Title: The Tobacco world, v. 54

Place of Publication: Philadelphia, Pa.

Copyright Date: 1934

Master Negative Storage Number: MNS# PSt SNPaAg188.2

Volume 54

1934

X^c^

////?

JANUARY 1, 1934

*

t-

^^U

The importance of attractive and dependable containers, for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

Phi la., Pa.
Hanover, Pa.
Cincinnati, Ohio

Ynrk Pa

AUTOKRAFT BOX CORPORATION ^ J^^;, ,J

Lima Ohio Detroit Mich,

A NalioixWtdc Service Wheeling, W. Va.

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA., PA,

2G455(>

After all
^othing satisfies lihe^
SNs. a good cigar ^

VACfrfV

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box- and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

XwHEN BUYING CIGARS

I Remember fhit Regjrdlesi of Pnc«

I THE BEST CIGARS

I ARC TAOLO) IN

\ WOODEN BOXES

• • * . • . • •

• • ■• • .• . *
•-• • • •• . .

•r

»■ -

OS

DC
<

THE TOBACCO WORLD

Vol. 54

JANUARY 1. 1933

No. 1

The TOn.U'i'O W'OKI.n has sit/ned the I*rc.udcut's aijrecmcnt and
is opcratbuj wider XRA Code, (jkuUy and -icludelicartedly cD-ofHToting to
the fullest extent In the . idiuinistration's effort to [promote industrial re-
covery.

y«,ITH TIIK ADVF.XT of tlu- New Year, Imsiiioss
\iM iroiiorally, and the ci^ar and lobacco industry
in particular, is lK\i»innini;- to lift its chin and
tlirow out its chest, coiilidont that the vear 1934
is g()in,<» to be a decided improvement over the past
several years. All the important codes aiYectiufj: the
tobacco inchistry have had public hearini»s in Washing-
ton and steps toward their adoption are now pro,i»:ress-
ins: satisfactoril.' with everv evidence of soon reaching:
a salisractory conclusion, which will ]>e of great bcmeiit
to the entire industry.

Those of us who have not had actual ])ersonal ex-
l)erience with the i)reparation and presentation of a
(^ode of Fair ('om])etition for an industry are ])rone to
criticise those who have l)een dele.u:ated to do this im-
portant work, hut if we could all sit in at the many
conferences between the wnnnittees and the numerous
departments of the National Kecovery Administration
in Washiuiiton, and listen to the manv dilferent sides
of the ])roblem to ])e met, all of which nnist be taken
care of — cannot be entiielv ii;nored — and verv often
nmst be settled by a com])romise of some sort — we
should beuln to realize the stup(»ndousness of the task
acc(*mplisli('d.

riMX(J the latter part of 1933 much has been
accomplished in the way of re-employment of
those who have been without a job for many
months, and in many cases for years, and with
the extension of the "Blue Ka^le" agreement for an-
other foui' months we are assured that there is to be no
let -down in the elTort foi- Ix'tter waives and better living
conditions for all.

The financial situation is improving steadily and
is in a much better condition than a year ago (although
most of us didn't realize its extremely low estate at that
time), and with the advent of the Deposit Insurance
Law on January 1st, the small depositor will have every
reason to replace his confidence in the banks of the
country, and with this confidence replaced, nothing can
stop the gradual improvement in business conditions.

Cj3 Ct] Cj]

XD so, we say, look forward to 1934 with every

assurance that it is going to be a better year

t luui 1933. Begin the New Year with your chin

up, for, as our President so aptly puts it: We

are headed in the right direction, and we are on our

way. May this New Year be filled with those things

which make life worth while: IIkalth, Happiness, and

PHOSPERITV !

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter.
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

Musings of a Cigar Store Indian

By Chief "Young-Man-Smoke-Cigars"

ILL ROGERS waited luiiil 1om,o- after he had
reached manV c-i.-ii.' iM'I'ore lie underwent an
exi)erienoe that en me lo most of ns as boys.
He «-ot sick from Jiis lirst smoke. One of the
episodes in the ])iotiire on wliieh he is now working
in Hollywood called for the wisecracking-, lariat-throw-
ing, homes])nn-])hilosoi)hizinu eomedian to draw on a
pipe. After a few moments, the action of the picture
had to be snnnnarily sto])])ed. The news dispatches
did not describe the symptoms, but went on to say that
Will was given a dose of aromatic spirits. Now the
actor is qualified to give ns an impersonation of
Huckleberry Finn, with his omnii)resent corncob. But
he might have saved himself tliat momentary indis-
position if he had only taken a lesson or two from
Mme. Chantal Qnennville, whose oil paintings, embel-
lished by wax, eggs and casein, have created a furore
in Paris, She is an inveterate pipe smoker.

£t3 CJ] [t]

AUL nABRISON touches on some of the in-
teresting sideliuhts connected with the smok-
ing of celebrities. J. P. Morgan, for example,
will not touch anv cii»ar other than his owTi
special blend, made in Havana, Yet he's inclined to
be a little olYended if some equally discriminating
smoker refuses one of the Morgan lirand. George
Arliss .carries cigars which look exactly like the two-
for-a-nickel stogies he smoked in less prosj)erous days.
Yet the present ones are made to order and cost al-
most as much as Mr. ^loruan's. Frank A'anderlip, the
financier, gels cii»ar> at liii cents apiece at any con-
venient store. P>ut William <Jreen, president of the
American Federation of Labor. i)avs sixtv cents each
for his cigars, and pulfs througii a <lozen a day.

Ct3 Ct] [t]

BOFT the onlv Inxnrv in which the late Calvin
Foolidue indulued, continues i*aul, as quoted
in the SoiifJurH Tnhari o Journal, were eighty-
cent cigars. Herl)ert Hoover still orders a
fme blend at ^t^Hn the hundred. Frank Roosevelt smokes
cigarettes. Al Smith smokes eiuar.>>. There still are
tobacco connoisseurs, however, who sigh over vintage
tobacco and love to discuss color and leaf and firmness.
They believe that a cigar is not worth smoking until
it has aged at least ten years, so they store their pane-
telas and perfectos in advance in some of the humidor
vaults maintained by the h'v^ houses such as Park and
Tilford, and Dunhill. Albert Wiggin and Eugene
Myer, tlie bankers; Flarence ^lackay, Adolf Zukor
and Owen Davis are >onie of those who go in for
vintage tobaccos. I)oui;la- Fairl>anks buys his long,
blunt cigars in Xow Yoik for Jt^G.j a hundred. Some
smokers pay up to $9G a hundred. I*ark and Tilford
occasionally make up an 18-inch si'ze for $5 each. These
are mostly for gifts, but a Chicago millionaire ordered
a hundred of them for liis yacht. John Mc('ormack
and Gain Furci like long, specially-made, filtered ciga-
rettes.

Y«a HAT is believed to be Henry AVadsworth Long-
^K^ fellow's pipe, dating back to 182."), was found
when a partition was ripjied from the wall of
the house where the poet lived while a student
at Bowdoin College. The pipe was filled with tobacco.
And Girard, in the Philadelphia Inquirer , reports that
there are in the United States only about 100 business
concerns which have been in the same family for 100
years or more, about half of them being in Pennsyl-
vania, or in the Philadeljihia territory. One of these
remarkable institutions is the Demuth tobacco house
of Lancaster, which was born in 1770 and has never
moved from its original building. Selling tobacco
over the same counter as was done six years before
the Declaration of Independence!

CJ3 Cj] Ct3

EEMS as though that Oklahoman picked out
as good a way as any of judging the trend
of general conditions. His gauge is the rise
and fall in the number of cigars he receives as
Christmas gifts. He pointed out that four years ago
he received thirteen boxes of cigars; three years ago,
three boxes; two years ago, one box, and last year,
two cigars. Up to the time of going to ])ress we have
received no report of this year's grist, but we have
a hunch, judging from our own experience, that it was
somewhere between the three boxes of 1930 and the
thirteen boxes of 11)29. It is a tri])ute to the fair trade
ethics of the tobacco business that the only establish-
ment in the trade from which the Blue Eagle was with-
drawn turns out to be a restaurant, instead of a to-
bacco store, or at any rate, a restaurant department
of a retail tobacconist. A waitress in the AVhite Cigar
Stores, Norfolk, Va., reported that she worked G8M2
hours a week and received $7. On the second notice
the employer appeared before the local board and
stated he would close the restaurant and discharge the
employees. His obligations and privileges were ex-
plained. He did close the cafeteria and discharge the
employees. The local board reported the store as a
**consistent offender; has done nothing reasonable
since the beginning of the NRA movement."

Ct) Ct3 Ct3

KLAHO^fA crops up again in the tobacco
news with a storv that eightv-five-year-old
Aunt Jane Headrick has just completed her
third quilt made from tobacco sacks. She rips
the sacks apart, dyes them various colors and assem-
bles them in a variety of geometric designs. Tn mak-
ing the three quilts she has used two thousand sacks.
* 'Don't Smoke Old Rags! One might as well smoke
old rags as try to get satisfaction or enjoyment from
dry tobacco. Our tobaccos are always fresh. They're
kept in a special Humidor." That is the copy on a
bulletin mailed out by a Canq)bellton, New Brunswick,
tobacconist.

The Tobacco World

Bigger and Better Business

IGGER Bayuk Business in 1934 was the keynote
of the annual two-dav convention held at the
Ninth and Columbia Avenue head(|uarters and
attended by the company's territorial and
branch managers from all over the country. The con-
vention came to an end with a festive bamiuet at the
Hotel Adelphia, on December 28th.

H. S. Rothschild, i)resident of Bayuk Cigars, Inc.,
made the address of welcome and outlined the plans
and i)olicies for the coming year.

A. Jos. Newman, vice-president in charge of sales,
presich'd at the meetings of the convention and inspired
the men with his enthusiasm to continue the "message-
to-(iarcia" spirit which has been largely responsible
for the sensational rise of Phillies and other Bayuk
protlucts during the year just closed.

Harry Wornian, vice-i)resident in charge of manu-
facturing, gave an informative descrii)tion of the vari-
ous phases of the production methods in the world's
largest cigar plant.

Neal D. Ivey, advertising counsellor, impressed the
salesmen with his talk on the dovetailing of the com-
pany's advertising x)rograni with its sales activities.

Bayuk Introduces New '* Prince Hamlet

> >

Marc H. Mack Passes

ARC H. ^lACK, an original member of the firm
of Hirschhorn, Mack & Co., manufacturers of
Tom Moore, Little Tom and Henry George
citrars, died on December 21 of pneumonia at
his home, 111 East Fifty-sixth Street, New York City.
He was eighty-seven years old. AVhile he retired from
active business in 1910, he retained an interest in the
firm and in its successor, the General Cigar Co., formed
in lini, until the day of his death.

He maintained an active interest in various chari-
ties. He estal)lished Big Tree Farm for cardiac chil-
dren in memory of his wife and turned it over to Mon-
tefiore Hospital. He was a former director of the
Hebrew Infants' Asylum. Surviving are a daughter,
Mrs. Mildred Mack" Mayer, and two sisters, Mrs.
Laura Newburi^di and Mrs. Hannah Frank.

Passaic Plant for Santaella

A. Santaella & Co., manufacturers of thi* well-
known Optimo cigar, are prei)aring to go into ])roduc-
tion in the new ])lant recently leased in Passaic, N. J.
Operations in this new N«n-thern plant will ])e in addi-
tion to the c«»mpany's manufaclnrinu; activities in
Tanq)a, Florida, where it lias for many years been one
<.f the most prominent factors in the industry.

It is expected tliat along with the Optimo brand,
the other Santaella pnxhicts will also be turned out in
the Passaic factory. These inclmle As You Like It,
which is another n"iend)er of the quality price group,
and Alluro, which it is planned to develop in the five-
cent sha<le- wrapped held.

Tampa ciuar manufacturers and workers have
reached an aicreement for a three-year abstinence from
strikes and lockouts, all controversies to be settled by
arbitration, and a wage scale to be agreed upon when
the tobacco code becomes oi)erative.

January r, 1934

Conventional <lesit>n in cigar boxes was discarded
completely by Bayuk Cigars, Inc., in creating a package
for its new Prince Handet Cigar. The color scheme of
the box is black, gold, to1)aeco-brown and ivory. The
effect is one of extreme richness and dignity — the pur-
pose being to reflect the high ([uality of the cigar.

The box carries a certiiicate — signed l)y tlie Regis-
trar of Tobaccos, Havana, Cuba — worded as follows:
'*I have personally examined the Havana Tobacco used
in Prince Hamlet Cigars and hereby certify that this
tobacco is of the highest ipiality — selected from the
finest grades grown in Cuba."

Prince Hamlet Cigars are available in five popular
sliajies — priced at P* cents, two for 25 cents, 15 cents
strainht and three for 5U cents.

Brown & Williamson Union Factories

The Brown iV' Williamson Tobacco Corporation has
signed an agreement with the Tobacco Workers Inter-
mitional Union whereby their factories located at
L(Uiisville, Kentucky: P'etersbnrg, Virginia and Win-
ston-Salem, North Carolina, effective as of this date,
become union factories.

The union laV»el will a])pear on their different prod-
ucts as soon as )»ro]>er machinery can be installed to
place tliis la))el <»n the ])acka,i:e.

The P.rown iVl' WilliMm^on Toliacco Corporation has
uiven supp(»ri l<» all of the reunlalions under the
N. P. A. and, in cont'<.rininu' t(» the lab<»r code, they
decided thev would not «»nly nied in fidl measure the
provisions of that code, but are ulad to go a step fur-
tlier and welcome the oiuanization ot' their enq)loyees
in the ranks of organized labor.

The Pennstate Ciuar Corp., manufacturers of the
Hilo and Fiuvoy brands, are making iireparations to
launch their new live-ciMit brand, Stanwyck, early in
Januarv. The Hilo and Lnvoy brands were immedi-
ately accepted by the trade u])on their introduction
last year and the new Stanwyck l)rand has all the ap-
l>ear*ances of being accorded tiie <ame reception by re-
tailers and consumers.

^.i

V

News From Congress

iWiliT/

m\j{. mm

•(•^OliBtk.

^

Jlili!

'T^ial

^.MJAi^rmm^Jki'

••*w< la.

liFIXITE signs of business revival liave made
tlieii- appearance tlironsiliout the world, but
excessive trade restrictions, disorsranized

>,nAir.ni TT' '''■'" '>'"'l^'"^- fliKtuatinj. exchange
and tiade declines are retarding the expansion of busi-
ness, It IS declared l)y Secretary of Commerce Daniel
C. Koper in his annual report. As a means of readi-
ng an ultimate solution of the worl.Ps economic prob-
lem, the Secretary urges international consultations
and concerted action to eliminate llie policies liaiime •-
ing the revival of business. ".mipci

"In the United States, signs of resistance to fur-
ther contraction appeared in the lirsl half of the fw,-al

'rs\leCite!;- stemmed' ""'"""■ "'" '''" "'' ''^•"""•"'

„f tl!!^'?"^'-''"''*' ''■'■" ■"'■''"">■ ■■^"•»''>?-'thened as a result
of the decisive governmental action, business activ v
quickened, and by the end of iho fiscal vear substa.--
tial progress had been made. Xeverthbless the e
scent fron, the li)L'9 level was so slia r and so loit
maintained that despite the constructive wo rk of tl e
President and Congress and the wholehearted su, p 't
of the people, conditions at the close of the fiscal 'e'r
remained tar from satisfuctorv. The eco, oiiic stru •
Jure continued to be badly in i.eed of supl'i-rand re!

* CJ] Ct3

BROAD program of legislation, dealing not
only with recovery and relief activities but
also with more iternianciit subjects is ,.x
■A . n Pec'ed to be suggested to Congress bv Pr.'s
ident Roosevelt in his annual message at the openin-
ot the .session. AMth the monetary situation of out"
standing importance, a consideralile ,,ortioii of the
President .s message will be devoted to the ..uesiions
of gold and silver, agricultural Mdjustment. n'-ci,,,,)."
ment and the move tor trade expansion. Hankiii.' and
currency also will be di.scussed. in the light of , | ,7 • ! '

S'sireet. ■ *^'""*' ''"""'""^'^ ^^''i''"' investigated

The failure of the Administration 's gold-buviii"
program o raise prices in (his count, v ami her
tinued agitation for inflation are ,.MH.;.|e,l to I e e,
b> the Pre,..dent with a program which will avoid I «
dangers ot Ihc alter an.I give assuiaii,.e that llie le '
ures already adoiMed will not react unfavorablv on
he country Failure of the banks to n lake ere d
loans to industry for recovery purposes ma 1 . met

Federal
Departments

iiwMi'i ""niiyr""^"^"" ^"''^^" ^^^^^«" su'iwNG

by a demand thai they oillier "loosen up" or face the

.■ompelitioii ot Federal loans, either through some ex-

s ng aoeiK or by ,],e establishment ot' a " upor-

C!3 Ct) O

H-\l)Jl-ST-MFXT of indiislrial codes in which
labor iirovisions and general regulations in-
crease prices unduly will be demanded shortly
. . Iiy Oeneral Hugh S. Johnson, Recovery Ail-
m.n.strator. J- xph.ining that codes originally adopted
nere developed without any past experience to dr-iw
..l.'.n, ( eiieial Johnson beli.'.y.is that the Ih.^e hat co iie
..check up on results and make rea.l.juslments where

:u.r,S;';',!:r'hiS. '''"'' ''' '^'•'^^'"™'^ "^-^ -" '-

unfi/'Iffel','l?''T''"'!-' '"• ''"'""."^^ "'"''^ ^•■■" ^ >""<'<'

d t . ., ' ";"'"'-^ "" l"-"-*^ '•■'iH'.^i's now sehed-

iiled to be hehl January !». These hearin-s were

ordered lollowing receipt of complaints that i^ some

.stances prices ha.l been increaMi to greater extent

iiir "::;.£' '•• "^ '•"'^""""'" <^-' of producibil

In initialing his program for readjustments C.on-
eral Johnson will order a check of al codes alVemh
... operation One or two of the codes he declare
will have to be sc.apj.ed coniplelelv and more or [ess
dras,.. changes will be required in a number of other
vhich have been in operalion long enou'di f.,r the /;ov
<'n....ei,t to delermine that they have ha a exa..."er"
ated efTecl upon jirices. .-Aa^.^cr-

^ ^ tti

IfAVK possibilities ijiat polities may be in-
.M'cled into the adniinisi ration of "recovery
codes are soei, by industrial hNulers in intinm-
t O..S t.o,M lecovery a.lminisf .ation oflicials
s ' ';n.lia I.ons of nominees for member-

s p on co-le ai.lli.,nli,.s .,r subor.linale coniniiltees
; ;;:'-;l^ ;•, I l.e sUulied aIo„g with their busi e.!s

ana pci.sdnal .staiidiuLr-.

n,o.;;.S::s:'i:r;j-;:;::;;;,:r:;':>,/-.s:;-iix^^

Two codes alone-for Ihe oil and niolion picture
ndisliies--hav,. necessitated nearly ]0().) a o it

IstraUon. ""' ''''"'" "" "'■ "'^' "-'''"cry for'Sil'n:

The Tobacco World

Cigars and Cigarettes Decline in November

UK followin.i": comparative data of tax-paid
l)ro(liK'ts, indicated by the monthly sales of
stamps, are issued l)y the Bureau/ (Figures
for Xovember, 1!):^:^,* ai-e sul),iect to revision

19S2

uuiil published in the annual r^imrt) :

— Novewhcr —
Prodttcfs 1933

Cigars (larc:e) :

Class A No. 334,280,095

Class B No.

Class C No.

Class D No.

Class E No.

4,15:},37:^

Cn,487,2r)0
6,188,011
l,238,rj94

320,027,450

4,017,fJ:?0

87,190,924

(>,849,2:^()

1,088,188

Total 415,;]47,323 419,173,428

Cigars (small) No. 10,587,200

Cigarettes (large) ..No. 371,150

Cigaretes (small) ... No. 6,835,038,093

SnufT, mfd Lbs. 2,612,169

Tobacco, mfd Lbs. 22,794,824

21,550,413

304,992

7,613,941,573

2,850,78!)

25,148,846

Tax-paid products from Puerto Rico (not included
in above statement) were as follows:

— November —
Products

Cigars (large) :

Class A

Class B

v^iass L/

.... No.
.... No.
. . . . i\ o.
Class D No.

1933

5,330,050
426,200
137,400
500

198$

6,874,860

10,500

240,000

Total .

5,894,150

7,125,360

Cigars (small) No. 300,000 500,000

Cigarettes (large) ...No. 70,000 60,000

Cigarettes (small) ..No. 200,000 168,0(M)

Tax-i)aid products from tlie Pliilippines (not in-
cluded in above statement) were as foUows :

— November —

Products
Cigars (large):

Class A No.

Class ]^ No.

Class C No.

Class I) No.

Class K No.

Total .

1033

23,240,020

17,707

47,890

700

130

1932

13,122,685

72,997

48,490

750

886

• •■••«•

23,306,447 13,245,808

Cigarettes (large)
Cigaretes (small)
Tobacco, mfd. . . .

. No.
. No.
Lbs.

137,720

8,950

143,940

22

Internal Revenue Collections for November

Sources of Revenue. 1933 1932

^'\mr^ $1,170,125.29 .$1,218,332.0S

Cigarettes 20,508,263.32 22,844,746 92

|nuff 470,190.48 5L3,142.09

Tobacco, c h e w i ng and

^. ^"»oki"l? 4,1 03,1 f)6.84 4,527,025.35

Cigarette papers a n d

,,. tiijH^^ 61,648.37 82,985.69

MisceJIaneous, relating

to tobacco 185.60 402.90

January i, igj^

Total Withdrawals for Previous Novembers

1920
1921
1922
1923
1924
1925

668,060,015
615,251,258
679,300,302
650,687,413
601,412,539
598,478,129

1926
1927
1928
1929
1930
1931

654,975,106
654,164,577
630,530,692
622,938,344
528,127,899
477,458,157

Processing Tax Returns

Detad of collections from processing and related
taxes i)rocIaimed by the Secretarv of Agriculture
under authority of the Agricultural Adjustment Act
Kr" '~ 1<>— 73d Congress), approved May 12,

Total from
July 1, 1933

(Fiscal
Year 1934)

Month of
Commodity November, 1933

Tobacco, (tax eflPective Oc-
tober 1, 1933)

Processing taxes ....
Im|)ort compensating

taxes

Floor tax, other than

retail dealers

Floor lax, retail deal-
ers

$200,970.53

15,756.06

961,105,88

103,469.07

$200,970.53

29,342.60

1,647,407.33

106,037.72

Total tobacco . . . .$1,281,301.54 $1,983,758.18
Fhie-Cured Tobacco Return to Be Two and a Half

Times That of 1932

LrK-C['KKI) tobacco growers will receive for

their 1933 crop now being marketed more than

two and a half times what the 1932 crop

brought and about twice what thev received

ficun the 1931 crop, according to J. B. Hutson, chief

ot the tobacco section of the Agricultural Adjustment

Achiiinistration.

The 1933 crop is expected to bring growers in
N(Hth Carolina, South Carolina, Viririnia^ Georgia, and
Florida, about 110 million dollars. This is exclusive of
approximately 21 million dollars in benefit and rental
paymcnt.s to be made by the Agricultural Adjustment
Administration to growers who sign agreements to re-
duce ])roduction in 1934. In 1932 the flue-cured crop
sohl for 43 million dollars and in 1931 it brought 56
million.

Tlie price improvement this year, Mr. Hutson
stated, was brought al)out in s])ite of the fact that the
crop exceeding 700 million |)ounds is almost twice the
size of tli(» 1932 crop. It was made possible through
the sii|)port that growers gave the Administration's
prgram to bring 1934 i)roduction more in line with re-
quirements. As a result of growers pledging them-
selves to sign formal reduction aureements during the
mark«'t holiday between September 1st to September
25tli, a marketing agreement with tlie big domestic
buyers of flue-cured tobacco was made possible. This
marketing agnM-mcut, backed by the ])rospoct of re-
duced production in 1934, liftc(i the general level of
fhie-cnred tol)acco prices in spit<* of a crop which will
add about 100 million pounds to the world's flue-cured
tobacco surj)lus.

(Continued on page 15)

Eleven Months Withdrawals for Consumption

Cigars :
Class A —
United States
Puerto Eico ,
Philippine Is.

First 11 Mas.
Cal. Yr. 1933

3,468,781,245 +

52,265,545 —

170,369,690 +

— Decrease
-{-Increase
Quantity

168,176,175

13,887,965

7,386,230

Total All Classes-
United States . .
Puerto Rico . . .
Philippine Is. . .

4,068,062,093
55,993,575

170,782,581

+

Grand Total . . 4,294,838,249

120,692,975
13,146,435

6,827,877

127,011,533

Total 3,691,416,480 + 161,674,440

Class B—
United States
Puerto Rico ,
Philippine Is.

26,616,289

3,029,250

184,107

— 21,511,415
+ 2,853,250

— 466,162

Little Cigars :

United States . .
Puerto Rico . . .
Philippine Is. . .

196,187,453
3,274,000

69,967,841
976,000

Total 199,461,453 — 70,943,841

Total 29,829,646 — 19,124,327

Cigarettes :

Class C—
United States
Puerto Rico
Philippine Is.

525,880,504
697,780
223,956

257,584,466

2,110,020

55,356

United States
Puerto Rico ,
Philippine Is.

103,963,817,426 + 7,697,045,727
3,275,600 — 507,100

1,362,230 + 107,103

Total 103,968,455,256 + 7,696,645,730

Total 526,802,240 — 259,749,842

Class D—
United States
Puerto Rico
Philippine Is.

41,959,541
1,000
2,076

10,278,489
1,700
1,800

Large Cigarettes:

United States .
Puerto Rico . .
Philippine Is. .

Total

2,567,485 —

775,000 4-

7,937 —

729,567

262,000

2,013

3,350,422 —

469,580

Total 41,962,617 — 10,281,989

Class E—
United States
Puerto Rico
Philippine Is.

Snuff (lbs.)—
All U. S..

33,932,511 +

681,198

4,824,514 +

» • • • ■ •

2,752 —

Total

4,827,266 +

505,220

35,035

470,185

Tobacco Mfd. (lbs.)—

United States . .
Philippine Is. . .

285,610,041
169

5,707,918
348

Total 285,610,210 — 5,708,266

Cigar Container Code Authority Elected

T the meeting of the Cigar Container Indus-
try held under the auspices of the Xational
Cigar Box Manufacturers Association at the
Benjamin Franklin Hotel, Philadelphia, on
Saturday, December 16th, for the purpose of electing
the Cigar Container Code Authority the following
were selected: ' °

Rodgers Neely, president, A. H. Balliet Corp.,
Allentown Pa chairman; Harry W. Buckley, presi-
dent, Autokraf t Box Corp., Lima, O. ; Charles Fisher,
J. Henry Fisher Sons, Baltimore, Md. ; David Gross

^^fu v\^'^Y5^^ C^mP'-^ny, Red Lion, Pa.; E. B.
bhultz, ^atlonal R^exjovery Administration, Washing-
ton D C. ; George H. Snyder, George H. Snyder Inc
Philadelphia. Pa. ; Harry F. Ungar, Alexandefunga^^^
Inc., New Brunswick, N. J. ^"gar,

E. B. Shultz, member of the Code Authority rep-
S^'^ ^^? Y'"^^, ^^^ovevy Administratic^, ^.

S I'f t t:ti^£^;^^^^'^' - ^^^ -^--

Frank H. Warner, of Philadelphia, Pa., was re-

iwf if TT^^ and Hobart B. Hankins, of Me?-
chantvdle, N. J, was elected executive secretary

The executive offices of the Code Authority are
located at 236 Chestnut Street, Philadelphia, Pa.,
where information concerning the Cigar Container
Code may be obtained.

The Code Practice Committee, which set up the
Code was complimented for the efficient manner in
which it had completed its work.
v^hdlit interesting to note the progressive manner in
which the Code Practice Committee brought its activi-
ties to a conclusion. Work on the Code, under the
direction of ^fr. Neely, the Chairman of the Code Prac
tice Committee, was begun in early June. The Code
was submitted for analysis and criticism in late July.
The Code was filed for a hearing on August 11th and
received Code No. 303. It came to a hearing on Octo-
ber 19th and was registered as hearing No. 188. It
was signed by President Roosevelt on November 27th
as approved Code No. 135, and became operative De-
cember 11th.

Its Code Authority was elected and organized on
December 16th and is among the first ninety Code
Authorities organized to date.

The Tobacco World

Stop Price-Cutting!

By WILLIAM A. HOLLINGSWORTH
President, Retail Tobacco Dealers of America, Inc.

OR THE PAST few years the retail tobacco-
nists of the whole United States have been sub-
jected to the meanest form of predatory com-
petition. They have been compelled to stock
and turn over large quantities of tobacco products at
an absolute loss. The Retail Tobacco Dealers' and the
Tobacco Distributors' Codes of fair competition were
the first codes of the tobacco industry.

The Retailers' Code was drafted at the Retail To-
bacco Dealers' convention, held in New York City on
the 17th and 18th of last June. It was drafted by rep-
resentatives of every type, class and kind of retail to-
bacconists in the United States from every part of the
United States.

Interdivisional differences and requirements of the
retail tobacco business were all reconciled in this Code
— large chain interest, small individual storekeepers,
price-cutters, regulars, and the i)roponents of higher
prices— all subscribed to the Code, and it has stood
every test that time and delay could develop. In draft-
ing their Code, the retailers were constantly mindful of
the consumer's welfare, also that of the farmer, manu-
facturer, laborer, wholesaler.

In this Code the retail tobacco dealers are seeking
protection against the price-cutter who so ruthlessly
attacks tlieir business as to remove almost every chance
of earning a living from it. The greater part of this
predatory competition comes from businesses alien to
the retail tobacco business.

Retail tobacco dealers amongst themselves can
agree and with little difficulty maintain fair trade prac-
tices. Their principal complaint is the invasion of the
ruthless price-cutting methods of retailers in alien
fields of merchandise. These cast their net over the
entire retail tobacco business. The chain grocery
store, department stores, clothing stores and super-
markets are the offenders who make loss-leaders of
cigars and tobacco products — seldom the retail tobac-
conists. The retail tobacconists must have protection
from this external predatory competition, or they will
be squeezed entirely out of the tobacco business.

Wages and Hours

The retail tobacco dealers ask parity of hours with
tlie druggists who have been allowed, by Code, to em-
ploy their labor fifty-six hours per week, for stores
open seven days a week, for not less than eighty-four
hours per week.

I. Drug stores are the principal competition of the
tobacconists in the sale of tobacco products. According
to the retail distribution census of 1930, it is seen that
30 per cent, of all tobacco products sold in the United
States is sold in drug stores as against 42 per cent, sold
in tobacco stores.

II. To restrict the tobacco store employees to
forty-eight hours as against the drug stores fifty-six
hours for seven-day stores will discriminate against
the tobacco stores to the extent of 16 2/3% on labor
charges.

III. It will also be seen this discrimination of labor
costs of distribution will cause a greater shifting of
tobacco sales to drug stores, as many tobacco stores,

January i, ig$4

finding it impossible to meet the differential of labor
costs, will confine their store hours to six days a week
and a considerable additional volume of tobacco sales
will find its way into drug stores.

IV. If tobacco stores are influenced to restrict
store hours to sixty-six hours instead of encouraged to
remain open eighty-four hours, the minimum loss of
re-emi)loyment will be ten hours a week for each store
engaging help.

V. There is nothing to be gained by differentiating
in labor hours between tobacco shops and other stores
competing for tobacco business, and only operates to
favor stores, restaurants, or hotels which are permitted
longer hours for their employees, and thus works an
unavoidable hardship upon the retail tobacconists who
employ help.

The proponents of this Code have given consider-
ation to every phase of retailing tobacco products, in-
cluding working hours of the employees. The Code is
designed to comply with NRA, and to promote fairness
in competition and to create advantage for no one. We
feel confident the drug stores concede this, and will
endorse the retail tobacconists' plea for parity of
hours. The drug stores and the tobacco stores are
entitled to the hours schedule, as set up in the Code, as
it has been the custom for years to keep these stores
open longer hours per week than any other class of
retail outlet, excepting possibly restaurants.

To encourage the retail tobacconists who elect to
do so to operate under Labor Schedule D, allowing to-
bacco stores which remain open seven days a week, for
longer than eighty-four hours per week, to employ their
help fifty-six hours, will develop re-employment. Not
to do so would curtail possible re-employment in the
retail tobacco business and impose an unfair hardship
upon the retail tobacconist.

Merchandising Provisions

The consumer's interest is protected by the Retail
Tobacconist Code. Consider, the retailers have agreed
in their Code to pay as much as 4 cents for a cigar,
which will be advertised or listed to retail at 5 cents
each; this is what is meant by a mark-up of 25 per cent,
or a gross margin of 20 per cent, on a sale. Could anv
one consider this plan of merchandising as profiteering
or as having the possibilities of developing monopoly
or designed to hold the consumer up for an exorbitant
profit! As an additional guarantee to the consumer
against possible profiteering or overcharging, the re-
tailers have fixed as a top a maximum margin of 28 per
cent.

Add to the wholesale cost of 4 cents per cigar,
which retails at 5 cents, any selling expense in the way
of pay to clerks, rent, light, heat, matches, etc., etc., and
then calculate, if you can, the retailers' net profit. It is
infinitesimal.

In accepting this minimum of 20 per cent, gross
profit, the closest margin any retailers have ever agreed
to, or the highest price ever paid for a 5-cent cigar, the
retailers protect the consumers against either paying 6
cents for the present 5-cent cigar, or cheapening the
quality of the present good 5-cent cigar.

To clieapcn the quality or raise tlic price of the
cigar will affect tlie fanner; either change will certainly
curtail consumer consumption of cigars, thus lessening
the market for the farmer's tobacco. Cheapening the
quality curtails consumer desire, also calls for lower

111

material costs, and an odd ])rice of (> cents woukl surely
create sales resistance and reduce consumer demand.

That a 6-cent i)rice for the present o-eent eigar
would cause a setback in consumption is delinitely es-
tablished in every retailer's mind. Kelailei's who have
applied themselves to the retail lobaceo business for
years know this. There is no argument which could
upset the retailers' oi)inion on this jKunt. To raise the
present o-cent cigar to () cents would ruin the existing
market for real 5-cenl cigars, and the cigar industry
would sulfer a serious decline in volume.

Eiiihtv-iive ])er cent, of the eii;ar consumption to-
dav is in Class A or o-cent ciuars. This is whv such
high (pudity exists in this class of eiuar. Each manu-
facturer is vvinu with the other to rtroduee the best
5-cent cigar obtainable. It's getting so the country no
longer needs "A good o-cent cigar." Kather, the 5-
cent ciiiar now needs a uood count rv. This is no i)un;
it is the absolute truth. This line o-cent cigar and the
consumer will both profit by maintaining an honest re-
tail market.

The retailers, as you can see, have given consider-
ation to the welfare of the consumers' interest, and the
farmers likewise. This isn't all: labor and the numu-
facturers also were considered. The jnevious whole-
sale price for gootl 5-cent cigars was .I.J tents, or top
price, 3. J cents. The accepted increase in tlie wholesale
price of cigars from -o ])ei" cent, to 14 i)ei' cent, allows
the manufacturers a latitude to take up some additional
labor and jirocessing charges.

These })rices, of course, are not the nuinufacturcrs'
prices, but the wholesalers' prices to tlie retailers, and
are intended only to show the sacrifices the retailers are
making to secure the consumer, the farmer, labor and
the manufacturer the utmost iii service and quality for
the least amount of nionev.

•

Matches are mentioned in the selling expense
charges. The giving of matches with tol)acco jnirchases
is a custom which cannot be abolished without antag-
onism on the \n\\{ of the consumer. The lowest cost of
the cheapest advertising matches totlay is $0 jier 2500
packs, or oiie-iifth of a cent a ]»ackaiie. This price is
for matches carrying an outsid<* advertisement, such
as chewing gum, tooth ])aste, etc. This means these
advertisers pay i)art of tin* matt-h cost in onler that the
retailer may ]>rocure the matches t'oi s^r» a cas(». The
cost without an outside ad is consideral)ly liigher.
There is a heavy tax on matches today.

During the hearing of the Ciiiai- Manufacturers'
Code, the (juestion was asked why the odd ]»rice or
penny piic*' did not affect the sale lA' ciuarettes. A
pro])er answer to this (piestion would have ])een that
the odd i)enny price did delinitely alTect tlie sale of tiie
cigarette.

First, consider that the present odd penny i>ackage
jjrices of pojjulai' brand cigarettes, often referred to as
the "Biu 4," w<'re for ye.-»r^ after the war eitlier adver-
tised at IT) cents or considered as l.'j-ccnt sellei-s. Pricf-
cutting l)ecame the vogue, and the retail j)rice diopjHMl
to 14 cents, the consumer looke<I upon tlie ])eniiy as a
saving. This certainly u-ouhJ tifff develoj) sales resist-
ance; tlie retail price dro)»ped still further to 13 cents,
two frir 25 cents. Again the consumer looked upon the
change due to tlie cut price as a saving.

JO

Then, quite by accident rather than ])y design, in
1928 the 10-cent ci<>arette reallv came into the field. It
was ])ut on the market to liquidate a frozen asset. A
large ([uantity of tobacco, representing an inventory of
some two millions of dollars, could not be moved in the
then ordinary tobacco market, so it was decided to i)ut
it into ciuarettes to sell at 10 cents a ])ackage of twenty.
The idea (piickly caught on and j)roved a winner. The
inventory was rKjuidated in short order. Other cheap
tobaccos were obtainal)le, the idea began to grow, and
before the "Big 4" realized what had hai)])ened, the
10-cent cigarette had aciiuired ai)])roximately 2G per
cent, of the cigarette consumption of this country, and
the manufacturers making them had gained so signifi-
cant a ]»osition in the ciuaiette field thev were recoij-
nized as the "Little 4." Panic reigned.

The "Little 4" could make a scant ])rofit as they
had little overhead and no advertising; their product
sold solely on price. How to beat this competition be-
came the conqilete concern of the "l^ig 4."

The best way to meet the competition was to in-
crease tlie jienny saving to the consumer, give him 3
cents to 4 cents change from his normal 15-cent ])ur-
chase and then, when this was tried, and not successful,
a final reduction in the retail price to 10 cents took
place. At a 10-cent j)rice, of course, the *'Big 4'*
niopp<Ml u]) the competition; because they advertised,
their ])rands continued to be recognized as reduced 15-
cent sellers. The ])rice wai- wountl up with the "Big 4*'
brands, which cost 11 cents a i)ackage wholesale, being
sohl at lOto a ])ackage retail.

Who lost in this l)attle of giants! The Poor Little
UrtaUtr and ])erha}>s the farmer. The retailer's scars
are deep. Ko wonder they live in constant fear of
again l)eing used as a shield of ])rotection against the
serious, ])ernianent, menace, inij)eriling the i)osition of
tlie "Big 4," the lO-cent cigarette.

How the poor little retailer was and may be used
in this manner can best be determined by the examina-
tion of the Federal Trade Commission's report on the
tobacco industry for the year l!)29-l!KiO. This report
was signed by Mr. Charles F. March, chairman of the
Federal Trade Commission. After reading the report,
you may draw your own ccjuclusions. Keference is
made to this report in tlie brief submitted by the pro-
]»onents of this Code. It being a juiblic record, 1 as-
sume it may be considered a part of this record without
s])ecifically reading or offering a copy thereof in evi-
tlence.

The tobacco products most generally used as loss-
leaders are the j>o))ular brands of 15-cent cigarettes —
those commonly known as the '*lVig 4"; the wholesale
price list of these cigarettes to the retailer is 11 cents
a package. The wholesalers or jobbers who distribute
these cigarettes to the retailers are allowed a factory
discount of 10 ]>er cent and 2 per cent. For several
years last juist this has been th<' regular discount of the
manufacturers to the wholesalers or .job])ers.

Because of the cut -throat competiti<»n which exists
in tli<' retail cigarette business, the jobbers have not
been able to keep the lo ))er cent, and 2 ])er cent, al-
lowed them from the retailers' wholesale price. The
jobbers are jnactically compelled to pass their entire
wholesale discount on to the retailers in order that the
retailers' gross loss on cigarette sales may be lessened.
Loss leaders and sjjecial allowances enforce this condi-
tion upon b<»tli the wholesalers an<l the retailers.

In these days of loss-leaders and cut-throat com-
l)etiti(>n, the wholesalers supply the retailers with the

Tk€ Tobacco World

Copyright, 1933. B. J. Bcytiolds Tobacco Company

Steady Smokers turn to Camels

You've often seen his name and picture
in the papers— Jaffee, the city-bred
boy from the U. S. A. who beat the
best Olympic skaters that Europe had
to offer, and laecame the skating cham-
pion of the world! Speaking of speed
skating and cigarettes, Jaffee says:
"It takes healthy nerves and plenty of
wind to be an Olympic skating cham-
pion. 1 find that Camels, because of

their costlier tobaccos, are mild and
likable in taste. And, what is even
more important to a champion athlete,
they never upset the nerves."

Change to Camels and note the
difference in your nerves... in the
pleasure you get from smoking !
Camels are milder. ..have a better
taste. They never upset your nerves.
Begin today!

HOW ARE
YOUR NERVES r

TRY THIS TEST

IT IS MORE FUN TO KNOW

Camels are made from finer, MORE EXPENSIVE
tobaccos than any other popular brand.

camel's

COSTUER
TOBACCOS

Draw a line 20 inches long on the edge
of a newspaper. Stick a straight pin in
the exact center. Place a forefinger on
either side of the pin. Close your eyes
. . . try to measure off quickly the dis-
tances by moving both hands at the
same time. Have a watcher stop you
when you reach the edge. See if both
your fingers have moved the same dis-
tance. Most people try this at least six
times before both hands come out evenly .

Frank CrilUy (Camel smoker), famoua

deep'tea diver, completed the te<t

on hia tecond try.

NEVER GET ON
YOUR NERVES

NEVER TIRE

YOUR TASTE

January i, 19J4

Big 4 brands of cigarettes at 11 cents a package,
less 10 per cent, and 1 per cent, or 9.8 cents tlie package.
On these sales of cigarettes to the retailers the whole-
salers make a gross margin of 1 per cent, on their turn-
over. This price is delivered on credit.

The retailer tobacconists cannot continue to meet
the many types of predatory c()nii)etilion confrontino-
them today. The loss-leader competition is the mean"^
est and most deadly of them all. Stores such as grocery
or department stores which depend upon other lines
of merchandise for protit and wliich, because of their
protection against loss by confidential or special allow^-
ances, use cigarettes and other tobacco products as a
come-on, or bait, to lure trailic to them, have sent thou-
sands of retail tobacconists to tlie wall, and have de-
stroyed the good-will value of manv a once-popular
brand ot tobacco products.

When a retailer commences to slip financially for
lack ot profits on popular-branded merchandise— his
only recourse is substitution— this he does the best he
can, but his opportunities are indeed scant.

The only way a retailer can exist is bv making his
selling expense and a suflicient net i)rofit to live Noth-
ing Irom nothing leaves nothing. Something sub-
tracted Irom nothing leaves a minus (luantity, and a
minus (luantity is less tlian nothim.-. A constant, less
han notlimg income calls for a progressive dissipa-
tion of capital, and eventually insolvency. To save
themselves irom entire loss on their turn-over, the re-
taders tried to gain a compensating mar-in on other
witrfh//T^"'^''i^^"- "»^*«^'t""ately, this\loes not go
r.lh i? ^,^ ;^3^^o,»^"^>n^'^^' as you see, because pracU-
arJicleJI "^ '''''' ^''^'^^"^" ^'^ trade-marked

«hnnn h "^"'""-f ""V^^" ^'^^^' individual tobacco stores
should be c.)nsider(Hl as wages tor their owners, and as

as the a' a P^^'^* ''" "" minimum wage for labor, and
as xne^ A. A. endeavors to protect tlio farmer even
against foreclosure ui)on his farm, so should vou an
prove pro ect. on for the small capital an lvalues of
the individual storekeejjer. >^<*»tb oi

♦ Jn. ^i"^"'.'",!''' ^' protected from the loss-leader prac

:' f *^'^"*- JV^'^" <■'" "">-^t I'niei^.nt storekeepers re
port a., opera ,,,ff expense in excess of 20 pe^r cent

llsiissssis

Ruided bv theCe renorts' .,. V '''''°""'''' ''^'•'' ^««n

properly .„p|fe, „i. offorl.'li'hi. bS^, " * "^

Price-Cutters

any system of price regulation. Their principle motive
IS to further or protect their own selfish interests. In

n- i,- ^'"* ?*"'■<' <^'"""s the practice of under-
selling all competitors on popular branded articles

nfn:!/r!: "'" "r '"^^ ^mrettes as lotv as the cos
of the revenue stamp or six cents a package. No mat-
ter how low he price is slashed, this concern always
sells the oustanding leaders for less. Upon proper
investigation ,t will be found this policf of semnJ
lor less, IS the old loss-leader practice. °

during the hearing given the General Retail Code
last August, Major Benjamin 11. Namm read "nto the
record an advertisement which this concern caused to
be published on August 14, 1930. It read in mrt «^

a cSn •' ^^fA?;^7 ->'l <;ifa-«- - low asVKnt
-nl. , 7, i*' ''"'■" "?]'• *1" smoka.lors for $2.24"

U^ese 0 ,w if ^"'""'"'^ ♦'"»* ^^"« ""'de money on
tlie.se Items. If you were a customer, you boudit this
uerchand.se at less than cost." In commentS upon
this adverti.sement. Major Xamm stated: "ThefcTn
oral underselling claims are never true. They ahvavs
sumer." "''' ""P'-«««io« i" tl-e mind of The con!

This concern also advertises that efficient onera
tion niakes possible its low-cut prices AVI„t\?£) ^
cfliciency is it which permits selH, g aHicie for 6 cJnTs
retail, winch costs 1] cents wholesale, and when tie

1 r y\, ^^ ^"^''" ^fficiencv w II take Ymi xvui

Prico.,r,,,!:?ii,';,,?tS 'rcr'^'- ■"»

Riven as a .savin- on stn. /inrlt li .• ^""^^ P^""^
usuallv matched bv (wo nnli-' '"^^^'-''sed goods is
'.amed or unbTaSed K^"' '" ""'^"'^ P'-'««« «" ^n-

Eve^IlL'knowrthe're' • """^'l"' '" " ■""''"<> fashion.
jramearUst, vet tie police Zil'l"'" !^ ^"^ '^' «hell
or he wouIdVuin eCv l"ir ^^1 '"^ "" ^^^ "^o^e
^tand. J.et the suckerTitf in'"**' ''"•'"'"'''' '"'" ^'^
they lose 90 per cent T ,1 ' 'J?'" •"""*• "^ ^^e time,
by the busine.s^s pirate; wZcnn " F",'™ P™^"'*^"*!
prices, even thougl an ac'^ual loss '*''l"' ''*"'^*'"
then , indue profit^ oroo-^cir oHela^SS

false^pTete'nTsWem^oT"" """f' "^""'t *hat such a
a blight when the fair i?"""'''"'' ^'"^^^ ^'i" "uffcr
Chance to show'l'LS SeTo^ ^S^^^l^Ji

Tht Tobacco World

the goods he sells. Any reasonable person must see
that a fair price on all goods will mean lower prices
to consumers when total purchases are considered.
This is why the notorious price-cutters so conscien-
tiously support the idea of the consumer enjoying loss-
leaders.

Small Manufacturer

The small manufacturer will continue to pass out
of the industry unless the merchandising provisions in
the retail tobacco dealers' code are maintained.

The small manufacturers cannot compete with the
present day cut-throat scheme of merchandising. No
small manufacturers can hope to sell their regular
priced products in competition with the popular-adver-
tised brands of large manufacturers, when these pop-
ular brands are sold as loss-leaders, i. e., the small
manufacturers' 10-cent cigar, will not sell when the
popular two for 25 cents cigars are generally cut to
10 cents.

To illustrate, the small manufacturer may offer
his regular 10-cent cigar to the retailer at as high a
price as 8 cents apiece, and it may be excellent value
for the price, but certainly no one could expect it to
compete with an advertised brand for which the retail
dealer paid 91/2 cents apiece. When the two for 25
cents cigars are reduced to 10 cents, the small manu-
facturers' regular 10-cent cigars are cast aside and
will not sell. As long as this type of competition ex-
ists, no salesmanship or merchandise ingenuity can
equalize the difference. No competing product can
hope to live against the loss leader. This illustration
w;as made of the 10-cent cigar and the two for 25 cents
cigars; it may be applied with equal success to cigars
in any other price range, also to tobacco and ciga-
rettes.

The elimination of indiscriminate price-cutting,
and the loss-leader practice is the only action which
will save the small manufacturer as well as the re-
tailer.

The tobacco industry, suffers more from the loss-
leader practice than any other industry, because to-
bacco products are always sold under brand names,
in packages easy to handle, and no large investment
is required to stock a few of the leaders and offer them
at cut-prices. Popular brands of tobacco products are
today being used by every imaginable kind of retail
outlet to pull patronage. Within the past few wrecks,
a large chain of circulating libraries adopted ciga-
rettes as a loss-leader. The idea is growing daily
and the retail tobacconists' problem is becoming more
tangled each hour. The retail tobacconists' Code must
allow something to correct this deplorable condition,
or the entire tobacco industry will continue a sea upon
which commercial pirates may sail their craft wuth
impunity and with license to slaughter innocent hard-
w^orking little merchants. Even the Blue Eagle will
w^alk the plank and in the place of this noble and hope-
ful standard, the retail tobacconists of this country
will visualize a Skull and Cross Bones upon a Black
Field—will prepare to expect **No Quarter" from the
New Deal, and in their hearts there will be engendered
revolt and opposition against it, and in the heart which
might have been occupied with that Godlv and humane
philosophy of— ** Live and Let Live"— there w^ill be
implanted the spirit of the business freebooter and the
trade racketeer — and all the innocents in the tobacco
business will suffer more than even before N. R. A.
and A. A. A. came into being.

January j, /pj^

Hold Hearing on Agreement for Burley Tobacco

Agreement

UBLIC hearing w^as held December 21st at the
Lafayette Hotel in Washington on a proposed
marketing agreement for buyers of Burley to-
bacco, under which the contracting buvers
would agree to purchase not less than 260,000,000
})ounds of the 1933 Burley crop at an average price of
not less than 12 cents per pound, or else to pay to the
Secretary of Agriculture the difference between an
average price of 12 cents a pound, and any lower price
actually paid.

Under the agreement, any money so received by
the Secretary of Agriculture w^ould be distributed
among growers of Burley tobacco according to any
method which he might adopt.

All leading buyers of Burley tobacco were repre-
sented at the hearing. Xo opposition to the proposed
agreement was expressed. It was pointed out that
the agreement would have to be backed by the full
support of growers to the program for reducing pro-
duction in 1934. J. B. llutson, chief of the tobacco
section of the Agricultural Adjustment Administra-
tion, stated at the hearing that the proposed agree-
ment was worked out in co-operation with representa-
tives of the tobacco industry, and *'is proposed for and
in ])ehalf of the Secretary of Agriculture without preju-
dice or commitment and is subject to modifications."

W. G. Finn, of the Bureau of Agricultural Eco-
nomics, asserted that an agreement would do much "to
bring about greater stability of market prices and lead
to an orderly marketing of the present large crop of
Burlev tobacco." He cited the fact that the Burlev
tobacco markets have been closed because of low prices
and that during this market holiday, growers are sign-
ing contracts to reduce production in 1934. "In view
of this reduction they should be entitled to fair prices
for the 1933 crop," he said, "and a marketing agree-
ment should make possible a more satisfactory level of
prices for this year's crop."

The following companies, buyers of about 90 per
cent, of the Burley tobacco used for domestic manu-
facture in the United States, would be the contracting
buyers under the proposed agreement:

The American Tobacco Co., Axton-Fisher Tobacco
Co., Inc., Brown & Williamson Tobacco Corp., (Conti-
nental Tobacco Corp., Philip Morris Co., Larus & Bro.
Co., Liggett & Myers Tobacco Co., P. Lorillard & Co.,
Inc., K. J. Beynolds Tobacco Co., and the United
States Tobacco Co., Inc.

The following appearances were made at the hear-
ing: W. R. Perkins, representing P. Lorillard & Co.;
W. W. Flowers, vice-president, Liggett & Myers; M. A.
Broswell, counsel, R. J. Reynolds ; Paul M. Hann, vice-
jnesident, American Tobacco Co.; Charles F. Xeiley,
vice-president American Tobacco Co.; (J. II. Hummel,
vice-president, P. Lorillard; J. W. Andrews, vice-presi-
dent, Liggett & Myers: F. L. Fuller, counsel, Liggett &
Myers; J. W. Abbott, auditor. United States Tobacco
Co.; V\. (\ Harrison, P]xport Leaf Tobacco Co.; N. F.
Brant of Paris, Ky.; Wirt IT. Hatcher, Philip Morris
Co., and Continental Tobacco Corp.; Frank C. Taylor,
secretary-treasurer, Burley Tobacco Growers Co-oper-
ative Association, Lexington, Ky. ; James C. Stone,
Lexington, Ky. ; T. M. Anderson, Jr., Kx]iort Leaf To-
bacco Co.; H. M. Robertson, counsel, Brown-William-
son; R. D. Noland, Burley Toliacco Growers of North
Carolina; Senator Alben M. Barkley and Representa-
tive Fred M. Vinson, both of Kentucky.

Heating Plant Beds Controls Blue Mold

I

i

EATIXCi tobacco ])laiit bods to tompcratures
near 70 degrees F. at night I'or two to three
weeks gave control of the ]>hie niokl disease
in experiments by the V. S. ])ei)artnient of
Agriculture last si)riiig and again this fall. Speaking
before the American Association for the Advancement
of Science at l>oston on Friday (December 21)), Dr.
E. E. Clayton of the Bureau of JMant Industry re-
viewed the history of the disease in this country and
explained how he, in co-operation with Mr. J. G. Gaines
who worked at the Coastal l*lains Experiment Station,
Tifton, Ga., have been alile to grow plants in heated
beds while plants in unheated beds alongside were so
badly diseased as to be worthless.

The blue mokl disease, known to scientists as
downy mildew, iirst became a serious threat to tobacco
growers in liKV2. That year it was so severe that, even
after they had their land prepareil for tobacco, many
farmers were unable to get phuits at auy i)rice. Others
were forced to set plants late, with the result tliat their
crops Avere of low tpudity. In 1!):].'} the disease spread
to new areas, but because of weather conditions, did not
cause as nnich damage as in llKJl'.

Studies by Dr. Clayton and others in the depart-
ment revealed that blue mold caused widespread dam-
age only in years when there were j)eriotls of several
weeks when tlie minimum temperature liovered be-
tween 50 to ().5 degiees, with intervals of damp, foggy
weather. Such weather conditions are most likely lo
prevail during the last two or three weeks before* the
plants are old enough to transplant. In such years
plants that survive the llrst attack are frequently so
weakened by later attacks that they die when trans-
planted. This period was relatively short last season
and the warm weather that followed stopped the spread
of the disease.

Taking their cue from these observations, the De-
partment investigators, woiking in co-operation with
the State experiment stations, decided to give their
beds an "early summer" by arliiicial heat. The idea
worked in every case, even though the heated beds had
been inoculated with the disease. Various types of
heating ecpiipment have been used. Init the icsidts are
the same.

In his mo>t lecent tests Dr. Clayton airanged to
have beds keiit at controlled tem])eratures at night to
discover the jioint at which the disease was checked.
No effort was made to contr(»l temperatures in the day.
Four sets of beds were used. In the llrst the tempera-
ture was kept between btl-fM: in tlie second, ('h)-7(); in
the third, 70-75; and in tlie fourth, 75-80. Unheated
jjlots alongside served as checks.

The mildew appeared in its most destructive form
in the unheated areas, with all the jilants severely in-
jured, Dr. Clayton i-eports. It was also very severe in
the 60-65 beds and less serious at 65-70. There was
only a trace of disease with no damage whatever at
70-75 and 75-80. At the beginning of the experiment
all bed- were inocuIate<l with the disease, but at the
higher temperatures the disease faile<l to develop and
spread.

The heating tests will bo continued this year at
Arlington Farm, and also in co-operation with the
Coastal Plains Station,Tifton,Ga.; th«' Tobacco Station,
Oxford, N. C.; Pee Dee Experiment Station, Florence,
S. C. ; and the Tobacco Station, Greenville, Tenn. These

J4

expei'iments will seek to find the most practical type of
heating ecjuipment for general farm use. So far oil
heaters have shown most i)romise. The electrical hot-
bed heating e(pii})ment now used in some hotbeds and
greenhouses gave excellent lesults, but this metliod is
limited to farmers who have access to electrical j^ower.
In their tests the Dej)artment workers have used
glass covering on their plant beds to prevent the escape
of th(^ heat. This si>ring they will try heavy cloth
covers. It is obvious, says Di-. Clayton* that the thin
cloth commoidy used for tol)acco beds in the South will
not be satisfactorv.

Elforts to control blue mold by seed treatment,
spraying seed bed sterilization, or the location of beds
in remote areas have failed. Even a bed located on an
island where no tobacco was grown contracted the dis-
ease, and beds constructed from new material, sown
with seed known to be disease free, and located in dense
woods on virgin soil develo])ed the disease just as early
as the ordinarv beds in the localitv.

Announce Program for Maryland Tobacco

Growers

PIiODCi 'TIOX adjustment juogram for Mary-
land tobacco, tyi)e 'A'2, und"r which producers
of certain grades would reduce their PKU crop
by 25 per cent, of their base tobacco acreage
and l»ase tobacco ])roduction, was amiounced last week
by the Agricultural Adjustment Administration.

It is estimated that about 40 per cent, of the Mary-
land tobacco growers will find it advantaucous to take
part in the jirogram, the main object of which is to
re<luce ])roduction of the lower grades and im})rove the
general jirice for this type of tobacco, Kental and
benefit ])ayment to growers who take part are expected
to total about $140,000.

A rental jiayment of ^2i) for (»ach acre taken out of
pro(lucti(m as stijmlated in the agreement would be
made to ]>articipating growers before March 15, 1934,
or not more than thirty days after the Secretary of
Agriculture has accepted the agreements. In addition
there would be an adjustment ])ayment, based largely
on the sales value of the 1!KU crop, which would go to
jiarticipating growers after Decembei- 1. 1IK55, and after
they had j)resented ])roof of compliance with the terms
of the reduction agreement.

Growers wh<> sign agreements automatically be-
come members of tobacc<i control associations in their
own counties, the purpost* of which will be to handle
administrative details of the program. The cost of
operating the county associations will be paid pro rata
by the members.

The agreement provides for division of rental and
adjustment payments with tenants as their interest
may appear. It specifies the us«» which nuiy !)e made of
land taken out of production. The lu'oduction of basic
conunodities on a ur(»\ver's farm in VXU is limited,
under the terms of the auMN-enient, to not more than that
of 1932 or 1933.

Tlie reduction agreement runs with the land. A
provision in the agreement gives the Secretary of
Agriculture the privil«'«j:e of reipdring in 1935 a reduc-
tion not exceeding 30 ]>er cent, of a grower's base to-
bacco acreage and base tobacco production.

The Tobacco World

Flue-Cured Tobacco Return

(Covfinucrl from page 7)

U]) to December 1st, growers had received $89,026,-
741 for 5i)5,032,046 ])ounds marketed, out of the total
1933 cro}). The average price from the time the
markets ()j)ened in August to December 1st, was 15.11
cents per i)ound. The aveiage price ])er jjound for the
whole 1932 crop was 11.73 cents; for the 1!)31 crop it
was 8.67 cents. The avei*age for the 19.*)*) season is
expected to be somewhat higher as there is moi-e to-
bacco to be sold and prices now are materially higher
than they were when the markets o])ened.

**Tlie improvement in the flue-cured tobacco
situation that has been nuule thus far through the co-
operation of growers and buyers with the Agricultural
Adjustment Administration, must be carried into the
next crop years," Mi*. I hit son said. "Last September
growers decided that they would act to help them-
selves. They signed the preliminary agreements to
reduce ])roduction, undei' a i)rogiam which has since
been announced. The reduction ])rogram and the pre-
liminary reduction ])ledges made ])ossible the nuiiket-
ing agreement, which luis been a large factor in im-
proving the 1933 j)rice situation.

"Now, throughout the whole tlue-cured toliaceo
belt, grrjwers are signing the formal reduction agree-
ments which <iualify them for ])ayments. The ])rograni
for lifting ])iMces »>f Hue-cured tobacco by adjusting ]no-
duction and making compensation ])ayments to these
growers who tjike part, is an outright business ])ropo-
bition.

**Oidy the growers are in position to decide
whether they are willing to help themselves. The 95
per cent, sign-uj) (»f the ])reliminary reduction agree-
ments last September indicated that they are willing
to help themselves. .V comjilete siy:n-u]) of the formal
agreements now available is necessary for a successful
consumation of the Hue-cured tobacco adjustment pro-

gram.

> »

Tobacco Employment Up

MPLOY^rENT in the tobacco industry for
October, 1933, as shown by re]>orts of the Bu-
reau of Labor Statistics, IT. S. De|)artment of
Labor, has just been made public. Chewing
and smoking tobacco and snutT factories, 30 report-
ing, had 9,491 on their ])ay rolls during the month,
which was an increase of 2.4 per cent, over Septend)er,
1933, and a gain of 2.1 ])er cent, over October, 1932.
These same t'actories had iiayndls amounting to $130,-
914 during October, 1933, practically the same as those
of SeptenduM", 1933, but a gain of 5 per cent, over Oc-
tober, i:>:52.

Cigar and cigarette factories, 208 reporting, had
46,407 on tln'ir payrolls during October, 1!)33, a gain
of 5.1 ]H>r {«'nt. over September, 1933, but a decline
of 2.9 per cent. fr<»m Octoijer, 1!>32. These same tirms
had juiyrolls amounting to $(»50,04S during October,
1933, a gain of 7.2 per cent, over Septend)er, 1933, and
a gain of 5.8 per cent, ovei* October, 1I>32.

Employment in chewing and smoking tobacco and
snuiT factories during October, WKV.], was at 91.7 ])er
cent., and in cigar and cigarette factories at 69.8 per
cent.

January i, Kjjf

URIEL

CIGAR

Full
Size

5^

Long
Filler

Exceptional cigar
quality for a nickel

Other sizes

Lonf^felluws .... 3 for 25^

Perfecto* UK

Aristocrats 2 for 25^

Mfd. br p. LOIILLABD CO., INC.

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

JESSE A. BLOCH. Wheeling. W. Va Preiident

CHARLES J. EISENLOHR. Philadelphia, Pa Ex-Presideot

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 SecreUry

ASSOOATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City President

MILTON RANCK, Lancaster, Pa First Vice-Presider.»

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 ASSOCIATIONS OF TOBACCO

DISTRIBUTORS

C. A. JUST. St. Louis. Mo President

MAX TACOBOWTTZ. 84 Montgomery St., Jersey City, N. J Secretary

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

15

1

I

II

pMIbADEl2«>IiIA.

Bayuk Sunshine Club Party

S AX ENJOYABLE pie-cliinax to the end of a
]>ros])erous year, several hundred employees
of Bayuk C'li^ars, Inc., made merry at a Christ-
mas i)arty on Saturday, December 23d, under
the auspices of tlie Sunshine Clul). This is an organ-
ization of the Bayuk workers, nmtually helpful in char-
acter. There was a Christmas tree, and Santa Claus,
in the person of the rotund Frank Dalski, distributed
«:ifts. Morris Worman. ])resident of the Sunshine Club,
made a talk at the luncheon which followed, expatiating
on the orii»in and purposes of the club. Executives
were in attendance at the sunshine i)arty, as well as at
a later holiday uathcrini»- in the everjrreen-decorated
foyer, with their own Christmas tree and their own gift
distribution. The real climax to the business year
started on AVcdnesday, DectMuber 27th, and continued
for the followinu' two davs — the annual Bavuk conven-
tion, which broimht P>ayuk men into headquarters from
all parts of the country.

Yahn & ^fcDonnell Ci^rars, (!17 Chestnut Street, the
lari^est distributor of ciirars and tobacco ])roducts, and
operator of a larire chain of liiLrh-grade hotel, office
buildinu" and club cigar stands in Philadelphia and
vicinity, re])ort a fine call for their brands for the holi-
day trade tar exceeding that of the i)revious year, and
also far l»eyond their exj)ectations. Yahn & ^IcDonnell
are the local distrilmtors of the Corona and other Inter-
national Brands of tlie Ilenrv Clav i^- Bock and Co.,
Optimo and Blackstone, and many other well-known
domestic l)rands, and those mentioned enjoyed a heavy
demand and to])ped the list. Among smoking tobaccos,
Briggs Mixture, y)roduct of the P. Lorillard Company,
experienced a demand so far beyond their anticipation
that wires were disjiatched to various parts of the coun-
try in an efTort to secure an additional supply of the
eight-ounce and sixteen-ounce packages. Among their
controlled brands, the As You Like It and the Marcello
topped the list with a splendid volume of sales. All in
all, the year just closed was a considerable improve-
ment over the previous one.

Abe Caro, the Optimo ambassador, paid a visit
to the local distributors of the brand (Yahn & McDon-
n<'ll) last week.

Trade Notes

According to reports from retailers, wholesalers
and manufacturers of tobacco products in this city, the
1933 holiday season just closed was a ])Ieasant surprise
to all. There was more evidence of ready cash apparent
and purchasers were in much better spirits tlian in the
past few years. Business generally in the cigar and
tobacco industry here was very good.

The Penlo Cigar Company, formerly located at
Seventh and Cherry Streets, has leased the building
formerly occupied by the Louis King Cigar Company
on South Third Street, and the buildinu: is now being
remodeled preparatory to the moving of their manufac-
turing unit to that new location.

Grabosky Bros. Inc., North Second Street, manu-
facturers of the Koyalist cigar, report a most wonder-
ful holiday business, so far l)eyond their expectations
that they were operating their manufacturing depart-
ment during the past week, an unusual experience in
the cigar manufacturing industry during tlie past few
years. Grabosky Bros., Inc., is a com|KirativeIy new
firm in the numufacturing industry, but their brand has
gained a host of friends in the sjiort time it has been
on the market, and they report tliat the year just closed
was the best they have experienced.

i6

John AVagner & Sons, importers and distributors
of tobacco products, 233 Dock Street, report an excel-
lent volume of Christmas business, an<l have just closed
one of their best years in their cigar dejiartment. Im-
ported cigars recorded a substantial gain during the
holiday season over last year's business, and among
those imported brands distril)ute<l by the Wairner
House, Romeo y Julieta were at the head of the list.
Some sizes of this brand were entirely exhausted last
week. Among the high-gra<le domesUc brands, Don
Sebastian and (Jarcia y ^'«■-ca brands were the lenders;
and among the controlied brands of the Waicner House,
^fonticello and Wagner brands enjoyed a splendid de-
mand. On their Monticello and Wagner #3 brands of
smoking tobacco, the demand so far <'xceeded their ex-
pectations that they were forced to wire for additional
express shipments in order to satisfy the demand.

Tht Tobacco World

Did you say
MODEL?

PIPE -READY

\bsj said

MODEL

SMOKING
TOBACCO

COMMON SENSE

York County Banquet Usual Success

HE Annnal Banquet of the York County Cigar
^fanufacturers Association was held at the
Yorktowne Hotel, York, Pa., on December 7th,
and was voted a complete success by those in
charge of the arrangements, as w^ell as the guests.
About 200 guests were present and they were treated
to the usual famous York County dinner of roast tur-
key with all the trinnn'nrs. During the course of the
dinner the guests were entertained by the Red Lion
Orchestra.

Congressman TTarry L. Haines, and T. E. BrooTcs,
president of the York County Cigar Manufacturers
Association, were the principal speakers of the eve-
ning.

Congressman Haines addressed the guests on the
subject of the Code of Ethics which is in process for
the cigar manufacturing industry, and stressed, the
need of co-operation and the practice of the Golden
Kule at this time as being necessary for the attain-
ment of those results most desired, and which would
be of tremendous value to the industry. He also ex-
pressed himself as being opposed to the proposed
thirty-hour week.

Mr. Brooks reviewed the activities of the Asso-
ciation during the past year.

Sends Cigars to President

John A. Campbell, of the Autokraft Box Corp.,
Detroit branch, was a visitor in Philadelphia on Decem-
ber Kith, attending the meeting of the cigar container
industry for the purpose of electing the Code authority
fur tliai industry, and while here dispatched to Presi-
dent Hoosevelt, through E. B. Shultz, Deputy Admin-
istrator in the National Recovery Administration, a
handsome box of Webster cigars with the President's
name embossed thereon.

Philadelphians at Washington

Among Philadeli)hians prominent in retail and
wholesale tobacco products circles who attended the
public hearing on the retail and wholesale Tobacco
Code in Washington on December 15th and 16th were
George Jones, of Yahn & McDonnell Cigars; George
Frings, of Frings Bros., S. M. Blumenthal; and Daniel
Ilertman, Morris Levitone, Israel Stiefel and William
Waschler, representing the Retail Cigar Stores Asso-
ciation of Philadelphia.

January i, igs4

Retail and Wholesale Code Hearing

X December 15th and 16th the public hearing
on the proposed Code of Fair Com])etition for
the wholesale and retail tol)acco dealers, was
held in Washington, and considerable prog-
ress was made toward the speedy approval of this
Code. The hearing w^as well attended by representa-
tive men in the industry from all parts of the country.

Siegfried Hartman, counsel for the National As-
sociation of Tobacco Dealers, and the Retail Tobacco
Dealers Association of America, Inc., spoke on behalf
of the thousands of retailers and distributors in the
country who are fighting to maintain their existence,
and pointed out that the adoption of the provisions
of this Code w-as vitally necessary to this group.

During the course of the hearing it was pointed
out by Administration authorities that a provision to
effectuate the purposes of the A. A. A. had been
omitted from the proposed Code, and it was agreed
that this would be immediatelv corrected.

Those most activ^e in the preparation of the Code
were highly complimented on their work, and partic-
ularly on their fine spirit of fairness with labor.

With the hearing concluded, dilTerences of opinion
will be adjusted, and the Code will be pushed through
to its final approval by President Roosevelt just as
quickly as possible.

Warehouse Code Hearing

UBLIC hearing on a code of fair competition
for the auction and looseleaf Tobacco Indus-
try was held at the Lafayette Hotel in Wash-
ington, D. C.., December 28. The Code w\as
submitted by the National Association of Auction and
Looseleaf Warehouse Associations. Because of the
closed auction markets for tobacco, an emergency was
declared in the notice of hearing and less than ten
days time was allowed.

The Code includes wage and labor provisions and
provisions relating to brokerage charges and other fees
charged in the handling of the tobacco. It calls for the
establishment of a supervisory body of eleven mem-
bers. Ten of the members would be chosen by the in-
dustry itself, on a regional basis, and the eleventh
would be elected by the other ten.

The Code applies to warehouses in North Caro-
lina, South Carolina, Georgia, Florida, Alabama, Ten-
nessee, Kentucky, Virginia, West Virginia and Mary-
land.

IT

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"BEST OF THE BEST"

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Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Florida

OUR HIGH-GRADE NON-EVAPORATINO

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and Impart a most palatable flavor

FUVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTUN. AIOMATIZEI. BOX FLAVORS. PASTE SWEETENEKS

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Classified Column

The rate for this column it three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c ) payable
strictly in advance.

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertismg manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
mg and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa.

CIGAR FACTORY SUPERINTENDENT. MORE THAN 20
Years' Experience With One of the Largest Manufacturers.
Hand work or automatic machines. Address Box 560, care of "The
Tobacco World."

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

T r^v?L^'^"^^'^ CIGARS, IS LIKE KISSING WITHOUT

„^ e ~^?°P* ^' ^°"'' ^^'*»^"' "^'^^ yo"*- beer, but love your ci-

gars. Specially those Havana blended, "Good to the last Puff "

^ufactured by A. Ramirez & Co., Post Office Box 1168. Tampk,

fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, StV^YokT cfe

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

Registration, (see Note A), $5.00
bearch, (see Note B), l.OO

1 ransf er, o 00

Duplicate Certificate, 2 oo

than ten m\tulThV"ets than'twL^t^'Jie Pn"''***V.*J^* 'T^'^' «' »°«
Dollar ($1.00) will be made If ft n™^^ i^'^' *" •dditional charge of One
(20) title,, buf less tff ihir y one nn In'iSn-:*'^'^'"? °^ "^S*^ ^^.n twenty
($2.00) will be made and so an additional .1, ^**'*'?";^' ""^A^V "^ ^wo Dollar.
2^^J«--0^t^^ ($1.00) will be

REGISTRATIONS

"^W ff'rk'^N 7"'''''- '^^" "^^^" J"'> - ''''■ ^'-- Wishny,
"S7Sfel^^S,,!;rPr- ^-'"--.-33. Geo.Zif-
"^^""^rr^C^-^fL^ — r ;,

TRANSFERS
orr,,lt^ I • 1 ,- • ''> '■'^"'•8' ^':M<.-ecl New York, \. Y. Traiis-

the rpfrJ^fr-i.it ♦. ♦! \ • """^P- J>'tir<)it. .Mich., successor to

Docenfb:' ?. I93X "" •'■""'"" ^"^ ^"^'"'^ C°- »^'-". ^^ich..

specified |,,ou«h apparently -'. h!.";':,:: rre^^.e^d^ra": 0?^
Affil.ated Bureaus, has been in nse by Nathan wlhnvVew York

^'visl;;.'"^•;.^^-V-"N•"■V.: j^:,:e ?S",^T,'f "-' '"^ -- - m«

THE STANDARD HAVANAS_10 665 r S T I

.■ or ci«ar. Re«i.ere„ April I. ^% \^.::,J;^roir'^l

New \vrk V y""* ' "'""^ 'r"''"'' ="■'""'•<•'' ''V J"'i"» K "rfei"

^ N>w 'o^k! •^•: ^:: V!;l^;:^:^'^r\^ir '-- '■■"""' Cigars, In";

EL GRANDEVO:— 29,791 fTobacco i.eafi and 30 387 (U <; T
t^^reV):;"-^.!'-,^;, 7"r ^l^-''— "er^o^i^'a,^- M,ac'o.' rT«:

TSelrVd l'?:t\!oii;;:;;;'\':i^;;;rv-r-^;;;;, ,^i;:- ^'-^ ^ "■

**What a welcome visitor
The Tobacco World
must be to wholesalers and
retailers !

"If they are only half as
interested in reading it as
we ourselves are, we're glad
our ad is in it regularly** —

says an advertiser.

j'-.^.V

JANUARY 15, 1934

ECEIVED

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la,, Fa.
Hanover, Fa,
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION

Lima Ohio

A Natioi\Wide Service

York, Fa.

Chicago, 111,

Detroit, Mich.

Wheeling, W, Va.

■■ ■■ m

m^'^/;

iniiminimiiniiiiimifTTTfTn

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA.

WOODEN

Are the Only Natural Humidor for Cigars.

After all
nothing satisfies like
a good cigar ^

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember thar Regardless of Price

THE BEST CIGARS

ARK PAC3Ua> IN

WOODEN BOXES

THE TOBACCO WORLD

VoL 54

JANUARY 15. 1933

No. 2

The TOBACCO WORLD has signed the President's agreement and
is operating under NRA Code, gladly and wholeheartedly co-operating to
the fullest extent in the Adniinistratiotis effort to promote industrial re-
covery.

.«jITn the advent of the National Industrial Be-
\^ covery Act, those industries which did not luive

a trade association in good functioning order

immediately began to plan for such an organi-
zation, and those industries which did have such an
organization breathed a prayer of thanksgiving that it
had been preserved through the years of depression
instead of being allowed to drift into oblivion as so
many were allowed to do during those years.

A statement just issued by Wilson Oompton, Chief
of Trade Associations, National Recovery Adminis-
tration, is otTered for your careful attention on anotlier
page of this issue and, we believe, otfers fairly con-
clusive evidence as to why all members of an industry
should iimnediately phin to join their trade association
and co-operate with it to the fullest extent if our hopes
for a restoration of prosperity are to be realized and
made permanent.

Mr. Compton says, **Wliat is going on in America,
as I view it, is a gigantic struggle between socialism
and regulated individualism. Uncontrolled individual-
ism as manifested in the past decade has failed. If
regulated individualism likewise fails the obvious alter-
native is socialism in some form, with its supplanting
of individual initiatives and its suppression of individ-
ual rights.

*' There is more at stake than that. 1 do not be-
lieve that regulated individualism will fail. If it fails
it will be because direct government regulation, which
ultimately is necessarily political, will have supplanted
industrial self -regulation. The National Industrial
Recovery Act gives industry not only the opportunity
for self-regulation but, what is more important, the
enforceable means of making it effective. No great
industry is acting wisely which does not promptly
respond to the nation's challenge or which does not de-
liberately, courageously and in good faith seek to estab-
lish in this country the right, the etfectiveness, and the
public dependability of industrial self-government.

** Trade and industrial associations are the back-
bone of the system of industrial code government au-
thorized under the Act and lieing diligently and coura-
geously developed by the National Recovery Adminis-
tration.*'

And so, we urge again, get in touch with your trade
association immediately whether you are a retailer,
manufacturer, wholesaler or one of the great army of
salesmen, and join with them in this great co-operative
effort for the betterment of each and every one in this
great country of ours. They need your moral and
financial support, and the greater the number of mem-
bers enrolled in each trade association, the greater are
the possibilities for them to be of great benefit to you
and your industry.

DVANCE of cigarette prices from $5.50 to
$6.10 per thousand is definite, tangible evidence
of progress in business recovery, not as re-
gards cigarettes alone but commodities gener-
ally. The present price closely approaches that of the
years when cigarettes rose to their highest peaks. They
were selling at $6.40 per thousand ten years ago, and
at that price production increased from 1923 to 1927, in
successive years as follows : Sixty-six billion, 73 billion,
82 billion, 92 billion, and 100 billion. During the greater
part of the next two years the price dropped to $6
and the ])roduction climbed to 108 billion in 1928 and
122 billion in 1929. Then, back again to the $6.40 figure,
manufacture reached the staggering total of 123 billion
in 1930.

With an increase to $6.85 in June, 1931, sales
(lro])ped to 117 billion that year and to 106 billion in
1932. There was a reduction to $6 in January of last
year, followed by another cut to $5.50 in February, and
the ])roduction curve turned upwards, showing 111 bil-
lion for the twelve months ended November 30.

There is a world of encouragement for all business
in the return of cigarette prices to a closer approxi-
mation of the figure at which sales were greatest. And
there is si)ecific encouragement to the retail tobacconist
in the thought that this price rise, coming in advance of
the hoi)ed-for and shortly-expected approval of the Re-
tail Tobacco Code, will mark a return to the days when
he shall again become a merchant, with a fair profit on
his sales, instead of a mere dispenser of service.

Cj3 Cj3 Cj3

*«jHEN you are giving thought to this business
y^^ you are in, do not overlook the fact that in the
fiscal year of 1933, for w'hich the report has
just been issued, the tobacco industry paid
taxes to the (Jovernment amounting to $402,739,059.25,
the largest single item of revenue with the exception of
tlu' sales tax, which covers a variety of things, includ-
ing licjuors, stamp and excise taxes, communications,
checks, oleomargarine, etc. The tobacco taxes were
$4,160,440.69, or 1.04 per cent, greater than the collec-
tions for the previous fiscal year. Tobacco taxes repre-
sented 24.86 per cent, of the total Internal Revenue col-
lections of 1933.

Cigarettes accounted for 81.55 per cent, of the
total tobacco taxes; tobacco and snuff, 15.36 per cent.;
cigars, 2.85 per cent.; the remaining .24 per cent, com-
ing from cigarette papers and miscellaneous items.
As compared with the previous year, the following ma-
jor increases or decreases w^ere recorded in collections:
Cigarettes, increase, $10,885,333.56 (3.43%); large ci-
s^ars, decrease, $2,902,683.59 (20.43%); manufactured
tol)acco, $2,579,814.76 (4.45%); snuff, $441,302.00
(6.45%); cigarette papers, $726,689.11 (44.43%).

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B Hankins Secretary Office 236 Chestnut Street, Philadelphia. Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able oni?\?those .;ngag^^^^ industry. $2.00 a ;ear. 20 cents a copy; foreign. $3.50 a year. Entered as second-class mail matter.

December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

Tobacco Conditions Abroad

Germany— It is stated in the trade that German
tobacco growers will plant cigarette tobaccos from ac-
climatized Oriental grades during tlie coming 1933-34
season, and if the cultivation of these grades of cigar-
ette tobaccos meets with success, the area under culti-
vation for tobacco will be extended and thus i)rovide
additional employment. The German Tobacco Re-
search Institute expects that the cultivation of tobacco
free from nicotine or of small nicotine content will
also be undertaken by tobacco planters during the com-
ing season. (American Consul W. A. Leonard.)

Egypt — During the month of Oct()l)er, 1933, as re-
ported by the Egyptian Government Customs Admin-
istration* withdrawals of leaf tobacco amounted to
1,054,409 pounds and manufactured tobacco to 7194
pounds. Imports of leaf tobacco totaled (5744 bales,
and exports of cigarettes totaled 70,887 jmunds. Stocks
of leaf on hand at the end of the month amounted to
255,070 bales. (American Connnercial Attache Charles
E. Dickerson, Jr.)

Greece— The monthly report of Offices for the
Protection of Greek Tobacco, as reviewed by the To-
bacco Division, Department of Commerce, shows that,
out of the 1932 cro]) of 59,305,038 pounds, 50,275,478
pounds were sold by the end of October, leaving 9,029,-
560 pounds of that croj) on hand. Owing to the re-
served attitude of buyers in expectation of the law
reducing the rate of interest accruing to banks on ad-
vances against i)ledged tobacco, business transactions
in manipulated tobaccos, as well as in tobaccos sold by
growers, was rather dull. Sales during October
amounted to 1,519,437 pounds.

Cuba — A strike among Havana tobacco workers
has aiTected most of the large cigar factories. It is
said that unless the strike is promptly settled, export
movement of cigars, which is usually very heavy at
this season, will be seriously affected, due to tlie fact
that the striking workers are affiliated with harbor
workers, and the affected factories have been re-
strained from making shipments of cigars. (Commer-
cial Attache Albert F. Nufer.)

Turkey — There is rei)orted to be pending before
the Assembly of Turkey a bill providing for the crea-
tion of a corporation half of the capital of which will
be supplied by the state and which will distribute
Turkish tobacco and tobacco i)roducts abroad. (Con-
sul Charles E. Allen.)

Australia — Effective November 25, 1933, the
Australian import duties on unmanufactured leaf to-
bacco entered from all sources to be locally manufac-
tured into tobacco other than for cigars and cigarettes
were increased as follows: Unstenmied, per pound, 3s.
6d., from 3s.; stenmied, jiartly stemmed, or in strips,
per pound, 4s., from 3s. (kl. The existing margins of
preference are retained. (Courtesy of Australian Cus-
toms Representative, New York.)

Canada — A ])rovincial estimate places the Bright
flue-cured tobacco crop of Ontario at 23,000,000 pounds.
Ontario tobacco prices tend to be firm, and current
sales are reported better than in October, with tobacco
growers well organized to protect prices. (Commer-
cial Attache H. M. Bankhead.)

Ireland — If and when the Irish Free State car-
ries out its present ideas of increasing i)roduction to
a point near consumption, and if a taste can be cre-
ated for Irish tobacco, the United States might suffer
the partial loss of the market for dark tobaccos of
Kentucky, Tennessee and Virginia. Irish Free Stat©

manufacturers obtain their supplies of American to-
bacco direct from the United States and through
dealers in Dublin, Liverpool and London. The aver-
age volume imported during 1924-1928, inclusive, was
9',279,54() pounds antl, during 1929-1932, inclusive,
10,165,402 pounds. During the first -named period, di-
rect shipments from the United States were approxi-
mately 20 per cent, of the total, and, during the second-
named period, direct shipments approximated 42 per
cent.

Outside Operations of Chain Stores

Financial results of chain stores are often affected
to a great extent by other than chain stores' operations,
it was revealed on December 31st in the final factual
study in the series of reports on chain stores resulting
from the investigations of the Federal Trade Connnis-
sion. This latest report, which is being submitted to
the Senate, is entitled *aises of Capital and Applica-
tion of Tobacco Chains.'*

The Federal Trade Commission declared it found
mend)ers of the tobacco chain group reporting a large
proportion of their total capital devoted to outside
operations. Some tobacco chains showed operating
losses on chain store oi)erations, at the same time earn-
ing a substantial amount of outside income which en-
abled them to obtain a net income on investment.

Of the total available funds of eleven companies
($66,290,893) analvzed for the five years from 1925 to
1930, inclusive, 41 per cent., or $27,106,019, were paid
out in dividends. This exceeded the net income, and it
was necessarv to draw^ funds from other sources to
make up the deficiency. More than $19,000,000, or 29
l)er cent., of the total available was invested in activi-
ties other than chain store operations, such as securi-
ties in other companies and real estate, while more than
$13,000,000 were placed in capital assets.

Income from operations of the business provided
more than $26,000,000, or less than 40 per cent, of all
funds; borrowed capital furnished more than $21,-
600,000 (33 per cent.) ; profit on capital assets sold,
more than $7,000,000 (11 per cent.), and capital stock
issued, approximately $6,000,000. These receipts were
not sufficient to carry on the normal operations of the
business, and working capital was decreased by more
than $4,000,000.

Cigarette Prices Advanced

The long-looked-for raise in wholesale prices on
cigarettes became a reality on Monday night, when the
R. J. Reynolds Tobacco Co. announced new price? on
their Camel cigarette of $6.10 per thousand. The new
price became effective on Tuesday, January 9th, and
was an increase of 60 cents per thou^^and over the price
])revailing since February, 1933. The other companies
were quick to fall in line and the price on all the so-
called "Big Four'' popular brands were advanced to
the same figure. This would seem to establish the re-
tail price at two packages for twenty-five cents and
should prove of great benetit to the retailer, manufac-
turer and jobber, and is in line wnth increased manu-
facturing costs as a result of the National Recovery
movement.

The Tobacco World

Epochal Events in 1933

Follmcinff the release of the anmuil report of the Commissioner of
Internal Revenue for the fiscal year ended June .?o. /(/?.?, the Tobacco
Merchants Association of the T. S. issued its year-end Barometer, from
which the followint] paragraphs have been taken, as a matter of record,
because of their interest to the trade:

HE fourth year of the world-wide depression
has passed out, leaving a record of epochal
events that will form an outstanding chapter
in American history. Beginning with the
bank moratorium shortly after the inauguration of
Franklin 1). Roosevelt as President, there followed in
rapid succession the enactment of the Agricultural
Adjustment Act and the National Recovery Act; the
codification of industries and the adoption of the Blue
Eagle emblem ; the movements to reduce farm acreage
to curtail crops and to raise the prices for farm prod-
uce; the marketing agreements and processing tax
levies; the gigantic public works program; the vast
extension of the operations of the R. F. C. and the
inauguration of a new monetary policy. All of these
developments with their intense complexities and their
new and intricate problems have helped to make the
1933 record one that wull long be remembered.

Referring particularly to the tobacco industry, it
should be added that, during the year, the trade in al-
most every State of the Union has been seriously men-
aced with tax legislation in one session after another,
totalling not less than forty-three regular and forty-
four special legislative sessions (to which may be
added the sessions in Alaska and Puerto Rico),

But, happily, no new tobacco taxes were levied
except in the State of Arizona, while the cigarette tax
was reduced in one State and the cigarette dealer *s
license fees were reduced in several States.

During all those hectic times, those days and
months of continuous and never-ending activities in
dealing with the new developments, new situations,
new problems and new emergencies, the tobacco in-
dustry, in keeping with its long record of sterling pa-
triotism and public spirited action, has steadily, firmly
and unfailingly displayed an intensely patriotic desire
to co-operate with the Government in every possible
way, coupled with a genuine willingness to make all
needful sacrifices for the sake of the common cause
and the common good.

Several branches have recorded an increase in
volume during the twelve months from December 1,
1932, to November 30, 1933. This is true, notably, in
the case of cigarettes, over 111,000,000,000 of which
were withdrawn for consumption as compared with
103,0(X),000,00() in the previous year, and in the case
of snuflF, which increased from about 36,000,000
pounds to 37,(XX),000 pounds.

Class A cigars also rose slightlv from 3,700,000,-
000 to about 3,9(K),0(K),000, and it is particularly sig-
nificant that this class has shown an increase for every
month from April 1933 on, as compared with the corre-
sponding months of the previous year. How^ever, it
must be noted that the cigar business as a whole suf-
fered a decline of about 4 per cent, in volume.

The consumption of manufactured tobacco fell off
slightly, but judging from the increase in cigarette
paper w^ithdrawals, as reflected in the revenue reports,

January 1$, 1934

it seems evident that the ''roll your own" type of to-
hacco registered a substantial gain.

Collections from tobacco taxes amounted to $402,-
739,059.25 for the year, an increase of $4,160,440.69,
or 1.04 per cent., compared with the previous year.
Tobacco taxes represent 24.86 per cent, of the total
internal-revenue collections of 1933, compared with
25.59 per cent, for the previous year.

The taxes on small cigarettes, the source of the
greatest portion of the tobacco tax collections,
amounted to $328,418,413.58, an increase of $10,885,-
333.56, or 3.43 per cent, over the previous year, and
represents 81.55 per cent, of the total tobacco taxes
collected during 1933, as compared with 79.66 per cent.
for the previous year. Principal decreases in tobacco
tax collections were $2,902,683.59 on large cigars,
$2,579,814.76 on manufactured tobacco, and $441,302
on snuff. The taxes collected on cigarette papers and
tubes amounted to $918,552.84 and $39,592.50, respec-
tively, decreases of $726,689.11 and $15,668.40, respec-
tively, compared with the previous year.

Taxes were collected in 1933 on 9,819,889 pack-
ages of cigarette papers of domestic manufacture and
on 57,894,783 packages of imported cigarette papers,
an increase of 1,812,063 packages and a decrease of
61,750,289 packages, respectively, as compared with
the previous year ; and on 25,896,200 cigarette tubes of
domestic manufacture and 171,702,500 imported ciga-
rette tubes, a decrease of 110,084,300 and an increase
of 31,106,350 tubes, respectively, as compared with the
previous year. There were removed from the place
of manufacture and imported during the year 1,458,-
496,429 and 457,074,483 packages, respectively, con-
taining not more than twenty-five papers each which
were not subject to tax, increases of 439,819,611 and
214,475,250 packages, respectively, as compared with
the previous year. There were also removed during
the year from the place of manufacture 20,893,300 ciga-
rette tubes exempt from tax for use by cigarette man-
ufacturers and for use in the manufacture of medici-
nal cigarettes, an increase of 7,028,250 cigarette tubes
compared witli the previous year.

An enumeration of the companies operating in the
two years reveals the following comparisons, the first
iigure in each instance representing the number of firms
in 1932, and the second the number in 1933: Tobacco
manufacturers, 1,055-1,036; cigar and cigarette man-
ufacturers, 6,088-5,900; Dealers in Leaf Tobacco,
2,469-2,436.

Albert Gold, superintendent of Henry Clay &
Bock & Co., factories in Trenton, N. J., paid a friendly
visit on Friday to Yahn & McDonnell, local distrib-
utors of the International Brands.

Out of town visitors last week were Frank Swick,
of Simpson, Studwell & Swick, New York City man-
ufacturers of Chukkers and other high grade ciga-
rette brands; Mannie Perez, of Marcelino Perez &
Co., Tampa, manufacturers of Redencion; Tony Gu-
tierrez, manufacturer of the Carlton, Passaic, N. J.

News From Congress

_ -AND

Ft D E R A L

Departments

From our Washington Bureau 62Z Albee Builoing

KOTECTIOX of the American export trade in
tobacco is sought by Congressman Kerr of
North Carolina in a measure he has intro-
duced in tlie House of Representatives, pro-
hibiting the exportation of tobacco seed and live to-
bacco plants except for experimental i)urposes. p]x-
ports in violation of the measure would be i)unishable
by a fine not exceeding $5,000, or by imi)risonment for
not more than one year, or both.

CJ) Ct3 Ct]

BUSE of the privilege enjoyed by travelers in
bringing tobacco and intoxicating ])everages
into the United States when returning from
abroad has led to the imposition of drastic
restrictions bv the Treasurv I)e])artment. Heretofore

» • I

there has been no limit, so far as customs duties were
concerned, other than the $100 exemption allowed for
merchandise bought abroad as an incident to a bona
fide trip for other reasons than the purchase of for-
eign merchandise to be brought in duty-free under
the exemption.

The limitations now imposed permit the bringing
in by -adults of not more than fifty cigars, 200 ciga-
rettes or three pounds of manufactured tobacco. The
amount of liquor which may be brought in is limited
to one quart.

CJ3 Ct3 Ct3

OSSIBILITIKS that small concerns mav have
been adversely aiTected by application of the
industrial recoverv act are being studied bv
a special committee created by the business
advisory and planning council for the Dejiartment of
Commerce. Information is being gathered in a va-
riety of trades of cases of damage to small compa-
nies which are attributed to the eflfects of the recovery
act. On the basis of this data, the connnittee will rec-
ommend definite and practical measures to correct
the situation.

**It is apparent already that the influences of XRA
upon small concerns vary widely," it was stated at
the department. **Some have been reported as hav-
ing been greatly helped, others as having been closed
down completely. Moreover, there is no ])recise size
of concern which can be called * small', since a small
company in one trade may be bigger than the largest
in another.

"In its early stages, therefore, the study will ymy
attention to any reports of damage upon which de-
tailed information is given and which can reasonably
be attributed to the effects of the recovery act."

6

OBACCO investigations of the Bureau of Plant
Industry of the Department of Agriculture,
including studies of tobacco production and
handling, will be continued during the fiscal
year beginning July 1, next, at about the present level,
despite a reduction of more than $10,000 in appropria-
tion, it is shown by the budget submitted to Congress
bv the President Januarv 4.

For the coming year, the bureau is to be given
$69,245. The present appropriation is $80,000, but
under the economy program instituted by the Presi-
dent last spring, $14,108 will be saved during the cur-
rent year. Practically all of the increase over this
year's expenditure of $65,892 is designed to be used in
restoring one-third of the pay cut of 15 per cent, in
Federal salaries which is now in effect.

The same situation i)revails with respect to the
fund for the collection and i)ublication of statistics
on tobacco, for which $15,805 is to be provided. The
l)resent ai)i)ropriation is $23,200, but only $15,100 is
to be spent.

The Tobacco Division of the Department of Com-
merce is to be given a fund of $12,884 against a pres-
ent approj)riati()n of $10,779.

ft] Ct3 Ct3

XEW tariff theorv, differing radically from the
historic principles of the Democratic and Re-
publican parties, contemplating the classifica-
tion of all American industries with a view to
selecting those which can best be ** sacrificed" in the
carrying out of a long-term international trade policy,
is under consideration l)y the Administration.

Completion of the plan will be followed by the in-
troduction of legislation vesting in the President
broad powers to increase or reduce duties within cer-
tain limits and to regulate imports, practically strip-
ping Congress of its tariff-making powers.

Each branch of every primary industry, includ-
ing all agricultural and extractive industries, would
be graded under the proposed scheme on the basis of
its economic suitability to the TTuited States as meas-
ured primarily by past efficiency; possible contribu-
tion to national defense; wage levels and other indi-
cations of general social utility; number of people
emi)loyed an<l vested interest represented; geograph-
ical distribution; alternative sources of foreign sup-
ply, and dependence, for proi)er operation, on other
industries.

A half-dozen grades have been proposed, the first
of which would include export industries requiring

{Continued on Page 17)

Thi Tobacco WorU

Program for Tobacco Growers

By J. B. HUTSON
Chief of Tobacco Industry, Agricultural Adjustment Association

ONSIDERING the situation of tobacco growers
as a whole, we find that the receipts from the
sale of all types of tobacco declined from ap-
proximately $286,000,000 in 1929 to $105,000,-
000 in 1932. A decline in dollar income of approxi-
mately $181,000,000 to tobacco growers in three years
resulted in an acute situation. Tobacco growers were
being forced off their farms; some sought to shift to
other types of farming in which the chances for a
decent return were just as remote. The prospects for
an improvement were very dismal at the beginning of
1933. Excessive supplies of most types of tobacco and
the general outlook for business made the situation
for tobacco growers appear decidedly unfavorable. It
was difficult to dispel gloom and pessimism when the
facts were squarely faced.

It is significant to note that during the period in
which returns to tobacco growers declined so dras-
tically, the manufacturers were able to continue to in-
crease their profits. In fact, they were able to main-
tain them on a high level during the depression period
while farm i)rices were sinking to such disastrous
levels. The total profits of fifty-two manufacturers
was $146,000,000 in 1932 as compared with $76,000,000
in 1933. There were other branches of the tobacco
industry which were likewise able to maintain their
])rofits at a high level during this period of declining
farm prices.

Obviously the tobacco grower was not receiving a
fair and equitable share of the consumers' tobacco dol-
lar. The answer of the national Congress to this
anomalous situation was the Agricultural Adjustment
Act, a mandate to the Secretary of Agriculture to pro-
cure for the producers of the nation's basic agricul-
tural commodities a fair share of the national income —
to establish that parity between the farmers' prices
and the prices for the things he buys that existed, for
tobacco, during the ten years from 1919 to 1929.

Acting on this mandate from Congress, a tobacco
section was organized in the Agricultural Adjustment
Administration and began to function, drafting plans
for aiding the tobacco j)roducers. In order to have
a definite objective before us, we set out to help obtain
for tobacco growers approxinuitely twice as many dol-
lars as they received last Vear. When we examined
the situation in detail, we found that large stocks of
j)ractically all types of tobacco had accumulated for
one reason or another during the i)ast few years. A
large crop of most types had already been i)lanted and
as the harvest time aj)[)roached, we knew that the cur-
rent crop was going to add more than 200,000,000
pounds to the surplus supplies.

Many plans for dealing with the various types of
tobacco were carefully considered. (Jrowers them-
selves came to Washington and we have been in con-
stant consultation witii the representatives of the to-
bacco growers as well as otiiers in the tol)acco industry.
From these discussions and through our various
efforts in the field in dealing with the fundamental
l)roblem of controlling production, a general policy for
tobacco has evolved. It is a program which has al-

Jamtary 15. 1934

readv demonstrated its effectiveness in the flue-cured
area and one which, we confidently believe, will bring
us close to our goal of doubling the income of tobacco
growers for the current marketing season.

We have eleven production adjustment programs
in j)rogress at the present time. These programs for
the different types of tobacco have two parts which
constitute our present policy for increasing the income
of tobacco producers: First, growers are offered con-
tracts to reduce production. As they agree to reduce
production, we proceed to negotiate with the buyers
for higher prices. Backing up a production adjustment
program for the 1934 crop with a marketing agree-
ment on the 1933 crop, means in effect, that we are at-
tempting to capitalize the action that the tobacco
growers are taking to reduce production next season
in terms of higher prices for the current season.

Through these two instrumentalities — the produc-
tion adjustment programs and the marketing agree-
ments— we hope that, in spite of the very large sup-
jjlies that confronted us at the beginning of the season,
to help tobacco producers obtain more than $200,000,-
000 during the current marketing year as compared
with the $105,000,000 received for the 1932 crop of
tobacco.

In working out these programs, we have first con-
sulted with the tobacco jn-oducers themselves to find
if they were willing to join in a unified effort with
their neighbors and with their Government to restrict
tobacco production to market requirements. Finding
an eagerness on the ])art of the growers to participate
in a program of this character, we then began nego-
tiations with the principal domestic buyers to work
out marketing agreements that would mean improved
prices for the current crop.

As I have ])reviously stated, the profits in some
]>ranches of the tobacco industry have been relatively
large during the i)ast few years. In the formulation
of plans to effect a more eipiitable distribution of the
consumers' tobacco dollar as between the growers on
the one hand and the other branches of the industry
on the other, we have found the tobacco manufacturers
generally willing to join with us in getting higher
prices for the growers. One very important reason
for that is that, acting with the advice and counsel of
tobacco growers, we have been able to devise plans
that would protect the manufacturers against ex-
cessive supplies being brought to the market next year
or the year after. Another important reason is the
fact that where our programs have resulted in in-
creased costs to manufacturers the competitive rela-
tionship between individual manufacturers has not
been materially changed by these added costs. And,
in the ])rocess of these negotiations, I have found a
disposition among the numufacturers generally to do
what they can, consistent with accepted business pol-
icy, to bring about a greater return to the growers. I
conceive this conunendable attitude to be a further
recognition by business and industry that the prin-
ciple of parity prices for agricultui*e is not only just
for the farmer, but good business.

We set out first to deal with the cigar-leaf situa-
tion. Supplies of this type were sufficient to last for
five years at present rates of consumption. AVe asked
cigar-leaf tobacco growers to reduce the 1933 crop to
a level 50 per cent, below the 11)32 crop. Some reduc-
tion had already been contemplated and although the
program was inaugurated after the planting season
was well under way, more than 80 per cent, of the
growers joined in the plan. As a result, the present
crop of cigar-leaf tobacco is approximately 60 per cent,
of consumption. However, the farmers still hold a
portion of the crops of earlier years, manufacturers'
stocks are still large. Two or three years more, with
production at a reduced level, will be necessary before
a healthy, balanced situation is restored. Meantime
payments will be made those who participate in the
reduction program and every effort made to obtain
a market and a fair j)rice for the reduced output.
Rental and adjustment payments made cigar-leaf
growers up to this time approximate $1,500,000.

Our next program concerned the Hue-cured types
gro^\Ti in Virginia, the Carolinas, Georgia and Florida.
Stocks on hand were not excessively large but the ma-
turing crop promised to be about twice as large as
the preceding season's short output and somewhat
above the level of consumption. ^larkets opened Au-
gust 1, and as the selling season advanced, it became
apparent that the crop was even larger than antici-
pated earlier in the season. By the time the markets
opened in Eastern North Carolina, those in the tobacco
trade were convinced that the crop was going to be a
very large one. AVhen they offered less for the to-
bacco, markets were closed. Plans were near comple-
tion for a production adjustment program, but to meet
the emergency a tentative agreement was offered
growers. More than 90 per cent, of the growers signed
during a two weeks' period, agreeing to reduce pro-
duction the next season.

As soon as growers had given evidence of their
intention to reduce the next crop, a marketing agree-
ment was concluded, under the terms of wliich the
leading domestic manufacturers agreed to pay prices
materially higher than those which prevailed prior to
the closing of the markets. Since the domestic buyers
purchase in most grades, comjietition caused the prices
paid by exporters to advance ahnost as much as the
prices paid by domestic manufacturers, it now ap-
pears, as the result of this coml)ined attack on an
emergency problem, flue-cured growers will receive be-
tween two and one-half to three times as much income
during the current marketing year as they received
last year and more than twice the amount they re-
ceived for the 1931 crop. The adjustment campaign
is making good progress in the fine-cured area and
the vast majority of the growers have already agreed
to reduce their production 30 j)er cent, next year. We
next focused our attention on the Hurley situation and
at the same time engaged in the development of pro-
grams for the fire-cured and dark-air-cured types.

Stocks of Burley are excessively large this year.
For the fifth year in succession, growers produced
more Burley tobacco than is recjuired for consump-
tion. The crop this year, as most of you know, is about
50 per cent, above consumption, and there is in this
country, including the present crop, as much Burley
as normally would be used in four years, which is
about 50 per cent, above normal. \Xq spent several
weeks in numerous conferences with growers and
others interested, in Burley tobacco from all sections
of the country in developing a program for this type

of tobacco. After these conferences, the adjustment
])rogram was completed and announced just prior to
the opening of the markets in December. Since that
time there has been concluded a marketing agreement
under which the domestic manufacturers agree to pur-
chase a minimum of 2()0,00(),000 pounds of this year's
crop at an average price of not less than twelve cents
per pound. The buyers agree to purchase against
their requirements in the usual and ordinary manner,
and it is believed that the competitive situation is such
that it will be to the interest of all concerned to make
the crop average not less than twelve cents. This
price will depend to some extent on how promptly and
completely Burley growers act in signing the contracts
agreeing to reduce production next season. Reduc-
tions of 33 1-3 per cent, and 50 per cent, of the base
period are being offered to Burley producers.

About the same time the Burley program w^as
announced, the adjustment plans for fire-cured and
dark-air-cured types were formulated. Fire-cured to-
bacco w^as formerly consumed in large quantities in for-
eign countries, but foreign consumption has drastically
declined in recent years. Exports of the fire-cured
types have declined from around 200 million pounds
in 1923 to below 100 million i)ounds during the past
several years. The production of competing types has
been increased in many foreign countries and in some
instances the consumption of the particular products
in which fire-cured is used has declined. Consumption
of fire-cured tobacco in the United States also has
declined in recent years. In other words, the w^orld
is now demanding only a small crop of fire-cured to-
bacco, whereas land and equipment are available for
producing a nmch larger crop. Total supplies are now
large in relation to present consumi)tion requirements.
The problem is how to make the best of a very unsatis-
factory situation. During the past two weeks, growers
in Kentucky, Virginia and Tennessee have been sign-
ing contracts to reduce the next crop by 25 per cent.

We have under way a reduction campaign for the
dark air-cured types. World consumption of these
types is approximately GO j)er cent, below the level of
ten years ago. Export trade has declined until there
is little more to ])e lost. Consumption during the past
year has been about 10 per cent, smaller than during
previous years, but sup])lies are e(|ual to those of a
year ago. Growers of these types are being asked to
reduce production 30 ])er ccmt. next year.

Negotiations are now under wav for marketing;
agreements on all the ilark types of tobacco. These
negotiations entail four sepaiate agreements. The
proposed agreements have already been drafted and
some of the commitments tentatively agreed upon.
Under the terms of these proposed Jigreements, the
l)rincipal domestic buyers of these types would agree
to i)urchase quantities equal to the amounts used last
year at prices ranging up to 100 per cent, above last
year's prices. The agreements ])rovide a minimum
auction price bid of $1.50 on all the dark types, with a
jnovision that on the tobacco foi- which no offer is
made a price of $1.25 will be paid. In addition we are
looking carefully into the j>ossibility of regaining some
portion of the export trade for dark tobacco lost in
recent years. To this question in particular we w411
be directing our attention during the next few weeks.

If a large percentage of growers sign the adjust-
ment contracts, it is expected that the total returns
for fire-cured tobacco during the current marketing

{Continued on Page 17)

Th4 Tobacco WorU

ALWAYS tAe Jlfiest 5o6aau) and ONLY tAe Writer ^£em€6

January 1$, 1934

New Outlook for Trade Associations

By WILSON COMPTON
Chief of Trade Associations, National Recovery Administration

HE Xational Industrial Recovery Act was
hailed as a Magna Cliarta for trade and in-
dustrial associations. But it is more than that.
It is a challenge to both industry and public
service.

Trade and industrial associations are the backbone
of the system of industrial code government author-
ized untier the Act and being diligently and coura-
geously developed by the Xational Kecovery Adminis-
tration. But this background of trade organization is
as yet inadequate. Code government and the oppor-
tunity which it aifords for deliberate industrial self-
regulation have conferred i)rivileges and imposed
duties to which the association establishment of Ameri-
can industry has not yet adjusted itself. There are
in this land many thousands of trade and industrial
associations, local, regional or national in scope. But
of these only a few hundred were effective; the others
were struggling against difficult, if not insui)erable,
obstacles.

Co-operation in industry, under our traditional
system of competition enforced by the sanctions of re-
pressive statutory prohibitions, has been under a con-
spicuous handicap. Much public mention has been
made of the anti-trust laws. No one will seriously
question the wisdom or the i)ublic value of their objec-
tives. Nor will any person informed of the facts and
problems of industry and conunerce under present-day
conditions be left in doubt of the unwisdom of the man-
ner in which it was sought to accomplish these public
objectives under the anti-trust laws. Public protection,
and not the particular fornmla by which it is secured, is
the important consideration. The Sherman Act, though
sound in purpose and principle, was inflexible in ajjpli-
cation and inconsiderate of changing competitive con-
ditions in a world of economic change. In many respects
and in manv industries the act had become a destroyer
of public interests which it was intended to protect. In
many industries it became the greatest ally of monop-
oly. It deprived small enterprises of the privilege of
co-operation with others, which was their only effective
means of meeting the competition of large enterprises.
Etven among the more highly centralized industries, the
heavy hand laid upon effective co-operation left com-
petitors both large and small at the mercy of destruc-
tive practices.

Competition in Changed Times

As long as public purchasing power was aV)undant
and the demand for commodities heavy, the industries
and trades were enabled l)y and large to withstand
these adverse conditions, to absorb them, and to can*y
on. But when public purchasing power fell by half and
the demand for commodities vastly declined, thev were
confronted with the unhappy choice of joining in the
national epidemic of competition in wage reductions or
risking annihilation.

The American people were being called upon to
pay too high a price for the preservation of the legal
forms of competition, which had lost both their eco-
nomic and humanitarian substance.

For more than a decade far-seeing men in industry
and in government have sought constructive modifica-

m

tion of the anti-trust laws which would preserve the
substance, if not the traditional form, of the protection
through public sanctions and supervision of reasonable
agreements in industry and commerce. But only the
universal distress of a prolonged depression, which was
witnessing the gradual destruction of the nation's
wealth and the ])eople's savings, has converted that
l)olicy into public action. That the business world has
i)ecn prompt to resjmnd as best it could to the oppor-
tunity thus created is manifest in the fact that already
nearly 60 i)er cent, of industry is under pernument code.
Another 20 jier cent, probably will be under code within
the next few weeks, and the remainder as promptly as
reasonably representative and effective organizations
can be established in those industries or industrial
groups which are presently without satisfactory or-
ganization.

But the i)roblems of trade associations and their
code authorities have only begun. The most important
and the difficult problems lie ahead in the field of indus-
trial code administration. Associations vested with
resi)onsibiHties for code administration must develop,
if they do not already have, reasonable facilities for
fact finding, investigations, inspections, audits, educa-
tion of members of industry, provision for adjustment
and arbitration of complaints, and the adjudication of
appeals. lender many of the codes, industries must
develop standard methods and classifications of cost
accounting, and methods and forms of statistical re-
])ort. The activities of code government into which in-
dustriail organiza,tions have been suddenly plunged
include legislative, executive and judicial functions.
It is not to be expected that the trade associations will
have uniform or universal success in meeting these new
obligations. It is rather to be expected that both the
trade associations and the National Recovery Adminis-
tration will join in the continuing and hopeful effort of
improving tlie efficiency and extending the facilities of
the American trade associations and their code author-
ities.

Organization of Code Administrations

Broadly speaking, there are two divisions of code
administration:

F'irst: Deliberate and orderly planning of indus-
try, relying upon industry education and upon the de-
sire of the vast majority of competitors to deal fairly
among themselves and with those dependent upon them
for employment.

Second: The so called ^^administration of com-
pliance*," based upon complaints of violation of codes
or of industrial disputes arising thereunder.

The first is constructive and relates to all industry
members. The second is remedial and, in general, re-
lates to the ])athological fringe in each industry which
is not content to deal fairly with fair-dealing competi-
tors or with labor or with the public, but seeks oppor-
tunity for sj)ecial and often unfair advantage. The
administration of conq)liance under codes of fair com-
petition may be generally divided into three classes,
including:

First : Complaints of non-observance or prescribed
wages and hours of labor, or other labor provisions ;

Th€ Tobacco World

Copyright, 1»33. H. J. Keyuoias Tobacco Company

Sfeacfy Smokers fum to Came/s

You've often seen his name and picture
in the papers— Jaffee, the city-bred
boy from the U. S. A. who beat the
best Olympic skaters that Europe had
to offer, and became the skating cham-
pion of the world! Speaking of speed
skating and cigarettes, Jaffee says:
"It takes healthy nerves and plenty of
wind to be an Olympic skating cham-
pion. I find that Camels, because of

their costlier tobaccos, are mild and
likable in taste. And, what is even
more important to a champion athlete,
they never upset the nerves."

Change to Camels and note the
difference in your nerves... in the
pleasure you get from smoking !
Camels are milder. . .have a better
taste. They never upset your nerves.
Begin today!

IT IS MORE FUN TO KNOW

Camels are made from finer, MORE EXPENSIVE
tobaccos than any other popular brand.

HOW ARE
YOUR NERVES?

TRY THIS TEST

CAMEL'S

COSTLIER

TOBACCOS

Draw a line 20 inches long on the edge
of a newspaper. Stick a straight pin in
the exact center. Place a forefinger on
either side of the pin. Close your eyes
. . . try to measure off quickly the dis-
tances by moving both hands at the
same time. Have a watcher stop you
when you reach the edge. See if both
your fingers have moved the same dis-
tance. Most people try this at least six
times before both hands come out evenly.

Franb Crilley (Camtl •mofcer). iamoua

deep'tea diver, completed the test

on hia tecond try.

NEVER GET ON
YOUR NERVES

NEVER TIRE

YOUR TASTE

Jmmary 15, igj4

n

Second: Trade practice complaints;

Third: Complaints involving jurisdiction and
often competitive controversies between industries and
trades.

But the greatest opportunity for associations is in
that development and administration of industry which
for lack of better phrase, I term ''industry planning,''
with all that it implies in industry stabilization, bal-
ance of production and consumption, security of em-
ployment, avoidance of preventable wastes, encourage-
ment to technological advance and improvement (where
improvement is vastly needed) in the processes of mar-
keting and distribution.

An Experiment Becomes a Demonstration

Code government under the National Recovery
Administration has been described as an experiment.
But it is more than that. It is fast becoming a demon-
stration. Those who believe that nothing ought ever
to be tried for the first time will, of course, find no good
in this undertaking. Those, however, who believe that
the uncontrolled competitive process in modern busi-
ness is needlessly harsh on employer and employee
alike, that this harshness is not compensated by com-
mensurate public benefits, and that it can be tempered
by the establishment of reasonable controls under pub-
lic sanctions, will find good in the act. Those w^lio
believe, as I do, in the fundamental capacity of Ameri-
can industry for intelligent courageous and honorable
self-regulation will find in the act much good, much
promise and much hope.

The National Recovery experiment is, itself, not
a cure-all. It is seeking, however, to do more than re-
lieve the symptoms of the depression. It is seeking
to remove causes. The extent to which it succeeds is,
perhaps, now dependent largely upon government, but
ultimately will be dependent upon industry, on trade
associations and their code authorities. It already
has had the visible effect of inspiring more men to do
their thinking for themselves rather than as hereto-
fore buying it ready made. Those of us with large
industry responsibilities who are close enough to in-
dustryto understand its facts and problems; and yet
far enough away to view them in a fair perspective of
valid public interests, are not so much concerned
whether the National Recovery undertaking fits the
economic textbooks as whether and how it can best be
made to work. The plan of industrial self-regulation
under the Recovery Act affords the greatest potential
chance in our national history for a combination of
sound industrial programs and right persons and right
attitudes to make them work. That is the problem for

which industry and trade associations will supply the
solution.

Opportunity and Obligations of Associations

Perhaps I can define the opportunity and the obli-
gation imposed upon associations no more clearly than
in the language in which six months ago I submitted
to the Lumber and Timber Products Industries the pro-
posed Code of Fair Competition, subsequently ap-
proved by the President, under which these industries
today are operating:

**The National Industrial Recovery Act offers to
the forest products industries the most promising op-
portunity yet afforded, — or likely to be afforded, —
for orderly and effective self-government. It is an
emergency plan. If it works it will continue. But it
is much more. What is going on in America, as I view
it, is a gigantic struggle between socialism and regu-
lated individualism. Uncontrolled individualism as
manifested in the past decade has failed. If regulated
individualism likewise fails the obvious alternative is
socialism in some form, with its supplanting of indi-
vidual initiatives and its suppression of individual
rights.

* * There is more at stake than that. I do not believe
that regulated individualism will fail. If it fails it
w^ill be because direct government regulation, which
ultimately is necessarily political, will have supplanted
industrial self-regulation. The National Industrial
Recovery Act gives industry not only the opportunity
for self-regulation but, w^hat is more important, the
enforceable means of making it effective. No great
industry is acting w^isely which does not promptly re-
spond to the Nation's challenge or which does not delib-
erately, courageously and in good faith seek to estab-
lish in this country the right, the effectiv^eness, and the
public dependability of industrial self-government.

**If we keep our heads, if we don't try to run before
we walk nor permit others to persuade us to do so ; if
we don't expect too much; if we sturdily withstand
the stampede of bogies and hobgoblins; if we do our
part courageously; and if we seek for ourselves only
the same consideration that we could accord to others,
these things will work out all right.

**0f that I am confident. A great opportunity
confronts American industry, — and a solemn duty.
Upon its outcome depends the livelihood of millions of
people ; and the opportunity to prosper, of every indus-
try. It is a task for honorable men. Statesmanship
is finding out which w^ay God Almighty is going and
then getting things out of His way."

Accepting Gift Cigars A Criminal Offense

The gift of $50 boxes of cigars to employees of our
Federal Government during the Christmas season
caused Ewing Y. Mitchell, Assistant Secretary of Com-
merce, to return his gift box to the donor and also to
issue an order to the members of his department to do
likewise.

**I do not think it good practice," Mr. Mitchell in-
formed the donors, **for a Government official or em-
ployee to accept gifts, even of small value, from those
with whom he has business relations or with whom he
may have business relations. ' '

In his order Mr. Mitchell stated that such gifts
were made to ' * influence favorable action by those who
receive them and that such object is, to a greater or less

degree, obtained in a large percentage of the cases."

**I certainly would not have received the cigars,"
Mr. Mitchell asserted, **had I been in a private posi-
tion. I regard the matter as extremely important nl
though the present instance may not seem of large
proportion. These gratuities generally are not gifts
through virtue of friendship and their purpose is to
influence the recipient."

^fr. Mitchell's order said it was a criminal offense
for any Go%^ernment w^orker to accept anything de-
signed to influence his decision on any question. Such
a recipient may be fined three times the value of the
gift, and sentenced to prison for three years.

TA# TiOfOcco World

mOM JCY pi\^S

... by folks who
certainly ought to know
how to make pipe to-
bacco. They ask you to
try Granger.

A »en»ible package
10 cents

-the tobacco that's MADE FOR PIPES

• 1H>.

ft Ifms ToMcoo Oft.

January 15, 1934

f.f

HIbAt)El2i>MIA.

Bayuk Phillies Under Arctic Ice

X EXHIBITIOX in one of the disi)lay windows
in the reception room at Bayuk headiiuarters
is a tin of twenty-five Phillies which was car-
ried across the Atlantic Ocean to the Arctic
Ocean, under the Arctic ice and hack to Berjjen, Xor-
way, on board the "Xautilus, " the submarine used by
the \Vilkins-p]llsworth Trans-Arctic Submarine Expe-
dition. As i)art of the dis])lay there is an aflidavit cer-
tifvin": to that fact, sii^ned bv Hubert Wilkins, com-
mander of the expedition.

Jersey City Tobacco Co. is meetin^u' with pro-
notinced success in its jiromotion canipaiirn on Bayuk
products, assisted by Bayuk Salesman C. W. Wright.

Territorial Manager J>. W. Burnside is en route
to Pittsburgh to assist the X. Rice Cigar Co. in spread-
ing the gospel of Bayuk Phillies in that sector.

Better than ever Bayuk Phillies are progressing in
Buffalo, where the distributor, Kearney-Lehmann Co.,
opened the Xew Year with a drive, aided by Territorial
Manager J. P. Given and his assistant, E. T. ClitTord.

In addition to Harry S. Rothschild, president; A.
Jos. Newman, vice-i)resident in charge of sales; Harry
Wurman, vice-president in charge of manufacturing;
and Neal D. Ivey, advertising counsel, as noted in the
last issue of The Tobacco World, addresses at the
annual Bayuk sales convention were made by Samuel
Bayuk, H. L. Hirst and Louis Kramer.

Present from the sales department were Joseph L.
Sims, B. W. Burnside, E. C. MacAllister, G. C. Munson,
Leo M. Tighe, V. B. Muller, Rov Barkman. John J.
Snvder, G. L. Branzell, C. L. Stetfens, A. C. Roy, C. 0.
McClure, Floyd Xagell, J. P. Given, H. D. Soyster,
Roy D. Harris, J. linger, P. T. Morris, Harry Catlin,
Joseph H. Floersheimer and Charles Cox, as well as
Branch Managers P^red Brown, Abe Brown, V. G,
Sheller, E. Sharrock, John T. Rynn, John P. Sweenev
and M. F. Westfall.

David F. Morris, associated with Charlie Bond as
tobacco agent for the Philippine Government, at 15
William Street, New York City, was in town last week
with glowing reports as to the demand for Manila
cigars throughout the country, and is highly optimistic
as to the outlook for 1934. Dave was quite elated about
the increase in Manila cigar imports for Xovember and
believes that the December figures when released w^ill
disclose another 50 per cent, increase over the same
month of the previous year.

Trade Notes

Abe Caro, Optimo ambassador, was in town last
week conferring with the local distributors on plans for
increased sales for 1934,

The G. H. P. Cigar Co. is working steadily in order
to keep the demand supplied for their VA Producto and
La Azora, following a splendid volume of orders for
the holiday season which exceeded their expectations.

The Royalist factory, on North Second Street, is
experiencing a splendid demand for their brand follow-
ing the holiday season, which has kept the factory run-
ning with practically no shutdown right through the
usual first-of-the-vear lull.

Gus Lorber, factory representative for Geo. Ziffer-
blatt & Co., manufacturers of the Habanello brand, who
makes his hea(l«iuarters in Cleveland, Ohio, was a vis-
itor at factory headcjuarters last week conferring with
Mr. ZitTerblatt on plans for 1934, which they expect to
top 1933 by a wide margin.

John Wagner & Sons, local importers and distrib-
utors, 233 Dock Street, report demand holding up re-
markably w^ell on their brands following the holiday
season. In fact, orders continue to come in in such
volume that they haven't been able to realize that the
holidav rush is over.

W. L. Fenton, representing the Little Cigar De-
partment of the P. Lorillard Co. in this territory, is
always **on his toes" and has a splendid distribution
and sale of his products here. Mr. Fenton reports that
business is good and looks forward to 1934 with every
expectation of it being very much better than 1933.

James Heaney, representing the Awerlean Cigar
Company, was in town last week, promoting the distri-
l)ution and sale of Antonio y Cleopatra cigars through-
out Philadelphia territory. Yahn & McDonnell Cigars
are the local distributors of this brand and they report

a good demand for this brand.

The Tobacco World

BAYUK BULLETIN

Wf DOOUtnUIT

VOLUME II.

JANUARY 15, 1934

NUMBER 1

PHULO FAX MEMOIRS OF ALEX SMART

(The Retailer's Friend)

SAYS

Well, how many of
those New Year Resolu-
tions are we keeping so
far? Stick to it, fellows
. . . the first eleven
months are the hardest!

Super Salesman Solves
Distribution Problem

Don't forget . . . Christmas wraps
oflF all cigars. Don't keep your l/40ths
until next July . . . sell 'em now . . .
you can buy in July for July. Maybe
the buyer of a l/40th Christmas
wrapt cigars will buy another box
now . . . put up a sales talk, you
progressive retailers, and at least try
to sell 'em. — o —

Mr. Dealer, did your inventory
show some sleepy movers ... a few
dead items . . . some products which
won't improve with age? Put the
skids under them right NOW and get
rid of 'em! — o —

When are you figuring on getting
your 1934 increases, Mr. Salesman?
Last three months of 1934? Didja
ever tackle getting the big increases
the FIRST THREE MONTHS and
then if you have to coast a little
(and you shouldn't) do it the last
three months? — o —

Are you a salesman to your 482
accounts or are you Sales Manager of
482 accounts for the Products you
sell? — o—

Don't fear competitive brands but
respect competitive brands . . . don't
knock competitive brands . . , don't
be too solicitous of how competitive
brands are selling . . . you've got a
man's-size job looking after the health
of your own brands.

J. O. K. inquires, "I certainly hope
there'll be an increase in consumption
of cigars in 1934. What do you think,
Phil?" Answer: If all we folks in
the cigar game do is to HOPE for
bigger cigar consumption, there won't
be any , . . let's go out and do our
bit to INCREASE cigar consumption.
We can do it . . . BOOST cigars,
but set a good example by SMOKING
CIGARS YOURSELF!

Alex Smart, like all great generals,
can obey orders on occasion as well as
issue them. In his preceding install-
ment Alex described how the boss
instructed him to "see each and every
one of these seven accounts," and
how Alex followed instructions to the
letter. In this chapter we again learn
the truth of the old adage: "There's
no pleasing some people," and hear
for the first time of the Smart Plan
for obtaining distributioju

The jobber who is going to make
the best showing in his business in
1934 is the iobber who found out the
most about his business in 1933 — and
wasn't afraid to face facts.

K. O. G. writes, "Is there any pos-
sible way of my ascertaining if I got
my share of the cigar sales in my ter-
ritory last year? I mean what per
cent of the total per cent of total
cigar sales did I get? Can you tell
me?" Answer: Where have you been
the last couple of years, B. O. G.?
Sure you can . . . will answer by
mail. — 0 —

Yours truly wants to heartily thank
each and every one who sent him a
Christmas or New Year Card. F^el-
lows, I sure am grateful for your
expressions of appreciation of my
humble efforts.

D.ai.

•^M»riai«,| tritA BAYUK aCARS, INC., PMkt'
^**phU*-.-,Makmrt of /inm cigart atoM J097

"Well, Mr. Smart, how did you find
things?" was the greeting from my
Head Salesman Boss.

"Great," replied I. "I'm going to
like that territory . . . good hotels
and not tiresome train jumps."

"How were the customers' stocks
. . . how did you find business . . .
let's look over your orders," said the
H. S. B.

"Orders — Orders — what Orders? I
didn't get any orders," came back I.
"You instructed me to see each and
every one of the seven accounts . . .
I caught each and every one in and
saw each and every one. I followed
instructions . . . you said your firm
wanted business . . . that's natural
but you didn't instruct me to get
orders . . . you said see the cus-
tomers . . . you never murmured a
word about selling the customers."

And then he remarked, "I guess
I'm wrong, Mr. Smart . . . but I was
right when I said you were a man in
a million. Your brain is notty ... it
has, in fact, two *nots' in it . . .
it's not big enough and what there is
of it is not used enough. What reason
shall I state for accepting your resig-
nation?"

Cripes . . . one minute T have a

{'ob with him and the next minute
haven't and the next second, he asks
me why. And he told me, before he
seduced me into going with him, that
maybe after a week or so, he'd recom-
mend me for a promotion to Assis-
tant Salesmanager. How I had been
tricked! But, c^uickly, I saw the inner
workings of his plot ... I was too
smart for him . . . with me out of
the way, he'd work for that job him-
self. Well, he could work for it — I
wouldn't. Do you blame me for telling
him I wouldn't resign but that I'd
quit? And quit I did!

You CanH Down a Good Man

You will recall that when I first
decided to benefit some manufacturer
by consenting to be employed by him
that I was going to write quite a few
of the manufacturers and when vir-
tually all had hastened to express
their happiness at opportunity to get
me, to pick out the most advantageous
oflfer ... I was switched from that
policy by reason of being practically
shanghaied into going with the firm
whose Head Salesman I met at the
hotel. Well, now I intended to adopt
my first plan and so I prepared a let-
ter and had copies of it run off on the

typewriter and mailed a copy to about
10 manufacturers, retaining the orig-
inal letter for my own record so that
I would have knowledge of what I
said in the copy. I addressed the
President of each Company and not
the General Sales Manager, as the lat-
ter guy might not want me with his
Company knowing that he'd have real
competition to hold his own job if his
firm got hooked with me.

My letters were very brief as they
should have been ... I admitted that
I was a salesman . . . salary and ex-
penses desired and that I would go
anywhere. I considered it a waste of
time to go into details as to my age;
years of experience; why I thought I
could sell the specific products of each
manufacturer to whom I wrote, or my
willingness to permit my salary to be
set after I demonstrated my value as
a business getter. I figured that if I
was ready to put up my time against
a manufacturer's money, that was a
50-50 break. If I had confidence in
any manufacturer, he had to have
confidence in me right from the start
... if we didn't stay together he lost
his money and I lost my time, which
is my money. Right?

Will believe to my dying day that I
must have mis-directed most of the
letters and forgot to put a return ad-
dress on, because I only received two
replies. But fate is always good to
smart people and these tw^o letters
came from the very two firms whom I
wanted to afford a connection with me.

DON'T OVERLOOK
THE GALS

A wide-awake Mid-west cigar mer-
chant reports good sales of five-packs
to women. Oh no, the gals aren't
taking to cigars; they buy 'em for
hubby — or the boy friend, perhaps.

When Mrs. Jones comes in for a
package of her favorite cigarettes our
wide-awake merchant flashes a five-
pack on her. "Here's a neat little pack
of five of Mr. Jones' favorite cigars.
Wouldn't you like to surprise him
with one?" Often Mrs. Jones becomes
quite a steady purchaser.

Or perhaps he has a new brand to
introduce. The selling line is a little
different. "Mrs. Jones, here's a new
cigar I'd like Mr. Jones to try. 1
think he'll like it. It comes in this-
handy little pocket case for only a
quarter. Would you . . .?" Often
Mrs. Jones would. And quite fre-
quently Mr. Jones comes in for some
more of the same.

CHRISTMAS LESS THAN
12 MONTHS OFF

Three hundred-odd days from now
it will be Christmas again. Father's
Day is only six months away. Memo-
rial Day, according to our almanac,
comes on May 30th. Labor Day is set
for September's first Monday.

So what?

So, what are you doing about build-
ing a mailing list to take full advan-
tage of the golden opportunities for
box sales offered by these holidays, as
well as birthdays and other festive
occasions? Now is the time to begin
noting down names and addresses,
favorite brands, "next-of-kin," birth-
days and other information about
your regular customers. A good mail-
ing list, like Rome, isn't built in a
day.

Very deliberately I analyzed each
firm from every personal angle . . .
finally agreed with myself to go with
one, and then tossed a coin for final
decision and hopped the rattler to
talk turkey with the other.

With a fast representation of how
good I was, spread on a little thick at
times to show how to build up a sales
talk, this manufacturer landed me on
his sales force. He was the whole
works in his organization. Told me
twice he had no General Sales Man-
ager ... no doubt with the purpose
in mind of holding that out as bait
for me to go with him.

Bow To Get Distribution

He requested me to go to a town
about 100 miles away and work with
his jobber's salesmen there for two
weeks. 'This jobber had just taken on
this manufacturer's line and had no
distribution. "Easy pickings," thought
I, "for if the jobber's salesmen are
any good at all. with mv ablp assist-
ance, we'll get distribution all right,
all right." , ,

Got into the town a little late on
Monday ... too late to go out with
jobber's mpn. arid 8pp»>^ part of day
chinning with the jobber on all the
topics under the sun. This jobber im-
pressed me as being pretty dumb
'cause after two or three hours of
smoking and talking he asked me what
firm I was with and what were my
plans. I coached him on how to put my
manufacturer's brand over and told
him that I trusted he had good sales-
(G>ntini4«i in next column)

BAYL'K BBANDS BUILD BUSINESS

Bavuk Philadelphia Perfecto
Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

men equal to the task, and that I
would go out with his men and ob-
serve if they really knew how to sell.
After telling him that in simple ABC
language, he still wanted to know
what I was there for . . . terrible the
thickness of some folks' cranium.

Put in a real full day next day with
one of his salesmen and left him about
2:30 P. M. to go back to the hotel to
write some letters to my firm. I had
the situation sized up properly in a
jiffy . . . what my brand needed was
some newspaper advertising. The
dealers were saying they had no call
for the brand but would buy if they
did have a call. Presto! Create the
call by advertising and then take
orders from the dealers.

In his next installment 'In-again-
out-again Alex" tells how the Boss
received his suggestions for a sure-
fire, double-action distribution plan. If
you have followed the Memoirs so far,
perhaps you can guess. If you haven't
been reading these illuminating essays,
your education has not only been
neglected; it's positively moth-eaten.
Let Alex Smart show you how a big
time modern 8upersa1*»R"»an doe«i it —
in his next chapter.— THE EDITORS.

Tom AUely Passes Away
HOMAS A. ALLELY, well-known cigarette and
tobacco salesman in this district, passed away
at his home, 131 Iladdon Avenue, Collings-
wood, X. J., on December 28th, following a
short illness. On December 17th Tom was domg some
electrical work in the basement of his home in pvopara-
tion for the holidav festivities when he received a slight
shock which cansed him to fall from the ladder, trac-
turino- his collarbone and ribs. Later septic poisoning
developed, which resulted in his untimely death.

Tom was district representative for the diristian
Peper Tobacco Co., St. Louis, at the time of his death,
and had been instrumental in o])taining s])lendid dis-
tribution and sale in eastern Pennsylvania, southern
New .Jersey, Delaware, :Maryland, District ot Columbia
and Vir<ania for Listerine ci-arettes, AVellington and
Del Monle smoking tobacco, and the other fine products
of the Christian Peper Co.

P^arlv in Tom's business career he had been associ-
ated with the Falk Tol)acco Company, later with the
Tobacco Products Corp., and still hiter with the Union

Tobicco V o

Tom was one of the best liked salesmen m this ter-
ritory and had a host of friends who esteemed him
hii?hly for his fine sense of fairness in all his business
reTations, and he will be sadly missed by all who knew
him. He was active in the civic atfairs of his home
town and was the founder and past president of the
Crescent Republican Cliil) there. He was a member of
Apollo Lod-e, F. and A. M., of Philadeliihia, the Tall
Cedars of Lebanon, the Elks, and the Tobacco Sales-
men's Association.

Funeral services were held on January 2d Irom
his late residence in Collingswood, with interment in
Evergreen Cemetery. He was fifty-five years old.
Surviving? him are his widow, Helen; one son, Harold;
two brothers and two sisters.

Kentucky Markets Reopen and Close

Governor p]hringhaus, of North Carolina, declared
the burlev market holiday at an end on January 7tli,
following* the close of the markets early in December
because of dissatisfaction over prices obtained, and the
markets reopened on Monday, January 8th, but dissat-
isfaction was immediately expressed as to the prices
again prevailing and markets in Lexington, Ky., w^ere
promptly closed again.

First sales at Lexington indicated a price trend of
around $12 a hundred pounds, practically the same as
in December, and the minimum price figure set in the
burlev marketing agreement signed the ])revious week.

At Richmond prices of around $12.50 to $13 were
indicated and growers who expressed themselves
seemed satisfied. Those at Carrollton shouted dowTi
the auctions before a definite price trend could be

learned.

An average price of 11 cents a pound was obtained
for tobacco sold between 9 A. M. and 1 P. M. on the
hurley market at Abingdon. Prices were about the
samethere as when the market was closed in December.

A. Jacobson, well-known city salesman, has become
associated with Geo. Zifferblatt & Co., eflfective January
ist, and will promote the sale of Habanollos in Phila-
delphia in the future. Mr. Jacobson was formerly asso-
ciated with the Congress Cigar Company here, and
later with the firm of Frings Bros. Co.

r6

Under Billy Penn's Hat

Paul Brogan, vice-president of Yalin & McDonnell
Ci^-ars, has been confined to his home with a severe cold
for the past two weeks, but is expected to return to his
desk today.

William Lakin, factory representative of Waitt &
Bond, Inc., is spending some time among the retailers
here promoting the distribution and sale of the new
and improved Blackstone Junior and other sizes of the
Blackstone line, wutli good results. Yahn & McDonnell,
local distributors of the brand, report a fine increase
in demand for the Panatela Extra size, since the new
price of two-for-fifteen-cents was established a short
time ago.

Frank Flanigan, well-known cigar salesman, be-
came associated with M. Marsh & Son, Wheeling, \V.
Va., on January 1st as factory representative for that
firm in eastern Pennsylvania, except Philadelphia, and
is now making a tour of his territory boosting the dis-
tribution and sale of Marsh products with considerable
success. Frank is well known in this territory, having
been previously associated with the Mazer-Cressman
Cio'ar Co., the H. Sonimer Co., Inc., and Otto Eisenlohr
& Bros. For the past few months Mr. Flanigan had
been doing missionary work for the Marsh firm under
the direction of their sales representative, W. A.
Copple.

You can always depend on seeing an attractive and
attention-arresting window display in the M. J. Dalton
store windows at 617 Chestnut Street, and last week
John Flanigan, the genial manager of the stand, had a
figure of an English squire in the window rocking back
and forth and with a satisfied smile of contentment
patting a pocketful of those good Marcello cigars. This
display attracted a vast number of window-shoppers,
and according to the sales records a goodly number of
them found their way inside the store and bought Mar-

cellos.

Another attractive window at this stand last week
displayed the Mint Perfecto, another good local five-
cent brand, wuth good results.

**L'Africana" First Time on Air

^-IITII Rosa Ponselle and Giovanni Martinelli

I heading the cast, Meyerbeer's opera,

II *'L'Africana," was broadcast for the first
time from the Metropolitan Opera House over

combined coast-to-coast NBC red and blue networks
last Saturday. *'L'Africana," carried to the radio
audience in fts entirety, through the courtesy of the
American Tobacco Comjiany, was not performed by
the Metropolitan Opera Company last year and never
has been heard on the air from the famous opera house

before.

Tullio Serafin crmducted the opera, which was
sung in Italian, and Miltcm Cross and John B. Kennedy
filled the time between the acts with a narration of the
stage action and reminiscences of Metropolitan Opera
stars and events. Over eighty stations broadcast the
Metropolitan series sponsored by the makers of Lucky
Strike cigarettes.

The Tobacco World

News from Congress

(Cotiiimied from Page 6)

tmmi^.

substantial foreign markets if economic re ationships
wi h n the United States are to be brough mto easy
nance including tobacco and other agricultural prod-
ucts, mAch-mery, automobiles, etc., some of which might
continue to carry protection. . ^ , •

In the next grade would come those industries
which on the whole have shown the power to sustam
lliemselves against foreign competition witliout as-
sistTncey which employ large numbers o people and
which tmn out satisfactory products at reasonable
i.rices During the present emergency, however, these
industries would be protected against any marked in-
crease in foreign competition.

Continuing along this line, tl\e f ''sequent gradeg
would include those industries which are of succeed
iujrly less importance to the economic welfare ot the
cmmtrv, winding up with a group held to be not
adapted to the American economic environment.

On the basis of this classification, and possessed
of power to make changes in duties the President,
under the proposed program, could develop a long-
erm connnercial policy for the country, including the
negotiation of reciprocal agreements wjtli other J^-
ernments, recent attempts to do which have fa'l« of
success because of the inability to develop "trading
points."

Condossis Files Schedvde

Tiic Condossis Tobacco Co., New York City, which
was placed in involuntary bankruptcy some months
ago, filed a schedule of assets and liabilities in New
York City last week, disclosing liabilities of H),.i-» a'H
assets of $22.5,495, including stock in trade, patents and
copyrights of $150,000.

Program for Tobacco Growers

{Continued from page 8 )

1

vear including rental and benciit payments will be
iulv 50 I'er cent, larger than the returns last season,
iespite lie inferior .^inlity of th- 1!»:!:! crop m some
istruTts 0„ the same basis, it is expected liat tiie
otal returns for .lark air-cure.l tobac.o wdl be more
ha". 50 per cent, larger than the re urns 1- f^^ on^
The dark air-cure<l Ivpos include dreeii Ki\ei tine
Sucker and Virginia inn-cured. The fire-cured types
iliclude Kentucky an.! Tennessee dark lire-cured, Hen-
derson stemming and Viigima lire-cured

I have attempted to sketch in broad outlines the
situation generallv and with reference to particular
^^es of tobacco. • We believe that a «o"";l .P^f,^^^^^
has been evolved for tobacco growers Making these
fundamental adjustments ot supply .. to most
..ITective weapon in the han.ls ot tlie gro«e. « ' ^ «'
to achieve better prices. In the past, individual
g°rowerrhave been linable to make such ^^
until prices dedine.l to very low levels, as he r neigh-
bor would increase production to profit by their re-
duction.

January IS, 1934

MURIEL

CIGAR

Full
Size

5^

Long
Filler

Exceptional cigar
quality for a nickel

Other sizes

I.onftfellows
P«r(ccto» .
.\rUtocr«t».

3 (or 25^
2(or25<

Mfd. bv f- tOaiLLABD CO. t INC.

^

J

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

TF<;«;F a BLOCH. Wheeling, W. Va. ••■■••

CHARLES J FISENLOHR. Philadelphia. Pa. ..

^jl'uVtuCllTE^STElS. New York. N. Y

WILLIAM BEST. New York. N- ^ ..^....

MAJ. GEORGE W. HILL. New York. N.Y

GEORGE H HUMMELL. New Vork, N. Y

H H SH ELTON. Washington. D.C

WILLIAM T. REED. Richmond. Va.

HARVEY L. HIRST. Philadelphia. P*

ASA LEMLEIN, New York. N. Y.

CHARLES DUSHKIND. New York. N. Y. .......

^" Headquarters. 341 Madison Ave..

wS'"-5"!

Ex-President

;'.■.■;.'. v.. . . . .Vice- President

.di'airai'an Executive C^™.'"*?

Vice-Pres dent

Vice-President

Vice-President

Vice-Preaident

Vice- President

Treasurer

Gjunsel and Managing Director
New York City

ALLIED TOBACCO LEAGUE OF AMERICA ^^^^^^^^

W. D. SPALDING. Cincinnati. Ohio ■.■.'.".V.'.V.Vici-President

aiAS. B. WITTROCK. Cincinnati. Ohio Treasurer

5f,?rSgSE/BufeTJiL.ii;o.;io-/.:.v.:v./.:-.^^^^ s«r.ua

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City .V.'.VFirst Vice-Presider.»

MILTON RANCK. Lancaster. Pa i' !:.:... Second Vice-President

D. EMIL KLEIN. New York City ._ Secretary -Treasurer

LEE SAMUELS, New York City

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

President

First Vice-President

.......Second Vice President

Secretary -Treasurer

JACK A. MARTIN. Newark N. J. .;-

ALBERT FREEMAN. New York. N. Y

IRVEN M. MOSS. Trenton. N. J. •;;•■•■:•;;•;•
ABE BROWN. 180 Grumman Ave.. Newark. N. J.

NEW YORK CIGAR MANUFACTURERS' BOARD OF

TRADE

President

ASA LEMLEIN .V."'.;"". Vice-President

SAMUEL WASSERMAN

THE NATIONAL ASSOCIATIONS OF TOBACCO

DISTRIBUTORS

SA?)^A1^5'V4ni^nt;;ome;vst:.jv;.ey'city:N.j:::::

E ASBURY DAVIS. Baltimore. Md

E W HARRIS. Indianapolis. Ind.

JONATHAN VIPOND. Scranton. Pa

GEO B SCRAMBLING, Cleveland. Ohio

President

J^ecretary

Vice-President
Vice-President
.Vice-President
Treasurer

Establiihed 1886

"BEST OF THE BEST

99

M„»f.ctur,d b. ^ SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep W«3t, Florida

OUR HIGH-GRADE NON-EVAPORATING

^"^^"^ ^JliXSJcL n..Uow .-d .-ooth .n ch.r.ct..
and Impart a moat palatable flavor

FUVORS FOR SMOKING and CHEWING TOBACCO
FRIES & BRO.. 92 Reade Street. NewYorkJ

^yjfjiuiiiuiitijiiiim^jitvmj^^^

Classified Column

The rate foi this column t« three cef»U (3c.) a word, with
a minimum charge of seventy-five cent. (75c.) payable
strictly in advance.

:?»v.r?s\ir^f'»M:dl^!*5Mfi

^^if^ssrsSrm

^!gW51g^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

Tobacco Merchants' Association

Ti • 1 .• "D «^«,, 341 Madison Ave.

Registration Bureau, new york city

BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT
LOVE— Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168. Tampa,
Fla. Write them for particulars today.

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.
Registration, (see Note A),
Search, (see Note B),

Transfer,
Duplicate Certificate,

$5.00
1.00
2.00
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 inore
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 twf"*^
(20) titles, but less than thirty-one (31). an additional charge of Two DplUr.
($2 00) will be made and so an additional charge of One Dollar ($1.00) will D«
made for every ten (10) additional titles necessarily reported.

REGISTRATIONS

PYPECIGAR:— 46,284. For cigars. December 30, 1933. Alles &
Fisher, Inc., Boston, Mass.

CIGAPIPE: — 46,285. For cigars. December 30, 1933. Alles &
Fisher, Inc., Boston, Mass.

GLEN ROYAL:— 46,282. For cigars. Xovember 22, 1933. Consoli-
dated Lithe. Corp., Brooklyn, N. Y.

LUDGATE: — 46,283. For cigars. Xovember 22, 1933. Consoli-
dated Litho. Corp., Brooklyn, N. Y.

" RENEWAL REGISTRATION
EL PRANO:— 46.821. For cigars, cigarettes and tobacco. Re-
registration by Webster-Eisenlohr Inc., New York, N. Y., Decem-
ber 27, 1933. (Originally registered on February 9. 1900. by Otto
Eisenlohr & Bros. N. Y., predecessors to Webster-Eisenlohr Inc.)

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name

Street No.
P. O

.. , Stete

**What a welcome visitor
Thk Tobacco World
must be tp wholesalers and
retailers !

*'If they are only half as
interested in reading it as
we ourselves are, we're glad
our ad is in it regularly"—

says an advertiser.

^\^^\
T^^^^

FEBRUARY 1, 1934

VOLUME 54

Jnanl

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.
Generally the brands that are increasing their goodwill in this
present analytical market are packed in the ne^v improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

Phila., Pa.
Hanover, Pa^
Cincinnati, Ohio

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After all
"nothing satisfies like^
a good cigar ^

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

THE TOBACCO WORLD

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember rhat Regardlcfts of Pri

THE BEST CIGARS

ABM PACKIB in

WOODEN BOXES

Vol. 54

FEBRUARY 1. 1934

No. 3

The TOBACCO WORLD fuis signed the President's agreement and
is operating under NRA Code, gladly and wholeheartedly co-operating to
the fullest extent in the Administrations effort to promote industrial re-
covery.

VER hear the old classic tale of the battle that
was lost for the want of a horseslioe nail? Ever
know a man who neglected a cold that devel-
oped into fatal pneumonia? Ever watch a
business go slowly but surely to pot because its
Micawber-like owner w as always waiting for something
to turn up, instead of doing something to cure what
was wrong with the business! Those are some of the
questions we are prompted to ask cigar people after
we have done some thinking over the year recently
closed and a few of its immediate predecessors. If
you think those questions, as applied to the present
condition of the cigar business, are destructive of the
best interests of that business, go ahead and sue us,
as Eddie Cantor would say. But, if you take our
word for it that, lamenting the sad decline of an honor-
able industry, we are actuated solely by motives of
helpfulness, you will read along to discover what
thoughts could have inspired the questions in the
opening sentences of this editorial.

It was a remark of a cigar man that started the
train of thought. He said that the cigar business had
probably hit bottom because 1933 showed a decline of
only a little over 2 per cent, in cigars, as against a
drop of 16 or 17 per cent, in 1932. He blithely took
for granted that the curve would begin to bend in an
upward direction in 1934. When we asked what was
the basis of his contidence, his reply was that the cigar
business would automatically recover with business
generally. If that is the basis of his planning, we
know what is going to happen to his business. And
so do you.

Cigar men proved during last year that they can
do things when they are virtually compelled to do
them. One good job they did was tlie formulation of
their code, and a remarkably good job that was.
Another of their accomplishments was their record of
victories in legislation affecting tobacco.

^m^m.^ ^^^^^M mm^M^m

Cj) Ct3 [t3

P THEY had been forced to face a sudden
staggering drop in cigar consumption, maybe
they might have done something about that,
too. Here's what we are driving at. To be
sure, a decline of two and a fraction per cent, might
be construed as an encouraging sign, when it is com-
pared with greater decreases in preceding years. But
the cigar business would never get anywhere if every-
body in it followed that method of reasoning. The
inescapable fact is that during the last four years

cigar sales dropped off to the tune of 33 1/3 per cent.
And it is no defense when vou blame this on the de-
pression. Cigarettes decreased only about 9 per cent.
And there is a difference between the two situations.
The one-third decrease in cigar sales spelled a one-
third decrease in cigar smoking. But the less than
one-tenth decrease in machine-made cigarette sales
w^as accompanied by an actual increase in cigarette
smoking, the **roll your own" phenomenon more than
making up the discrepancy.

Perhaps it would have been a good thing for the
cigar business if this big slump had occurred at one
fell swoop, in one year, instead of being spread over
four years. The cigar people, who have shown that
they can beat a situation when they are forced to do
it, might then have done something, say in 1930, and
the business would be in a better condition right now.
As it is, they have allowed the loss of a horseshoe nail
to handicap them in their battle for sales. They have
allowed a cold to develop to the point where pneumonia
is threatened. Like Micawber, they are w^aiting for a
general business recovery to bring back their business
automatically.

Tow^ards the end of 1932 a movement w^as started
for the promotion of cigar smoking. By the early
spring a plan had been formulated, and the wide-
awake men in the industry quickly pledged to do their
part in its furtherance. But evidently there were not
enough wide-awake men in the cigar business, because
the program was never started. It is known that some
stayed out because they believed the big fellows would
be selfish and gather in the best results from the cam-
paign. Of course, they would be selfish. So would
the little fellow^s. That's business. But the foundation
of the selfishness of everyone, big and little, was laid
in the simple fact that each could profit f ro,m a revival
of cigar smoking. It is a matter of simple arithmetic
that, as the customers grow in any line of business,
there is a simultaneous improvement in the chance
for sales of every individual engaged in that business.

Some cigar men cried about the way smokers had
been converted to the cigarette. They are probably
the same men who try to sell their owti cigars while
smoking cigarettes. Ever see a felt hat manufacturer
wearing a derby I Do you think Lawrence Fisher,
president of Cadillac, drives a Chrysler! That spec-
tacle of a cigar man smoking a cigarette is an exhibi-
tion that should give anyone pause. If you ask us,
it is an example of the world's worst in business in-
telligence. Harsh words, me lads, but the present
status of the cigar business demands harsh words if
it is to be properly described.

Suppose the cigarette people did cut into the ranks
of the cigar smokers. By the same token, the **roll
your own" practice cut into theirs, but did you hear
them crying about it! They kept on after business
just the same, with the result that they showed a nice
gain (nearly 8 per cent.) last year over 1932, and they

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

are starting; out this year with the determination to
get back, if they can, to their all-time high mark, set
in 1930. And did the cigar people ever do anything
to create an entirely new market for their product as
the cigarette people^ did when they successfully added
all womenkind to the ranks of buyers and prospective
buyers ?

UR advice to the men in the cigar indus-
try is to do something for themselves, and
to do it right away. It would be a mortal sin
not to follow up the organization work made
necessary in the formulation of the code, by the opera-
tion of a definite plan to re-educate the public to the
truth that **a good cigar is a smoke."

How Many "Roll Your Own" Cigarettes?

No Accurate Figures, but Here's one Guess

MOKERS of the United States consumed be-
tween 40,000,000,000 and 55,000,000,000 roll-
vour-own cigarettes in the tiscal year ended
June 30, 1933, between two and one-half and
three times the number smoked in the twelve months
ended June 30, 1931, reports the Wall Street Journal.
Consumption of the hand-made cigarettes in the
latter vear was between 17,800,000,000 and 19,500,000,-
000 cigarettes. In the vear ended June 30, 1932, be-
tween 36,632,000,000 and 46,700,000,000 cigarettes were

smoked.

These figures are obtained by analysis of the Gov-
ernment's tax receipts on sales of cigarette paper
packages, together with sales of non-taxable packages,
those containing not more than twenty-five cigarette

papers.

Actual number of roll-your-own cigarettes con-
sumed cannot be gauged with entire accuracy because
the number of papers contained in the non-taxable
package varies between sixteen and twenty-four.

On the basis of the larger figure, however, one-
half as manv of the hand-made cigarettes were con-
sumed in the last fiscal year as the 109,000,000,000 ma-
chine-made cigarettes.

Several years ago there was little demand for the
smaller, non-taxable packages of papers, and a con-
siderable number of the larger, taxable packages were
sold; more recently, however, one or more of the
smaller packages have been given free with the to-
bacco used for this purpose as smokers began to seek
economy.

The number of non-taxable packages of papers
used jumped from 211,492,481 in the 1931 fiscal year
to 1,261,276,051 in the 1932 fiscal year, and to 1,915,-
575,912 in the last fiscal year.

On the basis of sixteen sheets to a package, the
1931 total of non-taxable packages provided wrapping
for 3,383,879,696 cigarettes; on the twenty-four sheet
basis it provided for 5,075,819,544 cigarettes.

Totals for the succeeding vears, on the same basis,
show 20,180,416,816 and 30,270,625,224 cigarettes re-
spectivelv in 1932 and 30,649,214,592 and 45,973,821,888
in 1933. "

To these totals must be added the ready-made
cigarette consumption represented by the sale of
papers in taxable books. In 1933 this amounted to
about nine billions, converting the $918,552.84 of gov-
ernment tax receipts from this source at the rate of
one hundred sheets for one cent. The Federal tax is
one-half cent for package of more than twenty-five,
but not more than fifty sheets; one cent on books of
more than fifty, but not more than one hundred sheets,
and one and one-half cents on books of more than one
one hundred sheets, but not more than one hundred
fifty sheets. The maximum number allowed under each

tax division usually is placed in the i)ackages making
the tax, in effect one cent for one hundred sheets. The
Government obtained $1,645,241.95 from this tax in
the 1932 year, and $1,441,826 in the preceding year.

The following table shows the number of cigarette
papers used in each of the last three fiscal years, with
the number of non-taxable books converted at the
maximum rate of twenty-four sheets per book, and tax
collections converted at the rate of one hundred sheets
per cent:

Year Taxable papers

1933 9,185,528,400

1932 16,452,419,500

1931 14,418,260,000

With upwards of 35,000,000,000 cigarettes ap-
parently diverted from the ready-made market into
the roll your own, the Federal Government suffered a
loss of some income which would otherwise have been
available to it.

Thirty-five billions of ready-made cigarettes would
mean revenue taxes of $105,000,000. These cigarettes
would have contained about 88,000,000 pounds of to-
bacco. The hand-made cigarettes contain less tobacco
than the machine-made smokes.

Estimating about one-fourth less tobacco used in
the roll-your-own cigarettes, the increase in consump-
tion in this field in 1933 over 1931 required about
66,000,000 pounds of tobacco.

Tax on this kind of tobacco is eighteen cents a
pound, so the apparent increase added only $11,880,000
to the Government's revenue, or $93,120,000 less than
would have been obtained had a similar increase taken
place in machine-made cigarette smoking.

This applies only to the 1933 increase over 1931.
The 1932 gain over the preceding year would have
shown somewhat similar results.

Cigarette manufacturers have, for some time,
maintained that the consumption of cigarettes has not
declined during the depression, although Government
statistics showed lower output for machine-made cigar-
ettes. This, the companies insisted, was due to diver-
sion into the roll-your-own smokes, a contention which
appears to be amply supported by statistics.

BROWN & WILLIAMSON HUMIDOR

The Brown & Williamson Tobacco Corporation is
offering smokers an attractive humidor box for cigar-
ettes. The box, designed by E. C. Sh>an, of Chicago, is
executed in green and black molded Textolite. Although
the General Electric Company has announced the de-
livery of some 100,000 of these boxes, the Brown &
Williamson Tobacco Corporation has estimated that
approximately one-quarter of a million boxes will be
distributed during the campaign.

Th€ Tobacco WoHd

LIGGETT & MYERS EARN $16,731,175

HP] Tiiggett & Myers Tobacco Company, manu-
facturers of Chesterfield cigarettes. Granger
smoking to])acco, and many other well-known
tobacco products, reports net income for the
vear 1933 of $16,731,175, a decrease of only $6,344,037
from the net of $23,075,212 earned in 1932. After
charges. Federal taxes and 7 per cent, preferred divi-
dends, this is equivalent to $4.84 a share (par $25) on
3,136,939 shares of combined common and common B
stocks, as compared with net of $23,075,212, or $6.85
a share, on the common and common B in 1932.

Since cigarettes sold for the greater part of the
year 1933 at $5.50 per thousand, which is generally
understood to be the point at which profits for the
manufacturer vanish, it is l)elii?ved that the Liggett &
]\lyers Company has enjoyed a substantial increase in
the sale of their cigarettes during the past year in
order to show such a substantial figure for net gain.

The 1933 report shows that during the year the
company purchased 8373 shares of its own preferred
stock at a cost of $1,124,263. This is the first time that
such purchases have been made.

Current assets of the company as of December 31,
1933, were $157,742,218, including United States Gov-
ernment and otlier securities amounting to $57,100,755,
and cash of $12,625,706, while current liabilities
amounted to $4,851,276. At the end of 1932 current
assets were $160,6()3,914, including $59,399,626 United
States Government and other securities, and cash of
$20,727,861, whih' current liabilities at that time were
$6,790,004.

Tjast week directors of the company declared the
regular quarterly dividend of $1 a share on the com-
mon and common B stocks and an extra dividend of
$1 a share on both chisses of stock, ])oth payable March
1st to stockholders of record February 15th. A similar
extra dividend has been paid at this time for the past
several years.

OLD GOLD'S NEW CAMPAIGN

CIGARETTE ADVERTISING

OST of those who have tried their hands at
cigarette advertising think it is the toughest
baby in the whole sales promotion family.
. .'. Until the psychologists give the cigar-
ette advertiser a new vocabulary he is badly stymied
in describing the merits of his particular brand. . . .
Wouldn't it be a revolting spectacle if Mr. Hill and
.Mr. Toms and Mr. Keynolds got snarled up in a (luarrel
over which of their cigarettes does us the least harmf

And so, until psychology furnishes a lot of new
words and ideas about taste, the cigarette makers must
continue to favor the good old Sock-in-the-Eye school
of advertising. They must be spectacular and repe-
titious. ... I sliouhl like to believe that the big
cigarette advertisers have begun to realize that so far
as the taste api)eal is concerned they are pretty much
all in the same boat.

For a long time their copy has indicated that their
main problem is the problem of Attention. They are
getting their best effects by associating their brands
with subjects prominent in public thought. If Mr.
llill is interested right now in convincing smokers that
his cigarette is popular with the best people, why
shouldn't he tie up with grand opera and symphonies!

Note. — The foregoing are extracts from an article,
*'ln Defense of Mr. Hill," by Allan P. Ames, in the
current issue of Printers* Ink.

FibrwMty i, 1934

AKE PLACID, Northern Lights, Lumber Jack,
Beaux Arts 1984, Everglades, Agua ('aliente,
Miami Beach — those were the titles of the ex-
hil)its in the recent fashion window display on
Okl Gold cigarettes in the Schulte store at Forty-second
Street and Fifth Avenue, New York City. The display
preceded the P. Lorillard (V)m])any's intensive cam-
yiaign of promotion on Old Golds scheduled for Feb-
ruary. Outstanding window and counter displays, a
new release in the newspapers and a change in the
radio program will be features of the campaign.

Dick Powell, young star of tlie musical films, has
been signed for three perfornumces as singing inaster-
of-ceremonies for the new^ Old Gold series with Ted
Fiorito's famous West Coast orchestra, opening
Wednesday, February 7, at 10 P. M., E. S. T., on a
nation wide WABC-Columbia network from San Fran-
cisco. It will l)e the first nation wide radio series for
Powell, whose sudden rise to picture fame in a cycle of
screen successes has been the talk of Hollywood lots.

Selected from 140 competitors in a series of audi-
tions, Kenneth Niles, youthful Californian, will an-
nounce the new series. He will succeed David Ross,
whose Commitments in the East prevented his going to
California for the weekly broadcasts.

BAYUK PHILLIES' BUSY PLANTS

^=^ H. SCHULTE has joined the sales force of
\fm Bayuk Cigars, Inc., and has been assigned to
the Wisconsin-Minnesota territory. He was
formerly with the company's Indianapolis
branch. . . . Fred Brown, manager, and thirty-three
members of his New York branch sales organization
visited the factory recently, attended an enthusiastic
sales meeting i)resided over by A. Jos. Newman, vice-
president in charge of sales, enjoyed luncheon in the
cafeteria, made a tour of the plant, and returned to
New York. An outsider who merely got a look at the
men remarked that the scintillating sales performance
of the New York branch was no longer any source of
wonder to liim. . . . ZoUa Bros. Co. is placing
Phillies everywhere throughout tlie Chicago territory,
in conjunction with Bayuk salesmen. . . . Eli Witt
Tobacco Co. is putting Bayuk Phillies in the choicest
dealer locations in West Palm Beach, Jacksonville,
Miami and Tampa, assisted by B. W. Burnside and
R. S. MacDermott, Bayuk salesmen. . . . H. Clyde
Davis, of the Old Dominion Tobacco Co., Bayuk dis-
tributor in tlie Norfolk territory, was a recent visitor
at headquartiis. . . . Orders! W^ell, the factories
are working on two shifts.

The General Cigar C/o., inc., has appointed the
J. Walter Thompson Co., New York, to handle all
advertising of its White Owl cigar. This agency has
been handling the radio advertising on White Owl.

Whelan Unit Contois Grocery Chain

Why

T WAS learned last week that working control
of the Acker, Merrall & Condit Conapany, New
York Citv, grocery chain store business, dat-
inL^ back *to 1820, and which was famous dur-
ing the pre-prohibition era as a leading purveyor ot
Ihf choicest grades of liquors and tobaccos has passed
to the United Profit-Sharing Corporation, the one cor-
poration saved to George J. AVhelan when he depres-
sion and the collapsing stock market ot 1929 earned
most of his enterprises into other hands.

Associated with Mr. Whelan and United Profit-
Sharing are prominent Wall Street interests, including
several individuals who are indirectly connected with
National Distillers Products Corporation, leading man-
ufacturers of spirits. Mr. Whelan wi 1 "o personal y
take an official position with Acker, Merrall & Condit,
but his close associate, AVilUam Baeder former $100,-
000 a year executive of United Cigar Stores Company
of America, which Mr. Whelan formed and developed
with the Duke-Ryan interests, will be vice-president
of the reformed distributing concern.

Work of Advisory Nature

Despite his advanced years and his ill b?a|th of
two vears ago, Mr. Whelan, who was invited into the
situation by the Wall Street group because ot his
knowledge of merchandising, is taking hold ot the
proiect with the same enthusiasm that marked his
activities when he built the United Cigar Stores and
operated it until 1911. Since that date he has never
held an official position with any company and his work
with Acker, Merrall & Condit will be of an advisory

^^ ^Some basis for the belief in Wall Street that Na-
tional Distillers Products Corporation interests are
concerned in the Whelan deal is seen in the fact that
two of the directors of Acker, Merrall & Condit have
their offices at Redmond & Co., Stock Exchange firai
of 48 Wall Street, which has been prominently identi-
fied with National Distillers and other liquor com-
panies. In addition, E. A. Correa, one of the partners
of the law firm of Breed, Abbott & Morgan, counsel for
National Distillers, has taken an interest in the chain
system. Llewellvn Powell, president of Acker, Merrall
& Condit, is located at the Redmond office, as is
Benjamin Gordon, a director. ^ ^^ . _, ..

The interest of United Profit-Sharing Corporation
in the chain svstem is believed to be between one-third
and one-half of the outstanding stock. Smaller blocks
of the stock are held by the individuals in the deal.

Chain to be Nation Wide

Mr Whelan was reticent when questioned yester-
dav for details, but said that the group would open
as'manv stores as could be efficiently operated. The
chain will be nation-wide in scope and it is his hope to
build a svstem which will rank in importance with
United Cigar Stores. The company will not be a
grocery chain, but will handle various other articles,
the emphasis to be placed on higli-grade liquors and
tobacco. It is possible the system will be divided into
four geographical divisions through the formation or
subsidiaries, for more efficient operation. Mr. Baeder,
who was the real estate executive in the United Cigar
Stores organization, is expected to supervise opera-
tions.

Mr. Whelan made it clear that his entrance into
the undertaking is because he believes this is the op-
portune time to launch a merchandising chain. As tar
as he is concerned, it will not be a Wall Street venture,
but a strict business operation in which he sees tlie
chance to make some money.

His success as a merchandiser may be gauged trom
the fact that about thirty years ago he was running a
little cigar stand in a hotel at Syracuse. He came to
New York and opened a little cigar store which on its
first day took in $3.47. This was the beginning of the
United Cigar Stores Corporation, which was destined
to do a gross annual business of $100,000,000.

Once Worth $10,000,000

His close associates were James B. Duke, whom
he regarded as the greatest business man wjio ever
lived, and Thomas F. Ryan. It was on the death ot
these two that the burden of too many business duties
began to weigh on the former cigar salesman. His
own personal fortune is believed to have been $10,000,-
000 at its best, and from this it dwindled to a very low
figure when the depression carried Umted Cigar Stores
and other concenis to receivership.

United Profit-Sharing Corporation was one ot the
smaller of the various Whelan enterprises, formed in
1914 to engage in the business of redeeming coupons,
certificates and other advertising devices. It has no
funded debt. What remains of the former Whelan for-
tune is principally invested in this company.

Pennsylvania Class A Production Increases

IGURES just released by the Internal Revenue
Bureau disclose that 74,118,245 cigars, made
to sell for five cents or less, were manufac-
tured in Eastern Pennsylvania during the year
1933. This is a decided increase over the previous
year, when the output was 56,737,090.

In Western Pennsylvania during 1933 there were
2 924 495 Class A cigars manufactured as compared
with 2,417,025 for the year 1932. . ^ ^ ^ ,

Class B cigars manufactured in Eastern Pennsyl-
vania during 1933 totaled 396,600, a decrease of 141,260
as compared with the previous year. Class C cigars
manufactured in 1933 were 8,836,220, as compared with
10,256,184 in 1932. These classes were not manufac-
tured in Western Pennsylvania in 1933.

Philip Morris Consolidated Report

Philip Morris Consolidated reports for 1933 net in-
come of $243,204 after expenses, taxes, etc., equivalent,
after dividend requirements on the 7 per cent, class A
stock, to thirty-two cents a share on 482,596 shares of
common stock. This compares with $415,173, or sixty-
eight cents a common share in 1932. Profit and loss
surplus on December 31st amounted to $3,369,414,
against $3,556,387 on December 31, 1932.

Own Sales Story

By WILLIAM BEST
Vice-President, General Cigar Company, Inc.

Scotten Dillon Dividend

Scotten Dillon increased the dividend on the $10
par common stock from thirty cents, paid November
15, 1933, to forty cents quarterly, payable February
15th to stockholders of record February 6th.

Th4 Tobacco World

N 1934 we plan to profit by a lesson which was
brought home to us in 1933. This lesson is
something which concerns not only cigars — it
seems to me— but low-priced, branded conven-
ience items of all sorts. With the small article, too
often all thought of the dealer's attitude toward the
product is overlooked. On what are called ** pick-up''
items, salesmen are too prone to talk nothing but de-
mand, demand, demand— leaving the dealer vaguely
thinking that there is some magic in it.

Worst of all, such selling leaves him vague as to
the quality of the article. No wonder the dealer has
•••ot into the salesman's habit of thinking, somewhat
fatalistically, ** Either it will sell, or it won't sell."
Seldom, if ever, will he stop to think, ** Either I must
do something to sell it, or it won't sell."

And a great many manufacturers have fallen into
the dealer's" and the salesman's way of thinking. The
final result of such thinking is just this: If a producer
«*oes out and spends a great deal of money advertising
an article and still it isn't in demand, his money is
wasted. This simply shows the absurdity of attempt-
ing to put the whole burden of selling upon the adver-
tising campaign. It takes respect for and belief in the
product, implanted in the dealer's mind, in order to
cash in on the advertising placed behind that product.
We have alwavs insisted that our salesmen believe
their own sales storv. Results show us whether the
salesmen believe or don't believe that the product has
the highest qualitv at its retail price, that it will show
the retailer a good profit, and that if it is properly dis-
played it will prove a real money maker for the dealer.
But, beginning this year, we are impressing salesmen—
throui^di talks and through messages planned to appear
in our house magazine— with the necessity of taking
time to promote the article itself to the dealer. Mailing
pieces may help to sell the dealer on the value and
merit of an article, but we believe the job can best be
done by the salesmen.

The salesman should build confidence by getting
the dealer to try the article himself. Dealers actually
welcome some selling knowledge— will remember it and
pass it on. The unportance of inducing dealers to sell
«iuality in an effort to back up advertising can hardly
be overemphasized.

The dealer is alwavs ready to lean on the adver-
tising, secure in the belief that the article will sell, be-
cause it is being advertised. The salesman comes to
his store well infornuMl as to advertising schedules,
oven equipped with tear sheets to sliow the dealer the
full weight of national efforts bfliind the brand. Also
he brings the dealer certain point of sale helps to tie
in witirthe published a])p«'al to consumers. But all
these are not enough. We have found that the article
will not sell as it should, unless the dealer is completely
informed and sold as to its inherent merit.

Suppose the dealer has a customer for a standard
popular five-cent cigar. That customer likes the cigar

February i, igs4

and smokes it regularly, until he goes into another
store, doesn't find it handy and switches to something
else. Perhaps he stays with this other brand and the
first dealer has lost a steady customer. Now, suppose
the first dealer had been thoroughly sold on this brand.
Noting an interested customer, he might say, ** That's a
real good cigar; 100 per cent, grade 'A' filler from vin-
tage crops, and a silky Sumatra wrapper. It's one of
my best sellers. ' '

It takes but a little information about a product
to implant in the customer's mind belief in its quality
and an appreciation in its real merit. And a customer
sold in that way on quality, becomes a quality, rather
than a price, buyer. He is likely to become a perma-
nent customer of the dealer who takes the pains to sell
him on specific quality facts.

That little difference is of paramount importance
with competition and the times what they are. Circum-
stances have given the smoker many real good five-cent
cigars. In fact, I don't believe there has ever before
be'cn a time when there were so many real good five-cent
ciirars on the market. As regards any number of small,
low-priced articles, I am convinced that a similar situa-
tion exists. . XI- J

Oftentimes there can be little difference in the ad-
vertising weight behind small articles sold under the
various brand names. The advantage, I am inclined
to believe, is likely to swing to those products which
make a real effort to improve behind-the-counter sell-
in.r Not onlv is it important to sell the dealer on the
merit of your product, it is also necessary to convince
him of the mutual benefits to be derived from proper

Display space is at a premium and dealers cannot
be bludgeoned into granting it. The dealer may have
something he wants to push. All right; let him pusli
it But it is possible to sell him on the wisdom of put-
tin^ nationally known brands on the counter beside it.
The well-known brand serves to advertise the brand the
dealer wants to push, puts it in a more attractive light,

and both get a break. ^.wu-*-

We have found by test that a brand like'* White
Owl" sells twice as well when prominently displayed
on lop of the case as when out of sight. A demonstra-
tion of this fact, beside the dealer's favored article, is
likely to make him wonder whether he is smart to put
our brand out of sight, where 50 per cent, of the people
who might buy it, won't buy. ^ , ^ , , ,., ,

\nd here is another thought that dealers are likely
to be open-minded about. If the wanted brand is out
of si«rht and if the customer hesitates to ask for it on a
nurchase involving a small sum, does the customer ac-
tuallv switch to soniething elsef Or does the customer
temporarilv accept a substitute and go next time to a
store where he can conveniently pick up what he wants?
We don't know. But the dealer doesn't know either.
The answer is that he may lose a customer, and that is
something that no right-minded dealer wants to do.

The dealer, it seems to me, has as much at slake
and stands to gain as nnich as the manufacturer
through more intelligent promotion of nuiny low-priced
articles. In the first place, no matter how small the
article, quality is and always will he a hig selling factor.
In the second place, it is appreciation of the inherent
merit of the individual i)roduct and ability to sell it on
that basis which distinguishes the merchant from the
storekeeper. In the third place — in fact, there are a
chain of benefits for tlie dealer — the merchant who does
a good selling job and wins steady customers on small
articles is the one whose advice carries weight on larger
purchases. It is just another case of *'look out for the
nickels and the dollars will take care of themselves."

Bigger sales must have better outlets, and the lat-
ter will liave to be made by giving more thought to the
dealer. At the seat of the trouble is the salesman who

thinks only of getting orders — the salesman who leans
too heavily on the power and glory of demand-creating
advertising and doesn't like to take time to sell the
merit of the product. It is he who starts the dealer
thinking along the same line. And if the advertising
doesn't do what salesnum and dealer think it should do,
there is no push behind the product at the counter.

This lack of logic in such an impasse is apparent
when we consider the indispula])le fact that a product
of real value will sell — that is, it can be sold — without
advertising. But, if the salesman and the dealer tell a
consistent story of quality, and if that story is true,
then the advertising carries that product along to big-
ger things. And the profitable job that can be done by
advertising still renuiins as big as you want to make it.

The foregoing is reprinted, with permission, because of its interest
to retail tc^acconists and salesmen who would not be likely to read it in
the January 25th issue of Frintcr's Ink, where it originally appeared.

Increased Payments for Burley Growers

X RESPONSE to numerous protests over the
prices being received for Burley tobacco, in-
cluding a joint resolution of the House and
Senate of the Kentucky (Jeneral Assembly
memorializing the Government to take some action to
relieve the situation, the Agricultural Adjustment Ad-
ministration has announced that growers who agree to
reduce acreage next year will receive increased ad-
justed payments if the average price i'or the current
season is below 12 cents.

Production adjustment contracts arc now being
signed by Burley tol)acco growers. Under these con-
tracts, **the first adjustment i)ayment'' is based on the
net sales value of tlie 1933 crop, (i rowers who agroe
to reduce their i)roduction 33':$ i)er cent, are, under the
terms of the contract, to receive a jiayment of at least
10 per cent, of the value of their 1933 crop, and growers
who agree to reduce 50 i)er cent, are to receive a ])ay-
ment of at least 15 per cent, of the net sales value of the
1933 crop.

J. B. Hut son, chief of the Tobacco Section, ])ointed
out that the first adjustment payments ])rovided for in
Section 2 of the contract aie ''minimum j)ayments''
and will be increased if the entire Burley crop averages
below 12 cents.

*'The rates of adjustment payment,'' Mr. Hut-
son said, **were based on a 12-cent jirice and are mini-
mmn pa^Tuents. If the average jn'ice for the current
season should be as low as 10 cents, the rate of the
adjustment pa^nnent for those growers who reduce 33%
per cent, will be increased from 10 ])er cent, of the net
sales value of the crop to 25 ])er cent, and the rate for
those who agree to reduce 50 jmm- cent, will be increased
from 15 per cent, to 30 ])er cent. If the market ])rice
should average 11 cents ])er jmund, tlie rates of the first
adjustment payment would be increased to somewhere
between the minimums provided in the contract and the
increase stipulated in the event of a lO-cent average."

The Tobacco Section has calculated that, with the
market prices ranging between a lO-cent and a 12-cent
level, the average return from the 19311 crop to growers
who reduce 50 per cent, next season will be between
14.25 cents and 15.05 cents for the entire crop and the
average return to the growers who reduce 33/h per cent,
will be between 13.35 and 13.80 cents. The lower
amount is calculated on a 10-cent average and the

i

higher amount on a 12-cent average and in each case
these represent minimum return on basis of the pres-
ent program. These advanced ret u ins would include
rental and adjustment i)ayiiients which would be dis-
tributed before the oi)ening of the next marketing
season.

Under the terms of the production adjustment con-
tract, these adjustment jmyments are to be made not
later than Se])tember 15th, jirovided that the proof of
performance by the ])roducer is submitted prior to
August 15, 1934. Uertitication of the contracts will be-
gin in July, Mr. Hutson said, and with ]iroi)er aid from
producers it is ho]>ed that the disbursal of the adjust-
ment payments will begin in September.

*'TIiis does not moan that this is a guaranty of a
specific ])rice to the individual grower," Mr. Hutson
emphasized. "Obviously the ordinary dilYerentials as
to trrade and other factors now prevail as thev have in
the past seasons. It is still up to the grower to choose
the best time to market his crop. But should any
drastic ine<piities result in ])rices during the movement
of the cro]), we shall consider equalization ])ayments to
participating growers to remedy such ineipiities.'*

Regardless of the j)rice lluct nations between a 10-
cent average and a 12-cent average, Mr. Hutson as-
serted that the ])ros])ects were such as to definitely
assure the Burley tobacco-] u'oducing areas that the
total value of the 19.').3 erop would be between 55 and
()0 million dollars. This would mean that growers
would receive a])proximately parity })rices for that por-
tion of their cro]) which moves annually into domestic
consumjition. The o]K'n market ]>riees would prevail
for the remainder of the crop. The income from the
1933 croji, including rental and adjustment payments
with resy)ect to j)urchasing jjower, will be greater, with
possibly three exceptions, than that of any crop of rec-
ord. During the j)ast two years, the gross value of the
Burley tobacco cro]) h;i^ Imcii M]>])roximately 39 million
dollars for each year.

The Tobacco Section is making an intensive study
of the prices of th<' Burley markets. The average on
all markets for the past week was near the 10-cent level,
according to an analysis of the reports received from
the sales supervisors on all the markets. The season's
average is slightly under 11 cents, the official estimates
reveal.

The Tobacco World

ARE YOU A

Those untidy habits

come from jangled nerves

It's bad enough to look untidy—
ill-groomed.

But if s twice as bad when you
think that those nervous habits
are a sign of jangled nerves ... a
friendly signal that says, "Find
out what's the matter."

So, if you catch yourself muss-
ing your hair, biting your nails,
chewing pencils — or suffering
from any other of those countless
little nervous habits —

Get enough sleep and fresh air
— find time for recreation. Make
Camels your cigarette. You can

cOi

/fow are \C\\ IP

*—•*—-- J I 1

•''Wright. 1D34, a j"^

smoke as many Camels as you
pl^ise, for Camel's costlier tobac-
cos never jangle your nerves.

COSTLIER TOBACCOS

Camels arc made from finer, MORE EXPENSIVE
TOBACCOS than any other popular brand of cigarettes!

THEY NEVER GET
ON YOUR NERVES!

Vliyr ly I CAMEL CARAVAN ftataring Clmn Cray'm CASA LOMA Orchmttra and other Hmadlinera Every Tueaday and
I UN t I n ! Thareday at 10 P. M. ,E.S.T.-9 P. M. . C. S. T. -8 P. M .M.S.T.-7 P. M. . P. S. T. , over WABC Columbia Network

February i, 1934

Under the terms of the marketing a«;reement with
the principal buyers of Burley tobacco the buyers are
committed to purchase at least 260 million pounds of
the current crop at an average price of not less than 12
cents per pound. The agreement also provides that
*'each contracting buyer shall ])urchase in the usual and
ordinary manner, except as to i)rices provided in the
agreement against the recpiirements of such contract-
ing buver as though this agreement were not in effect,
and shall not buy unduly of the high grades in order to
defeat the purpose of this agreement or concentrate its
purchases in anv geographical region."

An analvsis of the prices and quality of i)urchases
is now being made by the Tobacco Section to ascertain,
the manner in whichthe i)urchases have been made un-
der the marketing agreement. A i)reliminary study of
the situation, Mr. Hutson said, reveals that if the con-
tracting buvers are making their i)urchases under the
terms of the marketing agreement, other buyers in the
market not signatories to the agreement are paying
prices materially below those being paid l)y the con-
tracting buyers.

The signatories to the marketing agreement have
been asked" to provide data with respect to their pur-
chases and prices.

Under the terms of the marketing agreeinent it the
average price paid by any contracting buyer is less than
the agreed price, such buyer is required to pay to the
Secretary of Agriculture ''for each pound of Burley
tobacco so purchased by it the difference between the
average price so paid by it for all purchases and the
average price so required to be paid by such contract-
ing buyer.*'

A. A. A. PRODUCTION CAMPAIGNS

KOGRAMS of the Agricultural Adjustment
Administration to bring 1934 production of
basic agricultural commodities more nearly
into line with elTective demand are well under
way, a review of the status of these programs indi-
cated. Producers of cotton and tobacco are signing
agreements to reduce 1934 production. Wheat grow-
ers and producers of cigar type tobacco already have
signed such agreements and in return for making the
stipulated reductions, they are receiving adjustment
payments.

Sign-up campaigns for bringing 1934 production
more into line with consumption requirements are
under way for five kinds of tobacco. These are flue-
cured, Burley, fire-cured, dark air-cured, and Mary-
land. A program for cigar-leaf tobacco was inaug-
urated in 1933 and will be continued in 1934.

Preliminary reports from the flue-cured tobacco
region indicate that approximately 90 per cent, of the
growers already have signed agreements to reduce
their 1934 production. The sign-up campaign w^ill
continue for a time in order that every grower may
have an opportunity to sign agreements. Flue-cured
tobacco is grown in North Carolina, South Carolina,
Virginia, Georgia, and Florida. Growers who take
part in the program agree to reduce 1934 production
by 30 per cent, of their base. Rental and benefit pay-
ments to these growers wdll approximate $17,000,000.
The Burley tobacco sign-up campaign is about 60
per cent, completed. Reports indicate that growers
are signing agreements at a satisfactory rate. Growl-
ers pledge to reduce their 1934 production by 33 1-3
per cent, or 50 per cent, of their base. The Burley
program is being conducted in Kentucky, Tennessee,

10

North Carolina, Virginia, West Virginia, Ohio, and
Indiana. Rental and benefit payments to those grow-
ers who participate will approximate $15,000,000.

The fire-cured tobacco sign-up campaign now under
w^ay in Kentucky, Tennessee, and Virginia, is about 60
per cent, completed. Growers are signing agreements
to reduce 1934 production by 25 i)er cent, of theij base.
Particii)ating growers are expected to receive $1,700,000
in rental and benefit ])ayments.

Dark air-cured tobacco growers in Virginia, Ten-
nessee, Kentucky, and Indiana, are signing agreements
to reduce their 1934 ])roduction by 30 per cent, of their
base. Rental and benefit payments to co-operating
growers will approximate $715,000. The sign-up cam-
paign is a little less than half way through on account
of starting later than the other major tobacco sign-up

drives.

An adjustment program for producers of Mary-
land type of tobacco in Maryland has been announced
and the sign-up campaign is just getting under way.
The program seeks to reduce production chiefly of the
lower grades. Rental and adjustment payments to
participating growers w ill approximate $140,000.

Payments to growers wiio take part in tobacco ad-
justment programs so far have been made only to cigar-
leaf tobacco producers. Growers of the other kinds of
tobaccos for which programs are being put into elTect
will receive their payments in the near future as stipu-
lated under the terms of their agreements.

Up to January 23, payments to co-operating cigar-
leaf tobacco growers totaled $1,519,273. The payments
bv States were as follows : Connecticut, $183,384 ; Flor-
ida, $63,106; Georgia, $21,390; Illinois, $267; Indiana,
$1472; Massachusetts, $92,064; Minnesota, $12,011;
New Hampshire, $2288; New York, $23,223; Ohio,
$280,898 ; Pennsylvania, $431,315 ; Vermont, $2420 ; and
Wisconsin, $405,428.

"HEALTHY NERVES" CAMEL THEME

FFICE workers, salesmen, housewives, secre-
taries, motorists — smokers from every walk
in life—are brought face to face with cham-
pions and personalities of the athletic world
as they say ** double check" on the modern need for
healthy nerves. That, in essence, is the dramatic
theme' of the new Camel cigarette campaign just re-
leased by the R. J. Reynolds Tobacco Company. Ad-
vertisements will be dominating in space, and are
scheduled to appear frequently in a nation-w^ide cam-
paign so as to take full advantage of the responsive
new^s paper audience.

In a typical advertisement of the new series, Ed-
die Woods, the Ail-Around Champion Cowboy from
Idaho says: '*To have nerves that can take it, I smoke
only Camels," and Mrs. Phyllis L. Potter, housewife
of Montclair, New Jersey, asserts, ** Cowboys need
healthy nerves, and, believe me, so do housewives."
Mrs. Potter goes on to compliment Camels on their
mildness. **I can smoke Camels freely without a hint
of jumpy nerves," she says.

As in previous educational work dealing with the
** nerves" question, the makers of Camels continue to
lay emphasis upon the costlier tobaccos used in Camels,
stating prominently in every advertisement that
Camels are made from finer, more expensive tobaccos
than any other popular brand. That accounts for the
mildness of Camels and the Camel slogan — **They
never get on your nerves."

The Tobacco World

ALWAYS /^ Sine6t S'oSi

THE HEIGHT OF GOOD TASTE

nd in Giaarettes too — ^tute -ui &>er^^tAm^

'CO and Qi^XK the Gmter,Xeav€c

February i, 1934

it

Cigars and Cigarettes Increase in December

HE following comparative data of tax-paid
products, indicated by the monthly sales of
stamps, are issued by the Bureau. (Figures
for December, 19:33, are su])ject to revision un-

til published in the annual report):

-December —

Products
Cigars (large) :

Class A No.

Class B No.

Class C No.

Class D No.

Class E No.

1933

220,941,685

4,222,020

46,819,062

4,163,726

543,747

1932

189,934,980

3,898,207

55,465,964

3,897,355

939,479

Total 276,690,240 254,135,985

15,211,707

264,046

7,319,117,167

3,160,691

20,955,090

Cigars (small) No. 12,261,507

Cigarettes (large) ...No. 302,400

Cigarettes (small) ...No. 7,799,623,723

Snulf, nifd Lbs. 2,393,641

Tobacco, mfd Lbs. 19,292,241

Tax-paid products from Puerto Rico (not included
in above statement) were as follows:

— December —

Products
Cigars (large) :

Class A No.

Class B No.

Class C No.

Class D No.

1933

3,877,400

106,500

81,280

. . • • •

1932

3,843,225

15,000

96,30C

1,500

Total

4,065,180 3,956,025

Cigars (small) No.

Cigarettes (large) ...No.
Cigarettes (small) ..No.

30,000
140,000

300,000

40,000

320,340

Tax-paid products from the Philippines (not in-
cluded in above statement) were as follows:

— December —
Products 1933 1932

Cigars (large) :

Class A No.

Class B No.

Class C No.

Class D No.

Class E No. ... 300

15,891,485

10,983,280

12,837

47,873

9,614

25,508

100

Total . . .

• • •

15,914,036 11,056,961

Cigarettes (large) . . .No.
Cigarettes (small) ...No.
Tobacco, mfd Lbs.

200
114,260

1,104

211,920

24

Revenue Collections for December

Sources of revenue 1933

Cigars $781,112.44

Cigarettes 23,401,902.67

Snuff 430,855.44

Tobacco, chewing and

smoking 3,472,660.04

Cigarette papers and

tubes 84,440.79

Miscellaneous, r e 1 a t ing

to tobacco 222.01

li

1932
$756,648.71

21,960,082.23
568,924.35

3,772,242.88

72,337.99

2,361.52

Withdrawals for Past Decembers

1920
1921
1922
1923
1924
1925

506,126,135 1926

463,663,809 1927

561,041,853 1928

491,358,758 1929

511,276,573 1930

473,336,217 1931

464,575,489
393,006,532
411,910,434
410,862,907
349,635,250
304,531,411

Processing Tax Returns

Detail of collections from i)rocessing and related
taxes i)roclaimed bv the Secretary of Agriculture
under authoritv of the Agricultural Adjustment Act
(Public No. 10-73d Congress), approved May 12, 1933:

Total
from July 1,
Month of 1933 (Fiscal

Commodity December, 1933 Year 1934)

Tobacco, (tax etTective
(October 1, 1933) :
Processing taxes $2,742,672.18 $2,943,642.71

Import compensating

taxes 30,620.19

Floor tax, other than

retail dealers 72,866.83

Floor tax, retail deal-
ers 116,956.41

59,962.79

1,720,274.16

222,994.13

Total, tobacKJo $2,963,115.61 $4,946,873.79

PIPE CODE APPROVED

PPKOVAL of the Code of fair competition of
the Smoking Pipe Manufacturing Industry,
effective February 2, was given by Adminis-
trator Hugh S. Johnson on January 24. A
maximum week of forty hours is ])rovided, with full
exemption for employees in a managerial or executive
capacity who receive $35 or more i)er week, emergency
repair crews, outside salesmen, and highly skilled
workers when engaged in continuous processes. Office
cmplovees are jiermitted a maximum of 42 M* hours ])er
week;* and forty-eight hours per week is allowed for
shipping and packing room employees, engineers and

firemen.

The minimum wage is set at 35 cents per hour,
with a provision calling upon employers to increase
the wages of those receiving more than the minimum.

It is estimated that operation of the Code will give
employment to an additional 475 persons.

TOBACCO SALESMEN ELECT

Elections at the annual convention of the National
Board of Tobacco Salesmen's Associations, at the
Hotel Edison, New York, January 13 and 14, resulted
in the following being cliosen as oilicers for the ensuing
year: Abe Brown (Newark branch), president; Elmer
W. Bindley (Trenton branch), first vice-i)resident ; Joe
Freeman (New York branch), second vice-president;
Abe Blumberg (Baltimore branch), third vice-presi-
dent; Harrv Sternberg (Newark branch), secretary,
and Albert* Freeman (New York branch), treasurer.
The 1935 convention will be held in Atlantic City, N. J.

Th4 Tobacco World

Calendar Year Withdrawals for Consumption

Cigars :

Class A —

United States . .
Puerto Rico . . .
Philippine Is. . .

Cal. Yr. 1933

3,689,722,930

56,142,945

186,261,175

Total 3,932,127,050

+
+

Class B—
United States . .
Puerto Rico . . .
Philippine Is. . .

Total

30,838,309

3,135,750

196,944

+

— Decrease
-{-Increase
Quantity

199,182,880
13,853,790
12,294,435

197,623,525

21,187,602

2,944,750

501,198

Total All Classes-
United States . . 4,344,752,333
Puerto Rico ... 60,058,755
Philippine Is. . . 186,696,617

+

98,138,720
13,037,280
11,684,952

Grand Total 4,591,507,705 — 99,491,048

Little Cigars :

United States
Puerto Rico
Philippine Is.

Total ...

208,448,960
3,274,000

211,722,960

72,918,041
1,276,000

74,194,041

34,171,003 — 18,744,050

Class C—

United States .
Puerto Rico . .
Philippine Is. .

572,699,566
779,060
233,570

Cigarettes :

United States
Puerto Rico
Philippine Is.

111,763,441,149 + 8,177,552,283

3,415,600
1,476,490 +

687,440
9,443

266,231,368

2,125,040

71,250

Total 111,768,333,239 + 8,176,874,286

Total 573,712,196 — 268,427,658

Class D—
United States . .
Puerto Rico . . .
Philippine Is. . .

46,123,267 — 10,012,118
1,000 —
2,176 —

Large Cigarettes:
United States .
Puerto Rico . .
Philippine Is. .

2,869,885

805,000

8,137

+

691,213

252,000

2,917

3,200
1,700

Total

3,683,022 —

442,130

Total

46,126,443 — 10,017,018

Class E—
United States . .
Puerto Rico . . .
Philippine Is. . .

Total

5,368,261 -f
* '2J52 —

109,488

• • • • • • •

35,335

SnutT (lbs.)—

All U. S. ,,....

Tobacco Mfd. (lbs.)—

United States . .
Philippine Is. . .

36,326,152 —

85,852

304,902,282
169

7,370,767
372

5,371,013 +

74,153

Total 304,902,451 — 7,371,139

Review of Foreign Tobacco Markets

Cuba— During the year 1933 (Cuba's exports of to-
bacco and tobacco products were valued at $13,395,306,
a slight increase compared with 1932, wlien they
amounted to $12,926,270, states American Commercial
Attache Albert F. Nufer, in a report to the Tobacco
Division, Department of Commerce. In spite ot an
increase in value, however, the volume of exports, with
the exception of cigars, showed a sul)stantial deCiine.
This decline, it is noted, was apparently more than off-
set by the improved prices which i)revade(l tor Cuban
leaf tobacco during the greater part of 1!K}3.

Exports of tobacco and tobacco products during
December, 1933, were vahi«'d at $945,726 as against
$1,056,183 during the same month of 1932. Cigar ex-
ports during the month dropped sharply compared with
December last vear, due to the strike of Habana to-
bacco workers, \vhich lasted ahnost the entire month
and imralvzed work in most of the hirger cigar iac-
tories. While this strike has ])een settled temporarily,
the difficulties which caused it have not yet been defi-
nitely adjusted, and there is a possibility of further
labor troubles in the tobacco industry. , , .

Sumatra— According to a report made by Ameri-
can Vice Consul W. M. Chase and released by the To-

February i, 1934

bacco Division, Department of Commerce, twelve Su-
matra tobacco auctions had been originally scheduled
for 1933, nine in Amsterdam and three in Rotterdam.
Onlv ten, however— eight in Amsterdam and two m
Rotterdam— were actually held.

The crop turned out to be a definitely mediocre one.
The companies have not been able to show the full
elTect of economies etfected in the production ot the
1932 crop because of expenses incurred in repatriating
both European and coolie labor. Finally, due both to
the German Governmental decrees, etc., to encourage
the use of German grown tobacco in cigar production,
and to the decline of use of the cigar in the United
States, it is quite possible that the crop is not yet small
enou<di to be covered by present-day demands. Ihe
smaller demand situation will, nevertheless, be met to
a certain extent by the anticipated 10 per ^^"V,?^^ "^^^^
decrease in the size of the 1933 crop which will be mar-
keted in The Netherlands next year. ^

During the entire season, buyers to^ AmpTican ac-
count took onlv 8222 bales as compared with 18,83J
during the preceding year. Such a decline m American
purchases is calculated to have brought the Deli grow-

(Continued on Page 17)

r?

News From Congress

_ -AND

Federal

Departments

OXSIDERATIOX by the House of Kepresenta-
tives this month of the tax bill prepared by the
Ways and Cleans Committee is expected to
bring forth a demand for reduction of the to-
bacco levies. A double-barreled attack will i)robably
be directed at the present tobacco taxes, for the relief
of the cigar branch of the industry and to permit manu-
facturers of ten-cent cigarettes to compete more easily
with the higher-priced brands. The cigarette situation
was brought before the attention of the committee dur-
ing its recent hearings.

Two bills dealing with tobacco taxes have already
been introduced in Congress, and will probably be made
the basis of anv effort to secure relief.

*

Under a measure prepared by Representative
Chapman (Dem.) of Kentucky, the rates on cigars
would be $1.50 per lOlK) on cigars weighing not more
than three pounds, $4 on cigars selling for not more
than 5 cents each at retail, $6 when retailing at between
5 and 8 cents, $9 when retailing at between 8 and 15
cents, $12 when retailing at 15 to 20 cents, and $15
when retailing at more than 20 cents. The rates on
cigarettes would be $2 per 1000 when weighing not
more than three pounds, and $4.80 when heavier. The
rate on tobacco and snutT would be 12 cents per pound.

In the Senate a bill has been introduced bv Senator
Barkley (Dem.) of Kentucky, providing for rates of
50 cents per thousand on small cigars, $1 on cigars sell-
ing at not more than 5 cents, $2 when selling between 5
and 8 cents, $5 when selling between 8 and 15 cents,
$7.50 when selling between 15 and 20 cents, and $10
when selling in excess of 20 cents. The rate on ciga-
rettes would be $1.50 per 1000, with a tax of $5 on
cigarettes weighing more than three pounds. The tax
on tobacco and snuff would be reduced to 5 cents per
pound.

^^^^^K ab^X^B ^K^l^H

Cj3 CJ3 Ctl

ROPOSALS of President Roosevelt for a
$2,000,000,000 stabilization fund for use in con-
nection with the revaluation of the dollar are
seen in Washington as offering an opportunity
also for the indirect control by the Government of im-
ports of tobacco and other commodities, where the con-
dition of the domestic producers may demand it.

It is pointed out that if a **superbank" is in effect
thus established, the Government could exercise a con-
trol over exchange and by delaying or refusing grants
for foreign exchange, on the ground of public interest,
could compel the greater use of domestic products.

Exchange control measures adopted in foreign
countries in recent years, it is said, have served mate-
rially to reduce their imports.

14

From oup M^ashington Bureau 62ZAlbee Building

No immediate wide advance in the level of prices
is seen in the proposal to revalue the dollar at about
()0 cents, it being pointed out that for several months
the dollar has been heavily depreciated abroad without
any drastic change having occurred in domestic prices.

Ct3 Ct3 Ct3

LTHOUGH salaries paid by the codified indus-
tries to oflicials of their Code authorities are a
matter of indifference to officials of the Na-
tional Recovery Administration, the Govern-
ment plans to set an example of low salaries by limiting
the compensation of administration representatives on
the Code boards to probably $10 per day for such time
as they may actually be engaged, ])lus a maximum of $5
per day for expenses.

Announcement of the administration's policy with
respect to Code authority remuneration followed the
receipt of reports that a number of trades were consid-
ering high salaries for authority executives, in one in-
stance the amount being said to be in excess of $50,000
a year.

The question of salary, it was pointed out at the
administration, is one for adjustment solelv bv the in-
terested industries, so far as their mendjers of the Code
authorities are concerned, but the Government will con-
sider its representatives on the Code boards to bo
actuated by a desire to aid in the recovery movement
rather than bv motives of self-interest.

^^^^^^ ^^^3^_ a^^^^^

Cj3 [t] Cj3

ESTORATION of the two-cent rate of postage
on first class mail for other than locjil delivery
should await the improvement of business con-
ditions to a point where the increase in the vol-
ume of letters will offset the reduction in revenue that
would ensue, it is urged by Postmaster General Farley
in his annual report.

Unless action is taken bv Congress to continue the
three-cent rate the postage charge will automatically
return to two cents on July 1 next.

Defending his proposal for continuation of the
present rate, the Postmaster General reported that it
had resulted in an additional revenue of approximately
$75,000,000 during the fiscal year ended June 30 last.
As a result of the reduction of the local rate to two
cents last July, however, the additional revenue this
year is expected to be about $17,000,000 less.

Th€ Tobacco World

CIGARETTES' MAGAZINE INVESTMENTS

IX :^rANUFACTURERS of tobacco products
were included in the list of 150 leading na-
tional magazine advertisers of 1933, as re-
l)orted in National Advertising Records. The
fiiyures cover the amount invested by these advertisers
ill a list of seventy-nine national magazines— sixty-
eight monthlies and eleven weeklies and semi-monthlies.
It^dll be noted that all six of the tobacco advertisers
are manufacturers of cigarettes, to which the greater
part of the copy is devoted.

The report is not intended as a guide to the adver-
tising policies of the companies. An increase or de-
crease in magazine exi)enditure over the previous year
may mean merely a switch of a portion of a company's
advertising approi)riation from one type medium to

another.

Following is the roster of tobacco companies, ar-
ranged iu tlie order of their nuigazine expenditures :

1933

1932

$1,681,475

1,521,092

522,600

966,840

Reynolds Tobacco Co $2,247,109

American Tobacco Co 738,653

Axton-Fisher Tobacco Co 489,832

Liggett & ]\Iyers 444,715

Brown & Williamson Tobacco

Corp 280,310

P. Lorillard Co 132,300

The Re\Tiolds Tobacco Co. was one of twelve ad-
vertisers investing more than a million dollars for
magazine space in 1933. Each advertiser in the list of
150 spent more than $1(K),000.

280,373
129,848

Tobacco Prices Continue Low

Burley tobacco sales on the East Tennessee mar-
kets last week continued to average less than $12 per
hundred pounds, although sales continued in heavy

volume.

Sales reported on Thursday were: Greeneville,
488,994 pounds at $10.71 ; Morristown, 114,694 at $9.24;
Johnson City, 320,044 pounds at $11.91; and Knoxville,
218,182 pounds at $8.27.

The Knoxville market has handled 3,827,630
pounds this season for an average of $9.65.

The Abingdon, Va., market has taken the lead in
volume of sales in the Southern Appalachian Burley
tobacco belt, the season *s total sales being 9,345,002
pounds, bringing an average price of $9.98 per hun-
dred pounds.

United Stores Dividend

Directors of United Stores last week voted an ac-
cumulation dividend of eighty-one and one-quarter
cents on the no par $6 first preferred stock, payable
March 15th to stockholders of record February 23d.
Accumulations will amount to $14.25 a share effective
with this distribution.

New Cremo to Retail at Five Cents

Announcement was made last week that the New
Cremo cigar wall be priced at $37.50 wholesale less the
usual discounts, and to retail at five cents each, and
not three for ten cents as formerly.

The brand is henceforth to be known as the **New
Cremo*' and it will be materially improved in quality
and increased in size.

February i, igj4

MURIEL

CIGAR

Full
Size

5^

Long
Filler

Exceptional cigar
quality for a nickel

Other sizes

Lonitfeltows .
Perfectoi . .
ArUtocrats. .

3 for 25<

. . . 10^

2 for 25<

Mfd. by P. LOIILLAKD CO., INC.

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

JESSE A. BLOCH. Wheeling. W. Va. .....^ kilpHIideSt

CHARLES J. EISENLOHR. Philadelphia. Pa v!^! pl!!la*at

JULIUS LICHTENSTTEIN. New York, N. Y ;...; •^••'•liyjrrnmmitt?!

WILLIAM BEST. New York. K Y . Chairman E«ec«t^y Committee

MAJ. GEORGE W. HILL. New York. N. Y v r^P^H dent

GEORGE H. HUMMELL. New York. N. Y v "-K^I 3"!

H. H. SHELTON. Washington. DC Vice- P^! dent

WILLIAM T. REED. Richmond. Va. V cLK« dent

HARVEY L. HIRST. Philadelphia. Pa TV^.m^r

ASA LEMLEIN. New York. N. Y •• V' V wl^'.-in- n!™^

CHARLES DUSHKIND. New York. N. Y v9°"°!f' »°^.**"»«»°« D»r««to»

Headquarters. 341 Madison Ave.. New York City

ALLIED TOBACCO LEAGUE OF AMERICA

W. D. SPALDING. Cincinnati. Ohio vUl'pI!!!^!^

CHAS. B. WITTROCK. Cincinnati. Ohio ^•"T^!i|t2

GEO. S. ENGEL. Covington. Ky. ••:••••; sISSS

WM. S. GOLDENBURG. Cincinnati. Ohio aecrewry

ASSOQATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City ; wjIllviwS^IIdlnl

klLTON RANCK. Lancatter. Pa "F'^J V«e-Pre. den.

D. EMIL KLEIN. New York City ^<SlrJ.^Tr«.u^2

LEE SAMUELS. New York City Secretary-Treaiurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

TACK A. MARTIN. Newark. N. J i*' •/Vr"'E!**-3!°!

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 v' •■?*"!2!°!

SAMUEL WASSERMAN Vice-President

THE NATIONAL ASSOCIATIONS OF TOBACCO

DISTRIBUTORS

C. A. JUST. St. LoaU. Mo Ar-'irW President

MAX TACOBOWTTZ. 84 Montgomery St., Jersey City, N. J ......Secretary

E. ASBURY DAVIS. Baltimore. Md ^1^**^'^"*°"*

E W. HARRIS. Indianapolis. Ind Y,\^^'V^.j

JONATHAN VIPOND. Scranton, Pa Vice-President

GEO. B. SCRAMBUNG, Qeveland, Ohio Treasurer

MIA.

Grabosky Bros. Take Larger Quarters

RABOSKY BROS., IXC, manufacturers of the
Royalist brand, have leased the building; at 11-
15 North Second Street and will move their
manufacturing operations to that location
about March 1st.

The success of the Royalist brand during the com-
paratively short time it lias been marketed has been
such that the capacity of their present building, 21
North Second Street, is no longer adequate to take care
of the steadily increasing demand for their product.

The new* building contains live stories and base-
ment, each 64 by 108, and will provide a capacity of
150,000 ciirars per day, and is so constructed as to pro-
vide an abundance of* daylight throughout the building.
AVith the recent opening of now territories in New
York and other sections of the country, the present fac-
torv building has been pushed beyond its capacity.

' N. E. Becker has recently been added to the selling
force and is doing a successful promotion job in New-
ark and northern New Jersey territory.

Tobacco Dealers of Philadelphia Meet

At a meeting of representative tobacco retailers
of this city held on Tuesday, January 23d, it was de-
cided bv those present to organize an association to
be known as the Retail Tobacco Dealers of Philadel-
phia, Inc., with the stated pur])ose of becoming affili-
ated witli the Retail Tobacco Dealers of America, Inc.,
and **a desire to spread harmony throughout the in-
dustry and a more thorough consideration of those
who make tobacco products their means of a liveli-
hood.'^

Temporary officers chosen were Harry A. Tint,
president; Harold Dean, vice-president; George Jones
(Yahn & McDonnell), treasurer, and Sam Greenwald,
secretary-.

Benjamin Lumley, representative of the Garcia y
Vega factory in Tampa, returned last week from a visit
to New York City, where he met with officials of his
company and discussed plans for 1934. Ben returned
quite elated over the praise he received as to the volume
of business he had turned in from his territory during
the year 1933 for the Garcia y Vega factory. Garcia y
Vegas are distributed here through John Wagner &
Sons.

t6

Trade Notes

Joe Banker and Barton Lemlein, of M. Saks & Co.,
New Y^ork, were in town this week visiting John AVag-
ner & Sons, local distributors.

John L. IMcGuerty, of Romeo y JuTieta fame, left
on Wednesday for Tami)a, where he will spend some
time before leaving for Havana by plane to visit fac-
tory headquarters.

B. C. Jessa, representing the Heine's Tobacco Co.,
Massillon, Ohio, was in town last week promoting the
distribution and sale of Heine's Blend, a high-grade
smoking mixture which is enjoying a good demand here,
and distributed bv Yahn & McDonnell.

Otto Eisenlohr & Bros, have moved their office and
warehouse headquarters from 1018 North Broad Street,
and are now located at 1711 Vine Street, where the
new location affords better storage facilities and is
more accessible for the central business district.

The Sun Ray Drug Co., formerly located at 934
Market Street, has moved into larger quarters at 940
Market Street, where the larger window space will
permit of a more satisfactory display of their line of
tobacco products and druggists' sundries.

Paul Brogan, vice-president of Yahn & McDonnell,
is in Florida, where he is combining business with
health measures. Paul is recuperating from a serious
cold which confined him to his home for a while a short
time ago. He expects to remain in Florida for several
weeks.

Harry A. Tint, proprietor of the cigar stand at
1420 Chestnut Street, left on Thursday on his annual
visit to Tampa, accompanied by Mrs. Tint. The trip
will be made by auto, and while in the Florida city
enjoying the sunshine and balmy breezes, Harry will
visit the manufacturers of those high-grade Tampa
cigars wiiicli have made his stand famous to the
smokers of Philadelphia.

The Tobacco World

FOREIGN TOBACCO MARKETS

{Continued from Page 13)

ors at least 5,000,000 florins less, to say nothing of the
lower prices paid this year for American account.

Not since 1890 has a harvest brought such small
receipts as that of 1932. It is understood that the unit
cost price of the 1933 crop, to be marketed next year,
has been materiallv reduced. On the other hand, grow-
ers are faced with*(a) the declining consumption m the
United States of expensive cigars, which alone can at-
ford Sumatra wrappers, (b) the attempts of the Ger-
man Government to force the use of German grown
tobacco in the cigars manufactured m that country,
although it is expected that this will affect binder mate-
rial rather than Sumatra wrapper, and (c) the raising
of the excise tax on cigars manufactured in this coun-
trv which threatened to reduce materially the use ot
finJ qualitv tobaccos and, consequently, the earning ca-
pacitv of the plantation companies.
^ j^vA— During the period of Javanese early his-
torv, when the East India Company held dominance
there is no record of tobacco being exported trom that
countrv, the European markets having been supplied
from other sources, states American Consul Joel C.
Hudson, in a review of the Java tobacco industry, re-
leased in part bv the Tobacco Division, Department of
(Commerce. Although large ciuantities were produced
bv the natives at Kedoe, Bagelen, Banjoemas, Malang,
the Preanger Regencies, and elsewhere, it was manu-
factured into native kerf tobacco and consumed m
Java. The so-called culture laws ended many ot the
restrictions on tol)acco growing and a trade with
Europe began. At first only native tobacco was ex-
ported, but soon it was found unsuitabk^ for he trade
and interested parties began to search tor better quali-
ties Eventuallv, about 1830, someone obtained about
a pound of tobacco seed from Manila, despite the severe
restrictions there, and this is said to have been the be-
ginning of an improved tobacco cultivation in Java.

