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PROXY IMPORTANT NOTICE-This proxy is forwarded by the Management, who request, if you will not be present at the meeting, that you fill out, sign, fold and return this proxy in the enclosed stamped addressed envelope. -1 -i The undersigned hereby appoints PAUL M. HAHN, JOHN A. CROWE and A. LEROY JANSON proxies, with power of substitution, to vote at the Annual Meeting (including adjournments) of Stockholders of The American Tobacco Company, to be held April 2, 1958, for the election of directors, on Proposals A and B referred to below which are described in the Proxy Statement, and on any other business that may come before the meeting, with all powers the undersigned would possess if personally present. IF A CHOICE IS NOT SPECIFIED BELOW, THIS PROXY IS TO BE VOTED FOR PROPOSAL A AND AGAINST PROPOSAL B. Management recommends a vote FOR Proposal A. ^ FOR PROPOSAL A ^ AGAINST Management recommends a vote AGAINST Proposal B. ^ FOR PROPOSAL B ^ AGAINST A majority (or, if only one, then that one) of the proxies or their substitutes acting at the meeting may exercise all powers hereby conferred. Dated : . . . . . . . . . . . . . . . . . 1958 0!4TV #,0tcryCi00/~T Company will fill in V V .......... Preferred ... .. ... Common .. . ... . (Stockholder should~sign here) ~ ~ * -- [L. S.] When signing as attorney, executor, administrator, trustee or guardian, please give your full title as such.

NOTICE OF DIEETING Flemington, N. J., March 1, 1958 The Annual' 14'Ieeting of stockholders of THE AMERICAN Tot3ncco CoINzPnNY will be held at the Hunterdon Theatre, corner of Route 69 and Church Street, Fleminglon, New Jersey, at one-thirty o'clock in~ the afternoon (Eastern Standard Time) on Wednesday, April 2, 1958, for the following purposes: (ll) to: elect Directors; (2) to consider and' vote upon a proposal (designated Proposal A and set forth in the following proxy statement) to elecu independent auditors for the Company for the year 1958, whichproposal, has been recommended by the Management; (3), to consider and vote upon, ai proposal (designated Proposal B and set'forth in, the following proxy statement) made by three stock- holders; and (4) to transact such, other business as may properly come before the meeting. The stock transfer books will not beclosed, but holders of Preferre& St'bck and Common Stock, to be entitled tovote, must be holders of record at thealose of business on March 3, 1958. JOHN W. HANLON, Secretary

a PROXY STATEMENT The enclosed proxy is solicite& by the Management. The proxy may~, be: revoked by notice in writing given to the Secretary at any time before being voted. Proxies in the fo= enclosed, properly executed by stockholders and duly returned to the Management and~ not revoked, w.illl be voted and, where a specifi- cationis made on the ballot provided therein, will be voted in accordance with such specification. Attendance at the meeting does not serve to revoke the: proxy. The number of shares of each class of voting seeurities of the Company outstanding, is: Preferred, 527;831 shares; Common, 6,512,522 shares. The Preferred Stock is entitled to four votes per share. The Common~ Stock is entitlled to one vote per share. The record date for the determination of stockholders entitled to vote at the meeting is the close of business March 3, 1958. ELECTION OF DIRECTORS The Boardl of Directors consists of nineteen members who are elected to hold office until the next Annuall Meeting or until their successors are duly elected and qualified. It is intended that proxies in the accompanying form will' be voted for the nominees named beloav. These nominees, with~ the exception of George L. Turner who was elected a director on February 4, 11958, are members of the present Board and have served as directors of the Company for the periods commencing with the dates set after their respective names. The Company is informed that these nominees were directly or indirectly the beneficial owners of outstanding securities of the Company at the, clbse of business on February 4, 1958, as set forth after their respective names. Name Year First Positions and Offices with Company Elected and Principal Occupation (a) Director Common Preferred Orpheus D~ Baxalys Vice-President and I1^Ianaging Director, 11940 2;23062 Thomas P. Connors John A. Crowe A. Gordon Findlay Charles Ganshow Jolin, G. Haoer, Jr. Virgil D. Hager Paul N1. Hahn Hirarn R. Hanmer Harry L. Hilyard John R. Hutchings, Jr. A. LeRoy Janson The American TobaecoCompany of the Orient, Inc. (b )' Vice-President in charge of Public Re- 1951 700 lations Director of Traffic 1946 300 Senior Vice-President 1931 800 105 Vice-President, American Cigarette and 1953 2,005 Cibar Divisiony and Chief of Ciaar SalesVice-President, American Cigarette and 1951 11,000 Cigar Division, and Deputy Comp- troller Manager of Louisville, Ky., Ciaprette 1956 200 7 Factory Vice-Presidenty Manufacture1955190 President! 1931 4„784 Director of Research 1938 300 Vice-President and Treasurer 1944 750 President', American Suppliers, Incorpo-1951 500 rated (b) Vice-President and Comptroller 1948 418 2

Name Year First Positions andlOff'ices with~CompanyElected andlPrincipall 0ecupatfon(a)DirectorCommon Preferred Ferdinand Mall,raf Director of Purchases, 1957 100 Siltis E. Strir;klandl General Manager of Stemmeries, Corn- pany and American Suppliers, In- corporated(b)~ 1957 100 George L. Turner Vice•President, American Suppliers, In- corporated(b) 195ou 150 Robert B. Walker Vice-President and Director of S'ales 11955 410 George A. Wilkinson Director, Tax DepartrnenY 1957 275 William B. Young Assistant to the Senior Vice•President 11956 600 (a), The positions andl offices listed after the name of a nominee are withtheCompany;, unless otherwise noted, and are his principal occupation. (h)~ Affiliated company engaged in purchase and handling of 1Laf tobacco- The Company is also informed that none of the nominees was directly or indirectly the beneficial owner on February 4, 1958, iof outstandingsecurities of: subsidiaries of the Company, other than directors'qualifying, shares. George L. Turner was elected a director onFebruary 4, 1958. Mr. Turner has been a Vice-President of American: Suppliers, Incorporated, a principal leaf~-buying, subsidiary of theCornpany; since 1lIarch 1, 1957 and for more than four years prior t'heretowasAssistant to the Executive Vice-President of that subsidiary. He has been employed by the Company or American Suppliers, Incorporated for rnorethan, 42years. In the event any nominee is not a candidate or is unable to serve as a director at the time of the election, which is not now expected, it is intended that the proxies will be voted for any nominee tivhoshall be designated by the present Board of Directors to fill such vacancy. Proposal A ELECTION OF' INDEPE\DE\T AUDITORS The Management proposes and recomanends theelectiom by thestocl:holders at t'heAnnual Meeting of Messrs. Lybrand, Ross Bros. & Montgomery as independent auditors for the Company for the year 1958. In line with thisrecommendation the Management intendst& introduce at the forthcomingAnnualAleetingthefollowing resolution (designatedl herein as Proposall A) RESOLVED, that Messrs. Lybrand, Ross Bros. & Montgomery be and they hereby are elected'the independent auditors for the Company f©rthe year 1958. This firm of certified public accountants have been for over 25 years, the independent auditors for the Company. In accordance with the Compan~-'s customary practice a member of the firm will attend't'he~Unual .lleeting andl respond to qlucstions which may be asked by stockholders. TliellLanag,ement recomrnends that youvote, PORProposrzl A. Proposal B RESOLUTION PROPOSED BY TIIREE STOCIiHOLDERS The Company is informed that Le~cis D. Gilbert, a recordi holder of 80 shares, of Common Stock, whose add'ress is11G5 Park Avenue, New York 28, N. Y., and/or JoltnJ.Gil'bert,a record~ holder of 80 shares of Cornmon Stock, whose addr.ess is 1165 Park Avenue, New York 28, N. Y., and/or 3

