Title: The Tobacco world, v. 61

Place of Publication: Philadelphia, Pa.

Copyright Date: 1941

Master Negative Storage Number: IVINS# PSt SNPaAg190.2

Volume 61

1941

JANLfARy*^''

A

ESTABLISHED
1881

MILLIONS SPENT
FOR CIGAR SMOKE

Factory expenditures by cigar manu-
facturers, covering- cost of materials,
revenue stamps, supplies, fuel, pur-
chased electric energy and contract
work, amounted to $79,249,087 in 1939,
according to a preliminary Bureau of
the Census report on this industry, com-
piled from Census of Manufactures data.

Besides these expenditures, the cigar
plants paid out $5,075,463 in salaries to
salaried employees and $34,179,556 in
wages to wage-earners.

The cigars made in cigar factories
were valued at $159,092,560, and those
made in other plants at $810,442.

Gjpyright 1941, LiccrTT & Mvfrs Tobacco Co.

HoBART B. Han KINS — Editor

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

JANUARY, 1941

No. 1

HAT of tlie New Year? asks Joseph Kolodny,
spark plug' of the National Association of
Tobacco Distributors, and his answer to his
own question lias been appropriately chosen to
lead off these" editorial paragraphs in this first month
of 1941. When the outlook for the future is rosy and
radiant, he says, the task of the prophet is not espe-
cially difficult. But when the future is clouded with un-
certainty and the signs on the horizon are indistinct, it
is presumptuous and almost impertinent for anyone to
essay an unqualified prediction concerning what is to
come. 1941 presents a huge question mark. So many
forces beyond our control are at work that none of us,
unless we are endowed with occult power, can properly
assume the role of a soothsayer.

- -_- E feel fairly confident that business volume
\fm ^'^^^ increase during the coming year. It is
rather plainly indicated by the continued up-
surge of general business during the last half
of 1940 and by the important gains reflected in largely
increased holiday buying. The vast, almost fabulous,
sums to be expended in carrying out the program of
national defense and the attendant increase in employ.-
ment and wages unquestionably will result in a higher
expenditure per capita in 1941. Counterpoised against
the anticipated general business expansion are a num-
ber of unknown quantities which every American busi-
ness man must explain as best he can. How will the
war proceed? Will this nation be directly involved in
the conflict and put on a war footing? Will Britain
and her allies be able to gain the upper hand? If a
period of inflation should ensue in this country, how can
we best adjust our businesses to the changed economic
conditions? How far will the Government go in the di-
rection of increased taxes? What precautions must be
taken against over-expansion in the event of a sharp
decline in production and consumption following the
completion of the defense program?

HESE and a multitude of other questions are
coursing through the mind of every business
■I man who is trying to fatliom the future. As
to the wholesale division of the tobacco in-
dustry, it is my opinion that we can be fairlv sure of
an increased volume of business in 1941. This is not,
per^ se, an indication that the distributors will neces-
sarily be more i)rosperous. The difficulty in the whole-
sale tobacco trade is not to obtain more volume, but to
make a fair and reasonable profit on existent volume,
ilns can be accomplished only in two ways: first, bv
miprovmg tlie efficiency of the wholesaler's operation,
and, second, by reducing, insofar as possible, cut-
tliroat competitive practices which force the average

distributor to do from 70 per cent, to 80 per cent, of his
volume at a loss. The National Association of To-
bacco Distributors is coping with these problems with
the most effective means at its disposal. We made en-
couraging progress in 194U, and I am confident that we
w411 be able to proceed even farther and more rapidly
along these lines in 1941. Above all, I think the Amer-
ican business man in 1941 should make his considera-
tion of profit secondary to the welfare of his country.
By contrast with the rest of the world, we are living in
a paradise. We should not begrudge the sacrifices nec-
essary to preserve our Government, our economy, our
traditions, and our way of life.

T is a pleasure to report that the numerous
committees and boards appointed to have
charge of the wide range of activities at the
ninth annual meeting of the NATD, January
5 to 18, in the Palmer House, Chicago, are laboring in-
tensively to complete the details of the program. The
four days' sessions will embrace five separate general
divisions. They are, first, the general business ses-
sions, to be held on each of the four days ; second, the
sessions to be held in conjunction with the model to-
bacco distributing house, also daily; third, the round-
table conferences, to be held on Friday and Saturday,
January 17 and 18; fourth, the young executives' divi-
sion meeting, also on Friday and Saturdav, and, fifth,
the daily activities of the NATD Club for Women. The
arrangements for the business sessions, the model dis-
tributing house program and the round-table confer-
ences are in charge of the convention executive com-
mittee, headed by Joseph Kolodny, as executive
director, with Allen C. Davis and Henry J. Pinney as
general co-chairmen.

mfjrj F are in the midst of the holiday merry-mak-
l\« i".^' ^s these lines are written, and June seems
a long way off, yet we are happy to note that
the National Council for the Promotion of
Father's Day, to be held this year on June 15, are al-
ready at work. Tlie official 1941 poster, painted by
McClelland Barclay, portrays the theme of American-
ism and was dedicated to a great American, General
John J. Pershing, in commemoration of his 80th birth-
day, and to the American Legion. It reads, '* Salute
Dad the American Way, Father's Day, June 15." A
total of 181 manufacturers and retailers in 21 lines
subscribed to the 1940 fund for the promotion of Fath-
er's Day. They included 34 department stores, 22
neckwear manufacturers, 22 shirt manufacturers, 21
men's furnishings retailers, 16 sporting goods houses,
and so on. Two tobacco manufacturers stood four-
teenth in the numerical list.

Secm«y^^Officr?^^r^u ^T' '^f '^ '' Published by Tobacco World Corporation; Hobart B. Ilankins. President and Treasurer; B. S. Phillips. Vice- President- John Clearv
15 cen^a cop^y 'forli^n "^iTw'"":' ^^'I'^'t'^' ^^ ^""^ -^^'^ Subscriptions, available only to those engaged in the tobacco 'industry Ttr^d:.* i 00 a y^l .'
py. tore.gn. $1.75 a year. Entered as second-class mail matter. December 22, 1909. at the Post Office. Philadelphia. Pa., under the Act of March 3. 1879.

Cigarettes and Snuff Decline in Nov,

AH Other Classes of Tobacco Products
Registered Increases; Cigars, 0.45^;
Chewing and Smoking Tobaccos, 15*47^

OR the first time since March, 1940, there was

a decline in the withdrawals of cigarettes for

consumption in November, according to the

Supplement to the Tobacco Barometer of the

Tobacco Merchants Association of the United States.

With the exception of snuff, all other classifications of

tobacco products registered increases.

All classes of cigars in the U. S. totaled 507,348,-
580, as compared with 505,098,447, a rise of 2,250,133,
or 0.45 per cent. Philippine Islands withdrawals
totaled 20,017,390, as compared with 20,641,673, a drop
of 624,283, or 3.02 per cent. Puerto Rico withdrawals
totaled 271,550, as compared with 194,300, a gain of
77,250, or 39.76 per cent. Grand total was 527,637,520,
as compared with 525,934,420, an increase of 1,703,100,
or 0.32 per cent.

Class A cigars in the U. S. totaled 435,760,000, as
compared with 429,849,745, a gain of 5,910,255, or 1.37
per cent. A P. I. loss of 625,060 (3.04 per cent.) and a
P. R. loss of 33,300 reduced the class gain to 5,251,895,
or 1.17 per cent.

Class B cigars in the U. S. totaled 4,578,550, as
compared with 4,844,143, a decline of 265,593, or 5.48
per cent. A P. I. gain of 5963 and a P. R. gain of 31,000
reduced the class decline to 228,630, or 4.7 per cent.

Product November, 1940

Cigars :

Class A —

United States 435,760,000 +

Philippine Islands . . . 19,926,250 —

Puerto Rico 91,850 —

Total ~ 455,778,100 +

Class B —

United States 4,578,550 —

Philippine Islands ... 11,170 +

Puerto Rico 50,000 +

Total "; 4,639,720 —

Class C —

United States 60,913,588 —

Phihppine Islands . . . 68,910 —

Puerto Rico 129,700 +

Total 61,112,198 —

Class D —

United States 5,294,077 —

Philippine Islands . . . 8,240 +

Puerto Rico

Total 5,302,317 —

Class E —

United States 802,365 —

Fhihppine Islands ... 2 820 4-

Puerto Rico ...'...

Total ~, 805,185 —

4

Increase or Decrease
Quantity Per Cent.

5.910,255

625,060

33,300

1.37
3.04

5,251,895

1.17

265,593

5,963

31,000

5.48

• • • •

• • • •

228,630

4.70

3,308,382
11,486
80,250

5.15

• • • •

• • • •

3,239,618

5.03

44,427

3,530

700

0.83

• • • «

• • • •

41,597

0.78

41,720
2,770

4.94

• • • •

38,950

4.61

Class C cigars in the U. S. totaled 60,913,588, as
compared with 64,221,970, a drop of 3,308,382, or 5.15
per cent. As a result of a P. I. loss of 11,486 and a
P. R. gain of 80,250, the class decline was reduced to
3,239,618, or 5.03 per cent.

Class D cigars in the U. S. totaled 5,294,077, as
compared with 5,338,504, a loss of 44,427, or 0.83 per
cent. P. I. withdrawals gained 3530 and P. R. with-
drawals declined 700, making the net loss 41,597, or
0.78 per cent.

Class E cigars in the U. S. totaled 802,365, as com-
pared with 844,085, a move in the wrong direction of
41,270, or 4.94 per cent. A P. R. gain of 2770 reduced
the class loss to 38,950, or 4.61 per cent.

Little cigars totaled 14,551,307, as compared with
12,528,507, an increase of 2,022,800, or 16.15 per cent.

Cigarettes in the U. S. totaled 14,347,327,020, as
compared with 14,461,358,957, a decline of 114,031,937,
or 0.79 per cent.

Large cigarettes totaled 237,715, as compared with
219,750, a gain of 17,965, or 8.18 per cent.

Snuff declined 377,383 pounds, or 11.64 per cent.;
chewing and smoking tobacco gained 2.14 per cent.
Following are the comparative figures :

Product November, 1940

Total All Classes:

United States 507,348,580 +

Philippine Islands ... 20,017,390 —

Puerto Rico 271,550 +

Grand Total "^ 527,637,520 +

Little Cigars:

United States 14,551,307 -f-

Philippine Islands ...

Puerto Rico '

Total 14,551,307 -f

Cigarettes:

United States 14,347,327,020 —

Philippine Islands . . . 27,720 +

Puerto Rico 300,120 +

Total 14,347,654,860 —

Large Cigarettes:

United States 237,715 +

Philippine Islands ... '

Puerto Rico Ys^qoO —

Total ~, 252,715 +

Snuff (lbs.): ■

All United States ... 2,865,513 —

Tobacco (Chewing and
Smoking) lbs.:

United States 25,730,910 +

Philippine Islands ... 10 +

Total ~ 25,730.920 +

Increase or Decrease
Quantity Per Cent

2,250,133

624,283

77,250

0.45

3.02

39.76

1,703,100

0.32

2,022,800

16.15

• • • •

• • • •

2,022,800

16.15

114,031,937

25,720

184,120

0.79

• • • •

• • • •

113,822,097

0.79

17,965
' 5,666

8.18
25.66

12,965

5.41

377,383

11.64

538,107
9

2.14

538,116 2.14

The Tobacco World

Cigars Maintain Slight Gain for 1940

Up a Little More Than One-half of
One Per Cent in U. S, Withdrawals in
First Eleven Months of the Year

IGARS, cigarettes, cliewing and smoking to-
bacco continued to run slightly ahead in with-
drawals for the first 11 months of 1940, as
compared with the corresponding period of
1QOO ^pnr^r^(^^r^^Y to +hp Siipnlpmont to the Tobacco
Barometer of the Tobacco Merchants Association ot
the United States. Cigars were up a little more than
one-half of 1 per cent., cigarettes 4.5 per cent., chewing
and smoking tobacco 0.4 per cent. Little cigars were
down 16.71 per cent., large cigarettes 33.95 per cent,
and snuff 1.23 per cent.

All classes of cigars in the U. S. totaled 5,005,628,-
739, as compared with 4,980,190,258, an increase of
25,438,481, or 5.35 per cent. Philippine Islands with-
drawals totaled 199,286,378, as compared with 189,165,-
637, a gain of 10,120,741, or 5.35 per cent. Puerto
Rico withdrawals totaled 1,319,550, as compared with
1,470,640, a drop of 151,090, or 10.27 per cent. Grand
total was 5,206,234,667, as compared with 5,170,826,535,
a gain of 35,408,132, or 0.68 per cent.

Class A cigars in the U. S. totaled 4,472,494,615, as
compared with 4,454,366,120, an increase of 18,128,495,
or 0.41 per cent. P. I. gained 9,995,655, or 5.31 per
cent., and P. R. lost 294,390, for a net gain of 27,829,-

Ist 11 Mos.

Product CaL Yr. 1940

Cigars :

Class A —

United States 4,472,494,615 +

Philippine Islands ... 198,409,965 +

Puerto Rico 710,450 —

Total 4,671,615,030 +

Class B —

United States 38,200,198 —

Philippine Islands ... 129,159 +

Puerto Rico 214,150 +

Total ~ 38,543,507 —

Class C —

United States 456,794,368 +

Philippine Islands . . . 302,218 —

Puerto Rico 394,950 +

Total 457,491,536 +

Class D —

United States 34,442,975 +

Philippine Islands . . . 77,431

Puerto Rico

Total 34,520,406 +

Class E—

United States 3,696,583 —

1 hihppine Islands . . . 367,605 +

Puerto Rico

Total ~ 4.064,188 —

January, ig4i

Increase or Decrease
Quantity Per Cent.

18,128,495

9,995,655

294,390

0.41
5.31

• • • •

27,829,760

0.63

375,327
37,965
17,250

0.97

• • • •

• • • •

320,112

0.82

7,144,080

38,402

128,250

1.59

• • • ■

• • • •

7,233,928

1.61

951,194

194,280

2,200

2.84

• • • •

• • • •

754,714

2.24

409,961
319,803

9.98

■ « • •

90,158

2.17

760, or 0.60 per cent.

Class B cigars in the U. S. totaled 38,200,198, as
compared with 38,575,525, a loss of 375,327, or 0.97 per
cent. A P. I. gain of 37,965 and a P. R. gain of 17,250
reduced this decline to 320,112, or 0.82 per cent.

Class C cigars in the U. S. totaled 456,794,368, as
compared with 449,650,288, a gain of 7,144,080, or 1.59
per cent. As a result of a P. I. drop of 38,402 and a
P. R. rise of 128,250, the class gain was increased to
7,233,928, or 1.61 per cent.

Class D cigars in the U. S. totaled 34,442,975, as
compared with 33,491,781, a gain of 951,194, or 2.84
per cent. This was reduced to 754,714, or 2.24 per cent,
by a P. I. loss of 194,280 and a P. R. loss of 2200.

Class E cigars in the U. S. totaled 3,696,583, as
compared with 4,106,544, a decline of 409,961, or 9.98
per cent. A P. I. gain of 319,803 reduced the class loss
to 90,158, or 2.17 per cent.

Cigarettes totaled 166,848,184,886, as compared
with 159,663,737,244, an increase of 7,184,447,642, or
4.5 per cent.

Little cigars declined 24,985,792, large cigarettes
839,211, snuff 432,832, tobacco 1,132,053.

Following are the comparative figures :

1st 11 Mos.

Product CaL Yr. 1940

Total All Classes:

United States 5,005,628,739 -f

Philippine Islands . . . 199,286,378 +

Puerto Rico 1,319,550 —

Grand Total 5,206,234,667 -f

Little Cigars:

United States 124,537,942 —

Philippine Islands ...

Puerto Rico

Total ' 124,537,942 —

Cigarettes:

United States 166,848,184,886 -f

Phihppine Islands ... 287,490 —

Puerto Rico 3,011,500 —

Total 166,851,483,876 +

Large Cigarettes:

United States 1,490,425 —

Philippine Islands ... 3,755 -f

Puerto Rico 163,600 —

Total ~. 1,657,780 —

Snuff (lbs.):

All United States ... 34,616,086 —

Tobacco (Chewing and
Smoking) lbs.:

United States 282,821,059 4-

Philippine Islands ... 57

Total 282,821,116 +

Increase or Decrease
Quantity Per Cent.

25,438,481

10,120,741

151,090

0.51

5.35

10.27

35,408,132

0.68

24,985,792

16.71

■ • • •
• • • •

24,985,792

16.71

7,184,447,642

925,077

1,661,130

4.50

• • • •

• • • •

7,181,861,435

4.50

839,211

3,634

16,700

36.02

• • • •

9.26

852,277

33.95

432,832

1.23

1,132,053
508

0.40

• • • •

1.131,545

0.40
S

4

Move to Discourage Runaway Prices

N appeal to all business men to unite in efforts
to continue to prevent any trend towards run-
away prices was made by the board of direc-
tors of the Chamber of Commerce at its De-
cember meeting. Current price curves, the board
pointed out, establish the fact that in the carrying out
of the national defense program business, through self-
regulation, thus far has kept prices in check.

The statement by the board said :

** Violent price fluctuations cause strains and dis-
locations in the country ^s economic processes and re-
sult in hardships for business, labor and consumers.
Thus, the long-term interests of everyone in prices are
identical. In connection with the defense efforts of the
government, business men have firmly and consistently
declared their intention to do everything within their
power to prevent price increases that may not be justi-
fied.

** Recent price behavior is clear evidence that
through the use of self -regulatory measures, producers
and distributors have been successful in their efforts
to prevent unwarranted price increases.

** Prices are frequently subject, however, to forces
over which management has no control, either indi-
vidually or collectively. The public should not assume,
therefore, that prices will necessarily remain where
they are. Some prices will probably rise and others
may decline as a result of changes affecting costs of
production and distribution, and because of constant
changes in supply and demand.

**As a federation of 1600 commercial, trade and
industrial organizations, located in every state, the
Chamber urged all business men, whether or not they
are affiliated with such organizations, to join in these
endeavors to guard against unwarranted price- in-
creases.''

The board had before it a report by its Committee
on Distribution, presented by Benjamin H. Namm, of
Brooklyn. Dealing with discriminatory restrictions on
retailing, this report said of prices :

'* There should be a common bond of interest in
scrutinizing all legislative proposals which may oper-
ate to increase prices, or which in any manner may
stand in the way of improving efficiency or service to
the public."

^ This report surveyed the situation respecting re-
strictive legislation aimed at retailing and said :

** Retailers as a group, regardless of their competi-
tive attitudes in their own fields of merchandising, may
properly resist proposals which in any way discriiii-
inate against them, whether such discrimination takes
the form of special taxes on all retailing or on any of
its forms, or results in restrictive regulations which
would bear unfairly on them. Indeed, intelligent self-
mterest and the obligations of retailers to the public,
would seem to dictate the necessity for a solidarity of
action on such matters on the part of all retailers.

*'Not only retailers but producers and tlie public
likewise have a clear interest in assuring to all classes
of retailers an opportunity to perform their legitimate
functions unhampared by special forms of taxes and
unburdened by legislative and administrative restric-
tions of an unreasonable character.

^ ** Control and regulation of business through ex-
ercise of the taxing power is a device which has been

used extensively by governments. In some instances
taxes have been levied for the ostensible purpose of
equalizing competition but in reality for the purpose
of eliminating or definitely curtailing the business done
by certain forms of business enterprise.

^^ Chain stores have been singled out for discrimin-
atory purposes, but this form of retailing is not the
only subject of legislative action of this kind by states
and municipalities.

*^ Leased departments in department stores have
been designated as separate stores, subject to taxation
as such.

*^ Taxes have been imposed on the distribution
warehouses of chain store companies.

** There have been ordinances taxing every truck
unloading merchandise within a city limit; and one
placing a tax upon every vehicle distributing, in a city,
bread baked outside the city limits.

*^ Taxes have been proposed on special lines of
merchandise in specified price classes.

'^ Taxes have been levied on a graduated scale on
the sales of all classes of merchants, and on their in-
ventories.

^^Examination of proposals which have been in-
troduced in great numbers before state legislatures in
more recent years discloses a continuation of efforts
to place special tax burdens upon various forms of re-
tailing.

^'Proposals have been advanced to limit the num-
ber of stores that might be operated by one individual
or corporation, and to require substantial proof that
an additional store is needed in a neighborhood before
allowing one to be opened.

''From the nature of these proposals it is apparent
there is scarcely a form of retailing which has not at
one time or another been the subject of discriminatory
and restrictive legislation. The trend toward placing
more of such measures on the statute books continues.
Whatever may be the premises upon which advocacy
of such proposals are based, it is apparent that retail-
ers as a group have a duty, if only in their self-interest,
to scrutinize not only the measures now before legisla-
tive bodies and those which may be proposed, but also
the measures which are already on the statute books.
Such examination is particularly pertinent in view of
the public interest in the business of retailing. ' '

Expect Capacity Crowds at Convention

Varied Program Arranged by N ATD Committees to Benefit all in Trade

GERMAN REICH BANS TRADE

On the occasion of the incorporation of the Protec-
torate (Bohemia and Moravia) into the customs terri-
tory of the German Reich, the Reich Minister of Com-
merce, by a decree effective October 1, 1940, and valid
tor an indefinite period, prohibited the trade in tobacco
products between the Reich and the Protectorate, ac-
^oln"^^ ^o the Deutscher Reichsanzeiger, October 3,

The prohibition of the trade in tobacco products
was found to be necessary, it is reported, because of
certain tax alleviations in the Protectorate that would
^•lye the products manufactured in that district a com-
petitive advantage over tliose produced in the Reich.
At the same time, the tobacco industry of the Protec-
torate will be given the opportunity to change over
trom a monopoly to a private business concern.

The Tobacco World

S tJie result of a check-up to ascertain the
probable number who will attend the ninth
X. A. T. D. convention at the Palmer House,
Chicago, January 15th to 18th, it was stated at
the association's New York headquarters this week
that indications point to a record attendance which
may possibly be double the number of those at the 1940
convention last Januniy. In n special bulletin to dis-
tributors and manufacturers, the association has made
an urgent request that all who plan to go to Chicago
for the convention arrange tlieir scliedule so as to ar-
rive in time for the official opening at noon, Wednes-
day, January 15th.

*'Our program, both business and entertainment,
is so elaborate and embraces so many important fea-
tures," stated Joseph Kolodny, executive secretary,
*'that we will be obliged to adhere strictly to a time
schedule if the program is to be carried out in its en-
tirety. At previous conventions it has been our custom
to start the actual business of the meeting on Thurs-
day, but at our next conclave it is necessary for us to
advance the beginning of the business sessions to
Wednesday. The demonstration of the model tobacco
distributing house and special sessions attendant there-
to make our program more comprehensive than ever be-
fore and makes the extra time essential. We are, there-
fore, making this special request that everyone reach
Chicago in time to register and be ready for the open-
ing gong of the convention at noon Wednesday."

The holding of a series of round-table conferences
on a variety of vital subjects, problems and issues con-
fronting both distributors and manufacturers, is a per-
manent feature of these annual conventions and the
1941 convention will be no exception. Twelve round-
table conferences have been arranged, six of which will
be held on Friday morning, January 17th, and six on
Saturday morning, January 18th. A record number
of conferees will participate in each discussion. The
conclusions arrived at by those who participate in the
proceedings of each conference will be incorporated in
reports submitted by the various chairmen to the gen-
eral convention on Saturday afternoon.

The topics chosen for the 1941 round-table confer-
ences are as follows :

1. Can legislation restricting unfair competitive
practices alone assure the survival of the distributor?

2. What gross profit is required for the efficient
marketing of the fastest selling, nationally advertised
brands as compared with the profit on cigars and
sundry items?

3. While retaining the exclusive distribution of
certain brands of cigars, pipes, candy, etc., a substan-
tial number of distributors rely on subjobbers to ob-
tain and maintain distribution of such brands espe-
cially m thinly populated areas. Is a distributor
justified m enjoying the sole distribution of a product
wnen his sales personnel is inadequate to cover all the
potential outlets in his territory?

PArno* "^^^ ^^^^^% ^^ ^^^ ^^^^^ business greatly con-
cerns every distributor. What can the distributor do
m hi^s respective territory to increase cigar consmnp-

5. Owing to lack of aggressive leadership, in many

January, ig^j

territories, local or state associations have not reached
their desired effectiveness. What can be done to build
leadership in local associations?

6. Granted that manufacturers' missionary effort
is indispensable to the furtherances of the consumer's
acceptance of a product, is it more productive for the
missionary man to accompany the distributor's sales-
men or to work independently?

7. In some localities, wholesale tobacco distribu-
tors are currently operating on a five-day per week
basis. Is a general application of the five-day week
desirable for tobacco distributors?

8. Economic conditions have impelled the whole-
saler and retailer to diversify their business by adding
a substantial number of sundries. Although some dis-
tributors are successful sundry merchandisers, by and
large, tobacco w^holesalers have not acquired the tech-
nique to sell sundries in a substantial volume. What
can be done to stimulate more interest and to improve
the merchandising of sundries by the distributors?

9. The very existence of the service distributor de-
pends upon the efficient distribution and promotion of
the manufacturers' products, and one of the major
functions of the N. A. T. D. is to improve these mer-
chandising standards. From the manufacturers' stand-
point, in wiiat specific ways can the distributor im-
prove his methods?

10. While a considerable number of legitimate
wholesale service distributors have branched out into
the field of mechanical merchandising, a substantial
number of others still regard vending machines as an
undesirable and unimportant factor in wholesale dis-
tribution. Should the vending machine be an integral
part of the operations of the wholesale distributor?

11. The practice of consigning merchandise and
returning goods has developed to such an extent that
it has become a pronounced evil in the industry. What
can be done to rectify this condition?

12. Under the present practice, when the manufac-
turer assigns the exclusive distribution of his products
to a distributor, it is generally based on a gentleman's
agreement. Would it not be more equitable and fair
to both parties to render such agreements in the form
of legal contracts?

Following are the committees in charge :
Executive Director: Joseph Kolodny; General Co-
Chairmen : Allan C. Davis, F. A. Davis & Sons, Balti-
more, Md., and Henry J. Pinney, H. E. Shaw Company,
Worcester Mass. ; Treasurer : J. Renz Edwards, F. S.
Edwards Tob. Co., Kansas City, Kan.; Honorary
Chairmen: Edward Grauer, Metropolitan Tob. Co.,
New York, N. Y., Joseph P. Manning, J. P. Manning
Co., Boston, Mass., and Fred AY. Winter, Winter Cigar
Company, Denver, Colo.; Vice-Chairmen : Lloyd K.
Black, Goldsmit Black, Inc., Pittsburgh, Pa., Paul
Brogan, Yahn and McDonnell Cigars, Philadelphia,
Pa., R. O. Downie, The Samelson Company, Memphis,
Tenn., Nelson Eberbach, A. B. Cunningham Co., Phila-
delphia, Pa., Louis Ehrlich, Rothenberg and Schloss
Kansas City, Mo.; Directors' Convention Board: Chas'
F. Becker, Chas. F. Becker Cigar Co., Detroit Mich.,
R. D. Burnett, II, R. D. Burnett Cigar Co., Birming-
ham, Ala., David Gross, C. J. Donovan-Havas Corp
Buffalo, N. Y., Samuel N. Grossman, Chicago Tob Co

Chicago, 111., Henry Gunst, Cliff Weil Cigar Co., Rich-
mond, Va., Eniil Harms, Peter Hauptmann Tob. Co.,
St. Louis, Mo., E. W. Harris, Hamilton, Harris & Co.,
Indianapolis, Ind., Claude Harrison, Ouachita Cigar
and Tob. Co., Monroe, La., Clarence D. Hunter, J. P.
Manning Co., Boston, Mass., C. B. Leidersdorf, Lewis-
Leidersdorf Co, Milwaukee, Wis., Alvin Linker, Linker
Cigar Co., Louisville, Ky., Sylvian Mirsky, B. Mirsky
& Son, San Francisco, Cal., Jesse D. Newman, Louis
S. Cohen Co., Butte, Mont., Moses Packer, Packer
Brosther, New York, N. Y., A. F. Schultz, Arthur F.
Schultz Co., Erie, Pa., Alex Schwartz, Keilson Cigar
Co., Cincinnati, Ohio, Jonathon Vipond, Scranton Tob.
Co., Scranton, Pa.

The Convention Board of the Young Executives'
Division of the N. A. T. D. is made up of :

Charles Dearstyne, Dearstyne Bros. Tob. Co.,
Schnectady, N. Y. ; David Vipond, Scranton Tob. Co.,
Scranton, Pa.; Morton Annis, Gradiaz, Annis & Co.,
Tampa, Fla. ; A. G. Baer, I. Goldberg & Co., Coates-
ville. Pa.; L. H. Cantor, L. H. Cantor Co., New York,
N. Y.; Herman Cassel, S. Cassel Co., Chicago, Illinois;
Robert H. Dunn, America's Own Match Co., New York,
N. Y. ; David Fine, Flaks, Inc., Denver, Colo. ; S. Frank,
Fleming Hall Co., New York, N. Y. ; Urban J. Gutjahr,
The Henry Straus Co., Cincinnati, Ohio; George J.
Henn, Philip Morris & Co., New York, N. Y. ; I^rantz
Johnson, R. D. Burnett Cigar Co., Birmingham, Ala. ;
Charles T. Jones, America's Own Match Co., Cincin-
nati, Ohio; Walter L. Katzenstein, Pennstate Cigar
Co., Philadelphia, Pa.; Albert L. Kaufman, A. F.
Schultz Co., Erie, Pa.; Wm. Leidersdorf, Lewis-
Leidersdorf Co., Milwaukee, Wis. ; Monroe S. Lewis, I.
Lewis Cigar Mfg. Co., Newark, N. J. ; Jacob Lipman,
Frye's Cigar Co., Brockton, Mass.; James J. Moore,
T. J. Kennedy Tob. Co., Glens Falls, N. Y. ; Arthur E.
Nack, RoAve Mfg. Co., New York, N. Y. ; Stanford New-
man, M. & N. Cigar Mf rs., Cleveland, Ohio ; Wm. B.
Pomsett, III, Myers Cox Company, Dubuque, Iowa;
Walter Popper, E. Popper & Co., New York, N. Y •
Edward F. Requard, Neudecker Tob. Co., Baltimore!
Md. ; Albert G. Becker, F. S. Edwards Tob. Co., Kan-
sas City, Kan. ; Marvin H. Schwartz, Schwartz Bros.
Cigar Co., Philadelphia, Pa.; Robert Stern, L. & H.
btern. Inc., Brooklyn, N. Y. ; Sidney A. Tarrson, The
Tarr Co., Chicago, III; Walter F. Witt, Larus and
Bro. Co., Richmond, Va.

The N. A. T. D. Club for Women, whose member-
ship has grown phenomenally and now numbers 331
is well organized to see that the ladies who attend will
be royally entertained.

The official entertainment committee of the
Women's Club is made up of Mrs. Myron Benzion,
chairman ; Mrs^ Fred H. Eisner, Mrs. Samuel Pines
Mrs. Michael Bloom and Mrs. W. S. Fishman. The
chairmen of the other committees are : Admissions,
Mrs. J. J Van Buren; Souvenirs, Mrs. Milton J. Ben-

m""'""^ i''^^'''^,^'''- ^^^^^^ Branower; Registration,
Mrs Fred H. Eisner; Convention Hostesses, Mrs. J.
C Newman.^ Thirty-eight hostesses will serve on the
latter committee.

BENSON & HEDGES TO MAXON

Benson & Hedges, manufacturers of Virginia
Rounds Debs and Parhament cigarettes, announcS the
appointment of Maxon, Inc., to handle their advertis-
ing account, effective immediately. The a^encv also
has been named by Continental Briar Pipe Co manu
facturer of Royal Duke pipes. ^ '

8

ONTARIO TOBACCO MARKETS

N November 15th the Ontario (Canada) Flue-
Cured Tobacco Marketing Association set the
minimum average price for the 1940 flue-cured
crop in Ontario at 20.5 cents per pound, or 1
cent above the 1939 minimum, according to a report
from American Vice Consul Adam Beaumont at Ham-
ilton. With the exception of 1939, this is the lowest
minimum average price in five years. The average
prices actually received by growers have also been on
a downward trend since 1936, when they averaged 29.4
cents per pound with the minimum average set for 25
cents.

Sales in the Norfolk and West Lome districts w^ere
scheduled to open on November 26th, and in the Essex
district on December 3d. Directors of the Association
announced that there would be no buying for Great
Britain in the 1940 market, as the British Government
has found it impossible to allow any exchange for this
purpose due to the vital need for monev to carry on
its purchase of war materials. They s^tated further
that there was ample Canadian tobacco in Great Britain
to supply manufacturers' needs for at least a year and
a half. The Canadian growers have, therefore, only
the domestic market to depend upon for absorption of
the 1940 crop.

The Canadian Government on December 2d intro-
duced into Parliament a series of measures designed to
conserve foreign exchange, particularlv dollar ex-
change, for the purchase of essential wartime imports
according to a radiogram from Ottawa. '

The first measure prohibits, among other things,
the imports of manufactured tobacco from non-sterhng
countries; and the second measure places the importa""-
tion of unmanufactured tobacco from non-sterling
countries under licenses, to be issued only for restricted
quantities. Since practically all the Canadran tobacco
imports come from the United States, these measures
adverselv affect our tobacco export trade.

Until Canada began to produce its own supplv of
flue-cured tobacco, about 15 or 20 million pound's of
^1^ -li^^^^ ^^^^ tobacco (flue-cured principallv) and
a halt million pounds of United States tobacco products
were sold there annually. This market has declined,
however, and our tobacco exports to Canada in 1939
???^£^A^^^ ^^?"^ ^ million pounds of flue-cured leaf and
11^,000 pounds of tobacco products, or a monev value
of approximately $1,500,000.

PARAGUAYAN MARKET

Tobacco is one of the principal items of Paraguay
aftected by the critical situation now prevaiHng in
J^urope, according to a report from the American Con-
sulate at Asuncion. Paraguayan tobacco was sold al-
most exclusively to The Netherlands, Belgium, and
Germany prior to the present European war. Other
^outh American countries either produce their own to-
bacco or use only small quantities of the Paraguayan
leaf thus making it necessary to plant a different type
ot tobacco m Paraguay or maintain comparatively
available'' European outlets are once more

.r.aM^^^^''''''.PT^? in Paraguay have dropped consid-
erably, due to lack of interest from the neighboring
countries m Paraguayan leaf. Exporters are buyin|
almost none of the new crop, and farmers are left with
fh^f ^^'^\^\^y ^^n ^^s^- No very recent data are avail-
fnr 10^7 1 ?noo P^^^^^^iou in Paraguay, but the crop
for 1937 and 1938 averaged about 14 million pounds.

The Tobacco World

■

1939 TOBACCO CENSUS REPORT

URING last year 5,223,458,000 cigars were
manufactured in American factories, a prelim-
inary Bureau of the Census report on this in-
dustry, compiled from Census of Manufactures
data covering 1939, reveals. Of this total, 5,166,458,000
were cigars made in plants wliose main ])roduction was
cigars, and 56,910,000 were made as secondary prod-
ucts in cigarette, chewing and sniokin

g tobacco and

snuff factories. The cigars made in cigar factories
were valued at $159,092,560 and those made in other
plants at $810,442.

There were 598 u»tablishiiieius listed m the cigar
manufacturing industry last year. Those establish-
ments turned out $457,528 of other tobacco x^roducts
(mainly chewing and smoking tobacco), $1,113,724 of
scrap and salable refuse and $90,612 of miscellaneous
products (including receipts for contract work), in ad-
dition to the $159,092,560 w^orth of cigars. The total
value placed on all products made in the factories came
to $160,754,424.

Factory expenditures for the year, covering cost
of materials, revenue stamps, supplies, fuel, purchased
electric energy and contract w^ork amounted to $79,-
249,087. Besides these expenditures, the plants paid
out $5,075,463 in salaries to 2398 salaried employees
and $34,179,556 in wages to 50,897 wage-earners.

The 1939 production of cigars was valued at eight
niillion dollars less than that of 1937, the previous year
in which a Census of Manufactures was taken. In 1937
the cigar output was evaluated at $167,865,027 by the
manufacturers, while the estimated dollar value placed
on last year's output was $159,903,002.

The preliminary report on wooden and part-
Wj3oden cigar boxes produced last year disclosed that
$5,646,150 of cigar boxes were turned out by 59 plants
whose main product during 1939 was cigar boxes. Fig-
ures on cigar boxes made as secondary products in
other industries are yet to be compiled.

Of the cigar boxes for which figures are on hand,
55,002,230 w^ere designed to hold 50 cigars, 11,630,344
for 25 cigars, 5,596,218 for 100 cigars and 1,220,141 for
a miscellaneous number of cigars and for cigars of
unspecified lengths and miscellaneous sizes.

INFORMATION PLEASE ADDS

The American Tobacco Company will secure a
number of new listeners for its Information Please pro-
ATPn i^^'iV^f addition of twenty-three stations to the
i o o^ Network, which carried the program Fridavs
from 8 30 to 9.00 P M., E. S. T. Three of the stations
nav e already joined the network and the other twenty
will carry the program on and after Januarv 3, 1941
Ihis addition gives Information Please a Red network
ot IIJ stations throughout the country. Program is

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i^oicl & Ihomas is the agencv.

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ror particulars about Manilas write to

THE PHILIPPINE TOBACCO AGENCY

2362 Massachusetts Avenue, N. W., Washington, D. C.

January, ig^j

More American Tobacco for Australia

LIMITED quantity of unmanufactured to-
bacco is to be admitted into Australia from
non-sterling countries during the year ending
June 30, 1941, according to an order from the
Customs and Excise Office at Sydney, as reported to
the Office of Foreign Agricultural Relations. It would
appear that this action improves the outlet for Amer-
ican tobacco in Australia. The quantity for which
licenses will be issued is based upon a varying percent-
age of the quantity of non-sterling leaf actually used
uy manuiacLurers auriiig ine year unueu juiie ov, ±^±0.

The percentage that will apply is based upon the
period in months that stocks of non-sterling leaf held
by manufacturers on June 30, 1940, will last, on the
basis of the average monthly consumption of non-
sterling leaf during the year ended June 30, 1940.

Australian manufacturers have been asked to sup-
ply the Customs Office with details necessary to appli-
cation of the above formula, and when the annual allo-
cation in pounds for each manufacturer has been deter-
mined, licenses may be issued, upon application, for
that quantity. In arriving at the value for which
licenses will be issued, an average price of Is. 8d. (26.9
cents) per pound (c. i. f. & e. Australian currency) is
to be taken.

If the manufacturer concerned is able to import a
greater quantity of leaf for the amount of exchange in
Australian currency allocated (on the basis of Is. 8d.
per pound), this additional quantity will be permitted
importation, subject to specified conditions. Irrespec-
tive, however, of the annual allocation by weight estab-
lished in accordance with the formula, the value for
which the license is issued must not be exceeded. If
the leaf to be purchased averages over Is. 8d. per
pound, Australian currency, the quantity purchased
must be reduced to keep within the limits of the value
of the license.

According to the Minister of Trade and Customs,
stocks of imported leaf tobacco by Australian manu-
facturers on June 30, 1940, amounted to 47,470,000
pounds, 38,014,000 pounds of which were imported to-
bacco and 9,456,000 pounds Australian production. On
the average, fully 97 per cent, of the leaf tobacco im-
ported into Australia comes from the United States,
and the greater part of the remainder from the Nether-
lands Indies and Brazil. Thus, practically all of the
tobacco import trade is with non-sterling countries.
There has been a tendency in Australia during the
past decade, however, to use more of the Australian
growth at the expense of imported tobacco (see For-
eign Crops and Markets, September 30, 1940). Con-
sumption of Australian leaf in the domestic industry
during 1939-40 reached a record of nearly 6 million
pounds, or 22.5 per cent, of the total, whereas consump-
tion of imported tobacco, despite the stimulus of im-
pending war restrictions, amounted to only 77.5 per
cent, of the total, the lowest in history.

A recent increase in the import duties on foreign
tobacco entering Australia affords further protection
to domestic leaf. Effective November 22, 1940, the
import duty on leaf tobacco for the manufacture of
cigarettes was increased by 2 shillings (32 cents) per
pound; on other leaf tobacco by Is. 6d. (24 cents) per
pound. On manufactured tobacco, the duty was also
increased 2 shillings per pound; and on cigarettes by
2s. 9d. (28 cents) per pound. At the same time, excise
taxes on the manufacture of Australian tobacco prod-

TO

ucts was increased by the same rate. On December 1,
1939, imports of tobacco products from non-sterling
countries were prohibited. This action eliminated the
importation of American tobacco products which in
recent years averaged about 648,000 pounds annually.

REVISES ''HIT PARADE

» »

Early in January the American Tobacco Company
will revise the pattern of its popular Columl)ia pro-
ictm, ii/ui rill i til ciQe, lu iiiciUuu vcjiiuiy uiuau-
casts originating at the various Army trainiiii;' camps
throughout the country. The new portion of '*Your
Hit Parade,'' which is broadcast each Saturdav at
9.00-945 P. M., rebroadcast 12.00-12.45 A. ]\r., over 102
CBS stations in the interest of Lucky Strike cigarettes,
will feature Jerry Lester as master of ceremonies, a
name '^band of the week,'' dancer Floria Vestoff, vocal-
ist Dean Janis, and magician Gali Gali. The current
cast of **Hit Parade" stars — Barrv Wood, Bea AVain
and Mark Warnow and his orchestra — will continue to
be heard with the ten top songs of the week direct from
New York City.

Jerry Lester, stage, screen and radio comedian,
will act as host for the ^^Hit Parade" parties at the
training camps and will be master of ceremonies for the
touring unit. Famous *'name" bands will be used each
week and will play ^'Hit Parade" numbers and
*^ extras."

In addition to the broadcast, the '^Hit Parade"
unit will present a stage show for soldiers and sailors,
with Lester featured.

Floria Vestoff, a tap dancer who recently appeared
for twelve weeks on the Astor Roof with Tommy Dor-
sey's orchestra; Dean Janis, girl vocalist, who was
formerly featured with Hal Kemp's orchestra, and GaH
Gali, a top ranking magician who is currently perform-
ing at the Rainbow Room in New York City, will be
heard on the broadcast and in the camp shows.

Frederick A. (Ted) Long, formerly of the CBS
staff, will produce the new portion of the ''Hit Pa-
rade." The agency handling the account is Lord &
Thomas.

MODEL TOBACCO LIGHTS UP!

General Electric floodlights give "that added
touch" to the attractive Model Tobacco plant of the
United States Tobacco Company in Richmond. Cred-
ited with being the outstanding industrial building in
the South, this plant is modern to the last detail and
may be considered representative of the well-planned
''industrial building of tomorrow."

Type L31E, G-E floodlights illuminate both sides
of the building and the pilasters at each end. Flood-
lights were not furnished for illuminating the Model
Tobacco sign, the lighting effect being obtained by an
ingenious arrangement of regular G-E Mazda lamps
behind the sign.

PINEHURST CIGARETTE

Pinehurst is the name of a new cigarette, spon-
sored by Roger L. Swain, of Danville, Va. It is re-
ported to embody in its manufacture a new hygroscopic
agent and a new method said to eliminate throat irri-
tation.

The Tobacco World

iABLE-

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col

Mr. Dealer:

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plain
end! Save these valuable coupons for cash or

one of the seventy luxury premiums.

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PRODUCTION GROWS 5.37/^.

GAIN of 5.3 per cent, in production last year
over 1937 was registered in the factory value
of hard-rubber mouthpieces for pipes and
cigar and cigarette holders. According to a re-
port of the 1939 Manufactures Census, production of
these items rose in value from $401,103 to $422,193.
These figures were released by William Lane Austin,
Director of the U. S. Census Bureau, in a bulletin on
the rubber products industry, which in 1939 had 519
establishments with an output totaling $264,525,200.

A separate report has already been issued cover-
ing the manufacture of cigarette and cigar holders
from materials other than hard rubber and of tobacco
pipes from all materials. The 32 establishments in this
industry reported 1939 production with a value of
$7,507,616, which is 1.8 per cent, under the 1937 level
of $7,647,105. Tl^e number of plants in the field is an
increase over the 1937 figure of 25.

For materials, supplies, fuel, purchased electric
energy and contract work, they spent $2,299,308, or 8.9
per cent, less than their 1937 costs of $2,522,685.

They gave employment to 2481 wage earners, who
received $2,406,530. Salaried persons numbered 173,
with earnings of $497,076.

According to preliminary reports to the Census
Bureau from manufacturers of small leather goods,
they produced last year 1,123,917 tobacco pouches with
a factory value of $385,507. They also reported pro-
duction of cigar and cigarette cases to the number of
1,509,211 valued at $424,597. It is interesting to note
that in 1937, the last year previously covered by the
Census of Manufactures, these manufacturers pro-
duced only 327,138 cigar and cigarette cases valued at
$219,606. Comparable figures for 1937 on tobacco
pouclies are not available.

The reports were compiled under the supervision
of Thomas J. Fitzgerald, Chief Statistician, Division
of Manufactures.

SCARCITY IN NETHERLANDS

The cigar and cigarette factories of the Nether-
lands Indies have been forced to adopt special meas-
ures to provide for the scarcity of tobacco products
arising from the curtailed tobacco imports from
Europe, according to a report from the American Con-
sulate in Batavia. Imports of shag, or cigarette to-
bacco, from The Netherlands were cut off after the
invasion of that country in May. Shag, which is used

January, 1^41

both as pipe and as cigarette tobacco, is now being
satisfactorily produced and marketed in The Nether-
lands Indies. Cigars are also being produced, and one
factory is said to be making a brand similar in quality
to those formerly imported from The Netherlands.

Owing to the favorable weather conditions during
September and October, the 1941 tobacco harvest of
the State of Bahia in Brazil is expected to be larger
than was originally anticipated according to a report
from the American Consulate at Bahia. The Tobacco
Institute now estimates the crop at between 50 and 60
million pounds. The quality is expected to be good.
No estimate is yet available for the total production of
Brazil, but Bahia usually produces about one-third of
the crop.

For many months, market conditions for Brazilian
tobacco have been very poor. Loss of the European
markets, Germany and The Netherlands in particular,
has had a disastrous effect upon the export trade (see
Foreign Crops and Markets, October 28, 1940). These
two countries formerly bought the bulk of Bahia ^s leaf
exports. During the first nine months of 1940, total
exports of leaf tobacco from Bahia declined by almost
half, amounting to only 25 million pounds. Stocks, in
the meantime, increased. On September 30, 1940, total
leaf stocks were over 33 million pounds, the highest for
a similar date in five vears.

CANADIAN TOBACCO CROP

The second seasonal report on the 1940 Canadian
commercial crop of leaf tobacco, as of July 15, indi-
cates that in Ontario the crop as a whole is from 10
days to two weeks behind normal growth schedule.
The Flue-cured crop is two to three weeks behind nor-
mal grow^th in other years. The Burley crop is not
retarded to the same extent. Excessive rains and cool
weather resulted in considerable rootrot and stunting.
Most fields are now showing marked recovery due to
more favorable weather, but the crop is still below
average. Flue-cured tobacco in the Old Belt has not
suffered to the same extent, as Burley. Conditions are
quite different in the New Belt, particularly in Nor-
folk County where conditions served to develop a good
root system and rapid growth. In Quebec the crop
has shown improvement but is still about two weeks
behind normal growth. In the northern area the crop
is generally below average. In the southern area the
crop is now in average condition. Wind, hail, frost
and cutworms have caused some damage.

II

\

GENERAL CIGAR DONATES

A contribution of 19 revolvers formerly used by
night watchmen guarding cigar plants in Pennsylvania
has been sent to the American Connnittee for Defense
of British Homes, 10 Warren Street, New York City,
for shipment to England where they will be used by
British civilians in defense of their homes, it was an-
nounced yesterday by C. Suydam Cutting, chairman of
the Committee.

The contribution was made by the General Cigar
Company, makers of White Owl cigars, of 119 West
Fortieth Street. In a letter to the Committee, W. B.
Wolf, purchasing agent of the cigar company, said in
part:

**At one of our Pennsylvania plants, we have ac-
cumulated over a period of years 19 revolvers of va-
rious makes, which are all in fair condition. These re-
volvers were purchased for night watchmen in the
days when we had a great many small hand-work cigar
plants scattered through Pennsylvania. Since the cigar
industry is now concentrated in large modern machine-
operated plants, we have these surplus revolvers which
we would like to offer to our friends across the sea.^'

Included in the General Cigar Company's gift to
the Committee were 13 Iver Johnson .38 calibres; 3
U. S. Eevolver Company .32 calibres; 2 Harrington
and Richardson .38 calibres, and 1 Smith & Wesson .38
calibre, having an aggregate value of $250.

In making public the General Cigar Company's
gift, Mr. Cutting said that the need for small arms in
England was still great and expressed the hope that
other commercial organizations would follow the lead
of the General Cigar Company in contributing small
arms which can be used by British civilians in the event
of invasion.

MEXICAN TOBACCO PRODUCTION

Consumption of leaf tobacco by domestic manufac-
turers in Mexico during the first nine months of the
current fiscal year amounted to 28.7 milUon pounds,
an increase of approximately 2 per cent, as compared
with the same period a year ago, according to a report
from Agricultural Attache L. I). Mallory at Mexico
City. Mexico imports only small quantities of tobacco,
and over 99 per cent, of the leaf consumption in fac-
tories is grown within the country. At present there
are indications of general business improvement and as
employment increases in 1941 from manufacturing
activity, construction, and other developments, the de-
mand for tobacco products is likely to rise further.

The consumption of tobacco in Mexico has been on
a general upward trend during the past decade, in-
creasing from 31.3 million pounds in 1935-36 to 38.3
milHon in 1938-39, but the domestic crop has risen in
far greater proportion. For the past four years (1937-
1940) tobacco production in Mexico has averaged about
44 million pounds annually, or an increase of 65 per
cent, over the previous four-year average.

No data are available as to loaf stocks in Mexico,
but there is evidently some accumulation. Consump-
tion for the past four years has averaged but 37 million
pounds, and less than one-half of 1 per cent, of the
Mexican crop is exported. Thus, not allowing for
shrmkage, waste, etc., there is a gross annual spread
of about 7 milHon pounds between production and con-
sumption of the crop.

t2

CIGARETTES IN PUERTO RICO

Sales of United States made cigarettes to Puerto
Rico broke all records in the fiscal year just ended, the
territory having purchased 863,100,000 cigarettes or
6 per cent, more than in the preceding year when the
previous high record was set, according to a statement
by the Puerto liican Trade Council, based on United
States Department of Commerce figures. The island's
purchases have more than doubled since 1930, and the
value passed the $4,000,000 mark for the first time this
vear, the council said.

Puerto Kico during the year spent more for cigar-
ettes purchased from the mainland than it spent for
automobiles or slioes, and remained the second largest
market for cigarettes shipped from continental United
States, the report said.

The territory's total purchases from United States
business concerns also set a new high record during
the year, being valued at $100,500,000, or 33 per cent,
higher than in the preceding year, the council reported.
The greater buying power was attributed mainly to
heavy Federal expenditures for relief and national de-
fense and to temporarily increased employment in the
sugar industry, resulting from the four-month suspen-
sion of sugar quotas last fall.

CANADIAN TOBACCO CONSUMPTION

An unrevised statement issued by the Canadian
Department of National Eevenue shows that in June,
1940, there were entered for consumption in Canada
2,006,929 pounds of cut tobacco, 249,201 pounds of plug
tobacco, 83,536 pounds of snuff, 57>,268,307 cigarettes,
and 13,133,719 cigars. Total amounts of tobacco and
tobacco products entered for consumption during the
first six months of 1940, compared with the correspond-
ing months of 1939, were as follows: Cut tobacco,
13,101,600 pounds (11,542,711 pounds in the first six
months of 1939) ; plug tobacco, 1,584,535 pounds
(1,548,272); snuff, 420,768 pounds (399,629); ciga-
rettes, 3,696,589,068 pieces (3,293,213,975); cigars,
74,017,218 pieces (56,581,235), and no foreign leaf to-
bacco (893,059 pounds). Excise taxes were paid on
10,866,962 cigars during June, 1940.

MEXICO'S BIGGEST CROP

The production of the 1939 tobacco crop of Mexico
has been officially estimated by the Ministry of Agri-
culture at 21,206,077 kilograms, an all time record for
high. The average yield per hectare, which was at a
record level for the area planted to the 1939 crop was
estimated to be less than in 1937 and 1938. The 1940
outlook is for another large crop. The 1934-1938 aver-
age production amounted to 15,431,000 kilograms and
the recent large crops have provided a substantial sur-
plus in view of the quantity of domestic tobacco con-
sumed annually. Consumption of domestically-grown
tobacco between 1935 and 1939 ran between 14,000,000
and 17,000,000 kilograms. That production in 1939 was
more than double that of 1933. The upward trend in
leaf tobacco production in Mexico has been quite
marked for several years.

The Tobacco World

H E AP Fl N E RADIO SHOW

MONDAY NIWTS. COLUMBIA BROAOCASTIMa SYSTEM

SII LOCAL NfMfS»AI»IK

PON TIME AND STATION

HEAR ED ROECKER/ "The Model
Tobacco Singing Salesman," with his
young, magnificent, baritone voice. Hear
him sing the songs you like best, as you
seldom ever hear them sung.

HEAR FIELDS AND HALL, whose
nhonograph records are in millions of
American homes.

Hear them play, sing and recite their own
compositions, with homespun humor and
philosophy

HEAR WOODY GUTHRIE, the

Okie Cowboy (*«I ain't no drugstore cow-
boy") from Okemah, Okla. Hear him
sing his own, original Dust Bowl Ballads,
while a-picking at his ol' ^*-tar. ««The
dustiest of the Dusty "

HEAR THE MODEL TOBACCO
ORCHESTRA in its special arrange-
ments that have won the applause of mil-
lions of "Pipe Smoking Time" fans from
coast to coast the past two years.

GREECE CONTINUES EXPERIMENTS

XPERIMENTS in the production of flue-cured
tobacco in Greece from American seeds have
been in progress since 1937, but although the
area planted in 1940 was double that of 1939,
the results have not been as successful as had been
expected. Experiments were conducted on approxi-
mately fifty acres in 1940, according to a report re-
ceived in the Office of Foreign Agricultural Relations,
and early in the year the Government engaged a British
expert to furnish advice on curing, manipulating, stor-
ing, and packing of this tobacco. The best quality,
according to the expert, was obtained in the Katerini
district, but the size and thickness of the leaf were still
much below that desired. No information is available
on the final production figure for 1939, nor on estimates
for 1940; however, the average yield for 1939 was re-
ported as over 1100 pounds per acre.

A new law provides that the experimental cultiva-
tion of flue-cured shall be regulated each year by the
Commission for the Protection of Greek Tobacco, but
the method and extent of the experiments are to be
determined by the IMinister of Agriculture. Actual cul-
tivation may be undertaken (1) by the Tobacco Insti-
tute of Greece, (2) by growers under special contract,
or (3) by private individuals under special permission
of the Ministers of Finance and Agriculture.

The Ministry of Agriculture will supervise the
technical side of the experiments, and the Ministry of
Finance will be responsible for all administrative*^ de-
tails. The two Ministers are authorized to employ the
services of not more than three foreign experts at a
total cost not to exceed 300,000 drachmas ($8000) an-
nually.

PIPES AND CIGARETTE HOLDERS

Manufacturers of tobacco pipes and cigarette hold-
ers reported a total production last vear valued at
$7,507,616 as compared to the 1937 total of $7,647,105,
a decrease of 1.8 per cent. The 1939 figures were re-
ported by 32 establishments while the 1937 report cov-
ers 25 establishments. Wage earners primarily en-
gaged m manufacturing of tobacco pipes and cigarette
holders last year numbered 2481, an increase of 4.2 per
?non f ^P'Y^^ ^^^^ ^''^^2 reported for 1937. Wages in
1939 totaled $2,406,530, 0.2 per cent, less than the 1937
%ure, $2,412,522. Value added bv manufacture rose

iqI(P^/ ^^^^t- 1^«"^ the 1937 figure of $5,124,420 to the
1939 figure of $5,208,308.

January, ig^j

SPRUCE LUMBE R

for CIGAR BOXES

It's Brighter
It's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 67 years

15 Washington St. Newark, N. J.

Esiabliihcd 1886

"BEST OF THE BEST"

MBnufactur«>d bjr

A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES Tampa and Kep West, Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-De sign-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit, Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling. W. Va.

'3

iA

Tobacco Merchants' Association

Registration Bureau, Jew^yoi

ison Ave.
YORK CITY

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

Kegistration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A— An allowance of $2 will be made to members of the Tobacco Mer-
chants' Association on each registration.

Note U — it a report on a search of a title necessitates the reporting of more
than ten (lU) titles, but less than twenty-one (21), an additional charge of One
Dollar ($1.00) will be made. It 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
'nade for every ten (10) additional titles necessarily reported.

NEW REGISTRATIONS

MOUNT RUSHMORE:— 46,796. For cigars. Registered by Con-
solidated Litho. Corp., Brooklyn, N. Y., on August 17, 1940. (By
consents of Austin, Nichols & Co., Brooklyn, N. Y., and P. Loril-
lard Co., New York, N. Y.)

TUFUMA: — 46,795. For all tobacco products. Registered by F. S.
Baer Co., Los Angeles, Calif., on November 19, 1940.

TRANSFERRED REGISTRATION

LA IMPOSA:— 23,001 (Tobacco World). For cigars, cigarettes and
cheroots. Registered September 9, 1911, by C. B. Henschel Mfg.
Co., Milwaukee, Wis. Transferred to F. S. Baer Co., Los Angeles,
Calif., on December 2, 1940.

Internal Revenue Collections

November
Source of Revenue 1940 1939

Cigars $ 1,308,292.98 $ 1,314,413.88

Cigarettes 46,635,937.47 43,385,910.67

SnuflF 515,792.40 583,721.26

Tobacco, chewmg and smoking 4,632,696.87 4,534,868.47

Cigarette papers and tubes 107,022.70 157,184.30

Leaf dealer penalties 92.16 25.00

♦Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue based on

manufacturers' return of production)

Month of September

_ , Increase or Decrease

Product 1940 Quantity Per Cent.

P^".», 4,145,011 - 325,577 7.28

Twist ••......; 469,889 - 12,037 2.50

Fine-cut Chewing 398,413 + 50,042 14.36

Scrap Chewing 3,524,595 + 3,120 0.09

^^okmg 17,762,417 + 259,109 1.48

Total 26,300,325 - 25,343 0.10

Nine Months Ending September 30

n J ^ Increase or Decrease

P™<'»<=t 1940 Quantity Per Cent.

?^P, ^5'?j9'22? - 2.564,756 6.49

iwist 4,166,441 — 84 523 1 OQ

Fine-cut Chewing 3,492,367 + 40,923 119

Scrap Chewing 31,900,885 + 794 246 2 5?

^^o^^^S 150,294,492 - 410;501 o:27

"T^^^^ 226,794,414 _ 2,224,611 "~a97

♦The production figures are in pounds, and are subiect to revision
R"evlre''^'''' ^" '''' ^"""^^ '''^'' ^^ ^'- ConnnislioTer^Tfntcrnal

'4

TOBACCO TRAD£ ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

TESSE A. BLOCK, Wheeling, W. Va President

WILLIAM BEST, New York, N. Y Chairman Executive Committee

GEORGE W. HILL, New York, N. Y Vice-President

GEORGE H. HUMMEL, New York, N. Y Vice-Presiden

S. CLAY WILLIAMS, Winston-Salem, N. C Vice-Presiden

JULIUS LICHTENSTEIN, New York, N. Y 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

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

• HENRY J. PINNEY, Worcester, Mass President

EDMUND C. DEARSTYNE, Albany, N. Y Vice-Presiden

\. RENZ EDWARDS. Kansas City, Kan Treasurer

JOSEPH KOLOuNY, ;juu Mttn Ave., Mew York, N. Y Secretary

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LASCHOW, 862 East Fifteenth St., Brooklyn, N. Y President!

?'TK¥f^^^^^C^' 52 Klein Ave., Trenton, N. I First Vice-President

J/A^r^ir^Ji.^^^^^' 780 West End Ave., New Vork, N. Y. ..Executive Secretary
ALBERT FREEMAN, 25 West Broadway, New York, N. Y Treasurer

i^RETAIL TOBACCO DEALERS OF AMERICA, INC.

ERIC CALAMI A, 233 Broadway, New York, N. Y Presidenti

JOHN MAUTE Vice-President

CLIFFORD M. DAWSON .Trersur«

MALCOLM L. FLEISCHER Secretary

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA
INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA President

THOMAS C. BREEN Treasurer

SAMUEL BLUMBERG '... """"GeneVal Counsel

Executive Committee— Alvaro M. Garcia (Ex-officio), Thomas C. Breen, Harley W

Jefferson, D. Emil Klein, Walter E. Popper, Harry C. Carr, and Arthur A

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion, Pa President

T. E. BROOKS. Red Lion, Pa Vice-Pres den

ARTHUR S. ZIEGLER, Red Lion. Pa Treasurer

RUSSELL S. STINE, Red Lion, Pa ........".'.Secretary

>^ ' "FLORIDA CIGAR MANUFACTURERS ASSOCIATION

JOSE P. PEREZ, Tampa, Fla President

JOHN LEVY, Tamoa, Fla Treasurer

FRANCIS M. SACK, Tampa, Fla .■.■.'.".'.■.'.'.'.'."Secretary

l^^INDEPENDENT RETAIL TOBACCONISTS'

ASSOCIATION

BERNARD SCHWARZ President

ERIC CALAMIA First Vice-President

BEN;. FRIEDMAN Second V ce-Prel den

JOSI?PH GROSSMAN Third V ce-PresS

ARTHUR W. JONES Financial Se"ita?y

LOUIS GROSSMAN \ financial .^ecretary

BERNARD BERNSTEIN, 42 Broadway, New Yoric',' N.' Y. ''.'.'.".".".".".".'.'.;". .Secretary V*]

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC.

JOSEPH FRIEDMAN President

JACK EDELSTEIN Treasurer

Leo RIEDERS, 3800 Broadway, New York, N. Y. ..'.■.'.".".'.".'.'.'.■.'.■.■.'.■.'.■.■.'.'.■.Secretary

/

OVERTIME MUST BE PAID

Word has been received from the Legislative Com-
mittee of the National Association of Tobacco Distrib-
utors that the obligation to pay time and one-half after
forty hours, under the Fair Labor Standards Act, is
not voided by the existence of a union contract calHng
for a work week of more than forty hours without the
payment of overtime— except in certain instances. The
committee quotes a warning from Col. Philip B. Flem-
ing, administrator of the Wage and Hour Division,
U. S. Department of Labor, as follows:

''A clause providing for a work week of more than
40 hours without the payment of overtime does not
relieve the employer of the necessity of paying time
and one-half in accordance with the provisions of the
Act.

*'Such a clause will have no legal effect, although
the rest of the contract may stand. The standards
fixed m the Act may not be lowered by any kind of
agreement.''

The Tobacco World

>i^Si

RY
EA vi f04f

1941

♦ w *

▲

ESTABLISHED
1881

CIGARETTES SET A
NEW ALL-TIME HIGH

A new all-time high was established in
1940 by cigarettes, the withdrawals ag-
gregating 180,666,247,809 — an increase
of 8,196,250,425, or 4.75 per cent., over
the previous year.

An increase, although relatively small,
was recorded by cigars, the total with-
drawals for the year showing a gain of
57,618,544, or 1.05 per cent. Class A
cigars accounted for 89.6 per cent, of all
cigars withdrawn.

The figures, which include products
from Philippine Islands and Puerto Rico,
are from the Tobacco Barometer of the
Tobacco Merchants Association of the
U.S.

Gipyright 1941,

Liggett & Myers

Tobacco Co.

Right hers is the cigarette with high score
for REAL MILDNESS, BETTER TASTE and COOLER SMOKING.
Chesterfield's right combination of the world's best cigarette
tobaccos is winning more and more smokers like yourself.
Try them . . . you can't buy a better cigarette "T^

HoBART B. Hankins — Edit Of

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

FEBRUARY, 1941

No. 2

ECAUSE of our abiding faith in the resultful-
ness of intelligently conceived, competently
conducted, and persistently continued promo-
tion, we hail with enthusiasm the new Cigar
Institute of America, organized to revive the popu-
larity of cigar smoking. The high standing of its
sponsors and the workmanlike manner in which they
made their pre-campaign survey, to all intents and
purposes following out the General Motors principle,
''Get the Facts, or the Facts Will Get You," guar-
antee, as well as such things can be guaranteed in
advance, the success of this latest and most ambitious
program to restore the cigar to its former prominent
place in the popularity of smokers everywhere.

OOK at the roster of officers and directors
selected by twenty-six cigar manufacturers,
representing two-thirds of the country's total
cigar sales volume: Albert H. Gregg, former
head of Faber, Coe & Gregg, Inc., and of the American
Cigarette & Cigar Co., president; Alvaro M. Garcia,
of Garcia & Vega, and president of the Cigar Manu-
facturers Association, vice-president; D. Emil Klein,
of D. Emil Klein Co., treasurer; Samuel Blumberg,
general counsel of the Cigar Manufacturers Associa-
tion, secretary; William A. Best, vice-president of
General Cigar Co.; A. Joseph Newman, president of
Bayuk Cigars, Inc.; Julius Lichtenstein, president of
Consolidated Cigar Corporation; Albert H. Gregg;
Harley W. Jefferson, of American Tobacco Co.;
Everett J. Meyer, president of Webster Eisenlohr,
Inc.; D. Emil Klein; Melville E. Regensburg, vice-
president of E. Regensburg & Sons; Benjamin L.
Grabosky, of Grabosky Bros.; R. B. Donnelly, vice-
president of Waitt & Bond, Inc. ; Thomas E. Brooks,
of T. E. Brooks & Co.; Sanmel Siegel, of A. Siegel &
Sons, Inc.; Arthur Schwartz, president of Max
Schwartz, Ltd. ; Alvaro M. Garcia ; Walter Popper, of
E. Popper & Co., Inc. ; Walter L. Katzenstein, treas-
urer of Pennstate Cigar Corp., directors. The ex-
ecutive committee consists of Messrs. Best, Lichten-
stein, Meyer, Newman and Regensburg, ex-officio mem-
bers being Messrs. Gregg and Garcia. Director of
promotion and sales counsel for the Institute is Bert
M. Nussbaum, vice-president of the Lambert & Feaslev
advertising agency, of New York, who spent a yeaV
conducting a survey for the cigar industry. Maior
purposes of the Institute will be to win back cigar
smokers and to mobilize manufacturers, jobbers and
clealers for a concerted drive to improve the market-
ing ot cigars.

A

HESE objectives will be pursued through the
medium of publicity, advertising and mer-
!l chandising, backed up by market research

wort U.i^^ ^"'^ r?' "^'l^ ^^ ^^^^^^^ t^ foundation
woik, m the expectation that enough progress will be

?S^Es^-'^^^^'::^^^'- «•'■■' ' "■■"■

made in the matter of influencing a favorable public
attitude toward cigars to prompt the use of extensive
advertising. The idea is to give every opportunity to
jobbers and dealers to co-operate in the stimulation
of cigar sales, to their own profit and advantage. It
was announced by Mr. Gregg that cigar manufacturers
will comprise the active membership. Associate mem-
bership will be offered to companies that supply the
cigar industry with raw materials, machinery, pack-
ages and accessories, also to jobbers and large re-
tailers. ''The more nearly this great project ap-
proaches a 100 per cent, effort by everybody interested
in cigar sales," he said, "the more surely and quickly
will our aims be realized. We all recognize that the
enterprise we have entered upon is no picnic. It isn't
going to be easy to change people's habits. It will
take hard work, patience and persistence over several
years. But with the fine spirit of co-operation that
is being shown all along the line, I am confident our
efforts will bear fruit. In passing, I want to express
my appreciation to the trade journals serving our in-
dustry for their yeoman service in keeping the issue
of cigar industry promotion alive during the long
period it has taken us to crystallize the thought into
action. They, too, deserve a lot of credit for the
formation of the Cigar Institute of America.''

VIDENTLY, the organizers have reached the
sound conclusion that the use of tobacco in any
form is a good premise to start from, so that
there will be no attempt to bolster cigar sales
by attacking the cigarette or the pipe. In other words,
the campaign will be based on the positive principle
of the merits and pleasures of cigar smoking itself.
It will be a constructive campaign, not a destructive
campaign. And certainly there will be no linking of
the cigar with poolroom hangers-on, as was done by
Advertising Age in its report of the founding of the
Institute, under the headline, "Cigar Makers Come
to Life at Last." We might tolerate that head, but
the poolroom references in the story were a good ex-
ample of how not to publicize cigars. That would be
no way to lift sales from the five and one-half billion
of 1940 to the eight billion of 1920.

HE curtain has been rung down on the To-
bacco Industry's Foremost Annual Event

last week's convention of the N. A. T. D. The
term "foremost" in this instance has very
special significance because I believe it is generally
granted that the Ninth Convention of the N. A. T. D.
outranked all others in every respect and was the most
outstanding event in the annals of the tobacco indus-
try.

It is the consensus of opinion that in addition to
being a superb industrial accomplishment the Conven-
tion also achieved a number of notable objectives •

s. President and Treasurer; B. S. Phillips, Vice-President; John Cleary.

a year.

-nuadelphia, Pa. Issued monthly SubscrintJo^. o^oJUki- i . .u ~ • — -* """p*. vice- i-resiaent; John Cleary,

(a) It made a constructive contribution to-
ward the elevation of the merchandising stand-
ards of the distributors and other divisions of the
industry by graphically demonstrating and por-
traying through the Model Distributing House the
most up-to-date methods of business conduct.

(b) It succeeded in clarfying a vast number
of perplexing issues which confront the distrib-
utors and all other divisions of the industry;

(c) It has engendered and instilled a broader
concept of the peculiar factors which affect the
composite units of our industry and which should
manifest itself in a closer relationship between all
those engaged directly or indirectly in this fine
industry.

The attendance eclipsed all former records. What
particularly pleased us, who had been responsible for
the sponsorship and administration of the convention
program, is the great number of new faces we have
been privileged to see at Chicago. Try as one may,
to, personally, meet and exchange a few words with
each and everyone who attended this great event, it
nmst be recognized that it is impossible to do so at
a conclave of such magnitude and scope.

May I, therefore, avail myself of the generosity
of the trade paper columns by extending the heartfelt
gratitude of the membership of the N. A. T. D., its
Officers and Directors, and especially myself, for the
enthusiastic cooperation extended by virtually every-
one. Without such wholesome and enthusiastic coop-
eration the Convention could not have attained the
historic importance which it did. It was, I believe, in
every way a genuine tribute to the character of the
personnel of the Tobacco Industry and Allied Trades.

As you must have surmised, the foregoing edi-
torial was written by Joseph Kolodny, whose princi-
pal address at the convention begins on the opposite
page.

CANADIAN CROP SHARPLY REDUCED

The Canadian tobacco crop of 1940 is now placed
at 60,300,000 pounds against 107,700,000 pounds pro-
duced in 1939, the Office of Foreign Agricultural Re-
lations said in its publication, Foreign Crops and Mar-
kets. Flue-cured leaf accounted for about 65 per cent,
of the 1940 crop, against about 75 per cent, flue-cured
in 1939. Lower yields on a sharply reduced acreage
made the 1940 crop the smallest since 1936.

The smaller 1940 crop reverses the upward trend
in Canadian tobacco production. The industry was
encouraged by preferential tariff treatments in the
British market, which before the war absorbed over
90 per cent, of the Canadian crop. That market, how-
ever, is now closed to both Canadian and United States
tobacco.

Negotiations are now under way for the sale of
Canadian tobacco to Austraha (6,000,000 pounds) and
to New Zealand. Nearly all of the flue-cured crop has
been sold, chiefly to Canadian manufacturers. Prices
for cash sales of the Ontario flue-cured crop averaged
one-half cent more than the negotiated minimum price
of 20.5 Canadian cents per pound. A preliminary esti-
mate places the gross farm value of the 1940 Canadian
tobacco crop at about $10,400,000 or $9,000,000 (Ca-
nadian) less than last year.

Big Bill Fisher, stellar center on the University
of Tampa football team, and Miss Renee La Montague,
a student, depict a scene in the Indian Village con-
tained within the Tampa Cigar Show. Both are
dressed in authentic Indian costumes, but made en-
tirely of especially hand-made cigars. Over 9000 ci-
gars are contained in these costumes. The first In-
dian tent in the foreground is made of especially
treated cigar tobacco leaves.

REYNOLDS ADDS STATIONS

The R. J. Reynolds Tobacco Company has added
five stations for its *^The Grand Ole' Opry" program
giving it a network of forty-three stations. Program
is produced in the interest of Prince Albert Tobacco.
William Esty & Co., Inc., is the agency.

SEVEN DANCE ORCHESTRAS

Seven of the nation's outstanding dance orches-
tras have been signed for guest appearances on the
Lucky Strike program, **Your Hit Parade'' during
the portion of the Columbia Network program orig-
inating each Saturday night from the nation's mili-
tary training centers. Sponsored by the American
Tobacco Company for Lucky Strike Cigarettes, this
program is heard over 104 CBS stations, Saturdays
at 9-9:45 P. M., rebroadcast at 12-12:45 A. M.

The Tobacco World

Tobacco Jobber Is Indispensable

By Joseph Kolodny
Executive Secretary NATD

WO years ago, at the 1939 NATD convention,
the members instructed the officers to under-
take a thorough and comprehensive survey of
the entire wholesale tobacco trade. The pur-
pose of this survey was to determine precisely what
service the tobacco distributor performed, how much
this service costs, and, in general, to evaluate the
wholesaler.

Up to that time apparently no one had more than
a hazy conception of how well or how badly the dis-
tributor was doing his job. Our first object was to
gather authentic statistics concerning the operations
of all tobacco wholesalers in each of the 84 trading
areas of the United States. These facts and figures
were necessary to determine whether the wholesaler is
a major unit in the machinery of distribution or, as
claimed by many armchair economists, merely a para-
site who adds unnecessary expense to the operation of
getting the goods from the manufacturer to the con-
sumer.

To assemble and collate all these data required
many months of careful preparation, canvassing,
checking and rechecking.

Just a year ago, in this very room, a preliminary
report was submitted to the members, with a promise
that the investigation would continue and that an all-
embracing picture of the entire tobacco distributing
trade would be presented to this convention. Before
revealing the statistical details of this survey, may we
presume to express our view in the controversy still
raging concerning the importance of the distributor in
our economic system.

The figures forcefully substantiate our basic argu-
ment, that the tobacco distributor is an indispensable
link in the industrial chain and that considering his
meagre compensation he renders an astonishingly effi-
cient service.

The proof of the wholesaler's value is so conclu-
sive and incontrovertible that the question insistentlv
suggests itself: *^What prompts the sinister attacks
on the distributor and who is responsible for them?''

In this connection, compare the distributor's prob-
lem and his technique of operation with those of the
manufacturer. Do the slurs cast on the distributor
imply that the manufacturer is ultra efficient and is
capable of performing all of the economic functions
necessary to bring the processed raw material to the
ultimate consumer?

. J^^n a manufacturing corporation, at the end of
Its tiscai year, reports unsatisfactorv earnings to its
stockholders, it is customary to ascribe the disappoint-
mg results to adverse general conditions, economic or
political difficulties, lack of consumer purchasing power
and other unfavorable factors. Is it ever possible, per-
haps, that the lack of profits may be due to inefficient
operation or incompetent management? On the other
nand, would anv stockholder or group of investors con-
tinue to finance a manufacturing plant from which the
avpr?l"7 |«.a« infinitesimal as that received bv the
average distributor of consumers ' goods ?

Dro J!!w ^'''^ t^iose— and among them occasionallv a
prominent economist-who, from time to time, voice

Pcbniary, ig^j

the opinion that the elimination of the middleman and
the substitution of direct sales from manufacturer to
consumer would reduce the cost of goods to the con-
sumer. We know, of course, that this is a ridiculous
fallacy. To refute it, all we need do is to refer to the
ledgers of manufacturers who now market their prod-

ll/>re tiMffiO^ '^O 'flirk T'O'^oi lrkr» A/rfi-tol -H m. ■»-•■»»/-» o ctV»/^-»»-» •» *t « •»->

i*\^iiK} \^A.L\j\jv \j\j ixA\_/ X o t/C4xxv/x . ^xv/iiu.ct'X xj^Ltxof? oja^w XIX cixx

overwhelming majority of cases that the least expen-
sive method of distribution is provided by the whole-
saler and that, in his absence, the cost of goods to the
consumer is actually higher rather than lower.

At our last convention, we had occasion to refer
to a special survey conducted by one of the most repu-
table research organizations, the Twentieth Century
Fund. That organization of statistical experts pub-
lished a book called, **Does Distribution Cost Too
Much?" This volume presented an impartial and un-
biased analysis of the functions of the distributor, his
place in the economic sphere, and the arguments, pro
and con, on the question whether the elimination of the
wholesaler would help or handicap the public.

Consider for a moment, just a few of the pertinent
observations made in this cold, matter-of-fact dissec-
tion of the distributor. It was declared unequivocally
as the conclusion of mature study that the hypothesis
that the wholesaler merely adds another and an unnec-
essary transaction in the sale of goods is utterly false.
If anything, the Twentieth Century Fund reports, the
wholesaler materially reduces the number of transac-
tions.

Assume for the sake of argument, that in an area
of 100 retailers there is no wholesaler. Each of the
hundred retailers must himself prepare and send his
orders for goods to each of the several factories pro-
ducing the merchandise he needs. Again, assume that
ten factories manufacture these products. For these
orders to be filled, on each occasion of stock replen-
ishment by the retailer, ten factories w^ould each have
to ship 100 parcels making an aggregate of 1000 par-
cels to that single area. And how often every month
would those thousand parcels have to be duplicated?
How absurd and fantastic this would be, having regard
for the details of assembling these multifarious orders,
checking them, invoicing them, collecting the accounts
and the dozen other steps involved in the shipment of
goods ! And we have considered onlv the burden on
the manufacturer without taking into account the hard-
ship to the retailer and the additional demands on the
agencies of transportation.

Assume, on the other hand, that these 100 retailers
send their order to one wholesale house which ware-
houses the products of each of the ten manufacturers.
In that case each of the ten manufacturers has made a
single shipment to the wholesaler, and the wholesaler
has sent only 100 parcels to the 100 retailers. Thus
the number of parcels has been reduced by 90 per cent
with a huge saving in the labor and shipping cost.

(Here Mr. Kolodny disclosed two charts which
graphically backed his contention.)

Nothing could prove more clearly how complex
and intricate the transfer of goods from the manufac-

(Conf'mned on Page 8)

December Marked by Substantial Gains

Increases Were Registered in Every
Classification of Tobacco Products
With Exception of Large Cigarettes

VERY classification of tobacco products, with
the single exception of large cigarettes, regis-
tered an increase in December, 1940, over the

1 QQQ or»r1 +Vin o*Qi"na T*or»nrn/1

ocixxiv/

■»v>

XXX

xxi<x-i yjA.

from 1.95 per cent, for chewing and smoking tobacco
to 39.43 per cent, for little cigars. Those are the high-
lights of December withdrawals for consumption, as
reported in the Supplement to the Tobacco Barometer
of the Tobacco Merchants Association of the United
States.

All classes of cigars in the U. S. totaled 349,779,-
880, as compared with 331,203,629, an advance of
18,576,251, or 5.61 per cent. Philippine Islands with-
drawals totaled 11,202,255, as compared with 7,659,694,
a rise of 3,542,561, and Puerto Rico withdrawals
totaled 367,600, as compared with 276,000, for a gain
of 91,600. Grand total was 361,349,735, as compared
with 339,139,323, an increase of 22,210,412, or 6.55 per
cent.

Class A cigars in the U. S. totaled 307,698,830,
as compared with 291,256,225, a gain of 16,442,605, or
5.65 per cent. P. I. cigars went up 3,564,090, from
7,634,695 to 11,198,775, and P. R. cigars rose 76,850,
from 67,200 to 154,050. Class A total was 319,051,665,
as compared with 298,958,120, an increase of 20,093,545,
or 5.65 per cent.

Product December, 1940

Cigars :

Class A —

United States 307,698,830 +

Philippine Islands ... 11,198,785 -f-

Puerto Rico 154,050 -|-

Total 319,051,665 +

Class B —

United States 3,529,750 —

Philippine Islands . . . 970 —

Puerto Rico 67,050 -|-

Total 3,597,770 —

Class C —

United States 35,690,600 -|-

Philippine Islands . . . 2,290 —

Puerto Rico 144,400 —

Total ~ 35,837,290 +

Class D —

United States 2,481,894 +

Philippine Islands ... 140 -f

Puerto Rico 2,100 -f-

Total 2,484,134 +

Class E —

United States 378,806 —

Philippine Islands ... 70 +

Puerto Rico

Total 378,876 —

6

Increase or
Quantity

16,442,605

3,564,090

86,850

Decrease
Per Cent.

5.65

■ • • •

20,093,545

6.72

339,250

4,060

19,800

8.77

• * • •

• • • •

323,510

8.25

2,212,832
17,644
16,65.0

6.61

• • • •

• • • •

2,178,538

6.47

309,236

115

1,600

14.23

• • • •
» • • •

310,951

14.31

49,172
60

11.49

■ • • •
• • • •

Class B cigars in the U. S. totaled 3,529,750, as
compared with 3,869,000, a drop of 339,250, or 8.77
per cent. This was reduced to 323,510, or 8.25 per
cent., bv a P. R. gain of 19,800, more than overcoming
a P. I. loss of 4060.

Class C cigars in the U. S. totaled 35,690,600, as
compared with 33,477,768, an increase of 2,212,832, or
6.61 per cent., which gain was lowered to 2,178,538, or
6.47 per cent., by a P. I. loss of 17,644 and a P. R. loss
of 16,650.

Class D cigars in the U. S. totaled 2,841,894, as
compared with 2,172,658, a gain of 309,236, which was
slightly raised to 310,951, or 14.31 per cent., by a P. I.
gain of 115 and a P. R. gain of 1600.

Class E cigars in the U. S. totaled 378,806, as
compared with 427,978, a drop of 49,172, or 11.49 per
cent.

Cigarettes in the U. S. totaled 13,814,602,886, as
compared with 12,802,800,103, an increase of 1,011,802,
or 7.9 per cent.

Little cigars gained 3,057,213, or 39.43 per cent.;
large cigarettes declined 64,376, or 24.44 per cent.;
snuff rose 290,555 pounds, or 9.79 per cent.; chewing
and smoking tobacco gained 411,113 pounds.

Following are the comparative figures :

49,112

11.48

Product December, 1940

Total All Classes:

United States 349,779,880 +

Philippine Islands ... 11,202,255 +

Puerto Rico 367,600 +

Grand Total 361,349,735 +

Little Cigars:

United States 10,810,213 +

Philippine Islands ...

Puerto Rico

Total 10,810,213 +

Cigarettes:

United States 13,814,602,886 +

Philippine Islands . . . 39,052 -f-

Puerto Rico 121,995 —

Total 13,814,763,933 +

Large Cigarettes:

United States 199,024 —

Philippine Islands ...

Puerto Rico 4,985

Total 204,009 —

Snuflf (lbs.):

All United Stales ..; 3,258,973 -f

Tobacco (Chewing and
Smoking) lbs. :

United States 21,499,435 +

Philippine Islands ... 2 -f

Total 21,499,437 +

Increase or Decrease
Quantity Per Cent.

18,576,251

3,542,561

91,600

5.61

22,210,412

6.55

3,057,213

• •••••

39.43

• • • •

3,057,213

39.43

1,011,802,783

18,652

493,005

7.90

• • • •

1,011,328,430

7.90

64,376

200

35,815

24.44

• • • •

• • • •

100,391

32.98

290,555

9.79

411,113
2

1.95

• • • •

Cigarettes Set All-Time High in 1940

Cigars, Chewing and Smoking Tobacco
Register Slight Gains; Snuff, Little
Cigars and Large Cigarettes Decline

NE hundred eighty billion, six hundred sixty-
six million, two hundred forty-seven thousand,
eight hundred nine cigarettes were withdrawn

the

for cuiisuiiiptioii in 1940,

LU

accuruiiig

Supplement to the Tobacco Barometer of the Tobacco
Merchants Association of the United States. Of the
total, 326,452 were P. I. withdrawals and 3,133,495 were
P. R. withdrawals. All the rest were U. S.

Cigars of all classes in the U. S. totaled 5,355,408,-
619, as compared with 5,311,393,887, an increase of
44,014,732, or 0.83 per cent. P. I. withdrawals totaled
210,488,633, as compared with 196,825,331, a gain of
13,663,302, or 6.94 per cent. P. R. withdrawals totaled
1,687,150, as compared with 1,746,640, a loss of 59,490,
or 3.41 per cent. Grand total was 5,567,584,402, as
compared with 5,509,965,858, a gain of 57,618,544, or
1.05 per cent.

Class A cigars in the U. S. totaled 4,780,193,445,
as compared with 4,745,622,345, an increase of 34,571,-
100, or 0.73 per cent. P. I. withdrawals went up
13,559,745, or 6.92 per cent., from 196,049,005 to
209,608,750. P. R. withdrawals went down 207,540,
from 1,072,040 to 864,500. Class A total was 4,990,666,-
695, as compared with 4,942,743,390, a gain of 47,923,-
305, or 0.97 per cent.

411,115 1.95

The Tobacco World

Calendar

Product Year 1940

Cigars :
Class A —

United States 4,780,193,445 -|-

Philippine Islands ... 209,608,750 +

Puerto Rico 864,500 —

Total 4,990,666,695 +

Class B —

United States 41,729,948

Philippine Islands . . . 130,129 +

Puerto Rico 281,200 +

Total 42,141,277 —

Class C —

United States 492,484,968 +

Philippine Islands ... 304,508 —

Puerto Rico 539,350 +

Total 493,328,826 +

Class D—

United States 36,924,869 +

Phihppine Islands ... 77 571 __

Puerto Rico 2^100 —

'T^tal ■; 37,004,540 +

Class E—

United States 4,075.389 -

puerRico^^'":^^.•;; ''':''' +

"^^^^^ 4,443,064 —

February, ig^j

Increase or Decrease
Quantity Per Cent.

34,571,100

13,559,745

207,540

0.73
6.92

47,923,305

0.97

714,577
33,905
37,050

1.68

• • • •

• ■ • •

643,622

1.50

9,356,912

56,046

111,600

1.94

• ■ a •

9,412,466

1.95

1,260,430

194,165

600

3.53

• • • •

1,065,665

2.97

459,133
319,863

10.13

• • • •

Class B cigars in the U. S. totaled 41,729,948, as
compared with 42,444,525, a decline of 714,577, or 1.68
per cent. P. I. and P. R. gains of 33,905 and 37,050,
resDectivelv reduced this class loss to 643 622 or 1 ^
per cent.

Class C cigars in the U. S. totaled 492,484,968, as
compared with 483,128,056, a gain of 9,356,912, or 1.94
per cent. A P. R. gain of 111,600, overcoming a P. I.
loss of 56,046, raised the class gain to 9,412,466, or
1.95 per cent.

Class D cigars in the U. S. totaled 36,924,869, as
compared with 35,664,439, a rise of 1,260,430, or 3.53
per cent., which was reduced to 1,065,665, or 2.97 per
cent., by P. I. and P. R. losses of 194,165 and 600, re-
spectively.

Class E cigars in the U. S. totaled 4,075,389, as
compared with 4,534,522, a decline of 459,133, or 10.13
per cent. P. I. withdrawals, however, went up 319,863,
from 47,812 to 367,675, so that the net loss in this class
was 139,270, or 3.04 per cent.

The gain in cigarettes amounted to 8,193,189,865,
or 4.75 per cent.

Large cigarettes declined 33.85 per cent.; little
cigars, 13.94 per cent. ; snuff, 0.37 per cent. ; chewing
and smoking tobacco gained 0.51 per cent.

Following are the comparative figures:

139,270

3.04

Calendar Increase or Decrease

Product Year 1940 Quantity Per Cent.

Total All Classes:

United States 5,355,408,619 + 44,014,732 0.83

Philippine Islands ... 210,488,633 -f 13,663,302 6.94

Puerto Rico 1,687,150 — 59,490 3.41

Grand Total 5,567,584,402 + 57,618,544 ToS

Little Cigars:

United States 135,348,155 — 21,928,579 13.94

Philippine Islands ...

Puerto Rico

Total 135,348,155 — 21,928,579 13.94

Cigarettes :

United States 180,662,787,772 + 8,196,250,425 4.75

Philippine Islands ... 326,542 — 906 425

Puerto Rico 3,133,495 — 2,154435 '.'.'.'.

Total 180,666,247,809 + 8,193,189,865 475

Large Cigarettes:

United States . 1,689,449 — 903,587 34.85

Philippine Islands . . . 3,755 + 3 434

Puerto Rico 168,585 — 52,'515 .'.".';

Total 1,861,789 - 952,668 "ssTs

Snuflf (lbs.):

All United States ... 37,875,059 — 142,277 0.37

Tobacco (Chewing and
Smoking) lbs. :

United States 304,320,494 + 1,543,166 0 51

Philippine Islands ... 59 — 506

. Total..... ■; 304,320.553 + 1,542,660 ""Tsi

T

BRIGGS

POPULAR LEADERS

By P. Lorillard Co.

UNION

LEADER

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Zip-Top

FRIENDS
FOIL POCKET
POUCH \0i

BEECH-NUT

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5i

VAN

BIBBER

5 for 10^

ROCKY FORD
2 for 5^

SENSATION
20 for 10^

BETWKN THE ACTS
15^ pkg. of ten

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BETUN. AROMATIZER. BOX FLAVORS, PASTE SWEETENERS

FRIES & BRO., 92 Reade Street, New York

aCAR BOXES

TeL Alcem^slB MSa

<«ttbUihe4 tm

TOBACCO JOBBER IS INDISPENSABLE

{Continued from Page 5)

turer to the retailer would become if the services of the
wholesaler were lacking.

The service tobacco distributor warehouses and
sells a complete variety of tobacco products and allied
merchandise. In some instances the variety of items
carried numbers several thousand. Because of the
availability of the wholesaler, the retailer, and through
him the consumer, is assured of a steady and uninter-
rupted supply of merchandise of every description.

A^nnfhpr vital "nhasf* f^^ fViia prnVilptyi ia o-F+pn rvTTnri

looked. If the economic life of the nation is to be kept
healthy, it is essential that the output of its factories
finds its way to the market with as little waste as pos-
sible. Here the function of the wholesaler again be-
comes of inestimable value. In every country there are
periods of financial crisis. Often the economic cause
of such crises is traced to overproduction. In these
emergencies the wholesaler acts as a cushion and a
balance wheel for the regulation and very often the
absorption of the producer 's overproduction.