One way to gauge the importance ot tobacco to
Java today is to determine its importance as an export
crop in comparison with others. Statistics issued m
Vr.n indicated that the value of exports ot Java to-
bacco ranked forth, being exceeded by exports of sugar
and sugar cane products, tea, and rubber. It is believed
that the relative positions would be the same today as
tliev also prevailed during the year 1932. Tobacco dif-
fers from the others, however, in that the domestic
consumption is greater in proportion. Considerable
quantities of the domestic product, as well as appreci-
able imports, arc consumed locally. The mferior native

February J, 1934

tobacco (that grown on the estates is of higher quality)
finds an outlet not only in Java but also m certain Euro-
pean markets where a cheap tobacco is desired, io-
bacco is an important commodity in the commerce wi h
the United States, and since the export trade is largely
through Holland, American buyers secure Java tobacco
at sales there after it has been shipped trom Java.

WILLIAM H. O'KEEFE DEAD

William H. O'Keefe, 4827 Roosevelt Boulevard,
well-known cigar retailer, who has conducted a stand at
28 South Fifth Street for more than thirty-five years,
passed awav suddenly on Friday, January I2th, while
on the Frailkford Elevated train en route t^o his^ home.

Mr O'Keefe 's store was located m the heart ot tiie
old financial district of the city and he had a host ot
friends and customers among the bankers and brokers

^"^ ^^Fuieral services were held at the funeral home of
Andrew Ebert's Sons, 258 South fourth Street and
solemn requiem mass was celebrated m St. Martin s
Church on Thursday, January 18, with interment m
Kew Cathedral Cemetery. He was seventy-five years

* He is survived by one brother in Atlantic City,
two sisters in Los Angeles, and a sister m Gloucester.

Edward A. Hoffmeister Passes

Edward A. Hoffmeister, well known retired cigar
manufacturer and retailer, passed away p.n J>londay,
Suarv 15th, at his home, 803 South Sixtieth Street,
following a six-months' illness.

Mr Hoffmeister had been in the cigar manutac-
turing and retailing business for twenty-five years, and
was well known in Masonic circles

He was a member of Conrad B. Day Lodge, F. &
A. M.; St. John's R. A. Chaptei- No. 232; bt JoliY
Commandery, No. 4 K. T. and Lu Lu Temple A A
0 N M. S.; also Philadelphia Lodge No. o4, Lo>al
Order of Moose. He was sixty-nine years old.

Funeral services were held from his late residence
on Thursday, January 18th, with interment m West
Laurel Hill Cemetery. .

He is survived by his widow, Mrs. Katharina Hoff-
meister.

Nat Friedland, New York representative, has been
elected vice-president of the R. Steinecke Co.

Established 1886

"BEST OF THE BEST

99

""•'"'■"■' "' A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West, Florida

OUR OIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS ^ u u -

Make tobacco meUow and smooth In character
and Impart a most palatable flavor

FLAVORS FOR SMOKING «nd CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTUN. ABOMATIZEB. BOX FLAVORS. PASTE SWEETENERS

FRIES 8k BRO., 92 Reade Street. New York

mviwuiiiimititi^f>^ii>^^^

Classified Column

The rate for this column it three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c ) payablt
strictly in advance.

Bfe^ffif:{s?y,i,^,:g'tay;ft^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fli. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, JtV'ioS'cl^

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, bat 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.

REGISTRATIONS

SWANKY: — 46,286. For cigars, cigarettes and tobacco. January
9, 1934. E. Popper & Co., Inc., New York, N. Y.

KENT-SHIRE: — 46,287. For all tobacco products. January 13,
1934. George Schlegel, Inc., New York, N. Y.

TRANSFERS

KENTSHIRE:-^6,022 (Tobacco Merchants' Association). For all
tobacco products. Registered April 9, 1932, by George Schlegel,
Inc., New York, N. Y. Transferred to AUes & Fisher, Inc., Bos-
ton, Mass., January 20, 1934.

KENT-SHIRE:— -46,287 (Tobacco Merchants' Association). For
all tobacco products. Registered January 13, 1934, by George
Schlegel, Inc., New York, N. Y. Transferred to Alles & Fisher,
Inc., Boston, Mass., January 20, 1934.

VAN REX: — 37,692 (United Registration Bureau). For cigars, ciga-
rettes, cheroots and tobacco. Registered August 26, 1912, by Amer-
ican Litho. Co., New York, N. Y. Transferred by Consolidated
Litho. Corp., successors to Cigar Label Department of the original
registrants, to Deisel-Wemmer-Gilbert Corp., Detroit, Mich., Jan-
uary 23, 1934.

FLIGHT: — (United States Tobacco Journal). For cigars. Regis-
tered March 26, 1886, by Thoroughgood & Co., Jonesville, Fla., and
Janesville, Wis. Transferred by C. B. Henschel Mfg. Co., Milwau-
kee, Wis., successors to the original registrants, to George Schlegel,
Inc., New York, N. Y., January 27, 1934.

CORRECTED PUBLICATION
Renewal Registration

EL PURANO: — 46,82L For cigars, cigarettes and tobacco. Regis-
tered by Webster-Eisenlohr, Inc., New York, N. Y., December 27,
1933. (Originally registered February 9, 1900, by Otto Eisenlohr
& Bros., New York, N. Y., predecessors to Webster-Eisenlohr,
Inc.)

"What a welcome visitor
The Tobacco World
must be to wholesalers and
retailers !

*'If they are only half as
interested in reading it as
we ourselves are, we're glad
our ad is in it regularly" —

says an advertiser.

ii^.

i'i

FEBRUARV 15, 1934

■— ■>■■■■■ iW

-^

i

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

=

A

^\

^

^

Phila., Pa,
Hanover, Pa.
Cincinnati, Ohio

York Pa

AUTOKRAFT BOX CORPORATION Chicago, lii.

Lima Ohio Detroit, Mich.

A NatioivWidc Service 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

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember thi» Refardlew of Prict

THE BEST CIGARS

AMM f*aaB K*

WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

FEBRUARY 15. 1934

No. 4

The TOBACCO WORLD has signed the President's agreement and
is operating under NRA Code, gladly and wholeheartedly co-operattng to
the fullest extent in the Administrations effort to promote industrial re-
covery.

]IE\VING the matter entirely from the outside,
we are of the opinion tliat the 1933 statement
of Bayiik Cigars, Inc., is well worth the seri-
ous studv of everyone in the cigar busmess.
It is documentary evidence of the truth that there is
still gold in them thar hills of Product, Price, Mer-
chandising, Advertising. For what there may be in it
for the rest of us, let's take a look at the record.
I^Iaybe even a quick review, still from the outside, will
i)rompt some of the rest of us to follow the Scriptural
injunction : Go thou and do likewise. Without a doubt,
such a course would prove a very salutary move for
the revival of the cigar business generally. ^

Bayuk Phillies was a good cigar in 1932. Evi-
dently the buyers of ten-cent smokes thought so, if we
are to judge' from comparative sales. Yet the com-
panv finished up the year with a loss of more than a
milfion and a quarter dollars. To be sure, much ot
this heavy loss was accounted for by a substantial in-
ventory write-off, but more of it was occasioned by a
very perceptible reduction in the market for ten-cent
cigars. Bayuk officials decided to widen their market
by reducing the price of Phillies.

Please do not misunderstand us. We are not sug-
gesting that others follow that example now. W^e are
decidedly of the opinion that if the Bayuk people had
stopped witli the reduction, if they had sat back and
waited for the new price to increase their business
automaticallv, there would have been an entirely dif-
ferent story' told in their 1933 statement.

F ALL this seems to you like making a great
pother about something that everybody knows,
if it sounds like a glorification of the obvious,
that's all right by us. For that is exactly
what it is. Everybody knows that there is a fortune
for anyone who puts out a good product, who prices
it right, who promotes its sales conscientiously and in-
tensively, and who puts behind it the right kind of
advertising. But, in the cigar business, Bayuk was
one of the few manufacturers to put that knowledge

to work.

It is a statement of the obvious to say that, after
a man has made a good thing and put an attractive
price on it, he can count on selling it in huge volume
if he will see to it that it is prominently on display
in the places where it should be on sale, and then skil-
fully use advertising to send crowds of customers in

to buy it. . , .

We are of the opinion that the 1934 cigar busi-
ness will show a vast improvement if everybody in it
will do what everybody knows it will be a profitable
thing to do.

Ct3 [t3 Ct3

HP:RE is no intention to give the impression
that Bayuk had any monopoly on common-
sense business operations during the tough
year of 1933. If you could examine the pro-
grams of the other successful cigar manufacturing
companies, vou would find a similar lack of magic, a
similar absence of secret hocus-pocus, a simdar sup-
port of product and price with good merchandising
and advertising. The reports of the General Cigar Co.
and the Consolidated Cigar Corporation, for ms^tance,
are oIIht exemplifications of the power of the obvious
in th(' accumulation of profits. The substantial earn-
in^'-s in the last quarter of 1933, and the sales and earn-
in^'s during the first month of the current year, offer
luHher evidence of the simple truth that busmess is
there if vou make what the public wants, if you let
them know that you make it, and then make it easy
for them to buy it.

CjJ Cj3 Cj3

O, when we intimate that it might be well for
others to **go and do likewise,*' we are thinking
of what followed the price reduction, or per-
haps we should say, accompanied it. They did
not stop at Product and Price. On the contrary, they
inaugurated the most intensive program of Merchan-
dising and Advertising in the long history of the com-
pany They left nothing to luck and the problematical
procession of events. They went after the business
what we mean, and they began to get it m the first
month of the new program. , , ,^ .^ ,

When you think over the fact that the unit volume
of sales during 1933 was the highest in the history
of the company, exceeding the peak ye^ars 1927 and
1928— those two fine years in the cigar business— you
will not havr' the complete picture unless you give
credit to the company's detailed promotion campaign
and its well-conceived advertising, along with the pub-
lic acceptance of the product and the new price geared
down to the wide market. ^^

The TOBACCO WORLD (established 1881) i. published by Tobacco W^^r^^^^^^^^^^
Gerald B.Hankins. Secretary. Office. 236 Chestnut Street Philadelph^^^^^^ Entered as second-class mail matter,

able onlv to those engaged n the tobacco industry, $2.00 a year, ZO ""**-V«rrV, ^ 1879
beJcSJb^ 22. 1 W at the Post Office. PhiUdelphla. Pa, under the Act of March 3, 1879.

Ct3 Cj) Cj3

VEN such a hasty and superficial look as we
are making at the Bayuk operations in 1933
must embrace the fine work which the company
did for the industry as a whole. In addition to
the regular promotion plans to stimulate the buying
of cigars for Christmas, Labor Day, Father's Day and
other holidays, Bayuk spent a substantial slice ot its
advertising 'appropriation on its famous **How Long
Since You Smoked a Cigar'' and other advertisements
calculated to prompt men to smoke some cigar, not
necessarily a Bayuk Phillies.

Burley Sign-Up to Close February 17

Cigar Code Approval After March 8th?

^«jlTH 83 per cent, of tlio Biuley tobacco acreage
\fm i^"^^*^^'^' contracts for reduction in IIKU, the
Agricultural Adjustment Administration to-
day announced tliat the sign-up campaign now
under way will be closed on Fel)ruary 17th.

Of those growers who have signed Burley tobacco
reduction contracts, a))proximately halt* of them have
elected to reduce production .")() per cent, and the re-
mainder of those who signed are to reduce production
by 33 1 3 per cent. Officials ot* tobacco section of the
Agricultural Adjustment Administration stated that
during the past two weeks hundreds of growers who
signed contracts earlier to reduce their 1934 produc-
tion one-third, after more careful consideration, have
decided to reduce their production by one-half in order
to get the larger acreage and adjustment pa^^nents.

In connnenting on \\w progress of the 13urley
sign-up campaign, J. B. llutson, chief of the tobacco
section, said, ''It now appears that at least 95 per cent,
of the growers will particii)ate in the i)rogram. If this
number participate, and one-half of them elect the 50
per cent, reduction option and one-half elect the 33 1/3

l)er cent, option, the initial production allotment under
contract would be approximately 1]20,(K)0,()00 pounds.
With 5 per cent, of the growers unsigned, the i>roduc-
tion outside might be as much as 25,()()0,()0() pounds and
would result in a total cro]) in 1934 below *J5( ),()()( ),()()(>
l)ounds. Such a cro]^ would l)e the snudlest since 1927.

According to re])orts receivetl Wednesday by the
tobacco section from the J^urley tobacco region, the i^er-
centage sign-uj) in the various States is as follows:
Kentucky, SO i)er cent.; Tennessee, 90 per cent.; \n-
diana, 75 per cent.; Virginia, 92 per cent.; West Vir-
ginia, 60 i)er cent.

In those sections ol* llic Burley Belt in which
intense eiforts have been made to get the contracts
l)efore all growers, practically all of them have signed.
There are, however, some connnunities in ])ractically
everv State, and, in some cases, entire counties, in which
little work has been dcnic. During the next two weeks,
the ])artici])ating and non-participating growers will
be listed by townshi])s in each county and the ]n(»gram
wdl be exjllained to every grower who has not already
signed a contract.

New Opinion in Burley Agreement

URLKY tol)acco growers whose inoduction in
both 1932 and 1933 was abnormally low be-
cause of drought, flood, hail or stonn damage,
have been granted an additional option in the
Burley tobacco adjustment agreement which will make
it pos'sible for these growers to take imrt in the pro-
duction adjustment program, according to an an-
nouncement from the tol)acco section of the Agricul-
tural Adjustment Administration. ^

Growers in several sections were linding it mi-
possible to take part in the Burley program because
of the abnormallv small base which they could obtain,
because of low producti(»n in 1932 and 1933. The pur-
pose of the Administration in otTering the additional
oi)tion is to enable these growers to obtain a base more
nearly representative of their farms, it was said.

the new option is offered only to growers whose
crops were affected bv weather conditions and i)ro-
vides a base which is 70 ])er cent, of the 1931 acreage
and CO per cent, of the 1931 jjroduction. This option
mav be used onlv if the ])roducer is able to furnish

evidence satisfactory to the county control committee
that tiie abnormally h)W i)roduction in 19.")2 and 1933
was actually due to drought, Hood, hail or storm
damage.

A producer ])erniitted to use this new option will
be required to submit to his local committee a signed
statement setting forth for both 1932 and 1933 the
cause or causes of the low production and the extent
to which ])roduction was reduced because of each such
cause. This statement must be approved by the county
control committee and will be iiled in the state pro-
duction control office.

The Burley tobacco sign-uj) campaign closes Feb-
ruary 17th. CJroweis will be given until that date to
till out contracts and to file their rnpiests for permis-
sion to use the new option. It was ])ointed out l)y offi-
elals that if a grower has already liOed out a contract
in which one of the old options \va> used, it will not be
necessary for him to fill out a new contract t«> use the
new option.

Listeners to Choose U. S. Tobacco Program

HK HADIO audiencr' now ha^ an opiiortunily
to select the kind <»f entertainment it wants to
hear over an XB(^-WKAF network on Satur-
dav evenings at 0:4:) P. M., P^astern Standard
Time. Sponsors of this i)eri<)d on the air are going to
present several totally dilTerent types .»!' ]»rourams dur-
ing the next few weeks, and will adopt a- permanent
the one which meets with the -reat<'st response from

listeners.

^'One Xiizht Stand," a variety show featuring Pick
Padgett and Pat Malone, well-known radio roniedians,
and "other <-iitertainers, was tlie first of the half hour
broadcasts heard on Saturday, January 27th.

SubscMpient Saturday niiiht- are ln*iiming other
])erformers and other types of programs to listeners
from the XBC Radio City studios under the siumson-
ship n\' the Pnited Stati's Toba<-eo Company, sponsors
of *'The Half Hour for Men," which formerly was
heard at this time.

Several dilTerent types of show^ will be "audi-
tioned" for the listening pulili*- Ix'fore a liual selection
is made. Tiie decision to invite the audience to sit in
on the trial programs wa> reached after the sponsors
of the si'rie- had listened to nufiieroiis private auditions
and eliminated all but the mo^t i»r(»mising (►lYerings.

Th4 Tobacco World

X \M1^\V of tile gigantic conference called by
(Jenerai Hugh S. Johnson, Administrator of
the Xational Industrial Recovery Act, to be
held in Washington, March 5111 to 8th inclu-
sive, and attended by representatives of all the Code
Autliorities, Code !*ractice Committees or Trade As-
sociations in tlie country, we are inclined to believe
that there is little hojic of approval of the Cigar Man-
ufacturers' Code, or the Jobl)ers' and Retailers' Code
until after the completion of this conference.

The conference is called to determine practical
measures to meet ]>i-oblems which have arisen in actual
code oi)eration, and tliei-e have been many instances
where it has been found that Codes have been ap-
ju'oved, after what was thought to be most thorough
analysis and investigation, and after the Codes were
])Ut in operation it has i)een found that many of them
contained impracticable regulations which have caused
no little confusion, and this conference has been called
in the hope that information will be obtained which
will elimin{it<* similar mistakes in future Code ap-
])rovals and also devise ways and means of eliminat-
ing such objectionable features from the Codes al-
ready ai)i>roved an<l in o])eration.

A total of 27S Codes covering ai)proximately 90
per cent, of all industry and trade have been approved
to date and another X)'.\, most of them for relatively
small industi'ies, on which ])ublic hearings have been
held, are in c(Miise of ])rei)aration for final approval.
In his call for the conference, the opening ses-
sions of which are to be held in Constitution Hall, Gen-
eral Johnson outlined the major ])ur])oses to include
*Mhe consitleiation in public sessions of the possibili-
ties of increasing employment; ])rotection against de-
structive comi)etition and against excessive ])rices and
mono])olistic tendencies; the elimination of ine(|uali-
ties and inconsistencies in Codes; the position of small
enterprises; and the vast ])roblem of Code a(hninistra-
tion and the organization of industry for self-govern-
ment."

In his invitations to the conference, (Jenerai John-
son not only retpiested the su))mission before Febru-
ary 20 of '*such (piestions, or suggestions, which in
vour jialgment, may improve the judicy or procedure
of the Xational Recovery Administration" but he also
urg(»(l participants to come prepared to discuss details
of the elTect of the Co<les on their [larticular indus-
tries.

Accurate information i> <lesire(l, the (Jenerai
l)ointed out, concerning the etTects of Codes on opei'a-
tions, incliKlinir emplovment, in each industrv; on gen-
eral price tri'iids of pro<bicts in each industiy; and on
unethical trade practice^^, .i^ well as the etTects of Code
provisions, if any, restricting jiroduction through lim-
itation of machine hours or ])lant facilities, and the
effect of Codes on smaller concerns in each of the in-
dustries.

In addition, the invitation solicits suggestions t
be j)resente<l during the j'onference for the modifica-
tion, elimination or addition <>f specific Code ])i-ovi-
sions; pro))osals to?" the elimination of overla])ping
of Cod<»s and for the financing of industry Code ad-
ministration.

Il has be<*n stated definitelv receiitlv that (Jenerai
Johnson is inclined toward the belief that it will be

February j$, rgs4

n

necessary to further reduce the working hours per
week to ])ossibly thirty-two hours to accomplish the
re-eini)loynient of the many millions who are still on
the relief rolls, or the CWA rolls, and that this should
be done by working four days of eight hours each,
rathei- than five days of six hours each, or six days of
five hours each.

However, if this i)rogram is ])roj)osed, there is the
(luestion of weeklv and hourlv wage rates to be recon-
sidered, and many feel that the various industries,
particularly the small enteiiu'ises in these industries,
can not stand, for very long, anotluM* increase in wage
rates without some compensation in increased selling
))rices, and (JeiK'ral Johnson, on the one hand seems
to be committed to the tlieory that prices wust be kept
down, at least temporarily, while President Roosevelt
seems to be inclined toward the theory that an im-
mediate and substantial increase in prices is the only
road to the old time ])rosj)erity.

Then, too, although ])rice fixing clauses seem to
have slipped through <piietly in some of the approved
Codes, there seems to be a definite trend among the
"experts" in Washington to put 'Mhumbs down'' on
this feature which so many feel is our only salvation
against the unsciu]nilous ])rice-cutter, and, particu-
larly in the tobacco industry, of using tobacco prod-
ucts as *'loss leaders" to the very great detriment, if
not elimination, of the small entei-i)rise, which it is
the avowed ])urpose of the X'^ational Recovery Admin-
istration to protect and preserve.

All of these indications |»oint toward the defeat
of the one great hojie of the retailer and jobber that
when the Cigar ^fanufacturers' Code is approved,
there would be an established retail and jobbing price
** below which these products must not be sold'', and
which, if so estal)lishe(l, would enable them to pay
their employees the living wage which is the major
(;bjective of the X'ational Recoverv Administration
and also enable the *' small enterprises" to make a le-
tiitimate j)rofit on their investment.

W. L. FENTON'S SON KILLED

The many friends of W. L. Fenton, representing
the Little Cigar I)e])artment of the P. Lorillard Co.
in the Philadel])hia territory, are sym])athizing with
him over the sudden dejith (»f his son, Warren, on
February l.'^th. The fourteen-year-old boy was struck
by an automobile while coasting down steep Crystal
Lake Avenue, near the Pennsylvania Railroad cross-
ing in Westmont, X". J. The Fenton home is at Maple
and lladdon Avenues, Westmont, X'^. J.

U. S. TOBACCO COMPANY

X'et ]>rofit of the United States Tobacco Company
for the year ended December .''l totaled $3,396,482,
e(jual {() $7.().'3 a common share. This conij)ares with
$.1,r)34,!>4.'J, or $7.04 a common share in 1932. During
1933 a profit of $47.'),0s;; was made on sale of the com-
pany's treasury coinmon stock, which credited to the
surplus account.

/^li

>

News From Congress

r^

[ I ltHl!:fl

Emm

mfit tnfy

i:k^

^ 'AND

FtbERAL

Departments

'S»ift4JL

XPORT of a considerable volume of tobacco to
Italy is expected to result from a deal just con-
summated by the State Department with Italy,
contemplatin«: the doubling of the latter 's orig-
inal liquor quota in return for the purchase of Ameri-
can tobacco in an amount and of a type and quality not
disclosed.

Negotiations for the transaction were surrounded
by secrecy, due to the desire of the Italian government
to obviate the possibility of the market price of tobacco
being **run up'* on their buyers because of the agree-
ment to take our product. On the other hand, the State
Department is unwilling to give detailed publicity to
the pact because of a wish to withhold from other na-
tions seeking similar agreements knowledge on which
to trade for an increased liquor (piota.

The tobacco-liquor deal is one of a series being
negotiated by the State Department with the repre-
sentatives of other governments which are desirous of
securing permission to ship to the American market
now being opened up more of their native production of
wines and liquor than was permitted under the quotas
originally set by the administration.

It had been brought to the attention of State and
Agriculture Department negotiators that Italian pur-
chases of tobacco in this country have been steadily de-
creasing for some time past, due, it is said, to the fact
that tobacco consumjition in Italy has been greatly cur-
tailed because of the economic situation.

Because of the circumstances surrounding the deal,
it has been agreed between the Italian ambassador and
representatives of the State and Agriculture Depart-
ments that the Italian tobacco commitment shall be
stated in skeleton form, the oral or gentlemen's agree-
ment being far more important than that which has
been reduced to writing.

^^A^ ^^^^^ m^O^m

Cj3 Cj3 Cp

EVELOPMP^NT of an entirelv new method of
applying Internal Revenue taxes to cigarettes,
on the basis of price instead of weight, is ex-
pected to be sought by members of Congress
from the cigarette-manufacturing States when the tax
bill now before the House of Representatives reaches
the Senate.

The present tax of $3 per 1000 on cigarettes weigh-
ing not more than three pounds per KKK) is declared to
bear heavily upon the manufacturers of cheap ciga-
rettes, selling at 10 cents per package of twenty.

From our Washington Bureau 62ZAlbei Building

To afford relief to this class of manufacturers with-
out materially reducing the Government's revenue, it
has been suggested that the tax by weight be abandoned
and a graduated tax, beginning at $1 per 1000 on ciga-
rettes selling at 10 cents or less per package (exclusive
of State taxes) and ranging possibly as high as $6 per
1000 on the highest priced varieties, be adopted.

Sponsors of the plan believe it impossible to get ac-
tion in the House of Representatives and will therefore
await the arrival of the 1934 tax bill in the Senate.

It is pointed out that the application of the process-
ing tax on tobacco has placed manufacturers of the
cheaper cigarettes at a heavy disadvantage, particu-
larly where raw material and labor costs have ad-
vanced. A reduction in the tax, it is contended, will
meet the situation and permit them to continue in busi-
ness.

Cj3 Cj3 Ct3

F]DUCED taxes on cigars also are being sought
in Congress, where Representative Haines of
Pennsylvania is seeking a rate of $1 per 1000
on cigars retailing up to three cents.

Discussing his proposal in the House of Repre-
sentatives, Congressman Haines pointed out that at
present, on a two-for-five-cent cigar, the Government
receives eight cents a pound tax on the tobacco, in addi-
tion to the five cents a pound processing tax, declaring
that **the industrv cannot stand it."

'* While it might cost the Government several mil-
lion dollars if we were to reduce the rate of taxation on
these cheap cigars, I venture the prediction today that
in less than two years you would bring into the Treas-
urv of the United States an increased revenue," he
asserted.

The processing tax, he told the House, has made it
almost impossible for the 300 independent plants in his
district, producing hand-made cigars, to produce these
cheaper cigars.

**I want the House to know exactly the situation in
the cheap-cigar industry, because it means so much to
our people," Mr. Haines continued. **The processing
tax costs us approximately $1 per 1000. The N. R. A.
has increased the cost to the manufacturer of these
cigars, and when you note that 40 per cent, of the cigar
manufacturers in the United States have not signed
the P. R. A. and practically all of the people I repre-
sent have signed the P. R. A., you can see the advan-

Musings of a Cigar Store Indian

By Chief "Young-Man-Smoke-Cigars'*

N the first instalment of his reminiscences
under the title, *' Who's Who, and Why, in the
WTiite House," starting last week in the Sat-
urday Evening Post, the late Irwin H. (Ike)
Hoover, chief usher under nine administrations, wrote
thus about smokes in connection with the lunch menu:
** Cigars and cigarettes are passed to the men with the
cotfee to be consumed in another room; but at this
writing — 1931 — cigarettes, as yet, have not been passed
to the ladies. Once or twice, women have been bold
enough to ask for cigarettes and have been given them.
Confirmed smokers are more apt to bring their own
and steal off to their room or a quiet corner for a puff
after meals. Even this is uncommon. The only smok-
ing I have seen done at the table was on a few occa-
sions when only men were present, and the suggestion
came, of course, from the President. Even when the
company is all male, they retire usually to one of the
parlors or to the President's study for smoking."

^^_^3_^ ^^^^^^m ^^^^^^h

Cj3 Cj3 CJ3

^=gj E have a hunch that things have changed a bit
\f^ since those w^ords were written. W^e heard
only the other day of a luncheon at which Mrs.
Rainey, wife of the Speaker (we think it was)
had a desire for a cigarette. She had someone ask
Mrs. Roosevelt if it would be all right. The Presi-
dent's wife, at first, seemed to take no notice of the
question. Then, after a few minutes, in her natural,
charming manner, she turned to Mrs. Rainey and said,
' * May I have one of your cigarettes I I left mine in ray
room." She took a cigarette and lighted it, thus set-
ting the example for Mrs. Rainey and any others pres-
ent who cared to smoke. The nice point of the story is
that Mrs. Roosevelt does not particularly like cigar-
ettes. She took only a few puffs, and then let it die.
If you ask us, that was a fine sample of good manners.

(Continued on Page 17)

Thi Tohacco World

CS3 Cj3 Cj3

EORGE C. TYLER, theatrical impressario, in-
troduces us to the Tuscan cigar in the same
issue of the Post. Writing enthusiastically
of Italy and F. Marion Crawford, the author,
who lived there, Tyler bursts out: **Why, I even
learned to smoke Tuscan cigars, which is a feat—
though it's even more of a feat to like them. A sort
of a two-fisted stogie, very cheap, that tastes best after
you have burned a fourth of it off in a candle flame.
Once you learn not to let them bluff you, they make any
other'cigar taste like milk and water. The first time
I fired one up in Crawford's villa at Sorrento— that
was another place to make your heart miss a beat the
first time you saw it— he took me politely by the arm
and led me into the garden, intimatmg that he d be
charmed to sit with me in the open air untd I'd quite
finished it. ' '

Vehr%tary 15, 1934

S Print er^s Ink says, when Frank Finney in his
article, '* Grand Opera, Symphonies and
Cigarettes," vigorously announced his belief
that high-brow music was poor selling ammu-
nition to waste on low-brow radio audiences he left
himself wide open to reply. Out of the numerous com-
ments concerning his article Printer's Ink chose four
that reflect fairly the opinions of readers who have
read Mr. Finney's remarks with aversion and sym-
pathy. And out of those four, we cull the following
excerpts as definitely interesting to our readers :

Cj3 Ctj Cj3

M. D. MURPHY, advertising manager, Sloan
Valve Company : Specifically, can grand opera
or symphony programs sell cigarettes? I
question whether Mr. Finney knows. My guess
is that 15-cent cigarettes are the most popular be-
cause, midway between truly cheap brands and luxury
brands, they have been given an aura of social accepta-
bility. With the exception of a fear motive campaign
to stout persons, how many '* common people" have
ever looked out at you from a cigarette advertisement I
The model is always indubitably of the better sort, or,
if an actual attest is used, he or she is most usually a
person of distinction. :Maybe the 15-cent cigarette
makers have been wrong all these years. If so, they
have certainly profited by their mistakes.

Cj3 Cj3 Cj3

LEN E. SHEARS, copy staff, Henri, Hurst &
McDonald, Inc. : Of our group, all but one had
heard the Aida broadcast last Saturday after-
noon. Would they buy Luckies? Opinions
differed. Those who liked Luckies would continue to
smoke them. Those who didn't care for them wouldn't.
But all agreed that Luckies were brought to their at-
tention through the opera program more forcefully
than from any other medium. Certainly the program
was drawing enough listeners to insure a most fertile
audience for its message. And there lies the point.
Opera and sjTiiphony won't sell anything. That's not
their province. Their sole purpose on a commercial
program is to create an audience for the advertiser's
message.

Ct3 Ctl Cj3

OROTHY BARSTOWs director of radio, Mc-
Cann-Erickson, Inc.: Notwithstanding Mr.
Finney's bitter experience — ^he says ** adver-
tising is not a show to entertain the public"—
radio is show business and nothing else but. And

radio advert isinj^- is n show to ontortain the public.
The bigger the show, the better the audience, the wider
the influence of the advertising message. And useful
as are scientific analvses and consumer surveys and
sales tests, and valuable as are ex])erience and judg-
ment, still in the end the show is the thing, and all is
of no avail without that mysterious brand of genius
called sho\Mnanship.

D. FERXALD, vice-president, Earnshaw,
Earnshaw- Young, Inc.: In addition to the
primary handicap of not getting your money's
worth of audience to begin with, one very
practical reason why classical programs can't do much
besides ''cultivate good will" with those who do listen,
is the tremendous restraint i)laced on commercial an-
nouncements when the program itself is so lofty.

Rulings on Tobacco Contracts

EN administrative rulings, which interpret and

clarify certain provisions of the tobacco pro-
duction adjustment contracts, have been an-
nounced bv the Ai»ricultural Adjustment Ad-
ministration. According to the rulings, the limitation
placed upon contracting producers not to increase their
1934 acreage of basic crops for sale over the 1932 or
1933 acreage, includes the acreage of small grains
planted, annual row cr()i)s that are fed in the field,
hay and seed crops harvested, and all crops removed
from the land bv man.

The ruling interprets the limitation upon livestock
to include beef cattle and shee]). if tliey are designated
by law as basic commodities, and states that the limita-
tion follows the producer and not the land. AVhile the
number of dairy cattle is limited in the contract, the
volume of milk and its products ])roduced are not.

The estimated number of ])ounds of tobacco stolen,
or destroyed by fire may be included in the base pro-
duction figure, if satisfactory proof of the loss is given
to the county committee.

The provision in contracts hr which tenants are
not to be reduced in number ])elow those on the farm
in 1933, is interpreted to apply to all share-tenants or
share-croppers who gain a substantial ])art of their
income from the tobacco they grow on the farm,

whether or not they maintain residence of the farm.
Also, farmers who sign contracts are prohibited from
producing tobacco as owner, o})erator or tenant, and
are restrained from demonstrating for tobacco pro-
duction, on any farm not covered by an adjustment
contract.

Release of rented acres for i)lanting to crops to be
harvested in 1935 will be given only after the 1934
tobacco crop has been harvested.

The new regulations also define the interest of the
share-croppers or tenants, as set out in contracts for
Burley, fire-cured, and dark air-cured tol)acco, to mean
that such tenants shall ])articii)ate in the first payment
in proportion to their interest in the entire acreage.
Thus, if an owner has a total tobacco acreage of fifteen
acres in 1934, and ten acres is grown by a tenant for
half of the proceeds of that tobacco acreage, the owner
should have an interest in the i)ayment of two-thirds
while the tenant's interest would be one-third.

The rulings clarify the status of those authorized
to sign contracts in a re]»res(Mitative capacity. Oflicers,
or representatives who have been authorized ])y filing
of a statement under corporate seal, may sign for cor-
|)orations; executors, administrators, receivers, guar-
dians, may sign for their fiduciary by ])resenting eourt
orders; agents or managers for producers may sign if
given power of attorney.

President St. John's New Deal for Demuth

ECOMIXG i)resident of the Wm. Demuth C^om-
pany on January 15th last, after sixteen years'
affiliation with that well-known pipe manu-
facturing firm, George St. John, Jr., in an oi)en
letter to the jobbing trade announces a comi)lete and
sweeping change in the company's policies and official
personnel, and gives a personal i)ledge of rigid i)iice
maintenance on all of its products from this time on.

Not only is the choice of Mr. St. John as chief
executive of the Demuth < ompany a richly deserved
recognition of his long and earnest ^^tTorts on behalf
of that organization; but the news that he is now in
control of its operations is a denouement which will be
applauded for personal as well as business reasons
by a host of his well-wishers throughout the trade.
For but few outstanding figures in the pipe field enjoy
such widespread respect and confidence and so many
loyal friendships as does the new W. D. (■. head. His
taking up the reins of office having occurred simulta-
neously with a complete leorganization of the com-
pany's official personnel, Mr. St. John has already
taken a leaf from the code of Franklin D. Roosevelt
and has made himself virtual dictator of W. D. C.'s

management and futun* trade relations.

Joining the Demuth forces in 1918 in the capacity
of an accountant, Mr. St. John subsequently became
factory manager, in which capacity his achievement of
cutting factory costs nearly six per cent, resulted in
his bein<i: named vice-president. In that role he has
i)een a familiar figure to the trade, who have long been
aware of his guiding theory that it is not only plain
justice but sound business* to ''Protect and aid the
Jobber and the Dealer.*'

In explaining the campaign ])lans for the coming
year, Mr. St. John stated that W. D. C. will shortly
launch a complete new merchandise program, based on
a startlingly new ])rocess of briar p(»rfection which will
not only result in added ])ublic appreciation of W. D. C.
quality, but materially increase the sales and profits
of the trade. A striking national advertising cam-
paign will herald the introduction of the new line. But
perhaps most important of all, Mr. St. John points
out, is the new company policy and his personal pledge
and guarantee that hereafter the new Demuth pipes
** will never be sold by any national chain for a single
penny less than list price.''

Thi Tobacco World

ARE YOU A

"^^

Those untidy habits

come from jangled nerves

It's bad enough to look untidy—
ill-groomed.

But it' s twice as bad when you
think that those nervous habits
are a sign of jangled nerves ... a
friendly signal that says, "Find
out what's the matter."

So, if you catch yourself muss-
ing your hair, biting your nails,
chewing pencils — or suffering
from any other of those countless
little nervous habits —

Get enough sleep and fresh air
— find time for recreation. Make
Camels your cigarette. You can

:»1

\im

How

"" ^?j^; '"-»'

smoke as many Camels as you
please, for Camel's costlier tobac-
cos never jangle your nerves.

COSTLIER TOBACCOS

Camels are made from finer, MORE EXPENSIVE
TOBACCOS than any other popular brand of cigarettes!

THEY NEVER GET
ON YOUR NERVES!

TllUr ly I CAMEL CARAVAN f»ataring CUn Cray* CASA LOMA Orchm.tra and othmr H.adlin^r, Ev*ry Tayday and
lUNt IN! Thursday at 10 P. M.,E.S. T.-9P. M.. C. S. T.-S P. M.,M.S. T.^7 P. M..P.S. T.. ov.r WABCColumbna Network

Pehrmry 1$, 1934

Tobacco Agreements Tentatively Approved

ECRETARY OF AGRICULTURE HENRY A.
AVALLACE has tentativoly approved three
marketing aiifreenients for dark air-cnred and
fire-cured tobacco, which are de^iiined to im-
prove prices to growers. The agreements have been
sent to contracting tobacco firms for their signatures.
The agreements cover practically the entire amount of
fire-cured and dark air-cured used in domestic trade
and a large portion sold for export. They provide for
the purchase of specified minimum quantities of to-
bacco at certain minimum average prices.

Under Agreement Xo. 1, three by-product com-
panies would agree to take, up to a maxinmm of
15,000,000 pounds, at a price of 1.25 cents per pound,
the unsold surplus tobacco of fire-cured types 22, 23
and 24 and Green River type 36, thus providing an out-
let for the grades of tobacco which do not bring a
minimum bid of l^A cents per ])ound on the market.
Unsold fire-cured tobacco of type 21 which does not
bring a minimum bid of 1 cent ])er ])oun(l on the market
would be taken by the by-product companies, up to a
total of 2,000,000 pounds, at a minimum of .8 cent per
pound. As a result of the public hearing held on Jan-
uary 18th the mininmm price bid submitted on the mar-
ket for type 21 was reduced from 1.5 cents per pound
to 1 cent per pound. The termination clause has also
been modified so that the Secretary may end the agree-
ment on the first dav of anv month on ten davs' notice.
Types 35 and 37, contained in the first proposed agree-

ment, have been eliminated.

Agreement No, 2, covering tobacco used in snufT
manufacture, obligates three snufT companies to pur-
chase a total of 31,600,000 pounds of tobaccos with
mininmm average prices ranging from 7V\ cents to 14
cents per pound. The obligation of the companies to
purchase will be proportionately reduced if the 1933
l)roduction of the types used proves to be less than 155
million pounds.

Agreement No. 3, covering dark air-cured tobacco,
types 35, 36 and 37, used in the manufacture of chewing
and smoking tobacco, obligates each contracting manu-
facturer to purchase a (luantity of these types at least
equal to last year's usings at an average price of not
less than 7 cents j)er pound for types 35 and 36, and 7Vij
cents per pound for type 37. It also has a provision
for a proportionate reduction in the amounts of the
purchase, if the 1933 production is below the official
estimates.

Agreement No. 1 has been sent for signature to
forty leading companies which buy the dark types of
tobacco. Agreement No. 2 has been sent to the Ameri-
can Snuff Company, George W. Helme Company, and
the United States Tobacco Comi)any. Agreement No.
3 has gone to the R. J. Reynolds Company, P. Lorillard
Company, Liggett & Myers Tobacco Company, Ameri-
can Tobacco Comjiany, Brown & Williamson Tobacco
Corporation, and the Ryan-Hampton Tobacco Com-
pany,

To Appeal for Tax Reduction

URSUANT to a call issued by the Tobacco
Merchants Association of the U. S., a meeting
of cigarette, tobacco and snuff manufacturers
was held at the Hotel Biltmore, New York,
N. Y., on Tuesday, February 6, 1934, for the purpose
of discussing and considering the Internal Revenue
Taxation of Cigarettes, SnufT, and all forms of Smok-
ing and Chewing Tobaccos. S. Clay Williams presided.
After a tliorough discussion of the entire tax
problem in which emphasis was laid on the heavy tax
load now borne by the tobacco industry, it was decided
that an appeal be submitted to Congress for a sub-
stantial horizontal tax reduction in the tax rates on
cigarettes and all kinds of smoking and chewing to-
bacco and snuff, such reduction to be applied in an
equal percentage to all of these products.

The meeting also went on record in opposition to
the establishment of any differential in the tax on
cigarettes or on smoking and chew-ing tobacco and
snuff.

A committee with full power to present the views
of this meeting to Congress and to take such steps as
may be deemed wise and proper has been appointed as
follows :

S. Clay Williams, chairman; J. W. Abbott, Jesse
A. Bloch, 0. H. Chalkley, AVilliam M. Dillon, John C.
Flvnn, F. L. Fuller, Paul M. Hahn, Junius Parker,
W! R. Perkins, William T. Reed, H. P. Taylor (of
Taylor Bros., Inc.).

The following companies were represented at the
meeting: American Snuff Co., The American Tobacco
Co., Bendixen Tobacco Co., Benson & Hedges, The
Bloch Bros. Tobacco Co., Byfield Snuff Co., Conti-
nental Tobacco Co., Crimson Coach, Inc., De Nobili Ci-
gar Co., David Forry Tobacco Co., Geo. W. Helme Co.,
Larus & Bro. Co., Liggett & Myers Tobacco Co.,
P. Lorillard Co., Pliilip Morris & Co., Ltd., Penn To-
bacco Co., R. J. Reynolds Tobacco Co., Ryan-Hampton
Tobacco Co., Scott Tobacco Co., Scotten-Dillon Co.,
United States Tobacco Co.

Lucky Strike Broadcasts Opera Premiere

ERRY MOUNT," Howard Hanson's opera
in English, which had its world premiere at
the Metropolitan Opera House on Saturday,
February 10th, and which w^as broadcast to
music lovers throughout the country over combined
coast-to-coast NBC-WEAF-WJZ networks, through
the courtesy of the American Tobacco Company, is an
ail-American grand opera.

a

Composed by an American to a libretto by another
American, Richard Stokes, it concerns the Puritans of
New England and was inspired by a native author,
Nathaniel Hawthorne. In addition the principal role,
that of the clergj^man. Wrestling Bradford, was
taken by the famous American singer, Lawrence Tib-
bett, and the scenery has been done by the American
designer, Jo Mielziner.

Tht Tobacco World

THE HEIGHT OF GOOD TASTJE

Simif UaSaca? ami ONLY t/ie C^nte^^ ^£em€6

February 15, 1934

it

STOOPNAGLE AND BUDD WITH CAMEL

OLOXEL STOOPNAGLE AND BUDD, popu-
lar CBS comedy team, have been signed by the
K. J. Reynolds Tobacco Co., makers of Camel
cigarettes, as featured i)ers()iialitics on the
Camel Caravan heard ever> Tuesday and Thursday
from 10 to 10:30 P. M., Eastern Standard Time, over
the coast-to-coast WAH(^-C\)lumbia network. The two
comedians made their first appearance on this program
Tuesday, February loth.

In addition to presenting- the very latest inventions
and stuff, as is their wont, the (\)lonel and Budd will
serve as masters of ceremony. Glen Gray and his Casa
Loma Orchestra, a regular feature of the Camel Cara-
van since its inception last December, will continue to
purvey their danceable tunes with Pee Wee Hunt and
Kennv Sargent as vocalists.

In order that they might accept this contract, which
is for a long-term engagement in two half -hour si)ots
each w^eek, the Colonel and Budd were granted a re-
lease from the Pontiac program, on whicli they have
been featured since December Kith. At the time the
release was granted their contiact with General Motors
had several weeks to run. The comedians concluded
their engagement with Pontiac during the broadcast of
Wednesday, February 7th, switching to the Camel Car-
avan six days later on Tuesday, February 13th.

AMERICAN SNUFF EARNINGS INCREASE

American Snuff Com])any shows for li)33, as certi-
fied by independent auditors, net income of $2,002,092
after 'depreciation and Federal taxes, etiuivalent, after
the 6 per cent, preferred dividends, to $4.12 a share on
433,100 shares of connnon stock, exclusive of 6900
shares of common stock held in the treasury. This
compares with $1,818,025, or $3.r)9 a share, on 440,000
common shares in 1932, including shares held in the
treasury.

LIGGETT & MYERS ANNUAL MEETING

Notice has been given by the Liggett & ^fyers To-
bacco Co. that the annual meeting of the stockholders
of that company for the election of directors and the
transaction of such other business as may ])roi)erly
come before the meeting will be held at the Home Office
of the companv. No. 15 Exchange Place, Jersey City,
N. J., on Mondav, the twelfth day of March, 1J)34, at
11 o'clock A. M!

Record of stockholders entitled to vote at this
meeting will be taken as of 3 o'clock P. ^I., February
15, 1934.

CONSOLIDATED CIGAR EARNINGS

Consolidated Cigar Corporation and subsidiaries,
according to a preliminary report for 19.*>.S, had net
profit of $497,779 after depreciation. Federal taxes,
etc., equal, after allowance for dividend requirements
on subsidiary preferred stock, to $5.72 a share on
84,898 shares of GVi per cent. ])rior preferred stock
outstanding at the close of the year. Consolidated
profit in 1932 amounted to $935,853 after taxes, de-
preciation, etc., but before considering reduction of
leaf tobacco inventories as of July 2, 1932, to the vjdue
determined by the management, which resulted in a
charge of $1,242,650 made directly against surjilus ac-
count. For the quarter ended December 31st net ])rofit
was $224,084, after taxes and charges, compared with
$217,565 in the December quarter of 1932.

OLD GOLD'S NEW AIR SERIES

FD FIOIMTO'S famous AVest Coast Orchestra
with Dick Powell, (ilm star, as singing master
of ceremonies, inaugurated a new series of Old
(Jold programs over a nation-wide WABC-
Columbia network on Wednesday, Februcuy 7, at 10
P. M., Eastern Standard Time. Featured vocalists and
novelty groui)s included the Three Debutantes, the
Fireaters, Muzzy Marcellino, Lief Frickson and Kay
Hendricks. Kenneth Xiles announced. The series
oriiiinated in San Francisco from the studios of KFRC.
The strains of ''Rio Rita," Fiorito's traditional
theme, ojjened the l)i-oadcast, following which the band
was heard in "You've (lot Fverything." The second
selection introduced California's clowning crooner,
Muzzy ^larcclliiio, with the Del)s — Margery, Hetty and
l),,i--iii '* Dancing on a Ixainbow" and "Mine." Lief
Frickson, former Los Angeles doorman, was heard next
in his baritone^ version of "(Join' to Heaven on a
Mule," after which the girls returned for "Night
Owl." Old (fold's "You're an Old Smoothie" sequence
terminated the tirst i)ortion of the broadcast.

Part II featured Dick Powell's interpretation of
*'Did You Fver See a Dream Walking?" interpolated
by "I'm a Dreamer." Other features were Ray Hen-
dricks' "Vieni Su," Ted Fiorito's own piano tricks,
and instrumental novelties of the Fireaters in "Liza."
"The (loose and the (lander," interpreted by Muzzy
Marcellino and the Debutantes; Lief Frickson 's ver-
sion of "Old Black Joe," and the entire company in
** Hell's Bells," completed the ])remiere.

GENERAL CIGAR CO. EARNINGS

Tile General Cigar Company hnd 1933 net income
of i};721,r)20, comjjared with net income of $2,058,370 in
VXV2. The VXVA net was after all deductions, includ-
ing $1,00(1,424 adjustment of iuventories of raw mate-
rials as of September 'Ul.

BAYUK EARNINGS FOR 1933

Report of Bayuk Cigars, Inc., for the year ended
December .'H, VXV.], certitied by independent auditors,
shows net ])rolit of $()()4,711 after depreciation, inter-
est, amortization, taxes, etc., ecpiivalent after pre-
ferred dividends, to $.').! 1 a share on 90,851 no-par
common shares outstanding. This compares with net
loss of $l,2()2,r)5() foi' the previous year.

The 19.'?.'^ earnings are exclusive of $60,179 undis-
tril)uted earnings for the year of controlled company
not consolidated.

P. LORILLARD CO. ANNUAL MEETING

Xotice has been given by the P. Lorillard
Co. that (in lieu of closing the Stock Transfer Books)
:) v. M. Tucs<lay, February l.'J, 19:J4, is fixed as the
record date for the determination of the stockholders
of the comj)any entitled to notice of and to vote at the
aiinual meeting of stockholders to be held on March 13,
1934, and that only stockholders of record at 3 I'. M.,
on February l.'>, 19.'>4, shall be entitled to such notice
(tf and to vote at such annual meeting, notwithstanding
anv transfer of anv stock on the books of the com-
pany aftei- said record date.

P. LORILLARD CO. REPORTS

The p. Lorillard Co., for MKVA, reports net income
of $2,380,254, aft<'r various charges, compared with
$4,556,052 in 1932.

Tht Tobacco fVorU

arettes

Of all the ways in

which tobacco is used

the cigarette is the

mildest form

You know, ever since the In-
dians found out the pleasure
of smoking tohacco, there have
been many ways of enjoying it.

But of all the ways in which
tobacco is used, the cigarette is
the mildest form.

Another thing — cigarettes are
about the most convenient smoke.
All you have to do is strike a
match.

Everything that money can
buy and everything that Science
knows about is used to make
Chesterfields. The tobaccos are
blended and cross-blended the
right way — the cigarettes are
made right — the paper is right.

There are other good cigarettes,
of course, but Chesterfield is

the cigarette that*M

MILDER
the cigarette that
TASTES BETTER
we ask you to try them

yA£y^a^/y

© 10J4. liGcnT & hirrns Torm m Co.

Vehruary i$. /y?;

t3

MIA.

f)HIbADEl2

F YOU HAPPEN arouiid Ninth and Columbia
Avenue between ,*> and 4 o'clock in the after-
noon, wlien the first sliift is comine; ofT and the
second going on, you will be .justified in jump-
ing- to the conclusion that Bayuk is continuing the rec-
ord which made 1933 the comiiany's banner year in
unit production and sales, exceeding the peak years
1927 and 1928. You will find it easy, in fact, to believe
that Januarv this vear was considerablv better than
the same month last vear. Those workers sure do
swarm in and out in hordes.

The Arthur Sclndtz Co. has been doing an inten-
sive sales job on Phillies in the Erie (Pa.) territory,
assisted by E. T. Clifford, Bayuk salesman.

The sales force of the Kochester, N. Y., branch,
under ^lanager ^I. F. Westplial, also reports unusual
successes recently in placing Phillies among the dealers
in that territory.

Harry Rice, of the N. Rice Ciuar Co., Pittsburgh,
Pa., a recent visitor, said tliat their increasing business
necessitated the addition of three trucks and six new
salesmen's automol)iles.

The management of the cigar stand in the Art
Club of Philadelphia has been acquired by Yahn &
McDonnell, local distributors, and w'ho now" operate
the largest chain of hotel, club and restaurant cigar
stands in this city.

Monticello smoking tobacco, a high-grade brand of
John Wagner & Sons, is enjoying a splendid sale and
is making new friends constantly in ever-widening ter-
ritories. The ** Wagner'' brand of cigars is also show-
ing a splendid increase in demand at this time.

The Philadelphia Association of Tobacco Distrib-
utors held their regular meeting on Monday evening
with a goodly number in attendance. Routine business
was transacted and a feeling of optimism in regard
to better business conditions was much in evidence.

The Wholesale Confectioners Association of Phil-
adelphia held their first annual banquet at the Hotel
Benjamin Franklin on Saturday night wdth about 800
guests in attendance, including practically all of the
tobacco jobbers in the city. The affair was highly en-
joyable and voted a definite success.

Trade Notes

John L. McHuerty, U. S. Representative for the
Romeo y Julieta brand, writes from Havana that con-
ditions there are improving and ample shipments of
this high-grade brand will soon be coming through.

Joe Banker and Barton Lemlein, of M. Sacks &
Co., New York manufacturers of high-grade cigars,
visited John Wagner & Sons last w^eek, and reported
business very good.

Sam Adler, of Villazon & Co., Tampa manufac-
turers, was in town last week displaying a new" size
in the Villazon line front-marked Roosevelts and re-
tailing at fifteen cents. Sam reported this new size
selling like the proverbial **hot cakes."

The Marcello, Mint Perfecto, and As Y^'ou Like It
brands, controlled by Yahn & ^fcDonnell cigars, are
enjoying a much wider distribution in the past few
weeks and enjoying a splendid increase in sales as
a result.

The King Edward brand, product of John Swisher
& Sons, Jacksonville, Fla., is again selling in the tw^o-
for-five cent class, after being in the three-for-ten class
for a time, and sales are responding to the reduced
price.

Benjamin Lumley has just returned from a trip
to Washington and Baltimore, and reports a splendid
sale on his Garcia y Vega brand. So far this year
business is far ahead of the same period of last year,
and every indication points to the fact that it will
continue in that direction.

Harry Tint reports from St. Petersburg, Fla., that
he is having a splendid time enjoying the sunshine and
balmy breezes in that city, and expects to be at the old
stand 1420 Chestnut Street, wiiere he dispenses ** noth-
ing but the best" in high-grade cigars and other to-
bacco products by February 19th.

7A# Tobacco World

ROWN & WILLIAMSO

TOBACCO CORP.

UNIONIZE

Louisville. Ky., Dec. 13, 1933 — The Brown 8b
Williamson Tobacco Corporation announced yes-
terday that it had signed an agreement with the
tobacco workers' union whereby company fac-
tories (located at Louisville, Petersburg, Va., and
Winston-Salem, N. C.) become union plants, and
WINGS CIGARETTES, SIR WALTER RA-
LEIGH SMOKING TOBACCO and other B. &
W. products will carry the union label as soon
as necessary labeling equipment can be installed.

(extract from last month's trade press)

'^•m

'^.irr

tOi -mtitt I

SnokingTobacco

t piPEANoCNiWTTCSJ

.Vin^ti*! rt Z(U*}

Wm tSf -Mirf if* mMtwfl

BROWN & WILLIAMSON TOBACCO CORP.. LOUISVILLE, KENTUCKY

Brown 8t Williamson products have been designccl to bring you the nt^ost profit m all lines and
price*. New products are added to fit the times. Are you getting your share of profit from these live,
selling items: Dial Smoking Tobacco. Sir Walter Raleigh Smoking Tobacco. Raleigh Cigarettes.
Kool Cigarettes. Golden Grain Tobacco. Target Cigarette Tobacco and Bugler Cigarette Tobacco.

BteMDeo
^'OARetteTobaC(

TiM CaM •! Mm TlN-Mty S<-

fsS

lt^±

Vi-J^

?i-!er

ck"'

V^}

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CIGARETTE
- TOBACCO

rjBjPv:

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c«^

Cwli-Tia»«d IS.

Nq:

•fCT^m;,

ccol

Tk* BMrtoy BteM4 S<

::s€<L (B6mckr\

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Th* RCAL Cigar**** T*k*cc*

February i$, 1934

i$

PROCESSING TAX REDUCED ON FLUE-CURED
TOBACCO USED FOR PLUG OR TWIST

HE following bulletin has been released by the
Tobacco ^Merchants Association, in reference
to reduction in Tobacco Processing Tax:

AVe quote below an official statement issued Feb-
ruary 1st bv the A<>ricullural Adjustment Administra-
tion, which is self-explanatory:

"Secretary of Agriculture Henry A. AVallace has
issued a certificate ordering a reduction of nine-tenths
of a cent per pound in the processing tax imposed on
tlue-cured tobacco used in the manufacture of plug and
twist tobacco products, it was announced today by the
Agricultural Adjustment Administration.

"According to the certificate, the ditTerence be-
tween the 4.2 cents per pound on flue-cured tobacco,
and the new rate of 3.3 cents per pound farm sales
weight, on such tobacco when processed into plug or
twist, will be refunded to processors.

"The abatement in the amount of the U\k was
ordered after a public hearing and investigation re-
vealed that plug chewing tobacco and twist, made from
flue-cured tobacco, were of such low value as compared
with the quantity of tobacco used in their manufacture
that a tax in excess of the new rate would tend to cause
a shift to other tobacco commodities in the manufac-
ture of plug chewing and twist.'*

Effective Date of Reduction

While the elYective date of this reduction is not
stated in the above-quoted statement, we have been
advised by the Depart ment over the telephone that il
became effective on Frbmarij Ist and that it would
apply to processing taxes due and pmfahle after Feb-
ruary 1st. Thus, tJtr tax nu sucJt tohaeco, processed
during the wuuth ftf January, which tax does not be-
come due and payable until \\w end of Fel^ruary, will be
at the new rate.

The Readjusted Rates

As a result of the .9<^ per i)ound reduction in the
basic rate on flue-cured to])acco used in the manufac-
ture of plug and twist tobacco products, the rates on
such tobacco when used for the purposes indicated, will
be as follows:

Farm Sales A\'eight
In Processing Order
Stem not removed
Stem removed

Old Hate
4.2^ per lb.

Xew Hate
3.3^ per lb.

a

4.7c

( i

a

3.1t

4.8^

( i

( (

a

n

It is to be assumed, of course, that adequate in-
structions will be issued by the Department relative to
this tax readjustment stating how it is to be computed
or applied, and reported, which instructions will doubt-
lessly be in the hands of the various revenue collectors
before the end of this month.

BID FOR WHELAN STORES REJECTED BY

REFEREE

Refcret' in bankruptcy Irwin Kurtz last week in-
structed the Irving Trust Conqiany, as trustee in bank-
ruptcy for the Ignited Cigar Stores of America, to
reject an offer made l)y the Branfield (\)rporation for
the Whelan Drug Stores, a subsidiary of United Cigar
Stores.

16

Kurtz told the trustee to co-o])erate with the
United 's reorganization committee in making a bid
for the Whelan stores if Referee Oscar W. Ehrhorn,
to whom the case has been referred, should insist on
})roceeding with the sale on P\'bruary 10, the deadline
set for acceptance or rejection of the offer.

A representative of the Irving Trust at last week's
hearing told Kurtz that the Branfield Corporation's
cash offer of $5,179,000 would mean that creditors
whose claims were allowed might receive but from 35
to 39 cents on the dollar.

NEW LUCKY STRIKE DISPLAY

A new and striking Lucky Strike window display
has just been released by the American Tobacco (V)m-
pany, which is attracting wide interest because of its
unique appeal. The new display consists of an elec-
trically operated revolving wheel on which are red let-
ters spelling "Lucky Strike," and a red ball bounces
around the wheel and stoi)s on these letters. Across
the top of the wheel is a slide in which ai)pears moving
sentences describing the reasons Lucky Strikes are so
good and why smokers should smoke that brand.

The new display will be seen in all i)arts of the
country just as soon as a sufficient sui)ply can V)e ]iro-
cured.

Under Billy Penn's Hat

George Stocking (Arango y Arango), manufac-
turers of the Don Sebastian line, was a visitor in town
last week and reports business on the up-grade. John
Wagner & Sons are doing a good job in this territory
and have a splendid distri])ution and sale (m this high-
grade brand.

Mannie Perez, of Marcelino Perez & Co., Tanqia
manufacturers of high-grade Havana cigars, was in
town last week and reports a brisk business on his
Redencion brand. Yahn & McDonnell, local distrib-
utors, report a good demand on this fine line, wuth
the Redencion Pals increasing steadily.

E. Rosenthal, representing (lonzales & Sanchez,
Tampa, was in town this week with a new size known
as G. & S. panatela to retail at five cents, which has
all the a])pearance of being a winner. The (i. & S. per-
fecto retailing at five cents has been a big seller with
Yahn & McDonnell, local distributors for some time,
and the new panetela will make an excellent running
mate for this brand.

Paul L. Brogan, vice-jjresident of Yahn & McDon-
nell cigars, was called home from his visit in Florida,
where he had gone to recuj)erate from the effects of
a severe cold contracted during the rush (»f business
in the holiday season, on account of an injury to his
son suffered in a sledding accident. Th(» boy's arm
was fractured in two places, but Paid reports the
breaks are mending nicely and expects the boy will
soon be as "good as new."

The Tobacco World

News from Congress

(Continued from Page 6)

tages

which many of the cigar manufacturers have.
Then when you know that the Philippines are today
taking the cheap market away from the American
cigar manufacturer and the American growers of to-
Imcco, you can further ap])reciate the situation."

As evidences of the difficulties which this class of
manufacturers is laboring under, Representative
Haines submitted telegrams asking for relief from the
Porto Vana ('igar (^ompanv, Dallastown; F. X. Smith
Sons Companv, McSherrystown; W. J. Neff and Com-
pany, Red Lion, and the Fast Prospect (Ugar (Com-
pany, Fast Prosi)ect.

CJJ Ct3 Ct)

PPROVAL of the code authority elected by the
cigar container industry to serve until .June
l(;th next, or until their successors are ap-
pointed, was announced February 12th !)> Re-
covery Administrator Johnson. The meml)ers (.f the
authoritv are as follows:

Rodgers Xeelv, AUentown, Pa., representing the
National Cigar Box Manufacturers Association, chair-
man; Charles Fisher, Fastern (^igar Box Manutac-
turers Association, I^altimore; Harry W. Buckley,
^Vestern Cigar Box Manufacturers Association, Lima,
0 -George J. Snvder, Philadeli)iria, representing un-
affiliated manufacturers, and B. S. Sentz, Red Lion,
Pa • Harry F. Unger, Xew Brunswick, X. J., and David
Gross, Tampa, Fla., representing the industry as a
whole.

CUBAN CONDITIONS IMPROVE

The series of political developments that occurred
during Januarv, culminating in the installation of
Col Carlos Mendieta as president, were tollowed by
a return to more tranipiil conditions that have restored
a measure of confidence and optimism to the business
communitv. it is vet loo soon to gauge accurately
the full effect of the political change, but a restoration
of deferred consumer demand, concurrent with a be-
<nnning of stock replenishments on the part ot retail
merchants, is in evidence. A deterrent factor in tor-
ei-n imrchasing, however, is the apparent widespread
belief among the imimrt trade that a revision of the
reciprocity treaty between (Hiba and the I nited States,
with important 'reductions in the Cuban tariff struc-
ture, is imminent. . , , • i i

(Conditions in the tobacco industry improved dur-
ing Januarv, the demand for high tobaccos increasing
Prices are 'above the levels of last year, and stocks ot
PJ33 low-grade filler are reported to be nearly ex-
hausted. The strike, which paralyzed activities of most
(»f the large Habana cigar factories, has been partially
settled, and on January 2()th only two of these factories
remained closed. The outlook for the 1934 crop is
micertain, owing to varying weather conditions .n dit-
ierent producing areas. Fxports of tobacco and to-
bacco products during December were valued at. $945,-
72G, as against $1,056,193 during December, 1932.

February 1$, 1934

Exceptional cigar
quality for a nickel

Other sizes

Lonilfetlowt .... 3 for 25^

Perfecto* I*^

Ariitocrats 2 tor 25^

Mfd. by r. LOBILLASO CO., INC.

ilOtaM

in I

I

1

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

<^^

JESSE A. BLOCH. Wheeling W V..

CHARLES J. EISENLOHR. Philadephi^. Pa. ..
JULIUS LICHTENSTEIN, New York, N. Y. ...

WILLIAM BEST. New York, N- Y. •i..-.

MAJ. GEORGE W. HILL, New York. N. Y

GEORGE H. HUMMELL. New York. N. Y

H H SHELTON. Washington, D. C

WILLIAM T. REED. Richmond, Va.

HARVEY L. HIRST, Philadelphia, Pa

ASA LEMLEIN. New York. N. Y.

CHARLES DUSHKIND. New York. N. Y.

Headquarters, 341 Madison Ave.,

President

'*'!!'.!!.'!!!." Ex-Presldent

Vice- Preiident

.Chairman Executive Committee

Vice-Prendent

.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 vJ^lKsideS

CHAS. B. WITTROCK. Cincinnati, Ohio Treasurer

GEO. S. ENGEL, Covington. Ky. ........; SSJSS

WM. S. GOLDENBURG, Cincinnati, Ohio ij^t^*» j

ASSOaATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

TOHNH. DUYS. New York City Flrit'vice-Prelidw

illLTON RANCK. Lancaster. Pa Second Vice-President

D. EMIL KLEIN. New York City sS:retaS-Tieasurer

LEE SAMUELS, New York City Secretary ireasurcr

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

IRVEN M. MOSS, Trenton, N. J. ...•-.•• ISTretary-Treasurer

ABE BROWN, 180 Grumman Ave., Newark, N. J secretary ireasurcr

NEW YORK CIGAR MANUFACTURERS' BOARD OF

TRADE

.„„__,„ ....President

^ikiit'^^i^iiMjii^'::::^^^^^^^^^ Vice-Pre.ide^

THE NATIONAL ASSOCIATIONS OF TOBACCO

DISTRIBUTORS

JONATHAN VIPOND. Scranton, Pa Tv!!««^

GEO. B. SCRAMBLING, Cleveland, Ohio ireawwer

Eatabliihed 1886

"BEST OF THE BEST

9f

^^^^1^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Ktp Wtat, Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco melCow and amooth In charactat
and impart a most palatable flavor

rUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTVN. AKOMATIZEB. BOX FLAVOKS. PASTE SWEETENEU

FRIES & BRO., 92 Reade Street, New York

Classiiied Column

The rate foi this column i% three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c.) payable
strictly in advance.

Kt^CTratr5ifnt!tr^tB?"5iir^

ixir«vir/strrsvirr»itr*flt)«ririr8Ti

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last PaflF,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, Jtw toS'cI^

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 Her"
chants' Association on each registration.

Note B— If a report on a search of a title necessitates the reporting of mors
than ten (10) titles, bat 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-one (31), an additional charge of Two Dollars
($2.00) will be made and so an additional charge of One Dollar ($1.00) will b«
made for every ten (10) additional titles necessarily reported.

REGISTRATION

CUSTOM MADE:— 46,290. For cigars only. November 14, 1933.
Consolidated Litho. Corp., Brooklyn, N, Y. ("Customed Made"
originally registered on August 5, 1913, by Kaufman, Pasbach &
Voice, New York, N. Y., predecessors to Consolidated Litho.
Corp.)

TRANSFERS

FLIGHT: — (U. S. Tobacco Journal). For cigars. Registered by
Thoroughgood & Co., Janesville, Wis., March 26, 1886. Trans-
ferred to Geo. Schlegel, Inc., New York, N. Y., and re-transferred
to G. W. Van Slyke & Horton, Albany, N. Y., January 30, 1934.

AMORADA:— 26,258 (U. S. Tobacco Journal). For cigars. Regis-
tered December 4, 1902, by Schmidt & Co., New York, N. Y.
Through mesne transfers acquired by the Consolidated Litho.
Corp., Brooklyn, N. Y., and re-transferred to Grabosky Bros., Inc.,
Philadelphia, Pa., February 5, 1934.

AMERADA: — 45,718 (Tobacco Merchants' Association). For ci-
gars. Registered May 9, 1930, by the Amerada Cigar Co., Passaic,
N. J. Transferred to the Consolidated Litho. Corp., Brooklyn,
N. Y., and re-transferred to Grabosky Bros., Inc., Philadelphia,
Pa., February 5, 1934.

LOPEZ DE VEGA:— 16,718 (Trade-Mark Record). For cigars.
Registered June 11, 1896, by Geo. Schlegel, New York, N. Y.
Transferred to G. .■\. Kohler & Co., Yoe, Pa., February 5, 1934.

FLOR DE ALWIN:— 17,098 (Tobacco World). For cigars, ciga-
rettes and cheroots. Registered February 1, 1909, by Petre, Schmidt
& Bergmann, Philadelphia, Pa. Transferred to John H. Witter,
Newmanstown, Pa., and re-transferred to Federal Cigar Co., Red
Lion, Pa., August 10, 1927.

ALWYN :— 30,433 (Tobacco World). For cigars. Registered Sep-
tember 24, 1914. by Kaufman, Pasbach & Voice, New York, N. Y.
Transferred by Consolidated Litho. Corp., Brooklyn, N. Y., succes-
sors to the original registrants, to Federal Cigar Co., Red Lion,
Pa., February 7, 1934.

LA CITATION: — 40,873 (Tobacco Merchants' Association). For
all tobacco products. Registered October 26, 1918, by American
Litho. Co., New York, N. Y. Transferred by Consolidated Litho.
Corp., Brooklyn, N. Y., successors to the registrant, to E. Regens-
berg & Sons, New York, N. Y., January 11. 1934.

"What a welcome visitor
The Tobacco World
must be to wholesalers and
retailers !

"If they are only half as
interested in reading it as
we ourselves are, we're glad
our ad is in it regularly" —

says an advertiser.

\

V
I I

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la., Pa,
Hanover, Pa.
Cincinnati, Ohio

York Pa

AUTOKRAFT BOX CORPORATION Chicago, iii.

Lima Ohio Detroit. Mich.

A Nat ioi\ Wide Service Wheeling, W. Va.

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WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember that RcBardleii of Ptict

THE BEST CIGARS

ARE PACTCD IN

WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

MARCH 1. 1934

No. 5

The TOBACCO WORLD has signed the President's agreement and
is operating under MR A Code, gladly and wholeheartedly co-operating to
the fullest extent in the Administration's effort to promote industrial re-
covery.

S WE go to i)ross, there arrives a despatch
from Washington stating that exhaustive
hearings on revision of the existing taxes on
to))aceo and tol)acco products will begin ^larcli
rjth before a sub-connnittee of the House Ways and
Means Committee. Representative Vinson, of Ken-
lucky, who made the announcement, will serve as chair-
nuin of the sub-committee, other members of which
will l)e Congressman Shallenberger, of Nebraska, Mc-
Cormack, of Massachusetts, Bacharach, of New Jersey,
and WoodrulT, of Michigan. It is expected that about
live days will be required for the hearings.

J)eclaring that there is a real need for revision of
|)resent tobacco taxes, Representative Vinson pointed
out that while the present six-cent tax on cigarettes
is generally believed to be of wartime origin, it was
not imposed until after the war, being one of the taxes
increased to make up the revenue lost by the adoption
of prohibition. The return of legalized liquor, he be-
lieves, is a sufficient basis for restoration of the tax
to its pre-prohibition status or thereabouts.

Explaining that the committee ** expects to view
this important problem from a four-angle viewpoint —
the grower, the consumer, the tobacco industry, and
the Treasurv," Vinson said in a statement it was his
personal thought "that a substantial reduction in the
tobacco tax and thereby a lessened price of the tobacco
products to the consumer will bring about an increased
consumption of such products and, naturally, a sub-
stantial increase in prices to the farmer because of the
increased demand,"

Cj3 CS3 Ct3

OMING as it did just three weeks to the day
after the meeting of the manufacturer^ called
bv the Tobacco Merchants Association of the
United States, the announcement of this series
nf hearings should prove of absorbing interest to
evervone in tiie industrv. The j)ublicitv which will
result from tiie hearings will serve more than any-
thing else to reveal to Mr. and Mrs. Smoker the dis-
proportionateness of the internal revenue taxes on
tobacco and tobacco jiroducts.

^^^B^^ ^^^^^^m ^^^^^^A

Cj3 Cj3 CJ3

HEY will learn, some of tiiem for the first
time, what the numufacturers, wholesalers and
many retailers have long been cognizant of,
namely, that the major part of the retail price
they pay for their cigarettes, for instance, is not for
the tobacco, the paper, the package, the manufacturing
costs, the sales and advertising expense, nor for all
these items added together, but for the Government

tax. Tell the average smoker that six cents of the
price he pays for a pack of cigarettes goes to the Gov-
ernment as a tax, and, unless you have previously built
up a reputation with him for knowing what you're
talking about, the chances are he'll suspect you of

arbling the facts.

Ct3 [t] Ct]

T WILL be a surprise to the average layman
to learn that tobacco taxes represent approxi-
mately one-fourth of the internal revenue col-
lections from all sources. When he under-
stands that this can be so only because the tax is so
great a part of the price he pays for his smoke, it is
not too much to expect that he will comment on this
new knowledge lo his Congressman, who, in turn, can
patriotically advocate a reduction of the tobacco tax
on the ground that greater sales will result from the
consequent lower retail prices, which will be of benefit
to the grower, the manufacturer, the wholesaler, the
letailer and to the Government itself. For the Gov-
ernment income will grow, not only from the increased
sales of stamps, even though at a lower cost, but also
from the revenues arising from the increased business
all the wav down the line.

• Cj3 CJ3 Cjl

T IS very interesting to mark the trend of the
tobacco trade in the United States. The year
that has just closed had many doleful days for
tobacco manufacturers, and retailers have felt
the high wind of adversity which was intensified by an
abnormal increase in price-cutting. The latest reports
indicate a feeling of optimism. There is a forward
move in connection with the Code proposal, and the re-
moval of the discredited Prohibition Law has given
an extraordinary impetus to the tobacco trade. There
is one lesson which tobacconists in these countries can
learn from the trade revival in the United States, and
it is that a spirit of co-operation and sound leadership
are essential features if better times are to be experi-
enced." Those words, gentlemen, are from the Irish
Tohaccn Trade Journal, the only publication in Ire-
land devoted to the tobacco and allied trades. They
arc rejirinted here because the lesson which the Irish
trade is asked to learn from the editor's long-distance
view of the situation in this country is the very same
lesson which the industry in this country must learn
and act upon: **A spirit of co-operation and sound
leadership are essential features if better times are
to be experienced."

Here's hoping that the Code will be adopted soon
after the end of the NRA conferences in Washington
on March 8th, so that planning and action may go
ahead, unhampered by any doubts as to what has been
finally determined upon to be for the greatest good
of the greatest number in the industry.

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankms, President and Treasurer;
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street. Phitadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year. 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

Adjustment Program for Puerto Rico

Review of Foreign Tobacco Markets

TOBACCO adJustinoiU piograiii for Puerto
Rico, which will mean the distribution of ap-
l)roximately $1,750,000 in benefit payments to
growers in 1934 and 1935, has been announced
by the Agricultural Adjustment Administration.
Under this program growers of cigar-filler, type 46,
tobacco in Puerto Rico will be olTered contracts for
reduction of the crop being harvested, and on the
acreage to be planned next season.

A representative of the Agricultural Adjustment
Administration has been in Puerto Rico for the past
several weeks studying the ]irobleni of the growers.
The current crop is now being harvested and is ex-
]iected to yield 25,000,000 pounds, which would increase
the present large carry-over. As a result of this sur-
plus condition,"Puerto* Rico cigar filler, which consti-
tutes 15 to 20 per cent, of the cigar tobacco consumed
in the United States, is selling about 30 per cent, be-
low fair exchange value. Practically aU of this to-
bacco is sold in the United States.

The contract to be offered will require growers
to leave unharvested all of the second and third crops
of tobacco on their acreage this season. Growers will
also be asked to reduce the acreage planted for the
1934-35 crop by either 40 per cent, or 25 per cent, of
the base acreage. If the 25 per cent, reduction is
chosen by a grower, he will be permitted to harvest
but one crop from the acreage grown. If the grower
elects to reduce his acreage by 40 per cent, he may
take a second harvest from his crop.

The contract offers growers two choices as to
base acreage, which mav be either the average planted
to tobacco in the crop years 1929-30, 1930-31, 1932-33,
and 1933-34, or may be 85 per cent, of the average
planted in any three of those crop years.

The contract will give the Secretary of Agricul-

ture the privilege of requiring acreage reductions in
1935-36 simihar to those in 1934-35. In the event this
option is exercised, growers will receive rental and
adjustment payments on the same basis as those re-
ceived for 1934-35.

Under the terms of the contract growers who par-
ticipate will receive payments for leaving unharvested
the second and third tobacco crops this season, at the
rate of $10 per cuerda (1.01 acres) where the crop is
luu'vested by "priming", or picking individual leaves
without disturbing the stalk. Payments will be made
at the rate of $15 per cuerda where the crop is har-
vested bv stalk-cutting. l\nvments in the 1934-35
])rogram will be on the basis of a rental payment of
$30 i)er cuerda on land taken out of tobacco, in addi-
tion to an adjustment payment equal to 30 per cent,
of the market value of the crop grown in 1934-35.

The payment to growers this season will be dis-
tributed as soon as proof that the grower has de-
stroyed his second and third crops has been submitted
and ai)i)roved. The first payment in next year's ad-
justment plan will be made after contracts have been
approved and accepted. The second payment will be
made after proof of compliance.

If all tobacco growers in Puerto Rico participate
in the program there would result a 15 per cent, re-
duction in the present crop, and a 33 per cent, reduc-
tion in the 1934-35 crop. Thus production for the
present year would be approximately equal to con
sumption, while the crop next season would be about
20 per cent, below consumption, bringing about a sub-
stantial reduction in the carryover of old tobacco.

The tobacco adjustment program for Puerto Rico
is the first program to be announced for insular pos-
sessions or territories under the Agricultural Adjust-
ment Act.

Nearly All Burley Growers in Campaign

ETWEEN 91) and 95 per cent, of Burley tobacco
growers in the United States have agreed to
curtail 1934 production under Agricidtural Ad-
justment contracts, it was indicated by the first
compilation of results from the sign-uj) canqjaign which
was closed officially February 17th. The reduction as-
sured by the contracts will limit the 1934 crop to
approximately 250,O()0,00t) pounds, according to J. B.
Ilutson, chief* of the Tobacco Section. (J rowers, under
the contract, may reduce either one-third or one-lialf
from their base.

Total benefits, including rental and adjustment
payments, which will be distributed to participating
growers, w^ll approximate $15,000,000. These benefits
are to be derived from processing taxes on tobacco of
this type. The first rental payment of .$20 per acre on
land taken out of ])r(><hK'tion will be made to contract-
ing farmers as s<jon as contracts are examined and
accepted.

The first adjustment payment, which will be equal
to at least 10 per cent, of the net sale value of the 1933
crop on farms covered by contract- tailing for a 'S3%
per cent, reduction, and at least 15 per cent, of the net
sale value of the 1933 crop on farms covered l»y con-
tracts calling for a 50 per cent, reduction, will be made
about September, 1934.

The second adjustment payment, which will be not
less than 15 per cent, of the net sale value of the 1934
crop under the first type of contract, and not less than
35 per cent, of the net* sale value of the 1934 crop under
the second type of contract, will be made after the 1934
crop has been marketed.

The percentages of sign-up in the various states,
as estimated from the first tabulations of the extension
directors, are as follows: Kentucky, 92 per cent.;
Tennessee, 90 per cent. ; Ohio, 91 i)er cent. ; Nortli ( 'aro-
lina, 95 per cent.; West Virginia, 50 to GO per cent.;
Virginia, 95 per cent.; Indiana, 75 per cent.; and Mis-
souri, 86 per cent.

Kentucky, Tennessee and Ohio are the largest pro-
ducers of Burley type tobacco. According to Mr.
Ilutson, growers in these States apparently favored
the one-half reduction plan, while growers in the other
States appeared to favor tlie one-third reduction plan.

The sign-up of contracts for limiting production on
lire (urctl and dark air-cured tobacco will probably
come to a close during the early part of March, accord-
ing to Mr. Ilutson. The exact date will be announced
later. The sign-up in areas producing these types of
tobacco w^as begun at a later date than the signing of

growers in the Burley areas.

Th4 Tobacco World

■^^sM ITII increases of 6.75 per cent, in volume, 17.8
AaW P^^* ^^"^- "^ average value per hundred ])Ounds,
and 25.8 y)er cent, in total returns to American
shippers, the leaf tobacco trade of the United
States with foreign countries during 1933 recovered,
in part, the volunie and value lost to the tobacco trade
(luring 1932. As reviewed by the Tobacco Division,
Department of Commerce, exports of leaf tobacco dur-
ing 1932 were 84,265,725 pounds, or 17 per cent., less
than the average during the five years 1922-1926, and
142,000,000 pounds, or' 25.8 per cent., less than the
average during the five years 1927-1931. Total ex-
ports of leaf tobacco from the United States to all
toreii2:n countries during 1933 amounted to 438,936,121
pounds, and the total return to American shippers
amounted to $82,924,212 or an average of $18.89 per
hundred pounds. Compared with others, during the
twelve-year period of 1922-1933 inclusive, with the ex-
ception of 1932, the year 1933 was a lean one in both
total quantity and total value; however, the downward
trend was broken.

The trend in average price per hundred pounds
has been decidedly downward since 1922. The average
price that year was $33.15 per hundred pounds and
the average piice during the five years 1922-1926 was
$30.47 per hundred pounds. During the next five years,
1927-1932, the average price was $25.19 per hundred
pounds, the low year being that of 1931 when the
average was $21.12. The 1932 average was $5.09 below
1931 and registered $16.03. In the ten years following
1922, the average price fell from $33.15 to $16.03, a
decrease of $17.12 per hundred pounds, or nearly 52
per cent.

Although the volume of leaf tobacco exported from
the United States followed an upward trend from 1922
through 1930, the total return to American shippers
in 1930 was approximately a million dollars less than
the return in 11^22, in keeping with the downward trend
in average price. During 1931, total exports were
55,231,793 pounds below 1930, and shippers received
$35,029,628 less in return.

The value of all leaf tobacco exported during 1922
was $146,489,101 and the value in 1930 was $145,609,-
209. The peak year of the period under review was
1924, when the value registered $164,129,745. The low
average in 1931 and the low return of $110,779,581 that
vear reduced greatly the live-year average of 1927-

1931, inclusive, when compared with the previous five-
vear period. The extremely low average of $1().03 pt'i
liundred pounds for all leaf tobacco exported during

1932, coupled with the low volume of 411,159,483
])Ounds, registered a return of $65,901,574, or approxi-
mately 45 per cent, less than that of the return in 1922,
and approximately 40 per cent, less than that of the
peak year 1924.

As before mentioned, 1933 exports of leaf tobacco
recovered in volume exported, average price per hun
dred pounds, and in total return to American shippers.
At this time, it is impossible to forecast what 1934
will bring forth. It may be considered, however, that
foreign buyers have been purchasing to cover im-
mediate needs only and, at the same time, foreign
manufacturers have exhausted not only their own stor-
age stocks of American tobacco but the normal stocks
uf American tobacco held usually by importers and
dealers, in most markets.

March I, 1934

(lERMANY — The market for American tobacco in
Germany during the calendar year 1933 was generally
({uiet, according to a report from American Consul
W. A. Leonard, made public by the Tobacco Division,
Department of Commerce. Although the demand im-
proved during the last few months of the year, transac-
tions did not reach the level of 1932.

American tobacco imports into Bremen during
1933, according to preliminary statistics, amounted to
15,322,600 pounds, as compared with 19,292,000 pounds
during the preceding year of 1932, thus showing a de-
crease of 3,969,400 pounds or about 20 per cent. The
decrease in the imports during the early part of the
year was largely accounted for by a shortage of suit-
able grades of tobacco available for Bremen. Later
in the year, exchange difficulties handicapped the im-
portation of tobaccos into Bremen, and relatively
higher prices for the American product brought about
some substitution of other grades for American
tobacco.

The total imports of tobacco into Bremen from
all parts of the world during the calendar year 1933
increased by approximately one-third when compared
with the immediate preceding year of 1932. Imports
during 1933 totaled 67,728,878 pounds, as compared
with 51,125,350 pounds during 1932. The imports of
American tobacco constituted approximately 23 per
cent, of the total tobacco imported via Bremen from
i\\\ parts of the world during the year 1933, as com-
pared with about 40 per cent, in the immediately pre-
ceding year.

The market for bright Virginia tobacco was gen-
erally quiet during the first eight months of the year,
due to a premature exhaustion of the 1931 and 1932
crops. However, the market became active after the
arrivals of the 1933 crop grades during September and
good sales are reported to have been effected during
the latter part of the year. Prices of the 1933 crop
showed an upward trend and increased by approxi-
mately 50 per cent.

Transactions in the market for dark Virginia to-
bacco during 1933 are reported to have been smaller
than in 1932, due to the 1932 crop providing only small
quantities of wrapper and spinner grades suitable for
European purposes. The shipments of suitable grades
for the Bremen market of dark Virginia tobacco which
arrived during the year found ready buyers. As is
well known, certain types and grades of American to-
bacco are considered particularly suitable for the
European trade. The market for dark Kentucky
tobacco was quiet during the greater part of 1933, due
to only small shipments being made during that time.
Business improved somewhat when the 1932 crop ar-
rived, but this crop supplied cmly a small quantity of
leaf grades suitable for German purposes, the ship-
ments of which were readily taken up on arrival.

Burley, ^Maryland and Ohio tobaccos are reported
to have shown a decline in the market during 1933.
Importers state that only small sales have been effected
to German and other European manufacturers. Seed-
leaf tobacco, which has not been otTered in the Bremen
market during recent years, was again imported in
small quantities.

CUBA— In 1933, Cuba exported 29,504,143 pounds
uf leaf tobacco, as compared to 36,355,658 pounds in
1932, according to a report from American Consul Lee

E. Blolim, made public by the Tobacco Division, De-
partment of Commerce. Other exports Avere as fol-
lows: Cii^ars 36,831,551 pieces (28,563,695 in 1932),
cigarettes 30,792,038 pieces (41,388,248), and smoking
tobacco 122,220 pounds (152,235). The total value of
all tobacco exported in 1933 was $13,395,306, compared
with $12,926,270 in 1932.

The United Kingdom and Spain were by far the
most important destinations of cigars exported from
Cuba, having taken together about 78 per cent, of the
total cigar exports, followed by France, the Ignited
States, and others.

Final estimates issued by the Cuban Tobacco Com-
mission (Comision Xacional de Propaganda y
Defensa del Tabaco Habano), place 1933 production of
tobacco in Cuba at 36,352,032 })ounds, or 272,772 bales,
against 34,692,957 pounds, or 254,154 bales, in 1932.
Tiiis is an increase for 1933 of 18.618 bales or 7.3 per
cent, over 1932. The 1933 area planted was 45,474
hectares, comi)ared with 37,773 in 1932.

Fair prices were received, until recently, for lower
resagoes and bancos of the Partido crop. Sales of
octavos and third capaduras of the Kemedios crop have
been ranging from ten cents to twenty cents per pound.
Lower classes of Remedios are selling at nuich higher
prices than last year. Stennned and unstemmed filler
leaf tobacco of the Santa Clara crop are otTered for
export around twenty-live cents and forty-five cents
])er j)ound respectively. Lower grades {»f tobacco from
the various Vuelta Abajo sections have been sold at
very good prices. Good tobacco leaf has not been
moving as well as the lower grades in all varieties as
the market cannot now absorb the higher priced weed.

Production for 1934 will, from present indica-
tions, be smaller than for many years in all five dis-
tricts, including Remedios. Too much rain fell in the
autumn to permit the planters to pre})are and seed
the ground, and although the crop may still be of good
quality in some sections, it cannot be large. Farmers
in all these areas, including the Partido, have been
gratlually reducing their acreage as a result of the
smaller demand from year to year and lack of financial
means to seed even the normal acreage. In 1!KU, it is
stated, planters will be obliged to depend more on their
o\m financial resources, foreign capital, employed to
a large extent in previous years, having been discour-
aged by internal disturbances in the island. In addi-
tion, efforts are being made to raise wages in general
in all Cuban industries, supporting the program of the
labor svndicates.

The labor situation in the to])acco industry con-
tinues to be highly involved. The struggle is between
imions and not between unions and the cigar com-
l)anies. The unions, through the dock workers, are
making use of the boyeoit as a weapon. The govern-
ment has not yet taken the necessary measures to
settle the controversy. In the meantime, the exjjort
maiket situation is demoralized and shii)ments of
cigars as well as of leaf tobacco can only In- made
through permission of the syndicate of harbtn- workers.
Leaf tobacco, both stemmed and unstemmed, may still
be shipped, though boycotts have also been threatened
against any dealers not employing union men.

Tobacco circles in Habana show much pessimism
regarding the tobacco industry in general. I\e1ailers
declare that they are making very few sah'^ in th(!
doiriestic market, warehousemen comi)laiii that the
moveijieiii of leaf tobacco has never been so slow, cigar
manufacturers contend that they have been obliged to
curtail production because of the difficulty encountered

in loading cargo for export, and cigarette manufac-
turers show a steady drop in sales since January 1,
1932.

IUUjGARIA — Preliminary estimates show that
total eximrts of leaf tobacco from Bulgaria at the end
of 1933 will attain approximately 20,100,000 kilograms,
valued at over 1,055,000,000 leva, as compared with
20,492,000 kilograms, valued at 1,078,049,000 leva in
1JI32, and 24,587,000 kilograms valued at 2,579,730 leva
in 1931. American Consul Jolm McArdle states, in a
report reviewed by the Tobacco Division, Department
of Connnerce, that figures show^ 1933 exports to be
slightly lower both in quantity and value than those
of 1932, and considerably below those of 1931. Normal
exports usually amounted to about 25,000,000 kilo-
grams, valued at aj)i)roximately 3,000,000,000 leva. Ex-
})orts in 1933 and 1932, therefore, attain but approxi-
mately one-third of the value of exports in normal
vears.

The 1933 tobacco crop of Bulgaria is estimated at
approximatelv 22,900,000 kilograms, considerablv
above that of*1932, 17,200,437 kilograms. It was, how*-
ever, much below the crops of normal years, which
usually totaled between 25,000,000 and 30*000,000 kilo-
grams.

Planting and the gathering of the leaves were
delayed about a month, because of cold weather.
Climatic conditions improved later, and drying was
completed under favorable circumstances, with the ex-
ception of the third picking which suffered in certain
regions from the autumn rains. The crop was below
the expected quantity of 25,000,000 kilograms, the bet-
ter grades which are gathered on the third picking
have been mainlv affected.

Purchase prices in the second half of 1933 aver-
aged somewhat over 10 per cent, above those prevail-
ing in the first half of the year, ranging from over 10
leva per kilogram for the low grades to approximately
iifty leva per kilogram for the best grades. The greater
l)art of the 1932 cro}), however, was sold at an average
of twentv to thirty leva per kiloLrram.

(JRHAT inUTAIN— Figures given in the Annual
Rej)ort of the i^ritish Customs and Fxcise for the liscal
yeai- ending March 31, 1!K]3, reviewed by American
Trade Commissioner .lames Somerville, Jr., in a re-
]*oit to the Tobacco Division, Department of Com-
merce, show a gradual increase, over a ten-year ])eriod,
in the (plant ities of Empire tobaccos consumed, that is,
from 9,3f)9,236 pounds in 1923-24 to 32,499,059 pounds
in 1932-33. The largest single advance was in the last
year of this period, which showed an increase (»1 4,619,-
7Ch) pounds. This increase was unexpectedly large,
and is explained as having been *' stimulated" by the
1931 increase in duty, which, for the most part, the
tobacco trade did not ])ass on to consumers in in-
creased prices. The chief cause of the advance of
Ismpire tobaccos was the advantage which they have
enjoyed of a preferential duty.

The (plant ity of foieigii tobacco retained for con-
>inni)tion in 1932-33 was 11s,Ol>7,457 pounds, which
compares with a figure of 119,440,834 for the year
1923-24. The increase which has taken iilace in the
total consumption of tobacco during this period from
128,810,070 pounds in 1923-24 to 150,526,516 in 1932-33,
has been entirely to the advantage of Empire tobacco.

It is noted that the l^oard of Trade import re-
turns for the eleven months ending Xoveniber 3oth
suggest that a steady advance in the relative im-
portance of Empire tobacco im|»orls has been checked

(Continued on Page 10)

Tht Tobacco World

The Effects of Cigarette Smoking

Upon the Blood Sugar

By Profs. HOWARD W. HAGGARD and LEON A. GREENBERG
Laboratory of Applied Physiology, Yale Univsrsity

HE gratilication derived from smoking has
always been rather a mystery. Exactly what
elements in the smoke exert the x^leasurable
physiological effects has never been deter-
mined, nor precisely what these effects are. Numerous
theories have been advanced. But these theories
merely show how little is known.

Tobacco ditTers from other leafy vegetables in its
characteristic alkaloid. That alkaloid, nicotine, is
named for Jean Nicot, who introduced tobacco chew-
ing to Catherine de Medici. Nicotine is a ])owerful
<lrug. It paralyzes nerve ganglia when ap])lied di-
rectly to them. * But it has not been shown — and it is
on the whole imi)robable — that this i)roperty of nico-
tine accounts for the elTects of to])acco smoking.

Chemists have pointed to the carbon monoxide in
tohacco smoke and have suggested that it is a cause of
the ill eirects, if not the pleasure, of smoking. But in
fact a heav>' smoker accunmlates less carbon monoxide
than does the non-smoker who takes a walk on Fifth
Avenue, New York, during the hours of heavy auto-
mobile traffic.

Other products of combustion, notably pyridine,
have likewise been suggested; but they occur, not only
in tobacco smoke, but also in the smoke from othei
vegetable matter, such as corn silk, maple leaves and
colTee beans. That these substances do not contribute
ai>i)reciably to the gratification of smoking is con-
clusively demonstrated by the fact that few smokers
adhere to the juvenile substitutes for tobacco. Such
substitutes are cheap, yet tobacco maintains its jxipu-
laritv. AVhy tobacco!

The answer we believe is nicotine. Smoking, we
find, produces a definite, although temporary, increase
in the concentration of blood sugar, and a correspontl-
ing increase in the rate of sugar combustion in the
body. These elTects are certainly due to the nicotine
of the tobacco and they arise from the action of this
alkaloid upon the adrenal glands. There can ])e little
doubt that this is the source of at least a considerable
part of the gratification from smoking.

Our observation of the hyperglycemia from smok-
ing occurred by chance. We had been investigating
the (piestion of the optimum mealtime interval — how
often should children, college students and industrial
workers be fed. To this end we determined the re-
rpiratory quotients at hourly intervals during the day,
on several hundred subjects. In a number of cases
the concentration of sugar in the arterial blood was
('omi)ared with the respiratory quotient.

On some days the subjects fasted; on others they
ate from one to five meals, variously space<l. As \yas
to be expected, the respiratory (luotients of the fasting
subjects fell to values between .78 and .82 and the
hlood sugar to .08 and .10 per cent. In the subjects
who ate, both the respiratory quotient and the blood
sugar rose after the meal; but within two to four
hours, if another meal was not taken, it fell again to

March i, 1934

the fasting level. AVhen this fasting level was reached,
it was maintained in a great majority of the subjects
with little change for many hours. A few, however,
exhil)ited sudden fluctuations of considerable magni-
tude in both the respiratory quotient and blood sugar.
Such fluctuations never occurred among the chil-
dren. All the adults were free from emotional dis-
turbances which might explain them. A search for
the cause of the divergent values suggested that it was
associated with smoking.

The respiratory quotients and blood sugars be-
fore and after smoking were then studied in a number
of subjects. The results showed that when the re-
si)irat()ry quotient is above .85 and the blood sugar cor-
respondingly above .13 per cent., the smoking of a
cigarette has no appreciable influence upon either.
When, however, the respiratory quotient and blood
sugar have fallen below these values, and especially
when the fasting level has been reached, the smoking
of a cigarette is followed by a rise in both. Values are
attained within fifteen minutes as high as .85 or .90
for the respiratory quotient and .12 or .14 per cent,
for the sugar. During the next thirty nunutes the
values fall gradually to, or slightly below, those ob-
served before the cigarette was smoked.

It is a well-known fact that injection of nicotine
into animals is followed by a temporary rise in blood
sugar. But so far as we can find no one has previously
reported a similar rise in man resulting from the nico-
tine of tobacco smoke.

From animal experimentation it is well established
that it is the action of nicotine upon the adrenal glands
which leads to the hy]ierglycemia. The rate of dis-
charge of adrenalin is increased; and the liberated
adrenalin exerts its characteristic gycolytic action.
The glycogen stored in the liver and muscles is con-
verted into sugar. In consequence the concentration
of sugar in the blood is increased. Secondary to the
rise in sugar the combustion of carbohydrate is in-
creased and can be observed in the increase in the
value of the respiratory quotient. But, as already
stated, these metabolic effects do not result from smok-
ing when the blood sugar is at a concentration above
.13 i)er cent., as it is for two or three hours following
a meal.

The acceleration of sugar metabolism thus demon-
st rated affords a possible explanation for the fact that
smoking diminishes hunger in many users of tobacco.
Hummer appears from our observations and those of
other investigators to arise within a definite time after
the blood sugar falls to the fasting level. Tobacco
smoking, by inducing a hyperglycemia, temporardy
relieves these conditions.

Note. — The foregoing is reprinted, because of its
interest to the trade, from the February 16th issue of
Science, the official journal for American scientific an-
nouncements.

TOBACCO PRICES STRONGER

UV] prices of nearly all types of tobacco showed
considerable strengthening during Janufiry. In
the case of Bnrley, tlie most important type
marketed at this season, the prices declined
untd about the middh> of the month, but subsequently
advanced sufiiciently so that the average for the entire
belt, based u])on weekly reports of sales supervisors at
auction floor markets, during the week ended February
loth was around 11.5 cents per pound, which was nearly
back to the level of the ojiening week of the season.
Reports of the Bureau of Agricultural Economics grad-
ing service iiidicate that prices on a grade ])asis have
advanced more than market averages, as some decline
appears to have taken ])lace in the ipiality of tobacco
offered on the market. The avei-ane price for all sales
in Kentucky during January of this year was 10.5 cents
l)er pound," compared with 12.0 cents for January last
year, and 8.6 cents for January, 1932, according to
State reports.

Dark air-cured tobacco and the so-called AVestern
fire-cured ty])es showed the greatest increases in price
this vear, according to State reports. During January
of tliis year. Green River (Type 3G) tobacco averaged
10.1 cents per pound, comi)ared wilii :>.4 cents last Jan-
uarv and 3.3 cents two years ago. One-sucker (Type
35) 'tobacco averaged 6.7 cents per i)ound, compared
with 5.0 cents last January and 3.1 cents two years ago;
Virginia sun-cured (Type 37) averaged 8.4 cents dur-
inii' January, compared with 7.0 cents last January and
5.6 cents two years ago. Prices for the latter type have
advanced greatly during the last two weeks and are
now reported to be averaging above 12.0 cents per

])ound.

Among the fire-cured t^-pes, KentTickT sales during
Januarv this vear averaged 9.8 cents per pound in the
Clarksville-Hopkinsville district (Type 22), 5.4 cents in
the Paducah district (Tyjje 23), and 5.4 cents in the
Henderson district (Type 24). These prices are from
32 per cent, to 196 per cent, higher than the correspond-
ini? prices for last season and are from 150 per cent, to
245 per cent, higher than those for the 1931-32 season.
• Onlv the Virginia fire-cured type, of which a large per-
centage of tiie 1933 crop was damaged by storm, has
had prices this year below those of last year. The aver-
age for January, 1934, was 6.9 cents i)er pound, com-
pared with 8.9 cents a year earlier and 4.7 cents in 1932.
Prices for flue-cured tobacco during Jaimary de-
clined seasonally and averaged 14.4 cents i^er pound
for the month, compared with 17.2 cents for December,
1933, according to State reports. The January aveiage
thi^ vear compares with 7.3 cents for January last year
and 5.9 cents for January, 1932. Apiiroxinuitely 98 ])er
cent, of the 1933 flue-cured crop is reported to have
been sold prior to P^ebruary 1st, with n crop average
of around 15.25 cents per pound.

The Agricultural Adjustment Administ rat ion
brought additional influences to bear upon tobacco
prices during January. Three new marketing agree-
ments were negotiated during the month, applying to
the fire-cured and dark air-cured types of tobacco, thus
bringing under marketing agreements all the major
T'nited States tobacco types, except cigar leaf. Prelim-
inary steps have been taken to work out agreements
for the cigar types. Under the agreements covering
the fire-cured and dark air-cured types, as under the
flue-cured and Burley agreements, each of the leading
domestic buyers agreed to make purchases at least
equal to the quantify which it manufactured last year,

at prices not less than specified minimum averages. In
addition, one of the agreements provides that no to-
bacco of any of the fire-cured or Green River types
shall be purchased on an auction floor market below a
lixed minimum price. Manufacturers of tobacco by-
])roducts have contracted to take all such tobacco for
which no price bid is received on the market, up to a
maximum of 17,000,000 pounds, at an agreed price to
the grower. This tobacco is to be used only in the man-
ufacture of nicotine, fertilizer or tobacco extract, thus
removing it from ordinary commercial channels.

The use of tobacco in the manufacture of tobacco
products, which is indicative of consumption, was
slightly larger during December, 1933, than during De-
cember, 1932, according to reports of the Conunissioner
of Internal Revenue. The number of tax stamps issued
for use on manufactured tobacco (smoking and chewing
cond)ined), was 8 per cent, smaller than in Decend)er,
1932, ami the number issued for snuff was 24 per cent,
smaller. However, in the aggregate, these declines
were slightly more than offset by a 7 per cent, increase
in the number of stamps issued for cigarettes and a 10
])er cent, increase for cigars.

Exports of leaf tobacco from the United States in
December, which totaled 60,800,000 pounds, were more
than double the exports of Deceml)er, 1932, and the
largest for any corresponding month since 1929. Ex-
cejit for October, 1933, this was the second largest for
any month during the last four years. Most of the in-
creased exports took place in flue-cured tobacco, for
which the quantity exported was 53,300,000 pounds,
compared with 22*500,000 pounds in December, 1932,
and a five-year average for December of 48,000,000
pounds. However, the December exports of all other
types of tobacco, except Virginia fire-cured, showed in-
creases over December, 1932.

"NEWSNAGLE AND BUDD'S STOOPREEL"

HE RADIO PREMIERE of **rolonel Stoop-
nagle and Budd's Xewsreel of the Air," the
ColonePs weird discovery of **naf" letters,
and the incomparable songs of Connie Boswell
were highlights of the Camel Caravan, featuring Glen
(Jrav's Casa Loma Orchestra over the WABC-Colum-
bia network on Tuesday, February 20, and Thursday,
Februarv 22, from 10 to 10:30 P. M., Eastern Standard

I ime.

The (^olonePs *'naf" letters were introduced on
Tuesday's program. "Naf " (n-a-f) letters are the re-
viMse of ''fan" (f-a-n) letters, and the Colonel is de-
termined to write regularly to those of his listeners
whom he meets on the street, lie broadcast his first
sheaf of "naf " letters under strong police guard. On
the same i)rogram Connie Boswell sang "On the Wrong
Side of the Road" and *'I Just Couldn't Take It,
Babv." Kenny Sargent sang "Under a IManket of
Blue'" and the Casa Loma Band played "I Never
Knew" and "Mr. Rhythm Man."

On Thursday came the world premiere of "Xews-
naule and Budd's Stoopreel of the Air," thrilling
dramatizations of great events that will never occur
and little known happenings that don't nuike much dif-
ferenci' anvwav. Connie Boswell 's warm Southern
voice was heard in "I Had to Change the Words" and
"Without That Certain Thing," while the orchestra
featured "Temptation," "I Got the Jitters," "Girl
Friend," and **01d Man River."

Th4 Tobacco World

Those penciled scrawls

are a sign of jangled nerves

If you're the stolid, phlegmatic sort of person
who doesn't feel things very deeply, you'll
probably never have to worry about nerves.
But if you're high-strung, alive, sensitive,
watch out.

See whether you scribble things on bits of
paper, bite your nails, jump at unexpected
noises — they're signs oi jangled nerves.

So be careful. Get enough sleep-
fresh air — recreation. And make
Camels your smoke.

For Camel's costlier tobaccos never
jangle your nerves — no matter how
steadily you smoke.

COSTLIER TOBACCOS

Camels are made from finer, MORE EXPENSIVE
TOBACCOS than any other popular brand of cigarettes !

Here is a series of numbers. Two
numbers in this series contain the
same digits . . . but not in the same
order. See how fast you can pick
out these two. Average time is one
minute.

Frank J. Marshall {Camel smoker), chesi

champion, picked the two numbers

in thirty seconds.

Copyrlglit. 1 KiL 11. J. lU.viiulUs Tobacco Loiiipnii/

SMOKE AS MANY AS YOU WANT...
THEY NEVER GET ON YOUR NERVES!

•.»■» I^ll CAMEL CARAVAN featuring GUn Gray-. CASA LOMA Orch..tra and oth,r H^adlinyjEv.ry Tu^, day and
TUNE INI Thur^ayatl9P.M.,E.S.T.~»P.M..C.S.T.-aP.M.,M.S.T.-7P.M.,P.S.T..ov.r WABCColu^b.a Network

March i, 1934

9

All Tobacco Products Increase in January

HE following comparative data of tax-paid
products, indicated by the monthly sales of
stamps, are issuetl by the Bureau (Figures
for January, IIK'U, are subject to revision un-

til published in the annual report):

Prnducts

Cigars (large) :

Class A No.

Class B Xo.

Class C Xo.

Class D Xo.

Class E Xo.

Total

Cigars (small) ....Xo.
Cigarettes (large) .Xo.
Cigarettes (small) Xo.

Snuft", mf d Lbs.

Tobacco, mfd Lbs.

lOSi 1933

— January —

3U0,24<),320

2,447,133

32,I)():),r)()8

l,r)()l,S23

127,1)17

256,560,730

2,008,187

35,431,358

2,309,301

330,630

337,291,761 296,640,206

20,343,507

8,000,050

11,483,341,893

3,234,989

27,611,491

17,497,320

253,700

8,(522,222,367

3,033,44()

24,752,091

Tax-paid products from Puerto Kico (not included

in above statement) Avere as follows:

— January —
Products 1934 1933

Cigars (large) :

Class A Xo. 2,517,830 2,665,650

Class B Xo. 2,500 17,000

Class C Xo. 49,500 9,000

Total

2,569,830

2,691,650

Cigars (small) ....Xo.
Cigarettes (large) .Xo.
Cigarettes (small) .Xo.

110,000
300,666

20,000
200,000

Tax-paid products from the Philippines (not in-
cluded in above statement) were as foHows:

— January —

Products
Cigars (large) :

Class A Xo.

Class B Xo.

Class C Xo.

Class D Xo.

Class E Xo.

Total

1934

19,111,955

24,420

20,186

5(K)

20

19,157,081

1933

8,777,655

63,797

16,338

526

61

Cigarettes (large) .Xo.
Cigarettes (small) .Xo.
Tobacco mfd Lbs.

• ■ • •

121,370

8,858,377

312

431,080

20

Comparative Statement of Internal Revenue Collec-
tions for the Month of January

Sources of revenue 1934

Cigars $844,527.26

Cigarettes 34,508,175.07

Snuff 582,297.99

Tobacco, chewing and

smoking 4,970,241.49

Cigarette papers and

tubes 68,969,77

Miscellaneous, r e 1 ating

to tobacco : . . 373.20

1933
$756,431.49
26,087,481.23
546,020.32

4,488,877.72

81,611.70

75.94

Withdrawals for Previous Januaries.

1920 663,634,243

1!)21 462,798,039

1922 443,260,802

1923 559,183,38()

1924 504,023,80!)

1925 474,803,054

1926 433,672,942

1927 466,078,254

1928 413,531,675

1929 427,715,807

1930 418,900,080

1931 362,939,318

1932 342,923,509

Processing Tax Returns

Detail of collections from processing and related
taxes proclaimed by the Secretary of Agriculture un-
der aiithoritv of the Agricultural Adjustment Act
(Public— Xo.* 10— 73d Conufress), approved May 12,
1933:

Total
from July 1,
Month of 1933 (Fiscal
Commodity January, 1934 year 1934}

Tobacco (tax etfective Oc-
tober 1, 1933)

Processing tax .$2,485,271.01 $5,428,913.72

I m port com])ensating

taxes 17,747.57 77,710.36

Floor tax, other than

retail dealers 66,303.87 1,786,578.03

Floor tax, retail dealers 11,076.34 234,070.47

Total, tobacco $2,580,398.79 $7,527,272.58

UNITED PAYS $6,000,000 FOR WHELAN CO.

Assets of the Whelan Drug Co., subsidiary of the
United Cigar Stores Co., and trading under the name
of Retail Chemists Corp., wei'e recently sold to the
United Cigar Stores Corp. of Delaware for $6,000,000.
field Corp. was rejected aas inadeciuate.

The purchase was made ])y the Irving Trust Co.,
as trustee in bankrui)tcy for the United Cigar Stores
Co. An ojijiosing bid of $5,179,000 made by the Bran-
lield Cori)oration was rejected as inadequate.

Andred Christ ianson, an official of the receivership
department of the Irving Trust Co., explained that
the oifer of the United was equivalent to a cash bid
and would mean a return of a 50 per cent, dividend
to the creditors of the KiMail Chemists Corp.

IMPERIAL TOBACCO OF CANADA REPORTS

The Imjierial Tobacco Co., of Canada, Ltd., re-
ports for 1933 net profit of $5,670,176 after charges
and taxes, equal after 6 per cent, dividend on the pre-
ferred, to fifty-five cents a share on 9,451,032 shares of
common stock. This conqiares with $5,471,175, or fifty-
tliree cents a common share in 1932. Tliis does not
include the j)roj)ortion of the company's undivided
profits of su))sidiary and associated conq)anies.

10

ZIFFERBLATT ON MIDWEST TRIP

George Stocking, of Arango y Arango, w^as in
town last week and reported business on the Don
Sebastian line increasing steadily and beyond their
expectations. Mr. Stocking is leaving this week for
Florida where he will visit factory headquarters in
Tampa, and laugh at us poor mortals trudging through
the ** beautiful" snow up north.

The Tobacco World

THE HEIGHT OF GOOD TASTE

ofu/ ^ €ia€irette4 too — 3^/e id St>eiy>Uu^

ALWAYS tAe &ifie6t SoSacco cmdOWiXtJie (3mter .^£ea4^

March i, 1934

n

News From Congress

F£DEI

Departments

XTENSION to small industries of the financial
aid of the Reconstruction Finance Corporation
is contemplated in a bill introduced in Consjress
by Senator Reynolds of North Carolina. Under
this measure, credit would be made available to indi-
viduals and business concerns engaged in commercial,
manufacturing or industrial enterprises upon the same
terms and conditions as are applicable to loans made
by the corporation to financial institutions.

The Federal Reserve Council is said to have given
approval to the creation of a system of intermediate
credit banks for the granting of credit of the character
favored bv the North Carolina Senator, but through a
different method of approach to the problem.

Chairman Jesse H. Jones of the Reconstruction
Finance Corporation is not particularly friendly to-
ward turning that organization into a direct lending
a"-encv, preferring to have credit provided through pri-
vately operated agencies. The intermediate credit
bank'plan, it is believed, would satisfactordy meet the
situation.

Ct3 Ct3 Ct3

ilHE REPORT of the House Ways and Means
Committee on the new tax bill indicated that
the Treasury Department anticipates a 100 per
cent, improvement in business by June 30, 1935.
Total tax receipts from all sources during the fiscal
vear ended June 30th last, it was sho^v^l, amounted to
i2 079,696,000. For the current fiscal year, the com-
mittee reported, the Treasury anticipates a revenue ot
$3,259,938,000, and for the fiscal year 1935 tax receipts
are placed at $3,974,665,000, or practically double those

of 1933. «- .. • i. J 4.

The figures for 1934 and 193o, it was pointed out,
do not take into account the additional revenue to be
raised bv the new tax measure, which is placed at
$258,000,000 a year.

CS3 Ct3 CjJ

ESPITE the refusal of the House to consider
the adoption of a general sales tax, proponents
of the plan are preparing to bring the matt^er
up when the measure reaches the floor of the
Senate, if opportunity offers. A tax of 2V2 per cent
to applv to all manufactured commodities except food
and clothing, has been proposed. It is contended that
some $400,000,000 a year could be raised m this way,
permitting the repeal of the so-called nuisance taxes
now in effect.
ijf

cVBOR provisions of applicable codes are to be
conspicuously posted in establishments of all
employers operating under approved agree-
ments, under regulations issued last month by
Recovery Administrator Hugh S. Johnson. Failure to
complv with the posting requirements will be punish-
able by a fine not to exceed $500 or imprisonment for
not more than six months, or both.

The regulations, issued under the authority ot an
executive order signed by President Roosevelt, require
all cmplovers to register'with their code authorities the
number and locations of the establishments or separate
units within thirty days.

Copies of the labor provisions of the appropriate
code, carrving detailed instructions for the filing of
complaints of violations, will be furnished employers
by their code authorities.

Cj3 Ctj Ct3

LIMINATION on January 1 next of the two-
cent tax on bank checks is provided for in the
revenue bill now pending in the Senate. Under
existing law, this tax, from which about
$38,000,000 was secured last year, would have remained
in effect until July 1, 1935. ^

The bill also provides for continuation ot the pres-
ent three-cent rate of postage on intercity first class
mail which otherwise would have automatically ex-
pired on Julv 1st next, but vests in the President
authoritv to order a return to the two-cent rate should
the condition of the Treasury warrant such action.

The measure as passed by the House of Represent-
atives provides for the return of second class rates of
l)ostage to the level in effect prior to the adoption of
the Revenue Act of 1932.

CS3 Ct) Ct3

CCEPTANCE of recovery codes does not serve
to deprive business men of any of their rights
under the law, nor does failure to assent de-
prive them of anv of the rights and remedies
(,r the code itself other than the privilege of filing com-
plaints with administrative agencies, it is held by Don-
ald R. Richberg, general counsel of the National Re-
covery Administration, in an opinion submitted to and
approVed bv Administrator Hugh S. Johnson.

**It is iiot the intent or purpose," Richberg held,
*Hhat any member of the industry assenting to the

(Continued on page 15)

Tk4 Tobacco World

B AYUK BULLETIN

WE DO OUR PART

VOLl ME II.

MARCH 1, 1934

NUMBER 3

PHULOFAX

(The Retailer's Friend)

SAYS

MEMOIRS OF ALEX SMART

"crew"

Super 'Salesman Shows Up
Sales Letter Writers

next trip

Working in a
one salesman got 142 in-
troductory orders . . .
another salesman got 106
introductory orders. The
fellow who got 142, se-
cured 39 duplicate orders
. . the salesman who got
IOC initial orders, obtained 69 dupli-
cate oKlors next trip. Which salesman
■oiacal the product? Which salesman
Hold the product? Which is the best
salesiiuin? — 0 —

John Byder and John Feeney were
"talkinK" after the Manufacturers'
Salesmen's banquet. John Byder said,
"There's only two real cigar salesmen
in this whole outfit — that's me, John
Byder and you, John Feeney." John
Feeney said, "You're wrong — there's
three Veal salesmen — you, John Byder
and John Feeney and John Feeney."
— o—

If 1000 cigar salesmen each made
just one new smoker, in a year's time
a minnnum of 1,000,000 more cigars
would 1)0 smoked . . . don't knock any
tobacco product but BOOST CIGARS I

C. R. A. writes in: "We are told
that there are going to be more auto-
mobiles sold this year ... if more
automobiles, why not more cigars and
why not more Class C cigars?" All
right, why not? There will be, if we
folks in the cigar business go out
after more cigar buainess like the
automobile fellows go out after more
automobile sales. Yes, sir, it's up to

L. K. D., a distributor, writes: "All
I of my salesmen start out from jobbing
housi- each morning and while we
have a regular sales meeting every
.Saturday, we very frequently have
from r» to 10 minutes meeting two or
threr times during the week on im-
portant subjects that are better dis-
cussed daily than by waiting until end
I of week." Fine idea, L. K. D.

Wht n we folks in the cigar business
talk about the "cigar industry," w^hat
or whom are we talking about? What
or who is the "cigar industry"? Aren't
I you anfi I and everyone in the cigar
busin« .ss the real sum and total of
what makes up the "Cigar Industry"?
Therefore, when we boost the "cigar
industry," we boost ourselves! En-
dorse the C. B. A. NOW!

Competition can be fierce but com-
petition must be fair! If you can beat
jthe other fellow, do it with clean
|hands— and clean thoughts.

I Mr. Salesman, if you were a retailer,
fc'hat would you do to sell more cigars?
jThink it over, and then tell the secret
■to one of your customers. If it
vorks — tell it to all your customers.

When a Bonn needn deflating. Little Alex ia
the man to do the job. hi thin inntall-
ment, Mr. Smart debunks the Salesman-
ager who tries to tell real salesmen how
to sell.

Another letter that this particular
jobber's salesman and I had a great
deal of fun over was a hooey one
about certain questions you shouldn't
ask a buyer. For instance (so said
this one - man - brain - trust) you
shouldn't ask a dealer "how your brand
is selling."

Listen to this. He said it wasn't
up to dealer to tell you, but up to
you to tell the dealer — that nine times
out of ten, you only asked that ques-
tion just to break the ice and that
you get yourself in a hole if the
dealer, intentionally or otherwise, tries
to confuse you by saying, "It doesn't
sell."

Now get this — you can't do any-
thing or say anything about your
brand if it isn't selling, and you can't
get an order unless it is selling, so
instead of losing time by asking for
an order before you know whether
the brand is selling or not, don't you
have to ask the dealer and find out?

Incidentally, to prove my point, I
asked this very question of one of my
Sales Managers and barken to his
answer: "You would, Mr. Smart, but
a great many salesmen wouldn't." I
cherish that reply, 'cause it sure does
show that I brilliantly stand out away
from a bunch of other salesmen.

always use to put over a short day's
showing was the idea I initially
sprung — telling the Boss "your car
broke down and you lost four hours
getting it fixed." The jobbers' sales-
men of this country owe a great deal
to me!

One time, I worked for, or was with,
a manufacturer who was simply bugs
on the subject of store advertising —
window posters, display cards and
other advertising junk. He used to
preach that he didn't want "salesmen
to sell cigars but wanted salesmen
who could make cigars sell."

If I understand the English lan-
guage correctly, and I admit that I do,
I ask you, what is the difference? He
used to say that "it is easy to get a
dealer to buy . . . the real selling job
is to help the dealer sell" and that
"you get the dealer to sell by getting
the consumer to buy."

Window posters! Window posters!
Window posters! Gad, he tried to
pound window posters into us day and
night ... he did get some of his sales-
men to use window posters regularly
I and these salesmen usually headed the
list in volume of business, but why
shouldn't they? The brands sold bet-
ter in their territories, and if the
cigars sold better why shouldn't they
get their customers to buy in bigger
quantities?

DON'T BE A 1933 MODEL

This isn't last year. Business con-
ditions in 1934 are vastly different
from business conditions in 1933.

There are probably on your list a
whole lot of customers whom you have
been passing by because their credit
was bad, or they weren't buying — or
something.

Try working those worked-out
claims again. Thar's gold in them
hills yet,

WHEN IS 100% NOT 100%?

A certain jobber, by dint of sweat
and effort, succeeded in placing his
brand in every one of the 119 outlets
in one section of his territory. He was
certain he had 1007© distribution. And
he was right — only, he was wrong.

One day, January 6th to be exact,
a check-up revealea that 71 retailers
out of the 119 did not have this brand
in stock. The jobber had thought the
sub- jobber was looking after these
accounts.

This jobber, by the way, was not
asleep at the switch. He had con-
tacted each of the 119 accounts every
two weeks. But a lot can happen in
two weeks — and often does. Mr. Job-
ber and Mr. Salesman — how's your
distribution as of today?

They say McCormick invented the
mechanical reaper because he was too
lazy to cut his wheat by hand. There
are cigar salesmen so lazy that they
put up window posters to make their
own work easier.

In his next and concluding chapter
the greatest salesman of all time will
bring his amazing intellect to bear on
such knotty problems as case display
and how to handle the home office.
"The Memoirs of Alex Smart is a first-
class correspondence course in sales-
manship." writes one reader. We'll

say so—

THE EDITORS.

BAYUK BRANDS BLILD BUSINESS

Bayuk Philadelphia Perfecto
Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

C?5^

D. B. I.

•4M,„i,„^,l ^ni, BAYUK riGARS. INC.. PhUa-
*»lphin ^ M«Jt«,r. of Jimm rtgan »tmcm 1897

Another question you shouldn't ask
a customer (so wrote the Brain
Monopolizer in this sales letter) was
"How's Business?" This "word-wiz-
ard" would have you believe that
when you ask that question, the
answer, kiddingly or otherwise, might
|l)e, "It's Bum"— and then maybe you
wouldn't want to call the buyer a liar
and yet if you accept his statement
as being true, you lessen your chance
of selling him.

That's what he says. I say, "Bolo-
ney" with a big B. Now, I know I can
tell if business in bum with any dealer
by figuring how he has been buying
my brands, and if I come to the con-
clusion that business is off with him,
what is the harm of having him con-
firm it? If business is bum, business
is bum, and what can I do about it?
I don't make business good or bad for
my customers ... I take business
from my customers if there is any to
give me . . . I'm a salesman, I am.

Some Fast Alibis

Yes, I was a big help to jobbers'
salesmen as a factory man ... I
gave 'em all I had, to add on to what
they already didn't know.

And, as a manufacturer's salesman,
I learned some of 'em how to hold out
a few orders each day to provide enuf
orders for the day of the big ball
game. Another clever trick, since the
advent of the automobile, you could

No, these boys don't adorn the top
brackets on Uncle Sam's income tax
blanks. They are another breed of
millionaire, and not one of them in-
herited his millions, either. Each and
every one of them got his by honest
toil.

They are charter members of a club
formed by the salesmen of one of the
factory branches of a leading cigar

manufacturer. To become eligible to
membership each of these chaps had
to sell at least one million cigars dur-
ing 1933. Some of them sold in excess
of five millions.

Mr. Jobber, how would you like to
have a Millionaire Club in your sales
organization? All right, what's stop-
ping you? Let's have more and bigger
and better Millionaire Clubs in 1934.

MIA.

pHIbADEli

BAYUK BUSINESS BOOMING

ROM tlie reports emanatiTig from Miami and
other points in Florida, it appears that sales
managers and other executives of companies
scattered all over the country have decided
simultaneously that that state now oiTers the best op-
portunities for the stimulation of business. At any
rate, thev have been flocking down there in droves.
Of cours'e, the Loughran-Carnera championship fight
had nothing to do Vith that hegira. We know that
for a certaintv in the case of one executive, even
though he hails from the home town of the Kitner
Street Adonis contending for the world's champion-
ship title.

We refer to A. Jos. Ne\\Tnan, vice-president in
charge of sales of Bayuk Cigars, Inc., who timed his
business trip to Florida when business could be done
with no competition from tisticulTs, and, from all ac-
counts, he did the business — and then came home be-
fore the title bout.

Chambers & Owens, Janesville, Wis., are doing
an outstanding job promoting the sale of Bayuk
Phillies in their territory, and were recently assisted
bv W. B. Schulte, Bavuk salesman, in a special drive
on the brand.

Charles M. Sledd, ^^^lolesale Merc. Co., Wheeling,
W. Va., has been added to the Bayuk list of distributors
for the Phillies cigar.

John Heffernan & Son, Champaigne, 111., are mak-
ing good inroads in Bayuk distribution and sales in
their territory, and recently finished an effective cam-
paign, assisted by Frank J.' Horning, Bayuk salesman.
The multitude of friends of J. Vipond, of the
Scranton Tobacco Co., have learned with pleasure that
he is on the road to convalescence after an operation
at the Hahnemann Hospital, Scranton, Pa.

Benjamin Grabosky, of Grabosky Bros., Inc.,
Royalist manufacturers, has returned from his visit
to New^ York State and the mid-west and reports the
outlook highly encouraging for his brand. Plans are
going forward at factory headquarters for the removal
of their manufacturing operations to their larger
quarters just a few doors away, on or about April 1st,
when they will be in a position to take care of the
steadily increasing demand for their brand.

14

James Heaney, of the American Cigar Co., was
in town last week.

O. C. Schneider, sales manager for the Bering
factorv, Tampa, Fla., was a visitor at Yahn & McDon-
nell, local distributors of the brand, last week. The
Bering cigar enjoys a good demand here.

William A. Copple, representing M. Marsh & Son,
left the balmy (?) atmosphere of Atlantic City, where
he maintains' his headquarters, long enough to pay us
a visit recently. He reports Marsh i)roducts enjoying
a wide popularity in this territory.

Wm. F. Lakin, Waitt & Bond, is in town pro-
moting the distribution and sale of the new Blackstone
Panetela, through Yahn & McDonnell, Icoal dis-
tributors of the brand. This brand has shown a sur-
prising increase in sales since the advent of the new
low price of two for fifteen cents.

Robert Allely, who succeeded his late father as
representative of the Christian Peper Tobacco Co.,
St. Louis, in this territory, is now working with
the various jobbers getting the *'lay of the land" and
rapidlv gaining a host of friends among tliose who
lield h*is father in high esteem. The many friends of
1'oni Allelv, whose untimely death occurred in Decem-
l»Lr, are gratified that the Christian Peper Tobacco
Co. has appointed Robert to carry on his father's
good work for the Christian Peper brands.

John Wagner and Sons, local distril)utors of high-
unade cigars and tobacco products, report an excellent
business for the first two months of this year, with
their Wagner brand of cigars showing a particularly
,^ood demand, and also a gratifying increase in the
.^ale of their imported cigars, particularly in the top
sizes. Stock of these imported brands is running low
on account of recent internal troubles in Cuba, but new
shipments are beginning to arrive and regular ship-
ments are expected in the near future.

Th€ Tobacco World

S

NEWS FROM CONGRESS

(Continued from page 12)

(odo on the forms used by the code authority shall
t iKMoby waive or be estopped from setting up any right
which such member of the industry may possess under
uciieral or statutory law against any arbitrary, oppres-
sive, injurious or unreasonable action by any adminis-
uative official or agency under the code.

"Members of the industry not assenting to the
code on the forms above mentioned cannot be denied
aiiy of the rights and remedies afforded by the code
>ave only that they wdll not enjoy the right to file com-
plaints before the administrative agencies provided for
111 the code. Upon acceptance of any of the beneiits
and advantages of the code, such members of the indus-
try may be assessed a reasonable amount, subject to
Iho approval of the administrator, to help defray the
cxponses of administering the code but not otherwise."

Cj3 Ct3 Ct3

XDIVIDUAL members of code authorities are
to be relieved of responsibility for the actions
of their fellow members under a provision
which has been drafted l)y the legal division of
the National Recovery Administration and submitted
to industries for inclusion in their codes. Tlie provision
is suggested as an amendment to codes already in oper-
ation, and is expected to be required by the administra-
tion in codes which have not yet been acted upon.

Necessity for the clause is due to the fact that code
authorities are not Government agencies and are re-
sponsible to members of the industry for their actions,
should they exceed the Umits of the authority conferred
upon them by their code.

It is provided that ''nothing contained in this code
shall constitute the members of the code authority part-
ners for any purpose nor shall any member of tlie code
authority be liable in any manner to any one for any
act of any other member,' officer, agent or employee of
the code authority. Nor shall any member of the code
authority, nor any agent thereof, exercising reasonable
diligence in the conduct of his duties hereunder be lia-
ble to any one for any action or omission to act under
this code, except for his own wilful mis-feasance or non-
t't'asnnce. ''

LUCIA DI LAMMERMOOR SATURDAY

On Saturday, March :kl, the comi)lete
"laicia ])i Lammermoor," will be broadcast
li oiii the Metropolitan Opera House in New Yoi
Mvcr both the Red and Blue Networks of the N
liroadcasting Company, through the courtesy
American Tobacco Co. The series of
t'anious operas being broadcast this season each
day is keeping the imblic reminded of the high quality
ot' Luckv Strike cigarettes.

opera,
direct
k Citv,
ational
of the
world-
Sat ur-

DISTRIBUTORS SET PRICE

At a recent meeting of the Philadeli)hia Division
of the National Association of T(»bacco Distributors
it was recommended that an established prici' of $1.14
a carton oil the po|)ular brands of ciuarettes be inain-
iuined on sales of one to four cartons, $1.12 on sales
"T live to forty-nine cartons, and $1.10 on sales (jf fifty
cartons or more. It is lioped that jobbers will realize
the importance of maintaining this i)rice and thus as-
sist in bettering conditions in their industry.

March t, igj;4

MURIEL

CIGAR

Full
Size

5^

Long
Filler

Exceptional cigar
quality for a nickel

Other sizes

l.onftfellow* , . . , 3 for 25<f

PrrfecttJS 1*^

Aristocrats 2 for 25f

Mfd. I>T r. LOSILLASO CO., INC.

TOBACCO TRADE ORGANIZATIONS

TOBACCX) MERCHANTS ASSOCIATION ^^ShN^

OF UNITED STATES "^^iij^

JESSE A. BLOCK. Wheeling. W. V« i';E!!!!H*«t

CHARLES J. EISENLOHR. Philadelphia. P* vfr^P^SdSt

JULIUS LICHTENSTEIN. New York. N. Y •;•..; •• ;y'"r««mltt2

WILLIAM BEST. New York. N. Y Chairman Executire Committee

MAI. GEORGE W. HILL. New York. N. Y vIcrKeSdeS

GEORGE H HUMMELL. New York. N. Y X-"'E"! 3e«I

H. H. SHELTON. Washington. D. C vv!'Kn 3!nt

WILLIAM T. REED. Richmond. Va v "E^n j!«t

HARVEY L. HIRST. Philadelphia. Pa ^'^ ^?r!!.™

ASA LEMLEIN. New York. N. Y •• ,••■/•;; :"Jn^J^r

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 Vrr ' ' El!!!^!^!

CHAS. B. WITTROCK. Cincinnati. Ohio Vice-President

GEO. S. ENGEL. Covington. Ky iI!"iL\!;

WM. S. GOLDENBURG. Cincinnati. Ohio secretary

ASSOaATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City «";*v;;:pl!!lH!nI

MILTON RANCK. Lancaster. Pa -First Vice- Pres den*

D. EMIL KLEIN. New York City Second y«"-P««'J«°J

LEE SAMUELS. New York City SecreUryTre«surer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

JACK A. MARTIN. Newark. N. J i" 'V v-'E^tH!"!

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 SecreUry -Treasurer

NEW YORK CIGAR MANUFACTURERS' BOARD OF

TRADE

ASA LEMLEIN v 'Elf'li"!

SAMUEL WASSERMAN Vice-Preaident

THE NATIONAL ASSOCIATIONS OF TOBACCO

DISTRIBUTORS

C. A. JUST. St. Louis. Mo President

MAX TACOBOWTTZ. 84 Montgomery St., Jersey City. N. J ....Secretary

E. ASBURY DAVIS. Baltimore. Md Vice-President

E. W. HARRIS. Indianapolis. Ind Vice- Resident

JONATHAN VIPOND. Scranton, Pa Vice-j^esident

GEO. B. SCRAMBLING, Cleveland, Ohio Treasttrer

IS

FOREIGN MARKETS

(Continued from Page 6)

during the past year. Total imports of unmanufac-
tured tobacco from the United States for this period
in 1933 were 131,245,326 pounds, as against 105,615,342
in the same period of 1932, and 130,242,433 in 1931.
Imports of Empire tobacco during the corresponding
eleven-month periods were 47,389,372 in 1933, 45,236,-
680 in 1932, and 32,252,180 in 1931.

Imports of manufactured Empire tobaccos are, of
course, unimportant in comparison with the imports
of raw tobacco, but it is nevertheless noted that they
show no signs of increase. The total imports of Em-
pire manufactured tobacco in 1932-33 were 50,071
pounds, which compares with 56,794 pounds in the
previous year and 73,514 pounds in 1930-31. The
1932-33 figure is the smallest for the ten years, and the
1930-31 figure is the largest. Cigars are by far the
most important item in the manufactured tobacco
category. Imports in 1932-33 amounted to 35,216
jDounds, which represents a more or less steady decline
since 1924-25, when imports amounted to 54,718
pounds.

During the fiscal year 1932-33, the report states,
2,436,590 pounds of tobacco were ** delivered as stores"
for sale on British naval and merchant vessels. Of this
amount, 372,710 pounds were foreign manufactured
tobacco.

SPAIX — According to a report by Acting Ameri-
can Commercial Attache Julian C. Greenup to the
Tobacco Division, Department of Commerce, collec-
tions from the sale of tobacco from January 1, 1932,

to October 31, 1932, amounted to 381.5 million pesetas,
compared with 389.16 millions for the corresponding
period of 1933.

CANADA— The 1933 crop of bright flue-cured to-
bacco in the Norfolk district was about 18,000,000
pounds compared with 27,000,000 pounds in 1932, and
tlie quality was inferior. Due to the co-operative
elTorts of growers, the average price per pound ob-
tained for the crop, however, will probably exceed that
for 1932. {American Consul John D. Johnso7i.)

IRELAND — The recent improvement in trade and
industry in Northern Ireland was maintained during
January. The volume of business of the local tobacco
manufacturing industry has been maintained at the
level established in recent months. Termination of the
coupon feature in merchandising has not appreciably
affected sales. Several hundred workers were added to
the staff of one of the local factories during the past
year. The local industry is obtaining an incronsing
share of the tobacco business in the home market. Pros-
pects for improved business in the linen industry as the
season develops are considered favorable. The agri-
cultural situation shows improvement. {American
Consul General Liician Memminger.)

PORTUGAL— During the year 1933, the commer-
cial and industrial conditions of Portugal showed con-
siderable improvement over those of the previous two
years, notably so in the agricultural sections of the
country where the harvest was good and the demand
increasing. The exchange situation as regards the
Portuguese Escudo has improved. Tobacco is among
the principal articles imported into Portugal. {Amer-
ican Consul General Carl F. Deirhman.)

New Contract for Georgia-Florida Growers

X adjustment plan to increase the returns of
contracting growers of Georgia-Florida (type
62) cigar leaf tobacco in 1934 and 1935 has
been announced by the Agricultural Adjust-
ment Administration. Under this program by which
it is hoped to restrict production of this type by 40
per cent, below the past five-year average, approxi-
mately $260,000 will be paid to producers, of which
$130,000 will be paid this season if all who are eligible
participate.

Under the new contract two payments will be
made in 1934 to contracting producers. The first pay-
ment would be $30 per acre on the tobacco harvested,
and would be paid before September 1, 1934. The sec-
ond pa^^nent of $30 per acre would be made after
proof of compliance with the terms of the contract ha^
been submitted by the producer. The growers of this
type of tobacco were included in the cigar-leaf adjust-
ment program of 1933, and contracting farmers were
notified December 28 that the Secretary of Agriculture
would exercise his option under the original contract
to restrict the 1934 acreage to approximately 2,000
acres, and to require a limitation of production as
well. The new contracts ratify that option.

Acreage limitation is provided by making a *' to-
bacco acreage allotment" to each grower. The base
acreage of each farm covered by a contract is the aver-
age acreage from which tobacco was harvested in the
years 1929-33, inclusive, and the allotment is equal to
the base acreage, unless the base exceeds five acres.
If the base exceeds five acres, the allotment amounts

j6

to two-thirds of the base. Tobacco, under the contract,
can be grown only on allotted acreage.

Under the contract, production of the lower grades
of tobacco, which represent a large part of the present
excess supply, will be further restricted by a provi-
sion that the top four leaves of each stalk of tobacco
shall be left unharvested.

Should all growers take advantage of the pro-
gram, the total crop would be 10 to 15 per cent, lower
than the estimated consumption for 1934. Most of
the reduction would be from lower grades which arc
produced at the top of the tobacco plants.

As 93 per cent, of the growers were under 1933
contracts, it is estimated that the sign-up of the new
contracts will be made by practically all of the pro-
ducers. The current average farm price for the type^
of tobacco covered is 25 per cent, below fair exchange
value on the basis of crop reports. It is estimated thai
the signers of contracts will receive an average of 15
per cent, greater returns for their crop than those
who are not under contract.

DON SEBASTIAN SALES GOOD

George ZitTerblatt, of Geo. ZitTerblatt & Co., ha^
left for a trip through the middle west visiting dis
tributors of the Habanello brand. Reports from thos*
points indicate' an increasing demand for tliis popular
brand, which is very gratifying, and indicative of the
general increasing confidenco in business condition-
and future prospects.

Th4 Tobacco World

Seven Months Withdrawals for Consumption

First 7 Mos.
Fiscal Yr. 1934

( 'igars :

Class A—

United States
Puerto liico
Philippine Is,

2,285,985,470 +

34,533,780 —

140,288,510 +

— Decrease

+ Increase

Quantity

214,280,465

2,714,105

36,920,995

Total 2,460,807,760 -f 248,487,355

Class B—

United States
Puerto Rico .
Philippine Is.

Total

20,023,035

2,148,200

106,084

+

6,444,608

2,075,700

388,769

22,277,319 — 4,757,677

Class C—

United States
Puerto Rico .
Philippine Is.

Total

359,026,612
649,530
170,762

359,846,904

81,873,728

215,520

8,760

82,098,008

Class D—

United States
Puerto Rico
Philippine Is.

Total

Class E—

United States
Puerto Rico .
Philippine Is.

Total

28,053,185 —
1,000 —
1,950 -f

Total All Classes-
United States . .
Puerto Rico ....
Philippine Is. . .

28,056,135 —

3,624,469 —

2*55i —

3,627,020 —

2,696,712,771 -f

37,332,510 —

140,569,857 +

3,401,335

500

74

3,401,761

432,312

24*2i2

456,524

122,128,482

854,425

36,499,328

Grand Total . 2,874,615,138 + 157,773,385

Little Cigars:

United States
Puerto Rico . ,
Philippine Is.

128,989,414
1,780,000

20,199,280
1,020,000

Total 130,769,414 — 21,219,280

Cigarettes:

United States
Puerto Rico .
Philippine Is,

65,537,569,905

2,836,000

768,090

+ 5,226,991,829
+ 827,660

— 394,680

Total 65,541,173,995 + 5,227,424,809

Large Cigarettes:

United States . .
Puerto Rico ....
Philippine Is. . .

X. oiai

SnulT (lbs.):
All United States.

Tobacco (mfd. lbs.) :

United States . .
Philippine Is. . .

Total

9,591,900 +

615,000 +

6,200 —

7,729,564

285,000

4,166

10,213,100 + 8,010,398

21,237,628 +

944,363

178,105,460 —
71 —

78,923
96

178,105,531

79,019

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a nionth for a year.

Name

Street No. .
P. O

^tate

M<»ch I, IQS4

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Established 1886

"BEST OF THE BEST

9f

""•'-—' "' A. SANTAELLA & CO,

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keif West. Florida

OUR HIGB-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco melCow and smooth In charactet
and Impart a most palatable flavor

FUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTUN. AROMATIZE!, BOX FLAVORS. PASTE SWEETENERS

FRIES & BRO.. 92 Reade Street. New York

Classified Column

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a minimum charge of seventy-five cents (75c.) payabls
strictly in advance.

DUi^ULiLk

p(lt)«rt'rtvi.>svir«txy»>;itY«\irr«^^^^^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territorj' desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE^ — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, ^NEw^io^K c^ty

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

Dnplicatp Certificatp, 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 Dollar*
($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

TUSCORA: — 46,294. For cigars, cigarettes and tobacco. J. J. Mc
Cauley & Son, Uhrichsville, Ohio, November 20, 19.33.

TRANSFERS

LANTANA: — 23,301 (Tobacco World). For cigars, cigarettes and
smoking tobacco. Registered Xovcniber 13, 1911, by Dorr Cigar
Factory, Augusta, (ia. Transferred to Diamond Joe Cigar Fac-
tory, H, Fendrich, Evans ville, Indiana, February 9, 1934.

CUSTOM MADE: — 46,290 (Tobacco Merchants' Association). For
cigars only. Registered November 14, 1933, by Consolidated Litho.
Corp., Brooklyn, N. Y. Transferred to Deisel-Wemmer-Gilbert
Corp., Detroit, Mich., February 6, 1934.

SANCTION:— 32,780 (Trade-Mark Record). For cigars, cigarettes
and tobacco. Registered May 22, 1907, by Geo. Schlegel, New
York, N. Y. Transferred to G. A. Kohler & Co., Yoe, Pa., Febru-
ary 15, 1934.

ADJUSTMENT PAYMENTS TO FARMERS

A Y:\IKXTS of $1,546,175 liad been made to
:?(Kn44 tobacco farmers up to February 1 in
the adjii.stnient i)i-oi»:ram of the Agricultural
Adjustment Administration, snnnnaries an-
nounced bv the Administration show. Following is a
1al)ulation of the payments ))V states: Connecticut,
$lS8,()97.r){); Florida," $r,3,553.()5: (Jeorgia, $22,035.6(1;
Illinois, $2()7.H5: Indiana, $1,529.1)5; Massachusetts,
$92,:>77.1<); Minnesota, $18,061.41: New Hampshire,
SL>,28S.(;0; New York, $23,380.53; Ohio, $282,615.63;
Pennsylvania, $434,458.08; V<»rinont, $2,604.05; Wis-
consin", $414,904.06.

*'What a welcome visitor

The Tobacco World

must be to wholesalers and
retailers !

**If they are only half as
interested in reading it as
we ourselves are, we're glad
our ad is in it regularly" —

says an advertiser.

RECEIVED

mm

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the neu^ improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

Phila., Pa.
Hanover, Pa.
Cincinnati, Ohio

Ynrk Pfl

AUTOKRAFT BOX CORPORATION c./cago m

LIMA OHIO Detroit Mich.

A Natioi\Wid<2 Service Wheeling, W. Va.

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA., PA

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember that Regjrdle» oi Price

THE BEST CIGARS

ARE PACXrZ) l>

WOODEN BOXES

THE TOBACCO WORLD

Vol 54

MARCH 15. 1934

No. 6

^«jE liavo boon ro-roa(lin.i»', with imich iiitorost, a
\fj^ copy of William W. Young's "Tho Story or
the Cigarette," inihlisliod in IDK). We men-
tion tlie (late beoause most of our thinking, as
wo hiy down the book, has to do with the almost un-
believable changes that have taken place in the ciga-
rette industry since the book was written. It hai)])ens
that our copy is a presentation co])v, bearing a ty])e
written note from (loorge W. Mill, at that time vice-
])resident of the Amoi-ican Tobacco ('omj)any. In this
note, after pointing with j)ride to the table showing the
growth of cigarettes from 1,75(),U(H) in the vear 1869
to l(;,427,()8G,()()(l in the year 1914, the last* year for
which there was an official record at the time the book
was written, ^Ir. Hill added: *T have no hesitation in
going on record that the years following 1914 will
show far greater increases than those i)receding
1914.''

Ct3 Ct3 Ct3

.^jJlAS George W. Hill a good prophet! We'll
^\l5(l say he was. We're not going to bore you
with a mass of tigures, showing the stupen-
dous growth of cigarette consumption since
the first year of the World War. You're familiar in
a general way with them, anyway. But you will jirob-
al)ly be thrown for a loop, as we were, to learn that
in the single year of 1933, which was the nineteenth
year following 1914, more cigarettes were made an<l
sold than during the entire nineteen years ending with
the year 1914. That's growth, it' you ask us.

Another significant fact about the Yr)ung volume
i^ that 100 of its 281 pages, nearly (JO per cent, of its
contents, are devoted to a defense of the cigarette.
AVc refer to the chapter headings: **('hemistry of the
Cigarette," ^'Scientific Views on Sm(>ke," "Populai*
l^nors About Tobacco," *'Tho Voice and Smoking,"
"The Question of Kxcess," *'The Cigarette in War,"
''The Cigarette and the Youth," "Smoking and
Elliciency," and "Cigarette Legislation."

What a far cry that is from the present attitude
toward the cigarette! The cigarette today needs no
defense. Anybody who wants a defense can find it
in the way th(» cigarette helpe<l peoi)le to carry on
during the last four vears.

()n the contrary, you find a general acceptance of
the cigarette, and a disposition to find the scientific
reason tor the pleasure which arises from smoking,
as witness the findings of the two Yale ])rofessors, as
re|M>rted in the last issue of Thk Tobacco World. An
eilitorial conunent on their scientific paper is so pat
that we cannot resist the temptation to reproduce it
Ihto, because of its interest to the trade. It is from
tlie llarifitrd (Conn.) Timrs, an<l runs as follows:

HE saying that where there is much smoke
there must be some fire — perhaps including
the glow of revived zest and the warmth of
new sociability — may describe that a good
smoke causes the smoker to be more cheerful, but it
does not explain why this should be so. We now^ have
it on good authority that the scientific explanation of
the amazing cycle — tobacco — fire — smoke — cheerful-
ness— may be stated in terms of sugar.

"Two Yale laboratory technicians have come to
the conclusion, as the result of their experiments, that
'smoking produces a definite, although temporary, in-
crease in the concentration of blood sugar, and a cor-
responding increase in the rate of sugar combustion
in the body.' There you have it — more blood sugar,
and faster use of it, account for the smoker's pleas-
urable feeling of well-being, affability and goodwill
toward all men.

** There is more to the explanation, but the fur-
ther statement is not very revealing to the uninitiated
in bio-chemistry. The sugar refueling, it seems, is
brought about by the nicotine of tobacco acting as
an alkaloid on the adrenals. It may be best to leave
the explanation in terms of blood sugar. The term
connotes many things in connection with a pleasant
smoke, such as smothered feelings, pleasant anticipa-
tions, engaging reveries, and the freedom to ask any
colleague of the realm of the tobacco-sugar mystery,
for a cigarette, cigar, or, at least, a match."

Cj3 Ct3 [t3

\WM ^'^ ^^^ ^^* smoke f asks Louis Nicholas, in a
\f^ recent release of his syndicated iiews])aper
feature, ' ' March of Science. ' ' In other words,
what specifically is responsible for the pleasure
derived from tobacco? Some psychologists, he writes,
hold that it is purely a responsive habit; that the
stimulus obtained from nicotine can be replaced by
synthetic measures. For instance. Knight Dunlap,
professor of psychology at Johns Hopkins University,
lias gone so far as to advise the substitution of a rub-
ber cigarette for the real article when someone wanted
lo stop smoking. He, of course, apparently disregards
the elTect of tobacco on the human system, l)elieving
that the cigarette habit is largely mental.

"Kecent experiments trace the reasons for smok-
ing to the absorption of minute doses of nicotine by
the body. The results, announced by Drs. H. W.
Haggard and Leon A. Greenbeig, dispel a great many
former theories, one of which lield that the satisfac-
tion of smoking was linked with pyridene, a product
of combustion.

"Pyridene, it was pointed out, occurs in such a
juvenile substitute as cornsilk, yet the inveterate
smoker does not rely upon cornsilk."

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
*^"*'d B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the Ist and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Pc»t Office, Philadelphia, Pa., under the Act of March 3, 1879.

Stocks of Leaf Tobacco on Hand

TOCKS of loaf tobacco in the United States
owned bv dealers and mannfaetnrers
amounted to 2,181,119,000 pounds on January
1, 11):U compared with 2,144,733,000 pounds
on January 1, 1933. This is an increase in the total
stocks of 3(),386,000 pounds over the stocks of a year
aiio January 1. From October 1, 1933 to January 1,
1934 total stocks increased 173,084,000 pounds. The
increase during- the same period of 1933, namely from
October 1, 1932 to January 1, 1933, amounted to onlv
49,722,000 pounds.

Stocks of flue-cured tobacco on hand January 1,
1934 ^vere 858,124,000 pounds, coni])ared with 769,497,-
000 pounds on January 1, 1933, an increase of 88,()27,-
000 pounds over the lioldinii:s of a year acfo. J)urini»
the fourth quarter of 1933 flue-cured stocks increased
252,414,000 i)ounds compared with an increase of onlv
48,989,000 ])ounds durin-: the fourtli (juarter of 1932.
The stocks of Type 11 on January 1, 1934 were re-
ported as 348,966,000 pounds: Tvp'e 12 as 303,326,001)
pounds; Type 13 as 146,713,000 pounds; and Type 14
as 59,119,000 pounds. The detailed report by groups
of grades shows about the same proi>ortion of tobacco
in the various groups as previous rei)orts have shown.

Stocks of fire-cured tobacco were rei)orted as 170,-
761,000 ])ounds, on January 1, 1934 compared witli
187,422,M0(> pounds on January 1, 1933. Total lire-
cured stocks were nearly 17 million jmunds lower than
they were a year ago January 1, and about 26 million
pounds lower than on this previous quarter. Virginia
lire-cured. Type 21, stocks reported as 23,109,000
l)ounds on January 1 were about 8 million pounds
lower than a year ago. Type 22, reported as 105,487,-
000 j)ounds also showed a decrease of about 8 million
pounds under the January 1, 1933 stocks. Type 23
stocks re])orted as 3S,574,(HK) pounds were only a litth'
over a million pounds lower than on January 1, 1933
and showed an increase of ]],612,0(M) ]M)unds*oyer the
])revious quarter holdings. Stocks of Henderson
Stemming, Type 24, were reporte<l as .?..')91,0()() ])ounds
on January 1, 1934.

Burley stocks were about 34H> million ])ounds
lower on January 1, 19:54 than tliey were at the be-
ginning of 1933. The Januaiy 1, VJ'M report shows
585,252,000 pounds of Burley (»n hand com])ared with
619,690,0(MJ pounds (ni hand the iirevious year and 615,-
930,000 ])ounds on the previous (juarter. Maryland
tobacc<» stocks were slightly lowei- on January l' than
they were on October l.'l!>:;.3, at which time thev
reached a record high, hut they are still considerably
higher than the average stocksover a period of years.

The January 1, 1934 report shows 37,989,000 pounds
of Maryland tobacco on hand.

One-sucker stocks on January 1, 1934 amounted
lo 27,384,000 pounds, 6,670,000 pounds lower than on
January 1, 1933 and about 3 million pounds loAver
than the ()ctol)er 1 stocks. Green River stocks re-
l)orted as 35,101,000 pounds on January 1, 1934 were
slightly higher than a year ago. Virginia sun-cured
stocks totaled 2,284,000 pounds on January 1, about
a million pounds lower than the previous year's stocks,
^liscellaneous domestic stocks were reported as 2,184,
000 pounds and foreign-grown other than cigar leaf
as 74,034,000 pounds on January 1, 1})34.

Stocks of American-grown cigar filler tyi)e?^
amounted to 167,953,000 pounds on January 1, 1934,
comi)ared with 177,083,000 pounds on January 1,

1933, a decrease of 9,130,000 pounds. Type 41, Penn-
sylvania seedleaf stocks on January 1, 1934, were 91,
672,000 pounds; Type 42, Oebhardt,* 21,376,000 pcumds;
Type 43, Zimmer, 25,585,000 pounds; Type 44, Dutch,
7,339,000 pounds; Type 45, Georgia and Florida sun-
grown, 1,503,000 i)ounds; and Type 46, Porto Kican,
20,487,000 j)ounds. The detailed* report shows about
75 per cent, of the total filler type stocks in the ('
group, and about 23 per cent, in the X grouj).

The cigar binder type stocks were a little over 4
million pounds higher on January 1, 1934 than they
%vere on January 1, 1933. Total* binder type stocks
were reported as 194,179,000 pounds on January 1,

1934. Of this total 35,238,000 pounds were Type 51,
Connecticut broadleaf; 34,486,000 pounds. Type 52,
Havana seed ; 4,136,000 pounds Type 53, New York and
Pennsylvania Havana seed; 75,0*!)5,0(I0 pounds South-
ern Wisconsin; and 45,224,000 pounds Northern Wis-
consin. The detailed report by groups of grades
shows that of the total binder type stocks reported
4,714,000 pounds are of wrapper quality, 69,850,000
pounds are binders, 11,442,000 poumls are tillers, and
107,889,000 pounds are stemming grade or X group
tobacco.

Shade-grown WTapper type stocks were 1,324,000
pounds lower on January 1, 1934 than on January 1,
1933. The January 1 report of this year shows 14,
779,0(K) pounds on hand. Connecticut Vallev Shade,
Type 61, stocks were 10,821,000 pounds, and the Geor-
gia and Florida shade. Type 62, stocks were 3,958,000
jmunds. Of tlie total shade tobacco stocks reported
10,203,000 jmunds are shown in the A irrou]) as beinic
of actual wrapjicr quality.

Foreign cigar leaf tobacco stocks were reported
as 11,095,000 pounds on January 1, 1934 ccnupared
with 11,879,000 pounds on January 1, 1933.

American Tobacco Company Report

HE American Tobacco Conqiany, in a state-
ment issued to stockholders, reports net in
come foi- the year 1933, after depreciation,
taxes, etc., of $17,401,207.93. While this fi-
ure is approximately $26,000,000 h-ss than the net for
1932, .Mr. George W. Hill, in a letter accompanying
the statement, points out thai early last year it* be-
came evident that protits for 1933*must be subordi-
nated to tlie more inq)ortant consideration of maiu-

taining volume of unit sales. To meet this problem
successfully, it was necessaiy to reduce the price of
Lucky Strike Cigarettes to a level which allowed onlv
a very small profit. The report for 1933 r<»flects this
sacrifice of profits.

In continuing, Mr. Hill states that ''it is gratify
ing to state that, as a result of this policy, unit sales
of the standard package of Lucky Strike Cigarettes
increased substantially over those of the preceding

The Tobacco World

year. At the same time our Company has given its
best co-operation to the Government program of in-
creasing the purchasing power of the farmer and the

wage-earner.

**In January of this year, due to increased costs
and in view of better business conditions, cigarette
prices were increased. Under these improved condi-
tions, we are hopeful that our volume can be main-
tained in 1934 at a fair price level."

Operating profit of the company before deprecia-
tion and all classes of taxes, was $18,500,528. Divi-
dends received from wholly or partially owned sul)-
sidiaries, and other dividends and income brought this
figure up to $23,473,821. Deductions for premiums on
bonds purchased and cancelled, interest, discount, etc.,

Assets :

V asn ..................p o^,, '•)o,uo4.x I

Accounts receivable 10,057,272.62

Uills and mortgages receivable 2,601,496.99

Leaf tobacco, manufactured stock, op-
erating supplies, etc., at cost 115,480,476.52

l*repaid insurance, etc 473,660.37

Accounts receivable from subsidiary

and affiliated conq)anies ..,...,.. 1,51(),535.52
Stocks and bonds:
Capital stocks of partly
o w n e d domestic and
wholly owned foreign

subsidiaries \ .$42,367,8(M).28*

Treasury stock at cost:
11,200 shares of connnon
stock and 55,362 shares
of common stock H. . . 2,825,037.02
(At market p r ices
Februarv 1^ 1934,
$5,014,071)
Other investments, at
amounts not in excess

of cost 5,492,972.04

(At market prices
February 14, 1934,

$4,671,058) 50,685,809.34

lieal estate, machinery, tixtures, etc., at
cost (less reserves for depreciation,

$10,107,493.30) 21,349,200.71

Brands, trade marks, patents, gootl will,

etc 54,099,430.40

•The American Tobacco Company's
equity in the net assets of these
subsidiaries, as shown by their bal-
ance sheets at December 31, 1933,
(net assets of foreign subsidiaries
converted at par of exchange) in-
eluding intangible assets of $3,973,-
748.45, aggregated $43,451,351.96.

$289,222,516.64

and including a net loss on sale of securities of $144,-
970, reduced this figure to $23,185,966. Further de-
ductions for depreciation. State and Federal taxes, re
duced net income for the year to $17,401,207.93. Out
of this net figure, $3,161,982 was paid in dividends
on the 6 per cent, preferred stock, and the balance of
$14,239,225.93 equivalent to $3 a share on the common
shares, was added to surplus account, which prior to
that time totaled $118,107,617.47. From this account,
$23,719,148.75 w^as paid out in dividends on the com-
mon stock, leaving a balance in the surplus account at
the end of 1933 of $108,627,694.65.

The consolidated balance sheet of the company
at the end of 1933 sets forth assets and liabilities as
follows :

LlABIIJTIRS:

Accounts payable $

Bond interest accrued

Accounts payable to subsidiary and affil-
lated companies

l*rovision for dividend on preferred
stock, for quarter ended I)ecember
31, 1933, payable January 2, 1934

Provisions for advertising, taxes, etc..

Six per cent, bonds, maturing October
1, 1944

Four per cent, bonds, maturing August
1, 1951

Scrip and convertible dividend certifi-
cates not yet presented for redemi)-
tion or conversion

Total Liabif.itiks

Capital:
Capital stock:

Preferred, six per cent.

c u m u 1 a t ive, ])ar

value $100 per share,

authorized 540,106

shares, issued a n d

outstandijug 526,997

shares * 52,699,700.00

Connnon, par v a 1 u e

$25 i)er share, au-

thor ized 2,000,000

shares, issued l,t)09,-

696 shares

Connnon B, pai* value

$25 per share, au-

t ho r ized 4,000,000

shares, issued 3,134,-

135 shares 78,353,375.00

$171,295,475.00
Surplus, including $29,-

451,261.88 paid in . . 108,627,694.65

1,079,000.40
16,043.42

l,0f)8,l 55.74

790,495.50
5,360,402.93

145,950.00

831,250.00

8,049.00
9,299,346.99

40,242,400.0(1

279,923,169.65
$289,222,516.64

Leaf Tobacco Code Hearing

Public hearing on a j>roposed code of fair com-
petition for the leaf tobacco dealers, redryers, jiack
urs and storers, has been ordered bv Secretary Wal
lace, with the hearing set for 9.30 A. M., Wednesday,
l^farch 21, at the Mayflower Hotel. Harry C. Cook

March 15, 1934

has been designated as the presiding officer. The pro
posed code covers the business of packing, redryini^,
stemming, storing, and rehandling tobacco lumght in
its unstemmed fonn. Administration of the code would
be by a code authority of live members.

News From Congress

Musings of a Cigar Store Indian

_ 'AND

Fe D E R A L

Departments

XDEFINITE postponement of the hearings on
tobacco taxes which were sclieduled to begin
March 12 has been ordered by the House
Wavs and Means Connnittee because of the
taritr legislation asked by President Roosevelt. The
study of tobacco levies was designed to explore the
situation arising out of the complaints of manufactur-
ers of ten-cent cigarettes that they could not success-
fully comi)ete with the slightly more expensive brands
so long as they were required to pay a tax of six cents
on each package.

Bcause of the importance of the tariff legislation,
it was deemed best to postpone the study of taxation
until the legislation giving the President authority
to consummate reciprocal trade agreements with other
governments, in the making of which he would be em-
])owered to reduce or increase existing rates of duty
by not more than 50 pr cent., was out of the way.

Introduction of the tariff measure followed re-
ceipt at the ('ai)ital March 2 of a message fioni Pres-
ident Roosevelt, in which he i)ointed out that other
countries are to an ever-increasing extent winnimr
their share of international trade ))y negotiated recip-
rocal tariff' agreements and declared that **if Amer-
ican agricultural and industrial interests are to re-
tain their deserved place in this trade the American
(lovernment must be in a jjosition to l)argain for thai
l)lace with other governments by rapid and decisive
negotiation based on a carefully considered program,
and to grant with discernment corresponding oppor-
tunities in the American market for foreign products
supplementary to our own.

*'If the American Government is not in a posi-
tion to make fair offers for fair opportunities, its trade
will be superseded," he warned.

CJ3 CtJ Ct3

OLDING that both Federal and State govern-
ments have the right to regulate and fix prices,
along witli their power of other regulations
in the ])ublic interest, the I'nited States Su-
preme Court this month placed its seal of approval
upon any cost or price fixing ])rovisions authorized
under the national recovery or agricultural adjust-
ment acts. Th(' court u})held the conviction of a New
York gi-ocor charged with evading the New York State
milk law fixing tlie price at nine cents per (piart and
prohibiting any subterfuge for reducing the price, by
giving away a loaf of bread with two quarts of nine-
cent milk.

6

From oup Washington Bureau 62?Albee Builoing

The decision was reached bv a five-to-four vote,
as m the recent liberal decision upholding the Min-
nesota mortgage moratorium statute.

*'A state is free to adopt whatever economic ])ol-
icy may reasonably be deemed to promote i)ul)lic wel
fare, and to enforce that i)olicy by legislation a(lai)ti'd
to its purposes," the court held. "Tlie courts are
witliout autliority either to declare such policy or,
when it is declared by the legislative arm, to override
it. If the laws i)assed are seen to have a reasonable
relation to a ])roper legislative purfjose, and aro
neither ai-bitrary nor discriminatory, the reipiirements
of due ])rocess are satisfietl.

**And it is ecpndly clear that if the legislative pol-
icy be to curb unrestrained and harmful comjietition
by measures which an* not arbitrary or discrimina-
tory, it does not lie with the courts to determine that
the rule is unwise.

*' If the law-making body wffhfn its splierc of gov-
<*rnment concludes that the conditi(»ns or practices in
an industry make unrestricted competition an inaile-
quate safeguard of the consumer's interests, ])roduce
waste harmful to the public, threaten ultimately to cut
off the supply of a commodity needed by the* pul)lic,
or j)ortend the destruction of the industry itself," the
decision continued, "ai)propriate statutes ])asse(l in
an honest effort to correct the threatened cons<Mjuence
inay not be set aside because the regulation a(lo]»ted
fixes prices reasonably ileemed by the legislature to be
fair to those engagecl in the industry and to the con-
suming public."

CJ] Ct) [t3

FFK'IALS i>\' tile Xationnl Recover^' Admin-
istration and the Treasury Department are
studying plans for advancing credits to small
businesses, possibly with a partial guarantee,
as a means of aiding establishments which find them
selves in difticullies as a I'esult of the application of
code provisions which increase their production costs.
The administration has bet on' it a plan for the grant
ing of three yea 1- loans up to $12,r>on, the (lovernment
to guaiantee uj> l(. so per cent. There are also under
<'onsideration reconunendations for creating a new
method to pro\ i<le capital loans of up to $r)(M>0() for
a period of five to s<'ven vears.

In all probability, these loans would be made
through intermediate credit banks to be established
under a plan said t<» have already been apjiroved by
the Federal Reserve ( 'ouncil.

By Chief "Young-Man-Smoke-Cigars"

OR the pleasure of those readers who have
expressed their interest in our previous re-
searches, we are glad to reprint some para-
graphs from "The Passing of the Wooden
Indian" by John L. Morrison in the October, 1J)2S,
issue of Scribners'. It is described as ''a lively article
about the static cigar store l)raves who have almost
become onlv a memorv and a simile. Well-known
sculptors have carved them, curious people such as
Fid Ilen have owned them — and Mr. Morrison collects
them." The article, by the way, is illustrated by j>hoto-
ni'aphs from the author's collection.

C?3 Ct] Ct)

rr^VERYBODY knows what a wooden Indian is,
but nobody knows where a wooden Indian is.
A survey of the liome town will confirm this.
If the home town be Chicago, i^rooklyn,
Minneapolis or Baltimore, there is only one red brother
in wood keeping lonely vigil, while in New Orleans,
Cleveland, Washington, Los Angeles, Boston, Pitts-
burgh, Denver, Atlanta, Louisville or Detroit, not a
lone chief or s(pniw stands in solid dignity and beckons
the devotee of the weed. Manhattan has two, San
Francisco and Cincinnati a few. St. Louis profier three,
Kansas City two, Milwaukee two, Philadelphia three,
and London a corporal's guard. Reference is to cigar-
store Indians on duty on the traditional spot, the side-
walk. A few are kept inside tobacco shops as relics.
Some are safe in museums. Others, but not many, are
cached by hopeful dealers in antitpies.

Cj3 Ct3 Ct3

1110 zero hour for cigar-store Indians in the
big cities struck years ago, as the most casual
observer knows, but a popular impression ob-
tains that tobacco shoi)s in the smaller towns
anil villages are still sentinelled by Indians galore,
bearing the open box of solid-pine cigars and gazing
thoughtfully toward the nearest ocean — there only ;i
few years ago, possibly, but gone now — gone so quickly
and silent Iv that no one has misse«l them.

Ct3 Ct3 CJ3

(Continued on Page 17)

Th* Tobacco World

«-— -OODEN Indians are n<«! intiigenons tn Amer-
^\^ ican soil. As early as the reign of James 1
the wooden Indian was a familiar sight in
Merrie England. There's juctorial evidence
he was no novelty in KilT, tlie year Pocahontas died,
the year prior to Sir Walter Raleigh's beheading, and
only twelve years after the well-known and justly ccle
l»raled (lunpowder Plot of Mr. Guy Fawkes. The fig-
ure ha^^ character, thouich the cigar looks more like
llie horn of plenty on the old cMUitlKHise facade or in
<i!ie of those symbolic things about labor, cnninierct'
and agriculturt'. The sculptor doubtless ncxcr saw ar

March 75, /y.?-/

Indian. Little wonder that a writer, two hundred and
fifty-nine years later, described it as a 'negro.' Europe
had settled down in the belief that the American Indian
wore no clothes except a kilt of tobacco leaves — a won-
derful triad of utility when one thinks of it, at once
nether api)arel, currency and the makin's, to be drawn
on at will, up to certain limits of decency. The London
types were so Africanic that the public dubbed them
'black l)oys' foi- two hundred years or more, although
lliere was a nearer approacli I0 anthropological ac-
curacy in the ' Virginie-man,' l)oth types later super-
seded bv the 'Iliuhlnnder. '

Ct) Ct3 Cf3

HE woodcut of this ancient Indian shows him
against a background indicative of an apothe-
cary's shop. Tobacco was first sold by apothe-
caries, and the thrill of edging quietly to the
prescription desk is nothing new; in IfllT, on ])resenta-
tion of proper jirescription, one could get genuine pre-
Guiqiowder Plot Old Ilispanola leaf for family and
medicinal use. The figure stood on the counter and
not in front of the shop. Xearlv three hundred vears
later this was still the custom in the Netherlands; in-
deed, fiirures twentv-two to thirlv inches in height, gen-
orations later, were to be seen occusiuually in to-
bacconists' windows in New Y<»rk.

Cj] ft3 tt]

Ali be it from me to cast the slightest aspersion
on our Eurcqjean ancestors, especially the
j Nordic; but from all accounts, while everybody
in the luOii's believed in signs, those which
were to be seen rather than read wen- most esteemed,
such as the signs of the Zodiac, exenqJified, for some
unaccountable reason, in almanacs by a rather comely
gentleman with a recent major abdominal section, the
ends neatly turned back, exiMtsinu his internal economy
tn the vuliiai" uaze.

IS

Ct] [t] Ct]

T W'Ol'Ll) hv too encyclo])aedic to recoi-d the
Old World history of collateral and variant
tobacco >iuns and ligures, such as the tobacco
rolls, the (plaint i)ainted l)oards jiroclaiming
tlie jnys of snulT-taking, smoking and drinking (chew-
11m). While the Tmlus americanus woodensis orig-
inated in England, it was on the American soil ho
rea<'hed his grandeur of lineament and war |>aint. Of
the early wooden Indians, an odd, cupidlike Poca-
huiitas tliat once stood guard (ui Hancock Street, 1 »<»-.-
ton, dates from 17.">(>, admiring fiiends sa\ . The
pioneer aulhenticiled appearance of a cigar-store show
ligure was in 1770, when Christ«q)lH»r Demuth openrd
his little tobaciMt slir.p in Lancaster, Pa., not likely the

first of its kind in Anioiica but ainoni;- the earliest and
today the oklest. AVhik^ the ])i()neer Denuith vended
both eigars and snntV, the hitter was the more ])()i)uhir;
therefore it is not surprising that the lignre he sek'eted
was not that of a noble denizen of the traekless forest,
but a delieate iHinuet-tyi)e gentleman extending a snulT
box invitingly. For a eenturv and a half Ihis figure,
nuule by an unknown Ameriean wood carver, stood
vigil, a familiar liguic to Ixevolutionary soldieis,
Conestoga wagon crews, and travelers on this old high-
way to over the Alleghanies, the Far West of that day.
The figure, in recent years, has stood inside ihe shoj).

ALTDfOHF had cigar-store figures before
17^(0, according to local tradition, but, except-
ing an inii)ortation in 1830, there is a hiatus
in the history of wooden Indians until the
forties. 1). 11. McAii)in's tobacco store, Catherine
Street, New York, was sentinelled by a short, swarthy,
dignilied Indian as early as 1840; he followed his
owner to 77 Avenue 1) in 18(i(), and, in the eighties, to
the 'uptown' factory at Avenue I) and lOth Street,
finally retiring from the tobacco world to the hostelry
bearing his nuister's name, spending his time in the
lol)l)v, almost invariably near the cigai' counter."

95 Per Cent, of Farms Under Contract

OMPILATIOX of the results of the sign-up of
the flue-cure<l tobacco adjustment eimlraets in-
dicates that ])roducers tunc ottered eonti'acts
to cover ap])roximately !>.") i»er cent, of the eli-
gible farms, it has been announced Itv the Aurieultural
Adjustment Administration today. The sign-up repre-
sents more than l(Kl,(in(i contracts from the liue-cui-ed
area, according to officials of the Tobacco Section. The
distribution of contracts, by States, is as follows: Vir-
ginia, 11,000; North Carolina, (mJHHI; South Carolimi,
16,000; Georgia, 12,500; and I'lorida, lOOU.

Approximately 1500 fine-cured contracts have been
received in AVashington and are now being ])assed U])on
for rental i)ayments at the rate of H^n.oO ]>er acre for
each acre taken out of tobacco ])roduction un«ler the
contract terms. Ai)plications for price-ecjualizing i)ay-
ments accompanied a number ot" these contracts, and
checks covering these a]»])lications will go out with the
first iiavment checks. Thus far the onlv contracts ac-
eepted in the State offices and sent to AVashington for
acceptance and payment were those in which the 1 !).').'»
production was substantiated by acce])table document-
ary evidence and in which the siuner selected so i)cr
cent, of the 1933 acreage an<l i»roduction as the base
acreage and ])roduction for his farm.

Because of the over-run in both acreage and ])ro-
duction in 11K>1 and 11K>2, and in production for some
counties in 19.'>.'>, adjustments must l»e made that will
bring the contract figure.^ into line with official figures.

Every effort is ])eing made to have individual i)ro-
ducers adjust their figures and thereby obviate the need
for a])])lying a i)ro rata cut to all contract claims.

Api)lications foi' ])rice-e(pu\lizing payments, which
are ])rovided at the rate of 20 ])er cent, of the net sales
value of the 1933 tobacco sold before Se])tend)er 25th,
and 10 i)er cent, of the net sale value of such tobacco
sold after Se})tember 2r)th and ])efore the nmrked ad-
vance in i)rice have been made by ])ractically all of the
contracting farmers in Georgia, Florida, South Caro-
lina, border counties of North Carolina, and by a large
number in the new and middle belt of North Carolina.

The ])rice-equalizing payments are to be made to
compensate, in so far as possible, those producers who
sold their tobacco before im])rovement in ])rices re-
sulted from the sign-up of contracts and tlie fine-cured
marketing agreement. These ])ayments of approxi-
n.ately if4,300,000 will be divided l)etween States, as
follows: Florida, H^70,000 to 800 producers; (leorgia,
i|Jl,030,000 to 10,000 ])roducers; South Carolina, Jf^Mfi.'),
000 to 12,000 ]»roducers; and North (^nolina, $2,010,-
000 to between 30,000 and 40,000 i)roducers.

Produceis' claims regarding sales upon which the
l)rice-e(pudizing j)ayments will be nuule, are substanti-
ated by evidence j)repare(l from warehouse records
under the direction of the Tobacco Section. This work
is ])ractically completed, and a]>plications for payments
will be reviewed with the corres])onding production ad-
justment contract. Checks for these ])ayments are
expected to accomi)any tiie rentjd payments.

W. W. Wagner on State Liquor Board

NNOFNCHMFNT was made last week of the
appointment of \V. Worrell AVagner, former
member of the firm of .John AVagner iV Sons,
Dock Street, distrilmtors of high-grade cigars
and tobacco products, as a member of the Pennsyl-
vania Li(pior ('(uitrol Hoaid, thus briniiing the Board
to its full <piota of mend)ershi]) (three members), an<l
at the same tim<' placing on the Hoard one of the best
qualified men in the State for that position.

In naming Mr. AN'agnei*, (JoviMiior Pinchot said
he is *'i)ecidiarly fitted for the position because of his
long exjierienee in the purcha>.e <»f li(|uors."

Mr. Wauner, before )»i-ohibit ion, was a member of
the firm of .John Wagner k Sons. In announcing the
aiipointment Governor Pinchot said, "This firm is one
of the besi -known liquor establishments in Pennsyl-
vania. It has been in eontiiMKUis e\isten<'e, except fo!'
the period of national prohil)it ion, since 1847, when
8

it was established bv Mr. AVagn<'r's father. W. AVor-
lell AVagner retired from the business in 1919 and has
not re-entered it. AVhen he was a mend)er of the firm
he did all the purchasing for the company.

"He is thoroughly familiar with the work he was
selected to <lo. This fa<*t, t(»getiier with his high stand-
ing among the |)eople of I*hiladelphia, makes his ap-
pointment most desiral)le. "

Mr. AVagner is a native of Philadelphia, and now
resides on West School House Lane, Germantown.
His sunmier home is in Atlantic City.

He is a mend)er of the T^nion League, Art Club,
Germantown and Morion Cricket Clubs, Barge Club,
Schuylkill Fish and the I*hiladelphia Club. He is a
bnMher of .Tohn and Joseph AVagner, who during the
peri«)d of ])rohibition carried on the business of .lohn
AVagner cSi: Sons, at 23:» Dock Street, as importers of
high-grad*' cigars, mineral waters, teas, spices, jams,

Those penciled scrawls

are a sign of jangled nerves

If you're the stolid, phlegmatic sort of person
who doesn't feel things very deeply, you'll
probably never have to worry about nerves.
But if you're high-strung, alive, sensitive,
watch out.

See whether you scribble things on bits of
paper, bite your nails, jump at unexpected
noises— they're signs oi jan^Ud nerves.

So be careful. Get enough sleep-
fresh air — recreation. And make
Camels your smoke.

For Camel's costlier tobaccos never
jangle your nerves — no matter how
steadily you smoke.

COSTLIER TOBACCOS

Camels are made from finer, MORE EXPENSIVE
TOBACCOS than any other popular brand of cigarettes !

SMOKE AS MANY AS YOU WANT...
THEY NEVER GET ON YOUR NERVES!

TlllLir lyi CAMEL CARAVAN fmalmrii>t Chn Cny't CASA LOIUA Orchmilra anj atkmr HtaJlintrt Evry Tnxlay ami
I UnC in I Thmr^Jmy ut 19P.M.. E.S.T.-»P.M., C.S.T.-aP.IH.. U.S.T.-TP.M.. P.S.T..OMr WABC- Co/umtia Nmlwotk

HowareYOUR nerves?

TRY THIS TEST

0906^*

809102

778*2^
66A32*
82\86^

9816^*

Here is a series of numbers. Two
numbers in this series contain the
same digits . . . but not in the same
order. See how fast you can pick
out these two. Average time is one
minute.

Frank J. Marshall (Camel smoker), chess

champion, picked the two numbers

in thirty seconds.

Copjiiglil, ll'3l, it. J. lU'}iiulUi TuUitciv Cuiupiiii>

jellies, etc

^tarch 13, i^j}4

Tht Tobacco World

Re^ iew of Foreign Tobacco Markets

OLLOAVlXd is a ('ttuliiniatioii of I he it'\ "u'W

of foreign tobacco markols from the Marel;

1st issue of The Toi^aiho \Voi;ij). Tlie present

iiistahneiit (.'ni))rai'('s S\\ itzcrhuul, Philippine

Ishmds, Ariieiitiiia, CMiiiia and Czeehoslovakia. The

review is eoiiipiled from American commercial allache

reports.

SWITZERT.AXl^— Tlie Imlk of importefl leaf to-
])acco in Switzerland comes from the I nitetl States, hi
\\K\o Swiss imi)orts t)f this commodity amounted to
8098 metric tons, as com])ared with T.l'c' tons in 1!>.')'J.
The American share in this trade was 'S,]SV metric tons,
with a value of gold $l,().*)l\!>48, against .'Hol metric
tons, with a value of $l,()8r),;]nl in l!)o2. The tpiality of
the imports of American tobacco was iioticeablv lower
this vear, since the domestic demand was for the
cheajier grades. Sales of .Vmcrican cigarettes in-
creased from >r-K',4r)!) in 15K'>2 to gold $.')0,.']47. The in-
crease indicated here could be attributed to the new
Swiss tobacco sales taxes and in<'reased imjjort duties
which became effective after the devaluation of the
dollar. The ])ros}>ect of higher duties and taxes,
coujjled with an o})i)ortunity to ])urchase clieai)er in
the United States due to the low rate of the dollar,
caused importers to i)urchase large stores, which
showed sul)stantiallv in the statistics for ]IK>3. {Amcr-
lean Consul Maurice W. Alfatfer,)

PlllLlPPlXK ISLANDS— The total value of all
tobaccos shipped from the Philii)i)ine Islands during
19o3 amounted to 10,3r)r),U(K) pesos. >]xi)orts of leaf
tobacco totalled lt>,S!»7 tons, valued at o,(!8rj,( K M ) pesos;
cigars, 196,141, niH) |)ieces, valued at f),ol(»,()UU pesos;
cigarette^s, 21,.j8U,0iM) ijicces, valued at ()2,(HH) pesos,
and other tobacco iiroducts, 909 tons, valued at 292,-
UOO pesos, line to reduced imports of leaf tobacco
from the Philippines by the Spanish Tobacco Monop-
(►]>, a loss of 2U i)er cent, in quantity and <»\ <'r one-third
in value was recortled for the ycai'. Spain contimied to
hold first place as an importer of J*hilipi)ine tobacco.
The Lilited States accounted for the l)ulk of the cigar
trade, with approximately 1S(MHHI,0()U j»ieces, an in-
crease of about 10 ])er cent, over 1I>.'j2. (AhHrifau
Trade Couiuiissiom r K. I). Ih.^ii r.)

AI\(tKX1TXA — Imports of toi»acco and cigarettes
iiito Ai'geiitina have dropped otf con.->i«h'rabIv in the
last thi'ee years, the decrease ])cing attriliuted to three
factor> current ecmiomic conditions, the d«'\-eloj)ment
of the local industry, and taxation. According to a
report by American Vice Consul John < . Pool, made
public by the Tobacco Division, Department of ( "om-
merce, the United States still enjoy> a laii* ])ercentage
f)f the Argentina tol)acco tiade, in >i)ite of the ap-
parent general declining market.

It has been noted that a steadv incrcfise was legis-
tered from 1925 up to and through P).'>0, an<l since then
a droj) to a point where l!i."»2 importations were ajipi'ox-
iniately 60 per cent. le>s than the peak year. There is
.i«> doulit but that the (h'cline in tlie value of the ]M'so
on international exchanue has been a factoi- in cieating
this situation. Imported cigarettes ha^■ ' become moi'e
expensive, and c<iiise(piently within the reach of fewer
people. On the other hand, the consumption of the
cheaper grade of cigarettes is estimated to have more
than doubled in the last two years. T'lie same liolds

JO .

true with regard to tobacco, the importations of which
have recently decreased.

During 19ol, importations of leaf and cut tobacco
increased even though the restrictive influences of the
ecniiomic depression were being felt. This is accounted
lor bv large iMirchases of stocks bv local nianufactur-
iiig ct>mi>anies who, having heard rumors of increases
III impoit duties, imi)orted as much as possible for
liilure use. Jt mav be mentioned in this connection
ihal the 10 \)vv cent, emergency surtax was decreeil on
()ctol)er 6lh of that year, antl put into etTect three days
later. Imports of leaf tobacco from the L'nited Stales
duiing 19o2 were valued at 29(),473 gold jjcsos, repre-
senting api)roximately one-third of the 19.*)1 figure.
The tobacco importecl from the Uniteil States is the
\ irginia and Kentucky types, from (J recce and Tur-
key, Turkish type, and from l*araguay, black toi>acco.
Tliese vririous types are used for blending with the
locally- grown product.

Cigarettes are imported from twenty-three coun-
tries and imports of cigarettes from the United States
predominate. The value of 1932 imjjorts from the
l'nited States totalled 184,755 gold pesos, which is less
than one-half of I he 1931 figure. Nevertheless the
United States continues to occupy first i)lace, folhjwed
by the United Kingdom and Italy. Generally speak-
ing, American antl British cigarettes are of the most
exi»ensive type, the Italian blend being more i^opularly
priced.

The use of locally produced tobacco has increased
greatly during recent years. It is estimated that about
twice as nuich of it is used as of the imptuted variety.
The cheaper grades of cigarettes, especially the lU
centavos class, are made entirely of it. It is said to
1» of ]Joor (juality, however, and not suitable for use
alone in the more expensive types, which are l)lended
with tobacco from other countries. It is estimated that
one large concern is using approximately 40 per cent.
(ti the locally-grown product in their nnuiufacture,
whereas two years ago they were using approxinuitely
20 i)er cent. At one tune they used none. It may bo
'iicntioned also, that this firm is making cigarettes of
\'irginia type of tobacco largely grown in Argentina,
ami thai their sah' is steadily increasing. The price of
tjjese cigarettes ranges from 20 to 35 centavos for
packag<' of ten, whereas the standard American
brands (large size) retail at 1.10 i)esos. This firm
al>o manufactures several of the stanrlard English
brands, importing the raw material for their manu-
lacture.

The total consumption of tobac<jo in Argentina is
-aid to l)e stable at the moment, but a decided tendency
ha> been shown in favor of cheaper tobaccos and cigar-
ettes. This has necessarily meant a decrease in the
sales (d' the imi»orled articles, and there is but little
in<licatioii of their regaining a stronger position.

(JlllXA — According to olhcial records of the To-
bacco Division, Department of Connnerce, the lejif to-
bacco trad*' (d the United States with China shows a
uain of ajjproximately 27 per cent, in value during
VXVi over the ])receding year. In weight there is a
slight dilVerence in favor of 1932. Preliminary figures
show that the leaf tobacco trad(» during ]!i33 amounted
to 73,924,448 ])ounds, \alued at $9,728,252, compared
with 74,780,896 pounds, valued at $7,654,312 during

The Tobacco World

^ ^^

A sensible package
10 cents

ghCut

C> I9M. Liccrrr tt Myers Tobacco Co

the pipe toLacco that's MILD
the pipe tohacco that's COOL

«_yGZf.y see/n to lilie H

March 75, 79?^

tt

1932. The cigarette trade shows a slight increase in
\olume and a slight decrease in value during 11)33, as
compared w ith VSo2. The 11)33 iigures show 81,4()0,()U()
cigarettes, valued at i^23h,4L"), and those of 11)32 show
81,15-1,01)0 cigarettes, valued at $255,22l).

From the standpoint ol* tliinese statistics as re-
viewed by Assistant Commercial Attache A. Bland
Calder, JShanghai, leaf tobacco imi)orls into China
from the United States in 11)33 were the lowest I'or sev-
eral years. This may be accounted for bv the fact that
after October 1, 11)33, o\er 32,000,000 pounds of leaf
left the United iStates en route to China. In other
words, it is obvious that a great difference may ])e ac-
counted for "in transit".

As stated in the report of Mr. Cidder, the linal
compilation of Chinese importations will probably
show a iigure but little above 53 million iiounds for the
year, comijared with approximaicly 7l) million pounds
for 11)32, and more than 150 million ijounds for the best
previous year. Approximately \)7 per cent, of 11)33
imports were entered at Shanghai, the center of the
cigarette manufacturing industry. Actual gross im-
ports into Shanghai for the full twelve months period
of 11)33 totalled 52,481,000 pounds, u\: which }»8..)3 i)er
cent., or 51,714,000 pounds, was from the United States,
the small balance consisting in part of ciuar tobaccos
from the Philippine Islands. Api>roximately 2,542,000
pounds were re-exported during the year. The ])ulk
of this consisted of return shijunents of old croj) to-
bacco to the United States to meet needs, for certain
grades, created by a short 11)32 cro]) in the United
States. The short American 11)32 crop which resulted
in a limited supply of the grades ordinarily used in
China, along with higher ijrices, enabled Shanghai
dealers to clear up heavy over-stocks of 11)31 and older
crop tobacco with minimized losses on a great deal of
it and satisfactory protits on the balance, such that
stocks at the end of 11)33 were relatively moderate
consisting largely of 11)33 crop tobacco.

The higher Am.erican prices of toi)acco in United
States currency have for the most part been otfset by
exchange such that the Chinese factori**s are able this
season to buy better grades of American tobacco at tile
same prices paid for lower grades last year.

The growing of \'irginia ty])e Bright Flue-cured
leaf in China in 1D33 exi)ande(i with indications that
linal estimates may run to 125 million jiounds. This
is the largest crop on record. Production of this type
of leaf in China began under American tutelage in
11)15, when upwards of half a million pounds -were
grown. Ten years later production was running from
50 to 80 million pounds per annum. The 11)32 crop
was somewhat above lOO million pounds. Due to
smaller returns to farmers for the 11)33 croj), it is an-
ticipated that acreage may be smaller in 11)34. All
crop estimates are subject \n modilication from time
to time as more conclusive data becomes available.

The large 1933 croj) of China leaf, together with a
45 per cent, advance in December, 19.33, in cigarette
taxation, will without doul»t make for further increases
in the ijr()]>ortion of China-grown tobacco in many
brands and will mean the elimination of American to-
bacco entirely fiom many of tlie low-grade brands of
cigarettes. Xo one can jiredict what liie elTe<'t of the
higher taxation will be on cigarett ' consumption.
Manufacturei's exi)ress the view, howe\ei-, tliat the
taxed production l)y legitimate industry will droj) and
that untaxed illegitinude traffic in ciii:arettes will in-
crease. Shouhl cigarette consumjition in China hold

12

up to a Iigure of 70 billion cigarettes, then it is con-
ceivable that the consumption of American leaf to-
bacco may be more nearly average than was the case
in 1932, though not as promising as in previous good
years. While manufacturers have been endeavoring
to devise means of absorbing the new^ tax and the dis-
locations to cigarette trade have been considerable in
making adjustments to the new tax schedule only the
experience of the next few months will leveal whether
cigarette consumi)tion will be to a great degree un-
favorably alfected.

OtVtake of American leaf from Shanghai stocks in
December following the imposition of the new tax was
only about (iO per cent, of normal for this season of
the year, with definite indications that manufacturers
are using larger proportions of local leaf in blends
and are exhibiting a tendency to confine purchases of
American leaf to better grades and lesser (piantities
than heretofore used.

Cigaiette manufacturing is the third largest of
China's modern industries, and is largely concentrated
in Shanghai, with several huntlred cigarette machines
installed in this district, though not necessarily all in
operation. About 400 of the nuichines are in Chinese-
owned factories. Many of these have improved their
(Mpiipment during the year by installation of more up-
to-date machines, discarding anti(puited tyjies. There
are still ai)proximately (iO Chinese cigarette factories
operating, but 15 of these ijroduce less than 10 cases of
50,000 cigarettes each per month, while 2(1 produce less
than 100 cases each per month. Only 10 Chinese con-
cerns produce over 1000 cases per month. Houghly,
over 00 per cent, of the total i)roduction by Chinese
plants is by the four largest concerns. There is room
for improved management in nearly all plants. Many
of the smaller factories operate on a virtual '*hit-or-
miss" basis, with little accurate knowledge of their
actual production and distribution costs, such that it is
believed in the keen competition that exists, numbers
of them will eventually be eliminated or be obliged to
coml>ine and adopt stricter control, as well as better
accounting systems.

Cigarette importations have fallen off to negli-
gible (puuitities compared with i)revious }ears and may
be expected to show still further decline because of
the high tariffs and comi)aratively low local produc-
tion costs.

Imports of cigarettes into China for eleven months
ot^ 1933 totalled only approximately 223 million i)ieces,
of which about 64 millions were from the United States.
The total import is less than a third of the volume
lnought in during 1932. Five years ago cigarette im-
ports to China were running over nine and a half
billion })ieces annually. Increasing tariffs and taxa-
tion have reduced this figure to relatively negligible
amounts.

CZF( 'llOSLOVAKIA — According to information
made public by the Czechoslovak Tol)acco Monopoly,
its receipts in December, 1933, amounted to 153 million
crowns ($4,600,000 gohl), as cxmipared with 142 million
<'rowns ($4,200,000 gold) received in November, 1933.
I)uring the year 1933 the gross receipts of the Monop-
ctly amounted to ISOS million ciowns ($54,200,000), as
comiiared with 1975 million crowns ($59,200,000) in
1932. The net anuHint turne<l over to the State Treas-
ury in 1933 totalled 1315 million crowns ($39,400,000),
as compared with 1326 million crowns ($39,700,000) in
1932, a (lecrease of 11 million crowns ($300,(KM)).
i American Comtuercial Attache Sam E. Wonds.)

The Tobacco World

Cigarettes 1, 2, 3, in Advertising Leadership

N presenting the findings of Media Records,
Inc., whom they asked to determine last year's
|{ newspa])er linage of the 300 largest national
advertisers, the ])u])lishers of Printers' Ink
said: **The figures nuiy sur])rise you. For instance,
if you guess the leader to have been General Foods,
you'll prove yourself a bad handica|)per — and not
inuch better if you assign the leadersliip to General
Motors. If you'll take a tip, lay your bets like this:
\i. J. Reynolds to wdn, Liggett & Myers to place, and
(ieneral Motors to show\"

As a matter of fact, if you list the individual
advertisers, the American Tobacco Co. easily cap-
tures third i^lace, since General Motors represents the
linage of eighteen separate accounts, while the Amer-
ican Tobacco ('o. advertising in news])a])ers during
1933 was devoted exclusively to Lucky Strike.

Thus the three largest advertisers in newspapers
are cigarette manufacturers.

Of the total of 300 companies listed, 12 are to-
bacco companies. The following table gives the num-
ber of agate lines of advertising used by each one of
the dozen. The figures in parenthesis show, in each

case, the nmnber of cities in which the advertising
appeared.

R. J. Reynolds Tobacco Co.: Camel, 16,828,670
(81); Tobacco Products, 322,127 (80); Total, 17,150,-
797.

Liggett & ^Fyers Tobacco Co.: Chesterfield, 13,-
5S4,34(') (SI) ; Granger Rough Cut, 1,404,246 (32) ; To-
tal, 14,988,586.

Amei-ican Tobacco Co.: Luckv Sti-ike, 12,092,407

(81).

(Jeneral Cigar Corp.: White Owl, 857,251 (62);
Van Dvck, 440,800 (27); Robert Burns, 27,655 (6);
Total, 1,325,706.

P. Lorillard Co.: Old Gold, 1,267,351 (70).

Bavuk (^igars. Inc.: Bavuk Phillies, 909,095 (34) ;
^^apacuba, 39,342 (4) ; Total, 948,437.

(J. IF. P. Cigar Co.: El Producto, 730,864 (52).

Webster-Kisenlohr, Inc.: Girard, 279,546 (17);
Tom Moore, 18,596 (8) ; Total, 298,142.

(V)ngress Cigar Co. : La Palina, 170,830 (20) ; Rec-
ollection, 109,291 (9); Total, 280,121.

K. Regensburg & Sons: Admiration, 177,738 (3).

Axton Fisher Tobacco Co.: 141,240 (46).

Consolidated Cigar Corp.: Dutcli Masters, 66,467
(9) ; Harvester, 56,205 (15) ; Total, 122,672.

4700 Acres Advisable Shade Acreage

KCRKTARYOF A(}RIcrLTrRK HKXRYA.
WAUiACH has announced that the advisable
acreage for Connecticut Valley shade-grown
tobacco, IT. S. Type 61 (a), for jnoduction in
1934 is 4700 acres. The aniiouncement of the acreage
is in accordance with tin* marketing agreement ©n*
lered into several months ago by handlers of this tyjMB
of tobacco in ('onnecticut, Massachusetts, Xew
Hampshire aiul Vermont. Fndei- the maiketing agree-
ment the acreage committee set up undei- the agree-
ment is to allot the 47i)0 acres of production among
i;rowers on an ecpiitable basis, and parties to the agree-
ment and license can handle only the production from
>uch allot te<l acreage during the 1934 crop year.

In a statement concerning the advisable acreage,
J. B. Hut son, chief of the Tobacco Section of the Agri-
cult uial Adjustment Administration, said, "The acre-
age set forth, 4700 jicres, would produce, at average
yield, a crop slightly smaller than the consumption of
the 1932-33 marketing season, and a crop approxi-
mately 10 ])er cent, smaller than the estimated con-
sumption of the current marketing season. Indications
are that prices received by growers for this tobacco
during the current season are averaging approximately
40 per cent, more than those received a year ago.

"It is believed that with the 1934 croj) limited to
4700 acres, some reduction in excess stocks would be
brought about which should contribute to further im-
provement ill th<^ ])rice situation."

Marketing Agreements Effective December 1

KCRETARY OF A(iRIcrLTURK liEXRV A.
WALIiACH has signed two marketing agree-
ments for dark air-cui*ed and lire cuicd to-
bacco, the Agricultural Adjustment Adminis-
tration announced. Th(» agi'eements were nia<le etVec-
tive as of December L 193.3. In one of the agreements
manufacturers of snutT agree to purchase specified
<|uantities of these types of tol)acc<> at minimum avei-
age prices for the season langing lu'tween 7' i to 14
cents per i>ound. Since early in January, when the
agreement in regard to connnitments and minimum
piices was tentatively reached, prices <if the snuiT
grades have steadily advanced.

Purchases of minimum (pnintities l>y domestic buy-
ers of (ireen River, One Sucker, and Virginia sun-cur<Ml
tobacco at specified minimum average prices are pro-
vided for in the tither agreenuMit. Prices for these
ty|)es have also ex]H'rienced a steady advanct* since an
agreement was tentativelv reached earlv in Januarv.

March 13, 1934

These types have been selling at prices ranging from
50 to more than 100 i)er cent, above the price levels of
th<' 1!)32 marketing season.

OLD AGE OF CIGARETTES

Cigarettes were known in Brazil and other parts
of South America as early as the middle of the
eighteenth century, writes a correspondent ([uoted by
the Irish Toharm Trade JnitruaU and from there they
were introduced into Si)ain, where Casanova learne<l
the habit of cigarette smoking. France was the next
stronghold of the cigarette, though not until the 1840's.
Then we find travelers in the Auvergne and the Rhone
country saying not only that the habit of smoking
cigarettes is (piite la grandc nmdr of late with certain
French ladies, l)ut even that the beggars in the streets
have paper cigars (called cigarettes) in their mouths.

i3

"DOUBLE CIGARETTES" IN 1865

HAT there is historical precedent for tlie inaiiu-
facture of long cigarettes, to be cut to standard
length before smoking, is shomi by tlie follow-
ing extract from Count Corti's '* History of
Smoking": ''It was in Austria in 1865 that the first
real cigarette — tlie 'double cigarette' as it was called —
was introduced by the Kegie ; it was about three times
as long as tliosc of today, with a moutiipiece at eithei-
end, and was cut into two before using. The demand
for them increased so rapidly that in 1806 sixteen mil-
lion were sold in Austria. Before long, however, they
made way for the single cigarette of finer quality, while
the cigar, especially the Virginian variety, continued
to hold the first place well into the 'eighties'; the
Emperor Francis Joseph, for instance, always pre-
ferred a cigar."

The Axton-Fisher Tobacco Co., Louisville, Ky., is
now putting out an eleven-inch cigarette, which is four
cigarettes in one. It is named Head Play.

NEW ADJUSTMENT RULINGS

LEVEN new administrative rulings on tobacco
adjustment contracts have been announced bv

•

the Agricultural Adjustment Administration.

The rulings, for the most part, are interj)reta-
tions of certain general conditions arising under all
tobacco contracts. A few outline ]n-ocedure under spe-
cific contracts, otTering new o]itions for base acreage
and production to farmers signing fire-cured and Vir-
ginia sun-cured contracts and an (»])tion for the base
yield per acre in certain areas in case of Maryland to-
bacco.

Instructions for determining choice of cf)ntracts
when ditfcrent types of tobacco are grown on the same
farm, the manner of handlinu a contract on a farm
rented for cash for VXU only, division of the first ad-
justment ])aymciit ])etween landhu'd and tenant, and
possible excei)tions by which one «»f a grouj) of farms
may be exem})tcd from a contract, aic pi-ovidcd for in
the new rulings.

BAYUK OPPOSED TO SECURITIES ACT

Harry 8. Kothschild, president of Bayuk Cigars,
Inc., in a letter to .stockholders last week, set forth hi>
()l)inion that if the Fletcher-Haylnun Hill (National
Securities Exchange Act of V.rM) is enacted into law in
its present form, Bayuk Cigars, Inc., might find it
iiuulvisable to continue the listing of its stock upon
the New York Stock Exchange, and term- a- "drastic"
some provisions of the bill.

Under the registration statement required by the
bill, according to Mr. Kothschild, the ((.nijianv must
agree to abide by all future rules and regulations nuule
by the Federal Trade Commission. In addition, the
bill confers special powers on the commission over
listed com])anies, which are so extensive that, to a large
degree, the commission would control the management
of listed corporations in matteis, which, in the opinion
of officers of Bayuk Cigais, should be left to the direc-
tion of tlie l)oard of directors.

In his letter, Mr. Kothschild asks them to urge
their representatives in Congress to vote auainst th(^
passage of the bill.

Bayuk Cigars, Inc., has its ueneral offices in J*hila-
delphia, where also are lncat<'d four of the company's
twt'hc cigar manufacturiim ])laiits,

t4

"WORLD'S CHAMPION SMOKER

a

X BKKHITOX, EXliLAND, we learn through
the Canadian Cigar and Tobacco Journal, there
is a pretty, blue-eyed blonde who lays claim to
being the world's champion smoker. She is
twenty-seven years old and her name is Miss Kathleen
V\'onde AVest. Every day of her life she smokes from
lifty to sixty cigarettes, besides several pipesful of
sli-ong tobacco, just to add variety. In a recent com-
l»etition, which included men as well as women, she
smoked continuously for nineteen hours, "chain-
smoking ]f)() cigarettes, an average of one every six
minutes." She easily out smoked all her competitors,
and at the final put!' of hei- IDOth cigarette she was only
slightly dizzy, according to her own statement.

Fpon medical examiiuition, the only advice her
l)hysician could give was to "have a few hours' rest."
When the cham])ion gets tired of cigarettes, she cuts
them out for a tVw days and manages to smoke about
two ounces of good strong tobacco — "for I also like a
]iipe. " AVhat a woman!

TAX HEARINGS POSTPONED

Announcing a temporary postponement of the
h(s-irings on tobacco taxation, which were scheduled to
be held on March 12th before the subcommittee ap-
j)oiiited by the AVays and .Means Conmiittee, Congress-
man Fred M. Vinson, chairman of the sul)committee,
issued the following statement :

"The tobacco tax hearings schedided ])efore the
subcommittee of the Ways and Cleans Committee on
March 12th are tem))orarily ])ost]ioned. This action
was announced by I\epresentative Fred M. Vinson, of
Kentuckv, chairman of the subconnnittee, todav. This
action was taken on account of the fact that the tarifT
bill will be under consideration throughout the time set
apart for the tobacco tax hearings.

"Mr, Vinson stated that while no definite date is
assigned for the tobacco tax hearings, it will be his pur-
pose to set the hearings at the earliest dale possible
after the conclusion of the taritT measures."

It is expected that the new date for the tobacco tax
j'cai'ings will be annoinicetl short Iv.

GOLDSTEIN BAYUK

Miss Bernice Estelle Bayuk, daughter of Mr. and
Mrs. Sanmel Bayuk, of Wyncote, Pa., and Samuel
(joldstein, son of Mr. and Afrs. William Goldstein, of
Denver, were married cm March Kith in Adath
.Teshurun Synagogue, Broad and Diamond Streets,
Philadelphia. Kablu Max D. Klein officiated. The
bride was given in nuirriage by her fatlier. Chairman
of the Board of Bayuk Cigars* Inc. Albert Freewahl
was best man. Following a lioneymoon trip in Denver,
Mr. and Afrs. (Joldstein will live at the Westluiry,
Fifteenth and Spruce Streets. Philadelphia.

DEISELWEMMER GILBERT REPORTS

Deisel-Weimner (iilbert Corji. reports for liKV^, as
certitied by indejjendciit auditors, net profit of $25J),75<>
after charges, depreciation. Federal taxes and pro-
xision for ])ossil)le los> (A' funds in closed l)anks, equal,
after 7 per cent, preferred dividend requirements, to
x'Veiiiy live cents a share on 204,.'?20 sluires of conunon
stock. Tliis compares with $2^X)JiU'), or eighty-five
<ents a shaie on 20r>,r»N(J <M»ininon shares in l!>32. '

Tht Tobacco World

f)HIbADEl2«>MIA.

I <

MAC" TAKES A VACATION

(j. ^FacALLISTER, known familiarly as
*'^Iac" to everyone in the trade in Northern
New Jersev, where he is Bavuk territorial
manager, and distinguished, among other
things, by his disinclination to take a vacation, sur-
prised his friends by loading the Missus into the car
and driving to Miami and otlier Fhirida points for ten
(lays' recreation. He returned home full of orange
juice and an and)ition to make this the biggest year
for Phillies in his bailiwick.

Jacob Mendelsohn, of Chicago, has joined the
Bayuk selling organization with head(iuarters in the
Windy City, to look after sales of Bayuk products in
lliat sector, ill conjunction witii Zolla Bros., distrib

utors.

Amster Kirtz Cigar Co., of Cleveland, is spread-
ing the gospel of B. 1*. denuuid and increasing dis-
iriluition, with the assistance of Bayuk Salesman I*.
T. Morris.

C M. Bristow, Bayuk salesnuui, has been work-
ing with Huser Cigar Co., Huntingdon, Ind., Bayuk
distributor for that region, and is putting the Phillies
before the consumer in a most effective nuinner.

The ciack Bavuk bowlini,^ team is getting all set
lo establisii new records in strikes and spares at tlie
A. B. C. tournament in Peoria, which opened on March
"^th and will close on A])ril !Mh.

Cigarette Time is being featured by Vahn v^c Mc-
Donnell in their chain of retail stands througliout the
city with good success. This i- a nientliolate<l ciga-
rette retailing at fifteen cents. The new brand is be-
ing supplied to their own stands only.

Medalist sales are sh<»winLi increases here since
the advent of new sizes: Xew Yorker and Kitz, re-
tailinir at ten cent>:: Biltmnre and Plaza, retailing at
two for twenty-five cents, and Wjddorf, retailing at
fifteen cents. Vahn & McDonnell are local distril)utoi>.

Monticello smoking tobacct), a high-grade mix-
lure of John Wagner iV: Soti>. is expanding in sales
steadily and in a liighly gratifying \olume. Althougli
no advertising has been done on this mixture, it now
has a wide distribution in the Mid<lle West and other
sections of the countrv,

March 15, 1934

Trade Notes

Kool cigarettes, the recently introduced menthol-
ated cigarette of Brown & Williamson Tobacco Corp.,
are meeting with a good demand here and showing
substantial and continuous increase in sales.

Abe Caro, Optimo representative, was in town
last week visiting the local trade and made Yahn &
McDonnell offices his headquarters while here. Opti-
mos are holding their })lace well out in front here.

Orders continue to roll in to Royalist headquar-
ters, Orabosky Bros., Inc., North Second Street, and
the factory is working to capacity in order to satisfy
the demand, and at the same time preparations are
going forward for the removal of their factory oper-
ations to larger cpuirters about April 1st.

The new Banquet cigarettes, product of Simpson,
Stud well & Swick, are being distributed here by Yahn
^- McDonnell and are enjoying a nice sale. The ciga-
rette retails at five cents each in individual glass tubes.
Frank Swick paid the local distributors a visit last
week and was nmch gratified at the progress the new
cigarette is nuiking here. His company could not sup-
ply the demand for this brand for some time, but in-
creased i)roduction facilities have nearly equalled the
denuind at the present time.

John Wagner & Sons report that there is a con-
siderable improvement in the cigar department of their
business, particularly attributable to the end of the
prohibition era. High-grade cigars in the top sizes
particularly have shown a marked improvement in re-
cent months. Among the particular brands distrib-
uted by this firm, and which have enjoyed a wide sale,
are the Don Sebastian, (Arango y Arango) ; Garcia y
Vega, ((larcia y Vega); Wagner, (John Wagner k
Sons), and importeil brands.

J5

CIGARETTE TAX REDUCTION

HAT leading cigarette mamifaeturers are join
iiig in a request to the House Ways and Means
Commit toe at AVashington for a reduction in
the tax on cigarettes of from $1.20 to $1.80,
was revealed at the annual meeting of Liggett & Myers
Tobacco Co. by Fred J. Fuller, counsel. Factors
lilvely to })revent a reduction in the tax at this time,
Mr. FuHer pointed out, are the short time Congress
is to ho in session and tlie immediate loss of rev^enue
to tlie (Jovornment. He estimated that the loss in
Federal income entailed by a cut in the tax would bo
gradually made up by cigarette consumption.

According to Mr. Fuller, Kepresentative Vinson
favors a paring down of the tax on the ground that
it would enable larger sales and higher j^rices to the
farmers through increased tobacco consumption. He
states that as the tax on cigarettes was raised from
$2.05 to $3.00 at the time the prohibition amendment
was adopted, to replace the revenue loss on liquor, it
is now timely to reduce tlie tax.

In answer to a query regarding the price rise on
cigarettes in January of this year, J. W. Andrews,
vice-president, took the occasion to inform stockhold-
ers of the tendency towards increased competition
from 10-cent brands. This tendency, he added, would
tend to be offset as people generally obtain more
spending money.

ANOTHER BROWN & WILLIAMSON ADDITION

UE to increased demand for the products of
the Brown & Williamson Tobacco Corp.,
ground was broken this week for the erection
of an additional factory building in Louis-
ville, Ky. The company already has a large and thor-
oughly modern plant in that city, and the additional
factory building will be of brick construction, five-
story and basement, measuring 66 x 215 feet, thor-
oughly modern and with the most up-to-date equip-
ment obtainable. The new buihling will be immedi-
ately adjoining their present buildings and will give
the company 80,000 square feet of additional factory
space.

The company's brands include Dial, Bugler,
(rolden Grain, Target and Sir Walter Raleigh smoking
tobaccos; and Kool, Wings and Raleigh cigarettes. All
of these brands are gaining in popularity steadilv,
which has necessitated the building of an* additional
factory so that production can be increased propor-
tionate! v.

AMERICAN CIGAR EARNINGS

Tlie American Cigar Co., which is controlled bv
the American Tobacco Co., reports for 1933, as cer-
tified by independent auditors, net income of $2,666,-
628 after amortization, Federal taxes, etc., equivalent
after dividends on the 6 per cent, preferred stock to
$10.33 a share on 200,000 shares of common stock.
This compares with $10.56 a share on the common
in 1932.

The Congress Cigar Company for 1933 had a net
loss of $170,971 after taxes, depreciation, interest and
adjustment of tobacco inventories, compared with a
1932 profit of $274,228.

RECOVERY REVIEW BOARD

OVING to protect small enterprises and pre-
vent monopoly under recovery codes, -Presi-
dent Roosevelt on March 7 issued an Execu-
tive Order creating a National Recovery
Review Board to investigate complaints that codes
were so working as to build up monopolies to the det
rinient of small indei)endent enterprises. The pur-
})ose of the new agency, it was set forth in the order,
will be to, ** ascertain and report to the President
whether any code or codes of fair com])etition ap-
j)roved under authority of Title I of the National In-
dustrial Recovery Act are designed to promote mo-
nopolies or to eliminate or oppress small enterprises
or operate to discriminate against them, or will permit
nionopolies or monopolistic practices; and if it finds
in the affirmative to specify in its report wherein such
results follow from the adoption and operation of
any such code or codes; and to recommend to the
President such changes in any ai)proved code or codes
as, in the opinion of the board, will rectify or elimi-
nate such results."

It was also made known at the White House that
the President will ask Congress to extend the licens-
ing provisions of the recovery act for another year.
These sections of the measure were to apply for one
year only. They have never been invoked, 'but have
been held over the head of industry as a threat in the
event of attempts to violate codes.

TOBACCO IN ECUADOR

ECUADOR — While published figures for the four
government monopolies of alcohol, salt, tobacco, and
matches, show a substantial sum of revenues collected
above expenditures, the business of none can be said
to be actually profitable. The tobar-co estanco lias
large supplies of tobacco on hand, much of it now unfit
for use, and is unable to purchase the entire new crop,
although no other outlet for the products is permitted.
( American Cfmsul Gcticral IL B. Quarton.)

Harold Allely is making the rounds among the
trade in the interests of the products of the Christian
Peper Tobacco Company, and fast becoming ac-
quainted in his new field. The Peper ('ompanv prod-
ucts are well placed in this territorv an«l enjov'u good
sale.

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name

Street No.
P. O

.State

i6

News from Congress

{Continued from Page 6)

Tkt Tobacco World

XITIAL figures showing the effect of the de-
])ression upon conditions in trade and business
will be issued in the near future by the United
States Census Bureau. As a result of the in-
vest igat ion, the first ever to be made by the Govern-
iiirnt in this field although similar information is com-
piled periodically for the manul'acturing industries,
i|i(> ictail tobacco merchants will ascertain just what
has ha])pened since 1929, not only in the way of store
riiiployment, but with respect also to sales and buying
habits.

By comparison of the figures now being comi)iled
witli the data of the 1929 census of distribution, it
will be ])ossible to determine the decrease in business
volume during the past four years; what kinds of
i>usiiiess suffered most and what kinds experienced no
decrease or had an increase; what changes have taken
place in buying habits, and whether chain organiza
lions sland deiiression better than independent estab-
lishments or vice versa.

The study will also show the changes which have
occurred in the position of wholesalers, whether there
has been an increase in direct selling to consumers, the
extent of reduction in employment in various trades,
and changes in wages.

Of considerable importance to retailers, the sur-
vey will disclose any significant changes in inventory
or credit instituted bv the various businesses, and the
proportion of current business sales volume repre-
sented 1)V sales taxes.

