NYSA TI Single-Page 1
Report
Abstract
Highlights of the Year ................................................................
Fields
- Named Organization
- Bank of New York (Sells ADRs for BAT)
- Benson and Hedges (Benson & Hedges (elite cigarettes, 1948))
A small, elite cigarette company in NY, NY in 1948.- City Bank
- International Association of Machinists
- Leo Burnett (Advertising/PR)
Defense- National City Corp.
- Philip Morris & Co. Ltd. (Cigarette manufacturer, incorporated in U.S. in 1902)
Philip Morris & Co. Ltd.., was incorporated in New York in April of 1902; half the shares were held by the parent company in London, and the balance by its U.S. distributor and his American associate. Its overall sales in 1903, its first full year of U.S. operation, were a modest seven million cigarettes. Among the brand offered, besides Philip Morris, were Blues, Cambridge, Derby, and a ladies favorite name for the London street where the home companies factory was located - Marlborough.- Philip Morris Australia Limited (a unit of Philip Morris International)
PMI's first major overseas affiliate (1954)- Philip Morris Companies Inc. (Parent company of Philip Morris USA, Kraft, Miller)
America's seventh-largest industrial enterprise in 1993, owns Kraft, Miller Brewing, General Foods, and more.- Tobacco Workers International Union
- Benson and Hedges (Benson & Hedges (elite cigarettes, 1948))
- Named Person
- Alexander, Dean
- Ames, Clark T., Jr. (PM VP (1953-56), Board of Directors (1976-85))
Defense- Brand, Philip Morris
- *Britton, A.C. (use Britton, Andrew C.)
Defense- Britton, Andrew C (PM Manufacturing VP 1957-64, Board of Directors 1970-74)
A.C. Britton was the Vice President of Manufacturing for Philip Morris, Inc. from 1957 to 1964. He was Vice President of Corporate Tobacco Manufacturing from 1965 to 1974 and on the Board of Directors from 1970 to 1974. (Source: Philip Morris Summary - PMI Liability Notebook) Britton was also PMI Vice President of Tobacco & Gum and a PMI Vice President from 1970 to 1973. (N.M. Tobacco Companies Personnel List)- Cleve, Walter Van
- *Conboy, Hewitt, O'Brien & Boardman (use Named Org. Conboy, Hewitt O'Brien and B
Defense- Cookman, John E.
- Craig, Cornelia
- Cull, Howard S.
- Cullman, Howard S. "Hugh" (PM Inc., President 1957-67, CEO '67-78)
Howard "Hugh" Cullman was the brother of Joseph Cullman Jr. He was president of Philip Morris, Inc. from 1957-67, Chairman of Board and CEO of PM 1967-78, Chairman of Executive Committee of the Board 1978.- DuPuis, Dr. Robert N. (VP Research, PM)
Vice President of Research for Philip Morris, Inc. from 1955 to 1956. He was Vice President of Research and Development from 1957 to 1959 and on the Board of Directors from 1957 to 1963.- Gager, Forrest L.
- Greene, Roger
- Hanson, Leonard G.
- Hatcher, W.H. (PM Sr. VP 1958-61)
Defense- Houston, Minnie
- Jones, Ray (Vice Pres. of PM, 1953-57, VP Sales '58-64)
Ray Jones was a Vice President for Philip Morris, Inc. from 1953 to 1957 and Vice President of Sales from 1958 to 1964. Then he became Vice President of Corporate Sales Planning in 1965 and was on the Board of Directors from 1965 to 1974. (Source: Philip Morris Summary - PMI Liability Notebook) MR. Jones was a Office Manager for Philip Morris. (PMI's Introduction to Privilege Log and Glossary of Names, Estate of Burl Butler v. PMI, et al, April 19, 1996)- Jones, Spencer T.
- Keith, Michael
- Kibbee, Chandler H. (PM Finance Exec. VP 1960-73)
Defense- Lyon, A.E.
Defense- Lyon, Alfred E.
- McComas, O. Parker (PM CEO)
Defense- Mcfadden, Walter N.
- Millhiser, Ross
- Millhiser, Ross R (TI Executive Committee, PM Pres, 1968)
Ross Millhiser was Vice President of Philip Morris in 1952, VP and Director of Marketing at PM 1961-62, President of PM USA in 1970-72, President of PM Inc. in 1977, Chair of the Tobacco Institute Executive Committee and Vice Chairman of PM Inc. in 1979, Chairman of the Board of PM in 1980. The above information is gleaned from correspondence found within the Philip Morris collection of documents. The assumption is made that Millhiser worked at Philip Morris the entire time between 1952-1994, based on his correspondence during those dates, however nothing has been found in the documents verifying his positions at PM during the gaps in time noted above. President of Philip Morris in 1968 Millheiser was with Philip Morris in 1983 in New York. Knew that profitability of PM derived from addictive nature of nicotine. Why risk multi-billion dollar business for your rats, Victor.- Morris, Johnny Philip
- Nolan, Ray
- Riddell, H.E.
Defense- Rockey, K.H.
