Tobacco Documents Online

84 November 18, 1953 A regular meeting of the Board of Directors of P. Lorillard Company was held today at the office of the Company, 119 West 40th Street, New York City. There were present Messrs.: H. A. Kent W. F. J. Halley HopeWell D. A. Henderson I. H. Peak M. E. Dawley L. Gruber H. B. Parmele H. F. Temple F. M. Walson F. G. Searle A. James Anna F. Woessner, Secretary Mr. Kent, Chairman of the Board, presided and the Secretary acted as Secretary of the meeting. On motion duly made and seconded, the reading of the minutes of the previous meeting was dispensed with. On motion of 1ir. Henderson, seconded by Mr. Hopewell, it was unanimously RESOLVED: That a dividend of $1.75 per share on the Pre- ferred Stock of this Company be and it hereby is declared payable January 2, 1954, to stockholders of record at the close of business December 12, 1953. FURTHER RESOLVED: That an interim dividend of 30~ per share, plus an extra dividend of 40~ per share, on the outstanding Common Stock of this Company be and it is hereby declared payable January 2, 1954, to stockholders of record at the close of business December 12, 1953. Mr. Kent stated to the meeting that under the provisions of the Employees' Retirement Plan, all salaried employees covered by the Plan who have reached the age of sixty-five have been retired on the retirement income provided for in the Plan; that section 4, subsection (1)(e), provides that the Board of Directors may employ on a retainer or fee basis any person who is receiving a retirement allowance under the Plan; that certain retired employees had been employed on a retainer or fee basis under a one-year contract for the year 1953; that he had consulted with other officers and department heads for the purpose of determining which, if any, of those employees previously retired who had been employed on a retainer or fee basis during the year 1953, and also as to those employees who may be 0 retired prior to the end of this year, should be employed on a la retainer or fee basis, which retainer or fee would bein addition .1 to the retirement income such employees would receive; that in ~ his opinion and that of the persons he had consulted, the special 6-A experience and knowledge of the employees shown on the schedule p which he presented to the meeting make it highly desirable that the services of such employees be retained by the Company on either

a full-time or part-time basis as set forth in the schedule aftegr5 their respective names, and that he recommended that each of said persons be offered a contract for the year 1954, for the type of service and at the retainer or fee set forth after each such name on the schedule. Thereupon, after full discussion, On motion of Mr. Dawley, seconded by Mr. Temple, the followin preamble and resolution were adopted: WHEREAS: It is the opinion of this Board that the persons recommended by the Chairman have such special experience and know- ledge as to render the retention of their services highly desirabl for the benefit of this Company, NOW, THEREFORE, BE IT RESOLVED: That the proper officers of this Company be and they hereby are authorized to enter into and to execute with each employee set forth below a contract from January 1 through December 31, 1954, for the type of service and at the retainer or fee set forth after each name, which retainer or fee shall be in addition to the retirement income of each such employee, said contract to embody such other terms of employment as may be deemed advisable by the proper officers of the Company: Amount of Name: Type of Employment: Retainer: George D. Whitefield To advise with respect to $12,241.78 pei leaf, manufacture, and ad- annum, payab] ministration of the Com- monthly. pany's affairs; to assist in the purchase of leaf tobacco and related prob- lems, and to perform such assignments as may be re- quested, devoting thereto r such time as may be re- quired. Leslie E. Clemens Adam Riefner To assist and advise the $8,784.64 per Insurance Dept. and to annum, payab: perform such other monthly. assignments as may be requested,devoting there- to his full time. To assist and advise the $5,606.64 per Committee on Manufacture annum, payab and perform such other monthly. assignments as may be re- quested, devoting thereto 03170Jr11 at least 60% of the work- ing days. Henry Peterson To render services as Re- $1,976.00 per ceptionist at the N. Y, annum, payab , Office, and such other weekly. assignments as may be re- quested, devoting thereto his full time.

