Title: The Tobacco world, v. 52 Place of Publication: Philadelphia, Pa Copyright Date: 1932 Master Negative Storage Number: MNS# PSt SNPaAg187.2 SOME PAGES IN THE ORIGINAL CONTAIN FLAWS AND OTHER DEFECTS WHICH APPEAR ON THE FILM SOME PAGES AND ISSUES MISNUMBERED Volume 52 1932 Title: The Tobacco world, v. 52 Place of Publication: Philadelphia, Pa. Copyright Date: 1932 Master Negative Storage Number: MNS# PSt SNPaAg187.2 SOME PAGES IN THE ORIGINAL CONTAIN FLAWS AND OTHER DEFECTS WHICH APPEAR ON THE FILM SOME PAGES AND ISSUES MISNUMBERED Volume 52 1932 st ^ J ' 7'<^* JANUARY 1, 1932 A HAPPY NEW YEAR To our customers and friends throughout the industry we extend this old, old greeting of the Holiday Season, gladly offered and sincerely meant. We hope the New Year will bring to each and everyone a generous portion of profitable business. For ourselves we anticipate in 1932 new opportunities for increased usefulness and service. I Phii^-P^- AUTOKRAFT BOX CORPORATION nl°'''l'^^u Hanover, Pa. Chicago, 111. Cincinnati, Ohio LIMA OHIO Detroit Mich. Kansas City, Mo. A Nat ioia Wide SerVlce Wheeling, W. Va. PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST., PHILA., PA. // 2474 J 5 V '^^^^Mm^m^m>iM}M)j}tm^^i^m^ TOBACCO AGENTS FOR THE PHILIPPINE GOVERNMENT CHARLES A. BOND DAVID F. MORRIS 15 William Street New York City. Septem"ber IS, 1931 Mr. U.M. Henofer, Pres., Wooden Cigar Box Boosters Clu"b, 2l6 Seaside Ave., Atlantic City, N.J. Dear Sir: For some years I have followed closely your campaign to protect the cigar industry "by advocating the continued use of wooden "boxes. In this connect ion, permit me to say that Manila cigars are packed one hundred percent in cedar "boxes. Experiments have "been made with other materials in the past, "but, the Manila manu- facturers find that nothing can tilce the place of wood to pre- serve the quality of cigars. It may Interest you to know that the Manila trade is expanding and that shipments show a gain of ahout seven percent over last year. Clean, wholesome cigars, carefully packed in wood is the answer. Respectfully yours , ^ iDPir Philippine T GC ANiiA Cigars drepackeJ., 100% IN WOODEN BOXES • .•• • • •,• • • •• • • • • ••' • • • • • • WHEN BUYING CIGARS Remember that Regardless of Price THE BEST CIGARS ARE PAOLED IN WOODEN BOXES Volume 52 THE TOBACCO WORLD Number 1 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter. December 22. 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, JANUARY 1, 1932 Foreign $3.50 EDITORIAL COMMENT EGINNING with 1920 when the Commissioner of Internal Revenue reported that according to cigar manufacturers' production figures (in- cluding inventory) there were produced more tlmn 8,000,000,000 cigars, and on down to and includ- ing 1930 when the same calculations show a production of 5,881,000,000, we arrive at an average for these eleven years of something more than 6,667,000,000 (E. Without going into the involved procedure of de- termmmg exactly how many cigars were produced in each year, we are willing to take the Commissioner's report of June, 1931 (just issued), which shows a loss of more than 604,000,000 cigars as compared with 1929. The monthly reports (which are subject to re- vision, and how!) indicate a loss for the first eleven months of 1931 of more than 525,000,000. Adding the probable loss in the month of Decem- ber, and including any and all revisions for the calendar year of 1931, the cigar business must have gone back in a two-year period more than one billion cigars below the figures of 1929. The holiday season is no time to quarrel with a contemporary who assures the trade that it is nothing to be alarmed about. But his calm statement does remind us of the story of the English butler, whose employer continually bragged about his efficiency. On the occasion of an important dinner party, however, he failed to function as usual, and was obviously nervous. His employer was very much puzzled but said nothing. At last, after the coffee and cigars had been served he stepped behind the host and whispered in his ear, ** Pardon be, sir, but may I go now! My house is on fire!'' Of course the house of the cigar industry may not be on fire, but here are some figures for this November past and others : Cigar Withdrawals for Months 1920 668,060,015 1926 1921 615,251,258 1927 1922 679,300,302 1928 1923 650,687,413 1929 1924 601,412,539 1930 1925 598,478,129 1931 of November 654,975,106 654,164,677 630,530,692 622,938,344 528,127,899 477,458,157 These statistics are based on monthly reports and have no doubt suffered some revision in the annual re- ports, but they tell the story nevertheless. It is the first time in twelve years, at least, that November with- drawals had dropped below 500,000,000. We are earnestly trying to find out what is the mat- ter with the cigar smoking. Our investigations are taking us back not only to the grower, and the cigar manufacturer's methods of conditioning tobaccos, but to other ramifications of the industry. Of course our particular form of lunacy has to do with the use of the transparent wrapper. It doesn't improve the cigar and we think that is admitted. And if the cigar industry hasn't pulled a Frankenstein in the creation of the use of the non-porous wrapper, then men who have smoked cigars for years and years have been depending entirely on their imagination for the pleasure they have had in smoking cigars in their natu- ral wrappers, and packed in Spanish cedar boxes. Just the other day we had a long conversation with a man fully competent to discuss both the growing of leaf and its conditioning. He laid some blame on the growers but more on the mass conditioning of the leaf, for the fact that cigars are not what they used to be. So far as the non-porous wrapper is concerned he had opinions based on a knowledge of chemistry. He favored it only as a protective agent, and stated that unless the utmost care was used in conditioning the cigar before it waf; encased in the lucid covering it was entirely pro])able that it would not be as satisfactory a smoke as a cigar in its natural wrapper. He added, also, that unless it was consumed within a reasonable length of time after being encased the cigar would un- questionably deteriorate from lack of air. Some months ago an important jobber in a distant city expressed his opinion that the protective value of the transparent wrapper was the only argument in its favor, and he could not see why it would not be far better to supply the tubes to the retailer to give to the cigar smokers who demanded them. The same sugges- tion has been made several times since. And if the labor of encasing the cigars were left to the smoker we are of the opinion that this five-million-dollar baby cradled by the cigar manufacturing industry could be turned over to an orphan's home without any loss of prestige on the part of its parents. And the money saved thereby could be satisfactorily used to improve the conditioning of tobaccos, the use of higher grade containers for the ripening of the cigars, and there might also be some salvage for stock dividends. (Continued on page 15) 52nd year THE TOBACCO WORLD January 1, 1932 January 1, 1932 Say You Saw It in The Tobacco World 52nd year pMIbADEli MIA. A. JOSEPH NEWMAN RECOVERING T BAYUK cigars, inc., headquarters, Ninth Street and Columbia Avenue, we learned that A. Joseph Newman, sales manager of the com- pany, who has been seriously ill at his home for the past four or five weeks, is now convalescing and well on the road to recovery. Mr. Newman was able to be up and around his home this week for the first time since his illness, and it is anticipated that he will be able to be at his desk for a short time each day during the coming week. The many friends of Mr. Newman are rejoicing at his re- covery. Another piece of real news was learned at Bayuk headquarters, which is that the ** Havana Ribbon'' per- fecto extra list price, formerly $40, will be reduced to $38.50 on January 1st. This should be encouraging news for the retailers throughout the country to begin the New Year and prove an added inducement for the trade to get behind this brand and capitalize on its great popularity. John T. Rynn, manager of the Peoria, 111., distrib- uting branch of Bayuk Cigars, Inc., spent Christmas with his relatives in Albany, N. Y., and dropped in at Bayuk headquarters on his return. L. W. Leech, associated with Bayuk Cigars as a salesman in the Michigan territory, has been assigned as manager of the St. Louis, Mo., distributing branch of the company. Zolla Brothers, Inc., 444 East Sixty-third Street, Chicago, 111., have been entrusted with the distribution of Bayuk cigars effective January 1, 1932, for the City of Chicago. This Is a well-known concern in that city and is noted for its progressive and up-to-date methods and its splendid delivery service, and it is predicted that the prestige of Bayuk brands in that territory will be further strengthened through association with Zolla Brothers. This firm succeeds the Clarence Hirsch- horn Company in the distribution of Bayuk brands in that territory as the Hirschhorn Company is retiring from business effective January 1st. Herbert Jacobs, Bayuk salesman in the Erie terri- tory, spent Christmas with his family in Philadelphia and also visited at Bayuk headquarters during the holidays. "ROYALIST" CLOSES GOOD YEAR At Grabosky Brothers, Incorporated, manufac- turers of the ** Royalist" brand, which was launched on the market only last March, they report a highly satis- CONGRESS OFFICES CLOSED AST week saw the closing permanently of the general offices of the Congress Cigar Company at Third and Spruce Streets, and their removal and consolidation with the offices of Waitt & Bond, Inc., and the Porto Rican-American Tobacco Company, at 744 Broad Street, Newark, in the Essex Building. However, manufacturing will be continued by the Congress Cigar Company in their factory buildings at Third and Spruce Streets, and their Camden, N. J., factories. The local jobbing department will be continued here at Third and Spruce Streets also, under the man- agement of Harold Christian, who is well known and well liked in this territory, which is no small asset. Holiday business on "La Palina'^ was excellent and prospects for a good 1932 are excellent. YAHN & McDonnell brands in good DEMAND At Yahn & McDonnell headquarters, distributors of high-grade cigars, cigarettes, tobacco products and smokers' accessories and novelties, they report an ex- cellent volume of business for the holiday trade and the last minute rush of reorders by those w^ho had not an- ticipated such a demand. Reports indicate that Christmas shoppers this year spent their money for gifts that had a real value, and that were calculated to give the recipient real enjoy- ment, and the better grade of cigars came in for a good measure of this business. **Blackstone" and "Optimo" enjoyed a heavy sale and some sizes of these brands were oversold and could not be obtained at the last minute. *' Antonio y Cleo- patra,'' ** Medalist," **Haddon Hall" and the imported brands also enjoyed a heavy demand, and retailers, job- bers and manufacturers have again become imbued with a real spirit of optimism as to business prospects for 1932. Abe Caro, the dynamic ''Optimo" representative, was in town on Wednesday and reported a splendid business on ** Optimo" cigars throughout the country for the holiday i)eriod. factory business on their brand for the holiday period, as well as for the ten months of the year. Plans are being formulated for 1932 sales and the * * Royalist ' ' will make its appearance in some new terri- tories during the coming year. i*^'' rfe m ITS ^OAsr^ ^0 >r^ inHitiiiHHiiiiiiiiiimiiiiiiiiiiiiiii Copr., 19S2. The' AnMilcui TobMoo Co*~ qiiiiniiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim There's none SHFS MISCHIEVOUS, RESTLESS, AND 20, WEIGHS 112 POUNDS. Miu Harlow hat tmoked Luckiat for two y*ari . . . not one cent was paid for her signed statement. She rose to stardom in Hell's Angels' ...and if you'veseen her new COLUMBIA PICTURE,"THREE WISE GIRLS," you'll understand why thou- sands of girls ore trying to match her riotous platinum blonde locks. We ap- preciate all she writes of Luckies, and «o we *ay/'Thanks, Jean Harlow." SO good as LUCKIES" "Fve tried all cigarettes and there's none so good as LUCKIES. And incidentally I'm careful in my choice of cigarettes. I have to be because of my throat. Put me down as one who always reaches for a LUCKY. It's a real delight to find a Cellophane wrapper that opens without an ice pick." ^^^^^^^ 41^...iUoJ- **It's toasted'* Your Throat Protection " ogolnsf Irritation — ggoinst cough And Moiatain-Proof Cellophane Keept that **Toa»tad** Flavor Ever Fraah TUNE IN ON LUCKY STRIKE— 60 modem minuua with the world's finest dance orchestras and Walter Winchell, whose gossip of today hecomea the news of tomorrow, every Tuesday, Thursday and Saturday evening over N. B. C. networku 52nd vear THE TOBACCO WORLD January 1, 1932 A. JOSEPH NEWMAN RECOVERING T BAYUK CIGARS, INC., headquarters, Ninth Street and Columbia Avenue, we learned that A. Joseph Newman, sales manager of the com- pany, who has been seriously ill at his home for the past four or five weeks, is now convalescing and well on the road to recovery. Mr. Newman was able to be up and around his home this week for the first time since his illness, and it is anticipated that he will be able to be at his desk for a short time each day during the coming week. The many friends of Mr. Newman are rejoicing at his re- covery. Another piece of real news was learned at Bayuk headquarters, which is that the "Havana Ribbon" per- fecto extra list price, formerly $40, will be reduced to $38.50 on January 1st. This should be encouraging news for the retailers throughout the country to begin the New Year and prove an added inducement for the trade to get behind this brand and capitalize on its great popularity. John T. Rynn, manager of the Peoria, 111., distrib- uting branch of Bayuk Cigars, Inc., spent Christmas with his relatives in Albany, N. ¥., and dropped in at Bayuk headquarters on his return. L. W. Leech, associated with Bayuk Cigars as a salesman in the Michigan territory, has been assigned as manager of the St. Louis, Mo., distributing branch of the company. Zolla Brothers, Inc., 444 East Sixty-third Street, Chicago, 111., have been entrusted with the distribution of Bayuk cigars effective January 1, 1932, for the City of Chicago. This Is a well-known concern in that city and is noted for its progressive and up-to-date methods and its splendid delivery service, and it is predicted that the prestige of Bayuk brands in that territory will be further strengthened through association with Zolla Brothers. This firm succeeds the Clarence Hirsch- horn Company in the distribution of Bayuk brands in that territory as the Hirschhorn Company is retiring from business effective January 1st. Herbert Jacobs, Bayuk salesman in the Erie terri- tory, spent Christmas with his family in Philadelphia and also visited at Bayuk headquarters during the holidays. "ROYALIST" CLOSES GOOD YEAR At Grabosky Brothers, Incorporated, manufac- turers of the ** Royalist" brand, which was launched on the market only last March, they report a highly satis- C0N6RESS OFFICES CLOSED AST week saw the closing permanently of the general offices of the Congress Cigar Company at Third and Spruce Streets, and their removal and consolidation with the offices of Waitt & Bond, Inc., and the Porto Rican-American Tobacco Company, at 744 Broad Street, Newark, in the Essex Building. However, manufacturing will be continued by the Congress Cigar Company in their factory buildings at Third and Spruce Streets, and their Camden, N. J., factories. The local jobbing department will be continued here at Third and Spruce Streets also, under the man- agement of Harold Christian, who is well known and well liked in this territory, which is no small asset. Holiday business on *'La Palina" was excellent and prospects for a good 1932 are excellent. YAHN & McDonnell brands in good DEMAND At Yahn & McDonnell headquarters, distributors of high-grade cigars, cigarettes, tobacco products and smokers' accessories and novelties, they report an ex- cellent volume of business for the holiday trade and the last minute rush of reorders by those who had not an- ticipated such a demand. Reports indicate that Christmas shoppers this year spent their money for gifts that had a real value, and that were calculated to give the recipient real enjoy- ment, and the better grade of cigars came in for a good measure of this business. *'Blackstone" and '* Optimo'' enjoyed a heavy sale and some sizes of these brands were oversold and could not be obtained at the last minute. ''Antonio y Cleo- patra," ''Medalist," "Haddon Hall" and the imported brands also enjoyed a heavy demand, and retailers, job- bers and manufacturers have again become imbued with a real spirit of optimism as to business prospects for 1932. Abe Caro, the dynamic "Optimo" representative, was in town on Wednesday and reported a splendid business on "Optimo" cigars throughout the country for the holiday x>eriod. factory business on their brand for the holiday period, as well as for the ten months of the year. Plans are being formulated for 1932 sales and the ' ' Royalist ' ' will make its appearance in some new terri- tories during the coming year. January 1, 1932 Say You Saw It in The Tobacco World 52nd year ^k S-. ITS '"O'lsri fo JT^ M" Copr., 1982. The' American Totwcoo Co.~ lllllllllllllll iiiiiiiiiiiiiniiiiiiiiiiiimiiiiiii mil There's none SHPS MISCHIEVOUS, RESTLESS, AND 20, WEIGHS 112 POUNDS. Mits Harlow has smoked Luckies for two years . . . not one cent was paid for her signed statement. She rose to stardom in Hell's Angels ...and if you've seen her new COLUMBIA PICTURE,"THREE WISE GIRLS, you'll understand why thou- sands of girls are trying to match her riotous platinum blonde locks. We a^- preciate all she writes of Luckies, and so we say,"Thanks, Jean Harlow." SO good as LUCKIES" ''IVe tried all cigarettes and there's none so good as LUCKIES. And incidentally I'm careful in my choice of cigarettes. I have to be because of my throat. Put me down as one who always reaches for a LUCKY. It's a real delight to find a Cellophane wrapper that opens ^thout an ice pick." ^^^ "IV^UuJ- "It's toasted" Your Throat Protection — ogalnsf irritation — ogalnst cough Anif Moi9ture- Proof Colloi^ano Koopm that "Toaated** Flavor Ever Freah TUNE IN ON LUCKY STRIKE— 60 modem minutes with the world's finest dance orchestras and Walter Winchell, whose gossip of today becomes the news of tomorrow, every Tuesday, Thursday and Saturday evening over N. B. C. networks. 52nd year THE TOBACCO WORLD January 1, 1932 GEORGE W. HILL EXPRESSES HIS VIEWS ON BUSINESS OUTLOOK N RP]SP()NSE to requests for his views on the business outlook, George W. Hill, president of the American Tobacco Company, authorizes the following: "Too many of us may be prone to forget the real meaning of the word industry. Industry really means diligence. In all liekls of economic activity merchants are meeting stronger resistance to sales efforts. This means that we must apply greater industry, greater diligence toward making sales. "The operations of our company have been ex- tremely satisfactory for the year 1931, although ciga- rette production for the industry as a whole will show a slight decrease when the complete figures for 1931 are available. This is not discouraging, however, to those companies that have faith in their products and that express that faith in constructive sales activity. As I have said before, a large part of that sales activity must be expressed in forceful advertising and in 1932 the American Tobacco (^ompany will continue the aggres- sive advertising policies that have characterized its sales efforts during the last few years. "In times like these people read advertisements more carefully and pay more attention to the printed word than they do when their expenditures are more casual. During the coming months people are going to read advertisements, weigh their contents, think about the statements and make decisions that result in sales Good advertising is the only w^ay to win these sales results. This is especially true as to the wage earner, and the wage earner is our most important market. So far as tobacco products are concerned, it seems to me that the wage earner gets more genuine and w^orth- while satisfaction and pleasure out of his popular- priced cigarette, five-cent cigar and pipe than does the well-to-do man with his imported cigar. Tobacco is the poor man's comfort and solace, a fact which is of vital importance in considering tax problems. Because to- ( Continued on page 15) ''HABANELLO" FIRM PLANS EXPANSION P:0RGE ZIFFERBLATT & company, manu- facturers of the "Habanello" cigar, are re- ported planning to expand their manufacturing facilities through the acquisition of a new and larger building during 1932 in order to cope with the increased demand for "Habanello" cigars. In 1927, w^hen the company was organized its total sales w^ere only $100,000 ; in 1928 the sales doubled and in 1929 they again doubled, and in 1931 sales w^ere more than $1,000,000. In 1932, sales are expected to reach a total of $1,750,000, and it is planned to employ 1000 persons. Holiday sales of "Habanello" cigars, particularly in the "top" sizes, were so heavy that the factory w^as kept working to capacity until the day before Christmas to supply the demand. The "Habanello" cigar is made in sizes to retail from ten cents to twenty-five cents each, and distribu- tion of the brand has been steadily expanded until the territory now^ covered includes as far w^est as Kansas City, south as far as Washington, D. C, and north to Maine. The "Habanello" is a Havana filled cigar and its success has been phenomenal during the depression period when many other brands have suffered a severe loss in sales. CLAUDE TURNER JOINS POPPER COMPANY Claude Turner, w^ell-known cigar salesman, but who has been absent from the cigar industry for a time while he has been devoting his time in the advertising field, has completed negotiations with E. Popper & Company, manufacturers of the "Tudor Arms" and "Ottina" brands, whereby he will become associated with that firm on January 1st as sales representative covering the mid-western territory. The "Tudor Arms" brand is a Shadegrown- w^rapped Havana-filled cigar and the "Ottina" is a Sumatra-wrapped Havana-filled cigar. Both brands enjoy a wide sale. ^\]t ©nharrn nrlb '^^^^^^^^W^.^^^W^^^^W^LW^. January 1, 1932 Say You Saw It in The Tobacco World 52nd year U ave yon smoked a Camel lately? If you want to enjoy cool, smooth mildness in a cigarette — real mildness — just try Camels in the Camel Humidor Pack. It's like giving your throat a vacation — so free are Camels from the slightest trace of bite or burn or sting. Women, because their throats are more delicate than men's, particularly appreciate this relief from the hot smoke of parched dry-as-dust tobacco, and are switching to Camels everywhere. The secret of Camel's unique mildness is that the blend of fine Turkish and mild Domestic tobaccos of which they are made is brought to the smoker in prime factory -fresh condition. All the fragrance and aroma of these tobac- cos — and all the natural moisture which means cool flavorful smoking — is preserved intact for you by the Camel Humidor Pack. So try Camels and see what it means to smoke fine cigarettes — kept fine — switch to them for just one day — then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY, Wimston-SaUm, N. C "Are you Listenin'?'* R. J. REYNOLDS TOBACCO COMPANY'S COAST-TO-COAST RADIO PROGRAMS CAMEL QUARTER HOUR, Morton Downey. Tony Wons, and Camel Orchestra, direction Jacques Renard, every nifht except Sunday, Columbia Broadcasting System PRINCE ALBERT QUARTER HOUR, Alice Joy. "Old Hunch." and Prince Albert Orchestra, direction Paul Van Loan, every night except Sunday, N. B. C. Red Network See radio page of local newspaper for time Don't rtmovt tht moisturt-pnof wrapping from your pachagt of Camtb after you open it. The Camel Humidor Pack is protection against perfume and powder odors, dust and germs. In offices and homes, even in the dry atmosphere of artificial heat, the Camel Humidor Pack can bt depended upon to deliver fresh Camels every time AM ELS Made FRESH - JITcpr FRESH © 1932, R. J. Reynolds Tobacco Company 52nd year THE TOBACCO WORLD January 1, 1932 January 1, 1932 THE TOBACCO WORLD 52nd vear News From Congress _ 'AND Federal Departments EMOCRATIC policies with respect to tax legis- lation are expected to be determined some time early in January, as a result of the inability of the Democratic Policies Committee of the Senate and House of Representatives to reach an agree- ment at their initial meeting before Christmas. Close study is being given the tax recommendations of Secretary of the Treasury Mellon. There is little in- dication, however, the Democratic leaders in Congress will be willing to accept an administration program with respect to taxes, including, as it does, a number of levies which are opposed by various members. With regard to the proposed increase of one-sixth in tobacco taxes other than cigars there is a sharp divi- sion of opinion, it is indicated. Many members in both parties believe that such a tax could readily be imposed, but there are others, particularly from the tobacco sec- tions, who are vigorously opposed to the plan. Several bills to reduce the present rates on tobacco products have been introduced, largely to form the basis of an argument against any increases. The Democratic tax plan, it is now believed, will include increased income and surtax rates, the latter possibly even higher than the 40 per cent, maximum recommended by Secretary Mellon; an increase in the estate tax, which may be accompanied by imposition of a gift tax, and possibly an increase in the tobacco taxes. Beyond that, however, there is some doubt; it is declared by many prominent Democrats that the nuisance taxes included in the administration recom- mendations should not be imposed with business in its present condition, and it has been recommended that part of the deficit may be made up by a bond issue, while from other quarters has come the suggestion for repeal of the profits and loss provisions of the present tax law in order to reach sales made this year in the taking of losses for tax purposes, it being estimated that some $400,000,000 could thus be secured. Present plans of the Democratic leaders call for another meeting of the policies committee early this month at which a tax program will be adopted, to be followed by public hearings on tax proposals before a bill is reported to the House. Price Maintenance Bill Re-introduced Legislation- legalizing contracts requiring the maintenance of fixed resale prices on trade-marked or branded commodities, which has been before Congress for a number of years, has been re-introduced by Representative Clyde M. Kelly, of Pennsylvania, and Senator Arthur Capper, of Kansas. The bill was passed by the House of Representatives last session but was not acted upon in the Senate. From our (Washington Bureau 622Albee Builoimg The measure is known as the * * fair trade bill ' ' and is designed to prevent price cutting on branded articles except under stipulated circumstances, such as the closing out of stock, etc. Demand for the legislation, it is declared, arises from the practice of certain stores, principally chains, of cutting prices on branded goods on which large sums of money have been spent by the manufacturer in advertising, these so-called *4oss leaders" being used to bring in trade for other prod- ucts on which the stores make large protits. In a number of instances, it is alleged, these tac- tics have resulted in heavy losses to manufacturers through the refusal of the public to buy the products at the regular price and the disinclination of price-main- taining dealers to stock merchandise on which there is no assurance of profit. Resolution Asks Investigation of Tobacco Prices Investigation by the House Committee on agricul- ture of the prices of tobacco and tobacco products is sought in a resolution introduced in Congress by Repre- sentative Gilbert of Kentucky. It is pointed out by Mr. Gilbert that the manufac- turers last sunmaer raised the prices of their products, especially cigarettes, **when these products had been made from one of the cheapest crops of tobacco pur- chased from the growers, and at a time when one of the largest and best crops in many years was to be marketed" and that the manufacturers are now pur- chasing this crop at prices ruinous to the growers. **It appears," he declared in his resolution, **that the said companies have the power to lower the price to the grower and raise it to the consumer at the same time and have the power to nullify all natural economic law and to fix the price of tobacco and tobacco products. **lt is evident," Mr. Gilbert continued, **that no competition exists among the several manufacturers in the purchase of tobacco." For the purpose of obtaining information as a basis for legislation, the agricultural committee would be authorized to ascertain whether the companies are violating the present statutes against combines, trusts and unlawful agreements to fix prices ; if the present statutes are insufficient, what amendments are neces- sary to cover arbitrary power of price fixing; and what methods are resorted to and what understanding exists among the tobacco companies to enable them to stifle competition in the purchase of tobacco. Reduction in Tobacco Taxes Sought Greatly reduced tobacco taxes are sought by Representative Hancock (Dem.), of North Carolina, in {CofUirmed on Page 14) SONG PREMIERES ON CHESTERFIELD PROGRAM MERICA'S master song writers will compose special numbers for the '* Music That Satis- fies" program opening January 4th over a coast-to-coast network of the Columbia Broad- casting System. Irving Berlin heads the list of popular composers who will write exclusive tunes for the broadcasts which will star Alex Gray, lyric baritone, and Nat Shilkret's Orchestra, and which will be presented each week night at 10:30 P. M., Eastern Standard Time, over 67 Colum- bia stations. Although not a newcomer to radio. Gray rarely has faced eastern microphones. While in Hollywood, how- ever, the young baritone was engaged to play the leads in complete radio performances of ** Blossom Time" and ** Chocolate Soldier," the latter with Oscar Strauss conducting. Each of these performances lasted more than two hours. Gray attained stage and screen success after a colorful and varied career. His early schooling was obtained in Baltimore, with summer interludes of work on a dairy farm and in tobacco fields in Pennsylvania. He attended high school in Philadelphia and his vaca- tions were spent in a machine shop of an electrical sup- ply company. As a student at Penn State, Gray worked his way through college by taking care of furnaces, washing dishes and selling aluminum utensils. He found time, nevertheless, to become prominent in the glee club, quartet and dramatic society. Graduating as an industrial engineer, Gray worked his way to Europe as a deck hand on a liner and re- turned as a coal passer in the stoke-hole of Howard Goulet's yacht, the ''Niagara." Ensuing years, with musical studies and ambitions always in the back- ground. Gray became a teacher of carpentry and wood turning, a technical editor of a trade publication, a manager of advertising and sales promotion for a truck company. Then came an audition with Florenz Ziegfeld and a part in his * ' Midnight Frolic. ' * He since has had fea- tured roles in such productions as ''The Follies," "Sally," "Naughtv Riquette," "Tell Me More," "Twinkle, Twinkle," "Sweet Lady" and "The Desert Song." Deserting New York and "the road" for Holly- wood, Gray played opposite Marilyn Miller in her first film, "Sally," and likewise was featured in the musical comedy films, "No, No, Nanette," "Spring Is Here," "Song of the Flame" and "Viennese Nights." "When musical pictures lost their vogue Gray re- turned to New York and played at the Palace as the opening of an extensive vaudeville tour. He w^as one of a number of entertainers to give auditions for the Chesterfield program. Berlin has written a waltz entitled, "I'll Miss You in the Evening," for presentation by Chesterfield dur- ing the month of January. Each month thereafter Gray and Shilkret will introduce the latest ballad by another ranking song writer. The special composi- tions will be released to the public at the end of each month. "We plan to introduce to the radio audience eacli month an outstanding composition of America's song writers," Shilkret announced. "The series will be a 'pre-view' of the tempo and spirit of the country'^ popular music in 1932. "The feature will make public, for the first time, the latest songs direct from the master manuscripts in "KING BEE" MAKES CHICAGO DEBUT IN WOODEN BOXES ENGLER & MANDELL, INC., producers of "King Bee," "Tropics" and "Tom Palmer" cigars, inaugurated a sales and advertising campagin in Chicago, which is devoted exclu- sively to their "King Bee" five-cent cigar. The advertising campaign is running exclusively in the Chicago Tribune. Advertisements appear Satur- days in the sport section of that paper. More than five thousand Chicago cigar dealers have already tied into the campaign. These dealers are supplied with display stands and reprints of all advertisements. The dis- play stands were mailed out to all dealers on the day the campaign opened. Wengler & Mandell salesmen are distributing display stands as the campaign progresses. Friday, of each week, all dealers receive a reprint of the advertisement that is to appear the fol- low^ing day. This reprint is so arranged that it can be pasted on the windows, or inside the store. Coincident with the starting of the campaign, "King Bee" cigars made their initial appearance in the Chicago market, packed in their new wooden boxes. The wooden box is prominently featured in all of the advertisements. The "King Bee" advertising campaign is clean and constructive. It is free from derogative compari- sons with other makes of cigars or smoking materials. The theme of the campaign was taken from the actual experience in selling "King Bee" cigars. Up to the time that the campaign was started, the number of "King Bee" cigars that had been sold without adver- tising was many millions. It was evident, therefore, that the success of the "King Bee" cigar was, up to that time, dependent, entirely upon recommendations of one smoker to another, and it was safe to say that these recommendations were also many millions in number. The slogan, "The Cigar of a Million Recommenda- tions" constitutes the actual theme running through the entire series of advertisements. The detailed represen- tation, in each advertisement, displays a variety of ways in which "King Bee" cigars have been recom- mended. Reports indicate that the "King Bee" cigar adver- tising campaign is receiving splendid co-operation from all dealers. The local trade sentiment is extremelv complimentary to Wengler & Mandell, Inc., for having decided, at this time, to make one or more boxes of "King Bee" cigars on the dealer's counter the most valuable one of the lot. TOBACCO PRODUCTS REPORT Tobacco Products Corporation reports for the ten months ended October 31, 1931, net profit of $1,938,582 after expenses. Federal taxes, etc. arrangements typical of each composer. It should prove to be a cross-section of the best music in the American dance, ballad and stage lyrics of the year." Berlin's composition will be followed in February by one from the team of De Sylva, Brown and Hender- son, creators of many musical comedy hits, including "Good News." Henderson writes the music and his associates create the lyrics. Shilkret and Gray will present the features in special arrangements several times each month. The compositions will not be available to other entertainers during the month of the premiere. 10 52nd year THE TOBACCO WORLD January 1, 1932 January 1, 1932 Say You Saw It in The Tobacco World 52nd year 11 STOCKHOLDERS OPPOSE STANDARD PLAN HREE preferred stockholders of the Standard Commercial Tobacco Company, Inc., which has offices in New York, filed suit in the Delaware Chancery Court on December 21st to enjoin the holding of a special meeting of stockholders of the company in New York on December 29th. The com- plainants are Marius S. Salbo, William A. Whittaker and Martin Johnson, all of New York, owners of 750 shares of the company's preferred stock. The special meeting was called to consider a pro- posal that the company purchase 7500 shares of the company's preferred stoek at $55 a share from Ery Kehaya, president of the company, and retire the stock. The complainants allege that the president of the com- pany controls the corporation and has pursued a reck- less and unwise policy in the management of its affairs. The bill of complaint charges that the proposed plan for reduction of capital by purchasing the stock from the president is peculiar, unusual, prejudicial to and a fraud upon the rights of preferred and common stock- holders, and a waste of assets. Under the proposal the company states the presi- dent would receive about $185,000 in cash and 10,000 shares of the Class B common stock of Crum & Forster Insurance Shares Corporation, to be valued at $20 a share. The complainants set forth that 9000 shares of Crum & Forster was acquired by the tobacco company in 1928 at $97 a share and the other thousand shares were received as stock dividends. It is declared that although the company places a price of $20 a share, it has a fair and accepted value of $33 a share. However, the meeting was held on December 29th and the stockholders voted to accept the offer of Mr. Kehaya to sell to the company 7500 shares of its 7 per cent, cumulative preferred stock at $55 a share. The shares are to be retired, and payment to Mr. Keyaha to be in the form of 10,000 shares of common B stock of Crum & Forster Insurance Shares Corpora- tion at $20 a share, some claims of doubtful value and $185,800 in cash. WOOLFSON RESIGNS FROM ''BERING'^ Walter Woolfson, well-known salesman and for the past two or three years connected with Corral, Wodiska y Ca., Tampa manufacturers of the * 'Bering" cigar, has resigned from that company effective January 1st, and will at that time become associated with the Preferred Havana Tobacco Company. Mr. AVoolfson, it will be remembered, was con- nected with the Preferred Havana Company for a short time prior to his connection with the Corral, Wodiska firm. The Preferred Havana Tobacco Company operates a factory in Tampa, and maintains offices at 257 Fourth Avenue, New York City. Mr. Woolfson will continue to maintain his headquarters at 27 East Jackson Boule- vard, Chicago, where he has been located for a number of years. BAYUK CIGAR DIVIDEND Directors of Bayuk Cigars, Inc., have declared a quarterly dividend of 371/2 cents a share payable Jan- uary 15, 1932, to stockholders of record December 31st. Formerly the company paid 75 cents quarterly on the common stock. The regular quarterly dividend of $1.75 on th(J first preferred stock was also declared, payable January 15th to stockholders of record December 31st. URGE REDUCTION IN PENNSYLVANIA ACREAGE N HIS annual report on the outlook for the tobcaco crop in Pennsylvania, H. Andrew Hanemann, market analyst of the Bureau of Markets, urges Pennsylvania tobacco growers to reduce their acreage 25 per cent, next year. Mr. Hanemann 's report states : **It is evident that a big decrease in the production of cigar leaf is needed. If tobacco growers would decrease their acreage b)^ 25 per cent, next year, most of the factors contributing to the present low prices for cigar leaf would disap- pear. The very low average price of 6.4 cents per pound, received by Pennsylvania producers for the 1930 crop was 3.7 cents below the average received by Ohio producers for a similar type of tobacco. **If production is reduced, then, after the current business and industrial stagnation disappears, the growers of cigar tobacco will be in a good position to earn a real profit from their productive activities." The report discloses that stocks of Pennsylvania tobacco held by manufacturers and dealers are the smallest on record, but stocks of Ohio and Wisconsin leaf increased during 1931. All this type is filler to- bacco, so that tlie decrease in Pennsylvania is more than offset. Mr. Hanemann predicts a good demand for Penn- sylvania tobacco because of the popularity of the five- cent cigar and the high quality of the crop produced this year. SPECIALTY DISPLAYS SUCCEEDS SPECIALTY DISPLAY CASE COMPANY. Announcement is made of the purchase from the receiver of the Specialty Display Case Company of all its assets by Specialty Displays, Inc., of Kendallville, Ind. The new ownership brings to this old-established business a substantial financial structure, retaining the same responsible operating personnel of all its de- partment heads. These men have had years of experi- ence in designing and producing the better display cases. The new corporation will be operated under a greatly reduced overhead which saving will be passed on to its valued customers on both re-orders and new designs. L. S. Levy, who has been actively connected with the business since 1917 will be general manager of the new corporation. SALESMEN LEAD IN AUTO SLOGAN WRITING CONTEST Salesmen seem to know how to put punch into their words, for 22 of the first 150 winners of automobiles in the *%Vemo" cigar contest are engaged in sales work, according to the American Cigar Company. The contest has shown, too, that housewives not only know good advertising when they see it but also how to pre- pare good copy, since eight housewives, the second largest group by occupations, have been awarded auto- mobiles by the judges. Awards are based on twenty- word slogans explaining the merits of "Cremo" cigars. One automobile is awarded each day, except Sundays, the winners being announced every night at 7:15 for the East and 11 o'clock for the West, Eastern Standard Time, during the Bing Crosby program over the Colum- bia network. Two newspaper reporters, one of them a woman, and the editor of a weekly newspaper, are also among the winners. 1931 TOBACCO CROP LESS OBACCO production in the United States in 1931 was about 1.5 per cent, less than the rec- ord crop of 1930, according to the United States Department of Agriculture co-operating with the Pennsylvania Department of Agriculture, in a re- port just issued, but acreage was reduced about 4 per cent. The cigar filler class, comprising the Miami Valley, Georgia and Florida sun-grown and Pennsylvania seed- leaf types, has shown a continuous increase in acreage and production since 1929. Production of the cigar binder class was 9.2 per cent, less than in 1930 and 4.5 per cent, above the 1929 crop. The Pennsylvania crop is reported excellent in yield and outstanding in quality. The dry warm weather was very favorable for curing. Only a small percentage of the crop had been sold to December 1st. The Pennsylvania crop was reported as 58,487,000 pounds, with an average production of 1430 pounds per acre. The total United States crop was 1,610,098,000 pounds, with an average production of 797 pounds per acre. B. A. T. DIVIDEND The British American Tobacco Company has de- clared a final dividend on the £1 ordinary shares of 8d free of British income tax, compared with Is 8d tax free last year. Interim dividends during the year were unchanged, totaling 40d, so that full dividend payment for the year on the ordinary shares amounts to 48d, compared with 60d in 1930. The company also decided to pay an interim divi- dend of lOd, tax free, a share on the £1 ordinary shares on January 25th, unchanged from last year. CARRERAS INCOME OFF Carreras, Ltd., manufacturers of tobacco and cigarettes, reports for the year ended October 31, 1931, total income from trading profit, dividends on invest- ments and transfer fees of £769,517, compared with £1,001,370 in the previous fiscal year. After deducting expenses, depreciation, directors' fees, income taxes and reserve for fluctuations in exchange, net income amounted to £687,806, compared with £754,478 in the previous fiscal year. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCK, Wheeling, W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Pretident JULIUS LICHTENSTEIN, New York, N. Y -. ' Vice-President WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y ' Vice-President GEORGE H. HUMMELL, New York, N. Y Vice-President H. H. SHELTON", Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va ..Vice-President HARVEY L. HIRST, Philadelphia, Pa ...Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND, New York. N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio ..•.»«....»....,.«.••,,.... Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON" RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City SecreUry-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS fACK A. MARTIN, Newark, N. T President CHARLES D. COLEMAN, Chicago, 111 Vice-President ABRAHAM SILETT, 1153 Herkimer St., Brooklyn, N. Y Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President BOYS' SCHOOL TO PERMIT SMOKING Santa Claus left 350 pipes under the big tree at the State School for Boys, at St. Charles, 111. They were for boys of fifteen and up. ''The boys want to smoke and will contrive to do it some way or other, ' ' explained Superintendent Otto A. Elliott. *'We Ve had trouble in the past, when they smoked eornsilk, leaves and twine. They even picked up cigar and cigarette butts on the highway running through the school. Now we're going to have super- vised smoking." Fifteen-minute periods after lunch and supper will be set aside for the boys to take out their pipes, fill the bowls from common containers and light up. 12 52nd year THE TOBACCO WORLD January 1, 1932 HOW STATE TAXES AFFECT BUSINESS MERICAN Tobacco Company common and common B shares are currently selling on the lowest price-earnings ratio for many years. With the sharp advance in earnings in the past live years, the shares sold at the highest ratio in the history of the company, but, with the decline in the general stock market, the prices have moved lower, contrary to the trend of earnings. At a price of about 73, the common B stock was selling for only 8.5 times last year's earnings and George W. Hill, president of the company, has stated that earnings for the first ten months of the year were greater than those in the like period last year. At the high of 1929 the common stock sold at 20.3 times the year's earnings per share, the highest valua- tion placed on the company's earning power since dis- solution of the trust in 1911. The low price for that year was also the greatest number of times earnings at which the common B stock sold at the low point of any year, since the dissolution of the trust. In 1930, a generally lower valuation was placed on earning power, and, at the low prices this year, the market placed the lowest valuation on earning power of any year since 1922. While the deflation in security prices, generally, probably accounts mainly for the low price for Ameri- can Tobacco common shares, in some quarters appre- hension has arisen regarding the effect on the com- pany's earnings of the tendency of the States toward taxing cigarettes. Thus far this year, there has been a decline in cigar- ette consumption for the industry, and while it is prob- able that the greater part of this has been due to the reduced purchasing power of the consumer, some of it must be attributed to resentment against the State taxes, and also to the higher prices forced by State taxes. The first effect of the State taxes has been an in- crease in interstate commerce in cigarettes. In some States, a representative of a cigarette mail order com- pany makes weekly trips accepting orders and money for cigarettes to be mailed in carton lots. This legal avoidance of the tax has grown to such a point that in Georgia a group of tobacco retailers appealed to the Governor for aid in combating the competition so gen- erated. The law^ is also evaded illegally through failure to affix stamps or through re-use of stamps. In most States, it is claimed that the violations of the law dimin- ish as enforcement methods are perfected by tax offi- cials, although the re-use of stamps continues a problem. The assumption that the higher retail prices for cigarettes, made necessary by State taxes, have been mainly responsible for the drop of about 3 per cent, in cigarette consumption this year, has gained strength in some quarters, although it is manifestly impossible to gauge with accuracy the effect of prices as contrasted with the effect of the depression generally. Those who maintain that the price is responsible for smaller con- sumption argue that manufacturers will have to reduce prices so that cigarettes, in States which impose taxes, can again be sold for fifteen cents or less. At present prices by manufacturers, chain retailers generally sell cigarettes for fourteen cents a package, although independent retailers obtain fifteen cents a package. Thus, a one cent a package tax might be added by the States without necessarily forcing the price over fifteen cents a package. However, the mini- mum tax now imposed by any State is 10 per cent, of the selling price, which is more than one cent a package. Thus a Lwo-cent tax or more generally imposed would force the retail price over fifteen cents a package, and, at these higher prices, might result in lessened consumption. The result of this, it is reasoned, in some circles, might be lower wholesale prices, to stimulate consumption. This, however, ignores the attitude which the cigar- ette manufacturers might well assume. In the first place, the tobacco industry is now contributing to the revenues of the Federal Government only a little less than a half billion dollars annually. This source of revenue for the Government is sec- ond only to the income tax, and is more than four times as great as the combined income of the ten largest cigarette, cigar, and snuff companies which, with the exception of the cigar business and some manufactured tobacco business, make almost all of the tobacco prod- ucts consumed in the United States. Furthermore, the present Federal tax amounts to six cents a package,, or $3 a thousand. The manufac- turer receives $3.04 per thousand while cigarettes at fifteen cents for a package are contributing in taxes a larger part of the price than any other article widely consumed contributes. While there may be a drop in consumption this year because of the higher prices in States which tax cigar- ettes, there is no assurance that with better times the higher price would hurt sales. A price cut would imme- diately reduce earnings, which could only be offset by wage cuts or other economies, whereas the loss of in- come through decreased sales due to excessive taxation is less certain. Further, it is not certain that the cigarette com- panies which already contribute such tremendous reve- nues to the Government (American Tobacco last year paid more than $150,000,000 to the Federal Treasury), see any need for price cuts. It is known that at the present time, at least, leaders in the industry see no concern regarding price stability. This situation, however, is likely to be changed by the recommendation in President Hoover's budget mes- sage and Secretary Mellon 's annual report for an in- crease of one-sixth in excise taxes on tobacco, with the exception of cigars. Such action would either force an advance in price by manufacturers at least partially to absorb th,e in- creased tax, or, if the price remains unchanged, would result in a reduction in earnings, unless the lower gross income could be offset by economies. With the present price $6.85 a thousand cigarettes, after deduction of trade discounts, the price is $6.04 a thousand, and the gross return to the manufacturer is only $3.04 when the government tax of $3 a thou- sand has been paid. An increase in this tax to $3.50 a thousand would reduce the manufacturer's return to $2.54 a thousand. To avoid a sharp decline in earnings, therefore, manu- facturers would be forced to practice every economy possible. This might entail wage cuts, which the industry has so far found unnecessary. If such economies were necessary, they would probably further remove the likelihood of better prices being paid to the farmer for leaf tobacco. Part of the taxes paid by American Tobacco Com- pany are on its holdings of leaf tobacco. Because this (Continued on Page 18) January 1, 1932 Say You Saw It in The Tobacco World 52nd year 13 CIGAR PRODUCTION STILL DECLINES HE following comparative data of tax-paid products indicated by monthly sales of stamps are obtained from the statement of Internal Revenue collections for the month of Novem- ber, 1931, and are issued by the Bureau. (Figures for November, 1931, are subject to revision until published in the annual report) : Products Cigars (large) : . Class A No. Class B No. Class C No. Class D No. Class E No. November 1930 305,655,940 28,253,243 175,482,858 13,623,235 5,112,623 1931 329,607,030 6,225,000 130,141,690 9,065,314 2,419,123 Total 528,127,899 477,458,157 21,666,000 450,258 7,849,803,470 2,705,103 25,229,734 Cigars (small) .....No. 27,498,773 Cigarettes (large) ..No. 569,956 Cigarettes (small) ..No. 7,951,588,370 Snuff, manufactured. lbs. 3,160,338 Tobacco, manf 'd . . . .lbs. 22,815,370 Note: The above statement does not include tax- paid products from Porto Rico and the Philippine Is- lands. This information is shown in supplemental state- ment. Tax-paid products from Porto Rico for the month of November : Products November Cigars (large) : 1930 Class A No. 12,706,100 Class B No. 333,500 Class C... No. 969,760 Class D No. 2,000 1931 8,278,510 104,750 587,050 4,500 Total 14,011,360 8,974,810 Cigars (small) No. Cigarettes (large) No. Cigarettes (small) No. Tax-paid products from the the month of November : Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. 1,000,000 100,000 2,041,000 Philippine Islands for November 1930 12,595,875 164,230 157,088 5,460 22,826 1931 16,911,815 90,030 58,978 960 250 Total 12,945,479 17,062,033 Cigarettes (large) No. Cigarettes (small) No. Tobacco, manufactured lbs. 215,443 130 200 343,060 186 Note: Quantities of tax-paid products shown in above statements are indicated by stamp sales for the month. Supplement to the November statement of Internal Revenue collections : First five months Objects of Taxation Fiscal pear Tobacco manufactures : 1931 1932 Cigars $9,003,884.34 $7,304,296.87 Cigarettes 154,608,054.22 Snuff 2,933,327.05 Tobacco, chewing and smoking 24,701,854.58 140,183,285.98 2,921,655.26 BIG NEWS ROCKY FORD THE NEW INVINCIBLE ARRI V E SI Every box overflowing with new "5^" value ... A bigger Rocky Ford ... A belter Rocky Ford , . . Watch its smoke. P. Lorillard Co., Inc., 119 West 40th St., New York LONQ FILLER IMPORTED SUMATRA ij OF. Lorillard Co., Ine AMERICA'S LARGEST SELLING HIGH-GRADE CIGAR JAVA WRAPPED The Secret of the Blend CONGRESS CIGAR CO., PHILA., PA. 25,443,414.85 ''BEST OF THE BEST'' Mannfactured br A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Kep West, Florida 14 52nd year THE TOBACCO WORLD January 1, 1932 MORE THAN 2,000,000 YEARS REQUIRED FOR ONE MAN TO SMOKE YEAR'S CIGARETTE PRODUCTION T WOULD take 2,378,000 years for one man to News from Congress smoke up a year's output of American cigar- ettes if he smoked six cigarettes an hour, day and night. Bureau of Internal Revenue figures show that almost 120 billion cigarettes were made last year for consumption in this country, while Department of Commerce figures show that exports accounted for almost 5 billion more. This production of approxi- mately 125 billion cigarettes a year is made possible through the adoption of modern manufa-cturing methods, as typified by such advances as the toasting process including the use of ultra violet rays which is employed by a leading manufacturer for the removal of certain harmful irritants naturally present in every tobacco leaf. Smoking six cigarettes an hour, a man could consume 144, or a little more than 7 packages, a day. Even at this extraordinarily high rate of smok- ing speed, this champion smoker would consume only 52,560 cigarettes a year. Counting the 144 cigarettes he would be able to add to his annual total every fourth year, he would have to keep steadily puffing away to finish his 125 billion in the allotted time. LARGEST WHELAN STORE OPENED The newest and largest unit of the Whelan Drug Company chain has recently been opened at Broadway and Forty-seventh Street, New York City, under the supervision of A. M. Rosenthal, president of the Whelan Drug Company. The new store, which in the words of President Rosenthal, is typical of the establishments operated under the Whelan trade-mark, has two large cigar departments — one in the basement and one on the main floor. There are three fountain-luncheonette counters, and the drug department, situated on the right side of the store, carries one of the largest supplies of drugs to be found in any store in that city. In addition to these features, there is a book de- partment featuring popular books at popular prices, a section reserved for household electrical goods and a sundries department carrying a variety of items. In one particular the new store differs from other Whelan stores, Mr. Rosenthal points out; it has a tea room designed to accommodate those who care to enjoy their meals at their leisure, a departure that is dupli- cated by only one other member of the Whelan chain. The space occupied by the new store was formerly occupied by a United Cigar Store, and Mr. Rosenthal says he feels confident that the new store will equal the volume of cigar business transacted by its predecessor. The new store is under the management of L. A. Golden, who reported the opening sales indicated a promising future for the new establishment. 111-YEAR-OLD PIPE STILL IN USE A meers-chaum pipe, made 111 years ago, still is being used in Syracuse, N. Y. The pipe, the property of Joseph L. Underwood, was brought to America from Germany by his grandfather and Underwood states the pipe found its most usage during the Civil War, when it was carried into the battlefields, although it is twenty inches long. (Continued from Page 8) a bill introduced in the House December 15th, designed to amend the Revenue Act of 1926. The legislation proposes the following scale of taxes: Cigars weighing not more than three pounds per 1000, 50 cents per thousand ; large eigars, selling at not more than five cents each, $1.33 per 1000 ; selling at between five and eight cents, $2 per 1000 ; selling at between eight and 15 cents, $3.33 per 1000 ; selling at between 15 and 20 cents, $7 per 1000 ; selling at more than 20 cents, $9 per 1000; cigarettes weighing not more than three pounds per 1000, $2 per 1000 ; cigar- ettes weighing more than three pounds per 1000, ^.80 per 1000 ; snuff, 12 cents per pound. Possible Violation of Anti-trust Laws by Chains Studied by Federal Trade Commission Possible violations of the anti-trust laws by chain store organizations are under study by the Federal Trade Commission, it is disclosed in the annual report of the commission to Congress. The investigation is directed particularly at the extent to which consolidations in the chain store indus- tries have been effected in violation of the statutes, the extent to which such consolidations are subject to regulation under the Federal Trade Commission Act or the anti-trust laws, and what legislation, if any, should be enacted for regulating and controlling chain store distribution. The commission is also gathering data as to the extent to which the chain store movement has resulted in monopoly in the distribution of any commodity and the possible resort to unfair methods of competition or agreements in restraint of trade involving chain store distribution. Another phase of the study will be de- voted to the question of whether quantity prices are illegal and what legislation, if any, should be enacted with reference to them. Postmaster General Recommends Postage Increase A postage rate of three cents per ounce for first- class matter for other than local delivery, with reten- tion of the present rate of two cents on matter for local delivery where carrier service provided and creation of a one-cent rate for local letters at offices where no carrier service is furnished, is recommended by Post- master General Walter F. Brown in his annual report, just made public. The report discloses that the department, during the fiscal year ending June 30th last, had a gross defi- ciency of $146,066,189 and a net deficit, arising from purely postal funecause in my opinion I believe tobacco should have ventilation and be packed up tightly as they are. I trust you will give this matter your attention and oblige, Yours very truly, JEROME H. SHEIP CO., INC., TRANSFERS HEAD- QUARTERS TO APALACHICOLA, FLA. The Jerome H. Sheip Company, Incorporated, manufacturers of cigar box lumber, mth mills at Ap- alachicola, Fla., and offices at Mobile, Ala., advise the trade that, effective January 1, 1932, the offices at Mobile will be closed and moved to Apalachicola and consolidated with the offices at the mill. The trade is advised that in order that there may be no delay, all communications for the Jerome H. Sheip Company, Incorporated, should be addressed to the company at Apalachicola, Fla. D. EMIL KLEIN IN HAVANA D. Emil Klein, of D. Emil Klein Company, manu- facturers of "Haddon Hall," "Emanelo," etc., sailed for Havana on December 24th accompanied by Mrs. Klein. They expect to he away about three weeks. TOBACCO PRODUCTS EARNINGS Tobacco Products Corporation reports for ten months ended October 31, 1931, net profit of $1,938,582 after expenses, Federal taxes, etc., equivalent to 86 cents a share on 2,240,462 no par shares of Class A stock. 16 52nd year THE TOBACCO WORLD January 1, 1932 January 1, 1932 Say You Saw It in The Tobacco World 52nd year 17 A FARMER'S OPINION HERE seems to be so much talk about our so- called Republican prosperity, I believe it is my duty to write my views on the same and help to analyze the situation as far as possible, so we can make upour minds we ought to change our ways of living. *'I have taken my own case, for instance : I see my mistakes, and many others have acted likewise. I bought a car instead of a farm, and it Avore out ; but the farm I figured on is still O. K. I invested in a radio instead of a cow, and the radio gives static instead of milk. " I am feeding five nice hounds instead of five pigs. I had our piano tuned instead of the well cleaned. T spent all my cash in 1928 and traded up my future w^ages on instalments in 1930, so hard times caught me in a bad shape last fall. **If I had only spent my last $10 for flour and meat instead of gas and oil, I would have been 0. K. I built a nice garage last year instead of covering my barn, and loafed in the mountains two w eeks instead of being in the pasture fixing it so my co^v won't get out; but she is dry, and mortgaged, to boot, for two blankets my wife bought from an agent instead of paying the preacher. ''I'm on a cash basis now, but I 'ain't got no cash.' ** Write or phone if you hear any relief from the Government coming down my way. ** Yours truly in pain, — " — Chattanooga Times, ELEVEN MONTHS WITHDRAWALS FOR CON- FRENCH SMOKERS ROLL THEIR OWN SCAFERLATIS Scaferlatis is increasing in popularity in France, the Tobacco Division of the United States Department of Commerce reports. Scaferlatis is not a new drink nor an outdoor sport, but is tobacco prepared for use in pipes and cigarettes, a la "Bull" Durham. In the last five years its consumption in France has increased by nearly eight million pounds. Scaferlatis is by far the most used tobacco in France. Recent months have seen a tremendous in- crease in this type of tobacco in the United States, espe- cially following the recent return of newspaper adver- tising for "Bull" Durham announcing the reduction in price of a sack from eight cents to a nickel. The trend toward the use of this form of tobacco is par- tially the result of the general economic conditions, and in certain localities is a protest against recent state taxes on ready-made cigarettes, according to tobacco experts. Smokers are rolling their own scaferlatis today on the prairies, on Broadw^ay, and on the boulevards. 1 I CIGARETTES AS TAPE MEASURE As all popular brands of cigarettes are made to a length of two and three-quarters inches, a cigarette can be used for measuring w^hen there is no scale at hand, according to Popular Mechanics Magazine. Any short but confusing distance can be measured quite accu- rately by marking off the cigarette lengths with a pencil. Cigars : SUMPTION Class A— U. S. P.R. P. I. — Decrease -{-Increase Quantity 3,476,683,085 -f 117,516,530 124,002,465 + 381,910 153,180,760 + 13,492,175 First 11 Mos. Cal. Yr. 1931 Total 3,753,866,310 -f 131,390,615 Class B— U.S. .. 163,348,073 — 204,992,399 P.R. .. 1,724,000 — 2,403,580 P. I. . . . 1,172,837 — 527,553 Total 166,244,910 207,923,532 Class C U.S. .. P.R. .. P I 1,280,831,744 5,079,610 499,884 397,856,824 7,954,774 562,828 Total 1,286,411,238 406,374,426 Class D U. S. . . P.R. .. P I 82,053,644 43,600 4,766 31,823,150 16,000 4,922 Total 82,102,010 31,812,072 Class E U. S. . . P.R. .. P I 11,444,571 1,500 10,531 7,980,224 1,100 65,835 Total 11,456,602 8,047,159 Total All Classes : U. S. . . P. R. . . P I 5,014,361,117 130,851,175 154,868,778 J- 1 525,136,067 9,961,544 12,331,037 Grand Total . . . 5,300,081,070 522,766,574 Little Cigars: U.S. .. P. R. . . P.I. 326,349,027 7,500,000 36,148,798 1,500,000 Total 333,849,027 34,648,798 Cigarettes : U. S. . . P.R. .. P I 106,153,550,220 10,030,000 1,954,010 , 1,796,640,704 4,569,640 796,243 Total 106,165,534,230 i 4,802,006,587 Large Cigarettes : U.S. .. P. R. . . P I 5,094,682 1,485,000 1,900 + 1,795,838 1,225,400 1,900 Total 6,581,582 36,891,775 305,633,856 1,109 3,019,338 Snuflf (lbs.) : All U. S Tobacco (Mfd.): U. S. (lbs.) P. I — 174,919 362,068 883 Total 305,634,965 362,951 TOBACCO MAGAZINE ADVERTISING DECLINES DVERTISING expenditures by the tobacco in- dustry in national magazines and farm maga- zines both showed a decline in December as compared with December, 1930, but the totals for the entire year w^ere only 1.9 per cent, behind 1930. Radio broadcast advertising over national netw^orks continued its increasing trend during November, regis- tering a gain considerably higher than the average gain for the year, according to the Business Survey Department of Dorrance, Sullivan & Company, New^ York advertising agents. The December expenditure in national magazines was $592,641, 17.2 per cent, less than the figure of $716,016 registered for the same month a year ago. $457,262, or 77.2 per cent, of this amount, went to advertise cigarettes; $128,433, or 21.6 per cent., went for manufactured tobacco and smokers' supplies; and the remainder of $6946, or 1.2 per cent., went for cigars; $42,250, the expenditure in national farm magazines, was 10.8 per cent, less than for Decem- ber last year. For both national and farm magazines the total was $634,891, off 16.8 per cent. For the entire year, national magazines show^ed a loss of 3.4 per cent, from $6,577,764 to $6,353,494, but farm magazines gained 29.7 per cent., from $325,975 to $422,600. Taking the two together, the total expendi- ture in magazines for 1931 w^as $6,776,094, 1.9 per cent, behind the total of $6,903,739 for 1930. Radio advertising by the tobacco industry over national netw^orks during November, the figures for which have just become available, amounted to $578,- 052, representing a gain of 194.7 per cent, over last year's figure of $196,132. For the first eleven months of 1931 the gain was 156.1 per cent., from $1,858,834 to $4,759,807. For national magazines, farm magazines and radio, the November total was $1,292,561, an in- crease of 44.7 per cent, over last year, while the eleven- month total for these three media was $11,101,010, a gain of 38.8 per cent, over $7,999,207 spent in the like period of 1930. A. T. CO. NOW HAS db% OF CIGAR CO. STOCK Following the offer of the American Tobacco Com- pany to purchase any quantity of the stock of the Amer- ican Cigar Company offered, at a price of $80 for the common and $100 for the preferred, which offer ex- pired on December 21st, it is reported that the Ameri- can Tobacco Company acquired sufficient additional stock so that their holding now approximates 95 per cent, of the stock outstanding. The American Tobacco Company has always held control of the stock in the American Cigar Company, owning approximately 70 to 80 per cent, of the common stock and 85 per cent, of the preferred. SAUNDERS JOINS BORROW BROTHERS C. W. Saunders, one of the best-known cigar sales- men in this and southeastern territories, has severed his connection with the Cortez Cigar Company, with which company he has been associated for several years, and joined the sales force of Bobrow Brothers. Mr. Saunders' territory will extend from Wash- ington, p. C, to Florida, and '^Bold" and ^'Cliveden Hall" cigars can be expected to show a nice sales in- crease in that territory under the able direction of Mr. Saunders. ^tvyvjLV8^'iX»>^L\8/iLX8/JlV»>iJti«/JL\8^ Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly ui advance. FOR SALE FOR SALE— APPROXIMATELY 70,000 POUNDS, PACKED WEIGHT, Southern Wisconsin tobacco — 3 to 12 years old. L. G. Anderson, 2127 Iowa Street, Chicago, III. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATINO CIGAR FLAVORS Make tobacco melCow and smooth in characteK' and Impart a nkost palatable flavor FLAVORS FOR SNOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BBTUN. AKOMATIZEB. BOX FLAVORS. PASTE SWEETENERS FRIES 6l BRO., 02 Reade Street, New York WAGNER BUSINESS WELL AHEAD At John Wagner & Sons, Dock Street, distributors, I. B. White, manager of the cigar department, reports a wonderful ])usiness on Christmas orders, wliicli will eclipse last year's business in volume for the same period. A short time before Christmas it became evident from the amount of reorders that retailers had sud- denly arrived at the conclusion that Christmas business this year was going to be good in spite of many predic- tions to the contrary, and there was a hurried rush to get additional stock, which in some instances could not be done. The **Carl Upmann," ** Garcia y Vega," and the private brands of John Wagner & Sons, "Monticello" and "Wagner," had an unusually heavy sale and they were entirely oversold on some sizes of these brands. The recently introduced cigarette '^Condossis" also en- joyed a particularly heavy sale, and sales of imported brands of cigars was entirely up to normal. AMERICAN SUMATRA TOBACCO REPORT The consolidated ])alance sheet of the American Sumatra Tobacco Corporation and subsidiaries, as of October 31, 1931, shows total assets of $7,975,180 as against $7,999,978 on the same date of last vear. Cash dropped from $358,303 to $298,721. Stock held in the treasury increased to $364,804 from $317,399, and notes and accounts receivable dropped to $413,040 from $519,235. \ JANUARY 15, 1932 , 18 52nd year Say You Saw It in The Tobacco World January 1, 1932 Tobacco Merchants' Association Ave. CITY Registration Bureau, Jew'^yS" Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Kegistration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowance of $2 will be made to member* of the Tobacco Mer- chants' Asaociation on each registration. Note B — If t report on a search of a title necessitates the reporting of mora than ten (10) titles, but less than twenty one (21), an additional charge of On* Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-op'^ (31). an additional charge of Two Dollars ($2.00) will be made and so an additional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. TRANSFERS WILLIAM H. SEWARD:— 19,032 (Tobacco Leaf). For cigars. Registered May 12, 1900, by the American Litho. Co., Chicago, 111. Through mesne transfers acquired by the American Box Sup- ply Co., Detroit, Mich., and re-transferred to Masterpiece Cigar Co., Grand Rapids, Mich., November 1, 1929. KNOWLEDGE:— 23,756 (Trade-Mark Record). For cigars, ciga- rettes and tobacco. Registered January 7, 1901, by American Litho. Co., Chicago, 111. Through mesne transfers acquired by S. Frieder & Sons, New York, N. Y., and re-transferred to Louis K. Liggett Company, New York, N. Y., December 4, 1931. REYNALDO:— 117,705 (U. S. Patent Office). For cigars, cheroots and little cigars. Registered July 24, 1917^ by Reynaldo Cigar Co., Inc., Philadelphia, Pa. Transferred to The S. Frieder & Sons Co., New York, N. Y., and re-transferred to Louis K. Liggett Com- pany, New York, N. Y., December 4, 1931. LA FLOR DE RIZAL:— 41,832 (T. M. A.). For cigars. Regis- tered August 19. 1920, by Walter E. Olson & Co., Manila, P. I., and New York City. Transferred to "El Oriente," Fabrica de Ta- bacos. Inc., Manila, P. I. (The latter being successors to Walter E. Olsen & Co.) FIGHTING BOB:— 41,833 (T. M. A.). For cigars. Registered August 19, 1920, by Walter E. Olsen & Co., Manila, P. I., and New York City. Transferred to "El Oriente," Fabrica de Tabacos, Inc., Manila, P. I. (The latter being successors to Walter E. Olsen & Co.) LA LINDA FILIPINA:— 41,835 (T. M. A.). For cigars. Regis- tered August 19, 1920. by Walter E. Olsen & Co., Manila, P. I., and New York City. Transferred to "El Oriente," Fabrica de Ta- bacos, Inc., Manila, P. I. (The latter being successors to Walter E. Olsen & Co.) SUN RAY: — 22,389 (Tobacco World). For cigars, cigarettes, che- roots, chewmg and smoking tobacco, and in Tobacco, for cigars. Registered May 29, 1911. and May 27. 1911, respectively, by S. R. Moss Cigar Co., Lancaster, Pa. Through mesne transfers acquired by L. W. Killeen, Schenectady, N. Y., and re-transferred to Fred. E. Druck & Co., Dallastown, Pa., December 11, 1931. HOW STATE TAXES AFFECT BUSINESS (Continued from page 12) tobacco must be held for from two to three years, it is taxed twice for property taxes, somewhat like fixed assets. It might be to the advantage of the cigarette com- panies to take a stand against crushing taxation, and permit production to decline, if such action would take place because of high prices necessitated by taxes. If this happened, legislatures would soon become aware of the working of the law of diminishing returns, which, at present, many hardly seem to comprehend. On the other hand, a concession in price by manufac- turers to the taxation tendency of the legislatures might encourage further taxes, and would, in any event, give legislatures more margin on which to work.— TFaW Street Journal. News from Congress {Continued from page 14) **A 2V2-<3ent rate, as recommended last year,^^ the Postmaster General explains, ** would produce addi- tional funds amounting on the present mail volume to about $50,000,000 yearly. Under ordinary conditions this would probably be sufficient to balance the budget and keep it balanced against the existing scale of salar- ies and transportation charges. **A 2V2-cent rate would, however, obviously fall far short of producing adequate revenues at the pres- ent time. The deficit for 1931 attributable to strictly postal operations was more than $98,000,000 and, if present trends are maintained, the net deficit for the current year will be in the neighborhood of $150,000,000. This raises the question whether, in view of the al- ready overtaxed condition of the general Treasury, it would not be advisable, pending the return of normal conditions, to fix a 3-cent rate for letter mail. **Such a rate would have balanced the budget for 1931 and would have reduced the probable operating deficit and the corresponding drain upon the Treasury from $150,000,000 to about $50,000,000 for the fiscal year 1932. It cannot be overlooked that in 1931 one- ijixth of the Treasury deficit was attributable to the loss in post office operations. It is my opinion that the adoption of a 3-cent rate on non-local letter mail should be given careful consideration by Congress in connec- tion with any measures which may be proposed to pro- vide increased revenues for the support of the Govern- ment generally, with a view to relieving the Treasury to the greatest extent practicable of the burden of sup- porting the postal function.'* Other recommendations in the report call for the imposition of an additional fee of ten cents for handling insured, registered or coUect-on-delivery matter the delivery of which is restricted to the addressee only; an increase to $10,000 in the maximum indemnity to be paid for registered matter not insured with any com- mercial agency, fees for registration to be based on both value and length of haul, and the granting of au- thority to the Postmaster General to the fees for insured and collect-on-delivery service and for money orders. NO TOBACCO TAX FOR NEW YORK While no definite information has been issued from the Executive Mansion at Albany, N. Y., Governor Roosevelt has completed his budget covering State ex- penditures for the year 1932, which will be submitted to the Legislature on January 12th. The budget includes $150,000,000 to be raised by additional taxation, and it is believed that no additional taxes on cigarettes or tobacco products will be recom- mended. DIAMOND MATCH REPORTS Diamond Match Company and subsidiaries report for the nine months ended September 30, 1931, consol- idated net income of $1,903,401, after depreciation, amortization. Federal taxes, etc., as compared with $2,086,690 in the first nine months of the previous year. MP J...U8 1932 fimbnt ef ■ H iHI * BIG NEWS AMERICAS LARGEST SELLING HIGH-GRADE CIGAR ROCKY FORD THE NEW IN VI NCIBLE ARRIVES! Every box overHowin^r with new -.^(f" value . . . A bigfi^r Rocky Ford V b«lt. r Korky Ford . . . Watch its snupke. P. LoriUanl Co., Inc.. 119 We.l imh St.- New York JAVA WRAPPED The Secret of the Blend \--rs -> ^ CONGRESS CIGAR CO.. PHI LA., PA. LONG FILLER IMPORTED SUMATRA WRAPPER 'i @/ (( BEST OF THE BEST if »/> ^•'V Manufactured ^ A. SANTAELLA & CO. I rillWit6K« Inc. Office, 1181 Broadway, New York City FACTORIES: Tampa and Kev West, Florida -mi ■■ ■■ «»- -II.^^B.» — ll^^.l ■■ "■ I, »^— «.^— «— »ll^— »■ «l PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. iiUiiuiiiyj|ti^AiMiivi'i>vJiiyjiMitAi^iMiti^ TOBACCO AGENTS FOR THE PHILIPPINE GOVERNMENT CHARLES A. BOND DAVID F. MORRIS 15 William Street New York City. September 13,1931 Mr. U.M. Henofer, Pres., Wooden Cigar Box Boosters CIuTd, 216 Seaside Ave. , Atlantic City, N.J. Dear Sir: For some years I have followed closely your campaign to protect the cigar industry "by advocating the continued use qi wooden "boxes. In this connect ion, permit me to say that Manila cigars are packed one hundred percent in cedar "boxes. Experiments have been made with other materials in the past, "but, the Manila manu- facturers find that nothing can t^ke the place of wood to pre- serve the quality of cigars. It may interest you to know that the Manila trade is expanding and that shipments show a gain of about seren percent over last year. Clean, wholesome cigars, carefully packed in wood is the answer. Respectfully yours, «. Philippine T 100% ANIIA Cigars atepacLeJ.. IN WOODEN BOXES WHEN BUYING CIGARS Remember that Regardless of Price THE BEST CIGARS ARE PACKED IN WOODEN BOXES Volume 52 THE TOBACCO WORLD Number 2 EstabUshed 1881 TOBACCO WORLD CORPORATION Publishers Hobart fiishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, JANUARY 15, 1932 Foreign $3.50 FREIGHT RATES ON TOBACCO INCREASED HE following bulletin has been received from the Tobacco Merchants dissociation in reference to the recent decision of the Interstate Com- merce Commission permitting the railroads to increase freight rates : The Interstate Conmaerce Commission has ren- dered its final decision in the case covering the applica- tion of the railroads of the country for a 15 per cent, increase in freight rates. The application for that basis was denied, but the Commission authorized a moderate increase to be ap- plied to practically all traffic and these rates became effective on January 4th, by special tariffs filed on short notice by all of the carriers of the country. The effect of this adjustment will be an increase of 1^ per 100 pounds on raw leaf tobacco (carload or less) and on unmanufactured tobacco cuttings, sif tings, scraps or sweepings, and an increase of 2^ per 100 pounds on manufactured tobacco and practically all materials going into the manufacture thereof. It may be some State Commissions will refused to apply this schedule on their intrastate business, but definite information is not available as to the extent of such refusals, if any. How^ever, the foregoing will defi- nitely apply to all interstate business. In the Commission's decision, it authorized this rate of adjustment for a period of of fifteen months, and the tariffs providing for this charge will expire on March 31, 1933, unless sooner cancelled or extended. In Re Proposal of Carriers in Eastern Trunk Line Territory to Cancel Commodity Rates The carriers in Eastern Trunk Line Territory have submitted a docket proposing the cancellation of all commodity rates on manufactured and vmnanufactured tobacco from points in Trunk Line Territory to all points in official classification territory with the excep- tion of commodity rates now in effect between Rich- mond, Petersburg, Norfolk and Hopew^ell, Va., on the one hand, and New York, Philadelphia and Baltimore on the other. The effect of this would be the application of the full class rate to any traffic that is now enjoying a com- modity basis lower than such class rate, and if your traffic is affected, it is suggested that you immediately file protest with the representatives of the carriers with which you deal, sending a copy thereof to us; and if you wish, this office will be glad to co-operate with you in that regard, but of course it will be necessary for you to furnish us essential data and information bear- ing on the subject matter. No date has been set for the cancellation of these rates, but the ordinary procedure is that if requests are received for public hearings, the Rate Committee will set a date for such hearing, and if no protests are re- REYNOLDS EARNINGS MAKE NEW RECORDS ARNINGS of the R. J. Reynolds Tobacco Com- pany for 1931, as announced on Wednesday, established a new high record for the company, totaling $36,396,816, or $3.63 a share, compared with $34,256,664 for 1930, or $3.42 a share. These earnings are after deductions of all charges, including provision for interest, Federal and State in- come taxes and depreciation. Cash dividends of $30,000,000, or $3 a share, were paid in 1931, the disbursements totaling the same as in 1930. It was pointed out in the company's announcement that the gain *'in earnings adds another year to the company's unbroken record for steady and consistent grow^th from year to year for more than a decade. Stockholders of the company increased by one-third during the year. ' ' '*The financial condition of the company," says S. Clay Williams, president, in his letter to stockholders, "is presented on the same conservative basis as in for- mer years, with the nominal sum of $1 assigned to its well-known and valuable brands, trade-marks and good- will. There is no bank debt and no outstanding bonds or preferred stock. Net current assets at December 31, 1931, amounted to $128,242,251.20. In addition to this, as noted on the statement, the company has an invest- ment in shares of its own stock at a figure which is less than market price at December 31, 1931. This invest- ment, somewhat larger than that at the close of the pre- ceding year, produces a very attractive yield as com- pared to what could be obtained from any equivalent high-grade security in which surplus cash funds could be placed. No part of the earnings shown in the treas- urer's report for the year was derived from the sale of stock. "The company's plants, equipment and methods are, as always, maintained at a high state of efficiency, and inventories of raw materials and manufactured products are well balanced." Undivided Profits Income Undivided profits increased to $62,233,341 as of December 31, 1931, from $55,836,525 at the end of De- cember, 1930, through the addition of a balance of (Continued on Page 16) ceived, it is very probable that the next supplements to the tariffs carrying your rates will provide for their cancellation and the substitution of the full class rates. Traffic Bureau, Tobacco Merchants Association OF THE United States, By George C. Lucas, Traffic Manager. 52nd year THE TOBACCO WORLD January 15, 1932 GEORGE LEX JOINS ZIFFERBLATT COMPANY AST WEEK it was announced that George M. Lex, well-known figure in the cigar industry for more than twenty years, and until the clos- ing of the Congress Cigar Company offices here a few weeks ago associated with the Congress Cigar Company as general office manager, has become associ- ated with George Zifferblatt & Company in the capacity of secretary of the firm. George M. Lex Mr. Lex will be remembered as having been asso- ciated with the 44 Cigar Company as treasurer at the time of its merger with the Consolidated Cigar Corpo- ration, and later associated with William Steiner Sons & Company, of New York, lithographers. Following that he became associated with the Congress Cigar Company as general office manager, which position he filled until a few^ weeks ago when the offices of that company were removed to Newark and consolidated with those of the Porto Rican-American Tobacco Com- pany and those of Waitt & Bond, Incorporated. Mr. Lex is recognized as having outstanding execu- tive ability and both he and George Zifferblatt & Com- pany are to be congratulated. George Zifferblatt & Company have been particu- larly successful in marketing their **Habanello" brand, which has grown in sales from $100,000 the first year to more than $1,000,000 in sales in 1931, with every expec- tation of surpassing the $2,000,000 mark in 1932. Mr. Lex expects to assume his new duties with George Zifferblatt & Company before the end of Jan- uary, after he and Mrs. Lex have had a short vacation in Florida. George Zifferblatt is leaving for Havana, where he will look over the crop of Havana tobacco for his brand requirements. He will be accompanied by his father, Morris. CIGARETTES DROP IN DECEMBER CCORDING to an advance estimate of cigarette production for December as revealed from col- lections from stamps sold by the Internal Rev- enue Bureau, production of cigarettes for that month will probably show a decrease of at least a bil- lion cigarettes, or about 12 per cent., as compared with the same month of 1930 when production showed an in- crease of 413,362,460, or a gain of 4.32 per cent, over the same month of 1929. On the basis of the December estimate, production of cigarettes for the industry last year would be 113,- 826,268,000, as compared with 119,624,909,917 in 1930, a decrease of 5,796,641,227, or 4.7 per cent. WIDOW OF CIGAR MANUFACTURER DIES Funeral services for Mrs. Christina von Klee, widow of Robert von Klee, who conducted a cigar fac- tory at Thirteenth Street and Girard Avenue for more than thirty years, was held on Friday, January 8th. Mrs. von Klee, who was sixty-six years old, died on Tuesday in Presbyterian Hospital, where she had been removed from her home on Monday. She had been in ill health for a long time. She was the granddaughter of Louis Ertell, former Mayor of Egg Harbor City, N. J., and her husband was the son of Baron Rupert von Klee, of Magdeburg, Ger- many. She is survived by three daughters, Mrs. Samuel Reckefus, Mrs. A. V. Springman and ^Miss Gladys von Klee, and two sons, Herbert and Robert. Funeral services were held from undertaking par- lors at 1820 Chestnut Street, and interment was made at Pomona, N. J. TAMPA PRODUCTION OFF 10% FOR YEAR Final figures of cigar production by Tampa fac- tories as compiled bv the Internal Revenue Department for the year 1931 disclose a total of 408,973,152, which is a decrease of 44,253,000 as compared with production for the year 1930, and this is not considered a bad showing w^hen it is taken into consideration that the great bulk of the production in Tampa is on high-priced merchandise. Production in December was 18,008,000 cigars, made up as follows: Class A — 10,172,000; Class B — 317,000; Class C— 5,894,000; Class D— 1,569,000, and Class E— 47,000. MANILA TOBACCO TO SHOW ORIGIN As a result of a complaint by certain American handlers of Philippine cigar leaf, the Tobacco Board at Manila adopted a resolution requiring that all to- bacco exported to the United States in a partially man- ufactured form must show on the bale the place of origin. Growers and packers handling Isabela and Cagayan have been placed at a disadvantage through the exportation of tobacco from other provinces where inferior tobacco was produced. GENERAL CIGAR DIVIDEND The board of directors of the General Cigar Com- pany, Incorporated, have declared a regular quarterly dividend of $1 on the common stock of the company, payable February 1st to stockholders of record Jan- uary 16th, and a' quarterly dividend of $1.75 on the 7 per cent, preferred stock, payable March 1 to stock- holders of record February 20. January 15, 1932 Say You Saw It in The Tobacco World 52nd year MMave you smoked a Camel lately? If you want to enjoy cool, smooth mildness in a cigarette — real mildness — just try Camels in the Camel Humidor Pack. It's like giving your throat a vacation — so free are Camels from the slightest trace of bite or burn or sting. Women, because their throats are more delicate than men's, particularly appreciate this relief from the hot smoke of parched dry-as-dust tobacco, and are switching to Camels everywhere. The secret of Camel's unique mildness is that the blend of fine Turkish and mild Domestic tobaccosof which they are made is brought to the smoker in prime factory- fresh condition. All the fragrance and aroma of these tobac- cos — and all the natural moisture which means cool flavorful smoking — is preserved intact for you by the Camel Humidor Pack. So try Camels and see what it means to smoke fine cigarettes — kept fine — switch to them for just one day — then leave them— if you can. R. J. REYNOLDS TOBACCO COMPANY, Wiuston-Salem.N. C "Are you Listenin'?" R. J. REYNOLDS TOBACCO COMPANY'S COAST-TO-COAST RADIO PROGRAMS PRINCE ALBERT QUARTER HOUR. Alice Joy. "Old Hunch," and Prince Albert Orchestra, direction Paul Van Loan, every night except Sunday, N. B. C. Red Network CAMEL QUARTER HOUR, Morton Downey, Tony Wons, and Camel Orchesaa, direction Jacques Renard. every night except Sunday, Columbia Broadcasting System See radio page of local newspaper for time Don't remove the moisture-proof wrapping from your package of Camels after you open it. The Camel Humidor Pack is protection against perfume and powder odors, dust and germs. In offices and homes, even in the dry atmosphere of artificial heat, the Camel Humidor Pack can i$ depended upon to deliver fresh Camtls every time AM ELS Made FRESH - JT^jf^ FRESH © 1932, R. J. Reynolds Tobacco Company 52nd year THE TOBACCO WORLD January 15, 1932 (( LA PALINA" SALES GAINING (( BAYUK BRANDS BUILD BUSINESS" AROLD CHRISTIAN, manager of the local jobbing department of the Congress Cigar Company, reports a splendid volume of sales on "La Palina" cigars since the first of the New Year when a reduction was made in the wholesale price of the brand. At that time the Senator size was reduced in price to letail at ten cents, from two for a quarter ; the Mag- nolia size now retails at two for a quarter instead of fifteen cents, and the Perfecto Grande size now retails at fifteen cents instead of three for a half dollar. The Excellente size, formerly a ten-cent seller, has been dis- continued. BROGAN CONFINED TO HIS HOME Paul L. Brogan, vice-president of Yahn & McDon- nell, cigar distributors, 617 Chestnut Street, has been confined to his home for several days due to an attack of laryngitis. The many friends of Mr. Brogan will be glad to learn that he is well on the way to recovery and expects to be able to return to his desk by the end of the week. Steve Hertz, sales manager for D. Emil Klein Company, was in town on Tuesday visiting Yahn & Mc- Donnell, who distribute "Haddon Half cigars here. Mr. Hertz reports a very good business for 1931 with excellent prospects for 1932. Irving Schlessinger, of the Lion Match Company, was a caller last week and reports a sfjlendid call for their monogram matches. Abe Caro, the dynamic sales representative of A. Santaella & Company, was in town last week and pleased with ''Optimo" sales. A crew of painters are now busy throughout the city placing ''Optimo" signs on retailers' windows with good effect. T BAYUK CIGARS, Incorporated, headquar- ters, where Bayuk cigars are manufactured by the millions in the giant humidor factory, they report an improved tone in business for 1932, with their brands getting off to a good start and show- ing an increase for this period of the year over the same period of last year. Lesure Brothers, Danville, 111., are getting a fine start on Bayuk cigars in their territory, and have been assisted by Frank J. Horning, Bayuk specialty man, in their efforts. At Buffalo, N. Y., where Bayuk cigars are distrib- uted through The Kearney-Lehman Company, reports have been received that Bayuk brands are showing an increased demand. C. T. Clifford, Bayuk salesman, is assisting The Kearney-Lehman Company to produce a larger volume of sales. J. N. Carr, Elkhart, Ind., distributor, is being as- sisted by Bayuk 's territorial manager, F. B. Mueller, in preparing for an increased business during January on Bayuk 's "It's Ripe Tobacco Cigars." A. Joseph Newman, Bayuk 's sales manager, who has been confined to his home for several weeks due to illness, is making steady gains in health and expects soon to be back at his desk. The old saying, "It's hard to keep a good man down," has certainly proven true in Mr. Newman's case, and he is "just rarin' to go," and it takes the combined efforts of his physician, fam- ily and friends to convince him that he is not yet ready. CLERK FOILS HOLDUP An attempted holdup in a cigar store at Thirteenth and Filbert Streets was frustrated on Monday night last week by Michael Harrison, of 1601 North Fifty- second Street, a clerk in the store. A young man entered the store, pointed a gun at Harrison and demanded the money in the register. Harrison started towards the register as if to obey, but on his way he stepped on the burglar alarm button and the bandit fled when the bell rang. J. C. HOWARD A VISITOR J. C. Howard, sales representative of Schwab, Davis y Ca., manufacturers of the "Pancho Arango" brand, was a visitor at John Wagner & Sons, Dock Street distributors, on Monday, and reports a highly satisfactory business during 1931, and getting off to a good start in 1932. A. D. Condossis, of the Condossis Tobacco Corpo- ration, was also a visitor at the Wagner headquarters last week. The "Condossis" cigarette, a newcomer in the market, is meeting with exceptional success under the guidance of John Wagner & Sons, and has been a steady seller from the day of its introduction here. The "Condossis" cigarette is manufactured in three different sizes and blends: "King Condossis" — full size and all Turkish tobacco; "Prince Condossis" — ^medium and also all Turkish tobacco, and the "Count Condossis" — regular size and blended of Virginia and Turkish tobaccos. January 15, 1932 Say You Saw It in The Tobacco World 52nd year ftv\i y^. V?- •i^i tm ■ti m BD' Copr., 1932, The American Tobacco Co. // I s^vore off harsh irritants'' "Certainly I am on the LUCKY list. Last summer, while camp« ing in the high Sierras, I hiked six miles to get my supply of LUCKY STRIKES. I swore off harsh irritants when the talkies first started — and I've smoked LUCKY STRIKES ever since. And that improved Cellophane vi^rapper of yours — with the little tab for easy opening— is a gem." • j - "T ^ It's toasted" Your Throat Protection <- against irritation » against cough And Moisture-Proof Cellophane Keeps that "Toasted" Flavor Ever Fresh TUNE IN ON LUCKY STRIKE— 60 modem minutes with the world't finest dance orchestras and Walur Winchell, whose gossip of today becomes the news of tomorrow, every Tuesday, Thursday and Saturday evening over N. B. C. networks. THE LONGEST NAME IN MAZDA LANE I "Twelvetree*" is a tough noma on electric lights, but Helen wouldn't change it. ..not even after she mid- dle-aisled it. She's a Brooklyn girl. She studied art but paints only hor own furniture now. Helen is Holly- wood's best bridge player. She loves to climb mountains . . . wherp even the goats have to wear skid chains. Wotch for her new RKO- PATHE PICTURE "PANAMA FLO." Helen's smoked LUCKIES for two years . . . and there was no price tog on her statement . . . LUCKY STRIKE is grateful I 8 52nd year THE TOBACCO WORLD January 15, 1932 PHULOFAX APPRECIATES CO-OPERATION HIL M. PHULOFAX, D. B. L, associated with Bayuk Cigars, Incorporated, has just about made up his mind that he is going to have a lot of billheads printed and send them to some of the cigar retailers whose names he could mention but won't. This announcement Mr. Phulofax made to a representative of this magazine recently when inter- viewed in his office regarding certain material sched- uled to appear in the advertising pages of this publi- cation. Asked to state what he had in mind, Mr. Phulofax said: ''I'm dead serious when I say I'm thinking of sending out bills to certain retailers I know. But they'll not be like the average bill, with demand for payment of a certain specified number of dollars and cents. Instead, they'll read something like this: ''To Phil M. Phulofax, D. B. I., Debit: "For One Idea, supplied to Mr. A. Cigar Retailer, Esq. "Amount of Charge: One of Mr. A. Cigar Re- tailer's good selling hunches. "Received Payment — (when I get the idea so I can pass it along to all other cigar retailers.) "(Signed) Phil M. Phulofax." "Wliat I'm getting at is that I've recently heard some of the retailers for whom my sales messages are intended have been making use of some of the pointers contained in them. Sometimes, I understand, they've put them into practice virtually without a change. Just as often they've adapted them to meet their own par- ticular needs. I'm glad to hear this for they are the progressive members of our group but each and every one of them has a flock of sales building ideas he uses from time to time and I believe he owes it to his fellow cigar retailers to send them in to me so I can pass them along for the good of the industry. As for all of this talk of mine about billing the users, of course I really don't intend to do it, although, personally, I think it would stimulate some of the — I '11-write-it- tomorrow fellows to prompt action. You see, when a fellow like me is offered a pretty good idea and casts it out, like the well-known bread on the troubled busi- ness waters, he'd rather like to know whether it's going to sink to the bottom, a soggy mass, without benefit to anyone, or whether it'll come floating back as 'dough' of another sort to my friends the cigar re- tailers of the country. ' ' If one of you fellows thinks that some particular tip in my messages has something about it that you can use, then I'm not human if I'm not almighty pleased to hear about it. It's then I'd like to send you one of my billheads inscribed with that bit out of the aforementioned statement — 'Received Payment of One Vote of Thanks — in Full' — and then some! "Also, if one of you has an idea that has worked, then don't be a dog in the manger about it. Send it along to me, so that I can pass it on to somebody else. For there isn't a progressive cigar retailer in the country today — I don't care who he is — who will pass up any good tips that will help him in his business. "Ideas. That's what we want. Good ones, of course, preferred. But even what looks like a bad one very often has a kernel of value that can be made to grow. In the words of the old song, 'You Never Can Tell 'Till You Try.' "So try sending a few of your prize ones on to me, and between us, we'll try them out on the other fellow, for the general good of us all. ' ' MINORITY STOCKHOLDERS TO CO-OPERATE WITH AMERICAN TOBACCO COMPANY HE support of minority stockholders of the American Cigar Company in an investigation of the company's affairs at the invitation of the American Tobacco Company was sought last week by a committee composed of Robert Lehman, of Lehman Brothers ; Maurice Newton, of Hallgarten & Company, and John Fay, of Farnum, Winter & Com- pany. The committee's statement said: "With the ex- ception of a small minority interest still outstanding, the American Tobacco Company has acquired all of the preferred and common shares of American Cigar Company. "The undersigned stockholders (Messrs. Lehman, Newton and Fay), who have not disposed of their shares, have undertaken as a committee for the pro- tection of the minority to investigate the affairs of the American Cigar Company and have accepted the sug- gestion of the representatives of the American Tobacco Company that the plans of the company for the man- agement, and disposition of the assets and business of the American Cigar Company be submitted to and dis- cussed with them. It is essential that the interests of minority be represented in such negotiations, and in order that our views be given due weight we ask your co-operation and support." CHAIN STORE SALES Dominion Stores, Ltd. Four weeks' sales to December 26, as reported by Dominion Stores, Limited, totaled $1,982,482, com- pared with $2,071,830 for the same period of the previ- ous year; a drop of 4.3 per cent., while for the year to the same date gross sales were $25,200,927, against $24,118,586, or an improvement of 4.4 per cent. Peoples Drug Stores Sales of Peoples Drug Stores for December totaled $1,777,397, against $1,707,203 in December, 1930, an in- crease of $70,194, or 4.1 per cent., while for the year sales totaled $17,472,674, as compared with $16,777,867, or an improvement of $694,807, or 4.1 per cent. Walgreen Company Walgreen Drug Company reports sales in Decem- ber of $4,609,082, which compares with $4,726,934 in the same month of the previous year, a decrease of 2.5 per cent., while for the entire year sales amounted to $54,069,790, against $51,647,300, or an increase of $2,422,409, or 4.7 per cent. Exchange Buffet The Exchange Buffet Corporation reports sales for December of $441,483 as compared with $544,590 for the like month in 1930, a drop of 19.13 per cent. Sales for the first eight months of the fiscal year aggregated $3,299,767, as compared with $4,005,404 for the corre- sponding period of the previous year, a decline of 17.61 per cent. 1931 MANILA SHIPMENTS INCREASED Cable advices from Manila, P. I., state that 14,- 569,229 cigars were shipped to the United States in December. The total number for the year reported by the Bureau of Internal Revenue, Manila, is 166,193,- 145. In 1930 the total shipments as recorded by the Bureau of Internal Revenue, Manila, P. I., amounted to 154,124,394, a gain of 12,068,751. January 15, 1932 THE TOBACCO WORLD 52nd year 9 lou can depend on a Liggett & Myers product Granger is made for pipes. •and its in more and more pipes every day. Just try it ! Hacked in a handy pocket pouch of heavy foiL Keepi the tobacco better and makes the price lower. Hence 1 Q|% 10 52nd year THE TOBACCO WORLD January 15, 1932 News From Congress _ 'AND Federal Departments From our I^ashinoton Bureau 62ZAlbee Building ROPOSALS for an increase in the revenue taxes on tobacco and its products will come before the House Ways and Means Committee for consideration during its hearings on tax- ation of miscellaneous commodities, January 21 to 23, inclusive. An increase of one-sixth in the tax rates on all tobacco products except cigars was recommended by Secretary of the Treasury Mellon in his annual report to Congress last month. Although leading Democrats, at the beginning of the session, declared themselves strongly against the imposition of new or increased miscellaneous taxes, the situation now is less well defined and there are indica- tions that the administration program may be ac- cepted. Political considerations this year play an im- portant part in all activities in Congress. Having gained control of the House, the Democrats are looking forward to a successful presidential campaign and to that end are doing notliing which would endanger their chances. Accordingly, if it appears likely that the administration tax program will be unpopular with the public or will fail to raise the anticipated revenues, there is a disposition to '4et it ride" and saddle the Republicans with responsibility. A great deal of opposition has already been ex- pressed with respect to the taxes on admissions and automobiles and a strong fight against the increased tobacco taxes is expected to be waged before the com- mittee by representatives of the industry. In this, it is anticipated, tliey will have the support of Democratic congressmen from tlie tobacco growing districts who see in the proposal a further contraction of growers' markets as a result of consumer reaction to the in- crease. The attack on the administration proposal to in- crease tobacco taxes will be led by Charles Dushkind, general counsel of the Tobacco Merchants' Associa- tion; Representatives Chapman, of Kentucky, and Hancock, of North Carolina, and Emerson Ela, of the Wisconsin tobacco pool. It is expected that the tobacco witnesses will tell the committee that depression has already hit the in- dustry hard and that to increase taxes at this time will only serve to batter sales down further. Internal reve- nue figures show that there was a loss in business dur- ing the past year and it is expected that the witnesses will point out that every day the depression continues makes sales resistance that much stronger and more and more people see the money saved ** against a rainy day" dissipated. In addition to the discussion of the proposed to- bacco tax increase, Representative McReynolds, of Tennessee, will appear before the committee to discuss the sizes of cigarette packages, and Representative Haines, of Pennsylvania, will talk on the sizes of cigar boxes. Codes of Ethics Adopted May Be Made Binding Codes of ethics adopted by industries at trade practice conferences held under the auspices of the Federal Trade Commission would be made legally bind- ing and Federal trade courts established to hear cases arising from violations, under legislation introduced in Congress by Senator Nye, Republican, of North Dakota. The measures were drawn, the Senator explained, to protect independent tradesmen, owners of small fac- tories, and lesser industrial and agricultural operators against what he described as ^'cutthroat" competition by encroaching chain organizations. Under the present law, he said, trade practice con- ferences are ineffectual because ^^ rules are accepted and promulgated by the Federal Trade Commission today and perhaps tomorrow many of them are scrapped. ' ' **The uncertainty thus occasioned has all but de- stroyed the usefulness of the conferences," he declared. **The proposed legislation absolutely prevents this by providing a means whereby any rule has an oppor- tunity to be judicially determined, which is not possible at present. ** Under present conditions, the small independent business man has no practical relief from oppression suffered by reason of unfair competition. He may ap- ply for relief to the courts or to the trade commission, but by the time the long-drawn-out and expensive process is concluded he is perhaps out of business. Under the bills proposed, he has the advantage of prompt relief and the securing of a far competitive field wherein neither large nor small have any unfair ad- vantage. ' ' The measures provide for the creation of a Federal trade court, with branches in each of the ten judicial circuits, before which would come all cases arising out of violations of trade rules. The legislation would also make it illegal to sell goods below cost for the purpose of injuring a com- petitor, or to discriminate in price between different purchasers except on account of differences in grade, quality or quantity of the commodity sold ; to make due allowance for difference in the cost of selling or trans- portation, or to meet competition. {Contimted on Page 17) January 15, 1932 Say You Saw It in The Tobacco World 52nd year 11 Phil M. Phulofax/ D. B. I. {the retailer's friend) says: © B. C, 1932 "It's SUNSHINE that makes the world go 'round faster" THEY may laugh at the "hot-stove leagues" ... at the gabfests that take place among the little groups which gather in cigar stores, barber shops and local railroad-station wait- ing rooms. But if you want to get the honest, imvarnished low-down about what the rank-and-file of American citizenry thinks on this or that subject, just "listen in" on any of these informal palavers. "What's the outlook for 1932?" is a favorite topic these days. I'm not an astrologer or a long-bearded prophet. But when I want to get a line on public sentiment I mosey into a half-dozen cigar stores and unbutton my ears. And one thing I've noticed is this : The brighter, shinier, neater the store — and the cheerier the disposition of the boss of the establishment — the more optimistic are the conversations I hear. . . . Which brings me an idea. There are some 150,000 of us folks (cigar store proprietors and sales help). We come in contact with some twenty million grown-up, sound-minded people ... the most solid strata of our popu- lation— the biggest factor in the business world — if you ask me. I contend that we— the 150,000 aforementioned— can do things toward speeding the return of national prosperity^ by thinking, talking and exuding optimism ourselves . . . by squelching crape-hanging pessimism ... by bringing the sunshine into our own stores and souls. "Smile, dern yuh !" is my slogan. And I also vote that we call ourselves "The Gloom America." Chasers" or "The Sunshine Spreaders of Whaddya say? Will you enlist? Will you promise to put new life into your displays and your store in general? To be spry and cheery when waiting on customers? Will you help to put the kibosh on morose mutterings? Will you fill yourself with only the encouraging things you hear or read about and pass 'em along whenever you can edge into a conversation? Man, if you and your fellow retailers will do these things, you'll be contributing a whale of a bit toward putting these grand old United States right side up ! * Associated ivitli Bayuk Cigars, Inc., Philadelphia Makers of fine cigars since 1897 P. S. Now we'll Ret down to the real business of selling cigars in 1932. I've gathered some new ideas. But I want yours too. Send *em in ... we gotta pull together. BAYUK BRANDS BUILD BUSINESS BAYUK PHILADELPHIA CIGAR (BAYUK "PHILLIES") BAYUK HAVANA RIBBON PRINCE HAMLET BAYUK MAPACUBA CHARLES THOMSON Listen in— and tell others to listen in— on the "Bayttk Stag Party** over WJZ and network, Sunday evening* 12 52nd year THE TOBACCO WORLD January 15, 1932 January 15, 1932 Say You Saw It in The Tobacco World 52nd year 13 PORTO RICO TRADE SUSTAINED OR Porto Rico, as for the rest of the world, 1931 was a year of depression. However, the deviation from normal trade was probably less in Porto Rico than in almost any other market of like or greater importance. One reason for this is that the devastating hurricane of 1928 had deflated Porto Rico, causing its business community to retrench to the limit a full year before the general depression made itself felt elsewhere. Whatever the cause, the visible exterior trade of Porto Rico for 1931 will show no decline in value as great as those being registered in most trade regions of the world, and the outlook for 1932 is optimistic. . . A serious problem, however, and one remaining unsolved at the end of the year, was the failure of the tobacco growers to market their crop at prices satis- factory to them. Those who were able to finance them- selves held their tobacco for better prices, which never materialized. As a result of their refusal to sell, a rather heavy burden was placed on those banks, mer- chants and factors who had extended credit to tobacco growers and those dependent on them. To further com- plicate the situation, dissatisfaction with prices and the agitation consequent thereto resulted in an organ- ized determination on the part of many planters to refrain from planting tobacco during the fall of 1931. With the strain on banks and other credit sources accentuated by the tobacco situation and other factors, there was throughout the summer months a feeling of uneasiness as to the soundness of the banking insti- tutions. Notwithstanding the unfavorable circumstances, there were few commercial failures of importance. No unusual difficulties were experienced with collections, although they were appreciably slower than usual in certain sections of the island. There is every reason to believe that the island will produce, and sell, buy and consume to a satisfac- tory extent during 1932. — Commerce Reports, SNUFF POPULAR IN CZECHOSLOVAKIA According to a report in Commerce Reports, by Sam E. Woods, Assistant Trade Commissioner, the general idea that the use of snuff has been practically given up except in rare cases does not apply to Czecho- slovakia. According to reports of the Czecho-slovak Tobacco Monopoly, during the past five years more than 459,000 kilos of snuff have been consumed within the country. This is an average consumption of about 90,000 kilos per year. KLEIN RETURNS FROM HAVANA D. Emil Klein, head of D. Emil Klein Company, manufacturer of "Haddon HalP' and other well-known quality brands, returned this week from Havana where he has been inspecting the Havana crop in connection with his requirements for 1932. He was accompanied by Morris Edelman, vice-president of the company. TOBACCO PRODUCTS DECLARES EXTRA On January 6th the board of directors of Tobacco Products Corporation declared a fifteen-cent distribu- tion on the $20 par class A stock, and the regular quar- terly dividend of twenty cents, both payable February 15th to stockholders of record January 25th. A similar payment was made a year ago. WORK RACKET ON LIFE SAVERS HE recent wholesale fancy which seized upon undergraduates of a large eastern college to attend costume balls in the disguise of a life saver became rather puzzling to officials of Life Savers, Incorporated, of Port Chester, makers of the popular * * candy mints with a hole. ' ' Courteous letters from the college men, announcing their intention of appearing at a forthcoming fancy dress party as a saver of lives, and thanking the com- pany in advance for any assistance it might give in forwarding some posters and advertising matter to complete their costume, arrived in increasing volume. It seemed that costume balls were quite a rage. Not to be outdone in beau geste and believing such interest in their trade-mark should be encouraged. Life Savers had not only replied to these communications with the requested supplies, but had taken care to en- close an ample sampling of the little candy mints. Discreet inquiries finally disclosed that costume partying was not so popular at the college as were the mints. Life Savers officials, however, believe their gen- erosity was well placed in spite of themselves. Nothing gets around so widely, they say, as a story of a hoax, and sometimes it pays to be the agreeable goat. 192 AUTO WINNERS LIVE IN 35 STATES Men and women in thirty-five states in addition to one winner in the District of Columbia have won new automobiles in the ''Cremo" cigar contest, a tab- ulation of awards up to January 8th reveals. New York leads the states with twenty-two winners, and California is second with seventeen. Pennsylvania ranks third with fourteen winners, while Massachusetts and Tennessee are tied with ten. Texas is fifth on the list with nine winners and Hlinois is sixth with eight. Awards are based on twenty-word slogans explaining the merits of ''Cremo'' cigars. One automobile is awarded each day, except Sundays, the winners being announced every night at 7:15 for the east and 11 o'clock for the west, eastern standard time, during the Bing Crosby program over the Columbia network. The first winner was announced on Saturday, May 30, 1931, a Calif omian's twenty words winning him the auto- mobile on that day, and awards have been made every weekday since that time. BARNESVILLE CIGARMAKERS GET INSURANCE Fifty-seven employees of the Charles. McDonald Cigar Factory, of Barnesville, Ohio, have been covered with life insurance through the acquisition of a group policy by that organization for a total of $29,000. This policy was issued by the Prudential Insurance Com- pany of America, and according to its terms each Worker is insured in amounts ranging from $500 to $1,000, according to rank. The premiums for this policy will be shared by the employees and the employing company, the policy being of the contributory type. FLOOD MAY AID MANILA GROWERS Early in December heavy storms caused floods in the tobacco provinces of Isabela and Cagayan, P. I. The Governor of Cagayan reported that flood to be the worst in fifteen years. Presumably, only a small portion of the new crop had been planted and the loss to tobacco farmers is not great. On the other hand the fertilization of the soil due to the overflow of the river should result in an advantage to tobacco planta- tion owners before the season is over. The Name "Autokraft" is a Guide to Quality and Value in Cigar Boxes AUTOKRAFT BOX CORPORATION welcomes the opportunities of the New Year to increase its field of usefulness to its customers, and to assure them of the maintenance of the highest standards for its product. In 1932 principles established by past experience will be joined with new ideas and new methods for the production of a container which will exemplify the finest type of package. Our reputation as manufacturers of quality boxes will be supported by ceaseless effort to serve our customers with the most satisfactory product that mechanical invention and human skill can fabricate. The new AUTOKRAFT wooden cigar box represents in character, and in indis- pensable values to the cigar itself, a container which meets the challenge of com- petition. Phiia., Pa. AUTOKRAFT Hanover, r'a, Cincinnati, Ohio LIMA Kansas City, Mo. A Natiojl\ CORPORATION J:*5';. Ohio Detroit, Mich. Service Wheeling, W. Va. automatic machines offer A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AUTOMATIC AGE 2810 S. Michigan Avenue Chicago Illinois B. A. T. EARNS 20 PER CENT. The British- American Tobacco Company, Limited, reports for the year ended September 30, 1931, net profits of £5,334,448, after charges and income taxes, equivalent after dividends on the 5 per cent, and 6 per cent, preferred stocks to 20.14 per cent, on 23,582,761 shares of ordinary stocks. In the previous fiscal year the company earned £6,401,560, or 25.21 per cent, on the ordinary stock. EXCHANGE BUFFET DIVIDEND Directors of the Exchange Buffet Corporation have declared a quarterly dividend of SV^ cents on the no par common stock payable January 30 to stock of record January 15. This is a reduction from 25 cents paid formerly. TOBACCO TRADE ORGANIZATIONS TOBACXO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH, Wheeling, W. Va Pretident CHARLES J. EISBNLOHR, Philadelphia, Pa ExPreiident JULIUS LICHTENSTEIN, New York, N. Y •. ' Vice-President WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y • VicePtesident GEORGE H. HUMMELL, New York, N. Y ' Vice-President H. H. SHELTON, Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va '..Vice-President HARVEY L. HIRST, Philadelphia, Pa ...Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Directo- Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City SecreUry-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS fACK A. MARTIN, Newark, N. J Pretident CHARLES D. COLEMAN, Chicago, 111 Vice-President ABRAHAM SILETT, 1153 Herkimer St., Brooklyn, N. Y Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE KSA LEMLEIN President 5AMUEL WASSERMAN Vice-President 14 52ncl year THE TOBACCO WORLD January 15, 1932 January 15, 1932 THE TOBACCO WORLD 52nd year 15 Cigar Store Indians Have White Brothers and Sisters HE CIGAR STORE Lidians of the old days had a good many ''white brothers" and at least a few sisters, as a novel display in the Newark Mnseum, of Newark, N. J., has demonstrated. The museum has elevated the ancient advertising figures to the dignity of art by including a number of them in an exhibit of American folk sculpture. They are in good company. The collection includes a bust of Governor Winthrop of Massachusetts, and the famous Andrew Jackson figurehead of the still more famous warship ''Constitution" — "Old Ironsides." According to critics, some of the wooden cigar store figures show a true, if unschooled, artistry in the farmers, sailors, carpenters and blacksmiths who made them. As a method of selling tobacco, however, they have long since disappeared in favor of live, informa- tive advertising that reaches the whole public through newspapers and other means. The few remaining are reminders of a change in our cigar taste — a change for the better, since it includes the introduction of machine methods which insure the maximum of sanitary protec- tion to the smoker. The emphasis placed on modern sanitary methods is admirably illustrated by one well- known five-cent cigar Avhich is actually finished under glass. Most of the cigar store figures have gone for fire- wood, and the survivors are looked upon as valuable antiques. Among the figures at the Newark Museum is "Jenny Lind." The "Swedish Nightingale," w^earing an early Eugenie hat, is coyly lifting the hem of her skirt from the dust of the street, displaying a lacy petti- ^ Jenny L/no coat, while with the other hand she boldly proffers a bunch of cigars to the public. Another "cigar store lady" is a wooden Indian squaw. Her past is uncertain, but she is undoubtedly an early member of her tribe. There is also a w^ooden figure of a French-Cana- dian trapper, which had stood in front of a cigar store near Stockbridge, Mass., since the Civil War. When he first took his post, machine-made cigars and cello- phane wrappings were far in the future, and sanitary methods of cigar manufacture were not demanded by customers. How far from the traditional cigar store Indian type some of the wooden figures varied is seen in "Cap- tain Jinks." Not even Jenny Lind could be more the antithesis of savagery than he. The image of civilized poise and reserve, he stood with crossed arms in front of a tobacco shop at one of Newark's busy corners, and protected by a high collar, never worried about his Adam's apple. BELGIUM INCREASES TOBACCO DUTIES The Belgium Government has increased the im- port duties on leaf and manufactured tobacco, and sev- eral other items, effective November 27th, 1931. The principal new duties which became effective on the above date are as follows, in francs per 100 kilos, with former rates shown in parentheses: Unmanufactured tobacco, stemmed, 650 (480) ; other, 350 (240) ; manufactured tobacco, cigars, and cigarettes, 2100 (1800); pipe tobacco, chewing tobacco and snuff, 800 (600). EHRLICH & 6ERTZ 25 YEARS IN CIGAR TRADE HRLICH & GERTZ, of Chicago, 111., manufac- turers of "Cyrus The Great" cigars, cele- brated the twenty-fifth anniversary of the be- ginning of their business on Friday, Janu- ary 8th. The day was one of festivity for the members of the firm, the employees and the many friends of the owners. An elaborate lunch w^as served to all. There was an abundance of flowers from their well-wishers, and in addition scores of congratulatory telegrams were received from their dealers, jobbers and friends. M. B. Kamnitzer wired, "To the makers of one of the best Havana cigars produced in this country who from small beginning and without advertising except from mouth to mouth developed "Cyrus The Great" into one of the best sellers in the State, I extend my heartiest congratulations on their silver anniversary and best wishes for their future success." Ehrlich & Gertz started twenty-five years ago as a buckeye factory. Starting from scratch, the boys built the business to a point where it is one of the leading factories of Chicago employing between seventy-five and one hundred hands. AMERICAN TOBACCO TO RENEW TENNESSEE ADVERTISING According to Printers' Ink, Cranston Williams, secretary-manager of the Southern Newspaper Pub- lishers ' Association, has sent the following information to members regarding the effect of the change in the law in Tennessee requiring manufacturers, wholesalers or jobbers to affix the revenue stamps on cigarette pack- ages, so far as cutting the cellophane wrapper is con- cerned : ' ' I have been informed that the Tennessee Commis- sioner of Revenue no longer insists on the slitting of the cellophane wrapper so that the stamp can be placed on the original package. The amendment to the law pro- vides that stamps shall be affixed in such a manner that they cannot be removed without mutilating or destroy- ing them. Any method that may be used to reach the desired result will be satisfactory with the Sales Tax Division of the Department of Finance and Taxation. An order covering the matter is expected to be issued in a few days by the Department in Nashville. "In the meantime, information has been received that the American Tobacco Company expects to put Tennessee newspapers on their list for the January advertising campaign, starting January 5." The American Tobacco Company, as previously reported, had stopped advertising in Tennessee, stating that its cigarette advertising featuring the package would be inconsistent under the previous ruling. 