• '>.^M«>{^' 3 J 0 )»? \\\Mi ^»]«V;: »'3. 0. 0 1/ » •"•v>.;aj'.-.'.''^: ^ " -»/» ' .>^>. >^''' o '•. • ' ' /-^^v^ ^•: ■ A 1 t 1 ^^^^^^. H J J ^4 c^^^ ft „ 'f (^ ' - . o :.o.^° '^/t, . ^ O' ' ,'\ o'o . .\a "^^^".^^ ^IvYnt- .. "/,«»:4^». "s^*^:- -. /'fl "^^^fe. ^ / . '}Vo\' • <%^*' '«• 1 *" ^:-- MICROFILMED 1998 Penn State University Libraries University Park, PA 16802-1805 USAIN STATE AND LOCAL LITERATURE PRESERVATION PROJECT: PENNSYLVANIA Pattee Library Funded by the NATIONAL ENDOWMENT FOR THE HUMANITIES Reproductions may not be made without permission from The Pennsylvania State University Libraries COPYRIGHT STATEMENT The copyright law of the United States - Title 17, United States Code - concerns the making of photocopies or other reproductions of copyrighted material. Under certain conditions specified in the law, libraries and archives are authorized to furnish a photocopy or other reproduction. One of these specified conditions Is that the photocopy or other reproduction Is not to be "used for any purpose other than private study, scholarship, or research." If a user makes a request for, or later uses, a photocopy or reproduction for purposes In excess of "fair use," that user may be liable for copyright infringement. This Institution reserves the right to refuse to accept a copy order if, in Its judgement, fulfillment of the order would Involve violation of the copyright law. Master Negative Storage Number PStSNPaAg188 CONTENTS OF REEL 188 1) The Tobacco world, v. 53, 1933 MNS#PStSNPaAg188.1 2) The Tobacco world, v. 54, 1934 MNS# PSt SNPaAg188.2 Title: The Tobacco world, v. 53 Place of Publication: Philadelphia, Pa. Copyright Date: 1933 Master Negative Storage Number: MNS# PSt SNPaAg188.1 <21 12602> * Form:serial 2 lnput:HHS Edit:FMD 008 ENT: 980724 TYP: d DT1: 19uu DT2: 19uu PRE: m LAN: eng 037 PSt SNPaAgI 53.1-190.5 $bPreservation Office, The Pennsylvania State University, Pattee Library, University Park, Pa 16802-1805 090 20 Microfilm D344 reel 153.1-190.5 $cnnc+(servlce copy, print master, archival master) $s+U22V1X1902-U22V20X1902+U22V22X1902- U22V33X1 902+U22V35X1 902-U22V51 XI 902+U22V53X1 902- U24V42X1 904+V24V44X1 904-U25V44X1 905+U25V46X1 905- U26V42X1 906+U26V44X1 906- U26V48X1 906+U26V50X1 906+U27V1 XI 907- U28V1 1 XI 908+U28V1 3X1 908-U63V6X1 943+U65V1 XI 945-U65V1 2X1 945 130 0 Tobacco world (Philadelphia, Pa.) 245 14 The Tobacco world 260 Philadelphia, [Pa. $bs.n.] 300 V. $bill. $c38 cm. 310 Monthly $bApr. 1936- 321 Weekly $b<1 902>-1 909 321 Semimonthly $bJan. 1910-Mar. 15, 1936 500 Description based on: Vol. 22, no. 1 (Jan. 1, 1902); title from caption 500 Published by Tobacco World Corp., Philadelphia, Pa., <19 >- 500 Some combined issues 500 "Devoted to the Interests of importers, packers, leaf dealers, tobacco and cigar manufacturers and dealers." 500 Occasional missing and mutilated pages 515 Vol. 22, no. 38 (Sept. 17, 1902) mismarked as v. 22, no. 37; vol. 52, no. 14 (July 15, 1932) mismarked on cover as v. 54, no. 14 533 Microfilm $mv.22,no.1 (1902)-v.22,no.20 (1902),v.22,no.22 (1902)-v.22,no.33 (1902),v.22,no.35 (1902)-v.22,no.51 (1902),v.22,no.53 (1902)-v.24,no.42 (1904),v.24,no.44 (1904)-v.25,no.44 (1905),v.25,no.46 (1905)-v.26,no.42 (1906),v.26,no.44 (1906)-v.26,no.48 (1906),v.26,no.50 (1906),v.27,no.1 (1907)-v.28,no.11 (1908),v.28,no.13 (1908)-v.63,no.6 (1943),v.65,no.1 (1945)-v.65,no.12 (1945) $bUniversity Park, Pa. : $cPennsylvania State University $d1998 $e38 microfilm reels ; 35 mm. $f(USAIN state and local literature preservation project. Pennsylvania) $f(Pennsylvania agricultural literature on microfilm) 590 Archival master stored at National Agricultural Library, Beltsville, MD : print master stored at remote facility 650 0 Tobacco industry $xPeriodicals 650 0 Tobacco $xPeriodicals 780 80 $tTobacco age 830 0 USAIN state and local literature preservation project $pPennsylvania 830 0 Pennsylvania agricultural literature on microfilm FILMED WHOLE OR IN PART FROM A COPY BORROWED FROM: National Agricultural Library Microfilmed By: Challenge Industries 402E.StateSt P.O. Box 599 Ithaca NY 14851-0599 phone (607)272-8990 fax (607)277-7865 www.lightlink.com/challind/micro1.htm .*b. >^V IMAGE EVALUATION TEST TARGET (QA-3) 1.0 I.I 1.25 1^ |5£ 116 III 2.8 |£ ■ 4.0 1.4 2.5 2.2 2.0 1.8 1.6 150mm .'/ y^PPLIED^ IIVMGE . Inc j^S 1653 East Main Street '='■ Rochester, NY 14609 USA ^^=1= Phone: 716/482-0300 -:=--^^ Fax: 716/288-5989 0 1993, Applied Image, Inc., All Rights Reserved Volume 53 1933 JANUARY 1, 1933 '/ Upon the Stability of An Organization Depends the Quality of Its Product and the Service Rendered The prosperity or poverty of -a nation depends, after all, not upon laws but upon the ability of its commerce and in- dustry to maintain its markets and thus sustain employment. The stability of any business is founded upon a definite standard of quality and the utmost in service. The stability of AUTOKRAFT BOX CORPORATION guar- antees to its customers an unvarying quality in the new im- proved AUTOKRAFT cigar box and a maximum of service. Phi la., Pa. Hanover, Pa. Cincinnati, Ohio AUTOKRAFT BOX CORPORATION n^-^'^' ^jT, Chicago, III. Lima Ohio Detroit, Mich. A NatioixWiAc Service Wheeling, W. Va. imiHimiiHiiimiimiiii imnHimnnmiiiiiiiiiT PUBLISHED ON THE 1ST AND 15TH OF EACH VONTH AT 236 CHESTNUT ST.. PHILA.. PA. 2G4555 After all ^nothing satisfies li a good cigar ke ^^ed WOODEN BOXES Are the Only Natural Humidor for Cigars. Pack your cigars in wooden boxes and preserve their delicate aroma, mellowness and flavor right up to the time they are passed over the counter to the customer. Discriminating cigar smokers prefer to select their favorite brand from a wooden box and it's good business to cater to the dealer and con- sumer by packing your cigars in wooden boxes. cc WHEN BUYING CIGARS Remember »N'f Rcgardlew o» Price THE BEST CIGARS ARl PACXED in WOODEN BOXES • ••» ' . : ..• • • ... -'lilies .•y,'Wj'A»yjivt/^:,y»y4i,v»yjlvty^^y»yjtvf/j^ Volume 53 THE TOBACCO WORLD Number 1 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the Ist and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, JANUARY 1, 1933 Foreign $3.50 AN OPEN LETTER TO THE CIGAR INDUSTRY FTER a number of meetings, the Research Com- mittee of your association has decided to en- gage the services of a neutral organization by whom the problems confronting our industry will be studied. To wit : A group of business experts called Trade Ways, Incorporated, will make a thorough survey and their report will be brought before Ihe Research Com- mittee within about sixty days. For the first time in the history of the cigar busi- ness a joint move is on its way to bring the industry out of its slump, and what is now needed is 1(X) per cent, co-operation by every firm of cigar manufacturers, cigar jobbers, cigar retailers and leaf tobacco mer- chants and their employees. Our ideas are not to spend a large amount of money in advertising; we believe an educational and promo- tional campaign is more needed, and to make this move successful we need the support of every one identified with our industry. Ijet us make a pledge to one another that we will smoke only CIGARS during the year 1933, that we will allow only cigar smoking in our establishments and that people entering our offices trying to sell us merchandise should not be made welcome while soliciting us, smoking anything else but cigars. Let us constantly talk cigars to our friends and instruct our employees to do likewise. We are making the best five and ten-cent cigars in the history of the cigar business. Let us make this fact known to the public and make them once more cigar- minded. Our association needs new members. It is the duty of every cigar manufacturer to join this movement. Eighty-five per cent, are members and we want the re- maining 15 per cent, to join. There must be no slackers in our industry ! Our problems and troubles are of long standing which cannot be corrected over night ; the best brains in our industry are working with us. Let us get out of the rut and join hands to make American Manhood Cigar-Minded! Associated Cigar Mfors. & L. T. Dealers, John H. Duys, President. LOFT CANDY REPORT Loft, Incorporated, reports for nine months ended September 30th, net profit of $58,383, after deprecia- tion, amortization, taxes, etc., equivalent to 5 cents a share on 1,073,259 no par shares of capital stock. For the quarter ended September 30th, net loss was $43,281, after taxes and charges, comparing with net loss of $7576 in the preceding quarter, and net profit of $31,- 896, equal to 3 cents a share on 1,023,209 shares, in the third quarter of the previous year. YORK COUNTY BANQUET WELL ATTENDED UK ANNUAL BANQUET of the York County Cigar Manufacturers' Association w^as held in York, Pa., on December 15th, with more than 300 members and guests present. The usual splendid dinner was served and instru- mental and vocal music was furnished by the Susque- hanna Mountaineers Jug Band. T. E. Brooks, president of the association, pre- sided as toastmaster and addressed the gathering on matters of interest and importance to the association jjnd the industry. Mr. Brooks reported that in the first ten months of 1932 cigar production in York County had shown an increase of 14,984,601 cigars as compared with the same period of 1931, but cautioned those pres- ent that if quality and profits had been sacrificed to obtain this increase, it might well prove a loss even- tually instead of a gain. Other speakers present were R. M. Pastes, of the Department of Revenue, Washington; Murray F. Snider, head of the Tobacco Division, Bureau of Inter- nal Revenue, Washington ; Albert H. Ladner, Jr., Col- lector of Internal Revenue, Philadelphia; AVilliam E, Brown, assistant to Mr. Ladner; Joseph A. Wilson, assistant chief of the income tax unit, Philadelphia, and Congressman Harry L. Haines, of Red Lion. 134 LANDLORDS CUT LIGGETT RENTS J. Solis-Cohen, Jr., president of the Liggett Land- lords' National Protective Association, told members (•f that organization at a meeting in New York Citv, on Decemlwr 28th, that 134 of the 550 landlords of the chain drug company have agreed to a 25 per cent, re- duction said to be necessary to avert receivership. He said reductions already pledged total $575,000, and in addition many landlords have offered to make 10 to 15 per cent, reductions but have not yet signed pledges. Roland S. Morris, of this city, chairman of the or- ganization, estimated that the drug chain pays $7,000,- iKK) annually in rent, and that unless $1,750,000 is vol- untarily lopped off by landlords. Federal Judge George A. Welch, of this city, will order the receivershii). He urged speed in signing the reduction agreements. Other speakers at the meeting were Morris Wolf, of this city, counsel for the organization, and John A. Brown, of Detroit. WALGREEN COMPANY DIVIDEND Walgreen Company has declared an initial quar- terly dividend of 25 cents a share on the coninion stock of the company, placing the issue on a $1 annual basis. The dividend is payable February 1st to stock of record January 10th. r)3r(l vcar THE TOBACCO WORLD January 1, 1933 Trade Notes George Stoekiii,m]»any, had a narrow escape last week when his aw ^va-^ -truck a]id com- pletely wrecked. Mrs. Lumley received sliirht injuries but is reported to be recovering ra])idly, while Mr. Lumley escaped unhurt. However. Hen was forced to purchase a new car, which is some'pn for these times. Yahn & McDonnell Cigars, local distributors of high-graresent. Plans for 11)3;] were discussed and a general spirit of optimism for the New Year was verv much in evidence. The "Ilabanello" factory ((Jeorge ZitYerblatt & Company), South Third Street, has closed a highly successfid year and the factory was kept running right up to capacity and right up to the beginning of the holidays. A good volume of orders for their to]) sizes was a very gratifying feature of the '*wind-up.'* The new *'Monticello" cigarettes, controlled by John Wagner & Sons, received a very warm reception on their introduction here just before the holiday sea- son and the first shipment was entirely sold during the first week of their reception. The "Monticello" smok- inir tobai'co, which was introduced here only a few weeks airo bv the same firm was also oversold on some of their packings. The "Royalist" factory (Urabosky Brothers, In- cori)orated). North Second* Street, has closed a very satisfactory y«'ar of operation, and the orders for holi- >s0^i!-»- 53rcl year THE TOBACCO WORLD January 1, 1933 U. S. TOBACCO CO. EARNINGS GOOD ARNIXUS of the United States Tobacco Com- pany arc, roughly, a net of around $2,70(),0(X), or about $5.r)5 a share. Net in 1931 was $3,020,779, equivalent, after preferred divi- dends, to $6.20 a share on the common stock, which was the highest since the company was formed. This was partly due to lower leaf tobacco costs, partly to the steady'demand for snulf and to increased consumption of smoking tobacco l)y former cigarette smokers. It is expected that snuiT withdrawals for Novem- ber will show a much smaller decline than the 32.8 per cent, drop in October, as comi)ared with 1931. A similar development took place a little earlier, when a 28.5 per cent, drop in July was followed by de- clines of 0.19 per cent, and 2.9 \Kn' cent, in August and September respectively. Smoking tobacco sales of the company have been holding up well. Last year the company retired 29,200 shares of preferred 'stock, leaving only 2(),onn shares of $7 pre- ferred outstanding ahead of the 457,850 shares of common. MOST SMOKES SOLD AFTER MEALS More cigarettes are sold at 8:30 x\. M., at 1 :30 P. M. and at 7:30l\ .M. than at any other hours of the day, according to a chwkui) recently reported in one of the leading tobacco pul)lications. The results of this checkup indicate roughly that most smokers are in- clined to purchase their supply of cigarettes a short time after eating their meals. In recent years, more people have been reaching for a cigarette after their meals than ever ])ef()re, many having l)een won over to this form of smoking l)y the mellow, mild flavor of the modern toasted cigarette, whose true mildness is held to result from the use of choice tobaccos which are given the ])enetit of such modern manufacturing methods as t lie t oast ing process. This tendency of men and women to relish a smoke after eating has been recognized by the writer of popular verse who said that "the best of a meal is the' smoke to follow.'' CANADIAN TOBACCO SOLD T. L. Kennedy, Canadian Provincial Minister of Agriculture, announced last week that eight million pounds of Canadian tobacco had been sold to an Eng- lish tobacco company. This order, he said, had re- lieved the situation among (Ontario tobacco growers who had been unable to sell their crops. Some weeks ago, after a conference with Colonel Kennedy, the growers planned to form a co-operative company to market the crop. In view of the English order, he said, the comjjany will not be formed until next year. ANOTHER TITLE FOR HOWARD CULLMAN Howard S. Cullman, well known partner in Cnll- man Brothers, Incorporated, 161 Front Street, Xew York, leaf tobacco dealers, has recentlv been eleete'l a director of the Xew York Title and Mortgage Com- pany. Mr. Cullman has been a commissioner of the Port of Xew York Authority since 1027, and is also a director of the County Trust Company ; president of the Beekman Street Hospital, and chairman of Gover- nor Roosevelt's committee to review medical and hos- pital problems in workmen's compensation insurance. SCHULTE ASKS HOLDERS TO ADOPT PLAN IIK Schulte chain of cigar stores last week an- nounced a plan which, in etTect, asks creditors to accept lower interest charges on fixed debt of companies in the Schulte group. The chain recently negotiated a reduction of $850,000 in annual rentals after appeal to landlords. The details of the new plan, which embraces Schulte Retail Stores Corporation, include: Holders of Schulco Company's $4,550,000 bonds are asked to \vaive sinking fund requirements. A reduction of $62,500 in annual rentals paid by D. A. Schulte, Incorporated, to another Schulte sub- sidiary, the Central Manhattan Properties, Incor- porated, is asked. This cut would necessitate the omis- sion of di\ndends on the realty company's Class A stock, but there w^ould be no reduction in interest on f Central Manhattan bonds. Holders of 45,000 shares of Huyler's of Delaware, Incorporated, preferred stock are asked to agree to a reduction from 7 to 4 per cent, of the guarantee made by Schulte Retail Stores Corporation of the dividend on such stock. The company announced that in addition to the $850,000 saving in annual rentals already provided for, a further economy of $100,000 in this connection is an- ticipated. "Wages and salaries of employees were re- duced by $200,000 annually beginning October 1st last. Under the plan, additional working capital for the companies will be provided by a secured loan of $750,- 000 from David A. Schulte for five years, bearing in- terest at the rate of 5 per cent per annum. The letter from the