inti- mate contact between producer and buyer. Slight differences in tobacco are so im- portant to processors that they want their buyers to personally inspect each purchase At right center Charles Johnson, Liggett Myers buyer, inspects samples of a basket at Goldsboro And at lower right, L. H Starke buys tobacco for the imperial Tobacco Cam- pony, one of the largest ex- houses Distinctive market place of the world, a to- bacco auction fascinates visitors with its speed and efficiency. Down the long rows of tobacco (as above at Wilson), pass the auctioneer and a dozen or so buyers (each major manu- facturer represented). Upward of 300 separate lots are sold per hour, bids usually being made silently, through same gesture or glance of the bidder, which indicates that the previous bid (called by the auc- tioneer) has been raised by a prede- termined unit. / The grower pays a flat and commission fee to the ware- house for use of auction facilities. His tobacco is weighed and each basket tagged with name a n d poundage. Bookkeepers write in name of purchaser, quick- ly pay the grower, collect later from buyer. R T,'gOI 0350299
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THE STORY OF TOBACCO . Auction Most picturesque fgure in rebate% the aucT[Crsee~ mu=t hgv@ kcen e}es and a gJi~" :ongue Chanting his unending, urfintelligible song, his eyes are fastened upcn the buyers, most of whom make no ~ocaI bids Indeed, a spectator can watch arl auction a[t do:. s~d never know who is b~d&ng But to ;xe cuctioneer the snap of fipgers, the hf£r-c of an eyebrow, the wink of on eye are significant. As a consequence the bidding soars with amazing rapidity and a pi!e of tobacco is sold with the pro- cession hardly stopping for on instant. Within the space of a few months, a Carl Pierce, Wendell Jim Pearson, Kinston huge crop is personally inspected, auctioned, a transfer of such magnitude incredible until one sees the operation. In a single market town, upwards of 2,0CO, CCO pounds may be sord in one dcv, and such dispatch requires the utmost economy of effort. It is therefore well understood that a buyer is inconspicuous if he is disinterested. The moment he makes his signaler so much as glances at the auctioneer---he has placed his bid. * -t / E. M..Littleton, Goldsboro Auctioneers---eyes keen for the slightest gesture Iron) bidders, Bossy Gri~in. Wendell I=1 I,WO 10350300
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THE STORY OF TOBACCO .... Redrying To buy tobacco one must maintain ar e-::tensive corps of specialized bul, ers, arid be equipped to pre: ar~ c~c store it immediate!y. As a consequence, man,, ,ndependent dealers oF.,erare in North Carolina, buy- ing and conditioning upon order or for s::eculation. Here is thE, way Monk-Henderson Ca~Fcny, of Wendell, for instance, operates, ~ith capacity to handle 5,0CC,~CO pounds annually. Tobacco it purchases on warehouse floors is imm,..edfately shipped to the redrying plant, where the stems are removed ard the tobacco tumbled vigorously in the cleaner (right]), cast out upon c csnveyor for minute inspection (belawl. Tobacco is then conveyed through a k~.ce o~en, where the last particle of rndstur~ is removed, passes on to c steam chamber where iets put it backinto predeterrnin~:J and uni'~c~" "order" The conveyor drops it into hogsheads ~coe:ered in the plant) where a press squeezes it into a compact mold. Weighed (below .~. .... right), it is labeled and stored, or shipped to foreign customers, Biggest single consumer of tobacco is evaporation. While in storage for ageing, tobacco undergoes annual "sweats" or ferme~.tatior% a natural chemical reaction which brings the tobacco to proper flavor. In the pro.cess, how- e~er, it loses more than 15 per cent of its weight, a circumstance which causes a curious dis- crepancy between statistics on tobacco as sold and tobacco as manufactured Hundreds of smaller manufacturers depend entirely, upon indepenuent,~ "~ leaf houses for their supplies, placing orders for certain types and grades, and only skilled judges are competent to filJ orders from a crop RT,'.~Oi 0350301
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THE OF TOBACCO INDUSTRY AT THE HEART Empire of tobacco cu(ture, North Carolina is also the capitol of tobacco manufacturing, with the fields march- ing to the very doors of factories. More tobacco is processed in this state than in any other place in the world. Reidsville not only is agricultural center of o large tobacco-growing area, and auction town, but is also site of a Lucky Strike factory (abo~e', of the American Tobacco Company. Makers of every form of manufactured tobacco, Ameri- can's far-flung operations contribute to the commerce of every section of North Carolina. In Reidsville, these OF RAVe' MATERIAL operations include purchase of r~w mGteriol, its pre~ liminary processing and final manufacture, and together form the chief industry of the town. When Postmaster-General Farley dedicated Reidsvil[e's new Postoffice, American's Reidsvirle Manager, W. H. Boyd, handed Mr. Farley o check for $210,0C0 which .... covered the cost of the new Postoffice, and also repre~ sented a day's purchase of revenue stamps for the Lucky Strike cigarettes made at Reidsville. A new Postoffice a day is the manufacturing pace of t~ American Tobacco plant at Reidsville. ~'Z: .... L .... JUt ........ j . ,~.. i, ..... i i .... . i !1 ...... : = ] 0 I 03 503 02
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THE STORY OF TOBACCO .................... ~,,-,ii!i.i iI M a n u f a c t u r ing Brought from markets in hogsheads, tobacco "hands" are put upon sticks and conveyed (cbove background) through the Reidsville redrying machines, properly "ordered" for ageing, rn storage two or three years, tobacco is then bJended and crossblended with Turkish leaf and with leaf of various types and },ears, so that idiosyncracies of any one crop ore erased. At right a tub of aged, cut, blended tobacco is ready for the hopper of the cigarette machine, Royal Sands, Eeids- vilie, is holding typical cigarette leaf of tobacco used in making Lucky Strikes The girl is a "catcher," whose duty it is to inspect every cigarette coming from her machine, re- jecting any which fail of standard. From the catcher the cigarette: fray goes to the packing machine. t~ T HOl 0350903
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II THE STORY OF TOBACCO . Faster than any cat can wir~k its e~.,e, Lucky Strikes roll out of the machine. Left, a girl constantly samples to see that the cigarettes are uniformly packed with to- bacco. Right, the speeding ribbon of cigarette paper, sliding into the box where it raps around the tobacco, issuing in one monstrous ser- pentine of paper and to- bacco, to be razored into proper length. . Manufacturing Vigilant against the tiniest irnp'erfection, the catcher (below) transfers cigarettes from the machine tray to the packing rocks. North Carolina is chief producing point far three largest cigarette makers, in addition processing every form of tobacco. Large auxiliary industries have grown up around the plants in the state• ,~ 0 1 0 3:~, 0 o'-- " ,s 04.
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THE STORY OF TOBACCO Manufacturing Into the packing machine go the inspected cigarettes. They flow down into three rows (7 on top, 6 in middle, 7 on bottom, as shown in picture) and the package is wrapped around them, sealed, stamped-~ standard package of 20 cigarettes. The operator is putting a stack of labels into the machine ]he packages move automatically to a cellophane-wrapping machine and came to the girt (right) who places them into cartons, which themselves are sealed automatically. Carton- filted cases move by conveyor directly into freight cars, shipped irnmediotely in trainload lots, to a market which girdles the globe. R I",'~0"I 0350305
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DURHAM'S INFANT GREW TO AN INDUSTRIAL GIANT... phnto b!/ ,¢~rr-Air. 1"he. Air L'iew o] Durhrzm's Lig,~ett and Myers Company, manu/actl*rers o/ Chesterfield Cigarettes. Durham was first to manufacture tobacco in North Carolina, the first shop opening here in 1858 Yankee soidiers during the Civil War became this city's first press agents, with the resuft that tobacco firms in other ports of the country began selling their products as the originai Durham tobacco. "Bull Durham," famous the world over had its origin here. Washington Duke and his sons, James B and Benjamin N., built a log house factory in Durham ct the e~J of the War. Through consolidations, the Dukes formed the great American Tobacco Company, which was dismem~red by the federal anti-trust laws, becoming the present American Tobacco Company and Liggett and Myers Company. Durham's tobacco and manufactured cigarettes are sold in all parts of the world. ftl;,qO I 0350306
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THE STORY OF TOBACCO . A DOCTOR'S OFFICE SERVING 12,000 Pioneering in employe welfare, Reynolds in 1919 established its medical department (staff pictured above). To guard both employes and con- sumers every applicant for a iob with the company undergoes a thorough physical examination (below). The medical center is available to all Reynolds employes, keeps check on general health, takes care of emergency illnesses. Constantly expanded since inauguration, it is now one of the modei industrial health departments in the nation. .... Industry GDOM in the of TOBACCO Greatest industrial city of North Carolina is Winston-Salem, where one-fourth of all North Carolina's manufactured ~s are produced. Superlatives are indisFensable in:desCrib- ing operations there of R. J. Reynolds Tobacco Company, The company is the largest taxpayer, Federal and Sta~e, in North Carolina, largest employer; its Winston-Salem unit the largest S!~!e to- bacco factory in the world Re/no!ds pioneered in r ....... ' .~, cc:*~FChIAg OP single brands of ',aricus t:. Fes of pr~uct ..... as Camel cigarettes, Prince Albert sm~ing, George Washington cut plug, A@e~tiser granulated, Brown Mule flat plUg~ DGy's Work navy plug, and Apple sun cured chewing tobacca--a policy later adopted by other successful manufacturers in al- most every field of production. The Com- pany also decided to concentrate its pro- duction, so far as possible, in one center. Thus in Winston-Salem it nat only makes all its tobacco products, but has there such auxiliary industries as tinfoil plant, box making, etc. R] ,.,OI 035030P
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THE STOR Y OF TOBACCO Industry FREE X-RAY SERVICE • Notable part of this expansion was establishment in ]923 of an X-ray department CuFper !eft). The mast expensive and exhaustive x-ray examination is as readily available to factary hands as it is to a cam- pany vice president, at no cost to employe. in every plant is a first-aid station with a trained nurse, giving prompt attention to everything from a headache or a bruised finger to serious accidents (upper right). In 1924, a dental .......... " deportment was added to the center, offering free examination, -. diagnosis, emergency work Instead of handicapping pnvate practitioners, the dental department has helped make emloyes "tooth minded," conscientious dental patrons Below, the dentaI office for white emp%'es Identical offices are provided for Negro workers. HEALTH RESEARCH in the medicar cer'~ter laboratory (below), re- search in the prob!ems of industrial health are carried on, records grow into statistics, statistics into valuable conclusions v~hich h(lve guided the expanding policy. f3 T,'KO 1(..]3_3.03 08
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THE STORY OF TOBACCO i n d u s try SOCIAL SECURITY CAME EARLY TO CAMEL EMPLOYES In 1929, years before the phrase became popular, social security was brought to Reynolds' employees through o retire- merit plan set up by the Board of Directors With group insurance (covering sick benefits, total disability and d~th~, the retirement feature rounded out a comprehensive empl.oye welfare program. Through purchasing power of 12,000 employes and due also to the company's health department, insurance pro~ec- lion is brought to employes at low cast Above, left, beneficiaries receive final settlement for a policy upon the,r father, an employee. Under the retirement program, male employes of the company with lwenty years continuous service may upon reaching sixty-five retire u~n part pay; femora employes ,~ith the same years' service are e!igible for retirement at sixty Retirement ~ay is graduated ac- cord,ng to solar.,' received in the lost five },ears of em- plo}ment, in no event less than ._c~ ~L', nor more than $40 CO per week Upper right, her retiremer~r check is delivered (by messenger! to Milhe Holmes, who retired seven years ago at sixty after working twenty-seven years for Reynolds A widow, own~ng her own home, she is t~,p~ca[ of many retired emproyes leisurely enjoying the fruits of their labor. Below at right, Robert W. Tale, who retired after twenty-eight years service, pictured here at his hobby (gardening) at his own home. At seventy, he, with his wife, is en)oying the independence and freedom springing from soundly based soc~ai security. All C,inserratior* ~Jrt¢[ Development pl4o[o# RT,' 01 0350309
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i THE STORY OF TOBACCO nd ustry For the i n ner Man Tire Company-oper- ated ca/eteria, tenth floor o/ the office building, one o/sev- eral ca[eter~as oper. ated at l~w cost [or workers. Camels Are Champions One o[ the na.merous atMetlc teams which represent plants and departments o[ the R. ]. Reynolds To- bacco Company in ~'inston-Salem ama- teur athletic actit'- ities. ~ T l,qO "l 03503 10
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THE STORY OF TOBACCO Chewing Out of the huge machine (above) that prepares the aged tobacco for manufacture, it goes to "coppers" who weigh (left below) the tobacco to go into each plug It is molded into a plug and passed on to wrappers, who with fine, hand-selected leaf, make a neat outside coating. At right, below, stacks of the wrapped plugs are on the way to the press. But thousands prefer "¢atins tobacco" Men have been chewing tobacco (as well as smoking it) since the plant first came to history. North Carolinians can scarcely' remember w'hen the Taylor Brothers of Winston-Salem did not make plug tobacco, as the}, make it now, for a patronage of "eatin' tobacco" customers a~l, over the ~-,~ha~ and beyond~ Tobacco for plug-making is of a distinct trpe, much of it grown in the Old Belt Heavierea,,' ~ of darker (mahogany; color, a quality much desired is "drinkability" (faculty of re- taining moisture) since the plugs of chewing tobacco are sat- urated with exotic flavorings. At Taylor Brothers, where these pictures were made, both old and new processes of plug making can be seen. If you knew Archie or Harry Taylor, you might get permission to visit their unusual factor'/. And if you were wise, and got there around noon, you would hear the Negro hands conducting their prayer meeting, singing their spirituals, as they have every day at noon for half a century. Art photos b~ San ~,:e ~ T,'~01 035031 I
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THE STORY OF TOBACCO ..... Chewing By Machine and Hand Shiny new from the press, the machine-mode plug is getting its characteristic tin tag (Bull of the Woods here). Chewers are finicky, sticking to the pronounced flavors of their habit, and brands are as important and valuabFe as in other forms of tobacco. Thousands of chewers cling to various types of hand:made plug. Below in the center the worker is making '~twist'--a form of chewing tobacco put up in rolJs Left, the ~'~st" is started. Note the hand scales---each piece must be @~iform and only practice and keen eye and hand can accompl!sh this. Photo~l b~l ~,atlz ~'allce % At cente" right the twist is being finishd (with a fancy leaf on the outside). At right, bdow, fingers made deft by sixty years of this work are wrapping hand-made piug Eve~/ :crt of this plug is in- nocent of the machine, for the worker collects and shapes the ~:i r filling, cuts it (measuring only with his eye) the right size, then takes the light wrapper leaf (o pile in front of him) and makes a tobacco package as neat as any Christmas gift. It must then take its turn in the presses. ,~0I 03S03"12
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THE STORY OF TOBACCO . • C ig a r s GREENSBORO, CIGAR CENTER North Carolina includes cigars in its bewildering re- pertoire of tobacco At the El Moro Company in Greens- boro, or,e of the largest independent cigar makers in the country, Et-Rces-So an~l EI Maro and other cigars are started on the ~a~, by weighing tobacco a![otted to each machine operator (right). In dexterous machines the filler tobacco is mofded, cased in "binder" leaves and given its preliminary shape (left below!. fancy, hand-selected wrapper Conveyed to another machine, the cigars are given their final outside cover with leaves and finished (below right ). /~l,dO'l 03~.03'!3
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THE STORY OF TOBACCO . . C i g ar s SQUARING A ROUND CIGAR In this homely fashion (above) cigars get their "corners." Under presses, they assume the modern squarish shape. Then to machines where ~hey are celophaned and banded automatically, and finally (below) to the packer for flncl inspection and packing in boxes. North Carolina cigars are sold all over the South / f ! f /q 1-,RO 1 03 503 I 4
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|1 II L.~ I,W ........ A ....... v., j
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Scene at a typical tobacco auction. t HENRY CONSUMER stepped out .f the tobacco storey ripped open a package of cigarette~., lighted one of the little, white-papered sticks and lhoughtfully fingered it before taking a long puff. S,J comm,,~place and frequent were his cigarette smokes that he had never given much thought w the reason for the mildness and aroma of his favorite brand. Now, the more he th~mght ,,f it the more he wondered about other cigarette qualiti,~,, about what ciga~ rettes tasted like before these modern type~ attained their present enormous sales. Were Henry ahle to lo,,k behind the ,m,,.-~. ~-eene he would find a compl~:x manufacturing system that w~,~lld amaze txim. He would discover that many years elapse between the time tobacco is harvested until it is made into cigarettes. He would learn that thousands of people, hundreds of machines, and millions of dollars are needed to make ci._,arett,.~ on a large scale. But perhaps most astonishing to him would be his dis- qovery that cigarette quality could not be what it is today were it not for chemists and research men who continually study and control tobacco chemical content, moisture and other physical properties. CI-II:MIS'II'S I-II:kp, I-[enry's brand bappeaed to be Lucky Strike, whose factory chemists learned as earl.v as 1917 that high acidity or high alkalinity in tobacco caused tongue burn- ing and throat irritation. They also learned that many tobacco -conditions and manufacturing operations must be contr~ted " to obtain uniformity of smoke, realizing that proper tobacco selection and blending alone v-ere not enough. ESSO OILWAYS J" ,'q O "I 03 503 "I 6
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Before these chemi.-ts unearthed scientific methods of blending tobaccos to get umlorm results, tobaccos were bought and blended hy indMdual judgment based mainly on the ~cnses of touch, sight and smell. Today The American Tobacco: Company, manufacturers of Lucky Strikes, makes chemical hnalyses of tobacco before purchasing and continues checking and analyzing the tobacco through years in storage until it enters actual cigarette production. A cigarette to be a well-balanced Smoke must have a proper balance of alkalinity and acidity. Therefore, the necessity of checking the chemical composition of the leaf at all times from purchase to manu- facture is readily apparent. The company's chemists aided in working out a blending formula t. obtain a bala~ced smoke. This calls for a percent- age of Turkish tobacco, which is blended with a prescribed 'variety" of air-cured burley, mainly from Kentucky and Ten- nessee, as well as a certain amount of flue-cured, bright col- ored grades from Georgia, North Carolina, South Carolina, dnd Virginia. and still another gr~ade fr,,m Maryland. But besides blending there are other factors to consider. SMOKE FACTORS. To obtain proper cigarette quality a manufacturer must maintain uniformity" in the texture, sm, k- ing qualities, diameter, length, and packaging o[ his product, not only from day to day hut from year to )'ear. Manufac- turing processes must be watched closely, machines checked daily. Frequent inspections are necessary throughout aging, processing, and actual cigarette making. Some of the work of preparing and inspecting tobacco begins right on the to- bacco farms. In Kentucky and Tennessee, where much of the hurley tobacco is raised, air curing of tobacco is employed. In this process, the leaves are hung in barns with openings to per- mit fret' circulation of air. Air curing of cigarette tobacco requires from five to six weeks. Flue-curing barns employ a system of continuous flues con- nected with a fireplace which is fed with wood from the outside of the building. Fuel oil stoves may be substituted for wood burners. Inside the barn the tobacco is hung on sticks. The In:at and air are regulated so that the leaves gradually turn a golden color and are moisture contr,~tled t, permit proper handling when graded. Arranged according to grades and hung over sticks in groups of leaves called "bands," the tobacco is taken to an auction warehouse. Here farmers meet buyers who represent cigarette makers, manufacturers of ,,tber t*,bacco products, brokers, exp,,rters, and independent buyers, who buy on their own account for re,ale. At each lot ,,f tobacco the auctioneer rattles off bids in his strange patter that seems a meaningless gibberish, yet the prospective buy- ers who are his listeners understand him perfectly. ROGSNEAO Rou'rI=. :ks purchases are made, buyers send their tobacco to an inspection and packing station called a prizery where it is packed in hogsheads holding from 800 to over 1.000 pounds each. These are shipped to the buyer's wareimuses. Before entering the warehouse for aging, how- ever. the hogsheads are sent to a re-drying plant next to the warehouse. Here they are opened and the individual hands hung on sticks mounted on conveyors which carry them through a conditioning machine, about 160 feet long. In this state the tobacco is returned to the hogsheads, taken to open warehouses, or sheds. The hogsheads remain in the warehouses on an average of from two to three years. The hogsheads are porous, and during storage the leaf tmdergoes a chemical alteration by "sweating" which occurs only in the spring and fall. This chemical action is merely another ~.tep in the aging and curing of the tobacco. Millions of dol- June, 1938 lars worth of tobacco for Lucky Strike cigarettes is kept in storage in this manner. LUCKIES' MILLIONS. ht the I.ueky Strike wareh,u,es ,~f The American Tobacco Company, hogsheads of tobacc.J pur- chased at the various auctions represent a constant SUl,ply of millions of pounds. In the research laboratory of the company a record is kept of the chemical eompositi,m and characteristics of the tobacco in storage. This enables the laboratory to release, at the proper time to the manufactur- ing division, tobaccos of known composition and ready {or processing into cigarettes. After the hibernation period, the tobaccos are sent to the stemmery where the tobacco is properly conditioned and afterwards blended. IIands of various types from many farms are brought together in this initial blending pr,~ee .... -\fret blending, the hands are placed on conveyors and fed to ma- chines which automatically remove the stems. As a check on the machines, hundreds of pickers and searchers are em- ployed to inspect the tobacco as it emerges t,~ he sure that all stems are removed. A conveyor carries the tobacco from the ,temmery to the cigarette tdant proper. There it remains f-r a -h~rt period before it is made into cigarettes. Manufacture begins with Turkish tobacco and bright stock being blended on a con- Top: Automatic machine which removes stems jrom tobacco leaves. Bottom: Storage sheds in which hogsheads and bales of tobacco are kept front 2 to over 3 years. 13 fq T ,'K O 1 03 503 "! 7
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ve.vor. In another room, burley and Maryland tobaccos are being mixed in the same way. At thi~ point each mixture repre>ents a cr,~ss-secti,m of the tot.mcco grown in many parts of the United 5tater. while the Tur -kish represents a combina- tion fr~ma hundreds o[ areas in various Turkish tobacco-grow- ing countric's. Tim tobacco begins its passage through the "Toasting" process, a high temperature treatment that completes the proeess of curing and aging, and removes certain harsh irri- tants. During the "'toasting," " oven temperatures are carefully controlled. \Vhen the tobacco reaches the discharge end of the oven it is sub ected to further omditioning to give it the proper moisture content. During "'toasting," the irritants, driven off in the form of a vapor, rise through pipes to the roof o[ the building where they are precipitated by weak SUll~htlr c acid. They are ultinxate~y sold to manufacturers of insecticides. CLOSE CONTROL. At every stage of manufacture samples are sent to the chemical laboratoQ- for analysis to be sure at a cles~g" production is meeting specifications. If the tobacco meets these exacting standards after mixing, it goes into an air- conditi,med room to remain while certain changes occu~ ........ which further improve quality. This is known as "bulking.', It is then ready for the shredding machines, ea,'h ,'~f which is equipped with knives that nmve up and damon like a guilh> tine. A check is made at frequent intcr~als to in~ure shred~ of correct size. After shredding comes another drying fol- lowed by treatment which provides Ihe pr,)per moisture con- tent. Then comes another mixing and afterward,, the tobacco is exposed to violet rays {or a specific period, a process which further improves the tobacco. Following the violet ray treatment the tobacctJ is >t,m_'d for a short time to condition it, during which careful c,,ntrol of humidity and temperature is necessary. Operations are held to one per cent relative humidity, because even this appar. enl]y small amount is important in maintaining the proper tobacco condition. MILLIONS AN HOUR. The shredded t,,bacco is slored and again mixed, then conveyed to the manufacturln~ room where millions of cigarettes an hour are produoed auto- matically by batteries of machines. A .eirt ~q~erator, neat in 14 R l'XO'l 0350318
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white uniform, handles each machine with the assistance of a man who looks after the mechani,nl, keeps it in proper adjustment. Cigarette paper, unwound from a spool, is made into a continuous tube after the tobacco is dropped on the paper. The tube is sealed and emerges at one end of the machine to be cut up into fini.~hed cigarettes. This machine illu4rated directly above also) priuts the brand name on tile cigarette. Samples are taken from tbe machine at intervals to deter- mira? ~dwtller .-tandard dimendans and neight are being nlaiotaim:d. \Vbeu passed as ~atisfactory. the cigarettes are sent in trays to machines which automatically affix foil and lalwl armlnd 20 cigarettes, apply revenue stamps, and deliver only packages (>retaining perfect cigarettes. Any package with imperfect cigarettes is automatically ejected. Packages art" conveyml t. eell,,phane wrapping machine-; and emerge ready for girl operators ta place in cart,)t> that are delivered to them hy conveyor from the carman folding machines. An- other conveyor takes the filled cartons to a machine where they are automatically eb)sed and sealed. Finally, tile cartons are placed in containers which are shipped to cigarette distributors. EMPLOYEE RELATIONS. An unusual employee relations policy }las been instrumental in maintaining an exceptionally high mnrah.' anumg empl,~ye~--~ in the Lucky Strike plants• High wages, of o,urse, have iwiped. }{ecognition of the individual, however, llas been a p,,tent factor in estabiidling a congenial employer-employee relationship. In line with tki£ policy, brass plates on the cigarette machines are stamped with the natne:s of tile operators. Throughout the plant signs everywhere proclaim the motto: "'Quality of product ~ essential to continuing success." Lucky Strike plants maintain their o~n hn~pitals, care; terias, and 1,~ekcr r,mms. WI)rkers are examined p,'r,M~calty by a phy.qcian and a free h,spitalization plan has been in f,,rce far ",,ears. There are flo.r s~eepers almost at every turn so that the entire cigarette ])]ant is kept spick and span. .411 machinery is kept highly p,,lished -r well painted. Eveil the brass or copper fire extinguishers thr,mgh,,ut tim plant are kept po]ishe({ so they shine like mirror~-. '~ll imildings invuh'ed in ntanufacture .f cigarettes are air-c-n,titi,)ned. I.tlBiilC, ATION. Esso Marketers products are used in The American Tobacco C.mpany's cigarette plants and stem. meries. Esstie 50 is employed for air compress.r cylinders and bearings, as well as all ring-.iled eIectric nl.t.rs. Penola Ball Bearing Lubricant B protects hall and roller bearing~ on all machines, while Estan '2 is used for chain~ that are band-lubricated and ats. where grea~e eup.a are employed. ~.t)me ,f the latter, ho~ve','er, are lni,rh-atod ~, ith Castr,qeum l. In a variety (,f machines, bearings and gear- lhat are bath- lubricated are protected whh Nelmla Luhricant 13. 15 f9 ],'40 1 03 503 1 9
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baceo ~t /q ] ",'~ f~ "t r') "~ ~" r) -~ --~ ..-,
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Old pl©tor* of IndLtnt "zt ~lsntlng tem~ The sketch appeared In I book by an Mrly Fellah II~lorlr. --Czar Alexis Died white ball a fairly .long distance, I lOoked for it, and st last found it, or rJ~., pored L sai it partly hlddeJ ;n- the grass, st as I was ge ~g ready to sw ~g my club to strike it, l steppe6 -- for .it wasn't my bell at alL but the top of a mush- room! I n everyday l~ngx~age we are apt to speak of -mushroonxs"• as UNCt.t ~'~ being good to eaL and of "toads~oois~ as being poisonous. Botanists, however, class toena both together, and speak of poisonous and non-poisono~s mush- rooms. There lS al~o a third kird of mushro~,m--ne~her po]~on:,u~ not" good tn eat. , * = About 389O0 kinds of mt~shrooms a~e knuw~:. Of the~c abe, us 1.000 kiad* are t~t for food. Nature ha~ been cratty in mak- ing so man)' mu~hlooms pmsonuus. The poison in them has taught graz- ing atom•Is n~t to eat mushrooms of an:, k:nd Be~tdes the so-called "c~mmnn mtusnruom." the kmd~ which are Corn Widely Grown Indian corn, or maize• was raised by Indians in almost every part of North and South America from Southern Chile to Southern Canada. It is believed that IndiarLs of 3toxl- ¢o ua~d lo eat the ~eeds of wild - eom before they )earned to ptant ~th¢ c¢op. Then It is supposed that they raised crops, and sent seeds to nearby Lrtbes in exchange for ob- Jecis of one kind or another. In whatever way the first plant- ing was dc~e corn was raised by Indians ss far north as Maine and Ontario. Early explorers of Virginia 'toll of gout kind.~ bf corn ' the~, and the Indians around Ply- mouth had corn crops at the time of the landing of the Pilgrirrs. In both Virginia and Massachusetts It is likely that the early eothnies would have fnllrd if Indians had ,. "1 Large zooz hawe dOct~rt trained for a~ndtn we see • bear on the operating tebta. The bltLof Jagged wire which became •mbedded lis right eye. The bear feels no palr~ for to~ing chloroform, ind It Is fast aeleep, Let's up too )oonl 2. E{eohant~ •re perhap| the best patients In the to know that even If • doctor or ~entist hum them own good. In thll picture the elephant It patiently the second of his long tusks Is sawed off--an oper hurl The huge na¢ll on the feet of ole~hants R 1",'~0 "! • 03 50321
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.i ~c 4t , t CIGARETTE FIGURES A Nine-Year Record of Vohnnc by Brands; Also Advertising in Newspapers, Magazines and Radio ~IEDIA RECORDS, INC., has just released an interesting study on dgarettes. Iris a nine-vear,malxsisofsales by brands and also an analysis o[ tile expenditures made by cigarette adv,'rtisers in newspapers, magazines and for radio time, The newspaper expenditures represent the space used in newspapers published in cities of lo,ooo population and over. Approximately 75° cities are in the group checked by Media Records, Inc. The magazine figures are Ira practically all of the leading publications issued in the ,(t)lllllI'~. The radio fignlcs are expenditures for thne on the ngtthmgd I/e [.~,,,,,- i l]k-~. 1929 ....... 1930 ........ 1931 1932 ....... 1933 1934 ..... 1935 1936 1937 SALES INDEX BY YEARS (1929 as 100%) Lm,ky All Other GrandT,,ta] Camel Che,terfiehl Strike Brands Cigarettes 100.0 100.0 100.0 100.0 100.0 95.0 96.2 117.0 84.3 100.5 82.5 94.6 122.5 67.5 95.4 61.5 80.8 101,6 126.5 87.1 66.3 111.5 103,{1 113.3 93,9 80,0 128.8 92.0 160.2 103.5 92.5 138.5 89.3 175.3 1t3.t 107.5 1-t6.2 101.6 215.1 129.2 112.5 146.2 105.8 250.6 137.1 1929 1930 1931 1932 1933 193-1 1935 1936 1937 Sales of Cigarettes itt Billions I,ucky All Other Grand T-tal Camel Che,terfiehl Slrike Brand~ Ci;mretle- .R) Billi,,n 26 Bi}Ji,,n 36 Billi~m 17 Billion 119 Biilinn 38 "" 25 ,13 14 120 33 "" 25 "" 15 11 '" 114 25 21 37 21 104 26 29 38 t 9 t 12 32 33 3-1 " 27 '" 126 37 $6 :;3 " 29 '" 135 ,13 38 37 36 13 t5 " 38 38 42 163 " 192') l 9~t) 1931 ] t;32 1933 193 ; 1935 1936 1937 PRINTER',' INK Total .~.d,,rerti~ing i.941.697 5 5.25:3.71 ~ .3 6..58,q,933 87.021.801 .S2iL~'mO.2:;5 L812.7!0 3:;63. t22 10.0','1,92o 5.142.It09 26,(;!~3,~Jgl 10.006,02~ %5 9L~)36 13.649,?~63 .5,210.70! 37.7,~6,1~2 2.1;~d9.1),5~ ~ 1. Z::',& !~6 1{I,850.39.. l.t*;;t.2IS 2g. {61 ,f3FM Iu.217..2:', 7.Z.aLla ~ 7.192.391 2. I I/~.:', 17 27.;70.615 10.381.761 %575.S'}:; 8.120.166 :;.5;;2,.5,}7 31.66t,217 9.264,983 '9. ~43. 147, 5.587,997 1.91 ').~,;', ~ 2%21 ~.107 9.0.1.1.999 :3.0n8.86:~ 6.8436-',23 7/~73.273 32,171,960 8.529.010 3.947,936 5.~}6.923 7.!~0.'}:',,5 2',!L75.4.3,54
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Camel 1929 ....... $i,174,397 1930 ........ 3.570.702 1931 ....... 7,331,918 1932 ........ 116.137 1933 ....... 8,055,079 1934 ....... 7,013,654 1935 ....... 6.320,582 1936 ........ 5,712,297 1937 ....... 5,237,100 Lucky All Other Grand Total Chesterfield Strike I~lrands Cigarettes Newspaper Advertising $4,598,344 $ 5,375,762 $5,392,303 $16,540,806 5,095,272 8.044.110 3.350,042 20,060,126 7,977,126 10.880.566 3,138,060 29,327,670 8,613,537 7,897,355 2,729,233 19,356,262 6,494,671 5,777,727 759,118 21,086,595 7,782,273 7,037,673 2,185,762 24,019,362 7,916,477 3,443,772 3,317,781 20,998,612 6,878,072 4.290,052 6,,t35,077 23,315,498 6,015,075 2.I-t4.175 5,578,650 18,975,000 3Iagazine Advertising 1929 ....... $ 767,300 $ 655,400 $ 740,299 $1,023,430 $3,186,429 1930 ........ 1,075,575 873,150 1,208,790 1,140,450 4,297,965 1931 ........ 1,428,770 1,152,960 1,118,720 626,062 4,326,512 t932 ........ 1.535,400 778,225 1,101,846 694,147 4,109,618 I933 ........ 2,126,550 44t,730 717,486 770,254 4,056,020 1934 ....... 2.680,910 652,660 765234 951,502 5,050,306 1935 ........ 2,172,165 797,519 1,610,193 1,063,170 5,643,047 1936 ....... 2,373.553 934,981 1,047,069 702,037 5,059,640 1937 ........ 2.501,595 1,610,364 1,258,252 588.968 5,959,179 Radio Time Value 1929 ....... $ ...... $ ...... $ 472,872 $ 606,128 $1,079,000 1930 ........ 166,463 ...... 842.020 651,517 1,660,000 1931 ....... 1.245,336 1,650.082 1,446.582 4,342,000 1932 ..... 737,517 1,7"46",424 1,851.194 660,865 4,996,000 1933 ...... 66,094 653,783 697,178 910,945 2,328,000 1934 ...... 687,197 1,140,460 317,559 446,333 2,591,549 1935 ........ 772,236 729,447 534,032 538,733 2,574,448 1936 ...... 954,149 1,095,810 1,508,704, 538,159 4,096,822 1937 ....... 790,315 1,322,547 2,214.496 1,493,317 5,820,675 Sales by Brand--Advertising Expenditure by Brand, by Medium Sales of Cigarettes--Per Cent of Field Lucky All Other Grand Total Camel Chesterfield Strike Brands Cigarettes 1929 ....... 33.6 21.8 3o.6 14.0 100 1930 ......... 31.8 20.9 35.6 ll.7 100 1931 ........ 29.1 21.7 39.3 9.9 100 1932 ..... 23.7 20.3 35.7 20.3 100 1933 ....... 23.7 25.9 33.5 16.9 100 1934 ........ 25.5 26.7 26.7 21.1 100 1935 ............ 26.7 24.1 21.7 100 1936 ......... 28.0 24.7 24.1 232 100 1937 ......... 27.6 23.3 23.6 25.5 100 1929 [930 1931 1932 1933 :934 ..... 1935 ....... 1936 ..... 1937 Total Advertising--Per Cent of Field 9.3 25.3 31.7 33.7 100 !8.5 22.9 38.8 19.8 i00 26.3 24.:/ 35.9 :3.8 lt:~0 3.4 39.1 38.1 1 ~.-1- hO 37.3 27.6 26.2 ,3.9 I0O 32.8 30.2 25.6 11.-1, :~30 31,7 32.3 19.1 t6.9 I00 27.8 27.4 21.1 23.7 100 27.7 29.1 18.3 24.9 100 56 PRINTER~" INK for ll,l~ ~6. 1938
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""t c~ 9
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Pt-rcentage ot Sale, Fiehl New,paper~ Magazine,~ I+UCKY STRIKE Radio T,~tal 1929 ........ 30.6 81.6 11.2 7.2 100 1930 ....... 35.6 79.7 12.(3 8.3 100 1931 39,3 79.7 8.2 12.1 100 1932 35.7 72.8 10.2 17.0 100 1933 ....... 33.5 80.3 10.0 9.7 100 1934 ...... 26.7 86.7 9.4 3.9 100 1935 ...... 24.1 61.6 28.8 9.6 100 1936 ....... 21.1 62.7 24.4 12.9 100 1937 ......... 23.6 38.2 22.4 :',9 A- lt)0 ALL OTIIER BRANDS 1929 ..... 14,0 76.8 14.6 8.6 100 1930 ..... 11.7 65.2 '2'2.2 l 2.6 1 O0 1931 ...... 9.9 60.2 12.0 27.8 100 1932 20.3 66.° 17.0 16.2 li)O 1933 .... 16.9 31.1 31.6 37.3 100 1934 ....... "21.'2 61.0 26.6 12.4 lit0 1935 ........ 21.7 67.4 21.6 11.0 100 1036 ..... 23.2 83.8 9.1 7.1 100 1937 ...... 25.5 72.8 7.7 19.5 ltu~ GRAND TOTAL CIGARETTES 1929 ......... 100 79,5 15.3 5.2 100 1930 ........ 100 77.1 t6.5 6.4 ]rio 1931 + lOO 77.2 11.1, l 1. [, 100 1932 ..... 1u0 65.7 1 ?,.9 20. !. 100 1933 .......... hi0 76#, 1-t.8 8.4 l()l} 1934 ......... l~t 75.'.+ 16.0 8.l 10t) 1935 I t}o 71.9 19.3 8.8 l ~)l) 1936 ....... 100 71.8 15.6 12.0 100 1937 ...... 100 61.7 19.4 18.9 10¢) A IIINT FRO)I AUSTRALIA FRO,X[ New Somh Wales. Austral/a, comes a formula for ",tuctcssftll politi- tal adxerti,in~ that Frank (;ohibel'.,q of S`'dnex, ti~inks might interest u,. "~%'hat ~e !!li£}~t ¢;tll ¢nt}ltlt[ox a~l- `'t.'rti";01~ illet}twd:~." urites Ibis corte- ~])()lltiellt 11(1111 tile antipodes. "had ne~er been appiicd to political adxcr- rising until it '.~,is u,;ed by the I'nitcd Australia Part~ in 19.35. Prior m that political atL`'e~ri,ing was iand that ,t dte opposition P:itt~ still is> o1 a c'ludc 3lid 'lIl[l([ '~][H~i:l~" :lature. \Ve, how- et, er, ]llaill [a] itt'd all attii Ill aI i~, e ~lOte ti.,o]tt through, ,,ticking strictly to I[~¢_' past addexetnents and Ihe futule guarantees which our Party had to of. ler. and avoiding art'. direct attack on tile shortcotnillg'~ ol: our o|)ponetlt,s, ltl other words, ~e h:t`'e ftdlm~cd p~e- cF, elv the same principles a'.; ue x~uld ordinarily follow in the ca',e of [)lc~d- mt ad`"er tisixt~. "'The foI'llltlla Ilan been u,~¢d II,.u,~ f,tr {n t',~o t"ederai alltt {~,t-t) Smite ¢:lcrtti~m,. In exerv election, the camlzli,.c,u h:l- been o~e~whehningly successful :rod Cw Piutv has scarcely ],)st a ,eat i~ i~at period. This is all the more re- malkable in that .\wqralia is Imt,btt- ,m-,]y givetl to change its Go`'ct umttmt:,." lbere is one featule ¢)1 the ad\er ~!,[u~ the Part`" has used that Nit. (;o},[bt:rg thinks :,igntiticanm .\,L~c~ ti,eunents have generall) tt,,ed "+nhol copy" attd it has been defittitelv e',tah lished that short copy does pull t~ette: in political advertising--although thi-; :tile, lie adds, does Iio[ llleaII that -;tit)It ,+<q,~ is best for :ill kinds of adxclti.dn~. 5~ PRINTERS' INK for .lla.u ~6, I93"1 "1/. R ] 0 1 0350330
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i - /iiiii~i~i Publlsbed by VIRGINIA STATE CHAMBER OF COMMERCE RICHMOND !ii!i ~ii!!iiiii~ i~~ ~ T ~,qO "1 035033"1
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0 g BY ROY C. FLANNAGAN, Author and staff political com- mentator, The Richmond News Leader, Richmond VIRGINIA m ii IiiI ItF.I~II'/~I Q A reprint from The Richmond N~z~s Leader Published for free distribution by ~HE VIRGINIA STATE CHAMBER OF COMMERCE RICHMOND q
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Reprinted by Special Permission o/ Copyright Holder The Richmond News Leader ('oral, any i iiiiiiiilziiiiiill f31,,,O'l 0350333
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VIRGINIA TOBACCO ~I~N THE excitement which at- tended the opening of the bright tobacco markets, in the autumn of 1937 this correspon- dent was surprised at the large number of Virginians who wanted to know more about their richest cash crop and the industry which for nearly three centuries has been supreme fn the Old Dominion. Many farmers who raise tobacco do not know what happens to it after it passes under the thumb of the auctioneer. Not a few manu- facturers are blind to the agricul- tural end of their business. In between these pillars of the State's great industry, the public wanders, curious about both. Farmers, processors and smokers, however, have one thing in com- mon. All of them are fascinated by the fragrant stuff. The men who handle it, particularly, love tobacco. They treat it with gentleness, re- spect and devotion because at every stage along the line the tempera- mental substance demands of them the closest attention. Whether alive in the field or lying dried on a con- veyor belt, tobacco challenges the genius and individuality of every person who touches it on the way from seed to cigarette. Raised in Virginia. The lea2 which largely is re- sponsible for the popularity of Virginia-made cigarettes Is raised in Virginia just a few miles south of the big factories. This is Vir- ginia, or bright tobacco. A variety of the original Orinoko which has been the mainstay of the industry since John Rolfe, the first big tobacco planter, began to export his leaf from Jamestown 300 years ago, the bright type was developed on the light, loamy soil of Southern Virginia and :Northern North Carolina shortly before the War Between the States. Its su- preme suitability for cigarettes was discovered very quickly, and dur- ing the seventies bright tobacco was in such great demand in the world market that thousands of Virginia growers began to concen- trate upon it exclusively. Today three*fourths of Virginia's farm in- come from tobacco comes from this type. This leaf grows best in Southern Virginia and in Eastern and Mid- dle North Carolina, though some is produced in South Carolina and Georgia, where it was introduced after the boll weevil began to de- stroy cotton. It requires considerable skill in cultivation. A farmer must give it more attention than any other crop. Unskilled tenants, no matter how intelligent, rarely can raise leaf that will bring a price above the cost of production. Tobacco is subjected not only to the regular hazards of agriculture, but it is a crop that can be ruined past re- demption by a few moments of in- attention or carelessness. The tiny seed are planted early in the spring in beds which gen- erally are located in "new ground" --a cleared space in a thin patch of woods. These beds are covered with cheesecloth to protect the plants from cool weather and too much sun. At this stage the first hazard is encountered--blue mold. The fun- goid disease, especially prevalent last spring, comes with damp weather, and it often wrecks alt the seedlings in a county at the same time. It is particularly em- barrassing because it sometir~e~ cannot be diagnosed until it is too ;,% ~ iiiiiiiiiii~iiii!iii!iiiii ........ T,' O 1 0250334.
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6 VIRGINIA TOBACCO late to find new plants on the market. By the time the danger of frost is past, the tobacco seedlings are sev- eral inches high and ready for trans- planting. The farmer takes them gently from the bed, a few at a time, and using a sharpened stick punches holes along the widely spaced rows at inter- vals, and "sets" them. Each is watched carefully for several days until its long roots take firm hold upon the soil. Those which die are replaced until the whole field is uniformly covered. Thereafter until midsummer the plants are cultivated somewhat like corn. If they are on good, ade- quately fertilized soil, if weeds and grass are kept down, and there is enough rainfall, they grow rapidly. In August they are flourishing in the hot sun, and their broad leaves, axe so large that the grass between the rows can be cleared away only by careful work with a hoe. The plants thrive in dry weather be- cause of their long tap roots. At this stage the grower not only must keep up his routine fight with weeds and grass, but he must "top" the tobacco so that tt will broaden out and produce leaves of the proper body. If he tops un- skillfully, his tobacco will be of poor quality. A heavy, fibrous leaf is as bad as a light, undernourished one. Wars Against Pests. In August, too, he must .pull off the "suckers"--sprouts sent out by the topped plants--and he must watch out for a very active pest, the tobacco worm. These moth lar~,ae--most gardeners know them as tomato worms--grow almost as large as a cigar, great green things which can cut a plant to shreds in one night. Some growers raise a flock of turkeys to help them keep the pests under control. Most, however, worm their plants themselves with the aid cf the children of the neighborhood. It is an unpleasant, but very necessary task for the I:}ants are in danger from July on- ward. In August the beautiful plants begin to ripen. The few which are left untopped so they will produce ~eed for next year's planting, now are six feet tall and in flower. The others, if there has not been too much wet weather, are growing in lush, orderly magnificence. It is time now to "prime" the plonts--to pull the first leaves of the harvest and to make ready for curing the crop, Once bright to- bacco was cut all at once, the whole stalk. Today it ts gathered leaf by leaf as the foliage reaches the proper stage. Th~ new method yields m o r e properly matured leaves per plant and is worth the extra trouble. With the first barn full of prim- ings comes one of the most sus- pense-laden events of the long, ex- citing pathway between seed and cigarette. A planter does not "grm~#, to- bacco, he "makes" it, and the busi- ness of making it includes not only the cultivation but the curing. No process given the leaf subsequent- ly by the manufacturers is any more delicate than this. A man may have raised tons of fine to- bacco, but if he does not cure it properly, the crop can be a total loss. To cure tobacco is to dry the leaves so that their quality and, in the case of bright tobacco, thmr color, is fixed. i i " 2¸¸:¸ :• .,' ,~:zzr~4~.7.;~:. ' ~.?..{ .... L.. ," r:7 111 r ,:'.O.. "1 035;0335
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Of the four maior types which go into the more popular American cigarettes, Bright. Burley, Mary- land, and Turkish (or Smyrna) bright alone is prepared for mar- ket by the dlmcult and complicated flue-curing method. Burley, the rich brown tobacco which is pro- duced in Southwest Virginia, west- ern Carolina, Tennessee and Ken- tucky, is dried by natural air in shelters. Maryland, black, dirty- looking, yet richly flavored, also is air-cured. Turkish, light colored, with leaves not much larger than those of a hickory tree, is strung on strin~ and dried in the sun. Curing Begins With Rush. The flue-curing of bright tobacco begins with a rush as soon as the "primings," the first leaves, are "pulled" from the growing plants. The miniature factory in which this process takes place is the to- bacco barn--a tightly chinked, but ventilated and well roofed building, about twenty feet square and twenty feet high generally con- structed of peeled logs. The larger plantations have dozens of these structures lined up in rows along the trails or the highway not far from the fields. Each barn is equipped with one or more fireplaces fed from out- side the building, and each fire- place or kiln is equipped with a network of pipes or flues which cross through the interior of the structure and emerge on the other side. Heat from these tin pipes dries or cures the tobacco. For days before the harvest these barns have been receiving atten- tion. Chinks have been sealed up tightly wi]r_h piaster or mud. The firep]aces have been overhauled, the network of pipe~ has been checked and repaired; the ventila- tors have been tested; the roof ex- amined for possible leaks. A great pile of wood--at least two cords to the barn in long poles--is ready. Heat Reaches Every Leaf. The freshly picked leaves now are hauled to the barn. Just enough have been pulled to fill it. The tobacco is hung upon sticks and the sticks are laid across poles in the log hut. It must be strung so that heat will reach every leaf evenly and steadily. Great care is taken so that the barn will not be overcrowded. A final inspection is made, tested thermom- eters are placed so that the tem- perature can be watched, and the barn is closed. A fire--a slow and not very hot fire--now is lit in the kilns on the side of the building. As the flues inside begin to heat up, and the temperature rises, the fires are closely supervised, for the heat at the beginning should not be much more than twenty degrees above the average temperature outside. For thirty to forty-eight hours the fires are kept at the low level, and the heat down. Each indi- vidual farmer has his own idea about this stage of curing, the pur- pose of which is to bring the leaves to a bright yellow color. As they become yellower and yellower, the temperature is slow- ly raised. One popular formula-- varied according to the appearance of the leaf and the temperature and humidity outside--calls for an increase of five degrees each hour until the air inside registers about 115 degrees. The tobacco begins to curl and dry at an accelerated pace. The .~ .i~ .~v~'- "~,~ /, it" "~k~, ,'i ~ ;, ~:_.a~.,-- -- ,i,~,~-~- " iii ZI~I x
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8 VIRGINIA TOBACCO doors and ventilators at the top and bottom of the barn now are opened so that the damp, sap-laden air can pass out. The fires are built up to compensate for the extra ventila- tion. Despite the added heat, from sLxteen to eigliteen hours are re- quired in normal weather for the leaves to dry. This is not all. The woodpile now is low, and the man who has been feeding the fires and watch° ing the cure day and night is weary as well as anxious, but a very vital task still is ahead. The thick, fibrous stems of the leaves are not yet completely dry. Unless they, along with the remainder of the leaf are drained of every mole- cule of moisture, the leaf tissue will "scald" or become discolored by a backflow of sap from the stems. So up goes the temperature con- siderably higher. Sparks fly and there is a glow in the sky over the barn. She must hit 170 to 185 de- grees, and hold it until those stems are cured. Sometimes this takes 16 more hours of firing. It is no time now for the barn-tender to go to sleep. He may be keeping three or four kilns going at the same time. He may be so sleepy that he hardly knows what he is doing, but without a final sprint, all his work will be useless. Man at Barn Alert. Quite frequently an all-night barn part)" is staged to keep the firemen awake, and to celebrate the final curing. Sweet potatoes are roasted in the embers beneath the kilns. Cider flows, and if the night is cool, a bonfire is built out of the surplus wood. Songs are sung, stories told. No matter how gay the festivities, however, the man who is watching the barn mus~ remain sober and alert. As the merrymakers troop home through the chill dawn light, he ducks into the superheated barn to test the stems, to sniff the air. Sometimes he must wait until noon or late afternoon before, satisfied, he can permit the fires to die down. At last, though, his vigil is over. :Every leaf, stem and all, is as dry as tinder. He lets the fire go out, careful now lest the very dry stuff Inside should Ignite. As the barn cools, the outside air flows in and the tobacco absorbs atmospheric moisture, becomes soft and pliable. It will keep now, al- most indefinitely. The watchman can go home now, and take a nap. Later he returns, takes down the sticks, sorts the yellow leaves, and ties them up into "hands" or "bun- dles"--little tufts of half a dozen leaves. Ths tobacco remains in this form and condition until it goes through the sales warehouse re- drying plant and storage warehouse to the factory. Sorting Is Important. The sorting or grading of the tobacco is a vitally important part of the planter's work. lie begins this task at the barn or at his storage house and finishes it later at the sales warehouse. Upon his skill depends to a large extent the price he will obtain for his prod- uct. A man who knows his tobacco takes infinite pains to separate the "cure" into small lots of approxi- mately the same quality and color, If through carelessness he should mix some low g-fade "hands" in with a fifty-pound lot of good leaf, the price of the whole lot will be dragged down. e::i>\ • o j='~- ~"x,. ~- ~z- .ali-~tv..,, ~, -! i' ? ., .| s/'/~ll. ¸!¸¸77¸;¸ :L 7 ~lt, f91,~01 035033P
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Frequently they sell it grade by grade, a few hundred pounds at a time over a period of three months. Only rarely are barns robbed. There is such an intimate connection be- tween the growers and buyers of leaf that a barn or packing house thief generally is detected as soon as he tries to sell the stolen goods. The tobacco sales at the opening of the auction season in the Old Belt markets of Virginia are extra- ordinarily exciting because of the manner in which they are staged and the uncertainties of every transaction. Planters do not know what their leaf is going to bring. Buyers do not know what quality of tobacco will be offered, or how much. Warehousemen do not know the volume. Merchants in the various com- munities, with supplies of goods for the farmers, are anxious for fear they have overstocked. Long before daylight on opening day the growezs troop into town, hauling their leaf in trucks, private cars, or wagons. Each generally has his favorite market town and his favorite warehouse, but many "shop around." Motor vehicles have given the sellers a mobility that en- ables them to shift quickly from one market place to another, so there is very warm competition be- tween towns, and in each com- munity, between warehouses. Some of the proprietors of warehouses stand outside thelr doors like circus barkers in the dawn light, hailing farmers and inviting them in. Unloading Place Allotted. Having chosen his warehouse, the plan:er drives through one of the big doors and across the wide stout floor to an allotted unloading place. Here he is furnished with wide fiat baskets of split oak, and here he gives his lot a final sorting. Twenty or more baskets sometimes are used for a 1,000-pound load, for it is very important to divide the to- bacco into exact grades, basket by basket. One may contain 36 pounds, another 95, but the "hands" of leaf on each are of essentially the same general condition and color. Here again, a man's knowl- edge of tobacco counts heavily. As the baskets are packed, they are placed on big hand-trucks and wheeled over to the scales. At the scales is a little of~ce in which the warehouse clerks record the weight and give the seller an identification ticket for each basket. It bears his name and the quantity. The ticketed baskets then are moved over and arranged in line, along with hundreds of others, on the floor of the warehouse. A narrow walkway is left between rows of baskets. Next morning the big, well lighted place is thronged with peo- ple. Neither the crew nor the farmers have had much rest the night before, but suspense makes them forget their weariness. The buyers arrive, th., auctioneer comes, quiet falls for a moment, followed by a great flutter and a milling around of the spectators. A bell rings, and there is a whoop which sounds llke the Rebel yell. Buyers Line Up. The buyers line up at the end of an outside row, the first row formed the night before. There are from six to a dozen of these men. They represent the big manu- facturing firms, exporters, an d brokers. Often, too, there are sev- eral speculators. .-~£ost have studied the tobacco piles in advance and X, ~_~.~\~--gl ~: ~_..~]~'."~. ~.'TTA~,.'--~'. . _~I,...~,l~#~'.~" -- i f i!!!!!!i!i!~i! . 03S033 q
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know about what they want and the rates they can afford to bid. Their companies have given them allotments and price ranges. Each buyer is interested generally in a few pa~icular grades and he knows :hose grades very well in- deed. "Pow:" the auctioneer slaps his hands together and points to the lgrst basket. The sale starts. '"Ten:entententen, twelve, fifteen --fifteen, fifteen, fifteen, fifteen. Eighteen she is, and do I hear twenty? Twenty! twenty-one! One- oneoneoneoneone. Two ? Three. Twenty-._hree . . ." Pow! He has rattled off the bids in an incredibly short time, The buyers have said nothing, yet five of them have made offers. Each has a si=~nal which the auctioneer catches as he moves along. He moves briskty, too. Rarely does he stop at the basket which is being sold. for that particular transaction is completed before he walks four steps. Ac the end of the double line of buyers, who constantly reaching over and finger the contents of the baskets, is the warehouseman, who waves a bundle of tobacco as each lot is sold_ Owner Is Near By. The farmer who owns the leaf generally is at one elbow of the warehouseman, and at the other is a clerk, wao writes the bid and the name of ~e buyer on each ticket and drops the ticket on the basket Behind comes another who records the purchases -- men with brains like adding machines who rarely make an error, By now :he sale has progressed many yards along the row. From a distance the auctioneer's voice seems to d=ene, occasionally reach- ing a falsetto pitch, sometimes breaking into a chatter. He alone seems to have space enough in which to walk erect. The others in the buying party struggle along as best they may, sweating, stooping to examine and feel the tobacco, scrambling over baskets, ducking under each others arms. A Negro boy is dancing in an ad- joining aisle, a girl thrilled, cries: %Vhee, ain't it swell?" On one of the baskets which has been sold, a farmer with a beard two feet long has fallen sound asleep, oblivious to the noise, heat and dust. Other tired ones sit on other baskets, chewing tobacco which they tear from the freshly cured leaves, spit- ling between their feet, and dis- cussing the opening prices. ~Iany of the farmers are Negroes. Some wear worn overalls. Others are dressed like ordinary business men. One merchant told me: "Since prices improved, I can't tell a farm- er from anybody else." Growers Know Worth. The growers now know how much their tobacco is worth. If they do not like the prices quoted they "tuck their tickets" -- withdraw theh tobacco and sell it later at the same place or carry it else- where. If satisfied, they cash their slips at the warehouse office. The warehouse deducts a small commis- sion on each sate. The baskets which have been sold now are hauled away to the "prize room" where each buyer's purchases are packed or pressed (prized) into hogsheads. Each big barrel contains between 800 and 1.000 pounds. It is shipped imme- diately to the firm which has bought it. Several warehouses sometimes use the same packing facilities. i7¸ e- £~ ¢ ~q/." .Nv-~i,,,' ~. _~t.x" "2~2..{k~"i~ ,,~V:';;" ~, '; ~ ~.~'~ *"" !, i; b]r l,qO '1 0350339
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VI RGINI:k TOBACC© It ~£uch of the tobacco sold goes to American cigarette factories in Richmond and elsewhere for re- drying, conditioning and storage. A large quantity goes to re-drying plants and private warehouses. thence abroad to England, France, Germany and Japan. The lower grades that are unfit for the cheap- est smoking mixtures, are used for insecticides or other chemical prod- ucLs. A portion of each day's offering generally is bought by speculators --the "pinhookers" so despised by the farmers--and frequently ti~ese men, after re-sorting the tobacco, offer it for sale the next day in the same warehouse at a profit some- times of $5 to $10 per 100 pounds. The speculators make--or lose-- money on sudden shifts of demand from day to day or week to week, or upon the careless grading of certain baskets. A farmer who is not completely familiar with the various grades often has to stand by and bite his knuckles while a speculator buys up his lot, shifts it around to fresh trays, and sells it at a much higher price. Removal of a dozen "hands" of "mean" to- bacco sometimes improves the bid on a basket several cents a pound. Within the past ten years Vir- ginia's bright tobacco counties have almost completely abandoned the single-crop system. Large planta- tions have been t~roken up into small, self-contained farms which produce, live stock, hay, cotton, cereals, fruit and other products in addition to tobacco--the very best tobacco. This diversification pro- gram has developed with an almost unbelievable celerity, and is lifting the face of the whole section. Anyone who thinks farmers are slow to change need only compare the Mecklenburg or Halifax farms of today with those of 1925, when it was hard to find a cow in a long day's ride. Try Out Fuel Oil Heaters. Call them old-fashioned if you like, but some now are trying out fuel oil heaters in curing their to- bacco. The things cost $125, and I was told, they cure a barn by ther- mostatic control for about $8, If these gadgets improve the quaI£ty of average tobacco, it will not be long before large curing plants will be built in the C)id Belt settlements, for a farmer with a small truck can carry his green leaf to town for curing in just about the time it once took him to haul it across a big field. Yes, despite problems of a ma- chine age, the planter is alert, and he loves tobacco with a passion. Just a few years ago, an ordinary smoke would knock a strong In- dian's head off. Today cigarettes are smooth and sweet. He takes pride in this. and he is anxious to help make them even smoother. Also he is proud of the fine name which he and the manufacturers have made for Virginia tobacco the world over. Cigarette tobacco is handled gen- tly enough on the farms and in the sales warehouses, but when it reaches Richmond's factories it is treated with even greater loving kindness. No private tobacconis~ in olden times ever gave his prod- uct more scrupulous or expensive care than do the giant corporations which process it. Moving along the trail between seed and cigarette, I traced a ship- ment of Virginia bright leaf to the Virginia branch of the American Tobacco Company here. This firm. organized in Richmond, was among the first in the world to apply -:° ~ .~--'~v~.~-cW~x¢?~ /" .... :. ~ ....... . - - :: :ii¸ L=III ,~¢ 0 1 0 3 ~ 0 3 4. 0
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mass-production techniques to the most delicate tobacco of all. Cigarettes were not invented in Richmond. The first man who used paper as a wrapper probably lived in Turkey, for Turkish officers taught Frenchmen and Englishmen to roll their own during the Cri- mean War, and it was just after this that this kind of cigar (as it then was called) became popular in Paris and London. The first modern cigarettes, how- ever, were produced in Richmond during the early seventies by Allen & Ginter. Smokers soon discovered that Virginia tobacco made better cigarettes than other kinds. The growth of the business was astro- nomical, and the end is not yet in sight. Production.here last year, by all factories, totaled 84,700,000, 000 cigarettes! Visits Plant. C. 1~ Gibson, manager of the Virginia branch of the American, kindly volunteered to pilot me through its tremendous, unhurried yet amazingly efficient plant. It is considered typical of other fac- tories here and elsewhere. The most surprising thing was that for all the machinery and orderliness of modern manufacturing tech- nique, the place gives the same impression as a private tobaccon- ist's workshop. The magic spirit of tobacco which has demanded so much devotion of everyone who has handled the leaf since it was smoked in the first peace council in the New World, hovers over every process. Even the machines seem to treat r~e golden substance with reverence. ~[r. Gibson took me first to the re-drying uvAt adjoining the big storage warehouses on the Peters- burg Pike and, following the straight line of production, we ended in the great buildings at Twenty-sixth and Cary where Lucky Strikes are made. Luck,ca are, of course, different from other popular brands in blend and proc- ess, but, I was informed, all use somewhat similar types of leaf and employ the same kind of machin- ery in the ordinary steps of manu- facture. Traces Leaf. The tobacco enters Richmond only a day or so after it is pur- chased at auction. Unloaded at the re-drying plant it is taken out of the hogsheads, and sent up to the upper floor in big cylindrical cakes. A crew of busy women take these cakes apart and hang the in- dividual "hands" on the same kind of tobacco sticks used in the cur- ing barns on the farms. These sticks are mounted on conveyors which haul them slowly through a long steam-heated box known as a drying machine. In one end of this box, the temperature is up to about 200 degrees, and the tobacco is completely dried. As it passes on to the other end, humidi- fiers squirt a mixture of steam and water around it, and so a meas- ured amount of moisture is added. This drying-remoistening process standardizes the condition of the tobacco. If the leaf were stored without treatment all of it would spoil, due to the excessive moisture at the time of its purchase. As the tobacco comes out of the long box, the "hands" are pulled from the sticks by a group of expert packers, who stuff it back into the same kind of hogsheads in which it came. :Members of the bull-gang-- the strong men who roll the hoga- head around--then move the re- x J .... - " t, i: ]" ,'.q O 'l 03GOgd-l
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packed containers over to the storage sheds. In these wide-open sheds the hogsheads of tobacco remain for not less than two years, sometimes for much longer. The air of sum- mer and winter plays upon the porous wooden containers and the leaf undergoes a gradual chemical change. It is very, very costly to keep millions of dollars worth of tobacco ly~g idle for years but no process kms been discovered that can dupEcate the treatment of Father Ti.me. Is Stemmed. As new tobacco is rolled into storage, matured leaf is rolled out into the stemming rooms. This is unpacked and inspected carefully. At this stage the manufacturer be- gins the blending process. Hogs- heads of various kinds of bright leaf are chosen and lined up in rows and unpacked simultaneously. Virginia and North Carolina Old Belt, New Belt, Eastern l~orth Carolina, South Carolina and Geor- gia tobacco---it all looks alike to the layman--axe merged in proper proportion on the conveyor belt which moves toward the stemming machines. These machines, each manned by eighteen operators, pickers and in- spectors, cu: the "hands" of tobacco apart and pull from each leaf the tough, middle stem. Leaves with broken backs must be picked out and stemmed by hand. Despite the watchfulness of the many workers, not a few stems get past. All through r~e factory workers con- stantly watch for stems. The search slows down the processing of to- bacco a great deal, and gives era° ployment to many nimble-fingered workers. ~-o local stemmeries now feed the Lucky Strike plant. One is next door to the main factory at Twenty-sixth and Caxy and the other is the new one in South Rich- mond. Second Blending. As the tobacco comes into the main factory the second blending takes place immediately. The Bright ----or Virginia--is spread upon a conveyor and wedded to a meas- ured mixture of Turkish--the tiny- leaved tobacco from the Near East. In an adjoining room, meanwhile, two other ingredients are being married--Burley from Southwest- ern Virginia, Kentucky and Ten- nessee, and a type known as Mary- land, a daxk-colored leaf from above the Potomac. At this stage the Bright tobacco is representative of every kind of flue-cured leaf grown between Pe- tersburg and the Florida line, the Burley and the Maryland also axe typical of entire production areas, and the Turkish is a combination of leaves from 550 Levantine vil- lages. Only by using tobacco con- sisting of samples from several seasons and many sections can a safe standard be maintained. We now have four major types of tobacco ready to receive this special treatment that gives the modern cigarette so much flavor, smoothness and body. Mixed to- gether very carefully, the tobacco is treated first just before it goes into long boxes to be given the fa- mous "toasting." Other cigarette blends are proc- essed with heat, but I was in- formed that Lucky Strike tobacco literally is toasted. Visitors who pass through this part of the fac- tory are toasted a bit also because the great room, empty save for the 71;ilii!!7 ii • < , f !1!11111:!1171!111 Pt1",40 "103S034.2
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furnaces with their grim-looking dims, is very hot. After the heating the tobacco again is moistened by steam as it passes on to its next blending. By-products driven from the tobacco by the furnace arc saved and sold. Mixing Takes Place. The new mixing takes place in giant copper drums. Here the basic blending of the unshredded, stemmed leaves is completed, M- though the mingling of the tobaccos continues further all the way to the very last stage of manufacture. The most skilled hands in the world probably could not mix the tobac- co as painstakingly as do the ma- chines in a modern cigarette fac- tory. Chemists from the big re- search laboratory of the plant meanwhile watch it constantly. In dozens of out-of-the-way corners are men with strange instruments measuring moisture and studying the product as it moves slowly along the conveyors. Alter the tobacco comes out of the burnished drums it is "bulked" --piled together--and left in an alr-conditioned room for twenty- four to twenty-slx hours. This "bulking" is another mystery of the tobacco business. Unless it is done the ultimate product does not taste as it should. Nobody knows exactly why because the chemical change is so subtle, but it is as- sumed that the essential oils of the different leaves somehow get together better during those hours of rest. From the "bulking'' chamber the leaf now goes to the shredding machines, where it is cut to the consistency you see it in the aver- age cigarette. In this room the mixture also is dried out slightly. Thereupon it passes through an- other copper drum the interior of which is equipped with two bat- teries of arc lamps, the brilliant glow from which may be viewed only through a mask. This is the violet ray machine. The rays bring about another mysterious change in the tobacco which now irradi- ated, is purified and prepared ready for a final touch of flavoring. Leaves h Shredded. This last seasoning process leaves the shredded mixture ready for its final rest before manufacture into cigarettes. It is placed in boxes called "Saratogas," and left in an air-conditioned room for from four to eight days. The regulated, care- fully controlled air takes off ex- cess flavoring and once again helps blend together the various fragrant oils of the tobaccos. Coming out of this resting room, the tobacco is placed upon a cir- cular conveyor which looks like a merry-go-round, and here it is mixed again. Samples from every Saratoga are placed in other bins--- small movable boxes called "trol- leys." By now every single pinch of tobacco contains a bit of Bright a bit of Turkish, some Maryland and some Burley, each in proper proportion. The shredded brown mixture moves on into the four rooms wherein 10,000,000 cigarettes an hour are being turned out of great batteries of machines. The cigarette-making machines resemble somewhat a giant upright piano. On the keyboard side is cL young lady, the catcher, who tares the white tubes as they emerge and place them in a rack at about the position her music sheets should be. The tune which comes out of , ,/~N~ .,,,,,...~,~#~'-"" [ ili~ ~ii:ii~ ii :ii ii iii~ : ....... i~i!ii! ii i~i f-~ T,'~O ~035034.3
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VIRGINIA TOBACCO 15 the thing hardly can be called har- monious, however. There is quite a clatter inside. Mr. Gibson lifted the lids. A "trolley" of tobacco was being churned around at a great rate by some little paddle-wheels. Bits of the fragrant stuff flew out when he opened a side door. He ex- plained that at the machine, bits of stem still were being eliminated. The churn flung the heavier pieces, into a waste bin, the fluffy, shredded leaf fell down to the bet- tom. Printing Press. I noticed then that a big roll of paper was being fed from a spool down through an intricate gadget into the piano. "That is the print- ing press," he said, pointing to the gadget; "it puts the name of the cigarette on the paper." As the fiat band of paper trav- eled along through the machine an even layer of the tobacco dropped gently upon it. The covered band entered another complex whirligig containing wheels and spools and much shining metal. This thing gently rolled the tobacco-covered band of paper into a cylinder, smeared a bit of casein paste (made from milk) upon the edges, and there was a cigarette about a yard long. The long cigarette passed into still another collection of wheels which careened about in a very drunken fashion. This last dingus operated the finely adjusted knife which cut the long tube into cigarettes exactly 70 millimeters or 2 3-4 inches long. The self-sharp- ening knife is adjusted so that it will cut the tube at right angles despite the fact that the long ciga- rette is moving very rapidly indeed. Each of the machines is attended by an operator, a young man who hovers around it, constantly tuning it, watching the roll of paper, and peeping into and under things. As- sisting the girl at the "keyboard" is an examiner, another young lady, who wheels a tray contain- ing balances around, and weighs a lot of cigarettes every minute or so. The racked-up product now is taken over to another machine-- one which has more wheels show- ing than the first, and which is less noisy, but no less precise. This takes in the cigarette at one end, and unwinds rolls of paper and tln- foil at the other. Down inside, then, it proceeds to make the packages, to stuff them with cigarettes, to seal them, and, finally to stamp them. Testing Apparatus. One of the most unusual things in this remarkable device is a test- ing apparatus, containing twenty iron fingers, which reach out and touch all of the cigarettes of every package as It is stuffed full. If any cigarette in any pack is de- fective, that package, a moment later as it starts out on the line, is discarded. The last operation of this machine places a 6-cent revenue stamp on each package. Yes, on every single package of twenty cigarettes, Uncle Sara col- lects 6 cents. The government re- ceives a greater profit from ciga- rettes than farmer, manufacturer, wholesaler and retailer combined. But for this excise levy, a package of the best cigarettes could be sold at 7 cents retail. At that Americans are rather fortunate because abroad taxes are higher and in many countries to- bacco monopolies are maintained which offer inferior cigarettes at high prices. I < / /f I~,. _ ....
