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5 Office Minimum Maximum President 430,000. 360„000. Vice President 17,000. 369000. Secretary 10,000. 18„000. Assistant Secretary 6,000. . 100000. Auditor 8,000. 12,000. Comptroller 9,000. 13,250. Assistant Auditors Cashiers j' 4,000. 11,000. Asst. Comptrollers }, As to the offices of Chairman of the Hoard, Treasurer and As- sistant Treasurer, we feel that the data is Insufficient to establish a schedule and thatt if it becomes necessary to fill the latter two offices or change the compensation of'the Chairman of the Board special approval will b® requested from the Commissioner. The approval of this schedule by the Commissioner is respect- fully requested. 88111948

5 Office Minimum Maximum President' 00,00G. 060,000'. Viice. President 17,000:. . 360000. Secretary 1C',000. 16,000. Assistant Secretary 6,000. 10,000.. Auditor 8'y000. 12„000. Comptroller 9,000. 13,250. Assistant Auditors ) ) Cashiera ;, 4,000. 11,000, Asst,., Comptrollers ) As to the offices of Cheirman.of'the Board, Treasurer and As- sistant Treasurer, we feel.that the data is insufficient to estab3ish a schedule and thiatt if it becomes necessary to,fill the latter two off'ices or change the compensation of the Chairman of the Board special approval. will be requested from the CommS:ssioner. The approval of this scHed'ule by the Commissioner is respect- fully requested. ~

125 A11 of' the above.increases.in salary havee been approved by the Salary Stabilization Unit.of'the.Bureau.of Internal Revenue, Treasury Department, pur- suent to laws and regulations in such cases made and provided, as shown by copy of' letter dated March 24, 1943 to Salary Stabilization Unit, together with salary schedule of the Ufficersof this.Company annexed thereto; reply of the Salary Stabilization Unit dated: April 1, 1943) , copy of letter dated April 14, 1943 from this Company to Salary Stsbilization Unit; and letter of approval dated Jul'y 2, 1943'from the Salary Stabilization Unit to this Company„ which are attached hereto. On motion duly made and seconded, the meeting adjourned. Assistant Secretary A8111349

C 0' Y Y March 24, 1943. Mr. Charles A. Drake, Head, New York office:, Salary Stabilization Unit„ Treasury Department, No. 253, Broadway, New York City, N. Y. Dear Ss,r:. Re. P. LORILLf.RD COMPANY Onbehalf of our client, P. Lorillard Company and,in, accordanc.e with Section.1002.14 of the Treasury Btegulations.re- Lating,to stabilization of salaries, we have reduced to writing the salary policy andisalary rate schedules of that Company for its.officers and are submitting them herewith in.tripli'cate for your approvaL, It is our understanding that when such schedules and policy have been approved we may, in accordance with said.Section 1002.14, make,within the limit:s of such schedule those.increases set forth in said section for wtlich the approval of'the Commissioner is not required. Any increase that may be given will be either in strict aacordanc:e with this section or the specified approval of the Commissioner will be requested. The attached salary sehedule has been abtained from the Company's payroll records dating from the incorporation of the Com- pany on November 2'3,, 1911, down to the present. These records are, of eourse, available for the inspection of the Commissioner if'suoh inspection Ls deemed necessary, and either the writer or any of the officers of the Company will be glad to discuss this matter with your unit' at any ti'mee and furnish such,other information that you may desire. As I.eapSained to Mr. Stephen Starkweather, of your Unit, in our conference yesterday, these offiicers were re-eleeted at the organization meeting,of the Board of Directors held on March 10„ 1943, and as we are anxious to be in a position to fix their compensation for the ensuing,ye:ar we would appreciate hear- ing from you as soon as may be convenient. Very sincerely ycurs.,