Schulco Company bears the indorsement of the proposal by Lehman Brothers and Redmond & Company. The letter stated that the inter- est payable on the first of the issues on January 1st and the interest payable on the Series B bonds on April 1st Avill not be paid unless and until the proposal be- ** comes operative. The committee representing the interests of Cen- tral Manhattan Properties, Incorporated, security holders, is as follows: Edmund Seymour, William B. N^oorgaard, Frederick T. Sutton and Thomas M. Claflin. TASTE FOR COSTLY TOBACCO TRAPS BOGUS PRraCE Harry Gerguson, who prefers to be knowm as '* Prince Romanoff," and who has l)een sought by Fed- eral authorities ever since it was reported that he had slipped by immiirration authorities in New York a few days ago, was found on Wednesday in New York City iX'cause of his love of a high-priced smoking tobacco. Tbe ** Prince," who has recently been released from a French prison, entered a Fifth Avenue tobacco shop to purchase some of his favorite tobacco retailing at $10 a pound and was recognized by the clerk, who notified the police. Authorities have asserted that Gerguson has passed himself off as an Eton and an Oxford graduate, a former Yale student, a victim of a ten-year sentence in a German prison, ** Prince Michael Alexander Obo- lenski, son by morganatic marriage of Alexander III of Russia," and cousin of the Prince of Wales. ^ Relating one day how he came to smoke this par- ticular brand of tobacco, he .said he was introduced to it while fox hunting with "my friend Edward — ^you probably know^ him better as the Prince of Wales." January 1, 1933 Say You Saw It in The Tobacco World 53rd year No raw tobaccos in Luckies —that's why they're so mild Copr., 1982, Th« AnMrtcMi E buy the finest, the very finest tobaccos in all the world — but that does not explain why folks everywhere regard Lucky Strike as the mild- est cigarette. The fact is, we never overlook the truth that "Nature in the Raw is Seldom Mild ' ' — so these fine tobaccos, after proper aging and mel- lowing, are then given the benefit of that Lucky Strike purifying process, described by the words — 'It^s toasted". That's why folks in every city, town and hamlet say that Luckies are such mild cigarettes. "It's toasted** That package of mild Luckies 8 53rd year THE TOBACCO WORLD January 1, 1933 News From Congress _ 'AND Fe D E R A L Departments EGl^J^ATlUX imposing heavy taxes on chain stores in tlie District of Cohimbia as an ex- ample to tile states will be pushed during the present session of Congress by Kei)resentative Celler, of Xew York. The l)ill provides a license fee of $»") per year for independent stores, with chain units taxed at a pro- gressive rate of $5 for the first store, $10 for the sec- ond, $15 for the third, and so on. '* Unless some drastic economic chanijes occur, by 1940 almost ail the retail distribution will be in the hands of chain units, with practically no independent retailers left," Congressman Celler asserted. "It is not my ])urpose to destroy chains. They represent mass distriljution, a necessary corollary of mass production. They serve an economic necessity, otherwise they never would have grown so fast. They can exist and the independent can exist, but in order to put the independent ui)on a competitive i)arity with the chain it is necessary to tax the chains so that the greater the number of units the greater will be the tax or license per store." Ct3 Ct] [TI Emergency legislation amending tlie bankruptcy law to provide a means for reorganization of corpora- tions without resort to the regular bankruptcy ma- chinery is under consideration by the judiciary com- mittees of Congress. Need for this legislation was urged upon Con- gress by Attorney General Mitchell in his annual re- port as a result of conditions which have manifested themselves since the completion by the Department of Justice of its exhaustive investigation of the bank- ruptcy situation, reported to the President last year. **In the process of industrial and commercial re- construction," Mr. Mitchell declared, ''the voluntary adjustment and reorganization of business units with- out destruction through liquidation is essential to the restoration of trade. *'The cumbersome process of corporate reorgan- ization through equity leeeiverships and mortgage foreclosures afford- no hopeful opportunity in many cases for the si>eed> i^-organization of going concerns, embarrassed by debt, even througli agreement of large majorities of their creditors." Legislation to deal with the situation has been in- troduced by Senator Hastings of Delaware, which w-ould permit reorganization after the filing of a volun- tary petition in the courts or before adjudication of an involuntary proceeding. From our Washington Bureau 622Albee Building The procedure to be followed w^ould require ac- ceptance by two-thirds of the security holders who are to be bound by the i)lan and by its contirmation if the court deemed it to be equitable, with provisions for liquidating the corporate assets in case the plan was not seasonably proposed or accepted or was not con- lirmed. An opinion upholding the constitutionality of such a plan has been rendered by Solicitor General Thatcher, of the Department of Justice, who declared that the bill is in entire harmony with the views of the United States Supreme Court as to the nature of bank- ruptcy laws. m^^^^ ^^^^^ ^^Q^ CT3 Ctj Cj3 Tax revision legislation is expected to make its appearance in the House of Representatives during January. In the first place, it will be incumbent upon the present session of Congress to provide for the con- tinuance of the gasoline tax for at least another year, and there are said to be a few administrative features of the present law that will have to be taken care of to safeguard the revenues and to prevent discrimina- tion against taxpayers. A move will be made to eliminate some of the present nuisance taxes which bring in little revenue, and i)erliaps to restore the old two-cent rate of postage, at least to the extent of applying it to letters for local delivery. Some new forms of taxation may be con- jured up to support the falling income of the Govern- ment. The House is not now expected to favor a general manufacturer,^' -ales tax, but it assuredly will be ollVred in the Senate as an amendment to any bill that passed the House. ^^^m^m a^^2^M ^^^M^m Cj] Cjl Ct3 For the first time since its inclusion in the tariff law, the American selling price is to be used as a basis of computation for tlie assessment of import duties, with the possibility that this method of equalizing costs of production at home and abroad may be more widely adopted in the near future. Kecomraendations that the American selling price lie used as the basis of duty were made by the tlnited (Continued on page 13) January 1, 1933 THE TOBACCO WORLD 53rd year DEMAND CONDITIONS IN THE BRITISH ISLES AFFECTING TOBACCO HP] consumption of tobacco products in the United Kingdom during the first five months of this year was equal approximately to that of the corresponding period of last year, accord- ing to J. B. Hutson, Tobacco Specialist of the Foreign Agricultural Service in Berlin. During January, Feb- ruary, and March this year withdrawals of tobacco for domestic consumption were v/ell below those of the corresponding months last year and it began to appear that consumption, which, prior to that time, had been maintained at a high level compared with most other countries, might decline materially. However, with- drawals during April and May were above those of the corresponding months of last year and total with- drawals for the period January to May inclusive were not greatly different from those of last year. In spite of the maintenance of domestic consump- tion of tobacco products, consumption by manufac- turers of all important types of tobacco imported from the United States has been reduced further. Imports from the United States during the first five months of this year were 25 per cent, below those of the corre- sponding period of last year. It is estimated that more than half of this decline is reflected in reduced stocks. The remainder is due, in part, to the increased use of Empire-grown tobacco, and, in part, to reduced exports of manufactured cigarettes. Flue-Cured Tobacco It now appears that the consumption of flue-cured tobacco from the United States in cigarettes smoked in the United Kingdom will be between six and ten million pounds less in 1932 than in 1931. If cigarette consump- tion during the remainder of the year should be below that of last year, the higher figure is more probable, but, if cigarette consumption should increase, the lower figure is more probable. Consumption in 1931 was approximately 125 million pounds. A large part of the increase in the 1931 Canadian cro]) of flue-cured tobacco is reported to have been pur- chased by British manufacturers. This tobacco prob- ably will displace an equal quantity of flue-cured to- bacco from the United States. Rhodesian flue-cured tobacco also has been in demand in some quarters and there may be some further displacement by this type. Due to preferential import duties and exchange rates, Canadian and Rhodesian flue-cured leaf costs manufac- turers about 20 per cent, less than flue-cured leaf from the United States and the cost of the raw tobacco, in- cluding the import duty, amounts to more than one-half the retail selling price in the case of cigarettes made from flue-cured tobacco from the United States. Cigar- ette prices are being maintained in most cases at the levels prevailing prior to the increased taxes of last year and the depreciation of the currency. In addition, new brands of lower-priced cigarettes have appeared. These cigarettes are slightly smaller and probably con- tain tobacco slightly inferior to that contained in the higher-priced, more popular cigarettes. Some brands of these lower-priced cigarettes have been on the market for several years, but the low purchasing power of consumers is resulting in more consideration being given them than formerly and it appears that they are displacing to some extent higher priced cigarettes. In general, more Empire tobacco is used in the low than in the high priced cigarettes. In 1931 approximately 145 million pounds of flue- cured tobacco were imported from the United States. In addition to that used in products consumed in the United Kingdom mentioned above, it is estimated that apjjroximately seven million pounds were exported as leaf tobacco and approximately twenty million pounds were used in cigarettes that were exported. These estimates indicate that stocks were about seven million pounds smaller at the beginning of 1932 than a year earlier. Definite data are not available by types, but such information as is available indicates that stocks of the flue-cured types from the United States have been reduced further since January 1st. Stocks of all types were 4 per cent, smaller on June 1st than a year earlier and recently imports of some other types have been large. The exports of cigarettes to China and India have declined to low levels, but exports to other countries from January to May inclusive this year were slightly above those of the corresponding period of last year. The exports of cigarettes to practically all countries declined substantially in 1931. It is probable that a part of the decline of last year and the further decline this year to China and India is due to the further de- velopment of the tobacco manufacturing industry in the importing countries. In view of the recent increase in takings by countries other than China and India and the large increase in shipments of leaf tobacco direct from the United States to China last year, further de- creases in the takings of flue-cured tobacco by the United Kingdom, due to further losses in cigarette ex- ports, may be offset by increases in takings of leaf tobacco in the United States by the countries affected. There are no indications of any marked recent change in the consumption of flue-cured tobacco in the Irish Free State. Dark Fire-cured and Air-cured Tjrpes It now appears that the consumption of Hender- son, Green River and Virginia fire-cured tobacco in the United Kingdom will be approximately two million ])ounds less in 1932 than in 1931. It is estimated that, in 1931, the consumption of these types was approxi- mately ten million pounds. In importance, these types rank in the order listed and each is expected to share in the decline. These types are consumed chiefly in roll tobacco used largely in pipes. The consumption of this class of products is not expected to be reduced materially this year, but increased quantities of Em- pire-grown tobacco are being used. Following the increase in the import duty in 1931, retail prices were increased for most of the brands made wholly or largely from dark tobacco imported from the United States. New brands, made entirely or hugely from Emj)ire-grown tobacco, were introduced bv manv manufacturers and these new brands were sold at the same or slightly lower prices than those prevail- ing for the old brands prior to the increase in the im- port duty. Sales of these new brands are increasing. The better grades of wrappers from the United States are being displaced to a less extent than are other grades. Approximately four million pounds of Paducah fire-cured, Henderson fire-cured and air-cured and (Jreen River tobacco have been used annually in the Irish Free-State in recent years. Here Empire-grown tobacco eniovs no T)referential dutv and but little change is expected in the consumption of the types mentioned during the j)resent year. Recently pur- chases for the Irish mnrket have been below normal. One of the largest manufacturers, formerly a large buver at Owensboro and Henderson, made r>racticallv no purchases last season. This firm has indicated that it expected to close its Dublin factory l)ecause of un- favorable legislation. 10 53rd vear THE TOBACCO WORLD January 1, 1933 MATCH COMPANY SUIT DISMISSED S"^ Deeoniber 20tli, Federal Jiulii^e John i\ Knox dismissed witliont prejudice a suit brought by the Irving Trust Company, a trustee in bankruptcy for the International ]\[atch Cor- poration, to set aside transfer of 350,000 shares of Diamond ^Vfatch Company stock to four banks. An action for similar relief is still pending in the New York State Supreme Court. The stock in question was posted as collateral for loans aggregating $3,800,000 which were made to Tn ternational Match. On June 23d last a stipulation was entered into, after suit to recover the collateral was started, which provided for its sale for not less than $5,162,500 and the distribution and custodianship, pending the outcome of litigation of the proceeds. After the stipulation had been entered into the stock was sold to the Diamond ^fatch Company. The suit was dismissed with the consent of oounsal for all parties. Suit against the Bankers Trust Companv anci Na- tional City Bank, in New York City, for $4,106,181 and interest, was started in the United States District Court on December 21st by Irving Trust Company, as trustee in bankruptcy for the International Match Cor- poration. The action supersedes the one against the same banks and other defendants which was dismissed on December 20th. The original suit was begun to obtain possession by the trustees of 350,000 shares of common stock of Diamond Mat-ch Company, the block having been de- posited as security for the payment of $4,000,000 loaned bv the banks to International Match. The stock has been sold since the first suit was instituted and the bulk of the proceeds are being held pending court determi- nation as to their ownership, Tn this action the trustee alleges that the amount it sues for should be used for the benefit of general credi- tors of International Match. Included in the total amount demanded is also the sum of $257,250 allegedly paid on account to the banks by International Match in discrimination asrainst other creditors and $87,500 re<»eived by the banks as divi- dends on the Diamond Match stock. Rosenberg, Goldmark & Colin are attorneys for the plaintiiT. McKESSON & ROBBINS CANCEL STOCK McKesson & Bobbins, Incorporated, wholesale drug holding company, has applied to the New York Stock Exchange for cancellation of 940,831 shares of authorized stock which were to have been used for employees' subscription, for debenture conversion op- tions and other purposes. The rights and options have expired unexercised, and the outstanding debentures have been reduced, while an increase in the conversion price has cut the amount of stock necessarv for that account. BURLEY SALES TOTAL Advices from Knoxville, Tenn., state that since the opening of burlev tobacco markets in Knox^nlle this season, a total of 1,361,698 pounds has been sold for $197,666, or an average of $14.51 a hundred pounds. December 16th sales at Greeneville totaled 323,566 pounds at an average of $14,22. ELEVEN MONTHS' WITHDRAWALS FOR CONSUMPTION — Decrease First 11 Mos, -f Increase Cal. Yr. 1932 QuantiUj Cigars : Class A — United States . . . 