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16 VIRGINIA TOBACCO Another machine now takes the packages and seals them in an overcoat of air-tight, water-tight cellophane. A few years ago be- fore Richmond-made cellophane was used, the manufacturers de- pended largely upon tinfoil (also made in Richmond) to keep the cigarettes in proper condition dur- ing marketing. Tinfoil still is con- sidered indispensable, but the thin outer wrapper helps mightily. In- cidentally the paper for the pack- ages, the cardboard used for the cartons and containers, and tin cans in which some of the ciga- rettes are packed, also are pro- duced in local factories. The conveyors which bring empty cartons to the operators and take away the filled ones to be sealed and packed look like minia- ture streets carrying maximum traffic. Policemen might learn quite a bit about the control of traffic if they would study the me- chanics of these conveyors on which traffic jams never occur. A minute after the cartons are sealed they are packed in pasteboard boxes which contain 10,000 ciga- rettes each. Now they are ready for shipment. i :iiiii~ R T,',~O I 0350345
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,~01 03~034.6
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DISPUTED C|( theme had been used in ciga- adver~sthg previously. ~L~InI ~rette was claimed to: ~ave been ~ as far back aIi lg12; the frlen~j~p theme as ion~ ago as 1914; sn~e romantic and ~ramat[c ba~unds were de- ,fared to be in Common use After the plalntiff's case had bee~t mottor~ were made to d~rnl~ the complaint on t~e iTotmdJ that no proo~ of plagiar- Ism had beer, insofar was the agert~ in Judge ~ re.se r-,,ed New York, Nov, " Collier, Jr., of Street Advertising Company, was tailed ~ather of the tamous "best campaign for Lucky Strike cigarettes today when American Company began its suit in which Arthur the creator of the plan, t~I, be(ore a jury in [ederSl court, Judge Robert Patterson going into its second Lord & Thomas, Lucky agency, is Gr~swold's case, as he out- lin~ci ~ in court, is based Ofl the altegaUon that in 1932 he submit- ted a ~lan to W. E. Witzleben, then adverttsing manager for American Company, embracing the used iR s campaign three years later. At thai ttrne Mr Gris= wold was head of his Griswold Company, and he had out~ne~ his idea and sub- mitted tentsbve layouts and rejq by the former Company's was the plaintiff's ~dea, and was kntroduced to show of the comp~ment parts of Mr. cared that he had "best meai~ of selling ing to He submitted the I Washington Hill. I liked the plan well a whole campaign ,i CoUler said that Ithe idea without cept the agreement not be used unless rising were a part Lord & car cards aud u~d. The former on capacity a~ ti~ing ins tire,# that he suggesttor~ personal call, suhmitted used by i Tho~ in I~+ began in state courts, b~t had to be transferred to the fed- eral ,Courts, because both were "foreign" This and other legal stop~ deLWted the actual start until last Present indications a~ will go to the j~u'y i~ days. Phillip S. Rivl.tm is torney for Mr, Griswold and is represented by Cl~= bourne, Wallace, Park & W'n|~ 0 1 0350342
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' theme had been used in ciga- advertising previously, The talking cigarette was claimed have been~as far back 1912; the frlen theme ~ long ago as 1g14; enV~he romantic ba~ds were cLared to be in common use. After the plaintiff's case had been completed, motions were made to the complaint oz~. the grounds that no proof of plagiar- ism had been insofar was of Lord & been the agency ADVERTISING A Lucky Strike Gets C0url Verdid in $500,000 Suit Griswold's Claim to Cam'paign Authorship Draws Dismlur~J elwith ti~" of G[~rls- York, Nee Jr, of Street ing Company, was wr o~ the famous ntmpaign fol Lucky tnday when tdhDa~y began its suit m which Arthur i is seeking t~) collect S500,- J ~e creator o~ the plan The fo:-e a jury m federal court. d~e H,~bert Patterson p~- ~s g~AnR n,lo iL~ second L~rd & Thomas, Lucky dye[rising agency, is a co- ;riswold's cuse. as he out- in court, is based o~ the m that in 1932 he submit- at, to W. E. WJt~leben, i~[~ t~Rt%~tgc~ [or Company1 embracing used in a campaig~l tar At that time Mr as head of his own iswold Company, and he had outline~" his idea and sub- mittad tentative layouL~ was rejee~d and hit ~s~meny by the Cpmpanys re- was based the plaintiff's idea, and introduced to show ol the component parts of that he bad ing to He submitted the i Washington Hill, l liked the pla~ well a whole campaign Collier said idea without cepf the agreement not be used unleM lislng were a part Lord & caz~ls and were used, The former Wilzleb¢~ Collier on the 1 capacitY as tisthg that he 25 suggestions or personal so submitted used by Thol~as in It began in tl~ courts, to be transferred to the oral-~ourts, because both defel~l- were "foreign" corporatioms. This and other legal steps del~yc-d the actual slart unRt last we~,k Present |ndlcaUons are ~gt the will go to the jury ia five days, Pllillip S. RIvI~ Is torney for Mr. Griswold and is represented by bourne, Wallace, Park & W'hiteslde. wold agalx~t Company and L ot i~- be filed at Such soon as the &I~ drawn up by who asserted ar~ original cigarette field," thWlt the orflY plan ,a ten-cent brand this Compare, ad- re~elved a~n advert/s- hied having used any pa~t of it. Hill lgatel~ Collier i One el the las~ defense walt George Washington Hill, presi- dent of the tobacco firm. He corgi rob~rated the story previously tald! by Barren Collier, Jr., the{ Coltter was the originator of the ide~* u~ed in 1935 advertising for He also testified that back in 1917 ~ration of c~py ~[t)r ~erelgn eig~ i arettes~ a produet of A~r~an T~i ~ce,, C~,~y~ ~ ~b~ch th~ ~loWan~ ~ ~ ~ver ~e/l yetiS! was used ~g w~t~ the °~%a~kirtg c~arette'~ am of the that on the evidence the case there is hi,thing in plaintiff's plan lh~t w~s original ~r unique that was taken by defendant American Tobaceu Company." -I], 7 , 01 03503a8
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t I .e, HOW HILL ADVERTISES IS AT LAST REVEALED Fascinating Story Is Related by American Tobacco Company President on Witness Stand in $500,000 Idea Suit--Here Is His Verbatim Testimony Com- pletely Uncovering Hitherto Jealously Guarded Secrets TESTIFYING before the United States District Court in New York last week, George Washington Hill, president of The American Tobacco Company, told in full de- tail his company's advertising his- tory and experiences. Furthermore, without hesitation and with the utmo;t frankness, he levie~ed American Tobacco's ad- vertising policies, methods, ~)bjec- fives and ideals. He described his relationship with his agency,' Lord ~¢ Thomas--showing how the agency got into the American Tobacco picture and telling of its present place in that picture. .~Vithout any inclination to be- come theatrical, this more or less seasoned reporter unhesitatingly pronounces Mr. Hill's fascinating and intensely human-interest story to be just about the most important advertising recital of the present generation. For many years now eveo advertiser has wanted to know the Hill way of doing things. But Mr. Hill has consistently refused to tell. He tells'why he refused to put PRINTERS' INK lot November I'l, 19~8 By Herbert L. Stephen out a lo-cent package of cigarettes --and why he confined his merchan- dising activities mainly to cigarettes rather than handling tobacco prod- ucts in general. He tells about the evolution of tl~e present Lucky Strike container. He tells why the entire advertis- ing program of his company is dominated by one man-the one man being himself. He tells all about the origin of the famous slogan, "It's Toasted.'" He tells how his company used testimonials-of the unpleasant ex- p ~ r i e n c e s of Schumann-Heink when, as the first woman ever pub- licly to announce in print that she smoked cigarettes, she began to get cancelations of some important concert dates. And so on and so on. Mr. Hill's testimony was ~ven as a witness in the $5o0,oo0 suit (mentioned in PRINTERS' IXK last week) brought by Arthur R. Gris- wold against The American To- bacco Company and Lord g: Thomas. Mr. Griswold's claim was that the tobacco company had "ap- propriated an advertising plan, ideas and slogans" submitted bv him in 193a and had used similar ideas in 1935. Mr. Hill's company and the advertising agency won the suit. Judge Robert P. Patterson gave a directed verdict for the de- fendants. What follows is a verbatim report 11 03503d9
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of uhat Mr. Hill told on tile wit- ness stand in both direct and cross examination. It is slightly abridged in spots but the main features of his testimony are given in full. George "W. ~,Vhiteside, of Chad- bourne. D,'allace, Parke & White- side, was trial attorney for the de- fendants. Philip S Rivlin appeared for the plaintiff. Here is tile verbatinr report with Mr. Whiteside questioning Mr. Hill: Q. \It. 11i11, uhat position do ~ou hnht in the American Tobacco Corn- pan}? A. I am president. Q. Since when have you been presi- dent? A. My father died in Decem- ber, 19-o5, and I was elected to succeed ltim about a week after his death. Q. And you have been president ever since." A. Yes, sir. Q. Before that time did you occupy any other office in the company? A. I had been a vice-president of the American Tobacco Company since the dissolution of the old American To- bacco Company by the Supreme Court, I think it was in 19it. Mr. Duke made me a vice-president when he was president. Q. Before you were a vice-president in ~9tl had you had earlier activities with the company? A. I had. Q. What were they, briefly? A. 1 had been president of a company that my father and I purchased by the name of Butler & Ruder. They man- ufactured and sold many types of to- bacco products. The principal brand was the brand of cigarettes called Pall Mall Famous Cigarettes. Q. When you first started out, how old were you aft0r leaving college to start your work with the tobacco com- pany? A. My class at colleg~ was 19o6. I left at the entrance of my junior year, ~,hich was 19ot. I was born in 1884. That would have made me just twenty years, wouldn't it? Q. Just about. Then yon started }'our practical work? Y,. I started to work. in the Snuth. 12 (~. t, Vhen in the course of your offi- cial duties as an officer of the Ameri- can Tobacco Company did you direct }our attention to the advertising de- partnrent of tile company's activities? A. Well, I had been in the South from 19o4 in our factories and in our leaf department until 19o7, at which time my father and I bought this Butler & Butler business which I have referred 'to, and I was put in charge of the Butler & Butler business. From that time on my activities with the company have been largely centered tqmn sales and advertising. Q. And when the brand of l.uck~ Strikes--about what time was tha~ brought into being? A. I wouldn't want to say definitely. It is a matter of record. I think that it was during '9'7. Q. And prior to that had there been a brand of smoking tobacco called Lucky Strike? A. There had been a brand of smoking tobacco called Lucky Strike. It was manufac- tured by the Patterson Tobacco Com- pany of Richmond, Virginia. It ~as manufactured for at least twenty or twenty-five years• Q. It is now manu['actured and sold by the American Tobacco Compan.~? A. And it is now manufactured and actively sold by the American Tobacco Company. Q. With respect to advertising ciga- rettes, briefly, what was your expe- rience in that relationship/ A. I have been actively engaged since ~9o7 on one side or the other in practically every cigarette campaign that has run in America and some that are oper- ated abroad. Q. And practicatly all the brands with which the American Tobacco Company has had to do or has sold you have been identified with the ad- vertising and the policy of advertising of the company? A. Yes, sir; since the dissolution of the American Tobacco Company when Mr. Duke made me a vice-president. Q. In the years since ~9t7 uhen the Lucky Strike started have you centered PRINTERS' INK lot Novtmbtt 17. 29~8 l ] i!i ii J i " i ] - i ' f fqT gg"l 03S03G0
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~ottr attention largely on the advertising and sales policies of the Luck~ Strike brand? A. The success of the Amer- ican Tobacco Company has been largely due to a policy of concentration. Yon see, Mr, Duke had developed the tobacco business to a point ~here he had approxinlately 9-" per cent of the cigarette busine:,s. 8o~otld per cent of the smoking tobacco busi- m:ss. and So-odd per cent of dm plug husiness. Mr. Duke bad accomplished that result through great merchandising ability and through the pur- chase of other companies. ,X.lr. Duke's problem-and my father was Mr. Duke's first Wlde World lieutenant in the sales end-- Mr. Duke's problem was a little different from the problem that confronts us in merchandising today. With such a large propor- tion of the total volume of con- samption in the United States Mr. Duke had to be sure that the salesmen that he had that went around were courteous to the dealers and did not impose with the great attthority that the}" had by reason of the huge con- trol of the business that he had. The result was that Mr. Duke's pol- icy, particularly in latter years, and my father's policy in latter years was decentralization rather than concen- tration. Mr. Duke developed a series of departments, the long-cut depart- ment, the cigarette department, the smoking tobacco department, and the little cig-ar department, each of whom had representatives and each of whom would call upon the same dealers. If the smoking tobacco department with 80 per cent of the business, i[ that representative of the smoking tobacco department got a little beyond his breeches, the cigarette man behind him would hear of it and Mr. Duke in that way created competition in his own company for the reasons that I refer to. When the Supreme Court dNsolved pBINT.KII~" INK for No~ombtr 117, 1938 George Washington Hill the American Tobacco Company and it was broken up into the identity of the Pierre Lorillard Company, Liggett g: Myers, and R. J. Reynolds Tobacco Company competition became very keen between the tobacco companies. For a while we continued by force of habit in Mr. Duke's policy of operat- ing our company on the hasis of de- partments, but we soon found that we had plenty of competition from the outside without creating more from the inside internally. So we Changed our policy, and before nay father's death I had convinced my father that that was a proper change and a prac- tical change from a merchandising view to make. and on mv father'~ passing the first thing that 1 did in the development of the companies was to insist on this policy of concentration which has gone through the opera- tion of the American Tobacco Com- pany's business since that time and has been often a subject of commeut and criticism among other merchants. Yon see, personally I dnn't believe in selling.horseshoes and buggy whips. If I had a horseshoe factory and a buggy whip factory with the increase of the atttomobile I would try through some mechanics of mine to develop a 13 FI T ,'K O 'I 035035"1
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motor car. I would rather selt some- thing that was easy to sell rather than to sell something that was hard, and so I found-- .M~ Rive.x: I don't want to be rude, but I think we have gone a lit- tle far afield. THE COe'RT: I think we have. SIR. Wm-rr.smE: I will direct atten- tion to the point. Q. In this policy that you men- tie, ned was that particularly directed toward the advertising and merchan- dising of Lucky Strikes? THE WIT~r.SS: (To the Court) If I may, sir, I just want to say, with the gro~th in cig-arettes it became clear to me that the policy of concentration on cig-arettes was the right policy for my company, and we did concentrate on cigarettes and we concentrated on the exploitation of the one type of ci~arette, the Lucky Strike. Q. A new brand that came into be- ing in *9t7? A. Yes. Q. Then with this change that came about in 1917, did you have a message to the public as to the character of your cigarette, its quality, its method of manufacture of this new brand that was called Lucky Strike? Did you have those thin~ in mind? A. In mv experience from 19o7 I had found that in the tobacco business, perhaps above all businesses-- 3lR. RP,'LIN: If your Honor please, I didn't object to the question, but I do object if we go back to 19o7. We are up to 1917 with this new brand. THE COURT: I think what the witness is starting to say is that he found that advertising was the salient point in the sale of tobacco products, Is that it? THE WtTXESS: A little more than that. THE COURT: If it is on advertising it is a/1 right. THE Wrrxrss: It is on advertising. I found in my experience that as the tobacco, above all businesses with which I am familiar, were subject to trade-marks, the boss of the tobacco products was the consumer, the man who spends his money, and I found in ord,¢r ~0 advertise effectively to the consumer it became essential that you find some attribute connected with )'our brand of tobacco which could be exploited as a definite merit for the consumer. Origin of Lucky Strike Package Q. Will you tell about the ori#n of the design of this Lucky Strike package. A. This package was de- signed based upon the old Lucks Strike tin tobacco manufactured by the Patterson Tobacco Company. The basis of the design is fundamentally that of straight lines and plain color~. The old tin of tobacco was very much itavolved with curlicues and all kinds of designs, so that you will notice the Lucky Strike package is extremely simple in its composition and we be- lieve extremely high-grade and an extremely strong and effective explana- tion of the product is my own ~Tit- ing on the back which describes the product as best I might and the con- fidence we have in the product is shown by the guarantee which appears on every package and which at that time was a new thing in the tobacco business, the guarantee that if for an~ reason the package was unsatisfactor'¢ the dealer would refund the money and we would refund the money to the dealer. Q. I wish you would look at Exhibit A-55, "The Selling Principle of Dem- onstration," Copyrighted in 1917. What if any connection did you have with the preparation of that book'.. A, As everyone knows the question of sales and advertising is a very broad subject and can occupy your attention for many many months and years. It has occupied most of my life. In an endeavor to put down my thought~ definitely for the benefit of my asso- ciates and my employees I wrote th~s book, "The Selling Principle of Dem- onstration," and ilhtstrated by three definite brands belonging to my com- pany the principles that I outlined from my experience as shown by this volume. Q, And those illustrations are copies (Continued on page 89) PRINTERS' INK lot N~ember 17, 19~ ~J - ! -! 1": 0"I 03 503 52
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Y : °o How Rill Advertises Is :it Last Revealed (Continued jrom page 14) of advertisements that were used in the advertisement of those brands. A. They are all illustrations of adver- tisements that were used in the adver- tisements of those brands. Q. Mr. Hill, in carrying out the policy of the company with respect to advertising, who was the man who had the final and last word of au- thority during the time of your presi- dency of the company? A. Myself. Q. And who during that period did ~ork in connection with the creation uf campaigns? A. "We had what might be called a board of strategy, Mr. Hahn, Mr. Riggio and myself. Mr. Hahn had come to me from the firm of Chadbourne, Stanchfield & LexT as assistant to the president and eventu- ally became a vice-president. Mr. Rig~o was vice-president in charge of sales. Q. And who had the final word as to the acceptance of such campaigns and their being put on for publica- tion? A. Myself, Q. Mr. "Witzleben was employed by the company during the period of '¢otlr presidency, was he not? A. He Was. Q. And bad been for many years be- fore? A. l-le had come with me from Butler & Butler, as a clerk right off the bench. Q. And finally was put in charge of the advertising department? A. He ~ as. Q. And what briefly, in t93", were his duties in the advertising depart- ment? A. I have mentioned Mr. Rig- gio as sales manager. When an ad- vertising campaign was developed by the board of strategy certain illustra- tive advertisements would be turned over to Mr. Witzleben who in turn wotfld follow through on these adver- ments after approval had been given for the purpose o[ developing those advertisements for synchronizing the work in stores and with retail dealers in our general campaigns and general meetings. Q. Did he have any duties with re- spect to creative work? A. We should have been very glad to have accepted an), suggestion Mr. Witzleben made with regard to creative work, but we didn't get man)'. Q. Did he have any duties with re- spect to them? A. No. Q. Have you ever met Mr. Griswold. the plaintil~ in this action? A. Not to my knowledge. Q. Or talked to him to your kn(r~l- edge? A. No, sir. Q. In t932 did you see any o[ the material which Mr. Griswold claims to have left with the company and which we do not doubt was left with the company for several days in the custody of Mr. Witzleben? A. No. sir. Q. When for the first time did you see that material which has been of- fered here in evidence? A, When it was shown to me at my examination before trial. Q. This material refers particularly in Exhibit 4 to a proposition submitted by Mr. Griswold on March =t, i93-',, to Mr. Witzleben for a new brand of cigarette to be called "Buddy," and then goes on with a statement that the basic idea of the campaign is to present dramatic incidents and the rest of it is largely made of merchan- dising suggestions with respect to this new brand o[ cigarette that was to sell for ten cents, Now with respect to the m-cent new brand of cigarette to he called "Buddies" to sell for to cents, have you an), recollection of any conversation had by you with Mr. ~,Vitzleben on that subject? A. Very definitely. Q. And was your attention for the purpose of refreshing your recollectinn invited to any publication having to do with the lo-cent cigarette? A. Yes. Q. To what publication? A. For- tune Magazine with its issue on lo- PRINTERS' INK for Nmember 17. I93~ 89 1 03 503 53
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,cut cigarettes published some month in 193~'. Excuse me. I said "issue"; it should be "article." Q. And that was on the to-cent cig- arette? A. Yes, sir. Q. When had that to-cent cigarette come in as a factor in the cigarette business before that? A. It had been suggested as far back as t93o and there had been constant urgings that the American Tobacco Company put out a lo-cent cigarette. QWhe m-cent cig- arette is not practical--not today prac- tical. You can't sell a lo-cent cigarette and pay the farmer the proper price for his tobacco--a living wage. When you buy tobacco and put it in a to- cent cigarette you make such an in- ferior product that the consumer does not like it and the history of the ~o-cent cigarette shows that to be so every time a new brand of lo-cent cig-arette comes out and everybody runs to the new brand and tries it regard- less of what the brand is, showing that they like the price of to cents but they don't like the quality of io-cent cigarettes or any of them that have been put out. They are not what the trade wants, not standard brands.~ Based on that policy of ours of concentration I was resisting the suggestion on anybody's part that my company put out a lo.-cent cigarette. Q. \Vith that in mind do you recall a conversation in 193= with blr. Witzle- ben on that subject particularly- A. Very well. Q. --particularly where the name of "'Buddy" as a cig,-arette name was used? \. Yes. Q. Now uill ~ou ~tate ~our recol- lection of that conversation? A. Mr. Witzleben came into my office at that time on the tenth floor, and he stuck his head in the door attd I said. '%Vii- lie, what is it?" IIe said, "1 have something 1 want to talk to you about." I said, "Come in." He came in and leaned over a high back chair. perhaps ten feet away from my desk, and had in his hand some papers of a letter size. He said to me, "Mr. Hill, l think a fellow has a suggestion here ~ut might he interested in." And 1 9O said, "What is it?" And he said, "He suggests we put out a new cigarette at 1o cents and call it 'Buddies.' '° I said, "Willie, get out of here. You know very well I have got a book. I am not interested and you know it." And Mr. Witzleben said, "All right," and left. Q. Was that the entire conversation? A. That was the entire conversation. Q. This reference, **I've got a book," what do you mean by that? A. I have mentioned that I put into my com- pany the policy of concentration, and in endeavoring to get that policy into the minds of my people, my best method of selling goods, is always by the way of illustration or by story; and in endeavoring to get concentration inm my people's minds I have always used my book story. Do you want me to repeat it? Q. Yes. A. There were two chorus girls at the corner of Forty-second Street and Fifth Avenue-- MR. RIVLIN: I don't know that this is material. THe COVRT: He means that he is not interested and is thinking about something else. THE WITNESS: l don't want a li- brary; I want one book. I have got a volume, and I want to concentrate. Q. That is illustrative of concen- tration. THE COURT: Is that a manner of expression that you had with Witzle- ben? THE WITYESS: Yes, sir; I have used that with my people and the story to back it up. Q. Now have you searched your mind thoroughly as to whether any- thing further was said to you at that time hy Mr. \Vitzleben or any fur- ther expressions of plans or form of any advertising campaign or anything of that kind was spoken of? A. I ha~e Q. Well, was there such? A. No, sir. Q. In addition to your familiarity with your Lucky Strike advertisement had you also kept closely in touch with the competitive advertising of other cigarettes? A. Y~, sir: I had to. Q. And made their advertising a I'IIlNT[';IC.S' INK for Noveml*~r I7, 19,~ ~i~ Z~ IL~!2 5!!ii!5 ql:gOl 035035,¢
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- . slmt),a, ~t']l as )~,m own? A. Yes, sh'. Q. Now there are certain attributcs ~ou have referred to as featuring in your mind the policy of cigarette ad- vertising. Now I notice, and 1 would like to read this into the record, you have referred to your composition on the back of the package, "A blend of the finest Turkish and domestic to- baccos (based oil the original Luck)' Strike Tobacco formula). An entirely new principle in cigarette manufac- ture. 'It's toasted.' " Where did those ~ords "It's toasted" come from? A. My father was anxious to put ,)ut the brand of Lucky Strike cigarettes, and l was not willing to [)tit it out be- cause I was sales manager and respon- sible to him for the success or failure of it. and I didn't have a reason for it. I went over to the factory one day, which was then on Twenty-second Street, and when I got within three blocks of the factory it was very ap- parent to me, the delicious odor and aroma of the tobacco as it passed through the toasting machines. I came back and had a conference with my father the next day as to ways and means of selling Luck~ Strike Cigarettes, and I said to my lather, "You know there is something in that process of Charlie Dean"--he was then vice-president in charge of manufacture--"there is something to that process, and I cannot express it." He says, "What do you mean?" I said, "He cooks it, cooks the tobacco." My father says, "That doesn't mean any- thing, he cooks the tobacco, that doesn't mean anything; there is no sense in that, That doesn't leave any method of appeal; that doesn't leave any appetizing thought particularly." He says, "'What is it that you use, what is it you use, where heat is ap- plied in an appetizing way that will react quickly on a person's mind and visualize an appetizing application of heat?" A man by the name of Gerson Brown, connected with the cigar busi- ness, came in the room at that same time, and father turned to this fellow, and he says, "Gerson, what do you have that is appetizing to which heat pfI1NTERS' INK for November 17, 19S8 has been applied.~" And B~own says, "I alwa)s haxe toast in the morniug." My father sa)s, "That is it.--lt is toasted." And my father created the phrase that way. Attributes of Tobacco Q. Had you in this long experience of yours learned of the various at- tributes, or at least those thin~ at- tributed to cigarette and tobacco smok- ing in people's minds? A. A good many I think. Q. What are some that come par- ticularly to )our mind? A. I don'l quite understand the question, ?,It Whiteside. Q. Well, in )our advertising o',er a period of )ears, and your reading of the literature on the subject what qualities or attributes are supposed to reside in cigarette or in tobacco smok- ing? A. From time immemorial to- bacco has been considered as a com- panion of men. Within recent years it has also been considered a com- panion of women, and it makes for companionship between the two. Dur- ing the war I developed an idea of selling in combination cigarettes and Bull Durham through the newspapms to the soldiers. And, we have innumer- able stories of the relaxation and the relief-- MR. RtvuN: I do not think this wimess is giving an answer to the question. I do not want to be rude. ThE Cout~T: I think it is all right. I suppose the point Mr. Whiteside wants to develop is that the associa- tion of tobacco with companionship is a notion that I suppose has been cur- rent ever since Sir Walter Raleigh. found it among the Indians in Vir- ginia. I don't know of any other rea- son why it would be used unless it gave pleasure, it certainly is not a medicine. Go ahead. Q. Well, it has further qualities too that you have in mind besides the idea of companionship and the friendly feature? A. Relaxation, soothing qttali- ties, relief from strain. Those things that al'e involved in companionship. Q. And solace? A. Yes, as a matter 9i ;ii~II :!:i~: Iqliq01 0350355
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of fact, snlace--in the purchase of But- ler ~ Butler Company that I spoke of, one of the brands that we bought at the time that we bought that com- pany for the American Tobacco Cont- pan v was named the Solace Brand. Q. Now with these attrihutes in mind have you recollection of early use and experience with the advertis- ing idea of animating the cigarette and endowing it with the power of speech? A. Oh, yes; we have done it ourselves. We did it in the Sovereign campaign and you might say also in the Sweet Caporal campaign. It was done by Lorillard on Zira, and Nebo with little animated girls that jumped Otlt of the dgarette packages, gi~ing each one a name. It was done hv Chesterfield in their visualization of the comforts and companionship of the cigarette on the plane. Animation of the cigarette is an old thing. Q. And to have it talking about various things in relation to its quali- ties or attributes is not new? A. No, I think the records of the advertising department will show all that. Q. And in the development of this idea of animation I will show you this book which is the t9t7 record I be- lieve of the Sovereign campaign. Do you rememher that deveIopment par- ticularly, hecause we have referred to it here in this trial frequently--what if any personal participation or direc- tion of that did you have in 19t7? A. Well, there is a man by the name of Imray who is connected with the Armstrong General Advertising Agency with whom I personally developed all this campaign. Q. In the cantpaign of which we ha',e produced a number of copies in e~idence you note, do VOlt not, tile cigarette talking, that is, the cigarette is speaking? A. Yes, sir. Q. Was that idea developed by you and Mr. Imrav at that time? A. It was. Q. And do you note--and let me call your attention if I may, to one or two examples--now will you take this ex- ample, which is Defendants' Exhibit Y which has been fully described be- fme this jury here before, the cig- 92 arctte building the blocks and so forttt? But, let me partict, larly call attention to this paragraph: "Now let's all us good folks stick together. Let's be friends, and you bet I, Sovereign. will never fail you." That thought ot personality, that is of getting together. and the cigarette being one of the folks and of the friendly idea, "I never fail you." do you recall participating in t9t7 in the creation of that cop}? A. Certainly. Q. At fl~at time there had previously been developed before in the Zira campaign the idea of the talking cig- arette? A. Yes, sir. Q. So even then when yon used it it was not new, was it? A. No, sir. Q. In your campaign I note most of the remarks are addressed to the peo- ple of the South, of smokers of the South. Why was that? A. Because Sovereign sold there. Q. That was the market? A. Yes. Sovereign had a good sale in only two of the Northern cities, Rochester and Providence; excepting those two cities the sale was largely confined to the South. Q. That is where most of the adver- tising was? A. Yes, sir. Q. Now the use of pictures or illus- trations showing either dramatic or romantic situations, had you developed and were you familiar with their u~e in cigarette advertising over a period of years prior to 193e? A. Unques- tionably. Women and Smoking Q. And when the girls began to smoke publicly, was there an attempt to make an appeal to girls or women as purchasers of the cigarette in your advertising? A. Yes. That is interest- ing. The whole cigarette business had always realized the appeal to the pub- lic of romance, and had alwa)s fami- ful illustrations so far back as I can rentember. Even when Francis X','il- son was advertising Turkish Trophies, a young lady by the nante of Green, who was one of the Florodora Sextette, Francis Wilson developed a number of situati(ms using this girl in different I'ItlNTERS' INK /or Xo~em~,er I7, ISiJS i fql-,,O'l 0350356
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positions. [Editor's Note: Miss Wilson ~as used as a model.] We never dared to talk about women smoking cigarettes, until what is known in the trade as the Lucky Strike cam- paign. We had a series of testimonials of opera singers, and among others was Madame Schumann-Heink. She was the first woman that ever pub- licly came out and testified that she smoked cigarettes, and she bad rather an unpleasant experience. She was in the West and she had some dates with some girls' colleges to sing out tttere, and as soon as she published this site be~n to get cancelatiolls on some of those dates, and she quit. But that was the start of the breaking down of the prejudice, and from that time on, of course, all cigarette manufacturers have developed all the romance they could use, rising women's testimonials and women in romantic situations. Q. Now Mr. Hill, will you tell us as well as you can the sequence in or- der of time chronologically what was done by you and Mr. Collier in brining out, "I am )'our best friend" campaign, such as we have exempli- fied here on the easel? A. In the earl)" part of 1934, Mr. Barron Collier, St., whom I have known for twenty-five )'ears or more, telephoned me and said that Barton, Jr., was coming into the business, or had just come into the business and he wanted to know if I wotdd talk to Barron about advertising. Well Barron Collier, Sr., and I having been friends for years, and I knew young Barron, just having met trim, and I have ahvays had a high regard for the Colliers, so I was glad to be helpful, if I could. I told Mr. Collier to send the youngsler down, Young Barron came dm~n and I spent about two hours with hinl in my otfice, and emphasized the principles that are outlined in that large book, "Selling Principle of Demonstration." After we were through and I had told hint what little I could about adver- tising in the time I gave him on it, I gave him tile book and asked him to read it and come back and ask me any questions lm wished. He kept tile PItlNTERS" INN /~Jr "¢oreln6er 17, 1'038 book for two or three months and brought the book back. And again, 1 talked to Mr. Collier, Jr., about these matters of advertising, and as I said in my examination before trial, discussed with him the part of that book which I think is sound in the problem from a manufacturer's point of view. Mr. Collier left. Alittlelater on he either telephoned me or came by to see me, I don't know which. But, at any rate. his father asked me to take luncheon with him at the Clot,d Club, and if ?oung Collier came up to see me he told )ou what I will tell )ou now; if he didn't come up to see me. he started the meeting at the Cloud Club by making the statement that I ~ill now make. He said to me, "After I had talked to you about advertising and brought that book back," he said. "'it was about noon, and I went out and had hmch." Q. What was the first reference and by whom was it made to the words "i am your best friend" in connection with yot, r meeting, s with Mr. Collier? A. 'Well, I went to the Cloud Club. Mr. Collier, Jr., said to me, "'t have an idea, and I got the idea because when I left )'our office I went to lunch. and I was sitting there at lunch b v myself; and I am not a cigarette suloker. I smoke a pipe. And 1 was thinking about what you told me about tryiug to get something which ",~ould attach itself to tobacco, and it seemed to me that my pipe was my companion, that it gave me relief, that it was con- stantly with me in times of trial and stress, and I got helt) and pleasure from my pipe, and I thought of mx pipe as being my friend. And no~, i come to ;'ou because if my pipe ,.,.'as my friend to me, why could not a cig- arette be a friend to a man ~ho smokes it? And I have this thing that I would like to present on the theme of tile friendliness and kindlinc.,s o[ tobacco, particularly "I am your be-st friend, I am )'our Lucky Strike.'" And that was the presentation Mr. Collier made, summarized., at that time. Q. And after the presentation at the Clout[ Club what if anything ~as done 93 T ,'q 0 '! 03 503 5 P
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',~ith Ihe copy plesented hy him or an? part of it, with I,ord & Thomas? A. With Lord ~ Thontas? Q. What was done after that meet- ing? A. That was the latter part of ]934- Mr. Collier's suggestion seemed timely to me, and I tried to get hold of Mr. Hackett and tried to get hold of Mr. Hahn and any of them I could. I got Miss Sheridan, his secretary, and she sent for Mr. Riggio and Mr. Riggio came up to the Cloud Cluh, and at the same time I telephoned to Lord & Thomas and had Mr. Hackett come up to the club, he being the contact llllin. ~VC went over some Of these sketches with Mr. Riggio aml Mr. Hackett, and one sketch was given to Mr. Hackett, and the rest were taken hy Mr. Collier to be developed further by his organization and the other set was given to Mr. Hackett to develop along the lines he might think it should be developed along. That was my procedure. Q. Then did yon observe the de- velopment of the campaign with changes made f'rmn time to time in the six cards that were developed? A. Yes, sir. Q. You followed through on it? A. Yes, sir. You mean did I participate in that? Q. Yes. A. Very much so. Q. Did you pass upon and give the order for publication of each of those cards? A. Yes, sir. Q. And was there developed dur- ing that period by Lord g: Thomas a campaign for newspapers, magazines and periodicals? A. Yes, sir. Q. And did you pass upon each of the publications? A. I did, up to the time of the introduction of Fred As- taire as I testified in my examination before trial. It will be noticed that certain of the newspaper copy intro- duced Fred .~taire to be heard on a radio program. Fred Astaire was put on our Hit Parade radio program by Mr. Riggio and Mr. Hahn while I was abroad, and those copies that refer to Fred Astaire I had nothing to do with. The others I had a great deal to do wlth--not everything. 94 Q. I)id \011 pass judgment upon tilc u,,e ot the '~arious [o~ms and exptc_-:- sions in each instance? A. Yes, sir. Q. Did yon pass judgment upon Ex- hibit 65, a picture of a boy holding a girl with the words 'TI1 never let )ou down" and a reference below to the center leaves and the taste? A. Yes, sir. Q. And you passed that to be pub- lished? A. Yes, sir. Q. Did )ou know at the time the boy in Lord ~ Thomas who had de- ~eloped that particular phrase, "I will never let you down?" A. No, sir. "l'his copy is marked No. 7-A. It was alwa)s our practice with Lord g: Thomas during these )ears to de- vetop practically ten advertisements before we actually authorized the pub- lication of a newspaper advertisement, so we knew we would be prepared ahead in a sequence. This was the tirst of the series that was developed for newspaper use, and that is dearly shown by the number of the ad. I remember as to this particular advertisement that Mr. Hahn liked it and he made the suggestion that it might well he developed for a dealer help, aud Mr. Hahn or Mr. Rig~o turned this newspaper copy over to Mr. Witzleben to develop it for dealer help, and I believe such dealer help was developed. Q. Do you recollect Mr. Hahn call- ing attention to a clause in the con- tract by which if you exercised your right of cancelation that you could not thereafter use the various things, such as "I am your best friend," 'TI1 never let you down," and so forth, that are mentioned in the contract? A. I do. I furthermore recall Mr. Hahn answering me--I was surprised at that time that we got two contracts, I thought we were to have only one. and I asked Mr. ttahn why and he said there was some complications in Barton Collier's structure which made two necessary instead of one. Relations with Lord & Thomas Q. In your relations with Lord k Thomas Agency, which 1 understand PR1NTE, RS" INK lot ,'~'overnber 17, 1918 4 Z fq 1" ;,¢ 0 1 03 503 58
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from the testimony here existed over a period of quite a number of years, twelve years or more? A. Yes, sir. Q. Do you recall whether you had a written contract with them? A. Some letters passed, but there was no written contract. Q. Do you do business with them and employ them under any under- standing or oral or other type of ar- rangement? A. We do. Q. What is the arrangement? A. Today we pay them 15 per cent on the ~'oss placing of the business, except as applied to billboards and there we pay 16~ per cent. Q. You say "today." Previously was there a different arrangement or agree- ment? A. Yes, sir. Q. What was it? A. I can illus- trate it more clearly by saying it was on the net and referring to an imag- inary fi~lre. Formerly, back in t93o, I think it was, we used to pay them on the basis of $too billed, 15 pet' cent off; that is, $85, and then we gave them 15 per cent on the $85. Today we give them 15 per cent commission on the net billed. Q. That is the result of your agree- ment with Mr. Lasker? A. Mr. Al- bert Lasker. Q. What was the function under ~our arrangement with Lord g: Thomas as to their duties and obligations? What were their functions? A. Well. Lord & Thomas maintained a vmv extensive copy writing staff and art de- partment; thev have a series of execu- tives who are competent to deal with most questions that develop from ma~- ters involving institutional advertisin,_, to matters involving direct brand ad- vertising. Their entire staff is at ore service, and when a policy is decided upon as to what we will use in the exploiting of our brand or brands, ~c tltilize their functions in the develop- merit of advertising of all sorts, and the development of what I consider more important of all these pictures. the matter of what is said, what I term in the medium of radio advertising our commercials. Q. To whom is money paid hv tlw PItlNTI';RS" INK /or ,\otere~her 17, 19,'t8 : ::~: space, newspaper, mag- :~:: : .:;! such things? A. At present :~: i~ ":~ I ord k Thomas, the adver- ~' '.':! :i:ev see that it is paid to ti:... >~: .:.aEion? A. They do. t~ ~ ,~ .... really hold your money i;1- : ,. ptlrpose of paying for the :~,! :: .:.:::ent which ?'our product gets? cL :L~ r'e!ation to your relationship ]~,.: ~ .~: Lord ~ Thomas and ?'our com- ~J'~" ; z!:<e any opportunity pre- • ::: , iJrd ~. Thomas to examine {:" • :F !a~lqness to learn ?'our busi- ~ ...... },ictus to give time to that? .\. l}. ,, -z-,end a great deal of time ,!.: . : .: Their men are con- ,: ,:;.!na with our people alt :!:c " *'. r:-om our buyers of leaf in r!-i::'. ,,:" forty markets down South, ti.a J q~ ::c,ugh the factory produc- i!,,=~: :=;~d there are men making trips ~,i,_!: ,,,,,.saiesmen to keep themselves i:~,,~:m.', a* to the developments in c}_ r.~ ~,,ur relations with Lord g: t!:~ . , t!:ere placed upon them an~ ,!,.ii:~::c ,,t:,!iaation to create new ideas? .\. "c. <r: they are constantly urged r,J , !;.:it{: I;e'.', ideas. " ] :!zc:e an,,' obligation placed ~':', ' it:m as to that? A. No, sir; r ~ :~.q,l "...ill show as I stated mod- ,-',~1,.. r:c,. -'a~ed in a paper they sent m:. ' . ,,'.: cr day that most of the '., :>e'. required to? A. The ' : ~ :,'ice ~ou find in some in- .:=~ .. :Izcv did? A. Yes. ' :;1 Inallv instances o[ ~.OtlF , i-::_ '.OU have presented and :, .: "i'.e ideas, is that correct? -- ; :.:m~ination by Mr. Rivlin !2!. Mr. Collier, Jr., came t.r_ !a the spring, you said. of , , - 5~'~ sir. :' . . 2:is father had spoken to ',' : ' ~: { to your assisting hint :: : ~:z ,~,mething about advertis- i:~el- ~. /cs sir. ,Plen he came down to 95 i!ii~!ii!~iiiiiii~i 81" R0"1 0350359
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see ~ou ill the spring of 193.t you had some talk with him and you gave him this book, is that right? A. Yes, sir. Q. You testified here today that you wrote that book so that your associates and conferees would have the benefit of your experience in that particular phase of your business, is that right? A. Yes, sir. Q. That was your object and pur- pose when you wrote it? A. Yes, sir. Q. You started in the tobacco busi- ness in 19o7, is that right? A. No, sir. Q. What year was it, please? A. I think it was 19o4. Q. ~9o4? A. When I left college in my junior year. Q. Then you ~orked for several ;,ears, did you, in the plants and dif- ferent factories of the company? A. I was in Wilson, South Boston, Dur- ham, Danville, and again in Wilson. Q. VChen was it that you first be- came actively engaged in the business with your father? A. I presume you mean the sales end? THE COURT: NoW just a minute. When the defendant went into these things on direct examination I ter- minated it. I cut it short. Now, why do you take up the same thing? That has no bearing on the case, and when, as I say, on direct examination there was an effort made to go into that I indicated that we were not interested and we are not a bit more interested now. He has had a long long experi- ence in the tobacco business. There is no question about it. MR. RIVLIX: I am sorry, your Honor deters me. I am referring to t9t7. THE Coua'r: No, you were back to t9o4 just a minute ago. Ma. RP,'Hx: I didn't think in t9t7 tiffs wimess had extensive knowledge in the advertising business. T~m COURT: I thought he had taken too much time in direct examination on these very old matters, and there is no need for you to take more. Q. He came back to you then two or three months later with this hook, is that your testimony? A. Mr. Collier, Jr., yes. 96 Q FrOlll time to time Mr. Collier, Jr,, solicited )'ore company for busi- ness? A. He had never solicited busi- ness up until that time. q. Mr. Hill, Mr. Witzleben came with you in 19o8, is that right? A. I have said that blr. Witzleben came with me with the firm of Butler & But- ler. I think that is correct. Q. And in t93= he was the adver- tising manager, is that correct? A. Correct. Q. You remember receiving a letter, do yon, from Mr. Griswold? A. No, sir. Q. Do you remember your discussion with Mr. Igitzleben regarding Mr. Griswold? A. I didn't even remember Mr. Griswold's name. On my exam- ination before trial I had to ask the name of the gentleman who was mak- ing the complaint. Q. l~gas it your testimony at the examination hefore trial that you didn't remember whether the name Griswold had been mentioned or not by Mr. Witzleben? A. The testimony will show my recollection is that I never remembered the name and that Mr. Witzleben didn't mention the name in the interview that he had with me, Q. The m-cent cigarettes had been on the market you testified since 193o? A. I think it started then, Q. And you were besieged with ideax for to-cent cigarettes, is that right? A. I was. Q. And would those ideas come to you directly or would they come to someone else in yot r organization, do you know? A. They wot,ld come from all corners. For instance, my vice- president in charge of mamtfacture, Mr. Neiley, was very anxious that we put on a m-cent cigarette Q. And be received your opinion and advice that yntt were not inter- ested, is that right? A. He did. Q. And Mr. Witzleben came to you. I suppose, and other people, with ideas that you present a m-cent cigarette all of which you rejected, is that right? A. I wouldn't know whether Mr. Wit- zleben did that or not, but all ideas !'ItlNTEItS' INK ],;r .\or'ember 17, 1'218 ii~ [iiiiiii[[[ = RJ';'{O'I 0350360
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2 ° that were suggested to me I rejected. Q. And do you know whether or not Mr. ~Vitzleben discussed anTthing other than a lo-cent cigarette when he came into )'our office? A. I know ~ery definitely that he discussed only what I have stated• * * * Q. Someone did make mention to you about a lawsMt in ~935. That was some outside party that spoke gen- erally, I take it, is that correct? A. I think what happened was that I re- turned from Europe in 1935, in Sep- tember, aim Mr. Hahn went to Europe iu October, and Mr. tfahn made some casual mention of the Griswold suit. In any case Mr. Lawrence Hilt came in and had a discussion. Q. Lawrence Hughes? (Editor's Note: A reporter for the New York Sun) A. Hughes; excuse me; Hughes: Q. But all of that was casual? A. Correct. Q. There was no mention of the de- tails or what the case was about or what the daim was? A. I think that reference to the article will show that Mr. Hughes interrogated me as to whether the idea of animated cigarette was new a~ld I said no, and whether the idea of solace in tobacco was new and I said no, and referred to some use of that thought many many years ago. At my examination before u-ial 1 re-read Mr. Hughes' article and sub- stantially Mr. Hughes reports the con- ~ersation we had. Q. Did anyone make mention to )ou when you came back front Europe in t938 about the cigarette "Buddies?" A. OMy insofar as I was advised that this case was coming up. Q. Did anyone, make mention of the name "Buddies" to you? A. Yes. Q. Did Mr. V¢itzleben discuss with you the advertising Ceature of this idea that had been submitted by Mr. Griswold? A. No, sir. Q. Did he discuss with you the use to which you could put this matecial which Griswold had suhmitted? A• No, sir. Q. Did he discuss with you the use of the name "Buddies" or the word "Buddies?" .k. Yes, sir. PItINTERS' INK loy Norember 17, 193S Q. fie did? A. 2"0 the degree tha~ 1 ha~e described. He said, "Someone suggests that we put out a new ciga- rette to sell for to cents and call it 'Buddies.' " To that extent he dis- cussed it and no further. * * * Q. Mr. Witzleben would receive new ideas and new suggestions from vari- ous persons and various advertising agencies for the advertising of Lucky Strike cigarettes, is that correct? A. Perhaps. Q. Don't you know? A. No. Q. Did he ever discuss any of them with you? A. I have told you of one that he talked of. Q. Before discussing any idea with )ou it was your practice, wasn't it. that he would discuss those matters with Mr. Itahn and Mr. Riggio? A. tie might or he might come directly to me. Q. Didn't you testify in your exam- ination before trial in substance that that was the practice? It was from Witzleben to Hahn to Riggio to you? A. Or he might come directly' to me. Q. I believe you testified that you were the only one who had authority to accept or reject a new advertising idea? A. Finally. Q. And you also testified that you would have been very glad to get any suggestion from Mr. Witzleben? A. Yes, s~r. Q. Was that part of his work? .k. It is part of everybody's work connected ~ith my company. I talked my busi- ness over with all my people. I am very glad to get suggestions [tom any- body, from a boy on the bench to vice- president. Q. And if you thought it (an idea) was worth discussing, with whom would you discuss it? A. Mr. Hahn and Mr. Riggio in all probability. If it had to do with manufacture or with the production of merchandise, natu- rail}', with Sir. Neiley, our manufac- tttring people. Q. And if it had to do with adver- tising? A. Mr. Hahn or Mr. Riggio or both. Q. "~Vouldn't you discuss it with Mr. Lasker or Mr. Hackett? A. Yes. You 97 035036 ?