~~ hard R. Patterson Roswell G. Billings Charles T. Slayton Charles J. White Henry L. Bechtold Purchasing of leaf tobacco $14,226.12 per during the leaf season and annum, pay- advising in regard to the able monthly. Leaf departments and Com- pany affairs, and perform- ing such other assignments as may be requested, devot- ing thereto his full time during the leaf buying season and such time as may be requested in other seasons. To assist in the purchase $ 8,671.84 per of leaf tobacco, advise in annum, pay- regard to Leaf Depts affairs able monthly. at the Connecticut Leaf Dept. and perform such other assign- ments as may be requested,_g devoting thereto his full time. To assist the Plant Manager $ 4,550. per and Superintendent at the annum, payable Danville Leaf Dept. in weekly. carrying out the prescribed Company maintenance program, and to perform any assign- ments of a maintenance nature that may be requested, devot- ing thereto his full time. To assist the Manager of the $ 2,862.80 Connecticut Leaf Dept. in re- per annum, ceiving, storing and shipping payable of tobaccos and to carry out monthly. special assignments as given by the Manager, devoting thereto his full time. To render services in the $ 4,099.32 Manufacturing Division, per annum, Old Gold Branch, in the payable development of new products weekly. and such other assignments as may be requested, de- voting thereto his full time. William J. Garvey To perform such assign- $ 5,778.36 ments as may be requested per annum , at the Old Gold Branch, payable Jersey City, N. J., devot- monthly. ing thereto his full time.

Mae Fitzsimmons Edward F. Higgins Geo3ge Peterkin Edward Jais To assist the Branch Management and the Head Foreman of the Old Gold Cigarette Packing Dept. in the development of supervisory personnel; also to assist in meeting the production require- ments of the department and to carry out special assignments, devoting thereto her full time. To assist and advise the Purchasing, Sales and Advertising departments, and to perform such other assignments as may be re- quested, devoting thereto his full time. To assist the Sales and Advertising departments in regard to window and other point-of-sale dis- plays and perform such other assignments as may be requested, devoting thereto his full time. To assist and advise the Sales Board and perform such other assignments as may be requested de- voting thereto approxi- mately 70% of the working days. Richard M. Harris Warehousing of display ad- vertising and sales promotion- al material, distribution of such material to the Sales organization as directed by the Sales Service Dept., and to perform such other assign- ments as may be requested by Asst. Sales Manager, Sales Promotion Manager or Field Manager, devoting thereto his full time. Christopher C. Bittel To render services in the Sales Dept. and such other assignments as may be re- quested, devoting thereto his full time. 87 $ 2,642.48 per annum, payable weekly. $ 7~787.52 per annum, payable monthly. $ 32540.64 per annum, payable monthly. $ 4,826.88 per annum, payable monthly. $ 2,442.08 per annum, payable veekly. $ 4,074.72 per annum, payable VI weekly. ~A Cj

Thereupon, after full discussion, it was, on motion of Mr. Halley, seconded by Mr. HopeWell, unanimously 89 RESOLVED: That in order to alleviate the hardship, by reason ' of inadequate annual retirement income, suffered by certain retired employees who have served this Company long and faithfully, the proper officers of this Company are hereby authorized to expend not to exceed the sum of $12,250. during the year 1954 on the following basis: That each former employee who has heretofore been retired under normal retirement, whose name is included on the schedule which has been presented to this meeting and whose retirement income is less than $1000 per annum, be paid by the Company an amount of money to supplement his Annual Retirement Income in accordance with the following length of service plan: 1) Those with thirty years of service and more to the Company to receive an aggregate of $1,000 per annum; 2) Those with f ifteen to twenty-nine years and eleven months of service to the Company to receive an aggregate of $750 per annum; 3) Those with ten to fourteen years and eleven months of service to the Company to receive an aggregate of $500 per annum. FURTHER RESOLVED: That such payments are authorized for the year 1954 only, with respect to each such retired employee, shall not be transferrable by them, shall cease as to each retired em- ployee upon his or her death, and may be terminated as to any one or more or all of them at any time by further action of this Boar in its sole discretion. Mr. Kent presented to the meeting a Sales Promotion Budget 1 the year 1954 calling for an expenditure of approximately $6,440 to be allocated as follows: OLD GOLD Cigarettes $3,985,000. KENT Cigarettes 2,310,000. EMBASSY Cigarettes 8,100.. Tobacco Brands 137,500. Thereupon, after full discussion, on motion of Mr. Henders, seconded by Mr. Searle, it was unanimously RESOLVED: That the Sales Promotion Budget for the year 1° as presented, be adopted and that it shall be reviewed by the E periodically during the year. Mr. Kent presented to the meeting a C igar Sales Promotion 0 get for the year 1954 calling for an expen diture of approximat C,? $392,120. to be allocated as follows: ~ , ~ MURIEL $258,040. ~ HEADLINE 89,840. a VAN BIBBER 40,640. D^^r'Y FORD 3,600. ~