3,300,605,070 — 176,078,015 Puerto Rico 66,153,510 — 57,848,955 Philippine Islands 162,983,460 4- 9,802,700 Total 3,529,742,040 — 224,124,270 Class B— United States . . . 48,127,704 — 115,220,369 Puerto Kico 176,000 — 1,548,000 Philippine Islands 650,269 — 522,568 Total 48,953,973 — 117,290,937 Class C— " United States ... 783,464,970 — 497,366,774 Puerto Kico 2,807,800 — 2,271,810 Philipi)ine Islands 279,312 — 220,572 Total 786,552,082 — 499,859,156 Class D— United States . . . 52,238,030 — 29,815,614 Puerto Rico ..... 2,700 — 40,900 Philippine Islands 3,876 — 890 Total 52,244,606 — 29,857,404 Class E— United States . . . 4,319,294 ~ 7,125,277 Puerto Rico — 1,500 Philippine Islands 37,787 + 27,256 Total 4,357,081 — 7,099,521 Total All Classes— United States . . . 4,188,755,068 — 825,606,049 Puerto Rico 69,140,010 — 61,711,165 Philippine Islands 163,954,704 -f 9,085,926 Grand Total. 4,421,849,782 — 878,231,288 Little Cigars: United States . . . 266,155,294 — 60,193,733 Puerto Rico 4,250,000 — 3,250,000 Philippine Islands Total 270,405,294 — 63,443,733 Cigarettes: United States ...96,266,771,699 — 9,886,778,521 Puerto Rico 3,782,700 — 6,247,300 Pliilippine Islands 1,255,127 — 698,883 Total 96,271,809,526 — 9,893,724,704 Large Cigarettes: United States . . . 3,297,052 — 1,797,630 Puerto Rico 513,000 — 972,000 Philippine Islands 9,950 -f 8,050 Total 3,820,002 — 2,761,580 SnulT (lbs.) : All United States. 33,251,313 — 3,640,462 Tobacco, mfd. (lbs.) : United States . . . 291,317,959 — 14,315,897 Philippine Islands 517 — 592 Total 291,318,476 — " 14,316,489 January 1, 1933 Say You Saw It in The Tobacco World 53rd year TOBACCO ONE OF SEVEN MOST VALUABLE CROPS OBACCO has been an important cash crop in the United States ever since the early colonial days. No one knows just when the first tobacco w^as smoked but historical records leave no doubt that the custom is both ancient and American. The Old World, however, quickly took up tobacco smok- ing after learning its comfort and solace from the New. The Indians had been growing tobacco for years before the coming of the colonists, who began to ex- periment with the plant and to improve upon the inferior types raised by the Indians. Before long the Virginia colonists found that there was a ready market for tobacco in England and Holland, where it could be used to purchase other commodities. From this early commerce, the i)roduction of tobacco has increased steadily so that today it is one of the seven most valu- able crops in the United States. The growing of tobaeco furnishes the raw^ ma- terials for a great manufacturing industry, of which the cigarette is the leading product. Not only do the richest and the poorest in the land alike smoke cigar- ettes but, more than likely, they both reach for the same brand. As the result of the adoption of modern manufacturing methods such as toasting, the true mild- ness of the modern cigarette has made it popular with people in all parts of the United States, and the effi- ciency and economy of these methods have made the finest cigarettes available to people in all walks of life. The raw tobacco grown by the farmer is sold in auction markets, where buyers representing the manu- facturer bid for it. The buyers must be expert for only the very cream of the cro]> is wanted for a really popu- lar product, since smokers today demand quality and true mildness in a cigarette in which raw tobaccos are not present. Consequently, every operation attending the making of a cigarette is important. GILLETTE WINS PATENT SUIT The Gillette Safety Razor Company yesterday an- nounced that it had established the validity of its pat- ent in litigation with the Standanl Safety Razor Com- pany before Judge Kdwin S. Thomas in the United States District Court, Connecticut. Standard Safety Razor was enjoined from making further infringe- ments of Gillette patents and was held liable for ac- counting costs and damages. The patent involved covers a blade with cut-out corners and longitudinal center slot approximately as long as the shaving edges, the announcement stated. It is the only blade that will fit all Gillette razors. Pre- TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION .^"^Sj^juht^ OF UNITED STATES "^^^Mfl^ JESSE A. BLOCK. Wheeling. W. V« Preiident CHARLES J. EISENLOHR, Philadelphia, Pa Ex-Preaident JULIUS LICHTENSTEIN. New York, N. Y Vice-President WILLIAM BEST, New York, N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL. New York, N. Y Vice-President H. H. SHELTON". Washington. D. C Vice-President WILLIAM T. REED. Richmond, Va ..Vice-President HARVEY L. HIRST. Philadelphia. Pa Vice-President ASA LEMLEIN. New York, N. Y Treasurer CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING. Cincinnati, Ohio President CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL. Corington, Ky Treasurer WM. S. GOLDENBURG, Cincinnati, Ohio .•«,,.,..• Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS. New York City President MILTON" RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN. New York City .. ..«•,••. Second Vice-President LEE SAMUELS, New York City ^.,,, Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN. Newark. N. J President ALBERT FREEMAN, New York. N. Y First Vice-President IRVEN M. MOSS. Trenton. N. J Second Vice-President ABE BROWN", 180 Grumman Are., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN President SAMUEL WASSERMAN Vice-President THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS C. A. JUST, St. Louis, Mo President E. ASBURY DAVIS, Baltimore. Md Vice-President E. W. HARRIS. Indianapolis. Ind Vice-President JONATHAN VIPOND. Scranton, Pa Vice-President GEO. B. SCRAMBLING, CleTcland, Ohio Treasurer MAX JACOBOWITZ, 84 Montgomery St., Jersey City, N. J Secretary vioiis litit^ation won by the Gillette Company involved combination patent.^ affecting both razor and blade. The Better Made Cigar Company, 25 North Seventh Street, has been sued in Municipal Court here by J. Gans, New York, to recover $120 on a note. Suit has been entered in Municipal Court here by D. C. Kaltreider & Sons. Red Lion, Pa., against the B. & S. Cigar Company, 600 South Delaware Avenue, to recover $637 for merchandise. An involuntary petition in bankruptcy has been filed here before Judge Kirkpatrick against Abe Pet- kov, candy, cigars, etc., 329 Market Street. Creditors listed are Brandle & Smith Company, $296; American Caramel Company, $97 ; R. E. Rodda Candy Company, $147. Wade Gobel, counsel. 12 53rd year THE TOBACCO WORLD January 1, 1933 RETAIL STORE PROBLEMS So many persons are uuairare of the many aids to business which have been carefully prepared by the United States Government, and so many of those who are aware of these facilities fail to take advantage of them, that ice are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) DEPARTMENT LEASING IN RETAIL STORES License Agreement (Continued from previous Issue) 1. Department manager.— The licensee shall either devote his whole time, attention, and efforts to the operation of his department or shall provide a trained manager acceptable to the licensor to operate the licen- see's department, and either the licensee or his mana- ger shall he in attendance during all regular business hours; this department manager will be registered in the office of the licensor and approved by the licensor, and the duties of such department manager will be out- lined by the licensor. 2. Store hours. — The licensee shall operate his de- partment during su<'h hours as may be decided upon by the licensor, such hours to be in keeping with the hours of other (location) department stores; and shall have his goods uncovered and his sales people ready for business at the time of the opening of the store, and shall have a sufficient number of sales people to promptly wait on customers during all business hours of each business day. .Store hours are from . .^ to The licensor, however, has the right to change the hours. 3. Care of licensee's premises. — The licensee shall keep his department in a clean attractive condition. 4. Ordering of merchandise. — All goods and mer- chandise bought for the licensee's department in (name of store) shall be purchased and billed in the name of the licensee or in the name of the firm or corporation operating the department, or in the licensee's trade name; and no goods shall be purchased in the name of the licensor. The licensor has the risrht to inspect all bills or invoices of merchandise bought for the licen- see's department, and the order blanks of the licensee shall be such as are approved by the licensor. 5. Deliveries to purchaser. — All purchases made from the licensee's department in (name of store) are to be delivered to the place of business or residence of the purchaser, if requested by the purchaser, at the expense of the licensee, providing the place of delivery is within the limits of the city of The licensee is expected to use the delivery service designated by the licensor. 6. Record of sales. — The licensor will install such cash registers and cashiers as in the judgment of the licensor may be necessary in the licensee's department, and will decide as to what method is best for recording the sales in each department. Cash-register sales tickets are to be furnished by the licensor and must be handed out by the sales people of the licensee to the customer for every sale, or placed within the package at the time the sale is made. All sales checks and all transactions to the customer shall bear the name of the 7. Signs. — The licensee shall put up only such signs and advertisements in his department as shall have been approved by the licensor, and the licensee shall pay for said signs and advertisements. 8. One price and no substitution. — The licensee will not be allowed to have two prices on the same article or change the prices of any goods after they have been advertised or advertisements arranged for, and all goods displayed in the ^vindow must be marked at the price at which they are sold in the department, and all goods in stock must be marked in plain figures, and no deviation made to any customer from prices marked on goods. The principle of ** one price only" must prevail in every section of the building. The licensee shall not conduct any auction sale in his de- partment, nor employ any person to solicit trade from the pulilic or from patrons of the (name of store) in any other manner than is usual in the first-class depart- ment store in the city of ; the licensee shall not misrepresent the quality of the goods sold, or em- ploy any methods of salesmanship which shall be in any way objectionable or inconsistent with the operation of a high-class mercantile establishment, and shall not substitute in his department any inferior goods for goods displayed or advertised for sale, and shall not do or permit to be done anything which may injuriously affect the reputation of the (name of store). 9. Licensor not responsible for damage. — The licensor shall not be in any way responsible for any in- jury or damage done to the stock of merchandise or fixtures of the licensee, nor shall the licensor be in any way responsible for any loss, damage, or injury sus- tained through any action of the licensee's employees, or of any employee of any other licensee or tenant or other person, whether occupying space in the (name of store) or not, or of any other person. 10. Exchanges and refunds. — A uniform system of exchanges and refunds and any other matters pertain- ing to the smooth running of all departments will be installed by the licensor, and the licensee will be re- quired to conform to the general rules governing these matters. IL Special lighting.— AW lights, other than the regular lighting system of the store, which may be specially required within the space granted to the licensee for the sale of his merchandise, for adequately lighting and displaying his merchandise shall be in- stalled by the licensee and at his expense, subject to the general supervision of the licensor, and the expense of furnishing current or gas therefor shall be borne by the licensee. 12. Windoiv space and bargain tables. — The allot- ment of all window space is wholly within the jurisdic- tion of the licensor, and its judgment and decision as to the use of the window space shall be final. All aisle or "bargain" tables in the store wdll be allotted in the discretion of the licensor. (Continued on Page 14) January 1, 1933 Say You Saw It in The Tobacco World 53rd year 13 SNUFF SHOWS ONLY NOVEMBER ADVANCE HE following comparative data of tax-paid products indicated by monthly sales of stamps are obtained from the statement of internal revenue collections for the month of Novem- ber, 1932, and are issued by the Bureau. (Figures for NovemlK^r, 1932, are subject to revision until published in the annual reiK)rt ) : Products Cigars (large) — Class A No. Class B No. Class C No. Class D No. Class E No. -November- 1931 329,607,030 6,225,000 130,141,690 9,065,314 2,419,123 1932 320,027,450 4,017,630 87,190,924 6,849,236 1,088,188 Total 477,458,157 419,173,428 Cigars (small) No. 21,666,000 450,258 21 550 413 Cigarettes (large) ....No. 450,258 *" '304^992 Cigarettes (small) ....No. 7,849,803,470 7,613,941,573 Snuff, manufactured . . Lbs. 2,705,103 2,850,789 Tobacco, mf d Lbs. 25,229,734 25,148,846 Note: The above statement does not include tax- paid products from Puerto Kico and the Philippine Islands. This information is shown in supplemental statement. Ta^ Paid Products From Puerto Rico for the Month of November November Products Cigars (large) — Class A No. Class B No. Class C No. Class D .No. Total Cigars (small) No. Cigarettes (large) ....No. Cigarettes (small) No. 1931 8,278,510 104,750 587,050 4,500 8,974,810 7,125,360 1932 6,874,860 10,500 240,000 1,000,000 100,000 500,000 60,000 168,000 Tax Paid Products From the Philippine Islands for the Month of November November Products Cigars (large) — Class A No. Class B No. Class C No. Class D No. Class E No. Total Cigarettes (large) ....No. Cigarettes (small) ....No. Tobacco, mfd Lbs. Note: Quantities of tax-paid products shown in above statements are indicated by stamp sales for the month. 1931 16,911,815 90,030 58,978 960 250 1932 13,122,685 72,997 48,490 750 886 17,062,033 13,245,808 200 343,060 186 8,950 143,940 22 Comparative Statement of Internal Revenue Collec- tions for the Month of November Sources of Rrrrnue 1931 1932 Cigars Ji;l, 507,768.33 $1,218,332.08 Cigarettes 23,553,870.48 22,844,746.92 Snuff 486,918.55 513,142.09 Tobacco, chewing and smoking 4,541,484.08 4,527,025.35 Cigarette p a n e r s and tubes . . . : 118,059.05 82,985.69 Miscellaneous, relating to tobacco 35.00 402.99 LILLIAN^USSELL \ 2 U. S^OND 2 /% CIGARS CIGARS P. LORILLARD GO'S Cigars These brands formerly sold at 5c each . . . now reduced to fit today's purse . . . NEW CURRENC CIGARS 2 for 5c Establiihed 1886 "BEST OF THE BEST 99 '^^^^ A. SANTAELLA & CO. Office. 1181 Broadway, New York City FACTORIES: Tampa and Ktg Wtst. Florida News from Congress (Continued from page 8) States Tariff Commission and accepted by the Presi- dent in the case of prism binoculars, on which the 60 per QX^ni. ad valorem duty of the Hawley-Smoot tariff was found to alTord insuflicient protection to the domestic manufacturers. A\^hile the flexible provisions of the tariff law limit increases in duties to 50 per cent, of the original rates, it is pointed out that by changing the basis of assess- ment from foreign value to American selling price a much greater increase in protection can be secured, particularly in the case of commodities from depreci- ated currency countries. 14 53rd year THE TOBACCO WORLD January 1, 1933 RETAIL STORE PROBLEMS (Continued from page 12) 13. Hirinq of lieJp.—M\ employees in the licen- see's department shall ho hired and discharged by the licensee onlv through an employment office maintained in the building under the direction of the licensor, and all matters pertaining to the discipline of such em- ployees shall be handled through such employment office, but the wages of all such employees shall be paid by the licensee, and the said em])loyment shall be in the name and on behalf of the licensee, and only such help shall be employed in the licensee's department as shall be satisfactory both to the licensee and the licensor. 14. Adjusfmcut hureau. — An adjustment bureau is to be established which will be under the exclusive su- pervision and control of the licensor, and decisions made bv this adjustment bureau will be absolute and linal and binding on the licensee. All customers having complaints which can not be adjusted in the licensee's department to the entire satisfaction of the customer must be sent to the adjustment bureau for considera- tion, as it is the policy of the licensor not to allow a disappointed customer to leave the building. 