John Campbell Henry, a record hold'er of 400 shares of Common Stock, whose address is 5 East 93rd Street, New York 28; Ni. Y., intend to introduce at the fortheoming Annual Meeting thefollozving, resolution (designated! herein as Proposal B) : "RESOLVED: That the stockhold'ers of The American Tobacco Company, assembled in annua1 meeting in person and by proxy, hereby request that the Board of Directors take such steps as are necessarv to assure that at alll eleetionsof directors the stockholders shall have tlheright of cumulative voting, that is to say each stockholder shalli be entitled to as many votes as shall equal the number of votes which he would be entitled toi cast'for the election of directors, wit'hrespeet to: his shares of st'ockmultiplied by thenurnber of directors to be elected, and he may cast all of such votes for a single candidate or maydistribute them among the number to be voted for, or any two or more of themi as hemay see fit." The proposers of this resolution, 11!I'essrs. Gilbert, Gilbert and Henry, have furnished the following statement setting forth the reasons advanced by them in support of their proposal: "When last introd4iced in 1953, this resolut'ioni received the support! of 3,314 owners with 223,920 votes. The need for cumulative voting at American Tobaccois apparent because of the continued insisteneeof the management on an all-management Board ofDirectors, in contrast to Lorildard and even R. J. Reynolds. Cumulative voting is now mandatory under the law of 21 states, Northi Carolina being the latest so: toact."Believingasit does in the principle that theCornpany is best managed, byd'irectors giving theirenti'retime and effort to its service, the M'anagement is of the opinion that Proposal B does not serve anyusefull purpose, and that it would not be in t'1ie, Company's interest to initiate steps to provide for cumullativevoting, Substantiallyidentical proposals were introduced byt'hesame proposers at five consecutive annual meetings from 11949to1953. That: the great majority of the stockholders share the A'IanagEment's opinion is evidenced by the fact that each of theseproposals was overwhelmingly rejected! by the stockholders. At the 1953rneeting, when the proposal was last submitted, the stocleholderscast! 6,355,552votes (96 c/n )against theproposal.TJte?tlanabem~entrecommends th,atyou a~oteAGAINST Proposml' B. The Mianagementis not' aware at the date: hereof of any matterthat, is intended! to be presented at this meeting other t'han the election of directors and Proposals A and B. If any matter not known at the date hereof is properly presented for action at themeeting, it is intended that the persons named in the proxies will vote thereonaecordingto tiheir best:, j;2idigment. REnIUNERATION Remuneration ofDirectors and017icers. There is set forth in the, following,tabulatiiony on an accrual basis, all direct remuneration paid by the Company and its subsidiaries to the fol7owingpersons, for services in all capacities whil'edirectors or ofHcersof the Company during its last fiscal year: each director, and each of the three highest paid o11'ucers; oftheCompanvwhosedirect aggregate renrtmeration exceeded $30,000;and alll directors and officers of the Company as a group. Estimated annual retirement benefits to: the same individuals at normal retirement date under theIletilrement Plan for employees adopted by the stockholders at the 11949Annuall 1L1ceting arestated! in Column (4). 4

(4D' Estimated annual (I) Name of individlral or identity of group (2) Capacities in which remuncration wasreoeived (a) (3) Aggregate remunerationl(b) retirement benefit arnormal retirement date Orpheus D. Baxalys Vice-President andl Managing Director, The American Tobacco Company of the Orient, Inc. $, 56,663 $17,9M Bowden Alfredl F and Vice-Presi- Assistant to the Ptesident(c) 54 735 16;250 . Thomas P. Connors John A. Cro%re(e) , dent inchar~e of Public Relations(d) Direatorof Traffic Vice-Piesid'ent andCliiefof Dlianufacture(c), , 38,498 133,( 70 11,625 18;125 John S. D'owd(,-)~ and Senior Viee-Ptesident(d)Executive Vice-President, American Suppliers, I t d 69,992 18;309 A. Gordon Findlay(e) ncorpora e Vice-Piesident, American Cigarette and Cigar Division, and Chief of Cigar Sales 45, 4'14 14, 7 50! Charles Ganshow(ie) Vice-President,, American Cigarette and Cigar Division, and Deputy Comptroller 50,327 11,299~ John G. Hager, Jr. Virgill D. Ha~er Manager of Louisville, Ky., Cigarette Faetory Assistant to the Vice-President in charge of Manufacture i c) and Vice-President, Alanu- facture(d) 34.665 54,077 11,1162 16,254 Paull Mi. Halini(e): President 201,149 25;00& Hiram R. IIanmer Director of Research 55,244 14,531 H'arry L. Hily.ardl(e), Tieasurer(e)and Vice-President! and Treas- urer(d)~ 67,4192 12,465~ John R. Hutchin'p_ Jr. Vice-Pl-esident(f)! and President, American Suppliers,, Incorporated 66,242 11,4411 A. LeRoyJlanson(c) Comptroller(c)i and Vice-President and troller (A) Com 67,492 16;891 Ferdinand Mallgraf Silas E. Strickland'i e)~ p Director of Purchases General \IanaRer of Stemmeries, Company and American Suppliers, Incorporated 41,328 33;4101(h) 9:589 12;652' Robert B. Walker Director of Saleshc)i andi Vice-President and 57,577 171000~ George A. Wilkinsoni Director of Sales (d )Director, Tax Department 43,328 9:813 William B. Young(e) Assistant to tlieVice-Pr~esident in chargeof D`lanufacture(c), and!Assistant to the Senior 43,078 83984 Directors and Officers as a group Vice-President (d) Directors and Officers as a group 1,291,959 (a)Capacitiesreferrod to werewit'h The American~TobarcoCompany; unless otlierwieeindioated. American Suppliers. Incorpo- rated and The .1'merioanTobacco Cuntpanyof theOrie-r% Inc. are affiliated companies enp-agedl in purchase and handling of leaf! tnliacco. (b) i'ncludcs undeferrrd noneontingenti portion of incentive eompensation for 1937 under Article XII of the By,Laws. (c)Priorto:1'pril 4, 1957. (1d) Commencin~April 4, 1957. (0Alsooflieer ofafliliate.d company or companies. (;f) Prior to clootioni asPresident on Ularali1, 1957. (~g) Retired Jianuaiy31, 19,~8. ('h)Remunerationshownisfor period sub:equent to election as a director ef[ectiie':1larch 1, 1997: The deferred'~ portion ofl incentiv-ecomPensation u2tder Art~iclle hIII of the By-Laws for 1957 (the first year for whichi it is provided) payable to~ each participant in tien eq;ual annuall contingent installments duiriina the ten~ years following the close of the year in which his employment by the Company terminates, was as follows for the directors and officers referred to in the above table: Orpheus D. Baxalys, $4,413; 5

