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'U. ~_' 119 WEST FORTIETH STRGE OT NEwYoRx le,N.Y. OlriCE OI THE PRESIDE/iT February 17, 1954 To the Board of Directors of P. Lorillard Company: The Treasurer of this Company has certified to this Board that the amount of incentive com- pensation income for the calendar year 1953 is $7,933,071.46, and you have, in accordance with the provisions of Article XII of the By-laws, authorized the payment of 1% of such amount to the President, 8/10th of 1% of such amount to the Executive Vice President, and 6/10th of 1% of such amount to the other four Vice Presidents. By the terms of the By-law there remains 5.8% of such income to be distributed to such other officers and key personnel of the Company and its subsidiary, including officers and key per- sonnel who are members of the Board of Directors, in such amounts as this Board may determine. Under Section 3 of said Article XII of the By-laws, it is my duty to recommend to this Board what officers and key personnel, other than the President and Vice Presidents, and in what amounts, the 5.8% of incentive compensation income shall be paid. I accordingly recommend that there be paid to each of the persons named in the attached lists the amount set after his name as incentive compensation for the year 1953. Very truly yours,

Distribution, Incentive Compensation Income - 1953 (2/17/54) Management, General Research, cont'd. Herbert A. Kent $31,732.29 E. L. Bernholz $ 700.00 T P Coti 500 00 . . s . Comptroller's Division A. A. Kopt 500.00 J. J. Darby 5,000.00 Traffic Dept.: L. E. Lewis 1,500.00 J. L. Mason 2,750.00 D. J. Macmillan 4,000.00 J. R. McDermott 2,500.00 E. J. Hoyt 1,400.00 R. W. Stevenson 1,500.00 F. Krause 700.00 F. Caldararo 1,300.00 W. Schmitt 1,400.00 ~ R. L. Ross 2,500.00 E. L. Beard 500.00 A. Henelt 1,300.00 C. W. Hascup 300.00 F. T. Fredrickson 900.00 L. Grosso 350.00 E. P. Hahn 1,200.00 G. Cus ick 350.00 W. Birn 900.00 J. Seeman 300.00 J. C. Brisotti 1,400.00 M. R. Schmidt 300.00 000 00 1 S. Sperry . , J. Leben 900.00 Purchasing Dept.: S. Mintzer 750.00 W. Coyle 1,200.00 F. M. Walson 17,000.00 J. Eustice 900.00 P. G. Connors 2,000.00 J. Winters 200.00 C. E. Fitzgerald 400.00 B Tem leton 300 00 . p . J , Dramis 250.00 Advertising Dept.: P. F. Croke 400.00 M. Miller 700.00 F. G. Robbe 4,000.0( J. H. Combs 750.00 C. W. Berkley 3,500.0( G. Mackie 750.00 G. H. Whitmore 1,500.0f J. J. Galvin 250.00 H. F. Cummings 600 . 0, W. Duffy 400.00 J. C. Ferriter 400.0 H L H d 625 0 . . en ay . Treasurer's Division E. S. Diehl 400.0 Mary Hall 350.C G. 0. Davies 5,000.00 F. H. Weiske 3,500.00 Cigar Dept.: E. W. Naumann 3,500.00 H. A. Dooley 2,500.00 J. F. McKervey 5,000.+ W. G. Driscoll 750.00 R. L. Borchardt 5,450.1 A. Eichhorn 750.00 J. J. O'Connor 2,850.1 W. J. Nazaruk 1,350.00 W. Goldstein 2,000. J. Howard 700.00 W. C. Gibson 1,000. J. Kienast 450.00 G. Sauer 500. E. Chouinard 575.00 R. S. Billings 800. Lillian Oher 525.00 Wilbur McGough 450.00 Sales, General Vincent Miele 200.00 Fi F. e m p e 22,990 E. G.Kontos 450.00 F. W. Storm 5,600 E. Grape 300.00 E. P. Primus 5,600 R. W. Young 2,000 Research Dept. A. J. Corby 5,600F -=,..... ~ O W Andre Jr 1 500 Dr. H. B. Parmele 31,732.29 . , . W W. Sullivan N , 1,500 J. L. Keffer 3,000.00 J. E. Murray O 4,000 J. L. Bohlken 500.00 M. Yellen 5,60C W. J. Van Elden 500.00 ~ H. E. Gercken G'1 5,50C R. A. Wagner 1,000.00 R. W. Snyder W 1,95( J. E. Zarembo 1,200.00 H. C. Juneman 70( D. A. Anderson 700.00 M. J. Cramer 5,60