In the tobacco industry specifically, one can easy
visualize the chaos and disruption that would follow if
producers were required to regulate their manufactur-
ing in accordance with the irregular and fickle require-
ments of more than 950,000 retailers. The ludicrous-
ness of such a situation hardly needs to be elaborated.
Nevertheless, let us delve further. Let our imagina-
tions run wild and assume that a federal law has been
enacted prohibiting the wholesale business on the
ground that the wholesaler does not perform a useful
function and is a leech on society. Wliat would occur?
The consumer must be provided with his daily necessi-
ties and luxuries ; otherwise the nation ceases to pro-
gress. This progress is measured in terms of the com-
forts which the citizens have a right to expect and
demand. Consider, then, the alternatives :

A. The State would have to establish its own dis-
tributing points and such a system would inevitably be
entangled by all the bad features which attend political
experiments.

B. Groups of competing manufacturers would
have to pool their resources and establish their own
wholesale and retail outlets. Imagine the dilemma of
the poor clerk who would have to try to serve with
equal faithfulness each of the competing cigarette com-
panies !

C. Since the retailer, as well as the wholesaler, is
a middleman, the same process of reasoning would
eliminate him, too. Then each manufacturer would
have to sell his output directly to the consumer. Try
to visualize thousands of manufacturers and their tens
of thousands of salesmen canvassing and soliciting
orders from more than 130,000,000 consumers I

Within the general framework of our industry we
have (a) cigarette and tobacco manufacturers, (b)

{Continued on Page 12)

The sure test of a GOOD GIFT is that it must please and there is no other gift that pleases a

inan more than a box of Manila cigars that's why fastidious men and women who wish to

please their loved ones prefer Manila cigars that come in various and exquisite holiday wrappings.

You, Mr. Dealer, be ready for the holiday rush by buying your supply of Manilas now.

For particulara about Manilas write to

THE PHILIPPINE TOBACCO AGENCY

2362 Mauachutetts Avenue, N. W., Wathington, D. C.

1

The Tobacco World

ANOTHER BIG ADVANTAGE FOR YOU IN

'M

ySi

M

w

Jul

THE SMOKE'S

THE THING

THE SMOKE OF SLOWER-BURNING CAMELS GIVES YOU

EXTRA MILDNESS, EXTRA COOLNESS,

EXTRA FLAVOR -AND

% LESS

NICOTINE

than the average of the 4 other largest-selling

brands tested— less than any of them— according to

independent laboratory tests of the smoke itself

FOR many a year your taste and
your tongue told you there was
something distinctive about Camels
. . . something you just couldn't
seem to find in any other cigarette.
Then scientific research told you
Camels were slower-burning. You
learned that this slower way of
burning meant more mildness,
more coolness, and more flavor.

Now, new tests — tests of the
smoke itself— con&rtn still another
advantage of Camel's slower burn-

ing: Less nicotine in the smoke. Less
than any of the four other largest-
selling brands tested — 28% less
than the average!

And when independent labora-
tory tests reveal such a distinct ad-
vantage for oife brand of cigarettes
over all the others tested— that's
worth your looking into— right now!

Try the slower-burning cigarette
... try Camels. Compare them . . .
compare them by smoking them.
The smoke's the thing!

R. J. Reynolds Tobacco Company, Winaton-Salem, North Carolina

"SMOKING OUT" THE FACTS about nicotine.
Experts, chemists analyze the smoke of 5 of the
largest-selling brands . . . find that the smoke
of slower-burning Camels contains less nico-
tine than the average of the other brands tested!

BY BURNING 25% SLOWER than the average of the 4 other largest-
selling brands tested — slower than any of them — Camels also give you a
smoking plus equal, on the average, to 5 EXTRA SMOKES PER PACKI

CAMEL

THE SLOWER-BURNING

CIGARETTE

1-3255B Magazines ^

February, jp^j

Prepare for
Action!

£1 Producto is hard work's best friend. And
hard-working men are your best prospects for
quality business. Let them have their choice
of shapes and sizes.

Give El Producto a good case line-up and
watch your high grade sales grow.

ELPMICrO

AVERAGE PRICES HIGHER THAN LAST

SEASON

ITH the exception of wrappers and choice leaf,
practically all grades of Middle Belt flue-cured
tobacco sold this season for higher average
prices than last season, report the United
States Agricultural Marketing Service, North Caro-
lina Department of Agriculture, and Virginia Division
of Markets. Common to fine leaf was from 75 cents
to $3 a hundred higher; smoking leaf grades gained
from $1.75 to $4.50 a hundred ; cutters and lugs from
75 cents to $6. Good to choice primings showed in-
creases from $4 to $7.50 a hundred; low and fair prim-
ings were up from $1.50 to $5, and nondescript grades
advanced 50 to 75 cents a hundred. Lemon colored
grades were in good demand and showed larger in-
creases than any of the other colors.

The largest gains in prices that were recorded
occurred chiefly in the good to choice qualities, which
composed about 23 per cent, of the sales. In the com-
mon to fair qualities and nondescript tobaccos— which
composed the bulk of the crop— the increases were
smaller. This accounts for the fact that the general
average was only $1.13 a hundred higher than last
season.

The 1940 marketing season began on September
17, with prices for the first week of sales from $3 to
$7 a hundred higher than opening week last season.
Prices continued to advance each week thereafter until
the fifth week, and were the highest of the season dur-
ing the third and fourth weeks. A slight decrease
occurred in the fifth week. At the end of the sixth

10

week, prices had dropped sharply and continued to de-
cline until the ninth week, when they rose slightly.
Prices were fairly steady after the ninth week until the
last two weeks, when they again declined and reached
the lowest level of the season. Prices during the last
two weeks were, in most instances, from $1 to $3 a
hundred lower than opening week.

The 1940 producers' sales on the ten Middle Belt
markets, which included South Hill, Virginia,
amounted to 107,019,141 pounds, and averaged $16.72
a hundred. Last year's producers' sales on the same
markets were 159,601,029 pounds, at an average of
$15.59 a hundred.

The tobacco sold consisted principally of common
to fair leaf, fair to fine lugs and a large percentage
of nondescript tobaccos. Leaf predominated the offer-
ings. The percentage of smoking leaf was much
smaller this year than last year. The percentage of
cutters increased substantially, but composed a very
small portion of the crop. About the same percentage
of primings was offered this year as last year.

In the extreme northern section of the belt favor-
able weather conditions prevailed throughout the
growing season and the quality of the tobacco was far
superior to last season. In other sections of the belt,
however, unfavorable weather during part of the grow-
ing and harvesting season reduced both the yield and
the quality. All Middle Belt markets were closed for
the season by December 17.

TTTJ.

MARKETING QUOTAS SET

Secretary of Agriculture Claude R. Wickard has
announced the final and official results of the three ref-
erendums held November 23, 1940, on marketing
quotas for Burley, dark air-cured, and fire-cured types
of tobacco.

As a result of the votes, the Secretary has pro-
claimed that marketing quotas will be in effect for
these types of tobacco during the three marketing
years beginning on October 1 of 1941, 1942 and 1943.
The proclamation also puts in effect the quotas for
the first of the three marketing years, 1941-42, which,
were officially established before the referendums.

In each of the referendums the proposal of a
three-year marketing quota period received more than
the two-thirds majority required to put the quotas into
effect. The votes by types were distributed as fol-
lows :

Burley tobacco: Of the 145,089 Burley growers
who voted, 111,045 or 76.5 per cent, were in favor of
the quota proclaimed for the marketing year beginning
October 1, 1941 and also in favor of having market-
ing quotas in effect for the three marketing years be-
ginning on that date. Approximately 3.1 per cent, or
4,521 votes, favored a marketing quota limited to the
marketing year beginning next October 1. The re-
maining 29,523 votes, or 20.4 per cent, of the total,
opposed both the three-year proposal and the one-year
quota.

Dark air-cured tobacco: About 84.2 per cent, or
8,910 of the total of 10,578 votes cast in the dark air-
cured tobacco referendum favored the quota pro-
claimed for the marketing year beginning October 1,
^\v f^^^ favored having marketing quotas in
ettect tor the three marketing years beginning on that
date. Approximately 2.2 per cent., or 235 votes, fa-
vored a quota limited to the marketing year beginning

(Continued on Page 12)

The Tobacco World

tABLE-

aA j

fact

NGl

CO,]

Mr. Dealer:

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plam
el'save these valuable coupons for cash or

one of the seventy luxury premiums.

the

UNION MAD!

7UNI IM "Paul Sullivan R«=v.ews tne
New8'\..everynightexcepisaiu.u-;-..-
Sunday... CBS coast to-cc

tUNKIST JUICI IXTIACTOR .

600 coupons. Ask the B & W salesman
for a supply of catalogs showing all
the premiums you can save for.

LOANS ON 1940 BURLEY

The Commodity Credit Corporation will make
loans on 1940 Burley tobacco through farmer cooper-
ative associations, it was announced by the Depart-
ment of Agriculture. The program will go into effect
immediately with authorization for loans totaling not
more than $6,000,000 on not to exceed 30 million
pounds of tobacco. The rate will vary for different
grades and will not exceed 75 per cent, of the parity
for the grade. The loans will be payable on demand
not later than October 1, 1943. Loans will be avail-
able only to growers participating in the AAA Farm
Program.

Department officials said the loan is being made
to strengthen current market prices and to enable
growers to carry over some of their grades of tobacco
for which prices now are unusually low, and for which
improvement of prices is likely when the present sur-
plus supply is eliminated. Officials pointed out that
the loan program is approved with the understanding
that acreage allotments under the marketing quota
programs will be reduced 10 per cent, in 1942 and 1943
if the reduction is needed.

Approximately 96 per cent, of the Burley crop
produced is consumed in the United States, and 60 per
cent, of the total production is used in the cigarette
industry. With rising consumption in cigarettes and
the three-year jirogram of production adjustment
through marketing quotas, it is believed the Burley
tobacco supply can be established in line with market
demands.

Commenting on the loan program and the general
Burley situation. Department officials stated that the
unsatisfactory price situation which caused growers
to ask for a loan program has resulted mainly from
the surplus supply of Burlev tobacco which came from
the large crops marketed in 1937 and 1939 when mar-
keting quotas were not in effect. The depressing effect
of this surplus upon prices was made worse this year
by (1) the loss of export markets for about 4 per
cent, of the crop as a result of the war; (2) the pro-
duction of a 1940 crop in excess of consumption as a
result of extremely high yields per acre; and (3) a
larger than normal proportion of certain grades in
the crop as a result of unusual weather conditions.

On the better leaf grades, a few of the better tip
grades and a small number of the best lug or cutter
grades, market prices to date for the 1940 crop have
been re atively low, and on these grades the advances
unaer the loan program would be near the prices now
being paid on the market.

February, ig^j

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

TESSE A. BLOCH, Wheeling, W. Va President

WILLIAM BEST, New York, N. Y , Chairman Executive Committee

GEORGE W. HILL, New York, N. Y Vice-President

GEORGE H. HUMMEL, New York, N. Y Vice-President

S. CLAY WILLIAMS, Winston-Salem, N. C Vice-President

JULIUS LICHTENSTEIN, New York, N. Y 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

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

HENRY J. PINNEY, Worcester, Mass President

EDMUND C. DEARSTYNE. Albany, N. Y Vice-President

J. RENZ EDWARDS, Kansas City, Kan Treasurer

JOSEPH KOLODNY, 200 Fifth Ave., New York, N. Y Secretary

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LASCrtOW. 862 East Fifteenth St., Brooklyn, N. Y President

R. L. McCORMICK. 52 Klein Ave., Trenton, N. J First Vice-President

J. J. OLLENDORFF. 780 West End Ave.. New York. N. Y. ..Executive Secretary
ALBERT FREEMAN, 25 West Broadway, N^w York. N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

ERIC CALAMIA, 233 Broadway, New York, N. Y President

JOHN MAUTE Vice-President

CLIFFORD M. DAWSON Treasurer

MALCOLM L. FLEISCHER Secretary

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA,
INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA President

THOMAS C. BREEN Treasurer

SAMUEL BLUMBERG General Counsel

Executive Committee— Alvaro M. Garcia (Ex-officio), Thomas C. Breen, Harley W.

JeflFerson, D, Emil Klein, Walter E. Popper, Harry C. Carr, and Arthur A.

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion, Pa President

T. E. BROOKS, Red Lion, Pa Vice-President

ARTHUR S. ZIEGLER, Red Lion. Pa Treasurer

RUSSELL S. STINE, Red Lion, Pa Secretary

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

JOSE P. PEREZ, Tampa, Fla President

ARMANDO RODRIGUEZ, Tampa, Fla Vice-President

JOHN LEVY, Tampa, Fla Treasurer

FRANCIS M. SACK, Tampa, Fla Secretary

INDEPENDENT RETAIL TOBACCONISTS'

ASSOCIATION

BERNARD SCHWARZ President

SSIi% ^h^}^}A .i First Vice-President

BENJ. FRIEDMAN Second Vice-President

JOSEPH GROSSMAN Third Vice-President

ARTHUR W. JONES Financial Secretary

LOUIS GROSSMAN Treasurer

BERNARD BERNSTEIN, 42 Broadway, New York, N. Y '....Secretary

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC.

•I9^^F^T^^¥e^Jl^x^N President

TACK EDELSTEIN Treasurer

LEO RIEDERS. 3800 Broadway, New York, N. Y V.V.V.V.V.V. '.Secretary

Internal Revenue Collections for December
Source of Revenue 1940

Cigars $ 867,016.58

Cigarettes 44,906,154.31

Snuff

Tobacco, cliewing and smoking
Cigarette papers and tubes . . .
Leaf dealer penalties

586,615.07

3,871,299.51

100,307.26

720.37

1939

$ 811,626.07

38,410,375.21

534,315.35

3,796,191.14

149,528.42

85.00

II

John H. Swisher

Carl S. Swisher

Jno. H. Swislier was elevated to the position of
chairman of the board of directors of Jno. H. Swisher
& Son, Inc., and Carl S. Swisher to the presidency of
the company during a directors ' meeting following the
annual stockholders^ meeting on January 8th.

Other changes among the officers of the company
were: H. K. Smith, former treasurer, elected vice-
president, and L. D. Hupp, assistant sales manager,
elected treasurer. H. B. Coulter continues as sec-
retary.

Directors of the company consist of the above-
named officers and Oeorge S. Coulter, attorney, Conrad
J. Gunti, office manager, and Herbert H. Swisher. Mr.
Gunti is a new member of the board.

The directors created the chairmanship of the
board as a new office. The elder Mr. Swisher was
elected to fill it after having served as president of
the company since its incorporation in 1926. Carl S.
Swisher had been vice-president since the year of in-
corporation.

The 80-year-old company, originally an Ohio con-
cern, went to Jacksonville in 1926. Founded in 1861,
it was the Swisher Cigar Company until 1888, when
it became Swisher Brothers. In 1912 the company's
name was changed to Jno. H. Swisher & Son with Carl
S. Swisher as his father's junior partner.

The Swisher company is Florida's largest manu-
facturing industry, employing more than 2600 workers.
Its product, the King Edward cigar, is one of the
world's largest selHng cigars.

MARKETING QUOTAS SET

(Continued from Page 10)

next October 1. The remaining 1,433 votes, or 13.6
per cent, of the total, were cast against both the three-
year proposal and the one-year quota.

Fire-cured tobacco: Of the 23,296 fire-cured to-
bacco growers voting, 20,109, or 86.3 per cent., favored
the quota proclaimed for the marketing year begin-
ning October 1, 1941 and the proposal of having mar-
keting quotas in effect for the three marketing years
beginning on that date. About 2.1 per cent, or 490
growers favored a marketing quota limited to the 1941-
42 marketing year. The remaining 2,697 votes, 11.6
per cent, of the total, opposed both the three-year pro-
posal and the one-year quota.

12

TOBACCO JOBBER IS INDISPENSABLE

(Continued from Page 8)

cigar manufacturers, (c) manufacturers of pipes and
smokers' articles, (d) candy manufacturers, and (e)
producers of matches, razor blades and hundreds of
sundry items.

Obviously, if there were no wholesalers, each of
these producers would have to multiply its present
sales force many times. This could not be accom-
plished— certainly not by the large cigarette manufac-
turers— merely by expanding the staffs of their mis-

sjnnaT^v mpn Thev mio'lif pmnlo'*'^ «nrkroTifir>Ac (\-r lnoyT>

ers to do consumer sampling or to put up window
posters, but they would have to have trained and sea-
soned salesmen to solicit orders, judge a customer's
credit and collect bills when due. The cost of employ-
ing the huge staff of salesmen necessary in every terri-
tory would be prohibitive.

The tremendous increase in payroll of its sales
department would constitute only a fragment of the
total extra cost the manufacturer would have to assume
if he were unable to obtain the services of wholesalers.
He would have to provide warehousing and receiving
and shipping facilities, maintain delivery trucks, em-
ploy a staff of bookkeepers and stock clerks and assume
his own losses or bad debts and a considerable number
of miscellaneous items of expense.

Consider, too, the spot the poor retailer would be
in. At present he customarily buys practically all of
his merchandise from a few wholesalers. If he had to
purchase his requirements from each manufacturer
separately, think of the bookkeeping mess in which he
wold find himself. Besides, he would have a constant
stream of salesmen calling on him from morning till
night. Some retailers would have more visits from
salesmen than from customers.

To add a final horror to this nightmare, who would
pay the overwhelming extra cost of getting goods to
the consumer in such an inefficient and haphazard
manner? The public, of course !

There is still another important phase of this
issue. What about the manufacturer of a new product?
How is he to find outlets for his goods ? Are initiative
and creative genius to be totally paralyzed? Are our
markets to be rendered static so"^ that the consumer can
have access only to established products? Few seem
to realize that the task and function of the distributor
IS not merely to satisfy an existing demand, but also
to create a demand for new products.

^ We may therefore dismiss as utterlv w^ithout foun-
dation any contention that the wholesaler does not
render a vital and essential service. You may liquidate
or dispense with the wholesaler but you cannot dis-
pense with his functions, with what he actually does.

Consider now the cost to the public of the whole-
sale distributor's service. A survey of profits by a
nationally known agency discloses that the net profits
of wholesale grocers is 1.3 per cent, on sales ; wholesale
confectioners 2.2 per cent., and wholesale dry goods
merchants 2.7 per cent. We shall show in the statisti-
cal matter attached to this report the profit of the to-
bacco distributor is much smaller— it is indeed an infin-
itesimally small percentage of his sales volume. The
figures which we have compiled are based on an actual
study of each of the eighty-four trading areas. They
reveal an amazing phenomenon. Thev show that, ex-
cept m extraordinary instances, the wholesale tobacco
distributor is not able to recoup even the actual cost of

The Tobacco World

^-

MODEL TOBACCO OFFERS

for your en{oyment and profit

"PIPE SMOKING TIME"

Coost to Coast Every Monday Night

on Columbia Broadcasting System

handling the popular brands of cigarettes and what is
still more astonishing, that these constitute about 70
per cent, of his annual sales turnover. Although the
wholesaler turns over his stock approximately twenty
times a year, he is obliged under duress to market cig-
arettes as an actual *'loss leader."

Distributors of tobacco products have a combined
capital investment of more than $200,000,000. They
employ more than 18,000 salesmen and operate in
excess of 40,500 delivery trucks and salesmen's cars.
In servicing more than 950,000 retail tobacco outlets,
these distributors have earned the right to have ap-
plied to them the words engraved on many of our post
offices : ^ ^ Neither rain, nor hail, nor sleet, nor snow, nor
gloom of night shall stay these couriers from the swift
completion of their appointed rounds." In rendering
this essential distribution, delivery and credit service
to this vast army of retailers, tobacco distributors, by
reason of rigidly economical operation, are able to
restrict their cost of doing business to from 5 to 6 per
cent, of sales. Nevertheless their net profits can
scarcely be seen w4th a microscope.

A study made by N. A. T. D.'s confidential agency
of several hundred financial statements discloses that
in a great majority of instances distributors are barely
able to keep in the black. Red ink is used extensively
in the compilation of these statements. Even those
which show a profit rarely exceed one-half of one per
cent. net. Wholesalers' salesmen average between
$25 and $35 a week. In a great many cases the earn-
ings of the proprietors or managers do not greatly
exceed the salary of a salesman. Many of these state-
ments reveal that even distributors who do an impres-
sive annual volume in excess of three or four million
dollars draw only modest salaries, ranging from five to
ten thousand dollars a year. This certainly does not
indicate any profiteering or bleeding of the business.

(Concluded next month)

AMERICAN TOBACCO RENEWS

HT F^^^ American Tobacco Company has renewed
Intormation Please" for thirteen weeks effective
f ^bruary 14. Program is heard Fridays from 8 :30
to y J:^ M., over a 116 station nationwide hook up in
the interest of Lucky Strike Cigarettes. Lord &
1 nomas is the agency.

Pebruary, ig^j

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter
It's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 67 years
15 Washington St. Newark, N. J.

EsiablishcJ 1886

"BEST OF THE BEST"

^^^^^±^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West. Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, III.
Detroit, Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling, W. Va.

13

H

Tobacco Merchants' Association
Registration Bureau,

341 Madison Ave.
NEW YORK CITY

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A— An allowance of $2 will be made to members of Ute Tobacco Mer-
chants' Association on each registration.

Note B— It 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

FIVE TWENTY FOUR:-^t6,823. For all tobacco products. Reg-
istered by Faber, Coe & Gregg of Penna., Inc., Pittsburgh, Pa., on
January 13, 1941.

EVZON :— 46,824. For all tobacco products. Registered by Nike
D. Giannakis, Chicago, 111., on December 13, 1940.

TRANSFERRED REGISTRATIONS.

NICKLEBY:— 3,440 (Tobacco Leaf). For cigars. Registered Jan-
uary 11, 1889, by Oblinger Bros. & Co., Lancaster, Pa. Through
mesne transfers acquired by G. H. P. Cigar Co., Philadelphia, Pa.,
and re-transferred to G. H. P. Cigar Co., Inc., a Maryland corpora-
tion, Philadelphia, Pa., on December 28, 1940.

NICHOLAS NICKLEBY:— 4,464 (Tobacco Leaf). For cigars.
Registered January 21, 1890, by ObUnger Bros. & Co., Lancaster,
Pa. Through mesne transfers acquired by G. H. P. Cigar Co., Phil-
adelphia, Pa., and re-transferred to G. H. P. Cigar Co., Inc., a Mary-
land corporation, Philadelphia, Pa., on December 28, 1940.

DAKEM: — 21,366 (Tobacco World). For cigars, cigarettes and che-
roots, and 36,261 (United Registration Bureau for the Tobacco In-
dustries). For cigars. Registered January 10, 1911, and January
16, 1911, respectively, by Benj. L. Grabosky, Philadelphia, Pa.
Transferred to G. H. P. Cigar Co., Philadelphia, Pa., and re-trans-
ferred to G. H. P. Cigar Co., Inc., a Maryland corporation, Phila-
delphia, Pa., on December 28, 1940.

G. H. P.: — 21,612 (Tobacco World). For cigars, cigarettes and che-
roots. Registered February 13, 1911, by B. L. Grabosky, Philadel-
phia, Pa Transferred to G. H. P. Cigar Co., Philadelphia, Pa., and
re-transferred to G. H. P. Cigar Co., Inc., a Maryland corporation,
Philadelphia, Pa., on December 28, 1940.

SHELMO: — 21,659 (Tobacco World). For cigars. Registered Feb-

r"^7 1^' i^^h- ^y ^A ^- Grabosky, Philadelphia, Pa. Transferred

n T^'^'X- ^'^^^ T •' Philadelphia, Pa., and re-transferred to

^- P- Cigar Co Inc., a Maryland corporation, Philadelphia, Pa.,

on December 28, 1940.

SEDLO:--21 660 (Tobacco World). For cigars. Registered Feb-
I"^'/ u' i^^h- ^y ^r^ ^- Grabosky, Philadelphia, Pa. Transferred
n ^'^'X' ^'P'" T^°' PhiJadelphia, Pa., and re-transferred to
on Deremebr''28;''i94r' ^ ^^'^^^"^ corporation, Philadelphia, Pa.,

ASTICOT:-21,731 (Tobacco World). For cigars, cigarettes and

?h'LTf-V^'r%'^ ^f^'"";^ ^J' ^91^' »^y Ben. L^ Grabosky,
Philadelphia Pa Transferred to G H. P. Cigar Co., Philadelphia

nnr.Zt 'vuTa'\^'u-'^ S" ^' ^^^ ^'?^' ^°' I"^' ^ Maryland cor^
^■S^'^i^i?Il'^^^^^^^^Ph'^' Pa* on December 28, 1940
GERONDO:— 21,733 (Tobacco World). For cigars, cigarettes and

Philadelphia, Pa. Transferred to G. H. P. Cigar Co. Philadelohia

Pa., and re-transferred to G. H. P. Cigar Co., Inc a Marvllnd cor '

c^T^^'A^ilr^T^U^^'^^^^^Phia, Pa., on December 28, 1940 ' ^^'^^^"^ "°'-

SOLANDRA:-21,730 (Tobacco World). For cigars, cigarettes and

^I'MTfuH^*'^"''"^ February 23, 1911, by Benj. L^ GrabLkv

Philadelphia, Pa Transferred to G. H. P Cigar Co PhnadelDhia'

Pa., and re-transferred to G. H. P. Cigar Co., Inc. a Mar via n^^^^^^

rrS™?iP''^^^'Phia, Pa., on December 28, 1940 ^^'^'^"^ '^"■

CASERINA:-21,736 (Tobacco World). Fo^ cigars cigarettes and

PhSf-.-^'l'''^'"^^ ^^'"'''7 23, 1911, by len : L^ Grabosky
Philadelphia, Pa. Transferred to G. H. P. Cigar Co Phifadelohia'
Pa., and re-transferred to G. H. P Ci^ar Co Inr ^ mJ^I?JWa '

VTTr'^?"T ^'^^^.l^i?^'^' P-' -" DeceXr 28; 940. "^^'"^ '°"

VINCELLO>--2 ,732 (Tobacco World). Foi^ cigars cigarettes and

cheroots. Registered February 23 1911 bv Ben,' 1 Crlu 1

Philadelphia. Pa Transferred 'to g'. H p'. cU'co PhHafet'

Pa., and re-transferred to G. H P Cijrar Co Tnr a A/To? , J^ '

VT^iS^r'ii?"T Philadelphia, Pa., on December 28,' 194o' ''"^^'"^ '°"

^TnH^^^-^^*"!.^'^^^ ^^"'*^d Registration Bureau for the Tobacco

Industries). For cigars, cigarettes and tobacco. Registered March

14

14, 1911, by The G. H. P. Cigar Co., Philadelphia, Pa. Transferred
to G. H. P. Cigar Co., Inc., a Maryland corporation, Philadelphia
Pa., on December 28, 1940.
GLADISTA: — 21,734 (Tobacco World). For cigars, cigarettes and
cheroots. Registered February 23, 1911, by Benj. L. Grabosky
Philadelphia, Pa. Transferred to G. H. P. Cigar Co., Philadelphia
Pa., and re-transferred to G. H. P. Cigar Co., Inc., a Maryland cor-
poration, Philadelphia, Pa., on December 28, 1940.
GLADISTA:— 36,453 (United Registration Bureau for the Tobacco
Industries). For cigars, cigarettes and tobacco. Registered March
3, 1911, by G. H. P. Cigar Co., Philadelphia, Pa. Transferred to
G. H. P. Cigar Co., Inc., a Maryland corporation, Philadelphia. Pa
on December 28, 1940.
GOODINA:— 36,465 (United Registration Bureau for the Tobacco
Industries). For cigars, cigarettes and tobacco. Registered March
17, 1911, by the G. H. P. Cigar Co., Philadelphia, Pa. Transferred
to G. H. P. Cigar Co., Inc., a Maryland corporation, Philadelphia
Pa., on December 28, 1940. '

COL-MEX:-^24.238 (Toharro World). For cigars, cigarettes che-
roots, stogies, chewing and smoking tobacco. ° Registered April"!
1912, by G. H. P. Cigar Co., Philadelphia, Pa. Transferred to
G. H. P. Cigar Co., Inc., a Maryland corporation, Philadelphia. Pa
on December 28, 1940. '

LITTLE CHUCK:— 24,364 (Tobacco World). For cigars, ciga-
rettes, cheroots, stogies, chewing and smoking tobacco. Registered
May 1, 1912, by G. H. P. Cigar Co., Philadelphia, Pa. Transferred
to G. H. P. Cigar Co., Inc., a Maryland corporation, Philadelphia
Pa., on December 28, 1940. ^ '

ROITRAY:— 24,363 (Tobacco World). For cigars, cigarettes, che-
roots, stogies, chewing and smoking tobacco. Registered May 1
l^^h ^yj^-^-^- C^S^ar Co., Philadelphia, Pa. Transferred to
G. H. P. Cigar Co., Inc., a Maryland corporation, Philadelphia. Pa
on December 28, 1940. h , i- d.,

RONDACK:— 24,395 (Tobacco World). For cigars, cigarettes, che-
roots, stogies, chewing and smoking tobacco. Registered May 8

l?^h S^^^'^V?- ^'^^' ^°' Philadelphia, Pa. Transferred to
G. i± P. Cigar Co., Inc., a Maryland corporation, Philadelphia Pa
on December 28, 1940. '

RUTHANOID:— 24,380 (Tobacco World). For cigars, cigarettes
^ i^nf^^^V^**'^'^^' chewing and smoking tobacco. Registered May
? 1?^d' ^^ ^- ?• P-r ^''^''''' ^°' Philadelphia, Pa. Transferred to
Lr. H. P. Cigar Co., Inc., a Maryland corporation, Philadelphia. Pa
on December 28, 1940.

EL PROJECTO:— 30,159 (Trade-Mark Record). For cigars ciga-
rettes and tobacco. Registered July 20, 1904, by George Schlegel,
New York, N. Y Transferred to G. H. P. Cigar Co., Philadelphia
Pa., and re-transferred to G. H. P. Cigar Co., Inc., a Maryland cor-
poration, Philadelphia, Pa., on December 28, 1940

MANSMOKE:— 24,406 (Tobacco World). For cigars cigarettes
?i ""im o ' u *^??^tV ^i^^'."^ ^"d smoking tobacco. Registered May
J.1'^912, by G.H.P Cigar Co., Philadelphia, Pa. Transferred to

on Decenibfr 28 l^io""' ^ ^^''^^^^"^ corporation, Philadelphia, Pa.,
THE SCHWARTZ:— 27,054 (Tobacco World). For cigars ciga-
rettes cheroots, stogies, chewing and smoking tobacco. Registered
. ?^ m' o ^?^-^^ ^^^- f' ^'^''' ^°' Philadelphia, Pa. Transferred
Po rT' l^^ oo\n'?^' ^ Maryland corporation, Philadelphia,

Pa., on December 28, 1940.

EL PRODUCTO:-3^969 (Tobacco Leaf). For cigars. Registered
August 7, 1889, by Oblinger Bros., Lancaster, Pa. Through mesne
transfers acquired by G. H. P. Cigar Co., Philadelphia, Pa, and re-

Vhu'Jrr^ %^-"-^- ^'^r C°' I"^' ^ Maryland corporation.
Philadelphia, Pa., on December 28, 1940 f .

EL PRODUCTO:-203,569 and 11,326 (United States Patent Office),
tor cigars Registered September 22, 1925, and November 13, 1928,
r M P r^- ^l?^'",<^0' ^"c., Philadelphia, Pa. Transferred to
on Decenib!r'"28,''l940.''' ^ ^^'^'^""^ corporation. Philadelphia, Pa.,

*Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue based

on manufacturers' returns of production)

Month of October

r>,^ J, . Increase or Decrease

Product 1940 Quantity Per Cent.

IZL 4,194,890 _ 174,703 4.00

Twist 536,246 4- 17 864 3 45

Hne-cut Chewing 443,166 + 69*699 1866

Scrap Chewing 4,009,057 -f 181*677 475

S'"^^'"^ 21.949,933 + 2,290,225 11.65

'^^*^^ 31,133,292 -I- 2,384,762 8.30

Ten Months Ending October 31

r)_^j„^. ,^, Increase or Decrease

^^°^"^* 1940 Quantity Per Cent.

T"f,t ^^4^5'112 - 2,739,459 6.24

iwist ...;...; 4,702,687 — 66 659 140

Fine-cut Chewing 3,935 533 + HO 622 2 89

Scrap Chewing 35,909 942 I 975 923 279

S"^^^"^^ 172,244,425 + 1,879,724 1.10

^""^^^ •• 257,927,706 -f 160,151 "~a06

uut\\*nuMFlZ^/-^''!r figures are in pounds, and are subject to revision
Revenue '" ^ '^^^'^ °^ '^' Commissioner of Internal

The Tobacco World

1941

▲

ESTABLISHED
1881

1941 LAUNCHED WITH
SUBSTANTIAL GAINS

Starting off with gains in withdrawals
of every classification of tobacco prod-
ucts, except large cigarettes, the year
1941 gives promise of improvement grat-
ifying to all departments of the industry.

During January the following in-
creases in U. S. withdrawals were regis-
tered: Cigars of all classes, 3.89 per cent,
with all types included in the rise, ex-
cept Class B; little cigars, 21.65 per
cent; cigarettes, 11.8 per cent snuff, 6.49
per cent; chewing and smoking tobacco,
8.53 per cent. The decline in large ciga-
rettes was 37.04 per cent.

a

Sam De George

CHAMPION FLY AND BASS
FISHERMAN OF ALABAMA

Copyright 19 il, Liggett & Mvers Tobacco Co.

HoBART B. Han KINS — Editor

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

MARCH, 1941

No. 3

S iJioduction continues to grow, so will the con-
sumption of tobacco, for variations in con-
sumption per capita are closely correlated
with changes in business activity, although
consumption of tobacco products does not vary as
greatly as does industrial production. It does not ex-
perience such sharp declines during depression years,
nor does it increase as greatly in periods of recovery.
Domestic consumption of tobacco products as a whole
continues to increase. Increases in tax-paid withdraw-
als of cigarettes are particularly notable, and cigar
withdrawals also have increased. Snuff withdrawals
show little change. Manufactures of smoking tobacco
are increasing, as are those of all chewing tobacco
products except plug.

HE export situation for flue-cured leaf contin-
ues to be marked by the sharp curtailment of
exports to the United Kingdom, formerly by
far the largest purchaser of this type. Not
only is the present situation unfavorable; it is also
highly uncertain. Exports are low largely because of
economic and military difficulties of many importing
countries. As these constraining circumstances change
from month to month, exports may either increase
sharply or decrease further. The United Kingdom
continues to manufacture largely out of stock and to
husband her existing stocks by limiting withdrawals
to 90 per cent, of those during the 12 months ending
March 31, 1940. In November it was estimated that
stocks in the United Kingdom exceeded 16 months ' re-
quirement. Not only have imports from the United
States been sharply curtailed, but no tobacco is being
taken from Canada, a British Empire country. Early
m January it was reported that there arrived in the
United Kingdom the first of a consignment of Turkish
and Greek tobacco which will be used in the creation
of new British blends.

JNDICATED flue-cured production in the Orient
is lower than previously estimated, but higher
_ than that of last year. Major obstacles at

i ni.' *^^^ ^™^ *^ increased United States exports
to China, second largest importer of United States flue-
cured, are continued exchange difficulties and trade re-
strictions. Australia, third largest user of United
states Hue-cured, is limiting imports from non-sterling
countries. Arrangements are reportedly being made
tor the purchase of six million pounds of Canadian
nue-cured by Australia. Warehouse sales reports cov-
ering United States flue-cured show producers' sales
by January 1 of 714,000,000 pounds, or more than 97
per cent, of the 1940 crop of 734,000,000 pounds as esti-
mated December 1. Sales of scrap tobacco outside the
auction channels have not yet been reported. In the
previous marketing season these were estimated at

35,000,000 to 40,000,000 pounds. The average price
received by growers was 16.85 cents per pound up to
January 1, and, with the bulk of the crop already sold,
the season 's average price will not differ notably from
that figure. By that date growers had received more
than $120,000,000. During the same period the year
before, 1,064,000,000 pounds, or about 95 per cent, of
the record 1939 crop had been sold at an average price
of 15.4 cents, bringing returns to growers of $163,-
000,000. With a considerably smaller crop selling at
only slightly higher prices, it is evident that demand
was poorer.

HE 1940 crop was obtained with the aid of a
record yield of 980 pounds per acre. This
compares with a yield of 900 pounds per acre
in 1939, a former record of 928 pounds in 1935,
and a 1929-38 average of 780 pounds. Record high
yields were obtained in nearly all sections. Weather
conditions on the whole, though unfavorable to quality,
were favorable to the production of heavy-bodied to-
bacco in portions of the districts. Early cold which
retarded the crop was followed later by drought in
some sections, and in others by prolonged heat and
floods. The use of better land, increased fertiUzation,
and the best cultivating practices contributed to the
final result.

HE area harvested was estimated at 749,000
acres as of December 1. This was only slightly
below the Agricultural Adjustment Adminis-.
tration allotment of about 760,000 acres, indi-
cating that earlier hopes for substantial voluntary re-
duction were not entirely realized. The flue-cured
marketing quota for 1941 has been set at 618,000,000
pounds, without allowance for small farms. After ad-
justment, the conversion of this marketing quota to
an acreage basis will result in a total of about 770,000
acres. The tobacco grown on the allotted acreage will
become the marketing quota for each farm. This acre-
age IS slightly higher than that harvested in 1940 but

Inon ^ ^^ P^** ^^^^*- ^^ ^^^^^ planted to flue-cured in
1939, and about 85 per cent, of the 1938 acreage At
average yields for the five years 1936-40, the acreage
allotted would produce 678 million pounds ; with this
year's record yield a crop of 755 million pounds would
result. The Commodity Credit Corporation was again
active, purchasing types commonly exported throuo-h
export companies and lending to domestic dealers who
customarily export to countries now out of the mar-
ket because of the war. The corporation has completed

nn/nn^'^'*'''".^ ^^ ^^^ ^^^^ ^^^P' Approximately 200,-
000,000 pounds have been removed from the market
about 165,000,000 by purchase through export com-
panies and about 34,000,000 through loans to domestic
$40 OOOOOof financial commitments will total about

January Withdrawals Register Gains

Increases All Along the Line in U. S.
Withdrawals, with the Two Exceptions
of Class B Cigars and Large Cigarettes

LUS signs far outnumber the minus signs in the
report of January withdrawals for consump-
tion, as wiil be evident by a glance at the fig-
ures furnished in the Supplement to the To-
bacco Barometer of the Tobacco Merchants Associa-
tion of the United States. In fact, there were gains
all along the line in U. S. withdrawals, except in Class
B cigars and large cigarettes; in Philippine Island
withdrawals, except in Class A cigars and cigarettes;
in Puerto Rico withdrawals, except in large cigarettes,
A month of progress.

All classes of cigars in the U. S. totaled 403,166,-
320, as compared to 388,084,997, an increase of 15,081,-
323, or 3.89 per cent. Philippine Island withdrawals
totaled 8,238,745, as compared to 12,113,125, a decline
of 3,874,380, or 31.98 per cent. Puerto Rico withdraw-
als totaled 50,000, as compared to 32,950, a gain of
17,050. Grand total of all classes reached 411,455,065,
as compared to 400,231,072, a rise of 11,223,993, or 2.8
per cent.

Class A cigars in the U. S. totaled 374,664,970, as
compared to 361,032,300, an increase of 13,632,670, or
3.78 per cent. A P. I. drop of 3,919,060, or 32.39 per
cent., from 12,099,450 to 8,180,390, and a 2450 P. R.
gain served to reduce the class increase to 9,716,060,
or 2.6 per cent.

Class B cigars in the U. S. totaled 1,861,193, as
compared to 1,878,857, a drop of 17,664, or 0.94 per

c-fciit. xxixcs luoa Yvao oOItcIicci lu Dto-i, oi kj.w± pci Cciii.

by a P. I. gain of 7030 and a P. R. gain of 4150.

Class C cigars in the U. S. totaled 24,882,962, as
compared to 23,724,288, a rise of 1,158,674, or 4.88 per
cent. P. I. withdrawals increased 26,350 and P. R.
withdrawals increased 10,450, so that the total gain
for the class was 1,195,474, or 5.04 per cent.

Class D cigars in the U. S. totaled 1,605,425, as
compared to 1,327,875, an increase of 277,550, or 20.9
per cent. By the addition of the P. I. gain of 8700,
this became a total increase of 286,250, or 21.54 per
cent.

Class E cigars in the U. S. totaled 151,770, as com-
pared to 121,677, a gain of 30,093, or 24.73 per cent.

Cigarettes altogether totaled 16,286,898,470, as
compared to 14,567,645,850, an increase of 1,719,252,-
620, or 11.8 per cent.

Little cigars totaled 13,019,200, a gain of 21.65 per
cent. ; snuff, 3,422,102 pounds, a gain of 6.49 per cent. ;
chewing and smoking, 25,536,138, a gain of 8.53 per
cent. Large cigarettes alone lost — 37.04 per cent.

Following are the comparative figures :

Nearly All Tobacco Products Ahead

Only Large Cigarettes Fail to Share
in Increases in Total Withdrawals
in First Seven Months of Fiscal Year

N the first seven montlis of the industry's 1940-
41 fiscal vear, all classes of tobacco products
are ahead of the previous year's withdrawals,
with the single exception of large cigarettes, it
is revealed in the report embodied in the Supplement
to the Tobacco Barometer of the Tobacco Merchants
Association of the United States. The increases range
from 1.45 per cent, for snuff to 9.04 per cent, for little

cigars.

All classes of cigars in the U. S. totaled 3,267,-
692,151, as compared to 3,190,821,583, an increase of
76,870,568, or 2.41 per cent. Philippine Island with-
drawals totaled 109,922,181, as compared to 122,551,-
202, a loss of 12,629,021, or 10.31 per cent. Puerto
Rico withdrawals totaled 1,202,450, as compared to
1,226,450, a loss of 24,000, or 1.96 per cent. Grand
total was 3,378,816,782, as compared to 3,314,599,235,
a rise of 64,217,547, or 1.94 per cent.

Class A cigars in the U, S. totaled 2,899,117,055,
as compared to 2,830,197,895, a gain of 68,919,160, or
2.44 per cent. P. I. withdrawals declined 12,727,470,
or 10.43 per cent., and P. R. withdrawals dropped 119,-
450, bringing the net gain for the class down to 56,-
072,240, or 1.9 per cent.

Class B cigars in the U. S. totaled 25,539,890, as
compared to 25,998,473, a loss of 458,583, or 1.76 per

cent., too much to be overcome by a P. I. gain of 21,898
and a P. R. gain of 28,500, which only served to re-
duce the class loss to 408,185, or 1.56 per cent.

Class C cigars in the U. S. totaled 315,784,014, as
compared to 308,408,162, an increase of 7,375,852, or
2.39 per cent. P. I. and P. R. gains of 9392 and 67,050,
respectively, raised the class gain to 7,452,294, or 2.41
per cent.

Class D cigars in the U. S. totaled 24,328,382, as
compared to 22,956,155, a gain of 1,372,227, or 5.98 per
cent., which was reduced to a gain of 1,204,702, or 5.2
per cent., by P. I. and P. R. drops of 167,425 and 100,
respectively.

Class E cigars in the U. S. totaled 2,922,810, as
compared to 3,260,898, a loss of 338,088, or 10.37 per
cent., which was reduced to 103,504, or 3.14 per cent, by
a P. I. increase of 234,584.

Grand total of cigarettes was 107,540,865,010, as
compared to 102,839,823,334, an increase of 4,702,453,-
149, or 4.57 per cent.

Other gains were as follows : Little cigars, 7,417,-
131, or 9.04 per cent.; snuff, 313,905 pounds, or 1.45
per cent.; chewing and smoking tobacco, 4,255,957
pounds, or 2.39 per cent. Large cigarettes showed a
loss of 779,871, or 42.96 per cent.

Following are the comparative figures:

Product January, 1941
Cigars :

Class A —

United States 374,664,970 -|-

Philippine Islands ... 8,180,390 —

Puerto Rico 22,450 +

Total 382,867,810 +

Class B —

United States 1,861,193 —

Philippine Islands ... 11,770 +

Puerto Rico 11,500 +

Total 1,884,463 —

Class C —

United States 24,882,962 +

Philippine Islands . . . 34,485 +

Puerto Rico 16,050 +

Total 24,933,497 +

Class D —

United States 1,605,425 +

Philippine Islands . . . 9,500 +

Puerto Rico

Total 1,614,925 +

Class E —

United States 151,770 +

Philippine Islands . . . 2,600 +

Puerto Rico

Total 154,370 +

Increase or Decrease
Quantity Per Cent.

13,632,670

3,919,060

2,450

3.78
32.39

9,716,060

2.60

17,664
7,030
4,150

0.94

• ■ • •

6,484

0.34

1,158,674
26,350
10,450

4.88

• • • •

1,195,474

5.04

277,550
8,700

20.90

• • • •

286,250

21.54

30,093
2,600

24.73

■ • • a
• • • a

32,693

26.87

Product January, 1941

Total All Classes:

United States 403,166,320

Philippine Islands . . . 8,238,745

Puerto Rico 50,000

Grand Total 411,455,065

Little Cigars:

United States 13,019,200

Philippine Islands ...

Puerto Rico

Total 13,019,200

Cigarettes:

United States 16,286,811,310

Philippine Islands . . . 27,900

Puerto Rico 59,260

Total 16,286,898,470

Large Cigarettes:

United States 131,875

Philippine Islands ...

Puerto Rico 10,000

Total 141,875

SnuflF(lbs.):

All United States ... 3,422,102

Tobacco (Chewing and
Smoking) lbs.:

United States 25,536,138

Philippine Islands ...

Total ~ 25,536,138

Increase or Decrease
Quantity Per Cent.

+
+

15,081,323

3,874,380

17,050

3.89
31.98

4-

11.223.993
2.316.693

• •••••

2.83

+

21.65

• • • •

+

2,316,693

1,719,219,860
26,500
59.260

1,719,252,620
73,475

Yo,666

83,475
208,604

2,007,658

21.65

+

11.80

* • • *

+

11.80
35.78

• • a •
a • • •

—

37.04

+

6.49

+

8.53

• « • *

+

2,007,658

8.53

4

The Tobacco World

1st 7 Months Increase or Decrease

Product Fiscal Yr. 1941 Quantity Per Cent.
Cigars :
Class A —

United States 2,899,117.055 + 68.919.160 2.44

Philippine Islands ... 109.254.375 — 12,727.470 10.43

Puerto Rico 633.850 — 119,450

Total 3,009,005,280 + 56,072,240 1.90

Class B —

United States 25,539,890 — 458,583 1.76

Philippine Islands ... 105,609 + 21,898

Puerto Rico 182,000 + 28,500

Total 25,827,499 — 408.185 1.56

Class C —

United States 315,784,014 + 7.375,852 2.39

Philippine Islands . . . 232,827 -f 9,392

Puerto Rico 384,500 + 67.050

Total 316,401.341 + 7.452,294 2.41

Class D —

United States 24,328,382 + 1,372,227 5.98

Philippine Islands ... 60,645 — 167,425

Puerto Rico 2,100 — 100

Total 24,391.127 + 1.204,702 520

Class E—

United States 2,922,810 — 338,088 10.37

Philippine Islands ... 268,725 + 234.584

Puerto Rico

Total 3,191,535 — 103,504 3.14

March, 1^41

1st 7 Months

Product Fiscal Yr. 1941

Total All Classes:

United States 3,267,692.151 +

Philippine Islands ... 109.922.181 —

Puerto Rico 1.202.450 —

Grand Total 3,378,816,782 +

Little Cigars:

United States 89,496,172 +

Philippine Islands ...

Puerto Rico

Total 89,496,172 +

Cigarettes:

United States 107,539,312,443 +

Philippine Islands ... 225,792 —

Puerto Rico 1,326,775 —

Total 107,540,865,010 +

Large Cigarettes:

United States 936,962 —

Philippine Islands . . . 780 +

Puerto Rico 97,785 —

Total 1,035,527 —

Snuff (lbs.):

All United States ... 21,972.034 +

Tobacco (Chewing and
Smoking) lbs.:

United States 181,968,911 +

Philippine Islands ... 12 -f-

Total 181,968,923 +

Increase or Decrease
Quantity Per Cent.

76,870,568

12,629,021

24,000

2.41

10.31

1.96

64,217.547

1.94

7,417.131

9.04

7,417,131

9.04

4,702,453,149
485,448
926,025

4.57

4,701.041,676

4.57

717,236

580

63,215

43.36
39.26

779,871

42.96

313,905

1.45

4,255,952

5

2.39

• • a a

4,255,957

2.39

HENRY J. PINNEY

ENRY J. PINNEY, who served two terms, in
1939 and 1940, as president of the National
Association of Tobacco Distributors, died in
City Hospital, Worcester, Mass., on Sunday,
February 9th, after a brief illness, which was culmi-
nated by a heart attack. He was 61. He was president
of H. E. Shaw Co., Worcester, one of the largest whole-
sale tobacco concerns in the United States, and also of
the New Haven Tobacco Co., New Haven, Conn. The
Shaw organization also operates a branch at Spring-
field, Mass.

Mr. Pinney attended the recent convention of the
N. A. T. D. at Chicago and apparently enjoyed the best
of health. He became ill on February 2d and pneu-
monia developed.

Many members of the tobacco industry, including
a number of directors of the N. A. T. D., attended the
funeral services which were held on Tuesday, February
11th, from the Pinney residence, at 7 Kensington
Heights, Worcester.

In a letter to the N. A. T. D. directors notifying
them of Mr. Pinney 's passing, Joseph Kolodny, execu-
tive secretary, said : **No one is in a better position than
I to know and understand how deeply Henry Pinney
was devoted to the N. A. T. D. and what splendid services
he rendered to the association. He was of a modest and
retiring disposition and never sought special credit for
anything he did, but I can assure you that the officers
and directors can justifiably feel proud of having been
associated with Mr. Pinney in the work of our associa-
tion. I know you all join me in feeling the deepest
regret and sorrow at his untimely passing.''

Henry Pinney entered the employ of the H. E.
Shaw Co. in 1895 at the age of 15. In that year H. E.
Shaw and T. S. Swain were partners in a small retail
tobacco store in Worcester. Henry's brother, Richard
C. Pinney, also entered the business in 1901, and in
1905 Henry was appointed manager. The late H. E.
Shaw admitted Mr. Pinney to partnership in 1910, and
three years later the firm was incorporated, Mr. Pinney
becoming the principal stockholder.

In the beginning the business employed only a few
persons, but under Mr. Pinney 's skillful management
it was developed to one of the largest wholesale tobacco
organizations in the United States, todav employ-
ing 250.

He was born in South Manchester, Conn., March 4,
1879, and was educated at Stafford Springs, Conn. In
1915 he married Agnes Ash of Worcester, who survives
him, along with a son, Henry J. Pinney, Jr., 22 a stu-
dent at the Columbia University Law School in New
York, and a brother, Richard C. Pinney.

Mr. Pinney was a member of Montacute Lodge, A.
F. and A. M.; Aletheia Grotto; B. P. 0. E.; Common-
wealth Club, and the Worcester Country Club.

ILKA CHASE RENEWED

The R. J. Reynolds Tobacco Company has renewed
*' Luncheon at The Waldorf" heard over a 53-station
NBC-Blue Network, Saturdays from 1.30 to 2 P. M.,
EST, for 52 weeks, effective February 22. The pro-
gram, originating in the Empire Room of the Wal-
dorf-Astoria Hotel, features an informal luncheon with
Ilka Chase as mistress of ceremonies. Show is pro-
duced in the interest of Camel Cigarettes and Prince
Albert Tobacco. William Esty & Co., Inc., is the
agency.

GENERAL CIGAR EARNINGS

The 1940 report of the General Cigar Co. shows net
earnings of $1,369,488, or $2.15 per share on common
stock, compared with $879,248 or $1.12 per share on
common stock for 1939.

Current assets are $22,331,275 and current liabili-
ties $1,139,658. Current assets include cash amounting
to $3,639,602 and government bonds carried on the
books at $1,591,687, though current market value is
$1,649,062. Inventories amount to $15,324,564. Total
assets are $25,143,675.

Earnings statement includes earnings of its wholly
owned subsidiary, the General Cigar Co. of Cuba, ar-
rived at after deduction of depreciation, amortization,
Federal and Cuban income taxes, etc., and after divi-
dend requirements on the company's 7 per cent, pre-
ferred stock.

The company's net sales for the year 1940
amounted to $19,185,361. Expense of operation
amounted to $17,147,869, depreciation and amortization
to $379,272, and income taxes to $420,924. This leaves
a net $1,237,296 from operations and the company had
'* other income" amounting to $132,192, making a total
net income of $1,369,488. After payment of $350,000 in
preferred dividends and $945,964 in common dividends,
the sum of $73,524 was added to the surplus.

Seriousness of State Taxation Burdon

By Joseph Kolodny

U. S. TOBACCO PROFITS

Operating results for 1940 as announced by the
United States Tobacco Co. shows a net profit of $3,275,-
183 after depreciation, Federal income taxes and other
charges, but before non-recurring income. Including
$702,193 net refunds of Federal taxes for prior years,
and interest thereon, total net profit for 1940 was
$3,977,376, equal to $2.08 a share on 1,831,400 shares of
no par common stock, after dividend requirements on
the 7 per cent, preferred. Net profit for 1939 was
$3,396,153 or $1.76 a common share.

Net sales for 1940 totaled $18,339,202 against
$18,283,606.

The December 31, 1940, balance sheet shows cur-
rent assets of $21,141,756, including $3,821,864 cash,
$6,394,492 marketable securities, and $10,114,004 inven-
tories, while current liabilities totaled $1,302,259. At
the close of 1939, current assets amounted to $21,720,-
601 with cash of $3,718,416, marketable securities,
$6,488,299 and inventories, $10,629,717, while current
liabilities stood at $1,540,468.

LORILLARD ASSETS INCREASE

Net income of $3,853,050, after depreciation, inter-
est. Federal and State income taxes and excess profits
taxes, etc., is reported by the P. Lorillard Co. for the
vear 1940.

This is equal, after 7 per cent, j^referred dividends,
to $1.69 per share on the common stock, and compares
with $3,846,442, or $1.69 per share for the year 1939.
The company has outstanding 1,872,291 shares of com-
mon stock (par value $10), including scrip.

Current assets at the end of the vear amounted to
$51,328,209 and current liabilities amounted to $2,776,-
689 against $49,746,040 and $2,301,076, respectively, at
the end of 1939.

Total assets amount to $59,868,298, of which
$8,905,974 is in cash, $3,883,411 in accounts received,
and $38,538,825 in inventories at cost.

Preferred dividends amounting to $686,000 and
common dividends amounting to $2,246,628 were paid
by the company during the year; $920,422 was added to
the earned surplus.

The Tobacco World

EN or fifteen years ago when State taxation of
cigarettes and other tobacco products

was

I sporadic and confined to a few States, a con-
vention such as ours might have ignored or
disregarded the possibility of a tremendous spread of
this type of taxation. Today, when 26 States and sev-
eral municipalities are levying excise and ad valorem
taxes on cigarettes and other tobacco products, the
situation commands the attention and careful consid-
eration of the N. A. T. D. This is particularly true
because of the probability that other States, which are
free of tobacco imposts, may adopt similar levies in
the present or in future years. It is incumbent on us,
as a national organization, to help coordinate and unify
the activity of the industry so that we may more eifec-
tively cope with this problem. With more than half
the States already groaning under the burden of this
excessive, discriminatory and burdensome taxation,
and with more and more States casting covetous eyes
toward tobacco products as a convenient instrumen-
tality for obtaining additional revenue, not only for
emergency purposes but as a permanent source of in-
come, the question has become truly a national issue.

Recent figures show that the aggregate revenue to
these 26 States from tobacco taxes approximates the
huge sum of $100,000,000 a year. The tax collector is
able to gather in this vast amount quickly and easily
only because of the cooperation of the tobacco dis-
tributors.

There is never-ending controversy concerning the
amount of compensation to be allowed to distributors
for their services as deputy tax collectors for their re-
spective States. While distributors in some States feel
they are being accorded reasonable treatment, whole-
salers in other States are dissatisfied and even embit-
tered because they do not consider they are getting a
square deal.

It has been hinted and even openly asserted in
some quarters that tobacco distributors have pro-
moted and aided the adoption of State tobacco taxes
for the sake of the profits they counted on earning from
the discount on the tax stamps. Such suggestions are
so obviously absurd they hardly merit attention, but
they have reached our ears so often that we wish to
dispose of them once and for all by stating unequivo-
cally that the distributor did not and does not invite
the tax, want the tax or enjoy having the tax. On the
contrary, he would heartily welcome the abolition of
all state and local tobacco taxes.

If a distributor deems it fit to state his position
concerning the adequacy or inadequacy of the com-
pensation he receives for the service he renders in
affixing tax stamps, he is wholly within his rights. The
moment a State adopts the tax, it is provided immedi-
ately with a ready medium of collection with virtually
no loss to the State either in bad debts or from any
other risk incident to a business operation. When the
State extends credit, it exacts a bond. When a dis-
tributor fails to meet his obligations on the exact day
specified, he gets no more stamps. All the distributor
seeks is fair compensation for his services. Certainly
no one can take exception to that either on the basis of
law or equity.

Just how does his compliance with the State to-
oacco tax laws add to the distributor's expense? Be-

March, 1^41

fore concluding this paper, I will go into that phase of
the matter thoroughly.

But first let us summarize the present status of
the State tax situation. There are fifteen States which
impose a tax at the rate of 2 cents per package of 20
cigarettes ; eight States in which the tax is 3 cents per
package ; two States 4 cents per package and one State
5 cents per package, in addition a number of municipal-
ities, including St. Louis and Kansas City, which also
levy a tax at the rate of 2 cents per package. In al-
most every instance, the wholesaler is designated the
agent who must affix the stamps, although in some
States this responsibility is delegated to those who
make the first sale, whether wholesalers or retailers.

The rate of discount allowed to the wholesaler
varies just as widely as the tax rates. In eight States
the discount is 10 per cent. ; two States 7% per cent. ;
one State 7 per cent.; one State 6% per cent.; one
State 6 per cent.; six States 5 per cent.; one State 4
per cent. ; two States 3 per cent.

The Massachusetts cigarette tax law is adminis-
tered without the use of tax stamps and — up to the
present — with no compensation to wholesale distribu-
tors for the work entailed in accounting and collecting
the tax. It is the only State of all the twenty-six levy-
ing tobacco taxes which does not utilize the stamp sys-
tem. Tobacco distributors in the tax States who are
now accorded reasonable compensation for their work
in affixing and cancelling stamps, are naturally con-
cerned with the possibility that the Massachusetts sys-
tem may be more widely adopted. Because of this
threat, the N. A. T. D. sent a special representative to
attend the National Tobacco Tax Conference, held sev-
eral months ago in Providence, R. I. At this confer-
ence the Massachusetts Tax Administrator described
the mechanics and operation of the system, which, by
the way, he had personally originated and sponsored.
The conference — like many former ones — was attended
by representatives of the tax departments of practi-
cally all the States having tobacco tax laws. Needless
to say, they paid the closet attention to the remarks of
the Massachusetts Administrator.

We will not attempt to estimate or appraise the
possible effects of the Administrator's address. For
the sake of brevity, we will merely set forth his prin-
cipal statements. He declared that in the first year of
its operation the Massachusetts cigarette tax law had
yielded approximately $7,300,000, at a total collection
expense of only $23,457. In his State, he said, there
are approximately 35,400 retailers, distributors and
operators of vending machines who are licensed by his
department. He estimated that with the use of stamps
the cost of collection would have amounted to about one
month's revenue. When the tax was adopted, he
shrewdly asked the Legislature either to omit the use
of stamps or else appropriate $500,000 to finance the
collection of the tax. Rather than grant this large ap-
propriation, the Legislature voted as the Administra-
tor proposed, to omit the use of stamps and to require
tobacco distributors to take monthly inventory of their
cigarette stocks and pay a tax to the State at the rate
of 2 cents per package on all cigarettes sold during the
month. The speaker advanced other arguments against
stamps, asserting that they detracted from the appear-
ance of the package ; that refunds must be made for de-

stroyed or mutilated stamps, and that comiterfeiting
and illegal reuse of stamps is possible. He added that
he expected the sales tax base in Massachusetts to be
broadened to include such products as cosmetics, candy,
soft drinks, etc., where the use of stamps might not be
practical.

The Administrator went so far as to state that his
system benefited the tobacco distributor. He claimed
that prior to the law many distributors did not have
an efficient accounting system and that his department
had recommended highly satisfactory accounting plans
which were of marked aid in the distributor's business.
He also gave as a reason for not allowing compensa-
tion to the distributors the supposition that the chain
stores, who would also receive such compensation,
would probably pass it on to consumers in the form of
lower prices, and thus disrupt competitive market con-
ditions. He charged that the chain stores in Ohio re-
coup their losses on cigarettes by means of the discount
they are receiving on state tax stamps. He also de-
scribed his system of enforcement in considerable de-
tail and stressed the fact that the revenue from the
cigarette tax without the use of stamps had amounted
in the first year to $1.66 per capita.

At the conclusion of the Massachusetts Adminis-
trator's address, the Revenue Commissioner of
Georgia, who, incidentally, was chairman of the con-
ference, said that he favored the use of stamps prin-
cipally for the reason that they were valuable in trac-
ing stolen merchandise.

The delegate representing the Quebec Tax Com-
mission described the system employed in that Cana-
dian Province, where a special cigarette sales tax is
collected by the retailer from the consumer without the
use of stamps, the retailer being compensated with a
commission of only 2 per cent.

The foregoing will, we hope, convey a general idea
of the possible tendency of the Tax Commissioners of
the various States to seek to eliminate or reduce the
already small and, in many instances, inadequate com-
pensation provided to the distributor for the invaluable
service he renders to the State as a tax collector.

Without the distributor's aid, these millions upon
millions in tobacco taxes could not be efficiently col-
lected except at prohibitive expense. Yet here is
Massachusetts, one of the major States, renowned for
its principles of equality and justice, entirely ignoring
the most fundamental principle that financial loss
should not be imposed without adequate compensation.
By saddling the distributor with heavy accounting ex-
penses and at the same time completely ignoring any
provision for reasonable remuneration for services
efficiently rendered, this State has given an outstanding
example of arbitrary and confiscatory official action.
^ The State of Massachusetts in making this impo-
sition upon the distributors of Massachusetts may have
acted technically within its legal authority. The dis-
tributors of Massachusetts, as loyal citizens of the
btate, accepted its mandate and have rendered and
continue to render the collection service at a prohibi-
tive cost to themselves. But, there is another aspect
which may have been obscured or submerged. In this
day when dictatorship is so bitterly opposed by demo-
cratic nations the world over, when our own great
democracy--solely to resist dictatorship— is embark-
ing on a defense program unprecedented in scope and
cost, IS it sound policy for a State to arrogate its
power to such an extent as to exploit a handful of loval
citizens just because the citizens have no legal alterna-
tive but to do the bidding of the State?

It is highly advisable for the members of the
wholesale tobacco trade in the several tobacco tax
States to keep a ^* weather eye" on this vital situation
and to take every precaution to protect their interests.

The N. A. T. D., in this instance, as in others,
should be used as a reservoir for statistical data. Some
months ago, we sent a questionnaire to a substantial
number of distributors in tax States designed to secure
information — factual data — pertaining to the items of
additional cost involved in rendering a tax collection
service to the State.

In seeking this information we are not in any way
concerned with the cost of any individual member. We
are interested simply and solely in establishing a com-
posite figure showing the cost of affixing, cancelling and
accounting as required by the laws of the respective
States. Candidly, the number of replies was very dis-
appointing. Even in the small number received the
information was sadly incomplete. We regret that,
because of the meager amount of information at hand,'
we are in no position to submit a factual analysis of
the elements of cost and the differences of cost in the
respective States.

To sum up, we emphasize again that :

(1) The tendency to reduce, or even eliminate, the
distributor's compensation for his labor and
expense in complying with the various State
tobacco tax laws, is becoming more pro-
nounced.

(2) To offset this, the N. A. T. D. must possess
authoritative facts as to the actual cost to dis-
tributors of the work of affixing and cancelling
cigarette tax stamps, in tax States, including
the following items :

1. Salaries and Wages:

(a) Stamping;

(b) Handling cost ;

(c) Office help.

2. Social Security Taxes:

(a) Federal unemployment insurance;

(b) State unemployment insurance;

(c) Old age benefits ;

(d) Workmen's compensation insurance.

3. Depreciation on Equipment,

4. Other Expenses:

(a) Supplies;

(b) Surety bond.

5. Application of Building Overhead:

(a) Rent paid;

(b) Cost of building operation;

(c) Building Overhead for stamping de-
partment.

6. Additional Capital:

(a) Inventory of stamps ;

(b) Accounts receivable.

7. Bad Debts.

8. Executive Overhead.

(3) Fortified with that information, we shall be
able to demonstrate that the tobacco distribu-
tors cost of operation is largely increased bv
the necessity of complying with the tax laws
and that he requires a substantial discount on
ms purchases of stamps to cover such extra
cost.

(4) When you are requested to supply us with de-
tails of your own costs, which we shall ask for
very soon, for your own sake as well as that of
your fellow distributors, give us your figures
as promptly and completely as possible.

The Tobacco World

Cigars are the
most pleasurable
and economical
form of smoking.

BAYUK BULLETIN

Devoted to the
best intercttt
of the men ivho
sell eigars*

First Issued 1929

MARCH, 1941

Prepared twice a month

WANT TO INCREASE YOUR

CIGAR SALES 107. t.

307. ?

Then let the public know that you make a
specialty of fresh cigars — popular brands in
fine, fresh condition. It's such a sure way to
increase sales that the editors of the Bayuk
Bulletin are again this year offering some timely
suggestions.

For example, have several cards lettered, like
the one shown below, and put one in your win-
dow, others in various prominent places inside

your store. As a starter, cut out the card below
and paste it in your window right away.

This plan is sure-fire. It has worked for thou-
sands of cigar dealers — increased their cigar
sales 10%, 20%, as much as 30%.

And be sure you keep your stock of cigars
really fresh. Specialize on fasiselling, popular
brands. It's one of the best of all ways to in-
sure fresh cigars. Don't overload. Buy cigars

in quantities that permit a steady turn-over.

See that the air in your show cases and wall
cases stays moist. Watch your humidifiers — or
if you don't feel you can afford humidifiers, use
sponges and keep them properly moistened.

Every man wants to get his favorite cigars
Jresh. Provide fresh cigars for your customers —
see that they know it — and watch your sales
increase.

We sell

only

WE SPECIALIZE IN POPULAR BRANDS,
KEPT IN FRESH, FINE CONDITION

ready^o«..r''** *° ""'"'* ^'*"'* '"*'■' '*""-*••'»'"•' •"«• *• w"' K'«dly wnd you . card, printed .. .bov«,
^J^;^P;;i;;pmyoiir8tore. (Due to wid» interest in this advertltement, we are repeating it by reaummt!)

MAKING CIGARETTE PAPER

HE manufacture of cigarette paper, a former
monopoly of France, may become a valuable
new American industry. The war and virtual
closing of the French export market have made
it virtually imperative that America develop domestic
processing of this high-grade and specialized paper.
Fortunately, a new process has been discovered, as a
result of considerable research on the problem, which
now makes it possible to make cigarette paper from
flax fibre or flax straw. Linen rags were used exclu-
sivelv bv the French. The Ameri can-made naner has
the same high qualities as the imported brand, accord-
ing to the U. S. Bureau of Standards, which along with
the American Textile Foundation and many private
agencies, has been primarily responsible for the devel-
opment of the new process.

Important also is the fact that the domestic manu-
facture of cigarette paper from flax fibre will give con-
siderable impetus to a number of other enterprises in
this country, not the least of which is the growing of
flax. The growing of domestic flax on a large scale,
which is quite possible, is also likely to boost further
development of domestic linen manufacture.

In the last few years farmers in certain sections
have been encouraged to grow flax so that a start might
be made toward profitable development of this crop.
Such encouragement has been part of the program of
the U. S. Department of Agriculture. The Work Proj-
ects Administration also has aided in a number of
projects where States were interested in developing
flax production. In the Willamette Valley of Oregon,
the W. P. A. under the State's sponsorship, erected a
number of co-operative retting and scutching plants
for processing the flax plant.

The National Bureau of Standards, the Textile
Foundation, and many private experts worked in-
tensely before they discovered that flax straw would
make a satisfactory material for cigarette paper.

The French long pretended that the secret of their
process was a special kind of water, but the National
Bureau of Standards has found that common river
water serves the purpose just as well. All that was
actually needed to make a good cigarette paper was
plenty of white linen cuttings, of which they have an
abundance in normal times. However, both the French
and American made papers are marvels of chemistry
and paper making. They both have excellent burning
quahties, produce a white ash, and have the same
strength and fineness.

In 1939, the last normal year, American cigarette
manufacturers purchased 9000 tons of French cigarette
paper, with a total value of approximately $4,000,000.
The domestic flax for making our own paper likely will
be produced in the future by Pacific Coast States and
m the South.

The development of a satisfactory cigarette paper
has been only one objective of the National Bureau of
Standards, the Textile Foundation and the leading
writing paper companies, which have been doing an im-
mense amount of experimentation in flax fibers and
flax straw since the beginning of the first World War.

Flax, with all of its valuable by-products, is one of
the most useful products of the soil and yet one of the
most backward in the United States. For this reason
industrial and governmental forces of the United
States have been trying for several years to develop
domestic production and markets equal to those of
France, Belgium, Ireland, Russia and other countries.

10

In Colonial times domestic-grown flax was a leading
commodity known in every household.

The expert chemists of every type of paper manu-
facturing company are convinced that eventually flax
will take the place of linen rags, which now are as
scarce as linen itself, and quite expensive.

EXHIBITORS ADD PRAISE

The industry's unanimous and enthusiastic en-
dorsement of the outstandingly successful N. A. T. D.
Convention has been manifested not only by hundreds

\jjl ictteib icc/civcci at tiiu tiisouciatiuli litjfciCiqUa iters, uui

also by expressions of complete satisfaction on the
part of nearly 200 manufacturers who exhibited their
products at the convention or who otherwise partici-
pated and supported the convention activities. So
well satisfied were the exhibitors that a substantial
number have already reserved space for the 1942 con-
vention. Typical of these is the Kaywoodie Company,
which received for the second successive year the
award for having the most attractive booth.

Lee H. Singer, vice-president of the company, is
among those who were most enthusiastic in their
praise. In a letter to Secretary Joseph Kolodny of
the N. A. T. D., Mr. Singer said, ^^I thought the 1940
convention of the association was the acme of perfec-
tion, but I have had to revise my estimate inasmuch as
the 1941 convention certainly exceeded it in every re-
spect. We were highly pleased with the location of our
booth, and I wish you would 'officially' make note to
reserve for our company the same space for your 1942
convention. Incidentally, I have set my heart on win-
ning next year's prize for the most attractive booth in
order to make it three in a row. I realize tliat this
will not be an easy task inasnmch as the quality of the
manufacturers' exhibits at each of your succeeding
conventions shows vast improvement. Nevertheless
the Kaywoodie Company will exert its best efforts in
1942 to deserve a further award for the attractive-
ness of its exhibit".

CIGARETTE SALES TO P. R.

Sales of U. S. made cigarettes to Puerto Eico dur-
ing 1940 broke all records for the fourth consecutive
year, according to a statement by the Puerto Rican
Trade Council.

The island purchased 857,000,000 cigarettes during
the year, an increase of 1 per cent, over 1939, the Coun-
cil stated, pointing out that Puerto Rico ranked second
as a market for cigarettes sold outside the United
States mainland.

The territory's preference for U. S. cigarettes has
increased rapidly, having doubled in the last ten years,
the report stated.

The continued increases are attributed largely to
Federal spending for relief, housing, and defense bases,
inasmuch as income from Puerto Rican industries has
been curtailed by sugar quotas and the wage-hour bill.

Puerto Rico's purchases of all goods from conti-
nental United States during the year were valued at
$103,980,000, an increase of 20 per cent., the Council
reported.

*'GAY NINETIES REVUE''

Columbia's **Gay Nineties Revue" shifted from
Saturdays to Mondays and started broadcasting under
the sponsorship of the United States Tobacco Co. on

The Tobacco World

February 24th. The series, which is broadcast over
fifty-two C. B. S. stations in the interest of Dill's Best
and Model smoking tobacco, has been a hit-sustaining
program on Columbia ever since its debut, July 2, 1939.

'^Tlie Gay Nineties Revue," under the direction of
Al Rinker, recaptures the spirit and the letter of Amer-
ican entertainment around the turn of the century. The
atmosphere is pure and authentic **Gay Nineties" and
the program has won a huge following among those
who lived in the mauve decade and those who have
only heard about it.

Director Rinker and Producer Frank A. McMahon
dig back more than four decades for their material;

n-nA fV>o rpcnlf i<a fVio rnvthipal ^^Rrond^'^^a'^^ GaTTlpns " «

night spot of the Gay Nineties, which is so truly cre-
ated that many listeners call C. B. S. to ask where it is
located.

* 'JOHNNY PRESENTS"

Philip Morris & Company, Ltd., manufacturer of
Philip Morris cigarettes, has renewed its 9-9 :30 P. M.
period on the Columbia Broadcasting System network
Friday evenings for fifty-two weeks, during which it
will continue to sponsor ** Johnny Presents," its ex-
tremely popular variety show, which began on Colum-
bia in February, 1937. Featuring Ray Block's Or-
chestra, Audrey Marsh, '* Beverly," Floyd Sherman,
Roger Kinney, Glenn Cross, the Swing 14 Chorus, and
a dramatized ** Perfect Crime," as well as Johnny, the
famous call boy, *Mohnny Presents" increases its Co-
lumbia network with the new contract by twelve sta-
tions, with ninety CBS stations carrying the program
from coast to coast. The rebroadcast is heard Fridays,
11 :30-12 midnight.

Philip Morris, which has used Columbia facilities
for 234 weeks, is also represented on CBS by a popular
dramatic program, ''The Crime Doctor." This series
of original crime dramas is heard each Sundav evening,
8:30-8:55 P. M., rebroadcast 11-11:25 P. M. over a net-
work of sixty-nine stations.

Both Philip Morris programs are handled by the
Biow Company, Inc.

NAMED B & W VICE-PRESIDENT

At a recent meeting of the executive committee of
the Brown & Williamson Tobacco Corporation, E. M.
Lewis was designated as vice-president in charge of
sales, and J. C Williams, a director of the company,
was named his assistant.

Mr. Lewis has been a director and vice-president
of the company for several years, but will now devote
his entire time to sales promotion work.

Mr. Williams, sales manager since 1935, will re-
linquish this post upon assuming his new duties and,
r^ +i ^^^^^ change in organization, no new appointment
to the position of sales manager is contemplated.

BRIGGS

POPULAR LEADERS

By P. Lorillard Co.

UNION

LEADER

OLD GOLD
Zip-Top
Package

FRIENDS
FOIL POCKET
POUCH 10c

MURIEL Senators
Si

BEECH-NUT
10 & 15^

VAN

BIBBER

5 for 10^

ROCKY FOR[>
2 for 5i

SENSATION
20 for \Qi

BETWEEN THE ACTS
15^ pkg. of ten

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands

BETUN, AROMATIZER, BOX FLAVORS, PASTE SWEETENERS

FRIES & BRO., 92 Reade Street, New York

CIGAR BOXES

Tel. Algonquin 4-9532

1&^»

Established 1875

■o»»«icio»iii«w

•S7-64I KAST 17 19 ST.

MK%V vol

The sure test of a GOOD GIFT is that it must please and there is no other gift that pleases a

man more than a box of Manila cigars that's why fastidious men and women who wish to

please their loved ones prefer Manila cigars that come in various and exquisite holiday wrappings.

You, Mr. Dealer, be ready for the holiday rush by buying your supply of Manilas now.

For particulars about Manilas write to

THE PHILIPPINE TOBACCO AGENCY

2362 Massachusetts Avenue, N. W., Washington, D. C.

March, 79^ j

II

Ml «W COUPON^

lABLC-

jMNIOi

•rmi

I*'

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plam
ends Save these valuable coupons for cash or

one of the seventy luxury premiums.

UMONMAM

Sunday... CBS coast to-coast nctworK.

1330 coupons. Ask the B & W sales-
*man for a supply of catalogs showing
all the premiums you can save for.

KING EDWARD Sales keep
right on climbing because the
King Edw^ard combination of
quality and price is unequalled . . .
and because we're facing a man's
world where a man's smoking
needs are increasingly important.

^^

Be prepared for your growing
profit opportunities by carrying
ample stocks of King Edward . . .
America's biggest selling cigar

Increase your unit sales
with the handy and popular

A TEN-PACK

— Ten big King Edw^ards
for a quarter.

JNO. H. SWISHER e/ SON, Inc.

Cuj^ar Manxifacturers JACKSONVILLE, FLORIDA

TOBACCO JOBBER INDISPENSABLE

(Concluded from February issue)

As proof of our contention that the wholesale to-
bacco distributor's cost of operation average a mini-
mum of 5 per cent., it is sufficient to cite the facts ad-
duced by our own survey in the 84 trading areas.

^ Again the U. S. Census of 1940 substantiates our
claim by establishing the tobacco wholesaler's cost at
4.9 per cent.

Thus, we have established beyond question the
wholesaler's cost of operation. To justify this, let us
see what actual functions he performs for the manu-
facturer, the retailer and the consumer. Here they
are:

12

1. Helping to introduce new items to the retail
trade.

2. Aiding the retailer and the manufacturer in
creating and increasing the demand for a particular
product ;

3. Griving full support to the manufacturer 's mer-
chandising policies and programs;

4. Conducting intensive sales drives and passing
on retail helps and pertinent information about the
product ;

5. Traveling salesmen regularly and contacting
every retailer at regular intervals;

6. Furnishing complete and easily accessible cov-
erage of every retailer as the result of location in every
wholesale center;

7. Serving every retailer within a territory with-
out reference to quantity of purchases, with credit ex-
tension as needed, and without any special require-
ments as to conditions of service;

8. Distributing in lots smaller than the manufac-
turer can afford to distribute ;

9. Buying in advance of sales and having full
stock available for immediate order-filling;

10. Selecting and carrying goods suitable for the
trade ;

11. Forecasting needs of trade for staple and sun-
dry lines;

12. Maintaining complete stocks at all times;

13. Providing and maintaining full assortments
of items needed or likely to be needed in a territory
so as to fill orders completely and promptly for both
regular and emergency merchandise;

14. Providing warehouse space and special care
and protection where needed for all classes of mer-
chandise between time of purchase and sale;

15. Prepaying transportation to customers ;

16. Providing entire capital for operation of busi-
ness ;

17. Financing retailers by extending credit as
needed.

Before giving you a summary of the statistics
which we have compiled, there is another development
on which we should touch. There has been and still
IS considerable talk of consumers' cooperatives replac-
ing the wholesaler. It is generally inferred that such
a development would result in decidedly reducing costs
to the consumer. A study of consumers' cooperatives
in Europe was undeitaken by a group of prominent

The Tobacco World

^Mvsnu.

MODEL TOBACCO Presents

on« of radio's outstanding hits

"THE OAX NINETIES''

You And A!! Ye«r Custewsrs WH! Iik# It

Coast to Coast Every Monday Night

on Columbia Broadcasting System

American economists, and a summary of their report
points out the following: a survey of consumer's co-
operatives in the grocery business shows that the co-
operatives, by rendering a minimum of service, can
be operated more cheaply; but where other functions
such as credit and delivery are added, their total ex-
penses approximate and in some instances exceed those
of the service wholesalers. We may conclude, there-
fore, that the threat of consumer cooperatives is still
quite remote.

So far as wholesale distributors are concerned, if
their costs are to be reduced — and it is extremely
doubtful if that is possible — the economies would have
to come from a reduction of expenses, which consist
largely of payrolls. The cutting of wages and sal-
aries is not administratively possible. Therefore, if
the cost of wholesale tobacco distribution is to be re-
duced at all, the economies must be gained by elim-
inating some of the services which are now rendered.
However, today the consumer has been led by modern
advertising and promotional effort to expect more and
more in the way of service. He demands the extra
services from the retailer, who, in turn, expects the
same type of services from the wholesaler.

It is less difficult for the manufacturer to reduce
his more flexible production costs than it is for the dis-
tributor to reduce his overhead expense. The pro-
ducer can quickly adapt his plant operation to changes
in the demand for his product, but the distributor im-
mediately comes face to face with almost insurmount-
able difficulties the moment he attempts to reduce any
of his items of expense, which are already kept at an
almost irreducible minimum.

With an improved statistical background a better
knowledge of market potentialities and a more pro-
nounced ability to adapt himself to changing condi-
tions, the tobacco distributor may achieve certain im-
provements. Yet one great and amazing fact stands
out above everything else. The tobacco distributors
today are carrying the responsibility of distributing
a volume of tobacco products which is reaching the
staggering figure of $1,500,000,000 annually. We are
an integral part of the instrumentality which is pro-
viding about $650,000,000 annually in federal taxes.
We are rendering a sales promotion, delivery and
credit service to more than 950,000 retailers, and we
are helping to gratify the daily demands for their
lavorite brands of tobacco products of the American
people. To achieve all this, and function with effi-
ciency is a tribute to the industry as a whole, and to
the distributor in particular.

March, ig^r

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter
It's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 67 years
15 Washington St. Newark, N. J.

Eatabliahcd 1886

"BEST OF THE BEST"

Manufactured by

A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Florida

AUTOKR AFT

CIGAR BOXES

Boile Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit, Mich.

ilelUm. Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling, W. Va.

i3

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

chants' Association on each registration.

Note B — it a report on a search of a title necessitates the reporting of more
than ten (lU) titles, but less than twenty-one (21), an additional charge of One
Dollar ($1.00) will be made. It 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 REGISTRATION.

TISHIMINGO: — 46,832. For cigar clippings, chewing and pipe to-
baccos. Registered by Edward A. Steffen and Caroline G. Steffen,
Indianapolis, Ind., on February 6, 1941.

TRANSFERRED REGISTRATIONS

WINSTON CHURCHILL:— 18,020 (Tobacco Leaf). For cigars,
cheroots and cigarettes. Registered November 23, 1899, by Cal-
vert Litho. Co., Detroit, Mich. Transferred to American Box Sup-
ply Co., Detroit, Mich., on March 12, 1923.

WHITE LION:^40,969 (Tobacco Merchants' Association of the
U. S.). For all tobacco products. Registered January 31, 1919, by
Pasbach Voice Litho. Co., New York, N. Y. Also 23,926 (United
States Patent Office). For cigars, on January 17, 1922, by Gus
Neuwahl, Altonna, Pa. Through mesne transfers acquired by the
Schlegel Litho. Corp., New York, N. Y., and re-transferred to
Schwartz Bros. Cigar Co., Philadelphia, Pa., on January 24, 1941.

LOUIS THE FIFTH:— 41,354 (Tobacco Merchants' Association of
the U. S.). For all tobacco products. Registered September 24,
1919, by Louis Klein, New York, N. Y. Transferred to Llerena
Bros., New York, N. Y., on January 27, 1941.

TEXAR:— 14,742 (United States Tobacco Journal). For cigars.
Registered October 22, 1892, by A. Steffen, IndianapoHs, Ind
Transferred to Crmison Coach, Inc., Toledo, Ohio, on February

TISHIMINGO:— 14,743 (United States Tobacco Journal). For ci-
gars. Registered October 22, 1892, by A. SteflFen, Indianapolis, Ind
Transferred to Crimson Coach, Inc., Toledo, Ohio, on Februarv 5
1941. ^ '

TISHIMINGO:— 46,832 (Tobacco Merchants' Association of the
U.S.). r or cigar clippings, chewing and pipe tobaccos. Registered
February 6, 1941, by Edward A. Steffen and Caroline G. Steffen
Indianapolis Ind. Transferred to Crimson Coach, Inc., Toledo!
Ohio, on February 6, 1941.

THORNDYKE:-42,985 (Tobacco Merchants' Association of the
lo^rl: c'i'" P'P^^,^"d smokers' articles. Registered January 16,
1923, by Schwarz & Son, Newark, N. J. Through mesne transfers
acquired by Wm Demuth & Co. (now known as the Manor Pipe
Co., Inc., New York N. Y ), and re-transferred to D. A. Schulte,
Inc., New York, N. Y., on January 21, 1941

FINESSE:— 10,077 (Trade-Mark Record). For cigars. Registered
January 26 1891, by Geo. S. Harris & Son, Philadefphia, Pa^Tmns-

'''"^ J^ ff ^y^^':^' ^ ^^'J"^' New York, N. Y., and re-trans-
ferred to Medalist Co., Inc., New York, N. Y., on January 31 1941

THREE SQUIRES OFFER

So gratifying has been the acceptance of Three
Squires Pipe Mixture that the Westminster Tobacco
Corp., subsidiary of the Rum and Maple Tobacco Corp
announces the continuation of its introductory offer of
one free foil package with each dozen. This offer was
originally made to help introduce Three Squires to the
retailer and has been continued ever since because of
the splendid cooperation of retailers in displaying this
attractive Three Squires counter exhibit Three
Squires sells for 15 cents a package. The attractive-
ness of both tlie Three Squires package and of the dis-
play as a whole has contributed in a large measure to
the eagerness of retailers to provide this brand with
such wide display.

14

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

<^^

JESSE A. BLOCH, Wheeling. W. Va Presid«>nt

GEiKGEVmi'l'^^NT ""'f^^-r^'v ^^"^'•'"^" Executive Committe"

UtUKUb VV. HILE, New York, N. Y Vice-Pre«iifl#.n»

GEORGE H. HUMMEL, New York. N. Y . Vet Pre! den

S CLAY WILLIAMS. Winston-Sal^ra, N. C V ctpres S

JULIUS LICHTENSTEIN, New York N. Y V ce-pfes S

ASA LEMLEIN, New York. N. Y. TrIIsu"

CHARLES DUSHKIND, New York. N. Y Counsel and Managing Lfreclo

Headquarters, 341 Madison Ave.. New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC

g^l^^^X^-i^^NNEY. Worcester. Mass President

EDMUND C. DEARSTYNE, Albany, N. Y ..Vce-PrSden

J RENZ EDWARDS, Kansas City, Kan .V... .. . Trersu°r

JOSEPH KOLODNY, 200 Fifth Ave., New York, N. Y .::Secretary

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

^^^ t; LASCHOW. 862 East Fifteenth St.. Brooklyn, N. Y Preside

R. L Mccormick, 52 Klein Ave.. Trenton. N. T. ... .First V ce-Pres deiii

■l'A^,L]rENDORFF, 780 West End Ave.. N^w Y^ork. N. Y. Executive SecriSSi
ALBERT FREEMAN. 25 West Broadway. New York, N. Y. :..... .TreasurS

RETAIL TOBACCO DEALERS OF AMERICA, INC

foHM S;Ji'nTF^' ^^^ B'-°adway, New York. N. Y President

JUl-IN MAUrE Vir#»-Pr#.«i/1««*

CLIFFORD M. DAWSON Trea,,.r*!

MALCOLM L. FLEISCHER i."..'.".'.".'. .]!! 1 ;".".:'.:;;;;Secfetary

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA
INC, 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA PresirUn*

THOMAS C. BREEN Treal.,r^

SAMUEL BLUMBERG General Counsel

Executive Committee— Alvaro M. Garcia (Ex-officio), Thomas "c. Breen. Harley W

Jefferson. D. Emil Klein, Walter E. Popper, Harry C. Carr, and Arthur A

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion, Pa President

T. E. BROOKS, Red Lion, Pa Vice- Pres den

itf^WM S- ZIEGLER, Red Lion. Pa. .....•.'.■.•.;.•;;;. Trirsure

RUSSELL S. STINE, Red Lion. Pa ...■.V.V.V.V.'.SecJeiary

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

JOSE p. PEREZ. Tampa, Fla President

kXin'??Vv''^°^'^^I,^' ^^™P^' ^'^ •.•.•.'.•.■.■.•.•.•.•..•.viceipfeS

JUHN LEVY, Tampa, Fla TrMQur^r

FRANCIS M. SACfe, Tampa, Fla /../.■.■.■.■.■.■.■..■.:;■.■.■.:■.•.:;• Secfeta^^^^^

INDEPENDENT RETAIL TOBACCONISTS'

ASSOCIATION

BERNARD SCHWARZ President

ERIC CALAMIA FVr«!t * vire*Pr#.c;H»fi»

BEN;. FRIEDMAN Second V cl Pres S

JOSEPH GROSSMAN xhTrd V ce-Pres d«

ARTHUR W. JONES Financial slcretlrv

LOUIS GROSSMAN financial ^ecre ary

BERNARD BERNSTEIN. 42 Broadway, New' York. N.' Y.' ■.■.■.'.■.■. ■.;■.;:;■.■. SeSetary

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA INC

JOSEPH FRIEDMAN President

TACK EDELSTEIN .■.■::: Trllsure

LEO RIEDERS. 3800 Broadway. New York. N. Y. ..■■■.■.■.■.■.■.■.■.■.■.■.■...■.'.■.■.■.■.Secretary

* Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue based on

manufacturers' returns of production)

Month of November

Product 1940

Pluff 3,941,841

Twist 442,340

Fme-cut Chewing 421,429

Scrap Chewing 3,256,260

Smoking 17,641.733

+
+

Increase or Decrease

Quantity Per Cent.

90,517 2.35

72,903 14.15

55,880 15.29

159,022 4.66

175,154 1.00

0.35

Total 25,703,603 + 89,626

Eleven Months Ending November 30

Increase or Decrease
Product 1940 Quantity Per Cent.

PluR 45,076,960

Twist 5,145,027

Fme-cut Chewing 4,356,962

Scrap Chewing 39,166,202

Smoking 189,886,158

Total 283,631,309 + 249,777

2,648,942

5.55

139,562

2.64

4-

166,502

3.97

+

816,901

2.13

4-

2,054,878

1.09

0.09

♦The production figures are in pounds, and are subject to revision
until pubhshed in the annual report of the Commissioner of Internal
Revenue

INTERNAL REVENUE COLLECTIONS FOR

Source of Revenue 1941

Cjgars $ 926,560.75

Cigarettes 52,935,860.03

'^nutt 615,978.46

Tobacco, chewing and smoking 4,596707 72

Cigarette papers and tubes ' 62875 54

Leaf dealer penalties 1 020.01

The Tobacco World

JANUARY
1940

$ 894,578.27

43,704,583.29

578,429.68

4,235,257.03

105,543.48

45.75

/)lo ' ^

•ft fe 'C E 1 v ^ 10

Al^inr''*-

1941

A

ESTABLISHED
1681

TIME TO PREPARE
FOR FATHER'S DAY

Promotion is under way for 1941
Father's Day, to be celebrated June 15.

