American Tobacco
Publicity Articles, Appearing in Periodicals From 1929 - 1947
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- Litigation
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COMPETITIOA
GEORGE WASHINGTON HILl.
-t #.
Rl,~Ol 03G0165
Iq T ;'40 l 0350166
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
]
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
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
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
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
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
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
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
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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
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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
1
~j
!
I
i
]
GEORGE ~VASHINGTON HILL. PRESIDENT OF THE AMERICAN TOBACCO CO.
• g6 •
~Y;,~OI 0350~/76
!,
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'
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
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
"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')
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
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
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
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.
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~$+ l{e
{~ I klil}l~ill2. ,Iliitctlr el ~httib~ arid trees.
tHlt !lit liuic it ilHIIle I~ ln+l~llv spell\ ITS-
It'\liltZ Ill r!!t' l;idill eli+ tcadtilt~ ;i ,tetectivc
~torv. Nctct d,,t'~ hin umbiie inlaginatioii
sir:iv iar fI,~:lt the things that excile ;the
coInnlt>n taste. Mil:tcuhnl~lv attuned to t~
he is at his happiest when he feels ~t re:
Sl~mdhi,z to hN own emhusiasm fi:lr ihe
toasted ci~alette
+t"
035018S
GUARDIANS OF LIFE AND PROPERTY
You may never give a second thought to the old man
who ha~ls your car as the flyer rushes by ... but the cost
of his carelessness would be terrible. People are nearly
all that way obout protection. Its value is so often
underestimated until it fails.
One of the jobs of Motor Control on thousands and
thousands of machines in industry is to guard not only
equipment but the men who command it. Until it fails,
Motor Control does seem so incidental, so unimportant.
A careless, unconcerned attitude in the acceptance of
Motor Control is dangerous. Thinking executives realize
this and take steps to avoid its penalties. Sometimes they
insist on a searching test of every piece of Motor Control
purchased. Thousands of other executives achieve the same
result by simply standardizing on Cutler-Hammer Motor
Control. Your factory will find either course well worth
while. CUTLER-HAMMER, Inc., PioneerManufacturers of Electric
Control Apparatus, 1320 St. Paul Avenue, Milwaukee, Wis.
CUTLER-HAMMER MOTOR CONTROL
FROM THE MIGHTY
TO THE MIDGET
Cutler-Hammer Motar Cantrot
stc~rts, stops, reg~tatus a~d pro-
tects electric motor| ot e~ery ~i,~e
and description. The huge ga~e
controls of the Famous Wetland
Canal locks and t/~e cold control
on your own hou~ld ~efrtg-
erator are prgbab~ b~"Others
• . . products Of CU~et~rHammer.
II•
f3 T ,.~ 0 1 0350 "! 86
---
+ .... Ki3DLS,.f, ,,ss !
HANDSOME
NEW PREMIUMS
SAVE B • W COUPONS
IIAI.UGH (IGANITTlS...MOW AT POFUI.AII PlllCiS...At$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
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
• 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
/
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 "!
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
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 '
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.,.~
..... ..... 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
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
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
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
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:~ ,~
~ =-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
$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
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
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
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.
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
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
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
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
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
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
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
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
"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
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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.
r,'.~o.~ 03502 1 s
".~. 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
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
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
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
-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
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
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
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¸:
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.
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
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
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'
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
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'~;)-'.
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,
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
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:, ,
[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
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~
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
-% ,
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
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 ?
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 $575,ooo to the com-
pany ended with the sales of Spuds at
exceedingly low ebb.
At the beginning of t928 the tadpole
lost its tail, turned into a frog. The A_xton-
• 53 •
",:%
>j
i
WRITE US
your opinion of this
menthol-cooled smoke
it *cmall~ ~oth= . . .
Do. ir ~.~,~ ~,t "~--...~_,.
• • • a,,i ~.
•o •
*4,000
CASH
PRIZES
SPUD
~.*mthoi- eool*d
Cl OARI~TTE$
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
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
HARRY FORD SINCLAIR
A PORTR.~IT BY ER.",'EST H.,4MLIN B.4KER
• 56 •
f3 T,'dO "t 03 5024. !
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
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
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
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
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 :
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~
,*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
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
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
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 •
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
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
"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.
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° •
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.~.. ~.
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 • ,,-~.,
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
,.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
~ 4
MR. JACOB VOICE MAKES 75 PE~. cENT OF ALL U.S. CIGAK BANDS ~$EE OPPOSITE pAGE)
• 76.
~T,'~O'~ 0350",260
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
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
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
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
,~ :~ ~ REIDSVILLE, NORTH CAROLINA : ........
?
- ,~,z "1 _ _
fl'f ,,C "; 035026~.
---
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
"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
---
L~
4
iq 1-,'~0 I 03 502,.t-" '~
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
+:
. • +
RockJn,
.