£t3 Cj) Ct3

ONCERKS whose violations of the Federal
Trade Commission Act are disposed of by the
signing of stipulations that they will no longer
continue the practices complained of will here-
nftor be deprived of the protection formerly given
iliem through the withholding of their names by the
I'N'deral Trade Commission. Under a new ])olicy
idopted by the commission, all cases settled by stipu-
lation will be made a part of the public records. The
• ^'termination to j)ublish names in such cases follows
a recent decision of the commission to make ])ublic
the details of formal complaints charging unfair trade
practices as they are issued instead of upon final de-
termination of the case, as was the practice for many
years.

Affording a means of correcting unfair methods
of competition without going through the formal ])ro
«edure of litigation, the commission's stipulation i)lan
lias been adopted in more than l.jtK) cases since 192'),
most of which involved minor abuses.

The ])rocedure calls for a signed agreement be-
tween Ihe commission and the respondent in which the
latter agrees to cease and desist from the unfair prar^-
tlces complained about, with a provision that shouhl
iliey l)e resumed the facts as stipulated may be used
as evidence in any formal complaint which the com-
uiission might issue. In general, stipulations are ac
cepted in cases involving general misrepresentations
in the case of goods in interstate commerce or false
and misleading advertising.

March 1$, 1934

MURIEL

CIGAR

Full
Size

5^

Long
Filler

Exceptional cigar
quality for a nickel

Other sizes

Lon(tfellows . . , . 3 for 25<?

Perfecto* IW

Aristocrats 2 f or 25<

Mfd. by r. tOIILLASO CO., INC.

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

JESSE A. BLOCK. Wheeling. W. Vm FVp^tlH^S

CHARLES J. EISENLOHR. Fhiladelphi*. Pa \>- p ^!"t

JULIUS LICHTENSTEIN. New York. N. Y ;...: • vY*"/"^?*^

WILLIAM BEST. New York. N. Y Chairman Executire Committee

MAJ. GEORGE W. HILL, New York, N. Y X-"Sl!! 3!nl

GEORGE H. HUMMELL. New York. N. Y v'"'^! rf!«I

H. H. SHELTON, Washington. D. C v- p !! H^nJ

WILLIAM T. REED. Richmond. Va X!*!:p"! 3!«;

HARVEY L. HIRST. Philadelphia. Pa Vice-President

ASA LEMLEIN. New York, N. Y .'"'Ji; ■" nf.!!^^

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Directw

Headquarters, 341 Madison Ave., New York City

ALLIED TOBACCO LEAGUE OF AMERICA

W. D. SPALDING. Cincinnati. Ohio V/. " * * S*^** • j*°!

aiAS. B. WITTROCK. Cincinnati, Ohio Vice-President

GEO. S. ENGEL. Covington. Ky il!*'J*/^

WM. S. GOLDENBURG, Cincinnati, Ohio secretary

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City •i.":\>""E!"-3!«!

MILTON RANCK, Lancaster. Pa ..Firit Vice- Presiden*

D. EMlL KLEIN. New York City Second Vice-President

LEE SAMUELS, New York City Secretary-Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

TACK A. MARTIN. Newark. N. J i.V — Vr ^ * ' " ^*' ■ j"!

ALBERT FREEMAN. New York. N. Y .-First Vice-President

IRVEN M. MOSS. Trenton, N. J Se<»nd Vice-President

ABE BROWN. 180 Grumman Ave., Newark, N. J SecreUry -Treasurer

NEW YORK CIGAR MANUFACTURERS* BOARD OF

TRADE

ASA LEMLEIN V>- •'S^'-J"!

SAMUEL WASSERMAN Vice-President

THE NATIONAL ASSOCIATIONS OF TOBACCO

DISTRIBUTORS

C A. JUST, St. Louis. Mo President

MAX JACOBOWITZ. 84 Montgomery St., Jersey City, N. J Secretary

E. ASBURY DAVIS, Baltimore, Md Vice-President

E W. HARRIS, Indianapolis, ind Vice-President

JONATHAN VIP(JND. Scranton, Pa Vice-President

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer

EstablUheJ 1886

"BEST OF THE BEST"

^^^;±^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco in«lCo«v and smooth In characten
and Impart a most palatable flavor

FUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTUN. AKOMATIZEB. BOX FLAVORS. PASTE SWEETENERS

FRIES & BRO., 92 Reade Street. New York

•tvfX'lV»A'lvfA'lVt/jtvtyji^t>jivf^.[Xt^lxS^^t^lVg4^

mw9mm>s/s>m>9JM>9Ji\>m\>9.

Classified Column

The rate foi this column it three centt (3c.) a word, with
a minimum charge of seventy-five centi (75c.) payable
strictly in advance.

«ir)iMr?»(ifrsotr«rtr?8WiWW^^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan. 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE— Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fk. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, JtV^RKcm

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

Dnplioafp Oertifioflfp.

200

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.

REGISTRATIONS
MELLO-GLO: — 46.296. 1 or all tobacco i>roducts. January 2.^. 10.^4.
Consolidated Litlio. Corp.. Brooklyn. X. Y.

RENWICK PARK:— 46.297. I'or ciH:ars. ciparcttcs and tobacco.
I c'hruary 8. 19.U. F. M. Howell & Ci>.. l<:iniira N. Y.

TABLE MADE:— 46.299. For all tobacco products. .Nfardi (>, 10.^4.
W. J. Xcff & Co.. Red Lion. Pa.

TABLE MAIDS: — 46,300. I- or all tobacco products. March U, 1W4.
W. J. XeiT & Co.. Red Lion. Fa.

GAR-V CLUB HOUSE:— 46,301. For cij-ars. I'ehruary 17. 19.M.
Joe Lcib. L(»s Angeles. Cal.

VETZEL: — 46.302. I'or cij^^ars. cigarettes and tobacco. March 8,
1934. R. F. Vetzel. Melbourne, Fla.

TRANSFERS

EL PARADO:— 36,662 fl'nited Registrati<»n Hureau). For cigars,
cigarettes and tobacco. Registered June .1, 191 1, by Julius Bien Co.,
New York. X. Y. Transferred by Ctmsolidatetl Litho. Corp..
Brooklyn. X. Y.. Miccessors to the regi.strant, to E, Mueller & Son
Co.. .Milwaukee. Wis., October, 1916.

VERMILLION CLUB:— 40,955 (T. M. .\ . 1 ..r all tobacco prod-
ucts. Registered December M), 1918. by X'ictor Levor. .Attica, Ind.
Transferred to I.. I). McKin^ie ^S: Co.. Danville, 111., l-'ebruarv 17th.
19.U.

SAN RITA:— 46,295. I or cigar>. Registered I'ebruary 21. 19.^4. by
Cuesta, Rey iS: Co.. iampa. Ma. (This certificate is i>^ued upon
presentation made to us that the trade name or trade-mark herein
specified, though apparently not heretofore re^istered in any of our
Affiliated I'ure.ui-. has been in use !)y Henry 1".. Ackerburg, Chi-
cago, 111., sitid- 19H.. and transferred to Cuesta, Rev \ Co.. Tampa.
I'la.. February \h, 19.U.)

"What a welcome visitor
The Tobacco World
must be to wholesalers and
retailers!

*'If they are only half as
interested in reading it as
we ourselves are, we're ^lad
our ad is in it regularly" —

says an advertiser.

APRIL 1, 1934

UIBRARV

BECEIVED

APR -3 1934

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la., Pa,
Hanover, Pa.
Cincinnati, Ohio

^ _, ^ «w York, Pa.

AUTOKRAFT BOX CORPORATION Chicago, in.

Lima Ohio Detroit, Mich.

A Nationwide Service Wheeling, W. Va.

=

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA

1^

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate afoma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

/when buying cigars

I Remember that Regardless of Price

I THE BEST CIGARS

I ARE PACKED IM

\ WOODEN BOXES

THE TOBACCO WORLD

Vol 54

APRIL 1. 1934

No. 7

T WAS inevitable tliat, during the long and
seemingly interminable delay between the
drafting of the cigar code and its approval,
there should be criticisms, both inside and out-
side the industry. The attacks from outside have been
reported as emanating from Washington and they are
to the eifect that the blame for the non-oxistence of a
code at this date should be placed on the shouKlors of
the cigar people themselves. The inside carping, much
of which comes into these editorial offices through the
nuiil and in the course of personal visits from men
engaged in the various departments of the industry,
takes the form of objections that the code as submitted
favors the large manufacturers or the machine group,
or whatnot. It is a pleasure to us to offer, in rebuttal
of the many divergent statements, the following words
of the chairman of the Cigar Code Committee, Harvey
L. Hirst, on his return from one of his numerous triph
to Washington last week :

Ct3 Ct3 CjJ

TATEMENTS emanating from Washington
that the long delay in the cigar code is the
fault of the cigar industry, are entirely unfaii*
and can be disproved by the records. The
cigar industry will never have to apologize for its pari,
and its manner of co-operation with the administration,
in this undertaking. The advent of the NHA found
the cigar industry, quite naturally, very much disin-
tegrated and with widely diversified interests and con-
ditions. From the beginning and through all my close
association with this undertaking I have seen mani-
tt'sted a spirit of unselfishness and a willingness to
Lcive and take, of which the cigar business may well be
proud.

C?3 Ct3 Ct3

DO not mean that tliese diverging interests
were easily integrated. The problems were
too numy and too complex for that. But all
issues were met courageously, and step by step
(verv angle was straightened out and attended to.
There is not and could not be entire satisfaction from
t'very individual viewpoint. But to all intents and pur-
l)oses the many opposing objectives were solidified.
Moreover, all of the various groups made concessions
for the benefit of the whole, and the code as it finally
i-merged w^as certainly not dominated by the large
manufacturers or the s^mall manufacturers, by the ma-
chine group or the hand group. Jill of these group:^
made compromises in the interest of harmony and for
the purpose of integration.

HE cigar industry showed this same spirit of
fair dealing and compromise also in its deal-
ings with the Administrators. The setbacks
tliat have been experienced, such as differences
of opinion between the Agricultural Administrators
and the XRA, the jockeying by Washington which
seemingly forced the retailers to accept the mark-up
instead of the vertical code, the reopening of the con-
troversy over wage and time provisions, and other un-
expected checks on the proceedings, are circumstances
over which the cigar industry, as a body, could not
have foreseen or prevented, and is not responsible for.
But the important thing just now is for the merchan-
dising division of the industry to know that all of these
adversities are being faced courageously, that right
now the outlook is reasonably bright for an early and
agreeable termination of the work in hand, and that
uny price cutting outbreak at this time would be about
the worst thing that could happen to the cigar and
tobacco industry in these, the last stages of its long
and hard-fought battle to acquire a trade code and get
going."

Ct3 CX3 Ct3

FTRE'S hoping that the next issue of The
Tobacco World will carry the news of the

ai)proval of the Code. In the meantime, and

even if the delay is prolonged beyond that time,
we earnestly appeal to cigar merchandisers to give
heed to the plea of the Cigar Code Committee, as
voiced by Mr. Hirst, to sit tight and not allow them-
."-elves to become parties to any outbreak of price
cutting at this time. That is an unmitigated evil al-
ways. Right now it would be a particularly destructive
nionkev wrench in the machinerv of recovery for the
industry.

Ct3 Ct3 (t3

T GIVES us especial pleasure to read the Feb-
ruary withdrawal figures printed elsewhere in
this issue. For the second successive month
of the young year there was a decided gain
for all tobacco products, and we are not going to spoil
our pleasure — and yours — by any kind of analysis, of
the cigar figures, for instance, that would minimize the
impressiveness of the general gains. You will notice,
of course, the mercurial jump in the large cigarette
figures, occasioned by the introduction of the eleven-
inch product, to be cut into fours by the smoker. It
is one of the features of the tobacco business that
those in it do not have to wonder or guess how things
are going. In many another industry a manufacturer
could put an innovation on the market, and only he
would know of its effect on the industry generally.
Everyone else could only guess and speculate. Here
we know^ almost innnediately from official figures. This

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankms, President and Treasurer;
Gerald B Hankins, Secretary. Office. 236 Chestnut Street, Philadelphia. Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post OflSce, Philadelphia, Pa., under the Act of March 3, 1879.

is a quicker service lliaii the automobile manufacturers
get from the private companies which compile their
sales reports from the registrations at state capitals,
and a more comprehensive one than newsi)aper pub-
lishers get from Media Records, another i)rivate con-
cern. If there is anv value — and there decidedlv is —

in the General Motors research motto, ''Get the Facts,
or the Facts Will Get You," it would seem that the
men in the tobacco industry liave, in these official
monthly figures, an advantage over tliose engaged in
many other industries, in the imi)ortant matter of
knowing how to i)lan for the futuie.

Meet Miss Sellers, Prince Hamlet Champ

ISS SHLI.KI\S, retail store manager of the I...
Weinberg I'o., store at i)() S. 2nd St., Avas
awarded the $25 prize recently olYered by
Bayuk Cigars, Inc., for the person selling the
largest number of their new Prince Handet cigars
(luring a stated period in Philadelphia. In relating lier
experiences in retailing cigars, Miss Sellers said that
when she first came into the store they wei*e selling a
small quantity of cigars and smoking and chewing-
tobaccos, which she regarded more as a nuisance than
otherwise.

She soon began to see the wisdom of selling tlie
customer larger quantities of all kinds of tobacco
])roducts, thus having more time to devote to the other
departments of the store. By carefully learning the
l^ersonalities of her customers, she soon had them buy-
ing their chewing and smoking tobaccos by the |)ound
instead of by the package or plug, and cigars by tlie
box instead of one or two at a time.

A little while after entering the employ of L. AVein-
berg & Co. Bayuk Cigars held a sales conference to
which retailers were invited. Miss Sellers at first de-

cided she would not attend as she would i)ro])al)ly be
the only female present among a crowd of men, })ut at
the last minute changed her mind and decided to attend
the conference.

After a verv illuminating and instructive talk bv
Mr. Sharrock, local sales manager for Bayuk Cigars,
the retailers were taken on an inspection tour of the
big Bayuk factory, and Miss Sellers, who has **IT, "
and no mistake, was fortunate to draw Mr. Sharrock
himself for her guide on the tour. Mr. Sharrock care-
fully explained to her the many different kinds of fine
tobaccos which are used in all Bayuk products, and
concluded with a splendid talk on the best methods for
displaying cigars and also keeping them in first class
condition.

After her return to the store the next dav it didn't

»

take Miss Sellers very long to re-arrange her cigai*
department cases and toj) of the case display, and she
was also ready for her first customer with an excellent
and intelligent sales talk on the merits of Bavuk
cigars. And, boy, did she sell them. Well- -she won
the prize, didn't she?

Grabosky Brothers in New Plant

R A BOSKY BROTHERS, nationally known
cigar manufacturers, have announced that they
will remove their plant and offices from 21
North Second Street to ll-i;M5 North Second
Street, Philadelphia, on Monday, April 2d. This step
will be taken in an effort to better the \y()rking con-
ditions of employees as well as to gain additional space
necessitated by increasing business. The attractive
new building soon to be occupied consists of five stories
and a basement, all of which will be utilized by the
Grabosky firm. The structure has been completely
renovated and modernized. Fine lighting and many
new^ conveniences are features.

Long identified with the cigar industry, members
of this firm first became widely known as the producers
of one of the nation's fastest selling cigars. (Jrabosky
Brothers' new" product — the Royalist cigar — is already
recognized as an outstanding success and bids fair to
be one of the nation's leading brands.

The marked jmblic prefeience for Royalist and
the subseipient need for greater production in order
to satisfy it, is among the chief reasons why (Jrabosky
Brothers came to deem larger quarters imi)erative.

Benjamin L. (Jrabosky recently identified himself
with Grabosky Brothers, Inc. He was formerly asso-
ciated with the G. II. P. Cigar Company, also of Phila-
delphia. One of the best-known figures in the cigar
industry, he has been actively engaged in this line since
19U0. It is his plan to broaden Royalist's market to
an even greater extent.

Royalist enjoys solid distribution in many parts
of the Union and recently entered the New York area,
where it was accorded immediate acceptance. (Jrabosky
Brothers are firm believers in the power of tiie printed
word. They are ])ioneers in newspaper advertising
having spent millions of dollars in this medium of
publicity. Their advertisements may be seen regularly
today in various metropolitan newspa])ers and other
publications.

$1,586,156 Paid to 31,541 Tobacco Growers

ENTAL and benefit payments distributed under
Agricultural Adjustment Administration pro-
grams up to March 1 totalled $173,570,549 it
is shown bv summaries announced bv the Ad-
ministration today. This distribution was made among
1,774,431 farmers in 46 states. In addition to these
payments, the Administration had expended $8,979,933
on that date for administrative expenses, and $49,-
841,684 for removal of surplus products.

The $173,570,549 rental and benefit payments made
up to March 1 were distributed as follows: $112,349,176
to 1,030,536 cotton growers; $59,635,216 to 712,354
wheat farmeis: and $1,586,156 to 31,541 tobacco

growers.

Distribution of rental and benefits during the
month of February increased by $14,576,037. The num-
ber of farmers to whom jjayments were made during
the month increased bv IH.3,732.

N Ews From Congress

_ -AND

Federal

Departments

VIDENCES of definite economic recovery ai'e
seen by Treasur}^ officials in the heavily in
creased tobacco taxes collected during Feb-
ruary, as comj)ared with the same month last
year. Receijits from the cigarette tax were at peak
levels, with collections for the month reaching $27,699,-
530 against $23,563,756 in February, 1933. Cigar taxes
also increased, totaling $776,217 against $752,763, and
receipts from chewing and smoking tobacco were up
20 per cent., $4,505,410 against $3,920,638.

Taxes collected on snutT during the month totaled
^!^597,717 against $479,706 in 1933; cigarette papeis and
tubes returned $58,964 against $51,564, and miscellan-
eous tobacco collections were $8,802 against $268.

Cj3 Cj3 Cj3

Tk$ Tobacco WorU

■-^gllTII the support of the Treasury Department
^Mj behind it, the move for reduction of tobacco
^^JBl taxes, now under consideration by the House
Ways and Cleans Committee, is said at the
Capital to have better chances of success than at any
time for several years. Hearings on the question of
tobacco taxes, postponed from March 12 because of the
tariff legislation, were begun by the Ways and Means
Committee March 27, before a subconnnittee consist-
ing of Rei)resentatives Vinson of Kentucky, chair-
man; Shallenberger of Nebraska, McCormack of
Massachusetts (Dem.) and Bacharach of New .lersey
and Woodruff of Michigan (Rep.).

The subcommittee will investigate all phases of
the tobacco tax situation, with a view to making a
report on which the full committee can reconunend
such legislation as it may deem necessary.

Approval of the Treasury Department to reduc
tions in taxes on tobacco products was voiced by Secre-
tary Morgenthau March 21 when he appeared before
the Senate finance committee during its final considera-
1 ion of the new tax bill.

The Secretary advocated a reduction from $3 to
$2.70 per l,tXX) inthe tax on cheap cigarettes, expres-
sing the belief that a marked improvement in the trade
in these grades would result, so that probably there
would be no diminution in revenue. The producers r^f
the cheap cigarettes, he said, are finding it difficult to
eontinue in business, as the 15-cent brands are crow«l-
ing the 10-cent product out of the market, and the 10
per cent, reduction in tax proposed would be of con-
siderable help to them.

From a brief statement w^hich he read to the com-
mittee, the Treasury head, w^ho was accompanied by a
number of members of his staff to back him up, told
of the situation.

\pra t, 1934

From our Washingtom Bo9eau 6224taeE Buiiomg

The conmnttee decided to make no change in thm
measure which it was then preparing to report, but in-
dicated that it would probablv hold a hearinir on the
question and if the easing of tlie tax was found advis-
able an amendment to the bill would be offered by
Chairman Harrison when tlu* measure eanie up in
Senate for debate.

CJ3 Cj3 Cj]

E(rISLATION designed to protect the revenues
of states having sales taxes by making possible
the af)plication of such taxes to sales consum-
mated as part of an interstate transaction has
been passed by the Senate and is awaiting the action
of the House of Representatives. The measure, in-
troduced in Februarv bv Senator Harrison of Missis-
sippi, chairman of the Finance Committee, deprive**
merchandise of its interstate character when entering
a state in which a sales tax is levied.

It was declared that shippers of tobacco are using
the ** original package" doctrine as a subterfuge to
avoid state taxation. It w^as stated during hearings
on the bill that in states having cigarette taxes, tobacco
salesmen solicited business from retail merchants by
otTering cases of cigarettes delivered from jobbing
centers outside the state, representing that such pur-
chases may be made without paying the state tax. In
many instances the shipments were made in plain car-
tons and moved by express or parcel post.

The ])rincipal object of the bill is to defeat any
sucli subterfuge and to permit nondiscriminatory state
taxation of interstate shipments.

Cj3 Cj3 Cj3

HARGTNG that "each time the spirit of enter
prise begins to show a little vitality, some new
political obstacle is throwii into the roadway
and enterprise is forced to retreat," members
of the ( Vmsumers' Industries Committee created by Re-
coverv Administrator Johnson following the recent
conference of code authorities last month declared
there is little probability of any improvement in the
credit situation of the Nation so long as the present
''legislative uncertainty" continues.

Holding that a number of measures pendmir
threaten industry with an ''unbearable burden,"
the committee called ui>on Congress to make knowni its
intention of ignoring legislation which will handica])

(Continued on page 15)

I

i

[>MIA

BAYUK BITS

DOLPH SCHAAP, Sumatra tobacco buyer for
Hayuk Ciirars, Inc., left on the 8. S. Manhattan
from New York on the 28tli for Amsterdam,
wliere he will attend the Sumatra sales. He
is aceomi)anied by Mrs. Schaa]). . . . Charles L.
Stetlen, Ohio territorial manager, eaHed at head-
quarters and arranired for additional shipments of
*' Phillies" to meet the increasing demand for the
brand throughout his territory. . . . The Star
Grocer Co., Parkersburg, W. Va., has acquired the
sale of *' Phillies" for their local territory. . . .
Eddie Bayuk is en route to Los Angeles via steamer
to work under the supervision of Territorial Manager
John J. Snyder as a Bayuk salesman. . . . George L.
Branzell, territorial manager for Virginia, and his as-
sistant, G. L..McGreevy, visited the factory on Satur-
dav, the 24tli.

WILL ATTEND CHICAGO ROUNDUP

F. P. Will, executive vice-president of the G. H. P.
Cigar Co., and H. H. Kynett, of Aitkin-Kynett Co.,
advertising agency, left this week for Chicago where
they will visit the Chicago distributing branch and
meet Dave Jenks, who has been covering the north-
western territorv in the interest of VA i^roducto wnth
good results. While in Chicago plans will be discussed
for the spring campaign on El Product o and La Azora.
Mr. Will expressed himself as much gratified with the
inmiediate and enthusiastic response of retailers and
consumers to the newspaper advertising campaign on
La Azoia, which was released about two weeks ago.

Yahn & McDonnell are distributing the new
Vestalite cigar lighter, retailing at $1, with splendid
results. This new lighter works on the automatic prin-
ciple, and, like all good lighters, it always works.

Dave Abrams, formerly local sales manager for
George Ziflferblatt & Co., is now connected with I. J.
Abramson, tobacco distributor, of South Fifth Street,
and is promoting the sale of Natural Bloom cigars in
this city through that distributor.

Trade Notes

Joe Banker and Barton Lendein, of M. Sacks ^
Co., New York City manufacturers, were in town last

week visiting the trade.

Ben Lnmley% local Beau Brununel, and genial rep-
resentative of the Garcia y Vega factory in Tampa, is
spending some time among local retailers and increas-
ing the distribution and sah^ of his l)rand here.

B. C. .Tessa, eastern representative for Heine's
Tobacco Company, was in town last week working on
Heine's Blend, distributed here through Yahn & Mc-
Donnell, with good results.

The Widener Building stand of Yahn & McDonnell
is displaying the new Douglas Air Cooled pipe in such
a way that it is attracting attention and resulting in
a good volume of sales.

(/harlie Bobrow returned from a trip through New
York territory last week, and after spending the week-
end at home, left on Monday for northern New Jersey
territory.

Harry Tint, 1420 Chestnut Street, is displaying
the new Golden Wheel cigar lighter, a product of Her-
man Ledderer & Co. This lighter is very attractive
and retails for $L

Steve Hirsh, of the D. Kmil Klein Co., was a
visitor at Yahn & McDonnell headquarters last week,
and expressed himself as highly pleased with the dis-
tribution and sale of Haddon Hall cigars here.

Dorsey M. Worley, who has represented Otto
Eisenlohr & Bro. in eastern Pennsylvania for a period
of thirty years, has announced that he has severed his
connections with that concern and will open his owm
jobbing house in (^amp Hill, Pa., featuring pipes and
the nationally known brands of cigars.

Tk€ Tobacco WorU

Musings of a Cigar Store Indian

By Chief "Young-Man-Smoke-Cigars"

KHK are some more extracts from John L.
Morrison's article, "The Passing of the
Wooden Indian," in the October, 1928 issue of
Srribncr's : "In the fifties there were three out-
standing men in the tobacco business in New York:
Peter ijorillard, D. H. McAlpin, and Edward Hen.
Lorilhnd, a Fiench Huguenot, established the first
1ol)acco-factory in this country, a small snuff-mill on
ihe Bronx River, 'a few miles above New York.' He
iiad a store at 42 Chatham Street and later at 60
Wooster. Featuring snutT and then, one hundred and
ten years later, *plug' tobacco, this concern had no need
nor ])lace for wooden Indians.

CS3 Cj3 CJ3

OKILLARI) and IMcAlpin are famous names;
Kdward Hen is unknown, but for three decades
this vibrant personality was a familiar and a
striking figure. Born in Alsace; emigrant at
twenty, in 1837; selling cond)s, toys, and toilet articles
in New York streets during the day ; making the deliver-
ies at h(»mes in the evening — in 1825 he was going
strong in the tobacco business at 2 Liberty Street, later
and for seventeen years at 23 Liberty. In 1856 he ad-
vertised 'Indians,' the first advertising of its kind in
the scoi)e of my research. The year 1871 found him at
4.) Lil)erty, a shabby five-storied brick building opposite
tlie post-office. There Hen assembled the largest con-
gress of wooden braves the world has ever seen or ever
will see. An octogenarian cigar-nuiker tells me it was
an awesome sight, these hundreds of wooden red men
with their fresh war ])aint.

Ct3 Ct3 Cj3

KX was uni<iue. One faithful over-cloak trailed
at his heels for his last twenty-six years. He
was a bachelor and took his three nephews as
aj)prentices. Hen permitted each nephew to
run the ])usiness a year, with the net result thai at
I ncle's death everv nephew was cut otT without a cent.
As I'nch^ left more than $1,500,000 in 1887, when a
dollar was a dollar, that was some cut off. It was no
I ('flection on the nephews; it was just P]<1. Hen's way.

CS3 Cj3 Cj3

IS subsistence budget was twenty-five cents a
day. He once said his breakfast cost was eight
cents, except that when he used butter on the
single slice of bread or roll the cost of high
living rose to ten cents. Hen's only luxury was snulT.
lietween his intense frugality and his remarkable busi-
ness acumen he became a factor in the financial w^orld
and Ins was a familiar figure in Wall Street, usually.at
Yermilye & (V)mpany*s or J. P. Goodheart & Com-
panv*8, his favorite brokerage houses. Just to men-
tion* that he once lent Joy Cooke & Company $5(K),000

AprH t 1934

cash, and only two weeks before their historic failure
got his money back, is enough to say for both the
financial standing and the alert mind of Edward Hen.

^bA^ ^-B^ ^bA^

Cj3 Ct3 Ct3

Va slept in his store and hoped he would die
there — and he was found dead back of a
counter. He had a superstitious aversion to 7
and died in 1887— 'Old Man Hen Is Dead^ was
the lie raid's headline. Possibly his most picturesque
incident was his once tardv arrival for the Staten
Island ferry-boat. The crew was obdurate to his signs
and shouts as he ran across Battery Park. As the
guard-chain met him amidships and threw him back on
the stone platform, he cursed the boat and crew. And
the boat's boilers promptly blew up — this by oral tra-
dition.

^^^^^^A a^^^^^B ^^^^^^B

CJ3 cp crj

FOURTH name in the hevdav of the wooden
Indian was William Denmth & Company, 801
Broadway, who dealt chiefly in pipes and in
tobacconists- supplies. So completely has the
wooden Indian vanished that no one in that concern
(just prior to the recent change of o^\^lership) could
recall or tell from records when Indians, if ever, formed
a staple line of their business ; but Leopold Schwager,
of Brooklyn, still alert and merchandising the weed in
the Borough Hall district, remembers well when he
sold Demuth's Indians as an important side line.
Samples w^ere impossible, and prospects were showTi an
attiactive illustrated catalogue with^ descriptions,
l)rices, and the latest discounts in XXX chiefs and
t'xtra special Pocahontases (or whatever the plural
may be).

Cj3 Ct] Ct3

R. SCHWAGER is my sole find as a distributer

of wooden Indians to eager tobacconists and

admiring public. No evidence of a factory has

come to light nor information regarding the

methods dealers used to acquire and replenish stocks.

The metal Indians which came on later and disputed

witli the wooden tribe for possession of the sidewalks

of New York and elsewhere were certainly cast from

standardized moulds, but as to where and when and

liow and by whom history renmins dark and silent.

Cj3 Ct3 Cj3

OODEN Indian carvers were not addicted to

hall-marking their product by symbol,

initials, or name; but in all probability the

first wooden-Indian making in this country was

done bv ship-carvers, then a distinct calling. There

were not manv of these carvers, only five in New Y'ork

in 1857.

1

Ill AT eigar-staiid Indians wero allied with the
sliip-figurohoad industry is strongly ovidonced.
An Indian in the Historical Society Museum,
Reading-, J*a., was a tiuurehead on a slii]) when
])urchased at Philadelphia hy diaries Hernheiser and
made a landlubber brave. The woikmanship and some
peculiarities of this figure suggest the handicraft of
William Kush, who was the foremost sculptor of Phila-
delphia, if not of the entire country in Revolutionary

davs and later. His figureheads were world-famous.
The tradition that Kush, Samuel Mac Intire, and other
fiuurehead makers ])ut chisels to ])ine and carved
wooden Indians is wholly believable. Further research,
I believe, will show them caught with the wooden goods.
A wooden Indian in those days was a serious form of
commercial art, not *])ro])erty' corpses for collegiate
travesties nor sul)ject of raucous laughter by those
denied education in its higher forms."

Cigarette Outlook for 1933

Some Rough Estimates of Probable Results

OW that all of the leading cigarette manu-
facturers have rei)orted results of operations
for last year, it is possible to make some rough
estimates of probal)le results for this year. A
close appraisal of ea minus ])rosi)ects for 1!K*U is ren-
dered esi)ecially ditlicult by such new factors as eiTect
of the code on labor costs, et!*ect on raw material costs
of the agreement between tobacco manufacturers and
the Secretary of Agriculture concerning i)rices, and by
imposition of ])rocessing taxes at the rate of 4c i)er
pound of tobacco used. The tendency in each instance
will be toward increased costs of ])roduction. Another
factor which is always of considerable uncertainty is
the varying ex])enditures for advertising — a big item
in the cigarette industry. We expect a sizable increase
in such expenditures in 1934.

On the favorable side of the picture is the increase
in prices of cigarettes from ^o.fjO i)er thousand to $().!()
early in January of this year. From these i)rices must
be subtracted- trade discounts and Federal excise taxes.
We have ])repared a tabulation which shows the ap-
proximate value to manufacturers of cigarettes ])ro-
duced from 1927 to date together with our jireliminary
estimate for the current year.

E.std. Avg. Price EsM, Value
ProfJuctiou per 1000 after to Mfrs.
(Bdlunis) Taj d-I)isrts.

1927
1928
1929
1930
1931
1932
1933
1934^

97
10(5
119
120
113
lt)4
112
120

^2AU
2.39
2.37
2.64
2.83
3.04
1.90
2.3()

$2^7

253

282

316

321

3ir)

212
o^•>

•Advance estimates and assuming a continuation
of present prices.

The last column in the tabulation a))ove represents
our estimate of the value of cigarettes produced, after
subtraction of Federal excise taxes and trade discounts.
From these figures must be subtracted: (1) the cost of
raw tobacco; (2) production and distribution costs; (3)
advertising expemlitures ; (4) interest on funded in-
debtedness, if any; (.')) Fcdcial income taxes. The
balance remaining is availalde to stockholders.

We have arbitrarily assumed a ])robable increase
in cigarette production for 1934 ecpiivalent to that
shown in 1933 over the previous year. In this connec-
tion it is interesting to note that iiroduction in January
of this year was higher than for any cch* responding

8 •

month on record and exceeded the production for
January 1933 l>y 33 per cent. With cigarette prices at
their present level and assuming a ])roduction of 120
billion cigarettes for this year, manufacturers' sales
will increase by about s|;()0,o6o,000, after trade discounts
and taxes. Roughly 90 per cent, of this will go to the
four leading cigarette manufacturers.

The importaiico of such an increase in income from
cigarettes is well illustrated by the fact that aggregate
net profits reported by the four leading manufacturers
for 1933 were a])proxinuitely $58,000,000. Of this
amount $r),000,000, reported by Reynolds Tobacco Com-
jiany, rei)resented ])rofits from the sale of treasury
stock and $4,000,000 si)ent for advertising was i)roperly
chargeable to the i)revious year. Making allowance for
these items, total net profits of the four largest manu-
facturers were approximately $49,000,000. The ex-
pected increase in sales income from cigarettes this
year is therefore greater than the total net ])rofits re-
]K)rted last year. Increased numufacturing and opera-
ting costs will of course reduce substantially the
amount carried through to net profits.

We estinuite that the cost of tobacco for the manu-
* facture of 120 billion cigarettes this year as compared
with 112 billion ])roduced last year, including process-
ing taxes, will be increased by roughly $20,000,0(K). It
ai)pears that wage rates in the cigar and cigarette in-
dustry were increased close to 8 |)er cent, under the
code. But, owing to the very definite tendency to in-
creased efficiency in recent years, we anticii)ate no
greater increase in total wage jiayments for 1934 than
in production. In fact, wage payments in the five
months ending with January, 1934 showed a gain of
only .') ]>er cent, over the jirevious year, whereas cigar-
ette i>roduction was uj) 14 per cent, and cigar ])roduc-
tion slightly ahead. Any further saving on wages
through increased operating efficiency will be almost
if not entirely eliminated. Any definite estimate of the
probable increase in advertising expenditures for the
year is frankly a guess, but we would not be surprised
if such expenditures exceeded those of 1933 by $10,(WX),-
0(X).

We conclude that the ])robable increase in net
l)rofits to the tobacco nuuiufacturers from 1934 cigar-
ette sales, unless further price advances are made, will
api)roximate $25,(HM),(K)0. This is etpjivalent to alwut
50 |)er cent, of net profits reported by tlie four leading
manufacturers for 1933.

Estimates, substantiated by reported earnings, in-
<licate that Liggett & Myers materially improved its
l)osition in the cigarette trade during 1933. Without at-
tempting to forecast changes in the relative trade posi-

Tlu Tobacco WorU

HEAR THE CAMEL
CARAVAN WITH

Casa Loma Band

Delights Fans

Have you heard the hit show of the air— The Camel
Caravan? What a show! What a cast!

COLONIL STOOPNAOll and lUDO- who have pan-
icked radio fan« from coast to coast bring still greater
'Hhings and stulTto listeners on The Camel Caravan.

CONNII lOSWIU'S vibrant. ..vivid. ..appealing con-
tralto voice will thrill you...with the beautiful songs
of the past..Jind the pleasing, lilting melodies of the
current **hit*' twies.

CASA LOMA 0«CMIST«A - recently voted by fans
throughout the country as one of America's most
popular bands, continues to charm listeners with its
smooth, unusual rhythm and personality music.

So listen for the strains of the Casa Loma theme
■ong, **Smoke Rings," light up a Camel, and hop
aboard The Camel Caravan for 30 minutes of un-
alloyed enjoyment !

...^.. ■•.■a ^^*rj T-«d.y -»d Tl.ur.d., .• lO P.M.. E.S.T.-9 P M.. C.S.T.-
fUNE INI • 9M^ M.S.T.-7 P.II.. PJ.T. .^.r WABCUC.I.»bi. IN^wrk.

AlOVI YOU SEf

an exclusive portrait of
Colonel Lemuel Q.
Stoopnagle and Budd,
relayed to this publica-
tion by thought wave!

GLAMOROUS CONNIE

At the left is little Connie
Boswell...whose lovely
deep contralto voice has
made millions of radio
friends for her!

CopyrlKht. 1934.
B. J. Btfyiiukls Tobacco Company

AprU I, igs4

tions of the different companies for 1934, we have dis-
tributed the probable increase of $25,000,000 in net
income between the four leading manufacturers on the
basis of their estimated 1933 production. The results
on anticipated per share profits are shown in the follow-
ing tabulation which also includes per share profits for
1932 and 1933.

Est.

1932

1933

1934

American

$8.4fi

$3.00

$5.00

Lorillard

2.02

0.89

1.50

l.iggett & flyers

Q.So

4.84

7.00

Kevnolds*

3.77

1.22

2.00

* The 1932 figure includes 40c ])er share for ad-
vertising appropriations not actually used while the
1933 figure has been adjusted downward by a like
amount plus 50c for non-operating income. Earnings
reported bv the companv were $3.37 in 1932 and $2.12
in 1933.

It is entirely conceivable that further price ad-
vances will be announced during the year. Any such
action would cause sharp upward revisions in our earn-
ings estimates, since increased costs have already been
taken into account in arriving at the 1934 estimates.

In regard to the possibility of further i)rice ad-
vances, it is worth mentioning that Reynolds, the only
one of the big four not exjiected to cover its dividend
reipiirements in 1934, has in past years been the leader
in jjrice revisions. With 1934 earnings expected to fall
somewhat short of dividend requirements and costs
rising, it may be that Reynolds will again see fit lo lead
the way in initiating further cigarette price advances.

From a financial standpoint all the leading cigar-
ette manufacturers are in strong position. On De-

cember 31, 1933, the relation of current assets to cur-
rent liabilities for the different companies was as
follows : Liggett & Myers 33 to 1 ; Reynolds Tobacco
2H to 1 ; Lorillard 24 to 1 ; and American 24 to 1. In
each instance cash and securities together far exceeded
total current debts. Cash and marketable securities
reported by Liggett & flyers at the year-end totaled
about 14 times total current debts and was sufficient for
more than 7 vears' interest and dividend pavments at
])revailing rates. Reynolds had cash equivalent to
about 8 times total current debts and sufficient for one
and two-thirds years' dividend requirements. Loril-
lard's cash was also about 8 times total current debts
and sufficient for almost 5 years' interest and dividend
reijuiremonts. American Tobacco had cash and mar-
ketable securities equivalent to six times total current
de])ts which was in excess of one year's dividend re-
quirements.

It is obvious that each of these companies is in
sufficiently strong financial position to pay out a large
portion of earnings in dividends. Each, in fact, ])aid
more than was earned in 1933. With improvement in
])rospect for the current year, we anticipate a continu-
ation of payments at current rates.

With cigarette production expanding, prices hav-
ing been recently increased, and with all the leading
manufacturing comi)anies in extraordinarily strong
financial jwsitions, we regard their stocks, now selling
at prices offering high yields, as among the more at-
tractive investment issues. They should be retained.

The foregoing analysis of the outlook for cigar-
ettes is reprinted, hif permission, from fhr Brook mire
Analyst, issued by Bronkmire, Tne., a New York firm of
investment eonnselors and administrative economists.

How Tobacco Reduction Plan Is Working

275,000 Growers Expected to Take Part in 1934 Program

OBACCO growers had been over-producing for
a nnm])er of vears with the result that stocks
])iled up in warehouses while returns to
farmers sank lower and lower, states a report
on agricultural adjustment by Secretary of Agriculture
Henry A. Wallace, made public on March 26. The re-
port points out that receipts from the sale of all types
of tobacco had declined from approximatelv $286,()(KJ,-
000 in 1929 to $107,000,0(K) in 1932. During the period
in which returns to growers had declined so drastically,
the manufacturers of tobacco products were able to in-
crease their profits. Total profits of 52 leading tobacco
manufacturers, according to the report, were $14(),(K)0,-
000 in 1932 compared with $134,000,000 in 1929 and
$76,000,000 in 1932.

** Obviously the tobacco grower was not receiving
an equitable share of the tobacco consumers' dollar,"
it is pointed out. **When the situation was examined
in detail, it was found that large stocks of practically
all types of tobacco had accumulated for one reason or
another during the last few years and the need for a
crop reduction program was evident."

The first tobacco adjustment program to be in-
augurated was designed to bring about a reduction in
the 1933 crop of cigar tobacco. This jirogram will be
continued in 1934. Adjustment programs for the other
types of tobacco were inaugurated to bring about a
reduction in 1934 production.

10

Approximately 275,000 tobacco growers are
expected to take part in programs to adjust 1934
tobacco production. Rental and benefit payments for
reducing the 1933 and 1934 crops will total around $40,-
740,000.

In order to increase growers' returns for their
1933 crops, marketing agreements between the Secre-
tarv of Agriculture and the domestic buvers of tobacco
other than cigar types were negotiated and i)ut into
effect. The marketing agreements for the 1933 croj)
were to supplement the 1934 tobacco reduction pro-
grams. -Marketing agreements were negotiated for
ilue-cured, Burley, fire-cured, and dark air-cured to-
baccos.

As a result of the marketing agreement and ad-
justment program for flue-cured tobacco, the 1933 crop
sold on the market for prices which brought growers a
much higher return than did the 1932 prices. The
estimated total value of the 1933 Hue-cured crop, ac-
cording to the report, is $115,0tM),000 compared with
$44,0(X),000 for the 1932 crop and $56,000,(XK) for the
1931 crop.

Total income from Burley tobacco during the cur-
rent marketing season will be fully $55,0()0,0(K). The
income received from each of the past two Burley crops
was $39,000,000. The report shows that comparable re-
sults have been obtained for growers of other types of
tobacco.

Tht Tobacco World

AprU I, 1934

All Tobacco Products Increase in February

HE following comparative data of tax-paid
products, indicated by the monthly sales of
stamps, aie issued by the Bureau. (Fij»:ures
for February, 1934, are subject to revision

until ])ublished in the annual report) :

Products
Cigars (larg-e) :

Class A Xo.

Class B Xo.

Class C Xo.

Class D Xo.

Class Ya Xo.

Total

-Fehruary-

1934

261,955,230

1,828,450

33,175,868

2,035,355

219,177

1933

246,990,730

2,179,483

34,504,660

3,418,052

337,180

299,214,080 287,430,105

Cio^ars (small) ....Xo.
Cig'arettes (large) .Xo.
Cigarettes (small) .Xo.
Snuff ,manuf act ured . lbs.
Tobacco, m a n u -
factured lbs.

21,419,160 17,980,107

27,254,800 203,601

9,167,641,657 7,853,997,217

3,320,649 2,665,037

25,030,055 21,780,898

Tax-paid products from Puerto Rico (not included
in above statement) were as follows:

— February —

Produrfs
Cigars (large) :

Class A Xo.

Class B Xo.

(^lass C Xo.

1934

2,658,200

1,900

84,900

1933

2,217,185
14,750
36,830

X0T9.1 • ••«•««••

Cigars (small) . . . .Xo.
Cigarettes (large) ..Xo.
Cigarettes (small) . .Xo.

2,745,000 2,268,765

250,000

30,000

2(K),000

254,000

30,000

235,000

Tax-paid products from the Philippines (not in-
cluded in above statement) were as follows:

— February — -

Products
Cigars (large) :

Class A Xo.

Class B Xo.

Class C Xo.

Class D Xo.

Class E Xo.

1934

20,229,085

2,180

16,380

100

1933

12,673,220
25,840
19,726

10

Total

20,247,750 12,718,796

Cigarettes (lari^-e) ..Xo. 200 625

Cigarettes (small) . .Xo. 123,160 92,940

T <» b a c c o , m a n u -

factured lbs. 24

Internal Revenue Collections for February
Sources of rereuue 1934 1933

Cigar- $776,21 7.37 5^752,763.76

(^iurarcttes

8nutT

Tobacco, chewing a n d

smoking 4,505,409.96

Ciiraretto ]> a p e r s and

tubes 58,964.82

Miscellaneous, r e 1 ating

to tobacco 8,802.49

. 27,699,530.45 23,563,755.90
597,716.88 479.706.74

3,920,637.83

51,564.52

268.53

Total Withdrawals for Previous Februaries

1920 593,832,200

1921 496,724,482

1922 447,225,986

1923 507,266,094

1924 498,796,313

1925 451,562,278

1926 451,204,147

1927 441,695,730

1928 453,605,097

1929 437,476,207

1930 426,521,773

1931 362,838,747

1932 347,728,648

Processing Tax Returns

Collections from ])rocessing and related taxes pro-
claimed by the Secretary of Agriculture under autlior-
ity of the Agricultural Adjustment Act ( l^ublic — Xo. 10
— 73d Conii:ress), approved ^lav 12, 1933.

Total
from July 1,
Month of 1933 (Fiscal
Commodity February, 1934 year 1934)

Tobacco, (tax effective Oc-
tober 1,1933)

Processing tax $2,169,984.47 $7,598,898.19

I m port compensating

taxes '. 14,464.49

Floor tax, other t h a n

retail dealers 12,583.77

Floor lax, retail dealers 3,743.56

92,174.85

1,799,161.80
237,814.03

Total, tobacco $2,200,776.29 $9,728,048.87

AXTON-FISHER TOBACCO CO.

Axton-Fisher Tobacco Co. reports for 1933, as
certified by independent auditors, net profit of $1,689,-
663 after charges and Federal taxes, equal after divi-
dends on the 6 per cent. j)referred stock and under the
participating provisions of the shares to $17.02 a share
on 45,485 shares of class A connnon stock and $7.21 a
share on 112,012 shares of class B common stock out-
standing at the end of the vear. This compares with
net i)rofit in 1932 of $1,416,952 equal to $14.63 a share on
45,500 shares of class A common and $6.25 a share on
111,900 shares of class B common. If a|)])lied directly
to tiie class A stock after deducting j)referred dividends
the 1933 net ])rofit would show $34.80 a share on the
class A, against $29.86 a share in the jjreceding year.

PORTO RICAN AMERICAN TOBACCO CO.

Porto Rican American Tobacco Co. t'or 1933 re-
])orts net loss after taxes, depreciation and interest,
$161,045, including $240,000 dividends received from
Congress Cii^ar Companv, Inc. This compares with net
loss of $102,787 in 1932, including $240,0(H) dividends
received from Congress Cigar and $31,860 received
from Waitt k Bond, Inc.

TOBACCO PRODUCTS EXPORT CO.

Tobacco Products Kxport Co. for 1933 shows net
profit of $65,063 after taxes and charges, equal to 14
cents a share on 458,100 shares of capital stock, ex-
clusive of 14,400 shares held in th<' treasury. This
comjmres with $46,407, or 10 cents a share, on 459,300
shares in 1932.

n# Tf^focco WoHi

irB «•■«

the

form

© ,834 ■■ C. 1^

BAYUK BULLETIN

Wl DO OUR MM

VOLUME II.

APRIL 1, 1934

NUMBER 5

PHULOFAX

mie Retailer's Friend)

SAYS

\ SIGN UP
a\ OR SHUT UP!

Dear Folks:

If, as a member of the
Cigar Industry, I believe
, , that the Cigar Industry

"is eoin? to the dogs," don't I virtu-

uiJdoV'- And doesn't It prove that
fani thinking more about Komg to
the dogs than I am thmkmg about the
Cigar l>''lustry? Well, if want to
Kotho dogs' O. K., but If I don't
% not start doing somethmg about
the CiKur Industry?

AND inasmuch as I don't want to
eo to the dogs and even if I am only
5Se single little individual, by gad,
m going to do my damdest to see
hat th( Cigar Industry doesn't go
here either and, by gad, once again,
am Roing to do my level best to help
tLr the Cigar Industry to bnghter
and better channels. If that s bgo-
tism, charge it to Egotism!
There's l)een the trouble in the past
as individuals in the Cigar In-
dustry, we figured ourselves helpless
. . . what can just one person do?
And so nothing was done. When four
or five of these cigar industry individ-
uals got together, what did they do?
Chatter — chatter — chatter! We
ought to do something about the cigar
industry . . . Yes, gentlemen. WE
oueht to do something about it. Ana
then what? NOTHING!

Since old Man Adam first rolled a
dear out of a fresh, fragrant fig leaf,
millions of men have thought about
the very principles back of the L. a. a.
and eighteen billion words have been
spoken about the very principles of
the C. B. A. and not one particle
of action to get going on the very
principles of the C. B. A. has been
exercised. ..^

The Cigar Industry as a composite
association of all people in the Cigar
Industry has done nothing, simply
because each member of the Cigar In-
dustry has done nothing — each niem-
ber in the Cigar Industry has been
waiting and waiting and waiting for
the "Industry to do something, and
the "Industry" could do nought be-
cause the individual as an integral
part of the Industry did double
nought ! , .,,

Now, the C. B. A. will get the "In-
dustry' to do something" if each and
every member of the Industry joins
and supports the principles of the

C- fi- A-

This column is uncen sored by any-
one—therefore I want to say that any
member of the Cigar Industry who
does not join and support the C. B. A.
is not a worthy member of the In-
dustry.

I am for the Cigar Industry; I am
for tht C. B. A. and even if I didn t
have a million other reasons, I'm for
the C. B. A. because I am for myself
as a member of the Cigar Industry.

No one in the Cigar Industry can
afford NOT to join the C. B. A.

Sincerely,

C B A FORMED TO

BOOST CIGARS

Association to Popularize Cigar Smoking
Opens Membership Drive

"We must all hang together, or we
shall all be hanged separately," said
wise old Ben Franklin seeking to stif-
fen the courage of his more timid
compatriots at the time of the Ameri-
can Revolution.

Somewhat the same crying need of
real cooperation exists throughout the
Cigar Industry today. It's not that
certain cigar manufacturers are not
making money. It's not that there is
any real danger that the cigar busi-
ness will dry up and blow away. ^ But
1 this fact remains — and it can t be
' laughed off — cigar consumption has
I not increased proportionately with
I population in this country.

The Cigar Industry is not forging
ahead as it should by any means
That is a plain fact, which it would
be foolish to deny. The only questions

Principles of C B A

The principles of CBA may be
briefly summed up as follows:

"We propose to persuade, educate
and in a measure, obligate everyone
who sells cigars to smoke cigars —
and not only to smoke cigars them-
selves, but to make new cigar smok-
ers whenever and wherever they
can."

Simple? Nothing could be simpler.
Effective? Yes, if everybody who
benefits pecuniarily from cigar smok-
ing will put his shoulder to the wheel
by joining CBA and carrying out its
principles.

You remember the old chestnut
about the restaurant proprietor, who
always went across the street for
lunch? There's too much of that same

MEMBERSHIP CARD

Cigar Boosters' Associadon
MEMBER : • • • •

Please type or print name on this line
I pledge myself to adhere as strictly as is humanly possible to
the stipulations on the other side of this card and herewith enroll
myself as a member of the Cigar Boosters' Association.

Name F>"" ISame.

Mailing Address

[All membership registratiom to be filled in and signed in duplicate.

I All ™^';°;;;'"» ;/ 5, ., ^ .^er to: Cigar Boosters' Association, care
^Z^'tZJcoUkV^US Jloitltret New Yort, N. Y. No dues or financial
IbligaUon o? any kind; but if you can spare a quarter to cover badge and
postage, send it along with application. 1

thus serving as a living example in
this respect to my fellowmen.

2. INFLUENCE— I will expect ob-
servance of the above also from
those who do business with me or
seek my patronage, and I will let
them know that I expect it.

3. PROMOTION— I will make new
cigar smokers inside and outside of
the cigar business, wherever and
whenever the opportunity offers —
and I will make such opportunities.

4. PRIDE— I believe that a good
cigar adds to the sum total of
human happiness and I am proud
of the product I sell; I make my
living from the cigar business and
I vdll be loyal to it.

5. UPLIFT — I am forever done with
crepe-hanging and complaining,
and henceforth and hereafter will
spread only the good and the glad
tidings of cigar smoking and the
cigar industry.

6. INSIGNIA— As far as may be
practicable I will wear constantly
our badge of membership on my
coat lapel.

How About You Joining CBA?

The membership dues are nothing a
year. But each member is asked to
contribute twenty-five cents (if he can
spare it) to cover the cost of the badge
and postage. But if he can't spare the
quarter, he's welcome anyway. It's
men, not money, that CBA wants.

The Bayuk Bulletin endorses CBA
wholeheartedly, and pledges its sup-
port lock, stock and barrel. Were we
to do any less, we would be defaulting
on our own preachment and practice
of years.

We earnestly urge every retailer,
every jobber, every cigar salesman,
every cigar factory employee— every-
one even remotely connected with the
Cigar Industry to join. It's their fight
and ours, their bread and butter and
ours. If we don't go into this thing
body, soul and breeches, we deserve
to see the cigar follow the horse and
buggy into that dusty limbo where
are stored the quaint old customs of
our fathers.

Anyone who thinks that thousands
of intelligent, alert men working to-
gether with the single purpose of
bringing the cigar back into its own,
can't do it — Well, he's the same citi-
zen who looked at the horseless car-
riage and said: "They'll never make
the dang thing go."

at issue are: Shall the Cigar Industry
do an>'thing about it or not? And if
anything— what?

'4moriat*d wUk BAYUK OGARS, INC., PkiU.

CBA Answers that Question

This Association has decided that '
the Cigar Industry shall do something
about it.

In discussing ways and means oi
putting new life into the Industry,
many plans were suggested, among
them the raising of a half million
dollar fund for advertising and propa-
ganda to popularize the smoking of
cigars. ^

But finally all the various schemes
were discarded in favor of an aston-
i ishingly simple and inexpensive plan
' that cannot fail to be inimensely suc-
cessful, provided— provided it receives
the wholehearted support of a large
majority of those who gain their live-
lihood, wholly or in part, from the
manufacture or sale of cigars.

The practical application of the
plan has been entrusted to a newly
formed organization called the Cigar
Boosters' Association, or* U B a.

attitude in the cigar business. It is
not inconceivable that there are
enough non-cigar smokers in the cigar
and affiliated industries actually to
start a new vogue for cigars bjf the
simple expedient of smoking cigars
themselves.

Spreading the Gospel

As for doing effective propaganda
for cigars among those not connected
with the industry— the field is broad.
The CBA member is limited only by
his own intelligence and common re-
jrard for decency and politeness.

Think of how many possible ways
there are to call attention to the most
enjoyable of all forms of tobacco, and
one of the greatest and least costly of
pleasures known to man I

The CBA Credo

Is there anything in the following
credo to which any man in the cigar
business cannot, or should not, sub-

1 EXAMPLE— I myself will smoke
cigars; freely, openly, joyously;

SMOKING CORDIALLY INVITED

L

Can you use a sign like tbis In your place of

WritTto^ Baj/ufc Bulletin (Ninth Street and
Columbia Avenue, Philadelphia, Pa.).

BAYUK BRANDS BUILD BUSINESS

Bayuk Philadelphia Perfecto

(BAYUK "PHILUIS^

Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

Bayuk Phillies Victory Dinner

ISTKIBUTOKS in tlir Metropolitan area
staged a Bayuk Pliilliis \'i( h>iy Dinner at the
^[a])lewoo(l Country Club, Mai)lewood, N. J.,
on Friday night, March K!. Arriving at live
P. M. festivities ])egan at once. Lots to eat and drink
before sitting down to dinner, which was a masterpiece
concocted by Mine Host Lloyd, of the Maplewood C. C
After dinner Harry Rothschild, president, very sin-
cerely yet wittily welcomed the opportunity of joining
the distributors and their salesmen in eelebrating
Phillies success in 1933 and promised that Bayuk would
come thru in even grander stvle in 1934. Other
sjieakers were A. Jos. Xewnuin, vice-president and
general sales manager, Xeal D. Ivey, *'Babe" Bergen,
Al Lynch, the two Browns — Fred E., manager of the
Xew York Branch and Abe, nuinager of the Newark
Branch — and Joseph Kolodny.

The glee club of the Xew York Branch sang several
very appropriate ])arodies and then on with the show
which was a wow. At one A. ^1. all lights out "svith
everybody tired but happy. The dining room was
appropriately decorated with Bayuk Phillies Victory
Dinner as the center theme surrounded by the names of
the celebrities present. Green in honor of St. Patrick's
Dav was the i)redominating color.

Those present from the Jersey City Tobacco Co.
were Clever B. Cohen, ^lorris AVecker, Harrv Medni-
kofif, Wm. Doror, AVm. R. AVoodrutf, Samuel Morris,
Larry Strauss, A. B. Peacock, Max D. Cohen, Saul
Kolodny, Steve Airel and J. Joseph Leddy, and Joseph
Kolodny, managing director.

Those present from the X'^ewark Branch were Wm.
T. Glassford, Harry Bee, I. AVeinberg, David Sholk,
Sol P]venchick, Chas. H. King, Al C. Lynch, I. Hess,
credit manager, Allen Strombeck and Abe Brown,
branch manager.

From the Progressive Cigar Co. of Trenton there
were present Jos. S. Murphy and Ad Hanauer.

From ;M. Bergen & Sons of Elizabeth there were
present Harry E. Keed, Charles J. Bergen, Wm. A.
Bergen, J. Donahoe, and A. A. Bergen.

From Wells Cigars, Inc. of Hackensack there were
present Chester A. Wells, Rus. Helck, and Geo. Van-
dermeer.

Robert J. Fellows of Bound Brook, distributor for
Somerset County was also present.

Then from the X'^ew York Branch of Bayuk Cigars,
Inc. there were Edward C. Asher, Charles Levy, Ben
Albert, C. K. Zimmering, Sol Enndy, Peter Rubino,
J. J. Gale, A. V. Swagerman, Geo. H. Barrett, J. J.
Murphy, L. Weinstein, Fred J. Hillman, Thos. S.
Hughes, Harold L. Little. L. HotTman, Meyer Klein-
stein, John D. Pash, Samuel Saul, Thomas Opetsinger,
J. D. Zeitlich, C. L. Johnson, A. W. Gondey, L. J. Rip-
])erger, Frank A. Giimi, W. G. Kinkade, Geo. Lindquist,
Max Weidler, Wm. Jelling, Jos. H. Florsheim, Jesse
Berger, P. Michael McGurn, L. O. Lassele and Fred E.
Brown, branch manager.

From the home office at Philadelphia there were
])resent Harry S. Rothschild, ]3resident, A. Jos. X^ew-
man, vice-president and general sales nuinager, and
E. M. Hirst, chief of the advertising dep't. and expert
bowler of the Bayuk Phillies bowling team.

X'^eal D. Ivey represented McKee Albright, Bayuk ^s
advertising agency.

The guest of honor was I. Goldberg of Coatcsville,
Pa., better known as the Boy Bandit. (Ike, reported to
be ninety and nine, carries his years very lightly.)

Also present was Ed. C. MacAllister, chairman of
the arrangements committee, master of ceremonies, and
guardian of the wine cellar, and Charles Wright,
specialty man.

COURT VICTORY FOR BAYUK

On February 20, 1934, the Supreme Court of the
State of Xew York awarded Bayuk Cigars, Inc.
damages of $10,000. and costs in an action instituted by
Bayuk Cigars, Inc. against Julius Landsman.

The cause of this action was based on the use by
Landsman of the w^ord ** Philadelphia" on labels and
bands of cigars sold by him; Bayuk Cigars, Inc. asked
the courts to protect them against the use of labels and
bands which thev claimed and which the court held in-
fringed on the labels and bands of Bayuk Philadelphia
Cigar.

Amendments to Leaf Tobacco Code

MEXDMP:XTS to the section on unfair methods
of competition of the proposed code of fair
competition for dealers, redryers, packers, and
storers of leaf tobacco, were ofTered at a public
hearing which concluded at the MayHower Hotel, Wash-
ington, on May 21. To the original provisions of the
proposed code, which listed only false advertising and
misbranding as unfair methods of competition, J. C.
Lanier, of the tobacco section of the Agricultural Ad-
justment Administration, offered 12 amendments,
covering methods of weighing, time for payment, deter-
mination of opening dates for markets, prohibition of
collusion, and regulation of sales.

The amendment regarding weights would prevent
llie buyers from y)assing back to producers losses in
weight sustained by theft, handling, or loss in moisture,
after the tobacco had passed into the purchaser's pos-
session. Buyers could require reweighing of their
purchases at time of sale on auction markets by a
licensed or bonded weighmaster, for settlement on that

14

basis. If lots of tobacco were not reweighed, the l)asi.s
of settlement would be on the weights listed by the
warehouse at time of receiving tobacco from farmers.

The Secretary of Agriculture would be given
powder, under a proposed amendment, to determine the
oi)ening date of auction markets in various areas.
Maximum rate of sales would be limited to 3^)i) baskets
or piles per hour on any auction floor, except for
Federally graded tobacco, in which case the maximum
rate of sale would be 37.3 piles or baskets per hour.
Also, buyers w^ould be ]jrohibited from purchasing at
private sale any tobacco which has been disj)layed on
the auction floor, until it had tirst been offered for
auction.

The buyer making the last bid would be considered
the purchaser of the tobacco, unless the bid is rejected
by the owner, and buyers could reject sales only on
])roof that purchases have been "nested" or
''shingled,*' or the true grade and damage have been
hidden by some such device, according to amendments.

The Tobacco World

NEWS PROM CONGRESS

{Continued from Page 5)

,PC0very, naming specifically the Wagner bill giving
ncrnuuient status and increased power to the National
labor Board, the Connery bill providmg a 30-ii()ur
week for industry, and the securities legislation.

The country is rapidly approaching a limit to the
i-ipacily of the consumers' goods industries to absorb
unemployment, it was warned by the comimttee, oi
which Clay Williams, president of the R. J. Reynohl;
Tobacco Company, is a member. Even if this clas^ (>
industries were to employ more labor than in 3.)J.», it
was said, the bulk of those today out of work would
still remain unemployed. x • • u.

"The main burden of unemployment is in the
.anital goods industries," it was asserted, "and tins
Iniiden cannot be loaded entirely or primarily upon
those manufacturers producing consumer goods. At
this stage of recovery, we believe that further sub-
stantial ])rogress in reabsorbing the unemployed nec-
..ssarily depends upon revival of capital goods indus-

1 ries

'**The natural question, therefore, !st What re-
tards and destroys such confidence? We believe the
answer is found in the unnecessary and repeated stir-
rin- up of uncertainties and fears which, while assuni-
iu"-" political form as legislative proposals, are perti-
nent because of their direct bearing on the economic
factors involved."

<(

ON OUR WAY" SAYS BROGAN

Paul Brogan, vice-president of Yahn & McDonnel
<1-ars, believes that the depression is really over and
tliat we are definitely on the upward trend. He is so
lirmlv convinced that such is the case that his firni has
PU-acVed W. E. Yoemans, formerly representing P rings
B^os: Co., to represent hi^s firm in southern ^ew Jer-
sey. And just to show that his heart is m the ngh
place and that he is co-operating with the President
in his re-employment program, they will take on
another salesman within the next two weeks. Mr
Brogan states that their business is definitely sluming
Mu increase, and unquestionably we are **on our way
1(1 recovery.

c

WAGNER IN 3 NEW SIZES

John Wagner & Sons announce that they are pre^
paring three new sizes of their Wagiier brand of
cigars, which will soon be ready for distribution to
tiit^ tride and which they believe will further increase
the popularity of this brand. The nevv sizes w'lll be
larger and in popular shapes which wil ajipeal to the
consumer. This fine brand is already en,ioying a
si,leiidid call. . . . Their Monticello cigar and Don
Sebastian lines are also going very good. Ihey re-
cently completed a promotional campaign among the-
smokers of high-grade cigars, on these brands, with
irood results. . . . They also report that their stock
of imported brands is rapidly becoming depleted, and
as there is an increasing demand for this type ot mer-
chandise at this time, the condition is assuming serious
•ui<'les Their Monticello smoking tobacco is

'als^o enjoying a steadily increasing demand as a result
of promotional work carried on in the middle west,
where many new placements have been obtained and
repeat orders received.

April I, 1934

LILLIAN RUSSELL

\ for
5c

CIGARS

CIGAR

P. LORILLARD GO'S

Quality

2 *«•• 5^

Cigars

Meeting the public's demand
for quality cigars
moderately priced

NEW

CURRENCY

CIGARS

2

for

5c

Our Other Popular 2 for 5^ Cigars
JAMES G. BLAINE • • POSTMASTER
LA FRAOSA • SARONA • WAR EAGLE

J

TOBACCO TRADE ORGANIZATIONS

TOBACCO MKRCHANTS ASSOCIATION ^L

OF UNITED STATES "^^i,
il"'J» ' JJ.'t President

JESSE A. BLOCH. Wheeling. W- Va. Vice-President

jJi-f'-Ji^VrfMl^Ne^^^^^^^ N. V :vic::K:s

(iKclKGE II. IlLMMELL. Ne« Wk. N. "l Viclpr.si,lent

W II, SIIEI.TOX. Wa.hinKton, D < iA'icePreMdtnt

J^Ili'c^^V^-.l'ilW;; f:i,&^^^

Headquarters. .^41 Ma.lison Ave., .New ^orJc eiiy

RET -ML TOBACCO DEALERS OF AMERICA. INC.

WILLIAM A. HOLLINGSWORTH. 233 Broadway New Vo^^^'^^Ji^^/vice-Pre'sldenl

( LIFFORD N. DAWSON. Buffalo. N \ .txecm. Treasurer

JAMES C. THOMPSON, Chicago, 111

A^^OCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

• ■ , ,, , f,.^ President

JOHN II. IH'YS New \ ork C.ty p.^^^ Vice-President

illLTON RANCK. Lancaster, Pa. - Vice President

I). EMlL KLEIN. New \ork City Secretary Treasurer

LEE SAMUELS, New York City -'^"^

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

. ., 1 M T President

ARE BROWN. 1» Grumman Ave. Newark. N. J .■.•;;Fi;;t' Vice-President

ALBERT FREEMAN. New \ nrk N. \ i.. Second Vice-President

IRVEN M. MOSS. Trenton, N. J Secretary

A STERNBERG. Newark, N. J

RFT ML CIGAR STORE ASSOCIATION OF PHILADELPHIA

•^'' President

M« )RR1S LEVITONE . - . • ^^ : " pu:iV.lVlnhia Pa" " Secretary

SAMl'EL MAGID. 2tXil N. Mervine St.. 1 hiladelpnia, ra

THF NATIONAL ASSOCl.VnONS OF TOilAcl O
DISTRIBUTORS. 1N(

., , President

E, ASBl'RY DAVIS. Baltimore, Md. ^. ■ • ■ ;^ , ^, - Secretary

SST Ji^iJ^M^^u-N^ ^'^^: . *." ' ' . " . ^ ■ ■ ■ ^—

UNITED STATES TOBACCO niSTRIBUTORS ASSOCIATION

ffERMlNTv AW-iV TO Fox BmldinB. PhlUdciT.hVaV r.. ' . . . • '. Secretary

'5

RETAIL DEALERS HOLD MEETING

N FRIDAY evening, IMarcli 16th, the recently

organized Retail Tobacco Dealers of Phila*

delphia, Inc., held a meeting at 617 Chestnut

Street, which was well attended by prominent

retailers throughout the city.

Mr. Harvey L. Hirst, chairman of the Special
Cigar Manufacturers' Connnittee, and Frank P. AVill,
chairnum of the Merchandising and Sales Connnittee,
were present and addressed the meeting on question;
involving the progress of the Code, and stressed the
need for a substantial organization of retail tobacco
dealers in Philadelphia in order to make sure that the
retail branch of the industry receives all the benefits
from the Code to w^iich thev are iustlv entitled.

Plans for an intensive mend)ership drive were
discussed and another meeting of this organization
will be held early in April, and all members of the re-
tail branch who believe in an organization of this kind
are urged to be present.

This oriranization is affiliated with the Retail To-
bacco Dealers of America, Inc., the national organiza-
tion of retailers, and is prepared to co-operate with it
to the fullest extent just as soon as the Code for the
industry is officially approved.

According to the latest information we have, the
industry's Code has received the approval of all of
the advisory boards in Washington and now needs
only the signature of the Deputy Administrator and
that of General Johnson to become a law.

If the retail tobacco dealers in this city, or anj^
other, hope to derive the full benefits of the Code when
it is approved, they should not fail to get behind this
organization and give it their fullest support by ap-
plying for membership at once and then co-operate
with it in every way possible. There is no other way
to bring order out of the chaos now prevailing through-
out the industry.

Membership application should be made as
promptly. as possible to the secretary, Samuel Green-
wald, 1205 Wyoming Avenue, telephone Michigan
6778; to George Jones, treasurer, 617 Chestnut Street,
telephone Lombard 8105; Harry A. Tint, president,
1420 Chestnut Street, telephone* Rittenhouse 0397, or
The Tobacco World would be glad to see that someone
calls on you with application blanks if you will call
Lombard 1768.

MAKE-UP OF CODE AUTHORITY

NBC

K

CREAM OF THE CROP"

ORE than four-fifths of the entire tobacco plant
is discarded in making Lucky Strike cigar-
ettes, only the choice c-enter leaves being used,
according to a statement by the manufacturers.
Tobacco is one of the most sensitive of plants, and is
particularly susceptible to diflPerences in climate and
soils of various regions. Thus, there are many kinds
and grades of tobaccos and of these only relatively few
are suitable for use in making a really popular ciirar-
ette.

**Even on the same tobacco plant,'* the statement
reads, '*not all the leaves w^ill meet the rigorous test.
The top leaves are under-developed, while the bottom
leaves are inferior in quality, coarse and sandy. The
center leaves are mildest and are fully ripe. Conse-
quently these are the only ones used, approximately H')
per cent, of the tobacco j)lant being discarded."

10

. »j HEX the retail tobacconists' Code of Fair Com-
^\^ ])etition is approved, a Code Authority consti-
tuting a representation of every significant ele-
ment of retail distribution of tobacco products
will act for the industry. The Code Authority will con-
sist of one member from the retail grocery trade, — two
members from the retail drug trade, — one representing
chains and one representing independent druggists, —
one mend)er representing all other outlets for tobacco
products and five members from the retail tobacco
trade, one of the members of the tobacco trade to be a
representative of the tobacco chains. The members
from the grocery and drug trade are to be appointed
by the Administrator.

In addition to the above nine members, the Presi-
(k^nt may appoint three additional members to serve
without vote.

It is predicted the Code will contain a clause com-
]K'lling every merchant selling tobacco products to pay
annual dues to finance effective enforcement of the
Code. At the recent conferences of Code Authorities
in Washington, it was asked that failure to contribute a
fair share to the support of Code enforcement be nuule
a violation of the Code and subject to the same penalties
and punishment as violation of any other provision in
tJie Code.

The need which prompted the request for enforced
assessments upon the industries was based upon tlic
idea that it is manifestlv unfair and un-American for a
small portion of an industry to pay all the costs of ad-
ministering a Code which protects and l)enefits all, even
those who refuse to i)av. Moreover, with evervbodv
paying an ecpiitable share of the expense, the burden
cannot possibly be heavy upon anybody.

FRICK CHESTERFIELD ANNOUNCER

ORI) FRICK, popular sports conmientator, has
been signed as announcer for the new thrice-
weekly Chesterfield series starring Rosa Pon-
selle, Nino Martini, Grete Stueckgold and
Andre Kostelanetz. The programs will be heard over
the WAB( ^-Columbia network ev^ery Mondav, Wednes-
dav and Friday from i) to 9:30 P. M., E. S. t., starting
April 2d.

Frick has held a prominent i»lace on the air for
the past four years. He is a former professor of
English at Colorado College and gave up teaching to
follow^ his great interest in basel)all and newspaper
work. He was a baseball reporter for ten years, served
a term as president of the Baseball Writers' Associa-
tion, and is at present manager of the Service Bureau
of the National League. He has just completed a tour
of several major league training camps.

AMERICAN SUMATRA TOBACCO CO.

American Sunuitra Tobacco Co. and its whollv
owned subsidiaries as of .January 31 (subject to audit
at the end of the fiscal year, July 31), show total assets
of $7,185,306, compared with .$7,18.3,727 on .Januarv 31,
1933, and total surplus of $4,239,168 against $4,25(),336.
Current assets, including $525,581 cash, amounted to
H;2,224,106 and current liabilities to $:i2,174. This com-
pares with cash of $477,978, current assets of $2,1(;3,-
447 and current liabilities of $15,446 on January 31,
1933. Capital sto^ amounts to 193,105 no-par shares.

The Tobacco World

nils?

1 \\

RED NETWORK
9:30-10 P. M.. E. S. T.

New York WEAF

Hartford WTIC

Providence WJ AR

Worcester WTAG

Portland WCSH

Philadelphia WFI-WLIT

Baltimore WFBR

Washington . . . WRC
Schenectady . . . WG Y

Buffalo WBEN

Pittsburgh ...WCAE
Cleveland ...WTAM

Detroit WWJ

Cincinnati WSAI

•

8:30-9 P. M.. C. S. T.

Chicago WMAQ

St. Louis KSD

Des Moines WOC-WHO

Omaha WOW

Kansas City WDAF

Seven Months Withdrawals for Consumption

«:.

( ii^ars:

( 'lass A—

rnited States
Puerto Rico .
Philippine Is.

Total

Class B—

United States
Puerto Hieo
PhililJpine Is.

l.^'i 8 Mos.
Fiscal Yr. 1934

2,547,1)40,700 +

37,191,980 —

160,517,595 +

-Decrease

■ Increase

Q}(n)ititif

229,244,965

2,273,090

44,476,860

2,745,650,275 + 271,448,735

21,851,485

2,150,100

108,264

-f

6,795,641

2,062,850

412,429

Total

24,109,849 — 5,145,220

( 'lass C—

United States
Puerto Rico
Philippine Is.

Total

( 'lass D—

United States . .
Puerto Rico . . .
Philippine Is. . .

Total

Class E—

United States ..
Puerto Rico . . .
Philippine Is. . .

Total

Total All Classes-
United States . .
Puerto Rico . .
Philii)pine Is. . .

392,202,480
734,430
187,142

393,124,052

30,088,540
1,0(K)
2,050

83,202,520

167,450

12,100

83,382,076

4,784,032
5(K)
174

30,091,590 — 4,784,358

3,843,646 —
2,556 —

550,315
24,217

3,846,202 —

574,532

2,995,92(»,851 +

40,077,510 —

160,817,(507 +

133,912,457
378,190

44,028,282

Grand Total.. 3,196,821,968 + 177,562,549

Little Cigars:

United States . .
Puerto Rico . . .
Philippine Is. . .

Total

Cigarettes:

United States . .
Puerto Rico . . .
Philippine Is. . .

150,408,574
2,030,000

16,760,227
1,024,000

152,438,574 — 17,784,227

74,705,211,562 + 6,540,636,269

3,036,000 + 792,660

891,250 — 364,460

Total 74,709,138,812 + 6,541,064,469

Large Cigarettes :
United States
Puerto Rico
Philippine Is.

Total

36,846,700 +

645,000 +

6,400 —

34,780,763

285,000

4,591

37,498,100 + 35,061,172

SnufT (lbs.) :

All United States 24,558,277 + 1,599,975

Tobacco (nifgd. lbs.) :
United States . .
Philippine Is. . .

Total

203,135,515 4-
71 —

3,170,234
120

203,135,586 -f 3,170,114

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name

Street No.
P.O.

_State

rr

^pnl t 1934

^

EstabliaheJ 1886

"BEST OF THE BEST

99

^^;^±^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West, Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco ni«l(o^ 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. AROMATIZEB, BOX FLAVOES. PASTE SWEETENERS

FRIES A BRO., 92 Reade Street. New York

PJBRmUJIl^^^^

Classilieci Column

The rate foi this column is three cents (3c.) s word, with
a minimum charge of seventy-five cents (75c.) payabU
strictly in advance.

:r78?ir;>8vir/80tr8virytvir>8<i?i^»t?^^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE^ — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last PuflF,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, SEw'ioS'cm

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

Registration,

Search,

Transfer,

Duplicate Certificate,

(see Note A),
(see Note B),

$5.00
1.00
2.00
2.00

Note A— An allowance of $2 will be made to members of the Tobacco M«r>
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

D. R. D. A.: — 46,303. For all tobacco products.
ply Co., Detroit, Mich., March 10. 1934.

American Bo.x Sup-

TRANSFER

REN WICK PARK:— 46,297 (Tobacco Merchants' .Association). For
cigars, cigarettes and tobacco. Registered February 8, 1934, by F.
M. Howell & Co., Elmira, N. Y. Transferred to Ren wick Cigar
Co., Newfield, X. Y., March 16. 1934.

WHITE CASTLE:— 36,149 (United Registration Bureau). For ci-
gars, cigarettes and tobacco. Registered December 2, 1910, by
George Schlcgel, Xew York. N. Y. Through mesne transfers ac-
quired by J. I. Schindler, Red Lion, Pa., and re-transferred to
George Schlegel, Inc., New York, N. Y., February 8, 1934.

SAVANA: — 20,131 (Tobacco World). F^or cigars, cigarettes, che-
roots and tobacco. Registered May 4, 1910, by T. \. Wadsworth.
Detroit, Mich., and 40,682 (Tobacco Merchants' Association), for
cigars. Registered May 16, 1918, by Mazer Cigar Mfg. Co., Detroit,
Mich. Through mesne transfers acquired by the .American Box
Supply Co., Detroit. Mich., and re-transferred to D. Emil Klein
Co.. New York. \. Y.. February 28, 1934.

RESILIA: — 26,204 (Trade-Mark Record). For cigars. Registered
February 10. 1902. by Henry Drucker, New York, N. Y. Trans-
ferred by Harry Procliaska. Inc., New York, N. Y., successors to
the registrant, to the La Floridana Cigarette Co., Tampa, Fla.,
March 15, 1934.

The X. Snollenburu: departinent store has rear-
ransfed their cigar department so as to give much J)etter
di.^play to their merchandise and are displaying Had-
don Hall and Medalist cigars in three sizes to good
advantage. They also have Melval cigars (Wert-
heimer Bros., Baltimore), El Producto, Gonzalez &
Sanchez, Dntch Masters and Garcia y Vega well dis-
played.

"What a welcome visitor
The Tobacco World
must be to wholesalers and
retailers!

"If they are only half as
interested in reading it as
we ourselves are, we're glad
our ad is in it regularly" —

says an advertiser.

APRIL 15, 1^34

MM

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.
Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

Phila., Pa.
Hanover, Pa.
Cincinnati, Ohio

York Pa

AUTOKRAFT BOX CORPORATION Chicago, lii.

Lima Ohio Detroit, Mich.

A Nationwide Service Wheeling, W. Va.

=

II

nmnnni

UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA

After
nothing

all
satisfies like^

a good cigar

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

/when buying cigars

I Remember that Rcgjrdleu oi Price

I THE BEST CIGARS

I ARE rACKES ir%

^ WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

APRIL 15. 1934

No. 8

The TOBACCO WORLD has signed the President's agreement and
,%■ operating under NRA Code, gladly and wholeheartedly co-operattng to
the fullest extent in the Administrations effort to promote industrial re-
covery.

D VANCE estimates of cigarette production for
:^Iarcli show a gain of about 20 per cent., or
five billion units better than the corresponding
period of last year. This puts last month's
], reduction above March of the last two years and m
•idvance of Februarv, when the substantial production
of more than nine billion, 167 million, was recorded. It
is not likely, however, that the total will exceed the
neak March of 1931, with a production of more than
nine billion, 800 million units. In January and I eb-
niary combined, production reached a new high ot
"0 650,983,500, compared with the previous high for
Uiose two months of 18,()73,2.37,190 in 1930. It is esti-
mated that production for the first three months ot
this year will total thirty billion cigarettes.

no matter whether or not his class of cigar registered
a gain. If the total cigar business continued to dwin-
dle, then we could have had something to worry about.

XD why do cigar men do so much worrying over
the growth of the cigarette business! There
again, the average man in the trade does not
seem to interpret the facts properly. If, dur-
ing the time that smokers had been cutting down on
tiieir cigars, they had been treating the cigarette the
same wav, don't you see what that would have meant!
It would have meant a decline in the appeal which
tobacco has for Americans. It would have meant that
the habit of smoking was itself on the decline. As long
as people continue smoking tobacco in any form, there
is a good chance for every manufacturer of a tobacco
])roduct to do a profitable business. No, the growth of
the cigarette has not discouraged me. On the con-

■ OULDif 'T it be a fine thing, we thought, if sim-
\n ilar gains could be announced for cigars!
' Wouldn't it be splendid if the March figures
— should record another gain for cigars, m line

with those of the last several months! And it was
while we were thinking these thoughts that we fan into
Frank P. AViH, executive vice-president ot (j. 11. I.
Ci'^ar Co., who came back from a Western trip, spent
a few hours at his desk, then beat it to Washington
on one of his numerous journeys in the interest ot the
ri<.-ar code, and tlien returned for a few hours to his
office. We caught him between trains, as he was ex-
])ectini? to hop to Washington within an hour.

trary, it has encouraged me.

NOTIIER thing that sometimes amuses me, and
would give me a laugh oftener, if only it were
not so exasperating. It is the attitude of the
man who tells me about the wonderful business
another cigar manufacturer is doing, expecting he is
«»-oin*'- to cause me to w^eep on his shoulder. He is sur-
prised when I tell him he has brought me good news.
Sometimes he does not seem to get the point when I
exi)lain that if I knew of a cigar manufacturer who
was putting out a good product, at an attractive price,
advertising it and promoting it, and still not making
anv sales, then I'd begin to reach the conclusion that
I «m-ht to get out of the cigar business. Certainly it is
good news to hear that the opposite effect is resulting.

T WOULD be a fine thing,'' said he, *'but the
..^„. Vmsiness is doing encouragingly well
rio-ht now, and has been for some time. l)o

vcm realize that there has been a nice

(r

am

in cigar withdrawals for tlie eiglit inonlhs .■iKlms 1' eb-
vuarv 28th? To my n.iiKl, Hiat is somethmf: to re-
joice over, when von compare tliat gratilyni!; result
with the steady and seemingly never-ending losses in
Ihe total figures for the last several years. I ''Y^ "°
patience with the man in this l.nsn.ess who wdl take the
U.tal figures apart for the sad pleasure ot showing that
the iivc-cent cigar accounts for the gains «>" '^'^r-
eomes losses in other classes. He does not seem to
realize the point. The point is that people have not
sopped smoking cigars. They are smoking more
,. "ars now and have been smoking more cigars during
the last eight months than during the corresponding

something in favor of everybody in the cigar business,

The TOBACCO WORLD (published 1881) U published by J°b?cco World Co.poratiom
Ger.ld'B. mnk,ns^Se^eUry. 6ffi«. 236 Ch'V"u' S^«««- Jh.Udelph^^^^^^^^ , ^„, £„,,„<) „ second-das, m«l matter.

??J?^tr'°22^°^TtgX{''orcrrhU^^^^^^^^^^

E MEX in the cigar business are too prone, I

Xn am afraid, to put the blame for unsatisfactory
' l)usiness anvwhere except where it belongs. It
is too much the custom to blame bad business
on bad conditions, or on this, that or the other reason,
when the blame should rest on our own shoulders ^o,
voun- man, vou can't make me feel unhappy by telling
nio how well the cigarette people are doing, nor how
well some other cigar manufacturer's product is going
over As a matter of fact those are two ot the three
ro-isons whv I am feeling fine this morning over the
outlook. tL third reason f ^Xf. we don't like to talk

a)>out ourselves, but ." Thank ymi, ^Mr- ^V il^ tor

ri ng our editorial for this issue. You didn't know
vmi were doing it, and you'll be sui^rised when you see
it for the first tinie here in print, but you did a work-
manlike job, just the same.

Cheer Up! We'll Soon Have A Code

Argument for Tax Reduction

• »g HEX aiinouiiconiont oaiiio from Vincoiit Astor's

\f^ yaclit that the l*rosi(loiit would add anothor

week to his fisliiiii>- trip, it iiieaul that in all

probability the Kotail Tobacro Dealers* Code

would not be siuned bv ^[i*. Koosevelt until some dav

after his return to his White House desk on or about

April l()th.

That the Presidential signature will ])romul<»ate
the Code as a part of the law of the land in about ten
days or, at most, two weeks, from now, seems to be the
Sfoneral opinion of those who elosely observe i)olitieal
developments in AVashini»:ton.

As the Code is now written, ]\rr. Roosevelt's act of
sifirnine- it will eliminate all over this count rv anv fur-
ther use of tobacco products as loss leaders antl will
immediately protect all tobacco retailers from jn'eda-
tory price-cut tini? and from any other trade practices
that have been threateninu" to destroy them.

Xo sooner will the ink of the President's signature
be drv than the man who tovs with tobacco products as
loss leaders will l)e branded a law-breaker. Similarly,
he who fjoes in for vicious ])rice-cutting' will be a vio-
lator of the law — an offender, each of whose otTenses
mav cost him ^oOO for everv dav that he continues this
expensive form of rascality.

The Retail Tobacco Code authority can and will,
from the very bejiinninir, go after such malefactors in
earnest. These are the davs when strict enforcement
of codes strikes a popular note in the Xational Cai)ital ;
and it can be stated without fear of contradiction that
the co-operation of the Xational Recovery Administra-
tion and the ap])roval of the White House itself will
encourage the Retail Tobacco Code authority in its
determination to compel, if necessary, 1(10 ])er cent,
compliance with the terms of its Code.

Kot that anything of undue harshness will he un-
dertaken. Everv man will be given his dav of exi)lana-
tion. If a^ charge of Code violation is made against
Mr. A., he will be called l)efore his local compliance
board. If found guilty and if i)ersistent in his viola-

lion, ^fr. A. will find himself obliged to take a trip to
AVashington, i)erliai)s — or something e(iually suggestive
of his Code authority's jmwer will be em])loyed to
impress ujwn him the advisability of i)laying fair with
his competitors and with the law.

The details of the com])liance ])rocedure have not
been entii-ely worked out, but at this date it is safe to
say that they will be workable, that they will be em-
l)loyed without hesitancy, and that, if the Code is
iiouted and defied, the law-breaker will lind himself at
the end of a road that brings him face to face with a
l)rosecuting attorney.

In a word, Retail Tobacco Dealers of America have
made uj) their minds that, the moment the Code be-
comes elYective, the wheels of its com]>liance machinery
shall begin to turn.

The members of thoir Code Committee, having sac-
rificed their time, money and business to the jol) of
securing a good Code under the XRA, are resolved that
the industry shall leceive every jmssible benefit from
the oj)eration of that document.

Its ])rovisions ])ut an end to ])redatory ])rice-
cutting, an<l they prohibit and ])revent loss leaders in
retail tobaceo ])roducts. Obviously, if one violation of
those ])rovisions went un])unished or unrebuked, others
would s])eedily follow until they would take on the ap-
l)earance and the destructive force of an avalanche.

In other words, the same old vicious trade prac-
tices which the Code forbids would soon be coming
down u])on us through the unguarded door of non-
compliance. That is one thing which the Code Com-
mittee is determined shall not ha])pen.

At this writing, *'The Code," the X>w Deal for
tobacco i-etailinu', is pi-acticallv readv for (Jeneral John-
son's desk: and the belief in Washington is that the
(leneral will have it at the White House readv for the
Presidential signature when Mr. Roosevelt gets back.
Cnless something unfor(»seen occurs to jirevent, this
program will go through.

Essential Provisions of Cigar Code

T IS our latest information that the Cigar
Manufacturers' Code, as ap|)roved by the Xa-
tional Recoverv Administratif)n and Agricul-
tural Adjustment Administrati(»n, and now
only awaiting the President's signature on his return
from his fishing trip, contains the following essential
provisions concerning wages, hours, coch' authority,
sales bv manufacturers, sales bv joblurs to sub-
jobbers, and sales l)y retailers:

Wages (Hand Factories). — Strippers, 22' - cents
per hour; unskilled labor in the South, L''); cigarniakers
(a) 2 for 5-eent factories, 27; (b) 2 ') to .l-cNMit, llO;
(c) 2 5 to 5-cent (South), 28; (d) al»ov<' :> cents, :U;
(e) above 5 cents (South), .'?2. Tolerance of 2.") per
cent, in slow workers, who may receive less than sj»eci-
fied minimum wages, is allowed.

Wages (Blachine Factories). — Stri])pers, 22V1»; un-
skilled labor in the South, 25; machine o])eiators, 2/5
cents, 29; machine operators, above 2/5 cents, :U; same,

in the South, ',V2; slow workers, 1(1 jjcr cent, tolerance.
Piece rates shall be established sr> a< to yield minimum
rates named in al)ove schedules.

Hours — Xo employee may work longer than 40
hours per week or eight hours per day, except execu-
tives receiving i);.'>5 per week or more, outside salesmen,
watchuKMi (not ovei 5f> hours j)er week), chauiTeurs and
deliverymeii (4"^ hours ])er week), firemen and engi-
neers (44 hours ])er week), shi])piiig dej)artment em
jiloyees (44 hours j>er week, with ])ayment of one and
one-third time for overtime in rush seasons), and j)ro-
ductive employees during two rush seasons each year.
All the time worked on Sundays and legal holidays,
exce|)t by watchmen, engineers and firemen, shall be
paid at the rate of time and one-third.

Code Authority — The Cigar Manufacturers' Code
Authority shall consist of nine to thirte(»n members,
three of whom shall be hand and three machine manu-

By Junius Parker

{Continued on page 13)

Th* Tobacco World

10 KESPECTFrLT.Y and (earnestly urge upon
the committee the wisdom of a horizontal re-
duction of the taxes on cigarettes, tobacco of
all kinds and snuff, of at least 40 \)vv cent.
That means (eliminating the fraction in the case of
lobacco and snulf) a reduction from '^'^ ])er thousand
t., ^1.80 ])er thousand on cigarettes, and from 18 cents
per ])ound to 10 cents ])er ])ound on tobacco and snuff.
We l)elieve we know the industry, and we believe ])ro-
I'oundly that the ado])tion of our suggestion would be
1(> the great and lasting benefit certainly of the large
and important grouj) of ])roducers of leaf tobacco and
the large and im])ortant group of consumers of tobacco
and its products. In that field we are confident. Wo
realize, though, that the Congress has a broader out-
look on the matter of government finances than we, and
we realize that every form of taxation works its own
liardsliij) and has its own disadvantages, and yet that
the government must have large revenue. It is in that
liehi that we are diflident. We conceive it a duty,
though, as we deem it a privilege, to utilize this oppor-
lunitv to i)resent frankly our views in the tield in which
we certainly ought to have special and exi)ert informa-
tion and o])inion.

The i)resent taxes on to])acco jind tobacco ])roducts
are not war taxes: they are higher than war taxes and
may 1)0 more ])roi)erlv called Prohibition Amendment
taxes. In Xovember,' IDIT, there were put into effect
the*^var taxes." These ''war taxes" were at the rate
of $2.05 per thousand on cigarettes, an increase from
$1 '\5 and V.\ cents ])er ])ound on tobacco, an increase
from 8 cents. In January, IDli), the Prohibiti(»n Amend-
ment was i)assed. (^)niiress was confnmted with the
necessity of making good more than $400,000,000 paid
in Internal Revenue by intoxicating beverages, and it
was then that the tax on cigarettes was raised from
$2.05 i)er thousand to the ])resent rate of $3 per thou-
sand, and the tax on tobacco was raised from l.'J cents
]>er pound to the jn-esent rate of 18 cents ])er ])ound.
Stated otherwise, two farm horses had been pulling a
tax load for a long time, an<l in \\n\) one was killed, or,
as the final outcome showed, put out to pasture, so lar
as revenue was concerned. So an additional h»ad was
put on the horse that was still in harness— the tobacco
industrv. With the emphasis of understatement, I may
^ay that the "Mobaeeo horse" has carried the doul)le
huVden fairlv well. In the fiscal year that ended .lune
.III, I'JlS, the*tol)acco industry i)aid in Internal Revenue
taxes $15C),000,(>00 an<l in the fiscal year that ended
.June :^.0, ID.U it paid $102,000,000. It seems to ine
there is an element of dramatic justice -now that this
other horse, that has been dead, or out at pasture, is
back in harness—that tlnM-e sliouhl be s<»me reliet given
1(» the horse that has carried so long so heavy a l)urden.
Of the !^1.2t) reductinn in cigarette tax which we sug-
gest I>5 cents is Prohibition tax an<l only 25 cents ia
war'lax, and we shall still ))e left with a 55 cents higher
ate than in pire-war days. Of tlie s cents reductinn
tliat we ^u«»'irest in tobacco tax, .) cents is a Prohibition
tax, and we shall still ))e h'ft with a 2 cents per pound
higher tax than in pre-war days. ... ...

So far as ciyarettes are <'oncein(Ml, the immediate
effect is predictal)le with al>solute assurance. Leaving
out of account as unsubstantial by comparison with the

April 13, 1934

whole business, the cigarettes that weigh more than
three i)oun(ls ])er thousand and the cigarettes made
entirely of Turkish tobacco, all of which sell for higher
])rices, we have in this country a j)roduction and sale
of well over 100,000,000,000* cigarettes which are
packed in ])ackages of twenty and which go to the con-
suniei- at 15 cents per ])ackage or less. These cigarettes
mav be divided into two classes of which the very much
larii:er class in volume of sales is what I would call
"standard cigarettes." I am not going to call them 15-
cent cigarettes because they are not 15-cent cigarettes,
and to call them 15-cent cigarettes induces entirely mis-
leading comparisons of tax percentages, and other such
misleading comparisons, that ought to be avoided.
They are and have been sold at prices ranging any-
wIh re from 11 cents, or even, at some times and at some
retail stores, 10 cents to 15 cents ])er package. Camel,
Chesterfield, Lucky Strike, and Old Gold are some of
the well-known cigarettes of this type. AVith the reduc-
tion in tax suggested, they would all certainly go to a
customary i)rice of 10 cents per ]jackage. I am likewise
a little embarrassed as to what to call the other sub-
stantial class of cilia ret tes. I do not call them lO-cent
cigarettes because that is not a ])ermanent name for
them: If the tax reduction we suggest is made, they
will sell at a lower ])rice than 10 cents — I should, if I
used a ])rice name, hereafter have occasion to refer to
them as 8-cent cigarettes— and it ai)pears that if the
tax reduction is not made they will sell at a higher price
than 10 cents unless, indeed, a governmental subsidy in
the shai)e of a tax differential is given to their manu-
facturers. From the report of a hearing at which man-
ufacturers of these cigarettes were heard by the Ways
and Means Committee some time in January, I find
that a member of the committee naturally and spon-
taneously called them the ''cheap cigarettes," and that
there was some suggestion that that phrase might re-
flect on their cpiality. It seems to me it does not, and
1 have no intention to make that reflection. I cannot
easilv make and use a i)hrase to take the place of a
>inii>le, spontaneous word, so I shall call them the cheap
cigarettes, referring only to their always selling at a
lower price than the standard cigarettes. These ciga-
i-ettes, with a tax rate of $1.80 per thousand, would go
to the consumers in ])ackages of twenty at 8 cents per
simile package, two for 15 cents.

In tobacco, whether smoking, twist or plug, and m
sinilT, the immediate result of the suggested reduction
i. lint so detinitelv and certainly predictable in detail,
thou'di it mav w'ith equal contidence be predicted m
..vneral result": Smoking tobacco, including scrap, and
smifl*, are in statutorv ])ackages, but the packages m
the trade are various, and they may under the law vary
from each other to the very small extent of one-eighth
of an ounce. In the case of i)lug and twist tobacco
th, re are no statutorv ])ackages ; the product is sold in
iH.xe. or caddies with the size of the consumer content
tiK.Mi hv indentation, or a spacing, so far as plug to-
),acco is conceriH'd, and by the size of the individual
twist so far as twist tobacco is concerned. In all of
thi^ tobacco business the competition is keen and unim-
peded Those eimaged in it are numerous, they are
Inr-e and small, thev are prosperous and unprosperous,
•ind thev have not, even in the dim historic past, had

the slightest tie that binds. In this condition, and with
the flexibility that exists under the revenue laws, and
with the customs of the trade and the habits of con-
sumers, the manufacturers would pass on to the dealers,
and through the dealers to the consumers, the tax re-
duction, not many by a change in price, it seems to me,
but generally bv an increase in the unit content. This
is so because far and away the majority of consumer
sales of tobacco products other than cigarettes and
cigars are now in 10-cent units or 5-cent units. Some
of the manufacturers, though, would undoubtedly
change their prices instead of, or as well as, their units
of sale. It seems to me that, with these conditions,
including the condition of competition, either by en-
largements of units of consumer purchase or by direct
lowering of prices, substantially all of the proposed
reduction would be passed on by the manufacturers.

I realize that as ai)i)lied to cigarettes, whether
standard cigarettes or cheap cigarettes, I have made
only oracular assertions, and tliat it behooves me to
state, tirst, what justities these assertions, and, sec-
ond, if I am to be of any aid to you, what is to be the
secondary effect on the different classes engaived or
interested in the industry, and tlie government's reve-
nue, of all these tirst results of the reduction in tax
that we urge: First, as to the standard cigarettes, the
price that now prevails is srfJ.lO ])er thousand less dis-
counts of 10 per cent, and 2 per cent., wliich makes
a net manufacturer's price of $5.38. All cigarettes are
sold at a list })rice less 10 ])er cent, and 2 per cent., but
I think, complicated as the matter is at its best, it will
be easier for you to follow me if I disregard always
hereafter the list ])rice and talk in terms oi net manu-
facturer's price. The present tax is $3 per tliousand,
so the manufacturer of the standard cigarettes is re-
ceiving a price ex tax of $2.38. If the tax is reduced
as proposed to $1.80, and the present existing price
ex tax of $2.38 is added to the i)roposed tax of $1.80,
you have $4.18. Now $4.18 is approxinuitely the price
charged by the manufacturers of cheap cigarettes for
their .products — their actual price is $4.19 or 1 cent
higher than my computation, and you will remember
that this is the product wliich is sold by them to retail
at 10 cents. It provides a margin of IG per cent, for
distribution. Suggestions have been made that a net
manufacturer's price of $4.10 per thousand, if the
cigarette is to be sold to the consumer at 10 cents for a
package of 20, permitting a somewhat better margin
for distributing merchants, would be wise. With
that suggestion I am in hearty accord, aTid I hope that
manufacturers of standard cigarettes are in accord
with it, too. If the $4.18 price should be adopted, the
manufacturers of standard cigarettes would have
passed on all of the tax reduction; if the wiser ])rice of
$4.10 should be adopted, then they would have passed
on the whole tax reduction plus 8 cents per thousand.
If one manufacturer adopts this policy, wise as it seems
to me, the others nmst follow.

That last sentence suggests to me a digression that
I must make, and had just as well make now: Being
warned by things that were said before the AVays and
Means Committee in January, I shall anticipate the
suggestion that even with the reduction of tax the Big
Four will get together and profiteer. There is not,
never has been, and never will be a ** getting together"
in the fixing of their jjrices by the four corporations,
or any two of them, that are called collectively the Big
Four. Identity of price between competitors, or the
quick following of a change in price of one competitor

by another, is even more frequently indicative of keen
and ai)prehensive conqietition than it is of combina-
tion. The cheaj) cigarettes of Axton-Fisher and the
cheap cigarettes of Brown & AVilliamson, the two manu-
facturers who made this suggestion, have ])recisely
the same list prices and ihe same discounts, and so like-
wise their mentholated cigarettes are sold at ])recisely
the same price, and yet I do not suggest that they got
together and fixed their ])rices by agreement. In the
same way, and only in the same way, is a price change
in Camel quickly followed, for instance, by u ])rice
change in Lucky Strike. Again, if the four corj)ora-
tions called collectively the Big Four, or any two of
them, have established their prices by agreement, they
have violated the Sherman Law, and, besides that,
tliey have violated the equity decree of 1911 under
which they are operating. So if any one of them is
agreeing with any competitor as to ])rices to be
charged, it is, on l)oth accounts — for violating the
Shennan Law and for violating an equity decree —
liable to a ]iroceeding instituted by the Department of
Justice. If anyone has information that warrant such
an accusation, let him present it to the Dejiartment of
Justice; in the absence of such information the insinua-
tion ought not to lie made to clutter up the considera-
tion of a taxing statute.

As to cheap cigarettes: Naturally with standard
cigarettes then selling at 10 cents, the mainifacturers of
cheap cigaiettes would desire the benefit of a lower
])rice in an effort to maintain and increase their sales.
They would secure a retail price of 8 cents, two for
15 cents, without the necessity of passing on the whole
tax reduction, but with precisely the same financial
assistance to themselves that is embodied in the sug-
gestion they made in January: Their price is now
$4.19 which, with a tax of $3 leaves a price ex tax of
$1.19; their suggestion was a $2.70 tax with a manu-
facturer's price of $4.10, which would mean a $1.40
price ex tax, or an addition to the net manufacturer's
price to cover increasing costs of 21 cents. Add this
$1.40 ex tax price that they suggest to the $1.80 tax
that we suggest, and you have a price of $3.20 per thou-
sand, giving to them the 21 cents per thousand of relief
which they sought, and bringing a price of 6.4 cents per
package of twenty, which certainly brings an 8-cent
consumer price per package, two for 15 cents. It is on
that account that I predict that the cheap cigarettes
would be sold by the manufacturers with the tax reduc-
tion we suggest at approximately $3.20 per thousand.

From the consumption of cigarette paper in this
country during the years before the depression, as,
for instance, the fiscal year ended June 30, 1929, I
assume that some 12,000,000,000 **roll-your-own"
cigarettes were consumed then. It is my earnest be-
lief that the phenomenal increase of **roll-vour-own"
cigarettes between 1929 and 1933 from 12,000,000,000
to 50,000,000,000, was not the result of any natural in-
erease in **roll-your-own" smokers, but the result of a
transfer from consumption, actual or potential, of
ready-made cigarettes by economic pressure. If the
reduction that we suggest should be ado])ted, so people
could get cigarettes they like for 10 cents, with even
norm«il prosperity, T think that there would be lifted out
of present consumption of **roll-your-o^v^l" cigarettes
into cigarette consumption, at least and quickly 38,000,-
000,000 cigarettes— the difference between the 12,000,-
000,000 consumed in 1929 and the 50,000,000,000 con-
sumed in 1933.

Musings of a Cigar Store Indian

By Chief "Young-Man-Smoke-Cigars"

(Continued on Page 16)

Th4 Tt^cco World

URTIIER entries from ''The Passing of the
Wooden Indian" by John L. Morrison in
the October, 1928, issue of Scribner's: ''The
trail of wooden Poor Lo next leads to
the studio of Julius Theodore Melchers, of De-
troit. Melchers has gone from this life, but his
.spirit still moves through the impetus he gave
art, in Detroit particularly and the West gener-
ally. Melchers was born in Doest, Westphalia. lUs
innate gift was guided and moulded in the best tradi-
tions in the Beaux Arts, from which famous institution
he graduated, to fare forth to Detroit. His jjupils
included Gari Melchers, famous in our day, Rolshoven,
and others of note.

•'When the demand for the nobler forms ran into
the doldrums, it became necessary to drag Art lo the
marketplace, quite strip her of the conventions, and
all but 'sell her down the river.' This is why Melchers
made wooden Indians now and then. The Denmark
lad, Herman Matzen, learned about Indians from him.

Cj3 CJ3 CJ3

XOTHER Detroit sculptor who made his con-
tribution to this form of useful art was Theo-
dore Crongeyer, designer and carver in the
seventies tit 55 Farmer Street. J. Leser, a
veteran tobacconist of Brooklyn, never carved a cigar-
store Indian, but has seen it done many times when
as a boy he frequented the wooden-Indian shop of one
Cobb, of Canal Street, New York. Cobb was a fast,
expert worker and never used a mallet, driving the
chisel with the palm of his hand. Fritz Decker, who
died eighteen years ago, was the last of the Philadel-
phia wooden-Indian makers, and one of the best.

"Before 1870 there was activity in wooden-Indian
making in the Milwaukee sector. A. F. Miller, AVater-
town. Wis., in the sixties bought a used 'Indian,' really
a Turk, in Milwaukee, made by a group of Swiss or
(lernian w^ood-carvers lately migrated thither.

CS3 CS3 Cj)

O FAR as my research goes, Mr. Matzen is the
oidy man living who made wooden Indians.
Doubtless tliis will elicit claimants to damn
this assertion, using the expletive in its scien-
tific and literary sense. There may be others, but the
most enthusiastic and painstaking search for knowledge
anent wooden-Indian sculptors among the great of the
tobacco world-— distributors, editors, veteran dealers,
and aged cigar-makers— failed to disclose the slightest
clew leading to the discovery of another man now in
the flesh who chiselled Indians out of 'enduring white
pine. '

**A visit to Matzen's (Meveland studio gives no
hint of his one-time experience. The bronze of tlie
pensive 'Lincoln,' the symbolic 'Cain and Abel,' stately
♦Moses', and his great 'War and Peace' group at

April 15. 1934

Indianapolis, his training in Europe's best art schools,
and thirty years a teacher of sculpture, with the noted
in art circles in Europe and America his friends and
confreres — these facts seem to cry out against the
possibility.

Ct3 Ct3 Cf]

HERP] were some importations of cigar-store
figures, perhaps not many. The Maryland
Historical Society Museum at Baltimore con-
tains a contribution to wooden-Indian sculp-
ture })y that country of sculptors, Italy. This figure,
which stood in front of John Foble's cigar store, Cam-
bridge, Md., from 1830 to 1926, has a face benign and
strongly Latin, and habiliments such as a noble Roma,n
would wear at a martyr-eating-lion matinee. His
crown of feathers, or tobacco leaves, the coil of to-
bacco at his feet, and the welcome-stranger cigar-offer-
ing save the day for the best traditions.

"La Belle France's idea of an Indian maid stood
exemplified in wood at the foot of South Street, Phila-
delphia. James LeNoir, French and twenty-two, pur-
chased an ancient tea warehouse and became possessed
of the half-pound key which operated the ten-pound
lock; and the same year opened a tobacco shop, plac-
ing in front thereof a Pocahontas he had imported
from France, her ocean journey taking three months'
time. She smoked a pipe and there she stood 'for to
see and for to be wondered at' for eighty-five years.
Her physiogonomy was of the Champs Elysees rather
than the trackless forests about Lake Huron.

Cj3 Cj] Cj]

MOXG Indians still on duty in xVmerica the
longest continuous outdoor service is that of
the red man at the Maltzberger tobacco shop,
Reading, Pa. Charles R. Maltzberger bought
him in New York, when he opened his shop in 1847,
and this Indian has stood there ever since, except Sun-
days and that day he was once kidnapped and carried
in the Order of Red Men parade.

CJ3 CJ3 CS3

NVISAGIXG the world, as the inspirational
speakers say, I nominate as dean of tobacco-
sho]> figures the Highlander, 'Phineas the Sec-
ond,' of A. Everard & Co., Ltd., 10 High H oil-
born, London, W. C. 1. Phineas is in an excellent state
of preservation, despite his one hundred and sixty
^c>ars of fluctuating fortune, which includes twenty
'years' solitary confinement in a dusty attic, relieved
by adventurous excursions with boisterous medical
students to football fields and to bait the rival team's
supporters bv unacademic combat. Unmarred by mod-
ern paint, he glories in the rich mellow coloring remm-

iscent of an old-master oil painting-. His stern but
classic features reflect the skill of the unknown carver
who shaped the mass of oak into a lifelike sombhmce
of a snutf-takinir Scotchman. Despite the repeated
importunities and offers of auticpie hunters and buyers
from museums Phineas remains with Everards, as Mr.
Harold B. Thorpe, secretary, says 'to live out ^lilton's
adasre — he also serves who onlv stands and waits.'
For one hundred and sixteen years Miller & Co.'s
Highlander has stood in their doorway, 37 London
Street, Norwich, England. Like his London brother,
he W'as carved from oak by an unknown sculi)t.or.
There have been many unsuccessful offers for this
effigy, including one from the late King Edward, when
Prince of Wales."

TO CONTINUE CIGAR LEAF REDUCTION

ORMAL notice of exercise of the option under
the 1933 cigar-leaf tobacco adjustment con-
tracts to continue the acreage reduction for
these tyi)es of tobacco during the 1934 crop
year has been mailed to approximately 18,000 contract-
ing producers in the ^liami Valley, Wisconsin-Minne-
sota, Pennsylvania-Xew York, and New England dis-
tricts by Secretary of Agriculture Henry A. Wallace.

In the notice sent to growers it was pointed out
that a supplemental payment, varying in amount ac-
cording to producing district, is now offered to those
producers who participated in tlie 1933 program, and
who now sign a rider, or revision, to their contracts
provided they perform their obligations under the con-
tract and show that their tenants received a proper
share of 1933 payments. The rider also provides that
growers may elect to keep either one-third, one-half, or
their entire base acreage out of production. Two addi- *
tional choices in determination of base acreage are also
offered.

Growers who are now under contract, and do not
sign the new rider to the 1933 contract are recpiired to
maintain the 50 per cent, reduction nuide ])y them last
season, for which they will receive adjustment pay-
ments at the same rates as those of the past season.

At the same time the cigar-leaf growers who did
not take part in the 1933 adjustment program are given
an opportunity to sign contracts to which the revisions
contained in the rider mu<t be attached. These con-
tracts cover the 1934 and 193r) seasons. These new
participants cannot qualify for the supplemental pay-
ment but will receive the other payments.

Two payments, in addition to the sui)plemental
pajTnent, will be made to growers who ])articipate in
the 1934 program. The first, to be disbursed before
October 1st, after proof of com])liance has been checked,
will be at the same rate as first payments for 1933. The
rate of the second payment, based on the value of the
1934 crop, will vary according to the ()i)tion chosen by
producers as to amount of reduction.

Producers desiring to take advantage of the new
options offered in the rider, are asked to file the exe-
cuted rider, or contract and rider if they have not pre-
viously been under contract, with the district tobacco
agent before May 1st. County agents and local com-
mitteemen have contracts available for producers who
have not yet signed.

To date, growers who operated under adjustment
contracts during the 1933 season have received all but

S

^400,000 of the approximate $2,000,000 to be disbursed
in payments provided in the contracts. Less than 4000
growers have yet to receive their final 1933 payments,
which are based on the market value of the 1933 crop.
Those farmers who have not sold their tobacco will
receive payments on the basis of an appraisal of the
value of their crop, provided application for appraisal
is made prior to lilay 1st.

PRAISE FOR FRANK TRUFAX

S A CLIMAX to his interesting article, *' Sales

Letters vs. Pep Talks,'- in tin* A])ril 5th issue

IJ of Printer.^' Ink, Robert W. Palmer has this to

say about the famous "Frank Trufax" letters

sent out by A. Jos. Newman, vice-])resident and general

sales nu\nager of Bayuk Cigars, Inc. "They are a sort

of institution, for they have been going out for years.

" 'We honestly believe,' says Mr. Newman, *our
salesmen (and our jobl)ers' salesmen, to whom they go)
find them just as heli)ful today as ever — w^e get razzed
enough if we do not send them out I'cgularly.'

"The Bayuk letters are inspirational in character
— more so than most companies these days would care
to use. But tliey have been going out for so long and
Frank Trufax has ])een giving such downright good
advice all these vears that thev are undoubtedlv on the
right track."

Mr. Palmer reprints an example of a Trufax letter.

"Mr. Newman," he continues, "sums up the case
for sales letters and bulletins very well :

" *I do not think any kind of letter hits home with
the salesman who cannot make a living out of his job.
I can't ask a num to run a long race on an empty stom-
ach— neither can a letter be written to a salesman that
will inspire him to make money out of his job if there
is just no money in the job. , , . The letter must im-
part some knowledge or awaken a desire to obtain some

knowledire bv the salesman.

We continue to use

sales letters and we believe they are as beneficial today
(if not more so) as during any j)revious period.' "

"COOLING SYSTEM" PIPE

The Buttner ])ipe with "cooling system" has re-
centlv been introduced to the trade. The outer bowl of

*

this pipe is made of Bakelite molded. It is fitted with
an abs()r])ent ceramic tilter, which surrounds the inner
bowl, sucks in all the heat, moisture and irritating
toxins. The filter can be burnt otT when it has become
discolored, by placing it on red-hot embers. It will
then be snow white and ready for use again. The pipe
is of English manufaeture, and is being sold in this
country by the Buttner l*ipe Corporation of America,
of New York City.

NATL. SALESMEN'S ASS'N

The executive eonnnittee of the National Board
of Tobacco Salesmen's Associations will hold its regu-
lar quarterly meeting at the office of President Abe
Brown, 408 Market Stn»et, Newark, New Jersey, Sat-
urday, April 21, at 3 P. M. Delegates from all branches
are urged to be present.

Tht Tobacco World

HEAR THE CAMEL
CARAVAN WITH

Casa Loma Band

Delights Fans

Have you heard the hit show of the air— The Camel
Caravan? What a show! What a cast!

COLONIL STOOPNAGLi and lUDD— who have pan-
icked radio fans from coast to coast bring still greater
**thing8 and stuff" to listeners on The Camel Caravan.

CONNII lOSWiU'S vibrant... vivid... appealing con- \
trallo voice will thrill you. ..with the beautiful songs
of the past...and the pleasing, lilting melodies of the
current **hit'' tunes.

CASA lOMA 0«CHI$TtA - recently voted by fans
throughout the country as one of America's most
popular bands, continues to charm listeners with its
smooth, unusual rhythm and personality music.

So listen for the strains of the Casa Loma theme
song, **Smoke Rings," light up a Camel, and hop
aboard The Camel Caravan for 30 minutes of un-
alloyed enjoyment!

■ ».■■ K^'T TBe«I«y -nd Tliur.d«r ■! 10 P.M., E.S.T.-9 P.M., C.S.T.-
lUNE IN! 8 P.M., II.S.T.-7 P.M., PAT. •••r WABC^«l«»bU Network.

ABOVE YOU SEI

an exclusive portrait of
Colonel Lemuel Q.
Stoopnagle and Budd,
relayed to this publica-
tion by thought waval

\

GLAMOROUS CONNIE

At the left is little Connie
Eloswell. ..whose lovely
deep contralto voice has
made millions of radio
friends for heri

Copyright. 1934.
B. J. RcyriulUs Tobacco Computjr

April 15, 1934

News From Congress

_ -AND

Federal
Departments

From our ^Vashingtoh B^jreau 622Albce Buiioing

MEXDMEXT of tho tax law to prevent evasion
of the full cigarette tax by '*long" ciij:areties
was api)roved b}' the Senate April 4th, when
an amendment submitted by the finance com-
mittee was accepted providing: for imposition of the
tax by length where cigarettes are moii^ than (JVj inches
long/

Plaving been added by the Senate, it will be neces-
sary for the House of Representatives to ])ass on the
provision but no difficulty is anticipated in securing
House approval.

Under the tax provision as written by the Senate,
the levy on cigarettes weighing not more than three
pounds per lOUU remains at $o per KHH), and the tax
on cigarettes weighing more than three j)ounds re-
mains at $7.20 with the following proviso: "except
that if more than tiVi' inches in length they shall be
taxable at the rate provided in the preceding i)ara-
graph ($3 per 1000), counting each 2% inches (or
fraction thereof) of the length of each as one cigar-
ette.-'

Ct3 Cj3 Ct3

EARIXG the end of its task of codifying the
industries of the count rv, the Xational Reeov-

• -

ery Administration is being reorganized with
a view to its transformation into a code-
enforcing organization.

Under a new set-up worked out by Administrator
Hugh 8. Johnson, the administration of codes will be
divided among three divisions, of compliance, enforce-
ment and code authority procedure. Sinndtaneously,
the legal division will be enlarged in anticipation of the
institution of numerous court cases to enforce observa-
tion of codes and ])rosecute violators.

The change in operations of the administration
will be marked by the establishment of new policy
boards for labor, trade ])ractices and code authorities,
the membership of which will include re])resentative8
of the labor, industrial and consumer advisory boards
and the planning and research and legal divisions.
These boards will pass on such problems as may arise
under codes with a view to developing uniform policies
for general application.

At the same time, labor and consumer adviserH
will be appointed for the Government members of all
code authorities and all industries wliich do not now
have such agencies will be required to create indus-
trial relations committx?es or boards for the adjust-
ment of labor complaints and disputes.

The labor and consumer advisers to the adminis-
tration members of the code authorities will have no
vote and will attend meetings only on invitation ; they

will, however, have free access to the minutes of all
meetings and the right to appear before code authori-
ties to make statements on specific subjects.

The ])roposed industrial relations bodies are de-
signed to carry out the administration's plan for en-
forcement of compliance and settlement of dis])utes
by industry itself. The administration member of the
code authority will be a member of such board, without
vote.

Ct] Cj3 Ct]

LLMIXATIOX of deception in the sale of ** fac-
tory throw-outs" has been agreed to by
twenty-four cigar nuniufacturers signing
stipulations with the Federal Trade Commis-
sion, it was announced by the commission April 7th.
The stipulations havinir been negotiated before the
adoption of the conunission's new policy of ])ublicity
in such cases, the names of the companies involved
were not revealed.

It was explained by the commission that cboap-
grade cigars manufactured regularly for the two-for-
a-nickel trade were sold as *' factory throw-outs,'*
which implied they were high-grade cigars sold at low
prices because of minor imperfections.

Companies making only one line of cigars, to be
sold regularly at low ])rices, were found to be advertis-
ing them as throw-outs, so as to indicate erroneously
that the price had been reduced. One factory was
found to be manufacturing about 10,(H)0 "throw-outs**
a dav.

CJ3 Cj3 Ct)

hlXAL decision as to whether the licensing pro-
visions of the Xational Recovery Act are to be
extended for another year will be made by
President Roosevelt in the near future.
Although the licensing power has never been in-
voked, the President is rej)resented as feeling that it is
a powerful weapon which should be retained in the law.
Unless Congress takes action to ])erpetuate them, Jiow-
(vrr, the licensing i)rovisions of the act will exi)ire in
June.

Recovery Administrator Hugh S. Johnson and his
advisers favor letting the licensing provisions die
ratlicr than to oj)en tlie recovery act for amendment,
fearing that Congress would not be content to pass
upon that one feature only but would insist upon broad
changes in other sections of tho law.

However, it was said at the recovery administra-
tion, General Johnson will make no recommendations

garettes

There are 6 types
of home-grown tobaccos
that are best for cigarettes

Bright tobaccos

U. S. Types 11, 12, 13, 14-
produced in Virginia, North and
South Carolina, and parts of
Georgia, Florida and Alabama.

BURLET TOBACCO

U. S. Type 31 -produced in
Kentucky.

Maryland tobacco

U. S. Type 32 -produced in
Southern Maryland.

These are the kinds of home-
grown tobaccos used for mak-
ing Chesterfield Cigarettes.

Then Chesterfield adds aro-
matic Turkish tobacco to give
just the right seasoning or spice.

Chesterfield ages these
tobaccos for 30 months
^2% years — to make
sure that they are milder
and taste better.

Tobacco being iold at auction
on a Southern markiL

the ctaareffe Ihati milder
tne CiMreUe tnat

TASTES BETTER

C^hesterfi

® 19M. LiGCBTT & Mybu Tobac<» Co.

(Continued on Page 12)

Th€ Tobacco World

^prU IS, 1934

it

News from Congress

(Coniiuned from Page 10)

one wav or tlie oilier but will leave the decision entirely
to the President.

Cfj Ct3 C?3

OSSIBLE niin of nianiit'acturors who have in-
creased their production under the i)rotection
of tarilT duties or quarantine orders is seen
bv Senator Metcalf of Khode Island in the
pending bill giving the l*rcsident full control of the
tariff.

Attacking the measure on the floor of the Senate,
]\Ir. ]\Ietcalf declared the bill to be a long step toward
*'a complete abdication of lei::islative ])owers to the
Executive," ])ointing out that under it not only may
the President raise and lower duties at will but also
nuiy remove com])letely all excise taxes, processing
taxes and restrictions which have for their purjmse the
rci-ulation of imports.

*'Under this bill," he told the Senate, *'the Presi-
dent of the United States can, by sim])le proclamation,
increase the tarill' by oO ])er cent, ov lower it by 50 ])er
cent. He can, by a single stroke of his pen, eliminate
excise taxes levied bv the Uonufress of the United
States. He can remove restiictio?is on the im])ortation
of diseased ])lants and animals; he can waive embar-
goes on agricultural i)lanls which, foi' vaiicnis reasons,
might l)e barred from the United States.

**If ever a lull was introduced in Congress carry-
ing such a drastic abdication of the ]K)wers of (Con-
gress, I should like to know of it. 1 have always be-
lieved that the tarilT sh(»uld be flexible. Uonditions
mav arise where the raisimr or lowering of a dutv
might become advisable, but the exercise of such
powders should take place only after a bi])artisan fact-
finding body has carjL'fully studied the need for specific
changes in tariff rates.

"This act," the Senator asserted, ** places in the
hands of the President the power to auction off to for-
eign countries anv American industry which is in anv
manner dependent ui)on a taritT for its existence. He
can say to any foreign country: 'Here is an industry
which I would like to get rid of. 'NMiat will you bid for
it?' How can we consent to such dictatorship? AVhy,
Soviet Russia could fpiite easily use our law books
as textbooks on radical craftmanship. "

11-INCH RULING REVOKED

EURETARY of the Treasury Morgenthau has
revoked a ruling of the Bureau of Internal
Revenue permitting the Axton-Fisher Tobacco
Co. to ])lace on the market the Head Play cig-
arette, Avhich measures eleven inches long and of which
five cigarettes arc "ontained in each package. The cig-
arettes may l)e cut up into twenty cigarettes. The com-
pany has been advised that it will l)e given an oppor-
tunity before the effective date for the revocation to
dispose of materials for this tyi)e of cigarette.

^Mien the Axton-Fisher Tobacco Co. decided in
December to place this cigarette on the market, it first
obtained the approval of the Internal Revenue Bureau.
The Secretary of the Treasury has ruled in revoking

19

this approval that packing cigarettes in this manner
results in an evasion of the Revenue Act.

The eleven-inch cigarettes are manufactured to
retail at 8 cents per package. Col. AVood F. Axton,
]n'esident of the company, said that a survey had been
made which showed that 67 ])er cent, of the purchasers
of this cigarette were persons who formerly rolled their
own, using tobacco on which a revenue of only 18 cents
per j30und was paid, whereas in the case of Head Play
cigarettes the Government derived a revenue of $7.20
per thousand.

The ruling said that the long cigarettes, which are
"capable of being divided into four parts containing
in all twenty cigarettes of standard size should not hav(*
been ])laced in a class where the tax per package ^vas
only 3.r) cents, com]^ared to the tax of 6 cents placed
on standard packs of twenty."

EQUALIZING PAYMENT REQUESTS

O OBTATX ])rice-e(pializing payments offered
under the Agricultural Adjustment Adminis-
tration's ])rogram for flue-cured tobacco,
growers who have signed tlie adjustment con-
tracts were recpiired to file with County Extension
agents their reipie^ts for the forms on which to render
ccrtifled reports of their tobacco sales, before March
^ilst. They also had to flle theii- ai)i)lications for the
e<pudization jmyments before that date.

The })rice-e(p]alizing })ayments are l2() per cent, on
that j)ortion of the net sales value of the VXy,\ crop
sold before Septend)er 25th, and 10 })er cent, of tin*
net sales value of such tobacco sold after Septend>er
2r)tli and before the nuirked increase in ])rice which
resulted from the sign-uj) and flue-cured marketing
agreement. The purpose of tiiesc ])ayments is to com-
]>ensate, insofar as ])Ossible, ])roducers who sold their
crop before imi>rovement in j)rices.

Since I)ecend)er 10th, cojjies of the record of suc]<.
sales, taken from warehouse records and showing the
sales of each grower during the ])eriod in question,
have been assend)led in the states mentioned. To date,
more than r)0,000 j)ro(lucers have been suj)plied with
these records.

RELIEF FOR DISTRESED CO.'S

OTIX(i to make a favorable report on legisla-
tion alrea<ly passed l)y the House of Rcpre
sentatives, the Senate judiciary c-onnnittef
last month brought a step nearer the anu'nd-
ment of the bankruptcy law to ])rovide relief for dis-
tressed corporations, lender the measure, corjjora
tions unable to meet their debts are to be granted tlu*
same privileges as have already been extended to in
dividual business men, farmers and railroads by legis
lation enacted last session.

Based on the theory that i)lacing corporations in
bankruptcy proceedings usually resulted in closing
down the business, with loss to creditors an<l stock-
holders and increased unemployment, the bill provides
that embarrassed corporations may flle ])etitions with
bankruptcy courts and reorganize, scaling down the in
terests of creditors and stockholders to a }»oint whert
the company has a chance to i)ull through.

As a protection for stockholders and creditors,
however, it is ])rovided that no plan of reorganization
shall be confirmed by the bankruptcy court unless two
thirds of each class of creditors and a majority of the
stockholders give their approval in writing.

Tht Tobacco World

Better conditions are reflecting
themselves in a bigger demand
for quality cigars. All through
the depression the makers of
El Product© have fought the
battle for quality merchandise.
Display quality cigars — talk
quality cigars — offer quality
cigars — and count on El
Producto to back your judg-
ment on quality every time.

ir

aB«r*cicAKCo.,iKC.,ruiiJL,rA.

EL PRODUaO

for real enjoyment '\r\ cents

X^^ AND UP

Essential Provisions of Cigar Code

{Continued

I'acturers, memhers of the Associated Cigar Manufac-
turers and Leaf Tohacco Dealers, tw^o additional manu-
facturers, one hand and one machine, who are non-
memhers of the Associatiou, one memher appointed by
the Labor Advisory Board of the XRA and four addi-
tional members who may be appointed by the Secretary
of Agriculture and the Tobacco Administrator.

Sales by Manufacturers — A manufacturer may
estjd)lish the retail price of his cigars, which must be
filed with the Code authority, with his credit terms and
discounts. He mav allow the following discounts: To
retailers other than chain stores, 20 to 28 per cent. To
accredited jobl)ers, an additional discount of 8 to 14
per cent. To service job])ers, a discount equal to that
Kiven retailers ])lus (>5 per cent, of the discount to
accredited jobbers. Where the manufacturer has no
accredited joliber he may allow a service jobber the
retail discount plus 10 per cent. Drop shipments of not
less than 200t) A, R, C, and D or 1000 Class E cigars
arc jjermissible, where the accredited jobber agrees,
with a 5 per cent, discount to the drop shipment buyer
above the retailer discount to be allowed by the jobber
(»r manufacturer, whichever shall make the billing. A
service credit may l)e allowed the accredited jobber on
such drop shipments, provided the total discounts do
not exceed the discount provided for accredited job-
bers, plus the retailer discount. Chain stores may re-
ceive the same discounts as accredited jobbers. On all
transactions described above, the manufacturer may

AprU IS, 1934

from Page 4)

allow an additional discount of 2 per cent, for cash.
Each manufacturer must maintain uniform discounts
as regards the various classes of buyers enumerated
above, but the service credits on drop shipments may
vary in each individual case.

Sales by Jobbers to Sub-Jobbers — Jobbers may
allow sul)-jobbers 50 per cent, of the established dis-
count plus 2 per cent, for cash. P'ach jobber and sub-
jobber must allow the retailer his full discount, ranging
from 20 to 28 per cent, plus a 2 per cent, cash discount.
A jobber selling a chain store organization may allow
the same discount as the manufacturer does.

Sales by Retailers — The retailer may not allow any
rebate or discount of any sort except that a 5 per cent,
discount may be allowed upon sales in multiples of ten,
of 8 per cent, upon sales of boxes of 25 or more. No
discount may be allowed upon cigars selling at less than
5 cents. Where the manufacturer specifies a discount
of less than 8 per cent, upon box sales, his specification
shall govern. Wliere a State imposes a tax on cigars,
the full amount of the tax shall be added to the mini-
mum prices at which cigars may be sold.

Free deals, false advertising, deceptive branding
are forbidden. Jobbers must be protected in their
agreed territories. Damaged and discontinued lines of
merchandise may be sold at less than the prescribed
prices, but must be advertised and marked as such,
with a strip label placed across the inside label stating
the reason.

IS

HIbADEIi

MIA.

BAYUK BOWLERS RUNNERS-UP

GOOD CIGAR is not the only product of the
world's largest cigar factory, as was evidenced
in Peoria, 111., on April 8th, when the Bayuk
Phillies bowling team finished second among
the Quaker City teams competing in the thirty-fourth
annual American Bowling Congress championships.
They scored 2678 points in their three games. The
members of the team are AV. Cameron, E. M. Hirst,
S. Munzer, F. Bell and J. Appel.

George C. Runyan Tobacco Co., Sturgis, Mich.,
assisted by C. M. Brower, Bayuk salesman, is making
nice headway in a drive for greater sales and distribu-
tion of Bayuk brands in their territory.

Morris Kmg Cigar Co., Bay City, Mich., is pro-
moting an effective campaign on Phillies and other
Bayxik products in that territory, along with George B.
Hibbard, salesman for Bayuk.

Peter C. Beck' Co., Racine, Wis., has joined the
Bayuk distributing family and is already doing splen-
did work on the brands in that sector.

Kielson Cigar Co. has been entrusted with the dis-
tribution and sale of Bayuk Phillies in the Cincinnati
area.

Met Mr. Snyder, El Producto representative, down
town early in the week selling El Productos (and I
mean selling). He reports a very apparent increase in
demand for this popular brand, at ten cents and up,
which is an unmistakable sign of better times.

We are glad to welcome I. B. White, manager of
the cigar department of John Wagner & Sons, back at
headquarters this week after an absence of two weeks.
Mr. White was home nursing a serious infection by the
good old Streptococcic germ, but his strong constitu-
tion easily won the battle.

Grabosky Bros., Inc., are now comfortably in-
stalled in their new and larger quarters at 11-13 North
Second Street, and production on the Royalist brand
is again able to keep up with the demand for a time.
Indications, however, point to the fact that these larger
quarters will soon be taxed to their capacity.

^4

Trade Notes

No question about it, the Cigar Business Is Better.

N. E. Oliver, vice-president of Philip Morris & Co.,
Ltd., was in town last week and reports a tremendous
increase on his brand during the past few months.

Ashton & Lones have established a retail and man-
ufacturing stand at 937 Huntingdon Street, featuring
the Trotter In, and their brand is being well received.

Jacoby & Agliano are among the newcomers in the
field at 26 North Sixth Street, having moved recently
from 738 Arch Street.

George Stocking, of Arango y Arango, was a vis-
itor last week, and reports Don Sebastian making splen-
did advances along with the business recovery move-
ment which is now so generally in evidence.

Harvey Hetrick has moved his retail and manufac-
turing stand from Market Street below Second to 13
North Seventh Street, where he is trading under the
H & G Cigar Co., and doing a nice business.

A. Bazarte, who is located at Franklin and Poplar
Streets, is doing a fine business on his brands, and has
been forced to work night and day recently to supply
the demand for his brand.

Among the new firms registered last week was the
O. K. Cigar Store, at 4262 Frankford Avenue, operate*^
by Adam Dogas, and Fotios Dogan, of the same
address.

John Flanigan, of the M. J. Dalton stand at 617
Chestnut Street, has been featuring an attractive and
interesting window display on Bock Panatelas, which
has been keeping this brand moving across his counter
in lively fashion. This display is being featured also
in all Yahn & McDonnell stands throughout the city
this week with gratifying results.

Thg Tobacco WoHd

SnokingTobacco

f OR

PIPEanoOAARETTES

H'tis^'-Mtfirs

MAYBE it*s the way we mildly mentholate KOOLS, maybe it's
the cork tips, maybe it's the extra-choice blending of fine
tobaccos, maybe it's the advertising, but KOOLS are certainly
going UP. . . UP. . . UP. . . IN POPULARITY. Every month since
they were introduced, sales have shown a most spectacular climb.
Stock KOOLS. There's a nice, quick, steady profit in them.

BROWN & WILLIAMSON TOBACCO CORP., LOUISVILLE, KENTUCKY

Brown bk Williamson products have been designed to bring you the most profit in all lines and
prices. New products are added to fit the times. Are you getting your share of profit from these live,
selling items: EHal Smoking Tobacco, Sir Walter Raleigh Smokmg Tobacco, Raleigh Cigarettes,
Wings Cigarettes. Golden Grain Tobacco.Target Cigarette Tobacco and Bugler Cigarette Tobacco.

TlM CaN •! tiM Tlwmy S<

^Pril /5, /pj4

1$

ARGUMENT FOR TAX REDUCTION

(Continued from Page 6)

How iiiaiiv new coiisiniiors of cinarottos would be
created by this ]»o|»ular i)iiee is beyond, or at least in-
capable of, estimation. Keonoinie pressure drives
some to roll-your-own ; it drives otiiers to the expedi-
ent of eiirtaihnent or elimination. The cigarette
smokers wlio are added anew, and not by conversion
from roll-your-own, and the increased eonsum])tion by
the ciii'arette smokers wh(» now stint in their smoking'
for econ(>my's sake, constitute an additional market
for farmers' tobacco, and of the high grades that are
used in cigarettes. One who realizes tlie ]»ulling ])ower
of the 10-cent ])rice as anyone in the trade realizes it,
will believe that with that 10-cent ])riee for standard
cigarettes tliere would be a quick increase of more than
12,000,1)00,(100 cigarettes consumed l)y new smokers or
by increased consumi^tion ])y present smokers. This
means— adding to the :kS,(H)o',000,000 the 12,000,000,0(M)
— 50,000,000,000 more cigarettes, ]>arTly in reduction
cf roll-your-own cigarette eonsumption and ])art]y in
new consum])tion. Cigarettes are ])rinci])ally of do-
mestic tobacco. AVith a duty of X^ cents ])er pound
on Turkish tol)acco, to sav nothing of the cost of the

' ft *■ ^

tobacco itself, the manufacturers of standard cigar-
ettes put into their eigarettes only such a i)ioj)ortion
of Turkish tobacco as will bring to their cigarettes the
greatest ])ossible ])oj)ularity, and this they ought to
continue to put in for the l)enefit of the domestic leaf
growers themselves. The maximum weight of cigar-
ettes in order to carry a $3 ]ier thousan<l tax, is three
pounds })er thousand, and eomi^etition brings an ap-
proximation to that maximum. The to])acco as bought
from the farmer loses weiirht bv stennning and bv
drying, so, according to the best estimate I can gel^
there are a])proximately, or very nearly, three ])Ounds,
farmer's weight, domestic tobacco in every thousand
cigarettes, or, on that basis, for 50,000,000,000 cigar-
ettes ir)0,000,000 ]x)unds of tobacco, ])artly, it is true, a
demand for higher grades of tobacco taken fiom the
demand tor lower grades, but partly a new demand.

I want to deal with this connnittee not only truth-
fullv in mv statement of faets, ]>ut franklv in mv ex-
pression of ojunion, for whatever that opinion may be
worth. An addition to the domestic <'onsumi)tio]i of
domestic grown tol)aeeo of more tlian 1. ')(>,( ^00, 000
pounds, woidd be, in my judgment, a great boon to
the tobacco farmers, l^ut, even so, farmers are likely
to be disappointed in the ultimate outeome unless two
things, ditfering in relative imjmrtance, occur. One is
the maintenance and extension of foreiirn markets for
our leaf, because in many ty|)es ex])ort demands are
important — full 40 ]»er cent, of our total leaf ])roduc-
tion is normally exported. The other, an<l im])era-
tivelv necessarv, is the establishment, bv co-oi)eration

ft • ' ^ • I

among farmers, spontaneously or by governmental
persuasion and aid, of something a])proaching a corre-
spondence and co-ordination V)etween the su])ply of leaf
tobacco and the demand for it, domestic and for export.
The working out of such coj'ies])ondence and co-ordi-
nation between su]iply and demand has its heart-break-
ing incidents at the best. When the farmer, whose life
and family and l)aiiis and ecpiipment are all pitched
on a ten-acre ]»roduction, is brought to cut his acreage
to five, hi^ adjustments are difiicult. It is im]»ossible
to overemphasize the relief that would be given in re-
ducing the number and the severity of tliese readjust-
ments if Congress, by its revision of the tax structure,

i6

can add 150,000,000 pounds of leaf to the domestic de-
mand.

I now speak of the Government and its revenues.
There is no blinking the fact that on i)aper, and assum-
ing no increase nor change in consumption of tobacco
jn'oducts as the result of sucli reduction, our sugges-
tion of tax reduction on tobacco and cigarettes would
involve a loss of revenue to the government, based on
the 1933 ligures, of JJ^15(;,000,000.' What would be the
secondary effect? Koll-your-own cigarettes are loosely
rolled and, as I have told vou, consume less tobacco
than is consumed in the ready-nuide cigarettes. A
manufacturer of a tobacco used in roll-vour-own cigar-
ettes has advertised, and I have no doubt truthfully,
that a pound of his tobacco will nuike over (iOO cigar-
ettes. I have been and am conservative, though, and
again estinuite that the roll-vour-own cigarettes con-
sume two jiounds ]»er tliousand. It seems to me, as I
have said, that the elTect of this change of tax will be
very quickly to convert 38,000,000,00() at i)resent roll-
your-own cigarettes into ready-made cigarettes. In the
form of roll-your-own cigarettes there is a consuniption
of 76,000,000 ])ounds of tobacco in 38,000,000,000 cigar-
ettes. This tol)acco at 18 cents ])er ])ound pavs a reve-
nue of $13,680,000; but these 38,000,000,000 cigarettes
on the basis of $1.80 jkm* thousand, the tax we suggest,
would bring a revenue of $68,400,000, or an increase of
$54,720,000. Then let us add the 12,000,000,000 of new
cigarette consumers not taken from roll-your-own, at
$1.80 per thousand, and vou have a further addition of
$21,600,000, or a total of $76,320,000, which is well on
the way to a restoration of governmental revenue to
what it would have been if the reduction had not oc-
curred. All of this is a (piick effect, and it says nothing
of any increased consum])tion of tobacco in forms
other than cigarettes to make up the increase in reve-
nue from the tobacco tax reduction, although that to-
l)acco tax reduction Avas taken into account in arriving
at the amount of innnediate loss of revenue. Let me
state mv conviction concretelv: A little more than
two years ago T had the privilege of ap]iearing before
the Ways and Means Connnittee to oppose a suggested
increase in the already too high taxes on tobacco and
cigarettes. Not because of anything T said, but be-
cause of what others said, and, above all, because of
the manifest unwisdrmi of such increase, no increase
was made. If at that time T had had the courage and
the vision to urge uv)on you the reduction of the rates
that I now urge, and if the Congress had had the cour-
age and vision to nuike that reduction, T believe the
revenue return to the government, possible in the year
1934, and certainly in the year 1935, would be just as
large as it will be under present tax rates, if these
present rates continue. T come back, then, to the state-
ment which T nuule earlier, that the loss of revenue
involved in the ado])tion of the suggestion that we make
would be tem])orary so as to make the reduction in fact,
though not in nam(% an emergency measure.

There is another large class of our peo])le whose
interests I shall not discuss at substaidial lenirth. T
am l)rief, not because T am not interested, but because
the storv is shortlv told, and it is easv for such discus
sion to degenerate into the maudlin and the insincere.
T mean the consumers. The time has passed, it seems
to me, when a thing is to ])e deemed immoral only be-
cause it is a j)leasure. and when ]>hysical advantatre or
disadvantage is by intelligent men, even physicians,
thought to l)e measured only by chemical reaction or
the number of calories consumed. Tf the smokers of

Th€ Tobacco World

cigarettes pay, as they would pay under our sugges-
tion, on a package of twenty cigarettes, a 10-cent pur-
chase, and as for most of them a day's supply, over
;]'/ii-cent tax, or, a year's consumption, a tax of over
$11, 1 think they wdl be paying enough. If tlie con-
dinners of tobacco and snutf pay, not (^uite so nmch
on average consumption as tlie cigarette consumers,
l>ut the substantial amounts of tax they would pay
under our suggestion, they will be paying enough, i^'or
the life of me I do not see the difference between a
so-called luxury and a so-called necessity so far as
t-onsnmer tax is concerned, if both of them enter into
liie living expenses of the ordinary man. It is jjer-
fectly certain that the levy of an excessive tax on a
man's smoking or chewing either does add to his living
expenses, or does induce him to curtail or abandon an
indulgence that is pleasant and comforting, and is not
of hurt to his spiritual or physical welfare.

There is one important phase of this situation
that bears especially on the prices farmers are to get
tor their leaf tobacco, which may, i)erhaps, be dis-
cussed more clearly in connection with the contention
that has been made for a ditferential in the tax on
cigarettes based upon ditferences in their customary
consumer price. While I shall speak frankly and
earnestly in opposition to that ditferential, that dis-
cussion will bear also on just how tlie rate of tax re-
duction we suggest tits into a scheme of real farm re-
lief. I have spoken of the appearance in January of
representatives of just two of all the manufacturers
of tobacco or its iiroducts. They suggested the wis-
dom of your making a ditTerential in the tax rates
levied on cigarettes so tiiat cigarettes selling by the
manufacturer at a net price r)f $4.10 or less and retail-
ing at 10 cents or less should bear a tax of $2.70 ])er
thousand; those with a net manufacturer's price of
more than $4.10 but not more than $6 with a retail
price of more than 10 cents and not more than 15 cents
a tax of $3 per thousand, the present rate; and those
cigarettes with a manufacturer's net selling price of
over $6 and i)resuinably a retail price of more than 15
cents, $3.30.

We think their suggestion is unsound from the
point of view of the tol)acco industry, and we think
it is especially unsound from the point of view of the
tobacco growers. We think that for the cigarette
husiness of this country to be put out on a 10-cent con-
sumer i)rice, with any tax sucli as $3 or $2.70, or in-
deed with any lax higher than $1.80, is incoinpatible
with a fair juice for leaf tobacco. To our minds, the
projmsal to \n\i this cheap cigarette into the king's
cliair — to make it the cigarette that tits into our cur-
i-eiicv as none other does — without complete and care-
ful readjustment of the entire tax rate structure, car-
lies more menace to the tobacco growers of this coun-
trv than has ever ludore been seriously proposed to a

ft

legislative body.

The forcfioltui i< n transcr\f>i <>/ a statement before a Suh-Cnmmitlec
of the House Ways and Means Comtnittee by Junius Parker, li'ho
represented the folliPuHnii manufacturers of tobacco, snuff and cu/arettes:
.Imerican Snuff Company. The .Imerhan Tobacco Comfniny. liendixen
Tobacco Company. Benson & Ilednes, The Hl-uh Ifros. Tobacco Com-
pany, liy field Snuff Company. Continental .> Company. Critnson
Coach Incorporated. De \obili Cif/ar Company, Da'Ad I'orry Tobacco
Company. Ceonie il'. llelme Company, Larus .'- Brother Company. Liij-
ih-it .'- Mxers Tobacco Cotnpany. V. I.orillard Company. Thilip ^forris &
Co., Ltd.. Venn Tobacco Company, R. J. Reynolds Tobaeco Company.
R\an Hampton Tobacco Company. Scott Tobacco Company. Scotten-
Jiillon Companv. Taylor Brothers Tobacco Company and Cnited States
Tobacco Cotnpany.

April 15, W34

ILLIAN RUSSELL

2
for

5c

U. S. BOND

2 /%

CIGARS

CIGAR

P. LORILLARD GO'S
Quality

2 '»■■ ^^

Cigars

Meeting the public* s demand
for quality cigars
moderately priced

NLW

CURRENCY

CIGARS

2

for

5c

*Our Other Popular 2 for 5*^ Cigars
JAMES G. BLAINE • • POSTMASTER
LA FRAOSA • SARONA • WAR EAGLE

TOBACCO TEADE ORGANIZATIONS

TOBACCO MEKCHANTS ASSOCIATION
OF UNITED STATES

<^^

N. Y.

N
X

JESSE A. BLOCn. WhcelitiR. W. Va.
flLILS LICHTENSTEIN. New York.
WILLIAM BEST. New York. N. Y. ..
MAJ. (JEORGE W. HILL. New York
(;E0RGE il HLMMELL. New York

IL IL SH ELTON. WashinRton. D. ('

WILLIAM T. REED. Richmond. Va

HARVEY L. HIRST, Philadelphia. Pa.

ASA LEMLEIN". New York. N. Y

CHARLES DUSHKIND. New York. N. Y.
Headtiuarters, 341 Madison

Y.
Y.

Ave

President

, Vice-President

..Chairman Executive Committee

Vice-President

Vice-President

Vice-President

Vice-President

Vice- President

, Treasurer

isel and Managing Director
York City

.Coun«
New

RETAIL TOBACCO DEALERS OF AMERICA. INC.

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y President

( LIFFORD N. DAWSON, Buffalo. N. Y Executive Vice-President

JAMES C. THOMPSON. Chicago. Ill Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

lOHN H. DCYS. New York City
MILTON RANCK, I^ncaster, Pa.
D. EMIL KLEIN. New York City
LEE SAMUELS. New York City

.President
. . . First Vice-President
Second Vice-President
. . . .Secretary-Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

President

First Vice-President

Second Vice-President

Secretary

ABE BROWN. 180 Grumman Ave., Newark, N. J

ALBERT FREEMAN. New York. N. Y

IRVEN M. MOSS, Trenton, N. J

A. STERNBERG, Newark, N. J

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE • •■• President

SAMUEL MAGID, 2iJ01 N. Mervine St.. Philadelphia, Pa Secretary

.President
.Secretary
.Treasurer

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS. INC.

E ASBURY DAVIS, Baltimore, Md -^

JOSEPH KOLODNY. 200 Fifth Ave.. New York. N. \

GEO. B. SCRAMBLING, Cleveland, Ohio

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

TOITN F BROWN President

IIERMAN H. YAFFE,.K>1 Fox Building, Philadelphia, Pa Secretary

MAY 1, 1934

Establiihed 1886

"BEST OF THE BEST"

^^^±^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and K«p West, Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco meUow and amooth in charactar
and impart a most palatable flavor

FUYORS FOR SMOKING md CHEWING TOBACCO

Write for Llat of Flavors for Special Brands
BKTUN. AIOMATIZEI. BOX FLAVOKS. PASTE SWEETENEU

FRIES & BRO., 92 Reade Street. Ne%y York

.:v»A"A«A".w,'y«/J'A»A«A»^' • • • /^•>'"«/"V»>!'LX»A"A»A':vfy:ix»y:^tyt-kf>"v»y::,v»/

Classified Column

The rate foi this column is three cents (3c.) s word, with
a minimum charge of seventy-five cents (75c.) payabls
strictly in advance.

«ir«vir«vir«rtr«xir78riri«xinrsrir)«xirrix:rn^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and aUo
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, JtVlrokTa^

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

Registration,

Search,

Transfer,

Duplicate Certificate,

(see Note A),
(see Note B),

$5.00
1.00
2.00
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.

REGISTRATIONS

PERKASIE:— 46,308. For cigars. April 6, 1934. H. E. Snyder
Cigar Co.. Perkasie. Pa.

BLACK AND WHITE:— 46,309. For cigarettes. April 6. 1934.
National Cigar Stands Co., New York. N. Y. (This certificate is
issued upon presentation made to us that the trade name or trade-
mark herein specified, though apparently not heretofore registered
in any of our Affiliated Bureaus has been in use by the registrant
since April, 1917.)

TRANSFERRED REGISTRATION

SIXPENCE:— 38,472 (United Registration Bureau). For cigars,
cigarettes and tobacco. Registered December 12, 1913, by Julius
Bien Co., New York. N. Y. Transferred by Consolidated Litho.
Corp., Brooklyn, N. Y., successors to the original registrants, to
Thompson & Co., Tampa, Fla., March 20, 1934.

Brigfifs Smoking Tobacco (P. Lorillard Co.) con-
tinues to forp:e ahead, and the local distributors (Yahn
& McDonnell) have been forced to increase their stand-
ing order to keep a sufficient supply on hand to meet
the demand.

J. Freed has established a retail and manufactnr-
inj? stand at 148 North Thirteenth Street, under the
name of the New Era Cigar Co., and featuring the New
Era and El Jewel at ten cents and up, and the New Era
at two for five cents.

James Heaney, sales representative of the Ameri-
can Tobacco Company, was in town last week intro-
ducing William Anderson to the trade. Mr. Anderson
will be stationed in this territory promoting Antonio y
Cleopatra and the Bock line through Yahn & McDon-
nell local distributors.

"What a

welcome visitor

The To

BACco World

must be to wholesalers and

retailers !

"U they

are only half as

interested

in reading it as

we ourselves are, we're glad

our ad is

in it regularly" —

says an advertiser.

'n

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phila., Pa.
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION ^ J^^^ ,-,

Lima Ohio Detroit. Mich.

A Nationwide Service Wheeling, W. Va.

iiiiiniiiiiinimiiniiiiK

UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA.

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack yoi» cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember r <jr Regjrdleu of PrK«

THE BEST CIGARS

ARE rUlLfJ} IN

WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

MAY 1. 1934

No. 9

Code of Fair Competition for the
Cigar Manufacturing Industry

As Presented for N R A Consideration and Approval

T IS coiiHdoiilly hoped that the (\>(lo of Fair
Coni])otition I'or the ('*m:ar Manufacturing In-
dustry will have heen approved before tlie next
issue of The Tobacco Would is i)ublislied. In
ihe followini^ pa,i»es is detailed the form in which the
(^ode was finally ai^reed u])on, to be })resented to Gen-
eral Johnson for his consideration and ai)i)roj)riate
action. Any chan.i;es which are introduced before ap-
proval will be noted in a later issue. We suji:jj;est that
our readers ])reserve this issue, containinjjc first publi-
cation of the C^ode as submitted.

ARTICLE I.

Purposes.

To effectuate the ])olicies of Title I of the National
Industrial Recovery Act, this Code is established as a
Code of Fair Comi)etition for the Ci,<»:ar Manufacturing
Industry, and its provisions shall be the standards of
fair competition for such industry, and shall be bindin":
upon every mend)er thereof.

ARTICLE U.

Definitions.

As used in this Codo the following words and

phrases shall be defined as follows:

Section 1. The term '' I*resident" means the
President of the United States of America.

Section 2. The term "Administrator" means the
Administratoi' for Industrial Recovery.

Section 3. The term "Act" means the National
Industrial Recovery Act.

Section 4. The term "Ci^^ar Manufacturin.u: In-
dustry" means and includes the manufacturin«j: into
cii^ars of cured leaf tobacco, stenuned tobacco, ^crap,
ami or shredded filler for use in the manufacture for

sale of ci«<ars.

Section 5. The term "ciirar" nieans an<l mchides
ciirars, stogies, cheroots and little cij^^ars.

Section 0. The term "member of the industry,"
"manufacturer" and "cigar manufacturer" means
and includes without limitation any person engaged
either as ai\ employer or for his or its own account in
the Cigar Manufacturing Industry.

Section 7. The term "em])loyee" means and in-
cludes anv and all persons engaged in the industry,
however compensated, except a mend)er of the industry.

Section 8. The term "employer" means and in-
cludes any person by whom any such employee is com-
I)ensated or employed.

Section 9. The term "productive employee"
means and includes any employee working in the fac-
tory and included in the factory payroll, and governed
bv the factorv regulations.

Section 10. The term "unskilled labor" means
and includes conunon labor not requiring previous
training and excludes hand and machine cigar makers,
packers, strippers, inspectors, binders and cellophane
operators.

Section 11. The term ''watchman" means and
includes an emi)loyee who for not less than ninety (90)
percent of his working hours is engaged in watching
and guarding the premises of the establishment.

Section 12. The term "deliveryman" means and
includes an employee whose principal function is the
deliverv of merchandise, and who does not sell.

Section 13. The term "outside salesman" means
and includes any salesman who performs principally
the selling function, and who may deliver.

Section 14. The term

( i

South" means

and

in-

cludes the following states: Alabama, Arkansas, Flor-
ida, Georgia, Kentucky, Louisiana, Mississippi, North
Ccirolina, South Carolina, Tennessee, Texas and Vir-
ginia.

Section 15. The term "Accredited Cigar Jobber"
means and includes any wholesale distributor of cigars
who maintains a sales organization and has an exclu-
sive selling arrangement for a brand or brands of
cigars for which he assumes the responsibility of pro-
motion, distribution and care in a definite territory
assigned to him.

Section 16. The term ''Cigar Service Jobber"
means and includes any wholesale distributor of cigars
other than an Accredited Cigar Jobber. (A jobber may
l)e an accredited cigar jobber as to a certain brand or
brands and a cigar service jobber as to others.)

Section 17. The term "Sub-jobber" means and
includes anv person performing the functions of a
wholesale distributor of cigars, who purchases some or
all of his cigars from jobbers or jobbing establishments
of manufacturers instead of directly from manufac-

turers.

(A person may be a jobber as to certain cigars and

a sub-jobber as to others.)

The TOBACCO WORLD (ejUblUhed .881) i, P-b'jf.»'<^,'^[J^b«"pWoVl'^-^^^^^^^^^

Id B. Hankins, Secretary. Office, 236 Chestnut Street Phijadelphia Pa Issued on second-class mail matter.

fbYe*o1..y-."!hrVgrg7d13'th.Tb^Vo-^nd:sT,^^^^^^^^^

DecemStr 227 1909, at the Post Office. Philadelphia. Pa., under the Act oJ March 3, 18».

Section 18. The term "Retailor" means and in-
clndes any dealer in eiuars who sells direetly to the
eonsumer and not for pni poses of resale in any form.

Section IJ). The term ''Chain of Stores'' means
a uron]) of retail stores having- single ownei'shij) and
maintainiim one or more hona fide central distrilnitini»-
depots from which individnal units jire serviced, and
also bona fide central hnyini*, sforinii, supervi.sing- and
account inu ori»anizati()ns.

Skction 20. The term "])erson" means and in-
chuk's all individuals, firms, paiMnerships, unincor})o-
rated associations, eur])orations and other forms of
euter])risc*.

Se( TioN 21. The term "State" meaiis any State,
Territory and the District of Columbia.

Section 2'2. The term "subsidiarv" means anv
j)erson of oi- over whom a member of the industry has
either ilirectlv oi* indirect Iv actual or lei»al control,
whether bv stock (►wnershii) or bv an\' other manner.

Section 2.S. The term "afliliate" means any per-
son who has either directly or indirectly actual or lej>:al
interest in the business of a member of the industrv,

ft ~

whether throut»h stock ownership or bv anv other

*^ 1 ft ft

manner.

Section '24. The term "Association" means the
Associated Ciuar Manufacturers and Leaf Tobacco
Dealers.

Section 2.'). The term "Council" means National
Tobacco Council, Inc., a New York Corjjoration, or such
other auency as shall be desiunated for the purj)oses of
Schedule I, hereto attached, l>v the Code Authoritv
hereby established and by the Code Authorities for the
Wholesale Tobacco Tiade and the Retail Tobacco
Trade.

ARTICLE III.

Hours.

Section 1. Xo clerical, account inir or other office
em})loyees shall be ])ermitted to work in excess of forty
(40) hours in any one week or eiuht (S) hours in any
one day and no other employee shall l)e permitted to
work more than forty (40) hours in any one week,
except as follows :

(a) Kxecutive. su])ervisory, technical and ad-
ministrative enjployees, provided that they receive
re<»ulaily thirty-five dollai's (H;;i').00) per week or
more.

(b) Outside salesmen.

(c) Watchmen, provided that no watchman
shall be ])ermitted to work in excess of fifty-six
(.16) hours ])er week.

(<1) Chauffeurs and deliverymen, provided
that no sueh emi)loyee shall b<' jiermitted to work
in excess of forty-eiyht (4S) hours per week.

(e) Firemen and eiiiiineers, provided that no
such em])loyees shall l)e permitted to work in ex-
cess of forty-four (44) hours p<'r week.

(f) Shii)j)in<»: department em]»loyees, provided
that no such employee shall be ])ermitted to work
in excess of forty-four (44) hours in any one week
or ei.y:ht (S) hours in any one day unless paid at the
rate of time and one-third for all time worked in
excess thereof.

(<i:) Pioductive em])loyees durin<r two peak
seasons per year, provided that the number of
weeks and the number of hours ])er wei^k in each
season shall be determined by the Code Authority,
subject, to the ajiproval of the Administrator.

Section 2. Xo em])loyee except watchmen shall be
})einutte(l to woik more than six (6) days in any seven

(7) day i)eriod.

Section .'>. The maximum houis fixed alcove shall
not ai)i)ly to emi)l()yees on emer.i»ency repair work, jjro-
vided that any such emjjloyee woi-kin.i»' in excess of ei<>lit

(8) houi's i)er day or forty-four (44) hours ])er week
shall be compensated by at least time and one-third for
all such excess time.

Section 4. All time woiked on Sundays and le^^al
holidays, except by watchmen, eniiineers and fii*emen,
shall be compensated at the rate of time and one-third.

ARTICLE IV.

Wages.

Section 1. X"o clerical, accounting or oilier office
em|»l()yee shall be paid at a rate of less than fifteen
($ir).00) per week of forty (40) hours.

Section 2. Xo watchman shall be paid at a rate
of l«*ss than fifteen dollars (jf^lo.OO) per week of fifty-six
(56) hours.

Section .*?. Xo stri])])er shall be ])aid at a rate of
less than twenty-five cents (2r)<) ))er hour, provided,
that strii)pers that are classed are slow workers uj)
to twenty-five per cent. (2'//; ) of the total number of
such workers, need not leceive the minimum houily rate
herein specified, if (1) they are ])aid the same piece
work rate as j)aid other employees of the same class
and (2) they are paid af a rate of not less than twenty-
two and one-half cents (22' -c) per hour.

Section 4. rnskilled lai)or in the Sontli shall be
paid at a rate of not less than tweuly-live eeaU (25f )
per hour.

Section 5. X"o ])roductive em|)loyee en<ia«»ed in
tlie ])i()duction of stoi»ies or hand made ciufars to retail
at not more than two for five cents shall be ))aid less
than twenty-seven cents (27<*) per hour, and no machine
ciu:ar operator enuaued in the production of cij^ars
made to retail at not more than two foi* five cents shall
be paid less than twenty-nine cents (2I)<*) per hour.

Section (>. Xo ciuar maker in the Hand Made In-
dustry, except as jirovided in i>ara,i;rai>h .'), shall be ]>aid
at a rate of less than thirty cents i'.lO^) per hour; ex-
cept inir in the South, in which no citrar maker in the
Hand .Made Industrv shall be i)aid h'ss than twentv-
ei«i:ht cents (28c) i)er hour; provided, however, that
cijrar makers eniiaiicd in the j»roduction of ciu:ars other
than class A and H cij^ars sludl be ]m'u\ at a rate of not
less than four (4<*) i)er houi- in a<l«lition to the rate
established above.

Section 7. Xo machine operafoi- except as pro-
vided in ]»ara^raph ') shall be paid at a rat«' of less than
thirty-four c<»nts (.'Uf) per hour exccptinu: in the South,
ill which no machine ci^ar maker shall be jiaid less than
thirty-two cents (.S2(*) per hour.

Section S. Xo em]>loyee other than those for
whom s]»ecific i>rovision is made in this Article shall be
paid at a rate of less than twenty-ei^ht cents (2Sc) per

hour.

Section !>. Ciuar makers in the Hand Cii-ar Man-
ufacturinii and Stouie .Manufacturinir Industry who
are classed as slow workers, up to 2')' '( of the total
iimnber of such workers, an<l machine ciuar operators,
up to 10'; of the total number of such workers, need
not receive the minimum hourly rate herein specified,
provi<led they shall be paid the same piece rate as paid
other employees of the same class.

(('niit'nnu'il on Pacfc s)

Cigars Increased 64 Million in March

\\K following; comjiarative data of tax-])aid
products, indicated by the monthly sales of
stami)s, are issued by the Bureau. (Fi<!:ures for
March, 19,*U, are subject to revision until pub-
lished in the annual report) :
Proflifcis

— March-

Ciiirars (la rue) :

Class A Xo.

(Mass B Xo.

(Mass C Xo.

dass n Xo.

Class K Xo.

1934

306,()58,785

4,488,203

39,6r)r),908

3,082,147

279,864

1933

249,231,230

1,924,673

34,656,138

3,872,130

426,901

Total 354,164,907 290,111,072

Xo. 20,458,013 9,44(),307

Xo. 35,397,000 160,847

Xo. 9,333,113,760 7,974,030,063

.lbs. 3,825,940 2,518,475

.lbs. 27,()52,361 24,938,566

Tax-i)aid products from Puerto Rico (not included

in above statement) were as follows:

Ciuars (small)

Cii-arettes (lar*»:e) . .
Ci,L!:ai-ettes (small). .
Snuff, manufactured
Tobacco, manufact 'd

Proihicts
Ciuars (lart^e)
Class A . .
Class H ..
dass V .,

Xo.
Xo.
Xo.

— March —
7,9.?/ 1933

6,271,900 1,776,900

6,500 415,100

61,000 5,200

Total

6,339,400 5,197,200

duars (small) Xo.

Cigarettes (large) Xo.

Cigarettes (small) Xo.

Tax-])aid jiroducts from
eluded in above statement) we

Profhtf fs
Citrars (laru^e) :

(lass A Xo.

Class B Xo.

(lass C Xo.

Class E Xo.

300,0(H) 550,000

110,(MK) 30,000

513,800 96,000

the Phili])pines (not in-

re as follows :.

— March —
U)34 1933

20,201,785 10,521,750

62,227

23,400

3(K)

3,753
6,900
50

T„tal 20,287,712 10,532,453

Cigarettes (small) Xo.

Tobacco, manufact 'd.. lbs.

285,5(K)
5

38,900
7

The Tobacco World

G. H. P. SALES MEETING

The (i H. P. sales ori::anizations of Philadel])hia,
Xew York and Newark met at the headquarters Satur-
dav, April 21st, and were regaled with talks on the
current advertising campaign and optimistic luedic-
tions on the immediate future of the cigar business.
Addresses were made by Frank P. Will, executive vice--
president; H. H. Kynett, advertising counsel; and
I). A. .lenks, assistant sales manager. Among the sales
executives present were .Ia<'k Cohen and William King,
sales manauer and assistant sales manager, from Xew
York; Frank Lvnch, sales manager from Xewark; Moe
(Jordeii and A.' (i. Will, sales manager and assistant
sales manager of the Philadelphia branch.

May t, 1*^34

Comparative Statement of Internal Revenue Collections

for the Month of March

1934

$918,197.80

Sources of Pcremie
i ^lo*}! rt{

^ t j.^ CV lo ................

(Cigarettes 28,255,356.96

SnutT 688,778.59

Tobacco, chewing and

smoking 4,977,838.73

Cigarette ])apers and

tubes 84,605.82

Miscellaneous, relating to

tobacco 258.62

1933
$752,635.62
23,923,646.54
453,325.48

4,489,025.41

70,804.65

110.00

Processing" Tax Returns

Detail of collections from processing and related
taxes ])roclaimed by the Secretary of Agriculture under
authority of the Agricultural Adjustment Act (Public,
Xo. 10, Seventy-third Congress), approved May 12,
1933.

Month of Total from

March , 1934 Julif 1 , 1933
Commoditif (Fiscal Year 1934)

Tobacco (tax effective
October 1, 1933):

Processing tax . . .$2,113,479.02
Import compensat-

18,351.87

ing taxes

Floor tax, o t h e r
than retail deal-
ers

Floor tax, retail
dealers . . .

$9,712,377.21
110,526.72

• • •

2,300.88
2,101.52

1,801,462.68
239,915.55

Total, tobacco . $2,136,233.29 $11,864,282.16

March Withdrawals, 1920 to 1932

1920
1921
1922
1!)23
1924
1925

753,239,958
561,343,699
529,162,381
547,514,691
515,895,112
504,303,979

1926
1927
1928
1929
1930
1931
1932

564,224,856
528,697,564
497,904,282
491,304,798
454,765,717
440,472,410
355,382,130

BAYUK BUSINESS BITS

Harrv S. Rice, of X. Rice Cigar C^o., Pittsburgh,
accompanied bv Mrs. Rice, was a week-end visitor at
BayukV . . . H. D. Soyster, Bayuk territorial mana-
»^er for Western Pennsvlvania, visited headiiuarters to
arrange additional shipments of Phillies in his dis-
trict . . . K. F. Re(iuard, associated with the Neu-
decker Tobacco Co., Baltimore, stopped off at Bayuk 's
and reported a verv strong demand for Phillies in his
sector . . Capital Tobacco (^o., Hartford, (^onn., is
making marked headway in distribution voluine on
Bavuk products ... J. P. Oiven, ButTalo territorial
manager, calling at headcpiarters, was very enthusias-
tic over the intensive demand for Phillies m his baili-
wick.

Under Billy Penn's Hat

William P^rooinaii, of the ^fodal of Honor Cii^^ar
Co., was a visitor hero last week.

Eu«:cne Po])i)er, of Pojipor cK: Son. New York
manufacturers, was in town last week calling on the
trade.

Joe Banker and Barton Lemlein were visitors in
Pliiladelpliia last week, accompanied by their wives»
en route to points in the South.

Grabosky Bros., Inc., north Second Street, are
forgino- ahead with theii- Royalist brand, and i^^etting
their share of the increase in Class C consumi)tion.

The Don Sebastian brand, distril)uted here by
John "\Va«:ner <!v' Sons, is showing a vijiforous imi)rove-
nient in demand.

Steve E. Hertz, of D. Emil Klein Co., was in town
last week in the interest of Haddon Hall. This brand
enjoys a good demand here.

John Wagner & Sons, Dock Street, distributors,
report they have taken on the Carl T'pmann cigar for
distribution in Philadelphia territory.

Sam Adier, of Villazon & Co., dropped in on Phila-
delphia friends last week and reported a fine increase
on his brand here as well as in other parts o£ Hm
country.

As You Like It cigars are gaining in popularity as
is shown by the increased number of orders being re-
ceived, and a particularly gratifying fact is the increase
in orders for class C merchandise.

Abe Caro, 0])timo representative, was in town last
week, wearing that smile of satisfaction, which he ex-
plained was caused by the very apparent upturn in
business.

Ben Lumley, Garcia y Vega rej)resentative, has
just returned from a trip to points south as far as
AVashington, in the interest of his brand and reports
one of the most successful trips he has had in a long
time.

Harry A. Tint, president of the Retail Tobacco
Dealers of Philadelphia, has issued an invitation to all
the worthwhile retailers in the Quaker City to attend a
meeting of the association at the Hotel Adelphia,
Thursday evening, ^May 3, at 8 o'clock. Join Up, Give
Your Support to This Movement, and Inrttje Pi;oTKr
TiON TO Your Business.

Bayuk Cigars, Inc., for the first quarter of 1934,
ending March 31st, reports net profit of $114,761 after
depreciation. Federal taxes, etc., equal after dividend
requirements on the 7 per cent, preferred stock, to 74
cents a share on 90,851 no-par shares of common. This
compares with $160,734, or $1.21 a share on 89,6fi7
common shares in the same rpiarter of the previous
year.

RETAILERS' CODE AUTHORITY

BOAKl) OF DIRECTORS' meeting of the
Retail Tobacco Dealers of America, Inc., was
liekl Monday, April 23d, in the offices of the
association, 233 Broadway, New York City.
The directors ek'cted to the board Arthur S. Meyer,
of the D. A. Schulte (^o.; A. C. Allen, of the United
Cigar Stores Co.; Moe Weinstein, of the Silver Ring
Association, and Kiic Calamia, of the Independent Re-
tail Tobacconists Association of America. These gen-
tlemen were elected to fill vacancies in the board.

S. S. Perry, who has for some months past been
the Washington representative of the association, re-
siding permanently in Washington, was elected ex-
ecutive secretary of the association.

The boa id also elected a number of vice-presidents,
including the following: Fred II. Lintz, Rochester,
X. Y. ; Fred II. Barrows, Providence, R. I.; A. V. Hen-
derson, St. Louis, Mo.; Chas. F. La Fond, Detroit,
Mich.; W. (J. Patterson, Birmingham, Ala.; Otto
Heuck, Boise, Idaho; Geo. R. Curtis, Baltimore, Md.;
Louis T. Shirk, Lincoln, Neb.; E. J. Boyle, Phoenix,
Ariz.; A. K. Steinmeyer, Hartford, Conn.; N. D.
Eubank, Athmta, (Ja.; R. Carl Mitchell, Washington,
D. C. ; Walter R. Irving, Jacksonville, lia. ; Harold C.
Dean, Wilmington, Del.; W. A. Williams, Waterloo,
Iowa; Paul H. (iiaham, Springfield, 111.; Juan
Dominguez, New Orleans, La.; Oscar R. Andren, Port-
land, Me.; Fred K. Rowley, Duluth, Minn.; E. Luedke,
St. Paul, Minn.; Raymond Carlson, Butte, Mont.; L. G.
Verrette, Manchester, N. II.; Chas. Ilfield, Albu-
quenpie, N. M.; James T. Nolan, Albany, N. Y.; H. A.
Johnson, Syracuse, N. Y.; A. E. Stocker, Canton, Ohio;
H. G. Hall, Erie, Pa.; Geo. Jones, Philadelphia, Pa.;
R. O. Fielding, Seattle, Wash.; C. H. Demuth, Lan-
caster, Pa.; P. W. Saville, Salt Lake City, Utah; Henry
I), (juy, Roanoke, Va. ; H. W. Mclnemey, Cheyenne,
Wyo. ; Larry Goodman, Milwaukee, Wis.; Louis A.
Gretz, Los Angeles, Calif.; Henrv Strauss, Cincinnati,
Ohio; Frank Miller, Norfolk, Va.; Carl Wilke, San
Francisco, Calif.

These vice-presidents will represent the associa-
tion and assist local code authorities in their territories
to cairy out enforcement of the Code.

As the Retail Tobacco Dealers of America were
designated by the Administrator to elect the tobacco
members of the Code Authority for the retail tobacco
industry, the board elected the following members to
the Code Authority: Wm. A. Hollingsworth, Arthur
S. Meyer, ClitTord M. Dawson, I. II. Lefkowitz, Joseph
Sanderson and Louis Klein.

TAKE ON WHEELING STOGIES

William A. Copph', east^'ini representative for
M. Marsli & Son, Wln-eling, W. Va., manufacturers
ni the fainou> \Vhe(»ling Stogies, was a visitor last
week and left with a nice vohiine of r>nlers. M r. ( 'opple
stated that Packer Bros., distril)utors, of New York
City, had taken on the .Marsh line for distribution in
their territory, and also, with pardona!)h» pride, dis-
phiyed a h»tter from factr)ry head(|uart<'rs stating that
they were working to capacity and were so far over-
sold that it was necessary to allot tlicir shipments to
their various distributors. Dusel, Goo<lloc & Co., in
Atlantic City, have also taken over th(» distribution ol"
the Marsh line for their territorv.

«

Th4 Tobacco World

Cigars Up Nearly 198 Millions in 9 Months

— Derrpasr Total All Classes:

First ffM<,s. i- Increase United States. .. . 3,350,091,758 + 197,966,292

(Muars: Fiscal Yr. lu:u Quautity Puerto Rico 46,416,910 -f- 764,010

(^ass A— Philii)pine Islands 181,105,319 + 53,783,541

United States.... 2,854,599,485 + 286,672,520 ■

Puerto Kico 43,463,880 — 778,090 Grand Total 3,577,613,987 -f 252,513,843

Philip])ine Islands 180,719,380 + 54,156,895

Little Cigars:

Total 3,078,782,745 + 340,051,325 United States. .. . 170,866,587 — 5,748,521

Puerto Rico 2,330,000 — 1,274,000

( lass B— , ^„^ , , ^ Philippine Islands

Ignited States.... 26,339,688 - 4,232,111 ^*

Puerto Rico 2,156,600 -f- 1,654,250 Total 173,196,587 — 7,022,521

Philippine Islands 170,491 — 353,955

• Cigarettes:

Total 28,666,779 — 2,931,816 United States. ... 84,038,325,322 +7,899,719,966

' Puerto Rico 3,549,800 + 1,210,460

'''nti.oJ-S.a.os.... 4:n,H.8.m - 78,2.r2,750 I>l.ilip,.i- Islands _ia76J50 - 117,860

