Tobacco Documents Online

i F. C. TILGHMAN SHORTHAND REPORTER RICHMOND. VIRGINIA 11 year? MR. LINDSEY: My question was how much larger were they in the fiscal year ending Yarch 31, 1947, than in the preceding year? MR. HANSON: Advertising expense for the year ending March 31, 1947, $6,988,000. For the same period, 1946, it was $6,328,593. ta. LINDSEY: About $650,000 more. Do you expect the prices of leaf tobacco to decline? I notice your Annual Report says that the prices last year were higher than in any of the preceding years. MR. LYON: Mr. Lindsey, we are hoping that they wonxt increase. We believe that they vron't increase. How much lower'I they will go-is difficult to tell because there is a Governmen floor under tobacco. - MR. LINDSEY: But isn't that floor very much lower th the current market? MR. LYON: I would say not. MR. 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 against a floor of 33. So no one knows how much above the floor this current crop will sell. ~ MR. LYON: It is a little early to tell. :-t :~ - MR. HATCHER: The size of the crop and English buying

, 2 3 . S 6 7 e 9 10 il 12 13 1. 15 16 17 ,s F. C. T I L G H M A N SHORTHAND REPORTER RICHMOND, VIRGINIA 12 will have an effect on it. MR. LYON: The English will cut down their buying this year and a good crop will make more 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 somewhat offset those. MR. LYON: Not entirely sufficient but there have been economies effected which have helped the situation--economies in manufacture. MR. 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 cents, not taking into account some non-recurring deductions and credits but it looks like your profit is only about one-third MR. LYON: It certainly _has diminished. MR. LINDSEY: And I was wondering whether it wasn't feasible for that selling price to be further raised. BM. LYON: I_don't think that is feasible at the ~ _ - - --- - present time but I am hoping that increased volume might help ° -- - - that situation. ~

, 2 3 4 5 e 7 8 9 10 „ 12 13 14 ,s 16 17 ,8 19 20 21 22 23 24 25 F. C. T I L G H M A N SHORTHAND REPORTER RICHMOND. VIRGINIA MR. CHALKLEY: Are there any further questions? 13 MR. BRAUBURGER: Are the Inspectors ready with their report? MR. JEFFRESS: I would like to move that a favorable expression of the stockholders be made to the management for the very important advance made in the Annual Report to the stockholders. PIIR.. CRITMP: I second the motion. (The motion was adopted by viva voce vote) MR. CHALKLEY: The motion is carried. and I MR. DASHIELL: Mr. Chairman, Mr. G.Thcmas TaylorWepor for the Inspectors of Election that the following directors wer elected with the votes that I call: Mr. 0. H. Chalkley, Mr. 0. P. McComas, Mr. J. J. Switzer, Prir. L. G. Hanson, aAr. Jo E. Archbell, Mr. W. B. Ryan, Jr., and 11Ir. G. P. Brauburger were elected by an affirmative vote of 1,278,916 votes by proxy and 18,667 in person. Mr. Riddell and Mr. Rockey got the same number of votes in person but by proxy Mr. Riddell got 1,278,896 and Mr. Rockey got 1,278,796. In every case 50 shares were voted against the directors. MR. CHALKLEY: I announce the election of A. E. Lyon, 0. P. McComas, L. G. Hanson, J. E. Archbell, J. J. Switzer, ..- . . . .._.5 ' _ . _._-- -_ . ----. - . . .- . . . . . . _- - ~ W. B. Ryan, Jr., G. P. Brauburger, K. H. Rockey, H. E. Riddel -.~-'and 0. H. Chalkley as directors of the company to hold office i

until the next annual meeting of the stockholders or until their successors shall be duly elected~ and I direct the 5ecre4 tary to insert in the Minute Book the following papers and documents: Inspectors' oath and report, ballots cast2 and report made by Lybrand, Ross Bros. & Montgomery outlining scopo of their examination of inventories. LM. BRAtTBURGER: I move that the meeting adjourn. (The motion was adopted by viva voce vote).

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