Sales, General (cont!d.) G. E. Rodman fl, A. Sherer Eva Dehm J. J. Smith J. Platt Industrial Relations P. W. Kayser W. C. Harding A. L. Davies, Jr. D. Eldredge R. W. Wyland Market Research P. B. Marzoni Caleb Brokaw Manufacturing Div. J. E. Bennett B. S. Vance M. S. Block J. Berner Executive Offices A. F. Woessner A. C. Nuber T. L. Per kins E. E. Fitch H. E. Erickson S. Shapiro Whitlock Branch G. A. Hoffmann H. M. Lacy S. H. Ellis E. G. Breeden M. M. Griffin L. T. Irving H. S. Belt E. Francis T. H. Fletcher T. H. Doherty J. M. Boos H. T. 3urton T. A. Childress C. Crews J. M. Edmunds E. L. Fultz W. R. Hardman A. E. Mann C. Morris F. H. Poehler F. H. Snead U. H. Taylor $ 700.00 2,250.00 500.00 200.00 200.00 4,500.00 3,000.00 1,794.91 600.00 1,200.00 4,500.00 750.00 9,000.00 3,500.00 2,500.00 1,200.00 4,000.00 1,000.00 3,000.00 500.00 1,500.00 500.00 4,000.00 1,750.00 1,200.00 1,000.00 650.00 1,000.00 800.00 650.00 650.00 650.00 300.00 300.00 400.00 400.00 425.00 350.00 , 425.00 400.00. 400.00 350.00 425.00 425.00 Whitlock Branch, cont'd. E. 0. Van Pelt A. C. Powers W. W. Wellman W. H. Wingfield C. H. Gantt J. W. Pool L. D. Abbott R. B. Barnes T. O'Hare A. D. Hierholzer W. L. Imwold J. N. Reams H. A. Slaydon C. S. Winder J. H. Jackson J. B. Watkins Louisville Branch A. J. Cheek, Jr. E. T. Siers W. B. Young O. B. Van Hise W. A. Greenfield M. F. Reich V. E. Blunk W. A. Schlenk R. Summers G. W. Kirzinger E. Powe, Jr. H. E. Everson R. W. Lotz J. Miller J. R. Goulder E. McKinney D. F. Bube C. R. Clark G. N. Cooper J. W. Daugherty J. J. Durbin M. Highley, Sr. W. L. Johnson J. R. May A. M. Zweydorf R. A. Quaack C. E. Raser M. N. Sabo E. Singleton A. Van Bakel E. K. Warden L. Williford C. Cundiff E. White C. E. Calvert D. M. Hall P. R. Jacoby W. Comstock B. Batts E. Beckwith $ 375.00 650.00 400.00 400.00 400.00 200.00 225.00 250.00 200.00 200.00 250.00 250.00 225.00 200.00 225:'00 400.00 5,000.00 2,600.00 1,800.00 2,600.00 1,200.00 1,500.00 600.00 400.00 1,400.00 700.00 1,300.00 700.00 1,400.00 1,200.00 1,000.00 1,500.00 500.00 500.00 1,000.00 300.00 500.00 500.00 600.00 450.00 225.00 1,000.00 500.00 400.00 1,000.00 500.00 500.000 500 . 00 w 500 .00 6.4 500. 00 p 350.00U1 250.0(An 300.00 1,000.00 500.00 500.00

1' 1 Wisconsin Leaf Dept., cont'd. A. F. Jensen $ 300.00 Donald 0. Gumz 100.00 N. K. Nielson 100.00 Federal Tin Company G. W. Davidson 4,000.00 E. B. Graham 1,000.00 P. Lombardo 1,000.00 0 ~ ~