Puerto Rico 795,430 — 111,650 rp^^^j 84,043,051,872 +7,900,812,566

Philippine Islands 210,542 + 4,394 ;

~~~ ' Tjar^e Ci**'arettes'

Total 432,864,360 — 78,310,006 United States.... 72,243,700 + 70,016,916

.,, T^_ ■ Puerto Rico 755,000 + 365,000

SitecTstates.... 33,170,687 - 5,574,015 Philippine Islands MOO ^.^1

Puerto Rico 1,000 - .300 ^^^^^^ 73,005,100 + 70,377,325

Philip])ine Islands J,tMt) + «<•*

Total nXiZ,!^! — 5,574,341 ^"" All United States. 28,384,217 + 2,907,440

TT> ;4. 1 W4..1..W dvn'iio 697 352 Tobacco, Mfd. (lbs.) :

I ,i,to.l StaH-s .... 4.1..5,.>1() <..H, ^^^^^^^ 230,787,876 + 5,884,029

Puerto nico • • t^i -t • t i i 7« 199

I'hili,,,mu. Islands 2,856 - 23,!>67 Plnl.p,.,no Islands 76 - 122

T„i-,1 7^^6366 - 721,319 Total 230,787,952 + 5,883,907

JAMES A. GRAY ELECTED
NEW PRESIDENT OF REYNOLDS

AMKS A. (iRAY was elected president of R. J.
Reynolds Tobacco Co. at the annual meeting
ot directors in Winston-Salem, X. C., on April
l(;th. lie succeeds S. Clay Williams, who was
a<lvanced to the ])osition of vice-chairman of tlie board
of directors. .Mr. Oray has been with the company
since 1920. He is a native of Winston-Salem, a grad-
uate of the local high school and of the University ot
.North Carolina in tlic class of 1908. Following his
^naduation, he became associat«'d with the Wachovia
.National Hank, and later with the Wachovia Bank and
Trust Co., where he was successively assistant trea.s-
urer, treasurer aiul vice-])resident.

He became connected with R. J. Reynolds Tolmcco
Co. fourteen years ago as vice-presidi'iit, a position
which he has held continuously since. He is forty-
four years old.

The officials of the company are: Bowman dray,
chairman of the l»oard; W. X. Reynolds, chairman of
the executive ccmimittee; J. A. Gray, pn'sident ; S. (May
Williams, vice-chairman of the board; H. T. Kirk, vice-
president ; R. H. Lasater, vice-president: M. K. Mot-
singer, secretary; R. D. Shore, treasurer.

May I, 1934

JAMES A. GRAY

Code of Fair Competition

{Continued from Page 4)

Section 10. r])()ii application of any employer,
at any time a liiiilicr rate of exemption for slow workers
than is established in Section 9 of this Article may be
estal)lished by the Code Authority with the approval of
the Administrator. At any time after September 1,
1934. a Ingher or lower rate of exemption may be estab-
lished for any particular emi)loyer by the Code Author-
ity, with the ai^proval of the Administrator, after such
notice and oi)i)ort unity to be heard as the Administra-
tor may recpiire.

Section 11. All jjiece rates shall be established so
as to yield the minimum rates of pay i)rovidetl in this
Article and no i)iece rate shall be reduced in order to
increase the actual nund)er of slow workers employed
bv anv nuuiufacturer.

Section 12. Tlie wai'c.s of all employees now in
excess of the minimum herein established shall be equi-
tably readjusted.

Section 13. Where male and female employees
perform substantially the same duties or do substan-
tially the same work, they shall receive the same rate
of pay.

ARTICLE V.

General Labor Provisions.

Section 1. Employees shall have the right to or-
ganize and bargain collectively through representa-
tives of their own choosing, and shall be free from the
interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such repre-
sentatives or in self -organization or in other concerted
activities for the purpose of collective bargaining or
other mutual aid or protection.

Section 2. No employee and no one seeking em-
ployment shall be required as a condition of employ-
ment to join any company union or to refrain from
joining, organizing or assisting a labor organization
of his own choosing.

Section 3. Employers shall conqjly with the
maximum hours of labor, minimum rates of pay and
other conditions of employment, approved or pre-
scribed by the President.

Section 4. No j)erson under the age of sixteen
(16) years shall be emploved in the Wholesale Tobacco
Trade.

Section 5. Xo person under eighteen (IS) years
of age shall work, or be permitted to work, at opera-
tions or occupations hazardous in nature or detri-
mental to health. The Code Authority shall submit
to the Administrator within sixty (6t)) days after the
efifective date of this Code, a list of such occupations
for his approval.

Section 6. Emi)loyers shall make payment of all
wages in lawful currency or l)y negotiable checks, pay-
able on demand. All contracts of employment shall
l)rescribe payment of wages at least every two weeks
and salaries at least as often as everv month.

Section 7. Xo provision in this Code shall super-
sede any State or Federal law which imposes on em-
ployers more stringent requirements as to age of em-
ployees, wages, hours of work, or as to safety, health,
sanitary or general working conditions, or insurance
or fire protection, than are imposed by this Code.

Section 8. Employers shall not change the
method of payment of employees' compensation or re-
classify employees or duties of occupations performed
by employees or engage in any other subterfuge so as
lo defeat the purposes of the Act or the provisions
of this Code.

Section 9. X'^o employee paid at a rate in excess
of the minimum shall be discharged and re-cmployeil
at a lower rate of pay for the purpose of evading the
provisions of this Code.

Section lU. All employers shall keep posted com-
plete copies of the provisions of this Code dealing with
hours, wages and conditions of employment in conspic-
uous places of easy and continuous access to employees.

Section 11. Each member of the industry shall
comply with such rules and regulations with regard to
the posting of notices, bulletins and extracts of Code
provisions as may be from time to time further issued
by the Administrator. Such notices, bulletins and ex-
tracts of Code provisions shall be written in Phiglish
and such other language as may be in general use
throughout the establishment.

Section 12. Every employer shall make reason-
able iJiovision for the safety and health of his em-
ployees at the place and during the hours of their
employment.

Standards for safety and health shall be submitted
by the Code Authority to the Administration within six
months after the etfective date of this Code.

Sf:cTioN 13. After the effective date of this Code,
wages shall be exempt from fines and rebates ; and from
charges and deductions, except charges and deductions
for employees' contributions voluntarily made by em-
ployees for benefit funds. Xo employer shall with-
hold wages except upon service of legal process or
other ])apers lawfully requiring such withholding.

Deductions for other purposes not heretofore
stated mav be made onlv when the contract is in writ-
ing and is ke|)t on file by the employer for six months
after the termination of the contract and which shall
l)e kept open for the inspection of Government repre-
sentatives.

Section 14. At tin* expiration of nine (9) months
after the effective date of this Code, the industrv shall
petition the President or the Administrator to review
the provisions of this Code relating to hours of labor
and rates of pay.

ARTICLE VI.

Merchandising Plan.

The Merchandising Plan set forth in Scheduh* I,
annexed hereto, adopted for the Wholesale Tobacco
Trade and the Ketail Tobacco Trade in their respective
Codes of Fair Comi)etition and hereinafter for con-
venient reference in part repeated, is hereby ac(U'pt<'d,
adopted and approved; and all of the provisions of the
said Merchandising I 'Ian set forth in said Schedule T
and this Article VI in so far as they pur|)ort to regulate
the conduct of members of the Cigar Manufacturing
Industry are hereby made rules of fair practice and
fair competition for all memlwrs of the Cigar Manu-
facturing Industry.

The provisions of said Schedule I and of this Ar-
ticle VI mav be amended onlv bv amendment of this

The Tobacco World

Copyrlcbt, 1934, B. J. BcTnolds Tobacco Gompuv

Watch out for the
signs of jangled nerves

You've noticed other people's nerv-
ous habits — and wondered probably
why such people didn't learn to con-
trol themselves.

But have you ever stopped to think
that yoUy too, may have habits that are
just as irritating to other people as
those of the key juggler or coin jingler
are to you ?

And more important than that,
those habits are a sign of jangled
nerves. And jangled nerves are the sig-
nal to stop and check up on yourself.

Get enough sleep — fresh air — rec-
reation—and watch your smoking.

Remember, you can smoke as
many Camels as you want. Their
costlier tobaccos never jangle the
nerves.

FREE

Game Book

Shows 20 waya to
test nerves — all il-
lustrated. Instruc-
tive and amusing!
Try them on your
friends— see if you
have healthy nerves
yourself. . . Mail order -blank below with
fronts from 2 packs of Camels. Free book
comes postpaid.

CLIP AND MAIL TODAY I I

R. J. Reynold* Tobacoo Company |

Dept. U2-A. Winaton-Salem, N. C. |

I enclose fronts from 2 packs of Camels. ■

Send me book of nerve testa postpaid. |

J

Nam* I

(raiNT NAMB)

^n€t.

I

City

StaU

OffM vxpirM D»e»ibw SI, ItM

COSTLIER TOBACCOS

Camels are made from finer, MORE EXPENSIVE
TOBACCOS than any other popular brand of cigarettes!

SMOKE AS MANY AS YOU WANT...
THEY NEVER GET ON YOUR NERVES I

«• ii. 1^ li.!! CAMEi CARAVAN with Casa Uma Orchestra, StoopnagU and Budd. Connie Bosweil, Every Tuesday and
TUNE IN I Thursday at9PM,El T.-8 P. M , CS. T.~7 P. M., M.S. T.-6 P. M.. P.S. T. over W ABC -Columbia Network

May /, jgs4

Code and of tlio Codes for tho Wholosalo Tol)aeco
Trade and the Retail Tobacco Trade, ])ut the Adnnnis-
trator may of his own motion, or on recommendation
of the Code Authority hereby esta])lished or of either
of the Code Authorities established by the Codes re-
spectively for the Wholesale Tobacco Trade and the
Retail Tobacco Trade, and on such notice and hearin<>-,
if any, as the Adminisli-ator may direct, stay th.e oper-
ation of the provisions of said Schedule I and this Ar-
t icle VI.

Section 1. As to each of the cigars of his manu-
facture, each ciiiar manufacturei- shall lecord with the
Counsel the mininnnn sales ])rice at which such cii-ar is
intended to be sold at retail (exclusive of any |L»-overn-
mental tax or chari»e thereon recpiired to be i)aid by the
jobber or retailer), which ]n-ice, hei-einafter referred
to as "the retail pi'ice, " shall constitute the l)a^is for
computin,i»- the discounts and terms for all dealers as
hereinafter provided; and shall also record with \ho
Authority the discounts and credit terms; to be allowed
by him from the retail price in connection with iho sev-
eral respective classes of transaction described in sub-
divisions (a) to (d) inclusive of Section 2 of this Ar-
ticle VI. The retail ])rice and, within the limits
hereinafter prescribed, the discounts shall be subject
to chansfe at the discretion of the maimfacturer, ])ro-
vided the revised price of discounts, as the case may
be, be recorded witli the Authority at least tive days be-
fore the chanire becomes effective uidess a shorter time
be required by a ci<j:ar manufacturer in order to meet a
competitor's reduction of ])rice, which is not in viola-
tion of this Code. The retail price shall be proniinently
marked on each container of ciirars.

Section 2. P^'rom the recorded retail ]n'ice, eadi
ciirar manufacturer shall, as to each of his ])roducts,
prrant discounts to be established by him in liis dis-
cretion within the limits hereinafter in this Section 2
prescribed, as follows:

(a) In the ease of sales, if any, to retailers
other than sales to chains of stores and other than
drop shi])ment sales under subdivision (d) of this
section 2, a discount of not more than 28%.

(b) In the case of sales to accredited ciiifar
jobbers, a discount, in addition to the discount
which shall have been established by the numufac-
turer under subdivision (a), of not more than 14%.

(c) In the case of sales to cii^ar service job-
bers, a discount, in addition to the discount whicli
shall have been established l)y the manufacturer
under subdivision (a), of not niore than 66 2/3%
of the established discount to accredited iobbers.

(d) In a territory where a ciuar nuuuifacturer
has an accredited ciyar jobber, the ciijar manufac-
turer may, in his discretion, make drop shipments
to retailers or sub-jobbers, provided the accredited
ci^ar jobber a,i»rees to or icnpiests such shi])ments;
in a territory where the ci^rar mamifacturer has
no accredited cisfar jobber, the ci*rar manufacturer
may, in his discretion, make drop shipments, to
retailers. Provided that in either case shipment^
shall be made only in quantities of not less than
2,000 cip:ars in the case of Class A and Class B
cio:ars, and not less than 1,000 ciufars in the case
of Class C or hi^jfher classes.

For such sales or drop shipments, there shall

be established a discount for the drop shipment

purchaser, in addition to the discount which shall

have been established by the manufacturer under

to

Subdivision (a), of not more than 5%, and this
discount shall be allowed by the manufacturer or
jobber, whichever shall make the billing.

The cii»ar manufactui'er nuiy in connection
with each dro]) shi]>ment sale allow to the accred-
ited ciiiar jobl)ei- who has recpiested or consented
to such sale a service credit. Provided, that the
total of the service ci'edit and the discount allowed
to the drop shi])ment purchaser and the accredited
jobber shall not exceed the 14% set forth mi Sub-
division (b) above.

(e) In the case of sales to chains of stores,
discounts not exceeding- the discounts which the
manufacturer shall have establislied for his sales
to accredited cii^ar jobbers under Subdivision (b),
provided, however, that each ci,ii:ar manufactu!-er
may determine in his own discretion to which
chains, if any he will make direct sales and, within
the limits her<Mnai)ove ])rescribed, the amount of
discounts on each such sale.

On each transaction in any of the cate<^oi*ies (a)
to (d) inclusive above described, the ciirar manufac-
turer may allow a further discount of 2% for cash
within his established credit terms.

Xothintr herein contained shall ])revent any ciirar
manufacturer from establishinir within the maximum
percentajre limits hereinabove prescribed a dilTereiit
schedule of discounts with resj)ect to each of the sev-
eral brands, sizes, shapes or prices of his ])roducts, or
a schedule of discounts different from that of anv other
ci.uar manufacturer: but each ci^ar manufacturer shall
a])i)ly his established system of discounts uniforndy as
to each of the classes of transactions above enumerated
in Subdivisions (a) to (d), inclusive, and within each
of the said classes of transactions there shall in no case
be any individual vai-iation or variations from the dis-
count or discounts so established 1)y such ciyar manu-
facturer. The service credits provided for in Sub-
division (d) need not be uniform and may vary in each
individual case.

Section 3. No nuniufacturer shall sell cisrars at
retail to consumers except in accordance with the ]n*o-
visions of the approved Code of Fair Competition for
the Retail Tobacco Trade, but the provisions of this
merchandisins: plan shall not applv to anv cisrar manu
facturer who sells exclusively and directly to the con-
sumer.

Section 4. No manufacturer shall offer or irive a
free deal. The term **free deal'- as used in this para-
irraph means the u:ift of cisrars or anything: of value or
any special deal, discount or allowance conditioned
u])on the purchase of a product.

Section 5. All sales by manufacturers shall be
evidenced bv itemized invoices sho\vin2: the retail ])rice
and the discounts irranted therefrom.

Section fi. I^pon the recommendation of the Code
Authoritv established by this Code or the Code for the
"Wliolesale Tobacco Trade or the Code for the Retail
Tobacco Trade or upon application of any member of
the Cicrar Manu fact urinir Industry or of the ^^^lolesale
Tobacco Trade or of the Retail Tobacco Trade and the
approval of such recommendation or application bv
the Administrator, the Code Authorities established bv
the said several Codes, shall, upon such notice and
opportunity to be heard, if any, as the Administrator
may require determine by joint action minimum dis
counts to be prescribed in connection with sales of
cigars by any member of the Industry, and such deter-
mination shall be effective only upon the concurrence*

Th4 Tobacco WorU

May /, ig34

U

ther ap])roval of the Adiniiiislrator, such miniimini dis-
eounts shall bo biiuliuii: ii])0]i all inoinbors of the
Industry.

Septiox 7. WluTovor auy of tho provisions of this
Article VI provide for two or more discounts from the
retail ])rice. such discounts shall ])e com])uted sep-
arately and successively so that each succeeding: dis-
count shall he com])ute(l u])on the balance of the retail
price reniainini;- after the deduction of the next pre-
cedinii" discount ))rovided for.

Sk^tiox S. Xothinii: in this Article VI shall be
construed to ])revent the free and ireneral distribution
(tf articles connnonly used for advertising, except in so
far as such distribution would constitute in effect an
additional discount or reduction in price.

ARTICLE VII.
Trade Practices.

Section 1. False Aflrrrfisivff. The makinir or
causinu* or permittins: to be made or ])ublished of any
false, untrue or deceptive statement bv way of adver-
tisinc: or otherwise concernins: the ,u:rade, quality, quan-
tity, substance, character, nature, oi-isfin, size or prep-
aration of any product of the trade, havinir the ten-
dency and capacity to mislead or deceive purchasers
or prospective purchasers and the tendency injuriously
to affect the business of competitors, is prohibited as
an unfair method of competition.

Sectiox 2. Drcppfire Brmidhq. The infriniro-
ment of established trade-marks and the use of trade-
marks or trade names which will result in deception of
the public or enable dealers to perfect such deception is
prohibited as an unfair method of competition.

Section 3. Fahr BiU'wg. Xo member of the Tit-
dustry shall knowinirly withhold from or insert in any
quotation or invoice any statement that makes it inac-
curate in any material particular.

Section 4. hincnirnie LahrUinq. Xo member of
the Industry shall brand or mark or pack anv ci.c:ar
and/or ciurars in any hianner which is intended to or
does deceive or mislead purchasers with respect to
biands, parade, quality, quantity, oricrin, size, substance,
cliaracter, nature, material content, or preparation of
such ci^ar and ^or cisrars.

Section 5. Inaccurate Ecfcrcticps fn Cnwpefi-
/'»rs'. pfr. Xo member of the Industry shall publish ad-
vertisins: which refers inaccuratelv in any material
particular to any competitors or their croods, prices,
values, credit terms, policies or services.

Section 6. Threat. <t of Lawsuits. X^o member of
the Industry shall publish or circulate unjustified or
unwarranted threats of le,e:al proceedinsrs which tend to
or have the effect of harassincr competitors or intimi-
dating: their customers. Failure to prosecute in due
course shall be evidence that any such threat is unwar-
ranted or nniustified.

Section 7. Brihinrf Emplnj/ees. Xo member of
the Industry shall ijive, permit to be iciven, or directly
or indirectly offer to prive, anything: of value for the
purpose of influencinir or rewardins: the action of any
employee, ajrent or representative of another in rela-
tion to the business of the employer of such employee,
the principal of such a,c:ent or the represented party,
without the knowledsre of such employer, principal or
party. This provision shall not be construed to pro-

Section 6. If the Administrator shall at any time
determine that any action of the Tode Authority or anv
asrency thereof may be unfair or unjust or contrary to
the public interest, the Administrator may require that

/a

hibit free and general distribution of articles com-
monly used for advertising except so far as such ar-
ticles are actually used for commercial bribery as here-
inabove defined.

Section 8. Coerciott. No member of the Industry
shall require that a purchase of any tobacco products
or other goods be a i)rere<iuisite to the i)urchase of any
other tobacco products.

Section 9. No member of the Industry shall dis-
tribute any cigars or stogies, produced by* employees
])aid at the wage rates prescribed in Article IV, Sec
tion 5 of this Code, unless such cigars or stogies are
])acked in containers clearly marked to indicate to the
consumer that the cigars or stogies contained therein
are intended to sell at retail, at not more than 2 for :.
cents.

ARTICLE VII.

Orgranization, Powers and Duties of the Code

Authority. Organization and Constitution.

Section 1. There shall forthwith be constituted
a Code Authority consisting of not more than twehn*
members, to be selected as follows :

Six members, three of whom shall represent ma
chine cigar manufacturers and three of whom shall
represent hand cigar manufacturers, selected bv the
manufacturers who aie members of the Associated
Cigar Manufacturers and Leaf Tobacco Dealers.

Two members, one of whom shall represent ma-
chine cigar manufacturers and one of wiiom sha'l
represent hand cigar manufacturers, selected frnii
non-members of the foregoing Association by the Ad-
ministrator.

One member, ap]>ointed by the Labor Advisory
Board of the National Recovery Administration.

Section 2. In addition to membership as above
provided, there may be not more than three (3) mem-
bers, to be appointed by the Administrator to serve
without vote.

Section 3. The Association and each trade or
industrial association directly or indirectly partici-
pating in the selection or activities of the Code Author-
ity shall (1) impose no inequitable restrictions on mem-
bership, and (2) submit to the Administrator true cop-
ies of its articles of association, by-laws, regulations,
and any amendments when made thereto, together w^ith
such other information as to membership, organization,
and activities as the Administrator may deem neces-
sar\' to effectuate the purposes of the Act.

Section 4. In order that the Code Authority shall
at all times be truly representative of the Industry
and in other respects comply with the provisions of the
Act, the Administrator may prescribe such hearings
as he may deem proper; and thereafter if he shall find
that the Code Authority is not truly representative or
does not in other respects comply with the provision**
of the Act, may require an appropriate modification
of the method of selection of the Code Authority.

Section 5. Nothing contained in this Code shall
constitute the members of the Code Authority partners
for any purpose. Nor shall any member of the Code
Authority be liable in any manner to anyone for any
act of any other member, officer, agent, or employee of
the Code Authority. Nor shall any member of the
Code Authority exercising reasonable diligence in the
conduct of his duties hereunder, be liable to anyone
for any action or omission to act under this C^ode, ex-
cept for his own wilful misfeasance or non-feasance,
of all three Code Authorities and, subject to the fur-

Th* Tobacco World

CicarB are the
Ust pleasurable

,nd econ.»m»c«I
form of smoking.

e IB34 B. C. I.

BAYUK BULLETIN

WEDOOURMRT

/OLIJME II.

MAY 1, 1934

NUMBER 7

Iphulofax

(The lietailer^s Friend)

SAYS

Mr. Jobber: In ana-
lyzing results from your
sales force, do you as-
certain if trade is called
upon too frequently or
not often enough? Has
each man enough ac-
counts or too many ac-
I counts? Is average sale per store too
low or is there a tendency to load
up trade? What is average credit
Iturnover by each man? etc., etc. A
good analysis often discovers the right
or wronp status of a business or of
any salesman out after business.

The rainiest spot on the earth is the
Iwaipo Valley in Hawaii, which truth
hasn't the least iota to do with the
fact that a salesman we know secured
50 orders one blizzardy day as against
another salesman getting 12 on a
bright, sun-shiny day. Wonder wheth-
er it was the weather!

Speaking about sales records, how's
this for high mark of orders taken in
one week's work . . . maybe that word

I "work" should have been "WORK"
... 214 orders were taken by C. R. C.

I during week ending April 7th. There's
something to shoot at, boys! How
about you F. L, B., and you, J. J. U.

[beating it? ^

Don't tell me a real C. B. A. mem-
ber can't help boost cigar sales . . .
read this from Floyd N. out on the Pa-
cific Coast: "Lots of movie owners
give glassware, etc., to draw more
women patrons. ... I went to a movie
owner and said, 'Why don't you give
I something to attract men?' Result —
I he gave u CIGAR to each male patron
on his free gift night." Nice work,
brother C. B. A.!

"I won first prize in last month's
sales contest," writes B. L. C, "and
when I analyzed the whole thing I
I realized that 1 didn't work any harder
to win the prize than I should have
worked to win my own self-respect."
Commendable thought, B. L. C.

THE ANSWER TO
''I CAN BUY 'EM CHEAPER'

Salesman A. W. Goudey Spikes Bromide for Keeps

If you should make the finest
mousetrap in the world and start
out to peddle it around to the re-
tail trade, it wouldn't be long
before you ran up against that
moss-grown argument — "Why
should I sell your mousetraps ? I
can buy a cheaper line and make
more money."

The first salesman who ever
sold cigars met that argument
the first day he started on his
rounds. And every other sales-
man has been hearing it regu-
larly ever since. There's nothing
novel about it, but as a first qual-
ity, chilled steel, hard-to-crack
piece of sales-resistance, it's a
lulu. The darned thing is so
logical.

However, A. W. Goudey, New
York cigar salesman, tells how
he flattened out the "buy 'em
cheaper" comeback with a sales
argument that was still more
logical. Let him tell it.
• • •

I was calling on the proprietor
of an up-state drug store. And
he said "no" as plainly as a man
could say it.

"Look here, Goudey. I can buy
lots of cigars cheaper than yours,
that go pretty well with my
trade. I'd be seven kinds of a
dam fool to cheat myself out of
that extra profit."

"That's right, Mr. X," I re-
plied. "I see your point. By the
way, how many of my brand
could you sell in a month?"
Well, it's a popular smoke —

I'll admit that. Let's say I could
sell about 500 a month. But I
would make less profit. I might
not sell as many of these other
brands but I make — "

"Pardon the interruption, Mr.
X," I said. "If you can sell 500
of my cigars in a month — and
your bill is not due for 30 days
— you're making a good profit
without any investment at all.
It's just as if you had these
cigars on consignment. With
your permission I'd like to leave
this little display on your case —
and send you 500 cigars. Let's
see what the quality of this
cigar, plus all the advertising
we're putting behind it, will do
for you."

"Right," said X. "I'll try it."
And he did. Before his bill was
due, he'd sold out and had to or-
der more. Now when I call to
see him I just say "Good morn-

ing!" He's always ready with

AESOP WOULD HAVE
LIKED THIS ONE

Yes, this actually happened.
Jones leaves his office accompanied
by his friend Brown.

JONES: Gee, I've got to get some
cigars.

BROWN : There's a cigar store, right
over there.

JONES: Not for mine. The baby
that runs that shop knows
too much.

BROWN: What d'vou mean, he knows
too mucn.

JONES : He knows better than I do
what cigar I ought to
smoke. He's always trying
to switch me to some brand
I never heard of.

BROWN: Makes a larger profit on it
probably.

JONES: I dunno. Anyway, I'm
trading at a place where
the motto is "You pays
your money and you takes
your choice."

MORAL: It's sometimes easier to
talk yourself out of a sale
than into one.

an order.

BAYUK BRANDS BUILD BUSINESS

Bayuk Philadelphia Perfecto

(BAYUK -PHILLIES")

Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

«o

If for any reason you miss a cus-
tomer Oil your regular visit and it's
just impossible to make a call-back, do
you 'phone him at the very earliest

opportunity?

There is more nutritive value in
codfish than there is in gooseberries
and there is more economical pleasure
»n a ciKar than in any other form of
smoking. — o—

"Dear Phil — Will you do all you can
to kill the report that I have joined the
^avy. Outside of trying to get a job
the only thing I want to join is the
C. B. A.

(Signed) Alex Smart."

Wben are you joining?

CBA

CIGAR BOOSTERS' ASSOCIATION

a^ui^

D.ai.

*j»;^tiat*d wiih BAYUK CIGARS, INC.. PWfa-
"■W^— MoAot^ «/ Jim* eig€uv •imem i»97

REVISING THE

DICTIONARY

In the bright lexicon of Harry
Clews, a St. Louis cigar salesman,
the word "poster" is now spelled
"booster."

Before Mr. Clews leaves a dealer's
store it is his custom to produce a
poster with a brief sales spiel to the
following effect: "Let me put this
little booster on your window. It will
be a boost for your business, my busi-
ness and the cigar business."

Mr. Clews reports a record number
of posters installed by this simple
metnod of impressing the dealer with
the undeniable fact that a good
poster, prominently displayed, is a
hard working, silent salesman who
asks no wages — and who never goes
out for lundb.

WEEP-AND THE WORLD WEEPS WITH YOU

L.M.T., cigar salesman, tells one

that you wouldn't believe if you hadn't

heard really intelligent salesmen pull

tricks equally as dumb.
♦ ♦ ♦

I was having lunch in a restaurant
some time ago (relates L.M.T.), when
in came one of my competitors (we'll
call him Smithers) who sells a line of
good cigars.

"How's business?" he asked the
proprietor. He got the inevitable
answer: "Rotten. How's yours?"

"Lousey," replied friend Smithers.
With that he and the restaurant man
fell to weeping on each other's shoul-
ders. This talk about business getting
better was the bunk, — there wasn't
any business to get better and collec-
tions were awful. Oh, they had a sim-

ply marvelous time. After about five
minutes of this. Smithers went away,
sobbing quietly into his crying towel.

As though I had not overheard a
word of their conversation, I stepped
up to the desk. "Say," I remarked
casually. "Did you see in the papers
the coal miners got $3,200,000 last
pay. And with this cold weather, it
looks like a big pay for them again
this time. Car loadings have picked
up, too. I can certainly feel the ef-
fects in my business. Yesterday was
the best day I've had in months.'

Before I left I had an order for
exactly $62.80. At least half of it be-
longed by rights to Smithers. But he
had no kick coming. He'd had a mar-
velous time unburdening his sorrows
to a sympathetic listener.

I

such action be suspended to ailt'ord an oi)i)ort unity for
investigation of the merits of such action and further
consideration by such ('o(k' Authority or agency pend-
ing linal action which shall not be effective unless the
Administrator ai)proves or unk'ss he shall fail to dis-
api)rove after thirty days' notice to him of intention
to i)roceed with such action in its original or modified
form.

Powers and Duties.

Se('TI(»n 7. Subjeet to such rules and reguhitions
as may be issued by the Administrator, the Code Au-
thority shall have the following powers and duties, in
addition to those authorized bv other provisions of this
( 'ode :

(a) To insure the execution of the provisions
of this C'oile and to provide for the compliance of
the Industry with the provisions of the Act.

(b) To adopt by-laws mid rules and regula-
tions for its i)rocetlure.

(c) To obtain from members of the Industry
such infornuition and reports as are required for
the administration of the Code. In addition to
information required to be submitted to the Code
Authority, meml)ers of the industry subject to
this Code shall furnish such statistical infornmtion
as the Administrator may deem necessary for tlie
puriK)ses recited in Section 3 (a) of the Act to
such P\'deral and State agencies as he may desig.
nate; provided that nothing in this Code shall re-
lieve any member of the Industry of any existing
obligations to furnish reports to any Government
agency. No individual rei»ort shall be disclosed
to any other member of the Industry or any other
l)arty except to such other (Jovernmental agencies
as may be directed by the Administrator.

(d) To use such trade associations and other
agencies as it deems i)roiK'r for tlie carrying out of
any of its activities provided for herein, provided
that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code
and that such traije Associations and agencies
shall at all times be subject to and comply with the
provisions hereof.

(e) To nuike reconunendations to tlie Ad-
ministrator for the cooiilination of the administra-
tion of Ibis {\h\{^ with such other codes, it any, as
may be related to or atTect members of the In-
dustry.

(f) (1) It being found necessary to support
the Administration of this Code, in order to effec-
tuate the policy of the Act and to nuiintain the
the standards of fair competition established here-
under, tin* (*ode Authoiity is authorized:

(a) To incui- such reasonable obligations
as are necessary and jiroper for the foregoing
jjurposes ami to meet such obligations out of

• funds which shall l)e held in trust for the jmr-
poses of the Code and raised as In-reinafter
provided ;

(b) To submit to the Administrator for his
approval, subject to such notice and opportunity
to be heard as he nuiy deem necessary

1. An itemized bmlget of its estimated ex-
penses for the foregoing ])ur])oses, and

2. An equitable ])asis upon which the
funds necessaiy to support such ])udget shall
be contributed by all members of the Indus-
try;

(c) After such budget and basis of contri-
bution have been approved by the Administra-
tor, to determine and collect equitable contribu-
tions as above set forth, and to that end, if neces-
sary, to institute legal proceedings therefor in
its own name.

(2) Each member of the Industry shall be
liable for his or its equitable contribution to the
expenses of the maintenance of the Code Authority
as hereinabove provided. Only members of the
Industry complying with the Code and making
such contribution shall be entitled to participate
in the selection of the members of the Code Au-
thority or to receive the benefits of its voluntary
activities or to make use of any NRA insignia.

(g) To cooperate with the Administrator in
regulating the use of any NRA insignia solely by
those members of the Industry who are complying
with this Code.

(h) To recommend to the Administrator any
action or measures deemed advisable, including
further fair trade practice provisions to govern
members of the Industry in their relation with
each other or with other industries; measures for
industrial planning, and stabilization of employ-
ment; and including modifications of this Code
which shall become effective as part hereof upon
approval by the Administrator after such nulice
and hearing as he may specify.

(i) To api)oint a Trade Practice Committee
which shall meet with the Trade Practice Commit-
tees appointed under such other codes as may be
related to the Industry for the purpose of formu-
lating fair trade practices to govern tlie relation-
ships between employers under this Code and such
other codes to the end that such fair trade piac-
tices may be proposed to the Administrator u
amendments to this Code and such other codes.

(j) To provide appropriate facilities for ar-
bitration, and sul)ject to the approval of the Ad-
ministrator, to prescribe rules of procedure and
rules to effect compliance with awards and deter-
mination.

Section 8. Anv member of the Industrv mav sub-
mit data tending to j)rove that such member is placed
at a competitive disadvantage with or is subject to dif-
ferent economic conditions to those of otiier membei-
of the Industry; and the Code Authority may, after
investigation recommend to the Administrator that
change l)e made in the Labor Provisions of this Code,
and u|)oii approval by the Administrator, after such
notice and hearing as he may sj)ecify, such new pro
visions shall become effective for that member of the
Industry.

Section !). Whenevei" any <piestion may arise
under this Code as to the construction and meaning ot
any portion thereof, the Code Authority may issue
such interpretations as mav be necessarv to elfectuatr
the operation of and compliance with the j)olicy of the
Act, subject at all times to the approval of the Adminis
trator and such interpretations approved by the Ad
ministrator shall become operative as a part of thi^
( 'ode.

Section 10. No luovision of this Code siiall deny
to anv member of the Industrv or to anv paitv in anv
jiroceeding the right to ap})eal to the Administrator nor
prevent, at any time, direct appeal to him from any
determination of the Code Authoritv. The Co<le Au-
thoriiy may, if it chooses, invoke tlie j)roeedure pio-
vided for in this section.

Th4 Tobacco WorU

ARTICLE IX.

Modification.

Section 1. This Code and all the ])rovisions
liiereof are expressly made subject to the right of the
President, in accordance with the provisions of sub-
section (b) of Section 10 of the Act, from time to time
lo cancel or modify any order, approval, license, rule
or regulation issued under said Act.

Section 2. This Code, except as to provisions re-
(juired by the Act, may be modified on the basis of ex-
perience or changes in circumstances, such modifica-
tions to be based upon application to the Administrator
and such notice and hearing as he shall specify and
to become effective on approval of the Administrator.

ARTICLE X.

Monopolies, Etc.

Xo ])rovision of this Code shall be ai)plied as to
permit monopolies or monopolistic practice, or to elim-
inate, oppress, or discriminate against small enter-
prises.

ARTICLE XI.

The provisions of this Code shall not apply to the
territory of Puerto Rico, but its provisions shall apply
to the marketing of Puerto Rican cigars, by the manu-
facturers thereof, in the United States.

ARTICLE XII.

Effective Date.

This Code shall become effective on the date speci-
fied by the President in \m order of approval.

SCHEDULE L

Merchandising Plan.

Sales by Cigar Manufacturers.

Sfxtion 1. As to each of the cigars of his manu-
facture, each cigar manufacturer shall record with the
(V)uncil the minimum sales price at which such prod-
uct is intended to be sold at retail (exclusive of any
uovernmental tax or charge thereon required to be paid
bv the jobber or retailer), which price, hereinafter
referred to as **the retail price" shall constitute the
basis for computing the discounts and terms for all
dealers as hereinafter provided ; and shall also record
with the Council the discounts and credit terms to be
allowed by him from the retail price in connection with
the several respective classes of transaction described
in subdivisions (a) to (d) inclusive of Section 2 of this
Division A. The retail price and, within the limits here-
inafter prescribed, the discounts shall be subject to
change at the discretion of the manufacturer, provided
the revised price or discounts as the case may be, be
recorded with the Council at least five days before the
change becomes effective unless a shorter time be re-
quired bv a cigar manufacturer in order to meet a
competitor's reduction of price which is not in viola-
tion of this Code. The retail price shall be prominently
marked on each container of cigars.

Section 2. From the recorded retail i)rice, each
cigar manufacturer shall as to each of his products,
grant discounts to be established by him in his discre-
tion within the limits hereinafter in this Section 2 pre-
scribed, as follows:

mm^mmmmimmm^^limmm

ILLIAN RUSSELL

2

for

V 5c

CIGARS

CIGA

P. LORILLARD GO'S
Quality

2 *««• 5^

Cigars

Meeting the public's demand
for quality cigars
moderately priced

NEW

CURRENCY

CIGARS

2

for

5c

Our Other Popular 2 for 5<? Cigars
JAMES G. BLAINE • • POSTMASTER
LA FRAOSA • SARONA • WAR EAGLE

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

JESSE A. BLOCH. Wheeling. VV. Va v^ ^ S'^IJ^Ili

JULIUS LICHTENSTTEIN. New York. N. Y ;.... • .Vice-President

WILLIAM BEST. New York. N. Y Chairman Executive Committee

MAJ. GEORGE W. HILL. New York. N. Y X'"p'^!!H^n

GEORGE H. HUMMELL. New York. N. Y vl^^p'" den

M. H. SHELTON. Washington. DC Vce' Dresden!

WILLIAM T. REED. Richmond. Va Vc^ President

HARVEY L. HIRST. Philadelphia. Pa ^ t'!™^^

ASA LEMLEIN. New York. N. Y •; ■•jV, •" nfrtrlnr

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director

Headquarters. 341 Madison Ave., New \ ork Lity

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A. ROLLINGS WORTH. 233 Broadway New York. N. Y. ....President

CLIFFORD N. DAWSON, Buffalo. N. Y Executive Vice-President

JAMES C. THOMPSON, Chicago, 111 Ireasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City pi^t' vi^ePres'S

illLTON RANCK. Lancaster, Pa -FTst v "pr^^ Sent

I). EMIL KLEIN. New York City ^'^creyarTTJeasurS

LEE SAMUELS, New York City Secretary -Ireasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave., Newark, N. J ;." Vr-'o^'-jf^!

Albert FREEMAN. New York. N. Y -.Fust V.c^-Pr"ident

VrVEN M. MOSS, Trenton. N. J Second Vtce-President

A. STERNBERG. Newark. N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

S5il MAg\I?^1 N.MervineS^VP^^^^^^^

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E. ASBURY DAVIS. Baltimore. Md. -■■■•■■■■■ V'v Scrlta^y

JOSEPH KOLODNY. 200 Fifth Ave New York. N. \ f^llsurer

GEO. B. SCRAMBLING. Cleveland, Ohio ireasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

DDr»\x;w President

hTrMAN H YAFFE, m Fox BuiidingV Phiiadeiphia.' Pa.' ::...■ Secretary

ts

May /, 1934

(a) In the case of sales, if any to retailers
other tlian saks to chains of stores and other than
clro]) shipment sak\s nnder snhdivision (d) of this
Section 2, a discount of not more than 28%.

(b) In the case of sales to accredited ciji^ar
jobbers, a discount, in addition to the discount
which siiall have been established by tlie numufae-
turer under sululi vision (a), of not more than 14%.

(c) In the case of sak's to ci,i»ar service job-
bers, a discounl, in aiklition to the discount which
shall have been established by the manufacturer
under subdivision (a), of not more than (>() 2/3%
of llie estal)lishcd tliscount to accredited jobbers.

(d) In a territory where a cii»ar manufacturer
has an accredited ci^ar jobber, the ci<»ar manu-
facturer may, in his discretion, make droj) ship-
ments to retailers or suhjobbers. provided the
accredited cii;ar jobbei- agrees to or recjuests such
shii)ments; in a territory where the ci<»ar manu-
facturer has no accredited cinar jobber, the ci«i:ar
nuHiufactui* r may, in his discietion, make drop
sliipments to retailers. Provided that in either
case shi]>ments shall be made only in (piantities of
not less than 2,000 cigars in the case of Class A
and Class H ciiiars, and not less than 1,000 cigars
in the case of Class C or hiuher classes.

For such sales or dro]) shii)ments, there shall
be established a discount for the di-o)) shi])n:ent
purchaser, in acklition to the discount which sliall
have been established by the mamifacturer under
Subdivision (a), of not more than .")%, and this
discount shall be allowed by the mamifacturer or
jobbei-, whichever shall make the billiui*'.

The ci,i»ar manufacturer may in connection
with each droj) shijiment sale allow to the ac-
credited ciuar jobber who has rcMpiested or con-
sented to such sale a service credit. Provided,
that the total of the service credit and the discount
allowed to the dro]) shijiment purchaser and the
accredited jo])])er shall iHit exceed the 14% set
foi'th in Subdivision (b) above.

(e) In the case of sales to chains of stores,
discounts not exceedint;: the discounts which the
manufacturer shall have established for his sales
to accredited ciyar jobbers under Subdivision (b),
jirovided, however, that each ciuar manufacturer
may determine in his own discretion to which
chains, if any, he will make direct sales and, within
the limits hereinabove jirescribed, the amount oi
discounts on each such sale.

On each transaction in any of the categories (a)
to (d), inclusive, above descrilied, the ciirar manufac-
turer may allow a further discount of 2% for cash
within his established credit terms.

Xothiui* herein contained shall |)revent any ci<»:ar
manufacturer fiom establishinu: witliin the maximum
l)ercenta,U(' limits hereinaliove prescribed a different
schedule of dis<'ouiits with respect to each of the sev-
eral brands, sizes, shapes or prices of his ])roducts,
or a scheduh' of discounts ditTerent from that of any
other ci^ar manufaclurtM": but each cii^ar manufac-
turer shall aii])ly his <'stal)iished syst<'m of discounts
uniformly as to each of the classes of transactions
above enumerated in Subdivisions (a) to (d), inclu-
sive, and within each of the said classes of transactions
there sliall in no case be any individual variation or
variations from the <liscount or discounts so estab-
lished by such cigar manufacturer. The service credits

to

provided for in Subdivision (d) need not be uniform
and vary in each individual case.

Section .*). No manufacturer shall sell cigars at re-
tail to consumers except in accordance with the i)rovi-
sions of this merchandising ))lan relating to sales by re-
tailers; but the provisions of this merchandising plan
shall not iippW to any cigar manufacturer who sells
exclusively and directly to the consumer.

Section 4. Xo manufacturer shall otTer or give a
free deal. The term ''free deal" as used in this para-
graph means the gift of cigars or anything of value or
any special deal, discount or allowance conditioned
upon the purchase of a jiroduct.

Section 5. All sales by manufacturers shall be
evidenced by itemized invoices showing the retail price
and the discounts granted therefrom.

B.
Sales hfi Jftbhcrs anfl Siib-Johhrrs.

Section 1. Each jobber shall record with the
Council the discounts and credit tei'ins (not exceeding
the discounts which such jobber shall have received
from the manufacturer) to be allowed bv the iobbei-
irom the retail \)vwv in connection with all resales of
cigars which in his discretion he may make to sub-
jobbers. Such discounts shall be subject to change at
the discretion of the jobber, provided that the revised
discounts be recorded with the Council at least three
days before the change becomes etTective unless a
shorter time be recpiired in order to meet a competi-
tor's reduction of price and the discounts so recorded
shall so long as etTective apply to all such resales In-
the jobber to sub-jobbers and there shall in no case be
any individual vaiiation or variations from the dis-
count or discounts so established.

Section 2.-- Hach jobber and each suh-johher shall
record with the Council the discounts and credit terms
(not exceeding the discounts from the retail price which
such jobber or sub-jobber shall have received from the
manufacturer or jobber, as the case may be) to b*-
allowed upon all resales of cigars to retailers. Such
discounts shall be subject to change at the discretion
of the jobber or sub-joI)ber, provided the revised dis-
counts l)e recorded with the Council at least three days
before the change becomes etTective unless a shorter
tim(» be recpiired in order to meet a competitor's reduc-
tion of ])rice; and the discounts so recorded shall, s(»
long as effective, apj)ly to all such resales to retailers
and there shall in no case be any individual variation or
variations from the discount or discounts so estab-
lished.

Section .3. Each resale by a jo}»})er or sub-jobber
under this merchandising i)lan shall be evidence<l l>y an
itemized invoice.

Section 4. Xothing in this Division R contained
shall affect or modify the provisions alcove set forth in
Division A in relation to dro]) shipment sales.

Section ."), X"o jobber or sub-jobber shall sell ci
gars directly to tin* consumer exce|)t thi'ough an estab-
lished retail department and in compliance with the
provisions of this meichandising plan in relation to
retail dealers.

C.
Sah's htf Urfaili'is.

Section 1. In the case of all cigars purchased by
retailers from cigar manufacturers, jobbers oi- sub-
jol)bers in connection with which a retail price shall
have ])een recorded by the manufacturer as herein-
above |)rovided, the retailer shall sell such ciirars at rr*-
tail at not less than th(> retail price so recorded, ])ro-

Th* Tobacco World

NBC

RED NETWORK

9t30-10 p. M., E. D. T.

New York WEAF

Hartford WTIC

Providence WJAR

Worcester WTAG

PoriUnd WCSH

Philadelphia . . WFIWLIT

Schenectady WGY

Buffalo WBEN

Piltsbur«h WCAE

•>30-9F.M., E.S.T.

Baltimore WFBR

Washington WRC

Cleveland WTAM

Detroit WWJ

Cincinnati WSAl

•t30-9 P.M., C.D.T.

Chicago WMAQ

7s30-tP.M., C.S.T.

St. Louis KSD

Des Moines . . WOC-WHO

Omaha WOW

Kansas City WDAF

\ ided, however, that (1 ) in the case of the sale at retail
of multiples of not less than ten units (except in the
case of cigars selling for less than five cents (.V) each)
a discount may be allowed of not more than y/c from
the retail i)rice, and (-) in the case of sales at retail
of boxes of 2.") cigars or more a discount of not more
than 8% from the retail price may be allowed unless
the cigar manufacturer shall record with the Council
and mark a box ])ric(» thereon involving a discount of
less than 8%, in which case the marked box price shall
be observed as a minimum, and C^) the retailer may
give not more than one ])ad of matches for each unit
sold, or live pads ])er box of twenty-tive cigars or ten
pads ])er box of lifty cigars sold. In the case of any
retailer granting a cash discount upon all i»urchases
made, anv sales of cigars shall be excluded in comput-
ing the cash discount to be allowed, or the amount of
cash discount shall be included in the price of the mer-
( iumdise sold in addition to the minimum prices herein
provided.

Section 2. r])on any sale to a consumer, situated
at the time of such sale 'in a State imposing a tax on
tobacco products or the sah' thereof (other than a tax
pavable bv the manufacturer) the amount of such tax,
if not ]m"id by the consumer, shall l)e added t() the
minimum i>rice herein ])rovided, whether the seller
>hall be located within or without such State.

Section .T Notwithstanding the i)rovisions of this
merchandisinu plan, any tobacco retailer may sell at
h'ss than the prices therein prescribed merchandise
sold as bona fide clearance or Ixma fide discontinued
lines or merchandise or imj>erfect or actually damaged
merchandise or merchandise sold upon the complete
liiial licpiidation of any business or merchandise do-
nated for charitable puri>oses or to unemployment re-
lief agencies, provided that all such merchandise shall
be advertised, marked and sold as such and that a strip
label shall be place<l across the inside lid label of box
uoods to be dispose<l of, stating the reason the said
merchandise is being s(»ld bel(»w the prescribed prices
therefor, ami provided further, that such merchandise
shall be <lisposed of pursuant to any regulation as to
I he mannei- of such disi)osal as shall be issued by the
Code Authority sulgect to the approval of the Ad-
ministrator.

Se(tion 4. Except as in this merchandising plan
nllierwise expressly provi(kMl, wherever under any of
ihe provisi<ms n\' "this merchandising plan any cigar
is required to be sold at retail at a minimum price,
such minimum retail price shall not be reduced directly

May r, tgs4

or indirectlv or bv anv device or subterfuge such as
tlie giving of any trading or merchandise coupons,
prizes or premiums or any other thing of value or
discount, rebate, refund, commission, credits or allow-
ances whether in the form of money or otherwise; nor
shall any retailer offer or extend si)ecial service or
j)iivilei»e to any customer whicli is not available to all
customers.

D.

M in i ni u m 1) isco u iits.
Fpon the recommendation of the Code Authority
established by the Code for the Cigar Manufacturing
Industry or the Code for the Wholesale Tobacco Trade
or the ('ode for the Retail Tobacco Trade or upon ap-
plication of any member of the Cigar Manufacturing
Industry or of the Wholesale Tobacco Trade or of the
Retail tobacco Trade and the ap])roval of such recoin-
mendation or application by the Administrator the
Code Authorities establislied by the said several codes,
shall, upon such notice and opi)ortunity to be heard,
if any, as the Administrator may refpiire deterinine by
joint' action minimum disc(»unts to be prescribed in
connection with sales of cigars by any member of said
Industry or Trades and such determination shall be
effective only upon the concurrence of all three Code
Authorities tind, subject to the further ai)])roval of the
Administrator, such minimum discounts shall be bind-
ing upon all such members.

E.
ProvLsifnis Applicable i<> All Sales of Cigars.
Section 1. Wherever any of the i)rovisions of this
merchandising plan provide for two or more discounts
from the retail price, such discounts shall be com])uted
separately and successively so that each succeeding
discount shall be computed upon the balance of the
retail juice remaining after the deduction of the next
])receding discount provided for.

Section 2. Any increase in the retail price shall
be api)licable as at the effective date of such increase
to all merchandise thereafter sold bv wholesale dis-
tributors or retailers, but wholesale distributors may,
notwithstanding any reduction of the retail price, tlis-
pose of existing stocks on the basis of the retail i)rice
|)revailing when such stocks were ac^piired.

Section 3. Nothing in this merchandising plan
shall hv construed to prevent the free and general (lis-
tribution of articles commonly used for advertising
]>uri)oses, except in so far as such distribution would
constitute, in efTect, an additional discount or reduc-
tion in price.

Eitablithed 1886

"BEST OF THE BEST"

^^^^^^1^ A. SANTAELLA & CO.

Office, 1181 Broadway, Naw York City

FACTORIES: Tampa and Ktp West, Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco meUow and amooth In character
and Impart a most palatable flavor

FUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
ftKTUN. AROMATIZE!. AOX FLAVOIS. TASTE SWEETENEBS

FRIES 6l BRO.. 92 Reade Street, New York

iv«(,'^»A^v?/]Lv»>«iv»yjtv»A'y«/:'AS^y«/ji^

■'.'•9j:'^9J'V^*j:'X9/:'X9j:;\9j:*

Classified Column

The rate foi this column it three cents (3c.) a word, with
a minimum charge ol seventy-five cents (75c ) payable
utrictly in advance.

^tr:0ri^!>f^l?^t!t7'vur:f>f^t'^^

rs<ttfS<ti9Crs<ttrs<v^rg\"rg<^rii\- yg^-

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580. "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON

Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Ptiff,"
manufactured by A. Ramirez & Co.. Post Office Box 1168. Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Re^stration Bureau, Sew^york" cj-I^

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

rte^istratioii. (see Note A),

$5.00

Search, (see Note B),

100

Transfer,

2.00

DnpHcntp r«rtific»ate.

2.00

Note A— An •Ilowance of $2 will be made to members of tbe Tobacco Mer-
chants' Association on each registration.

Note B— If a report on a search of a title necessiUtes 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.

NEW REGISTRATIONS

BARNACLE BILL:— 46,315. For all tobacco products. Stadkr
Cigar Co., Keokuk, lovk^a. April 7, 1934.

RESIL: — 46,416. For all tobacco products. La Floridana Cigarette
Co.. Tampa. Fla. March 7, 1934.

FOUR BAGGER:— 46,317. For all tobacco products. Harvev's
Syracuse, N. Y. March 27, 1934.

FINFAY: — 46,318. For all tobacco products. Harvey's, Syracuse
N. Y, March 27, 1934.

TRANSEFERRED REGISTRATION

PENGUIN:— 45,975 (T. M. A.). For all tobacco products. Regis-
tered December 28, 1931. by Christian Peper Tobacco Co.. St.
Louis, Mo. Transferred to Brown & Williamson Tobacco Corp.,
Louisville, Ky., April 10, 1934.

RENEWAL REGISTRATIONS

LA PATRONA: — 46,310. For cigars, cigarettes and tobacco. Con-
solidated Litho. Corp., Brooklyn, N. Y., March 30, 1934. (Orig-
inally registered April 18. 1911, by American Litho. Co., New York,
X. Y., predecessors of the Consolidated Litho. Corp.)

GRANDMONT:— 46,311. For all tobacco products. Consolidated
Litho. Corp., Brooklyn, N. Y., March 28, 1934. (Originally regis-
tered August 20, 1909. and October 18, 1910, by American Litho.
Co., New York, N. Y., predecessors of the (Consolidated Litho.
Corp.)

ENCANTO:— 46,312. I'or all tobacco products. Consolidated Litho.
Corp.. Brooklyn, N. Y., March 28. 1934. (Originallv registered on
January 8. 1909. by American Litho. Co.. New York, N. Y.. prede-
cessors of the Consolidated Litho. Corp.)

BLENMORE: — 46,313. For all tobacco products. Consolidated
Litho. Corp., Brooklyn, N. Y., March 28, 1934. (Originally regis-
tered on January 0, 1916, by .American Litho. Co.. New York, N. Y.
predecessors of the Consolidated Litho. Corp.)

GLENMORE: — 46,314. For all tobacco products. Consolidated
Litho. Corp., Brooklyn, N. Y.. March 28, 1934. (Originally regis-
tered on February 14, 1920. by American Litho. Co.. New York.
N. Y., predecessors of the Consolidated Litho. Corp.)

FORD PRICK ON CHESTERFIELD

OKI) FRICK, who was signed as announcer for
the Chesterfield series starring Rosa Ponselle,
Nino Martini, Grete Stueckgold and Andre
Kostelanetz' Orchestra and Chorus, has re-
covered from the throat infection which prevented him
from assuming his duties when the program started.
He took over the announcing assignment Monday,
April 23d, and will be heard every Monday, Wednes-
day and Saturday from 9 to 9:30 P. M., E. S. T. (E. D.
S.T. after April 29th).

Frick was stricken with a sore throat shortly be-
f()re the series began. It developed into a serious con-
dition necessitating a surgical operation. In the mean
time, Hugh Conrad has been announcing the programs.

COMMON SENSE

=

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

Phi la.. Pa.
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION cMZgd'ni.

LIMA OHIO Detroit, Mich.

A NatiorvWiAc Service Wheeling, W. Va.

UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA.

After all
nothing satisfies likc^
a good cigar

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING

Rtmcmbcr th

THE BEST

AEC

WOODEN

UYINC CICARSX

at Rcgjrdlets of Pncc I

lEST CIGARS I

DEN BOXES ^

THE TOBACCO WORLD

Vol. 54

MAY 15. 1934

No. 10

The TOBACCO WORLD has signed the President's agreement and
is operating under NRA Code, gladly and wholeheartedly co-operating to
the fullest extent in the Administration's effort to promote industrial re-
covery.

NOP] there was a rabbit who . . . beat a
turtle in a race. And wiiij^led his whiskers
while bra^^iii^ about it. Imagine his embar-
rassment when somebody asked him, *But
wasn't that a turtle you beat!' Is he any sillier than
those who crow about beating the crii)pled figures of
last year! After all, isn't it how fast the rabbit goes
that counts--not what the rabbit beats! If he's run-
ning slower than the power in his legs equips him to
run, he isn't running fast enough — no ivatter what

he's beating."

OW'S that for a devastating retort to the mis-
guided executives in the cigar business who
have been *' wiggling their whiskers while
bragging" about the way this year's figures
are bounding ahead of last year's! What an unan-
swei-able counterblast to the words of courage which
this business paper caught from the lips of Frank Will
and published as an editorial, thus earning the com-
n.iendation of our sciuare-shooting contemporary,
Tobacco Leaf. It is so pat an answer that it must
have been written, sez you, by one of the "clear think-
ing" cynics in the cigar business, whose name is legion
— you know, the men who go out of their way to un-
caVth some depressing conclusion from the most hope-
ful situation occurring in their industry. You're right,
it does sound like a cigar man's talk, but it isn't. There
are wet blankets in other lines, loo, and we have taken
the ])aragra])h at the head of this column from the
Amos Parrish Magazine, as quoted in the current issue
of Adrertishif] <{' SeUivg. In case you are unfamiliar
with the Amos Par rish Magazine, please be i)roperly
awed by the news that it is issued by an organization
whose business is the inqirovement of other people's
business.

Nothing would please us more than to regale you
with an exposure of the sui)erficialities of this '* clever"
paragrai)h as it would undoubtedly l)e done by Pinch-
iiitting Editor Will, but that gentleman is somewhere
out on the circuit **crowing about beating the crippled
figures of last year," so we'll have to do our best as a
substitute rebutter. Here goes:

8 A parable, the analogy between a rabbit beat-
ing a turtle and this year's business figures
beating last year's, is a swell example of cock-
eved vision *and distorted thinking. If you
must have a rabbit, Amos, then it might be all right
for you to conqiare his slow going over a muddy track

last year with a zippier speed over this year's faster
track. Or you might even stick to the turtle, compar-
ing the inq)rovement in its crawling, lumbering gait
for the two years. In anv case, vou must be satisfied
with one animal and conq)are its speeds, for it is the
performance of one industry, oi* one business, which
is involved. Your analogy would apply only to the
comparison of a fast-moving industry, like automo-
biles, to a slow-moving one, like, say, suspension-bridge
building. It has no relation whatever to the com-
l)arative performauces, over a two-year period, of one
business.

O, ANSWERING your question, Amos, the
whiskers-wiggling, bragging rabbit who beat
the turtle in a race is a lot sillier than those
who crow about beating the crippled figures of
last year. Representing the cigar industry as the
rabbit (we nuty be slow, but not (|uite as hnnbersome
as a turtle), the fact is that his speed was not any-
thing to boast about last year. Taking courage from
a faster s|)eed this year might be in the nature of
clutching at straws, were it not for the further fact
that last year's rate of sj)eed was not a solitary drop
from normal. It was slower than '32, w^hich was
slower than '31, which, in turn, was slower than '30,
and so on. In other words, our rabbit was gradually
growing tortoise-like in his movements. Is it silly,
my friend, to feel encouraged if our rabbit stops his
slowing-up process and starts to regain his old-time

speed f

FTER all, isn't it how fast the rabbit goes that
counts — not what the rabbit beats!" Of
course it is, Amos, but you know that the most
satisfactory way to determine the rabbit's
^]»eed is to conq)are this year's records with last. As
a matter of infornuition, we'd like to know your method
of determining how fast the rabbit is going. I'ertainly
you don't tell us when you say, "If he's running slower
than the power in his legs etpiips him to run, he isn't
running fast enough — no matter what he's beating."
We have no patience with those who are content to
lean on the alibi of "conditions" to explain a poor
business which might more properly be traceable to
laziness, incom])etence, lack of initiative, lack of re-
sourcefulness, or any number of other causes, but we
;ne not blind to the circumstance, as Amos Parrish
seems to be, that the speed of a horse, or a rabbit, or
a business, is affected by the condition of the track
and the weather and other influences. We .just don't
believe that High Quest would have set a new Preak-
ness record at Pimlico last Saturday if the track had
been heavy and the sky overcast, no matter how fast
"the poww in his legs equips him to run."

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B HanSns Secretary. Office, 236 Chestnut Street. Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
TbYe onl?to th^rengaged ta ^ industry. $2.00 a year, 20 cents a copy; fordgn, $3.50 a year. Entered as second-class mail matter,

December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

i

I

F THE puii)ose of the parable was merely to
criticize us hopeful souls for jubilatiu^ over
an improveniciit wliich should be accredited,
not to any stron.i'er elTort on the part of the
business racer, but entirely to a faster business track,
then Amos Parrish is still wron,i>headed in his ar-
raij»mnent. The taster the track becomes, the faster
will be the individual contenders, and, inevitably, the
faster the average for the entire field. Doesn't that
seem like a more sensible way to interpret the com-
parative figures, Amos!

X TIMS connection, it is sij2:nificant that the
owners of the cigar business stable from
which emciged the one-and-one-half-year-old
tilly ])ace setter over last year's muddy track
(Bayuk Phillies, out of Bayuk Philadel})hia Perfecto,
by Philadelphia Hand-made) are loudest in their ac-
claim of this year's faster track. All their promotion
last year had for its object the speeding u]) of the
cigar business track for all, on the logical principle
ihat the easier going would help their own entry to
tiavel faster.

You've Met Miss Sellers. Remember?

TOP in at one of the Marbern chain stores for
some cigars (any old kind), and it's a two-to-
one bet that vou'll come out with a Bavuk
product unless you are determined that you
want some other brand before you go in." Thus spoke
a visitor to the office this morning. He was so im-
pressed by his own experience that we felt obliged
to see this super-salesmanship working and to find out,
if possible, the "how come" of it. That exphiins our
ante-luncheon call at the Marbern store just around
the corner, at 50 South Second Street, one of the out-
standing stores of the chain.

As readers of this publication know, this Marbern
branch is presided over by that dynamic personality,
Miss Sellers, as store manager, and with a very able
and i)leasant assistant The store is a model for neat-
ness and the completeness of its varied stock. If you
are fortunate enough to arrive at a time when Miss
Sellers is not busy with another customer, try asking
her for something you would hardly expect her to have
in stock. The chances are that she will surprise you
by having it right where she can reach it without any
unnecessary steps, or if. such a thing should happen
that it is not in her complete stock you will be the ex-
ception if you walk out without something **just as
good", for Miss Sellers' long experience behiiid the

retail counter has given her a knowledge of various
brands and products that makes her competent to sug-
gest the right article for your requirements.

We do not hesitate to state that if there were more
sales people of the calibre of Miss Sellers, there would
not be such a cry of poor business among the retail
trade.

But what has all this to do with the object of our
visit to the store, the discovery of the reason for the
selling of Bayuk brands there in gratifying volume!
Well, according to Miss Sellers, it is all* the result of
an address to the Marbern sales force last week by
E. R. Sharrock, local sales nuinager for Bayuk Cigars,
Inc., at Marbern headquarters, 103 Church Street. His
tidk had to do with present-(lay requirements of be-
hind-the-counter salesman. Mr. Sharrock 's long ex-
perience in the retail field (pialifies him as an authority
worth listening to and heeding, and his genial person-
ality enables him to gain the undivided attention of
his listeners so that his message becomes unusuallv
effective.

If you want to know why business men from all
sections of the city j)atronize the store at 50 South
Second Street, there you have it. We congratulate the
executives of the Marbern stores for having had the
foresiglit to obtain the services of a store manager of
such a high caUbre,

10,000 Puerto Rican Sign-up Contracts

J. B. Gil)bs, of the Tobacco Section, has been in
charge of the sign-up, aided ]>y five district supervisors
and by agricultural agents. After the contracts have

HK SKiX-UI* of contracts in the tobacco adjust-
ment i)rogram for Puerto Kico, the first such
plan to be put into effect for an insular posses-
sion or territory of the United States, has been
completed with a total of 10,000 contracts offered by
producers, it was announced todav bv the Tobacco Sec-
tion of the Agricultural Adjustment Administration.

The sign-up has placed under contract practically
all Puerto Rican producers who are growing tobacco
this season. This includes approximately 90 per cent.
of those who raised tobacco during the years 1929-1934,
the base period under the contract.

The contracts offered to Puerto Rican producers,
by which curtailment of the crop being harvested and
the acreage to be planted next season is sought, require
that growers leave unharvested all of the second and
third crops on their acreage this season. For this re-
duction growers will receive payment at the rate of
$10 per cuerda (1.01 acres) where the crop is harvested
by "priming'' or picking individual leaves, or payments
of $15 per cuerda where the crop is harvested by stalk
cutting.

been examined and accepted for the Secretary of Agri
culture by these officials, they will be sent to Washing
ton for final api)roval and pavment, probablv about
July 1st.

Puerto Rican growers aie also asked to reduce
acreage planted for the 19.^4-19.*?.') cro|), with a choice of
curtailing acreage by 40 }>ei- cent., with two crops to Ik?
harvested; or by 2.') per cent., with oidy one <'rop to be
harvested. Rental ]»ayments of $.'{0 per cuerda on land
taken out of pro<luction, and an a<ljustment jiayment of
30 per cent, of the market value of the crop, will be
made.

Approximately $l,7r)0,(WK) will !)e distributcMl to
producers participating in the 19.TM9.'U and 1934-193.')
program. The contract contains aii option by which
reduction may l>e required in 193r)-1936, if held neces-
sary by the Secretary of Agriculture.

Tk€ Tobacco World

Flue-cured Growers May Increase

Acreage or Production

Unfavorable Weather Conditions Prompt New Ruling

RODUC^ERS partici])ating in the 1934 adjust-
ment jirogram for flue-cured tobacco are of-
fered an opi)ortunity to increase acreage or
production of tobacco above the amount allot-
ted under the terms of the contract, according to an
administrative ruling just announced by the Agricul-
tural Adjustment Administration. Under the ruling,
issued because of unfavorable weather conditions in
some sections of the flue-cured tobacco belt, producers
may increase either their acreage or production, or
])oth, to as much as 80 per cent, of their base, instead
of the 70 per cent, allotted under the contract.

Producers who take advantage of this ruling will
receive smaller payments than those who grow and
market only 70 per cent, of their base.

Where acreage exceeds 70 per cent, of the base,
one-third of the amount of rental y)ayments of $17.50
per acre would be deducted from the adjustment pay-
ments. The making of rental payments will be com-
pleted and all deductions will be made from the adjust-
ment payments due after the 1934 crop is sold. Where
the amount of tobacco sold exceeds 70 per cent, of the
base tobacco ])roduction, the rate of adjustment pay-
ments will be varied in accordance with the amount of
tobacco sold.

In explaining the ruling, J. B. Hutson, chief of the
Tobacco Section, said: '*We are giving growers this
opportunity to grow and market a slightly larger quan-
tity of flue-cured tobacco because we believe that under
the conditions which have recently developed it will
result in more total income than would be obtained from
a smaller crop. Domestic consumption of flue-cured to-
))acco has increased during the past few months, and
the exi)ort movement has been larger, particularly dur-
ing the past two months, than during the corresponding
])eriod of either of the two preceding years. Although
most of the increased exports have gone to increase
foreign stocks rather than into consum})tion, it appears
that the decline in the consumption of flue-cured types
noted during the past two or three years has been
h(»cked, at least in some foreign countries.

"With favorable weather conditions, it would have

been possible to have obtained the production needed
from the acreage originally contemplated. However,
with unfavorable weather conditions we believe a
slightly larger acreage to be advisable.

"At the time the contract was drawn it was not,
of course, possible to anticipate exact cro]) conditions
during the season. However, the ruling demonstrates
the flexibility of the adjustment program in adapting
itself to changes which may occur, and will enable pro-
ducers to adjust their acreage and production to fit
conditions as they have developed. No doubt many
growers will find it to their advantage to continue with
the reduction originally planned and receive the larger
rental and adjustment payments. Perhaps as many, or
more, will find it to their advantage to grow and market
80 per cent, of their base production, and accept the
reduced payments.

"If half of the growers market 80 per cent, of their
base production and the remainder market 70 per cent,
of their base production, the quantity sold by growers
signing contracts would be approximately 500 million
pounds. This would leave us with a crop this year
about as much below the level of consumption as the
crop of last year exceeded that level, which is the situ-
ation conteinplated in our production adjustment pro-

gram.

(•

"linfavoraWe weather conditions also ])revail in
some sections in which other types of tobacco are
grown. However, no change is contemplated at this
time in the allotments to growers of other types. The
supplv situation is less unsatisfactory in the case of
most other tvpes than is true of flue-cured tobacco. The
excess supply, that is, the stocks in addition to the
normal stocks, in the case of flue-cured types is suffi-
cient to last about three months. In the case of the
other types, the excess supply is sufficient to last from
six months to one vear and six months, the latter being
true in the case of Burlev and some of the cigar leaf
tvpes In the case of these types with the larger excess
supplies, a crop materially below the quantity allotted
under contracts would result in no shortage of to-
))acco."

Co-operating to Protect Manila Prices

A. BOND, Manila Tobacco Agent in this coun-
try, and his co-agent, David F. Morris, who
is now engaged in an extensive tour of the
Midwest, are operating under cabled instruc-
tions from Juan Posadas, (Collector of Internal Rev-
enue, to report every instance which may come to their
attention of price-cutting below the limits recently an-
nounced bv (Jovernor General Frank \Iurphy. Gov-
«rnor General Murphy has announced his intention of
•*cracking tlown" on manufacturers who ship inferior
grades of Manila cigars to the United States to un-
dersell corresponding grades of cigars made by Amer-
ican manufacturers.

May IS, I9S4

In backing up the Governor General, Collector
Posadas issued a circular announcing that he would
refuse to ])ass for shipment to the States cigars to be
sold for two for five cents which were priced at less
than $16.50 in States which have cigar taxes, and
$17.00 in tax-free States. The only exception concerns
damaged cigars already here.

The two-fold reason given by Collector Posadas
was as follows: First, he is anxious to protect the good
name of Manila cigars in the United States ; second,
he wants to guard against disturbing stable market
conditions here at a time when the re-establishment
of business prosperity is the country's first thought.

1

■1

I

I

"IT WON'T BE LONG NOW"

By William A. HoUings worth

T IS hard to soo liow anything' could arise at
this late day to })ivveiit final approval of the
retail tobacco Code within the next few days.
The Code Committee of Retail Tobacco Dealers
of America has V)een busy in Washinj2:ton this week
conferring with officials of the National Recovery Ad-
ministration for the purpose of ironing out a few minor
differences as to the wording or exact content of cer-
tain paragraphs. This work is now practically com-
pleted. The truth is that every factor or problem con-
nected with the retail tobacco business has been thor-
oughly covered by N. R. A. and the Code Connnittee.
Tins Code, renien'i]>er, has been under practically con-
stant consideration l)y X. R. A. for more than ten
months. Few Codes liave been held so long for
analysis and scrutiny; and ours is now one of the few
larger industries without a (^ode.

^ During the past ten months the retail tobacco Code
Connnittee has gone through the public hearings on
the Code. It has sat in numberless conferences with
individual officials and with boards and committees of
N. R. A. On its own initiative and in resi)()nse to
requests from X. R. A. it has assembled, analyzed and
submitted a vast fund of facts and statistics on all con-
ceivable phases of our industry. X. R. A., we feel sure,
has before it material that tells it everything that is
known about the retail tobacco business.

X. R. A. officials have ex])ressed themselves not
onlv as appreciative of the Code ConnnitteeV attitude
and work, but also as satisfied with the provisions of

the Code.

When vou consider, therefore, that General John-
son has repeatedly stated his desire to have every
industry of any imi)ortance under a Code at the earliest
possible date, there is no reason on earth, so far as we
can see, for anybody with the country's best interests
at heart to expect or to fear further delay in the ado]v
tion of the retail tobaccrt Code.

That is why I say it would be difficult, ])ractically
impossible to imagine how anything could come up at
this stage to postpone the Generars proni]»t a])i)roval
of the document and the President's signing it and
making if a ])art of the law of the land.

MINIMUM PRICES FOR SHADE TOBACCO

SCHKOrLK of minimum sale ]>rices for Con-
necticut vallev shade-grown tobacco which is
expected to give growers returns of approxi-
mately *H) per cent, of fair exchange value, or
an increase of 25 pt-r cent, over ])rice8 of last season,
lias been ai)pr()ve(l ()> Secretary of Agriculture Henry
A. Wallace. The prico schedule will operate in con-
nection with a marketing agreement and license under
which handlers of this type of cigar tobacco are now
operating.

The minimum ])rice schedule was formulated and
submitted to the Secretary by the control committee
in charge <>f supervision of the marketing agreement
and license. The present fair exchange value for this
type of tobacco is 87.78 cents per pound. The farm
price for tliis type (hiring the 1932-33 season was fifty-
nine cents per pound, or twenty-eight cents below
present fair excliaige vahie. The price .schedule now
in effect represents an increase of approximately 25
per cent, over prevailing prices of last season. The

increase is expected to bring farm prices for this shade
tobacco to approximately 90 per cent, of fair exchange
value.

The minimum prices apply to sales by licensees
who are themselves growers of the greater part of the
t()l)acco. ^lost of the remaining growers have arrange-
ments whereby their tobacco is handled for them un-
der joint account or on a commission basis by the
licensees. Thus, the prices received by licensees con-
stitute in almost every instance direct returns to

Musings of a Cigar Store Indian

growers.

W J K PEPPING FOR G H P

^HE

K Will-Jenks-Kynett Pep squadron is en-
gaged in ])reaching thegospel of optimism over
tlie immediate future of the cigar business
generally and the outlook for El Producto and
La Azora cigars specifically, to enthusiastic meetings
of salesmen operating within a sleeper-jump of G. II. P.
headquarters in Philadelphia. Last Thursday night
(the 10th) they sj)ellbound the men of Daniel Lough-
ran & Co., Inc., in Washington, at a meeting attended
also by the salesmen from the company's branch in
Baltimore. On Saturday morning, the siiles force of
the Scranton Tobacco Co., got a shot of the now famous
Dr. Will's Anti-Blues Serum. Pittsburgh and Buffalo
are booked for this week. At each of these general
sales meetings, addresses are made by Frank P. Will,
executive vice-president of G. H. P.; D. A. Jenks, as-
sistant general sales manager; and H. H. Kynett, of
the Aitkin-Kynett advertising agency, who is respon-
sible for the company's "Kynettic" salesmanship in
print.

Incidentally, the comi)any's business in April was
extraordinarily good, thank you. And that ai)plies to
factory shijunents and retail sales as well, G. H. P.
having a <|uick reaction on the latter through the com-
j)an\ 's nine branches, giving a cross-section of con-
sumer business from Maine to the Twin Cities.

CHECKS TO MARYLAND GROWERS

HE first of the rental payments to growers who
have signed contracts to reduce their 19.*}4
acreage and production of Maryland tobacco
by 25 per cent., were disl)ursed on May 4, it
was announced by the tobacco section of the Agri-
cultural Adjustment Administration. The initial block
of checks, representing a total of $18,390 to producers,
covered 379 contracts which offered 919 acres of re-
duction.

The adjustment contract for Maryland tobacco was
designed principally to reduce production of the lower
grades of this ty]K» of tobacco, which make up the
greatest portion of the existing surj^lu^- A total of
564 contracts have been signed by growers.

Two payments are to be distribut<»d to Maryland
tobacco growers. The first, or rental payment, now
being distributed, is at the rat-e of $20 per acre for each
acre retired from tobacco production under tlie con-
tract. After proof of compliance to the provisions of
the contract have been presented by producers, an ad-
justment payment, at the rate of not less than 25 per
cent, of the calculated value of the tobacco which might
have been grown on the rented acres, is to be distrib-
uted.

Tkg Tttbocco World

By Chief "Young-Man-Smoke-Cigars"

0 MUCH interest has been evinced in our
transcription of passages from John L. Mor-
rison's **The Passing of the Wooden Indian"
in September, 1928, Scribner's that we are
encouraged to add the following from the same source:
"Mr. R. Chapins Comoy, 72 Roseberry Avenue, Lon-
don, E. C. 1, tells me there are many finely preserved
figures of Highlanders still to be seen in England.
;Niost present-day Londoners will remember the old
Highland figure which stood outside the shoj) door of
W. Lawrence at the top end of Tottenham Court Road.
During the celebration of the South African War this
magnificent figure was seized by the University Col-
lege hospital students and carried shoulder high
around the West End, and it was only with great diffi-
cultv and by the assistance of the i)olice that Mr.
Lawrence was able to secure it. When the premises
were demolished, about ten years ago, the figure moved
to the doorway of Messrs. Catesby's, l^td., thereby los-
ing caste, being now *in linoleum' and not the tradi-
tional snuff and tobacco.

CS3 ft] C?3

XOTHER figure is a giant with fixed and stony
expression which has for many years met the
gaze of i)assers-by at Frederick Wright's, 112
High Street, Ch'eltenham, while an equally
characteristic one adorns an old tobacco business in
Whitefriars Hall, near to the street bearing that odd
name, *The Land of Green Ginger.' The only Sir
Walter Raleigh the writer knows of is a splendid
specimen at the doorway of the Keystone Tobacco
Company at the Holborn end of Kingsway, W. C,
London. A fine *black boy' sign more than one hun-
dred years old can be seen at the sho]i of Messrs. Wil-
son & Companv, 21 Barbican, E. C. However, the
sign of this house has always been the ancient three
tobacco-rolls. The roll sign is freciuently to be met
with.

CS3 CJ3 CjJ

HE wooden Indian reached his greatest vogue
in the late fifties, the sixties, seventies and
eighties. Bulls' head or steer-horns proclaimed
the butcher's shop, menacing bears furriers'
showrooms, and no saddlery shop sidewalk was with-
out its piebald or calico horse. There were watches,
boots and shocking stockinged legs, the clothier s
dummv bedizened by a twelve-dollar non-shnnkable
suit. A gigantic hat frequently made known the hat-
ter's place of business. Pedestrians had no right ot
way on sidewalks; his path was disputed by vegetable
offerings, displays and show figures, while sides ot
beef hung outside, ghastly and naked, whereon flies
held conventions, enormously attended, with only a
small proportion of the delegates falling victim to the
flypaper offerings. It was the era of the fly-brush, but
not the fly swatter, as crystallized in the epochal classic
of the grieved customer who bought a wedge ot ap-

May IS, I9S4

l)arently black currant pie, only to find it custard. The
Chicago, San Francisco and Baltimore fiies took nearly
all the wooden Indians of those cities to the happy
hunting ground. Then came on regulations as to side-
walk obstructions, and this, coupled with the advent
of the chain stores, was the greatest blow the wooden
Poor Lo ever received, and drove him from his ])ictur-
esque duties.

^ ^ ^

HE latter days of the vanishing tribe have
brought varied fortunes. Some, as that
Bleecker Street giant— more than nine feet —
have found good homes on country and sub-
urban estates, standing majestic amid the rhododen-
drons, and a few watch in city back lawns. Juvenile
Wild West attacking forces have done some to death
and others to disfigurement for life. College humor
is responsible for not a few absent faces; as are 'Sweet
Adeline' homeward-bound groups. Marble-hearted
owners have occasionally sold their braves for money.
A striking, six-foot-eight metal figure, made by Henry
Dibblee, Chicago, faces the Black Hawk trail at Rock-
ford, III. The noble Indian with shield and spear at
Bush & Trexler's, Philadelphia, was, in 1914, sent to
the hai)i)v hunting ground through fire, after being
cruelly hacked to i)ieces by his owner. The Bucks
County, Pennsvlvania, Historical Society houses
twentv.

ft

Ct] Ct3 Ct3

ESTIXG ])eacefully in the museum of the
Western Reserve Historical Society, Cleve-
land, is an Indian that once disappeared from
view and knowledge of all men. Years later
workmen emploved in the excavation for the Union
Trust Companv building uncovered a hand and,
shocked by the* ghastly sight, stampeded. The fore-
man and Volunteers completed the exhumation and
brought to life a wooden Indian, who proved to be
none'other than the old Erie Street warrior of (Jregor
Albert.

Cj3 Cj3 £t3

HE lone Indian of Chicago, 'Big Chief Me-
Smoke-Em,' is a splendid specimen of \v(»(Hlen
Indian sculpture. He has background, liaving
been modeled from an Iroquois chief. Henry
Hand, son of the original owner, declares his father
told him the Indian was made by one ot the world s
cn-eatest carvers, and that thousands of real Indians
have testified, with looks, nods, grunts, words and pur-
chases of tobacco, to Me-Smoke-Enrs resemblance to
the chief who served as the artiste model. Descend-
ants of these Indians, when tliey come to Chicago,
never fail to pav the big chief a visit. Me-Smoke-Em

went through the great Chicago fire, rescued from time
to time hy his owner, and lie now liokls a i-ifle that
was used by one of the pale-faced sharpshooters
against the savage Indians in the massacre at old Fort
Dearborn.

CJ3 CjJ Cjl

AXHATTAN'S sole chief— Phillips B. Thomp-
son's— was saved from the police by a recessed
property line, 4r)th Street just east of Fifth
Avenue. It was recently moved to Madison
Avenue. He's an outlander from Great Neck. Annie
Barrett's Pocahontas, forty years on Water Street, is
a native of Cherrv Street.

Cj3 CS3 CjJ

HIEF SEMLOH, America's farthest-west, and
California's oldest, Indian, sentinels the to-
bacco shop of S. E. Holmes, San Francisco.
He is a Manhattan and a Forty-niner, setting
out via Cape Horn for Maryville, stage center and out-
fitting point of the gold rush, where he arrived in 1850.
After sixty-seven years he left the gold fields for the
bright lights of Powell Street.''

FIRST CHECKS FOR BURLEY GROWERS

HE writing of checks, to cover rental jiayments
of $20 per acre of reduction to growlers who
have signed 1934 Burley tobacco adjustment
contracts, has started and an initial block of
947 checks, representing $24,334, is in the process of
disbursement, it was announced by the tobacco section
of the Agricultural Adjustment Administration. These
first checks which initiate the distribution of ai)proxi-
mately $15,000,000 in rental and adjustment ])aymenls
to 95,000 growers of Burley tobacco who have con-
tracted to reduce 1934 acreage and production from
one-third to one-half of their base, go to participating
growers in Smith County, Tenn. The contracts for this
county were delivered to the Agricultural Adjustment
Administration on May 2, by X. B. Morgan, county
agent.

To date, a total of 4276 Burley tobacco contracts,
calling for disbursement of $178,132 have been ad-
ministratively approved and are now in the process of
final audit. These contracts, which offer 9900 acres of
reduction, are distributed by states, with rental pay-
ments involved, as follows: Kentucky, 1960 contracts,
$121,150; Tennessee, 1136 contracts, $28,620; West
Virginia, 1144 contracts, $27,980; and Virginia, 36 con-
tracts, $382.

Thus far 14,453 Burley tobac<*o contracts have been
received in Washington and recorded by the contract
records section. As producers may choose to reduce
acreage and production by either one-third or one-half,
with several options as to base acreage, the amount of
reduction pledged cannot be accurately determined
until all of the contracts have been tabulated.

Charles Bobrow is promoting Bold in Western
Pennsvlvanina.

SCRAP AGREEMENT TENTATIVELY APPROVED

MARKETINCi agreement under which four to-
bacco companies would agree to purchase at
least an aggregate amount of 18,500,000
pounds of stemming grades of cigar-leaf to-
])acco at prices approximately 100 per cent, higher
than prevailed last season, have been tentatively ap-
l)roved by Secretary of Agriculture Henry A. Wallace.
The agreement is now being submitted to Bloch Broth-
ers Tobacco Company, Liggett and Myers Tobacco
Company, P. Lorillard Company, and Scotten-Dillon
Company, the contracting buyers, for their signatures.
These companies manufacture 85 to 90 per cent, of the
scrap chewing tobacco, for which the grades of tobacco
covered in the agreement are used.

The agreement would be applicable to tobacco
grown by producers in New York, Pennsylvania, Ohio,
Indiana, Minnesota, Wisconsin, Connecticut, Massa-
chusetts, New Hampshire and Vermont.

The average minimum prices to be paid for the
tobacco, which the companies would agree to purchase
between December 1, 1933, and June 30, 1934, are:
6 cents per pound for 1933 crop tobacco purchased
direct from growers ; SVo cents per pound for 1933 crop
tobacco purchased from co-operative marketing asso-
ciations ; 7 cents per pound for tobacco of crops prior
to 1933, not stored in a tobacco warehuse, if purchased
from growers, or 7^/^ cents per pound if ]3urchased
from co-operatives; 8 cents per pound for tobacco of
crops prior to 1933, stored in a tobacco warehouse, if
purchased from growers, and 8V2 cents per pound, if
purchased from co-operatives.

The differential of J^ cent per pound in the price
of tobacco purchased from growers and that purchased
from co-operatives represents the saving to buyers in
dealing with an association of producers. The differ-
entials based on the age and method of storing the
tobacco are devised to compensate for the loss in
weight accomj)anying storage.

The proposed prices are almost twice those pre-
vailing last year, and are approximately 50 per cent,
higher than prices paid this season before the first
conferences with buyers were held in development of
the tentative agreement.

The amounts which each of the contracting firms
would agree to purchase under the agreement are:
Bloch Brothers, 3,000,000 pounds ; Liggett and Myers,
4,000,000 pounds; P. Lorillard Company, 7,500,000;
Seotten-Dillon Company, 4,0()0,(K)0 pounds. This total
<iuantity, according to oflScials of the tobacco section
of the Agricultural Adjustment Administration, is
somewhat larger than the 1933 production of these
grades, and represents a greater volume of purchases
than was probable without an agreement.

In the event of a deficiency in the quantity pur-
chased, a penalty of 2 cents per pound of such defi-
ciency is to be paid the Secretary of Agriculture, and
in the event of a price deficiency in purchases under
the agreement, the difference between the minimum
price and the actual amount paid is to be paid to the
Secretary.

Buyers may purchase in the ordinary manner, but
are required to refrain from undue buyings of the
highest grades.

On acceptance by the contracting buyers and final
signature by the Secretary, the agreement will become
etfective, as of December 1, 1933.

CopyrUht, 1931, B. J. BejrQolda Tobacco Compsny

Watch out for the
signs of jangled nerves

You've noticed other people's nerv-
ous habits — and wondered probably
why such people didn't learn to con-
trol themselves.

But have you ever stopped to think
that jo«, too, may have habits that are
just as irritating to other people as
those of the key juggler or coin jingler
are to you?

And more important than that,
those habits are a sign of jangled
nerves. And jangled nerves are the sig-
nal to stop and check up on yourself.

Get enough sleep — fresh air — rec-
reation— and watch your smoking.

Remember, you can smoke as
many Camels as you want. Their
costlier tobaccos never jangle the
nerves.

FREE

Game Book

Cm«i •■¥« Ml ea to** mmvhI

Shows 20 ways to
test nerves — all il-
lustrated. Instruc-
tive and amusing!
Try them on your
friends— see if you
have healthy nerves
yourself ... Mail order -blank below with
fronts from 2 packs of Camels. Free book
comes postpaid.

CLIP AND MAIL TODAY!

R. J. Reynold* Tobacco Company
Depi. n2-A. Winaton-Salem. N. C.

I enclose fronts from 2 packs of Camels.
Send me book of nerve testa postpaid.

Name.

(PBINT MAMI)

street.

I

I

atw.

, StaU

OS*r azpire* Dveai^ftar 81, tMM

COSTLIER TOBACCOS

Camels are made from finer, MORE EXPENSIVE
TOBACCOS than any other popular brand of cigarettes!

SMOKE AS MANY AS YOU WANT...
THEY NEVER GET ON YOUR NERVES I

-ril^ir lk.ll CAMEL CARAVAN with Cm Loma Ortktstra. Stoopnagle and Budd, Connie ^"^'('i, j?^7 J^^^lSj^ **"!
lUNk in I ThmrsdayatfP. M.. EST— 8 P.M.. C.S.T. - " - -

7 P.M.. M.S.T.—6 p. M.. P.S.T.. over WABC Columbia Network

Tk4 Tobacco World

May 1$, 1934

i

■

mmm} rfli

y

m:{\\: !i:IP

iiiirjn III,

News From Congress

_ MND

Federal
Departments

i*« mfAn'''m\».>j>Mi

FAX lovoiiuo to the extent of !|^417,l)00,0()() a
\rar will ])v raised hv the new tax law sii»:ned
Mav 10 ]>v l^resident Roosevelt. From the
standpoint of the tol)aeeo industry, the most
iinitortant provision in the new law is that which a]j-
plies hiijfher taxes to the "lonir" cigarettes recently
put on the market — four of which can be cut by the
purchaser to ecpial a i)acka.ue of 20 — in an effort to
evade payment of part of the tax. The law continues
the $o per 1000 tax on cii^arettes wei»i:hin<i: not more
than three jmunds ])er 1000 and the rate of $7.20 per
1000 on heavier ciii^arettes, but ])rovides that "if more
than ()li» inches in leiiirth thev shall be taxable at the
rate provided in the precedinir ])aragraph ($3 per
1000), counting each 2-S inches (or fraction thereof)
of the length of each as one cigarette."

A feature of the law is a new ])ublicity provision,
under which every tax])ayer will be re(|uired to file
with his return a sei»arate statement showing his name
and address, total gross income, total deductions, net
income, total credits against net income and the tax
payable. This statement is to be made available for
public examination under regulations to be prescribed
l>y the Treasury Department.

Under the law, the Treasur\' will secure $95,000,-
000 a year from the readoption of the caj)ital stock
tax, $90,000,000 from the estate tax, .$(>,000,(MM) from
the gift tax and $2."),000,000 from changes in income
tax rates. Revision of the ca]utal gain and loss pro-
visions will return $:;o,(M)0,000, taxation of personal
holding comjianies will provide $20,000,000, and $10,-
000,000 will be secured f?'om provisions on reorganiza-
tions, $.'}r),000,000 from i-hanges in consolidated return
provisions, $.j,000,000 from |)artnership amendments
and $.'>H,000,000 from miscellaneous changes.

The additional revenue thus secured will be re-
duced by $22,O0O,O(MJ loss through relaxation of the
excise taxes on soft drinks, candy, furs and jewelry,
and the tax on produce futures.

CJ3 Ct3 Cj3

RdrFMEXTS on the (pjestion of wliether trav-
eling salesmen shall be j)laced under the codes
for their particular trades and industries will
be heard by Deputy Administrator Kenneth
Dameron of the National Recoverv Act Mav 24. At
the same time, consideration will be given the problem
of outsich' salesnKMi engaged in retail distribution,
whetlM'i' employed bv I'ctail stores or bv national or-
ganizations. The (piolion ot" code cciverage for trav-
eling salesmen has i>erplexe(l the lecovery administra-

From our iVASHINOTON BUREAU 62ZAlMU BUiLOING

tion practically ever since it began its work of codify-
ing industry. At the early hearings, representatives of
the salesmen asked that they be given a minimum
wage in the codes, but were refused by administration
ofticials who at that time were seeking to provide min-
inmm wages and maximum hours for unskilled labor
only.

As additional codes were submitted, however, it
was found that in many instances lengthy schedules
were incorporated fixing wages for all classes of
skilled labor, and the administration now believes that
it may be possible to provide a classification for sales-
men.

Cj3 Cj3 Cj3

PURRED by the approval of tlie President,
both Senate and House of Representatives are
moving to expedite enactment of legislation
authorizing the Reconstruction Finance Cor-
poration to make loans direct to industry and the Fed-
eral Reserve Banks to rediscount long-term commer-
cial j)aper. Approximately $750,000,000 in new capital
will be thrown into industry through the two agen-
cies, it is estimated.

Under an omnibus measure which has been pre-
pared, incorporating various proposals advanced in
i)ills introduced in both Houses, the Reconstruction
P^inance Corporation would be authorized to advance
money on promissory notes, acceptances, rediscounts
or otherwise, until January 31 next, to any established
industrial or commercial business to enable it to ob-
tain working capital, reduce or refinance its outstand-
ing indebtedness, or make plant improvements or re-
placements. Such loans would run for periods as long
as five years.

The Administration's approval of the project was
made known by Jesse H. Jones, chairman of the R. F.
U. in a letter to Representative Prall of New York,
chairman of the House subcommittee in charge of the
legislation.

''I am authorized bv the President to sav that he
favors the R. F. i\ being given authority to lend to
industry, and that he especially wants these smaller
and medium-sized industries given a full chance to sur-
vive on eciual terms with the larger industries," Mr.
Jones wrote.

"In advocating that the R. F. C. be authorized to
make such loans it is not with a view to duplicating
any similar authority given the Federal Reserve

ere it is
in a

nutshell

THERE are just about three
common-sense questions to
ask about pipe tobacco:

'First, is it made to smoke
in a pipe?

"Is it cut in big enough
flakes to smoke cool and
mild?

"Does it have a pleasing
flavor that leaves you han-
kering for more?

*'I guess I've been smoking
pipes for as many years as you've
been born, and when it comes
to pipe tobacco . . . here it is in
a nutshell. Smoke Granger.*'

u

ghCut

the pipe tobacco that's MILD
the pipe tobacco that's COOL

^.^Jolks secfn to like it

19J4. Liccrrr ft Mvtms To»acc» Co.

{Continued on Page 17)

to

Th€ Tobacco WoHi

May IS, igs4

it

About Smoking

By Emily Post

KKADKK fakes mo to task: "M\ dear Mrs.

ft

Post : Six months ago our club wrote you col-
lect ivelv askiu": that vou devote a Sundav ar-
tide to the discourtesies of those who smoke
unabashed in public places. It is not to be wondered
at that men no longer refrain from smoking in the pres-
ence of ladies, since many of those who othei'w^isc have
rhe appearance of ladies smoke even more offensively
than the men.

**In elevators, for example, men do at least take
their cigars out of their mouths and often try to keep
the smoke out of women passengers' eyes. But in
hotels women are likely as not to go on smoking, and
while talking with a friend pay no attention to where
or how they hold a lighted cigarette. I have several
times had my dress burned. Won*t you please explain
that both cigars and cigarettes should be discarded
before entering a crowded elevator ! Won't you please
protest against the impossibility of enjoying a meal in
a restaurant, or of going almost any place of amuse-
ment, when handicapped by pests who smoke! Isn't it
really high time to set definite rules for these offenses
to etiquette!

Cj3 Cj3 (JJ

X answer then, T agree that it is perhaps time
to define, within reasonable boundaries, the
politeness of smoking. But to the first protest
you make I must reply that it does not seem
quite fair to ask any man to throw away a perfectly
good cigar every time he gets into an elevator, nor even
that a woman must finish her cigarette before getting
into the elevator of a hotel. The smoke in the mezza-
nine seats at certain movies and at theaters that permit
smoking in the orchestra, is very trying to those of us
whose eves and throats are easilv affected. But the
answer is that we need not sit in these places if the
annoyance, whatever it be, overbalances the pleasure
that has induced us to venture among the smokers.

The first point that must be made is that in all
large cities the odds are against those of us who do not
like to smoke. If ten people hated it to every one who
liked it, that would be one thing; but where the smokers
greatly outnumber the non-smokers, I really think the
only thing we can do is to profit by the song about the
sneezing baby in the pepper-filled kitchen :

**I speak severely to my boy,
I beat him when he sneezes,

For he can thoroughly enjoy
The pepper when he pleases."

In other words, those who have not acquired the
habit of smoking might as w^ell make up their minds
that they can perfectly endure an atmosphere of smoke,
and be pleased al)out it, because they are going to have
to endure it most of the time.

29

UT while I agree that the few have no right to
interfere with the pleasure of the many, thero
are certain requirements of propriety and of
consideration for others that those who smok(»
nmst observe. First of all, it is unforgivable to lay a
cigarette, or cigar, on the edge of a table or other piece
of furniture, ever! Forgetting it and letting it burn
a charred groove on a table edge, or make a brown scar
on a marble mantel is merely the result of putting it
down on wrong places to begin with. Find an ash tray
to lay it on, or ask for one. Never press a cigarette out
without being sure that the object pressed on is in-
tended for that purpose.

Cj) Ct3 CS3

X THE category of mere annoyances are all
the untidiness of average smokers, such as
spilling ashes on the floor and knocking them
off into any and all of the parlor ornaments.
Surely you can look around for something that is ob-
viously an ash receiver, and, failing to find it, ask your
hostess. If she seems reluctant to provide you with fin
ash tray, or tells you she has none, stop smoking and
carry the offending object outdoors, if possible, or
wherever you can best kill it and bury it.

Another detail, vei*y hard to write about, is that
of the people whose skins seem to absorb the odor of
nicotine. On the other hand, it is true that others can
smoke incessantly and yet never carry a trace of nico-
tine with them. Their secret is probably that of
counter-balancing their smoking habit, with that of the
toothbrush and nail-brush habit. Excellent nicotine
jirecaution also is the use of long holders. Or even bet-
ter, a continual supply of fresh holders made of jiaper.
It must be added that the very long holder in the hands
of the inexpert is a little like the match head sent flyinu
by the reckless lighter, one is never sure when or what
may be burned by the lighted end.

(The foregoing is from Emily Post's daily column,
"Social Good Taste," appearing in The PhUndelphia
Inquirer.)

OLD GOLD'S "QUESTAMONIALS"

LTHOUGH the Old Gold radio program has
gone off the air for the summer months, a
strong advertising campaign will continue to
run in leading newspapers. Adding to its list
of outstanding advertising campaigns P. Lorillard
Company, early this month, inaugurated a new series
of "Questamonial" advertisements, featuring screen
and stage celebrities. The first advertisement showed
Adolph Menjou asking the question — **Why are Old
Golds so easy on the throat ... so cool and biteless!"
This inquiry the Lorillard Company answered in an
open letter. Other stars to be featured in this series
are Helen Hayes, George Raft and many others.

Old Gold's summer campaign is one of the most
extensive to be released in recent years.

Th4 Tobaeeo World

Dealers say:

"^El Producto appeals
to my pocketbook — it
always builds profitable
quality business."

H

iW». r. ciCA«co.,iKc.,rHiiJL,»A.

EL PRODUCTO

,/or real eitfoiitmat 1 Q cents

90% Of Growers Under Burley Contracts

ABULATIOX of reports from state offices in-
dicates that producers have offered to the
Agricultural Adjustment Administration
about 95,0(K) contracts for Burley tobacco
:i( leage and production reduction. These contracts
•over 90 per cent, of the eligible farms. The number
of contracts signed in the Burley sign-up campaign,
which closed February 17, is within 10,0()0 of the num-
l»er signed in the flue-cured tobacco program.

The distribution of signed contracts, by States, is
ipproximatelv as follows: Kentucky, 49,000; Tennessee,
2r),900; North Carolina, o500; Virginia, 5000; West
Virginia, 1400; Ohio, 5220; Indiana, 2400; and Mis-
souri, 900.

Approximately 3057 of the Burley contracts have
I. cell received bv tlie contract records section in Wash-
ington, and are'now being passed upon for acceptance
and approval for rental ])ayinents.

Adjustments noeessary to bring producers' state-
ments of acreage and production on their contract in
line with official acreage and production data have
In-en under way since the close of the campaign. In
>ome instances' where acreage figures appear to be
out of line contracts are l)eing held until actual meas-
nrement of the land can be made. The flow of the
contracts to Washington, and the speed at which the
pavments of $20 per acre on land taken out of produ^
tion will be distributed, depend upon the co-operation
of individual producers with the county committees in
adjusting contracts and correcting any errors, it was

May IS, 1934

pointed out by the tobacco section. The first contracts
to be cleared by state offices, the last step before con-
tracts are sent to Washington, are those in which
acreage and production figures have been substantiated
by acceptable documentary evidence furnished by the
producers.

The tobacco marketing cards, submitted by
growers, \v\\\ in most cases accompany the contracts
to Washington, so that allotments of production may
l)e made at the same time as are acreage allotments.
As rapidly as contracts are accepted these allotments
will be determined. Compliance with the acreage
allotment will be checked this summer, and compliance
as to the production allotment will be determined after
the 1934 crop is harvested.

In cases where all the merchantable tobacco of
the 1933 crop has not been sold, arrangements have
been made for the marketing cards to be held in the
county offices until appraisals of the unsold portion
have been made. The quantity of unsold merchant-
able tobacco covered by such an appraisal will be en-
tered upon the marketing card and may be used in
determining the base tobacco production. This ap-
praisal work will be done by appraisers of the tobacco
section.

The value of the unsold portion of Burley tobacco
as determined by appraisal will be entered upon the
marketing card in lieu of the net market receipts and
will be used as a basis for the first adjustment pay-
ment.

t3

Farmers' Tobacco Income Doubled

HE total iiieomo of farmers from tobacco ii:rowii
ill the Tnitcd States during the 1933-34 mar-
keting year will reach approximately 214
million dollars an increase of over 100 per
cent, over the retnrns from sales of the previous sea-
son, according to an estimate released by the tobacco
section of tlie Airricultural Adjustment Administra-
tion. Included in this estimate are payments amount-
ing to twenty-eight million dollars accruing to })ro-
ducers who operate under tobacco acreage and pro-
duction adjustment contracts. Market recei])ts for the
1933-34 sales season are ex])ected to total 18() million
dollars as against 105 million dollars for the 1932-33
season.

l^rices per i)ound for all types of tobacco combined
have averaged al)out 2o per cent, higher during the
current season than tluring the previous season, despite
the fact that the croi) offered upon the market this
year is about 200 million pounds, or 16 per cent., above
world consumption, while that of the 1932-33 sales
year was ai)i)roximately 200 million pounds below
world consumi)tiou.

The higher returns to producers liave been made
possible, officials of the tobacco section point out, be-
cause of the jjrompt action of a large ])ercentage of
tobacco growers in contracting to reduce 1934 pro-
duction as much below the level of consumption as the
crop marketed this year exceeds that level. Also,
domestic manufacturers have entered into marketing
agreements negotiated by the Agricultural Adjust-
ment Administration, in which they kave agreed to
increase prices to producei's.

Growers of rtue-cured tobacco liave enjoyed the
greatest increase in income, according to tlie tobacco
section. The 1933 crop of 73r3 million pounds, wliich
is more than 100 million pounds in excess of last
year's consumi)tion, brought growers about 112 million
dollars, or two and one-half times the returns from
the previous crop. In addition to increased market
receii)ts, over 100,000 growers of flue-cured tobacco

will share in the distribution of $8,000,000 in rental,
adjustment and piice-e(iualizing payments in return
for ])articipating in the program to curtain flue-cured
tobacco production by 30 per cent, in 1934.

The inccmie to growers of Hurley tobacco from
market receipts is approximately forty million dollars,
which is slightly more tlian these growers received
during the 1932-33 season. However, distribution of
flfteen million dollars in rental and adjustment pay-
ments to growers who liave signed contracts to reduce
Hurley tobacco proiluction in 1934, will begin within
the next few weeks and will increase the total income
by approximately 28 ])er cent, over that of last year.

Market receij)ts from tire-cured and dark air-cured
types of tobacco during the current season are esti-
mated to be fourteen million dollais and represents an
incicase of about ."),") per cent, ovei* the 1932-33 returns
to growers. Kenta! and adjustment payments of ap-
proximately $1,()00,000 will be distributed to growers
of these tyi)es of tobacco.

Income from sales of Maryland tobacco will be
increased by about 10 per cent., to a total of $4,(]00,000
for the current season. To this income will be added
aj)j)roximately $70,000 in payments to growers for par-
ticii)ating in adjustment plans.

Cigar-leaf tobacco growers' incomes from tobacco
sales during the IJKJ.'J-.'U season are estimated at $10,-
500,000 as com|)ared with $8,193,000 during the previ-
ous season. As a result of the 1933 adjustment pro-
gram for this type of tobacco in which 7') per cent,
of tlie growers participated, ])roduction was held be-
low consumj)t ion for the first time since 1!).")0, resulting
in a slight reduction in carry over. The cigar tobacco
adjustment plan is being continued for 1934, and it is
antici])ated that further reductions in acreage and
production will be made. In addition to the increased
returns from the sale of the 1933 crop, contracting
growers of cigar-leaf tobacco are receiving $2,500,000
in payments, of which over $1,(134,818 has already been
distributed.

All Georgia-Florida Growers Under Plan

('()Mi*LHTK sign-u]) of adjustment contracts,
covering KiO ])er cent, of the 1934 acreage of
rieorgia-Florida shade-grown, cigar-leaf to-
bacco, was reported by the tobacco section of
the Agricultural Adjustment Administration. The
contracts, olT<'red by all of the l.")!) growers who are
producing this \y])v of tobacco in 1934, will result in
restriction of production l)y one-third of the average
]>roduction for the i)ast five yea is.

The large pro]»ortion of the growers of this type
of tol)acco, who took jmrt in the cigar-leaf adjustment
jilan for 19.')3, were notified December 27 that the Sec-
retary of Agriculture would exercise his option under
the original contract to continue reductions in 1934.
At that time new contracts ratifying the o])tion, an<l
offering an opjiortunity for additional growers to par-
ticii)ate were issued.

For their co-operation in the lf)34 adjustment ])ro-
grani growers will receive approximately $120,000.
The first j»ayment will be at the rate of $30 i)er acre
on tobacco harvested, to be made before 8ei)tember 1.

'4

The second payment of $30 pw acre will be made after
proof of compliance to tin* terms of the contract has
been submitted by producers and accepted by the Agri-
cultural Adjustment A<lniinistration.

Acream* reduction for 1!)34 is brought alxml by
making an acreage allotment to each jiroducer. This
allotment i> equal to the average acreage from which
tobacco was harvested in the years 1929-33, inclusive,
unless the average acreage exceeds five acres. If the
average acreage exceeds five acres, the allotment
amounts to two-thirds of the average.

Pi'oduction is restricted under the contract terms
l>y requiring that the four top leaves of each tobacco
stalk Im' left unharvested. As the top leaves mak«'
iij) the lower grades, which constitute a large part of
the present excess supply, a selective reduction is
brought about.

<} rowers have been alloted a total of 2017 acres
on which tobacco can be grown this season, and i»ro-
duction is icstricted to a total of l,Hlf»,200 pounds, or
'j j>ei cent, below eonsumjition during the past year.

The Tobacco World

HIbAT)Eli«>MIA.

BAYUK BUSINESS BITS

HE following new distributors have been ai)-
pointed by Bayuk Cigars, Inc.: Beck & Mahl-
stead, Kenosha, Wis.; J. E. Goold & Co., Port-
land, Me. ; Rockland Wholesale Co., Rockland,
Me.; H. C. Shrink & Son, Ludington, Mich. ... In
conjunction with W. H. Schulte, B. S. (Bayuk salesman
to you) the KnaufT Cigar Co., Sheboygan, Wis., has
just completed a successful drive on Bayuk Phillies
for that territory. . . . Harry Catlin, associated with
the Bayuk sales* department, has just returned from
Chicago, bringing back with him glowing reports of
the increased demand being developed for Phillies in
the W'indy City through Zolla Brothers, the distribu-
tors. . . . B. W. Burnside has returned to headiiuar-
ters, after having spent four weeks in Pittsburgh,
hijrhlv enthused over the wav Bavuk Phillies continue
t«t forge ahead in sales in that sector.

Benjamin Lumley is away on a trip through north-
ern New Jersey in the interest of his brand, Garcia
y Vega, which has been show^ing a nice increase in re-
cent months.

James Heaney, sales representative for the Amer-
ican Tobacco Company, was in town last week piomot-
ing Antonio y Cleoj)atra cigars through Yahn & Mc-
Donnell. William Anderson, recently appointed sales
representative for the American Tobacco ('ompanv's
high-grade cigars, is doing a splendid job, and dis-
tribution and sales are increasing.

^Fannie Perez, of Marcelino Perez & Co., Tampa
manufacturers of Redencion and other high-grade clear
Havana brands, was in town last week, and visited
Vahn & McDonnell, local distributors. Now that busi-
ness definitely is on the ''up-grade" Mannie is wearing
that **I-tohl-vou-so" smile.

By one of the happy coincidences of business,
(icorge ZifTerblatt was calfing on the Linker (Mgar (V).,
ii! Louisville, on the day of the Kentucky Derby. Did
he see Cavalcade capture the turf classic? Dunt esk.
liefore returning to PhiUuh'lphia, he coNcred Indian-
apolis, diicago, Milwaukee and other distributing
points. Judging from the broad smile when he got
hack, he either ditl a thriving job on Habanello on the
trij)— or had a wad down on Cavalcade's nose — or
both.

Trade Notes

Medalist sales are showing an increase in this
market since the advent of the new and more generous
sizes.

Marcello cigars, one of the '* Independent" brands
featured and controlled by Yahn & McDonnell, are con-
tinuing their increase in popularity.

Cards are being featured in the better retail stands
throughout the city showing W^ C. Fields, famous
motion picture comedian, and Mr. Fields is telling the
world why Hollywood stars prefer Optimo cigars.

Yahn & McDonnell stands are featuring window
displays of the Sano cigar, cigarettes, and smoking to-
baccos' this week and new customers are being won for
this brand daily.

William Lesher, factory representative of John
Swisher & Son., Jacksonville, Fla., was in town this
week and visited Yahn & McDonnell, local distributors
of the King Edward.

John Flanigan, manager of the M. .1. Dalton store
at 617 Chestnut Street, is featuring a window display
of better grade pipes and smoking tobaccos this week
with considerable success.

George Stocking, Arango y Arango, is expected in
Philadelphia this week, and John Wagner & Sons are
ready for him with glowing reports of the increase in
Don Sebastian sales.

Polar cigarettes, the new mentholated product of
the P. Lorillard Co., are being featured in the stands
around the city and are being \vell received by con-
sumers. The new brand retails at fifteen cents a pack-
age of twenty cigarettes.

The Sweetwood cigarette holder is being featured
in the M. J. Dalton store, 617 Chestnut Street, with
good results. This holder consists of a wooden mouth-
piece to which is attached a paper holder for the cigar-
ette, and is packed in a sanitary cellophaned i)ackago
of four holders retailing at 10 cents per package.

15

f;

Mi

Filler and Binder Adjustment Approved

ECKKTARY of Ai^niciiltiire Henry A. Wallace
has approved a 1934 adjiistinent program for
filler and binder types of cigar-leaf tobacco,
announcing that he would exercise the option
contained in tlie 19oo adjustment contracts requring
acreage reductions to be continued this season. It was
also announced that growers who did not partici])ate in
the 1983 adjustment plan would be given an opportunity
to sign contracts.

The new program, it is estimated, will reduce the
acreage of filler and binder cigar-leaf types in the
Miami Valley, Wisconsin-Minnesota, Pennsylvania-
New York, and New Engalnd areas, to about 50 per
cent, of the 1932 acreage.

Pennsylvania-Xew York producers on the basis of
100 per cent, participation in this season's reduction
plan will receive a])proximately $1,3()4,000 in all pay-
ments for 1934 ])erformance.

The ])rogram offered for 1934 differs from the
original cigar-leaf tobacco program in that producers
now have the option of keeping either one-third, one-
half, or their entire base acreage out of production, and
have two additional choices in the determination of
base acreage.

Those growers who participated in the 1933 reduc-
tion program may obtain a *' supplemental first pay-
ment," amounting to $4 per acre, by accepting the new
revisions as a supplement to their original contract,
and submitting satisfactory evidence that payments
made to them last season were divided with share-
tenants.

All participants in the 1933 plan, who do not wish
to accept the revision as a part of their contract are
required, under the decision of the Secretary that the
program continue, to maintain the 50 per cent, reduc-
tion made bv them last season, for which thev will re-
ceive payments on the same basis as in 1933. Such
growers will not sign any supplement to their 1933 con-
tracts.

Contracting producers will be required to limit the
use of the land taken out of production of tobacco. No
crops for sale can be grown on such land, but feed or
food crops directly or indirectly for home consumption
will be permitted on one-half of contract acreage. The
remainder nmst })e left idle or can be j)lanted to erosion-
preventing or soil-improving croi)s. If no harvested
crop is grown on the contracted acreage, the entire
acreage may be used for pasturage of livestock for con-
sumption or use on the farm.

The total acreage planted to crops for harvest in
1934 in addition to the contracted acreage, cannot
exceed the acreage of 1932 or 1933, whichever is
greater, while the acreage of any basic commodity crop
on the farm cannot })e increased over that of 1932 or
1933, whichever is greater.

Other revisions carried in the supplement to
the contract require that there l)e no reduction in the
number of share-tenants on the farm, and provide for
equitable division of the second payment with tenants.
All new participants nmst sign the supplement.

The choices for base acreage in the 1933 contract
were as follows: (a) 80 per cent, of the average acre-
age planted to tobacco on the farm in 1931 and 1932;
(b) the entire acreage of tobacco in 1932, ])rovided that
this acreage did not exceed that of 1931 ; (c) tlie average
acreage planted to tobacco in 1931 and 1932, provided

i6

that the tobacco planted in 1932 was greater than that
in 1931. The new choices now offered in addition to the
old ones are: (d) two-thirds of the acreage planted to
tobacco in 1931 ; and (e) one-half of the acreage planted
to tobacco in 1930.

The first payment will be at the rate of $24 per
acre of reduction recpiired under the option chosen.
The rate of the second payment will vary according to
the market value of the crop harvested in 1934, and the
option chosen as to amount of reduction. In all cases
minimum payments })er acre are specified.

A grower who elects to reduce his acreage by 100
per cent, will receive payments on his entire base acre-
age; the first payment at $24 i)er acre, and the second
at $8.50 per acre. If the producer has participated in
the 1933 reduction program and becomes eligible for'thu
sui)plemental payment, he will receive $4 per acre in
addition to other payments.

A grower who chooses the 50 per cent, reduction
will receive payments on half of his base acreage ; the
first payment at the rate of $24 per acre, and the second
payment for each acre will be 40 per cent, of the aver-
age value of each acre of tobacco harvestcil by such
grower in 1934, wnth a minimum rate of $17 per acre.
In case the supplemental payment is received, it will be
made on one-half of the base acreage.

The grower who selects the oi)tion for 33-1/3 per
cent, reduction from his base will receive $24 i)er acre
on one-third of his base acreage in the first payment ;
with a second payment for each acre equal to 35 per
cent, of the average value of each acre of tobacco har-
vested by such grower from his base acreage in 1934,
with the minimum second j)ayment ])laced at $14 per
acre. The supplemental payment will be made, if the
grower qualifies, on the same acreage as the other pay-
ments.

TAMPA PRODUCTION INCREASING

Production of cigars, all classes, in Tampa fac-
tories during the month of April, 1934, totaled 23,664,-
496, as compared with 23,383,380 for the same montli
of 1933. March, 1934 production was 25,570,000 cigars.

A proposal to conduct a cigar slogan contest as .i
means of stimulating cigar smoking was voted down
at a meeting of the New York Leaf Tobacco Board of
Trade at a lively and well-attended meeting on May 10.

I. B. AVhite, manager of the (*igar Department of
John Wagner & Sons, has just returned from a trip
through eastern Pennsylvania in the interest of their
brands and reports a very successful trip. There is
evidence of a substantial increase in demand for Class
C merchandise, and their Monticello brand is enjoy-
ing its full share of this increase.

Twenty-three new members were added to the Re-
tail Tobacco Dealers of Philadelphia at a meeting in tin'
Hotel Adelphia on May 3. William A. Hollingsworth,
president of the Retail Tobacco Dealers of America.
Inc., came up from Washington to give the latest in
formation on the pending code. (\ Pickett, socn^tary
of the Retail Association of Druggists, spoke on the
necessity of organization.

Tkg Tobacco World

News from Congress

(Contimied from Page 10)

Ihiiiks, but to supplement that authority and keep open
a^ many avenues for such credit as possible.

"There is undoubtedly a need of credit for small
and medium-sized industries, and while some of the
loans will carry more than the usual credit risk, unless
the demand is met our relief ]jroblems will continue
In multiply. A dollar loaned is certainly better than
one given in relief, and such loans can be made with
111 tie ultimate loss.

''The R. F. C. has been dealing with all kinds of
(1 «'dit problems for more than two years, and while we
liavc no desire to continue lending a moment longer
than is necessary, there seems no good reason why our
experience and facilities should not be made available
1o this class of citizenship until credit is actually be-
ing otherwise extended."

FLUE-CURED GROWERS GET TWO AND ONE-
HALF MILLION

TOTAL of 40,379 checks, rei)resenting $2,626,-
r)22 in rental and price etpudizing payments,
had been disbursed up to April 24th to
growers parlicipating in the program to re-
duce by 30 per cenl. their 1934 acreage and production
ol' Hue-cured tobacco, it was announced by the Agri-
(iiltural Adjustment Administration.

Of the total checks issued, 32,390, amounting to
$1,359,975, are in payment for rental of acreage taken
nut of production, wiiile 13,989 checks totaling $1,266,-
r)4(), are price-equalizing payments, available to con-
tracting producers who sold their 1933 tobacco before
the marked rise in prices.

The payments were divided among states, as fol-
lows: Florida, $23,082 rental payments, and $41,111
price-equalizing payments; Georgia, $187,460 rental,
and $458,689 price J'qualizing payments; North Caro-
lina, $703,869 rental, and $325,561 price-equalizing
payments; South (*arolina, $181,888 rental, and $441,-
<i22 price-equalizing payments; and Virginia, $263,075
rental, and $161 price-ecpializing payments.

To date, over 86,200 adjustment contracts for flue-

• ured tobacco, together with 40,600 applications for
pi ice-eciualizing payments have been received in Wash-
ington and recorded by the contract records section.
Of those contracts received thus far, 69,370 have been
admiiustratively approved for payment, as have also

1,181 applications for price-equalizing payments.
Officials of the tobacco section expect that the bal-
nnce of the 105,000 contracts offered in the flue-cured

ii^ni-up will be received in Washington for examina-
tion and acceptance within the next few weeks.
<lrowers participating in the 1934 flue-cured tobacco
adjustment program will receive a total of approxi-
mately $17,000,000 in rental, adjustment and price-

• ••lualizing payments. Of this amount more than
^8,000,000 is being paid this spring.

Antonio v Cleopatra cigars are being featured in
Vahn & McDonnell stands, and other retail stands
lliroughout the city with four new sizes with punctured
' ads. This innovation is proving popular with the

CIGARS

P.

LORILLARD GO'S
Quality

2 ^^"^ S^

Cigars

Meeting the public's demand
for quality cigars
moderately priced

NEW

CURRENCY

CIGARS

2

for

5c

Our Other Popular 2 for S< Cigars

JAMES G. BLAINE • • POSTMASTER

I. A FRAOSA • SARONA • WAR FAGLE

lu

<liscriminating smokers.
A^fly '5, '934

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

JESSE A. BLOCH. Wheeling. W. Va ...President

JULIUS LICHTENSTTEIN. 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. SH ELTON. Washington. D. C Xl^^''**!^'^"*

WILLIAM T. REED. Richmond. Va X?"^''"^^*"!

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

RETAIL TOBACCO DEALERS OF AMERICA. INC.

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York. N. Y ....President

CLIFFORD N. DAWSON. Buffalo, N. Y Executive Vice President

JAMES C. THOMPSON, Chicago, III Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. Kew York City ••.••••;:■ •^'""I^^"*

MILTON RANCK. Lancaster, Pa ••F'"] X-"'d '•^*"!

D EMIL KLEIN, New York City Second Vice-President

LEE SAMUELS. New York City Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave., Newark, N. J ...President

ALBERT FREEMAN. New York, N. Y -F'"* Vice-President

IRVEN M. MOSS, Trenton, N. J Second Vice-President

A. STERNBERG. Newark, N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE r.-'A President

SAMUEL MAGID, 2001 N. Mervine St.. Philadelphia, Pa Secretary

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E ASBURY DAVIS, Baltimore. Md ..•••• President

TOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y Secretary

GEO. B. SCRAMBLING. Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

lOHN F BROWN President

HERMAN H. YAFFE, 301 Fox Building, Philadelphia. Pa Secretary

JUNE 1, 1934

Establithed 1886

"BEST OF THE BEST"

"•••'"'—' "' A. SANTAELLA & CO.

Office, 1181 Broadway, Naw York Citf

FACTORIES: Tampa and Ktp Wtat, Florida

OUR HIOH-OKADE NON-EVAPORATINO

OGAR FLAVORS

Make tobacco maUow and amooth in charactat
and Impart a moat palatable flavor

FUYORS FOR SMOKING and CHEWING TOBACCO

Write for Llat of Flavors for Special Branda
EMTUN. AIOMATIZBI. BOX FLAVOKS. PASTE SWEETENEIfl

FRIES ek BRO.. 02 Reade Street. New York

A»; ;.»y,':vty;:.V»yyA»y;',V»V,'l.Vt/;tX»y.'^VtA'tV»y^:.Vtvj;.V»A'lV»A''A»A'>t/,^^^^

Classified Column

The rate fot this column is three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c.) payable
strictly in advance.

^\:f)i\'rrec,ytir,y^\.yi\7ft<^yt\'rsCur(^'yt\-:rt\tf«;^,.^^^

ft^'o^^V.ri,

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan, 5915 Webster Street. Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, jEw^yoS'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 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 reportinf of raore
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 b«
made for every ten (10) additional titles necessarily reported.

NEW REGISTRATION
HAVA BOY: — 46,321. Vov cigars, cigarettes and tobacco. April 30
1934. Consolidated Litho. Corp., Brooklyn, X. V.

TRANSFERRED REGISTRATIONS
MELLO-GLO: — 46,296 (Tobacco Merchants' Association). For all
tobacco products. Registered January 2i, 1934, by Consolidated
Litho. Corp.. Brooklyn. X. Y. Transferred to Ha'vatampa Cigar
Co., Tampa. I'la.. March 26th. 1934.
SMOKE KING:— 24,185 (Trade-Mark Record). For cigars. Regis-
tered March 13. 1901, by American Label Co., New York, X. Y.
Transferred to .Morris .S. Kayner. Xew York, X. Y., and re-trans-
ferred to Twentieth Century Cigar Corp., .\ew York, N. Y.. April
24. 1934.
SILVER BOW CLUB:— 35,207 (United Registration Bureau). For
cigars. Registered Xovember 27, 1908, bv .Adolph Blank. Butte,
Mont. Transferred to II. Feifer & Co.. Xew York. X. Y., and re-
transferred to M. Rosen, Xew York, N. Y., .^pril 24, 1934.

The Wajifiior biand is for<i:in«:: ahead liere since the
advent of the achlition of several new sizes to tlie line.

Frank Rwick, prosldent of Health Cipfar Co., and
of Simpson, Stndwell & Swiek, stopped off in Philadel-
jjhia, pr(»vious to embarking on an extensive trip
through the West.

John McOnerty, of IJomeo y Julieta, dropped in
on his local distributor (John Wagner & Sons) to re-
port a great improvement in demand for his brand,
and also reported that shipments from Cuba were now
arriving regularly, although not in sufficient quantity
to meet the increasing demand.

"What a

welcome visitor

The Tobacco World

must be to wholesalers and

retailers !

•'If they

are only half as

interested

in reading it as

we ourselves are, we're glad

our ad is

in it regularly" —

says an advertiser.

iiifiiiiiniiinHi

niiiiiiiiitiim

/OLUME 54

JUN 6 - mi

o

n

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la., Pa,
Hanover, Pa.
Cincinnati, Ohio

^ —^ - — w ... mw York, Pa,

AUTOKRAFT BOX CORPORATION Chicago, in.

Lima Ohio Detroit, Mich.

A NalioixWidc Service Wheeling, W. Va.

iiiiinmiiiiifn

PUBLISHED ON THf 1ST AND 15th OF EACh'mONTH AT 236 CHESTNUT ST.. PHILA.. PA

After all
^nothing satisfies li
a good cigar

he

WOODEN BOXES

Are the Only Natural Humidor for Cigars,

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

member fhat Regardlett of Prict

THE BEST CIGARS

ACS PAGUS i;«

WOODEN BOXES

THE TOBACCO WORLD

Vol 54

JUNE 1. 1934

No. 11

JOKE'S where we beat the pessimists to it. The
April withdrawal figures reveal a loss for
snuff of 7 i)er cent, and a loss for manufac-
tured tobacco of 5 1/3 per cent. Those are
llie only figures over which the calamity howlers can
Liloat, so let's escort them into the crying room, hand
llicm their crying towels, and leave them alone to
enjoy their bad health. There can be Init little solace
lor them in these minor losses; certainly the manu-
I'acturers in those two classifications are not worrying
unduly.

But, my frauds, look over the other figures, not
only for the month of April (page 10), but also for
the ten months' withdrawals (page 17). Look over
the cigar figures, each bracket and the total. Look
over the cigarette figures in each division.

£33 Ct3 t33

AZK down these percentage gains for cigars:
dass A, 10.83 per cent.; Class B, 34.17 per
cent.; (lass C, 16.28 per cent.; Class D, 8.90
j>er cent.; Class E, 11.78 per cent. They total
up to 11.62 per cent. (38,813,616 more regular cigars)
tlian were manufactured last year. Not to be out-
done, little cigars made the uni)recedented gain of
r)7.23 per cent., or, in other words, 6,r)22,r)75 cigars.
Cigarettes gained 16.57 per cent.

Cj3 It] Ct)

lEX gaze down the ten-months' table. If you
are not a confirmed grouch, you will be tempted
to throw your hat in the air and exclaim: ''Oh
bov, at last we have turned the corner of the

tobacco road!'*

Just to make yourself feel better still, ponder over
the accumulated record for the first four months of
this year. Cigarettes sh(»w a gain of 6,8.V),12r),2r)7
(that's getting close to seven billion, y'understand),
or 17.45 per cent. Cigars increased to tlie tune of
140,349,523 (140 million plus), or 10.43 per cent.

Things are looking uj) in our business!

Cj3 CS3 CJ3

.VTHEH'S Day will be celebrated <»n Sun-
dav, June 17th. If there is one class of
merchandise ])eculiarly approj)riate as a gift
to dad in celebration of his <lay, it is i)re-
cisely that merchandise which is ofTered for sale
in cigar stores — cigars, cigarettes, smoking tt)bacco,
pipes, lighters, etc. If tliere is not a substantial
volume of sales of these tobacco and allied products

directlv due to the occurrence of Father's Dav, it will
be solely because those engaged in the manufacture,
wholesaling and retailing of tobacco products are not
as good business men as those engaged in the flower
and candy businesses, who make plenty on the cele-
bration of Mother's Day. Are you willing to admit,
Mr. Manufacturer, that the nurservman or the candv-
maker have something on you in business acumen!
Are you willing to admit, Mr. Jobber, that the whole-
salers of flowers and candy are better sales promoters
than you are! Are you willing to admit, Mr. Retailer,
that you should take your hat off to the florist or the
candy store proj)rietor when it comes to taking ad-
vantage of a situation made to order for the benefit
of your business? On the answers to those (juestions
depends the volume of extra business that will result
from the observance of Father's Dav.

Cj3 Cj3 ft]

VER get a swell idea and then discover that
somebody else has identically the same idea
and has put it forth in better style than you
could dream of doing it yourself? That's ex-
actly what has hai)i)ened in connection with what we
fondly imagined were some original thoughts about
suinmei- slumps. Printers' Ink has turned the trick
so well that we have more than the ordinary pleasure
in reproducing its expression of the idea: "We fear
that our warning comes too late; but here it is almost
.lune, and American business is away behind in its
plans for this summer's summer slumping.

"A good slump, a slump of which management
may be proud, a slump that, on a chart, really looks
like something — such a slumj) must be deliberate. A
first-class slump doesn't just happen. It needs to be
roughed out in conference, ])olished in committee,
written into the budget, and then carried out, vigor-
ously, by the general executives, the department heads
aiul all the subordinates. Indeed, to insure perfec-
tion in execution, perhai)s the whole thing ought to
be eml)odied carefully in a summer-slumping manual.

Cj3 CjD Ct3

KRTAIXLY, tradition dictates that, as the first
step toward bringing about a dog-day's drop
in volume, advertisers must curtail their ad-
vertising. A more positive exi)edient — and
one that hasn't been tried thus far, because, seemingly,
no one has thought of it — would l>e to switch the copy
theme to read: ''Customers: Please don't disturb us
during June, July and August. We'll be slumping."

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia. Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year. 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post Office, Philadelphia. Pa., under the Act of March 3, 1879.

:

"Yot wc fear that neither advertising curtail-
ment noi' a (liiect apjx'al lo custoincrs asking them not
to buy, will do any gooil now. l^'or advertising, instead
of running down, has been gathering momentum. Ad-
vertising volume is iuoreasing.

** Possibly business will be able to achieve some-
tliing of a shnnj), anyway. But, from this distance, it
seems destined to be nothing better tiian makeshift.

*'In fact, we shall go further and i)redict tlnit, as
c(un])ared with the slumps of other years, this one will
l)e a flat failure."

Stocks of Leaf Tobacco in U. S.

''BilF' HoIIingsworth Gets Swell Dinner

X TEXDEKING this dinner it is our hope that
you will accei)t tlie same as a slight token of
the loyalty and apj)reciation whieh you have
always inspired in those who have served with
you and know you." That ti'ilmte, ])rinted at the head
of the menu, sounded the keynote of what ])artici])ants
described as the swellest function of its kind thev had
ever attended — the testimonial dinner to William A.
HoIIingsworth, ])resident of the Ketail To))acco Dealers
Association, tendered l)y the retail tobacco trade in
the Hotel Astor, New York C'itv, Saturdav evening,
Mav26th.

^Manufacturers, jobbers, stipplr men, all joined
with the retailers to do honor to "Bill" HoIIingsworth.
By the hundreds they gathered, certainly more than
a thousand in all, some of the i)articipants placing the
number of diners close to the mark of 1500.

A regular guv, a square shooter and a born leader
— in those simple i)h rases may be summarized the
tributes to the guest of honor in the addresses of the
l)rogrammed sj^eakers — Matthew AVoll, I. M. Ornburn,
Arthur S. Meyer. Siegfried Hartman, Samuel S. Perry,
Hon. Samuel Levy, Hon. Royal S. Copeland and Hon.

Kobert F. Wagner. Lou Tjieberman was the official
toastmaster.

On the dais, in addition to those, were: Charlie
Landau, Herman Lesky, Eric Calamia, William Gold-
stein, I. H. Lefkowitz, Max Berliner, Moe Weinstein,
Arthur S. Meyer, Sam Katz and Ed Castro.

All praise is due to the officers and members of
connnittees for the brilliance of the aiTair: Lou Lieber-
nian, chairman; I. H. Lefkowitz, vice-chairnnm; Wil-
liam Goldstein, secretary; Max Berliner, treasurer.

Banquet Committee: Herman Lesky, chairman;
Max Berliner, Edward Castro, Jack Edelstein, Her-
man J. Goldwater, William Goldstein, Sam Katz,
Charlie Landau, Ben L. Laschow^ Lou Liebernum,
Fred Miller, Joe Saremsky, Paul Schleissner, Moe
Weinstein, Morris Weiss, Arthur Wilhelm.

Reception Connnittee: Ben L. Laschow, chairman;
Eric Calamia, Jos. Freeman, Joseph Friedman, Manny
Goldstein, Max Goldstein, Chas. Greene, B. B. Horo-
witz, Michael Kohen, Charles Landau, Phil Lottnuin,
Leo Matusow, Jonas J. OllendortT, Moe Packer, Sam
Singer, Lou Schneider, Morris Weiss.

Guest Connnittee: Sam Wasserman, Carl Avery
Werner, Ralph S. Williams.

Out Today! ''Memoirs of Alex Smart

HOSE who followed the ** Memoirs of Alex
Smart" by- A. Joseph Newman, when they aj)-
peared in serial form, will welcome their col-
lection into a handy little pocket size volume,
which has lately come from the press. The ' ' Memoirs ' '
represent the life and opinions of one Alex Smart, self-
confessed super-salesman. In his opening chapter the
great man strikes the keynote of the theme which runs
throughout his commentaries: **Pm going to take you
behind the scenes and put the spotliglit on the nefari-
ous juactices and stu])end(uis stupidities of sales mana-
gers. The fact that I have been with ])ractically every
cigar manufacturer in the I'nited States for ])eriods
of two weeks to at least two months, amjjly <pialifies
me to pass judgment on what's wrong with them, and
what's right with us salesmen."

With this introduction. Smart proceeds to take the
hide otf "the average employer who foolishly exjX'cts
his employees to work as diligently as he does," and to
tell what's the matter with a cock-eved business world
in which everyone is out of step except Alex.

If you are a salesman, or have ever been in the sell-
ing end, the "Memoirs of Alex Smart" will go straight
to your funny bone. But j)erhaps Mr. Newman has a
more serious purpose than merely to provide a sue-
eession of hearty laughs, interspersed with «puet
chuckles for the reader. In his foreword the authoi-
explains. "Mr. Smart is not a fictitious person. Dur-

ing my thirty years of selling I have heard every om
of Alex's opinions voiced by one or another of my fel-
low^ salesmen. Yes, Alex is real enough — in that he is
a composite of many actual persons.

*'I trust that the Memoirs will be received in the
good-natured spirit in which they are written — and as
a healthful and pleasant antidote to the traces of Alex
Smart ism which are likelv to be found in the best oi

us.

» »

All in all, the ** Memoirs of Alex Smart" is a great
little book. To those who can read between the lines it
provides some solid food for thought, liberally salted
with delighted humor. You shouldn't miss it.

RETAILERS' CONVENTION

Retail Tobacco Dealers of America, Inc., will hold
its annual convention at the Stevens Hotel in Chicago,
111., on June IJUh and 20th. All members of the asso-
<Mation are invited to attend this convention. An inter-
esting program will be arranged for the delegates.

The Convention will open at 10 A. M., Tuesday
morning, June llMh, and will adjourn Wednesday after-
noon, June 20th.

Aside from the general business of the Convention,
a new Board of Directors will be elected. All members
who desire to attend, please connnunicate with Wm. A.
HoIIingsworth, President, Retail Tobacc4> Dealers ol*
America, Inc., 233 Broadway, New York City.

The Tobacco World

ITOCKS of leaf tobacco in the United States
owned by dealers and manufacturers amounted
to 2,441,454,000 pounds on April 1, 1934, com-
pared with 2,277,904,000 pounds on April 1,
1933. This is an increase in the total stocks of 103,-
.')r)0,000 ])ounds over the stocks of a year ago April 1st.
I'rom January 1, 1934, to April 1, 1934, total stocks
increased 2r>9,l 12,000 pounds. The increase during the
.same period of 1933, namely, January 1, 1933, to April
1, 1933, amounted to only 133,171,000 pounds.

Stocks of tlue-cured tobacco on hand A\n-\\ 1, 1934,
were 784,925,000 i)Ounds, compared with 680,280,000
)M»unds on April 1, 1933, an increase of 104,(345,000
pounds over the holdings of a year ago. During the
first quarter of 1934 fiue-cured stocks decreased
7.'5.1 99,000 pounds compared with a decrease of 89,217,-
000 pounds during the first quarter of 1933.. Stocks
(»r Tvpe 11 on April 1, 1934, were reported as 339,028,-
1)00 pounds; Type 12 as 266,234,000 pounds; Type 13
as 128,670,000 pounds, and Type 14 as 50,993,000
])ounds. The detailed report by groups of grades
shows about the same relative proportion of tobacco
in the various groups.

Stocks of fire-cured tobacco were reported as
•225,813,000 pounds on April 1, 1934, compared with
242,389,000 pounds on April 1, 1933. Total fire-cured
stocks were about sixteen and one-half million pounds
lower than they were a year ago April 1st, and about
lifty-four million pounds higher than they were at the
beginning of the previous quarter. This increase dur-
ing the quarter is normal as most of the previous
year's crop is nuirketed during this period. Virginia
lire-cured, Tyi)e 21 stocks reported as 36,884,000
pounds on April 1st, were about one million pounds
higher than a year ago. Type 22, reported as 136,370,-
n()0 pounds on April 1st, showed a decrease of nearly
seven and one-half million pounds under the previous
vear's stocks. Tvpe 23 stocks were reported as
47,748,000 i)ounds and Type 24 as 4,811,000 pounds on
April 1, 1934.

Burley stocks were about eighty-five and one-half
million pounds higher on April 1, 1934, than they were
April 1, 1933, and 244,341,(H)0 jmunds higher than on
the first day of this year. The April 1, 1934, report
shows 829,593,000 pounds on hand which is a record
high for Burley stocks. Maryland tobacco stocks were
about six million pounds lower on Ajjril 1st than on
January 1, 1934, but are still slightly higher than the
juevious year's stocks. The April 1, 1934, report
shows 31,921,000 pounds of Maryland tobacco on hand.
One-sucker stocks on April 1, 1934, amounted to
41,178,000 pounds, or about a quarter of a million
pounds higher than the previous April 1st stocks.
(Jreen River stocks, reported as 37,684,0(K) pounds on
April 1, 1934, were 6,332,000 pounds lower than a year
ago. Virginia sun-cured stocks totaled 4,431,000
pounds on April 1st more than two million pounds
iiigher than at the beginning of this year and nearly
a million pounds higher than the previous April 1st.
Miscellaneous domestic stocks were reported as
2,323,000 pounds antl foreign-grown other than cigar
leaf as 80,477,000 pounds on Ai)ril 1, 1934.

April 1st Cigar Leaf Tobacco Stocks

Stocks of American-grown cigar fdler types
nmounted to 181,637,000 pounds on April 1, 1934, com-

JuHC I, 1934

pared with 178,675,000 pounds on April 1, 1933, an
increase of nearly three million pounds. Type 41,
Pennsylvania seedleaf stocks on April 1, 1934, were
103,405,000 pounds; Type 42, Gebhardt, 21,546,000
pounds; Type 43, Zimnier, 25,564,000 pounds; Type 44,
Dutch, 8,613,000 pounds ; Type 45, Georgia and Florida
sun-grown, 1,347,000 pounds; and Type 46, Porto
Rican, 21,162,000 pounds. The detailed report by
groups of grades shows about 77 per cent, of the total
filler type stocks in the C group and about 18 per cent,
in the X group.

The cigar binder type stocks were only a little
over a million pounds higher on April 1, 1934, than
they were on April 1, 1933. Total binder type stocks
were reported as 196,425,000 pounds on April 1, 1934.
Type 51, Connecticut broadleaf stocks, were 37,829,000
pounds on April 1, 1934; Type 52, Connecticut Havana
seed, 35,688,000 pounds ; Type 53, New York and Penn-
sylvania Havana seed, 3,382,000 pounds; Type 54,
Southern Wisconsin, 72,309,000 pounds; Type 55,
Northern Wisconsin, 47,217,000 pounds. The detailed
report by groups of grades shows that of the total
binder type stocks reported 4,496,000 pounds, or 2^4
per cent., are of wrapper quality; 74,619,000 pounds,
or 38 per cent., are binders ; 10,226,000 pounds, or 5^/4
per cent., are fillers; and 106,523,000 pounds, or 54^A
per cent., are stennning grade or X group tobacco.

Shade-grown wrapper tyi)e stocks were about a
million and a quarter pounds lower on April 1, 1934,
than on April 1, 1933, and about a million pounds low^er
than on January 1, 1934. The April 1, 1934, report
show^s a total of 13,751,000 pounds on hand. Connecticut
Valley Shade, Type 61, stocks were reported as
10,313,000 pounds, and Georgia and Florida Shade as
3,438,000 pounds. Of the total shade tobacco stocks
reported 9,632,000 pounds are rej)orted in the A group
as being of actual wrapper quality.

Foreign-grown cigar leaf tobacco stocks were re-
ported as 11,296,000 pounds on April 1, 1934.

MRS. PAUUNE UNGAR

Following a long illness Mrs. Pauline Ungar,
w^dow of the late Alexander Ungar, and president of
Alexander Ungar, Inc., one of the largest firms in the
country manufacturing cigar containers, passed away
at her home, 2209 Andrews Avenue, New York City,
in the evening of Tuesday, May 22d.

Mrs. Ungar was widely knoum for her welfare
work and for her many charities in New York (*ity.

Services were held on Thursdav, Mav 24th, at 2
P. M., in the West End Chapel at 200 W.* Ninety-first
Street. The seating ca])acity was exhausted and many
stood during the services. The entire front of the
chapel was banked with floral tributes. The casket was
covered with a blanket of roses which had been sent
by the employees of the factory.

Many ])rominent in the cigar and cigar container
industry were in attendance.

Mrs. Ungar is survived by two sons, Harry F., and
Dr. Stanley tlngar, and two sisters, Mrs. Serena Klein
and Miss Margaret Fireman.

In respect to the memory of ^Frs. Ungar tli(^ New
Brunswick factory was closed all day Thursday.

MIA.

PRODUCT— PUBLICITY— PROMOTION

V YOU want to know the reasons for \hv grati-
fying:: sales of IMiillies and other Baynk |)r()(l-
ucts in Xew Jersey, executives of tlie oomi)a]iy
will enumerate for you, with pleasure, the
sniokinu" public's acceptance, plus sincere and elTective
advertising, plus sales ])roinotion elTorts of the distrib-
utors: Jersey City Tobacco Co.; Hayuk's Newark
Branch; A. *D. Hanauer (Trenton); Andrew Jacoby
(Atlantic Citv); F. W. I.avton c^' Son (Pennsgrove) ;
and AVilliani I). Callahan, Atlantic Tobacco Co. (Wild-
wood ) .

A niighty nice job on Phillies is being done by
Joseph Whitehead, S]iringfield, Mass.

The Xew York office of Bayuk Cigars, Inc., is mak-
ing marked ])rogress in the sale of Phillies and other
brands of the com])any under the able management of
Fred H. Brown.

In San Francisco and tributary regions "Bayuk
Phillies are materially increasing in demand through
the energy of Khrman Bros., Horn & Co. and branches,
in conjunction with t*he sales promotion activities of
Bayuk Territorial ^fanager F. Xagel.

E. A, Friedley & Bro., Batavia, X. Y., arc doing a
nice job on Phillies and Havana Kibbon in their terri-
tory.

Students of high schools and colleges, and others
interested in industrial efficiency, continue to take ad-
vantage of th«' educational facilities furnished by a
trip through the Bayuk ])lant. Among rec(Mit visitors
were the members of the Science Class of the ^Vest
Philadelphia High School and a group of junior em-
])loyees of the Bankers Trust Co., of Xew York City.
The nine young men in the latter group are making a
tour of the country, visiting industrial establishments.
The visit to the Bayuk plant was their (mly stop in
Philadelphia.

A recent prruninent visitor was Jose])h Kolodny,
secretary of the X^'ational Association of Tobacco Dis-
tributors.

Beniamin Lumlev retuiiied last week from a trip
through northern Xew York State in the interest ot hi^i
Garcia y Vega brand, and reports a very successful
trip. Business was very much im|n-ove<l in every ])oint
visited l>y Mr. Lumh'v, and an excellent summer season
is confidently antici])ated.

Trade Notes

Kid Xicbols, of Belinda fame, was in to\^Ti last
weolc and rei»orts business increasing on his brand.

On and after June 4th, the Philadelphia T'^'ntt of
the Autokraft Box Corporation will be located at lUll
Diamond Street.

John Wagner, of John Wagner & Sons, local dis-
tributors, sjieiit last week among the trout streams of
Pennsvlvania and returned after a most enjovable trip
and a good catch of fish.

Jack ^ferriam, of M. Bustillo & Mcrriam, was in
town last week highly i»leased with the improvement in
business on his l)rand and most optimistic over future
prospects.

I. B. AVhite, manager of the cigar department of
John Wagner and Sons, reports excellent demand on
Komeo y Julieta cigars with some si/.es constantly
oversold, in si)ite of the fact that shipments are now
coming through from Cuba regularly.

Antonio y Cleopatra cigars are continuing to in-
crease in favor in this territory and this increase is
attributed verv largelv to the introduction of the new
Princess size, which has a punctured head and allow>
the cigar to be smoked without the usual biting or cut-
ting olT of the head before lighting.

Herman Abrams, formerly representing the .Mazer
Cressman Cigar Comi)any in this territory, is now fac-
tory representative for ¥1. A. Kline and Co., and i^
promoting distribution and sale of the .Medalist brand.
S'ahn & .McDonnell, local distributors, report a sphn
did increase in distribution and sab' on this brand
since the recent a<lvent of two new sizes, which have
proved popular with discriminating smokeis here.

Th4 Tobacco World

Musings of a Cigar Store Indian

By Chief "Young-Man-Smoke-Cigars"

IXTRACTS from "The Passing of the Wooden
Indian," by John L. Morrison, in the Septem-
ber, 1928, issue of Scribner's Magazine, which
have aroused much interest because of their
liistorical associations, are completed in the following
[.nragraphs: '* Wooden Indians were almost invariably
. arved out of clear pine and usually from one stick.
Sometimes extra blocks were glued on, and a Fritz
I)ecker Indian, owned by (Miarles Seiders, Philadel-
]»hia, is made entirely of small blocks.

CJ3 Cj3 CT3

UK SCCLPTOHS originated designs or copied
book illustrations or prints. I have never seen
dujilicates, and only one pair api)roaching close
resemblance ; thev are seven hundred miles
apart. I have found no duplicates even among metal
Indians. The carvers must have exercised much orig-
inality, or there were so few makers that their work
was scattered. It was customary for the sculptor to
paint his creation, but repainting, of course, was be-
neath him. It seems almost incredible now that there
were itinerant painters making a business of reapply-
ing war paint.

Cj3 CS3 Cj3

HH DESIGNS fell into four groups: (1) chiefs;
(2) s(piaws or Pocahontases; i'A) blackamoors
or Pomi)eys; (4) "white men." The fourth
class included Sir Walter Haleighs, Uncle
Sams, Lord Dundrearys, Forty-niners, policemen.
Punches, Highlanders, and scores of others, including
cigarette-smoking girls! In the early seventies Cham-
pagne Charleys were i)opular, tall figures with a Scotch
l»hysiognomy ; the name came from a ])opular song of
that day: ^'Champagne Charley is my name," etc.

•

Ct3 Ct3 Ct3

HFSF INDIANS brought various i)rices.
Snudl Indians sold in New York for $20 to $30.
It was a low, full-sized brave that did not fetch
$2.') or more. Canal Street, New York, was a
mart for bargains in Indians, and the i)revailing ])rice
$25, but most of these were trade-ins and used chiefs,
reconditioned and rei)ainted. Proportionately, the
trade-in feature in the wooden-Indian industry
was as active as in motor cars today — in fact,
Leopold Schwager accepted so many trade-ins
\w finallv found himself, similar to the used car dealer,
with a iion-unloadable stock when the demand^faded
awav. Deinnth Indians sold for from $50 to $75 and
^HK). Edward Hen had them slightly cheaper and his
Moek was larger. In Haltimore good figures were sold
at $75. Pompeys brmight $25 to $2(M). Detroit Indians
M>ld for the biggest prices; Melcher's Indians brought
him from $150 up— in one instance $700.

J I lie /, 1934

DEALER on Flushing Avenue, near Graham
Avenue, Brooklyn, specialized in little Indians,
about thirty inches high, for window use.
Fifty years ago, Morris Hirsh's cigar store,
65 Fulton Street, Brooklyn, was fronted by the ligure
of a white man, cigar in mouth, with hands })ressed at
sides of his head, porous plaster on back. Piominently
displayed was the legend: "Oh, how hard this cigar
draws!" People came from all over the United States,
even from California, to see it and laugh. People went
far for their amusement in those pre-comic-strip days.
Not so far away from Hirsh's and in the same street,
near Clark, Tobacconist Haslani displayed in his w-in-
dow an Indian made entirely of cigars rolled expressly
for this purpose, some of them large and some as small
as one and one-half inches long. It took Haslam months
to make it and the populace years to talk about it. A
dealer on Myrtle Avenue, between Pearl and Jay
Streets, Brooklyn, displayed a coil of tobacco above
his door after the early European method.

Cj3 Ctj Ct)

TALIANS in New York made small-size win-
dow Indians of plaster and peddled them.
These were about two feet high, as a rule, and
no large plaster Indian is reported.
The metal Indian competed successfully with the
wooden from about Civil War time. They were attrac-
tive in design, not easily kidnapped l)y l>oys or by men
possessed with a low form of humor and ex])ressing
themselves in their own way, but cost more and were
virtually non-repairable. Though called "iron" this
metal was usually cast zinc. A good metal Indian, with
a genuine custom body, cost from $125 to $200 and
even $300.

Ct3 Ct] CX3

SEMINOLE chief, standing at Samuel Wil-
lard's, on F Street, was so lifelike that he
frightened women and children in Washing-
ton, D. C., forty years ago, whereupon the
])olice made Willard saw off the barrel of the chief V
musket. Present ])oli(*e regulations have relegated
him to I). Ochsmairs back room, gun or no gun.

Ct3 [J3 Ct]

RONZE was used in making at least one cigar
store Indian. It stood at Alles & Fisher's,
Boston, fr(mi 1874 to 1918, when the building
was demolished and the figure taken down. It
is the most pretentious of show-figure Indians, but
neither the present Alles & Fisher firm nor the Amer-
ican Tobacco Company, in whose general oflices the
statue now stands, kn(>ws the name of the man who
designed or cast this gem, which Henry Wadswoith
Longfellow often stopped to admire.

X Erio, Pa., wood carver has made the only
colli rihiitiou to c'l;u,ar store sculpture in threo
decades. I'll not sav wooden Indian; it's a
Malay demon. One novel, one i)lay, one song
are the ins})irational achievement of the ci*»:ar-store
Indian in literature, the drama and nnisic, and iie re-
centlv Hashed in and out of a slapstick movie.

C?: Cj3 CJ3

UK ci^ar-store Indian has ])layed his part and
vanished, lie will not i)r()ha))ly ever he with
us again in his full size and connnandin<»- pres-
ence on our sidewalks, l)ut some of these days
we may have an era of trade symhols, or <>uild em-
hlems, and the small-size window Indian may return.

CtJ Ct3 Ct3

()()K Lo, in wood, metal, or whatnot, has been
literally and lii»uratively a fii»:ure in the life of
the world for at least three hundred years.
He miiiht well lament with that .ii:reat chief of
the school reader: 'Who is there to s])eak for Lou:anf
No one.' Possibly it is that haunting lament, linuer-
ing from school days, that has compelled this word
in behalf of the wooden Indian— meagre and fragmen-
tary result of considerable research and outlay for
urass-root facts about the origin, rise, and fall of the
cigar-store brave."

PROPOSED TAX RATES

HE 4(1 i>er cent, horizontal reduction in the In-
ternal Kevenue Tax Rates on all tobacco ])rod-
ucts, including cigars, recently recommended
l)v the Vinson Subconnnittee, was api)roved
bv the House Wavs and Means Conunittee at a meet-
ing held on May 24. The Hill (H. K. 9441) thus ap-
l)roved by the Ways and Means Connnittee and rec-
ommended for passage was introduced by Congress-
man Vinson (chairman of the sul)committee) and ])ro-
vides for the new tax rates shown in the table below:

Proposed

To J Hates

'- A7) per M.

Presetit
Tar Pates

.$ .7.') i)er

M,

i i

( i

i (

1.20

:UM)

S.KI

l.so
4.:;2

.1(»H '*

4 t

i i

4 t

4 {

t(

4 4
4 4
4 4

« 4

lb.

Little cigars

* Cigars :

Class A 2.00

Class H 3.00

Class C .J.OO

Class I) 10..')0

dass E 13.50

( 'igarettes o.tM)

•'Large cigarettes .... 7.20

Mfd. tobacc(» ^' snutT. . . .18 " lb.

*The i)resent classification of cigars would re-
main unchanged.

**Exce]»t that if more than 0% inches in length
they shall be taxable at tlie ordinary cigarette tax rate,
counting each 2% inch (or fraction thereof) of the
length of <'ach as one cigarette.

It is to be noted that the new tax rates provided
for in this bill "shall apjily only with respect to arti-
cles sold or removed for consumption or sale after SO
(Jatfs after the date (tf the enaetnirvt of this Act/'

The Connnit tee's r<'i)ort will probably be sub-
mitted to the House for action thereon earlv this week.

FINAL CONTRACT DATE SET

UK final date for acceptance of tobacco acre
age adjustment contracts for filler and binder
ty])es of cigar-leaf tobacco grown in the Wis-
consin-Minnesota, Ohio- Indiana, Pennsyl-
vania-New York, and New England areas, has been
set at June 15, it was announced today by the tobacco
section of the Agricultural Adjustment Administra-
tion.

Producers who oi)erated under cigar-leaf con-
tracts in these producing districts last year also have
until June 15 to execute riders which carry the oi)tions
contained in the 1934 contract, giving ])roducers the
choice of reducing acreage by either 33 1/3 per cent.,
50 per cent., or 100 per cent., of their base acreage.

Officials also announced that ])roducers have until
June 15 to select or change a selection already made
in the o})tion as to the projwrtion of base acreage to
be retired from production under the contract.

Some cigar manufacturers have indicated that in
their judgment ])roducers in jmsition to grow tobacco
of the most desirable (pialities for cigar ])urposes will
find it to their advantage to acce])t the o])tions pro-
viding for the smaller reduction rather than the op-
tions providing for the larger reductions.

Bayuk Cigars, Inc., of Philadel])hia, and the Gen-
eral Cigar Com])any of New Yoik, have advised the
tobacco section that their stocks of domestic filler to-
baccos are not excessive, and that very little tobacco
suited to their recpiirements is available for purchase.
Under the conditions, these firms believe, a crop some-
what larger than that now indicated, if of good qual-
ity, would bring ])roducers higher prices than have
prevailed in recent years.

Officials of the tobacco section pointed out that
although total stocks of cigar types are still large,
it may be that stocks of some giades have been re-
duced until they are not excessive. However, it is sug-
gested that each grower consider carefully the demand
for the quality of tobacco which he produces in order
to obtain the greatest possible advantage from the
flexible j)rovisions of the 1{>34 adjustment contract.

Because of the changes that may be made in the
contracts between now and June 15, tabulations of
the contracts which are now in county and State offices
will not be made until after the close of the sign-ui)
l>eriod.

SALESBSEN ORGANIZE IN D. C.

Headed by (J rand President Abe Brown, the execu-
tive committee of the National Board of Tobacco Sales-
men's Association will organize a Washington, I). (^.
Tobacco Salesmen's Association, Saturday, June 2, at
3 \\ M. Organization will be hehl at the Hotel llamil
ton. Fourteenth and K Streets Northwest.

Post])onenient from May 2()th was necessary owing
to the N. B. T. S. A. members wanting to attend the
testimonial dinner to William A. Hollingswortli, presi
dent of the Retail Tobacco Dealers of America, Inc.

Resolutions passed by the National Board urge all
numufacturers, distributors, jobbers and salesmen to
go after Father 'h Day business. The occasion lends
ftself admirably to the promotion of tobacco sales be
it cigars, cigarettes or smoking tobacco. The industry
is urged to feature Father's Day in advertising, win-
dow poster.s and store counter disjilays.

Tht Tobacco World

. . . It's irritating
and it means...
jangled nerves!

Yes, it's irritating to listen to that
constant, tuneless humming — and
more than that, the humming is a sign
of jangled nerves.

If you notice any of those tell-
tale nervous habits in yourself — if
you whistle through your teeth —
juggle your keys — drum on the table
— then it's time to start taking care
of yourself.

Get enough sleep >- fresh air —
recreation — and watch your smok-
ing . . . Remember, you can smoke
as many Camels as you want Their
costlier tobaccos never jangle your
nerves.

HAVE FUN!

«S^^/or FREE Game Book

New — illustrated book of 20 ways to
test nerves. Fascinat-
ing! Amazing! "Show
up" your friends. See
if you have healthy
nerves. Send fronts
from 2 packages of
Camels with order-
blank below. . . Free
book is sent postpaid.

CUP AND MAIL TODAY!

R. J. Reynolds Tobacco Company
Dept. 112-C, Winston-Salem. If. C.

I encloee fronts from 2 packs of Camela.
Send me book of nerve tesU postpaid.

Name.

(PRIHT NAME)

Strt€t.

City StaU

Offer .xplrea D*c«mb«r 31, 1934

I

COSTLIER TOBACCOS

Camels are made trom finer, MORE EXPENSIVE
TOBACCOS than any other popular brand of cigarettes!

SMOKE AS MANY AS YOU WANT...
THEY NEVER GET ON YOUR NERVES I

June I, igs4

J'
m

I

U. S. Cigars Up Nearly 24 Millions in April

HE followiiiu' eomparativo data of tax-paid
products, indicated by the monthly sales of
stamps, are issued by the Bureau. (Figures
for A])ril, IJKU, are subject to revision until

published in the annual report):

— Avril —

Prftffuffs
Cii'ars (large) :

Class A No.

Class B No.

dass C No.

Class D No.

Class E No.

-L oiai

nf.'M

2{K],m)0,515
;i:?2t),497

44,(;7i),7:^o

3,121,()50
278,339

277,187,420

2,477,513

38,425,990

2,866,535

249,115

345,0t;6,731 321,206,573

(l-ars (small) No. 17,629,400 10,896,826

Ciiiarettes (large) ...No. 11,817,000 196,811

Cii-arettes (small) .. No. 9,293,630,590 7,973,021,190

SnutT, mfd Lbs. 3,1{)8,039 3,440,392

Tobacco, mfd Lbs. 24,062,007 25,407,025

Tax-paid ])roducts from Puerto Rico (not included
in above statement) were as follows:

— April —

/'

Cigars (large) :

Class A No.

Class B No.

Class C No.

Total

19:i4

193S

6,206,400

208,5(K)

28,750

4,082,650

164,7(K)

17,000

6,443,(>50

4,264,350

290,0(K)
100,000
400,000

50(),0(K)
20,(K)0
65,000

Cigars (small) No.

Cigarettes (large) ...No.
Cigarettes (small) ..No.

Tax-i)aid i)roducts from the Fhilijijiines (not in-
cluded in above statement) were as follows:

— April —

Proflucts

VJ3i

1933

Cigars (large) :

Class A

. .No.

21,208,510

8,442,275

Class H

. . No.

1(5,843

4,970

Class C

..No.

9,476

13,476

Class J)

. . No.

150

2CK)

dass E

. . No.

120

• • •

Total

21,235,1)99

8,460,921

. . No.

Cigarettes (large) ,

l,fKM)

Cigarettes (small) .

. . No.

344.100

83,(H)0

Tobacco, mfd

. .Lbs.

5

14

STATEMENT OF COLLECTIONS FOR APRIL

Sources of Revenue 1934

Cigars . .' $ 913,396.20

Cigarettes 27,968,190.33

SinitT 575,647.10

Tol)acco, cliwg., smkg.. . 4,331,337.09
Cigarette papers and

tubes 76,113.07

Miscellaneous, relating to

tobacco — 8,319.45

1933

'^ 812,923.16

23,921,084.01

619,270.59

4,574,056.32

65,111.68

241.00

April Cigar Withdrawals 1920 to 1932 Inclusive

April, 1920
1921
1922
1 {)23
1924
1925
1926

. 663,577,579
.548,103,503
.501,393,544

%Q'7 'I'n ^l'^'>

.501,422,160
.493,775,432
.509,132,588

April, 1927 .

1928 .

1929 .

1930 .

1931 .

1932 .

. 475,970,589
.459,021,565
.550,912,261
. 469.968,598
.459,981,900
.349,953,161

Processing Tax Returns

Detail of collections from ])rocessing and related
taxes proclaimed l)y the Secretary of Agriculture and
under authority of the Agricultural Adjustment Act
(Public— No. 10— 73d Congress), approved Mav 12,
1!)33.

Total from Juh/
Moi/fh of 1933 (Fiscal
Commi)fHttf April 1931 year 1931)

T()l)acco, tax efTective Oc-
tober 1, 1933):

Processing tax J|^2,l 38,1 10.36 jf^l 1,850,487.57

Import c o m i)ensating

taxes 21,037.52

Floor tax, other than

retail dealers 3,323.21

Floor !ax, retail deal-
ers 1,722.06

131,564.24

1,804,785.89

241,637.61

Total, tobacco ....$2,164,193.15 $14,028,475.31

GEORGE AND GRACIE AT THE FAIR

George Burns and Oracie Allen made a special trip
to Chicago to take part in a broadcast at the openiim
of the White Owl exhibit in the WorkPs Fair, Mav 26th.
The program was on the WABC-(\)lumbia network
from 6:15 to 6:30 P. M., KDST, and the musical por-
tion, supplied by Guy Lombardo and his Koyal Cana-
dians, originated in Pittsburgh, where the band was
filling a vaudeville engagement.

The opening ceremonies were lirief, but i?npressive.
Gracie dropi)ed a bale of tobacco on (Jeorge's foot,
(ieorge shouted, *'Ouch!'\ which was tbe cue for the
engineer to turn on the controls for the broadcast. This
is the second season George and (Jracie have opened
the White Owl exhibit.

m

POSTERS AND FATHER'S DAY BUTTONS

Abe Brown, manager of the Newark Brancb ot
Bayuk Cigars, Inc., has announced the release of a
state-wide outdoor biin)oard campaiLni featuring
Bayuk 's Phillies on twenty-four sheet posters, lie
adds tbat Phillies are on display and sale wherever
cigars are sold, be it road stands, department stores,
clubs, hotels or cigar stores.

The sales force in co-operation is putting up win-
dow posters, screen door signs and outdoor all-weather
plaeard.s.

The salesmen are giving to those retailers that will
make the effort a large red coat-lapel button liearing
the inscription, ''How About (^igars for Father's
Day.'' In keeping with Bayuk's desire to promote the
sale of cigars in general there is no Bayuk advertising
on the button.

Tk€ Tobacco World

it's toasted"

LUCKIES ARE ALL-WAYS KIND TO YOUR THROAT

On^ the Center Leaves^tAcse are the Mildest Leaves f^^h^ Ttuy ^miiti P^tti^

^"•"■^ Oi^f^«.IW<TW»iiiiiilni't%*««*»

:zL

June J, 1934

tt

ti

News From Congress

-. 'AND

Federal
Departments

rPKOVAL of i)roposals for a 40 per cent, re-
(liK'tioii in tol)acco taxes, sou»i:ht by the niaiiii-
faetiiiers of lO-eeiit ciufarettes during- consid-
eration of the new I'evenue hill, was voted by
the House Ways and Means (V^niniittee May 24th. A
result of the cut, if ajiproved by (\)nnress, would be a
reduction in the retail ]>rices of cigarettes, jmssibly
with the now lo-cent brands coming down to 10 cents
and the 10-cent types being sold at two i)ackages for 15
cents.

Adoption of the proposal would mean a reduction
in tobacco tax collections of $75,000,000 a year to begin
with, although ])roi)onents of the move claim that in-
creased consumi)tion would take up much of this
amounf.

The legislation has the backing of the tobacco
growers, who see in increased consumption a ])ossible
scra]>])ing of the entire tobacco acreage reduction pro-
gram and the raising of tobacco prices up to ])arity.

The committee's favorable report was made in the
face of the President's refusal to connnit himself on
the question, although it had been indicated in White
House circles that both he and the Secretary of the
Treasury felt it would result ill a considerable loss of
revenue.

Although the ipies^tion of a cut in the tobacco taxes
was broached while the VXU revenue bill was under con-
sideration, neither the House nor Senate took any
action on the matter. Following the reporting of the
bill, tlie House Ways and Means Committee turned the
(juestion over to a subconnnittee for consideration, and
that group some weeks ago made a report favoring tax
reduction.

Announcing the decision of the full connnittee,
Reiiresentative Robert L. Doughton (Dem.) of North
Carolina, chairman, declared that *Mlie subconnnittee
heard representatives of all major cigarette-i)roducing
corporations promise that if the tax reduction is en-
acted the entire benefit will accrue to tlie consumer,
with no additional profit to the producer.

"AVe believe that these firms realize the serious-
ness of the situation and will carry out their promises
in order to benefit tobacco growers."

The action of the connnittee, while advancing the
tax-reduction program, does not necessarilv imnlv that

anything will come of the movement tin

s session,

Kf-

forts are being made to adjourn Congress by .June 9th,
and the matter must yet be passed ui)on by the House
and then l)y the Senate, so that if any d(»termined oppo-
sition was expressed in the lattor body it might result in
delaying the measure until too late for action.

Proponents of the bill, however, express confidence
that little objection will ])e raised in either House or
Senate and are confident that it can be passed.

0

From our jVashinotow Bureau 62ZAl6ei Bwlowg

PPOIXTMEXT of Professor Claudius T. Mur-
chison of the Cniversity of North Carolina as
director of the Bureau of Foreign and Domes-
tic (V)mmerce of the l)ei)artment of Connnerce
was announced May L>4th l)y President Roosevelt.
Murchison was named in place of Professor Willard L.
Thorp of Amherst College, Mass., whose nominati(m
with withdrawn recently when Senate leaders advised
the J*resident he could not be confirmed.

While Thorp was ostensibly rejected on the ground
that he had once been registered as a Republican and
had had but little business experience, the major basis
of the opposition was a fight of political factions in the
department of many months' standing.

Cj3 Ct] Cj3

XACTMENT l)efore the end of the session of
legislation providing for the establishment of
''free ])orts" has been made jiossible l)y the
action of the House Rules Connnittee in expe-
diting consideration of the l)ill sjionsored by Repre-
sentative Celler of New York.^ Similar legislidion has
already l^een passed by the Seiiate.

The bill establishes free port areas where im])orted
goods can come in for rehandling and re-export without
])ayment of duty or storage in bonded warehouses. In
these ports also domestic an<l foreign materials and
products could be combined into connnodities for ex-
jMirt. Briefly, every sort of operation necessary to the
l)roduction from foreign niaterials of merchandise for
the foreign track', excej»t actual manufacturing, could
be carried on in the free zones.

Cj3 Ct] Cj3

THOROrOH investigation by the Senate
Finance Committee of the possibilities of im-
posing a Federal sales tax on all products
except foodstuffs is proposed in a resolution
introduced in the Senate last month by Seiuitor Bar-
bour (»f New Jersey. In introducing his measure, the
Senator indicated his intention of pressing for a gen-
eral sales tax, part of the ?<'eeii)ts from whieh would
be turned over t(» States which do not alrea<ly imjtose
such taxes themselves.

The invest igatir)n pioposcd f<jr the Finance (Nun-
mittee would cover the methods to be used in collecting
the tax, the method of ascertaining the sales prices of
articles subject to the levy, the definition of foodstuffs
to be exempted, and the portion of the revemies to be
alloc4ited to the States.

TA# Tobacco WorU

Cig*""

s are

^^,pIea.nraD.e
,od eoonotuical

/OLUME

BAYUK BULLETIN

wt DO OUR nun

JUNE 1, 1934

NUMBER 9

pHULOF AX FRONT door locked? try

iT!he lietailer^s Friend)

SAYS

"Do retailers really
appreciate the service
as rendered to them by
a jobber and what
would they do were it
not for this jobbing
service?" asks O. C. L.
Not a ba'l question to ponder over.

"When a manufacturer's salesman
I accompanies a jobber's salesman to
assist in promoting the sale of a prod-
uct who should have the lead in the
I sales talk to the prospective customer?

Durinjr every single minute of last
year (Sundays and holidays included)
a certain jobber sold 120 cigars of a
certain brand— zowie, 120 cigars every
minute . . . 7200 cigars every smgle
hour throughout every day of the
year! If the cigars sold were made
into one gigantic cigar it would
measure .)555 miles long! Figured by
the minutes that it takes an average
man to smoke a single standard-sized
cigar, how long would it take a man
to smoke this cigar?

THE SERVICE ENTRANCE

ThaCs What Salesman Florsheimer Did

D. 0. C. sends this in: "Talking
about calls as made by cigar and
tobacco jobbers' salesmen, my wife
told me that her milk-man told her
that he served 345 customers each day
-do you believe it?" Gad, if that
milk-man does serve 345 customers
every day, when did he find the time
to tell your wife? At that, it IS a
few more customers than we cigar
salesmen contact each day, isn't it?

As a salesman, are you a SAPO-
DILLA? No, it doesn't mean what we
might think and besides a Salesman
could not be a Sapodilla if he wanted
to. . . . BUT don't be a QUIUNUNC
Boyoboy, it's bad to be a QUIDNUNC!

It was the swankiest of swank
hotels that Joseph Florsheimer,
Philadelphia cigar salesman,
picked as a good outlet for his
brand.

Now it happened that Joe's
brand retailed for five cents and
the boss of the cigar stand
couldn't see his high hat trade
smoking five cent cigars.

"But," protested Joe, "this is
a good cigar. It's smoked by
men who can afford to pay any
price. I'll bet a lot of your own
customers smoke it. Let me put
a box in the case and prove it."
"Nothing doing," replied the
man behind the Italian marble
cigar counter. "My customers
just barely condescend to speak
to a ten-cent straight."

Well that looked like that. But
it wasn't. Finding the front door
banged in his face, Joe tried out
the service entrance. He started
a little quiet sampling campaign
right there in the hotel. Not
among the guests, oh dear no.
But the doorman got a few
cigars, compliments of Joe Flor-
sheimer. So did some of the
elevator boys, the head waiter,
one of the assistant managers.

Before many days the hotel
cigar stand had sufficient calls
from members of the staff to
justify the cautious purchase of

a box of fifty. And the box of
fifty hadn't been in the case very
long until it was showing signs
of complete exhaustion. Joe had
been right. The guests of this
very high hat hostelry did know
his brand and Uke it. That in-
itial box of fifty has blossomed
into a frequently repeated 250
order.

There's a double-barrel moral
to this story. No. 1 — A good
cigar knows no class distinc-
tions. It can make its way into
any society provided it's given
the right sort of start. No. 2 —
To a good salesman, a prospect's
"No" is no more final than a
woman's.

^TOMORROW'S SUNDAY"
BOOSTS SATURDAY SALES

What is Saturday to you, Mr. Re-
tailer? Merely the day before your
day of rest — or a good opportunity
to pound out some nice extra sales
volume on your cash register?

News-sleuth G. F. Branzell reports
a neat little stunt used in a Wash-
ington, D. C, smoke shop to boost
week-end sales.

When a customer enters the store
on a Saturday and asks for his pet
cigar, the clerk places the box on the
case and at the same time produces
a five-pack with the remark: "Tomor-
row's Sunday."

That fact is usually no news to the
customer, but it does conjure up in
his mind the terrors of a cigarless
Sunday — and the result is some
mighty satisfactory five-pack sales.

$5.00 REWARD

There are millions of smokers
who have never learned that a
cigar is the meet pleasurable form
in which to enjoy tobacco. How
would you go about converting
some of these men to cigars?

There are millions of men who
enjoy a cigar once in a while,
who ought to be regular smokers.
What can be done about them?

Let's have your idea for boost-
ing cigars. Send it to Phulofax,
care Bayuk Cigars, Inc., 9th
Street and Columbia Avenue,
Philadelphia, Pa. Five dollars will
be paid for every idea published.

Be you a jobber, retailer or sales-
man, lots of learning obtainable from
magazines, trade papers, etc . . . and
at little cost, too.

Are y«u a button-wearing C. B. A.
member or a cigar-consumer getting
C. B. A. member? U02B both!

"Arc there two kinds of cigars—-
those that sell and those that don't ?
asks F. O. B.— P. M. P. doesn't agree
-he says — "Yes, there are two kinds
of cigars— those that are licensed to
sell and those that a SALESMAN
can make sell bigger."
— 0 —

This retailer had a store close to a
large railroad.station ... he checked
your grip gratis but when it was
called for, invariably a pleasing sale
of cigaiij was made.

c^^>^

D.B.L

•'*«*»tai*.,/ ^$h B4Yim. aCARS, INC., PhUa,
^oipttkt-.Makmn of J^mm ei§an timem 1897

C B A

(Cigar Boosters Association)
is working for you. Are
you working for it? Join
up now and do your share.

HERE'S HEADWORK

Fred J. Hillman, who covers a New
York State territory for a well known
brand of cigars, works a very clever
"point-of-sales" advertising scheme.

"A great many dealers out my way
have newspaper stands outside their
stores," writes Mr. Hillman. "In my
car I always carry some empty cigar
boxes (my own brand, of course).
Whenever I come to one of these news
stands I leave one of the boxes for
customers to drop their pennies in.

"I've never had a kick from a dealer
— and next to a good poster in the
window, I don't know any better way
of reminding the passer-by that he
can get my cigars inside."

IS THE ^^SOTH" MARKED
ON YOUR CALENDAR?

Memorial Day ushers in another
season of "hay making" days for the
progressive cigar dealer. Close on its
heels follow Father's Day and the
Fourth of July, with Labor Day
faintly discernible on the horizon.

Now's the time to hie yourself
around to the nearest Legion Post
to borrow a supply of tin hats and
other war-time trophies for tiniely
window and store decorations. And
this evening would be an excellent
time to sit down with yourself and
think up a few snappy display cards,
suggesting a box of cigars for the
Memorial Day outing.

And while you are thinking, think
of all the week-end auto trips your
customers are going to take this sum-
mer—and how you can go about sug-
gesting that they take along a good
supply of cigars.

WHAT THE CIGAR BUSINESS NEEDS-Lots of C, B. A. Members
With Good, Hard-working Consciences.

BATUK BRANDS BUILD BUSINESS

Bayuk Philadelphia Perfect©

■^ (BAYUK "prflLLIES")

Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

.

Report on the Kerr Bill

HE HILL for the eoiiliol of tobacco pmdnetion,
geiK'ially known as the Ken- Bill, has been re-
introduceil in a revised form (IL R. !)(jiH)) and
reported ont for i)assat;e by the House Agri-
cultuial Comniittee. A siniilai- bill has also been inlio-
duced in the Senate by the Chairman of the Agricul-
tural Conmiittee as Senate Hill Xo. IkuO.

To quote fi'om the House Connnit tee's rej)ort :

"This Bill has for its jiurpose the protection of the
bona tide tobacco growers who have entered into a con-
tract with the Agricultural J)ei»artment to reduce their
acreage and poundage allotment of tol)acco to be grown
by them for the crop year of l!i:U. . . . These contract
growers who have enthusiastically entered into this
program with the Agricultural Hepartment are de-
manding that they be protected from all non-contiact
groweis who declined to reduce their acreage or pound-
age aikl who can by their unwillingness to coopi'rate
with their fellow fainiers and the Agricultural Depart-
ment wreck the program and defeat the purposes of the
law. . . .

*' . . . Therefore, this 15111 proposes to i)ut a sales
tax of from 2.3 i)er cent, to 33 1,.') per cent, on all to-
bacco juoduced by contracting i)arties in excess of that
allotted to them by the Agricultural l)ei)artnient and
on all tobacco produced and otfered for sale by those
who did not enter into contract to reduce iheir
crop. . . .

** . . .In brief, the levy seeks to prevent the man
on the outside from unduly profit ing by his neighbor's
reduction and by his neighbor's sincere endeavor to
enter into a cooperative agreement by which fair prices
will l>e obtainecl. . . "

»>

TAXES

Again qiiofin*? from the Honso roTnmit tee's report,
tlie measure provides tor:

'' . . . a sales tax on all types of tobacco which
come under the operation of this act, nf not /^.v.s- than 26
l)rr rrut. or wore than :j'i 1 .7 pt-r cent, nf the pi he for
whicli ,^ai(l tobacco is nftld, which was grown and
marketed l>y non-contracting tobacco growers who do
not participate in the adjustment program of the Agri-
cultural Administration. This tax applies to all to-
bacco harvested in the crop ipar of 1934-35 except
Maryland tobacm, Virffinia snn cured tobacco, and
ayar-leaf tobat < n, and tobacco yr<iun bij (frowcrs nJio
produce less than 2,000 pounds of tolnno, a crop
year. ..."

It is tr) be noted that no tax is imposed under this
bdl "u])on tobacco harvested prioi- to the crop vear
l!)34-iy35."

Under the general scheme of this measure, the tax
is levied on all tobacco sold, excejiting the types ex-
empted. But farmers cooperating in the Voluntary
Tobacco l*ioduction Progiam would receive non-trans-
ferable tax payment warrants (without })aying there-
f<»r) for the jioundage allotted them. These warrants
wouhl in turn be accejjted in payment of the tax. Xon-
coojM'rators having no warrants, or farmers selling
more than their allotted share (for the excess of which
they would have no wariants) would, of course, have
to pay the tax in cash.

14

The bill requires all persons having information
in respect to tobacco produced or sold to disclose said
information to the Comnussioner of Internal Revenue.

REGARDING LATER CROPS

It is to be noted that the bill detinitely imposes
the tax on the 11)34-11)3.') crop. As regards later crops,
the measure contains the following provision:

"... Thereafter whenever the Secretary of Agri-
cultuie determines that the persons who own, rent,
share crop, or control two-thirds of the land custo-
marily engaged in the production of any particular
type of tobacco favor the levy of the tax thereon and
that the imposition of the tax thereon is necessary for
the orderly marketing of such tobacco in interstate
and foreign commerce and to effectuate the declared
policy of this Act, he shall proclaim such determination
at least sixty days prior to the next succeeding crop
year, and the tax shall thereafter apply to tobacco of
such type harvested during the crop year next follow-
ing the date of such proclamation,"

CIGAR TOBACCO

Here again we quote from the report of the House
Committee, to wit:

"Section 15 provides that the Secretary of Agri-
culture may establish quotas for the importation of any
ciyar-lcaf types of tobacco into continental United
States whicli may come in competition with such type
^/ tobacco to which the tax herein provided is applica
ble. These quotas to be allotted to the imi)orters of
such tobacco by the Secretary of Agriculture — he hav-
ing due regard for the resi)ective amounts of tobacco
inq)orted within the crop years 1932-33 and 11)33-34 by
said importers.

''Section 16 authorizes the Secretary of Agricul-
ture tn fix an import-tax rate on cigar-leaf tttbacco
which exceeds the quota allotted to importers. This is
<lone to further jirotect the American growers of cigar-
leaf tobacco and nuike it inqmssible for foreign iin
porters to take advantage of domestic reduction of
this type of tobacco."

Attention is also directed to tlie following pro-
vision contained in Section 16 of the bill:

'* . . .As used in this and the preceding section
'cigar-leaf types of tobacco' shall include cigars, which
for the purposes of the (juotas, allotments, and import
tax ]>rovided foi- by said sections shall be translated
into terms of raw cigar-leaf tobacco of the respective
types frcmi which such cigars are produced, ])ursuant
to conversion factors established and proclaimed by the
Secretary of Agriculture."

Section 3 (c) of the bill reads:

**The provisions of this Act shall be applicable to
the I'nited States and its possessions, except the
Philippin(» Islands, the Virgin Islands, American
Samoa, the Canal Zone, and the island of (luam."

The main office, showroom and ston* of T. Miller
and Son, importers and distributors of cigars and to
l>acco products, is now located in the (Jreeley Arcad«'
Building, 128 W. Thirty-first Street, running through
to 127 W. Thirtieth Street. Tlie store operates on a
''cash-and-carry" basis.

News from Congress

(Continued from page 12)

ACKETEERING" in equity receiverships
and bankruptcy proceedings has cost the
country $4,0()0,00( ),()()() during the last five
years, according to a report just prei)ared by
ji House judiciary subcommittee embodying the results
r)i" investigations into the situation in C'hicago, on the
1 ;sis of which general legislative clumges in bank-
1 i])tcy huvs were reconnnended.

Going into detail regarding the conditions dis-
posed by its study, the subcommittee reported that
"the outstanding fact wiiich in our opinion justifies the
-,>verest criticism of the courts in the northern district
r Illinois is the apparent utter disregard by judges of
llie rights of property of creditors in the matters of the
allowance fees to attorneys and receivers and the vari-
ous items of expense."

The House group was one of several which during
I he ])ast year have studied the bankru])tcy situation.
l!s finding that ai)proximately $8( )(),()()( ),()()( ) a year has
been lost to creditors during the past five years is
borne out bv other studies Avhich have been nuide, but
it is exi)lai"ned that the loss during the depression
period has been considerably in excess of nornud be-
cause of the unprecedented conditions which have pre-
\ailed.

e

HEARING ON FLUE-CURED TAX

PTBLK' hearing was concluded on ^lay 24,
at which evidence in support of a reduction
in the rate of the i)rocessing tax on tiue-cured
tobacco used in the manufacture of ]))ug chew-
ing tobacco and twist, was introduced. The hearing
was hehl in the Internal Kevenue Building. Five wit-
nesses, H. B. Taylor, of the Taylor Brothers Tobacco
(N)mi)anv, E. J.*I)avis, tobacco warehouseman, J. V.
Trotnanl, of Winston-Salem, N. (\, and J. E. Howard,
of the Sparrow-CJravelv Tobacco (^ompany, Martins-
burg, West Virginia, and J. B. O'Brien, of the Ryan-
Ihunpton Tobacco Gompany, Louisville, gave testi-
mony in support of the proposed change in the tax rate.
'Evidence was presented to the effect that plug
.hewing tobacco and twist, nu\de from flue-cured to-
bacco, were of such low value as com])ared with the
quant'itv of tobacco used in their manufacture that
the present tax is curtailing the use of flue-cured to-
bacco in these products, and is acting to cause an
accumulation of surplus stocks.

Hepresentatives of the ])rocessors asked that the
lax reduction be made retroactive to October 1, 1}>33,
and that the i)rocessing tax on all types of tobacco
usimI in the numufacture of plug and twist be levied
at the same rate. The rate requested was l'_.cents
per pound. There were no witnesses in oppositum to
the reduction in the tax rate.

('

Th€ Tobacco World

The New Prince Ihnnlet cigar, product of Bayuk
rigars, Inc., ami retailing at ten cents and up, has
received splendid co-operation from retaders m tins
<ity and is well disi)layed in all the prominent cigar
^loVes The splendid volume of sales obtained is an
.xcelient barometer recording the trend ot business
< (editions.

June t. 1934

Ki

ILLIAN RUSSELL

2

for

5c

CIGARS

CIGAR

P. LORILLARD GO'S

Quality

2 ^^'^ 5^

Cigars

Meeting the public's demand
for quality cigars
moderately priced

NEW

CURRENCY

CIGARS

2

for

5c

Our Other Popular 2 for 5f Cigars
JAMES G. BLAINE • • POSTMASTER
LA FRAOSA • SARONA • WAR EAGLE

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION <^*fjSfjj"%s5
OF UNITED STATES ^^^J^^

JESSE A. BLOCH. Wheeling. VV. Va. vv'Pr^^lK

jrULS LICHTENSTTEIN. New York, N. Y ^.^ • vY'^p^^^'f.t^*

WILLIAM BEST. New York. N. Y. ...^... Chairman Executive Comm.ttee

MAJ. GEORGE VV. HILL. New York. N.Y V « rr"£^^

(iEORGE H. HUMMELL. New York, N. Y V ce-PresS

H. H. SHELTON. WashinRton D C V cc-Pres deSt

WILLIAM T. REED. Richmond Va Vice-President

HARVEY L. HIRST. Philadelphia, Pa TJclsurSr

cillRfE^'s dShkTnd. N;w'^Yo;k;N: -^^^

^ Headquarters. 541 Madison Ave., New York City

RETAIL TOBACCO DEALERS OF AMERICA, INC.

JAMES C. THOMPSON. Chicago. Ill Ireasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City Fi;st' Vice-pJesidenl

?!'VKiL^E!N'i^rwk'^v:::;:::::::::::::::::::::-^

Ekl'lAMUEtk^Ner YoJIc' CUy" Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave. Newark. N. J 'First' Vice-Plresidenl

''H}^^'^J'i^n^l''T;.nZ N J- • ;;:::::..:::.::::.secind vldpresident

IRVEN M. MOSS. Trenton. N. J Secretary

A. STERNBERG. Newark. N. J "^

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

* ^.„^^».Tc President

ITmuFl MAGID?^^! N.MeVvine S;.VPhi.ade,pW^ Secretary

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS. INC.

„ „ , . .,, President

P ASRURY DAVIS, Baltimore, Md ;;•• I" "iVv Secretary

jVeMI K0i!oDNY. 200 p/th Ave., New York. N. Y. ■■•;-;--;;;;:;;;|^^^^^^^
GEO. B. SCRAMBLING, Cleveland. Ohio

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

{JSSiAn'h^FE." :3bl 'Fox ihiUding.- Phiiad^^^^^

t5

p

John Wagner & Sons are meeting- with unusual
success in promoting a new size of Medal of Honor
cigars, retailing at lifteen cents, and under the front
mark of '*fancv tales."

II. H. Kynott, advertising counsel for, among
others, the G. II. P. Cigar Co., has been re-elected presi-
dent of the Poor Richard Club. He is the first presi-
dent to be elected for three successive terms, since the
early days of the club.

George Stociving, of Araiigo y Arango, was a visi-
tor in towTi last week, and reports business on his Don
Sebastian brand showing a fine increase over the same
period last year. Improvement in business conditions
is particularly notic<^able in the Class C and D mei*-
chandise. Mr. Stocking was enroute to factory head-
quarters.

SPREADERS OF OPTIMISM

LATED over the continued comeback of ciffar
smoking, as reflected in the figures released
for A]nil, Frank P. Will, executive vice-presi-
dent of G. H. P. Cigar Co., and Dave A. Jenks,
assistant sales manager, returned from tlieir recent
optimism-spreading tour, full of confidence that their
faith in the future of the business will be justified in
a maimer to silence the cynics. Accompanied by
H. H. Kvnett, advertising counsel for the comj)any,
they addressed the Buffalo and Rochester sales forces
of Kearney-Lehmann Co. on the 18th, and on the follow-
ing day the sales organization of the X. Rice Cigar Co.
in the William Penn Hotel, Pittsburgh.

Present and future promotion plans for El Pro-
ducto and La Azora w^ere discussed in detail. G. H. P.
has formulated a proirram to take the fullest advantage
of the smoking public's return to the cigar as a favorite
form of relaxation.

E. J. Myers and IMoe Gordon report that condi-
tions look favorable for a nmch better season at iVtlan-
tic City, and they are well pleased with the prospects
there for El Producto and La Azora.

The company has recently been in receipt of let-
ters from distributors all over the country who are
l»hinning to attend the Distributors' Convention in
AVasliington on June 9th, and to stop off for a visit
to the G. II. P. plant in Philadelphia.

tt

LITTLE AMERICA" WANTS LUCKIES

|HERE is a serious shortage of cigarettes in
"Little America." The Byrd Expedition in
the Antarctic is out of smokes and a loud
clamor has gone up. David N. Paul, of Cluir-
leroi, and his brother received a IT. S. Anny radiogram
from the ''Bear of Oakland," flagship of* the expedi-
tion, wliich told the story in cryptic flashes.

Their brother, B. W. Paul, assistant chief engineer
aboard the "Bear," has wirelessed for 3()0() cigarettes
])v mail.

The radiogram was received by way of Wellington,

Xew Zealand, Buenos Aires and New York City!

"Please send me 3000 Lucky Strike cigarettes by mail.

Will pay you on mv return home. There is a short ai^e

here. LoveB. W. Paul."

David and Lester Paul, both of whom are on IT. S.
Tnsj)ection Service boats, bade goodbye to their brothei-
last winter when he shipped with $20 worth of cigar-
ettes and intended to buy more from the ship's store.
Later he wired that nmny of the cigarettes had been
damaged and that the shortage w^ould occur.

David Paul lives in Fifth Street, Charleroi, and is
stationed on the "Tecumseh." Lester is stationed on a
boat of the Jones & Laughlin line and lives on Neville
Island, Pittsburgh.— ^f?/^ Wiper, in Charleroi (Pa.)
Mail, May 1, 1934.

w

NO STATEMENT ON TAX CUT

Acting Secretary R. G. Tugwell today made tl
following statement: "No statement of the attitude of
the Department of Agriculture on the proposed hori-
zontal tax reduction on tobacco products has been
made. We are giving the matter further studv."

It is not too late to make plans to cash in on
Father's Day in a big way.

You sell what every Dad likes. Don't keep that
fact a secret.

Sunday, June 1 7 th, is the date.

/©

Th* Tobacco World

NBC

RED NETWORK

9:30-10 P. M., E. D. T.

New York WEAF

Hanford WTIC

Providence WJAR

Uorcester WTAG

Poriland WCSH

Philadelphia . . WFI-WLIT

Schenectady WGY

Buffalo WBEN

Pittsburgh WCAE

•i30-9 P.M., E.S.T.

Baltimore WFBR

Washington WRC

Cleveland WTAM

Detroit WWJ

Cincinnati WSAI

•t30-9 P.M., CD. T.

Chicaso WMAQ

7i30-t P. M., C. S. T.

St. Louis KSD

De» Moines . . WOC-WHO

Omaha WOW

Kansas City WDAF

U. S. Cigars Up Nearly 222 Millions in 10 Months

TEN MONTHS WITHDRAWALS FOR CONSUMP-

('iu;ars:
(Jlass A-

U. S.
P. R.
P. I.

TION

Ut 10 Mas.
Fiseal Ir. 1934

:], 148,200,000 +

49,()7(),28() +

201,1)27,890 -f

— Decrease
-\- Increase
Quant it If

30:1145,015

1,345,060

60,923,130

Total 3,339,858,170 + 371,414,405

Class B—

\J m k3» ••••••

P I

Total ..

29,666,185

2,365,100

187,334

— 3,383,127

-f 1,698,()50

— 342,082

32,218,619 -

2,027,159

( lass C—
LI. f*^. • .
P. R. .
P. I. .

476,538,118
824,180
220,018

— 71,949,010

— 99,900
-I- 394

Total

477,582,316 — 72,048,516

(lass D—

U. S. .
P. R. .
P. I. .

• • • •

• • • • •

30,292,337 —

1,000
2,2(K)

+

Total ..

3(;,295,537 —

Class K-

u. s.

p. R.
P. I.

• • ■ • *

4,401,849
2,970

Total

4,404,825 —

5,318,9(K)
500
124

5,319,270

668,128

23,847

691,975

r«»tal All Classes:
P T

3,695,158,489 +

52,860,560 -f-

202,340,418 +

221,820,450

2,943,310

60,557,719

Grand Total . . 3,950,359,407 + 291,327,479

Little Cigaib :

u . o

P. R

P I

Total

188,495,987
2,020,000

191,115,987 —

984,053
1,484,000

499,947

Ci«carettes :

U. S 93,331,955,912 + 9,220,329,366

P. R 3,949,800 -f 1,545,460

P. 1 1,520,850 -h 143,240

Total 93,337,426,562 + 9,222,018,066

La rice Cigarettes:

U, S.

P R

P I

Total

SiiiilT (lbs.):

All r. s

Tu))a('co (iiifd. lbs.)

P I

84,060,700 +

855,000 -h

6,400 —

81 ,637,105

445,000

5,591

84,922,100 + 82,076,514

31,582,256 +

254,849,883 -f
81 —

Total 254,849,964 +

2,665,087

4,539,011
131

4,538,880

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name.

Street No.

P. O

JState

June 1. 1034

n

JUNE 15, 1934

LIBRARY

Esnblished 1886

"BEST OF THE BEST"

^^^^^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Ktp Wtst. Florida

OUE HIOH-OKADE NON-EVAPOBATINO

CIGAR FLAVORS

Make tobacco meUow and smooth in character
and Impart a most palatable flavor

FUYORS FOR SMOKING tnd CHEWING TOBACCO

Write for List of Flavors for Special Brands
AHTUN. AIOMATIZEI. EOX PLAVOIS. PASTE SWEETENEKS

FRIES & BRO., 92 Reade Street. New York

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•/"IXSWlXf/'lVf/Jlv^

Classified Column

The rate foi this colanin is tfiree cents (3c.) • word, with
a minimum charge of seventy-five cents (75c.) psjsbls
strictly in advance.

l^nr^^1^;rsan^v>^?s^1ryivlr^^/yflrAi^r,r/yrt^/i^^1^y^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan, 5915 Webster Street, Philadelphia. Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World,"

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fls. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, JtV^YoS'cm

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

Registration,

Search,

Transfer,

Duplicate Certificate,

(see Note A),
(see Note B),

$5.00
1.00
2.00
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.

NEW REGISTRATIONS

GERHART'S AFFIDAVIT CIGAR:— 46,327. For cigars. March
.^1, 1934. i:. S. (ierhart. Allcntown. I'a.

TRU-HAVANA:— 46,327. For cigars. M. Block, Rrooklvn. .\. V
May 4, 1934. (By consent of Consolidated Litho. Corp., Brook-
lyn, N. Y.)

1 BAGGER: — 46,332. For all tobacco products. Harvev's Syra-
cuse, X. v., May 15. 1934. ^ » .> ■*

2 BAGGER: — 46,333. hor all tobacco products. Harvev's. .Syra-
cuse, N. V., May 15, 1934.

TRANSFERRED REGISTRATIONS

PARK AVENUE:— 44,025 (Tobacco Merchants' .\ssi.ciati«.n). l-or
cigars, cigarettes and tobacco. Registered bv 1). Fmil Klein Co.
Inc.. New York. N. Y., Xc.veniber 11, 1924.' Transferred t(. Xati
Nov Interstate Co.. New York, X. Y.. and re-transferred bv Inter-
state Co.. Chicago. III., successors to the Van Xov Interstate Co.
to D. Eniil Klein Co., Inc., New York, N. Y., May 3, 1934.

PARTELLO: — 18,889 (Tobacco World). For cigars, cigarettes,
cheroots and stogies. Registered bv Superia Cigar Mfg. Co., De-
troit. Mich.. October 28, 1909. Transferred by San relino Cigar
Mfg. Co.. Detroit, Mich., successors to the original registrant, to
the American Bo.x Supply Co., Detroit. Mich.

LIFE'S HANDICAP:— 19,126 (Trade-Mark Record). For cigars.
Registered May 5. 1898. by L. Lew & Son. Xew York, X. Y.
Transferred by Schlegel Litho. Corp.. Xew York, X. Y., who had
acquired all brands of the original registrant, to American Bo.x
Supply Co., Detroit. Mich.. May 10. 1934.

DON EQUESTRO:— 21,888 (Trade-Mark Record). l-or cigars.
Registered December 8. 1899, by Henry Drucker, Xew York. X. Y.
Through mesne transfers ac<juired by .American Box Suppiv Co.,
Detroit. Mich., and re-transferred to KIsie Bennett, Detroit. Mich.,
May 9, 1934.

FERDINAND MAGELLAN:— 133,255 (Patent Office). Fi>r cigars.
Registered July 20. 1920, by The Harkert Cigar Co.. Daveni»ort.
Iowa. Through mesne tran>fers ac(iuired by Henry W. Pcabody
v\ t San Francisco, Cal.. and re-transferred to 11. .M. (Jreen &
Si 'II. .San Francisco, Cal.. .\pril 24. 1934.

MYLDA: — 46,178 (Tobacco .Merchants' .Association). 1 ..r all to-
bacco products. Registered lebruary 23, 1933, by James C. Trezc-
vant, Tampa. Fla. Transferred to Havatampa Cigar Co.. Tampa,
Fla.. May 7, 1934.

NEW DAY: — 44,537 (Tobacco .\lercliant>* .Association). For all to-
bacco products. Rcgisurcd March 25, 192'', by Chas \'. I'uscli
Sons. Marysville. Kan. rransferre<l to J. J. McCaulev & .Son,
rhrichsville. Ohii.. May 14, PM4.

VETZEL: — 46,302 (Tobacco Merchants' .Xs^ticiation). I- or cigar.-',
cigarettes and tobacco. Registered March 8. 1934. by R. P. X'etzcl.
Melbourne, Fla. Transferred to .Melbounu' ( iwar I artery, Mel-
bourne, 1-la.. not Inc. (a partnership bttwcen R. P. \ ctzel and C.
F. Daniels). .May 1. 1934.

THREE BAGGER:— 5,761 ( Tobacct* Leaf). F'or cigars. Regis-
tered May 22, 1891, by Lindsey X. Oliver, Boston. Mass. Trans-
ferred to H. H. Finley. Syracuse. X. Y.. and re-transftrred to Har-
vey's, Syracuse. X. Y., May 22. 1934.

PANIC: — 9,152 ( I'obacco Leaf). I-'or cigars, cheroots, smoking an<l
chewing tobacco. Registered Xovember 1, 1894, by Ruhe Bros.
Co., .Allentown. Pa. Transferred to Geo, W. Zimmerman, Allen-
town. Pa., .\pril 22, 1918,

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

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WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

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WHEN BUYING CIGARS

Remember that Regardless of Price

THE BEST CIGARS

ARE rAGKCD l>

WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

JUNE 15. 1934

No. 12

HE current Camel cii»arette advertising cam-
paign is more than ordinarily interesting be-
cause it is getting down into the reasons why
a smoker smokes. ''From a famous research
laboratory in New York," the text reads, "comes a
basic discovery that throws new light on our past
knowledge about cigarettes. It embodies an 'energiz-
ing effect' ... a harmless restoration of the flow of
natural body energy ... a delightful relief from
fatigue and irritability." Each release is accompanied
by a graphic chart picturinu' the variation of human
ciiergy during the day. ''Who hasn't felt 'dog-tired'
after work . . . with a long evening ahead . . .
and dinner time still an hour away! That's just one
(»f the nuiny, many tunes during the day when you will
want to ligiit up a Camel." Elsewhere, the copy treats
of the "energizing effect, " the "lift which is a re-
lease of your own natural energy . . . your latent
energy made easily and harmlessly available. So
when you're feeling run-down, tired, 'all in,' smoke a
Camel and see what ha[)pens. That tired feeling slips
away. Camels have helped your own body to help
itself and bring you back in 'pep' and energy."

Cj3 Ct} CT3

HE New York research laboratory quoted in
the Camel cam])aign is not the only recent
authority for the belief that there is more to
cigarette smoking than a taste which provides
<'phemeral ])leasure. Witness the findings of Profs.
Howard W. Haggard and Leon A. Greenberg, of the
LalKjratory of Applied Physiology, Y^ale University,
whose paper, "The Effects of Cigarette Smoking
Cpon the Blood Sugar," was reprinted in the March
1st issue of The Tobacco World. These investigators
learned that cigarette smoking temporarily relieves a
condition of hunger. Witness also the despatch from
tlie eighty-fifth annual meeting of the American Med-
ical Association regarding the cooling of the skin re-
sulting from the smoking of one cigarette. The sig-
nificance of some of the findings of the scientists may
not be clear to the lay mind, but this professional in-
terest must have the ultimate effect of stilling forever
the fear of harmfulness attending the .sensible smok-
ing of cigarettes. It marks the beginning of the end
of what may be termed the negative note in cigarette
advertising.* It has seemed to us that too much cigar-
ette advertising has been of a negative character. The
inference drawn from much of this advertising was
that the cigarette, generally speaking, was not a good
ihing for a person to indulge in, because of its harmful
elTects, but that the particular cigarette being adver-
tised did not suffer from that general curse. There
has been too little, if any, of the positive injunction
<»r suggestion to smoke a cigarette because "it is good
for what ails you." And it must be just that.

OW else account for the volume of cigarette
smoking in tiiis country! Those of us in the

industry know that 111 billion cigarettes were

smoked in tlie United States during 1933. But
that does not by any means represent the total.
Nobody knows how many "roll your own" cigarettes
were consumed. It has been estimated, however, that
fifty-five billion of them were rolled. Be extra con-
servative, if you will, and cut the figure in half. You
still have more than twenty-seven billion cigarettes
rolled by smokers last year. Add the conservative
"roll your own" figure to that of the machine-made
brands. The sum is 139 billion, 352 million cigarettes.
Do you realize what that means!

Cj3 CJ3 Cp

T MEANS eleven billion, 612 million cigarettes
were smoked in one month, or more than were
smoked during the entire year 1912, only
twenty-one years earlier. It means nearly 382
million cigarettes smoked everv dav. It means that
during the year 1933, every minute of the sixteen
waking hours of every day, nearly 400,000 people
lighted cigarettes!

Cj3 Cj3 Cj3

OW the 1933 consumption of cigarettes in toto
represented a substantial increase over 1932,
which showed an advance over 1931, which, in
turn, recorded a gain over 1930, and so on.
That constant increase in consumption during the
period of the depression was true of nothing else.
People not only did not stop buying cigarettes as they
stopped buying everything else, but, on the contrary,
they bought more of them than ever. When they
could no longer pay fifteen cents a pack, or a quarter
for two i)acks. they bought cheaper cigarettes at ten
cents a pack. And when even the dimes became scarce,
they started to "roll their own." The point is that
tlu'ij kept OH siHoJcing. W^HYf

Ct3 CX3 CX3

HE present Camel series gives one answer to
this question. It is not too much to expect
that this is only the beginning of a general
educational canq)aign on the part of cigarette
nuinufacturers, pointing out the "why" of the public's
recourse to the cigarette as a necessity on an almost
equal footing with food. Such a general campaign
wuU not only change the mental attitude of those who
still suffer from the nicotine bugbear and are thus
still firmly opposed to tobacco in any form, but it will
also reassure the great army of smokers who have a
lingering fear that their indulgence is not a good thing
for them, but continue to smoke in spite of that fear.

Xk-rnBArro world festablUhed 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
C.r.lln Ha„k^ntSe«eta^ Office 2^^^^^^ Street. Philadelphia, Pa. Issued bn the 1st and 15th of each month. Subscriptions, avail-

^^l.'^\o^o^\n%"g^^^^^^ a year. 20 ce'nts a copy; foreign, $3.50 a year. Entered as second-class mad matter.

December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 187V.

Distributors Hear Their Code Is Signed

Davis, Kolodny and Scrambling Re-elected at Convention

«-— -ITII forty-oiio States r('])r(»soiit('(l ])y (U'loi»atos
^\^ ill inTsoii and six States ro))rost'iit('(l by i)rox-
it's, thus loaviiiu' only one State inirepi-esentod,
the see«)nil aiimial convent ion of the National
Association of Tobacco Distiihntors came to an official
end with the election of officers, in the MavHower Hotel.
Washiniiton, on Sundav niuht, June lOth. Xearlv 400
nieniiH'is were present at tlie convention's delibera-
tions. The two-day convention was chaiacterized by
the delegates, who rt»i»resented the cream of tol)acco
wholesalers throuiihout the country, as the best-
conducted, most efticient, and the most ])nsinesslike
liatherinii- of its kind they had ever attended.

H. Asbury Davis, of Baltimore, was re-elected
president ; Joseph K(dodny, of Jersey City, was re-
elected secretary: and (Jeorii*' B. Sci*amblin,i»', of (Cleve-
land, was re-elected treasui'ei'. Amonn the vice-])resi-
dents named: K. i\ Dearstyne, All)any: J. P. Man-
ninii. Boston: Alex Schwartz. Cincinnati: Jonathan
Vipond, Scranton: and Louis Khrlich, Kansas City, the
elections s])ell a second term lor Mebbi'ts. JDearstyne,
Schwai'tz, and Vi])ond.

The conventioneers were welcomed by John
Louiihran, Washiugtou jobber, who then turned the

ii'avel over to Piesident Davis. After openinic remarks
by Mr. Davis and supi)lementary lemarks by First
Vice-President Dearstyne, Secretary Kolodny read his
annual report. Committees on Kesolutions* Nomina-
tions and By-Laws wei'e then api)ointed.

An address by Hon. Clyde Kelly, Conoressnian
froin Pennsylvania, and father of the bill i)rovidini»- for
maintenance of resale })rices, marked the ojK'nin*;' of the
Saturday afternoon session. The report of the treas-
urer was then read by Mr. Scramblin**-, and the report
of the Code Committee by Mr. Kolodny, followed bv
open discussion of the code i)rovisions. The event of
the evenin<»- was the bancpiet in the main ballroom, ren-
dered more enjoyable by *»()od news re<»ardin.i»- Coch*
a]>i)roval received late in the afternoon.

Evidence of the earnestness of the distributors was
had in the attendance at the Sunday morninu: session,
when were heard the reports from the Conmiittee on
Kesolutions, the Committee on Nominations, and the
Committee on By-Laws, previous to a .ucneral discus-
sion of measures for the upliflin.ir of the industry, and
for the elimination of abuses and harmful ])ractices.
Holdiui;- a ))rominent place in these discussions was a
plea for a nation-wide publicity campaign.

Bills Affecting Tobacco Industry

PRESIDENT SIGNS TARIFF BILL

Both houses havin.ir j)assed the administration
measure (H. K. SdST) amending; the existin«»: taritT act
so as to i»:ive the Presulent authority to nejrotiate recip-
rocal tariil* treaties and to make modilications of exist-
ing' duties, imjMjrt restrictions, etc., with the limitation
that "No proclamation shall be made increasinjz: or de-
creasinu* by more than 50 i»er cent, any existing:: rate of
dutv or transtVninn anv article between the dutiable
and free lists," the measure was si«ined by the Presi-
dent on June PJth.

i

TOBACCO CONTROL BILL APPROVED

The Seiuite Airriculture Committee on .June 12tli
apj)ioved without chanire the House bill to control to-
bacco production throuirh taxation. The bill is alon^
the lines of the Bankhead compulsory cotton-control
measure passed earlier in the session.

The bill would authorize the Secretary of Agricul-
ture to impose a tax of .'}3'.$ per cent, of the selling? jjrice
on growers who refused to abi<le by <piotas assigned by
the Farm Administration. He would have the discre-
tion, however, to make this oidy 2.') jier cent.

Tax exemption warrants would l)e issued to <i:row-
ers to enter into the A. A. A. au:reements, and in certain
counties where the ])roduction aureements did not pro-
vide an ecjuitable distiibution the Secretary could in-
crease the (plot as l)y .') |)er cent. The tax would be
ap|»licable to all tobacco luirvested in the crop year
19.'j4-1935 except Maryland tobacco, Vir«cinia sun-cured
and ciirar-leaf tobacco.

HARRISON BILL "DEFERRED"

Aecordinj^ to all indications, the so-called Harrison
Bill (S. 281)7) which would jiermit States havinji: sales
taxes in force to levy such taxes upon j^oods brou«i:ht
into their States in interstate connnerce and which was
passed in the Senate, will probably remain utipassf/l in
the House.

It will be recalled that consideiable opposition has
<levelo])ed ai^ainst this measure and that very impres-
sive hearings were held before the House Connnittee at
which this bill was most forcefully and vigorously op-
p<»sed.

It is now reported that the House Connnittee has
announced that consideration of this measure has been
"deferred" by the committee, which is interjireted to
mean that the bill will remain in the committee unre-
l)orted.

2 YEARS' LIMIT ON KERR BILL

The Kerr Tobacco Control Bill (H. R. 9(m)) has
been passed in the House with an amendment limitinj^
its duration to two years. It is to be noted that ci^rar
leaf tobacco, Maryland tobacco, and Vir«i:inia sun-cured
tobacco, harvested in the crop year l!).*U-l!).'^r), are ex-
empted from the tax; and further, that the Secretary
of Agriculture may, under certain circumstances, estab-
lish (piotas for importation of cipar tnhactft, trhich iif-
chtfh's also tn(inufa<tnr('fl ciffars, and impose an imi)ort
tax upon the excess of such quotas allotted to importers.

The measure is now awaiting action by the Senate.
In this connection, it is to be noted that a similar bill —
S. 3630 — has been pending for some time in the Senate
Agricultural Committee without any action thereon.

Tki Tobacco fVorU

Justice Calls for Tax Cut

Farmer, Manufacturer, Merchandiser and Consumer Would Benefit

By COL. DESHA BRECKINRIDGE

HIO TAX on cijj^arettes and other tobacco prod-
ucts had its jijenesis lar<»:ely in the thou<;ht that
not only was tobacco a luxury, but injurious.
I do not attemj)t to ^ive the full record of the
imi)osition of the taxes, but at the be<i:innin«^ of 1917 the
tax on cijjjarettes was $1.25 a thousand; as a war meas-
ure on October 4, 1917, it was increased to $1.65, or
.d)out 3Vl» cents on a pack of twenty. On November 2,
1917, it was increased to $2.05 a thousand, a little more
than 4 cents a pack. That was the maxinuun during
the war. To make up for the revenue lost because of
the cominj:: of ])rohibition, on February 25, 1919, the
tax was raised to $3 a thousand, where it has remained
since. The ])re-war tax on chewinj? and smokin^j: to-
bacco was 8 cents a jwund. It was increased to lOMi
cents a pound in October, 1917, and in November, 1917,
it was increased to 13 cents a i)ound. On February 25,
1919, it was increased to 18 cents a pound.

In the five years since 1929, when grim privation
has marched through the tobacco ])atch, when the wolf
of want has howled at the very door of tobacco growers,
tlie Government has collected over $2,()0(),()0(),()00 from
the tax on tobacco ])roducts; the annual revenue taken
l»v the Government through the tax on tobacco has aver-
aged over $4tK),(K)0,0(K) a year.

The Government has pro])erly and of necessity ap-
propriated hundreds of millions of dollars of money-
raised through taxation for the benefit of the growers
of wheat and of cotton and of corn and for the pro-
ducers of hogs and cattle and for the relief of the unem-
ploved in city and in country. Yet during those years
it has imposed on one and only one agricultural i)roduct
of which I know or have been able to learn on which the
tax imposed to raise revenue for the war has not V)een
reduced, but increased. It is the only ])roduct on which
the tax imi)osed because of the coming of prohibition
and the decrease in the revenue from the tax on s])irit-
nous and vinous beverages has not been reduced.

JUSTICE CALLS FOR CUT

Unorganized, inarticulate until they found a voice
through Fred Vinson, the tobacco farmers have con-
tinued to have the product of their sweat and toil and
sacrifice taxed far !)eyond any other j)roduct grown or
manufactured in Anierica. Fvery numdate of wise
cconomv, everv dictate of justice demands that there
shall be a reduction in this tax and, furtiier, that all
who are interested in the ])roduction of tobacco shall
unite in making that demand effective.

Due to the efforts of Representative Vinson, the
Ways and Means Connnittee, of which he is a member,
ajipointed a sub-committee to investigate and ascer-
tain the facts and report to the full connnittee. That
lonnnittee held hearings in Washington in March and
April at which there appeared representatives ot
manufacturiMs. I have here the report of those hear-
ings. They are interesting, astounding, tragic.

To smnmarize briefly, yet with practical accuracy,
as stated bv James ('. Stone, who aiifieared before the
connnittee,' a man who in 1933 had thirty acres of

June IS. 1934

land in tobacco that i)roduced one thousand pounds to
the acre received for that tobacco approximately
$35{)(), of which the landowner received half and the
men and women and children who cultivated and
wormed and cut and stripped that tobacco half — less
than $1800 each. On that tobacco the government im-
posed and collected taxes of api)roximately $30,000.

Is there any justification for the imposition of
such taxes! Is there any palliation for governmental
officials, whether they be representatives in Congress
or officials of the Department of Agriculture, who fail
to exert to the limit their influence to have this in-
tolerable burden of indefensible taxation reduced?

The sub-connnittee, of which Mr. Vinson was
chairman, made a rejjort to the full committee that is
a condensed yet grai)hic recital of the facts, with the
reconnnendation that the taxes on all tobacco products
be reduced 40 per cent. The Ways and Means Com-
mittee, by a vote of seventeen to two, reported a bill
providing for such a reduction. ]\Ir. Doughton, chair-
man of tlie Wavs and Means Committee, has submitted
a rei>ort favoring the passage of that bill.

HEARD NONE IN PROTEST

We heard scores testify at the hearings in AVash-
ington. AVe have talked with many more. We have
heard no human being, either directly or indirectly,
attempt to justify the present tax. There are some
who have said that the Go\ernment could not stand
the loss of revenue that would come through the re-
duction of the tax. There are others who favor what
they call a graduated tax, instead of the horizontal
reduction.

The (piestion of the loss of revenue that the Gov-
ernment will suffer is analyzed conclusively in the
rejiort by the Vinson committee. As based on the fig-
ures of 1933, when the aggregate tax on tobacco prod-
ucts was ap])roximately $400,000,000, the possible loss
to the Government through a 40 per cent, reduction
would be $160,000,000. The increase in the use of
cigarettes in the first two months of this year indicates
that there will be an increase of at least 15 per cent,
in the consumption of cigarettes this year. In Jan-
uary and February of this year, the last two months
for which I have the figures, the revenue from tobacco
taxes increased by $12,000,001), which would indicate
an increase of $72,000,000 in the tax on cigarettes alone
in 1934 over 1933, which would make the tax paid on
tobacco products $472,000,000.

This natural increase would, in large measure,
make up for the 40 ])er cent, reduction. In 1929 there
were ai)proximately eight billion cigarette i)apers used
in roll-vour-own cigarettes, upon which taxes were
paid. In 1933 taxes were paid on 48 billion cigarette
papers — six times as many })a])ers sold for roU-your-
own cigaiettes in '33 as in '2!). It takes two jmunds
of tobacco on which the (Jovernment at i)resent col-
lects eighteen cents to make 1000 roll-yonr-own cigar-
ettes. It takes three ])ounds of tobacco on which the
Government collects a dollar a ])0und, and under the

reduction would collect sixty cents a pound to make
1000 manufactured cigarettes.

WOULD LOWER PRICES

With the reduction of 40 per cent, the price of
the cigarettes known as standard hrands would be re-
duced so that they would be retailed at ten cents a
package, enabling the juirchaser to buy three packs
for thirty cents, for which he now purchases two. It
would ena])le tlie manufacturers of ten-cent cigarettes
to retail their cigarettes with larger profit at two pack-
ages for fifteen cents.

Can any one doubt that with the reduction of 33 1-3
per cent, in the price of standard brands and 25 per
cent, in the price of the ten-cent cigarettes that there
would be an enormous increase in the use of manu-
factured cigarettes: that millions of those who since
1929 have made the sale of cigarette papers jump from
eight billion to forty-eight billion would return to the
use of manufactured cigarettes?

What would be the increase in the consumption of
cigarettes none may tell with absolute accuracy. The
estimates vary from 20 to 7.') per cent. James C. Stone,
whose judgment by reason of his ability and experi-
ence is entitled to respect, stated on the stand that
in his opinion a decrease of 50 ])er cent, in the tax
would in time increase the consumption over 50 per
cent.

The authorized sjmkesman for the Big Four com-
panies stated before the committee that if the 40 per
cent, reduction in taxes were made the companies
would sell their cigarettes at a price so that they could
be retailed at ten cents.

The difference between the amount paid by con-
sumers under the present tax and the amount that
would be paid by them under the reduction, only on
the consumption of last year, amounts to $136,000,000,
which would be left in the i)ockets of the consumer to
spend for other products.

CONSUMER BENEFITS, TOO

The man who uses one package of cigarettes a
day, the tax on which is six cents, pays in taxes $21.90
a year. Under the statement by th*e spokesman for
the great companies, none of the tax reduction would
be retained by the companies. We have no illusions
that the great companies are benevolent associations
formed and conducted for the benefit of the growers.
They were organized and have been conducted and
will be c()nducted for the benefit of the stockholders.
The profits they have made have been out of all pro-
portion to the return to the tobacco growers. But
under this aihninistration the full benefit of the re-
duction of taxes will be passed on to the consumer.
With the inevitable increase in the consumption of
cigarettes, with a certain and inevitable increase in
the price of tobacco because of the increased demand,
in my judgment, the manufacturers both of the present
fifteen-cent and the present ten-cent cigarette will
make as great or greater profits than tliev now make
because of the greater consumption. That is the only
chance they will have to make more, by increasing the
consumption of cigarettes and tobacco products, lead-
ing to an incieased demand for the raw tobacco.

From 1919 to 1929 the average for hurley tobacco
was, as I recall, between twenty-one and twenty-two
cents. From 1929 to 1934 the average was between
6

ten and eleven cents. I am as certain as I am of the
rising of the sun that with this reduction the average
for hurley tobacco will equal or exceed the average
paid before '29. T believe it will be higher than that
average, but that is a matter of opinion, the correctness
of which can not be proved until the reduction is made.
Speaking from my own experience, with full ap-
l)reciation of the fact that you gentlemen may know
more than I, I do not believe that many, if any, realize
to the full the possibilities of the reduction in the tax
on tobacco, nor the vital part that tobacco plays in
the well being and happiness of the people of the state.

IS BOON TO FARMERS

I do not take time to go into the figures. I only
ask all of you to ascertain the full facts for yourselves
and clothe them with your imagination. There are
more than 100,000 tobacco farmers in Kentucky, the
great majority of whom are today just hanging on
the edge of self-sustained subsistence. An increase
of 50, or if I am correct, a 100 per cent, in the price of
tobacco this coming year, which will come with the
reduction of the tax, will raise them and their families
above the danger of being submerged. If they are
submerged the Government, under the policy of this
administration, must and will care for them, which
will cost more than the Government will lose through
the reduction in the taxes.

Not only will those hundred thousand tobacco
farmers be benefited, but every one in tJieir com-
munit}' — the doctor, the lawyer, the merchant, the
school teacher, the laboring man, every one who is
benefited by the circulation of the golden stream that
comes from the sale of the gohlen leaf— will be bene-
fited and communities made more self-sustaining, with
what I believe the certainty, most assuredly the possi-
bility and probability that instead of requiring aid
from the Government they will be able to extend aid
to others.

There are some mysterious forces opposing the
I)assage of the Vinson bill. What they are I have been
unable to ascertain sufficiently accurately to make
public statement. Yet whatever they are they should
be exposed to the light that all may*know who favors
and who opposes this reduction.

THE GRADUATED TAX

Just a word, and only a word in regard to the so-
called graduated tax as favored by Mr. Axton and by
Brown-Williamson. The only man whom I know who
declares himself in favor of it who has no direct or
indirect financial interest in the manufacture of ten-
cent cigarettes is Mr. James ('. Stone, for whose
opinion I have great regard, yet who in a two-hour
conversation that I sought with* him when I was trying
t(» inform myself and studying the tpiestion convinced
nie ])y his argument in favor of the gradimted tax that
It was mipractical and would be of inestimable injury
to the tobacco growers.

I want the manufacturers of ten-cent cigarettes
to succeed; I want every factory that furnishes an
outlet for the growers of tobacco to succeed and ex-
pand. But T am absolutely convinced of two things;
first, that the imposition of the graduated tax would
drive the manufacturers of all cigarettes to the ten-
cent cigarettes, re<|uiring a lowering of the price paid
for tobacco, and, funlier, that there is no possibility

• • . It's irritating
and it means . . .
jangled nerves!

Yes, it's irritating to listen to that
constant, tuneless humming — and
more than that, the humming is a sign
of jangled nerves.

If you notice any of those tell-
tale nervous habits in yourself — if
you whistle through your teeth —
juggle your keys — drum on the table
— then it's time to start taking care
of yourself.

Get enough sleep — fresh air —
recreation — and watch your smok-
ing . . . Remember, you can smoke
as many Camels as you want Their
costlier tobaccos never jangle your
nerves.

HAVE FUN!

Send for¥KEE Game Book

New — illustrated book of 20 ways to
test nerves. Fascinat-
ing! Amazing! "Show
up" your friends. See
if you have healthy
nerves. Send fronts
from 2 packages of
Camels with order-
blank below. . . Free
book is sent postpaid.

CUP AND MAIL TODAY! ■

R. J. Reynolds Tobicco Company I

Dept. 112-D, Wlnston-S»lem, N. C. j

I encloae fronts from 2 packs of Camels. |
Send me book of nerve tests postpaid.

I I

Nam* .._„. I

I I

■ Sh^*t..... .. -

I " I

I City StaU I

' Offer axplTM DMwmbarat. 1934

COSTLIER TOBACCOS

Camels are made from finer, MORE EXPENSIVE