1931 MANILA CROP MARKETED The 1931 crop in the Philippine Islands has been marketed and the buying season came to an end the latter part of November. Reports from Manila state that large quantities of Philippine tobacco was pur- chased by Japan and by some of the European coun- tries. Shipments of filler tobacco stripped and booked to America increased during the month of November. UNITED CIGAR STORES DIVIDEND ^ On January 6th the board of directors of the United Cigar Stores Company declared a quarterly div- idend of $1 on the preferred stock of the company pay- ?c ? ^^^ruary 1st to stockholders of record January loth. Previous payment was $1.50 on this stock. RAMIREZ RESIGNS AS SECY. TAMPA. ASSN. RAMIREZ, who has been secretary of the Tampa Cigar Manufacturers' Association for more than ten years, resigned from that posi- tion effective with the New Year, and Francis M. Sack, formerly associated with the Tampa Chamber of Commerce, has been elected to succeed him. Mr. Ramirez is head of the cigar manufacturing firm^ of A. Ramirez & Company and is also interested in cigar retailing and his resignation from the Cigar Manufacturers' Association was caused by the fact that he found it necessary to spend more of his time in con- nection with his private business interests, and having the interests of the Cigar Manufacturers' Association also at heart, he felt that they needed a man who could devote his whole time to the affairs of the association. M. Bustillo, of M. Bustillo & Merriam, was re- elected president of the association, with Pancho Gon- zalez, of Garcia & Vega, vice-president, and W. T. ^[or- gan, of the Morgan Cigar Company, treasurer. Direc- tors elected are: Mariano Alvarez, of A. Santaella & Company; Jose Arango, of Jose Arango & Company; Leonidas Arango, of Arango y Arango; Jose P. Perez, of Marcelino Perez & Company; Edward Man- dell, of Wengler «fe Mandell, and Fred Davis, Jr., of Schwab, Davis y Ca., who was elected to succeed John Levy of the same company. Three new members were elected to the board as follows : D. B. McKay, former mayor of Tampa ; Carl Brorein, former president of the Tampa Chamber of Commerce, and James W. ^forris, attorney. DEPRESSION PROOF Doubting Thomases who have given skeptical ears to the notion that there will be a respectable group of companies advancing claims this year to being "depression proof" may now have a look at the first evidence coming to hand. The first big company to report high earnings for 1931 is the R. J. Reynolds Tobacco Company. Indeed, its 1931 earnings are so high that they constitute a record for the enterprise, standing at $36,396,810, compared with $34,256,664 for 1931. Dividends totaling $30,000,000, the same as in 1930, were paid out in 1931. There will ha other big companies to show similar increase in earn- ings, it is confidently expected. While the group will be nowhere near so large as after a year of general prosperity, there will be just enough to show skeptics that business has not gone completely to the dogs, what- ever they may believe. That business has been bad, that 1931 has been little short of disastrous Irura a broad point of view, tliere can be no doubt. But it is well to note that there have been enough companies to make a successful showing to indicate that such a show- ing was possible and remains possible in the future. — Neiv York Herald-Tribune. FORMER CONGRESS NEW YORK MANAGER DIES Charles S. Parker, who was manap:er of the (Con- gress Cigar Company's New York distributing branch up until a few weeks ago, when he was succeeded bv Max Berliner, passed away on January 61 h in ilic Hotel New Yorker, where he resided, following a short illness. Mr. Parker, although only forty-seven years old, had had a number of years' exporionee in the cigar industry, having been associated with the General Cigar Company, the American Tobacco Companv, and also as manager of the Philadelphia branch of the American Cigar Company in previous years. Funeral services and interment were held in Wetumpka, Ala., his former home. 16 52nd year THE TOBACCO WORLD January 15, 1932 UNITED STOCKHOLDERS MEET JANUARY 20 EORGE K. MORROW, chairman of the United Stores Corporation, has called a special meet- ing of its stockholders for January 20th to vote on the acceptance of a previously announced plan for the reorganization of the Tobacco Products Corporation, in which United Stores owns a majority of both class A and common stock. United Stores stockholders are asked to exchange the class A shares of Tobacco Products for debentures of a new company to be called Tobacco Products Cor- poration of New Jersey, and to exchange common stock of Tobacco Products for stock of another proposed company. Tobacco Products Corporation of Delaware. The Tobacco Products Corporation of New Jer- sey w^ill hold the lease agreement with the American Tobacco Company, and the Tobacco Products Corpo- ration of Delaware will hold the stock of the New Jer- sey corporation. Mr. Morrow states in a letter to stockholders that one of the reasons suggested for reorganizing Tobacco Products Corporation is the difference between the market value of its stock and the value at which it is held by United Stores Corporation. Although the value of United Stores Corporation's holdings on No- vember 30th would have been $28,647,703, he adds, the market value is approximately $13,711,930, a difference of $14,935,773. THIRTEEN STATES LEVY CIGARETTE TAX According to- Dorrance, Sullivan & Company, ad- vertising agents. New York City, only ten States have left unconsidered the possibility of taxing cigarettes. Of the remaining, 38, 13 now impose a tax, 23 having rejected the proposed legislation, and two have voted a tax w^hich was later defeated in a popular referendum. The following States tax a pack of twenty cigarettes, as follows. Revenue is for the past twelve months, for all tobacco products. Although Tennessee does not levy the highest taxes, her revenues were the greatest for any State reporting. State Tax Revenue Alabama 15% $1,425,217 Arkansas 5^ 1,052,818 Georgia 20% 840,000 Iowa 2^ 1,401,436 Kansas 2^ 721,161 Mississippi 20% 563,256 North Dakota 3^ 355,000 Ohio 2it South Carolina 3^ 1,975,371 South Dakota 3^ 487,991 Tennessee 4^ 2,250,000 Texas 3^ Utah 2^ 187,612 *Law not in effect one year. BAYUK DISTRIBUTOR IN NEW QUARTERS The AVashington Tobacco Company, Washington, D. C, has recently moved into new and larger quarters in that city at 631 Massachusetts Avenue N. W. The officers of the company are : F. A. Davis, pres- ident ; C. L. Conrad, treasurer, and W. C. Evans, secre- tary. This firm is one of the oldest and largest distribu- tors of tobacco products in the South, distributing the products of Bayuk Cigars, Incorporated, The I. Lewis Manufacturing Company, Webster-Eisenlohr, Incorpo- rated, and others. CUBAN GROWERS IN DIFFICULT POSITION CCORDING to Commerce Reports, Cuba's eco- nomic position throughout 1931 was less satis- factory than during the preceding year, and evidenced a further recession from the sub- normal conditions that prevailed in 1930, there being a steady decline in business activities. There was a marked decrease in returns from Cuba's principal cash crop — sugar — owing to a large restriction in the crop and a continuation of the low prices prevailing in the world markets for this commodity. This factor, together with a sharp drop in the price of tobacco, Cuba's second cash crop, and decreased tourist's expenditures, were mainly responsible for Cuba's further economic recession. Tobacco has suffered considerably from decreased demand in foreign markets, together with reduced do- mestic consumption. As a result, the 'prices through- out the year were at unremunerative levels and the in- come of the Cuban tobacco growers decreased to such an extent that many were unable to meet their supply bills and acquire the necessary materials to prepare for the next crop. In general, the minor crops suffered relatively little. PENN TOBACCO CO. DOUBLES WORKING FORCE The Penn Tobacco Company, at Wilkes-Barre, Pa., found it necessary to double its w^orking force during the month of December, and now employs approxi- mately two hundred fifty persons. The increase in the number of employees is the result of the tremendous demand for a new product of the company recently placed on the market. It is the now popular little cig- arette-rolling device, and the product of the Penn To- bacco Company may be carried around in the pocket. Orders arrived so fast that the factory w^as pushed to capacity, with some of the departments operating two shifts and other departments working three shifts each day. DAVE MORRIS IN NEW ENGLAND David Franklin Morris, tobacco agent for the Phil- ippine Government is calling on the cigar trade in the New^ England States where he is always sure of a warm welcome. REYNOLDS EARNINGS (Continued from Page 3) $6,396,816 left over after the payment of dividends on the common stock and the new Class B common stock. The capital account, including $100,000,000 of stock out- standing and undivided profits, now stands at $162,- 233,341. The balance sheet showed current assets of $140,461,298, against current liabilities of only $12,219,- 047, an unusually strong position for a corporation, but especially during a period of general depression. Cur- rent assets consisted of $34,479,270 in cash, $9,995,000 of United States Government securities due in 1932, $10,206,149 in accounts receivable and $85,780,878 for inventory of leaf tobacco, supplies and manufactured materials. The bulk of current liabilities consisted of accrued taxes and other accrued accounts amounting to $7,898,964. Net w^orking capital of the company, owing to the heavy preponderance of current assets over current lia- bilities, stood at the substantial figure of $128,242,251. The bulk of total assets of $176,856,099 are made up of current assets. All other items, including real estate and investments, totaled $36,394,800. January 15, 1932 Say You Saw It in The Tobacco World 52nd year 17 News from Congress {Contimied from Page 10) General Tariif Revision Planned General revision of the rates of the Hawley-Smoot tariff bill next year is planned by the Democrats, it was divulged this month by Chairman Collier, of the House Ways and Means Committee. Engaged in a w^rangle with Republican members of the committee over legislation proposing an inter- national tariff pact and reorganization of the Tariff Commission procedure. Representative Collier unwit- tingly let it be known that the Democrats plan whole- sale changes in the tariff at the earliest opportunity. Pressed for details regarding the plan. Chairman Collier refused to amplify his statement, but let it be understood that the Democrats would frame the bill and would lay it before the Republican minority in a **take it or leave it" spirit in retaliation for the alleged refusal of the Republicans to give them a fair oppor- tunity to participate in the w^riting of the present law. Results of Bankruptcy Investigation to Be Revealed Results of eighteen months of exhaustive investi- gation into the operations of the bankruptcy law by the Department of Justice will be transmitted to Con- gress by President Hoover in the near future, coin- cident with the issuance by Attorney General Mitchell of an explanation of the situation in order that Con- gress may have available to it an adequate background for amendment of the statute. The Attorney General will explain that the present bankruptcy law has failed to achieve its purposes, has not insured a prompt and efficient realization and pro rata distribution of assets of insolvent debtors and has not discouraged commercial fraud and dishonesty by denial of discharges. There are manv obvious defects in the adminis- trative processes and, in order that they may be pre- sented concretely, the conclusions reached as a result of the department's inquiry have been embodied in proposed amendments to the existing law, prepared by the department. The Attorney General holds the opin- ion that Congress probably never will have available to it more thorough and exhaustive information as to the operations of the present statute than has been ob- tained by this inquiry. Tariff Changes Planned to Cover Monetary Changes Legislation to empow^er the United States Tariff Commission to ascertain the value of imports prior to changes in monetary standards and subsequent thereto, and to levy additional duties accordingly is proposed in a bill introduced in Congress by Senator Jones, Re- publican, of Washington. Anticipating an argument against the passage of such legislation on the grounds that it delegates legis- lative power to the commission, the Senator explained in introducing his measure that he had laid down a very concrete, definite and fixed rule to control and govern the tariff commission which he believes will meet all objections. His proposal provides for the imposition *'upon all products, whether now on the free or dutiable list, im- ported from a country, including its dependencies, that has changed its monetary standard within two years prior to the passage of this act, or may hereafter make such change, an additional tariff duty approximately SMM2^ Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. ^ifrA^ir^virrSNir^^irrwri^virj^xir^flri^viri^v^ FOR SALE FOR SALE— APPROXIMATELY 70,000 POUNDS, PACKED WEIGHT, Southern Wisconsin tobacco — 3 to 12 years old. L. G, Anderson, 2127 Iowa Street, Chicago, 111. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco melCow and smooth in character and Impart a most palatable flavor FUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. AMOHATIZEI. BOX FLAVOIS. PASTE SWEETENEBS FRIES 8k BRO., 92 Reade Street. New York MORE WOMEN BUY CIGARETTES ORTY PER CENT, of the customers at one of the big cigarette stores at Fifth Avenue and Forty-second Street in New York City are women, according to "Advertising & Selling," journal of the advertising field. A great part of the increase in the production of cigarettes is attributed to smoking by women, who more frequently than in the past are reaching for cigarettes from which certain harsh irritants have been removed by modern methods of manufacture such as the toasting process including the use of ultra violet rays. The ancient prejudice against smoking by women has long since passed and women in all parts of the country are smoking as many cigarettes as they please. The same store in New York which now has 40 per cent, women customers had 20 per cent, women customers six years ago. These fig- ures are definite proof of the increasing number of women who are reaching for cigarettes. equal to the difference between the value, as defined in Section 402 of the tariff act of 1930, of such imports prior to such change in monetary standard and such value of such imports after such change in monetary standard. ' ' It is provided that upon return of any country to its original monetary standard the increases in duties applied against its products shall be abolished within three months. FEBRUARY 1, 1932 I 18 52nd year Say You Saw It in The Tobacco Wokld January 15, 1932 Tobacco Merchants' Association Registration Bureau, StV^Jo^^d^ Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Eegistration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowance of $2 will be made to members of the Tobacco Ifw chants' Association on each registration. Note B— If X report on a search of a title necessitates the reporting of mors than ten (10) titles, but less than twenty one (21), an additional charge of On* Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-on- (31), an additional charre of Two DolUrt ($2.00) will be made and so an auditional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. Decem- Y. Decem- Y. REGISTRATIONS TOBAKETS: — 45,970. For cigars, cigarettes and tobacco ber 16, 1931. Faber, Coe & Gregg, Inc., New York, N TOBACETS: — 45,971. For cigars, cigarettes and tobacco ber 16, 1931. Faber, Coe & Gregg, Inc., New York, N TOBAQUETS: — 45,972. For cigars, cigarettes and tobacco. De- cember 16, 1931. Faber, Coe & Gregg, Inc., New York, N. Y. PENGUIN :--45,975. For all tobacco products. December 28, 1931. Christian Peper Tobacco Co., St. Louis, Mo. WARRENTON: — 45,976. For smoking pipes only. December 31, 1931. The O. D. Pipe Factory of America, Fall River, Mass. TRANSFERS SAM GOMPERS:— 18,132 (Tobacco Leaf). For cigars. Registered December 15, 1899, by the American Litho. Co., New York, N. Y. Transferred by Consolidated Litho. Corp., Brooklyn, N. Y., to Cigar Makers Co-operative Association, Reading, Pa., December 15, 1931. (The transferors having acquired the cigar department from the original registrants.) TWIN TOWERS:— 45,937 (T. M. A.). For all tobacco products. Registered September 3, 1931, by D. Emil Klein Co., Inc., New York, N. Y. Transferred to John Henry Miller, New York, N. Y., December 22, 1931. REVIEW OF THE UNITED STATES TOBACCO EXPORT TRADE JAN. TO NOV., 1931 LTHOUGH the exports of leaf tobacco from the United States showed a slight increase during tlie month of November, as compared with November, 1930, the increase was insufficient to offset the downward trend in leaf exports for the year, according to an interpretation of official trade data by the Tobacco Division of the Department of Commerce. Exports for November, 1931, amounted to 58.4 million pounds compared with 58.0 million in 1930. The total leaf exj)orts for the full eleven months (January to November of the current year) amounted to 467.9 mil- lion pounds, compared with 517.6 million pounds during a corresponding period of 1930 and 499.4 million pounds in 1929. It is not reasonable to suppose that the Decem- ber exports will fall below 60 million pounds, thus the total leaf exports during the full year 1931 will prob- ably be about 528 million pounds or more. During a period of normal production and con- sumption, leaf exports for the iirst eleven months of the current year are about what they should be, but the past three tobacco crops have been greater than normal and consumption in the United States began a down- ward trend in 1930. The latest reports of the United States Department of Agriculture show a total leaf production of 1610 million pounds in 1931 compared with 1635 million pounds in 1930, and 1537 million pounds in 1929. The total leaf consumption in factories in 1930 was 784 million pounds ; and 810 million pounds in 1929. No consumption data are yet available for 1931, but the output of products from January to Octo- ber shows the following declines, compared with a simi- lar period of 1930: Cigars, 9.4 per cent., output, 4842 million in number; cigarettes, 4.6 per cent., output, UNITED SUES FOR RIGHT TO SELL MAGAZINE HE UNITED Cigar Stores Company of Amer- ica, in New York, announced last week that it had begun an action in Supreme Court against the Dell Publishing Company and George T. Delacorte, Jr., publisher and editor, respectively, of the magazine ' * Ballyhoo, ^ ' and against the American News Company, sole distributors of the magazine, and vari- ous newsdealers in New York for damages and an in- junction restraining the defendants from refusing to sell '^Ballyhoo'' to United Cigar Stores and the Whelan Drug Company, its subsidiary, for resale in cigar and drug stores. The complaint alleges that the plaintiff, at the re- quest of the publishers of the magazine, sold the Octo- ber issue in cigar and drug stores, and that newsdeal- ers' associations complained to the publishers. As a result of this complaint, the suit states, the publishers and the American News Company did not fill orders for November, December and January issues of ''Bally- hoo" '*to the plaintiff's great damage." LOFT CANDY SALES INCREASE Loft, Incorporated, which now includes the former Happiness Candy Stores, reports sales of $14,318,523 for 1931, an increase of $4,762,423. For December the sales amounted to $1,862,847, an increase of $291,750. George M. 0 'Neil, secretary, said that during the year the company showed a gain in customers of 6,851,434, or 25.4 per cent. 98,308 million; smoking and chewing tobacco, 1 per cent., output, 280 million pounds. Snuff production during the ten months increased by .8 of 1 per cent., amounting to 34 million pounds. Very little change was noted during November con- cerning the various types exported and the situation remains about the same as at the end of October. Ex- ports of flue-cured tobacco picked up a little, but not enough to raise the eleven-month total (339 million pounds) to a level of 1929 and 1930. Exports of stems, and trimmings maintained a consistent increase which has characterized their movement throughout the year. Exports of all other types declined, the darks of Ken- tucky, Tennessee and Virginia suffering the most. The total leaf exports for the first eleven months of the year were valued at about 98 million dollars, com- pared with 129 million in 1930 and 128 million in 1929 ; the respective export prices per pound were 20.9 cents, 25.1 cents and 25.8 cents. Prices on foreign markets have held up better than domestic prices, the average farm price in 1931 having been 9.7 cents compared with 12.9 in 1930 and 18.6 cents in 1929. Total Production Total Exports Pounds Pounds 1929 1,537,193,000 565,901,875 1930 1,635,210,000 579,703,553 1931 1,610,098,000 ( Jan.-Nov.) 467,890,239 There was a slight increase in the exports of smok- ing tobacco in November, 1931, compared with the same month, previous years; all other products declined. The total exports of all tobacco products during the first eleven months of the year amounted to 8 million dollars, compared with 12 million dollars same period 1930, and 18 million dollars 1929. The export market for cigarettes has been characterized throughout the last two years by sharp declines, nevertheless cigarette exports represent three-fourths of the foreign sales of tobacco products. The Name "Autokraft" is a Guide to Quality and Value in Cigar Boxes AUTOKRAFT BOX CORPORATION welcomes the opportunities of the New Year to increase its field of usefulness to its customers, and to assure them of the maintenance of the highest standards for its product. In 1932 principles established by past experience will be joined with new ideas and new methods for the production of a container which will exemplify the finest type of package. Our reputation as manufacturers of quality boxes will be supported by ceaseless effort to serve our customers with the most satisfactory product that mechanical invention and human skill can fabricate. The new AUTOKRAFT wooden cigar box represents in character, and in indis- pensable values to the cigar itself, a container which meets the challenge of com- petition. P/i/7a.. Pa. Hanover, Pa. Cincinnati, Ohio S Kansas City, Mo. AUTOKRAFT BOX CORPORATION Lima Ohio ioit\ f^ ^ Ser^^ce York, Pa. Chicago, III. Detroit, Mich. Wheeling, W, Va. PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST., PHILA., PA. y i)^vmM^}M}iMM}JJ^U&^}M}iMM}^MM}JM^^^ ; i8'4l«WW?/X^WWWWl««lXS<,'lV8/^ WOODEN BOXES ncrease KlN > UKITED STATES TOBACCO COMPANY NET GAINS United States Tobacco Company reports for 1931, net profit of $3,020,779 after depreciation, development of brands, contingencies and Federal taxes, equivalent after 7 per cent, preferred dividends to $6.20 a share on 457,850 no par shares of common stock. This com- pares with $2,950,818, or $5.60 a common share in 1930. THE CAPPER-KELLY BILL AGAIN PROPOS of the hearings on the Capper-Kelly Resale Price Maintenance Bill, which is before the Senate Committee on Interstate Commerce at the present time, the editor of the Modern Merchant and Grocery World aptly puts the whole question as to whether this bill should become law or not in the following manner: *'The Capper-Kell)^ bill is in Congress again and hearings are being held on it in Washington now. The Capper-Kelly bill would authorize the manufacture of a trade-marked article to forlud price cutting in con- nection with it. In other words, the manufacturer could tell retailers what he wanted them to resell for, and tliev would have to do it. "Another serious blow at chain store methods, and if a sufficient number of manufacturers went along with it, the professional cutter would find most of his occupation gone. **The best argument that could possibly be made for the passage of this bill was made a week ago by the Federal Trade Commission, in its report to the Senate on chain stores' methods of handling price leaders. That report wasn't filed at the time it was, with any idea of influencing the Capper-Kelly bill action, but it nevertheless went in at the absolutely psychological moment. It established it as a fact that chain stores, as a regular habit, take this or that nationally known brand, and sell it sometimes at more than 20 per cent, loss. A boy could see of course that there was no legitimate competition in that — it was slaughter, done solely to attract customers, and no independent with one store could possibly follow. **The question which is before Congress, in its con- sideration of the Capper-Kelly bill, is therefore this: Ought it to be legal for a chain store system, with a thousand times the resources of the independent who must compete with it, to take a standard piece of mer- chandise and sell it at a loss of over 20 per cent. — or at 30 per cent, loss if it sees fit to do it — not to move it or for any other reasonable reason, but solely to dupe people into its stores, when the result is to greatly de- preciate the particular brand as an article of merchan- dise, and prevent legitimate merchants from selling it at all? "That is the question, and a lot of people are hope- ful that Congress may answer it in the negative. 1 feel they are closer to answering it that way than they have ever been before. ' ' This bill is receiving plenty of opposition, and if the independent retailers of the country are interested in having this bill become law, it would be a good thing for them to write or wire their Senators and Con- gressmen in Washington urging them to vote in favor of the bill. 52nd year THE TOBACCO WORLD February 15, 1932 February 15, 1932 Say You Saw It in The Tobacco World 52nd year '% TOBACCO REVENUE DROPS HE Internal Revenue Bureau at Washington re- ports that for the 1931 calendar year, use of cigars and cigarettes dropped away sharply, while consumption of manufactured tobacco remained about stationary. Cigars taken out of bond numbered 5,318,892,528, a decrease of 571,000,000, and the number of cigarettes was 113,449,048,657, a decrease of 6,200,000,000. The use of playing cards increased, the figures in- dicated, with tax being paid on 48,683,675 decks, against 47,895,217 decks the last year. Tobacco returned a total of $424,532,735 in revenue to the Government last year, as compared with $446,- 156,354 the previous year. The cigar tax dropped $3,000,000 to $16,389,164, while the cigarette tax fell off approximately $18,000,000 to $340,397,045. Manu- factured snuff and tobacco returned $66,152,933, a drop of $251,000. Cigarette papers brought slightly in- creased revenue of $1,593,591, as compared to $1,401,643 the previous year. North Carolina, as usual, led the way in the cigar- ette tax with a return of $215,841,193. This was a de- cline, however, of approximately $16,000,000 from the previous year, while Virginia returned $84,135,220, an increase of $2,100,000. Pennsylvania, with total revenue of $4,952,894, led the way in cigar production, but showed a decrease of $950,000 against the previous year. New Jersey re- turned $2,445,456, a drop of $355,000, while Connecticut reported $2,161,914, a fall of $380,000. New York again led in tax on bonds of indebted- ness, capital stock issues, etc., and capital stock sales and transfers. The state returned $6,184,111 for the former, which was a decline of $5,800,000 and $19,924,- 942 for the latter, a decrease of $11,000,000. The total tax on bonds of indebtedness, capital stock issues, etc., was $10,964,169, as compared with $20,037,078 in 1930, while that on stock sales and trans- fers was $22,383,706, against $33,827,529. The total stamp tax last year was $39,326,694, against $61,172,403. BAYUK CIGARS EARNINGS Bayuk Cigars, Incorporated, for 1931 reports profit of $255,751 after depreciation, interest, etc., but before reserves of $1,107,012 for adjustment of inven- tories of cigars and tobacco which were charged against surplus account. This compares with net income of $580,581 after depreciation, interest. Federal taxes, etc., equivalent, after preferred dividends, to $3.04 a share on 98,851 no par common shares in 1930. The balance sheet shows notes payable had been reduced during the year from $2,550,000 to $700,000. GENERAL CIGAR EARNINGS General Cigar Company reports net profit of $2,720,667 for 1931, equivalent after preferred divi- dends to $5.01 a share on 472,982 shares of common stock. Current assets were $27,104,605 and current lia- bilities were $1,360,659, compared with current assets of $27,030,564 and current liabilities of $1,681,513 in 1930. DR. AARON H. BALLIET DEAD p. AARON H. BALLIET, of Allentown, Pa., who operated one of the largest cigar box fac- tories in the country, passed away on Satur- day, February 6, in St. Anthony's Hospital in St. Petersburg, Fla., in his sixty-fifth year. Dr. Balliet entered the cigar box business about 1900 when he became associated with Walter Biery who operated the Eagle Cigar Box Factory. In 1906 he acquired his partner's interest and developed one of the largest plants in the country. In more recent years he patented mechanical equipment which enabled him to produce cigar boxes under the most modern methods of manufacture. During his lifetime he served many of the most important cigar manufacturers in the East with their cigar boxes. In addition he operated a cigar box lum- ber manufacturing plant and in recent years sold Span- ish cedar cigar box lumber. Walter Wolf, purchasing agent of the General Cigar Company, and Mr. Gross, district factory super- intendent of the same company, were among the repre- sentatives of the cigar industry in attendance at the services. He is survived by his widow, the former Anna Morgan ; one daughter, Mrs. Rodgers Neely ; one grand- daughter, Jane Neely; and one sister. Miss Ada M. Balliet. Services were held on Tuesday, February 9, at his late residence, 1412 Hamilton Street, Allentown, Pa. Interment was in Fairview Cemetery, Allentown. CHAIN STORE SALES Dominion Stores — For five weeks to January 30th gross sales amounted to $2,187,906, compared with $2,322,765 for the like period in 1931, a decrease of 5.80 per cent. Great Atlantic and Pacific Tea Company — Sales for four weeks ended January 30th amounted to $68,- 966,599, compared with $78,814,870 for the like four weeks in 1931, a decrease of 12.5 per cent. Tonnage sales for the month were 395,428, compared with 410,807 last year. American Stores Company — Reports for January sales of $10,120,540, compared with sales of $12,497,110 for the like month in 1931. This is a decrease of $2,376,570, or 19 per cent. Exchange Buffet, New York, reports sales totaling $3,714,519 for nine months ended January 31, 1932, as compared with $4,517,551 for the same period ending January 31, 1931, a decrease of 17.77 per cent. Sales for January, 1932, were $414,752, as compared with $512,147 for January, 1931. ** Target" cigarette-making machines and tobacco were introduced in New York City last week. Window demonstrations are drawing huge crowds. The niakers, Brown & Williamson Tobacco Corporation, Louisville, Kentucky, have received even a greater volume in the big city than in any other part of the country. ** Tar- get" is repeating its success and now has a nation- wide distribution. The slogan, * 'thirty or more cigar- ettes for a dime," is putting ** Target" over big. ''Target" cigarette tobacco advertising is now appear- ing in a long list of magazines, farm papers and country papers. XATCRALLY FRESH never parched^ never toasted! The cool, flavorful freshness of Camel cigarettes is purely a natural product. It is attained not by any mysterious processes, but simply by preserving the full natural good- ness of fine sun-ripened tobaccos. These choice tobaccos of which Camels are blended — fine Turkish and mild Domestic tobaccos — are never parched or toasted. On the contrary we exercise every care and "Are you Listenin'?" R.J. REYNOLDS TOBACCO COMPANY'S CAMEL QUARTER HOUR, Morton Downey, Tony Wons. and Camel Orchesua, direction Jacques Renard, every night except Sunday, Columbia Broadcasting System precaution to safeguard the natural moisture which is infused with their mildness and flavor. That's why the Camel Humidor Pack is such a boon to Camel smokers — it could do little or nothing except for the fact that the cigarettes we put into it are fresh to start with. To see what that means in cool, smooth, throat- friendly smoking pleasure, switch to fresh Camels for just one day — then leave them — if you can! R. J. REYNOLDS TOBACCO COMPANY. WinstoH-Saiem, N. C COAST-TO-COAST RADIO PROGRAMS PRINCE ALBERT QUARTER HOUR. Alice Joy. "Old Hunch," and Prince Albert Orchestra, every night except Sunday, N. B. C. Red Network See radio page of local newspaper for time Don't remove the moisture-proof •wrapping from your package of Camels after you open it. The Camel Humidor Pack is pro- tection against perfume and powder odors, dust and germs. In offices and homes, even in the dry atmosphere of artificial heat, the Camel Humidor Pack can be depended upon to deliver fresh Camels every time © 1932. R. J. Reynolds Tobacco Company Cam e ls Made FRESH — Kept FRESH I 52nd year THE TOBACCO WORLD February 15, 1932 February 15, 1932 Say You Saw It in The Tobacco World 52nd year "HABANELLO" DISTRIBUTION EXPANDING EGRGE ZIFFERBLATT & COMPANY, manu- facturers of the '^Habanello" brand, report tlie opening of several new jobbing accounts recently. These new accounts include Tink- ham Brothers, Incorporated, of Jamestown, N. Y., with branch offices in Buffalo, and they will distribute the * * Habanello ' ' cigar in those territories. Amedee Levie, western representative of George Zifferblatt & Company, has opened a jobbing account with the IMcKesson-Minneapolis Drug Company, :Min- neapolis, Minn., and the "Habanello" is meeting with a good demand there under their leadership. H. S. McGinness has recently been doing some verv successful work in opening new accounts on ''Habanello" through the Pittsburgh, Pa., distributors, Bock-Stauffer Company. TRADE JOTTINGS James Heaney, representing the American Cigar Companv on their ''Antonio y Cleopatra," was a vis- itor at Yahn & ^McDonnell headquarters, 617 Chestnut Street. "Antonio y Cleopatra" cigars have been en- joying a steady demand here under their direction. Yahn & :McDonnell report a good demand for "Blackstone" and "Optimo." E. A. Kline, head of the "Medalist" firm, was a visitor at John Wagner & Sons, local distributors, last week. The "Medalist" brand has a good steady sale here in spite of "Lady" Depression, which Mr. Kline so kindlv calls her. However, we don't consider her a "lady.'" The "Carl Upmann" cigar is showing a steady increase in demand in this territory under the direction of John Wagner & Sons, local distributors, of 233 Dock Street. The Pocono Cigarette making machine and cigar- ette tobacco has been forcefully demonstrated during the past week in prominent downtown stores and re- ceived earnest attention from the crowds gathered in front of the windows. The Pocono machine and to- bacco are products of the Penn Tobacco Company, Wilkes-Barre, Pa. The individual cigarette making machines and to- bacco have been meeting with an active demand here recently. A. JOSEPH NEWMAN RECOVERS FROM ILLNESS T Bayuk Cigars, Incorporated, headquarters we received the good news that A. Joseph New- man, general sales manager of the company, is back at his desk, having fully recovered from his recent illness, and well prepared to attack the sell- ing campaign of Bayuk cigars with his usual vigor. The Jersey City Tobacco Company, active dis- tributors of Bayuk Cigars in their territory, are de- veloping a splendid distribution and sale on Bayuk products. They have recently been assisted by Messrs. Wright and Munson, of the Bayuk sales force. Rapp & Klein Cigar Company, Bayuk distributors in the Lafayette, Indiana, territory, are increasing their business through the distribution and sale of Bayuk cigars in their territory, and recently had the assist- ance of F. B. Mueller, Bayuk territorial manager, who did some effective promotional work. A. C. Roy, New England territorial manager, Charles L. Steffen, Ohio territorial manager, and Frank H. Goodwin, branch manager of the Boston branch of Bayuk Cigars, Incorporated, were visitors at lieadquarters on Friday, where they conferred on plans for increasing the distribution and sale of Bayuk prod- ucts in their respective territories. E. M. Hirst has been made chairman of the local committee which is assisting the National Association of Advertising Men in their efforts to secure the dona- tion of thirty seconds from the radio broadcasting pro- gram of all local radio advertisers, to be devoted to a vigorous campaign by the Advertising Association to stimulate business. A. First, of the purchasing department of Bayuk Cigars, is receiving the sympathy of his many friends due to the loss of his mother who passed away here last week. Funeral services were held on Thursday, February 11, with interment in Harrisburg, Pa. Mrs. First is survived by her husband, two sons and a daughter. TAX REFUND FOR WEBSTER EISENLOHR Among the tax refunds authorized by the Penn- sylvania Board of Finance and Revenue at Harris- burg, on February 4th, a refund in the form of a credit was allowed Webster Eisenlohr, Incorporated, Philadelphia, $767 on 1930 capital stock tax. ^BO' Copr., 1932, The American TotMcco Co. ""There are no better cigarettes'" HE BOBBED UP SMILING Bob Montgomery has b«en on Iron worker, deck hand, railroad me- chanic and a booed -at extra in Hollyyrood ... He zoomed to the top in noise-reels because the gals were cuh-razy over his grin . . . And they'll go completely zooey when they see him in his latest M-G-M/'LOVERS COURAGEOUS" . . . He's stuck to LUCKIES these last 7 years . . . Not a buffalo nickel was paid for his statement r . . He gave it just for a pteas- Ont "Thank You." *1 have always used LUCKIES— as far as I am con- cerned there are no better cigarettes— congratula- tions also on your improved Cellophane wrapper with that little tab that opens your package so easily.** "It's toasted Your Throat Protection » afloiint Irritation — ggatni t cough Amf Mol»Uif-Proot C«flopfian« K—p9 that "ToaslMT Flavor Evmr Frmtk 8 52nd year THE TOBACCO WORLD February 15, 1932 LIGGETT & MYERS IN EXCELLENT POSITION ARNINGS of Liggett & Myers Tobacco Com- pany were $23,121,382 last year, or $6.87 a com- mon share. They cover the dividend payments of $5 a share during the year, and permit a further substantial addition to surplus at the end of the year. Earnings in 1930 were $24,002,315, equal to $7.15 a common share, and established an all-time record for Liggett & Myers. Liggett & Myers Tobacco Company was favored last year by low tobacco prices, as well as by a price advance in the last six months of the year. In 1932, company will have the benefit of higher price for cig- arettes for the full twelve months, and will be aided by lower average j)rices for tobacco. Working capital of $151,134,177, as of December 31, 1931, was up about $6,000,000 over the position at the end of 1930, and around $27,000,000 over working capital on December 31, 1929. Cash holdings and secu- rity and bond investment, at the end of 1931, totaled $55,500,000, against $37,999,000 at the end of 1930. Re- duction of $11,000,000 in inventory was due, at least in part, to low tobacco prices. The smoking tobacco business held up well during the year, a trend forecast by the Government figures during 1931. "Granger," a smoking tobacco suitable for pipe consumption, has made the most rapid advance in this division of Liggett & Myers ' business. For the latter six months of 1931, Liggett & Myers, like other cigarette manufacturers, had the benefit of the forty-five-cent advance in the wholesale price of cigarettes. Ai^suming that no change will be made in the whole- sale price this year, the benefit of the higher price will prevail for the full twelve months. This favorable fac- tor, however, may be partially offset by the downward trend in cigarette consumption, and by the possibility that further State taxes may cause 1932 consumption of cigarettes to show a greater decline than the 5 per cent, drop recorded in 1931. While most State legislatures are not regularly scheduled for sessions in 1932, the adoption of a cig- arette tax, by any of the more populous States, would have a sevei'ely depressing effect on the industry. The following table compares earnings, common dividends payments, inventory and cash and securities held by the company, including stock in subsidiary com- panies : Common Cash and Earnings Dividends Inventories Securities $23,121,382 $15,684,595 $90,044,682 $55,504,984 24,002,315 14,639,188 101,131,855 37,990,180 13,071,190 103,181,694 13,071,190 92,851,710 10,041,050 9,128,205 7,886,394 4,898,455 4,038,993 3,965,775 Year 1931. 1930. 1929. 1928. 1927. 1926. 1925. 1924. 1923. 1922. 22,017,127 19,408,644 18,743,395 17,636,946 15,289,652 11,969,828 9,622,397 9,724,294 95,893,891 88,546,283 75,088,039 65,999,110 60,153,177 59,550,292 21,550,482 24,676,575 20,358,997 17,735,948 18,574,820 17,672,045 15,706,400 13,977,906 A feature of Liggett & Myers' report for 1931 was the shifting of some of the company's investment from tobacco into preferred stocks and bonds. Inventory, at the end of the year, showed a reduction of approxi- mately $11,000,000, and cash was down nearly $6,000,000. More than offsetting this was an investment in United States Government, State and municipal bonds GENERAL COMPANY SOLD 776,000,000 IN 1931 LTHOUGH production of cigars in the United States declined 9.22 per cent, in 1931, the sales of the General Cigar Company show a de- crease in sales of only .02 per cent. The com- pany sold 776,000,000 cigars last year and its inventory at the end of the year included only 21,000,000 cigars, sufficient for only ten days' average sales. A reduction in the price of the company's *' White Owl" brand in February and again in June, however, caused a decline in the total dollar sales. Current assets of the company on December 31, 1931, were $27,104,605, and current liabilities were $1,350,659, as compared with $27,030,564 and $1,681,513 respectively at the end of 1930. of $20,980,450, and the purchase of preferred stocks, carried at $2,480,785. The already strong position of the company was further improved, at the end of the year, by the addi- tional income not paid out in dividends. Current assets, at the end of the year, amounted to $156,062,104, exclud- ing the company's investment in subsidiary companies. This compared with current assets of $151,082,182 at the end of 1930. Current liabilities on December 31, 1931, were $4,927,927, against $6,067,948 a year pre- vious, leaving working capital at the end of 1931 of $151,134,177, against $145,017,234 at the end of 1930. Compared with working capital at the end of 1929, the 1931 figure was up $27,000,000. The working capital position at the end of the last ten years is compared with the following table : Current Current Working Year Assets Liabilities Capital Surjylus 1931.. $156,062,104 $4,927,927 $151,134,177 $34,072,823 1930.. 151,082,182 6,067,948 145,017,234 28,212,023 1929.. 137,020,397 12,884,303 1928.. 1*27,844,419 10,604,193 3927.. 126,791,839 14,659,711 1926.. 117,464,216 10,172,566 1925.. 115,399,817 4,590,563 1924.. 92,274,435 10,163,181 1923.. 83,336,292 15,817,153 1922.. 79,269,382 16,022,538 124,136,094 *20,424,884 117,240,226 53,764,643 112,132,128 t49,003,17fi 107,291,650 147,818,268 111,107,254 46,286,814 82,109,254 46,459,544 67,519,139 34,964,157 63,246,844 30,956,740 * After writing down brands, trade-marks and goodwill to $1. t Stock dividends of 10% in common B stock. The drop of about 11 per cent, in Liggett & Myers' inventory last year does not mean that the company reduced its actual holdings of tobacco to that extent. Prices for tobacco have moved steadily lower in the past two years, and, currently, are about half what they were several years ago. Thus, an actual increase in the number of pounds of tobacco held for future business could be obscured by a decline in the price at which such tobacco is carried on the company's books. This will be an important factor in the company's profit margin this year. Because of the varying lengths of time which tobacco must be held for curing, it is impossible to estimate what percentage of inven- tories are consumed annually in production. With domestic leaf of all types selling near the lowest prices in the history of tobacco growing, how- ever, Liggett & Myers, and all other producers are in a strong position as regards raw materials. February 15, 1932 THE TOBACCO WORLD 52nd year Written for Smokers who want Hard-pan Facts YOU'VE seen it in Movies ... on bill-boards . . . in newspapers . . . and you've heard it over the radio. The famous slogan, ''They Satisfy." It means Chesterfields click... give smokers what ihey want. Now let us tell you the ''reason why!" Smoke. satisfaction in Chesterfield comes from just one thing . . . our rigid rule of making every Chesterfield cigarette the very best that money and science can produce. That's why Chesterfield tobaccos are the mildest that grow. That's why the paper that's wrapped around Chesterfield is the whitest and purest ciga- rette paper made. That's why we not only blend our tobaccos . . . but cross-blend them. To bring out the fine flavor that is so definitely Chesterfield. Everything the best . . . that's the whole Chester- field story. Milder . . . taste belter . . . pure. Good . . . they've got to be, because they're made that way. That's the reason why Chesterfields satisfy. • Tonight, listen to Chesterfield's Radio Program. Nat Shilkret and his Orchestra and Alex Gray, popular soloist . . . Columbia Coast- lo-Coast Network . . . 10:30 E. S. T., daily except Sunday. THEY'RE MILDER • • THEY'RE PURE • • THEY TASTE BETTER • • • !»»», LMBcnr • Mncs Tomcco Co. ^tltl^Pf 10 52nd year THE TOBACCO WORLD February 15, 1932 News From Congress ^ I Federal Departments From our tVASHiNOTON Bureau 622Aibk BugpiwG -^-j ITH hearings on taxes finally closed, the Ways ^\^ and Means Committee now is engaged in draft- ing the measure to be submitted to the House of Representatives, but presentation of the bill is not expected before the end of the month, the deci- sion not to make the new tax rates retroactive having eliminated all necessity for haste. Warning that a number of excise taxes on com- modities may have to be resorted to in the effort to raise the billion dollars planned by the committee has been issued by Representative Crisp, of Georgia, acting chairman during the illness of Representative Collier, of Mississippi. Reiterating the decision of the committee to bal- ance the budget, Mr. Crisp warned witnesses appearing in opposition to recently suggested new taxes on gas, electricity and telephones that numerous excise taxes must be imposed if this is to be done. The administration program, it was admitted by Undersecretary of the Treasury Ogden L. Mills, will fall short by at least $300,000,000 of raising the amount originally estimated. Accordingly, Mr. Crisp pointed out, it will fall upon the committee to devise means of raising money, and while every effort will be made to impose taxes as little burdensome as possible, some industries, he declared, must fairly face the fact thai they will be taxed. ** Unless the financial stability of the United States is maintained, every citizen of the United States will be adversely affected, ' ' he asserted. * ' In my own judg- ment unless the Federal budget is balanced the Recon- struction Finance Corporation and all other relief measures passed by this Congress will prove futile. ** There will have to be levied many excise taxes for from the income tax, both corporate and individual, and estate tax, it is impossible to raise sufficient rev- enue. The American people must realize the serious- ness of this emergency and be prepared to make sacri- fices for the good of all.'' Higher Duties Proposed to Offset Currency Depreciation Imposition of additional duties upon merchandise from countries whose currencies have depreciated, sufficient to make the customs imposts upon such goods equal to what they would be under normal currency values, and revision of the anti-dumping provisions of the tariff act to prevent the unloading upon our markets of merchandise at sub-normal prices, are provided for in measures introduced in the House of Representatives by Congressman Hawley, of Oregon, ranking Repub- lican member of the Ways and Means Committee. The additional duties would be imposed upon im- ports from countries whose currencies shall be shown to have depreciated 5 per cent, or more since October 1, 1931. Specifically, the measure is aimed at nations which have formally gone off the gold standard and thus are enabled to produce commodities at lower costs than when their currencies were fully guaranteed. It would apply, however, to certain other countries whose cur- rencies have depreciated, although ostensibly still on the gold standard. Comparisons of New York foreign exchange quota- tions since October 1st show that the bill would affect England, Japan, Norway, Denmark, Finland, Portugal, Spain, Sweden and India. There are all told, however, seventeen countries which are off the gold standard. Before the several nations went off the gold stand- ard. Representative Hawley explained, tariff duties on their imports into the United States were figured on the normal exchange value of their currency. Since then, however, these imports have been coming into the United States, figuratively, at lower rates and have thus placed an added burden on our own industries. The measure, he said, places the countervailing duties of the present law in effect on the products of those nations in such fashion as to raise rates to the levels intended. While not advised as to the amount of revenue that would be raised under the bill, he expressed the belief it would run into millions of dollars. Foreign Trade Agreements Being Watched Efforts of foreign countries to pull themselves out of depression by making preferential trade agreements with individual nations which are good markets for them and whose products, in turn, they use, by the imposition of import quotas or by other similar ex- pedients, are being closely watched by the State De- partment, which last month lodged a strong protest with France against quotas imposed upon the importa- tion of certain products which, it is declared, do **not take due account of the present position of the Amer- ican industry in the French market. ' ' The attitude of the United States has always been one of non-interference with the tariff duties of foreign nations so long as there is no discrimination against this country's commerce, but does closely watch quotas and preferential agreements which, in the opinion of the Government, are per se discriminatory. **This Government is definitely opposed to any system of quotas in international trade, ' ' the State De- (Continued on Page 14) February 15, 1932 Say You Saw It in The Tobacco World 52nd year 11 PROFESSOR WINCHELL HE serious minded have often wondered just why it is that slang, colloquialisms, and the novel expressions of columnists and certain modern rhymesters have such tremendous ap- peal to the public. If you are an educator or a profes- sional student it is quite possible to get stirred up about it, for you view these exponents of invention as betray- ers of the purity of the language. Still, the Bowdoin Orient has again established by a poll that there are a few men of letters who are not particularly alarmed. One Walter Winchell is probably the dean of the contemporary language manglers. Upon his head is heaped the condemnation of those who feel that the English language is satisfactory as it is and the praise of those who welcome his unique -contributions. More than any other living American, whether we like or not, he is putting many perfectly good words into the ranks of the part-time employed and introducing new on6s to work with them. His influence cannot be denied. The educated and the unschooled quote him, at first as mimics, later unconsciously. His ** Renovate" for divorce, and "blessed event" for baby, for instance, are commonly used today throughout the country, so commonly, in- deed, that Professor Winchell, word inventor, is hard put to it these days to make the public remember that they are his originations. Why is it that Americans are so prompt to adopt new words and expressions? Is it because the words already provided for us are unsatisfactory? The true explanation probably lies in the wit which accompanies the Winchellizing and the American weakness for tak- ing to its bosom almost everything new and sparkling, much as children grab for a shiny bauble. In adopting for everyday parlance the Winchell evpressions we are not abandoning the words for which they substitute, but merely supplementing them, adding cheerful and gay garments to our correct and dignified verbal ward- robe, as it were. — Portland (Me.) Press-Herald. JAMES DIXON A SUICIDE James M. Dixon, former president of the Tobacco Products Corporation and a former director of the America Tobacco Company, committed suicide on Feb- ruary 2d by shooting himself. He was found dead in l>is office at Springfield, Mo. He had been despondent over the loss of his fortune. He was fifty-eight. In his early years Mr. Dixon was associated with James B. Duke, founder of the American Tobacco Com- pany. In 1915 he was elected vice-president of the To- ))acco Products Corporation and in 1919 he became president when George J. Whelan resigned that office. When the brands of the Tobacco Products Corporation were leased to the American Tobacco Company in 1923, Mr. Dixon became a director of the latter company, re- signing a few months later. Several years ago he re- turned to his home in Springfield and at the time of his death he represented the Hill Monument Company of Des Moines. During his early career Mr. Dixon was a buyer of tobacco leaf in Turkey and Greece and was at one time sales manager for Stephano Brothers of Philadelphia. He had been the possessor of a large fortune and dur- ing the height of his business career he owned a $100,000 home in White Plains, N. Y. It was reported from Springfield that he had lost his entire fortune. PHIL M. PHUI.OFAX,* D. B. I. (the retailer's friend) says: ©B. C, Inc., 1932 *'Green glasses don't make ^reen grasses I ALWAYS Ret a chuckle out of the gag about the Scotchman who put green goggles on his horse to fool him into eating wooden shavings. . . . The horse died. Nevertheless, substitution or imitation is no joke — whether you practice it on a horse or a customer. It doesn't help the cus- tomer any; and sooner or later there comes a kick-back that's sure to leave a dent in the per- petrator's respectability. J. J. S., cigar retailer in Los Angeles, Cal., handles the subject without gloves : "The first thing a cigar re- tailer should think about is to be honest with his customers. If a customer asks me for a certain brand of cigar, I never try to sell him something else ... I give him no reason to suspect that I'm trying to 'put over' an inferior cigar at a bigger profit. If I haven't the brand he calls for, I suggest a choice of several well- known brands in about the same class. I also watch out for the imitations of popular brands. In 99 fact, I'm surprised that there should be salesmen and manufac- turers so irresponsible or daring as to actually imitate the boxes or bands of well-known cigars^ and offering them to dealers on a long-profit bait — because the quality, naturally, is very much lower. I've known cases where the dealer was frankly told that the imitation offered him a chance to hoodwink his custom- ers and 'clean up.' "These are times when cigar smoking must be cultivated and customers courted. It can't be done with cigars that look like the real thing but taste like wrapping paper." Right you are, J. J. S. There's no more sense today in slipping a customer a phony smoke than there is in slipping old Dobbin a mess of shavings instead of hay. Cigar materials are lower; cigar qualities are higher than ever before. The situation is ideal for building business by in- creasing the volume of consump- tion. D.B.I. * Associated with BAYUK CIGARS, INC.. Philadelphia Makers of fine cigars since 1897 BAYUK BRANDS BUILD BUSINESS BAYUK PHILADELPHIA CIGAR (BAYUK "PHILLIES") BAYUK HAVANA RIBBON BAYUK MAPACUBA PRINCE HAMLET CHARLES THOMSON 12 52nd year THE TOBACCO WORLD February 15, 1932 D. E. KLEIN HONORED ON ANNIVERSARY N JANUARY 30 members of the D. Emil Klein Company, and the subscribers to the original stock in the D. Emil Klein Company, gathered in a private dining room of the Metropolis Club, in New York City, to celebrate the tenth anniver- sary of the company. The party was strictly a stag affair, and forty-five persons were present. The executive group of the company presented Mr. Klein with a handsome token of their esteem and affec- tion for him in the form of a ** cheerio" bar on wheels. James Torrens, treasurer of the D. Emil Klein Com- pany, who has been associated with Mr. Klein for twenty-six years, made the speech of presentation on l^ehalf of his associates. It was to be regretted that **Jim" found it necessary to condense his remarks to a few brief words. But short as his speech was, it was pithy and reflected the esteem and affection of the donors. Though the affair was strictly stag, the girls in the Klein organization also w^ere present by proxy. Her- bert Weil, secretary, on behalf of the absent femininity, read a poem from the girls which accompanied the pres- entation of a beautiful smoking stand to Mr. Klein. The president replied with a graceful speech of appreciation in which he expressed gratitude for the loyalty and co-operation of his staff and stated that the occasion would ever be recalled by him as the most memorable evening of his life. Towards the end of the dinner a bellboy shouting ^ ' Extra ! ' * brought in copies of a humorous magazine, **The Deklein," replete with comic "personals" and burlesque material. This publication was specially ed- ited for the function. Music was supplied by an orchestra under the di- rection of Vincent Sorey, who conducted The Haddon Hall radio broadcasts. At the conclusion of the banquet, Professor Kal- dah, a famed mind reader and entertainer, proved that the mind is quicker than the eye. His feats of mental telepathy and mathematical deduction gripped the audience and he was warmly applauded for his many remarkable demonstrations. JANUARY TOBACCO SALES Kentucky w^arehouses sold 205,689,591 pounds of tobacco for $15,897,475.83 during January, as compared to 189,652,608 pounds sold for $25,539,999 during Jan- uary of 1931. The Commissioner of Agriculture's report on Thursday showed 170,701,400 pounds of hurley were sold for $14,616,321.11, an average of $8.56 per 100 pounds, and 35,988,191 pounds of dark tobacco for $1,281,154.72, an average of $3.66 per 100 pounds. The average for hurleys in the same month last year was $15.01 and for dark tobacco $7.90. The Paris market had the highest average, with 10.96 per 100 pounds for hurley. Lexington w^as sec- ond, with $10.69, and Cynthiana third, with $9.10. Hopkinsville had the highest dark market average with $5.73 per 100 pounds. OLLENDORF RETURNS FROM EUROPE Jonas J. Ollendorf, well known cigar salesman and former president of the Tobacco Salesmen's Associa- tion, of New York City, has returned from a trip to Europe, where he has spent a month, accompanied by Mrs. Ollendorf, ''seeing the sights." SCHULTE AGAIN GIVES COUPONS HE SCHULTE Cigar Stores Company on Jan- uary 27tli again began issuing profit-sharing coupons to all customers whose purchases amounted to eight cents or more in their stores. The giving of coupons, formerly looked upon as a huge inducement to attract customers to both the United and the Schulte Cigar Store Chains, was discontinued by both chains a few years ago, but the time for exchang- ing the coupons for merchandise was continued for an- other year. At that time the United Stores were pre- senting their customers with United Profit-Sharing cou- pons and the Schulte Stores were distributing Mutual Profit-Sharing coupons. The Schulte stores, upon resuming the distribution of profit-sharing coupons, are using the United Profit- Sharing Company's coupons. The United Cigar Stores Company have not as yet begun the distribution of profit-sharing coupons, but the experiment by the Schulte stores is being closely watched, and should the United stores suffer a loss in sales through not again adopting the coupon system, they will no doubt adopt it at once. WOULD CONTINUE USE OF "HAVANA" Although three York County cigar manufacturers admit that the use of the word *' Havana" in the label- ing of their products was ' 'misleading" inasmuch as they use no Cuban-grown tobacco in those products, they have petitioned the Federal Trade Commission at Washington for permission to continue the use of the word *' Havana" in connection with their established brands in a modified w^ay. The three companies united in a petition appealing to the Commission to allow them to continue the use of the word on their labels, with the provision that the labels also bear a printed notation to the effect that the cigars contain no Havana tobacco. DUNHILL PIPES NOW $7.50 Effective February 1st, the retail price of Dunhill pipes is $7.50 instead of $10 as formerly. The Dunhill Company believes that this reduction in price will bring their pipes within the reach of a greater number of pipe smokers and sales will show a corresponding increase. It is understood that the depreciation of the Eng- lish pound was instrumental in bringing about the re- duction. The Dunhill pipes are now being billed at $4.60, less 2 per cent, ten days, f. o. b. New York. On stock purchased during January, 1931, the dealer will receive a credit memorandum of $1 per pipe. 6016 CIGAR STORES IN PENNSYLVANIA According to the 1930 Census of Distribution, as announced by the Bureau of the Census, Washington, D. C, Pennsylvania has 6016 cigar stores and stands. There are 709 cigar stores in the State with soda fountains which do an aggregate business of $6,179,245 ; 4013 cigar stores without fountains with a total busi- ness of $28,697,714, and 1294 cigar stands with a total business of $6,094,249. BENSON AND HEDGES REPORT Benson and Hedges, manufacturers of tobacco products, report net profit for the year ended Decem- ber 31, 1931, of $2032 after interest, depreciation and Federal taxes, equivalent to eleven cents a share on 18,000 no-par shares of preferred stock. This com- pares with $16,031, or eighty-nine cents a share on preferred in the previous year. February 15, 1932 Say You Saw It in The Tobacco World 52nd year 13 Make Your Good Cigars Better By Packing Them In Wooden Boxes When thirst attacks the athlete in his gruelling endeavors, the fever-racked patient in the home or hospital, or the wounded soldier on the battlefield, the cry is for ''water" — Nature's unimitated and assuaging potion throughout the ages. And the newly made cigar, temporarily ill from the casing and blending proc- esses, cries for relief. Again Nature answers the call with a natural product— the wooden cigar box. Its porous character not only enables the cigar to breathe and rid itself of excessive moisture and any impurities, but at the same time to ripen and give the smoker the utmost in cigar satisfaction. The new AUTOKRAFT wooden cigar box meets all the requirements of the cigar manufacturer for a dependable natural wood container for his brands. Equally important is the fact that although only thoroughly tested materials which must meet definite quality standards, are used, the new AUTOKRAFT package satisfies the demand for a better cigar box at a lower cost. Phiia., Pa AUTOKRAFT Hanover, Pa. Cincinnati, Ohio LIMA Kansas City, Mo. A Natioi\ CORPORATION Ohio Service York, Pa. Chicago, 111, Detroit, Mich. Wheeling, W. Va. EXPORTS OF CIGARETTES LEAD XTEINT of the popuhirity of American cigar- ettes ahroad is indicated by Department of Commerce figures just made public. This liking for American cigarettes in other countries as well as in the United States is largely attributable ac- cording to authorities in the industry to modern methods of manufacture such as the toasting process including the use of ultra violet rays. Exports of cigarettes for 1931, according to preliminary reports, represented three-fourths of the total foreign sales of American manufactured tobacco products. The De- partment of Commerce figures show that cigarette ex- ports from the United States during 1931 accounted for $6,753,908 of the total foreign sales of $8,711,113 for all manufactured tobacco products in the period. Chewing tobacco exports amounted to $1,113,568 while smoking tobacco exports totaled $774,910. NICHOLAS COMPANY TO DISTRIBUTE "DIMITRINO*' Following the retirement from business of F. Dohrn, New York City, formerly United States agent tor the **Dimitrino" cigarette, it was announced that the agency for this finest of imported Egyptian cigar- ettes had been turned over to the Nicholas Company, Limited, 98 Wall Street, New York City. ^ Mr. Dohrn had been associated wath the distribu- tion of the "Dimitrino" cigarette in this country for twenty-eight years, and in that time had built up a substantial distribution and sale of the brand, in spite of the high cost of the brand. The Nicholas Company is in a particularly ad- vantageous position to maintain this distribution and sale of the ''Dimitrino" brand. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH, Wheeling, W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Pretident JULIUS LICHTENSTEIN, New York. N. Y Vice-Preiident WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL. New York, N. Y Vice-President H. H. SHELTON, Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG. Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON" RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City SecreUry-Treasurcr NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS fACK A. MARTIN, Newark, N. T President CHARLES D. COLEMAN, Chicago, 111 Vice- President ABRAHAM SILETT, 1153 Herkimer St., Brooklyn, N. Y Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE /^SA LEMLEIN FTt.id.nX SAMUEL WASSERMAN Vice-Pre.ident 14 52nd year THE TOBACCO WORLD February 15, 1932 February 15, 1932 THE TOBACCO WORLD 52nd year 15 TOBACCO PRODUCTS PLAN IN EFFECT HE banking committee for the Tobacco Prod- ucts Corporation yesterday notified holders of certificates of deposit for Class A stock and common stock that the plan of reorganization had been declared operative. The notification was signed by Percy H. Johnston, Charles H. McCain and Charles H. Sabin, chairman of the committee. The notice was as follows: **The plan of reorganization of Tobacco Products Corporation has been declared operative. Notice will be given later as to the date when debentures ot io- bacco Products Corporation of New Jersey and the stock of Tobacco Products Corporation of Delaware will be available for exchange under the plan, against surrender of certificates of deposit. Until such notice depositors should not surrender their certificates ot deposit for exchange." . . . xi, ^ The plan of reorganization provides tor the tor- mation of two companies, Tobacco Products Corpora- tion of New Jersey and Tobacco Products Corporation of Delaware, to take the place of Tobacco Products Corporation of Virginia. The New Jersey company is to acquire the lease agreement with the American Tobacco Company whereby the latter has the use of labels and brands, while the Delaware company will take over the remaining assets, consisting principally of controlling interest in the United Cigar Stores of A TTIPT*lCa The assets of the Delaware company will consist of 3,964,3101/2 shares of United Cigar Stores Company common stock and the entire capital stock of the To- bacco Products Company of New Jersey, against which will be issued 3,296,652^2 shares of Delaware company stock. The New Jersey company, in addition to the American Tobacco lease agreement, will also hold the entire capital stock of some subsidiary companies own- ing a reversionary interest in tobacco and cigarette brands. , , n Under the terms of the plan Class A stockholders in the old company receive for each share $10 of de- bentures of the New Jersey company; common stock- holders receive for each share $4 of debentures of the New Jersey company and one share of the Delaware company. The New' Jersey company is to issue $35,- 591,235 *of 61/2 per cent, collateral trust debentures, maturing November 1, 2022. DRUG CHAIN EXECUTIVES SAIL One hundred members of the Associated Chain Drug Stores sailed on February 4th, from New York, on the "Monarch of Bermuda" for a stay at the Hotel Bermudiana. During their convention in the islands a golf tournament will be played on the Riddell's Bay links, near Hamilton, Bermuda. Among passengers on the cruise were Messrs. C. R. Walgreen, H. J. Moffat, F. J. Griffiths, A. C. Allen, D. C. Killer, of Cincinnati; Truman Currens of Nor- wich, Conn. ; R. D. Keim of New York, and E. E. Dick- inson, of Essex, Conn. CONSOLIDATED CIGAR EARNINGS The Consolidated Cigar Corporation and subsid- iaries preliminary report for 1931 gives net profit of $2,122,000, after depreciation. Federal taxes, etc., equivalent after allowing for dividend requirements on subsidiary preferred stock, the 6V2 prior preferred and the 7 per cent, preferred stocks, to $5.04 a share on 250,000 no par shares of common stock. This compares with $2,372,535, or $5.86 a common share in 1930. News from Congress (Continued from Page 10) partment declared in announcing the protest against the recent action of the French government. Further indications of the spread of efforts to de- velop trade in certain areas by purchasing the goods of particular countries are seen in the reported agree- ment between England and Argentina, calling for the preferential treatment by each of the other's com- modities. Adoption of this agreement would deprive the United States of its best South American market for a number of commodities and will likely be the subject of international diplomatic exchanges if put into effect. New Postal Guide Aid to Direct Mail Advertisers Tobacco dealers who do direct-to-consumer ad- vertising will be materially aided by the proposed in- clusion in the annual Postal Guide, published by the Post Ofl&ce Department, of a list giving the number of letter boxes on rural routes of all post offices, now under consideration by officials of the department. The printing of such a list, it is pointed out, would enable business houses which do direct advertising to reach the great rural population efficiently. Under the plan now being considered, it would be necessary for such concerns merely to prepare as many pieces of mail as there are boxes on a route, paying postage on each piece separately, as at present, but not being required to show a name and address thereon, and send them to the post office servicing the route. At present the Postal Guide gives the number of rural routes at all post offices but does not show the number of patrons on such routes. Experiments with the new plan in Wisconsin are said to have been very successful. No extra cost was incurred by the post offices in handling the material, while industrial con- cerns which took advantage of the service reported excellent results. If the plan is adopted, as now appears likely, this information will be compiled for the next Postal Guide, to be issued in July. UNBRANDED TOBACCO BANNED IN CUBA Acting on complaints of the larger cigar manufac- turers in Havana, President Machado has issued a de- cree prohibiting the sale of cigars, cigarettes and smok- ing tobaccos which do not carry registered trade-marks. The decree becomes effective on February 19th and is expected to aid the larger manufacturers who are ex- periencing plenty of difficulties due to increased duties in foreign countries with a corresponding decrease in sales of Cuban tobacco products, and also a serious strike among the cigarmakers. The Cuban Government is also beginning to feel the effects of the decreased sales as the tobacco indus- try is one of the heaviest contributors of revenue to the government. The Trebow Cigar Company, manufacturer of ** Mexican Commerce'* and other brands, has placed a new five-cent cigar on the market which is designed to give the smoker the utmost value in a long filler cigar at five cents. The new brand carries the title **New Pleasure'* and is a queen size. PHIL M. PHULOFAX STRESSES THE PERSONAL TOUCH FOR THE RETAILER OW about using a little 'personal touch' in your business"? This is the theme that runs through a message received by this magazine from Phil M. Phulo- fax, D. B. I., the widely known counsellor to cigar retailers on sales practices. Mr. Phulofax, whose associ- ation with Bayuk Cigars, Inc., has given him the back- ground of knowledge that enables him to speak au- thoritatively and whose views are expressed regularly in the advertising columns of this publication, has the following to say in his most recent communication: ''I'm addressing myself to all cigar retailers when I ask this question about the 'personal touch.' For it's every bit as applicable to the fellow who has a lit- tle hole in the wall as it is to the big dealer whose store is one of these 'Tobacco Shoppe' places — much plate glass and fancy fixin's. "Of course you're all in business first of all to sell cigars. But there are more ways than one of doing it. The fellow who grumpily shoves out a box of the brand you 've asked for and takes your hard-earned coin with a grunt is one sort of a store attendant. The fellow who takes your order with a smile and an air that he's pleased and happy to get for you just what you want is another sort and he is a salesman. He's the one that's likely to get your repeat business. He's given you something beside a cigar. A customer goes into his store expecting recognition and a cheery smile and is not disappointed when he comes out. It's that some- thing I mean by the ' personal touch ' — a bit of his own pleasing personality that puts you in a good humor and makes you disposed, in return, to please him by giving him your regular business. "My business takes me into a lot of stores all over the country. In my home town, and my little neighbor- hood community, I buy a good many more cigars than the average man, for it's part of my business. And I like to try out the sales ideas of all the retailers in my own community. "But I don't mind saying there are some stores I go into with a bit of a groan just because they are convenient. But usually I buy my cigars where I begin to wear a pleasant smile even before I get inside the door. "The nearest store to where I live is kept by — well, we'll call him 'Grouch.' He sells cigars — and not another blessed thing. Not a bit of neighborliness, nor of the pleased-to-be of service attitude. Nothing but cigars — with frequent grousing about how bad business is thrown in on the side. "Then there's Bill Smiles, who has a store three blocks from the house. Even when I'm in a hurry, those three blocks make a pleasant brisk walk. For Bill is always cheery, interested in what I have to say about the day's news, and I'm just as interested in him, in how his kid's getting along in school, and in how his business is as if I had a part interest in it. As, to tell the truth, I have — meaning an interest in how it, and Bill, are doing. Bill, you see, sells more than (•igars. He sells a bit of his own nice, friendly per- sonality. "Bill doesn't make the mistake, either, of trying to oversell his cigars or himself, but I don't mind say- ing I sometimes buy a bit more than I had intended to, just because I know I please Bill when I do it. "I know it 's not a regulation item on an inventory, but believe me, that item of 'Personal Touch' or 'Per- sonality' or whatever other name you want to give it, is one of the most important items you cigar retailers should consider when you take account of your stock HARMONY IN SIGHT AT LORILLARD MEETING AST WEEK it was announced that harmony in the annual shareholders' meeting of the P. Lorillard Company at Jersey City, on March 8th, seemed assured as the result of an ami- cable adjustment of differences between the manage- ment and a minority group of stockholders. The minority group is expected to get represen- tation on the board through election of two new direc- tors. A proposed change in the company's bonus policy and the management's plan for sale of stock to em- ployees, which aroused opposition of the minority group, will not be brought before the annual meeting but may be settled later in a special stockholders ' meet- ing. The management dropped its fight, for the time being at least, for adoption of a revised bonus plan and sale of stock to employees at $10 a share last Decem- ber after a court ruling restraining a vote on the pro- posals at the 1931 stockholders' meeting. The 1931 meeting was postponed from time to time awaiting the court decision. Whether the management will resume its fight for adoption of its proposals as they stood last year or in revised form or will drop the matter entirely has not been decided, as far as could be learned. Scott & Stringfellow, of Richmond, Va., attorneys representing the minority group in a letter to share- holders, announced they were "pleased to report that our differences with the management have been amica- bly adjusted." "At the 1932 meeting," the letter continues, "The management will propose Jacqueline P. Tavlor, of Richmond, and William Steele Gray, vice-president of the Central Hanover Bank and Trust Company, of New York, as directors of the company along with the other directors." Election of directors is the only matter scheduled to come before the annual meeting. "WHY WORRY?" "Why Worry?" is the title of a small card distrib- uted by the Mazer-Cressman Cigar Company of De- troit, manufacturers of ' ' Manuel ' ' cigars. This little card proves to the satisfaction of nearly everyone that there is no sense or excuse for worrying at all. It reads : "I wonder why folks worry. There are only iivo reasons for worry ! "Either you are successful or you are not success- ful. If you are successful there is nothing to worry about ; if you are not successful there are only ttvo things to worry about. Your health is either good or you're sick. If your health is good there is nothing to worry about ; if you are sick there are only iivo things to worry about. You are either going to get well or you are going to die ; if you are going to get well there *is noth- ing to worry about; if you are going to die there are only ttvo things to worry about. You are either going to heaven or you are not going to heaven ; and if you are going to heaven there is nothing to worry about; if you are going to the other place you'll be so damn busy shaking hands with old friends you won't have time to worry — so why WORRY!" A supply of these cards for distribution among smokers will be sent to dealers on request by the manu- facturer. in trade. Check up on it frequently because you can take it from me, it pays cash dividends on every sale you make." 16 52nd year THE TOBACCO WORLD February 15, 1932 February 15, 1932 Say You Saw It in The Tobacco World 52nd year 17 '^ SOLACE OF TOBACCO OLDERS of tobacco stocks are finding in the 1931 reports of the principal manufacturers a solace akin to that which the weed itself is be- lieved to exercise upon its users. The pros- perity of the industry is one of the few bright spots in the financial panorama of 1931. It may be that trou- bled minds here and there turned to tobacco in its various forms more extensively during the depression period. It is more strongly indicated, however, that the undaunted and undiminished program of advertis- ing and merchandising carried out by the leading com- panies was the chief force preventing a slump in the industry. The 1931 report of P. Lorillard Company, one of the ''Big Four" cigarette manufacturers, em- phasizes that the tobacco men not only escaped the depression but actually achieved greater prosperity last year. The company's net income of $4,846,373, or $2.12 a common share \vas $1,200,000 larger than the $3,614,363, or $1.47 a share, in 1930, and was nearly double common stock dividend requirements. Surplus was increased more tlian $3,000,000 to a total of $19,- 585,157, and on December 31 the company had cash of $13,812,652, exclusive of an amount sufficient to retire the entire outstanding 5i/^ per cent, bonds. These bonds, totaling $13,758,000, w^ere called on January 1 this year, reducing funded debt to $19,921,150. The report of the United States Tobacco Company brought another company in this industry into the honorary line-up of concerns reporting higher earn- ings for 1931. Wall Street believes the tobacco com- panies have been lucky in this depression because they have been developing a much wider market for their product in the form of new woman smokers. This is a plausil)le argument but it does not hold in the case of the American Snuff Company, which recently re- ported higher earnings along with the tobacco com- panies. There has not been a sudden popularization of snuff using among women, or if there has it has been kept secret. TOBACCO ESCAPES INCREASED DUTY When the Chancellor of the Exchequer, Neville Chamberlain, in the London House of Commons on February 4th announced new tariff schedules on im- ports, which entailed a 10 per cent, increase in duty, experts on this side of the Atlantic were wary of esti- mating the effect on this country. However, the total of British imports from the United States in 1930 was w^orth in round numbers, about $765,000,000, and, of that, about $195,000,000 was then dutiable under the tobacco tax, the McKenna duties and other imposts. These imports sustain no further tax under the present measures, and in addi- tion to these there are about $185,000,000 worth of im- ports such as meat, wheat and cotton which are still exempted. "TARGET" PAPERS A HIT Brown & Williamson Tobacco Corporation, Louis- ville, Kentucky, are rapidly obtaining 100 per cent, dis- tribution on their five-cent books of genuine ** Target'* gummed cigarette papers. Dealers are commenting regarding the attractive display cartons, and a lot of stores are putting them on their counters and report a **8ure fire seller." CITY HALL STAND OFF FREE LIST UITE a jolt was handed Morris Wattenmaker, who operates the cigar and newsstand on the first floor of the City Hall Annex, last week, when Director Caven, of the Public Works De- partment, announced he was opposed to "giving away" space in public buildings, and said he would ask for bids for the space occupied by the stand on February 16th. Wattenmaker, a protege of the Twenty-fourth Ward committeeman and Clerk of Quarter Sessions Court, has used the space rent free since City Hall Annex has been in use. He began business in the last years of the Kendrick administration and continued throughout Mayor Mackey's term. **I have been advised of the action of Director Caven and when the time comes I shall submit a bid,'' said Wattenmaker. ^ * There is not much profit in the place because of the number of stores in the neighbor- hood, but I shall make a bid and try to retain it." When asked whether he had used political influ- ence to get the stand rent free, Mr. Wattenmaker smiled and replied: ''Well, you can use your own judgment." Charles P. McDermott, chief clerk of the Bureau of City Property, which has the care of public build- ings, explained that previous administrations ques- tioned the right to collect rent on property * ' dedicated to the use of the public. ' ' 1931 TOBACCO ADVERTISING GAINS Expenditures by the tobacco industry for adver- tising in national magazines and national farm maga- zines amounted to $555,832 in January, a gain of 3.4 per cent, over the total of $537,429 for January, 1931. National magazines showed a slight recession of 0.6 per cent, from $515,729 to $512,682, but a striking gain of 98.8 per cent, in the farm magazine classification, from $21,700 to $43,150, served successfully to wipe out this loss, according to the Business Survey Department of Dorrance, Sullivan & Company, New York advertis- ing agency. $393,039, or 76.7 per cent, of the total for national magazines, went for cigarettes; $115,179, or 22.5 per cent, went for manufactured tobacco and smokers' sup- plies ; and $4464, or 0.8 per cent., went for cigars. If it had not been for a gain of 158.7 per cent, in radio broadcast advertising by the tobacco industry over national networks (an increase of $3,295,003 from $2,076,114 to $5,371,117) the composite total for na- tional magazines, farm magazines and radio would have shown a slight recession for the year 1931. As it was, however, the total was $12,147,211, an increase of 35.3 per cent, over the full year of 1930. During De- cember the expenditure for radio was $611,310, a gain of 181.4 per cent, over the figure of $217,280 for the same month a year ago. **SIR WALTER RALEIGH" POPULAR **Sir Walter Raleigh" smoking tobacco is enjoying a great demand in colleges. Apparently the rising gen- eration likes Sir Walter's favorite blend. It looks as if economics and political history are made easier when digested under the soothing aroma of **Sir Walter Raleigh." SIR HUGO OWEN EXPECTED Sir Hugo Cunliffe Owen, of London, is expected to pay his annual visit to this country during February. WARS INCREASE SMOKING HABIT VERY great war has been followed by an enormous increase in the smoking habit, ac- cording to a famous historian of smoking, whose ''History of Smoking" has just been published in English. The Thirty Years' war spread smoking all over Europe, with the result that smoking was soon uni- versally adopted throughout the world. The Napo- leonic campaigns brought the cigar into popular prom- inence. The Crimean War in the 50 's helped to further the popularity of the cigarette at that time just as the World War stimulated the demand for tobacco everywhere. Since the last war the most important factor in de- veloping tobacco popularity has been the revolution in the manufacture of tobacco products to make them sanitary. To meet the new standard of absolute cleanliness, one popular American five-cent cigar is now the only cigar in the world finished under glass. The important part that smoking played in the last war is corroborated by one of General Pershing's cables to Washington — "Tobacco is as indispensable as the daily ration. We must have thousands of tons of it without delay. ' ' IMPERIAL TOBACCO EARNINGS The Imperial Tobacco Company of Great Britain and Ireland, Ltd., reports for the year ended October 31, 1931, net income, after all charges, of £9,376,063, against £9,677,045 in the preceding year. Last week directors of the Imperial Tobacco Com- pany declared a final dividend of 8 per cent, on the ordinary registered shares for 1931, free of tax, and an extra dividend of Is 6d, also a final dividend for the vear 1931 free of tax. Both distributions are payable in 1932. As of October 31, 1931, the Imperial shows total assets of £78,162,109, comparing with £77,864,010 on October 31, 1930. Cash, government and other securi- ties amounted to £16,019,284, against £14,668,310, and profit and loss surplus was £7,516,015, as compared with £7,802,926 on October 31, 1930. CUBAN STRIKE STILL UNSETTLED According to reports, little progress has been made in the strike of 15,000 cigarmakers in Cuba toward a settlement of the differences between the manufac- turers and the strikers. The strike was the outcome of an effort on the part of the manufacturers to induce the workers to accept a reduction in wages due to economic conditions in the industry at this time. The manufacturers are marking time and claim they have sufficient finished cigars on hand to meet six months' requirements under present conditions. HARVEY TO REPRESENT ESCALANTE Ernest W. Harvey, well-known cigar salesman, has joined the sales force of Jose Escalante and Company and \vill represent that firm in New York City on their *'Corina" cigar and other brands. Mr. Harvey has had a wide experience in the cigar industry and ''Corina" sales may well be expected to show an increase in his territory. S/JWJlV»A"l«^'^^l^l^tiS^l^lX|t]lXBIJl^ Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. r»irr»ir(rsvir?»it«tir)«vir«^r?svir«vir?svir«vit)«viti^ FOR SALE" FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No, 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAFORATING CIGAR FLAVORS Make tobacco melCow and smooth in character and Impart a most palatable flavor FUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands EKTUN. AKOMATIZEK. BOX FLAVORS. PASTE SWEETENERS FRIES 6l BRO., 92 Reade Street. New York SOUND SALES EFFORTS ESSENTIAL TODAY NTELLIGENT, energetic sales efforts are even more essential when orders are hard to get than when they may be had for the taking, according to Vincent Riggio, vice-president of The American Tobacco Company, who has just com- pleted a tour of the country with F. V. Riggio, general sales manager, in the interests of ** Lucky Strike'* cigarettes and "Cremo" cigars. In accordance with this principle of continuing its sales activities without interruption. The American Tobacco Company has maintained both its full force of salesmen and its ad- vertising efforts. On his tour of the country, Mr. Riggio held meetings of the company's sales organiza- tions in Seattle, Los Angeles, Kansas City, Indian- apolis, Atlanta and New York City. As in the past, the company is striving for the best possible co-ordination of its sales activities. The results of sustained news- paper advertising and sound, aggressive selling by salesmen trained in the policies of their company show up as clearly today, Mr. Riggio observes, as at any time since the World War. ALBERT FREEMAN ILL The many friends of Albert Freeman, of S. J, Freeman & Sons, are much concerned at the news that he is seriously ill from a severe attack of pneumonia, and are wishing him a speedy recovery. MARCH 1, 1932 18 52nd year Say You Saw It in The Tobacco World February 15, 1932 Tobacco Merchants' Association Registration Bureau, 341 Madison Ave. NEW YORK CITY Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A-An allowance of %2 will be made to members of the Tobacco Mar- chanta' Aaaociation on each registration. Note B— If * report on a search of a title necessitates the reporting of more than ten (10) titles, but less than twenty one (21), an additional charge of One Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-op- (31), an additional charge of Two OoUM ($2.00) will be made and so an auditional charge of One Dollar (91-(w> will oe made for every ten (10) additional titles necessarily reported. REGISTRATIONS SEM-I-CUT:— 45,981. For smoking tobacco. January 26, 1932. H. Sutliff Pipe Shop, San Francisco, Calif. TRANSFERS VESTA:— 126,126 (U. S. Patent Office). For cigars, cheroots, sto- gies, little cigars and all tobacco cigarettes. Registered July 29, 1919, by Walter Arnheim, Pittsburgh, Pa. Through mesne trans- fers acquired by S. Frieder & Sons Co., Cincinnati, Ohio, and re- transferred to Louis K. Liggett Co., New York, N. Y., December 4, 1931. NUVANA:— 26,433 (Tobacco Leaf), on November 14, 1903, and 27,870 (U. S. T. J.), on November 17, 1903. For cigars, cigarettes and tobacco. Registered by American Litho. Co., New York, N. Y. Through mesne transfers acquired by D. Emil Klein Co., New York, N. Y., and re-transferred to Moss & Lowenhaupt Cigar Co., St. Louis, Mo., January 29, 1932. ST. REGIS:— 6,645 (Trade-Mark Record). Registered February 21, 1890, for cigars, cigarettes and tobacco, by Thurber, Whyland Co., New York, N. Y., and in Connorton's Tobacco Brand Directory in 1903, by Jacob Stahl, Jr., & Co., for smoking tobacco, cigarettes, cheroots and cigarros; also 27,363 (Trade-Mark Record), registered October 17, 1902, for cigars, cigarettes and tobacco, by Jacob Stahl, Jr., & Co., New York, N. Y. Through mesne transfers acquired by Martinez Havana Co., New York, N. Y., and re-transferred to Continental Cigar Corp., Scranton, Pa., February 1, 1932. HAINES OUT FOR RE-ELECTION ONGRESSMAN Harry L. Haines, of Red Lion, Pa., and head of H. L. Haines & Company, cigar manufacturers, of the same city, has an- nounced his intentions of running for re-elec- tion from his district this year. After some weeks of indecision. Congressman Haines decided to circulate petitions for the Demo- cratic renomination. '*Li view of the many requests that I be a candi^ date," he said, **I have decided to do so. I feel I have started some work in Congress that I want to finish." Congressman Haines has now before Congress at Washington, a bill to permit the packing of cigars in boxes of sixty. At the present time the law does not permit packages holding any number of cigars between fifty and one hundred, and many manufacturers in the York County district believe it would be to their ad- vantage if they were permitted to pack cigars in pack- ages containing sixty cigars. Haines has been undecided whether he could con- tinue to leave liis business interests at home to others. As a Congressman he believes he should stay in Wash- ington during sessions of Congress. T. E. Brooks, president of the York County Cigar Manufacturers' Association, has made it known that under no circumstances will he enter the primary bat- tle and thus possibly handicap the candidacy of his fel- low townsman and friend. The Haines campaign was formally launched at a meeting in York, on Saturday, February 13th. CUBAN TOBACCO INDUSTRY DEPRESSED EPORT from Acting Commercial Attache Al- bert F. Nufer, Havana, states the demand for Cuban leaf tobacco showed an improvement during January as a result of increased pur- chases by American importers. On the other hand, cigar exports showed a seasonal decline, which has been accentuated this year by the drop in sterling exchange. Advance reports on the crop now under cultivation ap- pear to confirm the opinion that production will be con- siderably below last year, mainly due to decreased planting. In addition, the crop, in some regions where there is no irrigation, has been adversely affected by drought. Exports of leaf tobacco dropped from 5,805,934 pounds in December, 1930, to 2,435,394 pounds during December, 1931, while shipments of cigars decreased from 3,779,101 in December, 1930, to 3,339,228 in De- cember, 1931. On the other hand, exports of cigarettes in December, 1931, showed an increase, amounting to 7,774,641, as compared with 6,115,906 in the same month of 1930. The value of Cuban exports of tobacco and tobacco products in 1931 totaled $22,847,120, as com- pared with $33,540,575 in 1930. The heavy drop in both quantity and value of 1931 Cuban exports of these prod- ucts is mainly attributable to the decreased demand resulting from unsatisfactory economic conditions, and to the unfavorable exchange rates existing in a number of Cuba's markets. Habana bank clearings during the three weeks ended January 16th amounted to $18,127,609, as against $33,323,252 during the same period of 1931. The total collections reported by the Habana branches of the six leading banks for the month of December showed items received as $3,638,315, items paid as $2,940,615, and items returned unpaid as $625,013, as compared with total items received of $5,180,935, items paid of $4,537,- 532, and items returned unpaid (five banks only) of $715,147, during December, 1930. EXTRA FOR SCOTTEN DILLON Scotten Dillon Company directors have declared an extra dividend of twenty cents, and the regular quarterly dividend of thirty cents, on the shares of the company. Both dividends are payable February lotli to stockholders of record February 6th. In the two previous quarters extras of ten cents were paid. At the annual meeting of stockholders all ofl&cers and directors of the company were re-elected. UNITED TO CHANGE STOCK The New York City Stock Exchange has received notice from the United Cigar Stores Company of America of proposed change in authorized common stock from 6,000,000 shares of no par value into 6,000,- 000 shares par value $1 per share, each present share to be exchanged for one new share. UNION TOBACCO PROFIT UP The Union Tobacco Company shows net profit for 1931, after expenses, taxes and interest of $59,330, equivalent to $1.48 a share on 40,000 shares of 7 per cent, preferred stock, comparing with loss of $8716 in 1930. Surplus for the year, after profit and loss credits, was $61,195, while in 1930, on the same basis, the deficit was $126,409. y Make Your Good Cigars Better By | Packing Them In Wooden Boxes When thirst attacks the athlete in his gruelling endeavors, the fever racked patient in the home or hospital, or the wounded soldier on the battlefield, the cry is for "water" — Nature's unimitated and assuaging potion throughout the ages. And the newly made cigar, temporarily ill from the casing and blending proc- esses, cries for relief. Again Nature answers the call with a natural product— the wooden cigar box. Its porous character not only enables the cigar to breathe and rid itself of excessive moisture and any impurities, but at the same time to ripen and give the smoker the utmost in cigar satisfaction. The new AUTOKRAFT wooden cigar box meets all the requirements of the cigar manufacturer for a dependable natural wood container for his brands. Equally important is the fact that although only thoroughly tested materials which must meet definite quality standards, are used, the new AUTOKRAFT package satisfies the demand for a better cigar box at a lower cost. Z:;e^;Pa. AUTOKRAFT BOX CORPORATION JZ'^;^"- Cincinnati, Ohio L I M A OHIO Detroit, Mich. Kansas City, Mo. ^ Na 1 1 o r\ '\V\ (\ ;: 3 e i \ i c c Wheeling, W. Va. PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA., PA. y WOODEN BOXES St ncrease Kino cL ine ^S 3.::£ Cigars to smokers. The high praise for the wooden box on our part and on the part of our dealers is justified oy a very substantial increase in the sale of KIITG B_.J Jigurs since they have been packed in wooden boxes. Very uruly yours, WiiaTQLJR & MiNDELL, INC. Ralph R. Graham, Das 3y [CoXj^ f^' President • o^i!iMiiAi*iiy^iLi*ii^iiyjiiLati^*iiiii|ii^i|ii^^ Volume 52 THE TOBACCO WORLD Number 5 Established 1881 TOBACCO WORLD CORPORATION Pnblishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter. December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3. 1879. $2.00 a Year PHILADELPHIA, MARCH 1, 1932 Foreign $3.50 EDITORIAL COMMENT F WE were *' banking" the opinions of news- paper editors, magazine editors and cohimnists of the country we would fear more the bet of Jay House of the PiihUc Ledger than that of any other writer. His observations and predictions of human reactions run ahnost as true to form as a Lit- erary Digest poll. He remarked the other day, if we concentrated cor- rectly, that when the public started to jump the fence they began to crowd each other in their endeavors to get over. All of which is merely a lead to our own pet subject of the whys and wherefores of the decline in cigar smoking. When the non-porous cellulose covering for cigars first made its appearance, the cigar industry was doing fairly well. It has planted a definite burden on cigar costs which has gradually been worked out at the ex- pense of the cigar itself, and the public ^'jumped the fence" when the entire cigar manufacturing industry rushed in to imitate the latest fad in cigar packing. The cigar manufacturers seem to be divided into two classes. Those companies which have sustained satisfactory earnings through national advertising and unusual contortions in the manufacturing and purchas- ing departments, let it l)e known, for public consump- tion at least, that the greatest cigar values of all time are to be found under the cellulose covering. As a matter of fact the paid publicity for cigars has gen- erally featured the lucid wrapper as much as it has the cigar itself. The other class of cigar manufacturers are those who know and oppose the use of the transparent cover- ing but who must ''follow the leader" to maintain their markets. And yet we are confident that the real expert cigar manufacturer knows in his own heart that his product thus wrapped is inferior to the brand in its natural wrapper in a wooden box. These times have brought us many inquiries re- gardmg the purchase of * ' factory seconds. ' ' We have been somewhat amused in talking with executives of several companies to find that they are consumed almost entirely by employees. (We are not referring to com- panies that market their ''seconds" regularly under a brand name.) . The men with whom we talked have been in the cigar business for periods of from twenty to thirty years, and our amusment was due to the fact that they stated frankly that they preferred the "seconds" be- cause they tasted and smoked better due to the fact that they had not been covered with the cellulose wrapper ! And yet the cigar manufacturing industry as a whole refuses to recognize the fact that there is a valu- able percentage of smokers who share these same views. It is to be admitted that the larger corporations have found ways and means to reduce the cost of the transparent covering to a minimum, but certainly to no advantage to the smoking quality of their brands. In twenty years we have not seen so many miser- able wrappers on cigars, and not apparent to the eye when dazzled by the glittering cellulose. The cheaper grades of some clear Havana brands are being sold With wrappers that are but little thicker than cigarette paper, if that is a fair comparison for a degree of thin- ness, and unless these cigars are still soggy the break- age with the lucid covering is just about as great as it would be without it. If the public knew the facts they would run away from the transparent covering as fast as they ran to it. It is a state of mind created by advertising, and so ob- viously an added expense that neither increases sales nor improves cigar quality that we wonder that the public ever caught up with Ponzi. While it is true that some of the cigar companies have made exceptional showings in both sales and earn- ings, considering the times, the cigar withdrawal fig- ures leave no room for doubt that the industry as a whole is drifting out to sea. And by all known methods of analysis the larger companies must eventually be caught in the undertow unless the tide changes. The figures covering cigar withdrawals for months of January from 1920 to 1932, inclusive, are interesting. Cigar Withdrawals for Months of January. 1920 663,634,243 1927 466,078,254 1921 462,798,039 1928 413,531,675 1922 443,260,802 1929 427,715,807 1923 559,183,386 1930 418,900,080 1924 504,023,809 1931 362,939,318 1925 474,803,054 1932 342,923,509 1926 433,672,942 It is our conviction after ten months of investiga- tion that the cigar manufacturing industry knows less about the proper packaging of their product than any (Continued on page 15) 52nd year THE TOBACCO WORLD March 1, 1932 I t i ]\[arch 1, 1932 Say Tou Saw It in The Tobacco World 52nd year FRINGS BROTHERS DISTRIBUTE "LA PALINA" FFECTIVE February 15th, distribution of ''La Palina'' cigars was taken over by Frings Brothers Company, well-known West Philadel- phia distributor. Frings Brothers Company maintain a selling force of seventeen able men who wall cover Eastern Penn- sylvania as far north as Easton, Delaware south to Wilmington, and Southern New Jersey, except Atlantic City, on " La Palinas. " "La Palinas ' ' are distributed in Atlantic City bv Dusel, (ioodloe & Company. Harold Christian, former manager of the Congress Cigar Company jobbing branch here, becomes factory representative, and will continue to work in this terri- tory through Frings Brothers Company. Alexander Jacobson, Congress Cigar Company factory man, will also continue in that capacity with Frings Brothers Company. . "La Palinas'' made substantial gains here during the month of January, and prospects are bright for fur- ther advances under the direction of Frings Brothers Company. MARTIN HENRY DEAD S. Martin Henry, widely known in the cigar and cigar box industry, passed away in Jefferson Hospital on Friday, February 12, following an operation for gallstones. He was sixty years old. Services were held on Monday, P^ebruary 15, in the Oliver Bair Chapel, 1820 (liestnut Street, this city. In- terment was in North Cedar Hill Cemetery. At the time of his death ^Ir. Henry was in charge of production in the fancy and small cabinet department of the Henry H. Sheip Manufacturing Company. He had a long experience w^ith the cigar industry and at one time was associated with the old firm of Theobold & Oppenheim, and later with the General Cigar Company. For several years he represented the American Label Company. CONGRESS CIGAR COMPANY REPORT The Congress Cigar Company, Inc., reports net profit of $273,139 for the year 1931, after all charges except w^rite-down of tobacco inventories, etc., amount- ing to $974,628 charged to surplus, and compares with net income of $1,652,246 in the preceding year. look MORRIS ZIFFERBLATT IN HAVANA ORRIS ZIFFERBLATT, father of George Zif- ferblatt, of George Zifferblatt & Company, manufacturers of the ''Habanello*' cigar, sailed for Cuba last Wednesday, where he will over the leaf tobacco contracted for for the **Habanello" brand, and also become acquainted with the tobacco situation and the men connected with the industry in that country. He was accompanied by Mrs. Zifferblatt. Gus Lauber, of the Zifferblatt Company, is work- ing with Tinkham Brothers, Jamestown, N. Y., distrib- utors of the "Habanello'' brand, and showing splendid results in placements of the brand. Tinkham Brothers have recently taken over the jobbing branch of the Snyder Cigar Company at 14 Monroe Street, Buffalo, N. Y. David Safier, of Safier, Inc., Cleveland distribu- tors of the ''Habanello," was a visitor at the **Haba- nello'' factory last week. BAYUK SALES FORCE ACTIVE F. L. Brumsey, member of the sales force of Bayuk Cigars, Inc., has been assisting the Hoffman Cigar Company, Norfolk, Va., in promoting Bayuk 's ** Ha- vana Ribbon" in that territory with good results. J. H. Wagoner has been in Waco, Texas, working through the Hubby-Reese Company, and showing splen- did results in increased placements on Bayuk **It's Ripe Tobacco" cigars. The Pete Humphries Company, in Paris, Texas, has taken on the distribution of Bayuk cigars and will inaugurate an aggressive sales campaign on their brands. SCHULTE CLAIMS $400,000 FROM CITY A claim bv A. Schulte, Inc., cigar store chain, for $400,000 damages against the City of Philadelphia, was outlined on February 15th to a jury and Judge McDevitt in Common Pleas Court No. 1. The -corporation, through its attorneys, Bertram G. Frazier and Roy M. Livingstone, estimates that fig- ure as its loss because of the taking of an eighteen-foot strip from the east side of Fifteenth Street at South Penn Square, causing the loss of a store property and three adjoining properties which the Schulte Company leased for thirty years beginning May 29, 1919. // I play safe by sticking to LUCKIES OH, WHAT A GAL IS MARY I She's one of the genuine beauties that even the camera cannot flotter. Sorrow and professional bod luck followed her for years. Now she's a bride . . . the stu- dios clamor for her . . . the public loves her... and the Hollywood sun is shining. Her new RADIO PICTURE is "MEN OF chance". . . Here's to you, Mary Astor I We're glad you smoke LUCKIES and we're grateful for that statement you gave us without a cent of payment. **I can't afford to take chances with my voice. So I play safe by sticking to LUCKIES — they *re always kind to my throat. And I'm doubly grateful for your improved Cellophane u^apper which opens so easily with that clever little tab." ^^^^iGLAt^ "It's toasted" Your Throat Protection —against irritation — against cough And MoitturB'Proof Cellophane Keeps that "Toasted" Flavor Ever Fresh TUNE IN ON LUCKY STRIKE — 60 modem minuUs with the world's finest dance [orchestras and Walter Winchell, whose icossip of today becomes the news of tomorrow, every Tuesday, Thursday and Saturday ctcninf; over N. B. C. networks. 6 52nd year THE TOBACCO WORLD March 1, 1932 March 1, 1932 Say You Saw It in The Tobacco World 52nd year Trade Notes The ^^Royalisf cigar, manufactured by Grabosky Brothers, Inc., North Second Street, is showing a good demand in the territories where it has been placed, and prospects are good for an expansion in sales during the current year. Louis Halpern has opened a cigar store and manu- facturing business on South Fourth Street, adjoining the Bourse Building, where he is manufacturing the ''Lincoln" cigar. The cigar is an all-Havana filled brand and packed in attractive boite nature packages. ^'Philosopher" smoking tobacco, an old favorite among confiraied pipe smokers who know good to- baccos, is enjoying a fine demand throughout the country. John Wagner & Sons, Dock Street, distribu- tors, are exclusive agents for this brand in the United States. Ben Lumley, "Carl Upmann" and "Garcia & Vega" representative, is at the present time on a trip through Eastern Pennsylvania and New York State in the interest of his brands. The "Carl Upmann" and "Garcia & Vega" brands have been showing substantial increases in. sales here under the direction of John Wagner & Sons, distributors. Effective February 15tli, Yahn & McDonnell, 617 Chestnut Street, have taken over the distribution of the "El Toro" cigar in this territory. The "El Toro" was formerly distributed here through the Congress Cigar Company jobbing branch, and has been making good headway. A substantial increase in distribution may be expected under the direction of Yahn & McDon- nell with their able organization. James Heaney, American Cigar Company repre- sentative, was in town last week, attending the conven- tion of the National Association of Club Managers, held at the Hotel Warwick. Mr. Heaney was in charge of a wonderful exhibit of American Cigar Company brands at the hotel during the convention. "Antonio y Cleopatra" cigars have been showing a fine demand here under the direction of Yahn & McDonnell. The National Association of Club Managers held their annual convention last week at the Warwick Hotel, with a splendid attendance from all parts of the country. Business vital to the association was discussed dur- ing the day and ample, and excellent, entertainment was provided for the guests during the evenings. The convention ended on Saturday with a banquet served at the Penn Athletic Club. Among those in attendance were Joe Back, Frank Fallon, of "Partagas" and "Medalist" fame; Joe Wolfe, Fred Suss, of S. H. Furgatch, and Mr. Heaney, of the American Cigar Company. Next yearns meeting will be held in Chicago. AMERICAN CIGAR TO VOTE ON LEASE TO TOBACCO COMPANY OW, JONES & COMPANY, New York, on Thursday announced that the American To- bacco Company had reached an agreement with the committee representing the minority stock- holders of the American Cigar Company, which will result in transforming the latter into a holding com- pany and assure it an annual income after preferred dividends of about $11 a share on the common stock. American Cigar Company stockholders will vote on March 15th on a plan for transferring most of the company's business to the American Tobacco Com- pany. Certain of its assets will be sold to the Ameri- can Tobacco Company and other assets will be leased to the same company. It is proposed that the cigar company shall receive for its assets to be sold the assumption or cancellation of certain liabilities and the delivery to it of 70,500 share of common stock and 129,500 shares of common "B" stock of the American Tobacco Company, mak- ing a total of 200,000 shares of common and Class B stock. At present prices of $78.32 a share, the stock represents approximately the net book value of the assets to be sold, after deduction of liabilities to be assumed or cancelled. For the assets leased the cigar company will re- ceive $1,800,000 a year for 99 years beginning January 1, 1932. The assets to be retained by the cigar com- pany will have a book value of $6,330,000 subject to liabilities of only $159,000. These consist largely of investments, notes receivable and cash. About 95 per cent, of the common and preferred stock of the American Cigar Company are owned by the American Tobacco Company. Several months ago the American Tobacco Company offered minority stockholders of the cigar company $80 a share for their common stock and $100 a share for the preferred. Fol- lowing this, a committee representing the minority stockholders' interests was formed to make a detailed inquiry into the proposed deal. Mr. Segal, of A. Segal & Sons, was a visitor at John Wagner & Sons, Dock Street, distributors, last week. The Penlo Cigar Company, Philadelphia, has ap- pointed the Roden-Clements Company, advertising agency of this city, to direct its advertising account. Mr. Rendell, of the Condossis Tobacco Corpora- tion, was in town last week visiting the trade in com- pany with James Clark, "Condossis" representative for this territory. Friends of Willis Andruss, former sales manager of the Congress Cigar Company, are receiving post- cards from him stating that he is in St. Petersburg, Fla., enjoying plenty of golf and having a good time. Yahn & McDonnell have been added to the list of "Condossis" cigarette distributors for this territory and the brand is meeting with a splendid demand. The "Condossis" brand is manufactured in three different blends, and the packaging is particularly attractive. ee Y. es sir. Camels are always FrESH ! 59 Vl^HEN you call for Camels you get fresh cigarettes — cigarettes that are made fresh, then kept fresh. No matter where you chance to be — on a railway diner, at a crossroads store, on the desert or by the sea, the Camel Humidor Pack keeps germs, dirt and weather out and holds the pre- cious, natural moisture in. Awaiting your enjoyment is all the orig- inal delight of choice Turkish and mild, sun -ripened Domestic tobaccos expertly blended into the coolest, mildest cigarette you ever touched match to. With each puff you get the pure, unal- loyed fragrance and joy of rare tobaccos, unimpaired by excessive heat. For Camels are never parched or toasted. The Reynolds method of scientifically applying heat guar- antees against that. If you haven't tried Camels lately, switch over to this brand for just one day. After you've known their mildness; after you've com- pared their smooth, throat- . easy manners with the harsh, hot, stale smoke of parched - dry cigarettes, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPA^fY Wimton-Salem, N. C. ijon't rtmovt tht motsturt - proof wrapping from your package of Camth afltr you opin it. Tht Camtl Humidor Pack is protection against odors, dust and germs. In offices and homes, even in tht dry atmosphere of artificial heat, tht Camel Humidor Pack can be depended upon to delntr fresh Camels every time Camels 3tade FRESH — JT^jy^ FRESH "Are you Listenin'?" R. J. REYNOLDS TOBACCO COMPANY'S COAST TO - COAST RADIO PROGRAMS Prince Albert Quarter Hour Alice Joy, "Old Hunch, "and Prince Albert Orchestra, every nijjht except Sunday, National Broadcasting Com- pany Red Network Camel Quarter Hour Morton Downey, Tony Wons, and Camel Orchestra, direction Jacques Renard, every ni^ht except Sunday, Columbia Broadcasting System See radio page of local newspaper for time © 1932, R. J. Reynolds Tobacco Company i 8 52nd year THE TOBACCO WORLD March 1, 1932 News From Congress F E D E R A L Departments From our M^ashington Bureau 62ZAlbe6 Building ISCONTINUANCE by the Federal Trade Com- mission of practically all its important inves- tigations, including the study of chain store operations, threatens as a result of the Ad- ministration's economy plan, under which its appro- priation for the coming fiscal year will be sharply cut. Estimates by the commission of its money needs for the coming year called for $1,G26,000. Nearly $400,- 000, however, was lopped off by the budget bureau, which recommended an appropriation of $1,236,000, and there are possibilities of further cuts by the House Appropriations Committee, now engaged in writing the money bill for the Commission and other independ- ent offices. Every appropriation bill thus far reported to the House of' Representatives by the committee has been reduced under the budget estimates, so that a further cut in the Commission's fund is reasonably to be ex- pected. In no instance has the committee allowed more for any Government activity than suggested by the budget' bureau, turning a deaf ear to all pleas that unless additional funds were provided essential w^ork must be abandoned or curtailed. Under the budget estimates, a reduction of about 35 per cent, in the personnel of the Commission will be required, necessitating the dismissal of some 185 of the 528 persons now employed, it is declared. It will also be necessary to abandon practically everything ex- cept the regulatory work to carry on which the Com- mission was originally created. The chain store investigation has been in progress since 1929, and a number of preliminary survey reports have been issued ; a great deal of work remains to be done, however, before the Commission will be in a posi- tion to draw any definite conclusions as to the desirabil- ity of legislation to deal with the subject. Ct3 C?3 Cj3 Manufacturers' Sales Tax May Be Imposed Imposition of a manufacturers' sales tax w;ill be one of the major features of the revenue bill which in a few days will be reported to the House of Representa- tives by the AVays and Means Committee, it is indicated in statements by committee leaders. Unable to raise tlie one and one-quarter billion dollars necessary to l)alance the budget, through the medium of increased individual and corporation income tax rates and the im])osition of excise taxes on a small number of commodities and services, memliers of the •committee for some days have slowly been developing the plan for a general manufacturers' sale tax to be in the form of a license tax based on gross sales, through which some $600,000,000 of revenue is expected to be raised. Already taxed by the Government at high rates, it is the general opinion that tobacco and its products will be exempted from application of the manufac- turers' tax because of the double-taxation feature, but whether it will be possible to eliminate the increase in cigarette and tobacco taxes recommended by the Treas- ury Department is not yet entirely clear although it is generally believed this will be done. Faced with the threat that increased taxes would return no added revenue because of the falling off in business w^hich would follow their application, the com- mittee now appears to be ready to depend upon the general sales tax as the backbone of the bill. The in- crease in toba-cco taxes, it was said during hearings, would restrict sales to such an extent that the Govern- ment might find itself receiving even less revenue than at present. The same was said regarding admissions taxes and other special levies proposed by the Adminis- tration. Ct3 Cj3 Ct3 Buy "Home Products" Campaign Being Considered With export trade at a low level, due to world depression and rapidly rising tariff barriers abroad, leaders in American industry are giving consideration to the inauguration of a *' trade in home products" campaign, similar to that which for several years has been waged in England with the slogan **Buy British". Publication by the Department of Comnaerce of figures indicating that import trade is being maintained at a relatively higher level than are exports — the former declining only 10 per cent, in quantity last year as compared with 1930 while the latter dropped 20 per cent. — is giving impetus to the movement. It is pointed out that the closing of foreign markets has hit domestic industries hard and new fields of consumption must be found. In many instances the home product competes with imported merchandise. In the tobacco industry this was the contention of the domestic wrapper growers in protesting continued im- portation of Sumatra wrapper tobacco, and the situa- tion is particularly acute in the case of shoes, watches and a number of other important commodities. Indications are that a number of years will elapse before Europe again becomes the important market for American merchandise which she was before depres- sion and it is accepted that something must be done to increase the market for important commodities at home to consume that proportion of our production which formerly was sent abroad. IMarch 1, 1932 THE TOBACCO WORLD 52nd year APPRAISAL OF T. P. RYAN ESTATE FILED N APPRAISAL of the estate of the late Thomas Fortune Ryan for tax purposes w^as filed in New York State on Februarv 15th, and dis- closed a valuation of $141,834,497 gross and $135,164,110 net. These figures were based on the value of Mr. Ryan's holdings on the day he died, November 23, 1928. How many and which blocks of securities in the Ryan estate have been held intact by the executors was not showTi in the document filed. In December, 1930, the financier's son and executor, Clendenin J. Ryan, filed an accounting of the estate which indicated that its value had already shrunk to $100,000,000 or less. Mr. Ryan w^as an important factor in the tobacco industry during his lifetime and a great portion of his assets were in the form of securities of the various tobacco companies. A list of tobacco securities held at the time of his death was as follows : Appraised Value as of Shares Company Nov. 23,1928 667 American Machine & Foundry Co, 7% preferred $76,538.25 6,670 American Machine & Foundry common 1,153,910.00 3,350 American Snuff Co. common 633,150.00 13,500 American Tobacco Co. common B. 2,414,812.50 4,600 American Tobacco Co. common. . . 821,100.00 60,470 British-American Tob. Co., Ltd., bearer 1,761,460.00 487 British-American Tob. Co., Ltd., registered 14,123.00 7,800 G. W. Helme Co. common 858,000.00 808 Imperial Tobacco Co. of Great Britain and Ireland, ordinary. 21,174.12 1,920 International Cigar Machinery de., common 199,680.00 99,076 Liggett & flyers Tob. Co., com. B . 9,127,376.50 58,000 Liggett & Myers Tob. Co. common 5,249,000.00 34,619 P. Lorillard Co. common 1,021,260.50 14,020 ^LacAndrews & Forbes Co. com. . . 702,752.50 8,716 Mengel Co. common 281,635.75 105,735 R. J. Reynolds Tobacco Co, com- mon B 17,234,805.00 1,000 Tobacco Products Export Corp. common 325.00 11,147 Tobacco Products Corp. div. ctfs. for United Cigar Stores Co. of Amer. common Series A 239,660.50 5,475 Tobacco Products Corp. div. ctfs. for United Cigar Stores Co. of Amer. common Series B 117,712.50 5,475 Tobacco Products Corp. div. ctfs. for United Cigar Stores Co. of Amer. common Series C 98.550.00 45,450 Tobacco Products Corp. common. 4,722,595.08 7,652 Tobacco Securities Trust Co., Ltd., ordinary 111,186.71 7,652 Tobacco Securities Trust Co., Ltd., deferred par value 5s ... . 83,200 Union Cigar Co. common ] 6,800 Union Tobacco Co., Class A 66,400 Union Tobacco Co. common 722 United Profit Sharing Corp. com. . 65 LTnited Profit Sharing Corp. pf . . . 17,165 United States Tobacco Co. com. . . 750 J. S. Young Co. common 31,497.15 465,920.00 1,008,000.00 996,000.00 8,644.00 755.63 1,802,325.00 81,000.00 *'IS IT ALIVE?" IGGETT & MYERS TOBACCO COMPANY effectively stopped foot tratfic at the northeast corner of Fifth Avenue and Forty-second Street, New York, by means of a *' Chester- field" window display featuring a highly humanized midget robot. Small animated figures have always been successful as attention getters, but this one was the last word in mechanical ingenuity and the first of its kind to be seen on Fifth Avenue. The store manager reports that this exhibit drew crowds throughout the day, requiring the efforts of policemen at regular intervals to keep the sidewalk from being blocked. An enterprising greeting card merchant capitalized on the large crowds by leasing the store next door. In the words of the old song, the midget ** rolls his eyes, and shows surprise, and that isn't all." It raises its eyebrows, wiggles its ears, moves its head, points with one hand to the "Chesterfield" cigarette in its other hand and moves its lips as if to repeat the legend that flashes behind it : I'll Be Fair With You You 487,000 People Who Pass Daily All "Chesterfield" Asks Is a Trial. Many persons, women particularly, detached them- selves from the crowd viewing the robot and pressed noses against the window to discover if by any chance it could be a live midget. The figure is made of hard rubber and the life-like gestures come from electrical impulses generated l)y a dynamo behind the exhibit. A gray background and red side panels furnished the dominating color notes of the display mounting. The largest single item of the assets of the estate was in the North Virginia Corporation, a holding con- cern of which Mr. Ryan held all of the 50,000 shares, valued at $39,997,500, and 55 debentures listed at $5,500,000. The assets of the North Virginia Corporation were placed at $44,102,700 and liabilities at $6,390,000. Its principal holdings were: Shares Value 755,612 British-American Tobacco Co $21,157,136 83,787 Roval Tvpewriter C^o. common. . . 6,284,043 30,733 Roval Tvi)ewriter Co. preferred. . 2,919,658 207,460 Imperial Tol)acco Co. of Great Britain and Ireland 5,808,992 94,451 Tobacco Securities Trust, ordinary 1,374,262 94,451 Tobacco Securities Trust, deferred 389,370 10,700 Carolina, Clinchfield & Ohio Rail- wav ( 'ompanv 882,750 48,817 ( linchfield Coal'Co 488,170 5,000 Ellisdale Co., Inc 406,218 New York State, where ^Fr. Ryan lived for fifty- seven vears (hiring which he amassed his wealth, re- ceived the Imlk of the inhei'itance and estate taxes total- ing $25,055,659. The transfer tax New York received alone amounted to $9,241,187. Federal taxes took $5,011,131 of the estate, which also paid a small tax on real estate and personal i)roperty in Mr. Ryan's native State of Virginia. The only larger estate in the history of the Trans- fer Tax Bureau was that of the late Pavne Whitnev. It totaled approximately $180,000,000. I 10 52nd year THE TOBACCO WORLD March 1, 1932 March 1, 1932 Say You Saw It in The Tobacco World 52nd year 11 TARGET CIGARETTE PAPERS A HIT BOOK OF HE Brown k Williamson Tobacco Corporation, Louisville, Ky., are rapidly obtaining 100 per cent, distribution on their five-eent books of genuine *' Target" gummed cigarette papers. Dealers are commenting regarding the attractive dis- play cartons, and a lot of stores are putting them on their counters and report a ' ' sure fire seller. ' ' AMERICAN TOBACCO SUIT DISMISSED The shareholders' suit to rescind the low-priced sale of 56,712 shares of stock in the American Tobacco Company to its president, George W. Hill, and other officers was dismissed on February 16th by Federal Judge Robert P. Patterson on the grounds of no juris- diction. Judge Patterson dismissed the suit without preju- dice. He ruled that the action should be brought in the New Jersey Courts, inasmuch as the American To- bacco Company was incorporated under the laws of that State. BRITISH-AMERICAN DIVIDEND The British-American Tobacco Company, Ltd., London, Eng., has declared interim dividends of lOd on each of the American depositary receipts for ordinary bearer shares and for ordinary registered shares, free of tax, but less expenses of depository. Dividends of 21/2 cents on each of the American de- pository receipts for 5 per cent, preferred bearer shares and 5 per cent, registered shares were also de- clared, less British income tax and deductions for ex- penses of depository. All paj^ments are due April 7th to stockholders of record March 3d. AMERICAN CIGAR EARNINGS The American Cigar Company report for 1931, issued last week, shows net loss for the year of $1,110,- 405, after taxes, depreciation, etc., compared with net loss of $1,590,870 for the year 1930. GOOD YEAR FOR BROWN & WILLIAMSON George Cooper, president of Brown & Williamson Tobacco Corporation, reported 1931 as being a most satisfactory year for his company. JOSE M. DIAZ, SR., PASSES EMBERS of the industry were recently shocked to learn of the death of Jose M. Diaz, Sr., on February 15th, following a period of ill health. Mr. Diaz was a prominent figure in the cigar manufacturing industry for many years and was head of the Preferred Havana Tobacco Company, manufaeturers of the ** Henry the Fourth'' and other popular brands. Mr. Diaz was born in Spain and came to this coun- try in 1883, and a short time later became associated with his brother in the cigar manufacturing business in New York City. Later he went to Havana and engaged in the manufacturing business with another brother there. After spending some time there he again transferred his interests to Tampa, and in 1913, when the Pre- ferred Havana Tobacco Company was organized as a merger of the firms of Bustillo Brothers & Diaz, P. Ver- planck & Company and Calixto Lopez & Company, he became president of the company and retained that position up until his death. Funeral services were held on Thursday, February 18th, at Christ Episcopal Church, Hackensack, N. J. He is survived by his mother and one son, Jose M. Diaz, Jr. He w^as sixty-five years old. HAVANA MARKET ACTIVE Advices from Havana are to the effect that there has recently been considerable activity in the leaf to- bacco market there, with a great number of important purchases having been made of Vuelta Abajo leaf at prices varying between $50 and $70 a bale. Very little Partido leaf has been sold however, due to the fact that the stock of this leaf is small and is held by persons who are demanding a higher price than buyers will pay up to the present time. It is reported that the 1930-1931 crop of Cuban leaf has been one of the most easily-disposed-of crops ever grown, and it has been an agreeable surprise to the growers. CIGARETTE PAPERS IN OHIO Persons selling or giving away cigarette wrappers in Ohio are not required to secure a license under the new cigarette license law, Attorney General Gilbert Bettman has held. **I am inclined to the belief that the sale of cigar- ette wrappers without complying with the provisions of the law relating to cigarettes was not intended, al- though a literal reading of the penal statute tends to support the opposite conclusion," Mr. Bettman said in his opinion. **In other words, as an academic propo- sition, it might well be said that this statute makes it a crime to sell cigarette w^rappers without complying with all the provisions of law necessary to engage in the business of selling a different commodity, namely cigarettes; but a consideration of the entire act would, in my opinion, lead a court to conclude that this lan- guage in the penal section is inadvertent. ' ' AMERICAN SNUFF EARNINGS UP The American Snuff Company reports net income for 1931 of $1,916,132, after depreciation and Federal taxes, equivalent, after the 6 per cent, preferred divi- dends to $3.81 a share on 440,000 shares of common stock. This compares with $1,893,049, or $3.76 a com- mon share in 1930. Did you soy »o;^ yes, \ *&'<*-'" 7PBACCO SUPREME COURT UPHOLDS UTAH BILLBOARD LAW N FEBRUARY 23d, Utah's right to keep adver- tisements of cigarettes, cigars — all tobacco, in fact — off its billboards was upheld by the United States Supreme Court in a decision in which all the Justices agreed. Justice Brandeis in his opinion dwelt upon the fact that such sales methods are thrust upon the public. The Utah statute also prohibited tobacco advertis- ing in street cars and by placards elsewhere, and Jus- tice Brandeis said they too were placed where one saw them whether he wished to or not. He said there w^as little foundation in the claim that Utah had discriminated against billboard advertising in favor of the newspapers, magazines and the radio. **In the case of newspapers and magazines,'* he said, ** there must be some seeking by one who is to see and read the advertisement. The radio can be turned off, but not so the billboard or street car placard." * ' These distinctions, ' ' he added, * * clearly place this kind of advertisement (billboard) in a position to be classified so that regulations or prohibitions may be imposed upon all within the class. This is impossible with respect to newspapers and magazines. The legis- lature may recognize degrees of evil and adapt its legis- lation accordingly.'' The case which put the Utah law to the test came from a cigarette advertisement displayed on a billboard in Salt Lake City. The law was upheld in the Supreme Court of Utah and the Packer Corporation of Delaware appealed. GREGG HEADS AMERICAN CIGAR COMPANY It was announced on Thursday that Albert H. Gregg, of Faber, Coe & Gregg, New York distributors, had been elected president of the American Cigar Com- pany to succeed George W. Hill, president of the Amer- ican Tobacco Company. Junius H. Parker and George H. Eichelberger were elected directors of the cigar company to fill vacancies. THURSTON AND PETERS VISIT NEW YORK E. H. Thurston and E. S. Peters, sales managers for the St. Louis branch of Liggett & Myers Tobacco Company, arrived in New York on February 15th to spend several days at Liggett & Myers' headquarters. Mr. Thurston is one of the company's vice-presidents. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH, Wheeling, W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Pre»ident JULIUS LICHTENSTEIN, New York. N. Y ' Vice-President WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y - Vice-President GEORGE H. HUMMELL, New York, N. Y ' Vice-President H. H. SHELTON, Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va ..Vice-President HARVEY L. HIRST, Philadelphia, Pa ...Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio ..••.•....•.....•.•••,««,«^ Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City ,.„•. President MILTON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City SecretaryTreasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark. N. J President ALBERT FREEMAN. New York, N. Y First Vice-President ABE BROWN", 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President CUBAN BAN ON U. S. CIGARETTES LIFTED EPORTS from Havana state that *'Hip- patting" may continue merrily on tlio Ameri- can side, where vigilant customs officers seek to bar entry of contraband liquids, l)ut the days of "frisking" on the Cuban front have ended. President Machado has signed a law which permits each tourist to enter the country with 400 of his favorite cigarettes duty free. Tirso Mesa, Mayor of Havana, and president of the National Tourist Commission, obtained the new ruling from Congress after visitors had complained that they had been searched for contraband cigarettes by customs officials. 