Movies, radio, newspapers, magazines,
local and national societies, and stores
from coast to coast will proclaim the
event.

The tobacco trade and industry shared
in the increases on Father's Day last
year.

Those who start to prepare for it now
will profit greatly from the 1941 celebra-
tion.

c^l
T^r

HoBAKT B. Hankins — Editof

Business Manager — B. S. Phillips

LOUISE STANLEY

Chesterfield's Girl of the Month

Ahead for MILDNESS ... for BEHER TASTE and COOLER SMOKING

...that's what smokers want these days and Chesterfields
are qiiiek to give it with their right combination of the
world's best cigarette tobaccos... They Satisfy.

Everywhere you look you see those friendly
^^ ^*^hite packages . . . it's the smoker's cigarette.

CM£Sr£RF/£/D

Copyright 1941. Liggett & Myeks Tobacco Co

THE TOBACCO WORLD

Vol. 61

APRIL, 1941

No. 4

ROiM Eric Calaniia, president of the Retail To-
bacco Dealers of America, comes the request
that all tobacco dealers communicate with the
Congressnien of their States who are members

yjx. vjjiv^ Xj-vewtB?^ wuUx\^it*i^ V Oiiiiin i tire lOi llie pUrpO»u Ul

informing them of the importance of defeating II. R.
3821, which calls for repeal of the Tydings-Miller Fair
Trade Enabling Act. The bill, introduced by Congress-
man Hampton P. Fuhner, of South Carolina, and re-
ferred to the Judiciary Committee, is characterized as
an attack on fair trade and the greatest threat to the
fair trade movement. 'Tt was after the passage of the
Tydings-Miller Act,'^ Calamia writes, *^that manufac-
turers undertook wide enrollment of their products
under the various State resale price maintenance laws
because it clearly exempted fair trade contracts from
the Federal anti-trust laws. The repeal of this exemp-
tion would again raise the doubts that existed before
the passage of the Federal Fair Trade Enabling Taw. '^

HE Philippine government is complethig plans
to stabilize and improve the marketing condi-
ditions of Manila cigars in the United States,
bearing in mind the independence law which
provides for a declining duty-free quota for the next
^vi^ years and the possibility of full United States duty
being imposed upon them at the granting of independ-
ence in 1946. As an initial step, the Philippine govern-
ment provided for the transfer of the Philippine To-
bacco Agency, which had operated as an independent
entity, to the office of the Resident Commissioner for
the purpose of co-ordinating the activities of this
agency along the general plan of the Philippine gov-
ernment for a greater and more profitable trade with
the United States. The organization in Manila last
year of the National Tobacco Corporation, capitalized
at $5,000,000, not only to improve the production of
tobacco leaf and cigars but also to help in the market-
ing of Manila cigars, principally in the United States,
was described as an indication of the eiforts of the
Philippme government to afford dealers of Manilas in
the Lmited States every opportunitv to handle them to
the best advantaee.

1

HE cigar industry is an important factor in
Philippine economy. It is one of the oldest
industries of the country. It ranks fifth on the

, Philippine export list. As an emplover of
labor, it stands out first throughout the Philippines
Approximately 600,000 people in the islands are de-
pendent on this industry, which commands an aggre-
gate investment of approximately $30,000,000. Ac-
cording to statistical figures recentlv released by gov-
ernment quarters, the islands serve more than* forty
countries with tobacco exports, although the Pnited
states absorbs the major portion of tliose exi)oits.

-» a cop. .rei.„. ... a .ear. ..ered a. second-c.ss mai, ^tte^orrV-r:: t^Z^^^^X^, '^^::f^)J: :^t:2t^^

Manilas, the Resident Commissioner states, are hand-
made and carry only long fillers. In addition, he says,
the Manila factories, which embody the latest engi-
neering and sanitation advances, used the aromatic to-

well known to tobacconists as the region of ''perennial
summer and sunshine,'' but also in the rich fields of
Cotabato and Davao on the island of Mindanao.

N instructions of the Administrator of the
Wage and Hour Division, U. S. Department of
Labor, the Special Industry Committee for
Puerto Rico will begin an investigation of con-
ditions in the leaf tobacco industry of the island. The
Committee w4ll hold a public hearing April 22d in the
Department of Labor building in Washington. Two
new members appointed to the Committee are closely
associated with the Puerto Rican tobacco industry.
Bellarinino Suarez is president of Tabaealeros Unidos,
a leaf tobacco association of Puerto Rico. Thomas C.
Breen is a member of the Board of Directors of the
Cigar Manufacturers Association of the United States,
Inc., and for a number of years associated with the
Puerto Rican American Tobacco Company. Both are
familiar with general conditions on the island as well
as the trade problems of growing, handling, stripping
and marketing of Puerto Rican tobacco.

HINKING is not pleasant for many people, and
hence not very popular. Faced with a situa-
tion that calls for some thinking, the average
man will brood and worry and eventually go
out for a drink or to the movies. He will avoid think-
ing as thoroughly as possible. Many people go through
life without losing their amateur standing in this re-
spect. There are other people who want to think, and
try to think, and hope to think, but don't quite know
how. Many of them don't know they don't know how
and resort to spurious substitutes. Leo McGivena'
who, as promotion manager of the New York Daily
News, made the Sweeneys famous, and whose thoughts
are embodied m this paragraph, says he knows one man
who thinks he is a salesman, and is all set up with his
tlieoretical technique of thinking. He asks questions
rapidly and enthusiastically. He is often so absorbed
in asking questions that he doesn't listen to the an-
swers. Sometimes the other man forgets what the
business at hand is all about, and answers enthusias-
tically; and the session becomes a game, like a couple
ot kid i)itchers playing catch and trying to burn the
other fellow 's hands. After a while they call it a draw
and settle down to an amicable discussion of mutual
triends, or the better places to eat in town. Often thev
part with a high mutual regard for each other as a
coup c of smart fellows. That is an example of two
people engaged in -thinking." They don't think.
I hoy only think tlioy think.

Cigars and Cigarettes Up in February

There was a Gain in U. S. Withdrawals
of Every Class of Cigars; Cigarettes
Showed Increase of 1^ early 10 Per Cent.

IGAKS, cigarettes and large cigarettes were
up; little cigars, snuff, chewing and smoking
tobacco were down. That summarizes Febru-
ary withdrawals for consumption as reported
in the supplement to the Tobacco Barometer of the To-
bacco Merchants Association of the United States.
There was a gain in United States withdrawals of
every single class of cigars, ranging from 2.05 per cent,
in Class A to 36.18 per cent, in Class E, the average
increase being 2.53 per cent, for the total of all classes.
This was reduced to 0.62 per cent., however, by Phil-
ippine losses in Classes A and E.

Class A cigars in the U. S. totaled 351,958,800, as
compared to 344,890,195, a rise of 7,068,605, or 2.05
per cent., as noted. P. I. withdrawals totaled only
10,392,700, as compared to 17,518,835, a drop of 7,126,-
135, or 40.68 per cent. P. R. withdrawals totaled 32,050,
as compared to 18,000, a gain of 14,050. Grand total
for the class was 362,383,550, as compared to 362,427,-
030, a decline of 43,480, or 0.01 per cent.

Class B cigars in the U. S. totaled 2,938,995, as
compared to 2,703,637, an increase of 235,358, or 8.71
per cent. P. I. and P. R. gains brought the total for
the class up to 2,990,745, as compared to 2,707,610, a
gain of 283,135, or 10.46 per cent.

Class C cigars in the U. S. totaled 28,018,070, as
compared to 25,967,702, an increase of 2,051,168, or

Increase or Decrease
Product February, 1941 Quantity Per Cent.

Cigars :
Class A —

United States 351.958,800 -}- 7,068,605 2.05

Philippine Islands ... 10,392,700 — 7,126,135 40.68

Puerto Rico 32,050 + 14,050

Total 362,383,550 — 43,480 0.01

Class B —

Unified States . 2,938,995 + 235,358 8.71

Philippine Islands . . . 45,700 + 43 427

Puerto Rico 6,050 -f 4,'350 '..['.

Total 2,990,745 -f 283,135 10.46

Class C —

United States . 28,018,870 -f- 2,051,168 7.90

Philippine Islands ... 20,105 + 9 783

Puerto Rico 50 — 7,450 '. '. [ [

Total 28.039,025 + 2,053.501 ~T90

Class D —

United States 2,151,780 + 94.820 4.61

Phihppine Islands ... 3,300 — 0 47ri

Puerto Rico 300 + 300 :.'::

Total 2.155,380 + 85.644 ~Th

Class E —

United States 280 388 4- 7d d«fi 7^10

Philippine Islands .. . 4,000+ 3 7^0 '^^

Puerto Rico ^ ^'^^"

******

•••• ••••

'^°*^' ' 284.388 -f 78;238 ly^i

7.90 per cent., the gain remaining at that figure for the
class as a whole despite a P. I. gain and a P. R. loss.

Class D cigars in the U. S. totaled 2,151,780, as
conipaiea lu ^yvobymiu, an auvance 01 y4,»zu, or 4.bl
per cent. A P. I. decrease of 9476 and a P. K. increase
of 300 served to reduce the net gain to 85,644, or 4.14
per cent.

Class E cigars in the U. S. totaled 280,388, as com-
pared to 205,900, a gain of 74,488, or 36.18 per cent.
This was raised to 37.95 per cent, by a P. I. eain of
3750. *"

All classes of cigars totaled 385,348,833, as com-
pared to 375,824,394, an increase of 9,524,439, or 2.53
per cent. P. I. withdrawals totaled 10,465,805, as
compared to 17,544,456, a decrease of 7,078,651. P. E.
withdrawals totaled 38,450, as compared to 27,200, a
gain of 11,250. Grand total was 395,853,088, as com-
pared to 393,396,050.

Cigarettes in the IT. S. totaled 14,464,626,900, as
compared to 13,162,661,213, an increase of 1,301,965,-
687, or 9.89 per cent.

Large cigarettes totaled 106,420, as compared to
77,600, an increase of 28,820, or 37.14 per cent.

Little cigars totaled 12,577,520, down 5.14 per
cent.; snuff, 3,051,492 pounds, down 2.96 per cent.;
chewing and smoking tobacco, 22,150,840 pounds, down
6.58 per cent.

Following are the comparative figures :

Product February, 1941

Total All Classes:

United States 385,348.833 +

Philippine Islands ... 10,465,805 —
Puerto Rico 38,450 +

Grand Total 395,853,088 -|-

Little Cigars:

United States 12,577,520

Philippine Islands ...
Puerto Rico

Total ~, 12,577,520 —

Cigarettes:

United States 14,464,026,900 +

Phihppine Islands . . . l,000 +

Puerto Rico 326,160 +

Total 14,464,954,660 +

Large Cigarettes:

United States 106.420 -f

Phihppine Islands ... __

Puerto Rico ......

Total 106.420 +

Snuflfdbs.):

All United States ... 3.051,492 —

Tobacco (Chewing and
Smoking) lbs.:

United States 22,150,840 —

Phihppine Islands ...

Total ~, 22.150.840 —

Increase or Decrease
Quantity Per Cent.

9,524.439

7.078.651

11.250

2.53

• • ■ «

2,457,038

0.62

681,735

5.14

• • ■ •

• • • •

681,735

5.14

1,301.965.687

1,200

76.160

9.89

• • • •

1.302.043,047

9.89

28,820

1,600

10,000

37.14

• • • •

• ■ • •

17,220

19.30

93,064

2.96

1,561,220

6.58

1940-41 Fiscal Season Shows Good Gains

Increases General for First 8 Months
in All the Classifications of Tobacco
Products, Excepting Large Cigarettes

LL classifications of tobacco products except
large cigarettes show gains for the first eight
months of the 1940-41 fiscal season as com-
pared to the same period last season, it is re-
vealed in the supplement to the Tobacco Barometer of
the Tobacco Merchants Association of the United
States. The increases range from 1.80 per cent, for
cigars of all classes to 7.06 per cent, for little cigars.
The large cigarette loss was 40.04 per cent.

Class A cigars in the U. S. totaled 3,251,075,855,
as compared to 3,175,088,090, a gain of 75,987,765, or
2.39 per cent. P. I. withdrawals totaled 119,647,075, as
compared to 139,500,680, a loss of 19,853,605, or 14.23
per cent. P. E. withdrawals totaled 665,900, as com-
pared to 771,300, a drop of 105,400. Total for the class
was 3,371,388,830, as compared to 3,315,360,070, an
increase of 56,028,760, or 1.69 per cent.

Class B cigars in the U. S. totaled 28,478,885, as
compared to 28,702,110, a loss of 223,225, or 0.78 per
cent. This was reduced to 0.43 per cent., however, by
P I and P R increases

'class C cigars in the U. S. totaled 343,802,884, as
compared to 334,375,864, an increase of 9,427,020, or
2.82 per cent. The P. I. gain was 19,175 and the P. R.
gain 59,600, bringing the total increase up to 9,505,795,
or 2.84 per cent.

1,561,220 6.58

The Tobacco World

1st 8 Mos.

Product Fiscal Yr. 1941

Cigars :

Class A —

United States 3,251,075,855 +

Philippine Islands ... 119,647.075 —

Puerto Rico 665.900 —

Total 3.371.388,830 +

Class B —

United States 28.478,885 —

Philippine Islands ... 151,309 +

Puerto Rico 188,050 +

Total 28,818,244 —

Class C —

United States 343,802,884 +

Phihppine Islands . . . 252,932 +

Puerto Rico 384,550 +

Total 344,440,366 -f

Class D —

United States 26,480,162 +

Philippine Islands . . . 63.945 —

Puerto Rico 2.400 +

Total 26.546,507 +

Class E—

United States 3,203,198 —

Philippine Islands ... 272,725 -j-

Puerto Rico

Total 3,475.923 —

Increase or Decrease
Quantity Per Cent.

75,987,765

19,853,605

105,400

2.39
14.23

• • • •

56,028,760

1.69

223,225
65,325
32,850

0.78

• • • •

• • • •

125,050

0.43

9,427,020
19,175
59,600

2.82

• • • •

• • • *

9,505,795

2.84

1,467,047

176,901

200

5.87

• • • •

• • • •

1,290.346

5.11

263.600
238,334

7.60

■ • • •
• • • •

25,266

0.72

Class D cigars in the U. S. totaled 26,480,162, as
compared to 25,013,115, an increase of 1,467,047, or

5.87 per cent. P. I. withdrawals totaled only 63,945,

-- J 4-- 040 o I/? „ j^^i:,,^ ^*i7pQni r>-^A T> p

as cumpartju lu ^*±u,o'±u, a uccmit; i^a xiO,cA^x, cmU x . rv.

withdrawals advanced slightly from 2200 to 2400. The
net gain was 5.11 per cent.

All classes of cigars in the U. S. totaled 3,653,040,-
984, as compared to 3,566,645,977, an increase of 86,-
395,007, or 2.42 per cent. P. I. withdrawals totaled
120,387,986, as compared to 140,095,658, a loss of
19,707,672, or 14.07 per cent. P. R. withdrawals totaled
1,240,900, as compared to 1,253,650, a drop of 12,750.
Grand total was 3,774,669,870, as compared to 3,707,-
995,285, an increase of 66,674,585, or 1.80 per cent.

Little cigars totaled 102,073,692, an increase of
6,735,396, or 7.06 per cent.

Cigarettes in the U. S. totaled 122,003,939,343, as
compared to 115,999,520,507, an increase of 6,004,418,-
836, or 5.18 per cent.

Large cigarettes totaled 1,043,382, down 39.75 per
cent.

Snuff totaled 25,023,526 pounds, a gain of 220,841
pounds, or 0.89 per cent.

Chewing and smoking tobacco gained 1.34 per cent.

Following are the comparative figures :

1st 8 Mos. Increase or Decrease

Product Fiscal Yr. 1941 Quantity Per Cent.

Total All Classes:

United States 3,653,040,984 + 86,395,007 2.42

Philippine Islands ... 120,387,986 — 19,707,672 14.07

Puerto Rico 1,240,900 — 12,750

Grand Total 3,774,669,870 + 66.674,585 1.80

Little Cigars:

United States 102,073,692 -f 6,735,396 7.06

Philippine Islands ... ....

Puerto Rico ....

Total 102,073,692 + 6,735,396 7.06

Cigarettes:

United States 122,003,939,343 -f 6,004,418,836 5.18

Philippine Islands ... 227,392 — 484,248

Puerto Rico 1,652,935 — 849,865

Total 122,005,819,670 + 6,003,084,723 5.17

Large Cigarettes:

United States 1,043,382 — 688,416 39.75

Phihppine Islands ... 780 — 1,020

Puerto Rico 97,785 — 73,215

Total 1,141,947 — 762,651 40.04

Snuff (lbs.):

All United States ... 25,023,526 -f- 220,841 0.89

Tobacco (Chewing and
Smoking) lbs.:

United States 204,119,751 + 2,694,732 1.34

Philippine Islands ... 12 -j- 5

Total 204,119,763 + 2,694,737 114

5

Oklahoma Distributors Organize

HE tobacco distributors of Oklahoma, at a woll-
attended and enthusiastic meeting held at the
Biltmore Hotel, Oklahoma City, on Sunday,
March 9th, organized a state-wide association
and elected T. D. Norris, Norris Tobacco and Specialty
Company, Oklahoma City, to serve as ])resi(lent.
Eighty-seven representatives of the Oklahoma whole-
sale tobacco trade were present and the decision to
establish a State organization was taken by unanimous
vote.

Every section of the State was well represented
and the convention was also attended by Joseph Kol-
odny, executive secretary of the National Association
of Tobacco Distributors, who was the principal
speaker; J. Renz Edwards, of the F. S. Edwards To-
bacco Company, Kansas City, Kansas, treasurer of the
N. A. T. D., and F. M. Parkinson, N. A. T. D. co-ordi-
nator for Texas and Oklahoma.

The designation of the new organization is the
Oklahoma Association of Tobacco Distributors. C. B.
Smith, Smith Cigar and Tobacco Co., Oklahoma
City, was elected treasurer, and E. B. Hall, of the F. S.
Edwards Tobacco Co., Tulsa, was named secretary.
The board of directors of the new association in-

cludes (\ B. Smith, Oklahoma City; A. E. Webber,
Webber Wholesale Co., Ponca City; R. S. Glendenning,
Shawnee Candy Co., Shawnee; R. B. McKinzie, Mc-
Kinzie Wholesale Co., Holdenville; L. W. Hevnum,
Heynian & Co., Tulsa; E. B. Hall, Tulsa, and T. D.
Norris, Oklahoma City.

The Oklahoma Legislature recently enacted an
Unfair Sales Act, which was signed by the Governor
and went into etfect on February 24th. This legisla-
tion W71S sponsored mainly by the N. A. T. D. and a
group of prominent Oklahoma tobacco distributors.
The law, which provides for a nuninmm maik-Uj. above
cost, both for wholesalers and retailers, is iJiov.ng
elTective in outlawing the loss-leader practice and is
being observed universally. A single attempt was
nmde by the Katz Drug chain to ignore the n«w legis-
lation. The Oklahoma distributors promptly obtained
a temporary injunction. Following a hearing on
March 4th, a three judge decision was rendered u hold-
ing the constitutionality of the new law and restraining
the Katz Drug Company permanently from evading its
provisions.

Mr. Kolodny met with the St. Louis distributors
on Monday, March 10th, and on Tuesday held a confer-
ence with the Louisiana distributors at New Orleans.

Recently, The American Tobacco Company
launched a vigorous advertising campaign for its
popular Half & Half smoking tobacco. Color pages are
appearing in national magazines in which are illus-
trated handsomely carved pipes of silver, meerschaum,
briar and ivory.

Tying in with this campaign, a collection of finely
carved pipes, assembled in honor of Half & Half, w^as
exhibited in one of the most unique window displays
ever created in the interest of smoking tobacco. Tlie
display was shown in the Schulte retail store window

6

at Forty-second St. and Fifth Ave., New York City,
and attracted throngs of people. It is expected that
this display will appear in other prominent spots in
different parts of the country.

One of the outstanding features of the collection
is a large meerschaum pipe depicting the landing of
Columbus, show^n on the lower right portion of the
photograph, and another is a finely carved meerschaum
head of a bull. Tn the center of the display a giant-
sized telescopic tin of Half & Half is shown in action,
surrounded by pipes carved to represent the Presi-
dents of the United States.

The Tobacco World

Survey of Tobacco Products Industries

HE cost of new machinery valued at $4,993,730
represented 62.7 per cent, of all expenditures
totaling $7,965,423 for plant and equipment
made by 251 establishments in the tobacco
products industries in 1939, according to a preliminary
report just issued by the Bureau of the Census. Ex-
penditures for plant and equipment were reported by
21 of the 35 establishments in the cigarette industry, by
170 of the 598 establishments in the cigar industry, and
by 60 of the 132 establishments in the tobacco and snuflp
industry. The 251 establishments reporting plant im-
provements constituted 32.8 per cent, of the total num-
ber of establishments, 765, reporting in the last bien-
nial census of manufactures.

In addition to expenditures for new machinery and
operating equipment, the 251 establishments reported
expenditures for new construction, major alterations
and other fixed plant and structures amounting to
$2,027,326, or 25.4 per cent, of the total ; expenditures
for plant and equipment acquired in a ^'used'' condi-
tion from other owners, and expenditures for land,
amounting to $728,849, or 9.2 per cent, of the total;
and unclassified expenditures amounting to $215,518,
or 2.7 per cent, of the total.

The expenditures for plant and equipment an-
nounced by the Census Bureau cover only establish-
ments engaged in active production, and not those of
inactive establishments or of new establishments whose
plants were under construction during 1939 but not
completed and actually in use during the year.

Of the total value of products, $1,322,189,139 re-
ported by the 765 establishments covered in the Census,
the 251 reporting expenditures for plant improvements
accounted for $1,043,062,313, or 78.9 per cent.

Tobacco Industries Group

1939

765

Total number of establishments

Number of establishments reporting capital

expenditures for plant and equipment . . 251

Total value of products $1,322,189,139

Value of products of establishments report-
ing expenditures for plant and equip-

^ ment 1,043,062,313

Total expenditures for plant and equipment 7,965,423

Expenditures for new construction, or
major alterations of buildings and other

fixed plant and structures 2,027,326

Expenditures for new machinery and ope-

rating equipment 4,993,730

Expenditures for plant and equipment ac-
quired in a "used" condition from other

owners and expenditures for land 728,849

Expenditures, unclassified 215,518

Cigarette Industry

Per Cent.

of Group

Total

100.0

32.8
100.0

78.9
100.0

25.4
62.7

9.2
2.7

Total number of establishments

Number of establishments reporting capital
expenditures for plant and equipment . .

1 otal value of products $1

Value of products of establishments report-
ing expenditures for plant and equip-
ment

Total expenditures for piant and equipment

^expenditures for new construction, or

major alterations of buildings and other

nxed plant and structures

Expenditures for new machinery and ope-
rating equipment

Expenditures for plant and equipment* a'c-
quired in a "used" condition from other

Per Cent,
of Industry
1939 . Total

35 100.0

21 60.0

,037,747,517 100.0

826,221,860 79.6

4,877,392 100.0

owners and expenditures for land
^expenditures, unclassified

(1) Less than one-tenth of 1 per cent.

1,145,229
3,132,240

599,423
500

23.5
64.2

12.3
(1)

The cigarette manufacturing industry accounted
for the biggest share of expenditures for improvements
and expansion, $4,877,392. The cigar industry re-
ported plant and equipment expenditures of $1,576,082,
and the tobacco and snuff industry, $1,511,949.

Figures on plant and equipment expenditure were
collected for the first time by the Census Bureau in the
1940 canvass, covering 1939 operations in the tobacco
products industries. The establishments were asked to
report changes to capital account for new depreciable
assets at cost value. The data were supplied by the
manufacturers, on the total expenditures for plant,
equipment, and real estate during the year under three
detailed types :

1. Expenditures for new construction or major
alterations of buildings and other fixed plant and struc-
tures (buildings, docks, tracks, etc.), including ele-
vators, heating and ventilating equipment, etc., essen-
tially a part of buildings or other fixed structure.

2. Expenditures for new machinery and operating
equipment, including all new motors, lathes, punch
presses, cranes, automobiles, trucks, railroad rolling
stock, office fixtures, furniture, typewriters, billing ma-
chines, cash registers, and other movable equipment.

3. Expenditures for plant and equipment acquired
in a *'u8ed" condition from other owners, and expend-
itures for land.

The foregoing data were compiled by the Division
of Manufactures, Bureau of the Census, under direc-
tion of Thomas J. Fitzgerald, Chief Statistician for
Manufactures.

Separate tables giving data for the tobacco prod-
ucts industries as a whole, and for the cigarette, cigar,
and tobacco and snuff industries, separately, follow:

Cigar Industry

Total number of establishments

Number of establishments reporting capital
expenditures for plant and equipment . .

Total value of products

Value of products of establishments report-
ing expenditures for plant and equip-

'**^'*L •••••••■••••••••••••••••

Total expenditures for plant and equipment

Expenditures for new construction, or
major alterations of buildings and other
fixed plant and structures

Expenditures for new machinery and ope-
rating equipment

Expenditures for plant and equipment ac-
quired in a "used" condition from other
owners and expenditures for land

Expenditures, unclassified

Per Cent,
of Industry
1939 Total

598 100.0

28.4
100.0

170
$160,754,424

111,142,992
1,576,082

517,147
953,955

87,364
17,616

69.1
100.0

32.8
60.5

5.5
1.2

Tobacco (Chewing and Smoking) and Snuff Industry

Total number of establishments

Number of establishments reporting capital
expenditures for plant and equipment..

Total value of products

Value of products of establishments report-
ing expenditures for plant and equip-
ment

Total expenditures for plant anid equipment

Expenditures for new construction, or

major alterations of buildings and other

fixed plant and structures

Expenditures for new machinery and ope-
rating equipment

Expenditures for plant and equipment ac-
quired in a "used" condition from other

owners and expenditures for land

Expenditures, unclassified

Per Cent,
of Industry
1939 Total

132 100.0

60 45.5
$123,687,198 100.0

105,697,461 85.5
1,511,949 100.0

364,950 24.1
907,535 60.0

42,062 2.8
197,402 13.1

Foreign Markets and Crops

HE tobacco factories of Finland consume be-
tween eight and nine million pounds of leaf
tobacco annually, all of which must be im-
ported. Prior to the European war, the United
States supplied from 15 to 18 per cent, of this amount,
but in 1939 and 1940 American tobacco exports to Fin-
land dropped to less than a million pounds. The com-
mercial supply of leaf in Finland is supplemented by a
small domestic production of the Nicotiana rustica
family, a coarse dark tobacco grown by farmers for
tiieii own use, acco ruing to a report received m the
Office of Foreign Agricultural Relations. The extent
of the domestic cultivation is not known exactly, but
competent authorities believe that without the domestic
crop, the funds expended annually for imports would
be larger. Heretofore, many attempts to grow tobacco
successfully in Finland have been thwarted by the
short season, but the possibilities of domestic produc-
tion are now receiving unusual attention because of the
difficulty in obtaining tobacco from abroad.

Stocks of leaf tobacco on January 1, 1941, were
reported to be sufficient for only a few months. Sev-
eral qualities of leaf were exhausted so that some
brands of finished products were no longer available.
One of the two factories in Helsinki reported a leaf
supply sufficient only for a few weeks.

Attempts are being made to obtain leaf from the
Balkan countries as well as from the United States.
In the former case, however, efforts are hampered by
the war in Greece and in the latter, by credit difficulties.
Purchases from Greece and Turkey are financed
through a clearing system. Importation from the
United States is further handicapped by lack of ship-
ping space. In the allotment of available cargo space
on Finnish vessels calling at Petsamo, the only port
open to ocean-going vessels, preference is naturally
given under the prevailing circumstances to foodstuffs
and military supplies.

The hostilities in Europe have effected a complete
dislocation of Finnish foreign trade. Commerce has
practically ceased with the United Kingdom (Finland's
best customer), and with The Netherlands, Belgium,
and France — all important buyers of Finnish goods.
Trade with the United States and other overseas coun-
tries has declined sharply. Finland has therefore been
obliged to look elsewhere for markets for its lumber
and paper products, and for sources of leaf tobacco,
other raw materials, and foodstuffs.

The Finnish Government has recently concluded
commercial agreements with the Balkan countries and
with the Soviet Union, based upon reciprocal quotas
and the clearing system of payment. In the treaty
with Turkey, signed on November 29, 1940, the leaf
tobacco import quota was fixed at about 4.4 million
pounds, a quantity three times as large as any previous
annual tobacco imports from that country. Quota pro-
visions of the treaty with Greece are not reported, but
as Greece has been the principal source of Finland's
leaf supply, it may be assumed that the provisions are
important. Similar treaties with the Soviet Union and
Bulgaria fix annual import quotas of about 1.0 million
pounds from each country, and bring the maximum
total import quota (not including Greece) up to 6.6
million pounds, compared with an average annual im-
port of about 8.5 million pounds in prosperous years.
It is apparent, however, that although the aggre-
gate quotas are probably more than sufficient to supply
8

the leaf demand, Finland will not, for the present, be
able to obtain total requirements from the treaty coun-
tries, and some quantities may be supplied by the
United States.

The European war has had a marked effect on the
cigarette industry of Switzerland. Retail business is
less profitable, since the mobilization of the Swiss
Army has caused a shift in consumer demand to lower-
priced cigarettes. Moreover, the great obstacles con-
fronting the movement of raw nmterials have brought

diffipnlfips to thp imnorfpra nf inhfioori Ipqf Tlioi-o io n

good demand, however, for any tobacco leaf that can
reach Switzerland, particularly for American fire-
cured.

Italian interests are doing their utmost to replace
the American fire-cured types with their production
from American seed. There is already on sale in the
Swiss market a cigarette made largely from Italian
''Virginia-seed'' tobacco. Under the stress of the
Swiss industry being somewhat low on stocks, the time
for such substitution is propitious.

The spread of war has eliminated one supply
source after another. The invasion of The Netherlands
made tobacco of the Netherlands Indies unobtainable,
and hostilities between Italy and Greece have increased
the difficulties of importation from the Balkans. Manu-
facturers are doing everything in their power to con-
tinue importation, and it is understood that small quan-
tities of Kentucky and Virginia fire-cured have been
brought in recently.

General conditions in the tobacco-growing industry
of Java during 1940 were very unsatisfactory, accord-
ing to a report from the American consulate in Sura-
baya. The spread of war in Europe during the year
resulted in a blow both to the native and estate pro-
ducers, and not much hope is advanced for better times
so long as the war continues.

It is believed that no tobacco will be planted in the
Loemadjang district of East Java, in 1941. The natives
are now growing rice, maize, and cassava on former
tobacco lands and will probably continue to do so until
former markets in continental Europe are restored.

In Besoeki, no estate tobacco was planted in 1940,
and it is reported that none will be planted in 1941.
The estate crop in Besoeki amounts to about 35.3 mil-
lion pounds annually. The native crop in this region
often reaches 7 or 8 million pounds, but the 1940 har-
vest is estimated at approximately 5 million, most of
which is expected to be sold for local use in the manu-
facture of native strootjes and other cigarettes.

Loss of the European markets is reflected in the
decline in total tobacco exports from Java and Madura
in 1939 and 1940. Exports of tobacco in 1939 amounted
to only 52.9 million pounds, a decline of over 30 per
cent, compared with 1938; and in 1940 they dropped
further to 34.6 million pounds. French Indo-China
which normally uses basic quantities of Algerian to-
bacco, also absorbs small quantities of Krossok from
Besoeki at prices ranging from 5 to 6 florins per 100
kilograms (1.2 to 1.4 cents per pound). It is expected
that the Besoeki exports to French Indo-China will
increase m 1941, owing to the increasing difficulty in
obtaining tobacco from Algeria. Swiss tobacco inter-
ests recently purchased about half a million pounds of
Rembang tobacco to be shipped to the United States

{Continued on page IS)

The Tobacco World

Cigar§ are the
most pleasurable
and economical
form of smoking.

BAYUK BULLETIN

Devoted to the
best interests
of the men who
sell cigars*

first Issued 1929

APRIL, 19il

Prepared twice a month

PHULOFAXI Alibi-e-tis!

(The Retailer^s Friend)

SAYS

A little late in report-
in er that sale of Christ^
mas cigars packed 50
in a box, was greater
in 1940 than in pre-
vious years.
— 0 —

Some salesmen know more about
their competitor's product than they
do their own. Did I say "salesmen"?
— o —

C. K. M., a progressive jobber,

writes "that each year right after

Christmas I make record of sales of

each product featured for Christmas

. . . trade reaction . . . possibihties

of greater or lesser sales for the next

Christmas ... I make notation of

anything in connection with each

product while fresh in my mind, and

this information, I find, is invaluable

in guiding my purchases and amount

of effort for the following Christmas

business". Very worthy idea, says

Phil.

— 0 —

When things don't break just as
they should, the first step is to ask
ourselves if we are planning and
working as we should.
— o —

"Going to a N. A.T.D. Convention
is like going to a business school",
so said a jobber already rated a
success. What greater compliment
could be paid the N.A.T.D.?
— o —

He said, "This February has one
day less than last February . . .
guess I'll have a decrease". The
salesman said, "Gee, one day less
this February than last February
• • : man, I am GOING TO GET
an increase anyhow!"
— o —

"I've got 562 customers and I've
got 12 really making an effort to
SELL CIGARS BY THE BOX.
J>Jme have been and are building up
a nice box trade and the other three
just a trifle discouraged. Before I am
^nru, I'm going to have at least 50
01 my customers enthusiastically
conscious of CIGARS BY THE BOX
sales opportunity".

Thanks, L.C.B.-you're building
,? ^business-not merely talking
about It. Big success to you, Larry

by Frank Trufax

TO OUR READERS:
Since reprinting the Frank Tru-

book form some years ago, the
Bayuk Bulletin has had numerous
requests for one Trufax letter in
particular, entitled "Alibi-e-tis".

''This subject of salesmen's ali-
bis has never been more timely
than now", these requests point
out. "With business conditions
changing so rapidly, with so
many new factors coming to the
forefront, it is all too easy for
some salesmen to make and
accept excuses — in other words
develop a chronic case of "Alibi-
e-tis' when actually the fault for
lack of top performance lies right
on the salesman's own doorstep".

The Bayuk Bulletin heartily
agrees that 1941 is no time for
"Alibi-e-tis", and is glad to re-
publish here the first half of
Frank Trufax 's well-known letter
on the subject. The second part
will follow in our next issue.

C?3^

D.B.I.

*iKl:'!?£2.?.^^K CIGARS INc/pfci/a^
**•" **/ finm cigara since 1897,

Alibi-e-tisI What is it?

Alibi-e-tis is a dangerous, destruc-
tive disease that chiefly confines its
wicked work to the folks in the sell-
ing game and in its virulent form
renders them non-coms in the battle
for business.

Most of us have it, but won't
admit it, and the funny thing about
AHbi-e-tis is that until we confess its
existence with us, there is no cure.

The symptoms are easily recogniz-
able wherever post-mortems are be-
ing held over a sale that went dead.

Lend your ear to this.

"/ tell you, Mr. Boss, it can't be
done. The trade is loaded to the
guards with goods; the roads are bad
and the farmers are not buying; my
territory never would warm up to
that style packing — in fact, condi-
tions are so strongly against the
proposition that it is useless to think
of putting it over."

Did you ever have to listen to— or
punish some other listener with—
that Une of chatter? Well, that's
Alibi-e-tis.

Are you getting the drift of the
diagnosis of this disease?

Just as soon as we run up against
a selling snag, how quick we are to
blame it on the territory; on the
jobber; on the retailer; or on every
other factor but one, and that — the
vital factor.

When the sale goes over, we want
the credit, because we are salesmen.

When we fall down, we are still
salesmen (emphasis on the "still");
but, it wasn't our fault 'cause ''con-
ditions were against us."

"Conditions** against you? Rot!
You against conditions is the way to
look at it. Be bigger than any condi-
tion. It's up to you to climb over
conditions. Without resistance, there
is no eflficient effort and without ef-
fort, we stagnate into Order Takers,
the original breeders of Alibi-e-tis
and the outcast relatives of real
salesmen.

You*re a salesman and your big
idea is to sell goods whether condi-
tions are for or against you. Irre-
spective of conditions, the point is
not that there is always a way to
make a sale so much so as there is
always some one who can, and if
you don't and blame it on Condi-
tions, man, you've got Alibi-e-tis.

It*s a terrible thing, this Alibi-e-tis,
because very frequently it distorts
our mind to such an extent as to
make us feel that conditions really
did kill the sale.

Set the stage for this scene. A
dealer. A salesman. A logical propo-
sition. Sample displayed on counter.
Opening remark by the salesman —
"Well, Mr. Buyer, what do you
think of it?"

Then comes the "thunder of si-
lence" and the "lightning of rejec-
tion" from the dealer, and the sale
is crashed.

On an approach like this, the open-
ing remark is usually the closing
remark, and then follows the bur-
ial service — "He told me he didn't
think it would sell and turned me
down cold."

Why should the buyer be obliged
to think of the selling possibilities of

the proposition? He didn't tell your
Boss to get it up. Why ask him what
he thinks of it? Why not right off the
reel, tell him what you know about
it? Instead, if on the dealer's snap
judgment of three seconds he says
"nothing doing," bing-bang back in
the sample grip and another calam-
ity caused by Conditions.

Can*t you see that had this sales-
man gotten ready to make a sale,
the sale would have been ready for
him? But, no — on his hit-or-miss
policy, he's a salesman when he hits
— and Conditions do the pitching
when he misses! That guy's got
Alibi-e-tis and doesn't know it, and
until he does he's out of luck in find-
ing out why he's not in luck.

Alibi-e-tis must not be confused
with Loaf-e-tis, as the latter is far
less insidious in spreading its fangs
of fooUshness in the system of a
salesman.

Loaf-e-tis deadens a desire for
worthwhile work, but Alibi-e-tis
absolutely creates a wish to perform
useless labor. Prove it? Sure.

Yours truly,

(To be continued)

PhiUies

Bayuk Ribbon
Mapacuba

Charles Thornton
Prince Hamlet

BAYUK BRANDS BUILD BUSINESS

^Two^Fisted^^ Jobs

demand
""Two-Fisted'' Men

,^nd ''Two^Fisted'' Men
demand El Producto

Hard work*s best friend is a pocketful of
El Producto to take off the day's rough edges.
And a line-up of El Producto sizes will increase
your high grade business. Give your customer
the chance to give you his
answer in a quality pur-
chase when you ask, "What ^ U ^ / *T. r llT
size, please?" CttJO^W*'^

ELPUHKTO

Give

PRIORITY to

KING
EDWARD

A good cigar is an important muni-
tion of comfort during these trying days.
And King Edward, America's most pop^
ular cigar, is in greater demand than ever
simply because it's the biggest money's
worth ever offered.

Stock King Edwards . . . keep them on
top of the counter. Profit
from the increasing demand.

gi^'^ The handy pocket'Size

TBH'PACK

is a favorite with out-
doomnen and men in the
armed services. Increase
your unit sales with the
fast'selling King Edward

TEN-PACK

JNO. H. SWISHER & SON, Inc.

C i-cJ) \/ci)n(/cRnt>V)N lACKSOWlLLL. ILORIDA

10

SUMATRA LEAF MARKET

NEW addition to the group of commodity ex-
changes in New York, a market for American-
type Sumatra tobacco, will take up headquar-
ters in the **free trade zone'' on Staten Island
in April. According to Carel Goldschmidt, one of the
brokers who is responsible for the establishing of the
market, a building equipped with humidifying ap-
paratus and special lights is now being constructed in
the foreign trade zone to house the exchange.

Before the war in Europe began, trading in
Sumatra leaf was done in Amsterdam, but in March of
last year it was decided to conduct trading in Sumatra
and a market was set up in Medan. But, since the most
of the American-type leaf grown in the Indies is used
in the Western Hemisphere, it was decided to move the
market for this particular type to New York.

The Netherlands Indies Produce Corporation, an
American-owned house, will import the tobacco and
will look after the interests of the growers. Mr. Gold-
schmidt and Lodewyk Jiskoot, formerly connected with
two large tobacco-brokerage firms in Amsterdam and
experts in the Sumatra product, will maintain the mar-
ket on Staten Island jointly, but they will act as com-
mission brokers independently of each other. The
employment of such experts in the transactions is
necessary, since the tobacco must be sampled and
graded by one who is familiar with it.

Although it has no financial interest in the tobacco
itself, the Dutch East Indian Government will be pro-
vided with dollar credits in the United States through
its sale. The growers in Sumatra will be paid by the
government in guilders, and the government in turn,
will take title to the dollar balances established here.
These credits will be used for the purchase of Ameri-
can commodities, part of which will consist of arma-
ments. In this way the government has a certain in-
terest in the sale of the tobacco and, although no official
control will be undertaken, it is understood that the au-
thorities in Sumatra will see to it that shipping space is
provided.

The tobacco to be sold here represents about 10
per cent, of the entire Sumatra crop of 130,000 bales
of 175 pounds each. If the tobacco is sold at about $2
a pound— it has fluctuated between $1.50 and $2.50—
it will represent a net to the growers of $4,550,000, or
approximately 8,000,000 guilders at the last exchaiige
quotation available. There is in effect, however, an
import duty of $1.50 a pound.

The possibility of the market remaining here per-
manently was described as likely by a representative
of the Netherlands Indies Produce Corporation. He
said that, since the United States and South America
consume almost all of the 13,000 bales of American-
type leaf grown in Sumatra, the market may **take
root ' ' here. Moreover, this is a convenient shipping
point for the part of the crop which is sent to Europe
—at this time only those neutral countries in Europe
which have not been affected by the British blockade.

Sumatra tobacco is used by cigar manufacturers
as a ^Svrapper'' leaf. About four months' supply is at
present stored here.

Since the Sumatra tobacco forms only a small
part of the cigar and it is not, therefore, needed in
such large quantities, sales are not made on a minute-
to-minute basis as they are in American markets. The
quahty factor is stressed in the sales, and the * inscrip-
tion" method of bidding is used. In this way prospec-
tive buyers are given an entire week to examine sam-

The Tobacco World

nles of the baled leaf in the specially lighted rooms
under proper conditions of humidity. Sealed bids for
separate lots are submitted; these are opened once a

^gglj in this case on Friday — and the tobacco is sold

to the highest bidder. This method was used for fifty
years in Amsterdam and was found to be the most sat-
isfactory procedure.

Java tobacco will also be liandled at the new mar-
ket. It is of a lower quality than the Sumatra and is
not used to a great extent in this country. Staten
Island will be used as a reshipping point for exports
to Europe, South America and (^anada, which take the
oreater part of the Java leaf.

BAYUK SALES AND PROFITS INCREASE

Bayuk Cigars, Inc., for 1940 reports net profit of
$4.78 per share on the company's common stock,
against $4.33 per share for the year 1939. The profit
thus earned is after reserves for all taxes, including
normal and excess profits taxes, as separately itemized
in the profit and loss statement. In 1939, there were
no excess profits taxes. The reserves for normal in-
come taxes for 1939 totaled $482,849.94, equivalent to
$1.23 per share of conmion stock, whereas the reserves
for normal income taxes and excess profits taxes for
1940 totaled $831,404.97, equivalent to $2.12 per share
of common stock. The increase for such taxes for 1940,
over 1939, is $.89 per share of common stock. Sales
for 1940 were $1,432,989.04 greater than 1939.

In commenting on the annual report to stockhold-
ers, A. Jos. Newman, president, stated that the sale of
Phillies, Bayuk 's featured brand, had increased each
year over the preceding year for the last eight years,
and the average annual increase for the past two years
lias been in excess of 50,000,000 cigars.

Mr. Newman pointed out that one of the most
pleasing phases of the company's continued progress
is the fine spirit of friendliness, good will and coopera-
tion that exists between the company, its distributors
and the retail dealers. He attributes a large part of
that progress to the policy of giving constant consid-
eration to problems of all factors of distribution, which
has resulted in building mutual confidence between the
company and its customers.

GLENN MILLER NOW ACTOR

Glenn Miller's ** Moonlight Serenade" broadcasts
originates Columbia's Hollywood station, KNX, be-
ginning Tuesday, March 25. The program, sponsored
by the Liggett & Myers Tobacco Company for Chester-
fields, is heard every Tuesday, Wednesday and Thurs-
day, 10-10:15 P. M.'over ninety-seven CBS stations.

The popular swing-and-sweet maestro plans to
spend at least two months in Hollywood. He will be
starred by Twoiitieth-Centurv-Fox in a now picture,
''Sun Valley."

The Newell-Eiuinet Company, Inc., liandles the
Chesterfield account.

BRIGGS

POPULAR LEADERS

By P. Lorillard Co.

UNION

LEADER

^^l^r^'^

tins

OLD GOLD

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Package

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FRIENDS
FOIL POCKET
POUCH \0i

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MURIEL Senators
Si

VAN

BIBBER

5 for \0i

ROCKY FORD
2 for Si

SENSATION
20 for 10^

BETWEEN THE AaS
^Si pkg. of ten

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BETUN, AROMATIZER. BOX FLAVORS, PASTE SWEETENERS

FRIES & BRO., 92 Reade Street, New York

CIGAR BOXES

Tel. Algonquin 4-9.32

Established 1875

"••ss:

ICIOMII

•97-641 KASTimST.
MKvr vomc

The sure test of a GOOD GIFT is that it must please and there is no other gift that pleases a

man more than a box of Manila cigars that's why fastidious men and women who wish to

please their loved ones prefer Manila cigars that come in various and exquisite holiday wrappings.

You, Mr. Dealer, be ready for the holiday rush by buying your supply of Manilas now.

JFor particulars about Manilas write to

THE PHILIPPINE TOBACCO AGENCY

2362 Massachusetts Avenue, N. W., Washington, D. C.

^Uril, 1941

II

Leiw COUPON

-neoi

IfBU

ir«ct

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Mr. Dealer:

FOUR EXTRA COUPOMS

Le packed in each carton of Raleigh plam
el' Save these valuable coupons for cash or

one of the seventy luxury premiums.

the

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UNION MAM

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&::XBS coast to-coast networ

SIMUIATID MARL NICKLACI...

100 roiiponji. Ask the B & W sales-
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all the premiums you can save for.

STOCKS OF LEAF TOBACCO

TOCKS of leaf tobacco owned by dealers and
manufacturers in the United States and Puerto
Rico on January 1, 1941, total 2,988,187,000
pounds compared with 2,713,959,000 pounds on
January 1, 1940. Total stocks were 271,277,000 pounds
higher than on October 1, 1940, and 274,228,000 pounds
higher than on January 1, 1940.

Stocks of fiue-cured tobacco were reported as
1,625,463,000 pounds on January 1, 1941, around 243,-
000,000 pounds higher than on October 1, 1940, and
about 188,000,000 pounds higher than on January 1,
1940. Stocks of Type 11 on January 1, 1941, were re-
ported as 598,682,000 pounds ; Type 12 as 590,369,000
pounds ; Type 13 as 307,947,000 pounds ; and Type 14
as 128,465,000 pounds.

Fire-cured stocks of tobacco of all types were re-
ported as 122,195,000 pounds on January 1, 1941, com-
pared with 115,858,000 pounds on January 1, 1940.
Total stocks were about 10,000,000 pounds^ lower on
January 1, 1941, than on October 1, 1940. Virginia
fire-cured. Type 21, stocks were reported as 28,330,000
pounds; Type 22 as 69,011,000 pounds; Type 23 as 24,-
356,000 pounds ; and Type 24 as 498,000 pounds.

Stocks of Burley were reported as 738,562,000
pounds on January 1, 1940, about 75,000,000 pounds
higher than on October 1, 1940, and around 61,000,000
pounds higher than on January 1 a year ago. South-
ern Maryland tobacco. Type 32, stocks were reported
as 40,475,000 pounds compared with 35,041,000 pounds
on January 1, 1940. These stocks during the pei-iod
October 1, 1940, to January 1, 1941, decreased about
5,000,000 pounds.

One Sucker stocks on January 1, 1941, were 29,-
974,000 pounds or about a million pounds higher than
the previous quarter of October 1, 1940. Green River
stocks reported as 29,469,000 pounds were about 6,000,-
000 pounds higher than a year ago. Stocks of other
types on January 1, 1941, were as follows: Virginia
sun-cured, 2,936,000 pounds; Eastern Ohio, 814,000
pounds; Perique, 1,050,000 pounds; other miscellane-
ous domestic, 893,000 pounds; and foreign-grown
cigarette and smoking tobacco (Turkish and other)
101,733,000 pounds. h

CIGAR LEAF TOBACCO

Stocks of American-grown cigar-filler types
amounted to 146,454,000 pounds on January 1, 1941
an increase of about 6,000,000 pounds ovei' the 'stocks

12

of January 1 a year ago. Type 41, Pennsylvania Seed-
leaf stocks, were reported as 79,130,000 pounds; Type
42, Gebhardt, 17,504,000 pounds; Type 43, Ziimner,
7,548,000 pounds; Type 44, Dutch, 7,548,000 pounds;
Type 45, Georgia and Florida sun-grown, 2,132,000
pounds ; and Type 46, Puerto Rican, 25,756,000 pounds
in Continental United States and 6,836,000 pounds on
the island.

The cigar-binder type stocks were about 12,000,-
000 pounds higher on January 1, 1941, than they were
January 1, 1940. Total binder type stocks were re-
ported as 116,979,000 pounds. Type 51, Connecticut
Broadleaf, stocks were 24,271,000 pounds; Type 52,
Connecticut Havana Seed, 22,704,000 pounds ; Type 53,
New York and Pennsylvania Havana Seed, 2,560,000
pounds; Type 54, Southern Wisconsin, 36,065,000
pounds; and Type 55, Northern Wisconsin, 31,379,000
pounds.

Shade-grown wrapper stocks were reported on
January 1, 1941, as 15,322,000 pounds, a decrease of
slightly over half a million pounds from the stocks of
January 1, 1940. Connecticut Shade stocks were 10,-
746,000 pounds, and Georgia and Florida Shade 4,576,-
000 pounds.

The foreign-grown cigar leaf tobacco stocks in the
United States on January 1, 1941, consisted of 7,139,-
000 pounds of Cuba (Havana) tobacco, 2,435,000
pounds of Java and Sumatra, and 6,189,000 pounds of
Philippine Islands (Manila) tobacco.

NEW LORILLARD DIRECTORS

At the annual meeting of stockholders on March
11th, the following were elected directors of P. Loril-
lard Company: Edgar S. Bowling, John J. Driscoll,
J. Strother Freeman, James A. Glascock, William J.
Halley, Frank Hopewell, George H. Hummel, James
T. Keel, Herbert A. Kent, Buford Scott, Jacqueliii P.
Taylor, Todd Wool, and George D. Whitefield.

At a board of directors' meeting that followed the
annual meeting, G. H. Hunmiol was reelected president,
G. D. AVhitefield was reelected executive vice-president,
E. S. Bowling and H. A. Kent were reelected vice-
presidents, Todd Wool was newly elected a vice-presi-
dent and also elected to succeed'himself as secretary,
W. J. Halley was newly elected vice-president and
treasurer.

^ The following were all reelected: L. E. Clemens,
assistant secretary and assistant treasurer; T. L.
Perkins, assistant secretary; Sidnev Kellv, auditor;
G. H. Smith and E. C. Hunter, assistant auditors, and
b . vV eiske, cashier.

The Tobacco WoS

MODEL TOBACCO Presents

one of radio's outstanding hits

"TH^ GAY NINETIES"

You And Ail Your Customors Will Lik* It
Coast to Coast Evory Monday Night

on Columbia Broadcasting Systom

FOREIGN MARKETS AND CROPS

(Continued from page 8)

for storage and re-export to Switzerland when trans-
portation facilities become available.

The import trade in tobacco, on the other hand,
was maintained well, due principally to the fact that
most of the imports originate in the United States.
Imports of leaf tobacco from the United States were
more than doubled in 1940, amounting to approxi-
mately 3.6 million pounds. There was some decline in
the imports of cigarettes and cigars.

The 1941 tobacco crop of Bahia, Brazil, is soon to
be harvested from an area estimated by the Tobacco
Institute of that State to be between 60,000 and 75,000
acres, according to a report from the American con-
sulate in Bahia. The Institute estimates that the har-
vest will be about 50 million pounds, compared with
approximately 40 million in 1940.

LORILLARD 'S NEW PROGRAM

The P. Lorillard Company now sponsors '^Record
of the Day,'' a thrice-weekly morning program of tran-
scribed music, on WABC in the interest of Old Gold
cigarettes. The series is heard at 8:20-8:25 A. M.
Monday, Wednesday and Friday on Columbia's key
station in New York.

The P. Lorillard Companv also advertises Sensa-
tion cigarettes on the West Coast through two Colum-
bia Pacific Network series— '^ Talk Your Wav Out of
This One " and ^ ^ Don 't Be Personal. ' '

The new WABC series features records of the
nation's current popular song hits. J. Walter Thomp-
son Company handles the WABC account.

B & W BROADCASTS NEWS

Paul Sullivan is sponsored Mondav through Thurs-
day by the Brown & AVilliamson Tobacco Corporation
in the interest of Raleigli cigarettes. His direct, in-
telligent style of broadcasting news catapulted him
into national prominence, after experience as a local

nnrrwPT?'it''^.^^^ ^^^^^^^ ^^^ station in St. Louis,
and WHAS, CBS station in Louisville.

tho d ^i^>"^^iuipped blood transfusion unit, first of

to %m T ^^'^ ^^'''^'''^ ^^^^t^«' ^^^^« been donated bv
BHfl • ^'^^^^^e shop of Alfred Dunhill, to assist

fires ov r .^"^^^•■^'^^"^y I'^lH^f <n-ising from air .aids,
nies, explosions and the like.

SPRUCE LUMBER

for CIGAR BOXES

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

It's Brighter
It's Lighter
It's Better

Uptegrove Lumber Co.

Cigar Box Lumber for 67 years
15 Washington St. Newark, N. J.

EstablUhcd 1886

"BEST OF THE BEST"

Maaaffaetured

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keo West, Florida

AUTOKR AFT

CIGAR BOXES

Boile Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP,

Lima, Ohio
Chicago, 111.
Detroit, Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa,

Wheeling, W. Va.

J

li

Tobacco Merchants' Association

-^ . • D 341 Madison Ave.

Registration oureau, new york city

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

. . . ^< M w.n h<. made to members of the Tobacco Mcr-

chants' Association on each registration. n-ressitates the reporting of more

Dollar (?1.00) will be made. 11 '^^"^'^"f^^^" additional charge of Two Dollars
fgy;^?u'bS^mrdra*;^d\*o'a;rad"d^tl^ii^al\^ ($1.00) will be

^*^d?for every Ten (10) additional titles necessarily reported.

NEW REGISTRATION
WILLIAMSBURG:— 46,838. For all tobacco products. Registered
Mar^h 3 19ll by Philip Morris & Co. Ltd., Inc.. New York, N. \.

TRANSFERRED REGISTRATIONS
FORT SHELBY :-42,189 (Tobacco Merchants' Association of the
I J S ) For all tobacco products. Registered July 13, 19^1, b>
Garland Cigar Co., Detroit, Mich. Through mesne transfers ac-
quTred by r Mazer Sons Cigar Co., Detroit, Mich., and retrans-
ferred to J C. Winter & Co.. Inc.. Red Lion, Pa., on February 5,

LITERARY DIGEST:— 25,535 (United States Tobacco Jou/"al).
For cigars, cheroots, cigarettes and cigarros Registered May 1,
1902 by The Heitmann Kloet Co.. Dayton, Ohio, rhrough niesne
transfers acquired by J. Mazer Sons Co., Detroit, Mich, and re-
Ifansfefred to J. C. Winter & Co., Inc., Red Lion, Pa., on February

LA FAMA DE M ARCA :-32.228 (United States Tobacco Journal).
For cigars, cigarettes and tobacco. Registered October JU. IVUO,
by Schmidt & Co., New York, N. Y. Through mesne transfers ac-
quired by J. Mazer & Sons Co., Detroit, Mich., and re-transferred
t o T C Winter & Co.. Inc., Red Lion, Pa., on February 5, 1941.

DETROIT HAND MADE:— 38,991 (United Registration Bureau
for the Tobacco Industries), and 162,014 (U. S. Patent Office). For
cigars. Registered January 7. 1915, and November 28, 1922, re-
spectively, by The Mazer Cigar Co., Detroit. Mich. Transferred to
J C. Winter & Co.. Inc., Red Lion. Pa., on February 5. 1941.

MISS DETROIT:— 24,699 (Tobacco Leaf), and 164,906 (U. S. Pat-
ent Office). For cigars, cheroots and stogies. Registered February
3, 1903, and February 27, 1923, by H. & J. Mazer and Mazer Cigar
Mfg. Co., Detroit, Mich., respectively. Transferred to J. C. Winter
& Co., Inc., Red Lion, Pa., on February 5, 1941.

DIME BANK:— 39,102 (United Registration Bureau for the Tobacco
Industries), and 164,907 (U. S. Patent Office). For cigars, cheroots
and stogies. Registered March 23, 1915, and February 27, 1923, re-
spectively, by the Mazer Cigar Mfg. Co., Detroit, Mich. Trans-
ferred to J. C. Winter & Co.. Inc., Red Lion, Pa., on February 5,

1941.

FLOR DE MANUEL:— 191,148 (U. S. Patent Office). For cigars.
Registered November 4, 1924. by The Mazer-Cressman Cigar Co.,
Philadelphia, Pa. Transferred by J. Mazer Sons Cigar Co., Detroit,
Mich., successors to the original registrant, to J. C. Winter & Co.,
Inc.. Red Lion, Pa., on February 5, 1941.

COUNSELLOR:— 191,225 and 344,785 (U. S. Patent Office). For ci-
gars. Registered November 4, 1924, and April 6, 1937, by Mazer-
Cressman Cigar Co., Philadelphia, Pa. Transferred by J. Mazer
Sons Cigar Co.. Detroit, Mich., successors to the original registrant,
to J. C. Winter & Co., Inc., Red Lion. Pa., on February 5, 1941.

BURDICK'S COUNSELLOR:— 46,571 (Tobacco Merchants' Asso-

' ciation of the U. S.), for cigars and all tobacco products, and 309,302
(U. S. Patent Office), for cigars. Registered September 4, 1936,
and April 6, 1937, respectively, by Mazer-Cressman Cigar Co., De-
troit, Mich. Transferred by J. Mazer Sons Cigar Co., Detroit,
Mich., successors to the original registrant, to J. C. Winter & Co.,
Inc., Red Lion, Pa., on February 5. 1941.

CADILLAC:— 309,302 (U. S. Patent Office). For cigars. Regis-
tered January 9, 1934, by J. Mazer Sons Cigar Co.. Detroit, Mich.
Transferred to J. C. Winter & Co., Inc., Red Lion. Pa., on Febru-
ary 5, 1941.

Internal Revenue Collections for February

Source of Revenue 1941

Cigars $ 911,300.37

Cigarettes 47,014,254.84

SnufT 549,268.60

Tobacco, chewing and smoking 3.990.313.61

Cigarette papers and tubes 11 1,017.91

Leaf dealer penalties 1,41 1.48

14

1940

$ 900,677.53

39,488.569.78

566,020.12

4.268.908.13

122,903.22

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

^

<^^

ESSE A. BLOCK, Wheeling, W. Va President

VILLIAM BEST, New York, W. Y Chairman Executive Commiti

GEORGE W. HILL, New York, N. Y Vice-Presidi

GEORGE H. HUMMEL, New York, N. Y Vice-Presidi

S. CLAY WILLIAMS, Winston-Salem, N. C Vicc-Presidi

JULIUS LICHTENSTEIN, New York, N. Y Vice-Presidt

ASA LEMLEIN, New York, N. Y Treasur

CHARLES DUSHKIND, New York, N. Y Counsel and Managing Dire

Headquarters, 341 Madison Ave., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

HENRY J. PINNEY, Worcester, Mass PresicU

EDMUND C. DEARSTYNE, Albany, N. Y Vice-Preside

J. RENZ EDWARDS, Kansas City, Kan Treasii

JOSEPH KOLODNY, 200 Fifth Ave., New York, N. Y Secret

ASSOCIATIONS

BEN L. LASCriOW, 862 East Fifteenth St., Brooklyn, N. Y Presii,,

R. L. McCORMICK, 52 Klein Ave., Trenton, N. I First 'Vice- Presidenf

J. J. OLLENDORFF, 780 West End Ave., New York, N. Y. ..Executive Secretary
ALBERT FREEMAN, 25 West Broadway, New York, N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

ERIC CALAMIA, 233 Broadway, New York, N. Y Preside

JOHN MAUTE Vice-Presid*

CLIFFORD M. DAWSON Treasuf

MALCOLM L. FLEISCHER Secreti

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA,"
INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA Preside

THOMAS C. BREEN Treasi _

SAMUEL BLUMBERG General Counsef

Executive Committee— Alvaro M. Garcia (Ex-officio), Thomas C. Breen, Harley W^

Jefferson, D. Emil Klein, Walter E, Popper, Harry C. Carr, and Arthur

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion, Pa Preside

T. E. BROOKS, Red Lion, Pa Vice-Presi^

ARTHUR S. ZIEGLER, Red Lion, Pa Treasuf

RUSSELL S. STINE, Red Lion, Pa Secretal

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

JOSE P. PEREZ, Tampa, Fla Preside

ARMANDO RODRIGUEZ, Tampa, Fla Vice-President

JOHN LEVY, Tampa, Fla Treasurer.

FRANCIS M. SACK, Tampa, Fla Secretary,

INDEPENDENT RETAIL TOBACCONISTS'

ASSOCIATION

BERNARD SCHWARZ Preside

ERIC CALAMIA First Vice-Presidei

BENJ. FRIEDMAN Second Vice-President

JOSEPH GROSSMAN Third Vice-President

ARTHUR W. TONES Financial Secretaryj

LOUIS GROSSMAN Treasurer^

BERNARD BERNSTEIN, 42 Broadway, New York, N. Y Secretary^

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC

JOSEPH FRIEDMAN Presidcnti

JACK EDELSTEIN Treasurer]

LEO RIEDERS, 3800 Broadway, New York, N. Y SecretarjfJ

"^Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based on
manufacturers' returns of production)

Month of December

Product 1940

Plug 3,681,357

Twist 456.316

Fine-cut Chewing 380,070

Scrap Chewing 3,196,397

Smoking 15,227,235

Total 22,941,375

+
+

Increase or Decrease

Quantity Per Cent

81,866 2.18

7.557 1.6«

56,761 17.5^

719 0.02

806,253 5.59 1

+ 789.424

3.56

Twelve Months Ending December 31st

Increase or Decrease

Product 1940 Quantity Per Cent

Plug 48.758.317 — 2.504.479 4.89

Twist 5.601,343 — 131,434 2.29-

Fine-cut Chewing 4,737.032 + 35,930 0.76^

Scrap Chewing 42,362,599 -f- 1,011,607 2.45

Smoking 205,113,393 + 2,824.280 1-40

Total 306,572,684 -f 1,235,904 0.40

♦The production figures are in pounds, and arc subject to revision
until published in the annual report of the Commissioner of Internal Rev-
enue.

The Tobacco Worli

LIBRARY

KBCBIVBO

MAY 5 1941

mXT

1941

ment of Agricuiturt

A

ESTABLISHED
1881

MARCH WAS GOOD
TOBACCO MONTH

United States tobacco products had a
field day in March, with increases in
withdrawals registered in each and
every class of cigars, in cigarettes, in lit-
tle cigars, in snufif, in chewing and smok-
ing tobacco. Little cigar withdrawals
alone detracted from a perfect score.

Cigar gains ranged from 6.42 per cent,
in Class A to 39.06 per cent, in Class E,
the gain for all classes being 8.26 per
cent.

Cigarette withdrawals rose 19.26 per
cent.; little cigars 20.38 per cent.; snuff
1.69 per cent.; chewing and smoking to-
bacco 2.67 per cent.

.iK''i».

Paul Douglas

POPUIAR
RADIO ANNOUNCER

Copyright 1941. Liggett & Myers Tobacco Co

HoBART B. Han KINS — Editor

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

MAY, 1941

No. 5

EDICATED to national unity, the annual con-
vention and tobacco show of the Retail To-
bacco Dealers of America is expected to at-
tract tobacconists from all over the country to
the Hotel Pennsylvania, New York City, on May 15, 16
niid 17. The association aims to promote tobacco trade
betterment, pronmlgate fair practice standards, elimi-
nate burdensome tobacco taxes, stimulate constructive
trade leadership, improve merchandising technique, co-
ordinate and guide efforts to solve industry problems,
and strengthen the retailer's role in the national de-
fense program. It is anticipated that outstanding re-
tailers of tobacco and allied products, as well as lead-
ers from all branches of the industrv will attend. There
will be an attractive and colorful display of the mer-
chandise of producers of all tobacco products and allied
lines. As the connnittee points out, a sufficient reason
for all divisions of the industry to accord every possi-
ble support to the continued growth of the organization
is had in its striving so that the retail tobacconists may
conduct their businesses in a manner that reflects high
standards of ethics, and with the greatest economy and
efficiency, thereby better serving the public. In other
words, you 're expected !

GAIN we remind you of Father's Day, to be
celebrated this year on June 15. Get ready for
in a big way. It is undeniable that the promo-
tion of Father's Day in the last few years has
created a new season for retailers, a season that com-
pares favorably with Christmas; a season that comes
at a time of the year when business stimulation is
needed; that brings traffic to stores in the first half of
the year, balancing the traffic at the end of the year
during the holiday season. Tobacco manufacturers,
distributors and dealers alike should put their best
efforts towards getting the most out of this annual
celebration.

N view of the discouraging market outlook in
Europe, it was expected that the 1941 acreage
of Canadian flue-cured tobacco would be re-
stricted, as in 1940, to two-thirds of the acre-
age grown by Ontario producers in 1939. The Ontario
Flue-cured Tobacco Marketing Association, however,
has recently decided to permit 100 per cent, of the 1939
acreage to be planted in Essex County this spring. In
other areas of Ontario Province, 75 per cent, of the
1939 flue-cured acreage, instead of 66.7 per cent, as
heretofore expected, will be allowed. The Quebec
Growers have no association, but their flue-cured acre-
age is relatively small, and, in view of market condi-
tions, they may decide to plant smaller areas this year.
Ihe 1941 area for Canadian hurley tobacco was recently
reduced by the Burley Marketing Association to 7960
acres, a 25 per cent, cut from the area allotted in 1940.

usually less than the allotment; only 9710 acres were
grown in 1940 out of an allotment of 10,613 acres.

ONSUMPTION of tobacco in Canada continues
at a high level. Canadian manufacturers used
about 50.9 million pounds of leaf tobacco in the
output of products during 1940, or an increase
of 16 per cent, compared with the average leaf con-
sumption during the four-year period ended in 1939.
Corresponding increases marked the consumption of
all tobacco products except chewing tobacco and snuff.
The 1940 withdrawals of cigarettes increased by 15.2
per cent.; cigars by 29 per cent; and smoking tobacco
by 19.7 per cent. Consumption of chewing tobacco de-
clined, and there was practically no change in snuff
consumption. Smoking tobacco and cigarettes repre-
sent about seven-eighths of the total consumption.

pTIIIN the last decade Canada has changed
from a deficiency to a surplus country in the
supply of leaf tobacco, which has adversely
affected United States exports. Canadian leaf
imports still consist chiefly of flue-cured tobacco from
the United States, but the volume has declined. Im-
ports of Turkish, although relatively small, have in-
creased during the last few years. Imports of manu-
factured tobacco from non-sterling countries were pro-
hibited in December, 1940; and regulations effective
February 28, 1941, permit the exports of leaf tobacco
from non-sterling countries only under special permit.

The burley

acreage

EGULATIONS authorize licensed manufactur-
ers, or customs-bonded warehouse proprietors,
{ to import under permit from non-sterling areas
and/or withdraw for consumption during 1941,
quantities not exceeding the following percentages of
the average quantities withdraw^n for consumption dur-
ing the three-year period 1938-1940: Bright Virginia
flue-cured, 66.7 per cent. ; dark fired, cigar binder, and
cigar filler, 75 per cent. ; Perique and Latakia, 100 per
cent. No restrictions apply to cigar wrapper, and spe-
cial consideration is given to any leaf tobacco for which
arrangements have been made in a prescribed manner
for payment in sterling. No burley, Turkish, or dark
air-cured tobacco may be imported, but unrestricted
removal from bonded warehouses, or use of these types
is permitted. Stocks of tobacco in Canada on Decem-
ber 31, 1940, were much higher than a year earlier, but
most of the increase was due to the fact that unsold
stocks in the hands of growers were not included prior
to September 30, 1940. As the 1940 crop was estimated
at only 60.3 million pounds, farm weight, it was prob-

actually planted in Canada is ably not much more than the 1940-41 consumption.

SetJ?^^^n« ^O^L^ ^"*- ^881) is published by Tobacco World Corporation; Hobart B. Hankins. President and Treasurer; B
secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued monthly ~
cents a copy; foreign, $1.75 a year.

S. Phillips, Vice-President; John Cleary,
^"°*<^''»P*»onS' available only to those engaged in the tobacco industry or trade. $1 00 a vear
Entered as second-class mail matter. December 22. 1909. at the Post Office. Philadelphia. Pa., under the Act of March 3. 1879.

Every Cigar Class Increased in March

In Fact, Gains Were General Among

All Classes of Tobacco Products

With Exception of Large Cigarettes

ACH and every class of cigars, little cigars,
cigarettes, snuff, chewing and smoking tobacco
— all showed increases in U. S. withdrawals

C4.X V^XJ.

XX t/lxxo > y^vLx , tAO \j\Jxi.X

pared to the same month last year, according to the
Supplement of the Tobacco Barometer of the Tobacco
Merchants Association of the United States. Large
cigarettes alone failed to join in the general rise. On
the other hand, it was an off month for Philippine
Islands withdrawals, with not a plus sign in the list.
Puerto Rico products fared better, however, with gains
in cigars of classes B and C and the total, in cigarettes
and large cigarettes.

Cigars of all classes in the U. S. totaled 430,326,-
200, as compared to 397,490,431, an increase of 32,835,-
769, or 8.26 per cent. P. I. withdrawals totaled 14,426,-
740, as compared to 19,443,646, a drop of 5,016,906, or
25.8 per cent. P. R. withdrawals totaled 91,010, as com-
pared to 88,050, a gain of 2,960, or 3.36 per cent. Grand
total was 444,843,950, as compared to 417,022,127, a rise
of 27,821,823, or 6.67 per cent.

Class A cigars in the U. S. totaled 384,092,215, as
compared to 360,926,005, a climb of 23,166,210, or 6.42
per cent. Losses in both P. I. and P. R. withdrawals
reduced to class gain to 18,252,450, or 4.8 per cent.

Product March, 1941

Cigars :

Class A —

United States 384,092,215 +

Philippine Islands . . . 14,389,640 —

Puerto Rico 38,510 —

Total 398,520,365 +

Class B —

United States 3,445,525 +

Philippine Islands . . . 3,270 —

Puerto Rico 33,500 -f-

Total 3,482,295 +

Class C —

United States 39,884,612 +

Philippine Islands . . . 30,750 —

Puerto Rico 19,000 +

Total 39,934,362 +

Class D —

United States 2,656,115 +

Philippine Islands . . . 1,020 —

Puerto Rico

Total 2,657,135 +

Class E —

United States 247,733 +

Philippine Islands . . . 2,060 —

Puerto Rico

Total 249,793 —

4

Increase or Decrease
Quantity Per Cent.

23,166,210 6.42

4,909,920 25.44

3,840

18,252,450

4.80

609,638
4,180
5,850

21.50

611,308

21.29

8,453,338

8,516

950

26.89

8,445,772

26.82

536,992
980

• • •

25.34

536,012

25.27

69,591
93,310

39.06

23,719

8.67

Class B cigars in the U. S. totaled 3,445,525, as
compared to 2,835,887, an increase of 609,638, or 21.5
per cent. A P. I. drop of 4,180 and a P. R. gain of 5,850
served to increase the volume of gain to 611,308 and
to reduce the percentage of gain to 21.29.

Class C cigars in the U. S. totaled 39,884,612, as
compared to 31,431,274, an increase of 8,453,338, or
26.89 per cent. By virtue of a P. I. loss of 8,516 and a
P. R. gain of 950, the net increase for the class was 8,-
445,772, or 26.82 per cent.

Class D cigars in the U. S. totaled 2,656,115, as
compared to 2,119,123, a rise of 536,992, or 25.34 per
cent. A P. I. loss of 980 reduced this 536,012, or 25.27
per cent.

Class E cigars in the U. S. totaled 247,733, as com-
pared to 178,142, an increase of 69,591, or 39.06 per
cent. A precipitous drop in P. I. withdrawals, from
95,370 to 2,060, wiped out this increase, the net result
being a class loss of 23,719, or 8.67 per cent.

Cigarettes in the U. S. totaled 15,528,629,200, as
compared to 13,020,617,490, an increase of 2,508,011,-
710, or 19.26 per cent.

Little cigars were up 20.38 per cent. ; snuff 1.69 per
cent.; chewing and smoking tobacco 2.67 per cent.;
large cigarettes declined 48.05 per cent. Following are
the comparative figures :

Product March, 1941
Total All Classes:

United States 430,326,200 +

Philippine Islands . . . 14,426,740 —

Puerto Rico 91,010 +

Grand Total .... 444,843,950 +

Little Cigars:

United States 13,838,120 +

Philippine Islands ...

Puerto Rico

Total 13,838,120 -f-

Cigarettes:

United States 15,528,629,200 +

Philippine Islands ... 400 —

Puerto Rico 744,880 +

Total 15,529,374,480 +

Large Cigarettes:

United States 77,712

Philippine Islands ... ..!...

Puerto Rico 10,666 -f-

Total 87,712 —

SnuflF (lbs.):

All United States .... 3,260,069 +

Tobacco (Chewing and
Smoking) lbs.

United States 24,993,372 +

Philippine Islands

Total 24,993,372 +

Increase or Decrease
Quantity Per Cent

32,835,769

5,016,906

2,960

8.26

25.80

3.36

27,821,823

6.67

2,343,220

• ••••••■a

• •• a ••• • •

20.38

2,343,220

20.38

2,508,011.710

9,500

389,820

19.26

2,508,392,030

19.26

71,878

1,375

10,000

48.05

63,253

41.90

54,226
649,472

1.69
2.67

649,472 2.67
The Tobacco World

Cigarettes Up 6.6 Per Cent, in 9 Months

Other Gains in Fiscal Year to Date

Range from 0.98X for Snuff to

8.5% for Little Cigars in the U. S.

N the first nine months of the fiscal year, gains
ill TT. S, witlulrawals were registered in total
cigars and in each individual class except Class
E, in little cigars, in cigarettes, in snuff, in
chewing and smoking tobacco. In large cigarettes
alone, as in March, last month of the third quarter, was
there a decline in withdrawals. These are the high-
lights of the report embodied in the Supplement to the
Tobacco Barometer of the Tobacco Merchants Associa-
tion of the United States.

Cigars of all classes in the U. S. totaled 4,083,367,-
184, as compared to 3,964,136,408, an increase of 119,-
230,776, or 3.01 per cent. P. I. withdrawals totaled
134,814,736, as compared to 159,539,304, a drop of 24,-
724,528, or 15.5 per cent. P. R. withdrawals totaled
1,331,910, as compared to 1,341,700, a decline of 9,790,
or 0.73 per cent. Grand total was 4,219,513,820, as com-
pared to 4,125,017,412, an improvement of 94,496,408,
or 2.29 per cent.

Class A cigars in the U. S. totaled 3,635,168,070,
as compared to 3,536,014,095, a climb of 99,153,975, or
2.8 per cent. The P. I. loss in this class was 24,763,525,
or 15.59 per cent., and the P. R. loss was 109,240, these
combining to reduce the class gain to 74,281,210, or 2.01
per cent.

1st 9 Mos.

Product Fiscal Yr. 1941
Cigars:
Class A —

United States 3,635,168,070 +

Philippine Islands ... 134,036,715 —

Puerto Rico 704,410 —

Total 3,769,909,195 +

Class B —

United States 31,924,410 +

Philippine Islands ... 154,579 +

Puerto Rico 221,550 +

Total 32,300,539 +

Class C —

United States 383,687,496 -f-

Phihppme Islands . . . 283,682 -f-

Puerto Rico 403,550 -f-

Total 384,374,728 +

Class D —

United States 29,136,277 +

i hihppine Islands . . . 64,965 —

Puerto Rico 2,400 +

Total 29,203,642 +

Class E—

United States 3,450,931 —

Philippine Islands ... 274,785 +

Puerto Rico

"^otal 3,725,716 —

Increase or Decrease
Quantity Per Cent.

99.153,975

24,763,525

109,240

2.80
15.59

• ■ • • •

74,281,210

2.01

386,413
61,145
38,700

1.23

• • • •
■ > • •

486,258

1.53

17,880,358
10,659
60,550

4.89

• • • •

• • • •

17,951,567

4.90

2,004,039

177,881

200

7.39

• • • •

• • • •

1,826.358

6.67

194,009
145,024

5.32

• • a •

• • « •

Class B cigars in the U. S. totaled 31,924,410, as
compared to 31.537.997. an increase of 386.413. or 1.23
per cent. This was raised to 486,258, or 1.53 per cent.,
by a P. I. gain of 61,145 and a P. R. gain of 38,700.

Class C cigars in the U. S. totaled 383,687,496, as
compared to 365,807,138, an increase of 17,880,368, or
4.89 per cent. Here again plus signs predominated, a
P. I. gain of 10,659 and a P. R. gain of 60,550, bringing
the total for the class up to 384,374,728, as compared
to 366,423,161, for a gain of 17,951,967.

Class D cigars in the U. S. totaled 29,136,277, as
compared to 27,132,238, an increase of 2,004,039, or 7.39
per cent., which was reduced to 6.67 per cent, by a P. L
loss overcoming a P. R. gain.

Class E cigars in the U. S. totaled 3,450,931, as
compared to 3,644,940 for the only loss in U. S. cigar
withdrawals, a matter of 194,009, or 5.32 per cent.,
which was almost but not quite wiped out by a P. I.
increase of 145,024.

Cigarettes in the U. S. totaled 137,532,568,543, as
compared to 129,020,137,997, an increase of 8,512,430,-
546, or 6.6 per cent.

Little cigars gained 8.5 per cent.; snuff 0.98 per
cent.; chewing and smoking tobacco 1.48 per cent.;
large cigarettes dropped 40.41 per cent. The figures
follow :

48,985

1.30

1st 9 Mos.
Product Fiscal Yr. 1941

Total All Classes —

United States 4,083,367,184 -f

Philippine Islands ... 134,814,726 —
Puerto Rico 1,331,910 —

Grand Total .... 4,219,513,820 +

Little Cigars:

United States 115,911,812 +

Philippine Islands

Puerto Rico

Total 115,911,812 +

Cigarettes:

United States 137,532,568,543 +

Philippine Islands . . . 227,792 —

Puerto Rico 2,397,815 —

Total 137,535,194,150 +

Large Cigarettes:

United States 1,121,094 —

Philippine Islands . . . 780 —

Puerto Rico 107,785 —

Total 1,229,659 —

Snuff (lbs.):

All United States .... 28,283,595 +

Tobacco (Chewing and
Smoking) lbs.:

United States 229,113,123 +

Philippine Islands ... 12 -f

Total 229,113,135 +

Increase or Decrease
Quantity Per Cent.

119,230,776

24,724,578

9,790

3.01

15.50
0.73

94,496,408

2.29

9,078,616

8.50

• • • •

• • • •

9,078.616

8.50

8,512,430,546
493,748
460,045

6.60

« • ■ ■
• • ■ •

8,511,476,753

6.60

760,294

2,395

63,215

40.41

• • • • •

36.97

825,904

40.18

275,067

0.98

3,344,204
5

1.48

• • • •

3,344,209 1.48

5

Fire Opening Gun for Father's Day

HE opening gun of the consumer Father's Day
promotion was sounded early in April, when
over one hundred men and women represent-
ing many industries took part in the fifth an-
nual all-industry Father's Day luncheon at the Penn-
sylvania Hotel. The $25,000 publicity fund for 1941
was given impetus as a renewed home-stretch drive was
announced to begin today. The tirst contribution re-
ceived in the new compaign was that of $500 from the
•'Saturday Evening Post." Aivin Austin, executive
director of the National Council for the Promotion of
Father's Day, Inc., who presided at the luncheon, an-
nounced that volunteers had offered to help in the
home-stretch fund-raising campaign.

He gave a detailed account of the steps taken by
the Council to make Father's Day the success it has
become. He showed examples of publicity in news-
papers, magazines, network radio, city-wide celebra-
tions, organizations' tie-ins, motion pictures, public
personalities, religious, fraternal and other organiza-
tions. He outlined the commercial activities of the
Council also by showing the work done in local com-
munities with local Father's Day committees in every
city which secured local promotions along broad lines
as patterned by the Father's Day Council. He showed
all selling aids which the Council makes available to
the stores. This year 's poster has the slogan — ' ' Salute
Dad the American Way, Father's Day June 15th."
The illustration by McClelland Barclay carries out the
American colors, and the stars and stripes. This paint-
ing is reproduced in many sizes, units for store display
and for newspaper advertising.

Various hookups with Father's Day were de-
scribed, including window display contests by the Ee-
tail Men's Wear Council of New York, and others. The
Paramount motion picture short, ''The Forgotten
Man," featuring Kobert Benchley, was previewed at
the luncheon. E. T. McLoughlin, of ''The Saturday
Evening Post," told of the magazine's plan to hook in
with the picture and with Father's Day through retail-
ers, and also answered a call by Mr. Austin for some-
one present who would match the largest 1941 contri-
bution thus far received, by donating $500 to the
Father's Day fund on behalf of the magazine.

P. G. Hinerfeld, of the Postal Telegraph Co., dis-
closed that each of the 2,500 offices of the company
would also hook in with the Benchlev picture, and
would in addition offer one window f o/ the display of
merchandise from local retailers suitable for Father's
Day gifts. He added that a service would also be
offered to men in Army Camps wherebv, at a nominal
service cost, the telegraph company would buy anv gifts
selected by the Army man and deliver it in time for
Father's Day.

The short will be shown in the 1,400 Paramount
theatres all over the country some time from June 1 to
June 15 and that cooperation with 10,000 to 12,000
other theatres in showing the short is expected. Tlie
short depicts Benchley as a father, whose part in his
daughter's wedding is merely to give the bride away.
It then flashes back to the equally unimportant part he
plays in the period before the wedding, and in the
period just after the wedding when his younger daugli-
ter first introduces him to a young mail who comes^to
call.

Those at the luncheon were given huge blue but-
tons with two blue ribbon trailers. The buttons, manu-
factured by the Philadelphia Badge Co. of Brooklyn,
announce "Father's Day, June 15." They are to be
worn by retail clerks to remind customers of the date.
Those present expressed unanimous agreement with a
resolution presented by Isadore Innnerman, on behalf
of the associated Men's Wear Retailers of New York,
to the effect that the National Father's Day Council,

mCCcIuoU Ux iio xiii^jyJ L Ltxxxv O^ t V Ai^V/O iii iiitlxvxxi^ X t«ijiiv>x &

Day a business success, be permanently continued.

The resolution paid tribute to the excellent w^ork of
Alvin Austin, director, and to Mr. Buckingham; John
Wyckoff Mettler, of Interwoven Stocking Co., and
William H. Weintraub, who have served as executive
officers. Appreciation was also expressed for the work
of industry chairmen and trade papers for their part
in making Father's Day a success.

KOLODNY VISITS TAMPA

At a dinner at the Hillsboro Hotel, Tampa, Joseph
Kolodnv, executive secretary of the National Associa-
tion of Tobacco Distributors, presented on behalf of
the N. A. T. D. a bronze plaque to Julius B. Annis, of
Gradiaz, Annis & Co., the cigar manufacturing com-
pany which was awarded the prize for the "most orig-
inal" exhibit at the ninth convention of the organiza-
tion at Chicago in January.

The memorable nature of the occasion was at-
tested by the attendance, not only of cigar men, but
also many others prominent in the connnercial, bank-
ing, professional and club life of the city.

Mr. Kolodny was joined in his visit to Tampa by
Alex Schwartz of the Keilson Cigar Company of Cin-
cinnati, who is a vice-president and director of the
N. A. T. D. It was their initial visit to the southern
cigar producing center and they took occasion during
their brief sojourn to discuss with the factory men
some of the mutual problems of the cigar manufac-
turers and distributors.

NEW WHITE OWL CAMPAIGN

The General Cigar Co. announces that starting
Tuesday, a new White Owi advertising campaign
broke in thirty-two newspapers in twenty-four metro-
politan centers.

The theme of the drive centers around the head-
line, "Things Have Changed a Lot Since 1929— And
So Have White Owls." The copy compares the im-
provements in the cigar with those of fashions, motion
pictures and automobiles. The campaign will tie in
with the firm's radio program. J. AValter Thompson
Co. is the agency.

GRANTED PACKAGING PATENTS

In announcing the recent granting of two patents,
Nos. 2,210,734 and 2,218,691, the first on intermittent
drives for wrapping machines and the second on a
method for wrapping cigarette packages with easy
opening tapes, George A. Mohlman, vice-president of
Package Machinery Co., said today that they brought
the total of the company's active patents to 178. The
patents cover packaging machinery and wrapping
methods in the food, drug, tobacco and allied fields.

The Tobacco World

Cigars are the
most pleasurable
and economical
form of 8™®^'°^*

BAYUK BULLETIIN

Devoted to the
best intereatt
of the men who
sell cigars*

first Issued 1929

MAY, 19U

Prepared twice a month

PHULOFAX

(The Retailer^s Friend)

SAYS

Snrino- fpVPr is
^^j^»» — 0 — . -- —

ping up on us but let's
not permit it to get us
out of step.

— o —
How are all the win-
dow screens and screen doors? Any
need a little patching or painting up?
While we're at it, better give a look-
see to our awnings.

He said to the dealer, "You know,
Frank, I guess you get almost all my
cigar money ... I like to buy cigars
in your store because your cigars are
always fresh and I enjoy them so
much more."

In telling Frank why he buys in
his store, Mr. Smoker also tells why
he doesn't buy in the store where
cigars are not "nice and fresh."

A typewritten letter brought this
to PhU from T. C. K., a cigar sales-
man in the Middle West :

"You know I've been a little hes-
itant in suggesting to some of my
customers that they should tidy-up
the appearance of their showcases. . .
I thought they might resent it. As a
matter of fact, lots of dealers just do
not realize how unattractive their
cases really do look. Well, anyhow,
I tackled a hardnut dealer last week.
I asked him very politely if he'd step
in front of the case for a minute and
just look at the unappetizing appear-
ance of it. I didn't say a word— but
^ did. He said to me, 'Well, it sure
doesn't look so hot, does it?'

"Then I said to him, 'So that you
can do MORE BUSINESS AND MAKE
MORE MONEY out of your store, do
you mind if I tidy-up and rearrange
your case a Httle?' 'No, go to it,' he
said. Really, Phil, it took me not
over five minutes to fix up the case,
tte thanked me very cordially and
gave me a cigar on the house. My
point IS that dealers can sell more
cigars and we cigar salesmen can as-
itlo?''^"^ *o seU more cigars. Ain't

Sure it's so, Tom— we cigar sales-
men can help sell more cigars if we

mV^k* . }^ ^^^' you, Tom, are a
member of the C. B. L. !

SeU Cigars By the Box!

~~^ —
father's Day, June 15th!

*!S^s!2^.^ry![ ^'^^«s INC.. pwia.

"«w«r« of fine cigara aince 1897,

A Salesman's
Ten Cans

by Frank Trufax

The Frank Trufax letters pub-
lished in book form some years
ago, attracted so many requests
for copies that two editions were
exhausted. In view of the con-
tinued demand, the editors have
decided to republish the letters
in the Bayuk Bulletin.

1. I CAN Be Polite.

Be as polite at a turn-down as you
are thankful at a write-up. Be firm
in your opinions, diplomatic in your
expression of them, but duly con-
siderate of the ideas of others.

Politeness is a very necessary at-
tribute that eliminates any friction
with your customer. Punctuality in
keeping engagements and accuracy
in making statements are twin
brothers of Politeness.

2. I CAN Be Busy.

Keep busy in planning with a pur-
pose and performing with a prompt-
ness. Proof of being busy lies in the
Work you Accomphsh, not in the
mental impressions you create. Be
Busy — not necessarily to reap bigger
benefits for your House, but, be-
cause a busy man is a business
builder for himself.

Results are the only right ring on
the register of Busy-ness.

3. I CAN Be Patient.

The "kid glove" position comes
after the successful handling of the
''Overall" job.

Sell your services with a liberal
gratis deal attached und do not hurry
your request for payment.

Be as patient in Demanding recog-
nition of your efforts as you are
persevering in Deserving recognition.

4. I CAN Be Studious.

Study your territory and study
your goods. Learn to know why
your product will sell, and be a
teacher of how to make it sell.

It is just as important to know
where to find Knowledge as it is to
have Knowledge. Ten minutes' stitdy
may find the answer to the problem
that took a wiser man ten months
to solve.

flf<:^k,.cAt^

P5S^

Be original in your creations, but
profit by studying the experience
of others.

5. I CAN Be Sincere.

Evidence of sincerity in your line
of argument awakens interest, while
a four-flushing chatter arouses sus-
picion. Lack of candidness on your
part may "hook" an order now and
then, but it never permanently
"lands" a customer. Say precisely
what you mean to do and do exactly
what you say.

6. I CAN Be Honest.

Honest with your trade and honest
with your firm, but most of all — be
honest with yourself. Turning a trick
in the belief of "getting away with
it" always reacts hke a boomerang.
A slick sale to the dealer means sure
suicide with the dealer.

Even in a purely selfish view,
Honesty is the best poUcy because
the dividends all accrue to you.

7. I CAN Be Confident.

Confidence is the absolute certain-
ty in your own mind that you can
successfully close the sale before you
even open up your sample. Con-
fidence springs from Faith in your
goods; Reliance on your knowledge

^ v\\\S\\V\\\\\\\\\VN\\ \\\ \ .W WWWNW wwxxx

of them, and Assurance of your abil-
ity to make manifest their merits.
Accomplishment always follows
the it-can-be-done Attempt.

8. I CAN Be Loyal.

Give allegiance to your House in
thought, word and' deed. When you
can't find it in your heart and head
to do so, make room for one who can.