Alfred F. Bowden, 87,910; Thomas P. Connors, $,2,998,; John~ A. Crowe, 564,920; John~ S. Dowd, $9,992;A. Gordon Findlay; $3,539; Charles Ganshow, S7,327; John, G. 111ager, Jr., 82;665;Virgil D. Hager, $8,327r ; Paul Al. Hahn, -81,149; Hiram R. Hanmer, $7,994; Harry L. Hilyard, 89,992; John R. Hutehings; Jr., $9,992; A. LeRoy Janson, $9,992;Ferdinand Mallgraf, 56,328; Silas, E. Strickland, $3,081; 1'iobert B. Walker, $8,327; George A. Wilkinson, k6,328;William B. Y'oung, $6,328; andDirectors and Officers as, a group, ~265;972. No amount w,as set aside or accrued during, the Company's last fiscal year for pension or retirement benefits proposed to be paid under any existing, plan by the Company or any of its subsidiaries to any officer or director of tlheCompany. The Retirement Plan for employees¢overs approximately 17,600~ regularfwll-timeemploy.ees ofthe: Company and its subsidiaries. The aggregate remuneration for the fiscal year 1957, fromtheCompanyand its subsidiaries, directly or indirectly, on an accrual baisis, of all the directors and officers of the Cornpanyas a group, was approsinlately fourteen one-hundredths of ll o of theCornpany's consolidated net sales. MISCELLANEOUS Any stockholder mal:ing written request therefor to theSecr.etary oflthe Company will be furnished a summarv of theAnnual \Ieeting which will be prepared after themeeting, has been held. Conaments orsuggestions by stockholders with regardl to the Annual Report are: welcomed, as they arewith regard toalll other mattersafE'ecting the Company's interests. Flemington, N. J., is reached by the Lehigh VallleyRailroad. The present train schedule, which is subject to change and should be confirmed~ is as folloNcs: Leave Pennsylvania Station (33rd Street! and! Seventh Avenue, New York, N. Y.), 10:55 A. M. ArriveFlemington Junction 12:03 P. M. Leave Flemington Junction 5:2-1P. M. Arrive: Pennsylvania Station 6:40 P. M. The Company will procure transportation from New York toFlemungton by railroadand return by railroad or, if expresslyreguestcd, return by bus, at Company, expense for any stocl.holderof record desirous of attending the meeting, on his notifying tiheSecretary in writing at! 150! East 42nd1 Street, New York 117, New York, not latert'han Miarch 26, 1958, that he ~6shes such transportation obtained. If you d'onot plan to attend, you, are urgently reqpested toesecutetiheenclosed proxy and mail ittothe Company promptly. Expense of Solicitation. Tlreespense of the solicitation ofprosiesforthismeeting, including the cost, of mailing, will be borne by the Company. In addition to mailing copies of this material tostock- holders, t'heCompany~cill request persons iti-hohold stock in their names or custody oriir the names of nominees for others, toforivaird copies of such material to tllosepersons for whom they hold stock of the Company and to request authority for the execution of the prosies.To the eYtent! necessary in order to assure sufficient representation at the meetliaig, oflicersarld some regular emplbyees of the Company and, at aniestimated' cost of abotat 51411.000, approximately 6 employees of P11i1lipG. Cameron Company will request the return, of proxies by telephone, telegram or in person. The amount of the espenseto be borne by the Company NN-il1 depend upon thevolumeof shares representcrd by the pr.osiesreaeived promptlvin response to, the Notice of llleetiiing. If proxies are not received promptly, it may beneaessary for the Company to sendl telegraphic solicitation totliose stockholders ichohave not responded. Stockholders who do notintendl, to be pne,ent at thelleetingareurged to send, ini their Proxies without delay. Prompt r(-pon,~~e islielpful. atld s-onrcooheration wiill be appreciated. February 6, 1958. 6

ANNUAL REPORT For the year ended December 31, 1957 HIGHLIGHTS . . . . . . . . . PRESIDE\ T'S LETTER . . . . . . . OPERATIONS AT AGLANICE . . . . . CONSOLIDATED STATEMENTS OF INCOlIE' . 2 . 3 . 12 AND RETAINED EARNINGS . . . . . . 13: CONSOLIDATED BALANCE SH'EETS . . . . . 14 NOTES TO STATEMENTS . . . . . . . . 16 AUDITORS' CERTIFIC ATE . . . . . . . . 17 TE\-TE:1R FINANCIAL REVIEW . . . . . . 18 DIRECTORS AND, OFFICERS . . . . . . . 20 EXECUTIVE OFFIICE, 150 EAST 42ND STREET. NEW YORK 17

HIGHLIGHTS V ~~Ji.fi d' ".E'ZLCCZ, L 4~,(Z,~2(J. 1957 PER COMMON SHARE Net income . . . . . . . . $8.28 Dividends paid . . . . . . . 5.00 Net sales . . . . . . . . . . . $1,098,092,746 lhcome, before taxes on ilncome . ... 118,604,650 Net income . . . . . . . . . . 57,094,650 Dividends paid (cornmon and preferred) 35,729,596 Portion of net income invested! in assets used' in the business and to provide for debenture sinking fund requirements . 21,365,054 Current asset's, December 31 . . . . 740,482,648 Current liabillitiies, December 31 171,137,745 Net working capital, December 31: ... 569,344,903 Number of stockholders at December 31: Common 86,998 Preferred 7,187 $1,091,206,358 111,351,800 51,688,800 35,729,596 15,959,2041, 724,423,039 1157,842,406 566,580,633 84,250, 7,140, 2