Defense- Roper, R. P. (PM Operations Exec VP 1965)
Defense- Roper, Robert P, Jr. (PM Marketing VP 1993)
1993 Held this position from June 7, 1993 to October 31, 1993, when he resigned.- Seligman, Robert B. (PM VP of R&D c. 1976-82)
Vice President of Research and Development at Philip Morris Richmond, VA 1976-1982. Reported to Senior Vice President of Operations. In 1982 transferred to tobacco technology group. Wanted to share ammonia and other tobacco technology with PM International companies.- Shaw, Robert
- Smith, Owen C. (PMII Secretary 1987-96, VP & Deputy Gen. Counsel 94-96)
1996 Secretary from November 20, 1987 tuntil at least June 28, 1996. Associate General Counsel from May 8, 1988 to September 27, 1994. Director from November 5, 1993 until at least June 28, 1996. VP and Deputy General Counsel from September 27, 1994 until at least June 28, 1996.- Wagner, Pauline
- Weissman, George (PM Chairman & CEO '79-84)
Vice President of Philip Morris from 1954 to 1956. Vice President and Assistant to the President in 1957. Vice President of Marketing from 1958-59. Executive Vice President of Marketing in 1960. Exec. VP Overseas in 1961, Exec. VP PM International 1962-66. President from 1967 to 1972. President and Chief Operating Officer in 1973. Vice Chairman from 1974-78. Chair and CEO from '79-84 and on the Board of Directors from 1959-84. "Mastermind" of Philip Morris' direction. - Ames, Clark T., Jr. (PM VP (1953-56), Board of Directors (1976-85))
- Date Loaded
- 16 Mar 2005
- Box
- 5188
Document Images
We believe that instituting these arrangements, with
or without capital investments, is a sound move for
your Company. The sale of American-made cigarettes
abroad has been declining in recent ~years due both to
import restrictions and the vigorous efforts of some
foreign producers to manufacture acceptable ciga-
rettes of their own.
Our financial statements at December 31, 1955
reflect a modest decline in working capital. This was
due principally to three factors: first, our investment
in Philip Morris (Australia) Ltd.; second, the pur-
chase of a block of our 3.90% preferred stock; and,
third, the transfer to current liabilities of $1,600,000,
the first sinking fund installment on our debentures.
The increase in our current assets occasioned by the
accelerating pace of our business as the year drew to a
dose, brought an increase of $22,300,000 in our notes
payable. However, our projected borrowing in 1956
is well below our established bank lines, and we see
no need at this time for any public financing.
We have no plans at present as to the disposition of
the large block of the 3.90% preferred stock other
than to apply a portion of it each year to the sinking
fund, but it was offered at such a discount that its
purchase seemed well advised.
The kinds of machinery and equipment we use and
the types of buildings we construct are as available to
eve~j other cigarette manufacturer as they are to us.
The media in which we advertise also welcomes every
other cigarette advertiser. The 1,300,000 selling out-
lets throughout the country stock all brands of cig-
arettes. If our manufacturing is more efficient, more
(TOP R~OHT) Research and development activities bt our
modern Richmond laboratories are reviewed by the Board o]
Directors. (Le/t to right) Research Scientists d. E. O'Keefe,
Dr. Robert Sellgman, Dr. C. V. Mace and Research Vice Pres-
ident Dr. R. N. DuPuis with Board Chairman A. E. Lyon,
Director H. E. Riddell and President O. Parker McComas.
Nobel Prize Winner Dr. A. I. P. Martin is shown on a visit
to our Richmond laboratories with Philip Morris researchers
Forrest L. Gager and Dr. Robert Seligman.
Philip Morris research committee: Parliament Brand Man-
ager Hugh Cullman (back to camera). Lea] Vice Presi-
dent W. 1-1. Hatcher, Executive Vice President loseph F.
Cullman, 3rd, Vice President George Weissman, Research
Vice President Dr. R. N. DuPttis. General Factories Super-
visor A. C. Britton and Chic] Engineer C. E. Grosser co-
ordinate product and package research and development.
T!54232638
skillful, more quality conscious, it is because of our
people. If our merchandising is more creative, more
energetic, more effective, again, it is because of our
people.
We therefore recognize as a fact that our only per-
manent competitive advantage in the cigarette industry
must be people, for whom we have to compete with
all industry. It has been repeated time and again that
we believe, "People, not machines, are responsible for
the success of our business." In order to attract and
retain competent and loyal people, your Board of
Directors recommended the adoption of a deferred
porfit-sharing plan for substantially all of the Com-
pany's 4,700 employees, a restricted stock option plan
for key personnel and the discontinuance of a long-
standing cash bonus. These recommendations were
approved at a special meeting of stockholders in No-
vember by the largest affirmative vote in the Com-
pany's history.
Philip Morris has long recognized the responsibilities and
benefits of being a good citizen. Here 1ohnny Philip Morris
is shown giving a helping hand loading relle[ cigarettes
stricken Connecticut flood areas.
The salutary effect of our profit-sharing program
on the Company's employee and labor relations was
acknowledged in a public statement by Mr. S. E.