12 52nd year THE TOBACCO WORLD March 1, 1932 AMERICAN PURCHASES OF SUMATRA TOBACCO, 1930 HE TOTAL crop of Sumatra tobacco during the year 1930 aggregated 37,237,810 pounds, of which 2,970,560 pounds, or 8 per cent., were shipped to the United States, reports American Commercial Aattache Jesse F. Van Wickel to the To- bacco Division of the Department of Commerce. Dur- ing the years 1919 to 1923, inchisive, the United States bought an average of 18 per cent, of the annual crops amounting to 5,536,721 pounds per year. Over the five- year period, 1924 to 1928, inclusive, American purchase averaged 14 per cent, of the total or 5,497,743 pounds per annum. The leading Sumatra tobacco producers are the Deli Maatschappij, the Senembah Maatschappij, the Deli Batavia Maatschappij, the Tabak Maatschappij *' Arendsburg" and the Cultuur Maatschappij de Oost- kust, all of wiiom operate estates on the island of Su- matra in the Netherland East Indies. The 1930 crop of the Deli Maatschappij consisted of 13,704,499 pounds of Sumatra tobacco, of which 1,120,113 pounds or about 8 per cent, were purchased for American account. The total crop of the Senembah Maatschappij aggregated 1,125,620 pounds, of which approximatelv 11 per cent, or $753,620 pounds w^ere ex- ported to the' United States. The Deli Batavia Maat- schappij recorded a Sumatra crop of 5,541,659 pounds ; exports to the United States amounted to 407,057 pounds, or about 7 per cent. The total Sumatra crop of the Tabak Maatschappij Arendsburg comprised 3,909,373 pounds, of which 188,008 pounds, that is about 5 per cent., were purchased for American account. The crop of the Cultuur Maatschappij de Oostkust totaled 2,250,103 pounds of Sumatra tobacco; the United States bought about 3 per cent. The following table shows the total Sumatra crop during the period 1920 to 1930, and sales to the United States : Total Production Per Cent. Sold to Year in Pounds 1920 21,892,000 1921 29,200,000 1922 35,412,000 1923 37,295,000 1924 40,044,000 1925 39,734,000 1926 44,202,000 1927 41,270,000 1928 46,788,000 1929 42,692,000 1930 37,238,000 The tobacco grown in the Netherland East Indies is sold by public auction held in the Netherlands. The data given above represent exclusively the sales of Sumatra tobacco during the tobacco auctions, and the ** second hand" trade, which is often very likely during and after the auctions, has not been taken into consid- eration. United States 16.0 16.9 20.2 13.6 13.2 9.9 10.2 13.9 13.0 11.7 8.0 BRITISH AMERICAN BUSINESS SATISFACTORY ** British-American Tobacco Company's business is maintaining a satisfactory trend, although naturally it has l)een affected to some extent by the depression," Sir Hugo Cunliffe Owen, chairman of the board, said on arrival here to look over his company's American in- tercsts. After spending some time in New York City, Sir Hugo journeved to Louisville, Ky., where he inspected the Brown &*Williamson Tobacco Corporation's plant, w^hich is a subsidiary of the British-American Com- pany. HALF MILLION HAVE SEEN ** CHESTERFIELD" EXHIBIT HERE is no doubt that the cigarette smoker is keenly interested in how his favorite cigarette is made, says W. A. Blount of the advertising department of Liggett & Myers Tobacco Com- pany, Inc., who has just returned to New York from a week's trip to Chicago where he inspected the Ches- terfield Cigarette Exhibition Factory. Mr. Blount di- rected the set-up of this exhibit on the ground floor of the Railway Exchange Building, Jackson and Michi- gan Boulevards, last June. The two cigarette-making machines and the packing machine have been in opera- tion there daily except Sundays. Mr. Blount found that the most frequent comment among the 1500 daily visitors — on some days the number rises to 3000 — had to do with the cleanliness of the exhibit. The machines are glittering examples of chromium-plate and they are set off in a background of white vitriolite and canora glass trimmed with black and silver. Although 1500 cigarettes are produced each minute, there is no trace of tobacco dust or torn cigarette paper. Some of the questions asked by visitors seem amus- ing to a tobacco man, Mr. Blount reported, but they serve to show the interest in the exhibit which has never flagged since the opening day. It is estimated that close to half a million persons have visited the show-place on the Boul' Mich and gone away with a better understanding of the care of manufacture and the quality of tobacco and paper which go into the making of *^ Chesterfields." KENTUCKY CIGARETTE TAX PROPOSED The Kentucky Legislature may yet levy a tax on cigarettes and cigars before it solves the problem of balancing the budget demanded by Governor Ruby Laffoon, according to information given tobacco men in Frankfort, Ky., on February 20th. L. B. Hundley, of Hodgenville, a Democratic mem- ber of the State House of Representatives, has intro- duced a bill for a State stamp tax on cigarettes and cigars, the tax being one-fifth of a cent for each cigar- ette and 10 per cent, of the wholesale price of cigars. Cigarettes selling for a cent each would thus be taxed at the rate of 20 per cent, under the proposed bill. The bill, which was referred to the Committee on Revenue and Taxation No. 1, is the second in the hands of that committee to provide for such a tax, as the com- mittee already has for consideration a measure intro- duced by Representative J. R. Johnson, of Marion County, which provides for a tax of five cents a package on cigarettes and one cent each on cigars. J. S. YOUNG REPORTS The J. S. Young Company, Baltimore, manufac- turers of licorice flavorings, reports net profit of $229,- 940 for 1931 after charges and Federal taxes, equiva- lent after dividends paid on the 7 per cent, preferred stock of $10.66 a share on 15,000 shares of common stock This compares with $255,816, or $12.38 a share on the common shares in 1930. STOCKS OF LEAF TOBACCO UP Stock of leaf tobacco held by dealers and manu- facturers January 1, 1932, were reported last week by the Department of Agriculture to total 2,012,780,000 pounds, as compared with 1,853,476,000 on that date a year ago. March 1, 1932 Say You Saw It in The Tobacco World 52nd year 13 TOBACCO PRODUCTS DECLINE IN JANUARY HE following comparative data of tax-paid products indicated by monthly sales of stamps are obtained from the statement of Internal Revenue collections for the month of January, 1932, and are issued by the Bureau. ( Figures for Jan- uary, 1932, are subject to revision until published in the annual report) : Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. January 1931 252,620,780 14,584,000 90,697,140 4,534,738 502,660 1932 266,017,640 5,191,617 67,520,082 3,719,778 474,392 Total 362,939,318 342,923,509 Cigars (small) No. 28,453,013 27,851,587 Cigarettes (large) No. 562,581 354,100 Cigarettes (small) No. 9,368,208,250 8,962,787,103 Snuff, manufactured. . . lbs. 3,630,508 3,608,348 Tobacco, manufactured . lbs. 28,066,310 27,274,358 Note: The above statement does not include tax- paid products from Porto Rico and the Philippine Islands. This information is sho^\^l in supplemental statement. Tax-paid products from Porto Rico for the month of January : Products January Cigars (large) : ^^961 l£6T Class A No. 8,219,700 3,068,410 Class B No. 112,500 108,000 Class C No. 116,550 283,500 Class D No. Total Cigars (small) No. Cigarettes (large) No. Cigarettes (small) No. Tax-paid products from the month of January : Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. Total j.,vyv/ V 8,448,750 3,460,910 1,000,000 100,000 10,000 188,400 1 the Philippine Islands for J ami ary 1931 1932 9,153,385 9,590,740 106,430 109,473 37,854 29,538 600 1,560 1,605 20 9,299,874 9,731,331 Cigarettes (small) No. 335,350 158,850 Tobacco, manufactured, lbs. 87 54 Note: Quantities of tax-paid products shown in above statements are indicated by stamp sales for the month. Comparative Statement of Taxes Collected During the Seven Months of Fiscal Year First seven months Objects of Taxation Fiscal year Tobacco manufactures : 1931 1932 Cigars $11,259,159.51 $9,226,134.54 Cigarettes 208,746,629.03 188,746,744.55 Snuff 4,135,092.92 4,048,395.65 Tobacco, chewing and smoking 33,853,051.25 34,345,163.07 2 FOR Always a winner. Now a "2 for 5" sensation in its new package ...Give War Eagle front counter display ... for fast sales . . . rapid repeats . . . and quick profits. INDIVIDUALLY BANDED CELLOPHANE WRAPPED WAR EAGLE CIGARS p. LORILLARD CO., INC. 119 WEST 40tb street, NEW YORK "BEST OF THE BEST" Manufactured hj A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Keo West, Florida UTICA TOBACCO COMPANY MOVES The Utica To])acco Company, manufacturers of ** Bucko*' smoking and chewing" tobacco, has moved its manufacturing plant from 802 Second Street to 320 Broad Street, Utica, N. Y., and installed new packaging machinery. Edw^ard F. Dunn, who has been connected wdth the industry for thirty-seven years, is manager of the Utica plant. WEBSTER EISENLOHR REPORTS LOSS Webster Eisenlohr, Inc., and subsidiaries, report net loss for 1931 of $1G3,372, after depreciation and in- terest, as compared with net loss of $246,570 in 1930. 14 52nd year THE TOBACCO WORLD March 1, 1932 March 1, 1932 THE TOBACCO WORLD 52nd year 15 I UNITED SELLS REALTY FIRM STOCK HARLES F. NOYES, president of Charles F. Noyes Company, Inc., has purchased 48,330 shares of the company's stock held by United Cigar Stores Company of America. Mr. Noyes has resigned as a director of Cigar Stores Realty Com- pany, Inc., and George J. Wise, George Wattley and Albert C. Allen, officials of United Cigar Stores, have resigned as directors of Charles F. Noyes Company, Inc., being succeeded by Edward J. Crawford, Edward E. McNally and Maixiel S. Keene, all of the Noyes' organization. Mr. Noyes purchased the United Cigar interest in his company with his personal funds, the purchase being made both for his own account and for certain employees and executive shareholders of the company. Charles F. Noyes Company, Inc., was organized in 1926, at which time ownership of substantially 50 per cent, of the company was acquired by United Cigar Stores' interests. Since then, United 's cash in- vestment has been entirely paid off with the retirement of $1,200,000 of the Noyes Company's preferred stock. The outstanding Noyes Company common stock, amounting to 120,000 shares, with the exception of a relatively small amount held by friends, is owned by active members of the Noyes organization. Mr. Noyes states he has never personally sold a share of his stock in the company, and in buying the substantial block from United Cigar, is looking forward toward a more complete mutualization of the Noyes business. ** Sale of its Noyes Company stock by United Cigar and its purchase by Mr. Noyes," the company states, *'was due largely to the fact that United 's business has changed considerably in the past two years, and United Cigar's policy is now against speculative real estate investments or acting as dealers in real estate or in the mortgage field. However, the same cordial rela- tions exist between the two companies as heretofore, notwithstanding the fact that there is no longer any financial connection as stockholders between the United and Noyes organizations. The Noyes Company still is acting as agent for United Cigar in the New York City Metropolitan district." William B. Falconer has been made first vice- president of Charles F. Noyes Company, Inc. ^ Com- pany's board of directors henceforth will consist en- tirely of active Noyes organization officials. — Wall Street Journal. MAN 102 CHEWS TOBACCO Henry Mickels, Sumner, 111., passed his one hun- dred and second birtliday on January 14th, and stated he had smoked and chewed tobacco since 1839. Mr. Mickels was with Sherman on his famous march to the sea and remembers seeing Abraham Lin- coln hauling a load of wood in Charleston, 111., long be- fore the Civil War. Stephen R. Ferguson, of Wichita, Kan., also passed his ninety-first birthday on January 14th, and stated his longevity was due to the fact that he has chewed tobacco since he was eight years old. IMPERIAL TOBACCO DIVIDEND The Imperial Tobacco Company has declared a dividend of 1% per cent, on the common stock and 3 per cent, on the preferred, payable March 31st to stock- holders of record March 2d. Election of Earle Spafford as vice-president was announced. He had been a director since January 1, 1931. TOBACCO AND ALLIED STOCKS REPORT OBACCO and Allied Stocks, Incorporated, an investment company, reports for 1931 net in- come of $165,990, before loss on sale of securi- ties totaling $440,020. This is equal to $3.13 a share on 53,000 shares outstanding, compared with $3.38 a share earned on 60,000 shares outstanding at the end of 1930. Balance sheet shows investments at cost of $2,845,- 369 had a market value on December 31, 1931, of $1,585,000, indicating an excess of cost over market value of $1,257,569. Net assets were equivalent to $34.03 a share on 53,000 shares outstanding, as com- pared to $43.35 on December 31, 1930, on 60,000 shares outstanding as of that date. As of December 31, 1931, 95.43 per cent, of the cor- poration's assets were represented by cash and divi- dend-paying securities. Tlie principal change in the corporation's portfolio during the year was an increase in its holdings of cigarette manufacturing companies' stocks. Investments in cigarette manufacturing com- panies now comprise 62.04 per cent, of its total invest- ments as compared with 54.40 per cent, reported on December 31, 1930. The investments in cigar manufac- turing companies have been reduced from 26.35 per cent, as of December 31, 1930, to 17.16 per cent, as of December 31, 1931. At a special meeting of stockholders on December 29th, stockholders ratified the retirement of 7000 shares of its own stock, acquired in the open market. The total cost of these shares was $170,497. HOW MANY WORDS IN ** HENRY GEORGE CIGAR"? New Advertising Campaign Offers $1000 in Cash Prizes to Newspaper Readers The American public seems more interested in prize contests than ever before, and Consolidated Ci- gar Corporation is taking advantage of this fact. In a number of cities in different parts of the country, a display advertising campaign was started toward the end of February on that famous old cigar, ''Henry George,'' offering twenty-six prizes, with a top of $500, to those making the most words out of the letters in H-e-n-r-y G-e-o-r-g-e C-i-g-a-r. Naturally, this is pleasing to the trade as it inevi- tably increases demand for this brand, for each con- testant accompanies his or her list of words with ten bands from "Henry George" cigars. "Reasonable facsimiles in colors" can be used but, of course, nearly everybody prefers to buy ten "Henry George" cigars and take the bands off. The judges in the contest are the Consolidated Cigar Corporation, New York, where every mail brings a load of envelopes addressed to the "Contest Depart- ment. ' ' IMPERIAL TOBACCO CANADA EARNINGS The Imperial Tobacco Company of Canada, Ltd., reports for 1931 net profit of $5,914,079 as compared with net profit of $8,153,638 for the fifteen months ended December 31, 1930. UNITED STOCKHOLDERS APPROVE CHANGE Stockholders of the United Cigar Stores Company of America at a meeting last week approved a change in the company's stock to 6,000,000 shares of $1 par from an equal number of no-par shares. Editorial Comment (Continued from Page 3) other phase of the business. And it is not to be denied that the packaging of the cigar is of the utmost im- portance. Cigar manufacturing requires experts to choose tobaccos. It further demands that tliese tobaccos be expertly handled and prepared for the manufacturing process. And there is some skill required in actually manufacturing the cigars themselves. If we concede the fact that all this has been per- fectly accomplished, the manner in which the cigar is packed and the package in which it is contained, has a very definite bearing on the condition in which the cigar reaches the consumer. And from the packaging to the consumer the cigar passes through the most im- portant period of its life. All the fine tobaccos in the world will not make a good cigar unless it is properly packed and packaged. And the non-porous wrapper and the substitute con- tainer are used in defiance of natural laws and ob- viously to the detriment of all the inherent values in the freshly made product. Our benevolent Government has contributed much to the tobacco industry in determining the best types of tobacco grown in this country, tlieir fertilization, and methods of handling. The Department of Agriculture has made important contributions to cigar leaf culture. But what does all this amount to if after the finest of tobaccos are made into cigars, there is no available information as to the effect of various types of cover- ings and containers on these cigars in transit from the factory to the consumer? A certain English manufacturer sought to meet the demands of the American public for small quanti- ties of Stilton cheese, which is not cheap. He put it up in dignified glass containers of less than a pound in weight. A patent tin top which made it airtight contained a small rubber ring. Tliis ring probably cost only a fraction of a penny, yet it ruined an article which sold for from $1.25 to $1.50 a jar. Here was an expensive article ruined for consump- tion by the use of an insignificant item in packaging which had not been tested or investigated. When cigar manufacturers refuse to investigate to the fullest extent the method of packaging and the character of the container in which their brands are offered to the public for consumption, they are throw- ing to the four winds all the time, money and effort in- vested in buying good tobaccos, and properly handling and manufacturing them. The proper packaging of cigars is just as impor- tant to the cigar industry as the packaging of fruits, vegetables or candies. And a poor container can de- stroy the goodwill of any nationally known product. CONTINENTAL CIGAR TO INCREASE OUTPUT The Continental Cigar Corporation, of Scranton, Pa., is completing an addition to its factory which will provide 2000 more square feet of manufacturing space to its plant. The plant now employs 200 persons and has an output of 18,000,000 cigars annually, but when the addition is completed, 90 more employees will be added to the force and production will be increased to 25,000,000 cigars annually. NEW CAMPAIGN BACK OF **44" CIGAR ONSOLIDATED CIGAR CORPORATION is telling the world" the news about '*44" cigars. The vehicle used is newspapers where an im- pressive campaign is stimulating sales. There is a simple, rugged character to this adver- tising that is attracting much favorable comment. In each advertisement there is a fine old cigar store In- dian at the top, giving point to the line in eaeh ad ''Same Old Quality— Same Old Price." A big cut-out of this Indian is being displayed by the retail trade. The cigar is shown actual size and besides it a ruler measuring five and one-half inches. A huge '*44" in an oval is tied up with a boldly displayed line reading ''Now Only 5 Cents." The text is short and snappy, with such headlines as: "Big in Everything but Price" — "What's Your Lucky Number?" — "Fastest Growing Cigar in America." For many years, "44" cigars were a big seller in Class B. Now that they are priced in Class A, sales are reported to be increasing at a record-breaking pace. Consolidated Cigar Corporation is showing its belief in the future of "44" cigars by the nature and extent of its early spring advertising. PANAMA TO CURB TOBACCO SMUGGLING In an effort to wipe out tlie smuggling of tax-free cigarettes from the Canal Zone into the republic of Pan- ama, the Secretary of the Treasury lias prepared a decree for signature of the President, which will re- quire that the word "Panama" be printed on every cigarette and every package imported there. Cigarettes are the chief item of illicit merchandise transported from the Canal Zone, and hence the chief customs problem. All tobaccos are sold freely at the Canal Zone restaurants for cash, whereas at the com- missaries coupons are required. Panama at various times has stationed customs inspectors outside the res- taurants and arrested purchasers who crossed into the republic and could not prove they were employees of the Panama Canal or the Panama Railroad. A fine of $25 and confiscation was, and is, the usual penalty, but there are so many ways of circumventing such control that it has been of little aid in correcting the situation. PIPE COMPANY ORGANIZED IN CHICAGO The Interstate Briar Pipe Company has been or- ganized and chartered as a corporation at Chicago, with headquarters at 5707 North Clark Street. The new firm is capitalized at $20,000 and will deal in pipes of all descriptions, a general line of smokers' articles and ^ift and novelty items as well. Mem])ers of the firm are 0. K. Mitchell, Jr., Carl Rosequist and George Khoubesser, each having been identified with the pipe industry for the past ten years. TOBACCO NAME FROM REMOTE ISLAND According to one explanation tobacco takes its name from "tobaro" the name given to the pipes which Spaniards and Cari])s in the West Indies smoked. In Inrn this name is said to be derived from "Tobago," an island near Trinidad, southerly island lorminal of Canadian National Steamships plying from Halifax and Boston. It was on Tobago that Robinson Crusoe is supposed to have been marooned. » i 16 52nd year THE TOBACCO WORLD March 1, 1932 March 1, 1932 Say You Saw It in The Tobacco World 52nd year 17 OVERSIZED CIGARS FAVORED BY AMI LADIES HE BELLES of the Ami tribe on the island of Formosa consider a small cigar unsuited to their dainty feminine natures ; hence, they puff stogies of huge proportions. Just to be differ- ent, the Ami males consider it an aspersion on their masculine virility to be seen with a large cigar. They prefer them small and delicate, almost the size that are generally smoked in other parts of the world. Though the Ami are very particular about the size of their cigars, they are evidently not interested in whether or not sanitary precautions have been taken in making them. But sanitation does not play a very im- portant role in the lives of these natives. AVhile Amer- ican smokers prefer their cigars small in size, they are coming more and more to place sanitary protection first in the cigars they smoke. In response to this demand, one five-cent cigar is now finished under glass, and holds the distinction of being the only one in the whole world with which such extraordinary precautions are taken to insure the maximum health protection. In addition to their singidar smoking habits, the Ami natives are noted for their elaborite headdresses, which serve both as the local savings bank and as the social register. The head ornaments of the women are deco- rated with silver coins ; that gives their financial status, which, even in Formosa, is a clue to their position in society. OPINIONS ON CUT PRICES The reference by Blackpool and Blackburn Cham- bers of Trade to the* undercutting evil, in their annual reports, has formed the subject of interesting com- ments in trade circles. The Blackpool chamber executive frankly confess that after consideration, they came to the conclusion they could take no action because of the enormously- wide field it would immediately open, adding, *' Price- cutting is business suicide when the cuts become non- economic. Other traders are adversely affected. Some may be compelled to close down, but it is only a matter of time before the ^cutter' is compelled either to revise bis prices, stock cheaper lines, or close down himself.'' Mr. E. C. Page, wholesale manager to the manu- facturing firm of Messrs. Waller and Hartley, stated openly that ^* there is neither sense nor reason in price- cutting. Several legitimate traders are seriously handicapped by this form of unfair competition." The small trader had no chance of cutting prices as low as some cutting shops, because he bought smaller quanti- ties, and consequently had to pay a slightly higher price. He did not think any reputable firm would supply cut-price shops direct. * In many instances they were supplied by small manufacturers or wholesalers, and sometimes by small retailers. Mr. Al Badash, proprietor of thirteen cut-price shops in sweets and confectionery, in Blackpool, South- port, Morecambe and Fleetwood emphasized, when in- terviewed, that **It was better to have a big turnover and small profits than have a small turnover with big profits. Seventy-five per cent, of his competitors had not sufficient business acumen. They did not think for themselves, but allowed their federation or association to think for them. It is a matter of 'Follow-my- leader.' They should strike out in their own original lines and be independent. Then they would do better, ' ' he added. '*I am highly satisfied, and I must have sat- isfied the public, because our success depends entirely upon the public. Our methods meet with public ap- proval, and that is what w^e are here for." If other traders cut their prices he would still sell lower. ' * Tobacco ' ' — London. SEVEN MONTHS' WITHDRAWALS FOR CONSUMPTION — Decrease First 7 Mas. -\- Increase Cigars : Fiscal Yr. 1932 Quantity United States .... 2,204,701,430 -|- 77,270,940 Porto Rico 60,120,675 — 22,960,500 Philippine Islands 103,142,190 -f 9,983,585 Total 2,367,964,295 -f 64,294,025 Class B— United States .... 46,954,986 — 158,958,440 Porto Rico 800,350 — 1,287,900 Philippine Islands 884,816 — 112,921 Total 48,640,152 — 160,359,261 Class C— United States .... 744,158,790 — 276,913,392 Porto Rico 2,827,144 — 3,468,296 Philippine Islands 310,112 — 437,796 Total........ 747,296,046 — 280,819,484 Class D— United States Porto Rico Philippine Islands Total 46,127,796 — 18,000 -\- 4,536 — 22,857,363 400 4,204 46,150,332 22,861,167 Class E— United States .... Porto Rico Philippine Islands Total 8,827,340 500 9,202 6,312,658 2,100 59,779 8,837,042 — 6,374,537 Total All Classes : United States .... 3,050,770,342 Porto Rico 63,766,669 Philippine Islands 104,350,856 — 387,770,913 — 27,718.396 -f- 9,368,885 Grand Total.. 3,218,887,867 — 406,120,424 Little Cigars : United States .... 180,187,933 — 24,286,879 Porto Rico 3,000,000 — 50,000 Philippine Islands Total 183,187,933 — 24,336,879 Cigarettes : United States .... 62,979,309,335 —6,588,644,440 Porto Rico 4,708,400 — 8,462,600 Philippine Islands 1,220,030 — 387,063 Total 62,985,237,765 —6,597,494,103 Large Cigarettes: United States .... 2,874,682 — 1,058,731 Porto Rico 572,500 — 927,500 Philippine Islands 200 — 4,900 Total 3,447,382 — 1,991,131 Snuff (lbs.): All United States. 22,491,086 — 481,653 Tobacco (mfd.) (lbs.) : United States Philippine Islands Total 190,976,016 716 + 2,934,883 — 452 THE TOBACCO TRADE AND PRODUCTION OF CUBA, 1931 XPORTS of tobacco from Cuba during 1931 were the lowest in three years, according to a report prepared by American Consul Harold B. Quarton and released by the Tobacco Divi- sion of the Department of Commerce. The total to- bacco exports in 1931 amounted to only 22.8 million dollars compared with 33.5 million dollars in 1930. Buying was heavy at the beginning of 1931 but fell off at the end of the year. The world market appeared overstocked and buyers from the United States, Ar- gentina and Germany were making careful selections or keeping out of the market. Shipments to the Neth- erlands w^ere fairly heavy and regular throughout the entire year. American purchases of cigars have been decreasing and buyers confined themselves almost en- tirely to unstemmed tobacco in 1931. Spain, Great Britain, and France showed a disposition to take larger amounts of manufactured tobaccos. Argentine buyers bought about half and half by value of manufactured and unmanufactured. Dutch buyers purchased unman- ufactured tobacco, while Canadian purchasers w^ere principally of high quality cigars. The principal prod- ucts exported were as follows : 1929 1930 1931 Tobacco, wrap- per, fi 1 1 e r, stemmed and scrap t45,857,158 57,683,741 Cigars *89,183,507 72,346,412 Cigarettes *93.440,445 95,385,155 Picadura 1284,715 200,694 fPounds. •Number. In volume the crop of 1931 amounted to 80.7 mil- lion pounds and approximated that of 1930, both crops being considered very large. Many other countries produced bumper crops and purchases were not heavy, notwithstanding the fact that qualities in the 1931 crop were very good. Plantings for the 1932 crop have been reduced by 50 per cent, and, as weather conditions have not been favorable, making possible a broad heavy leaf, it is believed that the demand for 1931 tobacco will increase during the current year. The following tables show the Cuban crops by producing districts for the last four years : 1928 Bales Pounds Bales Vuelta Abajo 176,998 17,699,800 197,486 2,000,500 38,895 2,791,920 24,664 39,157,800 233,977 4,425,660 19,567 39,726,736 55,311,973 67,296,322 160,808 Semi-Vuelta 16,004 Partido 34,899 Remedios 261,052 Oriente 24,587 1929 Pounds 23,612,008 4,832,566 2,968,590 32,757,478 3,522,495 Total 513,540 66,075,680 1930 Bales Vuelta Abajo 186,216 Semi-Vuelta 35,164 Partido 19,941 Remedios 339,091 Oriente 17,853 Pounds 22,296,430 4,362,600 1,595,280 50,863,590 3,035,010 514,589 67,693,137 1931 Bales Pounds 195,441 23,409,170 35,872 4,488,271 18,629 1,490,320 309,616 46,442,433 28,686 4,876,628 Total 598,265 82,152,910 588,244 80,706,822 HAPPINESS CANDY STORES Happiness Candy Stores reports net loss for 1931 of $103,264 after expenses, depreciation, amortization, etc., against net loss of $564,278 in 1930. ^^^^^^^S^^^^^^^^^^^^^ HSRSJRSKSBSHEIBSSS Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. ltl«v1^«v1r)«v1tl«vv«(1r)«^t7sv1t>8v1r)«v1r)«v1r^ FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATINO CIGAR FLAVORS Make tobacco ni«Uow and amooth in charactct and impart a most palatable flavor FLAVORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BiCTUN. AROIIATIZEB. BOX FLAVORS. PASTE SWEETENERS FRIES & BRO., 92 Reade Street, New York NEW BISMARCK HOTEL, CHICAGO, USES CIGARETTES IN PUBLICITY CAMPAIGN POSSIBLE source for sales of cigarettes has been developed through a publicity campaign of the New Bismarck Hotel, Chicago, under the direction of Otto K. Eitel, general manager of the hotel and leading figure in the country's hotel field. The cigarettes, bearing the name Bismarck, are boxed in a rich appearing carton containing 20 cigar- ettes with or without cork tips. The design on the cover is a **b" with a smoke ring encircling the stem of the letter. The colors are blue and gray. The hotel handles the cigarettes exclusively and it is felt that the widespread use of the cigarettes by the guests will add greatly to making the hotel better known not only locally but throughout the country as well. In fact the idea is to make a promotional cam- paign self-supporting by this means. From the experience of the hotel with the guest trade, Mr. Eitel reports that the average guest is in- terested in displaying a box which is quite impressive as well as enjoying the fine qualities of an excellent smoke. The cigarettes are on display on a landing of the grand staircase leading to the lobby and main dining room. Along with them is a box of cigars which also bear the name Bismarck and have been featured by the hotel for some time. 190,976,732 + 2,934,431 MARCH 15, 1932 18 52nd year Say You Saw It in The Tobacco World March 1, 1932 Tobacco Merchants' Association recent tobacco losses in porto moo Registration Bureau, 341 Madison Ave. NEW YORK CITY Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Eegistration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowance of U will be made to members of the Tobacco Met- chants Association on each registration. Note B— If A report on a search of a title necessitates the reporting of more than ten (10) titles, but less than twenty one (21), an additional charge of Ont Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty ,^',J}-,' t"* '"' **>*" thirty-op- (31), an additional charge of Two Dollars (fZ.OO) will be made and so an aaditional charge of One Dollar ($100) will be made for every ten (lOj additional titles necessarily reported. REGISTRATIONS KENWORTHY:— 45,984. For briar pipes. February 10, 1932. H. E. Shaw Co., Worcester, Mass. (By consent of John Middleton, Philadelphia, Pa.) ROLLME:— 45,985. For all tobacco products. February 13, 1932. Rollme Tobacco Co., New York, N. Y. TRANSFERS LA LAMPARA:— 25,737 (Tobacco Leaf). For cigars. Registered July 1, 1903, by Cole Lithe. Co., Chicago, 111. Transferred to Manuel I'ernandez & Bro., and re-transferred to Marcelino Perez & Company, Tampa, Fla., February 4, 1932. CALESA: — 37,068 (United Registration Bureau). For cigars, ciga- rettes and tobacco. Registered November 24, 1911, bv George Schlegel, New York, N. Y. Transferred to Manuel Fernandez, Jacksonville, Ha., and re-transferred to Marcelino Perez & Co., Tampa, Fla., February 4, 1932. LA CALESA: — 37,067 (U. R. B.). For cigars, cigarettes and to- bacco. Registered November 24, 1911, by George Schlegel, New \ork, N. \. Transferred to Manuel Fernandez, Jacksonville, Fla., and re-transferred to Marcelino Perez & Co., Tampa, Fla.. Febru- ary 4, 1932. AL A. VENTANA:— 25,031 (Tobacco World). For cigars, ciga- rettes, cheroots, stogies, chewing and smoking tobacco. Registered October 15, 1912, by Manuel Fernandez, Ybor City, Tampa, Fla. Transferred to Marcelino Perez & Company, Tampa, Fla., Feb- ruary 4, 1932. TARVIA:— 40,319 (United Registration Bureau). For all tobacco products Registered July 25, 1917, by Geo. Schlegel, New York, N. \ Transferred to Manuel Fernandez, Chicago, 111., and re- transferred to Marcelino Perez & Company, Tampa, Fla.. Febru- ary 4, 1932. FLOR DE TARVIA:— 40,377 (U. R. B.) For all tobacco products. Registered beptember 11, 1917, by George Schlegel, New York, W. Y Iransferred to Manuel Fernandez, Chicago, 111., and re- transferred to Marcelino Perez & Company, Tampa, Fla., Febru- ary 4, 1932. DRUG, INCORPORATED, EARNS $19,433,237 RUG, INCORPORATED, which controls Louis K. LigT in Til STin I I. NKW ^<1HK '§**— "^^*»— ..^— .. ■■ ..— )i^^ "BEST OF THE BEST" Manufactured hf A. SANTAELLA & CO. Office, 1181 Broadway. New York City FACTORIES Tampa and Kep West. Florida ■a— gB I II ill 11 I ill iiiiiiiiiiiiiiiiiiiiiiiiiiiifni PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. •^ 7 WOODEN BOXES SncreasecL ute ^S^/e of WHEN BUYING CIGARS Remember that Regardless of Price THE BEST CIGARS ARE PACKED IN WOODEN BOXES KlNUtlMi|ti^J|ii^ Number 6 EstabUshed 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins. President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street. Philadelphia. Pa. Entered as second-class mail matter. December 22. 1909. at the Post Office. Philadelphia. Pa., under the Act of March 3. 1879. $2.00 a Year PHILADELPHIA, MARCH 15, 1932 Foreign $3.50 >!i>.AA ;,.i^i5«5^i;>^^^^i>^>4^3^<^^^ower. The buver is in the saddle today and is using his powor for all it is worth— not all buyers, of course, but the majority. There is much agitation at present about the re- peal of anti-trust laws aimed at ruthless selling. But no protection has ever been offered to industry against ruthless buying. The buyer claims no one can be made to sell his ])roduct below cost if he doesn't want to do it The seller claims that unless he shares in present business, dictated by the buyer, he cannot continue to operate or be in business when better conditions come back. Selling, not buying, should rule industry. With- out sales, buving is unnecessary. The capacity ot mar- kets to absorb products should be the starting point ot all planning. Executives and salesmen should discuss with ail customer purchasing agents and executives the grave responsibilitv thev assume by their buying policy and the inevitaV>le results which will come to them person- ally, their companies, their stockholders and business ii general. , ,, , , .i i Their attention should be called to the men who have been thrown out of work, the salaries that have been cut, the companies who are on the verge ot bank- ruptcv, because of profitless buying which auto- maticallv kills the ability of the imblic to satisfy its wants. These wants are piling up and only need em- ployment and income to l)e released in a tidal wave ot orders. . ^ ^ ,, . a We must urge all executives to end this orgy ot profitless buving and take out of the hands of their purchasing departments the determination ot their business policy from one of 'M)eat them down" to one (CofUinued on page 15) 52nd year THE TOBACCO WORLD March 15, 1932 March 15, 1932 Say You Saw It in The Tobacco World 52nd year IV AR KREUGER A SUICIDE VAll KREUGER, head of the Swedish Match Company, and known throughout the world as the ''match king", was found dead in his apartment in Paris on Saturday, March 12th, with a bullet through his heart. Police said he had killed himself. Notes which he left for his friends and associates stated that he was tired of life and the financial difficulties in which he had found himself tor some months. • -r. • Although news of his death was known in Paris before the opening of the New York Stock Exchange in this country, the news was withheld until after the closing of the market here and it is said more than 165,000 shares of Kreuger & Toll stock were dumped upon the New York market. Mr. Kreuger had loaned millions of dollars to governments throughout the world at a substantial rate of interest and in addition received a monopoly on the match business in those countries which also netted his business interests a substantial profit. It is said that his interest return from these loans was $25,000,000 a vear, while interest payments owed by his firm were only $8,000,000. An interesting fact about Mr. Kreuger was that while he was head of the largest match manufactur- ing business in the world, he himself, used an auto- matic cigarette lighter invented by a one-armed war veteran. SHERMAN COMPANY CONSOLIDATES Announcement has been made that the George C. Sherman Company, Incorporated, advertising agency, New York City, has been consolidated with that of Reimers & Whitehill, Incorporated, at 295 Madison Avenue, and will in the future operate under the name of Reimers, Whitehill & Sherman, Incorporated. Mr. Sherman was formerly president of the Uni- versal Tobacco Machine Company, which was merged with the International Cigar Machinery Company about a year ago. Mr. Sherman is chairman of the board of the new advertising agency; Carl Reimers is president and treasurer of the company, and A. E. Whitehill, is vice- president. TAMPA FEBRUARY PRODUCTION LESS Tampa cigar production for the month of Febru- ary was 28,037,538 cigars, which is about 2,000,000 less than w^as manufactured in that city in February, 1931. However, tliore was an unusual increase in the higher grades. Class C production w^as approximately 1,000,000 more cigars tlian were produced in Tampa in January, wliile Class D showed an increase of approxi- mately 700,000 over January, and Class A a decrease of 500,000. Production bv classes was as follows: Class A— 13,606,000 ; Class B— 476,000; Class C— 10,800,000; Class D— 3,08-1,000, and Class E— 71,000. R. J. REYNOLDS DIVIDEND Directors of tlie R. J. Reynolds Tobacco Company have declared the regular quarterly dividends of seventy-five cents a share on the common and common B stocks of the company, payable April 1st to stock- holders of record March 18th. CAPPER-KELLY BILL IN SENATE ilHE American Fair Trade Association advises that without a division, without amendment, without recommendation and without waiting for printing of hearings, the Capper-Kelly Fair Trade Bill (S. 97) was ordered reported to the Senate by the Committee at an executive session on March 5. No vote was taken as to favorable or unfavorable report of the measure, the unanimous decision being made to submit it to the Senate with a summary of the testimony for and against it at the series of hearings concluded on March 2, as indicated in the enclosed clip sheet. The prompt action of the Committee is a great vic- tory which unquestionably reflects the country-wide demand for relief from present predatory price-cutting conditions and confusion in the law to which the Courts and Federal Trade Commission have repeatedly called the attention of the Congress. . With the bill on the Senate calendar, every triend of the Capper-Kelly Bill should make his interest and influence constantly felt in every possible way until favorable Senate action is secured. AMERICAN BOX SUPPLY OFFICES MOVED Effective April 1, the offices of the American Box Supply Company and the Detroit offices of the Auto- kraft Box Corporation, formerly located at 607 Shelby Street, Detroit, will be moved to 1427 Monroe Avenue, Detroit, where the branch factory of the Autokraft Box Corporation is located. The offices at 1427 Monroe Street are being reno- vated and improved at the present time, and the move will probably be completed on or about April 1. METROPOLITAN LOSES 6,000,000 CIGARETTES Burglars who forced an entrance through a sky- light of the warehouse of the Metropolitan Tobacco Company, distributors, in Yonkers, N. Y., last Tues- day, opened the shipping room door and escaped with approximately 6,000,000 cigarettes and a quantity of razor blades and playing cards f ^(.(^(xn The cigarettes were packed m 560 cases ot 1U,UUU cigarettes each, and according to officers of the Metro- politan were value at about $25,000. TOBACCO PRODUCTS CERTIFICATES READY The Tobacco Products Corporation announced on March 4th that the 6V2 per cent, collateral trust deben- tures of Tobacco Products of New Jersey and the stock certificates of Tobacco Products of Delaware are now available for delivery. These securities are being issued m connection with the reorganization of Tobacco Products of Vir- ginia. The -communication stated that holders of cer- tificates of deposit should turn them in promptly m order to receive the securities to which they are en- titled. ERWIN, WASEY TO DIRECT "SANTA FE** A. Sensenbrenner Sons, Los Angeles, manufac- turers of ''Santa Fe" cigars, has appointed Erwm, Wasey & Company, Los Angeles office, to direct its advertising. . Plans are being made for an aggressive advertis- ing and merchandising campaign in various cities w^est of the Rockies. ee Y. es sir. Camels are always FrESH ! 99 l^HEN you call for Camels you get fresh cigarettes — cigarettes that are made fresh, then kept fresh. No matter where you chance to be — on a railway diner, at a crossroads store, on the desert or by the sea, the Camel Humidor Pack keeps germs, dirt and weather out and holds the pre- cious, natural moisture in. Awaiting your enjoyment is all the orig- inal delight of choice Turkish and mild, sun -ripened Domestic tobaccos expertly blended into the coolest, mildest cigarette you ever touched match to. With each puff you get the pure, unal- loyed fragrance and joy of rare tobaccos, unimpaired by excessive heat. For Camels are never parched or toasted. The Reynolds method of scientifically applying heat guar- antees against that. If you haven't tried Camels lately, switch over to this brand for just one day. After you've known their mildness; after you've com- pared their smooth, throat- easy manners with the harsh, hot, stale smoke of parched- dry cigarettes, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY Winston-Salem, N. C. 'Don't nmope the moisture - proof wrapping from your package of Camtls after you open it. The Camel Humidor Pack is protection against odors, dust and germs. In offices and homes, even in the dry atmosphere of artificial heat, the Camel Humidor Pack can be depended upon to deliver fresh Camels every time Camels Made FRESH - ir<>|»# FRESH 'Are you Listen in'?" R. J. REYNOLDS TOBACCO COMPANY'S COAST- TO -COAST RADIO PROGRAMS Prince Albert Quarter Hou» Alice Joy, "Old Hunch, "and Prince Albert Orchestra, every night except Sunday. National Broadcasting Com- pany Red Network Camel Quarter Hour Morton Downey, Tony Wons. and Camel Orchestra, direction Jacques Renard, every night except Sunday, Columbia Broadcasting System See radio page of local newspaper for time © 1932, R. J. Reynolds Tobacco Company 52nd vear THE TOBACCO WORLD March 15, 1932 BAYUK SALES INCREASING IN CHICAGO xVYUK'8 ei^airs are coiitiniun^^ to show in- ' creased popuhxrity and increased demand in hica<,^o, where tliey are being distrilmted by Zolhi Brothers, whose organrzation is being assisted bv J. A. Brown, Baynk territorial man. McMahan-Leil) ('ompany, Anderson, Ind are keep- in^ up the sale of Bayuk cigars throughout the Andei- son Ind., territory, with which they are entrusted. ' Recent visito\4 at Bayuk l^hihidelplua headquar- ters, inchide (Hyde L. Davis, of the Old Dommion To- bacco (^ompauN^ of Norfolk, Va.; J. A. Kaiiffman, ot W H Strause & (^ompanv, Johnstown and Aitoona, Pa • J. P. Given, Bayuk Buffalo territorial man, and GeoVireBranzell, Virginia territorial mjin. The Clarksburg (\andy Company, Clarksburg V a., has taken on Bayuk 's cigars for distribution in their territorv, and the Monongahela Candy Company, Fan- mount, W. Va., has also been entrusted ^vith the dis- tribution and sale of Bayuk 's quality cigars tor then distr'ct. These accounts will be under the supervision of H. Jacobs, Bavuk's territorial man. NEW "PANCHO ARANGO" SIZE Schwab, Davis y Ca., Tampa manufacturers of the »'Pancho Arango" brand, are placing a new size ot tins brand on the market which has all the appearance ot Tjroviiiii: a big seller. ^ . -^i, , ,. Tire new size is designated as the *' Empire State, and is Spanisli hand made and all long, clear Havana filler, and a wonderfully mild and full flavored smoke, retailing at ten cents. .,,,,. t . -i ^ John Wagner & Sons are Philadelphia distributors for the brand and they expect to receive their farst shipment within the next few days. NEW BURNS PANATELA ARRIVES The new panatela de luxe size of the "Robert Burns" brand, product of the General Cigar Company, has made its appearance on the Philadelphia market, and is in line with the progressive policies ot the ben- eral Cigar Companv in seeking to give the consumer more for his monev, and the best quality possible. Distribution of the new size in this territory is under the supervision of C. A. Harris, manager of the General Cigar Company's local sales force, and it looks like a winner. TALLY HO" AMBER TIPS ARRIVE HE P. LORHXARD COMPANY have obtained additional distribution on their "Tally Ho" am])er-tipped cgarettes and they are now well established in Philadelphia, Baltimore, Wash- ington, Boston and Chicago. Other markets will be covered just as rapidly as production facilities Avill permit. The Amber Tip "Tallv Ho" has met with grat.fy- ing success in the territories where it has been placed and the results have far exceeded the expectations ot the P. Lorillard Company. TRADE JOTTINGS Pancho Arango, of Arango y Arango, Tampa, is expected to visit Philadelphia this week. Mr. Heineman, representing the ''Perfecto Garcia" factory was a visitor at Yahn & McDonnell head- quarters last week. The J. and D. Cigar Company, Inc., 500 Market Street, has been sued by receivers of the Louis King Cigar Companv, to recover $120 for merchandise. Gulio Calenzi is operating a small manufacturing establishment at 1021 Kimble Street, where he is manu- facturing the ''Hot Tip" cigar. Jack ( V)fling has joined the sales force of Grabosky BroHiers, Incorporated, manufacturers of the "Royal- ist" brand, and is working in Texas as factory repre- sentative on the brand with good results. Morris Zifferblatt, accompanied by IMrs. Ziffer- blatt arrived in New York on Friday after a visit to Havana, where lie spent some time inspecting Havana tobaccos for the "Habanello" Immd. Yahn & ^IcDonnell, "Optimo" distributors m this section, are receiving some splendid window panel dis- plavs here on that brand. The "Optimo" brand has maintained its popularity far beyond other brands dur- ing the current troublous times. March 15, 1932 Say You Saw It in The Tobacco World 52nd year ^' \ > ■; ■- 1^ -^ ^ -r~~T ji i: erztiJV' L , L Ml dj^CKY) m ^0' ^ ^z P^ ^■■»#¥vA ^o^jUuyi^ r:^ Copr., 1932, The American Tobacco Co. the extra protection to my throat MIND IF I COLLYER "JUNE"? June gave Park Avenue something to boast about . . . she's one of Nev/ York's "400." When June middle-aisled it, dozens of eligi- ble bachelors went back into cir- culation. Did you see her in WARNER'S "ALEXANDER HAMIL- TON"? For 4 years she has smoked LUCKIES. That nice state- ment of hers was not given for money. "Thanks, June Collyer." "It's the extra things I get from Luckies that make me so enthusiastic. The extra protection to my throat, the extra fine flavor of Lucky Strike's choice tobaccos. And the extra convenience of the little tab which opens the Lucky r\^ jULx/i^ Cellophane wrapper so easily.' X^^^^^^^Q "irs tx>asted Your Throot Protection -ogo Inst Irritation -against cough 7;:rM:i:^::^Pri,of C..l.pl.— K-^P. a,at -Toa.**-" Flavor ever Frejh I 8 52nd year THE TOBACCO WORLD March 15, 1932 March 15, 1932 THE TOBACCO WORLD 52nd year TRADE JOTTINGS Harry Valenchik, well known in the leaf tobacco and cigar manufacturing trade, has become associated with Ben Kane, cigar manufacturer of South Second Street, and has established a nice business on his Ji.1 Venco" brand. Louis Alexander, formerly associated with the GeorL^e Zifferblatt Company, is operating a cigar stand at 1301 Sansom Street, and manufacturing cigars m the rear of the store. The cigars are being packed m an attractive boite nature box. Bernard Myers, Washington and Baltimore repre- sentative of Geo. Zifferblatt & Company, dropped m at Wlquarters last week returning to his tern ory after a brief trip north. He reports -Habanello" business in his territory showing a nice demand. *' Wagner No. 3," a high-grade smoking tobacco manufactured especially for John Wagner & Sons Dock Street, is meeting with a splendid demand and sales are increasing. Shipments of this brand are being made regularly as far as the Pacific coast. Ben Lumlcv, ''Garcia & Vega" and ''Carl Up- mann" representative, has just returned from a trip through eastern Pennsylvania and New \ork btate and reports a nice volume of business booked on these brands. Mr. Thompson, manager of the Bellevue-Stratford Hotel cigar stand, is featuring a wonderful display ot imported cigars and cigarettes, with good results. Business at the Bellevue-Stratford stand is moving steadily ahead in spite of present economic conditions. Ben. Hoffman, of the N. Snellenburg & Company cigar department, is featuring an attractive window displav of "Garcia & Vega" cigars, which is attracting much favorable comment and producing sales on this quality brand. Last week Grabosky Brothers, Incorporated, launched an advertising campaign in Philadelphia and Baltimore newspapers on the "Royalist" cigar, and sales are taking an upward swing as a result. As dis- tribution on this brand expands, the advertising cam- paign may also be extended. The Louis King Cigar Company, formerly located at 235 South Third Street, is now operating at 825 Walnut Street, under the supervision of Sam Pasquale, and producing their "King Perfecto" and "Havana Shield" brands. Messrs. Steeley and Knox are operating the busi- ness as receivers. A. Berkowitz and Mr. Dixon, of the Christian Peper Tobacco Company, St. Louis, Mo., were recent visitors in town and report good business on their "Listerine" cigarettes, "Golden State" smoking to- bacco, made especially for those who roll their own, and their other high-grade brands of smoking and chewing tobaccos. PHIL. M. PHULOFAX SAYS SALESMEN MUST START THE BALL ROLLING T'S UP to the salesmen of America to start the ball rolling toward better times," announced Phil. M. Phulofax, D.B.I., well known writer on cigar retailing, who is associated with Bayuk Cigars, Inc., of Philadelphia. "It's an uphill shove, but you'll be doing something for your country just as you did out there at Chateau Thierry. ' ' Do you realize what a big responsibility we have. We have goods, we have ships and cars to handle them, and we have millions of willing hands. It's up to us salesmen to put tliem all in motion. We're the fellows who can get things started. "Every time you make a sale you give a well placed upper-cut to*^this slugger, Depression. He 's had most of us shaking in our boots, but if we hammer away we'll have him down on his back. ' ' Every time you sell a cigar you boost the farmer who raises the tobacco, the manufacturer who makes his farming machinery, the men he hires to cultivate and harvest. "Every time you sell a cigar you turn the wheels of the locomotive*^ that transports tobacco from the fields to the warehouse and then to the factory. "Every time you sell a cigar you keep the ma- chines moving in the factory and the workers punching the clock. You supply jobs for the fellows who make the bands, the labels and the boxes, for the clerks and executives. "So when you sell cigars you put money into pockets besides your own; you're giving another fellow a job as surelv as if you hired him yourself. It's the sa'leman's day. We can put it across and we're going to." CONGRESS CIGAR DIVIDEND Directors of the Congress Cigar Company have de- clafed the regular quarterly dividend of twenty-five cents a share, payable March 30th to stockholders of record March 14th. The "Bold" invincible size, which has been re- tailing at seven cents— three for twenty, has been re- duced to retail at five cents each, and according to re- ports, the factory is receiving a nice volume of busi- ness on this size at the new price, which would seem to indicate that the smoker knows a bargain when he sees one, and also that he has the money to spend if he can be convinced that he is getting his money's worth. T. A. Allely, who was formerly district representa- tive for the Union Tobacco Company, has joined the force of the Christian Peper Tobacco Company, St. Louis, and will represent them in this territory, effective March 14th, on their "Listerine" cigarettes and other brands. Yahn & McDonnell are "Listerine" distributors for this territory, and they report a steadily increasing demand on this brand. A. N. Davis, former superintendent of the Louis King Cigar Company factory branch at 235 South Third Street, has opened a retail stand at 8 North Thirteenth Street, in the Colonial Bank Building, under the firm name of the King David Cigar Manufacturing Company. Cigars are manufactured in the rear of the store and the customer may order any size and shape cigar he desires and it will be made to his order. mericd's best pipe tobacco! Packed in a handy pocket pouch of heavy foiL Keeps the tobacco belter and makes the price lower. Hence . . . 10c HALF-POUND VACUUM AIR-TIGHT TIN YOU CAN DEPEND ON A LIGGETT & MYERS PRODUCT ONE-POUND HUMIDOR 10 52nd vear THE TOBACCO WORLD March 15, 1932 March 15, 1932 Say You Saw It in The Tobacco World 52nd year 11 I News From Congress _ -AND Fed El Departments 0 ADDITION A L taxes will be imposed upon tobacco products under tlie new revenue bill introduced in the House of Kepresentatiyes :Marcli 7, it bein.^: ])rovided that the manufac- turers' excise tax, adopted as a su])stitute for the va- rious individual taxes, includinjj: an increase of one- sixth in the present I'ates on tobacco and products other than ci^^ars, shall not apply to "any article with respect to which an internal-revenue tax is imposed under ex- isting law." Manufacturers of tobacco products, however, will be taxed with respect to non-exempt materials used in their production, such as containers, electricity and paper. While sales l)y manufacturers or producers of products to other maiiufacturers for further manufac- turing are exem])t from tax, which is designed only to apply to the com])k'ted article, this exemption, it is provided by the bill, (k)es not extend to such sales to manufacturers of exem])t articles. The tax, accordingly, will hit manufacturers ot cigar boxes, cigarette cai'tons and many other products used in the manufacture of tobacco commodities. It applies to all manufacturers and ])roducers except those having sales of less than Ji;2(),()(K> a year, and also ap- plies to importers, the tax being levied not only upon domestic production Imt upon all im])orts of taxalde articles, in the latter event the tax being computed upon the dutial)le value plus any tariff duty which may be imposed. Manufacturers and importers of tax- able articles will l>e ixMiuired to secure annual licenses at a cost of two dollars a year, but manufacturers and importers of exem])t aiticles will not require licensing. The measure ])rovides that on sales contracts en- tered into prior to March 1, 19:52, the provisions of which do not ])ermit the addition of a tax to the amount to be paid, the vendee shall be liable for the tax which, however, is to b<' collected and returned by the vendor. The sales tax provisions will go into effect thirty days after enactment of the bill and will expire June o(), 1934. ruder the bill, the normal individnal income tax rates are increased from 1V-: to 2 per cent, on the tirst $4000 of net ir.conie from :\ to 4 jx'r cent, on the next $4000 and from 5 to 0 per cent, thereafter. Sur- taxes begin at $1(M>;1()(),()00, against the ])iesent 20 per cent, maxinnim. Kxeinptions are rednced from $1500 to $1000 for sinu'le ])eisons and from $:)5')0 to $2500 for heads of families, and the allowance for earned income is reduced from 25 to 12li.> ])er cent. The corporation tax rate is increased from 12 to 13 per cent, and the ])i'esent allowable credit of $3000 for corporations with net incomes of $25,000 or less is re- duced to $2000 for coii)oralions with net incomes not exceeding $10,000. The changes in the income tax provisions will be effective next vear against 1932 income. From our Wash)ngton Bureau 622Alb£e ButipiNG The bill also carries taxes upon long-distance tele- phone calls and telegraph, cable and radio messages of live cents where the charge is between thirty and fifty cents and ten cents where the charge exceeds fifty cen'ts, effective iifteen days after enactment of the measure. Ct3 C^ Cj3 Change in Postal Rates and Laws Legislation revising fees charged by the Post Ofhce Department for money orders, insurance, coUect- on-deliverv service and registry, and making it a crim- inal offense to deposit circulars, statements of account, etc., in letter boxes at houses and ai)artments without pavment of postage, has been passed by the House of Kepresentatiyes and now goes to the Senate for action. The measures would become effective July 1, next, and are expected to add many million dollars to the revenue of the ])ostal service. Fees for the issuance of domestic monev orders would run from six cents for orders not exceeding $2.50 to twenty-two cents for orders between $80 and $100, an increase in the rate in all brackets below $00. The maximum for which insurance could be pro- vided is increased from $100 to $200. Fees for insur- ance service on mail valued at between $5 and $100 would be increased, with higher fees on more valuable mail, the maximum being thirty-five cents for $200 insurance. In addition, a fee of three cents will be charged for a return receipt if retpiested at time of mailing and five cents if recinested thereafter, and, upon pavment of a fee of twenty cents, the sender may secure a receipt showing to whom and when and the address where tlie parcel was delivered. Fees for collect-on-delivery service would be mate- rially increased, the maximum being forty-five cents on collections not exceeding $200. Hegistrat'on to a maximum of $10,000 is provided, it being sti])ulated, however, that registration in excess of $1000 will be granted only when such mail is not insured with anv commeicial or other insurance agency Fees for indemnity not exceeding $700 are increased, the present rates are retained for indemnities between $700 and $1000, additional fees are provided for in- demnities Ix'tween $1000 and $2000 on a flat basis and between $2000 and $10,000 on a zone basis, the amount charged de])ending upon the distance the registered matter is canied. . . With a view to curbing the practice of depositing statements of account, (circulars, sales bills, etc., in let- ter boxes or other receptacles established for the re- ceipt or deliverv of mail, without ])ayment of postage, such action is made a ci-iminal offense punishable by a fine not exceeding $300. This provision would apply only to cities. It is estimated that the postal service loses more than $4,000,000 a year through this practice. eyi/ nnounctng GUMMED CIGARETTE PAPER BOOK MR. DEALER — TARGET Gummed Papers have been in demand since we introduced this type of paper in our fa- mous TARGET Cigarette Tobacco. NOW— you can obtain the genuine TARGET Gummed Cigarette Papers— as packed with TARGET Tobacco— in handy books of 100 papers, to retail at 5 cents. Gummed, free-burning papers are being demanded by all roll-your- own smokers. Be the first to have TARGET Gummed Papers. Order from your jobber today, BROWN 8b WILLIAMSON TOBACCO CORP. I i SirWaFterRaleifih Smoking Tobacco, Raleigh Cigarettes and Golden Grain Smoking Tobacco are others in the group of well known B &> W products. ©i9ji,B.& W.T.C. 12 52nd year THE TOBACCO WORLD March 15, 1932 March 15, 1932 Say You Sate It in The Tobacco World 52nd year 13 I f m THE NEW TAX MEASURE HE Ways and Means Committee, after a most lahorioiis task lasting many weeks, has finally completed the new tax measure, which includes a manufacturers' sales tax of 2.25 per cent. The measure was introduced in the House last week as a non-partisan bill, with the unqualified approval of the Treasury Department, so that a speedy passage by the House seems to be almost certain. In a public statement issued by Secretary Mdls, he said that ''although the measure differs materially from the original recommendations of the Treasury, it had the approval of the Treasury, and would re- ceive its hearty support". Cigar, Cigarette and Tobacco Taxes Remain Unchanged With the war emergency tax rates on cigarettes and tobaccos still in force, the Ways and Means Com- mittee was apparently unanimous in the opinion that no further emergency tax should be imposed on top of the still continued\var emergency imposts on ciga- rettes and tobaccos. . And so too, the Committee has seemingly consid- ered it unjust and unwise to impose the 2.25 per cent, sales tax on drears, cigarettes or any manufactured tobaccos alreadv subject to heavy internal revenue taxes, and accordingly, all tobacco products have been exempted from the sales tax. Some of the Major New Tax Provisions The Sales Tax—Ai^ indicated in our previous bul- letins, adequate provisions are contained in the bill against pvramiding the tax, fashioned largely after tlie Canadian Tax Bill which, as briefly described by Professor Adams, may be stated that "pyramiding of the tax is eliminated by a device of licenses and cer- tificates. If one licensed taxpayer buys from another licensed taxpaver, he notes his certificate number on liis order, and* this is noted on the sales invoice, and the sale is exemi)t. When the last licensed taxpayer sells to the unlicensed purchaser, the tax is collected. Only one tax is thus imposed on the process of manu- fact lire. ' ' The sales tax is to become effective 30 days after the enactment of the law while all special excise taxes are to become effective fifteen days thereafter. All of the new excise taxes, as well as the sales tax, are to terminate on June 30, 1934. It is to be noted that the new income taxes, gift and estate taxes are to be permanent until changed by Congress. On goods taxal)le under the new law sold and de- livered under contracts made prior to March 1, 1932, the purchaser will be required to pay the new tax. It is to be noted that electrical energy is included in tlie sales tax, Imt deductions of this tax will be per- mitted l)y manufacturers using electrical energy for manufacturing purposes from the taxes paid on their manufactured products. Telegraph, Telephone ami Bad in Messages are taxed on* the basis of 5 cents for messages costing be- tween :>1 and 49 cents, and 10 cents for all above that figure. Stoch Transfer Taxes are increased from two to four cents, with a special provision that siich tax shall also apply to stock loaned for short sales. Admission Taxes — All admissions to amusements costing twenty-five cents or more, are taxed 10 per cent. The present admission tax is levied only on admissions costing above $3. hn ported OUs — Imported gasoline, oil and crude oil are taxed at the rate of 1 cent per gallon. Income Taxes Corporations — The corporation income tax rate would be increased from 12 per cent., as at present to 13 per cent.; exemptions are lowered to corpora- tions of $10,000 incomes, instead of $25,000, and credits are reduced from $3000 to $2000. Individuals — Normal taxes are increased from the present rate of V/2 per cent, to 2 per cent, on the first $4000 ; from 3 per cent, to 4 per cent, on the next $4000 ; and from 5 per cent to 6 per cent, on the remainder. The exemption for married persons is reduced from $3500 to $2500; and on single persons from $1500 to $1000. The earned income tax base is reduced from $20,- 000 to $12,000, and the rate deductible thereon is re- duced from 25 per cent, to 12yi. per cent. Surtax rates are also increased and would be graduated to begin at 1 per cent, on income between $10,000 and $12,000, with an additional 1 per cent, on each further $2000 up to $100,000, above which a flat rate of 40 per cent, is imposed. This compares with the present surtax rates be- ginning at 1 per cent, on net income between $10,000 and $14,000 and running up to a maximum of 20 per cent, on income in excess of $100,000. Capital Gains and Losses — The capital gain and loss provision is amended so as to limit stock and bond losses deductible from gross income to actual gains made in similar transactions in the same tax- able vear. Estate and Gift Taxes In the new measure, the rates of estate taxes are doubled, with a maximum rate provided of 40 per cent, on estates in excess of $10,000,000. Estates of $100,000 or under are exempt, the rate starting at 2 per cent, for the first $50,000 above that and progressing to the maximum. All of the proceeds would accrue to tlie Federal Treasury. Under the present estate tax system, credit up to 80 per cent, is allowed for inheritance levies paid to States that exact such an impost. Provision is made to take care of shrinkage in estates in periods of deflation, like the present, by al- lowing them to be valued eighteen months after death. A new gift tax is levied with a maximum rate of 30 per cent.^ for gifts exceeding $10,000,000. ^ Under the present law only gifts made in expec- tation of death are taxable. In the new bill all gifts of property or money exceeding $50,000 would be tax- able at rates graduated from IV2 per cent, to 30 per cent. Lubricating Oil to be Taxed Inasmuch as lubricating oil is not now taxed in any of the States, a special tax of 4 cents per gallon is imposed in the new bill. Opposition to Sales Tax Likely, But Passage Seems Assured The debate on the new tax measure will undoubt- edly develop considerable opposition to the sales tax, but according to close observers, the passage of such tax seems inevitable. After the bill is introduced, it will be formally re- ferred to the Committee on Ways and Means, who will probably report it back a day or two later with a report recommending its passage. It is expected that the final vote thereon in the House will be reached in a short time, when the bill wdll go to the Senate, where it will probably take sev- eral wrecks before final action. Through The Years Wooden Boxes Are A Mark Of Brand Prestige Many brands of established prestige have never been packed in anything but wooden boxes throughout the years since cigar smoking was first introduced in this country. Critical smokers always demand their favorite cigar in a wooden box. Experienced manufacturers know the value of the porosity of wood as a ripen- ing agent for their product. They are fully aware of the fact that it assures their customers of a mellow and satisfying smoke, when properly conditioned. The Research Department of AUTOKRAFT BOX CORPORATION has been untiring in its efforts to produce the highest grade package that will enhance tobacco values to the utmost point of satisfaction. After years of experiment AUTOKRAFT BOX CORPORATION is stUl of the opinion that wood— and only wood— is the natural container for cigars, and the most beneficial material from which to fabricate a package for such use. The new AUTOKRAFT wooden cigar box represents every new feature of cigar box manufacture— a package that meets every requirement of the cigar manu- facturer. Phi la., Fa. Hanover, Pa. Cincinnati, Ohio Kansas City, Mo. AUTOKRAFT LIMA A Natiorv Vnrk Pa CORPORATION ^^Z'^'/.l Ohio Detroit, Mich. Service Wheeling, W. Va. COLONEL G. E. WEBB DIES X February 2otli, Colonel Garland E. Webb, edi- tor of {he Southern Tobacco Journal, published in Winston-Salem, N. C, for more than thirty years, died suddenly at the home of his son in Charlotte, N. C. . , , . , Colonel Webb was probal)ly one of the best known tobacco men in the South, and at the time of his death was secretary of the Winston-Salem Tobacco Board ot Trade and supervisor of sales. Tt was a coincidence that he passed away on the day of the closing of the to- bacco market in his city. ^ Colonel Webb started his career in Durham, N. C ., in 1874 when he became associated with the bite Gen- eral Julian S. Carr, who owned an interest in a tobacco ])lant there. In 1893 he moved to Winston-Salem and accepted a position with the late A. B. Gorrell, and five years later he established his own business along with W. P. Watts, of Reidsville, at the old Orinoco Warehouse. After 26 years of auctioneering in that warehouse lie went to Brown's warehouse, where he remained as tobacco auctioneer until last fall, when he became supervisor of sales. He is survived by his widow, two sons, two daughters and a sister, lie was seventy-eight years old. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH, Wheeling. W. Va President CHARLES J. EISENIvOHR, Philadelphia, Pa Ex-Pretident JULIUS LICHTENSTEIN, New York, N. Y Vice-President WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL, New York. N. Y Vice-President H H. SHELTON. Washington. D. C Vice-President WILLIAM T. REED. Richmond, Va Vice-President HARVEY L. HIRST. Philadelphia, Pa Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio ... President CHAS. B. WITTROCK, Cincinnati. Ohio Vice-President GEO. S. ENGEL. Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. \ND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer FABER, COE & GREGG DIVIDEND Faber, Coe & Gregg, importers and distributors of tobacco products, New York City, have declared a quarterly dividend of 50 cents a share on the no-par common stock, payable Alarch 1st to stockholders of record February 20th. The company paid semi-anniial distributions of* 50 cents in the previous year. NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN. Newark, N. J President ALBERT FRF-:EMAN, New York, N. Y First Vice-President ABE BROWN, 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEI N President SAMUEL WASSERMAN Vice-President 14 52nd year THE TOBACCO WORLD March 15, 1932 March 15, 1932 THE TOBACCO WORLD 52nd year 15 I I CHAINS AGAIN CUT CIGARETTE PRICES X .\L\R('ll :'.d the United Ci.Kar Stores and the Selnilte Ui^ar Stores in New York City re- duced the price on the popuhu" Inlands of cigar- ettes to two tor a (inarter, from two for twenty- seven cents. .1-1 14- The action f()lh)wed price cnttmo- by independent chains in various parts of the cumntry, principally L^-ocerv chains. The prices were lowered in I hiladel- phia ai)out two weeks previously, and later m certain parts of New En.t!:land due to competition. ^ The recurrence of i)rice cutting on cigarettes, m the opinion ol' interested sources, seriously threatens the profits of retail tohacco chains, from 40 to GO per cent of whose business is in cigarettes. Under current manufacturers' prices, the retailers pay approximately 12.08 a package (those who buy direct from the manu- facturer), and sales at 12V-i cents a package would vie d .. gross profit of only slightly more than three per cent wiiich virtuallv eliminates the possibility ot net proht. It was felt last vejir when the manutacturers ad- vanced the wholesale price to ^r().S5 a thousand cigar- ettes of the p.^mlar brands, it would make it impossible for 'retailers to sell at two j.ackages for a quarter. Meanwhile, however, there have been retail price cuts on ci<^arettes which formerly sold out ot the so-called 'M)opnlar brand" class. In addition, considorabe com- Dctition to popular brand cigarettes is said to have been oiven bv at least one brand which retails tor ten cents a nacka<'-e and bv the ^'roll ycmr own" movement. ^ In tobacco retailing recently, scores ot agenciet^ other than the tdd line retail tobacco chains have sin'ung up, and a substantial proportion of these sell a cut prices merely to accommodate customers or tor theo- retical advertising value. , . • 1 ^v The enhanced a]>peal of low prices m a penod ot business depression has left the retail tobacconist with- out much protection. REYNOLDS U3ING COTTON STATIONERY The K J. Kevnohls Tobacco (Vnnpany, whose policv is to 'Mive and let live," has announced that its stationerv is now being made of cotton cloth, m line with the south's efforts to increase the use ot cotton in all forms. , p The K J IJevnolds Tobacco ( ompaiiy manutac- ture the -(^amel" cigarettes, " Prince Albert'' smoking tobacco, and other popular brands of smoking and chewing to])accos which are known and sold all over the world, and are therefore large users of stationery, and also one of the largest manufacturing firms to *'go cotton" in this elTort to hell) the scmthern cotton growers. The cotton cloth stationery is used exactly like paper, and readily takes ink, typewriting and printing. EMPLOYMENT IN TOBACCO PLANTS GAINS The Department of Labor index shows employment in smoking tobacco factories in January was 92 per cent, of normal, as compared with 88.9 per cent, in De- cember, or a gain of ^>'i.' ]>er cent. (heater activity in the smoking and chewing and snutT industry, however, contrasted with a moderate di'cliiie in the enii>loyniciit in cigarette and cigar fac- tories. . /.Q - Cigar ami cigarette employment was shown at b».o per ceid. of normal in .January against 71.8 per cent, of normal in December. REYNOLDS STOCK APPRECIATES 1413% HE purchaser of R. J. Reynolds Tobacco Com- pany common stock at the high of $274 in 1913 paid a premium of 07 per cent, over the tan- gible asset value of $163.r)9 a share, for the good wilTof the company. While this may have seemed high, he got a bargain, for since then the assets have been increased from earnings until the original share would now have a book value of $1,622.33. The single share purchased eighteen years ago at ik274 has multiplied to ninety shares oi common B stock worth $3470 and ten shares of common stock worth $070, or a total of $4140. The increase in the value of investment in the eighteen years is 1413 per cent. Present lu-ice of the B stock is 140 per cent. over asset value. ^ooro Earnings in the eighteen vears rose trom $J,»bJ,- o07 in 1913 to $30,390,817 in 1931, the greatest earn- ings in the company's history. Cash on hand at the end of 1!)31 was more than twice all liabilities. The companv bouuht its own stock in the open market in 1929 and 1931, and it now owns about 400.000 shares or 4 per cent, of the outstanding issue, acquired at less than $3') a share. In all of the vears since the dissolution ot the American Tobacco* trust in 1911, wdien the Reynolds ToIkicco (V)mpanv became independently owned, no >)ermanent additions to the capital have been made other than through earnings. Preferred stock totaling $20,000,000 was sold to stockholders, and $15,000 000 was borrowed on 0 ])ei' cent notes. However, the notes were (piicklv repaid, and the preferred stock was sub- sequently retired with a premium of $4,000,000, or 20 per cent. The number of shares of the company has been increased one hundred fold. Where, at the close of 1913 there were outstanding 100,000 shares of com- mon stock of $100 par, now 1.000,000 shares of com- mon stock of $10 ])ar and 9,000,000 shares of common B stock have been distributed to stockholders in the form of stock dividends, capitalizing for the benefit of the stockholders the tremendous additions to the as- sets and earning i)ower of the company which took place in this eighteen-year period. At current ])rices K. J. Keynolds common B stock is selling for about 140 ])er cent, more than the net j.ssets a])plicable to the stock. Obviously, therefore, the price of the stock places a real and substantial \alue on the goodwill which the company has estab- lished in the past eighteen years. At approximately $38 a common B share and $07 a common share, or $380,000,000 for all the common and common B shares, thus goodwill value is appraised at slightly more than s;;200,000,000. ^^^^^ In eighteen vears Reynolds earned $352,180,749, or $3r)21 a share on the 100,000 common shares out- standing at the beginning of the period, or 1,186.5 per cent, on the 1913 market value. Of this total $222,581,- '\')0 or 5^2225 has been paid out in dividends. The re- mainder, as well as a])proximately $10,000,000 credit I'rom earnings of previous years, has been added to the assets owned by the common stockholders. — Wall Street Journal. P. LORILLARD DIVIDEND The P. Tjorillard Company has declared regular quarterly dividends of thirty cents a share on the com- mon stock, and $1.75 a share on the preferred stock. Both dividends are payable April 1 to stockholders of record March 15. INFLUENCES OF DESTRUCTIVE BUYING {Continued from Page 3) of ''live and let live." We are in a period where men must forget somewhat their own selfish viewpoint and do everything they can to help the general situation. By so doing they help themselves. Destructive Selling— Service Without a Profit Is a Menace Special Letter No. 79, on the subject of Destructive Buying, presented the thoughts of many steel foundry executives on current demoralizing conditions as con- tributed to by destructive buying. There is another factor equally important, namely Destructive Selling. One contributes to the other. It is a vicious circle. The senseless selling of castings below cost or at a price just to get the order is as great an evil and breeds sharp buying. Those who pursue such tactics are creating a condition that will soon con- sume themselves unless corrective measures are ap- plied. There is nothing new to be said about profitless sales, but much that can be repeated. The only answer to the problem lies in a greater recognition that service without profit is a menace. It consumes the natural resources of the country, it consumes the brain, the time, the health of our executives; it consumes the capital investments of many people, and it produces unemployment, want, bankruptcy, and a deeper de- pression. It is unfortunate we have no compulsory power by which we can outlaw profitless sales. This country was built upon freedom of action. It has prospered. It will continue to progress. Only insofar as business bases individual action on sound procedure w^ill business prosper. Our Government has created the Reconstruction Finance Corporation. It plans to liberalize the Fed- eral Reserve policy, make money freer and easier, in- still confidence in and make our banking system more secure. It is endeavoring to bring hoarded dollars into circulation. It is studying legislation to enable industries to work more closely together tor the com- mon good, but in all these things its action is limited for it cannot infringe upon the rights and privileges of the individuals. All these things should restore business confidence —they are helpful— they should bring renewed courage to every business man, but they \yill be of little or no avail unless the individual does his part. The responsibility is squarely on the shoulders of industry and sane selling at prices which insure a rea- sonable profit must return before we can progress or these governmental measures become fully effective. Now is the time for intelligent action. To delay is to court further disaster. Managements should consider the serious results of no-profit sales to themselves, their industry, and to general business recovery. It is better to suffer low^ production a little longer with recovery probable than to exterminate each other. Many people are affected, some of whom find them- selves earning less than enough to live upon. Tlu* vicious circle is complete and the good citizens rally to make contributions to relief funds to relieve misery that started with the selling and buying of goods ai no profit. "LUCKY STRIKE" PROGRAM TO FEATURE POLITICAL FORUM IPON the invitation of The American Tobacco Company, Senator Simeon D. Fess, chairman of the Repul)licaii National Committee, and Mr. Jouett Shouse, chairman of the Executive Com- mittee of the Democratic National Committee, have ac- cepted an offer to utilize a portion of the "Lucky Strike' 'radio hour on Tuesday and Thursday evenings, respectivelv, during the coming weeks, for the presenta- tion to the American people of the points of view^ of the two historic political parties. This national political forum began on Tuesday evening, March 1, at 10 P. ^L Eastern Standard Time over a national radio hookup. Senator Fess on behalt of the Republcian party made the opening address. On Thursday evening, March 3, :\rr. Shouse spoke on behalf of the Democratic party. It is contemplated that an outstanding leader ot each of the parties Avill speak on Tuesday and Thurs- dav of each succeeding week. Through this medium it is hoped that the American people will have, in advance of the meeting of the political conventions in June, an opportunity to listen to the voices of the principal leaders of both parties, and thus will acquire directly an understanding of their viewpoints concerning the various questions now^ be- fore the people. The attitude of The American Tobacco Company is, of course, entirelv non-partisan, and its relationship to the national forum thus planned is solely that oi placing a portimi of its "Lucky Strike" hour at the disposal of the respective National Committees of the tw^o great political parties. The naming of the speakers and the contents of the programs will be wholly under the management and control of the National Commit- tees of the respective parties. As a rule, the political parties in presidential years take time of their own over the radio, but this is ordinarilv done onlv after the nominations have been made and the presidential campaign is well under w^ay. This political forum suggested by The American To- bacco Companv and now to be utilized by the tw^o par- ties is in the nature of a pre-convention or pre-cam- paign discussion, designed not merely to tamiliarize the public with the problems which will come to a tocus in the framing of the platforms of the national parties, but also to make the public better acquainted with the personalities of the outstanding political figures ot the country NEW DIRECTORS FOR HELME ^Y L Clark aiia(it;rs\ir?svit?svif78vir)^r?iviri^r?svirr , 341 Madison Ave. Registration bureau, new york city Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), Search, (see Note B), Transfer, Duplicate Certificate, Note A-An .Uowance of %2 will be made to member! of the Tobacco Mer- chanti" Association on each registration. . _ ^« „„,- su;*!:rn tv :?de t'd ;o'';7rditfo^n^;i%Vrtf orsypur (,i.oo) ..n ^ S foT eUr* ten (10) additional title, necessarily reported. REGISTRATIONS GREAT SOUTHERN CIGAR :-45,994. For cigars. January 18. U)V? M Trcllfs & Conipanv, New Orleans, La. >r u i GUNSTON HALL:-45,996. For all tobacco products. March 1. 1932. George Schlegel. Inc.. Nevv York, N. Y CRANLYN:— 45,997. For all tobacco products. March 1, ivo- Cionrtre Schlccfl, Inc., New York, N. Y. nr u o CRIMSON COACH :-45,998. For all tobacco products^ March 2, 1932. Crimson Coach I'roducts Company Vt. Wayne, Ind. RONDAX:— 46,000. I' or all tobacco products February 9. 1932. Consolidated Litho. Corp., Brooklyn, X. Y. (By consent of G. H. P. Cigar Co., Inc., Philadelphia, Pa.) TRANSFERS YUM YUM:— 2,225 (Legal Protective Association). For cigars. Registered April 29, 1886, by George Schlegel New \ ork,N Y. Trfnsferred to Consolidated Litho. Corp.. Brooklyn. N. Y., Febru- AINTREE:^5,872 (T. M. A.). For all tobacco products. Regis- tered March 31. 1931, by George Schlegel, "c, New ^^oy^'^'Ts" Transferred to Magidson Cigar Co.. Milwaukee. Wis., tebruary 25, MANUEL FERNANDEZ:— 28,466 (Tobacco Leaf). Registered October 15, 1904, and 29,453 (U. S. Tobacco Journal), registered October 17. 1904. both for cigars, cigarettes, cheroots and tobacco, by American Litho. Co.. New York. N. Y. Transferred to George Schlegel, Inc.. New York, N. Y.. and re-transferred to Marcehno Perez & Company. Tampa. Fla., March 3, 1932. „ • . j OZARK TRAIL:— 31,041 (Tobacco World), hn cigars. Registered July 13, 1915, bv Stevens Cigar Co., Dixon, Mo. Transferred to L. T. Hehrens. Oaksidc, Mo.. February 9, 1932. ,^ ,, . EL PROVENZA:— 32.490 (U. S. Tobacco Journal). I'or cigars .ciga- rettes, cheroots and tobacco. Registered December 31. 1906, by Hevwood, Strasser & Voigt Litho. Co.. New York N. \ . Through mesne transfers acquired by Benjamin Kane, Philadelphia, la., teo- ruary 24. 1932. AMERICAN CIGAR DEAL FAVORED HK minority stockholders' committee of tlie American Cigar Company, in a communication issued yesterday, expresses approval of Amer- ican Tobacco Company's announced plan for purcliasing certain assets and leasing other assets of the cigar company. The plan, which is estimated to produce $10 per 'share on American Cigar common after payments of the regular $6 preferred dividends, meets with the committee's approval, the letter states and proxies of the minority stockholders are requested to vote in favor of the proposals at the special meeting to be held :March 15th. The committee consists of Robert Lehman, ot Leh- man Brothers; Maurice Newton, Hallgarten & Com- pany; John P. Fay, Farnum, Winter & Company, and Henry F. Wolff, counsel. Following the announcement of the proposed deal between tho American Tobacco Company and the American Cigar Company, the Curb Exchange re- corded a sale on February 25th of 5000 shares of Amer- ican Cigar Company stock at $150 a share. DUTCH MASTERS" CIGARS LAUNCH AD CAMPAIGNS N MID-FEBRUARY, ** Dutch Masters'^ Cigars started new advertising in a large number of cities. It is understood that some 150 news- papers and over twenty radio stations are be- ing used in various sections of the country. L. H. Hartman Company, New York agency han- dling this advertising, is not content with a single newspaper campaign, but is using three different cam- paigns simultaneously in different territories as a test of copy appeals. Likewise, separate radio programs are being employed. One of these is a series of amus- ing adventures, on the air, by the three stars, Phil Oilman and Victor Arden, famous piano team, and Frank Luther, ''the golden-voiced tenor." Announce- ment is made of a $2000 word contest. . ^ , „ One of the newspaper campaigns is m the torm ot a word contest, with $2000 in cash prizes for those mak- ing the most words out of the letters in ''Dutch Mas- ters." Contestants accompany their list with five bands from ' ' Dutch blasters ' ' cigars. In all three campaigns figures of Dutchmen appear and this ties up with the big cut-out displayed in retail stores. Consolidated Cigar Corporation has always backed its brands with strong advertising, but this early sea- son "Dutch blasters" drive is probably the biggest amount of publicity put behind a Class C cigar m any local territory in the United States. Increased sales are said to confirm the wisdom of this progressive policy. PALEY REGAINS CONTROL OF COLUMBIA An announcement last week by the Columbia Broadcasting System stated that a group headed by William Paley, president of the Columbia System, had repurchased the 50 per cent, of its stock formerly held by the Paramount-Publix Corporation. This step brings the ownership of the broadcast- ing system completely into the hands of Mr. Paley and his management, with no interests represented exter- nal to the company. • . , -.u .i, n Mr. Paley was formerly associated with the t^on- gress Cigar Company. NEW DIRECTORS FOR LORILLARD COMPANY At the meeting of stockhoders of the P. Lorillard Company, held on IMarch 8th, in Jersey City, N. J., minority stockhoders of the company, who blocked the adoption of a revised bonus plan through court action, won representation on the board of directors. The new directors are John J. DriscoU, William b. Gray, Jr., and Jacquelin P. Taylor. Other members of the board were re-elected. PENN TOBACCO ACCOUNT TO HOYT The Penn Tobacco Company, Wilkes-Barre, Pa., has appointed the Charles W. Hoyt Company, Inc., advertising agency, New York, to direct the advertis- ing of its Pocono tobacco division. This division is marketing a new tobacco which is sold in conjunction with the company's cigarette rolling machine. PHILLIP MORRIS STOCK ADMITTED Phillip Morris Consolidated, Inc., new stock of $10 par value, has been admitted to trading privileges on the New York Curb Exchange on a when, as and if issued basis. APRIL 1. 1932 siiiiiiitiiiiiiiiiiiniiimiiiimiiy ilAatti VOLUME 52 ^u,h-Mi b. i^^m:m:m of A^niulUJi if»f ■— - -■■ HH |»»^»— ^»1^— ««-^« ■« «■- 11 II iiM ■■ HI ■■ '" i Through The Years Wooden Boxes Are A Mark Of Brand Prestige Many brands of established prestige have never been packed in anything but wooden boxes throughout the years since cigar smoking was first introduced m this country. Critical smokers always demand their favorite cigar m a wooden box. Experienced manufacturers know the value of the porosity of wood as a ripen- inff agent for their product. They are fully aware of the fact that it assures their customers of a mellow and satisfying smoke, when properly conditioned. The Research Department of AUTOKRAFT BOX CORPORATION has been untiring in its efforts to produce the highest grade package that will enhance tobacco values to the utmost point of satisfaction. After years of experiment AUTOKRAFT BOX CORPORATION is still of the opinion that wood-and only wood-is the natural container for cigars, and the most beneficial material from which to fabricate a package for such use. The new AUTOKRAFT wooden cigar box represents every new feature of cigar box manufacture-a package that meets every requirement of the cigar manu- facturer. \ ^.\ ' Phi la., Pa. Hanover, Pa. Cincinnati, Ohio Kansas City, Mo. AUTOKRAFT BOX CORPORATION LIMA OHIO A NatioiaWidc Service York, Pa. Chicago, III. Detroit, Mich. Wheeling, W. Va. PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST., PHILA., PA. After all nothing satisfies like^ a good cigar I i I ? RETAILERS WANT WOODEN BOXES Retailers preier Wooden Boxes not only because they are natural salesmen but because they are also a natural ripening and mellowing agent for the cigars themselves. And they know that there is a valuable appeal to the smoker in the pleasant and aromatic fragrance imparted to cigars only by the Wooden Box. /when buying cigars I Remember that Regardless of Price I THE BEST CiCARS I ARE PAOUS l^i \ WOODEN BOXES y i^^^m^^ Volume 52 |iuiiivj;iiut|iMiiU*|ti;j|tuiituiiiyjiL^jti2^|iuiiiuiii^^^^^^^ THE TOBACCO WORLD Number 7 EstabUshed 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the Ist and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia. Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, APRIL 1, 1932 Foreign $3.50 4».— .M EDITORIAL COMMENT HE decline in cigar withdrawals in the montli of February was not unexpected, ))ut the total decrease between February, 1920 and Feb- ruary, 1932, something more than 24(),000,000, is serious, in view of the fact that Februaries are not peak months. Considering other industries our observation is tliat taken as a whole the cigar industry has done fairly well in the matter of profits. But the steady dwindling of cigar consumption must sooner or later vitally affect protits. There is a limit to which economies can be carried, in order to maintain earnings, without affect- ing the qualitv of the merchandise. We do not believe that the unhappy business con- dition entirelv explains the decrease in cigar consump- tion, and if the added cost of the transparent wrapper has been entirely offset by savings in other manufac- turing costs, it is obvious that such savings have re- sulted in a cheapening of supplies or materials, or both, somewhere along the line. The repeated answer to the question of the contin- ued use of the lucid covering (which the consumer can't smoke or eat) is, "The public demands it!" But just who is responsible for the entliusiasm on the part of the smoker f Even if it can be proven that the dazzling tube which definitely costs real money, has added nothing to tlie cost of the cigar, this expense has had to be ab- sorbed in some w^ay in order to sell merchandise at a profit. The more profitable classes and sizes of cigars are going back, and still further ])ack. The crowding of the output of the cigar industry into Chiss A must eventually lead to a reaction. It looks very much tis if at the present time, however, the cigar ])usiness is a battle to see who can make and sell cigars to retail at 5 cents and less, and still show a real profit at the end of the year. For the edification of interested readers we insert at this point the cigar withdrawals for Februaries from 1920 to 1932 inclusive. Total Withdrawals for Previous Februaries 1920 593,832,200 1921 490,724,482 1922 447,225,98() 1923 507,206,094 1924 498,790,313 1925 451,502,278 1926 451,204,147 1927 441,095,730 1928 453,005,097 1929 437,470,207 1930 420,521,773 1931 302,838,747 1932 347,728,048 We have taken 1920 as the peak year for our with- drawals and while these fijiiires are abnormal by com- parison with other years, on a basis of j)opulation increase they are not unfair. But so far as that is con- cerned, almost any year could be taken for comparative l)uri)oses and the fact remains that while population increases the consumption of cigars declines. AMiat is responsible for the indifference of the smoker to the pleasures of the cigar? Are the cigar manufacturers satisfied that it is entirely due to eco- nomic distress! Is the distributor or jobber responsible? Has the retailer failed in his most important contact with the consumer f And where is there reflected in the statistics any unusual increase in cigar sales that might be properly credited to the investments made by cigar manufac- turers in radio, magazine and newspaper advertising? Our observation is that cigar manufacturers are experiencing temporary gains on one or more of their brands at the expense either of other brands which they also i)roduce, or at the expense of their competi- tors' brands. And yet the monthly total of consump- tion continues to decrease. We have <|uestioned owners and clerks in large cities and small towns, and we have asked chain store tniplovees as lo their opinion of the cause of the un- usual "slump in cigar sales. When the answers are sifted the general conclusion is that the non-porous wrapper makes all cigars look alike, and for the most part taste alike. And the smoker says, ^^'Therefore why spend more than a nickel for a cigar?" ^ And if the increasing trend toward nickel mer- chandise cannot hold up cigar consumption, what does the future hold in the cigar business if an increasing number of smokers continue to refuse to Iniy the higher priced and finer cigar sizes? When you open a box of cigars today there is no fragrance of tobacco, or the aromatic bouquet of Span- ish cedar. There is nothing to arouse the sense of smell or to create the mental reaction that comes from inhaling the aroma of cigars in their natural wrappers and packed in Spanish cedar boxes. Unless there is a radical change in the present in- clinations of cigar smokeis, it looks very much as if the sale of the finer grades of cigars would be confined to a decreasing number of connoisseurs. And there is (Continued on page 15) I 52nd year THE TOBACCO WORLD April 1, 1932 April 1, 1932 Say You Saw It in The Tobacco World 52nd year LUMLEY TO REPRESENT SOMMERFELD COMPANY ENJA^IIN C. J. LUMLEY has announced that he has severed his connection with Carl Up- mann, Inc., and has taken on the representation of the V. AV. Sommerfeld Cigar Company, ot Miami Fla., and will represent that company m the future on their ^'Dulce" and "Verdi" 1)rands m his old territory, which comprises Eastern Pennsylvania, New York State, except New York City, and south to Richmond, Va. , ^ i n t v> The ''Monticello" cigar, a brand owned by John Warner & Sons, prominent distributors located at 2do Dock Street, this city, will in the future be manutac- tured ])v the Sommerfeld Company of the same quality of tobacco and in the same sizes and shapes, as the '^CarlUpmann." The ''Monticello" will take the place m the \Vag- ner line held bv the ''Carl Upmaiin" brand, which was formerly distributed in this territory by John A\agner & Sons. , . , IT, * Up to the present time this change has been meet- ing with entire success and it is possible that distribu- tion on the ''Monticello" may in the future be extended to other territories under the supervision ot Mr. Lumley. . ^ , ,, Mr. Lumley, of course, continues to represent the ''Garcia y Vega" brand in his old territory as formerly, and this brand has been showing a splendid increase m demand in recent months. A N Davis, who is operating a retail store and cigar manufactory at 3 N. Thirteenth Street, under the firm name of the King David (1gar (V)mpany, is doing a splendid business on his "King David" brand, re- tailing at five cents each and up. Mr. Davis also has the equipment to print your own name or his brand name on the cellophane wrappers used for cigars, and will also do this printing for any outside manufacturer who wishes it. Yahn & McDonnell are offering a high-grade cigar- ette tobacco for those who roll their own, under their owTi label "As You Like It." The tobacco is blended of high-grade Turkish and domestic tobaecos and is packed in two-ounce containers retailing at twenty cents. H. S. ROTHSCHILD HEADS BAYUK CIGARS N March 28th the following statement was is- sued by Mr. Samuel Bayuk, chairman of the board of Bayuk Cigars, Incorporated. "Mr. Harry S. Rothschild has today been elected president of Bayuk Cigars, Incorporated. ^ "The Board of Directors and officers of the Com- pan^' take great pleasure in announcing this important addition of strength to the management of the Com- P^iny. "Mr. Harvey L. Hirst becomes Treasurer ot the Company." Milton Wolf, Wisconsin territorial manager ot Bavuk Cigars, Incorporated, has been on a recent trip through his territorv and reports jobbers increasing distribution on Bayuk cigars in their allotted terri- tories. The Auburn Tobacco Company, ^Auburn, New York is receiving assistance from E. T. Clifford, Bayuk salesman, in promoting the sale of Bayuk cigars in that district. Pratt-Mallorv, Sioux (Uty, la., are cooperating with Roy D. Harris, Bavuk territorial manager, m ex- panding the sale for Bayuk brands in that territory. The E. i\ Hall Company, Brockton, Mass., are capitalizing on the saleability of Bayuk cigars in that section and have l)een receiving assistance from W. K. Wilsford, who was engaged in promoting distri- bution. Sometime Sunday night burglars forced an en- trance to the Yahn & McDonnell offices at 617 Chestnut Street, but practicallv nothing was stolen. Entrance was gained through the skylight of the building and when the thieves endeavored to reach the first floor where the cigar humidor is located they set off the burglar alarm, and despite the fact that detectives were on the scene in a very few minutes after the alarm was sounded, the thieves escaped. Ben Lumlev returned last week from his first trip to Washington 'and Baltimore representing the Som- merfeld Cigar Company on their "Dulee" and "Verdi" brands and reports a highly successtul trip and a splendid number of placements on his new brands. OiC mehiCA More for your money than in any other cigarette! You get many extras in LUCKY STRIKE as a re- sult of that famous and exclusive "TOASTING" Process. Extra Goodness — forced in when certain harsh irritants are forced out. Extra mildness, mellow-mildness — resulting from the purg- ing and purifying of every tobacco leaf. Extra Deliciousness — from the world's choicest tobac- cos^ — the Cream of many Crops. Extra Mellow- ness— from the use of modern Ultra Violet Rays. It's toasted Your Throot Prof ctlon -ogwimt Irrltotlow-oBolmt cowah CapT.. 1S3S. The Ainrriran Tob»m> Co. O. K. AMERICA TUNE IN ON LUCKY STRIKE-60 modem minuus with the ««orWi /im-.c dance orchestra, and Walter WincheU. u>ho3, goMMlp of today J«com« the nc«;i of .' f. lose stock is owned by this company; Init it includes he^ai net profits for the year of ^- - -^-j;;: all of whose stock is owned by, or held m tiust toi, tins company. The net earnings, after deducting depreciation and all charges and ex- penses for management, taxes, in- cluding provision for federal income ^ tax, etc., were ' Add: — Discount on V/c Gold Bonds, less premium on 6% Gold Bonds, pur- chased and cancelled 6,355.50 $46,235,882.97 Deduct : — Interest on 67o Gold Bonds $ Interest on 4^0 Gold Bonds 4 Quarterly Divi- dends of $i.50 each on 6% Cumulative Preferred Stock ($100 par value) . . 11,063.83 35,078.00 3,161,982.00 3,208,123.83 Net, applicable to Surplus Account . . . Surplus as per statement Dec. 31, 1930. Deduct: — Cash dividends on Common Stock and Common Stock B ($25 par value) : March 2, $1.25 a share and $1.00 a share extra $10,667,002.50 June 1, $1.25 a share . 5,926,121.25 Sept. 1, $1.25 a share . 5,926,126.2.) Dec. 1, $1.25 a share. 5,926,131.2.) $ 43,027,759.14 91,865,672.64 $134,893,431.78 28,445,381.25 Surplus Dec. 31, 1931 $106^,050^ The Balance Sheet is herewith submitted. James B. Hat?vir, Treasurer. li;xfra^Sl!f^"bl^tAusi% done in 1931, and th,s amount of governmental tax is included m these deductions. FINANCIAL STATEMENT December 31, 1931 AssFiTS : Real Estate,Machinery, Fixtures, etc., at cost, less reserves for de- preciation and obso- ^,,^_. ^.^^^^ lescence $18,8 ^ ;v348.86 Leaf Tobacco, Manu- factured Stock, Oper- ating Sui)plies, etc., ^^^^„„^^q^. at cost •^'I'l^^^?-^'^ Stocks and Bonds (^ash I Jills Receivable Accounts Receivable . . I'rei)aid Insurance, etc. Am(mnts owing to this (V)mpany by AfBli- ated Companies .... Brands, Trade Marks, Patents, Good AVdl, etc (;4,003,692.44 26,810,061.32 2,683,430.32 12,469,8.56.24 211,849.19 17,099,125.63 54,099,430.40 Total Assets (Continued on Page 15) $294,389,903.05 've switched to CAMELS because they're FRESH'' O _ 'nCE a woman smoker has been intro- duced to Camels it's a case of love at first light. The first cool, mild fragrant puflf of smoke from this fresh cigarette is sufficient to win her to Camels' ever-growing ranks of friends. Maybe it's because her throat is more sen- sitive than a man's that she's so quick to grasp the difference between the mildness of this air -sealed cigarette and the stinging bite of parched or toasted tobaccos. Blended from choice Turkish and mild, sun- ripened Domestic tobaccos, Camels are made with just the right amount of natural moisture and kept that way until delivered to the smoker by the Camel Humidor Pack. These cigarettes are never parched or toasted. The Reynolds method of scientifically applying heat guarantees against that. If you haven't smoked Camels lately, per- haps you've been missing something. Why not switch over for just one day ? After you've known their rare, throat- easy mildness, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY Winston-Salem, N. C. **Are you Listentn'P" R. J. REYNOLDS TOBACCO COMPANY'S COAST -TO -COAST RADIO PROGRAMS Camei Quarter Hour — Columbia Broadcasting System Prince Albert Quarter Hour National Broadcasting Company Red Network See radio page of local newspaper for time Do/; 7 remote the Camel / /*^, Humidor Pack— it is pro- tection against perfume and powder odors, dust and germs. Buy Camels by the carton for home or office. The Humidor Pack keeps Camels frtsh © 1932, R. J. Reynolds Tobacco Company Camels 8 52nd year THE TOBACCO WORLD April 1, 1932 April 1, 1932 THE TOBACCO WORLD 52nd year 4 News From Congress 'AND RAL Departments EFEAT of the manufacturers' sales tax by the House of Representatives March 24th will make necessary the development of other tax sources wliereby to raise approximately $600,- 000,000. To take the place of the sales tax, it is probable that the Administration recommendations of last De- cern! )er will be suggested. These include an increase ill the rate of ])ostage on lirst-class mail, estimated as providing' $135,000,000 a year; increased tobacco taxes, to raise $58,000,000; a real estate transfer tax, $15,000,000; automobile taxes, $100,000,000; taxes on radios and phonographs, $10,000,000. In addition, there have been suggestions for taxes on bank checks, $97,000,000; a gasoline tax, $1()5,000,000 ; a tax on jewelry, $15,000,000, and taxes on tlie domestic con- sumiJtion of gas and electricity, $57,000,000. Opposition to tlie sales tax was widespread. It in- cluded the antagonism of tlie East to the proposed tax on gasoline and fuel oil, the opposition of manufae- turers generally to the whole principle of a sales tax, and the fight against any tax which would be a burden upon the workingman, as it was contended the sales tax would be. This last opposition was not abated to any extent by amendments offered by the ways and means committee to exempt from the tax all foods, all cloth- ing, including shoes, and a number of other items. Possil)ilities that the revenue l)ill may not be en- acted into law until well into the summer are seen in the delavs the measure has encountered in thellouse. l^re])- aration of the measure was undertaken early in Janu- arv, and hearings on the bill were held during the latter part of that month; the measure was reported to the House on March 7th. After passing the House, the bill will go to the Senate, where, again, hearings will be held which pro])ably will not be concluded until well toward the end of Ai)ril. The measure then must run the gamut of the Senate and, after passige there, must go to a conference committee where any differences between the two Houses will be ironed out. The most oi)timistie observers even do not believe the measure can be finally enacted until very near the end of May at the earliest and if anything occurs fur- ther to delay the measure it will go over until the early fall, for Congress will adjourn or recess about June iOth in order to clear the way for the national conven- tions at Chicago, the first of which begins June 14th. That Congress will not adjourn from June to December but will recess probably until Septemlier now appears likely as the legislative jam liegins to make itself felt. Consideration of appropriation bills has been postponed by the Senate until after it has a chance to read the House tax l)ill and determine the extent to which economy must be practiced. (Washington Bureau 622Albee Building If the tax bill is not passed so as to permit the imposition of excise taxes by July 1st, the attempt to balance the budget by June 30, 1933, is threatened with failure, since the amount to be raised is predicated upon having these taxes in force throughout the entire fiscal year. Ct3 [t3 Ct3 Parcel Post Rates to Be Increased Having gained the approval of the Interstate Com- merce Commission to its petition for increases in post- age rates on parcel post shipments, the Post Office De- partment is now canvassing the various industries to determine whether July 1st would be a satisfactory date for the changes to be made effective. In seeking the views of industry, the department points out that it is anxious to co-operate with business to the fullest extent possible and, to that end, is seek- ing a date for the new^ rates which would not place a sudden burden upon commerce. It is pointed out that in many lines, catalogues carrying delivered prices are issued periodically and that, in a number of the trades which are heavy users of the parcel post service, these price lists are issued around July. It is felt l)y officials of that department that if busi- ness is given a considerable period in whieh to prepare for the cliange, the new rates will not be unduly bur- densome, ])articularly as many trades will benefit by the reductions in long-haul rates. A number of indus- tries have already signified their approval of July 1st as the date for initiating the new rates. Meanwhile, there is a determined movement at the ( apitol to prevent a recurrence of the present situa- tion, where the Post Office Department has secured the ai)pr()val of the Interstate Commerce Commission to rate changes of which the Post Office Committees of H(mse and Senate are not in favor. Parcel post rates are the oiilv ones over which the commission has juris- diction, ( Vnigress setting the rates for all other services, and it is felt that the power of Congress should ex- tend to all rates or to none. With this in mind, legislation has been introduced to stri]) the Interstate Commerce Commission of its rate-making ])owers with respect to parcel post matter and vest that authority in (Vmgress. It is feared, how- ever, that this legislation would not meet with the ap- proval of the Arown & Williamson Company, formerly priced at $8 v.'holesale and retailing at two for thirty-five cents, has also been reduced to wholesale at ^H.So less the usual discounts, which will place this l)rand in the fifteen-cent class. AMERICAN TO INSURE WINCHELL The American Tobacco Comi)any is planning to take out a $350,000 life insurance policy on Walter Winchell. It is rei)orted that this ])rotection is sought in connection with a special advertising campaign which will center about Winchell. It is expected that the campaign will be of brief duration because the insurance sought is to c<»v«'r a l)eriod of one month only. Yahn & :McI)onnell stores are displaying a new line of pi])es under the trade name of "Monarch." These pipes are beautifully finished brier, with a ])atentend say it can't l)e done. It Can be done. If the ex- Governor's statement is true, nine out of ten have it. All Ave have to do as salesmen is go after it." CHARLES SEIDER PASSES Charles Seider, for fifty-two years a cigar manu- facturer o|)erating a cigar factory at Fourth and Kace Streets, this citv, passed away on Thursday, March i:4th, at his liome, :»0()0 West Uirard Avenue, following a brief illness. Funeral services were held on Tuesday, ^larch 21)th, from 21'11 North Broad Street. Masonic bodies of which he was a member were in charge of burial M'r vices in Mount Vernon Cemetery. Mr. Seider was honorary president of the l^hiladel- phia Rifle Club and a member of the following Masonic l>odies: Lodge Xo. 4:V2, F. «Jc A. M.; Tristain B. Free- man, 1\. A. ('. No. iM:}, and Pennsylvania Commandery Xo. TO. He is survived by his wiroi)osition, just let Charlie or Dave talk to vou for a few minutes. 10 52nd year THE TOBACCO WORLD April 1, 1932 April 1, 1932 Say You Saw It in The Tobacco World 52nd year 11 TOBACCO ADVERTISING SHOWS GAIN N SPITE of generally decreased appropria- tions in other fields, expenditures by the to- bacx'o industry for advertising in national magazines during March and over national radio networks during February showed substantial gains as compared to the «ame months a year ago. A drop of 11.3 per cent, from $39,850 to $35,350 tor March farm magazines was inconsequential mcoiitras^^ to the gain of 16.4 per cent., from $480,914 to $560,128, in national magazines. The total for the two was $o9o,- 478, a gain of 14.4 per cent., according to figures com- piled from National Advertising Records by the Busi- ness Survev Department of Dorrance, Sullivan & Com- pany New* York advertising agents. Of the expendi- ture in national magazines, $492,473, or 87.9 per cent went for cigarettes ; $65,092, or 11.6 per cent., went for manufactured tobacco and smokers' supplies ; while only $2563, or 0.5 per cent., went for cigars. For the first quarter of 1932 the total in national magazines and farm magazines was ^I'^^^'^JJ' ?^V"^" crease of 17.4 per cent, over the figure ot $l,5r5,/&.l for the same period of 1931. National magazines ac- counted for $1,737,827 of this total, ahead of 16 J per cent., and farm magazines accounted tor ^llJ,Uou, ahead 28.0 per cent. . , . i Radio adveiiising over national networks was $801,133 in February, 205.4 per cent, above February, 1931 bringing the figure for all three classifications to $1,499,700 during that month, 92.3 per cent, better than last year's total of $779,854. For ^^he ^r^ V'''^ months of the vear the radio total was $1,629,155, ahead 225.9 per cent.*, while the total for all three groups was $2,883,554, ahead of 85.5 per cent. HARRY CATLIN JOINS CONSOLIDATED Harry Catlin, well known throughout the country as former head of the Porto Riean-American Tobacco Company's sales department, has become associated with the Consolidated Cigar Corporation as assistant sales manager of the company. Mr. Catlin's experience of twenty years with the Porto Rican-American Company makes him particu- lar! v well fitted for his present position. 'Mr. Catlin is now traveling in Virginia, Pennsyl- vania and Washington, D. C, in the interest of his new connection. BERNARD SCHWARTZ REDUCES DIVIDEND The Bernard Schwartz Cigar Corporation, De- troit, has reduced the quarterly dividend on the no-par preferred stock from fifty cents to twenty-five cents a share, payable April 1st to stockholders of record March 21st. ^ The company reports net income of $80,/ 52 in Uvil after taxes and charges. This is equivalent to $2.45 a share on the preferred and sixteen cents a share on the common, as compared with $196,639 in 1930, or $5.88 a share on the preferred and $1.49 a share on the common. FALLON IN HAVANA Frank Fallon, United States representative for the '"Partagas" factory in Havana, and vice-president and sales manager of E. A. Kline & Company, has fully recovered from his recent operation for appendicitis and left on Wcdnesdav for Havana for a conference with officials of the "Partagas" factory. He expects to be in Cuba a week or ten days. BALANCE THE BUDGET N VIEW of the seriousness of the financial situation of the Government we are publish- ing the following resolution which has just been adopted by the board of directors of the Chamber of Commerce of the United States regarding the necessitv for a balanced budget. The uncertainty prevailing iii regard to just what action will be taken by the present Congress, is unquestionably having a detrimental effect on whatever measures might be taken throughout the country at the present time to- ward improvement in business, and we believe this resolution deserves the united support of every citizen who is interested in preserving the credit of the coun- trv and in business revival. ■ The board of directors of the Chamber of Com- merce of the United States has passed a resolution urgentlv calling for a balanced federal budget. The resolution was introduced by Silas H. Strawn, presi- dent of the Chamber, who in presenting it declared that his European trip from which he has just returned convinced him more than ever of the peril that lies m unbalanced national budgets. The resolution, as adopted by the board ot direc- tors, reads: ''Balancing the national budget through proper measures of economy and taxation is the first essential for improvement in the country's economic position. It will strengthen credit, public and private. It will give opportunity for that confidence which will permit business to go forward. It will prepare the way for increased employment. For the public welfare there can be no alternative for a balanced budget. "Every economy should be put into effect. Dras- tic cuts in government expenditures can and must be made. Such reductions depend upon the readiness of evervone to forego special interest in appropriations. Supporting Congress in reducing total expenditures means supporting Congress in reducing particular ex- penditures. "To balance the budget, under present conditions requires not only the strictest economy in expenditures, but additional taxes, carefully framed. In levying such taxes, great care and fairness should prevail so as not to dry up important sources of income and discourage business enterprise on which employment depends. "We appeal to the public spirit of Congress to re- view very carefully methods and rates, but to aim un- swervingly to the essential objective of a balanced budget. , , , "We appeal to business men everywhere to ab- stain from critical objections, to manifest their willing- ness to aid Congress 'in this problem. This emergency calls for placing the national welfare above all other considerations so that the credit of our Government shall not be placed in jeopardy, and we appeal to all other organizations to join with us in this patriotic movement." BROWN & WILLIAMSON ADDS TO FORCE The Brown & Williamson Tobacco Corporation, Louisville, Kv., has added one hundred employees to the factory force, bringing the total number of factory employees now to more than three thousand. This is understood to bo due to the increased de- mand for Brown & Williamson products as a result of the recent price reductions on their products. Did you say lO^ ? Yes I sa uLI O < ! SMOKING TOBACCO FORMER BOX MANUFACTURER DIES A. ANDERSON, pioneer cigar box manufac- turer of Tampa, Fla., passed away at his home in Tampa, Fla., on March 19th, following an illness of several months. Mr. Anderson was born in Sweden and came to this country when he was nineteen years old, and en- uaged in the lumber business in Pennsylvania. Some- Tinie later he moved to Tampa where he continued in the lumber business for a time, but later joined George F. Weidman and Thomas D. Fisher in organizing Weidman-Fisher & Company to manufacture cigar boxes. Last vear Weidman-Fisher Company was merged with the Tampa Box Company, also a cigar box manufactory, and the business has since been car- ried on under the name of the Leiman-Weidman Box Company. Mr. Anderson continued active in the firm until forced to cease on account of illness. He is survived by his widow, one daughter, three sons and a brother, all of Tampa. He was sixty-eight years old. SWISS BUYING MORE AMERICAN CIGARETTES Sale of American cigarettes in Switzerland in- creased 8 per cent, in 1931 as compared with 1980, ac- cording to figures recently compiled by the United States Department of Commerce. A productive adver- tising campaign by the distributers helped to account for this gain. Advertising is being employed as an otTective sales weapon in behalf of cigarettes in Switzer- land just as it si in the United States, where large amounts are invested in newspaper space to tell the l)ublic about the removal of impurities through im- provements in manufacturing such as the toasting l)rocess including the use of ultra-violet rays and im- provements in packaging such as the notched-tab cello- phane wrapper. The Swiss liking for American to- bacco is also indicated by the tobacco imports, approxi- mately half of the imported leaf tobacco of Switzerland being* supplied by the United States. L. & M. BRANCH MANAGER HERE ON VACATION H. M. Vantis, manager of the Ismir branch of the (lary Tobacco (^ompany, Liggett & .Myers subsidiary, a! Ismir, Turkey, has arrived in this country on a vaca- tion. Mr. Yantis plans to return on the Steamship "Europa" sailing May 12th. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH. Wheeling. W. Va President CHARLES J. EISENLOHR. Philadelphia, Pa Ex-Preiident JULIUS LICHTENSTEIN, New York, N. Y ' Vice-President WILLIAM BEST, New York. N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL, New York, N. Y Vice-President H. H. SHELTON, Washington. D. C Vice-President WILLIAM T. REED. Richmond. Va ..Vice-President HARVEY L. HIRST, Philadelphia, Pa ...Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLlfeD TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio ...♦••.. CHAS. B. WITTROCK, Cincinnati, Ohio GEO. S. ENGEL, Covington, Ky WM. S. GOLDENBURG, Cincinnati, Ohio •••.♦#■•**• President Vice-President Treasurer ..Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City ...».,...*.....•.»•.... President MILTON" RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN. New York. N. Y First Vice-President ABE BROWN". 180 Grumman Ave.. Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-Pres.dent GOVERNMENT PROFITS FROM CIGARETTE INCREASE All tobacco companies have been in a bull market since the war, probably owing to the great increase in smoking during the war and to the converts among women. In the decade ended 1930 American Tobacco net income increased 155.2 per cent., K. J. Reynolds Tobacco net income increased 220.3 per cent, and Lig- i^^ett & Myers Tobacco Company net income increased 149.9 per cent. If the war stimuhited the use of tobacco, as most observers agree, it may be recalled lliat the various governments collectively brought al>out the war and thus should share in the industry. In leading European countries, indeed, the governmenl oiJcrates the tobacco monopoly for the nation, taking all the profits. 12 52nd year THE TOBACCO WORLD April 1, 1932 RETAIL STORE PROBLEMS Measuring a Retail Market So matii/ persons are unaware of the many aids to Ijusiness which have been carefully prepared by the Ignited States Government, and so many of those who are aware of these facilities fail to take advantage of them, that we are publishing the following studies as an aid to the retailer. — Editor. {This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff nnder the supervision of Law- rence A. Hansen.) Introduction HE measuroment of a retail market resolves itself into a scientilic study of a community. C'areful business men are laying increasing stress upon research work in the various phases of industrial activity. Vast sums have been spent upon industrial research, particularly as related to the manufacturing processes. Investors and bank- ing houses investigate new enterprises with all the ac- curacy that modern business practice makes possible to assure themselves that the venture is economically justified. Just as the manufacturer and ])anker have realized the importance of research in their management prob- lems and have proved the advantage of knowledge over guesswork in business, so may the retail merchant benefit by a study of his problems in the light of facts scientifically gathered. Since the purpose of any re- tail business is to sell merchandise, thereby making sufficient profit to compensate for the energy and capi- tal expended, it seems only logical that the merchant should desire to obtain all the infornuition possible relative to his market. Retail business has passed from a seller's market to a buyer's market; the consumer is no longer taking anything and everything that may be pushed his way, Imt is rather selecting his purchases to suit his own demands. These demands may l)e .justified or not from the viewpoint of same purchasing, but it is small part of the merchant's duty to judge them. He may prop- erly give advice to his customers, but his chief function is to supply their demands and needs. He can do so most adequately if he makes a quantitative analysis of the market and a qualitative analysis of the consumer demand. Such sales researches serve as guides to the possi- bilities of the future and are of value to the prospective merchant in choosing his field, as well as to the estab- lished merchant in pointing the way. In planning to enter a new field the retailer may find by a careful analysis of his prospective market that it does not re- flect such favorable circumstances as a cursory exami- nation appeared to reveal. He may by such an analysis be saved from embarking upon the enterprise, and thus ])revented from subse(iuent failure, and society may be saved much waste of effort and loss of capital. I'pon this nuirket survey of sales possi])ilities should depend many important executive problems. The starting point iii any system of budgetary control, for example, should be planned sales, but its accuracy depends materially upon the measurement of the com- munity's possibilities in terms of merchandise needs. With the reports of such a survey serving as a guide, the purchasing of stocks may be much more effectively performed. Advertising may be more effectively planned; the buying motives of the customers can be revealed and the advertising copy so planned as to make a direct appeal to these motives. Though the use of statistical data and forms is necessary in the procedure, it is not the purpose of this study to make any definite outline in this respect, but rather to state how such a measure of the retail market may be accomplished, leaving to the individual mer- chant the analysis of those factors pertaining to his own local conditions. Obviouslv, no individual re- tailer's problems can be considered; we shall consider only the broad aspects of the subject. Preliminary Analysis Every market investigator will find that, whereas there are certain methods of procedure common to all market analyses, each investigation will differ in some respects, according to the purpose of the research, the completeness desired, and the class of merchandise for which the market is examined. Therefore, the first step is to take a broad view of the problem A\4th a defi- nite attempt to obtain a general perspective of the entire situation. Subsequent procedure must then be so clearly planned as to leave no chance that the ulti- mate aim will be lost in mere detail as the investigation proceeds. Since it is beyond the hope of anyone to know all possible facts regarding a particular market, the only logical course for an organization desiring to try out market analvsis on a small scale is to allot in advance a definite amount of time and monev for the survev and then keep to the schedule as far as practicable. Having visualized the campaign in its entirety and determined at the outset the precise objective or results to be ob- tained, the classes of data to be gathered and the amount of necessary detail can be chosen nuich more judiciously. Essential deviations from the initial plan can be made from time to time as considered feasible. There is often difficulty in determining the com- munity's trading population or trade territory. Some writers have arbitrarily indicated that the average city should draw from an outside territory that embraces a population equal to 40 per cent, of itself. It is ob- vious, however, that many conditions determine the extent of the city's trading territory. Of the more im- portant factors in this respect are those geographical conditions ])laying their part in freeing a city from outside competition or in handicapping it in the race for trade. Merchandsing methods extraordinarily fair and comprehensive have served as a means for some cities to include in their trade territory outlying dis- tricts whose population was equal to 75 per cent, of that of the original city. One can not emphasize too strongly the im])ortance of efhcient merchandising poli- cies when an efTort is being made to measnre and ascer- tain a potential market. Fre,247, as compared with $4(i4,433 in the preceding vear. Including other income, gross income for 1931 was $538,4G6, comparing with $944,415 in 1930, which included $282,634 ])r()fit on the sale of real estate. Interest on the company's guaranteed OV^ per cent mortgage sinking fund gold bonds for the year 1931 was $33(),731, against $435,8()0 in the previous vear, leaving net income of $201,735, as compared with $508,555 in 1930. The capital stock amounting to 100 no-i)ar sliares i^ all owned bv 1). A. Schulte, Inc., which is controlled bv the Schulte Retail Stores Corporation. UNITED ORGANIZING STATE CORPORATIONS The New York United (^igar Stores Corporaticm has ])een organized with a capitalization <>f $20,000, and it is understood that similar eort)orations will be chartered in other States. This is reported to l»e purely an internal working of the United Company and will not affect the general i)olicies of the coin])any. 1 he United Cit-'ar Stores will be operated in each State by the State corporations, when the present plans are completed. YORK COUNTY PRODUCTION UP According to internal revenue iianv not yet ex- changed' 841,250.00 Scri]) matured March 1, 1921, and not yet \)\'i}- sented for redemp- tion 4,(;91.00 Dividend Certificates convertible into Common S t o c k !> j\larch 1, 1!)23, and not yet presented for conversion 4,4o8.00 I*rovision for Dividend on Preferred Stock, for quarter ended Dec. 31, 1931, iiayable Jan. 2, 1932, $7!)0,495.5O Accrued Interest: Parable April 1, 1932 on 67. Bonds 2,r)8(;.50 P a V able F e b. 1, 193'^ on 47 Bonds 14,020.83. 807,202.83 Accounts Payabh' .... 3,.)S4,1.)9..)9 ;\ mounts owing by this Com])any to A filiated UoinpaiiH- 9S8,19:>.01 Provision for Advertis- inir, Contingencies, Taxes, ete 1(1,310,473.09 Total Lial)ilities 187,941,852.52 Surplus $10(;,448,050.53 The above assets and liabilities include those of American Sui)])ru'rs, Incorporated, a wholly owned leaf bnyinu- su1)si,04:> on tobacco inventories and $102,775 write-down on securities to market values at the close of the year charged against surplus ac- count. In 19:)0 tlio loss wiis Ji^29;'),703, but before pro- vision of $290,7S:', for de])reciation of inventory, taxes and contingencies, which were charged against surplus. AMERICAN SUMATRA REPORT American Sumatra Tobacco Corporation^ and wholly owned subsidiaries show total assets of $7,927,- 67(> at the end of the year, comparing with $7,999,978 on Julv 31st last year* and earned suri)lns of $.154,971 against $418,72.".. ' ( kirrent assets were $2,520,589 and current liabilities $39,585, comparing with $2,601,670 and $26,347, respectively, on July 31st last year. EIGHT MONTHS WITHDRAWALS FOR CON- SUMPTION Cigars : Class A— U. S. . . P. R. .. P I Total Class B — U. S. . . P. R. .. P. I. Total . — Decrease First 8 Mos. -{-Increase Fiscal Yr. 1932 Quantity 2,474,681,485 + 115,137,915 65,090,675 — 34,454,405 118,()65,890 + 15,789,980 2,658,438,050 + 96,473,490 51,561,793 805,750 938,240 181,733,960 1,465,000 133,325 • • • • 53,305,792 — 183,332,285 Class C- u. s. p. R. P.L 812,469,6.30 — 305,161,8.30 2,956,144 — 3,804,736 332,008 — 484,572 Total 815,757,782 309,451,138 Class D— U. S. P. R. P.L Total .... 50,637,594 — 24,546,109 18,200 — 1,500 5,222 — 3,518 .50,661,016 — 24,551,127 Class E— U. S. P.R. P.L 9,148,488 — 6,577,028 500 — 2,(;oo 14,:U2 — 54,669 Total 9,163,300 — 6,634,297 Total All Classes : U. S. . . P.R. .. P I 3,398,498,990 — 402,881,012 68,871,269 — 39,728,241 119,955,681 -{- 15,113,896 Grand Total . . . 3,587,325,940 — 427,495,357 little Cigars: U.S. p. R. P. I. . 205,845,440 3.500,000 24,084,879 550,000 Total (Cigarettes : U.S. P.R, P. 1. 209,:U5,440 70,659,638,358 5,662,200 1,336,880 24,6.34,879 7,744,383,.320 8,508,800 313,763 Total 70,666,637,438 —7,753,205,883 Large Cigarettes: U.S. P.R. P.L . Total Snuff (lbs.): All U. S ^robacco (Mfd.): IT. S. (lbs.) .... I'. I Total :'»,142,.581 649,500 200 1,140,933 950,500 5,000 3,792,281 — 2,096,433 25,757,392 — 217,12(;,237 + 80(; — 616,161 2,923,940 437 217,127,043 + 2,923,503 April 1, 1932 Say You Saw It in The Tobacco World 52nd vear 17 MANILA NEWS N ACCOUNT of the existing free trade rela- tions, the American market is the most im- portant for the Philippine cigar and partially manufactured tobacco export trade, because the United States gets about 55 per cent, of the total l(.cal yearly cigar production and seven-eighths of all the partially manufactured tobacco exported yearly to foreign countries. This was declared by S. Blaquera, Chief ot the Tobacco Industrv Division, Bureau of Internal Reve- rue and Secretarv of the Philippine Tobacco Board, at the convention of the lieldmen and experts of the Bureau of Plant Industry held in :Manila, P. I. Aiarch 15th was "Tobacco Day" in the convention. .Mr Blaquera revealed during the general discus- sion at the confab that the Philippine (lovermnent, through its agencies is working hard to tind out a local wrapper with which to manufacture cigarettes and cigars to compete with those coming from the United St'ites. The tobacco industry, he said, is first in importance among the revenue-producing crops, in the Islands^ the public coffers collecting a total of no less than $1^561,- 425.50 from excise taxes on cigars and cigarettes during the last six vears. This amount does not include the fees collectable on the inspection of tobacco as required by law which amounts to $75,000 a year. All in all the total revenues collected by the Philip- fine Government from to])acco can be estimated at >^4 000,000 a vear, which represents ixhoui 10 per cent, of the total collection of the Island's Government. Markets for Philippine cigarettes, according to tlicir importance are China, Canary Islands, Japan, United States, Indo-Cniina, Straits Settlements, India, .lava, and some small countries, while the principal l.uvers of Philippine leaf tobacco are Spam, Austria, .lapan, Korea, Africa, Belgium, Holland and Australia. In 1931, 75 per cent, of the total leaf tobacco exports went to Spain. The indifference of local tobacco farmers to the adoption of the proper way of classifying their prod- ucts as indicated bv the classification and Imildmg regu- Intions promulgated in accordance with the require- ments of the trade, and enforced by the Bureau ot In- ternal Revenue, was scored by the Speaker, who added that the conservatism among farmers in the promotion of the industry, is a great obstacle. The delegates were also told by him that there are at present in the Islands, 6840 retail leaf tobacco dealers, 559 wholesale toba-cco dealers, and 140 manu- iacturing establishments that manufacture the raw inoducts of tobacco into either cigars, cigarettes, smok- ing tobacco (Picadura) or chewing tobacco. It can l)e estimated, he said, that about 25,000 persons are em- ].loved in the manufacture of tobacco products, and no less' than 100,000 farmers engaged in it. The Tobacco Board at Manila has allotted the ap- propriation for promotion work to the Bureau of In- ternal Revenue for the year 1932. They plan to spend rnie-third of the amount for the experimental station in the Isabela Province. The station is developing a new shade wrapper which has become an important item in the Philippine tobacco trade. A determined • ffort is being made also to make elYectixe the regula- tions to grade and pack tobacco. Graduates from Agricultural Colleges were grad- iiallv assuming the management of tobacco plantations and'are getting good results from modern methods ot farming. The Bureau of Internal Revenue will exert .^JIiy.^^llLLtliiJ!lLLi|>^l>Aii|^y{!iU^^UtltUt^^ iwwi\s/ji>s/!Wju8/j:;j Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. ^!er^^I?fSlJ7W^^1^fl^Ir7W^lTMf?ilPilu^^^ }t7t(ifr*Mr)«virirsvir^ FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Stricklcr Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Fr.\ , Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE— No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide, Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana (luality cigars, oiTcrs fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATINO CIGAR FLAVORS ^ u u . Make tobacco meUow and smooth In character and Impart a most palatable flavor FLAVORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. AKOMATIZEB. BOX FLAVORS. PASTE SWEETENEKS FRIES fii BRO.. 92 Reade Street, New York LIGGETT & MYERS BONUS REDUCED FP'K^ERS of the Liu'^-ctt c^c Myors Tobacco Company liavc voluntarily a.u:i'i'«'il 1*> reduce the amount of the bonus paid to them, accord- ing to a statement made at the annual meeting (»f the conrpanv in Jersey C^ity, on March 14th. At one time 10 per cent, over a certain basic amount wa^ ^et aside for distribution to ofticers and employees. Tliis was reduced to 5 per cent. al)out three years ago and last vear a further reduction to 2VL' per cent, was effected. * The reductions applied to officers and about -)()0 other emplovees. The stockholders at the annual meeting approved a change in the by-laws providing tor the new scale of ])ayment. Sales of the principal brand of cigarettes manu- factured by the ccmipany have been better so far this vear, it was stated at the meeting. every effort this y«'ar to persuade the producers to clas^ifv their leaf tcjbacco in accordance with the regu- lations and the vcninger m-n, the college graduates, mana<-ing manv i)lantations, are being depcinled on to further this work. A third of the appr()])natioii will go to the Ins|)(H'lion Department of the l>ureau. The other third of the appropriation will be used ill the Ignited Stales to support the Phili])pin(^ (bjvern- nient Tol)acco Agency and the ])r(miotion of the Manila cigar trade in various advertising mediums. APRIL 15, 1932 18 52nd year Say You Saw It %n The Tobacco World April 1, 1932 Tobacco Merchants' Association Registration Bureau, '^tVyora^^^^ Schedule of Rates for Trade-Mark Services Effective April 1, 191,6. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowance of $2 will be made to memberi of the Tobacco Mer- chanta' Association on each registration. Note B— If a report on a search of a title necessitates the reporting of more than ten (10) titles, but leas than twenty one (21), an additional charge of One Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-on- (31), an additional charge of Two Do"*" ($2.00) will be made and so an aoditional charge of One Dollar (|100) will t>e made for erery ten (10) additional titles necessarily reported. REGISTRATIONS SLOPPY JOE'S:— 46,002. For cigars, cigarettes and tobacco. March 4, 1932. A. (lutierrcz, Inc., I'assaic. X. J. HOT-CHA: — 46,003. I'or all tobacco products. March 3, 1932. (ieorge Schlegel. Inc., Xew ^'ork, X. V. PITTS TWIN TUBES:— 46,004. l-Or all tobacco products. March 3. 1932. El Moro Cigar Co., (ireensbor... X. C. BREN CARNAT: — 46,005. I-or all tobacco products. March 2, 1932. Lucas Reves. Xew York, X. Y. HOTEL OLDS:— 46,006. For all tobacco products. March 15, 1932. R. I. Seiclenberg Co.. Bufifalo, X. Y. DETERMINATION:— 46,008. For all tobacco products. March 19. 1932. 1). Eniil Klein Co.. Inc., Xew York, X. Y. (By consent of Consolidated Litho. Corp.. Brooklyn, N. Y.> TRANSFER ROTARY CLUB:— 6,083 (State of California). For cigar boxes and cigars. Registered April 9. 1913. bv J. Xewnian, Los Angeles, Cal. Transferred to Charles Leib, Los Angeles, Cal., October 4, 191(). (" McKESSON & ROBBINS NET KKSSOX k KOBBIXS, INC., one of the coiniliy's lar^^'st mamifacliiiers and distribu- tors ot* dru^^s and allied jiroducts in its pam- plilot report for 19;^>1 and shows not profits of $l,84;j,7:}i> after expenses, depreciation and taxes, eoni- pared with $2,(i2!),llH; in the previous year. Net profit for 1931 was e<|ual to 1.17 times the preferenee stock dividend, and after (le(hictiii^' this ])ayineiit the balance was equal to 'J4 cents a share on the l,082,r).j5 shares of common stock, comi»ared with 94 cents a share on com- mon in the ])revif)us vear. Net earnings before fixed cliarj^es totaled ?r;;,l2(';(M;s:], e(iual to -J.Hl times the annual interest on the onts1andin<:: debentures. The balance sheet, as of December IHst, showed casli on hand of $2,S47,494. Current assets totaled $54,009,559 and current liabilities $10,724,421, compared with $55,719,4r)9 and $9,25(i,901, respectively, at the end of 19:H). F. Donald (N)ster, ])resident, reimrted that major economies amount intr to a])proximately $2,000,000 had ]>een effected in 1!>.'50, principally through salary and wage reductions. Consolidated net sales for the year were $119,907,- ;)85, a decrease of $14,989,055, or 11.05 per cent, com pared with sales in 19.'>0. TOBACCO MEN ON WASHINGTON COMMISSION .Mayor Walker, of Xew York, has api)ointed sev- eral meii associated with the tobacco industry to mem- bership on the (Jeorir*' AVashington Bicentennial Com- mission as follows: Jacob A. Voi-ce, president of the (\)nsolidate(l Lilhographing Corporation; Joseph P. (hillman, Jr., ])resident of Webster, Kisonlohr, Inc.; Howard S. <'ullman, vice-president of Cullman Bros., Inc., and Frank Fallon, vice-president of E. A. Kline & Company. AMERICAN TOBACCO BONUS PLAN ENJOINED HE American Tol)aceo Company was enjoined tempoi-arily on ^larch 18th from paying more jirolit -sharing bonuses to George W. Hill, pres- ident, and other officers, by Federal Judge Francis 0. Caffey, in Ne\v York. The injunction was granted on behalf of a minor- ity stockholders' group headed by Richard Reid Rogers, who claims that the stock-purchase bonuses amount to a $30,000,000 dilution of stockholders' equi- ties. The company's 1931 net earnings are equivalent after 6 per cent, preferred dividends to $9.07 a sliare, par $25, on 4,740,905 shares of combined common and common B shares outstanding at the end of the year. This compares with net earnings in 1930 of $43,294,- 7(59, equal to $8.5() a share on 4,087,054 combined com- mon and common B shares outstanding at the end of 1930. Referring to the injunction against further bonuses to officers, Judge ( 'affey observed that he was "ready to award the plaintiff anil I feel that lie is entitled to an injunction peudenic lite agains^t future payments to' individual defendants under the l)y-law either for 1931 or for any sul)se(iuent year. If an appeal from an order to that effect were taken promptly and prose- cuted expeditiously," the Court continued, ''my dis- position will be to postpone action on the balance of tlie motions until after a decision of the Appellate ( ^ourt. On the other hand, I reserve the right, in the light of the developments hereafter, to proceed with the other phases of the motion. ^Moreover, I shall pro- ceed with them if all parties desire me to do so or if the defendants elect not to appeal." No further order is necessary at present, the Court said, in pointing out tliat liis order was fair to both sides, there being no suggestion of insolvency calling for an immediate final decision. Chadbounie, Stanch- field & Levy represented the American Tobacco Com- pany and its officers. ^Ir. Rogers, who is a well-known corporation lawyer, represented himself. In a statement concerning the decision of the court the officials of the American Tobacco Company stated that the court's "impressions were only tentative and not final, and they concurred with the court's views as to tlie desirability of procuring an early authoritative luling on the by-law by the Circuit ( \)urt of Appeals." (J ranting of the injunction against the officers of the American Tobacco Company for the payment of bonuses on the petition of a stockholder recalls similar court proceedings in the case of the Bethlehem Steel (V)rporation wliich led to the modification of tlie bonus system of Bethlehem before the court proceedings came to an issue. The litigation with respect to the Ameri- can Tobacco bonuses lias been going on quietly for more than a year. Because of its huge earnings the American Tol)acco bonus system gave the president of the company the biggest annual bonus in corporate history, not even excepting the Betlilehem bonuses. One section of financial opinion holds that such a sys- tem is justified, but another is adamantly opposed to such payments. The injunction against the American Tobacco officers will be appealed to the Federal Cir- cuit ( \)urt, when a final decision will be rendered. The lower court indicated some doubt as to the entire suli- iect but held with the stockholders that the corporation 1 v-law, under which the bonuses are paid, "is invalid and the defense insufficient." b. i<. Oh. Yeah? = well doii''t let it happen again, Son! Them i'afin you »iiiic>k<- w tut Id atari you tHilt'luu* AikI >I0|I tlli^ llt»-ilil|£UIIH> i*iu |»itt*ltiii*. T^' Ol l» «. h\ O, G». (h> not ^-rratch th»" lliroat or tainl llu* hrralh . . . ((i«'lhj- |t|ianf-wra|4ic«L ol' coursf). NOT A COUGH IN A CARLOAD "BEST OF THE BEST" ^^^^^i^i^L^ A. SANTAELLA & CO, Office, 1181 Broadway, New York City FACTORIES: Tnmpa and Kev West. Florida *f»»*^w^^ »»■ ■ til M^^»a^^B| ■■ IMMf —#—!■■■■ ■■ ■■ ■■ ■■ ■■■ iiiiniiiniiiimiii JBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. After all nothing satisfies lihe^ a good cigar ^ RETAILERS WANT WOODEN BOXES Retailers prefer Wooden Boxes not only because they are natural salesmen but because they are also a natural ripening and mellowing agent for the cigars themselves. And they know^ that there is a valuable appeal to the smoker in the pleasant and aromatic fragrance imparted to cigars only by the Wooden Box. WHEN BUYING CIGARS Remember thjt Regardless of Price THE BEST CIGARS ARE rACXn> IN WOODEN BOXES -V ^gggiiOilOIR^i|ti^Jltyi^i|MI4U'l>^^^^^ nijjmu,0(X) no-par shares of class B stock in 1930. OSCAR VOIGHT DEAD Oscar T. Voight, former vice-president of the lith- ographing firm of Heywood, Strasser & Voight, Nev/ York, passed away on Saturday, April 2, at his home in Maplewood, N. J., following an illness of pneumonia. He was fifty-nine years old, and is survived by his widow and four sisters. AMERICAN TOBACCO ANNUAL MEETING OPTIMISTIC N INCREASE in Federal taxes levied upon the tol)acco industry, which already pays more • than $500,000,00*0 annually to the Government, is unlikely, it was reported at the annual meet- ing of the stockholders of the American Tobacco Com- panv, at 75 Montgomerv Street, Jersey City, on April 6. More than 2,523,000 votes out of a total of 2,526,422 votes present or represented at the meeting were cast to re-elect the present Board of Directors and to elect one new director, Edmund A. Harvey, to succeed the late Charles A. Penn. Paul ^I. Hahn, assistant to the president, presided. Contrary to a forecast given some prominence, there w^as no criticism expressed by any stockholder in person or by proxv against pavment of a l)onus of approximately $850^000 in 1931 to George W. Hill, pres- ident, which, with his fixed salary of $168,000, gave him an income in that year of more than $1,000,000. One stockholder, W. S. Cowles, of Farmington, Conn., inquired of Mr. Hahn whether payment of such a large bonus might not be misunderstood by tobacco growers who are receiving a very low price for their products. Mr. Cowles said that he did not think ''the growers will understand how officers of tobacco com- panies can draw big bonuses when low prices are paid for crops." In reply Mr. Hahn said: "The operations of the American Tobacco Company, or of any other company, has nothing to do with the price paid to growers. The limited prices paid to growers is due to the fact that about 65 per cent, of the crop that formerly was ex- ported is no longer exportable because of bad economic conditions abroad. The payment of bonuses to officials has no relation whatever to the prices paid for crops." In referring to the question of Federal tobacco taxes, Mr. Hahn said that the industry generally does not look for any further levy on cigarettes and other tobacco products. "The disposition at Washington," he said, "is to feel that any attempt to impose further taxes on these products would result in decreased consumption which would mean less rather than more revenue for the Gov- ernment. The tobacco business is now paying $500,- 000,000 a year in taxes, and Government taxation ex- perts feel that it is the ultimate possi])le figure and no attempt should be made to push it higher lest tlie pur- pose of the tax be defeated." In a statement to the stockholders read at the meet- ing, George W. Hill, president, said : "Again it gives me great pleasure to thank the stockholders of our company for the overwhelming ap- proval and encouragement which, by their letters and proxies, they have given to the efforts and policies of our management and personnel. {Continued on page 15) 52nd year THE TOBACCO WORLD AprU 15, 1932 MISAPPLICATION OF CLOSED BANK'S FUNDS CONNECTED WITH LOCAL CIGAR COMPANY LEXAXDEK ]). KOBIXSOX, vice-president and treasurer of the closed Xortlnvestern Trust Corapanv, in tliis city, was held in $45,0(X) bail on April 12 by Magistrate (^oward, charged, among other things, with conspiracy to de- fraud the stockholders of a cigar company of this city. The bank is said to own all the stock in the cigar com- pany. He will have a further hearing on Ai)ril 15, at which time, according to Assistant District Attorney Franklin E. Barr, warrants will have l)een served on the president and vice-president of a cigar company here, which concern is said to be owned by the bank. The defendant is already under $25,00() bail, charged with making false reports about the institu- tion's financial condition to the State Banking Depart- ment. ''We have not got two of the defendants here," Mr. Barr told the magistrate. *'As the charge is con- spiracy, 1 will ask you to fix the hearing for Friday morning. In the meanwhile, we hope to get the two other defendants. **The situation is this: The defendant present, in his official capacity, continually lent sums of money to the cigar company, of whicli the other two defend- ants are president and vice-president, the sum amount- ing in eight years to about $75(),0(K). "The amount charged in the warrants is only $492,000, which is the amount that comes within the Statute of Limitations. The bank owned many shares of the cigar company stock, and the defendant would continually re-buy this stock in amounts of from $50,000 to $100,006 at a time wlien the bank already owned it. '*He allowed the cigar company to overdraw its checking account at the bank for enormous sums, and then give its note for the amount of the overdraft. This overdraft amounted, when the bank closed, to $47,500." ^Ir. Barr also charged that the defendant gave to the vice-president of the cigar company a proxy to vote the bank's stock at the stockholders' meeting, and that, as a result, the cigar company turned over assets of $128,000 to its president. Barr alleged it was illegal for the bank to operate the cigar company. NEW MURIEL SIZE AT THREE FOR TEN CENTS LARGE ORDER FOR DEISEL-WEMMER Lima officials of the Deisel-Wemmer-Gilbert Cor poration have announced receipt of an unexpected order for 3,000,000 cigars of a special brand manufac- tured by the company in its l.ima district, whicli in- cludes the plant in Findlay. The order, it was stated, was received from one of the largest Eastern distributors of cigars and tobacco products. AVork on the contract has already begun in the Tjima and St. Mary's factories, and will be started shortly in the Findlay plant, it is understood. This will insure additional work for a number of persons until the cigars are made. The order was unexpected and changes the manu- facturing program for the year, officials stated. It was explained that the company's factories have been oper- ating steadily and are expected to continue to do so. Plants operated by Deisel-Wemmer-Gilbert in the Lima district include two in Lima, one each in Findlay, St. Mary's, Delphos, Van Wert, and Wapakoneta. The New Size "Muriel" Babies In keeping with the trend of the times the P. Lor- illard Company announces the addition of a new size in their "Muriel" line of high-grade cigars, to retail at three for ten cents, and which will undoubtedly prove a winner with those who desire a short cigar containing high-grade tobacco. The new size is known as the "Babies" size, and is a panetela-like shape with a mild Havana filler which makes a pleasing smoke. The new size is just being introduced in New York and other markets and the retail trade is showing con- siderable enthusiasm over the fact that it seems to fill a real need and makes a readv seller. The "Muriel" is the first nationallv known brand with a three-for-ten-cents size and i"etailers can hardly go wrong in stocking this new size and capitalizing on the popularity of the "Muriel" brand. RECEIVER FOR INTERNATIONAL MATCH Estimating that alleged mismanagement by the late Ivar Kreuger will cost the International Match Corporation $250,0(K),000, Federal Judge Francis G. CafTey, New York, on April 13th, appointed the Irving Trust Company receiver in equity for the Match Corporation. An answer filed by Frederick W. Allen, President of the Match Corporation, consented to the appoint- ment of a receiver. The Court directed the creditors and stockholders to show cause at a courtroom in the Woolworth Build- ing on May 16th why the receivership should not be made permanent. April 15, 1932 Say You Saw It in The Tobacco World 52nd year ^ve switched to CAMELS because they're FRESH'' O ^NCE a woman smoker has been intro- duced to Camels it's a case of love at first light. The first cool, mild fragrant puflf of smoke from this fresh cigarette is sufficient to win her to Camels' ever-growing ranks of friends. Maybe it's because her throat is more sen- sitive than a man's that she's so quick to grasp the difference between the mildness of this air -sealed cigarette and the stinging bite of parched or toasted tobaccos. Blended from choice Turkish and mild, sun- ripened Domestic tobaccos. Camels are made with just the right amount of natural moisture and kept that way until delivered to the smoker by the Camel Humidor Pack. These cigarettes are never parched or toasted. The Reynolds method of scientifically applying heat guarantees against that. If you haven't smoked Camels lately, per- haps you've been missing something. Why not switch over for just one day .^ After you've known their rare, throat- easy mildness, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY Winston-Salem, N. C. *'Are you Ltstenin'?" R. J. REYNOLDS TOBACCO COMPANfY'S COAST -TO -COAST RADIO PROGRAMS Camel Quarter Hour — Columbia Broadcasting System Prince Albert Quarter Hour National Broadcasting Company Red Network See radio page of local newspaper for time Do« 7 remote the Camel HumidorPack— it is fro- tection against perfume and powder odors, dust and nerms. Buy Camels by the carton for home or office. The Humidor Pack keeps Camels fresh © 1932, R. J. Reynolds Tobacco Company Camels Made FRESH — K«>|»< FRESH 52nd year THE TOBACCO WORLD AprU 15, 1932 April 15, 1932 Say You Saw It in The Tobacco World 52nd year if 4 I MIA HABANELLO DISTRIBUTION INCREASING EORGE ZIFFERBLATT, of George Zifferblatt & Company, manufacturers of the "Haba- nello" brand, returned last week from a swing around the Middle West, including Omaha, Neb Mr. Zifferblatt reports a very successful trip, finding "Habanellos" repeating nicely wherever placed and made several highly satisfactory new connections. The ''Habanello" sales in general are highly satis- factory in view of present conditions throughout the Mr. Loovis, of F. A. Davis & Company, Baltimore distributors of the ''Habanello," was a visitor at the factory last week, and reports a pleasing outlook for * ' Habanello ' ' sales for this year. , , tt u The various sales representatives of the Haba- nello" factory are busy working their various terri- tories, and a nice volume of orders are coming m steadilv. CINCO WINS BOWLING CONTEST The "Cinco" bowling team came out winners in the Cigar Manufacturers' Bowling League of Philadel- phia in the play-off last week with the *' Bayuk Phillies team. . . ., The "Bayuk Phillies" team were winners m the first half of the season, with the '^Cinco" team coming out on top in the second half. In the play-off between the two teams the **Cinco" team finished with a six- point lead over their opponents and were declared the winners. Plans for the annual banquet of the league are progressing, but definite arrangements have not been made as to the time or place of holding this interesting event. BRENEISER ADDS "ROYALIST" TO LINE The Breneiser Tobacco Company, Reading, Pa., well-known distributors in that territory, have taken on the ** Royalist" brand, product of Grabosky Bros., Incorporated, and it is anticipated that a splendid dis- tribution on this brand will be obtained in this territory under their able supervision. Harry Zears, ''Royalist" factory representative, is doing promotional work in Virginia, working through William Deiches & Company, Baltimore and Washing- ton distributors, who are making a splendid showing on this brand. BAYUK FACTORY EXPERIENCES IMPROVE- MENT T BAYUK Cigars, Incorporated, headquarters there is a spirit of optimism prevailing due to the fact that sales of Bayuk brands are show- ing definite signs of improvement throughout the country, which is one of the rewards gained by pro- ducing only quality merchandise at the right price. F. W. Layton, of F. W. Layton & Son, Bayuk dis- tributor for the Pennsgrove and Southern New Jersey territory, stopped in at Bayuk headquarters last week and reported an improved demand on "Havana Rib- bon" and "Bayuk Phillies" in his territory. Roy Barkman, territorial manager for the State of Michigan, was at headquarters and plans w^ere laid for further increases in sales throughout the Wolverine State. . .^ ^ F. B. Mueller, Indiana territorial manager, visited Bayuk headquarters, and, after returning to his tern tory, is sending in some very nice orders for Bayuk cigars. . ^ t^ i Samuel Bayuk, chairman of the board of Bayuk Cigars, Incorporated, sailed from New York on Tues- dav, accompanied by Mrs. Bayuk, on the SS. "Vol- cania," on a tour of European countries. TRADE NOTES N. E. Nichols, United States representative of the "Belinda" factory in Havana, visited the trade last week. E. W. Rosenthal, of Gonzalez & Sanchez, Tampa, called on the M. J. Dalton Company last week. The Gonzalez & Sanchez brand enjoys a steady demand here. Frank Swick, of Simpson, Studwell & Swick, Ltd., was a visitor in town last week and placed his **Chuk- kers" cigarettes with John AVagner & Sons. "Chuk- kers" are a custom-made cigarette retailing at twenty for twenty-five cents. John Wagner & Sons have al- ready made several good placements on this brand and have received some quick repeat orders which would seem to indicate a favorable reception by the smokers of this high-grade cigarette. oK'amehicA! More for your money than in any other cigarette! You get many extras in LUCKY STRIKE as a re- sult of that famous and exclusive "TOASTING" Process. Extra Goodness — forced in when certain harsh irritants are forced out. Extra mildness, mellow-mildness — resulting from the purg- ing and purifying of every tobacco leaf. Extra Deliciousness — from the world's choicest tobac- cos— the Cream of many Crops. Extra Mellow- ness— from the use of modern Ultra Violet Rays. It*s toasted Your Throat yret»ctlow — ngolnf t irrltotlow—egointt laufh Copr . 1935, TIw Ainrrlran Tobarco Co. O. K. AMERICA TUNE IN ON LUCKY STRIKE -60 modern minutes with lh< ttmrld'i finett dance orchettras and Walter Winch«ll. whose gouif* of today become* the new$ o/ tomorrow, every Tuetday, Thursday and SatMrday et'ening over N.B.C. networks. 8 52nd year THE TOBACCO WORLD April 15, 1932 TRADE JOTTINGS. Jack Hood, the flving salesman, and Carl Swisher, of John Swisher & Son, Jacksonville, Fla., called on Yahn & McDonnell last week. Their "King Edward" five-cent cigar has a good sale in this territory. Yahn & McDonnell are having an astonishing de- mand for "Wings" cigarettes, prodnct of the Brown & Williamson Tobacco Corporation, and which were re- cently rednced in price to retail at ten cents a package. Abe Caro, "Optimo" representative, was a visitor last week and expressed himself as highly pleased w^ith the showing liis brand is making in this territory under the able distribution of Yahn & McDonnell Cigars. Mr. Loovis, of F. A. Davis & Sons, and Mr. Rec- quard, of the Neudecker Tobacco Company, both dis- tributors, of Baltimore, Md., were in town last week and made a friendly call on Yahn & McDonnell head- quarters. Sol Korn, of the Continental Cigar Company, was a visitor last week at Yahn & McDonnell headquarters, 617 Chestnut Street, in the interest of his "Martinez Chums ' ' and ' ' Cuban Crop ' ' brands. Mr. Korn reports business on his brands in splendid demand. I. Jacoby, who formerly operated a cigar store on Seventh Street above Chestnut, has moved to 736 Arch Street and is now operating under the name of the Pannonia Cigar Company and manufacturing and re- tailing the "Pannonia" and"Altrevido" brands. J. C. Howard, who was recently appointed sales director of Schwal), Davis y Ca., to succeed the late Leon Schwab, who died suddenly in Los Angeles on March 11, was a visitor in Philadelphia hist week call- ing on Jolni Wagner & Sons. John Wagner & Sons' "Monticello" brand is in- creasing its sales far beyond expectations since the ad- vent of the new sizes and shapes under this label and which are replacing the "Carl Upmann" brand in the Wasrner line. Alvaro M. Garcia, of Garcia y Vega, called on John Wagner & Sons and spent two very pleasant days in town. "Garcia y Vega" sales are making a splendid showing in this territory under the supervision of Ben Lumley, working through John Wagner & Sons, local distributors. William Fox, at one time associated with the Amer- ican Cigar Company, Louis King Cigar Company and George Ziiferblatt & Company, has opened a cigar store and manufactory at 1041/2 South Sixteenth Street, where he is manufacturing and retailing the "Ken- more" and " Jancy" brands. The " Jancy" retails at five cents. FIFTH AVENUE WENT NAUTICAL EVERAL hundred thousand New Yorkers got the thrill of an ocean voyage without the ex- pense from the nautical window advertising "Chesterfield" cigarettes at the northeast cor- ner of Fifth Avenue and Forty-second Street, New York. It drew a larger crowd than the emergency excava tions on a burst water main in the middle of Fifth Ave- nue. Experts in crowed psychology hold that anything which can deflect the rapt gaze of New Yorkers from excavating activities must contain a rare appeal. The features of the display were the realistic at- mosphere of the wireless operator's office and the sea- scape seen through his porthole. There appeared an- other ship slowly heaving by on turl)ulent blue-green waves. Action was the keynote. "Sparks," the oper- ator, was keen and tense, with headphones clamped in place and cigarette in hand. The ocean moved, the other ship moved, and the whole scene tingled with sun- lit activity. A sailor remarked that he could almost ' ' smell the salt. ' ' The advertising message, with a terseness in keep- ing with the brisk air of the operator, said: "Listen- No Use Wasting Words— They 're Milder— They Taste Better— They're Pure— They Satisfy." AMERICAN MACHINE & FOUNDRY REPORT Report of American Machine & Foundry Company and subsidiaries for year ended December 31, 1931. shows net profit of $1,716,058 after interest, deprecia- tion. Federal taxes, etc., equivalent to $1.71 a share on 1,000,000 no-par shares of common stock. This compares with net profit in 1930 of $2,931,110, equal, after dividends paid on 7 per cent, preferred stock which was called for redemption on August 1, 1930, to $2.82 a common share. Including $122,471 proportionate interest in net l)rofit of International Cigar Machinery Company not declared as dividends, nor included in surplus, total ne< profit for 1931 available to American Machine & Foun- dry Company, was $1,838,529, or $1.83 a share, on com- mon, against $3,064,234, or $2.95 a share, on common, after preferred dividends, in preceding year. ^ Current assets as of December 31, last, including $3,304,886 cash and marketable securities, amounted to $4,715,386, and current liabilities were $780,065. This compares with cash and marketable securities of $3,399,080, current assets of $5,022,606 and current lia- ])ilities of $343,955 at close of preceding year. DENBY ADVERTISING DOUBLED H. Fendrich, Incorporated, one of the largest inde- pendent cigar manufacturing concerns in the country, is manifesting its belief in advertising and in the future of the cigar industry by inaugurating a newspaper ad- vertising campaign on their "Charles Denby" brand which is double its 1931 campaign. D. F. McCarthy, secretary of the company, said: "We are concentrating our advertising in newspapers because newspapers have shown their business ])uilding power better than any other medium during the last year. With the strong trend toward five-cent cigars which is reported from all parts of the United States, we expect a large increase in our 'Charles Denby' sales this year." April 15, 1932 THE TOBACCO WORLD 52nd year WITH <:2/f£. . MILLIONS "The smoke is smooth. It's mild. No harsh- ness." The first puff of a CHESTERFIELD telegraphs that. Better tobaccos — that's the reason. Ripe, mellow tobaccos — Turkish and Domestic. Not just blended, but cross-blended— that is, one kind of leaf blended with another kind — not merely mixed with it. And just enough Turkish tobacco to give the right aroma — to make the taste better. The paper is the purest that can be made. It burns without taste or odor. Every care is taken for just one purpose — to make the best cigarette that can be made. Try them. They're clicking with Millions. THEY'RE MILDER • • THEY'RE PURE • • THEY TASTE BETTER . • /Jzey ^^CCCj/u 10 52nd year THE TOBACCO WORLD April 15, 1932 April 15, 1932 Say You Saw It in The Tobacco World 52nd year 11 News From Congress _ 'AND Federal Departments HARP ATTACK upon the revenue bill passed by the House of Representatives by Secretary of the Treasury Ogden L. Mills at the opening of hearings before the Senate Finance Com- mittee April 6 may lead to further consideration of the one-sixth increase in the taxes on tobacco other than cigars. Criticising the hasty action of the House in increas- ing the corporation tax rates to 13y2 and 15 per cent., discontinuing the exemption of dividends from normal income tax, repealing the net loss provisions and im- posing high rates of tax on stock transfers and estates. Secretary Mills suggested that if changes are made in these provisions it will be necessary to develop other ways of securing revenue and again laid lief ore the committee the original Treasury proi)osals of last De- cember, including the increase in tobacco taxes. The bill passed by the House, he charged, will serve only further to depress business and industry. "The cumulative effect of all these provisions is very great," he pointed out. ''They tend to converge the full weight of each of them upon capital actively employed in busi- ness, and to discourage the normal How of cai)ital into industrv and commerce at a time when business men are hesitant and industrv stagnant. Their coml)ined re- strictive effect magnified by the deadening influence of the depression will in my judgment tend to retard busi- ness recovery. "What we want to accomjilish above all else at the present time," Mr. Mills declared, "is to break down the vicious circle of deflation of credit, industrial stag- nation, falling prices and loss of ])urehasing ])ower. To put men to woi-k, capital must go to work. Credit must be sought and freely offered. But capital must see some chance of profit to compensate for the risk. Busi- ness men will not borrow and banks will not lend unless the enterprise offers some fair prospect of return." The bill passed bv the House, the committee was told, lacks $209,000,000 of balancing the budget. To make up this difference, as well as to offset any reduc- tions which might be made through committee changes, he recommended the Treasury program, in which $58,000,000 from increased tobacco taxes is included. That program, he declared, would raise $1,241,000,000, which is the amount needed to balance the budget by the close of the fiscal year 1933. The bill reported by the House Ways and Means Committee, incorporating the manufacturers' sales tax, Mr. Mills intimated, was preferable to the measure finally passed by that body. The committee bill, he pointed out, raised $1,246,000,000, which would have given a surplus of $5,000,000, while the l)ill passed by the House provides only $1,032,000,000. "While the recommendations of the committee did not conform to those originally made," he commented, "nevertheless the bill was acceptable. The great merit of the bill as it now stands is that it raises $1,030,000,000 of new revenue and that, from the standpoint of the From our iiVASHiNGTON Bureau 622Albee Builoing Treasury, is a most vital consideration. It is, how- ever, susceptible to improvement in a number of impor- tant respects." Committee hearings on taxes will run through April 22, with any discussion of tobacco taxes which may occur taking place between April 15 and 21, when the miscellaneous taxes are under consideration. There will also be considerable discussion of restoration of the manufacturers' sales tax, but this, it is believed, could not be forced through. [f3 ft] It} New Parcel Post Rates Effective October 1 Changes in parcel post rates authorized March 15 by the Interstate Commerce Commission will be put into effect October 1 next, it has been announced by the Post ()f!ice Department. The revision given the approval of the Commission contemplates increases in the rates to nearby zones and reductions in those to the more distant areas where express competition is keener. The effect of the changes, it is estimated, will be to increase the general level of rates by 5 per cent., which will give the depart- ment approximately $7,500,000 additional revenue an- luially. It was originally contemplated that the new sched- ule should be made effective July 1, the Interstate Com- merce Commission having recommended that the date l)e fixed sufficiently far ahead to enable business houses to accommodate themselves to the changes. With this in mind, the Postmaster General sought the views of the various industries which are heavy users of the parcel post service as to whether that date would enable them to make necessary revisions in their price lists and catalogues. Conferences on the question develoi)ed that the mail order houses, as a group the heaviest patrons of the service, issue their catalogues in the spring and fall, and it was decided to postpone inauguration of the new schedules until October 1. Ct3 Ct3 Ct3 Bill Prohibiting Price-Cutting Introduced Price-cutting which has a dangerous tendency to mislead or deceive or in any way to wrongfully impose upon or prejudice the purchasing public, unduly under- mine or lessen or prevent competition or wrongfully injure a competitor, or create a monopoly in any line of business of commerce, would be made illegal under the terms of a l)ill introduced in the House of Repre- sentatives by Congressman Crail, of California. The measure was introduced at the request of a prominent independent merchant of California who has made a study of chain store legislation, Mr. Crail ex- plained. The bill will be pressed, and the Congressman will ask the Committee on Interstate and Foreign Com- merce to hold hearings on it in the near future. RALEIGH AND WINGS CIGARETTES REDUCED PRICE BROWN .WUii«.«.»To.»CCOCOWO«AT.«« 1600 r«l HiJJ S.r^ M«ch9.l932. «A770JV '«• RALEIGH Cigarettes From t8.«« »*> **•* Per Thousand . ■■..■..■>.>.pHcC.i'>!:?!.°". arc P'eased ro **' thousand I YOUR JOBBER CAN SUPPLY YOU BROWN & WILLIAMSON TOBACCO CORP., LOUISVILLE, KY. 12 52nd year THE TOBACCO WORLD AprU 15, 1932 April 15, 1932 Say You Saw It in The Tobacco World 52nd year 1*1 i PHIL M. PHULOFAX SAYS OPTIMISM WILL HELP YOUR BUSINESS HIL M. PHULOFAX, D. B. L, whose long ex- perience in the retail cigar business and whose association with Bayuk Cigars, Incorporated, of Philadelphia, have given him a real insight into both the cigar business and human nature, and whose sales messages to retailers are regularly fea- tured on the advertising pages of this publication, re- cently discussed one very important point in the retail- er's code with one of our representatives. ** Optimism has been much talked of lately, but now's the time to do something about it," said Phulo- fax. *'0f course it's not always so easy to be a Polly- ana, but you'll find, if you think it over, that maybe we have helped contribute to the general low spirits. ^ If we spend our time peeping around every corner looking for prosperity, we'll probably see only the gloom de- mons that lurk in dark places. What can we do about it now? *' 1. Be an optimist. You know the old definition of the optimist and the pessimist— the optimist sees the doughnut and the pessimist sees the hole. There's a lot of real dough in the cigar business these days, but you'll never get a taste of it if you don't look beyond the hole. Keep yourself and your stock looking happy. No boxes and shelves almost empty as though you were afraid to buy a single new box before you had sold the last smoke. Glass bright and cellophane sparkling— but remember none of that will do much good unless your face shines, too. *'2. Consider everybody you meet as one concrete part of that big, vague public opinion. When a man asks you how business is, a disgruntled reply won't help feed the cash box. 'What's the matter,' thinks he to himself, 'business bad, not selling many cigars, no- body's selling anything, whole country's in a swell mess, better hang on to my spare cash, guess I don't need that half dozen cigars I usually buy'— and down goes a quarter and out stretches a hand for change. "3. Above all, don't worry. If worry sticks out all over you like a week's growth of beard, friend cus- tomer is bound to notice it. Did you ever try to please a gal while you were wearing a long face ? Well, every sale is a pretty coy maiden these days and takes some wooing. But they'll fall if you go about it the right w^ay. So give your blues a good swift kick out the back door, then lockand bolt it so they'll never get in again." SCHULTE PROFIT SHARING CONTRACT Stockholders of the United Profit Sharing Com- pany, at their annual meeting last week, approved a contract with D. A. Schulte, Incorporated, giving the latter company a two-year option to purchase up to 50,000 shares of United Profit Sharing common stock at $1 a share. This action was taken in connection with the giving of United Profit Sharing coupons with purchases in the Schulte Cigar Stores, which was recently inaugurated. SCHULTE RETAIL SALES Schulte Retail Stores Company and subsidiaries, in their consolidated income account for 1931 show gross sales of $25,763,521, compared with $28,487,201 in 1930. After deduction of expenses, depreciation and loss on securities sold and preferred dividends, deficit amounted to $1,068,509, compared with $14,449 last year. MODEL TOBACCO CAMPAIGN MAKES GOOD RECENT issue of Printers' Ink, commenting on the current advertising campaign on "Model" smoking tobacco, states that the fig- ure of "Monty," "the man with the walrus mustache," is rapidly becoming famous and is probably destined to take a place in the advertising hall of fame along with the Smith Brothers, Aunt Jemima, the ' ' Time to Retire ' ' boy and the many other well-known advertising characters. If you have traveled much you have seen him. Once seen, he isn 't to be forgotten. His amusing face and mustache have been the feature of a series of out- door posters advertising "Model" smoking tobacco, product of the United States Tobacco Company, since April last year. The United States Tobacco Company makes, through a subsidiary, "Dills Best," another smoking tobacco. This brand sells for 15 cents a package, con- taining one and one-half ounces. This is a compara- tively high price today — too high for a very large part of the pipe-smoking public. Several years ago the com- pan;^ sensed that the price appeal in this field was be- coming most important. So it was decided to go after those smokers who didn't want to pay 15 cents. "Model" was introduced and distribution obtained for it throughout the country, particularly north of the Mason and Dixon line and east of the Mississippi. Last year the company decided that it was time to advertise "Model." Outdoor poster locations were selected in about 700 towns and cities. Locations were chosen carefully in sections where it was thought the most prospects would be reached. Many of the loca- tions were in factory districts. The company realized that there wasn't a great deal that could be said about "Model" that hadn't been said many times before for other brands. The two principal appeals w^ere price and quality. Some way must be found to present these old but vital sales points in a striking and dilTerent manner. The posters, it was agreed, must be unconventional so that they would stand out from the crowd. During the preliminary experiments a trade char- acter was born, the man with the walrus mustache, who seemed to possess a num))er of interesting attributes. The company officials liked his comical appearance so much that he was made the focal point of a series of posters. He has become the "Model" trade character, and there are indications tliat he is winning his way into the hearts of consumers and the trade. He is a distinctive man in appearance. He is pic- tured in the posters in all sorts of settings. He talks to motorcycle cops, baseball players, w^aiters — any one who will listen. And his audience is eager to hear his words, although they are few and although they are always the same. "Did you say 10 cents!" asks the cop, waiter, or baseball player. "Yes, I said 10 cents!" the quaint "Model" char- acter replies. That is all there has been to the copy so far. The same question and answer repeated on every poster but under different circumstances. Old Walrus Mustache is a king of yes men. He uses the one affirmative an- swer to the questions of his new-found friends who gel a whiff of the smoke from his ever-present pipeful of ' ' Model ' ' tobacco. This year the character will enlarge his vocabulary, but everything he says will be preceded by the word "yes." The April advertisement, for example, shows him enjoying the fragrance of a rose and remarking, Through The Years Wooden Boxes Are A Mark Of Brand Prestige Majiy brajids of established prestige have never been packed in anything but wooden boxes throughout the years since cigar smoking was first introduced in this country. Critical smokers always demand their favorite cigar in a wooden box. Experienced manufacturers know the value of the porosity of wood as a ripen- ing agent for their product. They are fully aware of the fact that it assures their customers of a mellow and satisfying smoke, when properly conditioned. The Research Department of AUTOKRAFT BOX CORPORATION has been untiring in its efforts to produce the highest grade package that will enhance tobacco values to the utmost point of satisfaction. After years of experiment AUTOKRAFT BOX CORPORATION is still of the opinion that wood — and only wood — is the natural container for cigars, and the most beneficial material from which to fabricate a package for such use. The new AUTOKRAFT wooden cigar box represents every new feature of cigar box manufacture — a package that meets every requirement of the cigar manu- facturer. Phiia., Pa AUTOKRAFT Hanover, F'a. Cincinnati, Ohio LIMA Kansas City, Mo. 10]1\ CORPORATION J^^^;^; Ohio Detroit, Mich. Service Wheeling, W. Va. FATHER OF SAMUEL BAYUK DIES HE MANY friends of Samuel and ]\Iever Baviik, of Bayuk Cigars, Incorporated, will regret to learn of the death of their father, Moses Bayuk, who passed away at his home in Norma, N. J., on March 31 in his eighty-third year. Although he was never associated with the cigar industry, Mr. Bayuk was known to many members of llie trade through his sons. ^Ir. Bayuk was the author of several books on pliilosophy and had been connected with tlie civic activities of the Norma colony, which he lioli)ed to establish, for more than thirty years. ^Ir. Bayuk was a student at several colleges in Russia before coming to this country, and was by pro- fession a lawyer. He will be sadly missed by his sons and his many friends in the community in which he lived. *' Yes, I said fragrant !" Other similar advertisements will feature such words as **cool," ''mild," etc. These posters are to be alternated with those bearing the orig- inal question and answer text. Miniature posters in colors have been supplied to dealers for store display. It has been difficult to keep these up to date, because it has been necessary to change them frequently. Therefore some especially designed black-and-white cards are now being featured by the dealers. These feature the man with the walrus mus- tache, but are different from the regular large posters. The United States Tobacco Company is exception- ally well pleased with the results of this outdoor cam- paign. Sales increases have been reported in many ter- ritories, and much of the credit is given to the popular- ity of the new "Model" trade character. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH, Wheeling, W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Preiident JULIUS LICHTENSTEIN, New York, N. Y Vice-Preiident WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice- President GEORGE H. HUMMELL, New York, N. Y Vice-President H. H. SHELTON, Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City .. Second Vice-President LEE SAMUELS, New York City Secretary -Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN, New York, N. Y First Vice-President ABE BROWN, 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President 14 52nd year THE TOBACCO WORLD AprU 15, 1932 RETAIL STORE PROBLEMS ► L.I1.1V10 I So many 'persons are unaware of the many aids to business ichich have been carefully prepared by the United States Government, and so many of those -ivho are aivare of these facilities fail to take advantage of them, that ive are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) Factor of Convenience Stores prosper in certain lower East Side loca- tions in New York because a city block there houses more customers than many prosperous towns.^ Neigh- borhood stores thrive in well-populated suburban dis- tricts and indicate that the density of population is one point that must be given attention, in that it rep- resents in numbers the possible buying power of the territory. Convenience, which the American people demand, is one of the largest factors in trading, and though this truth is aligned more properly with the favorable location of a store, it can not be entirely lost sight of in the measuring of a market. Accurate Knowledge of Needs It has been truthfully said that the measure of merchandising effectiveness is the degree of adjust- ment between supply and demand. This can be se- cured only by an accurate knowledge of the needs of the people composing the store's market. Two ways of basing this demand on fact rather than mere opin- ion are the 'Svant-slip" system and "comparison shop- ping." Each of these systems serves its purpose equally well, but in most cases one follows the other. The former serves as a guide and a constant check on the accuracy witli which the store has anticipated the community needs, l)oth as to quantity and quality of merchandise; while the latter example, "comparison shojjping," aims to ascertain what competitors are doing both in merchandising effectiveness and in serv- ice for the customer. In studying the population it is desirable that the market analysis cover not oidy existing conditions but also future possibilities and probabilities. A growing section gives promise of expansion of trade, while a city decreasing in population from year to year is ordinarily unattractive to the prospective investor. Purchasing Power A market in its broadest sense means demand, or, in phraseology of economics, effective demand — that is, a demand with the compelling force of purchasing power behind it. One can readily confuse a readiness to purchase witli ability to |)nrchase, but obviously there is a vast difference between tlie two. An analysis of the buying power of the community may show in relief this variance and will definitely aid merchants to determine whetlier they are selling the quantity of merchandise that llie community should absorb. Fur- thermore, it will warn tliom against an excessive over- head expense in the nature of advertising and display, * This example leads us directly to the question of store location, and it will be of interest to the reader to study the section entitled "Retail Store Location," which will appear later. wliich may be entirely out of proportion to the gross sales readily expected from the community. There are three main sources of income within a community — the factories, the farms, and the mercan- tile houses. Most attention is given to the first two classes, but in general the most desirable community for a retail business is one which is not entirely de- pendent upon either class. There are numerous factors concerning the indus- tries in a community that should be studied in regard to their effect upon the total purchasing power. Just as in the analysis of population, so in the study of the industries the long-time view^^oint must be taken. Diversification of Industries The diversification of industries is important in relation to the effect upon total purchasing power, especially in cases where a periodical depression in one type of industry may appear. It is obvious that the purchasing power of a community whose popula- tion for the most part is employed in shoe factories is too greatly dependent upon the well-being of this industry. Should a depression occur, then practically the entire buying power of the community is threat- ened, whereas, were the purchasing power derived from four or live separate sources the effect would not be so marked. Valuable information may be gathered by deter- mining the number of factories in the community and the number of employees in each, according to whetlier they are men, women, or children. The factories may be further classified into groups according to wages, to show the total number of factory workers at dif- ferent average wages. Then, possibly a summary can be made showing the total number of families and the size and average income of each. The family in which there is a number of wage earners will proba])ly have more to spend for articles other than necessities, l)e- cause it is usually cheaper for the members of the family to live at home than in a boarding house. Aspects of Labor Situation Many aspects of tlie labor situation in the past may be indicative of what is to happen in the future. The situation in regard to periodic strikes is of inter- est to any retailer who sells to laborers. In times of strikes a* great financial burden has often been car- ried by the merchant, through the extension of credit to the workmen. Long-period wage schedules or agree- ments have a tendency to stabilize the market. The continuity of operation of the factories affects to a large degree the purchasing power of the employees and is itself affected by the character of the industry (whether seasonal or operating uninterruptedly throughout the year). Condition of Markets for Industrial Products Much thought might be given to the condition of the markets for the products of the industries, for the very existence of the latter depends upon the possibil- ity of marketing their output. Some indication of the stability of the industries may be given by their ability to make money, though this should not be the sole cri- terion, because many companies make money and ap- (Continued on Page 16) April 15, 1932 THE TOBACCO WORLD 52nd year 15 21 CIGARETTES SMOKED FOR EVERY CIGAR ORE than twenty-one cigarettes were reached for in this country last year for every cigar that was smoked, according to calculations based on figures compiled by the United States Bureau of Internal Revenue. These figures indicate how decided is the preference for cigarettes in this country and it is pointed out by authorities in the indus- try that removal of impurities through the toasting process including the use of ultra violet rays has been one of the chief factors in increasing this preference. Less than twenty-five years ago there were about as many cigars smoked in the United States each year as there were cigarettes. However, the number of ciga- rettes reached for has increased greatly during the pasi quarter of a century, so that in 1931 there were 113,449,049,000 cigarettes produced in the country as compared mth 5,318,892,000 cigars. AMERICAN TOBACCO ANNUAL MEETING (Continued from Page 3) **Our company now has nearly 40,000 stockholders. To eacli of them I wish to send this message. You are partners in a great business — a business which, in 1931, showed America that courage and hard work will stand up against the attacks of an unprecedented depression. There is no reason to believe that the same courage, the same hard work, should not withstand a continuance of those same conditions in 1932, if that should be what the year 1932 has in store for American industry. ** Government figures, commencing about the mid- dle of last year, show a decline in public consumption of cigarettes, due principally, I believe, to a shift on the part of a small percentage of smokers to other forms of tobacco. I am glad to tell you, however, that your company is, according to our estimates, continuing to increase its percentage of the total cigarette busi- ness, and continuing to increase its sales of manufac- tured tobacco. We go into 1932 with the same confi- dence with which we have gone into previous years." The new Board of Directors consists of: Richard J. Bovlan, John A. Crowe, Q. Huntley Gibson, Patrick II. Gorman, Paul M. Hahn, Tullis T. Harkrader, Ed- mund A. Harvey, James B. Harvie, George W. Hill, James E. Lipscomb, Jr., Charles F. Neiley, William H. Ogsburv, Fred B. Renter, Frank V. Riggio, Vincent Riggio,*Thomas R. Taylor and William E. Witzleben. GENERAL CIGAR DIVIDEND Directors of the General Cigar Company have de- clared the regidar quarterly dividends of $1 on the common stock, payable May 2 to stockholders of record April 16, and $1.75 on the preferred stock, payable June 1 to stockholders of record May 23. ALLES & FISHER EARNINGS Alles & Fisher net profit in 1931 amounted to $120,640 after depreciation and taxes, equivalent to 83 cents a share on 144,681 no par shares of capital stock. This compares with $264,230, or $1.78 a share on 148,153 shares in 1930. NOVOTNY INCORPORATES The Novotny Tobacco Company, New York, has been granted a charter of incorporation. Capitalization of the company is 200 shares of common stock. Target-24 sheet poster now on the boards from Coast to Coast which have received much favorable comment from dealers everywhere. Described as one of the most striking designs used in the tobacco trade in years. GENERAL CIGAR IN GOOD POSITION HE EARNINGS gains scored by this company in the third and fourth quarters of 1931, accord- ing to Standard Trade and Securities, contrast sharply with the comparative performances of other leading cigar producers, and evidence the further improvement of its relative trade position. General's total unit sales last year were less than 1 per cent, be- neath the 1930 volume. The increasing popularity of the five-cent cigar indicates that this company as a leading producer of Class A (5 cents and under) cigars is one of the few units in a position to secure future earnings gains. Earnings expansion in the latter half of 1931 was not sufficiently substantial to offset the 37 per cent, decline in returns for the first six months. In conse- quence, full year profits of $54.41 a preferred share and $5.01 a common share compared unfavorably with the $64.03 a share and $6.03 a share reported for the pre- ferred and common stocks, respectively, in 1930. Pres- ent dividend rates of $7 on the preferred and $4 on the common are considered secure. Last year this concern produced over 775,000,000 cigars, or approximately 15 per cent, of total domestic output. The preponderance of its sales is concentrated in the five-cent field, where it is represented bv the ' * White Owl ' ' and ' ' William Penn ' ' l)rands. The bulk of the remainder is sold in the medium price class under the ** Robert Burns" trade name. Distribution is ef- fected primarily through an extensive system of branch warehouses. The 1931 balance sheet revealed a sound liquid financial position, cash alone having ])een in ex- cess of current liabilities. The funded debt, which equaled $2,800,000 on December 31, 1931, matures at the rate of $700,000 annually. D. EMIL KLEIN RETURNING D. Emil Klein, head of the D. Emil Klein Com- pany, manufacturers of the "Haddon Hall" and other well-known brands, sailed for home on board the 8S. "Europa" on April 13, and is expected to arrive in New York on April 19. Mr. Klein has been in Amsterdam attending the Sumatra inscriptions. CAMEL SALES INCREASING * At the annual meeting of the stockholders of the R. J. Reynolds Tobacco Company, S Clay Williams, president of the company, stated that "Sales of our 'CameP cigarettes are improving their position in rela- tion to other brands." Directors of the company were re-elected. 16 52nd year THE TOBACCO WORLD April 15, 1932 RETAIL STORE PROBLEMS (Continued from page 14) poar to be well managed but in time of stress fail completely, as was evidenced in 1921. Habits of Daily Living The purchasing power of a locality is reflected to a large extent in daily living habits. Those families owning their own homes appear for the most part more progressive, and the fact of their investment would show a tendency toward permanence. This factor would not be of much importance in a metropolitan district because of the predominance of apartment houses, but in the smaller communities and suburban districts it is indicative in a general way of the pros- perity of the community. If the homes are not owned, an examination of the average rental compared with the average wage would play its part in determining the purchasing power. Considerations Affecting Farmers The analysis of a farming community applies to territory at some distance from the proposed store, because farmers must trade much farther from home than do factory and office workers. In a practical analysis of such a nature it is necessary to determine the approximate extent of the trade territory, both actual and potential. Concerning the farmers themselves there are many factors that maj^ be indicative of their poten- tial purchasing power. The number of farmers that own the land they till, the number that are renters, the average size of their families — all such factors as these should be informative. If the products of the farms, when it reaches the final market, is to be sold at a price within the reach of the public, the original cost must be low enough to permit the addition of all transportation charges and still leave a fair price for the farmer. Hence, rele- vant to this sul)ject is a study of such matters as the character and condition of the soil and the climate in relation to their effect upon the production of boun- tiful yields of such a quality that good prices can be secured. Marketing of his product is of vital impor- tance to the farmer, and therefore the facilities for reaching the market must also be studied. Distance of haul and shipment play a material part in the final return to the farmer. The stability of the farmer's income depends upon the success of his crops, which in turn depends upon such physical factors as the un- certainties of the weather and the ravages of insects or of plant diseases. Therefore the past can profit- ably be examined concerning the recurrence of crop failures and whether the farmers rotate and diversify their crops to alleviate the danger of complete failure. Employees in Mercantile Establishments The mercantile class of employees sometimes form a considerable proportion of the population of a city and in such case must be considered in regard to their purchasing power. Somewhat the same methods of procedure can be pursued for them as for the indus- trial class. Other special groups will be frequently found that are of sufTicient number to justify a sepa- rate analysis. In many sections, for instance, the rail- way employees form a major part of the population. Naturally, no one merchant will find it necessary or advisable to follow all the foregoing suggestions. One of the difficulties in market surveying is that the investigator may find himself involved in such a mass of detail that he w-ill become hopelessly lost. Each surveyor must decide what is of practical application to his own particular problem and must weigh the ex- pense involved against the returns to be reasonably expected. Competition Undoubtedly one of the vital elements affecting a market is competition. It is not only important to know how many competitors there are, their size and financial strength, but it is necessary to have a full knowledge of the approximate quality of their mer- chandise and the service they offer to the public. Such factors as these really constitute competition. Who the competitors are, especially those selling similar merchandise, either of a higher or lower grade, will logically present itself as the first question in the mind of the merchant. Other merchants selling a different line of goods may become competitors through the act of substitution, as is witnessed in our music stores, where the radio dealer has trulv be- come a competitor of the graphophone merchant. Com- petitors may then be classified, on this basis, into two groups, (1) direct and (2) substitute, while another grouping might readily be made by classifying them with respect to location, as those within the community and those outside. Among the outside competitors looms the mail-order business as probably the largest, but if the community is near any of the metropolitan centers a still more difficult problem of competition is presented. The character of competition varies in different communities. In some there is ** cut-throat'' competi- tion, while in others there seems to be a healthy spirit of cooperation. Generally speaking, the former type has been found to w^ork to the detriment of all par- ties and has been curtailed to a large degree. In its place is growing a more friendly spirit of cooperative action, as is shown in the case of hundreds of retail merchants' organizations now in existence. General information concerning competition is not sufficient ; it must be supplemented by more specific data concerning the individual competitor. The num- ber of competitors gives an idea of the volume of com- petition that must be met. The length of time that each merchant has l)een in l)usiness affects to some de- gree his good will which must be met in competition. The size and financial strength of a competitor reflects very truly his potentialities for the future. If infor- mation can be obtained concerning the amount of busi- ness that competitors have done during past years, then their progress can be compared with the mer- chant's own record, by which he can accurately fix his position in the market. The size of a competitor's business is important, for, generally speaking, the larger retailer has a dis- tinct advantage, provided the market will absorb his stock. He is enabled to carry a wider variety of mer- chandise, and he can do business in a more attractive manner, with advertising on a proportionate scale. At the same time, the mere fact of size proves an excel- lent advertising feature, because there seems to be a certain tendency on the part of the public to estimate the success of an enterprise by its size. The location of the store may w^ell be compared with that of competitors, for it is hard for a store to compete if it is not w^ell situated. The retail center of most cities is constantly changing, and a wise mer- chant will always keep in touch with such tendencies of the market and keep pace with them.- The surveyor will find it valuable to ascertain how^ many and wiiat lines of goods the chief competitors sellers. Some information of this nature can be ob- April 15, 1932 Say You Saw It in The Tobacco World 52nd year 17 BROMILEY ROSS PLACE ADVERTISING OF AMERICAN TOBACCO COMPANY RVING BROMILEY, vice-president, Outdoor Advertising, Incorporated, and Donald G. Ross, vice-president. General Outdoor Adver- tising Company, Incorporated, resigned from their respective companies on March 3d to open their own outdoor advertising agency, Bromiley-Ross, In- corporated. They will be located at No. 1 Park Ave- nue, New York City, and will place the outdoor ad- vertising of the American Tobacco Company. During the past twelve years, Mr. Bromiley has been responsible for many national poster advertising campaigns, including "Blackstone" cigars, and also handled the poster and paint campaigns of all brands of the American Tobacco Company and the American Cigar Company, including ''Lucky Strike" cigarettes, "Bull Durham" tobacco, "Tuxedo" tobacco, "Five Brothers" tobacco, and "Cremo" cigars. Mr. Bromiley will be president and Mr. Ross vice- president and treasurer of the new company. Mr. Ross is known from coast to coast as the dean of the outdoor advertising industry. PHILLIP MORRIS TO REDUCE CAPITAL Phillip ^I orris Consolidated. Incorporated, is call- ing a special meeting for April 5th, when stockholders will be asked to approve a plan for reducing the au- thorized capital and cutting the number of outstanding common shares in half. The plan calls for reducing the present authorized 146,500 shares of $25 par 7 per cent. Class A stock to 125,000 authorized shares, and cutting the present 1,200,000 authorized shares of no- par common to 600,000 shares of $10 par common. Stockholders will be asked to exchange their present common stock for the new $10 par common on the basis of two no-par shares for one share of the new common. ^This is further discussed in tiie section on Retail Store Location. RETAIL STORE PROBLEMS {Continued from page 16) carry, and, if ])ossible, which are the most successful tained by means of a system of "comparison shop- in ng" mentioned before. In the highly competitive condition of the retail field at the present time the service that the store ren- ders affects to a considerable degree the sales volume obtained. The surveyor should investigate what serv- ices comi)etitors offer and should watch for signs of appreciation of these services among the customers. The merchant may thereby be saved the installation of some expensive and ineffective system of service. To a large degree the success of any business is dependent upon the character and ability of the chief executive. Therefore, a merchant needs to obtain a clear idea concerning the abilities of the executives with whom he has to compete. Are they lax or ag- gressive, young or old? Verv naturallv much of the desired information regarding competitors will l)e difficult to secure, and the means of obtaining it depend largely upon the inge- nuity of the investigator. There are certain available sources of information, Init much can be ascertained from the competitor himself, either through coopera- tion or as a result of observation on the part of the sur- veyor. The merchant's customers also can be inter- viewed with much profit. (To be continued) »(,^Vt^,'!X»^l«/4l>S^lX»jiMyji«ijtV8^lXg/jt«)yp«9K'>»j:>*' v»A'^VJLVI/,tV»VJlVW:[«i!^8ljy«^'l«iyiV»>Jt^^^ After all ^^^ jiothing satisfies like a good cigar BOXED IN WOOD Keeps cigar fragrance alive Keeps display windows lively 7\ ro (>'nil':iJ t'(.rm or pnckamiiir jf Y keep- \ niir cIl:'.-!!'- -<» <-<>in|'l''l''ly ali\", >'» i'(iii,-i;nil 1\ aii«l advaii- tagoonsly r*// . All aloiiK the lint', from maiiurai- turor i(» cfHisiniier. lli<' riu'ar tliat ?« IioximI ill w (Hill i- 1 lie y// »/(//''/< lu'ar. TIm' t're-ll. e|e;ii| W ( h .( 1 >^l|U'll bk'uds wilii ihe leal'"- nalural t'raurainM' to prodijee a liiirr. iiie!I(>\\ ci-. hi'T ■ in- \iliii'j an •ma. The uchhI ('ii:ai' ud- hel ler 1 lie ' " lie! -i> U > »' u 1 " " ei'jar !•<• eeine- a- Linod a- liallU'e call lliak'f il. ( 'oiiiini'->-em'-, iiieii who \aliK' jfood eigarn for their riciineHH, < olm and I'niisli, and sniok*' llicm for lui- al iI ilh". /when buying cigars I Remember »hat Regardless of Price I THE BEST CIGARS I ARE PACKn} I> V WOODEN BOXES Volume 52 THE TOBACCO WORLD Number 9 EtUblished 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hanldns, Secretary Published on the Ist and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, MAY 1, 1932 Foreign $3.50 STUDENT from a nearby university was in the office recently and the conversation naturally drifted to student smoking. He expressed sur- prise that the cigar manufacturers were not more aggressive in trying to create cigar smokers among the college boys. He related that on his particular campus a cigar- ette company paid one of the students a straight salary to keep in close contact with all activities, such as stu- dent smokers, banquets, fraternity gatherings, alumni activities, etc. He told us that it was his business to see that a sufficient number of cartons of a particular brand of cigarettes were furnished gratis to all such gather- ings. He expressed the opinion that it had paid this particular cigarette company much more than the in- vestment. The question was asked why some progressive ci- gar manufacturers did not make the attempt to create •cigar smokers by the same method. Frankly, we could not answer the query except by way of explanation to say that the large cigar manufacturing corporations were "sot in their ways," and under present conditions not enthusiastic about any new methods of creating cigar smokers. Their chief aim and object at this time seemed to be to keep down their percentage of decrease in the sales department. He did state, however, that one cigar concern was furnishing its radio stars free of charge to college ban- quets, etc. They presented a thirty-minute program and, of course, in presenting the entertainment the toastmaster announced that it was by courtesy of the Blank Cigar Company, and the suggestion was added that when the guests again purchased cigars to be sure and ask for a '* Blank" cigar. Naturally only this par- ticular brand of cigars was served at the dinner. The suggestion was offered that a small cigar of the panatela shape, retailing at a nickel or six for a quarter, passed around at college smokers, banquets, etc., might be a step in the right direction to create •cigar smokers among college students. This student's suggestions were of such a construc- tive nature that we thought them well worth passing along to the cigar manufacturers. Such a program on any scale involves some expense, but compared to the money now being invested by cigar companies in radio advertising, it would be a drop in the bucket. It creates a personal contact which neither newspaper, magazine nor radio advertising can accomplish. With the millions now^ being invested in these forms of publicity the fact remains, as established by cigar withdrawal figures, that these large competitors are, at the most, doing nothing more than taking business away from each other. There is no indication of an upward trend in cigar consumption. We are continually being told of the tens of thou- sands of letters that are received weekly by the enter- tainers on the various cigar manufacturers' programs. But what we want to know is, how many cigars do these programs actually selU And, of course, there is the other side to the question. How many less cigars would be consumed if it were not for the radio advertising programs % If all these cigar manufacturers now broadcasting would pool their interests and put on a full hour pro- gram once or twice a day, and devote the time allotted for advertising remarks to winning back old cigar smokers and creating new ones, regardless of brands, we think much more would be accomplished, and it would certainly cut down the figures opposite ''adver- tising appropriation." Some time during the hour, there would be oppor- tunity to mention the brands of all cigar manufacturers contributing to such a program. And it is not necessary to point out that the finest talent on the air could be procured at comparatively little expense compared with the individual expenditures for this type of advertising. In proportion to their distribution and other adver- tising, every contributing firm should maintain its fair share of business, and also get its proportionate share in any increases. The cigar manufacturing industry is notorious for its inability to co-operate. There seems to be an in- herent jealousy which, in our opinion, has contributed much to the decline in cigar smoking. The fantastic efforts of various members of the industry to introduce new fads, which have been immediately imitated by competitors large and small, have cost amazing sums of money without producing any worth-while results in brand prestige or cigar sales generally. It must be obvious by this time that this alarming decrease in cigar sales must vitally affect the earnings of all cigar companies. Interest on bonds, and divi- dends on preferred and common stocks cannot be main- tained under such conditions. The profits on the de- creasing sales cannot maintain these dividends, no mat- (Continued on Page 15) 52nd year THE TOBACCO WORLD May 1, 1932 If 'k :\rnv 1, 1932 Say You Saw It in The Tobacco World 52nd year GEORGE ZIFFERBLATT VISITS BALTIMORE EORGE ZIFFERBLATT, of George Zifferblatt & Company, spent a few days in Baltimore the past week, visiting with F. A. Davis & Com- pany, distributors of "Habanello" cigars, and where Mr. Zifferblatt met Bernard J. Meyers, **Haba- nello^' sales representative. E. B. Josephson, of Lewis & Leidersdorf, of Mil- waukee, was a visitor at the '^Habanello" factory last week. **Habanello" salesmen are busy in their territories contacting the various jobbers, and the factory is re- ceiving pleasing reports that the "Habanello'' brand is going over in a big way wherever it has been placed. GRABOSKYS TO GROW LEAF TOBACCO It was learned last week that Sam Grabosky and his brother Ben, who formerly headed the G. H. P. Ci- gar Company, have leased several hundred acres of land in Connecticut from the Wetstone interests and will produce a crop of Shadegrown and Broadleaf to- bacco on the land this season. About 100 acres will be devoted to Shadegrown, it is understood, and the bal- ance to Broadleaf. ROTHSCHILD IN HAVANA Harry S. Rothschild, recently elected president of Bayuk Cigars, Inc., and Harry P. Wurman, vice-presi- dent of the same company, sailed from New York last week for Havana, where they will spend a few weeks inspecting Cuban leaf tobacco and making purchases of Havana filler for their company. CORAZA CIGAR FILES PETITION A voluntary jjctition in bankruptcy was filed by the Coraza Cigar ('ompany, 12.*? North Seventh Street, last week following charges involving the affairs of the closed Northwestern Trust (Company. No schedule of liabilities or assets was filed. John M. Hill is ref- eree and Edwaid P. (ieuther counsel. MacANDREWS & FORBES EARNINGS MacAndrews & Forbes (company, licorice manu- facturers, and subsidiaries, report for the vear 1931 net profit of $764,664, as compared with $1,002,182 in the previous year. BAYUK SALES INCREASING W. LEECH, manager of the St. Louis branch of Bayuk Cigars, Inc., was a recent visitor at Bayuk headquarters and talked over plans with sales manager, A. J. Newman, for increasing distribution and sale in his territory. The Bayuk factory is experiencing a fine increase in orders which has been evident for the past several weeks, and a decided feeling prevails that these in- creases will continue. Charles Cox, special branch representative, after a swing around the circle of Bayuk branches, visited headquarters with good reports of demand for Bayuk products. Wagner & Shurendorf, Logansport, Ind., are in- creasing the distribution and sale of Bayuk brands in their territory and have recently been receiving the assistance of F. H. Stutz, Bayuk salesman. An account has been opened up with Ed. Phillips & Sons Company, Minneapolis, Minn., and the new jobber is being aided by Roy D. Harris, Bayuk terri- torial man, in the placing and sale of Bayuk cigars. A. D. Hanauer, Trenton, N. J., is meeting with suc- cess and expanding the distribution and sale of ** Bayuk Phillies" and *' Bayuk Havana Ribbon" in this terri- tory. Bayuk 's are now producing a new cigar known as ** Little' Phillies," which is a true cigar in every sense, although retailing at five for ten cents. A. Jos. Ne\\Tiian, vice-president and general sales manager, states: "We believe that the perfection of this small cigar is a real service to the public. (Condi- tions of modern life present innumerable occasions when a brief smoke is desirable. We are happy to offer men such a cigar, and to add to the reputation of Phila- delphia as an important center of the cigar-making industry." Production of the new cigar was made possible through developments of a machine which turns out a shredded-filler cigar three and one-quarter inches in length in what is known as the "londres" shape. Only cigar tobacco is used, and the finished product comes off the machine all clipped and ready to smoke. The new product is characterized as "not a com promise cigarette, but a smaller edition of present products. ' ' I. Goldberg, prominent jobber of Coatesville, Pa., and distributor of Bayuk cigars, has returned to his home after some time spent in the hospital as the result of injuries to his leg. Mr. Goldberg is recovering nicely, which is pleasing news to his many friends. OK' AM ERICA \i. ■i.W - *■-«■ ^y. f^Z^^f^ I^l"'^ let kjuxcj^n More for your money than in any other cigarette! You get many extras in LUCKY STRIKE as a re- sult of that famous and exclusive "TOASTING'' Process. Extra Goodness — ^forced in when certain harsh irritants are forced out. Extra mildnoss, mellow-mildness — resulting from the purg- ing and purifying of every tobacco leaf. Extra Deliciousness — from the world's choicest tobac- cos— the Cream of many Crops. Extra Mellow- ness— from the use of modern Ultra Violet Rays. "It's tx>asted" Yottr Throot Prof ctlow —ogalwit IrrltatloH— ogalwit c»Mgh ITS TOASTED Copr.. 1931. The Aiarrlnn TobMra Co. O. K. AMERICA TUNE IN ON LUCKY STRIKE -60 modem minute* wiOi th« umrld't fmtu dance cnhettra* and Walter WincheU. u/howe go—ip of today become* liie nettm o/ tomorrow, c«cr> Tue»dmy, ThurBday and Satatday evening over N.B.C. ttetworkt. 52nd year THE TOBACCO WORLD May 1, 1932 May 1, 1932 Say You Saw It in The Tobacco World 52nd year t •h • BOWLERS HOLD ANNUAL BANQUET. HK annual banquet of the Cigar Manufacturers' Bowling League of Philadelphia was held on Saturday evening, April 23d, in the roof gar- den of tiie Hotel Adelphia. E. M. Hirst, of the ''Bayuk Phillies" team, pre- sided as master of ceremonies. The '^Cinco" team was the winner of the season, and becomes the permanent holder of the Leschey- Myers trophy, having been the season's champions three times in the past five years. The "Cinco" team was also awarded first prize for this season, which was a handsome plaque, donated bv George H. Snyder, Inc. Individual prizes were awarded to each member of the 'Tinco" team, which were attractive pen sets, donated bv the Consolidated Lithographing Corpora- Second prize was awarded the **Bayuk Phillies" team, and was a beautiful cup, donated by the U. S. Printing and Lithographing Company. A merchandise order was won as a prize by Dough- erty, of the **Cinco" team, for the highest average score throughout the season, and w^as donated by Banes & Mayer, lithographers. A merchandise order w^as also won by Webb, of the ''Royalist" team for the highest three-game score, donated bv the American Colortype Company. A beautiful vase was won by Giles, of the ''Cremo" team, for the highest individual game score, donated bv the Ketterlinus Lithographing Company. The Littlefield Review furnished excellent enter- tainment during the evening, by a series of beautiful classical dances, and other talent entertained the guests with a series of popular songs. Among the guests were ^Iv. Schrink, known as the "Judge Landis" of the bowling fraternity; Billy Knox, who presented the prizes, and who was the first man to make a perfect score of 300 in an A. B. C. tourna- ment ; Harry Bergman, of Bergman & Truck, who oper- ate the bowling alleys where the Bowling League games were played this season; T. G. Ketterer; John P. Sweeney, sales manager of the "Cinco" Company; Henry A. Voice, of the Consolidated Lithographing Corporation, and George and Allan Snyder. The banquet was the usual crowning success of the season. UNITED STATES CIGARETTES BARRED FROM COLOMBIA Cigarette smokers in the South American country of Colombia may use United States tobacco, but not the ready made United States cigarettes, if plans of the Compania Colombiana de Tobaco, the state tobacco trust, materialize, according to a report to the Com- merce De|)artment at Washington, from Trade Com- missioner S. J. Roll, Bogota. TIk' Compania Colombiana de Tobaco is experi- menting with a new cigarette, made entirely of Amer- ican toliacco, 80 per cent. Virginia and 20 per cent. Burley, to compete with American cigarettes. At present it is claimed that they taste very much like American cigarettes and it is believed in local trade circles that they may become a substitute for the popular American In-ands in Colombia. Because of the high duty on tobacco, these cigarettes will have to retail for at feast thirty centavos (par 0.01 cent) per package of eighteen. The very best grade of Virginia and Burley is being used in order to justify the pay- ment of the import duty of ten pesos per kilo on raw tobacco. TRADE NOTES J. Oliver Snyder, publicity man for E. Snyder & Son, Hampstead,*Md., on their ''Happy Heine" cigar, was a visitor at Yahn & ]\[cDonnell headquarters last week. The ''Happy Heine" cigar is meeting with a cordial reception wherever it has been placed. George Stocking, of the Arango y Arango factory, was a visitor in town last week showing some very at- tractive new sizes of their "Don Sebastian" brand, which is distributed in this territory by John Wagner & Sons. The "^lonticello" brand, which is controlled by John Wagner & Sons, and which has taken the place of the "Carl Upmann" brand in the Wagner line, is showing a substantial increase in sales. The cigar department of N. Snellenburg & Com- pany, featured the "Monticello" last week in their Twelfth Street window witli very good results. Ben Lumley, "Garcia y Vega" representative and also representative of the Sommerfeld Cigar Com- pany, on their "Dulce" and "Verdi" brands, returned last* week from a trip through New York State as far as Buifalo and reports a highly successful trip. Increased sizes of the "Garcia y Vega" brand have been received by John Wagner & Sons, local dis- tributors, and have been well received by the trade. Paul Brogan, vice-president of Yahn & ^IcDonnell Cigars, 617 Chestnut Street, has been confined to his home for a few days suffering from laryngitis. We are glad to report, however, that Mr. Brogan was able to return to his desk this week. Abe Caro and Anthony Cueva, of A. Santaella & Company were visitors at Yahn & McDonnell, local dis- tributors of the "Optimo" cigar, last week. "Optimo" sales are holding up exceptionally well under their supervision. Harry Tint, has been featuring the "Burlington Arcade Special" cigar in his stand in the Burlington Arcade with wonderful success. The "Burlington Arcade Special" retails at five cents and u]). Mr. Tint is also displaving some beautiful cabinets of "La Corona", "La Int'imidad" and "Belinda" ci- gars, each cabinet containing six sizes. The cigars are all English Cabinet selections in a handsome cedar cabinet and a plain cedar box inclosed in the cabinet. These cabinets are selling exceptionally well. HOLLIDAY VICE-PRESIDENT BROMILEY-ROSS S. N. Holliday has been elected vice-president and secretary of Bromlley-Koss, Inc., Now York, newly formed company now handling the outdoor advertis- ing of the American Tobacco Company's products. He has been engaged in outdoor advertising work for many years. When the General Outdoor Advertising Com- pany was formed in 1925 Mr. Holliday became assist- ant to the president and, later, national copy director of that organization, which position he held with Out- door Advertising, Inc., until his resignation, recently. CIGARS ADVERTISED ON POSTAGE STAMPS Since the new issue of postage stamps by Guate- mala advertising the fact that that country produces fine coffee, other members of the Universal Postal Union have asked the question as to whether postage stamps could not now be used to advertise cigars, etc. Don't remove the moisture- proof wrapping from your package of Camels after you open it. The Camel Hu midor Pack is protection against perfume and pow- der odors, dust and germs. In offices and homes, even in the dry atmosphere of artificial heat, the Camel Humidor Pack can be depended upon to deliver fresh Camels every time She smokes Fresh cigarettes • • . not parched or toasted WHEN you buy Camels you get fresh cigarettes. That's why women particu- larly prefer them. Cool, refreshing smoke that is mild all the way down, with no trace of parch or bite to sting the tongue or rasp the throat. That's because Camels are made right and kept right. Made of choice Turkish and sun- ripened Domestic tobaccos that are prop- erly conditioned; that contain just the right amount of natural moisture. Kept in factory -prime condition until they reach the smoker by the air -sealed, Camel Humidor Pack. The select tobaccos that go to make up your Camels are never parched or toasted. The Reynolds method of scientifically applying heat guarantees against that. If you've never experienced the delight of a cigarette that has never been parched or toasted switch to Camels, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY Winston-Salem, N. C. e IMS. B.. 1. Rairaolda Tobscco Company Camels 3iade wnKSH^Kvpi FRESH 8 52nd year THE TOBACCO WORLD May 1, 1932 May 1, 1932 THE TOBACCO WORLD 52nd year \ News From Congress _ -AND Federal Departments ^Alfti.-'rJfciai.^A;, From our tVASHiNGTON Bureau 62ZAlbce Building ITH hearings on the new revenue bill com- pleted, the Senate finance committee is draft- ing the measure which it will sponsor in the Senate, to be reported early in May. With business showing little or no signs of ina- provement, members of the committee are faced with a most difficult task in deciding where the burden ot more than one billion dollars which must be raised shall be imposed. During more than two weeks of hearings, the com- mittee heard the House tax proposals flayed by repre- sentatives of the industries alfected, who were unani- mous in their declaration that their several trades could not survive the burden of the House rates, ex- pressing a preference for a manufacturers' sale tax as more equitably distributing the load. Tobacco taxes entered but briefly into the discus- sions before the committee, Emerson Ela, of Madison, Wis., representing the Wisconsin tobacco producers, urging that the tax on manufactured tobacco be in- creased to 21 cents per pound, as recommended by the Treasury, but refunding to manufacturers four cents a pound on tobacco bought of co-operatives. This, Ela asserted, would enable the co-operatives to secure at least three cents a pound more for their tobacco than they are now getting and both the grower and manufacturer would benefit, although it did not appear how this would aid the Government's revenues except that it was hoped tobacco consumption would increase thereby enabling the Government to secure more money. Ela attacked the large tobacco corporations which, he declared ''made vast profits during the most disas- trous business year of 1931." The Reynolds Tobacco Companv, he told the committee, was reported to have made $36,000,000 on $100,000,000 of capital and the Liggett & Myers Tobacco Company to have made a profit of $23,000,000 on $60,000,000 or $70,000,000 of capital. The proposed increase on manufactured tobacco would raise $7,000,000 during the fiscal year 1933, he declared, which the Reynolds Tobacco Company could pay alone "out of their 1931 net profits and still pay a net return of 29 per cent, on their capital in the year of 1931, when most business was suffering disaster. ' ' Questions by Senator Barkley (Dem.), of Ken- tucky, clearly indicated that he would not favor the proposal which, he asserted, would penalize the grower who refused to join the co-operative. Amendment of the present taxing provisions on cigarette papers to rectify w^hat he terms **a grave in- justice" to importers and manufacturers of books of 100 leaves or more, was asked by David Spiegel of Max Spiegel & Sons Company, New York. Under the present law, he said, cigarette paper books of twenty-five leaves or less may be distributed tax-free. Certain manufacturers of smoking tobacco have adopted the practice within the last year or so of distributing forty or fifty leaves of paper with each ounce of tobacco without the payment of tax by furnish- ing the paper in the form of two books of twenty or twenty-five leaves each. This is made possible, he declared, by the wording of the law, which fails to limit the quantity and manner in which the small books may be distributed tax-free. Checking of the practice would increase the Gov- ernment revenues $900,000 to $1,000,000 a year, Mr. Spiegel estimated, and would relieve the manufacturers and importers of standard 100-leaf books on which taxes are paid of the competition afforded by the tax- exempt papers. He urged that tax-exempt distribution be limited to one book of not exceeding twenty-five leaves given free with each package of not less than one ounce of tobacco. Cj3 CJ3 Ct3 Cigar Firms Ordered to Discontinue Use of Word *' Havana." Orders requiring four Pennsylvania cigar manu- facturers to discontinue the use of the word **Havana" in connection with cigars not made from tobacco grown in Cuba have been issued by the Federal Trade Com- mission, it was announced April 23d. The manufacturers involved were W. H. Snyder & Sons, Windsor; John F. Reichard, trading as the Manchester Cigar Company, York ; T. E. Brooks, trad- ing as T. E. Brooks & Company, Red Lion, and Her- bert L. Smith, AVindsor. The respondents in these cases, the commission explained, used the word '* Havana" as part of the trade names for their cigars. The orders require that, if used, such name^ must be accompanied by a state- ment or phrase equally as prominent which clearly indi- cates that the cigars do not contain Havana or Cuban tobacco, or that they are composed entirely of certain tobacco none of which is Havana or Cuban, or that they are not made entirely from Cuban tobacco, as the case may be. '' 'Havana' as a name for cigar tobacco is no doubt the oldest in America as it has been used since the days of the Spanish explorers to describe that to- bacco grown in Cuba and now known the world over for its excellence," the commission declared in announc- ing issuance of its orders. "The terms 'Havana to- bacco' and 'Cuban tobacco' are synonymous in meaning and are used interchangeably." BAYUKS OPERATING AT 95 PER CENT. NE hundred and eighty- two additional em- ployees have been taken on by Bayuk Cigars, Incorporated, since April 1, according to an announcement by A. J. Newman, vice-president and general sales manager. The company's factory, the largest cigar manufacturing plant in the world, is now operating at 95 per cent, capacity, an increase of approximately 25 per cent, over the first quarter of the year. Production in April will equal that of the peak month in 1931. **The increase," Mr. Newman says,'' can be largely attributed to an intensified selling effort, including close and frequent contact with the trade, a reduction in the price of the company's 'Mapacuba' brand, and a special price inducement to consumers on Bayuk 'Phillies' that has proved particularly attractive to them and to the retailers. Demand for ' Phillies ' has grown to the point where the company's production operations are just able to keep abreast of it." A further expansion in production is expected. At the present time, 95 per cent, of the total number of machines are in operation. The remainder will l3e put into operation at an early date. JONES JOINS TOBACCO MACHINE SUPPLY COMPANY J. Walter Jones, formerly associated with Waitt & Bond, Incorporated, has joined the recently organ- ized Tobacco Machine Supply Company, as secretary of the company, and in charge of the sales and service department. Mr. Jones has for the past fifteen years made a specialty of supervising wrapper stripping on the Uni- versal Model M stripping and booking machine, and has been successful in eliminating the bruising and splitting of wrappers, which is a common fault in most cigar factories. Mr. Jones will call on any customers and assist them in any diflficulties they may be having in their stripping department. TOBACCO ASSOCIATION TO MEET JUNE 30TH The regular annual meeting of the Tobacco Asso- ciation of the United States will be held at Virginia Beach on June 30th, July 1st and 2d. Mr. Henry S. Hotchkiss, Richmond, Va., is chairman of the commit- tee on arrangements. The opening day will be given over to the selection of committees and discussion of important business, which includes the selecting of opening dates for the southern tobacco markets. The annual banquet will be held on Friday evening, July 1st, and the nominat- ing committee will submit its report in connection with those to be elected to the board of directors. REAL ESTATE OFFSETS SCHULTE PROFITS D. A. Schulte, president of the Schulte Retail Stores Corporation, in a letter read at the stockholders' meeting held recently, stated that the profits of recent years had been absorlDcd largely by losses on real estate. The directors and present officers of the company were all re-elected at the meeting despite efforts of a minority group to obtain representation on the board of directors. The present management mustered 762,- 000 votes while the minority group only number 101,000 votes. The company has outstanding 1.138,711 shares of stock. TOBACCO MAN'S WIDOW LEAVES $200,000 HE will of Mrs. Mary A. Hendrickson, 337 Man- heim Street, Germantown, was probated in this city on Wednesday and disposes of a personal estate of $200,000 and upward and realty val- ued at $17,840. The chief beneficiaries are two daughters, Mrs. Anna H. Donnelly, of Germantown, and the Marquise Amanda H. Molinari, of Paris, France, and a son, William A. Hendrickson. Mrs. Hendrickson, who died April 19th, was the widow of Sanmel A. Hendrickson, formerly in the to- bacco business in this city. The sum of $7000 is put aside to create a trust fund for the benefit of Louisa J. Birch, upon whose marriage or death the principal is to revert to the residuarv estate. Gifts of $1000 each were made to Elizabeth Hat- field, Sarah Cottman and Brittomarte Westfall, the latter a nurse. Amounts of $500 each are bequeathed in the will to four nephews, two nieces and to the grand- children. A bequest of $40,000 in trust for the benefit of a brother, Joseph P. Limeburner, is invalidated by the death of the beneficiarv and the monev will revert to the estate. Mrs. Hendrickson directed that her household goods and family portraits be sold at a private auction to be attended only by her children or their agents. The portraits under no circumstances are to be "ex- posed for public sale," and if not purchased by mem- bers of the family, shall be given to Adolph P. Lime- burner, a brother of the testator. To a nephew, John E. Limeburner, 3d, is be- queathed a portrait of his srrandfather, John E. Lime- burner, painted by Mrs. Hendrickson 's uncle, Alexis Limeburner. CLASS A GAINS IN TWENTY-THIRD DISTRICT Class A cigar proiluction increased in the Thirty- third Pennsylvania District in March of this year, as compared to the same month in 1931. Class A produc- tion in the First District fell off. The Twenty-third District produced 5,612,420 Class A cigars in March, 1932, and 3,302,850 in 1931. The First District fell from 81,888,855 to 76,131,695. Production of Classes B and C cigars decreased in the First District. Class B dwindled from 9,561,340 to 888,770, and C from 34,562,708 to 17,438,324. March tax stamp sales were: First District 19S1 1932 Class A $163,771.71 $152,263.39 Class B 28,684.02 2,666.31 Class C 172,813.54 87,191.62 Twe nty- Third District 19 SI 1932 Class A $6,605.70 $11,224^.84 D. EMIL KLEIN DIVIDEND Directors of the D. Emil Klein Company ("Had- don Hall," "Nottingham," etc.), have declared a quar- terlv dividend of twentv-five cents a share on the common stock of the company payable July 1st to stockholders of record June 20th. LIGGETT & MYERS DIVIDEND Directors of the Liggett & flyers Tobacco Com- pany have declared the regular quarterly dividend of $1 on the common and common B stocks of the company, both pavable June 1st to stockholders of record ^^av 16th. 10 52nd year THE TOBACCO WORLD May 1, 1932 Mav 1, 1932 Say You Saw It in The Tobacco World 52nd year 11 I PHIL M. PHULOFAX DISCLOSES ESSENTIALS FOR SUCCESS ONFIDENCE is the rock on which your store should be founded, ' ' announced Phil M. Phulo- fax, D. B. I., in his most recent communication to this publication. Before his association with Bayuk Cigars, Inc., Mr. Phulofax won for himself a success in the retail cigar business which gives him authority in this field. "If you've built it securely no amount of depres- sion gale can blow it down. ** Confidence in you and what you have to sell. You know that old saw about honesty, so I won't even quote it. But all philosophers from Diogenes to Will Rogers have done a lot of thinking on that subject, and, as business getters, we can profit by their conclusions. **We aren't tricksters playing for suckers on one corner today and on another tomorrow. We're in the cigar business, and a right honorable old American business it is. No matter if you're a sixteen-cylinder salesman, equipped mth all the latest gadgets of a high-powered line, you won't get repeats, real custo- mers, unless you sell 'em what you know is good — in other words, unless you have built up confidence in your judgment and in your stock. They tell us how Abe Lincoln walked miles to return some small change, but the birds who wrote the books forgot to tell us some- thing much more important — that Abe knew^ what kind of flour, oats and tobacco he was making change for. **So my suggestions for today is, let's get rid of the phoneys, the long shots, and stock up with good reliable brands. If old John Skinflint comes looking for a cheap cigar, tell him you don't know a thing about that un- known. Tell him here's a good cigar, a little more expensive, perhaps, but one you would stake your new suit of clothes on, one that you know from experience smokes true to the end. He'll admire vou for vour straight shooting, and he'll buy more in the end once he experiences the satisfaction of a thoroughly honest smoke." (( ONE SMOKER TELLS ANOTHER M MENGEL COMPANY REDUCES STOCK The New York Stock Exchange has received notice from the Mengel Company of a proposed change in authorized common stock to 400,000 shares, par value $1, from a like amount of no-par, and reduction capi- tal represented by outstanding capital represented by outstanding common stock to $1 from $25 a share. UNITED STATES PLAYING CARD NET OFF The United States Playing Card Company reports net profit for 1931 of $576,811 after depreciation and Federal taxes, equal to $1.45 a share, par $10, on 397,- 589 capital shares, compared with $1,209,907, or $3.02 a share on 400,000 shares in 1930. SCHULTE RENTS ON PERCENTAGE The Schulte Cigar Stores Company have leased the store and basement at 545 Fulton Street, corner of Albee Square, Brooklyn. The rental paid under the lease was a percentage of the gross business done with a minimum guarantee. TOBACCO PRODUCTS EXPORT NET Tobacco Products Export Corporation reports for 1931 net profit of $48,262 after taxes and charges, com- paring with $49,249 in the preceding year. ELLING technique has made great strides since Eve talked Adam into eating the apple, but advertisers still acknowledge the importance of **word of mouth." This time-honored prin- ciple of publicity dominates the current *' Chesterfield" series, **One Smoker Tells Another." The new slogan, launched during the w^eek of April 11th, already is recognized as a worthy addition to the "Chesterfield" collection, led by the famous "They Satisfy. ' ' It will be used in a variety of settings, many of them illustrating outdoor scenes appropriate to the season and including camping, fishing and motoring. "One Smoker Tells Another," according to Lig- gett & Myers, suits "Chesterfields" because that's the way their popularity has been built up. "The fate of a really good product can safely be left in the hands of those who buy and use it. ' ' CLEVELAND SCHOOLS TO PROVIDE SMOKING ROOMS FOR WOMEN TEACHERS Smoking rooms in schools for women teachers as well as for men teachers may become a regular feature of American schools. According to news dispatches, the Cleveland Board of Education is xjroviding smok- ing rooms in its public schools for women teachers, replicas of those already in existence for the male teaching staff. Tobacco experts point out that since the introduc- tion of such modern methods as the use of the ultra- violet ray and toasting to remove impurities from to- bacco, cigarette smoking among women has become an accepted fact. The school smoking room for women teachers is l)ut another tangible evidence of this trend. The Cleveland plan is being applauded, for it is generally recognized that teachers, women as well as men, should be able to smoke, if thoy desire. DEISEL WEMMERGILBERT CORPORATION EARNINGS The Deisel-Wemmer-Gilbert Corporation, manu- facturers of "San Felice," "El Verso" and other pop- ular brands, reports net profit for 1931 of $477,469 after taxes and charges. This was equal after preferred dividends of $1.62 a share on 216,410 shares of common stock, as compared with $682,435, or $2.31. a share on 238,095 shares of common, in 1930. AMERICAN COLORTYPE REPORTS LOSS The American Colortype Company, which absorbed the ]\loehle Lithographic Company, Incorporated, some time ago, reports gross shipments'for 1931 of $7,330,468 and gross manufacturing profit of $222,937. Net loss, after other income, interest and depreciation, amounted to $398,056, compared with net profits of $324,804. Cur- rent assets at the close of the year w^ere $4,297,351, against current liabilities of $729J145. AXTON FISHER REPORTS The Axton-Fisher Tol)acco Company reports net profit of $605,552 after taxes and charges "in 1931. This is equal to $3.74 a share on the Class B stock, compared with $744,106, or $4.94 a share in 1930. EXCHANGE BUFFET EARNINGS Exchange Bnff(^t Corporation reports for the quar- ter ended January 31st, net profit of $32,453 compared with $95,393 in the corresponding quarter a year ago. Did you say lO^ ? Yes, I said I MODEL SMOKING TOBACCO WILL WOMEN TAKE UP PIPE SMOKING? ONTRARY to predictions that women would never become pipe smokers, a newspaper re- port has been published to the effect that pipe smoking is the fad of the moment among Ncav York^s Park Avenue debutantes and society matrons. Full credit for the vogue is claimed by Aix;hibald Charles Montague Brabazon Acheson, fifth Earl of Gosford, Knight of Grace of the Order of St. John of Jerusalem in England, grandson of the Duke of Man- chester and son of the Lady of the Bedchamber to Her Majesty the Queen of England. Lord Gosford sat in a plush-carpeted suite over- looking Central Park, puffing on a miniature pipe — a three-inch one-ounce briar. It's his own idea. He designed it for himself. He never intended, he says, that any copies should be made, but **When I came to America, I found most all the ladies I met smoking cigarettes, then I thought of my little pipe. I had it made because I wanted to smoke between the acts at the theater and at dinner parties. **An ordinary pipe ruins the pocket of a dinner coat. This one solved my problem — enough tobacco for a good little smoke, but never a nuisance to carry around. I decided it would be just the thing for your American women, so I had a few made for my friends. Now everywhere I go I see beautiful ladies puffing on pipes." Lord Gosford warns feminine pipe smokers not to use ordinary masculine tobacco, which he calls ''fine for the out-of-doors but horrible in a parlor. '' For wo- men and husbands whose wives won't let them smoke indoors he recommends very mild, very fragrant blends. One prominent pipe manufacturing firm is said to be surreptitiously bidding for this new market of pipe smokers in much the same way that the cigarette com- panies cautiously started their advertising to the fe- male cigarette smokers several years ago. UNITED OMITS DIVIDEND The United Cigar Stores Companv of America has omitted the quarterly dividend of ^L.IO on the 6 per cent, cumulative preferred stock due at this time, according to an announcement made last week. On Fe])ruary 1st, $1 a share was paid. NEW DIRECTORS FOR AMERICAN CIGAR Robert Lehman, John F. Fay and ^Faurice New- comb have been elected directors of the American [^'ii^'ar Company, representing minority stockholders, ihe company is controlled by the American Tobacco Company. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCK, Wheeling. W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Pretident JULIUS LICHTENSTEIN, New York, N. Y Vice-President WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL, New York, N. Y Vice-President H. H. SHELTON, Washington, D. C Vice-President WILLIAM T. REED, Richmond. Va. Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND. New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio ........••••.....•.••, President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG. Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa ,»,,, First Vice-President D. EMIL KLEIN, New York City .. Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN, New York, N. Y First Vice-President ABE BROWN, 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President SPAIN INCREASES DUTIES AND TAXES The National Assembly of Spain, on ^[arcli 3d passed a bill increasing import and export duties 1)0- tween 20 and ^>0 per cent. Taxes on the production of alcohol, beer and ex- plo.sives and on the consumption of jxasoline and to- bacco were increased. Import duties on automobiles were raistHl to 100 pesetas ($7.66) a metric ton. Petroleum, gasoliue and other imports also were included in the increased duties. SCHULTE DEFERS DIVIDEND ACTION Directors of Schulte Retail Stores Company have deferred the preferred dividend due at the time until a special meeting to be held on tJune '2, 1932. lit* 12 52nd year THE TOBACCO WORLD May 1, 1932 May 1, 1932 Say You Saw It in The Tobacco World 52nd year L-; I RETAIL STORE PROBLEMS So many persons are unaivare of the many aids to business ivhich have been carefully prepared by the United States Government, and so many of those who are aware of these facilities fail to tale advantage of them, that we are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff wider the supervision of Law- rence A. Hansen.) (Continued from previous Issue) Limiting Factors of the Market The ultimate aim of measuring the retail market is to estimate sales possibilities, so that the executives can more effectively plan the major policies of the store. Such an evaluation enables executives to know just where they stand in their own particular market. Many of the more progressive retail stores now have a svstem of budget control in which planned sales for some future period form the starting point.^ One of ^ See section on Budgelry Control. the difficult features of the budget-control system is the establishment of a correct estimate of these sales. Here, then, the market analysis helps, especially when the past records of the store have been analyzed m the study. The growth of the company, measured by its gross sales, establishes the position of the store in the retail field and indicates whether it has obtained its share or more than its share of growth. It estab- lishes the normal rate of expansion and allows a pre- diction as to what future growth will be. Such a rec- ord of sales, though valuable, must be used with ex- treme care, however, in attempting to forecast sales for the future. Such figures carry many conflicting elements, the effect of which it is virtually impossible to carry in one's head. The record of the sales by years carries with it the historv of the company as to growth. If these figures are plotted into curves this growth will be strikingly set forth when it may not have been so readily per- ceived before. The record of sales by months would not show the long-time growth of the company because of the seasonal factors that enter into sales. Certain months of the year can always be counted on to be low, while others will be extraordinarily high. If the store's yearly sales have shown a continued growth in past vears,' this increase can be expected to continue into the next year, and if an average rate of growth is found it might be used in predicting the next vear'a sales. Such a use of the long-time growth of the sales must be resorted to cautiously, because the sales each year are affected by the abnormalities of that year and bv general business conditions. If the sales of a store are forecast a year ahead, they may be divided on a monthly basis by a comparison with the average monthlv variance that is shown in past records. Besides the limiting factor of seasonal variation, there are others that materially affect the market. The price of the product to be sold is certainly a con- sideration in the limiting of the market. If the price is high, there may be very few potential customers. It is barelv possible that an article may be priced so low as to connote the idea of cheapness, with a consequent lower sales volume than if the price had been higher. Fashion may either create or break the market for a product. If the style happens to be on the up- swing, the market or demand can be expected to in- crease to a certain point and then decrease rapidly. Fashions may be said to go through certain stages in demand. Usually a style starts out with only a few of the more influential people using it. Then the de- sire on the part of others to emulate will increase the demand. After this point the style is usually made in such quantities and material that an appeal can be made to the buying motive, economic emulation. At this stage the greatest demand will be felt, but it is here that the style is killed, because of a result of ex- cessive popularity all desire to emulate it is lost. The climate and weather may affect the retail market considerably, or, again, they may be of no particular or vital importance, depending to a large degree on the nature of the retailing enterprise. The sale of ice, coal, or wood is certainly affected by the weather. Stores in areas of little rainfall would not carrv so complete a stock of umbrellas or raincoats. Other factors of the climate may not be so readily apparent and could only be determined through some research. Different grades of motor oils, for instance, might be more suitable to different localities, and the successful merchant is the one who knows which is best to sell. Conclusion In a general discussion of measuring a retail mar- ket it is impossible to suggest all of the many factors that a retail merchant should consider. Indeed, fac- tors that may properly seem of paramount importance to a specialized retailer may not have been touched upon. The dealer in electrical appliances, for instance, will be intensely interested in knowing the number of homes and apartments that are electrically lighted and equipped. Such information would be of little value, however, to a distributor of clothing, except as one of a number of possible indexes of the community's standard of living. j. . • But when all the elements which play upon distri- bution have been named — religion, education, trans- portation, climate, etc. — two basic elements stand out as of prime importance for consideration, namely, population and purchasing power. Given enough peo- ple in sufficient density, with money above the aver- age, there is a consuming power in that community which can be expected to absorb a large amount of merchandise. A study of these two elements, of course, will not give any absolute results or formulas for fu- ture guidance. The buying habits of people will differ and change, and there can therefore be no possible fixed rule which may be applied even to a single com- modity. There are, however, certain products that are common to the needs of all, and for these it seems not unwise to assume that population data should be a fair index of the potential market. Merchandise be- longing to the nonessential class is bought niore in proportion to the purchasing power of the individual. Though the two above-named factors are of greatest (Continued on Page 14) MARCH CIGAR PRODUCTION OFF 19 PER CENT. HE following comparative data of tax-paid products indicated by monthly sales of stamps are obtained from the statement of Internal Revenue collections for the month of March, 1932 and are issued by the Bureau. (Figures for IMarch 1932 are subject to revision until published in the an- nual report) : Products Cigars (large): Class A No. Class B No. Class C No. Class D No. Class E No. — March — 1931 291,397,080 32,148,003 109,260,970 6,876,610 789,747 1932 267,632,395 4,577,807 77,971,942 4,867,017 332,969 Total • • • • 440,472,410 355,382,130 20,826,480 320,614 8,446,577,237 3,455,166 27,988,941 33,256,507 513,600 Cigars (small) No. Cigarettes (large) ...No. Cigarettes (small) . .No. 9,801,886,417 Snuff, mfd Lbs. 3,497,016 Tobacco, mfd Lbs. 27,551,563 Note: The above statement does not include tax- paid products from Porto Rico and the Philippine Is- hmds. This information is shown in supplemental statement. Tax-paid products from Porto Rico for the month of March: Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. 1931 15,327,850 127,000 245,000 4,500 March — 1932 4,335,350 10,000 1,107,500 Total 15,704,350 5,452,850 50,000 Cigars (small) No. Cigarettes (large) ...No. Cigarettes (small) ..No. Tax-paid products from the Philippine Islands for the month of March: 500,000 200,000 2,000,000 Products Cigars (large) — Class A No. Class B No. Class C No. Class D No. Class E No. — March — 1931 13,202,120 89,247 50,010 580 500 1932 13,185,195 48,920 39,394 60 100 Total 13,342,457 13,273,669 Cigarettes (large) ...No. Cigarettes (small) ..No. Tobacco, mfd Lbs. Note: Quantities of tax-paid products shown in above statements are indicated by stamp sales for the month. 600 146,720 55 39,750 39 Comparative Statement First Nine Months of Objects of Taxaiion Tobacco manufactures : Cigars Cigarettes Snuff Tobacco, chew ing and smoking. . . . of Internal Revenue for the Fiscal Years 1931 and 1932 First Nine Months Fiscal Year 1931 1932 $13,761,961.98 $11,261,106.09 264,667,376.49 237,132,275.42 5,376,702.29 5,258,260.66 43,522,074.42 44,091,037.13 "Oh, Yeah ? well don't let it happen again, Son T" Them fags you smoke would start you twitch in* And stop this no-hit game Fm pitchin\ Try OLD GOLDS, kid... What Vu\ remarkin% You'll ketch them 6y8 and stop that barkin\ PURE TOBACCO... NO ARTIFICIAL FLAVORING That's why O. Gs. do not scratch the throat or taint the breath . . . (Cello- phane-wrapped, of course). NOT A COUGH IN A CARLOAD 'BEST OF THE BEST 9t M........,.a b, ^ SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Keg West, Florida DIAMOND FILES PETITION A voluntary petition in ])ankrnptcy was filed last week by George M. Diamond, retail cigar store, 4001 Longshore Street. No schedule of liabilities or assets were filed at the time. L. Leroy Deininger was ap- pointed referee, and Joseph Blank, counsel. The Bloomington, 111., city council has passed an ordinance taxing all stores selling tobacco $2;') a year; this ordinance replaces a former one assessing a tax of $100 a year for the sale of cigarettes only. 14 52nd year THE TOBACCO WORLD May 1, 1932 i\ray 1, 1932 THE TOBACCO WORLD 52nd year 15 I Retail Store Problems {Continued from Page 12) value in determining the total amount of merchandise that a particular market will absorb, the individual merchant is also vitally interested in knowing what part of the total he will l)e able to obtain. In regard to this phase of the problem it seems logical that ma- jor consideration should be given to competition. In any market analysis the quality of the mer- chandise that will be in demand is extremely impor- tant, as well as the quantity that can be absorbed. Especially is tliis true at the present time, when the market has changed from a seller's to a buyer's mar- ket, where the consumer can select goods to suit his demands. It may be said in conclusion that a careful market analysis by retailers may do much toward smoothing out some of the irregularities in business conditions. Without going into the controversial cause for the changing periods of prosperity and depression in busi- ness it can certainly be said that during periodic in- tervals there is overproduction by the manufacturer, with its attendant evils, and overbuying by retailers. If all the distributive markets, from the manufacturer to the consumer, could be accurately determined, ex- cess production and overbuying might be eliminated to a large degree and a real service rendered to society. RETAIL STORE LOCATION Introduction Each year sees the opening of a large number of retail enterprises many of which are not economically justified and which owe their ])eginning almost solely to the small capital reest asset, while a poor location may be the cause of failure even when sound merchandising policies are practiced. The location problem concerns not only the newcomer in the retail tield but also the established merchant, and the experienced retailer therefore sees the necessity of watcliing constantly the economic and physical changes of his community and of considering their relation to location and how they may add to or detract from the growth of his business. He compares the advantages of his present location with possible new ones, remembering that the value of a retail store loca- tion is measured by the possibilities it offers of making a profit. General Factors Community The retailer, as purchasing agent of the commu- nity, has a duty to fulfill — that of providing commodi- ties and services to his community economically and conveniently. Therefore Ijefore assuming this respon- sibility the progressive mercliant will analyze the com- munity to see if there is really an opening for him. The importance and character of the principal in- dustries nr<' subjects for careful study. A good index of the importance of an industry with respect to retail trade is the number and class of wage earners em- ployed. If the industries are of a permanent nature, witli a prospect of future growth, it may be advisable to open a store even if the existing conditions do not indicate large profits immediately ; but if the industries are only temporary, like many of our war industries, the disadvantage is obvious. How long the present in- dustries will continue to operate, what industries, if any, will take their place, and how long will be the transi- tional period are other features for such an industrial study. Some industries are intermittent, and w^hile tliey are operating the community appears prosperous, but when they are closed retail buying declines. A mer- chant entering the retail business during prosperous times may find himself without a sufficient volume of sales to pky his overhead during a slack period. Some towns are essentially school or tourist towns and are active only a part of the year. A store in a town of this type must receive the maximum volume of business dur- ing the busy season. The character of the wage-earning population in cities varies widely. Such cities as Bridgeport, Hart- ford, Worcester, and Akron have essentially a male population, while some others are predominantly fem- inine, as, for instance, Haverhill, Lynn, Lowell, and Fall River. The customs of the people in the community make some important differences in the character of the trade. Communities differ greatly in the kinds and qualities of foods used. In some communities ** style goods" are much more in demand than in others, and the rate of change of style varies greatly even between communities only a few miles apart. The size and the rapidity of growth in the popula- tion of a city are both fundamental considerations. If a city has been growing rapidly for the past ten years it is likely to continue to grow for a time of its own mo- mentum, all economic considerations being equal. The possible future industrial development must also be considered in relation to the growth of the population and to the extension of the trade market. The measure of the potential buying power of a community will be extremely helpful, not only in deter- mining the wisdom of locating in a city but also in deciding on the type of store to be established and the quality of the merchandise to be carried. The number of wage earners has much to do with the potential buy- ing power, and can be roughly used as an index of this power, especially when the average number of wage earners per family is known. Generally speaking, those families in which the largest percentage is working will have a higher percentage of income to spend for articles other than necessities. In conjunction with the above- named indexes the size of the incomes of the people is also indicative. In general, the larger the income, the greater the amount spent for comforts and luxuries. This does not mean, however, that the amount spent for such articles increases in direct proportion to the in- come. Such expenditures tend to fluctuate with busi- ness conditions, increasing during times of prosperity and decreasing during depressions. Some neighborhoods are progressive, Avhile others tend to stand still. Some measure of this progressive- ness can be obtained by determining the standards of the public schools, also by ascertaining the activity of the civic and business associations and the extent to which they aid local business and operate to secure new industries or hold old ones. It is desirable to know the standards of living of the community and the cost of living as compared with other localities. A high cost of living and high stand- ard of living affect not only the individual proprietor but also his cost of doing business and thereby his profit. He must pay a larger wage for clerk hire under such conditions, and very probably other expenses wall be greater. (To be Continued) {Continued from, Page 3) tor how far the prices of supplies and raw materials are forced down. It is inevitable that the cigar industry must acquire a new vision in the maintenance of its business. There is vast duplication in advertising effort which in the final analysis is non-productive. ]\[oney which might well be applied to earnings is being budgeted for futile gestures which are nothing more than a bluff at ''Keep- ing Up with the Jones's." It is true that there are certain leaders in the business who will stay at the ''top of the heap" as long as there is a heap to dominate. But this business of "whistling in the graveyard" costs much coin of the realm, and it can't go on forever, under present con- ditions. LOFT CANDY PROFITS UP Loft, Inc., operator of restaurants and confection- ery stores, reported that net operating ]n-ofit for 1931, after interest, depreciation, amortizatioii and other charges, amounted to $3r)(),708, compared with net operating loss of $84,142 in 1930. Capital stock of Loft, Inc., outstanding at the end of 1931, amounted to 1,073,- 259 no par shares. Loft, Inc.. owns about 71 per cent, of the capital stock of the Happiness Candy Stores, Inc., which in 1931 operated at a net loss of $73,899 allocable to Loft as its proportion in the total loss resulting for Happi- ness Candy. The Loft balance sheet as of December 31, 1931, shows total assets of $13,053,230. Current assets amounted to $1,798,071, against current liabilities of $1,129,068. Cash on hand or in banks totaled $809,867 and inventories to $734,003 at cost or market, which- ever was lower. Land, buildings, furniture and fix- tures, as appraised July 31, 1919, by the American Ap- praisal Companv, plus subsequent additions at cost, were carried at $7,332,772, after charging off deprecia- tion of $3,226,580. SENATE COMMITTEE RECOMMENDS NO TOBACCO TAX INCREASE Washington, D. C, April 28.— Nearing completion of its task of writing a new tax bill, the Senate Finance (Committee today at the suggestion of Senator Barkley (Dem.), of Kentucky, unanimously adopted a resolu- tion expressing it to be the sense of the committee that no increases over the present taxes should be made on tobacco or tobacco products. As a precaution, however, the committee made a reservation to the effect *hat if it is later found addi- tional revenue is necessarv, the resolution may be re- voked, but it is not believed that the bill to be reported to the Senate next w^eek will carry any increase in to- bacco taxes. As a result of representations that the present tax exemption for eigarette paper books of less than twenty-five leaves is being abused by companies giving two such books with each purchase of to])acco, the com- mittee voted to make the cigarette paper tax apply to all books, regardless of size. During hearings on this question, the committee ^vas informed that from $900,000 to $1,000,000 addi- tional revenue could be secured by this change. — Lins. TOBACCO COMPANY EARNINGS X A recent article the Wall Street Journal states the tobacco industry's advance in pros- perity was less pronounced in 1931 than in 1930. Of ten leading compaiiles in various divisions of the industrv, five increased their earn- ings, one lost less than in the preceding year, and f(nir earned less. Leading cigarette manufacturers were unanimous in 1930 in showing larger earnings, but, last year, the Liggett & flyers Tobacco C^ompany had smaller earn- ings, the first drop in its net income in a decade. Aggregate earnings of the ten companies were $121,371,349, a new high record, but an increase of only $5,044,683 or 4.3 per cent, over the preceding year. In the preceding year, profits rose nearly $14,000,000 or 13.5 per cent, over 1929 's, which in turn had shown an increase of over $9,000,000 or 10 per cent, from the earnings in 1928. A factor contributing substantially to the increased profits of leading tobacco companies, despite smaller consumption of most tobacco products, was lower prices for raw tobacco. The American companies were invol- untary beneficiaries of a sharp drop in export demand for American leaf. American companies increased their purchases of leaf tobacco beyond estimated requirements, but about half of American tobacco crop is sold abroad., and the American manufacturers' increased purchases were less than the decrease in purchases from abroad. An- other factor aiding earnings of cigarette makers was the higher price for the finished product. A representative of the tobacco industry, appear- ing before the Congressional Committee on Taxation, termed the Government the senior partner in the to- bacco business. In tliat role, the Government suffered more last year than the junior partners from the efforts of tobacco consumers to avoid high-priced merchandise and to consume those products which, mainly because of lower rates of taxation, are cheaper. The total revenue for the Goveriiment in 1931, based on preliminarv consumption figures, was $422,- 200,000, compared with $444,000,000 in 1930. The most heavily taxed lines show^ed the greatest decline in in- come to the Government, while those taxed least mad© the best showing. Cigarettes, bearing a $3 a thousand tax, contrib- uted about $15,500,000 less revenue than in tlie year before. Cigars yielded about $3,000,000 less, the drop coming entirely in cigars priced at more than five cents eaeh. Nickel cigars pay $2 a thousand tax; cigars selling for five to eight cents pay $3 a thousand; those from eight to fifteen cents, $5; those from fifteen to twenty-five cents, $10.50; those selling for more than twenty-five cents, $13.50 a thousand. Consumption of Class A cigars (five cents each) gained during the year, but every drop of a thousand cigars in Class E (over twentv-five cents each) would require a gain of almost seven thousand in Class A to vield the Government the same revenue. ^lanufactured tobacco and snuff pay eighteen cents a pound tax, or approximately one-sixth the rate on manufactured cigarettes, and tlie lower tax eneourages substitution of these types of tobacco for cigarettes. Government revenue from snuff and manufactured to- liacco held steady last year, while other tobaeco rev(Mni(» was declining. A comparison of the revenue received by the Gov- ernment on various tobacco products with the earnings (Continued on Page 16) 16 52nd year THE TOBACCO WORLD May 1, 1932 May 1, 1932 Say You Saw It in The Tobacco World 52nd year 17 ■ \ TOBACCO COMPANY EARNINGS (Continued from Page 15) of the -company producing those products is difl&cult because most companies make more than one type of tobacco product. The most notable concentration is in the snuff business, where three companies, George W. Helme Company, U. S. Tobacco Company and American Snuff Company make virtually all of the snuff consumed in the United States. But, even there, the comparison of the revenue and the earnings figures is somewhat obscured by the fact that the IT. S. Tobacco Company manufactures three profitable brands of smoking tobacco in addition to its snuff business. The following table compares approximate Gov- ernment revenue from tobacco in the past two years : Revenue 1931 1930 Cigarettes $340,347,000 $358,874,000 IVfanufactured tobacco .... 59,039,000 59,177,000 Cigars 15,775,000 18,793,000 Snuff 7,117,000 7,220,000 Total $422,278,000 $444,064,000 The table would indicate that the Government re- ceives $3 in taxes on cigarette business for every dollar earned by the cigarette companies. However, since earnings of cigarette companies include income from the manufacture and sale of various brands of tobacco paying taxes as manufactured tobacco, the ratio is even higher in favor of the Government. For cigar companies the ratio is less favorable to the Government than would be indicated by the above table, because the eigar business is not concentrated to the extent that cigarettes and snuff making are. If earnings of other cigarmakers were included with the three considered, the ratio would be lower. Further, because of heavy advertising outlays made to intrench the firm in the trade, the American Cigar Company, one of the larger companies, has showm losses for two vears on a volume of business ft' which would yield several million dollars annually to companies well established in the business. The four leading cigarette manufacturers are American Tobacco Company, R. J. Reynolds Tobacco Company, Liggett & Meyers Tobacco Company and P. Lorillard Company. They probably manufacture about 90 per cent, of all cigarettes made in this country, but independents who, last year, offered cigarettes cheaper than the leading companies, cut into the busi- ness to some extent, probably obtaining a larger share than in many years past. The Earnings of Ten Leading Compajiies The following table compares earnings of the ten leading companies in the past two years : Companif 1931 1930 Am. Tobacco $46,189,741 $43,294,769 R. J. Reynolds 36,396,817 L. & IMvers 23,121,382 Lorillard 4,846,373 Gen. Cigar 2,720,667 Consol. Cigar .... 2,122,173 Am. Cigar '1,110,405 U. S. Tobacco 3,020,779 G. W. Helme 2,147,690 Am. Snuff 1,916,132 34,256,665 24,002,315 3,614,363 3,201,521 2,372,535 •1,590,870 2,950,818 2,331,501 1,893,049 Total $121,371,349 $116,326,666 •Loss. {Continued on Page 17) NINE MONTHS' WITHDRAWALS POR Cigars : Class A — United States Porto Rico CONSUMPTION First 9 Mos. Fiscal Yr. 1932 . . 2,742,313,880 -f 69,426,025 — Philippine Islands 131,851,085 + • — Decrease + Increase Quantity 91,373,230 45,446,905 15,773,055 Total 2,943,590,990 Class B— United States . . . Porto Rico Philippine Islands Total Class C— United States . . . Porto Rico Philippine Islands Total Class D— United States . . . Porto Rico Philippine Islands Total Class E— United States . . . Porto Rico ..*... Philippine Islands Total 56,139,600 815,750 987,169 57,942,519 61,699,380 209,304,156 1,582,000 173,652 211,059,808 - 336,450,858 - 2,942,236 - 495,188 894,876,618 — 339,888,282 890,441,572 4,063,644 371,402 55,504,611 18,200 5,282 26,555,702 6,000 4,038 55,528,093 — 26,565,740 9,481,457 500 14,412 7,033,806 2,600 55,069 9,496,369 — 7,091,475 Total All Classes : United States . . . 3,753.881,120 Porto Rico 74,324,119 Philippine Islands 133,229,350 Grand Total. 3,961,434,589 Little Cigars — United States . . . Porto Rico Philippine Islands Total 226,671,920 3,500,000 230,171,920 — 487,971,292 — 49,979,741 -h 15,045,108 ~ 522,905,925 36,514,906 1,050,000 Cigarettes : United States . . . 79,106,215,595 Porto Rico 5,662,200 Philippine Islands 1,376,630 37,564,906 —9,099,692,500 — 10,508,800 — 420.733 Total 79,113,254,425 —9,110,622,033 Large Cigarettes: L^nited States . . . Porto Rico Philippine Islands 3,463,195 699,500 200 1,333,919 1,100,500 5,600 Total 4,162,895 2,440.019 Snuff: AllU. S. (lbs.)... 