15. Licensor '.'i rights in licensee's department. — The licensor or its representatives may enter the licensee's department at all reasonable times for the purpose of making any alterations or repairs to the building or any ])art of the building or premises cov- ered by licensee's department which may be deemed necessary, and the licensee shall not use the said prem- ises except for selling his merchandise, and nothing shall be done which may in any way create a nuisance or disturb any other tenant, or injure the reputation of the Imilding, or annoy other tenants occupying space on the same floor, and the licensee shall not use his department or permit it to be used for any illegal purposes. 16. No assignment of space. — The licensee shall not assign his permit or license for his department without the written consent of the licensor first had and obtained and shall not permit any transfer to any third party by operation of law% and no third person shall bv virtue of anv such assignment or transfer be- come vested with any rights under such permit or license. 17. Stationery/ and printed matter. — Any letter- heads or other printed matter which may be used by any licensee in connection with his business in the store, are to be submitted to the licensor for approval before being used. Any printed matter not so approved shall be discontinued on request of said licensor. 18. Mechanic's lien. — The licensee shall not i^ermit any mechanic's or other lien to accrue on account of the installation or repair of any fixtures in the licensee's department, and changes or repairs on licensee's fix- tures must \ye approved by the licensor. 19. Payment of salaries. — Salaries in the licen- see's department shall be paid during the forenoon of the stated pay day, so that employees may have an opportunity to spend their money in this store if they so desire. 20. Employees' discount. — A discount of 10 per cent on all regular goods must be given to employees, provided they have a shopping pass, issued by the licensor. The shopping-pass numl>er shall appear on the sales checks. On special-sale goods, the discount is optional with the manager of the department. 21. Fire and sprinkler insurance. — Fire insurance and sprinkler insurance on the licensee's merchandise, stock, and fixtures shall be taken out and paid for by the licensee. 22. Workmen's compensation insurance. — The li- censor has taken out workmen's compensation insur- ance for the protection of both the licensor and licen- see. At the end of any six-month period, or as may be determined by the licensor, a charge will be made by the licensor against the licensee, for his share of the in-emium of the policy mentioned, such charge to be based on the pay roll as returned to the office of the licensor, and at the rate determined by the insuring company as just and equitable for the licensee's share of protection under said policy, and the licensee shall pay his share of such premium from time to time as the charge is made against him. 23. Advertising copy and proof.— AW advertising copy of the licensee shall be sent to the advertising manager at least five days ])efore such advertisements are to appear in the i)ai)er, and no advertisement will be printed without the O. K. of the licensee on the proof, and licensee shall send corrected and approved proof to tlie advertising manager at least 48 hours be- fore same is to appear in the pa])er; and if for any reason licensee has not 0. K.'d proof after he has had ample time to do so, the advertisement will be run and the cost charged to the licensee. The licensee will be held resj)onsible for any errors in the advertisement and will be required to live up to whatever appears in the paper. 24. Display fixtures. — The licensee shall furnish and pay for all sign holders and disi)lay fixtures nec- essary for his department. 25. Stock for licensee's departmetit. — All case goods, etc., ordered by the licensee for his department shall be sent to the receiving clerk of the store, who will send them to the general receiving room of the store, and they are to be removed from said receiving room as soon* as possible by the licensee or his representa- tive, and no unopened cases, cartons, large packages, or empty cases will be allowed to remain over 24 hours in the receiving room of the store. No cases, cartons, or large packages will be allowed to be sent to the licensee's department, and no trucking of goods through the store will be allowed, except during hours designated by the licensor. All merchandise must be brought to the de])artment before or after the busines.s hours of the store. No part of any licensee's depart- ment is to l)e used for the storage of goods in cases, cartons, or large packages. 26. Use of the nayne of store. — No licensee will be allowed to use the name of the store on his truck or wagon without first having obtained written consent of the licensor. 27. Additional rules. — A signed copy of any addi- tional rules which may Ik? necessary in the opinion of the licensor will l>e furnished to each licensee, and only such additional rules as are signed by the licensor shall be recognized. 28. Policy of store. — In case any question as to the policy to be pursued in any one or all departments, or in case of dis])ute l)etween a customer and licensee, the decision of the licensor shall be final. 29. Penalty for violation of rules. — In the event of a violation of any of the foregoing or any additional rules of which the licensee shall have received a copy signed by the licensor, and upon notice given by the licensor or (name of store) to licensee in question, and upon failure of the licensee to correct any such viola- tion within five days from the giving of such notice, (Continued on Page 18) January 1, 1933 THE TOBACCO WORLD 53rd year 15 ENGLISH PROFESSORS IN CONTROVERSY OVER THE WORD ** STRAIGHT" IIALIj business force changes in the diction- ary or shall the professors remain in control? Does the word ** straight" — used in ref- erence to merchandise — mean ''sold without discount for number or quantity taken"! Or, does it mean ''quality unchanged, regardless of price reduc- tion for purchases in quantities of more than one"! This question precipitated a nation-wide contro- versy among professors of English, superintendents of schools, heads of normal schools and others, when the word "straight" appeared in recent newspaper adver- tising announcing "Cremos 5 Cents Straight— 3 for 10 Cents." This was disclosed in a survey conducted by Phil D. Collins, instructor of English, State Teach- ers College, Montclair, N. J., the results of which have just been made public. Many of the authorities consulted, back the use of the word "straight" in the advertisement quoted in Mr. Collins' letter, while others condemned such use of the word as "ambiguous," and as a "contradiction in terms." Among those participating in the controversy were: Reverend J. L. Carrico, C. S. C, Director of Studies, The University of Notre Dame; A. C. Baugh, Professor of English at the University of Ponnsyl- vania; Carleton Brown, secretary, the Modern Lan- guage Association of America; President W. A. Neil- son of Smith College, Northampton, Mass.; Edwin C. Broome, Superintendent of Schools, Philadelphia, Pa. In the belief that, from the broad standpoint of understanding words and their meanings, experts should clarify for the public all questions of language, with due consideration of both good usage and ex- pediency in the individual case, Mr. Collins sought the opinions of those wlio are in positions of authority on questions pertaining to the correct use of words. In his letter, Mr. Collins stated that when he had questioned the word as used in the advertisement, he was told bv the sponsors of the advertising that they had used the word "straight" because it precisely conveved the idea that they had in mind. They wished to inform the public, they told Mr. Collins, that their product "was still a five-cent cigar— that its fine qual- ity, its size, its famous perfeclo shape, all remained unchanged," regardless of the fact that they were able to offer it to smokers at lower prices when sold in quan- tities of three. Any other designation, they stated, might have put their product into another category and this thev emphaticallv desired to avoid, and they main- tained thev did avoid it by using the word "straight." "In my opinion, the word 'straight,' as used in the 'Cremo' cigar advertisements, is acceptable Eng- lish," wrote George St. Clair, professor of English at the Universitv of New Mexico. "Colloquial, it is true," he confinued, "Imt it expresses the desired idea with vigor, precision, and directness." Reverend J. L. Carrico, i\ S. C, Director of Studies, The University of Notre Dame, stated, "I think tliis is a case in which long usage has made what was in the beginning a colloquialism unquestiona])ly standard usage." "Your advertisers, as T see it, are creating a new meaning not adopting a colloquial one," said Henning Larsen, Professor of English, The State University of Iowa, lie stated that this process "injures" the old word and is, therefore, not correct. Professor W. H. Davis, of Stanford University was among those who held similar views. A. C. Baugh, Professor of English at the Univer- sity of Pennsylvania, in his answer to Mr. Collins, wrote: "I see no objection w^hatever to the use of straight in the sentence you quote. It seems to me in accordance with one of the accepted meanings of the word." Directly opposed to this point of view was that of P. V. D. Shelley, Professor of English at the same university, who stated: " 'Cremos 5 cents straight' conveys to my mind the idea that these cigars are sold at 5 cents each regardless of the quantity purchased at any one time. This I think is the usual meaning of the word in such a context, and to my mind it is a contradiction in terms to add '3 for 10 cents.' " Among the school superintendents w^ho agreed that the word "straight" as used in the advertisement was justified were: Winton J. White, of Englewood, N. J. ; John Milne, of Albuquerque, N. M. ; G. A. Stet- son, of School District of Titusville, Titusville, Pa.; J. G. Moore, of Fargo, N. D. ; R. D. Green, of Abilene, Texas, and Ralph Yakel, of Jacksonville, 111. Many other school superintendents from various parts of the country, however, were in agreement with Edwin C. Broome, Superintendent of Schools, Phila- delphia, I^a., who said: "As long as the word 'straight' has been used for many years as indicating the price of cigars without any reduction if bought in larger numbers than one, I think the best thing to do is to let it alone as long as people generally understand it." Numerous heads of schools of education and deans of business schools also concurred with this opinion. Prominent among these were W. C. Ruediger, Dean, School of Education, The George Washington Univer- sity, Washington, D. C; Waldo Wood, President of Central Normal ( 'ollege, Danville, Ind. ; J. Evan Arm- strong, President, Armstrong College of Business Ad- ministration, Berkeley, Cal.; Professor Thomas Wil- liam Noel, School of Commerce, Georgia School of Technology, Atlanta, Ga. "I have heard it used in that sense all my life ... It seems to be in very wide usage and sanc- tioned bv the dictionary," was the opinion expressed by J. W! Heyd, Head, Division of Language and Lit- erature, Northeast Missouri State Teachers College, Kirksville, Mo. "It is good usage and good English," asserted .r. Rion McKissick, Dean, School of Journalism, Uni- versity of South Carolina, expressing his belief that such use of the word "straight" is a long established and clearly understood term of trade. A group of other language experts opposed this view and claimed that the word "straight" as used in the advertisement cited by Mr. Collins was not good usage. Prominent among their number was Carleton Brown, secretary, the Modern Language Association of America, who stated that in the advertisement the word "straight" is used in a sense which directly con- flicts with his understanding of the term. "The use defined by the advertisers you mention is (luite strange to me and I do not believe that it is established usage," was the opinion expressed by President W. A. Neilson, of Smith College, Northamp- ton, Mass. BEITISH-AMERICAN DIVIDEND The British-American Tobacco Company Limited, has declared the usual interim dividend of lOd on the common stock, tax free for the fiscal years 1932-33. The dividend will be paid January 16th. 16 5.Srd vear THE TOBACCO WORLD January 1, 1933 CHRISTY MAKES FIRST TWENTY-FOUR SHEET POSTER FOR ''LUCKY STRIKES" OWAKI) ('IIAXDLKR CHHISTY, noted illus- trator ami famous })ortrait ])aiiitor, whose work lias won for him an international reputa- tion, has just completed his tirst twenty-four sheet i)oster, whieh will he display<'(l in nioi'e than 18,000 towns in the Ignited States dnrinu: the month of January. Christy's tirst ecmimereial ])aintinij: to be repro- du-ced in sueh lari^e size as a t went v-f our sheet, adver- tises *'Luekv Strike'* eiuavettes. It portrays a smart eouple in eveninu: dress liaving their after-dinner coffee and cifcarettes, the attractive, charminic ^irl holdiiiir her dainty left hand to receive the smoke rinus the handsome youth has blown in her direction. The first rinsr of smoke to reach her hand is nat- n rally that of the eniratroment rinii:. Tiie settintr shows the cotfee cui)s and a i)ackaiJ:e of "Lucky Strike" ci^"arettes. At the left of the man is the name in the familiar circle, followed by the slogan, **It's toasted." The copy is in three words: ''forever and ever. ' ' Bromiley-Ross, Tncor])orated, of 1 l^ark Avenue, Xew York City, induced Mr. Christy to ])aint the pos- ter for the initial outdoor campaign for 1^33 of the American Tobacco Company. From before the turn of the century Howard Chandler Christy was regarded by many as the leading illustrator of the United States. For more than a quarter of a century he has lield that high ])lace. In 1921 he began his work as a ])ainter of portraits al- though in 1907 he ])ainted a ])ortrait of Charles T. Shone and again in 1920 he did a ])ortrait of Mrs. Christv. In the twelve years tTiat have followed Mr. Christy has won a new rejmtatiou after a life-time speut as an illustrator. Some of the distinguislied ])eo])le whose ])ortraits Christy has placed on canvas include Presidents Hard- ing, and Coolidge, Mrs. Coolidge, Premier ^^ussolini, Chief Justife Hughes, ^[r. and Mrs. AVilliam R. Hearst, George Harvey, Senator Coleman du Pont, Amelia Earhart, ^frs. Jose])h Blake, Ca])tain Dollar, ^[rs. George Hearst, Miss ^fary Dewart, Huml)ert, Crown Prince of Italy, Prince Philip of Hesse and a host of other notables. Christy's portraits of famous actors in character include Joseph JetTerson, Richard Mansfield, E. H. Sothern, James K. Hackett, Maude Adam<, Emma Calve, Ellen Terrv and Julia ^farlowe. Now the work of this great artist will be seen from coast to coast by the man and woman in the street and the children will have a chance to study Christy's \vork for his name a])])ears on the "Lwky Strike" ])oster. ITALIAN IMPORTS DOUBLE Italy. — During the first seven months of 1932 as compared with 1931, the quantity of leaf tol)acco im- ported into Italy more than doubled, and the value almost tripled; imports amounted to 2J)C)]J4^) pounds valued Mt i:),297,r)02 lire for 1931, and :)J)90SC^(\ pounds valued at 43,316,387 lire for 1932. Total sales by the Tobacco ^fonopoly were 296,fK)7,000 lire during Au- gust, 1932, a monthly figure whidi lias not lieen reached recently if ever. Owing to the fact that oriental to- baccos are now Innng mani])nlated in Trieste, l)efore being exported to the United States, Greece is the THE TOBACCO TRADE OF NETHERLAND EAST INDIES HE CRISIS has caused the licpudation of some important tobacco merchants, operations at loss by most Sumatra tobacco campanies, and the shutting down of many cigar factories, es- pecially in the south of the Netherlands, states Ameri- can Vice Consul AV. M. Chase in a re[)ort released by the Tobacco Division of the Department of Commerce. The crisis in the United States and in Germany, two very im])ortant customers of the Xetherland East In- dian market, has depressed ])rices to the disadvantage of producers and traders. Excess stocks do not exist, but i»revailing prices bring losses. Restriction has been practiced for several years and Sumatra producers co- o]>erate in a workable plan to fix each year the extent of the vield. Prices paid by American purchasers for American sorts and also by Dutch and German cigar manufac- turers for Sumatra Sand leaf have enabled growers to take ])rofits when their operations remained, on an average, under a cost })rice of florins 1.50 j)er half kilo- gram. The good jn-ices received for fillers and binders also assisted in producing such profits. The inability of German and American interests to purchase has, however, brought sore disappointment to Sumatra growers, ])rices ])ai(l by American purchasers having declined by several llorins per half kilogram. In addi- tion, Netherlands ])urchasers nuist i)ay less as they are dependent uj)on the (Jerman maiket ; moreover, because of the increase in use of cheaper cigars, the Netherlands cigar industry can no longer i)ay high prices for the Sand leaf. The trade is also confronted with fairly important su])])lies remaining fnmi previous harvests. One of the Sumatra com])anies is reported to be exj)ect- ing a loss on its 1932 crop to be marketed in 1933. To combat the low ])rices the tobacco companies are proj)osing further cultivation restrictions, the clos- ing down of un|)rofitable enterprises and the lowering of the cost ])rice. The la Iter stc}) will prove the most ditlicult, although unem])Iovment in the Indies mav aid in etfecting it. It is expected that the snndler subscrip- tions in 1933 will increase the cora])etitive spirit and that sJiould there be a good harvest, business will 1)6 l>etter next year. As to further future j)ros])ects it is stated that the tobacco trade in The Netherlands is financially strong; that it can take tlie (piantities of- fered: and that two [)rofitable years will be sufficient to recoup recent losses although no dividends will be im- mediately j)ossible. The cost price of the 1931 Vorstenlanden crop is only about florins 0.30 per half kilogram; losses with this cro]! are therel)y less than in tiie case of other crops, and it, together with the 1!