4 AUDITOR. The first Auditor of the Company received $10,000. per year in 1912 and p12,000. per year from 1913 until his retirement in 1915. A successor was elected at a salary of :a7,00G. per year, which was Increased to a maximum of ~10„000. ier year,, which he received from 1918 through 1923, at cahic.h time he became ComptroSler. Fiis successor was elected at a saisry of $8',000, per year, which wa:s gradually in- creased to :$12,000. per year in.1941. He was receiving compensation at that rate wheu.he died about a month ago. One of t he. Assistant Auditors who had been receiving ;'y11,000'., per year as Aasistant Auditor has been elected to replace him. CObPTROLLER. This office was established in 1924 and has at various times been combined with that of Yice President and is at the present time so combined. The salary for this office when.occupied'n alone has varied between 49,©00. per year and'. 43,250, per year. AwSxSTriiJP' Aili7I'EORS, CIISSiIE,k. And ASSYSTeN,T CO;+YTROLLRR. The num- ber of Assistant Auddtorss has varied.between two and three, and there are at present two. There has been one Cashier at all times. The office of' Assistant Comptroller has been combi:ned with others. quite frequently and quite frequently not.filIled. Since 1930.the minimum compensation.f'or any of these positions has: been $4,A0tJ. per year and.the mayimum 411,000. per year. From the above it is our opinion that t he salary schedule for our officers elected by the Directors is.as follows: 88111943

P. Lorillard Company Page. 2>. It isunderstoods that tEe adjustments hereby approved shall.not be used as a.basi.s forothe.r ware.e or salary adjust- me.nts, or to~o increase the level of pmduction costs appreciably orfurn.ish tkie basiss either to increase. _nricesor to resist. other-wise justifiable redttctions in prices. This ruling is based'upon the.information contained in your application referred to h©rein.Ifthe. infosatation iss sttb- sequentlyfound, to be imcorrect,, this ruling will' have no force or effect. In:the eventt you desire to protest the ruling of thiss office, you should submit to the Deputy Commis.sioner,s through this office, a request for revievr,thereof within fifteen days from the date of this letter. Otherwisethe, . case.e will bee con- sidered closed.. Should! you also~desiro~ a conference in this~ office., request.therefor should be made at the~tire yourprotestr isfiled.. 2espectfully. Charles. A:. . Drake, fiead, New YorTc. Offi ae mak .

f 3 SI9CRLTARY and T1MaS[JRLR. These offices were originally held by the.same man, who.recelved 415.,000.. per year in 1912,, was thereafter increased f'irst to $18,000. per year and then to ~20,000'. per year which he receit*ed until his retirement in 1924. The offi.ces were then split and a. Secretary elected at a compensation of ;$8',500. per year and a Treas- urer at a compensation of'.P,000. per year. Since that time there have been two other Secretcrries, one elected in 1927 at a salary of'4]i0,000. per year and thereafter increased to 415,000. per year which he was re- ceiving at the time of his retirement in 1937. The other was elected at a starting salary of u13,500. per year and.thereafter incre€sed to #18',000. per year which he was receiving,in 1941, at which time he was elected Vice President and has since filled both offices.. The compensa- tion of the Treasurer was gradually increased to amaxdmtua of' ~;12,000. in 1934 when he was elected Vice I'resident.and continued! to hold both offices until his retirement in 1941. HSs successor also holds both the office.o;f'Yice President and Treasurer, as we11 as that of Comptroller. ASSI>PAW ' 3ECRisTAHY and AciSISPANT TRFaZMR. Since 1928 this eombined offics has been occupied by one man, wh.o started at ~`1.,500.. per year and has been Increased until he ias now receiving 410,000. per year. He has no duties as: Assis~.tant. Treasurer but has that title purely for purposes of signing,docavnents in the Treasurer's absence. In addition, the Company in 191,1 elected an additional Assistant. Secretary et a salary of ~P6,000. per year, which was later increased to 47,dOO. per year, the present compensation. 88111 946.