90 Thereupon, after full discussion, on motion of Mr. Henderson, seconded by Mr. Searle, it was unanimously . RESOLVED: That the Cigar Sales Promotion Budget for the year 1954, as presented, be adopted and that it shall be reviewed by the Board periodically during the year. Mr. Kent presented to the meeting an Advertising Budget for the year 1954 calling for an expenditure of approximately $17,412,500., to be allocated as follows: OLD GOLD Cigarettes $11,650,000. KENT Cigarettes 5,500,000. BEECH-NUT Tobacco 200,000. MURIEL Cigars 37,500. BRIGGS Tobacco 24,000. HEADLINE Cigars 1,000. Thereupob, after full discussion, on motion of Mr. Henderson, seconded by Mr. Searle, it was unanimously RESOLVED: That the Advertising Budget for the year 1954, as presented, be adopted and that it shall be reviewed by the Board periodically during the year. On motion duly made and seconded, the meeting adjourned. (/ ' zt_'r~~ Secretary

0 ~ 88 Wilhelmine Becker -a To assist General Account- ing Dept. in maintaining various manufacturing,.ad- vertising and other cost records under the jurisdic- tion of the Asst. Comptroller, devoting thereto her full time. H. D. Seeley To render services at the Louisville Branch of the Company, and such other assignments as may be re- quested, devoting thereto his full time. duties as may be assigned, devoting thereto her full time. $ 2,819.04 per annum, payable weekly. $ 5,512.92 per annum, payable monthly. $ 1,985.76 per annum, payable weekly. and to perform such other ~ Jennie Nelson To assist the Manager of the Statistical Dept. in completing the IBM printing, records and mailing of in- -voices to Company customers tribiition to each such retired employee so that the sum of Annual Retirement Income and the contributions of the Company would aggre- gate for those with service to the Company of thirty years or more, a total yearly amount of $1,000; for those with fifteen to twenty- nine years and eleven months of service to the Company, a total yearly amount of $750; and for those with ten to fourteen years and eleven months of service to the Company, a total yearly amount of $500; that be was informed that the total of the contributions by the Company to such employees for the year 1954 would be about $12,250., and that in his opinion the Board of Directors should authorize such contributions in recognition of the long and faith- ful services rendered by such retired employees to the Company. I Mr. Kent stated to the meeting that it has been brought to his attention that a number of employees who have been heretofore re- tired, all of whom have had many years of service with the Company, whose services have not been retained by the Company after retire- ment, are receiving inadequate retirement incomes from the Company's Pension Plan because of changed economic conditions. He stated that the Retirement Board at a meeting held November 5, 1953, had adopted a resolution recommending to the Board of Directors a method of alleviating this hardship on the retired employees concerned, whereby, if approved by the Board of Directors, the Company would make a con- Thereupon, at the request of Mr. Kent, the Secretary presented and read to the meeting the resolution regarding this.matter adopted at a meeting of the Retirement Board on November 5, 1953, and also presented to the meeting schedule showing the names of. such employees, their respective length of service to the Company, the amount of the respective annual retirement income, the proposed Company contribution, and the total amount that each retired em- ployee would receive if the recommendation of the Retirement Board be approved. I