Tobacco Documents Online

R ... ~5.:...~~~ J , , . 0 7 0 10 m ® 14 m m Is ,. ,o to U :, :4 o,. \. _...._.. - .. I. C. TILOMMAN 'MOIITMANO R.POIITtR 111CMYbMO,. VI/IOIN/AA ities and we are able to meet the increases in our business whi,;a •,:,e hope to achieve without aciy additional permanent fin- ancing, At the present time our bank loans aro hih and our inventory position is suchthat we can take advantage of any favorable situation~in the tobacco markets. In order to restore in these highly competitive times our position in the industry, we are spending more money on sales promotion than we did last year. The results to date are very encouraging and I hope that by the end of the current fiscal year to be able U.o report to you that the trend to larger sales of Philip I„orr~:s has been maintained and reestab- lished. YR. CHALKLLY: Do you have any questions? MR. PARKINSON: Do ,lou have the earnings for the three months of this f', sca.i year ? MR. LYOh: They arU not ready yet. 114R. LINDSEZ: I would like to know how much your adver~ tising expenses vere in tr:o fiscal year ending in 1947 as com- pared wi th the pz,-.c;edi.ng fiscal year? TM. LYON: T,_s rirst part of the fiscal year? :,tR. LINDSEY: II notice the operating earnings went up very nicely, about 25 per cent. MR. LYON': Is your question the first quarter of the fiscal year as aFainst the first quarter of the last fiscal

I± r U >., I 0 0 m ,: m 14 m 17 LU 91 t,. 22 ® :. m F. C,,TILOMMAN SNORTNANU RRIORTLR ICMYOMD. ViR.IN1A 11 year?' IuR. LINDSEY: Liy question was how much larger were they in the fiscal year ending 41arch 31~ 1947, than in the preceding year? adfR. HANSON: Advertising expense for the year ending L2arch 31, 1947, 36,988,000. For the same period, 19'+6, it was -6132s,593• iM. LINDSEY: About 365Cs000 more, Do you expect the prices of leaf tobacco to decline? I notice your Annual Report says that thQ prices last year were higher than in any of the preceding years. YR. LYON: Mr. Lindsey, vie are hoping that they won't increase. V!'e believe that they won1t increase. How much lo;^err they will go is di'ficult to tell because there is a Government I floor under tobacco. MR. LINDSEY: But isn't that floor very much lower thar) the current market?' YR. LYQN: I wouldsay not. G1Lt. HATCHER: The floor that is estimated for the next crop is around forty cents. The floor last year was about thirty-three or thirty-four cents, but the bright crop last year sold for 47 cents aoainst a floor of 33. So no one knows how much above the floor this current crop will sell. I::R. LY0N: It is a little early to tel1. t.:Z. H!ATCHF',.1: The size of the crop and English buying ~.._ _ _.._.. . A . t

~...,. . ... .. .:~.. I. C. TILOHMAN •H0117NAN0 RMI111T'[q ICNMONO, VI/IOINIA ~ . ._. ......._.. --....> ~. 12 I a , . 0 , 0 10 „ ® is 14 m 1. 11 . LE 30 r,I u m ® EU wi1l have an effect on it, bi1H. LYON: The English~ will cut down their buying this year and a good crop will make cnore of the bright available for the American market which may have some effect on the pric MR. LINDSEY: I notice in the Annual Report you say that the tobacco prices are higher than pre-war and labor cost are twice as much and that raised a question in~my mind whethe your increase in sales price had been enough to some•iihat offse those. MR. LYON: Not entirely suffIcient but there have been economiep effected which have helped the situation--economies in manufacture. 1.M. LINDSEY: I made some rough figures which showed prior to the war you were making about 61 to 67 cents per 1,00 cigarettes, taking your net income and dividing by the number of million cigarettes, but last year it runs about 17 centst not taking into account some non-recurring dtductions and credits but it looks like your profit is only about one-third on the production that it was. ;:IA. LYON: It certainly has diminished. LINUS'LY: Ind I was wondering whother it wasn't feasible for that selling price to be i'ttrther raised. t::H. LYON: I don' t think that i s feasible at the present time but I am hoping that increased volurle :night help that situ~:tion. . . a] , M. - ,.

I I 7 17 ty m st m m ® m r. C. TILGNUAN 8MOqTN11NO RHO"Tt11 •IQMYqNO, V1/10/MIA 13. MR. CIIALKLEY: Aro thare any i`urther questions? MR. BRAUMUIZGER: Are the InspQctors ready with their report? MR. JEFFRESS: I would like to move that a favorable expression of the stoc}cholders be made to the management for the very important advance made in the Annual Report to the stockholders. I/R. CRU.".P: I second the motion. (The motion was adopted by viva voce vote) L1R. CHkLKLEY: The motion is carried. and I MR. DASHIh'.LL: Mr. Chairman, 11r. G. Trnmas Taylor^repor for the Inspectors of Election that the following directors wer elected wiith the votes that I call: tir. 0. H. Chalkley, Mr. 0. P. AicComas, Lir. J. J. Switzer, Mr. Di. G. Hanson, Mr. J. E. Archbell, Mr. W. B. Ryan, Jr., and :sr. G. P. Brauburger were electediby an affirmative vote of 1,278,916 votes by proxy and 18,667 in person. Mr. Riddell and b7r. Rockey got the same number of votes in person but by proxy Mr. Riddell got 11278,896 and 1ir. Rockey got 1,278,796. In every case 50 shares were voted against the directors. I4R. CYIhLKLL+'Y: I announce the election of A. E. Lyon, 0. P. 1.:cComas, L. G. Hanson, J. E. Archbell, J. J. Switzer, ti',. B. Ryan, Jr. $ G. P. Brauburger, K. H. Rockey, H. E. Riddell and 0. II. Chalkley as directors of the comr~any to hold office

rK lf I I I . , , !. C. TTLQNMAN BNORTNAND RgPO#T[q $11CNMOND, VINWNIA 14 until the next annual mceting cf the stockholders or until their successors shall be duly elected, and I direct the 5ecre tary to insert in the Minute Book the follotiring papers and idocumonts: Inspectors' oath and report, ballots cast, and report made by Lybrar.d') Ross Bros. & C"ontgo:nFry outlining scop of their examination of inventories. I MR. BRAITBURGER: I move that the meeting adjourn. (The motion was adopted by viva voce vote).

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