R.]- ,.',,' n, ... 1 03~02 72
?
f-'31"],~0 '103S02 ,-'.-':~
_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
+ • ++. + .=~
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~
1",'.~0'1 03502 76
R]",'K01 03502 ?2
, -:"
• 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!
I LEAKSVILLE THE BUSINESS IvlETROEO[!S:OF ROgKINGHAM COUNTY'S V~
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
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 "!
l
\
T ;.40 '7 0"3 ~02 El 2
!~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
%
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,_¢
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
---
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
\
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
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
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
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
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
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.
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~
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
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
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
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
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
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
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
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
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.
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
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
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
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
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
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
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
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
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
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
|1 II L.~ I,W ........
A
....... v.,
j
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
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
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
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
baceo ~t
/q ] ",'~ f~ "t r') "~ ~" r) -~ --~ ..-,
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
---
b
~l. ,/l/H ~ o 4/
ii!~!!!!!ii!ii!ii!ii ii
"iii~i:iiiiiiiiiiiii~i/
f3 "1",'KO "I 03 50323
---
f~
,,~ ~,~,~, ~ !ii!!!!!!~!~,!!,iiii!~i,~ ~, ,~,~i!!,!!~!!!!i!, i!,! ~~, ,~,!!!!i !,,~,,,ii~i¸ ~ ~ ~
.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
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
""t
c~
9
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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/iiiii~i~i
Publlsbed by
VIRGINIA STATE CHAMBER OF COMMERCE
RICHMOND
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~ T ~,qO "1 035033"1
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
Reprinted by Special Permission
o/ Copyright Holder
The Richmond News Leader ('oral, any
i iiiiiiiilziiiiiill
f31,,,O'l 0350333
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
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T,' O 1 0250334.
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.
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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
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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.
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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
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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.
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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
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:
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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
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~
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f-~ T,'~O ~035034.3
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~,.
_ ....
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
,~01 03~034.6
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
' 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
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
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
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fqT gg"l 03S03G0
~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
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
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1": 0"I 03 503 52
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
,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,¢
- .
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
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
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
',~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
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
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
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 ?
• .. 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
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.
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99
]" ,'.qO "! 0350363
~,i TYPE COSTS INI
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Thai is ~h, hundreds of a~endes, manufac-
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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&
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;
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
]
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
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
' 't
tq]',:qL '1 0350369
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
,~[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
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
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~
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
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
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<l
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
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,.-. ~
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
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
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
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
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
' 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
TOBACCO COMPANY APPRECIATION ~
Important Typ,
Used InTheBle
Of Lucky Stri
PACKAGING
Buyer
Fro
~T:,q01 035038a
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
Buyer
Vice-Presidents Of The American Tobac~
ii~| i i
Where Reidsville ~ets Most Of Its Leaf Tobacco
HILL
I I
Local Branch
---
: , .~~~J~IIi~,,
; ~ : ' - q:v=~ • - ~' , ~'~.G~
...... LE (N C ) REVIEW THE AMERICAN TOBACCO COMPANY
APPRECIATION EDITI
R]'~01 0350388
General Foreman
J IL \,O~M.%N
i F, ngineer Power Plant
Foreman
Cashier American
Suppliers, Inc.
~, "- mlllillli~
!:
~-,WO "! 03 50389
THE TOASTING PROCESS
~ T,',ffO 1 0350390
~ 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, ~.
Tobacco Auctions &tee
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
.:~; ";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
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
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?¸¸ :::
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;:'
~,,,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
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
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
~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
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
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
---
The Benso.s
BEFORE
DRESS YOUR WINDOWS
t~
f~T,.~O 1 03S04.0~
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
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
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
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"" .....
!!]"
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
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
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
;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-
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
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
THE
7 +'-+
STREET :rOURNAT,.
Three Cigarette Brands
Show Gain Greater
Than Industry Avera~ze
FRIDAY.
.... 2]:+::
,-=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
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
,acco Industry Provides One of
Auctioning Tobacco
A Tobacco Field
,/.
R]+,,~O 1 0350420
March tl 1940 BAI~ON~S
,,-; 0 I 0 3 504L 2 1
:%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
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
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~
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
~,~"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
,(
/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
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
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
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
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
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'~.~ .~ .~
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~~
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" #. • _,~ .
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 /¢% .,<.+-._ .,.. ~ :~ + _
• 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
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
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
./-,,.
0
1
,.~ 0 1 0 3 5;04.4- 0
&
$,
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
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
---
41
• , ]
.[7-.
i
• &
What
Arc Cigarette Prospects tbr "~11:)
(;. Rf}BER'I DI"~tlILL
0350~44
---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
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
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
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
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
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
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
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
The Purchasing Dep~:tment lib