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• .. in the Hiring of Brains Life-blood of tile advertising agency is Brains. Brains attract and hohl clients, beget profits. Brains not only for today's creative work but also Brains on the way up for tomorrow's. Rarely will Brains be found job- seeking. But rather employed somewhere, busy and happy in doing a good job. Brains can be reached and ap- proached for the job.--Through an advertisement in Printers' Ink. Nowhere else could you begin to "tap" the Brains em- ployed in advertising and mer- chandfising. Because nowhere else do Brains find so much of interest and of use in their daily work. The high selectivity more than justifies the small cost of this method of making additions to the staff. a~kcd me lust ~ho I ~¢n,ld tli~tuss [t with. I discussed it with Mr. Hahn and Mr. Riggio, nty own people. Q. And then you would discuss it with Mr. Lasker and Mr. Hackett? A. Yes, Mr. Hackett at that time and Mr. Lasker at that time. Q. You discussed the matter of this campaign, "I am your best friend?" A. I followed exactly that procedure. Q. You discnssed it with Mr. Hackett and Mr. Riggio up at the Cloud Cluh? A. I first of all telephoned for Mr. Riggio and Mr. Hahn. I sent for Mr. Hackett, of Lord g: Thomas, and he came and Mr. Riggio and Mr. Hacken and I ~ith the Colliers discussed the matter at the Cloud Club. Q. And it was then that you have a distinct recollection that Mr. Hackett took one of these exhibits back with him? A. That is my recollection. Q. And Mr. Collier or Mr. lhnen took the balance with them? A. I be- lieve so. Q. And these different organizations then went to work on this campaign. did they? A. Yes, sir. Q. And that was some time in the early part of December? A. I wouldn't be accurate about the month, but I think that would be ahout it. Q. From that time on were you ac- tively engaged in the preparation of this campaign? A. Very. Q. And how often did you partici- pate in these conferences? A. Almost daily. We were in the midst of the development of campaigns. Q. Do you remember when it was that the first material was published? A. The record will show. I couldn't say. Q. Do you remember distinctly that the contract was signed between you and the Collier organization in your office? A. Yes, sir. Q. You read that contract before you signed it? A. Yes, sir. Mr. Hahn read it before I did. The way the con- tract came to me, as 1 recollect it, it came from Collier to Hahn and Hahn brought it into my office and I was surprised, as I have said, that there were two contracts, and Hahn called i~iiii!!iii~i!i!iii!~ t)~ palNTEI~S' INK for November IT. 1938 i ........... Iql',' 01 0350362
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my particular attention to the clause referred to. Q. Well now, you have said that there were two contracts because there were some complications in the Col- lier organization, is that right? A. Yes, sir. Q. But you didn't know what those complications were at that time, did you? A. I don't now. * * * Redirect Examination by Mr. Whiteside Q. Mr. Hill, in the questions asked you by Mr. Rivlin here as to whether you had given certain testimony be- fore trial as to "I am your best friend" being a different campaign and then your answer to the question here, will you explain what you meant by differ- ent in the sense that you used it both in your testimony before trial as well as here? A. None of the elements in this campaign of Barton Collier's was either of itself or in conjunction with the use of other elements new. It had all been previously used by ourselves and by competition. I felt that at the time that Barron Collier suggested this friendship idea in t934 presenting some of those parts that I displayed there, it was particu- larly timely. There was a great deal of unrest. People were looking for friends, looking for help. I thought naturally it had a real appeal at that particular time, and when I say that it wasn't different, it wasn't new with us, [ refer to the fact that the ele- ments were previously used by us and by others. When I say that it was new at that time I meant that we changed at that time from the appeal perhaps directly of the attributes within the cigarettes to the attributes of friendliness, but we maintained the attributes in the cigarette throughout the series of the advertisements. Some cards w'ill have it in and some will not. But a survey of the campaign, "I am your best friend," will show that we never have deviated from our principles of Lucky Strike as they are enumerated on the back of that pack- age. We were the same man when we P~INTEI~S' INK lvr November I7, 1938 Picture of a T. B. M. trying to un- tangle conflicting interpretations of the new consumer purchase survey by the Departments of Labor and Agri. culture! CLUE: Don't be confused by reckless interchanging of terms "upper half" and "'upper income groups." (Upper half actually buys more only because it contains most of the biggest buying group of all, the $1000--.~2000 income group, ,which most innocent adrertislng course diploma holders usually call "lower income groups!'; Send for the digest to end all digests, "How to Sift the Wheat from the Chaff." /lddress, True Story Maga- zine, Room 1612, Chanin Building, New York City. _PRODUCTION_ • ENGINEER • Your production costs can be sensibly lowered. • I have developed a system that eliminates much guess work regarding final production cost. • 9~4 years of agency pro- duction problems form the background of this system. It is pr~tctical ! Z Box 192. 99 ]" ,'.qO "! 0350363
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~,i TYPE COSTS INI GOOD TIMES OR BADJ Thai is ~h, hundreds of a~endes, manufac- lurersand prMuttior, departments are usim] FDTOTIP E to cut costs. With FOT[J- T Y P E h'pe lines am ~uiclily. econumkally set Tel the methM is m simple lhal yeur office b+T c+~ be Four c~'n~osil~2r. Write TO DAY for ~tal~ demmtstmtk++~ the FOTD~+PE s'~ste~ Over rio diLrel~at faces available-scripts, r~;erses etc. Fololypl Co. 6~W.W,,hi~'-o.n,(hk.,,g.o ~k~ eK~te acl cempoaed w|lh J'ototype, 351 Turk Street San Francisco Is the Address of the New Branch Office and Film Exchange Y.M.C.A. Motion Picture Bureau Providing Guaranteed Distribution to Consumer Audiences Industries desiring to reach consumer audl- ences with their film sales message should apply direct to Y+M.C.A. MOTION PICTu~z B,,Jm.P+Au,347.MadisonAve.,NewYork, N,Y. . New York - Chicago- San Francisco I00 ~ct tO Kan>a:-; (lit) aS X~C +~C+le ~xllcil ~e get to New York+ Q, Well, had you had a pre~ious campaign where you made the chief motif the idea of the center leaf? A. Yes, sir. Q. AmI that center leaf campaign had run some time? A. Yes, sir. Q, And in that campaign you had a display of center lea~es in this form (indicating)? A. Yes, sir. Q, In the center leaf campaign did ~ou eml:,hasize the fact that there is :tit a,~sociation I)etween the title Celtt,t'l leaxes and the mildness (ff the smoke} A+ We emphasized the fact that the center leaves taste better. Q. Then in the "I am ~otn best friend" campaign )ou tied into that campaign reference to the pre,.ious campaign? A. Yes, sir. Q. That is what you mean that you ahvays go back and take forward some of the residuum of your pre~ious campaigns? A. Yes, sir. Q. Likewise in this campaign you continued the practice which had been very common in the past cam- paign of featuring in some point or other the package, the distinctive package of Lucky Strikes as appear~ in these window displays, Exhibit 63. the Lucky Strike package? A. Yes. sir. Q. With the words "It's toasted"? A. Yes, sir. Q. Also the center leaves? A. Yes, sit. Q. And isn't the newspaper part of that campaign in differet'~t stage,, rather complete with reference to the center leaf campaign? A. Yes, sir. Q. And also the expression that :ou had used in previous campaigns, "'It is the tobacco that cotults," you used that? A. I presume so. Q, In other words, in the past haven't you featured in your adver- tisements the quality of your tobacco. that you buy the best in the market: you speak of that in your advertising? A. Yes, sir. Q. And you carry that front time to time forward? A. Yes, sir, do it today in a different way. PRINTERS" INK lot N~cmbet I7, 1988 i,~~ ~,!:~ , i iiiii~iiiiiii~iiiiiiiii~i~i~ I++LIIL~IIIIIIIII + i~ii~ ~ ~:i~iiI ii~ ~Liiiiii!ii+iiii+++::~ F/I:~O "! 035036&
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Q. ",P,hilC it might not be in every in,ertion of the advertisement that you carry that forward, but in the run of tile advertisements, is it not your tes- timony that you attempted to carry that idea forward? A. If we carried the same thing in every adverti,~ement obviously it would become monot- onous. We try to approach it in a different way, but we try always to have the same quality thought of our product, so that our product develops confidence in tile public conception. Q. Did )ou at any time after the conversation you have related that you had with Mr. Witzleben regard- ing the lo-cent cigarette called Buddy, have any conversation with anybody about that, with Lord & Thomas or with Mr. Lasker, anybody connected with that firm? A. Never spoke about it to anybody. Reeross Examination by Mr. Rivlin Q. Do I understand correctly that xou never spoke to anyone about Bud- dic~ after you spoke to Mr. Witzle- hen? A. My recollection is that I div- mi.~sed that suggestion for a ~-ccnt cigarette completely from my mind from that day on. Q. Now, Mr. Whiteside has asked you about the bottom line, "Luckies use only the center lea~es"; that is a slogan, "They taste better?" A. I don't know. Q. Isn't that important, that which is set out? A. Yes; but it doesn't mean it is a" slogan. Q. Now in this campaign )ou told us you had a first rmt and a second run, is that right? A. We had t~o series of newspaper run~. Q. In the second series you elim- inated your expression "They taste better," you eliminated "Luckies use only the center leaves, the center leaves give you the mildest smoke," didn't you eliminate that? A. I would rather see the copy. Q. You just answered Mr. V,,'hite- iililI Demands Create Demands Demands create demands in building. Demands created air condition- ing, and that, in turn, resulted in new types of insulation and fenestration, lighting fixtures that incorporate outlets for conditioned air, windowless buildings of glass brick, etc. Thus building design is constantly changing. The architect, in order to keep abreast of the rapid developments, needs a specialized, efficient maga- zine devoted to his problems.., aml their solutions. For this reason, Architectural Record is his choice. More active archi- tects and engineers read . . . and prefer . .. the Record than any other archi- tectural magazine. For advertisers, the cost per thousand is the lowest available. "Demands Create Demands" is one o~ the many sub- .iects discussed in "The New Building Market." Published by Architectural Record, it is available on request. ARCHITECTURAL RECORD PUBLISHED BY F. W. DODGE CORPORATION PRINTERS" INK /or .Vovetnber iT, l~$S 101 "I 0350365;
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This Sales Promotion Man Does a Complete and Practical Job H E has been a successful salesman, sales manager and advertising man- ager. • Because he has sold and directed the selling efforts of others, he can plan marketing campaigns in their entirety, and make them work. • Because he has developed success- ful ways of dramatizing various products; and because he is a skill- ful analyst of correct media and methods of advertising he is capable of doing a complete and practical sales promotion job. • Harvard graduate. Age 41. Now employed, but has sound reasons for desiring a change. • An interview can readily be ar- ranged. Please address "Y," Box 191, Printers' Ink. PRINTERS' INK says "AN EXCELLENT BOOK discus~lni~ letterhead design from every angle~" Over 115 Illustrations give you as many su~ge~tion~ for YOL'It statio~ery. LETfERHEAD DESIGN AND MANUFACTURE ~y FrederteR Scheff also te&ches you g unhluo arid prodtab]e approach tO lettering Ill advertising. SEND FOI~ FREE BOOKLET THE FREDERICKS CO., 68 Nassau St., N.Y.C. MARKETING SERVICES My" marketing knowledge qualifies :me to assist manufacturer, advertising agency, or puhllcation in coordirtatng sales and mar- keting plans with sales promotion activities. During past six years have served promi- nent natlooal advertisers. GERALD FRISCH 881 Washington Avenue Brooklyn, N. Y. CAUTION! Applicants for positions advertised in PRINTERS' INK are urged to use the ut- most care in wrapping and fastening any samples of work addressed to us for forward- ing, We are frequently in receipt of large packages, burst open, in a condition that undoubtedly occasions the loss of valuable pieces of printed matter, copy, drawings, etc. 102 f side without looklng at- the copy. You .said that was carried through in your newspaper adverti~.ing. A. I didn't say it was carried through in every piece of copy. I say that the general idea was carried throughout the cam- paign. Q. In other words, in your newspa- )er copy when you had the second run of this campaign, you had the "I am your friend" and "Never let ybt, down" and the other copy was mini- mized, is that correct? A. I wouldn't know unless I saw the copy. Q. (Paper handed to wimess). A. Yes, sir. Q. And if you will turn over to the other side, I think that shows in July you did the same thin~. A. Yes. sir. • S • Judge Patterson's charge to the ,ury, ordering a verdict for the de- fendants, follows in full: Mr. Foreman and jurors: The de- !endattts have moved for a directed verdict in their favor and I have de- termined to grant that motion, and I will tell you briefly why because you have listened to the case for some days. It appears from undisputed evidence in the case that the ideas, which the plaintiff claims were not only unique with him hut which ~ere as he says appropriated by the defendant, were neither novel nor unique. Previous advertising in the same business both by the defendant and by other companies merchandising cig- arettes had had the cig-arette speak as a person would speak and had the cig'arette speaking in a personal way at times or in situations of romantic or dramatic interest. For example, the Soverei~ml cigarette in 1917, which was the defendant .~merican Tobacco Com- pany's ot~n advertisement, had had the Sovereign cigarette imagined as a per- son speaking and had said. "Let tts be [friends" and "I will never fat[ you." Novt, the idea of the advertising plan submitted by the plaintiff to the defendant was in the name, the idea of a new marketing of a m-cent cig- arette to be called "Buddies." That. PRINTERS" INK for No~ember 17. 1~38 "i 7 81":-~0"1 0350366
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] of course, the'defendant never copied or adopted. The plaintitt's claim comes to this: that in the advertising copy submitted by him to illustrate the suggested advertising for the Buddy cigarettes there were certain expres- sions or certain situations pictured which could have been adopted and which he suggested might have been adapted to the advertising of Lucky Strike ciTarettes. Those expressions or Rinse situations in those advertisements ~,ere not in any genelal way unique. They had been used before, as I have already pointed out, in the idea of a cigarette talking. That was not unique, although he said it was. He was mis- taken in that. It was an old idea. The expression "I will never let you down" which appears in his suggested advertising copy had ill substance been used by the defendant itself, where it had the Smereign cigarette say, "I will never fail you." So that the de- fendant had as much right to that ex- pression for use in advertising cig- arettes as the plaintiff did. The expressions "I will never fail you" and "I will never let you down" are, of course, synonymous in a very common wav. There being, therefore, in my opin- ion no novelty or originality in the plan on the undisputed evidence, I di- rect a verdict for the defendants in the case. You are dismissed with the Court's thanks. The decision of the judge, shortly after Mr. Hill left the stand, came as a surprise to both parties. A poll of the jurors following their dismissal, without an oppor- tunity to voice their opinion, showed that the five women favored the plaintiff and damages for a sub- stantial amount. Most of the men said the Judge's decision was the way they would have voted, though one or two might have offered some minor changes. While no definite action has been taken, it is understood that plain- tiff's attorneys contemplate an ap- peal to the Circuit Court of Appeals. t'ItINTERS' INK l~r November 17, 19a8 Reactions of the Advertising Manager of Hispano-Rolls Motors, Ltd., upon being told why the"upper half" buys. more than the "lower half." (.4ns~er:. Because, believe it or not, the B lt~t~,r half contains, as the population's big- gest single buying group, most of tl*e $1000~$2000 families,r) For far~er facts, ~¢rite for "'How to Slit the ~t~eat from the Chaff." Address, True S~ry. Magazine, Room 1610, Chanin B~ild- ing, New gorl City. f THE LONE RANGER IAM a trouble-shooter for anything in the range of distribution. You engage me for a limited time. I analyze your marketing program. F/rid out where you can make more mo=e.v. .blake recommendations. Leave. Avail- able to only one client at a time. Marketing Consultant "A," Box 200 Printe2-s" Ink .-,oCOPY WRITE Special short course L~ co¢~ wl"lttng; slmD~ e:~,-ragh for beginner~, valuable f0¢ professlontLL E~zfi_~ rompleted ha ipare time. ~lio complete 40 le*~m course in copy, layouzs, publicity, raddo t~d ~2! bran~:h~. Wrlta for full details of eit~e.r or, .~,:,.~.~ DEREK WHITE, 404 W. M. Garland Bldg., LOS JI.IIGE]~ 103 fqT,'gOl 035096 7
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PRINTERS" INK A Journal./or Advertisers Fou,tded 1888 by George P. Rotceli Johtt Irvitto Romer, Editor and President JgOS--J933 PRINTERS' INK PUBLt$1IING Co., INc. 185 ~,IADISO.Y Av~.~vz, NEw Yo~ ROY DICKINSON. President DOCOLAs TarLOP.. Vice-President RICIIARD "~V. LAWRENCE. Secretary G. A. NICHOLS, Treasurer and Editor C. B. LARRABEI~, Managing Editor R. W. PALMER. AssOCiate Editor ARTHUR H, LITTLE. Allsociate Editor ~I. W. ~[ARKB, -ngr. Readers' Service Editorial Og~Jces Chicago, 6 North Michigan Avenue : Andrew M. Howe, Asscuiate Editor; P. H, Erbes. Jr. WashlngtoR.6C9 Carpenters' :Building: Chester .~t. Wright. Advertising Officer ChleaT, O 6 North Michigan Ave. ', Gore Cempton. Mgr. St. I,ou£~ 9 i ~ Olive Street ; A 1} McKinney. Manager Atlanta 1722 Rhodes-Haverty Bldg. : H. F. Cogii[, Mgr. Pacific Coast San Francisco, Los Angeles, Seattle, Portland V.'est,Holliday Co. Inc.. Reps. Subscription rates: $~ a year. $1.,~0 st% monthi. Canada $~ s year. Foreign $5 a year. Monopoly? Not Here Thurman Arnold, Assistant At- torney General, says that advertis- ing fosters and builds monopoly. How about the story of the Amer- ican Tobacco Company, which is related at length by George Wash- ington Hill (under oath) in another part of this paper? When James B. Duke headed that organization he had, Mr. Hill says, the following: Ninety-two per cent of the coun- try's cigarette business; Eighty-odd per cent of the smok- ing tobacco business; Eighty-odd per cent of the plug tobacco business; And of advertising he did little --almost none, relatively speaking. But how was that for a nifty lit- tie monopoly even though adver- tising-Mr. Arnold's pet peeve-had practically no part in building it? The corporation was dissolved, and separate companies formed. 104 What do we see now? Mr. Hill's company concentrates on cigarettes. Other companies do likewise-or otherwise. And, on account of competition, there is more cigarette advertising today than in all business history. Monopoly then-built with adver- tising as a negligible factor. Free competition now--and ad- vertising mounting far into the millions. How about it, Mr. ,Arnold? / anda: Two Kinds Jn an address before the Ad, g Club of New York last • al Hugh S, Johnson em ti- charged that the study n be- by Senator O'Ma ey's National omic tee is nothing tool )r less than a tch hunt design( make further )uble for busir The d, General ha ~ quarrel ~yith the Commit- tee as Americans. He questior integrity nor their 3ns. "But," he with much vigorous n the luncheon table, "they h been so thor- oughly taken ir the anti-business propaganda o New Deal that at present see only one side of the Business had better get ~pread some real In the mluding se of the above we be- lieve, real ho .'n a bit of he. If the New eal util- izes anda in its terious effo create sentimen what is there to '.vent bl ess from employing tht ame ns in its own defense? Johnson may be c ct his witch-hunting charge. His PRINTERS' INK for November 17, 1938 _) : ( F11" ,:-{0 "1 0350368
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' 't tq]',:qL '1 0350369
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oO~-om,~. * SEP'f~BER 1938 t62,000,000,000 Bv \VIRT I-l. HATCHEI{ NO ('LNL c,:', :L]I ht>~ .tncLent i.~ d L ,:,,- ,~r :,)~,:g, but the ~ garc~re i~ ",.1,i '-O [:,P.v :'~'_= .ic,,~]opcd duriit~ the ( rirr:c.m '&zr TZ~ 7crkish ~oidiers couid (l'l[ ~t I3t~rltC::: ', ¢f'Zu~<e fhc[r native aro. marl~ r,!.a~. :: -::.:: narghiles or hookah5 ~F/Ft., .x<:: .:,n.: ::=xible stems. ~o ar- V [ gl ~Cq :~l ~ ~Ze ":77[ ikic 'S ¢OO]et~ b}" [~SSing :itr~;ti:2h ".v iH_rl , 11;~', ',\ rapp.d It in [ht2 F~['er it: ~ntc:: :::c:." po~&-r came. The hh.'a ~,,~ r.~piJ?, ~coF,,cd by other troops. The name t~gare:',e, or little cigar, ,~.~s St~en by the Fr, nci: UnquestionaNy. aglr~ucs are tile most convenient and mildest form in ~q~id~ SEPTEMBER. 19:.s tobavvo is ,onsumed. Only the tiunnc: milder :/D-s of ~obacco are used in dc.~r- tees. and if no more than }1.1it Or "~::z cigarette Is ~moked up tile remainder a,> .v~ a filter, absorbing a considL-rabte amount of the tar_, and alkaloids ',~hkh arc nor burned, but are contained in the ,m-kc "['~ the mildness of the cigatre~e ,mq i:. consequent rapidly mounting FOpularw: is largdy due the de'.dopment or one ~Ji :bu.lm:*. Manager and Manaycr ,4 d~¢- I_~ai [)v],arlnmrl~. Phthp Morri~ & Compare, LtJ lnc. Racim~ond T~w ptmmgraphs are ,ff oh= Richm.nd ,,pera- n,~ns ,,: Philip M-tri~ & Compan,., l_td Inc. The story of a great Virginia industry in word and picture our great industries. With the possibib exception of the automobile and the radio, no other industry has had a more rapid evOItltlOn. \VHEN THE FIRST CIGARETTF FALT(~RY ~as _~tarted in Richmond. cig~rcue~ w~.re rolled by hand, very exFer~ handrollers SOli1etlrn~.s doing 2,000 to 3.00(1 a day. Today, with efficient high-speed madfincs, 1,500 cigarettes a minute is possible. The normal produGion is approximately 1,250 a minute-, which means, under pertecr con- ditions, more than 6Oq.OoO agarettea a day, employing two people on one making machine, But for this rapid advancement, the average ~moker would find ready-made cigarettes out of his reach. ]n tile old days of handmad~ cigarette< there was at first no tax. then one and ore.. half cents per package. Labor was cheap. and ~o was tobacco, Today the tax alone on each package of t,aentT cigarette's i~ six cents. In the last thirty }'ears ,rages of the cigarette workers have quadtnFled and the number employed in the indusm" has in- creased an even greater number of times, until, in the manufacturing industU alone, not including the handling of the raw leaf, there are around ~5,0eO peoFh employed. Virginia empIoys apFrox~marety 8.t)O0, ranking >econd only to No=h Carolina. This gP.'es no consideration re rhone em- ployed m printing, foil makme, cigarette- paper manufacture, and ~<het kindred fidds. There is a large production in these fiche m Virginia for u,e in ovher states. \Vhde a few year~ ago much x~as said of the harm that came from cigarettes '*hen used extebsivdv. Sir lame~ Barrie , i*mg ume ago ~poke of ;he >olace of ,ba¢co. and in the Great \V~r -no ,oldicrs -,[~C'A II0 ,,:'rearer {omfc-: ManvFe.~F[,~nave~u Jca i'ncmnntc :'dlll~ trial ~¢tt~n.~[,,~v rra.::t:_~: ',17~.[i i~-C -[kC[1 :L~[:,ikLO Ill orcL: -':..r ._~, I]l.i) ~.[ t~L:rettu> m ~ood ~on,11:l<n ,:%l ol dnl- ror;n ~!a : or ,~.FTF]'I TItF IFAF ~1 5" - ~. • " L! ] IItE tonacco m bogshea,~s " rc:~..:n. :n ~cL[- ",cOtl]atLd watellouv_- :'~" "eL, r-: ~O;_-- ~Or~ !I ~ intrl)dklCU~.] 12 -r-c" :" ¢~" " 4~ c.1Ch roE ~drl~s. in ordcr ", -- .... :th I~,t/~g- :ha: blctld manulav:..: -- .=r: kt lca,~ :nrcc crops )f tobatvo ,2~a,.~L.I',.V 'xorKir1~ n tile ncv.e~t crop .1- :he ,).,ar-,t ~ :x- [lausted. SO tnar in ',oUr vldaretze ~,ou have a blend o( >evcral trots o," ,'no :-.an'," Amer- ican market types, such as BrigM \-*rgmm. (arolina. Georgia. Maryland. Kentucky, 21 @[ T,','40 "1 03_'5.03 PO
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,~[el~lmeTs 7"he midrib of the tobacco leaf is rem,,ted by a stcmming machi~ze. Staffed ba tbirt~- o)le uorkers this machine ~tems a t,,,z ,,¢ tobacco et'¢~r~' ~our ¸¸:;ill::¸¸¸ ~;il;il , ,1717~,7!~ 22 THE COMMON\VEALTH fl'F,'~O'l03503 ?'I
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and the highly aromatic tobaccos from Turkey. Gree~e. Ru~,sia, and Syria, blended thoroughly and produced in air-condi- tioned factod¢, x,.ith til~: proper moisture content m the tobacco and kept there by the use of cellophane, one of the recent great improvements iv, the industry. T,.,bacco ~i~en packeJ in hogsheads con- tat:> a large midr:b or w-in ~hkh is kno~ n as the stem. In t't>: first manufacturing operation the" >tern is rcmoved by a most ingenio,a, madras: x~ ixich pulls it out wkh .flmost unbelit'~abIe rapidib'. The Turkish Icarus are so small that it is not necessary to stem them. Some ot them are only the size of a man's thumbnail, Those from the top of the plant have the very finest aroma and sell for a~ much as 53 a pound. \',:'h¢'n the tobacco comes from the ware- house i'. is dry. and ~outd keep indefinite- Iv. The first moi.tening process, to pre- vent ~.he tobacco from making scrap is ac- complished b) a ~erv recent Richmond invention, ~hid: de:s m twenty.five min- utes the work pr¢~io.:>ly accomplished in t~n d.ws. Th~s~ machines vacuumize the ,'obacc,:, and after .~.H air has been extracted from the bus,hen J-, replace this with moL.t ~team and then ~.ooI it to the desired temperature-. The moisture, however, is rvtfin~d, so :h~: :ire !eaves are thornugldy pliabb. At the- <~m.- :imc, these machines eff~:ct~ely rum ~a:~ and ,terdize tl~. to- bacco ro~:!l Here- '~ !~.{~ a ~'rll<k ~ux ~t-,l/-o, m, atic TurkL, h :vc-.,,.o. h,.-r~: .~ bulk of t.m- co[orcJ, cho<ola:c-<::ciling Durley from K~-nt:~<kv..'.aother bulk ot Bright x/if :zmta a smal!vr Fib of rich brown, fast- burmrlg *[ar~L,n,i /.:rc{~l!l'< the~e are ~e~hcd out /,:::: .::-ua l.tvcr. ~ike a hous~.'a ire rare:r:; . (r!!l~..lk~. ~hcv .ire bh-n,icd :o~c:::¢: ~:~ .i mo~ing convmor ~bk!,. ;arr~.; :::_::: :q a later revolving ~;h::,icr lri.!u: ::..:,,v ['rc-s~!lre, ',O J<tr rrlc', {r~" iN.i.:[~;ii: : ~F</'tecd. gLZv}: r}.F~or- ~l\ :~ ill.£'r_.'.~L" - - .2~ II¢~ tTi.lpi~d >U~',!/', ,m~ 5(<it .;:,:. :...:: iaorke, er~. .,.re ~Fr.b'cd on t::c .irc, FFm~ k,e,cs .is :i~c'. ,g',rq o~:t or :k= .:imJcr. \Vblc still t~.trn. ~il~' ,ir~ 'JZ.~ ~'~70 a CU[~itl&' Ela(hinc ~ }lu i*, w i{'il "t, 72~.rk'iICg bck~, press }?c!:2 l/if<2 )t2F.L 78:?;i zaKc> trotll ~ }l[~_J~ the}' ,~rc dkud taro ~h- ,~i'.kau~,~a d~rcJs about ,me fix:tenth ,~{ .:a :a.h ~i,]<" g*h)~} ;I]CL,I :2. ,', i U'I;< *~ih> JD*~t!IC£ % ;Oi~ mS: ~}'bn,:c:" :;~c-c s}lre~:5:2o arid ;nee: ~k~ ~,mt:olk: Ec,r ~ir l-].~,ts ~hidx <]rive ou~ ~he ,~xte>> m,c:>curc ~o ~h,lr rhc Wb,lvco i~ m ~onJin<m t,~ 2:¢. untiJ ~r reaches }us. ]u_,r as ir pa,s¢* :run{ d~s drying cylinder it is sprayeJ m mo,r .a~es ~idt 190-proof SEPTEMBER. ;.~ ~,; CO~ONV,:EAL'IH SEP'iE2EEfi 197.8 Deft Z,,mds s,m-c~) t/~e s'em.ted t,,/),~c co [,,r .;tema a.d ?o,'~ qs,,~ m,~terial cigarette.;,>bacco s].vedr 2~ i ~ii i~ F kkliill <~ . ZZIZ 7~ ii!iii • ~iii~iJ~iiiii(!iiL i~ <iiiiiiiiiiiilt::ii I.'2~ "I" ~../r", 4
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Under normal operation the modern ciga- rette-maklng macbitte, tcitb tu'o attettda~tts, produces 600.000 cigarettes a da~. hrhz'4s read~,-made cigarettes tcit/,i~l reach "t tb~ dt'erd~e .~ttlok~.,r ~ d~~ (, :iiiiiiiiiiiiiiiiiiiiiiiiii~iill~ :~i!iiii~,, 21 THE (i 3,\I \[()Nx.k'E-~.LTH ,' fq !" :,,-,(Ci "! J'~ ":! ~r'~"~ ..'7.-z~
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pure ~'~ Eng;and rum, wh{ch a~.t~, :is ¢.JrrJ~'r ior ~ err volJtile t]avors, d~penJ, ing upon :he ~.]',oi~e of the manufacturer, x~hkh are m~xed in the laboratory v, ith tilL- utnlo-,: qe..recv, It is in th¢tse rooistell- ice and J£',m~ pro~esses, as well as Lhe combinat;on o~ :tavors, that chemisls have done great work. It is their job to see that this :obacco is kept with a veff closely o,ntrL: li~:d ~:v@.c<:re qontc-nt In dean. cvo[ rooms this tobacco is k~pt for se~_:aL da~ so that cach little shred of tobacco becomes permeated "*ith the iiavormg. ~nd :he combined aronl.t t~Lkes on .t F~_r[.:me ~'aceter to .I tnlha(co man's _.¢r>cs :h r :he ~qncst florist's shop, Af:zr ::7 :,:,r four days a new type of n!a<hir.e : .-.~> the cut tobacco and fluffs it c'p. a~ "he s.m:e rime clelning it with giant ;acdmt: .[ea.'*,zr5. so that when it reaches the lore: line c( making machines it would not s,~d a .ur.:eons hands. The delicate mcJ~.tmsm oi these almost human ma- chines <c, mbs out the tobacco anti ~'.in- ~lOX~ q tt ~en~l'~ OlltO a coHtilltlOuS strip O{ pure linen paF~-r ,~ifich goes along at 3~0 :vet per mm::e The paper strip is printed, :h,.n cle',.::", [orrned around the tobacco md .ca'.t : ::2¢:: .'_it off at d~c proper in- :L-r~a]< >o :7.: The P,.lllle of the c[g.lrette apt-errs ;n :.:.n ,me. linmaculate girls in ','.hhc n.::-~. _:nborms..ltl passed by d~e ;uc.!i.a[ .h.".:r::::cnt as being in pcrfe, t hc.t[.'h, ..t:~r: Ti:L%e cigar~.ttcs in large tra~', Wh~.~e ~ra;~ are pasxed on to even nlorc .omrlJca:t.: ,.-'aekJng mai}fint~. "I-}lese ran- dimes cot:n: , ~: exact[y ~wcnty ~igar~_ttes and i~ b~ :!:.:nee a bad dgarette is included i:', a pa.k:..v :n an uncanny fashion an elec~'ric.~] .::',:~c on the machine detects that F.~,:!... ~'~ .and ,!oes not permit it to go ,:,at ,, t:L := 7:::':~t packages. As it leaves :he g.~k:r'- -'.~hm~-. d~.' p.l~.kacc :~ ~(.I/E['u.} £L', :R£ :}',e gtl~ e{nlrle,qr ~rolT] 5~20 "'o 5" +> 7¢r minute per machine. The :-.1~k.!:.-4 :]':dn [IiOVe alon~ into ~he ,,, raFTer "., hkn ::early ,~ raps each p.~ka,~e in ceilepb.m~.-, read)' [or the carton which you buy ~rom ",'our retailer. Cc lopi~an< makes the :igare:tes keep' four times as ionia .z> [!i.'. ',v~lid x~l[il HO '~rappcr. or x,.l*h 2.- e::ar}i.:..nr :2}.lssJne :c:!Jl~ ou~ too ;tnu~!~ :::o~s:.:re. keeping m ht>t the rich: amount THE DiM ~,ND F~ ~R (.IG.~.RI/'IIES, IXCIPT d*.lrlng :he J~Fres~ion }'car~. ha~ been ~:eadih" inc.'easmE from just a few billions a year the first part of the ~.cntury until the record ~ear ending last July when the consumption reached the astounding tigure of 162,i)u0,000,000. Virginia produced more than sh.O00.O00.O00 cigarettes dur- ,rig rhl, p~'rloJ, and ffs percent.l.ce or" rhe total i> .tcaJiiy m~r¢'.is:n~. 5F..PTffMBffR i,~;s CO~O~;EALTH SEPZ~EER 1938 T/w packing machiue gires $ ._'3 to S,q.40 a m~mtte to tIw federal goe erum~u~ f 25 fql-;,',fO'l 03503 Pet
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ON lu>.~ 22. I'03S. the President re- q~fested the National Emergency (7dentil. through Lowell Mellett. its exeeu- ti~c- dir~.ctor, to prepare a statement of the problems and needs of the South. This task ','.'as undertaken immediately, and was aided bv the counsel of a dMtini:uished advisorT committee of re, ¢-nty-t,.vo Southerners• ~'ho met tv, o v, ccks later at Wash- ingron. On that occasion, in a ].,_rt,.-r ro tht- conferees, ,air. Roo'.c',elt made the st•uement, since ',~.ideIy quoted, that "the South ptmcnts right no',',' the Nation', No. t economic problem." "1 h~: refute on "The Economic Condi- tions of the .¢.outh" ",,.hlch "o, ent to the Pr~.siden: on luIy 25 does not mince words n~r spar:: :a,.ts. it is a brutally• frank re- cital of conditions in the South. bristling v, ith COmFarative statistics ~hich make startlin~dy clear the disparity in progress and in the u.e of natural resources ;is bt:- c~c~-n ti~ area anti the r~st of tile country. "l)lis ~s :r,ae notwitl~standlng the fact, ,is Mr Merit:: stated in his k~ter of trans- c?:::a[ to the Prc.sidcitt, that "the adL!aI ~:r:::l]~:.: O{ ti1~. tlftC<'n ~vctions Oi" rhc' r~-- i~,r: ',~x. :he ',~ork of 5out}lc-rners, inti- r:.;:~}'c :~ ,:~'.:Inr'.-d ,,xith their oxen rc~i~.)[t .:~;.! ,,~,: '.', <<:n~_-rned in ~ts ~ehare." (In t}:v- advIsoD," gommlttce ,.~i~ich as- >isted the Council ',,,ere these members identified ~'.i~h \'irginia: Colonel LeRov 1 t,.:,~i.:es -:ate ~omplroller ot Virginia and "o:'n~.r :::,~.r.~in.e director ot :iv,: Virginia <talc ( [-a:iqk~.: of (~mm~:rvc; A~,cx.~nder -;'car :urn:<: pre:,id~--.qt ~i the Virginia }~xSbc ."::~ :~e romp.m?, : and I ~J~t Ran !ol:?b \l. ,,on >{ ,~,rl.*l~.',. nati', c- ViLzin~an. : :.r'r:.cr::::'.:~ el{ [}'U ( v':~2!'itt~~-'t2 {or to- !. -771 i ~-._ :2 z.i~l~:l] The '\\'HiLE T}{~ R}'•P~ ski IS DISTINCTLY :h,,:::} ,:: u- :one• Nit, .Xlvif<:t qtik~.s a rate:: ::c:c ,;l !lope, I.)lSk~uik~ln.2 t.-~.t?non!l( ,on,:::loa5 :n :be S{;tleil. he told rtlu Pre~i- :_> .oi,, ~ ' ( ,,nrim~nK: ".s, nothtr thing r:!.t2:." .i~r i?OX:e,,~..r, is that th~.-rt: is no -i[lG'" ~ ,~! ;~:e;A "[71e ,,o[utiOn l'nll~,t be: parr :'Ci::{. ~]. '~ ',::'~ :t'~" tc,.~cta[ ~o'.ernmt:~lt [2ar- :ic~patm; along ',:ith ~tate• county, city, :,.:~,,~ u. and :o,~ nship goxernmcnt. But there ::~*.t b,- Fart~cipation aiso by industry. bv*sines~ and schools--and by citizens, South and North." The fifteen sections of the report are concerned ~itb (1) economic resources. (_') soil. (5) water. (4) population. (5) pri~ate and public income. (6) education, 2(; (7) health, (8) housing, (9) labor. (lO) women and children, (11) o~nersbip and use of land. {t2) credit. (13) use ot muural resource-,, (1:1) indusen', and ( 1 .'5) purchasing power. As used in the report "the term 'the THE SOUTH Nation's Problem Rc,'ietced by WILLIAM B. SOUTHALL Southc,tst' includes the states of \'irginia, Kentucky, "l'cnnessee, North Carolina. South Carolina. Georgia. F~or:da. 2tin- baron. Mississippi, Louia~ana an.: _'~rkan- ~as: the 'South~est' means O'.-:]ahoma and T,:xas. and "The South' covers all the thirteen states," Only in a few instances are individual states called bv name. The National EmergenQ" CouncH+s re. port i~ a composite picture of ~ond~tions which obtain in the South g=ne:a;ly. For thi'~ rea,~on its findings do no," ha',: full ap- plication to Virgima, whtck ::nks in ncar!t' ~vcrv ~articular ~e;i .b-:'~c the a,.cr.l~.•e Of the South. .~-. .> 2r2eraltv kno~ n. for exarnple, Virg~:::a :s ~7.her in ttS nattltll c-ndo~mcnt ell_i;% 2L_ ~x~.raKe 5~)kltht.-rn ~tate. flit- rltlmh,, r ~,f :e:-...c.': farm ers is not so great as in the Co~':on Belt. the conduct of its governmm: 's such aq :o .,.rise its bonds the hl,:~e~: =:ark~:t value, its state debt is relative z :;Z.2.i~IDte and it 11as doric tlIkl~tl tO prC[v.'2 [- ~ t?~laCll and ~hHdrcn *n :ndu-;trv. N.-',er:!:eIe>~, \-~t:2'lnt.~llS iiA%C t!3{l<h t~i iear.": -'-=~ this illuminating .in,.] pro~ocat:~e r::'. ::. It}r ',~hHe Viru*nia rank- t~v [ ,'~,"•:--r ~¢-r- ,,2 -f r:l:. ?;Ntltil :t t-,r.~, ~ =.. .'c•,.,',~. -a~:l~ bdo',,., rhc .~xcr,',ec _t --: .-.in:r: The CotlntA[•s r~Fnrt .::~xe- : r ,on- ,i.cnt:.s rtlake-: no [-rt.-van.c :2 ~×:~.a-rl~_- n~->~ ,~t tr..iEnlt'tle ~.'ct tlx: ~.:.2 :=,.: t~ fell .lcc(aFl?p.ln}lng letter,. Paz,~.~ - -...:: -tc ;- "i'agrs. packed ;~l;h data ,~,nl~:z .:r.e r am ~,orbin~tr mtcrc>t for ,..xcr', >__::-w'ner ~, v, hom the bettct;:nLqlt oi ~,-. ::',=:n col', k[ltlOn~ !~, a -eF1t)[[~ conc~.rn 5t:lkin~hi,cil{i~ilr. o(~nc:'e= -- z;::c.i: by settion, arc ,2~vn nqrt n 2,r=.: quo- ta:ion" t. E<.,~t,,,,,A I?~ .e,,c.',--". . . Th: ~lrrh C~,p:c5 ~,t th~ Natl~ma! bn:ct~:v:~ (.,,uncal , rt-p,~rt ~, the President ~,n 'The Fomomtt Condition, ,4 the $,~uth may ~ , ;otam¢d upt,n request addressed to T~'e COS~Mo",- k~.'['AL'[H. rate in the South ex:ceeds that of an'," other region, and the excess oi births over deaths makes the South the most fertile ,ource for replenishing the ~>pulatinn nf the Umted States .... "No other region offers ~uch diversity of climate and ~oH. With a climate ranging from temperate to sub- tropical, nearly tlalf of that part ot the.- country' where there is a fro~r- less growing season for more than >ix Fnonths of the )eat is in the South. Throta:2hcL)r a] rOOSt tile en~r~" 5c,~.:th there is amFic altnkla| ramfall .... "With 40 ~'er cent uf the Nation's forests, the South has found [:~•~ uo,:.' '.nu~- second only to cotton a. ,~ ,o,.rcc of v~eahh .... "The South lags, hov, c,,cr. ~n ihc pra- ductinn of livestock, d~::,plrc trs ~ caiti~ of grassland> [t~ 2(i,i)f)t;.//lln catt!e amount to l¢~s than a thlr.i of the -n .~-t:; found on AKc~crlcan :'arm- .,1!~{ b,:t.au:,c of dl~. poor quality or {l:.iI:~ 0I" tht-nn th~ ",a[d~." ~:f ~h~: .mnual pro~ttlktlt0n )t cattle .., ~nlt' one- ,lath Of toe .~'ttl~ rl, r~ri1 Tb: .... ~.l, n~< " :,:2 : ', < S,.:- en[ lIII/lL:,]]" ~\ " .- ":;.~2, ;-Or <v-F,r 31 t ,~. ~c:'- - ..: ..,:'zcc :tic -,~uth- t...~.,~ tuneable., n]t:= ," -r,c, "% ~!,n .,.It ..... Nv.!r[', t'~,~ "-,~ "- ,[ !~c Na- rlOrr > ¢;t~c:~ ,[ :s i~r~>~:..c.:d ~. :no 5otlth. In.i ,',~.r r',,c~-:h,r,i, ot our .upVly of t~.at,lrat do. kOl:l~> I ron] $outh~.rn fluid-. {h~: para<'.ox ,at the South ~, :hat, ,v hire 1[ :~ [~[c-bse'cl el tla[L te t~.t:~\ [[ilt!ien~u ttc-,t~tll IT~ Pc'+'/I'l(d ..~ .~ ',k ~l<)l. .Pc [zle F-(~IJr- I\ tb~kn. "he ~t, :~[~ !ta, L~Cmf7 :, :.c.[ [~7 77,t,!~ 'rim tit',tilt,- i [- ,,.~ [- "t :,.~_C.',,< ..I7~1 -<,., ;'7.<1:. [ • ..,cd .-_•,~ _:: [: Ln< t]kl.nltl[~ ",, 17trot r, [2~C4~ t[ :tld:'t .,~.n- ~l,:ur l'.~t![ ;clcc'L;lt('[~, ['Ale2 2. .C )l.\tt l~c "c~ ~rl[ ,~f" ,l~I :tic, "£ I .;,,: p&,:!t ,.;;i',Zc2 b%- rl~41~!l-i - L" -c)t;rncrn ~2-',7.~ .~:'. m7,;- 2 Lilac" "~< . ; t PP. 1".;211] ;p..~ _4 !.}.r{~ t~, 5outt~ t ,,r, .:~:.: h,1, p,_cn z ;,,i~-'.: and '~>.l'l c_cl .l'~\ t'~ ,[ c't',[ :,',eDt','-"~.c) ;l:ll[lOl". :.re', t~I >nvu tv-rtl!e -,o1! ~.- ~gg~ ruined t't",Oll.l rcl"llr An~ltt(.7 lrc2 !~ [.tr~e IS ()kLllloma ,lied .klaban:a ~,>e::oin~-d has been ~<,r:~u.H dan:a~vd by erosion. In add~ti,m, ti~c ,terde .;.~nd and gravel ~.l.~}lt.d off ti)l~ ]and }las covered over a ' ( ,),';¢'¢;~,d ,,el 2'.¢gr ;~* THI- C(.)MMON'XY'EALTH + /t R 1- ,',~ 0 1 0 F! ~. (~ q p
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REIDSVILLE. N. C,, TIIE AMERICAN TOBACCO COMPANY APPRECIATION EDITION 5IARCH i,~ The Great Art Of Curing Tobacco at the barn. and ~.s (~y ROY C. [+'LAh'NAG:tN) l~ loaded, it i~ pla~l aevosl To cure to~a~co means In dry I~:~ khe poles Inside the ba.,'~. Tile T" 1 tl the" : WOn en he p hl th s mporta t task tlorm~' ~ ~on the lu~or i~ f~stooned with' years th~s inoce~.s al~aY~ re" -~_ • ' - the l~v-es, e~.eh loaded ~lck ed near the ft~ld wllere the fUIly ~Daced ao that t(~ bur¢lnn ~rewLl, h~ developed Rlong ~nethods of ¢uhLvatkm. The mate q alltv of every crop dcTend~ ~argely uptn th~ caXe curcd. • The eaalies¢¸ me~hod employcd ¥ir~lm~ was to ha~g the cut 01an~ ai~ ~l:e r~.!te~s o~¸ t~e kitchen hi lhe smoke l~u~. T0bac(~ ~Ae dnrk-flred ~y~e stl]l ~ pPepezed by this method in special barns • ~.'herem dlreet, ~moky heat t~ ap- ll[led. Another way is to ~u~pend the leaves In well ventil~l~d ~xpo~ed to the air. Bur!ey ~¢~vyland+ two t~vpe~ in ~tvike bIend, are air-cured. ~other is to hang the U3baeCo lhe ~un. T~lrk~h l~ d)~ed in ~right t0bac~0, however, thc Of leaf wh~ ¢uR~v~tion we ~rlbed, la Dre~r~ut lor the ket by that complicated k~owu ~ llue-cu~lng. 8peclaIl'¢ constructed log ~lghU~ to ¢~'entT-llve feet "or ~enty-flve feet tall arc httll~ ~ar the f~Id~. On one side ks ~e~t~=t~ a~e4 and L~ the ~lde of ~¢J¢ or stone "kilns," or ftreplace~ Which extend Into the barn. the~ kilns, inside, are attached long O~t.iron flue~ which through tho ~ and c.arcy lo every ¢a-i~va~ of It wh~ tile ftrcs a~ lighted. TI~e flues serve Just ~ dO t~c !0t~g pl~es on stoves In rural home~. ~ter the bexn, bu~ visually ~11 from the kiln ~mp:i~oned wtthtn the tight building. Beneat~ the eavw ~mall ~nclows ca.l~ed ventlta~ors, and there is a ~uare door. ~or days befor~ the ripe for harvest, the ¢ ~od part time at his barn¸ He ha~ aoaled up the thinks bcU~een; the lcg~, c~.ecked the Jctnt~ of llue~, overhauled the shingle ~nd repaired his kllna. Be~de 0f hia barn~ he ha~ ,tacked wig-' ~ashlon ~ gve&t pll~ • a~d pin~ po:es for use ~ ftre- Wood. At the dc~m~ are ht~ mUck~-riv~n p~:e ro~ls as thick ~bout Itve ~eet 10rig. He is re~ay now to "p~me" ~bace.o-~ pull the first I~J~ves ~rom each ~t~.ik in his fields. At one tgne whoIe stalks were cut, but this method no Ionger L~ Producers have learned to ~trip Ieaf by I~f as the ~lla~ ~ixes the prol~r atage means a ~tt~r ~ualltF produeh The plaz~ ~ the harvest ¢ontinue~ daF to daW. ~o that nParly l~f Is permitted to ~ach %urits" belare It is hauled away ~he barn for curing. Even on the finest plan~, there ~re leaves of varying d~ of quality. Though the planta haw beea~ "~p~e4" ~he ~aaon, Ieave~ now lop, Ia+v~e~t 1rvm of the ~oiL ~re ~Lnly f~avorud and Thc~e ~r ~cttor~ teRd to be c0&rs% earthly fibrous. The c~n~er leaves tbe plant are the mc~t tender ~ad richest in fl~vOr. T~ey brln~ tl~ fltma~r l~ne hlghe~ prlce~ when InN) ta~m~ hk tclmmm to market, J~ sl:sro of ht'at "~'hen • re lighted, Care L~ to overcrowd, the bazn A.~ l~ th~ +,~ord is pP..~sed to pUll the day. Now com¢~ the curing¸ are placed ~o Lhst the ~a:n ca:: i wann uD the t:~:m~'l wa:che~ l~re car~f~l y because durir)~ e~rly pha~,e th~ heat .'a~htn banl must no~ be mor~ (hart )y de~r~e~ aheve *b~ a.vsr~ge 0er~ture ~ut+ld~, For thirty 1o fcrty-elghl the m~dPrale t:e~t ~s ~tn(~lned+ de~endtn~ upon the appearance or the leaf In~4de. ~ne idea ts ',r~ the to~cco to ,~ b~gh~ oran~e- ~ ellow ~had¢ AS the lea! reach~ ira ;color the temperature ~4thin i 'cam is alowly rM~ed. "fine soc~begins to curl and dry ventilator~ are op~ued ~x) ~amp, ,~a~-lmden air wtiI less rind the fixes arc built up tc ~e,~a~ ~,~r the I~;s of heat. ,plte ~he high temDer~tu:'e i~~¸ ,~l we~tbor ~r ~ th~ l~a:es dry A~ the ~nd ~f r~li:, ~,en~,~ more t~al !~k :~s~ ~bead man ~'h:+ 1~ )en~,~n~ ~he barn ,rem:y 1~:,'," ~v n:~d Ilight been fec:L[t,:~ tl:e ~Lr~ ~nd i1~ "Ale <;:1<, ~l ]:ken r,m~ler >i:~ii:: at the ~,r,~i~ yet entirely dry. Unless they, along ! ~ith the much thiuner cf the leaves, arc cumpietely cttred, the leLf tl~ue ~ll "scald" or come discolored from a bo¢~ ot the sap. i~o UD gce~ the fire again. itelnper~ture mu~t be held high ~1 eeerF m01ecule o! dampzle~ drawn from every stem, i takes at lems~ eL~teen more ot firing. '~r ~ go 1o ~leep He may be op- : elating two or three barns I He m~y be so tired he hardly keep hl~ e~es open, but without spurt, all i~ls work may tmelems. New I~ t~e nc~.a.qon Ior n:-+~ the all ntght barn partie,s for which the tobacco comllry ~ noted The lamlly and gue*~ .~s( to help the barn tender and celebrate the final curing. There i~ frled ~htcgen, hoe ca~e and cool but~en~lilk. 6weet p~ta<o~s apples are ro,~ted In the embers beneath) the k~))s C~d~r Uncle Joe ha~ brou~l:, h~ ha:~jo ,nd the Wa~r b~,~ ~, dle~ ready, Stort~ ~x:'~ told; exch~n~Pd. Light frcan th~ gL~,n~ s~lne~ now upon b:~lt fac~s +hymns are ~an~. T)~e barn insns no longer ~:he:~ him. arc frlend~ ~ be~p ~t lires a~d 8hmre the long nigh! hottrs, Bu~ he mqls~: watcl~ texnperature. Alao he ha~ another ease. ~orne the fltu~ within the barn have[ become rid hot. A'faltl~ DIpe, a' in lllle klln, a bit Of fllllx~ Airplane View Reidsville Plant Ameri¢ Sheds Where Millions of Pounds of L~a: the barn and bring ~trueture to Le~t ~):v~o n:~ :;one ~ nolh~g. Caref~l~ly he lower~ ~gaitl, to sniff lh~ hol air if.one-i ~!~" ~:'~ L~I~ i¸ to e~cl the pipe~ a bit--but :es e us wa t u ~ r ~ ~ f it, ,7 ~ l ao much or l)e will ~ccl fhe la~er be ,~:'e ~e ~s ~a¢~f~ed lha~ , L~ ¸' =~ ~f ~ JUst a~ high aa he Can keep It-- ,r cm" W" en ~ ~appylira-' + ' "' ~ ~ ,, I • • , + ;:%, (!r]w- ~(: safely. MC~t of th tok tcc~ now i~ t'ome~, h~ ct~l ~rmit his ftrc~ to ~ ....... ,~o,~i ~ dry as t~nder ] C~r~fut, he ,sa c ~e~ os~ z sm: '4: ? '~! "~iI 1 Someone shml!s Or~ the sou h-~ ~ [~ky. h disian* neighbor's b~n m l haeco way into his precious :o-Ii , , / ,.is.:~t, i~¢~ hurntn~ There 1~ a groan of sym- ' As the barn uc~ls, the out.de sir }i ,, ~ ~r~ ~i pathv, and ~me nervolza lgugllter. ~iows in :~::d tLe dry ~':~ :r cc:u~at~, ~ht~i Tile ~&rn tender look~ at his !o ah::~::b :~:mr, n~ the a'mc:,i:hc; : t~u, in ~ 1'~ • gato, and thinks about the I lrlr~ ";;e 7i~? tc!?~;~J hToo:ne:; 1~I~, t~lg ~.~1~ when one of l~liat:/. ; ~lt~[~ -~t~ b&ltl II~red !Ip i~lm~t llke n !f,¢~ Louk I,~ h:" :u;c 13~ and perlIltt to crew# ~unpowder when a out, ~.I~d gc,~s :,<,tu~ r~r a ~ill~ il:e~-it~ ~ gave way. ~ e~t The ffddlers ~re p~ayhlg "Monr~" La~er t~r 2~n:tmg, th~)~ ~#~ MUsk" and a banjo player is Stl'~ln:- dc~] al'.fl the )~Dnc+~) ",,~'.oci ]'~ ::ble e~tre. 11~. ~I~ m~ng meledlo~ly. The girls ten:~rars' storage aud to:" sa]~. ::::o li~Gt' bgnIll¢~ cm twelva tO +*~ l~ughlng. Ovt.r the trees the "m~e larmer may hll,,e 5r)duc~d :: each, ~i~I~ ~p p*~"~ rno~n ba~ rl.~/~ like a ~t fine qu~lity, tha~ks to good age b~lxn, re~.gg Nt Dumpkln .... land, good w©~ther, good luck As 121e merrymakers stroll hard work. lle may flare brought thrcUl~l the gray daw~ light, the m~ beautiful Color dur= The duck~ ~ the c'.,)~)Ip. ~.IS"~t toe','R~-b.)y R 0 '1 0 3 :0:3 P6
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REIDSVILLE, N. C., TtIE A~dERICAN TOBACCO COMPANY APPRECIATION EDITION MARCH 15, 1989 eat Art Of g Tobacco Airplane View Reldsville Plant American Tobacco Co. -> :¢i~¸ ~ ~ Sheds Where MHtlons of Pounds of Leaf Are Stored for Aging o35o3,.-. ~