Blane, First Vice President of the Tobacco Workers
International Union, who commented, "With the ad-
dition of the profit-sharing plan, which looks like a
possible answer to the guaranteed annual wage and
which covers even seasonal employees, we know we
have the best security program in the industry."
Your management has been well aware of the need
for having available competent replacements for exec-
utives approaching retirement age. In order to assure
a continuity of experienced top management, your
Board of Directors, early in 1955, elected the follow-
ing:
Joseph E Cullman, 3rd, Executive Vice President;
John E. Cookman, Vice President in Charge of Or-
ganizational Planning and Controls; Dr. Robert N.
DuPuis, Vice President in Charge of Research and
Development; Chandler H. Kibbee, Secretary and
Treasurer, and Robert P. Roper, Vice President in
Charge of Industrial Relations.
It is with a great deal of sorrow that we report the
passing of Mr. Joseph E Cullman, Jr., during the
(Contimted on page 15)
(xnovl~ LEFT) Tobacco Workers International Union First
Vice President S. E. Blane and International Association of
Machinists Bus[ncss Representative A. A. Thompson congrat-
ulate Philip Morris President O. Parker McComas on the
introduction o~ the new Philip Morris Prolit-Sharing Plan.
(LI~Fr) President O. Parker McComas h;troduced the Board el
Directors and explained the neap Profit-Sharlng Plan to more
than 2,000/actory employees at a Richmond, Va., meeting.
TI54232639
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PAI TNER SHIP
WITH THE
PEOPLE
Our extensive market research and packaging programs have been predicated
on the belief that since the consumer makes the final purchasing decision,
he can guide us in advance as to direction and selection of products and
packaging. A complex process of technical testing and consumer research
has been successfully applied to the development of the new Marlboro and
Philip Morris. It will be followed on future projects. Pictured here are some of
the typical steps from the designer's drawing board to the point of purchase.
Cooperation ~'ith ottr sapplierx was basic to our packaghtg program. In pictares below
(I. to r.), researcher .t~anes Giso.di, George Weissmaa, Vice President and Assistant to
the President. Albert Kner. head o] the Design Laboratory o] the Container Corpora-
Hidden camera records the pattern
o] consamer shopping at a super-
market clgarette display.
Researcher interWmt's
a supermarket to delerm~tl˘ her re-
acHon to the he: package.
T154232641
Truck driver tells researcher which
product and package he pre]ers.
Philip Morris Brand Mtmager John R.
ment ~,'ith designers Willh~m Gunn (left), and Egmont Arens (right).
lion o] America and his assistaat, Lony Rtthmann discuss the final test resnlts on vadotts
package dedg:~s. In addition to consttnler attitttdes and technical tt~easttrements, the
practicality and quality o] printb~g reprodttction on each design was care]ully considered.
Constnner selects new Philip Morris carton
in stackiag tests agab~st competitive braads.
TI54232642
New advances in scientific instrumentation
made possible extensive laboratory and screen-
ing work on our packages before the new de-
signs were submitted to consumer testing. (Top
to bottom): A camera records the eye move-
ment as consumer views the package; the angle
at which the carton becomes identifiable is
measured; impact and recognition values of
the package under varying conditions of light
and speed of viewing are measured; profes-
sional panel inspects packages for design val-
ues; and, subject tests new package against the
field for visibility and legibility ratings.
T154232643
early paxt of last year. Mr. Cullman, who was a Direc-
tor and Chairman of the Executive Committee,
devoted many, many years of wisdom and sagacity to
his industry and his Company. Mr. Howard S. Cull-
man, Honorary Chairman of the Port o[ New York
Authority, President of Cullman Bros., Inc., and a
tobacco industry leader for many years, was elected
to fill the vacancy on the Board of Directors caused
by the death of his brother.
Mr. Leonard G. Hanson, Senior Vice President and
Director, will retire on March I, 1956, having reached
the statutory retirement age. I wish to acknowledge
on behalf of myself and his associates, his distinguished
and unselfish devotion to your Company for 32 years.
His long experience and seasoned judgment will con-
tinue to be available to Philip Morris in his capacity
as a member of your Board of Directors.
One o! the most tamous living Araer~can~, Johnny Philip
Morris, was on hand to greet stockholders at the annual meet-
ing in Richmond's Jefferson Hotel.
In conclusion, let mc note the significant facts that
the downward sales trend of both the industry and
you~ Company was reversed during 1955, and that the
effects of the recent attacks upon/the industry are
abating. These factors coupled with the many changes
we have made both in our products and our methods
augur well for our future. The progress we have made
--over 50% of our current sales are in products
which we did not have three years ago--is possible
only because we have entered into a partnership with
people: the people who buy our cigarettes, the people
who make and market our cigarettes, and you, the
28,000 stockholders who have an equity of approx-
imately $30,000 behind each employee in this firm.
As we seek to strengthen further our present brands
and plan for new projects, we are confident that the
people and procedures that enabled us to "Change
our Dress" in the last three years will continue to
prove productive.
President
February 24, 1956
15
TI54232644