TOBACCOS than any other popular brand of cigarettes!

SMOKE AS MANY AS YOU WANT...
THEY NEVER GET ON YOUR NERVES!

(CofUimied on Page 16)

Tkt Tobacco World

June IS. 1934

Decrease in Manila Shipments Betokens

Increase in Quality

ERE'S an important cigar man wlio is ac-
tually elated over advance news that May ship-
ments in his branch of the industry have de-
creased at least 20 per cent, in comparison witli
April. ''That's the most hopeful sign that has
appeared for a long time," he says. Who is this gen-
tleman, and how does he explain this paradoxical com-
ment / Just a minute. Meet Mr. C. A. Bond, tobacco
agent for the Philippine Government since 1917, who
has just completed a tour of the country in the interest
of ^lanila cigars.

"If the released figures show^ tlie 20 per cent, de-
crease under April, as indicated b>' the advance
unofficial reports," he will tell you, '''that can mean
only one thing, namely, that the campaign to put an
end to the shipment of inferior merchandise from the
Philippines to this countr>^ has proved inmiediately
successful. And when I refer to that as the most hope-
ful sign that has appeared for a long time, I mean it is
tangible evidence of the partial eradication of an evil
which in my opinion, is responsible more than any
other single factor for the decline of cigar smoking,
and that is the offering for sale of cigars of such a
quality that men got iuiything but pleasure from them
and, through them, became estranged from the cigar
as a form of relaxation.

''When the unsatisfactor}^ quality of some of the
cigars was suggested to Governor General Frank
Murphy, of the Philippines, as the reason for the de-
cline in Manila business as compared to that of several
years ago, an investigation was started. Under his
direction, the Collector of Internal Revenue notified
Manila factories that Government approval would be
refused to shipments of all cigars to this country under
a price of $17 less 2 per cent, wholesale, excepting ship-
ments to States imposing special taxes, where the mini-
mum price would be $16.50 less 2 per cent. My col-
league, David Moms, and I were instructed to report
at once ever}^ instance of a violation of this ruling that
came to our attention. W^e are engaged in that work
now.

''So it is no paradox at all for me to rejoice over
the reported decrease for May. I am convinced that,
with the elimination of practices which have allowed
this country to be flooded with a cheap product from
the Philippines, the Manila cigar will rise from its
present too general acceptance as a 'two-fer' and will
resume its old position as a good cigar of high quality.

"There w^as never a time when the trade was as
clean as it is right now. The cigars are coming in a
good, undamaged condition. We have eradicated
worm trouble. We have improved shipping facilities,
obviating the danger of mold. And by administrative
order of the Clerk of Internal Revennue, no shipment
can be made until the cigars have been manufactured
and completed at least two weeks, when they are boxed
and carefully prepared for shipment, so that resweat-
ing is no longer required; the cigars do not deteriorate
and become musty.

"There is no doubt in my mind that the principal
cause for the present condition of the cigar business
has been deterioration of quality and lowering of price.
For that reason we are hoping for a speedy approval

8

of the tobacco codes, which, we believe, will help to pre-
vent future price reductions and restore competition
on the basis of quality rather than on the basis of price.

"We have been through this low quality-low price
situation before. In fact, it was back in 1915 that,
because of a falling-off in shipments due to what
seemed like a policy of 'any old thing at any old price',
the Philippine Government passed a law requiring an
inspection of shipments under a standard carrying a
Government guarantee. Shipments then jumped from
(iO million in 1915 to 110 million in 1916, 240 million in
1917, and 320 million in 1920.

"The Islands, you know, are proud of their cigar
industry, and they have good reasons to be. Tobacco
culture there dates back to 1578, when a patch of to-
bacco was grown in La Union Province from seed
brought from Mexico, by Padres Gomez and Sebastian.
There is a tradition, too, that another priest, Padre
Jose Garcia, grew superior leaf in the Cagayan Valley
from seed he brought from Cuba.

* ' The first shipment of Manila cigars to the United
States came to Salem, Mass., in 1818, and until the
close of the Civil War Manilas were imported cigars
commanding the highest price in American cigar
stores. Since 1909, when free trade was introduced
between the Islands and the United States, Americans
have been buying Manilas in conunercial quantities.

"The Philippines export more cigars than any
other country in the world. Their factories keep 20,000
men at work. The cigar industry is the only one in
the Islands employing handwork on such a grand scale.
And it is significant, on the other hand, that the Unite<l
States merchandise sold in the Philippines is all highly
])roces8ed. That is still another reason why it is good
to note the signs of a return to the old conditions of
quality manufacture of (piality Manilas, assuring the
continued employment of these 20,000 handworkers."

SGHOPBACH-WHITE

VERY i)retty wedding was solemnized at 4:30
P. M. on June 2d, at the home of Mr. and Mrs.
I. B. White, when their daught^^r. Miss W^ilhel-
mina R. W'hite became the bride of Carl Schop-
bach, of Collingswood, N. J. The house was beauti-
fully decorated with spring flowers, which made a fit-
ting setting for the ceremony. The bride was given in
marriage by her father and was attended by her sister,
Miss Amelia White. Frank Shrewsbury, a cx)llege
chum of the groom, acted as best man.

The bride is a graduate of Ursinus (^ollege, where
she received her B. A. degree in 1933, and the groom
is a graduate of Ilaverford College, where he received
his B. A. degree in 1932.

The father of the bride, I. B. White, has been asso-
ciated with the old established firm of John Wagner &
Sons, for a number of years, as manager of their cigar
department, and is w^ell knowTi throughout the retail
cigar and tobacco industry in this territory.

After a honeymoon trip to New York City and New
Jersey seashore points, the happy couple will reside in
Collingswood, N. J.

1954. LiociTT * Mms Tomcco Co.

^«»* IS, 1934

Tobacco Markets and Conditions as

Reported from Abroad

AUSTRIA — Accordiiiof to American Commercial
Attache T. L. Hughes, reporting to the Tobacco Divi-
sion, De})artmeut of Commerce, the vohime of sales of
tJie Austrian T()l)acco Monopoly during the first two
months of 1934 sliowed a slight increase, but since the
greater percentage of retail sales consists of the
chea|)er \'arieties of tobacco products, there was a de-
cline of about 5 per cent, in revenues.

The consumption of cigars, cigarette tobacco and
pi})e tobacco increased, sales of snuff were maintained
at about the same level, Init the quantity of cigarettes
aiul chewing tobacco consumed during the i)eriod de-
clined as compared with the same period of 1933.

BKITISH .MALA V A— Imports of leaf tobacco into
British Alalaya during 1933 amounted to 2,588,287
pounds, of which 37.7 per cent., or 966,301 pounds, were
imjmrted from the United States as against 1,957,331
pounds, or ap})roximately 50 per cent., of the 1932 total.

According to a report from the office of the Ameri-
can Trade Commissioner at Singapore, made public
by th© Tobacco Division, Department of Commerce,
British Possessions furnished 1,407,809 pounds, or 54.4
per cent., of 1933 leaf tobacco imports, as compared
with 40 per cent, of the total during 1932. The volume
credited to British Possessions in 1932 was 1,544,250
l)ounds out of total imports of leaf amounting to 3,877,-
713 })ounds.

lu 1928 the United States supplied 1,192,840
pounds of leaf; in 1929, 1,478,691 pounds; in 1930,
2,940,213 pounds; in 1931, 2,451,387 pounds; in 1932,
1,957,331 pounds. This is an annual average of 2,(M)4,-
090 i)ounds, or 30.8 per cent, of all leaf imported during
the five years. During the same period of live years
British Possessions funiished 60 per ceut. of ali leaf
imports. ^ ^^

The United Kingdom practically dominates the
foreign cigarette market of British Malaya through
one large British concern with factories in* the United
States and England. Up to 1931 large shipments of
cigarettes were made from the United States but in
that year the vohime was small and in 1932 and 3933
shipments from the United States were negligible when
compared with total volume imported. Official records
for 1!)33 credit the United Kingdom with 5,748,334
pounds, British Possessions with 520,920 pounds and
the T'nited States with 4731 pounds, out of total im-
ports of cigarettes amounting to 6,652,762 pounds.

Cigarette imports into British Malaya have shown
a downward trend since 1925. The volume imported
that year was 15,398,156 pounds, dropping b>- a few
million pounds one year after another until lf)32, when
the volume reached 5,160,020 pounds. There was an
increase in 1933 amounting to 29 per cent.; however,
the increase in total value was less than 1 per cent., the
respective values amounting to $10,625,958 and $10,-
690,204.

The large imports of cigarettes from the I'nited
States during the years 1927 to 1930, inclusive, were
made almost entirely by the large British company be-
fore mentioned. As indicated, large amounts of these
cigan'ttes were reshipped to nearby markets, princi-
pally to Netherland India. A changed company policy

10

caused practically all of the re-export business from
Singapore to be stopped in 1931. It is not expected
that imports of American cigarettes during 1934 will
show any appreciable change as compared with those
made during the years 1932 and 1933.

As regards imports of American leaf tobacco, those
during 1933 were substantially below the quantities in
the preceding years, owing primarily to the fact that
the Singapore cigarette-making plant of the large in-
ternational concern aforementioned curtailed its activi-
ties steadily during that year and by the end of 1933
operations had practically ceased. Small amounts of
leaf remaining on hand were still being used during the
early part of 1934 for the manufacture of cigarettes.
Certain amounts of American leaf are expected to be
brought in for use by the plant at Kuala Lumpur but it
is expected that this leaf will be received from the com-
pany \s warehouses in England rather than from the
United States direct. Accordingly, it is predicted that
imports of American leaf from the United States direct
will be extremely small during 1934.

CHINA — The new Chinese cigarette tax schedule
adopt<?d in early December, 1933, which represented
more than a 45 per cent, advance in the tax rate on the
second or low grade cigarettes constituting the bulk
of the trade, is said to be without question a strong
factor virtually forcing manufacturers (in efforts to
absorb the increased tax without raising prices any
more than necessary) to reduce to a greater degree
than ever before the American leaf content in many of
tlieir brands — in fact, to eliminate American leaf en-
tirely from many low priced brands of cigarettes.

In an analysis of the Chinese tax situation as it
affects the consumption of American tobacco in China,
American Assistant Commercial Attache A. Bland
Calder advises the Tobacco Div^ision, Department of
Commerce, that since the institution early in 1928 of
the ** National Cigarette Tax" of 22M.» por cent, on
domestically manufactured cigarettes, the tobacco
business has undergone periodical increases in taxa-
tion as necessitated by the continually pressing finan-
cial problems of the National Government at Nanking
in the vicissitudes through which it has passed since
its formation on April 12, 1927.

SUMATRA — Although it is much too early to at-
t( mpt a forecai^t of the 1934 Sumatra tobacco crop now
being planted, there are certain indications of its prob-
able quality and size, as compared with that of 1933.
American Consul D. W. Maher advises in a report,
made public by the Tobacco Division, Department of
Commerce, that no definite idea of the planted area can
be had until some time lat-er when the planting is com-
pleted, but there is reason to believe that the total area
will be about the same as in the preceding year. The
large producing companies are making no effort to
reduce their production from the 1933 figure, and moht
of them are preparing planting ground approximately
equal to that of 1933.

The fact that recent crops have been the smallest
in the past fortv-five or fortv-six vears allows the selec-
tion of the best land, both from the point of view of
production and freedom from pests and disease. It

Tht Tobacco World

GIVE

A WHIRL . . .

and

TUNE IN
THE DIMES!

SIR WALTER

RALEIGH

\

TARGET

CIGARETTE-
'TOBACCO'

Wings

A good number? Right! The new Dial
smoking tobacco is a smooth blend of fine
white Burley tobaccos. Crimp — cut to
make it a cool, slow burner. Mild, but just
mild enough to keep 'em coming back
for more. A full one and three-quarter
ounces to the tin — at least four more
pipefuls than in the regular one-and-a-
half-ounce tin. FREE cigarette papers.
And it sells for a dime at a nice profit to
you How's your stock?

DIAL

^Mv

DGLER

SMOKihgtoBACC

l^iLM^

-UBHISMfc DOMESTIC
llCABtTTt TOBACCO

lowjiol^)**^^'

BROWN & WILLIAMSON TOBACCO CORPORATION, LOUISVILLE, KENTUCKY

Brown hk Williamson products are designed to bring
you the motx profit in all lines and prices. Are you get-
ting your share of profit from these live selling items:
Kooi, the largest -selling IS-cent mentholated cigarette;

^M'U- IS, 1934

Raleigh, now selling at the price of ordinary cigarettes;
Wings, the popular quality lOcent cigarette; Sir
Walter Raleigh Smoking Tobacco, 15 cents and famous
for Us mildness; Target, a genuine blended cigarette

tobacco for 10 cents; Dial Smoking Tobacco, a
smoother blend of Burleys for a dime — full I ^4 oz. to
tin; Bugler, a blended cigarette tobacco for a nickel;
and Golden Grain, the big S-cent bag of roll-your-own.

11

could be assumed that with similar weather couditioiis
the 1934 crop would be about the same as the preceding
one. In 1934, however, the month of January was one
of the wettest on record — a condition unfavorable to
the preparation of seed beds and tobacco fields, as well
as unfavorable to the harvesting of paddy for the
workers — which is a consideration of more importance
than usual because of the increased price of rice. Over
large areas of the growing section rain w^as recorded
every day in January, and it was believed for a while
that the crop would be adversely affected, but the
month of February was unusually dry, with short but
frequent rain showers — a most favorable condition for
development of the young plants and it is now evident
that the weather has had practically no ill effect.

The Sumatra producers are still facing conditions
that have seldom been worse. The demand for cheaper
cigars and large unsold cigar stocks have a direct effect
on the producers of the expensive Sumatra wrapper.
The American market last year took only 30 per cent,
of the amount of Sumatra tobacco imported in more
favorable years, and the amounts taken by the German
market w^ere similarly reduced. There is little reai?on
to believe that these important markets will improve
greatly in 1934. There has been some local agitation
to take measures against the high tariff imposed on
tobacco by the United States. Although the Dutch
buy only about 5 per cent, of the total American ex-
ports of non-manufactured tobacco, the producers are
inclined to believe that a plan to raise the duty on
tobacco imported into Holland might secure a more
favorable rate on Sumatra tobacco imported into the
United States. The local producers are also disturbed
by the possibility of increased use of the cheaper Java
wrapper tobacco, as illustrated by the tendency of t)ie
German manufacturers to use as wrappers grades of
tobacco formerly used as binders.

On the brighter side of the picture is the large re-
duction in stocks. According to figures published
locally, the excess of world consumption of Sumatra
leaf in. 1933 over sales in that year amounted to 37,000
bales, which indicates that there are no more large
stocks on hand to depress the market. Prices at the
1934 sales are consequently expected to be higher than
in 1933, provided that world consumption stays around
the same level. Even if this should be the case, the
producing companies can expect little profit, because
they have less tobacco to sell. To the producing com-
panies a substantial rise in price is particularly im-
portant, to make up for their lower production and
decreased reserves, and only a very modest dividend on
capital stock can be expected at best. After several
years of heavy losses it is to be expected that most
of any profit made will be used to strengthen the finan-
cial position of the producing companies.

CANADA — Canadian tobacco production in the
past five years has been featured by an increase in
acreage of bright flue-cured tobacco, mainly in the
largest tobacco region of Canada, in Southwestern On-
tario. It is stated by American Consul D. C. Woods,
in a report made public by the Tobacco Division, De-
partment of Commerce, that the production of the flue-
cured type was about 23,000,000 pounds in 1933 against
8,500,000 pounds in 1928. This was offset partly by a
decrease in production of dark tobacco. The 1933
Burley crop was estimat^nl at 9,000,000 pounds. Total
production of tobacco in Canada in 1933, of which 85
per cent, came from Norfolk and P^ssex Counties on the
shores of Lake Erie, is estimated at about 32,000,0f)0
pounds, against 54,094,000 pounds in 1932. Drought

li

and high winds reduced the 1933 crop and impaired its
quality. Prices averaged 16 cents a pound in 1933
against an average of 11.3 cents in 1932, so that the
return to farmers was $5,201,490 against $6,088,300 in
1932, and $7,177,540 in 1931. About one-third of the
Canadian crop is exported, practically all going to the
United Kingdom.

The reduction of the Canadian excise tax from $6
to $4 per thousand has aided the demand for cigar-
ettes, but their retail prices are still twice as high as
for similar grades in the United States. Cigar con-
sumption in Canada has dropped from 180,000,000 in
1930 to about 114,000,000 in 1933. This has been accom-
panied by a shift to the cheaper priced cigars. De-
creases in the use of plug tobacco have been accelerated
since 1930, but cut tobacco sales, until recently, showed
n small increase. The Ontario tobacco trend favors
further reductions in crops of Burley and cigar leaf,
with more effort to produce varieties for the require-
ments of the British market. Increased domestic ab-
sorption of flue-cured is expected to be counter-bal-
anced by a reduced export demand.

ROTTERDAM— Conditions in the Netherland
market for American leaf tobacco underwent no
changes of any impoiiance during April, and a very
quiet tone prevailed, with prices practically unchanged.
American Vice Consul H. L. Rose advises that in the
trade it is considered that inactivity still comes from
excessive replenishment of stocks by both manufac-
turers and the smoking public prior to the going into
effect of the new Netherland excise law on April 1,
1934. The dullness is also ascribed to the unfavorable
general situation and the greatly reduced spending
power of the public.

As made public by the Tobacco Division, Depart-
ment of Commerce, the report of the vice consul states
that some transactions were made in Burley and Bright
Virginia types. One contact alleged that during April
United States firms had repurchased Bright Virginia
tobacco from Netherland owTiers at a premium of $1.50
per 100 pounds. There was little business in Kentucky-
Tennessee varieties, but a fair demand existed for
Seedleaf tobacco, which was offered at very cheap
prices. Seedleaf is principally used as binder material
for cigars and is competing against Java grades. A
revival is not expected in the very near future by the
men of the trade consulted.

Total imports into the Netherlands of American
leaf tobacco during March 1934 (figures for April are
not yet available) aggregated 1,060,412 pounds, gross
weight, valued at 226,000 florins. As against March,
1933, a decrease by weight amounted to 3.2 per cent.,
but as compared with Febnmry, 1934, the weight im-
port^^d declined by 59.3 per cent., principally because
of heavy imports of Virginia and Kentucky tobaccos
during February' of this year. The value dropped by
24 per cent, as compared with March, 1933, and by 54.2
per cent, as against February, 1934.

YUGOSLAVIA— The State Monopoly of Yugo-
slavia has concluded a special agreement with the
French Tobacco Monopoly providing for the sale of
Yugoslavia cigarettes in France, and of French cigar-
ettes in Yugoslavia. Heretofore, foreign tobacco prod-
ucts w^ere not on sale in Yugoslavia. Four brands of
Yugoslav cigarettes are already on sale in France.
The following French brands will be available in Yugo-
slavia: Week-End, Oitanes-Maryland, Gauloises-Mary-
land, and Gauloises-Caporal-Maryland. (iVmerican
ConsulR. P. Clark.)

Th€ Tobacco World

Dealers say:

El Producto appeals
to my pocketbook — it
always builds profitable
quality business."

"^

. «. ». CICA« CO. ,1 N C. ,F H I LA.,»A.

EL PRODUCTO

for real enjonmsmt 1 Q cents^

GERMANY— The Federal Ministry of Economics
has decreed new regulations for the German cigarette
industry to include those who had refused to join the
toimer voluntary cartel agreements. All factories are
included, prices are fixed and production regulated.
The new agreement regulates the sale of cheap cigar-
ettes which were tiie direct result of the crisis and the
reduced public purchasing power. These cheap cigar-
ettes account for 17 per cent, of total consumption.
All advertising of these brands is prohibited. The
erection of new cigarette factories, as well as the en-
hirgement of existing plants, has been prohibited.
(American Acting Commercial Attache Douglas
Miller.)

SWEDEN— The Swedish Tobacco Monopoly Com-
pany has reported a net profit of 9,700,000 crowns for
11)33, compared with 7,420,000 crowns for 1932. The
l)oard of directors recommended a SVii per cent, divi-
dend on both preferred and common stock, requiring
1,650,000 crowns; that the earnings and price regulat-
ing fund be increased by 2,000,000 crowns; and that
0,040,000 crowns be added to the cash reserve. During
iri33 the Monopoly delivered 73,660,000 crowns to tlie
Stat<3 in the form of tobacco taxes compared with 72,-
:>20,000 crowns in 1932. In addition, the State, as
holder of the common stock, has received 1,590,000
crowns in dividends for the year 1932 and 10,000,000
crowns drawn from the reserves of the company, or
altogether 85,250,000 crownis. Since 1915, when the
Monopolv was established, the company has paid to the
State in *the form of taxes, dividends, etc., a total of
1,108,000,000 crowns. (American E. E. & M. P. L. A.
Steinhardt)

lunc 15, 1934

CZECIIOSLOViUvlA— Kevenues of the Tobacco
Monopoly of Czechoslovakia in March reached 147,-
000,000 crowns compared wdth 156,000,000 crowns in
^larch, 1933. During the first quarter of 1934, revenues
amounted to 401,000,000 crowns compared with 418,-
000,000 crowns during the first quarter of 1933. (Amer-
ican Commercial Attache S. E. Woods.)

CUBA — Figures furnished by the Cuban Tobacco
Defense Conmaission show that exports of tobacco and
tobacco products from Cuba during April, 1934,
amounted to $967,272 as against $1,113,220 during
April of the preceding year. Gains were registered in
exports of cigars, cigarettes, and smoking tobacco, com-
pared with April, 1933. Leaf tobacco suffered a de-
cline. The decline in leaf was nearly 33 per cent. In-
creases were: Cigars 28 per cent., cigarettes 88 per
cent., and smoking tobacco over 200 per cent. During
April, 1934, exports totaled 1,257,637 pounds of leaf,
4,363,234 cigars, 4,533,257 cigarettes, and 41,167 pounds
of smoking tobacco. Exports of tobaccos during the
first four months of 1934 were valued at $4,574,501 as
against $3,919,017 for the corresponding period of 1933,
a gain in value of approximately 17 per cent. (Ameri-
can Commercial Attache W. J. Donnelly.)

John Flanigan, manager of the M. J. Dal ton stand
at 617 Chestnut Street, has arranged an attractive win-
dow display featuring appropriate gifts for Father's
Day. Needless to say the front and center of the dis-
play is occupied by cigars in popular shapes, sizes and
prices.

l)HIbADEl2«>MIA.

MAY BAYUK'S PEAK MONTH

[IC'CORDIXG to a statcnuMil ivcciitlv issued bv
H. 8. liothschild, prosidoiit of Hayuk Cigars,
Inc., shipments of cigars for the inontli of
May were the largest for any month in the
history of the company . . . You can't get within a
block of that phice without sensing tliat ])ig business is
going on . . . Joseph L. Sims, Bayuk sah»sman, is put-
ting in some good work in the Peoria (111.) territory
where sales of the company's Ijrands are supervised by
the St. Louis branch office . . . AVagner «S: Surendorf,
Logansport (Ind.) assisted by Bayuk salesman, ('. M.
Bristow, recently comi)leted a successful drive for
greater distribution and sales of Bayuk Phillies in that
sector . . . Frank J. ]\Iiller, chief clerk of the Koches-
ter (X. Y.) branch, is convalescing from an illness
which caused his al»sence from dutv during the last
several weeks.

WILL & JENKS ON THE GO

||S total cigar withdrawals continue to increase,
they're fueling pretty good, thank you, up at
G. H. P. head(puirters over the gratifying
share of the bigger business that is coming to
El Producto and La Azora . . . Frank P. Will, execu-
tive vice-president, has left for a ten-day trij) ihrougli
the Middle West . . . I). A, Jenks, assistant general
sales manager, has just returned from a sales jaunt
that took him as far as the Twin Cities . . . W. B. J^)in-
sette, president of Myers-Cox <(>., distri])ut<>rs of
G. H. P. brands in the DubuipU', Iowa, section, stopped
at the factory on his way to the distributors' conven-
tion in Washington . . . Sam Hirsch, lA' the Estate of
J. X. Hirsch, resjK)nsil>le for the good showing of El
Producto and La Azora in Atlanta, (Georgia, and there-
a])outs, ran up from Washington after tlie convention
and made a tour of Philadelphia under the capable
guidance of Mr. Will.

Jolin Wagner & Sons, local distril)utors, report a
splendid business on Don Sebastian, (Jarcia y Vega,
Monticello and their Wagner brand of cigars, particu-
larlv in the Class C and 1).

Joe Perez, of Marcelino Perez & Co., 'rampa manu-
facturers, was a visitor at Yahn & McDonnell, local
distributors, last week, and reported business increas-
ing on his R-edencion brand.

Trade Notes

Benjamin Lumley, representing the Garcia y Vega
factory in this territory, is now on a trip through West-
ern Pennsylvania, where he is visiting the retailers and
distributors in that section.

James Heaney, representing the American To-
bacco Comi)any, on their Antonio y Cleopatra brand,
was in town last week visiting the local distributorof
his brand.

Ilei-man A])rams, recently appointed representa-
tive for the Medalist factory, in this territor}', has been
doing a splendid job on this brand here and sales are
showing a fine increase.

Yahn & McDonnell have taken on the new Julep
cigarette for distribution here and an aggressive sales
campaign will ])e waged on the brand soon. The Julep
is Mint Havored and retails at twentv for fifteen cents.

Jolin L. McGuerty, Komeo y Julieta representative
in the Cnited States, was a recent visitor in Philadel-
j»hia, and reported business increasing on his brand.
J<»hn Wagner &: S(»ns, local distributors of Komeo y
.Julieta, also report a fine increase in demand for this
l)raiid, and are continuallv oversold on manv sizes.

Abe Caro, ()i>timo representative, was in town last
week and was highly pleased with the progress Optimo
is niaking in this territory under the able guidance in
distribution of Yahn & McDonnell. Abe stated that
this increase was in line with what this brand is doing
also in other sections of the count rv.

14

H. L. Bush, Col well Cigar Machine Corp. represen-
tative, has also taken on the .1. W. Giles (of Philadel-
phia) account, and is now accepting orders for both
these houses, which include bunch machines and sup-
Iilies, and also replacement parts for bunching and
stripi)ing machines.

Tk* Ttkaeeo WorU

News From Congress

_. 'AND

F E D E R A L

Departments

LTHOUGH given the hearty support of the
House Ways and Means Conunittee, consider-
able doubt prevails as to whether it will be pos-
sible to pass the tobacco tax reduction bill dur-
ing the present session of Congress. Much depends, it
is admitted, upon when the session adjourns. If it ends
.June 16, it is practically impossible that action will be
secured, but if Congress lingers on the tax bill and sev-
eral other measures mav ''float with the tide" and be
l>assed. As reported to the House of Representatives,
the tax on light cigarettes would be cut from $3 to $1.80
])er 1000, and on heavy cigarettes from $7.20 to $4.32
per 1000; the levy on cigars weighing not more than
three pounds per 1000 would be cut from 75 to 45 cents;
on cigars retailing at not more than five cents each,
from $2 to $1.20; on cigars selling at not more than
eight cents, from $3 to $1.80; on cigars selling at not
more than fifteen cents, from $5 to $3; on cigars selling
at not more than twenty cents, from $10.50 to $6.30; and
on more expensive cigars, fnuu $13.50 to $8.10. The
tax on tobacco and snuff would be reduced from 18 to
10.8 cents per pound.

**We feel that this proposed horizontal reduction
of 40 per cent, of the taxes on tobacco products will
protect best the interest of the farmer, will save untold
millions of dollars annually to the wage earners and the
tobacco consumers of this country, will provide a
proper and just return of revenues to the Treasury,
ultimately making up for temporary decrease, all with-
out any added profit per unit to the manufacturers,"
the conunittee held.

Outlining the history of tobacco taxes, which were
increased materially during the W^jrld War period, the
nunittee in its report took the attitude that the pres

CO

ent tobacco taxes are prohibition taxes, the last increase
— to present levels — having been made after ratification
of the Eighteenth Amendment. Accordingly, now that
prohibition has been repealed, the conunittee feels that
the taxes on tobacco should be materially reduced.

Cj3 Ct3 CJ3

I^( )WKHS of cigar-loaf tobacco of the stemming
irrades are assured of prices aptiroximately
doubh* those of last s(»ason for 18,500,000
I)ounds of their holdings of tobacco by a mar-
keting agreenu-nt announce<l by the Agricultural Ad-
justment A«lniinistration June 11th. Hloch l>rothers
Tobacc*) Company, Liggett & Myers Tobacco Comi)any,
I*. Lorillard Company and Scotten-Dillon Ccunpany are
signatory to the agreement, etTective as of December
1st, lastj and applying to tobacco produced in New

June J5, 1934

From our IVashington Bureau SiZAiBit Building

York, Pennsylvania, Ohio, Indiana, Minnesota, Wis-
consin, Connecticut, Massachusetts, New Hampshire
and Vermont.

^^O^m ^hA^ ^h^&^

CJ3 Cj3 CS3

FFIXIXd his signature to the corporation
bankruptcy bill. President Roosevelt this month
paved the way for the release of numerous cor-
porations from the hands of receivers. Under
the act, all creditors will be bound to accept a court-
approved plan of reorganization to which holders of
two-thirds of the total amount of claims and of a major-
ity of the stock have agreed. The legislation is ex-
pected to save to industry numy corporations which
otherwise would be forced to go through bankruptcy
proceedings, in many instances eventually being put out
of business with consequent increased unemployment
and loss of investment.

Any stockholder or creditor may file a petition for
reorganization of a distressed corporation if backed by
holders of 25 per cent., in amount, of each class of
claims, amounting to 10 per cent, of the total; if the
corporation is not actually insolvent but merely unable
to meet its obligations, holders of 10 per cent, of each
class of stock, and at least 5 per cent, of the total, must
agree. A debtor corporation, however, may itself file
a petition without securing the approval of creditors or
stockholders.

Plans of reorganization are to provide for the scal-
ing down of the interests of both creditors and stock-
holdeis to a point where the company can eventually

( (

pay out

> »

Cj3 Ct3 Cj3

AXl'FAlTURERR in the tobacco industry in
need of additional capital will be able to satisfy
their necessities in the near future through the
Reconstruction Finance Corporation, which
has been authorized by Congress to make loans direct
to industry. Under the terms of the legislation, the
corporation would be empowered to make advances on
promissory notes, acceptances, rediscounts or other col-
lateial, until January 31, 1035, to any established indus-
trial or commercial business, to enable it to obtain
working capital, reduce or refinance its outstanding
indebtedness or make plant improvements or replace-
ments. Such loans would run for periods as long as
five vears.

(Continued on Page 17)

t$

Justice Calls for Tax Cut

(Continued from Page 6)

of any bill ^oiiii; tlirouiili coiiiiioss this year nor next
year rcHliK'int»' the tax on tol)acc() pioducts oxcei)t the
bill providin,i»- for the 40 ])er cent, horizontal rodnction.
I base that statement n])()n statements made to
me by members of the Ways and Means Committee,
by other representatix is and Senators who have jj^iven
the snbieet most earefnl stndv and have reaehed
definite eoneliisions that the uradiiated tax would be
injurious instead of beneficial to the tobaeco growers,
liowever beneficial the manufacturers of the ten-cent
cigarettes mav think it would be to tliem.

WILL INCREASE CONSUMPTION

There is no one — tobacco grower, smoker or
chewer, manufacturer, ])ublic official — I have ever
heard deny that a liorizontal reduction of the taxes
would increase the consumi)tion ot' tobacco and would
benefit both the grower and the consumer.

From 191 J) till IILM) the use of manufactured cigar-
ettes increased; from V.)2\) to IJKU the consumption of
manufactured cigarettes has decreased, the consump-
tion of roll-your-own cigarettes increased enormously.

The tobacco growers have i)een largely inarticu-
late. Now a bill representing their desire, their just
demand is before Congress favoiably rei)orted by the
Ways and Means Couuuittee. There is assurance

given by such distinguished and influential Senators
as Senator Barkley of Kentucky, Senator Byrd of Vir-
ginia, Senator P.ailey of North Carolina, Senator
Byines of South Carolina, Senator Goldsboro of
^laryland, and others eciually interested in the wel-
fare of the tobacco growers that the bill providing for
the 40 per cent, horizontal reduction can pass the Sen-
ate and that a bill ])roviding for the so-called grad-
uated tax has no chance to pass either house of Con-

gress.

If we can make our voice audible, can make our
conviction as to the injustice of the i)resent tax heard,
can nuike our demand for the repeal of the fax de-
nominated in the sub-committee report as "uncon-
scionable" heeded by those in high i)osition this re-
duction can and will be made at this session of Con-
gress, so that the next cro]) will be sold to meet the
increased demand. Kach of us can do something. It
needs a thorough co-0])eration of all to do what is
needed.

The forprjnwfj is the text of an address on *'The
Tohareo Tax/' delivered at the Thursday, June 10th,
luHeheon meeting of the Lexingtrm, Kg., Uotarg Club
bg C(d. Deaha Breekiuridge, editor of the Lexingtou
Uerald,

Growers Must Divide with Share-Tenants

R()WP]KS of flue-cured tobacco who have
signed adjustment contracts on which price-
equalizing payments on the VXVA crop are being
made, are instructed to divide these i)ayments
with share-tenants or share-crop})ers, under the tenns
of the contract regardless of tlel)ts or obligations due
producers by tenants, according to a decision of the
tobacco section announced today by the Agricultural
Adjustment Administration.

To date over $:i,051,l)57 in such payments have been
disl)ursed to growers by the Administration. Contract-
ing growers who marketed all or a i)art of their V.VM^
production before the marked increases in ])rice for
this type of tobacco were eligible to apjily for price-
equalizing payments.

In a letter to all county agents in the flue-cured
tobacco counties, J. B. llntson, chief of the tobacco sec-
tion, has called attention to the fact thai \inder the
terms of the contract, ])rice-equalizing payments are to
be divided among ])roducers, share-t^Miants, and share-
croppers, in the same proportion as the VXV.^ crop, or
the proceeds of the cro]) were divi»led, and that such
payments are not affected by the existence of any lien,
mortgage or debt arising out of the production of the

1J)33 crop, or othenvise. Such payments, tTie Instruc-
tions stated, cannot be assigned, but mu^t be phiced in
the actual possession of the tenant.

"We also desire to advise landowners am! pro-
ducers signing all kinds of toliacco contracts before
tenants incur obligations, that the adjustment pay-
ments to contracting producers, which will be made
after the 1934 crop is sold, must be divided as the pro-
ceeds of that croj) are divided, in the same manner as
are the price-e(pializing payments," stated Mr. Hutson.

** These instructions are issued because some land-
buds who have been desigiuited as trustees to receive
and distribute payments apparently have gained tlie
impression that they may retain the tenants' share of
payments for application on debts owing U) them by
tenants. We want to correct that im])ression, as any
such action on their part would violate the terms of the
contract and th(» conditions ai' the trust. 'J'he failure
of a landlord acting as tnistee to disburse to any tenani
his respective share of payments, <*onstitutes grounds
for recision of the contract, in which case the producer
would be required to return to the Seeretary ot' Agri
culture any payments made to him, as well as paying
the costs incident to the collection thereof."

Status of Tax Reduction Bill

The \'inson Subcommittee Report — recommending
a 40 per cent, horizontal iedn<'tion in Inteinal Revenue
tax lates on all tobacco jnoducts, including cigars —
having been approved by the H(M)se Ways and Means
Committees the committee has now formallv submitted
its rejKjrt to the House, recommending the j)assage of

i6

the Vinson Hill (II. R. 9441) providing for the 40 per
cent, horizinital reduction.

Xo <h'finite time has as yet been set for the lonsid-
eration of this measure by the House, but steps to mov**
this bill may be taken at any time.

Thg Tobacco World

News from Congress

(Continued from Page 15)

Hnactment of the legislation followed by the an-
iionncement by Jesse II. .Jones, chairman of the R. F.
( ., that the President ai)i)roved the ])lan and was par-
ticularly desiious that "these smaller and medium
>ized industries be given a full chance to survive on
ecjual teiins with the larger industries."

''There is undoubtedly a need of credit for small
and medium sized industries,*' Chairman Jones ))oinled
niit, "and while some of the loans will carry more than
the usual ciedit risk, unless the demand is met our
relief problems will continue to multii)ly. A (h)llar
loaned is cei'taiidy better than one given in relief, and
viich loans can be made with little ultimate loss."

CIGARETTES COOL FINGER-TIPS

MOKIXd one cigaiette will cool tiu" tempera-
ture of the skin on your finger-tii)s by ten to
twelve degrees. This and other similar cool-
ings, due to smoking, are explained in one of
the scientific exhibits set up for the eighty-fifth annual
meeting of the American .\Iedical Association for five
(lays, beginning June lllh.

The cigarette exhibit shows the effects of tobacco
smoking on the outer layers of the blood ciiculation,
particularly those lying close to the skin. The tests
were made by Hving S. Wright, A. Wilbur Duree,
Jose])h Kovacs, Dean MotTat and Josej)h Wiener, of the
New York Post-CJraduate .Medical School and hospital
of the Cohnnbia University,

It made no difference whether the cigarettes con-
tained denicotinized tobacco. The effect was the same.
But fake cigarettes nuule of ground filter pajK-r failed
to produce the cooling.

A young nuin smokinof a **standard brand" ciga-
rette started with ;i finger-tip temperature of 92. This
temperature dropped ten degrees in fifteen minutes
while he was smoking one cigarette. After he stopped,
the skin dropped a further two degrees in three min-
utes. Seven minutes later it was again at 92.

A denicotinized cigarette produced a similar drop
and rise, although sliglitly slower. A mentholated cig-
aiette caused a slower fall in finger-tii) temperature,
l>nt the cooling effect was still strong, at HO degrees, for
a lull hour and forty minutes.

Physicians stated that during smoking the flow of
l>lood in the capillaries is fre<|uently slowed (lown, or
even stopped. This accounts for the skin cooling.

GROWERS' AGREEMENT APPROVED

ROWHRS of cigar-leaf tobacco of the stemming
gratles are assured of prices ap])roxinuiteIy 100
per cent, higher than prevailed last season for
1 S,r)0O,( K M I pounds of their holdings of* tobacco
bv a marketing agreement which has been signed by
.\Vting Secretary of .\griculture R. (i. Tugwell. Bh)ch
lirothers Tobacco Company, Liggett & Myers Tofmcco
Company, W Lorillard Company, and Scotten-Dillon
Companv are signatory to the agreenjent, which be-
cniiK.s effective as of I)ecend)er 1, VXV^. These com-
panies nuinufacture sr> to !Ml per cent, of the scrap
eliewing tobacco, for which the stennning grades of lo-
l)acco covered by the agreement are utilized. The

{Cnntinmd <ni Scxt Page)

June 75, 79.?/

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TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

JESSE A. RLOCH. WlieeUnR. W. Va President

JLLIIS 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. Hl'MMELL. New York. N. Y Vice-President

n. 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

RETAIL TOBACCO DEALERS OF AMERICA, INC

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y President

CLIFFORD N. DAWSON. Buffalo, N. Y Executive Vice President

JAMES C. THOMPSON. Chicago. Ill Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS, N"ew York City President

MILTON RANCK. Lancaster, Pa First Vice-President

I). EMIL KLEIN. New York City Second Vice-President

LEE SAMUELS. New York City Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave.. Newark, N. J President

ALBERT FREEMAN. New York. N. Y First Vice-President

IRVEN M. MOSS, Trenton, N. J Second Vice-President

A. STERNBERG. Newark. N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITON E President

SAMUEL MAGID. 2001 N. Mervine St., Philadelphia. Pa Secretary

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E ASnURY DAVIS, Baltimore. Md President

JOSEPH KOLODNY, 200 Fifth Ave., New York. N. Y Secretary

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN President

HERMAN H. YAFFE, 301 Fox Building, Philadelphia, Pa SecreUry

17

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FUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTUN. AIOMATIZEI. BOX FLAVOBS. PASTE SWEETENEIS

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Olassified Column

The rate fot this column is three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c.) payable
strictly in advance.

uirririr«flrfSflrrixirritir7iflfr*>citi«v^^^^

POSITION WANTED

CIGAR SALESMAN COVERING E.VSTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
demonstrate actual worth and ability. References the highest.
Address, F. H. Riordan. 5915 Webster Street, Philadelphia, Pa.

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fhu Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, NEw^Yo^"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 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.

NEW REGISTRATIONS

3 BAGGER: — 46,334. For all tobacco products. Harvev's. Syracuse
X. v.. Mav 28. 1934. • » ^ .

THINETTE:— 46,338. I'or cigarettes. Humath Co., Ii«^ N«w

\ ork, N. Y., June 7, 19J4.

RENEWAL REGISTRATION
GOLD COAST:— 46,337. Vor cigars. Registered Mav 31, 1934, by
Consolidated Litho. Corp., Brooklyn, N. Y. (Originally registered
on .August 9, 1902. by .Schmidt & Co., New York, N. Y., predeces-
sors tu Consolidated Litho. Corp.)

TRANSFERRED REGISTRATIONS

JUDGE GEORGE H. DURAND:— 25,787 (Tobacco Leaf). For
clgar^, clurotUs and cigarettes. Registered July 19, 1903, by Abe
Davis, I'lint, Mich., and renewed on May 25, 1925 (Tobacco Mer-
chants' Association Certificate \o. 44,241). Transferred to Havana-
Detroit Cigar Mfg. Co., Detroit, Mich., June 8. 1934.

CRESTWOOD:— 28,147 (Trade-Mark Record). For cigars, ciga-
rettes and tobacco. Registered March 17, 1903, by Heywood-
Strasser Litho. Co., New York, N. Y. Transferred to Wni. R.
Wollaston. Dayton, Ohio, and re-transferred to Consolidated Litho
Corp., Brt)oklyn, N. Y., May 28, 1934.

O'PAT:— 26,669 (United States Tobacco Journal). For cigars, che-
roots and cigarettes. Registered February 25, 1903, by Wni. Steiner
.Sons & Co., New York, N. Y. Through mesne transfers acquired
by Consolidated Litho. Corp., Brooklyn, N. Y.. and re-transferred
to the Brown Cigar Co., Quincy, Fla., May 29, 1934.

{Cuvthmed From Preceding Page)
ai»:rceinont applies to tobacco produced in New York,
l\'nii.sylvaiiia, Ohio, Indiana, Minnesota, Wisconsin,
( onnecticut, Ma.ssaehusett.s, New Hampshire and Ver-
mont.

The difTerential of one-half cent per pound in the
price of tobacco i)urchased from growers as compared
with that purchased through cooperatives represents
the saving to })uyers in dealing with cooperatives. The
(litTerentials ba.sed on age and method of storage are
to compensate for loss in weight through storage.

Inder the agreement the contracting firms must
purchase the following amounts before June 30: Blocli
Brothers, three million pounds; Liggett & Myers, four
million pounds; P. Lorillard Company, seven and a half
million pounds; and Scotten-Dillon Company, four niii-
loan pounds. According to Tobacco Section officials,
the aggregate amount called for in the agreement is
somewhat larger than the 1933 production of these
grades, and should act to bring about a larger volume
nf purchases than would have been possible without the
agreement.

Deficiency payments of two cents per pound in the
( ase of purchases below the specified amount are called
for under the agreement. Buyers must purchase in the
usual manner, and refrain from disproportionate buy-
iugs of the highest grades.

i^&i

JULY 1, 1934

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la., Pa.
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION ^5""^"^,?,

Chicago, III.
Lima Ohio Detroit, Mich.

A NatioixWide Service Wheeling, W. Va.

m II n

n

m^m

f^UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA,

After
jiothtng

all
satisfies lihe^

a good cigar

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

tmcmber that Rcgjrdlcu of Pri€«

THE BEST CIGARS

AKZ FACKID IM

WOODEN BOXES

.

THE TOBACCO WORLD

Vol. 54

JULY 1. 1934

No. 13

Provisions of Wholesale Code

Not Contained in Manufacturers' Code

EING, in the main, identical in phraseolojify
with the Code of the Oi<!:ar Manufacturint!: In-
dustry, as |3rinted in full in the May 1st issue
of The Tobacco Wokld, the Wholesale Code is
not reprinted at this time. The foUowinii^ paras^raphs,
however, are rein-odueed from the Wholesale Code ])e-
cause they do not appear in the Manufacturers' Code:

Article II— Definitions

Section 4. The term "tohaceo products" includes,
without limitation, all cigars, sto«;ies, cheroots, little
cigars, cigarettes, smoking tobacco, chewing tobacco
and snuff.

Section 5. The term *' wholesale tobacco trade"
means and includes all selling and distributing of to-
bacco products at wholesale.

Section 6. The terms * 'wholesale tobacco dis-
tributor," "wholesale distributor" and "member of
the trade" mean any person engaged wholly or par-
tially either as an employer or for his own account, in
the wholesale tobacco trade.

Section 7. The term "wholesale tobacco estab-
lishment" or "establishment" means any ])lace of
wholesale business at which more than one-lialf the
dollar volume of the sales made consists of tobacco
products, or at which the principal line of business is
tUe sale of tol)acco products.

Section K. The terms "tobacco retailor" anrl "re-
taller" mean any ])erson engaged wholly or partially
for his own account, in the selling of tobacco jiroducts
directly to the consumer and not for ])urposes of resale
in any form.

Section It). The term "tobacco manufacturer"
means and includes any person engaged in the manu-
facture of cigarettes, smoking tobacco, snuff or tobacco
products other than cigars, and the distributinn there-
of, exclusive, however, of distribution by wliolesale
distributors or retailers.

Article VI — Prices

i (

As to cigars, with respect to which the provisions
of Part I or Schedule 1 shall not at the time hv oper-
ative or shall be stayed, and as to cigarettes, smoking
tobacco, chewing tobacco and snuff, the standards of
fair competition for the trade with reference t<' pricing
practices are declared to be as follows:

"Section 1 (^) : Wilfully destructive price cutting
is an unfair method of competition and is forbidden.
Any member of the trade or of nny otluT trade or
industry or the customers of either may, at any time,
complain to the Code Authority that any actual price

constitutes unfair competition as destructive price
cutting, imperilling small enterprises or tending
toward monopoly or the impairment of code wages or
working conditions. The Code Authority shall, within
five days, afford an opportunity to the member making
such price to answer such complaint and shall, within
fourteen days, make a ruling or adjustment thereon.
If such ruling is not concurred in by either party to
the complaint, all papers shall be referred to the Re-
search and Planning Division of NRA which shall
render a report and reconunendation thereon to the
Administrator.

"(6): When no declared emergency exists as to
such products or any specified part thereof, there is
to be no fixed minimum basis for prices.

"It is intended that sound cost estimating methods
should be used and that consideration should be given
to costs (including costs of w^holesale distribution) in
the determination of pricing policies.

"(c): When an emergency, by reason of unfair
competitive practices or other conditions, exists in the
trade as to such products or any specified part thereof,
sale below the stated minimum price of such products
or such specified part thereof, in violation of Section 2
hereof, is forbidden.

"Section 2. Emergency Provisions. — (a) : If the
Administrator, after investigation, shall at any time
find both (1) that an emergency has arisen within the
trade, adversely affecting small enterprises or wages
or labor conditions, or tending toward monopoly or
other acute conditions which tend to defeat the pur-
poses of the Act: (2) that the finding of a basis for
determining minimum prices for such products or any
specified part thereof is necessary for a limited period,
to correct the conditions constituting such emergency
and to effectuate the purposes of the Act, the Code
Authority may cause an impartial agency to investi-
gate costs (including the costs of wholesale distribu-
tion) and to recommend to the Administrator a basis
for determining minimum prices of the said products
or the said specified part thereof affected by the
emergency, and thereupon the Administrator may pro-
ceed to fix a basis for determining such minimum
prices.

"(6) : When the Administrator shall have fixed a
basis for determining mininmm ])rices for the said
products or said specified i)art thereof for a stated
period, which prices shall be reasonably calculated to
correct the conditions of such emergency and to
effectuate the purposes of the Act, he shall publish
the said basis. Thereafter, during such stated period,
no member of the trade shall sell such products at a

(Continued on Last Page)

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post Office, Philadelphia, Pa^ under the Act of March 3. 1879.

Goin' Places and Seein' Things

When You've Watched Them Make This Cigar, YouVe

Been Somewhere and Seen Something

By JOHN CLEARY

OF toll tliom yon want to see how good cigars
are inado — and thoy tako you to the boiler-
room in the sub-basement! It's one of those
torrid days in June, and as you mop your
forehead, you say to yourself: Well, I guess
I've let myself in for one of those *' complete"
tours of inspection. They're going to show me
everything in the building, whether it has anything
directly to do with cigar-making or not. And, priding
yourself on being something of a philosopher, you
shrug your shoulders, and think: I can't say I didn't
ask for it. Let them shoot the works !

Your guide, who is no salesman but knows his
cigars (as well as his tobacco and his building) and is
some shakes as a psychologist himself, has read your
unuttered thoughts, and you realize how close you came
to revealing your own sappiness when he says :

"We didn't bring you here first just to show you
these three huge oil-burning units, although w^e are
proud of them. Nor because it is convenient to start
from the bottom and work up. Not at all. If you want
to know all about the making of good cigars, you must
learn at the very beginning that, given good ripe to-
bacco and masterly skill in blending it, the most im-
portant single factor in cigar manufacture is the con-
stant, unvarying maintenance of the scientifically
correct temperature and humidity in all stages of the
process of preparing the tobacco for the smoker,*'

Paradoxically enough, you hadn't expected to hear
anything about the smoker at all on this trip through
a cigar factory. Here you are, hearing about him,
down in the bowels of the earth. And you keep hearing
about the ultimate smoker all along the line, until you
finish the tour on the roof, yes, literally on the roof,
where . . . but don't let's get ahead of ourselves.
We're still two floors below the street level.

Manuf acturijig the Weather

This temperature and humidity idea intrigues you.
You'll have more regard for your cigar now, you think,
since you realize that to manufacture it, the proper
weather had to be manufactured. The entire building
is insulated with a two-inch-thick cork lining. You'd
break your arm trying to open a window — every win-
dow in the building is stationary and double-sashed.
The purpose of all this is to maintain in every step of
the process through which the tobacco passes, the
proper atmosphere for that particular step, regardless
of the state of the weather outside, and regardless of
the atmosphere required for other steps in the process.

You notice that on this second official day of sum-
mer only one of the three oil burners is w^orking, and
your guide explains that is just enough to keep the
sweat rooms at the right heat, but, as the fellow says,
we '11 come to them later. And how !

Up a flight of stone steps you come to the base
ment, where is located the miraculous w^eather-making
machinery and equipment for the lower half of the
building. The entire unit is duplicated on the ninth
floor to take care of the upper half of the building.

You see what looks to your lay mind like an orderly
array of dynamos and registers and gauges and
gadgets, and you marvel how they can bring in the air
from the outside through ducts, wash it (in water, too —
none of your complexion creams for this air-washing
process) and then distribute it to the various parts
of the building at exactly the proper temperature and
with precisely the correct amount of humidity for each
spot. A gauge set at the unit provides for the building
generally, while others must be set at individual spots
for individual weather needs. For summer, naturally,
the apparatus was set largely for cooling and dehumid-
ifying, fulfilling the function of a refrigeration ma-
chine. It would have a capacity of 100 tons of ice
daily, if used for that purpose. No wonder you think
it's miraculous.

You enter the first floor from the enclosed truck
loading and unloading platform, just below the freight
train platform, which is on the second floor level, beinu
a spur of the elevated Reading Kailway tracks.

Conditioning the Ripe Tobacco

If you're lucky, you 11 see the cases of tobacco
sliding down the chute to the scales on the first floor,
where they are weighed and placed three and four high
on the floor by one of the two shifts at work in this
busy plant.

How this particular shipment of tobacco got here
is a story in itself. It is sufficient now to know that the
numagement didn't simply send out wires here, there
and everywhere, regardless, saying, **Ship us so many
pounds of tobacco at once." No, these people knew
this tobacco from its seedlet days. They select much
of the leaf personally, and always only those leaves
which grew on the middle of the plant, not the under-
ripe, bitter, youngest leaves from the top, nor the over-
ripe oldest "sand" leaves nearest the ground — only tin-
ripe leaves from the middle of the plant.

So this tobacco as it comes ofT the cars — the Su-
nuitra wrapper after a voyage from Amsterdam, the
Havana leaf from Cuba and the domestic from Con-
necticut and Pennsylvania — is not an unknown quan-
tity. They know it, and they know, too, that it is in the
proper condition to go through their processes of
manufacture. You wonder, therefore, at the meticulous
care used in these processes, but your wonder ceases
when you learn how delicate a growth the tobacco leaf
is. The prepared leaves, themselves, are exceedingly
hygroscopic, which is a high-hat way of saying tliat
they readily absorb and retain moisture, that they are

Th4 Tobacco World

highly sensitive to the minutest variation in the mois-
ture content of the surrounding air. (Now you begin
to get the importance of this '* manufactured weather"
business). Moisture affects the leaves both physically
and chemically. Leaves that are too dry, or brittle,
break and fly away as dust. Limp and weak leaves —
the too-moist ones — tear and stretch. When they are
too dry or too moist, they undergo detrimental chemi-
cal changes also. They lose flavor, aroma and smoking
([uality (here's Old Man Smoker himself entering the
picture again). It is too-dry or the too-moist leaf
which molds and decomposes. But you'll be wanting
to get back to that case of ripe tobacco which just came
(lowTi the chute and off the scales — 350 pounds it was.

These hands of tobacco (and a ''hand," if you
nmst have every term defined, is a bundle of twenty-
five to forty leaves tied together at one end) are dipped
in water and allowed to stand on a board for a suffi-
cient length of time to become pliable before going back
into their original case for curing in the sweatroom.
This preliminary, or conditioning, operation is called

' ' casing. ' '

<<

It's Not the Heat; It's the

ft

There are five double-decked sweatrooms. Each
has a capacity of 120 cases. And each of them is filled
the afternoon you are there. The temperature is rather
])leasant on this floor, so, expecting some rise in tem-
perature in a place called a sweatroom, and preparing
yourself for it, you follow your guide as he nonchal-
antly strolls into one of the five. Whew! It's hot as
the hinges of the bad place, and you're glad you let
the door ajar, as you duck out, anything but nonchal-
antly. Right here, you think, is where they originated
that wisecrack: **It's not the heat; it's the humidity."
The leaves are left in the sweatrooms the proper length
of time to ferment, a period w^iich varies according to
the nature of the leaf and the type of tobacco. The
cases are inspected daily. You leave that floor with
the thought that, while in social intercourse, "sweat"
may be an inelegant word, the guy who christened those
rooms certainly knew his Anglo-Saxon.

What a contrast when you enter the first room on
the floor above, where the wraj)per leaves are condi-
tioned by the company's own patented humidifying de-
vice. They are put in dry and come out pliable, retain-
ing their original color after their air bath in that
pleasant, breezy room.

A Colorful, Busy Scene

It is a busy colorful scene that greets your eyes in
the stripping room, which occupies all of this commo-
<lious second floor, with the exception of the space de-
voted to the wrapper-conditioning room and the stor-
age room for stripped wrappers. Four hundred young
women, each attired in a blue smock with white collar
and cufTs, a blue cap trimmed with white, and a blue
apron, also with white trim, are engaged, each at her
own machine, in removing the heavy stem from the
center of each leaf. (Your guide tells you the girls'
neat uniforms are of Indian Ilead material, and, being
no expert in dress fabrics, you take his word for that,
considering it an act of graciousness that the manu-
facturer should pay this honor to the vanished race of
• igar store Indians.)

As the machine clips the center stem from each
leaf, each half-leaf is allowed to revolve on a roller

J^h I, 1934

until a sufficient number have been stripped, when the
operator removes them, and books them into pads, al-
ways making separate piles of the right and left halves.
Incidentally, the leaves have been inspected before
being turned over to the operator for stripping, and
they are inspected after stripping. You notice
this check and double-check system throughout the
plant. On some operations there is a triple check.
Another thing you notice here and everywhere else
throughout the building is the absence of noise or, in
fact, any audible evidence of the big production being
turned out. Your guide never has to shout to be heard
over the din of machinery or chatter. You carry on
your conversations in an ordinary tone of voice.

Wrappers are stripped at one end of the floor,
binders in the center and filler tobacco at the other end.
Beside the center section there is a storage room for
the binder leaves, equipped with special humidifying
apparatus and appealing to you as a perfect place to
spend a hot afternoon. You notice that there is no
noisy trucking or back-tracking. The progressive con-
veyor system is used throughout, the receptacles going
out full and coming back empty, with automatic pre-
cision.

On the way up to the third floor, you pass, on a
mezzanine, the locker rooms and cafeteria for the sec-
ond-floor w^orkers. To the highly important function
of drying the filler leaves, or rather half -leaves, is de-
voted practically the entire third floor. And it's here
you get one of the biggest surprises of the trip.

Heaven to Hades in 100 Yds.

The tobacco, hung on racks, enters one end of the
drying room, where it is exceptionally hot, and then
travels, by gradual stages, through gradually lessening
temperatures, to the other end, where it is pleasantly
cool. Your guide has explained this to you before you
enter from the cool end, and although there are no
partitions in the room, you feel, with every few feet
you walk, a perceptible rise in the temperature, until
it gets so damned hot that vou run the last several feet
to the heavy exit door, w^ere you fumble with the knob
when your guide calmly completes his walk and quietly
opens the door for you. You have walked from heaven
to hell in less than a hundred yards, but somehow or
other, you feel better than when you entered the room.
You are about to say something about this feeling, when
your guide, again sensing your thought, remarks:
**That sure does clear your head, doesn't it?" That
was it. Your head felt clearer than it had at any time
since vou were a bo v. The excess moisture extracted
from the tobacco by this drying process seems to be
just the thing to make your head clear as a bell.

A locker room for the girls working on the fifth
and sixth floors and the main dining room, with a
kitchen equipped to feed an army, complete the layout
of the third floor.

The fourth floor is given over entirely to the stor-
age of tobacco in open bins, completing the process
which puts it into the proper condition for being fabri-
cated into the complete cigar for the smoker. You see
the Havana leaf, which comes in bales instead of cases,
at one end the binder and filler occupying the remain-
der of the huge bins on the floor. Your guide esti-
mated there were about fifty carloads of tobacco in the
storage bins when you passed through.

And now, on the two floors above, you come to
what you thought they were going to show^ you first, the

tobacco beinj? made into dinars. Your eye is first
caui>lit bv the ariiiv of uiuforinod <»irls as you step olT
the elevator at the lit'th floor. Tlie color scheme here
is gray and white, for the smocks, caps and aprons of
the operators, and you assume that, with equal a]jpro-
priateness, their material is also Indian Head. There
are four iiirls in attendance on each machine. And
what machines !

They don't call them human machines. They call
them superhuman machines. And when you see them
operate, you think that descriptive title is no exagger
at ion.

The first girl feeds an amount of filler into a tray.
A part of the machine reaches out and takes exactly
enough of it to make one cigar, cuts off l)oth ends to
make it the proper length, shapes it and slides it under
a sort of rubber apron. In the meantime, the second
girl has s])read out a single binder half-leaf on a per-
forated aluminum dingus, which by some sort of suction
hocus-pocus, is transferred to that same apron ,inst in
time to meet the rolled filler as it arrives there. The
machine wrai^s the filler securely in the binder leaf,
and then transports the now nearly completed cigar to
be enveloped in the wrapper, which has been sjiread
over another perforated aluminum dingus by the third
girl, and carried thence by another ]iresto-changeo suc-
tion operation. The final touches, rounding the ends
and so on, are performed by the fourth girl, who re-
ceives each cigar from the machine and inspects it be-
fore she places it on the pile, to be conveyed to the
]iacking room, which, you think, is on the floor above,
since all the progress has been ui^ward, from one floor
to another. Well, you're wrong again.

The Right and Left of It

But before you learn how and why you're wrong,
you pay a visit to the antiseptically clean and well-
appointed dispensary, with its ])rivate sleeping cham-
bers for the sick or injured and everything else re-
quired for the emergency ward of a hos])ital. Doctor
and nurses are always in attendance. A])])licants for
employment must pass a i)hysical examination before
they are accepted, and they undergo ])eriodic examina-
tions thereafter.

And now, on that vast expanse of sixth floor, where
you ex])ected to see the packing department, you gaze
Instead upon a replica of the fifth floor, another army
of gray-clad operators manning cigarmaking machines,
wnth conveyors feeding tobacco at one end and other
conveyors carrying away finished cigars at the other
end. It is not an exact replica, however. Here the
machines are precisely the reverse of those on the floor
below. The answer is'that the fifth floor nuikes **riirht"
cigars and the sixth floor makes *Meft" cigars. You
remember, then, how the strip]^ers kept the two halves
of the leaves se])arated when booking them into ])ads,
the right halves in one pile, the left halves in another.
If you gave the matter any thought at all, you ])robably
imagined in your ignorance tliat, in making the cigars
the right half of the leaf was fed into the machine one
side up, and the left half of the leaf the other side up.
On a little reflection, you would have realized that only
the smooth, imveined to]) side of the leaf is used for the
outside of the wra])i)er, and you feel ashamed of your-
self for not having adverted to that. (You don't feel
so peeved at yourself, however, when you discover* that
there's many a man engaged in selling cigars for vears
who is also unaware of this fundamental fact of cigar-
making.)

Anyway, that 's why there are right and left cigar-
making machines, and why there are right and left
cigars, and why thei'e are two conveyors, one from the
fifth floor and one from the sixth, leading to the packing
de])artment on the eighth floor.

Before making vour wav there vou note the men's
locker room above the disj)ensary, and you make a tour
of the seventh floor. In the front is the attractive big
rece])tion foyer, flanked by the private and general
ofiices of the conq)any. In the rear is the machine shop
for the maintenance of the building's machinery and
equipment. And in the center of this floor, you get
ahead of the ])rogressive movement through the ])laiit
for the first and only time. Here all box goods, packed
on the floor above, are stami)ed, ])acked into cartons,
and the cartons metal-stitched and chuted below to the
train ])latfoiin for shipment or to the truck ])latform
for haulage.

Inspect ! Inspect ! ! Inspect ! ! !

Following the loose cigars on the conveyors to the
eighth floor, you see them delivered to the keen-eyed
young women who sort them according to shading and
color under s])ecial lights that never vary, and press
them in "shells." Kach of the cigars in each shell then
goes through the hands of an inspector, who re])laces
them and ])uts them on the conveyor, to be borne to the
machines for cello])haning and banding. One machine
])erforms both of these operations, and the girl attend-
ing it packs the cigars in a box, drives a nail in the lid
and ])uts it on the conveyor to journey to the final in-
s]>ector, who j)ulls the nail out of the lid and gives the
])ackau:e the ultimate O. K. foi shade, color and so on.
The box then travels down the chute to start the last
stage of its trij) towards Old Man (or Young Man)
Smoker himself, whose s])irit seems to have hovered
over every steji in the ])iocess of its manufacture.

But your tri]) is not entirely ended yet. This is the
topmost main floor of the building, yet there is a two-
story structure above it. On the first of these floors —
the ninth, if you ]>lease — is a battery of ])aste-mixing
machines to serve the ])acking department mostly, and,
as you learneil in the beginning, a duplicate of the
weather-manufacturing machinery in the basement.
There is also the machinery anil (Mpiijunent for the
suction system which ]»erforms those hocus-])ocus,
presto-changeo tricks on the individual cigarmaking
machines on the fifth and sixth floors.

And on the tenth floor of this su]>erstructure — lit-
erally above the roof — there are the huge tanks fcjr the
building's water sui>ply and a "sjjray ik)o1" which is
used for the cooling of the condenser water used in the
building's refrigerating equi])ment.

Boy, You've Seen Something!

A dramatic ending ten stories above the ground ol
a |)acked\vith-drama toui- which had its !)eginning two
>tori(>s Ih'Iow the ground!

And when you shake hands and thank your guide,
vou know vou've gone i»laces and seen things; you
knf)\v you've been somewheie and seen something.

You've been through the largest cigar factory in
the world, and you've watched them nuiking the largest-
selling cigar in the world.

You've been throuuh one of \hv plants of Hayuk
riuars. Inc.— the one at Xinth and Columbia Avenue,
in Philadelphia — and vou've seen them making Bayuk
I'hillies.

The Tobacco World

President and Johnson Approve Codes

RESIDENT ROOSEVELT approved the codes
for the cigar manufacturing industry and the
retail tobacco trade on June 19th, and National
Recovery Administrator Johnson approved the
code for the wholesale tobacco trade on June 9th. All
three codes contain a ** cigar merchandising plan"
whereby the manufacturer establishes the retail price
of his product and which regulates the trade discounts
which may be allowed at different stages of cigar dis-
tribution.

At the request of the trades, the order approving
the wholesale and retail tobacco codes substitutes the
Administration's recently announced price main-
tenance policy for the codes' proposals. The propo-
nents were entirely willing to accept the new policy,
and asked that the change be made in the order of ap-
proval rather than delay the code by the mechanical
work involved in retyping.

Acting promptly under the terms of the order, the
code authority has already petitioner the Administra-
tion to declare an emergency condition and to establish
minimum prices. The request for remedial action is
now being studied and will be submitted for a decision
hy the Administrator.

The waiting period in the open price provision is
stayed in all three codes by the order approving them.
The cigar merchandising plan's provisions for filing
prices and discounts are stayed until ** satisfactory ar-
rangements . . . are made for confidential treatment
and for simultaneous distribution . . . .'*

The cigar manufacturing industry code establishes
a basic maximum work-week of forty hours, at mini-
nmm wages ranging from 25 cents to 34 cents an hour.
It is provided that the labor provisions will be reviewed
within nine months.

There are about 50,000 workers in the industry, of
which over 75 per cent, are women. Total payrolls are
nearly $35,000,000.

The code authority is to consist of thirteen mem-
bers. Three representatives of machine cigar manu-
facturers and three of hand cigar manufacturers are
to be selected by the Associated Cigar Manufacturers
jind Leaf Tobacco Dealers; one by the labor advisory
board and one by the consumers advisory board,
N. R. A.; non-members of the proponent association
will appoint one representative of each branch of the
industry; and within fifteen days after the effective
date those members shall devise a plan for selection of
the others.

The code for the retail tobacco trade establishes
a sliding scale of maxinuim hours permitted employees,
depending on the number of hours of store operations.
This parallels the code for the retail trade and the
retail drug trade.

Minimum wages range from $10 a week to $17.50,
depending on the population of the city and the num-
ber of hours worked. The minimum rates are about
15 per cent, higher than the rates now prevailing in
other retail codes.

The minimum wage rates established are expected
to result in an increase of 10 per cent, in the total pay-
rolls of the trade.

Administration is entrusted to a code authority of
ten members. Two of them are to represent the retail
urocery trade and the retail drug trade, designated by
the code authorities for those trades. One is to be

Juiy I, 1934

appointed by the N. R. A. consumers advisory board.
Six members are to be chosen by the Retail Tobacco
Dealers of America, Inc. (of whom one is to represent
a national chain) ; the other member is to be chosen
by non-members of the proponent organization.

The code for the wholesale tobacco trade, approved
Saturday, June 9, by General Johnson and effective im-
mediately on approval, establishes a maximum forty-
hour work week with permission to work up to forty-
eight hours during two weeks of the year, and minimum
wages of $14 to $16 a week, depending on the popula-
tion of the city, with a $1 differential in the South.

There are about 2000 wholesale tobacco establish-
ments in the country, employing 16,000 people. The
average capital investment is $100,000 to $200,000 per
establishment, and total business amounts to over a
billion dollars a year. In 1929 census figures a net
profit of 1.4 per cent, is shown, declining to 0.3 per cent,
in 1932 ; however, the trade reports that practically all
wholesale tobacconists have suffered losses each year
since 1929.

The code is expected to result in wage increases
of about 10 per cent., and an increase of about the same
percentage in the number employed.

In approving the code General Johnson stayed the
provisions of the cigar merchandising plan, incorpo-
rated in this code, until the two presidential codes be-
come effective. He also stayed, until further order, the
waiting period of the open price association.

Labor provisions of the wholesale tobacco code
became effective June 25th.

In his letter to the President announcing approval
of the code Administrator Johnson said that since the
hearing N. R. A. representatives "have made certain
revisions in the code, as is customary after public hear-
ing. These changes are not in conflict with the testi-
mony in the record of the public hearing and have been
assented to by the industry.''

A code authority of ten persons will administer the
wholesale tobacco trade code. Eight of them are to be
designated by the National Association of Tobacco Dis-
tributors, Inc., one by the Consumers Advisory Board,
N. R. A., and one by members of the trade who are not
members of the proponent association. In addition,
the Administrator may name as many of three others
to represent him.

The cigar merchandising plan, carried identically
in all three codes, regulates sales of cigars through all
stages from manufacture to retail sale.

The first section deals with sales by cigar manufac-
turers. Such manufacturers are required to file with
the Council the minimum sales price at which such
cigar is intended to be sold at retail. That price is to
be used in computing discounts. Each container must
bear the retail price prominently marked.

Sales to retailers other than chain stores or drop
shipments are to be at a discount not over 28 per cent.
Accredited jobbers get an additional discount of not
more than 14 per cent., service jobbers get not more
than two-thirds as much extra discount if there is an
acccedited jobber in the territorj^ otherwise not more
than 10 per cent. Drop shipments to retailers are
permitted, with the permission of the accredited job-
ber, if any, in quantities of not less than 2000 Class A
or B cigars or 1000 other classes, at an additional dis-
count of 5 per cent. Chain stores may receive the same

discounts as accredited jobbers. A cash discount of
2 per cent, is permitted in addition to the other dis-
counts.

These discounts do not apply to manufacturers
selling exclusively to the consumer, but other manufac-
turers are bound by the terms of the plan affecting
retailers when they sell to the consumer at retail.
**Free deals" by manufacturers are prohibited.

Sales by jobbers and subjobbers are similarly
regulated. They, too, nmst record their terms and
discounts with the Council. Those discounts must not
amount to more than the merchant receives on the
goods. Jobbers and subjobbers are bound by retail
terms when selling to the consumer.

Retailers must sell cigars at not less than the
manufacturer's indicated price. Sales in lots of not
less than ten (if the cigar sells for more than 5 cents)
may be allowed 5 per cent, discount ; boxes of twenty-
five or more may be sold at 8 per cent, off unless the
manufacturer has set a box price. The retailer may
not give more than one pad of matches per unit sold,
not over five pads per box of twenty-five, nor over ten
pads per box of fifty.

State taxes levied on tobacco products must bo
added to the minimum price. Legitimate clearances of
distress or damaged merchandise may be made at prices
below the established mininmm under certain condi-
tions.

All discounts under the plan are to be computed
separately and consecutively.

EXECUTIVE ORDER
CODE OF FAIR COMPETITION

for the
CIGAR MANUFACTURING INDUSTRY

An application having been duly made, pursuant
to and in full compliance with the provisions of Title I
of the National Industrial Recovery Act, approved
June 16, 1933, for my approval of a Code of Fair Com-
petition for the Cigar Manufacturing Industry, and
hearings having been held thereon and the Administra-
tor having rendered his report containing an analysis
of the said Code of Fair Competition together with his
recommendations and findings with respect thereto,
and the Administrator having found that the said Code
of Fair Competition comi)lies in all respects with the
pertinent provisions of Title I of said Act and that the
requirements of clauses (1) and (2) of subsection (a)
of Section 3 of the said Act have been met :

Now, Therefore, I, Franklin D. Roosevelt, Presi-
dent of the United States, pursuant to the authority
vested in me by Title I of the National Industrial Re-
covery Act, approved June 16, 1933, and otherwise do
adopt and apy:)rove the report, recommendations, and
findings of the Administrator and do order that the
said Code of Fair Competition be and it is hereby ap-
proved, and shall become eflPective on the date of this
Order; subject, however, to the following conditions:

1. That the provisions of Article VI and of Sched-
ule I — the Cigar Merchandising Plan — be stayed
and shall not become effective until Monday,
June 25, 1934.

2. That the waiting periods of five and three days
contained in Article VI, Section I. and Schedule
I, Part A, Section 1, and in Schedule I, Part B,
Sections 1 and 2, respectively, be stayed and

shall not become effective, notwithstanding said
cigar merchandising plan becoming effective,
until the further order of the Administrator.

3. That all provisions for the filing of prices and
discounts in said cigar merchandising plan be
staved until arrangements satisfactorv to the
Administrator, are made for confidential treat-
ment and for sinmltaneous distribution thereof
to all members of the industry and customers
willing to pay the cost thereof.

4. That the provisions of Articles III and IV shall
be and the same hereby are stayed until, and
shall become effective on, ^londav, June 2.">,
1934.

(Signed) Franklin D. Roosevelt.
Approval Recommended :
Hugh S. Johnson,

Administrator,
The White House,
June 19, 1934.

TRADE LEADERS ELATED

Elation over the final approval of the Codes was
expressed by representatives of the manufacturers,
the wholesalers and the retailers, as follows:

Harvey L. Hirst, for the Manufacturers: With
the signing of the Cigar Manufacturers Code, a
weapon is entrusted to us with which can be corrected
many existing evils in the industry.

If we use this weapon courageously, unselfishly
and efficiently, the cigar manufacturing industry will
be materially benefited and in a large measure com-
pensated for obligations assumed in hours and wages.

By every rule of common sense cigar manufac-
turers should lend 100 per cent, support to this Code.
Aside from the benefits to his industry, his own selfish
interests demand just this.

Joseph Kolodny, for the Wholesalers: As I have
repeatedly stated, the Code will cure perhaps 7 per
cent, of our troubles, leaving 93 per cent, to be cured
by our individual actions. It will depend upon us
whether it is successful or not.

I again urge our members and the trade in gen-
eral not to look to the Code to do it all. The Code, of
itself, is just a written document. True, it outlines a
highly ethical method of doing business, but it must
be put into effect. It nmst be administered by human
hands and human minds. They will recjuire our abso-
lute lovaltv and co-oi)eration if thev are to succeed.

The best thing about the Code is that it presup-
poses co-operation among three branches that hitherto
have been, if not inimical, at least inharmonious.

William A. Hollingsworth, for the Retailers: I
am naturally very hai)i)y that the Code has been
signed. It will, I am sure, prove of enormous benefit
to not only the retail cigar dealers but to the manu-
facturers and jobbers as well.

From my observation, drawn from many years*
experience in the business and from close association
during the jmst year with many of the leading mem-
bers of the retail cigar industry, I am sure that our
trade will play the game in a fair and square manner.

To those members of the industry who have fought
shoulder to shoulder with us during the past thirteen
months I extend congratulations and the thanks of
the retail cigar dealers of the country. It has been a
hard fight but it will be worth it.

The Tobacco World

ENJOY THIS WAY
OF INCREASING YOUR ENERGY

With the pleasure of Camel's distinctive flavor
comes an added benefit — an actual increase in
your flow of natural energy. That exhausted,
"dragged-out'* feeling slips away.. .your "pep"

Smoke a Camel — comes flooding back.

, . , This discovery, confirmed by a famous New

and nonce its York research laboratory, means that by smok-

"enerCfizinCf effect" '"^ Camels it is possible to restore the flow of
^ your natural energy — quickly — delightfully —

and without jangling your nerves.

For no matter how often you choose to "get
a lift with a Camel," dmeVs finer, MORE EX-
PENSIVE TOBACCOS never get on your nerves/

"Cam*!* giT« m«
• rafarMhiag lih'
in •B«rgy wh«n
I f««l tirsd ool.
And iImj don'l
intariar* with ay
wMtr—."

HELENE
MADISON

Olympio and
World'! Cham,
pien Swioun*!

CAMELS

Costlier

Tobaccos
never get on

your Nerves

Camals arc mad* from fiaor, MOIE EXPENSIVE
TOBACCOS — Tut kiah and Domostio — than any
•thor popular brand.

-^Si^

S^

44

Get

'^^.

with a Cam

el!

9*

^/

CopTrtslit. 1934, B. J. Bcrnolds TobM(» Company

J»h J. 1934

Letter of Code Approval

Sent to The President by General Johnson

PUBLIC Hearing- on the Code of Fair Com-
petition for the AVliolesale and Retail Tobacco
Distributing Industry, submitted by the Na-
tional Association of Tobacco Distributors,
Inc., and tlie Retail Tobacco Dealers of America, Inc.,
was held in Washington, D. C, on December 15 and
16, 1933, in accordance with the provisions of the
National Industrial Recovery Act, pursuant to Notice
of Hearing signed by the Secretary of Agriculture by
virtue of Executive Order of June 26, 1933. Under
Executive Order of January 8, 1934, jurisdiction over
this Code was transferred to the Administrator for
Industrial Recovery, whose representatives have made
certain revisions in the Code, as is customary after
Public Hearing. These changes are not in conflict
with the testimony in the record of the Public Hearing
and have been assented to bv the Industry.

The most important change was the division of
the Code into two codes, namely, tliis Code and the
Code of Fair Competition for the Retail Tobacco
Trade. This step was deemed advisable, inasmuch as
the two trades each with its different problems, should
be able to operate more satisfactorily under separate
Codes and different Code Authorities.

ECONOMIC EFFECTS OF THE CODE

The Wholesale Tobacco Trade covers the whole-
sale distribution of cigars, cigarettes, smoking tobacco,
chewing tobacco, snuff, and other tobacco products.

According to the 1929 Census of Distribution there
were approximately 2000 esta])lisliments in the United
States engaged in the distribution 'of tobacco products.
There were about 20,000 employees, approximately
eighty-four per cent. (84%) being men. In 1933 em-
ployment had declined about twenty per cent. (20%),
the employees numbering around 16,000.

It is estimated that the increase In employment
resulting from the operation of the Code will be about
ten per cent. (10%).

The foregoing Census shows that the anntial gross
volume of business had reached the high total of
$1,691,000,000. In 1932, due to the general economic
conditions, the estimated volume had shrunk thirty
per cent. (30%), or to $1,084,000,(K)0, and tlie net profit
margin had been reduced from one and four-tentlis
I»er cent. (1.4%) to three-tenths per cent. (0.3/f ), since
expenses could not be reduced in ])roportion to sales
volume. It is thought tliat the ligures for 1933 will
sliow still greater decline.

The Industry claims that tlie average capital in-
vestment of each establishment is between 5^100,000
and $200,000, and that, with rare exceptions, all to-
bacco wholesalers have been losing money for the past
four years.

The salary and wage bill of the Industry bulks
quite large in proportion to total expenses but shows
a relatively low percentage to net sales. It is difficult
to approximate the increase in payrolls directly at-
tributable to the Code, inasmuch as outside factors
enter into such a calculation. However, a cross sec-
tion of available data indicates an increase of ten per
cent. (10%). ^

to

The outstanding feature of the fair trade practice
])rovisions is the cigar merchandising plan, which is
also to be found in the Cigar Manufacturing, and Re-
tail Tobacco Codes.- It provides for the retail sale of
cigars at prices not less than those declared by the
manufacturer for each of his products, and further
prescribes maxinmm discounts allowable by manufac-
turers or wholesalers from those prices.

This plan was originated by the retail dealers, and
was proposed by them to the wholesalers and cigar
manufacturers. At the Public Hearing on this Code
it was supported by these three groups as well as by
representatives of tobacco growers. It now has the
approval of the Consumers Advisory Board, Indus-
trial Advisory Board, Labor Advisory Board, and
Legal Division.

It has long been a recognized custom of the in-
dustry for manufacturers to declare intended retail
l)rices, and internal revenue taxes on cigars are com-
jjuted on such a basis. The plan is based on this cus-
tom, but free competition between manufacturers, as
well as industry's recognition of the imperative need
for the retention of the five-cent cigar, should serve
to prevent increase in prices.

The sale of **long shot*' cigars, induced by ex-
cessive discounts to distributors has been an abuse of
consumers which will be remedied by the provisions
limiting the amount of such discounts. This plan will
l)ermit each manufacturer to make the best possible
cigar in each price class.

The use of cigars as **loss leaders'* by unrelated
buisness has been a severe handicap to those persons
whose major line of business is in tobacco and tobacco
products. The placing of the retail price on the con-
tainer of cigars should prevent passing down to the
wholesaler the burden caused by such practices, and
thus protect those who are dependent for their liveli-
hood on this trade.

Part II of Article VI of the Code provides for the
sale of tobacco products other than cigars carried by
the merchandising plan in Part I. The most im-
l)ortant feature of this Part II is the prohibition of
sales below the lowest reasonable cost to the whole-
saler. The Administrator may, in order to temporarily
restrict destructive price cutting, fix a basis for the
minimum wholesale price of tobacco products which
will be binding on all wholesale distributors. It will
be an unfair trade practice for any wholesaler to sell
or offer for sale any tobacco i)roducts below this mini-
nmui price.

HOURS AND WAGES

This Code provides a maxinmm work week of
forty (40) hours, with a limitation of eight (8) hours
in any twenty-four (24) hour period and six (6) davs
in any seven (7) day period, except that one one (i)
day in each seven (7) day period employees may be
permitted to work not in excess of ten (10) hours,
I)rovided however, that for a period not to exceed two
(2) weeks in the calendar year employees may be per-
niitted to work in excess of the maximum hours pro-
vided herein but not in excess of forty-eight (48) hours
per week or nine (9) hours per day. All such extra
hours shall be compensated for at the rate of time and
one-third.

The Tabaceo World

LUCKIES ARE ALL-WAYS KIND TO YOUR THROAT

it's toasted"

0/i^ the Center Leaves^these are the Mi/ Jest Leaves

^

73^ T!u(ili^lt&/t

:2L

•^"/y /. i9ii

II

In the event that the basic work week under the
Code for the Wholesale Food and Grocery Trade is
reduced to a maxinuim of less than forty (40) hours
but not less than thirty-six (36) hours per week, the
above provisions will be automatically amended so as
to substitute in the place of *' forty (40) hours'' such
shorter number of hours as shall be prescribed in such
Code for the Wholesale Food and Grocery Trade; and
thereafter any chani>es either by way of reduction (but
in no event to less than thirty-six (36) hours) or in-
crease in such maximum hours in said Food Code shall
result in a like increase or reduction of the said num-
ber of hours so substituted as aforesaid.

It is provided that no wholesale tobacco establish-
ment shall perform any sales or service operations on
Sunday.

Exemptions are made for executives, provided
they receive re^j^ularly not less than thirty-five dollars
($35.00) per week; and outside salesmen.

Outside delivery employees and billing and ship-
ping clerks and cashiers, working in conjunction wnth
the outside delivery employees in work of such nature
that any inequality of hours would interrupt the
routine of the outside delivery department, may be
permitted to work not in excess of forty-eight (48)
hours per week.

Watchmen may be permitted to work not in excess
of fifty-six (56) hours per week.

Employees are under a mininmm by population
for a forty (40) hour week, starting at sixteen dollars
($16.00) in cities of 500,000 population or over and
graded to fourteen dollars ($14.00) per week in towns
and cities up to 100,000 population, with the provision
that in the south employees nuiy be paid one dollar
($1.00) less than the mininmm rate provided above,
excepting that:

(a) No office employee shall be paid less than at
the rate of sixteen dollars ($16.00) per week, other
than office boys and messengers where a differential
of two dollars ($2.00) per week is permitted.

(b) Delivery helpers, not to exceed one for each
delivery vehicle used by the member, niay be paid at
the rate of eighty per cent. (80%) oi the minimum
wage provided herein.

(c) Apprentice employees may be paid at the rate
of one dollar ($1.00) less than the mininmm wage.

(d) No outside salesman, whether on a commis-
sion basis or otherwise, shall be paid less than at the
rate of twenty-five dollars ($25.(M)) per week of six
(6) consecutive days.

The weekly wages of all employees receiving more
than the minimum wages specified in this Article shall
not be reduced below the rates existing on June 1,
1933, notwithstanding anv reduction in the number ol
working hours of such employees.

FINDINGS

The Division Administrator in his final report to
me on said Code having found as herein set forth and
on the basis of all the proceedings in this matter:

*a find that:

**(a) Said Code is well designed to promote the
policies and purposes of Title I of the National In-
dustrial Recovery Act, including removal of obstruc-
tions to the free flow of interstate and foreign com-
merce which tend to diminish the amount thereof and
will provide for the general welfare by promoting the
organization of industry for the purpose of cooper-
ative action among trade groups, by inducing and
maintaining united action of labor and management

under adecpiate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by
promoting the fullest possible utilization of the pres-
ent productive capacity of industries, by avoiding un-
due restriction of production (except as may be teni-
))orarily re(iuired), by increasing the consumi)tion of
industrial and agricultural i)roducts through increas-
ing purchasing ])ower, by reducing and i-elieving un-
employment, by improving standards of labor, and In-
otherwise rehabilitating industry.

*^(b) Said industry normally employs not more
than 50,000 emi)loyees; and it is not classified by me
as a major industry.

'*(c) The Code as approved complies in all re-
spects with the pertinent provisions of said Title of
said Act, including without limitation Subsection (a)
of Section 3, Subsection (a) of Section 7, and Subsec-
tion (b) of Section 10 thereof; and that the applicant
association is an industrial association truly repre-
sentative of the aforesaid Industry; and that said as-
sociation imjmses no inequitable restrictions on admis-
sion to membershi]) therein.

**(d) The Code is not designed to and will not
permit monopolies or monopolistic practices.

**(e) The Code is not designed to and will not
eliminate or oppress small enterprises and will not
operate to discriminate against them.

*' (f) Those engaged in other steps of the economic
process have not been deprived of the right to be heard
prior to the api)roval of the Code."

For the above reasons this Code has been ap-
proved.

STATUS OF TOBACCO BILLS

HE Kerr Tobacco Control Bill has been passed
in the Senate with some amendments which
have been accepted by the House. Although
copies of the amended Bill as finally i)assed
are not yet available, according to our infornmtion,
the material amendments nuiv be stated as follows: As
regards crops subsequent to the year 11)34-35, the meas-
ure has been amended so that whenever the Secretary
determines that the persons who own, rent, share, etc.,
thrce-fuurtlus (instead of two-thirds) of the land custo-
marily engaged in the production of any particular
type of tobacco favor the levy of the tax thereon, he
shall proclaim such determination and tlie tax slial!
thereafter ajiply to tobacco of such type harvested dur-
ing the crop year next following. In this connection, it
is to be noted that the measure contains a specific pro-
vision that the tax *' shall not applv to anv tobacco har-
vested after April 30, 1936."

The specific exemption from tax "upon tobacco
grown by growers who produce less than 2(K)0 pounds
of tobacco per crop year" has been entirely eliminated.
The additional crop warrants which the Secretar\
may issue in any county to persons "engaged in the
production of tobacco of such type in such county as to
whom the Secretary determines that no equitable allot-
ment of tobacco acreage or production is possible under
tobacco-reduction contracts" has been increased from
5 j>er cent, to 0 per cent, of the total warrants issued to
contracting ])roducers in such county and a provistt
added that "warrants covering two-thirds of the
amount of tobacco allotted under this subsection in any
county shall be issued to growers whose allotmenl^
are 1500 pounds or less." The former provision in \h\>

(Continued on Page 14)

The Tobacco World

BAYUK BULLETIN

WEDOOUKMrr

VOLUME II.

JULY 1, 1934

NUMBER 10

PHULOFAX

(The Retailer^ s Friend)

SAYS

"NEVER LET 'EM SEE THE
BOTTOM OF THE BOX '

Veteran Salesman Warns Retailers

Within five squares of
each other are two cigar
dealers. Let's call one
Smith, the other, Brown.
"How did you make
out on Father's Day?"
Smith was asked. Smith
said "Oh, that's the bunk . . .folks
St buy cigars for Father's Day."
The same question was asked Brown
and Brown said, "I think I did fairly
well ... I sold 12 boxes of 5c cigars
jnd 4 boxes of 10c cigars . . . maybe
that's not so very good but a great
deal better than none at all ... I
believe if more dealers pulled together
on Father's Day, a lot of cigars could
be sold ... at any rate, I'm going
after Father's Day business harder
than ever next year. Many of my cus-
tomers Ko away over the 4th of July
. . . I'll not lose all their business
during their absence, 'cause already
I've sold D of them cigars for over the
4th." Incidentally, Brown says that
his cigar business is very good.

R. C. L., a dealer, writes in, "I be-
long to the C. B. A. and want to boost
cigars. I have a customer who smokes
a pipe but, at times, he tells me he has
a hankering for a cigar but doesn't
smoke so many, as he unconsciously
ckws his cigars, which he dislikes to
do. Now, here is the point. I sold
him a cigar holder ... I tell you
ci^ar sales can be boosted." Rightu-
are, Brother C. B. A.

Listen, ALL you folks in the cigar
industry . . . this column belongs to
you and to me and it can't be cen-
sored. Send in your pet peeve or your
best boost ! — o—

Vacation days are here,

Full of fun and cheer,

For a little while no work to fear;
Let's go and get a box of — cigars.

Contril)uted by E. C. MacAUister
. . . rotten poetry but good sense,
says we. — o^

Mr. Wm. D., of Bayonne. N. J.,
says he is a "newcomer in tnc cigar
business" and sends in to a certain
cigar manufacturer two suggestions
on how to increase cigar consumption.
Whether or not the expressed ideas
are practical is beside the point . . .
they do prove that he is THINKING
on how t'l increase cigar sales and I'll
bet 8oon( r or later he'll hit on some
plan that is workable.

Now is the best time of the year for
the sale of Five- Packs of cigars and
ji?osh, dare we remind all of us again)
lor the sale of cigars by the box.

The X Tob. Co., Baltimore. Md.,
certainly had a dandy Father's Day
window poster . . . nice work, E. F. R.

. " you know the A. B. C, you should
^ a C. B. A.

John T. Rynn, veteran sales-
man who now manages a factory
branch for a well known cigar
manufacturer, believes that it's
bad luck for the customer to see
the bottom of any cigar box
that's displayed in or on the case.

"In spite of cellophane wrap-
ping and everything else, the
average cigar smoker still shies
off from the last few cigars in
the box," says Mr. Rynn. "The
box may have been opened fresh
that morning, but your custom-
er will be firmly convinced that
those last few survivors are
hard and dry *left-overs.' He
may take a chance on buying
one or two of them, but he'll
hardly grab a fistful.

tti

On the other hand, a com-
pletely full box may raise a
doubt in the customer's mind as
to whether the cigars are as pop-
ular as they might be. At least
nobody else seems to have
bought from the box.

"So," advises Mr. Rynn, "keep
all the boxes in your case just
comfortably full. Take a box off
display before it reaches the last
row and remove a few cigars
from the fresh box before dis-
playing it."

The number of cigars in a box
seems a trivial sort of thing to
affect sales, but it's little differ-
ences like that which make the
big difference between plain
storekeeping and modern mer-
chandising.

NOTHING SUCCEEDS
UKE HORSE SENSE

Why will one dealer sell a hundred
of your cigars while another dealer
in the same neighborhood is sell-
ing twenty-five? A manufacturer
who makes a certain cigar which,
for the purpose of our sto^, we'll call
Usmokem, determined to nnd out.

He picked a list of ten retailers
who were — shall we say they were
"just retailers"? He made out an-
other list of ten who were known
to be progressive dealers. Then he
started an investigator out to call on
these two lists.

The investigator carried no formid-
able questionnaire, but merely some
shiny new twenty-five cent pieces. He
entered each shop just as anv ordi-
nary customer would, planked down
his quarter on the case and said:
"Two Usmokems."

In each of the ten shops designated
as "just retailers," he was handed his
two Usmokems and fifteen cents in
change. In eight out of the ten "pro-
gressive" stores, he was diplomatically
solicited to buy a five-pack. These
progressive dealers couldn't see any
reason why they should let fifteen
cents walk out of their stores to be
spent in a competitor's shop later in
the day. At the end of the day the
investigator arrived at the conclusion
that the successful dealer is the one
who uses horse sense in selling.

Any salesman interested in pro-
moting five-pack sales (and thereby
boosting the volume on his brand) is.
perfectly welcome to tell this true
story to his retail customers.

WHERE'S THE HARDEST
PLACE TO GET A SMOKE?

This time, R. L. Tippin of New
York carries away the Bulletin's five
dollar award for cigar boosting ideas
with the following letter which we
think is a blinger.

"Dear Phil M. Phulofax:

"Mr. Dolan, in your last issue,
alleges that a ball park is the hardest
place to buy a cigar. I think I can
go him one better. The most difficult
place to find a cigar when you need
one most, is a smoking car.

"Now, on those trains which do not
carry newsbutchers (and there are
lots of 'em) why don't they have a
slot machine in the smoking car for
the benefit of those suffering mortals
who are caught between stations with-
out a smoke?"

We'll bite. Why don't they? Is
there an alert maker of vending ma-
chines, or a progressive jobber, or a
wide-awake railroader in the audi-
ence, who'd like to pick up some large
blocks of loose change? Well, Mr.
Tippin has handed you the sort of
idea that might be run up into a
fortune.

Have you a good hunch for increas-
ing the sale of cigars? Send it to
Phulofax, care of Bayuk Cigars, Inc.,
9th Street and Columbia Avenue, Phil-
adelphia. Five dollars will be paid for
every idea printed.

(;if:^^

D.B.L

'i??**'"'»»'«* BAYUK CIGARS, INC, PhUit-
■■VM* - AfalMra mf/Utm €tgmr» ^»e* 1897

BAYUK BRANDS BUILD BUSINESS

Bayuk Philadelphia Perfect©

(BAYUK "PHILUKS")

Havana Ribbon
Mapacuba

Charles Thomson

Prince Hamlet

WHAT PRICE 'TMPTIES"?

We know one dealer who never
throws away his empty cigar boxes,
but piles them up at the back of the
store.

"It's an impressive way to display
my popular brands," he explains,
"and backs up my window and case
displays. Besides there are a lot of
garages in the neighborhood and the
mechanics like cigar boxes to keep
their tools in. I get a lot of trade
from the fellows who come in for the
empties."

ins 'Em Back A live" Boehler

'Bring

A RECORD -WHAT?

Do you remember the good old days
when orders grew on trees and all a
salesman had to do was to give the
tree a shake and hold a basket under
it? Well, the good old days are back
again — or something.

We think perhaps it's something —
and something that Adolf Boehler,
Philadelphia cigar salesman, has got.
Not long ago this same Mr. Boehler
went out and sold an order of cigars
to 218 separate retail dealers in one
week.

Something like a record — what?
But his lucky rabbit's foot must have
been working overtime that week,
^aybe — until you learn that the pre-
vious week he sold 163 orders, and
202 the week before that. In fact,
since the first of the year Mr. Boehler
has been selling an average of 26
orders a day, and he is servicing 547
active accounts every two weeks. We
don't know whether Mr. Boehler rides
a bicycle, but he certainly does get
around a lot.

The Bulletin has plenty of space
in its columns to give a big hand to
any other salesman who can approach,
tie or beat Adolf Boehler's record.

IT CANT BE DONE

"It can't be done," said the wise
boys just before Columbus stood the
egg on end.

"It can't be done," said the know-it-
alls. "Langley tried to make one of
those danged airyplanes fly and it
didn't go anywhere but down.*' The
words were hardly out of their mouths
before the newspapers were carrying
the story of the Wright Brothers' suc-
cessful flight. , . , T 1

"Nobody can sell that bird. I know
because I've tried it," says the sales-
man just before somebody else walks
off with the order.

"You can't do anything to increase
the sale of cigars," said the crepe
hangers. And the next thing they
knew the Cigar Boosters Association
was organized and under way. ^

About the only thing that can t be
done is to stop a well-organized group
of aggressive, intelligent men from
going where they're determined to go.
But who wants to stop C. B. A. from
going places? The idea is to join
C. B. A. and go places with it.

U. S. Cigars Up Nine Millions in May

HE following comparative data of tax-paid

products, indicated by the monthly sales of

stamps, are issued by the Bureau. (Figures

for May, 1934, are subject to revision until

published in the annual report) :

Products
Cigars (large)
Class A .

Class B ...

Class C ...

Class D ...

Class E ...

Total ..

1933

No.
No.
No.
No.
No.

322,307,280

4,884,187

49,163,302

3,859,552

235,616

317,009,680

2,428,077

48,236,746

3,459,775

238,703

380,449,937 371,372,981

SnulT, mfd Lbs. 3,299,653 3,192,611

Tobacco, mfd ,Lbs. 25,756,129 28,644,964

Tax-paid products from Puerto Rico (not in-
cluded in above statement) were as follow^s:

May

Products 1034 1933

Cigars (large) —

^ Class A No. 3,977,050 4,236,260

Class B No. 112,500 110,500

Class C No. 66,000 44,500

Total 4,155,550 4,391,260

Cigars (small) No. 100,000

(^igarettes (larire) ...No. 30,000

Cigarettes (small) ...No. 200,000 60,800

Tax-paid products from the Philippines (not in-
cluded in above statement) were as follows:

May

Products 1934 1933
Cigars (large) —

^ Class A No. 13,696,775 12,338,980

Class B No. 30,907 5,200

Class C No. 7,900 13,628

Class E No. 100

Total 13,735,582 12,357,908

Cigarettes (small) ...No. 163,000 117,660

Tobacco, mfd Lbs. 5 28

Internal Revenue Collections for May

Sources of Revenue 1934 1933

Cigars $993,fM)9.49 $940,087.19

Cigarettes 33,553,593.08 38,470,693.88

Snuff 593,937.52 574,669.94

Tobacco, c hewing and

smoking 4,636,604.18 5,156,499.96

Cigarette papers and

tubes 87,537.13 68,307.18

Miscellaneous, relating to

tobacco 253.17 43.54

t4

May Cigar Withdrawals 1920 to 1932 Inclusive
May, 1920. . . .676,227,828 May, 1926. . . .507,253,431

1921.... 555,497,120
1922.... 569,208,725
1923.... 575,915,851
1924.... 553,319,526
1925 .... 514,509,040

1927.
1928.
1929.
1930.
1931 .
1932.

.540,873,508
.541,500,682
.572,412,549
523,775,1(13
.467,299,6(il
. 368,553,366

Processing Tax Returns

Detail of collections from processing and related
taxes ])roclaimed by the Secretary of Agriculture un-
der authority of the Agricultural Adjustment Act
(Public — No. 10 — 73d Congress), approved May 12,
1933.

Total from
Month of July i, 1933
May, {Fiscal year

1934 1934)

Commodity
Tobacco (tax effective Oc-
tober 1, 1933)—

Processing tax

Import compensating

taxes

Floor tax, other than

retail dealers

Floor tax, retail

dealers

i!;2,01 5,608.95 $13,866,096.52

13,345.49 144,909.73

7,585.50 1,812,371.39

1,591.64 243,229.25

Total, tobacco. . . $2,038,131.58 $16,066,606.89

STATUS OF TOBACCO BILLS

(Continued From Page 1$)

subsection that **no such person shall be entitled to re-
ceive warrants unless he shall agree with the Secretary
of Agriculture to co-operate in the reduction programs
of the Agricultural Adjustment Administration in gucIi
manner as the Secretary shall prescribe'' has been
eliminated.

With respect to information returns, the alternjilc
penalty for violation **or by imprisonment not exceed-
ing one year, or both'' has been eliminated.

As regards the authority granted the Secretary to
establish cigar-leaf importation quotas ** based on aver-
age quantities of such tobacco imported into conti-
nental United States during the crop years 1932-33 and
1933-34" a provision has been added '* except that in
the case of tobacco imported from the Republic of
Cuba such quotas shall be based on average quantities
of tobacco so imported during the crop years 1926-33."

The A. A. A. Amendatory Bill, the Byrnes Tobacco
Grading Bill, the FlannaganBill, as well as the Harri-
son Bill (permitting States to tax interstate commerce)
remained unpassed. The Vinson Tol)acco Tax Reduc-
tion Bill also remained unacted upon.

However, by an entirely separate amendment (S.
3185) to the Agricultural Adjustment Act, which h.is
been passed by both Houses, it is provided that the fair
(exchange value of a commodity shall be the price there-
for that will not only give the commodity the same pm -
chasing power that* it had in the base period but will
also (New Matter) ''reflect cnrrent farm lahnr rnsh,
interest payments on farm indebtedness, and taxes <o>
farm property, as contrasted with such casts, iuterr4
and taxes during the base period.**

Th€ Tobacco WorU

Ne^vs from Congress

URTHER tax legislation will be sought by the
administration at the next session of Congress.
Studies of the revenue structure of the Federal
and State governments are now being made
with a view to modernizing the tax system and coordi-
nating Federal and State activities. Announced deter-
mination to reopen the tax law early next session gives
j)romise for the eventual success of the drive for lower
tobacco taxes. Although the House Ways and Means
Committee made a favorable report on legislation pro-
viding a 40 per cent, cut in these levies, the rush of the
last days of Congress made it impossible to secure any
action.

The major purposes of the proposed tax revision
will be the elimination of the present inefficient over-
la])inng of State and Federal revenue sources, as for
example in the taxation of cigarettes ; revenue increases
without drastic modification of the present rate struc-
ture, and a strengthening of collection methods.

During the remainder of the year members of the
House Ways and Means Committee will continue the
investigations initiated in 1933, one of the results of
which was the incor])oration in the recently adopted
Revenue Act of provisions ex])ected to eliminate loop-
holes through which the Treasury was losing some
^270,O()0,O()() a year.

GIVES RETAILERS CREDIT

In his letter of transmittal of the Retail Tobacco
Code to the President, General Johnson wrote: **One
of the outstanding features of the fair trade i)ractice
])rovisions is the cigar merchandising plan, which is
also found in the Wholesale Tobacco Code and the Code
for the Cigar ^fanufacturing Industry.

**The retail dealers originated this plan, and it
was proposed by them to the wholesalers and cigar
manufacturers. * At the public hearing on this code
it was suj)])orted by these three groups as well as by
representatives of tobacco growers. It now lia^ the
ap])roval of the Consumers Advisory Board, the In-
dustrial Advisory Board, the Labor Advisory Board,
and the Legal division.

'*It has long been a recognized custom of the in-
dustry for manufacturers to declare intended retail
prices, and the internal revenue taxes on cigars are
computed on such a basis. The plan is based on this
custom, but free competition between manufacturers,
as well as the industry's recognition of the imperative
need for retention of* the five-cent cigar, should serve
prevent increase in prices.

u»

»>

l(

COLD GRAY DAWN. MORNING AFTER"

The M. J. Dalton stand, at 017 diestnut Street, is
I'.'aturing a window display of Haddon Hall cigars this
week in ]U)pular sha])es and sizes, which is bringing the
• ustomers into the stand and making the old cash reg-
ister ring merrily. John Flanigan, the nuniager of this
|H»pular stand, apjjeared at the stand on Wednesday
iriorning with a downcast expression, and when asked
llie cause he ex])lained that his brother, the only one, by
the wav, that had never been associated with the cigar
iiidustrv, had entered the holy bonds of matrimony on
the previous evening and John had helped celebrate the
n.-easion appropriately. After this news had been dis-
seminated, there were no more wisecracks.

July I, 19S4

^ust Enough Menthol to Cool and
S^iibthe Without Destroying
The Natural Tobacco Flavor

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

<^^

JESSE A. BLOCH. Wheeling. W. Va .«•«....,.,..•*•«••.*. President

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

n. H. SHELTON. Washington, D. C Vic«-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

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A. HOLLINGSWORTH, 233 Broadway New York, N. Y President

CLIFF-ORD N. DAWSON, Buffalo, N. Y Executive Vice President

JAMES C. THOMPSON, Chicago, 111 Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. N'ew York City • ......President

MILTON RANCK, Lancaster, Pa First Vice.Presid<;nt

D. EMIL KLEIN. New York City Second Vice-President

LEE SAMUELS, New York City Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave., Newark, N. J. ...

ALBERT FREEMAN. New York. N. Y

IRVEN M. MOSS, Trenton, N. J

A. STERNBERG. Newark, N. J

President

First Vice-President

..Second Vice-President
Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE •■.••••. President

SAMUEL MAGID, 2001 N. Mervine St.. Philadelphia, Pa Secretary

THE NATIONAL ASSOCIATIONS OF TOBACCO .
DISTRIBUTORS, INC.

E ASBURY DAVIS. Baltimore. Md President

JOSEPH KOLODNY, 200 Fifth Ave., New York, N. Y Secretary

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

lOHN F BROWN President

HERMAN H. YAFFE," 30*1 Fox Building, Philadelphia, P» SecreUry

MIA.

WILL HAPPY OVER CIGAR GAINS

KAXK P. WILL, executive vice-president of
G. H. P., had spent only two days in his office
in three weeks, having just returned from a
trip to Chicago and Kansas City, where your
reporter found him preparing to accompany a cigar
manufacturers' code committee to AVashington, to ask
for a stay of the merchandising provisions of the Code
until August 1st, when it is exj)ected that organization
of the official code body will be completed. He took
occasion to pay a gracious tribute to Harvey L. Hirst,
who, he said,**'as head of the cigar manufacturers'
special code committee, did what the industry generally
thought was impossible, and held on like a bulldog until
his job was done." He took time, too, to rejoice again
over the continued increases in cigar withdrawals. '* A
gain of 301 million cigars in eleven months," he said,
*' should be enough to gladden the heart of everyone in
the cigar business. ' '

BAYUK BACK FROM SUMATRA

A^r BAYUK is back at his desk after an absence
of several weeks, during which he attended the
Sumatra sales at Amsterdam, as has been his
custom for many years . . . A Han C. Davis, of
the Xeudecker Tobacco' Co., distributor in the Balti-
more territory, was a recent visitor at the Ninth and
Columbia Av'enue headquarters . . . The House of
Jacoby, Atlantic City distributor, has done a swell job
in the' world's ])layground, where Phillies and other
Bayuk products are available everywhere, speaking
volumes for the enerurv and aggressiveness of the IL of

J. and its selling organization

Joseph Miller has

been placing Phillies throughout his La Crosse, AVis.,
territory, where he recently had the assistance of W. II.
Schulte, Bayuk factory man . . . The Barrow Penn Co.,
Roanoke, Va., is doing a good distributing job in their
sector, being assisted recently in a ])romotional cam-
paign by George Branzell, Bayuk territorial manager.

John Wagner & Sons, distributors, of Dock Street,
report business continuing on the upward trend, with
the higher grade cigars meeting with a good steady
demand. Imported Havana cigars aie also enjoying an
increasing demand, but the renewal of labor and politi-
cal troubles in Cuba recently is causing a serious short-
age in the available supply.

i6

Trade Notes

The Royalist Factory, North Second Street, is
huuiming merrily along in their new quarters and pro-
ducing tliose good Royalist cigars in (juantity to meet
the ever-increasing demand.

G. W. Saunders, Cortez representative, was in
town last week visiting the retailers and distributors,
as was also Fred Davis, of Scliwab, Davis y Ca. They
report a good denumd tor their brands.

Recent visitors in town include Steve Hertz, sales
manager for Haddon Hall cigars, and H. L. Basset t,
factory representative for the same house. Haddon
Hall is receiving its share of the increasing demand for
high-grade cigars in this territory.

Harry A. Tint, who operates the stand at 1420
(liestnut Street and is a director of the Retail Tobacco
Dealers of America, has returned from the Retailers'
Convention, hekl in Chicago last week. Harry reports
a very fine meeting, well attended, and some good work
accomplished.

Yahn & McDonnell, distributors, 617 Chestnut
Street, report business showing considerable activity
and their distribution and sales of their brands arc
showing a nice increase. The Julei) cigarettes, recently
taken on by this well-known house for distribution, arc
meeting with a pleasing recei)tion by the smokers here.
This cigarette is mint cooled.

&

Frank Flanigan, sales representative for M. Mar^li
:: Sons, Wheeling, W. Va., covering Pennsylvania, Del-
aware, Maryland and New York State, except the Mct-
rr)politan area, is sporting a new Plymouth auto witli a
great deal of pride. Frank thinks this is equivalent to
a vote of confidence for him from his company, and why
not? Marsh brands are heavily oversold in Frank V
territory and he is justly proud of the job he is doing
for his old-established house.

Tht Tobacco World

NBC

RED NETWORK

9t30-10 P. M., I. D. T.

New York WEAP

Hanford WTIC

Providence WJAR

Worcester WTAG

Portland WCSH

Philadelphia . . WFI-WUT

Schenecudy WGY

Buffalo WBEN

Pittsbursh VCAB

tt30-9P.M., I.S.T.

Baltimore WFBR

Washington WRC

Cleveland VTAM

Detroit WWJ

Qncinnati WSAI

•:30-9P.M., CD.T.

Chicaco WMAQ

7i30-tP.M., CS.T.

St. Louis KSD

Des Moines . . WOC-WHO

Omaha WOW

Kansas Oty WDAV

I

U. S. Cigars Up Nearly 231 Millions in 10 Months

ELEVEN MONTHS WITHDRAWALS FOR

CONSUMPTION

riGfars:
(Mass A—
United States .
Puerto Rico . .
Philip])ine Is. .

Total .

• • • •

First 11

Mos. Fiscal

Year 1934

3,470,567,280

53,647,330

215,624,665

— Decrease

-\-Increase

Quantity

-h 308,443,215
4- 1,086,450

+ 68,280,925

3,739,839,275 + 377,810,590

Class B—

United States . . .
Puerto Rico . ., .
Philippine I», , • .

Total

34,550,372

2,477,6CK)

218,241

— 927,017
-f 1,700,050

— 316,375

37,246,213 +

456,658

• • •

( Mass C—

United States
Puerto Rico ....
Pliilippine Is. . . .

Total

(MassD—

United States .
Puerto Rico . .
Philippine Is. .

525,701,420

890,180
227,918

526,819,518

40,151,889
1,(H>0
2,200

71,022,454

78,400

5,334

71,106,188

— 4,919,123

— 500
-h 124

Total

40,155,089 — 4,919,499

( Mass E—

United States
Puerto Rico .
l*hilippine Is.

Total

4,637,465

• •••>■■•

2,976

671,215

• ••••••

23,947

4,640,441 — 695,162

ntal All CMasses:

United States . . .
Puerto Rico . . . .
Philippine Is. . . .

4,075,608,426 -f

57,016,110 -h

216,076,(M)0 +

230,903,406

2,707,600

67,935,393

Grand Total . . 4,348,700,536 + 301,546,399

Little Cigars :

United States .
Puerto Rico . .
l*hilippiiie Is . .

Total

Cigarettes:

United States .
Puerto Rico . .
Philippine Is . .

Total

Large Cigarettes:

United States
Puerto Rico .
Philippine Is.

211,269,987 +
2,720,000 —

280,640
1,384,000

213,989,987 — 1,103,360

. 104,506,032,059
4,149,800
1,683,850

+ 7,571,433,000
+ 1,684,660
4- 188,580

. 104,511,865,709 + 7,573,306,240

88,336,317 +

855,000 +

6,400 —

85,695,889

415,000

5,591

Total

89,197,717 + 86,105,298

SnufT (Ih.^.):

All United States 34,881,909 -f- 2,772,129

Tohacco, mfd. (lbs.) :

United States . .
Philippine Is. . .

Total

280,606,012 4-
86 —

1,650,176
154

280,606,098 -f 1,650,022

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name

Street No.
P. O

-State.

}^*h 1, 1934

17

EmblUhed 1886

"BEST OF THE BEST

99

<^^^^ A. SANTAELLA & CO.

Office, 1181 Broadway. Naw York City

FACTORIES: Tampa and Ktg Wtat, Florida

OUR HIOH-GEADE NON-EVAPOIATINO

QGAR FLAVORS ^, ^ .u . k ««

Maka tobacco mellow and amooth In charactar
and Impart a most palatable flavor

FUVORS FOR SMOKING and CHEWING TOBACCO

Write for Liat of Flavors for Special Bf-njj ^,.,
EHTUN. AAOMATIZBI. BOX FLAVOBS. PASTE SWEETBNBBS

FRIES 6l BRO.t 92 Reade Street, New York

j'A»;j'.v»'jivty^:.v»y^:v«y;;.v»y.':v.»/;;v»/, '

Classified Column

The rate foi this column U three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c.) payable
strictly in advance.

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

Newspaper and magazine advertising executive, thoroughly
experienced, formerly with local newspapers and agencies, and also
advertising manager. Position with firm desiring an advertising man,
salesman or assistant to manager. Knows marketing, merchandis-
ing and distribution. Salary not as important as opportunity to
•flemonstrate actual worth and ability. References the highest
Address, F. H. Riordan, 5915 Webster Street. Philadelphia, Pa.

.CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
! Address Box No. 558, "The Tobacco World."

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

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last PuflF,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, JtV^fS^lTY

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

Registration,

Search,

Transfer,

Duplicate Certificate,

(see Note A),
(see Note B),

$5.00
1.00
2.00
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.

REGISTRATIONS

EYES TELL:— 46,339. For all tobacco products. C. Doering &

.Son, Chicago. 111.. June 14, 1934.

HUMAN HEAD: — 46,340. For all tobacco products. Charles Doe-
ring, Chicago, III., June 20, 1934.

COACH-AND-FOUR:— 46,341. For all tobacco products. Crimson
(.'oach, Inc., Tokdu, (Jhit», June 21, 1934,

CORRECTED PUBLICATION

New Registration

EYES TELL: — 46,342. For all tobacco products. Registered June
14, 1934, by Charles Doering, Chicago, 111.

WHOLESALE CODE

(Coutinued from Page S)

not r(^aliz(^(! price below the mtniTnuTn price determined
upon the hasc.*^ so fixed, and any such sale shall he
deemed destructive ])rice cuttinj^. From time to time,
the Code Authority mav recommend review or recoii-
sideration or the Administrator mav cause anv deter-
mination hereunder to he reviewed or reconsidered,
and a|)propriate action taken.'*

Section .'J. Notwithstanding the j)rovisions of this
Part II anv wholesale distiihutor mav sell anv tohacco
product as low as the price set l)y any competitor in
ins trade aiea on merchandise which is identical or
e.ssentially the same, if such competitor's price is set
in conformity with the i>rovisions of this Section, ])ro-
vided that such wholesale distiihutor shall immediately
notify the Code Authority or its nearest local agency
of such action and of all facts pertinent thereto.

Section 4. Notwithstanding any of the provisions
of this Part II, anv tohacco wholesaler mav sell at less
than the prices therein prescrihed merchandise sold
as hona tide deaiance or hona fide discontinued lines
of merchandise or imjierfect or actually dama'^ed mer-
chandise or merchandise sohl upon the comjilete linal
liciuidation of anv husiness or merchandise donated
for eharitahle ])urposes or to unemployment relief
airencies, j)rovided that all such m»'rchandise shall l>e
advertised, marked and sold as such and that a strip
lahel shall he placed across the inside lid lahel of hox
goods to he disposed of, stating the reason the said
merchandise is heing sold l>elow the jircscribed prices
thereof and pnivided further that such merchandise
shall be disfjosed of pursuant to any regulation as to
the manner of such disposal which shall he issued hy
the Code Authority suhject to the disai>i)roval of the
Administrator.

c 9

iniimmiiHiiiii^i^

JULY 15, 1934

mnnni

LIBRAP^yi4
JUL lb 1934

E

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la., Pa.
Hanover, Pa.
Cincinnati, Ohio

Vnrk Pft

AUTOKRAFT BOX CORPORATION ^ J^^^ ,1

LIMA OHIO Detroit, Mich.

A NatioixWide Service Wheeling, W. Va.

m

IIIIIIIIIIIIIHIIIIIIIHIII

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA.

After all
[nothing satisfies l»l*c^
a good cigar

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriihinating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember that Regjrdleu of Price

THE BEST CIGARS

Al PACXrD IN

WOODEN BOXES

THE TOBACCO WORLD

Vol 54

JULY 15. 1934

No. 14

liKASE lot us not inisuiKkMstaiul tlu» purpose
of a code of fair (•ouii)etitiou for an industry.
It is not the puri)os(.' of a code of fair coinpeti-
tiou to ^uarautoc i)i()fits to business men. It
is the ])urpose of a code to esta])lisli satisfactory con-
ditions for labor, shorter hours and increase wai»es. It
is the purpose of a code of fair competition to establish
fair trade practices — ethical methods of business con-
duct.

It is pathetic that so few business peoi)le realize
that the establishment of ethical methods is just as
conducive to the buildiui* of successful business as a
guarantee of ])r()fit.

If your competitor cannot allow excessive dis-
counts; if he is ])ayin;L' his labor decent salaries; if no
one smun'^les controlled biands; if everybody submits
an itemized l)ill with each sale; if no one L»ives any
rebates with sales — these are as important — as far-
reaching — as a guarantee of a large mark-up.

These ])rovisions are embodied in the code and
are now law for the wholesale tobacco industry.

Ctj Ct3 Cj)

XOTHKR point which so many people seem to
overlook: If your competitor is to pay his
labor decent salaries; if he is to emi)loy them
on a basis of shorter hours; if he is to guaran-
tee his salesmen a minimum salary; if he is to comply
with all the recpiirements of safety ami well-being —
all these, immediately, eliminate the sales of goods
below cost.

Furthermore, a code of fair competition enables,
authorizes, and encourages mend)ers of an industry to
unite for the purpose of further elevating the stand-
ards, and promoting the welfare of the industry.

You will be exi)ected — under the code — to comply
with the re(iuirements of the National Code Authority.
Among them are the following:

A — Monthly rejjorts on the forms furnished by the
Code Authority. These reports will make known the
number of employees you have; the number of hours
they work; salaries you pay; your volume of business;
capital investment, accounts receivable, and a number
of other pertinent factors of your business. All the
iufornuition reaching the Code Authority is strictly
confidential. It is (Jovernment property, and no one
has access to it.

B — You will have to comply with many re<iuests of
your regional director. His job will be to co-ordinate,
harm<mize and strengthen the jjosition of the whole-
sale distributors within the area under his jurisdiction.
Please resiHUid to his requests. He is not getting luiid
for this service. He merely co-o])erates with the indus-

try to help straighten out conditions.

C — You will receive a number of requests from
your local code authority. Of course, you know these
people — you are intimate with them. They are your
immediate com])etitors. Please forget they are your
competitors. Meet with them and arrive — with their
co-operation — at constructive methods for the correc-
tion of many destructive evils at i^resent destroying
the means of deriving a livelihood from vour business
and a nicar/f'r rriurn on your investment.

Our compliments to Joseph Kolodny for the fore-
going editorial. He did not w^rite it as an editorial
but as a bulletin to the members of the National Asso-
ciation of Tobacco Distributors, innnediately upon the
ap])roval of the wholesale code. As everyone in the
industry knows, Mr. Kolodny is the energetic secretary
of the Wholesalers' Association and chairman of its
Code Committee.

CJ3 CJ3 Ct3

^wm^ y^ went to a meeting of cigar retailers the other
^\^ night. If it is pathetic, as Mr. Kolodny says,
that so many wholesalers do not realize the
benefits which will accrue from the mainte-
nance of fair ])ractices, then it is positively pitiful that
so many retailers refuse to turn a finger to help them-
selves. They complain and mutter to themselves about
how their business has been shot to hell by the price-
cutting of chain stores and other evils, yet when they
are asked to dob up a few measly dollars as a small
share of the cost of an association which will help to
protect them from such chiseling and unfair practices,
they refuse. They seem to think that the Code, unlike
the' Lord, will hefp those who do not help themselves.
Their motto is ''Let George Do It.'*

Cj3 Ct3 C?3

NE of these days, the cigar retailers nuiy wake
I up to a realization of the benefits that come
to every single individual in an industry when
all the individuals in that industry are united
in a conuHon i)uri)ose. In the meantime, they should
give thanks that there were at Washington working
hard for them during the last year men like Hollings-
worth, who directly represented them; Kolodny, who
assisted greatly in* furthering the interests of the en-
tire merchandising division, wholesale and retail; and
Hirst, to whose indefatiga))le and intelligently directed
efforts men like Frank Will gives the lion's share of
the credit for the final fornudation and approval of
the Code. It is no secret that the retailers got their
code thi-ough with no expense to them worth talking
about, the costs being largely borne by the wholesalers
and the manufacturers.

^^i:'L?yXT.\^^^^^ ^-50 a year. Entered as second-class ma.I matter.

December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

Amendment to Processing Tax

Smoking Pipe Code Amendments

New Hate
3,3^ per lb.

it

3.7(^

4.8^

( i

i i

^i

OLLOAVIXO tlio ])iiblic lieariiiii: held on May
l!4tli last, the Seerolary of Agriculture has
issued an aiiieiidnieut to the processing tax reg-
ulations reducing the basic rate on thie-cured
tobacco used in the manufacture of plug chewing to-
bacco and twist l»y M per ])ound, elTective August 1,
1934. As a rcsnh, the rates on such t()])acco when used
for the ]iurposes indicated will be as follows, on and

after Auuust 1st :

0/^/ Hafp

Farm Sales AVeiglit •L2f per lb.

In Processing Order:

Stem not removed 4.7<^ **

Stem removed ()-l<^ *'

It Avill be recalled that a similar reduction was
announced by the Secretary of Agriculture some tune
ago, l)ut was never put into elTect by the Treasury De-
partment due to some legal objections. However, the
Agricultural Adjustment Act has subsequently been
amended with a view to overcoming these objections,
and it is to be assumed that adeciuate instructions will
now be issued by the Treasury Department in time to
be in the hands of the various revenue collectors before
the etTectivc date of the reduction.

The full text of the amendatory regulations is
quoted l)elow. Although officially api)roved as of June
30th, printed copies are not yet avaihd)le and it was
not until July 9th that the Toliacco Merchants Associa-
tion of the lAiited States succeeded in obtaining a type-
written copy.

UNITED STATKS DEPARTMENT OF
ACJKirULTUKE

AciaciLTVRAL Adjustment Administration

(Tobacco Kegulations, Series 2, Revision 1)

(Rate of processing tax with respect to the processing
of Hue-cured tobacco used in the nuinufacture of
plug chewing tobacco and twist, and (k'iinitions.)

Revision of Tobacco Regulations Made by the Secre-
tary OF A(jriculture With the Approval of the
President Under the A(;ricultuual Adjustment
Act.

United States Department of Agriculture,

Office of the Secretary.

P>y virtue of the authority vested in the Secretary
of Agriculture ]»y the Agricultural Adjustment Act,
approved May 12, 1933, as amended, I, Henry A. Wal-
lace, Secretary of Agriculture, do nuike, prescribe, pub-
lish and give jiublic notice of these regulations (consti-
tuting a revision of Tobacco Regulations, Series 2, and
to the extent of such revision, but not otherwise super-
seding such regulations) with the force and effect of
law, to be in force and etTect until amended or super-
seded by regulations hereafter made by the Secretary
of Agriculture, with the ai)proval of the President,
under said Act.

I do liereby find as of August 1, 1934, after investi-
gation and due notice and opportunity for hearing to
interested parties, and due consideration lumng been
given to all of the facts, that in the first domestic proc-
essing of flue-cured tc,>bacco the rate of processing tax,
as determined bv the Secretarv of Agriculture, with the

approval of the President, in Tobacco Regulations,
Series 2, paragraph C, is causing and will cause such
reduction in the quantity of flue-cured tobacco, manu-
factured into plug chewing tobacco and twist, domesti-
callv consumed, as to result in the accumulation of
surplus stocks of flue-cured tobacco, ur of plug chewing
tobacco and twist produced therefrom, or in the depres-
sion of the farm price of flue-cured tobacco. I do hereby,
accordingly, determine, as of August 1, 1934, that the
l)rocessiiig tax on the first domestic processing of flue-
cured tobacco used in the manufacture of plug chewing-
tobacco and twist, shall be at the rate of 3.3 cents per
pound, farm sales weight, which rate, as of the effective
date thereof, will prevent such accumulation of surplus
stocks of flue-cured tobacco, plug chewing tobacco and
twist produced therefrom, and the depression of the
farm price of flue-cured tobacco; whenever flue-cured
tobacco in processing order from which stem has not
been removed, is processed in the manufacture of i)lug
chewing tobacco or twist, the measure of tax shall be
three and seven-tenths (3.7) cents per pound of such to-
bacco ; whenever flue-cured tobacco in processing order
from which stem has been removed, is processed in the
nuinufacture of plug chewing tobacco or twist, the meas-
ure of tax shall be four and eight-tenths (4.8) cents per
pound of such tobacco; these amounts being in accord-
ance with the respective weight relationships deter-
mined to exist between flue-cured tobacco in such states
aud the farm sales weight of flue-cured tobacco.

I. Definitions
The following terms, as used in these regidations,
shall have the meanings hereby assigned to them:
Plug Chewing Tobacco — Plug chewing tobacco is
chewing tobacco manufactured and pressed into
flat cakes.
Twist — Twist is the type of chewing tobacco manufac-
tured in the form of a twist.

In witness whereof I have hereunto set my hand
and caused the official seal of the Department of Agri-
culture to l)e affixed in the city of Washington, this 3(lth
day of June, 1934. (Signed) II. A. Wallace, Secretary
of Agriculture.

A])proved: (Signed) Franklin D. Roosevelt, The
President of the United States, June 30, 1934.

BAYUK WINS SWEEPING DECISION

The action filed in the Common Pleas Court of
York County, Pennsylvania, by Bayuk Cigars, Inc.,
versus Moe Heller, defendant, has been decided by a
decree in favor of Bayuk Cigars, Inc., and the cost ol
the suit charged against Moe Heller, defendant.

The action in this case was based on the claim of
Bayuk Cigars, Inc., that Moe Heller was infringing
npon the package, trade-mark and label of the Bayuk
Philadelphia Cigar.

The findings of the court enjoined the defendant,
Moe Heller, his agents and employees, from prepar-
ing, putting up, selling or offering for sale or distribu-
tion to the pul)lic cigars in packages bearing copies
of labels using as a distinctive word thereon the word
''Philadelphia," also from using bands resembling
bands used by Bayuk Cigars. In addition, the decision
enjoins Moe Heller from employing the word "Phila-
delphia" upon any label or cigar band in any other
way or form in the sale of cigars other than Bayuk
Philadelphia Cigars.

Tht Tobacco World

UK SMOKING PIPE manufacturing industry,
through its Code authority, has submitted an
application for modification of the Code of
Fair Competition, and a public hearing was
held in the Mayflower Hotel, Washington, on July 13th.
Among the amendments submitted by the Code author-
ity were several under the head of Article VII — Trade
Practices, which are of interest to the tobacco trade
generally, especially to those in the merchandising di-
N'isions.

It was proposed that Section I of this article be
amended by adding the following :

A member of the industry may sell a product of
the industry below cost in order to meet the competition
of another member of the industry, ])rovided that the
article sold by the other member of the industry is of
the same quality, quantity, design, material and is a
comparable article, and provided further that no such
sale shall be made without notice to the Code authority
in which notice the member of the industry shall set
forth the time and place of such sale, name of the cus-
tomer, the quantity sold, the terms of sale, and the
name of the conqietitor who sold the same or compa-
rable article wiiich caused the member of the industry
to sell below cost.

Add to this Article Section 13 (a), as follows: ^

(a) In order to comply with Section 13, Article
\TI, every member of the industry must insert in every
box or container holding a i)ipe or pipes, a card or no-
tice which shall read as follows:

Important Notice From the Code Authority Under
the Code of the Smoking Pipe Manufacturing
Industry.
(Red) Mr. Consumer: T)o not ask dealers to J^*

place smoked pipes as the NRA Code for the Smoking
Pipe Manufacturing Industry makes it illegal for him
to do so.

Section 13, Article VII of the Code reads as fol-
lows :

"Trade Gnarantees — Pipes priced for sale, at less
than $1.00 shall not be sold upon a guarantee of replace-
ment in the event that the same prove unsatisfactory;
and no manufacturer shall accept a return of a used
pipe or replace the same, except for defective manufac-
ture, such adjustments to be made only hetiveen the
fnaHufacturer and the ultimate consumer.^'

(Red) There is no Guarantee of any kind on
mouthpieces: Manufacturers will replace only burned
out bowls of pipes retailing for $1.00 or more, if re-
turned within thirty days after the date of sale, and
then only if bowls are given normal usage.

Replacements will be marked X and only one re-
placement will be made.

Dealer may perform the service of packing and
mailing the burned out pipe to the manufacturer giving
consumer's name and address, but he nuist not make
any replacement from his stock as this is not permitted
under the law. Such replacement if justified will be
returned direct to the consumer.

Add to Article VII the follow^ing Sections :

15. All merchandise shall be sold on the basis of
f. o. b. shipping point.

16. Piracy of trade names, styles and designs is
prohibited. In order to enforce this provision all trade
names, styles and designs shall be deposited with the
Code authority in accordance wdth rules to be deter-
mined by the Code authority. Patented aud copyrighted
items are to be excepted.

Plant Pest and Quarantine Work Merged

WO major units of the United States Depart-
ment of Agriculture, the Hureau of Ento-
mology and the Hureau of Plant Quarantine,
have been merged into one, to be knowii as
tiie Bureau of Entomology and Plant Quarantine. ^The
new organization takes over fnmi the Hureau of Plant
Industry the activities on the control and eradication
of five important plant diseases.

This consolidation, which went into effect July Ist,
Secretarj^ Walhice points out, will permit greater
economy of administration in the departmenCs search
for better methods of insect pest control and in the
regulatory work necessary to prevent the spread of
plant pests and diseases. It also ensures better co-
ordination and more effective direction of the various
parallel lines of research and control activities.

Lee A. Strong, chief of the Bureau of Plant Quar-
antine from December 1st, 11)29, to October 1, 1933,
and since then chief of the Bureau of Entomology, has
l)een appointed chief of the new bureau. S. A. Rohwer,
now assistant chief of the Bureau of Entomology, and
Avery S. Hovt, now assistant chief of the Bureau of
Plant Quarantine, will be assistant chiefs of the new
bureau. F. H. Spencrr will be business numager.

Research in the Bureau of P^ntomology and Plant
Quarantine will cover studies on the life history and

July 13, 1934

habits of beneficial as well as injurious insects, with
a view^ to developing practical methods for destroying
injurious insects and promoting the increase and
spread of those found beneficial.

The regulatorv work, under the authority of the
Federal Plant Quarantine Act, will include the enforce-
ment of quarantines and restrictive measures to pre-
vent the entry into, or the spread within, the United
States of dangerous plant diseases and insect pests.

Under the new arrangement the different lines of
work on related subjects, whether regulatory or re-
search, are brought together in a single unit. The
work of collection, introduction and clearing through
quarantine of foreign parasites for the control of in-
jurious insect pests established in the United States
has been placed in a single division under the direc-
tion of C. P. Clausen. The fundamental investiga-
tions to develop control methods by the use of in-
secticides, attractants and rcpellants have been
broui^ht together in the Division of Control Investiga-
tions'^ under Dr. Lon A. Hawkins. The Division of
Household and Stored Product Insects, in the Bureau
of Entomology, as such, has been discontinued, and
the work assigned to other divisions. Studies on in-
sects attacking stored products have been transferred
to the divisions concerned with the insects that infest
the same crops in the field.

MIA.

Developments in Growers' Program

BAYUK BUSINESS BITS

IKL8()X (^KiAK (^O. is oxtoiulin^- tlie sales of
Bavuk Phillios in the Ciiieiniiati territory,
where the brand is ra])idly nainini*' in popnlar-
itv. The eonujanv recently had the assistance
of F. .1. Ilornini*-, Bayuk salesman, in a s])ecial cani-
paiun . . . Harry Catlin, of the sales de])artnient,
sto])ped in at Baynk liead<inarters last week prior to a
Western trip . . . Oakland Tobacco, in the California
city of that name, in order to meet the exist inuc demand
for Baynk Phillies, wired the factory for rail ship-
ments, owinii- to the tie-nj) of water shi])ments by the
dock strike ... A. ('. Hoy, New Hnuland territorial
manager, recently ])aid a visit to the factoiy. He was
all pep])ed up over the way J*hillies are sellini;- Way
Down East and he anticipates an even ,u:reater distri-
bntion and sale of the brand.

NEWS FROM THIRD & BROWN

RANK P. WILT., exeentive vice-president of
(J. H. P., is sjK'ndin.ir 90 per cent, of his time on
Code Connnittee work and 10 per cent, on El
Producto and La Azora. Much of his time in
the current week is occupied with orv:anization meet-
inics in New York . . . D. A. Jenks, assistant sales nian-
asrer, left for Boston last Monday ni.ujht and planned
to cover New York as well betore his return to head-
(piarters later in the week . . . Bill Cleary, whose inten-
sive work on El Producto and La Azora is very helpful
to the Lou«;hran i)eo])le in Baltimore and Washint!:ton,
is spendinir his vacation in his home towu, Kansas City,
lari^ely to allow his mother to become ac<piainted with
her charminu- dau.ii:hter-in-law. Bill, whose surname
betokens a ,u:entleman, a scholar and a ii:ood judiic of
ci<i:ars, is president of the Tol)acco Salesmen's Associ-
ati(m of Baltimore.

We liad the privilege this week of inspectin^^ a
shiimient of Romeo y Julieta ci<cars which John War-
ner & Sons had just received from Cuba, and were
amazed at the si)lendi<l uniformity in color, shai)e and
size which ran throuichout the various sizes of this
famous brand. Prices of the various sizes in the ship-
ment ran from twenty cents each to $1 each, and upon
seeing the splendid workmanship on these brands, one
retail stand operator here immediately ordered lt)00 of
the top size.

Trade Notes

The Habanello ci<;ar is beina: well displayed by
dealers in this territory and increased activity on this
luand is })eing noted at factory headquarters.

H. L. Bassett, factory representative for Hadtlou
Hall cipirs, was in town last week visiting- their local
distributor, Yahu & McDcumell Cii::ars.

Garcia y Vega ciu:ars are showing a si)lendid in-
crease in <lemand since more than one hundred dealers
here bejiran dis])lavini»: the new Garcia v Veira window
card.

Herman Abrams, factory representative for Med-
alist cigars, has just returned from a tri]) to Atlantic
City and other South .Jersey seashore poiuts, in the
interest of his biaud, and i-e])oits a most successful
trip.

Plans for the successful aduiinistration of the Cndv
of F^air Competition for the Whoh'sale Tobacco Indus
try aie piogressing favorably, and the headquarter^
oftlu' Philadeljihia conuuittee will be at :?7 North Sec-
ond Street. Tlie committee will consist of Nelson Eber-
bach, of A. B. Cunningham & Co.; George Frings, of
Flings Bros. (Uk. and Phil Gordesky, of th<' Franklin
Tobacco Co. A fourth member is contemplated, but
announcement of his selection has not been made.

Sam Adler, of Villazon & Co., Tampa, was in town
last week visiting the distributor of his brand, John
\Vagner & Sons. Mr. Adler reported that l)usiness on
his brand in this territory was showing an amazing
increase in this territory as compared with the same
period of last year, and, in fact, the same conditions
prevailed in otlier sections of the country. Mr. Adler
was enroute to Atlantic City, wliere he will make his
headquarters for the l)alance of the summer.

Th4 Tobacco IVorU

By J. B. HUTSON,
Chief of Tobacco Section, A. A. A.

T IS unnecessary for me to review^ the condi-
tions that have jirevailed duiing the past few^
years on most farms on w^hich tobacco is grown.
Your income was reduced to a bare existence
level. You could not buy and you could not pay. It has
been our task under the provisions of the Agricultural
Adjustment Act to aid you in bringing about an im-
])rovement in this situation. It is our task to aid you
in bringing about further improvement. Y'^ou have
shown a willingness to cooperate in a more determined
and united way than any grouj) before you since the
connnercial jn'oduction of tobacco was first begun in
Virginia Colony over 300 years ago. During the past
year more than 90 per cent, of all tobacco growers have
agreed to coo})erate with their neighbors in a joint
attack on the problem. What is more, you have indi-
cated that you were willing to assume i)ersonal respon-
sibility for the success of the joint undertaking.

Let us review briefly the developments of the past
year: As the 1933 markets opened, prices were near
the low levels that had prevailed during the two pre-
vious seasons. Tobacco farmers ai)pealed to the Agri-
cultural Adjustment Administration and jiledged their
full su])port behind a campaign to reduce the 1934 crop
in return for reasonable ])rices for the 1933 crop. The
story of the past history-making year, so familiar to all
of us, is a marvelous tribute to the lighting spirit and
cooperative etTort <»f the tobacco growers of this
country.

In an incredibly short time, more than 90 per cent,
of all tobacco growers in the United States signed con-
tracts to reduce the 1934 crop. They agreed to reduce
the 1934 crop to around 1,(H)0,000,0()() jmunds, a reduc-
tion of about 30 per cent. Sucli a crop would be as nmch
below the level of consumption as the 1933 crop was
above that level. Marketing agreements were entered
into with domestic manufacturers in which the prospec-
tive reduction for 1934 was capitalized on in terms of
increased prices for the crop then being sold.

It is estimated that the income for the 1!)33 crop
from sales on the markets was ai)proximately $r)0,000,-
000 larger than it would have been, chietl> because of
the coo])eration of tobacco growers in agreeing to re-
<luce their next year's croj). Growers received
$179,000,OCK) for the 1933 crop from sales on the nuir-
kets. In addition, farmers are receiving during the
current nuirketing year approximately $28,000,000 jn
rental and benefit payments, nuiking a total of $207,-
000,000. This is close to the total income that tobacco
farmers received for their 1930 crop and is only slightly
below the average for the last ten years.

Flue-cured growers received an average of 9.5
cents a pound for the two crops grown in 1931 and
1932. In 1933, however, the Atljustment program
helped boost this average to 15.3 cents a jHumd. Fire-
cured groweis, who received less than 7)S) cents a pound
ff»r the average of the 1931 and 1932 crops, secured an
average of 8.1 cents a ])ound in 1933. Burley growers
received an average of 10.3 cents a ])ou!id for tlie 1931
and 1932 crops. The 1933 crop was 40 ])er cent, above
the level of consumption and the total su])ply 11 per

July 15. 1934

cent, larger than in 1931 and 14 per cent, larger than in
1932. In spite of this burdensome surplus situation,
the price was above the average of the two previous
years. The average price for all types was 12.9 cents
a pound in 1933, compared w4th less tlian 9 cents a
pound for the two previous crops.

The increase in income to flue-cured tobacco farm-
ers because of a '* promise to reduce acreage" is amaz-
ing, almost unbelievable, but it actually happened as
all of you know. It paid old debts, bought necessities
and even luxuries, and brought new^ opportunities and
new hope to farm people, who were pretty badly
crushed and disheartened. Let's examine the record,
comparing the income by States for tlue-cured tobacco
for the 1932 crop without a program, and for the 1933
crop with a program.

Flue-Cured Tobacco
Market Receipts to Fanners

State 1932 Crop

Virginia $2,580,000

North Carolina 34,710,000

South Carolina 4,475,000

Georgia 1,255,000

Florida 140,000

1933 Crop
$9,130,000
85,560,000
11,1(30,000
6,540,000
450,000

Total $43,160,000 $112,850,000

Flue-cured tobacco farmers also received benefit
payments as follows:

Estimated Flue-Cured Benefit Payments

Virginia $470,000

North Carolina 5,380,000

South Carolina 1,715,000

(Jeorgia 1,390,000

Florida 85,000

Total $9,040,000

Considerable portions of the payments to States other
than Virginia are price-equalizing ])ayments. It will
be recalled that the 1933 crop in Virginia was sold after
the i)rice increase occurred, following the signing of the
flue-cured marketing agreement. Prices in the Old Belt
averaged 16.6 cents per imund compared with an aver-
age of 14.6 for the remainder of the flue-cured district.
The ])rice-e(pudizing payments were nuule to those
growers who sold early, to equalize in so far as possible
the advantages which were obtained from the adjust-
ment program.

Certainly, flue-cured tobacco farmers of the South-
east are more cheerful. But what is the outlook for the
1934 marketing season?

With a 30 per cent, reduction and a 95 per cent,
sign-u]), the flue-cured tobacco planted under contract
totals 672,000 acres. It is estimated that api)roxinuitely
28,000 acres, not under contract, will be i)lanted. This
gives a total of 700,000 acres planted in 1934. Assum-

ing slightly above normal yields, the 1934 production
can be predicted at around 525 million pounds. This is
about 215,000,000 pounds less than last year's crop.

Stocks on hand July 1, 1934, appear to be about
800,000,000 pounds. Add to this the current 525,000,000
pounds crop and the total supply ligures tor tlue-cured
rouiul out close to 1,325,000,000 pounds compared to
1,420,000,000 as the market opened last year. If there
is anything in supi)ly and demand reUitionships, pros-
pects for Hue-cured tobacco prices should be consider-
ably brighter when the market opens this year, coni-
l)ared to a year ago.

Keasoilable prices to growers in 1933, that nor-
mally might have been followed with about a 30 per
cent, increase in acreage in 1934 and poverty prices,
turned out just the opposite. By keeping their promise,
and by maintaining control of their own production,
tobacco farmers have removed the age-old objection of
manufacturers to paying reasonable prices — that of
raising a crop all out of reason, following good prices.
Now that this objection has been overcome under the
new order, manufacturers should keep faith with to-
bacco farmers and pay increased prices for a smaller
crop. Farmers, in turn, should continue to control pro-
duction, so as to secure the highest jjossible net profit
from their tobacco crops. They have this in their power
and they have the vision and intelligence to keep this
control.

The second step in controlled tobacc'o production
is the Kerr-Smitli Tobacco Act passed on the final day
of the ISevenly-third Congress. This bill is the answer
to the direct request of farmers, cooperating in adjust-
ment programs, that they be protected from the non-
cooperating minority. The overwhelming majority of
cooperating tobacco farmers did not wish to see tlieir
efforts to reduce production in line with nuirket needs
offset to any appreciable extent by the non-cooperator,
who increases his i)roduction, or the new grower who
spreads the acreage and the territory. In addition,
cooperating growers believed it was unfair for non-
cooperators to "ride free"' and enjoy benefits which
were made possible by majority cooperation.

The main provision of this Act is the levying of a
tax of from 25 to 33 1,3 per cent, of the sales value of
the tobacco of non-contract signers, beginning with the
3934 crop. .Maryland, Virginia 8un-Cured, and cigar-
leaf tobacco are exempt from the Act of 1I>34. At the
request of three-fourths of the growers, any type may
be brought under the Act in 1935.

Tobacco growers emphasized that the effect of the
new Act is to equalize conditions to all tobacco growers
and not to compel or prohibit any farmer from grow-
ing tobacco. Neither is it intended to force any tobacco
grower to sign a contract. Growers participating in
the production adjustment programs agreed to reduce
production approximately 30 per cent. This w^as fol-
lowed by a 30 per cent, price rise for the 1933 crop.
Growers planting their normal acreage or increasing
it will receive just as nmch for their tobac-co, after they
have paid the tax, as they would without the tax, had
no reduction program been otTered.

Small growers and other growers, who through
unfavorable situations of some kind, have been unable
to establish satisfactory bases, and have not signed
up, may be taken care of under this Act. The Secre-
tary of Agriculture is authorized to allot tax-pajanent
warrants to non-signers up to 6 per cent, of the tobacco
in each county of the total allotment of contracting
producers. Two-thirds of these warrants to non-
signers must be to small growers whose allotments of

8

warrants are for 1500 pounds or less. Included in the
eligible group for tax-exempt warrants will also be
farmers who lost their farms during the depression
])eriod and have recently reclaimed them; tenant
farmers displaced on farms covered by tobacco con-
tracts, W'ho have been unable to obtain a place on farms
covered by contracts; and those tobacco growers of
long experience, who have recently acquired farms with
no recent tobacco history. Every effort will be made to
humanize the program and to give a fair chance to
deserving individuals.

In each crop year in which the tax is levied, non-
transferable tax-pa>Tnent warrants wdll be issued to
every tobacco growler co-operating in production ad-
justment programs. These warrants will cover the
number of pounds of tobacco which each co-operating
farmer is permitted to market under his reduction
agreement. These w^arrants will be accepted as pay-
ment of the tax on the sale of his tobacco.

In fairness to all tobacco growers, the Act provides
that a new opportunity be offered for signing contracts,
to avoid payment of this tax. Adjustment contracts
will be available for growers to sign through July 28th.
During this same period, non-contracting growlers will
be given an c»pportunity to make applications for tax-
payment warrants. It will not be necessary for pro-
ducers under contracts to make application for these
warrants. The warrants will be issued to these growers
at the time they market their tobacco, up to the full
amount which they are permitted to sell.

The Kerr-Smith Tobacco Act is a protective, not a
prohibitory nor a compulsory measure. Its real pur-
pose is to protect growers co-operating for the general
good of the industry and to guarantee that the benefits
of this co-operative undertaking shall go in the fullest
measure to the co-operators.

Some who are inclined to be critical have said
that the bringing about of improved prices to tobacco
growers will cause a loss in consumption. All along
we have tried to develop our programs in such a way
and to make such adjustments in them as would pre-
vent any results of this kind. Only a few weeks ago,
when it appeared that the crop might be short in somr
parts of the flue-cured belt, we announced that growers
might increase their plantings. They were allowed to
l)lant 80 per cent, of their base acreage instead of the
70 per cent, originally allotted. In order to equalize the
opportunities as between the different growers, pro-
vision was made for the reduction of the payments to
those farmers who planted the larger acreage.

At the same time, the announcement was made that
all growers would be given an opportunity to sell HO
per cent, of their base poundage instead of the 70 per
cent, originally allotted. There are some growers in
every community who will produce more than the
poundage originally allotted. After carefully consider-
ing the question, it appeared advisable to permit such
growers to increase their sales provided they are will-
ing to accept smaller adjustment payments. In the
end, this will mean that the grower who is favored by
w^eather conditions w^ill produce and sell a larger crop,
for which he will receive more on the market than his
neighbor who is less favorably situated. But if hr
sells more, he will receive smaller adjustment pay-
ments. The contract already provides that the growers
wiio produce less than their allotment will receive de-
ficiency payments. The net result of these two pro-
visions is that the growers who plant or sell the larger
quantity of tobacco will receive about enough for th<»

Tfu Tobacco World

ENJOY THIS WAY
OF INCREASING YOUR ENERGY

With the pleasure of Camel's distinctive flavor
comes an added benefit — an actual increase in
your flow of natural energy. That exhausted,
"dragged-out" feeling slips away... your "pep"
comes flooding back.

This discovery, confirmed by a famous New
York research laboratory, means that by smok-

"energizing effect" '"« *^»""'» !' " P*"""* W"°A,'^t iT °^

^ •* your natural energy — quickly — deligntrully —

and without jangling your nerves.

For no matter how often you choose to "get
a lift with a Camel," Camel's /«er, MORE EX-
PENSIVE TOBACCOS never get on your nerves!

Smoke a Camel —
and notice its

"Camela gire m*
■ refreshing 'lift'
in energy when
I feel tired out.
And they don't
interfere with my
nerref."

HELENE
MADISON

Olympic end
World'! Cham,
pion Swimmer

CAMELS

Costlier

Tobaccos
never get on

your Nerves

Camels are made from finer. MORE EXPENSIVE
TOBACCOS — Turkish and DomesUc — than any
other popular brand.

^'

'^e^j

with a Camel !

99

'^fs

"-t^/Z

Copyright, 1934, R. J. Beynolds Tobacco Tompany

J*tty 15. 1934

added production to pay them at a reasonable rate for
the extra work required.

The program is flexible enough so that adjust-
ments such as those indicated above can be made and
with these adjustments a marked increase in the in-
come of tobacco growers can be brought about without
any material loss in consimiption.

In order to reduce surplus stocks the Agricultural
Adjustment Administration found it necessan^ to ask
growers to reduce production below the level of con-
sumption. Tlie enonnous immediate task of doing this
has oversliadowed almost eventhing else during the
past year. But, as a matter of fact, we are a great deal
more interested in increasing consum])tion than in re-
ducing production. Every opportunity has been seized
to regain recently lost ex])ort trade. Some ])rogress
has been made in this iield and now, with the approval
of tariff legislation, vigorous efforts will be made for
further gains.

An attempt was made during the recent session of
Congress to obtain a reduction in tobacco taxes. We
are greatly concerned tliat the rates of internal revenue
taxes be such as to result in the largest possible domes-
tic consumi)tion and a healthy competitive situation
in the industrv. Our interest in tax rates is to be cer-

tain that the growers share in any reduction, and that
any changes adopted w^ill bring about a stable and per-
nument improvement in the growers' income.

Two proposals were widely discussed before the
Congress. One would entail a 40 per cent, horizontal
reduction in the tax rates on all tobacco products and
the other would reduce the tax rates on lO-cent cigar-
ettes on a percentage basis. The first would result in
some further immediate increase in consumption and
the second would improve the competitive situation in
the industry, both of which are desirable.

Since no legislation was enacted at the past session
of Congress, it is our hope that during the interim
between now and the next session this matter of tax
reduction will be widely discussed and thoroughly de-
bated. It is to the interest of the tobacco growers that
a tobacco tax system be worked out which will not per-
mit manufacturers to absorb all the profits made in
the industry. We hope that it will be possible to de-
velo]i a plan u]ion which all can unite that will insure
maximum benefit to tobacco growers and that will not
reduce the competition within the industry.

7 he forcfioing is a transcript, in part nf an address by J. B. Hut son.
Chief of J '^hacco Section, .h/ricultiiral Adjustnwnt Administration, before
larnters Meeting at Chatham, \'a., July ./, /y^./.

Code for Warehousemen and Growers

Effective July 9

OBACCO sold bv auction and loose-leaf ware-
houses is to be handled under a code of fair
competition that is designed to enable the in-
dustry to eliminate many trade practices con-
sidered detrimental to the best interests of warehouse-
men and growers. The Code, signed June 'M)\\\ by Pres-
ident Koosevelt, Secretary of Agriculture Wallace, and
XRA Administrator Hugli S. Johnson, became effective
as of July 9, 1934. l^abor provisions are under XRA
jurisdiction; other sections under AAA.

A basic maxinmm of 40 hours a week, 8 hours a
day, is set up, with certain employees ])ermitted to work
12 hours a day provided they are iiaid at least $25 a
week.

Minimum wages established are 22^ cents an hour
for unskilled conunon labor and $16 a week for clerical
employees. It is provided that no weekly wage shall
be reduced because of a reduction of working hours
under the Code requirements. The rate of 22V» cents
an hour represents a substantial increase over past
conditions.

Officials of the Tobacco Section of the Agricultural
Adjustment Administration, who assisted members of
the industry in drawing u]) tlu* Code, ])ointed out that
the Code is unique in that it provides for representation
of tobacco farmers on the Code authority, which will
administer the Code.

The Code provides for a producers' advisory com-
mittee of five members, whose chairman is a member of
the auction and loose-leaf tobacco warehouse industry
code authority which is set up under the Code. The
producers' advisory committee is designed to represent
the interests of tobacco growers and to act as spokes-
man, through its chairman, for the producers. The
chairman, however, is not entitled to vote as a member
of the authority.

Voting members of the Code autliority will number
eleven, ten of them elected by warehouse associations

10

in the various tobacco belts and one elected by members
of the industry who are not warehouse association
members.

The Code ])rovides for the slowing down of the rate
of sale of ungraded tobacco on the auction warehouse
floors to a maxinunn of 360 ])iles or baskets an hour.
The rate for tobacco graded in accordance with Cnited
States grades shall not exceed 375 piles or baskets an
hour. On some maikets tobacco heretofore has been
sold as fast as 4(M) piles or baskets an hour, and at
times it has even run as high as 450 sales. Farmers are
also allowed at least fifteen minutes after an auction
sale in which to reject a bid.

The Code further ])rovides that all tobacco offered
for sale shall be weighed by a licensed weighman and
that scales shall l>e tested daily during the marketing
season.

It provides that buyers shall \n\y for the tobacco
on the basis of weights at the time the tobacco is taken
from the warehouse floor rather than on the basis of
what it weighs after it has been trans|)orted to the
factorv.

The Code authority, with the approval of the Secre-
tary r)f Airriculture, will recommend tlie o])ening dates
for sales in each of the tobacco belts.

Safeguards against discrimination between grow-
ers has also been provided in the Code. Rebates of all
kind, direct or indirect, are definitely i)rohibited. No
wa?-ehousemen shall reserve space in his warelumse for
any j)eison other than a i)roducer or bomi fide dealer in
tobacco. The reservation of fioor space for truckers is
])i'ohil)ited.

In States where warehouse charges are not fixed
by law, eaeh tobacco warehouse association nuist sub-
mit to the Co«le authority a sehedule of fees and com-
missions to be ehaiged by all warehousemen in the
tobacco belt in which such association is located. Upon

Tk€ Tobacco World

M

an.

. mats

a

sensible package i

ALL you have to do is to use
JlIL a little common-sense, and
you'll understand that this
Granger package is the right
idea.

What you want in the pack-
age for tobacco is something
that will keep the tobacco right,
that is not too bulky or too
heavy, and that decreases in size
as you smoke the tobacco.

That's the Granger package,
a sensible package.

ran

/

ghCut

the pipe tobacco that's MILD
the pipe tohacco that's COOL

^^^Jolks seem to like if

I9M* Liocrrr * Mrtas To»acco Co.

J^h 15. '934

it

approval of the so( retary, such schedule of charges
shall be in effect dining the marketing year.

The Code iirovides that it shall be a condition of
every sale of tobacco at auction that the buyer of the
tobacco shall not l)e permitted to reject tobacco pur-
chased l)y him njion the grounds that such tobacco was
not of the character or in the condition which the buyer
believed it to be at tlie time of his ])urchase unless it
shall l)e ])roved that such tobacco was "nested," "shin-
gled," "false-packed" or damaged.

Each basket or container and each truck used in
weighing tobacco must be uniform in weight with a
maximum tolerance of one pound. When a basket or
container of tobacco is weighed, the exact weight to the
nearest even pound sludl be entered on the books of the
warehouse and on the basket ticket.

On markets where tobacco is sold in baskets belong-
ing to the warehousemen, the warehouseman shall
charge and collect from each buyer for the use of such
baskets a basket charge of 10 cents for each 1000
pounds of tobacco so sold.

Soliciting of tobacco by paid solicitors is forbid-
den. This does not apply, liowever, \o the warehouse-
men or other wareliouse employees who are actually en-
gaged in selling tobacco.

Warehousemen and their employes are forbidden
to speculate in tobacco sold on their floors, although a
warehouse is permitted to operate a loaf account to pro-
tect the sales on its floor. Warehousemen are forbidden
to offer a guarantee or a mininuim ])rice to a tobacco
producer as an inducenient for selling tol)acco on a par-
ticular floor.

Kerr-Smith Tobacco Act Passed;

Plans for Its Administration

KCHETAKY of Agriculture Henry A. Wallace
and Administrator Chester C. Davis have ap-
l)roved i)lans of the Agricultural Adjustment
Administration's tobacco section for adminis-
tration of the Kerr-Smith Tobacco Act. These plans
juovide for an ad valorem tax at the minimum rate of
25 per cent., the full tax exemi)tion of 6 per cent.
])ermitted under the Act to non-contracting growers
and regulations and instructions to field workers upon
whose recommendations allotments will be made to
non-contracting growers.

The tax of 25 per cent, of the market value will be
applicable on all tobacco produced this season by
growers who do* not receive tax-payment warrants
either under production adjustment contracts or by
allotments made to non-contracting producers except
Marvland tobacco, Virginia sun-cured and cigar-leaf.
Prior to March 1, 1935, it will be necessary to conduct
a referendum among the growers of the different types
of tobacco to determine whether they want the tax
applicable in 1935-36 to their type of tobacco.

In fixing the tax rate at the minimum allowable
under the law, the Administration took into considera-
tion the fact that the 1934 crop of tobacco was prac-
tically all planted when the Act was passed. If there
are any counties where it will not be possible to issue
tax-payment warrants to all growers who niight be
willing to conduct their farming operations in line with
the spirit of the production adjustment program, the
Administration said it felt these cases would be better
taken care of with the minimum tax than wnth a higher
rate. The Act authorizes a rate of 33 1/3 per cent, of
the market value unless the Secretary of Agriculture
determines and proclaims a lower rate.

**As we understand it,'' J. B. Hut son, chief of the
tobacco section, said, "the two primary purposes of the
Tobacco Act are to discourage the production of to-
bacco bv those who have not shared in the ])roduction
adjustment program and tu ecjualize insofar as pos-
sible, as l)etween contracting producers and non-con-
tracting growers, the advantages of the higher prices
resulting from the adjustment program. We bore

these purposes constantly in mind in working out the
l)lans for the administration of the Act.'*

The Act authorizes issuance to contracting
growers of the types to which the Act is applicable non-
transferable tax-payment warrants expressed in
pounds of tobacco and covering the amount of tobacco
which such conti'acting producers are permitted to
market under their contracts. In addition, the Secre-
tarv mav issue in anv count v further warrants covering
an amount of tobacco up to 6 per cent, of the amount of
such type covered by the warrants issued to contract-
ing producers in the county.

The regulations will permit allotments of tax-pay-
ment warrants in each county; up to approximately the
maximum of 6 per cent, specified in the Act. In a large
number of counties not enough growers will qualify to
pennit the issuance of warrants covering the full 6 per
cent. T'C

Growers whose j)roduction adjustment contracts
have been accepted or are accepted in the thirty-day
extension of the voluntary sign-up authorized under
the Act will be issued tax-payment warrants covering
their contracted poundage without the necessity of
making application for these warrants. All the infor
mation necessary for the issuance of these tax-payment
warrants is contained in the contracts. The thirty-day
extension of the sign-up campaign ends July 28, 19.34.

In order to secure an allotment, it will be necessary
for non-contracting growers to make application upon
forms to be provided by the Secretary. Application
forms for flue-cured tobacco growers went to press on
Julv 2d.

All applications for allotments must be recom-
mended by the county^ committee and approved by the
county agent before the Secretary will issue tax-pay-
ment warrants. These warrants will not be issued fo
any non-contracting grower unless it is impossible to
give him an equitable allotment under a tobacco pro-
duction adjustment contract.

Warrants covering at least two-thirds of th*»
amount of tobacco allotted to non-contracting grower^

Dealers everywhere say the
El Produeto policy of promot-
ing sizes has resulted in more
profits to their stores* Join
the winnerl

a ■. V. CICABCO.flMC.r HILA..FA.

EL PRODUaO

for real enioyment \ r\ cents

1^^ AND UP

I I

n

(Continued on Page 14)

J2

Tk€ Tobacco World

CIGARETTE EXPORTS NEARLY $5,000,000

EAF TOBACCO was the third most valuable
export product of the United States last year,
according to a study just completed by the
Chamber of Connnerce of the United States.
I'oreign sales of leaf tobacco amounted in value to
!H82,0ii4,OUU in 11)33 as compared with $64/J83,(X)0 in
1932. They constituted 5 per cent, of the total value
f United States exports last year.

Exports of American cigarettes even exceeded for-
. ign sales of wheat and of corn in value hist year, ac-
( (irding to this report. Exports of cigarettes were
valued at $4,895,000 in 1933 as compared with a value
1' $4,7()9,t)00 for wheat exports and a total of $2,(353,000
r corn exports.

One of the important factors accounting for the
\(»lume of foreign sales of cigarettes produced in this
(ountry is the world-wide recognition of their <iuality,
American ingenuity being responsible for many im-
provements in this product, such as the use of only the
mild center leaves of choice tobaccos, the introduction
r the toasting process and other modern nuinufactur-
iiig methods. Total production of cigarettes in the
Inited States last year exceeded 111,000,000,000.

"ON THE ROAD TO MANDALAY"

HE HUKMA GIRL a'settin' by the road to
Mandalay nowadays is likely to be smokin' of
an American cigarette instead of the whackin*
white cheroot which Kipling wrote about in his
famous poem, for American cigarettes are popular in

J^h '5, '934

<H

the Orient. Figures recently made i)ublic by the De-
partment of Commerce show that the Philippine
Islands bought more American cigarettes last year
than did any other export outlet, purchasing more than
a billion cigarettes produced in the United States.
China, The Netherland East Indies and other Oriental
lands were also among the leading exijort markets.

Reasons for the popularity of the American ciga-
rette include their high quality and their mildness as
the result of such practices as the use of only the center
leaves of choice tobaccos and the adoption of such mod-
ern manufacturing methods as the toasting process.
Long before American women were reaching for ciga-
rettes the women of the Orient enjoyed their cheroots,
which are now being replaced by the more convenient
and milder short smoke.

(>

GIRARD SPORTS BROADCAST

Richards Vidmer, veteran sports reporter, is con-
ducting a radio sports column over WABC daily ex-
cept Monday from 6:45 to 7 P. M. (E. D. S. T.). The
presentations are sponsored by Webster-Eisenlohr,
Inc., makers of Girard cigars.

A^idmer, in addition to his keen observation and
ability to recount what he sees on the tennis courts,
football fields and baseball diamonds, excels in many of
the activities he describes. As a student at George
Washington Universitv he played on the football team
and later coached St. John's College, Washington. He
has been on the New York Ilerald-Trihuur s])orts stall
since 1927, and prior to that served with the Xnv York
Times and the Morning Telegraph.

'3

KERR-SMITH TOBACCO ACT PASSED

(Continued from page 12)

in each count v will bo issued to "rowers whose allot-
inents are not more than 1500 jwnnds. At least one-
half of this two-thirds nuist be allotted to growers
whose estimated production in 1934 is not moi-e tlian
1500 ponnds.

Prior to the oi)eninn' of the markets marketiiiij,-
cards will be issued to all contract inii producers and to
all non-contractini): growers for wlioin a])])lications for

tax-payment warrants have been aj)proved. The
amount of tax-exem])t tobacco which each grower will
be allowed to sell will be stated on his marketing carj..
The grower will be reipiired to ])resent this markc t-
ing card at the warehouse in order to obtain the tax-
])ayment wariant. When a sale is made, the nund)er of
pounds sold will be entered on the marketing card cor-
res])onding to tlie entry on the tax-])ayment warrant.
These figures, representing the tobacco sold, will be
subtracted on the marketing card from the quantity
allotted and the remainder will rej)resent the allotment
vet to be sold.

"Weed" Rotation Helps Tobacco

One Year of Tobacco to Two of "Weeds"

K DINAR V weeds in a croj) rotation have given
exceptional (piality to anothe.- ''weed," to-
bacco. In growing tobacco, it sliould be remem-
bered, "(piality" and not (luantity is the hard
thing for the toV)acco farmer to get. On exi)erimental
plots maintained by the Maryland Agricultural Exjieri-
ment Station and the U. S. Department of Agriculture
near Upper Marlboro, Md., in a three-year rotation,
one year of tobacco and two years of weeds, tobacco of
such quality has been grown that its average market
value each year has been 31 cents a iK)und or $380 an
acre over an eleven-year period. Tlie yield, too, has
been good — 1227 i)oun(ls an acre. Crops grown under
this rotation have been harvested every year during
this time.

Quality, differing for ditferent types of tol)acco,
means chieHv in the case of this soutliern Marvhmd to-
bacco, good combustibility, mildness and light weight
per unit of volume. It is a rather liglit-colored, air-
cured tyi)e, used jjrimarily in cigarette bh'uds and also
exported. Some of this export tijuh* began 300 years
ago and ])roduction on these soils has continued for
ajiproximately that many years.

In a two-vear rotation, a vear of to])acco and a
year of weeds, the croj) had an average market value of
$374 an acre, with an average yield of 1 1S7 pounds. In-
dications are that the advantage of the three-year over
the two-vear rotation will increase as the tests are con-
tinned. In some cases where land is scarce, the two-
vear rotation might l)e the more desirable.

The chief value of the weed fa How in producing
this quality tobacco a})i)ears to be that it causes the
]jlants to make a quick start and maintain a rai)id and
uniform growth until maturity. That its virtue lies
mainly in the weed croj) is shown l)y much ])oorer re-
sults on plots where the weeds are kept dov.ii by hoeing
during the rest j^eriod. On tlu' weed rotation plots the
ground is not disturbed during tlie idl-' years.

Among the weeds which seem to give the most (]ual-
itv to this tobacco are connnon ragweed and horseweed
or (^anada fleabane. It is pro))able, according to D. E.
Brown and J. Vj. McMurtrey, Ji., of the Bureau of
Plant Industry, who are conducting I he experiments,
that rotating weeds with tobacco can be equally success-
ful in most other tobacco areas, even though the soils
and the quality of tobacco sought may ditfer from that
of southern Marvland.

H

Those results are of especial importance at the
present time in connection with the problem of keeping
tobacco ])roduction within bounds and reducing the pro-
portion of low-giade leaf.

Considering both yield and quality of tobacco, the
only other cropj)ing system which a]jproaclied the weed
fallow is a three-year rotation with wheat and red
clover, which during an eight-year period had an aver-
age yield of 11 7t) })ounds an acre, but, because of poor
(pudity, an average value of only 23 cents a pound or
$2()2 an acre. This fairly good showing may be due to
the fact that after cutting the clover hav earlv the sec-
ond year, the clover has been largely replaced by weeds.

The tests were begun in 1912 to find rotations of
cultivated crops which would give * Equality" to tobacco.
It was grown continuously without a cover crop, and
with rye, crimson clover and hairy vetch as cover crops.
It was grown in two-year rotations, with wheat fol-
lowed by crimson clover or cowjieas, and finally in the
three-vear rotation with wheat and red clover. A uni-
form fertilizer was used on the tobacco cro]) alone.

When legumes were used and fertilizer omitted,
there was a rapid decline in both yield and (piality of
tobacco. A fair vield of tobacco has been maintained

»

with fertilizer and no cover crop, but both yield and
quality declined in later years. Hairy vetch has been
sujierior to crimson clover as a cover crop, but it and
cowjieas pioduce a poor (pnility of tobacco leaf. Dou-
bling the i)()tash in the fertilizer improves quality and in
some cases increases yield.

Apparently legumes in the croi)i)ing system, be-
sides directly lowering the quality of tobacco, indirectly
favor development of black root rot, which retards
growth. This was especially true in ihe cowpea rota-
tion, notation with weeds also can be reconmiended as
one means of controlling root knot, prevalent in the
Carolinas and Georgia, but not in Maryland, where the
climate is too cold.

Sponsors of these experiments i)oint out, however,
that when combined with ])ro])er fertilization and not
employed too fre(piently or too jjersistently, legumes
may be used to advantage in the cropping system for
tobacco in southern Maryland, especially on the poorer
soils, known to be free from root disease.

Tht Tobacco WorU

W. T. CLARK ELECTED HEAD OF TOBACCO
ASSOCIATION OF U. S.

HE thirty-fourth annual convention of the
Tobacco Association of the Ihiited States was
held at White Suli)hur Si)rings, W. Va.. m\
July Oth. Increased interest in the affairs ()f
ihe association was indicated by the attendance, which
was the largest in numy years. Col. A. B. ('arrington,
of Danville, Va., who had been president of the asso-
ciation for nine consecutive years, was unal)le to at-
tend the meeting on account of illness, and his annual
nchlress was read by Henry Ilotchkiss, of Kichmond,

Va.

A letter from Col. T. M. Harrington, chairman
of the board of directors, and former president of the
association, was read asking that he ))e relieved from
the chairnumship. Upon motion duly made and car-
ried, the ofiice of chairnum of the board was abolished.
J. V. Lanier, of the A. A. A., Washington, D. (J.,
l)riefiy addressed the meeting on sui)jects pertinent to
the association activities, and he was followed by D. I).
Hill, chief of the Tobacco Division, United States De-
|)artment of Commerce, Washington, D. C., who de-
livered a short address on the workings of his dejjart-
iiient. Mr. Hill then introduced Mr. Granville Wood-
ward, Connnercial Agent at New York City of the
Department of Connnerce, and Consultant on Chinese
Affairs, and Mr. Woodward spoke on the subject of
export tobacco to China.

Wm. Holmes Davis, president of the Virginia For-
warding Cori)orati()n, Norfolk, Va., then addressed the
meeting on the subject of Tke Virginia rorts and the
Export Tobacco Trade.

The Nominating Connnittee then made their re-
port and j)laced the following names before the meet-
ing for consideration for officers for the ensuing year:
\V. T. Clark, president; K. J. O'Brien, first vice-presi-
dent: F. N. Harrison, second vice-president; J. S.
Kieklen, third vice-president, and they were duly
elected.

E. A. Brown, of the Tobacco Exchange, New York
Citv, then addressed the meeting and ex])lained the
workings of the P'iXchange and its many advantages
to the industry.

H. J. Barker, president of the American Steam-
ship Owners' Association, New York City, then ad-
dressed the meeting on the subject of Ships Held Vital
to Tobacco Industry.

Following this achlress the Marketing (Nnnmittee
uave its report and the following dates were agreed
upon for the opening of tobacco markets in the various
belts:

(leorgia Markets August 1st

South Caicdina August !Mh

Eastern North Carolina. .August 'IM

Middle Belt September VM\\

Old Belt September 2:>th

Dark Fired Novend)er 7th

Kentucky, Tennessee, Burley and Dark Markets
to determinetheir own opening dates, to be ann<Mineed

later.

The meeting was eompleted by the annual ban«piet
held in the evening, with Dr. John Dickinson, of the
Cnited States Department of Connnerce, Washingtcm,
I). (\, the jirincipal s|)eaker of the occasion.

The next annual meeting of the assoeiation is
seheduled to be held in February, 11»35.

July IS, 1934

NOTICE OF OPPORTUNITY TO BE HEARD

Cigar Container Industry

(Uniform Method of Cost Inclusion and Application)

The Cigar Container Industry, through the Code
Authority, has made application to the Administrator
for approval of a uniform method of cost inclusion
and api)licati()n for the mendjers of the industry.

The ITniform Method of Cost Inclusion and Ap-
plication proposed in such application is available at
the office of Deputy Administrator A. C. Dixon, 9U7
Sixteenth Street, N. W., Washington, D. C, and at
the office of the Code Authoritv for the Cigar Con-
tainer Industry, 1G20 South Forty-ninth Street, Phila-
delphia, Pa.

Notice is hereby given that any critici' ms of, ob-
jections to or suggestions concerning said Uniform
Method of Cost Inclusion and Aijplication must be
submitted to Deputy Administrator A. C. Dixon, 9U7
Sixteenth Street, N. W'., Washington, D. C, prior to
Monday, July 23, 1934, and that the Administrator
may approve said Uniform Method of Cost Inclusion
and Application in its present form and/or in such
form, substance, wording and/or scope as it may be
revised on the basis of criticisms, objections or sug-
gestions subndtted and supporting facts received pur-
suant to this notice, or other considerations properly
before the Administrator.

Any person submitting any such criticism, objec-
tion or* suggestion must state his name, the persons
or groups whom he represents, and the facts support-
ing his objections, criticism or suggestion. All matters
submitted will be given due consideration and the Ad-
ministrator will act after consulting with such of his
advisors as he may deem appropriate.

Hugh S. Johnson,

AihHini.strator for Na-
tioual Recovery.

A. C. Dixon,

Deputy Administrator.

^^, B.— Attention is called to an error in the ad-
dress of the office for the Cigar Container Code Au-
thoritv in Philadelphia, Pa., which is at 236 Chestnut
Street, where a copy of the Uniform Method of Cost
• Inclusion and Application is on file.

YORK COUNTY FACTORIES CLOSE

Following the api)roval and etfective date of the
Cigar Manufacturing Code, many hand-cigar factories
in V<»rk County have closed for an indefinite period,
alTecting several thousand employees.

It is underst<»od that the factories were closed
pending an interpretation of the Code by the Code
Authoritv.

.lune cigar ])roduction in York County was re-

liorted as follows:

June, 19.34 .lune, 1933

Class A 112,821,010 109,981,870

Class B 237,000 274,930

Cla.ss C 11,252,912 10,278,338

NEW CIGAR FACTORY AT MANCHESTER, CONN.

Edward Trend)lav and William Taft have or-
«ranized the Trend)lay and Taft C^gar Company, and
will operate a factory at U.') North Main Street, ^Ian-
ehester, (/onn., manufacturing the New Flash cigar
to ri'tail at live cents. Other brands w^ill be added to
the factory as conditions warrant.

,4

Foreign Tobacco Markets

China — There lias been no marked improvement
in the American leaf tobacco situation in Shanghai,
but local stocks are kno^^^l to be moderate and demand
domestically in the United States, as well as in Europe,
is such that the American supply is reported as mov-
ing into consumption at a satisfactory rate and at
fancy prices. The price of China grown leaf has
dropped about 10 per cent, and toward the end of
April silver exchange began to weaken, a further ad-
verse factor for American leaf.

HAMBUPiG — The Hamburg tobacco market in May,
1934, was quiet though registering an improvement
o\'er the previous month. As reported by American
Vice Consul A. W. Steyne, and made public by the
Tobacco Division, Department of Commerce, the for-
eign exchange situation is causing acute anxiety in
the trade and future business has been rendered very
difficult. The Hamburg trade is very much concerned
about their future existence. The present regulations
render the former profitable transit business extremely
difficult and the prospects for the inunediate future
do not appear favorable.

Germany — The outstanding event in the German
tobacco industry during April was the formation of
a conditional cigarette cartel under the supervision of
the Reich Ministry of Economics, to be known as the
Wirtschaftliche Vereinigung der Zigaret-tenindustrie
(Economic Association of the Cigarette Industry).

American Vice Consul A. N. Stevne in a review
of the present situation, as made public by the Tobacco
Division, Department of Commerce, states that severe
competition, rising advertising costs, high taxation
and the consumer switch to the lowest priced varieties
had raised havoc with the industry. Voluntary regu-
latory measures having failed, as several large pro-
ducers refused to adhere to the agreement, the gov-
ernment stepped in and forced the recalcitrant groups
to co-operate.

Tobacco Trade of Taiwan — The external trade of
Taiwan (Formosa), that is, trade with Japan proper
and foreign countries, held up very well during 1933,
showing an increase in all imports of about 7 per cent,
over 1932. Both imports from and exports to the
United States improved. Leaf tobacco from the
United States increased from 236,788 pounds in 1932
to 520,166 pounds. During 1933, hnports of cigarettes
from Japan proper and foreign countries totaled
898,61(),()00 as against 1932 imports of 833,083,000.
(American Consul John B. Ketchara.)

Sales of Tobacco in Czechoslovakia — In April,
1934, sales of tobacco products in Czechoslovakia
totaled 829,000,000 cigarettes; 12,500,000 cigars; 92,620
pounds of cigarette tobacco; 1,307,328 pounds of pipe
tobacco and 8598 pounds of snuff. March sales totaled
932,000,000 cigarettes ; 14,000,000 cigars ; 103,616
pounds of cigarette tobacco; 1,483,696 pounds of pipe
tobacco and 10,251 pounds of snuff. Comparing Ai)ril
with March, the decrease in cigarette sales of cigars
and cigarette smoking tobacco was approximately 11
per cent., pipe tobacco 12 per cent, and snuff 16 per
cent. During 1933, tobacco products valued at 2,172,-
957,820 crowTis w^ere consumed, the per capita being
145.97 crowns, or about $6. (American Commercial
Attache Sam E. Woods.)

Xyasaland's External Tobacco Trade — During
1933 the volume of tobacco exports from Nyasaland

i6

was substantially lower than the average annual trade
during the past five years and since tobacco usually
accounts for the largest part of the value of Nyasa-
land's exports, the influence on the economic position
of the Protectorate w^as noticeable. Tobacco produc-
tion, especially the native-grown fire-cured types, was
restricted, consequently the purchasing power of the
large native population was materially reduced. The
])resent tobacco crop is reported to be satisfactory in
both quality and quantity. (American Commercial
Attache Edward B. Lawson.)

Consumption of Tobacco in Canada — According
to un revised figures made public by the Canadian De-
partment of National Kevenue, tobacco j^roducts aiid
foreign leaf tobacco entered for consumption during
the month of May, 1934, consisted of cut tobacco,
1,731,922 pounds; plug tobacco, 415,972 pounds; snuff,
74,322 pounds; cigarettes, 431,667,650 pieces; over-
weight cigarettes, 14,600 pieces; cigars, 10,325,277
l)ieces, and foreign raw leaf tobacco, 869,923 pounds.
Adding May entries for consumption to those issued
monthly since the beginning of the year, brings the
totals entered for consumption during the first live
months of 1934 to the following figures: cut tobacco,
7,255,023 pounds; plug tobacco, 1,723,455 pounds;
snuff, 307,733; cigarettes, 1,685,589,040 pieces;
overweight cigarettes, 89,700; cigars, 35,300,228, and
foreign raw leaf tobacco, 3,570,104 pounds. During
May, foreign raw leaf tobacco ex warehoused for duty
totaled 869,925 pounds, leaving a balance in warehouse
at the end of the month amounting to 4,586,232 pour^ds.
During May, excise taxes were paid on 6,912,762
cigars. (American Assistant Commercial Attache 0.
B. North.)

Cigarette Imports I'kohibited by Honduras — De-
cree No. 10 of the Honduran cabinet, dated June 8,
1934, a measure intended to protect the Honduras
cigarette industry, prohibits the importation of for-
eign cigarettes after August 1, 1934. (American Vice
Consul R. Austin Acly.) The cigarette trade of the
United States with Honduras has sliown a downward
trend in recent years, decreasing from 3,300,000, valued
at $9028 in 1929, to 1,02(),000, valued at $2500 in 1933.
Shipments in 1930 totaled 2,550,000 valued at $688(;.
The 1931 total was 1,981,000,' valued at $5285, and
the 1932 total 1,068,000, valued at $2859. (Ed.)

Cuban Tobacco Consumption — Figures recently
released by the Comision Nacional dc Propaganda y
Defensa del Tabaco Habano, shows that in Fe})ruary,
1934, the number of cigars consumed in Cuba totalecl
4,220,525 as compared with 5,245,650 in February,
1933. In tlie same month of this year, 16,520,190 j)a(k-
agos (if cigarettes were consumed in this country a^
against 13,719,478 packages in the corresponding
inontii of 1933. The consumption of smoking tobacco
totaled 18,652 pounds in February, 1934, and 15,110
pounds in February, 1933. (American Commercial
Attache W. J. Donnelly.)

Bolivian Cigaretti: Factories — The two new
plants operating in the ])roduction of cigarettes in La
I'az, Bolivia, have considerably developed their busi-
ness but have been hampered by taxes of all classes
which have greatly restricted their profits. It ha-
been estimated that 60 per cent, of the sales price ot
cigarettes is devoted to the payment of internal reve-
nue taxes, stamp charges, import duties on tobacco,

Thf Tobacco World

MANNY PEREZ TELLS 'EM

ANUEL L. (iMANNY) PEREZ, of Marcelino
Perez and Co., Tampa, Florida, electrified the
members of the Philadelphia Retail Tobacco
Dealers Association with an address on the
necessity of organization, at a meeting in the Hotel
Adelphia on July 10th. He reviewed the long and
arduous labors unstintedly and unseliishly performed
by the manufacturers, wholesalers and the less-orgtin-
ized retailers headed by Bill Hollingsworth, in obtain-
ing the approval of the tobacco codes, and said that the
jctailers must be much better organized than they are
al present, since they must protect their brancli of the
industry against chiseling and other violations of the
code provisions by doing their own policing, instead of
reiving on the numufacturers and wholesalers for this
important work.

Other addresses were made by D. Eisman, of the
Arrow and Stanley companies; Nelson Eberbach, of
A. B. Cunningham & Co. and representative of the
National Association of Tobacco Distributors; Max
P>ernfield, charter vice-president of the Retail Tobacco
Dealers of America, Inc.; John Matchett, of Yahn k
McDonnell; George Jones, treasurer of the local or-
ganization; and, of course, Harry A. Tint, president,
who conducted the meeting.

President Tint ai)pointed each of the following
members as a "territorial committee of one" to inter-
est other retailers in his neighborhood in the aims and
purposes of the association and to enlist these neigh-
boring dealers as members for the city-wide execution
of those purposes : AL J. Goldberg, Sam Spivak, Louis
J. Bard and Irving Lul)ar. They will be assisted in
this work by the secretary of the association, Sara
Greenwald, whose energy and enthusiasm served
greatly to enliven the meeting.

ORNBURN ON THREE TOBACCO CODE
AUTHORITIES

RA M. ORXHrHX, ])re>ident of the Cigar
Makers International Union, has been ap-
pointed to the code authorities for the three
tobacco codes so far approved, it was an-
nounced todav. He will serve as administration mem-
ber of the code authorities for the wholesale tobacco
trade and the retail tobacco trade, and as Labor Ad-
visory Board member of the cigar manufacturing in-
(lustrv code authority.

Mrs. Charles S. Brown, Jr., will also serve as
administration member of the code authority for the
wbolesale tobacco trade. Mrs. Brown is the daughter
(»f \Vm. J. Schieffelin, jaesident of the Citizens Com-
mittee of New York, and has been president of the
National Junior League.

LORILLARD CHANGES DISTRICT MANAGERS

A. ]\*. Rhodes, who lias been with the P. Lorillard
( ompanv for nineteen years, has been transferred
from the AVest Texas division to Little Rock, Ark.,
where he will Ik* manager of the Arkansas Division.
Mr. Rhodes had ))een in cbarge of the Little Rock
territory from \\ri\ until IDli.'i, when he was sent to
Texas.

Julep cigarettes, distributed here by Yahn & Mc-
I)(mnell Cigars, met with a jjleasing reception, whicli
has continued, and which necessitated a prompt re
order on this brand. The brand is mint cooled and is
being placed only in the high-grade outlets which main-
tain the retail price at 15 cents for twenty cigarettes.

Just Enough Menthol to Cool and

Soothe Without Destroying

The Natural Tobacco Flavor

.±. — ^iM^HP

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERaiANTS ASSOCIATION <^f9i^
OF UNITED STATES ^Sif^P^

JESSE A. BLOCH. Wheeling. W. Va ; v " * * d*^"-^*"!

JULIUS LICHTENSTEIN, New York. N. Y ^... • yicc-President

WILLIAM BEST. New York. N. Y Chairman Executive Coraraittee

MAJ. (.EOKGE VV. HILL. New York. N. Y Vice-President

GEORGE H. HUM M ELL. New York. N. Y V.ce-President

H. n. SH ELTON. Washington. D. C X-"'?'"'!^^n!

WILLIAM T. REED. Richmond. Va v!^!"pr^' £

HARVEY L. HIRST. Philadelphia. Pa Vice-President

ASA LEMLEIN. New York. N. Y •■ •/•••yv,- •••^•*'"I*I

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director

Headquarters. 341 Madison Ave., New York City

RETAIL TOBACCO DEALERS OF AMERICA. INC.

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y ....President

CLIFFORD N. DAWSON. Buffalo. N. Y Executive Vice-President

JAMES C. THOMPSON. Chicago, 111 Ireasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City fI;:;' vi;;'?r«ldelll

MILTON RANCK. Lancaster. Pa -First Vice-Pres dent

D. EMIL KLEIN. New York City ^"l^^-Jor^TrelsurSj

LEE SAMUELS. New York City Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave., Newark, N. J F-'Tvvl'Prt^iJ^n!

ALBERT FREEMAN. New York. N. Y --First Vice-President

flTvEN M. MOSS. Trenton. N. J Second Vice-President

A. STERNBERG. Newark. N. J secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

SAMUEL MAg\d^Si 'N.Mervin^^

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E. ASBURY DAVIS. Baltimore. Md. -•••••■• ••■•^•- ,> witwy

JOSEPH KOLODNY. 200 Fifth Ave.. New York. N. Y T^eHuiir

GEO. B. SCRAMBLING, Cleveland, Ohio Ireasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

{?ERM AN®H.*^YAfe.' m Fox Buiid^

17

Established 1886

"BEST OF THE BEST

»f

^^^^^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep Wtat. Florida

OUE HIGH-GRADE NON-EVAPORATINO

CIGAR FLAVORS

Make tobacco melCow and smooth In character
and Impart a most palatable flavor

rUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BITUN. ABOMATIZEK. BOX PLAVOBS. PASTE SWEETENERS

FRIES Sl BRO., 92 Reade Street. New York

Classified Column

The rate foi this column it three centi (3c.) a word, with
a minimum charge of seventy-five centi (75c.) payable
•trictly in advance.

iryaviri^r/it'.yiivirygviryitirisviya^rraxirrftxir/^^^^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580. "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEX A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while line.
Hugh Donowick, 242 Milnor .\ve.. Lackawanna, .\. V.

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

BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last PuflF,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, ^Ew^ioRrcm

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

Eegistration,

Search,

Transfer,

Duplicate Certificate,

(see Note A),
(see Note B),

$5.00
1.00
2.00
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.

ANNOUNCEMENT TO RETAILERS

HE National Code Aiithoritv for Retail To-

ft

bacco Trade makes lirst iiii})ortant official an-
nouncement. Dealers are requested to j-ead
this carefully to avoid possible violation of
new Code. "Tlie Retail Tobacco Trade's Code of
Fair Com])etition, ajiproved by President Roosevelt
on June IDtli, contjiins, among" other thin<j:s, provisions
requiring action by tobacco retailers within specified
times.

"Any retail merchant in the I'nited States whose
princi])al line of business is the sale of tol)acco prod-
ucts must elect l)efore July 16, 1934, to oj)erate upon
certain schedules of store hours and hours of labor
and is reipiired to post a copy of such election in his
store.

** Every such retail merchant must also ])ost in
his establishment comph'te copies of the code provi-
sions covering hours, wages and conditions of employ-
ment.

**For com])lete information U])on how to comply
with the articles mentioned above, communicate at
once with Retail Tobacco Trade National Code Au-
th<Mity, 72(1 Jackson Place, Washington, D. C.*'

$11,751,982 TO FARMERS

EXTAL and benetit payments amounting to
$ll,7r)l,{)82 had been sent out to tobacco farm-
ers to June 2l)th, and $!(>,( ><)(),()( K! in tobacco
processing ta.xes had been collected to June 1,
according to a lecent a.nnouncement from the AgrirMil-
tural Adjustment Administration. l*ayments to grow-
«'is by States (not including administrative costs of pro-
<luction control associations) are as follows;

Alabama, $12.3f>: Connecticut, $2in,r)73; Florida,
^^178,092; (ieorgia, i|;l,3()7,Hll : Illinois, $2';7; Indiana,
$38,707; Kentucky, $l,()rj(),4()2; Maryland, $27,178;
Massachusetts, $1(14,924; Minnesota, $2.Vi99 : Missouri,
$5008; New Hampshire, $2383; New York, $2(i.237;
North Carolina, $4,79l,(K)7; Ohio, $.3:)!),:)08 ; i»ennsyl-
vania, $500,940; South Carolina, $l,4r)4,7()0; Tennessee,
$80,(;4(i; Vermont, $2833; Virginia, $489,283; West Vir-
ginia, $30,134; Wi.sconsin, $458,285.

CONSOLIDATED PREFERRED DIVIDEND

At a meeting of the Board of Directors of ihe
Consolidated Cigar Corporation, a dividend of $1.75
jier share on the |>referred stock of the Corporation
was declared payable Sej)tember 1 to stockholders of
record at the close of business August" 15.

AUGUST 1, 1934

Jt - . ' V K D

MM

i

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

zJ

Phila., Pa.
Hanover, Pa.
Cincinnati, Ohio

York Pa

AUTOKRAFT BOX CORPORATION Chicago, lii.

LIMA OHIO Detroit, Mich.

A NatioixWide Service Wheeling, W. Va.

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA.

n

IP

After all
"nothing satisfies li
a good cigar

like

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember that Rcgjrdlcu of Price

THE BEST CIGARS

ARE PACXCD l^

WOODEN BOXES

THE TOBACCO WORLD

Vol 54

AUGUST 1. 1934

No. 15

IIOSIO aiioinalous croakers of tlio oi.uar indus-
try who have been i)redietiii«;- tliat the steady,
iiionth-hy-inoiith inereases in ei^ar consump-
tion simply eoukl not hist, are getting' their
wish fulfilled in the June figures, just released. There
was a decrease of nearly eleven million cigars, or more
than 2M> por cent., for the month, in comparison with
June of last year. Let the seat-polishing calamity
howlers gloat over that fact. For ourselves, we i)refer
to look into the rejjort before we decide that the })ottom
has again droj)ped out of the cigar business.

Cj3 Ct3 Cj3

X THK first place, when we compare June,
IJI.'U, with June, ID.T^, we are comi)aring a
relatively iioor month this year with an ex-
ceptional month of last year. Vou remend)er
how rare a gain was in WKVA. Well, last June showed
a gain of more than fourteen million cigars, or ap-
jnoximately .'? 1 .*5 per cent. Hut don't h)se sight of
the fact that that net gain of fourteen million was
made i)ossible by a gain of thirty-six million (10%
l)er cent.) in Class A and a gain of sixty-oiu* thousjuid
in Class K, the losses in the other classes aggregating
more than twenty-two million.

Cj3 Cj3 Cj]

LT, what k more important, that gain last
year was an oasis in a desert of losses. The
VJXl fiscal year ended with a total loss for all
classes of more than <)<>() million cigars (nearly
13 per cent.). Kvery class last year showed a loss^
A— 142 million {'^ 2 :*{ per cent.) ; H— thirty-two million
(45 per cent.); C — 4H2 million (41 per cent.); D —
twenty-one million ('M) per cent.) ; K— four million (43
per cent.).

Xow contrast those figures with this year's. With-
tlrawals for June, 1!>:U, recorded a gain of two million
(82 jier cent.) for Class B, and the losses were fairly
evenly divided among the other classes: A — nine mil-
lion (2.4 ])er cent.); C— four million (7.2 i)er cent.);
I)_1(K; thousand (2.S per cent.); K— eight thousand

(2% per cent.).

Finally, contrast the figures for the two fiscal
vcars. Instead of a loss of (iOO million, there is a gain
!)f more than 21M) million, .")()() thousand, a gain of ^.48
per cent, as o]>posed to a loss of 12.48 per cent. You
ran't >neeze that away with the inconsiderable loss of
the one month of June.

We're also going to allow our doughnut -hole
statisticians to extract what sadistic pleasure they may
out of the fact that cigars were not alone in losses for

June. All tobacco i)i'oducts wei-e behind for the single
month, including cigarettes. Cigarettes showed a de-
crease of nearly 418 million (.'i.^'j ])er cent.). But,
oh boy, look at those cigarettes foi* the fiscal year — a
gain of more than seven billion {CySA per cent.) on
the luu'ls of last year's gain of three and one-half
billion (,'^.28 per cent.).

Vou can't get away from it, gentlemen. The
American j)ublic is fond of tobacco and is growing
fonder of it each year. Thar's gold in that thar leaf.

CJ3 Ct) tf3

VH worst troubles never happen. The things
we worry most about in advance never come
off as we feared. The latest illustration of
this old truth to come to our notice was the
docile manner in which the public reacted to the mini-
nuun price regulations on cigarettes. We have made
it a point to hang around cigar stores since the NRA
ordei" went into effect, to notice how smokers took to
(Jeneral Johnson's edict that they nmst ])ay at least
thirteen cents, or two for a (juarter, for standard brand
cigarettes. As far as our observation went, and we.
took our mental notes in all kinds of stores, including
the cut rates, smokers sim])ly bought and paid for
their cigarettes without making any mention at all,
or with only a casual mention, of the extra one two
cents for the single package, or the extra one to four
cents for two packages. We can probably credit some
of that inditTerence to the activities of the active press
bureau of XHA in releasing the news of the mininunn
price regulation in advance, and the connnon sense of
tobacconists in discussing the fact with their customers
for the several days before the ruling became etTective.
But most of the explanation lies in the general willing-
ness of the pul)lic to i)ay the ])rice for what they want.
If, without great inconvenience, they can get the same
(puility for a lesser price, it is human nature for them
to buy at that price, regardless of whether the seller
is making money on the transaction or not. That's
the seller's business. And regardless of whether the
cut-price num is inflicting a hardship on a nuin in the
same line of business selling at a legitinuite profit.
If the buyer (h)es any thinking about that at all, he
concludes that that is really the legitinuite merchant's
business. It is up to him to see that such chiseling
practices are not permitted in his line of trade. And
that, gentlemen, is the reason for tiade associations.
That is the reason, for instance, why every retail
tobacconist should be a member of his local organiza-
tion, and thus become affiliated with the national as-
sociation, which is fighting his battles for a legitinuite
profit in his business.

Apropos of that, the Western Tobacco Journal
recently did us the honor of reprinting one of our
editoriiil paragiaphs, in which we conunented on the

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B Hank.ns, Secretary. Office, 236 Chestnut Street. Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
ible only tfthose engaged in the tobaico industry. $2,00 a year, 20 cents a copy; foreign. $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

lack of co-operation ainoiii*' retail tobacconists, as evi-
tleiiced at a iiiectiii.u we attended. Under the heading
"Pitiful? Yes!" our Buckeye confrere repeated our
paraura])!!, and then went on: ''Officers of the Cin-
cinnati Association of Retail Tobacconists shouUl en-
joy this little article, as it lits exactly in line with
their exi)eriences. They have worketl hard to accom-

plish must good for the local retail stores. The re-
tailers— not all of them — but numy have howled ter-
ribly account of having to sjjend a few dollars for
membershii) to the association, some even reaping the
benefits and not even belonging to the association.
Tliev also believe in the old motto referred to above:
* Let* George Do It.' "

Musings of a Cigar Store Indian

By Chief "Young-Man-Smoke-Cigars"

Cigarette, Snuff, Chewing & Smoking Code

lllLE o])erating under a modified P. R. A. from
tlu' very incejjtion of the i*residential agree-
ment, cigarette, snutf, chewing and smoking to-
bacco manufacturers, conservatively estimated
to re|)resent over !>.') ]>or cent, of the out])ut of these
products in the I'nited States, met at the Hotel Hilt-
mori'. Xew York City, on Wednesday, July 18th, and
unaniniouslv adopted a code for submission to the
XRA.

The meeting, having been called by S. Clay Wil-
liams, chairman of the Cigarette and Tobacco Manu-
facturers Code Conunittee, was presided over by Mr.
AVilliams, who on V>ehalf of the Code Conunittee recom-
mended the adoi)tion and submission of a Code for the
cigarette and tol)acco nuuiufacturers.

The Code was finally adopted by a unanimous vote,
and has been submitted by Chairman Williams to the
NRA for consideration and action thereon.

A list of numufaclurers represented at the meeting
is enclosed.

The Code Conunittee consists of: 8. Clay Williams,
chairman; W. F. Axton, Jesse A. Bloch, H. L. Brow^n,
Esq., T. F. Flanagan, W. W. Flowers, George W. Hill,
Everett Meyer, William T. Keed, H. M. Robertson, Esq.

The following nuuiufacturers were represented at
the meeting:

American Snuff Co., Memphis, Tenn. — M. E.
Finch, secretary and treasurer; Martin J. Condon,
president.

The American Tobacco To., Ill Fifth Avenue, New
York, X. v.— George W. Uill, president; C. F. Neiley,
vice-president.

Axton-Fisher Tobacco Co., VXM) Maple Street,
Louisville, Ky. — W. F. Axton, jiresidcnt; E. J. Helck,
vice-juesident.

Bendixen Tobacco Co., 41 (I Liberty Street, Syra-
cuse, X. Y. — R. H. Bendixen, jiresident; Harold Reis-
inger.

Benson 6c Hedges, Inc., 435 Fifth Avenue, New
York, X. Y. — James J. Head, president.

Bloch Bros. Tobacco Co., Fortieth and Waaler
Streets, Wheeling, \V. Va. — Jesse A. Bloch, vice-presi-
dent ; W. J. Frankston, Harold Bloch (Xew York office).

F. M. Bohannon, Tobacco Mfr. Inc., 514 Depot
Street, Winston-Salem, X. C. — J. C. Trotman, presi-
dent.

Brown cV: Williamson Tobacco Corp., IGOO West
Hill Street, Louisville, Ky. — George Cooper, president j
H. M. Robertson, Esq., E. M. Stokes, vice-president.

Bvfield SnutT Co., Main Street, Xewburv, Mass. —
John C. Flynn (of the (Jeo. W. Helme Co.).

Continental Tobacco Co., 119 Fifth Avenue, Xew
York, X. Y. — (). H. Chalkley, vice-president.

Dc Xobili Cigar (V).,\3rj-ll Xinth Street, Long
Island City, X. Y. — A. Corte, secretary.

Geo. W. Helme Co., Ill Fifth Avenue, New York,
X. Y. — John C. Flynn, president.

John C. Herman & Co., Xew Cumberland, Pa. —
John C. Herman.

Italian Cigar & Tobacco Co., Inc., 473 Hudson
Street, Brooklyn, X. Y. — G. Pisapia.

Larus & Bro. Co., Twenty-tirst and Main Streets,
Richmond, Va. — A. T. Webster, W. T. Reed, Jr.

Liggett & Myers Tobacco Co., 212 Fifth Avenue,
New York, N. Y. — W. W. Flowers, vice-president.

P. Lorillard Co., 119 West Fortieth Street, New
York, X. Y. — H. Laurence Brooke, Esq. ; David H. Ball,
vice-president.

Philip Morris & Co., Ltd., 119 Fifth Avenue, Xew
York, N. Y. — O. H. Chalkley, vice-president.

R. J. Reynolds Tobacco Co., Winston-Salem, N. C.
— S. Clay Williams, M. A. Braswell, Esq., John C.
Whi tfiker

Roth Tobacco Co., 106 South Frederick Street,
Cape Girardeau, Mo. — E. W. Flentge, president.

Ryan-Hampton Tobacco Co., 822 South Floyd
Street, Louisville, Kv. — J. B. O'Brien, president.

Scotten-Dillon Co., 4085 West Fort Street, Detroit,
Mich. — William M. Dillon, vice-president.

Stephano Bros., Inc., 1014 Walnut Street, Philadel-
phia, Pa. — E. P. Carlton, C. E. Stephano.

Taylor Bros., Inc., 302 First Street, Winston-
Salem, X\ C. — Harry P. Taylor, president and treas-
urer.

United States Tobacco Co., 1107 Broadway, New-
York, X. Y.— H. L. Brown, Esq., J. W. Abbott.

CIGARS WITH "SELF-HOLDERS"

The Twentieth Century Cigar Corporation have
newly introduced the Smoke King cigar, the filler hi
which is a fine blend of Havana tobacco while the
wrapper is Connecticut shade-grown. The feature
that sets it apart from competition is the Bakelite
Molded tip, or hokler, which is supplied with every
cigar. The holder is equipped with an absorbent fdter,
making for perfect cleanliness, a cooler smoke, and
elimination of any harshness or bite that may be in the
tobacco. The makers claim that with this holder it is
j)ossible to smoke the cigar down to the last half inch,
thereby affording a longer smoke. Despite these nu-
merous advantages, the cigar is reasonably jiriced.

PAYMENTS TO GROWERS

Rental and benefit payments to tobacco growers in
twenty-three States co-operating in production-adjust-
ment programs of the Agricultural Adjustment Admin-
istration totaled $12,8()1, 632.35, up to June 30th, accord-
ing to a report nuule by Comptroller John B. Payne to
Administrator Chester C. Davis. Pa>Tnents during the
month of June to tobacco growers totaled $3,338,42 1.()0.
The Agricultural Adjustment Administration is now in
tlie process of paying approximately $2r),000,000 in first
payments to producers adjusting 1934 tobacco pro-
duction.

The Tobacco World

HEDIT Irv. Wilscm, clerk for G. W. Anderson,
United Sales Agent at King (Uty, California,
with this: ''THREE KINGS, in a WHITE
liOLLS, passed the OLD MILL on the road
to MARLBORO . . . in search of a LUCKY
STRIKE of OLD GOLD.

**In the KOOL of the evening they stopi)ed at
JOHNNIE WALKER'S and found PHILLIP MOR-
RIS dressed in his DOMINO suit, talking to F ATI MA
on the inevitable CHESTERFIELD. While there,
who should drop in but RALEIGH of AVALON with
a sack of SPUDS from PIEDMONT, to be delivered
to MURAD on the PALL MALL in London, or what
have you. RALEIGH was riding a CAMEL suffering
from halitosis, so they gave it (the camel) LISTER-
INE, but even then it did not smell like a MILO
VIOLET. (You know what we mean.)

**His IMPERIAL highness LORD SALISBURY,
the high MOGUL of TARRY TON, arrived in an
EGYPTIAN STRAIGHT eight and wanted to bet
TWENTY GRAND that if he had WINGS he would
nuike PAUL JONES do the SALOME in front of
OMAR, the tent maker.'*

Incidentallv, the editor of the United Shield com-
ments: ''Who hasuH one 773//!; or another tried to do
his PRETTIEST in this respect . . . and ' 'twould
be PICAYUNE to not admit that Irving 's mighty
cfTort is a HOME RUN compared with ''IIP' or more
others we've read.' "

Ct3 Ct) Ct3

From Valdosta, Ga., comes the story that a three-
foot snake, found in George Coppage's barn in the
northern part of Lowndes County, was killed, and was
found to have a leaf of tobacco in its mouth. The
snake had already swallowed about half of the leaf.
Several men saw the tobacco-chewing snake killed.
The onlv crack we can make on that yarn is that if it
happened in the north, the snake was probably a male.

Cj3 Cj3 Ct3

Times have changed since the days when there
was an Indian in front of every cigar store. One of
the big points of difference is that then every tobacco-
nist charged the same price for a given product. If
you had "talked to one of those old boys about ''loss
leaders" he would have been tempted to call tor what
was then known as the "hurry-up wagon" to bear you
away to what became known a little later as the "bug-
house." An old buck who remend)ers the old-tashioned
I)rinciples of those old-fashioned days nuiy be par-
doned if he gets a laugh now and then out ot the
present situation. Laugh Xo. 1— the so-called tobacco
retailers who didn't make a move towards preventing
the grocery, drug and tobacco chains from selling
cigarettes at cut prices, are now loudly complaming
that the present compulsory mark-up is inadequat^.
Laugh No. 2— those same kickers are the loudest m
tlieir refusal to support with a few dollars the retad
and national associations which nmst police the trade
to prevent chiseling and the violation of fair-trade

August I, 1934

practices in general. Laugh Xo. 3 — the spectacle of
the cut-pricer wlio makes a big hullabaloo because
another cut-])ricer in his neighborhood cuts prices un-
der his cut prices.

^^A,^ ^h^^^ ^^O^m

Cj3 CJ3 Cj3

You remember reading about Mecklenberg in these
columns. Well, the St. Louis correspondent of Tobacco
has dug up some interesting information about what
he calls the last two members of a lost tribe — that of
the Wooden Indians. (Iiief "Smoke Gets in Your
p]yes" (that sounds modern) and Princess "Honky
Tonkaroo' (boy, page Joe Frisco) are the only two
members of the tribe in St. Louis who have not joined
tiieir fathers in the Happy Hunting Ground. The
masculine survivor stands guard outside the smoke-
shop of Edward Meckleni)erg, while the princess
adorns the front of the shop of the woman tobacconist,
Mrs. Clara lleaghney.

For seventy-eight years, since the day Mecklen-
berg's grajidfafher purchased the chief, he has been
lugged to the sidewalk when the shop oijened in the
morning, and back inside at night — a total of 28,489
round trips, if you're interested. Once adorned with
a tomahawk in one hand and a ])eace pii)e in the other,
the chief has suffered from the ravages of time and
the mischievousness of small boys. He now stands
emptv-handed. Oidy oiic«' has he left his stand in those
seventy-eight years! That was in 1896 when he was
blown 150 feet by a cyclone.

The princess has not ])een so lucky about being
carried to shelter at night. Her feet are buried ankle
deep in a block of concrete to i)reveiit lier being carried
off by an aspiring suitor.

Ct3 Ct3 Ct3

Charles "Mickey" Norman, 3d, was three years
old on Saturdav, July 28th, and his parents had hoped
against hope that he would celebrate the event by
giving up smoking, a habit he acquired when he was
fourteen months old. "Xo, I smoke some more, more,
more," he exclaimed, and to prove it he puffed con-
tentedlv at a cigarette. So long as he could smoke
his cigarette, Mickey chuckled happily and talked in
monosvllables. After that he longed for his pipe, a
corncob a Southern admirer sent to him. "Pipe,"
he demanded, "I smoke." His grandmother explained
that Mickev acquired his taste for tobacco when his
father, a steamshovel operator, gave his pipe to Mickey
as a pacifier so that he could eat his evening meal in
peace. He smokes cigarettes, cigars and a pipe with
equal pleasure. Mickey has never been ill, his folks
said. Two other childVen in the house had measles
and whooping cough, but Mickey escaped. A doctor
examined liini recently and found him in perfect physi-
cal shape. No one would want Mickey's example fol-
lowed bv babies generally, but maybe he is destined
to be the clinching proof that tobacco, instead of being
the terrible drug it was long accused of being, is good
for what ails you.

I

I

MIA.

pHIbADEli

((

CIGAR SMOKING" INVITED AT BAYUK'S

S YOr stop (»tT tlu' olovator to tho seventh floor
ot^ees in Ba\ nk hejubina iters, yonr eyes are
greeted l)y the si<»n : ''('i^ar Smoking (^or-
dially Invited" . . . Sehraurin «k Hosenian are
showinir nice strides on Pliillios in their Younjrstown,
Ohio, territory . . . Kin- Ciuar Co., Flint, Mieh., are
keejiintc their sah's foree i)e])i)ed up to meet the demand
for Haynk Pliillies in their re.u^ion . . . (Nmverse To-
bacco (V).. New I^edt'ord, Mass., are phicinu* Phillies
freely in their territory, as indicated hy the shi])ments
rollinu- fiom the factory with reuularity . . . K. A.
Kern, Manstield, Ohio, "is kee])inii- Baynk i)roducts to
the forefront . . . T. F. Stanton, of Portsmouth, Ohio,
accompanied hy Mrs. Stanton, sto])ped otT at Bayuk's
en route to Atlantic City, where they are spendin*;
their vacation . . .M.J. Bland, associated with F. J.
Biel, Terre Haute, Ind., accomi)anied hy Mrs. Bland on
their honeymoon throuuh the Fast, took advantage of
the opportunity to i^o through the Bayuk factory.

ROBBERS FOILED THIRD TIME

The Yahn & McDonnell hea<U)uarters at ('A7 Chest-
nut Sti-eet was the scene of an attem])ted huri^lary last
week, Init the hur.irlars were friirhtened away when they
trip])ed the l)Uiiilar alarm and detectives arrived on
the scene.

The men entered the huildinir throuich a skyli'-;ht
in the roof and had made their way down to the second
floor, hut rather than attempt to f«n<'e the d<»or there
they proceeded to cut a hole throuirh the floor in order
to reach the first floor where the humidor is located.

But the falliim- ]>laster tri])ped the hur<rlar alarm,
and detectives who ariived on the scene almost at once
were in time to catch sitrlit of one of the men just as
he was esca])in,ii: through the skyli^dit. Sliots were flred
at the man, hut he eluded his pursuers hy runnin.i!: over
the roofs of nearV)y liuildinirs and escaped.

This is the third unsuccessful attempt to raid the
stock of Yahn & McDonnell.

T. B. White, manatrer o\' tlie ciirar department of
Jolin Wairncr c\: Sons, 233 Dock Street, is confined to
his home followinu" an (»iK'ration for the removal of his
tonsils la^t week. According 1<» latest re^jorts, Mr.
White is ])rop:ressini!: satisfactorily and is expecting to
be able to return to his desk early next week.

Trade Notes

Oeorji:e Stockinir, of Aran.iro y Aran.u:o, was in town
last week visitinii: John Wauner ic Sons, local distribu-
tors of this famous brand.

The many friends of Bob Donnelly, well-known
salesman for Yahn & McDonnell, are con^natulatiiri;
him on his lucky escajie from what mitiht have been a
serious automobile accident. Mr. Donnelly escaped
with a few cuts and biuises and is able to attend to his
duties aj::ain.

Clarence Wilson, head shiiii)er for John Wai^ner &
Sons, is jjroudly drivins? a nice new delivery truck
al)out the streets. Clarence states the new truck is
necessarily larirer than the old one in onler to take care
of the increase<l business experienced by this old-
established house durinii: the iiast few months.

Herman Abrams, recently a|)i>ointed factory re[>-
resentative for the Medalist "factory in this territory,
has })een doin^- such j!:ood woik that he was last week
jiromoted by beinu: nuule factory representative for the
entire State of IN'imsylvania, as well as Baltimore and
\Vashin,y:ton territories. Yahn & McDonnell, local dis-
tributors of the brand, report a marked increase in
sales on this pojjular brand duriiiir the past few weeks.

Retailers in town (that is most of them) are jubi-
lant over the results obtained from (ieneral Johnson's
recent order establishinu a fixed retail price on cig-
arettes. The former extreme cut-raters are of course
not so well ])leasetl, since now that they do not have the
inducement of lower ]n-ices to offer the consumer, they
tind that they never did have the goodwill of the con-
sumer and sales are driftin«x more and more into the
hands of the retailer who always held out for fair deal-
intr and a livinir profit. Let 's hope the established price
will be maintained lon^- after the expiration of the
iu(>sent ninetv-dav order.

Th* Tobacco World

To Independent Cigar Manufacturers

Notice of Election

KjAR manufacturers who are not members of
the Associated Cigar Manufacturers and Leaf
Tobacco Dealers are entitled to elect two
members of the Code Authority; one of these
members is to represent machine manufacturers and
one of these members is to represent hand manufac-
turers. The following is a copy of a letter which has
been sent to manufacturers who are not members of
the association and there is also printed herewith a
copy of the ballot which accompanied said letter.

**If you are a cigar manufacturer not a member
of the association and have not received such a letter,
fill in the ballot here reproduced and mail same as
soon as possible to the Cigar Manufacturers Code Au-
thority, 125 Park Avenue, New York City. In order
to be counted your ballot must be received by August

(ith.^'

Article VIII, Section 1 of the Code of Fair Com-
petition for the cigar manufacturing industry pro-
vides :

** There shall forthwith be constituted a Code Au-
thority consisting of not more than thirteen (13) mem-
bers to be selected as follows:

"Six (6) members, three (3) of whom shall repre-
sent machine cigar manufacturers and three (3) of
whom shall represent hand cigar manufacturers,
selected by the manufacturers who are members of

the Associated Cigar Manufacturers and Leaf Tobacco
Dealers.

"Two (2) members, one of whom shall be ap-
pointed by the Labor Advisory Board and one of whom
shall be appointed by the Consumers Advisory Board
of the National Recovery Administration.

"Two (2) members, one of whom shall represent
machine cigar manufacturers and one of whom shall
represent hand cigar manufacturers, selected by and
from non-members of the foregoing association. With-
in fifteen (15) days after the effective date hereof the
other members of the Code Authority shall submit to
the Administrator a plan for the selection of said two
(2) members which, upon, his approval, shall become
effective. ' *

Our records indicate you are not a member of the
Associated Cigar Manufacturers and Leaf Tobacco
Dealers; therefore, it is your privilege to express a
choice of someone not associated with the Associated
Cigar Manufacturers and Leaf Tobacco Dealers as a
member of the Code Authority.

If more than fifty per cent. (50%) of the cigars
you produce are made by machine, your selection is
limited to someone from the machine group. If more
than fifty per cent. (50%) of the cigars you produce
are by other methods, your selection is limited to one