>3»0 cro]) marketed in 19.*>1, enjoyed fair success. The Ficnch Mono|)oly, as always, paid good prices, but unfortunately the Ameri- can interests made no purchases this year of Vorsten- landen, a factor reacting unfavorably on the market price. The large (pumtities of Besoeki tobacco brought • •acli year to the maiket rec<*ived poor support this year, largely b€'cause of the (Jerman crisis. It is not expected that the Besoeki companies will make much profit this (Continued on Page 17) ]»rincipai source for tobacco imported into Italy. The Cnited States ranks second, but United States sales have been much heavier this vear than thev were in 1931. — (American Consul Homer Brett.) January 1, 1933 Say You Saw It in The Tobacco World 53 rd vear 17 FREE TRADE IN IDEAS NOW HURDLES TARIFF WALLS FFICKS liave now been opened in New York by Amerika-Tnteressen, Incorporated, organ- ized as the American unit of A. G. Fuer Amerika-Tnteressen, operating also in Berlin, Paris and London. How the work of this cor|)oration helps manufac- turers in this country to surmount the tariff barriers which gridiron the world is explained in the following statement by Botho Lilienthal, president of the cor- poration: "Our method of operation is to make available to the manufacturers of one country, devices, processes and patents that have been proved successful in other countries. For manufacturers who wish to augment their incomes by obtaining business abroad, but can- not do so by exports, we negotiate agreements cover- ing production and marketing rights. This is done bv issuing licenses on a rovaltv basis or bv the out- right sale of the manufacturing and marketing rights for the country involved. In other words, we are en- deavoring to replace the export of manufactured goods to some extent by bringing the inventive achieva»ments, the engineering skill and manufacturing experience from one nation to the other. And, fortunately, there are no tariff barriers against such import and export of ideas. **Not only that, but this mode of international trade helps the unemployment situation of the country into which we introduce new ideas, because it often o[)ens new lines of mamifacture in such country and is also of benelit to the country from which we export, because of the financial results strengthening the gold reserves in this count rv. **This work is already uiuler way. A number of (ierman inventions have l)een satisfactorily placed in Kngland, and Fnglish developments are now being brought to the favorable attention of German indus- tries. Similar negotiations are under way betweeii Berlin and Paris. Kventually it is our plan to extend this exchange of ideas to cover the advantagc^ous place- ment of the ])roducts of all countries that are now experiencing difficulty in export trade. "In order to start our American company, our en- gineers ha\e selected from over 1000 offerings, about 100 devices that seem suitable for immediate exploita- tion in this country. These are in many fields and include such widelv different lines as machine tools and appliances, electrical devices, temperature indi- cators and recorders, optical instruments, advertising displays, air conditioning equipment, welding proc- esses, steel house construction, and household utensils. These are but a beginning. Additioiud products and ideas will continuously be brought here from European countries and 1 hope to take many American develop- ments successfully to Europe." MORE UNITED LEASES CANCELLED Permission to void twenty-six more leases of the cigar stores which i\w United Cigar Stores Company of America occupi<'s was granted on October 31 by Irwin Kurtz, Federal bankruptcy referee, at 1.') Park How, .\ew York City, in behalf of the Irving Trust Company, trustee. The brok(Mi leases were on New York properties at Tremont Street and Southern Boulevard, the Bronx; 2547 and 5984 Broadway: 2iV.U Eighth Avenue; 492 Lenox Avenue; Bowery and Canal Streets; 754 Third Avenue, and 793 Nostrand Avenue, Brooklyn. Other Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. ^!r/SYit/t\ir/»(irrs\ir7SYir FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE — No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD MANUFACTURING FIRM OF HAVANA QUALITY CIGARS will serve orders in any quantity to discounting dealers, at profitable prices. Satisfaction guaranteed. Address for particulars "Fair Dealing", Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco meUow and smooth in charactct and Impart a most palatable flavor rUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BHTUN. AIOIIATIZEB. BOX FLAVOBS. PASTE SWEETENEBS FRIES & BRO., 02 Reade Street, Ne>v York TOBACCO TRADE OF NETHERLANDS {Continued from page 16) yi*ai witli their ( rons; tlio VXVA crop has, however, been restrict 0(1. In sonio (juartcM's optimism is l)oiii^ voiced, the opinion beiiiir that the coh^iial tobaccos have no com- petitors; that contingent dangers do not exist; tliat to- i>acco is smoked in bad times as well as ^ood; that The Netherlands is one of the most imi)ortant tobacco markets and that the distribution system and the strong position of the traders are all favorable factors. On the other hand, some com])etent persons point to the ever-increasinij: etTort of countries to become self- sufficient in the matter of tobacco production. They cite (lermany's increase in tariffs on certain tobaccos and the lari^e increase in home culture; Italy with its practically sufficient home ]>roduction; France with its e.\|>anded colonial i)roduction; Czechoslovakia and other (H'utral Kuropean nations, all of which are encour- ai^'ing home production. leases were broken on properties in Ithaca, X. Y. ; Wilkes-Barre. Pa.; Milwaukee; Cincinnati; lluntine;- lon, W. Va., and Los Angeles. Six leases were broken in Boston, two in Philadelphia and three in Chicago. The hearing on leaseholds will lie resumed today. .";6^ JANUARY 15, 1933 18 53rd vear Say Ton Saw It in The Tobacco World Tobacco Merchants' Association January 1, 1933 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. Note B — If a report on a search of a title necessitates the reporting of more than ten (10) titles, but less than twenty-one (21), an additional charge of One Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-one (31), an additional charge of Two Dollars ($2.00) will be made and so an additional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATION APPRENTICE PRODUCTION:— 46,123 (T. M. A.). For all to- bacco products. December 7, 1932. Faber, Coe & Gregg, Inc., New York, N. Y- TRANSFERS DOLORES:— 21,937 (U. S. Patent Office). For cigars. Registered August 3. 1920, by C. B. Henschel Mfg. Co., Milwaukee, Wis. Transferred to Consolidated Litho. Corp., Brooklyn, N. Y., Novem- ber 30, 1932. MARLENA:— 38,542 (United Registration Bureau). For cigars, cigarettes, cheroots and tobacco. Registered January 12, 1914, by American Litho. Co., New York, N. Y. Through mesne transfers acquired by Abelardo Menendez, Tampa, Fla., and re-transferred to Francisca Menendez and Justa Chao, Tampa, Fla., November 18, 1932. MARLINA:— 36,268 (United Registration Bureau), and 21,497 (To- bacco World). For cigars, cigarettes, cheroots and tobacco. Regis- tered January 19, 1911, and January 28, 1911, respectively, by American Litho. Co., New York, N. Y. Through mesne transfers acquired by Abelardo Menendez, Tampa, F'la., and re-transferred to Francisca Menendez and Justa Chao, Tampa, Fla., November re, 1932. CRESCENDO:— (Trade-Mark Record). For cigars. Registered July 17, 1889, by George Schlegel, New York, N. Y. Transferred to Consolidated Litho. Corp., Brooklyn, N. Y., December 5, 1932. TALISMAN: — 2,302 (Legal Protective Association). For cigars. Registered August 11, 1886, by Geo. Schlegel, New York, N. Y. Transferred to E. Popper & Co., Inc., New York, N. Y., December 12, 1932. STOCKS OF LEAF TOBACCO. OCTOBER 1, 1932 TOCKS of leaf tobacco in the United States owned by dealers and manufacturers amounted to 2,095,011,000 pounds on October 1, 1932, compared with 1,841,097,000 pounds on Oc- tober 1, 1931. This is an increase in total stocks of 253,914,000 pounds over the stocks of a year ago, how- ever, the decrease during the quarterly period from July 1st to October 1st this year was greater than the decrease during 1931. From July 1, 1932, to October 1, 1932, total stocks decreased 143"',727,000 pounds. The decrease during the same period of 1931 amounted to only 73,622,000 pounds. Stocks of flue-cured tobacco on hand October 1. 1932, were 720,508,000 pounds compared with 739,356,- 000 pounds on October 1, 1931, a decrease of 18,848,000 pounds. During the third quarter of 1932 flue-cured stocks decreased 24,699,000 pounds, whereas, during the third quarter of 1931, flue-cureci stocks increased 62,604,000 pounds. The detailed report by groups of grades shows no change in the proportion of flue-cured tobacco in the various groups. Stocks of fire-cured tobacco are reported as 194,- 869,000 pounds on October 1, 1932, or 33,811,000 pounds higher than a year ago. Virginia fire-cured, Type 21, reported as 32,216,000 pounds, shows an in- crease of 3,609,000 pounds over the stocks of October 1, 1931. Kentucky and Tennessee fire-cured. Types 22 and 23 combined, show total stocks on October 1, 1932, of 158,506,000 pounds compared with 129,349,000 pounds on October 1, 1931. Stocks of Henderson Stemming, Type 24, amounted to 4,147,000 pouncis on October 1, 1932, compared with 3,102,000 pounds a year ago, and 5,186,000 pounds on July 1, 1932. Burley stocks were about 149 million pounds higher on October 1st than they were a year ago. The October 1, 1932, report shows 585,902,000 pounds on hand compared with 436,802,000 pounds on hand Oc- tober 1, 1931. The decrease in Burley stocks during the third quarter of 1932, was about the same as that of the third quarter of 1931. Maryland tobacco stocks continue to increase, and were higher on October 1st than they have been for a number of years. The re- port shows stocks of this tvpe as 30,670,000 pounds. On October 1, 1931, Maryland stocks were 22,109,000 pounds. One-Sucker stocks on October 1, 1932, amounted to 33,710,000 pounds, about four million pounds lower than on July 1, 1932, and slightly higher than a year ago. Green River stocks, reported as 36,305,000 pounds, were about twelve million pounds higher than a year ago. Virginia sun-cured stocks were reported as 3,358,000 pounds on October 1. Miscellaneous domestic stocks amounted to 2,182,000 pounds, and i'oreign grown cigarette tobacco stocks (other than cigar leaf. Type 90) were reported as 71,873,000 pounds on October 1, 1932. October 1st Cigar Leaf Tobacco Stocks Stocks of American-grown cigar filler types, in eluding Porto Rican, amounted to 187,765,000 pounds on October 1, 1932, compared wuth 154,351,000 pounds on October 1, 1931, an increase of 33,414,000 pounds over the holdings of the previous year. This increase is in Types 41, 43 and 44. Types 42, 45 and 46 show a slight decrease. Filler stocks show a normal decrease during the third quarter. The cigar binder t>T)e stocks were 27,233,000 pounds higher on October 1, 1932, than they were on October 1, 1931. Total binder tvpe stocks were re- ported as 198,847,000 pounds on October 1, 1932. The detailed report by groups of grades shows that of the total stocks reported, 4,202,000 pounds are of wrapper quality, 76,094,(X)0 pounds are binder, 8,890,000 pounds are fillers, and 109,478,000 pounds are stemming or X group tobacco. Shade-grown wrapper stocks were practically the same on October 1, 1932, as they were a year ago. Total shade stocks were reported as 16,059,00<) pounds, Type 61 totaling 10,902,000 pounds and Type 62 re- I)orte(l as 5,157,000 pounds. Of the total reported, 11,- 678,000 pounds are shown in the detailed report in the A group, as being of actual wrapper quality. Foreign cigar leaf tobacco stocks were reported as 12,963,000 pounds on October 1, 1932. RETAIL STORE PROBLEBfS (Continued from page 14) the licensor or his agent shall have the right to cancel the licensee's license or permit upon the giving of 30 days' notice. 30. Monthly statement from licensee to licensor. — On or Iwfore the day of each month, the licen- see shall send to the office of the licensor a statement, signed by the licensee, of all outstanding accounts due to the licensee on the last day of the previous month from customers or others for merchandise bought in the licensee's department in the (name of store) and not fully paid for. (To be continued) LILLIAN RLSSELL for 5c U. S^BOND CIGARS CIGARS P. LORILLARD COS 2 *«' 5^ Cigars These brands formerly sold at 5c each . . . now reduced to fit today's purse . . . automatic machines offer A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AUTOMATIC AGE 2810 S. Michigan Avenue Chicago Illinois N E W C L R R E N C Y C I G .\ R S EatahlitheJ IH><*> "BEST OF THE BEST" 2 for 5c ^^^i^±^ A. SANTAELLA & CO. Office, 1181 Broadway. New York City FACTORIES: Tampa and Key West. Florida m n nii"n"—^^w—o»» Ml ■"■»!■ mmm Lk mnTTTTTTn PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. BL;jioitim2ffiLM.vmM^^ After all nothing satisfies like" a good cigar WOODEN BOXES Are the Only Natural Humidor for Cigars. Pack your cigars in wooden boxes and preserve their delicate aroma, mellowness and flavor right up to the time they are passed over the counter to the customer. Discriminating cigar smokers prefer to select their favorite brand from a wooden box and it's good business to cater to the dealer and con- sumer by packing your cigars in wooden boxes. /when buying cigars I Remember thjt Regjrdlett of Price I THE BEST CIGARS I ARE rACKED l> \^ WOODEN BOXES Volume 53 THE TOBACCO WORLD Number 2 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the Ist and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, JANUARY 15, 1933 Foreign $3.50 CIGARETTES BACK TO $6 iN January 2d the American 'rol)aooo Company and the K. J. Keynohls 'P()])aceo Company an- nounced a reduction in the wholesale price of ''Camel" ci^^arettes and ''Lucky Strike" from $6.85 per thousand to $6 per thousand, and a similar reduction was announced by the Li^'pjett & Myers To- bacco Company and the \\ Lorillard Company on Jan- uary 3d. Retail prices on "Camels," "Lucky Strikes," "Old Golds" and "C'hestertields" were correspond- ingly reduced and are now retailing' at two packai^es for twentv-tive cents in the chain stores, including the Great Atlantic & Pacitic Tea (\)m])any, while the inde- pendent "cut-raters" are in many instances selling these brands at two packages for twenty-three cents and $1.13 a carton. The reduction in wholesale price brings it down to the lowest point since 1028, and it is generally under- stood that the reduction was made in an etTort to com- bat the competition of the recent ten-cent brands which are being marketed by several of the smaller cigarette manufacturing concerns, and which have been making considerable headway in view of present economic con- ditions. When It comes to inside knowledge on price poli- cies of the tobacco companies, Wall Street apparently knows more than some executives in the industry. To- bacco shares listed on the Stock P^xchange were going down during the week ])rior to January 1st and it was widelv reported that a sharp rocbu-tion would be made at the turn of the year in the wholesale price of ciga- rettes. At that time an oflicial of one of the big ciga- rette manufacturing com])anies was quoted as deny- ing that a ])rice cut was likely or was beiiiir considered. On January M, in an otherwise coh^rless session of the stock market, the tol)acco shares furnished the prin- cipal feature. This group sokl otT early on reports of the cigarette |)rice reduction, but short covering on the news more than olTsrt the selling, \yith the result that nearly all tobacco issn<-< closed higher. Statisticians were busily engaged in computing