THE PRESIDENT'S LETTER February 4, 1958 To Our Stockholders T HIS report coti-ersolperatiions, of The American TobaccoComhanN .~, includinbconsolidated subsidiaries, for 1957. Financial statements for J. IN,it &- Sons Limited and The American Tobacco Company of the Orient, Inc., both wholly-owned subsidiaries, are consolidated with those ofthe harenro company for the years 1957 and 1956 throughout this report, the 1956~ statements having been revised for comparative purposes. Net income in 190-7 was the highest in the history of the Company, SK;094,G50as compared! with ,51,688;800 in 1956. Dollar sales were S1,O98y092„746as compared with $I,09:1,206y0358 in 1195G. Domestic unitcigarettesalesim 1957 «-.erelbNverthan in 1956;export i tati-freei unit sales of cigarettes of domestic manufacture were higher; and salles of cigarettes manufactured by J. Wix & SonsLimited were higher. Sales In PALL MALL and Lt'cta' STxir.~ your Company has two of the three laiirgest-se1ling, cigarette brands in the United States, according, to inele- henelent surveys. In 11957, for the fourth successive year, these brandb accountedforincr•eased percentages of the nonfilter hing-size and standard- size markets, respectively, although these markets continued to, decline. In 1957 your Company's nonfilter brands represented about 451,-~0 of all nonfilter cigarette! sales in this country, accord'hng to independent surveys which, estimate that nonfilter brands accounted for about 601/-,, of total cigarette sades in the U. S. The Company's nonfilter brands incliude PALL 1IAr t. fair and away the nation's leading Iting size cigarette;~ H1:ImI:RT 'hal.EY'1'0N, a1l-zo~ lt~in,~~ size:~ and LUCKY S`rR~1Kr:, perennially among the lead- in,,, standard-size brands. In June 195T, your Company increased the net whoie'sale prices of its nonfilter cigarette brarrcls by approtiimately 34~ per thousand. By virtue of the introduction of a second filtier brand, IJi'r P_aR:a~nl.; the combined sales of your Company's filterciourettes, FIM't'.x TiPT'AIZM-roN and Hi'11 PaRADE, showed a greater percentage of increase in 1957 than the 3

filtez~' market as, a whole; as indicated byindependent estimates. This per- formancewas encouraging in view of the introduction of additional com- petitive filter brands. Your llianagement recognizes the, desirability of increasing our per- centage ofthegrowing filter cigarette market; a number of ways and means to this end~ are now in progress. Last year your Company's cigar brands showed a small'i decrease from their 1956 unit volume. In the d'ornestic field, EL Roi-TAN continued as America's largest-selling 10~ cigar. In the clear Havana field, LA CoRo;vA, ANTONIO 1CLroPATRA and BocK continued to comprise the largest-selling Bonded~ ClearHiavana~line.YourCompany:continued! to add new shapes and new packings t& its cigar linesini 1957; further improvements in these directions, as«-.e12 as improvements in, manufacturing, techniques„ are an- ticipated in 1955. The latest U. S. Government figures, available for 1957indicate that industry sales of smoking and chewing tobaccos, continued to decline as theyhaveforsevera1 years. However, your Company's principal smoking tobaccobrands-H ALF' AND HALF and "BULL"DuRxAmi-showed increases, inunit volume during 1057. Price increases on your Company's smoking tobaccos permitted realization of a more nearly normal profit margin in the face of rising costs. 700 0 1948~ 1949 1950 1951 1952 1953~ 1954 1955 1956' 199'

Earnings In 1957, for the third consecutive year, net income rose to a new record: level, being, $57,094,650 compared; with S51I,688,800 in 19-06. This repre- sents an increase of 10.46;c over 1956. Net imcome per Common share in 1957 amounted to 58.28 compared with S7.45 in 1950. Taxes on income amounted to 59.44 per Common share. Dividends During 1957 dividlends,of j5.00pershare«-.ere paid on the Common stock, consisting of four regular quarterly dividendsof $1.00~ each and an extra dividend of $1.00. On January 28, 190-8, your Directors votedl the 210th dividend on the Common stock of your Comhany, consisting of theregulai• dividend of Sl!.00 per shareand, in ad~dition, an extra dividend of $1.001 per share. This maikes a total, dividend of $2.00 per share payable on 1'Iarch, 1, 11958, to stockholders of record February 10, 1i958'. Dividends have been haidoni the Common stock every year since 11904. MILUaNS OF DOLLARS 120 110 100 90 80 70 60 50 40 30 20 lo 0 1948 1949 1950 1951 • I klu d h 01 ii w ho lyvwn ed s u bs I d 1 a n ee 1952 1953~ 1954 1955 1956' 195T INCOME BEFORE TAXES, a TAXES AND NET INCOME 11

Consolidation of Subsidiaries The Company has adopted thepoliicyof including all wholly-owned sutb- sidiailries in i~tsfinancial statements, and theref.©rethefhnanciiail statements for J. Wix ~,~ S'onsLimited~ and The American Tobacco Company of theOriient„ Inc., both, «hoi1y-o«-nedl subsi~diaries, have beeni consolidated with those of the parent compan5. The financial statements for. 1956, wherever they appear in this relaort,, have,been revised for cornparativepurposes. J. Wix &Sons, Limited is, an English cigarette manufacturer, its principal brands being KENSITAS Extra Size and hEtisITAs Filter Tip Cigarettes, Thisnewl.y-consolidated subsidiary accounted for alapi-otiimately 1r-ofnet incomefor1957. The, American Tobacco Cbmpany of the Orient, Inc., is a leaf-buyingsubsidiar5=whicli purchases tobacco for the Comhanyin Turkey and other Middle Eastern markets. Finances Cashi on hand and ini banks at the year end was S22,07 1,526 compared! with $23,418,021 at the end of 1956. Notes payable to banks at December 31., 1957, were $92,350;0000 compared «-ith, S80„000,000 at the end of 1956. The increase in notes payable to banks, was accompamied by an increase ini MILLIONS OF DOLLARS NET INCOME, DIVIDENDS AND INCOME REINVESTED •10cIAK altw~o!y-,owned ~subveibna. III

leaf tobacco, manufacturedl stockl, operating supplies, etc., of$1(i,`?G4,950. Funded debt was reduced~ by $13,813,000, representing debentures retired through theoperaition of the Sinking Funds~ Such retirement of debentures and the retention of earnings against future needs have con- tinued to irnprove the relationship betweeni funded debt and net worth. This improvement is evidenced by the fact that at the year end fund'ed debt was on1y3V' of net «-orth,, «liilea~tDecember 31, 1948, funded debt was 88';-'c of net worth. On August 7, 1957, an increase of 211 in the prime commercia1', in- terest rate occurred, thus raising theratefrom 41/-'c to, 4 i~;; ;'o, which latter ratewas, reduced again to 4 ~~ during the last half of January 1958. Theprimecomrnercialrateis the rate extended to: borrowers with the best credit ratings. It is ahpropriatetopoint out here that approsimatel,y $1190: millhoni of the funds originally obtained through the saleofdebenturesiscurrentlly~ -beingused in our business at an a~.erageinterest cost slightly in excess of 3~ ,,. This isparticularlyworthyof note in view of the higher prime commercial rates mentioned above. Ini the absence of unusuall developments, youri1Tanagement does not anticipate any need fornewf7nancingin the foreseeable future. Leaf Tobacco Your Management belien-estha.~t, in~ the long run, quality determines the success of any product„ and cigarettes are no exception to this rule. Accord- ingly, your Company continues to, follow its, long-establlished policyrofpur- chasing, the better grades, of tobacco in the firm belief that "Quality of prodtct is,essential to continuing success." Government acreage restrictions and price supports, for flue-cured and Burleytobaccos, were again in effect during 1957. The production offlue- cured tobacco, partlybecauseofa`?0 ;"r reduction in acreage allotments and unfavorable weather conditions; was approximately 31 r(less than in 1I956', and the lowest since 1943.HoWever, carry-oti-er of Iprevious years' crops was at ane«-. peak, so that total supplies «-ereadequate, although down 5"',~from 11156. Acreage,allotments for 1958 are practically the same as for 1957. The auction prices for all types of flue-cured tobacco during; the 1957 season averaged 55~herpound, about 71~ higherthan~ in 1956 and a new lril,h for this type of leaf. The averaigeGovernment support price for the1957 flue-cured cropiwas5©_8(cornpared with 48.9~ini 1956. As of the end of the year neariyall, of the Burley crop had been sold at auction. Production, of this typeof tobacc& was about 31' below 1956. 7

Support prices for the 1957 Burley crop averaged 51.7~ compared with48.1~ in 1956. However, the average of auction market prices through the end of theyear forth2s type of'lleaf was 61.5y; about 26' lower than the average for the comparable period' in 1956. During the pre-auction season your Company took advantage of the opportunity to buy additional quantities ofhigh-qualit'y leaf tobacco~ at advantageous prices. Theseadditionall purchases are reflected in slightly higher leaf tobacco inventories at the end of the year. Excise Tax On June 20, 1957, the House of Representatives passed a comprehensive eticise, tasbi11 (I H. R. 7125)l incorporating as urged bvthe cigarette manu- facturers, a mandatory deferred payment and return system for tobacco; exciseta_Yes. The billl provides for a return system of tax payment on tobacco products with a prescribed periiod~ of not less than seven days, be- ginning not later than August 4, 1958, and is, awaiting considera~tion by the Senate Finance Committee. Capital Expenditures Capital expenditures during1957 were somewhat higher than they have been for the past several years, totaling$10,3'?9;000. The largest single 11, NET WORTH COMPARED WITH LONG-TERM DEBT 1948 1949 1950, 1951 1951 1953 1954 1955 1936' 1951' 9rldudesall hollyawned suCisidaneS 8

expenditure was forquality--control equipment of the most modern type, designed to maintain utn2formityand consistent high qualituin the: produc- tion of our cigarette brands. Net real estate, machinery, filtures, etc., increased fromi $52;216,2811 at the end of 19561toS5S;154,1i75 at the end of 19:57. Depreciation charged tolcost and expense amounted to $4,194, 785. Advertising and Sales Promotion As the! number of actively promoted~ cigarett'e brands has increased, our advertising and sales, promotioni efforts have also, increased in order to help the Cbmlpany's brands to compete effectively. Advertising campaigns vial magazines, newspapers, radi'o and television, car cards, billboards and other media are under continuail study and review, with the! object of reaching the smoking public with our sales messag~es as effectively and ecconomicall~~-~ as possible. Our Sales Organization supplements these media schedules by supply- ing, merchandising aids to retail outlets, by direct sa7npling of consumers in the field, and by securing wide distribution for our brands. Your Com- pany's Sales Organization h~als:been st'rengthened in recent years not only in; number but in the variety of techniques, and materials used for sales promotion at the retail level. Smoking and Health Siince, my last report, anti-cigarette charges and publicity attending them have continued, chieflY under the same kinds of auspices and liargelY repeti- tive. However, during the past year the views, of reputable scientists who hold that these charges are unsubstantiated'i have attained wider public notice. TJie statistics on wliich cv)•?•erzt a0i-eidarette, cltarges are based Izare been, challeaged on many droeoids by bndepe)ide?it scientists. Stzch possible~~. factors in lhzng cancer as, constilttntional predisposition, previous, medical hietory and various influences characteristic of today's urban environment seem to have been ignored. For example, a British statistical study showed a lung, cancer rate nine times as gr eat in cities as in rural areas among men who did not smoke. An internationiallti- known Cambridge University scientist recently stated! that the evidence against smoking~ is inconclusive, and that associa- tion is not causation. A University of Southern California hrofe~sor of 9

surgery ;who is als& a member of the American Cancer Society's National Board of Directors, testified at a Congressional committee heari~ng that a review of the total evidence fails to establish a cause:and effect relationship, that the urban-rural difference in lung cancer incidence, is not consistent with: the cigarette theory, and that there is considerable doubt whether the incidence of lung cancer is actually increasing. It seems significant that in 1955 (latest report available) lung cancer accounted for less than three per cent of all deaths among U. S. adult males, although the Census Bureau estimates, that half of all U. S. adult males are cigarette smokers. •~ Direct evideazee~ r~efztit~ing mzti-cigarette clzarges is 8egin~iixag~ to come to l iglzt. Such evidence was reported last November to the Southern MedicaI Association by H. B. Haag, M.U., Professor of Pharmacolbgy, lledicali College of Virginia, and H. R'. Hianmer, Research Director of The American Tobacco Company. Their findings were based on independent scientific studies covering the smoking, habits and mortality rates of permanent employees in nine of The American, Tobacco Company's plants. The mor- tality figures represent more than 115,000 person-years over a period of 10',4 years. These emplby-ees, smoke far more cigarettes than the general U. S. population, alhnost twice the average rate; d'efinitely live longer than aver- age; andl show average or lower-than-average death! rates for cancer or lung, cancer, for cardiovascular and coronary disease. The basic findings as to mortality rates of these employees for 1946- 19~52 were made by Drs. Hi. F. Dorn and W. S. Baum of the Ul. S. Public Health Service, which, through the Nationall Cancer Institute, hadl asked the Company's cooperation in~ permitting themi to do the research. The Dorn-Baum mor talit'y findings were supplemented and confirmed! by Haag and Hanmer for 1903-1956. Smoking habits were measured by the Institute of Statistics of the University of North Carolina. As Ha~ag and Hanmer pointed out, these studies involved no estimates or sampling errors and result in a finding, at variance «ith; previous statistical studies such a~s those of Hammond, and Horn used in the current anti-cigarette carnpaign. The authors concl'ude :"The existence of such ai population makes it evident that cigairette smoking per se is not necessarilly or invariably asso- ciated with a higher risk of lung cancer or cardiovascular diseases or with diminished longevity-." 10