of the hand group.

Higher Prices to Tobacco Farmers

OBACCO farmers, who agreed a year ago to
reduce their 1934 crop in return for reasonable
prices for the 1933 leaf, are keeping their
promise, J. B. Uutson, chief of the tobacco sec-
tion, Agricultural Adjustment Administration, said to-
day after an analysis of the July 1st crop report. The
report, prepared by the crop reporting board of the
Bureau of Agricultural Economics, was released July
10th. It estimated the tobacco crop at 1,039,517,00<J
pounds. This is the approximate figure at wJiich to-
bacco farmers last year agreed to limit this year's crop.
The indicated crop is as much below annual world
consumption of United States tobacco as the 1933 crop
of 1,385,107,000 pounds was above consumption, and
this was the broader mark at which tobacco farjners

were aiming.

Tobacco farmers secured higher prices tor the
1933 crop by their co-operative, voluntary action in
agreeing to reduce this year's crop, and in addition
they have made substantial progress towards reducing
excessive 8uri)lus stocks that depress prices. Their
action will result in removal of approximately 2(K) mil-
lion pounds of the 950 million pounds of surplus to-
bacco stock now on hand.

With the 1933 crop, the total supply of tobacco
went up to 3,660,000,000 pounds. A normal supply
would have been 2,710,000,000 pounds. More than 7oO
million pounds of this price depressing surplus accu-
mulated during depression years and at low prices to

farmers. , , . .i

While all tvpes of tobacco have shared m the re-
duced estimates, a favorable stock situation places

August I, 1934

flue-cured in a highly favorable situation for the 1934
marketing season. Flue-cured, grown in the Carolinas,
Virginia, Georgia and Florida, shows a 20 per cent,
reduction below last year's crop. This year's crop
is estimated at 526,743,000 pounds.

Burley tobacco, grown over a wide area in Ken-
tucky, Tennessee and nearby States, has been reduced
27 per cent, from last year's crop. This year's crop
is estimated at 280,226,000 pounds, a figure slightly
more than 100,000,000 pounds under the total har-
vested last year. Because of excessive stocks, the
supply of Burley still is well above one billion pounds,
which is considerably in excess of normal needs. Dem-
onstration by Burley growers that they will reduce
acreage, however, should react favorably on the market
in spite of large supplies.

Acreage planted to fire-cured tobacco, grown prin-
cipally in Kentucky, Tennessee and Virginia, has been
reduced 18 per cent. This was accomplished following
an advance in the average price from 5.5 cents for the
two previous seasons to 8.1 cents a pound for the 1933
crop. The estimated 1934 fire-cured crop is 111,365,CK)0
pounds compared with 133,353,000 pounds last year.

The report estimated a crop of 30,388,000 pounds
for dark air-cured tobacco, grown chiefly in Kentucky,
Tennessee and Virginia, compared with a 1933 crop of
33,302,000 pounds. This is less reduction than shown
by some other types but the price improvement for
the 1933 crop in return for a promise to reduce pro-
duction was nearly double the average of the two pre-
vious crops.

I

I

What Is a Tobacco "Futures Market"?

A Few Illustrations of "Hedging'', or Price Insurance

By EDWARD A. BROWN

IKK cverylliiiii; new, tliore aro hound to be
ij»anv who do not und(M-stand the siirnificanee
or im])ortance of "futures markets" insofar
as it ai)plies to tobaeeo. A few sini])le ilhis-
t rat ions of hedginsr, or price insurance, should suffice
to ex})hiin to the uninitiated wliat a futures nuirket on
an organized commodity exchanj»e really is. ^ At the
outset let me say that tradintr on the New York To-
bacco Kxchano-e, Inc., will be conducted similarly to
trading upon other exchange floors such as the New
York Cotton Exchani»e, the Chicago Board of Trade,
etc.

Now, trading on every connnodity exchange is
made up of two broad classes of transactions; s])ot
or cash, and futures trading; these are frequently
looked ui)on as separate or distinct methods of mar-
keting and it would ap])ear so, although every exchange
stresses and practically confines itself to the trading
in futures.

In spot trading, ])urchases are made from sam-
ples, for early delivery and payment ; while in futures
trading we have a transaction in contracts for de-
livery within a future specified month, of tobacco in
storage and evidenced by a negotiable warehouse re-
ceii)t. This class of trading is against the basis or
contract grade, as distinguished from sample. In ad-
dition to the contract basis grade and type — (in the
New York Tobacco Exchange contract it is Burley
U. S. type 31-H.*JF) — other types, grades and qualities
are made permissible delivery with adjustment of
price for the difTerence in value between the * 'con-
tract basis" and the tobacco actually delivered against
the traded contract. The regulations of the Exchange
define and clearlv si)ecifv each tobacco deliverable on
or against contract. The seller always has the oj)tion
as to which one of the several permissible tobaccos
he will deliver at maturitv of his contract should he
elect to make delivery of the actual. The regulations
of this exchange in its j>ermissible deliveries cover
and embrace the several fire-cured, flue-cured and
Burley and Maryland types of the B, C and X grouj).
This arrangement makes for a broad and flexible con-
tract.

The seller can alwavs make deliverv of actual
tobacco within the range of deliverables, and delivery
is always accepted. This result is secured by the
margin which evei v l)uver or seller of a contract is
compelled to put up, fortified by the guarantee of the
Clearing Association operating in conjunction with
the Exclumge, and through which all contracts must
clear. In other words, the Clearing Association in-
sures the integrity of everv contract.

CD V V

As a rule, and in the great majority of cases,
future contracts are liquidated or closed out by con-
tracts on the floor of the Exchange before delivery
date; future contracts are sold over and over again
many times before maturity, and the percentage of
delivery of the actual physical commodity is very
small compared with the number of transactions.
Futures trading is quite like the negotiation of a

8

])i-omissory note or of a w^arehouse receipt, each
negotiation or transfer of the note or warehouse re-
ceipt is a separate transaction and accounts for the
large number of transactions, although there is but
one note or warehouse receipt. This fact also accounts
for the fact that exchange of trading apparently dis-
})oses of a quantity of the connnodity greatly in excess
of the total actual output of the physical commodity,
and should make clear in the mind of the layman why
the actual crop of cotton, for instance, is considerably
less than the apparent volume of cotton traded on the
Cotton Exchange.

At the inception of a futures transaction, there
is neither transfer of title nor payment. Margin only
is deposited, while delivery and passing of title as
well as ])ayment is to be made at a distant month.
Thus heavy trading, on a relatively small capital in-
vestment is })ossible. The heavier the trading, the
wider the market, and the less likelihood of manipu-
lative or speculative control. A market which is wide,
continuous, li(|uid and of breadth, best reflects true
conditions of supply and demand creating a fair and
true price basis.

Every Exchange is a price registration center,
but })rice is not determined by the Klxchange itself,
for it does no trading nor does it participate in any
trades. The price comes from the impact of supjjly
and demand influenced by the individual judgment of
the numerous buyers and sellers coming together at
the ring, or market jdace. A trade then is the culmina-
tion of the meeting of a satisfied seller and a satisfied
buyer; otherwise there is no deal. The Exchange, as
I have said, does not make ])rices, it merely records
them conspicuouslv, and instantlv bv the most modern
means of connnunication it broadcasts and makes them
public. In other words the Exchange merely provides
the physical machinery for trading and for recording
trades, it furnishes the market place or ring for its
bioker members, who are held strictlv accountable for
any breach of the high business ethics laid down by
the F]xchange.

Perhaps the chief economic function performed
by the organized exchange is the price insurance or
hedge. By this method of hedging, the jobber, dealer,
exporter, manufacturer and banker, in fact every one
from the grower up to the ultimate consumer may
avail himself of insurance against price fluctuations.
For example, Mr. A., a tobacco dealer, has i>ur-
chased, let us say 10,(KM) j)ounds of tobacco on the
"^loose leaf floor. Possibly weeks or months may elapse
before he finds a buyer for this tobacco, in the mean-
time he runs the risk of a price decline. To ])rotcct
against such drop, he would innnediately take out price
insurance, via the hedge, by selling a contract for
1(),()()0 pounds on the New York Tobacco Exchange,
selecting a distant month in harmony with his idea
as to when he would be most likely to dispose of his
actual. As soon as he finds a customer for his actual
tobacco, he sells the actual and at the same tinie
li(iuidates his futures transaction by buying back his
contract on the New York Tobacco Exchange, if the

The Tobacco World

IT TAKES A MAN like "Bill" Horn, who won the Gold Cup in 1 932, to wind a big racing
hydroplane up to 3000 r. p. m. and hold her to a speed of 60 to 70 miles per hour . . .
lor mile after mile. And when he's tired Camels quickly increase his vim and energy.

T7^f Tf I I f f I^P this delightful way of '
\^J\J ijij JLjIJiVIj on^Wour flow of enen

Experience of

Camel Smokers

confirmed by Science

A famous New York research laboratory re-
veals that smoking a Camel produces a defi-
nite increase in your flow of natural energ>'.
The effea is delightful, completely natural.

Many smokers have learned of this "ener-
gizing effect" in Camels for themselves. "Bill"
Horn, winner of the gruelling Gold Cup race,
refers to his experience in these words :

"The man who drives a Gold Cup winner
needs the last ounce of energ>' he's got. After
a championship race I 'break out' my pack of
Camels quickly, believe me! In no time at all I

get a 'lift' and everything is all serene! It's a
swell feeling — just to smoke a Camel and beyour
real self again ! That's what I do whenever I feel
played out, and Camels never get on my nerves"
Try this pleasant and convenient way of
ironing out fatigue and increasing vibrant
energy'. Turn to Camels and learn the truth
of the saying, "Get a lift with a Camel." Like
to smoke steadily.' Smoke as much as you
wish! Camels are made from finer, MORE
EXPENSIVE TOBACCOS than any other
popular brand. They do not get on the nerves.

Camels are mad* from Hner, MOBE EXPENSIVE TOBACCOS
— Turkish and Domestic — than any othar popular brand.

CAMELS

Costlier

Tobaccos
never get on

your Nerves

44

Get
ith a Camel !

99

wi

CoprrlSht. 1931, R. J, Reynolds Tubacco Cmnpui;

August I, 1934

price of the actual tobacco has declined so that he sold
at a loss, this loss would be practically offset by the
profit in the futures transaction. This is due to the
fact that the futures nuirket price which is based upon
the cash or sjiot price, usually moves up or down with
the- spot nuirket like two parallel lines, so that when
the spot price declined, tlie futures nuirket also de-
clined, thus Mv. A. was enabled to buy in his futures
conti-nct for less than he sold it for, the ditTerence
oiTsets the loss he took on the sale of the actual tobacco.

Mr. Manufacturer is also interested in price
fluctuations, the variations in supply and demand, crop
conditions, etc. He took, can hedine. He buys, let us
ray, 10,(HH) ])ounds of tobacco and inunediately sells
on Exchanjre an equivalent contract for 1(),00() pounds.
If to])jicco de^'lines he buys in his futures at a profit
(upial to the decline in the value of his actual tobacco.
Inventory likewise can be protected aiifainst decline in
value, by seHinu' futures ajrainst inventory, and when
the market dro])s these futures are bouJi:ht back or
liquidated, auain at a profit ofTsettin^i]: the d(H'line in
value of the inventory.

A very laitre amount of tobacco is exported as
you know: freipiently by the time the tobacco reaches
Its destination, there has been a sharp decline. The
buyer then may dispute the (juality of the tobacco, or
find some other cause for conqdaint, all the time his
real grievance is the fact that he has contracted to
pay for the tobacco considerably more than the then
prevailing: price. To meet this ])ossible situation, if
the exporter had hedsced he would liave made a profit
sufficient to absorb the decline, and to enable him to
give his customer tlie benefit of the drop in price,
without, however, liimself sufTering, because tlie profit
on the hedge would make u]) substantially the differ-
ence between the original quoted j)rice and the de-
clined ])rice at delivery; in addition he has a satisfied
customer without cause for complaint who need not
now urge wrong cpiality or poor condition as an excuse.

All foreign Iniyers do not resort to this subterfuge
to avoid a contractual obligation, they take the loss
and accept delivery, but how much better it would be
if the foreign customer had resources to the hedging
facilities of the exchange, for he, too, could insure
himself against the jjrice decline by trading in futures
as a hedge. I am satisfied that the American exporter
would gain tlio advantage if his foreign buyer avails
himself of exchange trading in futures with which he
is usually more familiar than his American cousin.

Again a price is often quoted for tobacco not in
stock, the dealer relies upon his ability to ])ick up the
necessary amount when needed to fill the order, but
alas it also often happens that when the time comes
to ])ick up the tobacco the price has gone up, in this
dilennna, if he fills the order, he must pay the increased
price and pocket the loss. With the New York To-
i)acco Exchange functioning, he could take out ])rice
insurance bv tradinu: in futures in the same manner

*

as indicated for the jobber. Suffice it to say that
hedging can be utilized under varying conditions and
to cover different positions of the several factors in
the tobacco industry and just as eflFectually as is now
done by the grain elevators, millers and others in the
grain trade.

Besides the manv and obvious advantages of this
form of price insurance, there is another and very im-
portant feature, that is that the banker looks with
favor upon the hedged commodity, for if hedging were
not possible through a future market, banks could not

10

safely grant credit to the extent they otherwise would,
with the ability to hedge, the collateral can be safe-
guarded against decline and so with the hedged com-
modity the banker can and usually grants credit some-
times up to 80 per cent, or 90 per cent, of the value of
the wheat or cotton collateral. Incpiiry at any bank,
I am sure, will sustain this statement.

Trading in futures and commodity exchange have
been the subject of thorough investigation and study
in the United States and other countries; both the
United States Chand)er of Commerce and the Inter-
national Chamber of Conunerce at different periods
and independent of each other have made an ex-
haustive investigation and study and both ai)proved
and endorsed the commodity exchange and trading in
futures. ^'1

Just a brief sunnnary of the New York Tobacco
Exchange, itself. I have already pointed out that it
is a market place, and that beyond that it does not go;
it does not itself engage in trading, in fact the laws
of New York which granted its charter, expressly ])ro-
hibit it from making any i)ecuniary i)rofits. It is
])urely a membership corporation, neither paying nor
declaring dividends or profits. It maintains itself by
the dues paid annually by its members. Its officers
receive no compensation, except the secretary who is
the chief administrative officer. Membership is a i)er-
sonal privilege, limited to two hundred and fifty in
nund)er, but oi)en to anyone who can meet the moral
and fiiumcial re(iuirements, and is elected to member-
ship.

The exchange is your exchange, if you choose to
use it. Membership is not necessary to enable one to
hedge, or take out i)rice insurance, or to otherwise use
its trading facilities; they are open to everyone, mem-
bers and non-mend)ers, but trading must be conducted
through a member who charges a very nominal com-
mission for the services he performs and the responsi-
bility he assumes. Of course there are advantaices
owing from membership. The office of the secretary,
which I have the honor of filling, will cheerfully answer
any reasonable question regarding trading in futures,
the facilities of the exchange or any other prosier
matter of interest to the tol)acco industry.

In conclusion, let me point out and emphasize
this fact. The exchange does not intend to, nor will
its functions in any wise interfere with your niethods
(»f conducting your business, or merchandising to-
bacco; nor does it intend to interfere with or sup])lant
tlie present loose leaf auction fioor methods. It will
if anything augment and aid the present methods of
merchandising; it will facilitate and increase trading.
What it will do, and what you cannot possibly do
without this exchange, is that your risks— may I say
gamble? — resulting from price fluctuations can be
guarded against by price insurance, which to my mind
is just as important to you as is fire insurance.

The fonufoituf is the text, in part, of on address delivered at the
Thirty-fourth Annual Con^vntion of the Tobaeco Association of the
I'mtcd States, by Ediuard A. Brown, one of the founders and orifanicers
of the association, and secretary of the New York Tobacco Exchange,
hu.

WALTERS ON RETAIL AUTHORITY

Edgar B. Walters, prominent New York importer,
has been named administration member of the retail
tobacco trade Code Authority, it was announced to-
day. He previously was named to the wholesale to-
bacco trade Code Authority.

Th€ Tobacco World

August I, 1934

tl

Cost Protection to Small Tobacconists

ATIOXAL Recovorv Administrator Hugh S.
Johnson on July 12th issued Orders giving
cost protection to small tobacconists on an
emeroency basis by approving a minimum
mark-up binding all retail distributors. Tlie Orders
will ])revent the practice of using cigarettes as *'bait/*
a practice which has practically eliminated small en-
terprise from tobacco distribution.

The etfect of the Orders which became effective
:\ronday, July 16th, will be to permit maintenance of
the present normal retail prices for popular brands
of cigarettes — 10 cents a package for those cigarettes
l)riced by manufacturers at $5 or less per thousand and
two packages for 27) cents for other popular grades.

The mark-uii basis is 5^4 per cent, on cigarettes
of $5 or less per thousand manufacturers list price and
GVo per cent, on other cigarettes, and the Orders were
issued in conformity witii the recently approved Codes
for the Wholesale 'and Retail Toliacco Trades. The
texts of the Orders are attached.

The Retail and Wholesale Tobacco Trades have
supported the President's program to increase pur-
chasing power. The retail Tobacco Code, for exam-
])le, requires minimum wages more than 10 per cent,
hiirher than those in the general Retail Code. It is
thought by X. R. A. that every reasonable effort should
be made to insure such reasonable standards of compe-
tition as will permit the continued payment of these
wages. It is also important that in a trade so charac-
terized by small enterprises, a reasonable minimum
of income should be insured to the small storekeeper
for whom, at the end of the week, such income as may
be earned is tantamount to w^ages.

The remedial provisions, which are embodied m
two Orders — one for the Wholesale Tobacco Trade
and one for the Retail Tobacco Trade— have been cal-
culated to establish a fair minimum price for the retail
sale of cigarettes, which will at the same time not
raise existing prices (except for stores which have
used cigarettes as *'bait ''). Minimum wholesale prices
are established at a very low level, substantially below
the current quotations of wholesalers. These whole-
sale prices, again, are not established with a view to
insuring anv wholesaler a profit, but rather to stabilize
competition in the A\Tiolesale Tobacco Trade so that
there will be less tendency to intensify price cutting
in the Retail Trade. In both cases, the margins estab-
lished are low enough so that no distributor will be
deprived of the advantages of his efficiency.

These prices are distinctly of an emergencv nature
and are to be effective for a period of approximately
ninetv davs. Meanwhile, the N. R. A. Division of Re-
search and Planning has been directed to make a study
of their operation so that N. R. A. may be able to
decide at the end of the period whether a continuation
wnll be necessary or advisable.

Codes of Fair Competition for the Retail and
Wholesale Tobacco Trades were signed on June 9th
and 19th. It has long been a matter of common knowl-
edge, because of the use of tobacco products, particu-
larly cigarettes, as ''bait'' that the tobacco distribut-
ing trades composed preponderantly of small store-
keepers, have been suffering from severe price compe-
tition.

N. R. A. cannot guarantee any form of enterprise
a profit. Furthermore, competition with respect to

price is considered desirable by this Administration
because it is recognized that evolution towards more
efficient distribution, wuth consequent benefits to the
]n'oducer of raw materials as well as to the consumer,
has generally resulted from most competition, includ-
ing competitive pricing practices. This does not mean,
however, that unrestricted price cutting can be per-
mitted.

H. K. A. believes that the situation which has
arisen in the tobacco distributing trades goes beyond
healtliy price competition. It has become the practice
of large retail merchants primarily engaged in the
distribution of other products, to use cigarettes as
**bait" to attract customers, often disi)osing of them
at prices below the cost of these articles to the small
independent merchant. This has been possible because
of certain merchandising characteristics of cigarettes:
they sell for a low price, are widely advertised, are of
uniform (juality and package, and are almost a daily
]mrchase of the consumer. They are sold in (piantities
by large retail distributors whose cigarette business
is for them only a side-line, at prices substantially lower
than the wholesaler can afford to quote to independent
retailers. The consequence, particularly during these
times of depleted resources for the small merchant,
has been to place in jeo])ardy the livelihood of many
thousands of them and their ability to maintain labor
standards.

For the foregoing reasons, when the tobacco dis-
tributing codes were ai^proved and the Code Authori-
ties, which were promptly established, had recpiested
the declaration of an emergency and the fixing of
minimum prices, prompt attention was given by the
Administration to a study of the subject with a view to
providing such protection as might seem necessary.
Studies submitted indicate that the lowest reasonable
cost of the wholesale distribution of cigarettes is around
7% per cent, of the selling price, and of retail distri-
bution, around 20 per cent. They show that, to estab-
lish minimum prices so as to insure recovery of these
margins by tobacco distributors would in some in-
stances raise prevailing prices of cigarettes as much
as two or three cents a package. Therefore, the actual
mark-up fixed is substantially less than the lowest
reasonable costs indicated. The studies also indicate
that an important reason for the present inadequate
operating margins is the use of cigarettes as "bait"
by unrelated retail trades.

LANIER ON WAREHOUSE CODE

J. C. Lanier, of Greenville, N. C, for the last year
a marketing specialist in the tobacco section of the
Agricultural Adjustment Administration, has been
granted a ten-months' leave of absence in order to
become administrator for the auction and loose-leat
tobacco warehouse industry code.

Mr. Lanier is a tobacco grower with many years'
experience in growing and marketing the crop.

Headquarters for the code authority, which will
function this season for the first time, will be in Green-
ville, N. C. Branches will be maintained in all tobacco
belts.

Th4 Tebacc0 World

BAYUK BULLETIN

WCOOOMMKr

VOLUME n.

AUGUST 1, 1934

NUMBER 14

PHULOFAX

(The Retailer^ 8 Friend)

SAYS

Good thought from
S. R. B., a retailer:
"I don't sell soft or
hard drinks in my
cigar store, but I do
have a nice ice cooler
of Aqua Pura that
draws in many a man
for a drink — and some cigars."
— 0 —
It is a very pleasing thing to ob-
serve that the tap rooms are handling
standard brands of cigars . . . per-
haps the "saloon cigars" went out of
fashion with the old-time saloons.

Somehow or other an electric fan
in a ciRar store makes the store more
inviting these hot days.

B. L. C, a salesman, contributes
this: "I work my trade every week.
I get a week's vacation. Week prior
to my vacation, I get regular orders
from my customers, also, get their
orders for their anticipated require-
ments (luring my vacation week. Be-
fore delivery, my House calls up each
customer and asks, 'Anything to add
to your order going out today?' " A
little more than "just something" to
this idea, says I.

Don't ever get a man to merely
BUY more of your product unless you
have demonstrated to him how he can
SELL more of your product.

0. C. B. tells us that he "doesn't
just sell merchandise to his custom-
ers." He remarks he "sells merchan-
dise and gives efficient SERVICE."
Good for you, O. C. B.

Of course, each and every one of
08 is cheerfully imparting all the
knowledj^e we possess as to necessary
procedures under the Codes to those
who may not have had an opportunity
to analyze the Codes.

Great to see how so many competi-
tive jobbers (manufacturers ana re-
tailers, too) greet each other these
days with a hearty hand-shake and a
<^cere smile, as against the old daysl

Nothing in the codes that prohibits
a determination to go out and legiti-
niately fight for your share of the
business. "Knocking" and under-the-
wlt competition were never sanctioned
binder the always existent Code of
Fair Play. Right?

— 0 —

A salesman came Into the office
5^ a ci^'ar manufacturer smoking. He
didn't Ket an order. (That's all there
»«to the story!)

'"Should a salesman wear a hat
*nen he calls upon his customers
these hot days?" asks B. W. G. Per-
jonally (and we might get knocked oflP
^or saying it) we think he should.

WHICH BRINGS HOME THE PRIZE?

Retailing cigars is a lot like yacht
racing. In both games success is
largely a matter of sails — or sales.
The spelling depends on whether you
stand on a heaving deck or behind a
counter. The chap who enters the race

in a row boat with a bed sheet rigged
up for a sail, hasn't much chance
against a cup-defender with her ma-
jestic spread of canvas. Neither has
the retailer who backs the long-shot,
long profit brand against the big pop-
ular seller.

A NEW ANSWER

TO AN OLD ALIBI

Salesman Zeitlin Meets and Conquers
the '^Longer ProfiC^ Argument

JOBBER STEPS UP SALES
200,000 IN A MONTH

When Amster-Kirtz, cigar distribu-
tors in Cleveland, went over their
books at the end of June, they dis-
covered an increase of 200,000 in a
single brand of popular cigar. This
discovery, while gratifying, was no
surprise to them because it came as
the result of a carefully planned cam-
paign which had been conducted over
the previous thirty-day period.

Early in the month their sales force
began a concerted drive on five-packs
of this particular cigar. Within a
short time 100,000 cigars over the
normal average had been distributed
and wherever possible, a special five-
pack display installed. Before this job
was finished, repeat orders had al-
ready begun to flow in.

But in their zeal for promoting five-
packs the salesmen were not allowed
to forget the approach of Father's
Day on June 17th. They were pro-
vided with display material and suc-
ceeded in planting hundreds of Fath-
er's Day displays throughout the
Cleveland territory, with the result
that many dealers reported sales rang-
ing from 10 to 75 boxes — a good pro-
portion of these boxes being Amster-
Kirtz's brand.

No sooner was Father's Day past
than this energetic sales corps
turned their attention to the Fourth
of July. Again special displays were
provided and again there was a per-
ceptible jump in sales.

A 200,000 increase in volume might
well cause any jobber or distributor
to congratulate himself on a good
month's work. But the effect on the
retail trade of this accelerated activ-
ity in the brand must have been worth
even more.

As reported, there was nothing un-
usually elaborate about the displays,
nothing revolutionary about the sales
campaign. Amster-Kirtz merely dem-
onstrated what has been proved time
and again. Given a good cigar, good
display, a good sales force and a
determination to take advantage of
seasonal opportunities — and there can
be but one result.

a^/uif^

D.B.L

**::>»*^k,amd ••toik BAYUK aGAKS. INC.. PWOm.

The scene is Bridgeport, Conn.
The actors are J. D. Zeitlin, cigar
salesman, and a retail cigar
dealer. There seems to be an
argument about something.
There is. It's the age-old and
bewhiskered debate on the sub-
ject of longer profits vs. quicker
turnover.

ZEITLIN: Look here, Mr. X,
you stock my brand and you
get plenty of calls for it. Why
don't you display it on top of
the case?

DEALER: Til tell you why. I
display the brands that bring
me in the most profit.

ZEITLIN : That's why I'm ask-
ing you to display my cigar.
It's the most profitable brand
in your store.

DEALER: You shouldn't run
around this hot weather with-
out a hat. It's bad for the
brain. See this El Ropo on the

case here? It brings me in
half again as much profit as
your cigar.

ZEITLIN: Say, I'll make you a
little bet. You display a box of
my cigars and some five-packs
next to those El Ropos. If you
don't sell five boxes of my
brand while you're selling one
box of El Ropos, I'll buy you
the best dinner in town — and
your profit on those five boxes
will be more than three times
what you make on the one box
of El Ropos.

Either the dealer wanted the
dinner or else he wanted to show
friend Zeitlin up. Anyway he
did display Zeitlin's brand cheek
by jowl with the El Ropos. And
the result was just about what
Zeitlin had predicted — five sales
to one, in favor of his cigar.
Needless to say, that dealer is
now giving Zeitlin's brand the
most prominent display in the
shop.

Waahinffton societr ta In • rale of
Uarhtcr at the recent aally of Mra. Alic*
Lonffworth, who qoippcd at a combination
dansant. block party and kaffee klatch th«
(»ther eyeninc: "Mr. Narcnt'a Philliea aro
onir a ball dab. bat Mr. Barak'a arc a
■mokol"— Philadelphia Record.

ANOTHER RECORD

Recently the Bayuk Bulletin re-
ported the case of Adolf Boehler.
Philadelphia cigar salesman, who sold
218 separate retail dealers in one week
and has been averaging 26 orders a
day.

Now there comes the story of a
sales force of 16 men, who in one
week gathered in 2364 orders or an
average of something like 148 orders
per week per man. If this aggregation
of order rustlers keep up anything
like that pace, it won't be long before
they hang up a record that will re-
quire some beating.

BAYUK BRANDS BUILD BUSINESS

Bayuk Phillies

(BAYUK PHILADELPmA P^tFECTO)

Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

All Tobacco Products Down in June

UK following eoinpaiative data of tax-paid
products, indicated by the monthly sales of
stamps, are issued by the Bureau. (Figures for
June, 1934, are subject to revision until pub-

lished in the annual report) :

Products
Cigars (large)

Class A No.

lUass B No.

Class C Xo.

Class D Xo.

Class E Xo.

-June-

19 34

345,039,060

4,195,1213

51,341,970

3,598,545

280,972

1933

357,006,990

2,244,474

55,323,630

3,706,112

289,180

Total 404,455,760 418,570,386

Cigars (small) . . .
Cigarettes (large)
Cigarettes (small)
SnutT, manf 'd. . . .
Tobacco, manf 'd . .

.Xo. 19,420,853
. Xo. 198,471

.Xo. 12,045,062,823
. lbs. 2,829,655

.lbs. 26,589,861

20,505,080

246,243

12,462,969,787

3,473,552

28,884,769

Tax-paid products from Puerto Rico (not included
in above statement) were as follows:

Products
Cigars (large)

Class A Xo.

Class B Xo.

Class C Xo,

Class D .No.

une-

Total

1934

3,917,040

303,500

65,950

1,000

4,287,490

1,000

200,0.50

1933

6,148,350

268,000

66,500

6,482,850

300,000

60,000

222,800

Cigars (small) X"o.

Cigarettes (large) . . . .Xo.
Cigarettes (small) . . . .Xo.

Tax-paid products from the Philippines (not m-
cluded in above statement) were as follows:

Products — Juuc —

Cigars large) :

Class A Xo.

Class B Xy

Class C Xo.

Class I) Xo.

Class E No.

1934

17,577,175

90,250

3,620

500

310

1933

12,330,740
11,720
12,926

Total

17,671,855 12,355,386

Cigarettes (small) . . . .Xo.
Tobacco, manf VI. .... .lbs.

290,4(H)

66,190

Statement of Collections for June

Sourrr of Uwruue 1934 1933

Cigars $1,051,372.17 $1,081,013.15

Cigarettes 36,137,581.90 37,390,946.88

Snuff 509,337.94 625,239.12

Tobacco, clu'winii: a n d

smoking 4,788,496.90 5,199,522.35

Cigarette ]ia])('rs a n d

tubes 83,060.83 66,809.94

Miscellaneous, relating to

tobacco 310.18 240.83

June Cigar Withdrawals 1920 to 1932, Inclusive

June, 1920.

June, 1921.

June, 1922.

June, 1923.

June, 1924.

June, 1925.

708,112,284
618,495,102
615,264,023
591,514,124
562,731,556
569,743,013

June, 1926.
June, 1927.
June, 1928.
June, 1929.
June, 1930.
June, 1931.

576,561,866
576,527,570
575,995,733
556,746,375
519,599,166
517,513,659

June, 1932 . . 400,406,156

Processing Tax Returns

Detail of collections from processing and related
taxes proclaimed by the Secretary of Agriculture under
autliority of the Agricultural Adjustment Act (Public,
No. 10, Seventy-third Congress) approved May 12, 1933.

Total from
Month of July 1,1933
Commoditji June, 1934 ^Fiscal year 1934)

Tobacco (tax effective
October 1, 1933) :
Processing tax ..... $2,007,889.29
Import compensating

taxes 10,299.34

Floor tax, other than

retail dealers 2,257.62

Floor tax, retail
dealers 1,372.91

$15,873,985.81

155,209.07

1,814,629.01

244,602.16

Total, tobacco.. $2,021,819.16 $18,088,426.05

OPENING DATES FOR FLUE-CURED

The Acting Secretary of Agriculture, M. L. Wil-
son, after consulting with representatives of the va-
rious ])ranches of the tobacco industry, approved the
following sciiedule of opening dat>es for the flue-cured
auction tobacco markets:

The (leorgia- Florida Belt markets open on
AVednesday, August 1st.

The South Carolina and Border Belt markets will
open on Thur.sday, August 9th.

The Ka.st Carolina Belt markets will open on
Thursday, August 23d, on a ri'stricted basis. Wilson,
(ireenvilie. Rocky Mount and Kinston will open with
two sets of buyers, and all otlier markets will open witli
one set of buvers.

The Middle Belt markets will open on Tuesday,
Sei)tember 11th, on a restricted liasis. All markets
will o])erate witli one set of buyers

The Old Belt markets will open on Tuesday, Sep-
tember 25th.

^rhe Virginia Dark Belt markets will open on
Wednesdav, Noveml)er 7th.

NOTHING "UNDER COVER" HERE

Briarcraft, Inc., New York City, makers of tlir-
new "Clearwell" smokers* pipes, have introduced a
novel feature in pipe construction. They call it the
"Turbulator," which permits a dry, cool smoke, add
ing to perfect pipe contentment. This device is pro
duced in Transparent Cast Bakelite Kesinoid in amber
effect. It enables the user to see how the device con
tributes to smoking enjoyment. The stem is in black
and the bowl constructed from Briar wood, which con
trasts ver>' effectively with the clear amber center
section.

Th€ Tobacco World

QUAKERS HEAR HOLLINGSWORTH

Members of the Retail Tobacco Dealers of Phila-
delphia, Inc., listened to William A. Hollingsworth,
president of the national association and chairman of
the National Retail Tobacco Code Authority; Jesse
Powell, executive secretary of the New York Code
Authority; Nelson Eberbach, ])resident of the local
branch of the National Association of Tobacco Dis-
tributors, George Fringe, secretary of that organiza-
tion, and other speakers at a meeting in the Hotel
Adelphia on July 24.

The benefit of organization, as evidenced by what
had already been accomplished for retail t()})acconists,
was the theme of President Hollingsworth 's address.
The dealers ])resent evinced great interest in the talk,
as was demonstrated by the volley of (piestions they
hurled at its end.

Secretary Powell told in detail how the dealers
in his jurisdiction were co-operating particularly in
the matter of maintaining a strict watchfulness in the
cigarette ])rice regulations now in effect. Wholesalera
lOberbach and Fringe, also emphasized the im])ortance
and necessity of organization and the ])enefits to be
derived from membership in the local retail associa-
t ion.

Unfortunately unable to attend the meeting be-
cause of his absence from the city, A. Jos. Newman,
vice-president and sales manager of Bayuk Cigars,
Inc., forwarded a message to the meeting, urging re-
tailers to co-operate to their utmost in furthering the
self-protection offered by meml)ership in their retail
organization.

CIGARETTE PRICES

Bv William A. Hollinoswoktii
President, Retail Tobacco Dealers of America, Inc.

Wliile the manufacturer's list price is uniform for
all packings of cigarettes, the same qujdity of ciga-
j'ettes can always be sold at the same minimum ])rice,
whatever the pticking. Therefore, when a given cpian-
tity of cigarettes would appear to sell for ditTering
minimum prices in differing ])ackages, the lowest min-
imum price for the given (juantity of cigarettes shall
be the mininunn price for all i)ackings.

For example, take KM) Murads. If sold in a box-
holding KM), the minimum price would ai)pear t<» be
.>1.44; but since the minimum ])rice of KM) Murads, if
sold in ten packages of ten each, would be $1.'W, the
minimum price of one box of KM) Murads is $1..S8 and
not $1.44.

Another example: The minimum price of a tin of
.")() Lucky Strikes wouhl appear to be 'Xl cents; but
since the minimum price of two and a hall' packs ()f
twenty each would be :>1 cents, the minimum price
of a tin of Lucky Strikes is .'51 cents, and not 3:5 cents.

But note that the minimum price of two tins of
Lucky Strike .jOs wouhl be (>2 cents, and not (V2 cents
less 5 i)er cent. The 5 per cent, multiple discount has
been taken advantage of in reaching the .'H-cent mini-
mum, and it cannot be taken advantage of a second
time. Four tins of Lucky Strikes will sell for $1.20,
instead of $1.22, or four tinies 3,3 cents less 8 per cent. ;
as two hundred cigarettes, when sold by the carton of
ten packages of twenty, sell for $1.20.

August I, 1934

I Just Enough Menthol to Cool and
Soothe Without Destroying
The Natural Tobacco Flavor

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATIO.N -^fOW>.

OF UNITED STATES ^'"•^^H^pp'

JESSE A. BLOCK. Wheeling, W. Va President

JULIUS LICHTENSTEIN. New York, N. Y Vice President

WILLIAM BEST. New York. N. Y Chairman Executive Committee

.MAJ. GEORGE VV. 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

RETAIL TOBACCO DEALERS OF AMERICA. INC.

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y President

CLIFFORD N. DAWSON. Buffalo. N. Y Executive Vice President

JAMES C. THOMPSON, Chicago. Ill Treasurer

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

ABE BROWN. 180 Grumman Ave.. Newark, N. J ......President

ALBERT FREEMAN. New York. N. Y First Vice-President

IRVEN M. MOSS. Trenton. N. J Second Vice-President

A. STERNBERG, Newark, N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE •• %; President

SAMUEL MAGID, 2001 N. Mervine St., Philadelphia, Pa SecreUry

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E. ASBURY DAVIS. Baltimore, Md •.... President

JOSEPH KOLODNY. 200 Fifth Ave.. New York, N. Y Secretary

GEO. B. SCRAMBUNG. Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

lOHN F BROWN ..President

HERMAN H. YAFFE, SoV Fox Building, Philadelphia, P» SecreUry

u

News From Congress

_ -AND

Federal
Departments

From our Washington Bureau 622Albee Builomg

LTIMATE destruction of the ei^ar leaf tobacco
pro*i:rani of the Asfriciiltiiial Adjustment Ad-
ministration was predicted July 23d by state
officials and growers ai)j)earin<i: before the
Committee for Reciprocity Information at its initial
liearinir on a reciprocal trade aii:reement with Cuba
under the new tariff law. Any o])enin,ii^ of the domestic
market to C^uban tobacco, it was asserted, would mean
the ruin of the industry in this country, and Con-
necticut jrrowers joined with southern truck farmers
in askinir for a continuance of the present tariff duties.

The hearinf!:s were the first to be held in connec-
tion with negotiation of new trade ajjreements, and
thou2:h open to those who claimed an interest in the
proceedings, no intimation was ufiyen by the coimnittee
as to what products would be inyolyed when the Cuban
asfreement is finally consummated. Witnesses ad-
mitted they were not sure whether their products were
inyolyed and when the hear ins; closed had received no
enlightenment from the committee.

Thomas Walker Page, representing the Tariff
Commission and acting as chairman of the committee,
said that he ha«l no knowledge himself of tlie products
to be named in tlie i)act, asserting that the conmiittee
was appointed by the President solely for the pur-
pose of gathering data on which to base an agreement
with Cuba and was not emi)owered to make recom-
mendations for either raising or lowering tariffs.

He also admitted that there was no wa\ of telling
what products would be inyolved in negotiations with
other countries.

The question of tobacco was brought up by Olcutt
King, Connecticut commissioner of agriculture, and
Howard Whitaker, a Connecticut grower, who cited
the efforts which are being made by the Agricultural
Adjustment Administration to better the condition of
the growers by limiting production ^o that excessive
suipKis stocks might be disposed of.

Accumulated stocks admittedly are the cause of
the present plight of the domestic growers, Mr.
Whitaker declared, but ''now the Republic of Cuba,
reported to have an overjiroduction of tobacco, pro-
poses to cure our overproduction bj' pouring more
tobacco onto our already distressed tobacco markets
in the thin hope that Cuban tobacco will increase cigar
consumption.

**0n the contrary,'* he asserted, '*such a pro-
cedure may easily reduce cigar consumption due to
the inevitable low quality of that part of the crop
which under present duty is kept out of the country
and which w^ould come into this country under a reduc-
tion of the tariff on Cuban tobacco."

JO

NEW approach to the problem of complaints
against codes is being sought by the National
Recovery Administration through the creation
of an Industrial Appeals Board to hear and
l)ass upon charges of discrimination against small
imsinesses. Headed by Amos J. Peaslee, of New York,
former chief of the administration's compliance divi-
sion, with John S. Clement, of Philadelphia, president
of the Sandura Company, fioor covering manufac-
turers, and Monsigncu* John A. Ryan, professor of
social ethics at Catholic University, Washington, as
the other members, tiie board is to consider specific
charges against code ])rovisions or orders of code
authorities which may be felt to be onerous.

There will be no general dissection of codes such
as were conducted bv the National Recovery Review
Board headed by Clarence Da r row, which passed oul
of existence July 1st, it whs ijini)hasized.

^^^^^^^ ^^^^^^m ^^^^^^B

Cj3 Cj) Cj]

KLLTNG below cost, the giving of bonuses, re-
bates or unearned discounts, bribery, defama-
tion of a comj)etitor, failing to report prices,
discrimination lietween customers, misrepre-
sentation, interference with contractual relations of
competitors and cutting prices below established lists
are, in the order named, tlie most important unfair
trade practices which industry is seeking to ban, it is
indicated by a study of codes just completed by the
business advisory and ])lanning councU oi* the Depart-
ment of Commerce.

Each of these practices is prohibited in more than
lialf of the codes in which trading provisions are in-
corjiorated, it is disclosed by a rejmrt of the council,
which is seeking plans for securing effective compli-
ance with the unfair trade practice provisions of in-
dustrial agreements.

As a result of the studies of the council it is an
ticipated that steps will be taken to co-ordinate the
trading provisions of the various industries, so that
there may be developed some sort of standard list sup-
])orted by precedents to be followed by code authorities
in dealing with violations.

A survey of the first 2(M) codes approved disclosed
exactly lt)() trade practices which one or more indus-
tries sought to prohibit. More than sixty of these
|)rovisions could be abandoned, it was found, being
included in less than a dozen of the codes, and the list
could be reduced to approximately twenty practices
which were mentioned in fifty or more codes, if extreme
simplicity was sought, thus making it easier for ad-
ministrative agencies to enforce them.

Th* Totaeeo Werli

NBC

RED NETWORK

9:30-10 P. M., E. S. T.

New York WEAF

Hartford WTIC

Providence WJAR

Worcester WTAG

Portland WCSH

Philadelphia WFI-WLIT

Baltimore WFBR

Washington WRC

Schenectady WGY

Buffalo WBEN

Pittsburgh WCAE

Cleveland WTAM

Detroit WWJ

Cincinnati WSAI

8:309 P. M., C. S. T.

Chicago WMAQ

St. Louis KSD

Des Moines WOC-WHO

Omaha WOW

Kansas City WDAF

Total Cigars

Fiscal Tear

Cigars : Eud'nig

Class A— Jane 30, 19.U

United States 3,8ir),(;0(;,:U0

Puerto Rico 57,564,370

Philippine Islands 233,201,840

Total 4,106,372,550

Class B—

United States 38,745,585

Puerto Rico 2,781,100

Philil)pine Islands 308,491

Total 41,835,176

Class C—

Tnited States .... 577,043,390

Puerto Rico 956,130

Philippine Islands 231,538

Total 578,231,058

Class D—

United States .... 43,750,434

Puerto Rico 2,(K)0

Philii)pine Islands 2,700

Total 43,755,134

Class E—

United States .... 4,918,437

Puerto Rico

Philii)i)ine Islands 3,286

Total 4,921,723

Total All (Masses—

Ignited States .... 4,480,064,186

Puerto Rico 61,303,6(K)

Philippine Islands 233,747,855

Grand Total . . 4,775,1 15,641

August I, 1934

Up 290 Millions in Fiscal Year

— Decrease
-\- Increase

Quaniity

-h 296,475,285

— 1,144,860
+ 73,527,360

+ 368,857,785

+ 1,023,722

-\- 1,735,550

— 237,845

-f 2,521,427

— 75,004,114

— 78,950

— 14,640

— 75,097,704

— 5,026,690
-h 500
4- 624

— 5,025,566

— 679,423

23,637

— 703,060

+ 216,788,780

4- 512,240

+ 73,251,862

+ 290,552,882

Little Cigars :

United States ....

Puerto Rico

Philippine Islands

Total

230,690,840
2,721,000

803,587
1,683,000

233,411,840

Cigai'ettes:

United States. . . .116,551,094,882

Puerto Rico 4,349,850

Philippine Islands 1,974,250

2,486,587

-f 7,153,526,036
-f- 1,661,910

-h 412,790

Total 116,557,418,982 + 7,155,600,736

Large Cigarettes;
United States ....

Puerto Rieo

Philippine Islands

Total

Rnuff (lbs.):

Tobacco Mfd. (lbs.):
United States ....
Philippine Islands

Total

88,534,788 +

855,000 +

6,400 —

89,396,188 +
37,711,564 +

307,195,873
86

85,648,117

355,000

5,591

85,997,526

2,128,232

644,732
159

307,195,959 — 644,891

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name.

Street No.
P. O

JState.

i?

Eatabliahed 1886

"BEST OF THE BEST

»»

^^^^^^±^ A. SANTAELLA & CO.

Office, 1181 Broadway. New York City

FACTORIES: Tampa and Ktp West. Florida

OUR HIGH.OBADE NON-EVAPORATINO

CIGAR FLAVORS

Make tobacco meUow and smooth In charactar
and Impart a most palatable flavor

aAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
EBTUN. ABOMATIZEB. BOX FLAVOBS. PASTE SWEETENEIS

FRIES 6l BRO., 92 Reade Street, New York

muikummwjiivmuiajji^^^^^

Classified Column

The rate foi this column it three cents (3c.) • word, with
a minimum charge of seventy-five cents (75c) payable
strictly in advance.

ii^;ig^!e^<^?^R^ff?r^?!??'^^

POSITION WANTED

CIGAK SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers conmiunicate with nie in reference to worth-while line.
Hugh Donowick, 242 Milnor Avc^ Lackawanna, X. Y.

FOR RENT

30.000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3-story and concreted basement building adjacent to P. R. R.
freight station in York, I'a. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. See A. Kauff-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last PuflF/'
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, Jew wkTcm

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

Hejjistralion, (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' Astociation on each registration.

Note B— If a report on a search of a title necesaitatea the reportinc 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.

NEW REGISTRATIONS

STOCO: — 46,345. I'or all tobacco products. Scranton Tobacco Co.,

Inc.. Scranton. Pa., July 12, 1934.
TANG: — 46,346. For cigar.s. Consolidated Litho. Corp., Brooklyn,

N. Y., July 9, 1934.

TRANSFERRED REGISTRATIONS

MUNGO PARK:— 28,937 (U. S. Tobacco Journal). For cigars, ciga-
rettes and clu'root>. Registered May 21, 1904. by Gronimes &
rettes and cheroots. Registered May 21. 1904, by Grammes &
Kennedy, Chicago, III. Through mesne transfers accjuired by the
Odin Cigar Co., Detroit. Mich., and re-transferred to the Master-
piece Cigar Co., Grand Rapids, Mich., June 11, 1934.

LADINA: — 30,917 (U. S. Tobacco Journal). For cigars, cigarettes,
cheroots and tobacco. Registered Xovember 13, 1905, by American
Litho. Co., New York, N. Y. Through mesne transfers acquired
by the Odin Cigar Co., Detroit, Mich., and re-transferred to the
Masterpiece Cigar Co.. Grand Rapids, Mich.. June 11, \9iA.

DONNA TAMPA:— 37,780 (United Registration Bureau). For ci-
gars, cigarettes, cheroots and tobacco. Registered (October 14, 1912,
by American Litho. Co., New York, N. Y. Transferred by Consoli-
dated Litho. Corp., Brooklyn. X. Y.. successors to the registrants,
to Thompson & Co., Tampa, l-Ma.. July 18. 1934,

EXPLAINS TOBACCO PEOGEAM

Secretary of Ap:ricnlture TTonry A. AVallacc, on
July 31st, fUitliiK'd briofiy the cfToct nationalistic poli-
cies in foreign countries have had on domestic fire-
( urcd tobacco and explained the manner in which the
Airricultural Adjustment Act has helped to li<|uidate
the surplus of this type of tobacco and keep its juo-
<luction nearer the level of consumption while other
uovernmental activities are workinj^ to rebuild the
nation's seriously dei)leted foreijrn trade.

'* Fire-cured tobacco formerly was consumed in
lar<i:e (luantities in foreign (M)untries" the Secretary
told a group of Ilopkinsville, Ky., farmers and busi-
ness men, **but foreign consum})tion has drastically
ileclined in recent years. Exports of fire-cured types
have declined from around 200 million |)ounds in 1!)2M
to below KM) million pounds during the last several
years. The production of competing tyj)es of tobacco
has been increased in many foreign countries, and in
some instances the consumi)tion of the particular prod
ucts in which fire-cured tobacco is used has declined.

Factory representatives of the Medalist fa«'toiy
and Antonio y (leopatra factories were a<'tive in At-
lantic City last week promoting the sale of these brands
with marked success. Additional distribution was ob-
taiiunl, which of course resulted in increased sales to
the consumer, and several of the new accounts have re-
peated, which is very encouraging.

AUGUST 15, 1934

LIBRARY

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phil a., Pa.
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION

LIMA OHIO
A NalioixWide Service

York, Pa.

Chicago, III.

Detroit, Mich.

Wheeling, W. Va.

Illlllllllllll

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA., PA

THE TOBACCO WORLD

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember thjt Regardlei* ot Prie«

THE BEST CIGARS

AMX PACKED i>

WOODEN BOXES

Vol 54

AUGUST 15. 1934

No. 16

UGGESTIONS on a revision of cij^arette tax-
ation, made by John B. Hutson, chief of the
A. A. A. Tobacco Section, as ])rinted in full
in this issue, niav be summarized in the three
followinji; reconunendations: "Three dollars per thou-
sand on cigarettes with a net wholesale price of more
than $4.25 per thousand. Cij>arettes selling at retail
at two i)ackages of twenty for twenty-five cents and
more would fall into this class.

**Two dollars ])er thousand on cigarettes with a
net wholesale price of more than $3 i)er thousand and
not more than $4.2.") per thousand, ('igarettes selling
at retail at ten cents per package of twenty would fall
in this class. The bulk of the sales would probably
come in this group.

**One doUar and forty cents per thousand on
cigarettes with a net wholesale price of not more than
$3 per thousand, j)rovided they are sold in packages of
fifteen cigarettes each. Cigarettes selling at retail at
five cents per package of fifteen would fall in this
class.''

^^^^^^m ^^^^^^M j^^^^^^

CP CJ3 Cj3

OING on to ex])lain his suggestions, Chief
Hutson says: *'The $3 rate for cigarettes sell-
ing to retail for more than ten cents per pack-
age is left in order to insure that the manu-
facturers of standard cigarettes will move their cigar-
ettes into the ten-cent price class and keep them in
that price class. The $2 rate suggested would enable
the manufacturers of the standard cigarettes to sell
their product at a price that would i)ermit a i)ackage
of twenty to retail for ten cents. It is expected that
the bulk of consumers using cigarettes which now sell
at ten cents per i)ackage of twenty and at two pack-
ages for twenty-five cents would turn to this class of
cigarettes. The rate of $1.40 per thousand is sug-
gested in order to encourage the introduction of cigar-
ettes selling at five cents per jiackage of fifteen. It is
expected that a considerable i)roportion of the present
users of granulated tobacco and hand-made cigarettes
would turn to the five-cent cigarettes. It has been
estinuited that between twenty-five and thirty billion
hand-nuule cigarettes were consumed in 1933. When
consumers turn from hand-made cigarettes, they con-
sume more and this would be reflected in a larger con-
sumption of leaf tobacco."

In other words, Mr. Ilutson would retain the $3
tax so that the manufacturers now paying that tax
would Ik» prompted to move into the lower price bracket
to enjoy the $2 tax. The inevitable result would be
that, as far as volume sales are concerned, there would
be two classes of cigarettes on the market, namely,
those selling at ten cents for a i)ackage of twenty and
those selling at five cents for a package of fifteen.

It is highly conjectural whether this would be a
better solution of the situation as regards the co-
ordinated interests of retailer, wholesaler, manufac-
turer, grower and the Government, than would be the
fiat 40 per cent, reduction in all tobacco taxes embodied
in the industry's recent petition to Congress.

Nobody knows how many hand-made, or ''roll
your own," cigarettes are smoked. As a fact. Chief
Hutson 's estimate of between twentv-five and thirty
billion is greatly below that of others who have at-
tempted to determine their number. And just as he
may be in error as regards thi^ quantity of tliese hand-
made cigarettes consumed, so he may be w^rong in
assuming that all who roll their own do so because of
the price of the numufactured cigarettes. Tom Daly,
for instance, waxed highly indignant in his column
in the Philadelphia Eventing Bulletin, over the Hutson
imputation that he made his own smokes because he
couldn't afford the boughten kind. Tom declared that
he had been rolling his own cigarettes for twenty years
because he liked them better.

Ct] Ct3 Ct3

HE ATTENTION of retail tobacco dealers who
are not members of the Retail Tobacco Dealers
of America, Inc., or associations affiliated with
it, is called to the full page announcement
directed to them in tliis issue regarding the Notice
of Nomination to the National Code Authority.
You are entitled to elect one member. The Code
provides for a Code Authority consisting of not
more than ten members. Of these, two members
shall be designated by the respective Code Author-
ities of the retail food and the retail drug trades;
one shall be a])i)ointed by the Consumers Advis-
ory Board of the National Recovery Administra-
tion; six shall be designated by the Retail Tobacco
Dealers of America, Inc., one to represent a national
chain of tobacco stores and five to represent other to-
bacco retailers; and one member shall be representa-
tive of and selected by the non-members of the Retail
Tobacco Dealers of America, Inc., or non-members of
any of its affiliated associations.

In order for ballots to be counted, it must be filled
out and returned not later than August 20, 1934, to
the National Code Authority for the Retail Tobacco
Trade, 726 Jackson Place, N* W., Washington, D. C.

This is intended prinuirily, of course, for retail
tobacconists in whose territories no local association
affiliated with the national organization now exists.
The i)erfect outcome of this balloting would be the
arousing of activities for the establishment of such
local associations where at all possible. And an out-
come just as desirable would be the enlisting of pres-
ent non-members into such associations where they do
exist.

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22. 1909, at the Post Office, Philadelphia. Pa^ under the Act of March 3, 1879.

Tobacco Exports' Big Gain in 1934

How Kerr-Smith Act Operates

KKVIKW ot* tlic tobiU'c'i) export trade of the
riiiteil States l)y the Tohaeeo Division, De-
pa I'tnieiit of Coimneree, based on j)rernninary
data, sliows that the total foreign tohaeeo trade
of the United States (hirin,i>- the lirst six months of
V.)'S4: anionntetl in vahie to $4r),:>:>(),:>r)(), an inci-ease in
vahie of 1)5.7 per cent, over the like period of 19.S3, an
increase of Ml'A per eent. ovei- the like period of 1932,
and within 129..3 ])er eent. of the total foreii;n tobaeco
trade of the lirst six months of 1929.

Kxi)orts of all 1y])es of leaf tohaeeo durinj;' tlie
first six months of \\K\4 lan ahead of the first six
months of liK>3 in volnnie by over 23 per cent., those
of the like i)eriod of 11)32 by nearly ir)..') i)er cent., and
were only ^.'A per eent. nnder those of the first six
months of 1I>2I). The volnme of leaf tobaeco exported
dnrinii the 1931 six months was 21)7, 271, !)28 pounds,
the li)33 period l(JcS,41 1,377 pounds, the 1932 period
179,094,546 pounds, and that of the 1929 period 226,-
U95,94() i)ounds.

Exjjorts of manufacfurod tobacco products during
the first six months of 1934 increased in volume and
value over those of the like i)eriod of 1933. Cigarettes
increased nearly 55.5 i)er cent., chewing to])acco over
6 per cent., smoking tobacco approximately 35 per
cent., and other products 17 jier cent. Total shipments
during the 1934 jjeriod amounted to 1,652,631,000
cigarettes, 845,700 pountls of chewing tobacco, 531,343
l)ounds of smoking tobacco, and 79,451 })ounds of other
products. The total value of manufactured tobacco
l)roducts exported during the 1934 period was $4,016,-
786 as against the 1933 period value of $3,117,!)49. The
increase in value wa> api)roximately 2S.8 jier cent.

The return to American leaf to])acco shippers dur-
ing the first six months of 19.*U amounted to $41,319,-
564, an increase of 70 per cent, in income over the
income from leaf business during the first six montlis
of 1933, approximately 51 per cent, over the same
period of 1932, and approximately 22 i>er cent, under
the value of leal shii>ments during the first six months
of 1929.

The j)rice average obtained for all leaf tobacco
shii)i)ed out of the country during the first six months
of 1929 was $23.34 per lOO pounds, tluit of the 1932
l)eriod $15.21, the 1933 period $14.39, and that of the
1934 i)eriod $19.93. The 1!)30 average jirice was $21.18
and that of 1!)'>1 was $19.07 during the first six months
of these vears. In the 1!)34 period sliirht increases in
values obtained per hundred pounds are shown in
Hurley, dark-fired Kentucky-Tennessee, dark Virginia
and black fats. Decreases ari' >hown in Maryland
and Ohio exi)ort, one sucker, pericpie and stems, trim-
mings and scrai)s.

Blight tlue-cured tol)acco accounts for the most
part for the increase' in volume and the increase in
value when comparinn 19.*>4 with 1!).'>;>. During the
lirst six months of 19.'}4 total exports of bright tlue-
cured tobacco amounted to 1.*>(),06."J,171 pounds, or 66
per cent, in volume of all tyjies of tol)acco exported.
The increase in voIuiik' of bright Hue-cured exj)orts
ovei- the 19.*>3 ])eriod, when 103,778,518 pounds were
exported, amounted to .'!2,2S4,653 jiounds, an increase
of 31 ])er cent. During the 1 !).'».'> i)eriod bright fine-
cured tobacco accounted for approximately 6.'» jier cent,
of all leaf tobacco exported. Tin* average value return
for bright fiu"-cured tobacco during the HKU period

was $24.60 ])er 100 jmuiuls, compared with $16,88 dur-
ing the 1933 })eriod and $20.34 during the like period
of 1932. The return per 100 })()uiids during the first
six months of 192!) was $26.82 per 100 iiounds.

The dark tobaccos accounted for 22.5 j)er cent,
of total exports of leaf during the first six months of
1934, comi)ared with 28 i)er cent, of the total during
the 1933 period. In volume there was a slight differ-
ence in favor of 1933, shipments in that year amount-
ing to 47,063,392 pounds as against 46,554,42() in the
1934 period. Dark-fired Kentucky-Tennessee de-
creased slightlv in volume but increased slii»htlv in
average value and total return. The li)33 jieriod aver-
age was $9.79 i)er 100 for 35,775,568 pounds, while
that of the 1934 jjeriod was $10.18 per lOO for ;;5,(i58,-
896 i)ounds. Dark Virginia expoits increased during
the lirst six months of 1J)34 and totaled 5,642,478
l)Ounds, which averaged $16.30 per 100 as compaied
with 5,206,513 pounds at $15.38 per 100 during the like
period of 1933.

Maryland tobacco exjjorts during the first six
months of 1934 increased 1,337,355 pounds, or 4().4 per
cent, over the like i)eriod of 1933, and totaled 4,219,431
pounds. The return, however, was $2.!)1 per hundred
pounds less than the 1933 period average when ship-
ments totaled $19.14 per 100 pounds. Total shipments
of Burley during the 193>4 i)eriod amounted to 7,140,731
pounds at an average per hundred of $12,66 compared
with 5,200,432 i)ounds in the 1933 period at an average
of $12.27 per 100 pounds.

Exports of stems, trimmings and scraps during
the first six months of 1934 increased nearly 44 per
cent, to a total of 12,725,5()9 j)ounds as against the
1933 period total of 8,841,245 jiounds. The average
per 100 pounds in the 1934 period was $3.80 and that
of the 1933 period $3.84. These shijiments constituted
6.14 })er cent, of total shipments during the 1934 period
and 5.25 per cent, oi' totttl shipments during the like
period ul* 1^33.

Belgian Tobacco Market

The leaf tobacco market in Belgium during the
second (piartei of 1!)34, as reported in trade circles,
was faiily good, the demand for American tobacco
having been satisfactory. American Consul William
H. Beach, in a report made public Ijy the Tobacco Divi-
sion, Department of Coimnerce, states that the upward
tendency of j)rices in the Cnited States, however, re-
stricted transactions to some extent.

Contrary to expectations, fairly large <piantities
of new crop Burley were sold during the cpiarter. This
situation is due to the fact that the tobacco was found
to be of good quality and burns well. A fair amount
of I>urley was shipjied in transit through Antwerp to
Switzerland. Small quantities of bright Virginia have
lu'cn sold in i^elgiiim and the demand at jiresent is
])<)or, notwithstanding the fact that the crop is ex-
pecte<l to be much higher in prices than the l!).*)3 crop.
During the (piarter business in Maryland has been
jnactically nil, owing to lack of olTers from the Cnited
States, At present a strong demand prevails for
medium to good quality t<»bacco.

Since dark -fired eastern and western (Kentucky
and Tennessee) tobacco has uat as yet gone through
the sweat and no otTers are l)eiiig received from the

11 K Kerr-Smith Tobacco Act was passed to-
ward the close of the last session of (Nmgress
and a])proved by the President on June 28. It
j)rovides for a tax of 33 1-3 ])er cent, of the
market ])rice of the tobacco, unless tlie Secretary of
Agriculture determines that a lower rate would best
efi'ectuate the declared ])olicy of the Act, in which case
the rate may be reduced to 25 per cent. The rate of
tax for the current year is 25 ])er cent, of the market
l>rice of tobacco sold. It ai)])lies to all imi)()rtant types
of tobacco grown in 1934, except cigar-leaf. Maryland,
and Virginia sun-cured tobacco. This tax will be col-
lected at the time settlement fop the sale is made. In
the case of sales made through an auction warehouse
or direct to dealers or manufacturers, the amount of
the tax will be deducted from the purchase price. In
the case of other sales, such as mail order sales, the
grower is reciuired to file a return to the Bureau of In-
ternal Revenue.

Tax-payment warrants, which may be used in pay-
ment of the tax, will be issued to all contracting grow-
ers covering the amount of tobacco which they are al-
lowed to sell under contract. It is not necessary for
contracting growers to make a])])lications for these
warrants. The Act j)rovides that adtlitional tax-pay-
ment warrants mav be issued to a limited number of
non-contracting growers. AVarrants cannot be issued
to non-contracting growers in any county covering an
amount of tobacco greater than 6 jier cent, of the
amount covered by warrants issued to contracting
growers. Applications to be used by non-contracting
growers are available in all county agent's offices.

Allotments can be made onlv to those non-con-
trading growers who could not obtain an equitable
base under the contract, and two-thirds of the quantity
allotted to non-contracting growers must be in amounts
of 1500 pounds or less. The latter provision was in-
cluded in order to insure fair treatment to small grow-
ers. The a])plications for tax-jiayment warrants will
l)e ])assed upon by local and county tobacco commit-
teemen. It is our hope that tobacco committeemen
will be reasonable in inter])reting the ])rovisions and
rulings with respect to the Tobacco Act in so far as
is ])ossible, and will make allotments to all those
growers who could not obtain an e(piitable base under
a contract.

At the very beginning of the to])acco program, it

was clearly evident that production must be promptly
reduced, if the growers' condition was to be improved.
In the past, when some growers have reduced their
production, other growers hav^e "signaled full si)eed
ahead" and have doul)led their production. They Iiave
taken advantage of the co-o])ei-ative undertaking in
the hope of securing an advantage over their neight)or.
This practice of the outsider "riding free" while
the co-operator pays the bill has been the greatest
stumbling block in the way of co-operative action in
the past. In developing the tobacco ])rogram we were
determined that the co-oj)erator should fare better
than the non-co-operator. This is why rental and ad-
justment payments were ])rovided to pay those farm-
ers who made higher prices possible.

The improvement in tobacco jjrices as a result of
the success of the first year's efforts, brought new
dangers along with the benefits. Co-o])erative growers
became alarmed. They remembered the history of
past co-operative undertakings. They were too much
in earnest to risk anv chance of destroying the to-
bacco program by the outsider, who might increase
his acreage or the new grower, who minht spread the
territory, because of higher prices resulting from the
concerted action of co-ojierating growers. They ap-
])eared determined to see to it that the benefits of the
program went in the fullest measure to the co-opera-
tors and that the insider continued to fare better than
iliQ outsider.

The Kerr-Smith Tobacco Act was the answer to
a vast number of recpiests for additional protection
from tobacco growers, who weie co-o])erating in the
adjustment program. As ])rices rose, they felt that in
order to hold the ground already gained, and for the
good of the industry, co-operators should be assured
of receiving larger returns than non-co-operators.
Those favoring the Kerr-Smith Tobacco Act contended
that the 25 per cent, tax was not an injustice to the
non-co-oi)erator. They pointed out that they were not
being prevented from growing tobacco. They could
grow their normal acreage or increase it if they de-
sired. Since the program had increased j)rices more
than 25 per cent, they would not be hurt. Proponents
of the Act reasoned that non-contracting growers
would receive as much for their tobacco after paying
the tax as they would without the tax had no tobacco
program been jmt into operation.

Corn Cob Pipe Code Approved

(Continued on Page 17)

Thi Tobacco World

CODK of fair comj)etition for corn cob pii)e
makers has been approved by the XKA, to be-
come effective August 19. Th«' Administra-
ti<»ii is not convinced, however, that the mini-
mum wage rates in the Code are just what they should
Im'; and in the ord<'r of appioval, it was provided that
a further study of these rates should l»e made and a
report filed with the Administrator within sixty days
from the Code's elVective date, for the purpose of de
termining the advisability of increasing them.

The minimum wages established by the Co«le are
'll\-2 cents an hour for males ami 22^^ cents for fe-
males. In his letter to the President, informing him
that the Co<le had been approved, the Administrator
said that "whih' this wage appears to be low, it is
pointed out that, when compared with the wages paid

August IS, 1934

prior to this (\)de, which were 19 cents ]K'r hour for
males and 13.8 cents for females, the wages under this
code represent a substantial increase to the em-
ployees. ' '

Provision is made for a 4()-hour maxinnim week,
with the exception of one period, not to exceed four
weeks, in each six months, during which time em-
]>loyees may be ]>ermitted to work forty-eight liours
per week ])rovided they are paid at lea^t time-and-a-
half for all hours in excess of eight hours a day and
fortv hours a week.

In 1929 and 1930, employees in this industry were
worked fifty-one hours a week.

The Code Authoritv will consist of three members
selected bv the industrv. Three Administiation mem-
bers, without vote, may also be appointed.

MIA.

JOBBERS VISIT G. H. P.

p]CENT visitors at the G. H. P. plant, all of
them inteiestod in tlio distri])ution and sales
of Kl Producto and La Azora, and all enter-
tained bv 1). A. Jenks, assistant sales manager,
were: John Sclni'lick, president of Schnlick-Taylor Co.,
Wheeling, AV. Va.; Phil Knrman and Ben Barman, of
D. Kurman Co., Milwaukee, Wis., on their way back
home via Detroit after a trip to New York; Al Leh-
mann, president of Kearney-Lehmann, Buffalo, on a
two-da vs' visit: and "(lohlie" Oold])erK, manager of
the Max Snvder Cut Kate Drug Stores in St. Paul,
Minn., who stopped in with Mrs. Goldberg on their
wav to the shore.

BAYUK BREVITIES

AVK MITTLKM AX, salesman for Amster Kirtz
Cigar Co., Cleveland distributor, si)ending his
vacation in the Kast with Mrs. Mittlenian, vis-
ited the Bayuk phint and was amazed by what
he saw. Dave is doing a yeoman's share in the job of
keeping Phillies to the forefront in the Cleveland terri-
torv . . . Houtz T<)])acco Co., Sunbury, Pa., is setting
a fast stride on Phillies and reports a big demand in
that sector ... In the Norfolk, Va., territory, the Old
Dominion Tobacco Co. is meeting with such great suc-
cess that it is constantly increasing its standing order
re(iuirements with the factory . . . Myers-Cox Co., of
Dubuque, Iowa, has been added to the list of Bayuk dis-
tributors, is making a very ausi)icious start, and mem-
bers of the organization are all keyed up to corral the
potential business which the merit of the ])roduct jus-
tifies.

Mr. John Wagner, of John Wagner & Sons, is
spending some time in Maine, where he is enjoying
the splendid fishing afforded in tliat section of the
countrv. He expects to return the latter part ot

August.

John Pajnx'ro, ])opular member of the staff of
Yahn & McDonnell, journeyed to Barnegat Bay a few
days ago with fellow members of the trade and re-
turned home witli the first fish, the smallest fish and
the largest fish. John's largest fish was a five-pound
weakfish, which was also about the last fish caught.

The Monticello cigar, cigarette and smoking to-
bacco, which is controHed by John Wagner & Sons, is
making great gains in i)oi)ularity, as well as their
Wauner No. 3 brand of smoking tobacco.

Mr. Alvaro Garcia, of Garcia y Vega, was in town
last week visiting the distributor of his brand. The
Garcia y Vega has been showing a splendid increase
in sales in this territory during 1934.

" The Wagner brand of fine cigars has been ex-
periencing an unusually heavy increase in demand dur-
ing the past two weeks, according to Mr. White, who
has just returned to his desk after an absence of two
weeks on account of a tonsil operation, and he was
greatly pleased with the progress the brand is making.

William A. Anderson, sales representative for the
ciirar department of the American Tobacco Company,
is doing a good job in Philadelphia territory, through
Yahn & McDonnell, local distributor of Antonio y Cleo-
patra, Henrv Clay, (\jrona and Bock. All these brands
are showing splendid activity, and the new size of
Antonio y deopatra with the ])unctured head is meet-
ing with a particuhuly good demand.

The Royalist factory, south Second Street, reports
business running along in good shai)e and increasing
steadilv. In addition to the south Second Street fac-
torv, thev are also operating a branch factory in Perth
Anibov, which is assisting materially in heli)ing keep
the demand for the Royalist brand supplied satisfac-
torilv.

George Stocking, of Arango y Arango fame, was
in town on Fridav visiting the local distributor of their
brand, the Don S'ebastian, distributed by John Wagner
& Sons. I. B. White, manager of the cigar department,
states that the Don Sebastian is gaining new friends
every dav in this territory, and the new sizes recently
%lded to* this line are meeting with an exceptionally
fine demand.

Thi Tobacco World

IT TAKES A MAN lik* "BUI" Horn, who won the Gold Cup in 1 932, to wind a big racing
hydroplane up to 3000 r. p. m. and hold her to a speed of 60 to 70 miles per hour . . .
for mile after mile. And when he's tired Camels quickly increase his vim and energy.

\T^\i yi f T fl^C *^^^ delightful way of ^^tunting
I ^^ W LiJu JLinij on^^ your flow of energy

Experience of

Camel Smokers

confirmed by Science

A famous New York research laboratory re-
veals that smoking a Camel produces a defi-
nite increase in your flow of natural energy.
The effect is delightful, completely natural.

Many smokers have learned of this "ener-
gizing effea" in Camels for themselves. "Bill"
Horn, winner of the gruelling Gold Cup race,
refers to his experience in these words:

"The man who drives a Gold Cup winner
needs the last ounce of energy he's got. After
a championship race I 'break out' my pack of
Camels quickly, believe me ! In no time at all I

get a 'lift' and everything is all serene ! It's a
swell feeling — just to smoke a Camel and be your
real self again ! That's what I do whenever I feel
played out, and Camels never get on my nerves."
Tr>- this pleasant and convenient way of
ironing out fatigue and increasing vibrant
energy. Turn to Camels and learn the truth
of the saying, "Get a lift with a Camel." Like
to smoke steadily? Smoke as much as you
wish! Camels are made from finer, MORE
EXPENSIVE TOBACCOS than any other
popular brand. They do not get on the nerves.

CamaU ar« mad* from »ner. MORE EXPENSIVE TOBACCOS
— Turkish and DomMtio — than any othar popular brand.

CAMELS

Costlier

Tobaccos
never get on

your Nerves

64

GetaLlfX
irith a Camel !

99

''to

'5r/,

•~^r.

Copyrlihl, 1931, R. J. Ileyiwld* Tubtti* CoiupaHy

August IS, 1934

Expanding Domestic and Foreign

Markets for Tobacco

By J. B. HUTSON

YEAR AGO, as the tobacco markets opened,
a distressing emergency faced tobacco grow-
ers. Considering all types, the two previous
crops had averaged only 9 cents per pound.
The 1931 and 1932 crops of flue-cured tobacco aver-
gaged only 9.5 cents i)er i)ound and as the 1933 mar-
keting season advanced, it appeared that the experi-
ence of the two previous years was to be repeated.

Such a price, for three successive years, could
mean nothing short of bankrui)tcy and ruin for thou-
sands of growers who are dependent on their tobacco
crop for their major source of income. The situation
was desperate. Something had to be done quickly.
Increased prices for the crop then going to market
was a necessity. There was no time for delay or to
consider all the angles of a comprehensive long-time
program. It was essential to put into inmiediate oper-
ation a plan that would correct the most obvious evil
and bring rapid relief. A surplus of 900 million
pounds of tobacco of all types, in excess of normal
supplies, was hanging over the market as the most
important price depressing influence of the moment.
The first problem seemed to be one of reducing as
rapidly as possible the total supply of tobacco to nor-
mal needs.

Tobacco growers pledged their wholehearted sup-
port to the Agricultural Adjustment Administration
in a program to correct this over-sup])ly situation. A
program was worked out with the assistance of to-
bacco growers, whereby the 1934 crop would be cur-
tailed through voluntary agreements, in the form of
contracts between individual growers and the Secre-
tary of Agriculture. Processing taxes were levied on
tobacco as it was manufactured, to raise money with
which to pay co-operating growers for reducing acre-
age and adjusting the production of tobacco to mar-
ket requirements.

The majority of tobacco growers joined in the
program in a remarkably prompt way. Over 90 per
cent, of all tobacco growers signed contracts to reduce
the 1934 crop to one billion pounds of tobacco. This
figure was as much below annual consumption as the
1933 crop was above annual consumption. It is grati-
fying now as the 1934 markets open to see how well
tobacco farmers have kept their promise and have
fulfilled their pledge.

As a result of this splendid response from tobacco
farmers, it was possible to negotiate marketing agree-
ments with the manufacturers, under which they
agreed to pay higher prices for the 1933 crop. The
Agricultural Adjustment Administration was enabled
to capitalize on the promised reduction for the 1934
crop in terms of higher prices for the 1933 crop which
was then going to market.

It is estimated that the tobacco program increased
the market receipts of the 1933 crop by approximately
fifty million dollars. Growers received 179 million
dollars for the 1933 crop from sales on the market.
In addition, farmers are receiving during the current
marketing year approximately twenty-eight million

dollars in rental and benefit payments, making a total
of 207 million dollars. This is close' to what to-
bacco growers received for their 1930 crop and is
only slightly below the average for the last ten years.
Surely, your co-operative eiTorts have been tremend-
ouslyworth while when you look back to a 107 million
dollar total tobacco income for the 1932 crop. P^hie-
cured tobacco growers received considerably more in-
come for their 1933 crop than they had received for
the two previous crops combined.

During the past year, tobacco growers have dem-
onstrated that they can control product if)n. They have
proved that they are willing to join together with their
neighbors in i)roducing the (plant ity of tobacco for
which there is a demand. They have shown that they
are willing to make such adjustments in their i)lans
as were necessary to meet changing conditions. AVe
can definitelv sav that tobacco growers will work to-
gether in solving the production i)hase of their prob-
lem.

This brief recital of the past year's co-operative
undertaking is the tobacco grower's answer to the cry
of distress and the appeal for innnediate action to in-
crease the income of tobacco growers for the 1933 crop
which they had already produced and which was ready
to go on the market.

Adjusting production to market needs is only one
phase of the problem. Another ])hase, that of increas-
ing consumi)tion both at home and abroad, is one to
which we have given a great deal of attention during
the past year and one to which all of us should give
more attention during the ])eriod just ahead. It is
this part of the problem that I want to talk with you
about today.

There is the problem of increasing domestic con-
sumption. In recent years domestic consumption has
been hindered by two important causes. First, to-
bacco in the United States, as well as in most other
countries, is an important source of government rev-
enues, and to that extent, j)rices of tobacco products
have been advanced. This has tended to restrict con-
sumption. Second, the organization of the industry
in this country is such that manufacturers have been
able to take a larger and larger proportion of the
consumer's tobacco dollar. This, too, has had an in-
fluence toward restricting consumption. It is prob-
able that there is a relationship between these two
aspects of the problem. The tobacco tax system may
be such that it encourages monopolistic tendencies in
the industry, which, in turn, make possible wide mar-
gins of profit for manufacturers, which, in turn, make
for reduced consumption.

The tobacco tax question has been a **live issue"
in the minds of tobacco farmers in some regions dur-
ing the past few months. It is to your advantage to
see to it that any i)lan for reducing tobacco taxes be
conceived wisely and that it be drawn so as to result
in a maximum increase in consumption. Your best
interest demands that you help develop any tax reduc-
tion program in the same intelligent and co-operative

Th4 Tobacco World

makes everyone feel better

makes everything taste better

—does something good for

tobaccos too . • .

There is Sunshine in your Chest-
erfield— plenty of it — the Sun-
shine Chesterfield tobaccos get
from our own Southland, the best
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Even the bright golden color
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the sun puts into them.

Blend them with the right
kinds of Turkish and you have
Chesterfield. They Satisfy.

OTC

^19)4. LiccETT & Mvws TosACCO Co.

August 15, 1934

manner as von liandlod your adjiistnicnt program, so
that the rights of tobacco growors will be fully pro-
tected and that a permanent and stable improvement
in the income of tobacco "rowers will be brought about.
This is the great and only concern of the tobacco ad-
ministration' in our etTorts to assist you in attacking
your problem through a comi)rehensive and long-time

plan.

An attempt was nuide during the last session ot
Congress to obtain a reduction in tobacco taxes. The
two following proposals were widely discussed:

(1) A proposal by the manufacturers of so-called
10-cent cigarettes whereby a reduction of 10
per cent, would be made in the tax rate appli-
cable to lO-cent cigarettes— a reduction from
$3 to $2.70 i)er thousand cigarettes.

(2) A proposal by the manufacturers of standard
cigarettes whereby a reduction of 40 per cent,
would be made iii the tax rates a])iilicable to
all tobacco products, lender this i)roposal,
the tax on cigarettes would l)e reduced from
$3 per thousand to $1.S0 per thousand, the tax
on manufactured tobacco and snuiT would be
reduced from 18 cents i)er ])ound to 10.8 cents
per pound, and the tax rate on cigars would
be reduced correspondingly.

It appears that each groui) of manufacturers, in
effect, is asking for such a reduction in tax as will en-
able them to sell cigarettes at 10 cents per i)ackage
Avith a desired margin of profit. The i)lan of the man-
ufacturers of the standard brands ]»robably would re-
sult in the bulk of the cigarettes selling at 10 cents
per package, with some sales at two ])ackages for 15
cents. The plan of the manufacturers at 10 cents ciga-
rettes probably would result in most of the cigarettes
selling at two-*for-25 cents, but with consideraV)le num-
bers selling at 10 cents i)er ])ackage.

The arguments presented in behalf of the 10 per
cent, reduction made by manufacturers of 10-cent ciga-
rettes were based ])rimarily upon the princii)le of a
''graduated" tax according to the value of the i)rod-
uct. Those favorable maintained that the existence of
the 10-cent cigarette has created a desirable competi-
tive situation in the industry; that tol)acco growers
have been provided with a larger market outlet for
tobacco and have received higher average ])rices for
their tobacco, and that cigarette consumers have i)aid
lower prices for their tobacco. They pointed out that
the 10-cent cigarette bears a heavier burden of tax
in proportion to selling price than does the standard
cigarette, and that the i)resent tax represents (JO ])er
cent, of the retail price of the lO-eent '-igarettes com-
pared with 48 per cent, of the retail price of standard
cigarettes. It was maintained that even with the re-
duction re<iuested the 10-cent cigarette would still be
taxed at the rate of 54 i)er cent, of its retail ])rice.

The arguments presented in behalf of the "hori-
zontal" tax reduction advanced by manufacturers of
standard cigarettes are that a graduated reduction
would, in reality, be a "subsidy" on lower-])riced ])rod-
ucts; that a tax reduction so small as that recpiested by
the manufacturers of 10-cent cigarettes would not re-
sult in any reduction of prices to consumers or any
increases in consumption; that to effect substantial
reductions of prices and increases in consumption, it
will be necessary to have a reduction of at least 40
per cent, in all tax rates. It was stated further that
a change in tax rates which would alTect favorably th

10

competitive position of the i)resent 10-cent cigarettes
in relation to the standard cigarettes, would affect ad-
verselv the prices paid to farmers for the better ciga-
rette grades of tobacco. In ex])lanation, it was argued
that the higher-priced cigarette grades are used in
standard cigarettes and the lower-priced grades in 10-
cent cigarettes.

Let us examine each of these i)lans and see what
there is in them that would benefit tobacco growers.
The first, that of reducing the tax rate on 10-cent ciga-
rettes, might or might not be necessary in order to in-
sure the maintenance of the 10-cent cigarette on the
market. It probably would be necessary within a
year or tw^o if tobacco prices continue to advance. The
present margin received by these manufacturers, from
which thev must pay for the cost of tobacco, manufac-
turing costs and selling charges, is $1.11) per thousand
cigarettes, or about 2.4 cents per package of twenty.
Tliis is exactlv half of the present margin of the man-
ufacturers of standard cigarettes from which they pay
for the same items.

If it is a (luestion of reducing the tax rate on the
10-cent cigarette in order to keep a cigarette of that
class on the market, I believe that such a reduction
would be to the advantage of tobacco growers. More
comi)etition and not less is needed in the cigarette in-
dustrv. Also, many consumers probably would turn
to some other product if 10-cent cigarettes were not
available and this change would i)r()l)ably cause them
to use less tobacco.

The 40 per cent, horizontal reduction is more far-
reaching. It undoubtedly would result n\ some imme-
diate increase in consum])tion. Whether or not this
increase was lasting would de])end upon, first, whether
the reduced prices were continued, and second, whether
it tended to make for greater concent rai ion of the in-
(^strv in the hands of a few compani^-s. Its propo-
nents'contend that it would result in standard ciga-
rettes selling at 10 cents ])er ])ackage and the present
10-cent cigarette selling for two j)ackages for 15 cents.
The question of whether consumers will buy cigarettes
in considerable quantities at two ]mckages for 15 cents
when more highly advertised cigarettes sell at 10 cents
per package would be an experiment. Should the
two for 15 cents price ])rove to be uni)oi)ular, the in-
crease in consumption might l)e relatively small.
% Then, it re])resents a continuance of the present
fax system on tobacco. We know that under this sys-
tem the cigarette industry has been concentrated in
a relatively few com])anies. In fact, it has been fre-
quently pointed out that the cigarette manufacturing
industry has monopolistic tendencies. We know from
experience that comj)etition in the jmnhase of tobacco
is desirable and that it is dangerous to tobacco growl-
ers to allow too great a concentration in tlie manufac-
turing branch of the industry.

We have given careful study to the general idea
of a reduction in tobacco tax<'s over a period of sev-
eral months and have worked out some changes in
both ])lans suggested by the manufacturers that we
believe would tend to protect the interests of tobacco
growers. If a substantial reduction in the tax rate
on cigarettes can be made, we suggest that considera-
tion be given to the following:

$3 per thousand on cigarettes with a net
wholesale pric<' of more than $4.25 per tlujusand.
Cigarettes si'Uing to retail at two packages of
twentv f(»r 25 cents and more would fall into this

!<^wi:2u;::j^j;i:^MwiS»S:

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class.

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The Tobacco World

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It

$2 per thousand on cigarettes with a net
wholesale price of more than $3 per thousand and
not more than $4.25 per thousand. Cij>arettes
sellino- to retail at 10 cents per packaj^e of twenty
would fall in this class. The bulk of the sales
would probably come in this group.

$1.40 per thousand on cigarettes with a net
wholesale price of not more than $3 per thousand,
provided they are sold in packages of iifteen ciga-
rettes each. 'Cigarettes selling to retail at 5 cents
per package of fifteen would fall in this class.

In our judgment, the above rates would more
nearly accomplish the objective of tobacco growers
than anv other combination of rates that has ])een pro-
posed. *The $3 rate for cigarettes selling to retail for
more than 10 cents per package is left in order to in-
sure that the manufacturers of standard cigarettes
will move their cigarettes into the 10-cent price class
and keep them in' that price class. The $2 rate sug-
gested would enable the manufacturers of the stand-
ard cigarettes to sell their i)roduct at a price that
would permit a package of twenty to retail at 10 cents.
It is expected that the bulk of consumers using ciga-
rettes which now sell at 10 cents per package of twenty
and at two packages for 25 cents would turn to this
class of cigarettes.

The rate of $1.40 per thousand is suggested in
order to encourage the introduction of cigarettes sell-
ing at 5 cents per package of fifteen. It is expected
that a considerable ])roportion of the ])resent users of
granulated tobacco and hand-made cigarettes would
turn to the 5-cent cigarettes. It has been estimated
that between twenty-five and thirty billion hand-made
cigarettes were consumed in 1933. Wiien consumers
turn from hand-made cigarettes to manufactured ciga-
rettes, they consume more and this would be reflected
in a larger consumption of leaf to])acc().

One of the advantages of this ])lan is that it would
offer both a 5-cent and iO-cent cigarette on the market.
Since the aims of both groups, so far, indicate a strong
desire to be allowed to sell a 10-cent ciirarette, at a
satisfactory margin of profit, unquestionably the 10-
cent price is popular. It seems reasonably certain that
a tax reduction plan which makes avaihible the stand-
ard brands at a 10-cent price, and which keeps them
there, would be favorable to increased consumption of
cigarettes and a larger domestic market for the ciga-
rette grades of flue-cured and Burley tobacco. Coupled
with the standard brands at 10 cents, in order to get
maximum consumption of cigarettes in our domestic
market, it is believed that a j^opular companion would
be a 5-cent package of fifteen cigarettes. This forms
the basis of a plan, embracing the best of the two ideas
already suggested, which we firmly believe promises
the largest income for tobacco growers at the present
and also for a long number of years. It is reasonable
to think that a package of fifteen cigarettes for 5 cents
would more likely be popular than two packages of
twenty cigarettes for 15 cents.

The plan presented by the 10-cent manufacturers,
if adopted, probably would enable them to obtain
larger profits than they obtained last year or are ob-
taining this year. The plan presented by the manufac-
turers of standard cigarettes probably would enable
them to obtain larger profits than they obtained last
year or are obtaining this year, taking into account
the increase in consumption. The plan outlined above
would permit each group of manufacturers to obtain

za

profits at least equal to the average profits that they
will obtain for 1933 and in 1934. If consumption should
increase as some have indicated that they thought it
would, profits would be increased above present levels.
It has been claimed by some advocating changes
in tax rates that manufacturers' margins should be
larger so that larger returns could be paid to tobacco
growers. Our observation is that there is but little
or no relationshij) between the prices i)aid to tobacco
growers and the margin received by manufacturers.
During some years when leaf tobacco prices and other
costs have been lowest, cigarette prices have been ad-
vanced. This occurred in 1931. Our observation is
that tobacco manufacturers follow practices similar to
those followed by other buyers; that is, they pay what
is necessary in order to get the kind of tobacco that
thoy want, and sell cigarettes at a price at which they
believe they can obtain the largest prolits.

Some have indicated that they were fearful that
the sale of cigarettes in two price classes might affect
adversely the prices of the better grades of tobacco.
The plan outlined above i)robably would result in con-
siderable shifting from smoking mixtures and hand-
made cigarettes to manufactured cigarettes. It is our
observation that higher prices are paid for the grades
used in manufactured cigarettes than are paid for
those used in other classes of products. There is some
difference in the prices paid for the tobacco used in
the standard cigarettes and that used in the 10-cent
cigarettes, but most of the difference in the cost of the
tobacco in these two classes of products is due to the
larger quantity of imported tobacco used in the stand-
ard cigarettes. Consequently, the i)lan for two price
classes of cigarettes should cause a slightly greater
advance in the prices of the better grades of tobacco
than of the lower grades.

We have no quarrel with tobacco manufacturers
because of the profits that they have been able to make,
so long as these profits are not obtained at the ex-
pense of other groups in the industry. But when it
appears that extra profits are being taken at the ex-
pense of tobacco growers and that the present system
of taxing tobacco products is aiding them in doing so,
we believe it is high time for tobacco farmers to be-
come interested in helping to change the tax system
for their ovm protection. A great deal of evidence
can be offered to show that a high flat tax rate and fair
prices for tobacco seem to ** groove'' cigarettes into a
one popular-priced package.

In 1919, the tax on cigarettes was placed at $3 per
thousand, where it has remained until the present time.
During the period from 1919 to 1929, Hue-cured and
Burley tobacco, from which cigarettes are made, sold
at an average of more than 20 cents a pound, farmers'
weight. The price of practically all cigarettes sold
during this same time was at the 15-cent level or above.
The 15-cent cigarette ay)parently afforded a wide nuir-
gin of profit to the manufacturers, as evidenced by
their annual profits during these years.

Following the imposition of the $.3 tax rate, prac-
tically 95 per cent, of the cigarette business was con-
centrated in the hands of four big companies. This
concentration of the cigarette business into the hands
of a few heavily capitalized corporations left them with
supreme power, and the farmer with little or no power,
over prices of cigarette types and grades. Minimum
competition — and all of this eager to **buy as cheap
and sell as high as they could" — finally drove the 20-
cent average for cigarette types down to the ruinous
level of approximately 11 cents for the 1931 and 1932

The Tohmeeo World

TO RETAIL TOBACCO DEALERS

NOTICE OF ELECTION

Retail tobacco dealers who are not members of the Retail Tobacco
Dealers of America, Inc., or any of its affiliated Associations are entitled
to elect one (1) member to the National Code Authority,

Therefore, if you are not a member of any of the aforementioned
Associations, you are entitled to ballot and select a man of your choice
to represent you.

The Code Provides :

"SECTION 1. There shall forthwith be constituted a Code Authority consisting of not more
than ten (10) members selected as follows:

••Two (2) members shall be members respectively of the retail food and grocery trade and of the
retail drug trade engaged in the sale at retail of tobacco products and each shall be designated by the
Code Authority established by the code of fair competition for his trade.

"One (1) member shall be appointed by the Consumers' Advisory Board of the National Recov-
ery Administration.

••Six (6) members shall be representative of the retail tobacco trade and shall be designated by
the Board of Directors or the Executive Committee of Retail Tobacco Dealers of America, Inc. One of
the said six (6) members shall represent a national chain of tobacco stores and five (5) of the said six
(6) shall represent other tobacco retailers.

••One (1) member shall be representative of and selected by the non-members of Retail Tobacco
Dealers of America. Inc., non-members of any of its affiliated associations and shall be designated pur-
suant to a plan which shall be submitted to the Administrator for his approval by the other members
of the Code Authority within fifteen (15) days after the effective date hereof."

In order for your ballot to be counted, it must be filled out and returned to this office not later than

August 20th. 1934.

National Code Authority for The Retail Tobacco Trade

726 Jackson Place N. W.

Washington, D. C.

Louis Huck,
508 Liberty Ave.,
Pittsburgh, Pa.

Sidney B. Flashman,
70 Scollay Square,
Boston, Mass.

NOMINATIONS

p. S. Rossiter.

2052 East Fourth St.,

Cleveland, Ohio

Daniel Crean,
256 West 57th St.,
New York City, N. Y.

Edward Snyder,
521 Fifth Ave.,
New York City, N. Y.

Joseph Peretti,
993 Boylston St^
Boston, Mass.

A. F. Gundlach,
90 State St.,
Albany, N. Y.

Clifford H. White,
89 East Ave.,
Rochester, N. Y.

Lloyd S. Graham,
131 Delaware Road,
Kenmore, N. Y.

Fred N. Grafer,

155 Fifth Ave.,

New York City, N. Y.

Dave Jelling,
486 Clinton Ave^
Newark, N. J.

H. S. Smith,
Newport News, Va.

BALLOT

The undersigned, hereby representing himself to be a member of the Retail Tobacco Trade and that he is not « ««™ber of
ReUU Tobacco DeaTer. of America, Inc.. or any of its affiUated associations, hereby designates the foUowmg P^^o" Jo be a member
of S.e Code Authority representative of members of the ReUU Tobacco Trade who are not members of Retail Tobacco Dealer, of
America. Inc., or any of its affiliated associations.

ADDRESS

AiiIjic H^^ .„...r, -^— ^— .. . ,,,. ■ .-^-— ,..^.-.— ^— ....— ' —

Thtr^Jtsert the nam7a,^dd^»"^r^ne'^^ persons, or of any other person properly quaUfied and willing to

•ct, whom you may care to designate)

(nmme)

Return Ballot to

NATIONAL CODE AUTHORITY

for the

RETAIL TOBACCO TRADE

Before August 20, 1934

726 Jackson PUce. N. W.

Washington, D. C.

(address)

(If your business is conducted under any name other than that above
signed insert here style under which your business is conducted.)

August 15, 1934

iS

crops. It was ratlior aiuaziiii»\ in view of llicse low
])ricos to i»iowors, to see these inanufaeturers increas-
iiii»- their c'ijiarette prices (hiriui;- these years, eveiitu-
aliv from ^6 to ^i)K) per thousand wholesale.

Tliis tobacco history reveals a real need for a to-
bacco tax system that will help not only to increase the
domestic consumption of cii»arettes but that will at
the same time be favorable towards greater competi-
tion in the manufacturinu" branch of the industry,
instead of aiding- manufacturers towards monopolistic
control.

Other tax reductions that miirht hel]) increase con-
sumption to some extent are on chewini»- tobacco and
low-])riced cii>ars. Time does not permit a discussion
of all phases of the i)rol)lem but we believe that care-
ful consideration should be given to the tax rates on
these two products.

The i)roi)osal I have outlined is my ])ersonal con-
viction based u])on a i)rolon.i'ed iniiuiiy into all the
phases of the tax (piestion. ri)permost in my mind
in examining and re-examining the various jiroposals
that have been suggested, has been the economic wel-
fare of tobacco growers. I do not assume to state
administration policy on this very complex matter.
Other departments of (Jovernment have an interest in
what is done. It is the ])rerogative of Congress to deter-
mine what is best and proper and, as your represen-
tatives, legislate accordingly.

I feel that much ])rogress has been made in recent
months in bringing the tax (juestion before members
of Congress and other (Jovernment officials. An oj)-
portunity exists to continue the elTorts in the next
session of Congress and, with the connnon objective
of bringing aid to tobacco growers, I am hopeful that
we can all agree upon a sound i)roposal that will do
the job. I tlierefore urge you people to continue your
consideration of this question; discuss it among your-
selves and, at the proper, time, join together with the
tobacco growers of other regions in advocating the
adoption of the proj)er legislation.

Almost half of the total tobacco croj) and more
than half of the flue-cured crop is consumed in foreign
countries. The question of increasing exjwrt outlets
is receiving our most careful consideration. It is esti-
mated that in 11K32 consumers in foreign countries used
between 125 and V)i) million pounds of foreign-grown
tobacco that would not have been used except for trade
restrictions of various kinds. Without these restric-
tions, an e(pial (piantity of tobacco from the United
States would have been used. These disi)lacements
have been taking jjlace over a jicriod of years and it
is our task to helj) correct this situation as quickly
as ])Ossible.

Two steps have already been taken in this con-
nection. First, the increase in the i)rice of gold dur-
ing the i)ast year from $20.07 to $35 an ounce has in-
creased the purchasing jiower of foreign currency in
relation to the American dollar and has thus made
our tobacco far cheaper in terms of foreign currency.
This made it possible for export buyers to keep step
with domestic buyers last season. This will also make
it possible for tliem to advance jirices materially this
season. Second, we have been able to bring about
some increase in takings by foreign countries in return
for permission to sell wines and licpiors in the United
States.

We are just beginning a third move in this same
direction. Cnder the new tarilT act passed at the last
session of the Congress, the President is authorized
to enter into trade agreements with foreign countries

to reduce or increase any existing tariff rate by as
much as 50 per cent. This means that we can nego-
tiate with foreign countries and agree to remove trade
restrictions on some of their goods if tliey will agree,
in turn, to remove trade restrictions and take more of
our i^roducts. In this bargaining we are giving care-
ful attention to tobacco, since it has been displaced
in foreign countries in considerable (piantities in re-
cent vears because of trade restrictions.

AVe hope to regain at least some .)f the recently
lost export trade. Consumers in most countries in
which our tobacco has been used ])refer it because of
its aroma, taste, elasticity, and other desirabk' <iual-

ities.

We hoi)e to be able to offer some inducements in
order that foreign governments may be able to again
])ermit consumers to have the ])roducts which they
desire. Progress may be slow but carefully exi)loring
all ])()ssibilities, we believe that some further increase
in foreign consumption can be brougiit about. Al-
readv there has been a nuirked increase in the ex])orts
of some tyi)es of tobacco, i)articularly Hue-cured, and
during the coming months we shall be giving more
and more attention to the making of further gains.

Unsettled world conditions make it impossible to
even attemi)t a forecast as to what nuiy be accom-
j)lished in recai)turing America's exjmrt outlets for to-
bacco. I believe that there are some op] lort unities.
AVe should not, however, rely too much upon the i)0s-
sibilitv of any inunediate expansion of foreign tak-
ings of the export types of tobacco. Such agreements
as^may be develoj)e(l will, of necessity, recpiire time to
negotiate. It will not be an immediate, rai)id ])rocess.
Tobacco growers are still faced with the task of de-
termining, realistically, just what consumption re-
(juirements will be at home and what can be sold
abroad. There is a danger in being unduly optimistic
on both scores. Orderly adjustment must continue or
else new surpluses will develop to lead us into fresh

disasters

Expanding the domestic and foreign markets for
tobacco are the next steps in increasing the income of
tobacco growers. You have a responsibility for the
success of these undertakings, just as definitely as in
the adjustment program to reduce price-depressing
surpluses. Your co-operation, your good judgment
and your constructive action on these two problems
are equally as inq)ortant as in the success you have
attained along another front during the })ast year.

The foregoing is the text of an address by J. B. Ilulson. Chief cf
Tobacco Section, Agricultural Adjustmnit Administration, at the Annual
Tarmers Con-.rntion, RaJcigh. \. C, on August i.

TOBACCO EXCHANGE OPENING

The New York Tobacco Exchange, located at !>0
Broad Street, New York City, announces its formal
ojiening on Wednesday, August 15, VX\A. Those in-
terested w<*re cordially invited to inspe.-t the trading
floor any day prior to oi)ening.

14

RINEHART ADMINISTRATION MEMBER

Robert E. Rinehart, vice-president of Frank Pres-
brey Company, 247 Park Avenue, New York, who ha-^
had long experience in news])aper and advert isinu"
work, lias been appointed administration member of
the Code Authority of the cigar manufacturing indus-
try, NRA announced today.

The Tobacco World

PUBLIC HEARING ANNOUNCED

PUBLIC hearing will be conducted August 21,
by Deputy Administrator C. W. Dunning, in
tiie Mayflower Hotel, on a proposed code of
labor provisions for the cigarette, snufT, chew-
ing and smoking tobacco manufacturing industry. It
is proposed to establish a 40-hour maximum week and
an 8-hour day. In cases of emergency, longer hours
may be worked; but overtime at the rate of time and
a third must be paid.

Engineers, firemen and shipping employees would
be permitted to work 44 hours a week and 9 hours a
day ; and watchmen may be worked 56 hours a week.

A 48-hour week would be provided foi- em])loyees
working on assignments connected with the handling
and prizing of green leaf tobacco during the leaf buy-
ing season.

Executive, managerial and supervisory employees
would not be subject to a limitation of hours.

A minimum wage of 40 cents an hour would be
provided for factory or mechanical workers, or artis-
ans. Hangers, stenimers, searchers, pickers and those
cniplovees engaged in the processing of plug and twist
manufacture would be paid, for those who work upon
liourlv rates, not less than 25 cents an hour.

Provision would be made for the payment of a
minimum of 25 cents an hour to learners.

Clerical or office help would be paid not less than
$15 a week, except that office boys and girls would be
paid at a rate not less than 80 per cent, of the regular
niinimum wage. Watchmen would be paid not less
than $18 a week.

GEORGE AND GRACIE FROM LONDON

George Burns and Oracie Allen, vacationing in
Euroi)e, were guest stars in the Variety Hour of the
British Broadcasting Corporation Saturday, August
11. Their part of the program was short-waved to
the United States from London and heard over a
WABC-Columbia network from 4.30 to 4.45 P. M.,
Eastern Daylight-saving Time.

The Variety Hour is considered one of the out-
standing programs of the Britisli Broadcasting Cor-
poration. The leading talent of both England and the
Continent are presented to the English radio audience

in this show.

Burns and Allen w^ill return to the United States
the first of next month for their new program, "The
Adventures of Oracle," which starts September 19
<.ver the nationwide network of the CoUnnbia Broad-
casting System, sponsored by The General Cigar Com-
pany.

TOBACCO EXPORTS UP

Exj)orts of leaf tobacco showed an increase over
.lune, liKW, tile index being ninety as compared with
liftv-seven a vear ago. The export movement for the
moiith amounted to 27,799,000 pounds valued at
$5,490,000 compared witli 17,375,(HM) pounds valued at
$2,598,(KK) during June, 1933.

The volume of agricultural exports in general,
however, was 59 ])er cent, of the June average for the
prewar vears, June 1910-1914, according to the Bureau
of Agricultural Economics. This June index of fifty-
nine was the lowest for any corresponding June in the
last two decades, and compares with seventy-two in
.lune, 19.33.

August 15. 1934

CODE AUTHORITY COMPLICATION

EMANDS of code authorities that they be per-
mitted to levy assessments against business
IJ establishments handling their products but
whose major activity is in some other line with
a code toward which they are contributing, have devel-
oped one of the most complicated problems confront-
ing the National Recovery Administration.

It was originally planned that business concerns
should contribute only to the support of the code au-
thority for their major line of business, and it has been
complained by authorities for lines in which there is
large distribution as a secondary product that this is
depriving them of needed finances.

While the administration has dealt with some of
these situations by granting exceptions and ])ermitting
some establishments to be assessed several times, such
action has always aroused a storm of ])rotest among
those so taxed, and it appears probable that many code
authorities in specialty fields will have to curtail their
operations, thus indirectly bringing about the simpli-
fication of code administration at which NRA officials
are aiuiing.

BELIEVERS IN ADVERTISING

With sales for the first six months of the year at
the highest peak since the firm was established in
1899, the Axton-Fisher Tobacco Company's record is
one of which advertising can be proud.

The makers of Spud and Twenty Grand ciga-
rettes are a shining example of the value of not re-
ducing advertising when storm clouds disturb the eco-
nomic realm. From 1929 on when many an advertis-
ing account became a matter of history in magazine
and newspaper files, Col. Wood F. Axton, president
of Axton-Fisher, kept firing away at the depression
with his advertising schedules.

The result is a record whicli proves the coura-
geousness and sagacity of the Kentucky tobacco wiz-
ard. Last year Axton-Fisher built a new factory at a
time when all building operations were at a standstill.

Axton-Fisher 's record proves that steady adver-
tising coupled with a good product and competent
management can overcome an economic drouth of the
first magnitude.

O'CONNELL WITH DEBffUTH

T. J. O 'Council, who has a wide acquaintance of
friends in the tobacco business in New England, is
now in charge of sales for the New England division
of William DeMuth & Company. He made his first
trip early in August and many of his friends greeted
him.

PORTO RICAN TOBACCO

A net loss of $201,112 was reported by Porto Rican
American Tobacco Company for six months ended
June 30th. For first half last year there was a net loss
of $248,520.

CONGRESS CIGAR

'ongress Cigar Company had a June quarter net
of $12,17'), against net loss of $^927 in second

C

profit

quarter last year

*$

News From Congress

i. 'AND

Ft d E R A L

Departments

ETAIL tohacco stores in to^^^ls of less than
2.'3()0 jjopulation are relieved of all responsi-
bility for eonforniinn- with recovery code pro-
visions dealing- with niaximuni hours of em-
ployment, hours of store oi)eration, minimum wages or
tixed prices and will not be recjuired to niake any con-
tribution to code authorities for the administration of
codes, under an order issued by tlie 2sational Recovery
Administration August 7.

The order clarifies the President's executive order
of May 15, last, exempting jmrely local establishments
in the* small communities from the requirements of
codes.

Employers exempt from the general provisions of
codes will i)e required to abide by those dealing with
unfair trade ])ractices and prohibiting the employment
of child labor, and the exemj)tion ai)plies only if the
town of less than 2'M) j)()})ulation is not located within
the trade area of a larger connnunity.

CS3 tj3 [t3

ODE authorities for some 4(K) industries have
been asked bv the Business Advisorv and
Planning Council \o give their views on the
desirability of setting uj) unem])loyment re-
serves as the first step toward a national i)rogram of
unem])loyment insurance, and the specific form which
such reserves should take.

Pnemi)loyment insurance is one of four ])oints in
a program which will be submitted to Congress by the
Adniinistration next winter, involved in which also will
be a proposal for the decentralization of industry and
the payment of benefits and ])ensi()ns to the aged and
those ])hvsicallv unable to work.

"The ])aramount importance of the topic of im-
employment insurance," it was exjilalned ])y S. Clay
Williams of the H. J. Reynolds Tobacco Company,
Winston-Salem, X. C., chairman of the council,
*'makes it imju'rative, especially in view of ])robable
legislative develo|>meiits in this Held at the next session
of Congress, that American business and industry in-
form itself on the subject and make its \ i»*\vs known so
that constructively helj)ful ]uincii)k*s may be adoj)ted
and co-operative action bi-tween business and Govern-
ment may result.

"It is my hope that the councirs questionnaire will
not only stinmlate serious thought among business
leaders on the subject of unenq»l(tyment re8erv<'s but
will also reveal clearei' and more re|)resentative in-
formation as to industry's position than has lieretofore
been available."

16

From our M^ashinoton Bureau 622Alb££ Builoing

mmmmmmmmmmmmmmm^mmmmmmmmm

ONSTITUTIONALITY of the Industrial Re-
covery Act is challenged and the National Re-
covery Administration charg<'<l with foster-
ing monopoly in res])onses filed with the Fed-
eral Trade Connnission this month to com])laints
charging manufacturers in the rul)ber footwear and
ice industries with violations of their codes.

The issues involved in the cases l)efore the Com-
mission are of national inqiortance, and it was indi-
cated that any decision which might be rendered would
immediately be carried to the courts. Victory for the
companies opposing the XRA would necessitate the
rewriting of a large number of codes and would strike
a bodv blow to the whole program of the organization.
Charged w^ith having failed to file their price
schedules as required under their code, three rubber
companies asserted that the agreement was monopo-
listic and oppressive and had been drafted without
their having been given a hearing.

The ice company, charged with having established
and operated an ice nuinufacturing jHant in violation
of a code provision prohibiting increases in ])roductive
ca])acify without the a])i)roval of the Administrator,
contended that the act was unconstitutional and that
"Congress cannot delegate its powers to the Presi-
dent, w^io then transfers them to another ])arty," The
company also asserted that CV)ngress does not have
the i)Ower to regulate or prohibit mamifacturing.

Cj] [J3 Cj3

MPORTERS of foreign merchandise on which
duties may be lowered under reciprocal trade
agreements, while highly in favor of lesser
rates, are perturbed over the j)ossibility that
the changes made l>e made overnight and are urging
that a ''jieriod of grace" ))e granted in which they can
prepare themselves for the new cjinditions.

No provision for such a peiiotl is ma<le in tin-
tariff law under which tiie agreements are being nego
tiated, an<l it will be jmssible for the Presitlent to an
nounce changes in rates to become effective inimedi
ately, leaving the importers with st(H-ks on their hand-
which have l)een displaced by fiesher inqiorts at lowti
cost. Since the law authori'/es the President to clianuv
rates by as much as .')() jier cent., and it is ]>n'sume<l
that where reductions are made thev will be to the t'nil
amount permissible, importers, it is pointcfl out, couhl
easily be placed in a position where they might >ufTei
heavv losses.

The Tobacco World

TOBACCO EXPORTS 1934

(ContinHed From Page 4)

United States, no business w^as done in this type and
it is too early yet to predict sales possibilities. Sales
in dark-fired Virginia were reported as small during
the ([uarter, owing, it is claimed, to the fact that the
1(»l)acco had no body and that i)rices demanded were
rather high for the ([uality of tobacco offered.

Hamburg Tobacco Market

The Hamburg tobacco market was (piiet during
the month of June, local inq)orts being restricted
mainly to Brazil and Oriental tobaccos. American
(\)nsul John J. Meily, in a review of the June Ham-
Imrg market, nuide public by the Tobacco Division,
!)ei)artment of Connnerce, advises that arrivals of
(filler exotic leaf were so small in quantity that they
need hardly be considered in a survey of the local
market.

Arrivals of American tol)acco at IIand:)urg Free
Port during June amounted to 540 hogsheads, of which
:::>() hogsheads were Kentucky and Virginia leaf and
IIH) hogsheads of stems. Other leaf arrivals totaled
:)7,:i'i() bales, of which i:^,77() were from Brazil, and
4.1,520 were Orientals. Waste and scraps totaled 4030
1 tales.

Tobacco Situation in China

American Assistant Connnercial Attache A. Bland
Calder has advised the Tobacco Division, Department
of Connnerce, that the trade in American leaf tobacco
(»n the Shanghai market has shown no marked im-
] Movement and the outlook is no better than at the
end of the first quarter. Factories are reported to be
using a larger proi)ortion of China grown leaf, which
has dropped further in price, hence is in a more
favored jmsition. Cigarette production in the legiti-
mate taxed industry is running below normal. March
• luarter output of the factories in the Shanghai dis-
trict was I2V2 ptT cent, below that of the same period
of VXV,l, due" to the several adverse factors, higher
taxation, decreased jjurchasing power, and increase in
snniggled untaxed production.

Offtake by factories from American leaf tobacco
-locks in Shalighai continued subnormal during May
;ind sales are being made at prices which figure out for
many grades (after deduction of transportation and
nther expenses) as nuich as two cents or more below^
tlie juice the same tobacco would bring in the home
market had it not been shipped to China. There is no
ureat hope for any immediate decrease in the cigarette
tax rates a(h)pted last December. The indications are
that the present rates will stand for some months or
a year to come. Two of the large foreign owned (non-
Chinese) cigarette factories in Shanghai were closed
.iuwn for imrt of the month of May, due to labor
ii(Md»les, and had not reopened at the end of the month.
The <lif!iculties api)ear to have arisen from the tic-
livlties of laboi- agitators and not as a result of dis-
>atisfaction or deHiands on the part of the enq)loyees
themselves!

Tobacco Imports Into France

Heviewing official reports from the Ministry of
1 inances, American Vice Consul Davis B. Levis states
that importations of leaf tobacco into France during
the iirst fonr months of IIKU increased over those of
the col responding p<'riod of PK?.'^ by 962,969 pounds,

Augmt 15, wit

Just Enough Menthol to Cool and
Soothe Without Destroying
The Natural Tobacco Flavor

- ^

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

JESSE A. BLOCH, Wheeling. W. Va ,„...,...»„*, President

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

RETAIL TOBACCO DEALERS OF AMERICA. INC

WILLIAM A. HOLLINGSWORTH. 2J3 Broadway New York. N. Y President

CLIFFORD N. DAWSON. Buffalo. N. Y Executive Vice-President

JAMES C. THOMPSON, Chicago, II! Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

iOHN H. DUYS. Kew York City President
fILTON 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

ABE BROWN. 180 Grumman Ave.. Newark, N. J President

ALBERT FREEMAN. New York. N". Y First Vice-President

IRVEN M. MOSS. Trenton. N. J Second Vice-President

A. STERNBERG, Newark. N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MOR R IS LE VITONE President

SAMUEL MAGID, 2001 N. Mervine St.. Philadelphia, Pa Secretary

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E ASBURY DAVIS. Baltimore, Md President

JOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y Secretary

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN President

HERMAN H. YAFFE, 301 Fox Building, Philadelphia, Pa SecretJtnr

Establiihed 1886

"BEST OF THE BEST

99

M— f.c»u.,d b. ^ SANTAELLA & CO,

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg Wtst, Florida

OUR BIOH-OEADE NON-EVAPOEATINO

OGAR FLAVORS^ ^^^^^^ ^_^ ,__^„,^ ,_ ^^,.^„

and Impart a moat palatable flavor

FUVORS FOR SMOKING tnd CHEWING TOBACCO

Milium fnv Llat of Flavors for Special Brands
BMTU^;lSoSImBl. BOrrLAVOlS. ?ASTB SWEETENBM

FRIES & BRO., 92 Reade Street. New York

lffasjmjmjMJ}\im

Classified Column

The rate foi this column is three cent* (3c.) a word, with
a minimum charge of .eventy-five cent. (75c ) payable
strict ly in advance.

f^^^^A%<Wf^f"A^t!TV^<l??^?^^^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection- Large foHowmg.
Address Box No. 580. "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while line
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3.story and concreted basement building adjacent to P. R. R.
freight station in York, Pa. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. See A. Kauff-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT
LOVE— Adopt as your slogan, "Kiss your beer, but love y<mr ci-
gars." Specially those Havana blended, "Good to the last Puff"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa.
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, JtV'^^S'cm

Schedule of Rates for Trade-Blark Services
Effective April 1, 1916.

(see Note A),
(see Note B),

$5.00
1.00
2.00
2.00

Registration,

Search,

Transfer,

Duplicate Certificate,

Note A— An allowknce of $2 will be made to member* 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, bat 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 erery ten (10) additional titles necessarily reported.

NEW REGISTRATION

ILLINOIS AUTOMOBILE CLUB:— 46,349. For all tobacco

products. Alfonso Rios & Co., Inc.. Chicago, 111., June 28, 1934.

TRANSFERRED REGISTRATIONS
EL RETOZO:— 33,867 (United States Tobacco Journal), and 34,554
(Tobacco Leaf). For cigars, cigarettej-. cheroots and tobacco.
Registered January 22, 1908. and January 24. 1908, respectively, by
.American Litho. (:o.. New York, \. Y, Through mesne transfers
acquired by Odin Cigar Co.. Detroit. Mich., and re-transferred to
Masterpiece Cigar Co., Grand Rapids. Mich.. June 11. 1934.
LIFE'S HANDICAP:— 19,126 (Trade-Mark Record). For cigars.
Registered Mav 5, 1898, by L. Levy & Son, New York, N. Y.
Transferred to .American Bo.x Supply Co., Detroit, Mich., and re-
transferred to J. Mazer Sons Cigar Co., Detroit, Mich., May 16,

^934. ^, . „ .

ROYAL SCOT:— 18,732 (Trade-Mark Record). lor cigars. Regis-
tered February 4. 1898, by Schumacher & Fttinger. New York,
N. Y. Transferred by Consolidated Litho. Corp.. Brooklyn, N. Y.,
successors to the registrants, to Bernard Schwartz Cigar Corp., De-
troit, Mich., August 1, 1934.

(Coutiuucfl From Page 17)
and imports from the United States increased from
1,861,564 pounds to 2,792,787 i)ounds, or approximately

."JO ])er cent.

The review of Vice Consul Levis, as made public
by the Tobacco Division, Department of Commerce,
further states tbat an analysis of the fi^^ures indicates
an important increase in imports of leaf tobacco from
French colonies, notably Al^oria and Madagascar, and
a decrease in the total* imports from other countries,
although besides the United States, (Jreece made sub-
stantial gains. Imports from (jermany and Hungary
declined materially.

West of Scjotland Tobacco Trade
The i)rime factor to be considered in the tobacco
trade in the west of Scotland, and perhaps in th<
entire count rv, is the increasing sab' of tobacco ])ro(l-
ucts manufat-tured wholly or containing a large pro
portion of tobaccos of British Empire origin.

A report bv American Vice Consul J. Forrest
Ingle, based upon i)ersonal interviews with the tobacco
trade, and made public bv the Tobacco Division, Dv
i)artment of (N)mmerce, states that 'during the pericxl
from 1924 to 1927, when Empire tobacco came int<»
favor for the manufacture of cigarettes, it was nol
used in the making of cigarettes by local firms on a*'
count of its unsuitable flavor. During the past year
or two, however, importers who formerly stated thai
they would not handle Empire tobaccos, and manu-
facturers who ])reviously would not use them, haw
l>een forced bv public demand to concentrate their
efforts on the 'manufacture and distribution of pipe
tobaccos of Empire growth.

SEPTEMBER 1, 1934

'- "^^ARr

i

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

Phi la,, Pa.
Hanover, Pa.
Cincinnati, Ohio

^_ ^^ _ _ York, Pa,

AUTOKRAFT BOX CORPORATION Chicago, iii.

Lima Ohio Detroit, Mich.

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PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box- and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

/when buying cigars

I Remember thit Ref»rdle«« o# Price

I THE BEST CIGARS

I ARE PAOLO IN

^ WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

SEPTEMBER 1. 1934

No. 17

lIINdS are liapponiiit'- in the tobacco Inisiness.
The cigar peo])le are inakinji: herculean elYorts
to (>l)taiu authorization to put the nierchandis-
ini* phm of the (.'ode into etfect. (Uass B ci-
jrars continue to increase. ('i<»arettes show a «rain of
nearly 20 per cent, for July, a matter of nearly 1 bil-
lion, 829 million. The proposed ('ode of labor provi-
sions for the ci^^arette, snuff, chewing and sniokinji:
tobacco branches of the industry had hearinp in
Washington. Amendments are jiroposed which will
permit the continued manufacture of 'Hwo-fers" m
York County. The industry paid in July about seven
and a half million dollars more in internal revenue
taxes than in the corresponding month of last year.
Leaders of the industry who believe in making as good
a product as thev can for the money they ask for it,
in merchandising it in an intelligent way, and m ad-
vertising it in a manner that will prompt i)eople to
ask for it, are looking forward to a good fall and win-
ter business. And retailers who believe in helping
others to help them in business are becoming menibers
of their local organizations, affiliated with the national
association formed to assist them to get more profits
out of their business through the operation of the Re-
tail Tobacco (^ode.

Ct3 Cj) Cj3
KVER has there l)een a greater interest in to-
bacco products and smoking than at the pres-
ent time. Much of this interest is due to the
scientific investigations reganling the etTect of
tobacco smoking, in all forms, on the human system.
The latest i)ronunciamento to reach the newspapers
was the reported statement of Dr. S. Calvin Smith
that smoking is a jileasure that should n<»t be denied to
weak-hearted persons, since there is no scientific pr<»ot
that tobacco alTects the heart adversely. A])ropos ot all
this scientific discussion, there are many items ot in-
formation in Otis Allen Kenyon's booklet, ''Theory
and Facts of Cigarette Smoking," which ought to be
of absorbing interest to all engaged in the tobacco
business. For instance:

Cp Ct3 CJ3

BUHXlX(i cigarette produces smoke, the char-
acteristics of which vary with the following
factors: 1. Temperature of lighting; 2. Char-
acter of tobacco and flavoring matter: :i Speed
of smoking; 4. Length of unbunied cigarette. PhmI-
uets of combustion include carbon dioxide; carbon
monoxide; nicotine; ammonia; al<lehv(^^s such as
acrolein, furfural, tars, formic acul. The tars divide
into two groups generally known as high-temperature
tars and low-temperature tars. Whether there is a
preponderance of one group over the other is deter-
mined bv the manner in which the cigarette is snmkect
If the cigarette is lighted statically and smoked leis-
urelv there is a prejionderance of low-temperature
tars* ' If lighted with a strong draft from a match

tiaiiH^ and smoked vigorously and fast, there is a pre-
ponderance of high-temi)erature tars. High tempera-
ture tars are insoluble in water. They stain the fin-
gers and teeth and are hard to remove. They also
coat the membranes of the mouth and throat. Low-
temperature tars are soluble in water and do not stain.
Thev are easily removed by ordinary washing.

""The constituents of the smoke also depend upon
whether the smoke comes from the lighted end or is
drawn through the cigarette into the mouth. The free
smoke from the end has an alkaline reaction, while
smoke drawn through the cigarette has an acid reac-
tion. The alkaline reaction of free-burning smoke is
the principal cause of irritation felt when smoke-laden
air is breathed in. It also explains why the smoke from
the end of the cigarette hurts the eyes more than smoke
blown from the mouth. In a crowded room, non-smok-
ers suffer more from smoke than people actually smok-
ing. Smokers suffer less for two reasons: First, they
have an ac(iuired tolerance for smoke; and second, the
slightly acid reaction from the smoke of their ow^n
cigarettes partly neutralizes and (lisi)laces the ammo-
nia-laden smoke from the many smouldering cigarettes
in the room.

Ct3 Cj3 Cj3

XCE a cigarette is ignited, it l)urns like any
other fuel. Starting from the burning end, we
have first a layer of ashes, then glowing par-
ticles of tobacco, then charcoal which is
charred tobacco, then an area of high temperature
where the various substances are distilled, then a suc-
cession of areas of lower and lower temperature in
which proi^^ressive condensation and redistillation are
croing on all the time as the cigarette burns. The gases
and vapors given off by distillation, plus the sjnoke
which comes throui-h into the mouth, give the flavor
and pro<luce the ])hvsi<)logical effects of smoking.

*Tf the cigarette is lighted with an open flame
in direct contact with the end and the flame is drawTi
bv strong suction into the end of the cigarette, it is
easv to see that the high temperature area will extend
much farther back into the cigarette and thus destroy
the flavor of the tobacco . . . and by destructive dis-
tillation produce irritating products, principally high-
temperature tars, much of which may be condensed
farther along in the cigarette and revaporized as the
cigarette is smoked. In this way, it is plain that a
wrong lighting of the cigarette considerably depreci-
ates the flavor and quality of the smoke.

**Along the same line of keeping temperature as
low as possible, the smoker should always hold the cig-
arette with the lighted end uppermost when not sniok-
iivr; and in this wav, the heat of the bruning end is
carried off into the air. Otherwise, it is carried along
the cigarette, heats up the unburned tobacco, and
changes the distillation and condensation characteris-
tics of the cigarette, giving off more irritants and more
nicotine than it would at a lower temperature."

Th. TOBACCO WORLD («Ub,.h,dm)i,pn^^^^
D«^^ 22. 19W. .1 tSe Pet Office, Philadelphia. Pa., ander the Act of March J, 1879.

Retailers, Organize for Your Own Good

By WILLIAM A. HOLLINGSWORTH
President, Retail Tobacco Dealers of America, Inc.

O your own tliinkinii'. It is not nocossary for a
man to ho a ]mi»" mercliant or a hiuli-poworod
oxocutivo to fii-nro out tlu* sini]>k' facts of liis
own business. Ilo does it in his own family
life without any expert assistance. So it sliould be
with the Kelail Tol)aeeo CocUs which has ])ecome a i)art
of vour business. Do not permit yourself to become
confused by a lot of loose talk. The facts are simi)le
and easy to understand, if you will only reason them
out yourself.

Simi)ly stated, the Codi' attem])ts to I'dieye the
small retailer from the terrible burden of attempting
to meet the comi)etition of unfair merchants, who use
branded tobacco ])roducts as a means of brinuinu' cus-
tomers into their stores by sellinii' cii»arettes at cost
or less, hoi)inti to make profit by selling;' other <»oods on
which there is usual ])rolit.

The Code does this by forbidfUno: snlos of efsfa-
rettes below a minimum i)rice. In arriyiui*' at this
minimum ]»rice, the (Joyernment natui"ally insisted the
consumer l)e taken into consideration, and the retail
I)rice be fixed at a low enou«»h leyel so as not to dis-
coura;2:e consumption. These j)rices were agreed on
only after months of hard neu:otiations on the part of
a few unselfish men who haye sacrificed their time,
money and health in your behalf. As a result of their
efforts, you are now ])rotected aiiainst uid'air sellin«i:
methods of the business jii rates.

Remember, these prices are in elTect for only
ninety days. Durinir this i)eriod it is necessary that
your national association, the Retail Tobacco Dealers
of America, Inc., irather facts and eyidence to ]>roye
to the Administration's satisfaction the necessity of

continuing' this ])rotecti()n. It must ])r(»ye Ihe retail-
ers haye liyed up to the Code, ami tliat no unusual
hardshi])s ha\e been yisited upon the consumers.

If the retailers feel prici's haye been set too low,
an o])])ortunity may be had to increase tlic mark-up,
l)ut only if they are ])re])are(l with the faf-ts to ])i-oye
their claims.

In order that all of these thiuLis may be done
with some decree* of intellii»'ence it is \-ery evident that
all retail tobacco dealers in every ])art of the Fniti^d
States must co-o]>erate and act as a unit, one great
national organization.

This does not mean that local organizations are
not necessary. They ])erform important services in
their communities, such services as a national organi-
zation could not ]iossi]ily attem])t. But these f)rgani-
zations nnist be associated with the national body to
be effective in matters so vital to you as your Code or
your relations with the (lovernment. Tliere must be
one voice for the entire retail tobacco Industry, and
it must be backed bv every unit in the industry.

Your national association urgently needs your
financial sujjport to carry on its ])rogiam — it needs
you and your l)rother retailers right now — in sixtv
(lays it may l)e too late.

Your local organization can join and afRIiate \vith
your national association by i)aying' only two dol-
lars a year ])er mend)er. Help your loeal ornaniza-
tion and your national association by voting to innne-
diately place eyery iiK'inber of your local organiza-
tion on the roster of the Retail Tobacco Dealers of
America, Inc.

$7,035,851 Paid to 10,233 Wage Earners

MIM.OYMKXT of 1(I,2'J:J wage earners, to
wh(»m J^7,n:)r),sr)l was paid in wages, and the
manufacture of chewinii and smoking tobacco
and snuff valued at $i:}(),.j!Hi,I)74 in VXV.] is
shown by a pieliminarv tabulation of data colh'cted in
the Biennial Census of Manufactureis takm in 1934,
released todav bv Director William L. Austin, Hureau
of Census, Department of Commerce.

"Although this report shows decreases as com-
rector Austin -aid, ''It is noteworthy that the rates of

decrease in wage earners and wages are smallei- than
those in value <?f tobacco and snutV jnoductMl. These
rates of decrej.>e are — wage earnei's, lO.b per cent.;

wages, 1H.!> pei' cent.; value of tobacco and ^nufT, 20.9
per cent."

The table below gives statistics foi- ID^iM in com-
jiaiison with those for 1!».')1. All ligui'es foi- V.KVA are
pieliminarv and subject to I'evision.
pared with liKJl, the la>t preceding census year," Di-

Summary for the Industry: 1933 and 1931

1933 1931

Number of establishnicnt> Ill 1J5

Wage earners overage lur tlie

year)' 10.223 11.441

Wages;' $ 7,035.851 $ 8.o73,479

Cii-t of niatcnaU. i llntailK•r■^, iirI.

and purclia>t<l tkitric nu-r-

Per cent.

of

decrease

—11.2

— 10.6
—18.9

Rv

X'alue of products',

83.040.937 111.158.257 —25.3
131,925.691 169,113,123 —22.0

Tobacco, chewing and >!noking,

and snuff $130,596,974 $165,128,707 —20.9

Other products 1.328,717 3.984.416 —66.7

Value added bv manufacture ' . . . 48,884.754 57,954,866 —15.7

* Not inchiding salaried officers and employees. Data for such
officers and employees will be includcfl in I.'ter report. The item for
wage earner> i> an average of the number^ reported for the several

months of the year. In ralculatiiiK it. »<iual weight mu>t In- given to
full-time and part-time wage ea^nt•r^ (not teportcd >cj)aratel> by the
manufacturers), and theretore it e.\ceed> the number that would have
been recjuircu t.. perform the work done in the industry if all wage
earners had been contn)u«>u>ly emphtyed throughout the >eur. The
(juotient obtained by clividing the amount «»f wages by the average
nundjer of wage earners cannot, therettire, be accepted as represent-
ing the average wage received by tull-tnnc wage earners. In making
ct)mparisttns between the figures for I''.^; .nul tho-r i..r I'fM, the pos-
sdjihty that the propt»rtion of part-tniu- cnijdi<ymcnt was larger ni one
year than in the other should be taken ujto accoinit.

•'Manufacturers' proiiis i,r lo-st >, cannot be calculated from the
censu^ figures because no data are collected for certain expense iteniH,
such as interest, rent, depreciation, taxes, insurance, and advertising.

'Including $36,134,312 for 1933 and $4^,284.92o for 1931, paid a*
intrnial revcnur t.ix Ibis amount is nu ludccl m ((i",t ni materials as
well as m value ot priulucts in order t > a\oHl mdatuig the item for
"X'alue added by manufacture." (Sec inotnote 4.)

* Value of prtxlucts less cost ui materials, fuel, and purchased elec-
tric energy.— Lamm.

The Tobacco World

New Trade Agreement with Cuba

Reciprocity Arrangement Effective September 3

WVa ei<;ar and ei,i»aret1e industries of Ihe Fnited
States stand to receive material henetits
thronuh the eoini)h>tion of the ('ul)an-Anier-
iean re('i])rocal tiJuU' jiaet, althonuii th(' eon-
cessions to l)e avaih'd of )>y the fornier may he reduced
somewliat hy ineroased imi)ortations. rnstemmed
wrappci- tol)aceo, which now carries a rate of $1.JM)
per pound will he permitted entry at i|^l.r>(), the ratejm
unstemmed filler is reduced from 2S cents to 17Vj
cents per jjoniid, and oii stemmed from 40 cents to 2')
cents; scrap tohacco will come in at ITVL^ cents instead
of 24 cents, while ci«iars will take a comhination rate
of $2.2-") ])er pound and 12' ^ i)er cent, ad valorem in-
stead of the present rate of H^2.S() per pound and 2(1
per cent, ad valorem.

All of these commodities, however, aro to he sub-
ject to a <piota e<iual to IS ])er cent, of the domestic
consumption of tohaccc*.

In return for these concessions, preferential
treatment is to he accrnded exports of American prod-
ucts, resiK'ctinn' which the State Department made the
followini;' explanation:

'*()f special importance is the i)reference of 20
])er cent, conceded on all American tohacco and to-
hacco ])roducts, which, under the provisions of the
Commercial Convention of liHri, are specifically ex-
cepted from |)referential treatment. In addition, the
duty on American ciuarettes has heen reduced from
$4.r)0 ])er 100 pounds plus an ad valorem duty of 'I'y i)er
cent, to ^1^1.81 plus a 20 per cent, ad valorem duty.
American ciirarettus which formerly cost the (hiban
consumer To cents a package will now retail around

25 cents."

The treaty was siuned on Auirust 24 and ])econies
etTective ten days theieaftiT to remain in force for
three vears after which it mav he denounced hy either
government on six months' notice.

In view of the Tnited States ciuar tohacco control
])roii:ram, involvinu* the restrict icui of production of
domestic throwers in order that excessive supi)lies of
tohacco on hand may he diminished, it was not believed
e(|uital)le to «i:rant ('uba re<luctions in <luty without at
the same time imposinn- some linutation on th(» amount
of Cuban tobacco to be permitted entry into the Ignited
States, it was related.

At the same time, the State Department explained,
since tol)acco is second to su^ar in importance in her
economy, an<l, since the I'nited States is ln*r best cus-
tomer for this product, Cuba desired concessions on
this ])ro(luct.

"A satisfactory airaii.uement has been reache<l
nn the basis of a <piota on imports of Cuban tobacco,
lordlier with reductions in duties," the Department
added. "Cnder this anann'cment the t(»tal «juantity
of ciuar leaf tobacco, ciyars and cheroots of all kinds
which will 1h» permitted to enter from Cuba is not to
«'xceed IS per cent, of the total <piantity of tobacco used
in th«' I'nited Stati's durinv: the ])revious year for tlie
manufa<'tur«' of cigars. The liuiire of IS per cent, is
based on the ]>ercenta,u:e of the 10-year averaue of
Cuban imports to total domestic consumjition of cigar

tobacco.

'*The reduced duties shoidd |)ermit the sale of ci-
gars at a somewhat lower price on this market, which

Septemhcr t, ii^S4

should increase consumption. Cuba will benefit from
the expanded market since the (piota allotted her in
any one ye^ir is calculated on IS ))er cf*nt. of the ])revi-
ous year's consumption. At the same time, it affords
])rotection to the domestic jModucers, since imports of
Cuban tobacco are limited. Moreover, if the ci.oar ad-
justment ])rogram is abandone<l, the rates on Cuban
tobacco will revert automatically to the })resent rates."

STANLEY CHARLES FREDERICK

T IS with deep regret and sym)>athy tliat we
record the ])assing of Stanley Charles Freder-
ick, vice-president of the A. H. i^)aHiet Cor])o-
ration, Allentown, Pa., on Saturday. August 25.
The end came at White Haven, Pa., where he had gone
for treatment seven weeks previously. He was in his
forty-third year. A native son of Allentown, he had
been employed with the P>alliett ( V)rporation, where,
in addition to his executive p(>sition, he acted as super-
intendent of the ])lant.

He was graduated from Allentown High School
in 1007 and from Allentown Preparatory School in
li)OS. He attended Muhlenberg College.

A charter mend)er of Christ Lutheran Church, he
was active in the Sunday School and cliurch and was
at one time a mend)er of the vestry. He devoted much
time to the interests of the Masonic Order, iu which
he held several high offices.

Surviving him are his wife, (J race, nee Fritchman;
his mother, Catherine J., nee Boyer; a son, Stanley,
Jr., aged 0, and a sister, Helen, wife of Walter K. Mc-
Gee, of Allentown.

Funeral services were held on Wednesday, August
29, at the home of his father-in-law, Stewart Fritch-
man, in Allentown. Interment was made in Fairview
Cemeterv.

DISBURSEMENTS TO GROWERS

A state-bv-state tabulation showing the ])robable
distribution of $41,702,000 that it is estimated will be
disbursed in rental and benefit payments to tobacco
jiroducers co-oi)erating in the l!>o3 and ID.'U adjust-
ment programs, has been issued by Ward M. Buckles,
director of the finance division of the Agricultural
Adjustment Administration. Of this $2,000,000 was
Un- VXV^ and $:JI),702,000 for VXU. (Vmnecticut, Flor-
ida, (leorgia, Illinois, Indiana, Massachusetts, ^linne-
sota. New Ham])shire, New York, Ohio, Pennsylvania,
Vermont and Wisconsin were in the VX\\\ ])rogram. To
these were added in 1934, Kentucky, Maryland, Mis-
souri, North Carolina, South Carolina, Tennessee,
Virginia, West Virginia ami Puerto Rico.

American Sumatra Tobacco

American Sumatra Tobacco and subsidiaries for
fiscal year ended July 31 shows j)rofit of $4()3,0:H com-
pared with $8841 in preceding year.

MIA.

BAYUK BREVITIES

|nr

Rocliester Branch of Bayuk Cigars, Inc.,
is setting a fast ])ace in increased distribu-
tion through new accounts in the ter^-itory on
Phillies and other brands of the company,
under the direction of M. F. Westphal, brancli mana-
ger, and James P. Given, territorial manager . . .
Harry Catlin, of the sales dei)artment, assisting
Myers-Cox, distributor for Dubu(iue, Iowa, reports
gratifying distribution and consumer demand in that
sector' , . . Charles Cox, Bayuk salesman working
with Zolla Brothers, Chicago, is ])utting over some
very fine promotional work on Phillies in the AVindy
City ... As usual, Phillht^s are doing very well in
their own home town, with what seems to an outsider
like a complete coverage of retail outlets . . . Phillies
have quite an extensive coverage on the outdoor boards
here these davs, too.*

G. H. P. SALES UP

RANK P. WILL, executive vice-president of
G. IL P., is feeling elated over the August
sales which were better than his most sanguine
expectations, incidentally beating last year's
volume on El Product o and La Azora . . . Inciden-
tally, he still crows about the condition of the cigar
business in general, pointing to the withdrawals for
the first seven calendar months as a picture of healthy
growth . . . He is hopeful that this improvement will
be heightened by an adjustment of the Cuban situation
. . . D. A. Jenks, assistant sales manager, is away
on a trip through the midwest in which he is combin-
ing business with pleasure, as part of his itinerary is
a stopover in the old home town, Detroit.

H. & S. OUTING

Employees of H. & S. Stores held their sixth an-
nual outing at Grand View^ Park, Yerkes, Pa., on Sat-
urday, August inth. The events included races of all
varieties, tug of war, baseball game, apple eating con-
tests, luncheon, dinner, bridge and dancing. The offi-
cers of H. & S. Elmployees Association are Harry
Perlmutter, president; Albert M. Huim, vice-presi-
dent; Rose Brooks, secretary, and Marty Levitt. Ireas
urer. The Outing Committee was composed of Harry
Cohen, S. Littman and O. Abramson,

Trade Notes

Mr. Joseph Wagner, of John Wagner and Sons, is
en route to P]urope on a vacation trip, but combining
business with pleasure. He expects to return via the
southern route, and will be away al)out three or four
weeks. Mr. John Wagner has just returned from a
vacation trip in the Maine woods.

Barton Lemlein, of ^L Sachs & Co., New York City
manufacturers of high-grade cigars, was a visitor in
town this week, as was also William Freeman, of the
Medal of Honor Cigar Co. Gind)el Brothers depart-
ment store is featuring a splendid disfilay of Medal
of Honor cigars this week in their cigar department
which is attracting considerable favorable attention,
and producing new friends for the brand.

The Royalist factory (Gralios^ Bros., Inc.),
North Second Street, is now furnishing the trade with
punctured heads on all sizes of their brand, and new^
window posters are being ])laced throughout their ter-
ritories announcing this fact. The punctured head on
a cigar is a great convenience to the smoker and it is
anticipated will increase the demand for the Royalist
to a considerable degree.

John AVagner & Sons, imjjorters and distributors
of high-grade cigars and tobacco products, announced
this week, tliat they are no longer distributors of the
Garcia y Vega cigar, but are featuring instead the
Don Sebastian clear Havana cigar, made in bond by
Arango y Arango. The Don Se!)astian is gaininir new
friends daily in this territory.

'*New Day Cigar Stands" is the title of an inno-
vation to be launched by Yahn & McDonnell. It con-
sists of a co-operative service including window dis-
plays, showcase and counter displays, and the service
of a merchandising plan keyed up to present' competi-
tive conditions. To dealers who adopt the plan will be
furnished the weekly service of l)oth window decora-
tors and merchandising men, to assist in the stimula-
tion of their business.

Thi Tobacco World

Merchandising Plan in Plain Languace

A Translation of the Code Provisions into the Cigar Man's Words

HAXSLATIXG the legal language of the Cigar
Code into the language of the cigar manufac-
turei', the Cigar Manufacturers Code Author-
ity has issued a circular ex])laining the pro-
visions of the merchandising plan. Km})hasis is laid
on the condition that prices must be prominently
marked on the package, and that terms, i)rices and
discounts must not be i)ublicized until they have re-
ceived notice from the Tobacco Trade Council that
thev are elTective. Following is the text of the cir-

»

cular :

General

1. The Cigar Merchandising Plan does not apply
to a manufacturer who sells at retail directly to the
consumer, all of the cigars which he manufactures.

2. All other cigar manufacturers will be reijuired
to file with the National Tobacco Council, Inc., 125
Park Avenue, New York City, with respect to each
shai)e or size of each of his brands, a comi)lete schedule
of the following:

Minimum retail prices.

Discounts to retailers.

Discounts to accredited cigar jobbers.

Discounts to cigar service jobbers.

Discounts on drop shipments.

Discounts to be allowed for cash and the maximum
time oidinarily grante<l by th(» manufacturer for the
deduction of such cash discount.

The Merchandising Plan requires that all of the
foregoing jirices and discounts shall be uniform on
any cigar of a given l»rand, size, shape and retail price.
They may be varied tor cigars of ditTerent size and
shape, Init of the same brand. Xo quantity discounts
aie i»ermitted, except foi* the drop shipment discount,
which must be uniform with respect to eacli shape, size
and price of a given brand.

W. The Code do<*s not require the filing of service
credits which may be allowed on drop shipments, nor
of the discounts to chain stores. Neither of these need
be uniform, but both nmst fall within the limits pre-
scribed in the Code.

4. The Merchandising Plan rec pii res that tlie retail
])rices and discounts shall be tiled with the National
To))acco Council. However, it is jH'rmissible to bill
the customer at a net price, providing such price is
determinetl on the basis of the retail price on tile, and
providing further that the invoice shows the retail
price and the discounts, as recpiired in Section 5 of
Article VI of the Code. In calculating the net price,
the retail discount should be deducted tirst and jobbing
discounts thereafter. The cash discount shouKl be de-
ducted last.

5. The Merchandising Plan reijuires that retail
prices be prominently marked on each container of
cigars. It is contenqjlattMl that, within the next thirty
days, your Code Authority will have obtained approval
by* the Administrator of a uniform stamp, to be ap-
j>lied to each container and to show the retail price of
the cigar and the Blue Kagle emblem. Regulations as
to the placing of such stanqjs will be issued upon its

September i, njit

approval by the Administrator. Meanwhile, the indi-
vidual manufacturer will have to use his own discre-
tion as to the type of price mark and its prominrnt
])lacing. In the' interests of uniformity, it is recom-
mended that the price mark be ai)plied either on the
outside front of the box op[)osite the revenue stamp,
or on the inside lid label.

6. Prices and discounts filed with the National
Tobacco Council must not he circulated to the trade
until notice has been received fr(tm the Council that
thcff have been me effective. \Vhen such notice has
been received, the numufacturer is free to circularize
his trade. The same restriction applies to changes in
prices and discounts.

Retail Prices

7. Where it is intended that cigars shall sell at
retail in groui)s (two for fifteen cents, three for twenty-
five cents, seven for $1, etc.), the group price should
be filed with the Council, as the minimum retail price.

8. The Code permits the numufacturer to establish
a minimum box j)rice, which may be not more than
8 per cent, lower than the established retail price of
the contents. Where the manufacturer chooses to es-
tablish such box price, the cigars should none the less
be billed on the basis of the retail price of the unit or
group.

9. The Code Authority has ruled that retail prices
and discounts to retailers, accredited jobbers and serv-
ice joV)bers, may be varied for ditTerent "packings."
Bv ditTerent "packings" is meant a variation in the
number of containers per 1(K)() cigars. The primary
purpose of this ruling is to permit the manufacturer
to pass along a portion of the increased cost of
"fortieths" over the cost of "twentieths." This rul-
ing is not intended to permit a variation in prices and
discounts l)ecause of differences in the type of con-
tainer, except in the case of special containers having
an unusual intrinsic value.

10. Retail piices and discounts nmst be uniform
with respect to cigars of the same brand, size and
shape. A different front mark does not justify a varia-
tion in price or disco u)(ts,

11. It is permissible to establish a mininmm re-
tail price for single cigars in fractions of a cent, so
that the addition of the state tax will bring the retail
])rice of the unit to the next even cent. For eyami)le,
a cigar could l)e nuirked to retail at not less than four
and one-half cents. In a state having a tax of $.") per
thousand, this cii^ar would actually be sold to the con-
sumer at five cents. The same cigar would sell in a
non-tax state at five cents, because the retailer could
not collect four and one-half cents from the consumer.
However, two ol these cigars might sell for nine cents
in a non-tax state, and for ten cents in a tax state.
Hoiven r, if the manufacturer so establishes a frac-
tional price, surh pria' must be promincntlji marked
on the I (,ntainer and must hr uniform for all cigars of
the same brand, size and shape, regardless <tf where
s(dd.

Trade Discounts to Retailers

12. Trade discounts on sales to retailers (other
than to chain stores) are limited to a maxinunn of 28
per cent., such discounts to be uniform to all retailers
with respect to cigars of a j^iven brand, size and shape
(except on drop shipments referred to below).

Trade Discounts to Accredited Cigar Jobbers

13. The term "accredited ciuar jobber" is detined
in Section 15 of Article II of the Code. There can
only be one accredited cii»ar jobber as to a j»iven brand
in a given territory. Because of the exclusive arrange-
ment provided for accredited cigar jobbers, there can
be no cigar service jobbers in the same territory with
respect to the same brand.

14. Without intending to constitute the manufac-
turer a jobber within the meaning of the Code, but for
the purpose of determining the permissible maximum
discounts, the Code Authority has ruled that, in terri-
tory where a manufacturer, either directly or through
subsidiary or affiliated comj)anies, performs the func-
tions of an accredited jobber, Jw wust regard all other
jobbers 1)1 Ihat ierriionj as sub-jobbers. However, in
special instances where this ruling works a peculiar
hardship on a manufacturer, he may request the Code
Authority to declare him to be a service jobber in a
given territory and, if the facts appear to the Code
Authority to justify such declaration, his request may-
be granted.

15. By written arrangement with the accredited
jobber, the manufacturer may permit him to sell in
adjacent open territory.

16. Trade discounts on sales to accredited cigar
jobbers are limited to a maximum of 14 per cent., in
addition to the discount which the manufacturer has
established on sales of the identical cigar to retailers.
Such discounts must be uniform to all accredited job-
bers with resj)ect to cigars of a given brand, size, shape
and price.

17. Where an accredited jobber has requested or
consented to a drop shiinnent to a retailer or sub-
jobber, he t)tai/ receive from the numufacturer, a serv-
ice credit which shall not exceed the discount to ac-
credited jobbers on the particular cigar, and the maxi-
mum discount of 14 jjer cent. In other words, if the
manufacturer has established a 12 per cent, discount to
accredited jobbers on a particular cigar, such manufac-
turer may allow an accredited jol)ber, a maxinmm serv-
ice credit of 2 per cent, on drop shipments.

Trade Discounts to Cigar Service Jobbers

18. The term "cigar service jobber*' is defined in
Section 16 of Article IT of the Code. There can be
no cigar service jobbers in the territory in which an
accredited jobber has the exclusive distribution of a
given brand. There can, however, be cigar service
Jobbers in this territory who handle other brands of
the same numufacturer.

19. Trade discounts on sales to cigar service job-
bers are limited to a maximum of 10 per cent., in addi-
tion to the discount which the manufacturer has estab-
lished on sales of the identical cigar to retailers. Some
confusion has arisen due to the fact that Sub-section
(c) of Section 2 of Article VI contains a provision
that the discount to service jobbers shall be not more
than 66 2/3 per cent, of the discount established for
accredited jobbers. The Code Authority has ruled
that this limitation is meaningless, in view of the fact

8

that there can be no service jobbers in territories where
there is an accredited jobber. In the event that the
Administrator raises any question as to the correct-
ness of this ruling, the Code Authority intends to apply
for a modification of the Code so as to clearly conform
with this ruling.

Drop Shipments

20. A discount on drop shipments to retailers or
sub-jobbers, where ])ermitted by the Code, may only
be allowed on (|uantities of not less than 2000 cigars
in the case of Class A and B, and not less than 1000
cigars in the case of Class C or higher classes. Direct
shipments in smaller quantities must be sold on reg-
ular trade terms. The Code Authority has ruled that
Classes A and B may be mixed to make up a drop
shipment quantity, also Class C and higher classes.
However, cigars of Class A or B may not be mixed
with Class C or higher classes in order to arrive at
the mininuim quantities. Drop shipment quantities
may consist of mixed brands of a single manufacturer.
We are advised that the jobbers will be governed by a
similar provision and will not permit the mixing of
brands of different manufacturers. The maximum dis-
count i)ermissible on drop shipments is 5 per cent., in
addition to the retail discount. Drop shipment dis-
counts nmst be uniform as to cigars of a given brand,
size, shape or price, but may be otherwise varied in
the same manner as other trade discounts. The drop
shii)ment discount shall be allowed by the manufac-
turer or the jobber whichever shall make the billing.

21. By previous arrangement with the manufac-
turer, drop shij)ments nuiy be made by the accredited
jobber out of his own stock, providing such jobber is
required to furnish the manufacturer with duplicate
invoices of the transactions.

22. It should be clearly understood that the drop
.shipment discount jAus the discount ahd service credit
allowed to the accredited jobber, can in no event exceed
14 per cent.

Trade Discounts to Chain Stores

23. The Code i)ermits the manufacturer to allow
to chain stores trade discounts uj) to a maximum of
those allowed to the accredited cigar jobbers. These
discounts are optional and need not he uniform. How-
ever, the definition of "chain of stores,'* contained in
Section 20 of Article II of the Code, should be strictly
construed. For exanii)le, the Code Authority has ruled
that several cigar stands in a single hotel or public
building do not constitute a chain.

Cash Discounts and Terms

24. The 2 per cent, discount allowed for cash is
intended to be a maximum; the manufacturer may
choose to allow less. Such cash discount may be al-
lowed to chain stores, as well as to retailers, jobbers
and sub-jobbers.

25. The Code permits the allowance of the cash
discount for a period which shall be within the "estab-
lished credit terms" of tlie manufacturer. It is con-
templated that the manufacturer shall file with the
Council the maximum length of time during which it
is his custom to permit such discount to be taken. As
a guide to the industry, the Code Authority strongly
recommends that such time be limited to thirty days,
with a possible allowance of not more than ten days for
tenth of month payments.

The Tobacco World

FROM LONG KEY TO NOVA SCOTIA, the famous sportsman and writer, REX BEACH,
has matched his skill and vitality against the big game fish of the Atlantic! Below he tells how
be lights a Camel after fighting it out with a heavy fish — and soon "feels as good as new.'*

REX BEACH EXPLAINS

how to get back vim and energy when "Played Ouf '

. _.i-. ^^u«- u:- - .^«.^ ^r «»<*it.k/>;n(r anH re^n^wcA And science adds confirmation of

"Any sportsman who matches his
stamina against the fighting strength
of a big game fish," says Rex Beach,
*'has to put out a tremendous
amount of energy before he lands his
fish. When I've gotten a big fellow
safely landed my next move is to
light a Camel, and I feel as good
as new. A Camel quickly gives me

a sense of well-being and renewed
energy. As a steady smoker, I have
also learned that Camels do not
interfere with healthy nerves."

Thousands of smokers will rec-
ognize from their own experience
what Mr. Beach means when he
says that he lights a Camel when
tired and "feels as good as new."

And science adds confirmation of
this refreshing "energizing effect."
That's why you hear people say
so often: "Get a lift with a Camel."
Camels aren't flat or "sweetish.**
Their flavor never disappoints.
Smoke Camels steadily — their finer,
MORE EXPENSIVE TOBACCOS do
not get on the nerves!

CmmmU mn mad* from Hnar, MOBE EXPENSFVE TOBACCOS
— Turkish and Dom««tlc — than any othar popvUc btand.

CAMELS

Costlier

Tobaccos
never get on

your Nerves

V. .^

«4

Get a
ith a Camel !

99

wi

'^/^

Copyrlffat. 1934. B. J. a«rnoUi» Tobacco Compwiy

September i, 1934

EMERGENCY IN YORK COUNTY

X ORDER recogniziiii? an enicrgeney in the
nianufactiiro of hand-made two-for-five-cont
cio-ars in the York ('onnty district of Pennsyl-
vania lias been sii»ned by Division Adminis-
trator Armin W. Riley. The order ai)proves the Code
Anthority's re(]nest for a hii»her rate of exem])tion
from minimnm wai'e provisions of the ci^ar manufae-
turini*- code ai)i>lyino- to so-called "slow workers," or
rollers of hand-inade two-for-iive-cent cigars in the
York County district.

Under the exemption just ap])roved, employers in
this district would be recpiired to pay rollers— a class
of workers which heretofore has been exempted from
the minimnm wai>e provisions under a si)ecific rate —
not less than ^:> per thousand, and bunchmakers not
less than $1.20 per thousand. This new rate will be
continued for a ])eriod of thirty days, "unless further
extended bv the Code Authority."

Final approval of the Code Authority's reciuest
followed a reconnnendation by the XRA Labor Ad-
visor v Board.

PEAK OVERTIME PERIOD SET

IVI8I0X Administrator Armin AV. Riley has
defined the i)eak ])eriod durinu: which ci.ii:ar
manufacturini»: emi)loyees may be ])ermitted
to work overtime as August i.") to December
15, it was announced today. During any 13 weeks
of that period productive employees may be ])ermitted
to work 45 hours per week, but not more than nine
hours a day.

The Code for the cigar manufacturing industry
provides that the maximum work-week shall be 40
hours, but that "during two peak seasons a year"
overtime may be i)ermitted "i)rovided that the number
of hours i)er week in each season shall be determined
by the Code Authority, subject to the a])proval of the
Administrator."

The Administration's order pormits ovorfinio only
on condition that there is a shortage of suitable labor
available for the employment of additional employees.
in the conmmnity, or that productive facilities are not

REVENUE FOR CODE AUTHORITY

ROVISIOXS for raising revenue for the ])ur-
pose of meeting the exi)enses of the Cigar
Mamifacturers Code Authority were consid-
ered bv that bodv at its last meeting, and the
method decided upon has been submitted to AVashing-
ton for ai)j)roval. The method involves a system of
stam]>s, which include the X. R. A. insignia, and the
])rice, the cost of which is graded in accordance with
whether the stamj) is to be used u})on Class A, B, C,
D, or E cigars, with the exception that there are two
stam])s for Class A, one of which is inten<led for the
manufacture of two for five cent cigars. Karly ap-
proval of the plan is expected.

Due to the fact that the latter half of the vear in-

*

volves the rush season of cigar manufacturing, appli-
cation has gone forward to the X. 1{. A. for a 45-hour,
nine-hour a day, woik week for productive employees,
to be taken in any thirteen-week }>eriod between Au-
gust 15th and December 15th. The same thing could
be accomplished by working nine hours on Saturdays,

10

but the workers ])refer a five-day w^eek of nine hours
each. Rumors current the past week that such ])ermis-
sion had already been granted are erroneous, llow'-
ever, it is believed that the application will be granted,
but in the meantime manufacturers who o])erate on
that basis until the X. R. A, has signified its a])proval
are violating the Code.

^lanufacturers in doubt as to Code recpiirements
arc re(piested to send in their recpiests for informa-
tion to the Code Authority, care of D. S. Leidesdorf
& Co., 125 Fourth Avenue, and not to any individual
member of that body.

SCHWARZ AND HAST NAMED

HE two men selected for the Code Authority
for the Cigar Manufacturing Industry to rep-
resent firms not mend)ers of the Associated
Cigar Manufacturers and Leaf Tobacco I)eal-
ers, are Arthur Schwarz, of the clear Havana cigar
manufacturing firm of Max Schwarz, Xew York,
who will represent non-mend)er hand cigar manufac-
turers, and J. J. Hast, of the Standard (Mgar Co.,
Pittsburgh, stogie numufacturer, who will represent
the non-member machine manufacturers. This com-
jiletes the jjersonnel of the Cigar Code Authority,
which consists of six manufacturers representing
ACMLT members, two manufacturers representing
non-members, one member to represent the Labor Ad-
visory Hoard, and one ai)pointed by tlie Administrator.
The Code Authority has mailed a simi)lified sehed-
ule of the wage and hour provisions for every classi-
fication of employees to all cigar manufacturers. This
regards conditions to which the industry is subject
under Articles III and IV of the Code. Along with
this were mailed applications for copies of the labor
l)rovisions, which must be posted in every cigar fac-
torv. Anvone who has not received this material mav
write to Sanniel L. Kuhn, Secretary of tiie Code Au-
thority, Pershing l^uilding, Xew York, and it will be
forwarded innnediatelv.

MONOPOLY IN DOMINICAN REPUBLIC

As reported by American Consul Walter S.
Keineck and made ])ublic by tlie Tobacco Division, De-
jiartment of Conunerce, the outstanding event of
economic imi)oitance in the Dominican Republic dur-
ing .July was the estal)lishment of a tobacco monopoly,
the scope of which has not as yet been definitely de-
termined. It is probable, however, that it will control
the ])urchase and sale of leaf tobacco and the manu-
facture of all tobacco products as well. It is under-
stood that this monopoly will be allotted to private
persons or a corporation on specifications and terms
which have not as yet been made public.

The immediate effect of the establishment of tlie
tobacco monopoly has been complete stagnation in the
movement of the tobacco crop, (i rowers are holding
off in the hope of higher prices, and middlemen, be-
cause of uncertainty regarding the possibility of freely
disposing of any holdings which they may acquire.
This tying-up of the nuiin money crop will iuive a
deleterious etTect on commerce for a jieriod at least,
since the movement of the crop extends over about
three or four months and involves api)roxinuitely a
million dollars. Collections will also probably be
slowed up in the tobacco districts.

The Tohttceo World

II

September t, 1934

FLUE-CURED ADJUSTMENTS

LUE-CURED tobacco growers who have
signed adjustment contracts and whose pro-
duction in 1934 is less than their allotment,
mav, if thev so elect, sell flue-cured tobacco
grown by other contracting growers whose production
exceeds their allotment, the Agricultural Adjustment
Administration announced recently. An adminis-
trative ruling permitting such sales has been signed
bv Secretarv of Agriculture Henrv A. AVallace.

This decision was reached after a conference w^ith
an advisory group of flue-cured growers from all parts
of the belt. At this conference, it developed that in
some sections the production w^ill be well below the
([uantity allotted. On some farms in each region, pro-
duction may slightly exceed the allotment. Reports
as to crop conditions from all sections indicate that
the total production of contracting growers will be
a])})roximately fifty million pounds below 80 per cent,
of the base production w^hich will be the quantity
allotted to contracting growers and the quantity for
which tax payment warrants could be issued. The
most recent estimate of the crop is 526 million pounds.

Flue-cured tobacco marketing and allotment cards
are being distributed before the opening of the markets
in all states in which flue-cured is gro\\Ti. Each grower
who has complied with the provisions of his contract
is given a marketing card and allotment cards cover-
ing 80 per cent, of his base tobacco production. Tax
payment warrants are issued as sales are made.

At the time each sale of tobacco is made, the num-
ber of pounds sold is entered on the allotment card.
A contracting producer whose production exceeds 80
per cent, of his base production may arrange to sell
all or a part of this excess production under the allot-
ment card of another contracting grower whose pro-
duction is less than his allotment. In such cases, tax
payment warrants will be issued in the name of the
owner of the marketing and allotment cards under
which the excess tobacco is sold. Anv arrangements
made between contracting growers to utilize allotment
cards other than their own for selling tobacco are
private transactions. Contracting growlers who pro-
duce in excess of their allotment will not be permitted
to market this excess tobacco and pay the tax pro-
vided under the Kerr-Smith Tobacco Act, but may ar-
range to sell this tobacco under another contracting
grower's allotment card.

Adjustment payments to be made under the volun-
tary contracts will be based on the number of pounds
shown on the marketing card of each grower as hav-
ing been sold regardless of whether all the tobacco
sold under an individual marketing card was produced
by the person to whom the card is issued. Each per-
son to whom a marketing card is issued will be re-
quired to certify that all tobacco sold under it was
j)roduced under a tobacco production adjustment con-
tract covering his own or some other farm.

Growers who have not signed contracts should
make application for tax payment warrants at the
office of their county agent. The Kerr-Smith Tobacco
Act provides that in each county tax payment war-
rants, covering an amount of tobacco equal to 6 per
cent, of the total number of pounds covered by war-
rants issued to contracting growers, may be issued to
non-contracting growers who w^ere unable to obtain an
equitable base under a contract. Warrants issued un-
der this provision may cover all or only a part of a
grower 's production.

THE TOBACCO PRICE SITUATION

RICES for flue-cured tobacco at auction ware-
house markets, which opened for the 1934-35
season in Georgia on August 1st and in South
Carolina on August 9th, showed marked im-
provement over the prices prevailing a year ago and
averaged higher than during any season since 1927.
Prices on the Georgia markets (type 14) averaged
22.6 cents per pound compared with 13.2 cents during
the opening week of last year, 10.2 cents in 1932, and
7.3 cents in 1931, according to state reports. Press
statements indicate the opening prices on the South
Carolina and border belt markets (type 13) were at
about the same level as those in Georgia.

Total supplies of flue-cured tobacco in the United
States at the opening of markets this year, estimated
at 1,300,000,000 pounds, showed a reduction of 118,-
000,000 pounds or 8.5 per cent, below tlie supplies of
a year earlier and were 9 per cent, below the five-year
average. Production was estimated as of Auarust 1st
at 527,000,000 pounds, w^hich is 210,000,000 ^pounds
smaller than the 1933 crop, and more than 100,000,000
below the world consumption of this tobacco. Stocks
showed an increase during the year, as a result of the
large crop of 1933, but this was more than offset by
the reduction in the 1934 crop. More than 95 per
cent, of the growers of flue-cured tobacco are reported
to be under contracts with the Agricultural Adjust-
ment Administration, which call for an aggregate re-
duction of nearly 30 per cent, from a base approxi-
mately equal to the last year's production. Weather
conditions have been generally favorable and there
has been only a moderate amount of drought damage,
chiefly early in the season.

World consumption of flue-cured tobacco during
the year ended June 30, 1934, showed little change
from a year earlier. Domestic consumption increased
nearly 5 per cent, during the year, chiefly because of
the increase in the use for cigarettes, but foreign con-
sum])tion declined slightly. About 30 per cent, of the
total world consumption of flue-cured tobacco is used
in cigarettes in the United States. Approximately 60
per cent, of the consumption is in foreign countries,
chiefly in the form of cigarettes and smoking mix-
tures.

Exports during 1933-34 totaled 380,000,000 pounds
(farm sales weight), which represents an increase of
22 per cent, over the exports of a year earlier and 14
per cent, over two years earlier, but is about 10 per
cent, below the five-year average. The quantity ex-
ported last year exceeded foreign consumption for the
first time since 1930-31.

The 1934 flue-cured crop is being marketed with-
out the aid of a marketing agreement. According to
reports of the Agricultural Adjustment Administra-
tion, when the domestic buyers were invited to enter
into a marketing agreement for this crop, as was done
in the case of the 1933 crop, the buyers stated that,
owing to the improved supply situation, they were
confident the price would average ** above parity'*
without any such action being taken. Opening prices
for the 1934-35 season were about 50 per cent, above
parity.

Tkt Tobacco World

CIgnrs are the
oiohf pleasurable
sDtl economical
fonn of smoking.

BAYUK BULLETIN

VOLUME II.

SEPTEMBER 1, 1934

WtOOOUaMKT

NUMBER 16

PHULOFAX

rrhe Retailer's Friend)

SAYS

II \Dear Phil:

Sometime ago, I re-
member an article writ-
ten on "THINK BIG"
... it was great stuff . . .
why not get hold of it
and reproduce in your
column? Incidentally,
who wrote "THINK BIG?"

(Signed) M. 0. B.

OK., M. O. B. The article was
written by a close friend of mine,
Frank Tnifax, who permits a reprint
as below :

THINK BIG I

Think Big I Your brain cells are elas-
tic

Think Bio of the opportunities for
success — ^then dig.

Think Big in Dollars and Sense, not
in pennies and piffle.

Think Big of the joys in your job,
not of the trials in your task.

Think Big! A vivid imagination is
the advance-scout of actual accom-
plishment.

Think Big! You get what you go after
if you think it big enough to have.

Think Big! Big success is never a
surprise to a big man — he "think-ed"
his way into being big.

Think Big! Giant desires and pigmy
efforts equal bunk. Big ambitions
plus big endeavors equal big Suc-
cess.

Think Big! Big thoughts do not grow
a big Head but a big Head denotes
absence of big thoughts.

Think Big! The Empire State Build-
ing was not conceived by a bunga-
low-brained man. He thought big
and he Built big.

Think Big of your own faults and
Correct them. Think big of the good
points of others and imitate them.

TiiiNK Big of the power of your Smile
t.; defy defeat. Think big of the
ctriciency of your Helping Hand to
assist the aimless.

Think Big in preparation for the ruts
in the road before you decide on
your journey, but when you do start,
tlink big only of the velocity of your
Vehicle of iron determination and
the glittering goal that await* you.

Think Big —

Work Bio and

Win Big ! ! !

A 100 YEAR OLD

CIGAR STORE

Present Proprietress in Business 56 Years

On Main Street in Roslyn, L. I.
there is a little shop which has stood
there for a hundred and fifty years.
And for 102 of those years it has
been a tobacco shop.

On Main Street it is 1934. You can
tell it by the 1934 models of the cars
whizzing by. But open the door of
this little shop, with its janghng bell,
and you step back into 1884 or even
1834. Everything about the shop is
decidedly old fashioned, including the
proprietress, a motherly old lady, Mrs.
Alexander Kilpatrick, who with her
late husband took over the busmess 56
years ago.

Your grandfather would recognize
the fixtures as typical of the cigar
store furnishings of his day. Not

electricity but oil lamps supply the
illumination and a tin cup does duty
as a cash reg^ister.

On the walls still hang posters ad-
vertising brands of tobacco long since
dead and gone. One of the posters
which strikes the eye recommends
"Honest Long Cut," and depicts aj
Wild West looking gentleman m a
wide brimmed hat seated at a table
from under which projects the handle
of a gun.

Yes, decidedly old fashioned is Mrs.
Kilpatrick's shop — as old fashioned
as a Currier and Ives print or a high
wheeled buggy. But wouldn't you
like to drop in just such an old fash-
ioned shop for your favorite cigar
once in a while?

Ci^

•4.

D.B.L

(^ /tmm d^mn ateM 1997

TO THE LADIES!

If you want to produce a play that
will run 1000 nights on Broadway or
make a motor car that will outsell Mr.
Ford's, make that play or that car
one that the women will get behind
and boost. In case it's any news to
you, the hand that wields the lipstick
rules the world— and if Mr. Roosevelt
thinks he's running the United States
of America he's mistaken. The real
bosses of the good old U. S. A. are
some 20,000,000 women more or less.

If the women of America should
agree that they admire men with great
big bushy beards, Mr. Gillette ami his
fellow manufacturers of safety razors
would fold up as neatly as so many
umbrellas. If the women of America
should agree that they like to see their
gentlemen friends smoking cigars,
there would be no need of a C. B. A.
The job of boosting cigars would
be taken over by 20,000,000 active
boosters who know their stuff back-
ward.

And that brings us around to what
we wanted to say in the first place.

A UNIQUE cigar

BAND COLLECTION

The ambition of most collectors,
whether of rare books, stamps or cigar
bands, is to gather together as many
different varieties as possible. But
Myers-Cox, cigar distributors of Des
Moines, report a collector of cigar
bands in Fort Madison, Iowa, who is
building a collection made up entirely
of the bands from one popular brand
of cigars. This collector now has more
than 10,000 of these bands which he
has accumulated in the past few years.

WOULD YOU UKE A
50% SALES INCREASE?
Try J. L. SIMMS' Recipe

J. L. SIMMS, who sells for a
Peoria cigar jobber, has a nifty little
scheme for boosting the dealer's order
by a neat 50 per cent.

J. L. waltzes in on a customer,
whom he believes could sell consider-
ably more of J. L.'s brand than he
does.

"How many Usmokems today?" he
asks the customer.

"Two hundred," replies the man be-
hind the counter.

"Two hundred Usmokems," J. L.
writes the order in his book. Then he
is struck by a happy thought. "Look
here, Mr. X. I'll bet you can sell at
least 300 cigars between now and my
next call. Tell you what — let me de-
liver you, or say spot you, an extra
hundred. Then let me fix up a special
little display on the case here. If you
don't sell the entire three hundred I'm
a Chinaman. And if you do — there's
a fifty per cent bigger sale for you
and a fifty per cent bigger sale /or
me. What do you say?"

According to J. L., lots and lots of
his customers say yes. And when you
consider that J. L. carries a mighty
popular brand and gets a little extra
display on it, it isn't surprising that
he is building up some nice increases
for himself and his customers.

If some genius will discover a way to
line up the feminine vote behind
cigars, he will deserve a monument at
the hands of a grateful industry.

Maybe one way to feminine approval
would be to induce a few of the cur-
rent great lovers of the films to ap-
pear on the screen gracefully smoking
a cigar. If you can think of a better
one, go to it. The Bayuk Bulletin will
donate with enthusiasm the space to
give national publicity to your idea.

What's everybody's business i» no-
body's business. And since it's every-
body's business who's in the cigar
business to boost cigars, nobody made
it their business to do any boosting.
Therefore the C. B. A. What about
joining this band of cigar boosters —
and when you've joined, boosting to
beat the band?

BAYUK BRANDS BUILD BUSINESS

'Bayuk Phillies'

(BAYUK PHILAnELPHlAPEBFlCTO)

Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

Cigarettes Up, Cigars Down, in July

IIFi I'ollowinu- ('(Hii])arativc' data of tax-])ai(l
])r()diu'ts, iiulicatcHl ])y the iiiDiitlily sales of
stamps, arc issuod by the l^iireaii for the in-
formation of representatives of the several in-
dustries, trade journals, ete. (Fiuures for July, 1J)34,
are subject to revision until i)ul)lished in the annual
rci)ort ) :

Products —July —

Cigars (large)

Class A Xo.

(Mass B Xo.

Class C Xo.

(iass D Xo.

Class E Xo.

19 Si

aLV),:)})!),(;(i(i

44,S'2r),01H)

L>,s7(;,r)f;s

21)0,873

19 SS

:ur),:r):),2i()
2,110,1:^3

4S,0!H),908

3,672,103

277,0!)!)

Total

37S,( ):^:^J)M 400,r)l 1 ,4:)3

Ciuars (small) Xo. 13,471,720 1(),343,000

Cii^-arettes (larue) . . Xo. 22(),or)0 1!)0,000

Cigarettes (small) ..Xo. ll,3r):),3!)S,S(;o !),:)2(;, 101,1 S3

Snuff, manuf'd. ...Lbs. 2,773,!)S:) 2,So:),228

Tobacco, manuf'd. .Lbs. 25,917,013 2r),977,17!)

Tax-paid lu-oducts from Puei'to i\ico (not included
in al)ove statement) were as toUows:

Prafhiifs — »////// —

Cigars (large): 19S4 19H:i

Class A No. r),:)S7,!)00 (;,2:)3,32r)

C^lass B Xo. 203,o:)0 f)o:),ooo

Class O No. 45,050 113,000

Class D Xo. 500 500

Total

(;,S3(;,500

7,271,825

Ciirars (small) Xo. 350,000 2t)0,0(M)

Cigarettes (lar-e) . . Xo. 100,000 245,000

Cigarettes (small) ..No. (;o<t,4oo 1,117,0(M)

Tax-jiaid products from the Philippines (not in-

chuU'd in above statement ) were as follows:

ProflHcts — Jul If —

Cigars (large) 19:ii 19H3

Class A Xo. 1<;,307,220 14J25,.SS0

( 'lass B Xo. 27,5SO 12,727

Class C Xo. 11,()00 30,828

Class 1) Xo. 600

Total

l(),34b.400 14,170,035

Cigaiettes (small) . . Xo.
Tobacco numuf'd. . .Lbs.

120.!)! Ml

2,4(Mi

INTERNAL REVENUE COLLECTIONS FOR JULY

Sourer nf n rrnuc 19S4 19H:i

( 'iicars . '. $!)6(i,30(;.42 $L(r23,442.5!)

Ciirarettes 34,06S,307.2b 2S,57!',840.52

Snuff 4I)!),318.05 504,!)41.07

T o b a (• (• o, chewinu and

smokinir 4,6(;5,3!)4.44 4,67(M)12.00

(M g a ret t e papers jnul

tubes 120,87H.!)f; 77,5511.5!)

Mincellaneous. iclatiim to

tobacco 2,405.80 10.0(1

July Cigar Withdrawals 1920 to 1932 Inclusive

Julv, 1!)20

Julv, 1!)21

Julv, 1!)22

JulV, 1!)23

Julv, 1!)24

Julv, 1!)25

Julv, 1!)2()

()78,751,!)5r)
5(;4,(;04,7!)7
585,874,114

58!),17(),0-<)
5!)5.0f;3,302
575,822,!)3()
568,553,475

Julv, 1927

Julv, 1!)28

Julv, 1!)2!)

Julv, 1!)30

Jufv, 1!)31

Julv, 1!)32

561,1!)9,29<S
558,205,683
589,282,068
532,805,120
478,!)00,84!)
361,240,267

PROCESSING TAX RETURNS

Detail of collections from processing and related
taxes ])roclaimed by the Secretary of A.i»riculture
under authority of the Agricultural Adjustment Act
(Public — Xo. 10 — 73d Conuress) ai)])roved Mav 12,

1933.

Mouth of

CouiuioJifif Jul Iff t9S4

Tobacco (tax etTective October 1, 1!)33)

l*rocessing tax $2,358,1(51.25

Imj)oit compensatinn taxes ....... 40,888.80

Flooi- tax, other than retail dealers. 1,607.01

Floor tax, retail dealers 3,157.5!)

Totaly tobacco

$2,403,814.65

BETTER PRICES FOR TOBACCO

M

RICKS now being paid to South Carolina to-
bacco growers are much higher than a year
ano, and above ])ric<'s \n\n\ on the openinir day
of the market on Auuust !), ac<'oniing to the
Tobacco S(»ction, Bureau of Aiiricultuial Economics.
Reports for sales on Auirust 15 show niade jn-ices as
follows: C3L-$38.10 jK-r hundred pounds compared
with $34.50 on tlie openinir day and $28.30 last year.
C4L-$33.!)0 compared with $32.50 on the openinir day
and $24.30 last year. Similar comparis(»ns for other
grades an-: C5L-$32.10 compare<l with $30.S0 and
$20.20; X1L-$31.20 a,t.-ainst $30.20 and $1!).20; X2I.-
$2!).80 airainst $27.80 and $lf;.40; X3l.-$24.!)0 against
$22.30 and $12.!)0; X3F-$25.60 against $21.50 and
$13.50.

Primini; irrades show similar comparisons: 1*11^-
$30.70 auains't $2!).90 and $16.50; i»2L-$28.!)0 against
$24.70 and $15.10; P:;L-$24.50 airainst $18.80 and
$11.40; P4L-$17 against $10.60 and $8.10.

Marki't otTerings have consisted mostly of cntters
and lugs, including primings. Very little tobacco of
the **leaf" irrades has as yet been delivered. Leaf
grades, belonging to the B i^noup under the I'nited
States standards, are not generally used in the manu-
facture of domestic cigarettes, and may not connnand
as hiirh a ranire of pric(»s as the (' and X groups, as
(pioted, says the bureau. Bureau otticials are of the
opinion, however, that the heavy leaf i^rades will be
less abundant in propoition to tlu» total size of the
flu<''cured croj>, than usual, and that this relative scarc-
ity may have material inlluence on prices paid for
heavy leaf in comparison with the cigarette grades.

The Tobacco llcrlJ

News From Congress

_ 'AND

FtDERAL

Departments

ITTLP] difficulty is being experienced in the
settlement of complaints alleging violations of
wage and hour provisions of recovery codes,
according to officials of the Xational Recovery
Administration, and business men generally are cred-
ited with being not only willing, but anxious to comply
with the agreements.

Paying tribute to the co-operation which is being
given by industry in the settlement of labor controver-
sies, the administration has announced that in one two-
weeks period !)9() cases were settled by state agencies
without reference to AVashington.

In most of the cases, it was declared, the alleged
violations were found to be merely misunderstandings
on the part of the employers of their obligations under

codes.

The 990 cases settled involved a total of 43()0 em-
ployees to whom restitution payments amounting to
$106,732 were nuide by employers, it was said.

Figures ci)mpiled by the compliance division of
the administration disclose that since the tirst code
became effective in July, 1933, to the close of the fiscal
year on June 3()th, last, when more than 500 agreements
were in operation, less than 63,2(K) com])laints of vio-
lations had been filed against the nearly 3,tM)0,(K)0 em-
ployers of more than 24,(XK),()0() workers in the United
States. Duplications account for nearly half of this
total and investigation revealed that from 20 to 30 per
cent, of all the complaints received were cither the
work of cranks or were unfounded.

Cj3 CjJ Cj3

KGANIZED labor, opposed to reductions in
tariff rates, may do much to nullify President
Hoosevelt's plans for reciprocal trade agree-
ments with other countries, it is indicated by-
recent developments. Labor employed in industries
which will suffer from tariff cuts under such agree-
ments is said to be ])lanning to make alliances with
other groups of organized workers to prevent foreign
products coming in under reduced rates from being

marketed.

\ preliminarv test of the plan some time ago re-
sulted in labor .ioining with farmers in a move to re-
quire the use of Americiin grain in the production ot
beer and liquors, and brewery workers declined to aid
in the i)ourinir of beer into barrels made abroad.

Representatives of some of the unions have made
it known that the wtnkers in their organizations \yill
not handle imported products coming into comi)etition
with the American merchandise they produce.

September t, 1934

From our Washington Bureau 62ZAlbee Builoing

Refusal of labor to co-operate in the Administra-
tion's i)lans, it is informally admitted, might be more
potent in nullifying the reciprocal agreements than all
the protests of the manufacturers and producers wdio
would be affected by duty reductions.

Ct3 Ct) Ct)

Restoration of the two-cent postage rate in the not
distant future is seen in the steadily improving condi-
tion of the postal service, which for some time now
has been on a self-supporting basis.

Anticipating materially increased revenues as
business improved, Congress in the last revenue act
gave the President authority to abandon the present
three-cent rate whenever, in his opinion, the condition
of the Post Office Department warranted such action.

In line with his predecessors, Postmaster (Jeneral
Farlev is opposed to turning the postal service into a
revenue producer for the general Treasury, although
insisting that it should pay its own w^ay.

While some political observers believe that res-
toration of the two-cent rate just before the fall elec-
tions would add to the prestige of the Administration,
it is more generally believed that any action taken \vill
come toward the end of the year when seasonal in-
fluences upon postal revenues can be observed and an
opinion reached as to the trend of future receipts.

CS3 ttl Ct3

Serving notice that its operations will not be a
repetition of the sensational investigations and reports
of the National Recovery Review Board headed by
Clarence Darrow, the Industrial Appeals Board of the
Xational Recoverv Administration last month began
its study of complaints from small businesses against
allegecrdiscriminatorv provisions of recovery codes
and unfair acts of code authorities or recovery ad-
ministration officials.

But few^ more than a dozen out of the scores ot
complaints which have already reached the board have
been found to merit serious consideration, it was said
by officials. Manv of the complaints were l)ased on
apparent misunderstandings of code ])rovisions easily
cleared up bv correspondence or conference. Others re-
vealed that the complainants had not yet availed them-
seh^es of their right to seek redress through already
established agencies such as the deputy administrator
or their owm code authority.

LLIAN RUSSELL

2
for

5c

U. S. BOND

for /*

5c r

CIGARS

CIGARS

P. LORILLARD GO'S
Quality

2 *«•• S^

Cigars

Meeting the public's demand
for quality cigars
moderately priced

/,

^2

r.

NEW

i

j!

CURRENCY

W ^'"^^i

for

CIGARS

L vJ

5c

Our Other Popular 2 for 5< Cigars

JAMES G. BLAINE • • POSTMASTER

LA FRAOSA •

SARONA • WAR

EAGLE I

TOBACCO TKADE ORGANIZATIONS

TOBACCO 'merchants ASSOCIATION .^'^^OW^
OF UNITED STATES "^^^TJA^

JESSE A. BLOCH. Wheeling. W. Va President

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

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A. HOLLINGS WORTH, 233 Broadway New York, N. Y President

CLIFFORD N. DAWSON, Buffalo, N. Y Executive Vice President

JAMES C. THOMPSON, Chicago, III Treasurer

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

ABE BROWN. 180 Grumman Ave., Newark, N. J President

ALBERT FREEMAN. New York, N. Y First Vice-President

IRVEN M. MOSS. Trenton, N. J Second Vice-President

A. STERNBERG, Newark. N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MOR R IS LE VITONE President

SAMUEL MAGID. aX)l N. Mervine St., Philadelphia, Pa SecreUry

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS. INC.

E. ASBURY DAVIS. Baltimore. Md President

JOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y SecreUry

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN • President

HERMAN H. YAFFE, 301 Fox Building, Philadelphia, Pa SecreUry

t6

News from Congress

(Confivncd from Par/e 15)

The policy of the board, it was explained by Aiiios
J. Peaslee, chairman, will be to "deal primarily with
individual eases, and to hear only eases where a peti-
tioning" or eomi)lainin.i>' party has previously made rea
sonable efforts to pursue his rights and remedies
within existing established agencies, as, for example,
the code authority and the api)r()priate division of the
National Keeoverv Administration having jurisdiction
over the ])articular code involved.

"The board," he asserted, "could not, and does
not, in any way deprive any ])etiti()ner or other inter-
ested ])arty of any eoneurrent or independent rights
which he mav have in the courts or elsewhere, it but
may, it is ho])ed, through the review and recommenda-
tions of an inde])endent and impartial board, correct
misunderstandings and inequities which arise, and
render unnecessarv in manv instances recourse to
other governmental agencies.

"The board is not a forum for a general repeti-
tion of aiguments res))eeting the forms of codes or
code provisions which have already been diseussed in
])ublic hearings; l)ut its jurisdiction does j)ermit it to
hear uj)on a])peal evidence resjiecting the actual (»pera-
tion in practice of any j)articular code provision and
to reconnnend, if it deem desirable, changes in such
])rovisions."

AMERICAN TOBACCO IN BRITAIN

In the first six months of 1J)*U, imports of Amer-
ican tobacco into British markets totaled 4!M40 hogs-
heads, namely, 40,7r)I) Virginia leaf, 7101 Virginia
strips, 1^1] western leaf, r)21 western stri])s, and 12
Maryland, etc. In the tirst six months of li>33, the
aggregate reached 52,9.')!) hogshea<ls, comprising 47,140
Virginia leaf, 2918 Virginia strips, 12.*»0 western leaf,
1071 western strips. Deliveries in the first half of
1934 amounted to 01,810 hogsheads, against 47,499
hogsheads in the first six months of VXV.\, and con-
sisted of 51,390 Virginia leaf (37,017 a vear ago) ; 7593
Virginia strips (7144) ; 14SS western leaf (13i:5) ; 1.322
western strips (1407); and 17 .Maryland, etc. (IH).
Stocks on June .30, 1!>.34, stood at l.")0,102 hogsheads,
namely, 10.'),7I>0 Virginia leaf, 34,085 Virginia strips,
3298 western leaf, f)37f) western stri])s, and 1.') Maiy-
land, etc. At the same date last year, stocks reached
175,010 hogsheads, consisting of 122,1(»1 Virginia leaf,
40,174 Virginia strips, 481(> western leaf, 7!H)5 western
strij)s, and 20 Maryland, etc. The June market con-
tinued (piiet. Imports totaled 8880 hogsheads, and de-
liveries 17,4.58 hogsheads. (Alfred Xutting, Clerk,
American Consulate (leneral.)

MAKING 'EM AT FAIR

The exhibit of the (leneral Cigar Company at the
Chicago World Fair shows cigars actually produced
from the green leaf stage to the finished product, and
York refrigerating etpiipment plays an impoitant ])art
in processes essential to the pro])er curing of the to-
bacco leaf. At this exhibit are installed two York
Freon 4x4 compressors of 5 111*., using 2S0 feet of
coils for a spray type unit.

The Tobacco World

NBC

RED NETWORK
9:30-10 P.M., E. D. T.

New York WEAF

Hartford WTIC

Providence WJAR

Worcester WTAG

Portland WCSH

Philadelphia WFI-WLIT

Schenectady WGY

Buffalo WHEN

Pittsburgh WCAE

8:30-9 P. M., E. S. T.

Baltimore WFBR

Washington WRC

Cleveland WTAM

Detroit WWJ

Cincinnati WSAI

8:30-9 P. M., C. D. T.

Chicago WMAQ

7:30-8 P. M., C. S. T.

St. Louis KSD

Des Moines WOC-WHO

Omaha WOW

Kansas City WDAF

Cigars Up Nearly 163 Million in 7 Months

Cigars:

Class A—

United States .
Puerto Rico . . .
Philippine Is. .

Total

Class B—

Unit(Ml States
Puerto Pico .
Philippine Is.

Total ...

— Decrease

Little Cigars:

1st 7 Mas,

--Increase

United States ..

2,1.5.'),4(;9,8.50

-1-

Quaiititij
105,127,80)0

Puerto Kico . . . .
Philippine Is. . .

.32,1.3(),.320

_..

1,7.50,000

Total

128,.3.32,.505

49,122,005

Cigarettes:

2,315,9.38,075

+

1.50,005,805

United States . .
Puerto Rico . . . .

Philippine Is. . .

25,(^33,070

+

10,200,.530

8:^,S,4.50

-.^

1,0.50,()00

Total

254,407

+

12f),400

135,51 0,0.')3 +
1,401,000 —

19,370,000
403,000

130,917,053 -h 18,907,000

73,852,205,730 + 0,010,951,410
2,414,2.')0 -h 417,(i.50

1,448,.520 + 61f),3.50

73,850,1 28,.5()0 + 0,617,985,410

20,725,9.33

9,3.30,330

Class C—

United States . .
Puerto Rico ....
Philipj)ine Is. . .

295,747.4.30

401,1.50

92,.502

+

1,072,000

109,120

21,200

Total

290,241,148

1

1,1.59,800

Class D—

United States . .
Puerto Pico ....
Philippine Is. . .

20,13.5,040
1,.5(K)
1,250

3,108,.308

1,000

76

Large Cigarettes:

United States . .
Puerto Rico ....
Philippine Is. . .

Total

SnufT:

AU U. S. (lbs.) . .
Tobacco (mfd., lbs.) :

Cnited States . .

Philippine Is. . .

Total

87,108,988 +

;U0,000 —

200 —

85,700,9.53

9.5,000

1,737

87,509,188 + 85,004,216

22,482,914 + 1,354^173

182,618,917 +

*^3

2,233,425

80

182,618,940 + 2,233,345

Total

Class E—

T'nited States . .
Puerto Pico . . . .
Philippine Is. . .

Total

20,1.38,.390 — 3,107,444

1,712,758

436,050
534

1,71.3,.513

435,510

T(»tal .\11 Classes:

CnitcMl States . .

2,498,098,70)0

-h

112,855,984

Puerto Rico ....

33,377,420

+

809,520

Philip]>ine Is. . .

128,081,479

+

49,227,003

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Grand Total . . . 2,00O,757,().59 -f 102,893,107

Name

Street No.
P.O.

^tate

September t. /g.?^

Establiihed 1886

"BEST OF THE BEST

9f

MaBufacturod

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Florida

OUE HIOH-GEADE NON-EVAPORATINO

CIGAR FLAVORS ^ .u . w *

Make tobacco melCow and smooth In charactar
and Impart a most palatable flavor

FUVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BBTUN. AIOMATIZEI. BOX FLAVOES. PASTE SWEETENEIS

FRIES Sl BRO., 92 Reade Street. New York

RoScSoiwi^ivs^ivt^^^

iTUnuiirgngnOTO

'VSWfJ^JJ^^J^^"

Classified Column

The rate foi this colutnn is three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c.) paysblt
strictly in advance.

^MrrT"t". rv»: '^'ynivi'.u'w ir.riAt.iTiU. 'ujtiiiagrii

CAiL.

iiitni<m^<rf»fC,Trit\"rivi:i%<i:r

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while line.
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30.000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3-story and concreted basement building adjacent to P. R. R.
freight station in York, Pa. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. See A. Kauff-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau. JlV'VorarY

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

I?«»iristration, (see Note A),

$5.00

Sonrch, (see Note B).

1 on

Tr«nsfer.

2 00

DnpHpRfp r'prtifipRte.

0 00

Note A— An allowance of $2 will be made to members of tbe 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.

NEW REGISTRATIONS

TATNUCK: — 46,350. For cigars. Protective Union, Inc., Worces-
ter. Mass.. August 3, 1934.

CATHCORT: — 46,352. For all tobacco products. Garcia Grande
Cigars, Inc., New York, N. Y., August 9. 1934.

Inc., New York. N. Y.
York, N. Y, August 14,

TRANSFERS

RAJAH: — 20,815 (U. S. Tobacco Journal). For cigars. Registered
January 18, 1899, by The Calvert Litho. Co., Detroit. Mich.
Through mesne transfers acquired by the Odin Cigar Co., Detroit,
Mich., and re-transferred to the Masterpiece Cigar Co., Grand
Rapids, Mich., June 11, 1934.

LURIDO: — 28,879 (Trade-Mark Record). For cigars, cigarettes and
tobacco. Registered .August 21, 1903, by Geo. Schlegel, New York,
N. Y. Through mesne transfers acquired by Meritas Commercial
Co., Inc., New York. N. Y., and re-transferred to Meritas Cigar
Co.. New York, N. Y., August 14, 1934.

MARILYN MILLER:— 41,543 (Tobacco Merchants' Association).
For all tobacco products. Registered January 2. 1920. by Bernard
Lett. Boston, Mass. Through mesne transfers acquired by Meritas
Commercial Co., Inc., New York, N. Y., and re-transferred to Meri-
tas Cigar Co.. New York, N. Y., August 14, 1934.

WILL-O-WISP:— 41,541 (T. M. A). For all tobacco products.
Registered December 1, 1919, by Hartmann Pacific Co., Inc., New
York, N. Y. Through mesne transfers acquired by Meritas Com-
mercial Co.. Inc.. New York, N. Y., and re-transferred to Meritas
Cigar Co., New York. N. Y., August 14, 1934.

HOOFFSTETTER'S MILD IMPORTED ROYAL BLUNTS:—
45,960 (T. M. \.). For all tobacco products. Registered Novem-
ber 19, 1931. by Meritas Commercial Co., Inc., New York. N. Y.
Transferred to Meritas Cigar Co., New York, N. Y., August 14,
1934.

FERBSTEIN'S MILD IMPORTED ROYAL BLUNTS:— 45.959
( T. M. .\.). For all tobacco products. Registered on November
19, 1931. by Meritas Commercial Co.,
Transferred to Meritas Cigar Co., New
1934.

ALCORA:— 32,316 (Tobacco Leaf). For cigars and cigarettes.
Registered October 17, 1906, by Bernard Lett & Co.. Boston, Mass.
Through mesne transfers acquired by Meritas Conmiercial Co.,
Inc., New York, N. Y., and re-transferred to Meritas Cigar Co.,
New York. N. Y.. August 14, 1934.

LOVE DALE:— 21,782 (Trade-Mark Record). For cigars, ciga-
rettes and tobacco. Registered November 2i, 1899, by American
Litho. Co.. New York, N. Y. Transferred to Meritas Commercial
Co., Inc., New York. N. Y., and re-transferred to Meritas Cigar
Co.. New York, N. Y., August 14. 1934.

CLAY MONTAGUE:— 40.606 (T. M. A),
cheroots and tobacco. Registered April
Strasser & Voigt Litho. Co.. New York,

transfers acquired bv Karl O. Nesslinger, New York, N. Y., and
re-transferred to El Oriente Cigar Co., New York, N. Y., August
14, 1934.
HILIAN:— 43.602 (T. M. A.). For cigars. Registered November

13. 1923, by C. H. Hilbert & Co.. New York, N. Y. Through mesne
transfers acquired bv Karl O. Nesslinger. New York, N. Y., and
re-transferred to HI Oriente Cigar Co., New York, N. Y., August

14, 1934.

LA FLOR DE FRANCISCO BOLANO Y CA:— 21.695 (Tobacco
World). For cigars, cigarettes, cheroots and tobacco. Registered
February 20, 1911. by F. Bolano & Co., Chicago, 111. Through
mesne transfers acc|uired by Karl O. Nesslinger, New York, N. Y.,
and re-transferred to El Oriente Cigar Co., New York, N. Y.,
August 14. 1934.

LA FLOR DE F. BOLANO Y CA:— 21,696 (Tobacco World). For
cigars, cigarettes and tobacco. Registered February 20, 1911, by
F. Bolano & Co., Chicago. 111. Through mesne transfers acquired
by Karl O. Nesslinger, New York, N. Y., and re-transferred to
El Oriente Cigar Co., New York, N. Y., August 14, 1934.

For cigars, cigarettes,
22. 1918. by Heywood,
N. Y, Through mesne

SEPTEMBER 15, 1934

Lr<OAl

The importance of attractive and dependable containers for
fine cigars IS recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la.. Pa.
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION

LIMA OHIO

A Natioi\WiA«

virvice

York, Pa.
Chicago, III.
Detroit, Mich.
Wheeling, W. Va.

f

r

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PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA., PA.

After
"^nothing

all
satisfies like

a good cigar

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box--and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

IGARS\

Remember thsf Regardlew oi Pnct I

THE BEST CIGARS I

AKE rAOLCD IN J

WOODEN BOXES ^

THE TOBACCO WORLD

Vol. 54

SEPTEMBER 15. 1934

No. 18

TIE TJFTINO of the stay which has been hold-
lui*; \\\) tlio o|KMatioii of tlio inerchandisini;- ])ro-
visioiis since the ('iji:ar Manufaeturers' Code
was approved, seems to be the hist step in the
move to restore the cii^ai" business to its former lii,i;h ])0-
siticm of a di.unified trade, minus the ])riee-cuttin.u,-, ehis-
elinj^ and other un(h'sirabh' features wliich for a lon<^
time threatened to ])rin<j: it to disrepute. Members of
the industry in all departments — manufaeturinu-, whole-
salinii: and retailin<>; — have cause to render all ])raise
and all thanks.nivinu: to Frank Will and the other zeal-
ous la))orers on the Merchandise Connnittee for their
success in finally havini:: these profit -assuring ]>rovi-
sions incor])()rated in the code of fair j)ractice govern-
ing the sale of tobacco products. The industry is to be
congratulated.

Cj3 Ctj Cj)

Vn INDUSTRY continues to be one of the
leading users of the air for advertising i)ur-
])oses. From the Trade News Service of the
National l^>roadcasting (\)m])any we have re-
ceived tables showing the ranking of twenty-four in-
dustries according to amount of network broadcast
advertising for the first six months of VXU, as well as
for complete years ])ack to and including 11)28. In that
year cigars, cigarettes and tobacco were tenth in the
"list. Iiri!)2I) tiiey moved up to fifth i»lace; in VX^i) into
fourth; and the industry was in third place in 1931 and
19.T2. Dropping back into fourth place last year, the
industrv returned to the third ])osition during the first
six months of this year. Comparing the exjH'nditures
for the first six nionths of last year and this year,
cigars, ciirarettes and tobacco are rejjorted to have
spent $2,(K)8,181 in 1934, as contrasted with $1,74(),9:U
in 193:5, an increase of $321,247, or 18.4 i)er cent. As
the feHow said, the ])rograms certainly ought to be
good, with the network expenditures running into im-
portant money like that.

CS3 Ct3 Ct)

HAT'S a swell idea of Joseph Kcdodny's, send-
ing out those eartoons from which even he who
runs mav read tin- dire results from the viola-
tion of ihe industry's code of lair practices.
The first shows a rat gnawing at the foundations of the
trade The rat is labeled '*The (Miiseler" and the car-
toon is entitled '' Kxterminate Him." Mr. Kolodny,
who, as evervone knows, is chairman of the \\ holesale
Tobacco (V)de Authority, promises other cartoons
depicting the code violator as a chiseler.

**It is the intention of the National Association of
Tobacco Distributors, Inc., to circulate these cartoons
widely through its many jobber members, as through as
many other outlets as it is possible to reach.

**It is pro])osed that these circulars be distributed
through the National Association members and whole-
salers and retailers who care to add their aid to this
movement through mailings, inserts and general dis-
tribution.

*'Cost of these circulars will be determined by the
quantity ordered through the association. The maxi-
mum ])rice, however, will not exceed $4..j() per thousand,
and may be brought down to as low as $3.50, depend-
ing ui)on the total number ordered for distribution.
All these circulars will be distributed C 0. 1). in accord-
ance with the ruling of the National Association that
no merchandise mav be bought for resale. The asso-
cialion is i)leased to act as a clearing house for this
distribution, in order that this evil may rapidly be
eliminated, and so that such distribution may be made
at the lowest possible cost."

^^O^M ^^^^^ a^^^^

CS3 Cj3 CX3

()W to get the best out of a cigarette" is
another of the interesting chapters in Otis
xMlen Kenvon's booklet, ''Theorv and Facts
of Cigarette Smoking,'' which we mentioned
in our last issue. ''There is one best way," the author
writes, "to smoke a cigarette in order to get the full
flav(»r and the least amount of irritation. There are a
few people in the world who have learned by experience
and supersensitive taste how to smoke any given cig-
arette and get the best results. Hut now that science
has explained the causes of irritation, it is easy to pre-
scribe for everybody a method of smoking which will
furnish a maximum of pleasure with a mininmm of
unpleasant after-effects.

"For any given cigarette, the one great thing to
watch is the temperature of the smoke, which in general
is determined by the following things: (1) the method
(»f lighting; (2) the rate of smoking; (3) holding the
cigarette with the lighted end up; (4) the unburned
length of the cigarette.

"Therefore, the simple rule for getting the most
l»leasure out of smoking is to light at low temperature,
smoke slowly, hold the lighted end up when not smok-
ing, and stop when the cigarette is between one-half
and two-thirds consumed.

"Behind these simple rules within the control of
the smoker, the temperature of the smoke is affected
by the inirredients, such as tobacco, paper, and flavoring
materiaL It also is greatly atTected by the tightness of
rolling — the looser the cigarette, the hotter the smoke."

The TOBACCO WORLD („UbU|hcd^.^^^^
?bV/L1..^.o"t\t"';n|r;;i'i2'-.h.°.o^Jicl1„du^^^^^^^^ ?3.50 . year. Entered as second-class ma.l matter.

Delm^r 22, 1909, at the Poat Office. Philadelphia, Pa, under the Act of March 3. 1879.

Wage-earners Increase in Cigar Plants

lAGE-EAKXER OTiii)loynRMit in ostablishiiients
I oniiaii'od ])riinarily in tho niannfacture of
I ciiiars in the rnitod States incroasocl from
:MaiTli to Soptonibor, llKl'?, accordini;- to a re-
port coni])ikMl from a ])roliminary tabulation of data
collected in the Hiennial Census of Manufactures taken
in 1934, released today l)y Director AVilliam E. Austin,
Bureau of the (\Misusi l)e]mrtment of Connnerce. The
ti«»-ures for the linal niontiis of the several (luarters of
the vear show 49,388 wage earners at work in March,

r)4,0<X) in June, r)7,G2o in September, and r)4,(;8G in
December.

(Mgars to the value of jfi;]."),.')?^?') (at f. o. b.
factorv ])rices) were made by these establishments in
11)33. *This was a decrease of 39.S per cent, as com-
l)ared with $225,149,342 reported for 1931, tiie last
l)receding- census year.

Statistics for 1933, with comparative^ figures for
1931, are given in the following table. All figures for
1933 are preliminary and subject to revision.

TABLE 1— SUMMARY FOR THE INDUSTRY: 1933 AND 1931

Number of establishments ....
Wage earners (average for tlic

year)'

Wages -

Cost of materials, fuel, and
purchased electric energy '

Products, total value -

Cigar boxes:

Number*

\'alue ='

Other products, value

Receipts for custom and con-
tract work

Value added by manufacture*

1933
76

3.4(«

$1,7()7.215

$2,190,183
$5,809,940

65.340.435

$5.(. 12.502

$250,174

$1,204
$3,079,757

Per cent, of
increase (+)
1931 or decrease ( — )
92 *

3.777
$2,504,490

$3,472,942
$8,859,440

80.140.188

$8,507,852

$351,322

$20()
$5,380,498

—9.8
—31.1

—36.9

—24.1
—34.0
—27.1

+375.2
—31.7

♦Per cent, not computed where l)a>c i> lc:>> than 100.

*Xot including salaried ot^cers and employees. Data for such

officers and employees will be included in a later report. The item
for wage earners is an average of the numbers reported for the sev-
eral months of the year. In calculating it, ef|ual weight must be given
to full-time and part-time wage earners (not reported separately by
the manufacturers), and for this reason it exceeds the nuniber that
would have been required to perform the work done in the industry if
all wage earners had been continuously employed throughout the
year. The (juotient obtained by dividing the amount of wages by the
average number of wage earners cannot, therefore, be accepted as
representing the average wage received by full-time wage earners. In
making comparisons between the figures for 1933 and those for 1931,
the possibility that the proportion of part-time empU>yment was
larger in one year than in the tither should be taken into account.

* Manufacturers' profits or losses cannot be calculated from the
census figures because no data are collected for certain expense items,
such as interest, rent, depreciation, taxes, insurance, and advertising.

* Does not include data for cigar boxes made as secondary prod-
ucts by establishments engaged primarily in the manufacture of other

commodities.

* Value of products less cost of materials, fuel, and purchased

electric energy.

Cigar Box Employment Grows Steadily

AGE-EARXEK einployinont in the mannfac-
tiire of ciirar boxes increased from (luarler to
<iuarter during li>'^'5» aecordin.1,^ to a pre-
liminarv report conii)ile(l from data oolloeted
in the Biennial Census of Manufactures taken in 1934,
released todav bv Director William L. Austin, Bureau
of the Census, Department of CVnnmerce. The fi.u^ures
for tlie final months of the several quarters are as
follows: March, .T2()7; June, :;:U1); Septeml)er, 3o20;
December, Xul. The trend from March to September
was in line with that shown by the fi,«rnres for 1931,
the last ])recedin,u: census year, Init the upward move-
ment from Septeml)er to December in 1933 was in con-
trast with that which took place during the same

period in 1931, when employment droi)ped from 383G
in Septendjer to 3()9f) in December.

The production of cigar boxes in 1933, (m, 340,435,
shows a decrease of 24.1 per cent, as com])ared with
8b,140,lSS rep(»rted for 1931. The report shows a
somewhat higher rate of decrease in value, liowever —
34 i)er cent, from $8,507,852 in 1931 to $5,G12,502 in

1 933.

This industry, as classified for census purposes,
end)races all establishments engaged primarily in the
manufacture of cigar boxes made in whole or in i)art
from wood as a material.

Statistics for 1933, with comparative figures for
1931, are given in the following table. All figures for
1933 are ineliminary and subject to revision.

TABLE 1 SUBOIARY FOR THE INDUSTRY: 1933 AND 1931

1933

Number of establishments <'4')

Wage earners (average for the

year)* 53.684

Wages = $29,557,579

Cost of materials, containers.

fuel, and puchased electric

energy' ^$7M85.301

Products, total value' $137,204,322

Cigars $135,576,475

Other prt>ducts $1,687,847

Value added by manufacture* $05,779,021

r

er cent, of

1931 decrease ( — )

1.003

—39.2

08.182

21.3

$40,074,013

—35.8

$119,295,138

—40.0

%227M><,fM2

—39.0

$225,149,342

—39.8

$2,199,490

—23.3

$108,053,094

—39.1

' Xot including salaried officers and employees. Data for such
officers and employees will be included in a later report. The item
for wage earners is an average of the numbers reported lor the sev-
eral months of the year. In calculating it. equal weight must be
given to full-time and part-time waKc larners (n«»t reported separately

by the manufacturers), and for this reason it exceeds the number
that would have been required to perform the wt»rk done in the in-
dustry if all wage earners had been continuously employed through-
out the year. The cjuotient obtained by dividing the amount of wages
by the average number of wage earners cann«>t, therefore, be ac-
cepted as representing the average wage received by full-time wage
earners. In making comparisons between the figures ft)r 1933 and
those for 1931, the p».s>ibility that the proportion of part-time enjploy-
ment was larger in i»ne year than in the other should be taken into

account. , , i /

* Manufacturers* profits t)r losses cannot be calculated from tne
census figures because no data are collected for certain expense items,
such as interest, rent, depreciation, taxes, insurance, and advertising.

•Including $8,410,813 for 1933 and $15,534,404 for 1931, paid as
internal-revenue tax. This amount is included in cost of materials as
well as in value of products in order Xo avoid inflating the item for
"Value added bv manufacture" (as «lefmed in footnote 4).

* N'alue of products less cost of materials, containers, fuel, and
purchased electric energy.

The Tobacco World

Regulations Governing Cigarette Prices

ITK National Keeovery Administration lias just
released an amendment to the Emerj»ency Or-
der establishing- minimum j)rices for ci*!:ar-
ettes, re<|uiiin.u: that in states where a stamp
tax is imposed u])on the sale of ciji^arettes, the amount
of the stamp must be added to the established minimum
price: thus in states having a two-cent tax, the retail
unit i)rice will be fifteen cents. Multi])le sales of two
])acka,t!:es will be twice fifteen cents or thirty cents, less
T) i)er cent., net retail ])rice of two packaji:es will thus
l)e twenty-nine cents, (^arton ])rices will be ten times
fifteen cents or a dollar fifty, less 8 per cent., or a
dollar thirty-ei^j^ht net.

In states bavin*;: three, four and five-cent stamp
taxes, the amounts will be computed by the same
formula: add the state tax to the unit j)rice and when
multiple sales are nuide, a discount of 5 per cent, may
be deducted fiom the sum of the multi])le sale when
one dollar and under, or a discount of 8 per cent, may
be deductetl when the sum of the nmltiple sale is over
one dollar.

This order a])plies to all ci^j^arettes and ])rohibits
the bo()tle.n<»in«;" of ci<;arettes across the lines of states
imposint;' stamp taxes upon cijjfarettes within its state
boundaries. ('i.u:arettes cannot be sold from a state
havinu; no stamp tax to a consumer within a state hav-
ing such tax without addinji: the amount of the tax.

Following is the text of the official release from
XRA:

**The amount of any state tax on cigarette sales
must be added to the minimum price established under
the retail tobacco trade code, according to a ruling
made i)ublic today by the National Recovery Adminis-
tration. The ruling applies to all sales in a state levy-
ing such a tax, regardless of whether the seller is
actually located within the state. The ruling will be-
come elTective September 17.

"On July 12, the Administrator !ssTie<l an order
tem])orarily fixing the minimum retail price for cigar-
ettes. This order was issued to ])revent the practice
of usini!- cigarettes as 'bait,' a practice which was
tending to eliminate the small enterprise from tobacco
distribution. However, in those states imjiosing a
stamp tax on cii^arettes, the amount of the tax is large

enough to ])e'.'mit a continuation of this practice
through the {d)soi-pti<)n of the tax by the dealer.
Furthermore, a dealer located in one state mav sell in
another state imposing a tax, avoiding the tax entirely,
and forcing a competitor within the state, in order to
meet his price, to suffer a su])stantial loss. Therefore,
the existing order has tended to ])romote fair com-
petitive practices only in those states having no tax
and the amendment ])roposes to extend this protection
to all states. To ])ermit the absorption or avoidance
of a tax which may amount to as much as 38 per cent,
of the selling price is considered beyond the bounds
of healthy price com])etition.

*'The effect of this order will be to provide a uni-
form com])etit!ve base. Tn other words, for brands
on which the minimum pi'ice amounts to thirteen cents
l)er package, two packages for twenty-five cents, and
a carton for $1.20, the minimum j)rice in a state im-
j)osing a stamp tax of two cents per ])ackage on the
cigarettes will automatically become fifteen cents per
package, two ])ackages for twenty-nine cents, and a
carton for $1.38. A ])erson located without the state
must conform with the minimum jirices of the state in
which he makes his sales.

"It is expected that the order will remove the un-
fair com])etition now existing as a result of interstate
sales being made by the so-called cigarette 'bootlegger,'
and at the same time etTectuate the })urposes of the
original order fixing the minimum retail prices for
cigarettes. The text of the amendment is as follows:

'* 'In computing minimum unit prices, in case of
anv sale to a consumer located at the time of such
sale in a state imposing a stam]i tax on cigarettes or
the sale thereof, such minimum unit ])rices shall be
computed juirsuant to ])aragraph 2 and the amount of
such stamp tax, if not paid by the consumer, shall,
whether the seller be located within or without such
state, be added to the uiiuimuju unit price so deter-
mined.

** *Tn computing minimum prices in case of any
such sales of more than one unit of the same article,
minimum unit ])rices calculated on the foregoins: basis
and including the stamp taxes shall be multiplied and
be subject to discounts as provided in paragraph 2.'

f»

Stay on Merchandising Provisions Lifted

II Fi National Recovery Administration to<lay
approved regulations submitted by the National
Tobacco Council, Inc., for handling the filing
of prices antl discounts as provided in the so-
called "cigar merchandising plan" of the tobacc») trad(»
codes, an<l ordered the o]>en price provisions of the
code into immediate elTect.

The codes for tlu^ cigar manufacturing industry,
the wholesale tobacco trade and the retail tobacco
trade each contained the cigar merchandising |)lan
(whereby manufacturers are permitted to establish
minimum retail i>rices at which their products may
be sold, with specific discounts to be allowed each step
In distribution). That plan ])rovides for an open price
association; tmt at the time the codes were approved,
there was no machinery ade(|uate to handle th^ detail
work involved. The Administration, therefore, in ap-

Septcmher 15. 1934

proving the codes, in each case ])rovided that the open
price provisions should be stayed.

The National Tobacco (V)uncil, Inc., was formed
bv the tobacco trades primarilv to handle distribution

*

of the tiled j)rice and discount lists. The Councd
drafted a plan for "confidential treatment and simul-
taneous distribution" of such lists; and today's order
officially approves it.

As diafted, the cigar mereliandising plan provided
waiting periods between the filing of ])rices and their
elTective date. Those waiting ])eriods also were stayed
by the Administration when the codes were approv^ed;
and those stays still are in effect.

Today's order provides that cigar numufacturers
shall file their ])rice lists "forthwith," and that job-
bers and sub-jobbers shall file theirs within fifteen
days.

pHIbADElij

MIA.

*«,«^^Nwr

BAYUK BUSINESS BITS

JOS. NFAVT^fAN, vico-prosidout of Rayuk Ci-
gars, Inc., in cliari-e of sales, has rotnnuHl after
a well-dcsorvod vacation of t^vo weeks in the
Poconos. He is l>ack at his desk, disphiying
more than his nsnal nnnsnal vigor, the resulting bene-
fit of his stav in the munntains . . . Ralph (S: Klein
Cigar Co., of Lafayette, Ind., are being assisted by
0. M. Bristow, Baynk salesman, on a drive tor in-
creased distribution for Bavuk l»rands in that terri-
torv . . . Charles F. IVn-ker Cigar Co. continue their
progress in the ex])ansion of the sale of Bayuk brands
in the Detroit market, with the assistance of Koy Bark-
man, Bavuk territorial manager . . . B. A\ . B>urnsi.lc*
is en roiite to Charleston, AV. Va., to assist in promo-
tional work on Bavuk brands, now being distributed l)y
SchuUck-Taylor Co., at Wheeling.

G. H. P. NEWS NOTES

A. JEXKS, assistant sales manager for (i. H. P.
Cigar Co., has returned from his combination
business and vacation sojouni in the Midwest
and is now helping to l)oost business for Kl
Producto and La Azora in New England. He brought
back glowing re])orts from Detroit and other points
he touched while he was combining business with ])leas-
ure Frank P. Will, executive vice-])resident, was

delighted with the final lifting of the stay otMhe mer-
chandising provisions in the Cigar Code, t rom the
beginning he headed up the committee having m
charo^e the working out of the merchandising provi-
sions'' . . . La A/ora has ])urs1 forth in newspaper
advertising in all the cities where tins ])opular l)raiul
has distribution. The iirst insertion was on September
11th, and it goes without saying that coi)y and layout
were uj) to the characteristically high (J. H. 1 .
standard.

Mannie Perez, of Marcelino Pimi z & (N», Tami)a,
manufacturers of Ked<'ncion and other famous clear
Havana brands, wa> in town last week visiting his many
friends amonir the jobbeis and retailers here. Mannie
reports business with his firm is going along nicely,
with good prospects for increased business within the
next few wrecks.

(>.'

Trade Notes

The Eovalist factory (Grabosky Bros., Inc.,) N.
Second Stre*et, is running at a steady pace keei)ing up
with the demand for their Koyalist brand, which has
increased in popularity tremendously since the recent
advent of the punctured head on all sizes of this brand.

Herman Abrams, Medalist representative, has
just returned from a trip through Eastern Pennsyl-
vania, and oi)ened some new jobbing accounts on his
brand. Yahii & McDonnell, local distributors ot tho
brand, report business increasing on this brand.

John AVagner & Sons, 233 Dock St., importers
and distributors, report business holding a good steady
pace, with some ])rands increasing. The Don Sebastian
brand, clear Havana made-in-bond, is showing a par-
ticularly good increase in demand throughout this
territory.

Ben C. J. Luinlev, factory rei)resentative for the
Garcia v Vega factory, has just returned from a trip
through* New York State and re])orts the usual highly
successful trip. Garcia y Vega cigars, distrdmted here
by Yahn & McDonnell, have been increasing in dis-
tribution and sales.

James Stillwell, popular salesman of the \ aim 6:
McDonnell staff, was seriously injured m an automo-
bile accident on September Hth, sutT»'ring a brok.'ii
collarbone and two fractured ribs. We are glad to
rei)ort that Mr. Stillwell is recovering nicely and ex-
pects to soon be able to resume his duties.

\nion"' recent visitors in Philadelphia calling on
the tVade were: James Heaney, of IL'iiry Clay & J';«*»^
and Co., in the interest of Corona; Abe Caro ot Op-
timo fame; Steve Hortz, of Haddou Hall, and Harry
Rogers, of S. Furgatch y Ca. All reported good busi-
ness on their brands with excellent prospects tor in-
creased fall business.

Tkt Tobacco World

Philip Morris Gives Retailers' $25,000

Schulte and United Contribute $5,000 Each

IIK Xiitiotial Code Aiidioritv for tlio IJotail
Tobacco Trade announced today the Philij)
Morris Co. had again come to the aid of
the retailers at a critical time and made this
substantial advance to their cause. How to secure
adecpiate temporary linances to support the adminis-
trative and comi)liance boards of the Code Autiiority
has been an extremely difficult prol)lem for the re-
tailers to solve. The retailers' budget and i)lan of
assessment is pending a[)proval of N. K. A. It is
understood the budget and plan of assessment sub-
mitted by the retailers is sufficiently comprehensive to
centralize control of all expenditures of both the Na-
tional and State Code Authorities, involving more than
eight hundred thousand outlets, if approved.

The original collection plan entailed concurrence
and co-o[)eration of the cigarette manufacturers. It
])roposed making collection of the assessment by add-
ing nine-tenths of a cent a thousand to the wholesale
price of cigarettes — the sum so collected from the re-
tailers to be turned over to the retailers' Code Author-
ity. This indirect method of collecting, aside from
being the simplest and least expensive, would have as-
sured an equitable distribution of the cost of adminis-
tering the Code, as no retail outlet could have escaped
payment of its just share of the expense, and it would
liave netted ample funds to insure enforcement of the
Code without anv additional or local assessment of any
kind.

Most cigarette manufacturers agreed to co-operate
under the plan, but a few, though agreeing the i)lan
was practical, api>areiitly could not see their way clear
to g() along witii it. The indecision of these manufac-