the reduced revenue to manufacturers as a result of the cut in wholesale cigarette prices, and, over a year, at the estimated current rate of production of 80,000,000,000 cigarettes for the large companies, it was l)elieved revenue would l)e reduced by $60,000,000. One author- ity pointed out, however, that this decline in receipts might l)e offset in part by recovery of business lost to cheaper brands of cigarettes and by the fact that the manufacturers are just beginning to reap l)enefits from operating and other economies effected during the depression. R. J. REYNOLDS 1932 EARNINGS AT $33,674,800 J. REYNOLDS Tobacco Company, one of the "big four" of the industry, reports net earn- ings for 1932 after all charges, taxes and de- preciation of $33,074,800, equal to $3.36 a share on the combined 10,000,000 shares of common and class B stocks outstanding. This compares with net of $36,- 390,817 or $3.63 a share in 1931. The report disclosed for the first time the com- pany's holdings of its own stock— 585,000 shares, ac- quired at net cost of $18,208,641. The investment, it was reported, is somewhat larger than a year ago. The number of stockholders in the company was shown as 35,000 on December 31st, an increase during the year of more than 16 per cent. The report of S. Clay Williams, president, re- vealed that the year's earnings were charged with $4,000,000 representing excess of advertising appropri- ation for 1932 over actual expenditures. This will be added to the usual appropriation for advertising in 1933, he stated. Reserves shown in the statement, as of December 31st, were $8,149,445 compared with $2,403,710 at the end of 1931. Included in such reserves, in addition to the $4,000,000 carry-over on advertising, is an allot- ment to adjust wholesalers' inventories on cigarettes to the basis of new prices announced recently. "The company closed the year in the strongest iinancial condition in its history," the report of the president said. The balance sheet, as of December 31st, showed total assets of $186,219,855 compared with $176,856,000 at the end of 1931. Current assets were $144,774,153 against $140,461,299 on December 31, 1931, while current liabilities of $12,162,208 were slightly be- low those at the end of the previous year. Net current assets of $132,611,884 were $4,369,633 higher than at the end of 1931. Cash and United States government securities increased to $60,340,554 from $44,474,270. Changing the form of its report somewhat in ac- cordance with the New York Stock Exchange program for more detailed and standardized reports, the com- pany reveals for the first time interest and dividends on investments, together with miscellaneous income, amounting to $2,907,152. Net profit from operations after all charges amounted to $40,043,763, and net earn- ings, after deducting $8,284,366 for Federal and state income taxes and $991,250 for depreciation, obsoles- cence, etc., were $33,674,800. Cash dividends of $30,- 000,000 were paid in 1932, and undivided profits at the end of the year stood at $65,908,141, an increase of $3,674,800 over 1931. Referring to the company's inventories, which are valued at $76,356,770, against $85,780,878 at the end of 1931, the president's report states : (Contiimed on Page 16) 53rd vear THE TOBACCO WORLD January 15, 1933 GEORGE C. SHERMAN DEAD EORGE C. SHP]RMAX, well-known tliroui^h- oul the cigar manufacturing industry as head of the Universal Tobacco Machine CVimpany, was found dead in the bathroom of his home on Lake Avenue, in Greenwich, (^onn., on January 4, 1933. Death was caused bv a fractured skull, and Dr. John A. Clark, the medical examiner, said that Afr. Sherman had apparently become dizzy and struck his chin on the wash basin as he fell. At the time of his death Mr. Sherman was head of his own advertising com|)any, George C. Sherman, Incorporated, at 183 Madison Avenue, New York City; president of the National Outdooi- Advertising Bu- reau, and a director of McLean &: McLean, Incorpo- rated. He was known as a ])ol() i)layer and was founder and honorary president of the National In- door Polo Association. He was also a member of the Metropolitan Club of New York, the (Jreenwicli Polo Club, Indian Harbor Yacht Club, of (Jreenwicli, and the Rockawav Hunt Club. He was born at Port Henrv, N. Y., fiftv-three years ago, the son of Mr. and Mrs. Ahdcolm Sherman. He is survived by liis widow, Helen B. Sherman; a son, George, Jr., a student at Yale University, and a daughter, Angela M. Sherman. Funeral services were held on Saturday morning, January 7, at 9.30 A. M. from his late residence, and solemn high mass of requiem at St. Mary's Church at 10.15 A. M. Interment was private. The Tobacco World joins liis many friends in ex- tending sincere sympathy to his family and ])usiness associates. DRUG, INC., MAY SELL BOOTS STOCK According to authoritative reports, Louis K. Lig- gett, chairman of the board of Drug, Incorporated, is now in London negotiating for the resale to British in- terests of the controlling interest in Boots Pure Drug Company, Limited, Great Britain's leading wholesale and retail drug business. A majority of the shares were acquired from the late Lord Trent by Liggett in 1920 and have been enormously profitable investment for Drug, Incorporated, now being one of the highest priced and most sought stocks on the l^ondon Stock Ex- change. The present negotiations have not yet readied the final stage. The shares may be otTered direct to British investors or taken over ])y a British financial grou]). A portion of Drug's holdings would be retained and it is understood that Mr. Liggett will remain a director of Boots. If the deal goes through, the amount involved will exceed £5,000,000. PENN TOBACCO BUYS ROSEDOR COMPANY The Penn Tobacco Company, Wilkes-J3arre, Pa., has purchased the Rosedor Cigarette Company, Brook- lyn, N. Y., and will continue the manufacture of the Rosedor brands: ** Salome," ''Longfellow," "Men- thorets," ''Bright Star" and "Winners Crowns" at 160 Jay Street, Brooklyn, N. Y. The Penn Tobacco Company is headed by John H. Uhl, as president and has always specializeci in smok- ing and chewing tobaccos; this is its first venture into the cigarette field. Albert Vuccino, president of the Rosedor Com- pany since 1909 will retire from business. DEATH OF J. C. WIDMER OSHPH v. WIDMER, a director of Liggett & Myers Tobacco Company and manager of the supply department of that company, died on Januarv 3d at his home in New York Citv. Mr. Widmer was born in Philadelphia September 23, 1858. Since leaving the University of l\»nnsylvania, he was thereafter continuously engaged in the tobacco business. He started with a tobacco commission house in Philadelphia, and then represented National To- bacco AYorks of Louisville in Pittsburgh; uj)on its pur- chase by American Tobacco (^om])any he became busi- ness manager at Louisville. In 1901 he came to New York and with the formation of Amsterdam Supply Company to purchase supplies for American Tobacco C()m])anv and its afhliates, he became its secretarv. V\)Ou dissolution of American Tobacco Company in 1911 he became associated with Liggett & Mvers To- bacco Company as manager of its supi)ly department, and retained that jmsition up to the time of his death. He was made a director of Liggett & Mvers in Febru- ary, 1924. He was married in 1884 to Kate Webb in Pitts- burgh. Mrs. Widmer, a son, (leorge Widmer, and a grandson, survive him; his daughter, ^liss (jlertrude Widmer, died in July, 1929. For seven years he was member of the board and president of the Wykag>'l Country Club, New Rochelle. He In'lped form the Westchester County (lolf Associa- tion, and was ])resident of that association for one year. At the time of his death he was a memlK»r of the Mnu- hattan Club, New York, and Hudson River Country Club, Yonkers. Funeral services were held at All Angels Church, New York, on January 5, officials and directors of Lig- gett & Myers IxMug among the honorary pallida rers. Interment was in Kensico Cemetery. SCHULTE URGES DEPOSIT OF BONDS In connection with the failure of Schulco Com- pany, Incorporated, to provide funds to pay January 1 coupons on its 6H' per cent, sinking fund series* A bonds, David A. Schulte, president of Schulte Retail Stores Corporation, yesterday issued the following statement : "The Schulco Company, in letters dated December 20, 1932, to holders of both series A and series H bonds, outlined the company's present situation to bondhold- ers. I urge all bondholders to read this letter care- fully and to act i)romptly in depositing their bonds with Ix^hman Brothers under the readjustment plan which calls only for a reduction in the sinking fund. If the plan is declared operative funds will be provided to pay the January 1 coupon on the A bonds and the coui)on on the B l)onds due April 1. "The bondholders of the Schulco Comi)any are at present in grave dang<'r of losing a large ])art of their investment as well as the interest return on it. The plan in which the bondhohlers are being asked to co- ojXM'ate involves no real sacrificM* on their part. If it is promptly }nit through the bondholders may continue to receive their interest return in full and eventually be repaid their investment. Both will be impossible without action such as proposed. "The failure of bondholders to realize the serious- ness of the situation is now delaying a prompt carry- ing out of the plan and immediate response from hold- ers of both series A and series B bonds is therefore vital in their own interest.'* January 15, 1933 Say You Saw It in The Tobacco World 53rd year Smoke a M^resh cigarette Cameis are never parched or toasted Camels are always mild because they are always fresh. A blend of choice Turkish and mellow, sun -ripened Domestic tobaccos, they are never parched or toasted. Enjoy their mild fragrance for just one day, then leave them — if you care to. R. J. REYNOLDS TOBACCO COMPANY, Winston-Salem, N. C Don't remove the Gtmel Humidor Pack— it is pro- tection against perfume and powder odors, dust and germs. Buy Camels by the carton for home or offue. The Humidor Pack keeps Camels fresh Camels • IMS. K. J. S«nMl4«TateM»Cca«My 53rd year THE TOBACCO WORLD January 15, 1933 BAYUK "PHILLIES" NOW FIVE CENTS KEDUCTION in the retail i)rice of the ''Phil- iulelpliin Perfeeto" cigar from ten to five cents — etTective January 1st — has been re- cently announced by Bayuk Cigars, Incorpo- rated. This cigar— also known as Bayuk ** Phillies" and ''Philadelphia Hand Made"— has been one of the most popular brands on the American market. In a statement issued to both the pul)lic and the trade— the manufacturers of the ''Bayuk Philadel- phia Perfecto" announce — that this reduction in price on the "Phillies" was made without sacrificing one iota of the value offered in the fine quality tobacco and w^orkmanship. In commenting on the many price reductions cur- rent today in the cigar industry, Bayuk Cigars, In- corporated, issue this caution to consumers and deal- ers: ** Many cigars are being offered today at mere fractions of their former selling price. But, in many cases, price reductions were made l^ecause value at the higher price was not apjiarent to the smoker. *'This is not the case with the Bayuk 'Philadel- phia Perfect o.' For many years it was the largest selling ten-cent brand in the American market. Mil- lions were suld during the past few months at 10 cents. Millions could be sold this year — and next year — at 10 cents. "Bayuk guarantees that this 'Philadelphia Per- fecto Cigar' today— at 5 cents — contains the same fine imported Sumatra wrapper— the same fine Havana and domestic long-filler — the same ripe tobacco as when millions of men gladly paid 10 cents for it." Jacob Oxman, Incorporated, retail luncheonette and cigar store, 437 Walnut Street, filed a voluntary I)etition in l)ankruptcy here this week. No schedules of liabilities or assets were filed. Referee, David W. Amram. A. Jere Creskoff, counsel. Joe Wilson, well known in this territory as a repre- sentative of the "Cortez" factory for several years, has joined the sales forces of George Zifferblatt & Com- pany and is now promoting sales of the "Habanello" cigar. Next week Mr. Wilson will go to Scranton, where he will do promotional work on the "Habanello" brand in conjunction wath the Scranton Tobacco Com- pany, "Habanello" distributors for that territory. <( TWENTY GRAND" IN PHILADELPHIA UE Axton Fisher Tohacco Company, Louis- ville, Ky., has announced that their "Twenty Grand" ten-cent cigarette production has now reached the point where it is possible to sup- ply jobbers in the State of Pennsylvania. In June of last year the first announcement to job- bers was made in a few States, on "Twenty Grand" cigarettes, and since that time other States have been "opened up" as production facilities permitted. The Axton Fisher Tobacco Company, was aware that they had produced an exceptionallv fine cigarette in "Twenty Grand," but they did not'realize that in a short space of time, it would become, by far, the first seller in the territories opened. But, such a thing did happen, and before they were prepared for it, demand exceeded their jjroduction facilities. Since August the factory has been running on twenty-four-hour production, and after using all the space on the floor formerly used for cigarette manu- facturing, they are now using the entire second floor of the factory for the same purpose, and with the instalhition of the most up-to-date machinery, it is re- ported that their production is now up to approxi- mately 35,000,000 cigarettes a day. The trade has l)een anxiously awaiting the arrival of their first shi])ments of "Twenty Grand" on ac- count of their phenomental success in the other States where they have been introduced. Larus & Brothers, Richmond, Virginia, manufac- turers of the "Edgeworth" l)rand of smoking tobacco, has been working in this territory during the past week on their "Domino" cigarette, retailing at twenty for ten cents, with good results. Yahn & McDonnell Cigars, 617 Chestnut Street, distributors of high-grade cigars and tobacco prod- ucts, report an excellent sale on their private brand of smoking tobacco, "D. & M. No. 1," and also on **Briggs" smoking tobacco, a Lorillard product. Clarence Thompson, manager of the Hotel Belle- vue-Stratford cigar stand is featuring a particularly attractive display of John Wagner & Sons' brands, including "Eden," "Don Sebastian," "Wagners," ' ' Garcia y Vega, " " Monticello, ' ' etc. This stand also reports a highly successful year in 1932. January 15, 1933 Say You Saw It in The Tobacco World 53rd year Anume /f>^P^ and we'd like to talk with you about it AXl races of people since the beginning of tunct so far as t^ve have been able to read, have had some kind of a pipe and have smoked something — whether they caUed U tohacco or what noL A ND since smoking a pipe is so different JbX from smoking a cigar or cigarette, we made a most painstaking, scientific Btudy in an effort to make, if we could, a tobacco which was suited to pipes. We found out, first, that there was a kind of tobacco that grew in the Blue Grass sec- tion of Kentucky called White Burley, and that there was a certain kind of this tobacco which was between the tobacco used for cigarettes and the tobacco used for chewing tobacco. It is this tobacco which is best for pipes. We found out that Mr. J. N. Wellman, many years ago, made a pipe tobacco which was very popular. But it was never advertised and after he passed away nothing more was heard about it. We acquired this Wellman Method and that is what we use in making Granger. Next was the cuL We knew that fine tobacco burnt hot because it burnt so fast. You could hardly hold your pipe in your hand, it got so hot at times. So remembering how folks used to "whittle" their tobacco we cut GRANGER just like "whittle" tobacco — "Rough Cut." It smokes cooler, lasts longer and never gums the pipe. So far, so good. Now we wanted to sell this tobacco for 10c. Good tobacco — right process — cut right. So we put Granger in a sensible soft foil pouch instead of an expensive package, know- ing that a man can't smoke the package. GRANGER has not been on sale very long, but it has become a popular smoke. And we have yet to know of a man who started to smoke it, who didn't keep on. Folks seem to like it. jTcofe^ rfvCC^JiAAK/wojccQ Co: 8 53rd year THE TOBACCO WORLD January 15, 1933 DR. KLEIN TO SURVEY UNITED BUSINESS R. JULIUS KLEIN, Assistant Secretary of Commerce, will conduct a survey of the mer- cliandisine: business of United Cigar Stores and its subsidiary, Whelan Drug Company, Incor- porated, with the objective of making recommendations of benefit to Irving Trust Company, trustee in bank- ruptcy to both companies, it was announced by Cravat li, De Gersdorlf, Swaine & Wood, counsel for Irving Trust. Recommendations made by Dr. Klein will re- ceive consideration by the trustee in continuing the bus- iness of the cigar and drug chains and in developing the policy of reorganization. The trust company was authorized to employ Dr. Klein in an order issued by Federal Referee Irwin Kurtz last Saturday. The order provides for his em- ployment at a salary of $7500 for the first month as well as expenses incurred with approval of the court, with further salary payments to be determined later by the court. It is indicated that preparation of the report will require several months. In the petition of Irving Trust Company asking permission to employ Dr. Klein, attention was called to his service with the Department of Commerce since 1920, first as director of the Bureau of Foreign and Domestic Commerce, and subsequently as Assistant Secretary of Commerce. *'The petitioner is advised, *' the petition said, *'that Dr. Klein is one of the outstanding experts on general business and commercial problems in the coun- try and is a recognized authority on merchandising and similar matters." The petition added that under the supervision of Dr. Klein, the Commerce Department had at one time conducted a survey of the retail drug business of the country. Total sales of United Cigar Stores in 1931 amounted to $63,163,000, while sales of Whelan Drug Company, Incorporated, now known as Retail Chemists Corporation, were $19,000,000 in the same year. United Cigar Stores is the principal cr'editor of the Uhelan Company, according to the petition, which states that *4t is to the interests of the creditors" to continue the business pending an opportunity to dis- pose of such business as a going concern ''either in con- nection with a reorganization or in the liquidation of the estate." The trustee, it is stated, does not intend the survey to be a **mere review of the situation," but rather that it should deal in recommendations regarding the kind of products to be sold, the demands of markets in vari- ous sections of the country, purchasing agreements with manufacturers and wholesale dealers, and sales prob- lems, including problems presented by present de- pressed business conditions and comix^ition. HAVANA DRUG STORES ARE DRUG STORES In Havana, Cuba, drug stores must confine them- selves to the sale of pharmaceutical products, hygienic and orthopedic articles, apparatus for application of sciences and stationery supplies, according to a recent decree of the Department of Health there. The practice of selling notions, candies, toys, books and merchandise not kindred to drugs indulged in by many of the drug stores aroused the disapproval of the department and brought about the issuance of this order. A petition for a 150-day period in which to liq- uidate such stocks on hand was denied. "^^^ PUISVILXA. KENTUCKY Brown St Williamson products have been designed to bring you the most profit in all lines and prices. New products are added to fit the times. Old established products are exploited by strong advertising. Are you getting your share of profit from these live, selling items — Sir Walter Raleigh Smoking Tobacco, Raleigh Cigarettes, Golden Grain, Wingi Cigarettes and Bugler Tobacco? 'I 10 53rd year THE TOBACCO WORLD Januarv 15, 1933 « 7 THE TOBACCO BUSINESS— PAST AND FUTURE HARLKS DUSHKIXl), counsel ami managing diroctor of tho To])aeco Merchants Association of the United States, issued the following timely statement, witli tlio advent of the New Year, on the tobacco business in the outgoing and the incoming year : "Reduced incomes — not to mention total unem- ployment of millions of our country's wage-earners — have taken their toll during the past year from the tobacco business as they have from every other indus- try. Nevertheless, with due regard to existing condi- tions, it cannot ho gainsaid that the industry, as a whole, has lield up remarkalily well in comparison with most others. "In examining the returns presented lierein for the year ending December 1, 19.S2, we must bear in mind that our industry has merely followed the general trend of present conditions, i. e., the more expeubive forms of our products have sutYered th<' most. "Manufactured tol)acco, the cheapest form, has de- clined only to the extent of about 4 per cent., and in view of the increased internal revenue from the tax on cigarette papers, it seems quite evident that scmie types of this branch, particularly those suitable for 'roll-your- own,' have undoubtedly been in greater demand than previously. "Cigarettes, the next in line from a price stand- point, have shown a decline of 9.8 ])er cent, which, in large measure, has very likely been absorl>ed, if not exceeded, by the increased dernand for 'roll-your-own' mentioned above. "Cigars, which relatively are classed as th<> most expensive product of the tobacco family, have sutTered the greatest— a little over 1() ptn- cent.; while (Mass A, composed of cigars selling for T) cents and less — in line with the general trend noted— has declined onlv to the extent of about 5% per cent. Unfortunately, however, the full effect of the existing economic conditions has been felt in the Class C and higher priced goods. "Thus while the records for the year 19:>2 clearly show that, due to vanishing incomes and forced econ- omy, there has been much switching from one tvj^e or form of tobacco to another, the tobacco industrv as a whole has evidently lost little or none of its jirestige, its popularity or its following, despite this uuDaralleied world-wide panic now entering the fourth year of its ravaging cycle but which, let us hojK', is reaching its end. "With the betterment of conditions and the return of purchasing power, we may, therefore, well anticipate that our industry will again resume its normal march of progress, not alone recovering such markets as have been temporarily diminished, but coming back, as it did after all previous panics, with greater prosperitv than ever before. "For years a former govenmient actuary, now deceased, whose rei)utation in his field was second to none, looked upon our industry as one of the best ba- rometers of general conditions; we have everv confi- dence that it will remain so and will be among the first to record better conditions. "Hysteria has ] massed. We have a job on our hands, it is true, ])ut timk, the great healer,' is at work. "The tide is bound to come in — surely no one con- templates that this progressive nation will* Ih' unable to find the solution to its problems or that its great cap- tains of industry and finance will fail in the future to excel their achievements in the past. "The processes of adjustment have alwavs been painful and we are apt to be impatient, but if past WISCONSIN TOBACCO LOWEST IN 78 YEARS CCOKDING to recent advices from Madison, Wis., the lowest tobacco prices since the indus- try was started in AVisconsin seventy-eight years ago, were offered there on December 23d, although the planting was held to nearly half the record acreage. The price was around five cents a pound. While the growing of tobacco is commonly associ- ated in the average man's mind with Kentucky, North Carolina and other Southern States, Wisconsin's rela- tively frigid climate has produced for generations a large portion of the country's cigar binder tobacco, sharing that field with Connecticut. Wisconsin is the most northern State to grow to- ])acco commercially, but the "weed" is virtually always the State's second leading cash crop. Recently much cigarette tol)acco has been grown in Ontario. Canada, an(l, in pioneer days, farmers in northern States grew their own su])ply in the garden. Three Connecticut Yankees — Brothers Ralph and ( )rin l*omeroy and Cousin Chester — are generally cred- ited with growing the first tobacco in Wisconsin.' They came by wagon from the Miami Valley of Ohio about IH.")!) and settled in Hock County. Ralph grew his first crop seven or eight miles south of Madison in 1854, while Chester's first cro]) was harvested in 1857 near Kdgerton on a plot of ground which has produced to- bacco each year since. A son of Ralph Pomeroy, William T. Pomeroy, has ii'mained close to his father's original tobacco field for the last fifty years, breeding the Comstock Spanish seed tobacco which is grown almost exclusively in Wisconsin. From the small beginnings of the Pomeroy families, the tobacco industry in Wisconsin grew to a record acreage of 48,(M)() in'l918, most of it in Dane and Ver- non Counties in Southern Wisconsin. Low prices in recent years ])ulled the 19.S2 acreage down to 28,000, the lowest of the century. In 18()() the crop lirought 13.9 cents and in 1870 it was quoted at lf;.2. At the turn of the century the Wisconsin tobacco farmer got 7 cents a pound, but the ])oom war days of 1918 gave him 22 cents, wlien r)2,400,- 000 pounds were produced to bring a farm value of J?ii:?,72S,0()(). This year the estimate is 3(),000,(K)0 I'ounds, wortlj less than $2,(KK),000. (bice a])out fJO j)er cent, of the Wisconsin tobacco was sold for cigar binder, ])ut now oidy half that amount is marketed for that purpose and 70*i)er cent, goes for package tobacco. Xo farmers depend on tobacco for a livelihood in Wisconsin, but raise the crop as a side line, mostly with dairying. NOVEMBER TOBACCO EXPORTS UP The Bureau of Agricultural Economics at Wash- ington, reports that unmanufactured to))acco exports from tliis country in Xovem])er, 1932, were 144 per ci'nt. of pre-war volume. <'X|»erience is any guich', we arc perhaps closer to a definite upturn than anyone realizes. "Let us therefore <'nter upon the New Year with the fullest measure of confidence, knowing that success- ful H'sults are still well within reach of those who, undaunted by unfavorable conditions, seek diligently and courageously to fulfill the demand for goods and services; and that in the case of the tobacco industry the inherent desire and need for its products is prob- ably greater today than it has ever been in the history of the country." BAYUK BULLETIN VOLUiME I JANUARY 1933 NUMBER 1 PHULOFAX (The Retailer^s Friend) SAYS Yes, I'm Editx)r of this Bayuk Bulletin but, by gad, you other fellows out there on the firing line, you job- bers, you jobber sales- men, you retailers, have got to get busy and help edit it. Send in your items of interest. Buying cheap merchandise to save money is like stopping a clock to save time. o Hey, you retailers: Didja pull some good selling stunts on Christmas cigars this year? Make a note of them and use again next year. Don't trust to memory. Ideas are worth their weight in gold. — o — Answer to D. A. S. You say you "are with a competitive manufac- turer" but would like to suggest some- thing to me. Go ahead, old boy . . . this is an open forum for everybody in the cigar business. — o — You jobbers who have carried over a little stock of Christmas packings of cigars, what are you going to do? Don't wait to take action . . . l/40ths can be sold after Christmas. . . . Take off the Christmas wrapping and get some of your live-wire dealers to use them to build year round box business. — o — If a smoker came into your retail store and laid down a quarter and said "Give me a couple of Blank 5c cigars," — what would you do? Give him two cigars, ring up 10c and give him 15c change? Wrong, Watson, wrong— try to sell him a Five Pack and grab his quarter. — o — Don't fight your competitor . . . compete with him. — o — Good cigars are the most economi- cal form of pleasure. — o — An industry is only as good as the product that industry turns out . . . a pleasing, acceptable product means a growing, profitable industry. — o — Boosters of an industry must work with their hearts as well as with their heads. ^ Who is the most important factor in any industry? The manufacturer, ^II^. Jobber or the dealer? Answer: Uhjch is the most important leg of a three-legged stool? — o — Fellow .salesman — are you dissatis- fied with your present job? Do you know who'll help you earn a better one? Look in the mirror. — o — Phil M. Phulofax, D. B. I. wants to do his doggoncdest to do his share to increase the sale of cigars ... the cigars he sells himself or anyone else's good cigars. He wants recruits to join the C. B. A. Will you enlist? Phil means YOU, too! Don't clutter your case with ^long Bhot8'\ Put the favorites to the fore. WISE DEALERS BACK THE FAVORITES and let the long shots and also rans take care of themselves c^^c:^^' D. B. I. *A,»„cinU^ iriffc RA>1TK CIGARS Inc., Phila. d^phia ~ Makmra of fukm c^ara ^mtm 1897 If you've ever followed the ponies, you know that the smart professionals put their dough on the favorites — horses with a record of performance back of them. It's the rank amateur who dreams of cleaning up a fortune on the long shots. It's a good deal the same way in the cigar business. You know that sixty, seventy, eighty per cent, of the calls are for a few well-known brands. And that's where the money is. Of course, once in a while, a clever salesman may put some- thing over on you. There are fellows who can sell earmuffs in Africa. One of these spellbinders may load you up with a gaudy line of unknown brands that promise an unbelievably long profit. But L WHAT DO YOU KNOW? What's new in the cigar busi- ness ? What do you know that will interest other jobbers, dealers and their salesmen? Send it in. The BAYUK BULLETIN is looking for news and will pay well for it. Send us the facts. We'll supply the "literary style." Address Phil M. Phulofax, Bayuk Cigars Inc., 9th St. & Columbia Ave., Phila., Pa. — you don't get the profit until you've sold the cigars. And that's where the catch comes in. All the profit you'll ever get out of those cigars you can put in your eye. The probabilities are you will finally close them out at a loss. Meantime you clutter up your showcase with cigars nobody wants, and hurt the sale of your big-money lines. The customer looking for one of the favorites, can't find it for the crowd of long shots and also rans. Suppose he does take a chance on one of the "un- knowns" instead of buying a handful of his pet smokes. What does that get you? Probably a black mark for steer- ing a good customer up against a bad bet. The shrewdest man makes mistakes. But he doesn't make it twice in the same place. If you get stung on a slow-selling brand, there's no reason why you should make the error of giving it case room. Keep your valuable case-and- window space for the favorites — the brands with the quick turnover and the volume profits. BAYUK OFFERS $5.00 FOR GOOD SALES IDEAS In the interest of our friends, the cigar jobbers, retailers and their salesmen, we propose to make the "Bayuk Bulletin" a clearing house for ideas that have brought home the bacon. If John Smith of Kalamazoo has found a way to sell more cigars to "Kalamazooans'' there's no reason why the same thing can't be worked by John Jones on the good folks out w Walla Walla. The more ideas we pass on to one another, the more we'll all know, and the more cigars we'll all sell. If there's anything the cigar business and every other busi- ness needs today, it's real co- operation among friendly com- petitors in the interests of a bigger, better business for all concerned. So here's the plan. If you have a good sales idea send it to us. For every idea we accept for publication we will pay five dollars. And with the idea we'll publish a photograph of the man submitting it, so that everybody will have a chance to see what a really brainy cigar jobber, dealer or salesman looks like. Now, Philadelphia postmen have strong backs. So don't be afraid to mail us a flock of ideas. If yours are accepted, we pay five dollars for each, whether we buy one or a dozen. But don't send your photograph until we ask for it. Because this is a brain (not a beauty) contest. The next issue of the Bayuk Bulletin will be going to press pretty soon. Let's see who will be the first idea hound to break into print. HERE'S A JOLLY CONTEST Who is the tallest cigar sales- man in the U. S. A.? Who is the shortest? Who is the fattest ? Who is the skinniest? Who is the oldest and who is the young- est? Damifiknow. Do you? Let's have the facts and the photographs. We'll run them in the "Bayuk Bulletin." BAYUK BRANDS BUILD BUSINESS Bayuk Philadelphia Perfecto Havana Ribbon Mapacuba Charles Thomson Prince Hamlet 12 53rd year THE TOBACCO WORLD Jamiarv 15, 1933 RETAIL STORE PROBLEMS So many persons are unaivare of the many aids to hnsiness which have been carefully prepared by the United States Government, and so many of those who are aware of these facilities fail to talie advantage of them, that we are publishing the following studies as an aid to the retailer, — Editor, ■ j a * {This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) DEPARTMENT LEASING IN RETAIL STORES License Agreement (Continued from previous Issue) This statement shall show the date of the sale, the merchandise sold, to whom sold, the address of the cus- tomer, the total amount of the sale, the total amount paid to date, the total balance due, and the date when due. 31. Conferences with licensor s officers. — Un of each week at (time) there will be held at the office of the licensor, or such other place as may be desis:- nated, a meetins? of the officers of the licensor with the licensee, at which matters with rehition to the oper- ation of the