Personnel Mr. John S. Dowd retired' on January 31„ 1958 from his duties asa Director of The American Tobacco Company and Executive Vice President of our principal leaf-buying subsidiary, American Suppliers, Incorporated. Mr. Dowd! served! the Company faithfully and well formore than half a century, and for the last twenty-five years was directly responsible for the main- tenance of our highi standards of leaf purchasing, in the western tobacco: regions. TheDirectors, gratefully acknowledge his, long and loyal service to our organization. Amendments to Article XII of the By-Laws effective January 1, 1957,. made by theBoardof Directors pr ovidefor the exclusion from net profits earned by the Company on which incentive compensation is based under Article XII of all gain in excess of loss (net of Federal tax applicable thereto ) resulting from sales or otherdispositiions, of land, buildings, good will, brands, trade-marks and investrnentsinsubsidiaries or othez~~corn- panies, and also provide for J. W'i1&-; Sons Limited (which is now a con- solidated~ subsidiaryll to be treated as if it had continued to be an un- consolidated subsidiary for the purpose of det'erminingsuch net profits. Stockholders' Annual Meeting The Annual Meeting of Stockholders will be held on Wednesday, April 2, 1958. Formal notice of this meeting„ together with~ the proxy and proxy statement, is enclosed with this, report. Before closing thislet'ter I shouldl like to acknowledge the manycom- munications we have received from our stockholders durimg the year. Weare especially grateful for the st'ockholders'cont'inued loyalty to theCom- pany'spi-oducts and for their efforts to promote our brands. On behalf of the Board of Directors, I am, pleased to express our appreciation for thecooheration of our customers and the loyal service rendered by ourempioyees. PAUL 'Ml. HAHN; Preside?tt 11

1957 OPERATIONS AT A GLANCE The Company received for goods it sold and' from dividends, interest and miscellaneous $1,098,990,000 Ax 6_~5 52.5% 23.9% 17.5% Taxes (excise, income, social security, ett.) $576,355,000 ~-. -, Tobacco (including applicable expenses) $262,870,000 .9% 1.9% 3.3% F 5 6 7 a IJ 14 Earnings Retained to Meet Future Needs $21,365,000 ;~- --- t~ Dividends to Stockholders $35,730,000 Bond~and Bank Interest Wages, Goods, Services, etc. 12 $9,981,000 $192,689,000

... s ~.. ...a~ ...+. a . ? w For Years Ended December 31 NET SALES . . . . . . . . . . . Cost of sales, selling, general and administrative expenses . . . . . . . . . . . . OPERATING PROFIT . . . Other income . . . . . Interest and related charges Other deductions fromi income Total deductions Income, before taxes on income . . . Fedbral and other taxes on income . NET INCOME . . . . . . . . . . . . . Retained earnings, beginning of year (includes De- cember 31,, 1955, retaiined earnings of previously unconsolidated subsidiaries, $3,809,529) . . . Cash dividendt:: Common stock, $5 per share Preferred stock, $6 per share Totall dividends . Retained earnings, end of year (Note 2) Depreciation provided and charged to costs and expenses amounted to,$a,194,785 in 11957 and $3i807,255 ini 1956. (J~~t['i. ci~iLC2ceXL7L C/UT-'~Q~G~'m,p.lL U. 1957 $1,098,092,746 969,805,141 128,287,605 897,225 129,184,830 9,980;877 599,303 10,580,180 118,604,6501 61,510,000 57,094,650 182,813,131 239,907,781! 32,562,6101 3,166,986 - - 35,729,596 $ 204,178,185 1956 $1,09'1,206,3!58 971,167.607 120,038,7511 93'5.056 120;973,807 9,134,971 487,036 9,622,007 111,351,800 59,663,000 51,688,800 166,853,9272'18! 542,727 32,562,610 3,166,9861 35,729,596 $ 182,813,131 13

As of December 31 1957 1956 ASSETS Cash . . . . . . . . . . . . . . . . $ 22;971,526 $ 23,418,021'. Accounts receivable, customers . . . . . . . . 45,180,236 44,752,151 Leaf tobacco, manufactured stock, operating supplies, etc., at average cost . . . . . . . . . . 671,380;515 655,115,5651 Miscellaneous accounts receivable . . . . . . . 950,371 1,137,302 Total current~ assets . 740,482,648 724,423,039 Investments in and' advances to unconsolidated sub- sidiaries, at amounts not in excess of cost (Note 3) 10,603,797 11,315,797 Insurance deposits and! miscellaneeus investments . 1,865,235 1,460,315' Real estate, machinery, f!ixtures, etc., at cost, less alllowance for depreciatibn, 1957, $48,497,716; 1956, $45,506,856 . . . . . . . . . . 58,154,475 52,216,281 Prepaid'expenses and deferredlcharges . 4,100,350 4,988,680, Brands, trade-marks„ pat!ents, good will, etc. . 1 $81 5,206;506 $794,404,113 14

1957 1956 LIABILITIES Notes payable to banks . . . . . . . . . . $ 92,350,000 $ 80;000,000 Loan, payable by British subsidiary ...... 835,098 Accrued taxes . . . . . . . . . . . . . 52,132,302 51,511,502 Accounts payablb and accrued expenses ..... 13,428,599 13,984,158 Dividend oni preferred stock for quarter ended De- cember 31 . . . . . . . . . . . . . 791,746 791,746 Debentures to be redeemed through sinking, fundl op- erations (Nbte 4) . . . . . . . . . . . 11,600,000 11,555,000 Total current liabilities. . 171,137,745 157,842,406 Debentures (Note 4) . . . . . . . . . _ . 179,330,000 193,188,000 350,467,745 351,030,406 STOCKHOLDERS' EQUITY Capital stock (Note 5)t Preferred, six per cent cumulative„ par value $100 per share . . . . . . . . . . . . 2,783,100 2,783,100 Common, par value $25 per share . . . . . . 162,813,050 162,81i3;050 Excess of net proceeds from capital stocks issued over par vallues . . . . . . . . . . . . . 44,964,426 44,964,426 260,560,576 260,560,576 Retained earnings (:Nbte 2) . 204,178,185 182,813,131 Total . . . . . . . . . . 1 1 464,738,761 1 + 443,373,707 $815,206,506 $794,4041,113 15