To fall down on your job is an
excusable slip-up, but to lie down
on your job is rank rebellion.

9. I CAN Be Enthusiastic.

Enthusiasm is not excitement; it
is earnestness. Not frenzy, but fervor.
Not arrogant braggadocio, but ar-
dent belief in your goods.

Enthusiasm is lasting, not tem-
porary. It carries the dealer with
you, not away from you. It makes
him sell your goods as well as buy
your goods.

10. I CAN Be Happy.

The greater your distribution of
Happiness, the larger your stock on
hand becomes. The more you give,
the more you get back.

Happiness is the real Charmed
Chief of the whole Can Clan. A
smile is the badge of Happiness.
Wear it !

Yours truly,

PhUlies

Bayuk Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

BAYUK BRANDS BUILD BUSINESS

Report of Tobacco Stocks

HE 1941 season opened with supplies of flue-
cured, Burley, and dark tobaccos large relative
to normal disappearance. Supplies of Mary-
land tobacco and of most cigar leaf types are
about the same as in recent years. Exports of all to-
baccos to date have continued at a low level, but may
pick up before the end of the year. Domestic consump-
tion of most tobacco products, especially cigarettes,
continues to increase.

The Conmiodity Credit Corporation now holds
about 360 million pounds of flue-cured tobacco from the
1939 and 1940 crops, either purchased for British in-
terests or held as security on loans made to domestic
export dealers. The Corporation's maximum commit-
ment on the 1940 Burley crop is 6 million dollars on
30 million pounds ; on the 1940 dark crop, 7 million dol-
lars on 65 million pounds.

Under marketing quotas administered by the Agri-
cultural Adjustment Administration the 1941 acreage
allotments will be approximately as follows: Flue-
cured 760,000 acres; Burley 380,000 acres; fire-cured
85,000 acres; and dark air-cured (types 35 and 36),
35,000 acres. With normal yields these acreages would
reduce somewhat the excessive supplies of these types.
However, yields per acre have been increasing over the
past few years. In referenda the growers of these
tvpes voted for the adjustment program for the 3 years
1941-43.

Acreage intentions as of March 1 for Maryland
tobacco and cigar types (possibly excepting types 41
and 62), indicate a production in 1941 about the equiva-
lent of disappearance in recent years.

The passage of the Lease-Lend Act is expected to
facilitate exports of tobacco to the Ignited Kingdom,
either directly under the provisions of the Act or indi-
rectly by enabling the British to release dollar exchange
for the purchase of United States tobacco. It is ex-
pected that exports, especially of flue-cured to the
United Kingdom, will show some improvement, de-
pending partly upon the availability of shipping space.

With increasing industrial activity, domestic con-
sumption of tobacco products, except plug tobacco, con-
tinues to increase. A continued moderate increase may
be expected.

Practically all of the 1940 tobacco crop has been
sold. The season average prices for flue-cured, Burley,
and all dark types in 1940 were, respectively, about
16.2 cents, 16.3 cents, and 8.8 cents compared with 14.9
cents, 17.3 cents, and 10.6 cents in 1939. Most cigar
types have sold at about the same price as was received
by growers for the 1939 crop.

Flue-Cured, Types 11-14

The total 1941 allotment of flue-cured tobacco
under the marketing quota program is approximately
760,000 acres. The total 1940 allotment was 755,000
acres and the acreage harvested was 749,000 acres.

Assuming average growing conditions, it is un-
likely that a yield as low as the 1930-34 average of 731
pounds will be obtained. Yields have been increasing
in recent years. The average 1935-39 yield per acre
was 19 per cent, above the 1930-34 average, and the esti-
mated 1940 yield is about 40 per cent, above. If yields
approximating those of 1940 are obtained, the allotted
acreage will grow a crop exceeding 770 million pounds,
or 100 million pounds more than estimated on the basis
of normal yields.

Any estimate of future stocks, especially of the ex-
port types, is subject to a large percentage of error be-
cause of uncertainties created by the war. However,
flue-cured stocks as estimated at this time are expected
to total about 1,441 million pounds on July 1, 1941. The
estimated stocks figure takes into account tobacco that
will be held by the Commodity Credit Corporation
through direct purchase for British interests or

4-\\ i»<-v»-» r»>l > I
I ill Ou

by the Commodity Credit Corporation are not included,
the stocks as of Julv 1, 1941 are expected to be between
200 and 300 million pounds above the 1935-39 level. The
excessive stocks problem appeared in 1940 as a result
of the record 1939 crop and curtailed exports.

As of March 15, 1941 the Connnodity Credit Cor-
poration had disbursed 37,708,000 dollars on 200,771,-
000 pounds of the 1940 crop flue-cured tobacco under
the 1940 loan and purchase program. By March 15, ap-
proximately 708,000 pounds of the 1940 crop takings
had been released for exportation.

Of total purcliases of 173,778,000 pounds from the
1939 flue-cured crop, 158,751,000 pounds remained on
hand March 15, 1941.

Tax-paid withdrawals of cigarettes during the 8
months July-February, 1940-41 reached 122 billion, 5.2
per cent, above the 116 billion of the same months a
year earlier. If this rate of increase continues during
the next 4 months, tax-paid withdrawals for the fiscal
year ending June, 1941, will be nearly 190 billion cig-
arettes. Also, production of smoking tobacco during
the last 6 months of 1940 was up 3.2 per cent, over the
last half of 1939.

At present large shipments to the United Kingdom
are impossible, since shipping space is being requisi-
tioned for war material. Future shipments will depend
largely upon the extent that tobacco exports are facili-
tated by the Lease-Lend Act, either directly under the
provisions of the Act or indirectly by enabling the Brit-
ish to release dollar exchange for the purchase of to-
bacco.

So long as hostilities continue, it is to be expected
that British interests will ship only sufficient leaf to
maintain stocks for immediate consumption. In spite
of some destruction of tobacco in storage by hostilities,
there appears to be no serious urgency for immediate
shipment. As storage supplies in the United Kingdom
are diminished, it is to be expected, however, that Brit-
ish interests will arrange for shipments sufficiently
large to at least meet minimum requirements.

All flue-cured markets for the 1940-41 season were
closed by January 24, the date on which the markets for
type 11a closed. Producers' sales on warehouse floors
totaled 723,724,000 pounds at an average price of 16.8
cents. Warehouse sales, together with sales of scrap
tobacco outside warehouse floors of about 30 million
pounds will result in returns to the 1940 flue-cured
growers of about 122,500,000 dollars. This is the small-
est return received by flue-cured growers since 1933,
when the total was 112,145,000 dollars and the price
15.3 cents for a crop of 733 million pounds — essen-
tially the same in quantity as the 1940 crop. The 1940
average price of about 16.2 cents for the total crop-
higher than the 1939 price of 14.9 cents — no doubt has
been sustained because of the smaller crop and the ac-
tivities of the Commodity Credit Corporation during
the season just closed.

The Tobacco World

THE SMOKE'S

THE THING !

"YES, 511^ CAMEL

15 THE CIGARETTE

TOR /ME.

EXTRA
MILD!

v^

X

-and here's the scientific slant,
"BUCKY" WALTERS:

The smoke of slower- burning Camels gives you

2S% LESS
NICOTINE

than the average of the 4 other

largest -selling cigarettes tested — less than

any of them — according to independent

scientific tests of the smoke itself!

THERE'S THE WIND-UP. And

here's the pitch— an inside slant from
baseball's master moundsman, Cincin-
nati's famous "Bucky" Walters:

"My cigarette has to be mild, natu-
rally. Camels give me extra mildness—
and they're full of flavor." Extra mild-
ness—less nicotine in the smoke ... 28%
less than the average of the 4 other
largest-selling brands tested. Switch to
Camels now. Smoke out the facts for
yourself. The smoke's the thing!

A SLOWER-BURNING.
COOLER SMOKE
WITH

EXTRA
FLAVOR.

CAMELS ALWAVS
TASTE GOOD

''■^■ixw^^ ^/(^fac^

By burning 25% slower

than the average of the 4 other largest-
selling brands tested — slower than any
of them— Camels also give you a smok-
ing plus equal, on the average, to

YOU'VE GOT the right pitch, "Bucky." Gamers costlier
tobaccos are slower-burning. That means freedom from the
irritating qualities of excess heat . . . more coolness, more
flavor. \es, and no matter how much you smoke, flavorful
Camels always taste good . . . never wear out their welcome.

5

EXTRA SMOKES
PER PACK!

Camel

THE CIGARETTE

OF

COSTLIER TOBACCOS

R. J. Reynolds Tobacco Comuany
Winston -Salem, North Carolina

^a>', 1941

Crops at Home and Abroad

OBACCO growers reported intentions as of
March 1 indicated the planting of 1,404,500
acres of tobacco this spring as compared with
last season's harvested acreage of 1,427,000
acres. The decrease of about 2 per cent, is entirely due
to reductions of about 20 per cent, in prospective plant-
ing of the dark fired and dark air-cured types. For
cigar binder no change in acreage from last year is
indicated. All other classes of tobacco show increases

ftf 1 ick -^ r\ar nami T>oor>ifp fVioao alio-lif inprpasps fViP

1941 acreages of the various classes of tobacco will
apparently be much below the 10-year averages except
for cigar tobacco and type 32 grown in Southern Mary-
land. The trend in acreage for the latter type has
been generally upward the past few years.

Loss of foreign markets because of the war neces-
sitated rather low acreage allotments in 1940 and these
are practically unchanged for the coming season. As
a consequence the 1941 indicated acreage of flue-cured
tobacco is about 18 per cent, below the 10-year aver-
age. The foreign outlets for dark fired tobacco have
been declining for a number of years and the situation
has been made worse by the present conflict. Only a
relatively small percentage of dark air-cured tobacco
is exported and the prospective decrease in production
of this class of tobacco is due to supplies being in ex-
cess of domestic requirements rather than to the ex-
port situation.

A. A. A. marketing allotments are in effect on
many of the tobacco types and quite severe penalties
are provided for exceeding acreage quotas. With acre-
ages rather sharply curtailed from that in previous
years, it would seem that growers would plan to raise
the full acreage permitted them under the program.
Growers of dark tobacco as well as of some of the
other types, had not received their 1941 acreage allot-
ments when this report was prepared and there may
be further reductions or possibly some increases in
acreages when planting actually is done.

Comparatively little tobacco leaf was imported
into Denmark last year, and in order to keep their fac-
tories going throughout 1941, Danish tobacco manu-
facturers have found it necessary to institute more
drastic rationing. Sales of cigarettes in 1941 will be
from 15 to 20 per cent, less than they were in 1939.
Sales of cigars, retailing at from 50 0re to 1 krone (10
to 20 United States cents) will be reduced by 50 per
cent., and new and cheaper brands using Havana paper
as wrappers will be put on the market. Small cheroots
and cigarillos will supplement the larger cigars to a
considerable extent. Cigars retailing at more than 1
krone (20 cents) have been almost eliminated from the
market, and pipe tobacco sales will be reduced by about
15 to 25 per cent.

At the beginning of the war, Danish tobacco manu-
facturers had on hand enough leaf tobacco to last for
a period of about two years if used economically. The
scheme for reducing the requirements of consumers is,
therefore, a voluntary one agreed upon by manufac-
turers and dealers to conserve the limited leaf supply.
Some raw tobacco for cigarettes and pipe tobacco may
be obtained from Italy, Turkey and Bulgaria, but the
cigar tobacco, which formerly came from Brazil and
Java, appears to have been cut off entirely.

The consumption of cigarettes in Denmark in 1940
was estimated at about two billion. During the past
ro

few months, heavy stocks of American cigarettes,
which were held in the free port of Copenhagen for
servicing ships, have been permitted to be brought into
the country proper, and for the first time in many years
American cigarettes have been fairly plentiful on the
Danish market. Ordinary packages, however, that re-
tail in the United States for from 10 to 15 cents each
are being sold at prices ranging from 50 to 60 United
States cents per package, and this exorbitant price
has precluded any great demand for them.

Recent estimates place the Turkish tobacco crop
of 1940 at about 149.3 million pounds, according to in-
formation available in the Office of Foreign Agricul-
tural Relations. This figure is 10 per cent, above the
average production of 135.7 million pounds during the
4-year period ended with 1939. Despite the large crop,
it is apparently the intention of the Turkish Govern-
ment to try to maintain prices at about last year's
level. It is believed that this plan will be satisfactory
to buyers of the ^gean tobaccos, but they hope for
lower prices on the Black Sea and Marmara types,
production of which is much greater than previous esti-
mates liave indicated.

The market at Izmir was scheduled to open on
January 14. A tobacco purchasing fund of £T2,000,000
($1,500,000 United States currency) has been placed
at the disposal of the Turkish Ministry of Commerce
for several local tobacco companies in which the Gov-
ernment has an interest. When similar credits were
offered to these companies last year, they were refused
on the ground that the companies did not wish to pur-
chase on their own account and risk possible market
fluctuations. They were willing, however, to utiHze
the credits by purchasing for the Government's ac-
count on a commission basis.

The buying intentions of the American companies
are not yet definitely known. It is reported that the
local representative of at least one company gave as-
surances to the Turkish authorities that his company
would be in the market. The remaining stocks of last
year's United States purchases were reported shipped
in January.

Purchases made for the account of the British
Government will presumably be about the same as last
year. Funds for this purpose remain unchanged at
£880,000 ($3,542,000 United States currency), repre-
sentrng the interest and amortization on the British
credits to Turkev.

By enacting the ^'War Exchange Conservation
Act," effective December 2, 1940, the Canadian Gov-
ernment prohibited the importation of cigars, ciga-
rettes, manufactured tobacco and snuff, thus eliminat-
ing Canada for the' time being as one of our markets
for these products. Prior to this Act, smoking tobacco
accounted for the bulk of imports of manufactured
tobacco from the United States into Canada, according
to a report received from American Consul S. H. Day
at Toronto. Four United States brands had an appre-
ciable volume of sales ; but the market there for cigars,
cigarettes and snuff was negligible.

The recent import restriction on American manu-
tactured tobacco may lead to shifting the production
ot one or more smoking tobaccos to Canada. As a re-
sult of the war, a trend toward self-sufficiency in
Canada for all tobacco products is likely, according to
trade views.

The Tobacco World

RTDA CONVENTION

IROM Eric Calamia, president of the Retail To-
bacco Dealers of America, comes a cordial in-
vitation to you and you and you to attend the
association's annual convention and tobacco
show in the Hotel Pennsylvania, New York City, May
15, 16 and 17. Dedicating this convention to national
unity, the members of the retail tobacco trade from all
parts of the country will meet to review the activities
of their national association, to discuss the many prob-
lems of serious concern to the Industry, and to formu-
late plans for the militant action of the Association in
the future.

Every indication points to one of the most success-
ful and well attended conventions in R. T. D. A.'s his-
tory. The business sessions will be productive of new
ideas, new approaches and, most important, solidify
the efforts to promote greater efficiency so that the re-
tail tobacco trade can function as it should under the
present emergency of the national defense program.

While the entire program has not been completed
at this date, the Industry will be pleased to know that
one of the features of the convention will be a luncheon
on Saturday, May 17, at which Albert H. Gregg, Presi-
dent of the Cigar Institute of America will be the hon-
ored guest and speaker.

Manufacturers of tobacco and allied lines will ex-
hibit their products on the main convention floor dur-
ing the entire three-day Tobacco Show. Here, indeed,
is the logical place for manufacturers to offer their
merchandising ideas. In conjunction with the conven-
tion, the association will publish the sixth edition of the
Tobacco Retailers' Almanac. This book containing re-
ports of association officers, trade and statistical data,
all of much interest and value to the trade, goes forth
to thousands of retailers and to hundreds of the na-
tion's university and public libraries.

U. S. TOBACCO PROGRAM

The United States Tobacco Company enters its
seventh year of uninterrupted advertising on Columbia
late in May, having renewed its contract for the ' ^ Gay
Nineties Revue." Following spring renewals by three
other large tobacco advertisers, the renewal presages
an unusually vigorous advertising season by CBS
tobacco sponsors.

Under the renewal, the series will continue to be
broadcast over sixty-three CBS stations in the interest
of Model Smoking Tobacco and Dill's Best at 8:30-
8:55 P. M. each Monday, rebroadcast at 11:30-11:55
P.M.

The IT. S. Tobacco Company has sponsored that
broadcast period on CBS without break since June,
1935, with four different variety programs. Predeces-
sors of the present series were ''Pick and Pat," Fields
and Hall and the Model Minstrels with Tom Howard
and George Shelton.

*'The Gay Nineties" went under U. S. Tobacco
^ ompany sponorship after winning unusual popularity
M.M 1?^ sustaining feature. Produced by Frank A.
McMahon, the program's locale is a lively night spot
M the mauve decade— with Beatrice Kay as soubrette
^ar ; Joe Howard, 73-vear old singing master of cere-
monies; Billy M. Greene, hero and villain of many
I ush-and-purple melodramas; the Florodora Girls,
^^^e Elm City Four and Jenny Lynn.

Arthur Kudner, Inc., handles the account.
^ay, 1941

lOkl LLAftD'S POPULAR LEADERS

Something NEW*

has been added!

It's the new Old Gold— enriched
with a rare imported tobacco—
so now it's better than ever!
Get more pleasure from your
Old Gold now that something
new has been added.

3|c NEW— A prizMl importad lebacce, from th«
•ottem M««iit*rran*an— a tobacco whote •mall
aromatic leaves impart new life and zest le th«
fomout Old Gold blendt So evry momenf you tpmt6
with Old Gold will be even more Bimatont than bmform.

QsBorn£&z^cUSorm/uz/ru^

Am«rico'i oldeit tobacco marctiontt— E>labliil«*d 1760

OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BETUN, AROMATIZER, BOX FLAVORS, PASTE SWEETENERS

FRIES & BRO., 92 Reade Street, New York

CIGAR BOXES

Tel. Algonquin 4-9532

Established 1875

](|C.^^D8c^

REYNOLDS BUYS ALUMINUM

Arrangements are being made, it is understood at
0PM offices here, for the Reynolds Metals Co. to buy
at current market prices from the William Wrigley,
Jr., Co. 500,000 pounds of aluminum ingot.

Philip K. Wrigley, president, offered to make this
aluminum available in the interest of national defense.
The company ordinarily uses aluminum foil for wrap-
ping its product but will change to another wrapping
material.

u

f ft Awtl COUPON^

Mr. Dealer:

FOUR EXTRA COUPONS

\ A in each carton of Raleigh plam

UNION MAM

PiESTO PRESSUtE COOKER . . .

1,000 cuupons. Ask ilic B&W Siiles*
man for a supply ofcauloga showing
all the premiums you ciin suvc for

fO^

^vioia

,r^i -;?//<?<?/

KING EDWARD

CI6ARS

ring the bell with smart,
thrifty smokers and ring
up ever^mounting sales and
profits for jobbers and deal'
ers throughout America.

Keep ringing the
profit-bell with Kitig
Edward. Maintain your
stocks. Place King Edward
on top of the counters and

get the extra sales that come

when America's most popular

cigar is w^ithin easy reach of

the customer. /0tt ,

•^ The popular Ten-Pack
is ideal for the outdoorsman
and men in the armed ser-
vices. Increase your unit
sales >vith the

TEN-PACK

JNO. H. SWISHER & SON, Inc.

( ii_;cO \/(.i)n<fcicfH>i,'>'N

ACKSOWILLE, FLORIDA

GENERAL CIGAR PROFITS

For the quarter ended March 31, 1941, the General
Cigar Co. reports esthnated net profit of $296,954 after
depreciation, federal income taxes, etc. After divi-
dend requirements on 7 per cent, preferred stock, this
is 44 cents a share on 472,982 shares of common stock.

The company earned $282,420 or 41 cents a com-
mon share in March quarter of previous year.

Federal income taxes were computed at 24 per
cent, for the current quarter and at 18 per cent, for the
1940 period, and the earnings are not subject to Fed-
eral excess profits tax, the report states.

12

REYNOLDS RENEWS CUGAT

The R. J. Reynolds Tobacco Company has renewed
for another thirteen weeks the international broadcasts
of Xavier Cugat and his orchestra, featuring Yvette,
over NBC's International transmitters, WRCA and
WNBL

Al Pearce's CBS variety show starts its second
year of broadcasting for the R. J. Reynolds early in
May under a renewed contract. **A1 Pearce and His
Gang'' will continue to be heard over 79 Columbia
stations each Friday at 7:30-8:00 P. M., rebroadcast
10:30-11:00 P. M., in the interest of Camel Cigarettes
and Prince Albert Smoking Tobacco.

R. J. Reynolds is now in its 414th week of broad-
casting on CBS and is one of the network's veteran
advertisers. At the present time, in addition to Pearce,
the Company sponsors ^^Blondie," domestic radio-com-
edy starring Penny Singleton and Arthur Lake, over
60 CBS stations each Monday at 7:30-8:00 P. M., re-
broadcast at 10:30-11:00 P. M. Both the Reynolds
series originate at the studios of KNX, Columbia sta-
tion in Hollywood.

The Al Pearce account is handled by William Esty
& Company, Inc.

NOT DUE TO SMOKING

So-called ^^ smoker's cancer" of the lower lip,
which is found frequently in agricultural laborers, is
not due to smoking, as has been believed in the past,
but is the result of actinic cheilitis, a chronic inflamma-
tion of the lower lip from habitual sunburn. Dr. George
C. Andrews of New York City's Presbyterian Hospital
said Monday at a forum on ** Sunlight and Cancer."

Forum, which was organized by the American So-
ciety for the control of Cancer, was held in the audi-
torium of the Henry St. Settlement, 262 Madison Ave.,
New York City. Dr. Frank E. Adair, chairman of the
executive committee of the society, presided.

INTERNAL REVENUE COLLECTIONS FOR MARCH

Source of Revenue 1941 1940

Cigars $1,049,283.45 $962,173.73

Cigarettes 50,470,715.62 39,063,530.5

Snuff 586,929.40 577,051.8j

Tobacco, chewing and smoking 4,499,321.79 4,382,363.4^

Cigarette papers and tubes 94,477.95 l^^'^^eS

Leaf dealer penalties 729.47 H^"^

The Tobacco Wo^

MODEL TOBACCO Presents

one of radio's outstanding hits

"IH^ GAY NINETIES''

You And Ail Your Customers Will Like It
Coast to Coast Every Monday Night

on C^H'mbia Broadcasting System

CIGARETTE PROGRAMS RENEW

Following closely upon the heels of R. J. Reynolds'
renewal of **A1 Pearce and His Gang,'' the American
Tobacco Company and Philip Morris & Company, Lim-
ited, renewed contracts for their evening shows on
CBS. The three renewals, coming on the same day,
foretell another heavy year of tobacco advertising on
Columbia.

**Your Hit Parade," sponsored by American To-
bacco for Lucky Strike Cigarettes, enters its sixth
straight year of broadcasting on CBS with the renewed
contract. It will continue to be heard each Saturday
at 9:00-9:45 P. M., rebroadcast 12:00-12:45 A. M., over
103 CBS stations.

j ''Crime Doctor," sponsored in the interest of

Philip Morris Cigarettes, will continue under its re-
newed contract to be heard each Sunday at 8:30-8:55
P. M., rebroadcast 11:00-11:25 P. M. over 64 CBS sta-
tions. On September 28, ''Crime Doctor" plans to add
the CBS Florida Group to its network, making a total
of 70 Columbia stations.

Philip Morris also sponsors "Great Moments from
Great Plays, ' ' a new dramatic series produced and di-
rected by Charles Martin, over 90 CBS stations each
Friday at 9:00-9:30 P. M., rebroadcast 11:30-12:00 mid-
night.

Tobacco ranked third among industries in gross
CBS billings in 1940. Almost all of the ten best-selling
cigarettes are represented on Columbia programs, as
well as pipe and smoking tobacco.

The American Tobacco Company account is
handled by Lord & Thomas, Philip Morris by the Blow
C>ompany.

HORSFIELD REYNOLDS DIRECTOR

_Basil T. Horsfield, manager of the aluminum pro-
auction division of the Reynolds Metals Company, has
oeen elected a director of the company, according to
an announcement of R. S. Reynolds, president. Mr.
^orstield formerly was chief chemist for the Tennessee
.v.nemicai Company, of Nashville, Tenn.; was associ-
floo T^/^^^ Aluminum Company of America as man-
^8er ot the electro-thermal division of research, and
^lore recently was manager of Orefraction, Inc., of
rittsburgh, a subsidiary of the Edwin L. Wiegand
sitv nf xr'^'lV'^' ^^"^P^^^y- ^ graduate of the Univer-
seve.^1 . ^^'^'^^^^"''^^ ^^^'- Horsfield is credited with
^veial patents m the metal lieating field.

'"^^oy. 1941

SPRUCE LUMBER

for CIGAR BOXES

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

It's Brighter
It's Lighter
It's Better

Uptegrove Lumber Co.

Cigcur Box Lumber for 67 years

15 Washington St. Newark, N. J.

Establiah«d 1886

"BEST OF THE BEST"

M«Bufactur«d

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Horida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit, Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling, W. Va.

n

Tobacco Merchants' Association
Registration Bureau, new^ork a^^^

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

Begistration,
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. .

KT .„ ■> IX . t. ~_ . .».^<.v. nf « *it\m nff<>»cGitatpa th^ renortinsT nt more

than ten (10) titles, but less than twenty-one (21), an additional charge ot Une
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 bo made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

NEW REGISTRATIONS.
BOSWELL: — 46,854 for all tobacco products. Registered by Chas.

Redstone, New York, N. Y., on February 28, 1941.
ARBORWAY:— 46,856 for cigars. Registered by Tiews Bros., Ros-

lindale, Mass., on April 15, 1941.

TRANSFERRED REGISTRATIONS.

TUNGSTEN:— 317,933 (U. S. Patent Office). For cigars. Regis-
tered October 9, 1934, by Mazer-Cressman Cigar Co., Detroit,
Mich. Transferred by J. Mazer Sons Cigar Co., Detroit, Mich.,
successors to the original registrant, to J. C. Winter & Co., Inc.,
Red Lion, Pa., on February 5, 1941.

LA TERONA:— 32,691 (U. S. Tobacco Journal). For cigars, ciga-
rettes and cheroots. Registered February 13, 1907, by Calvert
Litho. Co., Chicago, 111. Through mesne transfers acquired by J.
Mazer Sons Cigar Co., Detroit, Mich., and re-transferred to J. C.
Winter & Co., Inc., Red Lion, Pa., on February 5, 1941.

LOBELIA:— 11,815 (Trade-Mark Record). For cigars. Registered
June 1, 1892, by L. C. Wagner & Co., New York, N. Y., and
109,115 (United States Patent Office). Registered March 21, 1916,
by Mi Favorita Cigar Co., Inc., New York, N. Y. Through mesne
transfers acquired by the Lucius Cigar Factory, Inc., Chicago,
111., and re-transferred to Joseph H. Hornstein, Chicago, 111., on
February 28, 1941.

LA FLOR DE RYAN & RAPHAEL (also known as R & R) :—
45,437 (Tobacco Merchants' Association of the U. S.). For cigars.
Registered January 9, 1928, by Jose Ferlita Cigar Co., Chicago, 111.
Through mesne transfers acquired by Lucius Cigar Factory, Inc.,
Chicago, 111., and re-transferred to Joseph H. Hornstein, Chicago,
111., on February 28, 1941.

LUCIUS DE LUXE:— 45,129 (Tobacco Merchants' Association of
the U. S.). For cigars. Registered January 13, 1928, by Jose Fer-
lita Cigar Co., Chicago, 111. Through mesne transfers acquired
by Lucius Cigar Factory, Inc., Chicago, 111., and re-transferred to
Joseph H. Hornstein, Chicago, 111., on February 28, 1941.

LUCIUS:— 24,552 (Trade-Mark Record). For cigars. Registered
May 4, 1901, by Geo. Schlegel, New York, N. Y. Through mesne
transfers acquired by Lucius Cigar Factory, Inc., Chicago, 111., and
re-transferred to Joseph H. Hornstein, Chicago, 111., on February
28, 1941.

SCHNAUZER:— 43,802 (Tobacco Merchants' Association of the
U. S.). For cigars. Registered May 19, 1924, by Mi Waukee Ci-
gar Co., Milwaukee, Wis. Transferred to Joseph H. Hornstein,
Chicago, 111., on August 11, 1937.

CHEER:— 2,292 (Legal Protective Association). For cigars. Reg-
istered August 11, 1886, by Geo. Schlegel, New York, N. Y.
Through mesne transfers acquired by Kerr Cigar Co., Terre Haute,
Ind., and re-transferred to Joseph H. Hornstein, Chicago, 111., on
January 24, 1941.

DEMANDER:— 16,206 (National Registration Bureau of Milwau-
kee, Wis.). Registered July 8, 1909, by Michigan Cigar Box Co.,
Detroit, Mich. Through mesne transfers acquired by American
Box Supply Co., Detroit, Mich., and re-transferred to Joseph H.
Hornstein, Chicago, 111., on June 21, 1939.

LIBERTY HALL:— 11,265 (Tobacco Leaf). For cigars. Regis-
tered December 16, 1895, by Geo. S. Harris & Sons, Philadelphia,
Pa. Through mesne transfers acquired by American Box Supply
Co., Detroit, Mich., and re-transferred to Joseph H. Hornstein,
Chicago, 111., on January 5, 1938.

ANNAPOLIS: — 45,731 (Tobacco Merchants Association of the U.
S.). For all tobacco products. Registered April 19, 1930 by Wm.
Boucher & Sons, Baltimore, Md. Transferred to The In-B-Tween
Co., Baltimore, Md., on April 3, 1941.

TAKING:— 13738 (Trade-Mark Record). For cigars. Registered
September 11, 1894 by Sam Levy, Trenton, N. J. Through mesne
transfers acquired by J. Mazer Sons Cigar Co., Detroit, Mich., and
re-transferred to J. C. Winter & Co., Inc., Red Lion, Pa., on Feb-
ruary 5, 1941.

14

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

{v'

•<^^

ESSE A. BLOCK, Wheeling, W. Va President

.VILLIAM BEST, New York, N. Y Chairman Executive Committee

GEORGE W. HILL, New York, N. Y Vice-President

GEORGE H, HUMMEL, New York, N. Y Vice-President

S. CLAY WILLIAMS, Winston-Salem, N. C Vice-President

JULIUS LICHTENSTEIN. New York, N. Y 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

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

HENRY J. PINNEY, Worcester, Mass Presidert^

EDMUND C. DEARSTYNE, Albany, N. Y Vice-President

J. RENZ EDWARDS, Kansas City, Kan Treasurer

JOSEPH KOLODNY, 200 Fifth Ave., New York, N. Y Secretary

NATIONAL BOARD OF TOBACCO SALESMEN'S

A CC<^r'T AT«T/^"\TC

BEN L. LASCriOW, 862 East Fifteenth St., Brooklyn, N. Y President

R. L. McCORMICK, 52 Klein Ave., Trenton, N. 1 First Vice-President

J. J. OLLENDORFF, 780 West End Ave., New York, N. Y, ..Executive Secretary
ALBERT FREEMAN, 25 West Broadway, New York, N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

ERIC CALAMIA, 233 Broadway, New York, N. Y President

JOHN MAUTE Vice-President

CLIFFORD M. DAWSON Treasurer

MALCOLM L. FLEISCHER Secretary

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA,
INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA President

THOMAS C. BREEN Treasurer

SAMUEL BLUMBERG General Counsel

Executive Committee — Alvaro M. Garcia (Ex-oflficio), Thomas C. Breen, Harley W.

Jefferson, D. Emil Klein, Walter E. Popper, Harry C. Carr, and Arthur A.

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion, Pa Preside

T. E. BROOKS, Red Lion, Pa Vice-President

ARTHUR S. ZIEGLER, Red Lion. Pa Treasurer

RUSSELL S. STINE, Red Lion, Pa Secretary

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

JOSE P. PEREZ, Tampa, Fla President

ARMANDO RODRIGUEZ, Tampa, Fla Vice-President

JOHN LEVY, Tampa, Fla Treasurer

FRANCIS M. SACK, Tampa, Fla Secretary

INDEPENDENT RETAIL TOBACCONISTS'

ASSOCIATION

BERNARD SCHWARZ Preside

ERIC CALAMIA First Vice-President

BENJ. FRIEDMAN Secdnd Vice-President

JOSEPH GROSSMAN Third Vice-President

ARTHUR W. JONES Financial Secretary

LOUIS GROSSMAN Treasurer

BERNARD BERNSTEIN, 42 Broadway, New York, N. Y Secretary

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC

JOSEPH FRIEDMAN Preside«

TACK EDELSTEIN Treasur

LEO RIEDERS, 3800 Broadway, New York, N. Y Secret

MANUFACTURED TOBACCO PRODUCED BY CLASSES*

(As reported by the Bureau of Internal Revenue, based on manufac-
turers' returns of production)
Month of January

Product 1941

Plug 3,881,717

Twist 457,002

Fine-cut Chewing 426,459

Scrap Chewing 3,635,698

Smoking 16,751,661

Total 25,152,537

+
+
H-

Increase or Decrease
Quantity Per Cent

397,552

57,507

95,979

44,734

1,586,621

+ 2,182,393

11.41
14.3v
29.04
1.25.
10.46'

Seven Months Ending January 31

Product 1941

Plug 28,591,012

Twist 3,347,036

Fine-cut Chewing 2,957,632

Scrap Chewing 25,413,733

Smoking 123,742,153

Total 184,051,566

+
+
4-
+

Increase or Decrease

Quantity Per Cent

794,686 2.70,

18,687 0.56 <

408,347 16.02;

427,885 1-7

4,908,633 4.13.

+ 4,968,866

♦The production figures are in pounds, and are subject to revi-
sion until published in the annual report of the Commissioner of I"*
ternal Revenue.

The Tobacco WoM

J ^ a

J"" '»»

JUNE ^^^^''cw.

1941

▲

^

ESTABLISHED
1881

FATHER'S DAY, JUNE 15
— GIVE HIM CIGARS

That is the copy on a glossy poster,
9 X 17^2 inches, gummed on the back so
that it can be readily pasted on the out-
side of cigar retailers' windows.

Copies of the poster may be obtained
— free of charge — by writing directly to
the Cigar Institute of America, Inc., 630
Fifth Avenue, New York City.

These posters should be on display in
retailers' windows ever3rwhere for a full
week before Father's Day.

m

PATRICIA MORISON

Chesterfield's Girl of the Month

currently appearing in Paramount's
'The Round Up

les^ you will quickly like everything about
Chesterfields . . . they're cooler and milder with plenty
of good taste. You are entitled to all these things in
a cigarette and you get them in Chesterfield's right
combination of the world's best cigarette tobaccos.

EVERYWHERE YOU GO...

Copyright 1941. Licgbtt & Mybis Tobacco Ca

HoBAET B. Han KINS — Eaiiut

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

JUNE, 1941

No. 6

ITH a deep bow to liis superior business wis-
dom, liis pre-eminent position in the cigar in-
dustry, and his zeal as a personal researcher,
the conductor of this department hands the

over to a gentieman, a

scholar and a good judge of the psychology of selling

A^lbert H. Gregg, president of the Cigar Institute

Vmerica. The following paragraphs are taken from

nddress before the Retail Tobacco Dealers of Amer-

at the annual convention in the Hotel Pennsyl-

a, New York City. The rest of the inspiring and

in rmative talk will be found elsewhere in this issue.

Gentlemen, we give you Mr. Gregg.

ECAUSE of the fact that I have long been in-
terested in observing the way cigars are

ffli

mmiM^_ handled at retail, I seldom carry cigars in my
pocket, preferring to buy them from the re-
tailer wherever I happen to be. I have done so all
over the United States. Of course, I have many
friends among the retailers, who know me and greet
nie when I stop in to make a purchase. Nevertheless,
I am sure that I have made purchases in the last two
years in 200 stores scattered over the United States,
where I was not known. I am quite sure that in those
two years' time, I have not had one retail salesman
attempt to sell me a box of cigars, or any cigars in
addition to what I asked for or selected. Possibly I
always look as though I needed a shave, because fre-
quently when I purchase a few cigars, I am asked if
I can be interested in a package of razor blades. I
rather resent the fact that on occasion I have been
asked, after the purchase of a few cigars, if I cared
to buy a burglar's lamp — you know, one of those elec-
tric torches. But something about my appearance has
persistently discouraged the retailer from thinking he
might sell me a box of cigars.

^mHEN I first knew the retail cigar business in
Afm New York City, I am sure that not less than
35 per cent, of the better grade cigars were
sold by the box. AVhen you sell cigars by
the box, the customer has the opportunity of select-
nig according to his individual taste. When you sell
cigars by the box you may be sure they will be more
rapidly consumed than when you sell two or three at
a time. When you sell cigars by the box, you are en-
couraging the use of cigars in hospitality. A stock
of cigars in a man's home or office almost surely means
tiiey will be shared with some of his friends and guests.
That is not quite so likely when the stock is limited
to a few in the pocket. The simple truth of the matter
IS that on this article, which offers the widest possi-
biHty for retail salesmanship because of general con-
sumer interest, it has become the habit, in this country
at least, to limit merchandising effort to price attrac-

tion and to display which, unfortunately in most in-
stances, is not particularly inviting. You are devot-
ing space to this merchandise; you are investing cap-
ital in it and investing capital in fixtures which are
nCCcSoai^ tO caiu lui iL ana uispiay it. i am quiie
well acquainted with the argument that cigar volume
and profits are not sufficiently large to justify studied
care of the merchandise and studied salesmanship in
the development of the business; and if you carried
that reasoning to its logical conclusion, many of you
would discontinue carrying cigars in your stores.

HIS merchandise brings into your stores cus-
tomers who are able to buy other types of
merchandise, and it is a commodity on which
you can, with no added expense and no loss
of business on other merchandise, decidedly improve
your profits. The cigar is a pleasurable, harmless in-
dulgence which civilized man will not relinquish and
you may be sure that the pendulum is already swing-
ing in the direction of greater cigar popularity. We,
in the Cigar Institute, have specifically planned and
are caryring out a program of work calculated to cre~
ate greater interest in cigars and a constantly grow-
ing crop of new consumers.

E are using pleasing forms of news publicity,
news photographs and special feature articles
in all of which admirable types and popular
figures are shown as cigar consumers. We
are promised, and in fact are receiving, co-operation
from the moving picture industry in this same direc-
tion. We also have other plans through which we hope
to interest the consumer. You men who are engaged
in the retail field can aid greatly in making this work
more effective to the specific benefit of yourselves and
all others interested in the cigar business. I ask that
you give us your whole-heartea co-operation in our
campaign for improvement in the care of cigars in
retail stands and of displays of merchandise. I ask
you to add to this a measure of genuine retail sales-
manship, and I ask you to require your clerks or sales-
men to acquaint themselves with your cigar merchan-
dise and its most interesting presentation to the con-
sumer. By so doing you will add greatly to the effec-
tiveness of our work and much more quickly make it
productive of important results in the volume of cigar
sales The Cigar Institute propose to provide a cer-
tihcate of merit for each retail dealer who equips and
arranges his Cigar Department so as to reasonably
care for the condition of his merchandise and make
an attractive presentation of it to his public. That
certificate of merit is not merely a compliment to the
dealer, but a beacon light for the consumer in guiding
him to the place where cigars in satisfactory condi-
tion and attractive presentation may be found

I

:H

MUTILATED PAGE

Tobacco Products Fared Well in April

Every Major Classification Showed
Increase in U* S. Withdrawals; Among
Cigars, Only Class E Failed to Gain

PRIL was a sweet month for tobacco products
of all kinds compared to the same month last
vear. There was an increase in withdrawals
of every major U. S. classification — cigars,
little cigars, cigarettes, snuff, chewing and smoking
tobacco. In the breakdown of cigars into classes, each
U. S. class also showed a gain, with the single excep-
tion of Class E, and even there the drop was a slight
one. The only other minus signs in the Supplement
to the Tobacco Barometer of the Tobacco Merchants
Association of the United States were for Philippine
Islands cigar withdrawals — Classes A, B and total.
When the report was issued, Puerto Rico statistics
were not available.

All classes of cigars in the U. S. totaled 490,584,-
765, as compared to 425,140,424, an increase of 65,-
444,341, or 15.39 per cent. P. I. withdrawals totaled
12,478,277, as compared to 18,327,463, a decline of
5,849,186, or 31.91 per cent. Grand total, exclusive of
Puerto Rico, was 503,063,042, as compared to 443,467,-
887, an increase of 59,595,155, or 13.44 per cent.

Class A cigars in the U. S. totaled 440,146,965, as
compared to 380,967,270, a gain of 59,179,695, or 15.53
per cent. P. I. withdrawals increased the class total

Increase or Decrease

Product April, 1941 Quantity Per Cent.
Cigars :
Class A —

United States 440,146,965 + 59,179,695 15.53

Philippine Islands ... 12,403,310 — 5,904,730 32.25

^ Total 452,550,275 + 53,274,965 13.34

Puerto Rico (a)

Class B —

United States 3,274,180 + 91,243 2 87

Philippine Islands ... 5,477 — 1,550

„ Total 3,279,657 + 89,693 2.81

Puerto Rico (a)

Class C —

United States . 43,798,832 + 5,642,510 14.79

Phihppnie Islands . . . 59,990 + 49,614

P Total 43,858,822 + 5,692,124 14.91

Puerto Rico (a)

Class D —

p7e?t'o' Rico ■:.•;:::.•.■ '•{T' + =«.^8« "^^

Class E —

United States 251,210 — 5995 9 ^^

Philippine Islands ... 4,000 + 2,980

p^ Rico' ::::.::: ^' - "^ ~^

Puerto^^c^^v^l^i;;^^ [[;L ^1^;:!' ''''^ - ^-^-^ P-^-^s fro.

4

to 452,550,275, but reduced the gain to 53,274,965, or
13.34 per cent.

Class B cigars in the U. S. totaled 3,274,180, as
compared to 3,182,937, a rise of 91,243, or 2.87 per
cent. Again P. I. withdrawals increased the total (to
3,279,657) and lightened the gain (to 89,693, or 2.81
per cent.).

Class C cigars in the U. S. totaled 43,798,832, as
compared to 38,156,322, an advance of 5,642,510, or
14.79 per cent., and this was increased by Philippine
withdrawals to a total of 43,858,822 for a gain of 5,692,-
124, or 14.91 per cent.

Class D cigars in the U. S. totaled 3,113,578, as
compared to 2,576,690, an increase of 536,888, or 20.84
per cent. P. I. withdrawals increased the total 3,119,-
078 and the gain to 541,388, or 21 per cent.

Class E cigars in the U. S. totaled 251,210, as
compared to 257,205, a decline of 5,995, or 2.33 per
cent. P. I. withdrawals reduced the loss to 3,015, or
1.17 per cent.

Little cigars totaled 13,552,400, as compared to
12,230,907, an increase of 1,321,493, or 10.8 per cent.

Cigarettes in the U. S. totaled 15,853,661,710, for
a gain of 1,034,154,030, or 6.98 per cent.

Following are the comparative figures:

Increase or Decrease

Product April, 1941 Quantity Per Cent.
Total All Classes:

United States 490,584,765 + 65,444,341 15.39

Philippine Islands ... 12,478,277 — 5,849,186 31.91

Grand Total 503.063,042 + 59,595,155 13.44

Puerto Rico (a)

Little Cigars:

United States 13.552,400 + 1,321,493 10.80

Philippine Islands ...

p Total 13,552,400 + 1,321,493 10.80

Puerto Rico (a)

Cigarettes:

United States . 15,853,661,710 + 1,034,154,030 6.98,

Philippine Islands ... 30.750 + 10,350

p Total 15.853,692,460 + 1,034,164,380 6.98

Puerto Rico (a)

Large Cigarettes:

Uni^ted States 154,832 + 19550 14 45

Philippine Islands ... ...... '^" ^^'^^

^ Total 154,832 + 19550 1445

Puerto Rico (a) ' '

Snuff (lbs.): ' ■ "

All United States . 3,507,505 -f 109,488 3.22

Tobacco (Chewing and '
Smoking) lbs.:

United States 25,619,906 + 537 344 2 14

Philippine Islands ... ...... ^^/.^^^ z.l4

■^°'^" ■ ■ 25,619,906 + i^T;^ ~^Ji

The Tobacco World

10 Months' Withdrawals Show Good Gains

Cigar Increases More Substantial
in 1941 Over 1940 Than They Were
in 1940 Over 1939; Class E Down

N every major classification of tobacco prod-
ucts except large cigarettes, there was an in-
crease m cj. S. Withdrawals in the first ten
nionths of the fiscal year, as compared to the
same period a year ago, it is revealed in the Supple-
ment to the Tobacco Barometer of the Tobacco Mer-
chants Association of the United States. The gains
ranged froni 1.22 per cent, for snuff to 8.73 per cent,
for little cigars. Puerto Rico withdrawals were un-
available and are omitted from the figures.

All classes of cigars in the U. S. totaled 4,573,951,-
949, as compared to 4,389,276,832, an increase of 184,-
675,117, or 4.21 per cent. P. I. withdrawals totaled
147,293,003, as compared to 177,866,767, a drop of 30,-
573,764, or 17.19 per cent. Grand total was 4,721,244,-
952, as compared to 4,567,143,599, a gain of 154,101,-
353, or 3.37 per cent.

Class A cigars in the U. S. totaled 4,075,315,035,
as compared to 3,916,981,365, a gain of 158,333,670, or
4.04 per cent. P. I. withdrawals increased the total
to 4,221,755,060 but reduced the gain to 127,665, or 3.12
per cent.

Class B cigars in the U. S. totaled 35,198,590, as
compared to 34,720,934, a rise of 577,656, or 1.38 per
cent. P. I. withdrawals increased the total to 35,358,-

Ist 10 Mos.
Fiscal Yr. 1941

Product

Cigars :
Class A —

United States 4,075,315,035 + 158,333,670

Philippine Islands ... 146,440,025 — 30,668,255

Increase or Decrease
Quantity Per Cent.

Total 4,221,755,060 -f

Puerto Rico (a)

Class B —
United States . . .
Philippine Islands

Total

Puerto Rico

35,198,590 +
160,056 +

35,358,646 +
(a)

Class C —

United States 427,486,328 +

Philippine Islands . . . 343,672 -f

127,665,415

477,656
59,595

537,251

23,522,868
60,273

4.04
17.32

3.12

1.38

1.54

5.82

^Total 427,830,000 -f- 23,583,141

Puerto Rico (a)

Class D —
United States . . .
Philippine Islands

32,249,855 +
70,465 —

Total ....
Puerto Rico

32,320,320 +
(a)

Class E—
United States . . .
Philippine Islands

3,702,141 —
278,785 -f

2,540,927
173,381

2,367,546

200.004
148,004

Total ....
Puerto Rico

3,980,926 —
(a)

52,000

5.83

8.55

7.90

5.13

1.29

draw.ll\^ Omitted due to fact that April, 1941, Puerto Rico with-
arawals are unavailable at this time.

June, IQ4I

646 and the gain to 537,251, or 1.54 per cent.

Class C cigars in the U. S. totaled 427,486,328, as
K^yjinpaieu. Lu •±Uo,i^Uo,'±uu, an auvance ol zo,yzz,ooo, or
5.82 per cent. P. I. withdrawals raised the total to
427,830,000 and the increase to 23,583,141, or 5.83 per
cent.

Class D cigars in the U. S. totaled 32,249,855, as
compared to 29,708,928, a gain of 2,540,927, or 8.55
per cent. The total was raised to 32,320,320 by P. I.
withdrawals and the increase lowered to 2,367,546, or
7.9 per cent.

Class E cigars in the U. S. totaled 3,702,141, as
compared to 3,902,145, a fall of 200,004, or 5.13 per
cent. The loss was greatly reduced by P. I. withdraw-
als to 52,000, or 1.29 per cent.

Little cigars totaled 129,464,212, as compared to
119,064,103, an increase of 10,400,109, or 8.73 per cent.

Cigarettes in the U. S. totaled 153,386,230,253, as
compared to 143,839,645,677, an increase of 9,546,584,-
576, or 6.64 per cent.

Large cigarettes in the U. S. totaled 1,275,926, for
a loss of 740,744, or 36.79 per cent.

SnuiT gained 384,555 pounds, or 1.22 per cent.;
chewing and smoking tobacco, 1.55 per cent. The fig-
ures:

1st 10 Mos. Increase or Decrease

Product Fiscal Yr. 1941 Quantity Per Cent.

Total All Classes:

United States 4,573,951,949 + 184,675,117 4.21

Philippine Islands ... 147,293,003 — 30,573,764 17.19

Grand Total 4,721,244,952 + 154,101,353 3.37

Puerto Rico (a)

Little Cigars:

United States 129,464,212 + 10,400,109 8.73

Philippine Islands ...

Total 129,464,212 + 10,400,109 8.73

Puerto Rico (a)

Cigarettes:

United States 153,386,230,253 + 9,546,584,576 6.64

Philippine Islands ... 258,542 — 483,398

' Total 1 53,386,488,795 + 9,546,101,178 ~64

Puerto Rico (a)

Large Cigarettes:

United States . 1,275,926 _ 740,744 36.73

Phihppnic Islands ... 780 — 2,395

pToJ^^ •.• 1,276,706 - 743,139 "16^79

Puerto Rico (a)

Snuff (lbs.):

All United States ... 31,791,100 + 384,555 1.22

Tobacco (Chewing and
Smoking) lbs.:

United States . 254,733,029 + 3,881,548 1.55

Philippine Islands ... 12 -f- 5

'^°^^^ 254,733,041 + 3,881,553 Ws

(a) Omitted due to fact that April, 1941. Puerto Rico with
drawals are unavailable at this time. -f uerto kico witii-

5

I
1

ii'

!

I (

m

U:

Future of Fair Trade

By Theodore Chrlstianson,
Foriiier Governor of Minnesota

ECENTLY I read a story about a colored niau
which carries a moral for every retailer. It
seems that Judge Jones engaged Sambo to
paint his garage and agreed to pay him $2.50
for the job. Kelui-ning to the garage after about iwo
hours to see how the work was progressing, the judge
was somewhat chagrined to find Sambo lying m tne
shade of a tree while another colored man was wiela-
in^ the brush. "How is this, Sambo I" demanded the
judge. "I supposed I hired you to do the job!"

''Yes, sah, Jedge; you sho' did, but ah sublets de
job for $3. ' '

''But I pay you only $2.50, so you lose fifty cents."

"Yes, sah, Jedge. Ah knows dat — but it's wuth
somethin' to be boss."

That story set me thinking, wondering if it isn't
costing many retailers too much to be boss. If a man
doesn't get enough for his merchandise to replace it,
to reimburse him for his expense in selling it, to return
a fair rate of interest on his investment in his busi-
ness, and to pay himself a salary at least equal to what
he could get if he hired out to somebody else, his I. Q.
isn't much higher than that of the Ethiopian in the
story.

When I note the prices at which some of you sell
cigarettes, I feel reasonably sure that I should this
minute lose a considerable part of my audience if the
chairman were to announce that there was a telephone
call for Sambo!

In saying this, I have no intention to give offense.
I am only caHing attention to a situation which exists
in every major branch of distribution.

"Count that day lost, whose low descending sun
Sees prices shot to hell and business done for
fun!"

While the retail druggists have perhaps derived
more benefits from fair trade than any other trade
group because the manufacturers of drug store mer-
chandise were the first to see the advantage of price-
protecting their products, I am as sure as I can be of
anything in this uncertain world that other retailers
will soon be equally benefited. I expect to see the day
when every tobacco product will commend the same
price in every market and in every store in the land.

Not for always will tobacco manufacturers be con-
tent to have their industry carry the burden of supply-
ing free sales promotion for other industries. Not for
always will they permit cigarettes to be used as bait
by department and chain stores to attract customers
for other categories of merchandise, sold sometimes at
outrageous prices.

Ultimately it will dawn upon the tobacco manu-
facturers—as it is beginning to dawn on manufacturers
m some other fields— that it is a short-sighted policy
to help one or two classifications of distributors by use
of the loss leader technique to capture so large a part
of the market as to be enabled ultimately to dictate the
manufacturer's price jjolicies.

Not from any altruistic motive, but from motives
of sheet self-interest; not through pressure from re-
tailers but through the pressure of their own neces-
sities ; not to preserve the independent retailer for his
6

^ own sake, but to prevent becoming servants and satel-
lites of great distributive monoj)olies, the manufac-
turers of the United States will, in my opinion, adopt
fair trade and make it ultimately universal in Amer-
ican business.

Fair trade was, and is the antithesis, the opposite
of unfair trade. The present fair trade movement is
only an extension of the limits within which the one-
price policy operates. It extends from the four walls
of a store to the uttermost boundaries of the state, and
even of the nation, the principle of fair dealing and
uniform pricing which all honest merchants had come
to apply within their own places of business.

It may be said that the very fact that people still
shop around for bargain belies my statement. It does
not. There were many who recognized slavery as an
evil, who nevertheless kept slaves. There are many
who deplore intemperance who occasionally get drunk ;
prohibition could not have been enacted if it had not
received the support of many people who drink whis-
key, nor repealed without the sanction of many who
don 't.

Likewise there are millions of people whose pulse
quickens at the sight of a bargain counter, who none
the less recognize that the bargain counter is a
gambling device^a slot machine set to favor the house
— and that, as such, it ought to be outlawed.

That consumers do not object to fair trade but on
the contrary approve it, is shown by the fact that,
despite agitation agahist fair trade by professional
promoters, organized price chiselers and Washington
bureaucrats, no fair trade law has ever been repealed
in any state.

This year legislatures have been in session in
nearly all the states. Not a single bill for the repeal
of fair trade was even introduced, and bills designed '
to weaken it did not get out of committee. Considering
how sensitive to public opinion politicians are, do vou
suppose that that record would have been possible if
the voters did not approve of the policy of one fair
price to everybody?

BAYUK STOCKHOLDERS SUPPORT
MANAGEMENT

Stockholders of Bayuk Cigars, Inc. in their an-
nual meeting, voted 290,841 shares to 3847 shares in
support of the recommendations of the management.

In commenting on the stockholders' action, A.
Joseph Newman, President, stated: "My associates
and I have felt that in view of the record of Bayuk
Cigars, Inc. under the present management, the stock-
holders would give us their full support. The results
of the election justify such confidence."

SYLVANIA INDUSTRIAL PROFITS

Sylvania Industrial Corporation, manufacturer
ot Sylvania cellophane, reports profit of $274,781, or
sixty-five cents per share of capital stock, for March
quarter, against $243,752, or fifty-seven cents per cap-
ital share, in corresponding period of last year.

The Tobacco World

/ J

* <<•

,^#

•Actual photograph-]. M. TalUy insptcts a Uafoffine, light tobacco, before aging.

/0^

W this lialif Ai

m\LK\

^

this iighfer, milder leaf
brings a fancy price!

—but Luckies pay the price to get it!"
says J. M.Talley, warehouseman of Durham, N. C.

"T'VE KEPT TRACK OF THE BIDDIN' at thousands of
JL tobacco auctions — and I can tell you Luckies go
after the lighter, milder leaf and bid it up till they get
it. That's why I smoke Luckies myself, like most other
buyers, auctioneers and warehousemen."

As everybody knows, you get what you pay for. ..and
Luckies pay higher prices to get the finer, the lighter,
the naturally milder tobaccos. So smoke the smoke to-
bacco experts smoke. Next time, ask for Lucky Strike!

WITH MEN WHO KNOW TOBACCO BEST-
IT'S LUCKIES 2 TO 1

iIGarettES

\. W*» <!«'*♦»*»(.,•'

» Tobacco C)mpwi7

Jun

e, 1941

Tobacco Retailers and Fair Trade

By Eric Calamia
President, Retail Tobacco Dealers of America, Inc.

ETAIL Tobacco Dealers of America, Inc., came
into being in 1933 shortly before the enactment
of the National Industrial Recovery Act. Un-
der the protective features of the N. I. R. A. we
grew by leaps and bounds and were soon recognized as
an important influence in the trade. No one would
I dispute the contention that without the N. R. A. our
progress would never have been so rapid. But Lady
Fortune smiled on us then, and the trade with more
than a million outlets in every community of the nation,
had a vigorous and respected national association.

When in May, 1935, the Supreme Court of the
United States declared the National Industrial Recov-
ery Act unconstitutional, we received a severe body
blow. No longer did we have the force of the Federal
law to prevent price-cutting, the greatest evil in our
industry.

Stripped of legal protection, our trade was left
floundering and price-wars raged. Gradually, by edu-
cation and preaching of fair business practices, a little
order emerged out of this chaos, but the problem of
price-cutting is still very much with us and a constant
threat to our business. I know of nothing more demor-
alizing to the decent and ethical merchant than to be
faced with the dishonest competition of the '* loss-
leader '^ practitioner who baits his hook with below cost
prices on well-known tobacco products, only to fleece
the consumers on other merchandise once they enter
his store. Since the N. R. A. most of our efforts have
been directed against this form of unfair competition.
Our success in this direction has admittedly been mod-
erate and slow, but at least progressive. We realize
only too well that no single accomplishment would be
as appreciated by the overwhelming majority of the
retail tobacco dealers of the country as the solution of
this vexing problem.

During the past few years we have endeavored to
continue our friendly relationships with many of the
departments and administrative agencies of both the
Federal and State governments. We were particularly
effective a few years back in bringing about the elimi-
nation of the Federal excise taxes on paper book
matches with resultant savings to the retailers We
were instrumental in urging Congress to amend the
taritf laws so as to limit the importation of cigars duty-
tree by travelers. We assisted and furthered the
growth of many State and local retail tobacco trade
groups. We initiated co-operative activities of all dis-
tributive groups who were interested in fair trade
development. We fought for State fair trade laws with
much success We have vigorously opposed burden-
some tobacco taxation and last year achieved a notable
victory by bringing about the elimination of the New
York City cigarette tax. That our effort in this con-
nection was recognized by the industry is evidenced by
the tollowmg editorial comment in one of the trade
press: ^ Probably no other single force was as instru-
mental m bringing about the termination of the city
tax through the State Legislature, as our trade organ-

of^SC^--^-^-^^

Fair trade laws have been enacted in forty-five
states during the past six years— an accomplishment

unmatched in the adoption of any other uniform law in
the history of our country.

I challenge the assertion that '^the fair trade laws
have accomplished nothing for our trade.'' The indi-
vidual who makes that statement is forgetting that
every leading 5-cent cigar is under fair trade and this
constitutes almost 85 per cent, in volume of the cigar
business; that hundreds of smoking tobaccos, pipes,
tobacco accessories and allied products are also filed
under the fair trade laws ; that in a few States, notably
Ohio and California, fair trade contracts cover practi-
cally the entire range of tobacco products with the ex-
ception of cigarettes.

The opponents of fair trade have been more vig-
orous, during the past year, in their denunciation of
resale price maintenance laws than at any other time.
They made determined efforts to discredit them both
from national and State angles. They even went so far
in several States as to have introduced in the legisla-
tures proposed amendments to the fair trade statutes
which would have wrecked them completely. Here in
New York, for example, we were faced with proposed
amendments to the Feld-Crawford Fair Trade Act,
which were advanced under the guise of being helpful
and improving the enforcement of fair trade contracts,
when in fact they were intended to destroy their effec-
tiveness. Protests on our part, the drug and grocery
groups prevented that bill from even being reported
out of committee. But, those opposed to fair trade
refuse to give up their fight, despite the wide legislative
acceptance of fair trade laws and we shall have to be
continually on guard against their attempts to scuttle
the fair trade movement.

Your national association has been very active in
furthering another form of fair trade legislation known
as State Unfair Sales Practices Acts. While we feel
that the resale price maintenance laws are preferable
to all forms of fair trade statutes, we believe that until
they are more universally used by the manufacturers
of tobacco products and particularly cigarettes, there
IS need for interim legislation. Hence, our interest and
support for the proper State Unfair Practices Acts.
These laws have already been adopted in some twenty-
hve States and are essentially patterned after two
types. They all revolve around the principle of forbid-
ding sales below cost but differ in the definition of cost.
One group known as the California type provides that
selling below cost with intent to injure a competitor is
unfair competition and a penal offense and defines
retail and wholesale cost as invoice less bona fide trade
discounts except cash discounts plus the entire cost of

?T^!J^i S^J?^^.^* -7^^ ^^^^^ ^^^^P k^own as the Grocers'
Model Bill similarly declares below cost selling with
intent to injure a competitor unfair competition and a
penal offense but defines retailer's cost as invoice less
trade discounts except cash discounts plus 6 per cent,
and wholesaler's cost as invoice less trade discounts
except cash discounts plus 2 per cent.

The problem of tobacco taxation is today causing
greater concern in our industry than ever before. The
weltare of every division in the industry is dependent
upon a sane and reasonable attitude of the Government

^^.}^Yl^^ ^^^?^ ^" tobacco products. We are com-
mitted to a policy and shall continue to vigorously pro-

The Tobacco World

test the extension or continuance of State and local
tobacco taxes. It is our belief that they are burden-
some and discriminatory, and produce havoc wherever
adopted. The retail dealer, particularly, is made the
target of increased tobacco taxes. If we attempt to
add the tax to the retail price the consumers resist and
if we attempt to absorb part or all of the tax, we are
left ' ' holding the bag. ' ' Figures don 't deceive— wher-
ever there is increased taxation there is decreased con-
sumption. Some may point out in contradiction to this
statement that despite the burdensome State taxes on
cigarettes, their sales continue ahead. True, cigarette
volume is continuing ahead but its progress has been
seriously impeded by State tobacco taxes and without
them the increase would be considerably greater. As
it is, the increase for cigarette sales in 1940 was about
5 per cent as against 7 per cent, for the previous year.
Cigarette sales are continuing ahead for natural rea-
sons, but the weight of tobacco taxes will soon create a
precipitation point with resulting losses to the industry
and to the States and Federal Government for which
they produce revenue.

The annual sales of tobacco products total between
one and one-half to one and three-quarter billion dol-
lars, and failure on the part of legislators to adopt a
sensible and fair tax attitude will only jeopardize this
great industry. There is one thought I would like to
stress at this point, namely, that fair retail prices and
taxes don't ^^jell." They are entirely separate prob-
lems and must be envisioned on broad principles with
regard for the entire country and not one single com-
munity. Too often what appears to produce a fair re-
sulting price with additional taxes turns out to be a
mirage. Burdensome taxes are an evil to our industry
and it is our duty as leaders of the trade to adopt a con-
structive viewpoint that seeks permanent and lasting
benefits for the retail tobacco dealers and not to be
confused by possible temporary gains.

Shortly following our convention last year the Fed-
eral Government suggested increased excise taxes on
tobacco products for national defense purposes. As a
result of the protests from the tobacco farm States,
revisions were made in the proposed taxes and the only
increase to go through was on cigarettes, raising the
excise tax from $3 to $3.25 per thousand. If you recall,
we kept the trade aware of all developments and broad-
cast instructions to the retailers for filing on their floor
stocks. As originally drafted the Federal Defense Tax
Bill exempted retail cigarette floor stocks but a last
minute amendment changed this and compelled retail-
ers to pay 25 cents a thousand on their cigarette floor
stocks as of July 1, 1940.

Again the Federal Government, under the impetus
ot an increased and accelerated preparedness program,
IS now seeking to levy additional taxes designed to
raise increased revenues for the defense financing. It
is recommended that tobacco products bear the follow-
ing increased rates :

Cigarettes from $3.25 per M to $4.00
Cigars —

Class A from $2.00 per M to $4.00
Class B from 3.00 per M to 6.00
Class C from 5.00 per M to 10.00
Class D from 10.50 per M to 21.00
Class E from 13.50 per M to 27.00
Smoking, chewing tobaccos and snuff
from .18 per lb. to .36

When it is realized that the tobacco industry under
present taxes yields more than $600,000,000 to the
federal Government and $100,000,000 to tobacco tax

LORI LLARD'S POPULAR LEADERS

Something NEW^

has been added!

m

It's the new Old Gold-cnrichcd
with a rare imported tobacco—
so now it's better than ever!
Get more pleasure from your
Old Gold now that something
new has been added.

:|c NEW— A priiMi impoffMl tobacco, from Hio
•attcm ModHominMn— a tobacco whoto imoll
aromatic loovot impart now lifo and xott to tho
famous Old Gold bicndl So avory momonf you ipc.„
with Old Go/d will b* •von moro ottnaml thm bafaroJ

L

(?sBcrnila/uCG<xrri/u2/ru^

Amorko'i eld*i» lobocto mardMnft— Csloblnttad 1760

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BETUN, AROMATIZER, BOX FLAVORS. PASTE SWEETENERS

FRIES & BRO., 92 Reade Street, New York

i:

CIGAR BOXES

Tel. Algonquin 4-9532

i&^^^

Established 1875

-gU IKS ALE RAB(5

In 6 stock models-75i- to $6.00

Newest Ci^;ar-Box display fixture. Mak»-s
dealers )ur.k obsolete racks. Virqm terri-
tory. Aqent.? wanted.' Jobbers Mar. jfa--
turer."^ Salesmen can't rr.i-^.'; o:i these.
A!^k fcr 1941 folders today.

QUIKSALE RACK CO.

315 ■ eth Street Brooklyn, N. Y.

States, the Federal authorities will have to weigh care-
fully the wisdom of assessing additional excise taxes
on an industry already loaded down. Besides, the
members of the House of Representatives and the

Are You Getting Your Share?

Thousands of dealers are benefiting- by the increased demand for

MANILA CIGARS

More and more smokers are enjoying the sweet mellow flavor of this famous Philippine To-
bacco, grown in the valleys of eternal summer and sunshine.

They are made entirely by hand under strict government regulations and sanitary control.
INCREASE YOUR SALES WITH MANILAS. They give more smoking satisfaction for the
price than many cigars costing more.

PHILIPPINE TOBACCO AGENCY

2362 MASSACHUSETTS AVENUE, N. W., WASHINGTON, D. C.

EDWARD

The
TEN-PACK

A handy package that
outdooramen and Mr-
vice men like. Ten big
King Edwards for a
quarter. Push the Ten
Pack and increase
unit tales.

If there's an Army post or training camp, a Navy
or Marine Corps or Coast Guard station in your terri-
tory, bear down on King Edward.

America's most popular cigar is a /0^ mm^^

favorite with men in the armed

services, just as it is with

civilian smokers.

Wherever men lay

coins on the coun<

ter, there arc profits

to be made from

KING EDWARD.

iNO.H. SWISHER & SON, Inc., Jacksonville, Florida

Ma>iujcicturc7-,s oj Kuig EdxKxird Cx^^ars • 2 (or 5r

Senate should consider that increased taxes at this time
will seriously affect the tobacco farmers who must dis-
pose of their crops in the United States alone, with
toreign markets completely shut off. The crisis pre-
sented by these proposed increased taxes is a very
serious one and we hope that the Federal Government
will weigh the needs as against the fair proportionate
share that ought to be borne by all trades. Tobacco
products can no longer be classified as a luxury, they
are the normal daily requirements of probably fifty
million people m our country and already one of the
largest tax contributors to the Federal Government.
We shall be alert to all future tax developments and do
all m our power to bring to the Government's attention
the important facts concerning our welfare which
should be considered before the creation of a new to-
bacco tax structure.

to

A little over a month age President Roosevelt ap-
pointed Leon Henderson Administrator of the new
Federal body, Office of Price Administration and Civil-
ian Supply. In outlining the purposes of this new
agency, Mr. Henderson said in part, ^'We must do two
things ; balance must be maintained between producers,
and consumers must be protected. Since the manufac-
turer must make relatively long commitments, any-
thing that we can do to contribute to stability will
reheve him of worries and leave him free to concen-
trate on production.

January first of this year marked the formation of
the Cigar Institute of America, a most important step
undertaken by the cigar manufacturers to stimulate
cigar smoking and restore to the cigar industry much
ot the volume that it has lost in the past two decades.
I his IS the first time in the history of the industry that
the cigar manufacturers have joined together to under-
take institutional consumer promotion. Several times
in the last few months I have attended functions of the
cigar manufacturers and have had the opportunity to
express the willingness of the retailers to co-operate
and be an active part of this movement. The Cigar
Institute fully appreciates that the retailer's interest
m cigar selling must be rekindled and that he must be
educated to improve the display and care of cigars.
^ Retail sales promotion has taken many new trends
in the past few years. Some experts believe that we
are fast moving away from specialization and they
point to the tendency in all retail trades to take on
allied merchandise. Naturally, where the primary line
carried is not profitable or subject to ^^oss-leader"
practices or declining in volume, there is greater in-
w?. J^ ^ experiment and concentrate on allied lines.
What effect this change of emphasis will have in the
retail tobacco trade remains to be seen. We have
urged the members of our trade to keep abreast of the
times; to modernize their stores wherever possible; to
adopt progressive merchandising ideas.
. One of the most important merchandising events
m our trade is Father's Day. This year it falls on
Sunday, June 15th. I wish it were possible for more
m the retail tobacco business to realize the dividends
that will come from the time devoted to the proper

TrZfT ""^ ^,f^^''\ ^'^^' ^^^y trades are reaping
tremendous additional sales on this day and with a

i.^L"''![^ concentration on our part it should produce
unprecedented results for the tobacco industry. To-

^H^^^^''^''''^^ l"' fri' ^ ^^ natural- for Father's Day
gifts that we should be well out in front when the
returns are m.

The Tobacco WorU

'*^^*^**^»^w^pp<>y^<r<yjlLi>i»^l>ipy»^^^^y<»y^^^Hpy^y^i^

Mr. Dealer:^

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plain
ends. Save these valuable coupons for cash or
one of the seventy luxury premiums..

TUNI IN "Paul Sullivan Reviews the
News". .. every nighl except Saturday and

UMON MAOI

/-•DO .

LAA,.

RETAILERS' RESPONSIBILITIES

By William A. IIickey
Executive Vice-President R. T. D. A.
IHESE times are so grave and serious for all
of us in the United States tliat practically
every move we make must be justified on the
basis of utility and morale. I am firmly con-
vinced that we, as the representatives of the retail
tobacco dealers of the nation liave a greater responsi-
bility to work for the solution of our industry's prob-
lems tlian ever before. If we can alleviate the fears
of tlie i-etailers by eliminating unfair trade practices,
we shall have contributed much toward the National
Defense Program and strengthening the morale of the
people.

No industry has been so beset with evil merchan-
dising practices as the tobacco trade and there are few
areas in our country that are free from price cutting
of cigarettes and other tobacco products. How to solve
tliis and other problems of the trade have been the
objectives of our National Association. True, progress
has been slow, at times, but we have no right to expect
miracles overnight. Our job is to educate and elevate
a code of etliics and tliat takes time. If we had no
patience with our own businesses many of us could
never have continued, and similarly w^e cannot hasten
the processes that seek to change 'and correct abuses

Broum ir fVilliamson Tobacco Corporciiton\

that have been vears

m gi-owing. But there is one

way we shall reach our goal much sooner and that is
by greater national unity— more active cooperation
and support of our National Association.
^ Ours is a young organization— it is only nine years
since our formation and I think w^e have come a lon<»-
^-f^- ^^ l^^ve been very successful in the promotion
ot State Resale Price Maintenance Laws which have
oecn adopted in forty-five states to date," and we have
been active in urging the adoption of proper State Un-
fair Sales Practices Acts. AVe cooperated in further-
ing the enactment of the Federal Fair Trade Enabling
l^aw, the Tydings-Miller Act and are now doing a real
job m preventing its repeal. We have combated bur-
clensonie state tobacco taxes and shall continue in our
eitorts to prevent their extension. W^e served the in-
dustry faithfully during the national economic experi-
nient m 1934 and 1935 and we are well prepared to
serve the industry and our nation today.

Much of the success of an organization such as
ours IS dependent on the driving force and capabilities
or the man at the helm. I feel that we are, indeed,
^^ery fortunate in having Eric Calamia, as the presi-

America Demands

For over 25 years,
El Producto has been
setting quality stand-
ards for smokers in-
sistent on fine cigars*

EtPfflicro

Jorreal enjoyment

dent of our association. There are few men in the
tobacco industry who have a better foundation than
Eric Calamia. He has been in the retail tobacco busi-
ness for thirty-four years and knows what we are
faced with. What has impressed me most about him
is his sincerity and steadfastness of purpose. I have
never found him to w^aiver, and his judgment has
always been sound and reasonable. I look for him to
continue as our leader for many years and he can
always count on my support. To the other officers and
directors of our association, I want to extend the
thanks of the membership for your loyal and con-
scientious work on behalf of the retail tobacco trade.
I hope that out of this convention w411 come many new
and constructive thoughts to provide lasting benefits
for our trade.

f

\\\\

11 :;

i : I'l:

11

m

TOBACCONIST RENDERS
A DISTINCT SERVICE

By Albert H. Gregg

President, Cigar Institute of America

T IS certainly a fact that the retail tobacconist
renders a distinct service to his community.
That service may be so rendered as to bring-
to the retailer not only profit and growing
volume, but an enviable and enduring reputation. 1
am acquainted with one retail tobacco shop which was
established in 1756. It is still enjoying a successful
business. To me that is a very impressive fact — almost
two hundred years of successful operation — and I un-
derstand that shop is still owned by descendants of
the original proprietor. It will at once occur to you
that such a long business life must be the result of
exceptional service and the reputation for highest
quality and fair dealing.

You tobacconists handle one line of merchandise
which in my opinion oifers the greatest opportunity
for successful retail salesmanship of any merchandise
to be found in any type of retail store, and it is retail
salesmanship in particular about which I wish to talk
to you. It is retail salesmanship, well studied and
planned and well served to your public, which offers
you your great opportunity. The line of merchandise
to which I refer is your cigar line.

I can assure you that I have never yet found the
man who enjoyed fine cigars who was not ready and
glad to discuss cigars with me.

Cigars are a very personal thing to the man who
enjoys them, and they are usually a distinct hobby
with him.

You never saw a man who loved bird dogs or who
was fond of fishing who did not have a few moments
to spare for the discussion of his pet sport, and it is
identically the same with the man who likes cigars.
Let him know that you know something about cigars,
and it is almost sure that you will have to be the one
to end the conversation.

^ Is there anything a retail merchant more keenly
desires than to find customers who are interested iii
discussing his merchandise with him? This very trait
of the cigar smoker opens the door to the retail sales-
man in a way that is not true of any of the balance of
his merchandise.

Did you ever see a consumer who was interested
in a long discussion about the selection, the care and
the use of razor blades, or of toothpaste, or of chewing
gum; or, in fact, about any articles, other than cigars,
in a store where they are sold?

Once I stood in a retail store and saw a man enter
hurriedly and ask for a box of twenty-five cigars, nam-
ing the brand and size. The proprietor of that store
brought out not a box but an armful. He opened two
or three boxes, looked at them carefully and closed
them again, without ever showing them to his cus-
tomer. Meanwhile, he was talking about some excep-
tionally fine cigars which had just come in. He finally
found a box to his liking and made the sale. But wheii
that customer, who had entered hurriedly, finally left
the store at least a half hour later, he had purchased
more than five hundred dollars worth of cigars.

That merchant did not act on impulse, but had
studied his sales methods. He had studied his mer-

i2

chandise. He not only knew the cigars but he knew
the interesting tilings to say about them. He knew
how to tell his customer to care for them and how to
smoke them for his greatest enjoyment. He sold not
only one, but a half dozen sizes, and he held the cus>
tomer's interested attention from the start.

Now, the reverse of that picture is an experience
I had quite recently. I entered a cigar store and asked
for a particular cigar. The clerk said never a word,
but pointed to an open display on a rack at the side
of the store. I walked over and looked at the rack and
told the clerk I did not find there what I asked for.
The answer was short and to the point! ^^Then we
haven *t got if — and I was allowed to walk out with-
out another word spoken. That store was covered
with signs about cheap prices, but there was no one in
it who knew how to sell goods.

Again, last fall, I was passing through a town and
wanted to purchase some cigars. I stopped before the
best looking drug store I saw in the community and
attempted to buy what I wanted. I saw in the front of
the case a small size of the brand I desired, and when
I asked the clerk if he had a larger size of that brand,
he actually had to come from behind the case, lean
over and look in the front glass before he could tell
me whether they carried such a size or not.

Gentlemen, cigars have to sell. They will not sell
themselves, and price alone, with a self-service counter,
will not build a cigar business.

Again, as to your sales opportunity, cigars offer
you a chance provided by practically no other mer-
chandise you handle. I refer to the fact that because
cigars are merely the natural leaf rolled into smokeable
formation, and because the natural leaf varies as
apples vary in a barrel, no manufacturer has ever been
able to produce an absolutely uniform product. More-
over, there is great variance in the condition of the
cigars reaching the ultimate consumer.

In these facts lies your opportunity for genuine
retail salesmanship and for the development of an im-
portant cigar business.

When you sell a package of any other kind of mer-
chandise in your store, you may be sure that the same
item purchased from your competitor in the next block
will reach the consumer in identically the same condi-
tion of usable form as that in which you sell it. That
is not true regarding your cigar sales.

You can give the cigar smoker service in the selec-
tion of his cigars to suit his individual taste. You can
see that these cigars reach him in perfect condition and
you can counsel him on his own care of his private
cigars stock in order to get the maximum enjoyment
out of them.

In this way, your cigar business offers you the
opportunity of building an individual reputation for
extra quality merchandise and superior service while
marketing standard brands in general demand.

RADIO PROGRAM NOTES

Louise King, talented singer from Chicago, made
her debut as girl vocal star of Columbia's ^4'our Hit
Parade'' on the broadcast of Saturdav, May 24. The
outstanding musical program is sponsored by the
American Tobacco Company in the interest of Lucky
Strike Cigarettes.

The Tobacco World

f'i

MODEL TOBACCO Presents

one of radio's outstanding hits

"THE GAY NINETIES''

You And Ail Your Customers Will Like It
Coast to Coast Every Monday Niglit

on Criumbia Broadcasting System

CONVENTION BIG SUCCESS

HE Retail Tobacco Dealers' National Conven-
tion got under way at 5.30 P. M. on Thursday,
May 15th, when the Hon. Fiorello H. LaGuar-
dia. Mayor of the City of New York, officially
declared the Convention opened and extended the
City's welcome to the tobacco retailers of the nation.
On Thursday evening, at 8.30 P. M., the members con-
vened for the opening session and A¥illiam A. Hickey,
executive vice-president of the association, sounded
the keynote. He was followed by Eric Calamia, presi-
dent of the association, who then delivered his annual
report.^ The balance of this session included a mini-
mum of business formality so that adequate time was
allowed for scheduled talks from members of the trade
and a Father's Day pep rally.

Friday, May 16th, at 12 noon, the several conven-
tion committees met to take up many important prob-
lems such as Tobacco Fair Trade Contracts, tobacco
taxation, unfair sales practices acts. National Defense,
co-operation with Cigar Institute of America and other
industry groups. Prior to the committee meetings, the
annual elections to the Board of Directors were held
and other business matters discussed. K. T. D. A.
played host to the ladies at a guest luncheon. At 1
P. M., the directors held their annual meeting and
elected the officers for the ensuing year.

Friday evening, at 8.30 P. M., Malcolm L. Flei-
scher, the executive-secretary of the association, re-
ported on the board of directors' meeting. Mr. Ca-
lamia then called upon many of the trade leaders
from many parts of the country to describe the latest
happenings in the tobacco trade in their communities.
Resolutions were otfered for adoption at this session
embodying the recommendations from the various
committees. The outstanding event of the evening was
the address on the ''Future of Fair Trade" by the
Hon. Theodore Christianson, former Governor of Min-
nesota. The entertainment side of Friday evening in-
cluded a Quiz Program, followed by dancing.

QUIKSALE RACKS '

In an increasingly large number of retail cigar
stores throughout the country are seen one or more of
the new group of six cigar display models of the
^mksale Rack Company, 315 Eighth Street, Brooklyn,
f^- 1. The various styles hold from two to twelve
ooxes of cigars.

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter
Tt's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 67 years
15 Washington St. Newark, N. J.

Ettablishcd 1886

"BEST OF THE BEST"

It

Manufactured by

A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West. Florida

AUTOKR AFT

CIGAR BOXES

1

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-De sign-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, III.
Detroit, Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling. W. Va.

13

^':

Tobacco Merchants' Association
Registration Bureau, ^iw'!ro^"a^-

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

Eegist ration, (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 — it 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.

TRANSFERRED REGISTRATIONS
RED KEG:— 30,076 (Tobacco Leaf). For cigars, cigarettes, che-
roots and tobacco. Registered February 5, 1906, by T. A. Wads-
worth, Detroit, Mich. Transferred to Chas. A. Bengelsdorf, Bay
City, Mich., and re-transferred to B & M Cigar Co., Inc., Essex-
ville, Mich., on April 22, 1941.
LA MANDA DE CUBA:— 28,210 (U. S. Tobacco Journal), and
26,859 (Tobacco Leaf). For cigars, cigarettes and tobacco. Regis-
tered January 21, 1904, by O. L. Schwencke Litho. Co., Brooklyn,
N. Y. Through mesne transfers acquired by the American Box
Supply Co., Detroit, Mich., and re-transferred to B & M Cigar Co.,
Inc., Essexville, Mich., on April 24, 1941.
BLUE LABEL:— 317,493 (U. S. Patent Office). For cigars and
smoking tobacco. Registered September 25, 1934, by E. A. KHne
& Co., Inc., New York, N. Y. Transferred to MedaHst Co., Inc.,
New York, N. Y., on March 31, 1941.
TROVADOR:— 273,906 (U. S. Patent Office). For cigars, cheroots
and little cigars. Registered August 19, 1930, by E. A. Khne &
Co., Inc., Passaic, N. J. Transferred to Medalist Co., Inc., New
York, N. Y., on January 31, 1941.
MI REY:--46,861. For cigars. Registered by Maximiliano Gil,
Tampa, Ha., on March 24, 1941. (Certificate issued upon presenta-
tion made to us that the trade-mark or trade name herein specified,
tliough apparently not heretofore registered in any of our Affiliated
Bureaus, had been acquired by the registrant on June 24, 1940 by
a transfer from V. C. Gonzalez & Co., Tampa, Fla., whose prede-
cessors Gonzalez, Suarez & Co., Tampa, Fla., had acquired same
through mesne transfers from Pasbach-Voice Litho. Co Inc
Brooklyn, N. Y.) '

THE ABBEY :-20,207 (U. S. Tobacco Journal). For cigars. Reg-
istered June 30, 1898, by H. Bissman, New York, N. Y. Through
mesne transfers acquired by The Deisel-Wemmer-Gilbert Corp
Detroit, Mich., and re-transferred to Continental Cigar Corp'
Scranton, Pa., on April 24, 1941. ^ '

^^tPc^^ ABBE Y:-46 600 (Tobacco Merchants' Association of the
U. S.). For cigars. Registered March 1, 1937, by Continental Ci-
rlfh.r?'"?'' ''''^T^*?"'v^\V- Transferred to The Deisel-Wemmer-
C\lrr2^'^'^ Detroit, Mich., and re-transferred to Continental

MONDA CUBA:-22,167 (U. S. Tobacco Journal). For cigars, ciga-
rettes and cheroots^ Registered February 9, 1900, by The Heit-
mann-Kloeb Co., Dayton, Ohio. Transferred to American Box
Supply Co., Detroit, Mich., and re-transferred to B & M Cigar Co
Inc., Essexville, Mich., on February 14, 1922.

Internal Revenue Collections for April
Source of Revenue 1941 jg^

Cilarett;; $1,181,898.34 $ 1,039,705.72

SnlT 51,528,127.97 44,459,734.00

Tobacco,' cheWing 'and' Smoking ' '. '. [ ] [ 4,613 ^S^H 4 slsloS H

Cigarette papers and tubes ... Ill 088 84 IK 88^ or

Leaf dealer penalties ; ^'l^ ^^^'lloo

*Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based on

manufacturers' returns of production)

Month of February

Product 1041 Increase or Decrease

Pl„„ ,:^^ Quantity Per Cent

Twfst ^74?'1$8 _ 287.241 7.12

Fine-cut^chewing':::::::;:: fslilt t 55'^4^ itll

^ 14.718.571 — 1,117,163 7.05

'^°*^^ 22,630,485 - im^l ~^i5

14

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

rESSE A. BLOCH, Wheeling, W. Va Presid-n*

WILLIAM BEST, New York, N. Y Chairman Executive CommS

GEORGE W. HILL, New York, N. Y Vice-pSen!

GEORGE H. HUMMEL, New York, N. Y Vice-pJes S

S. CLAY WILLIAMS. Winston-Salem, N. C V ce-Kes S

JULIUS LICHTENSTEIN, New York N. Y .. VctKesfe

ASA LEMLEIN. New York, N. Y. ^..V.....V;.. TrllLur^

CHARLES DUSHKIND, New York, N. Y Counsel and Managing DirecS

Headquarters. 341 Madison Ave., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

HENRY J. PINNEY. Worcester, Mass PresiH..n»

EDMUND C. DEARSTYNE. Albany, N. Y ..Vc4-Pres H

J. RENZ EDWARDS. Kansas City, Kan ^ ....V... . Trllsu"

JOSEPH KOLODNY. 200 Fifth Ave.. New York. N. Y ../. '.Secretary

ASSOCIATIONS

BEN L LASCrtOW. 862 East Fifteenth St.. Brooklyn, N. Y President

R. L. Mccormick. 52 Klein Ave.. Trenton, N. J. ... ..First V c;:Pres S

•I'rJo^^-ir^NDORFF. 780 West End Ave., N^w v'ork. N Y. ExecuTivl Secri?ary
ALBERT FREEMAN. 25 West Broadway. New York, N. Y ... .Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

foHM Si^tnTR^' ^^^ Broadway. New York. N. Y President

JUHiV MAUfE Vice-Pr«»<.iH..„«

CLIFFORD M. DAWSON Trea^nr^

MALCOLM L. FLEISCHER ....".".■.■. ..!::'.!".'.;;:;;;;sec?etary

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA.
INC., 200 Fifth Ave., New York, N. Y. ;

ALVARO M. GARCIA Pr*.«.H*«J

THOMAS C. BREEN Tr^f,„r2

SAMUEL BLUMBERG "lliii^ii^iGeneral Coun4L

Executive Committee— Alvaro M. Garcia (Ex-officio), Thomas C. Breen. Harley WJ

Jefferson. D. Emil Klein, Walter E. Popper. Harry C. Carr. and Arthur

ocnw&rz*

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP. Red Lion, Pa PresidentrT

T. E. BROOKS. Red Lion, Pa vlce-pfes Sr

ARTHUR S. ZIEGLER. Red Lion. Pa TrllLurS'

RUSSELL S. STINE. Red Lion, Pa ..........■.*.■.■.■.■.■.■.".■. ■.'.'.'.Secfetar?

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

JOSE P. PEREZ, Tampa, Fla President "i

KS?5i^V?Sv^^°^^^'^l,^' "^^"^P^' ^'^ viceiPresiS '

JOHN LEVY, Tampa. Fla Treasurer

FRANCIS M. SACK. Tampa. Fla ■.■.■.■.■.'.■.■.■.'.■ Secretary

INDEPENDENT RETAIL TOBACCONISTS'

ASSOCIATION

BERNARD SCHWARZ President

ERIC CALAMIA ' First "vice- President

BENJ. FRIEDMAN Second V ctKes deSL

JOSEPH GROSSMAN ...TMrd V ctpres den 1

ARTHUR W. JONES .. Knancia" Secret Jrv

LOUIS GROSSMAN .:.; l mancial ^ecretary

BERNARD BERNSTEIN. 42 Broadway. New YorkV N." y!' ;;;;;;;;;;:;;;Secretary

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC.

JOSEPH FRIEDMAN President

JACK EDELSTEIN TrelsMrer

LEO RIEDERS, 3800 Broadway. New York, N. Y.V.V.V.'.V. *.■.■■.■.'.■■ ''.V' Secretary

Two Months Ending February 28
_ , Increase or Decrease

Product 1941 Quantity Per Cent

P^"P^ 7,629,885 + 110,311 1.47

Twist 918,276 + 37,557 4.26

Fine-cut Chewing 781,716 + 151,327 24.01

Scrap Chewing 6,982.913 — 5,021 0.07

Smoking 31,470,232 + 469,458 1.51

Total 47,783,022 + 763,632 1.62

.•r^n.^,Pr°1"^^^*^." fi^u^cs are in pounds, and are subject to revision
until published in the annual report of the Commissioner of Internal
Revenue.

LINDQUIST DIRECTOR OF REYNOLDS

E. J. Lindquist, for years Chief Auditor of the
Keconstruction Finance Corporation in Washington,
; k'' 5?^ ^^^^ elected vice-president and a director
ot the Reynolds Metals Company, of Richmond, Vir-
ginia, according to an announcement by R. S. Reynolds,
president. He will make his headquarters in Rich-
mond, home office of Reynolds Metals. His financial
background makes him exceptionally valuable to the
rapidly growing Reynolds Metals Company.

The Tobacco World

ESTABLISHED
IS8I

LIBRARr
"■c«i vail

J(1L5 1911

jJ'lT*

1941

TOBACCO BUSINESS
CONTINUES TO RISE

Although the Internal Revenue Bureau

states that the figures in its monthly

releases giving "comparative data of

tax-paid products" do not represent

quantities of products withdrawn for

consumption or sale, the figures are

• based on sales of revenue stamps, so that

they do represent comparative sales over

a period.

Certainly, a continued increase in the
sales of U. S. tobacco products is indi-
cated in the month-after-month gains in
the sales of revenue stamps, such as in
May, for instance, when such gains were
recorded for the total of all classes of
cigars, little cigars, cigarettes, large
cigarettes and snuff. Only declines were
registered by chewing and smoking to-
bacco, and Class B cigars.

O

■ i

'. I

Craig Wood

WINNER OF

MASTERS TOURNAMENT

1941

Copyright 1941, Liccett & Myers Todacco Cq.

HoBABT B. Hankins — Eaitut

Business Mcmager—B. S. Phillips

THE TOBACCO WORLD

Vol. 61

JULY, 1941

No. 7

change will be noted in the caption of statis-
tical data appearing in this issue. As usual,
the monthly and cumulative figures are pro-
vided by the Tobacco Merchants Association
of the United States, but. not as usual, they bear a
different title than the traditional '^withdrawals for
consumption. ' ' Let the association explain the reason
for the change.