29,212,558 658,011 Tobacco Manufactured (lbs.) : United States ... 245,115,178 Philippine Islands 845 Total 245,116,023 + 3,361,318 — 453 + 3,360,865 TOBACCO COMPANY EARNINGS {Continued from page 16) While inventories generally were reduced in value last year by the lower prices for tobacco, aggregate working capital of the ten leading companies was greater at the end of the year. At the close of 1931 they had $564,830,538 of working capital, an increase of $4,000,000 over 1930. The following table shows working capital for the last two years : Company Am. Tobacco . R. J. Reynolds L. & Myers . . . Lorillard Gen. Cigar . . . Consol. Cigar . Am. Cigar . . . U. S. Tobacco . G. W. Helme . Am. Snuff 1931 $125,398,620 128,242,251 151,134,177 57,808,008 25,743,946 17,137,125 26,329,112 16,121,696 8,071,472 8,844,131 1930 $136,191,117 125,827,916 139,917,273 67,803,249 25,349,051 17,399,427 23,226,724 7,951,525 8,338,767 8,698,518 Total $564,830,538 $560,713,567 Following are cash and inventory tables for 1931 and 1930. Cash Company 1931 Am. Tobacco $26,810,061 R. J. Reynolds .... 34,479,271 L. & Myers 27,075,001 Lorillard 13,812,652 Gen. Cigar 2,973,661 Cons. Cigar 1,215,041 Am. Cigar 344,832 U. S. Tobacco 3,790,355 G. W. Helme 2,053,233 Am. Snuff 1,377,410 1930 $24,101,551 33,458,341 33,021,432 16,976,386 3,357,211 1,322,986 338,711 3,751,258 1,931,179 1,351,509 Total $113,931,517 $119,610,563 Company Am. Tobacco . . . . R. J. Rejniolds . . . L. & Myers Lorillard Gen. Cigar Cons. Cigar Amer. Cigar U. S. Tobacco . . . G. W. Helme . . . . Amer. Snuff Inv 1931 $98,137,109 85,780,878 90,044.682 43,834,777 18,682,194 14,270,220 23,756,598 10,329,048 4,830,026 6,848,499 entory 1930 $108,237,558 91,464,477 101,131,855 48,348,634 20,026,288 13,044,414 20,339,026 10,875,419 5,128,719 7,262,177 Total $396,514,031 $425,858,567 CUBAN LEAF MARKET Acting Commercial Attache Albert Nufer, Havana, reports to the Commerce Department at Washington that the demand for Cuban leaf tobacco, which was active during February, fell off during March. The better grades of Vuelta Aba jo tobacco were fairly active, however, and while prices have shown little improvement, the undertone of the market is generally better. The strike of Havana cigarmakers continues. The various attempts to settle the difficulties by arbi- tration have failed thus far, and there is no indication when the strikers will resume work. Exports of Cuban tobacco and tobacco products were valued at only *A'^f/^tv»>.'iyi!^'ivgiijtwjiv8>!jtv»^P^lv8<^ Classilied Column ^ The rate for this column is three cents (3c.) a word, with I a minimum charge of seventy-five cents (75c ) payable 5 strictly in advance. \ Ulr«vlr«v1rrsx1rl«flr)«\1r«v1rlr8vlrlr»1^«^1rJ«v1^ FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco melCow and smooth In character and Impart a most palatable flavor HAYORS for smoking and CHEWING TOBACCO Write for List of Flavors for Special Brands BMTUN. AMOMATIZEI. BOX FLAVOIS. PASTE SWEETENEBS FRIES Sl BRO., 92 Reade Street. Ne^ York LOFT ANSWERS SUIT CQUISITION of control and operation of Hap- piness Candy Stores, Inc., by Loft, Inc., of New York, is defended in answers filed in Chancery Court in Wilmington, Del., last week by the two companies to two suits brought recently by Henry M. Behre, of New York. One suit asked for the appoint- ment of receivers for Happiness Candy Stores and the other asked the Court to order Loft to return to Happi- ness Candy Stores all its property and assets. Happiness Candy Stores denies in its answer that it is in an embarrassing financial condition or is in need of loans. If required, the answer states, loans in a substantial amount could be obtained readily. The company also declared that prior to a-cquisition of con- trol by Loft its affairs were in a failing condition and that receivership was inevitable. The answer states dealings and relations between the two companies have been fair to Happiness Candy Stores in every respect and have operated to its advan- tage. $1,137,176 during February, as rigainst $1,866,238 dur- ing the same month of 1931. Exports of leaf io])acco amounted to 2,279,931 pounds, compared with 3,418,354 pounds in February, 1931, while shipments of cigars dropped from 4,136,009 in Februarv of last vear to oiilv 472,815 in February, 1932. .1 MAY 15, 1932 18 52nd year Say You Saw It tn The Tobacco World May 1, 1932 i I Tobacco Merchants' Association Registration Bureau, S,t:V'?rokT cm Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An sllowance of $2 will be made to members of the Tobacco Mer- chants' Asaociation on each registration. Note B— If t report on a search of a title necestitatea the reporting of more than ten (10) titles, but less than twenty one (21), an additional charge of One Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-op-^ (31), an additional charge of Two Dollars ($2.00) will be made and so an aoditional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATIONS TOP KICK:— 46,026. For smoking tobacco. April 5, 1932. Penn Tobacco Coniijam-, Wilkes-Barre, Pa. ANTON CALLAERT:-— 46,027. For all tobacco products. April 12, 1932. Anton Callaert, Freehold, N. J. FORT PLAINS:— 46,228. For all tobacco products. April 12, 1932. Anton Callaert, Freehold, N. J. KENTSHIRE:— 46,022. For all tobacco products. April 9, 1932. George .Schlegel, Inc., New York, N. Y. DUNBAR: — 46,025. For all tobacco products. February 25, 1932. Jacob Rich, New York, N. Y. TRANSFERS LADY HORTENSE:— 45,709 (T. M. A.). For all tobacco prod- ucts. Registered April 5, 1930, by Consolidated Litho. Corp., Brooklyn, N. Y. Transferred to F. W. Sonimerfeld Cigar Co., Miami. Fla.. April 11, 1932. GREEN HAT:— 37,013 (P. C). F'or cigars. Registered February 11, 1930, by Benson & Hedges, New York, N. Y. Transferred to The (irecn Hat Cigar Co., Cleveland, Ohio, February 10, 1932. ESCO:— 31,622 (Tobacco Leaf). For cigars, cigarettes, cheroots and tobacco. Registered May 7, 1906, by H. Anton Bock & Co., New Y'ork, N. Y. Transferred to Essex Cigar Co., Detroit, Mich., in 1927. DON RAMON CABRERA:— 27,897 (Tobacco Leaf). For cigars, cheroots, cigarettes and tobacco. Registered June 30, 1904, by Calvert Litho. Co., New York, N. Y. Transferred to American Box Supply Co., and re-transferred to Essex Cigar Co., Detroit, Mich.. January 31. 1927. ROBERT MANTELL:— 42,004 (T. M. A.). For cigars. Regis- tered January 13, 1921. by American Box Supply Co., Detroit, Mich. Transferred to Essex Cigar Company, Detroit, Mich., De- cember 28, 1921. ESSEX: — 44,157 (T. M. A ). For cigars only. Registered February 13, 1925, by American Box Supply Co., Detroit, Mich. Transferred to Essex (Tigar Companv, Detroit, Mich., April 9, 1925. WYNWOOD HALL:— 45,411 (T. M. A.). For all tobacco prod- ucts. Registered February 12, 1929, by George Schlegel, Inc., New York, N. Y. Transferred to Benjamin Kane, Philadelphia, Pa., April 13, 1932. CHARMWOOD:— 45,721 (T. M. A.) For all tobacco products. Registered May 9, 1930, by George Schlegel, Inc.. New York, N. Y. Transferred to Eloy R. Montero. Philadelphia, Pa., April 13, 1932. JOLLY PAL: — 39,531 (United Registration Bureau and Tobacco Record). For cigars, cigarettes and tobacco. Registered January 26, 1916, by Dave S. Saqui, New York, N. Y. Through mesne transfers acquired by Paramount Cigar Co., Inc., New York, N. Y., and re-transferred to The S. Frieder & Sons Co., Cincinnati, Ohio, December 29, 1931. LA MUNA: — 25,752 (Tobacco World). For cigars, cigarettes, che- roots, stogies, chewing and smoking tobacco. Registered March 31, 1913, by National Lithographic Co., New York, N. Y. Through mesne transfers acquired by Consolidated Litho. Corp., Brooklyn, N. Y., and re-transferred to The S. Frieder & Sons Co., Cincin- nati, Ohio, December 31, 1931. DUNHILL INTERNATIONAL LOSSES Dunliill International, Incorporated, reports for 1931 net loss of $277,268, compared with net profit of $21,257, or fourteen cents a share in 1930. 11 WHITE ADVERTISING MANAGER LEE & OADY Uerek White, formerly with C. C. Winningham, Incorporated, Detroit, has been appointed advertising manager of Lee & Cady, Detroit wholesalers. PRODUCTION AND TRADE OF PHILIPPINE TOBACCO HE total Philippine production of tobacco dur- ing 1931, as reported by the Philippine Bureau of Plant Industry, was approximately 95,936,- 000 pounds on an area of 183,818 acres, or about 6 per cent, less than in 1930, reports Assistant Trade Commissioner Clarence P. Harper, to the To- bacco Division of the Department of Commerce. Six of the most important tobacco producing provinces ac- counted for 63 per cent, of the total area cultivated. The average yield per acre for the entire area planted was 1318 pounds and the average price paid to growers for the total production was 3.9 cents per pound com- pared with 4.6 cents in 1930. The following statistics show production and the average price per pound paid to growers for the six leading provinces: Production Cents Provinces in pounds per pound Isabela Cagayan La Union Pangasinan Ilocos Norte Ilocos Sur 27,663,868 12,400,600 11,224,236 13,916,714 5,020,888 1,450,186 4.1 3.3 4.6 3.2 3.0 3.0 * UnoflScial. The Bureau of Plant Industry, in its surveys, in- cludes a numlx^r of areas which are not ordinarily con- sidered by local tobacco brokers and exporters. For instance, the area cultivated in Cebu was 17,297 acres; Iloilo, 8649; Leyte, 4201; and Negros, 6672. These areas, however, supply only insignificant quantities for the export trade and much of the production is con- sumed locally. The crop as a whole for 1931 was re- ported of better quality than the previous year. Tobacco exports during 1931, as compiled from unofficial sources, showed a decrease and amounted to 43,288,000 pounds classified as follows: Leaf, 39,254,- 000 i)ounds; strips, 3,965,000 pounds; and scrap, 69,000 pounds. Official statistics will not be available for several weeks. The cigar trade during the year showed a slight increase compared with 1930 and the estimated ex- ports to the United States, as obtained from unofficial sources, totaled 165,000,000 pieces as compared wuth 153,000,000 in 1930. The report of the Philippine Bureau of Customs covering eleven months of 1930 showed cigar exports at 168,184,000 pieces, of which 151,366,000 went to the United States. There were several strikes in cigar factories dur- ing the year and production in a few was held up for a time. Local consumption for the first eleven months, as reported by the Philippine Bureau of Internal Revenue amounted to 79,400,000 cigars and the num- ber produced during this period totaled 255,000,000. The total production of cigarettes for the first eleven months of 1931 reached 3,902,000,000, of which 31,400,- 000 pieces were exported and the remainder consumed locally. It is yet too early to venture a prediction on the coming crop as much will depend on weather condi- tions. It was reported, how^ever, that heavy rains dur- ing December and early January destroyed about one- third of the seed beds but planters quickly set about to make new ones in order to recover the lost seeds. This will probably delay planting, but wdth favorable weather, a regular crop is expected. VOLUME 52 DECEIVED f^i/^Y [ -J J932 S. B^artment or A No, 10 o IIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIH ■ ■■■mil J 11 n I Ml IIT I ■■- 1 11 ■■ IA»*^^B*>« ■«a-^*» 11 tt iMW H Itii ■■* ■** > *tSt Oh 1 ^e <• II tuilihin' AliH !^ hill I'm n'markin". ^oiTII kilih iIhiii Hy* aiui «l<»|> thai barkin*. I*. Lorillaril Co., ii automatic nia<'liiiu''s on*<'r A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AUTOMATIC AGE 2810 S. Michigan Avenue Chicago lUinois V^ PURE TOBACCO . . . NO ARTIFICIAL FLAVORING I li.il"- \s hv < ». < .-. '!<• nol -I I. It (I I I lie ihinal or taini lh< Imatli . . . H ,ill«»- |^hi^lt•-^M•a|l|M•^L •>! «'i). NOT A COUGH IN A CARLOAD "BEST OF THE BEST" ^^^^^^^^^^^ A. SANTAELLA & CO. Office, 1181 Broadway, New York City PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST., PHILA.. PA. } > ^^^^^^j^v^y^^yjMjmjmjmjmjmmmmjmmjisi^ \ I After all ^nothing satisfies like a good cigar ^^tfifllS BOXED IN WOOD Keeps cigar fragrance alive Keeps display windows lively TV r<> O'i'llKli t'orm of icH'Uaiiiiig I V l<(*eps your ciKars so (Munphtt'h' aJive, so conslaiilly ami advaii- tajreonsly on sale, a« woodoii boxog. All aloiiii: tlio line, from mainifac- tiiror 1(» iMnisuinor, the cigar that is box4;d iii wondisllH' pr rf erred c'li^nr. TJic IK-li. cloaii \V(mmI snu'll Idcnds with the k>at'*s iiatiiral traKinin*' in plndlKM' a lilKT. Illi'llnW I r. fllul;' in \itiiiu' ariiiiMi--tii I-. men w liu \aliic ij;(Hn\ (•iirai> tor their ricliiiOSB, color «uid tiiiisli, aiicl siiioko tliom for un- adulterated enjoyment, insist on cigars packed in wooden boxes be- cause ilicv know what a difference wood uau make. To many smokers, a cigar not lioxed in wood is no cierar at all. ^'> I ..cketl ill wood for {'oiiNcnit'ntM' in haiidiiiiLi' ainl -htriiiu', for llic In'Mcr (lfi"-iiiL:' of window- and c;i-c-. In >i-1 on wood. naliir<''- own c<»n laiiicr. h iia> no -'il»'-1 it iilc. WHEN BUYING CIGARS Remember thjt Regardless of Price THE BEST CIGARS AKE PACKED l!N WOODEN BOXES Volume 52 THE TOBACCO WORLD Number 10 Established 1881 TOBACCO WORLD CORPORATION Pablishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3. 1879. $2.00 a Year PHILADELPHIA, MAY 15, 1932 Foreign $3.50 EDITORIAL COMMENT N another page will be found illustrations of German cigar labels, together with an article by J. W. Healev. These illustrations fall far short of doing justice to the actual lithography as displayed in the studio of George Swil^er at 210 .Madison Avenue, New York City. Mr. Healey who has written the story is associated with Mr. Switzer. It is impossible to convey by written word the sur- prising innovations introduced in packaging by Mr. Switzer. Mr. Switzer calls the exhibit the First Inter- national Packaging Show. The cigar labels are but a small part ot the exhibi- tion. We spent a most interesting hour observing and learmng about the progress of attention-attracting packages and the possibilities that can be developed by an expert. Had our own time not been limited we would have stayed much longer. We highly recommend to all cigar manufacturers a visit to this most unusual exhibit. It is made up of a selection of the best designed and packaged prod- ucts in the world, and offers an infinite range of choice and taste in materials and containers. Mr. Switzer states that color, imaginative design, simplicity and convenience are the four major charac- teristics of good packaging. Color is the first attention- winning property — not necessarily strong color, but pure color used appropriately. Visitors have shown particular interest in an orig- inal design by Mr. Switzer to be used as a frosted rasp- berry container. This is nothing more than a simple white cylinder banded with a raspberr>^ against which the name of the product is set in white. The colors are not flat but have texture — the white suggestive of frost, and the red of raspberries. A container for pine tree soap is sure to draw the eye. An actual photograph of pine needles covers the box and a window reveals the number of cakes con- tained therein. The tw^o combine to suggest the aroma and freshness of clean pine woods. Tiny English honey jars and Austrian cigarette cases attract by their simplicity. In both cases — though the jars are of porcelain and the cases of paper — only one color is used. White packages embossed with white and lined with plain metallic green also won popularity through the simplicity of their design. Outstanding in the number of comments received was a coffee container because of its convenience. A pouring device in the top serves as a self-measuring 4 spoon. In size and shape it was adapted to fit women's hands and to take minimum shelf room. Also because of its design it would be recognized at a glance as a coffee container. Consumer visitors lingered over those packages which were attractive and easy to handle. The interest of manufacturers naturally was devoted to those con- tainers wdiich "seemed to have the maximum of atten- tion value at the lowest cost of production. Old designs when compared with a new creation by Mr. Switzer look cheap in comparison. Actually in a great many cases the simplicity of design, although appearing to be far more costly, results in appreciable economies in production costs over the old package. A certain gi-eat hotel in New York which has its own brand of candy had Mr. Switzer prepare a new de- sign for the package. It was readily approved by all but the w^oman in charge of the candy department. She did not believe that the trade would recognize the new package. However she agreed to make a one week's test by displaying the old and new packages together. Not only did the new package sell 100 per cent., but sales increased by a considerable percentage as well. All we can add is to urge all those who are inter- ested in new packaging ideas of superior attention- attracting value, combined with economies in manufac- turing costs, to call on Mr. Switzer at 210 Madison Avenue, New York City. asted Your Throat ^rof ctlow -.ogttlwtt lrrltatloii~ogatw»t c«wgli Cofir.. 1032. Th« Ainrrinn Tobwro Co. O. K. AMERICA TUNE IN ON LUCKY STR,KE-60 n.«l in-Us u.* *. ,^'. /b... f.^. c.che..a. -nd W-«- Wi^h«1l.^o.. .o«l^ o/ UhIo, K«:om« U. n^. o/ U>n,.rr^. <„eTy Tuttday, ThHT$day and Saturday tvmng over N.B.C. nrtwork*. 8 52nd year THE TOBACCO WORLD May 15, 1932 May 15, 1932 THE TOBACCO WORLD 52nd year I 4 *l i -■M— H— ■■ ■■■-1^-i M^— «»H— ■■ H ■■ ■■ n M M |»^— M—«i^—l»^—«»— «►—«»— — CIGAR BOXES— 1932 MODELS By J. A, HEALEY mn »■ n H ■■ M ■■- -«■ Mi^— «« I These designs, the work of Professor CO. Czeschka, for the cigar boxes of L. Wolff, cigar manufacturer of Hamburg, Germany, are in- cluded in a collection of more than 400 cigar and cigarette packaging designs selected by George Switzer, New York designer, for the international packaging exhibit now on view in his studio at 210 Madison Avenue. HAT'S wrong with this picture?" a customer might well ask himself on entering a tobacco shop or department. And if he were at all observing, he would answer for himself, ''The cigar display." Look at the various brands of cigarettes, neatly ranged in rows and racks, attractive in color and simple for the most part in design. Convenient in size and shape, they can be carried in a man's pocket or in a woman's purse. Look at the alarm clocks, for some reason a char- acteristic feature these days of tobacco shops. A few years ago they were tinny contraptions, with various excresences for legs and bells and stems. Today they are neatly designed to enclose all these, and to sit solidly on a table. Their cheap tinny contours are now enameled to harmonize with various backgrounds with the result that they can be used without too much pain on a bedside table or even an office desk. Look at anything and everything in the shop, ex- cept the cigars and their containers, and you will see a constant change in presentation and sales appeal, Courtesy of Advertising Arts Look at the matches, for example. A few years ago they were two or three inches long and enclosed in a large unwieldy box. Then came the smaller box which, though inconvenient, could be carried in a pocket. Then came the match packet and finally the cigarette lighter. Photographs by Adams Studios reflecting on the part of the manufacturer a constant effort to keep abreast of consumer taste and desires. Consider in the same way the products of other manufacturers in daily use — the automobile, refriger- ator, radio, clothes, anything. So swift has been the (Continued on Page 12) xV pointer on tobacco . . • This good old Kentucky Burley owes its extra richness and fragrance to " Wellman's Method" — an old-time tobacco secret. The Rough Cut bums more slowly and com- pletely, so you get what every pipe smoker wants — ^^^a cooler smoke and a drier pipe." Handy pocket pouch of heavy foil. Keeps your tohfuxo in better condi- tion and makes the price lower. Hence \f)p YOU CAN DEPEND ON A LIGGETT & MYERS PRODUCT 10 52nd year THE TOBACCO WORLD May 15, 1932 May 15, 1932 Say You Saw It in The Tobacco World 52nd year 11 I 'I News From Congress _ -AND FtDERAL Departments From our M^ashington Bureau 622Alb£e Building TILL without any provisions for increasing taxes on tobacco i)roducts, the new revenue bill was taken up for consideration by the Senate May 12th, with a view to completing and sending it to conference by the end of the month in order that Congress may conclude its deliberations and adjourn June lUth. Barring the unlikely contingency that the Senate may adopt a to])acco tax increase on an amendment offered from the floor, the new tax law will not carry any additional tobacco taxes, although the industry, in common with others, will l)e subject to a number of tax increases and new taxes. Throughout the two weeks during which the Sen- ate Finance Committee had the measure under con- sideration, the (juestion of tobacco was brought up re- peatedly, only to be rejected, largely through the de- termined ojjposition of Southern meml)ers. Finding itself in a jam for which it was roundly censured by Secretary of the Treasury Mills, just be- fore it concluded its work on the bill, the Finance Committee voted twice on the su])ject of tobacco, the first vote being to determine whether automobile rates should be increased or an increase of one-sixth or one- tenth made in the tol)acco taxes. Tobacco won and automobile taxes were increased bv a vote of ten to nine, as follows : For heavier tobacco taxes: Senators Couzens of Michigan, Keyes of New Hampshire, Bingham of Con- necticut, LaFollette of Wisconsin, Thomas of Idaho, Jones of Washington, Metcalf of Khode Island, Walsh of Massachusetts and Gore of Oklahoma. Against heavier tobacco taxes: Senators Smoot of Utah, Watson of Indiana, Keed of Pennsylvania, Shortridge of California, Harrison of Tennessee, King of Utah, George of Georgia, Barkley of Kentucky, Connally of Texas, and Hull of Tennessee. The final action of the committee with respect to the tobacco taxes was a vote on whether they should be increased 10 per cent., as recommended by Secretary Mills in outlining a program for completion of the bill. This was defeated, eleven to seven, as follows : For: Senators Couzens of Michigan, Keyes of New Hampshire, Bingham of Connecticut, LaFollette of Wisconsin, Thomas of Idaho, Jones of Washington and Connallv of Texas. Against: Senatoi-s Smoot of Utah, Watson of In- diana, Reed ot* Pemisylvania, Shortridge of (California, Metcalf of Khode Island, Harrison of ^Iississi])pi, King of Utah, George of Georgia, Walsh of Massachusetts, Barklev of Kentuckv and Hull of Tennessee. The only change made in the ])ill by the committee wliich directly affects the tobacco industry w'as the re- vision of Section 402 of the Revenue Act of 1926 to make the tax on cigarette papers apply to books of any size instead of, as at present, only to books of more than twenty-five sheets. This was done after the com- mittee had been told that certain manufacturers of smoking tobacco were evading the present law by giv- ing two books of less than twenty-five sheets with each package of tobacco. The original exemption of small books was made in order that a few sheets of cigarette paper might be given with each package of tobacco. The bill prepared by the Finance Committee is estimated as raising $1,010,000,000, which, with an- ticipated budget savings of $281,000,000, will meet the $1,241,000,000 required to balance the budget by the end of the fiscal year 1933. The measure carries normal individual income tax rates of 3 per cent, on the first $4000 of net income 6 per cent, on the next $4000 and 9 per cent, on the remainder, as compared with the House rates of 2, 4 and 7 per cent., with surtaxes ranging up to 45 per cent, against the House maximum of 40 per cent., from which $155,000,000 is expected. The committee provided a corporation income tax rate of 14 per cent., against the House rate of 13Mi per cent., but eliminated tlie penalty of IVn per cent., mak- ing a rate of 15 per cent., levied by the House against corporations filing consolidated returns. The House exemption of $1000 for corporations with net income not exceeding $10,000 also was rejected. The corpora- tion provisions of the committee are expected to raise $52,000,000. Administrative amendments and the es- tate and gift provisions will raise an additional $85,- 000,000. A number of other levies are included in the bill which will affect the toDacco industry, among them the taxes of 4 per cent, on automobiles, 3 per cent, on truck^ and 2 per cent, on accessories not including tires, to raise $73,000,000; a tax of five cents per pound on im- ported crude rubl)er, to raise $53,000,000; taxes of 5 per cent, on telegrams and leased wires, ten cents each on cable and radio messages, and ten cents on tele **)l:one conversations costing between fifty cents and $1, fifteen ci-nts when costing lietween $1 and $2, and twenty cents on calls costing more than $2, to raise $24,()0(),000 ; four cents per share on stock and bond transfers and ten cents per $100 on stock and bond issues, to raise $35,000,000; two cents each on checks and drafts, to raise $95,000,000, and an increase to three cents in the rate of postage on first-class mail and in- creased rates for second-class matter, to provide $160,000,000. The measure also carries taxes on lubricating oils, imported oils, coal, co]>i)er and lumber, admissions in excess of ten cents and a few other services and com modities. 1 e MAY ® ^ I 2 3 4 5 6 7 i 8 9 10 11 12 13 14 ! 15 16 17 18 19 2^ fi^ '^, A M 25 26 2ij 28 |29^ 30 fel *9«^ PHIL M. PHIJLOFAX,* D.B.I. (the retailer^s friend) says: Copyright 1932 Bayuk Cigars, Inc. n. ^^Coming events cast their suggestions before them^^ Looked at the calendar lately? Have you noticed that for most folks there are three glorious play-days coming, all in a cluster? . . . Decoration Day, and Sunday and Saturday immediately preceding? Mean anything to you? If his- tory proves anything, I'd say it spells O-p-p-o-r-t-u-n-i-t-y. It's the first real chance thousands of smokers have had in months to get away from the daily grind. . . . And it's our own fault if they don't realize that the way to enjoy the holiday to the utmost is to have plenty of cigars tucked into the pockets of their cars, coats or gripsacks before they set sail. I say we can sell 'em a whale of a batch of cigars if we'll only organize our ambitions and energies. We don't have to be clever . . . just persistent. And the time to begin active campaigning is at least a week ahead. Jones, a customer, comes into your store. "Going away for the holiday?" you ask, casually. Answer is probably "Yes." That's the time to sell him a box, or a bunch of five-packs, of his favorite brand. You already know all the arguments why he should buy in advance — in quantities — from you — and right now. . . . Prices right — cigars sure to be right — no danger of getting wrong shade or size, or dried-out cigars — etcetera and etcetera. And don't forget that there are other ways and occasions for landing box sales: Uncle Sam still delivers circulars and letters. Lots of people still have telephones. Window AYfJK BR displays and signs still exert a silent selling power through the eyes of passers-by. (See suggestion in illustration above, for hand-made window sticker.) Are you making use of them to interest — Folks in the neighborhood who are throwing parties; Proud papas who are celebrating the arrival of new babies; Families who are planning week-end* or summer-vacation trips; Wives who want to give husbands something for their birthdays; Sons and daughters who want to remember Dad on Father's Day (coming soon). Just remember, in this finicky old world of ours you don't get much that you don't have to ask for or go after. It's as true of cigar sales as it is of political jobs. (7K^ D. B. I. ^Anociaied with BAYUK CIGARS, INC., Philadelphia Makers of fine cigars since 1897 P. 5. We are in the midst of an era of great changes — in living conditions, commodity values, merchandising methods. What new sales ideas are you using? Write 'em down. Send Vm in. Others are doing it — in behalf of their fellow-retailers. Why not you? AMDS BUILD BUSINESS BAYUK PHILADELPHIA CIGAR (BAYVK "PHILLIES') BAYUK HAVANA RIBBON BAYUK MAPACUBA PRINCE HAMLET CHARLES THOMSON Lhten in-and iWI other, to listen in— on He "Bayuk S,«g Parlr" o.er « JZ and netm,rk, Sunday erenmg. 12 52nd year THE TOBACCO WORLD May 15, 1932 :^rav 15, 1932 Say You Saw It in The Tobacco World 52nd year If; ■ CIGAR BOXES (Continued from page 8) development in almost every field that it is not neces- sary to compare this year's Chrysler with the model of several years ago. Nor the shoes of today with the high-laced models of another decade. They change from season to season, offering always something new, colorful, up to date and keyed to the mood of the con- sumer. Then look at the cigars and their display. If everything in the shop were to be swept away except the cigar counter, could you tell whether the year were 1932 or 1902? The realization that the cigar container has be- come '*the old lady from Dubuque" among products What are these formulas? First, to attain brand distinction through the use of an individual trade sym- bol, slogan, copy theme, art theme, merchandising pol- icy or a combination of any or all of these factors. Second, by tieing up this brand distinction with his dealers, his local and national advertising programs, and, at the point of sale, his retail outlets. One instance is sufficient to illustrate the practical value of this aliveness to current demand. The manu- facturer of a famous household cleanser recently re- placed its drab tin container with another, smaller and more shapely in size and brilliant in color. Within five months his sales increased 102 per cent, without any additional sales effort or expenditure. (Incidentally, it should be mentioned that his production costs were, at the same time, cut 27 Mi per cent.) The response to Courtesy of Advertising Arts is obvious to everyone apparently but the cigar manu- facturers themselves. True, some manufacturers have changed the quality of the wood which goes into their boxes so that now instead of using real Spanish cedar, they substitute a coated paper with a process that gives the effect of fibred cedar. But the containers them- selves remain the same. The same many colored lith- ographed reproductions of frock-coated gentlemen whose names, in many cases, mean nothing to the mod- ern generation of cigar smokers. The same absurd medley of unorganized and unattention attracting types. Perhaps the most serious lack of foresighted- ness from the standpoint of the consumer is that al domestic cigar boxes look alike. This similarity of design, this clinging to tradition, however, presents a ripe opportunity to some cigar manufacturer with a national distribution and ambition to dominate the cigar market. Such a manufacturer by following the merchandising formulas which have succeeded, and are succeeding, in other lines of industry could create the same profit making results for himself. Photographs by Adams Studios the more attractive container was phenomenal. Sales people voluntarily placed it in the front sections of counters and display cases. Window decorators, tired of the monotony and drabness of other old type con- tainers, featured it in striking new window displays. Dealers who previously had refused to accept the cleanser were easy to sell and several asked to take it on. Cigar manufacturers abroad do themselves and their product much better. The designs made by Pro- fessor Czeschka for the cigar boxes of L. Wolff, cigar manufacturer of Hamburg, (jermany, are a case in point. These boxes now have a distinction that at- tracts the eye at once. Colorful, simple in theme, smart and pleasing, both to the consumer — and, more im- portantly perhaps, to his wife to whom most cigar boxes, especially when brought into her home, are an eyesore — they dissipate at once the idea that the cigar is related to the days of the horse and buggy. They (Continued on page 13) "Aged In Wood"— A Grand Slogan For Your Good Cigars **Aged In Wood"— What happy memories it recalls! And those who smoke cigars for their full flavor and rich aroma insist that only wooden boxes properly age and ripen them. Smokers identify good cigars by the wooden container. Experienced manu- facturers know that cigars can be kept in proper condition in wooden boxes at all times. AUTOKRAFT BOX CORPORATION produces wooden cigar boxes of all types, including boite nature. The flexibility of its manufacturing methods, and its numerous locations for fabrication and distribution, enable it to meet promptly any changes in the customer's requirements. Phiia.,Pa, AUTOKRAFT BOX CORPORATION rlZt^w Hanover, Pa. Chicago, III Cincinnati, Ohio LIMA OHIO Detroit, Mich. Kansas City, Mo. A Natioi\ Wide ScrViCC Wheeling, W. Va, CIGAR BOXES (Contimied from page 12) give new life, new interest to the cigar, suggestive of modern up-tD-date usage, harmonizing with his motor car, his clothing and liis accessories. In a word, cigar boxes and their labels should r fleet the qualities of the cigar within by the use of a package design with a purpose and clean, fresh, stimu- lating colors. Is it not sound constructive business practice to study and adapt the formula concerning successful merchandising of several of our domestic industries who can show a substantial profit by bringing up to (late the policies of their merchandising plans, know- ing that the product is good, that the product had sold successfully, and that the greatest competition we are lacing today is change and adjustment to that change. CONSOLIDATED CIGAR REPORT The Consolidated Cigar Corporation and subsid- iaries report for the quarter ended March 31st net profit of $244,536 after interest, depreciation and Fed- oral taxes, equivalent after dividend requirements on the 6V2 per cent, prior preferred and 7 per cent, pre- ferred stock to fifteen cents a share on 250,000 no par sliares of common stock. This compares with $478,547, or $1.04 a share, in the first quarter of 1931. C. C. TAFT TO JOB "MURIEL" The C. C. Taft Company, Des Moines, Iowa, has been appointed by the P. Lorillard Company to dis- tribute their ** Muriel" and ** Rocky Ford" brands in their territory, and have been successful in making many new placements on these brands. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH, Wheeling, W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Preiident JULIUS LICHTENSTEIN, New York. N. Y VicePretidenI WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL, New York, N. Y Vice-President H. H. SHELTON, Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treaaurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK. Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN, New York, N. Y First Vice-President IRVEN M. MOSS, Trenton, X. J Second Vice-President ABE BROWN", 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President 14 52nd year THE TOBACCO WORLD May 15, 1932 RETAIL STORE PROBLEMS So ynany persons are unaware of the many aids to 'business ivhich have been carefully prepared by the United States Government, and so many of those ivho are aivare of these facilities fail to take advantage of theyn, that we are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) RETAIL STORE LOCATION (Continued from previous Issue) Physical Factors An analysis of the transportation facilities will show the number of railroads serving the city and whether there are water routes available for use, thus offering opportunities for alternate carrier service. Such transportation facilities would probably have more weight in the choice of the city for a retail store when considered from the point of their effect upon the future development of the city. Some cities are so located that they become a natural outlet for the sur- rounding country, and their rapid growth is assured almost from the start. It is well to study the avenues of approach to the city, both those existing and the possible future devel- opments. Though railways, both steam and electric, play an important ])art in the transportation problems, consideration must be given to the highways as consti- tuting an important feature in the whole transportation study. Thought is necessarily given to the distance of the city from the retailer's buying market and the possible effetl upon the length of time for delivery. Where can new merchandise be purchased? Are wholesalers nearl)yf These are among the questions that must be considered. Market or Trade Territory Before deciding to locate a retail store in any com- munitv a studv of the local market with relation to the question of the economic need of another such store is the logical i)rocedure. The situation with respect to com|)elition is an important point. How many and how large are the present stores? What is their financial strength ? Do they carry a sufficient stock of merchan- dise and what service do they offer to their trade? It does not necessarily follow, however, that because com- petitors show ai)athy and small sales that there are no l)otential sales. It frequently has been found when a new and thrifty merchant enters the retail field that not only his business is successful, but also that the business of his competitors increases. A potential local market may exist and may only need development, but if the local market is fully expanded and taken care of, a ncNV merchant will have to rely upon his ability to attract trade from his competitors, either by rendering an improved or special service or by selling at a lower price. What service policies will be expected in the new location can be ascertained beforehand by observing some of the practices of the local market. In some localities customers may require delivery service and long-term credits, while in others the cash-and-carry system may be satisfactory. The requirements of th( customer must determine to a large extent the type of store to be operated. Besides an analvsis of the local market, a studv of the surrounding trade territory might prove to be ex- tremely valuable in determining the advantages of the city for the store. The industries of the entire territory may be profitably studied along much the same line as the local industries, especially with regard to size, char- acter, and possible future development. The surrounding agricultural conditions often play an important part in the retail life of a community, especially in the West. How large and how important a place agriculture holds and its possible effects upon the retail business can be estimated as a result of care- ful study. A review of the crop production for a num- ber of years back will reveal something of the stability of the farmer's income, particularly if production sta- tistics are supplemented with data on the fluctuations in selling price for the corresponding years. Consider- ation is well given to the seasonal character of the farm products, to whether the crops all come within a short time so that the farmer has much money part of the time and little at others, or whether production is diver- sified so that if the season is bad for one crop the farmer may still have money gained from the other crops. The transportation facilities of the surrounding trade territory may affect to a large degree the amount of trade that is drawn therefrom. The number of elec- tric lines serving the city and the rates and conven- iences of these roads; also the number and condition of the highw^ays used by bus lines and automobile traffic to surrounding points, may be factors instrumental in drawing trade. Along the same line as transportation to and from the city comes the problem of delivery service. Deliv- ery to the neighboring communities may be accom- plished by means of cooperative delivery service, parcel ])Ost, or private carriers. Such plans require analysis as to service and cost. Some study of the customs of these possible tribu- tary communities may be carried on with profit. Are the people accustomed to going to some local gathering place, as, for example, a courthouse town, to make their purchases! Do they purchase largely through mail- order houses? Are the retail stores that serve them efficient as to merchandise handled and as to service rendered? These and other similar questions might be raised. Probably a large part of the surrounding trade ter- ritory will have to be developed by advertising. Then it is necessary to determine whether the contemplated business is adaptable to an advertising appeal. If it is, the question arises as to whether there are advertis- ing mediums of the desired kinds. Are there daily or weekly newspapers; and, if so, how^ many out-of-town subscribers have they! There is also the possibility of direct-mail advertising. Many large cities draw the shopping trade from a long distance, as, for instance, Boston and New York. From the viewpoint of th** small-town merchant, the attraction of the city store is (Contitmed on Page 16) May 15, 1932 THE TOBACCO WORLD 52nd year 15 Hi OLD D. B. I." GIVES RULES FOR SUCCESS ^HIL M. PHULOFAX, D. B. L, who is an ex- tremely busy man, was found hard at work at eight o'clock when our representative called on him at the Bayuk offices in Philadelphia. Mr Phulofax, or *'01d D. B. I.,'' as he is now fondly called, is making preparations for his annual tour of the United States, and, although he expects to remain in telephonic communication with the home office, he had much to put in order before he left his desk in charge of his competent secretary. Therefore he handed us his typewritten message which he hopes will give some food for thought to his retailer friends throughout the country. ''Building a business is like building a house. 1 talked in my last message about the foundation, con- fidence. Once that is laid, the structure must have four sturdy comers to support the roof, and if you plan to keep a roof over your head nowadays, you've got to build carefully. These four pillars are the ones which I've found absolutely essential: **The first, HAVE THE GOODS. You must have something to sell, which means that you must buy be- fore you can sell. Moreover, you must keep your good brands always in stock. When a fellow has tried more than once to buy something he w\ants, only to meet the answer that you're sold out— more coming in next ^veek— he will turn his steps in some other direction. ''Second, KNOW YOUR GOODS. Know your stock as you know your old shoes. Be able to lay your hand immediately on what the customer asks for, or what you think he might want, in case he's not sure liimseif. Do some homework and have the answer ready. If a cigar is domestic, know what kind of wrapper is used and whether Havana or domestic filled. If a clear Havana, know everything about the brand vou can. "Third, SHOW YOUR GOODS. Take a tip from the wife, who always likes to see what she's getting. Be sure that each box and its contents are visible, not hidden under some other brand or behind the counter. See that the boxes look well fed and well dressed. If vour salesmen supply window cards or other display aids, make the best of 'em. They are meant to help vou. ''Fourth, SELL YOUR GOODS. You have them, vou know them and you show them, but you've got to soil them. You can't expect your trusty smokes to talk for themselves— not unless your 're a ventriloquist. If a man wants one cigar, he's a potential market for more. ''That's the framework for your business. But once made, you can't sit back and let it go to ruin. Every prop must be kept in good repair if you expect your building to stand in all kinds of weather. Look to your props I" WALGREEN EARNINGS Walgreen Company and subsidiaries report for the six months ended March 31st net profit of $787,546, after charges and Federal taxes, but before subsidiary preferred dividends. This is equivalent, after sub- sidiary preferred dividends and Walgreen 6^ per cent, preferred dividend requirements, to seventy-eight cents a share on 801,980 no par shares of common stock out- standing at close of the period. This compares with $855,894, or eighty cents a share, on 858,409 common shares in the first six months of the previous fiscal year. LORILLARD COMPANY SELLING MORE LORILLARD COMPANY'S earnings in the early months of 1932 have been running well above 1931. The price of "Old Gold" cigar- ettes was raised to $6.85 a thousand, from $6.40, July 8, 1931. Not only the higher price of cigarettes, but three other factors have helped Lorillard in 1932. The retire- ment of all outstanding 51/2 per cent, bonds last year, reducing funded debt from $33,679,150 at the end of 1931, to $19,740,000 now means an interest saving, after allowing for return on money used to retire the bonds, of around $500,000 this year. A second important fac- tor is the increase in smoking tobacco sales. Sales of the company's leading brand of smoking tobacco, "Union Leader," in 1931, were practically 100 per cent, above 1929; so far this year, they are about 25 per cent, above 1931. This tobacco is suitable for either pipe or hand- rolled cigarette. Both these latter forms of smoking tend to increase in a depression. Lorillard also has recentlv introduced a new^ five- a cent package of pipe tobacco, "Hurley Burley," which has been meeting success w^hercver introduced. ^lanu- facture of this low-priced product has been made pos- sible by lower prices for leaf tobacco. This drop in leaf tobacco prices is a third factor in Lorillard 's better earnings for 1932 to date. While raw tobacco prices have been dropping for several years, the decline is much more important in Lorillard 's costs this year than previously, because of the custom of buying tobacco two to three years before it is to be used, to allow for aging, and then averaging costs of the crop over a three-year period. Lorillard 's other products are making good show- ings. Little cigars, Turkish cigarettes, and chewing tobacco are in their line. "Rocky Ford" five-cent and "Muriel" ten-cent cigars, without any great promo- tional effort on the part of the company, are selling well. These divisions, wiiile not important factors in Lorillard 's total earnings, are each returning a profit to the company. TRADE NOTES Fred Suss, of S. H. Furgatch, was a visitor last week, calling on the trade in the interest of the new size of the "Langsdorf" brand, "Longboys." Yahn & McDonnell are distributing this brand with good success. "Chukkers," the new brand of Simpson, Studwell & Swick, recently taken on for distribution in this ter- ritory by John Wagner & Sons, is going over in a very satisfactory way for a twenty-five-cent cigarette. Re- peat orders are being received in good volume. M. J. Bacik, of the John H. Swisher Company, Jacksonville, Fla., was in town last week working 01 "Florida Kings," one of the Swisher Company's pop- ular brands. Yahn & McDonnell, 617 Chestnut Street, are local distributors for the Swisher products, and they report a good demand. A. Novotny, of Novotny's Smoke Shop, New York City, was a visitor at John Wagner & Sons last week in the interest of his "Philosopher" smoking tobacco. John Wagner & Sons are United States distributors for this high-grade smoking mixture and are steadily increasing their sales of this brand. 16 52nd year THE TOBACCO WORLD May 15, 1932 RETAIL STORE PROBLEMS (Continued from page 14) said to be a distinct problem and one that must be taken into consideration when deciding to locate in a given town. Personnel The facts regarding the supply of necessary per- sonnel for a store organization are pertinent. If a department-store owner, for instance, is contemplating the opening of a new store in a city, it would certainly be well to make sure that there is a supply of desirable people available for a sales force. The supply might be considered from the point of qualifications and adapt- ability. The standard of living in relation to the personnel is another important feature in the problem of store location, as is also the average price of the principal items in living costs. In connection with the latter, the percentage of employees of similar establishments liv- ing at home, as compared with the percentage of those rooming and ])oarding, plays an important part. It has been found that there is a decided difference in the cus- tomary wages of employees living at home and of those rooming and boarding. The turnover of personnel in similar stores in the same city may be indicative of the condition of the retail labor situation in the new location. Banking and Finance To the merchant locating in a new community abil- ity to secure proper and adequate banking facilities is of importance, particularly during the initial stages when the establishment of the business involves a large outlay for stock, fixtures, help, equipment, etc. As a general rule, in any city where a fairly large retail store might locate, such facilities would* ordinarily be ample, and the question would resolve itself into a choice as to which institution offered the best facilities. In the smaller towns, however, the field is generally limited to one or two institutions, and in such cases it is advisable to know the attitude of the banks toward new venkires and their willingness and ability to extend accommodations. Other merchants in the tWn might be consulted to determine to what extent the banks co- operate with the local merchants, especially in times of depression or when seasonal effects temporarily retard sales. Go re ru m ent Begidations The effect of governmental regulations varies, and a careful distinction must be made between those which might have a material effect upon the business itself and those which have a material effect on the handling of the business. Most of the existing Federal regulations have to do more particularly with the management, and are practically limited to the accounting reports which must be made periodically for the purpose of taxation. There may be, however. State and municipal regu- lations which will not only have an effect upon the busi- ness welfare but which also bear upon the welfare of those directly connected with it. Examples in this re- spect are; (1) The itinerant-vendor statute, which has been pressed for enactment before several of our State legislatures (it might be suggested that itinerant vend- ing, and its effect upon retail-store business in a given community, commands some attention in connection with store location in that community) ; (2) limitation of hours of labor, especially for women; (3) the mini- mum wage law or regulation, which has been passed by many State legislatures. These serve as examples of statutes pressed for the improvement of working con- ditions within a store. Right or wrong, they deserve consideration in that they effect sales costs. There are, of course, other municipal regulations such as parking restrictions, zoning laws, one-way streets, etc., which also have an effect upon the sales, but as these are considered more specifically in the question of a particular site location, little analvsis is necessary at this point. Site Factors Physical Location The choice of a site within the community is fre- quently just as important as the choice of the commu- nity. A factory can move without suffering a tremen- dous sales loss, but not so with a retail store. There- fore, a practical survey for location purposes will in- clude a study of present-day conditions and the possible economic changes of tomorrow. One of the outstanding examples of changing eco- nomic conditions is the shifting of population with a consequent moving of the retail center. There has been a definite shifting of business centers in most commu- nities, especially since the coming of the automobile. Not on the movement of business centers alone has the automobile had its effect, but it has also changed many residential districts. Moving the store in order to cope with these changes is attended with many difficulties which would have been rendered unnecessary through proper consideration, at the outset, of site location problems. The store that caters to a particular class of trade is often located at a point near this trade. This prox- imity to the consumer may be necessarv to secure the desired patronage. Hence, the shifting of this class of trade must be closely studied so that contact with the market will not be lost. After determining the approximate locality in which a site is desired, there are a number of factors influencing the choice of the particular street. The dis- tance of the street from the lines of communication is very important. Usually, in all but the larger cities, the main shopping street is the one traversed by street cars. Street-car lines may serve numerous types of communites. Therefore, some analysis of the traffic that the car lines carry may be profitable. Street cars coming from one district will bring a different class of trade from that brought by cars coming from another district. Then again, it may be desirable not to locate the store on a street with street cars. This might de- pend on the buying habits and the type of customers. Customers with automobiles may prefer to go to side streets, where there are no street cars, to avoid the traffic. The effect of bus lines is also worthy of consid- eration. The frequency of service and the fare of either the street cars or the bus lines will affect their importance with regard to street location. ^lany of the present retail districts originated be- fore automobiles were so numerous, and, therefore, niany of the streets are not wide enough to afford req- uisite parking facilities. Most cities have been com- pelled to make parking restrictions, and, no doubt, there will be many more made in the future. Some streets have been made one-way thoroughfares to facilitate the handling of traffic. Both of these facts have some bear- ing on the selection of the street best suited to store location. The effect of present and possible future restrictions upon the proposed business also merits due regard. In some businesses the need for space to park cars is not so imperative as in others, depending some- what on the length of time consumed in making pur- chases. Somewhat analogous to the restrictions mentioned are the zoning regulations that are made by cities. (Continued on page 17) May 15, 1932 Say Tou Saw It in The Tobacco World 52nd year 17 A CLEARING HOUSE FOR TECHNICAL TALENT [|HE Technical Service Committee has been formed at the Engineer's Club of Philadelphia. Its aims are to secure for the employer of technical men, the best the field has to offer mid to secure positions for these applicants. Confi- dential service is given without any cost to either party. The committee is fostered by the Engineer's Club and twelve affiliated technical societies. Its co-operation with the State Employment Commission helps assure its permanence. The committee's list of 600 engineers and technical men available is composed of members of nine branches of the profession, representing sixty-eight different oc- cupations. This group offers experience in 284 in- dustries. All of this list, with the exception of 2.6 per cent., are college trained, and 19 per cent, of the total number attended two or more colleges. If the result in placing of engineers through the efforts of this service is an indication of conditions, we are really approaching that corner around which prosperity is hiding. During the past week five ap- ])licants were placed, an increase over previous weeks. Thirty-two new names were enrolled, showing a de- crease. This represents a net placement of 15.6 per cent, for the week, against 3.7 per cent, for the two months the committee has been in operation under its present set-up. Total placements to date are twenty- two. These results, though not startling, are gratify- ing in view of the l)usiness depression just ending. If any one in the tobacco industry is in need of a technical man, he may be assured of securing the right man by writing the Technical Service Committee, at 1317 Spruce Street, Philadelphia, Pa. PHILIP MORRIS, LIMITED, REPORTS Philip Morris & Company, Limited, reports for year ended March 31st net income of $498,833 after charges and Federal taxes, largest earnings in the comi)any's history. This is equivalent to $1.20 a share on 415,465 siiaresof capital stock, including shares held by the company, and compares with $416,908, or $1 a share m the preceding fiscal year. CONGRESS CIGAR EARNINGS The (ingress Cigar Company reports for the March quarter net profit of $102,913 after taxes and charges. This is equivalent to thirty cents a share on ;'>36,800 shares, compared with $222,910, or sixty-three cents a share on 350,000 shares in the first quarter of 1931. RETAIL STORE PROBLEMS {Continued from page 16) These regulations probably pertain more to manufac- turing industries than to the retail trade. Some of the zones are, however, restricted to residential properties and do not allow merchants to enter. Some streets offer better advertising advantages than others. This is true not only because there is a greater numl)er of passers-by, but also because some streets may be easier to find than others. The impor- tance of the latter factor would, of course, depend upon the proportion of the trade drawn from the surround- ing territory. Often the farmers and other visitors will know only a few streets in a city; hence the advertising may become more effective when the visiting customer is already familiar with the location. (To be continued) s iLaOIOI«^VJllL2JI>^*|tl2J|ii^i|iy}^^^ Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. fiaat^t^t^tyS?ii>S?itysers, but he has not the legal right, by exacted promises or by co-operative or coercive methods, to restrain his customers from making resales outside of allotted ter- ritory. "The principle is the same in division of sales ter- ritory arrangements as in direct resale price main- tenance," the Commissioner asserted, "for the former completely eliminates price competition — and, even though there would otherwise remain a degree of com- petition betw-een dealers w^ho sell respondent's line of cigars and dealers in other lines of cigars, the restraint is unlawful. The popularity of respondent's line would render the competition substantial, if unrestrained. "There is no need to discuss the degree of sup- pressed competition involved in the present case, for all competition in the resale of respondent's line of cigars is eliminated by the regional restriction. Nor is it important that there still remains an opportunity for competition between retail dealers. They all buy from the same source and at the same price. "The regional distributor fixes his own price at will and the absence of competition necessarily afTects the price at which the retailer purchases his supply. And if it be discovered that the distributor, without competition, fixes a reasonable price, that fact would be still less important, for if the distributor may fix a reasonable price, it is within his power to fix an exor- bitant one. "While respondent has the legal right to restrict the sales territory of its seventeen branch sales depart- ments, that feature of its plan cannot escape attention as the completion of a system which operates as a total exclusion of all competition in the distribution of its products." Chain Store Tax Suggested for District of Columbia Heavy taxes on chain stores in the District of Columbia, ranging as high as $1000 per unit, which would hit a full half dozen organizations selling tobacco products, are proposed by Representative Celler of New York, in legislation just introduced in Congress intended as a model bill for adoption by the States. Under the Celler bill, every retail store in the Dis- trict would pay a license fee of $5 if individually owned, From oup M^ashington Bureau 62ZAlbee Building while chain stores would be taxed at the rate of $5 mul- tiplied by the number of units operated by the organiza- tion in the District. Thus the fee for two stores would be $10 per store, for five stores $25 per store, and for 200 stores or more $1000 per store, the maximum fee. One organization operating in Washington, it is under- stood, would be liable for the maximum tax. Pointing out that progressive or graduated taxes for chain stores have lieen held constitutional by the LTnited States Supreme Court in the so-called Indiana chain store tax case, Mr. Celler asserted that "recent studies clearly indicate that chain stores do not sell more cheaply than efficient independent retail mer- chants, although the chain store associations are en- deavoring to deceive the public into a contrary belief. "It is hoped that passage by Congress of such an act will blaze the trail for action l)y most of the States. Several States have already passed such laws. Some eighty similar bills are pending in the various State legislatures. "Independent merchants," the Congressman de- clared, "will become as extinct as the dodo unless they are placed upon some parity with the chains. In many large cities there are no more retail cigar stores and few independent retail grocers. They cannot compete against the expert and mass purchasing, skilled man- agement and tremendous advertising power of the chains. They have no chance for their 'white alley' unless the strong arm of the Government's taxing power comes to their aid. The tremendous growth of the chains must be scotched. "Chains undoubtedly satisfy an economic neces- sity. But they must not grow at the expense of the fearless, independent, worthwiiile citizen struggling to operate his retail store and striving to maintain his familv and educate his children." President Defends Protective Tariff Refusing to accept legislation -which he declared would utterly destroy the effectiveness of the flexible provisions of the tariff law^. President Hoover last month vetoed the Democratic tariff bill under which all recommendations of the Tariff Commission as to changes in rates of duty w^ould be submitted direct to Congress for action instead of to the President. As expected, the Democrats could not muster the necessary two-thirds vote to pass the bill over the veto, and the measure was killed on a vote in the House ot' Representatives. The flexible tariff, the President told the House in his veto message, "gives protection against excessive or inadequate tariffs, prevents a system of frozen tar- iffs upon the country irrespective of economic change, and gives relief from log-rolling and politics in tariff- making. (Continued on Page 16) GOLDEN GRAIN THE BURLEY BLEND GRANULATED TOBACCO FULL OUNCE IT'S a blended granulated cigarette tobacco, and that's just what smokers want these days. Golden Grain is the answer to thousands of cigarette smokers who wanted a new and more distinctive taste in roll -your -own tobacco. They were tired of the old-fashioned kind. It's a big step forward. Another feature of Golden Grain is the gummed papers that come FREE with every package. Think of it — for 50 a smoker gets 1 full ounce of blended tobacco with 2 books of gummed papers. Golden Grain is the only blended granulated tobacco with gummed papers free. You, Mr. Dealer, know the great demand nowadays for a 50 roll-your-own tobacco. If you haven't Golden Grain already in stock, your jobber will supply you. ■MOWN A WILLIAMSON TOIACCO CORP., LOUISVILLE, KY. 10 52nd year THE TOBACCO WORLD June 1, 1932 TOBACCO TAX SURVEY SUBMITTED TO NEW JERSEY LEGISLATIVE COMMITTEE STANLEY BLEAKLY, member of the New Jersey State Legislature from Camden County, has submitted a report to the Repub- lican conference committee of the Legislature, following a three months' survey of tax measures in other States. In listing his information he shows that a tobacco and general sales tax is in force in Alabama, Arkansas, Georgia, Iowa, Kansas, North Dakota, Ohio, Tennessee, Mississippi, South Carolina, South Dakota, Texas and Utah. All of these States have less i)opulation and lower metropolitan density than New Jersey Bleakly pointed out. He believes that a tax on tobacco alone would realize $250,000 a month for New Jersey. In submitting the report, ^Ir. Bleakly states: *' Submission of this data is no indication that I favor this tax. I feel that every possible means should be taken to curtail expenses before any additional taxes are levied. If this curtailment is impossible, I think a general sales tax is probably more equitable than any proposal yet made. ' ' ART HELPS INDUSTRY, SAY EXPERTS Good art in advertising and good business go hand- in-hand, contrary to the general belief. Art authori- ties, whose views were made public today, hold this view. A survey was made on the occasion of the pub- lication of the drawings of John La Gatta, the distin- guished artist, in the advertisements of one of Amer- ica's largest and most dynamic newspaper advertisers, the American Tobacco Company, featuring "Lucky Strike" cigarettes. Art experts, commercial and non-commercial, agree with art and business educators that this trend on the part of large advertisers will help develop the artistic standards of the American peoy)le. The tremendous force that advertising, reaching millions daily, exerts in present-day America which heretofore has been applied only to sell goods, will be a sig^iificant factor in the growth of aesthetic appre- ciation, these experts believe, as advertisers increas- inglv continue to utilize onlv the best artists. Ellis Parker Butler, well-known author, sums up the role industry plays in art in one succinct sentence. **Tn a country where nation, state and municipality give so little recognition to art," he writes, *'it is especially satisfactorv that business should do so." Artistic Taste Developed ** There can be no question that the tendency which has developed among the front rank advertisers in the last few years to use only the highest standard of art in illustrating their advertisements has done much to develop the artistic taste of the American publie," says Ray Long, formerly editor of the CosmopoUtan Maga- zine and now with Richard R. Smith in the pu])lishing business. Mr. Long believes that advertisements in newspapers, magazines and billboards "are as tine ex- amples of the illustrator's art as mav be found anv- w^here." He further expresses the sentiment that it is impossible to overestimate the value of the great work the American advertiser is doing in developing artists. APRIL 1, 1932, CIGAR LEAF STOCKS TOCKS of American-grown cigar filler types including Porto Rican amounted to 198,504,000 pounds on April 1, 1932, compared with 164,. 931,000 pounds on April 1, 1931, and 143,394,- 000 pounds on hand January 1, 1932. This shows an increase of about thirty-three and a half million pounds over the holdings of the previous year. The increase is in Pennsylvania Filler, Type 41, and Dutch, Type 44. Types 42, 43, 45 and 4G show a decrease. The bulk of the stocks of the filler types are reported in the C group. About 22 per cent, of the total stocks of filler type tobacco is reported in tho X group. Of the total of 115,064,000 pounds of Type 41 tobacco reported, 1,332,000 pounds are reported as Binder or Tops, 84,- 040,000 pounds as Fillers and 29,457,000 pounds as Stemming. The cigar binder types show an increase in stocks (m April 1st, of about twenty-three million pounds over the stocks of a year ago April 1st. The total stocks of binder tvpes were reported as 197,399,000 pounds on April 1,' 1932, and 174,007,000 pounds on April 1, 1931. Binder stocks increased during the first quarter of 1932 about thirty-five million pounds compared with an increase of about forty-two million pounds during the first quarter of 1931. The detailed report shows that of the total stocks reported 4,306,000 pounds are of wrapper qualitv, 80,510,000 pounds are Binders, 10,338,000 pounds are Fillers, and 102,646,000 pounds are Stemming or X group tobacco. In Types 51 and 52 about 73 per cent, of the stocks are reported as Binders and about 24 per cent, as Stemming. In Type 53 the bulk of the stocks is reported in the X group. In Type 54 about 14 per cent, of the total stocks are reported as Binders and about 80 per cent, as Stem- ming. In Type 55 al)out 40 per cent, is reported as Binders, and about 52 per cent, as Stemming. Shade-grown wrapper stocks of Connecticut, Georgia and Florida, Types 61 and 62 were 665,000 pounds higher on April 1, 1932, than they were on April 1, 1931. Total shade stocks were reported as 15,911,- 000 pounds. Of this total 10,845,000 pounds were re- ported in the A group as Wrappers, 4,179,000 pounds in the B group as Binders, and the balance in the C, X and S groups. Foreign-grown cigar leaf stocks wer«' about the same, and foreign-grown other than cigar leaf about one million pounds lower than they were a year ago April 1st. TOBACCO WITHOUT NICOTINE Tobacco minus nicotine is produced from the leaves of a remarka])le plant raised in Germany. This botanical freak is the reward of experiments conducted niuler the direction of the Ministry of National Eco- nomics at a research institute established in the midst of the tobacco-growing fields of Pfalz. Although an extract from the leaves is virtuallv as harmless as drinking water, the *' smokes made from the plant are said to have much the flavor of ordinary tobacco. UNITED PROFITS DOWN George Wattley, treasurer of the United Cigar Stores Company of America, told stockholders at the annual meeting on Wednesday that profits of the com- pany so far this year are not as good as last year. He estimated the company would save $670,000 annually from salary reductions put into effect on March 1. June 1, 1932 Say You Saw It in The Tobacco World 52nd year 11 TECHNICAL PLACEMENT SERVICE TO IN- CREASE CONSUMERS' BUYING POWER X WASHIXGTOX, while speaking of the pres- ent crisis, an important senatorial voice pro- claims: *'The indispensable measures are a balanced budget and methods to get actual buy- ing power into the hands of the consumer." Right ! In order to increase national buying power work must be found for those consumers who are with- out income at the present time. Individual efforts to secure employment have failed in many cases while con- centrated contacting of industrial employers has met with much greater success. For such concentration of efforts the Philadelphia Technical Service Committee was established as a per- manent technical placement bureau, which charges no fees for its services. The committee is sponsored by the Engineers' Club of Philadelphia, the local sections of fourteen National Engineering Societies and the State Employ- ment Commission and is located at 1317 Spruce Street, Philadelphia. It registers engineers of all branches and at present has on its list of available applicants over fiOO engineers and technical men. This list represents the finest selection of technical talent which can be found anywhere. Those executives and employers of technical men who have not been con- tacted in person as yet, but who wish to fill a vacancy in their staff, are invited to communicate with the com- mittee. They are assured of contidential, prompt and careful attention to their specifications. KREUGER & TOLL FILE PETITION Kreuger & Toll and two affiliated companies filed bankruptcy petitions in Stockholm on Tuesday of last week, and the petitions were granted by the court im- mediately. Eric Sjoestroem, one of Ihe closest friends of the late Ivar Kreuger, was arrested on his sick-bed a few hours after the petitions were granted. He is a direc- tor of Kreuger & Toll and was placed under guard and will be taken to jail when his health improves. Police also detained for questioning Major Nils Ahlstroem, another close friend and associate of the late Kreuger. Action was also taken by the protective committee in this country, headed by Bainbridge Colby, former Secretary of State, to have ancillary receivers ap- pointed iiere for the Kreuger & Toll Company. The collateral for Kreuger & Toll debenture 5s is held in this country by the Lee, Higginson Trust Company, of Boston. The present market value of the collateral bonds is estimated at a very low figure, with the real market \ alue unknown because most of the issues have no listed market. The bonds constitute assets which could be taken over by an ancillary receiver in this country. Francis C. Gray, president of the Lee, Higginson Trust Company of Boston, announced on Wednesday the discontinuance of the company's activities. He said the company had cash on liand to cover the full amonnt of deposits and that depositors would be paid off at once. The trust company is independent of the investment and banking firm of Lee, Higginson & (Com- pany, which issued a statement to the effect that its investment banking activities would continue as usual. WHAT DOES "D. B. I." MEAN? HOSE initials, D. B. L, which stand after the name of Phil ^[. Phulofax, well-known cigar retailing expert, have long whetted the curios- it v of our editors, who final! v decided to find • 7 a. out what they stood for. Therefore, our correspondent set out bright and early for the offices of Bayuk Cigars, Incorporated, fired with a determination to discover the meaning of those cryptic letters. *' There is a real mejining, of course, but they don't refer to 'Darned Big Individual' or 'Distinguished Business Indicator,' " replied D. B. I., who was found dictating final instructions preparatory to setting out on his annual coast-to-coast tour. "Those expressions, I am afraid, were invented by my flattering ])ublic, and much as I appreciate them, I must decline the honor. Furthermore, 'Don't Believe Initials.' "Here are just a few interesting guesses at their real meaning: Don't Be Ignorant, Don't Be Impatient, Don't Be Idle. "And unless I seem to be dealing exclusively in 'don'ts,' here are some which you can add to the other side of the ledger: Do Be Industrious, Do Be Interested, Do Be Inventive, Do Be Individual." Here are a few more D. B. I.'s which came out in the course of the conversation: Dollar Building Ideas, Dollar Building Instructor, Defender of Better Incomes, Dollars By Initiative. "Personally," continued Phulofax, "I prefer 'De- partment of Business Ideas,' because that's what I aim to be. Incidentally, such a department should be a clearing house for the results of all the sound head work that is being done in the retail cigar business, and I am anxious to gather in all the canny selling tips which you, and you, and you have worked out and whicli I would like to pass on to your brothers in cigardom. So send 'em in. "Then there's 'Dollars By Industry,' which is one of my favorites and one which could go after all our names to advantage. Dollars don't grow on bushes or spring up like weeds in the kitchen garden. They re- quire serious cultivation — good ploughing, careful planting and back-breaking attention. "There's just one more meaning which I want to leave with you," concluded D. B. I., as he snapped his brief case and moved toward the door, "and that is the one with which I usually answer such inquiries as you have made. It is: 'Don't Be Inquisitive.' " For the benefit of our readers we report these many possible interpretations of the letters, "D. B. I." But what is their real meaning? LIGGETT & MYERS DIVIDEND Directors of the Liggett & Myers Tobacco Com- pany have declared the regular quarterly dividend of ^1.75 on the preferred stock of the company, payable 'July 1 to stockholders of record June 10. NEW DIRECTORS FOR VADSCO Emanuel Katz, Edmond J. Leger, Sidney J. Loev, Daniel P. Seibert, Lonis J. Pelikan, Charles M. Pritz- ker and Oscar V. Sisson were elected directors of the Vadsco Sales Corporation last week, increasing th<; board to fifteen meml)ers. Stockholders have recommended that Monroe W. Rothschild, vice-president of the company, be elected president of the company at the organization meeting of the board. The company is controlled by the Schulte interests. 12 52nd year THE TOBACCO WORLD June 1, 1932 RETAIL STORE PROBLEMS So many persons are imaivare of the many aids to business which have been carefully prepared by the United States Government, and so many of those who are aware of these facilities fail to take advantage of them, that we are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) RETAIL STORE LOCATION (Continued from previous Issue) One side of a street is usually moie popular than the other. There may be several reasons for this. If the street is not level, the upper side is usually more traveled than the lower. This may be accounted for by the fact that the upper side of the street is cleaner, or that "the human tendency is to get on the upper side of things." Then, again, there is the question of the shady or sunny side of the street. In the summer the preference for the shady side becomes quite marked, and this is especially true for women, who do much of their shopping in the hottest part of the day. Sunlight is always an important factor to be considered in locat- ing a retail store. Shoppers naturally seek the protec- tion of the shadv side of the street in the summer, and the sunlight affects the displays that the store makes in its w^indows. Satisfactory displays are more diffi- cult to make in sunny windows than in those of which the light is controlled or shaded; a bright glare from the outside tends to make a mirror of the plate- glass windows, preventing the best appearance of any display. Then, too, the sun's rays will spoil some tvpes of goods, especially the delicate fabrics displayed in the windows of stores catering to the trade of women. It is possible, however, that for certain reasons the sunny side of a street may be preferred. An analysis of sales may show that the largest business is done in the winter month, during which time the traffic may pre- fer the sunny side. The rent is usually cheaper on the sunny side. Another factor in determining the prefer- able side of the street is the convenience to the street- car stops. When the car stops people usually go to the nearest curb, rather than cross the street. The distance of a location from a prominent transfer point is a very important factor. Customers transferring to other ])arts of the city may take time to make a purchase, but in order to do so they would prefer not to get off the car any considerable distance from their transfer point. Nature of the Surroundings The number of people traveling upon one side of the street may be influenced by the general condition of the surroundings. If one side has a number of old, tumble-down structures, empty buildings, billboards, or other unattractive features, people will undoubtedly take the other side of the street if it appears more attractive. A natural tendency is to avoid smoke, noise, bad odors, or dust, and if one side of the street is more pleasant in any of these particulars than the other, it will be preferred by pedestrians. The stores that have already located in good places draw larger and larger crowds. Consequently, places near old, success- ful stores may be of great value. Most merchants ob- ject to having a vacant storeroom adjoining them, as it gives the appearance that business is not flourishing in that neighborhood. The past record of a building for stores sometimes influences its value for a going concern. Some stores go well in groups. One reason for this grouping is the convenience of the customer, as it affords opportunity for the Durchasing of a number of different kinds of articles in one vicinity. Another advantage of locating competing stores close together is the possibility of drawing trade from customers who had planned to go directly to a competitor. The stores thus established are not always competing stores. Very frequently they arrange themselves into complemen- tary groups co-operating with each other in the attrac- tion of custom and in the making of sales. Stores deal- ing in men's goods are often found on one side of the street, while stores dealing in women's goods are found on the other. Analysis of the Traffic "The most essential element of a good store loca- tion is the opportunity it offers to sell goods where people naturally come to trade, either because of con- venience or because of habit." This factor is recog- nized by the majority of merchants, and its comparative effect is usually determined by an actual count of the passers-by. Other things being equal, the location passed by the greatest number of people is the most valuable for retail store purposes. But other things are not equal, and for this reason some analysis of the passing traffic with regard to the types of goods pur- veyed is essential. The actual volume of traffic may be analyzed by the hours of the day.^ Large crowds of working people hurrying to and from factories at times of opening and closing are not good customers for some types of goods. The hours at which traffic is heaviest are important as indicating the purpose on which it is bent. On certain days of the week the traffic is heavier than on others, notably, of course, on Saturday. Again the passers-by may be classified according to sex, women being more important to department stores and men to cigar stores. But probably still more important is the classification of traffic as shoppers, commuters, la])orers, amusement crowds, etc. The number of peo- ple who come out to shop and to buy is the real factor of importance in the total that pass a location. The count of traffic may be of particular usefulness in mak- ing a choice between two sites, when the passers-by are known to be of the same general type. Such a count should, however, be made under similar conditions, that is, as to hours of the day and the day of the week. Much of the value of the corner location is derived from the increased number of passers-by. Such a location is accessible to the traffic of two streets. The same rea- soning located the country general merchandise store at the crossroad. Another valuable feature of the cor- ner store is the increase in window space, with a conse- quent appreciation in value as an advertising medium. ^ See Section on Vehicular Traffic Congestion and Retail Business. (Continued on Page 14) .June 1, 1932 Say You Saw It in The Tobacco World 52nd vear 13 S.I said FRAGRANT MODEL SMOKING TOBACCO TOBACCO STOCKS APRIL 1, 1932 TOCKS of leaf tobacco in the United States owned by dealers and manufacturers amounted to 2,373,761,000 pounds on April 1, 1932, com- pared with 2,150,778,000 pounds on April 1, 11)31, according to a report released today by the To- bacco Section, Bureau of Agricultural Economics, U. S. Department of Agriculture. Total stocks show an in- crease of 360,981,000 pounds during the first quarter of 1932, compared with an increase of 297,302,000 pounds during the first quarter of 1931. Stocks of Hue-cured tobacco on hand April 1, 1932, were 845,642,000 pounds, compared with 831,347,000 pounds on April 1, 1931. Flue-cured stocks were 14,- 2I>5,000 pounds liigher than they were a year ago on April 1. They decreased 47,456,000 pounds during the first quarter of 1932, whereas the decrease during the same period of 1931 amounted to only 37,636,000 pounds. Stocks of Type 11 were slightly higher on April 1 tlian they were a year ago, and stocks of Types 12, 13 and 14 were lower. The detailed report liy groups of grades shows about the same proportion ot* tobacco in all groups of the fiue-cured types as on Jaiiuarv 1, 1932, with the exception of the A group of 1\vpe 12. Stocks of fire-cured tobacco reported as 201,424,000 pounds on April 1, 1932, were about fifty-six million pounds higher than on January 1, 1932, and about the same as stocks a year ago on April 1st. Virginia Fire- cured, Type 21, reported as 40,711,000 pounds shows an increase of a little more than ten million pounds over January 1st stocks and about two million pounds higher than on April 1, 1931. Kentucky and Tennessee Fire- eured. Types 22 and 23, combined show a total of 155,- 479,000 pounds compared with 111,856,000 pounds on January 1st and 154,404,000 pounds on April 1, 1931. The report by groups of grades shows about the same proportion of tobacco in the various groups of all types of fire-cured tobacco as on January 1, 1932. Burley stocks were about 135 million pounds higher on April 1st, than they were a year ago. The April 1, 1932, report shows 702,834,000' pounds on hand com- pared with 568,010,000 pounds on hand April 1, 1931. During the first quarter of 1932 Burley stocks increased 212,220,000 pounds compared with an increase of 160,453,000 pounds during the same period of 1931. This increase may be accounted for by increased pro- duction in 1931 and by an apparent decline in the rate of consumption. More than half of the Burley stocks are reported in the B group. Maryland tobacco stocks were about one million pounds higher on April 1, 1932, than they w^ere on TOBACCO TRADE ORGANIZATIONS TOBACX'O MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH, Wheeling, W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Pretident JULIUS LICHTENSTEIN, New York, N. Y Vice-President WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL, New York, N. Y Vice-President H. H. SHELTON, Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND. New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. \ND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN, New York, N. Y First Vice-President IKVE.^f M. .MOSS, Trenton. .\'. J Second Vice-President ABE BROWN, 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President April 1, 1931, and about live million pounds lower than on January 1st. The detailed report by groups of grades shows a decrease in stocks in the B group of grades of nearly three million pounds. This group in- cludes the inferior ({uality Dull Crop tobacco which normally is exported. ( )ne-sut'ker stocks on April 1, 1932, are reported as 49,024,000 pounds, comi)arc(l with 48,357,000 i)()un(ls on April 1, 1931, and 31,080,000 pounds on January 1, 1932. Green Kiver stocks reported as 38,957,000 pounds on April 1st, are considerably higher than a year ago. Virginia Sun-cured stocks amounted to 4,()35,000 pounds on April 1, 1932, about (;4,000 i)ouih1s less than a year ago. 14 52nd year THE TOBACCO WORLD June 1, 1932 RETAIL STORE PROBLEMS (Continued from Page 12) Store Building and Construction One difference between a good and a poor location is the fact that in a poor location the limit of the market is more easily reached and therefore it does not adapt itself to an intensive use. One of the first steps in putting a good location to intensive use is the erection of a suitable building. Owing to the fars who attended the Indianapolis and New York meetings are invited to Cleveland, and in addition numerous others who were unable to be present at either of these meetings but who have ex- pressed themselves as favoring the idea of organization will also be asked to attend. At the coming ( leveland meeting the permanent set of officers and an executive committee wnll be elected, and constitution and by-laws will be formally approved after some slight revisions; the matter of dues will be decided (also whether a paid executive secretary should l>e employed), and the necessary committees will be ap- ])ointed to proceed with the work projected by the asso- ciation. Those present at the Saturday afternoon confer- ence w'ere: Max Packer, Packer Bros., New^ York ; James Mar- tin James Martin, Inc., Peekskill, N. Y.; I. Rosenblatt, N Tarrvtown, N. Y.; Harrv Rice, N. Rice (^igar Co., Pittsburgh, Pa.; X. Leventhal, (V^itral Tobacco & Candv (V)., Trcinton, N. J.; W. H. Taylor, A. Mc(Uie, Inc Paterson, N. J.; Fred Ackel, Foster & Gregory, (Jloversville, X. Y.; Ilvman Goldman, Standard Cigar & Tobacco (%)., Washington, I). (\; (George Frings, Frings Bros. Co., Philadelphia, Pa.; Harry Kirtz, {Contifmed on Page 17) Trade Notes Mr. Place, of the 0-Nic-O factory. New Y^ork City, was among the out-of-tow^n visitors here this week. F. W. Sommerfeld, of the F. W. Sommerfeld Cigar Company, was a visitor at John Wagner & Sons head- quarters last week. The Wagner house is local distrib- utor for the Sommerfeld brands. Paul Brogan, vice-president of Yahn & McDonnell Cigars, has been appointed received for E. Cohen »fc Son, wholesale tobacconists, of 512 South Second Street, with bond at $10,000. George Stocking, representing Arango y Arango, Tampa manufacturers of the *'Don Sebastian" brand, was in town on Tuesday visiting the local distributor of their brand, John Wagner & Sons. The ' ' Don Sebas- tian" brand enjoys a splendid demand in Philadelphia. Grabosky Brothers, North Second Street manufac- turers of the "Royalist" cigar, are running their fac- tory steadily, with a good volume of orders coming in regularly. The new^ ten-cent blunt size is proving a popular addition to the line, and sales are gaining. Ben Lumley, representing the F. W. Sommerfeld Cigar Company, Miami, Fla., manufacturers of the *'Dulce" and *' Verdi" cigars, has just returned from a trip through his Baltimore and Washington territory and reports a most successful trip. The '*Dulce" and *' Verdi" brands are enjoying a splendid demand in that territory. Frank Swick, of Simpson, Studwell & Swick, Now York City, manufacturers of the **Chukkers" brand of cigarettes, was in town this we^k visiting John Wagner & Sons, local distributor of the brand. The ^'Chuk kers" brand is a comparatively newcomer in this mar- ket and is enjoying a wonderful sale among the higli- grade cigarettes here. Barton Lemlein and Joe Banker, of M. Sachs f- Companv, New York Citv, manufacturers of the pri vale brand ''Wagner," for Jolin Wagner & Sons, were in town last week. The *' Wagner" brand has a steady call among the high-grade club and hotel stands here and has recently been augmented by a new ten-cent si/.*' which is proving popular. John Wagner & Sons have received a letter from J. L McGuertv, ''Romeo v Julieta" representative for the United States, that the "Romeo y Julieta" factory in Cuba has resumed operations, following a shutdowji of several months on account of a strike of the factory workers. They have also been advised that the "Parta- gas" and "Belinda" factories in Cuba have also re sumed operations, thus assuring an ample supply (»» these brands for the future. Jnlv 1, 1932 Say You Saw It in The Tobacco World 52nd year NEVER PARCHED OR TOASTED §iiviteh to Camels then leave them— if you can IF YOU want to know the difference be- tween a truly fresh cigarette and one that is parched or toasted, light a Camel. As you draw in that cool, fragrant smoke notice how smooth and friendly it is to your throat. Not a hint of sting or bite. Not a trace of burn. That is because Camels are blended from' choice Turkish and mild, sun -ripened Domestic tobaccos, and are made with just the right amount of natural mois- ture and kept that way until delivered to R. J. REYNOLDS TOBACCO the smoker by the Camel Humidor Pack. Camels are never parched or toasted. That's why Camels bring you so much unalloyed enjoyment. That's why they are so much milder; why they leave no dgaretty after-taste. If you haven't tried Camels lately, get a package today and see for yourself what you are missing. Switch over to Camels. Then leave them — if you can. COMPANY, Winston-Salem, N. C. e 1913, R. J , Reynold* Tobacco Company Camels Made FRESH-JT^p^ FRE^H I Don't rtmovt the Camel Humidor Pack — // is protection against per- fume and pou dtr odors, dust and germs. Buy Camels by the carton for home or office. The Humidor Pack keeps Camels fresh 8 52nd year THE TOBACCO WORLD July 1, 1932 July 1, 1932 THE TOBACCO WORLD 52nd year 9 From Congress D R A L Departments NCLUSION in both Republican and Democratic platforms of a plank calling for the mainte- nance and vigorous enforcement of existing antitrust laws was strongly urged by econo- mists in thirty-four educational institutionals in twenty States in letters sent to the resolutions committees of the two parties just prior to the national conventions. Rejecting the claim that the antitrust law^s are the cause of wasteful overproduction, the economists pointed to the monopolistic control of commodity prices which fostered speculation in the security markets and called upon the framers of the party platforms to re- affirm the principle of competition in all lines of busi- ness in which there is not ellective price control by pub- licly appointed commissions. "The weakening of the Sherman Antitrust Act would involve consequences of a radical nature, incon- sistent with the very principles of private industry," it was asserted. "The widening and extension of the realm of pu])lic price-fixing in industry and commerce resulting from such action must im})ose an impossible burden upon governmental agencies of control and ir- reparable injury to the political and social, as well as economic, interests of the whole people. "The most competent economic opinion, as well in Europe as in this country," it was declared, "can be cited in su])port of the view that a strong contributing cause of the unparalleled severity of the present de- pression was the greatly increased extent of mono]>o- listic control of commodity prices which stimulated financial speculation in the security markets. There is growing doubt whether the capitalistic system, whose basic assumption is free markets and a free price sys- tem, can continue to work with an ever-widening rang*^ of prices fixed or manipulated by monopolies." Downward revision of the Smoot-IIawlev tariff will Ix' undertaken bv the Democrats as soon as thev come into power, if they are successful in carrying the country in the November elections. Tariff legislation was promised by Senator Alben W. Barkley of Kentucky in his "keynote" speech as temporary chairman of the Deniociatic National Con- vention, following a ])itter indictment of the present law. "We propose to reduce the exorbitant and indefen- sible rates of the Smoot-Hawlev, Hoover-Cirundv Tar- iff Act," the Senator announced. "We propose to inaugurate friendly international trade conferences with a view to the reopening of normal trade channels throughout the world. "By this we do not mean to ignore the legitimate claims of American business," he explained. "We mean to promote them. The Democratic party does not advocate aiul has never advocated the policy of free From our Washington Bureau 622Albee Building trade. But we do object to the use of the power of tax- ation by small groups to stimulate their particular in- terests with an artificial invigoration at the expense and to the damage of the whole people. "The normal prosperity of the American peopk* depends upon their ability to sell in the markets of the world an average of 10 per cent, of their domestic prod nets," Senator Barkley declared. "This includes agri- culture as well as industry. If these markets are de- stroyed then our unsalable surplus must be thrown upon the domestic market and disorganize domestic })rices still further, or we must cease its production and add still greater numbers to the army of the unem- ployed. ' ' Additional tax legislation when Congress meets for the short session next Deceml)er alreadv seems to be a foregone conclusion, and indications are that a general manufacturers' sales tax will be adopted of consider ably heavier proportions than that considered during enactment of the tax bill which has just come into effect. While a large proportion of members of Congress have been consistently against anything savoring of a general sales tax, they are rapidly finding it impossible to escape the conclusion that only through such a tax will the Treasurv be able to collect enough monev to come anywhere near balancing the budget. For months, everv time the Treasurv has issued a report on its receipts and estimates of future revenue, the figures have shown a greater need for new money, and it is freely predicted in Washington that the admin- istration eventually will have to abandon its hope of balancing the budget and meet its needs for money from time to time by borrowing. Three factors will control the action of Congress next session with respect to taxes: Whether the war debtors are going to pay what is then due the United States; how much revenue will have been collected un- der the new tax law; and how the Government econo- mies are working out. If, as is now feared possible, these three factors are unfavora])le, it is likely that Congress will not attempt to repeat its experiment of seeking sources of income to avoid a general sales tax but will enact the latter without hesitation. Increased charges for insured and collect-on- delivery parcels asked by the Post Office Department are provided in legislation adoj)ted by Congress June 24, from which additional revenues of $2,50(),()()0 a year are anticipated. The measure provides for graduated increases in all but the minimum rates now charged for insured par- cels, and adds a 30-cent rate for insurance up to $ir)n and 35 cents for insurance up to $2(K). The present (Continued on Page 16) T\ PHIL M. PHULOFAX SIZES UP CIGAR MERCHANTS HE FOLLOWING communication was received this morning in the offices of this publication. Its author, Phil M. Phulofax, D. B. I., who is associated with Bayuk Cigars, Incorporated, of Philadelphia, has just set out on his annual tour of the country to observe conditions in the retail cigar world. Yourtown, U. S. A. — Hello, everybody in the busi- ness! This is my first stop on the famous trip you've all heard so much about, and it has proved to be an excellent object lesson which I am passing right along. Dropped off the limited earh this morning and took a stroll around the town before things began to move. It's a homey looking place — lots of comfortable houses with their own yards an.d bikes parked along the front porch, green trees overhead, and a business sec- lion that looks neat and up to date. While the pave- ments were being swept and the windows polished, I walked over to I. M. Alive 's store on the west side of the town. P^irst thing that im])ressed me was a smart ])oster in the window telling me something I might have forgotten — that June 19th is Father's Day. Time the old man got a break, thinks I, and a mighty good idea it is for a cigar dealer to remind the voung frv on their wav to an ice cream soda that Dad's a pretty good scout, and that what he would like above ahnost everything else is a box of his favorite cigars. It wasn't an elaborate window — just a sign, which Alive might have printed himself on a piece of card- board with some bright j)aint, and some open boxes of good cigars below it — ])ut it caught my eye and was catching others, too, according to the statements of 1. M., whom I found smiling over his counter, even at that early hour, and arranging some boxes on the top of the glass. "Just in case they forget between the door and the cash box," he remarked as he prop])e(l a neatly lettered, "Dad, His Day — June 19th," beside the cigar boxes. "Of course I tell Junior when he comes in that it won't make a bit of difference if sister gets Dad the same present, because a man can't have too many of his pet smokes. I know mv customers prettv well and am familiar with their likes and dislikes, but I've been keej)ing track lately and jotting it down on a pad here when I don't remember, so that when somebody wants to order a box for the head of the house, I 'm pretty sure of knowing what will please him." After this very pleasant call, I walked over to an- otlu'r shop a few blocks away — Y. Bother, l*rop. Y. was somewhere in the dim background, and it took three "Yankee Doodles," drummed on the counter with my knuckles, to bring him out. Finally he shuffled over, asked what I wanted, told me things were bad. "By the wav," I ])ut in, "do vou know that June 19th is Father's^Day?" Y. Bother said he thought it was around that time, but nobodv buvs gifts for such • K'casions anvwav. I staffed to sputter a reply, but sto])ped, realizing that 1 wasn't on a lecture tour but on an information irathering journey; and there was some real informa- tion about human nature and success in business in my morning's experience. I'll bet a box of cigars to a ticket to the AVorld's Series that it doesn't take a mas- ter mind to detect the moral of the storv. WAITT «& BOND OMITS ^^ aitt & Bond, Incorpoi'ated, manufacturei's of the " Blackstone" cigar, has omitted the (quarterly dividend of 20 cents on the Class B stock due at this time. JOB CONSULTATION— WHAT IT MEANS HE PHILADELPHIA Technical Service Com- mittee offers a new means of helping employers of technical men. This operates in conjunction with their free employment service, which acts as a dignified, confidential, non-fee-charging clearing house for engineering, architectural, chemical, and other technical talent. Often an executive has an exceptional problem re- quiring the assistance of a man of training and experi- ence along unusual lines. Whatever the requirement, the committee stands ready to assist you in preparing your job specifications. Upon calling their headquar- ters, 1317 Spruce Street, Philadelphia, Pa., trained specialists in technical placement will be ready to help you make the right selection. This is also without cost to either the employer or employee. The employment service places at your disposal nearly all of the available engineers in the Philadel])hia area. The enrollment, 850 men, representing training in 147 different colleges, and experience in ()8 different occupations in !284 industries. This committee was or- ganized by The Engineers' Club of Philadelphia. It is affiliated with the Philadelphia chaiiters of twelve national engineering societies. The otlice work and con- tacting are done by the unemi)loyed engineers them- selves. It is working in co-operation with the Penn- svlvania State Employment Commission. What are vour needs at iiresent .' Do vou need a purchasing agent '\ Do you need a designer or drafts- man? Or other technical men.' (Jo over your |)erson- nel list again and see if you can make room for a man or two. They will not be so plentiful a little later on. NEWS OF THE MANILA TRADE Reports from Isabela and Cagayan Provinces where the best cigar leaf is grown indicates a short crop this year due to lack of rain. Growers, however, expect a very good (luality of leaf. La Insular Cigar and Cigarette Factory is using the radio to advertise their *'01d l*residenfe" cigars. The program on this sponsorship is an electrical tran- scription and is called "Varieties." The program is l)Opular with radio fans in the Islands, David F*. Morris, Philip})ine tobacco agent, is call- ing on the wholesale and retail ti'ade in Southern Cali- fornia after competing a tour of the Southwest. Heavy trade gains have been made by the Manila cigar busi- ness during the uast six months in that territory. The sales of Manila londres in the United States from the first of the year have shown a very large in- crease. Several of tlie straight 5-cent Manila brands have also held u)) very well and the Manila trade prom- ises substantial increase for the year. Cable reports from Manila for the month of ^lay gave an inci'ease over two and one-half million comj)ared with May, l!>v>l. The local cigai'ette factories at Manila have lost considerable business dniing the past two or three years. C()nsum])tion of Manila cigari'ttes in the lslan(l> have fallen consideral)ly below five billion. Moi-e than a million American-made cigarettes are now sold in the Islands and some of the leading Manila cigarette fac- tories are putting out their own bi'ainls and ])ackings of cigarettes made fi'oni American tobacco. The style of ])acking in these new brands follows American fash- ion. They ai'e wi*app<'d in cello])hane and are up to the minute in appearance. 10 52nd year THE TOBACCO WORLD July 1, 1932 LEAF TOBACCO AGAIN THIRD EXPORT EAF tobacco regained its place last year as the third chief export product of the United States, according to a statement recently made public by the Chaml)er of Commerce of the United States. Exports of tobacco in 1931 amounted to .503,531,000 pounds for a total value of $109,626,000. More leaf tobacco is consumed in this country in the manufacture of cigarettes than in any other tobacco product, and American cigarettes are known the world over for their quality and mildness wiiich authorities in the industry claim' result largely from the superior tobaccos used' and the removal of impurities through the employment of modern methods of manufacturing such as the toasting process including the use of ultra violet rays. American tobacco is sold in some form in nearly every country in the world. Last year leaf to- bacco displaced gasoline and naphtha to regain its for- mer rank as third among United States export prod- ucts. AMERICAN CIGAR OFFICES MOVED According to an announcement made last week, the offices of the American Cigar Company have been moved from their former location at 111 Fifth Avenue, New York City, to 15 Exchange Place, Jersey City, N.J. The move is the outcome of the recent transactions which placed the American Cigar Company more com- pletely under the ownership of the American Tobacco Company, and w^hich made it no longer necessary to maintain the spacious offices at 111 Fifth Avenue. 0. pany's passed weeks ' weeks, was a ciates. A. T. PACIFIC COAST HEAD DIES W. Peaslee, head of the American Tobacco Com- Pacific Coast Division for the past six years, away on June 17, following an illness of several duration. Although he had been ill for several Mr. Peaslee 's death was entirely unexpected and shock to his many friends and business asso- He is survived bv his widow- and two children. MIDLAND CORPORATION APPOINTS WINNINGHAM The Midland Cigar Corporation of Detroit, Mich., announces the appointment of C. C, Winningham, In- corporated, of that city, as advertising and merchan- dising counsel. According to the present plan, the Midland Cigar Corporation will introduce several complete lines of cigars before fall. JAILED IN TOBACCO IRREGULARITIES Juan March, multi-millionaire deputy who had been described on the floor of Parliament at Madrid as ''the arch enemy" of the republic, was recently ar- rested on charges of irregularities in obtaining the Moroccan tobacco monopoly shortly after the govern- ment had imprisoned a grouj) of alleged leaders in a monarchist plot. HOWARD CULLMAN ATTENDS CONVENTION Howard S. Cullman, of Cullman Brothers, Incor- porated, well-known leaf tobacco ])rokers in New York City, has ])cc'n attending the Democratic National Con- vention in Chicago, whore he has been an ardent sup- porter of Alfred E. Smith for tlie Democratic nomina- tion for President. ELEVEN MONTHS' WITHDRAWALS FOR CONSUMPTION — Decrease First 11 Mas. -\- Increase Cigars: Fiscal Yr, 1932 Quant ii if ('loco A United States .... 3,297,696,585 + 34,529,555 Porto Rico 83,253,490 — 52,066,480 Philippine Islands 159,331,005 + 18,172,580 Total 3,540,281,080 + 635,6()5 Class B— United States.... 64,960,284 — 242,930,479 Porto Rico 822,750 — 2,066,000 Philippine Islands 1,024,926 — 328,255 Total 66,807,960 — 245,324,734 Class C United States .... 1,035,622,238 — 444,131,206 Porto Rico 4,483,144 — 4,006,412 Philippine Islands 417,900 — 506,244 Total 1,040,523,282 — 448,643,862 Class D— United States.... 64,448,189 — 35,588,341 Porto Rico 19,500 — 15,700 Philippine Islands 5,502 — 4,428 Total 64,473,191 — 35,608,469 Class E— United States.... 9,660,351 — 8,625,855 Porto Rico 500 — 3,100 Philippine Islands 18,077 — 51,664 Total 9,678,928 — 8,680,619 Total All Classes : United States.... 4,472,387,647 — 696,746,320 Porto Rico ....... 88,579,384 — 58,157,692 Philippine Islands 160,797,410 + 17,281,989 Grand Total . . 4,721,764,441 — 737,622,029 Little Cigars : United States.... 278,372,480 — 44,469,799 Porto Rico 4,500,000 — 1,050,000 Philippine Islands Total 282,872,480 — 45,519,799 Cigarettes : United States.... 95,353,843,339—12,770,366,189 Porto Rico 6,614,700 — 11,556,300 Philippine Islands 1,636,040 — 406,90:; Total 95,362,094,079 —12,782,329,392 Large Cigarettes: United States.... 4,077,529 — 1,709,024 Porto Rico 790,500 — '1,219,500 Philippine Islands 1,200 — 5,600 Total 4,869,229 — 2,934,124 SnuflF (lbs.): All United States. 34,973,382 — 1,694,234 Tobacco Mfd. (lbs.): United States.... 294,925,861 — 1,591,63/^ Philippine Islands 965 — 502 Total 294,926,826 — 1,592,139 July 1, 1932 Say You Saw It in The Tobacco World 52nd year 11 Did you say 10^ ? Yes. I said IQC! PIPE-READY MODEL SMOKING TOBACCO COMMON SENSE CIGARETTE TAX IN CHILE SAID TO BE OPPRESSIVE T MAY be recalled that in Chile tlie Internal Revenne tax on cigarettes and cigars was sharply increased, effective in starch, 1931. At the time, according to a report received in the Tobacco Division of the Department of Commerce from Assistant Commercial Attache Harold IM. Randall, there was considerable objection to the increase on the icrounds that it would not have the desired effect, namely, increased revenues. It was further objected to as materially adding to the cost of the low-priced cig- arette consumed by that part of the population having very small incomes. The result, as far as cigars are concerned, has been to lessen their sale to compara- tively few. On the other hand, cigars are generally imported and w^ould not now be obtainable owing to the refusal on the part of the Commission on Control of Foreign Exchange to grant permission to buy the ex- change necessary for importation. The effect on the sales of the cheapest cigarettes, which previously sold at 20 centavos a package and now sell at 30 centavos, is likewise quite considerable. Estimates place the average monthly consumption of this type of cigarette at 40 per cent, to 50 per cent, of normal. Likewise, where it w^as expected that the tax increase would provide an additional six million pesos per year to the government, present results indicate that not more than two million pesos will be realized. This lowered consumption also lessens the demand for raw tobacco w^hich is entirely produced within the country for the cheap cigarette. It is estimated that 75 ]>er cent, of all the cigarettes used in the country are cheap. For this reason the increased taxes of last March were most strongly felt by the producx^rs and nsers of the cheap cigarette, since the law^ raised the minimum tax per packet of cigarettes from five to ten centavos. In view of the unsatisfactory results realized, prop- aganda is now being made to the end that the law may ho changed, so that taxes will be levied entirely on a l»orcentage of the retail price which is the general basis now but does not apply to the very cheap products so long as the clause requiring the minimum of ten cen- tavos is maintained. PORTO RICO-AMERICAN REPORTS LOSS The Porto Rican-American Tobacco Company re- ]Hnts for the March, 1932, quarter consolidated net loss of $40,834, after all charges, including interest. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCK. Wheeling, W. Va. .„„ Presideni CHARLES J. EISENLOHR, Philadelphia, Pa Ex-President JULIUS LICHTENSTEIN, New York, N. Y Vice-Prefident WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-Preiident GEORGE H. HUMMELL, New York, N. Y Vice-President H. H. SHELTON", Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va Vice-President HARVEY L. HIRST, Philadelphia, Pa ...Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio .•••...•......•.*.»* President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio •.*....«.••.••*«••••»««•.••. Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City ..„,, ,.„.,, ,,.«, President MILTON" RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN, New York, N. Y First Vice-President IRVE>r M. MOS.S, Trenton. N. J Second Vice-President ABE BROWN, 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President BAYUK PREFERRED DIVIDEND Bayuk Cigars, Incorporated, have declared the rcKular^ quarterly dividend of $1.7') on the first ])r('- 1 erred stock of liie comj^aiiy, payal>le .Inly 1.") to slocU- holders of record June 30. Three mouths ago common dividend was omitted. CONSOLIDATED CIGAR DIVIDEND ACTION Directors of the ( Vnisolidated Cigar Corporation at their rcciMit regular meeting took no action on the (luarterly dividend on the common stock due at this time. Three months ago the dividend was reduced to 75 cents from $1.25. 12 52nd year THE TOBACCO WORLD July 1, 1932 \ RETAIL STORE PROBLEMS | So many persons are unaware of the many aids to business which have been carefully prepared by the United States Government, and so many of those who are aware of these facilities fail to take advantage of them, that tve are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) RETAIL STORE PLANNING {Continued from previous Issue) Location of Non-Selling Departments The Receiving Department ]Vrercliandise must, of course, be brought into a store before it can be displayed in the selling depart- ments, and the receiving room with its checking and marking sections will necessarily be located with con- venience to incoming goods and should occupy space which would be unsuitable for selling purposes. The receiving room must also adjoin the reserve stock room or have communication with it by means of convenient transportation facilities. ^larked merchandise not in- tended for regular stock passes to the reserve stock room or warehouse. Many modern stores, however, do not have a reserve stock room, on the theory that pro- viding this extra space for storage encourages over- buying. It has also ])een the experience of a number of merchants that the need for reserve stock storage is seasonal, and l)efore the holidays or at any other time when it is necessary to have a particularly large stock on hand it may l)e cheaper to use a warehouse than to appropriate store space. The Delivery Department The more valuable the store location the more diffi- culty there is likely to be in providing ample space for the sorting, checking, loading and trucking necessary for the handling of merchandise after it has been sold. In congested business districts of the largest cities it is considered that even space in the rear basement is too valuable to be given over for this purpose, and some merchants have established delivery departments out- side the store building, in a few cases at a considerable distance where comjjaratively low rent is possible. Store Offices and Workrooms A store wliich includes a credit department may properly allow space for this ])urpose on an up])er flooi where privacy may l)e insured. Ade(iuate elevator service and its proper position on the floor may make the credit department easily found. It may also prove of advantage to place the credit offices so that customers must pass through selling departments that might otherwise be somewhat slighted. The ''will-call" sec- tion would logically reipiire about the same location as the credit department, were it not for the fact that the "will-call" section is patronized, as a rule, by a differ- ent class of people and in some stores is not sufficiently profitable to warrant any space but that which is the least desirable for selling purposes. The policy in this section differs from the credit department in that the purchaser makes a deposit and receives the article when fullv Daid for. Many stores do not have a "will-call" section at all, perhaps for the reason given by one de- partment store manager who vouchsafed the opinion that it too easily develops into a "won't-call" section unless the initial payments are kept reasonably high. Other sections, such as those for keeping records and accounts, are generally systematically arranged in places from which the executive offices are easily ac- cessible and which are not of great value for sales space. Fitting rooms, alteration rooms, and millinerv workrooms must, of course, be located close to theiV respective selling departments. Service Departments Reference has l>een made to the rapid growth of services to store visitors whicli has resulted from the competitive situation in the retail field. What means to use for the attraction of trade and the convenience of customers and how much space should be given over to customer service depends upon the size of the store, the class of trade, and comi)etitive influence. Informa- tion bureaus, telephone booths, tea service, lounging chairs, and manicuring tables are among the con- veniences frequently found on the main floor balcony, particularly in department stores. The balconv, or mezzanine floor, is an unsuitable location for the sell- ing of most classes of merchandise and provides a good view of the attractions on the first floor; consequently it is considered an ideal place for taking care of one or more of the services mentioned. Practically all large stores have a rest room, and this convenience should be situated on an upper floor near a well-considered mer- chandise display. Special services in the form of motion-picture shows, demonstrations, music, lunch rooms, beauty par- lors, children's barlx^r shops, and many others, have been tried in some of the large stores. Expensive serv- ice departments often prove of no direct profit to the retailer and tend to increase the price of merchandise. Therefore, in choosing a location for conducting any special service in his store, the progressive merchant aims to make the service act as both a distributing and advertising agency. In other words, if the service is really desirable and is properly located, it may be the means of circulating people through the bypaths of the store and indirectly advertising goods which need this additional publicity. Layout of Administrative Offices Without competent administration there could be no efficient merchandising establishments, and since in a retail store of any kind the goods to be sold must have first prominence, the administrative offices lit- erally represent the power behind the scenes. In the small specialty shop the merchant can prob- ably spend most of his time outside his office in contact with the activity throughout the store. He may not even have an office other than a desk at the rear of the store. The larger the store the more varied will be the duties of an administrative officer, or the more nearly specialized will be the work of several adminis- trative officers. It is, therefore, through a study of the duties of the executives that the best location of their offices can ])e determined. Purchasing agents and others wlio must frequently receive callers are con- ( Continued on Page 14) Julv 1, 1932 Say You Saw It in The Tobacco World 52nd vear 13 ALL TOBACCO PRODUCTS DOWN IN MAY HE following comparative data of tax-paid products indicated ])y monthly sales of stamps are obtained from the statement of Internal Revenue collections for the month of May, 1932, and are issued by the Bureau. (Figures for May, 1932, are subject to revision until published in the annual report) : Products dgars (large) : ('lass A No. Class B No. Class C No. Class D No. Class E No. 1931 314,514,100 13,716,427 128,653,790 9,513,814 901,530 ■May- 1932 285,609,705 4,485,307 73,875,390 4,489,857 93,107 Total 467,299,661 368,553,366 dgars (small) No. 32,498,000 27,068,000 ( ^igarettes (large) .... No. 376,660 292,724 Cigarettes (small) ... .No. 10,447,680,180 8,685,337,417 The above statement does not include tax-paid products from Porto Rico and the Philippine Islands. This information is shown in supplemental statement. Tax-paid products from Porto Rico for the month of May : ■ May Products 1931 1932 Cigars (large): (Mass A No. 9,627,815 7,282,365 dass B No. 327,300 6,000 Class V No. 827,826 281,000 Class D No. 5,000 300 Total 10,787,941 7,569,665 Cigars (small) No. Cigarettes (large) ....No. Cigarettes (small) . . . .No. 5(K),000 110,000 1,000,000 5(K),(K)0 40,000 700,000 Tax-paid products from the Philippine Tslands for the month of Mav: Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. 1931 1932 14,511,870 14,144,970 97,550 8,807 36,652 33,418 5(X) 160 160 3,525 Total 14,646,732 14,190,880 Cigarettes (large) . . . .No. Cigarettes (small) . . . .No. Tobacco, manuf'd lbs. 1,000 148,540 83 1,000 154,540 64 Quantities of tax-paid products shown in al)Ove statements are indicated by stamp sales for the month. Comparative Statement Internal Revenue Collections First elereii uKniths Fiscal year Objects of Taxation 1931 1932 Tol)acco manufactures : (Mgars $16,697,990.55 $13,315,501.22 Cigarettes 324,430,47:112 285,880,564.38 Snuff 6,590,170.61 6,295,208.97 T()])aeco, chewing and smoking 53,380,699.60 53,058,427.18 n ROCKY FORD , . , in the popular INVINCIBLE size is a Handsome Cigar . . . Priced right . . . S}/2 inches of long filler, imported Simiatra wrapper, machine-made perfection of shaj>e. The Invincible displays its value and there- fore gets the sales. Ask your jobber. ROCKY FORD LONG FILLER IMPORTED SUMATRA WRAPPER e p. LorOlard Co, "BEST OF THE BEST" M..........d b, ^ SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Keg West. Florida UNITED CIGAR ASSESSMENT UPHELD Assessment of ii^l9,132 on the i)ar value and non- par vahie stock of the United (Mpir Stores ( Vmipany hy the Xew Jersey State Tax Commissioner was uphekl hy the Supreme Court in Trenton on June 15. The eomimny sought certain exem])ti()ns and main- tained tlie total tax should have l)cen $14,882. The ( V)urt upheld Francis I). Weaver, ])resi(lcnt ((f tlie Slate Board of Tax Ai)peals, Imt advised, liowever, an appeal be taken to the Court of Errors and Aijpeals for a iinai determination. 14 52nd year THE TOBACCO WORLD July 1, 1932 RETAIL STORE PROBLEMS (Continued from Page 12) venic'iitly located near elevators so that they can }j€ easily approached. In contrast, tliere may be execu- lives whose duties require that they be secluded from distracting influences. The top floor of a large store is commonly used to advantage for administrative offices and other non-selling departments which are not fre- (juented by customers. Conclusion Efficient methods of getting merchandise into the store, caring for it, displaying it, and disposing of goods sold may be directly responsible for increased sales without increasing the overhead expense. This study is concerned with such methods, however, only in so far as they may be made more efficient through effective store planning. It is doubtful if any one store can attain perfection in store layout, but the experience of many merchants has contributed certain well-defined principles of ideal store planning which serve to emphasize the im- portance of this ])hase of modern retailing. A full realization of its importance may inspire tlie retailer with a keener desire to match his standards with the best and ultimately to reduce prices through increased sales at less expense. BUDGETARY CONTROL IN RETAIL STORE MANAGEMENT Introduction IN ANALYSIS of the statistics of business fail- ures, "the mortalitv table of business en- deavor," indicates that something is wrong with the operating policies of many business organizations. The fact that some estal)lishments continue to operate without a fair rate of return also tends to bring forcibly to the attention of business men the necessity of more scientific management on the part of executives. The retail store is conspicuous in the field of busi- ness enter|)rise for the numi)er of casualties. Failures have been attributed to a lack of sufficient working ca])ital, to a |)oor location, and are often falsely laid at the door of economic changes. In summarizing these canses, however, j)oor management in some form ap- pears to l)e the root of many such failures. This study deals with one phase of the retail-store management problem — that of control. Budgetary control is not a new subject for consideration, though heretofore it has been practiced chiefly by govern- mental ])odies. Only to a slight extent have the prin- ciples of scientific r-ontrol been applied to industrial organizations, and only in the past four or five years has the merchant appeared to realize that liis business, as well as that of the manufacturer, is a science, and that many of the methods which are being adopted in the management of other [)hases of industry can be (Mjually well ai)plied to retailing. Particularly is this true of budgetary control. Though technical processes and the minute details of installation and operation of any budget system must necessarily follow the establishment of a definite purpose and must be leased on sound principles, budget- ing can not be looked upon as a rule-of -thumb pro- --•edure. In other words, it is essential that the system i\X the business rather than that the business fit the sys- tem. By budgetary control is meant the intelligent use of the budget in controlling the various sources of I)rofit. The ])udget i)art of Inidgetary control has been defined as **a plan for the future, based on past ex- perience and the present economic situation, together with anticipated changes." A budget sheet, therefore, is t^o the manager what the blueprint is to the engineer. It is recognized that this analogy is not quite true, for the engineer rarely has to change his plans; on the other hand, when the whole budget plan or guide is put into eifect it is likely that situations will arise which will necessitate some changes. But in the main, the plan is fairly well followed, just as the engineer fol- lows his blueprint. The resulting success in both cases is dependent on the foresight and ability of those re- sponsible for the plan and on the possibility of obtain- ing accurate data. When considering the budget the quantity and quality of detail and not the principles vary with the different classes of retail stores. The specialty store, the department store, the general store, the chain store, and the mail order house obviously differ in the num- ber of departments and in the method of sales. The various types of stores are further divided into units of unequal size within each specific type, and this dis- similarity suggests technical difference in manage- ment. For example, in some of the very small con- cerns all or most of the managerial functions are per- formed by a single executive, whereas in the larger organizations each may l)e performed by a different individual. Though the method of inventory, complete- ness of the accounting system, and statistical organ- ization or lack of organization, may modify consider- ably the means which are used to accomplish the end, these are not fundamental differences so far as the use of a budget system is concerned. This method of control is adapt al)le to any type store. Budgetary control is fundamentally an economic analysis and not a mere routine procedure. Therefore this bulletin does not attempt to present material whicli can serve as a detailed guide in any part of this phase of store management. Its sole object is to give un- biased consideration to the principles of budgeting for control as applied to retailing. Purposes of Budgetary Control Basic Guide to Activities The first purpose of budgetary control should be to establish a map of future business. When a shii) leaves port, the captain presumably has a goal (the port to which he is bound) ; he carries the chart of the course, and instruments, such as compass and sextant, to keep him on this course. The captain of a business must take the same precautions in guiding his busi- ness ship over the rough seas of competition and through alternating periods of prosperity and depres- sion. The established quotas and limits are the ports to- wai-d which the business pilot is heading; the budget is the map; and the comparison of actual with esti- mated figures corresponds to the ship's compass and sextant, for by this the direction of movement and the location of the business is determined. Here the anal- ogy ceases, for if the ship is off its course, the rudder is merely moved so as to correct the direction. In the case of business both the direction and goal are changed — that is, the budget quotas and limits are re- adjusted to fit the new situations. Nevertheless, the fact remains that if the management knows what is to be done it can take the most direct means of doing it. It is difficult enough to hew to a line when the line is distinct. Waste and inefficiency, if checked every pe- riod, can be stopped immediately, and the substitution of records for memory makes for exactness. (Continued on Page 16) July 1, 1932 THE TOBACCO WORLD 52nd year 15 DUYS ISSUES ANNUAL REPORT OF A. C. M. ACTIVITIES OLLOWING the recent meeting of the board of directors of the Associated CUgar ^Manufac- turers and Leaf Tobacco Dealers Association, and the decision to forego the annual conven- tion this vear, John H. Duys, president of the asso- ciation, mailed his annual report covering the activi- ties of the association, to all members of the organ- ozation. The report was as follows: I regret to advise you that, as foreshadowed in my report of last year in which I called tittention to the decrease in cigar production in the United States, there has been a further substantial decline in all classes and especially in Class C. This decline has l)een steady, each month showing a smaller production than the corresponding month a year ago. This downward tendency, however, is in line ^ylth the conditions prevailing in many other industries; in fact, during recent months cigarette production has shown a much larger decrease than that of cigars. The situation, therefore, is in no way attributable to a decline in the popularity of cigars but is due solely, in my opinion, to the decreased buying power of the general public. Cooperative Advertising Time has only served to strengthen my convic- tions, heretofore expressed, on the subject of a compre- hensive publicity campaign. At various times during the past vear the leading cigar manufacturers have been approached on this subject but owing to business conditions it was found very difficult to arouse en- thusiasm and it proved impossible to raise sufficient tunds to warrant the undertaking of a worthwhile cam- ])aign. It is a serious question as to whether the trade IS acting wiselv in failing to launch a movement at this time. Certainly there is something to be said in favor of nndertaking the cooperative advertising of our products when business is at a low ebb for the very purpose of stimulating it. The rescue of our industry from the prevailing depression would be the prime ob- ject of a well conceived project of cooperative publicity. However, it would seem that the industry is not dis- posed to undertake this movement under existing con- ditions and we must await a revival of business before making anv further attempts to proceed. Our main efforts today must be concentrated upon the making of good cigars. We must give the smoker the best possible values for his nickel and his dime and I am glad to state in this connection that cigars retailing at five cents, ten cents and upwards are to- dav superior in quality to those offered the public dur- ing the past fiftv years. Some extraordinary values also are being offered in cigars retailing lielow five cent s. Sumatra Embargo As predicted in my last report the Dutch growing companies notified the* American Government last Oc- tober of the abandonment of contract labor on their tobacco plantations; hence the Treasury Department decided to allow the 1931 crop to enter the United States. As future crops will be grown under free labor conditions no special ])ermission for their entry will be necessarv and further embargo is out of the ques- tion. Your* association was able to secure this ruling both in Washington and in Holland due to the untiring •ffoi'ts of its members and the cooperation of practi- callv the entire industry. Increase in Internal Revenue Tax on Tobacco Products Soon after the convening of Congress last Decem- ber it l)ecame necessary to direct our etTorts toward the prevention of the imposition of additional taxes upon our already overburdened industry. We drew to the attention of Congress the constant decline in cigar production and I believe we convinced Congress that an increase in the tax on cigars would mean less rather than more income for the Government. In the hope of balancing the budget Congress adopted a number of new taxes but without any further mention of the cigar industry. When the subject of the imposition of a sales tax was broached we protested against its ap- plication to cigars, pointing out that our products were already heavily taxed under the internal revenue laws and that the pyramiding of a sales tax would so hamper our industry as to cause a decrease in production and, therefore, a decline rather than a gain in revenue. Tn this connection we urged our members to appeal to their Congressmen and Senators and we were able to convince Congress that cigars should be excluded from the proposed manufacturers' sales tax. I deem it my duty, however, to call your attention to the fact that Congress has authorized appropria- tions aggregating so vast a sum that it is a serious question as to whether the tax program just agreed upon will actually balance the budget of the Treasury Department. There is good reason to fear that the relief projects upon which Congress is now working will require the imposition of additional taxes and that legislation to provide more revenne may be undertaken in the near future, possibly at the next session of Con- gress which convenes December 5 and adjourns March 4 next. We must hold ourselves in readiness to op- pose any further attempts to tax our products and I therefore solicit your hearty cooperation for the pro- tection of our industry. State Taxation of Tobacco Products During the past year various bills for the taxing of tobacco ])rodiicts were proposed in the legislatures of a number of States. Your association through its members was successful in defeating practically all of these bills, special thanks being due to Mr. Howard S. Cullman for his untiring efforts in behalf of our in- dustry. In the various activities we have successfully prosecuted, our organization has again demonstrated the tremendous value of a strong trade association. Without the information we were able to impart to our representatives in Congress in advance of legislation there can be no doubt that Congress would have lacked timely information regarding conditions prevailing in our industry. Treasurer's Report Our total receipts of the year from dues amounted to $9,376.08, and we have a cash ])alance in the banks, as of June 1st, 1932 : $2,566.90. On account of the busi- ness depression now prevailing, it has been decided by vour board of directors, to reduce expenses wherever possible, and dues for the coming year will be 60 per cent, of the amount charged to you heretofore. Bills will ])e mailed about July 1st, to our members. Executive Committee At the meeting held by your board of directors cm June 2d, 1932, it was decided to appoint an execu- tive committee of seven members, comprising six cigar mannfactnrers, and the president as ex-olTicio mem- ber, and vour president has appointed the following: ' Mr. B. Ci. Meyer, chairman, General Cigar Com- panv, Xew York City. 