....,~_J ~c~-..,..... .. . ~'.'f~' . . .~.-.,......i......j.~.,~ a.~...~.~_J The Company has adopted thepoiicy of including in the consolidated ftinanciali statements all wholly-owned subsidiaries. Accordimgly, J. «'is& Sons Limitedli (a British subsidiary) and The American Tobacco Company:of the Orient, Inc. (!a domestic corporation operating in the Near East) not previouslyconsolidated, are included for 1957, and! the financial statements for 1956 have been adjusted to reflect this change i'ni policy. Under the provisions of the indenturerelating to the 'D'wentyYear 3riDeben~- tures, due January 1, 1968, cash dividends declared on, common stock and pay- ments,made in purchasing shares ofany- class of the Company's stock subsequent to: December 31, 1947, may not exceedl theaggregat'e of i715,000,000and consoUl dated net income earnedl subsequent to, December 31, 1947,less dividends paid on preferred stock. At December 31, 1957, approYimately~$1I70,000,000of retained earnings was free of this restriction. The net tangible assets applicable to the investments in and advances to uneon~- solidated subsid7ariesat December 31, 1957 and 1956, amounted', to$13,939,5a2 and $14,049,251 respecticel~-. Dividendsandi interest received from these sub~- sidiaries~-,vere : 1957, $605,803; 1956, $689~,957; the equity ini earnings appiicabletheretlo amounted to: 1957, $1,128,360; 1956, $1,222,146. Debentures outstanding at December 31„ 11957, comprise: Principal Amounts Redeemable WithiniOne Year* RedeemableAfter Dec. 3:1, 19'a8 Tn-enty year 3 ~„due.~pril 15„1962 Twenty year 31C„d'ueJanuary1„1J6S ... . . . $3;759M0~ 3',000M0 $ 40;826,000 45;000,000. 7.lwenty--fih•e, year 3~ o, due October 15,1969 .. 3';402;000: 52,573,000 TWenty-five year 31 ~~ , due February 1, 1977 . 1,439,000 40,931,000 $11,600.000 $179,330;000 *Estimated principall amounts toberedeemed through sinking fund operations at prices as provided by the indentures. Capitall stock at December 31, 1957, comprises: Shares Shares Authorized Issued Preferred . . . .. . 540;106 527,531 Common . . . . . .10;000;000, 6;512;522 A noncontributory Retirement Plan providingunfunded' (paly--as-you-go)benefits for employees has been in effect sinceJanuary 1, 19119. L'nder the Plan theCornpany- has the right to amend, mod'ify-or terminate! the Plan in whole or in~ part at any time. Payments mad'e undler the Plan and charged to incomeamountle{lito 5922,509 in 19d:~and S7.J0,9SI in1J56. Su~bstantially° larger annual expenditures would be required tolfiand tYaePlan. 16

TheBoard of Dia-cetorsa,ad StockltoldersofTHE AMERICAN TOBACCO COMPANY: We haveexamined theconsolid'ated balance sheets of THE An7ERI- CANTosACCO COti1PAtiYas of December 31, 1I957and'i 1956 and the reiat'edI consolidated statements of income and retained earnings for the years then ended. Our examination was made in aecordance with generally accepted auditing standards, and accordinglyinc3uded such tests of the accounting records ofthe companies and such other audit- ing paocedhres as we considered necessary ini thecircumstances, In ouropinion, based upon ouresaminatilon6, the aforementioned balance sheets and related statements of incon7eand retainedearningS present fairly the consolidated financial position of The American ToliaccoCompany- and the subsidiaries imcluded'i therein as of Decem- ber 31, 1957 and 19'56s and the consolidated results, of their operations for the years then ended, in conformity with generally accepted accounting principles applied on~ a consistent basis. LYBRAND, Ross BROS. L, MOtiTGOIMERY New I"ork, February 3l 1958. 17

TEN-YEAR FINANCIAL REVIEW I N T H O U S A N D S (except per share amounts) NET INCOME EAR NET SALES INCOME BEFORE TAXES TAXES ON INCOME MOUNT AVAILABLE PER COMMON SHARE 1948 $ 873,467 $ 70,524 $26,612 $43,912 $7.58 1949 858,996 74.327 28,652 45,675 7.90 1950 871,621 76,725 34,992 41,733 7.17 1951 942,552 80,411 47,301 33,110 5.57 1952 1,065,738' 78,352 44,283 34,069 4.79 1953 11,088,380~ 99;232 58,006 41,226 5.90 1954 1',068,579 91,056 48,005 43,051 6.12 1955 1,090,845 113',061 61,399 51,662 7.45 1956 " 1,091,206 111,352' 59;663 51,689 7.45 1957 * 1,098,093 118,605 61,510 57,095 8.28 ECEMBER 31 NVENTORIES CURRENT ASSETS WORKING CAPITAL PLANT AND EQUIPMENT (NET) 1948 $514,958 $567,883 $441,496 $41,859 1949 531,558 583,762' 450;830 43,507 1950 532,679 593;026 459,653 43,747 1951 594,544 668,234 456,056 44,248 1952 640;753 712,654 551,255 44,480 1953 651,044 725,577 548;305 46,571 1954 632,143 703,086 550;454 47;1i89 1955 656,241 727;648 555,856 49,058 1956 * 655;116 724,423 566,581 52,216 1957 * 671,381 740,483' 569,345 58,154 1s *Includes all wholly-owned subsidiaries. See Note 1 accompanying financiali statements.