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on East ship/' All cigarette equipment A rugged countrF boy, Installed under t~Ir. Maxweli's RoCkthgham county, Mr ~.s was als~ ~ll of v.ell has never studied me~hanlcal w~gnlflcent power p~ant +~gineertnc but reeelved this edu- stemmery, m the scPool o! exr~rkence In speaking of the f~rst cigarette h~:'d kn~ck~ He wa.~ hsQpIP: Maxwell stated:uarrled In 18~9 Io Mi~ Arra first o~tput was allof Kockln~ham couniv, and the Itrst l~rt~-ftve y~ar~ of faithful af three machh~e~ ~rvlce ~s a record ix) a capacit',¸ ~f abo,~" 3OO cigarettes ~f and Mr. Maxwell per minut~ ThI~ i~ ~rla~nly ~ missed a day from ~ark i contrast ,o the modern ~lu~pm~n~ ~he~ ~ea1"~ on a=count ol ) now in opera~iou . Mr MaxWe1! Vacatlon time t~ the that what he w, eant by Mr, Maxwell ha~ been away¸ meant that there his occupation. electric power lOT years end most ~orlhy record by a pre~ure pumv George Washington Hiif- Big Factory Was Built Here In 1917 Dr M P Cununmgs h~a m possession a ~elegr~m he prl~ cu te g fly The me~,ags came to h~m ~ts )n~yr.l of ReldavtlIe, York. M~y 5, 1917, and Char]es A P~un, vice-president of The Ameba- that, his company h&d given the contrzct for bulldlng the Lucky plant here. c~rta~nly gaw (hvILL" ~d IM, Cummings. Negro Says Company 3ieans Much To Him Colnl~ny I went rl~ht along have been connected ~b.e company Mn~e that (ta~e, fl~u~h tL is now The Comp~]~y and means "I~ey have been a Me,he: P~ther t~ me all lhe~c ~r~:.~ and r ~,o ,~ Fll never lhe ~o ~!~en it I~ not ~n Rclds~i!le 'Faere hnve b~ml ~ ',o~ ot ma~;e In the yeara tlx~ IL~ irony ].a~ been here. but in all Lhc~e! ,~, ~h~. !,:,e ahvay~ )lad the! b~Lcr¢:t oJ thch ]:eli) at heart and] done c',v:',lh~n; It~r~ ~ould fo make IGks a:, th~ ha~e fOl 1~ hlte folks God ~l~s Ihenu PETER T CARTE~. Q .... Indeed ( pany" '>'e Th~ ITeidsvl)!~ Ch~m~ ['1~ of Comm~rea ~hIt~ vnu~ ) The Re~ds~dlle chanlb~v cl {)oii~- )~'&" nleree zu~t Rl~dly take~ th~ oppof nmi~y o! ~pre~i~ ~ t~ th~ &meH- I~ TobBcto (?Oll~]~Ily ii'~ kee~l ~- ~, pregi~tloll for t)l~ ~t ~bl}alllllen~ •nd conth~ued o~rAUon of it"t) an Lucky ~trika ph~n: tn our cc~n- nlunltY ~a Ideally ~h~mted h,t tha~ ~vpe o( j[~ [Itdu~try ~llg~.g~d ill ~he pr~e~iil~ m~n~lacuJrln~ ~f tobacco ~ul producI=i, Located rlgh~ at Ihe con- th( ter of a vma~ t~hnn~ growing &~, the Sl~ppty ot ~2~e "F<)iden w0~- i,~ ~ rk)ht at the d~): it )a~ but ntt-)~tl fh~r~far~, TII~t th~ nl~'~llf(I~'iW&~l the hi~to~' of the ~ovmmunlty hi,el came h~ pred,~r, ln~ting fac~ ~ |i the life of RetdsvlIIe. and many p~ (~ ther~ plant~ with ~mhlch ~lp J~ Char es A. Penn was d~a( fed a.~ Making T ReadyFo The cnlt~le of ~h,' ~emarkabt~ hc~ p)an~ which ~uslalns ore u~ lht~ ~t~t greatest mdast~lrs itl lhv ~erld I~-- ~ glns with a seed :.~ fifty Lb.~L ~ table~noonru[ 1,, ~mm~h t~ ~ ~ ~ix and a half ac:c~ al ~ca l~.r~ )kit than lh0 aver~tgt' ~*bacco plant- ~i~ .... of the ~eed can be ~cen in a gl~llce }~r tobaccos kinship tn n l=';=~h~r r!~ ~ flowers and vvg~.aM~ ~ entirely dlfferPnt proller~A~ USe~ The petunla..trlslt r~)t4~-~ garden i~pper, tomato, are all coUSln~ Of t)l|~ ~i ,ica)h, American p)a) t, Le~ ,ee how a t:,~,i,.~i o,t i~e11, bc h~ Vh L~i, . r ::,; C:,14,- ~i: l Itt( ~IG~Cr il~ his szcond ur thPd ~tew'h~t:~c~ kncc ~n¢l fiLe, tit s~ R u~, 3> ,e f~)r!~~ ',,iu,:~ he spreads carefully over th~ Na The btanil~g kills weedl sl~ In~ect eggs BDd [l~]l'~ fertilize now untd )he bed )s a~ :~ a h~b~r ly T),¢lea/ler he rul~ la wit~l s~ i,i, ~e,~L ~o t~ can ~,c.~Rer th~'m cr~ anJ enr~f,d!y sow~ hb ]iUle wood, irnr ~3utcil B~I£ tilts is tlot all, ~ Wi is too eariy in the spring for l,h.41 see(flings to thrive ul~protec~d> ~ tll i~ c~vers the bed xrHh a ~-e$~t~ dr q'ee: or e,l~eesecLoth md pe~ lr, LJn cic~n tight!F. Fi,Vl Dl~ing ~v(~r[a¢ .~ prP, ace ~.imusanel~ of white sq~ ~ in tlm ,a.c.~i~ below. ~:n~. faxme~) ~:l~ several o~ lhe~ beds l~t ac. r~deiP .... or plant nest~, destroy all ~¢ thrtr tender stock of )-feanwhi;e~ he has tert1',izrd his !sl;d ¢~,r tJon of l]le crop By the Irost is T'~sl m~si of l,ianLs a~e ~evera] inches ~fady for tr~nsplattHng, removes tile ~ecdL;nNn, a! ~ t,ne, and take~ thcTtt f)eNl Hele, along the ~ ~ hdv thai he has 'sei~" hmS plants. Wltll a stick, he punches a little the ground Just la.~e singl@ the ~rth and sre~ to p~tSm. An orctlm~ wmer mm-vebm at the 15 !!ii~ =i 0 3 037"B
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esident The American To~o George Washington Hiil Reidsvillians Ard Indeed Grateful industry engaged in the processing We do th1,~ not alune for Lho r~,- and m,n-nufactur~ng of e.mployment ~d fray rol~ produe~. Located ri~t the years have afforded_ No, It L~ tPr ot a ~'~l Iob~ceo grewlllg area, the fact that L~ the UP+ lile supply of ~e "'go~en building of this eommumt~ ~ m~ rieht at the door¸ tt was but nat- and women, tile execu~ve~ ~nd the oral, therefore, that the manutae- wage earner, of The AmeHeart 'l~- tore of tobaeco pl-O~hlct~ early in baeeo Company h~ve ln~m~t pl~,~t lhe ht~tnry ~)f th. roommunity be-I their part, For th~ fin*- e~v~c leptr. csme the predo-mlnmting factor inl Is+ everyone is deeply gratettli, tile life o[ Reldsvllle, 8nd mal~y of "To The mnericau Tobacco ~m- tipple plan~ v,~tl: wltIch the laPe[ pga~y"-.we, The I:tctdsviIt~ Charab,~z C'harie~ A Penn was idc~Itlfied[ of Commerce sahlte yo.) Making Tobacco Ready For Market Nly ROY C. I:'LANNAGANI Ttte eult~re of lhe remarkable riant which ~u~tains one of tl::~ g~'eat~t industries In the werid be- g~rL~ V'~th a ~eed ~o tiny that a ::,blespco:~ftll is enough to plant s:~: and a I~alf ~tCl'eS all area larg- ~: than the average t~baceo pIant- ~u's In the sl~e and ~ape plot[ iiiii:!!: t~ r ;,4o 1 03 503 79
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50th ANNI'WEaSAE~ EDITION Durham Village 'lThe American Tobacco Compa ny Located in Heart Of'Golden Belt' - : Now ~ot Only Vital Mauufgc- turlug Center But One of Greatest Auction Maxkets It ~ nQt s~ange that in Durham, hearl of the North Carolina Pied- should have originated developed the tobacco industry ,:,.as l~ter to spread i~ every i~rt ~f :he civilized w~rld, tar me ]ocathm cf the v~]lagc---at lhot t~me the heart of the "old belt/' called the "golden belt," on account of the rich golden color of ~ts tobacco of North Carohna and Virginia The golden belt pro- duces the fmest bright tobacco b~ the \vL, rld. wLthout which blend nl domestic cLg- or granulated ~m~kmg to- can be made This L~I~ is by ulher are~ produc- ing large quantJtles of brzght lem and the two states have, for ave three cenluHes, been known for th, flavor of thmr t~haccos• Ul~n the arrival of the first Et llsh-speakmg colonists in America at Roanoke Island, North Carolina, in 15~4, they found the Indians emoklng tobacco, and when Ralph Lane, of the colony, returned with Sir Francm Drake In England in 1585, the}- carried with them the fn'sl tobacco plant~ and plpes ever leen in that country These were handed to Sir Wa!t~r B:de~gh pro- jector of the e~ped~t~on tu America, bL~tory records ~h~t "'Through the influence and exan~ple of the iilustrlous Raleigh, who took a pipe- ful of tobacco a httle before he tobacco products faced • rapldlyF, lha tobacco Which If purchued by went ~o the scaffold, the habitb~ ~- dwindlmg market. The B]~rkwe]i'the greator number of the large rooted among Ehzabethan company and o-abets turned to the companies through their own agents. courtiers" and la~er became popu- machine~. Compefi~o:) be ween he Bach ndependent broker not only on the conhnent two companies and other concerns maintams a comptete redr~Ing plant Noah Carolina. then. h~vJng pro- m other localities became v~ry huL posse~es ampfe Jtorage ~uced tobacco of a quality resp~n- keen and in 18~../ames B. Duke for the lea/ handled. for the original popularity of lengineered" the formation of the The facililie~, of the independent smoking custom, and havthg Amemc~n Tobacco company., merg- buyers m Durham and the wide ng ~ veraI large compames nol cho~ce of lest available on the Dur- eenslslendy mcreased s production ! e since lha~ t~me. Jt ~s only natural mcludmg BIatkweli*s Durham To- ham market has encouraged the that there sbou d have gr w uD Dacca company• The American uas buymg through local grower~ on thel in one of ~ts towns an industra, cap~tahzed at $25,~90,000 and James part of many manufacturer| both! world.~Ide n t~ scope and d str~- B Duke was naraed L~ president, m this country and ,abr°ad" Each'., W th n a low Fean~ Blackwe s tndependeot mamfams a buymgI button. NotwithsL~nding the fact , , ' that thbacco had been grown, gran- company comhmed w~th Liggetl and 3rew on each sate~ floor of men who days of the colony,, had been mann- round company and others to form Carolina and who know lea/ am ulated and traded since the early Myers Tobacco company, the Drum. were reared in tobacco in North t a ithe "U~ on Tobac p ~ ] ~el #s men ~nywBer@ ~nd be er facured on nd dlstribued from ~i co c~m.an', tI , hundreds of farms in North Cavo-iTM not hag, however, before theiperh~ps than most. The hlde- hna and Vtrglnts s]nce early in theIUn[°n was absorbed by the Ameri-[pendent plants play an important eighteenth century, and had been loan part in the tobacco 'orld providing manufactured m towns and c~t~es] The proc~s$ of deve~opmenf ]oad~ a service of hxgh efficiency at I~w and by large numbers of corpora- on to the IormaBon of he Brit h-:cost which means a substantial ~av- tionz, it remained for resourceful American Tobacco company a d rags to coneern~ whmh oth~ Durham manufacturers to develop other* in the plan of n ernst ona would be compelled to send. 1 d m n own men into the field the ndustry on an internat'ona o i ante the d~ssoiut n by the seato. IUnited Shate~ supreme court uf the Also a vital factor in the Be£ma In lg58 IAmerican "l'obaeco conapany as a of the Durham market are th~ The first of these companies was combination in restraint of trade warehouse~ themselves, huge, one that, after a succession uf part- and the apportionment of its c¢~m- en~ structures, ~o arranged as to nePsh~p~, begun m 185g. ev~h•ed /nto portent p~rts amang the L/ggei~ and f~cH~tate mast effzcient h~ nd] lg Blackwell's Durham Tobacco corn- Myers Tobacco company, which re- of the leaf as it comes in, is ~old, party, manufacturing "Bull Durham" eelved in part the large plant Of and goes out• The city's very to. mmokthg tobacco. This company un-.W- Duke Sonz and company at Dur- bacon auctioneers, singing auction. der the ~uecemful management of:ham, and the Amer can Tobacco eers, are men of exceptional repu- W. T. Blackwell, Durham ploneer!company to which was al olled the tation In their calling, i in manufacturing banking, public,"Bull Durham" plant R d Roy- Tl~e warehoutes are the Star] school~ and other line~ was duma acids Tobacco company of Winston- Brick 1 and 2 and B~g Four, • satisfactory busmem, largely on'Salem, and P, Lorillard a.d cola- ated by Arthur L, Carver, W, mccount of the l~crea~ed demand for pany, Currin and C It. Cozart; the lmoking tcbuceo creeled by the The Jn]sealel indu~try, begum on • small BUll, operated by I'a~,er, Civil war, when. the way closed by f~rward-loohw, g North t'ozarl and 1865. • Carolinians, has devei~q.ed to a h~u~s, I, ~ and 3, operated by was a~ranged a few m es west nf of the ma e popu a an of the world f e d, George Cunn ngham and Wa - The final sutTender of the war puma where prohab ): a main ityeFrank G• ~at erfleld, J. S. Salter., Durham between the Union forces has been acquainted wzth the ex- ker Sh~nei the Boyerott warehousesl of General Sherman and the CuB- c~ltence of the flavor of North/1 and 2, operaled by H. T• iRoycrofl, federate force~ under General John- Carnhna tobacco. Tbe DurhamlM, A. B,,ycr-fL J. K Hoycroft and iron. After the articles nf agree- plants are ~perating on a ~n~tantlv~.L C Curr~n; ~he Mangum ware- i~ent had been signed, the sold•era enlarging scale "Bnll Durham.=. houses, ! and 2, operated by ~. T, barn" a' d other local brands, were o~ a new ha]l-m~lbon dollar umt of i.• Proctor, J• H. Avery and J• iv• of both sides came ~o the village to ~s experiencing a re~ln~ po,ular- Ma,,gum, G A Webster and Alvin entrain for their home~. "Bun Dur- lty whmh has prompted lhc eree inn BoWel'S; the Banner operated by W. d~t~ibu ed to some. Other Union the Amer=ean T~bace~ o,~mp~lw Barfh•ld. and the Planters, operated loldlert looted "bar~-faetorms" aftd plant h~re, fc~r the rnanufactul'e ¢~f by T. O. O'Brlant and O. B. mnai1 plants, carrying Durh~mtthc granulated form "Lucky stead. • lmoking tobacco away w~th there Strike" clgare~te~ and a [arge num'-~ Rumors of another war.house ~I~ey bega~ to wrote back for sup- her of other brands are manufac-iare heard, but nothing definf~, h~ gdies of the superior Durham type, tured by the Americ~*n here, while come of the propo=al thus far. advertising by word of mouth show. Liggett and Myers, also budding Durham'~ independent brokers upon the great expanslon phase of With two great fact, r e~ n the W, Tom~, Jr. president; the ed its effects, and the great Due- steadily, features 'Chesterfie/ds" and processors •it; ham tobacco industry was launched and manufacn~res other brand~, The Venable Tobacco company, C. its existence, icily, the redrying pl~nl~ of the ~m- Leaf Tobacco company, J. Julian S C~rr, late =grand old perial Tobacco compa~;y, Harvey, president; and the T, N, man" of Durham, then 26, put- thie Tobacco company Bright Tobacco company, Inc,, T. N. an Interest in the Tobacco Oral)any. the Bright Bright. president• company and Tobacco company and the ]Reynold~ All companies, thdlvidual five part in its managemen~ Il packing plant here, it ia dependent, maintain three to five him Lnmpiration that ~nt the that Durham has become a on the floors, covering the ham Bull around the world, auction sale market, simultaneous sales. of skilled painters worked the 2~e choice leaf of the choice ~ec- arB~yers_, on the D~ham 'round. weather permitting, and the :ion of the C~aarette type wurld ts e ~l bull greeted the POpulac~ in ~rougbt by the grower~ to pass un- American Suppliers, L~eorporated, nook and cranny of dee the eyes of ~,, SwarL R. M. Kn-klm~l. try. The lmint~-~ invaded fo~ ,rs r~pre~etttk~g every buyer of Sparrow; Liggett and Myers To- amd, ~t one time, even the :lgareBe leaf in the world. From bacon comgaay, H. C. Mills, I Ek htm&'e~ of mile= I,. L. Wllkl~i B. ~..~'- Durham" the tmt~lent highw=y~ of N~ --Photo by Parneii ~ L. Fowler, branch m|nager: A, Jlneorporated, th. lettf G~ih~n, it*islamiC branch mane- the American Tobacoa ger; and J. A. Kelly, cashier J E LJpseomh Lout~,~Ae Offlcert of American Sul~p~ier,, iclen~. ~'ho vpend. "~t upon ¢ Tennyson Poet la reate 0~ Eng[and,~season ehe found him ~e~cefu]Iv smok:r:gr The pec~ arly ~i!~ 'Bull Durham' with which he lu'd part of the t~bacce~w ;;; become acquMn~ed thrnu~h J.~mes of Amerce, coupled ~ Rus~e]] InweIL the Ame- c n p~et ma/Jc condi o~'£, ~I"~ " I u~ecl /~tdl Dnrham " imand of all C]~=~L'~ 0f ~l u I8~5 lhcre relurned to )3 ,~ ever grede Lhey mzy ~ fal'Frl nea~ Dtlrham, Washi~ag!on: While ia~l 3"ear, ~r~D Duke. back from his service Jn Ibe'~.n inlfavor~bl~ r~4t~t~0~ ~ Confederate army. He found the North Carolina crc@, ~ piece prnctically" desolated There market so]d 4015~.7~ ~ was a small quantily of leaf tobacco $9,3631)~6 36 or ~n ~V£'%"~ Jn one of the r~msh~ckle barns y~¢ per hundred p~u~d~ ~and[ng and this he granulatod exePt[ed only by th~ ¢~ d~d up in packages and ~Pt o ~ to~ ng ysar of 1937z~$ w~ sel~ under the brand, "Pro Be o P- ~ s v,e llder lh~: Publico" It sold readl]y in eastern an ~l~-ti~ nlark~ North Carolina al]d w h the pr~.!course, was head aD~ coeds he purchased bacon and o her above any other rr, ark~S !oo(2 SU] P le~ Bncouraged, he do- s now the "Middle ~,*tL" eided to c(mtinue, with lhe asses.I Theou ook t~*tsy~.~,@j ance of his younger sons, Jame~ B enntrol machinery octal Duke and Benjamin N Duke, the!the growers, s for a ~ marketing of h,haeeo granulated inrlng and. weather ~tt~i alarm, The enterprlse prospered !rich. one of the small huJ]dings on the likely a materially i~ and Jn ]~7.1 ~]e business h d gr ~ r, rhsr2 W h ~,~ to a point whore it was tec deal ~J boast±ha an aggrega ~ .t~ move to Durham a:nt hPre build age wb[eh requires ~y ~s ,, n ::c'2 r oae.. a..:a~;', i~ ~, .... firm nar~e of W. Duke Sons and Paved roads and ~rSt'~t-~l ~t- Cn, ani the name nf !he brand doo~ nf all w~ became "Dukes Mixture " } In Durham. too, ~l'! Id~ In 1880, the notable Bo~aek c ga. ties f~r the redIMJ~ ~ rette machthe, in ~ts or ginal form of tobacco I~ught ~l~m~ wa~ thvent~J a~d wa~ seized upon dependenl broker,S ~"~, eagerly hy James B Duke, who on- .... vLsioned the posmbihtms of machine manufacture e~mpared with the old " hand-r~lled method. Duke who had Succeeded h S father az aclive head of the company, saw a means of combatting the tremendou~ popu ~arity of the rival brand. "Bull ham," which the makers cf "Dukes I~fixture" found to be a alone wall of cgr~pet~t~on" Duke eotx pany rnaChmlsls perfected the maehthe and the sate of "tailor-modes" un, dee "Duke's C ~me~L " "Duke of Dur- nnd ~ther brand names be- gan at once. SO popular became the machthe cigarettes that hand- deed ~wi£tly and 0350380
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rThe American Tobacco ~rt • hetobacco produc~a faced * rapidlYlthe tobacco which Is purchased byP, L Fowler, branch managerl Incorporated, thtl teat division be- dwlnd]d~g m~,rket The Blackwell the greater number of the large Gibson, a~ststant branch mana- than compauy aad others turned to the companies through their own agent~, ger; an& J. A. Kelly, cMhier• opu- rnachJne~ Competition between theEach independent broker not only Officers of .~nericnn Suppller~.~ident, who spends a gre.t deal two companies and other concernslmaintains a complete redrying plant ' lin othei localities became verYlhut po~esses ample storage t pro- ~. pon_~Keen and m 18~0, James B Duke for the leaf handled. ,. of engmeered the formation of the The faeil/tie~ of the Indep~ :.. ng Amenca~l Tobacco companY, merg- buyers in Durham and the .,i~1 ing several large companies not choice of leaf available on the .r'¢ mdudJng Bi~ckwens Durham To- ham market has encouraged l ~ ~:leeo c~,mpany The American was Ibuying through local growers str)~ capmd~zcd at $2fi.CO0.000 and James~part of many manufacturer r B Duge was named ts pres dent ~ n th s country and abroad }~ci Within ~ few years Blackwell'srindependent mathtains a r.~n_ company combined wnh L~ggett andtcrew on each sales floor of m, arivlMversTl,baecoeompanv the Drum-lwere reared in tobacco In mu'-'m~nd conTpa~:y and o~'ers lo formICarolina and who know leaf r,n ]~he Uni,,n T~bacco company It well as men anywhere and better, ;,:.~,. jwa~ not ong. ht, wever, before the perhap~ than mosh Th~ hide- thr]Ut r~a was absorbed by the Ameri-pendent plan~ play an important [par~ ~n the u, bacco "odd providing 2he t d a ~e ~lee of high efficiency at low it~es ' pr,,crs~ ~ ev~,,pmen leads¸ ' ~ra t h~¸ torn ~it~ ), ,-f tile Brit s ~- cos~ ~tuch means a substantial sav- eful Ar~le:'d'ar, T,)haeL'o company and:lags to concerns which I h ~ I f " ~ould be compelled to send or, r, o~ era ~: :~e l,~r~ rl inlernationa1,~ ~,~i d~:~Tir~:ir1~e ~c dissolution by thel~wn men inlo the field. United S';~es supreme court of the! Also a vital factor In th~ [Ar,,erx~, T~ibae~'o c,,mpany as ant the Durham market are the sales¸ was cLJ]:,bll~,~t,,'~ in re~t, alnl ~f trade[watchtowers them,elve~ huge meal- at:- and Ulc .ppor:i~:.m,:nt uf Jus com-lern ~:ructurcs, so arranged as to inth~po~,nt p~rls among the Liggett and fac~IL~a~e n:~st efficient handling ore- Myers T~,bat-c~ company, which re of ~e leaf as it comes in, is sold, ~::~.!w Duk~ Sons ar, d eomp~,;~y at Due- bocce auctioneers, s~nging auction- am¸. eetved m part the :argo plant of and goes out The city's very te- ar,ham, and the AmerLcan ''ohacco]eers, are men ot exceptional repu- ,rer~com~>any '~ which was allotted the llaiSon in thole calling¸ bl c J'llull Durham" plant¸ R J Re I The warehouses are the Star ~mg!n~idr Tobacco e~mpanv of WinstonY-IBr ck 1 and 2 and B g Four. oper-i Salem s~d P her ard a d corn- ated by Ar bur L Carver, W M I f,~ri;,~ny, l(:urrm and C Ir "Cozart; the Btg] the: The ~ndu~try, begun n~ a smal Bull oper.ted by Carver, Currm,i i in Isca]e b}¸ ic, rward-lookmg N ~rthiCozart ~nd O. M• Perry; the Liberty i ~C;iroli~i:ms h~s developed to alhouses, i, 2 and 3, operated [i wariPomt where probably a majority!Frank G. Satterfield, J. S, Satter-~ L ~fiol the m~le population of the world]field, George Cunningham and Wkl-~ rces~has been acquainted w~ the ex.[ker Stone; the Roycrof warehouses ,. ;on-icellence of the flavor of North I and 2. operated by H.,T. Roycro!k~ ,hn-~Camlina tobacco. The Durham!M. A, Boycroft' J. K B0ycroft a~d'~ roe- !plants are operaling on a cnn~lantly!d. C Currin: the Man,urn ware-~ iers¸¸enlarging scale. "'Bull Durham," houses l and 2, operated by $, T, toi~s experiencing a reviving popular- Mangum. G A. Webster and Atria )ur- l~tY which has prompted the erection Rogers; the Banner, operated by W, ere ~o~ a new half-million dollar unit of L. Proctor, J. H, Avery and . F,~ ,i,:,n !the American Tobacco company Barficld; and the Planters1 operated~" ~,:d]piant her,,, for the manufacture of ~v T. O. G'Briant and O, B. llm-~ 1~t~ :he gra Lulated form. "Lucky ,~ad em iSttike" ci~are~ r~ and a large num- Rumors~.°ft another uu:iber of other brands are manufac- ~re heard, nothlng deftoite -pe. ilured by the American he,~• while ¸come of the proposal thus far. )w.~Ligget a d Myers, also building Durham's independent ,ur-[StCadily, features "Chesterfields" and processor~ at,: hod !and manufactures other brands : The Venable Tobacco company, C. cf] W~th two great taclorles in the W. Toms, Jr., president; the icily, the redrying vlants of the Im-!Leaf T~bacc~ company, J. old lperial Tobacco company, the Ven-IHarvey, president; and the T. ur-¸able T~)bacco company, the Central !Bright Tobacco company, Inc., T. N. ok. Leaf Tobacco ompany• the Bright Bright, president. ac. I Tobacco company and the Reynolds All companies, individual xaslbranch packing plant here, it is dependent, maintain three to !lye ur-Inatural that Durham h ,s b~ buyers on the floors, covering the -we great auction ~le maxket, ¸three simultaneous sales. ear'the choice ~ea! of the choice Buyers on the Durham market theit~on of the cigarette type w~rld is!are: m [brought by the growers to pass un- American SuppIIere, Incorporated, un- ider the eyes of the trained leaf buy- S Swart. B. M, Kirkl~nd, ~gn]er~ repr~enting every buyer Sparrow: Liggett and Myers py.]cigarette leaf it* the world, company, H. C. Mills, E. H. ,es- points hundreds of m~1~ ~ohn~n, L. L. Wllktns; R. Z. R~y- ing iover the excellent Tobaee~ eompavty. ,L B. King. highways W'nlte, Don Apl~le; Imzm~ial the 13 [ Thackeray called upon A fred, Lord i Tennyson. poet laureate of England,]Season. Export Leaf she found him peacefully smoking The peer a'y acd soil of ths company, W.R "Btd[ Durham• wRh w}uch he had]part of the tobacco-growing ands Boyd, E, C. Edward~; becume acqua nted through James ~of America coupled w th dea e - Ru&~ell Lowell• the American poellmaiic conditions, provides a h'pe company. C. W. Hedges, W. M. m~d man of e ~ers Thomas Car ]o! tobacc~ which con a ds the de- r G Cash lyle al~o used 'B Durham'." ]mand of all classes of buyers, ~,hat- company, J. , A.~ In 18&5 there re~ur~ed to h~s!ever grade they may be seeking. Noell, T. T. Hedges, H. N, farm near Durham Wastung~n While last year, crop c ntrol and IL L Harveyi T N, Br~gt ])uke. back from his 'service in thciar~ unfavora[)le season reduced the company, Ine, 'r N Br ght, Confederate army. He found he North Carn na crop, the Durham Roberson, W. B. Willi~ms an wax a small quanl~tv of lr~f t~ba,'cn 159 3~3 996 6 or a average of $23 09 W th the ~wo great iahac¢o r]ace practically desolated. 'rhereh~}arket sod 40559,712 pounds for Adams. Jn one of the ramsi~ackle barns yet ]p~-r hundred pounds, a po ndage ]located here, much of the standisg m~d this he granulatcd, lexeelled only by the record-break. ;remains in Durham !or did up in packages and %et out to'tug year of 937 '38 when 46 fi57.272[ture and the *red ~m n~nt portion sell, under lhe brand. "Pro Bonolv'~und$ wetlt under the hammer forithat leM goe~ ~tto "Lv~k~ a.orm ~aronna arld with the pro.[c~urse, was head and shoulders'American Tobacco company ' reeds he purchased bacon and other lahore any other marke n whatlkish blends, the American h~ food supplie~ Encouraged, he d~-]~ now the- '•M~ddle Belt" m~ e Is Turkish plah~ to i t4 aC dcce~ O'fnhC .......................... [ Th ........ t~ .................. ] ....................... ---- *s younger ~cns, James B. control machinery voted down bYlmodern cigarette and smoking Mu~e and Bel;~amm N, Duke the[the growers ia for a argcr pla/lt, lbaceo plants, ef course. ~ ]m marketing of tobacco granuiathd th ing and, weather permitting, very iscrupulously clean products, ~ t~l one of the small buildings on the likely a materially larger produc- fully cleaned, treated and bll i~ fardml• 1.,Tl~e enterprise prospered tan. tobaccos, made in modern ma, an n 8¢4 the busine~ had grown Durham with I3 wareho~es, ma~e la a point ~here i~ was decided tolboastlng an aggregate floor foot- Of!icers of the DUrham bz move to Durham and here bllildlage which requ]re~ fo r days of of the Liggett and Myers Tel ~mall factory A rr the esab [selling by three sets of buyers tu:c~mpany are Edgar S Torn~ lishment of a'formal "plant" thelmake the rounds, is well ec~uipped:C. II. L vengOOd, factory m nm bt~Al/l~s Was operated under there rec~ive and sell he tobacco. A• d Bullmgton, in charge o~ firm name of W Duke S~ns and~Paved roads and streets lead te the R C. Carmlchaet, assistant to Co., and the l]ame of the brand doorl of ".ill warehouses Toms, and d E. Farley, bec~e "*Duke~ Mixture '*In Durham, too, are Ideal faclll- Mr. Bulling on In I~0, th, notable Bonsnek eiga. ties for the t~drying and pack ng Officlal~ of the retta machine, in its originat form, af tobacco bought through the in- company are: was Invented and was seized upon dependent brokex~ aa we as eagerly by James B, Duke, who en- • "iai~ned the possibilities of machine tnanufacture compared with the old l~and-r~Iled method. Duke, who had retroceded his father as active head of % le company, saw a means of combatting the tremendous popu-: tartly of the rival ham," which the makers ~dixlure" found to be a stone wall of competition. Duke company machinists perfected the and the sale of "tailor-madex" un- der Duke's; Cameo, " "Duke of Dur- ham" and other brand names be. gan at once. So popular b~eame the machine cigarettes that hand- t~llh~ died Swiftly and granulated F T;qO! 035038I
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Golden Weed Was Important Factor in Founding of Town Aflled |n~g~ies--'~Broufht Legdfl ............ erg Heye Who Aided i, De- I Veterans vdepment of City i chief Fn~n..lt, A~,i.t. _~ ' and Cblef B, C, Cannads ~d Cap- By SOETttGATE JONES i rain C. H. Turner, Lleuten+nt E. L~ Farslghted. indeed, was young J i Fields ~r.d J, E- Johnsen, fire de- A. Robmm,n who, in March 1880, pLrtment mechanic, are the 0nly latmched the "Duzham Da~ly Sun"' remslnlng members of the Dpr- in the thrpgmg town of Durbam] ham I~tld flre department who The "field" w~s fauorabie, for Dur-' were in the de~a.rtment s| the ham~ wbfle littie more than a vii-'[ time of the big fire in 191g, Jase, possessed chizens who ai-I ready had pr~ved C, xe~ ability as bald( rs upon wh~m a community internationally adverli~ed well , ould stake its hope ol future .. come to Durham In 1887 from Both the Blackwell company and O~g~ Va. The town at that time consisted:of this machtoe, bad brought down p~rily at industr~ mant~ac-'fror~ the north famIlfc~ skilled tiering smoking a0.d plug tobacco maklng cigarettes by hand and i% cigarel es, ~naff. ' wLsff" chewing to'~is remarkabl~ how they were ab e bated, and fertilizer. The market-~to make several hundred 2ng, through w~rehou~es, el (helper year in long strip#, then cut into brtghl leaf tohacco grown m the]p~oper l~ngths ~vith sharp ~s bec~tog an ~n-Th/s method vf ma))ufaeh~re, ere~ing~y important activity, the]ever wa~ expensive and did growe~ and ware~ouse2~en, ahke+lprove endunng. caterlng te file manufact}Jring.irl-! Other manufactories of tob wA~e, lndependen o e~ r]The R F Morrls & Son Mann were buvtag the leaf on watch use "corn f d 1 l f~oora and selhng it exther locallyl ......... - lurtrlg p~y, oun ed n 8~8 by n s the U 'ed~r{ ~' ~lorrls aeserloe~ as "me m other . ar~ . of m, f:p oneer in ~e obacco bus t)e~s at Ihe uulustry o ,Durham." and making "Eurcka Dur- the local m nuf 'tutors was popu, - a, ac ] l han " "[~e=r ' n~d '(,o d lariztag the use ~f tobacco not on Yhamt, smoking t bocce Choice Sc~#~ch Snuff;" R T and the le~L~ produced in torte, manufacturing "Little OranG- was then,~nd still is, the best ka," "Favorile Durham" and voted bright leaf grown a~ywhere Cent Durham." Z. I. Lyon in the world, ~p:tny. ~rodueing "The Pride The original settlers of Uae town:ham" whose annual output Angier, Man-"over 2d0,000 pounds" and gum. Pratt, P~edmond, and Vickers,satas "cover the entire Union;" faroJlles+ W£th2n several m~es tbere,N. Link, who began m I~7fl the C~rrs in Chapel HdLfrnanufactore of"Dime the Parriehes in Grange county, the J. R. Day & ~rother. composed Duk~ a fsw miles northwest of the of Messrs. if, P~ and W. P. IMackwells in Person coun- Another larger manufacturer ty and the Morgans several redes plug north of Durham all fine st~ck up- was J. Y. Whiffed who begart on whose type depended the sac- manufacture~ in ~KJBsboro in cess af the ~uth in rehabilitating and later moved to ecotlorrdcaily a~tor the rave- factoring "Ambrosia." "Old ges cd the Clvil war. State," "WaBer Baleigl~." W~thouf doubt, the mn~t fmpor- M~eon, 'Tav~rlte" and " tanl factor in the foundation and Nice" twist and Dlu~, ancl early growth of the town w~s the Lee" ~tld "B~smg Star" Durhara" brand of granu- tobaccos. smoking tobacco, John H An G~en had begun the manufacture, sonality in the introduction of brand dur-j ufactured cigarettes was J. ing t~e Ci~fl war. In 1968 he sold gel, a native of Kovno, an interest to W. T BlackwelI andiwhere there were l~rge J, R. Day. the latter of whom re-lfactories There he served his shortly afterward. In IS~0,1prenticesh~p, went thence U) Lon-~ Celt purchase~ for his 25- don and w~rked th factories fhere, year-old son. Julian S. Cart, a sub-~and cam~ later to Durham .wher~ stanllal inter~est in the company and. he served at different having died in lge@ and hisS. T. Blaekwell & Company, interest hav£ng been sold, the ecr-iW, Duke Sons & Cnmpany porate name became W. T, BlackJbeginnln~r a successful well & Company, !his own, manufacturing What Greet: ~d Blackwel] hadJgram" cigarettes. Siegel Ls ed on a large ~eale. A man of dY-]London" and his brother, caled snd rlurtured, Cart devel- ed as "the l~th e~#Amtte maker energy and intelligence, heSiegel, &~ "[be SOtS m London, charge of the marketingI the 4th in the Untied Stages. the product and emph)yed cam- ther~ are ~ow in th}~ country l petent artist~ lo ~aint and erectlto 17,000"--that th 1884. Durham" advertismg sign- boards along all at the railroadtt int| I 1 | , + ...... d Ca..d. and nanomacle th~ x~'o~ram to fore gn To CmrT is attributed the~ for haVln.g eol~cei~ed an,J conducted the first advertising eam-] p~ign national and intornattenal in[ scope, and its efff~acy was demon~ stl'ated by vastly increased ,~ales b the campaign an(~ the con~luen growth of the community. Almost contemporaneous with th beginning and grow'~h of "Bull Du h~m" was another tobacc~ menu- ] factur~ng enterprise de,tined to be-[ come a world factor Washington Duke, a frugal mstl of sturdy en- ergy and determination, fine Judg meat ~nd steady f~lth, slier havim served with honor in the Cooled er~te n~vy until m~tstered ou! t~e close o! the war. began th~ tobacco on his rood farm a few miles north'.~res~ o TO a~Lst him ~ere w~, his son~, Brodle. ~jamin Nr anl Buchanan. By close application an< peddling Of the produc small busin~s gr~w until, Ii it was moved to Durham an< a frame budding 40 by 70 fec~ thought to be sufficient for all luJ b~-e needs, was erected on th~ north side of the N. C. railroad. RLACKWF.,LL A N D CaM- The bu~ine~| was conducted PAI%'Y'S "Durham C~aretto~" tier tho nttme of W. Duke Son~ roiled by hand. wer~ popu~r m Comp~ny, and its ~producta the old days. The package above co~tflned to several brand~ held five eigareltes. In fact, ft. ulmle¢l ~lokmg tobacco unt~ still doel. for it has been k~pt for when machines for the ye~rl a~ s m~mmlto tm~ m~wr ci~srettt~ were thv~ted. The bgert old,ned. It ~ t~ l~'olmri~ i ~u/rdat bm~J~t the r~t~ to ~ thl~ of ~thgatt J~.~a
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' in Founding of Town Brou|ht Lead-! Aided iu De- ! Veterans t of City cmef r~nk ~v Be~"~elt A~ist i and Chief B. C. Caea~a aa~ Cap- IATE JOMES lath C. H. Turner. Lleutexl;nt E. L. ,ed. was young J Fields and J. E Johnson, tire de- ), Jn Masch 1889 partment mechanic, are the only irham Daily Sun" remaining members 0f the Dur- town of Duxharnl hsrn paid fire department who ~vorah e, for Bur-; were In the del~rtment at the more than a vii-~ Brae of the big fire th t814. l citizens who at-] I their abdity ~! .... tara a community mternattontdlv adverUsed "B ul ttx hopeflf f.t~relDurham, brand retarded ~.~. Robmson ad i o growth considerably m 88? t" m Soth the Biackwell company the Dukes• prior to the ~at *2me ¢onslsted at this machine, l~d brought Jus~mc.~ man~fac- from the north families skilled in :uJd ~Iug tobacco imaklng cigarettes hy hand and it t~s~'" chewing tO-is remarkable how they were zer The m~irket- to make several hundred "~rch~*LL~e~, at the per year m long strips, then c~t :co gr~n m the proper lengths with sharp ~ bect~t g m h ":Th~s raethod of manufacture, -¢ar, t ~cttvt~) tbc evcr, ~as expensive and did I"ehoUs~on, ahke,,pruve endu:ing. m!mu~act~rw~ m- O~ber ma~udacturics 0t e, oev.ei~ymg Ll~e[ ? cal(,d hi the young own ;, tooa~u dealer~ The R F Morrs & Son M~ le.!f O!3 war(hou~elt.nmg company, founded in 185g by g it exther locallyl f th it d R, F. Mart,s. de~mbed as the r, ~ e IJn c. pon~er n the tobacco bus!nes~ at I The industry Of iDurhamY and making "Eureka Dur- ~¢turers was popu-!h x" "Bear" and "Gold nf tobec~ not only[born, ~moklug tobacco at n fore g eou r e~ ' Seo h Juc d t belt ICh~uce . ~c Snuff; R. T. Fau- "e in his ce " anufactur ng "Little arena- - gr~ a y~ Xc~ Cent Durham.'• Z I t.ynn & ,pony, producing "The Pride ~etflers of the townJham" whose annual output rham, An~ier. ~an-"over. 2OO,t~0 potmds') and Imond, and VickerSlsales "cover the entire Union:" t several m~es there N, Link, who began in 1876 ~s in Chapel Hill, mannfaetureef"Dime Orange county, the J. ~. Day & Brother, composed les northwest of the of Messrs. J, R. and W, P. Day • ,ells in Person cvun- Ancther larger manufacturer rgan~ several miles plug, twist and n--all ttoe steak up- was J Y Whirled who hogan depended the suc- manufacture~to Hillsboro in th in rehabilitating and later moved to ally after the rav~. facturmg "Ambrosia." "Old 1 war. S ta *m," "Waiter Baieigh." ,L the most impor- Mac,m, "gavor~te" and the f0unda:b,n a~d Nice" I~sist and plug, and f the town ~as the Lee" and "Rising Sial" smoking • brand of granu- tobaccos tobacco, John H An interesting and important per- un the manufacture, sonality in the inlroduction of man- le. of this brand dur- ufactured mgarrttes was 3. -at. In 188a be sold[gel, a nalwe of Kovno. Russia. W T Blackwell and~wi~ere there were large latter of whom re- factories. There he served his afterward, ia 1870. prenticeship, went thence to )urchased fur his 26- do ~ and worked in ulian S Car!', a sub- and came laler fo Durham .wher~ :m beeompanyan&;be served at dfferen trees died in 186g md his W T Biackweli & Company. : been s, dd, the cor-iW. Duke Sons & Company ~ecame W, T, Black-:beg nixing a successful business ny,] his own, manufacttlrmg and BlaekwcB had] gram" cigarettes S~egel is urlured• Carr devel- ed as "the ]Sth cigarette maker ir sca!e A man of dy- London" and tds brother, Dark •.nd m~eiligence, he]Siegel, as "the BOth in London ~- of the marketing, the ~th in the United States add emp]oyvd gem- there are n,~w in this eowntry to paint and erect!to 7,000--that in 884 f' advert~stn< sign-I Ha ndmade i~o~r~ te foreig¢,] C&rr is attributed fbe[ type. cunceived and: firsn advertising cam.I m • and international in[ etfmacy was demon-I tly increased sales by and Lhe c~nsequen eommunit3 emp~wane(,u~ with th ~ra~'th ~f "Bull Doe tother tobacco manu-! rprtse desthlcd to be-i I factor Wa~hhxgton a] man r,t Me,By :m.,*uon. Free judg ,c? faith, h,~:,+r m the .:3:,1 mustered 'i,e war. began L t;~?lT$e° ass~.t him there ,doe. Benjamin N :y close application an~ ddIing of the produe :smess until. rn~ved lding, 40 by ~0 e ~ufficient for all ~,~ e~cted ~n the N C. railroad BLAC]K~L ~ ND COM- mas was PAN~'S "Durham Cigarettes.~ e of W. rolled by hand, were popular in nd i,~ Droducts tht old day~. The package abort ~everal brands he]d ~Ive cl~aref~, ,L'l fact, ft Jr.g tobacco for it h~ Imam kept ~r nes for th~ Feltrt ta a m~mento ~ never were threated, b.~n oI~ned. £t is the xt the 'i~ ~t to i of South~t~ ,Ion~. , then ~e, ~l the loess on i large se*le. the c~mp~tt¢to~ with the ANNIVET~ARY EDITION f ~nerally 00xl~0 feet in sizeJclgarettes, they sent R. IZ [} the l~pers in the smal inwns,a partner and chief s~l~ ml ot fail to criticize their artistic[over the world to ~ll mad ~dver- E P d .......................... I their pred ...... d Duke, cioa. ven ainte on d,y f ................... l elnpoy, show ng what they bava n Queenstowl~ Glaagow London, 9 • daily performed• We have eovered~Antwerp, Rotterdam, Copenhagen. Egypt s PyramMs.............. U ...... ManitobaIEtock, ..... St Petersburg, Berlin, and part of Canada, b.t we have Paris, Cape Town. Ceylon. Singa- c_ 1" u |,, h) go over the work every twoiporc. Java• Sydney, lind New Zea- No Ex~e.~e opare# in mar~ng years we lo,~ m~y u~ess ~l.nd World Ac,-,*i-f,a With f"itu', keep the signs fresh Y~U can So General Cart adverthm~ x .............. ~ "Imake your own estimate of what'Butl Durham, the Dukes adver Tobacco PpoJudg Jill s all cost~ " And t must have; their cigarette, Durham ww~ r~. --~-- been plenty, Inowned the world around, an~ ad- ~l'obaeeo has made Durham fa- But he Dukes were not to be~vertising made the tobacco Ihdus- indus the wnrld over" was the proud outdone by Genera] Cart's ButhJtry one of the largest In the t~litt~l bO~t ~ H'.ram V, Paul in his Hay ng itart~d the manufacture oflSta~. '•H!sf~ry ~f ~he T~wn nf Durham,# N Cr published at~ 18841 but he~ .... might have bnastod with equal truth tghntnulDturdhan~moh~i:,gm{oC~aele~b';c~ One o{ lhe ..... f .......... th .... Id Old ,~,4 ..... ,ro.~ of the lob .... Bran s dustIS", and uf Durham which (.,no s,f Jl.~ by-pruducL% w~s largely to the T:>day th ...... ~ ............ DUKE ho~rs "Ctmsle:lietd' and "Lt~cky S~r~kcs" in rlewspapers and maga- on billboards and posters, ti the radio eve 'y day of the year great a part advertis-'l n a_' n c> 'r~ I g I[ ~s 1 m de ~ merchandizlng ]But the part those early Durham tobacco cumpan,~s, fiercely compet- in the early days the induslry, played in ]at~ng m~dern advertising almost has been forgotten. Today everv- i on* knows that the big cigarette[ are the biggest advertis-I ers in the ~,,rld. spending millions nf dollars every year to advertise their ware~ Yet the huge sum~ fhe., suend now is Jess u) proper- tmn n the business they do han~ the m mey the early companie~ spent in making their brands k~1own throughout world. It warn General Julian S Cart then president of ham Tobacco company, "MAgi FINal ............................ HI# ImP) T01m0o0 of adverfi~ r,g by sa>dLg. "As lon~ as I have a dotlar to spare, x=i invest it in udvertising" And ABSOLUTELY PUNI ~eni on to explain ~.st how d~tlars his company was investing' every year to make "Durham nowned the world around." J;dh BlackwclPs B~ll Durham To- bacco ~.very [olin c,[ advel't[gilJg employed in making the company's product known. N W. Ayer & ,ff Philadelphia, still one of largest advertising ~geneJes in w~rld, had the contract with B aekwell company to place verliseme~ts totaling $100•000 a year n e~mntry newspapers. Spec- ial con~r;.ts totaling ~0,0~0 were s~Rned with the larger city t,e.~spapers. Some f~M),om) ~ year was spent on advertising clocks, one of the specialties stressed by the company. And perhaps modes~ honorarmms were paid to public f~gures wh~ permitted recommendations of Bull tr: be pahlishcd to influence public Among these endursers Alexander 1{. Stephens, former pre:~idcnt of the Confederacy. whose testimonial appeared with his pic- tuce ,,r, the cover of Pauls "lh~tor~ e,f D~:~bu~u' Slephens wrote: t~e been f,,r ~ver 2O years ~tant smoker, I find Durham that true excellence m no other (.V¢~l'y package being the same. 1 can sm~,ke it a~ all times, day and nighl, wltb impunity; it acl~ as ,~ m~Id and pleasant stimulant, a!- ways q~ots my nerves, and in nay d~.agrees with me It is a great eominrter, a pure, sweet, awl m~!d ~moke" That testim0nial which reads strangely find in our newspapers today, ndvert ~ed wci~ ~er 50 years the tuhacco companies pushed, they did not originate, what cnme Io be known as testln3m~al NL'W (hh'll,~ and Texas" and vcrtising Other testim,,niaIs en } c:~ !,) ),b:~i( r Ol3e ~sng is paintin8 dorsing Bull Durham was se~ut~d, f:,y~ N~ 5",r'k ~,> W~,shlngton. and from Senators Blackburn of I-~en ~l~.r c,n ~, "> 11't England ......................... I ] .......... -~a}~Ig Ras N .... ~u.h C~ o.i a C ckr II f M ) ~ I d I , r ~ n . o e o ~s- ¢,,,~ ",,l ~ :in "hJladc]phla on he ur, and Harri~ of Tenne~ee and~ Pc.ns>i~,mia and Bound Brook rail. the Rev W. H Mi]burn, chaplaini rnads. The ot th Unlt d States Senate ) f m e e . ra Ch)c.go and "~il paml al B t the p • d res ts ce ~i thro h th u ,ec e is n ug e west ~d over me Black iI Bull Durham T b~eeo we r~ O Northern Pacific railroad clear to ~as the Butl It ~as painted ali on ~?~ t I ' ' ate, Washngton £err or), huge s gn board~ a ver the ]and " do b " i ) " , 'Thls work II partly ne y )n- ail over the world, and once, B~. W h'~et and parfly hy hiring men by I{Boyd poned out ttl h~ Tb theda Weh . • e y. ave one man who has i Story of Durham," l~ w~ to ~ 3~n made a great ~eputafion as a paini- on the pyramids of ~gypL About cr ~is rea name I. ~. Gilmer Ker- this form of advertlslr~g, ( net[ Of Kernersvi • this state ['{is C~rr gave Edltor Paul th~s l arhst nora d~ 'plume is Beuben men forbml~ye bo~k /% ar > .: ink, Reuben Rink's bull| are ~- "Now in add{fl.on to this ted for Uleir tir~ and arpirlt, YOU ~orrr~ of advertl~lngl t~e ord[ntk-y sign| are played out 0~n~ of palnt~tt working th~oug~, We hav~ fo have something str)k- ~ollttv~ b~L E.arcy sign that Reuben ~reileI a sensaBom
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TOBACCO COMPANY APPRECIATION ~ Important Typ, Used InTheBle Of Lucky Stri PACKAGING Buyer Fro ~T:,q01 035038a
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retteMachine ' Types Used InThe Blend Of Lucky Strikes T wo Product: Manufactur ReidsvilleF ~Cl~ AGING G, E, CRUTCIIFIELD Kay h~el-, bespectacled protes-! Pr.e~lcal )okes of "Kay Kyser's College oil rt's~i~lle Popular tunes, .. Knowledge"¸. nltgt:t never~ K~y ~xrned that has a~umed this pedagogic rolel Kemp wlm l~layini In • If he had pursued his orlglnal plansI theatre IL~t yelu- he a~ the University of North Carolina, clans crowded ~e~n~ v~ , Kay would instead be known[ front rew of Lne orch~.-'~ ~ as dame~ Kern Kyser. barterer new~pt~pers whlle Kemp . Promh~nt In campus activl- ~w~y .... T~mes he r ales, Kay was a membe of N, C ~7"M~r~qe', "T~ke Your*( highest honorary organlzatiohs,j Movies¸', and "~B1tt.ln" cheerleader and orchestra leaC~rrl . . Don't let hi~, , • . He w~s awarded the degree~ r.~anner tool YOU, . He's 0 Bachelor of ArI~. but kept right[lhuslas~Ic ~peedbo~t " on leading his orehe~Ir~ H.I When member~ of the fala, i ha~ never lost his grip on college: dc &r~,thtog d,ncers .... In Mliwauke last;appl~vlng eye, he fl~ Ye•r, the band pt~yed before g114~ menial tasks, sh•g students and Big Appl~ xti- er, Mel'wyn "Ish • Y~e hold~ an ai~-t~d b~d ~o pay hls flne record for bttsiness on one-ralphi rylng the orchestra's st~nd~. • , He r~eutly playt, d nround o11 ode cf the fcmrte~n t~[suton and Dixoa pro~s three weeks¸ iiii: 8 T,'40 1 0350385
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Buyer Vice-Presidents Of The American Tobac~ ii~| i i Where Reidsville ~ets Most Of Its Leaf Tobacco HILL I I Local Branch
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---
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: , .~~~J~IIi~,, ; ~ : ' - q:v=~ • - ~' , ~'~.G~ ...... LE (N C ) REVIEW THE AMERICAN TOBACCO COMPANY APPRECIATION EDITI R]'~01 0350388
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General Foreman J IL \,O~M.%N i F, ngineer Power Plant Foreman Cashier American Suppliers, Inc. ~, "- mlllillli~ !: ~-,WO "! 03 50389
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THE TOASTING PROCESS ~ T,',ffO 1 0350390
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~ T ,'~ 0 1 03503:9 "! it would rake s(xqle o~ our re- ,:~-conc[itiot:ed :-oom '/~w grca', Ihue It ig now, speedi11~, ax>llg, them II yu ~we ~ve ~'c~n~;'s~ ~°~¸cf .............. lca~ , le .t ................ n t ~i~ re;an1.]~ 1::re a~ un~ i~LRenuity ot the manu- .hmen ambouzol yetrtohex_ a rnr] [' i; as Derf ..... i ..... ~e mix- tl v TURNER I1, L, KLNG thod aU otto own Our ~ This "bu]klll~ ~h ~ n v.~ t,t~ t) t L'(LIITr h~ bern abe to c c~s~.] .... [~{ii~ii~a~'"'~ ." chin of Ix'Odored ~'~,: can expla:: e:,.c~t, ~h', it ts :irate' imo~mg try!, and ~nJff it I.~ a ~n-{ ::r:g~ o~' orsngc-,:o;ored Bright,[ = : . '~ .ion me blmldir~--e~rythlng ecc:~sa:,, , ddnl ,at the :low :1: . ':{ry de ~h NO longer ts tt a col- g~)lden ~ re, ~ o T:atki~h, an~. th~- , ~: ~ , : 7 ~- :; m*~~ = - o.,~.,. ~, ...... a, ............................ a ,,]I,o~,,,o o, th. ,,.e., ............... ' .... h.o ..... Bu~, .... dt~g--,,_o~. ~~~ m rt~earch to aevelop = bgh~ ,t is :rou~lceome Yet experieno-~ ~ <;~.e ex~miz~ttion ~ou ten ~e~ *inv{ now--completely, per[eetl} merged, ~.