lurers compels the Hetailers' Code Authority to adopt
another method of collecting Code assessments. In
all likelihood, tlu' assessment will ))e added to all in-

voices for merchandise in the form of stamps amount-
ing to one-tenth of one per cent, of the total wholesale
price.

The original plan had the ai)parent enthusiastic
support of N. R. A. Changing the method of collecting
the assessment brings with it delay, as the advisory
boards will again be called upon to study and review the
plan. Delay at this juncture, while establishing Code
enforcement agencies, collecting data and evidence vi-
tally necessary to preserve the minimum price for
cigarettes beyond October 13th, as well as promulgat-
ing the merchandise provisions in the Cigar Code, could
indeed be considered a major setback for the Betailers'
Code Authority.

While ado])tion and apjnoval of alternative plans
for collecting assessments are pending, the adminis-
tration of the Code must go on, and money must be
in hand (juickly for this ])urj)Ose. Otherwise, all
the advantages so far gained will be lost and there will
be a return to the old chaotic conditions.

A call went forth and continues to go forth to all
retailers, asking them to come to the aid of their Code
Authoritv bv sending in voluntarv contributions. The
sum needed is a large one, l)ut a big job has to be done
as it is national in scope.

When the IMiilip Morris Co., who have always
evinced every friendship for the retailers, learned
the finances of the Retailers' Code Authority were in
a critical state, thev immediatelv volunteered the sub-
stantial advance of $2r),()()(). I). A. Schulte, Inc., and
the Uniti'd Cigars Stores advanced $.')()()() each. All
retailers are asked to impose voluntary assessments
njion themselves and send the money to the National
Code Authoritv for the Retail Tobacco Trade, Room
1(322, Woolworth Building, 233 Broadway, New York

Resolution on Minimum Prices

of which are owned and operated by small merchants,
and

\Viikhp:as, the number of those dependent upon tin*
retail tobacco trade for a livelihood is cunsideral)ly
in excess of l,(MHl,(M)() persons, and

WnKHKAS, the Administrator for Industrial Recov-
ery, in a])proving tiie Code of Fair Competition for
the Retail Tobacco Trade and the Administrative Order
of July 12th, IIKU, establishing minimum pric(»s on
cigarettes recognized that the very existence of the
retail tobacco trade depended upon the elimination of
existing viciously unfair price-cutting practices, and

WiiKHKAS, the said establishment of such minimum
prices for cigarettes resulted in stabilizing prices at
the then prevailing levels, although minimum \vages
were established approximately 1') per cent, higher
than those in other retail codes, and it is estimated the
trade will incur a 10 jhm- cent, increase in payroll.

Now, TiiKHKFoHK Bk 1t Rksoia'kd, that the said
National Cotle Authority for tiie l?etail Tobacco Trade,

heartily endorses the acts of the Administrator for In-
dustrial Recovery, (jeneral Hugh S. Johnson, and i)eti-
tions the President of the United States that the pres-
ent Administrator be retained to perpetuate consist-
ently the policies heretofore inaugurated tor the con-
tinued existence of the hundreds of thousands of small
merchants deiiendent U])on such policies; be it

Fi'KTiiKK Resolvkh, that it is the conclusion of the
said Code Authority tlnit the discontinuance of loss
limitation ])rovisions in the Code for the Retail To-
bacco Trade would cause abandonment of the entire
Code, with resulting unemployment, decrease in wages
and distress to proprietors; be it

FruTiiKK RKsoLVF.n, that a copy of these resolutions
be transmitted to the l*resident of the United States
and the Administrator for Industrial Recovery, Gen-
eral Hugh S. Johnson.

Whereas, there are a])])roximately r)()0,U()U retail
tobacco outlets in the United States, the great majority

Stocks of Leaf Tobacco in U. S.

TOClvS of loaf tobacco in Uie Uiiitod Slates
owned by dealers and niannfactnreis amonnted
to 2,21)4*245,000 i)ounds on Jnly 1, VSM, com-
pared \vith2,01M),0:i7,0(K) pounds on July 1,11)33,
an increase of 105,208,000 pounds. From April 1, l!)34,
to July 1, 11)34, total slocks decreased 2:U),701),000
pounds*, while during the same ])eriod of 1933 the de-
crease amounted to only 178,867,000 pounds.

Stocks of Hue-cured tobacco on iiand July 1, 11)34,
w^ere 652,057,000 ])ounds compared with 578,157,000
pounds on Julv 1, 11)33, an increase of 73,1)00,000 i)ounds
over the holdniirs of a vear ai^o. During the period
from April 1 to July 1 of 11)34 Hue-cured stocks de-
creased 133,150,000 pounds compared with a deciease
of 102,123,000 pounds during the same i>eriod of 11)33.
Type 11 stocks cm Julv 1, 11)34, were reported as 290,-
641,000 pounds; Tvpe 12 as 216,576,000 pounds; Type
13 as 105,382,000 pounds; and Type 14 as 39,458,000
pounds. The detailed report by groups of grades
shows the bulk of the stocks of Hue-cured tobacco m
the X group with the exception of Type 14, which shows
a little larger proportion in the C group.

Stocks of fire-cured tobacco were reported as 208,-
422,000 pounds on July 1, 1934, compared with 233,487,-
000 pounds on July 1, 1933. Total fire-cured stocks
were about twenty-five million pounds lower than they
were a year ago* July 1, and about eighteen niillion
pounds lower than they were on April 1 of this year.
Virginia Fire-cured, Type 21, stocks reported as 32,-
230,000 pounds, were about three-(piarters of a million

l)ounds higher than a year ago. Type 22, reported as
128,280,000 pounds, showed a decrease of about twenty
million pounds under the previous July stocks, and
Tvpe 23 stocks reported as 43,816,000 pounds \yere a
little over four million pounds lower. Stocks of Hen-
derson Stenuning, Type 24, were reported as 4,096,000
pounds on July 1, il)34; about a million and a half
pounds lower than a year ago.

Burlev stocks were about eighty-six million pounds
liigher on* Julv 1, 1934, than they were July 1, 1933.
The Julv 1, 1934, report shows 763,770,000 pounds on
hand, the decrease during the second (piarter of 65,-
823,000 pounds was slightly lower than the decrease
during the same period of 1933. Maryland tobacco,
l\vpe 32, stocks reported as 29,589,000 pounds on July
1,' were about a million pounds higher than the pre-
vious year's holdings.

One-Sucker stocks on July 1, 1934, amounted to
:>5,700,000 pounds, or about five and a half million
pcmnds less than April 1, 1934, stocks and about a mil-
lion pounds less than July 1, 1933, stocks. (Ireen River
stocks reported as 34,782,000 pounds were about six
and three-(pnirters million pounds lower than a year
ago. Virginia Sun-cured stocks totaled 2,495,000
jmunds on July 1, or 733,000 pounds less than July I,
1933, stocks. '.Miscellaneous Domestic stocks were re-
ported as 1,995,000 ]>ounds, and foreign grown other
than cigar leaf, which is principally the Turkish type
cigarette tobacco, was reported as 77,810,000 pounds on
July 1, 1934.

CIGAR LEAF TOBACCO STOCKS

Stocks of American-grown cigar filler types
amounted to 174,420,000 pounds on July 1, 1934, com-
pared with 177,417,000 fjounds on July 1, 1933, a de-
crease of about three million i)ounds. Tyi)e 41, Tenn-
svlvania Seedleaf stocks on July 1, 1934, w<'re 1)7,079,-
(m pounds; Tvpe 42, (Jebhardt, 22,555,000 pounds;
Tvjie 43, Zinnner, 26,617,000 p<.unds; Type 44, Dutch,
7,551,000 pounds; Type 45, Georgia and Florida Sun-
trrown, 1,135,000 pounds; and Type 46, Porto IJican,
T9,483,0(JO i)ounds. The detailed report by groups of
grades shows about 74 per cent, of the total tiller typo
stocks in the C group as strictly filler grath's and aboui
24 per cent, in the X grouj) as stenuning giades.

An increase in the cigar binder type stocks from
April to Julv is normal but the increase in 1934 was
nmch less th'an in either 1933 or 1932. Cigar Hinder
tvpr stocks totaled 2(K),lOl,000 jHmnds <»n July 1,
1934, a little over eight million jiounds h>w<T than
the 'julv 1, 1933, stocks. Tyi>e 51, (NiniU'cticut
Broadk'flf stocks were 31),104,(MM) pounds on Ju]y
1, 1934; Tyi)e 52, Connecticut Havana Seed, 36,187,-

000 pounds; Tvpe 53, New York and Pennsyl-
vania Havana Seed, 3,072,000 pounds; Type 54, South-
ern Wisconsin, 75,660,000 pounds; Type 55, Northern
Wisconsin, 46,078,000 pounds. The detailed report by
groups of irrades shows that of the total binder type
stocks reported, 4,324,000 i)ounds, or 2.1 per cent., are
of wrapper (pnilitv; 74,392,000 pounds, or 37.1 jjer cent.,
are bintlers; 10,274,000 pounds, or 5.1 per cent., are
lillers; and 110,853,(H)0 jKJunds, or 55.4 per cent., are
stenuning grade or X group tobacco.

Shade-grown wrapper type stocks were nearly two
million pounds lower on July 1, 1934, than on July 1,
1933, and a littk' over a million pounds lower than
on April 1 of this year. The July 1 report shows a
total of 12,597,000 pounds on hand, 9,571,000 pounds of
Tv}K' 61, (Connecticut Shade, and 3,026,(M)0 jmunds of
T\ j)e 62, (leorgia and Florida Shade. Of the total
shade stocks reported, 8,77(),(KM) pounds are reportetl
in the A grouj) as being of actual wrapper ijuality.

Foreign-grown cigar leaf tobacco stocks were re-
ported as 10,507,0(K) pounds on July 1, 19.34.

Wholesale Code Budget

NRA approval has been asked for a proposed
budget of expenses of administering the wholesale to-
bacco trade code. The budget covers the ])eriod June
9, 1934, to June 15, 1935, and totals $410,150. Deputy
Administrator Irwin S. Moise has announced that com-
ments on the proposed budget must reach him in Room
1123, Investment Building, Washington, D. (\, before
September 13.

Members of the trade will be assessed at the rate

8

of one-tenth of one per cent, on gross sales of cigars
and one-twentieth of one per cent, on sales of ciga-
rettes, tobacco and plug tobacco.

The budget calls for salaries and traveling ex-
penses of $85,(HM); oflice expenses amounting to $30,-
500; $125,(KK) for 125 local Code Authorities; $109,650
for 51 regional Code Authorities; and $60,0(X) for legal
fees, accounting fees and reserve for the National To-
bacco Council, Inc.

Th* Tobacco World

FROM LONG KEY TO NOVA SCOTIA, the famous sportsman and writer, REX BEACH,
has matched his skill and vitality against the big game fish of the Atlantic! Below he tells how
he lights a Camel after fighting it out with a heavy fish — and soon '^ feels as good as new."

REX BEACH EXPLAINS

how to get back vim and energy when '' Played Out"

"Any sportsman who matches his
staminaagainstthe fighting strength
of a big game fish/' says Rex Beach,
"has to put out a tremendous
amount of energy before he lands his
fish. When I've gotten a big fellow
safely landed my next move is to
light a Camel, and I feel as good
as new. A Camel quickly gives me

a sense of well-being and renewed
energy. As a steady smoker, 1 have
also learned that Camels do not
interfere with healthy nerves."

Thousands of smokers will rec-
ognize from their own experience
what Mr. Beach means when he
says that he lights a Camel when
tired and "feels as good as new."

And science adds confirmation of
this refreshing "energizing effect."
That's why you hear people say
so often: "Get a lift with a Camel."
Camels aren't flat or "sweetish."
Their flavor never disappoints.
Smoke Camels steadily — their finer,
MORE EXPENSIVE TOBACCOS do
not get on the nerves!

CuB«ls arc made from finer. MORE EXPENSIVE TOBACCOS
— Tarkish and Domestic — than any othor popvUu brand.

CAMELS

Costlier

Tobaccos
never get on

your Nerves

vj^^-^

44

'^j

Gei a Llfl
with a Cam

ell

^9

'^.

^A

Copyright, 1931. B. J. Reynoliii Tobacco Companj

September i$, i<ji4

Oppose Maximum Tax on Burley

OBACC'O niaiuit'acturors asked the Ai2:riciil-
tiinil Adjustinoiit Aaininislration at a lioariiiK
y on Sei)teinbor 5 not to levy the maxinunn pvoe-
osshi"- tax of ().l cents a ])onna on Burh'v to-
bacco nsed inlhe manufacture of phi- chewhi- tol)acco
and twist on the ^rounds that the niaximuni rate would
result in a reduction of consunii)tion of chewing- to-
bacco i)roducts made in whole or in ])art from Burley
and a consequent accumulation of sur])lus. ^

The processinu- tax on Burley tobacco, hxed m l)c-
tol)er, 1933, is now two cents a imund. Since the tax
was levied, however, the ditTerence lietween tlie cur-
rent averaue farm price of Burley and the tair ex-
change value of the commodity has increased so that it
would now be possible to levy a maximum processmg
tax of 6.1 cents a pound on Burley.

The hearins--, jiresided over ])y J. L. 1 eirce and
Robert B Tvler, of the Airricultural Adjustment Ad-
ministration,* was called to determine that if the max-
imum tax of 6.1 cents is levied would this rate be too
hi-h on Burlev used in the manufacture oi p us: chew-
injj- tobacco and twist, and if too high what should the

maximum rate be. . , t • .^ i Ar .

AVhile AV. W. Flowers ot the T.iggott and Myeis
Tobacco (\)mpanv, and M. A. Braswell of the R. J.
Revnolds Tol)acco (V>m])any, were the only witnesses
to testify at the hearing, both op])osed levying of he
full tax* on Burlev used in the manufacture ot i)lug
chewiim- tobacco and twist. Each said he was not m
a ])osition to suggest a definite rate. Botli, however,
asked that the rate be as 'Mow as possible."

Mr. Braswell read from a brief tiled by Harry
Tavlor rei)resenting chewing to))acco manufacturers,
at *a hearing held May 24, 1934, in which Mr. Taylor
urged a uniform i)rocessing tax on all tobacco leal,
regardless of tvi)e, going into the manufacture of ])lug
ch'cwiim- tobacco and twist and suggested a rate of
VA cents a pound f{irmers' sales weight. Mr. Bras-
well said he did not necessarily concur in this rate
su«»i>estion but merely wished to call it to the attention

of the hearing. , , . ^ ^

Mr. Braswell and Air. Flowers l)oth said, however,
that thev believed a uniform tax rate on all leaf to-
l)acco, regardless of tyi)e, used in the manufacture of
i)lug chewing tobacco and twist would be an aid to the
industrv and the Agricultural Adjustment Admin-
istratio'n. Thev argued this would tend to eliminate
manufacturers'* shifting from one tyi)e of tobacco to
another in the manufacture of their i)roducts and pos-
siblv would help to increase the use of tobacco m chew-
ing forms.

Mr. Flowers said his company feels "rcasoTiably
sure" that a tax of 6.1 cents a iMumd on tobacco used
in chewing ])ro(lucts would result in a <lccrease in con-
sumi)tion and therefore would tend to build up a sur-

])lus.

Mr. Braswell said the i)rocessing tax on tluc-cured
tobacco had forced his company to decrease the size of
the retail unit of its chewing ])roducts uuidv from Hue-
cured tobacco with the result that there had been a
decrease in consumption of tiue-curud guiiig into chew-
ing products.

Tobacco Exchange Board Announced

HF personnel of the Board of Governors of the
New York Tobacco Exchange, Inc., the con-
tract basis and official delivery ])oints were
announced yesterday afternoon (Wednesday)
bv the Exchan-e. the governors will meet late today
(thursdav) at which time it is expected that the date
for opening will be announced. The Board ot Gover-
nors as at ])resent constituted comprises: John \\ .
Hanes of ('has. I). Barney & (^o., i)resident ot the hx
change; John L. Julian of Fenner & Beane hrst vic-i-
president ; Louis P. Christenson, vice-president cjf the

Manufacturers Trust Company; Jl^f^J'^lW^ ', u
J. S. Bache & Co.; John R. CoHms wdh Hubljard Bros.
& Co.: Howard i\ llirsch, of Hirsch, Lillienhal k ( o ;
Bernard Gelles, with W. R. (Jrace c^ (V».; Edward A.
Brown, secretarv; Harry B. Brockhurst, treasurer;
and Paul G. L. Hilken, assistant secretary.

The Exchange has determined upon United States
Standard tlue-cured Type 12 (Jrade B4F as the basic

contract. This grade was selecttnl Viecause B4F is one
of the largest grades in volume during a normal year.
The records of the Fnited States l)ei)artment of Agri-
culture show that the Department last season graded
19,880 lots or 2,486,049 ]K)un<ls in B4F.

The decision in favor of Type 12 (Jra<le B4F which
is thebriirht leaf tobacco, will mean that the opening ()t
trading on the Exchanire will coincide with tlu' openinir
of the seascni and that trading in futures will run ])arah
lei with spot transactions, thus furnishing a basis of
comparison.

Other grades and tvpes will be acce])table as ])er-
missible deliveries under definite <litTerential si»ecili-
cations. The unit of trading will be UMMMI pounds
„r approximatelv It) hogsheads. Two delivery points
have been api)roved: Norfolk ami or Xewi>ort News,
Va., and Eouisville, Ky. Serious consideration is be-
iiiLC given to an additicmal delivery point m North
Cju-onna, the bright leaf district.

Warehouse Code Budget

A proposed budget of code expenses of the auc-
tion and loose leaf tobacco warehouse industry has
been submitted for NRA approval. Deputy Admin-
istrator C. W. Dunning has announced that comments
on the proposal must reach his office, 1127 Investment
Building, Washington, before September 18.

The budget totals $:5r),100 for the year eiulmg
June 29, 1935. The largest item is $ir),8IK) for salaries
and traveling expenses of six field supervisors.

it is proposed to raise the money l)y assessing tour
cents per thousand pounds of tobacco sold on ware-
house floor.

Tht Tobacco World

ff

real is
iohficco ... a shrub
rooted in content'
ment — manna of
the West.''

-ANTHONY ADVERSE

Right as rain
. . . and I'd say
the only man
who Joesnt hke

ranger is
man who never

tried it !

95

-FROM
A PIPE SMOKER

::i^'

j0rr^

. tJ

'^^ 07^

'^O

ic |>i|>c lobiicco lIvaTs MILD
llic pipe lohacco llial's (U)()li

/>//'.v scc/N fo /fur //

0 19M. tjocmr ft Myi«s To»Aa» Co..

September is, I934

n

10

Results of New Cuban Agreement

LOSE to a million acres of farm land will be
nocHlod to produce the increased agricultural
exports to Cuba if the new trade agreement
between Cuba and the I'nited States works
out as expected, it has been estimated by Secretary
of Agriculture Henry A. AVallace. After citing the
figures on the exports' of various commodities on which
lie based his estimate, Secretary Wallace added: ** Nat-
urally, Cuba could not aiford to make these conces-
sions to the Ignited States unless the United States
made some concessions to Cuba. This is the essence
of the tariff reciprocity program. Accordingly, the
United States agreed to lower tariffs on the two most
im]iortant products, sugar and tobacco. . . .

'*Tlie duty a])plicable to Cuba on filler tobacco for
cigars was reduced 37^2 per cent., or from 28 cents
per pound to ITV-j cents for unstemmed and from 40
cents to 25 cents for stemmed. This is the class of to-
bacco in which Cuba is principally interested. Reduc-
tions were also made in the duties applicable to Cuba

on wrapper tobacco and cigars. At the same time,
however, a provision was made for a quota on Cu])an
tobacco ecpiivalent to 18 per cent, of the tobacco enter-
ing into the manufacture of cigars in the United States
in the preceding calendar year. This figure represents
the proportion of Cuban tobacco used in cigars in this
country during the last ten years. The object of this
provision is to protect the growers of cigar leaf to-
bacco in the United States from disastrous competi-
tion from Cuban tobacco at a time wiien they are en-
tering into agreements to curtail their own acreage
and production.

**In establishing these quotas on sugar and to-
bacco a principle has been recognized which will be
followed in connection with the general tariff bargain-
ing program. This is the recognition of the necessity
for establishing quantitative limitations on the impor-
tation of products which are similar to and compete
directly with American products the production of
which is being restricted or curtailed.''

"Baby Grand", New Cigarette Roller

HE "Baby Grand'' is being introduced as a
practical compact and unique cigarette
roller. The compact size of this roller
{'3xlV8X% inches) and its complete weight
of only three-quarters of an ounce, is an ideal
size and weight to be carried in the vest pocket or
ladies' pocket-book. It has a highly finished and ex-
tremely attractive case and can be had in any color.
The case is made to snap open or remain closed without
the aid of any spring or metal device. After making
one cigarette, the roller is ready to make another, with-
out rewinding, by simply reversing the position of the
roller.

There is a ''Tension Control" which regulates the
density of the packing of the tobacco of the cigarette in
process. It is said that even the finest flake or granu-
lated tobacco can be made into a perfectly rolled, prop-

erly compressed, and full at the ends, cigarette; that,
in fact, even snufT could be made into a cigarette.

Another feature claimed for the ''Baby Grand"
is that a perfect cigarette is made irrespective of how
much tobacco is placed in the roller. Whether too
little or too much, it merely determines the diameter
of the cigarette, so that a perfect cigarette can be
made of any desired size that your fancy dictates, from
a match-stick to a cigar thickness.

Either plain or gummed cigarette jiaper can be
used.

The directions inside of the roller show how cigar-
ettes with tips and also medicated cigarettes can b"
made with this roller.

The Caldwin Baby Grand Roller is made by the
E. C. Machine Works, Inc., manufacturers of special-
ties, Garfield, N. J.

Regulations on Posting Labor Provisions

KQUIREMENTS more detailed than heretofore
for the lasting of labor provisions of codes of
fair competition were announced today by the
National Recover^' Administration. The new
requirements are that, in addition to labor provisions
which employers heretofore had to post, they now must
post also orders, interpretations, explanations or state-
ments issued by the President or the Administrator as
part of or in connection . . . with such code provisions.
This new order leaves unchanged all provisions of
Order X-7, except Paragraph 1. That new paragraph
reads in full as follows :

** Every person shall, in the manner hereinafter
provided, make application for and display oflBcial
copies of labor provisions for each Code to which he

J2

is subject or may hereafter be subject. Such official
copies of labor provisions (hereinafter referred to as
official copies) will contain (a) the provisions of the
Code relating to hours of labor, rates of pay and other
conditions of employment; such conditions. Orders,
interpretations, explanations or statements issued by
the President or the Administrator as part of or in
connection with any Order approving such Code or any
amendment thereto so far as they relate to such pro-
visions of the Code; other interpretations, Orders and
explanations; all to such extent as NRA may in the
case of each Code deem to be advisable to effectuate
the purposes of these Rules and Regulations. A sep-
arate application shall be made with respect to each
Code."

The Tobacco World

El Producto policy means

more to dealers because it
builds quality business and
quality business builds profits.
Are you getting your share?

e. H. r. CICASCO.,INC.,rHILA.,PA.

EL PRODUaO

for real enjoyment 1 r\ cents

X^^ AND UP

Decrease in American Leaf in China

HKDl (TIOX in consumption of American h'af
is expected (hiring tlie l{)o4-35 sejtson l)ecause
of tlic huge 1JKJ4 crop, tlie heavy carryover of
native h'af, heavy taxes on cigarettes, increas-
ing prices for American tol)acco, and h)w purchasing
power of the ChiiH'se consumers. Consumption of
American leaf last season is believed to have been
almost 20,(H)0,()()() ])ounds less than in the j)receding
year because of tlie large supplies of cheap native leaf
resulting from the record 1933 crop, and also because
of an increase in the tax on machine made cigarettes
ill December, 1933.

The increase in the cigarette taxes in December,
1933 decreased the consumption of American leaf since
considerable (piantities of American tobacco are used
for blendini; with native leaf in the manufacture of
the cheaper grades of cigarettes. The immediate re-
sult of the increased taxes was an economy in the use
of American leaf and a large increase in the manufac-
ture of hand-rolled eigarettes which escape the tax and
in which native leaf is used almost exclusivelv. The
consumption of hand-rolled cigarettes has now become
an important factor in the Chinese cigarette supply.

China has been endeavoring for several years to
l)e more self -sufficient in the matter of flue-cured to-
bacco and considerable (piantities of American seed
have been imported and planted. There are no indi-

Siptember 15. 1934

eati()ns as yet, however, of any improvement in the
<iuality of the native-grown leaf, says the bureau.
Higher prices for American tobacco during 1934-35 are
likely further to stimulate the consumption of native
leaf, but Chinese dealers generally realize the need for
great improvement in the quality of native leaf before
any significant permanent reduction can be made in
the recpiireinents from the United States.

Any large-scale substitution of Chinese forTAmer-
ican leaf would be of considerable significance to
American producers of Hue-cured tobacco, since China
in recent years has been the second most important
export market for our exports of that type of leaf,
having taken on the average approximately 28 per
cent, of our exports during the five years 1929-33.

China's total imports of leaf tobacco, practically
all from the United States, during the twelve months
ended Sei)t ember 30, 1934, are expected to be about
78,0(M),0(M) pounds compared with r)r),{)0(),0(K) pounds
last season. Consumption of American leaf in China
this season is <'xpected to be approximately 70,000,000
pounds compared with 90,000,000 pounds a year ago.
Because of the reduced consumption of American leaf
and the heavier imports during 1933-34, stocks of for-
eign tobacco on October 1 are expected to be some-
what larger than a year ago, although they will not be
excessive, says Dawson.

CHINA'S 1934 CROP

TIE 1934 fliio-eiirod tobacco cro]) in China is
now ostimaUHl at 142,1)00,000 pounds conipaml
with tlic revised ti-uro of 14(),000,000 pounds
for lias, and with iOeS,000,000 pounds for VXV2,
accordinu to a radiourani received by the Bureau ot
A"ricultural Economics, from A-n^'ultm-al (Vnnniis-
sioner O. L. Dawson at Shani»hai. (Carryover supplies
of imported leaf will be only moderate by the end ot
the current season, it is exinrted, but the carryover
of native leaf will i)robal)ly be approximately 2(),000,-
UOO pounds com]>ared with 8,000,000 i.ounds at the
close of the ll)o2-3o season.

Present indications ]K)int to a crop ot 7,),0(H),000
pounds comi)ared with 70,000,000 i»ounds last year in
8hantun«»-, 4r),000,000 i)ounds compared with ()0,000,000
pounds ni llonan, 20,000,000 i)()unds compared with
14,000,000 pounds in Anhwei, and 2,000,()0t) jmunds, or
the same as last vear, in Manchuria. The croj) is de-
velopin*»- favorab'lv although rainfall is somewhat ex-
cessive in Shantunji-. With exceptionally favorable
conditions till harvest, the total crop miiiht eciual or
even exceed the record 1923 croj).

CODE STAMPS ON BOXES

.K Code Authority for the cii»ar manufactur-
ing imlustry has ai)plied for X. H. A. approval
of an amendment to its c(Hle whereby all boxes
of cii»ars would be reciuired to have a Code
Authoritv stfimp, si.i^niifyinii- compliance with the code
The stami)s would be sold by the dnlv Authority, and
the proceeds used to tinance cckIc expenses. Prices
would varv, depending on the retail value of the cii,^ars.
It is estimated, in the bud.iret of code expenses sub
mitted bv the Code Authority, that $2SO,l(;o wiU be re-
quired in the period June 19, 1934, to .June 1*/, lp;^'>;
Salaries will take $92,SOO of this,oftice expenses H^4.»,010,
travelin- exjienses $3r),8r)0, le-al fees $30,000, labels
$47,500, and the National Tobacco Council contril)uti(»n
$25,000. Accountini*- is estimated at $.)(K)0, and insur-
ance at $1(K)0.

NORTH CAROLINA TOBACCO PRICES UP

OBACCO ]>rices at Farmville in the Eastern
North Carolina district, showed marked im-

CONCESSION FOR EXHIBIT

Permission has been .srratifotl the (Jeneral Cigar
(\)mpanv to allow emi)loyees at its -Centurv ot Prog-
ress^' exhibit to work 45 hours a week and on Sun-
day, although the Code for the cigar manutactunng
industrv limits em])loyees to a maximum of 40 hours
and calls f<»r a six-day week. -^ .i <

The order granting the ]>erinission specilies thai
these operators must be cdT duty a full 24 l;<>"rs every
other day, and shall be i)aid time and one-third tor all

Sundav wc^rk. .

riider the Code limitations, it was toiind impos-
sible to operate the exhibit to coincide with and in-
clude all the time of ''activity, exhibition and display"
at the great Chicago exposition.

< <

RAINBOW" LINE OF PIPES

A new and complete line of pipes, ai>tly named
*' Rainbow", has recent Iv l)een jilaced on the market
bv S. M. Frank, New York City. They are ]»reimred
from cast Bakelite Resinoid in a wide variety ot bril-
liant colors which should strike the fancy of all i)ip<'
lovers. The ])iiK's are mounted on a handsomely de-
signed display card printed in restrained colors to
bring out the beauty of the piix's.

14

provement over those of the i)revious season,
according to otlicial reports of opening |<ftkjs.
The Tobacco Section of the Bureau of Agricyturfjl
Kconomics, co-operating ^vith the North (^aroliha^i-
vision of Markets, in official tobacco grading service at
Farmville, reports that the sales consisted mostly of
lugs and primings, with a small percentage of third
and fourth (juality cutters.

Such cutters as appeared on the market and wer.^
officiallv graded averaged $(;.33 more than last year's
average, or an increase of 21 per cent. The average
for lugs was up $9.45 or 52 per cent., and primings
averaged $10.90 more, showing an imrovement ot iH

i)er cent.

The average prices on specific grades and the in
ereaseover last'^vear's season averagr's follow: (hitters,
('3F_$36.70, up $3.()0; C4F— $35.10, up $7.10. Lugs:
XlL-$34.70, up $11.30; X2L-$29.()0, up ^-^^^^^
$24.30, up $8.80. Primings: PIL— $33.10, up $12.9 ;
P2L-$30.30, up $13.70; l>3L-$24.20, up $11.40;

P4L— 19.20, up $10.30. . i> 1 • 1 ;ii

The tobacco market news office m haleigii w i
issue dailv and weekly reports on prices of Type IL
tobacco according to grade, commencing August J/th.
B(^<'inning September 11th, this office will also report
(Uil^liddle Belt t(»l>acco, Tyi>e 11 (b), and grading serv-
ice will be made available to growers at Oxtord drad-
iu- of Old Belt tobacco. Type 11 (a), at South Boston,
Va., will make it possible to supply grade prices on
that type beginning September 25th, trmn an office to
be established in Virginia.

EXEMPTIONS FROM CODES
**1 Provisions of the P. R. A. ani. ok AiM'itovKD

Col.KS FROM Wmni FmI'LOVKHS iNCLlUKn I NnKU THE
ExKCrTlVK OUDKK AhK KXKMI'TKO.

'* \n em])lover exemi»ted by the Kxecutive Order
of May 15, 1934, is not re<iuired to comply with para-
graphs 2, 3, 4, 5 and (i of the President \sKe-emplo>-
ment Agreement or of aiM^oved substitutions tor the
requirements thereof, lie is under ol)ligation to com-
plv with the remaining jiaragraphs.

* - \n emi)lover exempted l)y said Kxecutive Onler
is not required'to comply with the iirovisnms ot a|>-
proved codes which prescribe maximum hours ot em
plovment, hours of store oi»eration, and minimum rates
nf pav, or which re<iuire the posting (»f such jirovisions
<»r wliich relate to the minimum price at winch the eni-
pl(»ver mav sell merchandise or render a service, or
which call'tor assessments to the Code Authority tor
the purpose of meeting its exiienses.

-Such an employer is bound by the remainder ot
the Code including (but without limitation) the Cluld
Labor Pn.visions and the Fair Trade Practice 1 ro
visions except those which relate to the minimum
jnice.

Philiii Morris .Jc Co., Ltd., Ins., Xew York, manu-
facturers of Philip Morris and Marlboro cigaretto,
have become members of the Association of Xational
Advertisers, Inc. Mr.NI. J. Sheridan will represent tlu"
comimny in the association.

Tkt Tobacco World

EXPORT BUSINESS UP

XPORT volume of finished tobacco products,
especially cigars and smoking tobacco, im-
proved considerably during the first six months
of 1934 as compared with the same period of
1933. In the 1934 i)eriod, 23,604,000 cigars; 18,588,000
cigarettes and 113,()11 pounds of smoking tobacco were
exported, the increase being: cigars, 42 per cent.; ciga-
rettes, 23 per cent., and smoking tobacco, 117 per cent.
In value, the United States purchased 4.98 per cent, of
the ex])orts of finished tobacco products during the first
six months of 1933, and 4.62 per cent, during the same
period of 1934.

Principal countries showing increases in cigars
were: Argentina, Canada, the United States, Germany,
Spain, Gi])raltar, the United Kingdom, British Africa,
Canary Islands, and Australia. Exports of cigars were
made to seven countries not ])articipating during the
1933 period, among w^hich were Czechoslovakia,
Sweden, French Africa, and New Zealand.

At one time Argentina and C'anada were important
markets for Cuban cigars, but in recent years exports
have declined. However, in the first six months of 1934
shiimients to Argentina and Canada showed a slight
increase.

Total return to Cuban shippers of leaf tobacco and

exported, but in leaf tobacco, although the volume de-
creased apinoximately 21 per cent., there was an in-
crease in value.

Total increase in returns for all tobaccos exported
amounted to 85:',322 i)esos, of which the increase in
value of cigars was 715,182 pesos, cigarettes 2821 pesos,
smoking tobacco 30,03!) pesos, and leaf tobacco 111,280
pesos.

WAREHOUSE CODE AUTHORITY

Official recognition has been given the Code Au-
thoritv for the auction and loose leaf tobacco indus-
try, it was announced on September 7th by the Na-
tional Recovery Administration.

Members of the group are as follo%vs:

C. O. Dixon, Mullins, South Carolina, represent-
ing the South Carolina Belt Wareliouse Association.

^y. E. Fenner, Rocky Mount, North (^arolina, rep-
resenting the East Carolina Belt Warehouse Associa-
tion.

W. J. Alston, Henderson, North Carolina, repre-
senting the Middle Belt Warehouse Association.

C. B. Strickland, Winston-Salem, North Carolina,
representing the Old Belt Warehouse Association.

R. E. Cooi)er, Hoi)kinsville, Kentucky, represent-
ing the Dark Fired and Unfired Warehouse Associa-
tion.

John L. Buckley, Lexington, Kentucky, represent-
ing the Kentuckv Burley Warehouse Association.

J. II. Dean* Knoxville, Tennessee, representing
the Tennessee Burlev Warehouse Association.

J. Mott Robertson, Lynchburg, Virginia, repre-
senting the Virginia Dark Warehouse Association.

G. H. Stevens, Huntington, West Virginia, repre-
senting the West Virginia and Ohio Warehouse Asso-

eiation.

E. W. Brown, Nashville, Georgia, representing

the Georgia Belt Warehouse Association.
September 13, 1934

WALTER O'KEEFE CAMEL M. 0.

NEW all-star Camel Caravan, featuring Wal-
ter O'Keefe as master-of -ceremonies with
Annette Hanshaw, popular songstress; Ted
Husing, ace sports commentator, and Glen
Gray's Casa Loma Orchestra, will start a series of
two half -hour programs a week over the AV ABC-Co-
lumbia network, Tuesday, October 2d. Sponsored by
the R. J. Reynolds Company, makers of Camel cigar-
ettes, the Caravan will be heard every Tuesday from
10 to 10 :30 P. M. E. S. T., and each Thursday from 3
to 9:30 P. M., E. S. T. There will be a re-broadcast
for western stations from 11 :30 to 12 midnight, E. S. T.
The program will be broadcast over eighty CBS sta-
tions.

Marshalled by the witty and entertaining O'Keefe,
versatile star of radio, stage and screen, the Caravan
will be an elaborate musical and humorous revue. The
Casa Loma Orchestra, starred on last year's Caravan,
returns in the new series after a successful summer
at Glen Island Casino, with a host of novelty num-
bers and special arrangements by Gene Gifford. An-
nette Hanshaw, diminutive personality songstress, will
feature song hits of the day with the orchestra, and
Pee Wee Hunt and Kenny Sargent will also be **on
deck" with vocal interludes. ^liss Hanshaw is a phe-
nomenal ** natural" in the music w^orld, never having
studied music and learning all her songs by ear. She
was ''discovered" by a phonograph company's repre-
sentative and her records have sold in the millions.

Ted Husing will present a dramatized commer-
cial sketch on each Tuesday program. He will alter-
nate with a well-known news w^riter, who will handle
this assignment on the Thursday programs. Husing
has had a colorful career as news announcer, actor,
soldier, hitch-hiker, policeman and aviator. He joined
Columbia's staff on Christmas Day, 1927, and has
starred in outstanding broadcast events of all kinds.

Walter O'Keefe has had a remarkably diversified
career. A brilliant humorist and commentator, he
sings his own songs as well as the songs of others,
writes most of his own material, and is a deft satirist
and impersonator of celebrities and notables. O'Keefe
has been press agent, night club entertainer, composer
and real estate salesman. He worked with Texas
Guinan, sang in Greenwich Village night clubs, and
finally co-starred on Broadway for eight months in
**The' Third Little Show" with Beatrice Lillie and
Ernest Truex. Last season he re-discovered ''The
Maw on the Flying Trapeze" and made it one of the
best selling songs of the year.

WHOLESALE WAGE PROVISIONS CORRECTED

By amendment, the XRA has completed the mini-
mum wage schedule contem])lated under the code for
the wholesale tobacco trade. The amendment calls for
a 20 per cent, increase in the rate effective on June 1,
19.33, for all em]iloyees in towns under 25,000 popula-
tion, provided the increase does not require payment
of moie than $11.50 a week. It further provides that
no employee in such towns shall receive less than $11

a week.

This provision was inadvertently omitted in the
final draft of the code, although it had appeared in
earlier (Irafts and was proposed and assented to by
the trade.

t$

Hiiiii -mm'

News From Congress

FE D E R A L

Departments

OKTALITY in the cigar maimfactnrinu: indns-
trv (luiiiii*- the doi)rossioii reduced the iiuiuber
of i)lants hy o!).2 per cent., cut the averai»e
of eniploynieiit hy 21.3 per cent, and, with
other factors inherent to the ])revailin.u- conditions,
reduced the vahie of |)roduction hy oD.O })er cent., it is
disch^sed l)v liuures just eonn)iled bv the United States
Census Bureau.

The number of establishments in flie industrr, fhe
bureau reported, (h-oj)])e(l from 10(».'> in I'KSl to i)M\ hist
year, tlie averaiic number of wame earners declined
i'rom (38,182 to ."30,(184 and total wane ]>ayments were
reduced :i").8 ]ier cent, from $4(;,( •74,01 M to :r2!),r)r)7,rHJ).
Employment increased from March to Sei)tember,
1933, the bureau found, but then declined and at the
end of the vear was back nearly to the level of June.

The value of eii»ar ])roduction deelmed 39.8 ])er
cent, duiinj;- the ])eri(>d, it was found, from Jr22r),149,342
to $13."3,57(5,475, while the value of other i»roduction
dropped 23.3 ]>er cent., froni $2,1!)!),4IH) to $1,(;87,847.
The cost of materials, containers, fuel and ]>urchased
electric eneruv dropped 40 per cent., from $1 1}»,2U.J,138
to .$71,485,301.

Cj3 Cj3 Ct3

ROTKOTIOX of the Bel-ian market for Ameri-
can leaf tobacco will be souiiht by the State I)e-
l)artment durinir ne.u:otiations just undertaken
for reciprocal trade a.m:rei'm"nt with Belgium,
it is indicated by trade statistics made public upon an-
nouncement that a new treaty would be sought.

Due to ])rice decline, it was shown, the value of
our leaf tobacco exports to Belirium has remained static
since 1921) althomrh the volume has increased over 50
per cent. Shijiments in 1933, it was stated, were 21).-
S(;7,0(!3 ]K)unds valued at $l,7oo,:j87 airainsi i;s752,43^)
liounds valued at >^l.f;71,4(;i in 1929.

Ct3 Ct] Ct3

()V1X(J to prevent the use of ciu:arettes as

*'l)ait" thr<Miu:h absoi'ption by deah'rs f»f state

taxes, the Xational He<-oveiy A<lminist ration

on Septeml)er loth ordered that the amount

of any state tax must l>e added to tlie minimum i)ric"

established under the retail tobacco tra(h« code, etTect-

ive Sei)tember 17th.

The rulini^^ applies to all sales in a state levyinu:
such a tax, rei^ardless of wii<'ther the sellei- is actuallv
located within the state. As a result, the incentive to
])urchase ci,irar<'ttes outside of taxinir stat<'s, by mail, is
removed and all dealers are placed on an e«|ual footinir.

16

From our Washington Bureau 622Alb£e BufLDtNC

A KING what may be the opening move in a
general attack upon the XKA, the shoe manu-
facturing' industry, throui^h its trade a.-5socia-
tion and code authority, this month recom-
mended to President Hoosevelt the skeletonizinu: of all
codes throutih the elimination of all ])rovisions other
than those dealing- with labor.

Although representatives of many industries have
coni])lained that the trade practice i)rovisions were
slowinj; up business and were, in ueneral, undesirable,
the shoe trade was the first to direct a concrete attack
upon this endeavor, which the Administration has
])rided itself U])on as a valuable contribution to the
ethical elevation of industrv.

While officials of the NKA refused to conuiicnt
on the shoe trade's move, fears were informally es-
l)ressed that it may l)e the siunal for a flo(;d of similar
reconnnendations from other industries which nuiy
force the Administration to take action, lliirh Govern-
ment officials, however, are disturbed because of other
considerations, seeinu: in any concerted demand lor
skeletonization of codes a repudiation by business of
President Roosevelt's drive for ureater industrial
morality, givinii: critics of the Administration ammu-
nition for ])olitical attack durini? the con«j:ressional
camjmiirns.

If agitation airainst the trade ])ractice ])rov!sions
becomes sufficiently pressinir, the President may deem
it desirabh' not to ask for continuation n\' thos(» sec-
tions of the Industrial Recovery A<'t which provide for
such clauses. The act automatically expires June lf>,
next, but extension has been ])lanned, ])robably for
another vear.

Cj3 Cj3 CS3
DMIXISTRATTOX of the wholesale tobacco
code will cost $410,150 for the ])erio«l from
June 9, 1934, to June 15, 1935, accordini^ to
a budv:et filed with the Xational Recovery Ad-
ministration bv the code authoritv. The funds will be
raised bv assessments upon members of the trade at
the rate of one-tenth of one ])er cent, on ^ross sales
of ciirars and one-twentieth of one ]M'r cent, on sales
of cii^arj'ttes, tobacco and pluu: tobacco.

The Administration has ruled that wholesale to-
bacco establishments may lemain ojjen on Sunday pro-
vided they are closed on some other day of the week
which constitutes the Sabbath of the wholesah'r, as a
result of representations that many orthodox Jews in
the trade operate in Jewish neiuhborhoods and <ater
to Jewish trade and, in order to conform with the code
provisions as originally written and at the same time
obey the mandates of their faith, have been obliged to
remain closed two days each week.

The Tobacco World

CUBA'S BEST CUSTOMER

rUIXG the first six months of 1934, as in other

years, the United States registered as the best

customer for Cuba leaf tobacco taking fi4.4

per cent, in volume and approximately i<0 per

cent, in value of all leaf tobacco exported from Cuba

during the period under review.

American Conunercial Attache Walter J. Don-
nelly, reporting to the Tobacco Division, Department
of Connnerce, states tluit eximrts of Cuban leaf tobacco
to the United States during the first six months of
1934 totaled (i,l89,073 pounds, valued at 3,598,fJ53 pesos
compared with 5,530,330 pounds valued at 3,384,379
pesos during the like period of 1933. In the 1933
period the United States took 47.4 per cent, in volume
and approximately 77.12 per cent, in value of all leaf
tobacco exi>orted during the period.

Argentina registered second in Cuban exports of
leaf with 874,975 i>()unds, followed by Canary Islands
with b4(),311 pounds and Sweden with 578,513 ijounds,
compared with the 1933 period, exi)orts of leaf to Ar-
gentina declined slightly in volume but increased in
value.

Kxports of leaf to the Xetherlands declined from
1,1!)4,J)39 pounds to lfj(),570 pounds, (Jermany from
902^572 pounds to 233,431 pounds, and Spain from
1,()75,(H)1 pounds to 12(5 pounds. The decrejise thai
exists in the case of Spain is due to the fact that ship-
ments of leaf tobacco to lUut country have been de-
layed.

Europen participation in Cuba's exports of leaf
tobacco declined in value from 9.9 per cent, during the
first six months of 1933 to 7.18 per cent, in 1934. De-
clines were registered by (icrmany, Denmark, Spain,
Australia, (iibraltar and Xetherlands. Increases were
registered by Belgium, Xorway, l*ortugal and United
Kingdom.

In addition declines were registered l)y C^hile, Pan-
ama, Paraguay, I*eru, Puerto Rico, Portuguese Africa
and Japan, and increases by Cana(hi, Uruguay, French
Africa, British Africa, Azores, Canary Islands and
Madeira Islands.

Total volume of leaf tobacco shipped from Cuba
to all countries <luring the first six months of 193.3,
amounted to ll,bOli,407 pounds, valued at ^^4,388,115,
compared with 9,()13,15() pounds, valued at $4,4!)9,400
during the like period of 19.14. The decline in volume
amounted to 17.(5 i)er cent, and the increase in value
amounted to 2.5 per cent.

Disj)arities that exist in comparing the value and
volume of leaf tobacco during the two i>eriotls are ex-
plained by the large cpuintity of fine leaf tobacco ex-
ported to the Unite<l States, and the decreas(» in sales
of low quality tobacco to the Xetherlands and to (icr-
many.

I*. Lorillard Company has a display crew working
in this territory nuiking their heachjuarters Yahn •!'
McDonnell, local distributors of Briggs smoking to-
bacco. The crew is busy supplying dealers throughout
this territory with Briggs tobacco displays and stock
of this popular i)ip<* tobacco in prej)aration for a new
radio campaign on this brand to begin early in October.

Brigns tobacco was first intnxluced in Phihulel-
l>hia by the P. Lorillard Co., as an exjK'riment, and the
inuuediale and enthusiastic welcome it i-eceiv<'d from
pipe smokers in this city indicated that tin* Lorillard
Company had discovered a *' winner". Briggs is now
distributed from coast to coast.

September 15, 1934

wr

rLILLIAN RUSSELL

CIGARS

CIGARS

P. LORILLARD GO'S

Quality

2 f^r 5^

Cigars

Meeting the public's demand
for quality cigars
moderately priced

NEW

CURRENCY

CIGARS

2

for
5c

Our Other Popular 2 for 5^ Cigars
JAMES G. BLAINE • • POSTMASTER
LA FRAOSA • SARONA • WAR EAGLE

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCfTANTS ASSOCIATION ^^l^fff^^

OF UNITED STATES '*^^l1^^

JESSE A. BLOCK. Wheeling. W. Va President

JULUS 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

GE(JRGE H. HCMMELL. New York. N. Y Vice-President

H. II. SHELTON. Washington. D. C Vice-President

WILLIAM T. KEEl), Richmond. Va Vice-President

HAkVEY L. HIRST. Philadelphia. Pa.' Vice-President

ASA LEMLEIX. New York. N. Y Treasurer

CHARLES DLSHKIND. New York. N. Y Counsel and Managing Director

Headquarters, 541 Madison Ave., New York City

RETAIL TOBACCO DE.ALERS OF AMERICA, INC.

WILLIAM A. HOLLINGSWORTH, 233 Broadway New York, N. Y President

CLIFFORD N. DAWSON. Buffalo. N. Y Executive Vice-President

JAMES C. THOMPSON. Chicago. Ill Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

TOHN H. DUYS. N"ew York City President

MILTON KANCK, I^ncaster, 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

ABE BROWN. 180 Grumman Ave., Newark. N. J President

ALBERT FREEMAN, New York, N. Y First Vice-President

IRVEN M. MOSS, Trenton, N. J Second Vice-President

A. STERNBERG, Newark, N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE President

SAMUEL MAGID. 2(J01 N. Mervine St.. Philadelphia. Pa Secretary

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS. INC.

E. ASBURY DAVIS. Baltimore, M.l President

JOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y Secretary

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN President

HERMAN H. YAFFE, 301 Fox Building, Philadelphia, Pa Sccretarj

f I

OCTOBER 1, 1934

Establiihed 1886

"BEST OF THE BEST

99

M,-uctur>d b. ^ SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West. Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS ^ .u . u -^

Make tobacco mellow and smooth In charaot«r
and Impart a most palatable flavor

FUVORS FOR SMOKING and CHEWING TOBACW

IVritA for List of Flavors for Special Brands

FRIES A BRO.. 92 Reade Street. New York

!M&m^^MMS2S21

Classified Column

The rate foi this column it three cenu (3c.) ft word, wWi
a minimum charge of aeventy-five cenU (75c.) payabU
strictly in advance.

^«viKir)»ir?»ir/*\"'Svir/»Mri

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while Ime,
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3-storv and concreted basement building adjacent to P. R. R.
freight station in York, Pa. Building of sufficient strength to acconi-
modate at least 50 cigar-making machines per floor. See A. Kauft-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE— Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puflf,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampft,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, ^Ew^^ySa^

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 tbe Tobacco Mer-
chant*' 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 Doe
Dollar ($1.00) will be made. If it necessitates the reportifig 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.

REGISTRATIONS

KAVKAZ: — 46,353. For cigarettes. Russian-.\nierican Tobacco
Co., New York, N. Y., March 28, 1934.

SKOAL: — 46,354. For smoking and chewing tobacco, snuflf and ciga-
rettes. I'nited States Tobacco Co., New York, N, Y.. June 27, 1934.

N. B. C: — 46,359. For smoking tobacco, cigars and cigarettes. Au-
gust 14. 1934. Union News Co., New York. N. Y.

TENDERLEAF: — 46,360. For cigarettes, cigars and tobacco. Au-
gust 30, 1930. Philippe I'oda, Boston, Mass.

TRANSFERS

N. B. Y. C. (New Bedford Yacht Club) :— 29,182 (Trade-Mark Rec-
ord). For cigars, cigarettes and cheroots. Registered October 19,
1903, bv I. Lewis Cigar Mfg. Co., Newark, N. J., who had acquired
same bv transfer from Isaac Harris, Boston, Mass., who registered
this title on March 17, 1885. Transferred to F. C. C. Boyd, New
York. N. Y.. August 27, 1934.
ALBANY GATEWAY:— 19,549 (Tobacco Leaf). For cigars and
cigarettes. Registered August 22, 1900. by J. D. Sweet, Albany,
N. Y. Through mesne transfers acquired by Dearstyne Bros. To-
bacco Co., Albany, N. Y., and re-transferred to E, F<^p€r & Co.,
Inc.. New York, N. Y.. January 12, 1921.
GRANDMONT: — 46,311 (Tobacco Merchants Association). For
all tobacco products. Registered March 28, 1934, by Consolidated
Litho. Corp., Brooklyn, N. Y. Transferred to A. Siegel & Sons,
Inc.. New York. N. Y.. August 28, 1934.
GOLD COAST:— 46,337 (Tobacco Merchants Association). For
cigars. Registered May 31, 1934, by Consolidated Litho. Corp.,
Brooklyn, N. Y. Transferred to A. Siegel & Sons, Inc., New York,
N. Y., August 28, 1934. . . . ,,

ENCANTO: — 46,312 (Tobacco Merchants Association), hor all to-
bacco products. Registered March 28, 1934, by Consolidated Litho.
Corp Brooklyn, N. Y. Transferred to A Siegel & Sons, Inc., New
York,'N. Y., .\ugust28, 1934. . . . ,. •

LA PATRON A: — 46,310 (Tobacco Merchants .Association). For ci-
gars cigarettes and tobacco. Registered March 30, 1934, by Con-
solidated Litho. Corp., Brooklyn. N. Y. Transferred to A. Siegel
& Sons, Inc.. New York. N. Y., August 28, 1934.
BOURBON FENCE RAILS:— 39,641 (Tobacco Merchants Associ-
ation). For cigars. Registered April 1, 191(), by Power Grocery
Co., Paris, Ky. Transferred to James E. Rowland, Pans, Ky.,
August 29, 1934. . , . .

OUINCY— 23,549 (Tobacco Leaf). For cigars, cheroots and ciga-
rettes. Registered July 2, 1902, by Breslin & Campbell, Boston,
Mass. Transferred to Waitt & Bond, Inc., Newark, N. J., in Sep-
tember. 1922. „ ,, ,
ATLANTIC GATEWAY:— 43.518 (T. M. A.). lor a 1 tobacco
products. Registered October 18, 1923, by The Moehle Litho.
Corp., Brooklyn, N. Y. Transferred by American Culortype Co..
All wood, Clifton. N. J., successor to the original registrant, to K.
Popper & Co., Inc.. New York. N. Y., August 30. 1934.
LITTLE PHILLIES:— 15,283 (Trade-Mark Record). lor cigars.
Registered August 1. 1895. by (ieo. S. Harris & Sons. Philadelphia,
Pa Transferred by Consolidated Litho. Corp., Brooklyn, .N./i .
who had taken over the Cigar Label Department of the American
Litho. Corp., successors to the original registrants, to Bayuk Cigars
Inc., Philadelphia, Pa., August 1, 1934.

CORRECTED PUBLICATION
KAVKAZ:— 46,353. lor all tobacco products. Registered March
28, 1934, by The Russian- American Tobacco Co., New York, N. Y.

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la., Pa.
Hanover, Pa.
Cincinnati, Ohio

AUTO KRAFT BOX C O R PC RATI ON ^ ^"'^^ ^^'

Chicago, III.

Lima Ohio Detroit, Mich.

A NatiorvWidc Service Wheeling, W. Va.

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imi'iiHii'iiiii'iiiiiiiiiiTTnTnTTnT

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA,

THE TOBACCO WORLD

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

/when buying cigars

I Rtmember that RegJfdl«M o» Pnc«

I THE BEST CIGARS

I ARE rAOUZ) l>

V WOODEN BOXES

Vol. 54

OCTOBER 1. 1934

No. 19

HERE still seem to be misundorstandings re-
garding the established inininmm i)rice of cig-
arettes in those States where a stamp is im-
l)osed. The amount of the stamp must be added
to the established minimum price. An order from the
Natiomd Kecovery Administration to this effect became
o])erative on September 17th. This means that in
States having a two-cent tax, the retail unit \vill be
fifteen cents. It means also that nmltiple sales of two
packages will be twice fifteen cents, or thirty cents,
less 5 ])er cent., the net being twenty-nine cents. The
prices of cartons will be ten times fifteen cents, or
one dollai- and fifty cents, less 8 per cent, or a dollar
thirty-eight cents net. If you are in a State with a
three, four or five-cent stamj) tax, compute the mini-
mum i)rice by the same formula; add the State tax to
the unit price, and for multii)le sales, deduct 5 per cent,
when the gross is a dollar or under, or a discount of 8
per cent, when the sale runs over a dollar.

Cj3 Ct) [t3

HAT is a line and praiseworthy effort being
nuide by national groups of retailers and wiiole-
salers in the tobacco, candy, drug and grocery
fields to work out a plan for the co-ordination
and consolidation of enforcement work in connection
with their codes. As Siegfried llartnum, president of
the National Tobacco Council, put it, *'Such a broad,
fact-finding survey, provided it is conducted under ex-
pert guidance and with an intinuite knowledge of all of
the interrelations growing out of the National Indus-
trial l^ecovery Act, will prove of value alike to the
National Kecovery Administration and the retail dis-
tribution trades and that only by such a ])rocedure can
sound guidance be obtained in meeting the distinctive
problems of distribution." The groups in this move-
ment are the Drug Institute of America, Naticmal As-
sociation of Tobacco Distributors, Retail Tobacco
Dealers of America, Inc., Limited l*rice Variety As.so-
ciation, Inc., A. B. A. Specialty Co., National Food and
(rrocerv Distributors, and Wholesale Conf<*ctioners
Industrv.

tt3 Cj3 Ct3

KJAR MANUFACTURERS and jobbers are
engaged in the job of filing prices in accord-
ance with the regulations accompanying the
lifting of the stay on the merchandising pro-
visions of the code. As in the case of cigarettes, the
code provides that the stamp tax must be add«'d in the
States where such taxes are in force. The Code
Authority-Blue Eagle stami)s which are to be put on
the packings of cigars will come in two sizes, one for
box goods and the other for package goods. The Au-
thority has made the following ruling pertaining to
holiday packings:

** in order to take care of the holiday package i)rob-
lem and of the objection raised to price marking Class iness amounting to nearly 3 billion dollars.

E cigars or cigars packed in special containers for gift
purposes, the manufacturer may apply to the container
(inside or outside the special holiday wrapping) a
hinged price mark, the stub to be pasted to the con-
tainer. Where such merchandise, so price marked, is
sold in the original container the retailer may detach
the price mark from the attached stub at the time of
sale. However, where the contents of such container
are sold over the counter and the retailer is obliged to
detach the price mark in order to expose such contents,
the manufacturer shall require the retailer to re-apply
the gunmied price mark at some prominent place on the
container."

Prices for the stamps, the revenue from which will
defray the expenses of the Code Authority, are as fol-
lows : 2 cents per M on little cigars ; 5 cents per M on
cigars selling at 3 for 10 cents and less; 7 cents per M
on cigars selling for more than 3 for 10 cents, up to and
including nickel cigars; 9 cents on Class B cigars; 15
cents on Class C ; 30 cents on Class D, and 40 cents on
Class E.

Cj3 Cj3 Ct3

HE TOBxVCCO people are getting back on the
air. George and Gracie have alreadv made
their reappearance, this being their fourth con-
secutive year working on Robert Burns and
White Owl, which i)robably sets some kind of a record
for continuous service, and we still like their type of
comedv, which seems to have been unaffected bv their
sunnner abroad. Camels and Chesterfields and Luckies
will follow. It is noteworthy that the character of the
broadcast programs of these makers of cigars and cig-
arettes is sufficiently varied to attract visitors to them
regardless of their smoking preferences. Just what
this means in relation to the results of the broadcasts
in a sales way is something, of course, that can be the
subject of one of those surveys now so popular in
business.

CJ3 Ctj Ct3

NE of the most amazing revelations of the cen-
sus of distribution was the important part
which wholesaling plays in our national econ-
omy, according to Nathaniel H. Engle, assist-
ant director of the Bureau of Foreign and Domestic
Commerce, Department of Conmierce. It had been
argued for years that the wholesaler was being rapidly
eliminated and the few who still remained w^ere doomed
to early extinction. It came as something of a shock
to learn that in 1929 there were 169,702 wholesale estab-
lishments with a volume of business just under 7(^ bil-
lion dollars, or nearly as great as the total value of all
manufactures in the United States in the same year.
Of this total, nearly 80,000 were the very type of whole-
salers who had popularly been eliminated time and
again over a decade. These wholesalers were very live
ghosts, however, since they transacted a volume of bus-

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street. Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, ^.50 a year. Entered as second-class mail matter,
December 22. 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

Tobacco Exchange Opens in New York

Ten Hogsheads (10,000 Pounds) is Contract Unit

OR iiiaiiv Yoars T liavo th(>ii*»lit that our third
hiri»<'st cash cro]) dosorvod soiiu'thin^ more
than the okl system of am'tion markets to
serve the needs of tlie grower, the merchant,
the exporter, the manufacturer and tlie l)anker. It is
my earnest hope and belief that this excluino:e will fill
the need of this great industry for that protection and
insurance against price fluctuation which for so many
years have been enjoyed by the textile industry
through the New York Cotton Exchange.

"I have already stated that tobacco ranks third
in value among the croi^s of the country, having an
annual production of nearly l,4tK 1,000,000 pounds and
an annual farm value of around $800,000,000. It rep-
resents each year more than 2,000,000 acres of culti-
vation. It ranks fourth in value among United States
exports, amounting to about $100,000,000 each year.
In its processed form tobacco has an annual value of
over $1,000,000,000 and furnishes in taxes one-fifth of
the total revenue of the United States Government
each year.

'*! cite these facts to show that the field for the
New York Tobacco Exchange is a broad one, and with
diligent effort conscientiously applied I am confident
of its success and confident also that in succeeding it
will heap great benefits upon all those engaged in the
tobacco industry."

With those words, John W. TTanes, president of
the newly-organized Tobacco Exchange, formally
opened the exchange at 90 Broad Street, New York
City, on Wednesday, September 19. Edward A. Brown,
secretary of the exchange, in a detailed summary of
the efforts to establish the tobacco futures market,
commended the officials of the Department of Agricul-
ture for their co-operation. He told how the idea of
11^ exchange was born four years i^o as the result

of an address by Governor Gardner, of North Caro-
lina, before a gathering of tobacco growers, ware-
housemen and dealers.

Mendiers of the tol)acc() trade, commodity deal-
ers, brokers and others were ])resent in large num-
bers. The contract unit on the Tobacco Exchange is
for ten hogsheads of api)roximately 10,000 pounds of
tobacco. Quotations are in cents and one-twentieth of
a cent per pound. The minimum fluctuation of one-
twentieth of a cent per pound is known as a point, and
on a ten-hogshead contract amounts to $5. A fluctua-
tion of one cent, or 20 points, amounts to $100 on ten
hogsheads.

Commissions charged by members to non-mem-
bers for a round turn — that is, both buying and selling,
have been fixed as follows: Up to 24.99 cents, $20 to
domestic buyers and $30 on foreign transactions; 25
cents to 29.99 cents, $25 domestic and $37.50 foreign;
30 cents to 34.99 cents, $30 domestic and $45 foreign.
There is an increase of $5 domestic and $7.50 foreign
for the round-turn on each advance of five cents per
pound. Any State or Federal tax payable on tobacco
delivered on contracts is payable by the buyer. When
paid by the seller in connection with delivery it is
added to the contract price when delivery is made.

Trading at present is confined to the U. S. stand-
ard flue-cured type 12, grade B4F, one of the largest
grades in volume grown in a normal year, and used
both in export and domestic trade. It is expected that
a Burlev grade will be added later, but it is unlikely
that cigar leaf will be traded in on the Exchange.

Membershijis in the Exchange have been restricted
to 250, the fee being $1000, associate membership $500.
Membership is open to any male ])erson of good char-
acter and credit and of lawful age and subject to ac-
ceptance by the Exchange.

Come On, Retailers, Pay Your Share!

FEW days ago, your National Association told
you the necessity of organization to n])hold the
merchandising provisions and fair trade prac-
tices in your code. The merchandising pro-
visions in your code were secured by way of an emer-
gency order lasting only ninety days. That order ex-
pires on October 13. To continue these protective pro-
visions against loss-leaders and cut-throat competition,
a national survey of the industry must get under way
immediately. Facts and evidence to prove the neces-
sity of continued protection for the retailers must be
bad at once.

A plan to assess each retailer e<piitably to cover
the expense necessary for this work is pending ap-
proval of the Administrator. It may be weeks before
this assessment plan is approved.

The Code Authority cannot sit idly by, letting day
after day slip away, when every hour is precious. The
time is at hand noii) w^hen the retailers* petition to con-
tinue minimum cigarette prices should be vigorously
followed through to a conclusion.

So far, only a few retailers have contributed to

the cause which will save their bnsTnoss lives. Rrery
mem])er of the retail trade should gladly bear a part
of the expense necessary to properly support this un-
dertaking by their Code Authority.

State taxes: An order compelling the addition of
state taxes to the minimum cigarette ])rices established
bv the emergencv order has been before NKA several
weeks. Lack of funds prevents the National Code Au-
thority sulmiitting the great amount of evidence neces-
sary to secure proper attention for this order. This is
just a samj)le of the embarrassment the Coile .\uthor-
ity sutlers because of inadecpiate finances.

The Philii) Morris Company has generously ad-
vanced $25,000 to support the activities of your code
enforcement and administrative boards. The United
Cigar Stores — Schulte and other large retailers also
subscribed liberally to sustain this work, but no few
friends or retailers, however willing, can assume re
sponsibility for even a large fraction of the sum neces-
sary to carry on the work of the Code Authority. Every
retailer of tobacco products must participate in shar-
ing the expense.

Th€ Tobacco World

Cigars Down, Cigarettes Up, in August

Cigars :
Class A —

United States ....

Puerto Rico

Philippine Islands.

Total

Class B—
United States ....

Puerto Rico

Philippine Islands .

Total

Class C—
United States ....

Puerto Rico

Philippine Islands.

Total

Class D—

United States ....

Puerto Rico

Philippine Islands.

Total

Class E—

United States ....

Puerto Rico

Philippine Islands.

Total.

Total All Classes :

ITnited States ....

Puerto Rico ...

Philippine Islands.

Grand Total

August, 1933 August, 1034

382,403,130

6,019,875

17,240,250

371,792,790

5,610,900

11,276,715

405,663,255 388,680,405

2,204,543

325,500

3,473

2,533,516

46,419,178

105,000

24,126

46,548,304

3,508,978

4,694,013

206,750

65,067

4,965,830

44,946,630
54,400
12,650

45,013,680

3,780,405

3,508,978

3,780,405

284,688
200

238,863

*** io

284,888

238,873

434,820,517

6,450,375

17,268,049

425,452,701

5,872,050

11,354,442

458,538,941 442,679,1 93

CIGAR CODE AUTHORITY RECOGNIZED

The Naticmal Recovery Administration has an-
nounced official recognition of the Code Authority for
the cigar manufacturing industry. The members are
as follows:

Harvey L. Hirst and Frank P. Will, both of Phila-
delphia, and B. G. Meyer, New York, representing nia-
chine manufacturers; Fred Davis and D. Emil Klein,
both of New York, and Jacob Mazer, Detroit, repre-
j^enting hand manufacturers, and J. J. llast, Pitts-
burgh, and Arthur Schwartz, New York, representing
those of the industry who are not members of the
Associated Cigar Manufacturers and Leaf Tobacco
Dealers.

Ira M. Ornburn is the labor member of this Code
Authority, and Robert K. Rinehart n'presents the Ad-
ministration.

Rosa Ponselle, (Jrete Stueckgold, Nino Martini,
with Andre Kostelanetz' Oichestra and choral group
return to the air under tlie sponsorship of Liggett &
Myers Tobacco Co. for Chestertield cigarettes, every
Monday, Wednesday, Saturday, nine to nine-thirty
P. M., starting October 1st.

October J, 1934

Little Cigars :

United States

Puerto Rico

Philippine Islands.

Total

24,229,200
170,000

18,988,147
200,000

24,399,200

(cigarettes:

United States 11,189,333,777

Puerto Rico 560,000

Philippine Islands. 95,380

19,188,147

11,809,522,453

340,000

50,500

Total 11,189,989,157 11,809,912,953

Large Cigarettes :

United States ....

Puerto Rico

Philippine Islands.

Total

200,200
180,000

134,697
86,000

380,200

220,697

Snuff (lbs.) :

All United States..

3,194,155

3,042,763

Tobacco, Mfd. (lbs.) :

Unitf d States .... 29,747,965 27,905,054
Philippine Islands. 24

Total

29,747,989

27,905,054

CHESTERFIELD ON AIR AGAIN

HE premiere of Nino Martini's weekly broad-
casts and the introduction of clever episodes
in ** Syncopated History" will be highlights
in the second program of the resumed three-a-
week Chesterfield series with Andre Kostelanetz* Or-
chestra and Varietv Singers, to be heard from 9 to
9.30 P. M., EST, Wednesday, October 3, over the
WABC-Columbia network. The young radio and
operatic tenor, who recently returned from a visit to
his native Italy, will offer three selections. His aria
will be one of the most famous in the operatic reper-
toire, **0 Paradise** from "L'Africana,*' Meyer-
beer's opera written around the exploits of Vasco di
Gama.

The aria expresses the explorer's joy and admira-
tion on the discovery of the beauties of a tropical land
of which he had alwavs dreamed. Martini will also
sing Penn's popular ballad, ** Sunrise and You'*, and
'*Adios, Granada," farewell toast to the beautiful
women of Spain, by Barrera and Calleja.

Kostelanetz will introduce a distinct novelty in
radio presentations in the episodes of *' Syncopated
History", to be performed each Wednesday by the
orchestra and the 17 Variety Singers. Written by
Charlie Henderson and Pat Ballard, the episodes are
sophisticated satires on famous people and events,
presented in miniature operetta form. *'Mr. Nero,"
telling in music and lyrics what might have happened
during the famous burning of Rome, will be the first
of the series. Other features will be "Limehouse
Blues", presenting the Stella Friend Quartet, a unit
from the Variety Singers, and two orchestral offer-
ings, ''The Very Thought of You" and *'Say It."

MIA.

BAYUK BREVITIES
N the Trenton, X. J., territory where Bayuk
Phillies enjoy active demand and sale the
brand is distributed by A. D. llanaiier — ever
ready to effect ])rom])t dealer service. . . .
A recent visiior at the Bavuk factorv was Charles Mc-
intosh of William F. :\rcIntosh Co., Edju-erton, AVis.,
leaf dealer, and Mrs. Mcintosh, who hailed their trip
through the i)lant as a most interesting experience.
. . . Joseph Friedman Sons, Inc., Bayuk distributor,
Bethlehem, Pa., is doing a fine job on Bayuk Phillies,
and reports a steady call for this i)opular cigar. . . .
P^'rom Los Angeles, California, where Bayuk Phil-
lies are sold tlirough Haas, Baruch & Co., under the
supervision of John J. Snyder, territorial manager,
the factory is receiving substantial orders with regu-
larity in keeping with the remarkable consumer ac-
ceptance of the brand in that territory.

G. H. P, ACTIVITIES

. A. JENKS, assistant sales manager for G. H.
P. Cigar Co., spent the week in New York
State, attending meetings of the company's
brancli houses in New York, Kochester and
Buffalo, promoting, of course, the Kl l*roducto and La
Azora lines, which recently inaugurated their annual
fall advertising cami)aigns' . . . Frank P. Will, execu-
tive vice-president, has not been able to get a moment's
respite after his herculean labors in belialf of the mer-
chandising provisions of the code, his own business and
code work still keej)ing him on the ho]).

MANNIE PEREZ, A. C.

XDKR the leadership of Mannie Perez, Asso-
ciate Captain, nineteen cigar and tobacco men
from points along the Atlantic Seaboard, at-
tended the men's week-end retreat at St.
Joseph's in the Hills, ]\ralvern. Pa., beginning Friday
evening, Sei)tember 21, and ending the following Sun-
day afternoon. Among the retreatants recruited froin
the tobacco trade were: Charles Waters, John Flani-
gan, and John Pappero, Yahn & McDonnell; Harold
Dean, Wilmington; J. L. McGuerty, Romeo y Julieta;
J. Culver Wolf, New York ; Carl A. Werner, Editor
*'Tobacco Leaf"; Joe Martin, Nicholas Co., Inc.; J.
T. Scullv, Boston; Mr. Cunningham, Max Schwarz
Vo.; Mr. Nathawav, Benson & Hedges; Mr. Miller,
Hotel Astoria Cigar Stand ; Mr. Sullivan, Hotel Penn-
sylvania Cigar Stand.

Trade Notes

Barton Lemlein, of M. Sacks & Co., New York City,
was a visitor here last week.

James Stillwell, popular member of the sales force
of Yahn & McDonnell, who was injured in an automo-
bile accident a few weeks ago, is still confined to his
home, but expects to be able to resume his duties in a
short time.

The Gimbel Bros. de])artmeiit store cigar stand
has a splendid display of Don Sebastian and Wagner
cigars this week, which is producing new friends for
these quality ])rands. Botli brands are being shown in
a variety of sizes ranging up to three for 50 cents.

The new International Restaurant, which has re-
cently oi)ened for business in the basement of tlu?
AVidener Building formerly occupied by the Arcadia
Cafe, is enjoying an excellent call for Yahn & McDon-
nell brands. * Yahn & McDonnell brands are supplied
exclusivelv at the cigar stand in this new restaurant.

Frank Flanigan, in charge of the M. J. Dalton
l»ranch of Yahn & McDonnell, at f>17 Chestnut Street,
is receiving commendation on the attractive display of
Langsdorf cigars, product of S. H. Furgatch y Ca.,
which he is featuring in his window tiiis week, and
which is producing new friends for the brand.

Mr. .lose])h Wagner, of John Wagner & Scnis, Dock
Street, distributors of imported and domestic cigars
and tobacco ])roducts, has just returned from a few
weeks' trip to England, returning via Havana and M(;x-
ico ( itv. Durinir his stop in Havana Mr. Wagner vis-
ited the Romeo v Julieta factory and was impressed by
the splendid or'iranization in the factory and the fine
workmanship dNplayed. Mr. Wagner reported Inisi-
ness was going on at a good pace and the owners ot the
factory w^ere much encouraged over the recent mci-ease
in deniand for their |)ro<luct in this country.

Tkt Tobacco World

Dividend — Not Price Cut

How This Company Handled Reduction

By JEROME KLORFEIN
Vice President, Garcia Grande Cigar Co., Inc.

S IN many other industries within the last few
years, there has heen a gradual change in the
field of cigar manufacturing. Competition
had reached a high point. Marketing exi)erts
had been employed by the ditTerent production units
to seek solutions for the many problems that arose
from such keen competition. An unusual change that
occurred was in the i)ublic acceptance of the five-cent

cigar.

As a part of our merchandising policy, which has
been successful for over thirty years, we manufactured
both a five-cent and ten-cent cigar. The former was
called the ''Baby" and the latter the *'Queen." The
"Baby" size was the smaller cigar and the "Queen**
the larger shaped cigar. It became evident to us tiiat
the trend was toward the five-cent cigar, and in view
of this fact we exerted most of our sales effort behind
this unit.

This swing toward (he cheai)er cigar was not
simi)ly a (piestion of economic necessity — cigar manu-
facturers were developing a larger and })etter five-
cent cigar than had ever ])reviously been produced.
Along with the current trend, the Ba))y size increased
in demand, while the sales of the Queen had remained
fairlv static.

»

At one of our weeklv conferences it was suggested
by one of our executives to reduce the price of the
Queen to five cents. Months of deliberation between
our buvers and our executives immediately followed
this suggestion. We found that owing to the advan-
tages of buying our stock of tobacco during a depressed
period, and due to the fact that such a jirice leduc-
tion would greatly increase our volume of bmsiue^Sy
we were al)le to make such a daring move.

This would not onlv immediatelv increase onr ^vQ'
cent business, but at the same time pass on to the con-
sumer the savings which had accrued from the wise
purchasers of large quantities of raw material in the
open market. It was felt that tol)acco which was in-
tended for the use of ten-cent ciirars, haviiig been
bought at unusually low i)rices, rightfully belonged to
those consumers who made it j)ossi})le for us to make
such i)urchases, and that they should be given the real
advantage.

The only jn-oblem was whethe» this particular
shape would be pleasing to the Baby smoker ;ind also
garner for us a bumper crop of smokers of competitive
brands of cigars.

Some 500 stores were chosen for a test throughout
the metropolitan and urban districts surrounding New
York City and other large centers >u(li as Chicago,
Cleveland and Detroit. In each store we placed on
the counter a box of Babies. The sale of this size was
accurately checked by our divisional managers and
within a short time we then placed a h(»x of Queens
(priced at five cents) alongside of the Ihjx of Babies.
We immediately ascertained that th(» sale of these two
sizes far exceeded the sale of any one competitive
brand.

October /, 1934

Subse(iuently, the box of Babies was removed fr(mi
the counter, but the sale of Queens continued to go
ahead. However, upon questioning the individual
dealers we found that in spite of the fact that the
Queen remained on the counter in a prominent posi-
tion, numerous smokers insisted on the Baby size. This
would indicate that we have secured two individual
shai)es which appeal to two different tyjies of smokers
in the five-cent field. It was also more or less proved
that our sales volume would be greatly benefited by
the reduction of the Queen to five cents.*

The (juestion of advertising was the next im-
portant factor to consider. The opening advertisement
carried with it the caption, "Collect Your 50 Per Cent,
Dividend." In the last few years, the declaration of
a dividend has been hailed as an almost epoch-making
event, and conse<piently the public interest in such a
message was immediately aroused. So appealing was
the nature of this campaign, that the sale on the Queen
size showed a decided increase almost immediately,
while orders from our branches and distiibutors
throughout the country indicated that there were still
many smokers who wanted the smaller shai)ed cigars.
We also employed liberally such dealer helps as win-
dow streamers, window displays, outdoor and indoor
displays of all tyi)es, and also used with a great deal
of success large twenty-four-sheets scattered through-
out the metropolitan area.

Our fall campaign which begins duing the week of
Sej)teinber 24th ami will run through Christmas will
be twice as large as the previous canqiaign. Most of
the characteristic elements of typography and layouts
will remain unchanged. The message instead of being
"Collect Y'our 50 Per Cent. Dividend" will read
^MJarcia Grande (V)ntinues Its 50 Per Cent. Dividend."
This will convey to the consumer the message that the
reduction of the i)rice of the Queen size has become a
permanent plank in our merchandising i)latform, and
he is therefore assured of enjoying a quality cigar at
a satisfactory price.

A high pitch of enthusiasm permeates our entire
organization. Broadsides of new copy are constantly
being mailed to salesmen along with sales letters uri;
ing them to do their part. The thieo factors of sales
etTorts, advertising and (piality have all served their
purpose to make our campaign a huge success.

The forajoinn is ref^rintcd from the Scf^tcmhcr Jutli issue of Printers'
Ink.

TAI VISITS OUR FACTORIES

K. S. Funder Tai, president of the Ilwa Cliing
Tobacco Co., of Shanghai, one of the largest tobacco
firms in China, and a large customer for American
tobacco, has arrived in this country for an inspection
of American factories and tobacco markets, lie pre-
dicts that American tobacco will find an increasing
market in China, which now ranks second to (heat
Britain as a buyer of this product.

Cigars Up 147 Millions in 8 Months

Cigars:
Class A —

United Statos . . .
Puerto Kico ....
Philippine Is

Total

Class B—

United States . . .
Puerto Rico . . . .
Pliilijipine Is

Total

First 8
Mas. Cat.
Year VhU

12,527,2(52,(U0

.17,7-47,220

13;),()09,220

- — Decrease

-\- 1 ti crease

Quantity

+ 94,517,520
4- 1,347,025
+ 4:M 58,470

2,704,(;iJ),080 + 139,023,015

30,327,089 -f

1,045,200 —

319,474 4-

1 2,750,00(5

1,175,350

187,994

Total All Classes:

United States . . .
Puerto Rico . . . .
Philippine Is

Grand Total ..

Little Cigars:

United States . . .
Puerto Rico ....
Philippine Is., . . .

Total

2,924,151,461

39,249,470

140,035,921

+ 103,488,108
-h 231,195

+ 43,313,990

3,10;],436,852 -f- 147,033,359

154,504,800 f
1,601,000 —

14,129,547
373,000

156,105,800 + 13,756,547

31,691,763 + 11,762,650

CkssC—

United States
Puerto Rico .
Philippine Is..

Total

340,(;94,0(i(i
455,550
105,212

400,542
58,520
32,736

Cigarettes :

United States . . . 85,661,788,183
Puerto Rico .... 2,754,250

Philippine Is.. . . . 1,499,020

+7,237,140,086
-h 197,650

-h 571,470

Total ......... 85,666,041,453 +7,237,909,206

341,254,828 — 374,758

Class D—

United States . . .
Puerto Rico ....
Philippine Is.»»,.

Total .........

Class E—

United States . . .
Puerto Rico . . . .
Philii)})ine Is

Total

23,916,045
1,500
1,250

23,918,795

1,951,621

— 2,89(),941
+ 1,000

— 76

Large Cigarettes:

United States
Puerto Rico .
Philippine Is..

Total ......

7,303,685 +

85,635,450

426,(MK) —

189,000

200 —

1,737

87,72!),885 + 85,444,713

765 +

2,896,017

481,875

I • • •

344

Snuir (lbs.):

All United States 25,525,677 + 1,202,781

• «•*••

1,!)52,386

481,531

Tobacco, mfd. (lbs.) :

United States . . .
Philippine is., . . .

Total

210,523,971 +. 390,514

23 — 104

210,523,994 +

.3m),410

To Stabilize Marketing of Two-fers

S AVK Lio to i)res>, a ])u]>lic hearing is l)eing
conducted in the Maytlower Hotel, Washing-
ton, on jiroposals of the Code Authority for
the cigar manufacturing industry and intended
to stabilize \\\v marketing of two-for-five-cent cigars,
I)ei)Uty Administrator I. S. Moise, presiding. The
Code Authority asks the Administration to i)Ut into
etTect eleven r.»commendations. One would liave all
manufactureis of "cigars, stogies and cheroots nuide
to retail at two for live cents" become bound ]»y all
the ]>rovisions of the cigar manufacturing iinlustry
code. Because of unstable market conditions, certain
exemptions from the code have been granted.

The Code Authority also projio.ses that two-for-
five cigars sold in the continental United States shall
weigh not more than eighteen pounds per thousand,
and shall be packed at least 100 to the container.

The price of such smokes weighing thirteen to
eighteen pounds per thousand would be set at a
minimum at ^^^20 a thousand to the retailer, and $18

8

per thousand to the jobber, in each case subject to 2
per cent, cash discount. For such cigars weighing
less than thirteen j)ounds per thousand the minimum
]»rices would be forty cents per thousand less. Special
allowances '* which in efTect reduce the prices" would
he forbidden.

The Code Authority i)roposes further that all ex-
emptions from the code terminate October 1st, and
that the minimum jirice ]>rovisions become efTective
then. The weight limitation an<l the restriction on
method of packing, would go into operation on Jan-
uary 1st.

Cheroots weighing less than thirteen jHUinds per
thousand, and so-called "little cigars," would not be
affected by any of the proposed rules.

It was ])ointed out that adoption of the proposals
would not change the cost of two-for-a-nickel cigars
to the consumer.

The regulations would be effective on all sales of
two-for-five smokes, whether of domestic numufacture
or imported.

The Tobacco World

RAILROAD mSTORY entered

a new phase as the Burling-
ton's "Zephyr" flashed across
the Great Plains from Denver
to Chicago— 1015 miles in
785 minutes — to set a whole
flock of new records! Jack
Ford was at the throttle.

A PLEASURE that drives
away fatigue and listlessness!

SPOITSWOMAN PILOT. Mrs. Cecil
Kenyon says: ** Morning, noon and
night I can smoke Camels steadily —
without a touch of upset nerves."

Jack Ford, Burlington engineer, says:
"When the 'Zephyr* rolled to a stop
at Chicago, I'd been through a lot of
excitement and strain and felt pretty
much used up. But a Camel quickly
gave me a 'lift' and I felt O.K.

"Most engineers prefer Camels. And
Camels help to increase their energy
when they feel worn out. I've smoked
a lot of Camels in my time, and that
goes for me — all the way."

Everyone is subject to strain —

whether physical, mental, or emotional.
So it's important to know that Camels
do release your stored-up energy.

The findings of a famous scientific
laboratory confirm Camel's "energiz-
ing effea." So begin today to enjoy
Camels often! For the costlier tobaccos
in Camels never affect the nerves.

LEAF-TOBACCO EXPERTS AGREE:

I frMn finer. MMfv Cuptmnx Tobscccc
-TmtUsIi and Dmmtic - tfian any otiwr pnpnlar brand."

fICtlTAIY. Elizabeth Harben: "I am
careful in my choice uf cigarettes.
I prefer Camels. They don't make
my nerves jumpy."

TUNE IN I CAMEL CAR A VAN with CUn Cray'* Ca»a Loma Orch*»tra.
Waltmr O'K—fm. Annmttm Hanmhaw. othmr hmadlin*r». TUESDAY,
to P. M., E. 5. T.-9P. M.. C. S. T. -8 P. M.. M. S. T.-7 P. M., P.S. T.
THURSDAY 9 P.M.. E.S.T.-8 P.M., C.S.T.-9:30 P.M.. M.S.T.
—9:30 P. M.. P.S. T., oomr WABC-Cotumbia Network.

Camel's Costlier

Tobaccos never get

on your Nerves!

R J. Kcynohla
Tobacru Company

October i. tgs4

Tobacco Trade in Foreign Markets

TJVERPOOL— The inarkoi for AnuM-ican to-
baccos was considorablv more active duriiij*- Julv than
ihiriiij;' the ])rcvious month and showed an even greater
inii)roveinent over a year a,i»o, according- to tlie monthly
Liverpool tobacco market re])ort byAm(M"ican ViceCon-
P. H. Ilnbbard, made ])nblic by tlie Tobacco Division,
Department of (^>nnnerce. During' July, 111).') hous-
heads of American tobacco were im])orted into Liver-
]iool com])ared with 7973 in June and 3124 a year ai^o.
The lari»e decrease in com])arison with a month au'O
was due principally to the scarcity of supplies. Im-
]iorts durins: the first seven months of the year are
ai>])roximately 10 per cent, less than those durin«: the
same period last year. This decrease is also due ])rin-
ci pally to shortasfo of supplies.

Deliveries at Liverpool durinir July totaled 6101
hoiishead com])ared with 13,401 hosi:sheads durin«2:
June, and 0223 durinu: Julv 1933. Deliveries at Liver-
pool were abnornuilly larije durinir June and it is be-
lieved that it is for that reason that they were rela-
tively small durinir the present month under review.
Since January 1, 1934, 50,281 hoo;slieads of American
tobacco have been delivered in Liver])ool, as compared
with 28,314 durinir the same period of 1933. From
these ficfures it may be seen that deliveries increased
by ap]n*oximately 80 per cent, durinp: the first seven
months of the present year as compared with the same
period a year acfo.

Stocks of American toT>acco at Liverpool at the
end of July amounted to 91,663 hoirsheads (•om])ared
with 89,427 at the end of June and 102,147 a year aero.
Stocks at Liverpool were therefore a])])roximately 10
per cent, less than a year aero. Total stocks in Great
Britain decreased by appoximately 12 per cent.

The prevail iiiir prices of American tobaccos, as
furnished by a leadins: Liver])ool importer show no
change from the prices quoted last month.

•

LAS PAL"NL\S — ^Trnport statistics coverinir im-
ports of leaf tobacco into the Province of Los Palmas,
Canary Islands, durinir the first rpiarter of 1934, as
ol>tained from the Free Port Administration of Las
Palmas, by American Consul C. P. Wliarton, and made
iniblic bv the Tobacco Division, Department of Com-
merce, show an increase of 109,465 pounds over the last
quarter of 1933. Total leaf imports into the Province
of Las Palmas in the first quarter amounted to 522.327
pounds, of which 260,185 pounds were credited to the
United States.

Imports of leaf from the United States consisted
of dark tobaccos of Kentucky, Tennessee and Virsrinia.
Xo information is available in regard to type< of to-
bacco imported from other countries. Imports from
other countries include Cuba, 67,538 pounds; Brazil,
1984: Mexico, 366; Xetherland India, 5351 ; Dominican
Pepublic, 149,490; Parasruay, 26,539; Buliraria, 6008;
ITuncrary, 1689; Panama, 1656; and Palestine, 1523.

SANTA CRFZ DE TEXEPIFE— There were im-
ported in Santa Cruz de Tenerife durinir the first (piar-
ter of 1934, according: to official statistics 481,015
pounds of leaf tobacco, of which 145,058 ]»ounds were
credited to the United States. Reviewini^ statistics fur-
nished by the administration of the ])ort, American
Consul David J. D. "Nfvers in a report made ])ublic by
the Tobacco Division, Department of Commerce, states
that by ports of embarkation, there were landed at

to

Santa Cruz de Tenerife 15,434 pounds of leaf tobacco
from Hamburu' and Bremen; 1255 pounds from Liver-
])ool; 16,682 pounds from Antwerp; 248,994 pounds
from the Xetherlands; 9039 ])ounds from Cuba; 44,553
pounds from Spain, and 145,058 pounds from New
York and New Orleans. The most of that embarked
in Euro])e is of doubtful orijj^in. Private statistics
show that 48,735 ])ounds of Cuban leaf and 11,465
])ounds of Santo Domingo leaf were imported during
the quarter.

CZECHOSLOVAKIA— The Czechoslovak To-
bacco Monopoly made an attempt to increase tobacco
])roduction in Southern Slovakia and Ruthenia where
production was small, since that part of the country
])ossesses favorable conditions and in 1919 production
was conmienced by 372 farmers. The sown area of
(>03 hectares ])roduced approximately 500,000 ])ounds
of tobacco which netted the sum of 1,413,000 crowns.

The Government tried by various means, such as
allowing credit, giving tracts of land, and subsidizing
tobacco farmers, to increase this production and was
successful to the extent that in 1929, that is, after a
])eriod of ten years, the sum of 54,473,603 crowns was
paid to 4517 farmers for 20,206,724 pounds of tobacco.
The area sowii in 345 districts was 6377 hectares. The
number of ai)plicants for tobacco-raising permits in-
creased steadily and the Government now gives such
])ermission only in special cases and only to qualified
a])plicants. The tobacco farmer is under constant Gov-
ernment su]iervision and may sell his product only
to the Tobacco Afonopoly. He must also use only
seeds given him by the Monopoly free of charge. The
farmer having the best tobacco, as regards quality and
appearance, receives a reward in the form of a bonu.s.

The Czechoslovak Tobacco ^fonopoly nuinufac-
tures cigars, cigarettes, cigarette, pipe and snufF to-
bacco, and tobacco extract. Tobacco extract is ob-
tained in the manufacture of special cigars called 'Sir-
zinka"; it is the refuse after ** washing '* of **virzinka"
tobacco and is used as an insect destroyer on farms,
especially hop farms. One important feature all the
products of the Tobacco Monopoly have in common is
that thev are all made of various kinds of tobacco,
no one brand alone is ever used ; in other words, blends.

SOUTHERN RHODESIA— The Tobacco Divi-
sion, Department of Commerce, has been advised by
American Acting Commercial Attache E. B. Lawson
that in Southern Rhodesia the June quarter witnessed
the completion of the curing of the current season's to-
bacco crop and deliveries were being made in consider-
able quantities. Normally the largest part of the ex-
ports of tobacco are despatched during the third nuar-
ter of the year, and it is expected that the period July-
September will record the irreatest volume of tobacco
shipped to Great Britain, the chief export market for
Rhodesian tobacco.

Statistics of tobacco production during the 1933
season were published during the current quarter and.
according to returns supplied by growers, the total
crop of tobacco in 1933 amounted to 14,170,642 pounds
comprising Flue-cured 12,927,413 pounds. Fire-cured
787,727 ])ounds. Sun-cured 43,157 pounds, Air-cured
14,089 pounds, and Tnyorka 4900 pounds.

A forecast of tobacco plantings of the 1933-34
season, the crop of which is now being sold, indicated a

Tht Tobacco World

October i, 1^34

tt

very substantial increase in the current crop, but as
yet no official crop fi<>ures have been issued. It is esti-
mated in reliable quarters that the total volume of to-
bacco comini? in the market will be 17,000,000 pounds
to 20,000,000 ]M)unds but the approximate fisiure is in-
determinable at this time. The quality of the leaf is
believed to be higher than it was last year.

Anticipatinu' an unusually larue cro]), the South-
ern Rhodesia Tobacco Association introduced meas-
ures to ]irevent a disastrous break in price due to a
laroe crop surplus. The latest scheme to keep the
Coioiiy's production of tobacco within marketable
limits is desiirned to provide flexible control of pro-
duction. It provides that in the event of overproduc-
tion next season, all iri'owers who have produced in
excess of their 1934 crop will be compelled to withhold
from the market such proportion of the excess crop
as the Council of the Association may consider advisa-
ble. Provision is also made that such £rro\vers will be
allowed, if they can do so, to dispose of their excess in
any market other than the United Kinofdom, Union, or
local markets. The scheme is expected to be success-
ful onlv if supported bv the prrowers.

GREEK MACEDONIA AND THRACE— Al-
thouiih several months as:o conditions in the interna-
tional market appeared favorable for the disposal of
the old Greek tobacco stocks held by the free trade and
banks, the movement of these stocks has not developed
as anticipated owing largely, it is claimed to lack of
elTective organization.

As set out in a report by American Consul Harry
Ti. Troutman, made public by the Tobacco Division,
Department of Commerce, to overcome the situation as
reirards the sale of old stocks of Grecian tobacco, the
Union of Offices of Protection of Greek Tobaccos re-
cently suggested the organization of a company which
would also be participated in by all banks holding to-
bacco stocks as collateral for cash advances to tobacco
merchants, and which would concentrate all old stocks
of the free trade and banks, assume their maintenance
and imdertake their sale under the barter system. , The
]\rinister of National Economy is quoted as being pre-
pared to request the government to allow, in excess of
existing import quotas, the importation of various
kinds of merchandise accepted in exchange for the to-
bacco. As the old stocks of tobacco mortgaged with
the banks have depreciated in value, it has also been
proposed that the merchant-s be legally relieved from
the pa^Tnent of any deficits between the sums borrowed
and the amounts realized from the sale of these stocks.
The banks are reported to have accepted these pro-
posals in principle, and are now said to be in negotia-
tions for the realization of this scheme.

UNION OF SOUTH AFRICA— According to a
report to the Tobacco Division. Department of
Commerce, by Acting Commercial Attache P^d-
ward B. Lawson, there has been no change in the
official estimates of tobacco production for the
1933-1934 season in the Union of South Africa
and a total of something less than 14,000,000 pounds
(not including native reserve) is anticipated. Vir-
tually all of the production will be of the Virginian type
as only 175,000 pounds are estimated to be Turkish.
The quality of leaf received by the co-operatives wa«
reported to be satisfactory and buyins: progressed at
normal rates. Prices, although not high, are generally
regarded as satisfactory. The import situation ha-
not changed and there is vet no indication of the prob-
able alteration in the Southern Rhodesa-Union of

u

South Africa Customs provision concerning the quota
of Rhodesian tobacco permitted to enter the Union
annually.

BAITIA — During the month of June 1934 the ship-
ments from the interior into Bahia, Brazil, amounted
to 57,920 bales of tobacco, and the stocks on hand on
June 30, 1934, reached the total of 149,648 bales.
(American Consul Lawrence B. Briggs.)

CUBA — The Council of Secretaries of the Cuban
Government a])proved on August 24, 1934, a decree-
hiw reducing the stamp tax on cigarettes from one cent
to three-quarters of a cent on a package containing six-
teen cigarettes, or less, and to one and a half cents on
a package of cigarettes containing in excess of sixteen
cigarettes. Since the new trade agreement with Cuba
]n-ovides for national treatment, American cigarettes in
]>ackages of twenty will ])ay a stamp tax of one and a
lialf cents as against the present tax of ten cents per
] package. (American Conmiercial Attache Walter J.
Donnelly.)

ONTARIO — According to press despatches from
Delhi, Ontario, material damage in Norfolk County to
tobacco crops has been caused by severe frost and
]>lants on approximately 4000 acres were killed. Based
on the average production of 700 pounds to the acre
this would cause this year's yield to be 2,800,000 pounds
less than would otherwise have been expected. The
destruction of 4000 acres with the already decreased
acreage of 25 per cent, from last year's planting will
have a material showing in this year's production.
(Ameiican Commercial Attache H. M. Bankhead.)

BRITISH COLONIES— During July the market
for British Empire tobaccos was quiet. Imports in-
creased from 862,895 to 1,118,830 pounds. Deliveries
from warehouse during July were only slightly greater
tlian in June. (American Consul Phil H. Hubbard.)

CZECHOSLOVAKIA— The Czechoslovak To-
bacco ^fonopolv sold a total of 954,500,000 cigarettes
in July as against 986,500,000 in June. The bulk of
cigarette sales was of the cheapest grade, amounting
to 740,000,000 in Julv and 768,000,000 in June. Fur-
ther sales in July included 14,040,000 cigars, 101,282
]munds of cigarette tobacco, 1,385,106 pounds of pipe
tobacco, and 9259 pounds of snuflF. June sales included
14,700,000 cigars, 105,270 pounds of cigarette tobacco,
1,567,8.34 pounds of pipe tobacco, and 10,472 pounds of
snuff. It will be noted that sales of all tobacco prod-
ucts in Julv were below those in the preceding month.
(Clerk in Charge T. J. Hadraba.)

GERMANY— Total receipts of the German Gov-
ernment from tobacco taxes during May 1934 amounted
to RM 53,500,000, as compared to receipts of RM 50,-
300,000 during the preceding month, and as against
RM 55,500,0(K) obtained from these taxes during the
same month of the preceding year. Of the month's re-
ceipts, 24.2 per cent, came from the tax on cigars, 61.4
per cent, from cigarettes, 0.3 per cent, from chewing
tobacco, 0.7 per cent, from cigarette tubes, 0.1 per cent,
from finely cut smoking tobacco, 8.7 per cent, from tax
]»rivileged finely cut tobacco, 4.5 per cent, from pipe
tobacco, and 0.1 per cent, from snuff tobacco. Produc-
tion during May included 604,900,000 cigars, 3,152,0(MJ,-
000 cigarettes, 14,700,000 pieces of chewing ,lobaccf>,
145,000,000 cigarette tubes, 5.1 tons of fmelyJBut smok
ing tobac<*o, 1205 tons of tax-favored fine cuC 1(^02 tons
of pipe tobacco, and 135.5 tons of snuff tobac<»o.
(American Vice Consul Zawadski.)

IRISH FREE STATE— The grower of tobacco
during the coming year in the Irish Free State will

Tht Tobacco World

Cigar§ are the
moHt pleasurable
goci economical
form of smoking.

BAYUK BULLETIN

WiOOOMnWT

> OLUME II.

OCTOBER 1, 1934

NUMBER 18

PHULOFAX

(The Retailer^ s Friend)

SAYS

Labor Day, looked
upon as the last lay-
off day, has come and
gone . . . now with
vacations out of our
systems, let's get go-
ing!

"S >Id more box lots of cigars Fri-
day and Saturday before Labor Day
than any preceding year . . . had all
popular brands stacked up on my case
. . , prices plainly marked . . . made
little selling suggestions and GOT
THE BUSINESS," so says M. R. L.,
a progressive retailer.

Phil will bet a load of coal against
a loaii of ashes that this same pro-
p-ess ive retailer is already working
on plans to sell cigars by the box for
Thanksgiving Day.

Incidentally, it is NOT TOO EARLY
to scheme up stunts for Christmas
sales . . . start planning to sell 'em
50 cigars — not just 25 !

When a product goes over bfg: In a
salesman's territory, to what factor
should credit be given? To the qual-
ity of the product? To the publicity
back of the product or to the sales-
man .selling the product?

Dirticult, Phil admits, to attribute
the right proportion to each of these
dominating factors BUT we, as sales-
men, should so perform our job that
we Kit at least 33»<i% of the credit.
Right ?

J. I'. G., our punster, sends this in:
"With all the strike talk in the air
thest (lays, did you ever stop to think
that matches were always on a

strik«?"

Send another in like that, Percy,
»nd your light goes out!

"R« cause of seasonal conditions, Au-
Kust IS usually one of our dullest
inonths . . . August 1934 was the big-
Itest month this year. The reason can
be summed up in a four letter word,
Jtarting with W and ending with K,"
proudly proclaims C. F. B.

Wonder what in the name of heaven
thoso two other letters can l)e . . .
Phil will ask Mrs. Phil . . . she does
tfoss word puzzles.

Th< (]ame of Selling is not a Game
M Ma^ic. Its rules and regulations
[*re n t in a cipher code of mystery
jbot an clear and open to all who seek
tol<:, r, -with the rich recompen.se of
l^ ni (•• you learn, the more you earn.
You lan be led to the tank of knowl-
Nge I ut you, yourself, must TUINK.

HE TALKED HIMSELF INTO IT

The Harder They Kick, the Tighter They^re
Caught — Sometimes

By F. J. H.

(7!^^'

D.B.I.

'^>ru,h^ ^ith B4YI'K CSGAII«t INC, PkiUt-
^km — Mmkan •{ fkm» Hgmn atoM J«*7

You often hear of a salesman
talking himself out of a sale, but
some time ago I had a customer
who talked himself into one. He
was about as close a buyer as I
ever met. His one idea was how
long a profit he could make on a
cigar and he wasn't backward
about saying so. I never had sold
him my brand and it looked like
I never would. But I thought I'd
give him one more whirl.

This particular day I stepped
into his shop and started to give
him the works about the quality
of my cigar. "Save your breath,"
he said. *1 don't mind admitting
you've got as fine a five cent
cigar as there is. If it's any con-
solation to you, I'll admit it's the
best of the lot. But — I make a
longer profit on the brands I
carry and profit is the only thing
that talks to me."

I happened to cast my eye
around and noticed there were
several customers in the store
and they seemed to be taking an
interest in the argument. So I
egged him on to spread himself.

"Well," I said, "Jones and
Smith and the O. K. Smoke Shop
— every dealer in this part of
town carries my brand."

"I guess maybe they're all in
business for their health or
something. But not me, boy.
I've told you you've got a swell
cigar. But until you give me a
better price — " All at once he
stopped. He's no dummy and he
saw he'd put his foot in it up to
the ankle. He could hear those
customers' minds working, and
he knew they were a darn sight
more interested in the quality of
the smoke they got than in the
profit the dealer made. And
(worst of all) they'd heard me

{PanAnueA \r\ next ccXumrC)

BAYUK BRANDS BUIi.O BU<«SNi:s.4

'Bavuk PliillirH*

(BAYIK. PHIlJiI>l-:i.PHlA PEBPECTO)

Havana Kihbon
Mapacuba

C^harles Thomson
Prince Hamlet

say all the other dealers were
carrying my cigar.

"Hell," he said. "Send me a
hundred. I'll lose money on 'em
but send 'em along anyway."

"No, you won't lose money on
'em," I said. "Give 'em a good
break on the display and I'll
guarantee they'll be the biggest
money maker in your store.
They've got the quality, they're
well advertised, they've got a
tremendous demand. The only
kind of profit that counts is

rolunir profit."

"0. K.," he said. "But if there
are any of these cigars left, next
time you come in here, I'm going
to make you eat 'em."

That's been quite a time ago
now and I haven't eaten the
cigars. But I've sold that cus-
tomer a good many thousand
since. You see, it's his best
seller.

LOOK AROUND FOR THE
^TORGOTTEN CUSTOMER"

Every once in a while (so Joe
Floersheimer advises his fellow cigar
salesmen) it's a great idea to check up
your route list for the "forgotten
customer".

This forgotten customer may be a
prospect who was so hard boiled that
you finally gave him up as a bad job.
How do you know that better business
conditions haven't softened him up a
bit? Then, there's the chap whose
credit used to be bad. Well, credit
ratings have a way of changing.

There are other customers you have
forgotten because you never knew
them. What about the new drug store
or grocery or tap room that has been
opened up recently? What about that
stationery store or barber shop or
lunchwagon which doesn't carry cigars
at all — maybe, because nobody ever
sold them the idea?

There are plenty of forgotten cus-
tomers in the best salesman's terri-
tory. Let's look them up.

Everybody's a football fan these
days. Now's the time to put that foot-
ball display in your window, Mr. Re-
tailer. And especially on the days of
the local games, don't forget to dis-
play your five-packs with the sugges-
tion that it would be a good idea for
the masculine rooters to stock up for
the game.

THE OLD GENTLEMAN MUST BE FEELING BETTER

We used to worry about the stock
market because somebody told us it
was a barometer of business condi-
tions. We used to strain our eyes
over those wriggly looking charts the
statisticians put out — and set ourself
problems like this: "If car loadings
are down and retail sales are up, how
many bushels of com to the acre in
Kansas next summer?"

But no more. These days we don't
even pretend to know nothing about

nothing but the cigar business. We
observe that Uncle Sam is smoking
more, a whole lot more, cigars this
year than last. From this one circum-
stance we deduce that the old gentle-
man must be feeling better.

We wonder, if everybody stuck
strictly to his own knitting and let
the statisticians attend to theirs,
whether business wouldn't be a long
way further out of the wootls than
it is.

TIGHT BINDING

realize an average of about 1/5 per i)ound. There
were, in fact, ai)piications at a priee of l2d. a pound
less, because it was increased by 2d. in the Bud-
get. At 13 a pound there were applications for 8500
acres, but only about 1000 acres could be allowed
for this year. Even on that basis it will probably be
necessary to include quite a high ]jercen\age of the
tobacco in i)lugs and pipe mixtures during the coming
year, and cpiite a small percentage in the cigarette to-
bacco. (American Charge d 'Affaires ad interim
James Orr Denby.)

BULOAKIA — The (Jerman Keemtsma concern
has recently made an agreement with the Bulgarian
tobacco co-operatives to purchase 1,500,000 kUograms
(3,306,900 pounds) of Bulgarian tobacco of the croj) of
1932. The price attained by the Bulgarian tobacco
growers amounted to about 45 Leva i)er kilogram,
which is considered to be a satisfactory yield. The
total amount of almost 70,000,000 Leva involved in this
transaction will be paid out in Keichsmarks, which will
be utilized in the i>urchase of (lerman ])roducts for the
Bulgarian market. (American Consulate (leneral.)

"MANILA— The leaf tobacco market in Manda con-
tinued quiet during August. (Jeneral l)uying of 1934
crop connnenced at tiie end of August at conservative
prices. Exports of leaf, strips and scraps which are
still very weak, with shipments to Spanish Monopoly-
making up the greater part of the total, amounted to
817,90^ pounds, of which Australia took 4409 ])oun(ls,
China 4409 pounds, France 28,(;bO jiounds, Hongkong
24,251 pouiKls, North Atlantic Europe S3,775 ])ounds,
Spain 577,605 pounds, I^uguay 11,023 j.ounds, the
United States 72,752 ]K)unds, while the remainder was
scattered. Cigar exports to the United States in Au-
gust totaled 14,800,000 pieces. (American Trade Com-
missioner in Charge C. Grant Isaacs.)

CIGAR MERCHANDISING PLAN .

0 OBVIATE any misunderstanding of the pro-
visions of the Cigar Merchandising Plan on the
part of manufacturers and distributors, the
Tobacco Merchants Association has issued a
bulletin on the subject as follows: The *' cigar mer-
chandising plan'' which forms a part of the cigar
manufacturing, the Wholesale Dealers' and the Retail
Dealers' Codes, and which, upon ai)i)roval of these re-
spective Codes, was temporarily stayed, has now be-
come effective pursuant to an order issueil by the

N. R. A.

Particular attention is directed to paragraphs 1,
2 and 3 of said order, reading as follows:

**(1) Cigar manufacturers shall lib' retail i)rices,
discounts and credit terms with the Council foitliwith
and said prices, discounts and terms shall be published
and become effective immediately ui)on tiling.

*'(2) Jobbers and sub-job])ers shall iih' their dis-
counts and credit teims within fifteen days after the
date hereof and said discounts and credit terms shall
])e published and become effective inmiediately upon
filing.

"(3) The waiting periods of five and three days
contained in Aiticle VI, Section 1, and Schedule I,
Part (a). Section 1, and in Schedule I, Part (b). Sec-
tions 1 and 2, respectively, which were heretofore
stayed in the Executive Order approving the Code,
shall not become effective notwithstanding this order
terminating the stay of said cigar merchandising
plan.*'

14

SOME NOTES ON GRACIE'S VOICE

NXC)I'X(1^:MEXT that lUirns and Allen would
sinii' a "mvsterv" imndjer on each of their
CBS ])i(>gi'ams with Bobby Dolan's Orchestra
was received with some incredulity by their
friends. Hut since the matter has been brought up,
»ome feel that an ex])lanation is in order although
(Jeorge and (Jracie have authorized no statement. The
following is a bit of conjecture, conjectured by
Columbia's best tune detective.

It seems that duiing their recent tour of Europe,
Madame (Jraciosa Allensi, accom])anied by Signer
(liorgio Hurnsini (at the i)ianola), made two remark-
able discoveries. First of all, after three days of laryn-
gitis, Gracie found her voice. The next day, while rum-
maging in the cellar of the old Allen thumbtack factory
in Moscow-on-Volga — known familiarly to the natives
as "Die (lesellschaftAllenThund)TackenTurnverein"
— close the i)arentheses — (Jracie found a mouldy old
manuscript signed by her missing brother. It proved
to be the scoie for a colossal nine-act opera entitled
"Le Tramcar (jui Defaulter et Allez Boom" or "I
Passengieri." After unwra])i)ing her lunch to read
the overture Gracie decided to sing it on the WABC
Cohnnbia network (altlnmgh it still has to be cleared
by (piarantine officials).

"Here at last in 'Le Tramcar Qui Defaulter et
Allez Boom,'" writes (Iracie's missing brother in a
faltering hand, "is an a])])roi)riate vehicle for my
pister's missing voice. Oidy three notes are used
throughout the score — all on the lirst mortgage — al-
though, nnfortuiuitely for (Jracie, these are all the
same. Actually, you know, her vocal range is from
first to third base. In the oi)ening movement first one
hears the soft breathing of the motorman as 'le tram-
car' rolls conten.tedly along the Nevsky Prospekt. Dis-
tant cowbells — pianissimo — announce that all is well.
Suddenly one hears the rising indignation of *I
Passengieri' — muted bassoons in B flat — as 'le tram-
car' refuses to stop at Clark and First Streets. From
a lone jiiccolo massive chords, suggesting 'sturm und
drang,' sweep through the orchestra, while the lone
soi)rano voice of a lost soul, caught on the back plat-
form, rises in forlorn wails through the pianola's bril-
liant arpeggios."

"Personally," concl^es the composer, "I think
it V a lollapttiloosa."

REVISION OF MINIMUM CIGARETTE PRICE

ORDER APPROVED

Tlu' Xational Kecovery Administration has an-
nounced revision of its jnevious order establishing
minimum wholesale ])rices for cigarettes by reducing
the nuirk-up requirejl in transactions between jobbers
and sub-joV)bers.

Effect ive Sei)tember 24th, the sub-jobber may buy
;.t <»ne-half of 1 per cent, less than now permitted.

As originally approved, the order re<piired that
the jobber'^ minimum price to sub-jobbers be his net
purchase price, deducting all discounts, i)lus 2.1 per
(cnt. Tlie new order jiermits such sales at the net
pui<ha>e price plus 1.5 per cent.

This change was mad(», the XHA pointed out,
merely to jneserve existing legitimate trade discounts.
It will not ha%'e any etfect on the retail })rice of cigar-
ettes.

Thi Tobacco WorU

RETAIL GROUPS CO OPERATE

ATIONAL (JROUPS of retailers and whole-
salers in the tobacco, candy, drug and grocery
lields are working on a plan to co-ordinate and
consolidate the enforcement work in connection
with their various codes. Numerous conferences, with
William A. Holiingsworth, head of the tobacco retail-
ers, as chairman, were held, following which Siegfried
Ha it man, ])resident of the Xational Tobacco Council,
and Wheeler Sannnons, president of the Drug Institute
of America, talked the matter over with Leon Hender-
son, NBA Director of Research and Planning. A joint
trade and (Jovernment research into ])rice methods and
conditions in these branches of the letail trade was

projiosed.

Mr. Hart man gave a sup[)lementary outline of the
])lan in the following letter to Mi*. Henderson:

"Following the talk which Mr. Wheeler Sammons
and I had with you last Wednesday afternoon, a fur-
ther meeting has been had of the interested groups jind
they have re(piested me fonnally to urge your early
inauguration of a project for a broad fact-finding sur-
vey of retail distribution. It is their thought and de-
sire, if you a])prove, to co-operate actively with those
designated by you in the pre])aration of a project out-
line and after the scope and operative tasks involved
have been settled, to assist actively through the facili-
ties at their command in such branches or de])artments
of the actual work of asking the survey as may be

asrreed.

'*They believe that such a broad fact-finding sur-
vey, provided it is conducted under expert guidance
and with an intimate knowledge of all of the interrela-
tions growing out of the National Industrial Recovery
Act, will prove of value alike to the National Recovery
Administration and the retail distribution trades and
that onlv bv such a procedure can sound guidance be
obtained in'meeting the distinctive problems of distri-
bution. The groups who have authorized me to address
this letter to von are the following: , .

"Drug Institute of America, National Association
of Tobacco Distributors, Retail Tobacco Dealers of
America, Inc., Limited Price Variety Association, Inc.,
A. B. A. Specialty Co., National Food & Grocery Dis-
tributors, and Wholesale Confectioners Industry.

** Certain of these groups who contend that dis-
tinct conditions are existent in their respective
branches of the retail trade would of course reserve the
right to propose in the project outlined a special study
of specified subjects/*

CAMEL'S NEW PROGRAM

Walter O'Keefe and Annette Hanshaw will lead
the arrav of new talent presented by the (^iinel Cara-
van when it returns to the air Tuesday, October 2d

Glen Grav's (^aca Loma Orchestra, ieatnre of the
Caravan show last season, api)ears again with the
O'Keefe-IIanshaw combination.

The half -hour Caravan broadcast will go on the
air twice weekly— over an eighty-five-station hook-up
of the Columbi'a Broadcasting System— Tuesdays at
10 P. M., Eastern Time, clear across the country;
Thursdays at 0 P. M. in the East, 8 P. M Central Tinie^
and reaching the Rocky Mountains and the Pacific at
9 -30 and H :30 P. M. tlirough a rebroadcast. 1 he 1 liur^-
day show will also present Ted Husing, sports an-
nouncer, prominently " spotted ^^ in the show.

October i. 1934

REASONS FOR EXCHANGE.

Following are some of the reasons behind the es-
tablishment of the Tobacco Exchange, recently opened
in New York City :

1. Stabilization of tobacco prices, present and
future;

2. Opportunity for 'Pledging" (price insurance),
which is of great advantage to the grower, the middle-
man, the merchant, the banker, the exporter, the manu-
facturer ;

3. Assurance of an orderly market, governed en-
tirely by the law of supply and demand ;

4. Rigid adherence to the grades of tobacco, as
established by the United States Department of Agri-
culture ;

5. General reduction in the cost of marketing, with
the establishment of strategically located delivery
points, including New York and several places in the
tobacco belt ;

6. Provision of a market in which the manufac-
turer, exporter, jobber or ])anker may be relieved of
most inventory and carrying risks ;

7. Dissemination of accurate tobacco crop data,
statistics, weather reports.

In a letter to the new exchange, the U. S. Depart-
ment of Agriculture w^rote as follows: *'Tlie statement
is constantly made that tobacco cannot be graded. It
is rather significant, however, that the tobacco grading
service, conducted by this bureau, has expanded from
about 500,000 pound's to about 300,000,000 pounds in a
period of five years.

''The interest in tobacco grading is growing so
rapidly that it is reasonable to expect that, within a
few years, most of the annual production will be graded
prior to sale. We shall be glad to make the tobacco
grading facilities of this bureau available to your ex-
change in every practicable way.'^

MERCHANDISING PLAN IN EFFECT

HE National Recovery Administration on Sep-
tember 11th lifted the stay which has pre-
vented the merchandising provisions of the
Cigar Manufacturers' Code from becoming
operative and these provisions will be in full operation
within fifteen davs. C^igar manufacturers were re-
quested to file price lists forthwith with the National
Tobacco Council, Inc. As is well known in the trade,
the codes for the cigar manufacturers, wholesalers and
retailers contained merchandising regulations whereby
the manufacturers are pennitted to establish minimum
retail prices for their cigars, with specific discounts
allowable through each distribution step.

The National Tobacco Council, Inc., w as formed by
the trade to handle filed prices, discount lists and the
distribution of such lists through the industry. Fend-
in*' organization of the council, NRA had stayed the
open price provisions of the code, but the recent action
puts them into etTect. Jobbers and sub-jobbers were
given fifteen days to file their price lists.

JOHN P. SWEENEY GOES TO CHICAGO

John P. Sweeney, for the past eighteen months
manager of Bavuk (Mgars, Inc., Boston branch let t last
week for Cliicago, where he takes charge ot the cigar
department of Zolla Bros., diicago distributors tor
Bayuk Cigars, Inc.

15

CIGARS

P. LORILLARD GO'S
Quality

2 ^^'^ 5^

Cigars

Meeting the public's demand
for quality cigars
moderately priced

NEW

CURRENCY

CIGARS

2

for

5c

Our Other Popular 2 for 5<f Cigars

JAMES G. BLAINE • • POSTMASTER
LA FRAOSA • SARONA • WAR EAGLE

•^^M«M«M

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION <^f9iV>.
OF UNITED STATES '^^^JT^I^

JESSE A. BLOCH, NMiceling, W. Va „„,,,....,......,♦......•. -Pretident

JULIUS LICHTENSTEIN, New York, N. Y Vice-President

WILLIAM BEST. New York. N. Y Chairman Executive Committee

MAT. GEORGE VV. HILL. New York. N. Y Vice-President

GEORGE H. HUMMELL, New York. N. Y Vice-President

H. H. SHELTON. Washington. D. C X^^'n ''j *

WILLIAM T. REED. Richmond. Va Vice-President

HARVEY L. HIRST, Philadelphia, Pa Vice-President

ASA LEMLEIX. New York. N. Y •• ;■••••• : " -^^f^""!"

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director

Headquarters, 341 Madison Ave., New York City

RETAIL TOBACCO DEALERS OF AMERICA. INC.

WIU.IAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y. ....President

CLIFFORD N. DAWSON. Buffalo, N. Y Executive Vice President

JAMES C. THOMPSON, Chicago. Ill Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

iOHN H. DUYS. Kew York City -••Vr: •S'"**-^*"!
IILTON RANCK. Lancaster. Pa e*^*"] ^'"*^*"^"!

D. EMIL KLEIN. New York City Second Vice-President

LEE SAMUELS, New York City Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave., Newark, N. J ..........President

ALBERT FREEMAN. New York. N. Y o'^*"* y,'."S''"-^*"!

IRVEN M. MOSS, Trenton, N. J Second Vice-President

A. STERNBERG, Newark. N. J SecreUry

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE President

SAMUEL MAGID. 2001 N. Mervine St., Philadelphia. Pa SecreUry

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E. ASBURY DAVIS. Baltimore. Md. -•■•■•••■■••„•.> £!rif!rv

JOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y SecreUry

GEO. B. SCRAMBUNG, aeveland. Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

iOHN F BROWN • President
lERMAN H. YAFFE, 301 Fox Building. Philadelphia, Pa SecreUnr

l6

More O^iaker City News

DON'T MISS

One of the outstanding: events of the past fortnight
in this city was the consolidation of the H. & S. Stores
and the Marbern Stores, on September 17th. The con-
solidation is now doing business under the firm name
of Nevin Drug Company, wdth main offices and ware-
house located at 261 North Third Street, and operating
thirty- two cut-rate drug and patent medicine stores
throughout the city.

The consolidation, which is operated as a partner-
ship consisting of Bernard Weinberg, Morris Sobel,
Harry and Al. Sylk, w^as inaugurated with a dinner-
dance given in the banquet room of the Hotel Sylvania
on September 16th, at which the employees of the new
firm, their families and friends were not only served a
splendid dinner, but in addition treated to an excellent
bit of entertainment in the \vay of a floor show. Mrs.
Weinberg, mother of Mr. Weinberg, was the guest of
honor. There w^ere approximately one thousand guests
present.

The stores of course carry kindred items and
cigars, and tobacco products are featured as well. The
store at 50 South Second Street is one of the outstand-
ing stores in that neighborhood, being managed by
Miss Sellers, who it will be remembered carried off the
honors in the recent contest launched by Bayuk Cigars,
Inc., offering a prize for the person selling the greatest
quantity of their Prince Hamlet cigars during the
month of February. Miss Sellers reports that Prince
Hamlet continues to lead the league in the Class C mer-
chandise in her store, with Medalist and Eoyalist run-
ners-up.

The Garcia y Vega brand, product of the Garcia y
Vega factory in Tampa, and distributed by Yahn &
McDonnell, 617 Chestnut Street, is meeting with in-
creased demand in this territory, under the able guid-
ance of Benjamin Lumley, factory representative for
this section of the country.

The Don Sebastian brand, distributed by John
Wajrner & Sons, and manufactured by Arango y
Arango, Tampa, Fla., is enjoying a nice increase in
demand in this section.

Brisrgs Pipe Mixture, a P. Lorillard Co. product,
will be on the air beginning October 6th with a weekly
program of football chatter featuring Thornton Fisher,
famous sports w^riter and radio commentator. Scores
and comments on the day's games will be heard on this
broadcast every Saturday at 6:45 P. M. over a National
Broadcasting Co. hookup.

Thornton Fisher is a pioneer radio sports com-
mentator, having started his radio career more than
twelve years ago at station WEAF. As a w^riter and
cartoonist for the old New York Eveninn World, he
covered practically every important sporting event in
America and abroad and has known personally every
outstanding sports figure of the past generation. Since
manv pipe smokers will undoubtedly be encouraged to
try "Briggs" following these weekly broadcasts, now
would seem to be a good time for retailers to be sure
they have an ample stock of this quality Lorillard
product.

The Tobacco World

AND

RADIO'S SENSATIONAL LAUGH TfAM

WITH JOSEF BONIMES ORCHESTRA AND GUEST STARS

Don't miss thr snies fheyVe building for

PICK and PAT and BONIME'S ORCHESTRA are presenUd WMkly ov«r th* following stations:

Baltimore

Boston

Buffalo

Chicaso

CinciniMii

Clrvdaad

Denver

Dcs Moines

Detroit

Doluth

Hanfbrd

WFBR

WEEI

WBEN

VMAQ

WSAI

WTAM

KOA

WOC-WHO

WWI

WEBC

WTIC

Friday

Saturday

Friday

Friday

Friday

Friday

Monday

Friday

Friday

Tuesday

Friday

Kansas City
Los Anceles
Madison
Milwaukee
New York
Omaha
Philadelphia
Pinsburah
Portland. Me.
Portland, Ore.

WDAF

KFI

WIBA

WTMJ

WEAF

WOW

WFI-WLIT

WCAE

WCSH

KGW

Wednesday

Friday

Friday

Friday

Friday

Friday

Friday

Monday

Kf y«M UCAl EffMM PtSMMI UfTIMt

Providence

Richmond

St. Louis

St. Paul

Salt Lake City

San Francisco

Schenectady

Seattle

Spokane

Washington

Worcester

DILL'S BEST

WJAR

WRVA

KSD

KSTP

K.DYL

KPO

WGY

KIR

KHQ

WRC

WTAG

Friday

Tuesday

Friday

Monday

Tuesday

Friday

Friday

Tuesday

Tuesday

Friday

Friday

AND

Tobacco Prices and Cigarettes

Will Cigarettes Rise, or Will Manufacturers Cut Profits?

rSING PRICES for tobacco on the leaf markets
tliis year threaten to cut the profits on ciga-
rette buniness should the early trend be main-
tained for the entire crop. With a promised
reduction of 250,000,000 pounds in the flue-cured to-
bacco crop, it now appears unlikely that the trend to-
ward higher prices on this type of tobacco will be
halted. On hurley tobacco, while this year's crop should
be smaller than that of a year ago, there is a large
carry-over which should have a restraining influence on
any price buoyancy.

While it is too early yet to forecast what the aver-
age price will be either for flue-cured or hurley tobacco
this year, it ai)pears likely that the industry will charge
itself about $45,000,000 more for the tobacco used in
cigarettes than was the case last year, and that this
will amount to about 121^ cents per thousand additional
ewt The amount paid for the tobacco will show nmch
bigger rise, since the effect on cost of price advances is
averaged in with earlier years.

With the list price on cigarettes $6.10 a thousand,
such an increase seems almost negligible. However,
the net wholesale price is $5.38 per thousand and deduc-
tion of the $3 Government tax leaves $2.38 for the
manufacturer. Since the profits for the manufacturer
are generally estimated at around 40 cents per thou-
sand cigarettes, a 12V2-cent per thousand increase in
tobacco costs means a cut in profits of about 30 per cent.

For the makers of brands selling at a list price of
not less than $6.10 a thousand, to retail at 13 cents a
j)ackage or more, therefore, there is a profit margin
suflRcient to absorb this greater cost. For the makers
of 10-cent cigarettes, however, the margin is not there.
For at least one of these companies current volume in
its 10-cent line is known to be unprofitable, and the
cases with others is not apt to differ greatly.

In anticipation of this situation, makers of 10-cent
cigarettes last winter sought a graduated tax, which
would have provided 30 cents less tax for their ciga-
rettes. Congressional committees, however, did not
favor such action. How long the manufacturers will be
able to sell cigarettes at 10 cents for twenty will depend

October i, 1934

upon their leaf tobacco stocks. Without large supplies
of cheaper leaf, price rises on these brands seem inev-
itable. The situation for these companies is rendered
increasingly diflicult because the greatest price ad-
vances this year have taken place on the grades of
tobacco which these companies consume in making their
10-cent cigarettes.

Whether or not the major producers of ** stand-
ard" brands of cigarettes will be content to see their
profit margin reduced without attempting to recoup
through a higher price cannot now be determined. Last
year the major companies were party to a marketing
agreement binding them not to raise prices above $(i
per thousand price of January 3, 1933, except for any
additional costs by reason of NRA, AAA, etc. This
year the Government sought to renew the agreement,
but the makers suggested that the price for leaf would
be adequate witliout such agreement. Therefore, the
provision for no price increases expired with the agree-
ment, ending March 31st on flue-cured tobacco and
April 15th on hurley.

Thus far this year the price of flue-cured tobacco
has risen as much as 100 per cent, in some sections
where the markets have already opened. In Georgia
the price, which last year averaged over 12 cents, is
now around 19 cents; in South Carolina it rose from
12.75 cents last year to 25.01 cents this year, and in
eastern Carolinas it rose from somewhat over 16 cents
a pound to 27 cents this year.

Production of cigarettes in the first seven months
of 1934 was at the rate of 125,600,lX)O,OO0 for the full
year. At the same weight per thousand pounds as last
year's cigarettes are calculated to have contained, this
would involve the use of 365,496,0(X) pounds of tobacco.
A 50 per cent, increase in the cost of flue-cured tobacco
this year, and a hurley price about the same as last
vear would raise the averasre for the vear to about 21.50
cents per pound comi)ared with the 16.74 cents a pound
last year. The three-year average would go up to 16.80
cents a pound compared with 12.51 cents last year, since
the low^est year in the last decade is being dropped
from the average. — Wall Street Jourtial.

Establithed 1886

"BEST OF THE BEST"

^^^L^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco melCo^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
BMTUN. AKOMATIZEB. BOX FLAVOBS. PASTE SWEETENEBS

FRIES & BRO., 92 Reade Street, New York

Classified Column

The rate foi this column is three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c.) payable
strictly in advance.

juau

mjiiLiv.

tuii:uji3u£iL;

Kt«(T)«xir»(r)»irr«>irwirA»^irrii\irw^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while line.
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3-story and concreted basement building adjacent to P. R. R.
freight station in York, Pa. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. See A. Kauff-
man & Bro., York, Pa., fur inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love yotir ci-
gars." Specially those Havana blended, "Good to the laist Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
F^ Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, StVlro^^m

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916.

OCTOBER 15, 1934

Registration,

Search,

Transfer,

Duplicate Certificate,

(see Note A),
(see Note B),

$5.00
1.00
2.00
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 b«
made for every ten (10) additional titles necessarily reported.

TRANSFERS

GREATER MILWAUKEE:— 23,698 (U. S. Tobacco Journal). For
cigars, cigarettes atui cheroots. Registered April 18, 1904, by Muel-
ler & Son Co., Milwaukee, Wis. Transferred to Otto Voelker, Mil-
waukee, Wis., .August 29, 19.34.

SIR DAVID BREWSTER:— 17,139 (Trade-Mark Record). For ci-
gars. Registered (Jctober 14, 1896, by O. L. Schwencke, New York,
N. Y. Through mesne transfers acquired by Consolidated Litho.
Corp.. Brooklyn, N. Y., and re-transferred to Tarr Cigar & Tobacco
Co., Chicago. 111., September 7, 1934.

EL GROMO:— 23,474 (Trade-Mark Record). For cigars, cigarettes
and tobacco. Registered March 26, 1902, by Eniil Steflfens, New
YcH-k, N, Y, Transferred by Steflfens, Jones & Co., Inc., New
York, N. Y., successors to the original registrant, to Consolidated
Litho. Corp., Brooklyn, N, Y,, and re-transferred to the Federal
Cigar Co., Red Lion, Pa., September 8, 1934.

WALLICK HALL:— 46.134 (Tobacco Merchants Association). P'or
all tobacco products. Registered December 24, 1932, by .^aron Sul-
man, Brooklyn, N, Y. Transferred to Consolidated Litho. Corp.,
Brooklyn, N. Y., and re-transferred to M. Block, Brt>oklyn, N. Y.,
September 12, 1934.

MARY ARDEN:— 38,347 (I'nited Registration Bureau). For ci-
gars, cigarettes, cheroots and tobacco. Registered .September 24,
1913, by American Litho. Co,, New York, N. Y. Transferred by
Consolidated Litho. Corp. (who had taken over cigar label depart-
ment of the original registrant), to Federal Cigar Co^ Inc., Red
Lion, Pa., .September 13, 1934,

REGISTRATIONS

A. R. INC.:— 46,366. For cigars. August 22, 1934. Associated Re-
tailers, Inc., New York, N. Y.

LUIZ DE CAMOES:-^6,367. For cigars. September 17, 1934. J.
R. Gil, Bronx, N. Y.

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name.

Street No...

P. O-

JState„

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phila., Fa.
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION n!^°''^' ^rli

Chicago, 111.
LIMA Ohio Detroit, Mich.

A NatioiaWidc Service Wheeling, W. Va,

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST., PHILA., PA.

After all
jiothing satisfies like
good cigar

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

•member that RcgardlMS of Pr

THE BEST CIGARS

ABC PACKID m

WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

OCTOBER 15. 1934

No. 20

INCE it seemed to be pretty generally con-
ceded that price chiseling was at the root of
the troubles of retail tobacconists, the an-
nouncement that price control would be
scrapped, following the resignation of General John-
son, came as an unexpected shock to the trade. Later
news, to the effect that the first official act of the re-
organized NRA was to extend the present cigarette
l)rices to January 11, 1935, indicated that there was
no ground for fearing that all the good work done in
the industry in the formulation of the codes of fair
practice was futile. The immediate reaction to the
first announcement served to emphasize one of the
undesirable characteristics of this industry, namely, to
howl calamity at every opportunity. Among politi-
cians, it is expected that the '*ins'" will point with
pride and the '*outs" will view with alarm. That is
taken for granted, and certainly there have been many
evidences recently of these contrary proclivities. To a
certain extent, this same habit of mind pervades busi-
ness and industry. The proponents of any movement
see only its virtues, its oi)ponents see only its defects.
Hut it is rarely the case that either side goes as far in
its predictions of what will haijpen if a certain i)ro-
posed move is adopted or not, as so often happens in
the tobacco industry. Here it is never a matter of the
business sutTering somewhat. It is always a matter
of the business being wiped out altogether.

^^^^^^^ ^^^^^^^ ^^^^^^^

Cj3 CT3 Ct3

\fmg ^' <^'AN remember, not so long ago, the hulla-
\fM l^aloo about the proposed promotion campaign
for cigars. It was a swell idea, no doubt about
that. We were for it. We thought it was a
big mistake that the plan was not adopted. But we
never went so far as to join in the prediction that, if
the campaign was tabled, the cigar business would dis-
appear from the face of the earth. We knew that
people would continue to smoke cigars. And we knew,
too, that some cigar manufacturers would go ahead
with promotion campaigns of their own, even if there
was not a concerted movement participated in by all
the manufacturers, and that these wideawake Imsiness
men would profit from their campaigns to the tune of
shipments to distributors, sales to retailers and con-
sumers, activity of cash registers and money in the
bank. That is exactly what happened. Wo doirt need
to mention the names of the comj)anies that have been
doing very well, thank you, in spite of the "thumbs
down" on the industry's promotion program. The
irony of it all is that those companies were the very
ones who were listed as the first to pledge their co-
operation in the proposed plan.

X THP] same way we believe that price con-
trol is the root and foundation of any at-
tempt to clean up the abuses in the cigarette
business, abuses which made it impossible for
retailers, in many instances, to make any profit from
the sale of cigarettes. We think it would be a grave
niistake to eliminate price control from the merchandis-
ing provisions of the code regulating the sale of cigar-
ettes. Yet, instead of immediately jumping to the
conclusion that the elimination of price control would
throw every retailer out in the street, we believe that
the retailers themselves should take advantage of all
the time between now and January 11 to work out a
l)lan to obviate the return of the price-slashing abuse.
For the first time in the history of the industry, to-
bficco retailers are now organized. If the XIRA had
no other good effect than the organization of manu-
facturers, distributors and retailers, it would, bv that
act alone, come close to justifying its existence, cer-
tainly as far as the tobacco industry is concerned. It
seems to us that the retailers, instead of waiting until
there is another threat to take away from them the
boon of price control, should set about at once, through
their organization, to protect their interests by study-
ing to devise some plan whereby the cigarette would
not again be allowed to deteriorate into a loss leader,
attracting customers into grocery stores, clothing
stores, gasoline filling stations and wlmt have you.

CS3 Ct3 CjJ

OBACCO WORLD extends sincere sympathy
to Carl Avery Werner, editor of The' Tobacco
Leaf, upon the death of his father, Charles R.
Werner, in Watertown, N. Y., on Saturdav,
October 6. The elder Werner was also the grandfather
of Paul A. Werner, creator of Snowball mentholated
cigarettes, and the new Long blended cigarette.

CjJ C?3 Cj3

T GIVES us great pleasure to greet the mem-
bers of the Wholesale Tobacco Trade (Vie
Authority, recently named: Allan C. Davis,
Baltimore, Md.; Arthur M. Eisig, New Y'ork
C\{y; George B. Scrambling, Cleveland, O.; Charles
8. Flaks, Denver, Col. ; R. O. Downie, Memphis, Tenn. ;
Edmund C. Dearstyne, Albany, X. Y.; Joseph Kolodny,
secretary of the National Association of Tobacco Dis-
tributors, Jersey City, N. J.; and Herman Yaffee, an
attorney of Philadelphia, representing non-members
of the association.

r^ iPn ^S*^^^^9 ^9^^^^ A«****^??/1-L®^^^ " published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer;
Gerald B. Hankmi. Secretary Office, 236 Chestnut Street. Philadelphia. Pa. Issued on the 1st and 15th of each month. Subscriptions? avaH-
able only to thcwe engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter
December 22, 1909, at the Post Office, Philadelphia. Pa., under the Act of Uarch 3, 1879. ' ^ ^ *= ** »*=^°°" ""'^^ °»*" matter,

CIGARETTE PRICES CONTINUE

OIH'LAK brands of iM.i>arott('s will continno to
sell for 1.') conts a pac'kai»e or two for a (juar-
tor until January 11 by order of the N. K. A.'s
new governing- board.
That action on October 10 was the first by the Blue
Eaule rulers involvini»- the controversial (juestion of
l)rice-fixin,ii. It continued a }H)-day enieriicncy order
bv Iluiih S. Johnson, which otherwise^ would have ex-
pi red October 13.

The cigarette order followed a statement earlier
in the day, formally assuring- the bituminous coal in-
dustry that its price-fixinii- code still was in effect and
would not be chan^eil unless the industry was con-
sulted and .liiven a hearin.i;-. The coal statement and
the cii»arette order were reuai'ded as new evidences
that X. R. A. policy changes will be tiradual.

UNITED OWES 29 MILLION

[jOUR hundred and fifty-one claims, represent-
inir more than $2J),(MU),(nH), were filed yester-
day in the office of Irwin Kurtz, bankruptcy
referee, at 15 Park Row, against the United
ri.^ar Stores Company of America. The Irvinu" Trust
Comi)any, as trustee for the ('ii»ar Stores Realty Ilold-
iniis. Inc., ])rcscnted demands for amounts totaliiiii
rii9,2(K),(KK), the laruest filed by any sinule clainuuit.

The ])etiti()n for authority to formulate a reorj^an-
ization iJan, subject to the approval of the United
States District (Vmrt, has ]mt a new comi»lexi<m on the
proceedinus, still in the bankrui)tcy court. Referee
Kurtz is await inu: submission of the i)lan, i>endini»-
which a nieetini»- of creditors will l)e called.

Yesterday was the last day on whicli claims
airainst the com})any could be filed.

COMPLAINTS COMMITTEE APPROVED

The XRA has announced ajjproval of the mem-
bership and i)lan of ])rocedure for the fair trade i)rac-
tice committees of the retail tobacco trade, to consist
of four mend)ers to l)e ajJiKjintcd by Uode Authority.

PRICES AND DISCOUNTS FILED

ANUFAC^TURERS' price and discount re-
])orts have been filed with and recorded by
the National Tobacco Oouncil, Inc., at its offices
at 100 East 42d Street, New York C^ity, pur-
suant to the (^ij»ar Merchandisiny,- Plan as set forth
in Schedule 1 annexed to and made a part of the Oodes
of Fair ('om])etition for the Oi.i»ar Manufacturinj*; In-
dustrv, the Wholesale Tobacco Trade and the Retail
Tobacco Trade. The recorded ])rice and discount re-
ports are now o])en for your inspection. Copies of
these reports and of subseiiuent recordations will be
forwarded to you as soon as possi])le.

Siegfried F. II a it man is ])resident and counsel of
the National Tobacco Oouncil. The executive com-
mittee is comjjosed of Harvey L. Hirst, William A.
Hollingsworth and Joseph Kolodny.

Kolodny's Address at "Two-fer" Hearing

FLAMELESS FLUIDLESS LIGHTER

A fire without a flame has become an actuality in
the develoi)ment of the Fire Chief Uiiiarette Lii'htor.
The case is ])roduced in bakelite molded, which con-
trasts with the chromium plated scratching- device.
A sini;h' motion ])roduces a sjiark which turns to a
deej) red ulow. It is claimed that the Fire Chief li,i»hter
works as easilv and surclv in the wind as in a sheltere<l
room. It is snudl enough to fit conveniently in the vest
pocket or j)urse.

CAROLINIAN ON WAREHOUSE AUTHORITY

John T. Thorne, of Farmville, N. U., has been ap-
pointed Administration Member of the auction and
loose-leaf tobacco warehouse industry Code Authority.
He is a meml)er of the Tobacco Advisory Connnittee
for the Tobacco Section, Agricultural A«ljustment Ad-
ministration.

Members of the National Code Authority for the
Retail Tobacco Trade are s])cndinir their time in Wash-
ington neirotiatinjj: for a continuation of the Cij^^arctte
Order establishing minimum ])rices for ciirarettes.

Flue-Cured Crop in Manchuria

HF 1934 crop of American type fiue-curcd to-
l)acco in Manchuria is ])laced at 2,094,000
l)ounds from .'^)200 acres compared with
1,874,000 pounds from 2(MM) acres in VXVX ac
cordinjc to a report to the Bureau of A^nicultural
Economics, from Assistant A«rricultural Commissioner
F. J. Rossiter at Shanjrhai. The yield per acre was
low because of excessive rainfall. Manchuria ])roduces
al)out 50,000,000 jiounds of low i-rade native leaf an-
nually but relatively little Hue-cured tobacco. The
native leaf is used mainly for ])ipe smokiiiir whereas
flue-cured tobacco is used nuiinly in the manufactur*-
of ciuarettes, consumption of which has increased con
sideral)ly in the last two years. Annual re(piirements
of flue-cured leaf are estimated at about 33,000.000
])Ounds, of which less than 10 j»er cent, is ])roduced
locallv, the remainder beinu imjxirted from China and
from the Fnited States.

The Chinese (Joveinment has established a
monopoly with authority to promote the cultivation of
flue-cured tobacco in Manchuria. A lonj<-time proi»iam

of education, advice, encourairement and irovernmental
loans for seed has l)een adojited, the object beinj^ to
induce farmers to jrrow more flue-cured leaf. Officials
of the monopoly V)elieve tliat .Manchuria will be able
to sujjply a larj^e ])ro])ortion of her flue-cured retjuire-
ments in ten or fifteen years if irrowers use the rijL(ht
kind of seed and adopt modern cultural and curing
methods.

Althouuh the (iovernment may be successful in
ex]»andinu: ]>roduction of flue-cured leaf to replace most
of the present imports of that type from China, and
even some of the imports from the Cnited States, con-
siderable (plant ities of American flue-cured tobacco
will be needed in the manufacture of the better (juality
of ciirarettes, says Hossiter. Any laruc scale replace-
ment of American flue-cured leaf by the .Manchurian
product would be of considerable siu:nificance to Amer-
ican pro<lucers since China, indudinu: Manchuria, has
become the second most important forei<i:n nutrket for
our exports of this type of tobacco, and took on the
averaue 2S per cent, of our exi)orts in the live years
from 1929-1933.

Th€ Tobacco World

R. ADMINISTRATOR: 1 appear here today
for the purjmse of conveyin.^' and expi-essin<.»- to
you the opinion and sentiment — with respect
to the subject matter of this hearing — of a
very considerable number of members of the associa-
tion I represent, the National Association of Tobacco
Distributors.

At the outset, I wish it to be clearly understood
that, as an Association of Distributors or Jobbers, we
have always nuiintained and rigidly adhered to a policy
of non-interference in any problems or controversies,
which may be termed "purely manufacturers." We
believe, and still do believe, that as distributors or job-
bers, our function was and is solely the sales-promotion
and distribution to retail outlets of tobacco products
already manufactured by the nuinufacturer.

1 may say with some degree of assurance that a
great numy <listribulors never even knew nor were
they i)articularly interested to know the weight of
cigars. They do know, however, from i)ainful experi-
ence, that while in some territories a given brand of
cigars may enjoy a tremendous sale and become what
is connnonly known as ''a natural,** in another given
territory that very same cigar may not meet witli any
public favor whatsoever. This peculiar, though well-
known, reaction on the i)art of the consumer applies
equally to all tyjies of cigars irrespective of weight.

Frankly — the members of the numufacturers'
connnittee, which studied this pro))lem and now present
this plan as a solution, have my whole-hearted sym-
pathy. I know they have worked hard and diligeiitly.
I know they liave tried to approach this problem and
arrive at a solution from an unselfish, unbiased stand-
point.

I likewise know, however, that they are confronted
with a most intricate, complex situation — a situation
which, by far, supersedes any superficial solution inas
much as it again involves the interminable conflict be-
tween "human-labor" and the "machine."

Here we are confronted with the very lives an<l
subsistence of thousands of workers and their families.
Labor, in line with capital in this instance, has endeav-
ored to effectuate a solution. I know of the many
sleepless nights spent by Mr. Ira Ornburn on this ex-
tremely difficult problem. Perhaps, it is the best solu-
tion that any group of persons could formulate or
devise l)ut we must, Mr. Administrator, face some addi-
tional facts.

I have before me a rej)ort of the United States Bu-
reau of Internal Revenue showing withdrawals of reve-
nue stamps affixed to cigar boxes during the month of
August: Class A— 371,792,790 of a total (»f all ciirars
of 42r),4:)2,701, exclusive of 11, 354,442 imported from
Manila — about S.') per cent, of the total are Class A
cigais.

Of all these, T am told (T have not the exact (ig
ures) at least one-third or two for nickel cigars or
about one hundred twenty-tive million per month.
These cigars must be distributed and therefore each
box requires a fixed cost for distribution. Let us, now,
briefly, analyze the <listributors' prol)lem.

In the Middle West and South, the principal vol-
ume of many distributors consists of two for nickel
cigars. It, also, represents a fairly large |)ortion of
the citcar business of distributors in the Fast. Of
course the averaire person mav innocentlv ask, "whv

October 1$, 1934

should a distributor confine most of his efforts in the
cigar department to two for nickel cigars ?"

To that I will answer that the distributor does not
do so by choice since he does not control the economic
status of the consumer. He must, of necessity, attempt
to supply to the retailer that type of merchandise which
his market can absorb.

The distributor, at present, operates under a Code
of p'air Competition and has had to increase the wages
of his employees. He has been compelled to shorten
hours. He was required to add additional liel]).

If he is to be deprived of a fair return on his sales
of two for nickel cigars, which as I have stated, in some
cases constitute the princii)al volume of his cigar busi-
ness, it becomes increasingly difficult for him to main-
tain the high standard of wages and hours to which he
is committed under the Code of Fair Competition for
his Industry.

Among the recommendations submitted by the Ci-
gar Manufacturing Code Authority are the followinu':

First — that all manufacturers of cigars, stogies
and cheroots made to retail at two for nickel, shall com-
ply with all the i)rovisions of the Code for the (^igar
Manufacturing Industry.

This, I believe, applies mainly to the wage and
hour provisions. It is largely a nianufacturing f)rob-
lem and, as distributors, we do not feel called on here
to ex])ress an opinion concerning it.

Sccoud — that the weight of cigars, and cheroots
made to retail at two for nickel, shall be limited to and
shall not exceed 18 pounds per thousand.

As distributors, we cannot — in fairness to tlu'
manufacturing groups — express any definite opinion
regarding the size and weight of any i)roduct. We be-
lieve competition governs this phase of the business.
If consumers demand a large cigar for a given price
and the manufacturer produces a cigar in accordance
with that size, we distribute them. If, on the other
hand, a certain manufacturer feels that there is a
market for a small cigar for a given price and a dis-
tributor concurs in that view, he will distribute that
cigar through the retailer to the consumer.

Third — that cigars, stogies, and cheroots manu-
factured to retail at two for nickel shall be packed in
containers not less than 100 cigars in each container.

Even though this recommendation slightly touches
the merchandising field of the cigar manufacturing in-
dustry and the general subject is a matter in wliich
wholesale distributors are interested, there is no occa-
sion— at this time — to raise any acute issue on this
point. Xevertheless, as conditions may change, so as
to make such a provision undesirable, it would seem
inadvisable to make any rigid restrictions on this ])oint
in a code which can be changed only by formal amend-
ment.

Fourth — that the selling price to retailers of two
foi' nickel cigars shall not be less than ij^20 ])er thou-
sand and to jobbers, $18 per thousand.

This, Mr. Administrator, does concern us j)articu-
larly.

As T have ])reviously stated, T am fully cognizant
of the difficulty of the situation. I believe, however,
that under the ])iesent cost of wholesale distrilmtion
of cigars, which, according to statistics, averages from
10 to 14 pel- cent, on nationally advertised brands, the

(Continued on page 15)

MIA.

BAYUK BUSINESS BREVITIES

C. ROY, New England territorial manager,
dropped into the Ninth and Columbia Avenue
headquarters for a week-end visit and gave a
glowing account of the intensive demand for
Phillies way down East . . . Lex Ehrman, of Ehr-
man Bros., Horn & Co., distributors in San Francisco,
while in the East, paid the factory a visit and reported
that Bayuk brands are moving exceptionally well on
the coast . . . Schutz Herman Co., Evansville, Ind.,
has just completed a successful drive on Phillies in
that district, assisted by C. M. Bristow, Bayuk sales-
man ... Eli Witt Cigar Co., of Tampa, are prepar-
ing for a big winter season as distributors of Bayuk
cigars, which enjoy a big demand throughout Florida
. . . Jacob Unger, Bayuk salesman, is setting a fast
pace in promoting the sale of Bayuk cigars in connec-
tion with the Scranton Tobacco Co. for the Bingham-
ton, Albany, Schenectady district.

AT THIRD AND BROWN

N the date of that eventful seventh World Se-
ries game, we called at the office of Dave A.
Jenks, having failed to advert to the fact that
the energetic assistant sales manager of G.
H. P. hails from the town recently made famous by
^rike Cochrane. Of course, he wasn't there. Even
if he had been in to\^Ti, he would have been somewhere
listening to a broadcast of the game. But he was out
of town, and not expected back until Monday. The
girl at the information desk didn't know whether he
was in Detroit, or somewhere else. She just knew he
was out of the city. The burning question could hav('
been settled with one word from Frank P. Will, exec-
utive vice-president, but he also was out of town.
Some of these Philadelphians really thought the win-
ning of the pennant by the Tigers was a hometown
victory. Anyways, the plant was busy turning out
Ftl Productos and La Azoras, the sales department was
busy acknowledging orders, and the delivery depart-
ment was busy shipping 'em out.

John Flanagan, manager of the M. .1. Dalton stand
at 617 Chestnut Street, is featuring Optimo, Marcello,
Corona, Henry Clay, and Sano products in his amph*
window space this week. These products all enjoy a

good steady demand here.

Trade Notes

Mr. Sommerfeld, of the F. W. Sommerfeld Cigar
Co., Miami, Fla., was a visitor here last week.

The Royalist factory, North Second Street, re-
ports business steadily showing an increase on this
popular brand.

Sam Adles, of Villazon Co., was m town last week
visiting retailers and jobbers, and was highly pleased
with the increased demand for Ms brand.

John Wagner & Sons report a definite increase in
demand for imported Havana cigars since the advent
of the recent price reduction, which amounts to 25 per
cent, in some sizes, to the consumer.

Barton Lemlein, of M. Sachs & Co., stopped over
in Philadelphia for a brief visit, enroute to western
territory in the interest of his brands. He was much
encouraged bv better business conditions.

Ben Lumley, representing Garcia y Vega, distrib-
uted by Yahn & McDonnell, is in northern New Jersey
promoting the sale and distribution of his brand with
u:ood results.

Frank Florio, who manufactures the Philadel-
l)hia Leader, at 1418 South Ninth Street, is proudly
telling his friends what a battle he had last week on
the beach above Ocean City, N. J., when he landed a
sixty-nine pound drum fish. Mr. F'lorio now feels
that he is in the running for the annual prize put up
by one of the prominent sporting goods stores here.

Yahn & McDonnell, distributors, report visits
from Mannie Perez, one of the best-liked salesmen in
the Industry, who was on his way west promoting the
sale of his Redencion. Mannie reports business im-
jjroving nicely. Another visitor was Otto Schneider,
of Corral Wodiska y Ca., manufacturers of the Bering.
This brand has an excellent call here.

Tk0 Tobacco World

RAILROAD mSTORY entered

a new phase as the Burling-
ton's "Zephyr" flashed across
the Great Plains from Denver
to Chicago— 1015 miles in
785 minutes— to set a whole
flock of new records! Jack
Ford was at the throttle.

A PLEASURE that drives
away fatigue and listlessness!

SPOITSWOMAN PILOT. Mrs. Cecil

Kenyon says: ** Morning, noon and
night I can smoke Camels steadily —
without a touch of upset nerves."

Jack Ford, Burlington engineer, says:
"When the '2^phyr' roiled to a stop
at Chicago, I'd been through a lot of
excitement and strain and felt pretty
much used up. But a Camel quickly
gave me a 'lift' and I felt O.K.

"Most engineers prefer Camels. And
Camels help to increase their energy
when they feel worn out. I've smoked
a lot of Camels in my time, and that
goes for me — all the way."

Everyone is subject to strain —

whether physical, mental, or emotional.
So it's important to know that Camels
do release your stored-up energy.

The findings of a famous scientific
laboratory confirm Camel's "energiz-
ing effect." So begin today to enjoy
Camels often! For the costlier tobaccos
in Camels never afFea the nerves.

LEAF-TOBACCO EXPERTS AGREE:

>fr»wfi— r, Wert Expcmiv* Tobaccos
—TartdriiaMlDomwtfc—tkM any sthM-popiriar brand."

SECinAIY. Elizabeth Harbcn: "I am
careful in my choice of cigarettes.
I prefer Camels. They don't make
my nerves jumpy."

TUNE IN I CAMEL CARA VAN with Clmn Cray's Cata Loma Orchmatra,
Waltmr O'Kmmfa. Annmttm Hanahaw, othmr hmadlinmra. TUESDAY,
top. M.. E.S.T.-9 P.M.. C.S.T.-aP. M.. M.S.T.—7 P. M.. P.S.T.
THURSDAY 9 P.M., E.S.T.-8 P.M.. C.S.T.-9:30 P.M.. M.S.T.
-8:30 P. M.. P.S. T.. opmr WABC-Coiambia Network.

CameFs Costlier

Tobaccos never get

on your Nerves!

R i. Rajraoltiii
Tobaeco Company

October 15, 1934

Cigar Industry's Future in Tampa

A Radio Address from WDAE

By W. T. MORGAN

rp

X order to adequately discuss the future of the
cigar industry of Tampa it is essential to delve
into the past histoiy and lay before you the
reason whv the Ciyar Industry came to
ram])a. It is evident that there must have been a
fundamental reason — loi>ically so, and here it is:

In the earlv 80 's the center of the Clear Havana
Cisrar Manufacturinu: Industrv was located at Kev
West. The reason was obvious. Most of the tobacco
used was brought from Cuba, and with Key AVest but
ninety miles from the center of production that was
the jiractical point. Added to this was the fact that
as Years went bv the Cuban cii»:armaker, an artist if
there ever was one, drifted to Key West, and thus we
see that this island citv had to otTer the two essentials
necessary, that is, nearness to source of su])})ly for raw
nuiterials and adequate and ami)le lalmr. Time went
on, and history tells us that labor became dissatisfied;
fretpient strikes; demands for various additional labor
facilities which increased labor costs, plus demands for
increases in wages placed additional ])urdens on the
manufacturer until the i)oint was reached where the
manufacturer could no longer profitably produce his
clear Habana cigars at Key West and so he began to
look for other phices at which to locate.

The climate of Florida was and still is a deter-
mining factor in the production of cigars, and so the
numufacturer sought some other location within the
State. Tampa oiTered the same climate, ample labor,
and a point not too distant from Cuba.

AVith the advent of the K. Martinez Ybor and the
Sanchez & Haya i)lants to Tampa, the industry ac-
tually began. Gradually other factories located here,
until the center of the Clear Havana Industrv was
moved from Kev West to Tamiia. It was onlv after
years of concerted effort that the name of Tampa be-
gan to assume a i)lace in the markets of the country
as the rightful successor to Key West in this field, for
up to this time the name of Key West and Clear Ha-
vana cigars were synonymous. The name of Tampa
grew and graduallv trans] slanted the name of Kev
West.

In the early years of 1900 and the following dec-
ade a transition took place: Shade Grown and
Wrapped cigars began to show their comj)etition with
the products of the Tanq)a market to a nuirked de-
gree. By this we mean cigars manufactured with a
Connecticut wrapper and either domestic tobacco or
Cuban tobacco as a filler. Vor a nundjer of years prior
to this time this particular type of cigar had been on
the market, of course, but was confined largely to the
cheaper grades of merchandise. At this time — that is
to say, about 1910 to 19r5 — the shade wrapped cigar
began to encroach on the territories heretofore con-
fined largely to the clear Havana ty])e of cigar, and
with increased success. The Tampa manufacturers
found in their midst factories that were producing
higher priced cigars in direct competition with their
clear Havana brands, and their thoughts turned to the
possibility of doing likewise. With the outbreak of
the World War, beginning in 1914 and even for several

vears after its cessation, the cigar industrv, not onlv
of Tam])a but of the United States as a whole, was in
a dormant state. The cigar smoker became less ex-
acting and willing to take any cigar ])rovided it suited
his taste. The returned soldier had not been, in the
main, ])rivileged, nor was he al)le to secure and smoke
cigars. The years of the war were likewise resj)on-
sible for his being weaned away from cigars and be-
coming more accustomed to the shorter, more easilv
secured, smoke, in the form of a cigarette.

It can be safely said that the descending sun of
the cigar industry dated from the World War and its
termination. During the period of the World War a
large number of cigar smokers either died or were
killed, an eciually large mnnber turned to cigarettes,
and so began its decline.

Like a comatose patient there followed a short ])e-
riod of rejuvenation from 1920 to 1927. During these
vears the world as a whole was actuallv in its hev-dav.
Money was free and encouraged the better things of
life. The cigar smoker leacted to this ])eriod and for
a while the Industry was prosperous. It must be re-
mend)ered that there were comparatively few, if any,
new cigar smokers ordained during this time. The
increase in consumption and calibre was largely due
to the effervescence and affluence of the same cigar
smoker. Then entered the period of the so-called de-
])ression. Cigars of necessity fell within the luxury
class, and therefore one of the first items t(» be cur-
tailed, and result ingly the cigar manufacturer was one
of the first to feel the effects. The consumer hereto-
fore accustomed to paying 25 cents or more for his
cigar, drojjped to the next lower class. As this con-
dition continued the saute smoker gradually drojiped
to still a lower class, until today the production of the
entire United States has fallen to a level wherein 8')
|)er cent, of the production of over a half billion cigars
jK'r year is now within class A, or, in other words,
those retailing for 5 cents or less. Naturally, Tampa
manufacturers were not spared. Heretofore the five-
cent cigar was a by-product of the higiier classes, and
only jjroduced here to take care of these by-])roducts.
As conditions changed it became evident to the Tampa
manufacturer that the five-cent cigar would, of neces-
sity, no longer be a by-product but in many cases the
major portion of the factory's production. This is
noted particularly in the monthly reports of the De-
partment of Internal Revenue, wherein an average
monthly jiroduction in Tampa of 2r),(K)0,(KM) cigars
shows 50 per cent, or more falling within the five cents
or less class.

Xow for a moment let us look into the problem
from the standpoint of labor. During the period when
practically the entire production of Tanipa was in the
iiigher brackets the average weekly salary of the cig^ar-
maker was approximately ^2^}. Today this average
has dropped to an average of slightly less than ^If). It
must be realized that the cigarmaker of Tanipa is un-
like any other cigarmaker in the worhl. He cannot be
classed in the same category as any factory laborer.
Due to years of experience and in many cases being
a descendant of several generations of cigarniakers,

The Tobacco World

lo me a ciga-
rette is the best smoke.
It's a short smoke...
and then again it's
milder.

"I notice that you
smoke Chesterfields
also. I like them very
much."

V HAD A BERTH in the ninth
sleeper. It was a heavy train and a cold
night — snowing — and I thought about
the man with his hand on the throttle.
J admire and req>ect those men,"

• 1M4. Lmcbtt * Mysm Tomoco Go.

October is, 1934

he is a veritable artist. It must also be borne in mind
that the reputation of Tampa was earned, and still
continued so, not only due to the excellence of work-
manship and nuiteriais used but directly based on the
the fact that the old type of Spanish hand work has
been, and still is, used.

Todav wo iind the ci carmaker who had been em-

ft Cj

ployed on shapes and sizes that retailed for 25 cents
now forced to work on the live-cent class. It is and
would be imi)ossible to chan.u:e habits formed durint::
years of work, and so the cigarniaker of today work-
ing on the five-cent cigar is producing workmanship
which he had heretofore used on the 25-cent cigar. The
results are in a measure encouraging. It can truth-
fully be said that the five-cent cigar produced in
Tampa today is certainly the equivalent, if not the
superior, of any 10-cent or better cigar produced in
any part of the world. Were it not for this, it is more
than likely that Tampa production would by this time
have fallen to such a level that the cigar industry of
Tami)a would in all likelihood have been out of exist-
ence by now.

The competition of Tamj)a, in so far as the cigar
industrv is concerned, is extremelv keen. In northern
markets the cigar produced is, in the main, by machine,
of domestic tobacco, and a nuich larger cigar than that
])roduced here. Tampa counters with hand method of
production which really is tailored work, expert work-
manship and climatic conditions ideally suited for this
work, but one additional factor enters into the competi-
tive field, and that is the distance from the consuming
centers. These centers in the main are located in New
York, Chicago, Kansas City and the Pacific Coast. A
comparatively small amount of Tampa's production is
consumed south of Richmond, Va., and east of the
Mississippi. This means long freight hauls at rates
that certainly leave a very, narrow margin of profit
to the manufacturer. Then, too, a factor that has not
aided the Tampa manufacturer is the introduction of
new methods of manufacture in the northern markets
that are not entirelv machine work and still are not
altogether hand work. Regardless of these points, a
determining factor responsible for the loss of produc-
tion has been the more or less rapid dying off of the
older, inveterate cigar smoker. With the so-called gen-
tler sex i)re-empting the prerogative of her sterner
mate and taking to cigarettes, her younger consort
turned likewise, and so we find comparatively few of
the newer generation smoking cigars.

What the Future Holds in Store for Tampa and

Its Cigar Industry is indeed difficult to determine.
With the return to normal economic conditions, the
supposition is that the curve of the graph will swing
upward again for the same causes that were respon-
sible for their downward trend. It is almost accepted
as an axiom that at no time in the future will produc-
tion of cigars within the higher brackets ever return
to those levels of 1925-6-7, and that the entire output
of Tampa will be confined largely to those cigars fall-
ing within the range of five cents to three for fifty
cents, with the preponderance confined to the five-cent,
ten-cent, and two-for-25 cents classes. Even under
these conditions the outlook is far from being as dark
as it may seem at this particular moment, for with
increased consumption and volume production in these
classes, the increase ^vi\\ be reflected in more money to
be found within the pay envelope of the worker and
therefore greater purchasing power, which, of course,
would be confined in the main to this city. An increase
of but 10 per cent, per annum in the production of the
cigars within the higher brackets would mean an an-
nual increase of approximatelv $750,000 in added pay-
roll.

The stupendous sum of $75,O()0,()00 is invested in
the Tampa cigar industry, which in spite of present
economic conditions, still remains in the industry. The
j)ersons gainfully employed within the industry under
normal conditions represents some 13,500 workers.
Taking the normal family to consist of four persons,
we find that o%^er half the population of the city of
Tampa is more or less directly dependent on this one
industry. Likewise, the normal payroll of about one
and one-quarter million dollars per month, or over
thirteen million dollars per year, is certainly a strong
factor in the general makeuj) of the city.

A great deal, of wliatever the future holds in
store for the cigar industry, depends on the trend of
the buying public —

The introduction of Tampa-made cigars into new
domestic markets.

Direct campaigns in foreign markets.

Adequate, sincere, truthful advertisinjr.

The close and whole-hearted co-operation, which
has not been found wanting to date, of the producer.

With the above-mentioned factors given full cog-
nizance, it is more than likelv that the Industrv will
survive and flourish, always dei)endent upon the
greatest and most important item of all, namely, the
whole-hearted, sincere and comi)lete assistance and co-
operation of the people of Tampa.

Axton-FisherAdvances$30,000to Retailers

The Axton Fisher Company of Louisville have ad-
vanced $30,0(K) to the temporary fund underwriting
the expenses of the National Code Authority for the
Retail Tobacco Trade. The brands manufactured by
this company are:

Cigarettes: Clown, Spud, Twenty Grand.
Plug tobacco: Forked Deer.
Cigarette tobacco : Show Boat, Himyar.
Smoking tobacco: Old Hill Side, Old Loyalty,
Forked Deer, Fairway, Oklahoma.

Scrap tobacco: Wage Scale, Eight Hour Union.
Twists: White Mule, Booster, Axtons Natural

10

Leaf, Silver Tip, Old Time, Turkey, Rough and Ready,
Pride of Dixie, Old Paduke.

Several retail dealers throughout the country are
nuiking voluntary advances to the expenses of their
National Code Authority.

The National Code Authority has a plan of collec-
tion and assessment before the Administration for
approval. As it is necessary to circulate any plan of
this kind through all the advisory boards, it is not
expected the plan will be api)roved for at least four
or five w-eeks. In the interim, the Code Authority must
have iinancial support and is calling upon all members
of the trade to make voluntary advances.

The Tobacco World

Cigars are the
„,0Bl pleasurable
gad economical
form of smoking.

BAYUK BULLETIN

wf DOOM nun

VOLUME n.

OCTOBER 15, 1934

NUMBER 19

PHULOFAX

(Tlie Retailer^ s Friend)

SAYS

F. R. C. sends Phil this
worthy stunt: "I have a
customer who is a tough
nut ... he and I have
been getting along like
two strange bull-dogs . . .
He is a nut on this Gold
Standard subject . . . ran across a
little t)ook that treats of this subject
very thoroughly ... I bought it for
10c and gave it to my tough nut cus-
tomer . . . say, now he's my pal."
Thataboy, F. R. C. — more ways to get
under the skin of a customer than
sticking him with a pin in the seat of
his pants.

The other day, a jobber related to
your humble columnist that he had to
let go one of his men on the sales
force. In his friendly talk at the part-
ing of the ways, the man told the
jobber that he "never did like the job
of selling" and yet had worked at it
four years. Four years wasted . . .
gad, folks, if we don't like, yes LOVE
our jv)b, we'll never make a success
of our job.

He's a "factory salesman" . . . cov-
ers a big territory . . . doesn't want
the key dealers to forget him . . .
rather, he wants to keep remembered
in his absence . . . sometimes doesn't
jee thorn for three or four months but
he IH)ES keep in touch with them by
sending them now and then a souvenir
postal card from the town he is work-
in jf .. . When he contacts them again,
how gladly they welcome him. This
fellow's initials are B. VV. B. Bet a
kA of you retailers know who he is!

This year Christmas Day falls on
December 25th . . . December 25th is
on the Calendar this year same as
other years and Christmas Spirit is
poinjr to be in the hearts of all the
folks this year just as in former years.
CIGARS ARE THE MOST ECO-
NOMICAL GIFT THAT CAN BE
PURCHASED— FOR HIM!

How many Chrisitnas Cigars should
a johber or a retailer buy this year?
Well, with casual efforts, they can
kII so manv. And with real eflTorts,
they can sell so many more . . . why
not roal efforts and then BUY what
you have confidence in your ABILITY
TO SELL,

C. M. L. writes this in on a postal
fard (hist as gratefully received as if
^ a Tiffany letter paper) — "I'm a
jobber . . . have a Suggestion Box
for my salesmen to drop in their ideas
on hr»w to increase our business . . .
you'd be surprised at how many good
thoutrhts I receive." Oh, no, Phil
wouldn't be surprised and says that
the idea is just as GOOD as it is OLD

• maybe, BETTER in these days
when thr^ or four heads are better
Jnan one. No one is ever too old to

(7i^^^

D.aL

BAYUK CIGARS INC,

^ Jkmm 0i§mn timm 1997

MR. DEALER! TWO OF YOUR BEST

FRIENDS ARE ON THE WAY

And it's not too soon to think about
how you are going to welcome them.
Lots of boxes of cigars will be sold
for Thanksgiving — still more for

Christmas. And most of them will be
sold by the dealers who plan their
selling campaigns well aheiul — and go
through uHth them.

TWO STORIES WITH

A SINGLE MORAL

1. Can a Scdesman be a Good
Collector?

Last month a sales force in
one of the large Eastern cities
put on a drive to speed up col-
lections. At the end of the
month, one salesman, C. F. Beck-
ermeyer, showed a perfect score
— 512 accounts, all of them ac-
tive, and not a single one delin-
quent.

Mr. Beckermeyer didn't have
to rush around the last week
of the month on a frantic
clean-up campai^, either. He
spent that final week in rounding
up 191 orders.

A worthy runner-up in the
same drive was W. Kaesshaefer.
Mr. Kaesshaefer*s delinquent ac-
counts were .097'^ of his total
business. He failed to make a
perfect score only because one
of his customers, a Frenchman,
refused to settle up. This cus-
tomer's alibi was that the PYench
Government had refused to pay
its debt to the United States,
and as forty million Frenchmen
couldn't be wrong, he wasn't
paying his debts either.

The moral of this story, gen-
Uemen, is: IT CAN BE DONE!

2. The^lSO'' Oub

Recently, the salesmen of a
leading New England jobber or-
ganized a club. It was to be
quite an exclusive club, with a
membership confined to those
averaging at least 130 sales a
week. Most of them were aver-
aging about 100 per week at the
time.

We are happy to state that the
club did not preserve its exclu-
sive character very long. By the
end of the first week every last
member of the sales force had
made the club by bringing in at
least 130 scalps.

As it is a secret organization,
we can give only the initials of
the high scorer and the two run-
ners-up who tied for second
place. They are F. J. G., E. J. D.
and C. A., respectively.

The moral of this story, gen-
tlemen, is likewise:

IT CAN BE DONE !
Right you are, Leo!

"What we need today in business is
more men who do things and fewer
men who explain why they don't do
things"— Leo Tighe.

WHAT DOES THE
WORD "CIGAR" MEAN

Believe it or not, it originally meant
"cicada." And if you don't quite know
what a cicada is, it's a sort of katydid
thing that sits in a tree and makes a
noise like — a katydid.

It's a long journey from katydids
to cigars but here's how it happened.
The Central American Indians who
originally taught the Spaniards to
roll cigars, called the finished prod-
uct "cicada" (or the Indian equiva-
lent) because of its cicada-like shape.
The Spanish word for "cicada" is
"cigarra." When the word was im-
ported into English, they dropped the
extra "ra" — to save customs duty
possibly. And now let's all light cigars
in blessed memory of those Indians
who invented them. If ever there were
any good Indians they were that same.

"GOOD MORNING,

MR. PRESIDENT"

Excuse it, please. Our mistake!
This is not Mr. Roosevelt, but R. W.
Baylies, of Rochester, N. Y., who sells
cigars for Bayuk. But the resemblance
IS remarkable, isn't it? R. W. is con-
tinually being kidded about it, and
since March 4, 1933, the name
"Frank" has been conferred upon him
by friends and acquaintances. But
Mr. Baylies's resemblance to the oc-
cupant of the White House is not
merely facial. Like his famous proto-
type he is a hard worker and believes
in action. A mighty enviable sales
record is the result.

"ALEX SMART"
STILL GOING STRONG

"Memoirs of Alex Smart," which
originally appeared as a serial in the
Bayuk Bulletin and was later issued
in book form, is still going strong.

Evidently the gocndnatured fun,
which the author had at the expense
of his fellow salesmen — and cigar
salesmen in particular — struck a re-
sponsive chord. At any rate it is tak-
ing a lot of books to supply the
demand.

BAYUK BmANDS BUILD BUSINESS

'Bayuk Phillies'

(BAYUK PHILADELPHIA PUffECTO)

Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

Conditions in German Market

HE Govoriimeiit recfiilatioiis of imports of to-
bacco into Germany liavo now been announced.
On September 1, 1934, the authorities made it
known that restrictions on the importation of
certain raw materials would likewise apply to tobacco
and tobacco products. The Ministry of PJconomics has
established a Control Board for tobacco, which will
have its seat in Bremen; one of the Senators (Otto
Bernhard, who was active in the tobacco business be-
fore becoming- Senator) having been appointed Reichs-
commissioner for this Board.

As reported by American Consul W. A. Leonard
and made public by the Tobacco Division, Department
of Commerce, future prospects depend largely upon the
course to be followed by the Tobacco Board. If ex-
change restrictions limit considerably the importation
of tobacco, it will obviously be reduced, as compared
with normal shipments. This move is taken to control
and restrict the importations of raw tobacco and to-
bacco products to conform with the Reichsbank's pol-
icy of allotting foreign exchange due to the small
amount of foreign exchange available in Germany.

Inasmuch as foreign exchange is required for the
purchase of American tobacco, this new regulation will
make it impossible for local merchants and tobacco
manufacturers to buy tobacco in the interval of the
new Tobacco Board having started o])e rations. It is
stated that one of the first actions of the new Board
will be to appraise present stocks of raw tobacco held
by imj^orters, dealers and manufacturers. It is re-
ported that the restrictions pertaining to the purchase
and importation of tobac<»o, for use in Germany, will
enable only the fulfillment of urgent needs. This new
regulation does not aflfect transit business or Oriental
tobacco originating in countries with which the Reichs-
bank has a clearing agreement.

American tobacco imports into Bremen during the
month of August 1934 amounted to l,29r),2r)() pounds,
according to preliminar}' statistics. Tlie imports dur-
ing August were about double those of July, the im-
ports during July having been 660,440 pounds. Amer-
ican tobacco imports into Bremen during August 1933
totaled 752,148 pounds, or approximately 72 per cent,
less than August of this year. Imports consisted of
Kentucky, 353 hogsheads, Virginia 594, ^^larvland S,
Burley 13, Ohio 10, Seedleaf 61 cases, and Stems 217
metric tons. Although the imports into Germany were
relatively heavy in August, 1934, those imports w^ere
chiefly deliveries on old contracts, and hence did not
enter into the market conditions.

Activity in the Bremen market for American to-
bacco during the month of August, 1934, contmued to
be quiet, owing to the well-known foreign exchange
diflBculties. Transactions effected during the month of
August were small and constituted largely purchases
by manufacturers in other European countries. There
are practically no stocks of American tobacco at
Bremen.

The market for bright Virginia tobacco during
August is reported to have been quiet. Local im
porters report that there are practically no stocks of
bright Virginia tobacco available locally, and that the
shipments during August had constituted largely de-
liveries on former contracts and that unsold arrivals
were disposed of to other European countries. It is

12

stated that prices at the opening of the bright Vir-
ginia tobacco market in the United States for connnon
and medium grades, the most used in Germany, had
almost trebled, and that for this reason business with
Geimany would probably be small.

Purchases of Dark Virginia by Gennan manufac-
turers are reported to have been small. However, local
importers report that sales to other European mono])o-
lies had been satisfactory. It is stated that the first
shipments of the 1933 crop amved during August.
The tobacco is said to have light body and to l)e suit-
able for cutting purposes. There were practically no
transactions in Dark Kentucky between importers' and
(Jerman manufacturers. Importers report that the
quantities sold had been purchases by other European
manufacturers. The market for Burley, Marvland,
and Ohio continued to be quiet. Local importers state
that only small quantities had been disposed of to
other European countries.

The market for One Sucker and Green River to-
bacco show^ed no improvement and no transactions are
reported to have been effected. Shipments of Seed-
leaf continued to ])e small. Transactions were largely
restricted to local stocks, of which 105 cnses are re-
ported to have been sold. There was a somewhat
greater activity in American tobacco stems when com-
pared with the immediate preceding month of July.

During the first eight months of 1934, there was a
considerable increase in the imports of American to-
bacco into the Bremen market, as compared with the
corres])onding period of 1933. Preliminan- statistics
indicate that imports of American tobacco during the
first eight months of 1934 amounted to 14,862,562
pounds, as compared with 8,550,716 pounds during the
corresponding period a year ago, thus showing an in-
crease of 6,311,846 ix)unds, or approximately 74 per
cent.

Re-exiK)rts of American tobacco from Bremen dur-
ing the month of August, 1934, showed an increase
when compared with the corresponding month of 1933.
Statistics compiled by the Bremen Statistical Bureau
show that the quantities of American tobacco t^-
exported from Bremen during the month of Augiist,
1934, were as follows: Kentucky, 154 hogsheads, 237,-
160 pounds: Virginia, 233 hogsheads, 281,930 |>onnds;
Maryland, 3 hogsheads, 2310 pounds; Burley, 13 hogs-
heads, 15,730 pounds; Ohio, 10 hogsheads, 12,100
pounds; a t-otal of 413 hogsheads, 549,230.

S. CLAY WILLIAMS HEADS NRA BOARD

OLLOAVIXG Ills appointment by President
Roosevelt as a member of the new National
Industrial Recovery Board and his election as
chairman of this board, S. Clay Williams has
regretfully resigned as a member and chairman of the
Cigarette and Tobacco Manufacturers' Code Com-
mittee, declaring that this resignation was, of course,
inevitable by reason of his appointment to the new^
NRA board.

Mr. W. W. Flowers, a vice-president of the Liggett
& Myers Tobacco Com|)any, has succeeded Mr. Wil
Hams as chairman of the Cigarette and Tobacco Manu-
facturers' Code Connnittee by unanimous choice of
the members of the committee.'

Th€ Tobacco World

THERE MUST BE A REASON FOR THE
SPECTACULAR, AND GROWING, SUCCESS

OF KODLS. There is— four of them. The
public likes the blend; they're mildly
mentholated. The public likes the cork
tips. The public enjoys the advertising.
And the public likes the coupons packed
with KQOLS that are good for a choice of
nationally-advertised merchandise.

Stock KCDLS. They're a hot-selling,
cool-smoking favorite with plenty of
profit for you.

WINNERS . . . eVIRYONE/

Brown & Williamson products are designed to bring
you the m<»t profit in all lines and prices. Are you get-
ting your share of profit from these live selling items:
Kool, the largest sellmg IScent mentholated cigarette:

October 75, /yj^

Raleigh, now selling at the price of ordinary cigarettes;
Wings, the popular quality 10-cent cigarette; Sir
Walter Raleigh Smoking Tobacco, 15 cents and famous
for its mildness; Target, a genuine blended cigarette

tobacco for 10 cents; Dial Smoking Tobacco, m
smoother blend of Burleys for a dime — full U4 o«. to
tin: Bugler, a blended cigarette tobacco for a nickel;
and Golden Grain, the big Scent bag of roUyour-own,

13

New Regulations on Maryland and Burley

KW regulations adjusting tlie rates of process-
ing taxes on ^raryland and Burley types of
tobacco have been announced today bv the
Agricultural Adjustment Administration.' The
1.7 cents a ])Ound (farm sales weight) processing tax
on Maryland tobacco is reduced to zero while the two
cents a pound (farm sales weight) processing tax on
Burley is increased to 6.1 cents a pound, except on
Burley used in the manufacture of plug chewing to-
bacco and twist, on which the processing tax is estab-
lished at 4.1 cents a pound. The changes, effective
October 1st, were contained in Tobacco Kegulations,
Series 1, Number 1, signed September 2()th bv Secre-
tary of Agriculture Henry A. Wallace and approved
Thursday by President Roosevelt. The new regula-
tions also consolidate all previous regulations on to-
bacco.

Both adjustments are necessary, the regulations
said, in order to elfectuate the declared policy of the
Agricultural Adjustment Act. The new rates are
equal to the ditYerence between the current average
farm price and the fair exchange value of Maryland
and Burley tobacco, respectively.

No change is provided in the rates of processing
taxes on types of tobacco other than Maryland and
Burley. New conversion factors are established for
articles processed from Maryland, Burley, Hue-cured,
fire-cured and dark air-cured tobacco. These conver-
sion factors are for use in determining the amount of
taxes and refunds other than on Hoor stocks. The ex-
isting conversion factors for goods i)rocessed from
Maryland, Burley, flue-cured, iire-cured and dark air-

cured tobacco are ma(k^ applicable for use in deter-
mining taxes and refunds on floor stocks onlv, and no
changes are made in these except in the conversion
factors api)lied to twist chewing tobacco and other
cliewing to])acco.

The reguhitions fix the measure of the processing
tax on Burley tobacco in i)rocessing order from which
stem has not been removed at seven cents a pound
and on Burley tobacco from which stem has been re-
moved at 9.5 cents a i)ound.

Tlie secretary found, after investigation and after
considering testimony given at a public hearing held
September 5, 1934, that the full statutory rate of 6.1
cents a pound on Burley manufactured into plug chew-
ing tobacco and twist would cause such reduction in
the (luantity of Burley manufactured into these prod-
ucts, domestically consumed, '*as to result in the ac-
cunudation of surplus stocks of Burley tobacco, or of
plug chewing tobacco and twist produced therefrom,
or in the depression of the farm price of Burley to-
bacco," and that a rate of 4.1 cents would prevent
such results. Hence the establishment of the 4.1 cents
a pound (farm sales weight) rate on Burley used in
these products. This rate is in line with the rates on
flue-cured and dark air-cured tobacco used in the manu-
facture of plug chewing tobacco and twist.

On Burley tobacco in i)rocessing order used in the
manufacture of plug chewing tobacco and twist the
measure of tax is lixed at 4.7 cents a pound on that
from which stem has not been removed and at 6.4 cents
a pound on Uiat froiu which stem has been removed.

Complaint Against Manila Import

COMPLAINT that increasing imjKjrts of low-
priced Phili])pine cigars are endangering the
maintenance of the cigar code, particularlv in
the York County district of Pennsvlvania, is
being studied by the Import Section of the National
Recovery Administration. Directed against imports
from the islands of 'Mwo for Ave" cigars, the com-
plaint has been filed by the committee on importation
of Philippine cigars appointed by the Code Authoritv
of the cigar manufacturing industry.

The complaint states that increasing (juantities
of cigars have entered duty free from the Philippines,
on account of the rising cost of tobacco and higher
labor costs under the Code, and are comjieting with
tiomestically jiroduced low-piiced cigars which since
1920 have become the ''mainstay" of the cigar indus-

try. The cigar committee claims that along with a
general decline in the total cigar consumption by the
buying public, there has been even less buying of
higher-priced cigars. Twenty-three per cent.'of con-
sumption in this country was of the cigar selling for
live cents or less in 1923 and 85 per cent, in lU^, it is
stated.

Upon advice of the National Kecoverv Adminis-
tration, following preliminary study of the situation,
the President, under Section 'A (e) of the Hecovery
Act, inay order an investigation by the TaritT Com-
mission of complaints made by industries that imports
m increasing quantities are endangering the operation
of any code. After investigation by the TarilT Com-
mission, the President may take action to protect code
operation.

NRA Labels on Cigar Containers

HE National Recovery Administration has an-
nounced approval of the amendment to the
code for the cigar manufacturing industry, re-
quiring that all cigais manufactured or dis-
tributed under the code have "an NRA label in the
form of a stamp affixed to the outside of the container
thereof to symbolize . . . the conditions under which
they were manufactured." The stamp will bear the
NRA insignia and a symbol indicating the intended
retail price of the product.

14

These stamps will be sold to members of the in-
dustry by the (\)de Authority at prices and under
conditions to be apjiroved by the Administration. The
requirement will not become effective until such ap-
proval has been announced by the NRA.

Members of the industry may apply to the Code
Authority for permission to use these stamps ; and such
permission will be granted so long as they comply with
the code.

The Tobacco World

More and more dealers sayt
^hat I like about £1 Producto
quality is that it is consistent
—and it always builds quality
business/' Fc^ature El Producto
and add to your profits.

m

tkUmf. ciah» rn ^mc^mha^a.

KOLODNY ON "TWO FEES"

(Continued from Page 5)

wholesale tobacconists cannot distribute two-for-five
cigars on a 10 per cent, basis. They will necessarily
divert their sales effort to the distribution and promo-
tion of higher priced cigars and while this may be bene-
ficial to the cigar industry as a whole, it wnll contribute
nothing to the solution of the problems of the two-for-
five manufacturers.

Let me illustrate to you, briefly, the hardships this
limited margin would impose upon a large number of
wholesale tobacconists and why it would be practically
impossible for them to continue the distribution of two-
for-nickel-cigars.

The jobber pays — at present — for two-for-five ci-
gars anywhere between $16 up to $17.60 per thousand.
(Both groups subject to an additional discount of 2
per cent.) This gives the jobber an average discount
on two-for-nickel cigars of 14 per cent, plus cash dis-
count of 2 per cent. — practically the maximum per-
missible under the recently approved cigar merchan-
dising plan.

If this jobber is to be confined and limited to a
discount of 10 per cent, on a gross price of $20, it would
involve a sacrifice of 4 per cent, on his total purchases.
If the jobber is selling five million tw^o-for-nickel cigars
per year, it would mean a cost — to him — of $4000 per
year — which may actually be the difference between his
operating in ** black" or **red*' figures. And, Mr. Ad-
ministrator, as of today, a volume of five million two
for-nickel cigars per year is common among many,

October J$, 1934

EL PRODUaO

/or real enjoyment 1 r\ cents

L\^ AND UP

many wholesale tobacconists.

\Miile the continuance of production of two-for-
five cigars is a subject of constant and serious debate
among many members of the manufacturing and dis-
tributing branches of the industry, we believe, however,
that just as long as two-for-nickel cigars are manufac-
tured and that if labor is to be employed and machinery
used for their production — it must produce a fair re-
turn and a living income for the wholesale tobacconist
and his employees.

Of course, Mr. Administrator, I question the feasi-
bility, practicability, or perhaps the good sense of the
continuance of the production of any product, if, in
order to present it to the consumer at a low price, the
maker of the product or the distributor of that product
must be depriv^ed of a liv^elihood and his ability to
maintain a high standard of hours and wages.

I can foresee a most glorious day for humanity if
products so exacting will be eliminated from human
consumption. This is, however, a prophecy of the
future.

We are confronted and are facing — at this time —
the realities of life and as a realist, I am constrained
to inform you, and those members of the industry who
believe that the recommendations presented at the
present hearing are the best solution, that it would be
])hysically and absolutely impossible for the wholesale
tobacconists to market such cigars at such a limited
discount.

I am submitting — for the record — a number of let-
ters and telegrams received from our members ex-
pressing opinion regarding the subject matter of this
hearing.

<'.ll

V

^.jiunra

liMMm

.mlMfii,.

v<:^^ /. ■ .'

!'i4i!i_

j'H'iy Bii?!sa;' ,

News From Congress

FtDERAL

Departments

*~j>

• •tl

^^IIIEX representatives of the two-for-five-ceiit
L\«I IJi'aiieh of the cigar industry appeared before
officials of the National Recovery Administra-
tion to discuss recommendations of the Code
authority to deal with an allejred emergency in the in-
dustry, eleven recommendations were submitted by
the Code authority, as follows :

'*That all manufacturers of cigars, stogies and
cheroots made to retail at two for five cents shall, ex-
cept as otherwise in these reconnnendations specifi-
cally ]irovided, comply with each and ever>' provision
of the Code for the cigar manufacturing industrv; and
all previous orders and resolutions grantinir aiiy ex-
emptions and/or stays with respect to the obligation
of such manufacturers to comply with said Code be
and the same hereby are specificallv revoked and
annulled.

*'That the weight of cigars, stogies and cheroots
manufactured to retail at two for five cents shall be
limited to and shall not exceed 18 imunds i)er thou-
sand, to be determined at the time when such cigars,
stogies and cheroots dre i)acked in containers as here-
inafter provided.

**That cigars and stogies manufactured to retail
at two for five cents shall be packed bv nuinufacturers
in containers and not less than 1U() such cigars and
stogies shall be packed in each container.

"That notwithstanding anv different or contrarv
provision of the (/ode or of the merchandising provi-
sions thereof: the selling price to retailers of cigars,
stogies and cheroots manufactured to retail at^two
tor five cents weighing between i:? and 18 pounds ])er
thousand shall be not less than $20 per thousand, less
a discount of 2 per cent, for cash, and the selling ))ric('
to .lobbers of such cigars, stogies and cheroots shall
be not less than $18 per thousand, less a discount of 2
per cent, for cash.

**That notwithstanding anv different or contrarv
provision of the Code or of the merchandisinc- provi-
sions thereof, the sellin- price to retailers of cigars
and slogies manufactured to retail at two for five cents
weighing less than 13 pounds per thousand shall l)e not
less than $19.60 per thousand, less a discount of 2 per
cent, tor cash, and the selling pvk-o to jobbers of such
cigars and stogies shall hv not less than $17.00 per
thousand, less a discount of 2 per cent, for cash.

''That no special allowance as to selling price
shall at any time be given to anv retailer or jobber
which m substance or effect will reduce the price.s here-
inabove specified.

*'That th.* t'r)regoing limitations and restrictions
with respect to the weight, method of packing, sellinir
prices, discounts and special allowances shall be bind-
ing upon all manufacturers and importers with respect

i6

From quw Washinoton Bureau eZZAiBti Buildimg

to all cigars and stogies and also to cheroots weigh-
ing over 13 jionnds, to be sold at two for five cents
anywliere and everywhere in continental United
States, regai-dless of where such cigars, stogies and
cheroots are manufactured.

"That the foregoing recommendations numbered
'First' and 'Fourth' applicable to cigars, stogies and
cheroots shall become effective not later than October
1, IJKU, and be applicable to all cigars and stogies and
to all cheroots weighing over 13 ])ounds, selling at two
for five cents in continental United States, includin*r
such cigars imported from the Philii)j)ines and Puerto
Rico. That the foregoing recommendation nuin])ered
'hiftir applicable to cigars and stogies shall become
effective not later than October 1. 1934 and be appli-
cable to all such cigars selling at two for five cents in
continental United States, including such cigars im-
I)orted from the Philippines and Puerto Kico.

"That the foregoing recommendation numbered
Second' shall become effective not later than Jan-
uary 1, 193.'), and shall be applica))le to all cigars, sto-
gies and cheroots selling at two for five cents in' con-
tinental United States. That the foregoing recom-
mendation numbered 'Third' shall become effective not
later than January 1, 1935 and shall be applicable to
all cigars and stogies selling at two for five cents in
continental United States.

"That cheroots weighing less than 13 pounds per
thousand and little cigars as hereinafter defined, are
not and shall not be deemed to be affected by anv of
the foregoing recommendations.

"To make effective the purpose and intent of
these reconnnendations and for the purpose of daritv
unitorniity and compliance therewith and the (Vnle of
the Cigar Manufacturing Industrv, cii^ars, stocrio^
cheroots and little cigars are hereljv defined a<"fol-
lows :

" in) A cigar is a j>roduct made entirelv of tobacco
with a finislnd head;

"(1)) A stogie is a jiroduct made entirelv of to-
Imcco nt a distinctive type as to contents andappear-
ance. It frequently has an unfinished or twisted head
and IS often not easily <listinguishable from other ci-
gars. In order to differentiate between sto«rics and
cigars manufacturers must register the brand names
ot such cigars and designate them as stogies with the
.National Tobacco Council and with the Manufactur-
ing ( ommittee of the Cigar Code Authoritv and shall
suhinit box samples to such Manufacturing'Committee
tor acceptance as to such designation;

"(c) A cheroot is a product madi' entirelv of to-
ha<<'o open at lioth ends;

"(<1) Little cigars are a product made entirelv of
obacco, the total weight of which is not more than
three pounds per thousand."

Th€ Tobacco World

Under Billy Penn's Hat

Herman Abrams, representing the Me<lalist fac-
tory, is now in Ilarrisburg territory, exj)anding the
(list ril)ut ion and sale of the Medalist brand in excel-
lent fashion. Yahn & McDonnell report this brand
showing a marked increase in demand.

Another visitor in town last week was AVilliam
Freeman, of the Medal ot* Honor Cigar Comi)any, and
William ()sl)orne, of the Larranaira factorv.

John L. Mc(iU(M'ty sto])ped off here to visit the
retail and jobbing trade and spread tlie good news
that Konieo y Julieta is going ahead at a fast ])ace.
X. Snellenbiirg & Co., lias been featuring a window
and case display of Komeo y Julieta with splendid re-
sults.

The Don Sebastian brand, distributed by John
Wagner & Sons, is being displayed in a greater num-
ber of stands here everv dav, and the demand for this
brand is showing a sj)lendid increase. (Jeorge Stock-
ing, genial rejiresentativc of Arango y Arango, is ex-
pected in town this week. (Jinibel Brothers have been
featuring a fine (lis])lay on Don Sebastian cigars dur-
ing the past week and gaining new friends for the
brand.

STATEMENT OF THE OWN'ERSHII', MANAGEMENT, CIR-
CULATION, ETC., REQUIRED BY THE ACT OF CON-
GRESS OF AUGUST 24. 1912.

Of THE TOBACa) WORLD. Published Semi-Monthly at Philadelphia, Penna.,

tor Uclol)er 1. IM.W.

^•te ci Pennsylvania,

ss.

County of Philadelphia,

Before rae, a Notary Public in and for the State and County aforesaid, per-
sonally appeared (ierald K. Ilankins, who, havinit been duly sworn according to
law. deposes and says that he is the bu»i»u»s manager of THE T(JIlACCO
World, and that the following is, to the best of his knowledge and belief, a
true statement of the ownt-rship, nianaKeinent (and if a daily paper, the circula
tion), rtc, of the aforesaid publication for the ilaie shown in the above caption,
requirt-d by the Act of August J4, 1*^12, cnibodie«i in Section 411, Postal Laws and
Regulations, printed in the reverse of this form, to wit:

1. That the names and aiMrpsse"* of publisher, editor, managing editor, and
business managers are;

Publisher — The Tobatm Wnrld ( utporation, Z3t> Chestnut Street, Philadel-
phia, Pa.

Editor— Hobart H. Hankins, 2J6 Chestnut Street, Philadelphia, Pa.

Managiog Editor None.

IJusiness Managers — (iirald B. Hankins, 2J6 Chestnut Street, Philadelphia,
Pa

2. That the owner is: (If owned by a cor|>oration, its name and address must
he stated and also immediately thereunder tl.e names and addresses of stock-
holders owning or holding one per cent or more of total amount of stock. If not
owned by a corporation, the names and addresses of the individual owners must
lie given. If owneci by a firm, company, or other unincorporated concern, its name
and address, as well as those of each individual member, must be given.)

The Tobacco World ("or|K>ration, 2.^6 Chestnut Street, Philadelphia, Pa.

Hobart H, Hankins, 2M> Chestnut Street. Philadelphia, Pa.
^. That the known bondholders, mortgagees, and other security holders owning
or holding 1 j>er cent '»r more of total amount of bonds, mortgages or other securi-
ties are: (If there are none, so slate.)

^fone.

4. That the two paragraphs next alxjve, giving the names of the owners, stock-
holders, and security holders, if any, contain not only the list of stockholders and
security holders as they appear upon the iHMiks of the company but also, in cases
where the stotkholder or security holder appears upon the books of the company
as trustee or in any other fiduciary relation, the name of the person or corporation
for whom such trustee is acting, is given; also that the said two paragraphs con-
tain statements embracing affiant's full knowledge and l»elief as to the circum-
stances and conditions under which stockholders and security holders who do not
appear upon the Imoks of tne company as trustees, hold stock and securities in a
capacity other than that of a liona fide owner; and this affiant has no reason to
believe that any other person, association, or corporation has any interest direct
or indirect in the said stock, bonds, or other securities than as so stated by him.

5. That the average nuinlirr of copies of each issue of this publication sold or
listributed, through the mails or otherwise, to paid subscribers during the six

mimtlis preceding the date shown above is.
required from daily publn atiott^ only >

Sworn to and subscribed before me this
28th day of September. l'*34.

JOHN J. RrTHERKORD.
(Seal) Notary Public

My commission expires January 22, 19.1.5.

(This information is

GERALD B. HANKINS,

Business Manager.

rmTLiBj

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Quality

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Cigars

Meeting the public's demand
for quality cigars
moderately priced

NEW

CURRENCY

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Our Other Popular 2 for 5< Cigars
JAMES G. BLAINE • • POSTMASTER
LA FRAOSA • SARONA • WAR EAGLE

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION -i^^fll^^

OF UNITED STATES ^-^^flM/^

JESSE A. BLOCH. Wheeling. W. Va President

IhWAh^^^l^^WH^' ^"^^ ^°'^' N- Y Vice-President

VSILLIAM BEST. New \ork. N. Y Chairman Executive Committee

MAI. 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

RETAIL TOBACCO DEALERS OF AMERICA. INC.

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y President

CLIFFORD N. DAWSON, Buffalo. N. Y Executive Vice President

JAMES C. THOMPSON. Chicago, 111 Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. New York City President

MILTON RANCK, Lancaster, Pa First Vice-President

Pi.|*llk,^.tfl^'v^'**,>'°'^'' ^'*y Second Vice-President

LEE SAMLELS. New York City Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave., Newark, N. J President

ALBERT FREEMAN. New York, N. Y „ First Vice-President

A. STERNBERG, Newark, N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE President

SAMUEL MAGID. 2001 N. Mervine St., Philadelphia, Pa ".SecteUry

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E. ASBURY DAVIS, Baltimore. Md President

JOSEPH KOLODNY, 200 Fifth Ave., New York, N. Y Secretary

GEO. B. SCRAMBUNG, aevcland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN President

HERMAN H. YAFFE, 301 Fox Building, Philadelphia, Pa Secretary

EstablUhed 1886

"BEST OF THE BEST"

Maanfacturad by

A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Ktp West. Florida

OUR HIGH-GRADE NON-EVAPORATING

QGAR FLAVORS

Make tobacco melCow and smooth In charactat
and impart a most palatable flavor

FUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
AKTUN. AlOllATIZEl. BOX FLAVOIS. PASTE SWEETENEIS

FRIES 6l BRO.. 02 Reade Street. New York

m2i^i^m2^s^ss3^

>iw^-wjw,^vfyju»yjiv»y^^»yj^»y,';x»yjA»/jat/jL^^^^

Classified Column

The rste foi this column is three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c.) psysbls
strictly in advance.

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while line.
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3-story and concreted basement building adjacent to P. R. R.
freight station in York, Pa. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. See A. Kaufl-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE— Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168. Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, ^Ew^ioS" c^ri^

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 tbe 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 Dollara
($2.00) will be made and so an additional charge of One Dollar ($1.00) will b«
made for every ten (10) additional titles necessarily reported.

REGISTRATION
SKEET:--46,371. For all tobacco products. The Axton-Fisher To-
bacco Co., Inc., Louisville, Ky., September 27, 1934.

TRANSFERS

EL VENDURA:— 23,400 (Tobacco World). For cigars, cigarettes,
cheroots, stogies, chewing and smoking tobacco. Registered May
9 1912, by Emze Cigar Co., Philadelphia, Pa. Transferred to Geo.
Zifferblatt & Co., Philadelphia. Pa., September 25, 1934

GOLD STRIPE:— 45,679 (Tobacco Merchants' Association). For
all tobacco products. Registered February 17, 1930, by Geo Schle-
gcl, Inc., New York, N. Y. Transferred to Continental Cigar
Corp., Scranton, Pa., September 26, 1934.

UNCLE FULLER:— 45,001 (Tobacco Merchants' Association). For
twist and smoking tobacco only. Registered June 13. 1927, by Brit-
tain Tobacco Co., College Grove, Tenn. Transferred to Barlow-
Moore Tobacco Co., Inc., Bowling Green. Ky., September 25, 1934.

BRAN-NU: — 45,002 (Tobacco Merchants' Association). For twist
and smoking tobacco only. Registered June 13, 1927, by Brittain
Tobacco Co., College Grove, Tenn. Transferred to Barlow-Moore
Tobacco Co., Inc., Bowling Green, Ky., September 25 1934

LORD JAMES:— 30,108 (Trade-Mark Record). For cigars, ciga-
rettes and tobacco. Registered June 27, 1904, by Geo. Schlegel,
New York, N. Y. Through mesne transfers acquired by Chicago
Cigar Box Co., Inc., Chicago, 111., and re-transferred to Nathan
Cinsburg, Chicago, 111., September 28, 1934.

GOLD STRIP:— 45,679 (Tobacco Merchants Association). For all
tobacco products. Registered February 17, 1930, by Geo. Schlegel,
Inc., New York, N. Y. Transferred to Continental Cigar Corp.,
Scranton, Pa., and re-transferred to the Stratford Cigar Co.. Inc..
Dayton, Ohio, (October 2, 1934.

JOHN GRAHAM:— 23,767 (Tobacco Leaf). For cigars, cigarettes,
smoking fine cut and plug tobacco, snuff and cheroots. Registered
August 18, 1902, by K. C. Walters, Minneapolis, Minn. Through
mesne transfers acquired by John H. Swisher & Son, Inc., Newark,
Ohio, and re-transfcrred to F. A. Brown & Co., Lincoln, Neb., Sep-
tember 25, 1934. • . F

GATEWAY:— 14.521 (Tobacco Leaf). For cigars. Registered Jan-
uary 10, 1898, by Shaw & Kirkland, Utica N. Y. Transferred to E.
Popper & Co., Inc., New York, N. Y. October 2, 1934.

CAVALCADE:— 26,973 (Trade-Mark Record). For cigars, ciga-
rettes and tobacco. Registered June 18, 1902, by Geo. Schlegel,
New York, N. Y. Transferred to Continental Cigar Corp., Scran-
ton. Pa., October 5, 1934.

Send Two Dollan, with the coupon below to Tlie
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name.

Street No.

P. O

JState

jib^'-'^ ;

NOVEMBER 1, 1934

LIBRARY

RECEIVED

NOV 5 193-

s.^iiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiii|l

COMMON

-/3

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
A UTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

Phi la., Pa.
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION

Lima Ohio

A Nation. Wide Service

York, Pa.

Chicago, 111.

Detroit, Mich.

Wheeling, W. Va.

V.

^t ■■-— » w— -

llllllllll)!llll»l

^^

""""""""""""'"fini

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA.

After all
nothing satisfies like^
a good cigar

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

Remember thjt Regardleu of Pric*

THE BEST CIGARS

AME PAOUD IM

WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

NOVEMBER 1. 1934

No. 21

HE STAY on the mercliandising provisions of
the Ketail Tobacco Code as affecting cigars,
liaving been lifted and ani})le time having been
given to the trade to acquaint itself with the
provisions, the Code went into full effect on October
29th. Sales below the minimum price established con-
stitute a violation of the Retail Tobacco Code and will
receive the prompt attention of the National Kmer-
ge.ncy Council of the National Recovery Achninistra-
tiou.

CJ3 CP CJ3

HE RETAIL price of cigars is recorded by the
manufacturers. These recorded prices must
not be cut. On cigars selling at less than five
cents each, there is no discount allowed for
quantity sales. On sales of cigars retailing at five cents
each or more, a discount of not more tlian 5 per cent,
may be allowed on quantities of ten or more units.
This is arrived at by nmltiplying the unit price by the
number of units sold and deducting the discount al-
lowed. All fractions of a cent in the resulting total to
be added as an even cent.

On sales bv the box at retail — twentv-five cigars or
more — a discount of not more than 8 per cent, may he
allowed. This is computed as in the paragraph above.

EXAMPLKS OF LOWEST PRICES AT WHICH CIGARS MAY

BE SOLD UNDER THE CODE

Excejition — The cigar manufacturer may have re-
corded a ])ox price of less than 8 per cent, allowance —
and marked price on tlie box — in such case the recorded
price is to prevail.

The retailer may give not more than one pad of
matches with each unit sold, or five to each box of
twenty-five cigars or ten to each box of fifty cigars sold.

No cash discounts may be allowed.

In States where there is a State tax, such tax is to
be added to minimum price recorded.

Damaged goods may be sold at less tiian recorded
prices, provided certain well-defined conditions are
strictly adhered to.

Recorded prices shall not be reduced by coupons,
premiums, or by any device or subterfuge.

Commissions, rebates or refunds of any character
are sf)ocifically forbidden under the Code.

Cj3 Cj3 Ct3

Recorded Prices One Ciprar 10 Cigars 25 Cigars

50 Cigars

Less than
5C each

Maximum dis- Maximum dis-
count of 5'^'" count of 8%

Maximum dis-
count of 8%

No Redactions

OLLOWING are extracts from the Code of
Fair Competition for the Retail Tobacco
Trade, as approved on June 19, 1934, by Presi-
dent Roosevelt :

Section 1. In the case of all cigars purchased by
retailers from cigar manufacturers, jobbers or sub-
jobbers in connection with which a retail price shall
have been recorded by the manufacturer as hereinabove
provided, the retailer shall sell such cigars at retail
at not less than the retail price so recorded, provided,
however, that (1) in the case of the sale at retail of
multiples of not less than ten (10) units (except in the
case of cigars selling for less than five cents (5^) each^
a discount may be allowed of not more than five per
cent. (5%) from the retail price, and (2) in the case
of sales at retail of boxes of twenty-five (25) cigars or
more a discount of not more than eight per cent. (8% )
from the retail price may be allowed unless the cigar
manufacturer shall record with the Council and mark
a box price thereon involving a discount of less
tJian eight per cent. (8%) in which case the marked
box price shall be observed as a minimum, and (3) the
retailer may give not more than one (1) pad of matches
for each unit sold, or five (5) pads per box of twenty-
five (25) cigars or t^^n (10) patb; per box of fifty (50)
cigars sold. In the case of any retailer granting a cash
discount upon all purchases made, any sales of cigars
shall be excluded in computing the cash discount to hv
allowt^d, or the amount of cash discount shall be in-
cluded in the price of the merchandise sold in addition
to the minimum prices herein provided.

Section 2. Upon any sale to a consumer, situated
at the time of such sale in a state imposing a tax on
tobacco products or the sale thereof (other than a tax
payable by the manufacturer) the amount of such tax.

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation: Hobart B. Hankins, President and Treasurer;
Gerald B. Hankins. Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only ^o those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3. 1879

5<^

2 for 15^

3 for 25^

10^

2 for 25^

15^

3 for 50^

2(V
25#

3 for $1.

5^

48^

$1.15

$2.30

64

57#

1.38

2.76

It

67^

1.61

3.22

84
2/15*

72ff

1.73

3.^

94

80^

1.92

3.84

io<

95^

2.30

4.60

2/254
ISf"

1.19

2.88

5.75

1.V

1.43

3.45

6.90

17<'

3/504

1.59

3.84

7.67

20t

1.90

4.C)0

9.20

25^'

2.38

5.75

11.50

o /d»i

3.17

7.67

15.33

Maximum discount of 8 per cent, on 100 cigars or
more.

if not i)aid by the consumer, shall be added to the mini-
mum price herein provided, whether the seller shall be
located within or without such state.

Section 3. Notwithstanding the provisions of this
merchandising' plan, any tobacco retailer may sell al
less than the prices therein prescribed merchandise
sold as bona fide clearance or bona fide discontinued
lines of merchandise or imperfect or actually damaged
inerchandise or merchandise sold upon tlie compielo
final lijpiidation of any bnsiness or merchandise do-
nated for charitable purposes or to unemi)lovment re-
lief agencies, provided that all such merchandise shall
be advertised, marked and sold as such and that a strip
label shall be placed across the inside lid label of box
goods to be disposed of, stating the leason the said
merchandise is being sold below the prescribed j)rices
therefor and provided further that such merchandise
shall be disposed of pursuant to any regulation as to
the manner of such disposal as shall be issued l)v the
Code Authority subject to the approval of the Adn*iinis-
trator.

Section 4. Except as in this merchandising plan
otherwise expressly provided wherever under anv of
the provisions of this merchandising plan any cigar
is required to be sold at retail at a minimum i)rice, sucli
minimum retail price shall not be reduced directly or
indirectly or by any device or subterfuge such as* the
giving of any trading or merchandise coui)ons, prizes
or premiums or any other thing of value or discount,
rebate, refund, commission, credits or allowances
whether in the form of money or otherwise; nor shall
any retailer offer or extend special service or ])rivilege
to any customer which is not available to all customers.

These box prices apply only if the manufacturer
has not fixed the box price at a greater amount. Illus-
tration: A manufacturer may file tht* box inice of a
2 25-cent cigar at $6 a box, and so mark the box. In
such case, the box jirice for fifty cigars would be $6,
and the 8 per cent, reduction would not l)e allowed.

RETAILING REQUIREMENTS

By I. H. Lefkowitz,
Pres. Associated Retailers, Inc.
HE RETAIL CODE AI THOKITY has issued
the following order, and it becomes a part of
tlie Code: **Purchase of merchandise from Code
violators: It shall be an unfair trade jiractice
for any member of the Retail Tobacco Trade to pur-
chase any brand of cigars with res|)ect to which the
manufacturer shall have violated the lu'ovisions of the
Cigar Merchandising Plan in relation to the filing of
minimum retail prices and discounts or any otlier
merchandising provisions of the Code of Fair
Competition for the Cigar Manufacturing Industry,
relating to sales to retailers." This, in short, means
that you are not to i)urchase, sell or display any cigars
unless

1. The manufacturer notifies you officially that he
has filed prices and discounts with the National To-
bacco Council;

2. That their shipments received l)y you on the
29th of October or thereafter are stamiK'd with the
Code Authority stamp;

3. That their boxes show prominently the Resale
Price of each cigar.

The cigar manufacturers generally are all living
up to the Code, but if any manufacturer should not
follow out the above conditions, he is a Code violator
just as much as you, who are selling his cigars.

Remember

1. Retail selling prices must be as the boxes are
marked by the manufacturer.

2. You can give 5 per cent, discount on purchases
of ten cigars. Any less than ten gets no discount.

3. The only exception, under a new^ order, is five
ten-cent cigars, which may be sold at 5 per cent, dis-
count, or 48 cents net.

4. Nothing else is allowed, not oven seven for $1.

5. A box buyer gets 8 per cent, discount from the
sale i)rice of 25 or 50 individual cigars. He does not
^ot both the 5 per cent, and the 8 per cent. He gets
only the 8 per cent.

6. Small cigars, selling under a nickel, do not get
the benefit of the 5 per cent. For instance, a package
retailing at ten for 13 cents cannot be sold two for 25
cents.

7. Small cigars, cheroots and stogies all are classed
in the cigar Code as cigars.

8. Read your copy of the Code. The Cigar Mer-
chandising Plan goes into full effect on October 29.
1934. '

CODE AUTHORITIES APPROVED

UFj National Industrial Recovery Hoard has
aj)i)roved the method of selection and recog-
nized the personnel of the Code Authoritv for
the retail tobacco trade. The members* are:
William A. Hollingsworth, 233 Broadwav, New York
City; (MifTord A. Dawse, 2(K) Ellicott Square, HuiTalo,
N. Y.; I. H. Lefkowitz, 128 W. Thirty-sixth Street, New
York City; .Tosej)!! Sanderson, 4 AVashington Avenue,
Chelsea, Mass.; Louis Klein, 1300 Euclid Avenue,
Cleveland, O. ; Arthur S. Meyer, vice-president, D. A.
Schulte, Inc., .386 Broadway, New York City, and for
the non-association mem])ers of the trade, Daniel
Crean, 256 W. Fifty-seventh Street, New York VHv ;
Frederick AV. Griffith, Pennsylvania Drug (N)., New
York City, drug dealers representative; and Howard
H. (Jehrhard, Sanitary (Jrocery Co., AVashington, 1). (\,
food and grocery distributors representative.

NRA has also announced the ajipointment of Ad-
ministration mem])ers to tlic Wholesale Tobacco
Trade as follows: Robert E. Hincliart, vice-jiresident
of the Frank Presbrey Co., New York City. Mr. Rine-
hart also is Administration nn'mber of code authori-
ties for the cigar manufacturing and cofTee industries.

GENERAL CIGAR PROFITS

ENERAL CKiAR CO. and its wholly owned
subsidiary. General Cigar Co., of Cuba, Ltd.,
report for the rpiarter ended SeptiMnber .30th
net income of $(i34,()ll after interest, deprecia-
tion. Federal taxes, etc., e'pial after dividend reipiire-
ment^s on the 7 per cent, jireferred stock to $l.l(j a share
on 472,982 no-par shares of common stock. This com-
pares with the net income of $737,03r> or $L37 a sliare
on the common in the preceding (piarter and net loss
of $242,f;i9 in the September (piarter of 11)33 after in-
ventory adjustment amtninting to $l,00(i,423. For nine
months net income was $1,700,825 after charges and
taxes, (Mpial to $3.05 a share on the common, compared
with net income in the similar VXVS i)eriod of $11)8,438,
e<pial to $3.97 a share on the 50,000 shares of 7 per cent,
preferred stock.

Harry Tint, 1420 Chestnut Street, is featuring a
fine dis])lay of Romeo y Julieta cigars, with good re-
sults.

The Tobacco World

Cigars Down, Cigarettes Up, in September

HE following comparative data of tax-paid
products, indicated by the monthly sales of
stamps, are issued by the Bureau.^ (Figures
for Seiitember 1934 are subject to revision

until published in the annual report.)

Products
Cigars (large) :

('lass A No.

('hiss B No.

C^lass C No.

Class D No.

Class E No.

1934

346,729,725

3,814,707

41,207,946

2,909,049

200,353

September

1933

364,432,420

2,435,570

52,199,642

4,168,531

363,62-3

Total 394,861,780 423,599,786

Cigars (snudl) No. 21,017,440 21,994,000

Cigarettes (large) ..No. 165,600 243,900

Cigarettes (small) ..No. 10,294,498,803 9,527,722,933

Snutr, manufactured. lbs. 2,794,486 3,210,301

Tobacco, manufcCd .lbs. 24,439,279 25,922,557

Tax-i)aid ])roducts from Puerto Rico (not included
in above statement) were as follows:

September
Products 1934 ly;^

Cigars (large) :

Class A No. 4,272,400 3,025,450

Cla^s B No. 222,(K)0 59,000

Class C No. 73,650 72,250

Total .,...

4,568,050

Cigars (small) No. 19(1,000

Cigarettes (large) ..No.

Cigarettes (small) ..No. 360,200

3,156,700

650,000

50,0(K)

319,000

Tax-paid products from the Philipi)ines (not in-
cluded in above statement) were as follows:

Products
Cigars (large) :

Class A No.

Class B No.

Class C No.

Class I) No.

Class E No.

Total

September
1934 1933

5,700,615

23,114,825

10,02'7

16,720

6,156

16,868

50

501

5,716,798 23,148,964

Cigars (small) No.

7,800

Cigarettes (large) . .No.

3,000

Cigarettes (small) . .No.

.30,400

96,370

Tobacco manufact M . lbs.

42

SEPTEMBER WITHDRAWALS 1920 TO 1932

INCLUSIVE

Sept., 1920.
Sept., 1921.
Sept., 1!)22.
Sept., 1923.
Sept., 1924.
Sept., 1925.

November /, tgS4

.678,640,116
. (514,427,829
.625,771,965
.598,817,907
.605,608,215
..)/o,H)3,b4i)

Sept., 1926.

Sept., 1927.

Sept., 1928.

Sept., 1929.

Sept., 1930.

Sept., 1931

September, 1932, 405,418,907

600,016,402
639,359,094
586,266,514
591,738,380
523,973,060
449,329,986

COMPARATIVE COLLECTIONS FOR THE MONTH

OF SEPTEMBER

1934 1933

^iource ot Revenue

^}^^^^ $972,024.37 $1,109,307.07

^^^'^jettes 30,884,779.93 28,585,235.59

^""ff • • • • 503,007.49 577,854.20

lobacco, chewing and

^ ?"ioking 4,399,263.25 4,666,115.95

C 1 g a re 1 1 e papers and

^,.^"*^^!^ 92,722.56 68,985.76

Miscellaneous, relating to

tobacco 1,889.40 15.74

COLLECTIONS FROM AGRICULTURAL ADJUST-
MENT TAXES AND TOBACCO SALES TAX

Commoditv

Total from

Month of July 1, 1934

September (fiscal year

Tobacco (tax effective Oc-
tober 1, 1933)

Processing tax $2,455,622.08 $7,059,358.67

Import compensating

taxes 11,819.74 87,086.60

t loor taxes 3,034.95 9,847.99

Total, tobacco.. $2,470,476.77 $7,156,293.26

TOBACCO COUNCIL EXPLAINS

HE National Tobacco Council issued the follow^-
ing explanation of Article VI, Section 2, of the
Code of Fair Competition for the Retail To-
bacco Trade (i)art (c), section 2, of Schedule
I), which re(iuires the addition of the amount of all
taxes on tobacco products or the sale thereof (other
than a tax payable by the manufacturer) to the mini-
mum prices of cigars as listed with the Council under
the Cigar Merchandising Plan:

1. The requirement of the Cigar Merchandising
Plan that the amount of State taxes (other than those
payable by the manufacturer) shall be added to the
minimum retail price ai)plies only to specific taxes on
cigars and not to sales taxes applicable generally to all
sales of merchandise.

2. In States where a specific tax (other than taxes
payable by the manufacturer) is levied on cigars, the
amount of such tax must be added to the minimum
retail i)rice as recorded and shown on the box or con-
tainer. Where the amount of the tax amounts to anv
fraction of a cent it shall be treated as a full cent and
added to the recorded minimum unit price.

3. In comi)uting the tax on multiple sales the total
tax shall be added to the multiple sales price and if the
net result contains a fraction such fraction shall also
be treated as a full cent.

4. For example: Where the vState tax on cigars
would be one-half of a cent on a five-cent cigar, one
cigar must be sold for six cents and two cigars for
eleven cents, ten cigars for fifty-five cents, less 5 per
cent., or fiftv-three cents.

HIA.

BAYUK BUSINESS BREVITIES

OB RIXK, fornieilv with the Baviik sellins: or-
ganizatioii and now associatotl with Electronic
Laboratories, Intlianapolis, Inch, specialists in
displays, stopped in lor a visit with his old
co-workers while on a business trip to Philadelphia
. . . The Sunshine Club held a highly enjoyable social
affair at Broadwood Hotel, and there were about 2500
people there. The club is composed and officered by
Bayuk employees. This year's gatherim;-, at which the
music was rendered by Karl Denny's Orchestra, ex-
ceeded any of the annual atTairs held in the past . . .
Carleton Evans, of the Washington Tobacco Co., Bayuk
distributor in the Cai)itol City, was a recent visitor at
headquarters, and reported himself as well ))leased
with the strong demand }»ayuk brands are enjoying in
that market . . . Phillies are well dis])layed in the local
market, where distribution is handled bv the Philadel-
phia branch office under the supervision of E. Sharrock.

G. H. P. JOTTINGS

ETURXIXG from a couple of weeks' trip
through the Middle West, Frank P. Will, exec-

j utive vice-president of (J. H. P., attended the
annual sales meeting in New York, where,
among other things, were discussed jiromotion plans
for holiday sales of El Producto. He was accompanied
by D. A. Jenks, assistant sales manairer, who had just
returned from Buffalo, Rochester, Scranton and other
points . . . Irving Sand and John F. Motlitt are two of
the latest additions to (J. H. P. 's New York sales force.
Mr. Jenks says this expansion of the Manhattan force
is in line with what (i. H. P. is doing throughout the
country generally, men having been recently added in
Chicago, Detroit and Cleveland . . . Abe Finesman, of
the American Beaut v Cigar Co., of the Ohio towns of
Toronto and Canton, was a recent visitor. He brought
the good news that his brotiier, Morris, who has been
sick, is now well.

Barton Lemlein, of M. Sacks & Co., stopped off in
Philadelphia last week to report good business for his
firm. Mr. Lemlein has just returned from a trip as far
w^est as the Pacific coast, due to the illness of Joe
Banker, and reports a most successful trip.

Trade Notes

The Gimbel Store is featuring Wagner cigars this
week in a fine counter and case display.

Abe Caro, the Oj)timo man, was a visitor at Yahn &
McDonnell head(piarters last week.

John L. McGuerty, of the Romeo y Julieta factory,
was in town last week and reports l)usiness showing a
nice increase on his brand.

One of the street windows of the M. J. Dalton store
at 617 Chestnut Street was broken on Sunday night,
and John Flanigan reports the loss of several fine Ron-
son lighters.

William Copj)le, sales representative for the M.
Marsh & Son factory. Wheeling, W. Va., was in town
last week and was highly elated over the splendid de-
mand for Marsh products in this territory.

Ben Lundey, factory representative of the Garcia y
Vega factory, has just returned from a highly success-
ful trip to Baltimore and Washington, in the interest
of his brand.

Clarence Thompson, for many years in charge of
the cigar stand in the Bellevue-St rat ford Hotel, has
joined the forces of Faln'i-, Coe ^' (Jregg, and is cover-
ing parts of Pennsylvania in the interest of their fine
line of post -prohibit ion beverages.

Tony (larcia, of (Jarcia y Vega, entertained the
sales and ofTice forces of Yaiin & McDonnell, local dis-
tributors of his l>rand, at the Penn Athletic Club on
October 19th. A splendid dinner was served the guests
and plenty of good entertainment was provided.

Herman Abrams, Medalist factory representative,
is on a trip through eastern Pennsylvania in the inter-
est of his brand, and from reports coming in to the
local distributors of the brand, Yahn & McDonnell, he
is having a lughly successful trip.

Thg Tobacco World

WHEN DETAILS
ARE WEARING .

LEAF-TOBACCO
EXPERTS AGREE:

Camels are made from
finer. More Expensive
Tobaccos— Turkish and
Domestic — than any
other popular brand. "

*Viei-

-^ -^

'< \

P

• \

vt>^

# On this page are submitted the latest re-
ports received from Camel smokers. ..real ex-
periences of real people. Miss Eve Miller has
an exacting job as a New York department-
store executive. She appreciates the value of
keeping her energy up to par. She says: "I
started to smoke Camels because I appreciate
mildness and delicacy of flavor. I found, too,
that Camels give me a lift' when my energy
is low — and Camels never upset my nerves."

PtE-MEDICJIL STU-
DCKT. Charles Ste-
phens, jr., says :
"■>X"hen I am 'done
in,' a Camel erases
that tired feeling.
And Camels are a
milder ciicarette!"

CIMimON GOLFER.
Miss Helen Hicks
says : "I can always
restore my energy
with a Camel. And
I can smoke Camels
constantly without
jangled nerves."

^^

You art invited to Tune In on the New

CAMEL CARAVAN

uitb

WALTER O'KEEFE • TED HUSING

ANNETTE HANSHAW

GLEN GRAYS CASA LOMA ORCHESTRA

TUESDAY

10:00 P.M. E. S.T. 8:00 P.M. M.S.T.

9:00 P.M. C.S.T. 7:00 P.M. P. S.T.

TNURSDAY

9:00 P.M. E. S.T. 9:30 P.M. M.S.T.

8:00 P.M. C.S.T. 8:30 P.M. P. S.T.

Over Coast-to-CtHut- ff ABC-ColumbiaNttuork

i/

TRANSPORT Ptt.OT.
"When I notice
that 'all in' feeling
Cuming on, I light
up a Camel," re-
ports Maurice
Marrs. "And the
tiredness is quickly
relieved."

.1*^

Copyrl«hl. 1931.