pFFICE OF COMMISSIONEROF INTERNAL REYENUE NOURES5:REPLY TO Head, Nlsw~~ York Of f 1'~.ea Srl.ry Sta511fzstl!o.n Unit~. ANO REFER~~TU'. Ci::.S3QCLNY'. HCL r.. C., , TREASU~RY DEPARTMENT BUREAU OF INTERNAL REWENUE, SALARY STA,BILI!2AT.IiONUNIT 253 BROADWAY NEW YORK, NL Y'., APR 1 1943 Perkins„ Daniels & Perkins 30 Rockefeller Pl'aza. New York,, New York. Attention: T.. L. Perkins S'irs: In Re: P.. LorillardlCompany Reference is made to your letter dated Yarch 24, 1943, Tlherein you enclose for approval a salary poLicy which has been reduced to writing, applicable to the President, Vice Presid'ent, Secretary, Assistant Secretary, Auditor, Comptroller, Assistant Auditors, Cashiers, and Assistant Comptrollers of P. Lorillard Compayy. In connection therewith you are advised that the indicated spread between the minimum and maximum raqges for the respective positions is too wide to warrant approval, and that in.view thereof such ranges are not deemed to be within the scope of a salary rate schedule. as contemplated! by Section 1002.14 of the Commie!sioner"e Regulations. In addition, the IInit requires that all salary rate schedu']ies submitted for approval contain limitations as to the,maxi- mum (based on amount or percentage of basic sa]ary) increases to be granted in any one specified period. Your furthar attention is directed to the pxovisionss of 3ection 1002.14, . which state~that shdle an employer may re-., duce!a salary policy to writing and secure its approval aes an approved salary rate acheduley there is no requirement that he must do so before making a atstomary sa]ary i!ncreaee. The eziatencelof'suah policy, however, must be established to the satisfaction of the Co®ni.ssioner,, and the burden of proof rests upon the employer. Charles.A. Drake HCL:WC66 Head, New Bork Office

t 4 AUDITOR. The first Auditor of the. Company received 310,,000. per year in 1912'and,:~l'2,0002 per year from 1913 until his retirement in 19'I5. A successor was elected at a salary of V,000. per year, which was increased to a muzimun of :r10,00!0, r,or year„ which he received from 1918 through 1923, at :ahich time he becanre Comptroller. His successor was elected at a.salary of 08,000. per year, which.was gradually in- creased to ?12,000. per year in 1941. iie was receiving,compensation at that rate when he died about.a month.ago. One of't he Assistant Auditors who had been receiving 411,000. per year as Assistant Auditor has been elected to replnce him. COIdPTROLUR.. This office was established in 1924 and has at various times been combined with that of Vice President and is at the present time so combined. The salary for this office when occupied alone has varied between a9„000'. per year and'~13,250. per year. A33ISTYtidT AUS3Il'ORS, C1.SIM::R And. Ati5S8T,'.iPTi! Cc.;.Si'PROLLcR'. The nunt- ber of Assistant Auditors has varied! between two and three, and there are at'present two. There has been one Cashier at all times. The office of' Assistant Comptroller has been combined with others quite frequently and quite frequently'not filled. Since 1930 the minimum compensation for any of'these positions has been ;¢4,000. per year and t hei maximum 411,000. per year. From.the above it is our opinion,that t he salary schedule for our officers elected by the:llirectors is as follows: S8511947

2 very short time„ so.thatt no,history of increases was established as to them. Mr.:YSerbert A. Kent, who was first elected,President in March 1942, has been re-elected to that office for another year. VICE PR'r:STDENrS.. The By-Laws of'the Company call for five Vice Presidents, and with a: few excentions due to temporary circumstances the Company haahad five Vice Presidentaat all times; Of the original Vice Presidents one received $20,000. per year and four received .115,000. per year for 1912; AAll were increased to ;;25',000. per year in 1913 and to 000. per year in 1918. Since that time the Vice Yresidents have been started at various salary rates ranging f'rom.a minimum of 417,000. per year (with the eaception of one Vice President who,was started at $14,000. per year and increased'to 418,000. . per year the next year), and the maxi- mum of ~36,000, per year. 5ince 1930 six new Vice, Presidents have been elected at starting salaries ranging from 417,000.. per year (with the one exception above noted)~ to ;y25:,,000. per year. The maximum compensation attai!ned by Vice Presidents during both of the above periods was $36,000. per year. The Company in 1942 had five Vice Presfi.dents., as follows; Mr. George D. Whitefield, Xcecutive Vice President'. Mr. Sdgar S. Bowling, Leaf and Manufacturing, Mr.: J. S. Freeman, Wnufacturing. Mr., W. J. Halley, Vice President, Treasurer and ComptroLler Mr. Tbdd Wool, Vice President and Secretary. All are Directors of the:Company„ and all have been re-elected for an- other year. f38111941