E have in the past been using the caption,
*' Withdrawals for Consumption,'' for our
monthly Tobacco Barometer Supplements,
reads a note accompanying the May report,
setting forth the figures released by the Bureau of In-
ternal Revenue based on sales of revenue stamps. Sim-
ilarly, in our Annual Barometer these statistics have
been designated *' Tobacco Products Withdrawn for
Consumption,'' coupled with the explanatory note,
' ' Computed from collections from the sale of Internal
Revenue tax stamps," thus conforming to the heading
used in the Annual Reports of the Commissioner of In-
ternal Revenue. In this connection, it is to be noted
that for the current fiscal year the Internal Revenue
Bureau's monthly releases giving '' comparative data
^l l^^c'Rt P^'^^^cts have coupled with the statement
that the figures are based on sales of revenue
stamps" the additional specific statement that the
hguresj'do not represent quantities of products with-
drawn for consumption or sale." As will be seen from
the present issue of the Tobacco Barometer Supple-
ments we have accordingly changed the caption of the
statistical data therein presented to read '^Compara-
M Q ^^^ ""l Tax-paid Tobacco Products Based on
May Sales of Revenue Stamps." End quote from the
merchants association. The change does not affect the
value of the statistics as reflecting the up or down
trend in withdrawals for consumption and sale

E have been wondering what Phil M. Phulofax
thinks of the Promotional March of Time, the
Retailer's Calendar, a two-page feature of the
Airv. sixth (1941) edition of the Tobacco Retailers'
Almanac, published by the Retail Tobacco Dealers of
veXrSr-' ^^^,««^v^,nir of its ninth annual con-

SpH;oT^77^ ^^''^''F^ ""^""^ ^^^ «^ *^^ Calendar,
of^m-l ^ ^"^ find inspirational dope for the promotion
for Pvf ^ cigarettes, tobacco and smokers' requisites
iood t^'r''*.^'".*^'^^^^ What did we find? A
IZ\1 J?^}^'' ^''* inonth'covered-June-which
Too l^^^'f Y^ over when the Calendar was received,

were *' i^.t f ^/^""^ n^^"* 'V^'' ^'^'^' Retailers
SphP K^''.i^^''^"'"f •• ^'?^'' ^y ^^^ box for Dad-
cigarettes by the cartons-individually boxed pipes-
razois— razor blades— smoker's novelties. Other Fath

er 's Day gifts. What are you doing to make your men 's
trade ''cigar conscious?" There is not even a remote
mention of tobacco or tobacco products for July, none
for August (except ash receivers), none for Septem-

ber. For Ortobpr fjjpro io fliio ^rir^ri*yr.^^ri^.^..4^:„,,

I ipes and pipe smoking accessories find a ready mar-
ket during these brisk Autumn days— a pipe window—
a combination pipe and tobacco offer brings results-
install a tobacco bar— for mixing customer's special
Qlends." No tobacco plug for November. For De-
cember—"The Cigar Counter should reach its peak
volume for the year during December. Make it the
best-dressed counter in the store. This is your 'natural'
gitt line. Make the most of it<" For January, among
Home Needs are mentioned boxes of cigars— cartons of
cigarettes— smokers ' articles, such as ash trays and
hghters. That ends the tale, for there is not a single
mention of tobacco or tobacco products in the promo-
tion program for February, March, April and May.
ilow tar would a tobacco retailer get with such a year's
promotion ' ' ? What do you say, Phil ?

T IS reported from trade sources that tobacco
growers ' prices in Japan have been increased
in the last two years by a system of overgrad-

^ ./"§'. ^b^^b' ^^ ^^^^^y lowers the grade stand-
ards ot leaf tobacco. Estimates place the price increase
at about 5 per cent, in 1939 when overgrading began A
continuation of the policy during 1940 brought a price
1 QQQ^t'^ i^"" growers of about 15 per cent, above the
19^8 level ; and overgrading for that year progressed
to a point where there were approximately two grades
of difference between the original grade standards and
the new specifications. Considering these factors, it
IS estimated that for tobacco of the same quality there

f:Lnl938'an^^^^^^^ ^'" '' ^^^^^ '' ^^ -^^- ^-

A

XPORTS from Japan to Germany have de-
creased by about 50 per cent, owing to the diffi-
culty of securing shipping space on the Trans-
Siberian Railway. Transportation costs to
(rermany have risen since the outbreak of the war un-
til freight charges are reportedly higher than the mar-
ket prices of leaf at the point of loading. A cigarette
shortage (the cause of which is unknown) has pre
vailed m Japan for more than a year. Supplies of leaf
have been considered ample to Zeet demaS and the
authorities claim to be producing more cigarettes than
ever before Nevertheless a definite sLrtTge prl^^^^^^^

st"uc'te;t?n"H \ l'^'' >^^f ^ ^^^^P« ^^^^ been n
stiucted to limit their cigarette sales to one package a

day for each person, and the buyer must pVLent an

empty package to the dealer in exchange for a new one

Penalties are leveled against any store found vToTatW

the new consumption regulations. It is expected tW

the rationing system will also be applied in oTher cities

May Was a Fair Month for Tobacco

Revenue Stamp Sales Increase for
all Major Classes of U. S. Tobacco
Products Save Chewing and Smoking

ALES of revenue stamps for all major classes
of U. S. tobacco products with the single ex-
ception of chewine: and smoking tobacco, in-
creased in May this year over the same month
last year, according to the Supplement of the Tobacco
Barometer of the Tobacco Merchants Association of
the United States. Among cigars, only Class B failed
to contribute to the general gain. For Philippine
Islands and Puerto Rico products, the report is not so
favorable, the former showing no plus signs, and the
latter registering an increase in cigarettes only.

All classes of cigars in the U. S. totaled 475,067,-
340, as compared to 469,313,069, a rise of 5,754,271, or
1.23 per cent. P. I. cigars totaled 12,920,545, as com-
pared to 23,627,891, a drop of 10,707,346, or 45.32 per
cent. P. R. cigars totaled 29,975, as compared to 72,-
250, a loss of 42,275. Grand total was 488,017,860, as
compared to 493,013,210, a decline of 4,999,350, or 1.01
per cent.

Class A cigars in the U. S. totaled 421,720,530, as
compared to 417,055,805, an increase of 4,664,725, or
1.12 per cent. P. I. and P. R. losses converted this to
a class decrease of 6,037,405, or 1.37 per cent.

Class B cigars in the U. S. totaled 3,522,090, as

Product May, 1941

Cigars :
Class A —

United States 421,720,530 -f

Philippine Islands ... 12,887,010 —

Puerto Rico 13,625 —

Total 434,621,165 —

Class B —

United States 3,522,090 —

Philippine Islands . . . 2,350 —

Puerto Rico 3,700 —

Total 3,528,140 —

Class C —

United States 46,026,830 +

Philippine Islands . . . 29,075 —

Puerto Rico 12,650 —

Total 46,068,555 +

Class D —

United States 3,462,360 +

Philippine Islands . . . 510 —

Puerto Rico

Total 3,462,870 +

Class E —

United States 335,530 -f

Phihppine Islands ... 1,600 —

Puerto Rico

Total 337,130 +

Increase or Decrease
Quantity Per Cent.

4,664,725

10,687,555

14,575

1.12
45.34

■ • • •

6,037,405

1.37

46,150

8,650

15,200

1.29

• • • •

• • • •

70,000

1.95

970,742

4,491

12,500

2.15

• • • •

• • • •

953,751

2.11

95,186
6,040

2.83

• • • •

• • • •

89,146

2.64

69,768
610

26.25

• • • *

• ■ • •

69,158

25.81

compared to 3,568,240, a decline of 46,150, or 1.29 per
cent. The diminution of P. I. and P. R. sales brought
the class loss up to 70,000, or 1.95 per cent.

Class C cigars in the U. S. totaled 46,026,830, as
compared to 45,056,088, a gain of 970,742, or 2.15 per
cent., which was reduced to 953,751, or 2.11 per cent.,
by P. I. and P. R. declines.

Class D cigars in the U. S. totaled 3,462,360, as
compared to 3,367,174, a rise of 95,186, or 2.83 per
cent. A P. I. drop from 6550 to 510, reduced this gain
to 89,146, or 2.64 per cent.

Class E cigars in the U. S. totaled 335,530, as com-
pared to 265,672, an increase of 69,768, or 26.25 per
cent., which became 69,158, or 25.81 per cent., when the
P. I. loss was deducted.

Cigarettes in the U. S. totaled 17,858,111,310, as
compared to 16,274,867,793, a gain of 1,583,243,517, or
9.73 per cent.

Little cigars in the U. S. showed a gain of 7,785,-
426, and large cigarettes 13,725.

Snuff totaled 3,609,796, a gain of 4.13 per cent.,
and chewing and smoking tobacco, 25,621,949, a loss of
835,436, or 3.16 per cent.

Following are the comparative figures:

Increase or Decrease

Product May, 1941 Quantity Per Cent.

Total All Classes:

United States 475,067,340 + 5,754,271 1.23

Philippine Islands ... 12.920,545 — 10.707,346 45.32

Puerto Rico 29,975 — 42,275

Grand Total 488.017,860 — 4,995,350 Toi

Little Cigars:

United States 11,605,133 + 7,785,426

Philippine Islands ...

Puerto Rico

Total 11,605,133 + 7,785,426 ....

Cigarettes:

United States 17,858,111,310 + 1,583,243,517 9.73

Phihppine Islands . . . 6,400 — 24 000

Puerto Rico 359,600 + 119,'520

Total 17,858,477,310 + 1,583,339,037 9.73

Large Cigarettes:

United States . 156.015 + 13,725 9.65

Philippine Islands ...

Puerto Rico — 25,466 '.'.'.'.

Total 156,015 — 11,675 6.96

Snuff (lbs.):

All United States ... 3,609,796 + 143,120 4.13

Tobacco (Chewing and
Smoking) lbs.:

United States . 25,621,949 - 835.436 3.16

Philippine Islands ....

To'a" 25.621,949 — 835,436 ~7l6

luJZRe.^Z'Butll'''' "' ""'^ .ax-paid products relea^

. The Tobacco World

Months

'^1

Only Large Cigarettes Fail to Show
Gain in Sales of Revenue Stamps for
Comparative Period of Fiscal Year

N the first 11 months of the fiscal year 1941,
sales of internal revenue stamps registered in-

Class B cigars in the U. S. totaled 38,720,680, as
compared to 38,289,174, an increase of 431,506, or 1.13

>-.xv.iiov.& ill LVLx^ majui ciaooillccllluil Ui lUUfclCCU F'"^ v^t-iiv. j.lJt3 v^uiiiuiiiatiwil Ui it 1 . X. gain yOKJ^XJ'kO ) HHU

products excepting large cigarettes, it is re-
vealed in the Supplement to the Tobacco Barometer
of the Tobacco Merchants Association of the United
States. The only minus sign among cigars was for
Class E. Philippine Islands registered gains in cigars
of Classes B, C and E, and in chewing and smoking
tobacco. Puerto Rico gained in cigars of Classes D
and E.

Cigars of all classes in the U. S. totaled 5,049,019,-
289, as compared to 4,858,589,901, an increase of 190,-
429,388, or 3.92 per cent. P. I. cigars totaled 160,213,-
548, as compared to 201,494,658, a drop of 41,281,110,
or 20.49 per cent. P. R. cigars totaled 1,397,535, as
compared to 1,519,300, a decline of 121,765, or 8.01 per
cent. Grand total was 5,210,630,372, as compared to
5,061,603,859, a gain of 149,026,513, or 2.94 per cent.

Class A cigars in the U. S. totaled 4,497,035,565,
as compared to 4,334,037,170, a rise of 162,998,395, or
3.76 per cent. P. I. and P. R. losses reduced this ffain
to 121,501,470, or 2.68 per cent.

1st 11 Mos.
Product Fiscal Yr. 1941

Cigars :

Class A —

United States 4,497,035,565 +

Philippine Islands ... 159,327,035 —

Puerto Rico 726,035

I'otal 4,657,088,635 +

Class B —

United States 38,720,680 +

Phihppine Islands . . . 162,406 +

Puerto Rico 227,450

Total 39,110,536 +

Class C —

United States 473,513,158 +

Philippine Islands ... 372 747 +

Puerto Rico 441,650 -f-

Total 474,327,555 +

Class D—

United States 35,712,215 +

Phihppine Islands ... 70 975 —

Puerto Rico 2,400 -|-

Total ~, 35,785,590 +

Class E —

United States 4,037 671

Philippine Islands ... '280',385 4-

Puerto Rico ......

Total ~, 4,318,056 +

•^"^3'. 1941

Increase or
Quantity

162.998,395

41,355,810

141,115

Decrease
Per Cent.

3.76
20.61

121,501,470

2.68

431,506

50,945

8,350

1.13

• • • •

• • • •

474,101

1.23

24.493.610
55,782
27,500

5.45

■ • • •
• • • •

24,576,892

5.46

2,636.113

179,421

200

7.97

• • • •

• • • •

2,456.892

7.Z7

130,236
147,394

3.12

• • • •

• • • •

17,158

0.40

a P. R. loss (8350) served to increase this to 474,101, or
1.23 per cent.

Class C cigars in the U. S. totaled 473,513,158, as
compared to 449,019,548, an advance of 24,493,610, or
5.45 per cent. This was increased by P. I. and P. R.
gains to 24,576,892, or 5.46 per cent.

Class D cigars in the U. S. totaled 35,712,215, as
compared to 33,076,102, a gain of 2,636,113, or 7.97 per
cent. A P. I. loss (179,421) and a P. R. gain (200) re-
duced this to 2,456,892, or 7.37 per cent.

Class E cigars in the U. S. totaled 4,037,671, as
compared to 4,167,907, a decline of 130,236, or 3.12 per
cent. A P. I. gain of 147,394 wiped out this loss and
the class registered a gain of 17,158, or 0.40 per cent.

Cigarettes in the U. S. totaled 171,244,341,563, as
compared to 160,114,513,470, an increase of 11,129,828,-
093, or 6.95 per cent.

Little cigars gained 18,185,535, or 14.80 per cent. ;
snuff 527,675 pounds, or 1.51 per cent. ; chewing and
smoking tobacco, 1.10 per cent.

Following are the comparative figures :

1st 11 Mos.
Product Fiscal Yr. 1941

Total All Classes:

United States 5,049,019,289

Philippine Islands ... 160,213,548
Puerto Rico 1,397,535

Grand Total 5,210.630,372

Little Cigars:

United States 141,069,345

Philippine Islands ...

Puerto Rico ......

Total 141.069,345

Cigarettes:

United States 171.244.341,563

Philippine Islands ... 264 942

Puerto Rico 3,112,'415

Total .171,247,718,920

Large Cigarettes:

United States 1 431 941

Philippine Islands ... 780

Puerto Rico 127,785

Total 1,560,506

Snuff (lbs.): "

All United States ... 35,400,896

Tobacco (Chewing and
Smoking) lbs.:

United States 280,354,978

Philippine Islands ... \2

Total "^ 280,354,990

♦Compiled from comparative data of
monthly by Internal Revenue Bureau.

Increase or Decrease
Quantity Per Cent.

+

190,429,388

41,281,110

121,765

3.92

20.49

8.01

-f 149,026,513

2.94

-t- 18,185,535

14.80

• • • •

• • • •

-f- 18,185,535

14.80

+ 11,129,828,093
— 507.398
-- 240,525

6.95

• • « •

• • • •

+ 11,129,080,170

6.95

— 727,019

— 2.395
-- 79,015

33.67
38.2i

— 808,429

34.13

+ 527,675

1.51

+ 3,046,112
+ 5

1.10

• • • •

+ 3,046,117

1.10

tax-paid products released

I trill

Challenges to Trade Associations

By Leo Shapiro
Eetail Tobacco Dealers of California

HE world today stands at the crossroads.
Either civilization will go forward developing
a higher standard for mankind or it will fall
back into the dark ages. Its possibilities de-
pend upon the firm determination of the righteous peo-
ple of the world toward civilization. National social-
ism, communism and fascism, it is said, are caused by
maladjustment in the economics of the world. Lack of
opportunity and poverty are said to be the strongest
foundations for their causes and spread.

Naturally, the conditions which are now spreading
throughout the world vitally affect our ways of think-
ing and living. We cannot maintain an isolated life
in a world brought close together by fast transporta-
tion and communication. It must be conceded that ut-
terances and actions by people in Europe and Asia
vitally influence our method of living and our conduct.
The United States has become a world power, and in-
dications point to the fact that its influence will con-
tinue to grow in world affairs.

We, therefore, must place ourselves in a position
to demonstrate visibly that men living under freedom
can accomplish more for civilization and human prog-
ress than those living under different circumstances.
In the next few years, America will be in a position to
make the greatest contribution ever made to civiliza-
tion by demonstrating that real progress can be made
in humanitarian values only under our ways of living.
Industry can do a large part in making such con-
tributions. Is industry going to stand still at a time
when its very existence is threatened unless it can jus-
tify its survival in a free country? It is maintained
that America with its tremendous progress in mass
production and distribution can make the life of the
average person a great deal happier. One needs only
to look at the record of this country to learn what the
possibilities have been in the past and what they are in
the future if we dedicate ourselves to the coordination
of the efforts of the people of this country.

We are a country which suffers not from the want
of things. We have ample territory in which to pro-
duce. We have the brains and ability. What we need
is a mihtant coordination of these God-given heritages
to be utilized for the connnon benefit of all. Individuals
cannot do the tremendous job which is necessary. It
demands the cooperative endeavors or working as a
unit of industry, agriculture and labor as a whole to
meet the exceedingly difficult problems which confront
all of us today and tomorrow.

It is not only necessary for business to meet the
demands of a war economy, but to be prepared to meet
the tremendous difficulties which generally ensue in a
post-war period. Either or both of these economies un-
less carefully restrained and managed can destroy the
very things that every American holds close to his
heart : freedom of action, thought and religion.

Let no one have the mistaken idea that the world
will be the same as it is today after the war is over,
btudy the present economic status in England. The
brunt of the war is being borne by the working classes,
and they are now dominating England's future course.
We, too, are being geared to tremendous efforts
tor national safety. Our industrial capacity will be

6

strained to the limit. We must train men for this great
effort. Our national debt will be staggering. The Gov-
ernment is building plants. What are we going to do
about all of the things we are creating for a war
economy when peace conies? There certainly will be a
tremendous slack in the production of materials for
armament. We nmst be prepared to meet those serious
situations when they arise. We can do so only by care-
ful and thoughtful planning in advance. We should
and can develop a post-war economy which will enable
Americans to attain the greatest standard of living yet
realized. It is maintained that such an economy can
be developed by an increase of the purchasing power
of the masses sufficient to buy goods at a price which
they can afford to pay.

Now, then, in order to enable us to assume the
tremendous responsibilities which are ours, not only
for the preservation of our own ways of thinking, but
to be the beaconlight which others will follow, we nmst
build solid foundations.

If industry is to be an instrumentality through
which we are to attain these objectives, we must imme-
diately bring about a better understanding between
business men, labor and government.

This can be done through trade associations.
These organizations of business men work together in
trade groups which may be termed as a scientific
laboratory for the purpose of studying ways and
means to meet the challenge which confronts Ameri-
cans today, and to overcome any obstacles which en-
danger the ways of our living.

Many challenges confront the modern trade asso-
ciation. First, a plan must be initiated whereby
business can work closer to the national, state and local
governments. Under this subject, much can be done.
We are faced with tremendous burdens of taxation.
No one begrudges money spent for national defense.

There are a tremendous number of unnecessary
taxes in America today. For many years our leaders,
including the late President Coolidge and our present
President Roosevelt, warned against burdens of taxa-
tion. They said concisely that high taxes reach every-
one and burden everybody— that if they are excessive
they are reflected in idle factories, tax-sold farms and
in the increase of unemployment.

Workers may never see a tax bill, but they pay by
reduction m wages and increased cost of what they
buy. Labor itself has awakened to the tremendous bur-
den of taxation.

Many employees are asking for information about
taxes affecting business, which demonstrates the fact
that the employee today is becoming increasingly
alarmed.

The attitude of the employee in that connection is
a tavorable omen because, after all, the employee is
oust as vitally interested in the problems of taxation as
is the business man.

^ The next challenge is the necessity of educating
business men in all the facts of the present economic
situation.

Stocks of Leaf Tobacco Reported

(Continued on Page 12)

The Tobacco World

TOCKS of leaf tobacco owned by dealers and
maimfacturers in the United States and Puerto
Rico on April 1, 1941, totaled 3,111,788,000
pounds compared with 2,899,884,000 pounds on
April 1, 1940. Total stocks were 122,752,000 pounds
higher than on January 1, 1941, and 211,904,000 pounds
higher than on April 1, 1940.

Stocks of flue-cured tobacco were reported as
1,500,957,000 pounds on April 1, 1941, a decrease of
armiTid 12.^ million nnmirlc fvoi^i cfrv^Vo ^f To,>,,„,.,^ i

1941, and about 179 million pounds higher than on
April 1, 1940. Stocks of type 11 on April 1, 1941, were
reported as 559,133,000 pounds; type 12 as 547,861,000
pounds; type as 273,175,000 pounds; and type 14 as
120,788,000 pounds.

Fire-cured stocks of tobacco of all types w^ere re-
ported as 194,858,000 pounds on April 1, 1941, com-
pared with 176,268,000 pounds on April 1, 1940. Total
stocks were about 73 million pounds higher on April 1,
1941, than on January 1, 1941. Virginia fire-cured^
type 21 stocks were reported as 35,478,000 pounds;
type 22 as 113,148,000 pounds ; type 23 as 45,577,000
pounds ; and type 24 as 655,000 pounds.

Stocks of hurley were reported as 834,749,000
pounds on April 1, 1941, about 96 million pounds higher
. than on January 1, 1941, and around 21 million pounds
higher than on April 1 a year ago. Southern Maryland
tobacco, type 32, stocks were reported as 34,427,000
pounds compared with 29,063,000 pounds on April 1,
1940. These stocks during the period January 1, 1941.'
to April 1, 1941, decreased about 6 million pounds.

One Sucker stocks on April 1, 1941, were 41,147,000
pounds or about 11 million pounds higher than the pre-
vious quarter of January 1, 1941. Green River stocks
reported as 35,107,000 pounds were about 4 million
higher than a year ago. Stocks of other types on April
1, 1941, were as follows : Virginia sun-cured, 4,435,000
pounds; Eastern Ohio, 799,000 pounds; Perique,
1,010,000 pounds; other miscellaneous domestic, 909,000
pounds ; and foreign-grown cigarette and smoking to-
bacco (Turkish and other), 98,583,000 pounds.

Stocks of American-grown cigar-filler tvpes
amounted to 192,571,000 pounds on April 1, 1941, a
decrease of about 6 million pounds from the stocks' of
April 1 a year ago. Type 41, Pennsylvania Seed-leaf
stocks, were reported as 113,841,000 pounds ; type 42,
Gebhart, 16,437,000 pounds; type 43, Zimmer, 12,550,-
000 pounds ; type 44, Dutch, 8,761,000 pounds ; tvpe 45,
Jjeorgia and Florida sun-grown, 1,388,000 pounds ; and
type 46, Puerto Rican, 24,599,000 pounds in Continental
United States and 14,995,000 pounds on the Lsland.

The cigar-binder type stocks were about 3 million
pounds higher on April 1, 1941, than they were on April
i:io r^?-^ "^^^^^ binder type stocks were reported as
142,5o4,000 pounds. Type 51, Connecticut Broadleaf,
stocks were 28,044,000 pounds; type 52, Connecticut
flavana Seed, 25,415,000 pounds ; type 53, New York
and Pennsylvania Havana Seed, 3,367,000 pounds-
type o4. Southern Wisconsin, 38,470,000 pounds ; and
type 55, Northern Wisconsin, 47,258,000 pounds.

Shade-grown wrapper type stocks were reported
on April 1, 1941, as 12,441,000 pounds, a decrease of
iQ^^n % ^^^il^ion pounds from the stocks of April 1,
1^40 Connecticut Shade stocks were 9,146,000 pounds
and Georgia and Florida Shade 3,295,000 pounds.
TT ./J^^ foreign-grown cigar leaf tobacco stocks in the
united States on April 1, 1941, consisted of 8,140,000
^^^h, 1941

pounds of Cuba (Havana) tobacco, 3,362,000 pounds of
Java and Sumatra, and 5,712,000 pounds of Philippine
Islands (Manila) tobacco.

The figures quoted for type totals are the sums of
unstemmed and stemmed leaf as reported. A table is
included in this report showing Burley stocks sub-
divided according to quality for each quarter since
1936. Tables are also included showing stocks on a
farm-sales-weight basis, and stocks owned by manufac-
--t — ^ ci.i^ v*;^c**v.io fecpciictit;ij . iijc uuiaiieu report
shows all stocks subdivided according to groups recog-
nized in the trade.

The U. S. Bureau of Customs has announced pre-'
hmmary figures for imports of conmiodities within the
quota limitations provided for under the Philippine
Independence Act, as amended by the Act of August 7,

i?^?'.^?*^?^ *^^ beginning of the quota periods to May
dl, 1941, inclusive, as follows :

Cigars, established quota for calendar year, 190 -
000,000; imports as of May 31, 60,112,526. '

Scrap tobacco and stemmed and unstemmed filler
tobacco, established quota for calendar year, 4,275 000
pounds ; imports as of May 31, 2,140,186 pounds. '

((

PENTHOUSE PARTV FOR CAMELS

Til ' P^iithouse Party, ' ' a spirited new series starring
Ilka Chase, replaces ^'Al Pearce and His Gang'' for
the summer as the R. J. Reynolds Tobacco Company's
h riday evening program on the Columbia network, it
was announced. The hot weather series is heard
in Pearce 's rebroadcast period, 10:30-11 P. M., over
mnety-six CBS stations for Camel cigarettes and
Prince Albert smoking tobacco.

^ ^'Penthouse Party" keeps the atmosphere of a
social evening on top of one of New York City's sky-
scrapers. Miss Chase, as hostess, chats informally
with famous guests and directs the entertainment.
Music IS furnished by Yvette, the 18-year-old singer
trom New Orleans who has taken New York night
clubs by storm, and by Paul Baron and his orchestra.
rJert Parks is announcer.

r^TJo"^^^ ^- •^^ ^^ynolds Tobacco Company's other
CBS program ^^Blondie," is broadcast on seventy-six

in Qnfi ^^^^^^,,^^<^"d^y at 7:30-8 P. M., rebroadcast
10:30-11 P. M., also m the interest of Camels and
Prince Albert It stars Penny Singleton and Arthur
Lake m the roles which they created in motion pictures
m^c.^^ compaiiy recently renewed its contract with
C±J^ tor the Friday evening spot for the 1941-42
broadcasting season. R. J. Reynolds, one of Colum-
bia s veteran sponsors, is now in its 422d week of ad-
vertising on CBS. Its account is handled by William
Esty and Company, Inc.

AIDS NEW YORK FUND

Former Postmaster General James A. Farley has
announced that the Liggett & Myers Tobacco Cof, has
increased its contribution to the Greater New York
Fund this year from $15,000 to $25,000.

GENERAL RENEWS SWING

The General Cigar Company has renewed its Ray-
mond Gram Swing news series over seventy-six sta-
tions for White Owl cigar through J. Walter Thomp-
son Company for fifty-two weeks, beginning June 23

Tobacco Situation in United Kingdom

OR some time British manufacturers have been
unable to obtain sufficient leaf tobacco to meet
the current demand for their factories. In
order to conserve stocks, therefore, they
reached an agreement with the Government last Au-
gust to restrict their withdrawals from bond to 90 per
cent, of the weight of the corresponding monthly with-
drawals during the base year, April-March, 1939-40.
Consumer demand has risen rapidly since the begin-
ning of the war, according to a report from Acting
Agricultural Attache Alton T. Murray, and it is esti-
. mated that, had the leaf supply continued unrestricted,
consumption of tobacco in the United Kingdom would
have increased by approximately one-tenth or more.

Actual tobacco consumption in the United King-
dom during the calendar years, 1939 and 1940 (five
months of which were within the 90 per cent, restric-
tion period) averaged about 195 million pounds, repre-
senting an increase of 10 per cent, as compared with
the 4-year period immediately preceding the war.
Domestic tobacco consumption in the United Kingdom
has been characterized by a steady, upward trend for
several years, the annual increase ranging around 5
per cent. The record consumption of 199 million
pounds, recorded in 1939, was partly due to the impe-
tus of impending war events ; and the subsequent de-
cline to 191 million pounds in 1940 reflects the effect of
manufacturers' restricted withdrawals from bond dur-
ing the last five months of the year. Regardless of de-
mand, however, consumption during 1941 will arbi-
trarily decline further (unless the restriction is lifted)
to approximately 90 per cent, of what it was from
April, 1939, to March, 1940, when approximately 200
million pounds were used by United Kingdom con-
sumers.

Those supplies available to the civilian population
are at most only 90 per cent, of the consumption dur-
ing this base period. Actually the percentage is prob-
ably less in view of the preference given to the armed
forces and considering the losses resulting from war-
fare. The gap created by the increase in consumer de-
mand and the reduced rate of manufacture has re-
sulted m a shortage of tobacco products throughout
the entire country, thus leaving to manufacturers the
difficult task of rationing wholesalers and retailers
Moreover, distribution problems have arisen through
the shittmg of population for evacuation purposes and
through the expansion of industrial production in some
areas.^ Distributors have tried to meet the difficulties
by hxing retail quotas, but there is considerable com-
plaint Distribution by slot machines has practicallv
ceased, owing to complications arising some time ago
trom successive increases in the retail price

A large part of the increase in tobacco demand has
been brought about by war conditions, in which mil-
lions of men and women working under strain and
through long hours have smoked more per person.
Another factor is increased purchasing power arising
trom expansion in industrial production

The demand is chiefly for cigarettes. Popular
brands retail for ls.6d. (30 cents) for twenty, ofap-

Curfi^^^^^^^ %^'''' ^'^"^ '^ ^^^^i^^- brands in
the United States. The present import duty on for-

Ti^J^ ""^^^ i" ciprette manufacture is 19s.6d.
($3.92) per pound. There has been a tendencv toward
an artihcial price increase by reducing the size of the
8

more popular brands. New, small brands are also be-
ing introduced.

Manufacturing difficulties have increased since the
war. Owing to a shortage of cardboard, consumers
have been urged to return packages to retailers for re-
filling. Despite these difficulties, manufacturers could
increase their output if more leaf tobacco could be
obtained.

FRED WINTER PASSES

RED WINTER, of the Winter Cigar Co., prom-
inent distributing firm of Denver Colo., died
in that city on Monday, June 2d, after an ex-
tended illness. Mr. Winter, who had been en-
gaged in the tobacco industry more than a half cen-
tury, and who w^as widely known as one of the most
progressive and outstanding wholesale tobacco dealers
in the United States, achieved national prominence
when he was elected chairman of the board of directors
of the National Association of Tobacco Distributors at
the last convention of the organization in Chicago in
January, 1941.

Mr. Winter w^as born in Nassau, Germany, on Sep-
tember 7, 1867. At the age of 14 he arrived in the
United States and settled in Urbana, Ohio, where he
served his apprenticeship in the cigar industry. He
married Miss Libby Holman of that city in. 1891 and
shortly thereafter came to New York City where he
engaged in the cigar manufacturing business for a
brief period.

With his brother Carl, who died in 1934, Mr.
Winter went to Denver almost fifty years ago and
formed the Winter Cigar Co. Mrs. Winter died in
Denver in 1912.

Since the formation of the N. A. T. D., Mr. Winter
has been one of its most active and determined leaders
He served as a director in 1937 and 1938 and was
elected a vice-president in 1939, which office lie con-
tinued until he was designated chairman of the board
ot directors at the last annual convention of the asso-
^[^^^at^'a Ai, *iL^ ^"^^^ ^^^ assumed the chairmanship of

AT A rif-T?-.-^-' ^^ ^^^ ^^^^ ^^ ^^™- ''No one in the
^,A. i. D. IS more respected or admired than Fred
Winter and no one has the best interests of the asso-
ciation at heart more than he. Noted for his straii^ht-
forwardness, Mr. AVinter is intolerant of trickerv or
double dealing. Everything must be on the ^up'and
up with Fred That is why he enjoys such a vast
friendship m the industry.''

Funeral services were held in Denver on Wednes-
"^i^^ *^i^^l^ ^}^\ ^^»d were attended not only by a host
ot his friends m Denver, but also by manv representa-
tives of the tobacco industry, including several of the
directors of the N. A. T. D., among whom were Joseph
Kolodny, executive secretary; J. Renz Edwards, treas-

Zf'^^T^.^'^^Xr^'"''''^ ^^"^ Grossman, Chicago,
and Stanley Stacy, Milwaukee.

fnr. i^Qo ^,^^'^^^f/i'^et's survey of retail tobacco stores

iZ.Joi^a''''' the lowest average cost of doing busi-
ness at 20.6 per cent.

Also the figures of the U. S. Department of Cora-

^e1.?J'fP"''''" "' ^'''^ ^^"^"^' «°"fi"" 20 per cent, as
being tlie mimniuni cost of doing business for retail
tobacco dealers.

The Tobacco World

HARRIS DISTRIBUTORS' CHAIRMAN

DWARD W. Harris, head of Hamilton, Harris
& Co., Indianapolis, Indiana, has been elected
chairman of the board of directors of the Na-
tional Association of Tobacco Distributors, as
successor to the late Fred Winter of the Winter Cigar
Co., Denver, Colorado, who died in that city on June
2d. In selecting Mr. Harris to serve as their chair-
man, the directors of the N. A. T. D. recognized and
paid tribute to the valuable services he has rendered
to the association since it was founded. Mr. Harris
took a leading part in the activities which led to the
formation of the N. A. T. D. in 1932, and has served
coiitiiiuouSiy as a director. Perhaps no one in the
United States is better qualified from the standpoint
of experience and full understanding of the distribu-
tor's problems to serve as chairman of the N. A. T. D.
Mr. Harris has been engaged in the tobacco business
continuously for forty-three years.

In addition to his business activities, which in-
clude the sponsorship of a new radio broadcasting sta-
tion in Indianapolis, Mr. Harris is also prominent in
the civic, club and church life of the communitv.

Hamilton, Harris & Co. ranks among the largest
and most important tobacco distributing firms in the
Middle West. Covering a wide territory not only out
of Indianapolis, but from branches located in Terre
Haute, Kokomo and South Bend, the firm serves a vast
number of Indiana retailers and those in bordering
states.

In addition to Mr. Harris as chairman of the
board, the key officials of the N. A. T. D. are: Presi-
dent, Edward W. Grauer, of the Metropolitan Tobacco
Co., New York; treasurer, J. Renz Edwards, F. S. Ed-
wards Tobacco Co., Kansas City, Kansas; executive
secretary, Joseph Kolodny, Jersey City Tobacco Com-
pany, Jersey City, N. J.

HARTNETT HEADS B & W

T a meeting of the board of directors of the
Browm & Williamson Tobacco Corp. at Louis-
ville, Ky., on June 3d, the resignation of Sir
Hugo Cunliffe Owen, chairman of the board,
was accepted. George Cooper, formerly president,
was elected chairman of the board ; and T. V. Hartnett,
former executive vice-president, was elected president.
Mr. Hartnett has been actively associated with the to-
bacco industry during his entire business career. Born
and educated in Brooklyn, N. Y., he moved to St. Johns,
Ne\yfoundland in 1913, where he entered the tobacco
business with the Imperial Tobacco Companv of New-
foundland, Ltd. There he learned the fundamentals
of tobacco manufacture and marketing and advanced
steadily until, in 1919, he became manager of that
company.

In 1929, Mr. Hartnett 's sound experience earned
mm greater responsibilities when he accepted an ex-
ecutive position in the sales department of the Im-
perial Tobacco Company of Canada, Ltd.
..„ ^^^^ ^oon after, in 1930, when the company was
still m the early stages of its phenomenal growth, he
joined Brown & Williamson Tobacco Corporation at
Louisville as vice-president. Throughout his eleven
years wdth this aggressive organization, he has had
much to do with its steady development— as evidenced
by his election, in 1935, to the position of executive
vice-president.

Mr. Hartnett is well known to the tobacco trade
throughout the United States due to his policy of keep-
^^^h, 1941

LO Rl LLARD'5 POPULAR LEADERS

Something NEW

has been added!

It's the new Old Gold-cnrichcd
with a rare imported tobacco—
so now it's better than ever!
Get more pleasure from your
Old Gold now that something
new has been added.

;ic NEW— A priz*d imported tobacco, from tho
•aitcm Medilerranoan— a tobacco whose imall
aromatic leaves impart new life and zest to the
famous Old Gold blend! So rnvmry moment you spencf
w»»/i Old Gold will be even more olmasant than be/oro.

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BETUN, AROMATIZER. BOX FLAVORS. PASTE SWEETENERS

FRIES & BRC, 92 Reade Street, New York

/

CIGAR BOXES

Tel. Algonquin 4-9532

jiic^^nscQ

Established 1875

In 6 stock models— 7S? to $6.00

Newest Ciqar-Box display fixture. Makes
dealers junk obsolete racks. Virgin terri-
tory. Agents wanted.' Jobbers. Manufac-
turers, Salesmen can't miss on these.
Ask for 1941 folders today.

QUIKSALE RACK CO.

315- 8th Street Brooklyn. N. Y.

iiig- 111 personal touch out in the field with the corpora-
tion's business; and his host of friends in the industry
will welcome his elevation to top rank as a fitting trib-
ute to his ability.

Are You Getting Your Share?

Thousands of dealers are benefiting by the increased demand for

MANILA CIGARS

i&v7^^YnTm''^%^^<}'WTrr^f^. ^VPi government regulations and sanitary control.
JKtn'L^y'S'ga'rtSinrire^^^ ^'^' ''^' ""''^ ^"°'"^^ ^^"^^^'"'^'^ '^^ '^^

PHILIPPINE TOBACCO AGENCY

X36Z MASSACHUSETTS AVENUE, N. W., WASHINGTON, D. C.

A<»^«ft k i A ^^ A ^t

Story of Tobacco Wholesaling

HE story of tobacco wholesaling during the
past decade is one of pronounced growth and
expansion. Like other businesses it shows a
drop in dollar volume in the depression years
but since 1933 the general trend has been steadily up-
ward with last year the record high for the past eleven
and probably high for all time. It is well over a billion-
dollar business, not counting the tobacco sales of drug
grocery, confectionery and other classes of wholesalers'
Operating expenses per dollar of sales are the low-
est tor conventional types of wholesalers in any trade
and the 1939 record in this respect bests those of pre-
vious census years. No other wholesale trade of the
conventional type-not even cash-and-carry wholesal-
ers in the grocery business-^3an, as a group, boast an
of saks"^ expense ratio running lower than 5 per cent.

• A ^®si""in8: that increases in number of more or less
independent businesses together with larger volume of
sales at low cost characterizes our national develop-
ment wholesale tobacco distribution may be described
as a typical American business. These generalizations
are arrived at from information published by the
Bureau of the Census.

The Census Bureau, as you probably know, is a
service agency of the Federal Government engaged
prmarily in collecting, compiling and presenting dita

ZJo^. T '"" '. ^"•"*"' '"""•''"'« '^nd business re-
hZtfL P®''^°''™« n« regulatory or administrative
functions nor may your census schedules be used by

^it", ^^v"''^'' <^°7™mental or private, for such pur^
onlv ZTJ'^'''^' """5 "'?,•? ^" statistical tabulations
thlLln ^""""^ f"' ^*'""^'' ^"h the census chieflv
tlirough Its population and manufactures enumera-
^l ri^F^ / ^^^^^^ Chamber of Commerce, a Census
of Distribution-now called the Census of Business-
was added to its duties. This census covers, amon-
other fields, wholesale and retail trades

specificallvTnM*^" ^TT ",^ ^"^'"^«« a« it relates
S inJ 1? *?¥*'? wholesaling and retailing is di-

leJvke fnd S:/l° *^? P'^'"^'-" ^^^ ^"••■•^"t statistical
service, and (b) general censuses. The current service

duS bv maTS ''T''' '" *^^* *h« former's cT
auctecl by mail, is based upon a sample, and measures

trends m wholesaling and retailing montWy, whfle the

10

latter represents complete enumerations by means of
personal contacts of every wholesale establishment and
retail store in the country. General censuses cover op-
erations during an entire year.

Being cooperators in the program, many of you
know that approximately 150 tobacco wholesalers re-
.Whlv"^? fi' "'^e"tories, credits and collections
monthly. The figures for any one month are released

betg ft^fovembS.^ '""'^""'^ "^''"*^' '""^ '^^^^ --
The general trend of the sales line is upward
throughout with 1940, through October, the highe^sTfor
any comparable period of the series. November of last
nr?^7r P*''' ""?*■• '^^^^^ November, 1939. A slowing
K^* 1 ?.^''"'',™^ "s® 's noted in 1938 and earlv 1939
but the December peak of each year is above that of

Xat^S"? ^'^'\ ^""^ *^« ?^'-'^ ««^s«» low is so ne
what higher in each successive annual cycle. Inven-
tories follow the general trend in sales with a relative y
favorable condition portrayed as of November 1
. As a result of an experiment by the Census Bureau
in cooperation with the United States Cha nber of
Commerce, a general census of distribution was pro-
vided for in 1929 and each succeeding tenth ?eartliere-

tas'the r"r'°"°" "'!^ ^^' ^«°«""'^1 census's' 929
was the first enumeration of its kind covering whole-
sale and retail trades ever undertaken in thfs m so

publ^hlnV^Stat^if™!; ? ^11 '"'"'''''y- Now we'ar^
puDUsiiing, htate by State, the results of the 1939

to"l9l9'and mo f ''^ ''''■^'^'. ^-^-- I" a^dS
10 iyz9 and 1939, two enumerations have been con

and 'ms 'Tl&T ""''''''' •'^^^""^ «"ySrs 1933
ana iJd5. Altogether, we now have four points nr

" ?.? 0.^0 ';,™'"'^"""^ trends and changes. "^
of the more conv;f.^'■^f^^ wholesale establishments
salers ent2"r"*-°"^^-,*^P''~^""™°"'y called whole-
£c^nt^of^.lPhrT"^'V""^"S tobacco products.

turers ' salAr« Li '^'"''"*' "^"^^ "°t include manufac-
of a whoW. r *"' ."'^y. agents but in it each branch
r^ut^fl- organization operating two or more

STz 7'reorerenV' enumerated separately TheTota
or ^lu represents an increase of approximatelv 500
over the comparable total for 1935 n^^ „ +1 ^ a
more than in 1929. ' ^ ^ thousand

sons ^^'theTnYri" ''''• instituted to determine the rea-
1935 Pnl f). *" "' n"'"^'''' °^ distributors since

1935. For this purpose a sample of approximately 10

The Tobacco World

ftSOUM

ASLC.

r«cf

EN

NGI

•o|

I'll

l**i

Mr. Dealer:

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plam
ends Save these valuable coupons for cash or
one of the seventy luxury premiums.

Brmm i, WMiamson Tcbacc Ccrporalu,^

UMONMAH

- -« .« ..!>,. .1 c..ii:.>9n Reviews ihe
mill In i «mi uw"-— - ■ I

NewV'. . .every nightexcepi Salurday and

&. ..CBS coast to-coa,t network

HANDYBRffZI ILICTRIC PAN...
900 coupons. Ask the B & W sales-
man for a supply of the new full color
catalogs showing all the premium*

per cent, of the total was selected. It was found that
of the sample one in six— 17 per cent. — was new, that is,
established since 1935, and one in ten was classified
previously as confectionery, or groceries, or in other
trades. Tobacco wholesaling seems to have benefited
by a high rate of new businesses and by acquisition
from other trades through the specialization process.
This increase in establishments was accomplished with-
out a decrease in average dollar volume per place of
business. In fact, average annual sales per establish-
ment rose from $334,000 in 1935 to $406,000 in 1939, a
gain of 21.6 per cent.

Sales of the 2717 distributors amounted to $1,103,-
593,000 in 1939, which was an increase of 46.6 per cent,
over 1935 and 28.6 per cent, above 1929. Tobacco is
one of the few wholesale trades showing increases in
business over the high of 1929.

Employment was provided for 2336 active pro-
prietors and firm members of unincorporated busi-
nesses and 18,464 employees, or more than 20,000 per-
sons. Total personnel in 1939 was 27 per cent, above
1935. Pay roll of the 18,464 employees amounted to
$26,924,000 in 1939, slightly less than $1500 each. Total
salaries and wages in 1929 were 27 per cent, above 1935.

Tobacco wholesalers ' sales dropped relatively
more from 1929 to 1933 than production by manufac-
turers, but since 1933 sales have increased more rap-
idly. By 1937 your position relative to production was
better than in 1929, and 1939— two years later— shows
still more improvement.

This increase, as stated before, mav be due in part
to the conversion of other classes of wholesalers to the
tobacco trade. In making these comparisons it should
be remembered that wholesalers' sales include some
Mate and city taxes not in production totals; taxes
that have tended to increase during recent years. In-
ternal revenue stamp totals are included in the value of
products for manufacturers as well as in the totals for
wholesalers.

As stated before, of all wholesale trades, operating
expenses— including payroll but not compensation of
proprietors of unincorporated businesses— are lowest
for tobacco distributors. Your expenses were 4.9 per
cent, of sales— $4.90 per $100 of sales on the average-
compared with such ratios as 13.1 per cent, for druos
(general line) ; 9.5 per cent, for groceries (general
Jine) ; and 13.2 per cent, for confectionery. N'ext to
tobacco, automobile distributors of the conventional
type have the lowest expense ratio— 5 per cent, or $5 00
tor every $100 of sales.

^^h. 1941

Your low ratio apparently was accomplished in the
last few years as in 1929 expenses amounted, on the
average, to $7.40 for each $100 of sales and by 1935 it
had dropped to only $5.20. Smaller inventories and
lower payrolls per dollar of sales appear to be con-
tributing factors. Payroll per $100 of sales dropped
from $3.10 in 1929 to $2.80 in 1935, and to $2.40 in 1939.
Inventory economies are shown by the fact that in 1939
end-of-year stocks amounted to only $4.50 for each $100
of sales during the year, compared with $5.10 per $100
in 1935 and $5.50 in 1929. These facts seem to indicate
that possibly you are able to effect more direct ship-
ments from suppliers to customers without the goods
passing through your warehouses.

It should not be implied that large volume of busi-
ness means high operating profit or, conversely, that
small business means relatively low profit. Census fig-
ures give no indication of net profits. There is consid-
erable evidence here, however, to indicate from a social
point of view where low cost of distributing tobacco
products may be found.

Principal economies resulting from size are found
in lower administrative and selling costs with some re-
duction per dollar of sales in the occupancy and
** other" (chiefly financial and bad debt) expenses.
^ On the retail side of the picture the number of
cigar stores and cigar stands was substantially less in
1939 than in 1929 : 18,509 compared with 33,248. Sales
were off between the two years by 49 per cent, and only
slight increases were noted between 1935 and 1939
Total sales of the 18,509 stores in 1939 amounted to
slightly more than $200,000,000; hence it is apparent
that the major portion of your $1,100,000,000 sales
must have been to other classes of retail stores. Rea-
sons for this decline in cigar stores, which seem to pre-
sent a challenge, may be obvious to you in the whole-
sale business.

NORWALK PIPE EXPANDS

Greatly increased business, both in new accounts
and repeat orders, has forced the Norwalk Pipe Cor-
jooration manufacturers of Jobey and Shellmoor pipes,
o^o"^^^^^m ^^^^t^t-y and offices to larger quarters at
218 East Twenty-sixth St., New York City, it is an-
nounce^d by Louis Jobey, president. Plant facilities,
.1? ^^i^' ^^t-e no longer able to supplv demands, al-
though the company has been operating at capacity.
• latest equipment and a showroom of modern de-

^Tr T r^r^S*^*"''^^ ^^ ^^"^ ^^^w quarters, which will
add about 5000 square feet to the company's floor
space.

II

TRADE ASSOCIATIONS

(Continued from Page 6)

Many business men who are chargeable with great
responsibility in connection with the public welfare are
totally unaware of the causes of economic disturbances.
They operate their business in a manner that is detri-
mental to the public welfare. Many laws have been
placed upon the statute books by reason of the con-
duct of business men in the past. Some of these laws
do not meet or cure the conditions.

Business men who engage in the sale of goods be-
low cost, the giving of secret rebates and discrimina-
tion in sales of their merchandise, all for the purpose
of destroying or injuring competition, are violating
both state and national laws. The fact that laws are
made for the elimination of these trade evils is con-
crete evidence that such evils exist and should be elim-
inated.

It is not necessary to dwell here upon the fact that
many of our courts have agreed that the protection of
the economic welfare of the people is included within
the police power of the state. It is fundamental that
we must preserve the opportunities for the many
rather than for the few. It is further fundamental
that unless we do so we will be fostering one of the
primary causes of the ^4sms" which have spread
throughout the world.

Trade associations can, by the dissemination of
proper information and statistics, enable the business
man to understand some of the causes of economic
instability.

The next challenge is the necessity of establishing
a better ''Employer-Employee" relationship.

Many employers fail to teach the employee that
the problems of a trade are not alone the problems of
the employer, but are the problems of everyone con-
nected with such trade.

Workers should be taught that they represent one-
half the effort and capital the other half, working as
a unit to bring about prosperity to all, and that every
injury to industry affects everyone in it. Workers
must not only be taught but given a part in the re-
sponsibility and management in the industry in which
they are employed.

Workers must be educated in the matter of gov-
ernment efficiency and they should be taught the effects
of inefficient government upon their lives. Responsible
and intelligent labor leadership should be developed.

Both labor and capital have a vital stake in a profi-
table business economy. Constant strife between them
is damaging to both sides.

The leaders of business and labor should make a
sincere attempt to understand the aims, objects and
stake in our economic order so that we can maintain a
stable economy in which both sides share.

Trade associations, with proper and intelligent
leadership, can contribute in bringing about such sta-
bility. The safer route to achieve a stable economy is
through cooperation rather than antagonistic action.
The watchword of Americans should be: ''Outlaw
selfishness."

To carry out our studies and eventual solutions of
the problems, we should coordinate the activities of our
trade associations into a national economic council.
Into such a council can be brought the ablest men in
industry, labor and agriculture. Let us do away with
the idea that one group can secure benefits at the ex-
pense of the other.

12

These are but a few of the many challenges which
the modern trade association nmst meet in this chang-
ing world. Let us not close our eyes to that fact.

The modern trade association can and will meet
these challenges, with a unity of purpose, thought, con-
tinuity of effort and organization.

The trade association working in conjunction with
labor and agriculture will guide the forces that control
our economic life, molding and shaping them to insure
greater blessings and happiness for all. In this way
we hold the cherished hope that we will sustain our
way of living in a normal economic life — a fair wage
for the wage-earner and a fair return for capital.

Truly, then, we will have nmde a genuine and ever-
lasting contribution to the betterment of Imman rela-
tions and sustain the hope and faith of millions of men,
women and children of the world that the light of free-
dom shall not go out.

CIGAR-FILLER TOBACCO

The 1941 goal of cigar-filler tobacco, type 41, is
30,000 to 31,000 acres; that of cigar filler and binder
tobacco (other than types 41 and 45) is 60,000 to 63,-
000 acres; and that of Georgia-Florida tobacco, type
62, is 2,800 to 3,000 acres. The acreage goal for type
61 (a) was set on February 6 at 6,500 acres. Type 61
(b) is not included in the acreage goal for Connecticut
Valley shade-grown. It is grown from a special seed
and is slightly different in characteristics from 61 (a).
In recent years, from 200 to 400 acres of type 61 (b)
have been grown by a limited number of growers.

The purpose of the acreage goals is to maintain
a balance between supply and consumption. March 1
acreage intentions show Pennsylvania Seedleaf, type
41, to be 35,000 acres, whereas the goal for this type
is from 30,000 to 31,000 acres; the George-Florida
shade-grown, type 62, acreage intentions are reported
as 3,700 acres, whereas the goal for this type is from
2,800 to 3,000 acres. Acreage intentions for other cigar
types are about equal to the goals.

A large portion of the 1940 crop of cigar leaf has
been sold and preliminary indications are that price
averages will not be greatly different from those re-
ceived for the 1939 crop. A possible exception to this
is the Connecticut Valley broadleaf, type 51, and Con-
necticut Valley Havana seed, type 52; for these types
prices received for the 1940 crop are a little below
those received in 1939. A part of the 1940 Connecticut
Valley binder types was damaged by frost and hail.

CONDITIONS IN BAHIA

The consumption of tobacco in Baliia amounts to
approximately 8 to 10 million pounds annually, or
about one-sixth of the average crop. The best estimate
places the annual output of cigarettes in the State at
800 million, and cigars at 143 million (including 20 mil-
lion home-made cigars produced in the interior free of
tax). The production of pipe tobacco is insignificant,
but the annual output of chewing tobacco is reported to
be about 6.2 million pounds. These products are made
almost entirely from domestic material. No nicotine,
tobacco extract, or snuff is manufactured. The imports
of leaf tobacco amount to little more than 100,000
pounds annually imported principally from The Neth-
erlands.

Prior to tlie European war, Bahia had a flourish-
ing export trade in leaf tobacco ; about three-fourths of

The Tobacco World

MODEL TOBACCO Presents

one of radio's outstanding hits

"THE GAY NINETIES"

You And Ail Your Customers Will Like It
Coast to Coast Every Monday Night

''■I'tnSia Broadcasting System

the total exports were sold in Europe and most of the
remainder to other South American countries. Total
leaf exports in 1940 were reduced to 30.8 million
pounds, compared with 66.1 million in 1939.

REYNOLDS RENEWS CUGAT

The R. J. Reynolds Tobacco Company, Winston-
Salem, N. C, has renewed the Camel cigarette broad-
casts of Xavier Cugat, heard over 75 stations of the
red network of the National Broadcasting Company on
Thursday evenings from 7:30 to 8 P. M., for another
fifty-two weeks, commencing with the expiration of the
present contract on July 10, 1941.

The program will be known as ** Cugat — Rumba
Revue.'' In addition to the domestic red network sta-
tions the program is shortwaved to Central and South
America over the NBC international transmitters
WRCA and WNBI. There are also delayed broad-
casts in Honolulu, Cebu and Manilla, P. I. Carmen
Castillo, who is Mrs. Cugat, and Lina Romay, have re-
placed Yvette as vocalists on the program. Miguelito
Valdes, the '* Cuban Bing Crosby,'' remains with the
program.

Bert Parks is master of ceremonies on the pro-
gram and Jack Meakin is the producer. William Esty
& Company, Inc., 100 East Forty-second St., New York,
is the agency.

SMOKING LESS IN FINLAND

Owing to higher tax rates imposed in 1940, the
revenue accruing from tobacco in Finland increased
for that year as compared with 1939, according to in-
formation received in the Office of Foreign Agricul-
tural Relations. On the other hand, the actual con-
sumption of tobacco products decreased considerably.
Consumption of cigarettes decreased from 4.1 billion
to 3.8 billion, and corresponding decreases occurred in
all other tobacco products except pipe tobacco, which
mcreased only slightly. It is predicted that the decline
will continue for some time because of the decrease in
the purchasing power of the people brought about by
taxation and the floating of Government loans, as well
as by the higher cost of living.

A change in taste of the consuming public has
affected adversely the demand for Russian-type
(mouthpiece) cigarettes. During 1940 consumers be-
gan to prefer American-type cigarettes to others, but
owing to the fact that there are not enough machines
in Finnish factories to supply this demand, there is an
increasing scarcity of American-type cigarettes.

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter
It's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 67 years
15 Washington St. Newark, N. J.

EstablitlMd 1886

"BEST OF THE BEST"

* i'

Manufactured

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West, Horlda

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, III.
Detroit. Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling. W. Va.

13

i

Tobacco Merchants' Association
Registration Bureau, JtV wkTa^-

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. «:«»"crs oi me looacco Mer-

thai^?in ?mf^^HI!**°K^°? * M^'""^ °* * *•*'* necessitates the reporting of more
tnan ten (10) titles, but less than twentv-one ^21). an arlH.*J^«oi ^k,.*- ^fi"l.

?^{'Hf}!'""i! !"i" ^"^ raade. If it necessitates the reportTng 'of"mor;Than twenty
JSV/*"i'i k"* '*!.* ^***i* thirty-one (31), an additional charge of Two Doflars
($2 00) will be made and so an additional charge of One Dollar (11 00? will h^
made for every ten (10) additional titles necessadly reported ' ^^

CANCELLED REGISTRATION

^^f^^7^h7^7^^''^n ^^J^'v^:?: Kr ^^^^"- Registered April
ifky 26,' 1941 " R°^J'"^^Je, Mass. Registration cancelled

TRANSFERRED REGISTRATIONS

^^w^^^'""^^^*^*^'"^'^ in Tobacco, and 22,389 in Tobacco World
^or cigars, cigarettes, cheroots, chewing and smoking tobacco
Registered May 27, 1911, and May 29, 1911, respeXeTy^ by S R
^y FreJ^E ^Dr.t^TT' n"n 'through mesne transfers acquired

A 1 Cn\^n n^w ^ ^"il^^^^^^^^^"' ^^^ ^"^ re-transferred to
A. J. (jolden, Baltimore, Md., on May 26 1941

"l^nVr^H^mffJ A<'"°'^='"° r'^l^f'v ^°^ '^'««"- Registered
January ly 1901 by American Litho. Co., Chicago 111 Tran«i

ferred by Consolidated Litho. Corp., Brooklyn NY (who had

tf HavXmpa alaV Co ' T ^^P^^--^ ^^^h^ irrginJl r^stran't)
lo navatampa Cigar Co., Tampa, Ha., on June 3 1941

April and 10-Month Figures of Tax-Paid Products From

Puerto Rico

the April figures werr ft avaHable a, t^^^^^^ Puerto Rico since

have since been received. °a'nd ™'l^ herewith pres'n^ed:"""'^^''' "^^^

Cigars/'"'"" ^P"'-'-^' f"c1?y'?^"J5|i

ciTsl B ;;; ' «'Ooo 712,410

Class C .... : Ji^ 223,750

Class D . "•^^'' 429,000

Class E ....'.".'.'.'.■.'.■.■.■.■.■.■; 2,400

Total All Classes "^ii^ ^;i^

Cigarettes 'zcc nnn '

Large Cigarettes . ! [ [ \ \ ] \ [ [ [ [ ^^fo^ '' Ji;«^^

Cigars Source of Revenue ,^, ^^^ ^^^

Cigarettes .....';;:;;;;;;;; ^ J'nd9'??n?n $ ^.160,155.17

SnuflF 58,042,570.79 48,825 814 77

Tobacco, chewing and 'smoking ". .* " * * 4 tulajH . §24;00i:67

Cigarette papers and tubes . . 'Aj'uI^a ^.764,579.35

Leaf dealer penalties .... o'JlS?! 124,450.85

2,547.47 369 74

*Manufactured Tobacco ProducpH u„ ni

(As reported by the Bureau of Internal R.vp^''^ .
on manufacturers' returns orpToductTonf '''^'
Month of March

Product iQ^, 5?crease or Decrease

PluR 4n/^%.9c Quantity Per Cent.

Twist '2r7'Am + 259,521 6 82

Fine-cut Chewing i! ] ^89^0 + ^^'^57 3 08

Scrap Chewing .*:....; ; .' ; ' 3 Hlj^^. + 54,290 16 20

'"^•^'"^ _^^ t snfe'y lit

,, "^^''^ ^^'^^^'^2 -, ^i^ -^

TOBACCO TRADE ORGANIZATIONS

^?U^'^

TUHACCO MERCHANTS ASSOCIATION
OF UNITED STAIES

<<^>

-Jf resident
rman Executive Committee

Vice-President
dent
dent
dent

JESSE A. BLOCH, WheeJma. W. Va

WILLIAM ULST, New Vork NY ViVi"

CiEOK(JE W. IIILL, New York N Y

CJEOKCE H. HUMMEL. New Vork. N 'V ^^^''E'"'

S CLAY WILLIAMS. Winston-Sal4m^'N C X?"^'^"'

JUHUS HCHTENSTEIN. New York n' Y Vice-Presi

ASA LEMLEIN, New York NY Vice-Presi

CHARLES DUSHKIND New Ynrir'M**v /•* r'"V\'/ Treasurer

Headquarters! 34r&adi-son- AVeV.' ifew "ork"'cify'"""'"* ''"''''^

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC. ^'^'^^'-^^

HENRY J. PINNEY. Worcester Mass

EDMUND C. DEARSTYNE. Albany N "y ;;:--P'^"id

ent
ent

JOSEPH KOLODNY7265"Firth Tvc., nVw YoricV n. ■Y:'::'.v.::v.::::'.::::sec*'"'^''

NATIONAL BOARD OF TOBACCO SALESMEN'S

retary

J. J. OLLENDORFF. 780 West En;/ Xll nLItJ' C"^"</'-'t"^^ Vice-President
ALBERT FREEMAN. 25 wVs\ B^rldXly.'NTw York.^^ \ -Executive Secretary

RETAIL TOBACCO DEALERS OF AMERICA* INc"""

J^OHN^^MAU^i'^:.''' ^^°"'""^' ^''^ ^-'^' N. Y .'....President

CLIFFORD M. DAWSON Vice-President

MALCOLM L. FLEISCHER*'."'.* .'.'.■.*.*; Treasurer

CIGAR MANUFACTURERS ' ASs'ociation ' OF ' AMERicZ
iXMU, 200 tifth Ave., New York NY

ALVARO M. GARCIA » • •

THOMAS C. BREEN President

SAMUEL BLUMBERG ...". i,- Treasurer

THE YORK COUNTV^CIGAR^MANUFACTURERS

CHARLES STUMP. Red Lion Pa

T. £ BROOKS. Red Lion. Pa ......President

ARTHUR S. ZIEGLER^ Red Lion* *Pa Vice-President

RUSSELL S. STINE. lied Lion° Pa. .*.*.*.'.'.'.V.".'.'.';.'.'.'. Treasurer

FLORIDA CIGAR MANUFACTURERS ASSOCIATIoT"'
l^^^ ^' PEREZ, Tampa. Fla '-"-i/MlUIN

ARMANDO RODRIGUEZ Tam'oa" "Fla President

JOHN LEVY. Tampa. Fla ^ ' Vice-President

FRANCIS M, SACfe. Tam'pa',' Fla.* *.V.*.*.*.'.'.*.'.'.*;.V.V.V;.V.V.' '. Sec?'"'"

INDEPENDENT RETAIL TOBACCONISTS' "'**'''

ASSOCIATION

BERNARD SCHWARZ

ERIC CALAMIA .. . ..V.' I,-. President

BENT. FRIEDMAN „ J^'"* Vice-President

JOSEPH GROSSMAN .. Second Vice-President

ARTHUR W. TONES Third Vice-President

LOUIS GROSSMAN Financial Secretary

BERNARD BERNSTEIN". *« 'B^o^dwa;.' 'n^W * -Yo^k.' 'n.' 'y*. * *. *. S^JeU?/

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA INC

JOSEPH FRIEDMAN ^^vir^i^it^A, liNC.

JACK EDELSTEIN ...:; President

LEO RIEDERS, 3800 Broadwa'y ' New YoVk" ' N ' V Treasurer

' °^'^' "' * Secretary

Three Months Ending March 31

Plug

Product

1941

Twist 11.695.210

Fine-cut' Chewing * .' .' .* .*.■;*■* ' 1 'm'^yl

Scrap Chewing :.';; ^1%1%I

^"^^^'^S 47928538

Total

Increase or

' Decrease

Quantity

Per Cent

+ 369,832

3.27

+ 51,514

3.86

+ 205,617

21.30

+ 17,297

0.17

+ 840,825

1.79

72,549,084 + 1,485,085 2.09

l^e'^lr'"'^"'-^"^^

, — ^ — >- revision

the Commissioner of Internal

AMERICAN PORTABLE HUMIDIFIER

Only the American Portable Air Purifier Cornora
tion makes American portable humidifierT aecoE 5
to Raymond Cadmus, president S trc'ornomS

for the statempnrfv^if ;.• ^ ^^r ^'^^'■^ ^'■e no grounds

added^known b^oS ^"'"'difirrs?' MTcadmus
no other firrnr^ Z "t^^Y""^^ ^"'^ manufactured by
of satisfacto?;lrv^^*''^-''y "*»■« ^^^^n twenty years
°o CaWornia ^.'''''^'^'' '" '''^'''' '*°*'^ ^^'"^ from Maine

/

AUGUST
1941

^/c

■%

•V

m

ESTABLISHE"D
1881

TOBACCO'S APPEAL SHOWN
IN BIG REVENUE FIGURES

Revenue stamps for 195,605,023,324 ci-
i^ars and cigarettes, large and small, and
for 343,415,401 pounds of snuff, chewing
and smoking tobacco —

That record-breaking volume of sales
reflects the appeal of tobacco for the
American people during the twelve
months ended June 30, 1941.

Turn to Page 5 of this issue for the fig-
ures.

The Tobacco World

Help yourself to a Chesterfield

anJ enjoy this Cooler, Milder, Better-Tasting
Cigarette . . . with its right combination of the
world's best cigarette tobaccos.

So it's easy to see why these friendly
white packages are around wherever folks are
having a good time.

Everywhere you go...
It's have a Chesterfield

Copyright J941. Liccrnr & Mvers Tobacco Co

IIoBAirr B. IIankins — Eaiiut

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

AUGUST, 1941

No. 8

N THE sale of the portion of the 1940 crop of
Sumatra-wrapper tobacco lield at the Free
Port of New York early in July, prices for the
leaf were considerably higher than those ob-

unsold supplies that are normally marketed in Europe
are expected to cause the estate producing* companies
to continue a policy of restricted production, accord-
ing to J. Barnard Gibbs, tobacco specialist, who pre-
pared this report. This is the first year that Sumatra
leaf has been sold in the P^ree Port, and the satisfactory
outcome of the sales is expected to result in the Ainei-
ican grades of future crops being sold there.

EAF included in this year's sales were sup-
plied by five Sumatra estate companies, and
over 50 per cent, of it came from the principal
producing company, N. V. Deli Maatschappy.
Four large American cigar manufacturing companies,
six leaf dealer organizations, and the Swedish Tobacco
Monopoly participated in the purchases. The leaf,
upon shipment by the Sumatra estate companies, was
sold to the Netherlands Indies Produce Corporation,
an American incorporated company, which offered it
for sale through brokers in New York who in previous
years have operated in the Netherlands.

ARLY this year the brokers at considerable
expense erected an air-conditioned and humid-
ity-controlled building in the Free Port of
New^ York for the use of buyers in inspecting
the leaf and in which the sales were held. The pro-
cedure of sampling, inspection and sales by means of
sealed bids were practically identical witli i)ractices
that have been followx'd in Amsterdam and Rotterdam,
the usual markets for the entire Sumatra wrapi)er-leaf
production. American buyers, estate companies and
brokers have been wxll satisfied with the success of
the season's sales, and it is anticipated that the por-
tion of the Sumatra crop suitable for the American
market will continue to be sold in the Free Port even
though conditions in Europe might later permit sales
in the Netherlands.

TOTAL of 22,108 bales, or approximately 3.9
million pounds of the better-grade leaf from
the 1940 Sumatra crop was sold at the six
inscriptions at an average price of $2.09 per
pound. Prices obtained for individual lots, which aver-
aged 219 bales, or about 36,000 pounds per lot, ranged
from $0.56 to $3.89 per pound and were 20 per cent,
or more above prices for similar leaf from the 1939
crop. Exact price comparisons are not possible due
to variations in the quality of the leaf from the two
crops and the fact tliat the comparable portion of the
1939 crop was sold in Sumatra and jn-ices did not in-

clude shipping and other costs required for delivery
at New York. Furthermore, a large part of the Amer-
ican purchases from the 1939 crop were made at
private sales, for which prices were not announced.

▲
F THE 3.9 niilhon pounds sold in this season's
inscriptions, approximately 2 million pounds
were purchased by four large domestic cigar
manufacturing companies. About 1.8 million
pounds were purchased by dealers, who in addition
have bouglit approximately 100,000 pounds of broken
leaves in private sales. Approximately 150,000 pounds
were bought at the inscriptions by the Swedish To-
bacco Monopoly. Most of the leaf bought by domestic
manufacturers w^as of the higher grades and prices
for their purchases averaged $2.51 per pound. Dealer
organizations purchased substantial quantities of the
better grades for resale to smaller domestic cigar
manufacturers, and most of the leaf that was consid-
ered unusable in the manufacture of American cigars.
Prices for their purchases at the inscriptions averaged
$1.59 per pound, and those for the three lots purchased
by the Swedish Tobacco Monopoly averaged $2.77 per
pound.

||F THE 1.9 million pounds, total purchases by
dealer organizations, it is estnnated that ap-
proximately 1.3 million pounds will be ex-
ported, principally to Canada and other West-
ern Hemisphere countries, and 600,000 pounds retained
to supply medium and small domestic cigar manufac-
turers. The latter quantity when added to purchases
by the larger domestic manufacturers indicates a total
supply for the United States of about 2.6 million
pounds. This is well above consumption requirements
in the United States as indicated by the average im-
port of Sumatra tobacco of approximately 2 million
pounds during the five years 1936-1940. It should be
pointed out, however, that unsettled conditions abroad,
the reduction of 1941 acreage in Sumatra, and the pos-
sibility of shipping difficulties that might prevent the
obtaining of adequate supplies of Sumatra leaf in
future years caused buyers for the American market
to purchase all leaf in the recent sales that would be
suitable for use in this country. In so doing they
dipped into supplies of leaf that would normally go
to other countries. If leaf from future Sumatra crops
suitable for the American market can be brought to
the United States in sufficient volume to meet normal
requirements, it can be expected that part of the ex-
cess obtained in this year's purchases will be moved
to other markets. It is anticipated tliat practically
all the leaf sold in the recent sales will be held in
storage in the Free Trade Zone, and the portion used
in the United States imported as needed in current
manufacture. Supplies remaining in the Free Trade
Zone w411 be convenient for shipment to any available
market.

The TOBACCO WORLD (est. 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; B. S. Phillips, Vice-President- John Cleary
^ ecretary. Office. 236 Chestnut Street. Philadelphia. Pa. Issued monthly Subscriptions, available only to those engaged in the tobacco industry or trade' $100 a year'
cents a copy; foreign. $1.75 a year. Entered as second-class mail matter. December 22, 1909. at the Post Office. Philadelphia, Pa., under the Act of March 3 1879 '

Increases Marked June Stamp Sales

Cigars, Cigarettes, Little Cigars and
Snuff Show Gains; But Large Cigar-
ettes, Chewing and Smoking Lose

NCREASES ill cigars, cigarettes, little cigars
and snuff; decreases in large cigarettes, chew-
ing and smoking tobacco — that summary of
the sales of revenue stamps for June reflects
the status of the tobacco business in that 1941 month
as compared to the month of June, 1940. The figures
are from the Supplement to the Tobacco Barometer
of the Tobacco Merchants Association of the United
States.

For cigars of all classes in the U. S. the total was
478,802,003, as compared to 435,029,473, a gain of
43,772,530, or 10.06 per cent. The Philippine Islands
total was 18,962,950, as compared to 17,748,615, a rise
of 1,214,335, or 6.84 per cent. The Puerto Rico total
was 30,500, as compared to 208,900, a drop of 178,400.
Grand total was 497,795,453, as compared to 452,986,-
988, a net gain of 44,808,465, or 9.89 per cent.

For Class A cigars in the U. S. the total was 431,-
470,680, as compared to 390,869,785, an advance of
40,600,895, or 10.39 per cent. The net result of a P. I.
increase of 1,153,240 and a P. R. decrease of 102,950
was to raise the quantity gain to 41,651,185 and to
reduce the percentage gain to 10.19.

For Class B cigars in the U. S. the total was
4,038,760, as compared to 3,881,693, an increase of

Product June, 1941

Cigars :

Class A —

United States 431,470,680 +

Philippine Islands ... 18,887,555 -|-

Puerto Rico 16,300 —

Total 450,374,535 +

Class B —

United States 4,038,760 +

Philippine Islands . . . 49,300 +

Puerto Rico 6,050 —

Total 4,094,110 +

Class C —

United States 39,836,815 +

Philippine Islands ... 21,575 -|-

Puerto Rico 8,150 —

Total 39,866,540 -|-

Class D —

United States 3,208,295 -f-

Philippine Islands . . . 1,500 —

Puerto Rico

Total 3,209,795 +

Class E —

United States 247,453 —

Philippine Islands . . , 3,020 -|-

Puerto Rico

Total 250,473 —

4

Increase or Decrease
Quantity Per Cent.

40,600,895

1,153,240

102,950

10.39
6.50

41,651,185

10.19

157,067
45,500
15,000

4.05

• ■ • •

• • • •

187,567

4.80

•

2,588,573
17,075
60,450

6.95

• • • •

• • • •

2,545,198

6.82

454,205
1,800

16.49

• • • ■

• • • •

452,405

16.41

28,210
320

* * *

10.23

• • • •

• • ■ •

27,890

10.02

157,067, or 4.05 per cent. A ir. I. gain of 45,500 and a
P. R. loss of 15,000 served to lift the class gain to

±0<,tJUI ill qiialllil}' ctllu LU •±.0 pCl cCm. m Kite.

For Class C cigars in the U. S. the total was
39,836,815, as compared to 37,248,242, an increase of
2,588,573, or 6.95 per cent., which was reduced to
2,545,198 and 6.82 per cent, as a result of a P. I. gain
of 17,075 and a P. R. loss of 60,450.

For Class D cigars in the U. S. the total was
3,208,295, as compared to 2,754,090, an increase of
454,205, or 16.49 per cent. This was lowered to 452,405
and 16.41 per cent, by a P. I. drop of 1800.

For Class E cigars in the U. S. the only loss in the
sales of cigar stamps was recorded. The total was
247,453, as compared to 275,663, a decline of 28,210, or
10.23 per cent. Through a P. I. gain of 320, the loss
for the class w^as brought down to 27,890, or 10.02 per
cent.

For little cigars, the total, all U. S., was 10,736,-
440, as compared to 7,363,907, an increase of 3,372,533,
or 45.8 per cent.

For cigarettes the total was 18,498,764,920, as
compared to 17,565,041,013, a rise of 933,723,907, or
5.32 per cent.

Following are the comparative figures:

Product June, 1941

Total All Classes:

United States 478,802,003 +

Philippine Islands ... 18,962,950 +

Puerto Rico 30,500 —

Grand Total 497,795,453 +

Little Cigars:

All United States .... 10,736,440 +

Cigarettes:

United States 18,498,764,920 +

Philippine Islands . . . 32,350 -f-

Puerto Rico 329,000 —

Total 18,499,126,270 +

Large Cigarettes:

United States 113,325 —

Philippine Islands . . . 6,400 +

Puerto Rico 5,000 —

Total 124,725 —

Snuff (lbs.):

All United States 2,930,255 +

Tobacco (chewing and
smoking) (lbs.):

United States 24,729,260 —

Philippine Islands ...

Total 24,729,260 —

Increase or Decrease
Quantity Per Cent.

43,772,530

1,214,335

178,400

10.06
6.84

44,808,465

9.89

3,372,533

45.80

933,723,907

19,200

436,840

5.32

• • • •

• ■ • •

933,306,267

5.31

60,925

6,400

10,000

34.96

• • • •

• • « •

64,525

34.10

33,718

1.16

34,074

0.14

34,074 0.14

The Tobacco World

Were

Tobacco Products of all the Major
Classifications, Except Only Large
Cigarettes, Show Sales Increases

LL major classifications of tobacco products
except large cigarettes registered increases in
tlie fiscal year ended June 30, 1941, as com-
pared to the fiscal year ended June 30, 1940,
according to the report of the twelve months' sales
of revenue stamps, publislied in the current issue of
the Tobacco Barometer of the Tobacco Merchants As-
sociation of the United States.

P'or cigars of all classes in the U. S. the total was
5,527,821,292, as compared to 5,293,619,374, an increase
of 234,201,918, or 4.42 per cent. The Philippine
Islands total was 179,176,498, as compared to 219,243,-
374, a loss of 40,066,776, or 18.28 per cent. The Puerto
Rico total was 1,428,035, as compared to 1,728,200, a
drop of 300,165, or 17.37 per cent. Grand total was
5,708,425,825, as compared to 5,514,590,848, a gain of
193,834,977, or 3.51 per cent.

For Class A cigars in the U. S. the total was
4,928,506,245, as compared to 4,724,906,955, an increase
of 203,599,290, or 4.31 per cent. P. I. and P. R. losses
of 40,202,570 and 244,065, respectively, reduced these
figures to 163,152,655 and 3.30 per cent.

For Class B cigars in the U. S. the total was
42,759,440, as compared to 42,170,867, a rise of 588,573,
or 1.4 per cent. A P. I. gain of 96,445 and a P. R. loss

Fiscal Year Ending Increase or

Product June 30, 1941 Quantity

Cigars :
Class A —

United States 4,928,506,245 + 203,599,290

Pliihppme Islands ... 178,214.590 — 40,202 570

Puerto Rico 742,335 — 244,065

Total 5,107,463,170 + 163,152,655

Class B— ~~

United States 42,759,440 + 588,573

Philippine Islands ... 211,706 + 96 445

Puerto Rico 233,500 — 23,'350

Total 43,204,646 + 661,668

Class C —

United States . 513,349,973 + 27,082,183

Philippine Islands ... 394,322 + 72 856

Puerto Rico 449,800 — 32,950

Total 514,194,095 + 27,122,089

Class D—

United States . 38,920,510 -f 3,090,318

Philippine Islands ... 72,475 — 181221

Puerto Rico 2,400 + '2OO

Total 38,995,385 + 2,909,297

Class E— '

United States . 4,285,124 - 158,446

Hiihppine Islands ... 283,405 -f 147 714

1 uerto Rico '

'Total ■; 4,568,529 — 10^

August, 1941

Decrease
Per Cent.

431
18.41

3.30

1.40

1.56

5.57

5.57

8.62

8.06

3.57

0.23

of 23,350 coni])ined to heig-liten the increase to 661,668
or 1.56 per cent. '

r-ioo^'j^'^rro'^^^ ^ cigars in the U. S. the total was
oJ .loo ^oo^' ^^ compared to 486,267,790, an advance of
^/^,U82,183, or 5.57 per cent. A P. I. gain of 72,856
and a P. R. loss of 32,950 brought the class increase
up to 661,668.

oonon^.'^P^^^ ^ ^'^^''^ "^ *^^^ U- iS- the total was
38 920,510, as compared to 35,830,192, a gain of 3,090,-
318 or 8.62 per cent. By a P. I. loss of 181,221 and a

o n.S-onl''''''''o''.''^ ^^^^^ *^^^ ^^^^^ S'^i" was reduced to
2,909,297, or 8.06 per cent.

A ooF-^L ^^^^^ ^ ^^^^''"^ ^^ t^^^ U. S. the total was
4,285,124, as compared to 4,443,570, a drop of 158,446
or 3.57 per cent. This class loss was almost wiped
out, iiowever, by an increase of the P. R. figures by
more than double, showing a gain of 147,714 over a
total of 135,691. The class loss was 10,732, or 0 23
per cent.

i7-r^i?rJ?noo ^""^''^^"^ 189,743,106,483, as compared to
17^679,553,983, an increase of 12,063,552,500, or 6 79
per cent.

Little cigars were up 16.55 per cent.; snuff 1.49
per cent.; chewing and smoking 1 per cent. Large
cigarettes were down 33.77 per cent. The figures fol-
low :

Fiscal Year Ending Increase or Decrease

Product June 30, 1941 Quantity Per Cent.

Total All Classes:

United States . 5,527,821,292 + 234,201,918 4 42

Ihihppnic Islands .. . 179,176,498 - 40,066 776 18.28

Puerto Rico 1.428,035 - '300;i65 17.37

Grand Total 5,708,425,825 + 193,834,977 "~IsT

Little Cigars;

All United States ... 151,805,785 + 21,558,068 16.55

Cigarettes:

United States 189,743,106,483 + 12,063.552,500 6 79

Philippine Islands ... 297,292 — 488 198

Puerto Rico 3,441,415 — 677,'365

'^^t^l -189.746,845,190 + 12,062,386,937 ~~679

Large Cigarettes:

f/,'Vt^^. States 1,545,266 — 787 944 33 77

Ihihppnie Islands .. . 7 180 + 40OS

^"^'•t^ R»^° 132,785 _ 89,015 46:i3

^""^^^ 1/^85,231 - 872,954 lU^

SnuflF (lbs.):

All United States . .. 38,331,151 + 561,393 I.49

Tobacco (chewing and
smoking) (lbs.):

United States . 305,084,238 + 3 012 038 inn

Phihppme Islands ... 12 ■— ^'^^^>^'^o i.oo

'^^^^^ ~ 305,084,250 + 3,011.996 ~I^

5

1^

'

:IM

Progress in Fair Trade in Ohio

By Ekic Gala MIA
President, Retail Tobacco

AST January, in Cliicago, we liad the oppor-
tunity to speak to a group of Ohio retailers
and jobbers. This was at a time when the
intermediate appellate court in Ohio in the case
of Rayess v. Lane Drug Co. had upset the retailer-
jobber fair trade contracts on cigarettes. The Supreme
Court of Ohio recently sustained this finding and such
fair trade contracts now are invalid in Ohio. We sug-
gested to the Oliiu dciilers bcick in Jiinadiy that they
take under consideration the advisability of going to
the Ohio State Legislature and urging the adoption of
an unfair sales act which would prohibit sales below
cost made with intent to injure competitors. We out-
lined the various patterns of unfair sales acts on the
statute books in other States and set forth the weak-
nesses and strong points of the different types. We
also made available a model bill which we earnestly
believed would provide real benefits for the tobacco
industry in Ohio.

The outstanding feature of the bill we suggested
was the flexible definition of retail cost in contrast to
the type of bill which provides a rigid retail mark-up
of only 6 per cent. I am naturally highly pleased to
say that the Ohio Fair Trade Conmiittee adopted in
toto the bill we recommended with only one major
change. Whereas, the measure we drafted was de-
signed to be a general industry one, the Fair Trade
Committee narrowed its application to only cigarettes,
for reasons best known to it. I venture to say that the
application of this form of fair trade legislation to a
single commodity will in no wise affect its constitution-
ality.

The law seems well established that State legisla-
tive bodies have the clear right to prevent harmful
competition even if it includes the regulation of price,
provided, of course, that there is a reasonable relation
to the legislative purpose. We know that the reason-
able relation exists in this situation, for unless the to-
bacco retailers and jobbers can eliminate the ''loss-
leadering'' of cigarettes, we are destined for economic
starvation.

All Ohio tobacco retailers must realize the stupen-
dous task undertaken by their Fair Trade Conmiittee
in urging the adoption of the Unfair Cigarette Sales
Act. Too great praise cannot be bestowed on these
leaders for the manner in which they set about to ac-
compHsh the passage of this act. They were well
rewarded when on May 28th Governor Bricker ap-
proved this measure, which is to become effective
August 27th.

There now rests on the shoulders of each retailer
the obligation to see that this law is properly adminis-
tered and lived up to by all who sell cigarettes in the
State of Ohio.

Since January, there have been some very interest-
ing and, in some respects, startling happenings in the
field of unfair sales acts. The most important of them
IS the criticism levied against the administration of
these acts by Thurman Arnold, Assistant United States
Attorney in charge of the Anti-Trust Division. Mr.
Arnold has come forward urging the repeal of the
Tydings-Miller Act, the Federal fair trade enabling
law. ^

During the past few months Mr. Arnold has sent
6

Dealers of America, Inc.

down a number of indictments involving the construc-
tion and administration of State unfair sales acts. The
indictment against the Colorado grocers ended in a
plea of nolo contendere and a fine of $49,500; tlie in-
dictments against the VV'ashington tobacco dealers, the
Connecticut grocers and others still remain undeter-
mined.

In all these cases Mr. Arnold alleged abuses of the

nuToii" uolnt! o/ifu «inrf t'oy" '^'i'"' /»oii>j i »i i'«i/»i/»o f li/iivi+'i'rim

Though the Colorado grocers did not contest, and the
other indictments remain undetermined, there are some
very important lessons to be gleaned from these indict-
ments, for those who will undertake to enforce the
Unfair Cigarette Sales Act in Ohio.

As for enforcement of the wholesaler's cost under
the Ohio act, there won't be any difficulty. It is a
straight 2 per cent, mark-up with the cash discount
excluded. There may be some technical points to iron
out for the jobbers but that is a matter for the legal
authorities.

However, in determining the retailer's cost, we are
faced with a different problem. The act defines re-
tailer's cost as invoice less bona fide trade discounts,
except cash discounts to which the entire cost of doing
business is to be added, and sets forth a presumption
that that cost of doing business shall be 6 per cent,
unless a lesser or higher cost is shown. We all know
that no retailer of cigarettes can show a lower cost of
doing business than G per cent. It is with respect to
the *'or higher" part of the definition that you ought
to be concerned.

The act when read in its entirety says that the
niost efficient cost of dohig business shall prevail and
it sets forth guides in determining this. One of these is
the necessity of *'cost survey," and my advice in this
connection is a *'cost survey" conducted by an impar-
tial agency. There are many fine points that require
consideration, and Malcolm L. Fleischer, executive sec-
retary of our national association, who is an attorney
and has spent a great deal of time in studying the eff'ec-
tiveness of these laws and who assisted in drafting our
model law will have certain suggestions to offer to your
officers and will make available material that should
prove helpful. I would like to stress at this thne the
importance that your next step be the correct one and
that you don't run afoul of the law. You will be inter-
ested to know that Corwiii D. Edwards, chief economist
in Mr. Arnold's division, speaking in Chicago a few
weeks ago, extended the services of his department for
the purpose of reviewing any proposed plan of admin-
istration under the State unfair sales laws.

It is up to the retailers themselves as a separate
division and apart from the jobbers to undertake a
plan of enforcement that will secure the full measure
of relief from cut-price competition and the protection
that your State Legislature intended to afford you,
when it passed the Ohio Unfair Cigarette Sales Act.
Such a plan can be developed under careful legal guid-
ance, and will produce benefits for tlie tobacco retailers
comparable to those established for the tobacco
jobbers.

^ There is another very important trend taking place
right now which may affect the tobacco retailers all
over the country. Those of you who attended our

The Tobacco World

Cigars arc the
mort pleasurable
gnd economical
form of smoking.

BAYUK BULLETIN

Devoted to the
best interesta
of the men who
sell cigars*

fint Issued 1929

AUGUST, i*^U

Prepared twice a month

PHULOFAX

(The Retailer^s Friend)

SAYS

He spent 75% of his
time talking about the
demerits of a competi-
tive product and 25%
of his time talking
about the merits of his

own product. No, he didn't get an

order.

— o —

In the early days, it was con-
adered "socially correct" to smoke
cigars— and Phil says this is equally
true today.

Don't ever '^kid" about the cor-
rect name of your product and never
be guilty of not spelling and pro-
nouncing it properly.
— o —

The original use of tobacco was
for medicinal purposes and Phil
wants to remark that tobacco in
cigar form is sure an eliminator of
cobwebs in the mind.
— o —

Monday, September the first, is
Labor Day and "Cigars by the Box"
can be given another impetus.

— o —

Napoleon said something along
the line that if you did not answer
letters until three or four weeks after
their receipt, you'd find that you
wouldn't have to answer 50% of
them— great idea, but look what
happened to Napoleon !

Did you get a new member for
theCBL last week? Whether *'yes"
or "no", how about one or more
week?

The Old Timer
Talks:

by Frank Trufax

Tlie Fruuk Trufax letters puo-
ILshed in book form some years
ago, attracted so many requests
for copies that two editions were
exhausted. In view of the con-
tinued demand, the editors have
decided to republish the letters
in the Bayuk Bulletin.

Were cigars introduced in 1770 or
1771? History is a little in doubt as
to the exact year but what matters?
Let's all be thankful cigars WERE
introduced! !

. A good sign in a cigar store: "Go-
nig away? I'll guarantee dehvery of
*. box of your favorite brand of
''igars when and where you say."

When you go after an order, do
you HOPE to get it of do you EX-
[i'CT to get it? If you're doing the
Conner, try the latter.

C^^

,^ D. B. I.

rfjj^ jrirt BAYUK CIGARS INC.. Phita-
—i"»« — Makera of fine cigan since 1897.

To My Salesmen:

"IF collections were a little better,
I'd do better IF I had a little more
territory to work and IF I had a
gratis deal on my products and IF
they were packed a little differently,
IF I had more newspaper and radio
advertising and IF it were the kind
I know will pull and IF the dealers
displayed my products and IF I had
a new car to get around faster and
could do it IF they'd fix up the roads
so there would be no detours and IF
we had some nice weather!"

That fellow has got IFFER-E-
TIS — the most dastardly derange-
ment that can sink its sting into
the system of a salesman ! !

IFFER-E-TIS is easy to catch
and easy to cure but, strange to say,
no one can truly give you IFFER-
E-TIS and no one can really cure
IFFER-E-TIS— you catch it and
cure it all by your lonesome.

IFFER-E-TIS was first made
known to the Medical Profession by
the experience of the original manu-
facturer of doughnuts. It seems that
the Big Boss of a cake concern de-
cided to doll up dough in the form
of what we now know as a "dough-
nut." He gave a sample to one of
his salesmen — the salesman tasted
it, and liked it. Asked what the
chances of selling it, the salesman
said, "Well, IF it didn't have a hole
in it, I think I could put it over."

Now, you understand, the dis-
tinctive point of advantage in the
doughnut was the hole but the sales-
man iffed the advantage into a dis-
advantage and his long stay in a
hospital after the loving embrace
given him by the Big Boss was
attributable by the Doctors not to
Bifferetis as directly contacted from
the Boss but to IFFER-E-TIS as
previously contracted by himself.

it will sell and the How to make it
sell. You are given all particulars
from A to Z. One fellow will scheme
and study to capitahze on the op-
portunities afforded him on WHAT
HE'S GOT in that product; the
other fellow will IFFIT to death.
He'll think up more excuses why he
can't sell it than explanations why
it can be sold. "The product is al-
right BUT"— that's his verdict and
when he bellows that "BUT" put
it down in your httle red book,
that fellow's got IFFER-E-TIS.

It's wisdom to keep figuring how
you can improve your opportunities
IF so and so were done but it's
suicidal to neglect your present op-
portunities by day-dreaming about
the pretty pastures ahead when you
should be pulling out the weeds from
around your feet in the fertile field
where you are standing NOW.

IF, when you are hungry and IF
you had some bacon, you'd have
bacon and eggs IF you had some
eggs, do you wait for bacon and
eggs or do you eat what you can get?

IF you had a million dollars, would
you take a trip? Lacking the miUion,
do you just hang around your own
back yard or go as far as you can
with the few dollars you have short
of a million?

"IF my house were only a httle
more liberal on credit, I'd — "whoa,
fellow! If the credit terms of your
house were as elastic as a new rubber
band, you'd dig up another IF. Do
business by selling the credit terms
you've got and it can be done when
you beheve it can!

If there is an "IF" to your prop-
osition, it's up to you to remove it
or not to see it. Cash in on the
possibihties your product possesses
today not on the potentiahties it
might have if !

Every failure would have been a
success if it hadn't been for the
presence of the "IFS" and every suc-
cess would have been a failure were
it not for the absence of the "IFS."