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Tobacco Auctions &tee
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N C,) RI:VIEW-- THI,~ A 5¢¢KIt A.N r~osAv(;u CO,~IPANY APPRECIATION EDITION "Sold!" Tobacco Auctions are Exciting ' i;i J / RT,',~01 03~0393
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.:~; ";L ~:~ :,~ ; ~*~ ~,~'~-~i~~ :~t~ ~. ~G..:~.~ ~: , ~ =~ ,-%= ~ ~?~--~ L~' :q~~, of • family P~rty. F~r~quently " bregkl up ~nto two dLnces one for the ball, after the grand march, ".~'~ :~'; I the ~Ide~. who prefer the ~quare "~" I d~ce$ of olden flmes end one for] ~ ~" L~k the youl~ger peep • WhO llke the, t The manner of the~ peop]e who n| Storages Division Manager Sup. l~r. Lucky Strike Cigarettes WHI Be Made At New York World's Fai Superi.tendenl Head Of Superintendent Re-Ddrying Plant Turkish Department Local Plant H ~. DODSON
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I. 0,",, _L t:j ..... ~ .~l ' , ~.,~, -:~= ~ .... llillli'tlllOdl • 'il il, ll'qlilOlli "/#i 'H ;uopuolu!.l~dnS "~s~V ~luapult~lu.l.ladnS "lssV ;l.illild rlt;~l~ rt, l.IaiUl,lUda(] qil~l,in,L lire|d ~u!zt.i| tu~'pu';i+]u.t-iadns JO P'U~H !m'iF'U'tiu!,aa ~l :,~ct~o~ ~ ,~I~, ~i~~,,~ c .,,.~,t , ~m ~ ,.to u ~,e-o pu~: p, m-:n:VlT ~r "r~,l,lw ,~ • • , d:u,~J , I • ~:ll)lU'q llq~q -olli • GOUI'4 o :tc,1.~-~ XI~O~IiLLL ~ ~'d,'dt~uD NuPI%~t~ rLtiL~<'Ltt kC'J,) ~B:~ aI~A s,PIJ°~ ~la°k ~ON :iV oP~.IAI o8 ILIA4. s°:ll°a~ll!D O~lI.tlcd £ai:~n"l
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96~0~E0 l. OH_l~ ~Ttlt,tPdgOIlI "I'v'l~IiSfl(I~II ~IO S~Illt~IS V l~II It~Li~I~t~11tflO~I . k ...... ~::~!ii!!ii!~i!!!!!!!ii Xkiiii:: i?¸¸ :::
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Tobacco is boughl according to qualit?, not qt antily, so ever?" baleh mu~t bc marketed at colorful aucliun.. *IERICA ++as trot the o,lv thin<'_" that C,+lumbus di~,:<+xeted in l IO2. Among other gifts presented to him b,. tire l.diaH+ ,~ll that eventful trip x~ert' .dd balls ridh'd ,d s,.ne pun_'ent leaf. Unable t. see anx ~<iod use f<~l them. h,.~cxer, the explorei t,>ssed his fir>t batch m erhoard, it ~as Ii<it until he later discovered h,,~ the West ln- diatls smoked the lea~es that he aim Iris sailors experimented with the practice arid decided t,, take s<,me -{ the =-tuff h,mie .:Is a curio.-itv. Thus C-lumbus is credited uith discovering t~hacco and introducing it t- the ci~ ilized ~orld. A little more than a celiturv later, t.- baceo ~as ihe decidinff factor inthe success of the fir~.t cohmv in America. The }ear ~a~ 1607~ arid a hand of Erl'_,lishnren under Cap- taiu John Smith had settled at JaineM.,;,tl. Theirs was a tragic seer). For the 11lOSt pail, they ~ere aristocrats ~h,J had never done a day's hard labor in their lixes. They had come to the New World f.r the s,,le purp,>.,' of finding gold and silver, but found only forbidding forests and unfriendly savages insteacl. They cut logs anti erected stockades, but their hardships and dangers increased daily. Although peace ~as finally made ~ ith the Indians when John Rolle married their princess, Pocahontas lithe had saved Cap- tain John Smith's life five years earlier), the colonists were threatened with the with- dra~al o[ all help from acr-ss the ,eean. By ROBERT PEARSON Colunibus discovered it and Shell hell)s to cure it and fashion it into vl)lll* C|lrlMInas slilokl~. ]heir financial I~ackels ~er'e disapImillted at the i-tal lack of g,hl and siker. Then olle dax P.,-ah<mtas suggested to John llo[fe that Ire plant a tr-1) of the tobacco Mdch the Indians smoked and send it to England. ~,nd that suggestion turned the tide of for- ttll!e f, ir the Ja,~estc,u n eol,m~, and hence f:,r earl,. 'xmerica. The first t,haceo ~as shipped abr,,:i~l ill 1613. seven ~ ears before llie Pitt, rims t,,uvhed Plvrnoutt'l Rock, arid it I,ecame p-Imlar througlmut England in i,x',:~rd time. Tielnend,us demand for \ ir- ginia t<~bacco sprang up ahnost overnight. Th,~ c<,h,rli,ts had indeed found their gold --in the ~ellm~ leaves of an Indian plant that huug'in ttteir curing houses. Millions of Jobs And tubacc,~ is still g,,ld. Exer sin,:,-the da~s of Johrr R,,lfe. t,)baceo has been one of America's greatest industries. Today. in 19 states o[ the Urli,m, on more lhan 4(~)J"g~) farms, oxer 1.000.000 nien are Lusv gro~ing an axerage i>{ 15{6(1.1~0~/.00~1 p,,un.ls .f t.l,acc, a ,ear. M~h; is worth b,,tv+e..I1 ~.;~1)().()1)0.t)()i{i -~!:,l ~}~00t),01)i). Eight huadicd t,,lia,-,., "a,:tories turn ,')tit iliiire than a hilIi.n d,,l!ars ~ort|! of lllanti- factared products e~.er~. '-,,at. Ill doing s, ell<'} ; ~,' "lllp[, >merit t:. ::early I00~00t)fac- t,~rx ~,a'k.'rs. riot eom~ti:~ warehousemen and th,,se engaged in reta{]irig tobacco prod- mrs ill apprt~ximatcI~ .LL(~iLO(]O retail out- lois %i <~llg m "he ira's ex'-..rts, leaf tobacco ranks third, after autc, m..Liles and eottan; an a~erage of 1.70,00~l.@is) pounds a year has been exp,>rted for the past ten years. 'lh,, stamps -n America's cigarette tmekages net the g,}vern lent more than $500~,000 a ) ear--~, hieh am.unt ~,.,uld have bought a,d s,,ld the Jamestm, n colony al~od man, thm.s. Tl~o facts at,out this a:::azhtg exi)airsion are siglaifica t frst. it has takeii place in :~merica: set ,rod, it has occurred ~Nng the last tx~,~ <<_,enerations. And these are tile same ti~,, facts that ha~e been outsta/td rig about e~ery irldustry ~e have treated in this series. As lolig as tobacco was a homely" crop fash- ioned by hand, its enntr;.hut.~c~::t'c* the world were in a comparatively narrow sphere. However, ahhouzh_ tobacco might almost be called a novelty, its production and manufacture became a parl: Of Amer- ica's industrial expansion. And when to. baeco assumed the aspects ,d a real industry it suddeulv develuped ~ast new markets. 11 I~ l',qO "I 03_'5;.039;:'
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~,,,alcd ,.illi-~s -f j,,b., am{ l,,,,~hled ],il- lh,,> v[ d,.,llar: ~,-rth .f },u-h.'-. f,,r a s~ure of .flier industries -from t'aathine}~ lu matches and fr.m sugar to, .<hall }lr,,d'ucts. a, uc .hall see in a II](}[l'lCtlt. Tobacco Made Not Born The difTer,':.-e bch, ec. tu},a~,,, and a,~x -tht, t farm or.t, i~ _-h,,~,,~ a! 1t> taltsct 1,~ !h,, termb.,]._'~ uhi~h the Lirmers tbem- -,d,t s u-c. ]'il~', >c]d-m speak ,,:" "';t,,~, in,'_"" t,,bacuo: thex sa~ the~ arc "',:raking'" h,- hallo. Long ago it v.a~ di-,'.,cre,l that dif- fenmce- in .--.il and climate l,r,,duce mark- v,{h differ,'.! t,d,ac,, plants. Similarly. it ~a- f.u,~d that di{lcreut tul,a,.x,, pla,,ts rc- ,{ui,e different ,ncLh¢,d.~ .[ curblg. Hence. "'making" t,d,acc,, has bin.me a hi~h]?, .I:,ecialized uud,'rtaki.g. N,,rt},. Ca,,,lina al]d \ irgima t-t,a,~ ,:-. !i~ht a~>] .~c~'t. a,c fiue-tu~ed. Budcx ;rod Mar,la:.d t,,l,a,.-s ate al,-. ligtlt, but ate h'._- .,,-,'t ;rod a,e I,e.t adal,tcd i',~ air-uriu~. 5ti',I ,,lhcr ~ari- ctlesare dark an{c]lwa~ and a:-,> fin'-vur,M. 'Nthoueh ~,..hall lrt'at va~[: .,( thP.-u t)[,,> ],i[cih in c, ,,m,.~ ti, ,t, ~, itl~ fit,. ::..mufa~ Im,'d pr,,ducts in ~,}5uh du.', at,, u-, d. Ihu -t,,l"~. ,,f }~i~{It, >omctinl,', calllud rlm.-cute, t. b,- ha, co max },e c.[1-[dered as m->t tj, l,ical aml iml.,rtan!, In l,.t'c/lt year. thl- 13 pe fia- ,,,nstituted .~er half the t-tal Lrfit,'d States tobacco acrca:ae and prmh~cti,,:!. Tvbacc. n'qui~e-- intcnshe ~uhi~ati.n. E,.'au-o o:f the c.m-tant care it require~-, and als¢, because ,ff its high ~alue per acre. it is grcmn on relati~cl~ small pl,,t.- ],~ m,,st farmers. A t) pieal Virginia t,r North Caro- lina fa,mcr begins making hi~ crop about the fir< ,,f April. ~,hen he l,repares a seed l,cd al.,ut the size ,of a ei!v 1.t. and s-~s it ,:artfully ~ith lin~ t~,bacco sveds, a table- Sl,uonful ,,f ,,hid~ ~,ill l,lat~t six acres. To I,tten~i~e cultivation *d I,>baceo starls in April. The q~ecinll? prepared bed~ lift, planted al;d thell '£'11~- ercd ~,ith a ehe,',v- cloth tt'nt Io protect the lender .-cedling-. Although the lllO,t ~Gdely u~ed types of tobacco are ]1 Ill'- cored. Intlll:I lillle~ ,.¢ilh Shell's special Tobacco Curing Oil. Ih,rley and Mar?land t? pes are alr-cured. II- Forlllerl? lllo,l lob:it- ¢o ~'a~ harvested b? cutting the stalks close to the ground. No',~ "prit,ting," or pieklng lhr h'axe~ in- dixiduallj a- O,v:, rip- t'll, i~ illOrl' pol,ulat. 1,5 + I,roteet the seedli,~-, he (',,x~.,s the patch ~,i/h a }rage sheet ,,f cl~eeseclc, th. "While the ?,mmg plants are spr. ti ~g. tiff' main t,l,,t .f laml must I,e 1,repared and f,.,lilized f,,r tfi,. ,,.,.,.{,ti,,n ,,f th,. , ,,,p. ll:,- the time all danger ~,f it.st is past. the ,.:']'~,t~irt,_.. s+.'cdJlI+os are tra,+splaitted, a fe~ at a tim!,, in rcgularl.~ si,aced r,,,,s. B, ,,rid- sunluwr, the field is tfiick x~ith strung, tall ,-talks, but their cuhixali.n is .exer relaxed. The cr,,t~ must he ueedcd b', hand ~,ith a It ~+'. aud as s,.,n as the seed head I,e- :_'ins lu [-rm. the plants are t,,p,~ed Ifiat is. the ],uds are I,ruken ,,ti sa that the emqg) ,,f the pla,t is conec,lrated in the le:n cs. Only a few oh,ice plants are left ~a~ing here and there, la|[ and i.tact, to proxide seed f,~r the next )ear's crop. Later. a sec- c,.d job of surgery, called "thinning." is required to ~,+move stem-bram'hes ~fiich might retard I +. dexel,qm,cnt ,,f the lea~es. 8T;. Ol 0350398
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Furlherm~re. like any other plant life, t,+- bacro i> sul@cted t,, atta,:k b) diseases <m ,,he sid,', and by in,.ects on tile <,ther. A hail slot m ]ua~ flatten the ~,h,,le cr<q~. F~ven light sh,mers ~rrv at tobacco farmer: the droplets ,ff ~ater act as tiny lenses, c+mcen- trating the sunlight until it burns spots hi the lea~'s. The t,+bace,~ farmer i~ paid al:- curding to quality, not quantity, and so his ~,,,rries are manif, dd. There are t~,o general methods +,f har- x esling t,d,acco. Formerly, cuttlnb~ the M,,dc stalk twar the grmmd ~as the uni;ersal practice. Tuday. hinderer, priming--pick- ing the lea~es individuall.~ as the~ ripen --is nn,re |mpular. By this method+ nearly e'.erv leaf reaches fuli maturity before it is hauIe, l u~,a} t,, Ihel,arn for curing. Curin_" time is the busiest peri,,d ,,f file farmer's ",ear. The lea~es, strung on sticks, are susl,ended ,m ll<des in>idc the ,,luare. log barns. Then the farmer builds tires in the kiln<. ~hich transntit their heal t, Ih,' i,-ide -f all th, barns thr,,t~uh flue-. It- ]n. is burning ~,,~od. he must ~atc}l tile tirr~. ,h,-,d~. f.r the heat must be m.,h'rate and stea+'l~ f,~r the tirst 30 to d;; h,,urs t,, tu~, the lea~.es a bright .range-.~ ell+~. After that the fire:- are built higher for another lg hour~ b,.ft, re the lea',es are really ttrt. The Carnival of Curing Time .\rid qil.[ the ~tcms arc not ,:,,mpletel., :ltd. s,, tile sap may yet run back and "'~cald" th,~ leaf tissue. Therefore. the fires mu.-t }+e held hi~zh. This is a ,:rtMal [,,int. '~'}li* farmer has slept ,rely in fitful nap- f,,r da},. The flue'- are s,, h,,t th,.~ mat , ra,:k, and at single spark ~,,ul,I be sufficient to set tile tinder-dry tobac,:,~ ablaze in a split secand. [:'or 16 more hours the kilns nmst be fired. So this is the time for the all-night harn parties which are traditi.n in the t,+- bacco belt--partly t,, celebrate tilt: curing. partl?, t.:, keep tlt+~ I,arn-t,'mh'r auake. C¢,'ests er(n,d around the tables ,ff ftmd all night. The:, sing h?,mns and tell ~tories and dance ,~.~ ~oort as tile atll'- lion is over~ the ba-ket, of leaf are hustled from the warehouse, above, attd onto the trucks of the pur- eha-er.. This load i~, bound for for- eign countries. leaf tobacco beint~ ~,merica'~ third ]arge,I export. It', great hog,heads, most cigarette Iohae('o is aged for at least twt~ :,ears before it is sent to the factory, This R. J. Rcynohls Company ware- house cruets 125 acre~. until the ~raying tta~n re'~eals that the to- bate,, is perfeelly cured and tim fires can be allo~,ed t,~ die. })irltlr!+s![ue as tbe~-e curing ~'llsl~ltlS are. they are ]maing before modern elticienev. 3,b~re and more farmers are replacing their ,'rude ~,,.,,1-burning kilns with modern .il burners, u,in~ ShelVs Special Tt,baeco Cur- i~2 Oil. ~ hieh has reduced curing thn+' and ,'iiminated tnallX (,f lilt? w+~rries which beset the .hl-fashl,m~.d farmer. Shell's T,bacco Curing Oil provides an even }],:at. And with an ,,il burner, a thermostat can be installed ~,hich will assume the barn tender's respon- sibility when his eves get heavy. When the flues bee,nine (lang+,ri>us|y hot, the fire turlls ,,ff automatically; when the barn starts to co,,1, the heat comes on again. The tubacc+~ 10 +t" tq 7 0 1 0 3 50399
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Harvesting cigar tobacco in the Com~cct icu! |{iver Valley near liar- field, Massachu- setts. From thi~ point on, elgar to- bacco will by handled different- ly from cigarcne tobacco; the proc- esses differ with the manufacturer. After aging, the tohaceo i~ sorted according to quality h? experts, then automatically ~,temmed. Thi'~ is an R. J. Re? nohl~ factory: the to- bacco will go into Camel cigarette-. leaves are cured e~enly and safely, their qualit.~ g0x erned by science instead of guess- ~ ork. Thus Shell may well have had a hand in making }our next cigarette mr, re enjoy- al,le. Instead r,f being tlue-cured, Burley (Ken- tucky~ and Mar~tand tobaccos, the t~o ~a- rieties ~dtich foliow Bright-leaf in popular- fly, are air-cured. They are hung in specially ventilated harns ~herc they are cured with- out the application of artificial heat. And in central Yirginia, western Kentucky, and northx~esh'rn Tennessee grow S-hie types ,,f plant which are fire-cured, in the heat and smoke of open fires. These are used pre- dominantly for special purposes, such as ~nu]f ,~I "'ltaJian" I} 1.~" ci~,ars. .'~ll]lotlg, h the ,hant .f the t~,],a,c,, m.- tmneer has been made faro.us to the Ameri- can public *~xer tile air-x~aves, n¢~ ,me C~lll fully appreciate the thrill generated t,~ that si.g-.,,ng voice until he has actualiv at- h'nded a tobaee, attcti,m. The night heft,re lhe big event, the auction t.~n is full c~f carnival spirit. The streets are crowded x~ il:h farmers hauling lhelr crops to the great ~ arel~u-es, t~ux ers for Illallufaf'lurers loat~l the ,t~eets, ~on,h'ring ~hat quality of tr~- bacco they ~,ilI find the next day and }tow much they will haxe to Md for it. Ware. h,u-emen ~, ork all night arrangin7 th+" ,'n~:l- les.- piles of yellow leaf. Through streets festooned with hamwrs parade blaring t,ands escorting the float of the Queen t~f the Tobacco Festival. Sales at 400 ~'ords a Minute 17 tq r,',~O I 03504-0(3
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~ili IL q Tigarettes Take the Throne (]i~tr,+tt,'- a~e b~ all ~,<hi~ the m,,~t im- portant sin~l+; pruduct manufactured II'~lllt t, ibac,:<, in this emmtrv, l~ut they uele w,t ah, a~ ~ s,,. Regular l,r.m,l> +,ere trot placed un tim market in the Uuited States until al,mt Ill65. and ira that ~ear the goxern- If'tent's itlCtHlit" frotll the tubaeco tax was SI l.ql 1.~5. Wh~.u the cigarette machine was im,.~t,.,l iu 1<,'~2. the In',~ducti<,u ~,as still li,,t t!ll+!tlTh tq~ k,'q> a lnilllerli factc,rx ])tlSl" half a <tax: producti,m ~,>r the ",ear 11475 +~as h>s than 50 million cigarettes. Ahmfl this time, hox, e~er. the machine ~as im- p/'ilted and Jnlerh:an hidustr~ :is a ~dmle ~ as expanding. Cigarette pruductic~n begaa soaring. By 1890 it amounted to two and a half billions; in 1912, more than ten bil- lio~ls ~ere turned out. But such figures shrink to insignificance heside last vear+s production of 164 billions! Because of the 18 The trained e)es of tile ill-pt'clor ~.tmt any de. fee/ice cicxarette iltnlnt,- diately+ and her deft hand.; .-notch it ont be- fore the packaging. ]'+~haceo, ne'~ I? flue- cured being removed from the log curing barn, Shell Curing Oil ha~ ~bortened eilrilig time, in.tared ~afety, imprm/ed quality. major pcJsiticm occupied I!y cigarettes in the tobacco industry, and als,, because some of America's largest cigarette manufactm'ers are Shell customers, it is interesting to look for a moment into a modern cigarette fac- h,rv. ir'r~,in the time the huge hogsheads of to- bacco reach the hands of the manufacturer until the white cigarettes roll out of the manufacturing machine, the tobacco is han- dled ~ith infinite care and patience. Since the leaves loft the curing barn, they have absorbed atmospberic moisture, so the first step is to redry them by passing them through a long, hot chamber. But redr) ing is only half tim process, for they are then rem°istened, this time ~, ith a carefully inca- i iiiiiijiiiiiiiiiiiiiiiii~ ii fq T ;40 I 0350,$01
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7 hogsheads are bleraded for the first time. The real blenctin~_,, hinderer, is an important step in itself, h, ~iar, t metal drums, tl',e Flrig, bt tul,a,'c,, lp+et'ts the :lark "r P,t rlC, an!] 3,Iaryhmd blends. Here to,, fit:,', aromatic leaves >f i nported Tu rkish t, d>acco are ustm[~ 1~ added. Alth,muh there are s,:,me straig|',l : +h,mesth' ,'i/atettes manufa, tute,l i,~ tIie [',til,+d States+ bx far the pred,m~inant types are the "Turkish and I),me~tic l]ic~ ds " Tim imp,~rtati,,n of distinctive [oteign types t.l,acco fr,>m Turkey and Greece has. sure t>tisingl) +.n,,u.,_.h. been partially responsible fi,r i,tcrcasing the et nsumptic+n ,,f +h+mesfic tobacco to its pre,ent huge figure l,v con. tributina to the p,,pularit} ++f tigarettes: After the hl,'nd,:d t,,bacc,, has undergone any spe< ial Ir'eattl~e:~ts fa'+,:>z,:+] hi, the inSi+ x idtia[ imtnut'act'4rer, it is l}+l]]ke(~" [()r at b.asl 2!- h,mrs: that is. it ix all.wed t,~ rest in a mi'-celhme,,u~ pile v, here the tina[ subtle exchange ,sf ttax.r and fragrance takes pla, c. After the lca~cs arc shrudded they are teadx f,,r tfit. ciear.tte machim.. Tim ci/art+tt,, ma, hmc Js -n,' +,[ tit,: mar, ~els of m,,dcrn industry. In one end gO shredded t,,hae,',, an,t a r, II ,:d cigarette pa. per; at the other end cmerue completed cigarettes, perfectls packed and cut, wKh the brand name l,ri,,ted on the paper. T4ii milhon a. hour is not an ultu-ual i~rl~duii. ti<m figure f,,r a m,,dern fa, tI'~ ~ + ~ltl(l ex{2~: ............. , ivarutte ntu_--t be perle, t ,+r it i. di~-,:arde¢{e The cigarettes are e~m~,-xcd aut,,niatica[I.~< i ~! !IQINHI t- the packaging machine. ~fii+'h c.unts O~ClII i t,,e,,t, ,:i,-arettes, ,,raps then,, and se~,ll,7 ; tin'm +~ith the government re~,eFtlle stam~'i"' .......... Modern cigar manufacturin~ is as sci- entific as cigarette manufacturing, although each cJTar mznufaeturer has his own rather ..... secret metho(!s ,~f curing and processing the t,,ba+,, be'lure it is finally fashioned. From U3tO. ~,hcn the manufacture of cigars in RT" , 01 03504.02
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This factory of the R. J. Reynolda Company. a Shell ett-tt}mer, nlallilt. factures Prince Albert smokit~ ter- bacco. The conveyor belt at the h'ft lakes the cans to I|H~ ;hipping rl*t)~u+ i'a,'kagcs of Philip Morris cigarctle~+ right, emerge in rows from the Shell- lubricated v, rapping machines in the new Philip Morris factory at Rich- mot.l. Virginia, ",,,here lhe most mod- ern equlpnwnt available for proce.~s- ing Iobacco and making clgarelles is u.vd. this c,mntry began in Hartf,ml, C.mwcticut, until about 1920, all cigars ~ere handmade. In tim last 20 )ears. t.mevcr, making cigars b> machinery has become the rule. The rea- SOIl is easi[} seetl if o.e compares the uork- manship of a modcrn cigar ~itlt one ,d 30 )ears ago. In addition t,~ thc:-e t~o major uses for tobacc ~, we mu.t m,'ntion smoking tobacco f+,r pipes, ,'hm~ing tol~a,','<,, a.d snuff. A c,+mph'tc article th++ h-n;tb ,+f this .he could ,.asil> bc ~ rift,., ,,n th. fu>t of tbese. Because pilw Sln,~kcrs ar4- the im~st in- dhidualistic of all the u-,'r- ~f t,,bacco, there i.. almost no end to the number of '"mixtures" marketed f,~r their use. These arc mixtures in the true sense: the tobacco is not only blended, but is mixed with s~ectening, spice-, aud other Ilavoring in most eases. The type of leaf ntost widely used far smoking tobacco is Buriey, from Kentucky. Chewing tol,acc,, is a lar~er item o~1 America's shopph~g list than nti~ht be supp.sed. The Flue-cured and Burley to- baccos which are now predumiuantly ciga- rette t~l,e'~ b,,th m+e their earl~ ri,e large- 1; to the eh,+wing tobacco industry. Today the plugs and twists are flavored ++ith licorice, sugar attd other sub-taoces. Last ~ear smoking and c]te~iug tubacco to- gether accounted for about 300,000,000 pounds of leaf. O~er 37,0<~,000 pounds of snuff '++,'ere sold last year• Snuff is puherized tobacco, and ~as once the largest single use for the plant. The. dandies of lgth century England sc, metimes owned hundreds of elab.rate snutT-boxes; and e~en today there arc t~o snuff-boxes in the Un[ted States Senate, ~hich are dutifully kept full by the Sen- ate pages. Today this form of tobacco is usualh, chm~ed rather than inhaled, al- though it is still finely ground, like flour or corn nlea]. Christmas is ah~avs a peak season for the tobaccu c+mq,anies, Ab,,ut 45 milli,m Amer[- Calls enjoy tobacco in one fornl or an,Jther, anti a large I.'tc,mlaTe ,,f that Imuibcr either gives or receive.+ tubacco in some form. So if you find cigars, cigarettes, or smoking tobacco under the tree the morning of:Dg cembcr 2.5, you can ref{eet, as you settle back in ~our eas~ chair and light up, that SIwll pr,;ductsv-i~l the fiehts, curing barns, and in the factory machines--helped con+ tribute t. ),ur enjoyment. 20 t+, • FI ]-,,,( 0 1 0350d-03
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The Benso.s BEFORE DRESS YOUR WINDOWS t~ f~T,.~O 1 03S04.0~
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CO TE T FOil IJECEMIIEll !,Vings for Aviation's New Ge.eration bY MA3. L. D. (;~.RDNER 3 Tested fo, Fun ...... 5v OLIVE BI1OOKS 7 Exploring America's Antarctica bv a. A. RINEII ~RT 10 Tobacco ....... bv ROBEWI" PEAII.SON ]~ Dear Mr. Shell ..... br Ct-.~NEV wu.t.t~vs 2l SheIKacts .............. 22 Shell People Y<m Shoul<l Ktl,,~ ....... 23 Shell Progress Qtiiz ........... 29 g-hat Do You Think? .......... 30 5IIELI• Pt{OGIIES:~ ['ubli,bcd MomMy b?' 0.. ~[tEI.I. OIL COMPANY INCORi'OR klED 50 x,X-'est .30lh Slrcct, New York City For em,t~lo}evs and thn:e en~aged in markctb~g Shell Prodtlct-. Nodfing cen- t airwd herein may be reprinted either ~d,,I]y or in part withma ,peclat pernli~iun. Copyright 193'~. Shell O,I Company, |~r~rp,,tal,d PriMed ia U. S, A. T.4Z d4on ON ]fie NEXT PAGE begins one of the nlost iinF, ortant anllOU FIt'euu~IIts we ha~e e,, er published. To A. J. 3I. tlamon, Manager of A~iation in Shell's Atlantic Coast Ter- ritory, goes the credit for originating a program unique irz industrial hi,tory, a pro- gram ~d~ich v, ill haxe a lm,f,mnd effect nn the future ,,f 'kmc,i, an axiati,m. It is ea[h:d the Shcll Ax iatitm Scholarships aml Awards Program. Planned to promote the stlccess o{ the Civilian Pilot Training Program uf the Civil Aeronautics Authorit.~. it is being administered by the Institute of the Aero- nautical Sciences, the society representing leaders, engineers, and scientists in the field of aeronautics. Although the indorse- ment of the program by an organization of this caliber is proof enough of its worth, the remarks in this article by 3Iajor Gardner are especially laudatory and launch the plan brillianth. Shell i's participating in aviation in an- other capacity this month. About a month ago, when )our attention ~as f.cnsed on the Chicago-to-Boston trip of Admiral Byrd's faro.us Snow Cruiser, Shell trucks were loading the Antarctic Expedition's boats ~ith Shell Aviation Gasoline and Shell Aviation Lubricants. The)" will be used to fly the four planes--including the one ~hich travels piggy-back on the Snow Cruiser--~hich r~ill be used in making the explorations which may lead to America's claiming a vast new territory. Details o1 the expedition's plans are told in the story be- ginning on page 10. Al,r.p,,s of the Christmas season. ~e rer-,mt:~cmt the st,rv of the ~ear's newest aml re.st ingenio,ls to_~ s, which ~ ou ~ iIl find on page 7. [t treats Shei[-eustomel Ke)sh:me Toy C.mpany specifically, and includes a n~enll.n of the Lionel Corporation. also a Shell user. ~hieh has made Shell tank cars familiar t. thousands of families this past ear. Take a h,ok at the pictures and you'll seeret]~ em ~ this )ear's youngsters, fn the field of dolls an innovation is Pl,mcchio; in the field of tt~ys, a complete radio sound effects studio. Wi~h so many gifts of cigars and ciga- rettes exchanged at Christmas time, l,,bacco makes an ideal industrial bi,,graphy this month. If .you've always wondered ~l~at the au,'tbmeer really saxs in his chant, you can find ,,ut in the article that ],egi:> ,,. pace lk This m,,nth's Shellfaets chart. ,m t,ase 22+ is particularl5 amusing and tells a strong salt', ~tc, r~. It'll repay a momep.t's stud}'. MAJOII LESTER D. GARDNER. M~o tells vou about the Shell Aviation Scholarships and A~,ards Fund in our lead article, is <me of the most prominent men in Amerieat~ aer, mautical circles today. 13esides being Executive Vice-President ~,f the Institute of the Aer,,nautical Sciences, ,,hich he helped found, he has an active, leading interest in no less than a score of other aeronau- tical organizatim~s. ..'~ fr,,m M_I.T..Major ( Gardner entered the put,lishinz bus- ~, ": -~r" - :i-ki, L: iness. In 1916. he , -+ .)r .. founded ,4viatiott /: :i .:)~¢'- " /~ .llagazine, the old- est a~iation maga- / zine nc, w imblishcd in thi, evuntrv; Ct.RDNER sh,,rtl~ afterward. became a 3lajc, r in the air .er~ice durb~z the ~,V.rht War. He ~ as President of the Aeronautical Chamber of Conunerce of America in 1926. and the next year he sold his publishing busine~:~. He has flm~n practh'ally e~erv airline Europe. co~ering n,, less than ½6,000 miles by air during his first summer there. This )ear he ~as again flsing all o~cr Euro~; ...... from Oslo. Nor~av. t,; Athens. Grebe, While there uas elected Honorary" FeRowM the Re)al Aeronautical Societ), which so honored only tuo other Americans in 66 )ears• For further inf,,rmati>n. ~,- refer ~.t, to g'ho's lFh.. And nm~, in the spirit of the season. ",~e take this opp.rtunit) ,,f sending to you, on Lehalf of Shell, best ~Gshes for a-- :fflerrp ristma AND A Da00p _ em gtar I:q 1" :40 "1 03504.06
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B~iness Week, November 11, 1930 MARKETING Pall Mall Finds a"Difference": 20% Other cigarette-makers walch resuhs, as an ohl brand gets a new burst of sales by going "longie." Two more 15-centers in same class. THo~¢II Cla.~nEl~g COXIpAr;It=S are tradl- ditionally mum a':~ut their sales fiffures, the trade has a prtqty gtx~d idea of the compctltlve standing. Sampling jnhs done ~ltl key dealers ~how that the big thret~ Came~, Luekies, and Chesterfieht~ drain off ahmt 75% of the busine~. Philip .Morris and Old G,,hl take another 10%. The remaining LYe: h divkted s.ratmg ffi myriad o| brand~ of greater and lesser importan~me selling at 10¢ a pack, some for as much s~ 50¢, Osm of these bnmds-of-the-field is Pall M~I. There has been a Pall Mall cigarette for 40 years. It's always had a good w~.me, mad, in the days when Turkish types led in popularity, it was a lender in its field. ,~ blended cigarettes became the popul~r leaders and Turkish types k~st pehtic fa'~ur, eke o~t~er. Amerit-tm Tobacco Co~ with s. leader in Lucky Strike, ~-.emed satisfied to let pall 5tall run along pretty much as it wmdd S~It New Source o/ Income One of American Tobacco's subsidi- aries is Amerietm Cigarette k Cigar Co. Its big 'business [5 cigars--to Corona. Back y Ca, Antonio y Cloypalra. As most everybi~ly krtow~, the cigar husl- hess isn't what it used to be. S~les of the 1Or-trod-up brands have shnmk something like 80% in the l~t l0 years, In 193S. the tread being what it was, American Cigarette k Cigar's executive maxmgement decided that the smart thing to do was to get another source of hi- Come. American Tobacco's George Wash- in#on Hill agreed. The end result wax that American Cigarette & Cigar pro- c~-eded to In.skin the Pall 5[all name frnnl the parent company (for &5~,000 a year) and ~t about the business of making pall Mall a leader. Compgl~y o~cials knew that to crack the volume cigarette market they had to h~ve something d~fferent. So pall Malls were made ol natural, straight tobtmeo in European style, and advertited s~ something different from the American flavored blends. But the natural tohaeco didn't fit the .~nerican taste. In two trod s half years, the COmpany could do n. mote thtat what. ia now ~e~xibed as "A steady little husitw~s." It was dear that the ~t~ I'.11 M.n w.s no a~er to Buzinvsv Week" Noven,ber l l, 1939 glo, ~ll o[ American '['ohacco's Sales Vi~'-Presi,lent Vincent Riggio That rela- tionship, plus the fact that young Riggio u~'d to work for American him~elL has lead to the rumor that RegenL~ were sent up a* a test balloon fur American But the interested parties say it i>n't sO Riggio put Re~ents on the market a}~lut a year ago, ['[e haml't tried for na- (it~t~al d~str~hutio~, vet h:~ e(n~fined him- ~If to N'e~ Erx¢l~nd and the 3liddle At- tautic Only atl~t'r~isilaZ ~} ~ar has }~!en in a fe~ rt~tt~gravtlre ~ecti,,.s of N'ew Ynrk arid Ne~ England-at the rate of ~t~.Yfl0 a month, which is small chttnge to the cigarette trade. Yet the *,rder~ have roiled in. and lt.lggi,~ has t~Gce had to move his Ne~ York [danl to htgger qttar- ter~ Pr,~hu'llon is said to run better than a nlillt~nt clgar¢:ttes a dos Oh~i- ~ud). llege~t/ ~ll~'('es~ had ~tm,.t]dng t~, do ~ilh Pall ),l;,lI gniug Inn~ie. 75,000,000 a Week And Pall ?.loll, although it's been in the fiehl only twn lu,mths, is Mrea,t) a far zreater factor /han Regents and l.eigh. tons combined Right now, Pall ?,loll pr~ duetion is 7&000,000 a reeek--and that's not enough to keep up with ,~rders The Pall Mall's "difference" is aFparent as soon as it's stacked alongslde one o~ the standard brands. It's ~0~o loaqer. American Cigarette k Cigar's need for an income diversifier. This year the to- bacco was changed; the cigarette became a fl~tvored blend similar in taste to the big brands. That left Pall Mall without a "differ- ence" to sell. First of Fseplember. one wa~s found--"kh~g size," Pall Mail became a cigarett~ ;~¢a inches long t.s ~ompar~d with the usual ~], Distrlbutkm ~a~ begun in the E~t and in California. First ad- vertlwments appeared in 15 newspapers 0a Oct, ~t. Within the last few days na- tional distrihution has be~n completed. And PaU Mall is selling as it never h~-~ before, and in a way that i. ~ttlng the whoh h>bac-co trade on its e~. Longiea Have a Ilislory Actually, of course, "king size" cigar- ettes are nothing new. Them have been Turkhh longles for I0 years. Ben-on & H~lges make several expensive hrands, and there are others in the lusty and curiosity markets. In the lx, pular 13¢ bracket+ Pall .Nl~lt ~'as predated by two others. Leighton Tobacco Co. started & longle in July, 19,'18, but the Leightons aren't quite comparable for they're of the natural, unflavored variety. Reg.nts, which have been going like ~ house afire for nearly a year, were the first of the I~ngies made in a conventinn~, i[avoted hnm~iiate ,liffieuhy is getting qniek de- lixr~ o[ machinery to make the longer tube~ and their packages lncldentally, the Pall Mall package is similar to those of the blg lenders, whereas both Regents and Leightons come in fiat, stiff boxes wlth hinged coy~r~a tyt~ of packaging that's successful in the luxury" trade but ha~ never gone over in the volume market. Pall Mall'* quiek success in getting na- ti,mal distrlbutbm stems partly from the fact that the tmme was already firmly established. But the new cigarette h~ been getting uttusuld trede support, and the ~'~m~n is phtin: Pall Mall is on [air trade at ~ 15¢ ~inhuu~ h~ dl tt of the slates ~,hich have fair trade laws. Nu other manufacturer in this mo~t competi- tive ~f all trades h~ e~er ~t lninlmnm prlee~ straight m-ross the e~.lntry al- though philip 31~rri~ ix cm fair trade ira Ne~ York PatI Mall is getting the ben- e£t ~f dea~er apl)reeiati~m. What's lhe .~Iajors" Future? The important question is: Are the maj,~r brands going to be forced into king ~ize? Right now, the smoker's goess i~ ~-~ g(~l a.~ tile rnanutseturer's American Cigar,.tee k Cigar officials say they m'ct Pall Mail to be No. 5 in the business H memths from now. If that haptwns, fl~i tff hmglvs ~'ems itwvit:th~e If the flood e~m~e~, the stat~dardlzed si~ is llk-I~ to be the one Pall Mall has plcked--~H~,~ inches lone. Pall Mall just zet~ in at th,, U~lla[ lax rate If it were any blzg,'r it ~ouh[ gn *~ver the 3 Ibs- ~'r th,~llsand elga~ttes Iimlt. Regents and Lelghtons are both oval i~stead blend, of round and are, c.nsequently, slightly Manufacturer of Regents is Frank Rig- lighter. R T ,'~ O "! 035040;7
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j,,..a,y r~. io;0 T O B A C C O 7 Operation Set for About March 1 For $500,000 Bull Durham Plant THE YEAR 1940 finds Bull Durham cig- arette and pil)e tobacco still beina manu iactured in t)urham. N. (7., hut in a ne~,. up-to the-n21IltltC p]aIK, not far removed from its origh~al factor.v site, where it had been pr,~ duced for about three quarters of a century. The nev." plant, which uilI go into operation about March 1, is ,,he of the finest aud best equipped sm~&i'a< tobacco manufacturing plants in the w,,rld. t;eforc its construct[in, corl<idcra[~]e st:td~ and ph'tnning was d(l[xe ill or,let t,) l,lliI]..~ ab(c{] an'." hnprovemcut p~,5-iblc in the hamlling and processln;~ of Bull lNuham Rcsuh: the plant is conshlcred to he the last \v,wd in seientitic alr-o-,mlithmh~;:, livh:ia:g, type ,+f equipment :~s<,t, and the :il'[al~<CJ!ilull! th<.re~,f I-recte, l at a o,st ,,! appl,,\hll:LZ,'!'~ R5 f:(:/ ~bc bulh]hw rest. ,,. a >1.: ,,f ~r,~tmd I(~4 hv 312 feet. It is c.nstruc~cd -f sin_], rehff,wced cem crete, and brick. Sl~rinkicred ,~n,.- hundred per cent. It consists ~f five !t--rs :m,] a basenu'm. and embraces more than three acres of {lo,~r space. Each tb~r has approximately five thous- and square feet ,ff ~xiodows. affordhl~ a maxi- mum of da)b~.ht. "l'lurcareom]m:Mi(nls locker roolIls, Iavat.rles. ail(] sb/;v, cr5 !~)r the tlse O( 'he employees. Can Switch trom Bull Durham Unique feature of new buildin~ is that it may be readily" used either as a smoking tobacco fac- tory a cigarette l)tant or a st.rage wardmuse. It was designed by Francisco & tacobus, archi- tects and engineers, md built "t)v George \V, Kane ,)f Durham, N. C. From quite a humble beghming, prior to lS70, Bull Durham has advanced steadih' year after year in production, t:ven ulth the addition of a night force at its ohl quarters, it was found to be quite a problem keepln~ up uith a demand that continued to climb. Ge,)rge \Vashing'ou ttill, presk!ent of the American Tobacco Company, tbcref~Jre, directed that a new phmt be erected, which should bc modern hi every respect. ~n,I ~hich should ha',,re a capacity tha( ~-uh; adequatcly take care .f the Bull Durham demands for st)me years t(~ come. This has been done. By WRIGHT E. THOMAS Staff Writer tor TOBACCO NEW BULL DURHAM FACTORY Most modern structure for the American Tobacco Company at Durham, North Caro- lina. almost ready for operation, to meet the qrowinq demand for "roll-your-own" ciqa- rette tobacco replacement under increasing State and local tax leqislation. ju,t happen. Two of the f.remo_-t re~>ons ;ire : (1) strict adherence to quality of tobaccos used ; and i2} in~arh,bleness i,, l)l~-nding thereof, re- suhlng in a product that is as full in rich aroma and smoking enjoyment today, as it was a generation or even {wo generali~-)ns ago. Of great importance, al_~o, is that the men respansible for tile hlendhlg and manufacturin:j ,,f hull l)urham know that-- Quu[igv of Product /s Essential to Co ntin,dng .%~ cc,:.,'s Iherci~rc. they are particular in seeing that the ,aork under ti{eir sui,erxi.hm is F, erformed whh the tlllll()St tb()t'( )kl~hlleSS. Charles K. Neiley, ,.iceqJresidcnt, is in charge ,,f all nmnufacturina operation.- of the company. 1,4m A. Crcvae and \Villlaml If. t)gsbury as¢Nt i~im ,rot each haxc the title o[ assistant to ,,ice prcsident, l'rcston L. Fouler is the branch m:ma<er who will be in charge of the new Bull I)urham factory. Two Chief Growth Reasons This thoroughness in connection with Bull Demand for Bull Durham, of course, did not Durham starts far ahead of its bein¢ manufac- tured, because out on the tobacco markets the buyers are constantly, on the alert during the buying season, for tobacco that is of right color and quality and nlberwise .uiiabte for Bull l)urbam. Making Bull Durham Tobacco After purchasing of suitable leaf grades by leaf buyers, tbe :,,bacco is ba~:dlcd and packaged at the prizerF f~r shipment to the redD.ing lqant. After redrvin2 in up-to-date mnehines, the mbacc,, i- carefully packed in hog~heads. uei;zhcd, marked, and placed in storage }{ere it relnaillS In a;ze. After bein:~ properly aged, the various grades ;!re x~.ill]/trgoAi1 frr~IIt -t,)ra~,.: i11 fotaitttl;t propor- [i~in, and dclixcrc,] fit this ?3;a!n!er to the T]i~\V }:till [)nrb:m! ld;i:et. The bhm,l i> rhv:l fed iuto a breaker machine. .............. ,,,hich .epT:7<c- tl;e hands ~f leaves, cutdng Lh,.ru in piccc~ ~uhahle f,:c- feeding to the cut- ih~ n~achhw< }b,uc~cr, b,.-fot~ feeding to the cutting machine-, ti~c tobac,-o is automaticalb" conveyed to an (~rdcring and a drying machine u hicb cnnditi,ms it. The cuttm.; machines differ in the number of teeth ill one lnaChlrle a> c{,mparcd to another in an ascen(tin.~ ratio. Grain of suitable size is extracted at each cutter bv fl~e use of sieve.s, and all the picccs of lcaxes t~o ]arge to he suitable for grain are automatically conveyed to tile next and finer cutting machine. All nf the grain viehted is then passed over a series of sieves and separators, in order to ex- tract any remaining pieces of leaves too large for ~rain and to remove any dust. After this, the grain is c,m~exed on a belt to an automatic re- cordin:~ scale which weighs and dumps it h~to a chute feeding to a conic)or belt. "['he grain is ~hen automatically corn eyed to specially constructed bins to lay there in storage f(>r a cerlain period of time. After this stora.~e period, grain is removed frcm~ bins by_ a pneumatic <uction pipe system and fed to a belt conveyer whereon it is sprayed with Rull Durham fla(or. ........ To Bins for Flavored Grain Flavored tobacco 7.rain is then automatically omveyed by beIts to the bins specially con- structe(l for'the flavored grain. Here it remains for another period of storage. When this latter storage period is completed, DURHAM'S TOBACCO INDUSTRY FROM THE AIR Left. Lucky Strike and Bull Durham plant, American Tobacco Company; Right, Durham'e looee lea/ floors, fqT,',-¢O "1 03S0 08
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s T 0 B A C C 0 ]<,,,,.m," ts. tow "BULL" MARKET DAY AT DURHAM Left. One of Durham's thirteen tobacco sales warehouses; Riqht, Briqht leaf awaitinq sale at the Star Brick Warehouse. the Bull [)urham flavor has permeated the to- bacco grab1 and the :uonm .,f the var{,>us gr:.k'~ m the lficnded vr;tilt tuts interchanged with ~mc m,,ther. Blcndin; ha'~ now becu c,nnph'ted m a thorough manner an,l the grab'` is ready t.) ~o to the packinv machines. The tobacco Fr:fin is i.~aded in t. p,~rtdfle >q,pers. Specially coustructcd w..}den :.[BJ;cls 2r,: used for ~his pti:-ptbse, Thev. :lrt: COIlS[F',h:[C~t ,:,i hard w,.M and--u hh use - attaiu a :,dzlss-ll].c .urf:,ce \cry much Nkc the tinish ~m line iurui [~i': c "['hc ..:r:[iH [.>adc,[ h~.i,pets are (hi the fl..;r a:.:.,~c thL" packmK department, aud as ucL'dcd ~hCV arc. v,i/ecled t}'~er k~l-a~.[D, CHUteS that fCe, i the gI'aill to [l'`easul'iIi'~ de,,icas :ltu~ched to tl~c packing nlac}lines. ),[castl!h*~ de\ ices accur;~:cl)' :'`/t-:lSlAre the exitct q'`EllltiQ/ (li gI','l[ll I/ccess;ll'\ [se~en-ci~hts oi au ounce] to fill the sinai} muslin bag. .\ccuratelv i'`lcastlred qtlalltitie$ ;ire aut-matically dr{:pl,Cd h~to small metal chutes .n the packing machine to which at the ,M~er ~-nds of these chutes ;ire att;mhelt the nlus]iu bags. .\s the bags are iiHed, they automatically come hi contact whh a renutrkahh: device als. attached to the packing machine kn,,~ n as a tier. Inqenuity of the Tier This tying de, ice with its untiring bv,,nze ringers picks wp h'` rob<Mike [ashhm the strin.~, i~n each ha'~, dril%vs ttld [,diots ttlt'I![ Bags of Bull l)urham :ire then :m~.,matticadh passed from <me altae'hment t,} another \~itlliil "_he packin~ IlladliIIt u,'hcrL'¢)ll the rc'<erlUe ";tamp. '.,am!. gratis bookl,ets of cigarette !topers and the !abel are affixed in the .rder u;m;ed. Finished bags of Bull l)urhau~ are dciivcred by chute from the packlm~ machine !o the larve ex:m~ining ~able at <tch nmchine, Here the t,at:s are .crutmized by experienced examiners wh. p~SS froIll I>lle 11]aCt!i!lC tO another, add all ~hosc Da~:: that pass ittspection :ire Ill()~,cd t{i the eii(] o/ ~he table where they are packed into the /an;iliar two dozen card~ board cartons. Two d ~7CI1 cartol'`5 arc a'`l[~}iH;tlicalh" CDii;eved bv a belt to the hot scaling machine, wherein a sheet of heavily waxed paper is wrapped around each carton and hermetically-sealed. This added prccav, tion. an additic, nal cost l. tile .\meric:m I'.>bacc. L',,mpan3. ak!,- prc<cr~ati.m .,f quaIit3 aim :lrouta t Jr []it: pr,)duet. \\ax B rapped and hermelic:dly-~e;ded cart.n. are thell packed in ctmt&inels "~,hicb }lave a capacity of twelve cartons each. I',ull Durham is then ready for shipment and to brhlU ~lllOk{rl.,~ [)]e;ts'`It'e [ll'coiiSlllllers \vhl~ :lYe !oc:ued in evmy part {,f the world Buildinq and Equipment Contributors Fo]Iowin~ ~rni< wcrc mtoilg fl~o~e that con- tributed to the Luih!iH~ and c{luil}phL~ of th,e ucxx Itul/ ihu'ham each.v: ] )c-{gncr~. ]:~auc{>o ~ ~Q .];tcobus ; general con- tiacu~r. (;c,.r?e \V. K;mc: structural steel. Beth- lehem -";tee] (orl!l}an3 ; ccrl]en[, thliversal-Atla> Cement CMmpan}. fr{m~ I,a Carr {of Durham; glass, l'htsburvh Plate Glass Company; roofing, P, arrc!t C.:npany ; s/in,l,,w,< I}ctr.lt ._<reel Prt}{I- '`It[ S (.~t till p;t Il~ , \leo :tit- o,ndhlimhiK Cf~lllr;tclor, l;ut?nso{I Ntacev Air ConditioninG Inc.; compressors. Carrier Cmrp..ratlon; f:m> ;rod pumps, };uffalo l:orffe k'.mf,an~. ; m~,t,~r-; and turbine. !;,-ncral Electric Coml);m} : c,mdcnse~s, Ross lie:Her .K Manufacturinv ('~mqmu~ : controls, Taylor fn- >[ g'`llllelIt (_'O111 ]litllie5. .\I<+> plumbin., contractor. Rowe-C~,~a~d. Inc. ; c, werimz, J.ohns-Manvillc Co~ I}-rati, <. Also electric o,ltrac!or, Thompqm Eleclric Company: nmin .',vitchb. mrd ;rod trrm.formcrs, {;eneral Klectric C,}U]lmny; pouer panel>, .";quare I} Cc, mpany; llghling l)anels, Square ] ) C.mpany : wire. tiabirshaw Wire & c'ahlc Company; couduit, \\-alker Br{~lher>: lightin~ fixtures, geniamM Kh'c!ric X[:mu/:tcturirur L'OI'`IDatlV. Also >i,~hlkh'r o.macu,r, G:im]elI t,,mp:,H3: clc~at.,r ,.,ntract~,r. \\e~thro.,k t<levat.r t',m/ p:my: hcat{ia~ ctmtract{)r, It:t;~well I'hml]!i~l;., & t Ic:t'`h~:: Company. Also dr;ers, l'r..ctor & 5chwar'`z: c~,u~cyin; cquipmen(, kink-Belt C,m~pany ; tobacco cutters. Sprout. \Vahlr.n & Company: screens. Orville 5inlpson ~omllan) : exhausters and blowers, B. F. Sturtevant Compan.v; packing equipment. .\merican Machine & Foundry Comp;mv: dust c¢.llec'.~]r<. Pan~L'.orn Corporathm. Modern Air Conditioning At Bull Durham Plant By ,~. O. McGARY Of Buensod-Smcey A~r Conditioning. Inc. New Ilull l)urham plant, recenth b=: [ ~ by tile kmcrican "lohacc~) Compan.v, in Durham. _Q C.. in '.<coping with theh" policy has been eqv.ipped \,.'id~ tIae most :noHcrn ah omdith:.nhP2 mud re- frigeration equipment i<)r c.:)ntr,li!ing both }~iI:~li~titv. ;111{1 [cHlt!crattire t}le VcTtr r!~kllld kir condltioHhu., equipment omsists ~.f Sour central stath3n type dehun:idi!ier~; t',v~ of these, each handlin;r 43,000 CFXI. suppIy conditioned air for the Fifth floor ~ where hiffher humi,lities :,.re required:~, these systems, bein~ located in penthouses at the n.}rth and south ends .[ the building. The other two setsof alreonditioning equipment for supplyina conditioned air to the t]rst, second, third au,I fourth floors are hmated in the bascmcnt :it Ihe S¢~Ut]I and north ends of the buil(lin:Z, each baying a capacity of qI_. ,~.(.R) CFM. The chilled water fr6m each set ~f etluip.= llle]l[ IS returned tO a C{tP,'`IIILIII undergrou!ld tank h,catcd in OR: ,:cnte~ +~f tl~c buihih~g ahmg the east wall. Rciri:zcrathm equipment, which consists of t~,, Carrier centrifugal machines, -he (~f which is electrically driven and the other driven by a steam turbine, is locat~d hl !he basement in ap* proximately the center of the building Mong the <>: wall. The tw,) refrigeration math t es have k om~!,ined capacity .,f 325 tnns of refrigera- !ton. \ f{n'ec'd dr:fit t)pe c--]in:4 t.}~cr Ioca!ed on the roof furnishes con,.]cnscr water !r~r both t~e re:ri:zeratior; machines and for the :qe;mt turb{n¢ ,:,,u,lcnser. l}ue cami,m h:~< been !akcn to pre~ xcnt o:.rr~,si,m. ~xhich is ,.'cr~ e~)mm,,n t~, 'dl air c,)ndhioning cqtdpmeut the dchumidii]ers bei'ag f;~!,rit':ued IJlf st;linlcss ..tc..]. and :ill "he cold 'aatcr piping installed in red brass. Room temperature and humkIitv controt tern was designc, l an,l installed "by P, uens~'~: : Stace)" Air Conditioninm Inc.. using air aduated type inst rl.lnlerlts. In the design of the air conditionin;~ la;'out. there were IiUlllerollS pri~t~[emc, eMe~ltlrltcred-th3[ OLDER PLANTS OF THE AMERICAN TOBACCO COMPANY AT DURHAM. NORTH CAROLINA Lett, American Tobacco Company'~ Luck",/ Strike and Bull Durham plant; Center, Local warehousemen and business men who are coope- ratine to assist in increased sales for the Durham market; Riqhl, in foreqround, ball park and the Big Bull Warehouse, which burned in June. T ,',q 0 1 0350 09 ,, ~Hmil'l"" .....