'Mr. T. K. Brooks, T. E. Brooks & Company, Red Lion, Pa. (Continued on Page 18) 16 52nd year THE TOBACCO WORLD Julv 1, 1932 NeAvs from Congress (Continued from page 8) schedule has a maximum of 25 cents for parcels valued at not exceeding $100. Kates for C O. D. service are increased from 15 cents for collections up to $50 to 17 cents for collections up to $25 and 22 cents for collections between $25 and $50. These changes are to be followed ])y increases in the rates for money orders, the present schedule, ac- cording to postal officials, not being high enough to cover the cost of the service. FOREMAN OPENS PHILADELPHIA OFFICE C. N. Foreman & ('omi)any, Ked Lion, Pa., manu- facturers of the "White Swan" cigar, a long filler five- cent brand, packed in boite nature boxes and also in regular packings, has established a branch sales office at 401 North Broad Street, this city, under the manage- ment of Horatio Batezell as Eastern sales manager. Mr. Batezell is well known to the local trade, hav- ing been associated with the Otto Eisenlohr & Brothers firm for a number of years as credit manager, and more recently associated with the retail department of the Congress Cigar Compan3\ Included in Mr. Batezell's sales force are Eddy Crooks and Charles Dutkin, both recently associated with the Congress Cigar Company, and George Schneider and Lewis Wonder, who are also experienced salesmen in the merchandising of cigars. Mr. Batezell 's territorv includes Pennsvlvania, southern New Jersey, Delaware, Maryland and the Dis- trict of Columbia. Mr. Crooks will cover Philadelj)hia and nearby ter- ritory; Mr. Dutkin has been assigned to the territory south of Philadelphia, including Delaware, Maryland and Washington ; Mr. Schneider will cover New Jersey, and Mr. Wonder northern I^ennsylvania. With such a selling organization, the ''White Swan" will soon be found in all the important retail outlets in the above districts. Among the contestants at the annual "Black- stone" golf tournament held at Baltusrol Golf (^lub, Short Hills, N. J., on June 13th, were Messrs. Jones, Brogan and Shetzline of Yahn & McDonnell Cigars, Philadel[)hia distributors of the "Blackstone" cigar. Mr. Shetzline was tied for second place in the tournament with Henry Pinney, of the H. E. Shaw Company, Worcester, Mass., and Mr. Shetzline drew a "calamity Jane" putter as his prize. The tournament was well attended by "Black- stone" distributors and was followed by a dinner and entertainment at the Twin Kiveits Club, ^fountain View, N. J. Recent visitois in town last week were Harry W. Buckley, president, and Fred W. Cook, Lima, Ohio; John A. (Campbell, Detroit, Mich., and W. D. Rosen- berger, Chicago, all members of the board of directors of the Autokraft Box Corporation. The party was re- turning from New York City, where they i)articiimted in the annual golf tournament of the i\ S. Tobarra Journal, and where Messrs. Buckley and Cook were in- cluded in the list of prize-winners. HARRY SHACKLETT DEAD HE MANY friends of Harry I. Shacklett were shocked to learn of his ultimely death last week, following an illness of many months' du- ration. Mr. Shacklett had a host of friends here who had known him for a number of vears as representative of the "G & S" brand and also of the "Carlton" brand manufactured by A. Gutierrez, and distributed here by Yahn & McDonnell Cigars. Mr. Shacklett had been ill for a long time at his home in the Ambassador Apartments, at Twenty-first and Walnut Streets, and had just returned to his home in Virginia about a month ago in the home of regaining his health. He passed away on Wednesday, June 22, and fu- neral services were held from his home in Marshall, Va., on Friday, June 24. RETAIL STORE PROBLEMS {Continued from page 14) Coordination of Activties The second purpose of budgetary control is to co- ordinate the activities of the business. While it is true when there are several persons individually responsi- l)le for a specific function each is likely to over empha- size the importance of his own field of activity, it is also true that in a small business the various functions of management are often less well defined, and may be even more difficult to coordinate than in the case of larger establishments where official duties are classi- fied and a manager placed in charge of each office. How- ever, the advantages of functional coordination apply both to large and to small stores. Selling is the "little idol" in many retail organ- izations. Due consideration is not always given to the cost of sales and to the margin which they should yield. The bringing together of the costs and possibil- ities of the constituent elements of the selling process enables the retailer to approximate the correct ratio between sales volume and expense. Not only are the offices of purchasing, personnel Avork, financing, and store operation coordinated with selling, but the subdivisions within the selling depart- ments are purposefully coordinated by the proper functioning of budgetary control. All that is important to the success of the retailer does not, however, occur within his own store. Real l)eril awaits the chief executive who has his eyes on the internal performance of his business to the extent thai he fails to adjust his organization to the slow changing as well as to the rapidly fluctuating economic forces which affect retailing. The bringing together of external and internal statistics in order that the trend of business may be recognized and wasteful practices eliminated is facilitated by means of a properly con- structed and properly operated system of budgetary control. A consideration of the panics and crises of 1819, 1837, 1857, 1873, 1893, 1907 and the crises of 1914 and 1920, with the violent fluctuation of department stoic sales as far back as statistics for them are avail- able, shows the importance of this function of the bud^ get. (To he continued) Julv 1, 1932 Say You Saw It in The Tobacco World 52nd year 17 GENERAL CIGAR EARNINGS ARXIXGS of the General Cigar Conii)any in May were better than in any previous month this year, and orders already in hand indicate that June earnings will exceed those of May. Xet for the first six months will be over ii5()oO,0()0, (»r a little better than $1 a common share after pre- ferred dividends. General has increased its proportion of the total cigar business in the half year. The second half year is usually better, and it is likelv that earnings during it will cover two ^\ quar- terly dividends for the period, but it is probable that the entire year's earnings will still be short of full $4 dividend requirements. There is no immediate prospect of anv dividend re- vision. The next regular directors' meeting conies in the first week of July, and the regular if^l dividend on common will be declared. The management expects conditions three months thence will justify the regular dividend, even if earnings continue poor. The company has pursued a conservative dividend policy for years, paving the present rate (or equivalent on old stock) since 1924, though earnings each year have been ^\ to $4 a share over dividend requirements. General has about j|;4,0()0,(X)0 cash— about :!;1,000,- 000 less than at the end of 1931— and owes no money excei)t $2,800,000 serial notes, of which $700,000 are (hie each December 1. After the note installment this vear and ])refen*ed dividends, and allowing for a full $4 common dividend. General Cigar exjjects to have more cash than shown on the last annual lialance sheet. A. T. COMPANY EARNINGS GAIN Despite some falling off in sales in the first half of 1932, earnings of American Tobacco Company have been running above 1931. Not all American Tobacco products are showing declines in line with general to- l)acco consumption. Smoking tobaccos are doing well; "Hull Durham," with the benefit of a price cut last summer, is running some three and one-half times sales of a year ago ; i)i[)e brands are also ahead. Cigarette sales a year ago were gaining competi- tivelv, so the present decline from li)30 is not so severe as from 1931. Toward the end of 1931, sales of "Lucky Strike" began more closely to reflect a drop in con- sumption, and the company hopes that sales compari- sons, with the second half "of 1931 will be more favor- able than with the first half. Contributing to the increase in profits in the first half have been lower leaf tobacco costs and a cigarette price increase. The latter factor will not be operating in the second half, liecause comparison will be with a l)eriod when the cigarette price level was the same. EASTERN JOBBERS MAY JOIN WESTERN {Continued from Page 6) Anister-Kirtz, Inc., Cleveland, Ohio; Louis G. Kustas, Kustas & Chamberas, Poughkee])sie, X. Y.; Irven Moss, Hudson Countv Tobacco Co., Trenton, X. J.; .John R. 8hulick, Shuli'ck-Tavlor (V)., Wlieeling, W. Va.; L. K. Black, Goldsmit-Black, Inc., Pittsburgh, Pa.; C. D. Hunter, J. P. Manning Co., Boston, Mass.; H. S. Koseiithal, J. P. Manning Co., Boston, ^Iass. Also John l.oughran, Daniel TiOUghran & Co., Washington, 1). (\; Sidney Grossman, Linker Cigar j^»vjiv»x^v»j^vfyjix»yji\»jiv8iytiS/jiv8/Jiv»ytv»jiv»4y«^ Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. 1). Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATINO CIGAR FLAVORS Make tobacco in«Uow and smooth in character and Impart a most palatable flavor FLAVORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTIJN. ABOHATIZEI. BOX FLAVORS. PASTE SWEETENERS FRIES 8k BRO.. 02 Reade Street. New York Co., Louisville, l\y. ; Andrew Jaoohy, lloiiso of Jacoby, Atlantic City, X. J.; Henry Brenner, M. Breinier & Sons, IlarrisbuiTC, I*a.; Mae ,Iae()lM)\vitz, Hudson Countv Tobaeeo Co., Jersev Citv, X. .1.; K. C. Dear- styne, Dearstyne Bros. Tobacco Co., Albjiny, X. V.; J. L. Scliwarz, Scliwarz auin, Xewbur^li, X. V.; Tliomas M. Connor, Josej)!! Connor & Sons, Inc., Xorwich, Conn. Otljers were: W. F. Voun*::, George W. Cocbran Co., Wasliington, D. C.; H. J. lia'^^onegra, Flniira To- bacco Co., Flmira, X. V.; (A F. Patrick, Patrick McHea Tobacco Co., Kiclimond, Va.; LeHov X. Sutton, Bridg:e- ton, X. J.; L. F. I^>all, Kin- (l^ar Co., Flint, XHcli.; J. F. Obrecbt, Jr., J. F. Obrecht & Co., Baltimore, Md.: Wil- liam S. Scbwarz, Keilson Cigar Co., Cincinnati, Obio; L. B. Sleet, Ca])ital Cigar k Tobacco (N)., Wasliington, D. C; F. W. Layton, F. \V. Layton «Jc Son, Pennsgrove, X. J.; Jonathan Vipond, Scranton Tobacco Co., Scran- ton, Pa.; Henry (Jrunst, Clitf Weil (Igar Co., Rich- mond, Va.; Addlph A. Berg'en, M. P.ergen Sons, Fliza- beth, X. J.; Jacob Shapiro, Sha])iro Bros., Xewburgh, X. v.; Adam Winter, lN)Ughkeepsie, X. V.: Xelson Kberbach, A. B. Cunningham Co., Philadelphia, Pa.; Barney Gohlberg, Capitol Tobacco ('o., Hartl'ord. Conn., and Charles Kd(Mi, F. H. Cryg'ier Tobacco (*o., Hartford, Conn. J' 1 JULY 15, 1932 18 52nd year Say You Saw It in The Tobacco VVorld July 1, 1932 m m Tobacco Merchants' Association Registration Bureau, J?w^Yo&"cm Schedule of Rates for Trade-Mark Services Effective April 1, 1916. ftegistration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowance of (2 will be made to membera of the Tobacco Mer- chants' Association on each registration. Note B— If ji report on a search of a title necessitates the reporting of more than ten (10) titles, but less than twenty one (21), an additional charge of On* Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-op* (31). an additional charge of Two Dollars (IC.OO) will be made and so an aoditional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATIONS NEW FANGLE:— 46,043. For cigars only. June 9, 1932. Schaefer Cigars, Inc., Dayton, Ohio. MELLOROOT:— 46,049. For pipes and smokers' articles. June 17, 1932. L. & H. Stern, Inc., Brooklyn, X. Y. DUNATI: — 46,050. For cigars, cigarettes, chewing and smoking to- bacco and snuflF. June 17, 1932. C. J. DuBrul, Cincinnati, Ohio. TRANSFERS WINCROFT:— 43,417 (T. M. A.). For all tobacco products. Regis- tered July 28, 1923, by George Schlegel, Inc., New York, N. Y. Transferred to Coonv-Bayer Cigar Co., F^ort Wayne, Ind., June 7, 1932. LOBELIA:— 11,815 (Trade-Mark Record). For cigars. Registered June 1, 1892, by L. C. Wagner & Co.. New York, N. Y., and 109,115 (U. S. Patent Office), for cigars, cheroots, little cigars, cig- arettes and manufactured tobacco, by Mi Favorita Cigar Co., Inc., New York, N. Y. Through mesne transfers acquired by Antonio Cortina, and re-transferred to Lucius Cigar Factory, Inc., Chicago, 111.. June 4, 1932. LA FLOR DE RYAN & RAPHAEL:— 45,437 (T. M. A.). For ci- gars. Registered January 9. 1928, by Jose Ferlita Cigar Co., Chicago, III. Transferred to Antonio Cortina, and re-transferred to Lucius Cigar I'^actorv, Inc.. Chicago, 111., June 4, 1932. LUCIUS DE LUXE:— 45,129 (T. M. A.). For cigars. Registered January 13, 1928, by Jose Ferlita Cigar Co., Chicago, 111. Trans- ferred to Antonio Cortina, and re-transferred to Lucius Cigar Fac- tory. Inc., Chicago, 111., June 4, 1932. LUCIUS: — 24,552 (Trade-Mark Record). For cigars. Registered May 4, 1901, by George Schlegel, New York. N. Y. Through mesne transfers acquired by Antonio Cortina, and re-transferred to Lucius Cigar F'actory, Inc., Chicago, 111., June 4, 1932. JUNE TOBACCO ADVERTISING DROPS UNE was the fir.st month since January during which advertising expenditures by the tobacco industry in national magazines failed to exceed the total for the corresponding month of 1931. The June total in national magazines was $302,464, a decline of 20.3 per cent, from $454,523 registered for June a year ago. The expenditure in June farm maga- zines was $34,250, a drop of 12.6 per cent, from last year. The total for both was $396,714, oif 19.7 per cent. Of the amount expended in national magazines, $283,- 743 was accounted for by cigarettes, $3167 by cigars, and $75,554 by manufactured tobacco and smokers' supplies, according to figures compiled from national advertising records by the business survey department of Dorrance, Sullivan & Company, New York advertis- ing agents. An expenditure of $3,428,448 was registered in national magazines and national farm magazines by the tobacco industrv for the first half vear, as compared with $3,113,991" for the first six months of 1931, an increase of 10.1 per cent. National magazines ac- counted for $3,197,948 of this total, ahead 9.4 per cent.; and farm magazines accounted for $230,500, ahead 20.3 per cent. Radio advertising over national networks con- tinued to gain during May with a total of $542,761, a percentage gain of 27.8 over last year. For the first five months of the vear the radio expenditure was $3,596,605, a gain of 103 per cent, over $1,771,283 spent for this medium during the first five months of 1931. DUYS ISSUES ANNUAL REPORT {Continued from Page 17) Mr. William E. Waterman, Waitt & Bond, Incor- porated, Newark, N. J. Mr. M. C. Gryzmish, Alles & Fisher, Incorporated, Boston, Mass. Mr. Manuel L. Perez, Marcelino Perez & Company, Tampa, Fla. Mr. S. T. Gilbert, Deisel-Wemmer-Gilbert Corpo- ration, Detroit, Mich. This committee was appointed from a geograph- ical standpoint and we have tried to select one cigar manufacturer of each of the principal cigar manufac- turing sections. The committee is to have full charge of all legislative matters affecting the cigar trade. Other Matters It is with extreme pleasure that w^e can inform you that Mr. William L. Crounse w^ho has represented the trade in Washington for a great many years, has fully recovered from his recent illness, and wall again represent our industry in his usual able and efficient manner. Your president has again addressed a letter to Senator Capper with reference to the Capper-Kelly Honest Merchandising Bill, which is still before Con- gress, urging the early passage of this bill, same as last year. I ask you again to get in touch with your Kepreseiitastives and Senators this coming autumn, when they are at their homes, and endeavor to pledge them to favor the Capper-Kelly Bill. I sincerely hope you will take an active part in this movement and all our members will do their bit toward creating a strong sentiment for anti-price-cutting legislation in the new Congress. We will continue to maintain the bulletin service for the benefit of our members, placing before them ]uompt reports upon the monthly production of cigars and other tobacco products, the monthly crop reports of the Department of Agriculture, the quarterly cen- sus of leaf tobacco holdings by dealers and manufac- turers, legislative happenings of importance, etc., etc. In addition, w^e wall also continue to give special infor- mation to individual members in response to inquiries. Our Washington Office as heretofore, wall operate promptly with members seeking to have expedited, their applications for passports to visit foreign coun- tries. Annual Convention Solely from an economic standpoint it was de- cided by your board of directors to omit the usual annual convention this year. The expense of a con- vention amounts to several thousand dollars and is contributed by individual members. Under present business conditions we did not care to ask for these funds, especially as no matters of immediate impor- tance were to be brought to the attention of our mem- bers at this particular time. THE SUMATRA TOBACCO CROP Th€ Sumatra tobacco crop for 1932 not so good as 1931, better than 1930. Uplander estates generally sat- isfied with rains, quality, size, foot and sand leaves. Lowland had fairly satisfactory rains March and April ; May rather dry. Lowlands crop in the whollia|)e. iht' liu iririhic i>i>i'i.\^-h il>\alm'ainl tlirrc- lore ;:«'lr- l\\v sal«'s. \>k Mnir johlMT. t automatic machines oilVr A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AITOMATIC AGE 2810 3. Michigan Avenue Chicago lllmok m LONG FILLER IMPORTED SUMATRA WRAPPER f J "BEST GF THt BEST" ^ A, •f" — ^ttp— .*■- — ■■^im II ■» I ■■ ■■^■w wi" -■■ ■ ■■ !!■ 1 ■■■—■«■ ■ ■— - WW— ■ H ■■ I 1! mm PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH MUTILATED PAGE ^ After all "nothing satisfies like^ a good cigar ^ 'I Fashion Note for the well-dressed cigar • • WOODEN BOX • * The longstand iig pork and beans alliance, the famous Smith Brothers partnership, the life-long friendship be- tween Tom and Jerry — none of these is more inevitable or more lasting than the fondness of a fine, mellow cigar for a fragrant wooden box. WHEN BUYING CIGARS THE BIST CIGARS ARE r*.>F- I.** WOODEN B.>XEi ^ggM^^-'l^-S^-^l^-i^^'*-^'*-^''^^^^^^^^^ Volume 52 THE TOBACCO WORLD Number 14 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., vmder the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, JULY 15, 1932 Foreign $3.50 U. S. A. TO BECOME CENTRE FOR MAKING OF INTERNATIONAL BRANDS OF CIGARS HE moviiij< of the t'actorios wlioro the finest ('u])an tobaccos are rolled into the world fa- mous "La C^orona" Havana cigars from the city of Havana to Trenton, X. J., was con- tirmed last week by L. S. Houston, chairman of Henry Clay, Bock & Company, limited, the marketing com- pany for (^iban international brands of cigars. Mr. Houston stated that as the result of savings to be effected, the retail pi'ice of these cigars in the American market would be reduced approximately 50 ])er cent, to the public because of the production ad- vantages to be secured from Amei'ican manufacture, due to the more favorable dutv on raw tobacco from Cuba than on the finished i)roduct and due to greater efliciency of American labor. Mr. Houston pointed out that this move w^ill greatly increase the markets for the best grown (Hiban tobaccos and will help bring new j^rosperity to the Cuban tobacco growers and increased employment to the agricultural population of Cuba at this time. "In the past twenty years," said Mr. Houston, "the total annual exportation of cigars from Cuba de- clined from approximately 'M)0 million to less than 50 million in IJK^l. Through this change of place of man- ufacture, this decline will be checked and popularity for the finest Havana cigar rebuilt throughout the world. "The curing and ])rocessing, stripping and blend- ing of tobaccos for these cigars will be continued in Havana under the same supervisory personnel, follow- ing the same scientific methods as heretofore. The tobacco fully prepared for rolling will be transferred to a customs bonded factory at Trenton, where care- fully trained operatives will roll the tobacco into the finished product. "The plant in Trenton will be equipped to pro- duce artificially the favorable atmospheric conditions which are only available naturally at Havana. "The world famous cigars now to be manufac- Inred in the United States include: "La Corona," "Cabanas," "Henry (^ay," "Villar," "Bock," "Manuel Carcia Alonso" and "La Meridiana." They have been favorites of smokers all over the world for from seventv-five to one hundred vears. "The United States will, as a result of this move, become a manufacturing centre for international brands of cigars, smoked all over the world. "Anticipating the ra])id growth in volume of sales as the result of the price reduction," said Mr. Hous- ton, "we have planned a great increase in our plant- ings in the Vuelta Aba jo section of Cuba. "In 1932, the planting of 575 additional acres, representing a direct expenditure of about $800,000, ;nid giving employment to many hundreds of Cuban 1 amities, is contemplated on our company owned plan- tations. It is expected that this acreage will be fur- SMITH REYNOLDS KILLED MITH REYNOLDS, one of the heirs of the Reynolds toba-cco fortune, was shot and killed at his home in AVinston-Salem, N. C, on Julv 6th. Mr. Reynolds was found shot on the sleeping porch of his home early on the morning of July 6th following a party in his home the previous evening. Evidence at first pointed to suicide but a coroner's jury later reached the decision that he was killed by "a party or parties unknown." He was twenty years old and during the last three years he packed an airplane trip around the world and two marriages into his life. Young Reynolds was one of four children who shared jointlv in the estate of their father. He had an elder brother, R. J. Reynolds, Jr., known as Dick, who was reported by members of the Reynolds household to be somewhere in Europe at present. Two sisters, Mrs. (^harles Babcock and Mrs. Henry Walker Bagley, both live in Xew York. His sisters w^ere reported to be on their wav home. His mother, who married Edward Johnson, of Baltimore, after the death of R. J. Reynolds, Sr., died several years ago. Smith Reynolds' personal fortune has been esti- mated in excess of $25,000,000. Neither he nor his brother was ever actively connected with the manage- ment of the R. J. Reynolds Tobacco Company. His roman-ce with Libby Ilolman, a Cincinnati girl, whose voice of a peculiar, husky timber caught the fancy of Broadway and lifted her to the heights of stardom, began after the collapse of an earlier marriage with Anne Cannon, daughter of a wealthy Concord (N. V.) textile manufacturer. Their marriage lasted a little more than a year. He settled a million dollars upon her and their infant daughter. SANTAELLA HEAD IN NEW YORK A. Santaella, head of A. Santaella & Company, Tam])a manufacturers of the "Optimo" l)rand, left that citv last week enroute for Jacksonville where he ft will board a boat for New York City. Mr. Santaella is accompanied by his family and they will spend the summer in the North. iher increased in 1933. This substantial contribution to Cuba's economic life is important from an agri- cultural and employment standpoint to Cuba and has been so recognized by the Cuban authorities." The four companies concerned are: Henry Clay, Bock & Company, Limited, The Havana Cigar and Tobacco Factories, Limited, Havana Commercial Com- pany and H. de Cabanas y Carbajal. MUTILATED PAGE 52nd year THE TOBACCO WORLD July 15, 1932 NATIONAL JOBBERS ASSOCIATION COMPLETED OLLOWING is the official report of last Sat- urday's jobbers' meeting in Cleveland, Ohio: **The National Association of Tobacco Distributors" was formed as a permanent or- ganization at a distributor's convention held at the Statler Hotel, Cleveland, Ohio, Saturday, June 25, and Sunday, June 26, 1932. The following officers and committees were chosen: President, C. A. Just (Peter Hauptman Tobacco Company, St. Louis, ^lo.). Vice-Presidents, E. Asbury Davis (F. A. Davis & Sons, Baltimore, Md.) ; E. W. Harris (Hamilton, Harris Company, Indianapolis, Ind.); Jonathan Vipond (Scranton Tobacco Company, Scran ton. Pa.). Treasurer, George Scrambling (Geo. B. Scrambling Company, Cleveland, Ohio). Secretary, Max Jacobowitz (Hudson County To- bacco Company, Jersey City, N. J.). Executive Committee, Joseph Kolodny (Jersey City Tobacco Company, Jersey City, N. J.); Renz Ed- wards (F. E. Edwards Tobacco Company, Cincinnati, Ohio); George Frings (Frings Brothers Company, Philadelphia, Pa.). Directors, John Loughran (Daniel Loughran Com- pany, Washington, D. C.) ; E. C. Dearstyne (Dearstyne Brothers Tobacco Company, Albany, N. Y.) ; Roy King (Roy King Tobacco Company, Flint, Mich.); Henry Gunst (Cliff-Weil Cigar Company, Richmond, Va.); Harry Kirtz (Amster-Kirtz, Incorporated, Cleveland, Ohio); A. L. Haas (Donovan, Haas Company, Buffalo, N. Y.) ; C. E. Watkins (Woodhouse Company, Detroit, Mich.); Vernon Fox (Nathan Fox Company, Chicago, 111.); L. K. Block (Goldsmith-Block Company, Pitts- burgh, Pa.). i The purpose of creating an association of tobacco distributors does not differ from the purpose of creat- ing any association in any other industry. The object of a trade association is to find con- structive ways and means of improving conditions in — and eliminating the ills of — an industry. The formation of this association and tlie election of its officers, executive committee and board of di- rectors should instantly convey to everyone interested in the tobacco products industry that such an organiza- tion is of vital importance to distributor and manufac- turer alike and we invite the friendly co-operation of all concerned. The National Association of Tobacco Distributors, Per Max Jacobowitz, Secretary. A CORRECTION IN MANILA NEWS NOTES In the July 1st issue of The Tobacco World, under the heading "News of the Manila Trade," we pub- lished a statement to the effect that more than a million American-made cigarettes are now sold in the islands. Mr. Bond, of the Manila Ad Agency, has called our attention to the fact that the statement should have read : **More than a billion," and we are glad to have the opportunity to make this correction inasmuch as Mr. Bond states that this is rather important in view of the fact that American-made cigarettes have won 20 per cent, of the cigarette trade in the Philippine Islands, and that the balance of trade of tobacco prod- ucts generally, and the allied industries, favors this country. TOBACCO ASSOCIATION OF U. S. CONVENTION HE Thirty-second Annual Convention of the Tobacco Association of the United States was held at Virginia Beach, Va., on June 30 and July 1, with a large number of tobacco dealers, manufacturers, etc., in attendance. President A. B. Carrington, of Danville, Va., in his annual address laid the following facts before the con- vention : The year 1931 will long be remembered for low prices, and complications of various sorts that affected not only the tobacco trade, but every product grown in this country. The leaf tobacco trade lias suffered pos- sibly as little as any other business, and the manufac- ture of tobacco is the one bright spot that has not only kept up itself, but has given encouragement to other manufacturing interests. While the farmer has re- ceived exceedingly low prices for his tobacco, yet it has probably sold better by comparison than anything else that comes out of the ground, whether it be cotton, po- tatoes, copper, coal, etc. The high prices that prevailed since 1926 have pro- duced crops that have been in excess of the demand, and there has been an overproduction of bright tobacco in the past five years, and the low prices of 1931 were in a measure the result of this overproduction. Manufacturers are all well stocked and dealers faced such large losses in the "carry-over" from pre- vious crops in many instances that they have not been able to get money out of the old tobacco with which to buy the new crop. This financial condition was another great obstacle to the whole situation. Entering 1931 with large surpluses, held by manufacturers as well as dealers, and facing conditions that had not existed here- tofore, everyone trading in tobacco was up against a proposition that was unusually dangerous and one which had to be handled with great care. Stocks of leaf tobacco in the United States owned by dealers and manufacturers amounted to 2,373,761,- 000 pounds on April 1, 1932, compared with 2,150,778,- 000 pounds on April 1, 1931, according to a report re- cently released by the Tobacco Section Bureau of Agricultural Economics, United States Department of Agriculture. Total stocks show an increase of 360,981,- 000 pounds during the first quarter of 1932, compared with an increase of 297,302,000 pounds during the first quarter of 1931. Stocks of flue-cured tobacco on hand April 1, 1932, were 845,642,000 pounds, compared with 831,347,000 pounds on April 1, 1931. Flue-cured stocks were 14,- 295,000 pounds higher than they were a year ago on April 1. They decreased 47,456,000 pounds during the first quarter of 1932 wliereas the decrease during the same period of 1931 amounted to only 37,636,tKX) l)ound8. Burley stocks were about 135 million pounds higher on April 1 than they were a year ago. The April 1, 1932, report shows 702,834,000 pounds on hand, com- pared with 568,010,000 pounds on hand April 1, 1931. During the first quarter of 1932 Burley stocks increased 212,220,000 pounds, compared with an increase of 160,- 453,000 pounds during the same period of 1931. This increase may be accounted for by increased production in 1931, and by an apparent decline in the rate of con- sumption. Foreign countries, to which a large percentage of the bright tobacco goes, were economically and finan cially not in position to take tobacco except at 1oa\ (Continued on Page 16} July 15, 1932 Say Ton Saw It in The Tobacco World 52nd year NEVER PARCHED OR TOASTED Si^teh to Camels then leave them— if you can IF YOU want to know the difference be- tween a truly fresh cigarette and one that is parched or toasted, light a Camel. As you draw in that cool, fragrant smoke notice how smooth and friendly it is to your throat. Not a hint of sting or bite. Not a trace of burn. That is because Camels are blended from choice Turkish and mild, sun -ripened Domestic tobaccos, and are made with just the right amount of natural mois- ture and kept that way until delivered to R. J. REYNOLDS TOBACCO the smoker by the Camel Humidor Pack. Camels are never parched or toasted. That's why Camels bring you so much unalloyed enjoyment. That's why they are so much milder; why they leave no cigaretty after-taste. If you haven't tried Camels lately, get a package today and see for yourself what you are missing. Switch over to Camels. Then leave them — if you can. COMPANY, Winston-Salem, N. C. • IMI. R, J, iUynolda Tobacco Cooipaiiir Camels Matte FRESH-Kep< FRESH --^/^ ► Don't rtmope the Camtl Humidor Pad — il is protection against per- fume and powder odors, dust and germs. Buy Camels by the carton for home or office. The Humidor Pack keeps Camels frtsh 52nd year THE TOBACCO WORLD July 15, 1932 ZIFFERBLATT OFF FOR EUROPE EORGE ZIFFERBLATT, head of George Zifferblatt & Company, manufacturers of the ''Habanello" brand, will leave from New York City on Saturday on l)oard the S. S. '*Lafa- yette," of the French Line, for a four week's trip to Europe, and a much needed rest. Mr. Ziiferblatt will be accompanied by Mrs. Zif- ferblatt, and they expect to return about the middle of August. During Mr. ZitTerblatt's absence the active man- agement of his firm will be under the able direction of George M. Lex, who is well known throughout the industry, and who recently joined the firm as secre- tary. ''Habanellos" are enjoying a splendid call throughout the country in the various territories where they have been placed. ROY KING KILLED IN ACCIDENT Word has been received at Bayuk Cigars head- quarters of the death of Koy King, of the King Cigar Company, Flint, Mich., Bayuk distributors, as the re- sult of an automobile accident. Mr. King was well known, and liked, throughout his section of the country, and his deatli was a de- cided shock to his many friends. PENNSYLVANIA CIGARETTE TAX UP AGAIN The State cigarette tax bill killed in the last special session of the Pennsylvania State Legislature, was reintroduced last week in the House, during the second special session recently called to consider unemploy- ment relief, by Representative Hermans, of Luzerne County. The bill provides for a one cent tax on eaeh ten cigarettes sold within the state. **Mapacuba" cigars, product of Bayuk Cigars, In- corporated, are maintaining a pleasing demand in the various territories where they have been placed, and repeat orders are proof of their popularity among those smokers who appreciate the fine qualities of Bayuk products. Milton Wolf, Bayuk territorial manager for Wis- consin, is making splendid progress in that region in increasing the distribution and sale of Bayuk Cigars. UNITED LAUNCHES PIPE CAMPAIGN AST WEEK newspapers carried an announce- ment of a pipe smokers' contest, sponsored by the United Cigar Stores Company, in which $1000 in cash will be distributed as prizes for the best letter of not more than fifty words answering the query, **Why every man should smoke a pipe." Answers must be mailed before midnight of July 23d to the United Pipe Smokers' Contest, 625 Madisoii Avenue, New York Citv. First prize will be $150; second prize, $75; third prize, $50. There will also be thirty prizes of $10 each, and sixty-five prizes of $5 each. Winners are expected to l>e announced in all United Cigar Stores about Au- gust 19th or 20th. The company also inaugurated special deals on pipes in their stores last w^eek, offering any two $1 pipes for $1.01, or any two fifty-cent pipes for fifty-one cents. Trade Notes The ^'Monticello" brand of John Wagner & Sous is >howing a steady increase in popularity in this terri- tory. Last week Messrs. Richland, of the Federal Adver- tising Agency, and P]lster, factory man for the Porto Rican-Anierican Tobacco (^ompany, journeyed to Phila- deli)hia for a conference with the sales force of Yahn & McDonnell Cigars, local distributors of the **El Toro" cigar, to acquaint them with plans for an aggressive advertising campaign for "El Toros" which will be inaugurated over N. B. C. radio stations on Saturday, July 30th. The program will be featured each Saturday night from 9 to 9 :30 P. M. E. D. S. T., and will feature such well-known artists as Gus Van, the Pickens Sisters and Vic Arden's orchestra. **E1 Toro" cigars have been showing a nice in- crease in demand in this territory recently and the forthcoming radio programs are expected to make a substantial further increase in this demand. July 15, 1932 Say You Saw It in The Tobacco World 52nd year Do you inhale? Certainly ♦ ♦ ♦ 7 out of 10 smokers inhale knowingly ♦ • . the other 3 inhale unknowingly Do you inhale? Seven out of ten smokers know they do. The other three inhale without realizing it. Every smoker breathes in some part of the smoke he or she draws out of a cigarette. Think, then, how important it is to be certain that your cigarette smoke is pure and clean — to be sure you don't inhale certain impurities! Do you inhale? Lucky Strike has dared to raise this much- avoided subject . . . because certain impurities concealed in even the finest, mildest tobacco leaves are removed by Luckies' famous purify- ing process. Luckies created that proc- ess. Only Luckies have it! Do you inhale? More than 20,000 physicians, after Luckies had been fur- nished them for tests, basing their opinions on their smoking experience, stated that Luckies are less irritating to the throat than other cigarettes. "It's toasted** Your Protection — againtt irritatioii»agiin«t com[^ 0. K. AMERICA-TUNE fN ON LUCKY STRIKE— 60 modem minutes with the world's finest dame orchestras, and famous Lucky Strike features, every Tuesday, Thursday and Sat- urday evening over N. B. C. networks. 8 52nd year THE TOBACCO WORLD July 15, 1932 July 15, 1932 THE TOBACCO WORLD 52nd year 9 \y ii.iiLdii t..i.iiii' HillH. ItiLP f^s Sill iiiiriiN nil Ii|«|II News From Congress _ 'AND Federal Departments :»Mm»,,i'tmmU>ki ITH Congress out of the way for four months, business and industry, until next De- cember at least, now know just where tliey stand and can plan for operations ander the new tax law, increased postal rates and other legisla- tion enacted during the session which will have an ef- fect upon commerce. Despite the fact that it was in session more than seven months, Congress accomplished little in the way of the rehabilitation of prosperity. It did enact a tax bill from which the administration has high hopes, and provided for some reduction of Federal expenses, al- though considerably less than had been hoped for by the President. Congress also created the Reconstruc- tion Finance Corporation, which again has accom- plished less than was anticipated. An effort was made to revise the tariff by divesting the President of his authority under the flexible tariff provisions, but Con- gress was unable to enact the bill over the President's veto. An almost continuous session of Congress during the first two years of the next administration in the event of the success of the Democratic party in the November elections would probably be required to carry out the proposals made in its behalf at the Chi- cago convention. The Democratic platform and keynote speech of Senator Barkley of Kentucky, almost of equal standing, contemplate tariff revision, agricultural relief, ap- proval of the five-day week in industry, revision of the Federal Reserve Act, restrictions upon stock market speculation and reorganization of the personnel of the Reserve banks. They would also reorganize tlie Gov- ernment service by abolishing every useless office and every unnecessary bureau and commission. Whether the Democrats would ever l>e able to carry their ambitious program to fruition is debatable, in view^ of the manner in which, with a clear-cut majority in the House and a practical half of the power in the Senate, they operated during the session when, without particular Republican opposition, months were re quired to pass the Government economy and unemploy- ment relief bills. Cj3 C!3 Cj] Investigation of bases for the valuation of foreign merchandise for the assessment of customs duties, with a view to determining the extent to which domestic values may properly l)e used for the levying of such duties, is shortly to be undertaken by the United States Tariff Commission, it has been learned. Although this survey was provided for by Con- gress more than two years ago, the Commission has made no move to carry out Congress' instructions, and From our I^ashington Bureau 622Albee Builoing it was only after vigorous agitation was started by the tariff group of the American Federation of Labor thai any recognition was given the survey. It is understood that the matter was laid before President Hoover, who instructed the Commission to begin the investigation without further delay. The proposal of the American Federation of Labor is that for dutiable purposes there shall be attributed to imported merchandise values applied to identical or comparable articles produced in the United States — the so-called American valuation plan. Ctj Ct] Ct) With a deficit of $2,885,000,000, the United States Treasury on June 30 brought to a close the ** reddest" fiscal year in peace-time history, in w^hich was recorded a tremendous decrease in receipts and a heavy gain in expenditures due to the depressed condition of com- merce and industry and efforts of the administration to turn the tide of business. Every effort now is being directed toward balanc- ing the budget, with the exception of public debt retire- ment, for the 1933 fiscal year and to meet a complete balance between receipts and expenditures, including a resumption of debt retirement, for the fiscal year 11'34. There is reason to believe that even though the budget remains unbalanced during the fiscal year just begun there will be a material reduction in the deficit as a result of the new tax program designed to a(lsxirrwr«vir?s\irrsvifr^ FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia, HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco melCow and smooth In character and Impart a most palatable flavor fUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. AKOyATIZEI. BOX FLAVORS. PASTE SWEETENERS FRIES & BRO., 02 Reade Street. New York F. E. WAYNE SUCCEEDS PEASLEE The American Tobacco Company lias announced the appointment of F. PI Wayne, formerly lield sales manaj^er for the company's forces on the Pacific Coast to succeed the late O. W. Peaslee, as vice-president and u:eneral manager of the company's organization in that territory. Mr. Wayne is well known throughout that terri- tor\ having been associated with the American Tol)acco Company for a number of years and having shown remarkable ability as a sales promotion man. Before being stationed in the Pacific Coast Terri- toiy, Mr. Wayne had acted as division manager in St. Louis for sometime, and prior to that time he had been field sales manager in the same city. AMERICAN MACHINE & FOUNDRY DIVIDEND DIVIDEND DirtH'tors of the American Machine and Foundry Company have ordered a (piarterly dividend of twenty v'cnls a sliaic on the common stock of the company, as f()mj)are(l with thirty-five cents ])aid ])reviously. The dividend is pavable August 1st to stock of record Julv 20. Barton Lemlein, of M. Sachs & (*ompany, Xew York City cigai' manufacturers, was a visitor at John Wagner & Sons lieadiiuarters last week. M. Sachs ss than twenty-one (21), an additional charge of One IJoIar ($1.00) wi 1 be made. If it necessitates the reporting of more than twenty ^LV "i', u '^^^ '*'^" thirty-one (31), an additional charge of Two Dollars (5-.UU) will be made and so an additional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported REGISTRATION DUANE: — 46,051. For all tobacco products. May 2, 1932. D Emil Klein Co., Inc., New York, N. Y. TRANSFERS WILLIAM J. DUANE:— 26,356 (Tobacco Leaf). For cigars, che- roots, cigarettes and tobacco. Registered October 26, 1903 by O L. Schwencke Litho. Co., Brooklyn, N. Y. Transferred by Ameri- can Colortype Co., New York, N. Y., successors to original regis- trants, to D. Emil Klein Co., Inc., New York, N. Y., Mav 23 1932 PETER PAN:— 31,460 (Trade-Mark Record). For cigars ciga- rettes, cheroots and tobacco. Registered October 18, 1905, by S. R Moss, Lancaster, Pa. Through mesne transfers acquired by John b. Grill Evansville, Ind., and re-transferred to the Sun-Ray Cigar Co., Dallastown, Pa., June 15, 1932. FLOR DE AVALON:— 27,312 (U. S. Tobacco Journal). For cigars cigarettes and cheroots. Registered June 10, 1903, by The Calvert Litho. Co. Chicago, 111. Transferred to American Box Supply Co. Detroit, Mjch.. and re-transferred to Federal Cigar Co., Red Lion, Pa., June 27, 1932. TAMPA PRODUCTION HOLDING WELL Although June, 1932, production of the Tampa cigar factories shows a decline as compared with the same month of 1931, the figures disclose a healthy busi- ness on Tampa cigars in view of present conditions. June, 1932, production was 30,745,000 cigars as compared with 39,990,000 for the same month of 1931, but IS an increase of approximately 1,500,000 over the May, 1932, production figures. The June production by classes was as follows; Class A— 15,832,000; Class B-280,500; (Mass C— 10 - 873,000 ; Class D— 3,722,000, and Class E— 35,000. 1933 PACKAGING EXPOSITION The American Management Association has an- nounced the dates for their third annual packaging exposition which will be held in the Hotel Pennsylvania New York City, on March 7 to 10, 1933. ' A succession of daily conferences and clinics deal- ing with consumer packaging, marketing, packing and shipping will be held in conjunction with the exposition. BURKART RESIGNS FROM W. D. C. Last week it was announced that John Burkart, who had been head salesman in the William Demuth & Company offices in New York, covering the trade in the Metropohtan area and adjacent territory, had resigned troni that company. He has been associated with the VV. D. C. for more than twenty-three years. LOUISIANA CHAIN TAX BILL SIGNED The recently enacted chain store tax bill in the ^tate ot Louisiana was signed by Governor Oscar K. Allen last week, thus leaving a graduated tax on chain store organizations doing business in that State. The V''I.oyi.^r ^ ^K^"^^ ^^^ ^^ ^^^ minimum and ranges up to $200 tor each unit in the chain in excess of fifty RETAIL STORE PROBLEMS (Continued from page 14) The fact that the secular trend of an individual store or particular type of store mav change from time to time must be recognized. That is, it mav be iiicreas ing 10 per cent, a year, then mav drop to 5 per cent tor a while, and may then even decline from that point • but the momentum of an organization can be depended upon to warrant the extension of a secular trend for a short i)eriod into the future. Another element in the sales figure is known as seasonal variation. This is the normal percentage oi' change from month to month within the vear; for ex- ample, December has a larger volume of sales than Juiv ot the same year. It is possible to establish a normal percentage by which December sales will exceed Julv August, September, or any given month. " ' The influence of so-called cycles and abnormal fluc- tuations, with changes in communicating facilities and store-management policies, have been considered in the determination of expected market conditions and in making an analysis of the market. The forecast is made by projecting into a definite period in the future the sales that might normally be expected, in the light of past experience, and then modi tying the data in accordance with the results of the other previously mentioned factors. If it is desired to establish individual salesmen's (jiiotas, the past records, standards in the industry, and price levels should be used in determining what s'houid be expected of each salesman. Obviously, the inventory at the beginning must also be classified into size, quality, and brand. Jt may be necessary to start by merely planning the purchases bv departments, then by sul)divisions of departments, and, finally, the stage of purchases by individual items mav be reached. The ideal merchandising jjlan as far as profits for one year are concerned might be to have all goods com- pletely sold out at the end of the season. However, this is not feasible. There must be enough stock to provide for selection and to guarantee '* ample" supplv. The degree of accuracy with which the sales budgef can he computed, coupled with past experience, gives the basis tor determining what this carry-over should be. The detrimental etiect of a short stock upon good will in the case of staple goods is evident. There are in use three common methods of obtain- ing an inventory, namely, perpetual, estimated, and physical.- The use of the first makes possible the ob- taining of much useful information in the operation of a budget. Besides the actual record of the minute mer- chandise classification stated above, the record of when the particular article was first ordered, of prices ex- changed or credited, according to size, etc., and other iiitormation found desirable in order properly to con- trol buying, is with small additional effort recorded when this system of accounting procedure is in use. The effect of a rapid turnover of stock is to de- crease the amount of goods wliich must be on hand ai any one time in order to fulHll a certain sales program, in order to determine what this rate of turnover should he, past experience, standards of the trade, market con- ditions, and the increased needs of the public and the store must be carefully considered. This is an impor- tant factor in the computation of what the normal stock should be. mnn'Il!^'''; .Txu "* different methods of computing the inventory in com- mon use. (I) The retail method, and (2) the cost method; but this is obviously not the important consideration in this connection. {To be continued) :iiiiiriiiiiii(ifii(riiifiiiriifiiiiiiii:^4 VOLUME 52 &i)( UBRARrNo. M .■■^naa^^Mii ■» -' -■ " -- -* ■■ !■ 11 n automatic machines offer A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AUTOMATIC AGE 2810 S. Michigan Avenue Chicago Illinois "BEST OF THE BEST" Manufactured hy A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Key VVesl, Florida m PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. ^ After all nothing satisfies like^ a good cigar Fashion Note for the well-dressed cigar: WOODEN BOX The longstanding pork and beans alliance, tlie famous Smith Brothers partnership, the life-long friendship be- tween Tom and Jerry— none of these is more inevitable or more lasting than the fondness of a fine, mellow cigar for a fragrant wooden box. WHEN BUYING CIGARS Remember that Regardless of Price THE BEST CIGARS AKE PAOCtD l!N WOODEN BOXES CT^li;>;-i''i2J:LUJi^l'^JM|t^'liW^ii2.*|l^i|aii^^ Volume 52 P^li^l'^¥^*l«^mM^>l>iJIM|tiHmmi<|ti^|t^^^ THE TOBACCO WORLD Number 12 EstabUshed 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 21, 1909, at the Post Office. Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, JUNE 15, 1932 Foreign $3.50 TOBACCO TRADE CONFERENCE CHARTERED rPKEME Court Justice Plioonix In^raham, sitting in tlio Supreme Court, Xew York County, approved the certificate of incorpora- tion of the Tobacco Trade Conference, Incor- poiated, under the membership corporations law of the State of Xew York. The completion of the incorpora- tion, inyolvintr the tiling of the papers in the Depait- inent of State in Albany, is now being consummated. The following are members of the organization committee, who brought about this incorporation: .Morris Baum, Director Independent Retail To- l)acconists' Association ; Max Berliner, treasurer. Tobacco Salesmen's As- sociation of America; Irving Berkman, member, Indepeiideut Ketail To- bacconists' Association ; Horace R. Daniels, member, Brooklyn Merchants' & Salesmen's Club; Joseph P^'reeman, former president, Tobacco Sah'smen's Association of America; Herman J. (Joldwater, president, Tobacco Sales- men's Association of America; J\r. Gordon, vice-president, Silver Ring Stores, In- corpoi-ated ; Nathan Jelling, member. Independent Retail To- bacconists' Association ; Michael Kohen, ])resident. Independent Retail To- bacconists' Association ; Ben L. Laschow, vice-])resident, Tobacco Sales- men's Association of America; .lonas J. OIlendortT, chairman, board of directors, and former president, Tobacco Salesmen's Association of America ; Jesse^ (r. rowell, senior past i)resident, Tobacco Salesmen's Association of America; Joseph Saremsky, director, Silver Ring Stores, In- t'orporated; Harry Stein])erg, president, Newark Tobacco Salesmen's Association ; M_orris Weinstein, president. Tobacco Salesmen's Association of America. The following were nominated as oflicers. to serve until the next annual meeting: President, Mr. (Jold- water; vice-i)resident, Mr. Laschow; secretarv, Mr. Ollendorff; treasurer, Mr. Weinstein. The legal matters, relating to the incorporation, were supervised by Ik^njamin C. Ribman, of 29 Broad- way, Xew York. The pui-jxjscs of the Tobacco Trade Conference as outlined in the certilicate of incorporation are as fol- lows : "Fostering of trade and commerce in connection with tobacco and tobacco products, and the interest of those engaged in the trade of selling tobaceo and to- l>acco ])rodu('ts at wholesale or retail, and of those hav- (Continued on Page 16) MATCH COMPANY ASSETS FOUND UK tii'st important asset of the International Match Coni])any was uncovered on June 1st in Xew Yoi-k when Referee Oscar W. Ehr- horn diselo^ed the existence of serial notes on the Turkish (Jovernment with a face value of $14,255,- 000. He appointed the Irving Trust Company as sole trustee to negotiate a settlement with Turkish officials whereby the notes would ])e taken over. James X". Rosenberg, counsel, termed the development the ''most constructive" yet in li(|uidating the match company's atfairs. ^riie notes represent part of an issue with a face value of $17,500,000 which were taken up by the Amer- ican-Turkish Investment Coi-poration, an International Match subsidiai-y, in connection with the granting of a Turkish match concession to the late Ivar Kreuger. Referee Khrhoiii also authorized Rosenberg to initiate a suit to reurain 350,000 shares of the Diamond Match Companv, which are held bv four banks as col- lateral for a loan of $4,000,000 to International ^Latch. It was further disclosed that a number of safety- deposit boxes held by Kreuger had been discovered in X'ew Jersey and that action would be taken to open them in the hope that further assets might be found. Summonses were served on Monday upon Lee, Iligginson & Company and the (luaranty Company of Xew Yoi'k, who ])articipated in the original sale of $50,000,000 International Match Corporation bonds in this count i-y, to see if either or both are liable for losses >ulVered by investors. TIk' action was brought ])y Mrs. Florence Bram- ^on, of Xew York City, throusrh the law firm of House, llolthusen cV McCloskey. Mrs. Bi'amson claims that she i)urehased a $5000 par value ten-year 5 j)er cent, convertible gold debenture bond of the International Match Coiporation on January 27, YXM, paying $4808. She asks that the oriirinal sum advanced be returned to iiei- by the bankers. The action, which will serve as a test case in- \()l\ing th(^ entii-e $50,000,000 flotation and whether the underwriting houses can be forced to return that i»niount to the buyers, was instituted in the Supreme (V)ui't of Xew Yoi'k. Pa])ers weic seixcd on Jerome 1). (ii-een, a partner of Lee, Iligginson «Jc Company, and on AV. Ripley X^'lson, secretary of the Guaranty Com- ]>any of Xew York, which is the investment affiliate of ilie (luaranty Trust Company. In briiming her suit, Airs. Bramson states that she bought the bond from the (Juaranty Company. She is suing both the Guai'anty Company and Lee, iliggin- son k Company, the sponsoring house for the issue, in an alteriuitive action, leavini; it to the discretion of the Coui-t to decide which if either of the two institutions may l)e held responsible. (Continued on Page 16) 52nd year THE TOBACCO WORLD June 15, 1932 MIDLAND CIGAR CORPORATION ORGANIZED HE Midland Cigar Corporation has been or- ganized under tlio laws of the State of Dela- ware, with authorized capitalization of $100,- 000, and the factory will be located in Detroit, Mich. Officers of the corporation are Bart F. Van Huy- stee, president and general manager; William R. Jacob, vice-president and production manager, and H. W. Sterling, secretary-treasurer and credit manager. The officers of the corporation are w^ell known in the business world with wide executive experience. Bart F. Van Huystee, president, is a former fore- man with the General Cigar Company, Webster Cigar Company, Deisel-Wemmer-Gilbert Corporation and the Tegge Jackman Cigar Company. He is a univer- sity graduate in business administration and econom- ics, and is considered an authority in efficient cigar manufacturing. Mr. Jacob is a former executive of the San Telmo Cigar Company, in charge of fourteen plants and ware- houses as production and leaf tobacco manager. He is well known throughout the tobacco industrv and considered by many as one of the best leaf expeVts in the industry. TOBACCO TAX SHELVED IN NEW JERSEY The proposed sales tax in the State of New Jersev, which would have included tobacco products, has been abandoned by agreement between political leaders in the State and other means have Ijeen adopted to raise the necessary funds for unemplovment relief. Senator P]merson L. Richards, Republican leader in the State Legislature, made the announcement be- fore an audience which thronged the assembly chamber to protest against the proposed sales tax. Mr. Richards also made it clear that while the sales tax had been abandoned for the present, and it was hoped further consideration of the measure would not be necessary, such a step was still possible in the future if the other means of iinancing failed to materialize. Instead of the sales tax the legislature proposes to strike an item of $4,(KX),(K)() from the appropriations bdl granting that sum to the State teachers' pension fund, and to divert $10,00(),()(K) from the sale of the Camden-Philadelphia bridge bonds. Also New Jersey voters will be asked to sanction at the November elec- tion the diversion of $2(),(K)0,()()() alieadv appropriated for road construction within the State. ' NEW SIZE FOR "ROYALIST" Grabosky Brothers, Incorjjorated, manufacturers of the ''Royalist" cigar, have added a new size to their already popular line, in the Blunt shape, to retail at ten cents, and to work along with the Karl size, also a ten-cent seller. The 'VRoyalist" factorv continues to operate with a good volume of or(l<'is and they are well satisfied with the sales volume which tliev are ob- taining. TAMPA MAY PRODUCTION DOWN Production of cigars for the month of Mav showed a sharp dedino in the Tampa factories, with 29,182,212 cigars produced, a decline of more than 21) per cent, as compared with the May, 19.11, figures. Production l)y classes was as follows: Class A— 15,533,947; Class B— 353,819; (lass (^—9,988,050; Class D— 3,278,971, and Class E— 27,425. PLAN TOBACCO GRADING FOR 1932-1933 LANS for Federal-State tobacco grading serv- ice at auction markets the coming marketing season are being formulated by the United States Department of Agriculture. The tobacco grading service at Eastern markets heretofore has been furnished only where the grower paid a fee of five to ten cents per 100 pounds to have his tobacco officially graded and certified previous to sale. Change from this procedure was put into operation as an experiment on certain markets in Kentucky and Tennessee last December and the results have been so satisfactory that the new method has been adopted in place of the old. Under this new procedure, tobacco grading service is furnished where the warehouseman agrees to have all tobacco graded at a flat rate per hun- dred pounds. Department officials believe that in most markets tobacco grading service can be supplied at materially less cost when all the tobacco is graded. The advan- tages found in this procedure are that the graders are kept fully occupied, thus reducing the cost per hundred pounds for grading service, and buyers more quickly Ijecome familiar with the standard grades. It has been found that the grading service is much more effective in serving the interests of farmers and the tobacco trade under these conditions. NEW EXCISE TAXES IN EFFECT JUNE 21 While the recently passed Federal tax bill does not place any additional taxes on tobacco products, it ef- fects many items now sold by retail tobacconists as fol- lows : ^Matches — wood — two cents a thousand ; matches — paper — one-half cent a thousand. Candy — 2 per cent. Chewing gum — 2 per cent. Perfumes, toilet preparations and cosmetics — 10 per cent. Tooth paste, dentifrices, mouth washes, toilet soaps — 5 per cent. Soft drinks — various rates. Sporting goods and cameras — 10 per cent. The excise taxes are levied upon manufacturers and mostly become effective on sales made on and after June 21 and until June 30, 1934, but it is anticipated, and permissible, that the tax be passed on to the con- sumer. FIRMS REGISTERED Last week the following firms were registered, by l)ers()ns doing business under other names, in the Com- mon Pleas Court: Frank J. Kuhn, 408 West Tabor Road: Frank Kuhn, Jr., 503 Warring Road; John F. Kuhn, Jenk- nitown, Pa., and George J. Kuhn, 6410 North Eighth Sticet, trading as F. Kuhn & Brother, leaf tobacco cigais, etc., at 437 West Girard Avenue. Sarah P. irali)ern, 1015 West Wyoming Avenue, trading as Locust Sales Company, manufacturer of cigars, at 1015 West Wyoming Avenue. PHILIP MORRIS DIVIDEND A dividend of 1% per cent. (.43% cents per share) has been declared on the Class "A" stock of Philip Morris, Limited, payable July 1 to stockholders of rec- ord June 15th. June 15, 1932 Say Ton Saw It in The Tobacco World 52nd year f KESH! not parched or toasted I When you smoke Camels you enjoy all the rare goodness of choice Turkish and mild sun-ripened Domestic to- baccos. For the tobaccos that go into Camels are never parched or toasted. The Reynolds method of scientifically applying heat guarantees against that. Protected against drying out by the Camel Humidor Pack, a positive R. J. REYNOLDS TOBACCO air-seal, Camels come to you with their natural moisture still present, insuring a cool, mild, flavorful smoke wherever you buy them. If you haven't smoked Camels lately, compare their fresh, mild delight with the sting and burn of dusty dry ciga- rettes. Smoke Camels, then leave them —if you can. COMPANY, Winston-Sahm, N. C. Camels Mude FRESH — Kept FRESH # Don 7 rtmove tht Camel Humidor Pack — it is protKtion against ptrfumt and poudtr odors, dust and germs. Buy Camels by ihi carton for homt «f t^t, Tbt Humidor Pad keeps Camtls fruh 6 52nd year THE TOBACCO WORLD Tune 15, 1932 KRULL TO DISTRIBUTE NEW "RONDAX'' myjrj TLLIAM A. COPPJjE, eastern sales represen- Afm tative of M. .Marsh & Son, Wheelin^^ W. Va., lias been spending some time in Philadelphia durinji: the past two weeks assisting the Charles Krull Company in placing M. Marsh & Sons' new five-cent cigar, "Kondax," which the Krull Com- pany has just acquired as Philadelphia distributors. The "Kondax" has received a splendid reception from the trade and from the consumers, and the at- tractive red package can be seen in most of the good locations throughout the citv. The new "Kondax" brand is not a stogie, but a full-sized, shaped cigar with blended long Havana filler, and has all the earmarks of a winner. Mr. Copple has taken up his residence in Atlan- tic City for the summer months, and is located at 109 States Avenue, and extends a cordial invitation to members of the trade to look him up when in Atlantic City and assures us that they will receive a hearty welcome. Mr. Co|)ple has also ac(|uired distribution on Marsh jiroducls in Allantic City through A. ^lansbach, Athjntic City cigar distributor of wide experience and ability, and Marsh stogies are being featured in the World's Playground at present witli good success. Vahn (Jc McDonnell and Frings Bi-oihers Company are distril)uting Marsh products, exclusive of the new "Kondax," in Philadelphia, and smU's are increasing. E. COHEN & SON IN DIFFICULTIES An involuntary i)etiti()n in bankruptcv was filed last week against E. (\)hen & Son, well-known tobacco jobber, of 512 South Second Street. Creditors named are International Chocolnte S|)ecialties, Incorporated, $:?55; Biandle cV: Smith (Company, Incorporated, $94, and Joseph Koenig, $2<5. Heinian X. Silver is coun- sel. CONGRESS CIGAR DIVIDEND The Congress Cigar (Vmipany has declared a mpany, Tampa; Frank Swick, of Simpson, Studwell ^ Swick, and Fugene Po])per, of K. Popper & ComT)anv. Ben r.umley announces two new sizes added to the iarcia y Vega" line, the "Koosevelt" and "Koval Crown," and also advises that the "Aristocrat" size has been greatly increased. "C F. P. Carlin, local re])resentative for "Chukkers" cigarettes, Simpson, Studwell & Swick, is ])utt "(Muikkers" in all the high spots in this territory i they are being well received mg and The "Don Sebastian" (^)ueens are now being ])acked in one-fortieth ])oite nature cedar boxes at no < xlra charge, and are meeting with an increased de- ma r.d. The ( i As You TJke I1 " brand formerlv owned bv Oodt'rey S. Malm Imt now the i)roi)erty of Yahn & Mi'- Donnell, has been showing considei-able activity in this territory and sales have been showing a decided in- ci'ease. A large holiday ci-owd was in evidence at Atlan- tic City over the Decoration Day i)eriod and retailers in that resort experienced consi(lei-abI(> activity which resulted in an optimistic feeling as to business condi- tions there during the present summer season. At the Rellevue-Stratford Hotel last week, Clar- ence Thompson, manager of the cigai- stand was fea- turing a beautiful display of " Moutieello" cigars along with a splendid line of impoiled cigars which excited a good deal of favorable comment and had a favor- able reaction on the sales volume of the stand. June 15, 1932 Say You Saw It in The Tobacco World 52nd vear Do you inhale? "Why bring that up?" —the cigarette trade asks! FOR years there has been gen- erally a striking avoidance of the word "inhale" in cigarette advertising. Why? Goodness only knows! For everybody inhales — knowingly or unknowingly! Every smoker breathes in some part of the smoke he or she draws out of a cigarette. That's why it's all important to be certain that your cigarette smoke is pure and clean — to be sure that you don't inhale cer- tain impurities. Lucky Strike has dared to raise this vital question — for it has solved the problem! It gives you the protection you want . . . because certain impurities con- cealed in even the finest, mildest tobacco leaves are removed by Luckies* famous purifying proc- ess. Luckies created that process. Only Luckies have it! "Fifty million smokers can't be wrong!" So whether you in- hale knowingly or unknow- ingly — safeguard your delicate membranes! "It*s toasted" Your Throat Protection against irritation — against cough Copr.. 1932. The American Tobacra Co. 0. K. AMERICA TUNE IN ON LUCKY STRIKE— 60 modern minutes with the world's finest dance orchestras, and famous Lucky Strike news features, every Tuesday, Thursday and Saturday evening ever N. B. C. networks. 8 52nd year THE TOBACCO WORLD June 15, 1932 June 15, 1932 THE TOBACCO WORLD 52nd year 1 w i*llitlftii"j^iai.>ili: News From Congress _ 'AND Federal Departments INAL adjournment of the present session of Congress may be expected around June 20, un- der present plans of Senate and House leaders. There are a number of measures pending whicli must be acted upon before Congress can quit, not to meet again until next December, but it is well recog- nized that when Congress wants to go home it can move with amazing celerity. An indication of this was given a few days ago when the Senate, in a three-hour con- sideration of minor measures, disposed of more than one hundred bills. With the revenue revision bill out of the way and Government economy and relief programs practicallv completed, there remain only the appropriation bills for the various departments, which can be disposed of in short order. Republican members of Congress have not cared particularly when the session ended, so far as their national convention was concerned, but Democratic leaders have been anxious to get away in time to reach Chicago in time for the opening of their convention on June 27. For many members, adjournment will be a sad day, for when they return in December for the short session it will be as ' ' lame ducks. ' ' The mortality— politically speaking— among candidates for re-election will be ter- rific this year ; many who have sought renomination in the primaries already have fallen and many of those who succeed in winning the right to run again will be defeated next November. Wliatever members of Congress may have done during the session will prove "wrong" to their con- stituents, and next November will see the anomaly of the defeat, in one district, of a man who voted **aye" on some important ])ill, while in an adjoining district the electorate will reject a man who voted "no" on the same measure. Partial suspension of the antitrust laws would be authorized by legislation introduced in the Senate bv Senator Walsh (Dem.) of .Massacliusetts, under which industrial agreements regulating com[)etition which in normal times might l)e regarded as violating those stat- utes would be permitted temporarily pending a two- year Government study of their effects. The measure ])rovides for the creation of a joint ))il)artisan Congressional committee of twelve to inves- tigate the economic action of the Sherman and allied acts, which would make its report to Congress by April 1, 19'M. During the intervening i)ei-iod, formal notices of trade agreements wonld be tiled with the committee, the Federal Trade Connnission and the Department of Justice. FffOM oup Washington Bweau BZZAlbei Building As a measure of protection for industry and the public, the legislation bars mergers or consolidations of competing persons or interests, together with those abridging or curtailing accepted rights of labor, from the freedom granted by the bill. High tribute to the value of the trade and technical press of the country was paid ])y Dr. Julius Klein, Assistant Secretary of Commerce, June 5 in his weekly radio address over a coast-to-coast network of the Columbia Broadcasting System. Discussing the value of advertising in times of de- pression. Dr. Klein said : "Perhaps not all of you realize that behind the line of trade, in which advertising in the new^spapers and magazines and over the radio brings to the final user the news of new products and new services, there is a group of publications known as the business press which serves manufacturers, merchants, professional men. xVdvertising in these periodicals is directed to the buyers of machinery and equipment and raw mate- rials which go to make up the ])usiness of manufac- turing. "Likewise, the manufacturer of goods distributed to the wholesaler and merchant advertises his commodi- ties in terms of his interests; and those manufacturers and distributors serving professional and technical men again find advertising a medium of reaching their spe- cialized audiences with news of their products and services. "In these ways, there is going on daily an inter- change of ideas between trades and industries that sel- dom comes to the attention of the final customer, but which has much to do with lowering the costs of com- modities to the final consumer, since it is directed to that group of men in business who are interested to reduce the cost of production and the cost of merchan- dising." An exhaustive investigation of Government com- |)etition with private enterprise has been undertaken by a special committee of the House of Representatives, with a view to su])mitting a report and recommenda- tions at the beginning of the session next Deceml3er. The inquiry was ordered as a result of complaints that the Government, through its cafeterias, canteens, ])ost and departmental stores, was competing to an ever-increasing extent with private business. Govern- ment employees, it was (level ojjcd, can purchase at low prices not only their lunches at the Government cafe- terias, ])ut also food products, ladies' underwear, auto- {Continued on Page 17) 1 sell five times as many now ... "For every pack I used to sell I now sell five. If you ask me why, I can only tell you what smoker after smoker tells me: 'Chesterfields are milder, they taste better, they^re made right, they smoke cool and smooth. They Satisfy V w< omen don^t want a cigarette that^s ^madefor women " They want a mild cigarette, of course, but they want one with a satisfying taste, that^s not too sweet, not insipid. They know what they want and where to get it. That's why more women are chang- ing to Chesterfield every day. C> 1952, Uocnr ft Mvsts Tobacco Co. 10 52nd year THE TOBACCO WORLD June 15, 1932 UNRAVELLING THE MYSTERY Unemployed Professional Engineers Solve the Problem of Keeping Up Their Morale Under Adverse Con- ditions HE TECHNICAL Service Committee of the Engineers' CUul) of J^hihidelphia lias registered at 1317 Spruce Street the bulk of the available technical talent for the benefit of the employers of this district. The committee consists of unemployed technical men, doing this work without pay for the bene- fit of their fellow engineers. Their emplovTnent service is ottered in confidence without cost to' employer or employee. The list of 771 men on their registry covers every branch of the technical field. By uniting their efforts toward increasing business activity, it is felt that some of this widespread fear may be* supplanted by reason. A survey is being made, with the co-operation of the research committee of the State Emi)loyment Com- mission, to discover how much activity has di'opped in each class of engineering since normal times. It is hoped that a ready response will be made to the ques- tionnaire sent to each local manufacturer to find how his plant has suffered through unemployment. This information will give a basis upon which to })ush ex- pansive measures and will be treated confidentiallv. TWO-THIRDS OF AMERICA'S CIGARS MANU- FACTURED BY MACHINERY Approximately two-third*^ of America's cigars are manufactured by machinerv, according to a recent esti- mate in The Financial World. This figure, it is stated, roughly corresponds to the share of the five-cent cigar in thetotal annual out- put. Modern methods and mass production, it is fur- ther pointed out, have resulted in an improvement in the quality of the (lass A cigar, as the five-center is officially known. Machine methods of manufacture, according to experts in the industry, offer the additional advantage of giving the smoker sanitary protection as exemplified by one popular five-cent ])rand which now claims the distinction of ])eing the only cigar in the world finished under glass. SCHWARTZ CIGAR CORPORATION PAYS DIVIDEND The Bernard Schwartz (Mgar (Corporation, of De- troit, has declared a dividend of twentv-five cents a share on the no-par $2 ])ref erred cumulative stock, pay- able July 1st to stockholders of record June 20, on account of accumulated dividends, which will amount lo fifty cents a share as of Julv 1st, 1932. SCHULTE OMITS PREFERRED The Schulte (^igar Stores (Corporation has passed the (juarterly dividend of ^2 due at this time on the prel erred stock of the c(mii)any. The last dividend on tills stock was i)aid January 2, 1J);J2, and at the March meeting action on the dividend was postponed until the meeting on June 2d. LOUIS SCHRAMM RETURNS Louis Schramm, well-known imfmrter and dealer n leaf tobaccos, of New York (^ity, returned last week )n the S. S. -Ille de France" after a few weeks in Eu- rope where he attended the tobacco inscriptions at Amsterdam. 1 oi OPPORTUNITY TIME NOW FOR RETAILER ACATION time for most of the world means a fighting bass, open fairways, backwoods places where a fellow wears his old corduroys, or just the peace and quiet of staying com- fortably at home and puttering in the garden. But to the cigar retailer it means opportunity." This is the good news which Phil M. Phulofax, D. B. I., who is associated with Bayuk Cigars, Incor- porated, of Philadelphia, and whose selling tips appear regularly in the advertising columns of this magazine, writes from Anytown, U. S. A., where he is stopping on his coast-to-coast tour of observation. ''Here in Anytown, I had a long talk with Billy Keep Atem, of Up & Atem, who do a thriving business on Main Street, and Billy gave me some good thoughts on vacation cigar business. 'Some fellows,' he said, ^liave entirely the wrong slant on the summer trade' Taking a quick look at the picture, they decide that everybody will be away during the hot weather and that their cigars will slumber on the shelves until the fall trade picks up and gives them a shove.' " 'Now that,' said Billy, 'is what I call going to sleep yourself. Put your head to work instead of on the pillow and the July forecast will be more to your liking. Summer means that lots of vour customers' will be away from home, but it does not mean that they will stop smoking cigars. If a customer plans to be out of town tor several weeks he will need at least a box of his tavorites. If he will be gone for onlv a week or two. he will want to stock up, too, for he will be even less willing to take precious golf or fishing time to run to town for his indispensable smokes. And if you have ever waited patiently, rod in hand, or cranked a reel with wild excitement, you know that the thrill is in- complete without the companionship that tobacco gives, and that the old saying about solitude ought to be amended— Give me solitude and mv pet cigar. *"If he is treking to the wilds, he'll need to take his smokes in the knapsack along with the bacon and canned l)eans, l)ecause tobacco shops don't flourish in the north woods. On the other hand, if he is being cajoled to one ot those seaside resorts where the women Oik sho^y their finery before the rocking chair iurv, he ^11 be glad of the consolation of a box of cigars And it he expects to stay at home this summer, sell him a •ox to give him that vacation feeling. Anv way you looK at it, there looms a mountain of opportunity to sell by the box, and of course all of us in the business Know that our biggest profits are in box sales.' "That's Atem's attitude, and it's an easv bet that tliere won t ])e any antiquated star boarders taking np space on his shelves next September. Start sleuth- ing now and find out when the Joneses and the Browns are going away and for how long. Why, the 'glorious iMjiirth, a three-day holiday this year which means nsiung trips, cami)ing jiarties and all sorts of timely <'Xl)e(litions, is only just around the corner. Now is the time to begin your summer smokes campaign— and liere s to continued high sales throughout the hot weather!" DEISEL-WEMMER-GILBERT OMITS The Deisel-Wemmer-CJilbert (Corporation, Detroit mid J.ima, Ohio, has omitted the quarterlv dividend of twenty-five cents due at this time on the common stock. nw hojird ot directors announced that the omission was ( iR. io a desire <,h their part to conserve the com- Ijaiiy s cash. June 15, 1932 Say You Satv It in The Tobacco World 52nd year 11 Trade Notes Harry I. Shacklett, representing the "G & S" l)rand and the "Carlton" brand of A. Gutierrez, who has been confined to his home in the Ambassador Apartments at Twenty-first and Walnut Streets, for a long period on account of illness, returned to his home in Virginia on ^iay 27tli, bearing the good wishes of his many friends for a speedy recovery. J. Merriam, of M. Bustillo & Merriam, Tampa manufacturers of the "Espadilla" brand, was in Phil- adelphia last week and called on Yalm & McDonnell, local distributors. My. Rosenthal, of Gonzalez & Sanchez, Tampa manufacturers of the "G & S" brand, was in town last week introducing their new brand "D-Good" which retails at five cents. I. B. White, manager of the cigar department of John Wagner & Sons, announces that three new sizes have been added to their stock of "Don Sebastian" cigars, "Edison," "Leaders" and "Petit Panetelas*' retailing at ten cents. These cigars are packed with cedar sheets between each layer of cigai's and no cel- lophane wrappers, as it is the custom with the Arango y Arango factory to put no cellophane on their fine cigars unless specifically rcHpiested by the customer. G. B. Saunders, factory rej)resentative of the Porto Kican American Tobacco Companv, has been -pending some time in I^hiladelphia promoting the new size of "El Toro" cigar, and replacing the old size with the new perfecto size among the retailers, and the new size is also in a much more attractive pack- age. Mr. Saunders has been working through Yahn & McDonnell, local distributors of the "El Toro l)rand. ) » Amedee Levie, western factory representative of George Zitferblatt «5c Company, has been working dur- ing the past week with the Peter Hauptmann Tobacco Company, of St. Louis, who have recentlv taken on the "Habanello" lirand for distribution in that territorv. A number of new accounts have been opened and the "Habanello" is being well received. Bernard ^fevers, of the "Habanello" factory, is doing some good work with v. H. Stallman & Sons, in York, Pa., and also >I)ent several days in Lancaster, with Cooper and Com- pany, "Habanello" distributor in that territorv. Ben Lumley, the "Garcia y Vega" ambassador, has just returned from a trip to Altoona where he has heen putting in a week campaigning on the "Gnrcia y Vega" brand, through the Heid Tobacco Companv, with good success. The Garcia v Vega is l)eing well received in that territory and a gratifying numlier of new placements were made. Last week Mr. Lumley was campaigning in Phila- delphia on "(iarcia & Vega," through John AVagner '■v Sons, importers and distributors, 2:V.] Dock Street, and also working on the Wagner brand, "Monticello," which IS showing splendid demand. The "Monticello" hiand has just ;idded a new size, "Longfellow," which i>^ being well received. '-OADJ up WITU CiCARS "^ " FCmA the ^ TH SATUPDAy. Three gionousmmMgoing owoydays. '0 «»/£« n/ »JusT A minute: Un£EOA Lot OF Your frtwiTE CIGARS 4mnju£Njw»«nTof Xi VURS MOST CUM HoUOAY. SAFELY U^^^^^^\ , SANELV l^\iN^^^n^\ SATlSFAaOftlLV 1 WITH A BOX or I YOUR rAvoftrre CIO AR • \^^^^' PHIL M. PHULOFAX. *D. B. I. (the relailer's friend) says: ^^Vlnytitne for others is haiitime for you^^ Excuse me if I revamp that old axiom about making hay while the sun shines. But who- ever invented the expression must have been thinking of holidays and the opportuni- ties they offer cigar merchants. This year the big mid-summer holiday should be more fruit- ful than usual — for most people will be "shooting the works" three days running. . . . And the retailer who doesn't put on a stiff drive for box sales for the occasion is asleep, indifferent, extinct — or something — from the collar northward. I say prepare to get out those box goods . . . "Twen- tieths," "Fortieths" and "Five- packs." Stack 'em up on top of the case. Have some of 'em all ready wrapped. Put some "Special" packages on a small stand near the door. Make up a timely window display. Dress up the store, inside and outside, with bunting . . . let it register the spirit of holi- day, recreation and happiness — toward which "smokes" con- tribute an important part. Get up some signs. To help you I've turned ad- writer. Even if you haven't any more artistic talent than a flagpole painter, you can letter a few buying urges to look some- thing like the suggestions I'm giving you at the top of this page. Put up the signs and dis- plays and start working per- sonally on your customers at least a week before Saturday. July 2nd. The same general sales-talk and other sugges- tions I gave you a month ago for Decoration Day business, fit Fourth-of-July selling ef- forts. Look 'em up in this magazine. The pessimists' arguments about summer holidays mean- ing dull business because of people going away, is all bosh. I say smokers will smoke whether they're at home or traveling; and in the latter case the thing to do is to sell 'em their supply of cigars BEFORE they go away. Make your customers feel that you, who serve them during stay-at-home periods, are just as much entitled to supply their smoke-needs while they're on the go. (7^. Associated with BAYUK CIGARS, Inc. Philadelphia Makers of fine cigars since 1897 P. S.— Cigar popularity is on the rise. What particular selling ideas are you using? How do you go after vacation and summer-holiday busi- ness? Exchange ycui< ideas for the ideas other retailers are constantly transmitting to you through my pages. Send in your suggestions- in your own language; I'll dress it up fcr pub!icr.Mon. BAYUK BRANDS BUIID BUSINESS BAYUK PHILADELPHIA CIGAR (BAYUK "PHILLIES") BAYUK HAVANA RIBBON PRINCE HAMLET BAYUK MAPACUBA CHARLES THOMSON Listen in— and tell others to listen in on ihe "Bayuk Stag Party" over WJZ and network, Sunday evenings. 52nd yoar THE TOBACCO WORLD June 15, 1932 RETAIL STORE PROBLEMS So many persons are imaivare of the many aids to hiisiness which have been carefully prepared by the United States Government, and so many of those ivho are aivare of these facilities fail to take advantage of them, that tve are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Ilauscn.) RETAIL STORE PLANNING {Continued from previous Issue) Introduction S TIIEKK in proscnt-day retailing a trend toward overemphasis of customer service! AVitliin the past few years the retail merchant has ])een trying to adjust operating expenses to lower lu'ice levels. At the same time the retail field has become more highly competitive, and numv new plans have been devised for the attraction of trade. One logical result is a tendency to give costly service to the customer, which may be' carried to the" point of increasing the ratio of operating expenses to sales. A subject of vital interest to retailers is this: AVhat are the best managed stores doing to increase sales without correspondingly increasing overhead ex- penses? In contrast to uni)i*ofitable extremes in custo- mer service, attractive display of goods and scientific location of related dei)artments will have a material effect on sak's. Other satisfactory methods will be suggested to the individual merchant through intensive study of the layout of the store. The relocating of de- pailments is an exam])le of a possible improvement which may cost little or nothing, while other advanta- geous changes involve the purchase of exi)ensive new e(|uipment. It is likely that no two independent stores carry exactly the same lines of merchandise, and a duplication of trade conditions is i)racticallv impos- sible. Therefore, in api)lying suggestions for the im- provement of store layout, the merchant will naturallv be guided by conditions ])eculiar to his own business and will spend only the amouni of money for which he wdl be (linvtly compensated i)y a proportionate in- ci'ease in sales. The imrpose of this studv is not to settle anv indi- vidual merchant's layout i)rol:h'm, but to emphasize the impoi'taiice f>f eareful i)lai'ning in the store and to sivugcsl eeitaiii factors that every mereliant will tind of i)roli1able interest in ])lanning his store layout. Planning the Building Store Front By ''putting up a good front" the retailer insi)ires maiiy a i)assei--by with a desire to become better ac- (piainted with his merchandise. The external features of the stole intimate to the ])ublic the nature of the ac- tivity within. For that reason the store front should, in so far as possil)U.^ suggest tlie highest attainment in the j)ai-ticular line of business conducted. Owing to the gi-eat variety of meivhandise which it proposes to sell, the depai'tment store is unable to carry out this i1is of smoking, as did the Englisli men of fashion in the davs of (bieen Elizabeth. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES ■ ••• • •«#* Y. Y. JESSE A. BLOCH. Wheeling. W. Va. CHARLES J. EISENLOHR. Philadelphia. Pa. JULIUS LICHTENSTEIN. New York, N. Y. . WILLIAM BEST, New York, N. Y MAJ. GEORGE W. HILL, New York, N. GEORGE H. HUMMELL, New York, N. H. H. SHELTON, Washington, D. C WILLIAM T. REED, Richmond, Va HARVEY L. HIRST, Philadelphia, Pa ASA LEMLEIN, .\ew York, N. Y CHARLES DUSHKIND. New York, N. Y Headquarters, 341 Madison Ave., .Cha President Ex-Preiident Vice-Preiident rman Executive Committee Vice- President Vice-President Vice- President Vice-President Vice-President Treasurer Counsel and Managing Director New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati. Ohio ... President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer \VM. S. GOLDENBUKG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. \ND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J ALBERT FREKMAN, New York, N. Y IRVE^r .M. MOSS. 'riiiit..n, \. J ABE BROWN, 180 Grumman Ave., Newark, N. J. President ...First Vice-President . Seciiiul Vice- President Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE A.SA LEMLEIN President SAMUEL WASSER.M A N Vice-President 14 52nd year THE TOBACCO WORLD June 15, 1932 RETAIL STORE PROBLEMS {Continued from Page 12) Store Interior The inside appearance of a carefully planned store can be made to carry out the favorable impression created by a well-considered exterior. To the majority of people the most elaborate effect may not be so pleas- ing as harmonious simplicity and cleanliness. The general color scheme, the lighcing, and the right treat- ment of lloors, walls, and ceiling, are important con- siderations entering into the production of an attrac- tive setting which will properly accentuate the mer- chandise display. 8uccesstul retailing in a store of many depart- ments IS greatly dependent upon the main-tioor ex- hibit. An aimless shopper wiMidering in for a casual inspection of merchandise may become a valued custo- mer as a result of efficiency in main-tloor lavout If a custonier goes beyond the lirst lloor it is usually to examine some dehnite class of merchandise on one of the upper Moors, or perhaps an advertised bargain to be found in the basement. if^^^ i"^^' ^* '* bargain basement supplementary to the hrst floor is an outgrowth of the mam-floor bargain table and has gained m popularity during the past few years in communities of sufficiently diverse population 10 make it practical. Experienced merchants have expressed the opinion that people coming primarily for bargains are not, as a rule, good prospective purchasers of other goods and that too much display of bargains on the main Hoor tends to distract potential purchasers of merchandise in regular stock. With a proper understanding of the peculiariUes of his community, the retailer is able to choose wisely between the mam-tioor bargain table and the bargain basement. In any case, all details of ar- rangement which influence customers to circulate freely through the store, with the greatest possible variety ot tempting merchandise in attractive display, are worthy of the retailer's best attention. For instance, unless restricted by city ordinance, the stairways can be so placed that patrons must cross the lirst Moor in order to reach the basement; but a merchant may lind mat in his particular business it is more profitable to avoid the possibility of having bargain hunters inter- lere with the convenience of otl>er customers. He may thereiore, prefer to locate the stairway and elevators to the haseinent near a main-floor entrance, or even to provide a street entrance to the bargain basement. It has been found profitable to give careful con- sideration also to the proper placing of elevators lead- ing to the upper floors. The merchant must weigh the possible advantages and disadvantages of a location tljat IS ijrimarily tor convenience and one which tends to greater circulation of i)rospective purchasers. Ele- vators grouped at some distance from the entrances serve best to distribute traflic throughout the store since the patron who crosses the main floor to enter the elevatcjr must also, as a rule, move past considerable upper-floor merchandise dispjr.v before finding the ar- ticle originally sought. Though it is doubtless impossil)le to introduce sug- gestions with regard lo efficient interior store lighting great emijliasis must be placed on its importance What constitutes proper store lighting would perhaps require as many answers as there are stores, l)ut in all cases it is necessary that the lighting :)e i^leasing to the custo- mer who is entering the building, properly shaded to display the goods to advantage, yet sufficient to enable a piircjiaser to match colored merchandise. Everything else being equal, a retailer with a well-lighted store will undoubtedly do more business than his neighbor with a poorly lighted store. ^^_ Location of Selling Departments Commu nity Preference The object of up-to-date store planning is to pro- vide satistactory service to the community at reason- able proht to the retailer. It follows that the efficient store manager will direct his best effort toward havinjr no department wliich does not bear its proportionate share ot the general expense and show a profit at the end ot the year. Weakness in any one department can sometiines be attributed to its improper location in the store. Broadly speaking, there are two important fac- tors to consider m determining the best location for the various departments— type of customer and class of nierchandise. In other words, the progressive retailer tmds out what his community will buy and then makes It as convenient as possible for the community to pur- chase from him. l^^or purposes of comparison, com- munities may be classified as w^ealthy or poor; city suburban, or rural; conservative or progressive'- min- ing or agrieultural, and so on; and one important task ot the retailer is to arrange his merchandise to suit the community preference. Classification of Merchandise The store of many departments will have for sale 1) merchandise which the prospective customer needs (2) articles which he wants, (3) other articles which he may be induced to want. Obviously, ^vhat is a luxury :n one community may be considered a necessity in another; therefore it is practically impossible to list specific articles of merchandise which may be said to l)elong to one class. Again, each class may be sub- divided into fast or slow moving goods, high or low iniced, bulky or small, masculine or feminine choices, dark or colorful, and so on. Though local conditions may determine the class to which each article belongs, certain general principles can be profitably followed in choosing the location in the store for each class. Reports agree that in stores ot more than one rtoor only articles of moderate size and pleasing appearance should be displayed on the hrst floor, owing to the high value of the main-floor space. In all stores there are some lines which will sell taster than others. The modern method is to help out the sale of slow-moving stock by placing the quick- se ing goods toward the rear of the store and the slow- selling articles of merchandise where the greatest num- l)er of prospective customers will see them in passing. Characteristics of Customers Merchandise which the customer will buy on the impulse of the moment, if tlie article happens to catch his eye, will naturally be located on the main floor along the regular lines of traffic, w^here they will attract the most attention. One interesting example of how a slight change in the aijpearance of a department may promptly increase its iKjpularity was given by a merchant who stated that, as an experiment, two beautiful lamps were brought down from the lamp section and placed on the glass top ot a counter containing women's neckwear. Within three months it was decided to double the amount of floor space which for two years previous had proved sufTicient for that particular section. The added attrac- tion provided l>y the tw^o lamps appeared to be the only explanation of the sudden increase in sales. (Continued on Page 18) *«^ June 15, 1932 THE TOBACCO WORLD A. C. M. ASKS ACTION ON PRICE MAINTENANCE AST WEEK, John H. Days, president of the Associated Cigar Manufacturers and Leaf To- ))acco dealers, and on behalf of the association appealed to United States Senator Arthur Capper to use every effort to obtain consideration for the Capper-Kelly resale price maintenance ])ill before the present session of Congress adjourns. In his letter to Senator Capper Mr. Duys states: "On behalf of the Associated Cigar Manufacturers and Leaf Tobacco Dealers, of which I have the honor of l)eing president, I desire to urge you to use your best efforts to secure consideration before this session of Congress adjourns of the so-called Capper-Kelly hon- est merchandising ])ill (S, 97). ''This bill applies only to merchandise identified by trade-mark or in some other manner and does not a])ply to ordinary staple products which are not iden- tified. "Contrary to the impression in certain quarters. It should be understood that the bill does not make com- ])ulsory the maintenance of prices fixed by the manu- facturer unless pursuant to a contract between the producer and his distributors; in other words, manu- facturers, even though their products l)e trade-marked or identified, would not be obliged to take advantage of the proposed law and all contracts entered into between themselves and their distributors would be entirely vol- untarv. "There can be no doul)t that one of the great evils of the present time is the i)redatory price-cutting which is pursued by a certain class of merchants who are practically the only opponents of the Capper-Kelly l)ill. If contracts to maintain resale prices should })e legal- ized, manufacturers desiring to protect their distribu- tors would be al)le to insure to the latter retisonable profits, while fair competition in the sale of their j)rod- iicts would keei) [jrices down to a reasonable level and furnish to manufacturers an incentive to build up quality. "The price-cutter of today makes up any losses he may incur through cut prices on widely known identi- fied i)roducts by excessive profits on goods with which the public is less familiar. The rapid concentration of retail merchandising in the hands of a few great com- binations is to be credited in considerable measure to their cut price tactics as applied to goods of known quality and value. Using these as 'bargain bait,' they have been able to persuade unthinking buyers that all other goods are sold at similar reductions. "Thousands of small merchants throughout the country have been driven out of business by the ju-ice cutters, thus contributing in no small degree to the present financial depression. It is certainly demoraliz- ing to any trade when merchants are no longer able to operate their indei)endent stores, liut must join the already overcrowded ranks of clerks and salesmen and drift into the ever-increasing army of unemployed. "If through the exercise of your influence you can assist in b.ringing about the passage of the honest mer- chandising bill, you will earn the th.anks of independent lnisiness men and those depending upon them in every part of this broad country and assist materially in \\m ' • • restoration of prosperity." 52nd year lo ITALIAN TOBACCO REGIE TAKES OFFICES The Italian Tol)acco Regie, the official Italian State tobacco monopoly in the United States, has leased more than 2()(M) s ])er cent, preferred stock, as com pared with thirty cents a share on the combinetl pre- ferred and c(mimon stocks in the March (piarter of last year. CHESTERFIELD RENEWS STELLAR SERIES Kene\yals of contracts presenting Kuth Ktting, the Hoswell Sisters, Alex (Jrav, Xorman Brokenshire and Xat Shilkret's Orchestra in "Music That Satisfies" over the WABC-Columbia netwoik is announced by the Liggett & Mvei's Tobacco Company. The series, of- fered every night except Sunday at 10 W M., Fastern Daylight Saving Time, will retain its current scIhmIuK'. GORLITZER FILES PETITION Benjamin (loilitzer, cigar dealer of 247 Park Ave- nue, Xew York City, filed a volmitarv petition in bank- ruptcy on Monday in the Fnited States District Court for that district. Liabilities wi'ie listed as $11,411, and assets $n7.'U. HARRIS ON WESTERN TRIP A. llai'iis, head of the private brand departmenf of the American Tobacco Comj)aii.\, and sales manager for the ".lohnnie Walkei-" cigarette, left last week for a tri]) through the Middle West, covering Illinois, ( )hio, Micliiuan and Wisconsin. 16 52nd year THE TOBACCO WORLD June 15, 1932 CORRECTION IN APRIL 1 TOBACCO REPORT HE UNITED STATES Department of Agri- culture, Tobacco Section, reports in checking over the April 1, 19o2, tobacco stocks report that 3,917,CK)0 pounds of tobacco was incor- rectly reported as One-Sucker, U. S. Type 35, when it should have been rei)orted as Southern Maryland, U. S. Type 32. The detailed rejjort by groups of grades of these two types should read as follows: U. S. Type 32— Southern Maryland Group B. . . . C ^ • • • • ^-J • • « • ^> • . . . Total . New Crop Unstcninied Stcninied 1000 lbs. 1000 lbs. 1,386 57 • • • ■ • • • « 7,035 9,238 1,548 2f)8 Old Crop Unsteimued Stemmed 1000 lbs. 1000 lbs. 1 3 1 •••• ••»• •••> •••• A .... £. . . . X.... ^-5 • • • • Y 18,111 1,443 U. S. Type 35- 1,456 .... 17,325 12,147 12,152 769 1,091 1 116 4 1 -One Sucker. • ••• •••• 2 1 44 ^ • • . . • ••• •■•> April 1 Ciroup Totals 1000 lbs. 7,035 10,625 1,609 22 268 19,559 .... 1,45G 1 17,329 • • • • A.t^fA.tj L 12,270 769 • ••• .... •••. J.,UtyX Total. 44,940 117 48 1 45,106 Attention is also called to an error in the January 1, 1932, report. Due to an error in tabulation the stocks of the A group of Type 12, Eastern North (Caro- lina Flue-cured, weie rejiorted as 1,223,(M)() ])ounds. The correct iigure for stocks of the A group of Tvpe 12 on January 1, 1932, is 200,000 ])ounds.' The correct fig- ure for stocks of the B group of Tvpo 12 on January 1, 1932, is 71,868,(K)0 pounds. UNITED CIGAR STORE EARNINGS United Cigar Stores Companv and subsidiaries re- port for 1931 net profit of $288,260 after depreciation, amortization, interest, etc., as compared with $1,551,980 in 1930. MATCH COMPANY ASSETS (Continued from Page 3) Tn her action, Mrs. Bramson states that Lee, Hig- ginson & (V)mpany gave her to understand that the International Match Corporation would be managed by a ])oard of directors predominantly composed of American business executives, whereas, she contends, the American representatives on that board had pre- viously abdicated a large i)art of their functions to the late Ivai- Kreuger. Kreuger, president of the com- pany, committed suicide in I'aris early this year, and the (h'bacle of his companies, including Kreuger & Toll and the Atliliated International Match Corporation, then became known. Victor House, counsel for Mrs. Bramson, stated today that the action against (Juarantv was instituted solely becnuse Mis. Bramson had purchased her bond through that company. He added that it was not yet clear what agreement, (Guaranty, along with other New York bjinks, had with Lee, Hi'gginson & Company in their underwriting of International Match Corporation bonds. The jiresent suit, he said, is designed to settle that point. A. C. M. OFFICERS RE-ELECTED T a recent meeting of the board of directors of the Associated Cigar Manufacturers and Leaf Tobacco Dealers, held in the offices of H. Duys & (Company, New York City, officers of the as- sociation were re-elected to retain their present posts for another twelve months. Important matters were discussed and it was defi- nitely decided not to hold the regular annual conven- tion this year due to conditions throughout the indus- try. WHITE OWL PRODUCTION 425,000,000 An advertisement of the General Cigar Company points out the fact that the first vear's production of ''White Owl" cigars after the reduction in price from seven cents to five cents was more than 425,000,000 cigars. These figures are not astonishing when it is recalled that absolutely the same cigar sold for seven cents and ui) for more than fourteen years, and natu- rally, when the price was leduced to five cents, the con- sumer was quick to take advantage of it. The "White Owl" cigar today enjoys an enviable position in the field of popularity among the five-cent cigars. TOBACCO TRADE CONFERENCE (Continued from Page 3) ing a financial or professional interest in said commod- itie-4 and to reform abuses relative thereto, and to se- cuie freedom from unjust or unlawful exactions, to diftuse accurate and reliable information as to the standing of merchants and other matters, to procure uniformity and certainty in the customs and usages ol trade and commerce in tobacco and tobacco prod- ucts and of those engaged in the business relating to said i)roducts, and of those having a financial or pro- fessional interest in said products; and to settle and adjust ditferences between its members and others, and to promote a more enlarged and friendlv inter- com se among persons, firms and corporations engaged in said business." The following statement was authorized by the meeting: *'The fact that representatives of a number ot existing organizations have brought about the incor- l)oration of the Tobacco Trade (Conference, Inc., is com- l»lete evidence that there will be no conflict in motives, purposes, plans or prol)lems ])etween the new organiza- tion and the existing organizations. It is felt that a co-ordination of the interests of those in Tobacco Trade (Conference, Inc., will result in a long-looked-for and much desired forward step in the correcting of the abuses which are unfortunate, but so prevalent in every sphere of the tobacco trade. '*We invite the co-operation of all dealers in to- bacco products, who are urged to join as affiliated mem- bers The dues, the only obligation, are .$(> annuallv. U e teel that we can accomplish manv things which will make for betterment of conditions in the entire in- dustry. ''For further information with respect to the or- ganization, iiKpiiry should be made to Jonas J. Ollen- dorff, secretary, 19 West Forty-fourth Street, New York City." June 15, 1932 Say You Saw It in The Tobacco World 52nd vear 17 EUROPEAN TOBACCO PRODUCTION REDUCED HE PRODUCTION of tobacco in Europe, ex- cluding Russia, in 1931 was about 14 per cent, less than that of the previous year, according to J. B. Hutson, tobacco specialist in Europe for the Foreign Agricultural Service. The tobacco crops of Italy, Rumania and Greece were reduced sub- stantially, while in most other countries production was increased. However, information available to date in- dicates that the decline in consumption in 1931 in conti- nental Europe, excluding Russia, was about as great as the decline in production and there are no recent devel- opments that indicate an immediate improvement in consumption. The 1931 crop of dark air-cured tobacco in Europe, excluding Russia, was approxiately 300 million pounds, compared wdth 314 million pounds in 1930. The produc- tion of Oriental tobacco in Greece, Turkey and Bulgaria in 1931 was approximately 255 million pounds, com- pared with 305 million pounds in 1930. The 1931 crop of semi-oriental tobacco grown largely in Rumania, Yugoslavia and South Italy was approximately 95 mil- lion pounds, compared with 140 million pounds the pre- vious year. The acreage of Makhorka tobacco in Russia in 1931 is reported to have been almost twice that of the pre- vious year. This is a dark, strong type used largely in smoking mixtures for Russian peasants. The Rus- sian acreage of oriental tobacco in 1931 is reported to have been 35 per cent, larger than the previous year. The combined reported acreage of the two types in Rus- sia in 1931 was approximately 60 per cent! of that for the remainder of Europe. In recent years most of the Russian crop has l)een consumed in domestic products. However, in both 1929 and 1930 German imports from Russia were around four million pounds. Small quan- tities were also imported by several other P]uropean countries. The reduced crop in Southern Europe is not likely to result in any increase in the takings of tobacco from the United States. In fact, there may be some further decline in the consumption of the fire-cured tobacco. In the countries in which production was reduced, stocks of domestic tobacco are reported still to be large and in several countries the consumption of mixtures in which tobacco from the United States is used has de- clined. However, the consumption of the fine-cured types in the United Kingdom, the most important European importing country, has held up well during the past year and no marked decline in the consumption of these types is expected. Of the European grown tobacco, the dark, air- cured types of Italy, Hungary, Germany, France, Spain, Czechoslovakia and Poland compete most di- rectly with tobacco from the United States. In the case of all this tobacco except that grown in Hungary the competition is within the country in which the tobacco is produced rather than on export markets. In Italy reports indicate that the 1931 crop of dark air-cured tobacco was less than half of that of 1930. However, the dark Italian grown types ent<'r but little into export trade and because of the large crop of 19:)0, stocks are believed to be large enough for domestic re- quirements. Exports of dark fire-cured to])acco to Italy have been small in recent years. In most of the other countries just mentioned ])ro- duction was increased in 1931. The Hungarian croj) in 1931 was about 15 per cent, larger than tliat of the pre vious year. Some Hungarian tobacco is used in France, Belgium, The Netherlands, and Germany in smoking ^ltLiJiiLi'IM'ILili|»Ui!LViilLViiiLV!i|iVJ'g7riD^^ Classified Column The rate for this column is three cents (3c.) a word, with \ 5 strictly in advance a minimum charge of seventy-five cents (75c ) payable strictly in advance. FOR SALE 1«0R SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide, Metals Coating Company of America, 495 North Third Street. Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168. Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco niel(o%v and smooth In character and Impart a most palatable flavor FUVORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands ABTUN. ABOMATIZEI. BOX FLAVORS. PASTE SWEETENERS FRIES a BRO., 02 Reade Street. New York mixtures in wliieli iiro-cured or air-ciirod toljaeco from the United States is also used and tliere prohahly will be larger offerings of Hungarian tohaceo in these eoun- tri6s. Tlie domestic (•roi)s which are also used partlv in these mixtures were larger in (lerniany and France and were reduced but little in l^elgium. Production was also increased in Poland and rzochoslovakia and re- duced only moderately in S[)ain. In all of these coun- tries except Hungary some tire-cured or dark air-cured tobacco from the I'niled States is used in smoking mix- tures in which domestic tobacco is also used. Tn these countries with larger domestic crops there may be some further displacement of the dark tire-cured types from the United States. News from Congress (Continued from page 8) mol)ile tires, i-adio sets, shoes, and prai'tically anything else they needed. It was contended thai the operation of these activities otTered cut-j)rice coniiietition whiclj pi'ivate businesses cannot meet and that the (lovern- ment has no right to vuivv into coiniu'tition with busi- ness houses which Dav lieavv taxes. One of tlie sources of com])laint has been the sale of cigarettes and tobacco. Army and Xavy ('ant<'en.^, it is charged, sell these pi-oducts at about half the usual price, through the combination of wholesale purchases and freedom from Federal tax. In many instances, it was alleged, cigar<'11<'s so ])urchased by enlisted per- sonnel are sold or given to civilians. 18 52nd year Say You Saw It in The Tobacco World June 15, 103i> AUGUST 1, 1932 LIBRARY Tobacco MercliaiiLs' Association Registration Bureau, nk w^>^rk" ri^* Schedule of Rates for Trade-Mark Services Effective April 1, 1916. lifgi.stiaLiuii, (see Nole A), $5.00 2St^aroh, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A -An allowance of %2 will be made to memberi of the Tobacco Mer- chants Association on each registration. Note B— II , report on a search of a title necet.aitatea the reporting of more M* n '*,",.^^' '"■'.*?• ^"' .'*" *^^" twenty one (21). an additional charge of One uoliar Jl 00) will be made If it necessitates the reporting of more than twenty /2LV".'. ^"* '*■•,' ^^'" thirty-op- (31), an additional charge of Two Dollars J / will be made and su an aoditional charge of One Dollar ($1.00) will be made for rv^rv ten HOi additional titles nrcessarily reported. REGISTRATION OLD SPAIN:— 46,042. For cigars only Cigars, Inc., Dayton, Ohio. May 31, 1932. Schaefer TRANSFERS RED JACKET: — (Connorton's Directory), l-'or smoking tobacco. Registered 1899, by Wesson Bros., VVingo, Ky. Transferred by Mrs. I. A. Wesson, administratrix of Estate of Dr. I. A. Wesson, to B. Payn'.s Son's Tobacco Co.. Albany, N. Y., May 27, 1932 CRIMSON COACH:— 45,998 (T. M. A.). For all tobacco products. Registered March 2, 1932, by Crimson Coach Products Company, Ft. Wayne. Ind. Transferred to Crimson Coach, Incorporated. Toledo, Ohio, June 3, 1932. NORVELLA:— 30,392 (United States Tobacco Journal). For cigars cigarettes, cheroots and tobacco. Registered Tune 12, 1905 by Heywood, Strasser & Voigt Litho. Co.. Xew York N Y Through mesne transfers acquired by Philip Luber, Phiiadefphia' i^a., June 3, 1932. ST. ELMO:— 26,805 (United States Tobacco Journal). For cigars cigarettes and cheroots. Registered March 18, 1903, by St. Elmo Cigar Co.. Los Angeles, Calif. Through mesne transfers ac<|uired by Louis Kanter, Los Angeles. Calif., and re-transferred to Fred. L. Druck & Co., Dallastown, Pa.. January 13, 1932. CANCELLED REGISTRATION G. A. KOHLER & CO'S.:-46,019. For all tobacco products. Regis- tered .April 4. 1932, by .American Colortype Co., New York, N. Y. RADIO INCREASE DURING APRIL XI^KXDITURES for advt*rtisiii<^ ])y the tobacco industry in national and farm magazines dur- inji^May and over national radio networks duriii^^ A})ril continnc^l to show substantial Kains ov ' ■■ m^^m* ■i B^^ BB"^^ BH ■ -Bll— ^Bt"" — <|l*^BB^-^»» '■ WB^^BB' lllllllllllllllllll UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. V Fashion Note for the well-dressed cigar: After all [nothing satisfies like a good cigar^^ • WOODEN BOX • The longstanding pork and beans alliance, the famous Smith Brothers partnership, the life-long friendship be- tween Tom and Jerry — none of these is more inevitable or more lasting than the fondness of a fine, mellow cigar for a fragrant wooden box. WHEN BUYING CIGARS Remember that Regardless of Price THE BEST CIGARS ARE PAOICD IN WOODEN BOXES sl^^^4tf^^t^?^'l'AAWAM^^^ Volume 52 THE TOBACCO WORLD Number 15 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22. 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, AUGUST 1, 1932 Foreign $3.50 N. A. T. D. SECRETARY EXPLAINS AIMS OF ASSOCIATION mmmm E ^re in receipt of the following communica- LtaW tions from the secretary of the recently organ- ized National Association of Tobacco Distrib- utors, who explains that the questions treated in the following letters he believes are in the minds of a good many other firms who find themselves in a simi- lar situation. The name of the firm writing to Mr. Jacobowitz is being withheld for obvious reasons, but we are glad to publish the letter and ^Ir. Jacobowitz 's reply so that others may have the benefit of his explanation. Copy of letter received from A. B. Mr. Max Jacobowitz, Sec'y. 84 Montgomery St., Jersey City, N. J. Dear Sir: I have before me your circular letter of the 14th, enclosing application for membership in the National Association of Tobacco Distributors. We were not represented at the meetings held in New York and Cleveland, because, in the first place, it was not entirely convenient to be away at that time, and in the second place, we prefer to stand on the side lines for the time being having seen the rise and fall of so many tobacco jobber's associations, which, so far as we can recall, fail utterly in its purpose to assist the distributors of tobacco products. The National Association dues of $100.00 per year would be a very small price to pay if the Association can really do anything to correct the abuses that are sapping the lives of the tobacco distributors at the present time. Considering the conditions prevailing here locally, I fail to see how a membership in your Association could in any way correct these conditions, and while we would be very glad indeed to co-operate to the full- est extent to bring about better conditions, we prefer to withhold the application until we know something more about the scope and aims of the Association. I am, with best wishes for vour success. Very truly vours, (Signed) A. B. Copy of reply by Max Jacobowitz, secretary. Mr. A. B., Dear Sir: I am in receipt of your letter of the 20th and due to the importance of the thoughts you conveyed, I deemed it expedient to reply at once, in order to clar- ify the points at issue. With that thought in mind, permit me to say that I appreciate your logic and heartily agree with you when you state that many organizations of tobacco (Continued on Page 18) FACTORY FOR HAVANA CIGARS IN TRENTON RENTON, N. J., will become a manufacturing center for internationally famous cigars, it be- came known last week when it was announced that four leading cigarnuxkers would move their factories to Trenton from Havana, Cuba. The move, it was announced, would make possible a reduc- tion of approximately 50 per cent, in the retail prices of these high-grade products. The four companies concerned are: Henry Clay and Bock & Company, Ltd., The Havana Cigar and To- bacco Factories, Ltd., Havana Commercial Company and H. de Cabanas y Carbajal ; which make such world famous cigars as "La Corona," "Cabanas," "Henry Clay," "Villar," "Bock," "Manuel Garcia Alonso" and "La Meridiana." The new factory for making these cigars is under construction, it was announced today bv L. S. Houston, chairman of the Henry Clay and Bock & Company, Ltd., and it is expected that manufacturing will begin in the fall. The new factory, to include every modern inno- vation and sanitary improvement, will carrv out a Spanish motif in keeping with the character of the products to be manufactured in it. In addition to the employment given during its construction, the new l)lant is designed for a force of approximately 1000 workers. Chainuan*s Statement In an earlier statement announcing this move, Mr. Houston said that the preparation of the tobacco for the cigars will be continued in Havana, and that the new plant at Trenton will be equipped to produce arti- ficially the favorable atmospheric condition existing naturally in Havana. He further stated that as a re- sult of tliis move, Trenton will become the center for manufacturing internationally known cigars, which have been the favorites of smokers the world over for from 75 to 100 years. In anticipation of increased sales at the lower prices, Mr. Houston said, the companv has planned to increase their Cuban plantings during this year to 575 acres, representing a direct expenditure of about .$800,000 and giving employment to hundreds of Cuban families, and that further increases in acre- age are contemplated for 1933. Trenton Found to Be Ideal The decision of these companies to manufacture their cigars in the United States caused an investiga- tion to be made of various cities best suited for their manufacture. The results of the investigation sliowed the City of Trenton to be an ideal manufacturing center with an abundance of skilled labor. Inquiries were then made through the usual chan- nels for a piece of local property suitably located with respect to the proximity of the workers. * It was finally (Continued on page 15) 52nd year THE TOBACCO WORLD August 1, 1932 BAYUK EMPLOYEES HOLD OUTING HE Sunshine Club, a welfare organization com- posed of employees of Bayuk Cigars, Inc., held their annual outing at Woodside Park on Saturday, July 23d, with between six and seven hundred employees and their families in attendance. The day was favored with ideal weather and a glorious time was enjoyed by all those in attendance. Various sorts of games and contests were arranged by the program committee with appropriate prizes awarded to the winners. One feature of the day was a baseball game ar- ranged between the married men and the single men, with the single men defeating tlie married men by the score of five to one. H. E. Johnson, Bayuk salesman, formerly sta- tioned at Mount Vernon, Ohio, met with a painful acci- dent last week when he suffered a fall down an elevator shaft and was severely bruised and shaken-up. He is expected, however, to be able to resume his duties again within a few days. Roy Barkman, Bayuk territorial manager for Mich- igan, in a recent trip through the upper peninsular dis- trict of that State, obtained some splendid new place- ments for the Bayuk line. The Hoffman Cigar C^ompany, Norfolk, Va., Bayuk distributor, has recently had the assistance of G. B. Branzell, Bayuk territorial manager, and pro- moted a very successful drive on ''Havana Ribbon" and ''Mapacuba" cigars, which are exceedingly popu- lar in that district. The Neudecker Tobacco Company, Baltimoie, :vld., Bayuk distributors, were recently aided by George L. McGreevy, Bayuk salesman, in expanding the distribu- tion and sale of Bayuk cigars in that territory. F. J. Horning, Bayuk salesman, has just completed a very successful campaign on Bayuk products in con- nection with W. C. Knack, of Dixon, III, Bayuk distrib- utor for that territory. WEBSTER EISENLOHR REPORTS Webster, P]isenlohr, Incorporated, reports for the quarter ended June 30, a deficit of $145,070, against a deficit of $126,726 in the same period of last year. For the first half year, there was a deficit of $180,- 017 as compared with a deficit of $233,254 in the cor- responding period a year ago. Trade Notes Congressman Harry Haines, well-known York County cigar manufacturer, was a recent visitor in town calling on the trade. Karl Cuesta, accompanied by his factory repre- sentative, was as a recent visitor in town calling on the "Cuesta Rey" distributor, John Wagner & Sons, who are having a splendid call for this brand. Steve Hertz, sales manager of the D. Emil Klein Company, was a visitor last week with samples of the new Klein Company brand, ''Lawrence Barrett," to retail at five cents. Abe Caro, sales representative of A. Santaella & Company, Tampa manufacturers of the ''Optimo" brand, was in town on Tuesday visiting the "Optimo" distributors, Yahn & McDonnell. The ' ' Optimo ' ' brand is having a splendid demand here. On IMonday it was discovered that thieves had en- tered the exclusive Rittenhouse Club and stolen the entire stock of imported cigars from the cigar stand. Frantic efforts were made on ]\Ionday morning to re- place the stolen stock, only to find that many of the sizes and brands could not be replaced at present, due to the shortage of these brands as a result of the pro- longed cigarmakers' strike in Havana. "Briggs" pipe mixture, a high-grade smoking to- bacco manufactured by the P. Lorillard Company, has been taken on by Yahn & :\[cDonnell for exclusive dis- tribution in this territory. It is packed in an attractive tin holding one and three-quarters ounces to retail at fifteen cents. The tobacco will be placed in high-grade outlets only and with each original order an attractive counter display consisting of a small wicker basket containing six of the fifteen-cent packages and a dis- play card will be given free. August 1, 1932 Say Ton Saw It in The Tobacco World 52nd year Mfe thank you for your patronage V "It's toasted" Your Protection —against irritation —against cougli TUNE IN ON LUCKY STRIKE — 6o modtm mmuttf with the world's fineit dance t.rchestrat, and famous Lueky Stnke feaimtt, itvery Tuesday, Thursday and Saturday evening aver N. B, C. networks. STRIKE ^CIGARETTE > Copr., J9}a, Th« Anwriean TobaocnCo. 52nd year THE TOBACCO WORLD August 1, 1932 PHULOFAX GIVES FACTS ABOUT SUCCESSFUL RETAILING X OUXCE of tact is the source of wealth and one of the secrets of successful retailing, ac- cording to Phil M. Fulofax, D. B. I., expert in cigar retailing methods, who is associated with Bayuk Cigars, Incorporated, of Philadelphia. D, B. I.'s latest message arrived by air mail just before this issue went to press. ''Bigtown, U. S. A.— Tliere are just two kinds of letailers, those wlio are successful and those who aren't. While I've been burning up miles of railroad track and sitting in on club car conventions, I have doped out a few of the characteristics which most suc- cessful retailers possess and I am sending them in for you to use as you see fit. ''1. Hard work, hand and head, but mostly head. Tlie hand work to keep your place of business in order and conduct it properly. Tlie head work decides what you can do to best advantage with the hand power available. It keeps your business ear close to the trend in business styles and directs your business dealings with your customers. *'2. Knowledge of the merchandise you sell — which means full appreciation of the true Value you are offering your customer and some idea of the value offered by your competitors. *'3. Business personality is a combination of knowledge and head work. It is expressed in the style of store you present to the public, the type of sales people you employ and the quality and value of the merchandise which you offer to the buyer. **4. Tact is the intangible ingredient which mixes all of these together into a solid business unit which functions successfully and smoothly. Or, if it is lack- ing, allows the others to disintegrate. **The combination is almost as important to suc- cessful retailing as four wheels to a ritzy buggy. A wagon miglit travel a sliort distance on three wheels, but not very smoothly, and it certainly wouldn't get very far. Some fellows work their heads off, study up on tlieir cigars, wear a cheerful smile, but stumble all over tliemselves, step on a man's pet corn and lose his trade on the spot. **It takes tact to make a retailer whom everyone will like and from wliom everyone will be glad to buy. Remember that all customers are not the men who come in, ask for a certain brand, expect a tliank you in return and depart on their business. Some are crotchety and opinionated. Some are fussy and uncer- tain. It takes all types to make up a patronage, and the good retailer includes them all— wins them and keeps them. In a discussion with okl Ed Friendly, who does a thriving, steady business, and whose cus- tomers return year after year, I jotted down some of his ideas on tlie subject. " 'Xover win an argument with a customer. His business is more important tlian your opinion on the tariff, i)roliibition, or the rehitive merits of domestic and imi)orted leaf. Many a man enjoys a friendly dis- cussion, but he never likes to take a"^ beating, in talk or otherwise, and though the referee holds up your hand, he will never be really convinced. *' 'KN'spect your customer's taste. If he likes an inexpensive cigar, don't pass it across the counter with a haughty ( x|)iession. If you want to jack up his taste, do it in some other way, but never make him feel he's a cheap skate. Treat your customers equally well, no matter which way they cross the railroad track to go home. V ENGINEERING PERSONNEL AVAILABLE HE Philadelphia Technical Service Committee, specializing in engineering personnel, invites inquiries from employers seeking the services of engineers, who can today create and de- velop the better business of tomorrow. Many of these men, now unemployed were recently the key men in their particular lines of endeavor, and will be eagerly sought after when the wheels of industry again turii more swiftly. They can today be made a* part of your organiaztion at a substantial discount from their sala- ries of yesterday, to be your permanent employees of tomorrow. Your selection is made from over 900 registrants, who have tiled their record of education and experience Avith this committee, a group of technically trained men, able and willing to serve either as assistants or in more responsible positions. Make the most of this opportunity, send in your requirements to the P. T. S. C. located at the Engineers Club of Philadelphia, 1317 Spruce Street, or telephone Pennypacker 5234. The Philadelphia Technical Service Committee has the co-operation of the local sections of twelve national engineering societies, and is associated with the State Employment Commission of Pennsylvania. The per- sonnel of this committee is composed of volunteers from among the unemployed engineers, who give of their time and effort without recompense. Let your test of our perforaiance convince you of the sincerity of our purpose. Attention is immediate, and confidence assured to employer and employee alike, without charge to either. The desire only is to'serve. DEISEL-WEMMER NOT TO ABANDON WAPAKONETA PLANT Last week the Deisel-Wemmer-Gilbert Corpora- tion announced its decisions not to abandon its Wapa- koneta branch cigar factory, following an interview witli a special committee of the Wapakoneta Chamber of Commerce, after rumors became current that the factory, closed May 30th, would never be reopened. The shop was closed following a decision to tem- porarily discontinue manufacture until a more favor- able time for staging a promotional program for their /'El Verso "brand. The Deisel-Wemmer-Gilbert officers asked the local committee that it bespeak for the corporation, its workers and its holding there, the indulgence and good will of the Wapakoneta people. Xo statement could be given as to the probable date for resuming operation of the plant. UNIVERSAL LEAF DIVIDEND Directors of the I'niversal Leaf Tobacco Company, Incorporated, have declared a quarterly dividend of iifty cents per share on the common stock of the com- l)any payable August 1st to stockholders of record at the close of business July 21st. '* 'Be a good loser. Go out to win a big sale, a box order; do your darndest; but if you lose, come up smiling and look pleased at the customer's quarter. '* '(^istomers are human just as we are behind the couuter. They don 't like to have their tastes ridiculed, their convictions jibed at, or their purchases scorned, it you can always try to understand how it feels to be under his derby, you'll make lasting customers and friends as well.' " August 1, 1932 Say You Saw It in The Tobacco World 52nd year FRESH! Never parched or toasted Camels burn slow and cool be- cause they're fresh. Made fresh and kept fresh in the Camel Humidor Pack, they bring you the full fragrance and aroma of choice Turkish and mild sun- ripened Domestic tobaccos in prime condition. Switch to Camels for just one day, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY Winston -Salem, N. C. Camels Don't rtmoie the Camel Humidor Pack — it is protection against perfume and ponder odors, dust and germs. Buy Camels by the carton for home or office. The Humidor Pack keeps Camels fresh e ins, R. 3. Rcrnolda Tobacco Company Made ¥Wi^Sn-Kept FRESH 8 52nd year THE TOBACCO WORLD August 1, 1932 August 1, 1932 THE TOBACCO WORLD 52nd year V ri \y \mm ii'irjii |||,a ■i^\': V.' .