Let's go ahead on WHAT WE'VE
GOT — not stand still waiting for
WHAT WE WANT.

Let IFFER-E-TIS lodge in the
dictionary — we. Salesmen, have no
home for it!

What say?

Yours, noifferetis,

One can easily ascertain the symp-
toms of IFFER-E-TIS. For instance,
you have a product to sell. You are
told the price, the terms, the Why I three miUion behind'you.

That's it— "GO AS FAR AS YOU
CAN" with what you've got and
stop moaning for the moon!

"IF there hadn't been three fel-
lows ahead of me, I'd done some
business" — cripes, man, there are

PhiUies

Bayuk Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

BAYUK BRANDS BUILD BUSINESS

II

!

national convention in New York in May will, perhaps,
remember that I called your attention to the efforts of
Leon Henderson, administrator of the Office of Price
Administration and Civilian Supply in establishing
price controls in many defense industries, and I ex-
pressed the belief that this might eventually extend to
retail enterprise. Well, on June 29th the New York
Times carried a long article which discussed this very
possibility. It stated in part : ^^Indications that Fed-
eral price control may ultimately extend to retail mark-
ups were seen last week as the Office of Production Ad-
ministration and Civilian Supply widened its activi-
ties.'^ Naturally, I consider this a matter of primary
concern to your national ssociation and you can be
assured that we shall be alert to everv more in this
direction.

The Ohio Supreme Court on June 25th held that
Ohio fair trade law contracts which sought to peg the
retail price of leading brands of cigarettes at 15 cents
a pack were in violation of the State's anti-trust laws.

Since Governor John W. Bricker signed Ohio Sen-
ate Bill No. 158, the Unfair Cigarette Sales Act, mak-
ing it effective on August 28th, fair trade leaders
throughout the country have been complimenting retail
organizations in Ohio and especially the Ohio State
Tobacco Association upon the fine work accomplished
m securing passage of the measure.

The tobacco division of the Ohio Fair Trade Act
and the majority of retailers had agreed upon a price
of 16^ per package, plans for enforcement of which
were reported to be well under way.

WINDPROOF SERVICE LIGHTERS

Dealers who sell the popular Zippo windproof
service lighters recently introduced by the Zippo Mfg.
Co., Bradford, Pa., are profiting from the growing pub-
lic interest m ^^ matters military" brought about by the
national defense program and the enrollment of young
men by the thousands in Uncle Sam's armed services.
Attractive bronze insignia of the various service
branches, embossed on the handsome two-tone chrome
case, give these new lighters a timely sell-on-sight ap-
peal tor the service men and for the folks back home
who are seeking useful gifts for the bovs. The wind-
proof dependability and the durable construction of
tliese Zippo hghters make them especially practical for
the rugged outdoor life of the armed services
• 1 T^y.^^^ insignia available with the new lighters
include the popular all-purpose Aviator's Wings and
Propeller Army Wings, Navy Wings, Crossed Rifles,
Crossed Sabres, Crossed Cannon, and other Army
Navy, Marine and Coast Guard emblems, as well as a
btars and Stripes'' design for those back home

MORRIS DISPLAY DRAWS THRONGS

^^.'^^\^^''^^^ .""^ ^^^^ persons daily has visited the
fl-3. ^^?*'' miniature factory on the Boardwalk at
Haimd's Pier, Atlantic City, N. J., since its opening
on Memorial Day. Cigarette-making and packaging
machinery m full operation are the principal attrac
tions at the miniature factory, enabling thousands to
see how cigarettes are made in the modern manner.

vi.if?f fl ""l^^i^'Pr^^"^^? ^ ^^-^ L*^- I^c-^ recently
visited the exhibit. They included Alfred E. Lyon

executive vice-president; Thomas G. Gannon, vice-
president; and Milton H. Biow, president of the Biow
Advertising Agency.

8

CHURCHILL'S CIGAR
TYPIFIES VIRILITY

By Albert H. Gregg

EMOCEACY'S fate is very largely in the
hands of cigar-smoking Titans who think
wisely and act firmly and do better with the
stimulating puff. Winston Churchiirs cigar
IS today the actual symbol of the British nation in its
courage, fortitude and confidence of ultimate victory
just as his secretary, Phyllis Moir, has recently
written; ^^That cigar typifies virility just as the Cham-
berlain umbrella was the emblem of appeasement."

The cigar of William S. Knudsen exemplifies
American determination to see it through in mobilizing
the power of America.

Their many photographs, published wherever men
love liberty, wherein the cigars are shown as the in-
evitable companions of these men of achievement,
illustrate the importance of the cigar as distinctive to
men and as a solace and impetus to them in their
colossal undertakings.

When democracy is saved, through such men as
these, let the world remember their cigars while pay-
ing tribute to the great men who smoked them.

Tobacco is used by three out of four male adults
m this country.

By carefully checked investigation, it has been
shown that 14,500,000 men smoke cigars.

Fully 65 per cent, of the 51/2 billion cigars smoked
m 1940 were bought by men whose family incomes are
less than $2000 annually.

1,520,000 of the men who smoke cigars only, spent
but $1.50 a week or less for cigars ; of those who use
cigarettes only, 3,019,000 spent $1.50 a week or more
Cigar smoking is not an expensive habit !
It IS also interesting to note that smoking is pro-
vided for in 80 per cent, of family budgets.

An estimate has been made that men in the army
of 1941 will consume 69,000,000 cigars. The soldiers
want cigars particularly for their after-dinner recrea-
tional period. About 6,000,000 cigars were used bv
the officers and men of the Navy in 1940, a figure which
obviously will be far exceeded this year.

^ I am glad to note that movements, public and
private, are well underway to aid in getting our service
men the smokes they so desire and need.

The head of the Cigar Institute, which is a co-
operative endeavor by manufacturers who represent
at least 75 per cent, of the dollar value of the national
cigar business, declared that ^'the cigar is beino- re-
stored to popularity.'' "^

The Cigar Institute has a single purpose, which is
to increase and broaden the pleasure of peaceful com-
lort which mankind derives from smoking.

A survey made for the Cigar Institute shows that
today a vast part of the cigars consumed in the United
Mates are used by those who smoke tobacco in other
torms part of the time, but have learned to enjoy a
cigar when the opportunity affords. A man may wish
to smoke cigarettes or a pipe during certain hours of
tHe day, but this does not preclude the enjoyment of a
good cigar at the proper moment.

The Institute also is supported by 230 associate
members, who are engaged in the wholesale distribu-
tion of cigars including practically all the leading
houses m this field, and by the Cigar Boosters League,
with a membership approaching 3000, made up of the
salesmen of the manufacturers and associate members.

The Tobacco World

TOBACCO SITUATION IN IRELAND

WING to the urge that still prevails in Ireland
for food crops, tobacco growers have carried
over into 1941 their policy of voluntary re-
striction of tobacco acreage, according to in-
formation received in the Office of Foreign Agricul-
tural Relations. The Irish Government permits a
planted area of 1500 acres, but prospects at planting
time of this year were for only about 200 acres. This
area compares with 300 acres in 1939, and 146 acres
in 1940.

The 1940 crop was allocated to manufacturers dur-
ing the first quarter of the year on the basis of their
^^^ix„^\ ^ ■w^^*.►.,uxA*pvxv^li yji. ic*vv ictti. xiju luiai crop
amounted to 124,063 pounds (farm-sales weight). In-
formation is not yet available as to the total value
and average price per pound, but owing to high ship-
ping rates for imported tobacco, the price of the home-
grown crop will be appreciably higher than in previous
years.

Reports indicate that very small quantities of leaf
tobacco were imported into Ireland in 1940 and dur-
ing the first quarter of 1941. At the end of March,
1941, reserve stocks in bond amounted to less than
eight months' normal supply. Leaf imports into Ire-
land average about 10 million pounds annually, 97 per
cent, of which originate in the United States. Cigar-
ettes manufactured in Ireland are of the English type
made entirely of American flue-cured leaf. Chewing
and smoking tobacco contain, on the whole, nearly two-
thirds flue-cured tobacco of the darker grades, and
about one-third dark types— United States fire-cured
and Green River.

The Government began to restrict leaf consump-
tion about the first of March. Delivery of unmanu-
factured tobacco from bonded warehouses for home
consumption was restricted as of March 2, 1941, to the
extent that the quantity delivered to any manufacturer
during each week should not exceed a sixty-fifth of the
manufactured tobacco cleared by such inanufacturer
for home consumption during the year ended March
31, 1941.

It was reported that these restrictions would not
have any effect, at present, on the quantity of cigar-
ettes or tobacco available to consumers, inasmuch as
manufacturers always have considerable stocks of to-
bacco on hand apart from that in bond. When these
stocks are exhausted, however, manufacturers and
traders will be prohibited from releasing more than 80
per cent, of the quantity released by them during the
year ended March 31, 1940. There is no plan to ration
consumers, but it is believed that the restrictions im-
posed will discourage hoarding and afford a good op-
portunity to effect judicious economy.

Prospects are said to be favorable for a slightly
mcreased tobacco acreage in Ireland during the cur-
rent year, although out of 1500 acres allowed by the
(xovernment for tobacco production in 1940, only 143
were utilized, and the crop amounted to less than
125,000 pounds, according to a report from the Amer-
ican consulate in Dublin. Rehandling and bonding of
the home-grown 1940 crop was completed by the end
of the year, and this tobacco will be valued' and allo-
cated to the manufacturers at an early date.

The domestic tobacco crop in Ireland, however,
plays but a small part in the supply of leaf that feeds
the factories. Normal leaf imports amount to about
10 million pounds annually, 97 per cent, of which orig-
inate in the United States. As very small quantities

August, 1941

LORI LLARD'S POPULAR LEADERS

Something NEW*

has been added!

It's the new Old Gold-enrichcd
with a rare imported tobacco—
so now it's better than ever!
Get more pleasure from your
Old Gold now that something
new has been added.

9ic NEW-A pHiad ImportMl leboece, from Hm
•ottcm M*dit*rran«an— a tobacc* whot* small
aromatic loavot impart now lifo and zott fo tho

4CTS -

(?£xrvtla^d^(xrn/uz/n>cf.

Americo't oldeit tobacco mcrdtonh— Estobtbhad 1760

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands

BETUN, AROMATIZER. BOX FLAVORS. PASTE SWEETENERS

FRIES & BRO., 92 Reade Street, New York

11

CIGAR BOXES

Tel. Algonquin 4-9532

i&^^^

Established 1875

In 6 stock models— 75' to $6.00

Newest Ciqar-Box display fixture. M^kes
cieaiers !v:nk. obsolete racks. Virqm tern,
Jory. Agents wanted; Jobbers, Manjfa--
turerr,. Salesmen can't rr^iss oii these.
A'k for 1941 folders tcd?y.

QUIKSALE RACK CO.

315 - 8th Straet Brooklyn, N. Y.

were imported in 1940 and as none has arrived re-
cently, the reserve stocks in bond on January 31, 1941
were estimated at only eight months' normal supply!

»'

Are You Getting Your Share?

Thousands of dealers are benefiting by the increased demand for

MANILA CIGARS

More and more smokers are enjoying the sweet mellow flavor of this famous Philippine To-
bacco, grown in the valleys of eternal summer and sunshine.

They are made entirely by hand under strict government regulations and sanitary control.
INCREASE YOUR SALES WITH MANILAS. They give more smoking satisfaction for the
price than many cigars costing more.

PHILIPPINE TOBACCO AGENCY

2362 MASSACHUSETTS AVENUE, N. W., WASHINGTON, D. C.

Story of Tobacco Wholesaling

N addition to the 4.0 million pounds of
Sumatra leaf from the 1940 crop that were
sold in the New York Free Port, it is now
estimated that an additional supply of ap-
proximately 5.0 million pounds, made up of the better
European grades, will be held in storage in the United
States. Most of this leaf has already arrived and part
of it entered in bonded warehouses at the Port of Bos-
ton. Remaining supplies are being held at New York,
and the entire 5 million pounds is awaiting possible
export to Europe. The portion held in bonded ware-
houses cannot, in accordance with United States cus-
toms regulations, be reshipped to the New York Free
Port and if not exported within three years is subject
to confiscation by the United States customs author-
ities.

The shipment of 9 million pounds from the 1940
crop to the United States will leave about 14.2 million
pounds of the total production, estimated at 23.2 mil-
lion pounds export weight for sale or storage at other
points. It is estimated that only about 500,000 pounds
of the leaf can be sold in Asiatic and other markets
that will not be supplied from sales in New York.
Special storage facilities are being provided in
Sumatra to hold most of the remainder which repre-
sents nearly two-thirds of the crop. The storage ware-
houses have been arranged to provide ample protec-
tion against insect damage, but no provision can be
made under existing circumstances to prevent possible
deterioration due to unfavorable climatic conditions.

The large, unexported surplus from the 1940 crop
and small quantities still being held from the 1939 crop
are reported to have filled most of the available storage
space in Sumatra. Consequently, the producing com-
panies are faced with the problem of providing addi-
tional storage, at considerable expense, for leaf that
they may never be able to sell at satisfactory prices, or
curtailing production.

For the 1941 crop, which has recently been har-
vested, the acreage was reduced by 25 per cent, from
the 29.320 acres set last year. Insofar as possible, the
reduction was made on land which normally does not
produce leaf suitable for the American market. Con-
sequently, the harvest of American grades is estimated
to be approximately equal to that from the 1940 crop.
For future years, officials of the estate companies now
in the United States anticipate that so long as the

10

American market is open to them, and they can receive
favorable prices for the leaf sold here, the acreage will
be maintained at about the 1941 level even though there
is no satisfactory outlet for the portion of the crop
normally sold in Europe.

The reduction in acreage and the problem of dis-
posal of leaf that cannot be marketed under existing
conditions have created a difficult situation for the
producing companies with respect to utilization of
labor and land. All of the tobacco is raised on land
held under long-term lease, and payment for its use
continues at a fixed rate regardless of output. Labor
charges are also to a large extent a fixed overhead that
cannot be adjusted. Consequently, changes in the
handling of tobacco and a shift to substitute crops are
necessary. With respect to tobacco, part of the re-
duction in acreage will be made by growing the crop
on certain lands only once in ten years rather than
once in eight years as has been the practice. For the
most part this will be carried out on land where to-
bacco has been found subject to heavy damage from
(xranville wilt (known in Sumatra as slime disease).
It is anticipated that the longer period between crops
will help control the disease, improve the quality of
the leaf, and increase the percentage of it that will be
suitable for the American market. Consideration is
also being given to destroying before harvest all or a
part of the portion of the crop not suitable for the
American market. This, however, would augment the
labor problem and eliminate the possibility of a return
from niost of the tobacco grown. It could be done
only with the assurance that prices for the American
grades would be sufficiently high to justify such action.
Part of the over supply of labor will be taken up
by permitting laborers to produce more rice on the
estates than has been the practice in recent years.
This, however, does not offer much room for diversion
as Sumatra has in the past year produced a substantial
rice surplus. Other products being considered as sub-
stitutes for tobacco include rubber, tung oil and perilla
seed.

Most of the estates already have part of their
land in rubber plantations, and the recent removal of
the restriction on rubber production has permitted the
tapping of more trees, which has provided an outlet
for some of the excess labor. Expansion in rubber
plantings on tobacco lands, however, has not been con-

The Tobacco World

I ^*<if>^i^ -^ ■*-■*-

^ a ^ III - -^ ■*■ -^"^

NU.TONE DOOR CHIME ... 475
coupuiis. Ask the B sc W salesman
for a supply of the new full color
catalogs showing all the premiums.

sidored advisnblo bocauso of uncoi-tain w^orld condi-
tions.

For some years, tlio companies liave been experi-
moiiliiig ill the production of tung oil and perilla seed.
Both of these offer some possibility for a shift from
tobacco. Satisfactory results on an experimental scale
have been obtained with tung trees, Imt if tlieir jilant-
iiig is undertaken on a comiiiercial scale it would give
eiiii)loyment to only a fraction of the surplus tobacco
laborers.

The production of perilla seed has not been found
possible except when prices are at the high level that
now ])revails. Under existing conditions it might be
a suitable substitute for tobacco. The crop would give
eiii])]()yment to many tobacco laborers, since under
Sumatra conditions its production re(piires a large
amount of labor.

REYNOLDS METALS EARNINGS

Reynolds Metals Co. consolidated earnings for the
lialf year ended June 28, 1941, were $3,;3(i7,()r)7 before
provision for income and excess profits taxes, R. S.
Reynolds, i)resideiit, announced today. This compares
witli $2,061,770 for the corresponding' period of 1940.

After deduction for estimated normal income
taxes, the net profit for the first six months of 1941
was $2,52:^,552, and after provision for excess profits
tax the net profit was $1,886,853, as against $1,543,092
and $1,312,447 for 1940.

After providing for preferred stock dividend re-
quirements, the net earnings on 1,023,662 shares of
common stock outstanding for the six months of 1941
were $1,751,989 or $1.71 per share, compared with
$1,176,449 or $1.15 per share in 1940.

*' Production of ahmiinum has commenced at the
Listerliill, Alal)ania, aluniinniii plant of the Revnolds
company,^' Mr. Reynolds said, ^'with 1,70(),0()() ]H)unds
of vii'giii ahmiinum expected to be produced in July.

^'In the month of June the company shipped over
four niillion })ounds of fabricated aluminum, and expec-
tations are that fabrication of alumimini for national
defense will reach the total of sixteen million pounds a
month before the year is over.

*' Progress on the consti'uction of the Revnolds
ahnninum plant at Longview, Washington, has been
i-apid," Mr. Reynolds added, ^^with j)ro(luctioii ex-
pected to start there earlv in AuG'ust."

All-out Aid"

for Hard Work

Highlights of Quality

1. Distinctively MILD — so mild
you can smoke all day long.

2. Uncopyable blend of choic«
est tobaccos.

3. A fine character all its own.

4. Bums slowly, evenly, holds
its ash.

5. Always uniform in quality
and workmanship.

6. For over 25 years . . . the
national favorite.

7. Modem shapes, many sizes,
10c and up. What size, please?

i

ELilpao

Jorreal enjoyment

SWISS PAY PLENTY FOR SMOKES

In Switzerland, standard brands of American
cigarettes were selling- at the end of the tirst quarter
of 1941 for 1.40 francs (32.5 cents) per package. The
high price is the result of a 10-centinie price increase
made in the last quarter of 1940. The chano-e in price
had no noticeable effect on the demand, however, owing
principally to the fact that the supply is so short that
normal reactions to price changes do not materialize.

GETS RUM & MAPLE ACCOUNT

Rum and Maple tobacco and Three Squires pipe
mixture accounts have been transferred to Raymond
Spector & Co., Inc., effective August 11.

//

II

TWO PER CENT. DROP IN 1941 TOBACCO CROP

HE 1,376,500 acres of tobacco indicated for liar-
vest in 1941 is only about 2 per cent, less than
the 1,404,350 acres harvested last season. It
is, however, nearly 18 per cent, below the 1930-
39 average acreage. The reduced acreage in 1940 and
also that in 1941 from the level of previous years are
primarily a consequence of the curtailment, because of
the war, of exports of tobacco especially of the flue-
cured and dark fired types. The prospective produc-
tion of 1,316,481,000 pounds of all types of tobacco
combined is a decrease of nearly 10 per cent, from the
1940 crop of 1,451,966,000 pounds and is about 6 per

OPnf 1ps« fhan flip lO-vauv (AQ^().'^Q\ flvorqo'p rirnrlnri^

tion.

The 1941 flue-cured tobacco crop is now indicated
at 716,192,000 pounds as compared with last year's
production of 755,793,000 pounds and the 10-year aver-
age of 751,348,000 pounds. A flue-cured tobacco crop
of this size would be the smallest since the crop of
682,850,000 pounds produced under drought conditions
in 1936. Normally about 70 per cent, of the flue-cured
crop is produced in North Carolina and in that State
growth of tobacco has been somewhat irregular and
the crop as a whole is ^bout two weeks later than usual.

Farmers in all type areas in North Carolina ex-
perienced difficulty in getting a good stand of tobacco
this spring. Dry weather prevented normal develop-
ment of plants in beds and when transplanted many
of them died, necessitating resetting two and three
times and those that survived made slow progress.
Good root systems were developed, howover, and later
when frequent and sizeable rains came plants re-
sponded rapidly and made such quick growth that the
earlier irregularity of fields is being largely overcome
except for a somewhat ragged stand. Past experience
suggests that this quick growth tobacco may result in
a relatively light weight leaf. Conditions somewhat
similar to those in North Carolina have prevailed in
the other flue-cured tobacco states. Early season re-
ports of serious blue mold damage and shortage of
plants failed to materialize and most growers were
able to secure locally plants sufficient for their needs.

The production of fire-cured tobacco has been on
the decline for a number of years as cost of firing, loss
of foreign markets, and change in domestic consumer
demand have restricted the outlet for this class of
tobacco. It now appears that the 1941 crop of 71,027,-
000 pounds of fire-cured tobacco will be the smallest
ever produced in this country. If this forecast is borne
out later by actual sales the crop will be about 31 per
cent, less than the 1940 production and about 43 per
cent, less than the 10-year average production of 125,-
499,000 pounds.

The prospective yield of 825 pounds per acre for
fire-cured tobacco is also down sharply from last sea-
son's yield of 883 pounds. Virginia dark fired tobacco
has made about normal growth but the Black Patch of
Kentucky and Tennessee has been quite dry and stands
of tobacco are poor and growth retarded.

The estimated production of hurley tobacco of
325,361,000 pounds represents a reduction of about
13 per cent, from the 1940 production of 375,535,000
pounds and is slightly less than the 10-year average
production of 328,605,000 pounds. The acreage of
hurley tobacco for harvest this year is placed at 363,900
acres or a little more than the 360,500 acres harvested

in 1940. Spring droughts were broken in time to
enable farmers to plant their full intended acreages.
It appears that there is no serious shortage of labor
in the hurley area and this seems true in the other
tobacco areas as well, although it is noted that there
is an increase in the number of mechanical setters in
use because of the difficulty in some localities of secur-
ing ample labor. Burley tobacco plants were generally
adequate and stands are considered good.

The prices now being received by Maryland to-
bacco growers for their 1940 crop are higher than for
several years and may be a contributing factor in the
increase in acreage this year. It is estimated that
39,100 acres of tobacco will be harvested in southern

\f„,.„K,,>^l ^1,:^ ,,^, ,. 1 „.:a^i. no <\/u\ i„ i

xYxaijiaiiu tuis ytmi ct» uumpaiuu wiiii oOjU\j\j tiuiett icisi

fall.

A good stand was secured and ample June rains
have caused plants to make above normal growth for
this period of the season. If the estimated yield per
acre of 850 pounds turns out to be correct, it would be
the second highest yield of record, exceeded only by
the yield of 875 pounds secured in 1920.

July 1 indications point to a dark air-cured to-
bacco crop of 31,116,000 pounds compared with last
year's production of 42,212,000 pounds and the 10-year
average of 41,715,000 pounds. The decline in produc-
tion this season is partly due to a prospective yield
of 862 pounds compared with last year's yield of 887
pounds, but is principally due to a decrease from 47,600
acres in 1940 to 36,100 acres in 1941. All of the dark
air-cured types show smaller acreages this year than
last but the largest reductions were made in type 35
and type 36 in Kentucky.

A cigar tobacco crop of 139,550,000 pounds is in-
dicated July 1 compared with the 1940 cigar produc-
tion of 143,025,000 pounds and the 10-year average of
120,487,000 pounds. Reduced production this season
is indicated for both fillers and binders but wrappers
show an increase over last year's production. The
growing condition of tobacco is good to excellent in
most cigar tobacco areas. Stands are good and growth
has been above normal, as excellent rains fell in most
cigar tobacco sections during June.

TOBACCO ADVERTISERS AMONG LEADERS

Second annual edition of *' Expenditures of Na-
tional Advertisers in Newspapers, Magazines, Farm
Journals and Chain Radio in 1940," has just been
issued by the Bureau of Advertising of the American
Newspaper Publishers Association. The study shows
the amount of money spent in each of the four media in
1940 by all national advertisers whose individual ex-
penditures in any one of the media amounted to $25,000
or more.

The study also shows that the 1129 national adver-
tisers in that category had an aggregate expenditure of
$378,828,009. Of this total, $138,860,348 was spent in
newspapers; $135,137,630 in magazines; $11,078,483 in
farm journals, and $93,751,548 in chain radio. The
figures were compiled by Media Records, Inc., and Pub-
lishers' Information Bureau, Inc.

As recorded in the study, among the twenty-five
largest advertisers in the four media combined in'l940,
in the order named, were : R. J. Reynolds Tobacco Co.,
Liggett & Myers Tobacco Co., American Tobacco Co.,
and Brown & Williamson Tobacco Corp.

The Tobacco World

HEAP FINE RADIO SHOW

MONDAY MIGHTS. COIUMBIA BROADCASTING SYftEM

MODEL TOBACCO Presents

one of radio's outstanding hits

MODEL'S ''GAY NINETIES REVUE''

Starring BEATRICE KAY, Soubrette
JOE HOWARD, Master of Ceremonies

You and all your customers will liice it

VIRGINIA-SEED TYPES IN GERMANY

It is reported by the German press that the pro-
duction of Virginia-type tobacco is increasing in Ger-
man controlled territory. Many German cigarette
smokers have developed a marked preference for
American-type cigarettes or for cigarettes made chiefly
from Virginia tobacco, and it is to meet this demand
that efforts are being increased in the Hessian dis-
tricts of Germany to produce tobacco from Virginia
seeds. Some plantings are also reported in Austria;
approximately 200 acres were grown there in 1940.

Production of the Virginia-type tobacco, however,
falls short of meeting the demands of the cigarette
industry, especially since much of it is used in the
manufacture of fine-cut. German companies are said
to have partly financed experiments with Virginia-seed
types in Italy and Hungary, as well as in various
Balkan countries. Promising results are reported in
some instances, but the quantities harvested were un-
important.

Since February 1, 1941, the retail tobacco trade
in Alsace has been subject to the same regulations that
are in force in Germany, according to information ap-
pearing in the Frankfurter Zeitung. Thus the trade
in tobacco products is limited to retailers falling in
one of the following classes: (1) persons entitled to
purchase direct from the manufacturer at wholesale
prices, (2) small grocery stores that are supplied by
the wholesale trade, and (3) inns, canteens and or-
ganizations that buy from wholesalers and retailers.
Prior to the war there were approximately 1300 to-
bacco shops in Alsace, but it is expected that the en-
forcement of German restrictions will force a large
number to close down.

When the Germans occupied Alsace in June, 1940,
there were two tobacco factories in operation — a smok-
ing tobacco factory and a cigar factory. All other
tobacco factories had been moved to the interior in
September, 1939. Two cigarette factories in Stras-
bourg have been reopened, it is said, with some help
trom Hamburg. Raw tobacco for these factories was
supplied partly from stocks and partly from the
i^ rench Monopoly Administration in Paris.

Approximately 30 branches of German cigar fac-
tories have been established in Alsace, according to
reports, and the Reich Tobacco Board is said to have
placed about 66,000 pounds of tobacco at their dis-
posal. A total of 3500 workers are employed by the
Alsatian industry.

August, 1941

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter
It's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumbei for 67 years
15 Washington St. Newark, N. J.

II

Esiabliahcd 1886

"BEST OF THE BEST"

^^^^^L^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Florida

AUTO KRAFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111,
Detroit. Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling, W. Va.

13

Tobacco Merchants' Association
Registration Bureau,

341 Madison Ave.
NEW YORK CITY

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

Kegistration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A— An allowance of $2 will be made to members of the Tobacco Mer-
chant*' Asaocfation on ?9ch r^o^i^trstion.

Note B— It 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
•nade for every ten (10) additional titles necessarily reported.

CANCELLED REGISTRATION

ARBORWAY:—46,856 (T. M. A.). For cigars. Registered April
15, 1941, by Tiews Bros., Roslindale, Mass. Registration cancelled
May 26, 1941.

TRANSFERRED REGISTRATIONS

SUN RAY:— Registered in Tobacco, and 22,389 in Tobacco World,
tor cigars, cigarettes, cheroots, chewing and smoking tobacco.
Registered May 21, 1911, and May 29, 1911, respectively, by S. R.
Moss Cigar Co., Lancaster, Pa. Through mesne transfers acquired
by Fred. E. Druck & Co., Dallastown, Pa., and re-transferred to
A. J. Golden, Baltimore, Md., on May 26, 1941.

PENNYWISE:— 20,311 (Tobacco Leaf). For cigars. Registered
January 19 1901, by American Litho. Co., Chicago, 111. Trans-
ferred by Consohdated Litho. Corp., Brooklyn, N. Y. (who had
taken over the Cigar Label Department of the original registrant)
to Havatampa Cigar Co., Tampa, Fla., on June 3, 1941.

JOHN ADAMS;— 17,995 (U. S. Tobacco Journal), and 11,208 (To-
bacco Leaf). For cigars. Registered December 4, 1895, by Geo
Schlege, New York, N. Y. Through mesne transfers acquired by
Imperial Cigar Co. Lancaster, Pa., and re-transferred to Minkoff
Leaf lobacco Co., Lancaster, Pa., on May 29, 1941.

Internal Revenue Collections for June
Source of Revenue 1^41 194Q

cJ^^"' ,,• $ 1,159,375.57 $ 1,053,896.41

^ifi^"^" 60,201,392.83 52,696 445.21

x K ••••/•••. ; 527,445.86 521 376 76

Tobacco, chewing and smoking -. 4 452 550 46 4 4q«'^477^

Cigarette papers and tubes . . 141 934 32 '86 ^^6 n^

Leaf dealer penalties .' ^'^IV^f^ ^^'^J^^S

^Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based

on manufacturers' returns of production)

Month of April

Prodnrf m^t Increase or Decrease

Plug di^^^^n Quantity Per Cent.

Twfst M2^'1^? + 128,666 3.01

iwibi: ••.•.... 483,441 4- 25 439 ^^^

Fine-cut Chewing 402464 + 40 524 iflo

Scrap Chewing 3 745 494 I ox^xno ion

^-^•^-^ : 17208:577 X Jt326 \fz

^""^^^ -^ 26,246,406 + 692,327 ~~2n

Four Months Ending April 30

Product 10A1 Increase or Decrease

Plug.. i.imV^n Quantity Per Cent.

T. p^ 16,101,640 -\- 498 498 ^10

'^°'^' •• 98,795,490 + 2,177,412 "^25

R. J. REYNOLDS DIVIDEND

A quarterly interim dividend of 50 cents per share
has been declared, payable in cash August 15 to R J
Reynolds Tobacco Co. stockholders of record at the
close of business July 25.

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

<^:

lESSE A. JJLOCJI, Wheeling, W. Va President

rmm'^^Vm^'r^",^ "^%^^?J.} Chairman Executive Committee

(jfcUKCih, W. HILL, New York, N. Y Vice-PresiHen*

(JEORGE H. HUMMEL. New York. N. Y V ce-Pres den!

S. CLAY WILLIAMS. Winston-Salem, N. C ... V ce-pfes dent

JULIUS LICHTENSTEIN. New York N. Y V ce-pJes deSt

ASA LEMLEIN. New York. N. Y. ..: Treasure!

CHARLES DUSHKIND. New York, N. Y Counsel and Managing Direct

Headquarters. 341 Madison Ave., New York City

CIGAR INSTITUTE OF AMERICA

Albert 11. Gregg President

^'varoM Garcia Vice Presiden

D. Emil is.lein TreasnT-lV

Samuel Hlumberg sSel^rv

iL M. Nussbaum : : : : : : : I I I : : :Y^<r^,^ior ' oi '^S^^

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

IS^W^A^D^^YiJeV •.•.•.•.■. Chairman of the Board

J. RENZ EDWARDS .■.■;.■■.■.■ Tr^f*^"*

JOSEPH KOLODNY 200 5th Ave N;ew VoVk; N.' Y. •::::.::::: Executive' SecreTa?;

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

\^^ M V^^^Pc^'^K^^-^^ Fifteenth St.. Brooklyn. N. Y. . .
8; \\ ^v^f4?^^^\' ^^ ^'^'" ^ve ' Trenton, N. J Fi

WALTER E. KIPPER x.caiuc

SAMUEL BLUMBERG '. c'^ Treasut

Sr&"' ^- ^'"'' ^^'^"•' ^^'t*^'- E- Popper. Harry C. Carr. and Arthur

President

W \\ Kitrvk idndlui" 6 i V'"' Ti'V*^""' ^'•,,-'; nrst Vice-President

ALBERT FRFFMA^9?''^f' ^\f' "^'timone. Md Second Vice-President

ALJitKi I'KLLMAN, 25 West Broadway, New York, N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA. INC

cf/FFF)1^V)^SS^Vv^l5??'"^^' ^^^ ^"^'^' ^- ^ P-ident

MALCOLM FLEISHER ...■.■.■.'.■ 1 reasurer

SEIGFRIED F. HARTMAN .■...■. Secretary

Counsel

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA
INC., 200 Fifth Ave., New York, N. Y. ''''^'^^^^^

ALVARO M. GARCIA r, •,

WALTER E. KIPPER President

~ .1 reasurer

isel
W.

Schwarz. " ' '"' ^' ^"»'»^'^'' i^t'iy v.. ».arr. ana Arthur A.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion. Pa r. ..

ARTHUR McGUIGAN, Red L on. Pa •^:- • Pj-^irfent

RUSSELL S. STINE. Red Lioi Pa ..Vice-President

A. S. ZIEGLER. Red Lion. Pa. . " Secretary

Treasurer

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

ARMANDO RODRIGUEZ ^^ .,

FRANCISCO GONZALEZ .....■.■:■;; ......President

JOHN' LEVY Vice-President

FRANCIS M. SACK ".'.'.'. Treasurer

Secretary

INDEPENDENT RETAIL TOBACCONISTS'
ASSOCIATION

BERNARD SCHWARZ „ .,

BENJAMIN FRIEDMAN ... i;.'-- Wr" •S''^^?'^^"*

EDWARD H. SNYDER -.Ftrst Vice-President

IRVING CHAPMAN ^^^1^'\ Vice-President

ARTHUR W TONES Ihird Vice-President

JOE GROSSMAN Financial Secretary

BERNARD BERNSTEiN," ^i Broadway; New ^0;!^: N.- yV ■.■.■.•.•.■.•.•.•.•.•.;•.• ScXr^

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA INC

VICTOR KORMAN ^ .,'

CHAS. B. KIRWIN President

LEO RIEDERS. 604 WesV l^incf g- -." New" YoVk^

H

CANADA CROP DOWN

RELIMINARY estimates of the 1941 acreage
planted to all types of tobacco in Canada show
a reduction of approximately 7 per cent, from
the 1940 plantings of 67,880 acres and of about
62. per cent, from the record 1939 plantings of 92,300
acres. The flue-cured acreage has been reduced by
about 2 per cent, as compared with 1940, hurley 26 per
cent., and cigar leaf 15 per ceiit. The combined acre-
age ot all other types is approximately equal to that
planted in 1940, according to a recent release by the
JJominion Bureau of Statistics at Ottawa.

The 1941 flue-cured acreage is estimated at ap-
proximately 47,800 acres as compared with 48,610 in
1940, and the record 1939 acreage of 69,480 acres,
(jrower members of the Flue-Cured Marketing Asso-
ciation of Ontario were allotted 44,600 acres for this
season, which was substantiallv above the 1940 allot-
ment.

T^he Tobacco World

ESTABLISHED
1881

SEP 4

»4f

S E P T E M bTR'"''*^

1941

CIGARETTE OUTPUT MAY PASS
200,000,000,000 THIS YEAR

July was the eighth successive month to
set a new record high for a particular
month's cigarette output. Not since
November, 1940, has the total for any
month fallen under the total for the cor-
responding month of the previous year,
or failed to set a new monthly high.

Over the past 15 years, cigarette produc-
tion in the first seven months of the year
has accounted for just under 58 per cent,
of the full year's output. Projecting the
total for the first seven months of 1941
on the same basis would mean a full
year's production of slightly more than
201 billion cigarettes.

I i

HoBART B. Hankins — Editor

Copyright 1941, Liggett & Myers Tobacco Co.

Business Mcmager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

SEPTEMBER, 1941

No. 9

TOCKS of American-grown cigar-filler types
of tobacco amounted to 201,569,000 pomids on
July 1, 1941, an increase of about 15 million
pounds over the July 1, 1940, stocks. Type 41,
Pennsylvania Seerllpaf stocks wprp 119 oofi nno r^onr^Ho
Of this total about 83 million pounds were binders and
fillers, and about 29 million pounds were stemming
grades or lower. Type 42, Gebhardt, stocks were 19,-
207,000 pounds ; Type 43, Zimmer, 11,867,000 pounds ;
Type 44, Dutch, 8,005,000 pounds; Type 45, Georgia
and Florida sun-grown, 1,362,000 pounds; Type 46,
Puerto Kican, 20,771,000 pounds in the United States,
and 28,351,000 pounds in Puerto Rico. The cigar-
binder type stocks, some of which are used for wrap-
pers, were about 7 million pounds higher. Total binder
type stocks were reported as 139,478,000 pounds. Type
51, Connecticut Broadleaf stocks, were reported as 26 -
525,000 pounds; Type 52, Connecticut Havana Seed,
25,203,000 pounds; Type 53, New York and Pennsyl-
vania Havana Seed, 3,059,000 pounds ; Type 54, South-
ern Wisconsin, 41,274,000 pounds; and Type 55, 43,-
417,000 pounds.

OTAL producers' sales of all types of fire-
cured tobacco of the 1940 crop increased about
11 million pounds, or nearly 12 per cent., over
sales of the 1939 crop, and showed a 91/2 per
cent decrease in the general average price. Sales in
the 1940-41 season totaled 104,959,766 pounds and aver-
l¥^o^.'^^ P^^ hundred, compared with 1939 sales of
9^,960,544 pounds averaging $10.68. Total value to
growers of the 1940 crop amounted to slightly over 10
million dollars. This represented an increase of about
1 per cent, over the value of the 1939 crop. Fire-cured
sales were held on 12 markets in three states. Sixteen
sets of buyers operated on 55 sales floors. The first
market opened on November 25 and the last market
completed its sales on May 21. In the 1939 season sales
began two days later and were completed by the end of
April. The bulk of 1940 crop sales occurred in Janu-
ary and February, while 1939 sales were highest in
February and March.

90 per cent, of advances for deliveries. Nearly 23 per
cent, of all first-hand auction sales was delivered to
associations.

TOCKS of leaf tobacco owned by dealers and
manufacturers in the United States and Puerto
Rico on July 1, 1941, totaled 2,918,412,000
pounds compared with 2,637,822,000 pounds
on July 1, 1940, an increase of 280,590,000 pounds. Be-
tween April and July 1 of 1941, total stocks decreased
only 216,952,000 pounds compared with a decrease of
257,062,000 pounds during the same period of 1940.
Stocks of flue-cured tobacco were 1,358,561,000 pounds
as compared with 1,198,149,000 pounds. The stocks of
Type 11 were reported as 504,760,000 pounds: Type
12, 497 072 000 pounds; Type 13, 247,136,000 pounds;
Type 14, 109,593,000 pounds. P « »

ALES by separate types consisted of nearly 18
per cent. Type 21, 58 per cent. Type 22, 24 per
cent. Type 23, and Type 24 less than fiwe-

nr.1.. r tT^^i^^ ^ per cent. These percentages show
only slight differences from those of the previous sea-
son. All tobacco sold at auction in the fire-cured area
was officially inspected, and sold directly to representa-
tives ot the buying organizations or delivered to the
if ^ofn .?' ^* P^i^^^^sly determined advance prices,
in 1940-41, m all fire-cured types, only participants in
cue Agricultural Conservation program received the
^^vance^prices in full. Non-participants received only

TOCKS of all types of fire-cured tobacco were
reported as 188,953,000 pounds, compared with
145,074,000 pounds. Virginia fire-cured, Type
21, stocks were reported as 32,360,000 pounds :
Type 22 112,875,000 pounds ; Type 23, 43,200,000
pounds ; Type 24, 518,000 pounds. Burley stocks were
nearly 45,000,000 pounds higher, with 780,527 000
pounds. Maryland tobacco. Type 32, stocks were' re-
IT}^^^. 35,758,000 pounds. One Sucker stocks were
34,111,000 pounds; Green River, 33,153,000 pounds-
Virgmia sun-cured, 3,815,000 pounds; Eastern Ohio
904,000 pounds : Perique, 977,000 pounds ; other mis-
cellaneous domestic, 905,000 pounds; foreign-grown

in^ano^nnn"*^ smoking tobacco (Turkish and other)
1U»,»0J,000 pounds. '

HADE-GROWN wrapper type stocks were
reported as 11,049,000 pounds on July 1, 1941
with 7,792,000 pounds of Connecticut Shade
Qi, A ^^ 3,257,000 pounds of Georgia and Florida
Shade. The foreign-grown cigar-leaf tobacco stocks in
the United States on July 1, 1941, consisted of 9,215,-
000 pounds of Cuba (Havana) tobacco; 5,313,000
pounds of Sumatra and Java ; and 5,199,000 pounds of

£ if-f i" ' ^/«"^' /^^""^^ ^''^^^'°- i" addition to
the stocks of Sumatra and Java tobacco shown in the

report, there are about 7,000,000 pounds in the free

trade zone and m transit which is owned by the Nether

of S'Tof r'"'^' Corporation. The fibre's quoted
tor type totals are the sums of unstemmed and

tTTA^^^^ ^' ';P°'*"*^- T«''l«« a^e included show
rned bv'dri/ f^™-«ale«:^eight basis, and stocks
owned by dealers and manufacturers separately The
detailed report shows all stocks subdivided according
to groups recognized in the trade according

11

i

July Was Banner Month for Tobacco

AH Types of Tobacco Products Gained
in Sales of Revenue Stamps Excepting
Little Cigars, Chewing and Smoking

MONG the major classifications of tobacco prod-
ucts, only little cigars, chewing and smoking

luuacuu laiieu lu icgioicri gaixies iii tnjii.y cm i/iit.

basis of sales of revenue stamps, it is revealed
in the Supplement to the Tobacco Barometer of the
Tobacco Merchants Association of the United States.
For the eighth consecutive month, cigarettes estab-
lished a new high for a particular month, showing an
increase of 15.66 per cent. Snuff led in percentage of
gain, with 16.07. Large cigarettes increased 11.91 per
cent, in the total, and cigars of all classes rolled up a
total gain of 6.98 per cent.

Cigars of all classes in the U. S. totaled 487,033,-
145, as compared to 460,522,504, an increase of 26,510,-
641, or 5.76 per cent. Philippine Island cigars totaled
20,875,835, as compared to 14,112,873, a rise of 6,762,-
962, or 47.92 per cent. Puerto Eico cigars totaled
24,500, as compared to 178,700, a drop of 154,200.
Grand total was 507,933,480, as compared to 474,814,-
077, a gain of 33,119,403, or 6.98 per cent.

Class A cigars in the U. S. totaled 436,694,080, as
compared to 412,706,280, an increase of 23,987,800, or
5.81 per cent. P. I. cigars totaled 20,844,260, as com-

Increase or Decrease

Product July, 1941 Quantity Per Cent

Cigars :
Class A —

United States 436,694,080 + 23,987,800 5.81

Philippine Islands ... 20,844,260 -f- 6,777,325 48.18

Puerto Rico 10,900 — 104,150

Total 457,549,240 -h 30,660,975 7.18

Class B —

United States 3,539,835 — 88,912 2.45

Philippine Islands ... 325 — 12,382 ....

Puerto Rico 3,050 — 36,450

Total 3,543,210 — 137,744 374

Class C —

United States 42,938,690 + 1,459,794 3.52

Philippine Islands . . . 25,250 — 916

Puerto Rico 10,550 — 13,600 .'..'.

Total 42,974,490 + 1,445,278 3.48

Class D —

United States 3,546,075 + 1,088,485 44.29

Philippine Islands ... — 6,065

Puerto Rico

Total 3,546,075 -H 1,082,420 43.94

Class E —

United States 314,465 -f- 63,474 25.29

Philippine Islands . . . 6,000 -j- 5,000

Puerto Rico

Total 320,465 -|- 68,474 27.17

pared to 14,066,935, an advance of 6,777,325, or 48.18
per cent. P. R. cigars totaled 10,900, as compared to
ll.'i.O^O. a decline of 104.150. hnnffina* the class total to
457,'549,'240, as compared to' 426,888,265, a gain of 30,-
660,975, or 7.18 per cent.

Class B cigars dropped all the way down the line
for a total loss of 137,744, or 3.74 per cent.

Class C cigars in the U. S. totaled 48,938,690, as
compared to 41,478,896, a gain of 1,459,794, or 3.52 per
cent., which P. I. and P. R. losses reduced to 1,445,278,
or 3.48 per cent.

Class D cigars in the U. S. totaled 3,546,075, as
compared to 2,457,590, a rise of 1,088,485, or 44.29 per
cent.

Class E cigars in the U. S. totaled 314,465, as com-
pared to 250,991, an increase of 63,474, or 25.29 per
cent.

The little cigars total of 12,751,000 represented a
loss of 4.44 per cent.

Cigarettes totaled 18,404,859,690, large cigarettes
165,455, snuff 3,588,223 pounds, chewing and smoking
tobacco 25,246,366 pounds.

Following are the comparative figures:

Increase or Decrease

Product July, 1941 Quantity Per Cent.

Total All Classes:

United States 487,033,145 + 26,510,641 5.76

Philippine Islands ... 20,875,835 + 6,762,962 47.92

Puerto Rico 24,500 — 154,200

Grand Total 507,933,480 + 33,1 19,403 6.98

Little Cigars:

All United States ... 12,751,000 — 592,613 4.44

Cigarettes:

United States 18,404,257,790 + 2,491,616,987 15.66

Philippine Islands ... 31,900 — 30,620

Puerto Rico 570,000 + 539,840

Total 18,404,859,690 + 2,492,126,207 15.66

Large Cigarettes:

United States 150,455 + 7,905 5.55

Philippine Islands ... — 300

Puerto Rico 15,000 + 10,000 .".*.'!

Total 165,455 + 17,605 11.91

Snuff (lbs.):

All United States ... 3,588,223 + 496,801 16.07

Tobacco (Chewing and
Smoking) lbs.:

United States 25,246,366 — 994,801 3.79

Philippine Islands ...

Total 25,246,366 — 994,801 379

The Tobacco World

All Classes of Cigars Ahead This Year

Stamp Sales for First Seven Months
Also Register Gains for Cigarettes,
Little Cigars and Snuff; Others Down

IGARS and little cigars, cigarettes and snuff
are up ; large cigarettes, chewing and smoking

vyj KJixy^L^Kj ciic uOwii. liifcii i» tiitj recoru lor tne

first seven months of this year, compared to
the like period last year, as reflected in the sales of rev-
enue stamps. The figures are from the Supplement to
the Tobacco Barometer of the Tobacco Merchants As-
sociation of the United States. The all-time high
cigarette total for the period indicates that they may
pass the 200 bilUon mark this year, as compared to 180
billion in 1940.

Cigars of all classes in the tl. S. totaled 3,150,328,-
606, as compared to 2,951,405,292, an increase of 198,-

923.314, or 6.74 per cent. Philippine Island cigars
totaled 98,368,987, as compared to 122,918,069, a drop
of 24,549,172, or 19.97 per cent. Puerto Rico cigars
totaled 300,085, as compared to 713,400, a decline of

413.315. Grand total was 3,248,997,588, as compared to
3,075,036,761, a gain of 173,960,827, or 5.66 per cent.

Class A cigars in the U. S. totaled 2,840,748,240,
as compared to 2,668,447,640, a rise of 172,300,600, or
6.46 per cent. P. I. and P. R. losses reduced this figure
to 147,457,450, or 5.28 per cent.

1st 7 Mos.

Product Cal. Yr. 1941

Cigars:
Class A —

United States 2,840,748,240 +

Philippine Islands ... 97,984,865 —

Puerto Rico 141,835 —

Total 2,938,874,940 +

Class B —

United States 22,620,578 +

Philippine Islands ... 118 192 -f

Puerto Rico 66,050 —

Total 22,804,820 +

Class C —

United States 265,387,611 +

Philippine Islands ... 221,230 4-

Puerto Rico 91,900

Total ~ 265,700,741 + "

Class D —

United States 19,743,628 +

Philippine Islands . . . 21,330 —

Puerto Rico 300 -f-

Total 19,765,258 + "

Class E—

United States 1,828,549 . +

Phihppine Islands ... 23,280 —

Puerto Rico

Total 1,851,829 + ~

September, 1^41

Increase or Decrease
Quantity Per Cent.

172,300,600

24,616,835

226,315

147,457,450

940,580
69,195
84,150

6.46
20.08

5.28

4.34

925,625

4.23

22,324,799

88,899

103,150

22,310,548

9.18

9.17

3,084,126

11,161

300

3,073,265

273,209
79,270

193,939

18.51

18.41

17.57

11.70

Class B cigars in the U. S. totaled 22,620,578, as
compared to 21,679,998, an increase of 940,580 or 4.34
per cent., which was reduced to 925,625, or 4.23 per
cent., by a P. I. loss and a P. R. gain.

Class C cigars in the U. S. totaled 265,387,611, as
compared to 243,062,812, an increase of 22,324,799 or
9.18 per cent. A P. I. gain and a P. R. loss combined to
reduce this to 22,310,548, or 9.17 per cent.

Class D cigars in the U. S. totaled 19,743,628, as
compared to 16,659,502, a gain of 3,084,126, or 18.51 per
cent. ^

Class E cigars in the U. S. totaled 1,828,549, as
compared to 1,555,340, an advance of 273,209, or 17 57
per cent., which was reduced to 193,939, or 11 7 ner
cent., by a P. I. loss. ' ^

79 oiY^nl '''^?''' ^""^^^^^ 88,079,813, as compared to
72,214,796, an increase of 15,865,017, or 21.97 per cent.

Cigarettes in the U. S. totaled 116,894,863,140, as
compared to 105,322,927,442, an increase of 11,571,935,-
698, or 10.99 per cent.

Large cigarettes totaled 957,034, snuff 23,369 442
tobacco 173,897,831. The figures follow: ^^'''^^^^^^^

_ ^ ^st 7 Mos. Increase or Decrease

Product Cal. Yr. 1941 Quantity Per Cent.

Total All Classes:

United States . 3,150,328,606 + 198,923,314 6 74

Philippine Islands . . . 98,368,897 — 24 549 172 19 97

Puerto Rico 300,085 - 413,315 .

Grand Total 3,248,997,588 + 173,960,827 ~~5;66

Little Cigars:

All United States . 88,079,813 + 15,865,017 21.97

Cigarettes:

United States 116,894,863,140 + 11,571,935,698 10 99

Philippine Islands ... 131,300 — 59 870

Puerto Rico 2,743,900 -f- 847760 \'.\\

'^^t^^ -116,897,738,340 +11,572,723,588 ~7a99

Large Cigarettes:

United States 890 634 1 ^^ 97« i -? o*?

Philippine Islands . . . "iw -f All

Puerto Rico 60,000 - 25,800

'^°*^^ 957,034 - 158,953 "II24

Snuff (lbs.):

All United States ... 23,369,442 + 952,893 4.25

Tobacco (Chewing and
Smoking) lbs.:

United States 173,897,831 — 231057 On

Philippine Islands ... ...... ^oi,K)o/ u.l3

"^^^^^ 173,897,831 - ^^{^7 ~^^

5

(

m

1 ii

1

Calls Fair Trade Decision Forward Step

ALCOLM L. Fleisher, lawyer and executive
secretary of the Retail Tobacco Dealers of
America, Inc., was one of several authorities
in the fair trade movement who hailed as an
important step toward more effective enforcement of
fair trade the new type of injunction against a price-
cutting retailer signed by Justice Denis O'Leary Co-
halan in the New York County Supreme Court. The
injunction, which was granted in the case of Knicker-
bocker Liquors Corp. against Nine West Fordham

any fair-traded merchandise of Schenley Distillers
Corp. or Knickerbocker, and requires the return of all
current stocks of those brands on hand.

^ The injunction thus applies even to brands on
which no specific charges of contract violation were
made, and prevents the retailer from selling Schenley
or Knickerbocker goods obtained from any source in
the future.

' ' Supreme Court Justice Cohalan 's decision, ' ' Mr
Fleisher said, ^^ . . marks a further advance for
the Fair Trade Movement. It will serve as a deterrent
to would-be violators of fair trade contracts who now
face in addition to the usual injunction order, a decree
enjoining the future sale of all brands covered by the
fair trade contract involved. This decision if appealed
m my opinion, will be upheld in the appellate courts
as a proper equity power."

Joining Mr. Fleischer, spokesmen for retailers
handling drugs, gasoline, groceries and photo-finish-
ing described the new type of injunction as ' ' putting
teeth into fair trade enforcement" not only in the dis-
tilled spirits field, but in all lines where fair trade con-
tracts are a factor.

Typical of the comments made on the new type of
injunction was that of Sol. A. Herzog, spokesman for
the Gasoline Station Council of Metropolitan New
York, who described the action as one ' ' of definite in-
terest and value to all industries and trades that have
sought to utilize resale price maintenance.
• '*So far as I am aware," Mr. Herzog said, ''this
IS the first instance in this state in which a vendor
sought to compel its vendee operating under so-called
tair trade contracts, to return unsold goods because of
the violation by the vendee of the price schedule con-
tained m the contract.

** It seems to me that this result will be of su-
preme significance in other industries where there has
been more or less open violation of price maintenance
contracts In the drug and cosmetic fields," he said,
and m the retail sales of tobacco and candy and, in
tact, of all businesses that sell tangibles over the coun-
ter at retail, this decision affords to manufacturers a
most effective instrument to curb violations of their
price maintenance contracts."

According to Samuel Allan, of the law firm of
Weisman, Celler Quinn Allan and Spett, who brought
the suit for Knickerbocker, the new type of injunction
puts teeth into fair trade enforcement. ' '

''It guarantees the maximum of protection for
every retailer who is making a conscientious effort to

JlT? ^^ .1, '^ ^.^'\ ^''^^^ agreements," Mr. Allan said.
Under the old type of injunction, selling of goods
below the price m the fair trade contracts often con-
tinued even after the granting of the injunction. Since
the retailer could continue to sell the goods specified

it was necessary to prove that it had been sold below
the fair trade price."

Mr. Allan pointed out that under the new type of
injunction, the retailer nmst return all of the goods of
the supplier. Thus, he said, violation of the injunc-
tion can be demonstrated merely by proof that the mer-
chandise covered in the court order has been sold, re-
gardless of price.

Joseph Kolodny, representing the National Asso-
ciation of Tobacco Distributors, said: *'In our opinion
».^t, ai.v.iSxOii yji. oupreiiiu LuuiL Justice Coiiaian
greatly strengthens the principle of the Fair Trade
Acts because it specifically brushes aside any fictitious
argument by the retailer that, due to lack of consumer
acceptance, he is obliged to reduce his prices and more-
over, it demonstrates the sincerity and courage of the
producer and distributor."

Arthur M. Laufer, spokesman for the New York
Retail Grocers Association, said: *^The Feld-Crawford
Act was a welcome innovation for the protection of
the consumer public primarily, as well as the manu-
facturer and distributor. This decision aids in the
proper enforcement of the act. As the representative
of the New York Retail Grocers Association, I can
appreciate the necessity and importance of this deci-
sion."

Nicholas S. Gesoalde, secretarv of the Fair Trade
Committee of the New York State Pharmaceutical As-
sociation, predicted that Justice Cohalan 's decision
would arouse great interest in the drug field.

''The result of the Knickerbocker case," Mr. Ge-
soalde stated, ^^ indicates the possibility that manufac-
turers of pharmaceutical products might well re-exam-
ine their contracts to ascertain whether a provision
similar to that invoked by Knickerbocker Liquors
Corp. should not be incorporated into their fair trade
agreements."

BAYUK EXTENDS RADIO COVERAGE

Beginning Monday, August 4th, Phillies Cigars
expanded its radio coverage to a coast-to-coast net-
work of 73 stations, five nights per week— an increase
or 43 stations.

''The Inside of Sports," among the top men's pro-
grams for the past three years, will continue Tuesdays,
Ihursdays and Saturdays. On Mondays and Wednes-
days, a new radio program for Phillies will be aired—
Sizmg^Up the News" with Cal Tinney as commen-
tator. Tmney flavors his comments on events and peo-
ple with a rich sprinkling of homely humor and philos-
ophy. Commercial theme will feature Phillies as
''America's No. 1 Cigar."

DOMINICAN PRICE LOW

The 1940 crop of Dominican tobacco, amounting
to approximately 17.6 million pounds, has been almost
f i '^^i^ disposed of, according to a report received in
the Office of Foreign Agricultural Relations. The prin-
cipal buyers were Spain, Spanish Morocco and Gib-
raltar, bpain apparently, will take as much as can
be shipped Nearly all shipments to Spain were paid
tor in United States dollars against letters of credit
at the port of export. Prices paid to growers aver-
aged from $0.80 to $2.50 for 50-kilo bags (1.6 centlto
4.9 cents per pound). This is considered a very low
return. "^

The Tobacco World

%

lUCKY)

T E S

TJST...

::— J vMHrifrsf^'-fi^"'""^'-

A

.7 I>l

':^

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• Actual photograph— p. H. Lewis looks ovtr some fine, light tobacco, before aging.

"ft/aoT tfiis m <|oa/t cu^arefte ?"

"Then smoke Luckies!" says F. H. Lewis, independent to-
bacco warehouseman of Stoneville, N. C./'because Luckies
pay the price to get milder, better- tastin' leaf like this/'

*' DELIEVEme-fine, mild, light to-
^^ bacco like this costs real money.
But that's the kind Luckies go after
: . . and pay the price to get.

"I've seen 'em do it at one mar-
ket after the other, all through the
Tobacco Country ... so you can bet
your boots I smoke Luckies!"

Smokers, that's a pretty good
cue — from a man who knows
what he's talking about — a man
who has spent his life buying,

selling and handling tobacco;

Of course you want milder, bet-
ter-tasting tobaccos in your ciga-
rette—the kind that bring higher
prices at the auctions. Next time
you step up to a cigarette counter,
why not be sure you get these finer
tobaccos? Ask for Lucky Strike.

Remember: independent tobac-
co experts — buyers, auctioneers,
warehousemen— smoke Luckies by
an overwhelming majority . . ,

WITH MEN WHO KNOW TOBACCO BEST- IT'S LUCKIES 2 TO I

,» V

I* >

>je*^

September, 19 41

i

I

fl

11

I'

d?

1941-42 Marketing Season Opens

HE 1941-42 marketing season for flue-cured to-
bacco opened on August 5th with a supply of
more than 2300 million pounds — the largest on
record. Crop conditions on July 1st indicated
a 1941 flue-cured crop of 716 million pounds. Acreage
planted was less than the allotted acreage for this type,
but yields continue to be high. The indicated crop is
about 40 million pounds less than the 1940 crop, but
this decrease in current production is more than offset

in the current carry-over.

Exports of flue-cured for the eleven months ended
May 31, 1941, totaled 122.3 million pounds, a decline of
49 per cent, from exports during the same period in
1939-40. Exports to the United Kingdom under the
provisions of the Lend-Lease Act began in April. The
shipments are being made from Commodity Credit Cor-
poration purchases and loan collateral of the 1939 crop
of tobacco, and are expected to continue, possibly at an
increasing rate, for some time. Export figures by coun-
tries are no longer being released.

The Commodity Credit Corporation will again en-
gage in a dealer loan and purchase program for flue-
cured. For the first time, producer loans will be offered
to flue-cured growers. The new program will be the first
under the terms of new legislation requiring the offer
of loans to growers this year at 85 per cent, of parity.
Loan offers must be made if growers have not voted to
reject a marketing quota, and all quotas proclaimed
last year were approved by tobacco producers. Grow-
ers co-operating with the marketing quota are entitled
to loans at the full 85 per cent. rate. Non-co-operating
growers can obtain loans at 60 per cent, of the full rate
on as much of their tobacco as would be subject to pen-
alty if marketed. Producer loans will be based upon
Government grades; and with a normal distribution of
grades in the 1941 crop, the Commodity Credit Corpo-
ration programs will endeavor to maintain the season
average price at about 19.6 cents, which is 85 per cent,
of the June, 1941, parity of 23.1 cents.

The total supply of Burley is expected to be about
the same this year as last. The 1941 Burley crop is
indicated at about 325.4 million pounds. Plantings are
well within the marketing quota for this type. The
Maryland crop is expected to total about 33 million
pounds, 1 million larger than that of last year. The

1940 Maryland crop, now being marketed, is selling for
the highest prices on record. Production of both fire-
cured and dark air-cured tobaccos is down sharply
since last year, largely because of smaller acreage
under the marketing g[uotas approved last fall. The

1941 fire-cured crop is indicated at 71.0 million pounds,
31 per cent, less than last year's crop. Production of
dark air-cured types in 1941 is expected to be 31.1 mil-
lion pounds, 26 per cent, less than the production last
year.

^ The supply of domestic cigar tobacco in 1941 is
estimated to total approximately 436 million pounds, 6
million pounds less than the 1940 supply. Both 1941
production and October 1st stocks are expected to be
slightly less this year than last. Cigar consumption
during the year ended June 30, 1941, was the highest
since the twelve months ended June 30, 1931, and is
expected to remain on a high level during the next year.
Domestic consumption is marked bv continued
large increases in withdrawals of small cigarettes. All
8

major products showed increases in consumption, with
the exception of a small decline in plug chewing to-
bacco. The outlook continues to be favorable for the
coming year. With the exception of the beginning of
Lend-Lease shipments to the United Kingdom, there is
no major change in the unfavorable export outlook.

The 1941 flue-cured marketing season began
August 5th with the opening of markets in the Georgia-
Florida area (Type 14). The markets for the other
types opened as follows: South Carolina (Type 13) on
August 12th; Eastern North Carolina (Type 12) on
August 26th; Middle Belt (Type 11-B) on September
9th; and the Old Belt markets (Type 11-A) on Septem-
ber 16th.

In spite of a 1.6 per cent, increase in plantings from
736,000 acres in 1940 to 747,700 acres expected to be
harvested this year, the 1941 flue-cured crop may be
substantially reduced. July 1st indications were that
the crop will total 716.2 million pounds, 5 per cent, less
than the 1940 production of 755.8 million pounds. The
acreage for harvest is well within allotments under the
marketing quota of about 761,600 acres.

With the single exception of the yield in 1940 (1027
pounds per acre), the present indicated yield (958
pounds) is the highest on record. This yield has been
attained in the face of highly unfavorable early grow-
ing conditions. Drought interfered with the growth of
plants in seed beds, and later made transplanting diffi-
cult, necessitating consderable resetting. The season
on the whole has been a late one, and considerable
change may take place in the size and quality of the
crop between the July 1st survey and final harvesting.

As in 1939 and 1940, the Commodity Credit Corpo-
ration will this year conduct a loan and purchase pro-
gram for flue-cured tobacco. Loans will be made to
domestic companies normally buying for foreign manu-
facturers or for shipment to foreign countries outside
the Western Hemisphere. Small purchases for resale
to the LTnited Kingdom will be made from domestic
dealers who were not given loans in 1939, in order to
permit them to retain their export contacts. As in
former years, the major part of the program will be
conducted through purchases made for the corporation
through the buyers for foreign companies which are
normally the heaviest purchasers of flue-cured for use
outside the Western Hemisphere.

This year, for the first time. Congress has required
that loan offers be made to growers. Flue-cured grow-
ers who have co-operated with the marketing quotas
will be eligible for loans at 85 per cent, of parity. Non-
co-operators are eligible for loans at 60 per cent, of the
above rate, that is, loans at 51 per cent, of parity. Pro-
ducer loans will be based upon Government grades;
and with a normal distribution of grades in the 1941
crop, the Commodity Credit Corporation programs will
endeavor to maintain the season average price at about
19.6 cents, which is 85 per cent, of the June, 1941, parity
of 23.1 cents.

The number of flue-cured markets on which Gov-
ernment inspection (grading) is available will be in-
creased this year. All tobaccos sold at auction on the
designated markets will be inspected at Government
cost. The new markets designated for the extension of
inspection and market news service are : Hahira, Met-
ter, and Statesboro, Georgia (Type 14); Dillon, Loris,
and Timmonsville, South Carolina (Type 13); Kober-
sonville, Tarboro, and Williamston, North Carolina

The Tobacco World

(Type 12); Fuquay-Springs-Varina, North Carolina
(Type 11-b) ; Reidsville, North Carolina, and Danville,
Virginia (Type 11-a).

The total supply of flue-cured will be about 145
million pounds larger than that of last year. The ex-
pected drop in production will probably be more than
offset by an increase in stocks. It should be observed,
however, that of the July 1st stocks this year, approxi-
mately 200 million pounds represent additions to Com-
modity Credit Corporation stocks made during the past
year. Nevertheless, domestic stocks remain at a very
high level, largely as a result of the record 1939 crop.
The smaller disappearance this year than last was
v»w.v. ^^^^^*x.xj „kj BinciiiLi. i^Apyi tis. vv nil iiicrtjasiiig do-
mestic consumption and continuance of restricted pro-
duction, the domestic stocks situation is slightly better
this year from a long-run point of view. At the present
time, however, domestic manufacturers are evidently
holding abnormally large stocks.

For the twelve months ended June 30, 1941, tax-
paid withdrawals of cigarettes, generally considered
the best indicator of consumption, increased 6.8 per
cent, over the year before. This compares with a 5.8
per cent, increase in 1939-40 over 1938-39. Present in-
dications are for further increases in cigarette with-
drawals, though perhaps the percentage increase will
be smaller this year than last.

Manufacturers of smoking tobacco, the next most
important use for flue-cured, showed an increase of 2.6
per cent. Small quantities of this type are used in plug
chewing tobacco, the manufacture of which declined
1.7 per cent, in accord with the general downward trend
in tobacco chewing.

The precipitous two-year decline of flue-cured ex-
ports will probably be checked now that exports are
being made under the provisions of the Lend-Lease
Act. For the eleven months beginning July, 1940, how-
ever, flue-cured exports decreased 49 per cent, as com-
pared with the same period of the previous year.

Although shipments are reported to have increased
during June, they will not radically change the twelve-
month export figures. Shipping difficulties continue to
altect materially the volume of exports. However, it is
hoped that shipments will remain on a substantial level
tor the remainder of the calendar year.

The Lend-Lease exports are being made from Com-
modity Credit Corporation stocks, which were orig-
inally graded and packed especially for British use
As of July 15, 1941, the corporation held in purchases
or loan collateral 149.2 million pounds of the 1939 crop
and 199.6 million pounds of the 1940 crop. Tobacco
now being shipped is from the 1939 crop, which has
been aging for a year and a half.

Unofficial reports from the United Kingdom indi-
cate that supplies of tobacco products are quite short
relative to an increased demand, particularly for cig-
arettes. Popular British cigarette brands retail in the
United Kingdom at about twice the price level of lead-
ing brands sold in the United States, and in spite of
radically higher taxes, consumer demand has increased,
stocks of United States leaf in the United Kingdom are
believed to be below a year's requirements. Since im-
ports of Empire-grown tobacco were continued during
the last two years, it is probable that an abnormally
large proportion of the existing United Kingdom sup-
ply is Empire leaf. ^
Exports to the Far East, particularly to China,
continued to decrease because of increased production
ot flue-cured in these countries, shortage of shipping

(Continued on page 13)

September, ig^i

LORI LLARD'S POPULAR LEADERS

Something NE W^

has been added!

It's the new Old Gold-enriched
with a rare imported tobacco—
so now it's better than ever!
Get more pleasure from your
Old Gold now that something
new has been added.

^ NEW— A priiMl import*d tobacco, from tho
•att«rn ModitorranMn— a tobacco whoto (mall
aromatic l«av«t impart now lifo and xoit to tho
famous Old Gold blend! So tvmry momont you fpM«/
w»h Old GoU wUI bo ovon moro o/ootonl than b^form.

QsBoTi£lcuu{/S(Trrifuzmxifr

AJiWflco'j oMett tobacco m*rdMinti — Ettabli>h«d 1760

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWINC TOBACCO

Write for List of Flavors for Special Brands
BETUN. AROMATIZER, BOX FLAVORS, PASTE SWEETENERS

FRIES & BRO.. 92 Reade Street, New York

'I

J

CIGAR BOXES

Tel. Algonquin 4-9532 Established UTS

fS^^^^

The TOBACCO WORLD

is a good advertising- medium for all types of
tobacco products and smokers' requisites.

Are You Getting Your Share?

Thousands of dealers are benefiting by the increased demand for

MANILA CIGARS

More and more smokers are enjoying the sweet mellow flavor of this famous Philippine To-
bacco, grown in the valleys of eternal summer and sunshine.

They are made entirely by hand under strict government regulations and sanitary control.
INCREASE YOUR SALES WITH MANILAS. They give more smoking satisfaction for the
price than many cigars costing more.

2362 MASSACHUSETTS AVENUE, N. W., WASHINGTON, D. C.

Commodity Credit Program Announced

HE Department of Agriculture announced a
Commodity Credit Corporation program for
flue-cured tobacco authorizing purchases for
export trade and loans to producers at rates
equal to 85 per cent, of parity. The authorization per-
mits a total of 225 million pounds of tobacco to be
taken from the 1941 crop. J. B. Hutson, President of
Commodity Credit Corporation, said, ''The program
is designed to support market prices for producers and
to bring about the continued movement of flue-cured
tobacco into the export trade as far as existing con-
ditions will permit.''

The purchases will be made through export com-
panies in the same manner in which purchases of to-
bacco from the 1939 and 1940 crops were made. The
new program, with its authorization for 85 per cent,
of parity, is designed to support prices at an average
of 19.6 cents per pound, which is 3.20 cents higher
than the average of 16.4 cents per pound received by
farmers for the 1940 crop.

The maximum purchases any company can make
for export to countries now affected by the war will
approximate 70 per cent, of the average purchases the
company made for export in the three years, 1936-38.
Under the provisions of the purchase program,
Commodity Credit Corporation may also buy a maxi-
mum of 10 million pounds of leaf left over from the
1939 crop for shipment to Great Britain under the
lease-lend program. Dealers from whom these pur-
chases will be made originally bought the tobacco for
British requirements, but have been unable to deliver
it through regular trade channels.

Companies purchasing tobacco for the export
trade will buy for the Commodity Credit Corporation.
They will be given an option to purchase the tobacco
from the Corporation not later than July 1, 1943 at
prices equaling costs of the tobacco to the Corpora-
tion,^ plus all charges including interest. The Com-
modity Credit Corporation has the right, however, to
cancel purchase options at any time prior to July 1,
1943. Under this provision the Corporation will pay
specified costs borne by the company making the pur-
chase.

Producers who wish to obtain loans must have
their tobacco in such a condition that it will be ac-
cepted as collateral. The tobacco must be properly
graded, packed in hogsheads, and placed in storage.

10

Loans to producers will be payable on demand but not
later than July 1, 1943.

Mr. Hutson said, ''Some producers with whom we
have talked have indicated they would like to have
loans available in the event a bad market situation
arises. However, if the market situation is satisfac-
tory, they probably will not wish to make use of the
loan to any appreciable extent/'

Regarding current conditions, Mr. Hutson said,
"Although some improvement in domestic demand and
exports is expected, the flue-cured tobacco situation is
still less favorable than before the beginning of the
war. Production in 1940 under the marketing quota
program was 756 million pounds, as compared with
1,159 million pounds in 1939, and considerable quanti-
ties of tobacco are being carried over into the coming
marketing year.

"While flue-cured tobacco is being shipped to
Great Britain under the lease-lend program, shipping
difficulties will hamper trade generally, and total ex-
ports will doubtless remain low as long as the war
continues. In view of these circumstances, the loan
and purchase program has been adopted to acquire and
hold in storage part of the 1941 production until con-
ditions improve."

NETHERLANDS LIMITS IMPORTS

EGULATIONS of the Netherlands Indies Gov-
ernment provide that manufacturers of ciga-
rettes in that country shall use a fixed per-
centage of native tobacco in relation to im-
ported tobacco, according to information available in
the Office of Foreign Agricultural Relations. The
ratio for the second quarter of 1941 was 64 per cent,
native leaf to 36 per cent, imported leaf ; and for the
third quarter, 6S per cent, native to 32 per cent, im-
ported.

Consumption of cigarettes in the Netherlands In-
dies (as indicated by the retail sales) showed a slight
increase during the first 4 months of 1941 as compared
with a similar period of 1940. Consumption of stroot-
jes (cheap native cigarettes wrapped in corn husks or
tree leaves) declined for several reasons: (1) The tax
was increased by 50 per cent. ; (2) the price of machine
made cigarettes is decreasing, and (3) there is a grow-
ing desire among the new generation of natives to emu-
late the smoking customs of Europeans.

The Tobacco World

fB«W COUPON,^

:o

\^1

Mr. Dealer:

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plam
ends. Save these valuable coupons for cash or
one of the seventy luxury premiums.

Bnmn i, WiUianucn Tobacco Corpcratum

UNION MAM

MjMi !M ♦♦nollese Humor*'- every
Tie'sday night, coatt-to-coasi
NBC Red network.

WWiflNONOUSI NAND.VAC aiANIK
ISOO coupon*. Ask ihe B & W sales-
man for a supply of the new full color
cataloss showing ail the premiums.

TAX ON PAPER BOOK MATCHES

By Erio Calamia

President, Retail Tobacco Dealers of America, I tic.

HE ^'Revenue Act of 1941'^ has passed the
House of Representatives and is now up for
consideration in the U. S. Senate before the
Finance Committee. While many of the new
excise taxes will seriously affect the retail tobacco
dealers throughout the country, one of the proposed
taxes is of particular concern to us, namely the tax
of 2 cents per 1,000 on paper book matches or $1.00
per case. The custom in our trade, unfortunately,
calls for the giving of matches gratis to consumers
of tobacco products. With business in the retail to-
bacco field as difficult as it is at the present, because
of the highly competitive and cut-price conditions, an
increase m the cost of matches to us of approximately
one-third of their present cost will have disastrous re-
percussions.

Certainly, no member of the U. S. Congress would
be justified in criticising our motives, nor are we any
the less patriotic in protesting against the proposed
new tax on matches, which is in effect a 33 1/3 per
cent, tax and one which cannot be passed on to the
consumer, but will be absorbed by the retailer. We
are willing, more than willing to do our part for the
National Defense Program, but to single out the to-
bacco retailer for a top heavy and disproportionate
tax load just isn't consistent.

It is the duty of each and every member of this
association to write or telegraph the members of the
U. S. Senate Finance Committee listed on the enclo-
sure and, particularly, the Chairman and Senators
from your State. Tell them the simple facts in your
own words— that this tax will come out of your earn-
ings which today don't produce a living wage.

ALGERIAN AREA INCREASED

Prospects for the current tobacco crop in Algeria
are reported to be good, although many early sowings
were destroyed by frosts, according to information re-
ceived in the Office of Foreign Agricultural Relations.
The weather during the transplanting season was ex-
ceptionally favorable, and the plants have made a good
start.

All plantations are under strict Government con-
trol, and because of war regulations no information
has been released concerning the area planted or the
expected volume of the 1941 crop.

September, 1^41

GROWERS FAVOR INSPECTION

Tobacco inspection service was favored by over 78
per cent, of the tobacco growers voting as patrons of
twelve flue-cured markets in Virginia, North Carolina,
J^outh Carolina, and Georgia, the U. S. Department of
Agriculture announced. The growers voted in referen-
dums held July 24-26 under the provisions of the To-
bacco Inspection Act.

The referendums were held for the flue-cured mar-
kets at Danville, Va.; at Reidsville, Robersonville,
larboro, Wilhamston, and Fuquay-Springs-Varina,
N. C. ; at Dillon, Loris, and Timmonsville, S. C. ; and at
Hahira, Metter, and Statesboro, Ga. Voting was un-
usually heavy in these referendums, officials said.

A referendum will be held for three One Sucker
markets m Kentucky and Tennessee in September, and
a referendum will be held for twenty-seven Burley mar-
^^*i ^T. ^^^tucky, Tennessee, North Carolina, Indiana,
and Missouri early in October. There are sixteen Bur-
ley markets designated at the present time in Ken-
tucky, Tennessee, Ohio, Virginia, and West Virginia.

Growers who patronize markets on which the in-
spection service is conducted are furnished a daliy mar-
wKu"T^ report showing average prices by grades.
With the official grade plainly indicated on each lot and
a price report showing the average for each grade on
the previous day's sale, growers are afforded a reliable
guide in accepting or rejecting bids offered. This serv-
ice is furnished at no cost to the growers.

Tobacco inspection and market news services were
supplied on forty-four designated tobacco markets last
season, and inspection service at cost on thirteen un-
designated markets. The total of inspections includ-
ing those at prizeries exceeded 500 million pounds.

B. & W. ADDS 56 STATIONS

The Brown & Williamson Tobacco Corporation is
expanding the coverage of its College Humor program
Y/3^ ^^ addition of flfty-six stations to its current
NBC Red Network lineup, beginning September 30th.
With the addition of these stations a total of 110 will
carry the half hour broadcasts Tuesdays at 10;30 P. M.
E. S. T. '

o "^n ^ ff ^§.^^^ ^^ ^^ ^^^^^^ ^^ Raleigh cigarettes, and
trn^TT^ TT ^^^^^ Company is the agency. Station
KGU, Honolulu, has been added to the lineup of sta-
tions carrying College Humor and Uncle Walter's Doff
House, beginning August 12th.

ij

i

Canadian Harvesting Begins

AR VESTING of the flue-cured tobacco crop has
begun in the Essex and Norfolk districts of
Ontario Province of Canada and a better than
average yield has been forecast there, accord-
ing to recent reports received in the Office of Foreign
Agricultural Relations. Only meager information is
available as yet upon which to base an estimate of the
Canadian flue-cured crop, but it is not believed that
the small cut made in this year's plantings will ma-
tciittii}^ icuuctj lilt; iicirve»L, piuViueu iiie sea»un con-
tinues favorable. A somewhat greater reduction was
made in the area planted to hurley, some of which
may probably be offset by a heavier yield obtained
from closer planting, higher topping, and the intro-
duction of a new variety.

Canadian growers have reduced their tobacco area
during the past two planting seasons. This became
necessary because of a curtailed market outlook in the
United Kingdom. The area planted during the cur-
rent season was reduced to approximately 63,000 acres
as compared with 67,880 acres in 1940 and 92,300 in
1939.

Based upon the 1940 area, reductions were made
in the plantings of all important types in 1941. The
flue-cured area was reduced less than any — the allotted
area in Ontario (which produces 95 per cent, of the
crop) amounting to 98.5 per cent, of that planted in
1940. The flue-cured area of Quebec was reduced to
95 per cent, of the 1940 area. The hurley area was
cut to 74 per cent., the dark tobacco area to 90 per
cent., and the large-leaf and medium-leaf types to 80
per cent. Unimportant flue-cured plantings in British
Columbia, and small-leaf pipe tobaccos in Quebec were
actually increased as compared with last year.

It is reported that some flue-cured and hurley
growers in Ontario did not take full advantage of their
acreage allotments in 1941. Allotments to members
of the Ontario Flue-Cured Marketing Association were
44,600 acres, but the actual planted area in Ontario
(including plantings of non-members) was only 42,000
acres. The Burley Marketing Association of Ontario
reduced the 1941 burley area to 7960 acres, but only
7200 acres were planted.

Canadian burley was formerly used chiefly for
pipe tobacco or for export. During recent years, how-
ever, the lighter grades have been used largely for
cigarettes. The percentage of lighter grades has*^ been
increased by closer planting, higher topping, and the
development of a new variety at the Harrow Experi-
mental Station. This variety now comprises about 50
per cent, of the present burley acreage. Another ad-
vantage derived from the closer planting and higher
topping of burley is the fact that a greater yield per
acre is obtained, and thus a smaller area will produce
a larger quantity of tobacco. Even the reduced area
often produces as much tobacco as can be cured in the
available curing barns.

One thing that may prove a serious drawback in
harvesting the crop before frost is the scarcity of
labor. Growers are already concerned about the sit-
uation. Many tobacco laborers of other years have
gone to work in industrial plants, and it is feared that
a labor shortage may not only slow down the harvest,
but that the wage scale (and consequently the pro-
duction costs) may be increased. The Department of

12

Immigration has agreed to permit primers and curers
to enter Canada from the United States on temporary
permits.

The Department of Trade and Commerce an-
nounced on July 3, 1941, tliat if shipping space is
available, the United Kingdom intends to import eight
million pounds of Canadian tobacco during the next
twelve months. Shipments are not expected to begin
before September. It is indicated that accumulated

bi/OvKfe. Oi lAJc; jlJ*jJ nnd ±if±\j ulups Will ue USUU 10 inaKc

the shipments and that prices to be paid are yet to be
negotiated between buyer and seller. At present fif-
teen or sixteen million pounds of surplus leaf remain
unsold by Ontario Tobacco Sales and by growers whose
tobacco has been packed and stored for them by the
buying companies. It has also been announced that
one or two million pounds of tobacco will be sold to
Australia during the current marketing season.

SWEDEN INCREASES AREA

T IS estimated that approximately 585 acres
were planted to tobacco in Sweden during the
current year, according to information avail-
able in the Office of Foreign Agricultural Re-
lations. This area represents an increase of about
10 per cent, over that planted in 1940, when approxi-
mately one million pounds were produced from 531
acres. Faced with the difficulty of obtaining necessary
leaf supplies from abroad, the Swedish tobacco indus-
try is again attempting to expand domestic production,
which in normal years represents only about 5 per
cent, of the total tobacco consumption.

Inducements in the way of price increases ranging
from 8 to 14 per cent, were offered to growers of the
current crop. Prices are fixed in advance by the
monopoly company and the producers of air-cured to-
bacco will receive from 12 to 22 cents per pound for
the same grades that brought only 11 to 19 cents per
pound last year. Prices of best grade fire-cured were
set at 27 cents per pound, compared with about 24
cents in 1940. The margin of increase was smaller on
the lower grades of both types.

Depressed economic conditions in Sweden caused
a shift m tobacco consumption from cigarettes to smok-
ing tobacco, which carried a lower tax, was cheaper,
and consequently in greater demand. In order, there-
fore, to safeguard the revenue arising from tobacco
taxes, the Government increased the tax on smoking
tobacco on June 1, 1941, from 61 per cent, to 67 per
cent, of the retail price. This tax increase has brought
about a rise of about 12 per cent, in the retail price of
smoking tobacco.

It has been recently proposed that the rights of
the Swedish tobacco monopoly be extended to include
the tobacco import trade, which, together with the sale
ot tobacco products and the cultivation of tobacco, has
heretofore been free to anyone who would comply witli
the necessary regulations. The Government referred
the proposed monopolization plan of the import trade
to a number of trade organizations, the majority of
whom are said to be in favor of the proposed measure.
Up until the middle of June, liowever, the matter had
not been brought before the Riksdag, and it is not
known what further action will be taken in the matter.

The Tobacco World

r

' £*X*^(M^i.

noptv

rtOtvINt

MODEL TOBACCO Presents

one of radio's outstanding hits

NiODEVS ''GAY NINETIES REVUE''

You and all your customers will like it
Coast to Coast Every Monday Night

on Columbia Broadcasting System

MARKETING SEASON OPENS

{Continued from page 9)

space, and increasing Japanese control of markets. If
present trends continue, exports to the Far East will
decline further in the next few months.

Since April 1, 1941, no export data by countries
have been released. This regulation applies to all com-
modities, and has been promulgated in the interest of
national defense.

Stocks of foreign-grown cigarette and smoking to-
bacco, generally used for blending purposes in ciga-
rettes, declined from 101.7 million pounds to 98.6 mil-
lion pounds between January 1 and April 1, 1941. This
was the first time these stocks declined during the first
quarter of the year, normally a time when imports are
heavier than disappearance. Although imports since
April 1st have been substantial, stocks of foreign
grown cigarette leaf are now no greater than normal
with the current level of cigarette manufacture.

The July 1 crop report indicates 1941 Burley pro-
duction at 325.4 million pounds, a reduction of 13 per
cent, from the 1940 crop of 375.5 million pounds.
Acreage planted increased slightly to a total of 363,900
acres, somewhat below the Agricultural Adjustment
Administration allotments under the marketing quota
of 380,500 acres. The estimate of reduced production
results wholly from the anticipated decline in yield per
acre to 894 pounds from the 1940 record high of 1042
pounds per acre. The current crop is reported to be in
good condition, a favorable stand having been obtained
m spite of spring droughts which delayed setting out
plants in some areas. With favorable growing weather
during the rest of the year, it is possible that the crop
will be heavier than is now indicated.

In spite of the indicated decrease in the current
crop of about 50 million pounds, an expected increase
m October 1 stocks of over 40 million as compared with
a year earlier will leave the total supply about as large
as in 1940. However, on this basis the current 1941
crop would be below disappearance for the first time
since 1936.

Continued increases in cigarette withdrawals have
somewhat improved the general market situation of
I^urley, since approximately three-fifths of the crop
generally goes into this use. A slight offsetting factor
may be the sharp decrease this year in exports of
Burley. After holding to a 10 to 11 million-pound level
through 1939-40, the first year of the war, exports this
year are not expected to exceed 5 million pounds.

(Concluded next month)

September, 1^41

SPRUCE LUMBER

for CIGAR BOXES

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

It's Brighter
It's Lighter
It's Better

Uptegrove Lumber Co.

Cigar Box Lumber for 67 years

15 Washington St. Newark, N. L

Eatabliahsd 1886

"BEST OF THE BEST"

Maaufactured

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep Weat, Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-De sign-Cost

AUTOKRAFT BOX CORP.

\

Lima, Ohio
Chicago, 111.
Detroit, Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling, W. V«.

J

13

^ »

Tobacco Merchants' Association
Registration Bureau,

341 Madison Ave.
NEW YORK CITY

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A— An allowance of $2 will be made to members of the Tobacco Mer-
chants Association on each registration.

NT_t_ D rr . A. .„ - .-..._». <• .-.1 -. . .

*iv.i.», ju — A. a >c|/v»i, \ju a scaiwii ui a iiiic ucccssiiaics mc reporting oi 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.

TRANSFERRED REGISTRATIONS
AIR LINE: — 2836 (U. S. Tobacco Journal). For cigars. Registered
November 29, 1884, by Witsch & Schmitt, New York, N. Y. Trans-
ferred by Consolidated Litho. Corp., Brooklyn, N. Y. (who had
taken over the Cigar Label Department of American Litho. Co.,
New York, N. Y., successors to the original registrant) to Ameri-
can Box Supply Co., Detroit, Mich., on July 9, 1941.

ROYAL EMBASSY:— 43,233 (Tobacco Merchants Association),
l^or cigars. Registered May 15, 1923, by Schwab Bros. & Baer,
Inc., New York, N. Y. Transferred to Lambert Diaz, New York.
N. Y., on July 24, 1941.

Summary of Revenue Collections, 1940-41 Fiscal Year

Increase
1^0 1941 or Decrease

lobacco taxes:

Cigars (large) ....$ 12,897,763.57 $ 13,400,527.60 $ 502,764.03

Cigars (small) ... 97,685.79 113,969.87 16,284 08

Cigarettes (large). 16,854.96 12,059.83(6) —4.795 13

Cigarettes (small). 533,042,544.34 616,745,234.31(6)83,702,689.97

Tobacco, chewing
and smoking . . . 54,383,802.79

Cigarette pa p e r s
and tubes 1,279,507.90

Leaf dealer penal-
ties, etc 1,727.71

Cigarette floor tax

6,899,820.62

54,927,764.18

1,431,315.35

101,264.09
543,961.39
151,807.45

11,814.90
4,534,384.21

10,087.19
4,534,384.21

Total $608,518,443.59 $698,076,890.87 $89,558,447,28

Internal Revenue Collections for July

Source of Revenue 1941

^jgars $ 1,192,925.10

g»garettes 59,816,021.69

^""^ 645,880.13

1 obacco, chewing and smoking 4,544,420 87

Cigarette papers and tubes 169 160 82

Leaf dealer penalties 454 04

1940

$ 1,111,640.00

52,767,308.18

556,455.88

4,723,810.84

165,503.46

95.00

*Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based
manufacturers' returns of production)

Month of May

Product 1941

P^"», 4,288,460

Twist 375,686

rine-cut Chewing 427 150

Scrap Chewing 3,523,'563

Smoking 16,847,488

Total 25,462,347

Five Months Ending May 31

on

Increase or

Decrease

Quantity

Per Cent

42,558

0.98

127,002

25.26

84,414

16.50

15,560

0.44

1,156,946

6.43

— 1,426,480

5.31

Product 1941

5'"8^ 20,390,100 +

1 wist 2,245 094 --

Fine-cut Chewing '. '. 2'000',690 +

Scrap Chewing 17,637,350 +

Smoking 81,984,603 --

Increase or Decrease
Quantity Per Cent.

455,940

50,049

161,727

240,109

56,795

2.29
2.18
8.79
1.38
0.07

'^"^^^ •• 124,257,837 -f 750,932

0.61

* r ^^i!r^[°*l".*^**°," ^^"^^^ ^^^ '" pounds, and are subject to re
til published in the annual report of the Commissioner of In

un
Revenue.

'4

revision
ternal

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

.rcO-^(tw

^m

JESSE A. BLOCH, Wheeling, W. Va President

r^Fny4\/^^„^^',^^rJ' ^%^'^^-J'^; Chairman Executive Committee

CiEORtiE W. HILL, New York, N. Y Vice-President

GEORCJE H. HUMMEL, New York, N. Y V ce-Pres dent

S. CLAY WILLIAMS, Winston-Salem, N. C V ce-Pres dent

JULIUS LICHTENSTEIN, New York, N. Y ..V ce-Pres deSt

ASA LEMLEIN. New York, N. Y. frwsurer

CHARLES DUSHKIND, New York, N. Y Counsel and Managing DirecJ"

Headquarters, 341 Madison Ave., New York City

CIGAR INSTITUTE OF AMERICA

ALBERT H. GREGG President

u^Im\? ^x ^f'r^^^^ :://.vic;:pr«ideSt

U. C.M1L KLEIN Treasurer

SAMUEL BLUMBERG Sec?e?arv

B. M. NUSSBAUM V.VDiricVor or Publicity

THE NATIONAL ASSOCIATION OF TOBACCO

nTQTPTRTTTOPC TKTr'

Fnw^rrwyi'^fS, Chairman of the Board

EDWARD GRAUER PreqiHent

J. RENZ EDWARDS . Tjeasurel

Joseph KOLODNY, 200 Sth Ave., New York, N. Y. . ..;..\\.Ex;cutiVe'sic?etary

NATIONAL BOARD OF TOBACCO SALESMEN'S
„^„ ASSOCIATIONS

R L McrORmr^' q^^"' i"'*'".?*^ ^'" Bfo°klyn. N. Y President

W H ^orH ^i£\rP ^'^"? a''*' X'"^".*""' N. ; First Vice-President

AfltiA^ S5tli^A^T*o?'Vi?' ^l"' Baltimore, Md Second Vice-President

ALBERT FREEMAN, 25 West Broadway, New York, N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

^?Jf CALAMIA, 233 Broadway, New York, N. Y President

CLIFFORD M. DAWSON ..... Trea,„te;

MALCOLM FLEISHER V/. sSet/rJ

SEIGFRIED F. HARTMAN ^....... .......' .■.\\\\\'.".\';.\\*;.CoSnse^

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA

INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA Pre.JHent

WALTER E. POPPER . Treflnrel

SAMUEL BLUMBERG GeneVWl r^nnlel

feffl''rLn°T'F"7AJr*''° ^ Garcia (Ex-officio), Thomas' C.' Breen, Harl^y W
Jefferson, D. Era.l Klein, Walter E. Popper, Harry C. Carr, and Arthur a!