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ADVEii'rlSli~6 & SELLING DECEMBER 1938 Which Puts More Power ill Your Money or Your IIARK fflSE31~N Advertising-- Appeal? Director. LahoratoO" ]or Adrertisi,g .'Innl)si.~. .\eu" }or\ THE impressiun is ae,,erally s}laled b} admen and olantlfacturers as ~ell as the public- that ad- vertising stleeess Splillgs [r4~III tllttllt'X rathcl" lhall creative brains+ If thi. ,'aruwt [,e .c.lched bx cre, lil,h' exidem:e. admen ~ho~e stock-in-trade is a talent fm twu ideas had better search for ditterent emplu)ment. Toward the end of the artMe on R. J. Reynolds pub- lished in its August issue. Fortune says: "'lf the recent course of the cigarette among the Big Three has pro,,ed an)thing saleswise, it is this: that the popularity o/any one make caries almost in direct pro. portion to the thrust o/the advertising dollars behind it." It happens that this statement had already been con- tradicted earlier in the article, but its unequivocal wording may have left the impresshm that, after all, "it was money that made the Camel g~,." Elsewhere, the article stated: "Of these themes, the ,me that . . . really marked the turning point in Camel sales was the 'Get a Lift' eampaign of 1931.'" And the assertion was made that the IS-billion rise of Lucky Slrike sales fr,m 1928 I,, 1931 was due to the fa(t that "'~;e,.ge Washington tlitl t',urst upon this irmt~t'nce ~,ith his exhortations to smoke Lu,'kies f-r 'Y-ur Throat Pr.te,'tion." f,,r keeping slender . . . and because "[t's Toasted'." This ~as a definite c,m,'essi<m that an adxertisinb~ appeal rallwr than tnone'~ ah)ne t)i-otlghl <ale¢ success. The cigarette business and its histm~ happil} pr-- • .idc thc necessary c',id,.'J~- h. jud~.c fi,t: ld,lhe ~,,i'th of the advertising appeal and the appropriation. The three leading brands~Camel. Lucky Strike and Chester- field--are similar in character and taste. N,me ,ff them possesses an) special "feature" or sales "story." They have been fighting their competitive advertising battle with blue chips long enough to afford an evidential record. They have used all the available media for lnas~ impression. In short, they provide all Ihe major "con- irols" demanded by the analyst to help him reach an answer to the questiou. "'Is it mouev or appeal that make., advertising successful?'" I+et's anabze their record during the past nine years. Chart I shows the advertising and sales history of the Big Three based on the following figures published by Standard Statistics and Media Reeor&,. The advertising [36] exl)enditure tigures include magaziue ad~erti..,iug, news- paper adverlising in 10 largest cities, an,l radio time. CAMEL CHESTERFIELD LUCKY STRIKE S,tle,~ A,h. [~ ~l'. 5rtle.~ ,4dt, }~.~. 5at~~, ..Idv. [~'xp. (Bd- ~ tel. , Bd- t.lliL [hT- (Mit. lions; lions ~ liurzs~ li,ms~ lions! lions 1929 40 1.9 1930 38 4.8 t931 33 .... 10.0 1932 24.6 2.3 1933 26.5 10,2 193.t 32 10.3 1935 37 .... 9.2 1936 ,13 .... 9.0 [937 ,15.5 8.-) 26 . 5.2 25 5.9 2 t..6 9.1 21 11.1 29 7.5 33.5 9.5 36 9.4 38 8.9 Careful stu,t~ of the chart ,,|,vi,,ush 36,4 6,5 42.6 , 10.0 44.6 .13.6 ,3"/" 10.8 37.5 7.1 33.5 . 8.1 32.5 5.5 37 .... 6.g 38.5 + 5+6 reveals no con, :-istent relati.u l.'t~e,'n exl~+'ndilure and sah'>. N( tice that. in the ,.ears 1929, 19311. and ]93[. v, hr/:l:t Camel expenditures were rising {rmn t~o t~+ ten mi[|io~ Canlel sales were dropping fr,:,m 40 billions to 33 b[l' It,ms. It is true that an expenditm'e decrease fr++m ten t,, h>s than._'~l ~, millions in 1932 ~,as a,, ,,ml,anied by+ a sales decrease of 8.1. bitli,ms: and that 1933 saw an ,'xpenditure increase to 1] milli,,ns and a sales increase ,,f two billions. But from 1931 t. 19.%. ext,+mditures decreasetl fr.m lO!i milli,m~ t. 3+ :, ufitli,m* ~ddle sales +,,+reased from 32 billions t. l-R.5 hilli,m.. Chesterfield's ~ear <,f large.+! cxp,+tt,l~tute ~ 1932~ brought its iuaest p-ira in sales; and. ~dtb ad,.ertisin~ expenditure decreasing from 1931 to 19X7. Chester- field's sales curve shox~ed a stead? i.cr+,.~e. There appears at tint glarl, e to be a ,'loser parallel behveen expenditure and sales in the case of Lucky Strikes; but even here it is not tlose enough 1o be called cm~sistent t>r conclusive. \\'Mh! Lmky cxpenditmes '~'e|'|y fldling in 1932 and 19"I:~. ~alcs ,~,qe tcS~-. \\hile ex- penditures were rising in t933 and 1931. sales ",,.ere ]ailing. And the reverse ".~ as true bet~een 193-t and 1935. Some ,f these inconsistemies ma~ be partially due t,, the time-lag bet~,een expenditure aml il+ efl'e+'ts. Thitt is. a high expenditure in one ,,ear of fdliw, sales ]n~v • • r. be followed by a period of increased sales, e~en though expenditure remains the same or falls oil But there seems nothing in the broad history of the three hrands = RI':qO'I 0350 11
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to lead Lu tile com:lusi,m that ":the popula[it~ o[ an~ one make ~arics almost in direct pl'uportlon tu the t~tt'tlst of the advertising dollars behind it." To what can we. then. attribute such variations in p<~puhtritT,, which have seen six majur shifts in sales i.~sititm in nine years without changes in the character ,,l the products? Chart II gi~es a comparis,m of advertising appeals and sales in the case of Cancel. The folh~viug rmlew ,f appeals and sales---covering a period from 1929 through 1937--. gives a m,~re detailed pictmc of the relatixe ~alue ,~f these appeals. Although tltese facts show the individual history ot each o[ the • leaders, it is known that collectively, the Big Three have been getting a steadily smaller share o[ the total market ever since I93I (accounted for in large measure by the rise of Philip Morris, Old Gold. and the ten cent brands). J"igt res bel,)w al-o indicate that Chcstertlelds >uffet'ed h'a-t h,,nl the effects of the 1932 depm-si,m ~alley+ As any careful ,,bser~er kno~'s, Chesterfield. has been the most consistent of the three in the matter ,)f appeals. Its slogan, "'They satisfy.'" and its steady emphasis on mildness, taste, and pleasure ha~e invariably provided the public with positive, credible promises ~f benelits. It has not g/me in for sensational appeal- or spectacular layouts. The only imp,)rtant vatiatiu~s iu its advertising have been relatively minor chan~_es in the character o1" illustrations and layouts, and its radiu i)ro~ram>+ Here is its nine-year advertising hi.t,,rx as represented by catch-tines, ilhlstration schemes, and rati,, plo~ram titles : 1929: "What a cigarette meant there . . . \":,'hat a eigarette means here.'" Story pett res Lwar vs. current daily life). r37] I,t. tq 1" e~O "I 03504.12
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50.000 NEWS !-'- .... '"L r. r,s Go!," 1931 (Approprio*donJ S10+000+000 1932:S2,300,000 1933:$10,200.000 19,30: "On skis it's balance--in a cigarette it's taste." Seasonal action pictures. Sales decreased one billion. 1031 : "l'~ e shipped on a South Sea tramD-?.et you'll find me just around the c~rner." "Gu,,d---the~'ve got to be good." "It so happens I don't smoke, but if 1 did . . ." Story pictures. Social situations. Direct ap- peals to women. Sales decreased 400,000. 19.32: Cross-blending. Radio: "Music That Satisfies." Sales decreased 31,,",_, billions. 1933: "I really don't know if 1 should sm.ke." Pic- tures of women. Radio: Music. Salts increased eight hillions. 19,74: "A cigarette is the mildest form of tobacco." International reputation and sale o[ Chesterfields. "It means something." Radio: Philadelphia Symphony. Sales Merea.*ed 4~'.3 billions. 1935: Story pictures. ("Land sakes, I do believe FII try one!") Quality of cigarette paper. Taxes paid by cigart.tte manufacturers. Radio: Kostelanetz. Sales in. creas,'d 2!._, billions. I9.16: Special emphasis on "They Satisfy." Situation pictures. Radio: Kostelanetz and gnest stars. Sales i,crea~ed 2~ billions. 19,17: "Chesterfield wins." Pleasure. Situation pic. trees. Radi,~: K.stclanetz: sp.rts column. Sales in- +'rea~ol 1., hilIi~,n. \Vhen the sales o1[ all cigarettes picked up in "33 and "3 I. Chesterfield sales rose faster than those of the other leaders, passing Camels in "aS and Luckies in '34. Their rise was steady until '36. Since advertising expenditure incr,+ased during only one o[ these years (1931', the sales increases must be attributed to steady, conserva- tive. positive, credible advertising appeals. The strength of Chesterfields during the depths of the depression, and their quick rise after 19.32. may also have been partly due to the direction of their advertising to the higher income brackets of the market which were least affected by the redurti~m of buying power during this period. Camel advertising histor.v may be briefed as f,,llows: I929.31: "Pleasure." Blend and tobacco quality. Lit- tle or no text. Conservative, "static" illustrations. Mid. summer, 1931, the "Humidor Pack." Fall, 1931, com- petitive: "Nature--not parching--makes Camels mild." Radio, 1930-31, "Pleasure Hour"; 1931, Musical Va- riety. Sales decreased 7 billions. 1934:SlO.)O0,O00 CHART II: RELATION OF CAMEL ALES 1932: Competitive [no parching). Freshness (humi- dor pack). Style pictures. Radio: "Camel Caravan." Sales decreased 7.4 billions. 1933: "lt's fuu to be fouled" !magician's tricks}, and news-picture technique. Fall, "Never get on your nerves." "Stead}" smokers turn to Camels." "Never tire your taste." Radio: "Caravan." Sales increased nearly 2 billions. 1934: "Nerves." "get a lift with a Camel." New~- picture technique, Testimonials and pictures from sports world. Radio: "Caravan." Sales increased 51~.. billions,. 1935: "Get a llft." "Don't get your ",rind.'~ News- picture technique. T~timonials and pictures of .utdoor people. Radio: "Caravan." Sales increased 4 billi,ms. 1936: "Lift." "'Netwes." Money-back offer. "For dl- gesticm's sake, smoke Camels." News-picture technique. : Testimonials from chefs, hostesses, restaurant proprie- tors. Radia: "Caravan," Benny G<mdman, Jack Oakie~ Sales increuse,t 6 billions. 1937: "Digesti.n.'" "Lift." "Nertes.+" "Largest sell- ing ~:igarelte." Radio: "Caravan" and guest stars. Sales ..... increased 2 1/3 billions. While Camel expenditures returned to 1931 heights in 1933. Ihe first year of their steady rise. attd increased >lightly in 193k they have been decreasin,~ ever since. ~.'tYJ, each ~ear has seen a sleadv inctea+e in sales. Ex- amination of the. themes, appeal-, anti treatmerds used ,turi,,g this l)eriod offers implicit t'~i,]encc that the i]e- parlure from the quiet, static conservatism of prc~i,,us )cm~, whi,:h ~as essentialh p,r,' pnbthqt) advertising, accounted for the change in public attitude toward and interest in Camels. The "lift" and "digestion" appeals, which were supported onh" weakly by seienlific evi. dcnce in the copy, won attention aml belief through Iheir positive character and the testimonials built around them. Their effect was to induce wishful thinking lead- ing to mental and emotional convi,-tion. All the evidence favors the conclusion that they worked, and that the)" were predominantly responsible for the upttirn and steady rise of Camel sales. The Lucky Strike history offers both negative and positive evidence that appeals have been the answer to sales. Prior to 1929, Luckies had reached first place with their "toasting" theme and the health appeal ex ..... expressed irt "Reach for a Lucky instead of a sweetY [38] tq T,'RO 103504+13
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;3S: $9,200,000 1936:$9,000,000 ~O APPEALS AND APPROPRIATIONS. t929: "Sueet'" approach continued. No throat irri- tation, n,~ ,.uugh. "'It's toasted." Testimonials and pic- tures ~+f sp,~tt-nlen, screen stars. Ziegfeld girls. Radio: [|,Ire Dance Or,'hestra. 1930: M.dification of "s~ect" theme to "When tempted w overindulge, reach for a Luckv. .... Future shadow" illustrations. "'21).0;'9 physicians say Luckies are less irritating." Radio: Rolfe Orchestra. Sales increased more than six billions. 1911: Ultra-~ iolet ra) s used in toasting, supported b~ cong~atulatim~s of prominent business men. "'Consider ~our :",dam's apple." "Don't rasp your throat." Screen stars testimonial, and pictures. Cellophane pack. Radio: t/rdfe Orchestra. Sales increased two billions. 1932: Screen stars. "Cream of the crop." Inhaling. "'Xature in the raw is seldom miId." Radio: Crime Drama: J a,'k Pearl. Bert I.ahr. Sales decreased more than se~,'n billions. 1933: Sudden turn to nltra-eon~ervati~m h~ layout and appeal. Mildness and character. "Lu, kies please." "Cream of the crop." ~ituatim~ pictures with captions. Almost no text. Radi~: Crime Drama; Jack Pearl, Bert Lahr. Sales increased 12 billion. lO ;1: C, ms-r',ati',e ad',ertising em~tinuvd. "T}~e height ~,[ good taste." Better taste of center leaves. St',le pho- nographs-no situatimts, l.ittle text. Radio: C,',ntinua- tion of 1933 program to, October. Then Metrot',,Aitan opera. Sales ,lecreosed four billion,.. 1935: No change mflil nfid-vear. Then, "'t am your best friend-I am ",our Lucky Strike." I:all. social slt- nations with caption, "No thanks---I'd rather have a Luck',." Radio: Opera to April. Then "Your Hit Pa- rade." Sales decreased one billion. 19.36: "A light smoke." This campaign was tempo- tartly interrupted bv one on "'less acidity," but was re- instated in late summer ~ith st',le photographs. Radio: "'Hit Parade." Eih~in C. Hill. Sales increased 4~.', bil- li-n~. 1937: "'I,ight Smoke." Testimonials and pictures of ~creen stars. Radio: "Hit Parade," Edwin C. Hill. Sales increased l'l~ billions. Reference to the sales chart indicates that Lucky sales began to slow up when the "sweet" theme was buried under the avalanche of protest from the confectionery manufacturers, and took a sudden drop after the "over- 1917: $8, SO0,O00 indulgence-future shadow" approach was abandoned. While eritMzed by many people, both these themes were strong and positive, offering definite benefits; whereas the themes that folluwed ~ere either purely discursive like "Nature in the raw." or ~eakly positive like "Lm:kies please," or snobbishly emulative like "The height of good taste." Going down with the rest of the industry into the depression valley. Luckies' real revival in pop- ularity did not start again until three years after their two leading competitors had begun to soar. ]'his change came with the quiet but positive and credible promotion of the "light smoke" theme, which is still continuing, strengthened by the auctioneers' testinmnials. And dur- ing these years of sales im'rease, the general tendency of Luekies' expenditure has been downward. Now, before taking tbe final sleps toward a coneht. si,,n, ",*re need to hmk at advertising expenditures and the relative sales positions of the three brands. Study of Chart [ shm~s that only in 193t and 1936 were all three brands t>lated with respect to thee two elements. In 1931, Lucky held position No. 1 in both expenditure and sales; Camel stood No. 2; and Chester- field was No. 3. In 1936. Camel was No. 1, Chesterfield No. 2. Lucky No. k. 1933. Chesterfield was second in both positions. In 1930, '31 and '35, Lucky stood first. iirst, and third, respeetivd'.. In no other year was there any position agreement, even allowing {or a reasonable time-lag. Our final answer comes '.~hen we compare the uurnber and character of the appeals, and the approaches to, each appeal, used by the three brands, with their sales posi- tion. Taking the sales positions at the end ,,f 1937-- 1. Cam,,1, 2. Lucky, 3. Chesterfield--and using the adver. tising of late 1937 and early 1938 for analysis, we find the following: The number of major appeals used by the Big Three in that period totaled seven: health, taste, popularity, emulation, distinction, qualit.v, pleasure. Of these. Camel was using all and adding a minor one (adventure); Lucky was using three (heahh. emula- tion, quality); Chesterfield was using three (Quality, pleasure, taste). The score of approaches to appeals (methods of ex- pressing them or translating them into reader-terms) was as follows: [39] :i:)ii! i f-11";~0"I0350~ 't4-
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CAMEL LUCKY STRIKE CHESTERFIELD H,'alth ~4~ H~.alth ~2+ Lift l.ight ~m,&e ~gre,. Protect throat l%fresh \el ~¢... J:mulali,m {.3 ! l-]n:u]ali,m t [ J ~t ~c h'Q,' ~c teen itar~ Sports [lestatirants (' a y (2~ Qnalit~ (2J Qualty I1} ([re.tiler C,41ier Finest i n ;z r ~'+ (.towers ~ucti,,neers dient~ I'l,'a-ure t 1 t Plea.,nr,+ i2 ) Likable Satb4y [+,ers enjoy l'a-te Ill Taste (.It I ),.[i,'at,. \lihl Fine ta-te .~ r+ +nl a I)iqincti.n I 1 Society P,,pularity (1 } l_arge,t ~elling ~td~enture !1 i Experiences of u-ers This tabulation helps to visualize the advertising pic- ture as nothing else eatx quite do. When we consider that the Camel picture has been almost exactly as shown here f,,r nearly five e,m,emitive )ears, during which Camel consistently brought to bear upon the public nut only more appeals, but more approaches to appeals, than either of the other brands, we seem to have the final anst~er to the query. "Is it money or appeal that deter- mines advertising suce~s?'" Further evidence in m~ own rating of Big Three adver- tising supports the conclusion that, where products are similar and highly competitive in character, and their a&ertising expenditures are sufficient to l,ring more ,,we,age. advertising ingenuit) and creatiteness fire the linal detetlnimmts uf ,ales. ~,[,, a,,sessm,'ut .f the a,l~et" rising published for all tlnee brands at the end of I937 dmwed Camel's efl'ecti,,eness as gg per cent, 1..uck~.+'s ~S ...... 79 per cent, and Chesterfietd's as 67 per cent. In the Camel-Lo,'kv batllc, appeal-streugtlts ha'&~ usually heen opposed by weaknesses, l:r,m~ 1928 ',,> [931. Lucky ad',ertising was strong and aggressive; "sweet" theme, "overindulgence" and "future shado~:*+ themes vs. Camel's cnuservati,,e "pleasure" and ?fresh- hess" themes. From 2932 to 1935, I.u,.ky ..sent So{t while Camel armed its advertising with the "nerve~+ "'lift," "wind." and "digestion" appeals. Chesterfield's steady emphasis on "mil,hwss" has tm- douhtedly had much to d+, ~ith its c.nsistcnt sales record against Camel +~hich had the relmtation of beng a "strong cigarette" and did almost n,dhing h, ,'+mnteraet this feeling tnltil a fir'.'. ",ears ag,,. The post-puhlicati,m sur~e~s of tile pa~t I'~e )ears ha'~e usually placed Chesterfield ad~ertislng :o sidera 4y ahel:td of Canml ht "notiug"--tbat is, ¢,bse~:alion and recollee- tiuo by readers; hut behind Camel iu text-readership. In nlher words. ~hile the nmre complicated Camel tech- nique has seemed to catch s,,mm~hat less passing atten- tinn, it has insured re.re widespread and intensive readi ing of the message b.v thuse whom it "stopped," and has apparently done a more thorough selling job. 1 have said nothing here about media. Adverlislng opinion w,uld probably support the theory that Camel's use nf comics has been a strong sales weapon in and of itself; and that Lucky's use of radio made a definite contribution to its earl'," dominance and its recent re- vival. The media question is not, however, a basic one; The printary function of a mediunt is to convey the advertiser's message. Some media are uselul to insure a broad, mass audience: others help to direct the tv,~ sage to special groups. But during a given eamF, aign~ every medium usually carries the same appeal-messagei Therefore, when mas~, coverage has been obtained, message arid the appeal rather than the medium must be credited ,)r debited ~ith the final resuhs. tq 1" :401 O3 504. 15
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Lucky Strike Sales Reach New Peak by Dramatizing Basic Advantages Are too many of us eternally reaching for "something brand new" in sales appeal--when we might accomplish more by the simple process of educating and re-educating the public on the fundamental appeals inherent itt our product? BY LAWRENCE 3I. HUGHES now put down $t,3o0,000,000 ot mote annually for cigarettes at retail (tax included) is because advertising has helped to bring the price of cig- arettes within reach of so man}, of them Another is that advertising, stimulating mass produ--qion and dis- ttib~ion, has helped to provide the funds and the incentive for mote prod- uct improvement. But the advertising it.ll has been ~oncerned nor with bright (and transl. tory) ideas and phoney claims bat on the ancient, basic re,*sons why this ot that .product rn~.kt:s a p~e:~ant smoke Consider rbe ~d~an!~gc~ of L.~ky Strike. tobai:¢o as the Patterson com- pany listed them Is years ago. Reason No. t: "It is pure tobacco, coor~tining the leas~. po.sible quantity of sweetening and flavoring." Obviously, pate tobacco is some. thing which the mass of ~mokers have always wanted It i~ ~mething which lot of tobacco products have long talked about. Specifically, when American Cig- arette & Cigar Co. an American To. bacco atSliate, reintrodaced the Pall .Mail ¢igat¢3c. scselal y~,trs ago, Pat- I I
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THE 7 +'-+ STREET :rOURNAT,. Three Cigarette Brands Show Gain Greater Than Industry Avera~ze FRIDAY. .... 2]:+::
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,-=2" .~ _• ~ ~! ..... - "r"T =--~:.,.~ _ ~_.,:~_ . ~,'~~" .~_~=;- " ' " 7-" "=,.'2:~2.:,2 , - • F'~T~ - :71 ~ ~_-'~>~:~~=~ , ' .... • ..... :~, _- ~ "~ " = -'~ = • -'~';, ~f~;._~,~e~:. ~_•-~ .E'~7-W <~-~="~ - ~=- - -~_7 _ _ _ L =~=± ..... ~!~ .............. ~J.~T- y°-" • • ~2-; ~ _~= - ~'x'~ " ~=~ ..... ;-- " ] "- ~" J ~,i l i• :' "~I!I!!!!! r , ~" ..... • " . ~ -- - ~-- ,~- ~,'~'~ •s ,: : ~ • -~-~=~ ~ - J= ~2' ~ '~i~" ~ • , - .... ~'I~.i~, !; : 7 ~ :L ]: - ••_- --- ~ v -- / ~: = ........ ~:;!~!!i- > - - • ~ • ~-~.u: .... - . .... =~:~c:° ":~'." -,",..- "~,=~ ........ =~ ! crealte In price of lel~ tobacct L~ 1t40 Will he st leUt p~rtb, olTact ly the lower plies of 1939 Lower Costs Higher Profits .... te..,,..t,.. The problem Of ~lutatmn of clglrett~ • "~" • ~P came eve~ mor~ acut~ m • &dtlpted taxe!L A~ the end nf 1939 ~'6 ~atos .... ......... Indicated for Tobacco Firms ...... dd ..... . .............. ~@-L= .~.-:: .~ " I~vy of ~ c~nts ~ p~kage +l'axes ranged from ~-~-".: '- ~- ~ cent~ to ,5 cont~ a package~ '_-~=~7 ............ • The m~st notable additu,ns during toe year, • 7:~i:']-'Suecess el:American Cigarette's w,~ .................................................................. ..h ...... ~ement was *nleeted Into tie race 1or vmzme, states on the [,'st, m~re hart htLIf of" the tot~ For years, em~£uet~on wm~ almost ~/Lirely on population of the cnun'ry paid ~ta~e taxes on ~"-"~,i Pall Malt Poses New Prob- t ..... d =,l,-.;.a,.-,g: th-. th, ~0 ....... g._ their c~garoIt. ]= ~ .........~ C,t, the,. ~= the PM] 51111 ~ ;4aret~e offer~ the new argument th~ total impost on elgaretles m that city rune ~ lain for Illdtlstl'v reUe brought l,uce ate the picture ~nd nowi a on, c~nl ~ l,acV:~g~ mmnclpal levy, nlak~Rg of s~ze. cent, a package " COM Outh)oh ill' 1940 Thls created a prubiem f~r 111e prod,~er~ o', ~- " 1939 Output at New High T~ ....... [pi,'uretnrclgnret: ........ laeL ....... the "$685" tL ..... garett ..... hleh alinun lh' for 1940 :s fal y cleat" and even at this early'State taxes have *old generally ~t 13 cent~ a ~i~2- _ date. ~L t~ p,o~.ble tn hazard toe guess a~ toi pac~ge. Inchlded ~n tm* division are most of ~ co~t Lrends in 1941 the mentno~ated clgarette~. Pall Mal, PIH~p BV F B D£ZENImRF T~e euecess of iobateo crop restriction ul MorrLt, Raleigh and olner~, Addition of tile If me c~garet~e industry were a static hUSl. t938 re~ulted :c comparatively high pmee~ tar tax put them at a detimte prHe dtsst vamagc nea~. the outlook for the industry for 1940 would that year'~ prc, quctlon, even though thos~ price~ In competition wxth the leadmg hr~tnds, gild be e~.sy to dMIneate becaugo the low paces at did represent ~I1~1~ slight dechne~ from the pre- price adJustment~ were f~lnd net-canary in 1 o~e which the industry s prulaipal la~, material sold wou~ year'~ ou.~tat[un5 , stir[el to retam their bu~,ness _i : m 1999 clearly foleshadc~s a redu~Non m cwt8 With ~hc ,,,,r~ Llvorabie prtce~, farmers Los1 ye~.r ret0rdcd ~ father new high Col "" '- " - 0Jld all increase in pruO~s in 1919 became restive, tlncter restriction and voted it v~garette, proollct:oll n one ~ear F~nal d t~re ~+" "" - However the h~lslnc~s t~ not sis:it and flr~w, h,arh' u 19~9 It became evment that ate net yet avallab:e but ;.be tots r)rOdllgetion ~' wrue the forecast of grea:er prohts thl~ year ~-~2 _ - - caa he made. it Is somewhat more dtmcult to ~='~ t0reca~t wh~ wil~ earn these prints. ~ ~1uct this same condition prevailed at the sta~: L,f 1939 Carmed over from 1938 was a ehcht :e ulction ~n ~he edit of leaf tt~bacco off- setn~g ~ms was an mcrea~e Jn diner expends • -. ~:ch sugges~ea thai pl'oflt~ for the mdustry as a whole ~ould show hl~le <hange in the ag- k~ "¸ . • ¸~grcgate from those rean~a In 1938. "~--L--].I Ma3or cigarette manala~turers are ILmOng Lne first ~o report earnmg~ for the preceding yea:', and st~tement~ f,~r 1939 are hkely to show ~ulv modes; changen from the results far 193g There were changes m he d~v~lun ot the totaI .. c~galett~ ou~mess which ~l~l o~ re~puns~bt~ !,,r ~£ • " ~. moat of the deviation from the general proht _% . treml of the mdustry : " m Lie dl~trlbltlOn of elgarett~ buS~ness tl III9 i!! [1t IOCltg~ In Orilll oiler ~l~n tie t]lrel "~ • - lll~]lrs C~met o~ R, d Reynolds Lllcky Stl;kl _" '! o~ American TII~I<cl. alld (2hcStellelI OI Lig- _ ii[ get ~: Mverl ToIIt'c~ This trend might well hi triced+hick to 1931 when the lO ltn[fli'" 2: IrM tilt into the total Recounted ~or ty the [qree eli ]elder~ R~cent ('ompetltlve Tre.d~ dIcade ago, it ~'ts in%ther generally &c- knowleQgll [llt ~oll [hrtt le&ders p]ul P. =-- LorIlard CO. with its lid (}thl cigarette ~C- L--E counted fli mlrl t/tAn 91', if al the cigaI'e~ll~l "r 11' .[ :~ gold m tie coLtn~r} The Di]lltCe went to ~" -I Tlrklsh clg~rettel Eli O[IIr tlgler price/ "i • r: " h4"ands which ICCOiI['*t~ eli • ~II' lllHldred tbi. would iead :a a mUCh larger crop than In ,will Fun over 170 bltiioa ~'mcv compares wtl.~ the previou~ summer, the pl'~Vlmls high mark uf 193,6~8508.315 m When marh~tmg ~lf the new growth began 193~ and l@2f125,51h,163 cigarettes n t37, An th~ .gnr of the larger c:,~p w~ felt almmlt atl t~me mgh ~or one month'~ outpu of cgar- mm iI I ~ ~ o eat pped below e ~et I Au~r h tl 1 , at, y ~ h ~ ,, ce~ r re e s was :•ust th$.en I le n airy lhe~e ~t *h~ p:evlous year This situation wag urned nut 6 571 041 937.. oo b month on ~gNlavntef~ ~v ,he ciomng o toe nlarKe • when recnrU Ic exceed 16 OllnOn AS an In{llcatlon the c)utbleag'of the European ~ar cau.ed the or ~, growth of tixe Industry i11 latent 3e~ls wtLhdrawal ~f 1he Brltiah leaf buyers, I~venlU* the production m AUgLL~L 1939 ex, ceded that ally the margets were reopened when arrange- for any fUll c~lendar year prior to 191~ meats nac nee. concllldet to buy up &iSd Mid Production of [o~acco 111 o:ner form~ ranged for thn British ha~ pol'tton of the crop whteAa from modest changes in smnkmg anti caewmg they wnu~d normally take, However. u the tobacco lo. [all]~ suostantlal gain I c~g~rs. alarkezs nested their close• the price of flue* In the clg;~l mdtls:ey there was no abatcnz~m cured tobacco !~veraged col3 about -, :eats a ~f tde ;'erl.] [owavd coneemratlon of ~he oasl- pound ~galnst i':' 1 rents a potlnd In Iq39. Bur iles~ in tie ~heapest division In 1939 ~t ~pp~[~ lay tobacco ins!Rots opened early n December that cigars selling for 5 cents each or less ac- 8mailer ('rnp Higher Pricer counted for nearly 90% of all cigars made an ........... . ................. ~0h g.,.~--...,.g.,. ~.. ,_.~,..o, ahoot tL,,; ....... [1113 11o!i [t}]ltCCi bit [(>t'EF prlcel, flllll~ o ii) b~l flocked blck [r the i/elier of crop F~I~rlCLIOl Ch~rlglng hib~t, in tOtI/CI ~.~,ni ~tlptton tinct !It/tIlll"il 01 UtfU']C[lOl for 1~ 1939 tlk lltvy It, l] l!om 11l tllIE ,iI(l.ll['t ,ii crop wag fol[ov.-ed by & big crop aid lowel c]galett~ cOIIUmotI~n expinLled timoit Yule. prices, res;lmpll(;l of COltrl] of the tlzm of t~l ll[lttly. As a Inatttr ef tact the peak vear ta1- clp would appe-ar [o tl'omlll i i11t11~1 ~rowl cJglr production till i920, l~te~ Wh,ch the in- lllh It.gher prltcl, dUetr~, fell off steadily nnld hy 1933 the [GiRt The elect of Biicl • cn~llge Is riot lIKlJ~ ~o %TOIUm@ ~Or the inlus[ry I'KI Only ~ ILL[IS ~OVI ilO~ tlI ,oy i]]cl~ of ]t40. The ~nflfleHC! i~ fhRn h~]f the 8.097 dO0,000 cigar~ mKdI 1t 192b. 1939 prh'es, lott%.lf ~.l]l i telt qu~ie tti,on~Iy Repe~l of the prohJbitiotl tmen(imtl][ iO~.lver In II410 Ilanula-'urlnI costs, and an£ incrlle wikl h&J]ed all tle Gawn of & n#~ er& for (.illlr ~1 lllf tOllCl=3 3FICII IE the fall of t94b will talker& I~OW up ii tli i 14] figdlel ~Fom le G! I)OH]I Of 1933 It, Iq3! IC]"! L~af [ubacctl costl repl'esen~ rougl]y, II ~RS an bllres.se of tleallV 201= in clllr piiuc. Ityerale >f tobll¢co DI'lcos of the tl~'e~ p~T'celilg [l°n' with tht pO~lbi]ltb flat 1939 will reach y~arl "'herPf)rl" :h! deci{le In ulsts fop 1940, tle nlghest ]eve] Mnce 193o .......... = ,;II,IIIiN)."/~ = :E~IN~=~.": , c, ?,!~I!N- ]::IIA b]T :40 l 03 504. '1 8
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Tobacco Industry Provides One of~ Sources of Income ; ..... • ... to tile high-tax cigarettes ~rom the tower-tax t~e native forels~ ~moking or ehe~dng tobacco, In 1~39 the r~ve-~ ~,r third year it wilt have adopted all or the ! hue ft~m clgsrettes ~lone amounted to tl~ore? ~hy~cal chal'actertstica of th* foreign tobacco, [ ..... • " than $500,000.000, because the years "igarette such a~ size of leaf and color. Thus TtlrRi£]l, l Auctioning Tobacco :7 ": 7r~ ,/. ~~ T ,.~ 0 1 03EO~ 1 9
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,acco Industry Provides One of Auctioning Tobacco A Tobacco Field ,/. R]+,,~O 1 0350420
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March tl 1940 BAI~ON~S ,,-; 0 I 0 3 504L 2 1
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:%iiiiiiiii~L/ ~ :i-:: Octot, c~ "I. 1940 Z'~I" + BA RR ON'S, The National Financial l'V~klu Growing Success of the "Long" Ciga+ latest Innovation Now Accounts for 5% of Total Vohme--blalf Dozen Con fgT,'KOl 0350~22
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t3ARRON'S, The National Financial H;eekly Page Nine Growing Success of the "" " Long Cigarette ,novation Now Accounts For 5% of Total Volume--Half Dozen Companies Enter Fieid 8y HARRY M. WOOl-fEN limited. Other producers, eager to il~ the new field, fou.~ to their general dismay that Ameri~Tobacco's previntm ottlte would fully enl~ge the American ~ & Foundry engineer. ing staff for several months. Other order~ from SlZmller eomp~nles with more mod~ rt~quirelllent~ were filled sub~quently, mad within the eurrtsl~ year nearly a dozen brands have horn broullht out or. the marital. Inability to get into immediate produetlon on th~ eig~retbm last year, however, is held re~pormihle for the delay in on~ ~. more of American TobaccCs direct competitors entering the field. What the Other Btg Comlmnies May Do Manllfac~rers in as highly a competitive genre as th~ ] elgtu~tte btmine~ nalurslly are not making public their plan~, but th~ ~ly e0atry of both Liggett & Myers Tobacco Co- and P t Lodllard Co., with one or more brands in the new raze, ] occasion little snrpri.~' in the trade. ]t is felt f~at tbe fsrltm~ ] manuftleturer will likely use its popular ~-ealled mmeoIttl~ i brslad, "Fatima", for its entry into the 85.millim~ msxlmt. i while I.orillard miglat actuall~ elect to stake its **mare ehn~'~ i on the future of this business hv laurlcbing *'Old Gold" int~ th~ ] new field. Vqllh its one cigarette- the popuiar Camet--n~aw On ~ market, t{. J. Reynolds Tobacco Co. may well hc~itete, for th~ time being, in the development of a new brand in order to invad~ the new field nf emz~petitb/n. Certainly, the management wott~ t~e unlikely Io perft~rm a conversion job On "C~mel", rm~ ttnjoy~ lag ~uch ~nl istae~orv vohxme. In addbim~ to PM1 .Mull, hy far the largest coning brttm:l il~ the 85-millimeter class, the American Tobacco Co. hoe also had another stake in this field sdlce last spring in tbe '~Herl~a-t Tart.vton" brand. These two cigarette~ are gxpected to reach combined product ion this year of aroui~ 6,5~0,00(I,000, oampared with an estimated ¢)ulp~lt t)f only a.tgD.t~0.000 in the standar~ gize last veer. Alnt)ng other manul~tt:turers no'~ proclu~qg tl~ long ciga'relte in Ihe .rder (,f their importance are: Bro~-n & WiIiiams~m Tohaec. Co.. ,~ith il~ "Wing" cigarette; PhKip : manufacturer in order to insure a uniform retail price with the larger selling brands, which have ~ wholesale price of only $863 per thousand. At. le~t one nl the new style cigarettes, "Core', i carries the same list price ~s ~h*, maj.r ~lling brands, while i "Wings" originalt3 a 10-een~ ('igarett,% sells at only $5.30 P~ri i thonsand wholesale. This makers t:~ible the ~de of the new ] I g s ze "Wring'' at only I l cent-~ i:x:r wu:k hi n(m-/axtM cigarette ] steteu, i The 85*millimeter brands tb~t a~ advertising a smoke as ths '*difference to sell", roll rm* thorn 1.050 to 1,0fl~ I } cigaretttns to three pounds ot tohm:c., while the 7fl millimett~ I size turns out about 1 350 cigaruI*~ fr~m~ ihe ~rne quantity (ff [ ear While wrinu-~ ~limal~ art, in circulation ~s In the differ- i ence in the ecmt of plx~ducing thp ne~ cigarette ! the standard brands, the 85-millimeter "smoke" is add about 35 eent-~ per thtmsand to i compared wilh It,- "regular" t ig~rvtle di~i~i(,us 03504.23
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Investing in Industrial Leadership history, 14 eompanie~ were set up to take over the i di~dded hn~ine~ nf the old American Tobacco Co, [ .qince that time, three of the c+)mp,~uit~ have gone on to a~'~:umeI" a hl~slne~ ~alure exceeding hy wide margins anything which] the oM tr~t h~d ac('ompLiahed, I (tn~ cf these comI~ni~ is American Toheceo Co., whc~aI mar i~ iu ihe ascendancy again after having been su~ for[ ~evcra[ years hv one of its two mak)r competitors, The husiness of the old company was reshuffled in such a way thor inten~ c'ompelition developed between the various new y established companie~ to increa~ tile r share of bud nesa i!l the (iit!~rent tlivisions nf Ihe indu.~try. The rex:oral of American + T~bacco, (4 R. J. RevrloMs Tohareo (!o. and of IAggett & Mvors ! 'l•~+b~cco t'u. ~ rlotahle in that each recognized the cnnsulnerK tendency Io shift to cigarettes at the expense ot¸ other t,}ha('eo { q-s I IE I d t i k't S'I'R IkE ~IGAII E'I°I'E of .4 rnerican ']'ohacru i~ rumdng neck and neck wilh Ciilllmt fi+¢ h'adit+~ f-~;lio+~ ~rzton~ p*+lmlar Ir~andm. P~fit l~+lrgi+l hits dropll+Pd sharlply mince the early '31~_+ due Io higher leaf tobleeo prlee~ and to greatI) itterellsed t~xati~In, Higher tnhaeco peieea am! hwreased sale~ ha+e made larger ln~enl.ri,~ i+rces~ary, with the result that the r.mpany al Ihc +'.d of 19:19 had notes payable .f ~*~,3,792~lggh The company has no pre~eut Idan~ for tiuancing these imnk h)an~, I'ifi- i~ the Mxl h in a series of .rt icle~ disl,.~Mng companie~ in u hirh the pl*hli(' ha~ u [tlr~r in~est- l~lent il~tt'rr~t. ~. ~ere was an oty~,~rtt+mtv wBlch dl~'n+ v~rioble factor ul b~w.c~t tohw¢o, and~ W~ tuni~v for aKK~s ¥c promote,mat effort~. ~y shnwing a ~ti~+ !ory rate o! g.ruwth, lI~ ~tl~ money on it The progrei~ made by P;tIi Mall cigarl~ttt~ *tandF~int may I~ dilt~cult to meaaur~ IJee~ut the Amerielrl Cigarette & Cigar t~O+ in reid Tobacco Co. +'%me y~m ago ~llel'icall 'Fld),~cc0 ~ ct~nslderable amount of I lw s~.,-k of ArtleTit~l~ to purchase the holdiugs ol other st~ck~ld company. In this '~a) Amelwan 'l'o~,O ( ~0~+ Of tb(' t Olnrn~n arid prolerre<t shat~ o1~" I In 1932 Amt~rit :K: '['~A~a~, <~ (;n. r~rd.IN] v~ !of Anlerican Cillar (!n !.c St S()0,Ct00 al~tt~g products, t la er 'o npanv 200 1)(},~ ¢'+)rln}~rlN arid CNlm~i~O~- ..... ~ , }r~}perties ofthat COIIll;~IHX ,\h,~,, F. ~*nt !,~* ~+ ll~t~II [ll~,S~ tllr~t~ c(lm I~illl~S Ihey S~=~lJr~Kl an incr~a$1ngi'+, ih n tap ttu ( ~1n "~ r New Competition sittce IgJO ; rge she re ol Ihis grow ng sine~ Wh e at t mritat ve dat~l s ~ t ~e o+ vr.m ~gare~+te ~ ( g: }~ilt:k[~lg i]/e right horse, each of these three COlnpanies are LatKlllg, IIV 1.~29 t wa~ be eve++ 1 tie traae tml [iH,sP Itemal re<eived b~ Am,'d*au t+'igat~t~ ~ .... outstripp~t all c!m~petition for over 21) years• Within tile ~asl companies accmmted lot more than 90~i~ of all of Ihe cigarette i ar I r i * .... g (l lr)n ~t acto pro'~t£I~ Aecade new " m~ t on has deve nnod f r the hree 'eader~ buml!~ I ~t ~ ' t h ee n i r hrands n the fie d "I .' ~ < ' ~ a ~ ~ ~ t . n~,r~ - r • ely Ame'c' as seen " n eet the'+ g" c gore e eke+s, .~; r ke t I ~r ~ lie rt-~n orse ra~e oft , a d bed first at,e n ~ hIIIF¢ll ~° 1~111 °lrelmr pr+ all ElM] cl~nr+~tre a!l~I ~t~l ~j¢I~ x s~ f t mHi.n d~l~. tile iat~t chaJiel gers with a competitive hrand, even Ih)ugh co e~ i) 'u ~ c o lnore th~ i one occasion• In the ear v 't0s .... thin competition is still ~mati in (. nl~+ rs ~ ++'it a he hug torn t s r e A neri'a~ accot ted fir between 40": and ~ne renta~pa,,n, lo,.~merttan + at-el, • , o i k _ 11 .. • , . ._ f. o t2~ 8ii a • l)lVlllend~ h ~(, lit+ pa i Ill of business enjoyed by I. t, ky Strike cigarette Amerlcan'~ ~l(lr , i}f all clgaltltt*s ~Jl(l with its vOlnlne in the ne~gnoornc+oa (i " " " '; l, Vhelt tile tot:~cc( trt t "a d "" ~ed A n r'la T [ A a ' ~ ' " American Tobacco aad paltl ulatlv +> a,r xv(m m .+ n~ c ' g g ~¢ + m x~.~ lss++ . . t ell + n+.l+~o] I " 'o i+a~ll i~ o . , c ,~ fnrmnfdi~i t ts rP{'Pi+t>d ~]+~ tSO~ oP ~h+ to~a] cigarette htlm{llO~ n th+~ el>unit+, s" co ;e rg+, i,+ Flit, president of the company, llm~tlm(+(t that t' • 40.53r ~. el the Smoking tnhacco htt+inem~, ~.9~ oF [be p[tl~ [ ~+l]i+'t+ tu ]cl~!~, }tpts heetl Ihe vigor t)[ it++ advertising po]ic~'. 2~gg[-m~ + t++b:u'co ht:~Ibte~m 8rid 1:~ ,If', el ~he little ~ig+tr husiues+ The ] m,v. +,+ +hi' poi.+ ~l:at has ell occa+io/i ~rottP+@d tlptloslti+)n ¢+f + The (/i~+:r FJi;:i+~+m+ rid trtlst hrld held ~ 7),, td the ~t~tlf+ btlsine++; 91 4r ~ r,+ the i ~ttm' "v • gtOllp+, Alnetlc~ln 'I'+,I.tcC<I has ilevertlltde~s ,~.+:uredi Anleri~rln "l',+h:~<,~, (% ~.. ,,,,,-t:,led the c~+ thai hlghly desir tble end ~>i ha~ing people talk about itm I.th-kV t it took uvc.r fHJm dir<+~t .'.,.e++hip by Amet~ ................................... Strike Fret, tcdax. +okt,s ure nlttde +tbout the "chant of th'e ] did not, bov,'~,~er lake l+~,t•+ :he ci£ar bl~]~+ "hS+ltLE I ANNUAL PF'I~. CAPIFA CtINStrMpI'IIIN tobacco au(tionm,r"'~ ;~ di~iPlguishh~g feature of the cou~pany's i compan~ had (+mdu(ted iudire~N~ tbr",-'Llt~ ~ "f,;, :97 :IH4; I¸25¸,9 ~u 7 971 ......... 6ml ........ IH! ........ HS ........ 252 ;:; ...... 139 ( i,2 i~ Mtgtt.t oh. Snuff .> 2111 .~t~ 2 4 .US :is :+'.I .2u :~ I 2.4 .29 29 ~r; ~]i) .34 3 .:~ .33 62 :+ J1 .32 77 :~t; ,32 ~<, + + .:++ +m + 2 "~' 79 4 .:H 7:', 4.2 .H radio .dverii~i+m Hie Creme and t{oi Tan busi+aess iii ~t+e iow--p "It Pa} ~" to Adrertise" p ....................... ~-- tobacto t:t)mp:~ni~.s t+)~l]ti he obtained, they wotlld probab v ..... II {'¢>mp[eLe t]il~3 oil atlverli~ln~ expenditures by tile var ts . t IN[N( "~ t~1't II) % ~ s.N PRI show titaL libs :t~:gr+,~h,e nlel~ handising pohcv ,)f the company i i ha~ emd,Lvd h b, shaw a l'imng trend in it~ businetm with a lowt~ Y~r (.',,-- ".- +~r~~1 advertising expei~se per dollar ,d s~le.~ than that of its princlplt t~9 ...... 821,2+¢t1,+:++,tI .~2+,+~27,u31 ~',l~ ~ cotnp~titors~ 'lhis has uot always been the (:a~ fir slarlm 1931~ ..... 2",:l,0t+a•'222 ?3,$35d, t+ 1.1111 3 .... 937 ' ' ( ; ' ~ - l'~ '1 ' cv rta me it n ws )+" adver s ng o ne ye ra g was felt- ~36 ....... ~'~ ~ • - ' " ...... P • 22' • q 2t, n . ~21 7i,~2 Iowc4t bv Iosk~ by l,ut kv SIrtke ot hrst position lt~ tht~ c~garett~ ] 19:k~ ...... ,.,,t a~aiL 2112;g2.i~I~ t.~'2 race. I 19~ ...... Iitit ii~aH. 21 -oil 1,2111J I.]~i Yielding iil+Sl and )q~ib[v *+v~+n ~:and plata its n re.suit of] ]~k~ ...... ,~,,t asaJL I7 10i,201t :i-tN! ; " . ~ r ++,~ 116 ash+~rpdechnem~ ~s~ esw - ~g~: ~ 1932 Aner an~b - ~*, ............... ..........~ J.,~L ...... II,)l asaH• it~•Igg•7 II <21.~7 + ized the s}h.s of Lie:ks ~h'ike ill 1.~:1;I arid hi the past few }'ears ! 1930 ...... .+,1 :,,all. t+++',++.?+++ It.mS ~+ ha+ made a ver~ good l-eCovt+l,y. SfeadiIy it has mo+ed npward 192<~ ...... .,.i ~,,~+;1. :re+IT+trier :;.7~" +: unN[ now, it it ;,+ t+ot +qHvld of (Yalpel it t~ rlmndlg ?lPck itLld neck "/idJ.~t(-(} Inr hi+sir'lit ++lit m+]tiL i+~ Nci+t~++ll}M+ wdh t[I:tt brand The t ~lt'l'(+l~ i+lit+ o+ sat+++ is probably rigIit, around I+,,000,{)ll[i,000, or pqua[ h+t}l~+he+~{ votk+lll+ o[ earlier years , CkI't1M.tZ~Ilt+'4 t¢l}r AllRPtit;+n "Fni)a~cn. ~m i}}l' lnomt consumer m,..Is pro+ i ~7,+,++~,.+m+l,:,,,I,-,l.h4,~ >;2.+,*+'P.?~ q,'?£ +mu. phl. t ~14.1 plr) ducers, vohJnle s ~!s t[~+-blood+ Yet. paradoxically', its I,++ I 2.y6z+a22 +h:,r,,. ,.,.nun+;+ It (+m~ !+ J.57'+.257 .h:,r+,. <-.*mm,,n <m25 +mr earnings and lt,t l}ttr industry, too) ~%*PF+ reported ill tht' \'ears ! (~ommol, arid el:,.. }i .t+;,r+ :++, +likr , ~, ,,pc a+ i I x+}+ell ~;+lunm ~m+ dl,++r+':~+cd This (;i)tltfJi+4)pi t:+tn++ abner I++ l!1~k!, +nd was tile reml[t of .............. ........ / a cnmhinniinn .I hijdl pli~,~ ha" finished goads and low prices higher-pricpd th,id +~ ~1A; ~.i~wd ,,~ b2 a mttbPt]l 1911 112 i 9 ........ I; 141"( ............ '+,risl~ Pe,d ........ ir,~. f,u" t h ..... pony came in 1931 at ] Ciga-r~ttt~ & ( 'i"arfn[ ~arlls d, .... I +]~[]rlll{~d $46Ag9.74I, wilh {}l*~ prereding and gucceeding years ollly i g s~ es ur l.tll:k3 Ntriku cigit}~t~J~ fi ~ hm m m r robaceo r in h md funds turin ........ moderately ended that g ~re. T " ' " t+ha p con[rast tu I'e ~ p " q " "' ." cg re.tat y~ little cigar busine~; 86.1e,~ of all cigarettes; 8,t.9¢~, of plug; ] 1933 pl~ltit of oldv $17.401,'2<78. and the $26,427.!t34 reporled funds to finance the expanded bt:sinesa havehtt i I~,r 19391 + ] able howevcr and such need in ~ [,~a dv a ~elt~fl t'i~ar7!;'7+ 'btl~tnt,:~sc+[ fine t:Lltl 76.2~ of ~trlokil+~g tobacco and 14.4r~ of" tile At. its wurst, the depression tonk away only a little more American Tnbacv(~ ~sl~ d+~h:g a big bumi~ The l,qM (igarette bu~ine~ ~q" the ((,unit; in 1910 was then 1U'; of the tni:d cigaretl+u ]ltls~n:,~ o[ the company and 193t~, but lo~+ i.(]l)~t:c:t~ ~ri~*,s ].,'l+t the do~|ar 8,6tt.:~35Arl7 small cigarettes• ~+, lilat American's share since Ameri~:m I'ohac:~ (with l~ull 1)urham5 h.d the "roll- tobacco itlvellf~)rie~ d¢~wn t~ ii~'e compara~iv+ amounted !o 2.865,607,187 annuaH}. With the t+>tal smoking ] ytmr-own" tob:~,~ which wa~tmntiy aubgtituted ~+r ready- $98,137.109 at the end of ]9i11. ~shen the t'o~ t(~bac('o busine~ thell amounting to 2t4,056c102 pounds anne- ! made cigarottem, this wag not ~ete loss, 061. of cash and $64.(Xi3,692 el sto<:k~ altd l}y fbe and of 19:i2. however• the revOt-w+t] all,.+ American ~ share ",VSLe~ ~,757,059 pouild~ hi 1910 tobacco manufacturers of the reunify product~t 174:152•625 pounds of The Advet t of the Tel -Cot ter.v had started, ]nvenlnry r,~ to $114.137.~ h plug tobacco, el which Amerie~l ~as ~llolled brands accounting year, and iL has ]'ise~l since :ltnl~L wit]~l ........ %r .it! 0(;6 ":t:l I)~unld~ I But teat tobacco prices during ihe same >cried shmved much i $15[,755,3~(1 at he e d .f ~ 1,5~] :t ~] + ~XI~N Smokin~ +rod ptug tobacco were hy tar the most imporlant mor. ~xtreme d.rlil~es, wifich gre:dIv widened the prnfit margins CO{t,(J(10 Wilh r(+gular dividend:+ ma~txt:.~t~ parts of the business obtained by American, and it might have ot" the cigarette makers• Then, in 1932. the price ol cigarett~ i yeal~, des ~ite the ]act 11]11[ emllhlgl.I f~[i I~ bt, en naturM ior the company to look to lho~ fields for the future wa~ advan~d 4g cent.~ a thousand to ~6.85 a thousand, with 1he un several occasions, the need I.r hmda ~ ~ expansion o[ Os busineS+r id~, a~ one e~mpnny explained, of permitting the companies+ to [ liquidation of markriabie securities and ~i~ gv !916, however, it was apparent Lhat cigarettes would pay the tobacco grower more for his product. [ note borrowing to the extmlt of g,1;t 792 h ~them tr~d rowhm lefnttre ~rthevoumemthat Tea~ o~ ~o~ ~er r x~ anost ~asrnt [he~ar A r (iivi~inn had trebled in the intervening year+, t efte Slnoker. pint:hod in Ih., pocket, had sought cheaper mati~ I II+est. httzlk h+an~ 'l'h,,+r ,'('dip +ion cou~ Plug toL;~i++ hu+im.s~ now stands at. |es.s thai', one-third the I fact]un+ Luw jprices for leaf tobacco permitted introdm,t [cm of several metbnds, I )no w~n:M !r,~ ihr;nlgh a tug 1910 leveh Twist t,,hacco has also lost nearly two-thirds of' the new brands retailing at ]11 cents a package, against file 115 cent ] which would onl+ take 1,In,-++ ti .<flume d~+ 19pt +¢olun~e. atld lille eut has shnwn a similar~ re(:e~.sion. Snmk- retailpric:+ihrthMeadinghrands. Amaresult.tbe 10-center hrands + now in t i+e alher dirtwtSm A s~cond Wm~ ~+H ++ lug tobacco volume now is one,' about 10% less than it wa+~ in mtmhrrmmed up In 1933. Arnerlcan. wnh of, her companies, [ lion in the am,rant invost,~d in invento~i 1910. and snuffvohlme is actu:dlv greater, the record production did penance with a price cut, permitting leading hrand~ to relail ! them a! Nwh' re.sere phvsi+ :ll level. far that product having heen reaclu~d in I928• Meanwhile. ] at the altractiv. It) ('~nt le~et• Subsequent correction to more only if the price ~1 lea ' tnba 'co m veal cigarette producdnn expanded so constandv that the 1940 pro- ! profitable prk'+~ ,w~s slow i A third aiternati~e 1•~ to liquida~+e d+Jction wiIt be 211 tittles what it wag in LgU), ' Sim'e li~at time. lel/l tohacco prices ha~e been much higher, which wc}ttId require a markpd Hicre:t+m~ ~++l,m~ nnd have fluctuated mu,'h le~s widely But contimwd prel~nce nf earnings to make a sizable dent in American T(Jbtlcco PIcked thP Prodl:ct of tile 10-centel'~. as ~eil as htcreasc~d t:~mpetitlon from newer f~comea apparent~ ot cotm~k that th~ e~l~ brands, h~s permltt~.d ~illce 15t:44 oniv one price advance which lbhed {Jl/ a higher level of t)r~uctil~l~, M+,~t important to American Tl~hmco Co. is the fact that was not dictated hv increased taxes. Thi_~ advance wa~ an short+ternl barrm~ings through equit~ it put its make on tile one dlvisl.n of the business which bern i incream+ of 15 cents per thou~nnd made in 1937. t debt would be entirely b~stifi+'d ttow~v+mq ~ .... m,,re than kept pace with the gr+}a :h in population of the eounLr'¢, ~ Nuch a tremendous market as that prated by the cigarette ] stock wnuid dih+le ~hare e-a ~n ngs un e~ xxr}]i]e a:tLlal mundage produclion of smoking tobacco in [9~10 ' husinv~ ha~ proven a fmr~t¢ field for inwmttive minds; now deas [ to m ~rove t r rxrgin or erca " ; crea~-O tl.+i will lint he much under the 1910 total tile per capita (.onmumptkm in promotion, new ideu in im~.~,.et~ ~ ~ atylem in cigar- ] .... has d~chne~t skeadilv, and Ihis is tr ~e ]~o of snuff and :gars. cites are pPemented to manufmetu+"s~--~qmmmtly. I~Icaume ] Nt'u Ta~es lhrd ot Colt rl'hi~ means, of cotir~• th.t tkc~se dtxisi,)ns are not obtaining t~baccousersshitt thelr preference ~=mmaufact~s~,uti. " " thmr ~hme of new tobacco tl~+,r~ There '.s also the threat of] nize aach idea carefully, zince p~0n of new idena may Currently American T,31n.x',~ is in the a rat~id der!~ne in demand :~s Ihe oilier u~ers disappear from ] involve expenditures of milliotu+. ~. = iemcing a market incre:ise tt~ i~s income t~l¢~ t~le tt~tr kl.1 "rt i i I )~ a)i~ ensure tion of th " I • I t t When the 10-cent cigaretttm ~etzed nearly 25% of all the :. a ~J~ ~ I c I c : p e prlz ctpa n )a¢•~> pr~+duct~ ~,f the industry is sll~wn in Table l, In this table, rigarette busin~ in 1932. leading companies weighed tl~ new. comer in the balance and reached the eonelu,mc~e3~a~, ig n~llntlial'tuFtd tobacco iP+ciudcs smok rig, chew K and plug and. I ;~ ¢lol)l+4,qsion baby and rnuld oaly be ~outi~l~l~_~ .Iow-<~ hke ~nutf, ts r,.corded in pounds: cigarettes and clgar~ are shnwn I rebecca. ;tNth ~hi~ decision in hand. the "Big Tly~e~.~:~ue~l~ in tile number nf individual m~its• no rompetitlve hran(l~, but the challenge wat~ ~'!~ In 1910 the Turkish rigarette busin(ss I lade up tl e b lk, against price. Despite increased leaf price~, 10-centers still of that division of the industry. In 19[:1 and 1914. fleynold~, ! continue a definite but not expanding fa(lor hi the cigarette which had obtained no elgarette husine~ in the di.~olution, intro- market. dured a numher of'brands, including ('alnel. ]'his COlr+l~ted wiiil Within the past two ve, r~ hi)we,vet, anc:ther flew { a e ger ('iae~erfipld ,~f I,iggett & Myers. In 1916 American Tobacco has one+red lhe [i~ts a~ains~ ~hr, k,ader~ 'Ibis is lhe tong cigar- brough! ,-it its Luck,, Strike Iir lnd , elle Amer[t:an 'l'(}]/;It l<) (%, t hruu,N~ i!s subsld[arv, the Ameri Under the influence el the inten~ coulpetit[on prevailing ] ('all (?igarette & {]ig;ir (~o ila~ ht+~n ~tll6uct:t~['tll in ils elT.rts to ~x law tc~ help finance ~h.- ,~t+m~ progv~. course, ('ome~ withon~ nny ~'~mpol~snth+g ~ii~:~i¸ plmy'~+ volume growing dire~tP¢ ++nt of tl~! del some time in tile future ~'xt',J~;,1 hm t~om ex aho~Id be based upon r(~t~ n~l invested C~l~ might he in sn unfavar~hI~ p~i~1o~, since the common is only about. $25 a share excludin marks, etc, valued on the books at. almut $12 a l)e~pite prement adverse tax ingue]t~0, & will prohabiy shuw greater earnings in I,~.lll hut this will b~ ¢tt~0 in part t~ i~ dividend in:S 'l'nbacr,) pahi tu it i)~ Jr•. subskliary, the A~ & Cigar t'm ~l';',Ct'"~. .+ "l 039Od-2~