>aii*l6ir'Ai^,UAJ- News From Congress _ 'AND Federal Departments •ni IRST revenues from the 1932 tax bill will reach the Treasury about August 1, covering the pe- riod from June 21, when most of the miscel- laneous taxes became effective, to June 30. Under the law, returns of those taxes which are collectible monthly are to be made on or before the last day of the succeeding month, so that the June returns will begin to come in during the last few days ot July. In those cases where the tax is collected by the vendor who sells the article taxed, he is respon- sible for payment to the Government. New revenues from manufacturers' excise, mis- cellaneous and stamp taxes for the vear were estimated by the Treasury at $649,000,000. An average of $54 - 000,000 monthly, therefore, might be anticipated, but in many instances the revenues for the last third of June will not accurately represent the returns which may normally be expected, because of heavy sales of certain commodities, such as automobile tires, just be- fore the taxes became effective, as purchasers sought to avoid the tax. The initial return of the taxes, however, will en- able Treasury actuaries to draw a fairly accurate pic- ture of what may be anticipated. Miscellaneous internal revenue collections during June under the old law amounted to $46,307,000 indi- cating that about $100,000,000 will be secured monthly beginning August 1. Corporation tax collections bv the Government during the fiscal year which ended June 30, last amounted to $629,566,115, a decline of $396,826,533, or more than one-third, as compared with the fiscal year JJdl, while individual income taxes totaled $427190- ;i81, a decline of $406,457,216, or nearly 50 per cent!, it IS disclosed by final figures just compiled by the i reasury Department. Income, corporation and individual taxes amounted to $1,056,756,697 and were $803,283,799 lower ban in the preceding year, it was shown. Receipts t rom miscellaneous taxes amounted to $500,972 345 a decrease of $67,215,911. The total of internal revenue of $870 499 n ^'""^^ ^''''''' '''"*" $1,557,729,042, a drop Practically all miscellaneous tax receipts were under those of the preceding year, the Treasury re- ported. Cigarette papers and tubes and grape brandy were the only exceptions, receipts from the former amounting to $1,700,502, an increase of $258,676. Total ^^i''^'o*i''f M. MOSS. Trenton, X. J ABE BROWN, 180 Grumman Ave., Newark, N. J. President First Vice-President Second Vice-President Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN p,„jj„, SAMUEL WASSERMAN Vice-Pre.ident snl)stantial reductions in the prices of the 'La Corona' l)rand: Belvederes fit'tocn cents, Pertectos three for fifty cents, ('(M-onas Chicas twenty cents, Ohscquios twenty- five cents, (V)rona Coronas three for one ropose(I s;des a^^ency i-ejiicscnts onr effort, through these important international brands, to revive the hi^h-t^n-ade cii^^ar hnsiness on a profitable footing for the retail dealer. We ask your earnest co-operation for th(» success of tliis endeavor. "The return of this letter with your siirnature and ad n^'oirnized as an a|)plication for appointment as an air<'nt for these inter- national brands. ** Very truly youi's, **A,H.Greg^, President." 12 52nd year THE TOBACCO WORLD August 1, 1932 RETAIL STORE PROBLEMS So many persons are unaivare of the many aids to business which have been carefully prepared by the United States Government, and so many of those who are aware of these facilities fail to take advantage of them, that ive are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) BUDGETARY CONTROL IN RETAIL STORE MANAGEMENT {Continued from previous Issue) Another factor to be used in determinin^^ the time to buy is the length of time of delivery from the source of supply. If it takes two weeks to obtain one article and a month to obtain another, this difference is of course considered at dates of ordering the two articles. The method of transportation which is to be used must also be taken into account. For example, express and parcel-post delivery services are more rapid than freight, but much more costly. The condition of pro- duction in the market, labor in the industry, and mediums of transportation, and the normal delivery period together give further data for arriving at the exact time to purchase. The amount of any i)articular type of product which will 1x3 demanded is much more difficult to ascer- tain in the case of style goods than in that of staple goods. However, the sizes, price, and strength of brands can be considered in the further analysis of the sales quotas to aid in determining the amount to pur- chase. In the control of purcliases of style goods, however, the history of a particular style from its inception until its death plays a most important part. As soon as the warning is given, by diminished sales, that the popu- larity of the style is on the wane, this fact should be noted and registered u))on the open-to-buy record. The fact that style goods of some departments have a more rapid rate of turnover than styles of other departments must not be overlooked. Further analysis along the lines suggested in connection with the subject of stock turnover under staple goods may ])rove valuable. The danger of loss in good will from being without style goods is said to be less than from being without staple goods. At the same time the loss from carry- over of style goods is likely to l)e much more. There- fore, it is not so necessary to have a normal inventory at the end of the life of the style. Past records of delivery, the iei)utation of the com- pany which sui)plies the i)articular style, and the other factors suggested all help in determining the length of delivery vjeriod in connection with this type of goods. Opcratiug-KxppDsc Budget The ])urpose of the expense budget is to find and to stop th(j leaks. Small leaks, when duplicated many times, justify minute analysis. The appropriateness of the proverl), "A small leak may sink a great ship,'* is apparent. P'or the purpose of more careful control, the expense budget may be divided into advertising, delivery, labor, sundry expenses, etc. Only the first of these subdivisions will be considered in detail. The sales budget establishes a minimum goal, as it were, while the expense budget establishes a maximum. The two sources of profit are (1) increase of the prod- uct of sales times gross margin, and (2) decrease of expenses. One may be as fruitful as the other. The latter, however, has become of particular importance to department stores in the last few years, due possibly to increased operating expenses w-hich have resulted partly from growing competition and the inability to use large-scale buying power as a means of securing the most favorable terms from the producer. The principles of procedure for the control of ex- pense are classification of expenses, establishment of expense budget by relation of expenses to sales, and the establishment of a method of control. Expenses should be classified by departments into selling and nonselling. Accountants have done much in the classification of accounts for the adequate recording of expenses. A system w^hich is satisfactory for recording what has taken place is likely to prove satisfactory for recording what is expected to take place. Expenses within the departments should be divided into direct material and labor, proportionate part of the indirect material and labor, and general administrative expense. These expenses must be subdivided into fixed, those which vary directly, and those which vary partly with sales. In the preparation of the final budget sheet, the expenses of the nonselling departments should be allo- cated to the selling departments. To estimate the expenses which vary partly and those which vary directly with sales, the relation be- tween sales and expenses must be established. Past experience, changes of policy based upon standards of accomplishment in the industry, the influence of periods of depression, prosperity, and the intermediate stages are factors in establishing the relation of the various items of expenses to sales volume. An accounting sys- tem which will disclose the needed data is requisite for accurately establishing the relation of past expenses to past sales. In regard to the second factor, some prog- ress in the collection of statistics and the establishment of standards has been made by private associations and universities. Doubtless much more of this type of data will be available in the near future. The fact of the variability of expense ratios in the cycle of events from depression through prosperity and back to depression again is best proved by the citation of the results of a study by Cecil E. Frazer, as reported in the Harvard Business Review for January, 1923 : The important points which emerge from this examination of operating expenses in the various re- tail . . . businesses are (1) the manner in which oper- ating expenses tend to fluctuate closely with the sales on a rising market, as indicated by the small variations m the ratio of expense to net sales; (2) the sharpness with wdiich the percentage of operating expenses to net sales rises on a falling market, as shown bv the in- creases in these items in 1920 and 1921; (3) the decline of the percentage of gross margin to net sales in (Continued on Page 14) August 1, 1932 Say You Saw It in The Tobacco World 52nd vear 13 ALL TOBACCO PRODUCTS DECLINE IN JUNE HE following comparative data of tax-paid prod- ucts indicated by monthly sales of stamps are obtained from the statement of internal reve- nue collections for the month of June, 1932, and are issued by the Bureau. (Figures for June, 1932, are subject to revision until published in the annual report) : Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. June 1931 360,743,270 11,557,014 136,112,290 8,105,331 995,754 1932 316,382,980 4,369,540 74,478,422 4,949,995 225,219 Total 517,513,659 400,406,156 Cigars (small) No. 38,016,521 23,639,493 Cigarettes (large) ...No. 567,930 395,515 Cigarettes (small) .. .No. 11,508,062,422 10,560,212,050 SnulT, manuactured ..lbs. 3,334,973 3,061,541 Tobacco, manuf act 'd .lbs. 27,751,364 27,616,554 Note: The above statement does not include tax- paid products from Puerto Rico and the Philippine Islands. This information is shown in supplemental statement. Tax-paid products from Porto Rico for the month of June: June Products 1931 1932 Cigars (large) : Class A No. 12,923,350 9,213,275 Class B No. 132,750 5,100 (Uass C No. 441,350 108,550 Class D ....... . .No. 15,000 200 Total 13,512,450 9,327,125 Cigars (small) No. 1,500,000 250,000 Cigarettes (large) ..No. 350,000 25,000 Cigarettes (small) ..No. 500,000 200,000 Tax-paid products from the Philippine Islands for the month of June: June Products 1931 1932 Cigars (large) : Class A No. 16,764,940 13,597,325 Class B No. 85,090 17,503 Class C No. 41,198 4,310 Class D No. 60 Class E No. 100 2,490 Total 16,891,388 13,621,628 (Igarettes (small) . . .No. 208,000 160,497 Tobacco, manuf act 'd .lbs. 112 91 Note: Quantities of tax-paid products shown in above statements are indicated by stamp sales for the month. Supplement to the June Statement of Internal Revenue Collections Fiscal Year Objects of Taxation 1931 1932 Tobacco manufactures : Cigars $18,296,111.14 $14,434,188.48 Cigarettes 358,961,003.48 317,564,739.73 Snuff 7,190,466.16 6,846,301.69 Tobacco, chewing and smoking . . . 58,376,942.03 58,030,155.75 Oh Yeah? BUT SCIENCE SAYS O. G. IS THE BEST CIGARETTE >j 'MlWfj In 75 repeated tests made of four leadinfT cigaretio brands . . . measuring the heat con* tent of each cigarette by the Calorimeter method ... it was shown that old gold is from 112 to 156B.T. U's. <:ooLER than the other brands. That's why O. Gs. are cooler and do not scratch the throat or taint the breath. © P. Ivorillani C«»., Inc. PURE TOBACCO * NO ARTIFICIAL FLAVORING "BEST OF THE BEST" Manufactured by A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Kep West, Florida NEW VICE-PRESIDENT FOR BROWN- WILLIAMSON E. W. Stokos, (lirccloi- in cliarge of manufacturing operations, lias lioen elected vice-president of the Brown cV: AVilliamson Tobacco Cor])()ration, manufac- turers of * 'Raleigh" and ''Wings" cigarettes, ''Sir Walter Kaleigh" smoking tobacco, etc. \\. A. Ilanner, credit manager, has been elected a director of the cor- poration. 14 52nd year THE TOBACCO WORLD August 1, 1932 RETAIL STORE PROBLEMS (Continued from page 12) periods of inactive business because of competition on a price basis and the necessity for taking substantial reductions on inventories in order to move stocks; (4) the tendency of most merchants not to increase their rate of stock-turn in times of prosperity in order to reduce expenses and proi)are themselves for periods of depression. Operating Ex poises and Profits in Department Stores ^ Items 1920 1921 Salaries and wages 14.1 15.1 Rentals 2.1 2.6 Advertising 2.1 2.4 Traveling 3 .4 Losses from bad debts 1 .2 Other expenses 7.0 7.1 Total expense 25.7 27.7 Gross margin 27.4 29.0 Net proht - (per stock-turn) 1.7 1.3 Stock-turn 3.4 3.3 The practice of attempting to reduce expenses un- duly during the time of a falling market may lead to dire results and may defeat its own purpose. In the control of expenses the ])udget may be used as a maximum limit (a])sohite for the ])udget period, or from month to month) or as merely a desira])le attain- ment. A modification of tlie former use of the budget is to allow variations from tlie establislied phm ui)on the petition of a major executive. Not only, however, is it essential to control as far as possi])le tlie income aiul outgo, but to plan for long- time and short-time financial recpiirements. A com- pany may be ])ractically unable to meet its financial obligation, although theoretically — according to its books — it is solvent. From another angle, a company may be able to raise money on the s])ur of the moment to eliminate an embarrassing financial situation, but the failure to have made adeiiuate preparation may mean a much higher interest cost than should have been nec- essary. By the coordination of the individual Inulgets, the finances of the business can be planned. This may or may not l)e considered as a separate budget. To plan the casli realance sheet, an estimate of profits for the period may be obtained. Advertising Budget The advertising a])])ropriation is not new. In most respects this is no moie and no less than an advertis- ing Inulget. In fact, it may be considered as the em- bryo of the present adveriising budget. The differ- ence between the two lies in the method and detail of calculation of probable advertising expenditures. ' Harvard Business Review, January, 1923. 'Annual net profit: 1.7 X 3.4 = 5.78; 1.3 X 3.3 = 4.29. There are two major sources of demand-creating po^^er from advertising — (1) tangible factors and (2) intangible factors. The success of either is dependent upon the force and results of its suggestibility. The most important factors under the first source are (1) choice of mediums, (2) size of individual layout, and (3) num])er of issues. Elements w^hich determine the character of the copy and layout constitute the factors of the second. P]stablishment of the objective of the demand-creating aid is of primary importance in the computation of the advertising budget. When the pur- pose is determined, the tangible and untangible factors required to give results can to a large degree be de- termined. In computing the former, there must be taken into account such elements as changes in adver- tising policy, based upon market analysis; the relation of past advertising to sales, noting the effect of varia- tions in the market from buyers' to sellers' and back again, in conjunction with the estimated sales; and cost of advertising in light of results. Since the past results and future expectations will be based upon averages and not upon individual sales effort, the intangible elements will not have to be con- sidered in the estimate for the budget, unless there is a change in the personnel which ])rovides copy. How- ever, in case of a change of personnel, it may be feas- ible, by the sampling or test method of measuring advertising results, to estimate the ditTerence in the suggesting power of the revised copy. It is obvious, liowever, that this latter scarcely justifies the assump- tion of accurate quantitative measurement. Upon the basis of the advertising budget contracts mav be let. Advantages and Disadvantages of Budgetary Control The construction of a budget depends upon the ends to be accomi)lished. Preliminary steps in con- struction and installation must be logically and com- pletely thought out in light of the objectives. Exam- jjles of the type of problems which must be solved are the determination of the length of the budget period and the degree of cooperation which can be assured. In department stores the usual Inulget period is six months, l)ut modifications may be made each month. The degree of cooperation is determined in large part ])y tlie manner in which the budgetary control plan is presented to subordinates. In operation the preparation of estimates and re- ports so as to show the comparison of actual with esti- mated results, and the placing of synchronous author- ity and responsibility for accomplishment, is essential for adecpiate control. A central committee or execu- tive should be in control of the preparation and oper- ation of the final budget. This is of real value in the proper coordination of the constituent elements of the budget and the enforcement of the estimates. The successful operation of the budget depends upon the accuracy of the predetermined calculations, the elasticity of the budget to meet changing conditions, the promptness with which action is taken when varia- tions from the budget disclose weaknesses in the oper- ation, and the cooperation of executives and employees. In the ultimate analysis, the purpose of a retail store is to make profits for its owners. Therefore the relative costs of operation and installation of a bud- getary control system in relation to the savings it makes possible is a prime consideration. Unfortunately very little information is available upon this important phase of the problem. However, the results of a ques- tionnaire sent out by a large retail dry-goods associa- tion showed that the general opinion of those using even the partial budget was that the results justified (Continued on Page 16) August 1, 1932 THE TOBACCO WORLD 52nd year 15 HAVANA CIGAR FACTORY IN TRENTON (Continued from Page 3) decided to purchase the large plot, comprising 54,944 square feet, bounded by Grand Street, Virginia Avenue and Smith Street. This tract has sufficient area to create an environment in keeping with the high-grade products which will be manufactured there. A con- siderable area of the plot will be landscaped to har- monize with the general character of the dwellings, with their grass plots, in the immediate neighborhood. Plans were prepared by the architects, Francisco and Jacobus of New York and Chicago, who have de- signed and supervised the construction of similar build- ings in the past, and who are thoroughly conversant with the particular requirements. The manufacturing plant mil be so located that the triangular piece of land on the front or north side of the building will lend itself to attractive landscaping treatment. On the south or rear side, there will be ample room for shipping and parking. The additional space between the sidewalk and the building will en- hance the beauty of the building. Approaching the building from Grand Street or Virginia Avenue through the area set aside for a park, the entrance will lead into an appropriate environ- ment, expressed by the Spanish motif used in the gen- eral design of the building. Through the large gates between Spanish towers, the way will lead to a patio, with tile walks and grass on eaeh side of a central re- flecting pool, w^hich will be fed by the fountain located between winding steps leading to the loggia at the south end of the patio. Upon mounting the steps and enter- ing this loggia, there wall be seen the entrance to an attractive reception room, in the design and decoration of which the Spanish feeling predominates. This re- ception room will be connected with the offices and the manufacturing areas. The Building Described In general, the building will be U-shaped, and will partially surround the patio. The east and west wings will consist of a high basement, w^ell lighted by windows, and two manufacturing floors. These wungs are de- signed to make possible a future additional floor and the building proportions are so arranged that this addition will not disturb the beauty of design. The main build- ing, running east and west, at the south of the tw^o wings and the patio, will consist of the basement, three manu- facturing floors and a recreation and dining room on the fourth floor. The basement, as well as a portion of the first floor, will be used for storing and opening the tobacco. On the first floor, in addition to the operations in- dicated above, there will be the shipping departments, locker rooms for botli men and women, first-aid rooms, office space and the reception room. The locker rooms will provide modern equipment for the comfort and convenience of the employees. The offices for the cleri- cal force are carefully laid out to meet their require- ments, and the special offices for supervisory and execu- tive functioning are properly co-ordinated for the work required. The first-aid rooms w^ill furnish every neces- sity and convenience for the proper relief of an employee. The reception room, w^ith its air of old Spain, will introduce each visitor into an atmosphere of calm in keeping with the effect of the product to be manufactured. The second floor will be used entirely for manufac- ture, and every attention has been given to light, air and cleanliness. The manufacturing floors will be under humidity temperature control at all times. This provision of controlled humidity and temperature is a EARLY SMOKERS AMAZED CROWDS MOKING is such a common sight today it is hard to believe people once gathered on the streets and gazed upon it with amazement. Yet less than four centuries ago the men and women of London assembled in crowds, according to historians, to witness tobacco smoke issuing from the mouths and nostrils of the sea captains, who learned the solace of smoking from the Indians on their visits to America. Thomas Harlot, one of the party accom- panying Sir Richard Grenville to Virginia in 1585, tells how he and his companions w^ere introduced by them to the enjoyments of smoking in **A Brief and True Report of the New Found Land of Virginia." ''We ourselves," Harlot said, ''tried their way of inhaling the smoke." Harlot and his friends w^ere obliged to smoke strong, harsh tobacco only crudely prepared for smok- ing because that was all they could get at the time. Since then amazing changes have taken place in the cultivation of tobacco and manufacture of ciga- rettes, wiiich have made available fine, mild tobaccos, from which certain impurities are then removed by the toasting process including the use of ultra violet rays. Harlot would find such cigarettes a far cry from the raw, crude tobaccos w^ith wiiich he and his com- panions w^ere initiated into the practice of smoking a few^ centuries ago. GENERAL COMPANY IMPROVING YORK PLANT The General Cigar Company has a force of work- men renovating the first floor of their plant at York, at Penn and Smyser Streets. It is understood that the General Cigar Company will locate its own printing plant in that city and work is being rushed on the project. The building was vacated July 1st by the Kenneth L. Cox leaf tobacco firm. vital factor and one which makes possible the location of this factory in Trenton. The third floor of the main building, devoted to the completion of the manufacturing operations, is de- signed to have the natural lighting arrangement which will give the best results from the standpoint of product and employees. On the fourth floor of the main building will be a restaurant and rest room. Here again the Spanish feel- ing will prevail in the decorative treatment, with its vines and trellises, on the exterior walls and its high casement windows. Cleanliness Emphasized To earry out the general underlying principle of cleanliness, the building will be designed throughout with sanitary bases and coved ceilings, rock maple floor, the latest type of toilet room fixtures, metal partitions and tile floors. In the wash rooms there will be pro- vided ceramic tile floors, individual lavatory, hot and cold water, liquid soap service and sanitary drinking fountains. Here again the sanitary base and coved ceiling will carry out the underlying thought of cleanli- ness. In the execution of the project, the owniers and architects have carried out an economical design com- bining maximum utility wdth architectural beauty. The building, which wall be completed in the fall, will not only furnish employment during construction but will employ many workers who will spend their w^orking hours in a most pleasant environment. 16 52nd year THE TOBACCO WORLD August 1, 1932 News from Congress (Continued from page 8) Preliminary figures just made pul)lic by the bu- reau place the number of wooden cigar boxes produced in 1931 at 86,824,000 against 95,066,106 in 1929 and the value at $8,585,000 against $11,300,842. Other activi- ties of the factories engaged in this industry declined 69 per cent., from $1,158,583 in 1929 to $360,000 last year. The figures on cigar box production, it is pointed out by the bureau, may not be entirely accurate due to the possibility that some manufacturers included in their reports data for cigar boxes made partly of ma- terials other than wood. The report shows that the number of establish- ments engaged in the industry declined 20 per cent, between 1929 and 1931, from 118 to 95, w^hile the aver- age number of wage-earners declined 13 per cent., from 4374 to 3800, and the annual wage payments dropped 27 per cent., from $3,507,711 to $2,577,000. ^ The cost of materials, fuel and purchased electric energy dropped 33 per cent., from $5,238,209 to $3,506,000. RETAIL STORE PROBLEMS (Continued from page 14) the expenditure. The estimates of the exact cost of operation of a merchandise budget ranged from no ad- ditional expense to $150 per week. Obviously the va- riation in the elaborateness of the system would make a great deal of difference in the absolute amounts of the additional expense. Recognized Difficulties DifTieulties of budgetary control which must be rec- ognized are: 1. The budgetary program is based upon esti- mates. The difficulties of preparation of the sales budget are caused by — (a) Difficulties in forecasting — (1) Market fluctuations. (2) Seasonal fluctuations. (3) Weather conditions. (4) Lack of standardization of products. (5) Complication by style goods, which makes past records somewhat incomparable. (6) Lack of statistics of sales to start with. (b) Difficulties in establishing relations between sales and expenses and sales and purchases. 2. Budgetary plans will not execute themselves. 3. Administration can not be replaced by budg- etary control. The use of the budget system may re- sult in too little emphasis on other methods of mana- gerial control. 4. Budgetary control can not be perfected imme- diately. 5. Danger of expecting too much from the Inidg- etaiy system, especially at tirst. 6. The ox])ense of operation may be very consid- erable, if not watched closely. 7. Fh'xibility, which is essential to successful op- eration, may lead to a disregard of ])udget altogether. 8. Difliculty of gaining cooperation of various functionaries. 9. Danger of being ''ironclad," which may lead to too much **red tape.*' Advantages The advantages which should result from the proper construction and functioning of a budgetary system are as follows: 1. Budgetary program makes possible- fa) Construction of a profitable sales program. (b) Coordination of sales and purchases. (c) Coordination of sales and purchases with finances. (d) More direct control of expenditures. (e) Formulation of financial program. (f ) Coordination of all the activities of the busi- ness. 2. Budgetary program encourages — (a) More careful thinking. (b) Discipline, by requiring speedy and accurate reports. (c) Concurrent competition and cooperation among employees. (d) Explanation of increased expense or de- creased sales. 3. Activities of the budget in its role as detective^ (a) Stock control; detection of slow movers. (b) Detection of sources of stock shortage. Conclusion In conclusion, it must be recognized that it is not essential that all of the suggested budgets be instituted at once or that all parts be used. The system, however satisfactory, must never be looked upon as complete and the most perfect, but always as an advance toward a more perfect control. It may be feasible to estimate only total sales at first. Then they may gradually be broken down into departments and subdivisions of departments. Next, a merchandise budget may be instituted, which deals only in rough departmental totals in money volume. Later the divisions of control may be broken down and both physical and monetary volume computed. After this the operating expense budget may have its turn at evolving into a polished plan. Expense may be deemed more important than stock and purchase con- trol, and therefore the expense budget may be devel- oped before the merchandise budget. But in any case, jilanned sales, no matter how superficial the estimate may be, must be the starting point. .Making haste slowly and building carefully each step, with eyes always focused on the ultimate goal, are the true means for the establishment of a success- ful system of budgetary control. (To he Continued) INTRODUCE NEW BRAND BY MESSENGERS On July 18th a novel idea was used to introduce a new brand of cigars to wholesalers in New York, New Jersey and Connecticut. Simultaneously jobbers in forty cities in those states were visited by uniformed Western LTnion messengers who presented them with a sample box of '^Cadillac" cigars and a telegram reading as follows: **Good morning. We are presenting the finest nickel cigar in the market, the 'Cadillac' long filler Sumatra wrapped, selected with great care, backed by forty years' manufacturing experience, for jobbers ex- clusively. Our prices, plus * Cadillac' quality, are sure to create more sales. Telegraph, telephone, or write for details." The plan was sponsored by the Plymouth Trading Company, of 542 Fifth Avenue, New York City. August 1, 1932 Say You Saw It in The Tobacco World 52nd year 17 DOWNY MILDEW DISEASE SERIOUS OB AC CO downy mildew, known in many re- gions as '*blue mold," which appeared in seed beds in Florida, Georgia, Louisiana, South Carolina, North Carolina, Virginia and Mary- land last year after disappearing ten years ago, ad- vanced further northward this year and has proved more dstructive than a year ago, the United States De- partment of Agriculture reports. The mildew was particularly serious in Georgia, the department says. It w^as found this year as far north as Lancaster County, Pennsylvania, and again in Maryland, Virginia, North Carolina, South Caro- lina, Georgia and Florida. The effect of the disease on this year's crop is uncertain although in all the States mentioned except Pennsylvania the shortage of plants as a result of the disease materially retarded ])lanting and in many cases was responsible for poor stands and reduced acreage. Downy mildew, which is caused by the fungus Peronospora hyosciiami, is chiefly a seed bed disease and very little of it is found in the field. The disease has long been known in Australia. It does not thrive in hot weather. It is very difficult to control and the department as yet has no control measure to advise to farmers. It is experimenting with sprays and scien- tists hope to develop a spray or other method which will control the disease. In Australia the tobacco growers attempt to meet the situation by planting seed beds at different times and choosing plants from the healthiest seed beds. Tobacco disease specialists of the department hope the disease may repeat its former history and disap- pear. It threatened the seed beds in Georgia and Flor- ida in 1921, but disappeared after that and was not found in this country until last year. The fact that comparatively little has been found in the fields this year leads to the hope that the disease may again dis- appear. LORILLARD TRUCK ROBBED On Monday Robert Carney was driving a truck- load of cigarettes from the P. Lorillard Company plant in Jersey City to Brooklyn, and when he reached Sec- ond Avenue and Thirty-ninth Street, he was accosted by a man in a police uniform who asked what was in the truck. The driver replied, ** Cigarettes" and ob- ligingly opened the back of the truck to show the oflScer. Whereupon the supposed officer immediately covered tlie driver with a gun and three accomplices appeared to assist. Two of the men forced the driver and helper into a sedan and two men drove away with the truck con- taining cigarettes valued at $25,000. Carney and his helper were driven to Locust Avenue and One Hundred and Seventy-ninth Street, St. Albans, where they were pushed from the car, and immediately reported the Jobbery. BROWN & WILLIAMSON ON TWENTY-THREE- HOUR SCHEDULE According to a recent announcement, the Brown & Williamson Tobacco Corporation, Louisville, Ken- tucky, has adopted a twenty-three-hour daily basis of manufacturing operations in order to keep up with the mammoth sale of their products, ** Wings" cigarettes and ''Golden Grain" smoking tobacco. New machinery has been ordered, and some already installed, to speed up production. iLMiLMM|iiJ|t^^|ti^|iili|ti^l>Lii|>i^i^^ Classified Column % The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. PTtT^ffiT^iig^ffif^i^y^tiff^jiff^^ FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco meUow and smooth In character and Impart a most palatable flavor FUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BBTUN. ABOHATIZEB. BOX FLAVORS. PASTE SWEETENERS FRIES & BRO., 92 Reade Street, Ne^ York 75% NOW PUFFING FIVE-CENT CIGARS Three out of every four cigar smokers are now puffing five-cent cigars, according to the latest official Government figures. While the new tax figures for the month of May of this year show that the consumption of five-cent cigars was somewhat less than for the same period in 1931, the decline is much less than that shown in most other forms of tobacco. Especially in the cigar field, the sanitary nickel cigar continues to get an increasing share of the total business. While the steady demand for the nickel smoke is in part due to economic conditions, cigar experts point out that the popularity of the five-center likewise has been due largely to improvements in manufacturing which have made possible not only a good cigar at a moderate price, but a cigar ollfering greater sanitary protection than was possible under the old fashioned hand methods. So elaborate have been the methods evolved to insure the ultimate in health protection that one five-center has l)ecome known as the only cigar in the world finished under glass. The United States Internal Revenue figures show that in May of this year, nickel cigars comprised over 77 per cent, of the total cigars smoked, while in the same month of 1931 they accounted for only about 67 per cent, of the total. The fact that the five-cent cigar has been recog- nized as safe and sanitary, experts believe, has resulted in a sustained demand for it. Ip AUGUST 15, 1932 \ 18 52nd year Say You Saw It in. Thb Tobacco World August 1, 1932 Tobacco Merchants' Association Registration Bureau, ^?w'S&"cm Schedule of Rates for Trade-Mark Services Efifective April 1, 1916. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowance of $2 will be made to members of the Tobacco Mer- chants' Association on each registration. Note B — If a report on a search of a title necessitates the reporting of more than ten (10) titles, but less than twenty-one (21), an additional charge of One Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-one (31), an additional charge of Two Dollars ($2.00) will be made and so an additional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATION JONES BEACH :~46,057. For cigars. July 14, 1932. Jacob Stahl, Jr., & Co., New York, N. Y. TRANSFERS HILIAN:— 43,602 (T. M. A.). For cigars. Registered November 13, 1923, by C. H. Hilbert & Co., New York, N. Y. Transferred by C. H, Hilbert & Co., Inc., to Karl O. Nesslinger, New York, N. Y., July 6, 1932. WM. E. BAXTER:— 28,455 (United States Tobacco Journal). For cigars, cigarettes and tobacco. Registered March 7, 1904, by O. L. Schwencke Litho. Co., Brooklyn, N. Y. Transferred by The Moehle Litho. Co., Inc., successors to original registrants, to Bobrow Bros., Inc., Philadelphia, Pa. A. M. WILLARD:— 37,298. For cigars, cigarettes, cheroots and to- bacco. Registered March 14, 1912, by American Litho. Co., New York, N. Y. Transferred to Geo. Zifferblatt & Co., Philadelphia, Pa., and re-transferred to The Walgreen Co., Inc., Chicago, 111., July 12, 1932. UNION TREATY:— 24,513 (Tobacco World). For cigars, cigar- ettes, cheroots and stogies. Registered June 13, 1912, by E. C. DePutron, York, Pa. Transferred to George A. Ellis, York, Pa.. July 18, 1932. ... THE SHERWOOD:— (U. S. Tobacco Journal). For cigars. Regis- tered November 27, 1888, by Witsch & Schmitt, New York, N. Y. Transferred by Consolidated Litho. Corp., successors to original registrants, to Geo. Zififerblatt & Co., Philadelphia, Pa., July 19, 1 VO^a TWIN CUBS:— 15,649 (Tobacco World). For cigars, cigarettes, cheroots, stogies and tobacco. Registered May 23, 1908, by J. G. & J. A. Fisher, Hanover, Pa. Transferred to Fisher & Koser To- bacco Co., Hanover, Pa., July 19, 1932. PRIMO DEL REV:- 20,969 (U. S. Tobacco Journal). For cigars, cigarettes and tobacco. Registered February 23, 1899, bv F. Hep- penheimers Sons, New York, N. Y. Through mesne tra'nsfers ac- quired by Clark, Chapin & Bushnell, New York, N. Y., and trans- ferred by Austin, Nichols & Co., Inc., successors to Clark, Chapin & Bushnell, to Cuesta, Rey & Co., Tampa, Fla., March 25, 1926. "HABANELLO" FORGING AHEAD Rothenberg & Schloss, Denver distributors, have taken on the ;'Habanello" line of Geo. Zifferblatt & Co., for distribution. Amedee Levie, factory repre- sentative has been spending some time recently with the Rothenberg & Schloss Company, and "Habanello^' prospects in Denver territory are exceedingly bright. Gus Lauber, ''Habanello*' factory representative, has been doing some splendid work with Tinkham Bros., Rochester, N. Y. branch, and has made some splendid new placements for **Habanellos." Bernard Myers has been working this week with the F. A. Davis Company, Baltimore, Md., and has met with excellent success in obtaining new accounts for **Habanello'' in their territory, as well as obtaining splendid repeat orders. CONGRESS CIGAR EARNINGS The Congress Cigar Company, Incorporated, re- ports for the quarter ended June 30, net profit of $36,- 416, after charges and Federal taxes, equivalent to 11 cents a share on 336,800 no par shares of capital stock. This compares with $102,913, or thirty cents a share on 336,800 shares in the preceding quarter, and $128,- N. A. T. D. SECRETARY EXPLAINS {Continued from Page 3) jobbers have come and gone. To the best of my knowl- edge and belief, those organizations were doomed to oblivion due to the fact that the members comprising them, for selfish reasons, made promises — that could not be fulfilled — in order to attain positions of trust for themselves which were meant to be abused. These associations went out of existence as soon as conven- ient to the same powers that brought them into being, after the heads had attained some measure of remu- neration. Our association will make no rash promises but it is hoped that through organized effort our aims will be accomplished. It is regretful that you were unable to attend either the meeting held in New York City or in Cleveland, due to the position your good house occupies in your particular neighborhood. I feel sure and I know that I voice the opinion of all our officers when I say that the association needs the guidance and wisdom of all those interested in the problems confronting the entire industry, particularly in the distributing unit. Being the good business man that you are, you would invest $100.00 if you were assured that you would realize a profit of at least $10.00 in return for your investment. Even would this be possible, it could not be judiciously said at this time, because the assist- ance emanating through membership in the National Association of Tobacco Distributors, at present is very problematic. As for myself, I would be satisfied if the demoralizing conditions in this industry would stop a year from now, without receiving any remuneration, for that would mean that the time is nearer when the position of the distributor is more tenable. If you didn't read my open letter to the trade in general, which was published in the leading trade pa- pers on July 16th, I wish to call your attention to the paragraph where I stated that many of us are spend- ing many times the insignificant amount of the annual dues of this association, without giving it any thought. Notwithstanding the fact that many associations (none national in scope) have been doomed to failure, I would certainly join this one and give it a chance, not with the expectation of reaping immediate benefits, but with the thought in mind that through wise counsel, judicial deliberations and perhaps change of statute through organized efforts, we may, at some future time, it mav be very near or far, be rewarded for our hard work and efficiency by stabilization and peace of mind. I am sure Mr. , that you would not stand by and see your neighbor take a desperate chance and perhaps risk his life in an undertaking that you might be benefited by and say— **if he is lucky enough to get by, I will then take that chance." Of course you will understand that there is noth- ing personal in this communication. The comparisons contained therein are merely food for thought and I hope that your reply will be signing the membership card and returning it to me for attention, as per my previous letter. With best wishes, I am. By Max Jacobowitz, Sec'y. mj-mlj 539, or thirty-seven cents a share on 350,000 shares in the June quarter of the previous year. For the six months ended June 30, net profit was $139,329 after charges and taxes, equal to forty-one cents a share on 336,800 shares, as compared with $351,- 450, or $1 a share on 350,000 shares in the first half of 1931. (( Oh Yeah? BUT SCIENCE SAYS O. G. IS THE BEST CIGARETTE »» -MfNfs ,^^\HOER< automatic machines offer A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AUTOMATIC AGE 2810 S. Michigan Avenue Chicago lUinois In 7o repealt'il leuls inatlc of four leading ri brands .. . ni4>asiirin i.oi.li i** from 112 lo l.>6 H. r. IV. <:ooi.KR than throlhrrbramls. That's why O. Gs. are rooh-r ami «Io not Hcraleh the throat «>r taiut the breath. © P. I,..rill;ir.l f,<>.. Inc. PURE TOBACCO • NO ARTIFICIAL FLAVORING "BEST OF THE BEST" ^^^I^^I^^^L^ A. SANTAELLA'& CO. Office, 1181 Broadway, New York City FACTORIES Tampa and Kep West. Florida iiiiiiinimii inniiiiniiiiniimiiHi UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. ^ After all 'nothing satisfies likc^ a good cigar ^ Fashion Note for the well-dressed cigar: • • WOODEN BOX • • The longstanding pork and beans alliance, the famous Smith Brothers partnership, the life-long friendship be- tween Tom and Jerry — none of these is more inevitable or more lasting than the fondness of a fine, mellow cigar for a fragrant wooden box. WHEN BUYING CIGARS Remember fhaf Regardless of Price THE BEST CIGARS AKE rAOUS IN WOODEN BOXES Volume 52 THE TOBACCO WORLD Number 16 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, AUGUST 15, 1932 Foreign $3.50 "LA CORONA" AGENCY PLANS ANNOUNCED HE plan under which the "La Corona" and other brands of the Henry Chiv and Bock & Company, formerly manufactured in Havana but recently transferred to Trenton, N. J., will he marketed was announced recently in a letter to se- lected retailers as follow^s: "Gentlemen: "Henry Clay and Bock & Company, Limited, have announced their decision to transfer the manufacture of their international brands from Havana to the United States. The most important of these brands are 'La Corona,' 'Bock & Co.,' 'La Carolina,' 'Ca- banas,' 'Henry Clay,' 'Villar y Villar,' 'Manuel Gar- cia Alonso.' "Only the rolling and packing will be transferred to the new Customs Bonded Factory in the United States from which wdll be supplied the requirements of both the domestic and foreign markets. Under these conditions the manufacturers guarantee the con- tinued use of the identical Havana tobacco heretofore employed and absolute maintenance of the quality standards which have made these brands famous the world over. "This company will act as wiiolesale distributors for these famous international brands throughout this territory. In order that their sale and active promo- tion may represent an important franchise to the re- tail dealer having the necessary high grade location, we have decided to market these cigars exclusively tlirough retail sales agencies, which will be established at convenient locations throughout the territory. Such agents will sell the cigars for our account at fixed re- tail prices, and under definite conditions of an agency appointment. The cigars will not be distributed through any other channels. "It is expected that these new goods will be avail- able not later than September 1 next. Between now and August 15 we desire to establish the necessary re- tail appointment to make them available for the pub- lic and invite tejitative applications for such agencies among the retail trade. We reserve the right to accept or reject any such application. On receipt of your application, full details of the agency appointment will be submitted for your consideration, but without obli- gation on your part to accept the agency if the terms of the appointment do not have your approval. "That you may fully grasp the importance of this step, we* give you the following retail prices which will api^ly to a few of the staple sizes and will repre- sent substantial reductions in the prices of the 'La Corona' brand: Belvederes fifteen cents, Perfectos, three for fifty cents, Coroiuis. diicas, twenty cents, 0])se(iuios, twentv-five cents. Corona Coronas, three for $1. "The proposed sales agency represents our effort, through these important international brands, to re- BAYUK COMPANY RUSHES APPEAL IN NAME INFRINGEMENT FIGHT X appeal from the recent decision of the United States District Court at Trenton will be taken immediately by Bayuk Cigars, Incorporated, as the next step in its fight against what the company terms unfair competition and infringement of the name used for its popular ])rand. The ruling, handed down by Judge John B. Avis was the result of a suit instituted bv the Bavuk Com- ])any late in 1930 against Samuel Schwartz of West Xew York, X. J., and was ])ased on the fact that the Philadelphia company has been manufacturing cigars under its brand name for more than twenty years. (Commenting on the decision and ]jending appeal, Mr. Harry S. Rothschild, president of the Bayuk Com- pany pointed out that the company's fight will be car- I'ied to the limit to protect jobbers and retailers w^ho for more than thirtv vears have stood loyally by the concern. Mr. Rothschild said: "The primary cause for the suit instituted by Bayuk Cigars, Incorporated, was to protect not only the jobbers and retailers, but consumers who have learned to expect a certain high standard of quality. Bayuk products have been known for many years to the smoker and it has been the company's consistent purpose not in any way to interfere witli the products of other manufacturers so long as the cigars produced did not promote unfair competition. "We feel that the decision at Trenton is not final but subject to review and it will not discourage the I^ayuk C'ompany in this sole purpose. Therefore the appeal against the decision will be carried forward with the least possible delay." MRS. NILES HEADS NILES & MOSER ^Irs. Frank V. Xiles, widow of the late Frank C. Xiles, head of the Xiles & Moser Cigar Company, Kan- sas City, has been elected president of the firm by the ])oard of directors. Ray W. Xiles continues as vice-president and general manager. Mrs. Niles will ])e known in the firm as "E. D. Xiles." vive the high grade cigar ])usiness on a profitable foot- ing for the retail dealer. AVe ask your earnest co-op- eration for the success of this endeavor. "The return of this letter with your signature and address at the foot thereof will be recognized as an application for appointment as an agent for these international brands. "Vcrv trulv vours," Retailers receiving the above letter have been ()uick to see tlie advantages of such an arrangement and a tremendous volume of applications have been received for agency appointments. 52nd year THE TOBACCO WORLD August 15, 1932 ''CHESTERFIELD" DISPLAY PUZZLES NEAR- SIGHTED ROWDS hurrviii<< past one of the world's bus- iest corners were much amused one recent July day. A near-sighted passerby stood peering into the window of the A. Schulte store at Fifth Avenue and Forty-second Street, New York, scratching his head in a perplexed way. He was examining the latest ''Chesterfield" display and it seemed that he didn't fully trust his eyes. Was this a moving picture or a window display? What he saw did move, indeed. That is, part of it. ** Chesterfield" is presenting, in a strikingly mod- ern setting, a panorama of summer-time activities. Gay young people are on vacation. Through a key- stone shaped opening the scenes shift — swimming, tennis, hiking, even romance in the moonlight. And there's something cool and refreshing in the colors — w^hite and pale lavender — as well as in the sharp sim- plicity of the exhibit as a whole. Across the bottom of the display in clear upraised letters runs the line ** Chesterfields are clicking with millions — They Satisfy." The thought seems to ** be- long" more than the ordinary sales message. Possibly because the popularity of vacation time has something in common with tlie popularity of a great cigarette. Anyhow, this latest "Chesterfield" ^yindow is getting plenty of attention, even during these hot days. CREDIT MEN URGE TRADE ACCEPTANCES Revival of trade acceptances as a stimulant to business was urged in a resolution adopted at the or- ganization meeting of the Philadelphia Association of Credit Men's Committee on Trade Acceptances. **An increase in volume of trade acceptances re- discounted with Federal Reserve Banks," the resolu- tion declares, "will further strengthen the Reserve Banks in their ability to supply requirements for gold through the use of eligible commercial paper as re- serve. "We urge the prompt adoption of Trade Accept- ances because of the current iiecessity for credit to finance and accelerate the improvement in business, and that to fully bring this about, Trade Acceptances received in payment for products sold should ])e dis- counted at banks or sold to l)j5nks through note brok- ers, and that banks discounting Trade Acceptances rediscount them with the Federal Reserve Bank." George Benner, of Bayuk Cigars, Incorporated, is a member of the above committee. McGUERTY TO REPRESENT PREFERRED HAVANA Last week it was announced by Jose M. Diaz, presi- dent of the Preferred Havaiui Tobacco Company, Tampa, that arrangements had been made with John L. McGuerty, well known as representative of the "Romeo y Julieta" factory, of Havana, whereby Mr. McGuerty will represent the T^referred Havana Tobacco Company in the future in New York and the New England territories. Mr. McGuerty will continue as agent for the "Romeo y Julieta" factory in the United States and Canada. The Preferred Havana Tobacco Company is manu- facturer of the "Eden" brand, formerly manufactured in Havana, but which w^as recently transferred to the Tampa factory. PHILADELPHIA'S ENGINEERING EMPLOY- MENT EXCHANGE WITHOUT FEE N February, 1932, The Engineers' Club of Phil- adelphia, and local sections of twelve affiliated engineering societies, sponsored "The Phila- delphia Technical Service Committee" which is today functioning to secure for the employer tech- nically trained personnel. It is now an established placement and consulta- tion service coordinated with similar organizations in other cities, and can furnish on demand competent technical help. It is associated with the State Employ- ment Commission of Pennsylvania. All applicants are requested to fill out a classi- fication form which records the registrants, personal, educational, and professional qualifications. Includ- ing a portrait it familiarizes the prospective employer with the men available to fill his request. When a request for personnel is received, consult- ing the file of applicants the employment manager eliminates those who do not meet with the request specifications and offers to the employing executive a choice from which to secure * ' The Right Men for the Right Job." Only men who are definitely known to be seeking employment are referred to the employer, and all ap- plications are kept up to date monthly to insure a fast and efficient service. Let this service committee prove by performance this satisfactory way of obtaining personnel. Ad- dress 1317 Spruce Street or phone Pennypacker 5234. A. B. NEWMAN DEAD Abraham B. Newman, of 141 East Third Street, New York City, who founded the firm bearing his name at 288 East Houston Street, passed away at Sara- toga Springs, N. Y., suddenly on July 17th, following a heart attack. He was seventy-six years old. Mr. Newman founded his firm in March, 1888, and remained in active business for nearly forty years. During the last few years the business has been under the management of his son, Jack Newman. The firm specializes in the importation of foreign tobaccos and smokers' articles of all kinds, and Mr. Newman's policy in building up the business was to supply the needs of the trade for merchandise which could not be obtained through ordinary channels, and the firm will continue to adhere to this policy. Funeral services were held at the Riverside Memorial Chapel, in New^ York, with interment at Union Field, Cypress Hills, Brooklyn. He is survived by his widow, two sons and three daughters. ADDITION FOR C. N. FOREMAN COMPANY C. N. Foreman Cigar Company, Red Lion, Pa., IS planning an immediate addition to its factory, which will measure 40 by 60 feet, in order to cope with the recent increase in demand for their brand, "White Swan", and which they have been unable to meet in their present quarters. Horatio Batezell, well known to the trade in this district, has recently become associated with the C. N. Foreman Company as factory representative, and has gathered around him a capable force of salesmen who are turning in a fine volume of orders for "White Swan." Mr. Batezell has recently returned from a trip to Pittsburgh and Harrisburg, where he was successful in creating new friends for the brand. August 15, 1932. Say You Saw It in The Tobacco World 52nd year FRESH! Never parched or toasted Camels burn slow and cool be- cause they're fresh. Made fresh and kept fresh in the Camel Humidor Pack, they bring you the full fragrance and aroma of choice Turkish and mild sun- ripened Domestic tobaccos in prime condition. Switch to Camels for just one day, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY Winston 'Salem, N. C. Camels Don't remove the Camel Humidor Pack — it is protection against perfume and powder odors, dust and germs. Buy Camels by the carton for home or office. The Humidor Pack keeps Camels fresh •iin.B.j.ii.,».id.Toi>.eeoc«np«., MoOe FRESH — JSTcpf FRESH 52nd year THE TOBACCO WORLD August 15, 1932 MIA. pHIbADEIi There is a more optimistic tone to business re- cently, according to I. B. White, manager of John Wagner & Sons' cigar department. Dealers are in- creasing their orders and money is being dispensed more freely, which is certainly encouraging news. Mr. John Wagner, of John Wagner & Sons, is spending some time at Bass Rock, Mass., where he is enjoying a brief rest and vacation. Mr. Joseph Wagner has been confined to his home on account of a severe cold, but is expected to be able to return to his desk in a few^ days. "Briggs" })ipe tobacco, a new high grade smok- ing mixture manufactured by the P. Lorillard Com- pany, is showing some consideral)le activity, accord- ing to Yahn & ^IcDonnell, local distrilnitors of the bland. "Briggs" retails at fifteen cents for a 1%- ounce tin. John Wagner & Sons are now showing two new sizes which liave just been added to their fine "Wagr ner" brand, and which are having an enthusiastic re- ception in the trade. One size, the "Dainties" is a five- cent seller, guaranteed all Havana long tiller; and the other size is a "Deli-ciosos" to retail at ten cents. Louis (ira])osky has returned to head(iuarters. North Second Street, after a month's vacation spent at Atlantic City, with the usual coat of tan and full of energy, which augurs well for the fall cami)aign on "Rovalist" cigars. Atlantic (*itv has been one of the high spots in "Royalist" sales during the summer months. "El Toro" cigars, the five-cent brand of the Porto Rican-American Tobacco Company, distributed locally by Yahn & McDonnell, are showing increased activity since the advent of the radio program on July 30th fea- turing (ins Van, the Thickens Sisters and Vic Arden's orchestra. The radio program is broadcast over N. B. C. sta- tions every Saturday, 9 to 9 :30 P. M. GEORGE M. LEX ISSUES TIMELY WARNING FOR CIGAR MANUFACTURERS ABROAD EORGE M. LEX, secretary of George Zii^er- blatt & Company, has -called our attention to an attempted fraud which a well-organized gang is perpetrating on unsuspecting secre- taries of persons traveling abroad, especially in Eu- rope, and it is hoped the following disclosure will fore- stall further eiTorts in the cigar and tobacco industry. The operators of the "racket" seem to follow closely the list of wt41 known persons sailing for Europe and then by careful inquiries by telephone and other- wise obtain the name of the secretary of the person abroad who has been left in charge of his personal affairs at home. After getting the desired information a cable tele- gram is delivered to the secretary stating that a ship- ment will arrive from Lejune (or some other point) before the person wiio is abroad returns home, and authorizing the secretary to follow the instructions of a person who will get in touch w^itli him later and to make a payment of sums ranging from $700 to $1400. Mr. Lex received such a cable a few days ago and signed by Mr. Zifferblatt, but with his usual keen ob- servation of details ^Ir. Lex discovered several irreg- ularities in the message and refused to fall for the scheme. Persons in the cigar and tobacco industry receiv- ing such telegrams should carefully check the message up with the telegra])h companies before paying out any sum of money, and by getting in touch with their police department may be able to break up the practice. The "Garcia y Vega" brand and the "Monti- cello" brand, featured by John Wagner & Sons, are enjoying a splendid call in spite of depressing business conditions. Ben Lumley, well-known factory repre- sentative, is the man who keeps the orders rolling in. Anthonv Gutierrez, manufacturer of the "Carl- ton" cigar distributed by M. J. Dalton Company, was in town last ^veek calling on his distributor. The "Carlton" has a good call here in the high class stands O. C. Schneider, of the "Bering" factory, was in town last Monday and visited the "Bering" distribu- tors for this territory, Yahn & McDonnell Cigars, 617 Chestnut Street. August 15, 1932. Say You Saw It in The Tobacco Woeild 52nd year We thank you for your patronage It's toasted Your Protection —against irritation —against cou TVhiE IN ON LUCKY STRIKE -^60 moikmmmidft: with the world't finest deuux ort^teOtat, andfamui Lucky Strike featuTt»,h/(rTiy Tuesday, Thursday and Saturday evenmg orer N. B. C. networks. 8 52nd year THE TOBACCO WORLD August 15, 1932 August 15, 1932. THE TOBACCO WORLD 52nd year 9 News From Congress _ MND Fe D E R A L Departments HEAVY program of business legislation which, because of tlie stress of depression, could not be considered during the session just ended, will confront Congress when it reconvenes in Decern! )er. Absorbed in the enactment of legislation increas- ing taxation, providing economies in Government ex- penditures and aiming at the rehabilitation of pros- perity, Coiigress during the seven and one-half months of the session found it impossi])le to give to other sub- jects sufficient consideration to insure their disposal. As a result, in addition to the routine work, such as passing on the appropriations for Federal activities, the next session will seek to dispose of matters which so far have ])een neglected. Among the sulijects which will be brought up next winter are bankruptcy refoim, advocated liy President Hoover, the Attorney General and the business world generally, on which a lengthy report was su])mitted to Congress some months ago by the Department of Jus- tice; price maintenance, in connection with which Representative Clyde Kelly of Pennsylvania has an- nounced he will demand action on his bill; and anti- trust legislation, with a view to relaxing existing stat- utes in such a way as to hasten economic recovery. The closing of the mails to the sending of unso- licited merchandise, approved by the Senate but not acted upon in the House, and revision of practices and authority of the Federal Trade Commission are also expected to come up for consideration. Due to the fact that the next session will expire automatically on March 4, 1933, it is unlikely tliat the entire program can be considered but it is anticipated that the more important of these measures will 1)e selected for en- actment. C?3 Ct3 Ct3 A number of imjjortant invest i,4,(i78 in the name month of 1J):I1, and :5(),74,"),412 in June, 11KJ2. Production l)v classes were as follows: (*lass A — 14,505,181; ("lass B— ;382,i;]l); (lass C-8,783,;345; Class D— 2,682,854, and Class E— 28,646. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCH, Wheeling, W. Va President CHARLES J. EISENLOHR, Philadclrhia, Pa Ex-Pretident JULIUS LICHTENSTEIN, New York, N. Y VicePreiident WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL, New York, N. Y Vice-President II. H. SHELTON, Washington, D. C Vice-President WILLIAM T. RKED, Richmond, Va Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEIN. New York, N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. EXCEL, Covington, Ky Treasurer WM. S. GOLDENBUKG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. \ND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa First Vice-President U. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALI'.KKT FREEMAN, New York, N. Y First Vice-President IKVK.V M. MOSS, Trenton, N. J Second Vice-President AHE JHiOU.N, 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President THE XATIUX.AL AS.SQCIATION OF TOBACCO DISTRIBUTORS r. A. jr.ST. St. Louis, Mo President h. ASiU RY HAS'I.S, iJaltimort-, .NM Vice-President E. W. IIAHKIS, IndianajMilis. Iiid Vice-President J(JNAT11AX VH'OXD. Scrantun, Pa Vice-President GEO. B. SCRAMBLING, Clevtlan.!, Ohio Treasurer MAX JACOBUWITZ, 84 MuntKomery St., Jersey City, N. J Secretary 14 52nd year THE TOBACCO WORLD August 15, 1932 August 15, 1932. THE TOBACCO WORLD 52nd year 15 RETAIL STORE PROBLEMS (Continued from page 12) In enumerating reasons why customers fail to re- turn to tlie store, tlie tliree commonly attributable to the sales lorce are (1) lack of courtesy received during sales transactions, (2) misunderstandings arising from careless and inefficient selling, and (3) misrepre- sentation of merchandise. In-creased good will of cus- tomers is one of the lirst evidences of successful train- ing of personnel. A department-store manager related the following incident, which is an interesting example of how a sales force may be mtluenced. His personnel director called attention to the fact that, notwithstanding the store's rules of exacting a penalty for errors made on charge checks, the record of a group of 100 clerks for the pre- vious month showed thirty-three errors made. The value of accuracy in store service was discussed at the next class meeting, and a prize of $1 was offered to each sales clerk whose record for the month showed no errors in making out sales checks. The clerks appeared to be genuinely shocked ^t the possibilities of loss to the store as a result of their -carelessless in this respect, and the next month's report showed only nine errors. During the months that followed considerable enthusi- asm was aroused over the honor list, and one evening some time later the entire force dropped in at the trainer's home and announced a "surprise party" to celebrate the fact that no errors were reported for the preceding month. Tally cards to check up sales made through sug- gestion are being used in some stores, and several re- ported a decided increase in the volume of sales di- rectly attributable to teaching the sales force tactful methods of making sales to those w^ho are ''just look- ing." A few minutes' talk on how to suggest sales without being overpersuasive may be the means of securing at least one extra sale a day from each employee. In a recent case of bankruptcy a small dry goods store with a force of sixty clerks passed into the hands of an experienced retailer who decided to be personnel director in his own store. As a preliminary step to the education of the sales staff, a month's record was kept of losses which could be directly traced to ignorance or -carelessness on the part of employees. He was un- able to quote the exact figures, but stated that the loss from overmeasurement alone was astonishing. This same retailer said that during one day he heard *'I am sorry we do not have any" given three times in apolo- getic reply to requests for articles which were later found to have been mislaid. Proper education in retailing leads to the right, short, and easy way to sell merchandise and saves time both for the customer and for the store. A knowledge of losses caused by damage to stock as the result of poor care and improper handling may stimulate the sales force to greater effort in the care of merchandise. An interested and capable sales force will also appre- •ciate the value of artificial helps which are used to attract the customer and increase sales. For example, special window displays and departmental sales may profitably be explained to all of the selling force. Call- ing' the attention of the sales force to advertising and community activities may also be an aid in developing a proper spirit of co-operation. Tactful instruction in busmess ctliios loads the employee to a professional attitude tov. aid his work and simplifies problems relat- ing to disci] )rnie and honesty of service. Vocational training in retail salesmanship is said to have been originally adopted in an effort to reduce labor turnover. In some large department stores labor turnover has been found to amount' to 100 per cent, a year. In connection with the necessity in the past for frequent hiring it may be stated that, according to an estimate by experienced retailers, the cost of breaking in each new employee varies from $50 to $200. Dis- satisfaction among employees has been noticeably les- sened in stores which have adopted the uniform policies which are generally a part of the organized educational program. In many cases the store which has a well-conducted training department will find its sales organizatian a satisfactory source of future executives. Under the old policy the typical sales clerk began his employment with an untrained mind and was allowed to drift along in an environment not conducive to mental alertness. Instead of growing to be a person of executive ability, lie merely acquired in the performance of routine duties just enough skill and good judgment to keep him on the job until he was too old to work. Under the new plan of store education individuals are encouraged in de- veloping qualifications required for administrative work. This is to the mutual advantage of the store and employee, since it is usually true that in a retail store an expert with years of experience is more valuable than an expert who must adapt himself to the needs of the establishment in which he has had no experience. Retail stores which have persisted in systemati- cally educating the individual with regard to his ow^n jol) and the progress and policy of the organization awaken interest in the work and change mechanical motions indifferently performed into pleasant duties enthusiastically undertaken. People like to shop where enthusiasm is apparent in the form of courteous help- fulness, which is the natural outgrowth of loyalty to the store. Effect on Customer and Community The results obtained by stores now conducting sys- tematic training courses for their employees have proved that it is worth while from the viewpoint of the retailer. The store must logically take the initia- tive in training its employees to become expert sales- men, therefore this report is concerned chiefly with facts showing that every retailer needs a force trained in a \yay consistent with the highest standards for his par- ticular kind of store. Tlie value of an efficient sales force, however, is not limited to the benefits which the store derives from it. The public will also profit by any systematic training of the sales force. Everyone in a civilized community uses merchandise sold in stores, and there are few who do not come in direct contact with sales clerks. Cer- tainly it would be to the advantage of the retailer and the customer if all necessary information with regard to an article of merchandise could be obtained from the clerk who sells the article. A reliable source of con- structive information is valuable wherever found, and a sales force which understands what constitutes real (luality in merchandise and which is instructed to tell the public what it is purchasing could well be consid- ered a community asset. The retailer with such an intelligent personnel would be careful to carry stock which in reality represented *'the best at the price," the purchaser would become a satisfied customer, and many satisfied customers would grow into a pleased community. On the other hand, when a person is told "Oh, yes; this is pure linen," and that statement is based upon a wrong guess, the store may have as a re- sult an "adjustment," no sale, or a lost customer, and, (Continued on Page 17) EMPLOYEES' SUGGESTION SYSTEMS ANY business organizations have found that the executive and supervisory staff is not the onl}^ source of ideas of value to the company. The close contacts of the workers with partic- ular operations of the business frequently enables them to supply ideas and suggestions of direct benefit to the company. To capitalize upon this practical ex- perience and specialized knowledge, the employee sug- gestion system has been adopted with considerable success l)y a number of organizations. Through some form of organized suggestion plan, workers are en- couraged to look for possible improvements in the op- eration of the business to present their ideas so that, if practical)le, they may be adopted by the manage- ment. Employ ees' Suggestion Systems, a new report published by the Policyholders Service Bureau of the Metropolitan Life Insurance C()m])any, discusses the methods used by representative industrial companies to obtain worthwhile suggestions from their personnel. The report is based on a study of the systems of more than 100 organizations, and describes the outstanding features of these plans. Referring to the benefits of employees' sugges- tions, the study states that "they have been found to result in savings in operating costs, increased pro- duction, extension of business, im])roved operating methods, and better working conditions." The etfect which the actual adoption of satisfactory suggestions has upon the general morale of workers, in tending to make the latter realize that they are holding a rec- ognized place in the business, is considered of more than ordinary importance by a number of organiza- tions. In addition, it is beli'eved that formal sugges- tion plans, by encouraging employees to think, pro- vide an excellent groundwork for training. A limited number of copies of Employees' Sug- gestion Systems are available for general distribution. Chief executives, personnel officers, industrial rela- tixms executives and others interested in this phase of management may secure the report by writing to the Policyholders Service Bureau, .Metropolitan Life Insurance Companv, at One ^ladison Avenue, New York City. WALGREEN SALES DECREASE Walgreen Company reports for July sales of $3,803,101, a decrease of $1,058,773. Sales for the first seven months of 1932 totaled $27,283,282, a decrease of $4,800,254. ( )n July 31st the company had 46(5 stores in operation, against 453 on July 31, 1931. June sales also showed a decrease of $979,534 as compared with June, 1931. AMERICAN COLOROTYPE SALES DOWN Sales of the American Colorotype Company for the second quarter of 1932 totaled $1,166,194, as com- pared with $1,839,482 for the same divisions reporting in the second quarter of 1931. Sales for the first six months of 1932 were $3,081,- 711 as compared with $4,30(;,426 for the same divisions reporting during the corresponding period of the pre- vious vear. CONSOLIDATED CIGAR REDUCES CAPITAL The Consolidated Cigar Corporation has notified the New York Stock Exchange that it would reduce its capital represented bv outstanding common stock from $11,855,684 to $2,500,000. *' BUGLER" NEW FIVE-CENT TOBACCO EEPING up with the economic trend, the Brown & Williamson Tobacco Corporation, Louisville, Ky., has placed on the market a new five-cent package of cigarette tobacco un- der the trade name of "Bugler." At present the new package has only been sup- plied four sections of the country, but the company is expanding production on the brand as fast as possible with the intent of expanding distribution also. The Brown & Williamson Corporation is operating on a twenty-three-hour schedule with approximately 3300 persons on the payroll. A large order for new machinery was recently placed with a Louisville firm. PEOPLES DRUG NET Peoples Drug Stores, Incorporated, for the six months ended June 30th last, reports a net income of $171,976, after charges, depreciation and taxes, equiva- lent after dividend requirements on the 6% per cent, preferred stock to 80 cents a share on 122,737 no-par common shares, as against $247,041, or $1.37 a share on 123,502 connnon shares in the first half of 1931. Net income for the second quarter was $70,483 after charges and taxes, equivalent to 28 cents a share on 122,737 common shares as against $101,493, or 52 cents a share on 122,737 shares in the preceding quarter. Sales for the first six months of 1932 totaled $8,- 185,755, as compared with $8,577,757 for the same period of last year. CHAINS GET SUPPLIES DIRECT According to advice from Washington, direct buy- ing from manufacturers by one hundred drug chains varies from 83 per cent, in photographic supplies to 18 per cent, in tobacco products. Tobacco chains purchase at least 60 per cent, of their merchandise direct from the manufacturers. Trade Notes A. H. Gregg, of Faber, Coe & Gregg, and James Heaney, of the American Cigar Company, were in town last week conferring with distributors in reference to the new agency plans for the distribution and sale of the "La Corona" and other brands formerly manufactured in Havana but which will in the future be manufactured in Trenton, N. J. Gus Tjauber, of the George Ziflferblatt & Company sales force ("Habanello"), has been spending a two- weeks' vacation at Atlantic City, and is expected to stop at headcpiarters this week to confer with Mr. Ziffer])latt, who is expected to be at his desk about August 19t]i after spending several weeks in Europe, together with Mrs. Zifferblatt, wdiere he has been en- joying visits to the many points of interest there, and at the same time obtaining a much needed rest. Mr. Zifferl)latt sailed from Havre, France, for New York City on August 10th. I ^ 16 52nd year THE TOBACCO WORLD August 15, 1932 August 15, 1932. Say You Saw It in The Tobacco World 52nd year 17 TRENTON WELCOMES NEW FACTORY HEARTY welcome was given the new ^'La Corona" factory at Trenton, N. J., last week by the local Kiwanis Club and the Trenton Chamber of Commerce, when a dinner was tendered officials of the company at the Stacy Trent Hotel, following breaking of the ground for the new factory. Among the guests were A. H. Gregg, president of the American Cigar Company; Pat Gorman, an ex- ecutive of the Henry Clay and Bock & Company, and Albert Gold, superintendent of the present American Cigar Company plant in Trenton. The facts that the new factory will be one of the most artistic in appearance in the country, will also manufacture cigars of world-wide reputation, and em- ploy approximately one thousand persons were en- thusiastically stressed by speakers at the dinner. COCA-COLA EARNINGS Coca-Cola Company and subsidiaries report for the quarter ending June 30, net profit of $3,805,317 after charges and Federal taxes, equivalent after al- lowing for dividend requirements on 691,380 no par shares of $3 Class A outstanding at close of 1931, ex- cluding 308,620 shares held by the company, to $3.28 a share on 1,000,000 no par shares of common stock. This compares with $2,318,220, or $1.80 a share on the common stock in the ])reccding quarter, and $3,906,861, or $3.39 a share on the common on al)ove share basis, in the June quarter of the previous year. For six months ended June 30,' net proiit was $6,123,537 after charges and Federal taxes, equiva- lent to $5.08 a share on the common, as compared with $6,438,896, or $5.40 a common share in the first half of 1931. Directors of the company last week announced an extra distribution of 25 cents a sliare on the no par common stock, payable Oetolier 1 to stockholders of record September 14th. CAMCO FILES ANSWER TO SUIT The Consolidated Automatic IMerchandising Cor- poration filed an answer in the Wilmington, Del., Court of Chancery last week to the suit brought against it recently by Saul Erlich, of Newark, N. J., denying many of the allegations of the complainant. Erlich, who alleged that he was a creditor of the corporation in the amount of $1030, and that it was past due him, had his charge flatly denied in the answer. The defendant corporation also denied knowledge as to either the citizenship or residence of the complainant. DOMINION STORES SALES Dominion Stores (Toronto) report i'ov the five weeks ended July 30 sales of $2,161, i:??, as compared with sales of $2,461,669 in the same period of last year, a decrease of 12.1 per cent. For the thiitv-one weeks to the same date sales were $13,818,671, as compared with $15,260,123, for the same period of the previous year, a decrease of 9.4 per cent. DRUG, INCORPORATED, DIVIDEND Drug, Incorporated, last week declared the regular quarterly dividend of $1 a share, payable September J-St, NEW ''BLUE BOAR" DEAL HIGHLY promising deal on *'Blue Boar" smoking tobacco was announced by the Amer- ican Tobacco Company last week, and consists of two packages of ^'Blue Boar" and a high- grade steel pocket knife at a retail price of fifty-nine cents. The deal has already been tried out in selected retail outlets and met with such a ready demand that it was deemed worthy of being offered throughout the country. Arrangements are now being made for delivery of the deal to the trade throughout the country, which will, of course, take some little time. The splendid reputation of ** Blue Boar" as a high- grade smoking tobacco, and the high quality of the knife offered, will no doubt have a splendid effect toward increasing sales of this brand. RETAIL CHEMISTS FILE PETITION A voluntary petition in bankruptcy was filed in United States District Court on Wednesday bv the Retail Chemists Corporation, formerly the Whelan Drug Company, Incorporated, operating a chain of drug stores. Liabilities were listed as $10,635,000 and assets as $5,613,465. The assets consist for the most part in stock of the Whelan Drug Company of Delaware and the Penn- sylvania Drug Company with a book value of $5,426,- 087. The chief creditor is the United Cigar Stores Company of America, to which $10,000,000 is due. BAYUK CIGARS REPORTS Bayuk Cigars, Incorporated, reports net income tor three months ended June 30th, of $402,217, after deduction of maintenance and repairs, and estimated 1 ederal income taxes, etc. After reserves there was a deficit of $48,180. This compares with net income in the second quarter of 1931 of $225,350, equal after re- serves and preferred dividends to seventy-seven cents a share on 91,559 shares of common stock outstanding i^ or SIX months ended June 30, 1932, as computed from quarterly statements, the company showed net loss alter maintenance, repairs. Federal taxes and deprecia- tion, ot $124,328, compared with net income of $103,377, equal to sixty-seven cents a share on 91,559 shares of common stock in the first six months of 1931 +'*i^?^. ^^' ^'^'^^ known as former representative ot tlie L nion Tobacco Company, and later with the A. & H. Irading Corporation, of this city, has become asso- ciated with the Christian Peper Tobacco Company, of ^:^t. Louis, as factory representative for this district, and IS working on ''Listerine" cigarettes and the high- grade smoking tobacco brands of that company. '^Lis- terine" cigarettes, -Wellington" smoking tobacco, etc , are distributed in Philadelphia territory by Yahn & McDonnell Cigars, and they are enjoying a gratify- ing demand. - ^ o & j UNITED STORES EARNINGS The United Stores Corporation for the six months ended June 30th, report net income of $233,785 as com- f^A.n.T^^ "^^ earnings for the first half of 1931 of $547,559. AIR CONDITIONING AIDS CIGAR COMPANY EFRIGERATION installed in a factory for purposes of experimentation has resulted in higher efficiency among the workers, improve- ment in health, decreased absence from em- ployment, and a reduction in labor turnover, the Wo- men's Bureau of the Department of Labor points out in its recent **News Letter." Installed in a Philadelphia cigar plant by the Philadelphia Electric Company to study the effects on production, factory air conditioning was found to re- duce absences from fifty girls to five per half day, thereby increasing both the plant's profits and the girls' earnings. The announcement of the Bureau fol- lows : H. H. Mather, of Philadelphia Electric Company, has studied the savings resulting from the installation of refrigeration in the Philadelphia plant of the Amer- ican Cigar Company. Although these savings are ex- pressed largely in terms of increased production, the i)enefit to the workers is immediately apparent. The study was made in 1930. Refrigeration was required for eighty-five days of the summer. With- out it the company had found that an average of fifty girls per day for seventy-five days would be sick or tired in the cigar making department and Avork only half a day leaving at noon. This left twelve machines idle. With refrigeration, lost time was reduced to an average of five girls out a half day for seventy-five days. The improved conditions were found to increase efficiency so that the proportion of cigars rejected be- cause imperfect was reduced from about 3 per cent, to about 1 per cent. These benefits increased both the plant's profits and the girls' earnings. There was also a reduction in labor turnover bv about one hun- dred girls, as **not so many felt the urge to take jobs as waitresses in summer resorts." Adding these and other savings it was found that the refrigerator equipment in this plant paid for it- self in two summers. **It should be remembered, of course, that the figures are for the cigar making de- partment alone," it was stated. If similar studies were made in the stripping and packing departments, for example, there would un- questionably be additional savings to swell the total. And, again, no attempt has been made to evaluate the general increase in health that has resulted from the comfortable working conditions provided. Pro- duction executives in many industries will do well to weigh this last point. Added to the tangi])le benefits of refrigeration it is a powerful argument in favor of a comfortable plant. RETAIL STORE PROBLEMS (Continued from page 14) Avith frequent repetitions of this occurrence, a dissatis- fied community. The community as a whole is ignorant of the intri- cate technicalities of material which it buys and is will- ing to purchase dependable sales service. In other words, the consuming public will pay more for mer- chandise if there is a good reason for a higher price. As a matter of fact, it is doubtful if the customer ac- tually pays as much for good service as for poor serv- ice. The nation-wide attempt to reduce retail prices through the elimination of waste in distribution is a recognition of the fact that efficiency is economy; and the experience of retailers who are training their sales- ltV»J^tir/svi^ FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco ni«l!o'w and amooth in character and Impart a most palatable flavor HAVORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. ABOMATIZEI. BOX FLAVOIS. PASTE SWEETENEIS FRIES a BRO., 92 Reade Street. Ne>v York men tends to prove that neither the store nor the public pays more for this service, inasmuch as the cost of training is more than olfset by the economies brought about as a result of the efficiency of sales clerks. A customer who thinks that gloves, for example, cost too much is apt to blame the retailer for the high price, without considering the many processes through which the goods passed to the merchant for final dis- tribution. The salesman with a keen appreciation of the retailer's problems may unconsciously do much toward preventing unjust charges of profiteering. One intelligent tliought leads to another, and an honest, highly respected retailer with a well-trained sales force does not lack for tactful means of awakening the com- munity to a realization that delivery of trifling pur- chases and the demand for a number of other unneces- sary services is largely responsible for the high cost of living. The benefit which the public receives from an edu- cated sales force is, of course, the sum total of useful service rendered to customers by the various clerks. A merchant who intends to train his clerks will be likelv to use great care in selecting employees. Given the nc— ^Wl ■■ ■■— •" ■" " ■•^— ,■—.«. — »■ -^i «■ — ■■■^»BII— ■< ■' " ■■ •* > •■^^■••■■•■•l^^^ll- nun iiiiiiiiinimimiimiin PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. After all 'nothing satisfies li ln^ good cigar like^ Fashion Note for the well-dressed cigar: • • WOODEN BOX • • The longstanding pork and beans alliance, the famous Smith Brothers partnership, the life-long friendship be- tween Tom and Jerry — none of these is more inevitable or more lasting than the fondness of a fine, mellow cigar for a fragrant wooden box. WHEN BUYING CIGARS Remember that Regardless of Price THE BEST CIGARS ARE rACXED I> WOODEN BOXES r71|lUfJJJ|iWWliA|tUMiVil^^^^^^^^^^ Volume 52 THE TOBACCO WORLD Number 17 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, SEPTEMBER 1, 1932 Foreign $3.50 **CREMOS" NOW 3 FOR 10 CENTS FFECTIVE Monday, August 29th, distributors of "Cremo" cigars were notified that the wholesale price of this popular brand of the American Tobacco Company had been re- duced to $30 per M less the usual trade discounts. The distributors were also advised that in order that they might commence to sell Certified *'Cremo" cigars at once at the new price, they would be allowed the difference between the new price of $30 per M, and the former price of $38.50 per M, on the stock which they had on hand and in transit as of the close of business August 27th, up to and not more than one month's supply. Also, in order that the retailer may immediately begin to sell Certified ''Cremo" at five cents straight — three for ten cents, where the retailer will co-operate, the distributor will be allowed to cover their stocks of Certified **Cremo" cigars on hand up to one month's additional supply based on the distributor's purchases from the American Tobacco Company. The distributor is instructed to mail report of ci- gars on hand to the American Tobacco Company for credit but not to make any deductions from his remit- tances to cover allowance as check for the net differ- ence in price will be mailed promptly as soon as his report is received and audited. Reports must be re- ceived in the ofl&ce of the American Tobacco Company prior to October 1st, 1932. In order that the consumer may be notified of the change in price as quickly as possible, and inasmuch as the American Tobacco Company is covering both the jobber's and retailer's stock, the jobber has been requested to see that new stickers advertising the new price of five cents straight — three for ten cents is at- tached to every box of Certified **Cremo" cigars in stock at once. The retailer's stock is to be covered only where the jobber's salesmen can secure the co-operation of the retailer in the following manner : When retailer's stock is covered, the salesman must place a sticker on each box of Certified **Cremo" cigars the retailer has on hand reading **5^ straight- 3 for 10^" The retailer must buy an additional quantity of Certified **Cremo" cigars equal to the quantity of his stock that is covered. The salesman must make a showcase placement in each retailer's store and secure the promise of the retailer to continue this showcase display. Salesman must place a window poster showing the new price on each of his retailer's windows. The quality of Certified *'Cremo" cigars will be maintained at all cost, since today more than ever be- ( Continued on Page 18) UNITED CIGAR STORES BANKRUPT HE United Cigar Stores Company of America filed a voluntary petition in bankruptcy on Monday, in New York City, following a meet- ing of the Board of Directors. Liabilities were listed at $9,502,029. The principal liability was said to be $8,515,000 as guarantor for the Cigar Stores Realty Holdings, Incorporated, an affiliate, which also filed a petition in bankruptcy today. A directors' meeting was held today at which a decision was reached to file a voluntary petition. The minutes of the meeting set forth that the company was unable to pay its debts. The parent company listed book value assets of $8,341,634.98. The Irving Trust Company was appointed re- ceiver. The petition contained 618 typewritten pages, one of the longest ever filed here. It listed 810 stores in all parts of the country with their stocks, leases and outfittings. A statement was issued by the parent company saying that losses in the company's realty business during the past month ''went beyond the ability of the company to stand." It was said there was full confidence that ''with the co-operation of the company's creditors" a reor- ganization can be effected. The Realty Holdings concern listed liabilities at $8,701,000 and assets with a book value of $9,811,957. B. F. GOOD, LANCASTER MAN, DEAD Benjamin F. Good, one of the best known leaf tobacco merchants in the industry, passed away at the Lancaster General Hospital, on August 19th, where he had been undergoing treatment for a serious ailment for several weeks. Although Mr. Good had been in ill health for a long time, his death was entirely unexpected and was a great shock to his many friends. Mr. Good was born at Conestoga Center, Pa., in 1854 and entered the leaf tobacco business at an early age, where by hard work and excellent ability he be- came head of the leaf tobacco packing house of B. F. Good & Company, in Lancaster, Pa., fifty-two years ago and continued as head of the firm until his death. Funeral services were held from his late home in Lancaster on Monday, August 22d, with interment in Greenwood (^emetery. He was seventy-eight years old. He is survived by his widow, two daughters and one son, Benjamin F. Jr., who will continue to conduct the i)usiness of B.'f. Good k Company without change. 52nd year THE TOBACCO WORLD September 1, 1932 WAGNER NOT TO DISTRIBUTE BOCK BRANDS OHX AVAGXER & SONS, Dock Street distribu- tors, announced to the local trade, under date of August 11, that they would not distribute the cigars of the Henry ( 'lav and Bock & Company, to be made in Trenton, N. J., and therefore recall their letter of August 1, so kindly accepted by a number of retad outlets, inviting them to become retail sales agent. The Wagner house also announces that in addition to their clear Havana brands, ''Don Sebastian" and Garcia y Vega" (made in bond, Tampa, Fla.) and domestic cigars, they will specialize as heretofore in high-grade imported cigars (made in Cuba). FRANK WILLS STRESSES TOBACCO TAXES Franklin P. Wills, executive vice-president and genera manairer of the G. H. P. Cigar C^ompanv, ad- dressed the ocal Kotary (^hib at a luncheon on August 24 at the Bellevue-Stratford Hotel, and told the guests that users ot tobacco pay more in taxes for that pleas- ure than Lncle Sam collects from anv other source ex- cept income tax. Tobacco is one business, said :\rr. AVills, that has held up magnihcently in spite of the depression. Amer- icans are paying taxes on more than 17,()()0,()(K) cigars every day right now, besides on a huge output of ciga- rettes, pipe and chewing tol>aeco and snuiT. Trade Notes lie knault dgar ( V,mpany, Sheboygan, Wis., lias recently been assisted l)y Milton Wolff in a drive on ±5ayuk cigars in their territory with good results. Louis Cramer, vice-president of Bavuk Cigars Incorporated, in chai-ge of domestic leaf t'obacco pur- chases, has returned to his desk after having spent a most enjoyable vacation in the State of Maine. Mr. Jose].h Wagnor, of John Wagner & Sons left last week lor a sjiorl visit to Hot Si)iings, where he will rest and recupeiate from a severe cold which recentiv necessitated his absence from the office for several days The Chtf-Weil Cigar Company, Richmond, Va., are maintaining their pace of sale of Bavuk cigars in their territory and were recently aided by F. L. Brum- sey, ot the Bayuk sales organization. George Ziffer])latt, of George Zifferblatt & Com- pany, has returned from a visit to jioints of interest m lairope and has plunged right into plans for the fall campaign on his brand, "Habanello." The Royalist" cigar, Graboskv Brothers, Incor- porated, ^orth Second Street, manufacturers, is meet- ing with a splendid demand in the territories where it has been placed, and plans are being laid for expausicn just as soon as conditions warrant. T -n n^?P'' P^P^ tobacco, manufactured by the P. Lorillard ( ompany and distributed in Philadehdiia ter- ritory by \ahn & McDonnell, is meeting with a splendid aemand Ihis is a high-grade smoking tobacco retail- ing at htteen cents a package. siderable activity in those territ ones. Harry Cathn, who is associated with the sales depar ment ot Bayuk Cigars, Incorporated, has re- urned to headquarters after a swing around the coun- try visiting the various Bayuk branch distributing of- hces, and reports a splendid demand for Bayuk brands for bond ^ John Wagner & Sons, are receiving a fine call J)on Sebastian" clear Havana cigars, made in buuu by Arango y Arango, Tampa, Fla., and smokers are commenting favorably on the flap which is being in- sertetl in each box stating that ''over half a century experience with Havana tobacco has convinced me that Spanish cedar is the only container that will re- tain the delicate fragrance and aroma characteristic ot this tobacco, and cigars of our manufacture with- out the traiisj)arent wrap receive mv uncpialified in- dorsement as below." The wrap bears a facsimile sig- nature ot Pancho Arango. September 1, 1932 Say You Saw It in The Tobacco World 52nd year — and raw tobaccos have no place in cigarettes They are not present in Luckies . . . the mildest cigarette you ever smoked w E buy the finest, the very fin- est tobaccos in all the world —but that does not explain why folks everywhere regard Lucky Strike as the mildest cigarette. The fact is, we never overlook the truth that "Nature in the Raw is Seldom Mild" — so these fine tobaccos, after proper aging and mellowing, are then given the benefit of that Lucky Strike purifying process, described by the words— "It's toasted". That's why folks in every city, town and hamlet say that Luckies are such mild cigarettes. "It's toasted" That package of mild Luckies Copr., 19S2, The American Tobacco Co. "If a man writt a belter book, preach a better sermon, or make a better mousetrap than his neighbor, tho he build his house in the uoods, the uorid uill make a beaten path to his door. "— RAI pH WALDO EMERSON. Does not this explain the world-wide acceptance and approval of Lucky Strike? 52nd year THE TOBACCO WORLD September 1, 1932 G. W. HILL INSURED FOR $2,500,000 T has recently been revealed that George Wash- ington Hill, president of the American To- bacco Company, has received an insurance policy on his life in the amount of $2,500,000, and the agent involved is revealed as James Roose- velt, son of Franklin D. Roosevelt, Governor of New York State. The policy is said to be the largest ever written in New England. ^Ir. Roosevelt is connected with the insurance firm of Obrion, Russell & Company, of Boston, and when questioned about the policy he stated that he could not ethically either confirm or deny the report. The policy was distributed among a group of mid- western insurance companies, as no one company de- sired to assume the entire risk. RED LION A REAL CIGAR CENTER A statement issued by Philip H. Dewey, Penn- sylvania State Secretarv of Internal Affairs, discloses the fact that Red Lion,' Pa., produced 128,868,000 ci- gars during the year 1931. Mr. Dewey stated: **Red Lion, a borough with a population of 4757 in the heart of the cigar manufac- turing industry in York County, has a production rec- ord probably unequaled by any place in the United States. The total cigar production w^ould indicate if every man, woman and child in the borough would be engaged in manufacturing cigars, each w^ould produce approximately 27,000 in a year." Mr. Dewey also stated that the town's annual pro- duction would be sufficient to entirely cover a piece of highway eighteen feet wide, a distance of thirty- nine miles. During 1931, 1936 persons in Red Lion were em- ployed in th(} cigar industry and their compensation amounted to $1,317,700. AXTON-FISHER PUSHED TO CAPACITY Since the introduction bv the Axton-Fisher To- bacco Company, Louisville, Ky., of their ** Twenty Grand" cigarette, retailing at twenty for ten cents, the company has been forced to run night shifts and at present is unal)le to get production enough to meet the demand. "Twenty Grands" proved an instantaneous suc- cess and although their distribution has thus far been restricted to a limited territory, the demand keeps in- creasing. Other Axton-Fisher products, such as **Spud" cig- arettes, continue to forge ahead also, and with a large sale for their **Clo^v^l" cigarettes, *'01d Hillside" smoking tobacco, **Himyar" cigarette tobacco and their other brands, the company is enjoying a very suc- cessful business. PORTO RICAN-AMERICAN REPORT The Porto Rican- American Tobacco Company and sul)si(liaiies, including the company's proportionate share of Congress Cigar and Waitt & Bond, Incorpo- rated, report for the quarter ended June 30, 1932, con- solidated net loss of $26,114 after interest, discounts, etc., as compared with net loss of $40,834 in the pre- ceding quarter. For the first six months of 1932, consolidated net loss was $66,948 after the above charges, as compared witli net profit of $104,035, equivalent to 51 cents a share on 203,768 no-par shares of $3.50 Class A stock in the first half of 1931. Trade Notes Gus Lauber, factory representative of the '*Haba- nello" factory, for Cleveland and southern Ohio and New York State, was a recent visitor at headquarters of George Zifferblatt & Company. Mr. Lauber has been enjoying a vacation at Atlantic City, at the Hotel Shel- burne. Recent visitors in town included John L. Mc- Guerty, of ''Romeo y Juliet" factory; Alvaro M. Gar- cia, of the ''Garcia y Vega" factory, Tampa, and "Kid Nichols," of the "Belinda" factory. All were opti- mistic over the outlook for a definite upturn in business in the near future. Yahn & McDonnell Cigars, 617 Chestnut Street, distributors of high-grade domestic and imported cigars, report business on their various brands holding up very well in face of present conditions. They will continue to distribute "Corona" cigars and other brands of the Henry Clay and Bock & Company, which will be manufactured in Trenton, N. J., in the future. The "Mapacuba" cigar, manufactured by Bayuk Cigars, Incorporated, and recently reduced to five cents has won a large volume of friendly smokers who do not hesitate to recommend it to their* friends, which is proven by the splendid volume of sales enjoyed on this brand in the various territories in which it has been placed. Garcia y Vega early in August celebrated their twenty-fifth anniversary of the opening of their Tampa factory, and have been in the business of manufactur- ing clear Havana cigars for a period of fifty years. They also maintained a factory in New York until about eight years ago. Manufacturing activities are now concentrated at Tampa under the direction of Pancho Gonzalez. "Wings," the new ten-cent brand of cigarettes, manufactured by the Brown & Williamson Tobacco Corporation, Louisville, Ky., is enjoying a most grati- fying sale in this territory. Li order to meet the growing demand for its vari- ous brands, the Brown & Williamson Tobacco Corpora- tion contemplates opening a branch factory at Peters- burg, Va. The Louisville plant has been working a night shift for some time. Petersburg has excellent facilities for cigarette manufacturing. JAMES A. POND FILES PETITION James A. Pond, 19^! Myrtle Avenue, Middletown, N. Y., last w^eek filed a voluntary petition in bank- ruptcy, listing liabilities of $5767, and assets of $2908. A voluntary petition in bankruptcy w^as filed in New York last week by Frank E. Fonseca, cigars, 88 University Place, New York City, listing liabilities at $10,000; assets about $7000. September 1, 1932 Say You Saw It in The Tobacco World 52nd year #^ Sn^iteh to enamels Never parched or toasted A BLEND of choice Turkish and -^-^ mild, sun -ripened Domestic to- baccos— Camels are never parched or toasted. Made fresh and kept fresh in the Camel Humidor Pack, Camels are mild and cool-burning. If you haven't smoked a fresh cigarette lately, switch to Camels for just one day, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY Wins/on -Salem, N. C. AM ELS Jtfoffe WilESn — Kepi FRESH Tjon't remote the Camel Humhlor Pack — // is protection against perfumt and powder odors, dust and gsrms. Buy Camels by the carton for home or office. The Humtdnr Pack keeps Camels fresh 8 52nd year THE TOBACCO WORLD September 1, 1932 News From Congress p. 'AND Fed El Departments EPKESSION conditions have had no apparent effect upon our position in international trade and our industries are no more dependent upon exports today for maintenance of production than they were prior to 1921), according to a study just completed by the Department of Commerce. ** Considerable attention has recently been given to the relative importance of export as compared with domestic trade," it is declared in a bulletin embodying the results of the survey. *' Although available statis- tics are not adequate for making more than a rough estimate, the measure commonly used to determine its importance is the ratio of exports to domestic produc- tion. The value of exports is occasionally compared with the total income of the American people, which comprises not merely the value of exportable products but also the cost of construction and services that can- not be incorporated into goods capable of exportation. On this basis, the importance of total exports is rela- tively small, amounting to approximatelv 6 per cent, of the total national income in 1929, and to about 5Vi> per cent, in 1930, the latest year for which income data are available. **The more satisfactory method, however, is to compare exports with the output of agriculture, mining and manufacturing industries plus costs of transpor- tation, which covers in large part the total domestic production of exportable commodities. Exports in the peak year of 1929 constituted a smaller i)roportion (approximately 10 per cent.) of domestic output than at the l)eginning of the present centurv and only a slightly greater share than that immediatolv preceding the World War. ''While exports from the United States have grown rapidly and their character has shifted consider- ably, statistics emphatically reveal that we are not becoming dependent to any'greater degree on foreign commerce for the maintenance of national production. The significant fact is not that our foregn markets are unimportant, l)ut rather that the domestic market pre- dominates. With its abundant resources, the United States has l)eeii able to increase its domestic output very rapidly and has not been compelkMl to obtain from foreign sources an increasing proportion of its con- sumption." * Cj3 Cj3 Anxious to determine whether recent improvement in industry is merely the evidence of seasonal demand, much delayed, or the real ''turning of the corner" precedent to a revival of ])usiness activity, Administra- tion officials in AVashington are closely watching re- ports now being received from all sections of the coun- FwoM OUR Washington BuftEAu 62ZAlqee BuftoiNG try, telling of the reopening of factories and expansion or employment. So far, it has been difficult to evaluate the net result of the recent industrial movement, gains in some lines being offset by| recessions in others, but the gen- eral consensus is that business and industry today are in a more optimistic frame of mind than at any time m the past two years. "Even if the present accelerated demand is only seasonal," one official of the Government pointed out, **it is ])utling many men to work and the money they earn will be spent for things they need, thus putting others to work. If this 'seasonal demand' is fairly evenly spread over the country and continues long enough, therefore, it will grow into a steady revival of busmess. Once improvement gains momentum there will be no stopping it, for all surplus stocks of commodi- ties have long since been disposed of and even a slightly increased demand will necessitate an expansion of manufacturing. ' ' One of the outstanding developments of the past lew days has been the purchase bv one of the steel companies of 50,000 tons of melting steel scrap, believed to have been prompted by an expectancv of early im- provement in the steel trade. The trend of scrap steel is stdl recognized as one of the best barometers of pro- spective conditions in this industry, and steel itself is still considered one of the outstanding industrial barometers. C?3 C?3 Ct3 Neither tax nor tariff will come up for considera- tion during the next session of Congress unless some- thing **not now foreseen" should develop, according to Senator Reed Smooth of Utah, Republican chairman ot the finance committee. Democratic policies with respect to these two mat- ters will not be determined until the November elections show wliether they will be in power during the next achninist ration. If the Democrats elect sufficient mem- l)ers to control the Senate and House in the next Con- gress, it is expected they will defer tariff and tax: revision until after March 4th ; if, however, the Repub- licans wrest control from them next November, it is anticipated that tax and tariff will be vigorouslv agi- tated during the short session. Republican leaders believe that there should be no "tariff tinkering" during the depression period and that consideration of tariff revision should be deferred until the world has climbed out of the slump, when a more rational attitude toward trade barriers may be {Continued on Page 16) September 1, 1932 THE TOBACCO WORLD 52nd year 9 GENERAL CIGAR ASSISTING RETAILER DVERTISING of the General Cigar Company featured on another page of this issue, comes right out and offers a friendly hand to the re- tailer of "White Owl" cigars, which should be appreciated by the retailer under present conditions. The advertisement points out that the retailer of ''White Owl" cigars should not be asked to sell them for less than five cents each, and emphasizes the fact that it is absolutely the same cigar that formerly sold for seven cents. The Wall Street Journal in a recent article stated the General Cigar Company was one of the few com- panies to show net, in the second quarter, ahead of 1931 figures, earning 83 cents a common share, as com- ])ared with 81 cents a share in the second quarter of last year. In the second 1931 quarter the company had to ab- sorb an inventory loss necessitated by a reduction in price of its "White Owl" cigar to five cents on June 15. The better showing, however, has not been due solely to that factor; distinct improvement in earnings has been shown, especially since the beginning of June. In the second half year earnings should be sub- stantially better than the $1.28 a share shown for the first half, and at least equal to a half year's dividend requirements on the common at the present rate of $4 a share annually. The second half of the year is usually better than the first half, due to seasonal factors, the first quarter being always the poorest for the cigar in- dustry in general. It is significant that in three of the last four quar- ters, excepting only the ^larch quarter of 1932, General Cigar has shown improvement over the preceding year; for the four quarters ended June 30, 1932, aggregate net of the com|)any was $2,590,723, or $4.69 a share against $2,r)()0,427, or $4.88 a share in the preceding four quarters, only a slight decline and indicating a surplus over dividend recpiirements at the present rate. The good showing, in contrast with that of most cigar companies, has been due to the success of "White Owl" with over 425,()(K),(K)0 sold in the first year after the price reduction — the largest sale of any single ])rand, and representing about 12 per cent, of all five- cent cigars sold in the period. On its higher priced "Robert Burns," recent price cuts have permitted the company to stem, to some extent, the decline which all cigars in the ten to fifteen-cent class have been feeling. In the first six months of 1932 it had a higher pro- portion of the countrv's total cigar business than in the like 1931 period. PRACTICAL AIDS TO THE INDEPENDENT MERCHANT A small ])ami)hlet entitled "Practical Aids to the Independent Merchant" has just l)een released by the Marketing Service Division of the Bureau of Foreign and Domestic Commerce, Department of Commerce, AVashington, D. C., which contains a considerable amount of information of value to the independent re- tail merchant, and of which they should not hesitate to take advantage. The pamphlet also lists a large number of pam- phlets which have been carefully pre])ared for the use of the retailer, manufacturer and wholesaler. This pamphlet can l)e obtained from your local ))ranch office of the Bureau of Foreign and Domestic <'ommerce, or by writing direct to the bureau at AVash- ington. PENNSYLVANIA PASSES SALES TAX HE SPEICIAL session of the Pennsylvania State Legislature has passed a general sales tax of 1 per cent, on retail sales in the State, except those involving real estate or sales of farmers direct to consumers. The tax was passed over the protest of a multitude of retail merchants throughout the State and is effec- tive for a period of six months beginning September 1. The measure is designed to raise $12,000,000 to $15,000,000 for direct unemployment relief. Just how the tax is to be handled on five, ten-cent and sales un- der $1 is a problem which has not yet been solved. PHILIP MORRIS IN STRONG POSITION An analysis of Philip ]\Iorris & Company, Limited, Incorporated, issued last week by Harde & Ellis, mem- bers of the New York Stock Flxchange, shows a ratio of 28 to 1 of assets to liabilities and cash holdings at the end of 1931, sufficient for more than two years' divi- dend of $1 a share on the 415,4()5 shares of capital stock. The survey points out that the company is one of those which has maintained an unbroken dividend rec- ord and continued to show substantial expansion in its business despite three years of adverse conditions for virtuallv all industrv and business. The balance sheet as of March 31 shows book value of Philip Morris stock of $10.91, exclusive of good will. CONSOLIDATED REPORTS NET The Consolidated C^igar Corporation and subsid- iaries rei)orts net jjrofit for the six months ended June 30 of $540,251, after taxes and all charges, equivalent after dividend requirements on the (iVL' per cent, prior l)referred and 7 per cent, preferred stocks to 51 cents a share on 250,(K)0 no-par shares of common stock. This compares with $1,094,233, or $2.63 a share in the first six months of 1931. For the quarter ended June 30, 1932, net profit was $295,715, after charges and taxes, equivalent to 36 cents a share, as compared with $244,53(), or 15 cents a share in the first quarter, and $015,686 in the June quarter of 1931. NEW CIGAR VENDING MACHINE G. B. Macke, Washington, D. C, has invented a new vending machine to dispense cigars, and plans to introduce the machine in Washington in the near fu- ture. The machine has the ai)proval of the Internal Rev- enue Department and dispenses the cigars from the box. The machine holds two boxes of cigars and keeps them in })erfect condition. The machine also carefullv checks the size and weight of each coin inserted, also the magnetism and density, and is particularly convenient for the cus- tomer. TO MANUFACTURE B. C. TOBACCO New Westminster, B. C., Aug. 25. Arrangements have been completed here, accord- ing to the industrial department of the Canadian Na- tional Railways, for the establishment of a company to manufacture pipe and cigarette tobacco from Brit- ish ( 'olumbia tobacco. The company has 250 acres un- der cultivation near Sumas and has acquired a building for housing the necessary manufacturing equipment. 10 52nd year THE TOBACCO WORLD September 1, 1932 PHULOFAX STRESSES ** LITTLE THINGS If ROi\[ Littletowii, U. S. A., comes another com- munication from the famous retail cigar ex- pert, Phil M. Phulofax. Known as *Hhe re- tailer's friend," Phulofax, whose home office is with Bayuk Cigars, Incorporated, of Philadelphia, has spent years both in the retail business and in studying conditions of the trade. He is at present making a trip throughout the country to obtain new selling ideas, which he will pass along through the advertising col- umns of this magazine, and to check up on the status of the retailor in every part of the United States. ** Little things make big ditf erences, " says Phulo- fax, ''in the cigar business as in any other. For in- stance, have you ever hearkened to the voice of your cash register as the sales were pounded in! Of course the sound is music to your ears, whether it registers like the crash of hash house plates or the tinkle of deli- cate tea cups. But give a thought to the sensitive ear of your customer. How does it sound to him — like the smash of one fender against another when a flivver meets a friend, the dull thud of a hammer as it hits your thumb instead, the sickening shatter of one of your wife 's best glasses — or anything else, in fact, but the rich tone it should have? ' ' Just a minute ! I 'm not going in for art for art 's sake, and I certainly do not pride myself on a musical ear. I can carry a tune, something like 'Dixie' or 'The Sidewalks of New York,' but I never consid- ered myself much of a maestro. It's just a matter of general impressions. I don't mean for a moment that a fine bell will bring in business, or that a plunkety- plunk performer will scare it away, but that sound, which can be so merry, is just one of the little things that makes up the general impression that your store is well kept and smooth running. "All this occurred, or re-occurred, to me here in Littletowm, where I visited two shops as unlike as an old straw hat and a l)rand new Panama — the one sloppy, down at the heel, the other neat and up to scratch — and the keynote to the whole situation was sounded in the two cash registers. One clattered unpleasantly as my money disappeared. The other rang true and mellow, distinctly pleased to receive my hard-earned coin, and, as might be expected, seemed to be getting a lot of use. "Thoroughgoing Frank Keepatit, who owns the silver-voiced machine, said that he gave it fre(|uent attention. 'Call the service man and have it inspected every so often. Keep your ear listening for the con- dition of its throat. No bell will speak sincerely when it's covered witli rust and no business can pile up profit if it's shoddy about even the littlest things.' "That's the stuff, Frank, and you're getting there. Keeping your eyes and ears peeled for every little jar- ring note, or for every possible improvement is a mighty sure sign that you're on your way to better business and bigger profits. I, too, am on my w^ay, sorry that I can't stay longer in these friendly places, but the country is broad and long and there's still a lot of territory to cover before I hurry back to Philadel- phia to tackle the work that is piling u\) on my desk. You'll hear from me at the next stop." WOMAN 102 HAS SMOKED SINCE 15 Placidly smoking her ])ipe, ^Irs. Abbie Ilolman, pioneer, of Lincoln, Kans., celebrated her one hundred and second birthday on August 24. Mrs. Holman has smoked since she was fifteen years old. She has never talked over the telephone, doesn't like the radio, and has ridden in an automobile only twice. SEVEN MONTHS WITHDRAWALS FOR CONSUMPTION ^. First 7 Mos. -{-Increase ^i^ars: Cal. Yr. 1932 Quantity Class A— U. S. . . 1,969,968,705 — 130,975,225 P.R. .. 43,853,500 — 40,300,055 P. I. ... 91,972,961 + 591,880 Total 2,105,795,165 170,683,400 Class B U. S. . . P.R. .. P. L . . . 31,965,048 141,000 364,229 103,376,316 988,250 315,645 Total 32,470,277 104,680,211 Class C U. S. . . P.R. .. P. L . . . 491,732,064 2,187,550 156,412 305,729,226 850,780 137,232 Total ;. 494,076,026 306,717,238 Class D U. S. . . P. R. . . P. I. . . . 30,722,767 2,700 2,626 30,728,093 19,846,091 29,900 54 Total 19,876,045 Class E U. S. . . P.R. .. P.L .. 1,798,653 19,085 + 3,832,449 1,500 14,104 Total 1,817,738 3,819,845 Total All Classes: U.S. .. 2,526,187,237 — 563,759,307 P.R. .. 46,184,750 — 42,170,485 P.L ... 92,515,312 -f- 153,053 Grand Total . . . . Little Cigars: U.S. . P.R. . P. I. . . . 2,664,887,299 168,085,227 2,050,000 — 605,776,739 — 41,619,387 — 2,950,000 Total Cigarettes: U.S. . P.R. . P. I. . . 170,135,227 . 61,431,555,600 2,694,700 932,347 — 44,569,387 8,700,499,348 — 3,835,300 — 392,563 Total Large Cigarettes: U.S. . P.R. . P. L . . . 61,435,182,647 2,120,077 303,000 1,000 2,424,077 8,704,727,211 1,336,655 — 657,000 — 700 Total 1,994,355 SnuflP(lbs.): All U. S Tobacco (Mfd.): U. S. (lbs.) . . . P.L «•«•••• 21,589,297 — 2,478,580 183,136,899 — 8,410,871 427 — 251 Total 183,137,326 — 8,411,122 September 1, 1932 Say You Saw It in The Tobacco World 52nd year 11 you say IOC? Yes. I saidlQC! DEL SMOKING TOBACCO NEW ORGANIZATION FOR CIGAR MANUFAC- TURERS IGAR manufacturers throughout the country were recently mailed a letter outlining plans for a new organization to be known as the **U. S. Cigar Manufacturers Association," with headquarters at 1225 Broadway, New York City. The letter was signed by Edward Hirschberger, sec- retary of the association, and who has been associated with the cigar industry for many years, and reads as follows : **We are enclosing herewith application for mem- bership in our Association, which was recently organ- ized under the guidance and direction of Louis Dorf- man, Esq., of 2 Lafayette Street, New York City, who is the General Counsel and Advisor of the Associa- tion. The principal objectives of the organization are as follows: ** First: Proper representation in the creation and guidance of State and Federal Legislation so as to preserve and protect the best interests of the Cigar Manufacturing industry. * * Second : The maintenance of price and equaliza- tion of sales. ^* Third: The elimination of unfair competition. '^Fourth: Minimizing use of ambiguous advertis- ing matter. "Fifth: Constructive educational campaign con- cerning the fallacy of shipping goods on consignment. "Sixth: Regulatory measures necessary in deal- ing with the cut-rate dealers and racketeers in the re- retail industry. "Seventh: Establishment of Interchange Bureau for the purpose of gathering credit and policy infor- mation for the guidance of members. "The first general meeting of the Association will be held in the very near future and notice of said meet- ing will be sent, in due season, to the membership. The annual dues will be fixed on a sliding-scale, but shall not in any event exceed Fifty ($50.00) Dollars per annum. The schedule of dues w^ill be fixed by the membership at its first meeting. It is hoped that by fixing the maximum amount of annual dues at Fifty ($50.00) Dollars, which is very nominal indeed, a very substantial proportion of the Industry will enroll. "All those who make application for membership in the Association may avail themselves of the serv- ices and benefits to be derived, details of which will immediately be sent to each applicant, upon the re- ceipt of a signed application. "You will appreciate that, in order to realize the objectives of this organization, the diligent and hearty TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES <^^> JESSE A. BLOCK, Wheeling, W. Va President CHARLES J. EISENLUHR, Philadelphia, Pa Ex-Preiident JULIUS LICHTENSTEIN, New York, N. Y Vice-President WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL. New York, N. Y Vice-President H. H. SHELTUN, Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City „,,. Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN, New York. N. Y First Vice-President IRVEiV M. MOSS, Trenton. N. J Second Vice-President ABE BROWN, 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN ....President SAMUEL WASSERMAN Vice-President THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS C. A. JUST, St. Louis. Mo President E. ASBURY DAVIS, Baltimore, Md Vice-President E. W. HARRIS, Indianapolis. Ind Vice-President JONATHAN VIPOND. Scranton. Pa Vice-President GEO. B. SCRAMBLING. Cleveland, Ohio Treasurer MAX JACOBOWITZ, 84 Montgomery St., Jersey City, N. J Secretary NEW JERSEY JOBBER TO DROP CIGARETTES An annonncement l)y the South Jersey Tobacco Company, tobacco distributor, of Blount Holly, N. J., states that that firm will discontinue the jobbing of cigarettes in the near future. No definite date for the discontinuing of cigarettes was stated, but ^Ir. Warrick, senior partner of the tirm said tJiat cigarettes would be discontinued because there was no longer any profit in those items for his company. cooperation of every member is necessary. It is sin- cerelv hoped that you will join-up without delay. *''The immediate return of this application prop- erly signed will entitle you to the full use and iKMietit of the services offered l)y the Association and at the same time enable the organization to function in the most expeditious manner possible, which of course will enure to our mutual benefit." 12 52nd year THE TOBACCO WORLD September 1, 1932 RETAIL STORE PROBLEMS So many persons are unaware of the many aids to business which have been carefully prepared by the United States Government, and so ynany of those tvho are aware of these facilities fail to take advantage of them, that ive are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) EDUCATION OF A RETAIL SALES FORCE {Continued from previous Issue) At one time little more was expected of a store clerk than that he be al)le to find the article of mer- chandise requested and read the price tag attached to it. The public attitude toward "just clerking" is being changed by the retailer's growing tendency to employ no one who has not a good preliminary education or who fails to show evidences of natural ability to indi- cate that he can be store trained into a techni-callv edu- « cated salesman. AVith this condition generally prevail- ing, the store will attract the best type of ]3erson for selling, and the trained, expert sales clerk will be ele- vated to a position consistent with his increased value to the retailer, customer, and connnunity. Methods of Instruction Tn a small store the proprietor, manager, or some member of the firm will find many opportunities for controlling the training of the employees. There the educational work can lie conducted quite as systemati- cally and in many cases more successfully than in the large dry goods, clothing, and department stores. The small store can provide sales demonstrations and con- ferences at regular intervals to develop economical tendencies, enthusiasm, loyalty to the store, and gen- eral efficiency in salesmanship. If the organization is not too large to make it possible for an executive to supervise personally the training given, the results may often prove more effective than tlie system established in a store which must hire an expert from the outside. The small store can carry out much the same training as is given to one personnel group in a large institution. Which type of store has the greater need for training its employees and the greater success in developing efficiency as a result of the educational program estab- lished depends upon many things, including the type of clerks employed, jwrsonality of the director, method of training decided upon, and the zeal and determination, with which ** store education" is undertaken. One of the newest develo]iments in retail sales- manship training is the ])lan l)y which small stores are enabled to eoo])erate and secure Tor shoi't ])erio(ls the services of expert ])ei's()iin(»l su])ervis()rs at a relatively small expense. This i>lan is likely to be ])articularly satisfaeloj-y lo retailers who have within their stores one or moie sales clerks ])artienlarly (jualified to con- tinue the woi'k hegnii by the visiting ex])ert. The lai'.sre stores have (juite gentM'ally recognized the need of are subject to revision until published in the 'annual report) : 1931 Products Cigars (large) : Class A Nq Class B .No. Class C No. Class D No. Class E No. Total 478,900^9 Cigars (small) x\o. ^^^^l^^M ( igarettes (large) . . .No. 473,081 Jidy 351,843,340 7,223,013 111,970,598 6,877,418 986,480 1932 294,572,930 4,398,593 58,270,112 3,732,601 266,031 _361,240,267 "^"H^SpBo 167,615 9,534,022,443 2,437,112 24,296,142 Cigarettes (small) ..No. 10,699,528',523 ^nuft, manufactured . lbs. 3 407 519 Tobacco, manuf 'd. . . lbs. 27i253,'73i Note: The above statement does not indudcMcax stSent. "^^«^'"^^^^'«» ^« «hown in supplemental of 3n\yT^'^''^ Wodxx.U from Puerto Rico for the month Products Cigars (large): Class A No. Class B No. Class C No. Class E No! Total " Cigars (small) No. ' Cigarettes (large) ...No. Cigarettes (small) ...No. 1931 July 10,771,710 83,500 286,314 500 1932 8,439,000 5,500 139,500 11,142,024 8,584,000 300,000 60,000 __________ 400,000 the mo'Xl'lX:"'*' "'"" "" ^''""Pl-'^^^l^^i^^^ • ••••>• 1,020,000 Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No! Total Cigarettes (small) ...No. Tobacco, manufact 'd . lbs. 1931 July 17,462,935 132,910 38,356 830 2,516 1932 12,596,080 97,143 14,776 100 7,700 17,637,547 12,715J99 345,710 180 196,990 33 Note: Quantities of tax-paid products shown in above statements are indicated bv stamp sales for the month. Comparative Statement of Internal Revenue CoUections for the Month of July Sources of Receuue 1931 1930 Cigars .^1,426,095.38 $976,51^2.01 ngarcttes 32,103,233.88 28,605,437.51 09 ^)l^i"ff 613,353.43 "^'issiSaii? 1 obacco, c h e w i n g and smoking 4,905,962.52 4,373,873.67 Cigarette p a p e r s and ,^. tiibes 170,325.93 102,483.53 ^Miscellaneous, relating to tobacco 1,902.69 (( Oh Yeah? BUT SCIENCE SAYS O. G. IS THE BEST CIGARETTE »> •MlWf H,»MOER.<- In 75 repeated tests made of four leading cigarette brands . . . measuring the heat con- tent of each cigarette by the Calorimeter method ... it was shown that old cold is from 112 to 136 B.T. U's. COOLER than the other brands. That^s why O. Gs. are cooler and do not scratch the throat or taint the breath. © P. Lorillard Co., Inc. PURE TOBACCO • NO ARTIFICIAL FLAVORING "BEST OF THE BEST" Manufactured by A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Kev West, Florida UNITED CLOSING UNPROFITABLE OUTLETS Many l)i-ancli stores of tlie United Citcar Stores (\)m])any have been lecently closed, due to l)usiness eondilions, and it is i-e))()i"ted that they will continue to close those stores which are not oj)ei'atin^ at a prolit. Thirty stores are reported to liave been closed in greater New Voi'k City, Newark and Paterson, X. J., and other stores also in other ]>ai'ts of the country. As the stores are still under lease by the I nited ( V)ni])any, they are being advertised for rent by that company. 14 52nd year THE TOBACCO WORLD September 1, 1932 BETAIL STORE PROBLEMS (Continued from page 12) gestion, types of customers, manner of approach, dem- onstration, and sales talk. 3. Business arithmetic, in which problems are taken directly from the business. 4. Business English. 5. Health and hygiene. — Proper home conditions, care of the skin, nails, teeth, feet, hands, and princi- ples of correct eatine: and sleeping. 6. Appearance. — The effect, of the general ap- pearance, including cleanliness and the type and con- dition of dress. 7. Memory. — Value of memorizing the names of regular customers and the principles of developing memory. 8. Voice, speech, and manner. — Principles of cor- rect usage, and development of native ability. 9. Local geography. — Correct manner of giving directions. 10. Elementary economics and sociology. — Prob- lems, functions, and duties of the retailer in partic- ular. 11. General store policy. — Statement of the store's attitude in regard to customers, returned mer- chandise, care of merchandise, mark up and mark down, attitude and knowledge of competitor's activi- ties, and attitude toward employees. 12. Store routine. — Sales checks, handling of cash registers, signals, call systems, cash and bundle car- riers, etc. 13. Store organization. — Relation of the various departments and the relation of the sales clerk to the floor manager and buyers. 14. Special store problems. — Specific require- ments of various departments, special and seasonal situations, etc. Specific Outlines As previously stated, the outlines given are not designed to represent model courses but are submitted as examples of practical plans in actual use. They have been selected from considerable material sub- mitted by retailers in large stores who vouch for their effectiveness in producing good results. Some of the following suggestions may be successfully adapted to the needs of the small store and specialty shop: Elementary Salesmanship (Compulsory) History of store: Growth to present organization. Principles upon which the organization is built. (Policy to customers and to store members.) Cost of training. Selling cost of department. Selling cost of sales clerk. Store's ideal. Store's conduct (definite recognition of what consti- tutes real courtesy to shoppers and coworkers). Telephone courtesy. Store routine. Advanced Salesmanship (Elective) Conference 1 : Studying - the customer — No two customers are alike. The method of sale depends on the kind of customer. Methods of handling may be adapted to cue given by cu'stomer's attitude (customer's actions, expressions, dress, w^alk, remarks, etc.). Points in opening the sale — 1. Securing the customer's attention by prompt and pleasant approach. 2. Gaining confidence by brisk and business- like manner used in ascertaining exact needs of customer. 3. Arousing interest by showing merchandise enthusiastically (featuring its selling points and showing ways in which it can be used). 4. Creating desire without talking too much. 5. Inducing customer to act. (Truthful, con- vincing statements may help an undecided shopper.) Closing the sale — Ways of keeping the customer thinking of the advantage of owning the merchandise dis- played. Necessity of making friend for store and sales clerk by leaving pleasant thoughts in cus- tomer's mind. (Repeat customers result from pleasant associations as to merchandise, serv- ice given, and personality of salesman.) Conference 2: Customers' similar traits — Certain instincts are a part of every customer, and a knowledge of hu- man nature is a necessary part of good sales- manship. 