Sch

warz

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion, Pa Pre«Me«f

ARTHUR McGUIGAN, Red Lion. Pa . ".V.V.'.V. ' '. Vic^lPrf

JELL S. STINE. Red Lion, Pa ..;..:. slcre

A. S. ZIEGLER, Red Lion, Pa ::::::::;:::Treasurer

RUSSELL S. STINE. Red Lion, Pa. .". .".' "^'"writ

A. s. ZIEGLER, Red Lion, Pa. . ..:::.::::;:::::::::::::.^::::::::::::;;;;Tre[ ^"^

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

ARMANDO RODRIGUEZ p,«.-j«

FRANCISCO GONZALEZ ' " Vr.tirS!" 5^

nt

JOHN LEVY Vice-President

FRANCIS M. SACK ....:..■.'; Treasurer

Secretary

INDEPENDENT RETAIL TOBACCONISTS'
ASSOCIATION

BERNARD SCHWARZ

.President

BENJAMIN FRIEDMAN .... FiVcV v.v« p a .

EDWARD H. SNYDER oi;'"] Vice-President

IRVING CHAPMAN .............". ^^^A JJ?^*'?'""!^*"*

ARTHUR W. JONES p;«lY'T £"'?*"*

JOE GROSSMAN Financial Secretary

Bernard BERNSTEIN, 42 Bro^dwa;: New Yo;k: n: yV V.V. V.V.V.V.V.'.S^cJeTar"

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC

VICTOR KORMAN L ., .

CHAS. B. KIRWIN President

LEO RIEDERS, 604 West 162nd'StVeet.' New' YoVk:N:' Y.' V.'.lV.^llV.'.Sc^^^^^^^^

CAMPBELL JOINS REYNOLDS METALS

Dr. John Campbell, technical director of the In-
ternational Paper Company since 1929, has resigned
to accept a position with the Eeynolds Metals Com-
pany, Richmond, Virginia, where he will be in charge
of the plant efficiency department devoted to the anal-
ysis and improvement of manufacturing methods

Following his graduation in 1921 from the Massa-
chusetts Institute of Technology, Dr. Campbell became
technical adviser for the Johns-Manville Company in
this country, and the Abitibi Power and Paper Com-
pany of Ontario, Canada.

PUTNAM RENEWED FOR DUNHILL

Philip Morris & Company, Ltd., have renewed for
another thirteen weeks the fifteen minute news period
from 11 :00 to 11 :15 P. M., E. D. S. T., heard Thursday,
i^ riday and Saturday over WEAF in behalf of Dunhill
Cigarettes. George Putnam is the newscaster on this
program. The Blow Company, Inc., is the agency.

The Tobacco World

SIX, SEVEN MILES UP* In air no man can
breathe — and live! Motors — now even
pilots are "super-charged." On the station-
ary bicycle (above) Marshall Headle, chief
test pilot of Lockheed, breathes pure oxy-
gen for 30 minutes before a test flight in
Lockheed's new interceptor.

SHE CLIMBS A MILE A MINUTE. Ihey caii
her "Lightning." Pilot Headle clambers
into the cockpit, switches from a pocket
oxygen flask to his cabin supply, and
streaks for the stratosphere. He's test-flown
300 different planes. But when he lands,
it's always . . . "Now for a Camel."

YOU CANT SEE HIM up there. You can
scarcely hear the hum of his motors. Then
his voice comes into the radio tower:
"Headle-3 5,000 feet-diving now." And
you just hope! Seconds later— yes, seconds
—he's landing. And here he is (above)
cool, calm, lighting up a Camel.

THE SMOKES THE THING!

The smoke of slower- burning
Camels contains

28% LESS
NICOTINE

than the average of the 4 other
largest-selling brands tested — less than
any of them — according to independent

scientific tests of the smoke itself

R. J. Reynolds Tobarco Company, VVlnston-Salem, N. C.

■^f-fe-t-H

CHM^l,

s=^.

jrURKJSH &- DOMESTIC
'm^ BLEND ^'?-

CIGARETTES ^^|

CAMEL

"less nicotine in the smoke means more mildness to me,"

says test pilot Marshall Headle (above),
as he lights up his ... and America's . . . favorite cigarette

THERE may be little traffic at 35,000 feet, but test-diving
any new, untried plane is no Sunday joy-ride. No, not
even for a veteran like Marshall Headle (above).

Naturally, mildness is important to Marshall Headle. And
in the slower-burning cigarette of costlier tobaccos ... Camels
... he gets extra mildness - less nicotine in the smoke.

What cigarette are you smoking now.> Chances are it's one
of the five included in the nicotine tests reported above at
the left -tests which trace Camel's advantage right down to
the actual smoke itself. Obviously, the smoke's the thing! Try
Camels. For convenience - economy - buy the carton.

THE CIGARETTE OF COSTLIER TOBACCOS

BY BURNING 259^
SLOWER than the aver-
age of the 4 other largest-
selling brands tested —
slower than any of them
— Camels also give you
a smoking plus equal,
on the average, to

5

EXTRA SMOKES
PER PACK!

OF CIOARS

idea!

^^c\A^sjcxXjaJLe\y oijiy ^x^/jLa^ 1 vJ

FOR YOUNG MEN

• • •

AND MEN WITH YOUNG IDEAS

■.*^ I

I

ROM THE TIME when photography
was in the "liorse-and-bugj^y" stage
until today when streamlined studios
rule, there's one picture that hasn't
changed at all. Any smart scene will
reveal that the Robt. Burns Panatela
de Luxe is the choice of young men \
accustomed to the best in everything.
For here's a cigar that boasts an all-
Havana filler, specially cured tobaccos
that contribute the mildness, mellow
ness and richness that sum up to a^
deeply satisfying smoke. And the|
graceful aristocratic shape of this
Sophistocrat of Cigars not only meas-
ures up to the preference of smart
young men but wins the approving
glance of young ladies of good taste.

tIBRARr

OCT 4 1941

>(|.%.'l>IWlrt1IM»IIHtf%i»u]to»

OCTOBER
1941

ESTABLISHED
1881

WILL WORLD WAR II
BOOST CIGAR SMOKING?

Some researchers point to World War I
as the occasion for the gfreatest impetus
ever given to cigarette smoking.

From U. S. Army camps now comes word
of the growing popularity of the cigar
as the favorite smoke of the men in
training.

If one of the results of the present world
turmoil is a revival, among men of all
ages, of the manly habit of cigar smok-
ing, Adolph Shicklgruber will not have
lived entirely for destructive purposes.

^

ANGELA CUMMINS

Chesterfield's
Girl of the Month

M&^'

Tor MILDNESS, for BETTER TASTE and COOLER SMOKING,
Chesterfield is the winning cigarette . . . they're quick to satisfy with
their right combination of the world's best cigarette tobaccos.

All around you, pack after pack, you'll see Chesterfields
giving smokers a lot more pleasure. Join in, light 'em up,
and you've got a cigarette to cheer about.

Everywhere you go . . •

it's have a Chesterfield

Copyright 1941, Liggett Sc Myers Tobacco Ca,

HoBABT B. Hankins — Editor

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

OCTOBER, 1941

No. 10

IGAR smoking is not a luxury of the old and
the w^ell-to-do. There are 3,000,000 cigar
smokers who are less than thirty years of age.
More than 48 per cent, of men who smoke
cigars exclusively are in the $2000-or-under annual in-
come class. The biggest group of cigar smokers —
7,000,000 of them — consists of men between thirty and
fifty-four years of age. These are some of the high-
lights of a recently completed study of American male
smoking habits, conducted by the Cigar Institute of
America. The main point developed by the survey,
says the Institute, is that it eliminates the miscon-
ception that -cigars are exclusively an old man's smoke.
Moreover, since the national investigation was made,
tens of thousands of Army recruits are taking up cigar
smoking for the first time and have increased the pro-
portion of cigar smokers in the younger age classifi-
cation.

▲

HAT is not generally understood is that the
taste for cigars, unlike the cigarette or pipe
habit, is slow to develop among young men.
Although the majority of women really enjoy
the aroma of cigar smoke, there are an important few
who are more or less actively opposed to cigars for
one or more reasons. Some of these reasons for
feminine antipathy to cigars are: a dislike of cigar
smoke, an aesthetic objection to cigars themselves,
careless habits of the cigar smoker, and, strangely
enough, an envy of the almost purely masculine right
to smoke cigars.

HEN some crude, selfish man fills his wife's
living room with clouds of stale cigar smoke,
saturates her curtains with it, spills ashes on
her rugs, or retires into the isolation of a
smoke screen in the midst of a family altercation, her
irritation is understandable. When this continues, day
after day, it is understandable that her irritation
should be hard to control. But there is a great deal
to be said for the smoker's position. After all, cigars
may be a vice, but they are a very small vice consider-
ing the intense satisfaction the devotee derives from
them. Not only does the confirmed cigar smoker get
an immense amount of solace and relaxation from his
cigar, particularly in the pleasant period following a
good meal, but his habit goes a long way toward keep-
ing his temper even. With this in mind, the Cigar
Institute has released to the women's pages of the
general press an article which stresses the foregoing
and contains a possible solution to the problem of the
careless smoker. This is in the form of a list of rules
which, the article suggests, a wife might cut out and
leave in her husband's easy chair, stick on liis mirror
or paste in his hat. As a matter of fact, the cause of
cigar smoking should be materially aided if all cigar
users took heed of these rules, which follow :

0 NOT puff incessantly in small, crowded
rooms, particularly if the ventilation is below
par. This applies especially to situations in
which ladies are present. By the same token,
do not attempt to asphyxiate the next user of a tele-
phone booth by smoking while making a call. Dispose
of all dead cigar ends as soon as possible. At parties,
even if the host has to gather and empty the ash trays
himself, it will be worth the effort, as everyone will
be much happier. Don't hold a cigar in the mouth
while talking. Don't chew a cigar. It is an unpleasant
habit, and foolish, too, as it impairs the flavor of the
smoke. Block that ash. Place ashes carefully in a
tray. Nothing is more irking to a woman than to dis-
cover, of a morning, that her living room looks like
Pompeii after Vesuvius has been in eruption. If ashes
are accidentally dropped on a chair or carpet, don't
trot out that old chestnut about tobacco keeping the
moths away. Even if this were true, many women
would sooner have the moths. Before lighting a cigar,
make sure that no one objects. This courtesy is the
most important of all, marking the truly considerate
smoker. Remember that in England, a cigar is known
as ''the gentleman's smoke." It takes a gentleman
to smoke one properly.

APITALIZE on the new era of cigar popularity
— the advice given to drug retailers at the con-
vention of Associated Chain Drug Stores, by
Albert Gregg, president of the Cigar Institute
of America, could be, and should be, followed with
profit by independent tobacco retailers everywhere.
The purpose of his address was to leave with the
druggists some constructive thoughts leading them to
sell more cigars at Christmas time and throughout the
year. There is no other item sold in chain stores, he
pointed out, which lends itself so greatly to clever
salesmanship as cigars, and no other item which can
be made to contribute so much to a chain's reputation
for quality of merchandise and character of service,
and thus build name prestige which will draw trade
to every department. Cigars are very personal things
to the consumer and every good cigar smoker is inter-
ested in adding to his knowledge of cigars and of the
available assortment. He can be interested and de-
tained for the discussion of cigars any time he enters
the store. If the discussion is interesting and the sales
talk well considered, an enormous percentage of cus-
tomers can be inspired to increase their purchases.
Moreover, if the customer is well pleased with the sales
effort and the merchandise, he will go out of his way
to patronize the same store and clerk. Retailers are
missing a big opportunity to do an effective cigar sales
job, to render a pleasing service to an important part
of the public, to develop a profitable business which
would be helpful to every other branch of business in
their stores.

The TOBACCO WORLD (est. 1881) is published by Tobacco World Corporation; Hobart B. Ilankins, President and Treasurer; B. S. Phillips, Vice-Presid«nt; John Cleary,
Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued monthly. Subscriptions, available only to those engaged in the tobacco industry or trade, $1.00 a year
15 cents a copy; foreign, $1.75 a year. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879.

Cigars, Cigarettes, Snuff Up in August

AH Other Classes of Cigars Increase
Enough to Overcome Unusual Decline
In Class A; Cigarettes Gain 12/,

ESPITE the most unusual phenomenon of a
drop in the sales of revenue stamps for Class A
cigars in August, there was, nevertheless, an
increase during the month for all classes of
cigars combined, the rises ranging from 10.9 per cent,
for Class D to 37.66 per cent, for Class B. Increases
were also registered by cigarettes, large cigarettes and
snuff. Little cigars, chewing and smoking tobacco are
represented by minus signs. Those are the salient
features of the report of comparative data of tax-paid
tobacco products, based on the August sale of revenue
stamps, in the Supplement to the Tobacco Barometer
of the Tobacco Merchants Association of the United
States. Stamps for Puerto Rico products are not in-
cluded because the data were not available.

Cigars of all classes in the U. S. totaled 49,027,685,
as compared to 487,641,197, an increase of 3,386,488, or
0.69 per cent. For the Philippine Islands, the total
was 20,593,030, as compared to 18,695,465, an increase
of 1,897,565, or 10.15 per cent. Grand total was 511,-
620,715, as compared to 506,336,662, a gain of 5,284,053,
or 1.04 per cent.

Class A cigars in the U. S. totaled 437,282,725, as
compared to 445,784,965, a decline of 8,502,240, or 1.91
per cent. There was a P. I. gain of 2,145,275, or 11.66

Product August, 1941

Cigars :

Class A —

United States 437,282,725 —

Philippine Islands . . . 20,546,955 +

Total 457,829,680 —

Puerto Rico (a)

Class B —

United States 3,859,345 +

Philippine Islands . . . 4,150 —

Total 3,863,495 +

Puerto Rico (a)

Class C —

United States 46,410,225 +

Philippine Islands . . . 37,425 -j-

Total 46,447,650 +

Puerto Rico (a)

Class D —

United States 3,173,735 +

Philippine Islands . . . 500 —

Total 3,174,235 +

Puerto Rico (a)

Class E —

United States 301,655 +

Philippine Islands . . . 4,000 —

Total 305,655 —

Puerto Rico (a)

Increase or Decrease
Quantity Per Cent.

8,502,240
2,145,275

1.91
11.66

6,356,965

1.37

1,055,722
4,865

37.66

• • • •

1,050,857

37.36

10,488,771

25,565

29.20

• • • •

10,514,336

29.26

312,014
22,300

10.90

289,714

10.04

32,221
246,110

11.96

• • ■ ■

213,889

41.17

per cent., reducing the class loss to 6,356,965, or 1.37
per cent.

Class B cigars in the U. S. totaled 3,859,345, as
compared to 2,803,623, an advance of 1,055,722, or 37.66
per cent.

Class C cigars in the U. S. totaled 46,410,225, as
compared to 35,921,454, a rise of 10,488,771, or 29.2
per cent., which was increased to 29.26 per cent, by a
P. I. gain of 25,565.

Class D cigars in the U. S. totaled 3,173,735, as
compared to 2,861,721, an increase of 312,014, or 10.9
per cent., which was reduced to 289,714 and 10.04 per
cent, by a P. I. drop of 22,300.

Class E cigars in the U. S. totaled 301,655, as com-
pared to 269,434, a rise of 32,221, or 11.96 per cent.,
which was converted to a loss of 213,889, or 41.17 per
cent, by a P. I. loss of 246,110.

Little cigars dropped from 11,461,706 to 7,852,000.

Cigarettes totaled 17,776,522,190, as compared to
15,839,874,477, an increase of 1,936,647,713, or 12.23
per cent.

Large cigarettes totaled 148,200 for a gain of 30.14
per cent.; snuff totaled 2,971,991 pounds for a gain
of 1.86 per cent. ; chewing and smoking tobacco totaled
24,489,824 pounds for a loss of 5.56 per cent. The
figures are:

Product August, 1941

Total All Classes:

United States 491,027,685

Philippine Islands ... 20,593,030

Grand Total 511,620,715

Puerto Rico (a)

Little Cigars:

All United States ... 7,852,000

Cigarettes:

United States 17,776,522,190

Philippine Islands . . . 400

Total 17,776,522,590

Puerto Rico (a)

Large Cigarettes:

United States 147,800

Philippine Islands . . . 400

Total 148,200

Puerto Rico (a)

Snuff (lbs.) :

All United States ... 2,971,991

Tobacco (Chewing and
Smoking) lbs.:

United States 24,489,824

Philippine Islands ...

Total 24,489,824

(a) No statistics for August, 1941, on tax

Rico available at this time.
Source: Com^parative data of August tax

Internal Revenue Bureau.

Increase or Decrease
Quantity Per Cent.

+

3,386,488
1,897,565

5,284,053

0.69
10.15

+

1.04

3,609,706

1,936,647,713
2,000

1,936,645,713

31.49

+

12.23

+

12.23

4-
+

33,919
400

29.78

• « • •

+

34,319

30.14

+

54,342
1,441,438

1.86

—

5.56

• • • •

1,441,438

5.56

paid products from Puerto
-paid products released by

The Tobacco World

i

Eight Months' Gains Are Substantial

AH Major Classifications Except
Large Cigarettes, Chewing, Smoking
Share Increases in Stamp Sales

URING the first eight months of this year, compared to 278,984,266, a rise of 32,813,570 or 11.76

I) fications of tobacco products, except large
cigarettes, chewing and smoking tobacco, it
is revealed in a report of the sales of revenue stamps
for the period, contained in a Supplement to the To-
bacco Barometer of the Tobacco Merchants Associa-
tion of the United States. The figures for Puerto
Rico were not available, so they are not included in
the following summary.

Cigars of all classes in the U. S. totaled 3,641,356,-
291, as compared to 3,439,046,489, an increase of 202,-
309,802, or 5.88 per cent. P. I. figures total 118,961,-
927, as compared to 141,613,534, a loss of 22,651,607,
or 16 per cent. Grand total was 3,760,318,218, as com-
pared to 3,580,660,023, a drop of 179,658,195, or 5.02
per cent.

Class A cigars totaled 3,278,030,965, as compared
to 3,114,232,605, a gain of 163,798,360, or 5.26 per cent.
A P. I. loss of 22,471,560, or 15.94 per cent., reduced
this gain to 141,326,800, or 4.34 per cent.

Class B cigars in the U. S. totaled 26,479,923, as
compared to 24,483,621, an increase of 1,996,302, or
8.15 per cent. This was raised to 2,060,632, or 8.4 per
cent., by a P. I. increase of 64,330.

Class C cigars in the U. S. totaled 311,797,836, as

Product

Cigars :

Class A —

United States

Philippine Islands . . .

1st 8 Mos.
Cal. Yr. 1941

3,278,030,965
118,531,820

3,396,562,785
(a)

+

4-
+

-f

4-
+

+
4-

Increase or
Quantity

163,798,360
22,471,560

141,326,800

Decrease
Per Cent.

5.26
15.94

Total

Puerto Rico

4.34

Class B —

United States

Philippine Islands . . .

26,479,923
122,342

26,602,265
(a)

1,996,302
64,330

2,060,632

8.15

• • « a

Total

Puerto Rico

8.40

Class C —

United States

Philippine Islands . . .

311,797,836
258,655

312,056,491
(a)

32,813,570
114,464

32,928,034

11.76

Total

Puerto Rico

11.80

Class D —

United States

Philippine Islands . . .

22,917,363
21,830

3,396,140
33,461

3,362,679

17.40

Total

Puerto Rico

22,939,193
(a)

17.18

Class E

United States

Philippine Islands . . .

2,130,204
27,280

2,157,484
(a)

305,430
325,380

19,950

16.74

• • • •

Total

Puerto Rico

October, ig4i

0.92

per cent. A P. I. gain of 114,464, raised this to 32,928,-
034, or 11.8 per cent.

Class D cigars in the U. S. totaled 22,917,363, as
compared to 19,521,223, an increase of 3,396,140, or
17.4 per cent. A P. I. drop of 33,461 reduced this to
3,362,679, or 17.18 per cent.

Class E cigars in the U. S. totaled 2,130,204, as
compared to 1,824,774, a gain of 305,430, or 16.74 per
cent., which was wiped out, however, by a P. I. loss
of 325,380, the net being a drop for the class of 19,950,
or 0.92 per cent.

Little cigars totaled 95,931,813, as compared to
83,676,502, a gain of 13,255,311, or 15.84 per cent.

Cigarettes totaled 134,671,385,330, as compared to
121,162,801,919, a gain of 13,508,583,411, or 11.15 per
cent.

Large cigarettes totaled 1,038,434, as compared to
1,140,793, a loss of 102,359, or 8.97 per cent.

Snuff totaled 26,341,433 pounds, as compared to
25,334,198, an increase of 1,007,235 pounds, or 3.98 per
cent.

Chewing and smoking tobacco totaled 198,387,655
pounds, as compared to 200,060,150, a drop of 1,672,-
495, or 0.84 per cent.

Following are the comparative figures:

1st 8 Mos. Increase or Decrease

Product Cal. Yr. 1941 Quantity Per Cent.

Total All Classes:

United States 3,641,356,291 + 202,309,802 5 88

Philippine Islands ... 118,961,927 — 22,651,607 16.00

Grand Total 3,760,318,218 + 179,658,195 5^02

Puerto Rico (a)

Little Cigars:

All United States ... 95,931,813 + 13,255,311 15.84

Cigarettes:

United States 134,671,385,330 + 13,508,583,411 11 15

Phihppme Islands... 131,700 — 61,870

^ Total 134,671,517,030 + 13,508,521,541 11.15

Puerto Rico (a)

Large Cigarettes:

United States 1,038,434 — 102,359 8.97

Philippine Islands . . . 6,800 + 3,525

^Total 1,045,234 — 98,834 8.64

Puerto Rico (a)

Snuff (lbs.): ~~

All United States ... 26,341,433 + 1,007,235 3.98

Tobacco (Chewing and
Smoking) lbs.:

United States 198,387,655 — 1,672,495 0 84

Phihppine Islands ... ^

Total 198,387,655 - 1,672,495 ~a84

Source: Compiled from comparative data of tax-paid products re-
leased monthly by Internal Revenue Bureau.

(a) Omitted due to unavailability at this time of the August 1941
Puerto Rican data. ' '

5

NATO Convention to Break All Records

LANS for the 10th Anniversary Convention of
the National Association of Tobacco Distrib-
utors, to be lield January 13, 14, 15, 16 and
17, 1942, at the Pahner House, Chicago, are
already well advanced. It is confidently predicted that
the forthcoming event, which will mark an important
milestone in the progress of the association, will break
all previous records for attendance and industry-wide
participation. Edward Grauer, president of the Met-
-.^^ — *^v»*xx ^xjKJciK.^%j v/Ompciii}^, xNtJw luiK, aiiu aiso pres-
ident of the N. A. T. D., will serve as general chair-
man of the 1942 convention, and Joseph Kolodny, N.
A. T. D. executive secretary, has again assumed the
post of executive director, aided by H. B. Patrey, who
is serving as assistant executive director and manager
of exhibits. J. Renz Edwards, of the F. S. Edwards
Tobacco Company, Kansas City, Kans., is convention
treasurer.

The convention executive committee embraces the
following prominent distributors : Honorary chairmen •
Edward W. Harris, Hamilton, Harris Companv, In-
dianapolis, Indiana; Allan C. Davis, F. A. Davis &
Sons, Baltimore, Maryland; Joseph P. Manning, J. P.
Manning Company, Boston, Mass. ; Jonathan Vipond,
Scranton Tobacco Company, Scranton, Pa.

Vice-chairmen: Lloyd K. Black, Goldsmit, Black,
Inc., Pittsburgh, Pa.; Paul Brogan, Yahn & McDon-
nell Cigars, Philadelphia, Pa. ; R. O. Downie, The Sam-
elson Co., Inc., Memphis, Tenn. ; Nelson Eberbach, A
B. Cunningham Co., Philadelphia, Pa. ; Louis Ehrlich,
Rothenberg & Schloss Cigar Co., Kansas City, Mo •
Arnold Glaser, Glaser Bros., San Francisco, Calif •
John Lougran, D. Loughran Co., Inc., Washington,'
D. C. ; John R. Moser, Hemenway & Moser Co., Salt
Lake City, Utah; Samuel Wasserman, B. Wasserman
Co., New York, N. Y.; Eli Witt, Eli Witt (^igar & To-
bacco Co., Tampa, Fla.; Charles F. Becker, Chas F
Becker Cigar Co., Detroit, Michigan ; Carl B. Leiders-
dort, Lewis-Leidersdorf Co., Milwaukee, Wis. ; Moses
Packer, Packer Bros., New York, N. Y.

Directors' convention board: Sam N. Grossman,
Chicago Tobacco Co., Chicago, 111.; Claude Harrison,
Ouachita Cigar & Tobacco Co., Monroe, La.; Clarence
D. Hunter, Jos. P. Manning Co., Boston, Mass.; Alex
Schwartz, Keilson Cigar Co., Cincinnati, Ohio; R D
Burnett, II, R. D. Burnett Cigar Co., Birnn-ngham,'
Ala.; James E. Dearstyne, Dearstyne Bios. Tob Co
Albany N.Y.; David Gross, C. J. Donovan-Haas
Corp Buffalo, N. Y.; Henry Gunst, Cliff Weil Cigar
Co Richmond Va.; Emil Harms, Peter Hauptmann
Tobacco Co., St. Louis, Mo.; J. F. Jarboe, E. B. Crab-
tree Co., Minneapolis, Minn.; Alvin Linker, Linker
Ugar Co., Louisville, Ky. ; Sylvian Mirsky, B. Mirskv
& Son San Francisco, Calif. ; Jesse D. NeWman, Louis

Ti: ^''^''cP?''.^''^^^^ Montana; Arthur F. Schultz, Ar-
thur F. Schultz Co,. Erie Pa. ; Stanley Stacy, Cavalla
Tobacco Co., Milwaukee, Wis.

' ' The organization set-up for the convention is vir-
tually completed'', stated Secretary Kolodny ^^and
we are now proceeding rapidly with the formulation
ot a program of unique importance and scope. One
of the mam features at the 1941 convention was the
construction and operation of a model tobacco dis-
tributing house, which resulted in a general wave of
remodeling and reconstruction by wholesale tobacco
concerns m every section of the country. For the 1942

convention we will present outstanding features of
equal or greater significance to the industry. The na-
ture of these innovations will be announced when the
plans have been fully developed."

The N. A. T. D. directors selected Chicago for the
convention after a careful survey to determine the
choice of the majority. It will be the fourth consecu-
tive year the Illinois metropolis has been chosen.

^ The Young Executives Division of the N. A. T. D.,
v/liich iias substantially enlarged its membership in the
past six months, in spite of defections resulting from
the Selective Service Act, will play a stellar role at the
1942 conclave. President Charles Dearstyne requested
members to submit suggestions for the two-day pro-
gram on January 16th and 17th, and the enthusiastic
response has produced an abundance of excellent ideas
The N. A. T. D. Club for Women, of which Mrs.
Myron Benzion is president and Mrs. Fred H. Eisner
executive secretary, is also busy with preparations for
a program which will provide a continuous round of
entertainment and pleasure for the hundreds of ladies
who will attend. The club's enrollment has almost
reached the 500 mark.

1^ n"*^" !J^^?? ^^ ^^^ convention. Mayor Edward J.
Kelly, of Chicago, has issued an official proclamation
designating the week of January 12th to 17th as '^To-
bacco Week." The convention is scheduled for Jan-
uary 13th to 17th.

The Young Executives Division of the N. A. T. D.
has appointed its own convention board to assist in the
preparation of an outstanding program for its two
sessions. The board consists of the following: Robert
H. Dunn, America's Own Match Co., New York N Y •
Charles T Jones, America's Own Match Co., New
Jf : ^\ 7- i/ack Newman, Louis S. Cohn Co., Butte,
w "tV' ^^^l^^'^y" S^^ey^ Corey Candy Co., Beckley,
W. Va ; Charles S. Dearstyne, Dearstyne Bros. To-
bacco Ca, Schenectady, N. Y.; George Wise, Wm.
Demuth Co., New York, N. Y.; Albert G. Becker, F. S.
Edwards Tobacco Co., Kansas City, Kans.; David S.
^me Flaks, Inc., Denver, Colo.; Charles Deitsch, S. M.
Frank & Co., Inc., New York, N. Y. ; Jacob N. Lipmaii,
Fryes Cigar Co., Brockton, Mass.; Arthur G. Baer
I. Goldberg & Co Coatesville, Pa.; James R. Bryant
International Safety Razor Corp., Bloomfield, xN. J.
William Shapiro Keilson Cigar Co., Cincinnati, Ohio
Burdette E. Anderson, Emil Kellner & Co., Rockford
111. ; James J Moore T. J. Kennedy Tob. Co., Inc.
Glens Falls, N Y ; Walter F. Witt, Larus & Bro. Co.
Inc., Richmond, Va ; Monroe S. Lewis, I. Lewis Cigar
Mfg. Co Newark N. J.; William Leidersdorf, Lewis-
Leidersdorf Co., Milwaukee, Wis. ; Arthur Cassot, P.
Lorillard Co., Camden N. J.; Louis B. Mittler, Metro-
pohtan Tobacco Co., New York, N. Y. ; George J. Henn,
Phihp Morris & Co., Ltd., New York, N. Y. ; AViUiam B
Poinsett, III, Myers-Cox Co., Dubuque, Iowa; Julius
Blum, Natural Bloom Cigar Co., Passaic, N. J.; E F.
Requard, Neudecker Tobacco Co., Baltimore, Md.; J.
Leon Horkitz, New Jersey Tobacco Co., Atlantic City,

Pinf;;i J^ •''^- ^^. "^f'^'l."' P^""^^tate Cigar Corp.
Inc ^ew York, N. Y.; Arthur E. Nack, Rowe Manu-

tr^ T^; M Q \^?-^i"^-' ^J}^^^^^^ N. J.; Mort Schaff-
ner, David S. Schaffner Co., Chicago, 111.; George

(Continued on Page 13)

The Tobacco World

Cigars are the
0io8t pleasurable
and economical
form of smoking.

BAYUK BULLETIN

Devoted to the
best interests
of the men who
sell cigars.

first Issued 1929

OCTOBER, 19 U

PHULOFAX

(The Retailer's Friend)

SAYS

He's been picked up
two or three times
for "speeding," with
warning that "next
time, no license."

No license, no driv-
ing car — no driving
car, no job — and yet,

otherwise, he is above the average

salesman.

Dear Readers, Phil asks you,
"What's the cure for a speed-
demon?"

— o —

A jobber was talking to Phil about
one of his salesmen ... he summed
up in a few words the real qualifica-
tion of a real salesman — he said —
"He's a hard worker and uses his

Prepared twice a month

The Old Timer
Talks:

hy Frank Trufax

The Frank Trufax letters pub-
lished in hook form some years
ago, attracted so many requests
for copies that two editions were
exhausted. In view of the con-
tinued demand, the editors have
decided to republish the letters
in the Bayuk Bulletin.

To My Salesmen :

The old ''Question Box" has not
been cleaned out now for a couple
months so we better get busy. Won-
der what the problems are this time?
Well, let's see.

w

T^ mi

Don't tackle a task until you first
figure out just what the task is—

icertain what is to be done . . .
make sure that you know the real
Objective . . . scheme and study how
best to reach that Objective and
then with Enthusiasm and Deter-
mination, go to it!

He's a new man on the sales force
but Phil predicts he will make good.
Why? Because he asks a thousand
questions and makes a million notes.

K.O.C. writes — "I've got a man

on my sales force who tells me he

doesn't hke to sell . . . would rather

have a clerical job in the office.

, What should I do?"

' In justice to the man, either give
him a job in the office or let him try
to get that kind of a job elsewhere.
A man cannot do his best work if he
doesn't actually like— yes, love—
his work. Right?

DEALER: Hello, Mr. Stranger,
haven't seen you for a week or so.
A couple of your favorite cigars,
^ presume?

SMOKER: No, not a couple. I'U
^ke a box.

^EALER: Fine, I didn't know you
^ught cigars by the box!

j SMOKER: Yes, I do, and that's
I ^^y I haven't been in for a week or
j^ • • . I bought a box from a dealer
•^fto showed me the saving and con-
BoxM? of buying Cigars by the

aa:^

1. 'Tm doing in my job all I'm
supposed to do. Can the Boss
give me a raise?"

Ans. Chances are the Boss can but
won't until you do MORE than
merely what you are supposed
to do.

2. "My Boss says he pays me
proportionately to what I earn
for him and that he'd like to
double my pay. Why doesn't
he?"

Ans. The President of the U. S.; the
Treasurer of the U. S. ; the big-
gest and best business man in
the U. S. or little yours truly
cannot answer that question
but YOU can.

3. "I made a dandy sale to Bill
Smith the other day but when
I went to see him, I never
thought I'd put it over. What
do you think of that?"

Ans. Accidents will happen.

4. "I ' ve made up my mind that I
do not like the selling game.
What should I do?"

Ans.

7.

Ans.

It seems to me that I get into
a lot of arguments with my
customers. Usually I win the
argument but frequently that's
all. What's wrong?"

. Everything. You simply can't
win in an argument with a
customer.

''Some of my dealers tell me
that they like me all right but
don't like my house. Is there
an explanation?"

Yes. The dealer who says he
likes you and not your house
doesn't altogether like you be-
cause you are part of your
House.

, D.B.I.

/f^l«« tellA BAYUK CIGARS INC., Phila.
pnia — Makers of fine cigan nnce 1897,

Ans. Don't wait — beat the Boss to it!

5. 'T like to sell but trying to col-
lect the bills goes against my
grain. What am I going to do
about it?"

Ans. Easy to advise. Get a job
where you sell and deliver re-
ceipted invoices at the same
time.

8. "Is it true that good salesmen
are born and not made?"

Ans. A lot of bunk. Many a man
MADE himself a good sales-
man who didn't have two cents'
worth to say about his being
bom.

9. "Should a salesman know much
about his competitor's prod-
ucts?"

Ans. Not until he knows all about
his own.

10. "What is the biggest reason
why a dealer should buy a
salesman's product?"

Ans. Because the salesman has con-
vinced the dealer that he can
sell the salesman's product.

11. ''What is the difference be-
tween a Good Salesman and a
Good Collector?"

Ans. No difference because you can't
be the former unless you are
the latter.

12. "What is the biggest relative
weakness of the average sales-
man?"

Ans. He does what he thinks but he
doesn't think of what he does.

13 is the next number up but
we'll leave that one in the Question
Box to tease more in — send 'em
in, boys.

Yours, tohelpu,

Phillies

Bayuk Ribbon
Mapacuba

Charles Thomson
Prince Hamlet

BAYUK BRANDS BUILD BUSINESS

riGHT BIiNDING

Ifl'

A MESSAGE TO RETAILERS

By Eric Calamia

President, Retail Tobacco Dealers of America, Inc.

OU all know of the vigorous opposition of this
association to the excise tax of 2^ per 1000
matches in the Revenue Act of 1941, and need-
less to say we are disappointed in not having
been able to obtain the elimination of this 33H per cent.
tax on a gratis item. It seems that the objective of
this new tax measure — the national defense of our
country with which we are all in wholehearted accord,
and the hurried manner in which the Revenue Act of
1941 was adopted, really prevented more serious con-
sideration of our protest.

The new match tax of $1 per case of 2500 books
(50,000 matches) goes into effect on October 1, 1941.
It is important for you to know that no floor stock tax
will be levied on matches in retail stores. The precise
language of the act which provides for this exemption
is as follows : ' ' The tax shall not apply to matches in
retail stocks held at the place where intended to be sold
or disposed of.''

The prohibitive increased cost of paper book
matches after October 1, 1941, because of this new tax
makes it imperative to re-examine the universal trade
practice of giving away matches with all purchases of
tobacco products. Naturally, the thought has been
advanced that the retail tobacco dealers now ought not
to give matches away but should sell them. We would
be delighted to support such movement. But is that
possible with the present-day competition from sources
outside of the retail tobacconists who are not concerned
with making a profit on tobacco products but merely
carry them as '* loss-leaders'' or for customer conven-
ience and who, therefore, would be reluctant to give up
the practice of gratis matches ? The soundings we have
made thus far indicate almost insurmountable difficul-
ties in an attempt to change the established custom of
giving matches gratis. What is your opinion? Cer-
tainly a great deal more matches could be sold if prom-
inently displayed.

Another suggestion which has been advanced and
which has received favorable comment is that the re-
tailers demand from the wholesalers and use paper
book matches with only ten matches in the book instead
of the present twenty. The size of the book would
remain the same, but instead of having two tiers of
matches of ten each, it would have only one tier of ten.
Naturally the use of such book matches would result in
a considerable saving in tax and manufacturer costs.
What do you think about this suggestion ? Could such
books of ten matches be used with the sale of all tobacco
products or limited only to cigars and smoking tobaccos
because, as some believe, the cigarette consumer will
demand twenty lights for the twenty cigarettes in a
package ?

Do give this matter your serious consideration and
let us have your views as soon as possible; they are
important for the welfare of our trade.

R. J. REYNOLDS RENEWS

The R. J. Reynolds Tobacco Company, Winston
Salem, N. C, has renewed for another year **The Grand
Ole Opry,'' heard Saturday evenings over forty-four
NBC Red Network stations. The contract is effective
as of October 11th, at the expiration of the present one.
William Esty & Co., Inc., is the agency.
8

PHILLIES EXTRA SIZE

[|AYUK CIGARS, INC., has announced a new
size Phillies, which is now being introduced
as a companion cigar to the Phillies Perfecto.
This new cigar, attractively packaged, will be
known as Phillies Extra-Size and will retail at 10 cents,
three for 25 cents. In commenting on the new Phillies
Extra-Size, A. Jos. Newman, president of Bayuk
Cigars Inc., said: ''For some time we have had re-
peated requests, not only from consumers, but from
dealers and distributors, urging us to bring out a

the fact that there should be no change from the blend,
quality of tobacco and workmanship of the Phillies
Perfecto — that it should be exactly the same cigar,
except larger.

''The Phillies Extra-Size is Bayuk 's answer to
this widespread demand. It is guaranteed identical
with the famous Phillies Perfecto— the only difference
being it provides an even longer smoke.

"Bayuk is confident that the PhilHes Extra-Size
will meet with a waiting and active demand on the
part of smokers, and will be welcomed by distributors
and dealers because it offers a quality cigar, enjoying
wide acceptance, which can be retailed at three for
25 cents and, at the same time, return an adequate
profit.

"The sale of Phillies Extra-Size will be limited
to definite territories until production can be increased
to cover the entire country. Bayuk will follow its
usual plan of aggressive promotion through merchan-
dising and advertising."

NO SHORTAGE OF CIGARETTE PAPER

There is no shortage of cigarette paper in the
United States, present or prospective, and the armed
forces as well as the civilian population need have no
fear that the supply of ' ' smokes ' ' will fail for lack of
paper, according to an announcement by the Depart-
ment of Commerce.

Cigarette paper is now being manufactured in this
country in large volume from domestically grown flax
straw. Prior to the outbreak of the war cigarette
paper was manufactured almost exclusively from linen
fiber and large quantities of linen rags were imported
from France, as well as a large amount of French-
produced cigarette paper.

The leading manufacture of cigarette paper from
flax straw is understood to be using a product grown in
California, known as Punjab flax, which originated in
India. However, experts at the Bureau of Standards
say that ordinary seed flax straw, grown in large quan-
tities in Minnesota and a few other States, can be used
with satisfactory results.

One New England manufacturer of cigarette paper
IS said to have carried on successful experiments with
flax straw a decade ago, but its use for this purpose
did not become general until French supplies of linen
fiber, linen rags and paper were no longer available.

A new paper plant established in North Carolina
by an American citizen who had a financial interest in
French plants and was the principal importer of
French cigarette paper before the outbreak of the war
IS understood to have the largest capacity in the United
btates. Additional machinery now being installed will
provide a very considerable volume of cigarette paper
for export to meet the increasing demand from abroad.

The Tobacco World

BURLEY MARKET REFERENDUM

REFERENDUM will be held October 2
through October 4 for 27 Burley tobacco
markets in Kentucky, Tennessee, North Caro-
lina, Indiana, and Missouri, to determine
whether these markets shall be designated for free and
mandatory inspection of all tobacco passing over the
auction sales floor, the Department of Agriculture's
Marketing Service announced. The referendum will
cover these markets: Kentucky: Bloomfield, Camp
Taylor, Carrollton, Covington, Glasgow, Greensburg,
Harrodsburg, Hopkinsville, Tjexington, Louisville,
Owensboro, and Richmond; Tennessee: Carthage^
Fayetteville, FrankHn, Gallatin, Greeneville, Harts-
ville, Johnson City, Morristown, New Tazewell, and
Rogersville; North Carolina: Asheville and Boone;
Indiana: Madison and New Albany; and Weston in
Missouri.

Sixteen Burley markets already are designated in
Kentucky, Tennessee, Ohio, Virginia, and West Vir-
ginia.

If two-thirds of the growers voting in this refer-
endum approve tobacco inspection, tobacco sold on all
Burley markets in the United States will be graded at
no cost to the grower. Official Government grades
were used as a basis for making Government loans on
the 1940 crop of Burley, and will be used as a basis for
making loans on the 1941 crop.

Under the Tobacco Inspection Act, all growers
who sold at auction on these markets last year, and
who have not previously voted in a Burley tobacco
referendum, are eligible to vote. Ballots will be
mailed to growers who patronized these markets last
season insofar as their names and addresses are
known. Growers who do not receive ballots by mail
may get them from their county agent or from the
office of the county agricultural conservation associa-
tion.

Growers who patronize markets on which the in-
spection service is conducted have access to a daily
market report showing average prices by grade. With
grades plainly indicated on each lot and price reports
for the previous day's sale on each grade, growers
have a reliable guide for use in accepting or rejecting
bids offered. This inspection and market news service
is free to growers.

Producers ' sales on the Georgia and Florida flue-
cured tobacco markets this season amounted to around
62 million pounds at an average of $20.45. This is a
decrease in poundage from last season of about 25 mil-
lion pounds but an increase in the general average of
$4.78 per hundred.

The United States Department of Agriculture re-
ports that this increased general average was due to
the growers receiving higher average prices for most
grades of tobacco. The increases over last season

^?n?fn'^/''T *^-^2 l^'l ^^^ ^^^^^ ^"^^^ty grades up to
^10.00 tor those of better quality. A few green grades

and nondescript sold slightly below last year's levels
Drought conditions throughout the Georgia-Florida
belt during the early part of the growing season re-
sulted in the crop being more thin bodied than last
year. All cigarette tobacco was in especially good de-
mand and the domestic manufacturers bought heavily
One outstanding feature of the market was the
way the grade prices held up throughout the season
Cutters sold at the highest prices of the season durins^
the final week and other grades held firm at around the
opening week's levels. This was in contrast to former

October. j<)4i

LOm LLARD'S POPULAR L g A D E R S

Something NEW

hos been added!

It's the new Old Gold-enriched
with a rare imported tobacco—
so now it's better than ever!
Get more pleasure from your
Old Gold now that something
new has been added

3t( NEW— A prizMl impeitMl tobacco, from Hi*
oattom Moditorranoan— a tobacco who** small
aromatic loavot impart n«w lit* and zott to tho
fomout Old Gold blondl So •yry moment you lyMmf
wUh Old GoU wiU bo ovM moro o/ootant than bo/w«.

G£xriKa/uiyG<ym/uini^

Amofko'i old«tr tobocco marchonft— Edabliiliod 1740

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BETUN, AROMATIZER, BOX FLAVORS. PASTE SWEETENERS

FRIES & BRO., 92 Reade Street. New York

J|

CIGAR BOXES

Tel. Algonquin 4-9532

flS^^lco

Established 1875

The TOBACCO WORLD

is a good advertising medium for all types of
tobacco products and smokers' requisites.

NITUIUll THEV'RE MILIER

1

MEAN MORE PROFIT

PLEASANT AND MELLOW
IN AROMA AND FLAVOR
IN EVERY PRICE RANGE

PHILIPPINE TOBACCO AGENCY

2362 Massachusetts Ave., N. W., Washington, D. C.

years when sharp price declines for all grades oc-
curred near the end of the marketing period.

The markets opened on August 5th with sales
fairly heavy in volume, but all warehouse floors were
not entirely filled as in former years due to the lateness
of the crop. The first market closed for the season on
August 20th and final sales were held by nearly all of
the rest on the 21st and 22d. The growers were gener-
ally well pleased with the prices and rejections were
negligible throughout the season.

it

BLONDIE'^ WILL CONTINUE

R. J. Reynolds Tobacco Company has renewed its
contract with Columbia Broadcasting System for
*'Blondie/' weekly dramatic series starring Penny
Singleton and Arthur Lake. The program has run on
CBS, under Reynolds sponsorship, more than two
years.

'^Blondie'^ advertises Camel cigarettes and Prince
Albert smoking tobacco, and originates in the studios
of CBS station KNX, Hollywood.

With the report of the renewal came word that R.
J. Reynolds is preparing to resume its other CBS pro-
gram, *^A1 Pearce and His Gang,^' on Friday, October
3, after a three-month Summer vacation. The Pearce
program was renewed last Spring, and its place was
taken for the summer by Ilka Chase's ''Penthouse
Party. ' '

Both R. J. Reynolds ' accounts are handled by Wil-
liam Esty and Company.

10

BOLIVIA'S TOBACCO HARVEST

HE 1941 tobacco harvest in Bolivia was badly
affected by adverse weather conditions and
will probably be below average in quality and
quantity, according to information available in
the Office of Foreign Agricultural Relations. It is esti-
mated that Bolivia has an average crop of about 5.5
million pounds, but the tobacco-growing industry of
the country is not organized and no accurate statistics
concerning it are collected. Tobacco is grown as a
supplementary crop on small plots of land in the De-

On the whole, the quality of Bolivian tobacco,
especially that grown in the Department of Chu-
quisaca, is considered good, but the methods of curing
are apparently unsatisfactory, and by the time the
product reaches the factories it is probably no better
than second or third grade. Most of the Bolivian crop,
which is a dark, sun-cured, cigar-type, is manufactured
into cigarettes, although there is some small produc-
tion of chewing tobacco and snutf.

Leaf prices have increased during the past 2 years
from about 160-200 to 280-320 bolivianos per quintal
(17-21 to 30-34 cents per pound based upon the free
rate of exchange). Despite the increase in leaf costs,
however, cigarettes still sell at reasonable prices— the
better qualities ranging from 0.20 boliviano (4.7 cents)
per package of 10 to 1 boliviano (23.7 cents) per pack-
age of 14. American-type cigarettes (manufactured
locally) and imported American cigarettes are much
higher.

The annual output of cigarettes in Bolivia made
from Bolivian tobacco is approximately 504 million.
In addition to this production, it is estimated that
about 100,000 pounds of prepared (cut) tobacco are
imported from the United States annually for the man-
ufacture of American-type cigarettes. American-style
cigarettes are very popular in Bolivia and their output
increased rapidly until import restrictions were placed
on foreign tobaccos in May, 1940. Under terms of a
decree issued about that time, the imports of cigarettes,
cut tobacco, and several other tobacco products are
permitted only by special permission of the Minister
ot J^mance, and the exchange for payment must be ob-
tained through the central or commercial banks.

Small quantities of cigarettes were also imported
prior to the restrictions. More than 90 per cent of
these imports came from the United States, but the
trade has remained unimportant owing to the hi^h
prices placed upon imported brands.

POSSIBILITIES OF BY-PRODUCTS

The grave problems of downward readjustment of
dark tobacco production have for some years main-
tained interest in the possibility of increased by-
product use. These types are particularly suitable as
a source for various nicotine compounds. The current
increased use of various compounds to ^'fortify" or
enrich bread have included the use of nicotinic acid.
It has been hoped that this development may make a
market for sizable quantities of the lowest priced leaf.
Ihe minimum requirement before flour can be consid-
ered enriched" with respect to nicotinic acid will be
6 milligrams per pound of flour. This is at the rate of
one^pound of nicotinic acid for about 75,000 pounds of

The Tobacco World

Mr. Dealer:

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plain
ends. Save these valuable coupons for cash or
one of the seventy luxury premiums.

Brown ir JVilUamson Tobacco Corporation

UNION MAOI

TUNI IN "College Humor"- every
Tuesday night, coast-to-coast
NBC Red network.

^Aor--^'*-'*'-^-'

i^^'^^^**** **^<

POWm TOOL SET

1375 coupons. Ask the B&W sales
man Tor a supply of the new full coL
catalogs showing all the premiums

EXPECT BIGGER CROP IN INDIA

T is estimated that between 100,000 and 110,000
acres will be planted to flue-cured tobacco in
India this fall for harvest in the spring of
1942, according to information available in the
Office of Foreign Agricultural Relations. This pro-
spective acreage represents a considerable reduction
from the 1941 area when 123,300 acres were harvested,
but the 1942 output under normal weather conditions
should be somewhat greater than this year's crop,
which was reduced much below early expectations by
advese weather conditions.

The greatest reduction in the 1942 area will be in
the Madras coast district, where it has become neces-
sary to curb the development of ^'tokra,'' a parasitic
weed attaching itself to the root of the growing plant
It can be eradicated only by pulling it out ; or in ex-
treme cases, by taking the land out of production for
awhile.

The 1941 harvest of about 49.4 million pounds was
reported to have been the lowest outturn in several
years. On the Madras coast approximately 120,000
acres produced only 48 million pounds instead of 70
million, which would have been a reasonable expecta-
tion under normal weather conditions. Production in
Mysore State was but little better, amounting to only
about 1 million pounds from 2500 acres.

The outstanding feature of the 1941 harvest was
tlie increase in flue-cured area on the Madras East
Coast. This district, formerly called the Guntur area
has now grown so large that -Guntur- is a misnomer!
New district^s have been opened up north to Tuni, south
to 20 miles beyond Ondole, and inland across the bor-
der into Hyderabad State. It is estimated that tlie
maximum tobacco territory capable of development
P. f "?-f J'^^ production in the entire Madras East
t-^oast district may eventually reach 150,000 acres, and
it turther expansion is made in this type other parts
of India must be opened up. ^

ITniftlpl''*-''' ^^^^^^^{^i^ection is being made in the
United Provinces at Jhansi where the Government has
appropnated money for a 5-year research scheme to
Tl'TJ'f ^^l^} ^^'' production of flue-cured tobacco,
sni^ f I' ^^^.^^-^/f^P^rtion of the United Provinces is
AW%nn''''*''\*'^ the cultivation of cigarette tobacco.
About 300 acres have been planted on tlie experimental
farm near Jhansi, and demonstrations have been made

^^7^!^^ t^:'' ^^- ^' ^-^"^-^-^^' the

Ocfol

^cr, 1^41

MARKETING SEASON OPENS

(Concluded from last month)
The indicated 1941 crop as of July 1 is 33,235,000
pounds, which would be an increase of 1,315,000 pounds
over 1940. There has been some increase in acreage
from 38,000 acres last year to 39,100 acres this year'
An indicated yield of 850 pounds per acre compares
with 840 pounds in 1940, and is the highest since the
record yield of 875 pounds in 1920. The crop condition
is considered good, and growth has been above normal.
Because of an anticipated increase in stocks as of
January 1, 1942, the supply next year probably will be
somewhat larger than at the beginning of this year
btocks have increased since the outbreak of the war as
a result of diminishing export demand and the virtual
absence of significant foreign buying during the last
\2 months Iso change in the export situation is ex-
pected in the near future. For the first five months of
this year exports totaled 819,000 pounds, as compared

iQQQ ^'^^}'?^i ^^^""P^^ "' 1^4^ ^""^ 2,009,000 pounds in
in., statistics of exports by countries since March,
1941, are not available.

An inactive export market offset by an improved
domestic demand has characterized this year's sales.
Ihe continued increases in cigarette withdrawals over
last year s high level are a contributory factor, since
about two-thirds of the Maryland crop is generally
used m cigarettes. In trade circles manufacturers are
said to be experimenting with new uses for Maryland
to take advantage of its burning qualities and the ab-
sence of a marked aroma and flavor of its own

In line with marketing quotas approved by grow-
ers last November, the acreage planted to fire-cured
and dark air-cured (Types 35 and 36 onlv) tobaccos
has decreased sharply. The consequent decline in pro
duction IS augmented by present anticipations of

down ^^^^^"^^ sun-cured (Type 37) are likewise

As of July 1, fire-cured production is expected to

61 per cent, from the crop last vear of 103 481000
pounds. This would be the smallest crop of S

&T The'" W ""n r '^^".'^^ ^^^^^^« ^-- be-
,wn • ;r-^b/^^.P ^.ui-tailment in production will help

£' w t^l/" b "T"^ ^''-'''''^ ^^Wly into better re"^
lation witli shrinking export outlets for these tvpes

Jn"f or' ^ ^''''''' "^ readjustment that has be^n going
on for many years, the necessitv for which has been
particularly apparent since the outbreak of the war

1/

f

America Steps It Up
on the Home Front

— working hard, doing a mighty job, and
relaxing once in awhile for fresh energy.
When it comes to relaxation, there's noth-
ing like the enjoyment El Producto can give.

ELPmicro

Jorreal enjoyment

STATEMENT OF THE OWNERSHIP, MANAGEMENT, CIR-
CULATION, ETC, REQUIRED BY THE ACTS OF CON-
GRESS OF AUGUST 24, 1912, AND MARCH 3, 1933.

Of THE TOBACCO WORLD, Published Monthly at Philadelphia. Penna.. for
«* * r T> , October, 1941.

Mate of Pennsylvania, )

\ ss.
County of Philadelphia, S

Before me, a Notary Public in and for the State and County aforesaid, per-
sonally appeared B. S. Phillips, who, having been duly sworn according to

IfrT^'DT ^°^^* J* u *V^ }^^^ ^^^ '8 *^^ business manager of THE TOBACCO
WOK1.D, and that the following is, to the best of her knowledge and belief, a
true statement of the ownership, management (and if a daily paper, the circula-
tion), etc., of the aforesaid publication for the date shown in the above caption,
required by the Act of August 24, 1912, embodied in Section 411, Postal Laws and
Kegulations, printed on the reverse of this form, to wit:

1. That the names and addresses of publisher, editor, managing editor, and
business manager are:

Publisher— The Tobacco World Corporation, 236 Chestnut Street, Philadel-
phia, Pa.

Editon-Hobart B. Hankins, 236 Chestnut Street, Philadelphia, Pa.

Managing Editor— None.

Business Manager-B S. Phillips, 236 Chestnut Street, Philadelphia, Pa.
Z. Ihat the owner is: (If owned by a corporation, its name and address must
be stated and also immediately thereunder the 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
be given. If owned by a firm, company, or other unincorporated concern, its name
and address, as well as those of each individual member, must be given )

it iPn ^ ^°*''** f ^'■P^'"**'""' 236 Chestnut Street, Philadelphia, Pa.
Hobart B. Hankins, 236 Chestnut Street, Philadelphia, Pa.
3. That the known bondholders, mortgagees, and other security holders ownina

?r*, ijr^^TfP^l" ''*'"' ""■ '"°''* ""^ total amount of bonds, mortgages or other securi-
ties arc: (If there are none, so state.)

None.

hnlrtrl^oii «i*°»PY*S'*P'''/'*''' abovc, 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 books of the company but also, in case*
where the stockholder or security holder appears upon the books of the company
as trustee or in any other fiduciary relation, the name of the person or coraoTatioJ
for whom such trustee is acting, is given; also that the said two para^a?hs cin
tain statements embracing affiant's full knowledge and belief as to Se circiim.
stances and conditions under which stockholders Ind securi y holders who do n^
appear upon the books of the company as trustees, hold stock and secSties in i
capacity other than that of a bona fide owner; and this affianrhas no reason to
believe tha any other person association, or corporation has any interest dTrect
°' "\^m^\ \l **'*' '*'** stock bonds, or. other securities than as so staged by him
AiJ-J^"^ **u ^''T^t ""'"b" of copies of each issue of this publication sold or
distributed, through the mails or otherwise, to paid subscribers dur ng the sS

months preceding the date shown above is ... rThi* JnfnrmoVjL •

required from daily publications only.) ^^'"* information is

HOBART B. HANKINS,

Sworn to and subscribed before me this Editor.

24th day of September, 1941.

EDWARD A. WOOLSLAGER,
(Seal) Notary Public.

My commission expires January 18, 1943.

12

CANADIAN PRODUCTION UP

HE combined 1941 production of all types of
tobacco in Canada was officially estimated on
August 30 at 67.3 million pounds, as compared
with the 1940 harvest of 60.4 million and the
record 1939 crop of 107.7 million pounds. Harvest was
under way in all districts, and unless frost, storms, or
other disasters occur before the crop is all removed
from the fields, the final 1941 output is not expected to
vary materially from the official estimate, according to
Clifford C. Taylor, American agricultural attache at
Ottawa.

The acreage of flue-cured tobacco was slightly in-
creased from last yearns harvested area in each of the
three producing Provinces, and the August 30 esti-
mate places the crop at 53.6 million pounds as com-
pared with 39.1 million in 1940, and 79.7 million, the
record 1939 crop. Quality of first curings was rather
poor and variable, and the entire crop is expected to
average only fair.

Burley tobacco is also expected to be only fair in
quality. Rainy weather during the latter part of
August interfered with harvesting and curing.

The acreage and production of types other than
flue-cured were below those of last year and much
below those of 1939. Yields per acre were lowered by
the (Irought and heat in Quebec during June and July,
and in Ontario during late July and early August. Hail
in Ontario also destroyed about a million pounds.

REYNOLDS PROMOTES DUNN

Donald G. Dunn, sales promotion and advertising
manager of the Reynolds Metals Company, has been
appointed assistant to J. Louis Reynold^,* vice-presi-
dent and general sales manager. Mr. Dunn was with
the Standard Oil Company in Cliicago from 1930 to
1936. ^ He joined the Reynolds company in July of
1938, in charge of direct mail sales promotion, becom-
ing advertising manager early in 1939. He is a gradu-
ate of Northwestern ITniversity where he took his B. S.
in Journalism in 1930, and the Harvard Graduate
School of Business Administration (M. B. A.) in 1938.

LORILLARD'S NEW PROGRAM

P. Lorillard Company has signed for participation
m Arthur Godfrey's 6:35-7:00 A. M. period over
WABC six mornings a week, starting Monday, Septem-
ber 15. The P. Lorillard Company at present sponsors
''Don't Be Personal," an unusual quiz series, on the
Columbia Pacific Network in the interest of Beech-Nut
cigarettes. The new AYABC program advertises Old
Gold Cigarettes.

PHILIP MORRIS RENEWS PUTNAM

PhiHp Morris & Co. have renewed for another thir-
teen weeks the news broadcasts by George Putnam,
aired Thursday, Friday and Saturday nights over
WEAF. The program is in behalf of Dunhill ciga-
rettes. Blow Company, Inc., 9 Rockefeller Plaza, is the
agency.

B. & W. TAKE RENFRO VALLEY

The Brown & Williamson Tobacco Corporation
began sponsorship of the Renfro Valley Barn Dance on
fourteen NBC Blue Network stations on September

}t^u' TJ^^ ^^^^^ ^^^"^' P^^M'^'^^n^ is aired from Renfro
Valley, Ky., every Saturday night. The contract is for
titty-two weeks and is handled by Russell M. Seeds, Inc.

The Tobacco World

HEAP FINE RADIO SHOW

MONDAY NI6HTS. COIUMBIA BROADCASTINfi SYSTEM

MODEL TOBACCO Presents

one of radio's outstanding hits

NiODlVS "GAY NINETIES REVUE''

Starring BEATRICE KAY, Soubrette
JOE HOWARD, Master of Ceremonies

You and all your customers will like it

DOMINICAN HARVEST SMALLER

HE Dominican tobacco harvest of 1941 is re-
ported to have been much smaller than that of
of 1940, owing to the fact that producers have
become discouraged with low prices, according
to information received in the Office of Foreign Agri-
cultural Relations. The crop was reduced also by
adverse weather conditions. No definite figures are
available for tobacco production in the Dominican Re-
public, but the 1940 crop was estimated at about 17 mil-
lion pounds as compared with an average production
of from 20 to 25 milUon pounds. Leaf exports average
about 15 million pounds annually and domestic con-
sumption amounts to 5 or 6 million pounds.

Stocks from the 1940 crop were reported in July
at approximately 615 million pounds, almost all of
which had been contracted for by Spanish firms. It is
estimated that the 1941 crop will be easily disposed of
in the same manner.

Growers ' prices have been low in the Republic for
many years. Compared with the export price, there is
a wide spread. Recent prices paid the producer have
not averaged over $2.50 per 100-pound bale, while the
export price has been about $7.75 f. o. b. So far there
has been no difficulty in arranging for payment on the
basis of f . o. b. letters of credit at port of shipment.

If the internal conditions of Spain (the principal
buyer at present) enable that country to continue mak-
ing purchases of Dominican tobacco, the future of the
mdustry would seem to be more favorable. Before the
war approximately 97 per cent, of the Dominican leaf
exports were sold to Europe— principally to Germany
and The Netherlands. Tobacco in the Dominican Re-
public IS the small farmer's cash crop. It is grown by
more planters on small areas than anv of the leading
export products.

NATD CONVENTION PLANS

{Continued from Page 6)

Schlegel III, Schlegel Lithographing Corp., New York,

•ii U^^^''?l^ ^' ^^^^^^^ Arthur F. Schultz Co., Mead-
ville. Pa.; Albert L. Kaufman, Arthur F. Schultz Co.,

n\,^^' ^^^'vi^i H. Schwartz, Schwartz Bros. Cigar
t;0., Finladelphia, Pa. ; Herbert Schwarz, Max Schwarz
Cigar Co ^ew York, N. Y.; David Vipond, Scranton
lobacco Co., Scranton, Pa.; Robert L. Stern, L. & H
btern. Inc., Brooklyn, N. Y. ; Sidney A. Tarrson, The

w"!!'. ^;^. ^^"^^^^' ^^^•' Joseph F. Cullman, III,
VVebster-Eisenlohr, Inc., New York, N. Y., and Virgil
M. Anderson, Reeves Wholesale Co., Boise, Idaho.

October, ig4i

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter
It's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 68 years
15 Washington St. Newark, N. J.

J

EstablUhcd 1886

"BEST OF THE BEST"

Manufactured

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Key West, Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-De sign-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit, Mich.

Hellaxn, I'a.

Hanover, Pa.

Philadelphia, Pa.

Wheeling, VV. V«.

J

13

i

Tobacco Merchants' Association
Registration Bureau,

341 Madison Ave.
NEW YORK CITY

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A — An allowance of $2 will he 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.

TRANSFERRED REGISTRATIONS

PRIORITY:— 29,317 (U. S. Tobacco Journal). For cigars, ciga-
rettes, cheroots and tobacco. Registered September 8, 1904, by
American Litho. Co., New York, N. Y. Transferred to Dimmig
Cigar Co., East Greenville, Pa., and re-transferred to W. J. Nelf
& Co., Red Lion, Pa., on August 28, 1941.

AMERICAN EMPIRE:— 19,778 (Trade-Mark Record). For cigars,
cigarettes and tobacco. Registered September 22, 1898, by Price
& Spatz, Reading, Pa. Through mesne transfers acquired by
Arthur S. Ziegler & Co., Red Lion, Pa., and re-transferred to
Yocum Bros., Inc., Reading, Pa., on September 8, 1941.

Internal Revenue Collections for August

Source of Revenue 1941 1940

Cigars $ 1,203,064.95 $ 1,162,445.09

Cigarettes 57,776,208.71 54,859,649.97

S""ff 534,958.38 525,184.27

1 obacco, chewing and smoking 4,408,354.75 4,668,202.54

Cigarette papers and tubes 162,174.13 121,019.58

Leaf dealer penalties 331.38 22.09

♦Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based on

manufacturers' returns of production)

Month of June

_ , Increase or Decrease

Product 1941 Quantity Per Cent

P^"?, 4,228,775 -f 113.913 2.77

Twist 477,545 -\- 61,379 14.75

Fine-cut Chewing 440,677 + 73,781 20.11

Scrap Chewmg 3,910,412 + 723,089 22.69

Smoking 16,288,460 + 206,957 1.29

Total 25,345,869 + 1,179,119 4.88

Six Months Ending June 30

„ , ^ Increase or Decrease

Product 1941 Quantity Per Cent.

|^"P^, 24,618,875 + 569,853 2.37

Twist 2.722,639 + 11,330 0.42

Fine-cut Chewing 2,441,367 -f 235,508 10.68

Scrap Chewing 21,547,762 -f 963,198 4.68

^^okmg 98,273,063 + 150,162 0.15

'^Qtal 149,603,706 -f 1,930,051 1.31

*-r^nffP[°j"^**°," figures are in pounds, and are subject to revision
r" ven ^" annual report of the Commissioner of Internal

''PENTHOUSE PARTY" FOR CAMEL

• . ^' ' Pe^nthouse Party, ^ ' starring Ilka Chase, will make
Its debut over sixty-one stations of the NBC Blue Net-

T^^^n ^nTTi^r^""^^^^^ evening, October 8th, from 9:30
to 10:00 P. M, sponsored by the R. J. Reynolds Tobacco
Company, for Camel cigarettes. The program will
have a musical background and Miss Chase will have
guest stars for her broadcasts. The contract is for
fifty-two weeks, and William Esty & Co., Inc., is the
agency.

r4

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

,^

TESSE A. BLOCH, Wheeling, W. Va President

GEOK?4V mT'r%" ^^'''J^Jv ^^^^""^" ExecutVve Committee

UhjUKUfc- W. lilLL, New York, N. Y Vice-Prp«iH».«»

GEORGE H. HUMMEL, New York, N. Y V ce-Pres denJ

S. CLAY WILLIAMS. Winston-Sakm. N. C V ce-pJes den

JULIUS LICHTENSTEIN, New York N. Y .' .' V c^Pres dent

ASA LEMLEIN, New York. N. Y. Trilsurei

CHARLES DUSHKIND. New York N. Y, Counsel and ManagiAg Director

Headquarters. 341 Madison Ave., New York City

CIGAR INSTITUTE OF AMERICA

ALBERT H. GREGG

ALVARO M. GARCIA vire

D. EMIL KLEIN ^*^*^

SAMUEL BLUMBERG

B. M. NUSSBAUM '...■.■.■.■.*.*.■.■.■.■.■.■.■. '.'.Director of

President
President
Treasurer
Secretary
Publicity

DISTRIBUTORS, INC.

FRED W. WINTER Chairman of the Board

EDWARD GRAUER p®iiH^^*J

J. RENz EDWARDS .■::::.■;;.■; Trlfsurei

JOSEPH KOLODNY. 200 5th Ave., New York, N. Y. ....■..' ::.Ex;cutVve's^c?etary

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LASCHOW, 862 East Fifteenth St., Brooklyn. N. Y. .. President

R. L. McCORMICK. 52 Klein Ave., Trenton, N. J. ... F r^i'vJc^-Prls S

ALBERT^FREEMANSfT' f'l^'' 5^'*'"^"^^' ^v^' f.-xV^Secind Vic" Pr«ideSj
AL.atLl<l i'Kli.LMAN. 25 West Broadway, New York, N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA. INC.

ERIC CALAMIA, 233 Broadway, New York, N. Y President

CLIFFORD M. DAWSON .... Tref«™

MALCOLM FLEISHER il^fl"?

sEiGFRiED F. HARTMAN ^^^^^".^^^'.^^^^^^^■.^■.^^^■.■.^^■.^. Counsel

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA
INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA President

WALTER E. POPPER tIIVII^I

SAMUEL BLUMBERG ;:..: General Conns!?

Executive Committee-Alyaro M Garcia (Ex-officio), Thomas' CBreen, Harley W
Jefferson. D. Emil Klein, Walter E. Popper, Harry C. Carr, and Arthur A.

^C il Yr 3L TZ •

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion, Pa Prec.M«.,f

ARTHUR McGUIGAN, Red L on. Pa vi;; Pre=^!^5

RUSSELL S. STINE, Red Lion, Pa. . ?I^ri?f *

A. s. ZIEGLER, Red L:on, Pa.' :::::::::::::::::::::::::::::::::::::;;|^ii;^

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

ARMANDO RODRIGUEZ t>.. -^ *

FRANCISCO GONZALEZ :::;:; v;;;pr^^!H^"J

JOHN LEVY Vice-President

FRANCIS M. SACK ;.; Treasurer

INDEPENDENT RETAIL TOBACCONISTS'
ASSOCIATION

. Secretary

BERNARD SCHWARZ t> ., ^

BENJAMIN FRIEDMAN KVrVt"vi;;*? -^ !

EDWARD H. SNYDER c/'"j X?*=*"S''*'^?<|^"*

IRVING CHAPMAN : . .■.;.•.•.•.;.■.•.■.•. %Tr^ vi^r ?^'^^^"!

ARTHUR W. JONES Third Vice-President

JOE GROSSMAN .... financial Secretary

BERNARD BERNSTEIN,' 42 'Broadway ," 'New "Yo;!^; 'n.' "y." '.'.'.'.'.'.■.■.•.•.•.;•.*. *.Sc?eTa7y'

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA INC

VICTOR KORMAN o •, .

CHAS. B. KIRWIN .... President

LEO RIEDERS, 604 West 'iein'd'st'r'eet.' 'New' 'Y'o'r'k.''N:-'Y; ''.'.'.■/. V.V.:::Se^^^^^^

SPONSORS FOOTBALL BROADCASTS

The Congress Cigar Company sponsors play-by-
play accounts of eight outstanding midwestern foot-
ball games over WBBM, CBS station in Chicago. Tom
p ^t^'^Jo^a'^' ,?^™^i* ^'otre Dame star, calls the plays
tor WBBM hsteners, and the broadcasts advertise La
ralina cigars.

The series includes six Northwestern home games
and two other major contests, and runs on eight suc-
cessive Saturdays from October 4th to November 22d.
1 he games are: Kansas State, Wisconsin, and Michi-
gan m that order at Northwestern; Minnesota at Mich-
igan; Michig;an at Illinois; and then Indiana, Notre
Dame, and Ilhnois at Northwestern.

Harrington and WBBM made their gridiron
debut a week earlier with a sustaining broadcast from
the Arizona-Notre Dame game at South Bend Septem-
ber ZL I he account— which maintains WBBM's all-
around sports coverage— was set by Marschalk & Pratt,
Inc. '

The Tobacco World

HECpT>r

F?AR Y

o

NOV 5

'-:4r

^- S. Depart

N owrmm

1941

ESTABLISHED
1881

TOBACCO REVENUE COLLECTIONS
EXCEEDED $67,800,000 IN SEPT.

Statistics based on the month's sales of
revenue stamps, as reported in this issue,
show a substantial improvement in the
tobacco industry during September this
year as compared to September last year.

The increase is much more impressively
shown, however, by a comparison of the
dollar volume of Internal Revenue col-
lections covering cigars, cigarettes, snuff,
chewing and smoking tobacco, cigarette
papers and tubes, and leaf dealer pen-
alties.

The total for September this year was
more than $67,800,000.00, as compared
to $54,915,000.00 in the same month last
year, an increase of more than $12,885,-
000.00, or 23.5 per cent.

V

-•vright 1941, tiGCETT & Myers Tobacco Co.

HoBART B. Hankins — EdUoT

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 61

NOVEMBER, 1941

No. 11

ONSTRUCTIVE selling, as opposed to so-called
competitive selling* (which is high-hat for
''knocking'' the other fellow and his goods)
takes advantage of every minute of the pros-
pect's time that the salesman can get to supply him
with information and important material. The pros-
spect thus learns many things. He appreciates the
new information he receives. He respects you as a
salesman, because you have been constructive. He
respects your company, because you, its representa-
tive, contribute something of value. Every buyer
knows that every salesman has an axe to grind; that
the salesman wants to sell him something so that the
salesman can make some money. It 's just plain ornery
human nature that makes him react defensively. He
is not interested in your making money. He's inter-
ested in making money himself.

UPPOSE you average fifteen minutes on a call.
Can't you see that it is smarter to fill those
fifteen minutes with reasons for buying what
you have to sell, than it is to fill them with
reasons why the prospect should not buy, or continue
to buy, a competitor's product. If you do a good job
of selling your own products— a solid, constructive
job — you will accomplish what you might hope to ac-
complish by competitive selling, and then some. If,
however, you allow yourself to spend too much time
m criticizing competitive products, you may not have
sufficient time to sell your own, which is a business
tragedy. In fact, by dwelling too long on the other
fellow's wares, you are highlighting them in your cus-
tomer's mind. You are publicizing them, putting them
m the spotlight. Even though you think you are put-
ting them in an unfavorable light, you may not be.
You may end up by succeeding in doing nothing more
than spotlighting competitive products that have no
part in your job of selling your own.

0 ONE really likes a knocker. No one really
likes a gossip. No one really likes a destruc-
tive salesman. Roasting or knocking has a
^ way of finding its sponsor in the end, and
slapping him down with the boomerang of his own
statements. This is not to say that you can always
avoid competitive selHng. When it is forced upon you
by the prospect, then the responsibility is his. But in
niost sales a strict attention to the business at hand
ot selling your own product will pay the real divi-
dends. Under present serious national emergency con-
ditions, few will want to listen to you tell them how
lousy your competitors' products are. They will rec-
ognize that as wasting their time. And these days
prospects have no time to waste. Nothing can beat an
emergency to get us out of the ruts of habit. This is

not the time for monkeyshines, backbiting, spitework
and the socking of competitors. These are the days
to be constructive, to give something valuable in the
form of ideas and information on each call. If com-
petitors want to waste time knocking you, that is their
funeral. Don't be baited into following their error
of judgment. Stick to your own knitting— and SELL.

ROM Canada comes news of varied interest to
the tobacco industry and trade. There is a re-
port that the 1941 crop will be in excess of
what might be considered a normal Canadian
production of tobacco. The quality of the crop is re-
ported good, and it is estimated that the average yield
per acre will be considerably higher than the low yield
of last year. United States labor was imported into
Canada again this year, to be used in the tobacco har-
vest. The Department of Immigration issued permits
for 1300 tobacco primers and 1300 curers to enter the
country between July 18 and October 1. Most of the
recommendations for these permits originated with
the Secretary of the Flue-Cured Tobacco Marketing
Association of Ontario. These men were transported
by truck from Virginia, the CaroKnas, and Georgia, to
Detroit, and by other trucks from the Canadian border
to the tobacco farms. They were paid from $30 to
$40 per week and transportation expenses both ways.

T is reported from the American consulate in
Hamilton that a Turkish-born Greek chemist,
after four years of experimentation, has de-
veloped a strain of Turkish tobacco that can
be successfully grown in Western Ontario. While all
previous experiments with growing Turkish tobacco
m Canada have failed, it is claimed that the newly
developed Turkish type will produce more than a ton
ot high-grade tobacco from less than an acre of land
Ihe priming and curing process differs from that of
other Canadian tobaccos in that the leaves are primed
according to color and size and strung with needles
on iieavy strings. The leaves are air-cured first, then
p aced under glass, where the curing process is com-
pleted by degrees. The finished product is said to
compare favorably with Turkish-grown tobaccos

ONSUMPTION of tobacco in Canada continues
to increase slightly, and it was estimated that
the total disappearance of leaf during the year
f f 1 /^f%^ September 30, 1941, might exceed the
1QQQ \n ""n^ ''^'^^'?^ P^^^^^ officially estimated for
t-n- ^^^; Consumption of cigarettes, amounting to 6.6
bilhon for the first ten months of the fiscal year, Octo-
ber through July, was somewhat greater than that of
a year earlier.

All Tobacco Products Up In September

Increases General for 10 Months

Major U. S* Classifications Show Gains
in Sales of Revenue Stamps, the only
Minus Sign Being for Class B Cigars

NLY a hair-line from a perfect score, the sales
of revenue stamps for September showed size-

tion, and in the subdivision of the cigar classi-
fication, the gains stood for all except Class B, the
only minus sign in the purely domestic side of the
report. The figures are from the Supplement to the
Tobacco Barometer of the Tobacco Merchants Asso-
ciation of the U. S. The rises ranged from 2.64 per
cent, for chewing and smoking tobacco to 26 per cent,
for cigarettes, without counting large cigarettes, on
which the increase was nearly 400 per cent.

Cigars of all classes in the U. S. totaled 506,070,-
675, as compared to 475,725,260, an increase of 30,345,-
415, or 6.38 per cent. The Philippine Islands total
was 19,660,290, as compared to 18,145,746, a gain of
1,514,544, or 8.35 per cent. The Puerto Rico total was
84,350, as compared to 115,950, a drop of 31,600, or
27.25 per cent. Grand total was 525,815,315, as com-
pared to 493,986,956, an advance of 31,828,359, or 6.44
per cent.

Class A cigars in the U. S. totaled 442,576,165, as
compared to 418,242,680, an increase of 24,333,485, or
5.82 per cent. This class gain, as a result of a P. I.
increase and a P. R. loss, was raised to 25,866,100, or

Product September, 1941

Cigars :

Class A —

United States 442,576,165 +

Philippine Islands . . . 19,565,695 -f

Puerto Rico 52,000 —

Total 462,193,860 -|-

Class B —

United States 3,437,110 —

Philippine Islands . . . 27,525 —

Puerto Rico 9,000 —

Total 3,473,635 —

Class C —

United States 54,950,130 -|-

Philippine Islands . . . 31,660 —

Puerto Rico 23,350 —

Total 55,005,140 -f-

Class D—

United States 4,543,845 +

Philippine Islands ... 17,400 +

Puerto Rico

Total 4,561,245 +

Class E —

United States 563,425 -f-

Philippine Islands . . . 18,010 -f-

I'uerto Rico

Total 581,435 -f

Increase or Decrease
Quantity Per Cent.

24,333,485

1,536,365

3,750

5.82
8.52
6.73

25,866,100

5.93

643,160
4,325
1,200

15.76
13.58
11.76

648,685

15.74

5,926,176
35,386
26,650

12.09

• • • •

• • • •

5,864,140

11.93

553,071
5,000

13.86

• • • •

« • • •

558,071

13.94

175,843
12,890

45.37

• • • •

• • • •

188,733

48.06

5.93 per cent.

Class B cigars in the U. S. totaled 3,437,110, as

r>oinn«rpH fn 4- n«0 970 n rloplin^ O^* ^43 1^^ o»* ^^7fi

per cent. Losses were also registered for P. I. and
P. R. products, with a resultant total class loss of 648,-
685, or 15.74 per cent.

Class C cigars in the U. S. totaled 54,950,130, as
compared to 49,023,954, a rise of 5,926,176, or 12.09
per cent., which, as a result of P. I. and P. R. declines,
was reduced to 5,864,140, or 11.93 per cent.

Class D cigars in the U. S. totaled 4,543,845, as
compared to 3,990,774, a gain of 553,071, or 13.86 per
cent., which a P. I. gain increased to 558,071, or 13.94
per cent.

Class E cigars in the U. S. totaled 563,425, as
compared to 387,582, an increase of 175,843, or 45.37
per cent., which became a gain of 188,733, or 48.06 per
cent, as a result of a P. I. increase.

Cigarettes in the U. S. totaled 18,760,571,160, as
compared to 14,889,814,717, an advance of 3,870,756,-
443, or 26 per cent., a whopper of an increase.

As for the rest, little cigars gained 19.79 per cent.,
large cigarettes nearly 400, snuff 12.13 per cent., chew-
ing and smoking tobacco 2.64 per cent.

Following are the comparative figures : -

Product September, 1941

Total All Classes:

United States 506,070,675 -{-

Philippine Islands ... 19,660,290 -j-

Puerto Rico 84,350 —

Grand Total 525,815,315 -|-

Little Cigars:

All United States ... 13,077,400 4-

Cigarettes:

United States 18,760,571,160 +

Philippine Islands . . . 22,000 -f-

Puerto Rico 460,000 +

Total 18,761,053,160 +

Large Cigarettes:

United States 185,457 -{-

Philippine Islands ... —

Puerto Rico 16,400 —

Total 201,857 +

Snuff (lbs.):

All United States ... 3,194,316 -{-

Tobacco (Chewing and
Smoking) (lbs.:

United States 26,561,950 -\-

Philippine Islands ... 25 +

Total 26,561,975 + '

Increase or Decrease
Quantity Per Cent.

30,345,415

1,514,544

31,600

31,828,359

2,160,267

3,870,756,443
21,600
69.760

3,870,847,803

148,335

480

30,600

117,255

345,442

681,965

25

681,990

6.38

8.35

27.25

6.44

19.79

26.00

26.00

12.13

2.64

2.64

Source: Comparative data of September tax-paid products re-
leased by Internal Revenue Bureau.

The Tobacco World

Cigars, Little Cigars, Cigarettes, Snuff
and Large Cigarettes, Register Gains;
Chewing and Smoking Tobacco Decline

LUS signs dominate the report of sales of to-
bacco revenue stamps in the first nine months
Oi this year, according to the Supplement of
the Tobacco Barometer of the Tobacco Mer-
chants Association of the United States. For every
U. S. major classification except chewing and smok-
ing tobacco, gains were registered for the period.
These gains ranged from 3.9 per cent, for large ciga-
rettes to 15.24 per cent, for little cigars. While cigars
of all classes recorded only a 5.94 per cent, rise, the
gain for Class E was 21.75 per cent.

Cigars of all classes in the U. S. totaled 4,147,-
426,966, as compared to 3,914,771,749, an increase of
232,655,217, or 5.94 per cent. Philippine Islands cigars
totaled 138,622,217, as compared to 159,759,280, a drop
of 21,137,063, or 13.23 per cent. Puerto Rico cigars
totaled 422,525, as compared to 931,900, a decline of
509,365, or 54.66 per cent. Grand total was 4,286,471,-
718, as compared to 4,075,462,929, a rise of 211,008,789,
or 5.18 per cent.

Class A cigars in the U. S. totaled 3,720,607,130,
as compared to 3,532,475,285, a gain of 188,131,845, or
5.33 per cent. P. I. and P. R. losses reduced this to
166,899,535, or 4.52 per cent.

lst9Mos. Increase or Decrease

Product Cal. Yr. 1941 Quantity Per Cent.

Cigars :
Class A —

United States 3,720,607,130 + 188,131,845 5.33

Philippine Islands ... 138,097,515 — 20,935,195 13 16

Puerto Rico 220,535 — 297,115

Total 3,858,925,180 + 166,899,635 4.52

Class B —

United States 29,917,033 + 1,353,142 4 74

Philippine Islands ... 149,867 + 60,005

Puerto Rico 83,200 — 79,200 ..'.'.

Total 30,150,100 -h 1,333,947 4^63

Class C —

United States 366,747,966 -f 38,739,746 11.81

Phihppine Islands ... 290,315 -j- 79 078

Puerto Rico 118,500 — 133,'350 '.'.'.'.

Total 367,156,781 + 38,685,474 11.78

Class D —

United States 27,461,208 + 3,949,211 16.80

Philippine Islands ... 39,230 — 28 461

Puerto Rico 300 -}- '3OO

Total 27,500,738 + 3,921,050 16.63

Class E —

United States 2,693,629 -f- 481,273 21.75

Phihppine Islands . . . 45,290 — 312,490

Puerto Rico

Total 2,738,919 -f- 168,783 6.57

November, 1941

Class B cigars in the U. S. totaled 29,917,033, as
compared to 28,563,891, an increase of 1,353,142, or

T.t-i pfci tient., wmcii wtics itjuuceu lu ±yOOO,if'±t , or 4:.00

per cent, as a result of a P. I. gain and a P. R. loss.

Class C cigars in the U. S. totaled 366,947,966, as
compared to 328,008,220, a gain of 38,739,746, or 11.81
per cent. A P. I. gain and a P. R. loss combined to
reduce the class gain to 38,685,474, or 11.78 per cent.

Class D cigars in the U. S. totaled 27,461,208, as
compared to 23,511,997, an advance of 3,949,211, or
16.8 per cent., which a P. I. loss and a P. R. gain re-
duced to 3,921,050, or 16.63 per cent.

Class E cigars in the U. S. totaled 2,693,629, as
compared to 2,212,356, a rise of 481,273, or 21.75 per
cent., which, however, was reduced to a class gain of
168,783, or 6.57 per cent., by a P. R. loss.

Little cigars, all U. S., totaled 109,009,213, as
compared to 94,593,635, an increase of 14,415,578, or
15.24 per cent.

Cigarettes in the U. S. totaled 153,431,956,490, as
compared to 136,052,616,636, a gain of 17,379,339,854,
or 12.77 per cent.

Large cigarettes gained 3.9 per cent., snuff in-
creased 4.8 per cent., chewing and smoking tobacco
lost 0.44 per cent. The comparative figures follow:

1st 9Mos.

Product CaL Yr. 1941

Total All Classes:

United States 4,147,426,966

Philippine Islands ... 138,622,217

Puerto Rico 422,535

Grand Total 4,286,471,718

Little Cigars:

All United States ... 109,009,213

Cigarettes:

United States 153,431,956,490

Phihppine Islands ... 153,700

Puerto Rico 3,758,900

Total 153,435,869,090

Large Cigarettes:

United States 1,223,891

Phihppine Islands . . . 6,800

Puei to Rico 96 400

Total 1,327,091

Snuff (lbs.):

All United States ... 29,535,749

Tobacco (Chewing and
Smoking) (lbs.:

United States 224,949,605

Philippine Islands ... 25

Total 224,949,630

Increase or Decrease
Quantity Per Cent.

+ 232,655,217

— 21,137,063

— 509,365

5.94
13.23
54.66

+ 211,008,789

5.18

+ 14,415,578

15.24

+ 17,379,339,854
— 40,270
+ 1,317,520

12.77

• • • •

• • ■ •

+ 17,380,617,104

12.77

+ 45,976
4- 3,045
— 51,400

3.90

• • • •

• • • •

— 2,379

0.18

+ 1,352,677

4.89

— 990,530
+ 25

0.44

— 990,505

0.44

Conipiled from comparative data of tax-paid products released
monthly by Internal Revenue Bureau.

Merchandising Clinic at Convention

^'MEECHANDISING clinic,'' at which the
sales problems encountered daily by the to-
bacco wholesalers in the ordinary conduct of
^ their business, and particularly those problems

arising out of the emergency created by the national
defense program, will be a novel and outstanding fea-
ture of the tenth anniversary convention-exhibit of the
National Association of Tobacco Distributors to be
held at the Palmer House, Chicago, January 13 to 17,
1942.

-^^ ^^^ *M,.^i- ^,. xA. J., jj. cuiivciitujU a meliiurauie
feature was the erection and operation of a full-scale
model tobacco distributing house under the hypotheti-
cal name of the Servwell Tobacco Company. As a
result of this four-day demonstration of the most effi-
cient methods of wholesaling tobacco products and
alhed merchandise, a large number of distributors
throughout the nation have been stimulated to improve
not only the physical layout of their establishments,
but also their operating methods.

*'In order to contribute to a still further degree
toward the improved efficiency of the tobacco whole-
salers generally, the N. A. T. D. is undertaking the
gigantic task of bringing the merchandising and oper-
ating problems of the distributor figuratively into a
surgical amphitheater where they will be operated upon
and dissected in the presence of a vast throng of con-
vention delegates,'' declared Joseph Kolodny, execu-
tive secretary.

^ ''In the same manner that other branches of the
industry are passing through a period of great trials
and tribulations, due to the national emergency, the
distributors likewise find it imperative to make many
fundamental adjustments in their businesses," con-
tinued Mr. Kolodny. ^^Not since World War I have
we been confronted with such serious problems flowing
from priorities and allocations, rising costs, shortage
of competent labor, transportation difficulties and
many other factors, including the problem of obtaining
sufficient supplies of needed merchandise.

'*N. A. T. D. conventions in the past have been
noted for their ability to take the 'bull by the horns'
and successfully wrestle with the problems of the in-
dustry. At the next convention we will have a whole
rodeo of bulls to contend with and we are going about
it vigorously and purposefully. And, intending no pun,
that 's no bull, ' ' concluded Mr. Kolodny.

No definite details are given as to how the mer-
chandising clinic will be conducted, other than that
several important innovations will be employed which
have never before been utilized at any wholesalers'
convention.

At the N. A. T. D. offices it was stated that all indi-
cations point to a record attendance at the tenth anni-
versary convention. Secretary Kolodny recently con-
cluded a trip through the far West States, meeting with
groups of wholesalers in many of the principal West-
ern cities, and declared that an unusually large attend-
ance may be expected from the States beyond the
Kockies. Advance reservations which have already
been made at the Palmer House, Chicago, likewise point
to a high rate of attendance. This is attributed not

\T A m ?.^^^ *^^^^ ^^ ^^ *^^ *^^*^ anniversary of the
^* d' \ r ^^^^^ ^^^^ ^^ celebrated in magnificent
fashion but also to the fact that the distributors them-
selves feel the urgent need for a national convention

m order to cope with the many new problems which
have arisen in the trade during the past year.

Upon the City of Chicago has been bestowed the
honor for the fourth successive year of playing the role
of host to the wholesale tobacco distributors of the
United States, as well as manufacturers, retailers and
members of allied trades, who will foregather— in great
numbers— -at the convention.

Cognizant of this unique honor, especially on the
anniversary occasion, the Chicago distributors are al-
^^^^j v/ii tuir jxju laying piaiis to piovme tnc maxi-
mum of hospitality to all the guests. A hospitality
committee has been formed, consisting of Jerry Drell,
M. Udelowish & Co., chairman; Vernon Fox, Nathan
Fox Co., and Charles Rubey, P. J. Rubey Co.

Armed with the proclamation issued by the Chi-
cago Mayor, proclaiming "Tobacco Week," and the
wholehearted support of the National N. A. T. D. office,
the hospitality committee— even at this early date— has
already progressed far toward its objective of provid-
ing for the pleasure of all participants in the tobacco
industry's foremost annual event.