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g6&c~ of all cigarettes; 849c~ of plug; 52t~ of smoking tobacco and 14.4v~- of the dueers, volume Ls its liI~q/lood Yet. paradoxkatty, its best earnfogs (and tot the industry, too) were reported in the yea~ when volume was depressed¸ Thi~ conddion e~me about ill 19:12. and was the resul~ of a combination r~f high priees for finished goods and low prices for raw materials¸ Peak earnings for the c~mpany came in 1901 at $46.189,741, w/th the preceding and succeeding years only l mederateIy under lhat figure. ThL~ is i. ~berp omtrast to the i !933 profit of only $17,401,208, and the £26,427,924 repnrted ! fbr 1939¸ At it~ woful, the depression took away ~l~l.., a Ihtle more :tte hushua* iff the country in 1910 was ti*an 10rr of file total cigarette husines~ o)" the ,tmlpany, and cigarettes, ~, that American's share!sinee American Tobacco (with Buti t)urhami had the "roll- ;07,187 annually With the total smoking your-own" tobacco which waafr¢,quently sub~tittu~d I~r ready•-¸ n am~unth*g to 2t4,056,402 pom~ds annu- made cigaretles, this was not a ~mplate lo&~. e was ~46,757,059 pound~, In 1910 tebaeco • country produced 17.1,:~52.625 pound~ of 77w .4drent o] the Ten-Centers higher-pritx~d field in still carried on hy a subeidiar Cigarette & Cigar Co Soaring ames Tobacco poor in liquid funds during recent years• The requ~ funds to finance the expanded business have h~en rcadii al)le, however, and such need is clearly a healthy "poverty•" American Tobacco was dom~ s big httsine~q in the 1930~, but low tobacco prices k.pt the th,linr investment ill tobacco inventorit~ down to the comparatively tow $98,137,109 at the end of 19111, when the company 061 of cash and $64,003,692 of stocks and bo~da. By the end of 1932, however, the reversal of the had started. Inventory rose to $114,I37,237 by • h Amerwa,i ~as Mh,tted brands accounting ~g tobacco were hv far the most important obtained by American, arid it might have ompany to look to thot~ fields for the future *ass er. it wan apparent that cigarettes would growth in the future, for the volume in tha~ n the interveinng years. ~ine.-~ now stands at lass than o~m-third the hacco ha~ also lost nearly two-thirds of the e cut has shown a similar ~ion. Stunk- mw is only about 10% le~ than it was hi ne is actually greater, the record production ring been r~al.hed in 1928. Meanwhile, expanded so constantly that the 1940 pro- nes wha~ it was in 1910• Tobacco Picked the Product year. and it has risen since almost ~ithollt interrupt.lon But leaf t{,ba,'co pri{'~ during the sam,. period ~tmw~l much $151.755,380 at the end t,f 1939. a net expansion of over more extreme decliDe~, which greatly widened the profit margins 10{)9,000. With regular dividends maintained throughout of the cigarette makers~ Then, in 1932, the price of cigarett~ ] years, despite the fact that earnings fell short. was advanced 45 cents a thou~nd to $6~85 a thou~md, with the I on several occasions, the n~d for funds in inventory forced idea, as one company ~xplained, of permitting the companies to I liquidation of marketable ~curili~, and ~ l~q pay the tobeccn grower mor~ for his product. [ note borrowing to ihe exient af $43 792,000 at the end of The action, however, proved almost disastrous. ']'he cigar- / American 'l'nhacc~ (h~. has no )resent plarm for financing ette smoker, pinched in the pocket, had sought cheaper satin- ] these bank loans Their reduction could be accomp shed b faction. Low prtce~ for lea~ tobacco permitted introduction of ] several meth~ls. One wouM pe through a cut in the inventori~ new brands retailing at 10 cents a package, against the 15 cent 1 which would only take plaee if volume de~lilw~i, and the trend i retailpricefortheleadingbrands. A~are~ult,the 10 center brands i now in the other direction. A second would be through a rnu~hre~med up. In 19,33, American, with other companis~, tion in the ammmt inv~ted in inventorie~ while main did penance with a price eut, permitting leading brands to retail them at their present physical level. This could at the attractive 10-cent level. Subsequent. correction to more only if the price oi leal tobacco m.,~ed lower for geveral profitah[e prices was SlOW A third ahernalive is [o l/quMate Ihe debt out of earninll~, Since that time. I?aI tobacco prk:es have been much higher, ~hich wouM require a marked increase over the pro.eat rat~ and have fluctuatt.d much le~ss widely. But continut~t presence of earnings to make a sizable dent in the tf of the 10-centem, as well as inere~ed competition l¥orn newer become~ apparent, of course, that the entire industry is brands, has permitted since 1934 o, ly one pr ce advance whic li~-hed an a higher level of production, financing tha to American Tobacco Co. is the fact that I was not dictated by increa~'d taxes. Th s advance was an short-term borrowings through equity capital or he one divtsion of the bugine~ which has increase of 15 cents per thousand made n t937 vith the growth in population of the country. I Such a tremendous market as that pre.,~ntod by the c garette " debt would be entirely justified. However, the s~de of stock would dilute share earnings uhie~ the ge production of smoking tobacco in 1940 business has proven a f~rttl*~ field for inKentive minds; new ideas to improve profit, margin or greatly increase sale~. ,r the 1910 total, the per capita consumption in promotion r ew dens n mail~fleto-re ~'ad new styl~ in"cigar , and thin m true also of mmff and ogars, ettes are presented to manuf~t:tttr~.-~luently' il~ause Nell,, Taxes ttard on f.'Ottl/~dtly ~batha~ thos. d~b, mmi~ ..... t obt ...... g [ tt~b ..... users shift their prtfe~enc* ~ .... faet~ ~ta- D Co users, lnere m also lh~ threat of/raze each ~dea car~fully, since pre~nta~on of new idetm may Currently American Tohacco is in Ihe p~sition of ex~* emend as the older users disappear from involve expendltum~ of miIlior~, . i~¢ing a marked increase in ~ls me.me lax bill under ttm ] When the 10-cent cigarette~ ~tr~d near y 25% of a I the tai law to help finance the de e sei r)gram. This incre~ge, apita consumption of the principal tobacco J cigarette busine~ in 1932 leading compan e~ weiglled the new- ~tl~, -omex wi lout e, ny c~ mpep-~ t g i Crease in the tom. strv ~ shown in Table [. In this table, I comer in the balance anti reached the c~nc utl~~it WIll I~Y'~ vo me g' w lg d r c v out of the defense work. If t~t . includes smoking, chewing and plug and / a depr~;,rs[on baby and could on ~ be-,ln~urisll~l~t~:~-~t t~me t me iz he future axe nplinn from excegg profite taxer m Im)unds: cigarette~ and cigars are shown tobacco. With thisdeciaio in hand, the '"~igThre~_jl~ettl sh0,atd be based upon return tm invested capital tha company he,dual unlt.~. ] no competitive brands but tim challenge was rlt~'~V price might be in an unfavorable positiun, since the book wd~ of tt~ kith ctgareHe husme~ made 'ap the bulk I against price. Despite increa~d h!af prices. 10-centers st01 ! common i~ only about $25 a slmre excluding patshts,:.trad~ e industr:~ [n I9l~ and I9t4. Reynolds, continue a definite bul nol expanding factor {n Ihe cigarette mark~, etc, valued on the books at at~ut $12 a ahara. , cigarette busine~ in the dis.~flution, intro- market. Despite present adverse tax influentm. American Tobaeo) Within Ih. )asl two years, however another uew cha]]engcr will probably show greater earuiugs i 1940 than last yl~tr, ulds, including Camel. This competed with has entered the lists against the leaders This is the long cigar- > t s w "b e i ~ ; art to a dividend m stock of Amer|~at~ ~ ,ttStrike & M~erSbrand In 1!)16 Amer call Tobact~ ett~ American Toba~:co Co. lhrough its" subsidiary the An eri- 4 Tobecco paid to it bv ils ~ubsidisrv, the Amer can CigatwRl~' nee el the intense competition prevaitlng can Cigarelle & Cigar ('o., ha(~ been unsuccessful in i~ efforL~ to & Cigar (%. " " t~ F.'.~'O "1 0350,9,.25
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~,~"King Size" Clicks But despita acceptance of now Pall Mall and other 20% longer dgare.es, no stampede to new size is likely. Akmg about tins time last year, belm,d.the-hand talk m the cigarette mdu~.try usually w~rked around tll a questvm t~hieh had the time ~,r~ te.ter- books :.','ill the leading cigarette hr,mds he h~reed to g~; "luagie"? Reas<m for the q~terv: The appearance og the "'king size"~ 2(}% longer-Pall Malls, n,anu- factnred by Amedean Cigarette &, Ci- gar ¢;.. esuh~idlarv of l.ucky Strike's AlllcT~c,tll Fobacco" Coi Not that kmge., cigarettes were any- thing new to the mdustD, They had been on the market for years-but in high-priced blends and cla.~sv caMboatd packages It was in 19~g that two brands of lougies hm,ed .p at p~pcilar ~)IiCCS orlc &)f ii,IhtraL ttllfla~ored to~ bacc~i bekmged t~ tile beighttm To- bacco Co, the o/bet, to Riggio Tobacco CoW lhggm's Regents was the first longer cigarette in a con~elltional blend designed to appeat to the volume market • llow They Scored-\Vith an eve on P.egtmW quiet silci.v35. Amerie3n ('Aga~ ette & Cigar h,ottght aut the long Pa)l Mall in Sept.. 29~,~ Backed by arl impressive acbertismg sphsh and a lib e/a{ sampling calupaign, Pall Malls clicked o~ernighL Sotm, Amerk~m ~as predicting that ,*,ithm 12 months the new "kiug size" Pall Malls would tank fifth in the iud~ts try in size of sales 0t%V-No~ ll'~q. p~8} SalEs v, ere mmmtmg at a rote Buslness Week , Pabruary $, 1941 that more than t~mk the edge off what u-creed ] kc an 1 precegently ) ras} pre- ~ dicsio/~ fat a ne,acomer in an /ndu~tn, " whose big-t/me circle is abeut as ,a,s} j to crash as Buckingham Palace. • Up Against Big Thte~-At the Pall Mall p,oduction wa~ running, t,~ 75,O00,t)00 a ~eek. and lagging behind ordms I'his 6gme wmlldcredd Pall Mall with an approximate 2% of total weekly cigarette roles-chicken feed wbe,~ ~tacked ~p against tbe salcs of the big three. Camels, Luckics, ~s~d Chesterfields, b.t big piekmgs for a newcomer. If the Pall Mall name made good /ts nl,llU~fact~lrt:(s boast it was plfliB that owners of tile big, established brands ~ould be in for some pretty heavy thinking. Nobody expected to see "20% hm~er" (',amels, Luckics, ;rod Che~lerfiekb but file cxpt'ct~t~on tl~t, if P:O] Mails fi,tged ahead last e.ot~gh, imh~stry }~tdErs ~,'ould woteet the,nsc~cs w,th se¢~mdart, br;mds in the v,~luine market price bracket. AIth~mgh clgalctte t-onlpallle$ dose llloilttled about their sales hgure~. tests tm key dealers have indieatcd that m the past the big three drained off abtmt 75% I~t the by, sinews. Bclmf is i that, allhmlgh their umt sales ha~c :'~ mounted steadily with the general in- crezlse in cigarette cln~uln~tion, the s iipl~alanCc ot a flnck ~f /tartar brand i. the past c~mpk' of *,mrs has pitshed the big thrce's perceniage of the total ; take dawn to around 70%-still a nughty impressive figmc, whell yo/I coll sider that eigmcttc pr.duetmu reached ~. the all-time I~igh at over lg0.flg0.000,-i){ 00(! unit~ m Iq,tO, c~mpared with 172, ,: !ll]0 OfffL000 m 1939 Camels still lead the industw. ~lt:COUlltlng f/)l better than 25% of all salt,~, wi0~ I,uckies a breadth behind Chesterfields em~ti*me u ht ]d a gt:,ud 20% of the market ,i • No. 4 venus No, 5-Phil/p Mmris, ! which pttshed ol~t Old Gold and moved i~ m as No. 4 a ctmple ~ff years ago. now accounts fm between 6% and 7% of tma[ sMc~ Old Gokt has managed hold on to an estimated 4".% of the market. To edge Old Gnld I.lt of N~. 5 spot. Pall Mall production wmdd hawe bad to increase ove~ txvo-fold in the past year• Right now ;ill that ofl%ials of Ameri- can Cigarette & Cigar Co. w01 admit is that Pall Mall's present rate of sales seven tilnes what it was before the a~ette switei~ed to hmgie. This it a [o11~ way from the coveted niche ! as No, %Vhile the cigarette has gained many steady customcr% it ha~ alto iust about exha~stcd the flood of one-shot patrons, always intrigued by a ~e-,v name amt a ~aood publicity job All in all. z pretty t guess w'a.ld be that Pall Mall"s sales now COme to a possible 3% of the industr¢ total. tl A Flared of Long Ones-The trade's
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,( /Te~ruary. 1941 PRINTERS' INK HONTHLY VoL 42 : No. Cigarettes' High Ceiling by HAP, RY ,"-I. \VOO]TEN -r~EW if any industries in America B,,4offer such a glowing testimonial to • 'the Power of advertising, and par- dcularly to the sheer selling force of the "agate line," as does tile cigarette industry. C.¢rtalnly no other group of comparable size within a given industry ever exFcnded so staggering a sum during the last thirty years as flw natinn's six largest tobacco companies. Anti what is more to the point, these particular con't- panics have not only out-spent but also }lave out-earned any other half-dozen units ilx any other industry during this lx:riod. Throughout both hard and gcmd times the cigarette companies, with an innate and almost religious faith in the ettective- heSS of the printed word in merchandis- ing their pr~tucts, ha~e pursued an ex- tremely liberal adsertising policy. In fact, such is their reliance on newspaper and radio exploitation for their wares, fl~at the managements of most of these companie~ are far more likely to increase thclr ad- vertising expenditures in times of eco- nomic tlistre~ than riley are to redu,.:e ~uch appropriations. Onh" in rare in- ~tances during the last decade [la~ ihi~ large but essential item been seriously one- tailed. And in such cases the fallacy of such econom; was readily seen, and al- mo.t invariably normal advertising was itlronlp[iy restt~red. Perhap, the most ,mtstandln4 example of what happens when units enioying .uch hu;e bu~u:css ~oknnc as the ciga- rette un;mtafacrurer~ starl to pull their ad- ,,crti,tna pur!chc~, i~ to be found ill tile m:.2 r~}mr:lli~:s ,~t :he R. l- R%p.o[ds ['~ baCCo (;ompa:Iv. \Villi nnclTipl{)'~nlt, Ftt ranlplnt a'~,! ~ket-bo,,ks exceedingly, thin. Rc,.n./d> dh-c.:,~r, derided m bank 54,*~oo,oo<) ot u, prc~ic~usb.' appr,,prk~led ;id~crti~ing fund* f<,r thdt )tar. "[tic inl- nlcdiate result was that its chief pr~xtnct-- t'unc] ~igarcttes--cxlwricnccd the sharp- ot ,rod in,>< dr,l,tic dccihic ill ib hiqor,.', J..in~ ncarh te:t hillh)n ci~larette..r :,o per cent of its voltlinc of the pre~iutl~ ,.ear. Replete as i~ the story of this industry with individual hraod failures a~ well as its successes, the phenomenal growth of cigarette consumption in thi~ country is indubitably interlinked with the deveiop. ment nf nation-wide and unprecedented advertising campaigns in promotion of this product. Anti the tobacco tycoons, riding highest on the titles of commercial sncce,~s, are loudest in their praise for the part that advertising has played in build- ing up the brand value of their products. Although per capita use of cigarettes in the United States has increased from mo to L3oo per annmn in the last thirty years, consumption in this country is still from 35 to 4° per cent below the rate that pre- vailed in England first prior to the present War. The growth in dgarette smoking in America, however, has been phem)me. nal. Less than nine billion cigarettes were consumed in this country h'~ Igta, yet by x9~5 consumption had more than doubled, lnm×tuction of domestic blended cigarettes ahmg with the influence of the World War, which went a l,mg way to~ ward breaking down the preiudice agai~ : smoking by women, virtually revolutil~: izcd the tobacco in,fustry in the decade that followed. Huge advertising appropriations b¢~' to appear on outdoor po~ters fringing the country's highsvays, as well as in news- papers for the first time. attd these aggres- sive merchandising actlvtt:c-; accentuated the natural tremt reward cigarettes duriag this ten.year Ix'rio& C(msump:io~t qua." rupled. By i927 consumption wa~ jmt short of too billion. Women by now Were rapidi:. [~¢oming wedded to the USe Of cigarettes, and with the exception of the t931 t933 deprm~ion tx'riod, cigarette consumption maintal.ed consistent gains for more than thirty sINCE the dttsolutlon :* the Tobaccm Trust" by Tht Un)l~.d S)~)~'~ SoOrlrm¢ Court in 191 I. keen c0mpeT~Tie~ has ~P.U~8 up ar,-~ng rh~ v~.,ou~ comp~,~, a~d ind~v)dual ¢.gare)te prod~t;o, became at ~r.ce The w~st zealously guarded and desired b~t~mat,~n in the i~- duslrV. Trad,t,onallv cl¢.~-mouthed and h,ghtr selt-¢~nta~eed, tittle ~f ~.- hg~ ,5 s~ed o~ th,s ~ubi~T from w,~h,, r~,e ,~duslrV Con- se(~enl~y aclu~l proe~:t ~ ~f T~e pr~ncbpal c~g=re)~e b,ands h~s b~ one of ~he Court T~'~ greatest guessin~ ;am~ In~erest ,n ~he subfecT ~ heightened, ~uT ~ me ~ore e~- l~hle~ed, by the hbe,a~,r,¸ ot the ,ndus)rv'~ advetlismg carnpaig.s. Fr~ time ro t,me mar~atacturer$ measure T~e:r ¢~afm~ a¢~i~s¢ each other w~th s~ch ~(~e~t ~loga~ as "Tile NaTJO,~'S Largest Selli~¢ C;~atetre," or T~e yc~r Favorite ¢,gareT~e b~a-a ~var~abJv e~pe.,- ence~ a temporary, ~r~,:e aa*a~)age n~er ils ,.caresr =,:~per,r~r o, s~'ters ~ comoari~n ~,m ~t~ r;val~, a~d ~arse~v ~ zrOO~¢t~on tO the ~a~,ruce and et~¢c t. c~¢ss ~r ~rs p,om~tLo~a, T~e aumo. vt ~is a,T c e ~as made to. ~c last dt~c~de a specialty ,24 analyzing ¢,glrette !~.¢o~¢tion arid i$ accepled in the trade al~ authorily on me subi~t. H~ ~Tem or d~ doct~on has redoc~d g~sing on rhls ~,ivlll matter to * ~t~imum. a.d h~s ~t)maT~ On producT,e~ ~e the most comprehensive arm • ccuraTe oblaln~b~e. H~s meth.~d ~ e4..a~=irt the nation's c~s~re)~e o.~tout ,~ b~sed ~ ~e. enue coileclions from the *ar~c~s Federal d~l- )r,¢rs AIIowan¢~ are made for the inteemi~. gbt.g ot pl~.) t~:~hh~, ~r,d due con~d~ar(c. is give. other v=.i~¢s ¢~T¢~ :~ ~ueh etch= cu)aTionl Re~utt~ ~rlt th,~ ch~ed ned ¢~.= checked wi~h w~o~esale a~,l re~:~ T~ade try" ~. ¢onfirmatio. of The sal~ ~r~n~ Co.secl~; ~ it ~ b¢liev¢'d Ph¢ cieareTre ~roducT,o~ f~ reft~T~i the ~l~¢Oximale Tr~le STat~it~41 Of it't~ii ~ati~S brands, bat naturally the-., are rmr of~ fic~,ll. Reee.)ly more ¢cwno~eTe ~nfo~malkm bearm~ ~ the ~iect has bec~e a~a*~ab~e. r~:e~taTlng rev,smns )n certa,o rse=~¢¢~ ~rom pre'*~ous p~oducr,~ ~a~s pub¸ s~,e~ b~ ~ear s ~'.enue ccflec~:~s are at han~ CIGARETTE PflOOUCTION 8Y 8RA805 IN 81LLIONS OF CIGARETTES 19~0 19~,1 19~z 19$21 ~934 193~ x~:,~ 19~7 193~1 193~ ~,9,~0 PHCLIP MO~)S 3{ ~0 7.5 ll.O n*LF.tGU .... " 4 ~ 2,O 3 5 5"5 9 O ~!S &AI MArVeL .... ~ 6 15 e~ S{NSATtON ..... : ~[j a, VAkON ....... x 2 0 ~ ~ a3 ,~ TWE~ITY-GR~,NO ~ ~ ~ 5 o s o ~ o 10 42 3.~ a o SA ............... ;. L'., I:{ ~E~0~r rat~gvrot~ z 5 1o 1 2 i ~ ta ~O~INO * ~ 2 o a J t~1t ,~L ......... , ,0 ,., ~, ~., == REfit NT$, Z w~vre Rot-cS ~ZI x ~o .............. MI~eELL~IYEOU$ .... 70 l.g .$~ 2,1 59 39 41 .~9 4,1 l~l TOTAL ...... tt9~ ll~,S 103,~ 112,6 1256 1546 1531 1112.6 le~.? ~12.4 Jd~KO x--'r,, C,nl er=~e*. Z--'Loeb" or 8~-m~,)wm*t~ ciO.~,tt~ v-~,nl~o(~t,/ e,=ed. l'l,~l%TEI,t$ INK ",lO\qlll "~ t i t',Rt ~,R'( Yill "3 F~ T ,',',tO "I 035042 7
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ll:I:lrI~¸ Stll~)kcr~; i(lt~J ~.J/c "'r¢;}~ y!~ts~'ov,~"" hab[I durm~t the dcplh, ,d the dq~rc~iun. blH ~'.hcI1 dtlC c~*[Iq~]cr.lIIoll is ,gi',cI~ [Jlc aI~prc, c~t¢'ntcd /,utl in t~I¢ ]lam]-roI]c~] [n!!~c!llcrn ~]klrIi1~ :his C['[Ii(,I] pc.'rlod iit 'a[l*dc,a[~ unemployment and h~w pur- cb:~,m~ powrr, ,~m~bmcJ ixm,] anA m4- cilillC lll4dc Ct~[41't'U~ tHldOU[)tctl[~, Otll- ~illllCd [g) Sho~'* ~tfils~arltial ~1111~ c~cl~ ill d~cse Ji~cuJt ~car~. In ~V~z and ~gV, "roliq, our-own" consumption is estimated M. reliable sources to ha~e reached cto~c tn r}[:~ bIliioi~ cigarcucs annually. \Vhiic tl~r saIc of tobacco that g~x:~ into "'the making¢" i~ much less profitable f{~r MklI1ULtCtt/rcr~; that1 the machine.made .; ( ;" dgarcttcs, produccr'~ ~)f the leading iw,md, were /le~4'r tlil~]u)y alarmed] at rbc ~cm~;.- rary ;4rm~th in thix r,.pc ,>f con,unlp!t.rl. Tile "nllI-y(>ur ~.wn" !11t)x cnlci1t m~ar:abi} ~:ZJtl* in lllol~lcnttlm ~]urillg "hard tlZ~le;'" and rhG letnp~ir,u y di',ersioo of customers ,,vas phd.~ophtca][~, :lcccptcd by these pro ,luccr, as bur a ;cmporarv "res(r',dr" ~r)a- MIIt)kcFF., ~cr~, iI;~ :~> prc~ent ',he ~>,~ (~f the cigarcac habit agamst ~}lt: :ln'~c when economic conditions improve .ind these smokers return to tt~eir fa,.oritc brand of machine-made cigarettes. The actual amount these indhidua] conlpanics spend fnr promotion ill any given }car, while of le,s immdiale si.z,- mficancc lhan pn.~Juction figures of the 1' .7-- i 1 "i °t ) x,trl,,u, br,md~, is cuualh as dii~cult ru .~ccrt.ul~ Iht; d~ouM be readll'," appar- gilt %lien I[ I! realized lhat ,mI; IIi~Dt~I [,]cte ~:2vlrc~ ~ln tllrce !tcnlg ~r¢ ~:.nL~[~]c ~mt ,~ torr~ ~u~ lrctN in i ltlu<ir'} a~<er- I [hID .~ 01hI~rC~ A]I}~IkI~[1 rr.ls nd,4re naruralh- 1~ '~(3i!lc- w]).n vla~t~c for t!~c ,hr}crent umt,, t,r~ e ]~¢)llfJll,ll C\1~¢'11%¢ ~ lot the di/}cren: ~orIIpartlc~ rt~l/ rouRh]v v]r~c to 5 imr cent '~ " ol ,.Hcq Strict the nations tlg.lre~e our- pu~ last year should ~ross the manufac- turer, welI over a bdlion dollars, the ,>~er,lll aA~crli,ing bill for ~g4o wa; prob, abh m *'xcexs .f S~o,ocxxor,:~. Thi, figure w(>uid tncludc ,dl cxlx'nsc prot'.crly charred to the ;o-called maid ad~crtislng ,' I~¢1\ i [ I¢- I\K M( 1', I I II ~ - I I BRI \I;~. lu ~1 ( R?-~/.,,'~0 1 03504.28
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NEW CIGARETTE: OFFERSBIG budget, such as biitbuard, ",vimh~w di~- plays and +'inside ~ampiing"~r frcc ciga- rertes~iigpIa~ ~, ct& Reliable sources estimate the six leading cumpanics in dfis fidd q:.ent approxi- mately. $32,ooo,uc'.3 on tl~c three principal media alone last ",car. ~hich is ~xcius~c uf the incahuk~bic cu,t of radi,, talent. This i5 abou~ the sanlL' aIll{}tHl~ :Is r~x- pc]tdcd mcr :hc~c media ill 19;9. but pr{~babl) S~+or~,,'~} to S4axx}ax',{} k'ss dxm :i~c t,)+',S ad,.crtising hilt. The amount ,p,.'nt +m radiu titllc alone [or t]l[~ indus- tr'~ ran conqderabh" ahead of t9-;9. For the ninc months through September 73. tobacco COml}anics spent a total .f St+},- 74o,{~L~ for radio time over the natiun's three majnr broadcasting syst~ln~, COil]- pared with $m,225,c*)3 on this item f,~r the whole of ~9";9. Wi:l~ no evidence of any curtaihncm m &is form of ad~crusing in the final quar- ter, it is indicated the indus;rv's cxwndi- turcs on radio time ]aS~ ~car exceeded $14,1x}o,(l*x3 ur ilcariy 4° per ccn~ more than m the preceding }car. l.i~gcrt & Myers Tobacc. Compan~ is ]cad]~g ali other companies in this medium and ~l'~nt 52,~t)2,25() of tile ah,>ve total on Chester- fidd ci.aarcItcs. Ahh.ugh considerably smaller than arv. .f ihe "'t;ig+Thrce" companies. Brown a Wi]liam~un Tobacco C~>mpan', ha'~ ~,.', Jctinitciy cmura:cd into i+;~zumc ad~crtis- inz. and is in ~ccond place 'vtth cx!x'ndi. ltlrcs of 52.11J7.73{} oil ii's ~,.irlt~.lS c]garc=tu , • " %, ~+~,~t ~..~ ~= + ~++.~.+~ +~ 5i, m, tki,g is hapl" mng t, t],,r [ig'+P'~ia ~''~'~'+{'' [L :5: i : I ~+ . +~ ,, ) : £ :::2 -7 P~ T ,'.40 ~ 0350~ 29
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and smoking t~acco brands. American Tobacco Company ranks dnrd with total expenditures of St.642,Sab, of which St _~27.6,5 represented Luck}' Strike radio ihme akme. R. 1. Reynolds Tobacco Com- . , ' .~,77:' " 5 '~ :7 2 :,7on ae for this period cost St.z35,oa,5, while P. Lordlard Company ~pent S~z6.73o pro.- no ins Okt Gold and ~nsauon cigarettes tl rnugh this medium. The twn nttl',[ expensive ilellY; enterin~ :lnl} ~hc tlt~.ration'~ id fl~e~c ColrlpaI~lie' are the cost of leaf tobacco and advertising. Consequently. in order to determine the effectiveness of the loiter item. t is equally as important to know actual producthm of these manufacturers. With none oi: these item~ actually kma~n, the most painstaking rc~earch efforts ot statisticians, on such in{ormation, are received in the trade with a good deal ~ skepticism, q'he reaction in such quarters is that "whde figures never lie. liars mmetimes figure.[' ( otlscquentls', tile ~.aslf atnount t)[ statisti- cal da~a a~aitable on such subiects must i)e taken with a liberal grain of salt. F.r ~----~.~~";1 rim reason no dqx:ndable corre!au,m c,m _/~- K" milde between ad',ernsin~z aild %lies ~11 ~aho.t the (' \ an'. omn,anv for a ,:!~cific :,erlod. In lieu (~ueS~~°nsa deductions ;rod estimates are ,~drrcd--to l]tat extent ~hev arc cn iah~cl~ln~, alld ~',i'h{n th{s important hilt [1ORe tI,,1 IT1- [i~FIII,U D c itaduslr~.- (]tlIISlMt::I[ and hberai adxer::slna p,,]i ties, atong '~lth Ihe system of re~arding [11,1n,1~c11/c1~| hv iP, Cc;lii~¢ p.l', ,,r [~iiiltlsc,. ~ c~en a cur.orv stud,. ~,( ~l',~ md~',~- u'y. lames F.. Duke, virtual founder of the nduscr'¢, initiated these prfitcipies as the essential {undamental~ fi,r .ucces$ while fashioning the "Tobacco "I'ru,t "" His business ability is still revered by his younger associates of those stirring days, and when tire monopoly was subse- quently dissolved, these basic principles were largely adopted amt h.t~c l'~n at- most religiously followed b} Ihe separate • companies. Despite the various manage* mcnts and the country's changing eeow ...... on/y, most of the tobacco manufacturer~ ..... have hewn close to the bne laid down bv Duke on questions of fundamental i~li@, and the tremendous influence of this man ~n the industry is still very much m evi. dence today. Without question d~c active manage- mcnts of the tobacco and cigarette manu. facturing companies are outstanding be- lievers in and ex[mnents of the ~aloe ~ vertising. It is their claim that ad~crti*- ins in reality is ".alcsmanship-in-prinff~ and that with the mtr<~tucfi~m ~d r}w radio within recent }cars it has become "'sales- manship-in-person" as wr]l. H~vwerer, well-informed tobacco men• while ~eeog* nizing ibe mass tmwers uf advertising. insist that the mere exi~ndilulc of tlloney ahme will not do the trick. Indeed. a de- tailed analysis .d Ihc opcrati~ms ~d an'.'. one of the companie~ o~t'r a ceri,z,d years will show this to he so, During the }-ears when the greatest ex- t~nditures for advertising ha~e bccn made sales ha~e not n¢cc~-,-lr{l~ inerrancy]_ O~ die .>ther hand. ~bcn great campaign.~ have been concei~,cd, II1Ote moderate penditures have resulted in much greater results, lust how these cxb~nditures should be made. just what "knack" or "genius" these men have- these managers ~,~" businesses, who are in reality saicsmen on a grand scaie~annot be defined. I{ ,,vouM i~e as difficult to describe those qualitic~ daat go into the making nf :in mdi~idn,d ~;dcsman. (]crtain it i. That a dcfimtc .cn,e td timing, of public :".'iS, :um,. ,,f puhlic :rend~ and ,,f public in; rcrc,t> ar~- e>scc,:i:ll, and those CJlHnlakl,l~ :}GIt [~,iNL 't:Z't'l~ HIOSt prothlt:tivc lot £;~ ..... rc~Irs il;l\ c ti'A:P.'~ [3~'~11 and it Is I~rc~.lii'~| ]~t:l',~ ',t,li bc lhosc campaigns ~h.i~ arc t;l'a,~ [~;llll,I;] Ill !]lcir [{}tlCIi :nld [11'~'[ 2!2F~a ~-r:d in their [~ipular appclll. \\'iril +~]*~ n:ltural trend lhal began t,~ manifc-t .......... .dr f,,r c~aarettes iust prior to ~he \V~_~rM .......... W:,r. and rcdeefing the undoubted ~fi;~ii" I.aion u, thcse advertising ~mtla~s. i].lii .... form u( o,n>t.nption increased ff~yal Ig.'~Othtl(lll.C'l}l~ tO I72.4UO.T~OO,(~ Iini{s ~4lgt ','ear. "]'hc ~r:m,lt~m iU the smokina I'~RNe ~ls of the nau.,n is reflected bs [he de crease in <ig:z~ consumption during this i'~rkU from xc~n billion to less than ~ive hilli,m. In connection with the dee|ill¢ in cigar consultlptiml durin~ the past tWO dc'cades, it may be pointed out that the I'RINII.ba- INK M \llll)i - II.BR['kR'Y. t~t* f T,w,O "103504.30
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j Here's JINX FALKENBgRG... :A,rc~,£s ~o. t L..c*C'ar:t,'r--Y.'c I//:1 Zllt. ~? FREE OFFER " ...... ~,. ,~ ~,<,..~, ,~a HOT! °' ,.ow. "PIe'" In Feb. 18th ]0 - Cigarettes' High Ceiling bulk ot smokers ;verc cont~rmed to IhaL product many years ago. alld arc no*,',' ap- proaching or arc heyond the actuaria[ period of life cxlwctaucy, while the smok- ers becoming of age ;ire cigarette con- sumers. With consuluption sfmulated by the nation's industrial and increaxing military ac ivilies, cigarette production is contiml- ing to establish new monthly records. h~dicadons arc dial the ndustrv manu- factured at least ~78 billion and posfibly 18o billkm cigarettes in 194o. To this figure must bc added the unknown quan- tit,,' of tailor-made or "roll-your-own" su{okes, ;ariously estimated at thirty-five to forty billions, which would lift the combined domestic consumption to the imposing total of 2U to 220 billion. With tilt" exception of illatctles, its confederate ally cigarettes perhaps en ov the greatest rate of ¢onsunzption of aoy other prraluct in the world tf~.lay+ And if you want a better perslmctlve of iust what a billion is+ and the staggering rate this nation is hurnlng tip cigarettes, it is iI cresting to reflect that there have hewn dighdy more than a billion minutes since the beginning of ~he Christian era. In 19-]9 the industry's maclline pr,~.hic- lion was 72,41~)>tx)o.n~m. cigarettes, anti i( is con>crLtri~ety estimated it] tile trade tha~ an atttditiona{ {hir~}-lzl~e billion ,,f thc "roli-~.llur-oWn'+ variet!, werc con- ";tilllctt. I.ast Itll/c die industry tllalltlfAc- lured nturc than It.~OO,UG~O.C47) ci~:irc[{c~ This is :tit increase ot nearly..l billion cia arettes over tilt" same nlOllth {I1 19~9 and estahli4~ed a new high record in monthE' ,.utpnt. It is true that tune prodiacli.n was ;ihnormaliy iniluenced i~ kfff1,ldcr al~tc <.ckin.z, ill dlc tr.idc in .tp.Hc*.!i;ni H3 ,d hither prices wlien the incrc':i*cc] Fell C r. ~ I cLl ~ [~c'c :ll t I c" c.ttct'r i ~ c" 7 .~ ,; I:~it q ~11 r ~ ~ i- di~idu,d m<mth]~ rcc.rd> ','.ere br.ken rc pc'.ucdb' I,l~I war. ~'{(h lhC ¢'X{1{" t II {I ~[1 I J{ ktigti< till' i March. each mon[l~ laq ,.car -ho~c,l o,n {il~Uotls llllplIO\ c IllCll[ <~cr [11c" .,1111c nl(ll/[[l~ ill [he pre~iotl~ !,ear. Cigarcltcs lace litt{c if an*`. !o,s of pat- roll.iRe from tile natural mort.llir*` rat< for a om~idcrable pcri,M. ,ahi~c on :1~, H{htr It.rod ~t i> c.t{lll:lVc4! :.S,'a~a~x~ }¢ltll]~ Ing'n ,ll~lJ '3 OIl)C)) 3re hcc,,mi~ ,,f ~mok- itlg A~C .IHIlU,tII\ in thi> o*unerL h [< hdic,.cd 13y tobacco nlanufJcTtlrL'P, {I1LI[ oUtV about -;~ per cctlt o{ ~he .mnllr~'< present I~)t~ul;ili(in arc cigarcttc o~ll~UlU- ors. TIl¢*C factors, along witt~ the ~,,n- slant gain in v~onlen smokers. ~,,i{,{ seem t~ offer little indication of an~ ncar- bv saEiralion point for cigarettes. : "I'0 dlc toner,lie, it is the oph'don c~f I ~eicran :obacconists that the ciRarcik" horizon still has a virnlal unIhnitcd ceil- htg. anti thai die talc of expansion will be largely inlluenccd by die ingcnuitv and mcrchandidng ability of die mamffaclm- ors. The increased use of cigarettes by women alone in lhe next fuw )cal~ will undoubtedly prmokc cunsiderah]c in- crc'asc in COtlS~.zmptiorl. Aitllougti U, lomcri reatly beg:in to take m clig:lrCttc., tithing the World War p,.-riud, tile) v. crc rests)ri- sible for only about 5 per cent of tota[ consumption in 192a., and while they have been smoking in greatly increasing num- bers in recent }cars. it is bclicvc i they still acconnl for It.s~ lhan 25 per cent Hf IiIc indu~tr?,'s iota[ output. hnpartant as has been the boldness aml liberaliv,' in cigarette advertising, this in- dustr5 coukt ne~cr have sur~i~cd tile rc- l'~alcd attacks from minm'ity groups wilb strong prciudic,% ag,uw, t stab>kin!g, car- ricd its stagKering tax load lind weathered busincss deprt.ss]ons Oil its ilromolitn~;l[ ct]orts alor~c. \Vl'dle the succe~ or fail- ure of lhc iuncnllerabie cigarette brands introduced on tbe American Inarkct has been almost ¢qltircl)' :lHrJ}ltircl] ill the ~)ri]. llano," or ntedi~Kritv of its ad;crtismg. nlcrchalndi~ing and t~thcr promotional of- torts, there were ocher facturs o( ulore rhan passing illlpottance that entered into the dc;-I.'llngtl'ncnt Of this great industrL .-\utonlohi[es, suhwavs, stiffrage, prohibi- tion and Ihe higher tcrupo of American : life in ~gcncral in the aftermath of the W,.rld War, :AI pial, cd their part in break. l:tg tll¢.'cll ht]ii~fli, lns again< ~h,lr f,,r a mix" w:~* con,hk.rcd .i sis~) h.d~ir, and in creating a desire for ;, "'short" m~.ke such 3<, cill~arc[n?~ oI~CFClt. Vc.stcd witi~ the first radical "'ditier. ence'" to sell f~r tile tirsl [lille h3 nior< ~han ;1 quarter ,d 11 cenlur\', the Cl~;IF~-ttC indnsrrv is excn now nn Ihe thrc~]'.~id Of cq~C tip tile In*r,t exciting pcri~xts in its i,ID;~ !llti turbulent hist,lr~.. Faced or, :he I']~[" h;,ml ~ith x~imt purports n:, pr<~e :ilc tit<,>{ i ~ r tn t ~c opi c" ~ii'.cc ~]'-~ k~m>,tuc~h.¢l ,~t dw J.mc>/k bl ,de ,7_~- ,l~]/cr ]/.iru] ,~ {~i/ [Ir,!~CcLtt]t)ll ~\ :it:" { }~,~-~ rrim<.*n b,r .i?h..:t,,f mon+,p,q{,eL 7rxc- :1co% :tit' il~iLi<r~ [~ {:lirI', ~....,i.;. ".',i{]I cxcit< mcnt ,\r.d e t1' ~ ~c' '' }~' ~ k :'~ ''L~ ; ~1i ~ ttldtlqr~. <i,. tIl~: <1~ [l tlX~ iEment ntcan~ .ks tile" ~ariHus conlp:inii:s ~{rd 1]tcrt'l- c[',c', f,,r pr,,tcctlon ag&lI1M att3ck~ uy~:e: "tic" /L~i/l~r't {tlq!l '~i[i~otit. ;tic TI:,!*CtLXl; !tl n'lA~cnlctlt S {re [3t:s; jil~ { lcnisc ~1C5 -. :h.ti <d the FL(*`t." "*Lou:~" ,~r "~-~-mlilL nlCfC'r <}g.trc-t{c. O( ll3c two pr~d;lctlls CUl'rt>i7~lv CoP~fF<)D[n21~ the incttinlrv, dti~ [alcst torn1 o{ cigarette mcrchandlsing b; by far the most taiked of in the trade, and .... is ~hc i>rmlary and most immediate O:m; certl Hf the tobacco nl;lnUfaC{ulcrs The spectacular tjrowth of rite longer 777: cigarette, which ,Jt:lers the consumer a 217777777 PRIN'It:R> INK 31~lNIIII ~ . I t.tlRLAR'I, I~tl Rl;~01 0 3 _~ O& :~ "t
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Quality in Premiums --or Else ('<*tttlnu¢>d [r~.l p.cle 12 truc extr.~ dividend and ~he buyer di,e~tly prcni:s a) I~zat extent, It i~ i[ii~u~rtaiit that close contact he kept wid~ colibumers 'i.l.'h(lqle vie\vs and sugges- tions can be most helpful. Not only is this a check on the over-all etticiency of the operation hut is a most useful guide in futurc planning. The direct-mail contact with consumers can hardly be overdone. People appreciate a link with the usually vague and imix:rmnal source of their com- nuxtilics--hence close attention to such correspondence pays big re~urns in go~xt- will. In premiums even more than in other channels there is nothing like a saris fi,,:d customer. The aptmal af premiums is enhanced by d~e offer of items which fill a definile want but in the ordinary scheme of things are not bought b~. the masses of the con- suming public. Also the ofter of some- what better merchandi,e than the avcraRc fnouseh,,Id U~Ltall} acquires is a point tea." intr~iiics interest in quality premiums. There ;ire certain basic requirements which must be met in the selection of a successful premium-- ~. Quality 2. Universality ;. Accc.~t ai~(iit} 4. l)csirabihty -~. Udlity Some oi thc,e ,dr-explanatory qualifica tious arc practically svnooymou'; and the order o[ their listing has no particular ~tgnificance. All of these points muss be met to a grea~er or less degree if the prcmium i, to accompli>h the de,ired re>uh~ Ho,,tc~cr, die qualk:y (~f ehc I,rcmhun is c[car['~ the Illume impnrtant ~ingte pre- rcqtliSl=c and any ,2~,lllpromixc expos#s the u,rr n~ di,appoin;n~-cnt. With nl.,I prcnunlll items ~lallona[ id¢ n t {t~u.i~ ioi1 through ~4enerat .ldvcrriiing is the P,l('J~ eiic~rl~e tncan~ ot es[abiidnng the quality factor in tl~c minds oi :i~e constullillg put'~- [ lic. Either :he item ibdf ['ntlst 1~c ~t> wcl[ km~ n lhat d~cre can be m> qtlcs[i~irl tif iD, ) IllCH~ ,Jr [he repu~a::,ln o( ~hc ~l~cr f~>r lflp-nOtC]} pren]luI]ls lI]klSt ~'~¢ .t bv-~,'<ord. Thi~ cmpha>ls on quanta, is usually im- l~>rtartl ell ~]ircCt pre>portJoll g~* the anloun~ ,~[ eth~rt expended to obtain the premium, If the t,~cnmim is low in cost. the b{ind ,,:~h~c--,,h~iou.h inexpenme and pri- marih ~f utdiiv value--may be succe~s- fully u~d. Wh~'n the consumes has gone t. ~ome lengths, howe~er, to qualify fur the premium, it is essential that a quality ~atue be the reward. I'RI\'I[ RF" INK SI~ ~\tlIIA , tKttR{ "A14"¢. I~.1 Preeminent Users of 51rathmore Letterhead Papers: No, e'O of • Serie, IN PRECISION "~t" O 1U R I~ H T T 1,] 1~ II E,t D? I'III;t 1>IO\ i- l}le ~an'h~-rd at II.adi. Cit~ %lu*i,- tlal[. "l~u ~t~ it in lh," ~urdinat,-,| dancing ~,1 the f.nn,.~ tlL~'kone~.. Ihe ,'~,uile~u~ ,.I]i, b.~l* ~ ,~f the u~h~r~...lhe lun~-ti~maJ ,h'-b._.n ,~f flu, lh,'ahe Jt~i'lf. UId tier el. letterhead, the Radio (2it} Music Hail , h,,se 5tralhmcire Pal.'r. [ll't'lluie it expre~-~e.~ it~ l~usint~.s p~e,'isely...is Irulv eepre,aen- tati~e ,,t the l~or[,]"+- [arg~t theatre. ~l~i~ %~kI[ll pr,*~-t~,n ill lout ]rlh*thea~i . ~ant it 111 ,'xpr,'5~ oxal-dv lilt* -l)ili[ ~l ' ,3tir ],tl-me--, kmt "lr.ll}lll!,~H. P.q.'r , an , ,,m~'~ thi- , bar.. h'~ ~1 ::xpre--i,m f,~t ,,llJ: ,a D.~, h,,ll,ii ,)J)~}'l~'l~, r ill ~q. k 1,.~t,.r ,rilh'n ,r~ -~RIll{~,[¢)lll[ !lt~NI). ,,r -IIIIIH%nlRF %;tilliNg;. ,,,.I. le-- lh~lll [ T'lg~ll" than a leUer ~r [1{'II ,,ll the ~ !?~'ctj,.-I p,'.qwt xlm uti2!u bu~ \r:,] ,,n >TR%rIIMORE P~RCIIMF.N1. ~.1 -I~;~I'I[MIHII.: -i RIPT 1. tine ixl].'l- a- 'all lie nlade_ a loner r',~t~ ~lilh 2.1)' ; nh,ir' ~+~h idu, ~ aiu,. !;,r ,,, l iule ~.~,~t difl'~'r.-m ,'. i~ ~,,und bLi-iue~s ,*+ ,,n- ,~ltl~. fitlathin,,le Pap~.r l[,,mpan}. \~.~'q ~t!lln2gih,ld \la~. S T RI T H II 0 !i E I !~ 1" R (.'1 "1 r'l ":I '< r'~.~ .~ .~
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D•r cent longer smoke short die standard sie..c 7e-millimeter brands, and the increase in the Federal tax on cigarettes, were the l!1,)q inifx)rtant devt'loplucnts enterillg into merchandising of thc~e pr(xtucts last ),car. Between t,o5o and t,o.% eft the long cigarettes are rolled out from rot@fly three poumts of tobacco, while the same quanttt} of leaf will pro,.lucc about t+-15o cigarettes of the standard size+ "lhc introduction of the 85-millimeter cigarette rel',rcsented the first nosehy, the first difference in the actual cigarette that was oFtercd the trade in recent }'ears. But it was not until later in 19-39 that it began to attract serious attention from the trade. The tr,lil into this new form of packing wa_, blazed by The Riggio Tobacco Com. pony. And this young and recendy or- ganized unit apparently discnwred a mer- chandising natural for its debut in this cad of the tobacco business. Starting from ~cratch with Regents, the company o:1 Otis band-packed job alone rolled up an initial }'cads pr~Mucdon of 2~) milEon cigarettes+ The industry pricked up its i cars m tl~c wake of dais spectacuhlr growth and by earn fail of 19-;9, George Washington Hill threw the pres- tige of his American Tubacco Company behind this latest innovation in cigarette making. The compan'y's Herbert Torch. ton brand, and its subsidiar}. American r.';garette & Cigar Company, with its Pall Mall brand, accounted {or roughty i~.u,~•.,a,,axJ~ cigarettes of tile total pro- dn~ti.,l'~ cstin',ated at q.t~,a).o~×h(×x~ to ~.SC~.~x~o.c,.~) in thi~ field klst }car. "]'hc~u cigarettes, ahmg with adiustments m both wholesale and retail price structures on :,I1 branth as a result of the higher Fed- eral tax, are naturally hague an imtx~r- taut influence on the whole pr~MlJctinn picture. Despite the ,eemlng[3 impregnability of tile "Big-'Fl/ree'" companies whose s:dcs are generally greatly in excess of tbdr rk'arcst competitors, tobacconists arc c~m- ,.mood that in the lizhr ,,i rhc cou!',!rx'~ c~crchanging habil., uas~es. .t,.lcs ;rod econ(~n'lv as a \VII(}]~'. !~C\V cigarcHc his- Hie,, v~]ll i~¢' [Ytad¢ h,, t[~c tna!~utacturer ~i~o',vlng am, origlaai .rod ct'Iccri~c depar- ture from present mcth,~,ts ,.;( merchandis- ing or advcrtisin< 3.nd :t is for Ihis rug- ,on that :he md-t>~rv ix particuhrly ['csurrrd t,~.tav bccau.c the: ~pontancous ,uc~c~ nf :he nc;v ",~ milbmctcrs ~ccm destined to e~cnma][3 s~in~ all .f the nlai~r pr(~hlcer~ with ~,nc nr nlorc brand~ irlo~ this qcwer c:?,n'Q~ctitior~ Signii~cara change~ are taking place in tt)c ~umpctitive pmitions of the ngmon's prindpal brands. With the new S5-mi[li. meter cigarette apparently kcq',ir,'4 ~tci', with the expansion in total producti.n this year. American Tobaco;. I.ucky Strike appears to be the only brand in the "Big-Three" group that is making an ap- preciable gain in volume, although Philip PRI\'ILR:" I\K 'q~ ",'llll / • I I Rld XRY I.l~l ~Vhen YO|| Give Away you Inave plenty of takers Exen'homc~cc~m~bcau fu,expcnshe.,,,,ki,m~ ~s.~s ~erhcfooted[ukce. shcrbctl~dwater ~,,hlct ~h,,~ ~ hctc Line mdudcs p~r~t. ~h~rr..,. ~ ..~ld. L~.i r, I ,, . h~,,ra~ed ,xith 22K g'~l& :,t5 i ' .)'* ~r" This bealantu~ly de~tuated <erea[ bolt ¢~:1 be had scparateb or ~ch m~:c~ing tumalet. Choltc u¢ man~F~c~rns ia genu,n~ 22K g,,td band decotanon ~n ~nu- in~ LibSev Sat'edge ~/~s~are Genuine"~K" gold band deco- ration, plus the beaut,,' balance attd sparkle of this r/,m-/,L:~w,r Soft:dec gIassware, makes it the most amazing premium oppor- tunity for lov,, cost• Chnice of many different designs in gold, or go13. ~ith color in floral patr..rns GoM decorated [me of matched stemware consists of ten different item~. Most tlexiblu of all prentiums, glass- ware can bc used singly, seri- ally, or to make sets--120 Fi~'ccs or more, Nationalh" ad- ~ crtised, k'secuupon toriull de- tails. Libbuy Glass Company, TolcAo, Ohio. Br.m,h~s ;a Nea ~"~,rk. (7h: ~g,, Derr,r ~,rLar ~a D a, B,, ~ n [htt~b,ara'a. 5¢ PI~, San Francisco• l',,ronro. MAIL COUPON TODAYI LIBBEY GL'~SS COMPANY. Toledo. Ohm Premium Deparlmem Please ~end me Lull details about Libbc~, $a/edge premium ~rem~ ~h ~u[r,c 22K ~.~ld hand d~cora~ion. Nsme .... Addre,~ ...... City - ...... Sr~le ................... ~i~ 41111!i :ii~ Z / 7 ii~i~ili~i/iii~~
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iii i @£a THE APPEAL OF LUCK COMMAHDS A COMPEkLIHG RESPONSE! "[lu~ aRrLtctl%~ Fll,av-L~ai Llmer ([harm ~i~;~? he altachrd b, ke:, ~'~'alll. ser~e a~ a ~,,,k~t r p-cket-pivce, or le adapted to a ~ar,tt. ,,: ,,@tr n~.s 1,~ 'q~ ?cur rl'qulr,'meT~l~: !h~ \~ etxc1~h rt<Ccd m T/me. P~,l~tlar ~< i,n~e aim dw N Y. Mirr,~r, per/~ct i~ur-l~ai cl,,,er Sl~'~m~c.,* kaxe just IN-come a~ailalde fi.r flJmmert]al i~e .'~r~(] rm~, ~dlile il~ur !~al ,'1,~,'1- are qiII n~.. the~e illltlSual (;,~,d Luck C!lClrlll, are ~ure t,, create a ~ell-att, I~ A TESTED APPEALI BASHAN BROS. CO, 1500 BiiUi~ Si~l~l Rocheitet, N Y HOT Morris and Raleigh, which rank just be- law these large sellers, are also continuing m show substantial gains in sales. All of die larger selling cigarettes have alter- nau'ty exlx:rienced periods of rising amt failing volume. This has becu particu- larly true during thc past decade. In fact, a stndy of imtlvidual production indicates the "Big-Three" brands apparently follow a five-y~ar cede of rising saks, before encoumcring a trade reversal. The inev liable and subsequent slump in sales, how- ever, does not follow any such exact pat- tern. In fact, declining volume for a particular brand appears In vary greatly bdsveen the various cigarettes, and is nf mudr shorter duration than when busi- ness for a given brand is on the uDwing. Thus it is to be seen that Camel and Chcsterfidd gained in sales from t93a through z937, while since then these brands have becn in a moderate dmvn- trend, Since the middle of last sear, bow- e;er. both cigarettes are said io i~ reflect- ing die iurprovdneut m production as a whole, and a slight gain in saks for ~94n is expected. (See Fro,.luction Table.) Lucky Strike entered the slump side of die cycle m t9.~t and continued to loose bnsmess through tggS. Since then this brand has registered consistent and distinct gait>, with the greare~ per~emage of s~h.s increase indkated for la<: ~car. In- ;1<,hill(l] as 1940 marks the c:~d o~ tb]~ five-year upward movement, it will be in- leresfing to see if the current growth m this brand is ot sui~cient dralitv to mmc ag;ilost this precedent pre~iousiy set b'~ tbc ittdu~trv anti o)r~tirm¢ its .Glin in sales it', I<i,4 t. While R. l. Rcyn,~l<ts Tc;c, acco Con> pnl~X'~ (7;tlllcI <igarette nlav \~,Ci[ continuv to [cad the country ill to[al (itlipklt a~:lin last ~ear. Lucky SIrikc is width o',nccdcd ill rhc trade {¢} ilatc inade :}1c greatest l|ca(~u,'a~ in recent Itlon[hs. d~qd iS now t~r.'- }icvcd ro exceed :lnv oilier ci~aregte in ;n,;lIIh]}" [lri~Jticlion. Ill fact, :he turret: rate i~f sales is reputed b5 he around {,Sc]{}a)~}.ooo nn)nthlv ~]r C~c3se O) i{s pt'C xiuu~ all 6nle t×-:~k nl t93t. wilen thi, nlanufaclurt'r sold approx]nlatelv 4~,Sc~.- ooo,c~:o cigarettes• There is an added air of cxdtemcnt ;it llt Fiith A~enue. home .f American Tobacco. and the clerical torte has been expanded in keeping with lil~." improvement in bosirless. \Vhe~ ;'ou ask Mr• Hill about 6, howe~cr, tie wilt only tell ~.<~u, "Our brands are rolling bile u'e arc going io h't the tra(te do ~he talk- in~," addin~ with a chuckle. "'T,x~ much talk might bc un-Luckv!" The smug e,)mplacen< v fl~ar graced )be inner councils of ~he Inorc p.werful com- panies in file prc-dcprcssi<>n peri,xl was rudely shaken by Ihe entry ot the to- cent brands, v,-hcb ruse at >uch an alarm- ing rate to plague n~anufa~inrcrs of popu. lar-priced cigarettes in the trough of the depression. in order to lurer dle fttltJd ~f dhms and to prevent SllU~kers front bt'coln] n g wedded to low-priced braixds, the "Big. Four" companies cut their prices to the I)onc in 19~,:~ and sacrificed nearly ~22.- OO(),GR)O in profils for that vc,n" a]rlnt-. Another cardinal credo of Mr. t)uke's ' bnsincss success was "price cutting de- ..... ~ strovs the l)rcstige of a brand without in- : .... , creasing its market." F'ut tobacco men arc' among the world's greatest realists and. convinced die w-cent cigarctle,,,old thrive only CaII distrcs~ leaf tobacco prices ! :ultt therefore was ceononlJcalh• ut'~- J l sound, they cmiragt'onsly nlet till'; rising y menace by slad/ing the prices of lhdr brands to the lowest lexd ill history nn- der tt~e S:~ t~r thousand Federal tax on cig:lrettcs. \Vhh the to-comers' gr~iwtb Munteit aud total elgarette productiot~ . a.gain ~)n die increase, prices f,>r the ka,t- mg brands wt:re paitLlily re<toted m the foN<,wina ~car and irl:mLifacturcrs agaill rc~crtcd t<) expanding adveru~in,g appro- prLlti<)ns ~,) prom(lie their bci,incss. Tire lO-cent brands ;It one til'ne accotlnted for about 20 ptr Cell[ tlf [c~al cigarette pr+~ ducdon but. aldlOUgh font of rhc',e hiarlds tire backed b} nathmal,ad~e:!ismg mer Ihe radio f.r the tlr~t lilac last ~car. it is bctie~cd Ibt"* will account /or ]ess than ia ~×'r cent of the n)t;)l outpnt during that ]vri,,t. The American pnblic Acmamts qu:dib in its put, ha,e>. LTndcr rhc hnpac~ ~ff i0crc.~scd kcdcral. .lIid State taxation, the original l~,:ent : ~) brand~ arc rapidly losing ground. It has alwass been the contention o[ pr<~hlcers (if tbese brands that the ci311'~cmence OI~ ~ile "eve:n cc)il~" '~as an imi~st'ta~t (actor in ~hclr ,ale. But the increase in the FcdcLd Icv~ ,m cig:lrcttcs [as~ [ub: from 5: u~ S~..-'-~ i've th(msand is equivalent to a half-cent Wr pack. consequenth :hc.;¢ lgarcI:cs were" forced into a minlmtml rclall price ,~f l ~ cents per p.~ck. It; St.nc~ where <ld,.tirional le~ics <ire in /<>roe. 711c" price rmves fronl ~2 cent~ to t 4 cetl::~ ;,er pack. <h:cc ihmr rcmm:)l fr,m; the time re) u] bracket, these hramh have / .... ].,t their eiffel appeal u) the c~n,urnc: and these be:rods :ire now pr,,¢ressivdy ,,n d~e dedinc. ) Significanth I'~rmvn & WilIiamson T@ talced (:<)ntpanx. the largest factor in ehis hci(i, 1.ranched Wings. its leading prod- ' uct in this price bracket, on the market a .... ~c',v [ltl?nttt, .l~(I In lhc new 8g-tlli[]im~:tet" ~ize. t)riginalh, dlis cigarette w;w one of 'he lar<c~¢ ~c]lcrs among d~c ~,>ccn,: brands. And if .toy further evidence i~ needed a, to inst What is hapwnm¢ :o I!lc ,,r]~inal Io-c¢:11t arena. P. Lorlilard Company. rhc ,c'cond large*t manufac. rnrcr <~f these lower-priced cigarettes, has lust nladc its debut in the gs-miHimeter fiehi witil P, eechnut, offered to the trade in the same price chlss, and in direct com- pelitkm with t~m~'.'n 6: \Villiams(in's kVing~. Stcphanu Brqs.. a ,Drove hat PRINll]I5 INK \I~ )\'1111 'f • I~]B.RI '~}4y I+ltl ¢'% 1" #. • _,~ .