C~ ON cl(~1 aPO 71Q/"21y AND ITS CONSOLIDATED SUBSIDIARIES DIVIDENDS COMMON PREFERRED AMOUNT PER SHARE 1$6 PER SHAREI RETAINED EARNINGS SINKING FUND REQUIREMENTS YEAR $20;169 $3.75 $3,162 $20,581 $ 6,555 194e 21,514 4.00 3,162 20,999 9,749 1949 21,514 4.00 3,162 17,057 9,942 1950 21,514 4.00 3,162 8,434 10,154 1951 231934 4.00 3,162 6,973 10,377 1952 25;816 4.00 3,162 12,248 11,989 1953 28',654 4.40 3,167 11,230 12,261 1954 28;655 4.40 3,167 19,840 12,532 1955 32,563 5.00 3,167 15,959 12,839 1956* 32,563 5.00 3,167 21,365 13i.144 1957* DEBTi BOOK TOTAL ASSETS 191 UNDED SHORT TERM (2) NET WORTH (l) VALUE PER COMMON SHARE (ll ECEMBER 31 $632,576 $236,069 $ 81,211 $269,335 $40.28 1948 650,507 226,375 89.694 290,335 44.18 1949 657,405 215,653 83,722 307,392 47.35 1950 734,480 205,430 149,456 315,826 48.92 1951 783,154 243,570 102,950 377,074 50..26 1952 798,870 231,266 105,107 390,332 51.83 1953 775,364 218,967 91,575 403,765 53.89 1954 801,725 206,328 101,387 423,605 56.94 1955 794,404 193,188 91,555 443,374 59.98 1956 * 815,207 179,330 104,785 464,739 63.26 1957 * Notes (11T After deducting "Brands, trade-marks, patents,, good will, etc." 19 (2)' Comprises notes payable to banks, Iban payable byBritish'subsidiaryand fundbd debt'redeemable within one year.

DIRECTORS ORPHEUS D. BAlALYSALFRED F. BOWDEN TIiO.vIAS P. Coi\NoRS JOH:V A. CROWE A. GORDON FINDLAY CHARLES GANSHOW JOHN G'. HAGER, JR. VIRGIL D. HAGER PAUL M. HIAH:.~; HIRAII R. HA\T11ER HARRY L. HILYARD JOHN R. HUTCHINTGS, JR. A. LEROY JANSON FERDINANDl'IALLGRAF SILAS E. STRICKLAND GEORGE L. TURNER ROBERT B. WALKER GEORGE A. WILKINSON WILLIAM, B. YOUNG' EXECUTIVE OFFICE CORPORATE OFFICE TRANSFER AGENT REGISTRAR OFFICERS PAUL M. HAHN, President JOHN A. CROWE', Senior T'iee Pi-esider?t ALFRED F. BOWDEN, Pice Presidott VIRGIL D. HAGER, ViaePresid,ent HARRY L. HILYARD, Vice President and~ T reasurer A. LEROYJANSON, j'"i¢ePresicie7itawd Comptroller R'o$ERT,B~ WALKER, Vice President CHARLES GAN'Sxotiv„De7»ctyComptroZier J. WESLEY DALE, Auditor JOHN W. HANLON, Secretar?I EDWARD D. FLAHERTY, Senior:Lssistan.t A irdi~tor WALTERA. KENNEDY, Assistant Auditor FREDERICK W. KENNY, assist'ant Secretary JOSEPH R. WATERHousE, .-lssistant T>-easurer FRANCIs~1. WHELAN, AssistandTreasurer 150~EAST 42ND STREF.'P,,\EW YORK 17, N. Y. 117 11IAINSTREET, FLE3IINGTON, N. J. GUA~RANTY T'RUSTCOMPaNY OF_A'EWYORK. NEW YOR9C 15. N. Y. CITYBAtiK FAI2'1fERSTRUSTCb1IPANY, AE14YORK II5, A.Y. 20

YOUR COMPANY'S PR9NC'PAL PRODUCTS WHICH MAKE YOUR DIVIDENDS POSSIBLE CIGARETTES LUCKY STRIKE - A truly light cigarette made with a blbnd of the finest Turkish and domestic tobaccos. TheIl.UcK1' STRIKE process, "It's Toasted" enhances theligbtness and,bettertaste. A leader among standard size brands PALL MALL -- "Outstanding ... and they are mild'." the nation's leading king sizecigaretlteand also one of the top three among all brands, Its greater length travels the smoke further - and for flavor and mildness, fine tobacco filters best HIT PARADE FILTER TIP -Ataniquenewbldnd resulting froma study of modernXmerican preferences in tobacco tast'e: In the crush-proof box or the familiar pack HERBERT TAREYTON- Itsdi:stinc.tive flavor andmilda7ess have been famous for more than 40vears. Fulllkingsiee with the tip that sta,--ssopleaoantl5~ firm and fresh FILTER TIP TAREYTON - Its eNclusiVe filter containing Activated Charcoal and its qual'ity tobaccos assure that ini every pack ite"mildness makest'he difference"' The (I:ompany al<o ntanufactut-es Swr.'e:T GAroaAi., JoFrNsn;WAL.KrR, 1iFcc.a, OMAR, and "11i1>" blendedicigarettes, andiJlnL.Ac?}ir.[~C), A,ert-n.ar. and LoaoSAn[snL'Ra,Turkish cigarett'es. CIGARS EL ROI-TAN -largest'selliing I0ccigar in americai ANTONIO y CLEOPATRA - the niildest clear Havana cigar LA CORONA* -"Supr.eme the World Over" - the n-orld"sfinest cigar BOCK y CAT - theoriginrlllpanetela, created!in Havana in 1SSS *"International Brands," anion,;WhichareILA CORONA, Boct~ V CA andl Ha-,,ny Cr..ai, are manu- factluiecd by subsidiarie~ of the Coznpamy, ini Cuba andlin the United States. The-wocld-f<imoua C_v: r`sAs Cigai .~ are maulbin Cuba and exported tothe Unitledl States by a suhsidiary of theCompany: Th~Coalpanti alsomanufacturE?s Cr2~~c~~t.r~ort„a hiph-~radcdoniestic cigar. SMOKING TOBACCOS HALFA ND HALF- the CompanR-'~ leadinggranulated pltagcut, Eurlev and Bril;ht BLUE BOAR --Anlerican Tobacco's leader among higli-t;radepipetobacco blendsGENUINE "BULL" DURHAM- stlillfar and away the\o, I"roll-your-own" ;moke .-~mong, the Coinpany's catherhigrh,g~rade :niokin;; niistua•esare CAiti.TONCl.t't', 111;xnertT 'IlAtara'- ruN, Iistrr:riAa. CIrr: Ct'r, OLD I;_Nc1.1s1n Ci'aVECtT, I'IntsoNAi.. I'isi r-ssoHN's I'OTErrot xeI, and Sratt;,r:. Other popular-IPriced 1)rarnisinclude Co-meAsri, C[ -rTY I'im:, FiVir IB[tos., IIoNFsT I.oNG Ct:T„ I%AsE11W. I.rcxY Snzixt: 1:Oz.i. C[-T, .llAYo'S Ct;T I?Lt;c; IPeeiar,rLSS Ln:Lr.rr, STANn:»;u(I_1liAMs4,P,t cKiNG.E[:cMand Tl Xr:no. ,/ J~i~;< ~f»u,2cC_0 )t a :a ~,..,.~.,,.:A•... ...:~-~,.,a -.=p~-.,. ~,.-,.w..~_.•~"~r~^ - _ ..~;. ,..

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