R. J. Il4 yitiil U TubACco

{.'mnpmaf

CAMEL'S COSTLIER TOBACCOS

NEVER GET ON YOUR NERVES!

November i, 1934

Jobbers and Sub-jobbers Attention:

Merchandising Provisions Now Eff ctive

\EASH take notice that by an order dated 8ep-
tend)er 11, 1J);U, the Aihninistrator tor Indus-
trial Kecovery has made etTective the provi-
sions of the (iuar Merehandisini? Phm set
forth as Schedule 1 and made a part of tlie CVxles of
rair Competition for the (^i«»ar Manufaeturini» Indus-
try, the \\holesale Tobacco Trade and the Ketail To-
bacco Trade. A copy of the administrative order and
a copy of the Ci-ar Merchandising Plan are enclosed
herewith.

Under the (loar :\Ierchandisini» Plan each ci^ar
manufacturer (other than ci.uar manufacturers who
<ell exclusively and directly to the coTisumer) is re-
(luiied to record with National Tobacco ( ouncil, Inc
the minimum sales ])rice at which each cii»ar of his
manufacture is intended to be sold at retail (exclusive
of any liovernmental tax or charge thereon recjuired to
be i)aid by the jobjjer or retailer) and also to record
with the council the discounts and credit terms to be
allowed by him on all sales to retailers, accredited ci^^ar
jobbers, service jobbers and drop shipment purchasers.
All jobbers and sub-jobbers are similarlv re(|uired
to record the discounts and credit terms to i)e allowed
ui)on all resales by them at wholesale. Your attention
IS called imrticularly to Part "H" of the Merchandis-
ing Plan which descril)es in detail your ])rincipal obli-
.irations and the maximum discounts and credit terms
which you may allow.

You will note that each jobber is retpiired to record
the discounts ui)on all resales of ciuars which he may
in his discretion make to sub-jobbers. If you do not
make any sales to sub-jo]»bers it will be unnecessary
for you to record any discounts as far as sub-jobbers
are concerned. If and when you do ileal with sub-
jobbeis you are required to record vour discounts to
sub-jobbers.

In any event, each jo])ber and eacli sub-jobber must
record with the council the discounts and credit terms
to be allowed u]>on all sales of ciirais to retailers.

Blank forms, a supply of wliich estimated to meet
Tonr requirements is enclosed herewith, have l)een ])re-
pared for the report inir and recording'- of a schedule of
your discounts to retailers and to sub-jobl)ers (if you
deal with sub-jobbers) on each shape np size of each
brand of ciirars handled by you, and the credit terms
established by you with respect to the same. If the sup-
ply is inade«juatc, additional forms can be secured upon
written re<piest by mail or wire or personal application
to the council.

Pnder the Uii^ar Merchandisinj; IMan no jobber is
permitted to irrant to a sub-jobl)er or a retailer any
discounts or credit terms exceeding the discounts which
such jol)ber shall have received from the manufacturer.
If, therefore, you are a jobl>er you should have before
you in prei)arin,tr your reports a copy of the schedule of
discounts recorded with the council by the manufac-
turer of each brand of cigars which you handle.

Tile Cigjir Merchandising Plan similarly provides
that no sub-job]>er may grant to a retailer any dis-
counts or credit terms exceeding the discounts from the
retail price which such sub-jobber shall have received
from the jobber. If, therefore, you are a sub-jobber as
to any brands of cigars you should have before you in

making out your reports a copy of the schedule of dis-
counts recorded with the council bv each jobber with
whom you deal.

If you are a jobber purchasing directlv from the
nianuiacturer certain brands of cigars and a'sub- jobber
purchasing other brands of cigars from jobbers vou
should make rei)orts as to the first class as a jobber and
as to the second class as a sub-jobber.

Provided that you segregate your reports as al)ove
stated, you may include more than one brand of the
same manutacturer on the same rei)ort.

The discount reports must be completed in tripli-
cate. 1 he first and second copies must be forwarded to
^atIonal Tobacco (\)uncil. Inc., at its offices, KM) Kast
1^ orty-second Street, Xew York (^itv, N. Y. The third
copy IS to be retained for your files. These forms
ftliould j)e piepared on the typewriter and not })v hand
In t le event that they are ])repare(l ],v hand,* i^Iease
print— <Io not write— the data which yoii fill in.

These lilank forms have been prepared so as to
include only the essential information:

(a) The name and address of vour firm.

(b) Whether, as to the brand* referred to in (»ach
report, you are an accredited jobl)er, a service jobber
or a sub-jobber (to be indicated bv a cross in the proi)er
box in the form). * ^

(c) The name of the manufacturer.

(d) The name of each brand handled bv you.

(e) The breakdown of shapes and or sizes (front-
marks).

(f ) The respective discounts to be allowed bv vou

on all sales to retailers. * *

(g) The respective discounts to be allowed bv you
on all sales, if any, to sub-jobbers. If vou do not deal
with sub-jol)bers you need not fill in this column.

(h) The cash discount and terms of sale (not ex-
ceeding 2 per cent.). The appropriate blank in the
torm should })e filled in so as to state the percentage of
the cash discount, if any, and the maximum period for
which you will allow such discount.

For record purposes and to enable the control and
check-up of the discount reports received from each
jobber or sub-jobber a transmittal form has been de-
signed, copies of which are supplied to vou. All dis-
count reports forwarded to you for recording should be
accompanied by the first copy of this transmittal record
j)roperly filled in.

The discounts filed with the Council must be held
strictlv confidential, and may in no wav be divulged
until they shall have become elTective. This obliiratlon
of secrecy a|)plies equally to the recording party, who,
you will notice, is required, in connection with the re-
cording, to agree that until the discounts recorde<l by
him shall have become effective he will not disclose any
information concerning the same.

The recording of your discounts is not complete or
effective until vour reports have been actually received
by National Tobacco Council, Inc.. and have !)e<'n ac-
cepted for recording and filod by the Council. At the
earliest possible moment after the recording of your

{Cout'inucd an page 12)

The Tobacco World

Novembtr i, i<j;f

Resolutions of Retailers' Authority

William A. Ilolliiigsworth, chairaiaii, National
Code Authority for the Ketail To])acco Trade, calls
attention to two resolutions which have been adoi)ted
bv the Retail Tobacco Dealers' Code Authority. TIh-
first resolution deals with a slight amendment to the
Cigar Merchandising- Plan. The amendment ])rovides
that a live per cent, discount may be given on 10-cent
cigar jnirchases of 50 cents or more. This will allow
five per cent, discount on the five packs o*f lO-cent
cigars. Prior to the adoption of this amendment, ten
5-cent cigars could be sold for 48 cents, Avhile five
10-cent cigars had to be sold for 50 cents. As both the
5-cent and 10-cent cigar manufacturers ])ack 50-cent
packages, the 10-cent manufacturers felt they were be-
ing discriminated against; thus, the change as set forth
by the amendment.

The second resolution entails contemplated action
bv the retail dealers of the count rv airainst any cigar
manufacturer who violates the Cigar Manufacturers
Code and the Cigar Merchandising Plan embodied in
the Code.

Kesolved, that this Code Authority hereby recom-
mends to the Administrator and to the Code Authority
for the Wholesale To])acco Trade and the Code Author-
ity for the Cigar Manufacturing Industry, the adop-
tion and ap])roval of the amendment of Part C, Section
1, of the Cigar Merchandising Phni, Schedule T, an-
nexed to the Codes for the Retail To))acco Trade,
Wholesale Tobacco Trade and the Cigar Manufactur-
ing Industry, so that the same shall read as follows:

'* Section 1. In the case of all cigars imrchased
by retailers from cigar manufacturers, jobbers or sub-
jobbers in connection with which a retail price shall
have been recorded by the manufacturer as herein-
above provided, the retailer shall sell such cigars at
retail at not less than the retail price so recorded,
provided, however, that (1) in the case of the sale at
retail of multi])les of not less than five units at an
aggregate jmrchase price of not less than 50f a dis-
count may be allowed of not more than five per cent.
(5%) from tlie retail i)rice, and (2) in the case of
sales at retail of boxes of twenty-five (25) cigars or

more a discount of not more than eight per cent. (8%)
from the retail price may be allowed unless the cigar
manufacturer shall record with the Council and mark
a box price thereon involving a discount of less than
eight per cent. (8%) in which case the marked box
])rice shall be observed as a minimum, and (.S) the re-
tailer may give not more than one (1) pad of matches
for each unit sold, or five (5) pads i)er ])ox of twenty-
five (25) cigars or ten (10) pads per box of fifty (50)
cigars sold. In the case of any retaik»r granting a casli
discount upon all ])urchases made, any sales of cigars
shall be excluded in comi)uting the cash discount to be
allowed, or the amount of cash discount shall be in-
cluded in the ])rice of the merchandise sohl iu julditiou
to the minimum i)rices herein i)rovided.

Further Resolved, that the Chairman be, and
hereby is, authorized and directed to j)resent the fore-
going reconnnendations to the Administrator and to
take all action in his judgment necessary or desirable
to secure the early approval of said recommendations
by the Administrator.

Resolved, that this Code Authority hereby recom-
mends to the Administrator the adoption and a])proval
of the following amendment to the Code of Pair com-
petition for the Retail Tobacco Trade, to ])e adiled as
Section 10 of Article VII, entitled, **Trade I^ractices'^

Section 10 — Purchase of merchandise from Code
violators. It shall ))e an unfair trade practice for any
member of the Retail Tobacco Trade to i)urchase any
brand of cigars with respect to which the manufacturer
shall have violated the provisions of the Cigar Mer-
chandising Plan in relation to the filing of minimum
retail prices and discounts or any other merchandis-
ing provisions of the Code of Fair Com])etition for the
Cigar Manufacturing Industry^ relating to sales to
retailers.

Fi'RTiTER Resolved, fliat the Chairman be, and
hereby is, authorized and directed to present the fore-
going recommendations to the Administrator and to
take all action in his judgment necessary or desirable
to secure the early approval of said reconmicndations
by the Administrator.

Retailers to Get Code Blue Eagles

William A. Hollings worth, cliairman of the Na-
tional Code Authority fnr ;he Retail Tobacco Trade,
made the following announcement on the distribution
of Code insignia (Blue Kagle) :

The retail tobacco Code Authority will commence
distribution of the Blue Fagle to all retail tobacco es-
tablishments in comj)liance with all the provisions of
the Code of Fair Comi)etition for tlie Retail Tobacco
Trade. Only '* retail tobacco establishments'' so quali-
fied may apply for their Code insignia; that is, those
whose business in tobacco products amounts to at least
50 per cent, of the gross volume of their total sales.

The j)rivilege of displaying the Code Blue Eagle
will be extended only to those retail tobacconists who
are in strict compliance with all the merchandising and
labor provisions of the Retail Tobacco Code. Mem-

to

bers of the trade so (pialified may apply for their Blue
Eagle by writing in to the National Code- Authority,
1148 Woolworth Buildintr, New York City, stating
clearly their address, citv and State, or bv filling out
and mailing the regular N. R. A. application form for
the Blue P^aglo.

Those operating mf)re than one tobacco establish-
ment are entitled to i-eceive one Code insignia for each
store. All insignia will be nuirkcMl with serial numbers
and every retail tobacco establishment will l)e regis-
tered under a different num!)er. Thos<' who receive
copies of the Blue Eagle in response to their applica-
tion for same are re<piested to fill out the self-addressed
card attached to each endjlem and to return same
promptly to our office.

The Tobacco World

News From Congress

_ 'AND

Federal
Departments

U.««rfl«.

From our Washington Bureau 62ZAlke Bwlwng

O IMMEDIATE action is in prospect with
respect to applications for relief from imports,
filed under Section 3 (e) of the Industrial Re-
covery Act hy manufacturers operating under
codes, whose increased costs have made it possible for
foreign competitors to enter the domestic market
heavily. A number of complaints are pending before
the National Kecovery Administration, including one
from the cigar industry, directed against Philippine
cigars.

Preoccupied with flic negotiation of reciprocal
trade agreements with a nund)er of countries, the Gov-
ernment is moving l)ut slowly with resi)ect to com-
plaints against imports, a]>parently intending to delay
them until the new treaties have been consummated and
it can be learned whether they make any change in the
situation.

While this does not, of course, apply to the Philip-
pine Islands, it is likely that little time will be available
in the near future for consideration of the cigar indus-
try's complaint. No action is expected in Washington
until after the beginning of next year, at the earliest.

CS3 C?3 Ctj

EW THEORIES for adjusting the interna-
tional trade situation, involving abandonment
as soon as possible of the reciprocal trade plan
and substitution therefor of a highly Hexible
tarifT, have been laid before the administration for con-
sideration, it lias been learned. The theory contem-
plates the increasing of imj)orts sufficiently to balance
the international account without heavy gold shipments
or loans abroad, bv the removal or reduction of tariffs
in all cases in which no additional unemployment would
result.

Conunodities on which tariff action of this nature
would be taken inelude nnn-comi)etitive products, those
on which rates are inetfective, those on which tariffs
are imposed for reveime i)urposes only, those which are
imported to supply the bulk of the domestic demand
and goods requiring types of craftsmanship not devel-
oped here.

If such reductions <lo not prove adequate to encour-
age importations to the degree desired, proponents of
the plan would lower the rates on other commodities,
safeguarding against excessive unemployment by limit-

November i, 1934

ing the volume to be admitted, and would have the
Government undertake the payment of a *' dismissal
wage" to labor which might be thrown out of work as
a result of taritT reductions. It is contended that such
labor would not be long unemployed but would quickly
be absorbed by other industries.

Going still further, proponents of the plan w^ould
have all tariff rate adjustment turned over to the Tariff
Conunission, whose orders fixing import duties would
be subject only to the approval of C'ongress.

Reciprocal trade agreements, it is held, should be
employed only on condition that they be used to in-
crease world trade rather than divert it to this country
from other nations.

As a further means of accom]>lishing stabilization,
it is proposed that the war debts be immediately settled
through a lumi)-sum i)ayment made by transfer to this
country of American securities held abroad, to be pro-
cured by debtor governments from their nationals in
exchange for their own issues. It is suggested that the
amount of settlement would be in the neighborhood of
20 per cent, of the face value of the debts.

Cj3 Ctj Ct3

OSSIBILITIES of further devaluation of the
dollar are seen in AVashington in the recent
expression by President Roosevelt of his views
on i)rices. Although holding the belief that
some prices have resj)onded to the revivit'ying influence
of the recovery program, the President revealed that
higher prices generally are felt by the administration
to be desirable, but that it was not his aim to fix the
level of any i)articular year as a desideratum. Rather,
it is believed, the price level should l)e a composite of
those of several years, possibly ranging from 1924 to
in2S, representing the most favorable position of the
various major products.

The President's explanation is seen as a sudden
reversal of Government policy, following as it did close
upon the heels of an address by Donald R. Richberg,
secretary of the Executive Council, in which he inti-
mated that prices already were too high.

While the President did not make it clear what
steps he might have in mind to bring about an advance
in the price level, it was indicated that the quickest way
to do so would be by further devaluation of the dollar,
possibly close to the limit of 50 cents fixed by Congress.

Just Enough Menthol to Cool and
Soothe Without Destroying
The Natural Tobacco Flavor

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

!?.f^F./i ,?.V.^9^- V^'li«"^'i"!^- '^V. Va President

JLLILS LICHTLNSTLIN. New York, N. V Vice-President

WILLIAM BEST. New \ork, N. Y. ......,,..*. Chairman Executive Committee

MAJ. GEORGE W. HILL. New York, K. Y Vice-President

GEORGE H. HIMMELL. New York. N. Y Vice President

H. H. SHELTON. Washington, U. 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. 541 Madison Ave., New York City

RETAIL TOBACCO DEALERS OF AMERICA. IXC.

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y President

CLIFFORD N. DAWSON. Buffalo. N. Y Executive Vice President

JAMES C. THOMPSON, Chicago, III Treasurer

ASSOCIATED CIGAR MFRS. AXD LEAF TOBACCO DEALERS

JOHN H. DUYS. N'ew York City President

MILTON RANCK, I^ncaster, Pa First Vice-President

D. EMIL KLEIN. New York City Second Vice-President

LEE SAMLELS, New York City Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. IS) Grumman Ave., Newark. N. J President

ALBERT FREEMAN. New York. N. Y First Vice-President

IRVEN M. MOSS. Trenton. N. J Second Vice-President

A. STERNBERG, Newark, N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE President

SAMUEL MAGID, 2y01 N. Mervine St.. Philadelphia, Pa Secretary

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC

E. ASBURY DAVIS. Baltimore. Md President

JOSEPH KOLODNY, 200 Fifth Ave.. New York. N. Y Secretary

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN President

HERMAN H. YAFFE. 301 Fox Building. Philadelphia, Pa ^creUry

WHOLESALERS' BUDGET APPROVED

The National Iiidnstrial I\*ecovorv Hoard has ai)-
proved a hud-ot of $410,150 t'oi- tlu' wholesale tobacco
trade to cover a period from June i), UKU, to June 15
19o5. *

The following' conditions are imposed: (A) $30,000
to cover the Code Authority's ])ro])ortionate sliare of
the exi)enses of the National Tobacco C\)uneil, Inc., is
allowed only if the cr)uncil submit its budi>et for ap-
proval; (B) the item of $15,000 to cover travelin<»- ex-
ju'iises for the (Vnle Authority, be reduced to $uCoOO;

(C) regional Code Authority l)udoets be itemized, ami

(D) that the Code Authoiity submit (puirterlv and an-
nual rei)orts of expenditures certiiicd to by* a public
accountant.

Members of the industiy will contribute one-tenth
of one per cent, on o-ross sales of cii^ars, and one-twen-
tieth of one ])er cent, on i»ross sales of ci<iarettes, to-
bacco and plug- tobacco.

BAYUK EARNINGS ON UPWARD TREND

BAVrK CrnArs, Inc.— "Reports for tlie «piarter ended
Septeml)er :50th net i)ro(it of $:]07,52L* after dej)recia-
tion. Federal taxes etc., equal after dividend re(piire-
nieiits on the 7 per cent, preferred stock to $'J.7S a share
on 1)4,4S5 shares of no ])ar conmion stock outstanding?
at the end of the «piarter. This compares with $:ni,7;^0,
or $*J.S1 a share on {>4,5.*)(; common shares in the })re-
vious quarter and $170,:U(;, or $1.:'.:{ a share on J)0,851
common shares in the Septeml»er <piart(M" of VXV^. For
nine UHMiths net protit was $7;U,0i:J after diarizes and
taxes, e<|ual to $(;.:n a share on 04,4S5 shares of com-
mon, compared with $51!Mh;2, or $4.04 a share on 90,851
ctmimon shares in the first nine months of VXVX

CIGARMAKERS GET INCREASE IN YORK CO.

^ The Labor T?elations Board on Saturday awarded
a 25 cents pei- thousand increase in ]»ay to York County,
Pa., ciuaiiiiakers for live-cent cigars.

The l)oai(l decided that the rat»' for three-for-ten
cigars should remain unchami((l.

The new basic rate is to ))e $r».45 per thousand.
The rate for three-for-ten 's is to remain at $5.50. The
York Cruinty Cigar >ranufactur<Ms' Association and
tln' Cigarmakers" rnion submitted the issue to the
board for arbitiation, and aureed to accept its findings.
The board reiidei'ed its decision in the light of a study
made bv the I>U!-eau of Labor Statistics.

JOBBERS AND SUB JOBBERS, ATTENTION

(Cont'iunod fn,m Page 3)

reports you will receive acknowledgment of such re-
cording which will act as a notiticaticm to you of the
effect iveness, at the time stated in said acknowledg-
nH'ut. of your discounts and crcMlit tei*ms as recorded,
and that in accordance' with th<' Coth* of Fair Compe-
tition you must strictly (»bseive and a<lhere to the dis-
counts and terms so recorded.

In no event, however, will any action of the council
in acce))ting or recoidinu: your repoits or in seinling
such acknowledirment be <leemed to indicate that vour
re])orte<l discounts are in conijiliance with tlie Cigar
Merchandisim; Plan altliouiifh the council reserves the
right to advise you, if possible, of any eirors in your
re))ort or any dejjarture in your discounts from those
which are permissible.

The Tobacco World

DON'T MISS

D

r

>|

«•

r

I

>r

AND

RADIO'S SENSATIONAL LAUGH TEAM

WITH JOSEF BONIME'S ORCHESTRA AND GUEST STARS

Don't miss the sales theyVe building for

PICK and PAT and

Baltimore WFBR

Boston WEEI

Buffalo WBEN

ChicaKO WMAQ

Cincinnati WSAI

Cleveland WTAM

Denver KOA

Dei Moines WOC-WHO

Detroit WWJ

Duluth WEBC

Sartford WTIC

BONIME

Friday

Saturday

Friday

Friday

Friday

Friday

Monday

Friday

Friday

Tuesday

Friday

'S ORCHESTRA are presented weekly

Kansas City WDAF

Los Anceles KNX

Madison WIBA

Milwaukee WTMJ

New York WEAF

Omaha WOW

Philadelphia WFI-WLIT Friday

Pittsburgh WCAE Friday

Portland, Me. WCSH Friday

Portland, Ore. KEX Wednesday

Saturday

Tuesday

Wednesday

Friday

Friday

Friday

SEE YOUR LOCAL EVENING PROGRAM LISTINGS

over the foil

Providence

Richmond

St. Louis

St. Paul

Salt Lake City

San Francisco

Schenectady

Seattle

Spokane

Washington

Worcester

owing

WJAR

WRVA

KSD

KSTP

KDYL

KGO

WCY

KJR

KUQ

WRC

WTAG

Stations:

Friday

Tuesday

Friday

Monday

Tuesday

Friday

Friday

Tuesday

Tuesday

Friday

Friday

DILL'S BEST

AND

I

Cigars Still Up 102 Millions in 9 Months

Cigars :

Class A—

United States
Puerto Kieo .
Philippine Is.

Total ...
Class B—

United States
Puerto Rico .
Philippine Is.

Total ....

1 st 9 Mos.
Cal. Yr. 1934

— Decreatse

-h Increase

Quantity

.. 2,873,992,.365 + 76,814,82.3

42,019,620 -h 2,593,975

14r),.309,83r) + 2:),744,2(;o

3,061,321,820 -f- lor),l.")3,060

34,141,796 4.

1,267,2(K) —

329,501 -f-

14,129,143

l,01i>,.350

181,301

35,738,497 + 13,29s,094

Class V—

United States
Puerto Rico .
Philippine Is.

Total . . .

381,902,012 —
52I>,200 f
111,368 —

11,392,238
59,920
43,44s

382,542,58( I — 11 ,375,7(56

Class D—

United States . . .

Puerto Rico

J^hilippiiie Is. , . .

26,825,094
1,500
1,250

1 l + i

1 ;

4,156,423

1,000
126

Total

26,827,844

4,155,549

Hass 11—

United States . . .

Puerto Rico

Philippine Is. ...

2,151,974

645,145
157

Total

M, 1 •)•*, 1 •>«/ — ~"

645,30*J

Total All Classes:

United States
Puerto Rico .
Philippine Is.

3,319,013,241 4-

43,817,520 -f-

145,752,719 -f-

74,750,162

1,642,545

25,881,830

Grand Total . 3,508,583,480 + 102,274,537

November j. /yf^

Little Cigars:

United States
Puerto Rico .
Philippine Is.

175,522,240
1,791,000

7,800

+ 13,152,987
— 833,000

-f 7,800

Total 177,321,040 + 12,327,787

Cigarettes :

Ignited States .
Puerto Rico . . .
Philippine Is. .

Total

Large Cigarettes:
United States .
Puerto Rico ...
Philippine Is. .

Total

SnufT (lbs.):

All L . S

Tobacco nifd. (lbs:) :

United States . .

Philippine Is. . .

Total

. 95,956,286,986
3,114,450
1,529,420

+8,003,915,956

-h 238,850
-f 505,500

. 95,960,930,856 +8,004,660,306

87,469,285

426,000

200

87,895,485

28,320,163

234,963,250
23

+ 85,557,150

— 239,000

— 4,737

+ 85,313,413

+ 786,966

— 1,092,764

— 146

234,963,273 — 1,092,910

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name _

Street No.
P. O.

-State

'3

c/o^L-ge^

Established 1886

"BEST OF THE BEST"

Manufactured

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Florida

OUR HIGH-GRADE NON-EVAPORATINO

CIGAR FLAVORS

Make tobacco melCow and smooth In charactet
and impart a most palatable flavor

FUYORS FOR SMOKING tnd CHEWING TOBACCO

Write for List of Flavors for Special Brands
EKTUN. AIOIIATIZEK. BOX FLAVOKS. PASTE SWECTENEKS

FRIES Sl BRO., 02 Reade Street. New York

•A^vtyji^PAtv^jtva^ivfttrASovio^^

Olassified Column

The rate foi this column is three cents (3c.) a word, with
a minimum charge oi seventy-hve cents (7Sc.) payable
strictly in advance

ri:«vl'«r.^rsfl^r4^1^/s^>4xlly»Y«Y•Vfc^^^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580. "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while line.
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3-story and concreted basement building adjacent to P. R. R.
freight station in York, Pa. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. Sec A. Kaufl-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Pla. Write them for particulars today.

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 ftllowance of $2 will be made to members of the TobscM 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.

REGISTRATIONS

COLWOOD:— 46,374. For all tobacco products. Consolidated

Litho. Corp., P.rooklN n, X. Y.. October 6, 1934.
DAVID BREWSTER :--46,375. For cigars. The Tarr Co.. Chica-

go. III., October 10, 1W4.

SIR ATTERON:-46,378. For cigars. Cuesta, Rey & Co., Tampa,
Fla.. October 12. 1934. ^

K-O-Y: — 46,380. For all tobacco products. Yocum Bros.. Readini?
Pa., September 27, 1934.

TRANSFERS

NEMO: — 660 (U. S. Tobacco Journal). For cigars. Registered
September 4, 1883. by Winhold & McAuley, Albany, N. Y. Through
mesne transfers acquired by Dearstyne Bros. Tobacco Co.. .Albany,
N. Y.. and re-transferred to E. Popper & Co., Inc., New York, N.
Y.. October 9. 1934.

BESSIE McCOY: — 16,583 (Tobacco World). For cigars, cigarettes,
cheroots. chewiiiK and smoking tobacco. Registered November 7,
1908, by .American Litho. Co.. New York, N. Y. Transferred by
Consolidated Litho. Corp.. Brooklyn, N. Y.. who had taken over
the cigar label department of the original registrant, to Nat Sher-
man. .New York. \. Y., (Jct««ber 10, 1934.

THOMAS MAY PIERCE :~23,970 (Tobacco World). For cigars,
cigarettes, cheroots, stogies, chewing and smoking tobacco. Regis-
tered February 2i, 1912. by Pen. Cigar Mfg. Co., Philadelphia, Pa.
Through mesne transfers acquired by Wm. W. Muehlhauser,
Quakertown. Pa., and re-transferred (for cigars only) to Benjamin
Shils, Philadelphia. Pa.. October 5, 1934.

DESCHLER MONOGRAM:— 46,379. For cigars. Regi.stercd Octo-
ber 9, 1934, by Kiefer-Stewart Co.. Indianapolis, Ind. (This cer-
tificate is issued upon presentation made to us that the trade name
or trade-mark herein specified, though not heretofore registered in
any of our Affiliated Bureaus, has been in use by The Louis G.
Deschler Co., an Indiana corporation, for many years, and that the
business and good will, together with the trade-mark herein men-
tioned, have been acquired by the Kiefer-Stewart Co., Indianapolis,
Ind.)

LA MODE:— 5550 (U. S. Tobacco Journal). For cigars. Registered
February 4. 1886, by Kohn Bros. & Co., New York, N. Y. Through
mesne transfers acquired by the American Box Supply Co., Detroit,
Mich., and re-transferred to Yocum Brothers, Reading, Pa., No-
vember 29. 1924.

SIR DAVID: — 41,287 (Tobacco Merchants .Association). For cigars,
cigarettes, etc. Registered .August 2i, 1919, by Pasbach Voice
Litho. Co.. New York. N. Y. Transferred by Consolidated Litho.
Corp.. Brooklyn. \ \ , successor- to the registrants, to Bobrow
Bros., Philadelphia. Pa.. October 22. 1934.

CLUB CAR: — 17,561 (Tobacco World). For cigars, cigarettes, che-
roots, chewing and smoking tobacco. Registered March 31, 19(»,
by the American Litho. Co.. New York. N. Y. Transferred by the
Consolidated Litho. Corp.. Brooklyn, N. Y., successors to the cigar
label department of the registrant, to the Federal Cigar Co., Red
Lion. Pa.. October 24. 19.14.

PRINCESS MARION :— 46,383. For cigars. Registered May 18,
1934. by Fdward 'i Davis and Barny Beachkofsky, Chicago, 111.
(This certificate is issued upon pre.sentation made to us that the
trade-mark or trade name herein specified, though apparently not
heretofore registered in any of our .Affiliated Bureaus, has been in
use for many years by Henry E. Ackerburg, Chicago, 111., and trans-
ferred to Edward G. Davis and Barnev Beachkofsky, Chicago, III.,
March 17, 1934.)

T

NOVEMBER 15, 1934

LIBRARY

KCOBi ve •

ffl

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
AUTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the

AUTOKRAFT BOX CORPORATION.

Phi la., Pa.
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION r^!^°''^' ^rT,

Chicago, III.
Lima Ohio Detroit, Mich.

A Nat i o i\ Wn dc Sc rVi c c Wheeling. W. Va.

mm

2-*

iiiniinmiiiniiiniiininTTmTrrm

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA.

After all
nothing satisfies like*
a good cigar ^

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box—and it's
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING

Remember thar Regardleu

THE BEST CIGARS

ARE fACKCD I

WOODEN BOXES

CICARSX

n% of Price I

ARS I

XES_/

THE TOBACCO WORLD

Vol 54

NOVEMBER 15. 1934

No. 22

T was not to be expected that the merchandis-
ing provisions of the cigar code, establishing
fixed prices below which cigars could not
legally be sold, would become operative witli-
out protest. Efforts were made to prevent the ap-
proval of these provisions, which did not become effec-
tive until months after the remainder of the Code
went into effect. They were finally approved and be-
came law on October 29. Four days later, on Novem-
ber 2, these merchandising provisions were attacked
in the United States District Court in Philadelphia.
The action took the form of a direct attack on the
constitutionality of N. R. A.

Two companies described as drug chains. The
Nevins Drug Store Co., and the Sun Ray Drug Co.,
filed suit against twentv-three defendants, including
Donald G. Richberg, head of N. R. A., United States
Attorney General Homer C. Cunmiings, and United
States Attorney Charles D. McAvoy, of the Philadel-
phia District, and the members of the Code Author-
ities of the tobacco industry in both Philadelphia and
the State of Pennsylvania.

Ctl Ct] [t3

II E contention is that Congress has no author-
ity to delegate to the President the powers
allowed in N. R. A. legislation, and, further,
if that delegation of authority could be jus-
tified as lawful, it could not be |)assed on to others,
and further, that the Chief Executive and N. R. A.
officials exceeded all legal authority in imposing codes
on industry. The ])urpose of the suit is to eliminate
the cigar merchandising plan, on the principle that
these provisions grant a monopoly to cigar manufac-
turers, and that the public will sutTer by being sub-
jected to a rise in the prices of cigars.

Cj3 Cj} Cj]

II K plaintiffs ask that N. R. A. authorities
be enjoined from instituting criminal pro-
ceedings against them until the Court decides
on the legality of the plan, which, they claim,
bestows ujion the cigar manufacture r unlimited powers
in the fixing of retail pricos, thus depriving cut-rate
stores of the privilege of passing on to customers the
savings which they are able to make as a result of large
volume purchases. As is well known in the trade, the
retail and wholesale prices are set by the manufac-
turers, under the provisions of the Code. There is a
uniform wholesale price and a uniform retail price
for each brand of cigars.

It is the complaint of the plaintiffs that the main-
tenance of this system means the destruction of their

])usiness, which is based on low prices, resulting from
their volume buying.

Retail cigar merchants are the people most vitally
interested in this case. It was they, and not the
cigar manufacturers, who not only initiated the move-
ment for fixed prices for cigars, cigarettes and other
tobacco products, but never let up in their fight until
these established fixed prices became an integral part
of the code of fair practice. So, while the suit is, on
its face, an attack against the constitutionality of N.
R. A., it is, in actuality, an attack on the business of
retail cigar merchants.

Ct3 C!3 Ct3

HERE is nothing to be surprised at, however,
in the fact that such a suit has been brought.
There is an essential difference between the
business of a retail cigar merchant and the
business of the two chain stores. The essence of the
chain store's business is price-cutting. It is built en-
tirely on the ability, and willingness, to sell at a price
lower than the established price of the product. While
the two concerns are described as drug chains, the fact
is that their business is not confined to drugs or to-
bacco products, but is spread among a large number
of products not of large bulk, whose prices are fairly
well established in stores selling <hose products, but
which the chain sells below those prices.

Ct3 Ct) C!3

S the plaintiffs claim, the whole reason for
their existence as cigar merchants vanishes
with the establishment of fixed prices for
cigars. If there should be a similar price-fix-
ing system for drugs and the other products which
they handle, then the foundation of their whole busi-
ness would crumble. Because their business is essen-
itally the j)rice-cutting business.

— ft — — ft — — ft —

Ct3 Ct3 Ct3

UT it would be folly to charge this dissolu-
tion of their business to the manufacturers.
The retailers w^ould be the ones most inter-
ested in bringing this about, just as they were
primarily responsible for the price-regulation of to-
bacco products. And the retailers would be the only
ones to profit from such a universal establishment of
selling prices, as they are the only ones now bene-
fitting from the operation of the merchandising pro-
visions of the cigar code.

The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation: Hobart B. Hankins. President and Treasurer;
Gerald B Hankins Secretary. Office. Z3t> Chestnut Street. Philadelphia. Pa. Issued on the 1st and 15th of each month. Subscriptions, avail-
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

Harry Buckley Passes

ARRY W. BUCKLEY, President of the Auto-
kraft Box Corporation, President of the Na-
tional Cigar Box ^lanufacturers Association,
and member of the Cigar Container Code Au-
thority, died as a I'esult of third ck\j»ree burns in the
City Hosi)ital, in East Liverpool, Ohio, shortly after
9 P. M. on Thursday, November 8th. The accident
occurred about 11 A. !M. that dav.

Mr. Buckley, accom})anied ])v AV. D. Rosenberger,
of Chicago, 111., a member of the Executive Conmiit-
tee of the Autokraft Cori)oration, left Lima on Thurs-
day morning to visit the corporation's plants in Wheel-
ing, AV. Va., and Philadelphia, and also the corpora-
tion's Eastern offices in Ilellam, Pa.

Several miles outside of East Liverpool, while
climbing a steep grade, the car skidded on a sharp
curve, struck a guard post which punctured the gas
tank, careened across the road irito a ditch and im-
mediately burst into flames. Mr. Buckley was driv-
ing.

Mr. Rosenberger was first out of the car, and
called for help to rescue Mr. Buckley. A passing mo-
torist came to his assistance and Mr. Bucklev was

ft

dragged from the car. A truck came by and Mr. Buck-
ley and Mr. Rosenberger were taken to the City Hos-
pital in East Liverpool, O.

Mr. Buckley sulTered third degree burns, while
Mr. Rosenberger escaped with first degree burns of
the face (blisters) and second and third degree burns
of the hands which will necessitate skin-grafting.

Services for Mr. Buckley were in Lima, O., on
Saturday, November 10th with interment in Wood-
lawn Cemetery.

A special car attached to the Manhattan Limited
on Fridav carried executives of the Autokraft Box
Corporation and the National Cigar Box Manufactur-
ers Association, as well as members of the Cigar Con-
tainer Code Authority, to Lima.

Mr. Buckley was born in Leipsic, 0., May 11, 1880.
He served in the L^nited States Army in the Medical
Corps and for some time was stationed in Alaska.

Later he became a pharmacist, and by one of those
turns of Fate became interested in the cigar box busi-
ness through a meeting with Henry (J. Ritter, of the
Ritter Cigar Box Company now of Detroit, Mich., but
then of Minster, O. A partnership was entered into
and the cigar box business was finally moved to De-
troit.

After a few years this partnership was dissolved
and Mr. Buckley entered the cigar box business in
Deshler, O.

In 1920 when the National Cigar Box Manufac-
turers Association was formed, Mr. Bucklev was
elected president and continued in this office until his
untimelv death.

»

During this period, in the face of a declining cus-
tomer industry, he found it advisable to consolidate
his business with that of the Globe Box Company in
Lima, O., and moved with his family to that city.

In January, 1930, a merger of cigar box plants
throughout the country took place and the Autokraft
Box Corporation was formed, with a capital of $2,000,-
000. Mr. Buckley was elected president of this or-
ganization, and was retained in this office until his
passing.

HARRY W. BUCKLEY
Bom May 11, 1880; Died November 8, 1934.

Mr. Buckley at one time was also ])resident of
the Western Cigar Box Manufacturers Association,
the existence of which dates back to 1899, the oldest
trade association in the cigar container field.

In December, 19.33, when the Code of Fair Com-
petition for the Cigar Container Industry had been
approved, and the members of the Cigar Container
Code Authority were elected, the Western Cigar Box
^Lanufacturers Association nominated and elected Mr.
Buckley to the Code Authority ;is their representa-
tive.

In addition to his widow, Mr. Buckley is sur-
vived by a son Harry William Buckley, Jr.," a senior
at Ohio State University at Columbusj O.

McDonnell to run own store

J. McDonnell, who has been associated with the
old established firm of Yahn & McDonnell, distributors
of high grade cigars and tobacco products and acces-
sories, will oi>en his own cigar store at the north-
east corner of Fifteenth and Chestnut Streets, about
December 10th, under the firm name of the McDon-
nell Company. "S\x. McDonnell will feature a full line
of only high grade cigars, tol)acco i)ro<lucts, pipes
and accessories.

The Tobacco World

Tobacco Outlook for 1935

HE OUTLOOK for most types of tobacco is for
reduced stocks a year hence and for further
improvement in the supply situation provided
production in 1935 is held in line with require-
ments. Domestic consumption of several tobacco prod-
ucts has shown improvement during the i)ast year and
exchange rates are favorable to the exportation of
American tobacco. Exports to October, 1934, continued
to be small, though exceeding the exports for the same
months in 1933. In spite of the improvement that has
occurred supplies of several types of tobacco continue
to be large when compared to the present rate of con-
sumption. This is especially true for hurley, the pro-
duct icm of which has not been reduced enough to result
in a materially reduced carry-over by October, 1935.

The total tobacco acreage grown in the United
States in 1934 was estimated at 1,364,500 acres, a very
large j)ercentage of which was under contract with the
Agricultural Adjustment Administration. The con-
tracts ])rovided for ditTerent rates of reduction for the
sevei'al kinds of tobacco, averaging around 30 per cent.
The 1934 acreage was the smallest total acreage in the
United States since 1921 and the second smallest since
1914. Preliminarv estimates in 1934 indicate vields
above average for most types of tobacco, as a result of
favorable weather conditions. The average yield for
all types combined was estimated at 800 pounds per
acre, which is higher than anv vield for the last eleven
years. For some types, notably hurley and fire-cured,
the 1934 ])roduction of contracting growers is reported
to be materially in excess of the quantity allotted to be
sold under the contracts. The extent to which this ex-
cess production is nuirketed will infiuence the size of the
carry-over of these tyjjes into the next marketing
season.

Consumption of tobacco products was reduced dur-
ing the de])ression ; cigarette and cigar consumption de-
creased materially; ])ipe smoking and the use of hand-
rolled cigarettes increased: snuiT consumption de-
creased; and chewing continued to decline as it has
done for manv vears. During tin* last vear, there was
an increase in tin* consumption of all classes of to-
bacco produets, tli<* j)rincipal increase boing in ciga-
rettes and cigars.

On the other hand, American tobaccos are contin-
uing to meet with increased competition in foreign
markets. A large quantity of tobacco formerly pur-
chased from the United States has ])een replaced by
competing foreign types. The ])roduction of tobacco
in seven countries, which before the World War took
approximately 45 per cent, of the leaf tobacco exported
from the United States, increased from an average of
25(M)(M),00() jmunds for the three years 1918-1920 to
451,000,000 pounds for the three years 1930-1932. This
expansion resulted largely from high foreign tariffs,
policies of government tobacco monopolies in foreign
coimtries, and unfavorable exchange rates.

From 1!M!) to 1!)29 nearly 45 per cent, of the pro-
duction of tobacco in the Cnited States was exported.
During the twelve months ended September 30, 1930,
exports t(Maled (;8H,(M)n,000 ]K)unds (farm sales weight)
from which level exports dropped successively to 640,-
OlMMMM) pounds for the crop year 1930-1931, 480,()00,0(X)
pounds for 1931-1932, and 437,000,000 ])ounds for the
twelve months ended Sei)teml)er 30, 1933. Exports in
the latter years, however, were materially affected by

the unusually short crop of 1932. During the twelve
months to September, 1934, following the large crop of
1933, exports amounted to only 500,000,000 pounds,
equivalent to 30 per cent, of the'total 1933 production.
The tendency toward self-sufficiency on the part of
many countries and the high prices now prevailing in
the United States for some types of tobacco, may fur-
ther encourage the production and consumption of com-
peting foreign types. However, if the improvement
which took place last year in exchange rates is main-
tained during 1935, it may partially offset some of these
influences.

With a very large j^ercentage of the tobacco acre-
age of the United States under contract with the Agri-
cultural Adjustment Administration for 1934 and 1935,
it is evident that the policy of the administration, to-
gether with any extension or modification of the To-
bacco Control Act, nuist be considered as a principal
factor in determining acreage and x)roduction in 1935.
In the past substantially inq:)roved prices for tobacco
have usually caused large increases in production and
lower prices the folloAving year. Except for the control
measures to be applied to tobacco in 1935, plantings of
most types would probably be greatly increased. Not-
withstanding the progress made in the liquidation of
surplus tobacco stocks in 1934, a general expansion of
production does not appear justified in 1935.

FLUE-CURED TOBACCO— TYPES 11, 12, 13 AND 14

The flue-cured tobacco situation shows consider-
able improvement compared with a year ago. A moder-
ate increase in acreage seems justified in 1935 in order
to obtain a ])roduction equal to consumption, thus main-
taining a total supply for the 1935-1936 marketing year
similar to that available for this season.

With July 1st stocks in the United States estimated
at 770,000,00() pounds (farm sales weight), and foreign
stocks of United States flue-cured tobacco estimated at
580,000,000 pounds, the total carry-over into the pres-
ent marketing season amounted to about 1,350,000,000
pounds. Carry-over, combined with the October 1st es-
timates of the 1934 production of 545,000,000 pounds,
makes the total supply of United States flue-cured to-
bacco for the current season 1,895,000,000 pounds,
which is 4.5 ])er cent, below the supply a year earlier
and 10 per cent, below the average of the last five years.
World carry-over, July 1, 1934, Avas approximately
105,000,000 pounds larger than a year earlier as a re-
sult of the large crop of 1933. This increase of carry-
over was more than offset, however, by the reduction
in the 1934 crop.

World consumption of United States flue-cured to-
bacco during the year ended June 30, 1934, showed
little change from that of the preceding year, being esti-
mated at 633,000,000 pounds, which was about 8 per
cent, below the average for the past five years. Domes-
tic consumption, which consists of about tw^o-fifths of
this total, increased nearly 5 per cent, during the year,
because of the increase in the use of cigarettes, but for-
eign consumption declined slightly. About 30 per cent,
of the total world consumption of flue-cured tobacco is
used in cigarettes in the Ignited States. Cigarette con-
sumption during 1934-1935 is expected to show some
further increase, but the consumption of other manu-

{Covf'niucfl on Pofjc Ifi)

November 1$. WS4

MIA.

STUDENTS SEE PHILLIES MADE

(iKOl^P of tweiitv Ponn State students went
tliroui»li the Bayuk plant recently and watched
with studious interest the manufacture of
Bayuk Phillies throu,i»:h all the stai^es from the
arrival of the leaf to the shipment of the completed
ciijars. Aside from the manifold ciu:ar manufacturing
operations, the youn«i: men seemed more than ordinarily
interested in the new machine for wrappinu: packages
by a triple com))ination i)rocess, visions of the Christ-
mas holidavs beinu: aroused bv the laru:e number of
Yuletide wrapi)ings . . . The Philadelphia Foremen's
Club, whiclL meets regularly at the Germantown Y. M.
C. A., also made the Bayuk tour of insi)ection recently
. . . E. G. Foden, Portland, Me., is building a nice
business on Phillies, as is evidenced by regular ship-
ments . . . H. D. Soyster, Johnstown, Pa., territorial
manager, was a recent visitor at headquarters, arrang-
ing for additional shipments to his territory for the
remainder of tlie vear . . . The American Confection-
ery Co., Norwich, Conn., is nmking nice strides in the
sales of Phillies and recentlv closed a successful drive
on the brand, having been assisted by C. E. Miller,
Bayuk salesnuni . . . Harry Kenyon, Wilmington, Del.,
is doing a good job in ])lacing Phillies over his territory
and keeping after the factory to maintain the stitT ship-
ping schedule he has set . . .

TRY TO CATCH THEM

\RRY KICE, of the X. Rice Cigar Co., Pitts-
burgh, was a recent visitor to G. II. P. head-
(luarters at Third and Brown Streets, and was
enthusiastically optimistic over the outlook for
El Producto and La Azora in the Smoky City territory.
The cigar business generally is improving, he said, and
he was ])roud to re|)ort a wholehearted aece|)tance of
the merchandising provisions of the code there . . .
Two of the most active and energetic travelers in the
])rom()tion of the cii'jjr business as a whole arc Frank
P. Will, cxi'cutive vice-president, and I). A. Jenks,
assistant sales manai^er. If vou call at the home of El
Producto without telephoning in advance, the chances
ai<* very great that you will be greeted with the news
that either or both of them are somewhere out in the
territoi'v engaged in their never-ending work of pro-
motion of the business as a whole, and of G. H. P. sales
specifically.

Trade Notes

C. W. Saunders, of the Cortez Cigar Co., was in
town this week visiting the trade.

Steve Hertz, of the D. Emil Klein Co., manufac-
turers of the well-known Haddon Hall brand, was a
visitor at local distributors this Aveek.

John Wagner & Sons, Dock Street, distributors of
the Don Sebastian clear Havana cigar, report busi-
ness on this brand showing splendid activity and reg-
istering a steady increase from month to month.

Henry Voice, of the Consolidated Lithographic
Company, was in town recently visiting the trade and
reported business with his firm going along at a fine
steady i)ace.

The New Day i)lan of servicing cigar stands in
selected locations throughout the city which was inaug-
urated by Yahn & McDonnell a few weeks ago is prov-
ing very popular with the trade and a number of
additional placements of this type of service have
been made.

John AVagner & Sons Monticello and Wagner
brands of smoking tobaccos are showing plenty of
activity during the fall months and registering sub-
stantial increases over the same period of last year,
with the Wagner and Monticello brands of cigars keep-

ing

pace.

The Royalist factory, Xortli Second Street, is
busy meeting the demand for their brand since the
introduction of the punctured head, which is now fea-
tured on all sizes of that brand, and also in meeting
the demand for their Amerada brand, retailing at five
cents. The Amerada brand has recentlv been intro-
duced to Philadeljihia consumers with good results,
after having been marketed in other areas for some
weeks.

The Tobacco World

WHEN DETAILS
ARE WEARING .

t

r^^AE^

^-<fi'

^^ ^^

\

^i

%

tt*-^ -

/•^.'

^^

% On this page are submitted the latest re-
ports received from Camel smokers. ..real ex-
periences of real people. Miss Eve Miller has
an exacting job as a New York department-
store executive. She appreciates the value oi
keeping her energy up to par. She says: "I
started to smoke Camels because I appreciate
mildness and delicacy of flavor. I found, too,
that Camels give me a 'lift' when my energy
is low — and Camels never upset my nerves."

♦*»»l

LEAF-TOBACCO
EXPERTS AGREE:

Camels are made from
finer. More Expensive
Tobaccos —Turkish and
Domestic — than any
other popular brand. "

r"^

PRE-MCMCJU. STU-
DENT. Charles Ste-
phens. Jr., says:
"When I am 'done
in,' a Camel erases
that tired feeling.
And Camels are a
milder cigarette!"

''^^

\'

You art invited to Tune In on the New

CAMEL CARAVAN

uitb

WALTER O'KEEFE • TED HLSING

ANNETTE HANSHAW

GLEN GRAY'S CASA LOMA ORCHESTRA

TUESDAY

10:00 P.M. E.S.I 8:00 P.M. M.S.T.

9:00 P.M. C.S.T. 7:00 P.M. P. S.T.

THURSDAY

9:00 P.M. E. S.T. 9:30 P.M. M.S.T.

8:00 P.M. C.S.T. 8:30 P.M. P. S.T.

OterCoa$Mo-Coast-VABC-ColumbiaSttuori

CHAMPtON GOLFER.
Miss Helen Hicks
says: "I can always
restore my energy
with a Camel. And
I can smoke Camels
constantly without
jangled nerves."

: ./

TRANSPORT PR.OT.

"When I notice
that 'all in' feeling
coming on, I light
up a Camel," re-
ports Maurice
Marrs. "And the
tiredness is quickly
relieved."

C«vyTlght, 1934,

E. J lUytnl.U Tubanoo

Cuiopanjr

CAMEL'S COSTLIER TOBACCOS

NEVER GET ON YOUR NERVES!

Novtmher is, 1934

A Dozen Cigar Code Questions

Code Authority Gives Answers to Dispel
Doubts of Manufacturers

SERIES of questions and answers pertaining
to the code for the cigar manufacturing indus-
try has been prepared by the national code au-
thority in order to clear up many points con-
cerning which many manufacturers appear to be in
doubt.

1. Question: Do all cigar manufacturers come un-
der the Code of Fair Competition for the Cigar Manu-
facturing Industry?

Answer: Yes. Everv cigar manufacturer from the
largest to the smallest is under the Code.

2. Question: Is a cigar manufacturer under the
Code even though he does not sign the (^ode!

Answer: Yes. Under the terms of the National In-
dustrial Recovery Act (a Federal law), everyone is re-
quired to abide by the provisions of the approved Code
for his industry. The Code for Cigar Manufacturers
was approved by the President on June 11), 19.S4.

3. Question: Are all of the provisions of the Code
now in eif ect f

Ansiver: Yes, including the Cigar Merchandising
Plan (Article VI of the Code) and the Amendment to
the Code (New Article XIII), requiring everyone to
place Code Authority stamps on the boxes or contain-
ers of the cigars he makes.

4. Question: Do the Labor Provisions of the Code
apply to a manufacturer who makes all of the cigars
himself and employs no workers?

Ansiver: If a manufacturer makes all of the cigars
himself and employs no workers, he is not required to
obey the Hour, Wage and General Labor Provisions of
the Code. If you are such a manufacturer, take a pen-
cil and cross out all of the words under Article III
(Hours provisions), Article IV (AVages provisions),
and Article V (General Labor provisions) of the Code,
as these provisions do not apply to your business.

5. Question: Must a manufacturer who employs
one or more workers obey the Hour, AVage and General
Labor Provisions of the Code?

Answer: Yes. If you employ any workers, read
the Hour, Wage and General Labor provisions of the
Code carefully, as the provisions apply to your busi-
ness. Also study the Hour and Wage Schedule dated
August 10, 1934, and read Letter No. 3, dated August
16, 1934.

Direct to Consumer

6. Question: What part of the Code applies to the
manufacturer who sells all of his cigars direct to the
consumer (smoker) f

Answer: If a manufacturer sells all of his cigars
direct to the consumer (smoker), he is not required to
obey that part of the Code known as the Cigar Mer-
chandising Plan (Article VI of the Code). However,
if you sell any of your cigars to retailers or jobbers, all
of your cigars are subject to the Merchandising Plan.
If you sell all of your cigars direct to the consumer,
take a pencil and cross out Article VI (The Cigar Mer-
chandising Plan) and Schedule I (also the Cigar Mer-
chandising Plan) of the Code, as the plan does not ap-
ply to your business. Bear in mind, however, that the

Cigar Merchandising Plan is only one part of the Code.

7. Question: What part of the Code applies to the
manufacturer who employs no workers and sells all of
his cigars direct to the consumer!

Answer: Cross out Articles III, IV, V and VI and
Schedule I. The rest of the Code applies to you, includ-
ing Neiv Article XIII which requires you to buy Code
Audiority Stamps.

Purchase of Stamps

8. Question: Is every cigar manufacturer required
to buy the stamps issued by the Code Authority!

Answer: Yes. Every manufacturer is required,
under the approved label amendment (New Article
XIII), to buy stamps and attach them to the boxes or
containers of the cigars which he sells. This part of
the Code applies to all cigar manufacturers, including
those who employ no workers and those who sell all of
their cigars to the consumer (smoker).

9. Question: After what date are manufacturers
required to place the Code Authority stamps on the
boxes or containers of the cigars they sell!

Answer: Every manufacturer is required to place
the Code Authority stamps on the boxes or containers
of cigars shipped from his factory on and after Octo-
ber 1, 1934.

10. Question: What does a manufacturer do to get
stamps !

Ansiver: He signs the Certificate of Compliance
and fills in and signs Form A, the back of which is just
like the order for Internal Revenue Stamps. Applica-
tions for stamps (Form A), unless sent in with a signed
Certificate of Compliance, and with cash, money order,
or certified check for the amount of the order, w^ll not
be filled. Unsigned applications for stamps will not be
filled.

11. Question: May a cigar manufacturer buy less
than a dollar's worth of stamps at one time!

Answer: No. Orders for less than one dollar will
not be filled. If a dollar's worth of stamps last more
than one month, a manufacturer mav continue to use
them as long as they last, and when they are gone he
may order more. However, so long as the total order
amounts to $1.00 or more, a manufacturer may buy less
than a dollar's worth of each denomination of stamps.
For example, he may buy 20 Class AA stamps for 50 's,
and 10 Class B stamps for 25 's, etc. — but his total order
must not be less than $1.00.

Information Report

12. Question: What does a manufacturer do with
the Cigar Manufacturers Information Report (pink
FormB)!

Answer: A manufacturer who needs more than
$6.00 worth of stamps a year, must fill in and file, every
month, this report, w hich show^s his production and use
of stamps during the month before. If a manufacturer
needs $6.00 worth of stamps of less a year, he must fill
in and file this report only once a year, the first time be-
tween July 1 and 10, 1935, to cover the period from
October 1, 1934, to June 30, 1935.

Tk€ Tobacco World

..it makes the
tobacco milder

Xn the manufaaure
of Granger Rough Cut Pipe
Tobacco the Wellman Process
is used.

The Wellman Process is dif-
ferent from any other process or
method and we believe it gives
more enjoyment to pipe smokers.

.../'/ gives the tobacco an ex-
tra flavor and aroma

,,,it makes the tobacco act
right in a pipe — bum
slower and smoke cooler

• . . it makes the tobacco milder

,,,it leaves a clean dry ash
^•^no soggy residue or heel
in the pipe bowl
Dggett & Myers Tobacco Co.

• . • in a
common - sense
package — 10c

We wish in some way we could get

every man who smokes a pipe

to just try Granger

■^t»

d 19M> Ltecvrr A MyxmTomcgo G»«„

NovembiT 1$, 1934

Urge Reduction of Processing Taxes

Industry Leaders Argue in Favor of Government's

Holding Tax Down

ESTHIOXY in favor of a roduetion in the proc-
ossinu- laxos on Burk'v, fhio cured, lire cured
and dark air cured tobacco used in the numu-
facture of phiu' clicwinii-, twist chewinu:, and
other clie\vini»- tobacco was presented Xovend)er 9, at a
public hearing- i)resided over 1)y J. L. Peirce and Robert
B. Tyler, of the A<»ricultural Adjustment Administra-
tion. The hearing: was called by Secretary of A,<2:ricul-
ture, Henry A. Wallace, who said in the final hearinjr
notice that he had "reasons to l)elieve" that the rate of
processing: taxes on the several types of tobacco used
for the purposes mentioned *'will cause such reduc-
tions" in domestic consum])tion of the tol)acco types or
their products "as to result in an accunuilation of sur-
plus stocks" or in "the depression of farm price"
thereof.

The notice further set forth that if the Secretary
finds that such results will occur, then the rate of the
processins: tax on the several types of tobacco used in
the manufacture of ])luu' chewinu', twist chewin<>:, and
other chewinjr tobacco "will be such as will ])revent
such accunuilation of surplus and depression of the
farm price thereof."

At the beirinnin^r of the hearinir, i)residin.u: officer
Peirce gave notice that hearinirs held on December 29,
1933, and May 24, 1934, on the processing: taxes levied
on tobacco used in the numufacture of ])lu,i!: chewing
and twist chewing tobacco would be inc(»r])orated into
and made a part of today's hearing.

J. E. Howard, of the Si)arrow and (Jravely To-
bacco Company, Martinsville, Va., said his company
had presented facts and ligures at the previous hear-
ing.

He also stated that unless the jirocessmg taxes are
reduced the demand for his company's ])roducts will be
lessened, as the firm will be forced to reduce the size of
the product and ])ossi])ly to increase its i)rice. He sug-
gested a processing tax of 1.') cents a jmund farm sales
weight, on all types of tobacco used in the manufacture
of plug and twist. He stated his business is comj)osed
of 9U per cent, plug and 10 \ivv cent, twist, and that in
his plug tobacco he uses oidy ilue cured type.

H. B. Taylor, of Taylor Brothers, Winston-Salem,
X. C, also asked that a uniform ])rocessing tax be lev-
ied on all grades used in the manufacture of chewing
tobacco, "so the processing tax will not act as a tax dif-
ferential subsidy for some manufacturers."

Taylor said if the tax reduction is granted, he
hoped there would be no increase in i)ri('c, but that if
any increase is made necessary by liigher operating
costs and increased price for leaf tobacco it would be
smaller with a tax reduction.

R. i\ Owen, Jr., (Jallatin, Tenn., twist manufac-
turer, said that his company would not be able to in-
crease prices to farmers for leaf tobacco this season
because the margin of j)rofits is too small. If forced to
pay higher leaf ])ri(('<, Owen said, his firm wouhl have
to "buy less tobacco and increase retail inices. He also
favored a fiat processing tax rate on all types used in
the manufacture of chewing tobacco.

10

G. A. Puryear, of the Cumberland Tobacco Works,
Nashville, Tenn, said his comi)any had been able to as-
sume the processing tax and increase their own costs
w^ithout reducing the size of its ])r()ducts nor increasing
prices. This was made jiossible, he said, because his
company had on hand a large stock of 1931 tobacco
which it luul purchased at very low prices. Now, how-
ever, he said, his company will be forced to advance the
price and possibly lower the size of its lu'oducts unless
the processing tax is reduced as the cheap tobacco has
))een sold. He suggested a tax of 1..") cents a jmund on
the finished product.

J. B. O'Brien, of the Ryan-Hami)ton Tobacco Com-
pany, Louisville, Ky., testified he is expecting higher
leaf prices this season and unless the ])rocessing tax is
reduced he said his company will not be able to buy
nuicli leaf tobacco. He also favored the levvin<>: of the
processing tax on the finished i)roduct, but recom-
mended that it be at the rate of 1 cent a jmund.

Walter Scotten, of the Scotten-Dillion Company,
Detroit, Mich., testified in favor of a uniform i)rocess-
ing tax on all tobacco used in the manufacture of chew-
ing and twist tobacco.

Mr. Taylor, who previously had suggested a uni-
form rate of 1.5 cents a ])ound on leaf tobacco an-
nounced that he favored either tiiis rate or a rate of 1
cent a pound on the finished product. Mr. Scotten tes-
tified that his conii)any had used Hue cured tobacco in
the manufacture of granulated or "roll your own" to-
bacco, but said that the i)rice of flue cured has gone up
so high his firm decided to abandon manufacture of
this i)roduct when processing of the flue cured stock
now on hand has been completed. He said this action
would be taken regardless of wlietlier the processing
tax is reduced.

When all testimony had been received, presiding
officer Peirce announced that all interested j)ersons
would have five days in which to file briefs with the
Chief Hearing Clerk of the Agricultural Adjustment
Administration relating to the hearing.

The first (piestion considered at the afternoon
hearing was whether a processing tax imposed uj)on
the j)rocessing of cigar leaf tobacco at the full statutory
rate, which ecpuds tiie present difTerence between the
current average farm price for cigar leaf tobacco and
the fair exchange value thereof, will cause such reduc-
tion in the <piantity of cigar leaf tobacco, domestically
consumed, as to result in the accumulation of surplus
stocks of cigar leaf tobacco, or in the depression of the
farm price of cigar leaf tol)acco. The ]>resent difTer-
ence between the current average farm price for cigar
leaf tobacco and the fair exchange value is 4.7 cents a
pound. The present i)rocessing tax is 3 cents a pound,
unsweated farm sales weight.

Harvey L. Hirst, of Bayuk Cigars, Philadelphia,
the Chairman of the Cigar Code Autiiority, was the af-
ternoon's first witness. Mr. Hirst said that there "was
an excess of low grade cigar tobacco, but that many
manufacturers of two for five-cent cigars were ad-
versely affected by the processing tax.

Th4 Tobacco World

(.igars are the
most pleasurable
and economical
form of smoking.

BAYUK BULLETIN

wiooouRnunr

VOLUME II.

NOVEMBER 15, 1934

NUMBER 21

PHULOFAX

(The Retailer^s Friend)

SAYS

"Are salesmen in-
terested or influenced
by practical promo-
tional suggestions
written them by the
home office?"

SALESMEN are
but order takers are
not.

The greatest asset a salesman has
is the good-will of his customers and
he builds good-will by following
through with the precepts of the
Golden Rule.

If there's any one thing that gets
the nanny of a customer it is to spell
his name wrong or to give him the
wrong initials of his name. If we
don't know the right initials or the
correct spelling of a customer's name,
it is not difficult to find out!

There's many an order comes thru
the receiver of a telephone if the voice
in the transmitter is properly on the
job. ^-o—

Sometimes a salesman is balled out
by the Boss when the Boss might have
done under similar circumstances just
what the salesman did. (We salesmen
gotta stick together I)

Be careful now, you jobbers — don't
get your Christmas wrapped cigars
mixed up with regular packings AND
don't wait imtil the last moment to
tip off your manufacturer that you
nred more Christmas wrapt cigars
BECAUSE this is going to be a BIG
CIGAR CHRISTMAS and don't for-
get either that Cigars are the most
Pleasurable and Economical Form of
Smoking. Here, have a fresh cigar I

"It's a smart man who knows how
dumb he is and in his dumbness
strives to be smarter" so writes in

E. C. Mac from Newark, N. J.,

which proves he is already smarter
than he is dumber.

Mr. A. R. wants to know if he did
right in this instance: "I have a
dealer who won't buy anything that
does not personally please his taste.
1 asked him what he'd do if he had
a demand from his customers for
laudanum. He got sore — wasn't I
right"?

You're never right when you get
YOUR CUSTOMER sore . . . What
£ay you readers?

On the level now, when we say we
can't FIND time to do this or to do
that, don't we really mean we don't
TAKE time to do this or that?

THIS SIMPLE PLAN
TRIPLED DEALER'S SALES

Fred E. Brown, New York, submits
the following story which many a
salesman can apply with advantage.

Did you ever go into a drug store
to buy a cigar (asks Mr. Brown),
hammer your coin on the case, wait
a while for the clerk to show up —
and finally walk out without the
cigar? Lots of men have.

Not long ago I persuaded one of
my drug store customers to place a
few boxes of cigars on his soda foun-
tain-lunch counter, where the soda dis-
penser could give immediate service.
This customer tells me that his sales
of the brand thus displayed twice in
the store have tripled.

WHEN'TVO''MEANS'TES'

Miss R, M, Sellers — Cigar Merchant

CIGAR MERCHANTS
ARE MADE-NOT BORN

The Story of a Self -Made Merchandiser

(7ic:i^

D.B.L

wUk B4YUK C1C4RS INC., PAUo.
— MalMrfl •/ >!«• c<fw« wkmm 1997

It is said that one of the
greatest swimming coaches in
America has never swum a
stroke in his life. He can't swim.
We won't swear to that story —
we've only heard tell. But we
can vouch for a fact almost as
unbelievable.

One of the most progressive
and successful retailers of cigars
in Philadelphia has never tasted
cigar smoke, yet daily advises
veteran smokers on their choice
of cigars. Three years ago, this
dealer didn't know the difference
between a panatella and a per-
fecto, yet today can discourse
learnedly on shapes, shades and
sizes and like matters dear to
the true cigar lover.

Well, we might as well let the
cat out of the bag. This unusual
cigar merchant is a woman. Miss
R. M. Sellers, manager of one of
the stores of the Nevin Drug
Co.

Miss Sellers began her career
at 15 when she got her first job
in a drug store and has been in
the drug business ever since.
"When I came to manage this
store," she said, "our cigar busi-
ness was next to nothing. We
carried a few brands, but made
no attempt to push them. I knew
very little about cigars, and
cared less. But I found myself.

day after day, turning away
customers who asked for brands
I had never even heard of. That
set me thinking. I figured we
made about five cents on a tube
of shaving cream that would last
a customer four weeks. If we
could get his cigar business we'd
make as much or more every
day.

"I determined this was going
to be one drug store where the
cigar counter was not a side
issue. And knowing nothing
about cigars I figured it was up
to me to learn. I went to a cigar
factory and asked them to let
me see how cigars are made. I
asked all sorts of questions of
every cigar salesman who came
in the place. In my lunch hour
and evenings, I visited cigar
stores and studied their stock,
their displays and the sales
methods the clerks used. I ques-
tioned them, too. I guess I made
a general nuisance of myself,
but I was beginning to know
something about cigars.

'Well, rm still learning. I still
go around looking and asking
questions. And I study my cus-
tomers, too. I know not only
their names and their favorite
cigars, but little personal things,
such as whether they like to be

(Contintied in next column)

They say a woman's "no" means
"perhaps." If you work it right, the
cigar dealer's "no" often means "yes"
— according to Arthur Pines, Chicago
salesman. Says Mr. Pines:

A dealer is called on by so many
salesmen in the course of a year that
sales resistance becomes second nature
with him — and the word no is always
on the tip of his tongue.

When I wanted to put a poster on
a dealer's window I used to say: "May
I put up this poster?" And too many
times the answer was no. These days
I say: "You don't mind if I put up
this poster, do you?" I still get a lot
of no's, but in this case it means "go
ahead." Of course, it doesn't work
every time, but most times it does.

kidded a bit or are the 'strictly
business' type. Knowing your
customers is as important as
knowing your goods, maybe
more so.

"Yes," she replied to a ques-
tion by the interviewer. "I like
the cigar business. I get a lot of
fun out of it."

An interesting side-light is
thrown on Miss Sellers's ability
as a merchant by something that
happened not long ago. A manu-
facturer, putting a new brand
on the market, offered a prize
to the Philadelphia dealer who
would sell the most of his brand

within a certain time. By some
oversight Miss Sellers was not
informed of the contest. Much
to her surprise she was awarded
the prize for high score. She
had pushed the cigar, merely be-
cause she believed in its quality,
and without knowing she was
competing in a race.

BAYUK BRANDS BUILD BUSINESS

Bayuk 'Phillies'

(BAYUK PHILADELPHIA PERFECTO)

Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

To aid these manufacturers he urged removal of
the processing tax, stating tliat it is essential that low-
priced cigars, especially the five-cent cigar, be main-
tained. He said that cigar sale volume would be
sharply decreased if the industry was forced to aban-
don the five-cent cigar and sell the present five-cent
quality cigar at an odd-cent price, such as six or seven
cents. He cited a previous loss in volume when operat-
ing costs forced the industry into odd-cent figures in
1916. "^

Fred J. Davis, of Schwab-Davis & Companv, New
York, brought out that the manufacturers' list price
had not been increased by the elimination of cut-priced
cigars in retail outlets.

Harley W. JeiTerson, of the American Tobacco
Company, who was introduced as an expert on Wiscon-

sin cigar leaf tobacco, testified that there is a very large
supply of low grade Wisconsin leaf on hand and a small
supply of the better grades. He said that 80 per cent, of
this year's cigar leaf crop in Wisconsin had been dam-
aged by frost and is suitable mainly for use in two for
five-cent cigars and in scrap chewing tobacco. A num-
ber of manufacturers, of low-priced cigars, have been
forced to close their plants because of the processing
tax and increased costs, he stated. If the processing
tax were eliminated, he contended, it would allow a
margin of profit sufficient to permit the low-price man-
ufacturers to reopen their plants, and with the tax elim-
inated these manufacturers could afford to push their
sales, particularly through advertising and eventually
could consume the large quantity of low grade tobacco
now held in Wisconsin.

Ruling on Combination Sales

HE RESOLUTION of the National Code Au-
thority for the Retail Tobacco Trade prohibit-
ing combination sales with cigarettes was set
aside by NRA as being an unwarranted re-
striction on retail selling. The resolution in question
was as follows: *' Resolved, that where a minimum
price on any tobacco product has been established un-
der the Retail Tobacco Code, it shall be a violation of
Article VI, Section 4, of said Code for this product to
be offered or sold in combination with any other article
or commodity. No device or subterfuge may be em-
ployed to evade this prohibition of combination sales."
Upon an application by Frank H. Waggoner, Edi-
tor of Premium Practice, 420 Lexington Avenue, New
York, N. Y., for an interpretation and revision of the
above resolution, acting on behalf of members of the
tobacco industry, NRA, under date of October 26, 1934,
issued the following interpretation:

"It is held that such combination sales are not in
violation of said Section 4, Part II, Article VI, unless
such fixed minimum price is thereby reduced by charg-
ing a price for the combination, which is less than the
fixed minimum price of the tobacco product plus the
reasonable value of the other merchandise. Such rea-
sonable value shall be deemed to be the minimum price
at which such merchandise may be sold pursuant to any
Code of Fair Competition governing the normal sale

thereof, but shall in no event be less than the cost of
such merchandise to the tobacco retailer.

*at is further held that Section 9 of Article VII
will not be violated if the tobacco retailer does not make
the purchase of such other merchandise a condition to
the purchase of the tobacco product."

This ruling of NRA means that combination sales
are permissible by retail tobacco dealers provided in
the combination price there is the full code price of the
cigarettes plus a sum to cover the cost to the retailer
of the combination article. Thus if a cigarette lighter
IS offered with a pack of cigarettes and the combination
sale price is large enough to cover the full code price
oi the cigarettes and also the cost or more than the cost
of the other article to the dealer, that such combination
sale is permissible under the Code.

The second paragraph of the NRA ruling simply
states that customers must be permitted to purchase
the cigarettes alone and not in the combination if they
so desire. That situation would prevail in every store
and therefore does not change the situation. '

This ruling had the endorsement and approval of
McKenzie Shannon, Esq., Assistant Counsel; Irwin S.
Moise, Deputy Administrator; E. M. Jeffrey, Chief
Review Division, and Arniin W. Riley, Division Admin-
istrator.

Exemption for Slow Workers

IVISION ADMINISTRATOR Armin W. Riley
today approved an order granting an exemp-
|j tion from Article IV, Section 9, of the code for
the cigar manufacturing industry to the Val
Roma Cigar Co., of Evansville, Ind. The section per-
mits members of the industry to employ a certain num-
ber of slow workers at less than the minimum hourly
rate, provided they receive the same piece rate as the
fast workers. Under the Code, these slow workers are
limited to 25 per cent, of the total number of hand
workers employed or 10 per cent, of the machine work-
ers.

The order approved by the Division Administrator
permits the Val Roma Company to classify 50 per cent,
of the rollers engaged in the manufacture of five-cent
cigars as slow workers until Januarv 1, 1935, provided
that such workers shall be paid $5.00 per thousand for
rollers, $2.50 for hand bunchers and 90 cents for ma-
chine bunchers. The company is also required to fur-
nish the Code Authority a statement, evidencing com-
pliance with the Code and with the terms of the excep-
tion granted.

The exemption was granted on the showing by the
company that there was not an adequate supply of fast
workers available.

Th4 Tobacco World

The experienced dealer
says : "I have found that
when you tie up with
El Producto you can't
help but make a go of
quality business*''

H

I. r. ciCAmco.,iNc.,rHiLA.,rA.

EL PRODUaO

for real enjoument 1 r\ cents

Mechanization Dispute in Netherlands

By DON C. BLISS, Acting Commercial Attache, The Hague

made at such a low sales price that the regular trades
cannot compete. The only way to make competition pos-
sible then is to buy more machinery, which again results
in greater unemployment and extension of the marginal
industries. If no measures are taken against machine
labor, the cigar industry will be largely mechanized in
a short time. Also the present marginal industries will
then not be able, even at the very low wages which are
being paid there, to provide work for the large numbers
of unemployed who will then be dismissed on account
of the mechanization, and the country will have another
group of thousands of permanently unemployed la-
borers.

Another result of the mechanization will be, it is
asserted, that the selling prices which now already have
declined very much, will decrease still more, because
the unemployed laborers will accept work in the mar-
ginal industries at any wages, and the machine prod-
ucts will have to be sold at cheaper prices. As a result
the tobacco excise will bring in a much smaller total
amount.

The manufacturers are ready to cooperate w^ith the
government in the interest of emplojTiient conditions,
but urge that quick action should be taken, because they
do not feel justified in waiting much longer wnth the
mechanization or further mechanization of their plants
if it is not certain that measures may be expected from
the government in a short time.

EVENTY-SIX cigar manufacturers in the
Netherlands have requested the government to
prohibit, as a crisis measure, the use of the so-
called rolling machines, namely, those ma-
chines which roll the outside leaves around cigars or
cigarillos, but not the filler (inside-material) machines,
which have been introduced into the trade to such an
extent that they could not be done away with any more.
Consequently they are asking for a prohibition of only
the finishing operation by machine labor.

By virtue of a written authorization of seventy-six
manufacturers who employ more than 10,0()0 laborers
in their factories, the N. V. Karel I Cigar Factories at
Eindhoven have sent an extensive address to the Chair-
man of the Ministerial Council and the Ministers of
Social Affairs, Economic Affairs and Finance. In that
address it is pointed out that the newest types of com-
plete cigar machines, which may be handled by three
young laborers, wrap 30,(XX) cigars per week. A fully
skilled cigarmaker finishes about 3,000 cigars per week.
Therefore, the introduction of such machinery greatly
restricts labor possibilities.

Many laborers who have been thrown out of work
already, and cannot find work in the regular industries,
try to get a place in the so-called marginal industries,
where labor is done on any wages. The result is, it is
stated, that in these marginal industries cigars are

November 15, 1934

v_y

News From Congress

Ft D E R A L

Departments

IRM ])eliot' that the depression will be a tliinir
ot the past by next summer is held by Admin-
istration officials as a result of recent develop-
ments in bankins: and industry. Announce-
ment by the Ford Motor (\unpany 'that its 1985
production would be 1,(H)(),()(M) cars, for the first time
since 1930, brou.i^ht to Washinuton a conviction that
other producing- interests would follow suit in exi)and-
ing their output. Holding consistently to the opinion
that real recovery could be started by (»ne ])rominent
manufacturer setting the ball rollingi Administration
leaders expect a general advance in industrial produc-
tion all along the line in the near future.

Coincident with the Ford announcement, Leo T.
Crowley, chairnum of the Federal I)ei)osit Insurance
Corporation, re]»orted a sharp increase in bank depos-
its, which he held to be a forerunner of busiuess re-
covery.

** History shows that money never remains idle in-
definitely," Crowley pointed out. "In fact, there is no
historical i)recedent for money remaining idle as long
as it alreadv has."

As its own contribution toward overcoming the in-
ertia of industry, the National i\*ecovery Administra-
tion called in representatives of 23 durable goods
lines for the i)uri)ose of correlating their codes to over-
come difficulties of operation which have been encoun-
tered, and took (juick steps to mediate the controver-
sies between chain store oi)cratr)rs and their labor.

With increased i)roduction, money ready to go to
work, the durable g:oods industiies restarted and labor
troubles eliminated, the Administration believes real
recoverv would come (luicklv.

C?3 C?3 Ct3

FFICIALS of the National Recovery Adminis-
tration are studying the comijlaint of the cigar
industry against imjmrts of low-priced ci^rars
from the Philippine Islands, filed recent Iv un-
der Section 3(e) of the Industrial Recovery * Act,
together with other complaints from domestic ])ro-
ducers of other products which have Im'cu jjcnding for
some time. It is expected that in tiie near future the
Administration will ask the Tarifl* Commission to con-
duct investigations of these cases and reconunend
action by the President, if found advisable.

Under the provisions of ihc act, where imjjorts
are found to imperil industries operating under recov-
ery codes, quotas oi- import fees, or both, may be im-
posed.

t4

FffOM OUR Washington Bureau 623Alb£e Building

XATIOX-WIDF investigation of local code ad-
ministration i)roblems directed chief! v at en-
lorcement and assessments under the retail
codes, has been undertaken by the National In-
dustrial Recovery Board. A committee consisting of
Deputy Administrators Irwin S. Moise, Robert K.
Straus and (r. de Freest Larner, has been a])pointed by
the Board to visit a number of leading trade centers to
discuss conditions with business men and code author-
ity secretaries.

The i)urpose of the study, it was explained, is to
coordinate and etTect economies in the local adminis-
tration of codes and to eliminate the multijile assess-
inents, of which there has been much comi)laint, includ-
ing that from grocers handling cigarettes and cigars,
from whom the Tobacco (ode Authority wouhl exact
contributions.

The XRA g:roup will visit some fifteen cities in
various sections of the country for the ])urpose of gath-
ering: first-hand information on the subject of code ad-
ministration and assessments. Among the cities al-
ready selected for the investigation are Dallas, Bir-
mingham, Atlanta, Nashville, New Orleans, Milwaukee,
Des Moines, Onudui, Chicago, Cleveland, Baltimore,
Providence, Concord, N. IL, BuHalo and Pittsburgh.

Ct3 Ct3 (t3

UMHROUS changres among: those who have
been acting as advisers to the President and
his recovery program are exi)ected to })e nuide
in the near future, now that this can be done
without .setting up any political disturbances which
might have infiuenced the elections. Men whose i)er-
.sonalities or views have been considered inimical by
business interests will be gradually replaced by others
who will have the endorsement of nationally known
business leaders.

For some time, it has been learned, Administration
officials have been conferring (piietly with leading in-
dustrialists in the compilation of a list of advisers
whose activities are felt to be causing business to lose
confidence. These men will gradually })e ''recalled"
to their former pursuits and succeeded by economists
and business men of recognized standing.

With something over a year of comjtaiative politi-
cal .serenity before him, the President is expected to
modify the ultra-radical attitude which some of his sub-
ordinates have displayed into a policy of encouraging
business, banking and industry to come out of the
* * storm cellar * ^ of depression.

Tkt Tobacco World

APPLY FOR CODE INSIGNIA

HE N. R. A. has determined that Code Insignia
for the Retail Tobacco Trade should be dis-
tributed to all members of the trade, which
means any person engaged wholly or partially
m the selling of tobacco products, reports a release
from the National Code Authority for the Retail To-
bacco Trade, signed by William A. Hollingsworth,
chairman. From this it will be seen that any person
selling tobacco products along with other lines of mer-
chandise, is entitled to the Code Eagle for the Retail
Tobacco Trade, even though the volume of tobacco
business is less than that of his remaining business.

All insignia will be marked with serial numbers
and each retail tobacco establishment will be regis-
tered under a different number. Those who receive
copies of the Code Eagle in response to their appli-
cation for same are requested to fill out the self-
addressed card attached to each emblem and to return
it directly to our office.

We are requesting that state and local chairmen
publicize this notice throughout their territories. We
are anxious to effect distribution of the Code Insignia
as soon as possible to all dealers entitled to its use.
Co-operation of all Code Authorities and local asso-
ciations in bringing about prompt distribution will be
appreciated.

All applications should be sent to the National
Code Authority for the Retail Tobacco Trade, Room
1148, Woolworth Building, New York City.

ARMISTICE DAY RECOGNIZED

The National Industrial Recovery Board, on rec-
ommendation of Division Administrator Armin W.
Kiley, approved an order staying the provisions of
Article III, Section 4, of the cigar manufacturing code,
which requires that all time work on legal holidays by
employees of the industry, must be paid for at the rate
of time and one-third. The stay as granted affected
only Monday, November 12, 1934, Armistice Day this
year coming on Sunday.

The wide variance in different states in the ob-
servance of Armistice Day made this stay necessary,
especially as this is the industry's peak season. In
states where the day is not observed as a legal holiday,
manufacturers would be able to operate as usual, while
in other states where it is a legal holiday, manufactur-
ers would be faced with the alternative of closing down
at the height of their season or else paying overtime.

MANILA SHIPMENTS DECLINE

MARKED decline in shipments of cigars from
the Philippines to the American market in Sep-
tember has been reported to the Department
of Commerce by Trade Commissioner C. Grant
Isaacs at Manila. Total shipments during the month
were but 5,324,874 units compared with 24,065,270 in
the same month last year, a decrease of 18,740,396 units
or nearly 80 per cent. The reduction, it was stated, was
due to a decline in the shipment of Class A cigars,
which are the type retailed in this country for not more
than five cents each.

November JS, 1934

CIGAR PRICE CHANGES

HE National Code Authority for the Retail To-
bacco Trade announced the following prices to
be effective under the Cigar Merchandising
Plan. Note carefully that all prices quoted in
this Bulletin are final. If they are inconsistent with
any provisions of the printed notice, entitled ''Extracts
from the Cigar Merchandising Plan'', circulated by the
National Code Authority some time ago, then the prices
and discounts in this Bulletin are the ones that should
be observed. Also, all new prices and discounts cov-
ered by this Bulletin are to be added to and to be con-
sidered part of the notice originally received by you:

1. In the case of multiple sales of cigars listed at
less than five cents a unit (two for five cents; three for
ten cents) with the Council, a discount of 8 per cent,
may be deducted in case of box sales of twenty-five or
more such cigars.

Price Changes: 3/50 cigars, for 6/95; 15^ cigars,
for 7/$1.00; 2/25 cigars, for 5/60; 3/35 cigars, for
5/57; 14^ cigars, for 5/67; 2/5 cigars, for $1.15, box of
50; 10^ cigars, for 5/48; 20^ cigars, for 5/95; 3/10 ci-
gars, for 50/$1.54; 100/$3.08.

Any manufacturer may disallow these multiple
sale discounts on less than ten (10) cigars, by notifying
his trade accordingly.

STAY OF WAREHOUSE HOURS

HE National Industrial Recovery Board on No-
November 6th approved an order carrying a
limited stay of the maximum hours' provisions
of the approved code for the auction and loose
leaf tobacco warehouse industry. The stay became ef-
fective immediately. It will remain in effect not longer
than February 1, 1935, or until a permanent solution of
the peak period situation in the industry is arrived at.
According to the order, members of the industry who
are going to take advantage of it must file notice of
their intention with the Code Authority.

Under the stay, unskilled employees may work ten
extra hours per week, and up to twelve hours per day,
provided that overtime pay at the rate of time and one-
half be paid for all time worked in excess of eight hours
per day or forty hours per week.

The Board was informed that it is imperative that
unskilled labor of warehouse operators be enabled to
work overtime during the peak season just beginning,
since it is impossible to recruit adequate extra staffs
for limited overtime.

ADOPTS INSURANCE PROGRAM

HE Preferred Havana Tobacco Co., Inc., has
announced the adoption of an employees'
group life insurance program which covers
eligible workers in the company's branch office
in Tampa, Fla., and those in the main office in New
York City. The plan is being underwritten by the
Metropolitan Life Insurance Company on a coopera-
tive basis, whereby the employer and employees share
the cost.

Individual life insurance benefits range from $500
to $1,500, according to the employee's occupational
rating. Participation entitles the insured worker to
the services of a visiting nurse, during sickness or in-
jury. This service is supplemented by the periodical
distribution of health pamphlets.

Tobacco Outlook for 1935

{Continued from Page 5)

factured tobacco products is not likely to show much
change, leaving the net increase for flue-cured products
in the United States about the same as that which oc-
curred last year.

Exports during 1933-1934 totaled 380,000,000
pounds (farm sales weight), which represents an in-
crease of 22 per cent, over the exports a year earlier
and 14 per cent, over two years earlier. This is about
10 per cent, below the iive-year average. The quantity
exported last year exceeded foreign consumption for
the first time since 1930-1931. It is probable that in
view of the reduced production in 1934, exports during
1934-1935 will be below foreign consumption. Foreign
consumption showed a small reduction last year, and
it appears probable that some further decline nuiv take
place during 1934-1935. Although the consumj^tion of
United States flue-cured tobacco in the United King-
dom appears to liave shown some increase during the
last fe\y months, this gain has been more than offset
by declines in other important countries, particularly
in China. The production of flue-cured tobacco in for-
eign countries in 1934 apjiears to have been larger than
in 1933, notwithstanding: the smaller crop in Canada,
and it is expected that further increases may take place
in 1935, bringing the total foreign production for re-
porting countries (China, Japan, South Africa, Can-
ada, and Australia) above 200,000,000 ])ounds.

It is estimated that the total world consumption of
flne-cured tobacco during 1934-1935 will l)e around
630,000,000 pounds. This suggests that world stocks on
July 1, 1935, will be a])out 1,265,000,()0() i)ounds or 6.4
per cent, below those of July 1. 1934. Therefore a crop
of flue-cured tobacco in 1935 equal to that of 1934 would
make a total world's supply for tlie succeeding year of
about 1,800,000,000 pounds or about 5 per cent*, below
that of July 1, 1934. On the other band, a 1935 crop as
large as that of 1933 would give a world's supjilv ap-
proximately 105,000,000 pounds larger than that of
1934-1935.

Sales to October 1st from tlie 1934 crop of flue-
cured tobacco were at the most favorable ]irices in more
than a decade. Judging from the effects of higli prices
in previous years, it appears that if no control meas-
ures were to be applied in 1935 the acreage planted to
flue-cured tobacco would be so increased as to result in
a crop far in excess of world consumption. The present
economic situation in the flue-cured tobacco industry
indicates that the total supply for the 1935-1936 season
should not greatly exceed tliat available for the present
season.

FIRE-CURED TOBACCO— TYPES 21, 22, 23 AND 24

The outlook for fire-cured tobacco shows only mod
©rate improvement. World supi)lies though nuiterially
reduced are still large, and the exj)ort situation shows
no material improvement. Foreign consumption of
these types, which has been on a downward trend for
the last decade or more, decreased further during the
last year, but a moderate increase is shown in domestic
consumption.

Production of fire-cured tobacco in the United
States in 1934 is currently estimated at 121,628,000
pounds. This is the smallest crop on record and is
materially less than world consumption for the 1933-
1934 season. As this crop is below world consumption,

i6

stocks of these types a year hence will show a sizeable
reduction from present levels.

Domestic stocks of fire-cured tobacco on October
1st are estinuited at about 215,000,000 pounds (farm
sales weight). Foreign stocks of United States fire-
cured types have been estimated at 133,000,000 pounds.
World stocks, together with the estinuited domestic pro-
duction of nearly 122,000,000 i)ounds, make a total
world supply of 470,000,000 pounds for the 1934-1935
season. This is about 2 per cent, less than the world
supply the previous year and around 35 ])er cent, below
the level of world sup])lies ten years earlier. However,
present supplies are large in view of the reduced rate
of consumption.

World consumption of United States fire-cured to-
bacco, for tlie twelve months ended September 30, 1934,
is estinuited at 134,000,000 pounds. This is about 2 per
cent, below world consumption for the preceding
twelve-month period and about 35 per cent, smaller
than world consum])tion in 1925. Foreign consumption
decreased during the last season, but was offset to some
extent by increases in domestic use. About 70 per cent,
of the fire-cured tobacco produced in the United States
is exported and about 30 per cent, of it is used in do-
mestic products, principally snuff. Tax-])aid with-
drawals of snufY for the twelve months ending with
September, 1934, were approximately 5 per cent, larger
for the previous twelve months.

The foreign trade in United States fire-cured to-
bacco has declined rajudly since 1923, owing to the
increasing competition of foreign tobacco and to
changes in consumer preferences. Exports for all fire-
cured types for the twelve months to September 30,
1934, totaled only 83,000,000 pounds (farm sales
weight). This is 9 per cent, below exports for the pre-
vious year and more than 50 per cent, below the exports
of ten years ago.

The outlook for fire-cured tobacco in 1935 depends
to some extent on the disposition made of the excess
production of some ])roducers of the quantity allotted
under contract. If this excess is destroyed, the supply
situation will have been so improved by 1935 that a re-
duction in the crop somewhat less than that of 19.34 will
restore supplies to their normal relationship with con-
sumption.

BURLEY TOBACCO— TYPE 31

The dominating factor in the hurley situation is
the huge carry-over from the 1933 and previous crops.
In 1933 the October carry-over was about 736,000,000
pounds, farm weight. Added to the 1933 production
of 382,000,000 pounds, this made a total supplv of
1,118,000,000 pounds, the equivalent of about four
years* consumption requirements compared with an
average of 2.8 vears' supjilv durinir the ten-vear period
1920-1929. This year it is believed that October stocks
(not yet tabulated) will amount to about 837,000,000
pounds farm weight. This, added to the estimated 1934
production of 298,000,000 ])ounds, makes a total sup])ly
of 1,135,000,000 pounds, or again, about four years' con-
sumption re(iuirements. Sliould the full <piantity Ik*
sold or held available for sale, the total supply for the
ensuing year would be 1,135,000,000 pounds, or about
IV2 P<?i' cent, greater than that of a year ago. This
suggests that the planting of an acreage next year
equal to that of 1934 would be unwise. Owing to favor-
able yields, it has been reported that a large percentage
of the hurley growers who signed contracts with the

Tht Tobacco World

Agricultural Adjustment Administration this year
have j)roduced in excess of their quota. The method
of disposing of this excess tobacco will have an impor-
tant bearing on the present and future outlook. If as
has been estimated the excess production by signers
amounts to 25,0()0,()00 pounds and this quantity is de-
stroyed or rendered unfit for the ordinary uses, the
present potential supply and next October's carry-over
will be diminished accordinj»lv.

The demand situation in Hurley has imi)roved
somewhat. Cigarette consum])tion has shown an up-
ward trend since A])ril, 1932. Withdrawals during
the twelve months ending September 1 were about 9
per cent, higher this year than last. Consumption of
other products for which Burley is used has shown
but little change, however, and the total disappearance
of Burley in the 1933-34 season will probably be about
6 per cent, over that of the previous season.

MARYLAND TOBACCO— TYPE 32

The outlook for good Maryland tobacco appears
to be favorable. Hut it is to be noted that the total
suiiply as of October 1 is the highest on record, largely
because of the accumulation of low-grade tobacco. Pro-
duction in 1934 is estimated at 24,4S0,000 pounds,
compared with 20,400,000 pounds in 1933; whereas it
is estimated that stocks on October 1 were 38,000,000
])ounds, compared with 40,488,000 pounds a year ago.
The net elTect of these changes in production and
stocks is to increase the total sui)i)ly from 60,888,000
pounds on October 1, 1933 to about 62,500,000 pounds
.on the same date in 1934. A considerable portion of
the existing stocks and total supply represents an
accumulation of low-grade tobacco. Offsetting this
increase in total supply is the fact that exports have
improved somewhat during the last nine months and
there are indications that domestic consumption also
is increasing. Total disappearance is estimated at
23,000,000 i)ounds during the last twelve months, which
is substantially larger than disappearance during any
of the preceding three years. Prices paid on the Bal-
timore maiket for the 1933 cro]) averaged slightly
higher than those paid for the 1932 crop, notwithstand-
ing the fact that the only sales of low-grade tobacco
have been at extremely low prices.

DARK AIR-CURED TOBACCO— TYPES 35, 36

AND 37

The supply situation of the dark air-cured class
of tobacco has* improved during the past year. Pro-
duction during the last two years has been on a lower
scale than in previous years, and ihere has also been
a reduction in stocks. 'The October forecast of pro-
duction of dark air-cured tyi)es is about 10,000,000
pounds less than the total disappearance during the
year ended October 1, so that it is probable stocks will
be further reduced by October 1, 1935.

Disapi>earance of dark air-cured tobacco declmed
more than 50 per cent, during the last decade but has
remained at about the same level during the last two
years. Most of the earlier decline was due to the de-
creasing consumi>tion of chewing tobacco, here and
abroad. This decline has proceeded without interrup-
tion for many years, but there are indications now
that, temi)orarily at least, the decline has been checked.
Considerable quantities of dark air-cured tobacco are
exported in the form of black-fat, and these exports
are being fairly well maintained. Altogether, no ma-
terial change in the world consumption of these types
is likely to occur during the ensuing year.

November 15, 1934

Just Enough Menthol to Cool and
Soothe Without Destroying
The Natural Tobacco Flavor

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

Y.

Y."'
Y. .

JESSE A. BLOCH. Wheeling. W. V». ..
JULIUS LICHTENSTEIN. New York, N.

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. New York. N. Y

CHARLES DUSHKIND. New York. N. Y

Headquarters. 341 Madison Ave.,

Vice-President

.Chairman Executive Committee

Vice- President

Vice-President

Vice- President

Vice- President

Vice- President

Treasurer

Counsel and Managing Director
New York City

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A. HOLLINGSWORTH. 2ii Broadway New York, N. Y President

CLIFFORD N. DAWSON. Buffalo, N. Y Executive Vice-President

JAMES C. THOMPSON, Chicago, HI Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. Kew 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

ABE BROWN. 180 Grumman Ave., Newark, N, J President

ALBERT FREEMAN, New York. K. Y First Vice-President

IRVEN M. MOSS. Treneon, N. J Second Vice-President

A. STERNBERG, Newark, N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE President

.SAMUEL MAGID, 2001 N. Mervine St., Philadelphia, Pa SecreUry

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC

E. ASBURY DAVIS, Baltimore. Md President

JOSEPH KOLODNY. 200 Fifth Ave., New York. N. Y Secretary

GEO, B. SCRAMBLING, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN • • President

HERMAN H. YAFFE, 301 Fox Building. Philadelphia, Pa Secretary

17

EtnblUhed 1886

"BEST OF THE BEST"

M»Buf*ctur«>d

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Ktp West. Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco iii«Ko%v and amooth in cbaract«r
and Impart a most palatable flavor

FUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
AKTUN. AIOMATIZEI. BOX PLAVOIS. PASTE SWEETENEKS

FRIES A BRO.. 02 Reade Street, Ne^ York

^mjMjmjmjmjMjji

Classified Column

The rate foi this column it three cents (3c.) a word, wHh
a minimum charge of seventy -five ^snts (76c.> payable
strictly in advance

iviri¥(lritrtyi\iy«>rtr«\i,y*>(iri^Ai.^^^^

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while line.
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3-story and concreted basement building adjacent to P. R. R.
freight station in York, Pa. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. See A. Kauff-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last PuflF,**
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa,
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, SEw^YoiiTcm

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 rertificnte, 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 aaditional charge of One Dollar (|1.00) will b«
made for every ten (10) additional titles necessarily reported.

REGISTRATIONS

FEDCO: — 46,384. For all tobacco products. Fred E. Druck & Co..

Dallastown, Pa., October 10, 1934.
BROAD-PAR:— 46,385. For all tobacco products. Fred E. Druck

& Co., Dallastown, Pa., November 9, 1934.

TRANSFERRED

HADDINGTON:— 45,303 (Tobacco Merchants' Association). For
cigars, cigarettes and tobacco. Registered July 26. 1928, by Benja-
nim Gorhtzer, New York, N. Y. Transferred to E. Popper & Co.
Inc., New York, N. Y.. May 5, 1931.

ADDITIONAL PHILADELPHIA NOTES

The Romeo y Julieta cigar (imported) is being
featured very thoroughly throughout this city with
good results.

Yahn & McDonnell report two new sizes of the
Optimo now being marketed in the Philadelphia Area
with marked success. They are front-marked Straights
and Conchas Extra, and retail at three for twenty-five
cents. Abe Caro, of the Optimo firm was in town
last week visiting the local distributors and was much
gratified at the showing on these new sizes.

Ben Lumley, Garcia y Vega representative in this
territory, has just returned from a verv successful
trip through northern New York State, including
Utica and Albany, and found business conditions in
that section decidedly improved. Mr. Lumley states
that the Garcia y Vega brand, distributed in this ter-
ritory through Yahn & McDonnell, is showing steady
increases, particularly in the Regalia size, and in the
Class C sizes.

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name.

Street No*.

P.O^

^tate.

DECEMBER 1, 1934

LlHFTARv

IIIIIIIIIIIIIIIIIIIIIIIIIIIIWWHH

DEC 7- 1934

No. 23

COMMON SENSE

The importance of attractive and dependable containers for
fine cigars is recognized by the progressive cigar manufacturer.

Generally the brands that are increasing their goodwill in this
present analytical market are packed in the new improved
A UTOKRAFT cigar boxes.

Cigar Manufacturers who have not investigated the value of
the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
AUTOKRAFT BOX CORPORATION.

Phila., Fa,
Hanover, Pa.
Cincinnati, Ohio

AUTOKRAFT BOX CORPORATION

Lima Ohio

A Nation. Wide Service

York, Pa.

Chicago, 111.

Detroit, Mich,

Wheeling, W. Va.

Illlllllllllllll

PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA.

After all
nothing satisfies like'
a good cigar ^

WOODEN BOXES

Are the Only Natural Humidor for Cigars.

Pack your cigars in wooden boxes and preserve
their delicate aroma, mellowness and flavor
right up to the time they are passed over the
counter to the customer.

Discriminating cigar smokers prefer to select
their favorite brand from a wooden box— and it*s
good business to cater to the dealer and con-
sumer by packing your cigars in wooden boxes.

WHEN BUYING CIGARS

R«iii«i«ib«r that Rcgardlcas of Price

THE BEST CIGARS

*ms PAOUB IN
WOODEN BOXES

THE TOBACCO WORLD

Vol. 54

DECEMBER 15. 1934

No. 23

HERE is cause for rejoicing over the tobacco
business figures for the month of October, as
rei)orted on page 5 of this issue. Cigar men,
particularly, have plenty of reasons for feelin<-
good Why shouldn't they, with the reports for Octo-
ber of this year revealing the best business in three
whole years! That total of more than 518 million
cigars, an increase of 16% per cent, over the same
month of 1933, is the best encouragement thev have
had m years. If this is an indication of the New Deal
working out, then certainly the cigar men will be for
that. The cigarette iigurc, nearly 10% ])illion, a gain
of more than a billion and a half, or nearlv 17 per cent.,
was nothing to be sneezed at, either. 'Speaking of
sneezes, it happens that snutT, which had been a source
of surprise to many who could not understand how it
kept to such a heavy volume when other tobacco prod-
ucts were losing, was alone behind the iirocession in
October, for manufactured tobacco also showed an in-
crease. Does this mean the revival of the cigar busi-
ness and of the tobacco business generally! It will if
everyone concerned in the business determines that it
will. Here's hoping.

Ct3 Cf] C?]

|HE suit to test the constitutionality of the Na-
tional Industrial Recovery Act, brought by
two cut-price chains in protest against the
price-establishing provisions of the cigar code,
is scheduled to come up in the United States District
Court in Phihideli)hia on December 4th. It is reimrted
that Kewton D. leaker and James M. Reck have been
engaged by the plaintilTs. Those who are most directly
and most vitally interested in the case are the great
body of cigar retailers throughout the country. They
are the ones who have profitecl by the j)rice-tixing regu-
lations against which the chains are fighting. They
are the ones who will sutYer, ag[iin, if loss-leaders are
])ermitted to become once more a i)art of the business
of merchaadisiiig cigars and other tobacco products.

CJ3 Ct3 Ct]

XDKR the heading **Rurgoo and Room," the
sprightly weekly newsmagazine, Titn^, gave a
characteristic report of Carroltoii, Kentucky's
first annual tobacco festival, participated in Ijv
1(),0(M) tol)acc() farmers, breezy as any i-oUege football
crowd. They gujTawed when a big l)lack hearse lum-
bered into position at the head of a half-mik» parade.
Eml)hizoned on its side was the legend: Old Tobacco
Prices — Six Fkkt Under the Sod. To the blare of a
forty-j)iece band they marclied through the l»usiness
streets of Carrol ton to the Henry County Tobacco
Warehouse. When somebody yelled, "C'mon folks, the
l)urgoo's ready!" they broke ranks, stampeded for the
warehouse platform.

After partaking of the burgoo stew, they listened
to the speakers, including Wood E. Axton, president of
Axton-P isher Tobacco Co, As president of the sixth
largest tobacco company in the U. S., says Time, Wood
J^. Axton is pre-eminently a buyer of raw tobacco,
not a seller. As such, he might be expected to favor
low leaf prices. Rut this farseeing Kentuckian, who
was once a grocery salesman, seized the opportunity
to publicize his interest in a square deal for Kentucky
tobacco farmers regardless of the consequence to him
or his company. From behind a rough-hewn speaker's
table in the warehouse he declared: **The leaders of
the AAA are honest, earnest men and not politicians.
... I would urge your continued co-operation with
these men . . . ." Espousing New Deal economics,
the man who threw a scare into big tobaccomen two
years ago with the 10^ package continued: ''The farm-
ing classes have been let down by too much profit-tak-
ing by industrialists. It is no wonder that the game
has been broken up. There has been too much take-
ont. The country cannot have prosperity unless the
producing class gets enough to buy back the products
of its labor."

Ct3 Ct3 C?3

N case you are interested in burgoo, listen to
the recipe of James T. Looney, best brewer of
burgoo stew in Northern Kentucky, who was
fetched over from Lexington to brew 1500 gal-
lons of the concoction for the Carrolton celebrants:
**Here are the ingredients for 1000 gallons of burgoo:
800 lb. lean beef with no bones; 200 lb. fat hens; 900
lb. canned tomatoes; 240 lb. canned carrots; 180 lb.
canned corn; 200 lb. cabbage; 60 lb. salt; 4 lb. pepper;
*my own seasoning'. Cook 18 to 20 hr. in iron kettle
(uit of doors over a wood fire. It is thicker than soup
and has a tlavor from the open air you can't describe."

Cj3 Ct3 Ct3

ORACCO WORLD records, with regret, the
passing of Thomas R. Yuille, ])rominent in the
tobacco industry for many years, at his home
in New York City, on Novem])er 22d, after an
illness of three years, at the age of sixty-four. From
the beginning, he devoted himself to the leaf tobacco
end of the business. He went from Duiham, X. C., to
the New York offices of the American Tobacco Com-
]»any in the days of James R. Duke, and, after the or-
ganization of the present company became vice-])resi-
dent under Percival S. Hill, in charge of leaf tobacco
interests. He resigned in IDKi and later became presi-
dent of the Iniversal Leaf Tobacco Co. In 192"»
he was elected president of the Tobacco Products Cor-
poration. He is survived by his widow, four daughters
and a sister.

^ ,Pn ^P^A^^9 WORLD (estabhshcd 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and treasurer;
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and ISth of each month. Subscriptions, avail-
able only to those engaged m the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter,
December 22, 1909, at the Post Office. Philadelphia, Pa., under the Act of March 3 1879

Kerr-Smith Tobacco Act

Growers Will Decide on Its Continuance in 1935

^IIK question of coiitiiiiiance of the Korr-Siiiitli
I- i Tol)aeeo Act in 19;)r) will be snl)nutted to j»r()w-
ers of four types of tobacco in a referendum
in December, the A^fricultural Adjustment
Administration recently announced. Persons -vvlio
own, rent, share-crop or control land customarily en-
gaged in the production of tlue-cured, Burley,' fire-
cured juid dark air-cured tobacco will be given an op-
portunity to vote in the referendum. The exact date
for opening the referendum will be specified by the
county agent in each county after he has received
printed ballots from Washington. These ballots now
are being printed. December 15 is fixed as the final
date on which ballots will be received throughout the
voting area. Administration officials hope to be able
to announce the results of the referendum bv Decem-
ber 20.

Owners, renters, share-tenants and share-croppers
will be given an opportunity to vote on the following
question:

"Do you favor a tax on the sale of (name of

the type of tobacco which differs in the sevenil voting
areas) tobacco for the crop year beginning May 1, 1935
as provided in the Kerr-Smith Act!"

The ballot for owners and renters asks the num-
ber of acres of tobacco harvested on the farm in 19o4,
while the ballot for share-tenants and share-croppers
asks the number of acres of tobacco harvested by the
share-tenant or share-cropper in 1934 "including both
your share and the landlord's share". In order that
the vote of every person may be related to specific
acreage, it is essential to have the cards identified
with the land that is owned, rented, share-cropped or
controlled by the person voting. .

One or more voting places will be designated in
each county. Before tlie opening voting day, county
agents will mail individual notices to all landowners
and renters and to share-tenants and share-crop])ers
W'hose names and addresses are availal)le, specifying
the time and place for voting in their locality. In
addition, the places and times for voting will be given
general publicity.

County agents will mail cards for use in balloting,
to persons who have not voted by December 8. Eligible
voters may sign these cards and return them by mail
or may leave them unsigned and return them in per-
son to the county agent. Cards mailed to voters will
be accompanied by a notice which will include a state-
ment of the closing date for receiving votes and will
advise the voter that if all other persons having an
interest in his land or in the ])roduction of tobacco on
the land in which he is interested, and who vote, favor
continuance of the Kerr-Smith Act, and if his vote
is not received by the closing date, it may be deter-
mined that he favors continuance of the Act.

Where ballots are cast in person, the balloting
will be secret. Ballots deposited at the voting places
by the voter need not be signed. Voters wiio find it
necessary to mail their ballots should sign the ballots
in order to prove their right to vote. Information
as to how^ anv person votes, however, is to be confiden-
tial.

The votes will be tabulated in .each countv. Im-
mediately after the county report has been prepared
and mailed, all voting cards received in the referen-
dum will be mailed to the Tobacco Section of the Ad-
justment Administration.

The basis for a referendum on the Kerr-Smith
Tobacco Act is contained in the Act itself, which speci-
fies that before the ad valorem tax in-ovided in the bill
may be levied for the crop year 1935-1930 it nmst be
determined "that the jiersons who own, rent, share-
crop or control three-fourths of the land customarily
engaged in the production of any type of tobacco fa-
vor the levy of the tax thereon.'*'

The Kerr-Smith Act levies a tax of 33 1-3 per cent,
of the gross first sale value of all tobacco (except
Maryland, Virginia sun-cured, and cigar-leaf tobacco)
harvested in the crop year 1934-35, but provides that
the Secretary of Agriculture may prescribe a lower
rate of tax (not less than 25 per cent, of the price
for which such tobacco is sold) if he determines and
proclaims that such lower rate will best effectuate the
declared policy of the Act.

The Secretary prescribed a rate of 25 per cent,
for the 1934-35 crop year. The tax is payable bv the
seller. Every first sale of the types of tobacco taxed
under the Act must be covered either by revenue
stamps or by tax-payment warrants.

In effect the tax falls upon growers who have not
entered into contracts with the Secretary. They are
obliged to purchase stamps. The Secretary is author-
ized to issue tax-payment warrants to growers wiio
have entered into contracts with the Secretarv and
to other growers for whom no equitable provision
could be made under the contracts offered by the Sec-
retary. Contracting growers are entitled to sell,
under tax-payment wa rants, all of the tobacco which
they are permitted, under their contracts, to market.
The quantity of tobacco which non-contracting grow-
ers in a county may sell under tax payment warrants
is limited to (J per cent, of the quantity which may be
marketed by contracting growers in such countv.

The Act further provides that if "the Secretary
of Agriculture determines that the persons who own,
rent, share-crop, or control three-fourths of the land
customarily engaged in the i)roduction of any partic-
ular type of tobacco favor the levy of the tax thereon
and that the imposition of the tax thereon is neces-
sary for the orderly marketing of such tobacco in in-
terstate and foreign commerce and to effectuate the
declared policy of this Act, he shall proclaim such
determination at least HO days prior to the next suc-
ceeding crop year, and the tax shall thereafter apply
to tobacco of such type harvested during the crop
year next following the date of such proclamation.*'
The beginning of the crop year as defined in the Act
is Mav 1.

County agents have the names and addresses of
all ov^Tiers or renters of tobacco land in their respec-
tive counties. More than 90 per cent, of these grow-
ers produced tobacco this year under contracts which,
at the discretion of the Secretary of Agriculture, may
be continued in 1935. Growers who have not signed

(Continued on Page 8)

The Tobacco World

Everything But Snuff Gains in October

HE following comparative data of tax-paid
products, indicated by the monthly sales of
stamps, are issued by the Bureau. (Figures
for October, 1934 are'subject to revision until

published in the annual report.)

Prodiicis
Cigars (large)

Class A No.

( 'lass B No.

Class C No.

(lass I) No.

Class E No.

-October —

19.U

414,979,210

8,143,383

06.138,986

4,856,931

337,809

1933

337,323,610

2,450,263

63,099,004

4,790,013

788,801

Total 494,456,319 408,451,691

Cigars (small) . .
Cigarettes (large)
Cigarettes (small)

SnutT, mfd

Tobacco, mfd. . . .

.No. 21,013,000

.No. 237,250

.No. 1(),718,132,()97
Lbs. 3,042,730

Lbs. 27,463,735

17,231,000

284,200

9,176,407,703

3,787,145

26,759,203

Tax-paid products from Puerto Rico (not in-
cluded in above statement) were as follows:

— Ocfaher —
Protfurts 1934 1933

Cigars (large)

Class A No. 6,289,955 7,509,850

Class B No. 237,350 .323,500

Class C No. 103,400 91,100

Total

6,630,705

7,924,450

(Mgars (small) No. 300,(J(J0 350/)OO

(.'igarettes (large).. No. 40,000

Cigarettes (small) ..No. 3(;o,.570 200,000

Tax-pa!d products from flie Philippines (not in-
cluded in above statement) were as follows:

— October —

Products 1934 1933
Cigars (large)

(Mass A No. 17,160,980 27,5(;4,095

Class B Xo. 10,153 18,20<)

Class C No. 60,276 21,250

Class D No. 500

(Mass E No. ... 1,700

Total

17,231,909 27,6(J5,245

Cigarettes (large)
Cigarettes (small)
Tobacco mfd

. No.
. Xo.
Lbs.

5!^2()0

mm

3,000
200,590

TOTAL WITHDRAWALS FOR PREVIOUS

OCTOBERS

1920 704,799,089 1926 r,64,496,623

1921 ()35,807,697 1927 (J88,921,203

1922 693,940,778 1 928 723,318,050

1923 711,()54,834 1929 701,710,936

1924 ()35,230,565 1930 623,8(J0,841

1925 711,222,189 1931 534,370,786

1932 436,832,436

December /, /pj^

1933

COMPARATIVE COLLECTIONS FOR OCTOBER

Sourc£ of revenue 1914

Cigars . ; $1,291,634.13

Cigarettes 32,15(5,394.23

^^nufT 547,691.44

Tobacco, c h e w i n g and

smoking 4,944,394.50

Cigarette p a p e r s and

tubes 82,245.40

Miscellaneous, r e 1 ating

to tobacco 357.46

$1,127,627.22

27,532,043.20

681,686.01

4,817,361.35

96,086.24

904.44

COLLECTIONS FROM AGRICULTURAL ADJUST-
MENT TAXES AND TOBACCO SALE TAX

Total
from Jidfj 1,
Month of 1934 {Fiscal
Commodity October year 1935)

Tobacco (tax effective Oc-
tober 1, 1933)

Processing tax . . , $2,-337,392.46 $9,396,751.13

Import compensating

taxes 7,909,26 94,995.86

Floor taxes 5,324.54 15,172.53

Total, tobacco . . .$2,350,(V26.26 $9,506,919.52
Tobacco sale tax 154,411.14 269,065.30

TRADE PRACTICE COMPLAINTS COMMITTEE

The National Recovery Administration on Novem-
l)er 17th announced approval of organization and pro-
cedure plans for the trade practice complaints commit-
tee of the Cigar Manufacturing Industry as follows:

Committee to consist of the following: F. P. Will,
G. II. P. Cigar Co., Philadelphia; Fred Davis, Schwab
Davis and Co., New York City; A. II. Gregg, American
Tobacco Co., New^ York City; W. Popper, E. Popper
k Co., New^ York City; M. Gryzmish, Alles and P'isher,
Boston; D. Osterweiss, Lewis and Son, New Haven,
Conn.; J. Driscoll, R. J. Sullivan and Co., Manchester,
X. H. ; P. Forristal, Congress Cigar Co., Newark,
X\ J.; B. Grabosky, Grabosky Bros., Philadelphia; A.
J. NewTTian, Bayuk Cigar Co., Philadelphia; E. Perez,
Benson and Hedges, Tampa, Fla. ; Con Just, Mazer
Cressman and Co.^ Detroit, ^fich. ; U. Trelles, M.
Trelles & Co., New Orleans, La.; A. Sensenbrenner,
A. Sensenbrenner & Sons, Los Angeles; A. Petri, Petri
Cigar Co., Inc., San Francisco ; AL Ibold, M. Ibold, Inc.,
(>incinnati, 0.; A. Worch, "Woreh Cigar Co., St. Paul,
Minn. ; J. C. Newman, M. & X. (J'igar Mfg. Co., Cleve-
land; J. Lampert, Jacob Lam])ert Cigar Co., St. Louis;
T. Ilorton, Van Slyke and Horton, Inc., Albany, X'. Y. :
\\. Best, Greneral fcigar Co., New York City; William
Boucher, AVilliam Boucher & Sons, Baltimore, Md.,
and a re|)resentative of Franklin and Co., Chicago.

Christmas Cigar Sales Will Be
Big. Get Your Share of Them.

m

MIA.

HOLIDAY CHEER AT BAYUK'S

OLIDAY c'olort'uliiess charaeterizos the window
displays in the locoption room of Bayuk liead-
(luartors at Xinth and C'ohnid)ia Avenue. The
Christmas ])aekages are attraetively sliown
asrainst a red and white haekgronnd, with Videtide
eanttles, and the ap])ropiiate suiiuestion that J^ayuk
Phillies gratify . . . The Foremen's Cluh, com-
posed of keymen of industrial estahlishnients,
has been making trii)s through the plant in relays
. . . Al Mendelsohn, of Meyer & Mendelsohn,
Hartford, Conn., was a recent visitor . . . Walding
Kinman & Marvin, of Toledo, ()., assisted by II. E.
Johnson, B. S. ( Bayuk salesman) recently linished a
drive which materially increased the (list vibut ion of
Phillies in that territory and created a number of new
l)lacements . . . B. W. Burnside strolled into head-
quarters over the weekend and aimounced ho had one
of the best weeks ever in Pennstrrove, X. J., where
F. W. Layton & Son are the distril)utors . . . Frank
Sandsky has just returned to head([uarters after liav-
ing com])leted a sj)ecial sales i)romotion campaiirn in
Des ;M<Mnes, la., for Myers Cox Co., distributors . . .
Henry Freeman Co., Worcester, Mass., are making a
drive on Phillies in their sector, with the aid of C. E.
Miller. Bavuk salesman.

ENTHUSIASM AT G. H. P.

F you can't down Frank P. Will, executive vice-
piesident of G. H. P., with leports of losses in
the cigar figures (because he can always lind
something encouraging in them) how do you
think he felt about the big gains in ()ctol)er! You're
right. He was just the most enthusiastic ciirar man
aiound these parts . . . \Vh(»n your reporter called at
Third and Brown, the l)oss was out of town, as usual,
spreading the gospel of good cigar business in the
offing, as was his almost -as-itinerant aide, I). A. Jenks,
assistant sales manager, who was ])reaching the same
gospel to the members of the Xewark and X>w York
branches . . . The ground floor offices are decorated
with two l)eautifnl disjjlays, one over the entrance
door exploiting La Azora in a setting of Christmas
in the countryside, and another on the far wall of the
office depicting Santa Clans wishing Merry Christmas
and intimating that El Producto is essential For Real
Comfort . . . Holiday orders are exceeding the com-
l)anv's expectations, with a lot of extras that were not
anticipated.

6

Trade Notes

Grabosky Bros., Inc., report business holding a
good steady pace on their brands, with every indication
uf good business for the holiday period.

Mr. Brown, of the Ambassador Hotel Cigar Stand,
Atlantic City, is spending some time on a vacation trip
on the Island of Cuba.

The new size of the Blackstone cigar, known as
the Yankee, and retailing at two for fifteen cents, is be-
ing well received in this territory. This brand is dis-
tributed here bv Yahn & McDonnell.

Harry Haines, well-known York County cigar
manufacturer, and mendjer of Congress from his dis-
trict, was a visitor in town this week, renewing ac-
quaintances in the trade.

The Don Sebastian cigar, distributed in this terri-
tory by John Wagner & Sons, and a product of Arango
y Arango, Tampa, Fla., is enjoying a splendid increase
in demand this vear as compared with the same period
of 1933.

At Yahn & McDonnell headtiuarters, distributors
of cigars, tobacco and smokers' accessories, there is
every evidence of the reported ui)turn in business,
lousiness with this firm is showing marked increases
over the same j)eriod of the previous year, and in
further proof <»f this increase, this firm has recently
added two new employees to their office and shi])ping
forces, making a total of seven additional emjjloyees
since August of this year.

John Wagner & Sons, Dock Street distributors,
report business showing very marked improvement,
and their Wagner and Monticello brands of cigars
showing uj) particularly well, with their Wagner Xo. 3
brand of smoking tobacco also r<*gisteiing a fine in-
crease in distributi(m and demand. This lirm also re-
ports orders for holiday business are already coming
in in good volume and jirospects point to a very good
holidav business for this vear.

The 'I I'horro H'orld

TIRED OUT?.

'k

»

\

it»ft'<

\

%

^

^-t

# Above is Ray Baker, star newspaper
man of the International News Service...
snapped by the camera at his job. He says:
"A big story breaks and I am on the desk
for ten hours ... twelve hours ... working
at top speed! Whenever I feel 'all in,'
Camels bring back my 'pep.' For over ten
years I've preferred Camels — I can smoke
them continually without jangled nerves."

LEAF-TOBACCO
EXPERTS AGREE:

Camels are made from
finer, More Expensive
Tobaccos —Turkish and
Domestic — than any
other popular brand. "

CARTOONIST.

Chon Day says: "I
often work 10-11-12
hours at a stretch
and am smoking
Camels all the time.
They increase
my 'pep' and never
upset my nerves."

GIRL EXPLORER.

Mrs. William La-
Varre says: "Any
time I'm tired a
Camel wakes up my
energy. Smoking
Camels steadily
does not affect
one's nerves."

*• M'^A

T

''^-*\ >^^ VVH»^^

^nff"

Listfm Every Tuesday and Thursday Sight
to the New

CAMEL CARAVAN

featuring

WALTER O'KEEFE • TED HUSING

ANNETTE HANSHAW

GLEN GRAY'S CASA LOMA ORCHESTRA

TUESDAY

10:00 P.M. E. S.T. 8:00 P.M. M.S.T.

9:00 P.M. C.S.T. 7 :00 P. M. P. S. T.

THURSDAY

9:00 P.M. E. S.T. 9:30 P.M. M.S.T.

8:00 P.M. C.S.T. 8:30 P.M. P. S.T.

Over Coast-te-Caast W ABC-Columbia Setwork

HOCKEY STAR.

Bill Cook says: "I
smoke only Camels.
Their taste sure hits
the spot! I smoke
all I want and I find
that Camels never
get on my nerves
or tire my taste.'"

i«^^

Copyright. 1!»34.

B. J. B4>yni)ltU Tobacco

roinpanjr

CAMEL'S COSTLIER TOBACCOS

NEVER GET ON YOUR NERVES!

December i, igs4

Stock of Leaf Tobacco in U. S.

fe^f^;

TOCKS of loaf tobacco in the Uiiitod States
owned by dealers and niannfactnrers amounted
to 2,199,781,00(1 i)ounds on October 1, 1934,
coni])ared with 2,008,().*'»5,000 ])ounds on Octo-
ber 1, 19o3. This is an increase in the total stocks of
191,14f>,(H)0 ])onnds over the stocks of a vear au:o Octo-
ber 1st. From July 1, 1934, to October 1, 1934, total
stocks decreased 14,216,000 pounds, while during the
same ])eriod of 1933 the decrease amouuted to 90,402,-
000 pounds.

Stocks of fkie-cured to])acco on hand October 1,
1934. amounted to 758,709,000 pounds, com]iared with
60."),710,000 pounds on October 1, 1933, an increase of
152,999,000 pounds. The stocks of Ty])e 11 on October
1, 1934. were reported as 281,287,000 pounds; Tv])e 12
as 272,813,000 pounds: Type 13 as 153,423,000 ])ounds;
and Type 14 as 51,18(),000 iiounds.

Stocks of fire-cured tol)acco were re])orted as 187,-
831,000 ]iounds on Oclol^er 1, 1934, com]iared with
196,439,000 pounds on October 1, 1933. Total tire-cured
stocks were 8,608,000 pounds lower than they w^ere a
year airo October 1st, and 28,843,000 pounds lower than
on July 1, 1934. Viririnia fire-cured. Type 21. stocks
reported as 27,655,000 pounds were slisrhtly hitrher than
a year aero. Type 22 of the Kentucky and Tennessee
fire-cured reported as 125,116,000 pounds on October

1, 1934, shows a decrease for the quarter of about 11
million ])oun(ls. (Note the correction of the July 1,
1934, figures.) Type 22 stocks were a little over 13
million pounds lower on October 1st of this vear than
they were on October 1, 1933, while Type *23 stocks
which wei-e re])orted as 30,896,000 pounds on Octo])er
1, 1934, were about 4 million pounds higher than a
year ago. Henderson Stemming, Type 24, reported as
4,164,000 pounds on October 1, 1934, showed little
change.

Burley tobacco stocks were about 84 million
pounds higher than they were a year ago, and 64 mil-
lion pounds lower than on Julv 1, 1934. The October 1,
1934, report shows 700,173,000 pounds of Hurley on
hand. Maryland tobacco stocks were about 5 million
pounds lower than a year ago. The October 1, 1934,
report shows 35,577,000 pounds of ^faryland tobacco
on hand.

One-Sucker stocks on October 1, 1934, amounted to
31,893,000 pounds, about 4 million pounds lower than
on Julv 1st of this vear and slightlv higher than a vear
ago. Green River stocks reported as 31,655,000 pounds
on October 1st were about 5 million pounds lower than
a year ago. Virginia Sun-cured stocks were reported
as 2,026,000 pounds, Miscellaneous Domestic, 2,259,000
])onnds, and foreign-grown cigarette tobacco stocks,
68,313,000 pounds on October 1, 1934.

Cigar Leaf Tobacco Stocks

Stocks of American grown cigar filler types
amounted to 167,138,000 pounds on October 1, 1934,
c^»m])ared wnth 173,488,000 pounds on Octolier 1, 1933.
The decrease in filter tvpe stocks for the quarter from
July 1 to October 1 of 1934, was 7,298,000 ]iounds, com-
pared with a decrease of 3,929,000 ]>ounds for the same
period of 1933. Tvpe 41, Pennsvlvanin S(»edleaf stocks
on October 1, 1934, were 91,695,000 pounds; Tv])e 42,
Gebhardt, 22,024,000 pounds; Tvpe 43, Zimmcr, 26,240,-
000 pounds; Type 44, Dutch, 7,060,000 pounds; Type
45, Georgia and Florida Sun-crrown, 1,620,000 pounds;
and Type 46. Porto Rican, 18,499,000 pounds. About
74 per cent, of the total filler tvpe stocks reported are
shown in the C group in the detailed report as beinir
actual filler grades, and about 25 per cent, in the X
group or stemming grades.

The cigar binder type stocks were about 9 million
pounds lower on October 1st of this year than on
October 1, 1933. Total binder tvpe stocks were re-
ported as 191,104.000 pounds on October 1, 1934. Con-
necticut Valley Broadleaf stocks were reported as 35,-

740,000 pounds; Connecticut Havana Seed, 34,011,000;
Xew York and Pennsylvania Havana Seed, 2,704,000
pounds; Southern Wisconsin, 75,531,000 pounds; and
Xorthern Wisconsin, 43,118,000 pounds. The detailed
report by groups of grades shows that of the total
binder type stocks reported 4,149,000 pounds are of
wrapper quality, 69,895,000 pounds are binders, 9,252,-
000 pounds are fillers, and 107,539,000 pounds are stem-
ming grade or X group tobacco.

Shade-grown wrapper type stocks were about 2V2
million pounds lower on October 1st than they were a
year ago. Connecticut Valley Shade stocks were re-
ported as 8,685,000 pounds, and Georgia and Florida
Shade as 4,150,000 pounds on October!, 1934. Of the
total of 12,835,000 pounds of shade tobaceo reported,
8,794,000 pounds were reported in the A group as being
of actual wrapper quality.

Foreign-grown cigar leaf tobacco stocks were re-
ported as 10,268,000 pounds on October 1, 1934, com-
pared with 11,617,000 pounds on October 1, 1933.

Kerr Smith Tobacco Act

{(Unituiurd Fnnn Pnrjr i)

Burley — Type 31; grown in Kentucky, Tennessee,
< >liio, In<liana, West Virginia, Missouri, Virginia and
North Carolina.

Fire-cured — Types 22, 23 and 24; grown in South-
ern Virginia; Western Kentucky and West<M'n Ten-
nessee.

Dark Air Cured— Ty])es 35 and 36 (Ouo Sucker
and Or«'(ii Iii\ cr) ; grown in Western Kentucky and
Western Tennessee.

$

contracts will be given an opportunity to sign con-
tracts for 1935. Both contracting and non-contract-
ing growers will have opportunity to vote.

The principal areas in which th«' several types <»f
tobacco affected by the referendum are grown are:

Flue-cured— Types 11, 12, 13 and 14 as defined by
the Bureau of Agricultural Economics; grown in Vir-
ginia, North Carolina, South Carolina, Georgia, and
Florida.

The Tobacco World

Dectmber i, 1934

THIS CHRISTMAS WRAPPER WILL ATTRACT

"HER" EYE

• Yjrj^^^^KX haven't eomo to sniokiiii*' ciij:ai's — ift^A
\fi^ • . . hut thov do ])iiy a lot of cipirs in boxes
for Christmas gifts. Bayuk a])i)arentiy reoog-
nized this feminine angle in designing this
year's Christmas wrapper for the Philliks box. The
predominating eolor of the wra])per is a deej), rich blue,
with an old-time Christmas scene on the to]) in rich
reds, green and gold.

In making this year's wrapper e%'en more colorful
and attractive than the one used last Christmas —
Bayuk has sacriticed nothing in display value. In fact
the wrapper this year has even greater attention value
on the counter.

The value of the Bayuk Christmas wrapper has
been recognized bv dealers who sav that thev get a
larger share of the Christmas gift business by reason
of the fact that the Bayuk Christmas package lends
itself to display and gives a more '* Christ nuisy" at-
mosphere to the store.

CIGAR-LEAF TOBACCO

The outlook for cigar tobacco has improved. How-
ever, burdensome supplies and restricted outlets,
especially for the stemming grades, continue to face
growers. The decline in cigar consum])tion has been
checked but the consumption of scrap chewing to-
bacco continues to decline. Even after the serious
oversupply situation of recent years has been coi-
rected, farmers will be obliged to continue production
at a level much below that of IJK'U and i)revious years
if improved prices are to be inaintained.

Tax-paid withdrawals r>f cigars for the nine
months ending with September WP'A were about 2 ])er
cent, larger than for the same period in VX^:^, l)ut
about 30 per cent, below the average for the five-year
period 1926-30. Available information indicates that
the consumption of scrap chewing tobacco h<is declined
around one-third during the last three years. During
the last year the decreased use of cigar tobacco in ])ro-
duction of scrap chewing more than offset its increase<I
use in cigars.

Estimated production of domestic cigar tobacco
in 1933 was ap])roximately 3.'),0()(MHH) pounds less than
consumption, thus result inu: in a reduction by that
quantity in stocks (including farm stocks) held on

lO

October 1, 1934 from those of a year earlier. Early
estimates of production and consumption for 1934 in-
dicate that stocks will further decrease by approxi-
mately the same quantity by next October 1.

As compared with the normal relation of stocks
to consumi)tion, present stocks are still excessive.
Those of October 1, 1934 were equivalent to approxi-
mately 4.4 years' consumption, wliereas from 1934 to
1929 stocks averaged 2.4 times the annual consump-
tion. The reduction in stocks during the last year
was equivalent to approximately one-third of a vear's
consumption.

October 1 estimates indicate a 1934 crop of cigar
tobacco of 70,5()9,000 pounds. This is the smallest
cro]) rejmrted for cigar tobacco districts since 1869.
Production of filler types for 1934 is estimated at 36,-
ir)5,000 pounds, binder types 27,431,000 pounds, and
wrapper ty])es 6,983,000 pounds. Approximately 92
per cent, of the growers operated in 1934 under adjust-
ment contracts with the Agricultural Adjustment Ad-
ministration. Under the terms of these contracts, the
reductions made in acreage in 1934 mav be continued
in 1935.

Tobacco plantings in Puerto Rico for the 1934-35
crop are ex])ected to be about 33 per cent, smaller tluni
those of 1933-34. The import duty on tobacco and
tobacco products from Cuba was reduced under the
Reciprocal Trade Agreement between Cuba and the
United States, effective September 5, 1934, but the
quantity of such tobacco and tobacco products (un-
stemmed equivalent) which may be imported during
any year is limited to 18 per cent, of the quantity of
tobacco used in cigar factories in the United States
during the preceding year. The percentage relation-
ship is approximately the average of the last ten years.

EXEMPTION RECOMMENDED

HE Industrial Appeals Board has recom-
mended that the Continental Briar Pipe Com-
pany, Inc., Brf)oklyn, X. Y., be granted exenqi-
tion from the smoking pi]>e industry code
provision restricting the number of api)rentices which
may be paid subminiimnn wages to five ])er cent, of the
total number of em])loyees. The recommendation is
l)eing studied by the National Recovery Administra-
tion, and an early decision is expected.

The Continental Briar Pipe Company is n(»w (»per-
ating its Brooklyn plant at full capacity, and desires
to establish a new factory at South River, X. J., to meet
the rapidly increasing demand for its product. It was
sho\yn that there are no unemployed skilled workers in
the industry, and that the company can not train new
help within the five per cent, limitation of the code.
The process of training new workers, the A)>peals
Board found, is very expensive, and emf)loying learners
at the minimum code rate would not result in any finan-
cial advantage to the employer.

The company had also asked for permission to |)ay
apprentice rates for a learning perio<l of twelve weeks,
instead of six weeks as |)rovided in the code, and the
XRA had denied the apj>lication. The Appeals Board
uiiheld this denial on the ground that no evideiK-e was
presented which proved that this em|)loyer or the em-
ployees of South River, X. .1., require n hinirer period
with res|)ect to learning the business than is re<juired
elsewhere in the industrv.

The Tobacco World

K

JIUULJ

\m

iiiWi^ III,

iiwrn

[^\B\

M^

News From Congress

f. 'AND

Ft D E R A L

Departments

EMBERS of the subconnnittee on internal rev-
enue taxation of the House Ways and Means
Committee will meet early in December for the
consideration of tax questions, but it is antici-
pated that Government tax experts will counsel against
any general revision of the present law if any^iove
i^» lljJif direction is made when Congress convenes.
Possibilities that the agitation for a reduction in the
tobacco taxes will be revived if the revenue law is
opened for broad amendment are said to be one of the
reasons for disinclination to enact a totally new tax
law, although the major aim is declared to be the re-
assurance of business, now apprehensive of a further
buiden of taxation which would add to industrial de-
pression.

However, ]n-ovisions of the present law under
which some $4()0,000,(K)0 a year are secured will expire
by statutory limitation at'the beginning of the year,
and some consideration will have to be given this situ-
ation. The matter undoubtedly will be dealt with in
the President 's budget message in January.

All branches of the tobacco industry are reported
to Washington as restive under the heavy burden of
taxation threatened by the processing taxes, and it has
been indicated that the convening of Congress will be
a signal for renewal of the drive nnide last session for
a 40 per cent, cut in tobacco tax rates.

Whether the Ways and Means Subconnnittee will
go into this phase of the tax jiroblem has not been made
kno\yn. Its initial consideration will be given to the
administrative provisions with a view to develoi)ing
l)Ossibilities of cutting red tape to expedite the collec-
tion of taxes.

CS3 C?3 Ct)

FFURTS will be inatle by Administration lead-
ers to have the coming session of Congress
as short as possible so as to minimize the build-
ing u\) of minority groups and the development
of political and sectional controversies. H' possible,
the President would like to have the session adjourn
in the early spring and at any rate not later than May
lOth. For \\w imst three vears Congress has liny-ered
on well into the summer, largely due to the refusal of
the Senate to place any limitations upon its own dis-
cussions. In the House, the rules are such that busi-
ness can be i'Xpedited.

Early adjournment, of course, depends on the
reaching of an agreement l)etween leaders as to the
legislative program, but President Roosevelt has al-
ready informed his lieutenants in the House that he
desires that all appnqiriation bills shall be brought up

December i, 1934

From our Washinotow Bureau e^ZkJ6HE. Bmipwe

and disposed of before any other legislation is con-
sidered. This will preclude any undue lengthening of
the session by delaying the introduction of anv of the
money bills, a device which has been resorted to in the
past when Congress wished to remain in Washington
over the objections of the Administration.

A number of important subjects will have to be
dealt with by Congress during the coming session, in-
cluding reorganization and perpetuation of the Na-
tional Recovery Administration, continuance of the
Reconstruction Finance Corporation, amendment of
the Agricultural Adjustment Act and appropriations
tor relief and Public Works Administration. It is also
l)lanned by the Administration to have the social in-
surance program acted upon.

Other matters, either sponsored by the Adminis-
tration or to be brought up by members themselves,
include the soldiers' bonus, the St. Lawrence seaway
treaty and public utilities legislation.

C?3 C?3 CJ3

ETP:XTI0X of the three-cent rate of postage
on lirst -class mail for at least another year will
be recommended to Congress in January by
Postmaster (Jeneral Farley. It is estimated
by the Post Office Department that the additional cent
re(piire(l on tirst-class mail has returned a revenue of
$7r),(MjU,()()() a year. The Postmaster GeneraPs an-
nouncement that he will seek continuance of the pres-
ent rate came as no surprise, despite his recent claim
that the postal service made a profit of more than
$12,U(){),00() during the fiscal year ended June 30th, last,
** after adjustments for subventions and free mailing
serviee'\

The ''adjustments" to which Mr. Farley referred
consisted of writing off the books some $64,0()0,(X)0, the
official Treasury statement for the fiscal year showing
that the postal service had a deficiency of $52,000,000.

CJ3 Ct3 Ct3

FEDERAL charters for all business corporations
are advocated by Ferdinand Pecora, who
served as counsel for the Senate Committee
which investigated Wall Street and is now a
member of the Securities and Exchange Commission,
and legislation on the subject may be asked of Con-
gress during the coming session. Agitation for a Fed-
eral law is based on charges that many of the abuses
uncuyi'ietl during the Wall Street probe were made
possible by incorporation of companies in states whose
statutes are loosely drawn.

ti

p. LORILLARD COMPANY, Inc.

119 West 40th Street • New York City

Is ofFering an unusually attractive line of Christmas Wrapped
Packages this year . . . packages that will help you sell Merchandise

TOBACCO TRADE ORGANIZATIONS

TOBACCX) MERCHANTS ASSOCIATION
OF UNITED STATES

<^^

JESSE A. BLOCK. Wheeling. W. Va President

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

RETAIL TOBACCO DEALERS OF AMERICA. INC.

WILLIAM A. HOLLINGSWORTH, 233 Broadway New York, N. Y President

CLIFFORD N. DAWSON. ButTaio. N. Y Executive Vice President

JAMES C. THOMPSON, Chicago. Ill Treasurer

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

iOHN H. DUYS. Kew York Citv President
IILTON 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

ABE BROWN. 180 Grumman Ave., Newark. N. J President

ALBERT FREEMAN. New York. N. Y First Vice-President

IRVEN M. MOSS. Trenton, N. J Second Vice-President

A. STERNBERG, Newark. N. J Secretary

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE President

SAMUEL MAGID, 2001 N. Mervine St., Philadelphia, Pa SecreUry

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

E. ASBURY DAVIS. Baltimore. Md President

JOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y SecreUry

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN President

HERMAN H. YAFFE. 301 Fox Building, Philadelphia, Pa SecreUry

13

CIGAR COMPLIANCE TRIALS

K. HAAIMOXI) ClIAFFETZ, Special Assistant
Aitoriioy Gciieral assigned to defend actions
tor tliL' C^ode Autlioiity and the NRA, has ar-
ranged with the Court and attorneys for the

phii 111 i It's to commence the hearings on such cases on

Tuesday, December 4th.

The three National Code Authorities, Retailers,
JublxMs and Cigar Manufacturers, will cooperate in
securing the material for these trials.

The Retailers' Code Authority has established an
oftice in Philadelphia, also a trained stalf of field oper-
ators from the national headquarters in this trading
area and engaged other local personnel to carry on the
compliance and enforcement work in this territory.

Harry Tint, chairman of the Philadelphia Code
Authority, called a meeting of the Philadelphia retail-
ers Monday night in the Hotel Adelphia. All the prin-
cipal dealers and chain store representatives in the citv
attended tlie meeting. William A. Hollingsworth, chair-
man of the National Code Authority, and Siegfried
llartman, general counsel for the National Code Au-
thority, addressed the meeting and assured tlie retail
dealers that every available agency was being emi)loyed
to vigorously prosecute any violators of the Code, also
to defend tlie suits brought by the Sunray and Nevins
chains.

The retailers present passed a resolution to sup-
port both the Local, State and National Code Authori-
ties in every respect, and observe strict comj)liance with
the provisions of the Code and Cigar Merchandising
Plan while awaiting the action of the Court upon the
injunction suits. This vote of confidence for the Code
Authorities manifests the general attitude of the Phila-
delphia retailers.

It is al)solutely essential that these cases be brought
to trial next Tuesday. The unfair advantage enjoyed
l)y the two violators of the Code must be removed within
the next fe\y days, or the holiday business anticipated
by the retailers in compliance will be seriously jeop-
ardized.

It is believed that these two violators are members
of a group which has determined to destroy the Cigar
Merchandising Plan. There are about fifteen links in
this chain of local chains, the i)rincipal leader ])eing the
Katz Drug Company in Kansas City.

Mr. Hollingsworth cited this to the retailers in his
address to them, stating that the real issue at stake in
these pending litigations was whether the Katz Drug
Company in Kansas City was going to set retail prices
for tobacco products throughout this country, in defi-
ance of a Code apj)roved by the President of the United
States, after months of investigation, or whether the
oight hundred thousand retail tobacco outlets were
going to be permitted to enjoy the minimum prices
n-^nred them bv what is in effect the law of the countrv.

Mr. Hartman outlined the procedure and clearly
(explained the status of the cases.

Latest re|)orts from the Litigation Division of the
NRA indicate that Mr. Chaffetz has these suits well in
liaiid and that he j)roposes to proceed in all of the mat-
ters involving violations of the tobacco Codes with
vigor and precision.

Evidence is being developed in two or three other
minor cases, and once the Philadelphia case has been
cleared away, the less important violators will immedi-
ately be brought into court and prosecuted.

The Tobacco World

DON'T MISS

AND

RADIO'S SENSATIONAL LAUGH TEAM

WITH JOSEF BONIME'S ORCHESTRA AND GUEST STARS

Don't miss the sales they're building for

PICK and PAT and

Baltimore WPBR

Boston

WEEI

Buffalo

WBEN

Chicago

WMAQ

Cincinnati

WSAI

Cleveland

WTAM

Denver

KOA

Des Moines

WOC-WHO

Detroit

WWJ

Duluth

WEBC

H[artford

WTIC

BONIME'S ORCHESTRA

Friday

Saturday

Friday

Friday

Friday

Friday

Monday

Friday

Friday

Tuesday

Friday

Kansas City
Los Angeles
Madison
Milwaukee
New York
Omaha
Philadelphia
Pittsburgh
Portland, Me.
Portland. Ore.

ore presented wee

WDAF

KNZ

WIBA

WTMJ
WEAF
WOW

Saturday

Tuesday

Wednesday

Friday

Friday

Friday

WFI-WLIT Friday
WCAE Friday

WCSH Friday

KEZ

Wednesday

SEE YOUR LOCAL EVENINC PROGRAM LISTINGS

' over the following

Providence WJAR

Richmond WRVA

St. Louis KSD

St. Paul KSTP

Salt Lake City KDYL

San Francisco KGO

Schenectady WGY

Seattle KJR

Spokane KHQ

Washington WRC

Worcester WTAG

stations :

Friday

Tuesday

Friday

Monday

Monday

Friday

Friday

Tuesday

Tuesday

Friday

Friday

DILL'S BEST

AND

Ti

Cigars Up Over 176 Millions in 10 Months

Cifjfars :
Class A —
rnitod States .
Puerto Rico . . .
Philippine Is. .

1st 10 Mns.
Cat. Yr. 19S4

3,288,971,575

48,309,575

162,470,815

+

— Decrease

-{-Increase

Quant if if

154,470,425

1,374,080

15,341,145

Total 3,499,751,965 + 171,185,650

Class B—

United States. .
Puerto Rico . . .
Philippine Is.. .

Total

Class C—
United States. .
Puerto Rico . . .
Philippine Is.. .

Total

Class D—

United States. .
Puerto Rico...
Philijipine Is.. .

Total

42,285,179 +

1,504,550 —

.3:^9,654 +

19,822,263

1,098,500

173,254

44,129.383 + 18,897,017

448,040,998 —
632,600 -f
171,644 —

8,352,256

72,220

4,422

448,845,242 — 8,284,458

31,682,(»25 —
1,500 -I-
1.750 +

4,089,505

1,000

374

31,685,275 — 4,088,131

Class E—

United States..
Puerto Rico . . .
Philippine Is.. .

Total

Total All Classes :
United States. .
Puerto Rico . . .
Philippine Is.. .

2,489,783 —
765 —

2,490,548

3,813,469,560

50,448,225

162,984,628

4-

1,096,137
""ii857
1,097,994

160,754,790

348,8(K>

15,508,494

Grand Total .. 4,026,902,413 + 176,612,084

Little Cigars:

United States. .
Puerto Rico . . .
Philippine Is.. .

Total

Cigarettes :

United States. .
Puerto Rico . . .
Philippine Is.. .

Total . . , ♦

Large Cigarettes:

United States. .
Puerto Rico . . .
Philippine Is.. .

Total

SnutT (lbs.):

All U. S

Tobacco (mfd. lbs.) :

United States. .
Philippine Is.. .

Total

196,535,240
2,091,000

7,800

-f

16,934,987

883,000

7,800

198,634,040

+ _

16,059,787

106,674,419,683
3,475,020
1,588,620

+

9,545,640,950
399,420
364,110

106,679,483,323

+ 9,546,404,480

87,706,535

426,000

200

+
-f _

85,510,200

279,000

7,737

88,132,735

85,223,463

31,362,893

42,551

262,426,985
28

—

388,232
141

262,427,013

388,373

Send Two Dollars, with the coupon below to The
Tobacco World, 236 Chestnut St., Phila., Pa., and
get your copy twice a*inonth for a year.

Name

Street No-
P.O.

-State.

December i, 1934

U

\

/ I

Eatabliihed 1886

"BEST OF THE BEST"

'i^^^^ A. SANTAELLA & CO.

Office, 1181 Broadway, N«w York Citjr

FACTORIES: Tampa and Kep West. Florida

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Mak« tobacco meltow and smooth in characlet
and Impart a most palatable flavor

FUYORS FOR SMOKING and CHEWING TOBACCO

Write for Llat of Flavors for Special Brands
BKTUN. AIOMATIZEI. BOX FLAVOBS. PASTE SWEETENEIS

FRIES & BRO.. 02 Reade Street, Ne>v York

\t/JlV»A'^VrA»ATk!»A'iV»A''VfvrAfCWJlV^^

!/,1V»y,'lW,t'.» • •.'JAt/."Av.'Lv»>',",V»/>''

Classified Column

The rate foi this column is three cents (3c.) a word, with
a minimum charge of seventy-five cents (75c.) payabU
strictly in advance.

m\ui itww

irr«^^y#(:r/svi.^rivir^iY«VMyiC/sv¥/tt^^^

'•\"V4Vi."^\',"/i

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580, "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS* EXPERIENCE ON

Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with nie in reference to worth-while line.
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30,000 SQUARE FEET D.^Y-LIGHTED FLOOR SPACE IN A
3-story and concreted basement building adjacent to P. R. R.
freight station in York, Pa. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. See A. Kaufl-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci-
gars." Specially those Havana blended, "Good to the last Puff,"
manufactured by A. Ramirez & Co., Post Office Box 1168, Tsunpa,
FIa. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, new^yoS'cI^

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 ($1.00) 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.

REGISTRATIONS

GATEWAY: — 46,386. For cigarettes and smoking tobacco. Union
News Co., New York, X. V., November 3, 1934.

WILLIAM McCRAW:— 46,388. For cigars. A. M. Robinson, Dal-
las, Texas, October 31, 1934.

TRANSFERS

GATEWAY:— 14,521 (Tobacco Leaf). For cigars. Registered Jan-
uary 10, 1898. by Shaw & Kirkland, Utica, N. Y. Transferred to E.
Popper & Co., Inc., New York, N. Y., and re-transferred to Union
News Co., New York, N. Y., November 9, 1934.

CRESTWOOD:— 28,147 (Trade-Mark Record). For cigars, ciga-
rettes and ti^bacco. Registered March 17, 1903, by Hcywood, Stras-
ser Litho. Ci»., New York. N. Y. Through mesne transfers ac-
quired by Consolidated Litho. Corp., Brooklyn, N. Y., and
re-transferred to Garcia (Jrande Cigars, Inc., New York, N. Y.. No-
vember 14. 1934.

EL GRAN TRIUNFO:— 5,957 (U. S. Tobacco Journal), and 1,210
(Tobacco Leaf). For cigars. Registered March 22, 1886, and
March 23, 1886, re^^pectively. by Witsch & .Schmitt, New York,
N. Y, Transferred by Consolidated Litho. Corp., Brooklyn, N. Y.,
successors to the original registrants, to the A. & B. Cigar Co.,
Tampa, Fla., November 14, 1934.

CORRECTED PUBLICATION— Registration

BROAD-PARK:— 46,385. For all tobacco products. Registered by
Fred K. Druck & Co., Dallastown, Pa., November 9, 1934.

YAHN & McDonnell notes

The (larcia y Vega brand, distributed by Yahn &
McDoiiiu'lI, i.s enjoying a good demand here, under the
able promotion of Bvn Luniley, faetory re|jre.senlativ©
for the (jareia y Vega factory.

The new lioliday jniekage of l»lue 15oar tobacco is
})elng shown by Vahn «fc McDonnell, and consists of one
Ijound of J51ue J^oar tobacco and one Dr. Watson, Sr.,
jjipe, the coml)ination retailing at .$2.25. J5ought singly
the two items would cost the purchaser $3.7').

John Flanigan, manager of the 'SI. J. Dalton stand
at ()I7 Chestnut Street, has another of his famous
window displays this week showing the seven different
kinds of leaf tobacco that are used in making the D. &
M. No. 1 smoking mixture. A small parcel of the raw
leaf tobacco is shown together with a map showing the
seven dilTerent parts of the world from which these line
tobaccos are procured. The display is toi)ped otT, of
course, by an open can of the D. & M. No. 1 mixture,
showing that this mixture is cut especially for the pipe
smoker to enable him to get the utmost satisfaction
out of his pipe.

DECEMBER 15, 1934

LIBRARY

i^^^mwmiwii

5» Ooptrtmont q\ A^ricultwt

X

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the merits and economies of the splendid and inviting package
may obtain complete details promptly by addressing the
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right up to the time they are passed over the
counter to the customer.

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their favorite brand from a wooden box— and it's
good business to cater to the dealer and con-
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WHEN BUYING CIGARS

Remember thjf Regardlcu of Price

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WOODEN BOXES

THE TOBACCO WORLD

Vol 54

DECEMBER 15. 1934

S REPORTED olsewliere in this issue, the first
court decision regardiuo- the price-fixing
feature of the Tobacco ('ode, Judi>e Welsh,
T3U-I 1 ,^\^^^^ in the United States District ('ourt in
Phdadelphia, denied the petition of the Xevins Druff
Co and the Sun Ray Drug Co., asking for a temporary
restraining order prohibiting XRA from starting civil
or criminal proceedings against these companies for
cutting prices in violation of the Code until after the
conclusion of a test case against the Cigar (?ode. Com-
menting on the decision, S. S. Perrv, Executive Sec-
retary, National Code Authoritv for the Retail To-
bacco Trade, wrote :

Ct3 Ct3 ft]

HIS is the most important event that has hap-
pened in our trade since the Retail Tobacco
Code was approved. It is prettv clear evi-
dence that the courts of this couiltrv are not
going to permit a few ruthless, unethical dealers, out-
side the tobacco trade, to cause the ruin of hundreds
of thousands of small, honest merchants who are doing
more than their bit to help bring about national re-
covery. It is further indicative of what mav happen
to those few who attempt to defv the law's of this
country and the President of the Ignited States, who
had just their kind in mind when he said, in approving
the National Industrial Recovery Act, Tts good is the
assurance of a reasonable profit *to industrv^nd living-
wages for labor with the elimination of the piratical
methods and practices which have not onlv harassed
honest business but contributed to the ills of labor.'

**The dispatch with which this case was disposed
of, and the results ol)tained, certainlv should reassure
all dealers in the country that their code is going to
stick. If they will do 10 per cent, as much to support
the Code Authority as it is doing to i>rotect them, they
can go to bed nights confident that they are insured
against the pirates.**

C?3 Ct3 Ct]

AKING the proper aHowance foi- Mr. Perry's
enthusiasm, we can rejoice with him and with
the tremendous body of retail tobacco mer-
chants throughout the country that Judge
Welsh ruled for them against the plaint itTs. Michael
Francis Doyle, counsel for the companies, contended
that the NRA was unconstitutional, and that the To-
bacco Code '* deprives the deah'rs of the right to run
their business in their <»wn way." lie said, "We want
to uphold the hands of President l\oosevelt and sup-
port the Xati(mal recovery legislation, but tliere are
some evils in this code which have to be corrected
speedily either by courts or by (ingress, because
otherwise it will ruin our business."

The Government was represented by United States
Attorney Gerald A. (}k»eson and four iittornevs from

No. 24

W ashiiigton assigned especially to NRA cases. They
were Hammond E. (niaffetz, Siegfried Hartman,
Simmer lord and Robert C. Dow. Attorney Chaifetz
contended tor the Government that ''the methods of
the Cham drug companies constitute 'cut-throat com-
petition because of their underselling of their com-
petitors," and that the latter would be driven out of
business it the prices were not stabilized.

^ ^ ^

y^ nJTAM RABOFF, president of the Sun-Ray
L\« (^)iiipany, which operates six stores in Phila-
delphia, eight in upstate Pennsvlvania, and
three in New Jersey, and which sells more
han a million cigars montiily, was the first witness
lor the petitioners, and declared that his whole enter-
prise was ill danger because of the recovery reo-ula-
tions. He explained that all of his company's sfores
are occupied under leases which guarantee the landlord
a minimum monthly rental based upon a percentao-e
ot gross sales, and that since the Code went into effect
()ctober 29th last, the portion of the total income de-
rived from cigar sales had dropped from 34 per cent
to 2() per cent.

RabotT engaged in a debate with ChafTetz over the
question of whether ''underselling" affected the manu-
facturers' output and labor conditions, and hotly dis-
puted the attorney general's contention that '"low
prices" demoralized the business and labor markets
He cited an instance of buying 6,()UU,0()0 cigars in one
lot from a manufacturer who liad become overstocked
and his argument was that by taking this vast stock
ott the hands of the maker, he had opened the wav for
the manufacturer to j)ut his emplovees back to work on
new batches.

C?3 Ct] ct3

T MUST have amused the retailers present
when Counsellor Doyle pictured their suffer-
ings under the (V)de which deprived them of
the right to run their business in their own
way, wiieii, as a matter of fact, they were the ones
most vitally concerned in keeping in the Code the very
price-fixing regulations whicli the action before the
c()urt was intended to attack. And we wonder if any
of the (Jovernment counsel thought to point out to Mr.
Raboff the effect which his selling of six million cigars
of an overstocked maker would necessarily have on
the sales of six million other cigars sold at' the estab-
lished j)rice and the conse<iuent effect on the employes
of the manufacturers of those properlv-priced cigars
while the overstocked man was putting men to work
on new batches. We wonder, too, if anvone in the
courtroom adverted to the fact that, whfle the peti-
tioning companies bear the name of drug companies,
their business is essentially that of selling goods at
cut prices. They are "cut-price stores."

^mmm^^mmm^^^'^^^^^:3s^^

An ''Ears and Incomes" Air Report

rinXO tlio first four months it was on tlio air,
tlic furrc'iit i'lu'stt'rlii'ld ])roiirani with Andro
Ivostehinetz's Orchestra ami the noted opera
stars, Kosa PonseHe. (Jrete Stneeki>okl and
Nino ^fartini, reaelied an aetnal andienee of 12,4r)(),0(K)
radio lionies, or (with three listeners per home)
37,ol)8,(HH) listeners. Tiiis represents (i!) ])er cent, of all
the radio homes in tlie United States.

This was hrouuht to litiht hv "Kars and Tncomes/'
a marketini;' stndy just eom]>leted hy the noted research
consultant. Dr. Daniel Starch, and ])uhlished hy the
( 'olumhia Broadcast inu,- System. This study marks the
tirst time that a measurement has heen nuide of the
deuree of "total-nuirket ])enetration" l)v a sales mes-
sai*e — that is, the etfectiveness of the whole advertising
investment, not merely of a sinule broadcast or adver-
tisement. It measures the combined etfectiveness of
juoii'ram a]»|)eal, fretpiency of Ijroadcasts and duration
of cam])aiirn.

The "listeninu" data u\Hm \\liich the study is
based were gathered in seventy-seven cities from coast
to coast bv Dr. StarclTs inv<'>tiuators. Thev discov-
erod m<t what i)ro]M)rtion of the entire radio audience
of 18,500,000 homes the Chest ertield jirogram reached
durinii- its whole cvcle of broadcasts.

The results of this survev are not to bo confused
with those of "coincidental" tele])hone surveys made
on a given night while the ]»rogram is actually on the
air. Such surveys discover how many peo])le are really
listening to a single l)roatlcast of a given program. But

adding this week's audience to last week's audience to
next week's audience doesn't give an answer in terms
of total coverage — because a nund)er of each week's
listeners will be the same peoi)le.

The figure representing an average ** one-night"
audience nmy, however, be applied to the figure showing
"total-market penetration," in order to measure a
third factor — the amount of "re])etition" of the adver-
tising message, for instance, Dr. Starch found that
the total audience to the Chesterfield ])r()gram over a
}>eriod of four months was, in round mnnbers, .'^(),( )()(),-
(KK) listeners. A series of "coincidental" telephone
survevs conducted bv the Market Research Corporation
over a period of weeks showed that the average "one-
night" audience of the Chesterfield i>rogram was
8,(H)n,(H)() listeners. Figuring cui thi^ average nund)er
(d* listeners for forty-five broadcasts, a simple ])roces8
of arithmetic shows that the Chesterfield i)rogram, and
Chesterfield's advertising message, reached a total of
n(),()00,(H)0 listeners, an average of ten times each dur-
ing the four months it was on the air.

Thus "Ears and Incomes" j)rovides another yard-
stick for si)ecific advertising campaigns never before
otTered bv anv other advertising medium— the yard-
stick of "telling how many people how many times.'*
An advertiser can stand this up beside the actual dol-
lars and cents invested in his whole campaign and figure
out definitelv whether he has received his money's
worth.

^i^^ll^

A Tender Turkey

Big enough for all to have plenty on

CHRISTMAS DAY

and a

HAPPY NEW YEAR

each day of which will not seem long enough for
you to take care of your bigger business —

That is the sincere wish of

THE TOBACCO WORLD

The Tobacco World

Merchandising Provisions Uphield

Judge Walsh Denies Restraining Order to Two Chai

ns

S. ])ISTRI(T JUDGE GEORGE A. WELSH
on Tuesday, Decendjcr 4th, upheld the constitu-
tionahty of the National Industrial Recovery
Act and the validity of the Retail Tohacco
Lx)de. At tjie same time Jud^e Welsh denied i)etitions
li led in the U. S. District (V)urt for the Eastern District
o 1 ennsylvania hy the Sun-Ray Dru*,- Companv, oper-
ating- a lar^^e chain of cut-rate drug stores in Pennsyl-
vania and New Jersey, and the Nevins Dru^^ (^ompaiiy
ot l*hiladelphia, attackini-- the constitutionalitv of the
Recovery Act, the validity of the Tobacco (.^ode, and
re(iuesting restraining orders to i)revent the enforce-
ment f)f the (^igar Merchandising Plan of the (Vxle.

The decision of Judge Welsh, delivered from the
bench immediately at the conclusion of ])resentation of
evidence, is cpioted in full below:

"The bill was tiled November 2d, and it is now De-
cember 4th. This matter was of such ])aiamomit im-
portance* to all our })eo])le that when vou came in and
filed your bill I directed you to go to* the clerk of the
court and arrange for a si)eedy liearing. The several
continuances thjit were granted were granted for a
short j)eriod of time and because of personal matters
that arose in the lives of the attorneys in the case, and
those continuances were not in derogation of the rights
either of the (lovernment or of the i)laintitY.

**I have been much imjiressed with the Tnanner in
which the case has been ])resented to the Court. The
plaint itT stated on what he considered to be his rights
and under the advice of counsel that for the past two
weeks or so he has not been observing the Code, and
now the ( 'ourt is asked to decide whether or not, in view
of the testimony that has l)een ])resented, and which
clearly sets forth his status, a restraining order should
be granted against certain oiTicials of our Government.
**I would say that in order to warrant me in coming
to a conclusion to restrain the responsible officials of
our Government, I should have clearly presented to me
a set of facts which as a Chancellor should strike me as
being against good conscience and as in violation of the
fundamental law of the land. T am not convinced that
such a condition exists.

**I am not going to grant the restraining order at
this time because I do not think in e(piity, considering
the great public welfare, the purpose of this legislation
and the crisis that confronts this beloved nation of ours,
sitting here in the ccmrt of justice weighing the scales,
seeing that they are properly poised between organized
government on one side and the rights of the individual
citizens on the other, that 1 am warranted in so finding.

''Now, Mr. Dovle, 1 know how tender vou are of the
rights of individuals under our sovereign State. I
share with you (Hjually in reverence and resj)ect for
State authoritv, and if 1 were convineed that vour client
were doing business entirely of an intrastate nature T
might take a difTerent point of view in this case, but the
evidence* clearly establishes the fact, {ni<l I want this to
be distinctly understood, that he is doing an interstate
business, and as such, in my opinion, he is brought
within th(» law of the land under which the business is
now o|)erating, and T l)elieve tliat law can bt» exercised
by ('ongress within a sound discretion in the exercisf
of its constitutional rights.

December /j, njS4

This will not preclude you, if you so desire, from
presenting further evidence at a subsequent sta-e of
the proceedings Neither will the (luvernment bc'pre-
eluded, sliould the case require tlie presenting of fur-
ther ^evidence at a sul)se(pient stage of the proceedin^^

''I also feel that 1 must express nivself in this way •
Congress is about to meet. The (Jour't must take judi-
cial notice of the fact that an election was held on the
bth ot November, and that public opinion on many mat-
ters pertaining to this Code was registered. If this
subject of legislation is constitutional, as I believe it
IS, the pul)lic having registered its will; the public
through its proper organs having expressed approval
or disapi)roval of certain Ixodes or suggested modifica-
tions or exceptions of these Codes, (Vrngress in its wis-
dom will say whether or not this legislation known as
the National Recovery Act should be i^ermanent, and it
can put into effect the machinery, if it so desires, and
consider that it should be made permanent, to further
extend the necessary agencies to correct any hardships
that may have been imposed or worked upon small peo-
ple in the industrv.

''I think the President's own commission, of which
Mr. Darrow was one, l)y its findings indicated that in-
justice has been worked U])on certain small men in vari-
ous industries, and if I can gauge the President's hope
by what has been his jiast performances, I can imagine
that no one would be more anxious to have the Code
conform to justice and eeiuity for the little man than he.

*' Therefore, right on the eve of the meeting of
Congress just four or five weeks away, in view of the
testimony that has been presented here and my own sol-
emn responsibilities in the matter, visualizing, as I do,
this great count ly of ours, with millions of people,
striving to rehabilitate itself, striving to find a solution
for one of the greatest economic ])roblems ever pre-
sented to our |)eople, I cannot at this time grant a re-
straining order.

*'I want to thank the gentlemen on both sides of the
case for their very able presentation of the case before
me. ' '

Mb. Chaffktz: "Your Honor, before we adjourn I
want to sa>' that I know this has been a nerve-racking
case to you. You have sat all day and have been very
kind to us."

Thi: Coiijt: '*I think the case would warrant our
sitting all night, if necessary, to do justice to the parties
involved."

SAME DECISION IN N. J.

riKJK W ILLIAM CL.\RKof the T\S. District

Court for the DistiMcl of Ni'w Jeisey, on De-
cend)er lOth, denied the application of the (Jold
Drug Stores, Inc., for a restraining order to
restrain the National Code Authority for the Retail
Tobacco Trade from enforcing the Cigar Merchandis-
ing Provisions of the T(d)acco Code. This action is
similar to that taken a week ago l)y V . S. District Judge
Welsh in Pennsvlvania in the case> of Sun-Rav and
Nevins Druu- Com])anies.

MIA.

SANTA CLAUS AT BAYUK'S

REPARATIONS for the annual holiday fes-
tivitics at Bayuk hoadqiiartcrs were siuiialized
by the disbiirsoniont of tlie Suiisliiiie Club's
Christmas FuikI . . . This ori>:aiiization of
Bayuk employees distributed more than $ir)(),(M)0 to
members this year ... A sii])s1ai)tial fillinfj: for the
Christmas stoekinufs of these thrifty workers . . .
The display windows in the reception room on the
seventh floor have been dressed for the Ynletide season
by a real artist, the company's window decorator, and
by the time this is^ne is otT the press, the Christmas
tree will be standinu: where Miss Pocahontas pfreets
visitors . . . Kobert J. Fellows is roundins: out a
irratifyins: volume of business in his Bound Brook,
N. J., territory, and is pressinc: the factory for de-
livery of holiday orders . . . Down at Roanoke, Va.,
Barrow Penn Co. is maintaininji: a fast- strule on
Phillies and the other Bayuk brands . . . Keilson
Ciurar Co., Cincinnati, Ohio, is jrettinu: some biq: ship-
ments of Phill'es to take care of noinial and holiday
business in that district, where they distribute Bayuk
brands.

DAVE JENKS RECOVERING

HE hosts of friends of 1). A. Jenks, assistant
sales manasrer of O. II. P. Ciirar Co., will be
glad to learn that he is recovering from the
attack of grippe which confined him to his
home following his attendance at the Army-Xavy game
. . . lie had previously comj)leted a tour of the mid-
west in the interest of El Producto and La Azora,
returning to headquarters with a large number of
holiday orders for the brands . ... X. Rice Cigar Co.,
Pittsburgh, Pa., has taken over the Johnstown and
Altoona territory formerly held by Straus & (V)., and
have inaugurated an intensive campaign for the
further popularization of El Producto in that terrain.

With the decision rendered in the U. S. District
Court here last week, upholding the retail price pro-
visions of the Retail Cigar Dealers' Code, retailers
throughout the city have been greatlv encouraged and
are going after holiday cigar business in a big wav,
which is being reflected in increased sales all along the
line.

The Royalist Factory, Grabosky Bros., N. Second
Street, is being kept on their toes pushing production
to the utmost in order to meet the demand for this
popular brand at this season of the year.

Bon Lundey, (larcia y Vega representative for
this section of the country, has just returned from a
trip to parts of Lancaster County, where he obtained
seme nice orders for his brand. '

Abe Caro, Optimo ambassador, was a visitor at the
Optimo distributor's headquarters this week with that
contagious and famous smile, which denotes that Op-
timo continues to sell right up among the leaders in
this territory.

At Yahn & McDonnell headquarters, wo learn that
the recently introduced Blackstone Yankee retailing at
two for fifteen cents, is showing every indication of
being a ** winner". The consumer has given enthusi-
astic reception to this new size at this popular price.

Herman Abrams, Medalist representative, is back
in town after a most successful trip through Eastern
Pennsylvania, where he succeeded in exnandimr the
distribution and sale of this quality brand in a highly
gratifyinir manner. The Medalist brand in Philadel-
phia is also showing increased popularity.

At John Wagner & Sons. T. B. White, mana^rer of
the cigar department, reports that Don Sebastian
(product of Arango y Aranaro) is enjovin"' a snlendld
increase in demand, as well as their nvm Warner brand,
and that hf>lidav bn^^iness for 1934 shows every indi-
cation of imirnr ^vell ahead of the same ner'nri of ln<t
vear. Mr. AMiito also reports that their Monticello
brand is forgin^r steadily ahead, and that their im-
ported line of brands is showing increased activity
also.

The Tobacco World

December 15, tgj4

Production Adjustments Eflfective for 1935

ECRETAKY of Agricnlturo Homy A. AVallace
announced Deconiber lUtli that tiic production
adjustment contracts sii>ned earlv in 1934 bv
])roducers of Hurley, lire-cured and dark air-
cured tobacco will be etVective for 1935. The contracts
^srive the Secretary the })rivileue of extendin^i: them
into 1935, i)rovided the j)roducer is notified in writing-
prior to Decend)er 15, 1934. These notici's are now
beinsi" mailed. The notice of t)ie exercise of tlie i)rivi-
le^e of extending*' the contract sii»ned bv Burlev to-
bacco ju'oducers nuikes ai)plicable for 19.*>5 a reduction
of 40 per cent, from the base acreage and production
of all contract signers in lieu of the o})tional rales of
33 1-3 and 50 per cent, in effect this year. A reduc-
tion of 50 per cent, from the base could have been re-
quired under the terms of the contract.

The rental i)avment to Burlev contract signers will
be $20 an acre for each acre rented — the same rate as
in 1934. The lirst adjustment jmyment and second
adjustment payment (less the i)roducer's pro rata
share of the administrative expense of his local To-
bacco Production Control Associations) will be based
upon the net sale value of the 1935 tobacco crop of
individual contract signers. The adjustment i)ay-
nients will be at such rates, to be determined bv the
Secretary, as wdl tend to give producers the fair ex-
change value for that ]K)rtion of their 1935 production
which is e(pial to domestic consumption.

The contract for tire-cured producers calls for a
reduction in 1935 of 20 iier cent, from the base acreage
and production, as compared with the 25 per cent, re-
duction in etTect this year. Under the terms of the
contract, the 1935 reduction also could hav.e been as
much as 25 per cent, from the base. Hental payments
under the fire-cured contract will be at the rate of
$12 an acre for each rented acre, the same as in 1934.
The two adjustment payments (less administrative ex-
penses of the Tobacco Production Control Associa-
tions) will be based ujwn the net sale value of the 1935
crop of fire-cured tobacco grown l)y the individual
contract signers. The adjustment payments will be
at such rates, to be determined by the Secretary, as
will tend to give producers the fair exchange value for
that portion of their 1935 production which is equal to
domestic consumption.

Signers of dark air-cured contracts are called ui)on
to reduce their acreage and i)roduction by 20 per cent,
in 1935 as compared with the 3i) jxm- cent, reduction in

eiTect this year. A reduction of 30 i)er cent, could have
been required in 1935 under the dark air-cured con-
tracts. The rental payment under the dark air-cured
contracts will continue at $12 an acre for each acre
rented. The adjustment payments (less administrative
exi)enses of the Tobacco Production Control Associa-
tions) will be based upon the net sale value of the
1935 crop of individual signers of dark air-cured con-
tracts. These will be at such rates, to be determined
by the Secretary, as will tend to give i)roducers the
fair exchange value for that iwrtion of their 1935 pro-
duction which is e(iual to domestic consumi)tion.

If the amount of the 1935 Burley tobacco crop
grown for market under a contiact is for any reason
less than the initial production allotment a deficiency
])ayment of two cents for each ])ound that the amoun't
falls short of the initial production allotment will be
made at the time of the second adjustment payment.
Similar deficiency payments at the rate of one and
one-(piarter cents a ju)und will be made under the fire-
cured and dark air-cured contracts.

The adjustment and deficiency payments under
each contract are to be made after there'has been pre-
sented to the Secretary satisfactory proof that the
producer has fully i)erf()rmcd all of the terms and con-
ditions of the contract ami after ])roof has been given
of the net sale value of the 1935 crop. Proof of i)er-
fornumce and net sale value nuist be presented to the
Secretary prior to May 1, 1936.

The adjustment and deficiency payments are to be
paid to the producer unless the tobacco produced on
the farm under contract in 1935 is produced with the
aid of share-tenants or share-croppers, in which event
such i)ayments are to be paid to a person to be desig-
luited as trustee by the i)roducer and such share-
tenants and shaie-croj)pers on the farm who had an
interest in the tobacco under ooutract at the time of
marketing.

The trustee is required to distribute the adjust-
ment payments to those designating him trustee as
their interests may ai)pear, in the same proportion as
the net sale values of the respective shares of such
persons in the tobacco j)roduced for market in 1935
bear to the net sale value of the total amount of such
tobacco. The trustee shall distribute the deficiency
payment in such manner as may be specified in written
instructions signed l)y those designating the trustee at
the time he is named.

Wage Exemption for Two-fer Hand-Made

AKP^HS of two-for-a-nickel cii^ars bv hand mav
pay l)unch-makers and rollers at a s])ecified
minimum piece rate instead of the minimum
wage of 27 cents an hour specified in the Code
for the cigar manufacturing indnstry, under terms of
an order announced December 4th by tiie National In-
dustrial Recovery Board. The minimum piece rates
are $1.20 per thousand cigars for bunch-makers and $3
per thousand cigars for rollers. The stay will expire
Januarv 15, 1935.

Individual manufacturers have, in the past, com-
plained that the Code wage rate makes it impossible for
them to compete in the low-price field, especially with

8

imported cigars. The ( 'ode Authority lias made efTorts
to find a permanent solution of the problem, and has
proposed niodilieations to the Co<le c»n which hearings
liave been held. Additional time is required for further
study, however, and therefore the Code wage provision
was staved as to hand makers of two-for-five-cents

cigars

riiis exemption supersedes all individual exemp-
tions j)reviously granted to individual manufacturers.
The IV)ard specifies that any member of the industry
availing himself of the exemption must submit a certifi-
cate of compliance, and that in the event of non-com-
pliance the exemption will be immediately terminated.

The Tobacco World

J\ man and his wife
who had jmt returned from a
round- the -ivorld cruise spoke of
Chesterfield as "an international

cigarette.

c^}Hiet^

. . . that Chesterfield Cigarettes
are on sale in 86 countries ail
over the world.

It means something that
Chesterfields may be purchased
on nearly all ships and at almost
every port.

It means that for a cigarette
to enjoy such popularity, it must
have merit. We do our level best
to make Chesterfield as good a
cigarette as can be made.

Smokers say . . .
in almost every language

Above — Vacuum tin o( 50
— air tight — water tight —
fully protected even if sub-
tnerged in water.

Packages of 20 wrapped in
Du Pont No. 300 Cello-
phane—the best made.

® 1954. LiccETT & Myem Tobacco Co.

December 1$, 1QJ4

Sales Above Allotments Permitted

XOHK ail adiiiiiiistrativo ruling aiiiioiiiiced De-
oein))or Gth by the Agricultural Adjustment
Administration, growers ot* fire-cured and
dark air-cured tobacco who have signed iiro-
duction-adjustinent contracts are permitted to sell
tobacco in addition to their initial })roduction allot-
ments, in amounts not exceeding 15 ])er cent, of their
allotments, if they agree to a reduction in the rate of
the second adjustment payment. Unless sold under
this ruling, contract signers are reipiired to render
unmerchantable any tobacco produced in excess of their
production allotment.

The second adjustment payment under the contract
for fire-cured tobacco is at the rate of 7Mj Jier cent, of
the net sale value of the ]iroducer's VXU initial allot-
ment; while the second adjustment ]>ayment for dark
air-cured tobacco is at the rate of 10 ]>er cent, of the net
sale value of the ])roducer's IJKU initial allotment.

Contracting growers have been issued allotment
cards by county agents on the basis of the initial allot-
ment. However, field agents have been instructed to
issue tax-]>ayment warrants under the cards covering
a quantity of tobacco not exceeding 15 per cent, in
excess of the (luantity shown on the allotment card.

The administrative ruling will make it possible to
market certain export grades of fire-cured and dark
air-cured tobacco that might not be marketed if grow-
ers were reipiired to limit sales to their initial allot-
ments. Since ])roducers whose in;U ])ro(luction ex-
ceeded their allotments would probably hold their low-
est grades otT the market it is believed that a shortage
of some export grades might result.

The tobacco section of the Agricultural Adjust-
ment Administration points out that under the ruling
it will be profitable for a contracting grower to sell
as much as 11 per cent, in excess of his initial allot-
ment of fire-cured or dark air-cured tobacco so long
as he receives more than one-third as much, net, per
pound for the excess as he received for each pound of
the initial allotment. It will be profitable for him to
sell an additional 4 per cent., beyond the 11 per cent.,
if he receives more than one-half as much, net, for
each pound of the additional 4 per cent, as he received
for each pound of the initial allotment.

Allotments to contracting growers indicate that
they will sell not more than 95,()0(),()()() pounds of fire-
cured and not more than 22,500,000 pounds of dark
air-cured tobacco, including excess sold under the rul-
ing. These growers will receive non-transferable tax-
payment warrants which will, in etTect, exempt them
from payment of the sales tax under the Kerr-Smith
Tobacco Act.

Indications are that the sales of non-contracting
growers will not exceed 20,000,000 pounds of fire-cured
and 7,500,000 pounds of dark air-cured, of which it is
estimated that 5,000,000 pounds of fire-cured and
1,500,000 pounds of dark air-cured will be covered by
tax-payment warrants issued to non-contracting grow-
ers.

It is estimated that total sales of fire-cured will not
exceed 115,000,000 pounds and total sales of dark air-
cured will not exceed 30,000,000 pounds. The remain-
der of the 1934 crop of these types will be rendered
unmerchantable by growers who signed contracts and
whose production exceeded their allotments.

Processing Taxes and Rental Payments

ROCESSIXG tax collections under the Agricul-

tural Adjustment Act total $550,081,419 as of
November 1, 1934, Chester C. Davis, Adminis-
trator, announced today. Benefit payments
financed by taxes and paid to farmers to compensate
them for co-operation in making adjustments in their
production totaled $421,697,389 the' same date. The
Adjustment Administration made public tables show-
ing total processing tax collections by states from date
of levy up to and including October 31, 1934; receipts
from the different types of taxes by commodities, a
tabulation by states of tax refunds up to October 31st;
benefit payments by states, and a tabulation of the per-
centages of total national population and of national
income represented by each state, as a])i)roximate indi-
cators of the extent to which taxes are borne by the
various states. The tax collection figures are j)resented
as reported by the Bureau of Internal Revenue. Fol-
lowing are the figures for tobacco-:

Processinu: and related taxes collected (gross) to
October 31, 1934, bv states: Ala., $25,399; Ariz., $2458;
Ark., $16,358; Calif., $611,848; Colo., $12,113; Conn.,
$34,641; Del., $74,986; Fla„ $4^)8,191; Oa., $38,317;
Hawaii, $7975; Idaho, $3355; 111., $574,101; Ind., $137,-
927; Iowa, $35,010: Kan., $13,068; Kv., $2,372,877; La.,
$53,195; Me., $10,524; Md., including I). C, $103,431;
Mass., $87,571: Mich., $438,048; Minn., $46,895; Miss.,
$14,885; Mo., $8r)9,995: :\lont., $6198; Neb., $12,176;

Nev., $6893; X. H., $53,454; N. J., $1,120,359; X. Mex.,
$3191; X. Y., $5,921,804; X. Car., $7,628,548; X. Dak.,
$2105; Ohio, $1,558,278; Okla., $15,095; Ore., $10,155;
Penn., $1,579,564; K. I., $11,695; 8. Car., $.33,607; S.
Dak., $4226; Tenn., $667,105; Texas, $75,833; Utah,
$3343; Vt., $3816; Va., $2,530,379; Wash., including
Alaska, $18,244; W. Va., $334,130; Wis., $59,557 ; Wvo.,
$2391 ; total, $27,595,345.

Rental and benefit ])avments through October 31,
1934, bv States: Ala., $156(>;Ark., $180; Conn., $299,-
640; Fia., $243,269; (Ja., $1,470,243; 111., $267; Ind.,
$75,045; Kans., $3611; Kv., $2,705,329; Me., $38,288;
Mass., $117,355; Minn., $27,864; Mo., $54,632; X. H.,
$2594; X. Y. $26,820; X. (\, $5,590,367; Ohio, $488,225;
Penna., $548,038; Puerto R., $1,158,051; S. (\, $1,841,-
395; Tenn., $662,643; Vt., $2833; Va., $658,227; W. Va.,
$33,785; Wis., $522,373; total, $16,572,652.

JO

U. S. VOTES EXTRA DIVIDEND

Directors of the United States Tobacco Company
declared an extra dividend of $2.25 a share on the com-
pany's no-par conmion stock, the regular (juarterly of
$1.25 a share on the same issue, and the regular quar-
terly disbursement of $1.75 a share on the 7 per cent,
preferred stock.

All of the dividends are payable January 2d to
stock of record December 17th.

The Tobacco World

Cigars are the
most pleasurable
and economical
form of smoking.

BAYUK BULLETIN

VOTfTMF IT.

DECEMBER 15, 1934

PHULOFAX

(T/ie Retailer's Friend)

SAYS

Said M. R. B., a job-
ber, in his after-dinner-
over-cigars talk —
"Maybe it's my nature
but one of the most dis-
agreeable jobs is to let
out an employee but
what gets me is that
Fome employees seem to lack apprecia-
tion of their position imtil AFTER
they've lost it.
Ain't it so?

Here's another contribution from a
jobber: "Aside from a salesman's
(lualifications to sell, I'm guided some-
what by the ability of a salesman to
save something out of his salary, irre-
spective of how little that something
may be." Not a bad thought by any
means.

B. B. stands for a lot of things
l«ut back of a real salesman's name
it should stand for BUSINESS
HUILDER. __^j_

Cigars for Christmas! Cigars for
Christmas! CIGars for Christmas!
CIGArs for Christmas! CIGARs for
Christmas! CIGARS for Christmas.

9 days until Christmas . . . wt
haven't a day to lose to get all set anc
ready to go for the BIGGEST ani
BEST CIGAR CHRISTMAS IN
THE HISTORY OF CHRISTMAS

December 25 is Christmas as usual,
.md tnere s many a box ot cigars gom^
to be sold for this testive occasion . .
.homebody is going to sell 'em . . .
Might just as well be YOU!

A friend said to your humble col-
unmist: "Sav, Phil, can't you talk
ubout any other subject but Cigars?"
And Phil said: "Yes, but why should
I?"

"Are more cigars smoked on Sun-
days than on week days? More in the
summer time than in the winter time?
More on sun-shiny days than on rainy
days?" The answer as supplied to
Phil from most authentic source is
that "double-breasted coats are more
in fashion this year than last year."

Imagination is a great thing but —
when rendering a report to your su-
perior, let it indicate whether it is
based on imagination or facts and fig-
ures . . . the latter gives the Boss
a line on what he wants to know . . .
the former a line on the maker of the
report.

Can't help but report that for many
reasons this should be a banner Christ-
mas for cigars as gifts BUT we folks
on the selling end of it must do our
part. Cigars are the most economical
and pleasurable form of smoking!

(7^^'

WCOOOMMIIT

NUMBER 22

THERE IS A SANTA CLAUS!

D. B. I.

[ n^h BAVl'K aCARS INC., PhUa.

^tlffih »t'^'- of jimm cigar* time* 1897

The only people who don't
believe in Santa Glaus are the
quitters and the "it-can't-be-
done" boys. The "up-and-at-em"
chap knows there's a Santa
Glaus, because he's his own per-
sonal and private little old St.
Nick.

What will you be doing on De-
cember 26th, Mr. Dealer — and

you, Mr. Salesman? Nursing a
hangover — or counting up the
returns on the biggest Christ-
mas cigar box-sales of your
career?

What do you say if we devote
this issue of The Bulletin to
some suggestions on bigger and
better Christmas sales?

DONT BE AFRAID TO
BE A "COPY CAT"

The department stores have forgot-
ten more about the attractive and
compelling displav of goods, than most
of us will ever know. Why not get
around and see what the if are doing
to stimulate trade? Maybe you can
pick up some good ideas for your own
store. Remember Bill Shakespeare.
He never bothered to make up his
own stories. He took the other fel-
low's and improved on them.

DONT FORGET

THE LADIES

Women don't smoke cigars — j/€t.
But they certainly do buy a lot of
*em, especially around Christmas.

Every woman who comes into your
store for a pack of cigarettes or a
two-cent stamp is a perfectly good
prospect for a box (or maybe several
boxes) of cigars. Now is the time to
begin showing your feminine custo-
mers some of those boxes with the
fussy Christmas wrappers. If you
want to lay in some inexpensive but
attractive greeting cards to go on the
boxes, that won't do any harm either.

A CHRISTMAS LETTER
TO THE BOSS

How many business organizations
are there in your town, employing
half a dozen to half a thousand men?
Each one of these outfits is a swell
prospect for Christmas cigars.

Why not find out the name of the
big chief in each aggregation and
write him a letter suggesting that
there is no more graceful and accept-
able gift to his male employees than
a box of good cigars? Tell him some
of the brands you carry in special
holiday wrappers.

Then if you don't hear from him
promptly, follow up with a phone call
or a personal visit. Will it work?
Man, it has worked in numberless
instances.

HOW ABOUT THOSE
HOUDAY DISPLAYS?

Remember, folks are doing their
Christmas shopping earlier and earlier
— especially the womenfolk. The first
cigar merchant in the neighborhood to
get up his holiday window and counter
displays is the one most likely to skim
the cream of the business. Why not
be the early bird in your bailiwicK?

ONE DEALER DOES
IT THIS WAY

One progressive merchant we know,
prints up a lot of cards, about the size
of post cards. On one side is a list of
his leading cigar brands with prices.
On the other side is an order blank:

Please send to
(Name and Address)

(Brand and Quantity)

(Deliver on following date)

Enclose card with box with mj
name as the giver.

fba«fi«#«»p^«a

»*■«••«*•

(Signed) „....

He hands out these cards to
mers who come in, and encloses
every package that leaves his
It's a great system with those
who like to do their Christmas
easily and painlessly.

custo-
one in

store,
people
giving

WRITE THE FOLKS

How many of your customers do
you know by name, along with their
cigar preferences? Lots of 'em?
Good! Then why not, a nice friendly
letter to their wives along this line:

"I know Mr. Jones smokes Usmokem
cigars. We have Usmokems in attrac-
tive Christmas wrappers at such and
such a price. Wouldn't you like to sur-
prise him with a box for Christmas?
We will be glad to deliver them, etc.,
etc."

You get the idea.

SELL HIM A
**CHRISTMAS SELECTION''

I know each of my customers pretty
well (says a veteran salesman) and I
can come pretty close to estimating
how many Christmas cigars he can
sell. So, for each customer I work
out a Christmas selection — so many
boxes of this, so many of that, accord-
ing to his needs.

When I call on him I don't talk
hundreds or thousands, I talk about
a single unit that I have worked out
specially for him. I give him a chance
to say "yes" to a single unit rather
than a series of "nos" to a conglom-
eration of items.

If you don't think that a buyer un-
consciously likes to have somebody
help him make up his mind, you've
got another think coming. When you
go into a haberdasher's to buy a hat,
do you like the salesman who makes
helpful suggestions — or do you prefer
the one whose attitude says: "Go
ahead and do your own selecting. It's
your funeral, not mine"?

BAYUK BRANDS BUILD BUSINESS

Bayuk 'Phillies'

(UAYIK. PIllLAUELPHIA PERFECTO)

Havana Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

If You Want To Sell Christmas Cigars— Display Christmas Cigars

Burley Grow May Exceed Allotments 10^

FRLEY tobacco growers who have signed ad-
justniont contracts are permitted to sell to-
bacco in addition to their initial production
allotments in amounts not to exceed 10 i)er
cent, of their allotments, provided they agree to a re-
duction in the rate of the second adjustment payment,
J. B. Hutson, chief of the tobacco section of the* Agri-
cultural Adjustment Administration, announced today.
C'ontract signers are required to render unmerchant-
able any tobacco produced in excess of their production
allotment unless it is sold under this administrative
ruling.

The allotment cards issued by the offices of Countv
Agents have been issued on the basis of the initial
production allotments. However, field agents have
been instructed to issue tax-payment warrants under
these cards covering a quantity of tobacco not exceed-
ing 10 per cent, in excess of the quantity shown on the
allotment cards.

The reductions in the rates of the adjustment pav-
ment are such that before it will be profitable for'a
contracting grower to sell 6 per cent, in excess of his
allotment, he must receive approximately half as much,
net per pound, for each pound of the excess as he re-
ceived for each i)ound of the original allotment. In
order for it to lie ])rofitable for him to sell an additional
4 per cent., bringing his sales to a total of 10 per cent,
above his allotment, it will be necessary for him to re-
ceive more than three-fourths as much'for each pound
of this excess as he received for each pound of the

origmal allotment. In effect, this means that relatively
few growers will find it advantageous to plan to sell
tobacco in excess of their allotments.

The administrative ruling will facilitate the mar-
keting of the crop, since it is difficult for many growers
to determine exactly the weight of the tobacco at the
time it IS taken from the farm to the market. Growers
with production greatly in excess of their allotments
who have tobacco which is of good qualitv may find it
advantageous to exceed their allotments by as niuch as
6 per cent., and some cases as much as 10* per cent.

A tabulation of the allotments to contracting
growers indicates that they will sell not exceeding 200
million pounds of Burley during the current marketing
season. These growers will receive non-transferable
tax-payment warrants which will, in effect, exempt
them from the payment of the tax under the Kerr-
Smith Tobacco Act.

Present indications are that the sales of non-con-
tracting growers will not exceed 50 million pounds, of
which it is estimated that 10 million pounds will be
covered by tax-pa^nnent warrants issued to non-con-
tracting growers.

Total sales of all Burley growers are not expected
to exceed 250 million pounds. The remainder, which
will be rendered unmerchantable, will consist chiefly
of the lower grades of the crops of growers who signed
contracts and whose production exceeds their allot-
ments. World consumption of Burlev is estimated at
approximately 290 million pounds for'the current mar-
keting year.

Prices for Burley 40% Higher

URLEY tobacco prices on the opening of the
market were about 40 per cent, higher than
the season's average for similar grades of the
1933 crop, according to the Bureau of Agri-
cultural Economics, U. S. Department of Agriculture.
The bureau's specialist in tobacco grading in the Bur-
ley district reports on the following grades : Lugs, C2F
opened at an average of $28.80 per cwt., compared with
a season average during the last market of $23; C3F,
$25.30 comi)ared with $19.50 last vear; Flvings, X3L,

tv^'on T.'&^'i^;';^^^ *^^-'^' ^^^ ^-2.80 compared with
^^o^i^^^.'o^**^ *^^'-^^ compared with $12.30; Leaf grades,
B3I<, $21 compared with $14.70; B4F $10.60 compared

S^^i'm^ J -•?!!' '^^P^» ^-^^^T *^-2^^ compared with $4:
B5FT $j.90 compared with $2.70.

The sales reported were at Lexington, Kentucky
Beginning Wednesday, December 5, grading service
will be inaugurated at Knoxville, Tenn., at which mar-
ket the warehousemen have taken steps to provide the
service without cost to the growers.

Kerr-Smith Referendum Extended

The Agricultural Adjustment Administration has
announced that votes on continuation of the Kerr-
Smith Tobacco Act will be received as late as Decem-
ber 20. Previously, December 15 had been fixed as
the final date on which votes would be received. The
five-day extension was made in order to allow more
time for distribution of ballots and to make certain
that all eligible persons have sufficient time in which
to vote. The exact date for opening the referendum
in each county is being specified by the county agent.

/*'

Ballots for voting are now en route to county agents'
offices.

Persons who own, rent, share-crop or control land
customarily engaged in the production of fiue-cured,
Burley, fire-cured and dark air-cured tobacco are elig-
ible to vote. Persons who own, rent, share-crop or
control three-fourths of the land for each type of to-
bacco must favor continuance of the Kerr-Smith To-
bacco Act in order for it to be made effective for that
type during the 1935 season.

The Tobacco World

UNION

r^E ■ ■ . evEHVOHJi

SIR WALTER

RALEIGH

TARGET

CIGARETTE
TOBACCO

DIAL

Gr^

Wings

lOO, BURLEY

UPKIShi DOMESTIC
iCARfTTE TOBACCO

BROWN & WILLIAMSON

Brown fli Williamson products are designed to bring
you the most profit in all lines and prices. Are you get-
ting your share of profit from these live selling items :
Kool, the largest -selling 15-cent mentholated cigarette;

TOBACCO CORPORATION, LOUISVILLE, KENT

U C K Y

Raleigh, now selling at the price of ordinary cigarettes;
Wings, the popular quality 10-cent cigarette; Sir
Walter Raleigh Smoking Tobacco, IS cents and famous
for its mildness; Target, a genuine blended cigarette

tobacco for 10 cents: Dial Smoking Tobacco, •
smoother blend of Burleys for a dime; Bugler, a blended
cigarette tobacco for a nickel; and Golden Grain, the
big 5-cent bag of roll your own.

December 15, jgs4

'$

Secretary Reports on Tobacco

^r^TI^^^^^^^^^^^^^^"^'^ l)roi>ross was made during
II • , I the year in adjusting the supply of the vari-

^ ous kinds of tobacco to the demand and in
imin-oving the income of tobacco growers.
Api)roximately :275,()()0 growers in the Ignited States
and l(),r)UO in Puerto Kico entered into adjustment con-
tracts in IIKU, under wliich production was reduced
about 30 per cent. The United States crop of ap]irox-
iniately 1,0()(),0U0,()U0 imunds in 1934 is about as much
below the level of world consumi)tion of this tobacco
as the 1933 crop was above that level.

Six marketing agreements were negotiated for the
principal kinds of tobacco grown in the United States.
Under these agreements domestic buyers agreed to
pay higher prices for their purchases* from the 1933
crop on the basis of reductions to be made in the 1934
crop. The quantity of tobacco ])ui-chased under these
agreements aggregated ()33,000,lHi() j)ounds, which was
nearly half the total production in 1933. It is esti-
mated that the tobacco program increased the market
receipts from the 1933 crop by approximately $50,()0(),-
000 above what they would otherwise have been. In

addition i(;28,0OO,()OO was i)aid to tobacco growers in
the form of rental and benefit payments.

Altogether growers received*approximately $207,-
0()0,0()0 from tobacco during the current nuirketinp*
year, compared with $107,000,000 during the preceding
marketing year. This total income is close to what
tobacco growers received for their 1930 crop, and is
only slightly below the average for the last ten vears.
Prices of tobacco in Puerto Rico increased about 40
per cent, after the adjustment program was started.

At the beginning of the marketing vear for the
1933 crop there was in the Ignited States a surplus of
900,000,000 i^ounds of all types of tobacco above the
carry-over which would be considered normal for the
rate of consumption then prevailing. The production-
adjustment ])rograms were undertaken to relieve the
market of this surplus. Extreme differences in the
conditions of production, market outlets, and prices,
and the highly specialized nature of the problems in-
volved, necessitated separate contracts for eleven dif-
ferent kinds of tobacco.

From the lU3i Report of the Secret ar if of Agri-
culture, released December iji»

Resolution on Harry Buckley's Death

UK FOLLOTVTXO resolution was adoi)ted by
the Cigar Container Code Authoritv at its

•

meeting on December 7, 1934, on the death of
Harry W. Buckley, former ])resident of the
Auto-kraft Box Corjmration, ])residfnt of the National
Cigar Box Manufacturers Association, and member of
the Cigar Container Code Authority, ^fr. Buckley died
on November 8th as the result of an automobile acci-
dent.

To the chairman, and the meml)ers of the Cigar
Container Code Authoritv, the deatli of their esteemed
fellow member, Harrv William P)ucklev, comes as a
deep sorrow.

He was a member of the Code Autlioritr from the
time of its inception, and had been a mem!)er of the
committee which drafted and ]>rej)ared the Code. His
interest in the industry, and his ripe business judg-
ment were highly valued.

At a time in the historv of the count rv when there

• »

was a particular demand that self should be sub-

ordinated to the interests of the common good, Harry
Buckley, by his advice and by the strength of the or-
ganization which he rei)resented, stood in the prepara-
tion of the Code and its subsequent execution for that
which was-for the good of the industry at large, rather
than for indivi<Iual aggrandizement.

His easy good humor and unfailing courtesy made
him a delightful companion upon all occasions, and be-
loved by every man in the industry. A man of singular
charm and appeal to his many friends, he lived a life
of great usefulness and of fine i)urpose, and to them
his i)lace cannot be filled. There are sopie lines of the
immortal dramatist often quoted on occasions like this,
sometimes perfunctorily, and frequently with little
aj'tness, but we can surelv sav of our departed friend
that

ti

His life was gentle, and the elements

So mixed in him that nature might stand up
And say to all the world, Mhis was a man.' *'

Growers' Demonstrate Value Agreements

URIXG the 1933-34 marketing season, x'veu
marketing agreements were in elfect for to-
bacco. Of these, ii%'e applied to the so-called
Southern types of tobacco, which constitute
more than 85 i)er cent, of the total production in the
United States. Those marketing agreements were de-
signed to secure higher jjrices for the 1933 crops by
capitalizing on the action of growers in agreeing to re-
duce acreage in 1934. It is estimated that the launch-
ing of the adjustment program, together w-ith the oper-
ation of the marketing agreements, resulted in an in-

14

crease of approximately 50 million dollars, or around
35 ]>er cent, above the previous year, in the amount
H'ccivcd by tobacco farmers for the 1933 crop. Only
one of the seven tobacco agreements has been contin-
ued in (»fTect, but there is little doubt that the agree-
ments demonstrated their value to tobacco growers in
the last year. — FVoni an address by H. II. Tolley, As-
sistant Administrator, Agricultural Adjustment Ad-
ministration, before the American Farm Bureau Fed-
eration, at Nashville, Tenn., December 11th.

The Tobacco World

AMERICAN TOBACCO AT BREMEN

EW transactions in American tobacco in the
Bremen market were few during October,
1934, due to the restrictions on the importa-
+• n t^on,^f. tobacco, which for the present is prac-
tically a prohibition As reported by American Consul
vy. A. Leonard, and made public by the Tobacco Divi-
sion, Department of Commerce, the comparatively
large arrivals constituted consignments to Bremen im-
porters for sale to other European countries or to be
held in free port warehouses pending the entry of this
tobacco into Germany. ^

The market for Bright Virginia during October
continued to be quiet. Local importers state that there
were practically no sales to German manufacturers,
it is stated that prices have reached such a hijrh level
that even offers in German marks were rejected bv the
manufacturers. Some quantities are reported to havo
been sold to manufacturers in other European coun-
tries, but it IS stated that those manufacturers consider
prices prohibitive, and that if the present price lev^l
was maintained they would be compelled to look for
substitutes. It is stated that although the dollar is
devaluated only 40 per cent., the prices for Bright Vir-
ginia tobacco show an increase of more than 100 p^r
cent. ^^

There were no transactions in Dark Virginia be-
tween importers and German manufacturers during
the month. Local importers state that some small
quantities were disposed of to other European coun-
tries. The market for Dark Kentucky continued quiet.
Reports indicate that the large German manufacturers
have enough tobacco on hand to enable them to disre-
gard the next two crops. Local importers report that
the Tobacco Research Institute at Forchheim is carry-
ing out experiments with a view of cultivating and
growing Dark Kentucky grades in Germany.
^ The market for Burley, Maryland, and Ohio con-
tinued quiet. Local importers report that the ship-
ments of Maryland during October constituted deliver-
ies on sales to other European countries. One Sucker
and Green River continued quiet durins: the month. It
is stated that no transactions occurred in these grades.
Seedleaf transactions were restricted to available local
stocks, of which fifty cases are reported to have been
sold. Activity in American tobacco stems showed an
increase when compared with the immediate preceding
month of September 1934.

The local trade expects the present prohibition of
imports to continue until the recentlv established To-
bacco Control Board has completed its investigations
of stocks on hand in Germanv. After obtaining an in-
ventory, the requirements of the German tobacco in-
dustry will be taken into consideration relative thereto.
Normally, there is a good demand for American to-
bacco, but the future prospects of actual sales will
depend on local conditions and the restrictive measures
token bv the Board. The restrictions, as previously
reported, are justified by the lack of foreign exchange
wnth which to pay American exporters. Imports of
American tobacco at the free port of Bremen, Germany,
'u incr the nu^nth of October, 1934, totaled 970 hogs-
' oad« of loaf and 385 metric tons of stems, compared
^^•'^h October. 1933, imports of 1170 hogsheads of leaf
■^d 177 metric tons of stems. October, 1934, leaf im-
ports consisted of Kentucky-Tennessee 545, Virginia
350, Maryland 74, and Burley 1.

December is, T934

VRVmB. MARKET FOR AMERICAN TOBACCO

HE feature of the British tobacco market in
October was the huge expansion in imnorts of
ui'niMniifaetnred tobacco fi-ni Iho ' T'nitP(i
states, tlio quantity rising to 42,450(100
pounds compared with 17,780,000 poinds in the samo
month last year. Considerable inquiry was experT-^

mtle tob'Lc''' """P ^'""^^.'^ 'y'"^ in England, but'^^ery
little tobacco was available.

Nnfft'L^'^nf "f ^''a^^'^ ^^""^^^^ *^^^^^^ ^^Vovi by Alfred
I^ut ing. Clerk, American Consulate General, London,
total imports amounted to 28,529 hogsheads during Oc-

IfZoT''"'^^^^^ hogsheads a year ago, and compHsed
-.7,d4J Virginia Leaf (contrasted with 2003) • 3176 Vir
gmia strips (298) ; and 10 Western leaf ^49) Last
vear there ^yere also 395 hogsheads of Western strips
For the period January to October 1934. imports rose
\^ loQQ h^f«heads, compared with 73,056 hogsheads

eaf (1660), 1055 Western strips (2299), and 15 Mary-
land, etc. (nd). ^

Deliveries during October reached 9165 hogsheads
ramely, 7499 Vir.-inia leaf, 1267 Vir^nia strips, 1 4^
Western leaf, 210 Western strips, and 2 Maryland, etc. ;
m the same month of 1933. deliveries totaled 8624
hogsheads, consisting of 7003 Virginia leaf 1127 Vir-
gmia strips, 250 Western leaf, 244 Western strips, and
no Maryland, e^c. Deliveries in the ten montln
amounted to 96.722 hogsheads and consisted of 79 7<)7

1 /oiL^-;^^'^^''^^'^ Virginia strips, 2144 Westen,
leat, 2166 Western strips, and 22 Maryland, etc.

TO DEFER TAX LEGISLATION

0 TAX legislation will be asked of Congress un
til Administration officials have a definite indi
cation of the amount which will be required fof
relief and recovery purposes during the next
year. The annual budget now being prepared is ex
pected to go to Congress at the opening of the session
m January with many blanks in items relating to the
recovery program. The actual amounts to be asked
for these purposes will be submitted later, as surveys
develop the needs of the New Deal agencies.

It is considered probable in Washington that any
new tax legislation which the administration desires
will not come up in Congress until after the session is
well under way.

Estimates of the total which will be needed by the
Governnient for relief purposes during the coming'year
vary widely, but are conservatively placed at some-
thing more than a billion dollars.

BIG GREEK SALE TO AMERICAN COMPANY

A total of 35,520 bales of Greek manipulated leaf
tobacco of crops prior to 1933 were sold to an American
company in September. The transaction involved
383,055 pounds of Xanthi tobacco and 786,253 pounds
of Ca valla tobacco. The deal was handled through
the Sal nika Tobacco Sales Conmiission, a new qua-ii
governmen%'il body responsible for disposing of surplus
stocks. The sale re(piired the a])])roval of the Minis-
terial Council, which was given on October 9th and
published in the Official Gazette for October 10, 1934. —
American Commercial Attache K, L. Rankin.

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.iiiii.i-Mfci^,uA;:

News From Congress

fm 'AND

Federal
Departments

F-f'i''ii

OXTIXUATIOX of Governnient fixing of
hours and wai>es may bring about a demand
from numufaoturors that the Government also
determine the "lair return" upon its invest-
ment to which an industry is entitkuL

Tlie steadily increasing demands of labor, if sup-
ported by the Administration, it is declared bv busi-
ness executives, will imj^ose an unbearable burden
upon industry, particularly if the Administration goes
through with its plan for the stabilization of employ-
ment by providing an annual, rather than an hourlv
wage. "^

Labor, on the other hand, has charged the indus-
trialists with attempting to set up a snioke screen bv
depleting their resources through dividend i)avments
and transfers of earnings to inoperative funds, such as
depreciation and depletion accounts, and then claim-
ing code reipiirements are resi)onsible for their ** pov-
erty ' \

As a solution of the rrifficulty, it has been proposed
that the Government should determine the fair return
for various industries, as it does for public utilities,
and thereon predicate the wages to be paid workers.
Unless action of some such nature is taken, it has been
hinted, many manufacturers, weary of liirhtinir the
handicaps imposed by de|)rcssion, labor and the XRA,
will seriously consider closing their plants and thereby
nullifying the gains in employment which have thus
tar been made.

CS3 C?3 C?3

ETAIL sales for 1934 are expected to reach
a total of some $28,000,U(K ),()()(), a gain of
$.3,(X)U,UOO,000 over last year's $2."3,U37,225,000.
as a result of advances in general business

disclosed by reports now reaching the Department of

Commerce.

The forecast of a heavy gain in retail business
was made by Assistant Secretary of ( ommerce John
Dickinson upon publication of the 1933 figures by the
United States Census Bureau. The Imreau's reimrt
showed a total of l,52r,,119 retail establishments
throughout the country in 1933, emplovini? an average
of 2,703,325 full-time and 730,327 pait-'time emplovees
with a total payroll of $2,910,445,000.

As comi,ared with 1929, retail sales showed a dol-
lar decline of 49 per cent., but officials of the bureau
refused to attempt any estimate as to how much of
this was due to lower prices as compared with actual
loss of volume. In il.o food industry, it was pointed
out, the price decline was nearlv as great as the de-
cline m dollar sales, indicating that there was little, if

j6

■■■M ^^^ *^^H>N6T0N Bureau 62ZALKi Builpwg

any, change in actual volume, but no similar informa-
tion IS available tor other branches of trade.

Such data as have been secured, however, it was
said, indicate that the loss in volume was much less
han would be suggested by the drop in total value in
those lines classed as necessities, although in the lux-
ury class It was admitted the loss was probably very

CS3 C?3 [t3

LLEGIXG unfair competition in the sale of

pipes, the Federal Trade Commission on De-

ctMiiber 11 issued a complaint against the

Briarwood Corporation, Cleveland, charjrinff

misrepresentation in advertising.

The commission alleges that the company's ad-
vertising tended to mislead pii)e smokers into'believ-
ing that when they purchased its pii)es thev were buy-
ing genuine briar-root products made from'the natural
root when m fact they were purchasing a fabricated
product made from briar-root dust with a vegetable
binder. °

The commission has allowed until January 11 for
the respondent to show cause why an order should not
be issued to cH?ase and desist from the practice alleged.

C?3 Ct3 CtJ

THOROUGH investigation of the activities of
agents of the Internal Revenue Bureau has
been ordered by the Secretary of the Treas-
41 . n "^-^^ '^loi-^^enthau as a result o*f the disclosure
that Government employees had approached business
men with offers to ''fix'^ tax controversies.

While officials of the bureau claim that the case
reported to them was but an isolated instance, experts
are going over a number of closed cases with a view to
jletermining whether any widespread irregularitios
have been practiced.

If the investigation discloses that there has been
^^racketeering'' on the part of Federal agents, it is
promised, criminal j)rosecutions will be brought.

It is believed that the agents involved in^the case
now before the Treasury had merely secure<l advance
information that accounts were to be settled in favor
of taxpayers before they approached them with offers,
for a fee, to "fix" the cases.

However, if the study of any closed cases reveals
that fraud was practiced, they will be reopened, a step
which the Treasury is authorized to take regardless
of any statute of limitations.

The Tobacco World

PROCESSING TAX FACTORS

By Howard S. Cullman
T WAS and has been my understanding that the
processing tax was adoi)ted on cigar leaf types
of tobacco due to the ditferential in the price the
American farmer received for his product and
a fair average return over a given number of years, as
estimated by the Agricultural Department. The Amer-
ican farmer is dependent on the law of supply and de-
mand, the same as any other merchant or dealer in any
commodity. If surplus stocks have been substantially
reduced in cigar leaf tobacco growing States, it would
seem to me quite reasonable to anticipate that there
will be a diminishing and limited surplus of distress
tobacco affecting general market conditions.

In certain States, notably Connecticut, where sup-
ply and demand has to a certain extent ecpialized itself,
you will note that jirices paid by the American farmer
at ])resent probably are above'the index tigures of a
fair average return which was used as a guide bv the
Agricultural Department. In certain other States,
notably Wisconsin, where tiiere are still large surplus
sui)plies on hand (which tobacco, however, is not fit for
cigar manufacturing purposes, but suitable for scrap-
chewing i)urposes), prices are still depressed to the
American farmer. In other words, it would seem to me
that no intelligent prou:ram can be adoi)ted regardiug
the reduction or the elimination of the processing tax
without having the factors as to the farmer's return
on his labors, as well as the available stocks whicli
vitally atTect him, guide you in such decision as you
deem j)roi)er and ai)propriate.

With the possible exception of the State of Wis-
consin, from reliable information, I am convinced that
surplus stocks are a])proximately normal and in many
instances below normal. This is due to a slight increase
in ciiiar consum]>tion, as well as to the i)r(/y:ram of the
Agricultural Adjustment Administration that has vi-
tally decreased acreage and ib the j)rimary agency
which must get full credit for restoring the balance of
supply and demand to this i)resent situation.

FUTURE OF CODES

RISING tide of criticism of industrial codes
may make difficult the enactment by Congress
of legislation perpetuating the National Re-
covery Administration.
The first anniversaries of many of the codes, now
being reached, have been marked by bitter complaint
from industrialists that restrictive provisions have
nullified any good which might have come out of the
regimentation of industry.

Few business executives have been found satisfied
and the congratulatory statements which have been
made as to the effect of the codes have come from code
authority officials and NRA men, both of which groups
have a definite interest in protecting their jobs.

The rising tide of critics, together with a decision
of the United States Supreme Court, probably to be
rendered next month, on the first case involving codes
to come before it — revolving around the oil code — may
have a material effect on the future of the NRA.
Questions by the justices during the Supreme Court
hearing developed that Executive Orders and code
regulations have been developed in an extremely cas-
ual manner and that in many instances no provision
was made for hearing the side of persons accused of
violations.

December is, 1934

P. LORILLARD COMPANY, Inc.

119 West 40th Street • New York City

Is offering an unusually attractive line of Christmas Wrapped
Packages this year . . . packages that will help you sell Merchand.se

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

^^^

WILLIAM T. REED. Richmond. Va i \ V ctpr« den!

HARVEY L. HIRST. Philadelphia. Pa ! .' " V ce-K« S

ASA LEMLEIN. New York. NY. Trel.™

CHARLES DUSHKIND. New York. N. Y Counsel and' Managing DTrecIor

Headquarters, 341 Madison Ave.. New York City

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York. N Y President

CLIFFORD N. DAWS<JN. Butlalo. N. Y .ExecufiV/vice.Pres deni

JAMES C. THOMPSON. Chicago, III .:.... .T ... .TrM,ureJ

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS

JOHN H. DUYS. N-cw York City President

MILTON RANCK, Lancaster. Pa First Vice-President

I). EMIL KLEIN. New York City Second Vice-President

LEE SAMUELS. New York City Secretary -Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

ABE BROWN. 180 Grumman Ave.. Newark, N. J President

ALBERT FREEMAN. New York. N. Y Fi«i" vici^pJestdeUt

IRVEN M. MOSS. Trenton. N. J Second Vice-President

A. STER.N'HERG. Newark. N. J ^ . .. . .SecritJry

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA

MORRIS LEVITONE President

SAMUEL MAGID. 2U01 N. Mervine St.. Philadelphia. Pa. /^'^'.'.'.'.'.'.'.'.'.'.SecTcUTy

THE NATIONAL ASSOCIATIONS OF TOBACCO
DISTRIBUTORS, INC.

r. ASBURY DAVIS, Baltimore. Md President

lOSEPH KOLODNY. 200 Fifth Ave., New York. N. Y '!. .../....'.Secretary

GEO. B. SCRAMBUNG, Cleveland, Ohio Treasurer

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION

JOHN F. BROWN President

HERMAN H. YAFFE, 301 Fox Building. Philadelphia, P» Secretary

17

Establithed 1886

"BEST OF THE BEST"

'*"'""-"' '' A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Ktg West, Florida

OUK HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco ai«ISow and amooth la charact«»
and Impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTUN. AIOMATIZEB. BOX PLAVOtS. PASTE SWEETENBIS

FRIES £i BRO., 92 Reade Street, New York

?At/,'lvty,",vtA''Atyjykty.';.v»y::.Vi!/:Lv.t;;A»^u'«

Col

umn

The ratf foi this column is three cents (3c.) a word, with
. ninimum charge ot seventy-hve cents (75c ) payable
^trictiy in advance

"MA \\.\l rt,^it-./ JtTi nt/\ttt/ nw/'

POSITION WANTED

CIGAR SALESMAN COVERING EASTERN PENNSYLVA-
NIA and Local Territory desires connection. Large following.
Address Box No. 580. "The Tobacco World."

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON
Automatic Machines, wants a position. Also instructs beginners.
Address Box No. 558, "The Tobacco World."

CIGARS WANTED

I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS
Specializing in cigars to cater to restaurants and cafe trade.
Would like to specialize in 5 and 10 cent cigars under my own brand.
Manufacturers communicate with me in reference to worth-while line
Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y.

FOR RENT

30.000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A
3-story and concreted basement building adjacent to P. R. R.
freight station in York. Pa. Building of sufficient strength to accom-
modate at least 50 cigar-making machines per floor. Sec A. Kauff-
man & Bro., York, Pa., for inspection and details.

HAVANA CIGARS

BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT
LOVE— Adopt as your slogan. "Kiss your beer, but love your ci-
gars." Specially those Havana blended. "Good to the last PuflF,"
manufactured by A. Ramirez & Co.. Post Office Box 1168, Tampi^
Fla. Write them for particulars today.

Tobacco Merchants' Association
Registration Bureau, S;:V''yo'rT a^'

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.OO

Dnplicate Oertifirate, 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 reportinc of more

Jt'n *7./r *'*.'.*!; **"* '"• **•" ^''"^yo" <2»). " .dditional char,, of On.
^ lar $1.00) w. I be made. If it necessitates the reporting of more than twenty

«U n ^ ? '^^ »»'«rty.one (31). an additional char,, of Two Dollar.
(52.00) will be made and so an additional char,, of One Dollar ($!.(») will b«
mad. for .very ten (10) additional titles necessarily reported

REGISTRATIONS

^ Vrr!.°x"^^^^Jerber Ir.w'f """• """-"■ ^°- '-- N-
"-t. Hfctrf iVlt'-'"- '°' ^""'- ^"'°" So"-. Astoria.

TRANSFERRED
CUBAN CREST:— 31,434 (U. S. Tobacco Journal). For ciears ciea-

V.^^'t V '■•l'' ^- x; Jh'-o^gh mesne transfers acquired by
Nalco. Inc.. New \ ork. X. Y.. and re-transferred to Garcia Grande
Cigars. Inc.. New York. N. Y., November 27, 1934

BROGAN HEADS Y. & McD.

Paul Brogan has been elected president of Yahn &
McDonnell, succeeding M. J. McDonnell, who resigned
to return to business under his own name, as reported
in the last issue of The Tobacco World. Mr. Brogan
has long been recognized as one of the leaders in the
industry in this territory, and his election as the active
iiead ot the company means a continuance of the mod-
ern merchandising and promotional methods which
have created the enviable reputation enjoyed by the
house of Yahn & McDonnell in the Philadelphia dis-
\^^u' ,^"^^**^^ personnel change was the election of
J. H. Matchett as a member of the board of directors
in Mr. McDonnell's vacated place.

, , Briggs smoking tobacco (P. Lorillard Co.) is en-
joying a most enviable demand in this city at this time.
The brand is distributed through Yahn & McDonnell,
an(l they report sales far in excess of the 1933 period
m both the popular 16 oz. wooden keg and the 8 oz. tin.

Send Two Dollars, with the coupon below to The
Tobacco World. 236 Chestnut St., Phila., Pa., and
get your copy twice a month for a year.

Name.

Street No.
P. O

.State

CIGAR BOXES

T.l. Algonqoio « t*^?

H!t^^^co

Establlihed 1879

**«%a?

ClOMMWC

•S7-64I CAST 1711 ST.

MKIV VOtMC

CONSOLIDATED

LITHOGRAPHING CORPORATION

Mate Oftn. GRAND STRtCT Ct MORGAN AVENUE. MlOOKLrN. R T.
I* votci. r III iMio^

BiTmaCM BANDS ■^f77-/^ffCIGAR LABELS

WINDOW TRANSPARENCIES

automatic

machines ofTer

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

It Pays to Advertise

IN THE

TOBACCO WORLD

Orders Iiiquiries

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Polic^Referencb BO(Hll

*nd Mafliag List Catalog

Gives counts and prices on
over, 8.000 different lines of
business. No matter what
your business, in this book
your prospective customers
listed.

Valuable information is also
given as to how you can use
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and inquiries for your prod-
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Write for Your FREE Copy

R. L. POLK & CO.,
Detroit, Mich.

Largest City Directory Pub-

ing List Compilers— Busi-

lishers in the \VorId— Mail-

ness Statistics— Producers

of Direct Mail Advertising.

The Staadards of America

"•"/.uir: SNUFF

Est. 1760
Est 1825
Est. 1851

ALL OF THE OLD ORIGINAL

Maccoboys — Rappees — Hifih Toasts
Stroaii, Salt, Sweet aod Plain Scotches

Maaafactarad by

GEORGE W. HELME CO.

Ill Fifth AvvBHC. N«w Yark

FOR CENTURIES it has been possible to
choose a fine Vintage %vine without guess-
work. Every bottle of such wine bears its date— >
a mark that pledges its quality.

And now every 5^ cigar smoker can select a
mild, mellow Vintage cigar by this same method.
Because every box of White Owl Cigars carries a
Vintage mark.

The Vintage mark is our pledge— and your as-
surance—that Vintage White Owls contain none
but the finest of American filler tobaccos. Only
when nature particularly favors the crops— when
leaf of Vintage quality is grown — is the tobacco
considered suitable for White Owl.

We go one step further. Even in Vintage years
we classify all filler tobaccos into seven grades.
And only tobacco of the quality of the top three
grades passes White Owl's strict Grade A filler
requirements. No other filler tobacco is ever
used in White Owls.

ThaVs what we mean by the Grade A Vintage
mark on the White Owl box. That's why you can
be sure of a quality cigar where you see thm
Vintage mark. YouHl always find a mild, mellow
smoke in the Vintage White Owl box. Try a Fin-
tage cigar today.

Co©r.. 19^4. Geoeral Cigar Co.. Inc.

Vintage V^hite Owl Advertising is Now Appearing in Leading Newspapers Tlircingli*Hil the Cloiintry