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I~Rt\TERS' iNK MttNIIII.'~ . II BRI ~[{'~ lq++ DO YOU REALTY UNDERSTAND WHAT THE MODERN PACKAGE DESIGNER IS, WHAT HE DOES, & WHY HE I$ ABLE TO CREATE ECONOMICAL, SALES-MAKING PACKA~ES~ lip l~ a dtllgl, rl! ir,+se~r~,h eXllel't Be|ore he touches pencil Io ~aper, he must know why people buy, why fhey peeler the clienl's product to competing products. He must study the reh~il out~ets through which the product is sold. He must know the dealers, thole problems, their preferences 2 II~' l+ • IlrOlluplion Inlln. He knows Oil avoiiabte moterlals, which materials will be mol.l economically effective in increcc,- ing profits, lie knows pockcglng mochlnery & production costs -+J9 ¢% "~- It /¢% .,<.+-._ .,.. ~ :~ + _
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• AI{ROtU is in the new fluores- cent ~hite n~n tublnl~ with pand ~opy Ul.minaled in Ihe ne~ fluore~eenl Irrr~-n Sun~r- N,'on. Ill The co*! tu you of *imilar ~tgn~ c*. b~ le** than 2 eenls • day t~r utlil--eom~re whh ~ny ,,Iher med;.m. • A pro~ed dealer friend-nmker. h.ti~iduall~ .t?hxl Io your Ile*'d~. ALLISON SIGN COMPANY, INC. MILWAUKEE, W|S(~ON$1N A MIGHTY LITTLE FELLER ,r~ - , WITLI A MIGHTY BIO PURSE ...... " ~"'"'" ' ............. ' :?L ~v'%t,'Y'~ ..... COMPANY ............... TI-I r. DO~Nr.R ........... IIPIIIi~rAflON WA~IT|| I~ Illf Cl,J(,10~J. Z~I! I~S~TII .t%'F*.~I'E N~¸ fORK '30-- been charged off to, ext'¢rieme. There was, for instance, the Palani brand, intro- dnced about eighteen years ago and re- tailing in the popular price bracket. After failing to get any appreciable distribution on the brand attd expendiug a consider- able sum on advertising amt merchandis- ing, the company took an initial year's loss of S2,~x~axX~ anti withdrew the ciga- rette flora the market. Scores of similar or even greaser losses threw their fleeting shadows across the industry, especially in the rapid-growing but precarious early development days of this business. The greatest individual success in recent years has been that of Philip Morris & Co., Ltd. h is the outstanding growth ~f this unit tb.at simuld dissipate the illu- sion that the offspring of the old "Tobacco Trust" are still collectively" in control o[ the nation's cigarette business. Paradoxi- ~;l[I],. many of the cigarettes that entered tJlc market under most ausplcJous cir- cumstances nc~er achics'ed profitable vol- ume. while other brands brought out trader far le.~.~ favorable conditions expe- rienced rapid anti consistent growth. Laund~ed in cite very depths of the dc- pressi~m and 1o the general cr, nsternation of the trade in general, when smoker:, through sheer ~ake of economy, were de- ,,erth:g their favorite brands and rolling tlacir own cigarettes, Philip Morris made its bid for container acceptance at per- baps the most trying time in history for the larger manufacturers. Neverlheless, the "Call for Philip Morris," since it first rcs~mnded through the trade in I93~, be- gan to immediately take on. Long known :ms d~e tx>tE, ,>f the industry, the found> ti,,n fur its success is largely attributed to rile cxceptiunal friendly relatious the late Reuben Ellis and L. B. McKitterick. for- mcr lYre~h]ents of the cnmpany, cnioved [t,l['tlll;2itOUt [he ~A'hC.ICsa]c :lnd retail end ~f the robac~i~ industry. This factor en- .lbled lhe m/lna,gemem lO secure excep- ti, malty favorable co-operation in the dis- :rlbution of the [)rand from zh¢ ',cry DLII',CI. a t)e[%~l]]:l] v~11IT/i~~ :]l,tr ].lr.~¢r com- p,mW.. ;hr,,uch the ,,ur3 !negritude of ~pcr,itiou~. 'x<:r~? itc',cr abie tO ob- \Vhb ,~ some~O~aI higher ~.ist price the largcl" sdling brand.. Philip \{orri~ gate a l{Itle Isetter proiqt margin to dealers than manufacturers ,~( the d~ree k':Mhlg uiqarcttc~. ,.vbich ,cghcd t() alVe lile bran~{ a "'break" hl wlnd~,\,. J,i~pLv,~ and bl ciitlrldcs* ~/tlcr 'a,,tts lll.ller]all) aided m i,.s distribution. PDIdUCitl~ ~'ss :~lan ~,,~8hilllO,c~'30 c[ga- :c::c~ I[i i,;~4, r[t!s colr~pany roiled c~ut k]o'.e to 12,~,O0,OI~),Q(R) units last ~car. The &~ihr ~aluc I)f its ~ales in I934 was ,,nl~ 5~.,.~),7t)7: sales in t940 du,uld exceed S'~5,~x,x~x Almost equally as great a success has been achieved in recent years by Brown & Witliamson To- bacc~ ('umpany. With an important sol umc of business in b.th, the lx~pular- ~t r priced and m-cent fields, this unit I~as increased its total clgareIte vt)Ium¢ from. I O,5(X),OOO,OO4) to aboot i7,5C.ua~:~)a ~x~ during the last six years. Despite the collective growth in the :,ales of the large companies, cigareue c,,n- sumption is expanding at an ever, more rapid rate, and there is abundant e~i- ....... dence the industry still eaters a fair corn peddve field anti no favors for anyone. The Federal Trade Commisfion, in art in~estlgatlon of the industry a few year~ ago, found that the original "Big-F~ur" : companies accounted for 84 per cent of the nadon's total cigarette output in lq:,4, while last year these units accounted far ,ml}. 75 }x:.r cent of the total prc4h~ctkm. Thus, ~hiie the collective busines~ of these particular companies is still greater t~Ma) than it wa~ six years ago, their con- ;? sulidalcd grmvd/ has 114)I been as great a:. the indu~lr~.. During this ilxter~:d ,,he of these inanufacturcrs has slipped t-,i,ni~ pla~.¢ ill importaiacc as a cigarette pr~Ju cer. while tw. lesser units have c~b~,wcd ~]lc'i: way up to :ourrh and fifth t}iacc~, r<,t,c,.ti~r]v. .... .knl,mg d~c sm;dlcr companies promi- nent in lhc q~ciahy cigarette ficM and [arAcly responsible for the growing com. petition from the lesser brands are Axton- Fid;er 'l'ob;lvc. (7omtlan',*, Srephano ~4re~s, : l.arus a Br.s, Co,. Rigagqo Tobacc~ Corn- pare. Penn T,,bacco C:,mp ny and Ben- scm & Hedge~. Manufacturing a rose- dptx:d ci.4ar~ttc &'signed for women ~" ~m,,kcrs, Ihe l,lW.r cumpany also has ret- c'r:d ~thcr mincw he,rods, and manuiac- 2 Iklrekt a[)OLl[ 22~,fox~O,OA~] e]g;trettr~ [ast ',ear ~omparcd to [4o,cxxo,Ooo in I93,L A tc'~ }cars ago, A xnm.Fisher, originator of d~c Mentholated cigarette, was respon- dble h,r 9~) per cent ,:,f the total output in ellis tic]J, but today thi~ manufacturer hal ~}1lI\ aiMJkU 1{) [x:r cct'..t r,f that hits{hess. I'hu, ~t '~ ill hc ,con d~c compc~m'.c vast, tie,n ,)[ cigarette tnanu[acturcrs, gon~rary n, qencr:fl ,,pinion. is constantly changing ,itzd ~ilC (i)rtunes I)f e;en the more pov.'er. ful units in this industry are readily sus. cepnb]c to any ~uddcn h,ss ot smokers' fa~.r t,~r d~cir brmtt~ Ti~c habitual ,m.ker, tlcJ~.'cuer, buys bran,]~ rall~er titan cigarettes and it is the ad~cr:tsing :hat has built up this prestige in :he cnnsumerd {'~e~ for a partclular product -- prm. idc,[ ab, vavs tbat tira[ pr/x{tl<t .)tier,, <atisfactor~. qualh~. -- d~at is rcsponqble for tt~e enxiable rec~rd of carlllnRs of tile oider com- i~:1111<'~. \\i:h ,m cremated 9¢~3,0~m retail uudet~ in flit L'mted States for cigarettes, the "'t~i*z-Three'" tobacco contpanies, each era, plov roughly 8~x~ o L~)>O ~alesmen to set- :ice and extent] their list of custonlers. Ad'.ertising through the various media. howe~er, will undoubtedly continue ro pie~, !lie uulstanding role ill cigarette p[olil:)[ It)IL IRI\I}R- INK M(1',,II11'1. iH4RI'kR~ iult fq T R t.~ 1 ~"~ q q DA a r4
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20,.~1 .'.,b C,";.;5' :<( FE!ci<U.'<~Y i9', i :i 5 ii LL,:IIIil ~ BELVEO£~ merit CORONA CORON~ COrOnA LARGA FAWCy TALE PAWATEL~ eE~FECTO O£~=-TASSE FROM THE GRAND DUKES TO YOU Two wars have made vintage cigars, once monopolized by Russia, then by Britain, available to us. This tells how they are made; how to choose, preserve, and smoke them E"'"th.~ ,9_,, v,~:,~ ~.,,,h by ASHLEY CHANTER inileritcd the j,,y of tile perfect licam arein favor of the g,~mh Havana crq~. American gift policy ,ff ~T¢~!Ij{)H.~)OU attributed t:} Mr Bcrle. They ri~hdv ~,l,,' :~e arc "bu)lng time." We are :~}l ;marc. after the militar'f blitzkriegs in Europe, that ,1 if.u,. ,] nltl[l:}!, ,ir a ~c/i,(~ll gaiilcl! I'or [-ngt;lmt HILl~, q:!'~¢" u~ .2c~lCr;t;i,ll]'; I){ allL;!!islled ,KTit{cc ;H~i t.'Ar ridden pm cru.. h is .tct!eral[y accepn:d dmt ~mr country is in !ittk: ~'t.,t .,f d~c pr,)duct~ of our s.ulhcrn i~cighh(~rs ClUb and Peru ha'~e copper: .\rgcntin,: }ta'~ heel. a.nd m ,.n. ~%'¢ .Ire a ~cif-~ul~lclent n.mon on most of d~-,c c~mt~. and ~ur C, m~rc~,smco ~,.,}uhi proiiab',v prefer resigning to al}owing rcas,)aabie entry of dtc~e ~ommodit-c< He, v,- forrunale, then. that the l:,ureha.e {~f cigars, the pro,du.t of that young and ~turdv free republic of this I~cmispi~¢re. Cuba, should he open to the patriotic sup- port of the Cnited States, Be{ore the War of 19!A Russia monop~lized fl:e Best cigars on the Havana market. With the disappcaramc uf the Russian Grand Dukes, who represenml the weald~ of their country, England for a quarter-ccntuO" For rra-ons ,d exdmn:te. England has rcccnt[s re- strktcd the imp~,ttalio=l ot } {:lvz~na cigar~. >o Ihat ~oday, sC;elUcC!I ntont}P, ;dtcr lJle ,mrl)reak of the secorld \V~q'[,[ '&" It. ,*tic o altltv'. [~ .tlllc [,}r Ihc I~,t time tO ~ar- >c', :he n>',>t dis.rmii;:ati{lg {i~ar qrnakcr aud, qmul. [.IlW~K]']:. 7~) rcl~dt'r lhe ~/c:ucst %I'~IkC h-i T]~{' F,,su-rcrs .t the i,>; P:m-Amcrican C{m({'a-ncc held a~ Havana ~hrotlgh the purchase ,d :his ~.mm.ditv from one of ;nit sHt~i~crI1 n,.i~hb,)r'< "'bult~k¢ :he best alld i~c a parrMric American." When ',~)u follow the dcvebpment of the cigar, from the tobacc{~ ;qant t~ the tinishM Belinda, Larrafiaga, or Gher. k is ,urprismg h,~w ~,~milar it is r,~ the story of wine a* pro.coted [){. the estates ~ff I.a£te or R,)man,~e- Conti and their aristocratic brethren. It takes from three to @,'e )ears to produc,e a good c{gar. The actual manip-. ulati<: !n the factory is in reality bur a minor process in a long line ~,f operauons and takes ~miv at~out four weeka: ;he prcparalhm -f ~he leaf takes ~ears. The best leaf is grown (C,mtint..d on page 67) u, fqT:,',fOl 03504.32
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though uos',,ada~s it is customary to have a haudsomc bronzed European on hand to help you up. Skis, as every one knows, are thin toboggans which are clamped to the ftx~t like runners, with tile object of transforming a human being as nearly as possible into a sled. The art of skiing is simply doing what a sled wouhl do under the same cir- cumstances. As it happened, I did all my early skiing on snow, but novices, and those who have a horror of the outdoors, have contrived any number of all-climate substitutes ~hZh havc pros'ed frighteningly effective. A parh~r ski run can be readily assembled by nailing together several dozen t4ay- ground slides, and gluing on cornflakes. Throe die-hards who complain that the ersatz course is unsporting should remember that the ahsence nf the frost-bite hazard is com- pensated for by splinters, which can be equally pahfful. Althou~:h the fundamental principk" .ff skiing "\Valk softl') ant carry a big stick" ha~ rein:ruled uuaItered through the years, the ski costume has undergone many a .~chnee-change. Formerly, it was considered suff~dcnt just to "bundle up g~*.t," a suggestion which nosy would be laughed to ~corn by any *chlerniel (expert). First. and most important, is the hat, or crash-helmet, ot shock-repellent metal alloy, with hermetically scaled high crown, in which is carried broth and brandy. The hat i, ~++rn attadled ta the wrist b', a stout cord for reason, which aught m ]w obQous. Your under~ear is. i}f olurse, up tO you; lIlillC i~ all made b)" nuns. with my name and the address of imf next- of-kin hand-lettered '.,,'here practical. Tromcrs nr knkker- bq×kers are not de r:gueur, but it is desirable to sport one nr the other: people expect them. ,rod. besides+ a frozen waist is no fun. It is also c,maidcrcd good form m wear (rQTn ten to >ix['. s~xeatcrs so {hat xotlr COlllpanieH/~, can while away a tedious sch,,s, by guessing how n],tny yoll have on. Most resorts have a "Putl-O~er Pool." based ,m the Iotal number of ~weatcrs w++rn dl~r{t+~2 the el:iv. H~,v¢+ ever+ Fatima 5n~rmiwcthrr--kr~,,~:~ a, The Kan,Ld~:~r Kid. and the proprietress ~f the ,a ;dc~I .pen d,.'om ill dw T}ro[ -ne~er wore ansthing bur Ihe ch~s~ihcd ,ecti.m ,£ !he Sundav Time. and a haher. Fatima ',+a+ ~]lo~ed d,a..n a ~re~asse at Se.egrube by a chamois >he had been tr,,imz to teach to chri~tiama. Fatima ,,va~ rerric',ed ,ailh ton..:s ti~rce weeks later, and ~as finally tha,.;ud out the f.~lIo~mg September. She ~a~ tt taught her a g,~c~t lesson, !mr--not to be cane or anxthmg her >~,,[e > ,till stiff, and ht'r .+ne'nander£er¢~)te lJvg¢*t ha', c nosy: bccn the same .... Ncarl~ e'.er},)ne ~cars .h,~c~ bc~.tn.e it ~, ditiicult n+ keep skis un ~ithout them. and i++r Th.~c 3.ut+~ i,ldie~ among mv readers who Mlatdl e'.er,, <+pp~lrtunit} el) show off ~heir c.lurful pcdkurcs. [ d~ouid like n, ',v~ru d~cm :hat r~-nail [x~lish frequcnt[~ explodes when cxl,.,.ed t. *ki wax. The re~son for !his i~ unknmvn: [~t it ,ufit,:t" t- remember ~hat it's better with }our l>ix)t~ ,~n. a*Id d,ln't you forget it. Surdy none .( you ~iilv chicks wants to clatter through life on w.u~lcn toes. which are not only expensive but are alwass aetung ,~ut (~f order. Inciden- tally, for those who do not like leather next to the skin, socks are suggested. They should be about the same size as your hsx. You can probably get your grandmother to knft you some. ff she won't, MM Saks, Bonwit Teller, Abercrombie & Fitch, and Brooks Brothers all have grand- mothers who v-ilh It is in the jacket that the skier best expresses his own personality--anything goes. I have a walrus-hide beaut},, bound in bison, with accordion pleats that really play, and anIIlracite buttons which may be used for fuel if the neces- sit~ d~ould arise, and don't think it won't. My second-bc~t i~ ~_-velet lace, faithfully copied from a cheese, and tined witl~ Thirty-Four Favorite Games, including Camelot and bean hags. It is not generally known that each eyelet in the intricate pauern is actually a troy lens regulated by a;1 apparatus oscr In\ heart so that I can snap a picture shnp[} h} taking a deep breath. The mechanism is so sen.ttt~e that when, alter a hard run, I discovered 1 had lost my purse en route anti gasped in dismay, I inad- vertently umk four thousand action pictures of a tad|ca' room in the White Mountains. Lulu Alabaster favors a lafm cape. but I do not advise this for cross-country work. Although showy, it can be extremely uncomfortable to ha~c the wind aml the ram m y.ur hare. Anyway, Lulu i~ no fashkm arbiter, l.ast summer ~hc didn't get a single nc,a frock }use had dip covers made. Last but not least is Your rucksack, which should con- tain snow ,4{~gglcs. face cream, fr~)t grease, first-aid kit. maps. conlpA~s, tachometer, mittens, extra skis, cohl cuts and potato salad, deeping hag, radio, rockets, oodles of rope, ice ax, cram[~ns, seal ~kin~, dean handkerchief, ski wax. oxygen tank. dry sh~cs, and extreme unction. For an o~ernight tour ~ot. will w;mt to supplement tht~ ~i~]l a inanrcss case (a power-run pulper should he brought along to grind up the pine boughs used for ~tut~- ing +. a (anc~,-dress costunw--not t<x) fussy--if you plan n} be g,me m{}re than one night, atld rff o)ursc f~x:..l and ,',r[;Lk dL~.~.ahs a \,,clconlc addlHon. Do tirol ma~c ~/1¢ ~t,r~ :.At :i :akin.: along a camas bathtub, It i~ aimoat hnpos .tb;c to ;'cz ]lot water, so why not Iuke a leaf out u[ the h~*& ,~( our four.(+oted frWnd, the h.r~c, and contclu u~ur~df with roltina m'er m sand. ~hkh i. much easier m ~a+:, ! t)h. yes. and be ~urc to let tile [,wa] 5~{~?t }~,ert~ard get ,: .2,~d whirt of you before you set out. Of course life at a winter resort is not all b,rkn~rc: and sk;i.~.f. Sometim,:s the wind is or+rag. ~r ~here i~ a th;lu, and :he chief actiGty is huddline ar, ltnld ti'te iar aud m~k- m:z .i~ di~s at the txcather, t)r+ a> ~c uwd to ~a~ at St. Ant<m, 'Ain't we got /okaY'" [f ~,~u hat,pc:~ n. he ~taving at Sun Valley--Where Nature "l%,~k the Bit Between Her "I"c~:h--~nu can airways go for a dip in the hot spring+. :h,,~gi~ ~ou run the risk af being ducked by a staff prac- ~tcal ioker from the Selznick or Zannck entourage. Nat- orally, after a fortnight of buttered rum and anecdote~ and the barflies' view of world air'airs time hangs pretty heavy. Whenever anyone begins to prattle of the heady excitement and tangy grx)dne~s (Continued on pa,¢e g'¢i 45 R T.'KO "I03504.3 Ca
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./-,,. 0
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1 ,.~ 0 1 0 3 5;04.4- 0
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& $, Febr uat'z, }941 we< of Havana, in the Vue.ha Ahaio Iowhads of Pinar del R;o Provth¢¢. Of the 250,000 bM¢* prod~od axttlually, only one-teath = of the flmtl qu.ahty. LJk© vintage wlne, t~A~agco is $'ab~¢:ct lc the whims of the we~th~, the leaf varying in quality tram y¢Ir tO year. It is aim) true, as ot ~ine, that the be.t leaf will grow on a few actet of L~nd, while juit acro~t the road only the usel~s ]orro leaf will grow. The plants need a balance of mois- ture and quatir/ of air as wall as of vail The best land is 6hera miles back from the salt Air of the sea, The av. e3age humidity of 80 per cent in Cuba keeps the tobacco leaf supple and moist. A fine crop may ix damaged or de- s~ro).ed after the harv~r d there il r~o much mOll~ufe while h i$ curing. Again, as with wine, the trop greatly depends on showers toward the end of the gro~ing period, and variations of weather are noted with gee'at care. American growers introduced the pres. em method of cutting the lower leave* first and then allotting the upper ones m ripen. They thus obtain more t~- [,acco and a~oid green leaves, On a dry day the leaves are cut a,d hung up in ~eari/ated lheds. Care fully examined from day to day they are withdrawn when in the p*ope,r condition. Ahcr ~rting for qualltv. the tobacco is tied m bundle, baled m palm leases, and stored in factory ~auhs protected from dust and ex- treme aLenospher{c changes. When the leaf is at last pron~unco:i ripe, the bundles are taken out. separated. sprayed with clean ~ter, ~hen left on cacki to dr)- in the dark The wrappers are non ~e!ected and ~he filler mbacco il packed in barrel~ toose~¢, so that the air may circulate, and lef~ until the ~eaves become of a umform rich~e<s. 1-he ~srappers are lhose leave', which are pc:feet in grain, color, gleJ~s, and elas:ic~tv THZlIg a~e three general I'¢~es of cigars: madurc~ ride, or dark; col ,wide,, or red: and ~;]aro, or light. The List is an ai~omina:km and ix unfof :unateiy pre'.'aibn.:'~ m demand in '~meriea Mathlm and coTorathl burn more eventv and c~rv~m !~ nlcatine ~nd ammoma ,h,,~ :!ar:~ lhk is ;nose !tom the ,~ra~er :~e qren~:th fr~ :be filler< h J's' ',:'e ammonia content ,x hi~h determine~ ,~:cernes~. T',e :or'arm ~'m:~ u",en zrc,,tln~ al¢l/ inic~ted t~lt!, ~:t~ nlorc ustla]]v ,a ex} x~orzr~ L':lle*~ the~e are col ?e:n. ]'he~ ~i~o de<,~i* -:~ ,..hath may hatch our and &~tror .he ¢iear la~¢r dlt~on~: that i~ ~-l!are,i ,r k~pt 'o¢l,,w dS" The prin,:i?, , :.~1 md ~ctlpai"m :d beede~ ~ ,Jr:];::-" hoLe~ m ~:gars. :~akinlt them ufltn',okaL'~¢, Right up '~ !he time ot smoking. :umldh~ ~on~inu~ r<~ 7lay a m0~t im- f',r~ant r,',le. The English taste has ,ten to ha~e a cigar dry enough to crackle when ~querzed b~tween the finger!t In Cuha they conslder this wrong because ~t means that the c{gar is on the dusty side and that a strong first draw may hrmg tobacco dult with I¢. The ideal ¢ondd/on *¢o-i~ ¢O lie that indicated t~hert the cigar presents de'idle re*.isiance if squee-zrd bali #ve:s no distinct crackle. One rea~n tot the superiority of au. thende Havana ci~aet is that they are hand r,dled '.hroughout. Fit~t comet the blender, who selects the wrappers and fillers for the quaatiL~ and qualit~ of the brand and size to be made. Th¢l~ the tobaqnero, hating mo{tdttted d~ wrapper leaf and i'lmu~'id the rr~ia stem. cuts the leaf down the middle into two wrappers, ~ upper 0¢ THE GRAND DUKES TO YOU CONTINUED FROM PAGE 46 m~ooth side ,,f tl~e ~rapper must ap follo~ the ideal panern, and our mar. pear on the outside of the cigar. To keep die side vems from c*osslng o.e another and making a rough surface, half the cigarl ate rolled to the right, the other half to the left. Another tea- son why H~vana cigars are so far su- perior to all others is that no hinder is ever uied~imply filler and wrapger. After the cigars are made, the'/ are sete<ted as to exact color. This requlres great experien<e and is done hy highl~ paid specialh~, They are graded as fM- Iowi froro light to dark: claro, eole~ redo, colorado clato, colorado maduro, maduro oscuro, and negro. Then they are packed in bundles and boxes a¢. cording to their final dc,tinadnm (gillgs ~)r band~ ,m cigars nlean no(h- ing and are optional,} Tho~e packed in boxes of t~enty.fiv¢ for tbe American market are never vJ good A~ those in b~xes containing t~o r~und bund[~ of fi(ty clgarl that go to l~gland Cigar~ breathe and must ha~e air, mid they should no~ be pressed ou: c4 dq,e At~,tosr as g~'*J cigars are made iil Trenton, Ne~ Jer~y as are ob- tained direct fr6m Havana, Tiffs it a~ it should he, for Henry Clay and ~,ck v. Company, Ltd., have made the l.i Corona and other clgar~ Jot o~e: nm~ IT-tWo yeats, h is not their fault that the greater d~nAnd here is for die b*s dc~-ahic ctaro products. Their ~mna gd~elon Superha, Not. 65, 75~ and 85, are AS ~ne cigars as one could wish foe hi wexght th~e should rate a* tile n,e dium cigar; af their other cigars, lhc Henry Clay is the lighte~/ anA the VilL~ y Pillar the heaviest. The flenr,. Clays. made in l'rent0n and marketed here, are condde~ed tc~lay ~o be finer ~han the hid produc~ Iron Cuba One reason given for this is that there is today less d~nand for the~e cigars and they have b~t s given more time in aging. Cigars, like friends and wine. grow t~v~re precious ~ith age. Wine ages and de~e[ops be~ter in 14r~e (wand~/cs. ~uch as mag~lums, than )n smaller ~tllef +W half bottles. ~) <%bo ~,i*h clears: ~l J* best ~hat they [--e kepi together in large numr~er~ ,,~ dxat tiler can irnpart t,~ r;/~h ,)thee :heir iroma and strength, i do not approve oi the practice ~lt ~,m~e cigar mnaker~ ~ho are ~,tLl~ packaging cigars dm:l~ hi me~ai contamer~, ~or each cigar ha~ only itseh to draw on ~r life and ~]e. ~eioenlenl On the merit ~ide. however, ~tl~t :or~tamers ,ire cm~e.ient and do protect against hreakace .rod keep c~ ~rs .~t a constant ~rll ,# humid~r~ ~,\ith in£crv,r imi~atkem~ Havana urappers surround slrlps of tobacco and ;,[nder pressed '~ithin the c~lin dricai ci~Zar toni. There are iew ~.met icon.made Havana.filler cigars the: ket has for generations been discoura& log to the Havana manufacturers. As stated ix[ore, we are d~sposed to tarot cigat~ ss ith light wrappers because mis- takenly we think this means that the dgar is mature and that a dark wrap. per represents a grmm cigar. Just the opposh¢ is Uue. A properly aged mgar, say from six to eight year* old, with a gtx)d *imalp: wrappeq should he ms. duro or colorado. Again--horror of hormrs!--we are paruat to cigar~ wrapped in cellophane. The only advan~ge is to prevent thek hreaklng when pocketed. Oehetw~e, it meted rner~xages the bret~dthg of heard and sul~oeat~ the cigars in the box by keeping them from strengthen log each other through breathing. Cdlephane also has an absorl~tnt quaL ktx and takes from the color and aroma nt a cigar. You can see this hy exanl- ining the cei!ophane wrapper that has been aronnd a cigar for a period of ~e'.eral months fn generaL the only cigars packed in ceH%41ane m Cuba ate the ordinary Bebedere and Per- eecto sizes. Thee 3re ,aalv f.r the ~rneric~rl marken If i.u uanr other d2es wrapped in cellophane, lhev wdl d~arge you about 58 a hundred. The Usual humidors purchased at iobacconisL% ~ith felt pads to main- tain proper humidity, are desirable only if you are careful not to soak Ihe felt; when leO wet. it c~u~e~ the cigar m sweat and then ferment, lnsil3g [[aqrance that cannot be tc.'.ored 1i ,,:,u are on board a 3ache or thing near :he sea, an ,~Id.fa~hioned Mascm pre ,erve iar with a screw top is hard 3o heat. If the {at is kept air~igh< the cigars wiII usua!',v remain m d,e same sta~e ~s when ~ou first put them m ~L hm~e~er, the iar is mb}ect u~ rapid chan~g~ tff temperature, it may l~seat and make *he g:¢ars u~ humid. When ',,,u have the ~f,ac-t use a large Cuban ~edar boX inside a llgtu metal one, k!rhough it is ',ell to keep c~ars in ::,k! a[aee, ,:::n ,,s a cc!!ar ,.~h a .oncrete flc~r r in <,/d /,,.b,,,ned :c¢ ,x. : i~ ic~]n::e qd r,, ~eep :hrm :: in =bc~r:c ;3 =~* <dry c,,Ld~ =:~r~g. ri, r unless. ~s ,uh ~eget.ll,h,< they :re 7tottered :r~m dehydration C~gars ~te very senq, ¢ They tee[ an~ <nan=e hi '.l~.2:d;T' and temoera~ure. When cigars ::a'.~ ,nn the ,ca a~:d are exFcsed :o ,t:,rr*:le china:TO end{ qonL *he~ ,:,,<,<:=<, ex#rcm¢ ch~ge :hrcugh s,&r~r,::=, .rod it take* nine and care to ::~e :{lenl rec{,~er. They .h<,u[d ~e {c~ r=~t t,,r ~3 Lea~t 1 vea~ met ~uch a !,,U:-e~ i'!'¢ :,~t -,a., :~ -,ke a Large qllatl :m *f ¢lz:lr~ n ~ .ca ',,,:r~,e ~ 'o 'a3ap them :,,<., n 5blnkel, i~cv AI t~l~ty. ~atfiltt*|RI #ell file NIN. T.to¢l "m.m~ttllV" ~.t t~ ~ ~ I. ~o.~ file ~¢~h ~llet. Fe~. t~.z~ ~* P,a,¢~w*w~ ab,,orh [he o~oc affd flavor o~ any foreign ¢/¢nlem~, which is why the oM-fathioned method of packing them in tea i, defi.hely bad. r you Possibly ram ~ ;~s ~n rx I ¢ellent Id~ to buy )-our :.uppiy o[ cigars a year ~r t~ betor¢ poll smoke them, irate them svlth i rep- utable tobacconist who know~ the rxdta. ~ draw them. as you need the.J'n, i bolt it a time, The better duL~_. such ai the Racquet ~ "iem~, Un:.-a. and ~ntsersl~', take great pr~dc t~ their cigar ¢ollnt~, 1-hcy insest thou- ands of dollars in the best v(ntag~ years. ~uch as 197,0 and 1934. laying thera down for the ~re d¢tigbt of thdr ~lxr~, In N~w York, d po~ do no~ lxlong to a club that has an adequa e cigar counter, there are cooac. conists ~ho fc~]]~w the ~mc .,r,x-edure. L B P, us~eli. 23 We~l 57tb Street. Mbl C~,m~nv, Inc_ ~} Park Avenue~ and the Hotcl St. Regis 10oa¢co sho~ are my three favontet in New Yurk City. In New England S. S. P~er:~ C~mpany na~¢ a~ forge and pr~:~rlv kept a selection as any. and ~xake • practice nf sh~pp{ftg oy mall in :be manner oe~t suited to ensure their hea[thy arrival Keep yam home supply in a e[ain cedar c.mc (a mgar box. ~/th all laix!* removed, is i~rfo=t'l. Place the box. if vou tia~¢ t~o cellar o¢ kd~ox, a~ the bottum ,d the closet of l~tr ixdrootia. Th/~ ,~ apt m u¢ the co.levi and bose vrnhlatrd r~m In the apartm¢.nt, l~ you ~,se i New York City, howev~, wlltre :]lere are four sealoea evt#r v,~env,'.t,mr 1~6urs. you must be ~¢t- pare, ,r d,.appmmment on nora.cent. All ~ou c.,n do n your be~t THe art ,~t smoking a ogar ti ~ l~o, Jttant ff your min~l {$ .q~! o~l %[~ILkKI[I~ d:nt't sml~k~ a o~ar. fnr it '~d[ 2~*, kit or bum at the side a~,d ~{,e you hide p~ca~ut¢ %Vhen [l~htln¢ /4. h~hl lhe matcil a hal/ m.h "- -- the end .~ *t.~t ,*,e :bme . "~ ,,,.r -ur~ it~e :,z~ ro a ~ancc:. A .'h:., za~ c,car surl,rs in ~nr. '<,,,, ~,,u d,ould smoke slo~[v, am use ut t e =me *I ~ bcuer ::at you, no. Re:~e::lber tl~at a =teen m" m,~,: ~,r ,. more harmlu~ Ta=~ a ,ea~ ,no,. c:~'," ,mc.~ No claar ~ho~d Sll~,t~cli "'" lie billet end ~ ~aLf- st~r ~car ~ho~ld not pc reu.:nte6. A ~:n~r~er ,vt~ rcngnts a ~gar ~m;L~ mere: i ..... ~,an ha ~t,t,ld ~=om :=~ ,rdma-v ..- l,-kcs Tbe t~me ,A ,r,e day dclerm/n-~ the 2herr ::~:ar alter ~uneh S z, .,~ ~m:mr:anr For ~:~el tm~},ct i -a~g¢~t one oi ih¢ :o~[ow- n~: 'l c [le~ll Cnrona. Corona Cbi:a, ~IFI'~] 14(~ "eder¢, or :he a0~roxx.~..are ~qnl~/Le~l,. F,,r otter runner ~hen pr~,cu :,,r :n,e. ,he HAt Co:on= [I.;lquct alh " !e ~lel]U ta~¢ ~e ~n ex~¢ ict~ ~rt .m,,kc. For aner dmneL Pallor Ta[~. [>~lma. ano C~rolI,l ~fe cI~t~[l([t lic ao~ recommend m~ tmcx a =lgar, ~uch a~ the Coror~ I..~rca, toe ] I~nd Ihat ~oo ,~rmch ~'t~l~¢ laken into the mout~ I! o~ t~.e ap~ ,a satiate, which reduces the re~ p]easare of the smoker YoLir .J~a¢. c,,m~t d~outd t~ co~su[te6 ~ :o ~¢ ~llake ot ct~ar ~o b~- ehot~tl. ]~e ¢~nlnlunlo~ of ta~artd of alter droner during the ¢o~r~t ~ I.~ leisurely enlovmenl of a go:g( ~g~ N ot zreae ~oclal b~nefit, '~ ~ I eerlam indetinable li.k I~'wee~ mg and ~hiknophy," Mlrrflr/ error. and Thackera~r said. "The cigar bate- m.mz~ sc~¢ty." 67
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TQwn & Country lbe 5il, er Te~, ~,,,j ('~,iL,,, ~er~ic,. ilJustr:,ted i- <fu~ti,,u~ ,,} Iml, (;,',,~e~' I nri,.:'ina[. ~hi~h re[l,',l d~,' ~d ....... ~ilh. P,,,d 1 .......... .i. PETER GUILLE I. I M I T E D Old D'~td, ~l,,e;, .... <. ~ ",.,. _ _ ' ' /u,~oJ, lckon..s IETll GUItLE, lIES. fotmlrt# of CIICNTON & co,tic, l~"r[R~,'.XillO.'%.4L /il.ItBl~,C - I{OCKEFEI.LI;R CEhTER 630 FIFTII AVENUE, NEW YORK TO FILE I..,\DIES I t i ,/. R T,.~O I 035044.2
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41 • , ] .[7-. i • & What Arc Cigarette Prospects tbr "~11:) (;. Rf}BER'I DI"~tlILL 0350~44
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---43 BILLIONS --41 BISONS i tlL/t Arc (;i~arcttc Prosl)ccts C. IH)HKICI DU~'IIILI t})r ~.11 ? i+. . ~T {O1 0350,~4.5
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THE AMERICAN TOBACCO COMPANY ~FEWweeks ago, executives of twenty-th~ree hundred business houses in many widely diversified fields of "industry found in their mail a most un- usual, handsome, and intenseIv interesting booklet. Botdh" dis- played upon its cover [s tile slogan, "Sold American," famil- iarized in the tobacco attctioneer's chant nn the ttit Parade and other of the con:pany's nati(m-x~ ide broad- casts. In smaller type, cl,~eh lettered acro_~s all four cover pages, are the names ,,f ~cores upon -cores of manufacturers, a cross scot[on of American industry at its best. \Vithin its pages in text a:~,[ picture, is one of the most unique and effective statements of sound public and trade relations ialaginable. It is the message of The American Tobacco Cc,:vpany's P'.,rchasing Department to its suppliers. Over the sty-nature of Richard I. Bovlan. who, in addition to being the Director of'Purci~ases, is also Secretary of the company and a member of its Board of Direciors, is this message: "TO OUR SUPPLIERS "Eus[nes~, cc/,:m:~rce, trade--cali ir- wha[ .,.:: ',vi',l--the everyday exd:an~e of goods and services create: 47!t2 O( tile stronge-~t, and certainly one oi the most truly uni',ersaI bonds among the peoples of the world. "For none oi u, lives solely by hi, own toil; we MI help mutuath" to provide each other's livelihood. Whatever we as individuals add to the sum of the world's stock of goods and services, it is a product not nterely of our own hands and minds, but also of the hands and minds of ott'ers. "If this is true of the individual, it applies with even greater force to the corporation in which a number of people combine their resources, capacities and energies, enIarge the scope of their service and share the compensation earned by their united efforts. "So it is with our business--The American Tobacco Com- pan x-. Like any one of a thousand other business concerns, The Purchasinq Department of The we are just one link in the chain o[ American industry. The service we American Tobacco Company is prob- render is not the product of our own ably unique in havinq its own depart- thought, labor m~d skill alone--it is the result of our efforts joined with mental seal--m1 expression of official those oi thousands oI~ other workers recognition of l.he importance of the in a!l kinds of occupations, through- out the United States and its posses ..... purchasinq function, sions and in many foreign countries :::::: as ,a e!l. "The job of The American Tobacco Company is to select, analyze, and purchase tobaccos, to process and manufacture them into products of the highest quality possible, to make the merits of those products known, and to see to it that they are readily available to the consumer in pleasing and c,snvcnient form. "The American TobaccL, Company depends upon the farmer for its supply of tobacco. I-Ie, in turn, looks to us to provide a market for his crop, converting it from raw material into pleasant and desirable articles of commerce. "The American Tobacco Company relies upon you for the great variety of goods and services it must llave in per- forming these functions oi manufacture and distributi,;n. In turn, the orders we place with you- be they large or small-- play a role in the relative prosperity of your business. "There are man5' ways in which we work together to our mutual benefit. "In every plant and office of our Company you wiIl ,find this sign prominently displayed: 'Quality of Product is Essential to Co*,tinuing Success.' "That is our creed, put into words bS" Mr. George \V. Hill, President oi this Company. \Ve give practical expression to it by offering the consumer a warranty. One of the reasons why we can give that warranty to the public is because we know your first concern is to maintain high standards in your own operations, to improve constantly the quality of the products we obtain from you. "On the other hand, our Research Laboratory--the largest and most modernly equipped research organization in the world devoted exclusively to the study of tobacco--subjects ........ to rigorous tests the cigarette paper, foil, cellophane, ad- heslves, cartons, bags, inks, and other commodities with whlc.h you supply us. \Ve make these tests constantly to safeguard and improve the quality of our own products for the pro- tection of the consumer. In doing so, we heIp you to Im- prove the quality of your product, discover potential econo- mies, and raise standards in your own partict, Iar fields. .MARCH, 1941 PURC~&SING Magazine 45 r:q0l 0350446
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RICHARD J. BOYLAN Secretary and Director of Purchases Mr. Boylan joined The American Tobacco Company organization in 1901 as an office boy, and later was advanced to clerk in its Leqaf Department. In the reorqanization of 1911, he became Chief Clerk in the office of the Secretary, and five years later was elected Assistant Secretary of the Corporation. In 1926 he was appointed Director of Purchases, headinq the Department which he has guided tot the post tifteen years. Mr. Boylan was elected Secretary of the Company in lC28 and became a member of its Board of Directors the folfowinq year. He is also a director and corporate officer of several of its subsidiary companies. "The Purchasing Department of The American Tobaco* Company and its subsidiaries expends over $18,000,000.00 yearly in purcha_,es oi commodities and services, entirely apart from its purchases oi tobacco, and its expenditures in con- nection with manufacturing and other operations. "Our buying orders are placed with more than 2,300 sup- pliers located in every State oi the Union, and in man)" foreign countries, and provide employment for thousands oi people in ahnost every type: of ,)ccupation, all over the world. "These purchases inchade a!,proxhnatcl_v 1.I00 different item5 --basic materials extracted from the earth, the products of the soil. manufactures of an infinite variety. The more than25,000 individual buying orders we place annually range in amount from nominal sums to hundreds L~f thouaands (~f dollars eacil. "In this message u e .<}'.all attempt to set forth a few interest- ing facts about the variety and extent of the purchases we make from you. \\e bv.li~,,c they will brh~ to you, as they do to us, a renewed appreciation ~f the important 1,aFt ).~ll play in helping us to serve the public. "\Ve enjoy and xauc the fine busines~ relation-hil,~ with y<m which have gro~n ~,ut ,~f ,,ur :nutuality of interestl \Vc ;~ant to continue to make those reiation>hips plea,ant and profitable to both o( us, "Sincerely yours. I~4CHA~:D [. I;UYL:\X Dirc<tor of ['nrcha,¢cs" Siqniticance of Purchases In the pages following this statement, under the caption, "The 'American' Dollar at \\:ork." many representative ex:tmplcs are cite,l, showing xxhat th'c COtllpany s purchases lltvqln iI1 ~.el'lt]> ,)t" production and employment throuzhout the whole range of h~dustr\, and the diffusion ,~f purchasing power created by dlc~,: buying orders : "Mmm[acturlng our requirements oi cdlophane gives 190,000 man-hours of emph~ymcnt annually to American work- ers: this entirely apart from the employment indirectly pro- vided in the extractive and other industries supplvir{g the raw materials from which cellophane is made. "More than 1.~C'~) people are emplo.~ed, directly and in- directly, in making 'Bull' Durham tobacco hag% labels, and tags--not counting tl~ose who ~ork at the production of other 46 materials, such as cotton, paper, t~ine, thread, and the like, which are used m making these items. "The manufacture of Luck~ Strike cartons gi~es 1,400 man- hour, of regular employment every week in one company's plant. "T,~ produce the pure maple stlg[l.r we ciinsume in a :,,ear keeps some 0.7(~) men and women busy during the sugar-pro- ducing season. "'More than I.Tfl0 people are engaged, directly and indirectly, ira fil]ir:j~ ;tit. ~,rders we place annually l,~r lio~ricc ~ith one -,upplit'r o( this commodity. "A lithographer reports that our orders for cigar bands and labels mean 352,000 hours of direct and indirect employ- tl'lent c'~, cr~. xear. "The men a::d \VOII]Cll who work in one ]iOX manufacturing company al,me owe 272.0($1 hours o i emplo3ment annually to the ~r,tcrs ue ;-,lace t'or milli,m~ c,f ci:~ar l~oxcs. "t,7_ccpin~ us supplied with the convenient 'Zi>tape' which vive~ the i.uck) Strike smoker an cas)-tu-open package of c[garettcs cna) les another o mpany I~, l,r~)~ide approximately 24.~I0i1 m:m-l:,.u:< c~f regular c:ntd~.~mcnt to its workers every year. A number ,~i other iffteresting facts are cited. It is pointed out d~at many of the 2.300 individual con> panics among the list" of suppliers have been doing business with this Purchasing Departn~ent for more than thirty x ears, an experience which speaks volumes for the so(redness and effectiveness of this buying. program from every angle. In summary there is the statement : ",qha:~ificar:r -ratistic<. thcse--'be trm: picture o/ The 'American' D,.i'~ar at work. Tilere are many c{mH,anics like ~mr~ in .\merica-not great bi~ sclf-contair!c<i bl s ~ess corFo- rations, but d:nply the means through which the resources, the skills and the energies of all the pe~qde, \w~rking at their jobs in fields aml forests, in mines and factories, in little towus and ~reat industrial centers, are tran~Iated into goods and services ~hich these same people in turn consume and enjoy. To that public serxice. The American T~haeco Com- pany. u)gelher xvi~l~ its suppliers, makes an important con- tribution." Taken in cCmnection with the contents of the booklet as a whole, this statement reveals a livel," interest in and PuRe i[ ,\SI N~ i ,,~0 I 0350e,'1-4
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an enlightened conc%~ti,,n ,~f the hnp,~rtancc ~f public relat{,ms on the part of ore: Ica,th:g comlmny, it may indicate one of the imI~mtant C~lltribU.till~ causes o't that leadershil,~ It has ,,lien hccn remarked that the t'urchasiu~ ])cl~artment ,,ccut,ies :t key p,:,dth;.~ and e~,5~,.xs an cxcul,ti,~n:'.] ,,I,j.,,:"uu({v hi ~l~e dcvclc~pment of such rclati(md~ips. [:v,.v l,m:cimsixl~ ,lepartmcnts have secu th~,t ,qd;,,r~unitS s,~ clearly, or have had the initiatixc t~ ~t,~ -omethiuV ab,mt it. The ['urchasin~ I)et,arm3cnt occut)ies the gruatcr part ot a complete lt~>or in the company's .",'ew York office building at Ill Fifth Avenue. and is under Mr. Bovlan's direct personal supervision. The buy, ing staff includes two Assistants to the Direct,)r of Purchases, three ]3uvers, and seven Assistant lluvers. \Vitln the exception" of leaf tobacco, they handle ail purchases lot the company's eight branche£ and warehouses; for the eight major det>,trtmen~s---Advertishk~, Cigar Execu- tive, [.e~at Malvlfacturing. New York (;eneral Office. Sales. and Traffic: i,,r seven subsidiary companies: ior the twelve divisions c,f American Suppliers, Inc.. the tobacco buying unit; and for the American Ciga- rette and Cigar Company and ~ts seven subsidiaries. The buying rcsp<msi'~ilk3 is di,hted int,J four major groups, each Buyer and Assistant F;uver being assigned ro a related gro~q~ of com:,~odities. (vhh which he be- comes thoroughly familiar through constant associa- tion. These buying divisions are: (1) plant and office maintenance an,t equipment: t2) miscellaneous sup- plies; (3) printing and miscellaneous piant supplies; (4) advertising supplies. This organization plan is such as to provide special- ized knowledge and skill, without any sacrifice of tlexibilhv, i",,r alibi,ugh it is the pdicy-oi the depart- me:~t :,, ha'.,: zh~" huvtrs <,end m',mh ,,f their time in the t~cld, at "dldr own pi~:nt~- where {he material~ are used, and at suppliers' i,~ants where thc materials are bein;~ pruduced, the staff is _-mticic:,tlv tar2e at:,t com- l,rehensively trained so lh::t s,,mec, ne is always ,m hand u, deal with each matcri:.d cxperdy and wit]~ cumph:te responsibility. This is accomplished by avoiding an excessively detailed breakdown of commodity groups, and further by a system of recc~rds and specifications that are as nearly c(~mplete and foolpr()of as years of experience can make them. The work of the department as a whole is coordi- nated by means of two committees of buyers, one con- cerned {vith market conditions, general conference, and traffic, the other with control of quality and standard colors. The latter committee works closely with shnilar .~roups from the Advertising, 3Ianuiacturing, Re- search and Sales Departments. It should be borne in mind that this purchasing responsibility is entirely separate fr, m~ the purchase of the leaf tobacco, whici~ is i~an<tled by three separate departments--American Suppliers, Inc.. the American Tobacco Company of the Orient, aud the Cuban Land and I.eaf Tobacco Company- responsible for the hun- The influence of American Tobacco Company purchase orders reaches into every State of the Union, and provides employment for thousands of workers in almost every type of occu~tion. 4 :! .Ma~c~[, 1941 47 b3 l ,'~ O 1 O 3 504.4. 8
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JAMES M. BYRNE Assistant to the Director of Purchases FERDINAND MALLGRAF Assistant to the Director of Purchases LELAND S. JONES Buyer LEWIS W. DAVISON Buyer It is the policy of the Purchasinq Department to brinq up its buyers from within the orqanizalion, and to train them from the start in the procedure and policies which prevail here. drcds of million pounds of choice tobaccos which the company buys each year in all parts of the world. But that is another story. It is a buying job of major im- portance, :t job for men of specialized experience. For example, in the domestic market aIone there is a staff of six Supervisors and seventy-five Buyers following the sales in the flue-cured or bright lc}~ markets of Virginia, North and South Car,Aina, and seven Super- visors and sixty Buyers in the Ilurlev or darh: leaf markets of Kcn'tuckv and Tep, nv-ssce. \Vith this single major excep:icm, the company's pur- chases are centralized in the }.'urchasing I)epartment at New York. There are, of cour_~e, the usual necessary exceptions of local purchases for immediate emer- gency use; small items and special commodities which, in the discretion of the management, can be procured locally to bezter advantage; cafeteria and medical supplies. Such purchases, however, are kept at a practical minimum and are strictly limited to the above classifications. In any event, when any purchase other than an emergency item exceeds $100 in value, the requisition is sent to the Manufacturing Department at the New York office and a regular purchase order is issued to cover the transaction. In this manner, a constant and positive control is exercised over all materials which are used by the com- pany, and the responsibility for quality is fixed, where it belongs--in the department which issues the order. Standards The emphasis on quality expressed in the slogan previously cited. "~ualitv ,::,f Product is Essential to Conti~tuinj S:~ccess," is no casual matter in this Pur- chasin~ Department. It is a :heine constantly im- pressed on buyers and on suppliers. It appears on signs in the purchasing office and in the plants: it is also promineqtly printed on all requisition forms. requests for q'.:~tatmns, and on purchase orders. The first page of ~}:e departmental "'Manual of Procedure JAMES T. CUNNINGHAM Buyer 48 JOSEPH I. CONNOLLY Buyer RALPH M. McMAHON Assistant Buyer MAURICE A. SCHNEIDER Assistant Buyer JOSEPH W. GANNON Assistant Buyer PURCHASIXG ~t p, t3"l';.',~O "1 0350,$@9
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and Policy" puts it in practical terms for the buyer, outlining his threefold responsibility: 1. Proper selection of reputable vendors. 2. Ability to furnish the ~.endor with clear and con- cise specific:~tio=:s. 3. :k detinite check :,~ ;~sce.":ain that the commodities received measure up so these specifications. Specifications are ctetinud as "an accurate description of tee commodities to be purchased . . . wherever possibIc, based on standard formulae or chemical analyses that have been set up by our Research Depart- ment over a period of time and {rEich can be confirmed by Research Department in their laboratories." Such specifications have been set up for the majorlty of materials constituting the companys re~flar re- cmirements, and specific regulations are made concern- i lg new materials--basing the standards on those for similar cumluuditics which have met ali requirements on previous purchases, and securing the approval oi the plant or department concerned on representative samples, concerning sizes, workin;C qualities, and other factors, belt, re a new specit'~c:~.ti,>n is established. Any chap.ges it: s:z,m,]ard pac:,.a:.~c_~. carton, Jabe} (~ ~l wrap- pinq mater{:5,, require the highest execuSve approval, in order '.,~, make sure that deliveries conform to the established specification, samples are sent by the plants to the Research Department immediateh on receipt of each shipment, and, as a matter of purrbasing routine, one copy of each purchase order covering such com- modities is automatically routed to the Research De- partment as issued, to enable them to anticipate receipt of the sample and prepare to make an immediate examination ~md render a prompt report on the quality of materials received, t:'iants are also required to iiii~ :iiiiiiil/ BU?ER ] F c,t.- . < :..c~,, ;%'. "LL:.7% l [ ~,sT *'~D CF~tCE MAinrE',.*nc.~ A~,D EOUIP~ESr ~!~°,'c~ " ~ i.,,, ISECRETARY AND DIRECTOR OF PURCHASES RICHARD J. BOYLAN ASSISTANTS TO D!RECTOR 0~: PURCHASES i JA~,(ES ~, BYRN~ FERDINAND ~ALLGRAF p~I~C:~AL C=~COiT!ES ¢2C/~,2' :,, ~ I ........... IBUYER] l BU'rER l sul~t :E~ DIVqSION 7//::':=: i CC'~Ir'EE ] o~ @E~,~m~L CCN~E~NCE , !L : (!:ii:° CCWw~,FTEE ON 1 7:.!.?1!i?,/" q .~. :~ ,~.~ ,.i :~ {,11..':~o "" ,~:~'h ,G" "~ ...... ;'::L.'L~ 2T'~/.'g i :*" .... .... 7 l :i ! CLIFFORD G. LEWIS Assistant Buyer MAi~c~r, 194t WILLIAM W. WILSON Assistant Buyer HAROLD F. COWAN Assistant Buyer CHARI.,EB A. HAIt~INS Assistant Buyer JOHN C. LYNCI.I Chief Clerk 49 , .?~ F) T,RL 1 0350,$50
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furnish the ['u~chasing l icl,arm:cn~ wi~h a weel<h report, and samples of all ,a rapping materials dlcy retche, to be passed ~m l~v the Purchash~K [)epartment c+~rurnittee on qt~:~lit}+. +~<l~,r. ar:+i strmdard colors, f~)r :Lppcarauce. c<,i~: :m,t quali~F ,,f m:~teriaIs. Control oi Quality LT(~l~r is a fac',,r rcccivin.~ i,::uicular altcnth)n an~! care in the pr,<urement oi ali i,rinte, I laL~eIs, cartons, bands, wrappers, and adverti_~ini~ matter. "'Lucky Strike green," "Pail Mall red." "t{ull l)urham yellow,;' etc., ;ire stanctar~{s from which no deviation is per- mitted. Kach c~fl~,r is l)ermanentl> defined in a color swatch guhte and by a spec:rc, photometric curve she-irad stand~,r,t coior va]ues subject to delinhc scientific test. Orders invohin;: the use of standard colors are accompanied by duplicate swatches, signed by" the vemh,r ;t,:~t by the buyer, ,,he retained in the company's tile. the ot]ler f(,r the use t~f the vendor. A representative of the Purchasing 13epartment is present in the printing or lithographing plant whenever a new run is started, to insure that these standards are ob- served in the producti,m process. Similar personal follow-up is encouraged on ,,~ht:: o:,mmodities as well. The speciticat{c,n or ordering ,iescription is atso detailed on the purchase record card for each item, so that there will be no oversight in providing adequate instructions to the vendor. This form, incidentally, which also lists the approved vendors for a given item and the price record of past purchases, is so compre- hensive vet simple that anyone in the department, though not regularly concerned v, ith that particular material, can nevertheless do a competent job of buying on the basis of the record, in an emergency, with a minimum of special research or delay. A further safeguard for quality of delivered mate- rials is the preparation oi a specification sheet to accompany orders, on a reg'utar Purchasing l)epart- ment form. This is prepared in six copies, with a direct reference to the purchase order by number, and is furnished to all departments concerned, as well as to the vendor. ]'he system inc]udes an acknowledge- ment copy. to he si;zned and returned by the vendor. indicating a complete understandhrz ~f the requirement. Model Store Advertising and display :ua:erials. invoh'ing art work and color processes, are subi~:ct to approvals by Advertising amt Sales I)eparm',enis at every stage o/ design and preparation be/ore 2oh,,g into production. when they t)ecome the responsibility of the Purchasing Department. To this end a unique laboratory method has been devised, in the form of a model store, com- plete to coumers and windows of two sizes, with standard cases, fixtures, and lighting. It is located adjacent to the purchasing office. On these counters and in dlese windows, the display material can be set up, viewed, and revised under con- ditions of actual use. to produce exacth the desired effect. The m,,!el store laas another practical use. Thc finished displays are photographed in this settin~ as an aid to the sales staff Ltlid as a guide to the retailer, and the proper and effective use oi such material has been greatly enhanced Iv this detailed pre-purchase attention. Library Another interesting feature which has a direct bear- ing on the maintenance of quality standards is the Pur- chasing Department library. Besides housing a well chosen collection of referm(ce books on purchasing and statistics, it contains the complete file of company 50 The Assislanl Buyers and cler- ical stall occupy a large open of- fice dtrectly otf the 12th floor lobby ot the New York Olflce building. .......... standards and specifications, standard color >amides, and progrv.ssixe ~n~,ducdon samples of imp~,tant Ia- bcls. posters, tins. and "',~,' ~r~,~ There is abo a composite exhibit of the varied activi- ties ,)f the department, charts and pictures illustrating pertinent 1,hales of the purchasin;Z functhm, and some samples of ,~ri~inaI packa:4e desi:~ns, historically impor- tant in the ,icv,:l,>pment of the omumtLv's well-known brands. The display cabinets and models indicate the range of several of the xaried c~,mmodities and materi- als procured for the om:pany and its subsidiaries. VMue The second rcsponsibilitF ,of the Purchasing Depart- ment is to secure value. "l'he manual expresses this by reminding the buyer: "Remember! that until we have " secured a d,~Uar in value f,~r every, dollar spent---qual- ity. an~l qu::ntity considered---we have not made a sat- i</acmrv purchase." The Purchasing Deparmaent committee on market conditions keeps alert to the conditions surrounding the cost of every, comm~ditv being purchased, keeping itself informed through trade reports, catalogs, Gov- ernment bulletins, periodicals, sales interviews, and other s.urces ,>f inf,~rmation. Buyers are instructed to call to the attention of the Director of Purchases or his assistants any decided variations in price, either up, or down, from tl~at noted on the previous purchase, and, the reasor~s for such changes are carefully sun.eyed. PURCHASING, '1 0:75Od. 5"I
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The Research Laboratory at Richmond is the ]arqest of qanization o! its kind devoted exclusively to the study of to- bacco. In addition to its de- velopment work, the labora- tory is constantly checkinq the quality of qoods delivered on purchase orders. Since it is rcc~)/nized that quality and value are more difficult to obtain o11 rush or emer~cuc) orders, and that sufficie:tt time is azl imp,,rtant factor ill both purchasing and production, a scheduling policy has been adopted ht respect to certain classes of requisi- tions. It is requircdthat tinished ske:cbes and art work be furnishe, t to the purcha>in~ ,!cp;Lrtment, with the necessary apprc, vals from advert[~hL,..* executives, in accordance whh certain detinhe schedules, amow~ which are the /oI1,)wing: l. \\imlow displays, counter displays, set-ins and posters--six weeks prior to date of lirst delivery. 2. Muslin si~ns--tweh-c weeks pri~,r to date of first delivery. 3. Showcase strips, decakomania or transparencies --ten weeks prior to th'st deGerv. 4. All Christmas boxes, cartons and packings--not la~er than luI- 1 in any year. The p,~lic3 ,~f ccm:pctitixe bidding is observed so far as possible. Ti~e purchase record card contains spaces for listing up to ten accredited suppliers of each item, and a master li<t of accredited vendors is also main- tained in the department. This is carefully checked and revised each year. The Buyer or Assistant Buyer se- lects from th~s list those potential vendors to whom a request for quotation shall be directed. Quotations are received on the company's own form, after advising 'the vendors as to the quantity to be or- dered, complete specifications, delivery point, time to ~[ARCI[, 1941 he allowed i~r delivery ~r >hitmlmtt, and the rival date on which qtl~uttions (,,ill be consi,lcre,l. The an:dvsis of quotations includes all t>ertinem fact,)rs, and not price alone..<peciat attcnti~m i~, directed to the tespon- silfilitv of the vendew, aT~d past perf~wmance. T,~ ,.3tair3":'i:l the o,mpg!rly'~ ,,xtn o;m!,cti/ivc pc, si- don. the fl,il. ',.in/ clause is cmb,),ticd in all co,at"acts covering aug extended period oi time: "'['hi- c(mtra:: i~ accepted xxith the distiller uu,[cr~tatuimg flint no lower pricks arc n]P.dC t-, other, than are qtlotev~, in this contract, quality and quantity c~msidkrc,i. Should any lm~er I,rlcca be quol'ctl during the IX'riod of tbk execution of tlfi~ o,ntract, automat|call3 .uki~ corrc.pondh:g prick'~ Will be FlqaL(Ic ill l}ki< contract." Procedure Purchasinx I,rocedure. as well as t*)lic), is detailed in the deparunent mant|a/, which als,~ contains speci- mens of all forms currently in use. indexed and tabbed for ready reference. The routine is shown in the flow chart reproduced herewith, tracing the course of a requisition and purchase order ir~ml its inception to the ultimate filing. A few of these forms and pro- cedurcs shoul,1 be described here in some detail. Rcq,|isiti,u,s. The bulk of purchases fire based on a factory requisition or ;m estimate sheet settin~ forth the probable requirements. Since this data is all- important to the purchasing program, particular care is taken to see that it is complete in every detail. The estimate sheet must contain the following essen- tial information : 1. The necessary aplwovals of authorized execu- tives. 2. Number and date. 3. Quantity needed. 4. Adequate description of c~mmodities wanted. 5. A &.finite date on which the commodities they cover will be needed. C)n requisitions, the same requirements prevail and, in addition, dlev must include dne following informa- tion : 6. Previous order number and vendor. If the ma- terial has not been previously ordered, the requi- sition is to be marked. "Initial order." 7. Actual usat:e f~,r the last three months, bv months. 8. The amount on hand. in transit, and due on pre- vious ,)rders, and the ,turation of each, based on previous three m~mth<' uqtge 9. Point of delivery, if <her than *!'~e plant from which the requisit]cm c:~;maTes. 10. The plant or acc~alnt to ;vhc, m charge is to be made. if other than the plant or department from which the requisition emanates. The Bu\-ers and Assistant P,u\er~ work from this information, aim are responsible for checking requisi- tions and estimates to set that these esseqtia[ elements are covered definiteh" and precisely before proceeding with the purchase. B'efore pass|n/ the requisition along to the Chief <~erk for the t)-[,i~,~ ,-,f tlne purchase order, the Ihtver adds these further d~.taiis : 11. The quantity to be ordered, and the percenta.,~e of trade tolerance or overrun or underrun, if any, that will be accepted. 12. A specific shipping date. 13. Complete shipping instructions, including rout- in~, packin~ (when necessary), etc. 14. Any unusual billing instructions which are not included in the re~tlar order form. 15. Price and terms of payment. 16. A definite statem<'nt of the F.O.B. point. 51 # j °* P1 T ;,'~ 0 l 0 3 50d. 52
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The Purchasing Dep~:tment library contains a representative dis- play of products illustrati