1. Self preservation: Study of customer re- veals what he is fighting for (social esteem, money, education, etc.). 2. Possession : People are reluctant to part with what is once in their possession (gar- ments tried on, merchandise sent on ap- proval). 3. Vanity: People may express vanity in pe- culiarities of dress, manner, or speech. Methods of using the instinct of vanity (prompt approach, addressing, by name, paying close attention and showing a de- sire to please). 4. Companionship. (Method of using instinc- tive desire to be attractive.) 5. Parental (father and mother love) : Rec- ognition of this instinct often makes sales. 6. Imitation: Stvle is based on the instinct of imitation. Methods of indirect appeal to this instinct. Conference 3: Types of customers — How to vary selling methods to suit customers who are **just looking," timid and sensitive, in a hurry, fussy, undecided, buy- ing for wife or husband, foreign, bargain hunt- ers, etc. Conference 4: Knowledge of merchandise — How to create in the customer a desire to own the goods. A thorough knowledge of the merchandise is necessarv in order to answer questions, meet objections, and appeal to the customer's need. Sources of information for merchandise knowledge (merchandise itself, experienced salesmen, books, magazines, etc.). Turnover — What is turnover! Relation of stocks and gen- oral efficiency to the rate of turnover. Display of merchandise — Principles of proper display. (Continued on Page 18) September 1, 1932 THE TOBACCO WORLD 52nd year 15 UNFAVORABLE CONDITIONS IN THE CUBAN TOBACCO TRADE T IS estimated by the National Commission for the Defense of the (Cuban) Tobacco Industry that the 1932 tobacco crop will be greatly re- duced, states American Consul Harold B. Quarton in a report released by the Tobacco Division of the Department of Commerce. Production in the Vuelta Aba jo zone will show a reduction of 55 per cent, as compared with the 1931 crop ; in Semi-Vuelta, 78 per cent., and in Partido, 33 per cent. The totals for the zones mentioned in tercios of approximately 100 pounds are as follows: 1931 1932 Vuelta Aba jo 195,136 87,925 Senii-Vuelta 35,872 7,906 Partido 18,629 12,552 Total 249,637 108,383 Only sample bales of the new crop of Vuelta Abajo have l)een received in Habana, which, when tested, gave unfavorable results. In Remedios, while there is a certain proportion of very good tobacco, the crop in general is small and the quality only fair. The same applies to Vuelta. Few purchases in 1932 of Vuelta Abajo or Reme- dios have been made. According to reports, a good quality of Remedios tobacco can be bought cheaply, both in matules and in farmers' bales. It is rather late to obtain large quantities of matules. The yield of clean classes is not large, which indicates an even- tual shortage of first and seconds will occur if business improves. The greatest activity in the leaf market is in Par- tido Rezagos and wrappers, which are in demand for the local cigar factories and for American tobacco manufacturers. The Partido crop, although small, is regarded as being fairly good in burn and colors. Only those growers who had resources at their command, however, have any quantity of suitable wrappings for sale. Four or five large tobacco houses in Habana, packers and dealers in Partido tobacco, advance money annually for fertilizer and to assist growers, and, when the tobacco is harvested, it is turned over to these houses to be packed. They either buy the to- bacco in bundles before it is packed or take it for the joint account of packer and grower. The houses en- gaged in this business have had poor financial returns the last few years. Those growers who have had suf- ficient assistance have fairly good tobacco, but the farmer with no resources has been able to harvest lit- tle or no crop. Since business in cigars is unfavorable, both in Cuba and in the United States, the demand is smaller than usual but supplies are limited due to the pro- longed strike of cigar makers. Those manufacturers who require Rezagos and wrappers are buying through their local representatives. Packers of Partido, aware of the depression, quoted very, reasonable prices at the beginning of this year, and this has contributed to the easy disposal of their main stocks. The Seco, or best portion, usually taken by the Clear Habana manufacturers, is sold first. The Fino, or the portion that is undesirable for the local manufacturers and the Clear Habana man- ufacturers in the United States, is considered of small value, but is always the largest part in quantity of bales. It is the Fino which is generally left over each year. The Rezagos and. Seco must be classified and sold at high price sbecause the market is becoming more and more unfavorable for Finos. BRAINS GO BEGGING HE Philadelphia Technical Service Committee are conducting without cost to anyone a clear- ing house for technical employment. Only men who are definitely known to be seeking employment and who fit the particular requirements are referred to the employer, their records first being sub- mitted for consideration. ''Brains are going begging," an analysis of the 946 men whose applications are on record show the following professional classifications: 15 Architectural 88 Chemical 214 Civil 182 Electrical 48 Structural 10 Industrial 355 Mechanical 20 Metallurgical 14 Miscellaneous These men have had experience in 115 varied occu- pations, in 200 diverse industries, and altogether in- clude seventy different types of engineers. The committee has the co-operation of twelve Na- tional Engineering Societies and is associated with the State Employment Commission of Pennsylvania. To avail oneself of the choice from this wide array of tal- ent, all that is necessary is to write the P. T. S. C. care of the Engineers' Club of Philadelphia, 1317 Spruce Street, or 'phone Pennypacker 5234, and a representa- tive will call. All coDomunications are confidential and without any obligation. DEISEL-WEMMER-GILBERT EARNINGS The Deisel-Wemmer-Gilbert Corporation reports for the quarter ended June 30 net profit of $73,542 after charges and Federal taxes, equivalent after dividend requirements on 7 ix^r cent, preferred stock to 20 cents a share (par $10) on 216,785 shares of common stock. This compares with $70,469, or 19 cents a share on 216,410 shares, in the preceding quarter, and $171,310, or 59 cents a share on 238,095 shares in the June quar- ter of 1931. For the six months ended June 30, 1932, net profit was $144,011, after charges and taxes, equal to 39 cents a share on 216,785 common shares, against $326,678, or $1.11 a share on 238,095 shares, in the first half of the previous year. The United States demand for high grade wrap- pers is small. As fewer high grade cigars are being sold, the orders are mostly for inferior wrappers for use in cheroots and cheap cigars. Exports of Cuban tobacco during the first six months of 1932 amounted in value to only $4,194,523, compared with $7,359,819 during a similar period of 1931, and $9,275,3r)r) in 1930. Tobacco merchants esti- mate the sales to the Fnited States for the full year 1932 will not exceed $8,400,000. The total exports of tobacco to all countries during the first semester of 1932, amounted to only $5,930,131 as compared with $13,225,014 during the first semester of 1931. The principal decrease was in cigars; only 3,390,184 were sold in the first six months of 1932, against 26,152,934 in the same period of 1931. The United States took approximately two-thirds of all Cuban exports, most of which were in the form of stemmed tobacco. 16 52nd year THE TOBACCO WORLD September 1, 1932 1931. JULY 1 STOCKS OF LEAF UP T0CK8 of leaf tobacco in the United States owned by dealers and manufactnrers amounted to 2,238,720,000 pounds on July 1, 1932 com- paiM^d with 1,914,719,000 pounds on Julv 1, This represents an increase of 324,00i,000 pounds over the stocks of a year ago. From April 1, 1932 to July 1, 1932 total stocks decreased 135,041,000 pounds, while during the same period of 1931 the de- crease amounted to 236,059,000 pounds. Stocks of flue-cured tobacco on hand Julv 1, 1932 were 745,207,000 pounds, compared with 676,752,000 pounds on July 1, 1931. This is an increase of 68.455,- 000 pounds. During the second quarter of 1932' flue- cured stocks decreased only 100,435,000 pounds, whereas the decrease during the same period of 1931 amounted to 154,595,000 pounds. Stocks of Types 11, 12 and 13 were higher than thev were a year ago and stocks of Type 14 were slightly lower. The detailed report on flue-cured tobacco shows about the same proportion of tobacco in the various groups as on April^ 1, 1932. Stocks of fire-cured tobacco are reported as 218,- 403,000 pounds on July 1, 1932, about seventeen mil- lion pounds higher than on April 1, 1932 and al)out twenty-five million pounds higher than stocks a year ago July 1. Vii-ginia fire-cured. Type 21, reported as 36,243,000 pounds, shows an increase of about three mdlion pounds over stocks of July 1, 1931. Kentucky and Tennessee fire-cured. Typos 22 and 23 combined, show total stocks on July 1, 1932 of 173,955,000 pounds compared with 155,546,(X)0 pounds on July 1, 1931. Stocks of Henderson stemming, Type 24, amounted to 8,205,000 pounds on July 1, 1932, compared with 4,212,- 000 pounds a year ago. Burley stocks were about 151 million pounds higher on July 1 than they were a year ago. The July 1, 1932 repoit shows 651,166,000 pimnds on hand com- pared with 500,042,000 pounds on hand July 1, 1931. The decrease in Burley stocks during tlie second quar- ter of 1932 was about fifty-one million pounds com- pared with a decrease of sixty-eight million pounds in 1931 during the same period. The detailed report by groups of grades shows the ])ulk of the Burley stocks in the B, C and X groups with more than half of the total reported in the B group. ^laryland tobacco stocks were nearly double those of a year ago The report shows stocks of tliis type to be 21,677,000 pounds. On July 1, 1931 thev amounted to only 11,756,000 pounds. A correction iii the April 1, 1932 report shows stocks of this tvpe as 19,559,000 pounds on that date. The detailed report shows that the increase in stocks between April 1 and July 1 of this year is principally in the X group. One-sucker stocks on July 1, 1932 amounted to 37,495,000 pounds or a])out three and one-half million pounds less than on July 1, 1931. Green River stocks reported as 36,952,000 pounds on Julv 1 were nearly eleven million pounds higher than stocks of a year ago. Virginia sun-cured stocks were reported as 4,207,000 on July 1, M)'A2. Miscellaneous domestic stocks w^ere reported as 2.551,000 pounds and foreign grown ciga- rette to])acco stocks (other than cigar leaf. Type 90) were reported ns 80,597,000 pounds on July l,'l932. July 1 Cigar Leaf Tobacco Stocks Stocks of Amoiican-grown cigar filler types, in- cluding Poil(. Kican, amounted to 201,869,000 pounds on July 1, 1932 compared with 167,936,000 pounds on July 1, 1931, an increase of 33,933,000 pounds over the SOUTH CAROLINA TOBACCO PRICES UP AST WEEK tobacco prices shot up fifty cents, to $6 per hundred pounds on the South Caro' liiia and North Carolina border markets. At Fairmont, X. C, the market opened 50 cents to $1 stronger, with sales estimated at 400,000 pounds at an average of approximately $12.25 per hun- dred, as compared with $8 and $9 the first day or so of the season. doo^^T^''^.^"' ^^- ^•' i*cpoi-ted estimated sales of $3Jo,000, With the price averaging from $12 to $13 a hundred. Mullins, S. C, reported the heaviest sales since the market opened. Prices on the better grades were up $4 to $6 a hundred over the previous davs, wdth all grades sharing the general advance. A larger percentage of second curings were of- fered. The amount of sales was not estimated as busi- ness proceeded briskly. An increase of 20 to 30 per cent, in prices for all grades was reported at Dillon, S. (\, Avhere the day's sales were estimated at approximately 65,000 pounds at prices ranging from $11 to $12 a hundred. News from Congress (Continued from page 8) anticipated among those nations which now are doing everything in their power to keep imports at a mini- mum while, at the same time, seeking to build up an export trade. Tax legislation is not to be taken up by the Republi- cans until it has developed how the Revenue Act of 1932 w^orks out. While it is admitted there are pro- visions in that legislation which could avcU be amended. Republican leaders are reluctant to bring up the ques- tion and open the way for a recurrence of the bitter controversy ^vhich was w^aged over taxes last session. holdings of the previous year. All filler types show an increase in stocks except Gebhardt and Porto Rican ; Gebhardt shows about a million-pound decrease and Porto Rican a decrease of about 1,500,000 pounds. The cigar binder types show an increase in stocks on July 1 of about twenty-two and one-half million pounds over the stocks of a year ago July 1. The total stocks of binder types were reported as 210,423,000 pounds on July 1, 1932 and 187,841,000 pounds on July 1, 1931. Binder type stocks increased during the sec- ond quarter of 1932 about three million pounds, the same as the increase during the second quarter of 1931. The detailed report shows that of the total stocks re- ported 4,360,000 pounds are of wrapper quality, 79,- 738,000 pounds are binders, 9,675,000 pounds are fill- f rs, and 116,433,000 pounds are stemming or X group tobacco. Shade-grown wrapper stocks of Connecticut, Geor- gia and Florida, Types 61 and 62, were slightly lower on July 1, 1932 than on July 1, 1931. Total -^hado stocks were reported as 14,336,000 pounds. Of this total 8,516,000 pounds were reported in the A group as wrappers, 5,179,000 pounds in the B group as bind- ers and the balance in the C, X and S groups. For- eign cigar leaf stocks reported as 13,837,000 pounds were about a million pounds low^er than on July 1, 1931. September 1, 1932 Say You Saw It in The Tobacco World 52nd year 17 DRUG CHAINS OPERATING COSTS 27% CCORDING to an analysis of drug store chains in the United States, by the Bureau of the Census, from 1930 census statistics, chains of drug stores have an average turnover of five times a year and their average operating cost is more than $27 for each $100 of sales. The Bureau's figures show that 249 chains, hold- ing 3513 individual stores, were in operation during the last census count, and that these chains handled a \'olume of sales amounting to $312,301,000. They em- ployed more than 31,800 full-time workers and in ex- cess of 1500 others on a part-time basis, the total pay roll for the year examined having been $41,980,000. Of the total number of chains, eighty companies operated stores without soda fountain and lunch de- partments. The analysis explained that the statistics disclosed wide variation in business turnover between stores containing fountains and lunch bars and those operating strictly in drugs and sundries. The chains combined spent $44,356,000 in operat- ing costs other than for payroll which made their total operating costs aggregate $86,337,000. The bulk of the expense aside from payrolls was traced to rental cliarges, and the Bureau found the average rent had cost $7.43 per $100 of sales, an average reached on computation of rental payments for 3451 stores whose premises were wholly leased. About 77 per cent, of all chain drug stores are lo- cated in cities of more than 100,000 population, the re- l)ort shows. Of the remaining 23 per cent., 14 per cent, are in cities between 100,000 and 30,000, 6 per cent, were in cities between 30,000 and 10,000 and only 3 per cent, were in cities having less than 10,000. ^lore thjni 60 per cent, of the chain units were found to be in the areas surrounding Chicago, New York, and the Pacific Coast cities, the numbers rang- ing in that order of the cities. The remainder was found, the Board announced, to be scattered *' quite uniformly" ihroughout the country. Four chains do an annual volume of sales in ex- cess of $9,700,000 each, their combined business amounting to more than that of all the other 245 chains combined. The seven largest chains do nearly two- thirds of the total business of all chains operating stores with fountains. Although the great majority of chains are local in territory, and operate about four-sevenths of all the stores, their combined sales are less than those of the fourteen sectional and national chains. These four- teen chains, with 1560 stores, do a coml)ined business of $180,283,809, or about 58 per cent, of the total chain store business, while 235 local chains, with 1953 stores, show aggregate sales of $132,017,912. Of the chains operating stores without fountains, local chains greatly outnumber the sectional and na- tional chains in number of stores and in sales. A local chain is any combination of four or more drug stores h)cated in and around one city, owned and operated centrally. A single drug store is classified as a single store independent ; two or three drug stores operated by the same proprietor are classified as two-store or Uiree-store independents. A sectional chain is a chain operating drug stores 111 several cities in the same section or geographic divi- sion of the country, and a national chain operates in niore than one section. When the census was taken (licrc wore too few national chains to permit of their 1 * ixMug shown separately in this report, although since then some of the sectional chains have expanded into new territory and have become national chains. Olassified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco melCoMr and mmooth In character and Impart a most palatable flavor fUVORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BMTUN. AKOHATIZEB. BOX FLAVOBS. PASTE SWEETENEKS FRIES & BRO.. 92 Reade Street. Ne>v York J TOBACCO INDUSTRY SHOWS GAINS IN JULY MAGAZINE ADVERTISING XI?KXJ)ITUHE8 for advertising by the tobacco industry in national magazines and national farm nuigazinesduring July amounted to $453,- 177, an increase of three per cent, over the tig- ureof $439,807 for July a year ago. National magazines were ahead 1.9 per cent, with $417,527 and farm maga- zines were ahead 17.8 per cent, with $35,650. Of the total in national magazines, $320,033 was spent for cigarettes, $20,580 was spent for cigars, and $76,914 was spent for manufactured tobacco and smokers' sup- plies, according to figures compiled from National Ad- vertising Records by the Business Survey Department of Dorrance, Sullivan & Company, New York adver- tising agents. For the first seven months of the year the cumu- lative total in national nuigazines amounted to $3,615,- 475, an increase of 8.5 per cent, over $3,331,898 ex- pended during the corresponding period of 1931. The farm magazine total for this period was $266,150, ahead 20 per cent., and the total for both media was $3,881,- 625, a gain of 9.2 jjer cent. Radio advertising over national networks declined slightly in June, but the total for the first half year was still far ahead of last year. The June expenditure was $413,859, a decline of 13.1 per cent, from June, 1931, but the six-month total was $4,010,464, a gain of 78.4 per cent, over $2,247,127 spent last year. SEPTEMBER 15, 1932 18 52nd year Say You Saw It in The Tobacco World September 1, 1932 Tobacco Merchants' Association Registration Bureau, '^tV^iora^ Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowance of $2 will be made to members of the Tobacco Mer- chants' Association on each registration. Note B— If a report on a search of a title necessitates the reporting of more than ten (10) titles, but less than twenty-one (21), an additional charge of One Dollar ($1.(X)) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-one (31), an additional charge of Two Dollars ($2.00) will be made and so an additional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATION CRIMCO RED BAR TWENTIES:— 46,070. For all tobacco prod- ucts. August 12, 1932. Crimson Coach, Incorporated, Toledo, Ohio. JACK HIGH: — 46,074. For smoking and chewing tobacco. June 13, 1930. Fisher & Koser Tobacco Co., Hanover, Pa. HIGH JACK: — 46,075. For smoking and chewing tobacco. June 27, 1932. Fisher & Koser Tobacco Co., Hanover, Pa. THALLES AND TFELEEN:— 46,076. For cigars, cigarettes and tobacco. August 20, 1932. Charles Krupitzky, New York, N. Y. TRANSFERS THE WHITMAN:— 14,179 (Tobacco Leaf). For cigars. Regis- tered October 19, 1897, by Philip H. Cohen, Whitman, Mass. Transferred by Harry A, Cohen, Whitman, Mass., Executor of Estate of Philip H. Cohen, to Arthur J. Claessens, Whitman, Mass., August 15, 1932. WHITMAN SPECIAL:— 14,010 (Tobacco Leaf). For cigars. Registered September 15, 1897, by P. H. Cohen, Whitman, Mass. Transferred by Harry A. Cohen, Whitman, Mass., Executor of Estate of Philip H. Cohen, to Arthur J. Claessens, Whitman, Mass., August 15, 1932. LONDON COURT:— 16,773 (Tobacco World). For cigars, ciga- rettes, cheroots, chewing and smoking tobacco, and in Tobacco, for cigars. Registered on December 15, 1908, and January 19, 1909, respectively, by the American Litho. Co., New York, N. Y. Through mesne transfers acquired by H. L. Haines & Co., Red Lion, Pa., and re-transferred to E. B. Strickler, Yorkana, Pa., August 3, 1932. RETAIL STORE PROBLEMS {Continued from page 14} Conference 5: The sales talk — Demonstration sales, including points showing how to satisfy difficult customers, how to in- crease sales by ''suggestive" or "creative" selling, liow to draw the customer's atten- tion to advertised merchandise, what phrases are displeasing, and how to meet impatience with courtesy. The Questionnaire The following questionnaire was furnished by a retailer who stated that it was being used to advan- tage in his store, which was one of moderate size. This questionnaire was issued to clerks after six months of employment. 1. When a customer gives you an excuse for not buying, what sliould your attitude be? Is it ever wise to show your disappointment! How does the cus- tomer feel wlien this is done! 2. What responses would you make, if any, to the following excuses for not buying? (a) I am in too much of a hurry to decide today. (h) I want to look elsewhere first. (c) I can get it cheaper at A's. (d) I will ask a friend to come in to look at it. (e) It is more than I expected to pay. day. (/) I haven't enough money with me to get it to- (g) 1 will wait until the goods are marked down. (h) I want my husband to see it. (i) I won't decide today. Ij) I am looking up the matter for a friend. (k) 1 am too tired to know what I want. (l) I can't get it until I know whether it matches my goods. (To be continued) MENGEL COMPANY REPORTS The Mengel Company, Louisville, Ky., manufac- turer of cigar boxes and other products, reports for the June quarter net loss of $183,711 after taxes and charges, as compared with net loss of $183,159 in the preceding quarter and net profit of $19,622, or fifty- nine cents a share on the 33,603 shares of 7 per cent, preferred stock in the June quarter of the previous year. For the six months to June 30, 1932, net loss was $366,770 against net profit of $5396 for the first six months of 1931. AMERICAN CIGAR DIVIDEND The directors of the American Cigar Company have declared the regular quarterly dividend of $2 on the common stock of the company, payable September 15 to stockholders of record September 3, and a quar- terly dividend of $1.50 on the preferred stock, pay- able October 1 to stockholders of record September 20. CREMOS NOW 3 FOR 10 (Continued from Page 3) fore every merchant must give his customers the ut- most value for their money, and there is no doubt but that the new price which will place Certified ''Cremo" cigars before the customer at five cents straight — three for ten cents makes Certified **Cremo" the outstand- ing value in the cigar world today. In commenting on the change in price of Certified *'Cremo", George W. Hill, president of the American Tobacco Company, stated that this is the step he has been working for for a long, long time. The American Cigar Company, as you know, has l)een completely reorganized and has leased its brands directly to The American Tobacco Company. As Mr. Hill anticipated, with these brands under direct super- vision of the American Tobacco Company, he was able to reduce overhead costs and maintain quality in a way that is utterly impossible, in his opinion, in a smaller organization. This step is very gratifying to Mr. Hill as he be- lieves it oifevs to the consuming public the greatest value ever offered in the cigar business — a value that he feels cannot be duplicated. The result he expects is an increase in the sale of ''Cremo" cigars beyond anything the cigar business has ever seen. Mr. Hill also advises that from his personal con- tact with the trade, this forward step is received with strong approval. Every modern merchant realizes that the present tendency in merchandising is towards greater value for the consumer with increasing volume, and consequently, greater profit but lower distributing costs. This fact he finds more generally recognized today than even he had anticipated. Indeed, from many quarters, he has been told that this step on **Cremo" may even result in an increase in total cigar consumption. O. G. IS THE BEST CIGARETTE" MINfj automatic maGhines offer A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AUTOMATIC AGE 2810 S. Michigan Avenue Chicago IIHnoift In 1^ repealeil lf!^t» inaih* of four leu«liii^ rijiart'llf hraruls nicasiiriti<; the heat roii- U'lil of i'arh cifianlU' h> ihr CaK>rinirl«T nirlhoil ... it v»af* i^hoMii that oil) «,«M,I> is from 112 to 156 B.T. I V, lOoi.KR than the other hranils*. That's ^hy O. (is. are eooh'r anil ilo not serateh the throat or taint the hreath. © I". I^trill.iril (..... Irii . PURE TOBACCO • NO ARTIFICIAL FLAVORING "BEST OF THE BEST" ""•'•"""■' "' A. SANTAELLA & CO. Office. 1181 Broadway, New York City FACTORIES Tampa and Key West. Florida ■ ■■ ■■■■■! ■■ Hi> Mat ^11 I M I I ■■ ■■ ■■ ^wW^^— ^^Hl IB llllllllllllllllll PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. After all jiothing satisfies like" a good cigar ^ BUSINESS IS LOOKING UP! Follow the Trend and Increase Your Sales With • • WOODEN BOXES • • Let your sales convince you that more customers select cigars from wooden boxes than from any other form of container. In Wooden Boxes the whole length, shape and color of the cigar is open for easy inspection and selection. Furthermore the cigar flavor and aroma is ripened to its fullest fragrance in these containers. WHEN BUYING CIGARS Remember thjr Regardless of Price THE BEST CIGARS ARE PACXrD IM WOODEN BOXES 5BSJBSBSJB^5 A»>(J'XS/J!A»JL\»A:W'W»y"^»A:*»': Volume 52 THE TOBACCO WORLD Number 18 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, SEPTEMBER 15, 1932 Foreign $3.50 GEORGE LEX RESIGNS FROM ZIFFERBLATT COMPANY EORGE M. LEX, well known to the cigar manu- facturing industry, has announced that he has resigned as secretary of George Zitferblatt & Company, and severed his connection with the firm effective September 15th. Mr. Lex came into prominence in the industry sev- eral years ago at which time he was associated with the 44 Cigar Company, and held the position of treas- urer of the company at the time it was merged with the Consolidated Cigar Corporation. Sometime later he became associated with the lithographic firm of William Steiner Sons k Company, and later became associated with the Congress C'igar Company as general office manager, and remained with that company until the offices in Philadelphia were moved to Newark and consolidated with the Porto Rican American Tobacco Company. His wide experience in the cigar industry has earned a reputation for him, of being a man of excep- tional executive ability, honesty and square dealing. Mr. Lex has not announced his future plans, but after enjoying a well-earned rest and vacation, it is anticipated that he will re-enter the industry, since he is not the type of executive who could be content to retire at such an early age. He will be glad to hear from any of his friends who desire to keep in touch with him at his home in the Chatham Hotel, Twentieth and AValnut Streets, Phila- delphia. PHILIP MORRIS CONSOLIDATED DIVIDEND Directors of Philip Morris Consolidated, Inc., holding company for Philip Morris & Co., Ltd., and Continental Tobacco Company, today (Thursday) de- clared the regular quarterly dividend of 1% per cent. (43% cents a share) due at this time on the Class A stock of the company; and a further dividend of like amount to apply against accumulations on this issue, both payable October 1, 1932, to stockholders of record September 20. This action marks the first step in clearing up the accumulations on the Class A stock prior to October 1, il931, when the initial dividend was paid. C. A. BOND RETURNS Charles A. Bond, tobacco agent of the Philippine Government, who maintains headquarters at 15 William Street, New York City, has recently returned from a swing through western territory, where he was warmly welcomed and assured that the market for those good Manila cigars was being well maintained and prospects are exceedingly bright for increased sales this fall. UNITED REALTY PROTECTIVE GROUP FORMED PROTECTIVE Committee has been organized to represent holders of Cigar Stores Realty Holdings, Inc., twenty year Sy^ per cent, sink- ing fund debentures, Series A, it w^as an- nounced last week. Cigar Stores Realty Holdings, Inc., is a subsidiary of United Cigar Stores of America, con- trolled by the Gold Dust Corporation. Both United Cigar Stores and Cigar Stores Realty Holdings filed voluntary petitions in bankruptcy in the United States District Court on August 29. The committee for the debenture holders consists of Louis L. Strauss, of Kuhn, Loeb & Co. ; Burnett Wal- ter, of Guaranty Conii)any of New York; R. J. Whit- field, of Chase Securities Corporation, and Maurice Wertheim, of Wertheim & Co. Davis, Polk, Ward well, Gardiner & Reed are to act as counsel for the commit- tee, and Edgar J. Grossman, 15 Broad Street, as secre- tary. Guaranty Trust Company is to be the depositary. The committee has asked for immediate deposit of the debentures, in order that concerted action may be taken through united representation on behalf of and in the interest of the debenture holders, it was said. JERSEY RECEIVER ASKED FOR UNITED The appointment of ancillary receivers for the United Cigar Stores Company, which went into volun- tary bankruptcy on August 29, was asked in a petition filed in the Federal Court at Trenton, N. J., on August 30. The Deisel-Wenmier-Gilbert Company, of Detroit, a creditor, declared that an ancillary receiver was nec- essary to preserve the bankrupt's estate in New Jer- sey. The company has stores in Atlantic City, Camden, Elizabeth, Hoboken, Jersey City, Newark, Paterson, Rutherford and Union City. Judge Guy Fake held the petition for further consideration. Space in the building at 136 North Third Street has been leased by a real estate agent here to Jose Carbal, Ja., & Son, for tobacco manufacturing pur- poses. GARRETT SNUFF ANNIVERSARY The American Snuff Company, Memphis, Tenn., is celebrating the 15()tli anniversary of their '* Garrett Snuff" brand, which was placed on the market in 1782 and has been a standard of quality in the snuff trade since that time. Directors of Ihe company have declared a quarterly dividend of 75 cents a share payable October 1st to stockholders of record September 14th. A regular quarterly dividend of $1.50 was also declared on the preferred stock of the company, payable October 1st to stockholders of record September 14th. 52nd year THE TOBACCO WORLD September 15, 1932 SPECIAL OFFER ON ''OLD GOLD" 20S HE p. LORILLARD COMPANY, under date of August 31st, advised jobbers throughout the country of a special oflfer of ten cents a thousand on "Old Gold" 20s sold during the month of September. The deal has been enthusiastically received throughout the trade and a substantial increase in *'01d Gold" sales has resulted. The offer reads as follows: For the month of September, 1932, we will allow you at the rate of ten cents a thousand on each thou- sand ''Old Gold" cigarettes 20s sold by you to the retail dealer. Under this offer you are to report to us not later tlian October 5, 1932, on the blank enclosed, your total sales of "Old Gold" cigarettes 20s to the retail trade. We will send checks in payment of the allowance due, provided our shipments to you during the month of September, 1932, equal the qU'^i^tity of "Old Gold" cigarettes 20s you report having sold to the retail trade in that month. This olfer applies on sales to bona fide retail dealers only, and does not apply on sales or deliveries to the brancli houses, retail departments or retail stores of our direct customers. All orders are subject to acceptance by our New York Office, and if accepted will be filled at prices ruling on day of shipment. No representative or employee of this company has authority to change any circular, letter or price list issued by this company. RECEIVER IN PENNSYLVANIA FOR UNITED As a consequence of the voluntary bankniptcy of the United Cigar Stores of America in New York re- cently, Judge Welsh, in Federal District Court here last week appointed two ancillary receivers to take charge of the company's 100 stores in this district. He named Ru])y R. Vale, lawyer, and William White, foimer Deputy Banking Commissioner, as the receivers and directed tliem to file a joint bond of $100,000. Judge Welsh made the appointment after listen- ing to argument between counsel for Pennsylvania creditors and an attorney for tlie Irving Trust Com pany, of New York, tlie domiciliary receiver, which opposed appointment of ancillary receivership on the ground of expense. WALGREEN COMPANY SALES Walgreen Companv reports for August sales of $3,603,330, against $4,626,601 in August, 1931. For the eight months ended August 31, 1932, the sales totaled $30,950,803, as compared with $36,710,137 in the first eight months of last year. L. H. HARTMAN OPENS PHILADELPHIA OFFICE The L. II. Hartman Company, Incorporated, re cently organized advertising agency of New York City, has opened a Philadelphia office in the Packard Build- ing. Harry C. Gru])])s, formerly connected with the Victor Talking .Maeliine Company and the R. C. A. Victor Company, is in charge. Dorotliy W. Gershon, cigar stand manager. West 37th Street, New York, filed a voluntary peti 101 petition in bankruptcy in that city last week, listing liabilities of $6296 and assets of $150. PHIL M. PHULOFAX RETURNS OPTIMISTIC EPTEMBER and home again," writes Phil M. Phulofax, I). B. 1., from the Bayuk offices in Philadelphia. "I had expected to make a few more stops before returning toi the home plate, but the best made plans of mice and men, even cigar experts, sometimes go astray. There's^ so much to be done right here and I have accumulated enough ammunition for some sure fire selling aids to pass along during the winter. The desk is piled high and I 'm full of wim, wigor and wital- ity, ready to dig in. "Right here and now I want to say that this was the most inspiring trip I 've ever taken, that it made me feel happy and hearty about life in general and the cigar business in particular. Of course there are always some fellows who lie down on the job, no mat- ter what it is. They were born reclining and they die that way; but there's also the great legion of men who have been coming through with grit and grins. TJiey are the boys who are smart enough to find oppor- tunity by hunting for it, who realize that summer, which the sluggards dread like one long knock-out on the busiiness jaw, has its own selling possibilities. "They realize that a business is a many-sided atf air and that they must keep the old eye peeled around every corner to make it pay its overhead and put cash into their pockets. Tact for your customers; smart clerks who treat your money and your patronage as their own; little details of shop furnishings and func- tionings that inake for a neat, up-to-date appearance; and an arresting and frequently changing window dis- play— these are some of the points the successful re- tailers have been stressing. "And now how do we stand? "After looking around towns big and little and talking to folks in cities and villages, I begin to feel that we are very near the brow of the hill, if we have not actually reached it. I make no claim to prophetic powers and I never took a course in crystal gazing, but it looks like a smooth, level stretch of road ahead. "Even if you haven't been devouring the financial pages, you know that there's something in the air be- sides the brisk coolness of approaching autumn. It is optimism. "People are returning to town ready to buy, to stock up with a fresh supply of everything including cigars. ' * People are feeling more confident, brisk and busi- nesslike. It's contagious. "People are going to buy for themselves, for gifts and, most of all, because they are sold. Above all, it's the selling effort that counts. "Here is a true story. A short time ago, a large department store was interested and slightly distressed to receive a letter from a customer complaining of the lack of interest of salespeople. The store tried an experiment. The management sent letters enclosing $10 to five old customers, asking each of them to come to the store and buy an article worth one dollar and spend the rest of the $10 in the store if further pur- chases were suggested by the clerk. The shoppers spent $5 for their original purchases. Six dollars addi- tional was the total si)ent by the five women upon the suggestion of salespeople. Of the fifty dollars $39 was returned to the management. "There is food for thought. Thirty-nine dollars out of a possible $50 remained unspent because clerks didn't make the effort to sell — and that in a difficult year. Let's think it over in relation to our own busi- ness. And here's to a smashing winter I" September 15, 1932 Say You Saw It in The Tobacco World 52nd year Siriteh to enamels Never parched or toasted k BLEND of choice Turkish and -^^ mild, sun -ripened Domestic to- baccos— Camels are never parched or toasted. Made fresh and kept fresh in the Camel Humidor Pack, Camels are mild and cool-burning. If you haven't smoked a fresh cigarette lately, switch to Camels for just one day, then leave them — if you can. R. J. REYNOLDS TOBACCO COMPANY Winston-Salem, N. C. AM ELS Made FRESH — ITep^ FRESH Don 7 remove the Camel Humidor Pack — it is protection against perfumt and powder odors, dust and germs. Buy Camels by the carton for home or office. The Humidor Pack keeps Camels fresh 52nd year THE TOBACCO WORLD September 15, 1932 •'CORONA" SHIPMENTS EAGERLY AWAITED AHN & .McDonnell, local distributors for the famous ''Corona" brand, and other Henry Clay & Bock and Company brands, are anxiously awaiting- first shipments of the *' Corona" brand, which is now being manufactured at Trenton, N. J. They have a large volume of retail orders on hand and customers are constantly inquiring for shipment. The recently announced reduction in price on this world famous brand has stirred a great deal of interest in the trade and among consumers and a ready sale of the brand is indicated. Shipments are expected to arrive within a few days. FRANK VALENTINO SHOT IN HOLD-UP Frank P. Valentino, sixty-one, of 1212 North Eleventh Street, was shot in the neck on Monday night by one of three negro bandits in an attempt to rob Valentino's cigar store, adjoining his home. After asking for cigars the ''customers" drew pistols and one of them started behind the counter to- ward a cash drawer. Valentino raised a box of cigars to his face as a shield, at which the bandit fired. The bullet passed through the box, grazed Valentino's jaw and lodged in his neck. The bullet was removed at St. Luke's Hospital. The bandits were chased north on Ek'venth Street by pedestrians but escaped. CIGAR DEALER SHOT BY CRAZED MAN Last Thursday night, Frank Crandall, cigar dealer, of 261 South Ninth Street, was shot l)y a crazed negro at Ninth and ^Market Streets, and died on Fridav morn- ing at the Jefferson Hospital. The negro opened fire without warning and seri- ously wounded another bystander and a traffic police- man. Just as the negro was about to be captured, he turned the gun on himself and died instantly. He was tentatively identified as Daniel Troy Davis, of Wash- ington, D. C. CONGRESS CIGAR DIVIDEND The Congress Cigar Company has declared a regu- lar quarterly dividend of 25 cents a s hare on the com- mon stock of the company, payable September 30th to stockholders of record on September 14th. FRANK N. WINSLOW PASSES RANK N. WINSLOW, well-known to cigar dealers throughout Eastern Pennsylvania, passed away at his home in Glenside, Pa., on September 5th, following a prolonged illness. Mr. Winslow formerly resided in Germantown, and was at one time associated with the P. Lorillard Com- pany and later with Bayuk Cigars, Incorporated. He was known as a gentleman of sterling qualities and was extremely well liked by all who knew him. Funeral services were held on Fridav afternoon, September 9th, from the Oliver H. Bair Building, 1820 Chestnut Street. Interment was in Woodlands Ceme- tery. He was fifty-seven years old. Trade Notes Mr. Osborn, of the '^Por Laranaga" factory in Havana, was in town last week visiting the trade. Clarence Thompson, manager of the Hotel Belle- vue-Stratford cigar stand, has recently returned from a short vacation spent in touring the South. John L. McGuerty, United States representative for the ** Romeo y Juliet" factory in Havana, was in town last week calling on the retail and jobbing trade and left with some nice orders for his brand. Mr. Lex Ehrman, of Ehrman Brothers, Horn & Company, San Francisco distributors of Bayuk brands for that territory, was a visitor at Bayuk headquar- ters last week, on a trip through the East. Mr. Joseph Wagner has returned to headquarters (John Wa^rner & Sons), after a short vacation spent at Hot Springs, in excellent health, having fully recovered from a recent severe cold. Steve Hertz, of the D. Emil Klein Company, was a visitor at Yahn & McDonnell headquarters last week. Yahn & McDonnell are distributors for the **Haddon Hall" brand in this section and they are meeting with a ready call. September 15, 1932 Say Ton Saw It in The Tobacco World 52nd year THE KING OF BEASTS "Nature in the Raw"— as portrayed by the great animal painter, Paul Bransom . . . inspired by the brute force and savage cunning which has made the lion ruler of the African jungle. 1 — and raw tobaccos have no place in cigarettes They are not present in Luckies . . . the mildest cigarette you ever smoked w E buy the finest, the very finest tobaccos in all the world— but thatdoesnotexplain why folks everywhere regard Lucky Strike as the mildest ciga- rette. The fact is, we never over- look the truth that "Nature in the Raw is Seldom Mild**— so these fine tobaccos, after proper aging and mellowing, are then given the benefit of that Lucky Strike purifying process, de- scribed by the words — "It*s toasted". That's why folks in every city, town and hamlet say that Luckies are such mild cigarettes. "It's toasted" That package of mild Luckies "If a man write a better book, preach a better sermon, or make a better mouse-trap than his neighbor, tho he build his house in the woods, the uorld will make a beaten path to his door. ' '-RALPH WALDO EMERSON. Does not this explain the world-wide acceptance and approval of Lucky Strike? 8 52nd year THE TOBACCO WORLD September 15, 1932 News From Congress p. -AND Federal Departments VENTUAL adoption of the general manufac- turers' sales tax as a means of solving the Government's revenue problem is predicted by Congressional leaders as a result of the large volume of complaints which are being received in Washington charging that the rates in the 1932 law are ** prohibitive." Such a change in the law would bring the tobacco industry into the tax picture, unless specifically ex- empted as It was in the general sales tax provision considered by Congress during enactment of the pres- ent law. The next session of Congress, it is believed by Sen- ator Reed Smoot (Rep.) of Utah, chairman of the Fmance Committee and an advocate of the sales tax, in the light of general business conditions as they then probably will exist will find it necessary to re-examine the law with a view to removing inequities. The movement looking toward revision of tax rates came on the heels of President Hoover's speech of acceptance, in which he pointed out that where rates have proved excessive and are sapping the life of in- dustries they must be revised. ** There are inequalities in the new law passed at the last session of Congress and these inequalities must, in my opinion, be corrected," Senator Smoot declared. ** Results of the new rates will be apparent by fall and I believe they will show the necessity of some changes in the law. ** Business men in various sections of the country have written protesting some of the new rates, which they assert are excessive and threaten their ruin. Per- sonally, I think that the bottom of the business depres- sion has been reached and that conditions are getting bettereverywhere in the country. I believe these con- ditions wdll continue to improve, and I hope it will be a gradual upward movement instead of a movement loo speedy for safety. **We have consumed most of our surplus in vari- ous articles and there is justification for manufacturers to resume operations if they are to meet the demand for supplies. The end of the business of operating on a hand-to-mouth basis is, I hope, in sight. A great many men have been put back to work and I am satis- fied that unemployment will steadily decrease." Reverting to the taxation problem, however, the Senator expressed the opinion that until business has substantially improved there can be little hope of a downward revision of Federal taxes. He pointed out that the levies in the new law^ were based on better business than is now prevailing. Because of this fact, he said, the correcting of inequities in the law does not mean a general revision downward. Declaring that the ''next six months will be mo- mentous m the history of the United States," Secre- tary of Commerce Roy D. Chapin, in his first public utterance since entering the President's Cabinet, on August 22 envisaged mass production, with its econo- mies and high values for the consumer's dollar, as the road back to prosperity. Reviewing the progress of the depression. Secre- tary Chapin declared himself ** astonished" at what the Government has already undertaken in the fight against depression and asserted that but for the re- pressive influences of foreign events the country by now would have been further on the road to recovery. The ''defensive" measures with which the United States met the depression now give indications of turning into an offensive for the recapture of prosper- ity, he said. ''I think we have all felt a distinct change in spirit within recent weeks," he asserted. *' There IS no doubt that a new and aggressive mood is gripping the country, more typical of American buoyancy and fighting spirit." Part of the economic struggle, the Secretary de- clared, "is to solve the problem of adding to consump- tion. Underconsumption is our greatest threat," he commented. "Only by greater consumption can our factories again become busy and industrial employ- ment be made regular. "In the last analysis the purpose of the construc- tive moves by this Government is to revive employ- ment. As we progress through this cycle, new employ- ment creates purchasing power which in turn means more employment. "It is obvious that in times of falling prices and decreased purchasing power, one method of increas- ing the consumption of goods is by giving the buyer more for his money than before. Never has industry sought so hard to give unusual value for its products as today." CJ3 Cj3 Ct3 A decline of more than 10 per cent, in tobacco tax collections during the fiscal year 1932, ended June 30, last, as compared with the preceding fiscal year, is shown by the Internal Revenue Bureau in its annual compilation of collection statistics just made public. Total collections from tobacco were $398,578,618 against $444,276,502 in 1931, a drop of $45,697,884. More than $41,000,000 of this loss was in the taxes collected on cigarettes, which amounted to $317,533,080 against $358,915,187. Receipts from cigars declined $3,817,787, from $18,025,467 in 1931 to $14,207,679 in 1932, while taxes (Continued on page 15) September 15, 1932 THE TOBACCO WORLD 52nd year 1 X believe you love that old pipe better than you do me!** en smoke a pipe because ifs kind of soothing. . quieting. If the tobacco is made for pipes, if it's cut to burn cool, and if it never gums the pipe, that's when men en- joy it.Thafs why Granger is America's pipe tobacco. YOU CAN DEPEJN D ON nandy pocket pouch of heavy foil. Keeps your tobacco in better con» dition and makes the price lower . . . l Ap LIGGETT & MYERS PRODUCT 10 52nd year THE TOBACCO WORLD September 15, 1932 Trade Notes ^ Zolla Brothers, distributors of Bayuk cigars in Chicago territory, are maintaining their stride with the aid of J. A. Brown, Bayuk territorial manager, on Bayuk ''It's Eipe Tobacco" cigars. F. J. Horning, Bayuk salesman, recently assisted the Ohio Valley Wholesale Company, Portsmouth, Ohio, in a drive for increased distribution and sales on Bayuk brands, wdth good results. George Stocking, of Arango y Arango, Tampa manufacturers of the ''Don Sebastian" clear Havana line, was a visitor in town last week, and reported a highly satisfactory call on his brand in this territory. The Huser Cigar Company, Huntingdon, Tnd., have been receiving the assistance of C. L. McClure, Bayuk salesman, who recently did some special promotional work on Bayuk lines in that territory. Harry Tint, who operates the high-class cigar stand in the Burlington Arcade and the Pennsylvania Building, has returned from a vacation spent at Atlan- tic City. Roy Barkman, territorial manager for Bayuk Ci- gars, Incorporated, has just finished some productive promotional work in the Sturgis, Mich., territorv on Bayuk brands, which are distributed there by the George C. Runyan Tobacco Company. John Wagner & Sons report that the recently in- troduced new sizes of their "Wagner" brand are meet- ing with a splendid demand and tliey have recently been forced to wire for additional shipments to fill their orders. Mr. Carlin, representing Simpson, Studwell & Swick, manufacturers of the "Chuckers" cigarette, is doing a splendid job on that high qualitv l)rand in this territory, and they are enjoying a splendid call among the high-grade stands. Mr. Laupheimer, of the In-B-Tween Cigar Com- pany, Baltimore, was in town last week visiting the trade and showing their new live-cent cigar. This is a real cigar and is meeting with a favorable reception from the trade and consumer. Out-of-town salesmen calling on Yahn & McDonnell last week included such w^ell-known "gentlemen of the road" as J. B. Annis, of Gradiaz Annis & (^ompanv, Tampa; Abe Caro, of A. Santaella & Company, Tampa ; Fred Suss, of S. H. Furgatch y Ca., New York ; and Mannie Perez, of Marcelino Perez & Company, Tampa. The "Girard" Banker size, formed v a tremen- dously popular brand of A. Roig & Langsdorf , and later acquired by E. Kleiner & Comi)any, and now the prop- erty of Webster Eisenlohr, Incorporated, has been re- duced to retail at five cents and is being welcomed by old friends of the brand. N. A. T. D. BOARD MEETING MEETING of the officers and board of direc- tors of the N. A. T. D. was held on Saturday, August 27th, at the Hotel New Yorker, New York City. Due to the number of very im- portant matters that had to be discussed, the meeting was held over until Sunday, the 28th. Those present were : C. A. Just, E. Asbury Davis, E. W. Harris, J. Vipond, George B. Scrambling, J. R. Edwards, Geo. Frings, Joseph Kolodny, A. Schwartz, L. K. Black, E. C. Dearstyne, A. L. Haas, J. Loughran and Max Ja'Cobo^\dtz. The houses with whom the above are affiliated are well known to the trade. Visiting members were I. Moss, Trenton, N. J., and H. Goldman, Washington, D. C. Actual constructive policies were adopted and the following committees were appointed on matters which appeared to be of first importance : Ways and Means: J. Kolodny, A. Schwartz and J. Loughran. M ember sJiip: E. W. Harris, L. K. Black, H. Gunst and C. E. Watkins. Constitution and By-laivs and Code of Ethics: J. Vipond, G. B. Scrambling, E. C. Dearstyne and M. Jacobowitz. Cigar Manufacturers: E. Asbury Davis, Sam Wasserman, G. B. Scrambling, C. A. Just and M. Jacobowitz. The fine attendance e\ndenced great enthusiasm, as did the unanimous adoption of all policies. Those wiio did not attend were either out of the United States or could not do so because of the press of business. The enrolled members at present represent some of the most important tobacco products jobbing houses in this country. Numerous applicants for affiliation mil be announced later by the membership committee. The appointed committees will make their reports to the board of directors at a conference to be an- nounced later, and will be made public immediately thereafter. The cigar mahufacturers' committee convened at the Hotel New Yorker, on Monday, August 29th. De- tails of importance w^ere brought forth and this com- mittee will announce its deliberations in the very near future. Alvaro M. Garcia, of the Garcia y Vega factory, Tampa clear Havana manufacturers, was a recent visi- tor at John Wagner & Sons, "Garcia y Vega" distribu- tors for this territory. The "Garcia y Vega" brand enjoys a splendid sale here under the able representa- tion of Ben Lumley, one of the best known and liked salesmen in this district. Tom Allely, well-known to the trade as a former representative of the Union Tobacco Company in this territory, has returned to the fold after an absence in other fields, and is now representing the Christian Peper Tobacco Company, St. Louis, Mo., on their "Listerine" cigarettes, and other brands, with splen- did success. Johnnie Kneher, well-known lithographic sales- man covering Eastern Pennsylvania, has become asso- ciated with the Consolidated Lithographing Corpora- tion. Mr. Kneher w^as formerly with the Moehle Litho- graphic Corporation, and later with the American Colortype Company, when that company absorbed the Moehle Company. September 15, 1932 Say You Saw It in The Tobacco World 52nd year 11 PHIL M. PHIJLOFAX,^ D.B.I. {the retailer'* s friend) says: **A rolling stone information" Copyright 1932 Bayuk Cigars, Inc That wheeze about a rolling stone gathering no moss may be all right, depending on the moral you take from it. But to me it always sounds like upside-down philosophy. Why should a stone — or a man — or a store gather moss any- how? I take that as a sign of decadence — of doing nothing or getting nowhere. "Go places and learn things," is my motto . . . and also that of G. C. M., of Allentown, Pa. Here's what he writes : "It's easy for a cigar retailer to get so close to his busi- ness that he can't see where it can stand improvement — ■ especially if he has to do a lot of store tending himself and doesn't get around much. I'm 'head clerk' myself; but I never let myself become so chained to the counter that I get deaf, dumb and blind to what other retailers are doing-, or how I can *pep' up my own store and selling methods. "At least once a week I tear myself away and go on a still hunt for information about the cigar business. Whether it's a stroll through my section of town, a short trip in the family 'flivver' or an errand downtown, I drop into as many cigar stores as I can. Spending a nickel or dime makes me a customer and not just a snooper. Naturally, I'm all eyes noting how others keep their stores, and all ears listening to the sales talk they hand out. "In the unprogressive stores I learn about faults to be avoided. In the up-to-date ones I get ideas I can use advan- tageously myself. As a result, I usually get home with an object lesson under my hat that's worth a great deal more than the time I've taken to obtain it. Maybe it's an idea for a better store arrangement; putting on a 'sale'; a window attraction ; some wording for a snappy poster ; a line of talk to help me move some sleepy stock ; or a reminder as to where or how a bit of paint would brighten up the store or fixtures. "Has it paid me? Does a roving bee gather the makings for honey? If I do say it myself, I've got a store any cigar retailer could be proud of. If you ever get up my way, ask anybody within three blocks where to find the livest cigar store in the neighborhood. I'll have a good cigar ready to welcome you with — for it's my store they'll be directing you to." Thanks for the cigar, G. C. M. ; and especially for that ringing speech of yours. It has enough voltage to lift any tied-down, easy-go retailer right out of his seat and send him rolling out on an information-gathering expedition before the next sunset. (7^^^^ D. B. I. ^Associated icith BAYUK CIGARS INC., Philadelphia Makers of fine cigars since 1897 P. S. — Business building is a cumulative process— of using, adapting or improving on the methods of others. In the end everybody bene- fits. That's why more of you other retailers ought to be contribut- ing selling suggestions for my page — in return for the doggone good ideas others are handing you. Do your stuff, men, and let me hear from you. BAYIJK BRANDS BVILD BUSINESS BAYUK PHILADELPHIA CIGAR (BAYUK ''PHILLIES'') BAYUK MAPACUBA PRINCE HAMLET BAYUK HAVANA RIBBON CHARLES THOMSON 12 52nd year THE TOBACCO WORLD September 15, 1932 RETAIL STORE PROBLEMS So many persons are unaware of the many aids to business tvhich have been carefully prepared by the United States Government, and so many of those tvho are aware of these facilities fail to take advantage of them, that we are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) {Continued from previous Issue) EDUCATION OF A RETAIL SALES FORCE THE QUESTIONNAIRE (m) I must think it over. (n) I think I will buy the goods and have my dressmaker make it. (o) It doesn't fit Avell enough. (p) I prefer to go to B's; I have a charge account there. (q) I want something nicer. (r) That is not the color I had in mind. (s) I don't want to pay for alterations. (f) It is different from the make you carried last year. 3. Have good salesmanship and volume of returns any bearing upon each other? Good salesmanship is selling merchandise that does not come back to cus- tomers who do. 4. If a customer who interrupts a sale wishes more help than you can give her, what should you do? 5. What would you say and do if a customer whom you are waiting on criticizes the service in another department of the store! 6. Is it good taste to ** knock" your competitor's merchandise? Whv not? 7. Should there be any difference between your courteous treatment of a cash or charge customer? What is the value of each to the store? 8. How do sales clerks often appear when custom- ers return merchandise ! Is it good policy ? Why not ? What is the policy of the store on returns? 9. Why is it a good policy to show merchandise to a customer who is waiting? 10. Do you believe it is a good plan to interrupt a sales clerk? Why not? Is it ever permissible? Can it be managed courteously ? Floor Manager's Weekly Report The following is a copy of a report which was used with good results in one store. This report is similar to that which is required in many other retail estab- lishments. 1. Have you the right number, too many, or too few people in your departments? 2. Are there any incompetent sales clerks in your force? If so, give names. 3. Do you find that your sales people have an ade- quate knowledge of store system and policy? If not, state who is lacking and along what lines. 4. Are the sales clerks equipped with a knowledge of their merchandise? How is this instruction given and by whom? 5. Have you noted any cases of unusual service rendered to customers, or cases where there was a de- cided lack of service? Have you reported them? 6. Do you check up on the store's dress regulations each day and report those failing to conform? 7. Are the merchandise card tallies filled out faith- fully by the sales force? Name those failing to do this. 8. Is the discipline of your department what it should be m regard to gum chewing, eating, visiting, or receiving social calls? Have you reported any who have repeated such offenses? 9. Is the charge-authorizer service in your depart- ment prompt and efficient? If not, have you reported failures in service to the head of the charge office? 10. Have you any complaints against our delivery service that require particular attention ? What ? 11. Are the cash registers in your section in per- fect order? 12. Is your telephone service prompt and cour- teous? If not, have you reported your complaints? 13. Are you careful about watching the number of personal calls made by fellow associates? 14. Do you make it your business to see that no merchandise gets lost, either under the counter or back of the shelving? 15. Do you consider the stock keeping in your de- partments as efficient as it should be? Wherein does it fail? 16. So far as you know, is the service of the receiv- ing and marking rooms efficient? 17. Do any counters, glass, or fixtures in your de- partments need repairing? 18. Does the floor or case lighting in your depart- ments require attention? If so, what? 19. Do you see that merchandise is correctly marked and that price signs are properly placed? 20. Will you make it a part of your personal effi- ciency to make suggestions or recommendations that you feel will be for the betterment of the store? Sources of Material The store itself is a reservoir of information for use m instructing sales clerks. Buyers, executives, sales experts, and customers may all serve in contribut- mg to this supply. The material for instruction in store routine and store policy must come from the store executives. Another fund of knowledge with regard to the con- struction of a course of study and methods of instruc- tion best adapted to the needs of various types of stores IS the specially trained teacher graduated from a reputable school of retailing. The number of teachers especially trained in retail subjects has gradually in- creased, but at present there is still a scarcity of com- petent instructors. The retail trade associations are active in supply- ing every aid to the advancement of the retail sales- men's education. Manufacturers and wholesalers rea- lize to a large extent the importance of training the retail selling force and are ready to assist in this train- ing by providing material in a number of forms, such as handbooks, circulars, magazines, samples of prod- ucts, motion pictures showing manufacturing proc- (Continued on Page 14) September 15, 1932 Say You Saw It in The Tobacco World 52nd year 13 ANOTHER BIG NEW BROWN & WILLIAMSON VALUE your customers will grab fori f YOU'VE got to admit that when it comes to putting over successes that make your cash-till ring, Brown 8b Williamson is there! Look at *em, at the bottom of this page! And now comes BUGLER, the new- est member of the family. A 5^ fistful of fine, blended cigarette tobacco for the man who wants to roll his own and likes 'em blended, but who doesn't want to pay more. Dealers are already stocking it and report BUGLER is every bit as good as it sounds! If you haven't your stock yet, your jobber is ready to sup- ply you. BROWN & WILLIAMSON TOBACCO CORP., LOUISVILLE, KY. Sir Walter Raleigh Smoking Tobacco, Raleigh Cigarettes, Golden Grain Smoking Tobacco, Wings Cigarettes and Target Cigarette Tobacco are others in the group of well-known BS*W successes. 14 52nd year THE TOBACCO WORLD September 15, 1932 RETAIL STORE PROBLEMS (Continued from page 12) esses, conventions, the compilation of bulletins, mail courses in retail selling, and other aids. The Federal Board for Vocational Education and the commercial division of the Bureau of Education (Department of the Interior) may be of help in compil- ing reading lists and in furnishing book references on the subject of training a retail sales force. In supply- ing technical data for collaterial material desired the various bureaus and divisions of the Department of Commerce, Department of Agriculture, and Depart- ment of Labor will be of particular value. The above is merely suggestive and is intended to show the varied sources of material available for the use of the retailer who desires to give more serious attention to the systematic training of employees. Conclusion Vindication for all the time, labor, and money spent in the whole modern scheme of distribution hinges closely upon how well the retail salesman is equipped to perform the final functions which deliver merchandise into the consumer's possession. There- fore, the proper training of a sales force is a matter which vitally concerns every merchant engaged in the retail business. It is probably true that the majority of merchants use a training system of some kind, and in many stores the system of education established has proved so pro- ductive of increased business that a need for improve- ment is not seriously considered. A more intensive study of present-day retailing conditions leads to the conclusion that either a poorly trained selling staif or one educated to efficiency will serve equally well in illus- trating the importance 'to the retailer of scientifieally cultivating retail salesmanship. A clerk in a store of any size or character should know the stock he is to handle, how^ to sell it, and why he sells it. There are now store clerks who can not justly be called salesmen, many who are moderately skillful, and others who through training have acquired adept ability. In any case, the direct effect w^iich sys- tematic training, or the lack of it, has on the retailer's business fully demonstrates that further effort may w^ell be directed toward increased proficiency in retail selling. COOPERATIVE RETAIL ADVERTISING Introduction Cooperation has entered the field of advertising. The idea came into existence at no definite time. It was but the realization that the prosperity of the in- dividual depends in a large measure on the prosperity of the group. It is a sign of the times. The ''Shop early for Christmas" idea is coopera- tion of the highest type; ''Stop, look and listen" has brought home to us the necessity of watchfulness when crossing railroad tracks; "Safety first" and "Lose a minute and save a life" have, tlirough cooperation, accomplished much. One of the most popular forms of cooperative ad- vertising is community advertising, which aims to at- tract attention to the community or to a larger area as a whole and which is sponsored by a city, a state, or a section of the country. What is here termed "co- operative retail advertising" refers to the furthering of sales, either directly or indirectly, within the com- munity and its contrilnitini!: territories by a retail group. This advertising reaches a present and tangible market, and it is the form of cooperative advertising in which the retail dealer is believed to be naturally and logically most interested. His own organization, as well as others within the community, must have the right business spirit before he can hope to attract organizations or persons from without that community. It is like putting one's own house in order first. This study has, therefore, been limited to cooperative ad- vertising and to only those phases which concern the retail dealer. Purposes of Cooperative Advertising The primary purpose of cooperative retail adver- tising, as well as all advertising, is to promote sales. In fact, special sales events have been to a large de- gree responsible for bringing home to the "merchant the full value of cooperative advertising. Dollar-day sales, for example, where cooperation is necessary to the extent of agreement as to the dollar sales price and the specific day for the sale, have taught the merchant that cooperative effort does make sales events more effective. The second aim— to reduce the cost of advertising — is equally important. Just as any combined effort brings about a more emphatic result, a cost shared by many reduces the amount expended l3y any individufil of the group. Some merchants have thought that they could not afford to buy space regularly and w^ork up copy which w^ould always be effective. Cooperative advertising meets this problem. It makes it possible for even the small retailer to compete successfully in advertising. Thirdly, there is the opportunity to bring about a high standard in advertising. Advertising has per- haps suffered from attacks of untruthfulness more than any other field of w^ork. With a full realization of this condition, the advertiser of today is making admirable efforts not only to eliminate untruthful or misleading statements, but also to avoid exaggerations, meaningless superlatives, hasty generalizations and glittering remarks. Through cooperation these aims can be more easily accomplished. A fourth opportunity is one w^hich is afforded both to the retailer and to the public. Cooperative retail advertising tends to eliminate petty differences and unfair competition among merchants and to substitute a spirit of good will. Good will among merchants soon spreads to the community which it serves and brings about that same spirit between merchant and community, building confidence and patronage. It emphasizes the value of a "trade-at-home" policy. When the spirit of good will extends to the customer in the contributing territories, a fifth purpose is ac- complished in a close urban and rural trade contact. In the average town, as well as in the city, there have grown up neighborhood stores of surprising strength and popularity, making their own demands for the trade of that neighborhood. Cooperative retail ad- vertising accomplishes a sixth purpose by helping a neighborhood to retain trade wiiich properly belongs there. Types of Cooperative Advertising There are many types of cooperative retail ad- vertising. One of the earliest and most successful efforts is known as the "Neosho" or "Golden Rule" sales-day plan. It is a combination of farmers' auc- tion sales and merchants' special sales. It is called the "Golden Hule" sales-day plan for the reason that uniformity in advertising, both as to the amount of space and the kind of type, is strictly adhered to, thus eliminating any advantage which the largest firm (Continued on Page 18) September 15, 1932 THE TOBACCO WORLD 52nd year 15 PERMIT YOUR CUSTOMER To Enjoy THAT PARTICULAR FLAVOR THAT Only A Good Cigar Can Give By Packing Your Cigars IN THE NEW IMPROVED "AUTOKRAFT" CIGAR BOXES Phi la., Pa. Hanover, Pa. Cincinnati, Ohio AUTOKHAFT BOX CORPORATION Lima ioi\ York, Pa. Chicago, 111. Ohio Detroit, Mich. Service Wheeling, W. Va. News from Congress (Continued from page 8) on chewing and smoking tobacco dropped $346,786, from $58,376,942 to $58,030,155, and receipts from snuff decreased $344,164, from $7,190,466 to $6,846,301. Other losses were $44,135 on small cigars, taxes on which dropped from $270,644 to $226,508 ; $14,156 on large cigarettes, which declined from $45,815 to $31,- 659, and $7423 on miscellaneous collections, which de- creased from $10,153 to $2730. The only item to show an increase in revenue was cigarette papers and tubes, collections on which in- creased $258,676, from $1,441,826 to $1,700,502. Approximately two-thirds of all the cigarette taxes and one-third of the taxes on manufactured to- bacco and snuff were collected in North (Carolina, where receipts on cigarettes were $196,196,159 and on tobacco and snuff $22,781,703. Pennsylvania contributed the greatest total on cigars, $4,202,953. CIGAR BOX MANUFACTURER DIES Philip Temple, cigar box manufacturer of Evans- ville, Ind., for more than thirty years, died suddenly at his home, following a heart attack, on Monday, Sep- tember 5th. Funeral services were held on Thursday afternoon from his residence in Evansville. Mr. Temple was sixty-one years old, and is sur- vived by his w^dow, three sisters, and two brothers. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION ,e^^/S[f!^t^ OF UNITED STATES '^^k^V\t^> JESSE A. BLOCK, Wheeling, W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Pretident JULIUS LICHTENSTEIN, New York, N. Y Vice-Preiident WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL, New York, N. Y Vice-President H. H. SHELTON, Washington, D. C Vice-President WILLIAM T. REED, Richmond, Va Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice President ASA LEMLEIN, New York, N. Y Treasurer CHARLES DUSHKIND. New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City President MILTON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN, New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN, New York, N. Y First Vice-President IRVEN M. MOSS. Trenton, N. J Second Vice-President ABE BROWN", 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN ;::--S'^"!^«"* SAMUEL WASSERMAN Vice-President THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS C. A. JUST, St. Louis, Mo •••.•••E''")^'^"* E. ASBURY DAVIS, Baltimore, Md Vice-President E. W. HARRIS, Indianapolis, Ind Vice-President JONATHAN VIPOND. Scranton, Pa Vice-President GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer MAX JACOBOWITZ, 84 Montgomery St., Jersey City, N. J Secretary 16 52nd year THE TOBACCO WORLD September 15, 1932 September 15, 1932 Say You Saiv It in The Tobacco World 52nd vear 17 FREE EMPLOYMENT SERVICE 0 MEET the problems brought about by the continued lethargy of business, as it affected the professional technical worker then and now unemployed, **The Engineers' Club of Phila- delphia," in January of this year, sponsored the Phila- delphia Technical Service Council. This group con- sists of representatives from twelve National Engineer- ing Societies, and the association of the State Employ- ment Commission of Pennsylvania has been secured. Thus all requests for technical men are handled through the committee for the Philadelphia Metropolitan area. The work of the committee, consisting at present of six office workers and fifteen field callers, is divided into four main divisions: Placement, Field Contacts, Publicity, Research. The primary object is to secure placement for the registrant, at the same time securing for the employer the best talent available. Since volun- teers from among the registrants do the work, this valuable aid to industry is available to employer and employee alike, without charge. On file are the applications of 1005 men, who have given their personal, educational and professional qualifications. Copies are submitted to the prospec- tive employer and include photographs of the appli- cants. A system of status returns insure that applicants that are referred are definitely known at the time to be seeking employment. Altogether, the men registered here have experi- ence in 115 varied occupations, in over 200 diverse in- dustries, and includes seventy different types of engi- neers. That one may be assured of securing adequate per- sonnel here, the following data compiled from the regis- trants' records is given to show that they represent a cross-section through the wage and age groups: Salary Group Using Per Entire Registration cent. Per Not given 18 Age Group cent. Under $2500 38 Under 30 35 $2500-$3500 23 30-40 34 $3500-$5000 17 40-50 24 Over $5000 4 Over 50 7 100 Colleges Per Represented cent. Local 36 United States 47 Foreign 5 None 12 100 100 Comparing the above percentage in the various groups, supports the oft-made assertion that their services are undervalued. Of additional interest is that one-third of the applicants are members of Tech- nical Societies. Sixty-three percentum of the regis- trants are married. Fifty per cent, of the men are qualified as designers and draftsmen, largely because of the emphasis placed upon this phase of engineering in their field of train- ing courses. Additional information will be gladly given any- one. Address the Philadelphia Technical Service Com- mittee, in care The Engineers' Club of Philadelphia, 1317 Spruce Street, Philadelphia, or 'phone, PENny- packer 5234. Mr. Renshaw Borie is in charge of the committee's activities, as manager, and the Publicity Division, from whom this data has been secured, is under the direction of Mr. Denis Heboid. N. A. T. D. ASKS CO-OPERATION OF MANUFACTURERS 3E National Association of Tobacco Distribu- tors is rapidly organizing its forces for an aggi-essive campaign to better conditions throughout the tobacco industry, and while it is primarily an organization of tobacco distributors, any movement which will be of benefit to them will naturally be of benefit to the entire industry, and with this thought in mind. Max Jacobowitz, secretary of the N. A. T. D., has addressed the following letter to all the important manufacturers in the industry. **I am addressing a similar letter to every im- portant manufacturer in every branch of the tobacco industry in the United States. The National Association of Tobacco Distributors has as its ulterior purpose, policies of interest to the entire industry. I would like to have your valued opin- ion as to whether an organization such as the National Association of Tobacco Distributors should function, and if you agree that its importance is equal in magni- tude to the manufacturer and distributor alike. Although the adopted rules do not at present pro- vide that manufacturers are eligible for membership, I feel that you share our belief that an association such as this, with reasonably adopted ethics and judiciously devised policies lawfully pursued and arrived at through conference, will bring about the much needed betterment that is desired and hoped for by all. I regret that I cannot invite you to become an ac- tive member for the reason stated above, but I feel that you. want to voluntarily subscribe to the financial structure thereof. Thanking you in advance for your anticipated co- operation, I am, Very truly yours, THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS. By Max Jacobowitz, Secretary." M J :ML J UNITED MAKES OFFER TO OWL HOLDERS A petition to compromise the suit brought by W. W. Hindman on behalf of the Owl Drug Company against Drug, Incorporated, United Drug Company and Louis K. Liggett Company was approved on Au- gust 30th by Superior Court, Judge Hahn, of Los An- geles. The judge completely exonerated the officers of the corporations named in the suit of any wrongful acl or unlawful intent. Mr. Hindman charged in his suit that Drug, In- corporated, had obtained the common stock of Owl Drug to acquire and ruin its manufacturing drug busi- ness. To avoid the expense of the litigation, United Drug offered Owl Drug preferred holders one share of Dnig, Incorporated, common for two and one-half shares of Owl preferred, and agreed to cancel a debt of $500,000 covering goods sold to Owl by United Drug. In connection with the exchange offer it was stated 43,000 shares of Owl preferred stock are now deposited in escrow for exchange which, it is under- stood, United Drug intends to "take up." The offer of United Drug will remain open for thirty days. P. LORILLARD COMPANY DIVIDEND The P. Lorillard Company has declared a regular quarterly dividend of 30 cents a share on the common stock, payable October 1st to stockholders of record on September 15th. NORTH CAROLINA PRICES HIGHER UNDREDS of thousands of dollars poured into the pockets of eastern North Carolina tobacco farmers last week as marketing of the 1932 new bright B crop began with prices sky- locketing far above initial offerings last year. Especially were prices higher — in some cases twice or three times last year's — on the lower grades. Wilson, one of the world's largest markets, re- ported total sales for the day of 357,158 pounds for an average of $10.89 per 100. Trading was reported heaviest in tobacco of only fair quality. With the official markers far behind, sales at Kinston were reported approximately 750,000 pounds at an average of from $10 to $11, an increase of from 25 to 30 per cent, over last year's opening day figures. The lower grades were selling, in some cases, four or five times as high as last year. Selling was in progress for eight hours. Rocky Mount markets sold 110,990 pounds, for an average of $12.07. Farmers at AVashington received approximately $7.97 per hundred for 50,974 pounds, mostly lower grades, as compared with $6.39 last year. New Bern fioors liandled an estimated 75,000 pounds at $12.50, while Ahoski sold 85,558 for an average of $13.0() or almost double the general average price for the first day's sales in 1931, and there was little of the higher grades on the floor. Approximately 85,000 pounds were traded at Goldsboro. Official figures available for the first floor only placed the average at $10.8(3, comparcMl with $7.95 last year, and figures for the second floor were believed about the same. The day's offerings consisted largely of first curing and lugs, with prices ranging from $2U to $45. According to the United States Department of Agriculture, one day's average prices on the Florence, South Carolina, market were: Lemon leaf, B 3 L, $29.70; B 40, $21.10; B 50, $14.90; B GO, $9.10. Lemon cutters, C 50, $22.30. Lemon lugs, X 10, $19.G0; X 20, $15.50; X 30, $11.20; X 40, $6.40. Sales were heavy on both Darlington and Pam- plico markets. Offerings were made up principally of good to common quality leaf with small percentages of cutters and lugs. Price declined greatest for orange side of fair to common leaf and fair quality lugs. One lot fine tobacco sold at $110 per hundred at Darlington. One lot wrappers sold at $102 per hundred pounds and choice quality leaf sold up to $55 per hundred at Pam- plico, but quantity insufficient to quote averages. R. J. REYNOLDS DIVIDEND Directors of the R. J. Reynolds Tobacco Com- pany have declared reguhir (quarterly dividends of 75 cents a share on the connnon and common B stock of the company, payable October 1st to stockholders of record September 17th. George Ziffer])hitt & Company have launched their new five-cent size of the *'IIabanello" brand on the market and it is meeting with a grand reception. The new size is four and a half inches long, and is a blunt shape with Havana filler, and will undoubtedly prove a valuable addition to the "Habanello" line at this time. JlVl«WWW»>UlV»tJlX» M^,t:^;tLl':ty^lMI»iJliLMlLg!»yiayiliLM^M!lL^^ Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c ) payable strictly in advance »ir)«\iravirrs\ir)ft(ir!«^r7S\ir)«\ir)«vir7S\irrsvir/i\i FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE No, 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. 1). Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD-ESTABLISHED CIGAR MANUFACTURING FIRM OF Hand-Made Havana quality cigars, offers fine Havana cigars in any quantity to discounting dealers, at profitable prices. Satisfaction absolutely guaranteed. If interested in first and repeated profits, address for particulars "Fair Dealing," Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATINO CIGAR FLAVORS Make tobacco meKo%v and smooth In character and impart a most palatable flavor FLAVORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. AROMATIZEB. BOX FLAVORS. PASTE SWEETENERS FRIES Sl BRO.. 92 Reade Street, New York ACKER, MERRALL & CONDIT IN RECEIVERSHIP HE old established firm of Acker, Merrall & Condit Company, New York City distributors of high-^rade groceries, etc., for twenty-nine years since their reorganization of the firm established in 1820, was placed in equity receivership on September 1st, l)y request of Austin, Nichols & Com- pany, Incorporated, a creditor. The Irving Trust Company was appointed receiver for the company. The company is reported to have been operating at a loss, due to changing conditions, for some time. The original Acker, Merrall & Condit firm was founded in 1820, and the present firm was incorporated in IDOo. Its wholesale tobacco department was taken over by Pal>er, Coe & Gregg, Incorporated, in 1922. AMERICAN TOBACCO COMPANY DIVIDEND The American Tobacco Company has declared quarterly dividend of $l.r)0 a share on the preferred stock of the company, i)ayable October 1st to stock- holders of record on Septem])er 10th. The ** Down-Town Club'' located in the Ledger Building, Sixth and Chestnut Streets, has recently opened a dining room for the public which is being well patronized. Yahn & McDonnell are stocking the cigar stand in the new restaurant whi-ch is also enjoying a good business on "Optimo," "Blackstone" and other popular Yahn & McDonnell brands. OCTOBER 1, 1932 18 52nd year Say You Saw It in The Tobacco World September 15, 1932 Tobacco Merchants' Association Registration Bureau, JtV ™rcm Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowance of $2 will be made to members of the Tobacco Mer- cliants Association on each registration. Note B— If a report on a search of a title necessitates the reporting of more tV^"? ^^"*/-i?? "V.^l" '^"^ ,'^" ^^^" twenty-one (21). an additional charge of One iJollar (?1.00) wi 1 be made. If it necessitates the reporting of more than twenty ^^rv^V n u * '^^^ '^^" thirty-one (31), an additional charge of Two Dollars (?^.U0) will be made and so an additional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATION NEWBEE:— 46,077. For cigars. August 27, 1932. David E. New- man, Manchester, Conn. ADVERTISING HOLDS DRUG EARNINGS UP RUG, IX(X)KP()RATEI), reports for the six montlis ended June 30, 1932, net income of $7,684,021 after all charges and reserves, com- pared with $10,G56,053 for the like period of 1931. After the payment of a small amount of divi- dends on stock of a subsidiary, earnings for the half year were equivalent to $2.19 a share on the 3,501,499 shares outstanding at the end of the period. This com- pares with $3.04 a share on the same number of shares in the first half of 1931. The consolidated surplus account showed an in- crease in earned surplus to $25,652,482 on June 30 from $24,974,783 on J)ecem))er 31 last. Dividends paid to stockholders in the six months totaled $7,002,998. Current assets as of June 30 stood at $58,830,145, including cash of $14,637,704 and marketable securities (at cost) of $11,842,359, against current liabilities of $8,350,523. At the end of 1931 cash totaled $16,085,311 and marketable securities $10,132,520. Of marketable s^t^t^tX8^tg^-i^^^^i^^*-JJtWJtVI/Jl^Jl.v«/Jl^>^tX^ . • . . i»4^vg/JlvS/JLV»jix»yj:.vP!/^;.y>>j;^t^^ After all "^nothing satisfies li a good cigar ke^ BUSINESS IS LOOKING UP! Follow the Trend and Increase Your Sales With • • WOODEN BOXES • • Let your sales convince you that more customers select cigars from wooden boxes than from any other form of container. In Wooden Boxes the whole length, shape and color of the cigar is open for easy inspection and selection. Furthermore the cigar flavor and aroma is ripened to its fullest fragrance in these containers. WHEN BUYING CIGARS Remember thar Regjrdlest of Pr THE BEST CIGARS ARE PACKED IN WOODEN BOXES Volume 52 THE TOBACCO WORLD Number 19 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the Ist and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., imder the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, OCTOBER 1, 1932 Foreign $3.50 PHILADELPHIA RECEIVES ''CORONAS" ENTHUSIASTICALLY HE Philadelphia market received theiT first shipment of the new "Corona" brand, now be- ing manufactured at Trenton, N. J., on Satur- day of last week and they were immediately placed at vantage points throughout the city by the local distributors of the brand, Yahn & McDonnell, and eagerly bought by critical smokers who were anxious to compare the new cigars with the old imported brand. The test was apparently satisfactory, for on Mon- day Yahn & McDonnell were besieged by retailers clamoring for more of the brand as their first shipment was exhausted. Paul Brogan, vice-president of Yahn & McDonnell, stated that in his twenty years' experience in the cigar industry he had never seen anything cause such a sen- sation in the industry as the first shipments of the new ** Corona" brand. New prices of the brand are approximately 50 per cent, of the foimer price when the brand was imported from Havana. The "Belvedere" size now^ retails at 15 cents each, one-fortieth box $3.50; "Corona," 35 cents, three for $1, one-fortieth $8; "Corona Chicas," 20 cents, one-fortieth $4.75; "Perfectos," three for 50 cents, one-fortieth $4. UNIVERSAL LEAF INCOME The Universal Leaf Tobacco Company, for the year ended June 30th, shows consolidated net income of $861,851 after depreciation and Federal taxes, but before reserves for inventory adjustments and contin- gencies. This is equivalent to $2.50 a share on 142,914 no-par shares of common stock after the 8 per cent, preferred dividends. There has been provided from surplus $500,000 which has been added to reserves, including $388,873 to absorb any loss sustained in old crop tobacco included in the inventory. The balance is a provision for any doubtful items or adjustments which may be necessary. Net profit for the year to June 30, 1931, was $1,227,712, or $5.07 a common share. UNITED CIGAR LOSS $2,400,000 IN HALF YEAR Examination into the position of the United Cigar Store Realty Holding, Incorporated, prior to the filing of a petition in voluntary bankruptcy by the United Cigar Stores of America, Incorporated, and subsidiary concerns in August was conducted in New York on Sep- tember 17th before Referee Irwin Kirtz by counsel for the receiver, the Irving Trust Company. A. C. Allen, vice-president of the United Cigar Stores, testified that the directors decided to file the bankruptcy after accounts had revealed a loss of $2,400,000 for the first six months of 1932. ADVERTISING INCREASES LIGGETT & MYERS EARNINGS ONTRARY to the general trend of business during 1932, the Liggett & Myers Tobacco Company is reported to have increased the sales of their "Chesterfield" cigarettes to a substantial extent, and likewise the net earnings of the company. It is more than a possibility that Liggett & Myers will this year show an improvement in earnings over 1931, when net earnings were equal to $6.87 a share on the 3,136,919 combined common and common B shares. It is even possible that earnings may exceed the all-time record of $24,002,315, or $7.15 a share shown in 1930. An aggressive advertising campaign has been an important factor in improving "Chesterfield's" pro- portion of aggregate sales. "Granger," Liggett 's pipe tobacco, has also been extensively advertised, and has shown a gain in actual volume, as well as in propor- tion of total business in that line. Of its other brands, "Velvet," for pipe and cigar- ette, has done better than hold its own; "Duke's Mix- ture" cigarette-rolling tobacco, will show substantially larger production this year than for 1931. A hopeful sign in the cigarette division has been the gradual lessening of percentage decline in con- sumption from last year, during the past few months. The decline reached a peak in April, when the Internal Revenue Department figures sliowed a drop of 20.15 per cent, in withdrawals for consumption, as compared with 1931. In May, the decline was only 16.87 per cent.; in June, 8.24 per cent.; and in July 10.89 per cent. A decline of as little as 2 x)er cent, for August has been rumored. Liggett & Myers pays a regular dividend of $4 a share annually on the common and common B; it has also been usual, for the past several years, to declare an extra of $1 a share at the January directors' meet- ing, based on the earnings for the preceding year. There seems little doubt that 1932 earnings will be sufficient to justify declaration of a similar extra next January. On a $5 a year basis, yield on the B stock at the year's high is better than ly^ per cent. MR. AND MRS. EUGENE D. KLEIN CELEBRATE GOLDEN WEDDING On October 1st Mr. and Mrs. Eugene D. Klein, of 211 Central Park West, New York City, ccle])rated their golden wedding anniversary. Mr. Klein is on the board of directors of the Consolidated Cigar Corpora- tion and the head of that company's manufacturing ac- tivities. 52nd year THE TOBACCO WORLD October 1, 1932 ©HIbADEli] MIA. Mfv: %.r^^ WANAMAKER SMOKE SHOP OPEN MONDAY HE new Wanamaker smoke shop, an innovation in the Wanamaker establisliment here, and also in tlie local trade, will be opened oiT'Monday, October 3d, and will cater exclusively to meii. The new smoke shop is located in the concourse of the new Wanamaker Men's Store in the new Lincoln- Liberty Buildint*-, corner of Broad and Chestnut Streets, and will be the finest fitted store in this locality. The Wanamaker Men's Store w^ill occupy six floors, one of which is below the street level, andVill be de- voted exclusively to men's merchandise. The smoke shop will be located in the floor below the street level, and will be under the management of A. L. Peters, who was fomaerly associated with the D. Emil Klein Company, and who is well qualified from experience to cater to the smoking needs of the male sex. The store will cany an exclusive line of smoking tobaccos, pipes, cigars and smokers' articles, and will feature private l)rands exclusively. The finest of high- grade cigars will l)e offered in the finest shapes and sizes and all ])earing tlie John AVanamaker label. The opertiing of the store will be watched with a great deal of interest by the trade throughout the city, and, if successful, may result in a similar venture by other high-class department stores in the city. Trade Notes E. A. Kline, of the .Medalist factorv, was in town last week visiting local distributors of his brand. N. E. Nichols, of the ** Belinda" factory in Havana, was a visitor last week and secured some substantial orders for holidav business. The **Chukkers" cigarette of Simpson, Studwell & Swick, IS being well displayed in this territorv and meeting with a ready call. John AVagner & Sons are local distributors of the brand. Irving Studwell, of the Health Cigar (bmpanv, was in town last week and placed his ** Crusaders'" cigar, retailing at ten cents, for distribution with John Wagner & Sons. T. H. HART DIES HEODORE HENRY HART, well-known dis- tributor, and head of the long-established firm of T. H. Hart & Company, which was located on Market Street west of Broad for nearlv fifty years, passed away suddenly at his home in Ard- more. Pa., on Sunday evening, September 25th, follow- ing a heart attack. T. H. Hart & Company was at one time one of tho largest importers and distributors of fine cigars in the city, and continued in business at the old stand until about a year ago, when the business was liquidated due to business conditions. Funeral services were held on Wednesday, Sep- tember 28th from the Andrew J. Bair & Son funeral home, 3925 Chestnut Street, with interment private. The Cliff- Weil Cigar Company, Richmond, Va., IS expanding the distribution and sale of Bavuk cigars in that territory and recently were assisted by F. L. Brumsey, Bayuk factory man. The "Monticello" brand, controlled by John Wag- ner & Sons, is meeting with an increased call in this territory, and prospcts are bright for further in- creases on this quality brand. The Galesburg Cigar Company, Galesburg, 111., IS featuring Bayuk brands and are forw-arding substan- tial orders regularly to the factory headquarters at Ninth Street and Columbia Avenue. The Elite Cigar Company, Holmesboro, Kv., re- cently consummated a successful drive on Bavuk cigars in their sector with the aid of F. H. Stutz, Bavuk fac- tory man. A special drive on ''Listerine" cigarettes will be launched very soon by Yahn & :Mcl)onnell, local dis- tril)utors of the brand, which is expected to increase substantially the sale of this brand, which has already exceeded expectations in this territory. Percy Gibbon, Buffalo, N. Y., territorial manager for Bayuk Cigars, Incorporated, is the proud father of a bouncing baby daughter and' is receiving the con- gratulations of his many friends. He reports that mother and daughter are doing nicely. October 1, 1932 Say You Saw It in The Tobacco World 52nd year "Nature in the Raw**— as pot' trayed by the great painter of the American Indian, N. C. Wyeth . . . inspired by the mas- sacre of Custer's dauntless band at Little Big Horn, Montana, by the savage Sioux Indians, June 25, 1876. *'Nature in the Raw is Seldom Mild" — and raw tobaccos have no place in cigarettes. No raw tobaccos in Luckies — that^s why they're so mild Copr., 1932, The American Tobacco Co. WE buy the finest, the very finest tobaccos in all the world — but that does not explain why folks everywhere regard Lucky Strike as the mild- est cigarette. The fact is, we never overlook the truth that "Nature in the Raw is Seldom Mild" — so these fine tobaccos, after proper aging and mel- lowing, are then given the benefit of that Lucky Strike purifying process, described by the words —"It's toasted". That's why folks in every city, town and hamlet say that Luckies are such mild cigarettes. "It's toasted" That package of mild Luckies 52nd year THE TOBACCO WORLD October 1, 1932 PUERTO RICO DEVASTATED BY HURRICANE DEVASTATING hurricane struck the Island of Puerto Rico on Monday night, with a wind ve- locity which is said at times to have reached 130 miles an hour, leaving destruction in its wake and is believed to have been equal to the disaster which visited the island in 1928. Definite reports of damage to tobacco plantations and storage houses had not been received up to the time of going to press but it was said that the entire island was damaged or devastated. Two hundred persons were known to have been killed and more than one thousand persons injured. A preliminary check indicated that none of the Ameri- cans living there was killed or injured, but no American resident escaped without property damage. Trade Notes Albert Reiser, operating a cigar store at 1630 Ma- combs Road, Bronx, New York, filed a voluntary peti- tion in bankruptcy last week in the District Court, list- ing liabilities of $1761 and assets of $1000. Frank Fallon, well-known "Partagas*' representa- tive for United States and Canada, who has been seri- ously ill for several weeks, is now recuperating at At- lantic Citv, and his manv friends in the trade are wish- ing him a speedy recovery. George Stocking, of the Arango y Arango factory in Tampa, was in town last week visiting John Wagner & Sons, local distributors of the "Don Sebastian" clear Havana brand, made in bond, which is enjoying a splen- did sale here in the club and hotel stands. John L. McGuerty, United States representative for the Romeo v Julieta fact or v in Havana, was a vis- itor at John Wagner & Sons, local distributors of the brand, last week, and reported a nice increase in busi- ness on that brand, with excellent prospects for future business. Tom Allely, local factory representative of the Christian Peper Company, is covering his territory, consisting of eastern Pennsylvania, New Jersey, Dela- ware, Maryland and Virginia, on "Listerine" ciga- rettes and other products of the company with marked success. Charles Cox, who is promoting the sale on Bayuk cigars in the territory covered by the Rothejiberg- Schloss Company, Kansas City, reports that "Mapa- cuba" cigars are going splendidly in that section and Bayuk brands are nicely distributed with consumer demand on the increase. Benjamin Lumley, representing the Sommerfiehl Cigar Company, Miami, on their ''Dulce" and "Verdi" brands, and Garcia y Vega, Tampa, on their clear Havana brand, "Garcia y Vega," is visiting northern Pennsylvania and New York State in the interest of these brands and reports a highly successful trip. TWO NEW LORILLARD DEALS XDP:R date of September 16th, the P. Lorillard Company mailed letters to all distributors of "Rocky Ford" and "Muriel" cigars notifying them of special inducements to be offered dur- ing the month of October on these two popular brands of cigars. With each one-twentieth box of "Rocky Ford" in- vincibles sold to the retailer, the jobber is authorized to give to the retailer fifty books of "Union Leader" redi-cut cigarette papers free, provided each retail cus- tomer to whom the deal is sold will display at least one box of "Rocky Ford" invincible one-twentieths in a prominent place on the counter or on top of the show case. The gratis off'er on the above basis will api)ly on any quantity sold to any one retailer. "Rocky Ford" cigars sold under this offer will not apply for any other deal, and only such orders as are actually shipped by the distributor will apply under this offer. The distributor is also authorized to offer each of his salesmen a special inducement for every box of "Rocky Ford" invincible one-twentieths sold under the above offer. For every box of "Muriel" Perfecto cigars, one- twentieths, sold to the retailer duiing the month ot October, the distributor is also authorized to give one l)ox of "Old Gold" 50's free, provided the retailer to whom the deal is sold will display a V)ox of "Muriel" Perfecto one-twentieths on the top of the counter or on top of the show case in a prominent ])lace. No other deal will apply on "Muriel" Perfecto cigars sold under the above order. The "Rocky Ford" offer applies to all distributors in the United States, except the State of Alabama. But, in the New England States, New York State and the Metropolitan District of New York, New Jersey and Stamford, Conn., the deal will consist of forty books of "Rockv Ford" matches with each one-twentieth box of • "Rocky Ford" cigars, instead of fifty books of "Union Leader" cigarette papers. The above generous offers will undoubtedly result in substantial increases in the sale of "Muriel" Per- fectos and "Rocky Ford" Invincibles and also win many new smokers to the brand due to the ])rominent display which is to ))e given these brands in order that the retailer may participate in the advantages of the offer. DUNHILL INTERNATIONAL REPORTS Dunhill International, Incorporated, estimates net loss for the first half year 1932 at $40,954, as compared with a loss of $111,423 in the same period of 1931. AMERICAN SUMATRA REPORT The American Sumatra Tobacco Company reports for the year ending July 31, 1932, net loss of $3()l,()(j0, after all charges, as comj)ared with net loss of $170,481 in the preceding year. Abe- Berkowitz, of the (Christian Peper Tobacco Company, St. Louis, was in town last week visiting Yahn & McDonnell, distributors in this territory for "Listerine" cigarettes, "Wellington" smoking to- bacco, and the other high-grade brands of the Christian Peper Company, and reported excellent business on their brands. October 1, 1932 Say You Saw It in The Tobacco World 52nd year NEVER PARCHED - NEVER TOASTED Camels are alway. FRESH! SWITCH to Camels and learn the mildness of a fresh, cool -burning cigarette. A blend of choice Turkish and mellow, sun-ripened Domestic tobaccos, Camels are never parched or toasted. That's why we say smoke them for one day, then leave them — if you can. R.J. REYNOLDS TOBACCO COMPANY, Winston-Saiem, N. C Jjon't remove the Camel Humidor Pack— it is protection against perfume and powder odors, dust and germs. Buy Camels by the carton for home or office. The Himidor Pack keeps Camels fresh • ItSS. R. J. Reynold. TobMco CompMiy ''IMfa^J^^'fiffl'By^ ^iWfiyrf'lHBIiHJIli' 8 52nd year THE TOBACCO WORLD October 1, 1932 October 1, 1932 THE TOBACCO WORLD \MMm . . iim^ .Tifrr,T|i m iiii- IBIl Tin News From Congress _ -AND FEDERAL Departments NACTMENT at the next session of Congress of legislation to protect Anierican industry against the competition of products, including tobacco, from foreign countries having depre- ciated currencies is advocated in a report submitted September 23 to the United States Chamber of Com- merce. In proposing principles to be observed in drawiuL^ up legislation dealing with this subject, it was pointed . 1 r l^^/^^Poi't, the question of levels of duties as established by the tariff act is of less importance than provisions which should ultimately work to preserve tor American manufacturers those levels of rates which Congress intended to be maintained when 't passed the tariff bill. '' Upon all imports, dutiable or free, of articles pro- duced in the United States in quantities of recognized commercial significance and not of a class which it has been the policy of Congress to exempt from duty irre- spective ot competitive conditions, and which are im- ported trom a country the currency of which is depre- ciated by 5 per cent, or more below par," it was de- clared, * there should be levied compensating exchange duties adequate to offset the depreciation, but in the event internal prices of the country in question had risen by 20 per cent, or more, administrative authorities should have the power to decrease the rate of these duties to a point such that they will equal the influence ot increased prices and wages in the country upon the cost ot production." ^ ^ Betvyeen September 1, 1931, and June 30, 1932, it was pomted out the currencies of twenty-two counties had depreciated 5 per cent, or more. The imports from those countries totaled $393,278,000, representing 52.6 per cent, of our total imports, for the first half of 1932. .« f T l!,^^«^5»ificant fact, therefore, ' ' the report com- mented, -that over half of the products at present be- ing impor ed into the United States are benefiting from the advantage of depreciated currencies. ' ' Analysis of our import trade indicates that re- ceipts from depreciated currency countries have fallen only 7.7 per cent, while imports from other countries show a decline of 34.6 per cent. Seven depreciated cur- rency countries actually showed an increase in their trade with the United States, it was said CJ3 Cj3 Ct3 . New regulations governing the packaging of cigars have just been issued ))y the Commissioner of Internal Revenue, permitting the packing of not more than ten large cigars in lightweight cardboard parcels wnth cutout windows or open at one end. FffQM_OUR^tyASHtNOTON BUREAU €2ZAiBEe BuiipiNG 1 .• "^^^^.n^w regulations, amending Article 76 of Regu- lations No. 8, provide that ''the statutory number of cigars weighing more than three pounds per thousand, contained in the box, may be subdivided by the use of paper or ribbon bands, or separated into parcels of not more than ten cigars each by inclosure in foil, wax paper, cellophane, or lightweight cardboard with cut- out windows or open at one end. ''The caution notice label, factory brand, and clas- sitication label must not appear on any subdivision or parcel ot a statutory package, but must appear only on iffixed^ '^' package on which the requisite stamp is ** Cigars so subdivided into parcels must remain in the stamped statutory box until they are sold and deliv- ered direct to the consumer, and the whole number of cigars packed in each box must correspond to the de- nomination of the stamp affixed to the box." C?3 Ct] cj3 New rates of postage on fourth class or parcel post mail went into effect October 1, under the terms of orders issued by the Postmaster General April 7 last Ihe new schedule is designed to equalize the rates and make the charges on parcel post mail "more nearly commensurate with the cost of its handling, transporta- hon and delivery - it was explained by the department. t igures compiled by the department showed that there was a material loss on parcels carried within the first three zones, while those going beyond the third zone were handled at a profit. There is no change in the rates on parcels for local delivery, while the increase per parcel on those weigh- ing from one to ten pounds mailed to the first three zones will not exceed two cents for the first and second zones and only one cent for the third zone; on parcels weighing from eleven to twenty pounds mailed to those zones the increase for zones 1 and 2 will not exceed three cents, and for zone 3 will be only one cent On parcels going beyond the third zone *the in- creases wdl not exceed two cents on any parcel, being applicable only to parcels weighing less than five pounds, while on parcels weighing more than five pounds the rates will in most instances be reduced. Ihe new rates inaugurate an innovation in that for some zones they include a fraction of a cent, such frac- tion, however, being counted as a full cent in the total amount of postage on any one parcel. Packages up to seventy pounds in weight and as large as 100 inches in length and girth combined may be mailed as parcel post. ^ (Continued from page 16) LIGGETT DRUG ASKS RENT REDUCTION NLESS landlords w^ho rent store space to Louis K. Liggett Company, drug store chain opera- tors, consent to rental reductions commensurate with the decline in prices and values generally, the company may be reorganized and default on pres- ent leases, it was stated last w^eek by George M. Gales, vice-chairman of Drug, Incorporated, and president of Louis K. Liggett Company. A letter has been sent to landlords of Louis K. Liggett Company explaining the situation. Negotia- tions have been going forward with landlords for sev- eral months but little progress has been made. The letter sent to landlords, according to ^Ir. Gales, is the final attempt to arbitrate the matter. The letter in part states: "Since 1929 the com- pany's volume of business has fallen off 30 per cent. In dollars this amounts to $20,000,000 annually. The loss of this volume not only long ago wdped out the last vestige of the company's profits but it is now involv- ing it in heavy losses w^hich it cannot long sustain. "Added to the sales losses of the company are heavy losses in its real estate operations. These opera- tions have been a necessary part of the comxjany's chain-store business. "The failure of this company will mean a loss to its landlords of a tenant. If the company can save itself by a reduction of rents to present market values, the landlords will continue to have a tenant who can pay all their property is w^orth." Mr. Gales stated that all expenses of the company have been pared to the bone except rents. Employees have accepted three severe salary cuts and all inciden- tal expenses have been reduced. "Further sacrifices cannot be asked of employees," the letter stated, "further reductions in operating ex- penses are impossible; yet increasingly heavy losses continue to be suffered by the company." The communication also explained that the com- pany had to rent more space than it could occupy to obtain desirable locations and had to sublet what space it could not use. The company itself now had about 1000 tenants on sub-leases "more than half of whom themselves have gotten into financial difficulties w^hich have resulted in failures with consequent defaults, abandonments or forced readjustments of rent." 52nd year CUBAN CROP SHORT Recent reports confirm that the 1932 Cuban to- bacco crop will be far below that of the previous year due largely to curtailed plantings. Weather conditions have not been altogether satisfactory. Lack of cool weather during the winter months has somewhat im- paired the general quality of the tobacco, although it is said to be of good burn. Prices, Avhich are still un- remunerative, w^ill obviously depend on the demand the new crop wdll have. Not many sales have been made in the country to date. Most farmers are pack- ing their own tobacco and few "vegas" have come to the market as yet. The cigarmakers' strike w^hich began on January 14th has practically settled itself. Habana cigar workers are willing to resume work but as most of the manufacturers have in the meantime moved their factories to interior points, many are find- ing it difficult to secure employment. — (American Com- mercial Attache Albert F. Nufer.) PHIL M. PHULOFAX BROADCASTS ANOTHER IDEA TO INCREASE CIGAR SALES ERE'S a hint for hospitality and a boost for business," says Phil M. Phulofax, D. B. L, the well-known cigar man, in a letter written to this publication from the Bayuk offices in Philadelphia. "One evening soon after my return from my an- nual summer expedition of discovery, I accepted an invitation to visit my personal and business friend, John B. Widawake. John and I have been cronies since the days when we both sold cigars across the same counter with no small degree of friendly rivalry. Johnny had invited a number of the boys and I noticed that he was passing around a generously proportioned humidor containing several types of cigars — pana- tellas, perfectos, and coronas. " " 'You see I'm practicing what I preach these days,' said Johnny, 'or rather, I've begun to preach what I usually practice. You can't confine your busi- ness thinking to business hours if you expect to in- crease the gate receipts and this particular idea sparked one evening during a game at Bill Stingy 's. You see I had forgotten to take along a couple of* ci- gars in my pocket and while Bill sat there and puffed at his big perfecto, I grumbled to myself, wondering how a fellow could keep his poker face without a cigar or what good a royal flush might be without that boon companion. Then I realized that there are a good many folks like Bill who never think to have a supply of cigars on hand for entertainment. Just at that point I saw a new sales idea taking shape. " 'Next morning I went right at it, going over my list of friends, noting that very few of them kept a good assortment of cigars to offer to their guests, and mapping out a little campaign which I thought ought to lure some extra jack into the till. " 'First, I laid in a special supply of good looking humidors. I displayed several of them on top of the show case with cellophane wrapped cigars inside. I offered the combination of humidor and cigars at a h-pecial rate, somewhat less than the price of both taken separately. I placed two such boxes in the center of my window with a sign to draw the buying eye and plant the entertainment idea in the customer's 'mind. A Good Cigar Makes a Lasting Friend Offer One to Your Guests After Dinner, At Cards, For Any Masculine Gathering It's a Real Luxury That Costs Little " 'And inside the shop, on the show case, I re- peated the theme and announced the special offer of the humidor, plus 50 cigars. Naturally, I didn't let the signs do all the talking. It worked. I sold all my original crop of humidors and sent for more. More- over, I noticed in a short while that some of my cus- tomers were buying more evtra "company" smokes.' "Attaboy, Johnny! It's new ideas like this that keep Widawake 's one of the busiest and triggest shops in town and this particular idea is one that can stand a lot of pushing. Do your customers buy enough ci- gars for entertainment purposes? They probably serve candy, or salted nuts after dinner, at bridge games and when folks just drop in. Why not cigars for the mas- culine element. Tell 'em, show 'em, and sell 'em on the fact that cigars add a touch of luxury which cannot be secured in any other wav and cost so little as com- pared w4th the total cost of the party. Cigars are a part of any real entertaining — and w^atch the cash box rejoice. ' ' m 10 52nd year THE TOBACCO WORLD October 1, 1932 ENGINEERS EXPERIENCE EVIDENCE OF BUSINESS RECOVERY USINESS has, at last, taken the turn for the better. Of all the many indications, the one most acceptable to those still idle is the re- employment of some of their number. The Philadelphia Technical Service Committee has found a noticeable increase this past week in the requests for engineering personnel and in the number of men re- turned to work through its efforts. A total of 150 men have been definitely placed to date. Of this num- ber forty are now on made work w^ith municipal and civic organizations, financed from a fund subscril)ed by individual engineers and engineering societies of the council. A movement is now on foot to raise $60,000, and it is planned to extend this type of service until 200 engineers with dependent families can be cared for. The State Employment Commission of Pennsylvania, the Engineers' Club of Philadelphia, which sponsored this committee, and the local sections of twelve national engineering societies listed below comprise this council. American Society of Civil Engineers, American Society of Mechanical Engineers, American Society of Heating and Ventilating En- gineers, American Society of Municipal Engineers, American Society of Steel Treating, American Institute of Electrical Engineers, American Institute of Chemists, American Chemical Society, American Welding Society, Illuminating Engineering Society, Society of American Military Engineers, Association of Iron and Steel Electrical Engineers. The combined membership of this local group, in- cluding the Engineers' Club, is 5000 members. The council has entrusted the management of its activities to six meml>ers who form the committee. Employment activities are carried on by a non-salaried staff of five volunteers from among the unemployed technical men, and thus this service is offered without charge to any- one. To date over 1100 applicants have registered for employment. Inquiries are solicited from executives requiring engineering personnel. For additional in- formation address ** Employment," 1317 Spruce Street, Philadelphia, Pa., or telephone Pennypacker 5234. EIGHT MONTHS' WITHDRAWALS FOR IRELAND PRODUCTION HOLDING UP Tobacco factories in Northern Ireland state that, although consumption of manufactured tobacco in that country and in Great Britain shows a slight decrease during the first eight months of 1932 compared with the corresponding period of 1931, their output has been kept on as large a level as last year. The larger of the two Belfast factories reports that its production shows even a slight increase, due chiefly to heavier sales in England of its cheaper brands of cigarettes. The tendency of consumption generally in the British Isles is said to be toward the cheaper grades of cigar- ettes and pipe tobacco. Local manufacturers are ex- pecting the present low prices for American raw to- bacco to show a rising tendency soon, in view of re- ports of short crops in the United States. — (American Vice-Consul Albert W. Scott.) CONSUMPTION First 8 Mos, Cigars: Col, Yr. 1932 Class A — United States . . . 2,304,391,315 Porto Rico 50,614,650 Philippine Islands 111,255,210 Total 2,466,261,175 Class B— United States . . . 36,300,618 Porto Rico 149,000 Philippine Islands 381,712 Total 36,831,330 Class C— " United States . . . 549,604,534 Porto Rico 2,281,550 Philippine Islands 179,522 Total 552,065,606 Class D— United States . . . 34,935,527 Porto Rico 2,700 Philippine Islands 3,126 Total 34,941,353 Class E— United States . . . 2,098,303 Porto Rico Philippine Islands 20,385 Total 2,118,688 Total All Classes— United States . . . 2,927,330,297 Porto Rico 53,047,900 Philippine Islands 111,839,955 Grand Total. 3,092,218,152 Little Cigars: United States . . . 197,950,227 Porto Rico 2,550,000 Philippine Islands Total 200,500,227 Cigarettes : United States ...70,990,477,506 Porto Rico 2,994,700 Philippine Islands 951,697 Total 70,994,423,903 Large Cigarettes: United States . . . 2,394,927 Porto Rico 363,000 Philippine Islands 1,000 Total 2,758,927 Snuff (lbs.) : ' All United States. 24,390,947 Tobacco, manufactured (lbs.): United States . . . 211,638,517 Philippine Islands 454 Total 211,638,971 — Decrease + Increase Quantity — 134,291,175 — 45,805,355 + 8,197,010 — 171,899,520 — 106,275,326 — 1,064,750 — 391,592 — 107,731,668 — 359,500,586 — 989,930 — 141,600 — 360,632,116 — 21,571,420 — 30,900 — 114 — 21,602,434 — 4,233,384 — 1,500 -f 15,404 — 4,219,480 — 625,871,891 — 47,892,435 -f 7,679,108 — 666,085,218 43,685,387 2,950,000 46,635,387 8,^61,756,038 4,035,300 442,093 8,666,233,431 1,456,205 822,000 700 2,278,905 — 2,483,840 — 8,660,218 — 332 — 8,660,550 October 1, 1932 Say You Saw It in The Tobacco World 52nd year 11 Did you say MODEL? PIPE -READY >^sj said MODEL SMOKING TOBACCO COMMON SENSE NEWSPAPER CAMPAIGN FOR *'CREMO" HE American Cigar Company is running a cam- paign in more than 1400 newspapers, announc- ing the price reduction on **Cremo" cigars. Four advertisements of 840 lines each will ap- pear over a one-month period. This marks a return of *^Cremo" copy to news- papers, which have not been used since the early part of 1931. Tie-in announcements of the price reduction will be made on ** Lucky Strike" radio broadcasts. **Cremo" started its advertising come-back in the spring of 1929, when George W. Hill had decided that the time was ripe to promote the popularity of a five- cent cigar and he chose **Cremo," an old brand. With aggressive advertising on a large scale, sales of **Cremo" went from practically nothing to a million a More recently, with a let down in advertising to- gether with price reductions in the cigar field, sales of **Cremo" fell off. Announcement of a change in price from five cents straight to three for ten c^nts already haa reflected itself, it is reported, in a sharply up- turned sales curve. — Printers Ink. McKESSON & ROBBINS EARNINGS Net profit of IMcKesson & Robbins, Incorporated, for the six months ended June 30th amounted to $855,- 600, compared with total interest charges for the period of $816,071. After adjustments, combined profits for the period were $84,075, compared with net of $1,300,380 in the corresponding period last year, which, after preferred dividends, was equal to sixty- one cents a share on the common stock. Net sales for the half year were $53,132,328 and gross profit on sales was $8,458,598. The consolidated balance sheet as of June 30th shows current assets of $53,206,948, compared with current liabilities of $10,- 322,128, a ratio of 5.2 to 1. Outstanding 51/2 per cent, debentures were reduced to $20,848,000 from $21,038,- 000 as of December 31st. OPENING NEW MARKET FOR CANADIAN TOBACCO Montreal Que., September 20. Canada is now invading the tobacco export busi- ness to Sierra Leone, West Africa, and a shipment of twenty-five casks of Canadian tobacco has already gone forward, according to the Canadian National Railways. In 1930 the African colony imported tobacco to the value of $1,500,000, of which 77 per cent, came from the United States and the balance from Great Britain. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCK, Wheeling. W. Va President CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Preaident JULIUS LICHTENSTEIN, New York. N. Y Vice-Preaident WILLIAM BEST. New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL. New York. N. Y Vice-Preaident GEORGE H. HUMMELL. New York, N. Y Vice-President H. H. SHELTON", Washington, D. C Vice-President WILLIAM T. REED, Richmond. Va Vice-President HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEIN, New York. N. Y Treasurer CHARLES DUSHKIND. New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING. Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treasurer WM. S. COLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS. New York City President MILTON" RANCK, Lancaster. Pa First Vice-President D. EMIL KLEIN. New York City Second Vice-President LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN, Newark, N. J President ALBERT FREEMAN, New York, N. Y First Vice-President IRVEN M. MOSS. Trenton, N. J Second Vice-President ABE BROWN, 180 Grumman Ave., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS C. A. JUST, St. Louis, Mo President E. ASBURY DAVIS. Baltimore, Md Vice-President E. W. HARRIS, Indianapolis, Ind Vice-President JONATHAN VIPOND. Scranton, Pa Vice-President GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer MAX JACOBOWITZ, 84 Montgomery St., Jersey City, N. J Secretary PRIMITIVE ROUSES POPULAR INTEREST OPULAR interest in the primitive has recently increased remarkably, and as a result more and more is being heard and written about nature in the raw. It has lK3en the theme in recent months of such popular motion picture presentations as "Bring 'Em Back Alive." Those pictures show nature in the raw, and those who have seen them will doubtless agree wath the cigarette manufacturer who claims that nature in the raw is seldom mild. This point has been incorporated in a series of advertise- ments appearing in newspapers throughout the country asserting that raw tobaccos have no phice in cigarettes and that toasting is needed to give the mildness in a cigarette demanded by smokers. The advertisements are illustrated by paintings by famous artists with many of whom the primitive has been a favorite sub- ject. 12 52nd year THE TOBACCO WORLD October 1, 1932 RETAIL STORE PROBLEMS So many persons are unaiuare of the many aids to business which have been carefully prepared by the United States Government, and so many of those who are aware of these facilities fail to take advantage of them, that we are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) COOPERATIVE RETAIL ADVERTISING (Continued from previous Issue) Manner of Handling Campaign Other cooperative campaiji:ii8 capitalize an event. Football games, which draw hundreds and sometimes thousands of people to a town, have been taken ad- vantage of by merchants who coo|>eratively planned special sales. An out-of-town crowd in a rather small localitv on such an occasion was estimated between 5000 and 8000. Approximately $5 was spent by each visitor, making a sum between $25,000 and $40,000 of out-of-town money si)ent in the town on that day. It is, however, not necessary that the time element be dependent on any particular event for success. Retail campaigns, conducted cooperatively, sometimes cover a week; others are of a month's or even a season's duration. One of the most original cooperative campaigiis makes its appeal by featuring the neighborhood. This kind of a campaign has been so close to community life that it might justify being called a movement. The '* Patronize your neighborhood store" campaign, de- signed to retain in that neighborhood trade which properly belongs to the neighborhood, is a develop- ment of this kind of cooperation. A similar campaign with the ''shop-in-this-neighborhood" aim was spon- sored by a group of millinery retailers who were lo- cated on a street which in earlier days had been given over to saloons. This cooperative campaign so suc- cessfully eliminated from the minds of the public the ideas which had previously been associated with that neighborhood as to convert it into a i>opular millinery shopping center. Another group of retailers catering to a ** limousine" trade, located in what was once a fashionable residential district, joined forces to main- tain a high standard of quality and service. This par- ticular effort not only accomplished its purpose but was sufficiently successful to arouse competition witli the downtown establishments and cause some of them to locate in the new shopping district. A similar in- stance of ''location" cooperation is found in a cam- paign originated ])y retailers located in upstairs shops. While upstairs shops have certain advantages, there are also disadvantages which have always afforded a problem. Eight non-competing upstairs establish- ments demonstrated by cooperative advertising that a campaign might successfully serv<» as Iht "elevator" to bring people up to their shops. Experience has therefore taught that cooperative retail advertising campaigns may center around an educational idea, a purely sales promotion thought, a slogan, or a trade-mark. The time element (either a special event or a period of extended duration) or a location may be capitalized. Mediums for Cooperative Advertising Cooperative retail advertising brings with it indi- vidual characteristics. Old advertising mediums are still used but with significant differences. The news- paper, which is the most familiar advertising medium, is also the most important. For the same reasons that it covers individual advertising needs, it also covers cooperative needs. What is called ** direct mail ad- vertising" is another medium, which takes the form of separate newspaper sheets, pamphlets, booklets, letters and circulars. This form of advertising rep- resents a less simple effort on the part of cooperating merchants, for the reason that there are more points to be agreed upon, such as form and circulation. A third medium is the street car and bus card. Outdoor displays constitute a fourth medium. The two last- named mediums, with their own peculiar advantages which will be discussed later, fit some needs better than others. A consideration of this point should govern their use. The Newspaper In using the newspaper as the advertising medium, there are but few points on which cooperative effort is necessary. This makes the new^spaper the simplest form of advertising from the point of view of coopera- tion and requires, therefore, less experience in organ- ization work or teamwork. Method of presentation. — The method of presen- tation is probably the most important point on which the combining retail advertisers should agree. Fre- quently space is taken in a certain section of a news- paper, part of a page or a whole page being purchased and that space divided in proportion to the needs of the individual merchants, the expense being likewise proportioned. When space is so divided the name of the merchant appears as a part of his advertisement. Again, that space may be used for one purpose which has been decided upon as meeting a general need. In this case the name of the association sponsoring the advertisement may be a part of the advertisement, or it may be signed by each of the merchants supporting it. Questions of this kind are determined upon either l)y the association or by a committee representing the group. The practicability of a group advertisement to which individual merchants' names were attached is illustrated in space taken in an Eastern newspaper by dealers in awnings and tents. Advertisements with ex- pressions to the effect of '*Be comfortable with awn- ings" and "Let us supply your camp tent this sum- mer" constantly stated in the same place for an entire spring season was a sufficiently successful cooperative effort for those dealers sponsoring the advertisement to avoid what appeared to be an approaching slump. In fact, every one of those merchants was kept busy throughout the spring and sunmier. A similar instance occurred through advertising material which read, **It pays to have two straw hats." This idea was spon- (Contmued on Page 14) October 1, 1932 Say You Saw It in The Tobacco World 52nd year 13 CIGARETTES INCREASE IN AUGUST HE following comparative data of tax-paid products indicated by monthly sales of stamps are obtained from the statement of internal revenue collections for the month of August, 1932 and are issued by the Bureau. (Figures for Au- gust, 1932 are subject to revision until published in the annual report) : -August 1931 1932 337,738,560 7,234,580 111,643,830 5,938,089 700,585 334,422,610 4,335,570 57,872,470 4,212,760 299,650 401,143,060 Products Cigars (large) — Class A No. Class B No. Class C No. Class D No. Class E No. Total 463,255,644 ______ Cigars (small) No. 31,931,000 29,865,000 Cigarettes (large) ....No. 394,400 274,850 Cigarettes (small) ....No. 9,520,178,596 9,558,921,906 Snuff, mfd Lbs. 2,806,910 2,801,650 Tobacco, mfd Lbs. 28,750,965 28,501,618 Note: The above statement does not include tax- paid products from Puerto Rico and the Philippine Islands. This information is shown in supplemental statement. Tax Paid Products From Puerto Rico for the Month of August. August 1932 6,761,150 8,000 94,000 Products Cigars (large) — Class A No. Class B No. Class C No. Class D No. Total Cigars (small) No. Cigarettes (large) ....No. Cigarettes (small) ....No. Tax Paid Products From the Philippine Islands for the Month of August. A ugust 1931 12,266,450 84,500 233,150 1,000 12,585,100 6,863,150 500,000 60,000 300,000 500,000 225,000 500,000 1931 1932 11,677,120 93,430 27,478 560 Products Cigars (large) — Class A No. Class B No. Class C No. Class D No. Class E No. Total Cigarettes (small) ....No. Tobacco, mfd Lbs. Note: Quantities of tax-paid products shown in above statements are indicated by stamp sales for the month. 19,282,250 17,483 23,110 500 ._^ 1,300 11,798,588 19,324,643 68,880 108 19,350 27 Internal Revenue Collections for the Month of August. Sources of Revenue 1931 1932 Cigars $1,375,981.28 $1,082,909.84 Cigarettes 28,564,019.36 28,678,802.69 Snuff 505,243.83 504,297.07 Tobacco, chewing and smoking 5,176,530.27 5,130,909.71 Cigarette papers and tubes 161,955.92 104,448.67 Miscellaneous, relating to- bacco 47.00 339.38 MURIEL ''BABIES'' MEET WITH FAVOR Think of it!... 3 genuine MURIELS, with all of M U R I E L' s famous Havana flavor and fra- grance, in a neat cellophane packet for a dime !... No wonder M u R IE L ^ Babies^^ have scored a ten*8trike with the smoker whose pocketbook demands economy but whose taste demands quality . . . Stock up this new cigar success . . . the top-counter sensa- tion of 1932. 3. lO MURIEL