TO SHIP PHILIPPINE QUOTA

The Philippine Commonwealth expects to ship its
entire quota of 190,000,000 Manila cigars to the United
States during 1941, although other Insular industries
are facing a crisis due to the Pacific shipping shortage
The limit of 190,000,000 cigars for this year is fixed by
the Philippine Independence Act as a step to prepare
the Islands for the loss of the duty-free American mar-
ket in 1946.

-.Anr?^*^^^" January 1 and August 31 of this year,
109 709,689 cigars were shipped from Manila. Hawaii
took 2,975,735 of these; the remaining 106,733,954 went
to the continental United States. Philippine cigar
manufacturers are confident thev can find shipping
space for the remaining 80,000,000 before the end of
the year.

Although it is comparatively little known, the
Philippines is the largest exporter of cigars in the
world. Tobacco was introduced to the Islands from
Mexico by the Spaniards more than 300 years ago
^or two centuries the government in Madrid ran the
i^Hilippine tobacco industry as a monopoly. Later

wfn 'i^T^'^.o^v^i^^'^ ^"^^^ important quantities
were sold to 42 different nations. Today, cigars are

the Islands' fourth largest export item.

f ^^"ila ^ijar manufacturers import their wrapper
leaf from the United States. And despite the immense
number of cigars produced there, the Philippines is
the largest overseas market for American cigarettes

JOHN A. SNYDER NAMED BAYUK TREASURER

A. Joseph Newman, president Bayuk Cigars Inc
announced that John A. Snyder was elected freasSer
ot the corporation at a recent meeting of the board of
directors. Mr. Snyder has been a principal in the PhH-
adelphia office of Price, Waterhouse & Co. for several
years^ and for the past fifteen years has been closely
assomt^d with the affairs of the Bayuk Company^
He will assume his new position November 1st, succeed-

The Tobacco World

.\

,/l

i

■ '^*-— >

fRIKE

y

'^^^'&M

\

Jl

\'\

• Actual photograph— F. H. Lewis looks ovtr some fine, tight tobacco, before aging.

"ft/oiif tfiis m (|oa/t ciaarette ?"

"Then smoke Luckies!" says F. H. Lewis, independent to-
bacco wareliouseman of Stoneviiie, N. C.,"because Luckies
pay the price to get milder, better- tastin' leaf like this."

" "DELIEVEme— fine, mild, light to-
■L' bacco like this costs real money.
But that's the kind Luckies go after
. . . and pay the price to get.

"I've seen 'em do it at one mar-
ket after the other, all through the
Tobacco Country ... so you can bet
your boots I smoke Luckies!"

Smokers, that's a pretty good
cue — from a man who knows
what he's talking about — a man
who has spent his life buying.

selling and handling tobacco.

Of course you want milder, bet-
ter-tasting tobaccos in your ciga-
rette—the kind that bring higher
prices at the auctions. Next time
you step up to a cigarette counter,
why not be sure you get these finer
tobaccos.' Ask for Lucky Strike.

Remember: independent tobac-
co experts — buyers, auaioneers,
warehousemen— smoke Luckies by
an overwhelming majority . . .

WITH MEN WHO KNOW TOBACCO BEST— IT'S LUCKIES 2 TO 1

JC^^

November, 1^41

NATURALLY THEY'RE MILDER

GIFT DAYS
AHEAD';

'MM^i,

PROFITS

FOR GREATER
REPEAT SALES AND
FEATURE MANILAS

PHILIPPINE TOBACCO AGENCY

2362 Massachusetts Ave., N. W., Washington, D. C.

TOBACCO CULTURE IN THE VALAIS

By Jean-G. Martin

HE Ehone Valley, where the river bearing this
name has its glacier cradle, has undergone a
remarkable transformation since the beginning
of this century. Fine orchards have sprung
up on formerly barren waste land, asparagus beds are
spread oyer sandy soil, and vast strawberry patches
are thrivmg here and there. Yet, in spite of the splen-
did efforts of the authorities and the people of the
Valais, a relatively extensive area of land is still not
under cultivation.

To prepare it for such usefulness much capital and
much work is needed. While the Rhone Valley has
especially changed in the central part, between Mar-
tigny and bion, it has to a greater extent retained its
former aspect between St. Maurice and the Lake of
(reneva. In that region there are sections of marsh-
land covered with a wild growth of oak, ash-trees, and
white poplars. Underbrush spreads over the sandv
ground, changing off with lean pastures and marshland
bordered by thorny bushes. In the language of the
natives these are '^the flats" where they either mow
the scanty grass or send their herds of goats and sheep
to pasture. ^

In the region from Collombey to Le Bouveret
especially between the river and the- railroad leading
to Le Bouveret, efforts to cultivate the land have onlv
lately been made. For the last four years, thanks to
the initiative of a group of energetic men, about 49 5
acres of land have been cleared for tobacco culture.
8

This district thus follows the new order in the Rhone
Valley and hunters or lovers of forgotten corners
already find it difficult to recognize it. Here tobacco
thrives in unbelievable luxuriance and tobacco drying-
sheds and other buildings loom importantly here and
there.

Every morning during the season, women, children
and young men arrive in the neighboring conmmnities
of Collombey, Muraz and Monthey. A hundred of them
are ready to pick the tobacco leaves and to assist in the
various operations which precede the drying process.
In this district the harvesting is accomplished with
utmost care, leaf after leaf being picked singly. This
work is easy and pleasant, for the sunny plain of the
. River Rhone is fanned by cool breezes. ' Often the
youthful pickers discover nests of birds or rabbits
under the wide spreading foliage.

After being on the ground for two or three hours
the tobacco leaves are wilting and are less liable to get
damaged. They are now gathered and tied into bun-
dles. Presently a truck will pass in the vicinity of the
tobacco fields, collecting the harvest and taking it fo the
curing sheds.

The open spaces between these sheds offer a color-
ful picture. Here the young tobacco workers, wearing
huge hats or gaily hued kerchiefs on their dark-haired
heads, open the bundles of tobacco leaves, then with
large needles deftly thread strings through them before
they are hung up in the drying-room. Many of these
young women wear blue trousers like the men. Long
trousers for work in the fields have been in vogue with
the fair sex of this region for a long time.

Tobacco operations in the Valais differ somewhat
from those in the Broye district of Fribourg. The
Valais lacks the traditional evening gatherings where
families and friends get together to thread the tobacco
leaves in the lamplight. While tobacco culture in the
Valais is carried on in a strictly industrial manner in
Fribourg and Soleure, for instance, it is a pleasing
sight to see directors of tobacco factories working
along with their help, passing jokes and participating
in all the fun that accompanies tobacco harvest. Here,
too, mothers work together with their children, thus
initiating their offspring in the blessing of hard work.

Much scientific research has been done at Lausanne
and Zurich regarding tobacco culture in Switzerland.
Results of these findings are carefully applied by the
Swiss tobacco growers, especially in important indus-
trial enterprises such as one finds them at Collombey
m the Valais. Different kinds of tobacco are subjected
to different drying methods.

REYNOLDS RENEWS CUGAT

The R. J. Reynolds Tobacco Company has re-
newed for another thirteen weeks their contract for
the broadcasting of Xavier Cugat and his music to
Central and South America, over NBC International
Division Shortwave Stations WRCA and WNBI, on
Thursday evenings, from 9 :15 to 9 :45 P. M., E. S. T.
This IS a Spanish version, with Spanish announce-
ments, prepared by Ken Smith of the International
Division, of Cugat 's regular NBC-Red Network pro-
gram on Thursday nights for Camel cigarettes. Wil-
liam Esty & Co., 100 East Forty-second Street, New
York, IS the agency.

The Tobacco World

\

Pictured here are the
colorful King Edward
Christmas wraps— The
Double Ten"Pac\ahove;
the box of 50 King
Edwards below. -U '^ -U

Puts on a Santa Claus Suit!

^

Here's the natural gift for

men, especially Soldiers,

Sailors, Marines and Coast

Guardsmen — King Edward

in a gift wrap. They've seen

King Edwards advertised in

their service magazines. They

know this fine cigar and

will welcome the cheery,

ChristmaS' wrapped box.*^-^

Push King Edward Cigars for

Christmas gift merchandise.

America's most popular cigar

will bring you even greater

volume and turn-over in this

gay Christmas wrapping. -Cr-C?

JNO. H. SWISHER esf SON, INC.
Cigar Manufacturers

JACKSONVILLE, FLORIDA

WAREHOUSES UNDER WAGE LAW

OBACCO auction warehouse is a ^'handler of
a product moving in interstate commerce ''
and thereby comes within the provisions of
the Federal Wage and Hour law, according
to an opinion handed down by Judge MacSwinford in
the United States District Court for the Eastern Dis-
trict of Kentucky at Covington on October 11. The
defendant, the Kenton Loose Leaf Tobacco Ware-
house Company, was enjoined from future violations.
The Federal Wage and Hour Law applies to those
engaged m interstate commerce or in the production
of goods for interstate commerce. The Court not only
held the defendant to be engaged in interstate com-
merce, it also cited the statute's definition of ^'pro-
duced'' to hold that the defendant's employees were
engaged in production of goods for interstate com-
merce even though the defendant's operations were
not manufacturing or processing in the usual sense.

Judge Swinford's opinion stated in part: ''The
purposes of the Fair Labor Standards Act (Federal
Wage and Hour Law) are set forth in Section 2 (a)
wherein it is stated that the legislation is necessary
because Congress finds 'labor conditions detrimental
to the maintenance of the mininmm standard of livino-
necessary for health, efficiency and general well bein^
of workers,' all of which burdens and affects inter""-
state commerce.

''The Court cannot question this pronouncement
?l ]:'2l^^^^^^ ... It is shown and not contradicted
that Kentucky has the lowest wage scale of any of the
tobacco marketing States ...

November, 1^41

"No case has been called to my attention and I
have found none deciding the exact question here pre-
sented. A warehouse is not a producer in the ordinary
sense of the word. Neither is it engaged as a ' service
establishment' and subject to the exemptions under
Section 13 (a) (2) of the Act."

The warehouse asked the Court to find that it was
not subject to the provisions of the Act because the
wage it paid did not affect interstate commerce and be-
cause, as a service establishment, it was exempt under
Section 13 (a) (2).

The opinion denied defendant's contention that it
was a service establishment by reference to Judge
Shackelford Miller's opinion in the case of Stucker v.
Roselle, 37 Fed. Supp. 864. This opinion upheld the
description given in the Wage and Hour Division 's In-
tepretative Bulletin No. 6 of the "service establish-
ment ' exempted by Congress.

Judge Swinford's opinion concluded with, "It
(the warehouse) is, however, a handler of a product
moving in interstate commerce and thereby comes
squarely within the definition of 'producer' as defined
in Section 3 (j)."

Section 3 (j) of the Wage and Hour Law defines
"produced" as, "produced, manufactured, mined, han-
dled, or in any other manner worked on in any State ;
and for the purposes of this Act an employee shall be
deemed to have been engaged in the production of
goods if such employee was employed in producing,
manufacturing, mining, handling, transporting, or in
any other manner working on such goods, or in any
process or occupation necessary to the production
thereof, in any State."

-»»«oi

LASLC-

rim
MM

NO I
COi

My

Mr. Dealer:

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plam
ends. Save these valuable coupons for cash or
one of the seventy luxury premiums.

Brmm ir VMuamn Tcbaca Ccrpcralion

i^lM^.

UNION MADI

^■«--«--^-» ^ A AAA A A^

niNI IN Red Skcllon .and Ozzic

N _!--.«. o..»rv Tii«*«clav nisht,
coast-to-coast NBC Red network.

i

mmi^"^-^-^^*-^^^

ta^^ft-^'^^-'

OENERAL ELECTRIC TABU RADIO

1500 coupons. Ask chc B&W sales-
man for a supply of the new full color
italogs showing all the premiums

NEW REYNOLDS METALS PLANT
LANS are being drawn for the third aluminum

plant to be owned and operated by Reynolds

Metals Co., according to announcement by E. S.

Reynolds, president of the company. The new
plant is expected to be located at Listerhill, Ala., in the
Muscle Shoals district, where the Reynolds company
already owns and operates an alumina plant and an
alummum plant producing forty million pounds of vir-
gin aluminum a year. The company also operates a
rolhng mill, producing aluminum sheets at the Lister-
hill site. The new aluminum plant is expected to in-
crease Reynolds' aluminum production to 160 million
pounds a year.

The third aluminum plant, like the other two now
m operation, will be entirely owned by the Reynolds
Metals Co. The first two plants were financed by
Government loans that held as security the entire
eighteen plants of the Reynolds company operating at
the time the first loan was made in 1940.

Company officials would make no predictions as to
when the third plant would be in operation, but pointed
to the record made at Listerhill in the construction of
the first plant, where aluminum was poured within five
months and twenty-eight days after ground was broken
at the site. An even better record for speed was at-
tained in the building of the company 's second alumi-
num plant at Longview, Washington, where production
started m four months and eight days after the begin-
ning of construction.

In addition to the manufacture of aluminum from
bauxite, the Reynolds Metals Co. is engaged in a
variety of production of aluminum parts and shapes,
currently operating thirty plants in seventeen cities, a
majority of them being largely engaged in national
deiense production.

BURLEY MARKETING REGULATIONS

Marketing regulations for the sale of 1941 Burley,
fire-cured, and dark air-cured leaf tobacco have been
announced by the Department of Agriculture.

Marketing quotas for fire-cured and dark air-cured
types are m effect for the first time since 1938, but the
regulations are basically the same as for Burley
tobacco.

Regulations for marketing Burley are virtually
the same as those applied last year except for a change
m the manner of handling nonwarehouse sales. This
provision is also applicable to dark air-cured and fire-
cured tobacco.

10

'RELAX WITH A GOOD CIGAR!"

iVfgg ^ ^^^^^ t^^^t 8'ootl five-cent cigar Vice-President
)^'m Marshall advocated many years ago," Senator
James J. Davis of Pennsylvania declared at
Lancaster, Pa., recently. ''What the nation
needs now is to relax with it!" Senator Davis spoke
at a ceremony honoring the Demuths Tobacco Shop, in
business since 1770— founded before tlie United States
was born, and in the same family continuously He
presented a scroll offered by the Cigar Institute of
America m recognition of this unique record in Amer-
ican enterprise.

''What America requires on every Main Street,"
. remarked the Senator, ''is time out for thought and re-
flection. Relaxation and conservation of energy pre-
cedes the action and drive of the American people

*' Winston Churchill's cigar is really a symbol. He
measures his words and determines the cours^e of Em-
pire between whiffs; this he does in England's hour
of greatest peril. In the leisurely draw upon his
tavorite Havana, future history is being made. And
It IS being made in a way that will affect us and our
children, for many generations to come.

"As we face the tensions and the nerve-strain of
this war-torn world, systematic means of relaxation
and ease of body and mind must be found. For many
that relaxation is found most readily, in calm moments!
with a good cigar."

The special certificate was presented to Chris-
topher Demuth, great-great-great-grandson of the
tounder of the same name. The Demuth establish-
ment opened its doors in the same building it occupies
today, remodelled and expanded several times. From
this spot ''segars" and snuff were provided for the
Continental Army, one of many memorable incidents
m the Demuth career.

Albert H. Gregg, president of the Cigar Institute,
called atteiition to the extraordinary circumstance
that the Demuths are the sole tobacconists who have
witnessed the complete cycle of smoking fashions in
America The Colonial penchant for snuff," explained
the Institute," was being diverted by the ascendancy
ot pipe smoking and chewing about the time the shop
was started. ^

"A few years later cigars (in the modern form)
were introduced on a considerable scale into the new

ftln^l'^r^ "^T/'f ^^'^ ''^""^ liundred years became the
tavored form of tobacco. Then, after the World War
the present America witnessed the overwhelmini? tide
of cigarette consumption, which engulfed the women as

(Continued on Page 13)

The Tobacco World

TOBACCO'S SHARE OF REVENUES

Yielding the largest share of federal revenues over
a thirty-year period, 1911-1940, have been income, to-
bacco, and alcohol taxes, and customs, according to
Tax Yields: 1940, a new book just published by the
Tax Institute of the University of Pennsylvania. The
study analyzes federal and state tax collections over a
long period of time both by governments and by
sources of revenue.

Total federal tax collections for the thirty-year
period, shown by five-year intervals, are as follows-
1911, $644,197,000; 1915, $629,946,000; 1920, $5,740,-
573000; 1925, $3,139,603,000; 1930, $3,633,203,000;

±^c>uj 5t>^,0u^,oyo,viuu ; l^i4u, ^4,»DU,DZ4,UUU.

Omitted in the above five-year summary are the
years 1932 and 1933 to which some significance can be
attached. During these two years, federal tax collec-
tions fell below the two billion mark, recovering in 1934
to almost three billions. Federal collections first
reached a billion dollars in 1917. The peak of collec-
tions for world war spending was in 1920.

The Tax Institute study shows a break-down of
federal revenues by sources. Of 'some twenty general
categories, the largest income producers were income,
tobacco, alcohol, and the tariff, each varying in per-
centage of the total yield from year to year but main-
taining a lead over all taxes for the thirty-year period
as a whole. The proportion of total federal tax collec-
tions produced by these taxes for various years is
shown m the following table :

Tax

Income
Customs
Tobacco
Alcoholic
beverage

1911

5%
49
10

1915
13%
33
13

1920
69%

6

5

1925
56%
17
11

1930
66%
16
12

1935
30%
9
13

1940

44%
7
13

34 36

11 13

• i/ Ai .^ Institute points to sharp fluctuations in
yield ot the income tax, rising sharply in war and pros-
perity periods and falling sharply in the depression.

Numerous adjustments in rates as well as external
conditions, have had much to do with fluctuations in
yields," the study states.

Excises such a taxes on alcohol and tobacco show
a steady long-term rise in yield, interrupted on the
former tax only for the fourteen years of prohibition.
Other excises that have reached high points of produc-
tivity are transportation and transmission, gasoline
autos and auto parts, and admissions and dues In-
come taxes for the next two years will probably break
all-time records both in total collections and the per-
centage they make up of all federal revenues.

LORILLARD RENEWS "TOMMY RIGGS"

P. Lorillard Company has renewed for another
deven weeks, as of October 15, their contract for
Tommy Rigs and Betty Lou," heard over the NBC
Pacific Coast Red Network from 12:30 to 1 A M

ti. iJ^'i -S" "^^^^l^d.a^ evenings. The program is in
behalf of Beechnut cigarettes. J. Walter Thompson is
the agency. ^

TO PARTICIPATE IN CONVENTION

ii. , V^"^, Pliilippine^ Tobacco Agency has announced
Iil^AT IV''^"^,^^ participate in the convention-exhibit of
I 1. 1 1*' x"!^] Association of Tobacco Distributors, to
be held at Chicago in January. The Agency is reserv-
ing a booth, at which high-grade Manila cigars will be
leatured.

November J 1^41

LORI LLARD'S POPULAR LEADe RS

Something NEW*

has been added!

It's the new Old Gold-enriched
with a rare imported tobacco—
so now it's better than ever!
Get more pleasure from your
Old Gold now that something
new has been added.

:(c NEW— A priicd imported fobocco, from fh«
•ottam Mediterranean— a lolxicce whote imall
aromatic leaves impart new life and zest to the

wUh OW GoM wai be even more o/eosont than b^fetm.

^2^?7Yi^j2/2^zi<2777^^^2^

Americo't eldetl tobocco merdionti— EslablMied 1760

•I

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands

BETUN, AROMATIZER, BOX FLAVORS, PASTE SWEETENERS

FRIES & BRO., 92 Reade Street, New York

CIGAR BOXES

Tel. Algonquin 4-9532

Established 1875

••««i*cio*m«Mrt
0S7-64I cjurrt7nsT.

The TOBACCO WORLD

is a good advertising medium for all types of
tobacco products and smokers' requisites.

II

Attractive Christmas Packages

Bidding for Christmas holiday business, R. J.
Reynolds Tobacco Company is boosting sales-leading
Camel cigarettes and Prince Albert smoking tobacco
with advertising and promotion in virtually every sell-
ing medium.

Special Christmas advertising in leading maga-
zines, newspapers and comic supplements and special
radio commercials on the Reynolds network programs
feature Camels and Prince Albert as ideal gifts for
smokers.

Advance releases reveal the Camel carton of ten
packages of 20 's in a gay new Christmas wrapping
which carries its own personal greeting card. Another
Camel gift package featured in large iPull-page adver-
tisements is a unique package in the shape of a house
gaily trimmed for the season even to the snow on the
roof. This novel package contains four of the Camel
**flat fifties." It, too, has its own gift card and re-
quires no special wrapping.

Prince Albert — the National Joy Smoke — is fea-
tured in a choice of two handsome gift packages. One
is the ever-popular tin of Prince Albert. The other is
a colorful, eye-catching package containing a pound of
Prince Albert in a real glass humidor, actually two
gifts in one because the glass humidor can be used long
after the original gift of Prince Albert has been
smoked.

For the more modest purse, the large one-pound
tin of George Washington smoking tobacco is offered
in an eye-appealing holiday wrapping sure to catch cus-
tomers ' attention in any gift display.

12

Shown here are the colorful Christmas wraps that
will enliven boxes containing millions of King Edward
cigars this Christmas.

H. K. Smith, vice-president and sales manager of
Jno. H. Swisher & Son, Inc., makers of King Edward,
anticipates the greatest Christmas sale in the com-
pany's history as a climax for the company's greatest
year.

Nearly every week since July has seen production
reach new high peaks yet orders for King Edward keep
constant pace with production, according to Mr. Smith.

WAREHOUSE AT STATEN ISLAND

Permission for the construction of a specially de-
signed tobacco warehouse in Foreign Trade Zone No.
1 at Stapleton, Staten Island, New York, has been
granted by the Foreign Trade Zones Board, Secretary
of Connnerce, Jesse Jones announced today. Mr.
Jones is chairman of the board.

The building, a two-story brick structure, will cost
about $200,000 and will provide 60,000 square feet of
storage space. Adjoining the present Frascati or sales
building, it will contain special facilities for handling
tobacco.

The storage will be used for the storage and
manipulation of Sumatra tobacco, which, prior to the
German occupation of the Netherlands, was brought to
Amsterdam and Rotterdam for sale on international
markets established in those cities. For the first time
in history, the 1940 crop was brought directly to the
New York Foreign-Trade Zone and sales were con-
ducted in a special market building erected at the ex-
pense of the growers. In addition to supplying the de-
mand of American customers, substantial quantities of
the Sumatra tobacco were sold for the account of
Canadian, Latin American and Swedish buyers.

These sales were so reassuring that the growers
decided to erect a tobacco warehouse, replacing the
temporary storage rooms on the piers.

Funds derived from these sales of Sumatra to-
bacco are used for the purchase of American goods and
military supplies for the Netherlands East Indies.

The Tobacco World

i

MODEL TOBACCO Presents

one of radio's outstanding hits

MODEL'S "GAY NINETIES REVUE

You and uli yoiif customers will like it

Coast to Coast Every Monday Night

on Columbia Broadcasting System

**RELAX WITH A GOOD CIGAR!''

{Continued From Page 10)

well as the men. This spectacular rise of the cigarette
persisted through the twenties and most of the thirties.
Recently a trend back to cigars has become manifest."

Senator Davis declared also: ^^ Always it is a
source of inspiration to me to come to Lancaster. I
find the substantial riches of American mind and char-
acter in this place. For the people who came to settle
here in past generations came because they loved lib-
erty and the right to pursue it in peace and happiness.
They w^ere unwilling longer to endure the oppression
of the old world patterns of tyranny and injustice.

^'I have come today to pay tribute to your in-
dustry, your understanding, and your common sense.
I have not come to make headlines or to advertise poli-
tics or industry. I have come with high appreciation
of the broad middle highway of life which so many of
us have chosen to walk along together. Some have said
at times I was too strong a.f riend of labor ; today some
say I am a defender of the capital resources of Amer-
ican corporations. I wish to make clear that it is my
duty within the Constitution of the United States to
stand for all the elements in this Republic which are
necessary to the maintenance of our national unity and
strength. Agriculture, labor, and industry have an
equal stake in this.

''I am very happy to be here to express genuine
appreciation of the important part that Lancaster
County plays in the agricultural life of the nation.
Pennsylvania is the most important state in produc-
tion of cigar-filler tobacco. The filler district centers
in Lancaster County which has the distinction of be-
ing the most important County in the United States in
tobacco production. The development and maintenance
of this crop over a long period of years constitutes an
epic in the agricultural history of the nation.

''Rarely is a business conducted without interrup-
tion over a period of a century and a half. It is there-
fore a significant sign of the economic stability of
Lancaster County that the Demuth Tobacco Shop of
Lancaster has been in existence for 171 years. Over
tliat span of time this business has been conducted by
Christopher Denmth, the founder, and each succeeding
generation on the same spot as the original store. It
IS without doubt the oldest tobacco store in America.
It IS indeed an honorable record and a splendid tradi-
tion of economic stability.''

November, 1941

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter
It's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 68 years

15 Washington St. Newark, N. J.

EsublUh«d 1886

''BEST OF THE BEST"

Mt

'^^±^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kep West, Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit, Mich.

Hellam, Pa.

Hanover, Pa.

Philadelphia, Pa.

Wheeling, W. Va.

13

Tobacco Merchants' Association
Registration Bureau, JtV'ioSaTY

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-
Cnauta r\9sOciatiun un 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.

TOBACCO TRADE ORGANIZATIONS

Ji,^i

/

A

W

NEW REGISTRATIONS

TRIPLE THREAT:— 46,870. For all tobacco products. Registered

by Crimson Coach, Inc., Toledo, Ohio, on September 30, 1941.

ETCHINGS:— 46,871. For all tobacco products. Registered by
Crimson Coach, Inc., Toledo, Ohio, on September 30, 1941.

TRANSFERRED REGISTRATIONS
AIR LINE:— 2^36 (U. S. Tobacco Journal). For cigars. Regis-
tered November 29, 1884, by Witsch & Schmitt, New York, N. Y.
Transferred to American Box Supply Co., Detroit, Mich., and re-
transferred to B & M Cigar Co., Inc., Essexville, Mich., on Sep-
tember 12, 1941.

LA OVETENS A:— 29,087 (Tobacco Leaf). For cigars, cigarettes
and tobacco. Registered February 4, 1905, by O. L. Schwencke
Lithographing Co., Brooklyn, N. Y. Through mesne transfers
acquired by Fernando Alvarez & Co., Chicago, III., and re-trans-
ferred to Frank Lopez, Chicago, 111., on October 10, 1941.

INTERNAL REVENUE COLLECTIONS FOR SEPTEMBER

Source of Revenue 1941 1940

Cigars $ 1,275,564.84 $ 1,186,127.19

Cigarettes 60,976,400.83 48,453,980.00

SnuflF ... 574,977.02 512,886.16

Tobacco, chewing and smoking 4,781,259.61 4,658,532.56

Cigarette papers and tubes 191,275.91 103,507.13

Leaf dealer penalties 530.62

*Manufactured ToBacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based on

manufacturers' returns of production)

Month of July

_ , Increase or Decrease

Product 1941 Quantity Per Cent.

?^"^, 4,559,800 -f 38,320 0.85

Twist 482,655 - 5,931 1.21

Fine-cut Chewing 457,691 -{- 26,012 6.03

Scrap Chewing 3,883,773 - 101,202 2.54

Smoking 16,348,280 — 1,112,215 6.37

Total 25,732,199 _ 1,155,016 4.30

Seven Months Ending July 31

T> , ^ Increase or Decrease

Product 1941 Quantity Per Cent

P1"K, 29,178,675 -^ 608,173 2 13

J.^^^t 3,205,294 -f- 5,399 0.17

Fine-cut Chewing 2,899,058 + 261520 9 92

Scrap Chewing 25,431,535 -f 861996 3 51

^^okmg 114,621,343 - 962,053 0.83

Total 175,335,905 + 775,035 "~a44

.*The production figures are in pounds, and are subject to revision
Revlnue '" ^"""'^ "'^''"' °^ '^^ Commissioner of Imernal

GROWERS FAVOR INSPECTION

Tobacco inspection was favored by over 90 per
cent, of the tobacco growers voting as patrons of 27
burley markets in Kentucky, Tennessee, North Caro-
lina, Indiana and Missouri. The growers voted in a
referendum held October 2 to 4, under the provisions
ot the Tobacco Inspection Act.

r4

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

<X^

JESSE A. BLOCH. Wheeling, W. Va President

ru}^h}^^J^W,',^^^ ^%^'u^J-^ Chairman Executive CommitlJe

UbUKuE W. HILL, New York, N. Y Vice-President

GEORGE H. HUMMEL New York. N. Y .Vice-pJesidlSt

S. CLAY WILLIAMS, Winston-Salem, N. C Vice-President

i'iVVIiif ^VS^S^'^^<S\^tr >^°^^' ^- ^ :::.::vice-presidln

ASA LEMLEIN, New York, N. Y TrMQiir..r

CHARLES DUSHKIND. New York, N. Y Counsel and Managing Director

Headquarters, 341 Madison Ave., New York City

CIGAR INSTITUTE OF AMERICA

ALBERT H. GREGG President

ALVARO M. GARCIA V ce-Pres dent

D. EMIL KLEIN Tjelsurer

SAMUEL BLUMBERG SeSetarv

B. M. NUSSBAUM V.Dir^cVor 0^11 b lie Uy

THE NATIONAL ASSOCIATION OF TOBACm
DISTRIBUTORS, INC.

Fnw^A^S^yiWp Chairman of the Board

EDWARD GRAUER Pre«JHent

J. RENZ EDWARDS .' ." Treasurer

JOSEPH KOLODNY, 200 5th Ave., New York, N. Y .\.Ex;cutiVe' Secretary

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LASCHOW, 862 East Fifteenth St., Brooklyn, N. Y President

w H ^'(^?H ^i£^Mp ^^"'1 ^"- S^t"*°"' ^/j • •• F>"t vic;:pJesidlS{

Ai-^Fi?^%Sti''2?A^T*-o?°x^f^ ^l^' Baltimore, Md Second Vice-President

ALBERT FREEMAN, 25 West Broadway, New York, N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

ERIC CALAMIA, 233 Broadway, New York, N. Y President

CLIFFORD M. DAWSON Treasurer

MALCOLM FLEISHER ,- SecretarJ

SEIGFRIED F. HARTMAN ...■.*.■.'.'.■.■.*.'.'.'.'.■.'.'.■.. Counsel

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA
INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA President

WALTER E. POPPER Trefsnrer

SAMUEL BLUMBERG '...'//. General Counsd

Executive Committee-AIyaro M Garcia (Ex-officio), Thomas C. Breen. Harley W.

Jefferson, D. Emil Klein, Walter E. Popper, Harry C. Carr. and Arthur A

bcnwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP. Red Lion, Pa President

ARTHUR McGUIGAN, Red Lion, Pa Vice-Pres dent

RUSSELL S. STINE, Red Lion. Pa . Secritfrv

A. s. ziEGLER. Red Lion, Pa. i..::..::::..:::::;:::::;;;.'.TreI1urer

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

ARMANDO RODRIGUEZ Presidenf

FRANCISCO GONZALEZ .. Vic^lPres denJ

JOHN LEVY "■ Treasnrei

i^RANcis M. SACK : .:v^\v:::::::::::^v:::::::::::^!!^;

INDEPENDENT RETAIL TOBACCONISTS'
ASSOCIATION

BERNARD SCHWARZ Pre,;H*nf

BENJAMIN FRIEDMAN T F-'irsV Vi;;^^ K

fi^^g^ig^i^^^.-.;;;;.v.-.v.v.;.;;;;; •••• "•'••^^ i |

fo^E^G^s^Mir.^. .;.•.•.•.•.••. :::::::-:-:^l^r:ii^p^

SERNARD BERNSTEIN. 42 Broadway; New YoVkrR'Y.'V.V.V.V.V.V.V.'.sJc^^^^^^

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA. INC.

VICTOR KORMAN Pre«,H^«f

CHAS. B. KIRWIN President

LEO RiEDERs. 604 West 162nd •stVeet.N;w'YoVk:'N:'y:'v.:;;;::::::s^c^^^^^^^

August and 8-Months' Figures of Tax-Paid Products From

Puerto Rico

The Tobacco Barometer Supplements for August did not include
data covenng tax-paid products from Puerto Rico, since the August
hgures were not available at that time. However, they have since
been received, and are as follows:

„ , 1st 8 Months

Product August, 1941 Cal. Yr. 1941

Cigars:

Cjass A 26,700 168.535

C^ss B 8,150 74,200

Class C 3,250 95,150

^ ass D 300

Class E

Total All Classes .... 38,100 338,185

Cigarettes 555,000 3,298.900

Large Cigarettes 20,000 80,000

AMERICAN TOBACCO EXTENDS CONTRACTS

The American Tobacco Company has extended its
contract with the Columbia Broadcasting System for
^Your Hit Parade,'' and with NBC for ^information
Please. " The accounts are handled by Lord & Thomas.

The Tobacco World

K"

DECE

LIBRARY

ft BCKl V B O

DEC 9 -1941

|iOi(|NUtm«At of AfHcuiturt

ER

1941

a

ESTABLISHED

1881

OCTOBER REGISTERS
BIG TOBACCO GAINS

Sales of revenue stamps covering the
astonishing" total of 19,632,466,010 U. S.
cigarettes were reported for October,
this year.

This exceeded the 16,448,241,230 total of
the same month last year by 3,184,-
224,780, or 19.36 per cent.

Cigars, too, showed big increases— Class
A, 7.5 per cent.; Class B, 18.04 per cent.;
Class D, 11.32 per cent.; Class E, 30.76
per cent.; all classes combined, 6.59 per
cent. Only Class C registered a decline,
and that was a negligible one of 1.65
per cent.

HoBART B. Hankins EdltOT

Business Mcmager — ^B. S. Phillips

Wsth MA'JREEN O

if$ Chesterfield for Christmas

Sh9 is appearing in the

20th Century-Fox Production

"HOW GUttN WAS MY VAUiY"

)

)

AiCjmt

T

Copyrighc 1941, Lccirr & Myus Tobacco Co,

Here are your Milder Better -Tasting

Chesterfields again ... in the most attractive, up-to-the-
minute Christmas gift package of the year.

Buy them for the folks at home . . . send them to your friends
and don't forget to mail them to the boys in the Service.

YOU CAN T BUY A PETTER CIGARETTE VAc^M^Ju

THE TOBACCO WORLD

Vol. 61

DECEMBER, 1941

No. 12

MOKES for Yanks — that is the pleasant-
sounding title of an enterprise conducted by
the Philadelphia Inquirer and other news-
papers throughout the country to provide the
solace of tobacco to Uncle Sam's fighting men in the
Army, Navy and Marine Corps. Funds for the pur-
pose are being raised by popular subscription, the
readers of the newspapers rallying to the cause in a
manner enthusiastic in spirit and gratifying in volume.
Eepresentatives of the Philadelphia Inquirer have
conferred in Washington with officials of the War and
Navy Departments on plans for speeding the free
** Smokes for Yanks'' to the defense posts outside the
U. S. at the earliest possible moment. Unlike other
campaigns, this one has neither quota nor time limit,
and the Inquirer, for quite obvious reasons related to
defense secrets, can't give exact figures on what
cigarette and tobacco consumption at extra-continental
defense posts may be. However, every cent con-
tributed will be used for the purpose of buying tobacco
for the boys ; not one cent will be used for overhead,
directly or indirectly. That is the pledge which the
Inquirer makes to contributors.

-0-L-D — Thus rings the chant of the tobacco
auctioneer — and another lot of tobacco is on
its way to the factory. Before this picturesque
phase of tobacco selling takes place, however,
the Federal Government has performed a very im-
portant, if somewhat less picturesque function — the
inspection and certificating of the leaf tobacco by in-
spectors of the Agricultural Marketing Service of the
Department of Agriculture. If the reader knows of
anyone who wants to be a tobacco inspector, he will
be interested in the news that the United States Civil
Service Commission has just issued a call for vacancies
in these positions, which pay from $1620 to $3200 a
year. The inspection of tobacco involves the judging
of lots of leaf tobacco to determine its type, group,
quality, length and other characteristics, and placing
it in one of sixty or more grades according to U. S.
standards. In addition to the three grades of posi-
tions involving regular inspection work, appointments
will be made for trainee inspector and marketing aid
positions ($1620 and $1440 a year respectively). Per-
sons appointed to these positions will have an oppor-
tunity to work under the close supervision of ex-
perienced inspectors, and in this way acquire within
the service a knowledge of tobacco inspection work
and the U. S. standard grades under the Tobacco In-
spection Act. Opportunity for promotion is good.
Applicants must have appropriate experience in the
sorting, inspecting, buying, selling or blending of to-
bacco according to quality. Provision is made for the
substitution of college study for part of the experience.
Applicants for the two higher grades (associate and
assistant) must not have passed their fifty-first birth-

day; for the junior grades, the maximum age limit is
thirty-five. Applications must be on file with the U: S.
Civil Service Commission, Washington, D. C, not later
than December 18, 1941. Interested persons are urged
to consult or obtain a copy of the examination an-
nouncement, giving full details on requirements, op-
portunities, etc., at any first or second-class post office,
or at the Commission's central office in Washington,
D. O.

HE nation progresses — in hotels and over
cigars. Many decisions affecting industry and
politics have been— and are, more so, in these
times— reached in the hotel suites of the coun-
try as the participants puff on their cigars, says the
Cigar Institute of America. The Institute sent a tele-
gram of congratulation to the new officials of the
American Hotel Association, following the latter 's
national convention in New York City. The confer-
ences playing a large part in formulating the policies
and actions of American leadership, asserted Albert H.
Gregg, CIA president, are often held away from the
clamor of offices, on neutral ground, in the quiet of
hotels, and ' ' the leisurely whiffs on cigars aid in reach-
ing final decisions on plans that affect citizens all over

S^xYJ^^*^.^ ^*^*^^- ^* ^® satisfying to contemplate
that the cigar industry and the hotel industry cater to
the discriminating, the hotels with an indispensable
service and the cigar industry with an indispensable
product. "

ROM Eric Calamia, president of the Retail To-
bacco Dealers of America, Inc., to Alvaro
Garcia, president of the Cigar Manufacturers
Association, went the following letter on No-
vember 13: ^*We all realize that increased costs of
material and labor may require the cigar manufac-
turers to increase present list prices. But any ad-
justment of manufacturer's list price must provide
for similar increases to be passed on by the retailer
to the consumer. This is the only equitable manner
in which the manufacturer can hope to keep alive the
retailer's interest in promoting his brand, for the re-
tailer cannot absorb any part of such increases. Un-
fortunately, the situation in the retail cigar field has
been one of cut prices and has led to the elimination
of all profits. This has been so general that it is
responsible for the indifference of the retailer to cigar
promotion. Consequently, he more prominently dis-
plays and gives increased attention to the sale of
sundry items because they assure him a fair profit.
Present conditions provide the manufacturer with the
logical opportunity to again create the incentive neces-
sary if the retailer is to promote cigars instead of just
stocking them as a side line. The cigar manufacturer

The TOBACCO WORLD (est. 1881) is published by Tobacco World Corporation; Hobart B. Hankins. President and Treasurer; B. S. Phillips. Vice-Pre.id.nf John Clearv
Secretary. Office 236 Chestnut Street. Philadelphia. Pa. Issued monthly. Subscriptions, available only to those engaged in the tobacco industry or trade' 1^ (S ^ ye/r'
IS cents a copy; foreign. $1.75 a year. Entered as second-class mail matter. December 22, 1909, at the Post Office, Philadelphia. Pa., under the Act of March 3," 1879.

can be assured of retailer effort to promote increased
cigar consumption only when a living profit is pro-
vided for. I am addressing this communication to
you as president of the Cigar Manufacturers Associa-
tion and trust that you may have the opportunity to
convey to your members these thoughts which express
the feeling of the majority of retailers and is of grow-
ing concern to them/'

FOWLEE ELECTED DIRECTOR

American Tobacco Co. has announced that at a
meeting of the board of directors, Preston L. Fowler,
formerly manager of its Durham factories, was elected
a director of the company and chief of manufacture,
to succeed the late Charles F. Neiley, who died on
October 27.

John A. Crowe and William H. Ogsbury were ap-
pointed assistant chiefs of manufacture. Mr. Crowe
and Mr. Ogsbury were assistants to Mr. Neiley and
both have been directors of the company for some
years.

Mr. Fowler has been engaged in tobacco manu-
fcaturing for thirty-four years, having started in 1907
in the Penn Street Brooklyn branch of the original
American Tobacco Co. He was born in Westfield,
Mass., September 3, 1883, and received a law degree
from Boston University in 1904. A few years later he
left law practice for tobacco manufacture and entered
the employ of the American Tobacco Co. In 1925 Mr.
Fowler went to Peru to reorganize and manage the
government's tobacco industry in that country. He
returned to the American Tobacco Co. in 1930 as super-
intendent of its Durham factories, later becoming
manager.

LIGGETT & MYERS XMAS PACKAGES

This Christmas Chesterfields are attractively
packed in more ways than ever before— in gay colored
Christmas cartons of ten packages each (200 cigar-
ettes), in cartons containing four flat tins of fifty
(really four handsome gifts in one) and brand new
this year, in cartons of three packages each — all at-
tractive yet inexpensive gifts.

Liggett & Myers smoking tobacco brands are also
dressed up in holiday wrapping. There's Velvet for
the pipe smoker, or the man who likes to roll his own,
beautifully packed in the useful Humi-Seal glass jar
or the regular eight-ounce or one-pound tins.

And an eight-ounce or one-pound tin of Granger
Rough Cut, with its big shaggy cool-smoking flakes,
will keep any pipe smoker happy. These holiday gift
cartons say Merry Christmas to all.

GEORGE HENRY LUCIUS

George Henry Lucius, an executive of P. Lorillard
Co for many years, died November 15th, at his home,
155 South Clmton, East Orange, N. J., after a pro-
longed illness during which complications developed
that proved fatal. Mr. Lucius entered the tobacco
business with the old American Tobacco Co. many
years ago and transferred over to the P. Lorillard Co
at the time of the dissolution in 1911, taking charge
of the scrap chewing sales division, and continued in
various capacities in the sales and advertising end of
the business until his illness caused him to become
inactive several months ago.

INSTITUTE PROMOTION PLANS

HE Cigar Institute announces its plans for
holiday promotion of cigars, which will be of
keen interest to manufacturers, wholesalers
and retailers. In addition to publicity ac-
tivities, which will focus attention upon cigars in news
stories and press photographs, the Institute has pre-
pared two striking posters for display in retail estab-
lishments, together with a consumer leaflet to pass out
to the dealers ' customers. Two themes are emphasized
m the posters and the leaflet, namely, cigars make the
ideal Christmas gift for men, and cigars represent the
perfect symbol of hospitality in home and office. The
latter amplifies the former, and thus broadens the
scope of box selling at the holiday season. The point
here is that the appeal *'to give him cigars this Christ-
mas'' might only be valid in the case of gift buying
for known cigar smokers, whereas the hospitality
theme sells the idea that a box of cigars will be wel-
come to any man, whether he is a regular cigar smoker
or not, to pass out to his friends during this season
of good will.

The window poster, illustrating this hospitality
theme, shows the host beside the Christmas tree offer-
'"^i^^t friend a cigar, and radiates friendliness and
good cheer. It is on heavy glossy coated paper— 12 by
18 inches— printed in eight colors— large and colorful
enough, from its vantage point on the outside of the
dealer's window, to attract passers-by, but not so large
as to obscure the display inside the window.

The other poster in color shows an original paint-
ing of Santa Claus, with the slogan ' ' This Christmas
Give Him Cigars." It is an upright design— fourteen
inches wide and twenty-one inches tall— which just fits
m the average wall case back of the cigar counter.

Announcements have been sent out to a large list
of key distributors and chain store organizations,
offering any quantity of these poster sets free, which
the jobber or chain will agree to put up in retail estab-
hshments. It is expected that over one hundred thou-
sand sets will be used.

The consumer leaflet contains a strong cigar ap-
peal, and stresses the gift and hospitality idea. With
a batch of the leaflets goes a neat, collapsible holder
tor the counter. A distribution of three million of
these pamphlets is planned among selected dealers
throughout the country, handled by the 276 key dis-
tributors, who are associate members of the Institute
as well as the leading chain store organizations. '

Although the above assortment of point of sale
material represents a large scale promotion in itself,
the Institute has decided to go still further in helping
the cigar trade to move more merchandise this Christ-
mas season than ever before. Beginning about the
end of November, a radio program of spot announce-
nients will be launched in fifteen of the largest cities
ot the country, and extend right up to December 25.
Ihe broadcasts will carry a message to women, as well
as men, suggesting cigars as the ideal gift for men this
year.

1

Cigars and Cigarettes Gain in October

WHITE OWL RADIO PROGRAM

The General Cigar Co. announces that its White
Uwl radio program featuring Raymond Gram Swing
prominent news commentator, is now heard every
Monday and Thursday evening instead of every Mon-
day and Friday evening. The time of the broadcasts
and the stations remain unchanged.

The Tobacco World

xi.

Largest Increase Was in Cigarettes,
but Rise Was Substantial in Other
Divisions in Revenue Stamps Sales

IGARETTES starred in the sales performance
of revenue stamps in October with a total of
nearly nineteen and two-thirds billion cigar-
ettes recorded. The actual figure was 19,632,-
466,010, as compared to 16,448,241,230 in the same
month last year, an increase of 3,184,224,780, or 19.36
per cent. Cigars of all classes registered a gain of
6.59 per cent., large cigarettes 187 per cent., or nearly
triple the volume, and snuff 3.54 per cent. Little
cigars, chewing and smoking tobacco suffered slight
losses. These figures, which cover U. S. products
alone, are from the Supplement to the Tobacco
Barometer of the Tobacco Merchants Association of
the United States.

Cigars of all classes in the U. S. totaled 621,989,890
as compared to 583,508,410, a rise of 38,481,480, or 6.59
per cent. The Philippine Islands total was 20,757,685,
as compared to 19,509,707, an advance of 1,247,978, or
6.4 per cent. The grand total, exclusive of Puerto
Rico, for which none of the figures are available, was
642,747,575, as compared to 603,018,117, an increase of
39,729,458, or 6.59 per cent.

Class A cigars in the U. S. totaled 542,102,265, as
compared to 504,259,330, a gain of 37,842,935, or 7.5
per cent. The P. I. gain of 1,234,790 was below that
in percentage, so that the net increase for the class

Product October, 1941

Cigars:

Class A —

United States 542,102,265 -f-

Philippine Islands .. 20,685,795 -}-

Total 562,788,060 +

Puerto Rico (a)

Class B —

United States 5,970,180 +

Philippine Islands . . 10,440 —

Total 5,980,620 -h

Puerto Rico (a)

Class C —

United States 66,750,595 —

Philippine Islands .. 20,425 —

Total 66,771,020 —

Puerto Rico (a)

Class D —

United States 6,275,240 -f-

Philippine Islands . . 12,525 -f-

Total 6,287,765 +

Puerto Rico (a)

Class E —

United States 891,610 -f

Philippine Islands .. 28,500 4-

Total 920,110 4-

Puerto Rico (a)

December, 1941

Increase or Decrease
Quantity Per Cent.

37,842,935
1,234,790

7.50
6.35

39,077,725

7.46

912,423
17,687

18.04

894,736

17.59

1,121,965
1,645

1.65

• • • •

1,123,610

1.65

638,339
11,025

11.32

649,364

11.52

209,748
21,495

30.76

231,243

33.57

was 39,077,725, or 7.46 per cent.

Class B cigars in the U. S. totaled 5,970,180, as
compared to 5,057,757, a rise of 912,423, or 18.04 per
cent., which was reduced to 894,736, or 17.59 per cent,
through a P. I. loss of 17,687.

Class C cigars in the U. S. totaled 66,750,595, as
compared to 67,872,560, the only loss to mar the per-
fect score of cigars. The decline amounted to 1,121,965,
or 1.65 per cent. A P. I. loss boosted the class decrease
to 1,123,610.

Class D cigars in the U. S. totaled 6,275,240, as
compared to 5,636,901, a gain of 638,339, or 11.32 per
cent., which was raised to 649,364, or 11.52 per cent,
by a P. I. increase of 11,025.

Class E cigars in the U. S. totaled 891,610, as
compared to 681,862, a rise of 209,748, or 30.76 per
cent. The class gain, after the addition of the P. I.
figures reached 231,243, or 33.57 per cent.

Little cigars totaled 14,693,140, as compared to
15,393,000, a loss of 699,860, or 4.55 per cent.

Large cigarettes totaled 214,600, as compared to
74,795, an increase of 139,805, or 186.9 per cent.

Snuff gained 126,170 pounds, or 3.54 per cent.

Chewing and smoking tobacco totaled 28,485,698,
a decrease of 2,664,316, or 8.55 per cent.

Following are the comparative figures :

Product October, 1941

Total All Classes —

United States 621,989,890

Philippine Islands .. 20,757,6*5

Grand Total .... 642,747,575
Puerto Rico (a)

Little Cigars:

All United States . . . 14,693,140

Cigarettes :

United States 19,632,466,010

Philippine Islands . . 22,000

Total 19,632,488,010

Puerto Rico (a)

Large Cigarettes:

United States 214,600

Philippine Islands ..

Total 214,600

Puerto Rico (a)

Snuff (lbs.):

All United States •3,693,671

Tobacco (chewing and
smoking) (lbs.):

United States 28,485,698

Philippine Islands

Total 28,485,698

»

(a) No statistics for October, 1941,
Puerto Rico available at this time.

+

Increase oi
Quantity

38,481,480
1,247,978

39,729,458

'Decrease
Per Cent

6.59
6.40

+

6.59

—

699,860

3,184,224,780
43,800

3,184,180,980

4.55

+

19.36

-f

19.36

+

139,805

+

139,805

+

126,170
2.664,316

3.54

—

8.55

• • • •

■

2,664,316

8.55

on tax-paid products from

"X

Gains Substantial in 1941 to Date

Spotlight, Held by Cigarettes for
First 10 Months of the Year, Shared
by Cigars, Little Cigars and Snuff

S in the month of October alone, so in the ten
months of 1941 to date, cigarettes held the
center of the spotlight for the volume and per-
centage of increase over the corresponding
period of last year. The figures, as reported in the
Supplement to the Tobacco Barometer of the Tobacco
Merchants Association of the United States, show that
during the first ten months of this year revenue stamps
were sold covering 173,064,422,500 cigarettes. This
total compared with 152,500,857,866 in the first ten
months of last year, the increase amounting to
20,563,564,634, or 13.48 per cent. Also as in the Oc-
tober report, the P. R. figures were omitted because
unavailable.

Cigars of all classes in the U. S. for the period
totaled 4,769,416,856, as compared to 4,498,280,159, a
gain of 271,136,697, or 6.03 per cent. The Philippine
Islands total was 159,379,902, as compared to 179,268,-
987, a loss of 19,889,085, or 11.09 per cent. Combined
total was 4,928,796,758, as compared to 4,677,549,146,
an increase of 251,247,612, or 5.37 per cent.

Class A cigars in the U. S. totaled 4,262,709,395,
as compared to 4,036,734,615, an advance of 225,974,-
780, or 5.6 per cent. This was reduced to 206,274,375,
or 4.89 per cent., by a P. I. loss of 11.04 per cent.

Class B cigars in the U. S. totaled 35,887,213, as

Product

Cigars :

Class A —

United States . . .
Philippine Islands

1st 10 Mos.
Cal. Yr. 1941

4,262,709,395 -f-
158,783,310 —

Increase or Decrease
Quantity Per Cent

Total 4,421,492,705 +

Puerto Rico (a)

225,974,780
19,700,405

206,274,375

5.60
11.04

4.89

Class B —

United States

Philippine Islands

35,887,213 +
160,307 4-

Total ..
Puerto Rico

36,047,520 +
(a)

2,265,565
42,318

2,307,883

6.74

6.84

Class C —

United States . . .
Philippine Islands

433,498,561 +
310,740 +

Total ..
Puerto Rico

433,809,301 +
(a)

37,617,781
77,433

37,695,214

9.50

9.52

Class D —

United States . . .
Philippine Islands

33,736,448 4-
51,7*5 —

Total ..
Puerto Rico

33,788,203 +
(a)

4,587,550
17,436

4,570,114

15.74

■ • ■ •

lT64

Class E —

United States

Philippine Islands . .

3,585,239 -f
73,790 —

691,021
290,995

23.88

Total .,
Puerto Rico

3,659,029 +
(a)

400,026 12.27

compared to 33,621,648, a jump of 2,265,565, or 6.74
Der cent-, which was raised +n 2 -^n? ««.^ nv f\ 84 por-
cent., by a P. I. increase of 42,318.

Class C cigars in the U. S. totaled 433,498,561, as
compared to 395,880,780, an increase of 37,617,781, or
9.5 per cent. A P. I. gain of 77,433 brought the class
gain up to 37,695,214, or 9.52 per cent.

Class D cigars in the U. S. totaled 33,736,448, as
compared to 29,148,898, an advance of 4,587,550, or
15.74 per cent. A P. I. loss of 17,436 reduced the gain
of the class to 4,570,114, or 15.64 per cent.

Class E cigars in the U. S. totaled 3,585,239, as
compared to 2,894,218, an increase of 691,021, or 23.88
per cent. A P. I. decline of 290,995 reduced this gain
to 400,026, or 12.27 per cent.

Little cigars totaled 123,702,353, as compared to
109,986,635, a gain of 13,715,718, or 12.47 per cent.

Large cigarettes totaled 1,438,491, as compared to
1,252,710, an increase of 185,781, or 14.83 per cent.

Snuff totaled 33,229,420 pounds, as compared to
31,750,573, a gain of 1,478,847, or 4.66 per cent.

Chewing and smoking tobacco totaled 253,435,303
pounds, as compared to 257,090,149, a drop of 3,654,846,
or 1.42 per cent.

Following are the comparative figures :

1st 10 Mo8.

Product CaL Yr. 1941

Total All Classes:

United States 4,769,416,856 +

Philippine Islands .. 159,379,902 —

Grand Total 4,928,796,758 +

Puerto Rico (a)

Increase or Decrease
Quantity Per Cent.

271,136,697 6.03

19,889,085 11.09

251,247,612 T37

Little Cigars:

All United States

123,702,353 + 13,715,718 12.47

Cigarettes:

United States 173,064,422,500 + 20,563,564,634

Philippine Islands . . 175,700 — 84,070

13.48

Total 173,064,598,200 + 20,563,480,564 13.48

Puerto Rico

Large Cigarettes:

United States

Philippine Islands .

Total

Puerto Rico

(a)

1,438,491 +
6,800 +

185,781
3,045

14.83

1,445,291 +
(a)

188,826 15.03

Snuff (lbs.):

All United States .

Tobacco (chewing and
smoking) (lbs.):

United States

Philippine Islands .

Total

33,229,420 +

253,435,303 —
25 —

1,478.847

3,654,846
25

4.66

1.42

1.42

253,435,328 — 3,654,821

♦Compiled from comparative data of tax-paid products released
monthly by Internal Revenue Bureau,

(a) Omitted due to unavailability at this time of the October
1941 Puerto Rican data.

The Tobacco World

Cigars are the
most pleasurable
and economical
form of smoking.

BAYUK BULLETIN

DeToled to the
best interests
of the men who
sell eigars.

First Issued 1929

DECEMBER, 1941

Prepared twice a month

v\

Christmas 1941

should set a new record for

GIVING CIGARS

Each year the custom of giving cigars for Christmas and CalTinney in ''Sizing Up the News" broadcasting
has become more popular— and more profitable for six nights per week . . . will tell people everywhere

-^

cigar dealers.

This Christmas should set a new record. Not only
are pay-rolls and purchasing power up— but many a
soldier and sailor will be remembered this season
with that best of all gifts for a man ... a nice box
of cigars.

Tie in your store well in advance of Christmas.
Display cigars. Talk cigars. Promote cigars— as the
ideal gift for a man. Again this year, Bayuk will sup-
port you with a nation-wide coast-to-coast campaign
of promotion.

More than 80 radio stations, carrying two famous
programs, "The Inside of Sports" with Jack Stevens,

— your customers— to "give cigars for Christmas.'

A SPECIAL
WORD OF THANKS

This Christmas marks the twelfth consecutive year
that the Bayuk Bulletin has conducted a campaign of
educating dealers and the pubhc on the desirability of
Cigars as a Gift for Christmas.

During these years, the effort has become national.
The results are now known to dealers everywhere, for
the public has reached the point where giving cigars
at Christmas has become an accepted custom.

The Bayuk Bulletin wishes to thank the many deal-
ers who have expressed appreciation for the efforts of
this page in furthering their Christmas sales of cigars.

NATHRALLY THEY'RE MILDER

A Fast Moving Number

For Greater Profits and

Greater Repeat Sales

PHILIPPINE TOBACCO AGENCY

1617 Massachusetts Ave., N. W., Washington, D. C.

HIGHLIGHTS OF FOREIGN MARKETS

HILE limited quantities of leaf tobacco con-
tinue to be received in Sweden from the United
States, the Swedish Tobacco Monopoly now
reports that available stocks of American flue-
cured have decreased enormously because of the in-
creased consumption of that type in Sweden. In view
of this situation, according to information available
in the Office of Foreign Agricultural Relations, the
Swedish Tobacco Monopoly expects to reduce the to-
bacco content of all monopoly made cigarettes, substi-
tuting paper mouthpieces for one-third of the tobacco
content. It is believed that about 1.8 million pounds
of tobacco may thus be saved for future manufacture.
The quality of tobacco in each cigarette will be the
same as before.

The use of mouthpiece cigarettes in Sweden is not
new. Prior to the World War of 1914-1918, the con-
sumption of cigarettes with mouthpieces was more than
three times that of the American type (cigarettes with-
out mouthpieces). Subsequent to the war, however,
the trend began to shift to the American type, reaching
a record of over two billion in 1940, or 95 per cent, of
the total cigarette consumption.

The Tobacco Monopoly began its expanded manu-
facture of mouthpiece cigarettes on October 1, 1941.
The paper to be used is of Swedish manufacture,
whereas paper for American-type cigarettes was partly
imported. Despite the reduced quantities of tobacco
used m the new-type cigarette, the retail price will
remam unchanged. It is stated that increased freight
8

rates and production costs are responsible for main-
taining the same price for cigarettes of smaller tobacco
content.

Sumatra Production Down

The 1941 production of Sumatra cigar wrapper
tobacco is approximately 35 per cent, below the near
normal 1940 crop, but sales and future production out-
look remain unfavorable, according to American Con-
sul John B. Ketcham at Medan. Most of the reduc-
tion results from the 25 per cent, cut in acreage, which
was made because of the closing of European markets.
Unusually dry weather over much of the district also
contributed to the decline and adversely affected qual-
ity, and the crop is expected to be somewhat inferior
to that of 1940. The production is estimated at 15.9
million pounds as compared with the 1940 harvest of
24.5 million pounds. It is anticipated, however, that
the supply of American grades in the current crop
will be near the quantity available from the 1940 pro-
duction, since the acreage was confined, so far as pos-
sible, to land that produces a higher percentage of
American grades.

Exports from the 1940 crop were limited almost
entirely to shipments to the United States (see Foreign
Crops and Markets, July 14, 1941). Unexported sup-
plies total 15.3 million pounds, and it is apparent that
much of the 1941 crop will be added to this unsold
surplus. Production plans for 1942 have not been
definitely fornmlated, but despite large carry-overs, it
is expected that the acreage will be about the same.

Sharp Decrease iif Java

The closing of European markets has resulted in
a sharp decrease in the production of domestic tvpes
of tobacco in Java. A part of the decline, however,
has been offset by increased output of American-type
flue-cured leaf to be used in place of imports from the
United States in the manufacture of cigarettes, ac-
cording to report from American Consul Thomas S.
Horn at Surabaya. The 1941-42 acreage of '^ Vorsten-
landen^' leaf is to be only about half of a normal acre-
age for this type. Large reductions are also reported
for ^^Besoeki" and other types formerly exported to
Europe.

A number of estates in the Vorstenlanden district
have devoted part of their lands to flue-cured leaf, and
it is estimated that the recent harvest of this type will
total about four million pounds. The 1941 flue-cured
production in the Bodjonegoro district, where the leaf
has been grown for some years, is above that of past
seasons, totaling about nine milUon pounds. The thir-
teen-million-pound flue-cured production for all Java
is the largest on record and compares with the pre-
war 1938 crop of only four million pounds.

Newfoundland Demand Grows

A large increase in the Newfoundland demand for
American type cigarettes started early in 1941 as a
result of defense preparations in that country, accord-
ing to information available in the Office of Foreign
Agricultural Relations. It is expected that the influx
of thousands of Americans and Canadians, in connec-
tion with naval and military bases, will increase the
population to a point that will further expand tobacco
sales during the coming year.

Although consumption of tobacco in Newfound-
land ha^ never been great, over 97 per cent, of the

\

J

•|

total has been suppUed by the United States. Con-
sumption for the fiscal year ended June 30, 1941,
amounted to 872,000 pounds, composed principally of
Kentucky fire-cured, burley, flue-cured, and Maryland.
Much of the raw material imported consists of cut
tobacco to be used in the manufacture of smoking and
chewing tobacco. It is estimated that approximately
750,000 pounds of leaf will be used for the manufacture
of tobacco products during the fiscal year 1941-42. Of

'--"■'•^ .-**A*«^ v**Aw, t^K/v^uv T:»v/,vy\jv/ |JV» 14.11V4.0 »V All Uc UCJCVl JLKJi.

plug tobacco, 205,000 pounds for cut smoking tobacco,
and the remainder for cigarettes.

The price of imported leaf tobacco averaged
thirty-two cents per pound for the year ended June
30, 1941, as compared with thirty cents the year be-
fore ; while the price of plug and cut smoking tobacco
for the two respective periods amounted to eighteen
and sixteen cents per pound. There are no restric-
tions on the importation of tobacco into Newfoundland
except customs duties, the rates for which are con-
sidered high. Tobacco consumed by the military and
naval personnel, however, is duty free.

Conditions in Iran

Approximately twenty-eight million pounds of to-
bacco were harvested in Iran in 1940 as compared with
thirty-five million in 1939, according to information re-
ceived in the Office of Foreign Agricultural Relations.
No data are yet available for the 1941 harvest, but it
is reported that due to an unfavorable growing season
and to neglect of the crop by growers, the current har-
vest may reflect a further reduction. Most of the leaf
tobacco grown in Iran must be consumed within the
country, the export market having been almost com-
pletely disrupted by the war. Before the war there
was an annual outlet of five or six million pounds of
Tumbeki (water pipe tobacco), principally to Egypt
and Iraq. This trade has been reduced to less than a
million pounds; and small quantities of the oriental
types formerly exported to the United States are no
longer moving.

Plan Increase in Rumania

Owing to the shortage of European tobacco sup-
plies, it was planned to increase the 1941 tobcaco crop
of Rumania, according to information available in the
Office of Foreign Agricultural Relations. The plans
called particularly for a greater production of high-
grade types and, in this connection, special attention
was paid to Bessarabia, where the land is said to be
well adapted to tobacco cultivation. Attempts are be-
ing made particularly toward the development of
several types which were formerly imported into Ger-
many, in order to offset the prevailing shortage of
overseas supplies. The planned area in Rumania was
increased by about 30 per cent, and included 41,167
acres. The yield from this area is reported to have
been about 25.8 million pounds, as compared with 20.9
million pounds in 1940.

Consumption in Rumania declined in 1940 by
about 8 per cent, and amounted to approximately 25.4
million pounds. The decline was said to have been
due primarily to territorial losses, but it was some-
what offset by the large-scale mobilization of men for
army service and by the additional cigarette consump-
tion of German troops in Rumania. The tendency to
smoke cigarettes rather than cut tobacco continued

December, 1941

A Gift EVERY Smoker will

appreciate!

Boxes of 50, 25

and 10

in a ^vide variety

of sizes.

ELPifflBlcro

Jorreal enjoyment

throughout the first quarter of 1941. As the produc-
tion and sale of tobacco are State Monopolies in
Rumania, there is no free market for the sale of leaf
and cut tobacco. Prices paid to growers are estab-
lished by the Monopoly office, according to grade and
variety, and these averaged 24.28 lei per kilogram
(7.8 cents per pound) during 1939, and 30 lei per kilo-
gram (9.4 cents per pound) during 1940.

Market prospects for the Rumanian crop this fall
are said to be bright, owing not only to the shortage
of overseas supplies, but to the fact that the export-
able surplus of some European producing countries
will be smaller. In addition to an increased crop in
1941, Rumania is reported to have some important
stocks, which may be disposed of at advantageous
prices.

Sweden Reduces Output

As a result of continued shortage in the supply
of American tobacco, the Swedish Tobacco Monopoly
has found it necessary to reduce its output of pipe
tobacco to only two brands, according to reports re-
ceived in the Office of Foreign Agricultural Relations.
This is the second effort made by the Monopoly to
conserve supplies of raw tobacco. It was reported re-
cently that, beginning October 1, the Monopoly would
reduce the weight of all cigarettes by substituting
paper mouthpieces for one-third of the tobacco con-
tent, and thus effect an annual saving of about 1.8
million pounds of tobacco. In view of the present

(Continued on Page 11)

j

Mr. Dealer:

FOUR EXTRA COUPONS

are packed in each carton of Raleigh plam
ends. Save these valuable coupons for cash or
one of the seventy luxury premiums.

Brmn & mUiamscn Tcbacec Ccrttrahm

UMOHMAM

TUNI W Red SWton and Onie
Nelion-every Tuesday nighl,
co»,-t^oa.. NBC JW network.

COMPLITI rOKIR SIT . .

A«k the B&W talesman fori supply
of the new full color catalogs show
ing all the luxury premiums.

Stocks of Leaf and Cigar Filler Types

TOCKS of leaf tobacco owned by dealers and
manufacturers in the United States and
Puerto Rico on October 1, 1941, totaled
2,937,413,000 pounds compared with 2,716,910,-
000 pounds on October 1, 1940, an increase of 220,503,-
000 pounds. Between July 1 and October 1 of 1941
total stocks increased 13,721,000 pounds compared with
an increase of 79,088,000 pounds during the same
period of 1940.

Stocks of flue-cured tobacco on October 1, 1941,
were 1,512,564,000 pounds as compared with 1,382,178,-
000 pounds on October 1, 1940. The stocks of Type 11
were reported as 481,566,000 pounds ; Type 12, 570,055,-
000 pounds; Type 13, 321,624,000 pounds; and Type
14, 139,319,000 pounds on October 1, 1941.

Stocks of all types of fire-cured tobacco were re-
ported as 172,241,000 pounds on October 1, 1941, com-
pared with 132,223,000 pounds on October 1, 1940. Vir-
ginia fire-cured. Type 21, stocks were reported as
30,494,000 pounds ; Type 22, 100,188,000 pounds ; Type
23, 41,043,000 pounds ; and Type 24, 516,000 pounds.

Burley stocks were nearly 33 million pounds
higher on October 1, 1941, than they were on October
1, 1940. The October 1, 1941, report shows 696,545,000
pounds. Maryland tobacco. Type 32, stocks were re-
ported as 46,868,000 pounds on October 1, 1941.

One Sucker stocks on October 1, 1941, were
32,367,000 pounds; Green River, 30,611,000 pounds;
Virginia sun-cured, 3,238,000 pounds; Eastern Ohio,
893,000 pounds; Perique, 961,000 pounds; other mis-
cellaneous domestic, 873,000 pounds; and foreign-
grown cigarette and smoking tobacco (Turkish and
other) 99,487,000 pounds.

Stocks of American-grown cigar-filler types of to-
bacco amounted to 183,738,000 pounds on October 1,
1941, an increase of over 11 million pounds over the Oc-
tober 1, 1940, stocks. Type 41, Pennsylvania Seedleaf
stocks on October 1, 1941, were 101,509,000 pounds. Of
this total over 76 million pounds were binders and
fillers, and about 25 million pounds were stemming
grades or lower. Type 42, Gebhardt, stocks on October
1, 1941, were 18,754,000 pounds; Type 43, Zimmer,
11,205,000 pounds ; Type 44, Dutch, 7,350,000 pounds ;
Type 45, Georgia and Florida sun-grown, 2,288,000
pounds ; and Type 46, Puerto Rican, 21,215,000 pounds
in the United States, and 21,417,000 pounds in Puerto
Rico.

10

The cigar-binder type stocks, some of which are
used for wrappers, were about a million pounds higher
on October 1, 1941, than they were on October 1, 1940.
Total binder type stocks were reported as 124,878,000
pounds on October 1, 1941. Type 51, Connecticut
Broadleaf stocks, were reported as 21,535,000 pounds ;
Type 52, Connecticut Havana Seed, 23,746,000 pounds ;
Type 53, New York and Pennsylvania Havana Seed,
2,767,000 pounds; Type 54, Southern Wisconsin,
36,762,000 pounds ; and Type 55, Northern Wisconsin,
40,068,000 pounds.

Shade-grown wrapper type stocks were reported
as 12,942,000 pounds on October 1, 1941, with 6,893,000
pounds of Connecticut Shade, and 6,049,000 pounds
of Georgia and Florida Shade.

The foreign-grown cigar-leaf tobacco stocks in the
United States on October 1, 1941, consisted of 9,798,000
pounds of Cuba (Havana); 5,035,000 pounds of
Sumatra and Java ; and 4,221,000 pounds of Philippine
Islands (Manila). The stocks of Sumatra and Java
for July and October, 1941, shown in the report, do
not include stocks owned by the Netherlands Indies
Produce Corporation in the free trade zone and in
transit.

The figures quoted for type totals are the sums
of unstemmed and stemmed leaf as reported. Tables
are included showing stocks on a farm-sales-weight
basis, and stocks owned by dealers and manufacturers
separately. The detailed report shows all stocks sub-
divided according to groups recognized in tlie trade.

BARRY WOODS' RECORD

Barry Wood, master of ceremonies and singing-
star of ' ' Your Hit Parade, ' ' started his third term in
that double-barreled post with the broadcast of Satur-
day, November 8, over 109 CBS stations. His two
full years on the '^ Parade'' give Barry one kind of
record — for no other vocalist has remained on the
program that long. But, on another front, lie promises
to be America's cracker jack defense bond salesman;
he introduced ''Any Bonds Today" and ''Arms for the
Love of America" in a special broadcast, recorded
them and has been singing the two numbers on pro-
grams in behalf of the United States Treasury De-
partment. "Your Hit Parade" is sponsored bv the
American Tobacco Co. for Lucky Strike cigarettes.

The Tobacco World

i

HIGHLIGHTS OF FOREIGN MARKETS

(Continued From Page 9)

tendencies toward panic purchases of cigarettes, the
Monopoly has started a monthly ration of all tobacco
products sold to retailers.

Despite existing legislation to the contrary, a de-
cree was issued on September 10, 1941, by the Gov-
ernor General of Algeria authorizing the harvesting,
curing and processing of tobacco suckers, according to
a report received in the Office of Foreign Agricultural
Relations. Growers must put in a declaration of their

ately the picking of the first growths have been com-
pleted.

In order to make up for the short crop in 1940,
which was only about two-thirds of the average pro-
duction, and, in response to an increased demand, the
objective set by Algerian producers in 1941 was a crop
of approximately fifty million pounds. With favorable
weather conditions, this goal would not have been im-
possible, as the growers had realized high prices in
1940. The area suitable for tobacco production is
limited in Algeria, however; hence the necessity of
harvesting the second growth to fill the greater re-
quirements of France, whose tobacco producing area
is now occupied by Germany.

Honduras Crop SuJBfered

Satisfactory production statistics are not avail-
able for the 1941 tobacco crop of Honduras, but there
are unconfirmed reports that the Copan crop, supply-
ing at least three-fourths of the total production, suf-
fered from bad weather during the growing season,
according to a report received in the Office of Foreign
Agricultural Relations. As larger sales of Honduran
made cigarettes during 1940 encouraged the growers
to plant more than their usual crop, however, it is prob-
able that the current harvest in March was not far
below normal. The latest official information concern-
ing production was that of 1939, quoting a crop of
approximately 2.4 million pounds from an area of 3047
acres.

The principal tobacco producing area of Honduras
is located in the Departments of Copan and Santa
Barbara. Small subsidiary areas are scattered around
the southern portion of the country. In addition to
the native types, various types from imported seed
(principally American flue-cured) have been grown on
a small scale during recent years with but little suc-
cess. The tobacco planting season usually begins in
October, and the crop is marketed in March and April.

Tobacco production in Honduras is conducted on
a very small scale, the producers generally operating
on a modified sharecropper basis. The leaf is usually
bought up by the merchant or landowner at a uni-
formly low price per pound, whereupon it is classified,
baled and sold to a manufacturer. One prevailing ex-
ception to this practice is that the grower frequently
rolls his entire crop into a cheap grade of cigars, which
he sells directly to a local or other retail agent. Thus,
large carry-overs are seldom found in the possession
of growers and middle men.

Prices paid for native leaf tobacco have not varied
materially in the past few years. In the Copan dis-
trict, average wholesale prices per pound for 1941 were
quoted as follows: Copan No. 1, ten to twelve cents
(United States) ; Copan No. 2, eight to ten cents; and
Copan No. 3, six to eight cents. Prices of other leaf

December, 1941

P. LORILLARD COMPANY, Inc.

119 West 40th Street • New York City

Is offering an unusually attraclive line of Christmas Wrapped
Packages this year, , . packages that will help you sell Merchandise

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

Make tobacco mellow and smooth in character
and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BETUN. AROMATIZER. BOX FLAVORS. PASTE SWEETENERS

FRIES & BRO., 92 Reade Street, New York

CIGAR BOXES

1

Tel. Algonquin 4-9532

,115^^^^

EsUbllshed 1875

••7-641 BASTimST.

The TOBACCO WORLD

is a good advertising: medium for all tjrpes of
tobacco products and smokers' requisites.

//

rv

in the central district ranged from twelve to fifteen
cents per pound.

Prices of domestic tobacco products are consistent
with the low prices paid for leaf. Domestic cigarettes
retail at five to twenty-five cents per package of
twenty ; and domestic cigars, at one to 2.5 cents each.
Imported cigarettes are higher, selling for about thirty-
seven cents per package of twenty.

A large part of the retail price of imported to-
bacco consists of various duties and taxes, which limit
foreign competition almost to the point of exclusion.
The present duty on all imported leaf except Sumatra
and Java wrapper is $1.84 per pound. Sumatra and
Java wrappers are imported at a rate of only twenty-
three cents per pound. There are, in addition, a leaf
surtax of 10 per cent, ad valorem, a road tax of 1 per
cent, ad valorem, and a wharfage charge of 1.25 cents
per pound. Imported cigarettes pay $2.27 per pound
for importation, 10 per cent, surtax, 1 per cent, road
tax and 1.25 cents per pound for wharfage, etc. The
excise tax on tobacco leaf is ten cents per pound; and
on cigarettes, six cents per package of twenty. There
are also municipal taxes in some cities.

Although there is a reason to expect a slight rise
in the level of the tobacco industry similar to that in
other countries, the general contraction of the Hon-
duran economy, developing as a partial result of the
world political conditions, tends to discount such re-
ports, at least for the near future. The successful
growing of native leaf suitable for cigar wrappers in-
dicates a probable decrease in imports for this pur-
pose. Many local dealers believe that some imported
types, especially Virginia tobacco, can be grown in
Honduras successfully. The high tariffs and trans-
portation costs are expected to continue to limit Amer-
ican imports to small quantities.

For many years Honduras has maintained a rela-
tively important export trade with El Salvador in leaf
tobacco and cigars. Approximately 2.1 million pounds
of leaf and 55.9 million cigars were exported during
the year ended March 31, 1941 — practically all to El
Salvador. The tobacco export trade is far more im-
portant than domestic consumption in Honduras. Con-
sumption of domestic leaf in Honduran factories is
estimated to have averaged only about 377,000 pounds
during the past four years (1938-1941). As the im-
port trade is not important, the annual Honduran crop
for that period must have averaged about 2.5 million
pounds.

HIGH TAXES IN GERMANY

Large war tax increases have been added to the
prices of tobacco and liquors in Germany. Secretary
of State Keinhardt said the increases are intended to
reduce consumption.

The tax on tobacco will be raised from 20 to 50
per cent., those on liquors from three marks (about
$1.20) a liter to four (about $1.60), and on champagne
from one mark (about forty cents) to three. A liter
is about a quart. Beer, as the drink of the ** small
man, ' ' will not be affected.

NATD CONVENTION NEWS

HE forthcoming convention of the National
Association of Tobacco Distributors, to be held
at the Palmer House, Chicago, January 13th
to 17th, will have special significance because
of the fact that it marks the tenth anniversary of the
organization, and the occasion will be celebrated with
a number of unusual special events. The activities
will be in charge of the founders' board of the N. A.
T. D., of which Bert Cunningham, of the Henry Straus
Company, Cincinnati, Ohio, is chairman.

One of the outstanuing xeatures win be the
founders' event, to be held on Wednesday, January
14th, when a special reception and luncheon will be
tendered to all members of the N. A. T. D. who have
been continuously active in the association since its
inception a decade ago.

Inasmuch as a very large number of distributing
houses are eligible to be included as founders, it is
expected that the luncheon will have a very substan-
tial attendance. Several surprise features have already
been arranged for this occasion.

Another activity of the founders' board is to ar-
range a reception and luncheon for the manufacturers
who have participated every year in the N. A. T. D.
convention exhibits. The board feels that special
recognition is due these manufacturers for their loyal
and consistent support of the association's activities.

Mr. Cunningham, who heads the board, is the
head of one of the key distributing organizations in
the middle west and has taken a prominent part in
the association activities at all times. He has been
associated with the Henry Straus Co. since January
1st, 1918, and prior to that time was connected with
The Best and Russell Company and the General Cigar
Company in Chicago. The Henry Straus Co. cele-
brated its sixtieth anniversary in 1940 and David
Straus, the president, is a nephew of the original
founders of the company, Henry and Charles Straus.

Other members of the founders ' board are : Samuel
D. Asher, Asher-Wyoming Co., Cheyenne, Wyo. ;
Henry Brenner, M. Brenner & Sons, Harrisburg, Pa. ;
Paul Brogan, Yahn & McDonnell Cigars, Philadelphia,
Pa. ; Albert Cassel, Sam Cassel Co., Chicago, 111. ; Ed-
ward Costello, Costello Bros., Providence, R. I. ; Clyde

L. Davis, Old Dominion Tobacco Co., Norfolk, Va. ;
R. 0. Downie, The Samelson Co., Inc., Memphis, Tenn. ;
Charles Eden, F. H. Crygier Tobacco Co., Hartford,
Conn. ; Louis Ehrlich, Rothenberg & Schloss Cigar Co.,
Kansas City, Mo.; W. B. Gibson, Corr-Williams To-
bacco Co., Jackson, Miss.; Bernard Kirsch, New Jer-
sey Tobacco Co., New York, N. Y.; H. J. Lagonegro,
Elmira Tobacco Co., Elmira, N. Y. ; John Loughran,
D. Loughran Co., Washington, D. C; Edgar Mercy,
J. V. Payne, Inc., Yakima, Wash. ; Fred Meyers, Flaks,
Inc., Denver, Colo.; John R. Moser, Hemenway &
Moser Co., Salt Lake City, Utah; V. H. Nalbandian,
Chaffee & Co., Inc., Detroit, Mich.; A. Paul Owen,
Chambers & Owen, Janesville, Wis. ; Richard C. Pin-
ney, H. E. Shaw Co., Worcester, Mass. ; W. B. Poin-
sett, Myers-Cox Co., Dubuque, Iowa ; Sam Wasserman,
B. Wasserman Co., New York, N. Y. ; and Louis
Weksler, Ponca Wholesale Mercantile Co., Amarillo,
Texas.

The Tobacco World

\

1

1

HEAP FINE RADIO SHOW

MONMY NI6HTS. CoUlMlllA BROAPCASTIHa SYSTEM

MODEL TOBACCO Presents

one of radio's outstanding hits

fAODEVS ''GAY NINETIES REVUE''

Starring BEATRICE KAY, Soubrette
JOE HOWARD, Master of Ceremonies

You and all your customers will like it

REYNOLDS XMAS PROMOTION

Bidding for Christmas holiday business, R. J.
Reynolds Tobacco Co. is boosting Camel cigarettes and
Prince Albert smoking tobacco with advertising and
promotion in virtually every selling medium.

Special Christmas advertising in leading maga-
zines, newspapers and comic supplements, and special
radio commercials on the Reynolds network programs,
feature Camels and Prince Albert as ideal gifts for
smokers.

Advance releases reveal the famous Camel carton
of ten packages of twenties in a gay new Christmas
wrapping which carries its own personal greeting card.
Another Camel gift package featured in large full-page
advertisements is a unique package in the shape of a
house, gaily trimmed for the season even to the snow
on the roof. This novel package contains four of the
Camel ^*flat fifties.^' It, too, has its own gift card and
requires no special wrapping.

Prince Albert — ''the national joy smoke'' — is
faetured in a choice of two handsome gift packages.
One is the ever-popular one-pound tin of Prince Al-
bert. The other is a colorful, eye-catching package
containing a pound of Prince Albert in a real glass
humidor; actually two gifts in one because the glass
humidor can be used long after the original gift of
Prince Albert has been smoked.

For the more modest purse, the large one-pound
tin of George Washington smoking tobacco is offered
in an eye-appealing holiday wrapping sure to catch
customers ' attention in any gift display.

The Reynolds promotion features both Camels and
Prince Albert as specially welcome gifts for men in
the service. Actual sales figures in post exchanges,
sales commissaries, ships' stores, ships' service stores
and canteens show Camel is one of the favorite cigar-
ettes with men in the Army, the Navy, the Marines
and the Coast Guard, the firm states, and adds that
Prince Albert is a big favorite among the pipe smokers
in the service.

With all indications pointing to the biggest Christ-
mas shopping season in a decade, dealers everywhere
are stocking up early and well with Camels, Prince
Albert and George Washington.

December^ 1941

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter
It's Lighter
It's Better

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 68 years
15 Washington St. Newark, N. J.

Eatabliihcd 1886

"BEST OF THE BEST"

Maaofacturad

^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Kto W^at, Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Quality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit, Mich.

Hellam, Pm.

Hanover, Pa.

Philadelphia, Pa.

Wheeling, W. Va.

J

iS

Tobacco Merchants' Association

Registration Bureau, new'toi

ison Ave.
YORK CITY

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A — An allowance of $2 will be made to members of the Tobacco 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.

TRANSFERRED REGISTRATION

STREAMLINER:— 367^34. U. S. Patent Office, for cigars,
cigarettes, smoking and chewing tobacco. Registered May 30,
1939, by John B. Murphy, Minneapolis, Minn. One-half (1/2) share
and interest transferred to Charles J* Bengelsdorf, Bay City, Mich.,
on March 7, 1941.

^Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based
on manufacturers' returns of production)

Month of August Increase or Decrease

Product 1941 Quantity Per Cent.

Plug 4,264,156 -f 39,440 0.93

Twist 501,499 + 4,842 0.97

Fine-cut Chewing 504,759 -f 48,343 10.59

Scrap Chewing 4,064,149 -f 257,398 6.76

Smoking 15,200,114 — 1,748,565 10.32

Total 24,534,677 — 1,398,542 5.39

Eight Months Ending August 31

Increase or Decrease

Product 1941 Quantity Per Cent

Plug 33,442,831 -f 647,613 1.97

Twist 3,706,793 -f 10,241 0.28

Fine-cut Chewing 3,403,817 -f 309,863 10.02

Scrap Chewing 29,495,684 + 1,119,394 3.94

Smoking 129,821,457 — 2,710,618 2.05

Totals 199,870,582 — 623,507 031

♦The production figures are in pounds, and are subject to revi-
sion until pubHshed in the annual report of the Commissioner of
Internal Revenue.

Internal Revenue Collections for October

Source of Revenue 1941 1940

Cigars .......... $ 1,567,045.07 $ 1,483,628.24

Cigarettes including floor taxes 63,807,735.22 53,475,72634

Snuff 664,860.74 642,150.25

Tobacco, chewing and smoking 5,127,590.27 5,607,937.35

Cigarette papers, tubes and leaf

penalties 179,278.32 175,483.94

IN DEFENSE OF FAIR TRADE

An active campaign in defense of fair trade laws
has been planned by the American Fair Trade Council,
according to Crichton Clarke, general counsel for that
organization. Mr. Clarke, who has been president of
the counsel since 1937, announced also that he had
retired from that office to become the organization's
legal adviser, and that the board of directors had
elected John W. Scott, of Grand Rapids, Michigan,
secretary of Bissell Carpet Sweeper Co., as his suc-
cessor. Other officers elected by the board are: John

'4

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION .r^t^^L?)*^
OF UNITED STATES '^^^^JXM^

JESSE A. BLpCH, Wheeling, W. Va President

WILLIAM BEST, New York, N. Y Chairman Executive Committee

GEORGE W. HILL, New York, N. Y Vice-President

GEORGE H. HUMMEL, New York, N. Y. Vice-President

S. CLAY WILLIAMS, Winston-Salem, N. C Vice-President

JULIUS LICHTENSTEIN, New York, N. Y 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

CIGAR INSTITUTE OF AMERICA

Ai-»i*i-*iv 1 tx* \jM\iL\j\ji ■••• ••••■•••••«•••«••••••.•••••••••••••••••••••••••• • A rcsiQcnt

AfVAkO M GARCIA . .t.., ...,.,. = ..,....»».,,,.,».....,,»,,». .Vice-President

D. EMIL KLEIN Treasurer

SAMUEL BLUMBERG Secretary

B. M. NUSSBAUM Director of Publicity

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

FRED W. WINTER Chairman of the Board

EDWARD GRAUER President

J. RENZ EDWARDS Treasurer

JOSEPH KOLODNY, 200 5th Ave., New York, N. Y Executive Secretary

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LASCHOW, 862 East Fifteenth St., Brooklyn, N. Y. President

R. L. McCORMICK, 52 Klein Ave., Trenton, N. T First Vice-President

W. H. KOCH, 1404 Mt. Royal Ave., Baltimore, Md Second Vice-President

ALBERT FREEMAN, 25 West Broadway, New York, N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

ERIC CALAMIA, 233 Broadway, New York, N. Y President

CLIFFORD M. DAWSON Treasurer

MALCOLM FLEISHER Secretary

SEIGFRIED F. HARTMAN Counsel

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA,
INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA President

WALTER E. POPPER Treasurer

SAMUEL BLUMBERG General Counsel

Executive Committee— Alvaro M. Garcia (Ex-officio), Thomas C. Breen, Harley W.

Jefferson, D. Emil Klein, Walter E. Popper, Harry C. Carr, and Arthur A.

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion, Pa President

ARTHUR McGUIGAN, Red Lion, Pa Vice-President

RUSSELL S. STINE, Red Lion, Pa Secretary

A. S. ZIEGLER, Red Lion, Pa Treasurer

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

ARMANDO RODRIGUEZ President

FRANCISCO GONZALEZ Vice-President

JOHN LEVY Treasurer

FRANCIS M. SACK Secretary

INDEPENDENT RETAIL TOBACCONISTS'
ASSOCIATION

BERNARD SCHWARZ President

BENJAMIN FRIEDMAN First Vice-President

?tR)Y;^^^<^^; T,^,^)^?^^ Second Vice-President

y^X^Wr9« CHAPMAN Third Vice-President

m/"r^?>Q5iiffi^^^ Financial Secretary

JUh GKOSSMAN Treasurer

BERNARD BERNSTEIN, 42 Broadway, New York, N. Y Secretary

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC.

VICTOR KORMAN President

CHAS. B. KIRWIN .............;;,..; Treasurer

LEO RIEDERS, 604 West 162nd Street, New York, N. Y '.Secretary

Wyckoff Mettler, president of the Interwoven Stocking
Co., as vice-president, and Frank L. Magel, of New
York, representing the American Booksellers Associa-
tion, as secretary-treasurer, both re-elected. The di-
rectors appointed Harry Meixell, of Ames & Norr,
New York, management and public relations coun-
sellors, executive vice-president in charge of all the
counciPs activities.

** Since the rights of the owners of trade-marked
commodities to protect fair resale prices for their
products,'' said Mr. Clarke, ''became legally estab-
lished through the passage of fair trade laws in forty-
five states and the Miller-Tydings enabling act in the
national Congress, the American Fair Trade Council
has been functioning mainly as an advisory organiza-
tion, working to create a better understanding of the
meaning and intent of 'Resale Price Maintenance.' As
a matter of fact, the principles and practices of 'Fair
Trade' have never been fully understood by the aver-
age consumer. ' '

The Tobacco World

10 «*^^ «IISS**^^''^**

i

Pi/ts on a Santa Claus Suit!

PicXxKYcd here are the
colorful King Edward
Christmas wraps — The
Double Tcn'Pac\ahove;
the box of 50 King
Edwards below. -C? -{^ ^U

Here's the natural gift for
men, especially Soldiers,
Sailors, Marines and Coast
Guardsmen — King Edward
in a gift wrap. They've seen
King Edwards advertised in
their service magazines. They
know this fine cigar and
will welcome the cheery,
Christmas-wrapped box."C?«t?
Push King Edward Cigars for
Christmas gift merchandise.
America's most popular cigar
will bring you even greater
volume and turn-over in this
gay Christmas wrapping. 'Oj-C?

JNO. H. SWISHER &> SON, INC.

Cigar Manufacturers

JACKSONVILLE, FLORIDA

't

m- J

Ike TOBACCO WORLD

extends to its readers and advertisers, to all branches of the tobacco
industry and trade— manufacturers, distributors, retailers and sales-
men of all types of tobacco products

Hearty Wishes for

and

A ^upp1$ Nfm f par

#/' ^t

CAMELS

yf There's an added pleasure in giving Camels
at Christmas. You know your gift will be so
genuinely welcome. More smokers prefer Camels
than any other cigarette. And that preference holds
for men in the Army, the Navy, the Marines, and
the Coast Guard, too! So remember those lads in
uniform . . . remember all the cigarette smokers on
your list . . . with the cigarette of costlier tobaccos
— Camels. Your choice of the package of four flat
fifties or the popular Camel carton.

PRINCE ALBERT

J^ If he smokes a pipe, a big, long-lasting pound
*'^' of cool-burning Prince Albert spells smoking
pleasure 'way into the New Year ... at camp, on
ship, at home. Prince Albert is choice tobacco, "no-
bite" treated for mildness and "crimp cut." It's the
National Joy Smoke. There's no other tobacco like
it. Your local dealer has two handsome Prince
Albert "specials". .. the pound tin (above) or the
special glass humidor jar. (The humidor itself makes
a handsome gift!) Get yours today.

R. J. Reynolds Tobaoco Company, Winston- Silem.N.C.

V \^ .A

IJN^Ik ifiiTidlf^fi

1

GIFTS THAT ARE SURE TO PLEASE IN BEAUTIFUL CHRISTMAS WRAPPERS