store will be discussed, and at which the licensor will seek the wishes of the licensee with re- gard to such matters as arise from time to time. The licensor shall not hQ required in any case to follow^ the wish of the licensee with regard to such matters .go expressed unless it deems it to be the l^est inter- ests of the (name of store) to do so. Department Leasing as an Economic Expedient In types of stores having many departments the practice of sub-leasing sections has developed beyond the stage where it may be considered as a device used by a few store owners merely to supply a temporary lack which lessened their opportunities for personal profit. Department-store organizations naturally take the lead in the leasing of store sections, and some de- partment-store proprietors claim that they can make more money by leasing, whereas other retailers, simi- larly situated, are equally positive that they profit more by not leasing. This indicates, broadly speaking, that both the motive and the justification for leasing should be considered apart from the controversial ques- tion of its value to the store as an immediate money- making or money-saving expedient. SER\^CE TO THE PuBLIC Any business enterprise, in order to continue, must give as good or better service to the public than can be contributed by any other agency which suggests itself as a substitute for meeting the same economic need. Though the public knows little or nothing about the leasing system, nevertheless it is unwittingly the judge which determines the real status of a leased de- partment. This fact is recognized by many lessors, for a number expressed, in varied phraseology, the thought that they approved of leasing w^hen justified by the desire of the store management to have a complete line which will serve the local public's convenience. Can it be said, then, that those department stores which do not lease fail to serve the public satisfactorily? On the contrary, in most cases they are prosperous stores whose flourishing business indicates that, though they have passed beyond or around the necessity for leas- ini,', they are meeting with the approval and patronage of their respective communities. The store managers who operate all their departments believe that they constitute the best judge of good service, because they are in a position to know from day to day exactly what service is being given and can more accurately meas- ure the public's appreciation. It is frankly acknowledged within the retail trade that when the desire to lease is brought about by lack of skill, on the part of the owner, to carry on his main business, or lack of capital to make the proper invest- ment, this is an indication of overexpansion ; also that leasing as a general solution under such circumstances is not in accordance with best retail practice nor cal- culated to render the most efficient retail service to the public. The foregoing statement leaves for consideration those sections which are so specialized as to give rise to the claim that the average department store man- ager is not qualified to operate them without loss. Competition is the answer to why such departments exist in department stores; each retailer is anxious that his store should be as attractive as any other store of the same type. But back of this means of meeting competition is the idea of public service and the gen- eral belief among managers that the public wants to find these sections in a department store. This belief, however, is in conflict with the often repeated statement, ** There is not sufficient patronage in these sections, as a rule, to warrant employing capa- ble managers." Such a statement may be regarded as an implication, at least, that the local majority is not looking for that particular service in that partic- ular store. AVhether or not patronage is a fair measure of public need of service, it would seem that the mere leasing of unprofitable sections does not solve the gen- eral problem. If the type of service with which the store is unfamiliar is not salable in department stores, or in whatever type store the unsatisfactory section is located, the lessee who accepts the burden is possibly [jhicing his special skill where it is not in the greatest demand. Eliminating the question as to what departments logically belong in various types of stores, and specu- lation as to what effect, if any, combinations of depart- ment stores in the future may have on the problems of specialization, the economic status of department leasing (as related to present-day methods of dis- tribution) is fairly well covered by the following sum- marization of authoritative opinion: From the view- point of best retail practice, leasing, as a general thing, is not a proper remedy to apply to unprofitable sec- tions, but leasing may be justifiable when the depart- ment leased represents a line of business essentially different from the main business and when, by leas- ing, the store can more economically provide special- ized talent which can best serve the public. {Continued on Page 14) January 15, 1933 Say You Saw It in The Tobacco World 53rd year 13 Come to Tampa January 31st to February 11th, 1933 OPEN HOUSE TO THE CIGAR TRADE OF AMERICA INDUSTRIAL EXHIBIT. The Cigar Industry of Tampa has prepared an elaborate and complete display of our Industry occupying 10,000 square feet at the South Florida Fair. MEET THE BOYS. The ^lanufaclurors — those whose hearts are wrapped up in the provision to you of the World's finest cigars — ^want to wel- come you to their factories. MAKE THIS YOUR VACATION. Bring the wife and children. Give your- self, give them a taste of June in February. Tampa's climate is ideal. Plenty of fish- ing, bathing, golf, tennis, and all other sports. Hotel rates are unusually low. GOLF TOURNAMENT. Bring along your clubs. An open Golf Touniament open to all; no entry fees, with real prizes. Everyone has a chance in this tournament. Come along you duffers that shoot over 100. GASPARILLA CARNIVAL. Night parade with brilliantly lighted floats, elaborately decorated; probably one of the finest spectacles of this hemisphere. You must see it. SHRINE CEREMONIES. 'Nuf sed. SPECIAL RAILROAD RATES. Low excursion rates with lots of time for stop-overs. You have wanted to come to Tampa. Why not this golden opportunity! THE CIGAR INDUSTRY OF TAMPA. A. L. Cuesta, Jr. Chmn. Fred J. Davis, Jr., Vice-Chmn. Mariano Alvarez. Manuel Perez. E. W. Berriman. Ed. Mandell. THE FOLLOWING CIGAR MANUFACTURERS OF TAMPA WHO ARE PARTICIPATING IN THIS EXPOSITION PERSONALLY INVITE YOU. Arango & Arango Morgan Cigar Co. Jose Arango & Co. J- ^- ^^^'^^^^ ^^^^^ ^^• Berriman Bros. A. Santaella & Co. M. Bustillo & Merriam Schwab, Davis & Co. Cuesta Eey & Co. Corral-Wodiska & Co. Jose Escalante & Co. Havatampa Cigar Co. Garcia & Vega Wengler & Mandell Perfecto Garcia & Bros. Victor Diaz & Co. Marcelino Perez & Co. Salvador Rodriquez & Co. Preferred Ilabana Tobacco Co. Gradiaz-Annis & Co. 14 53rd year THE TOBACCO AVORLD January 15, 1933 RETAIL STORE PROBLEMS (Continued from page 12) Conclusion An effort has been mado to present a clear con- spectus coverinir the sul)ject of department leasing, a])out wliich there has been so little pul)lished. This bulletin includes onlv a few of the many examples which illustrate the fact that after considerable experiment- inir it has often been discovered that the leased de- paTtment could have ])een ojierated by the store man- agement with greater satisfaction to the custom^er and with more ])rolit to the retailer. Either first or last there must be realized the ne- cessity for a diagnosis which will reveal the cause for weakness in any section: and the testimony of the ma- jority, coupled* with an understanding of tlie difficul- ties confronting both the lessor and lessee, will tend to disprove the theory that leasing can be counted upon as l>oing the easiest way to take care of an unsatis- factory department. Where thorough analysis comes first. Teasing is more often reserved as a remedy to be employed only in exce])tional cases, and waste through unprofitable experimentation is eliminated. A resume of contributions from sources previ- ously named leads to the conclusion thai when *' Greater service to the public" becomes the unanimous reply to ''Why lease," there will l>e fewer and l)etter leased de])artments, more successful retailers, and in- creased ai)])reciation by the i)ublic of the retail store as an institution for service. VEHICULAR TRAFFIC CONGESTION AND RETAIL BUSINESS Summary The prol)lem of traflic is today one of tlie most im- portant as well as one of the most serious of problems confronting city governments; and with traffic condi- tions most acute in business districts, ther<' is no group of persons more concerned in tlie i)roblem than retail business men. Traffic Problem in Retail Business The present survey is based ui)on more than loOO expressions of o]>inion from representative' merehants having direct contact with the t rathe problem in com- munities of ditl'erent size throughout the country. Most of these merchants have re]>orted that their busi- ness is interfered witli because of traflic conditions. The extent to which this interference exists indicates that it varies from 1 to 20 per cent. The primary cause of the tiaftic |)roblem is con- gestion of vehicular traffic. Those factors which mer- chants have reported to be most res])onsible for this condition in retail areas, and ranking in the order named, are (1) faulty traffic regulations, (2) lack of parkinir facilities, {?>) narrow streets, and (4) the street car. These four factors may or may not 1h^ the chief forces concerned at all or even one location. However, thev are significant ih so far ns one or more of them is thought to be a basic caus<' in every in- stance of vehicular traihc congestion. The siirvi'v fur- ther brought out the imint that these factors are per cent, of an unselected group of 120 stores in the (iroup 1 cities; by 1() j^er cent, of an unselected group of 124 stores in the (Jroui) 11 cities; bv 30 per cent, of an unselected grou]) of 240 stores in the Orou]) III cities; and by 4J) i)er cent, of an unselected group of 480 stores in the Group IV cities. While the amount of store ])atronage using automobiles was reported as greater in the smaller cities and communities, it does not follow that auto- mobile ownershi]) in those places is greater. Hatlier, it is indicated that those i)ersons owning automobiles in the smaller communities use them for shopi)ing jmr- poses to a greater degree than those persons owning automobiles in the larger communities. Recent sta- stistics show that the number of automobiles per cji])- ita is greater in smaller cities and rural communities than in metro])olitan centers. The above estimates hel]) to coniirm that statement. Effects of Vehicular Traffic Congestion In tliose shopping areas where vehicular traffic congestion exists, instances have been re])orted showing that marks distinguishable as danger, lost time, incon- venience, and anxiety are making them.selves evident on the buying public. In those same areas, marks which take the form of diverted business, lost business, and increased cost of merchandise are found to be com- iiiLT into existence. Relief Measures for Merchant's "Front Door" The merchant's "front" or customer-entrance door is an important traffic contact point, and two re- lief measures have here been put into use by merchants and others. One measure consists of providing sufficient curb footage for those customers who desire to Ih' dis- charged at the entrance (chaulTeur-driven and other patronage not self-driven). This course is necessarily dependent ui)on the amount of curb footage actually in existence at the contact ]>oint. The second relief measure consists of i)roviding sufficient day storage space foi' those customers who desire to park their cars. In most localities it is im- possible for .streets to take < aic of all of tiiese cars. The average shopping tim<* in most cities throughout tin' country, a> revealed in the present survey, is less than half ail hour, and parking time regulations at most business locations provi«le tor a parking-time privilege of one hour. Kven traffic regulations which permit such a rapid street turnover as this have failed to ac- commodate* tile demand. Further inadecpiacy of park- ing time regulations to meet the entire jiroblem is found in the fact that outside of tlie increasingly great num- ber of automobiles wholly out of jiroportion to the average merchant's curb footagis a large proportion (if this automobile patronage has built up shopping peak periods. Limit<'d parking space is, therefore, not oidy in demand l)y an increased number, but frequently at the same periods of the etter distribution of shopping, which in most cities means *'shop early,'* (Continued on Page 18) January 15, 1933 THE TOBACCO WORLD 53rd year 15 Upon the Stability of An Organization Depends the QuaHty of Its Product and the Service Rendered The prosperity or poverty of a nation depends, after all, not upon laws but upon the ability of its commerce and in- dustry to maintain its markets and thus sustain employment. The stability of any business is founded upon a definite standard of quality and the utmost in service. The stability of AUTOKRAFT BOX CORPORATION guar- antees to its customers an unvarying quality in the new im- proved AUTOKRAFT cigar box and a maximum of service. Phi la., Pa, Hanover, Pa, Cincinnati, Ohio AUTOKRAFT BOX CORPORATION n^^ ^ ni i^nicago, III. LIMA Ohio Detroit, Mich. A NatioivWide Service Wheeling, W. Va, LIGGETT & MYERS PROMOTES ANDREWS lOGETT & MYEK8 Tobacco Company an- nounces the election of J. W. Andrews as a vice-president of the company. Mr. Andrews has been with the company since its organization, and in common with other Liggett & Mvers' executives, has had tliorou^'h training in the tobacco l)usiness. His early work was witii l^utler & Boescher, to})acco manufacturers in Kichmond, Va. During his long connection with Liggett & Myers To- Imcco Company, he has had vxi^'rieuce in every depart- ment and phase of the company's business, interrupted during the war by a mission to Russia for the American Ked Cross. Thereafter he spent a i)eriod in China and in the Philippines in connection with Liggett & Myers' l)usiness. His broad and general knowledge of all phases of the tobacco business, leaf manufacture, linancing, selling, advertising, and his exceptional ex- «'cutive ability, peculiarly tit him for the duties of his new position. Mr. C. B. Arthur has been elected a director of the company, in charge of its imrehasiiig (lei)artment. Mr. Ben Carroll, who has been auditor of the com- pany for a numlwr of years, has Ir'cu promoted- to the position of treasurer. Mr. B. J. Sanders, who has been assistant auditor, has been made auditor. Mr. H. E. White and Mr. C. W, Wilson have been appointed assistant auditors. The officers of the company are now as follows: President, C. W. Toms ; vice-presidents, J. W. Andrews, W. I). Carmichael, W. W. Flowers, E. H. Thurston, C. W. Whitaker; secretary, E. T. Noland; treasurer, Ben Carroll. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION ^ftjf^ OF UNITED STATES ""^Ujft^ JESSE A. BLOCH, Wheeling. W. V« i: •^**'1*°' aiARLES J. EISENLOHR. Philadelphia. Pa ..Ex-Preaident JULIUS LICHTENSTEIN. New York, N. Y Vice-Pre.idenI WILLIAM BEST, New York, N. Y Chairman Executiye Comnaittee MAJ. GEORGE W. HILL, New York, N. Y X?"^'*"!?*"* GEORGE H. HUMMELL, New York. N. Y X?"«'"!l*"! H. H. SHELTON, Washington, D. C X'"'n Jj ! WILLIAM T. REED. Richmond. Va y,'"'„ -j* . HARVEY L. HIRST. Philadelphia, Pa Vice-Pretident ASA LEMLEIN. New York. N. Y •• :••■•••»,• .••^Jf""'" CHARLES DUSHKIND. New York, N. Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING, Cincinnati, Ohio i;:" S'"-^*"! CHAS. B. WITTROCK, Cincinnati, Ohio Vice-President GEO. S. ENGEL, Covington, Ky Treaaurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, New York City u:-';;" -S'^-i*"! MILTON RANCK, Lancaster, Pa ■■^"*^ Xf"o'"-J*". D EMIL KLEIN, New York City Second Vice-Pretident LEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN. Newark. N. J i- ' IVr' ■ -El^-J*!!! ALBERT FREEMAN. New York, N. Y -First Vice-President II Ve5 M. MOSS. Trenton. N. J Second Vice-President ABE BROWN. 180 Gruminan Ave.. Newark. N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS* BOARD OF TRADE ASA LEMLEIN vi;;"R!IideS! SAMUEL WASSERMAN Vice-Preaidenl THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS C A JUST, St. Louis. Mo V/' -S^'-J*"! E. AsiuRY DAVIS. Baltimore Md ViceJ^SdeS E. W. HARRIS. Indianapolis. Ind v^!*?«; deS JONATHAN VIPOND. Scranton. Pa. ^ Tr!!.,Jl2l GEO. B. SCRAMBLING. Cleveland. Ohio ll!*!!^!! MAX JAOOBOWITZ. S4 Montgomery St., Jersey City, N. J .S»ecret«ry 16 53rd year THE TOBACCO WORLD January 15, 1933 R. J. REYNOLDS EARNINGS {Continued from Page 3) *' Inventories of leaf tobacco, while considerably lower in total book value at the close of the preceding year, actually represent a larger amount of tobaccos on hand and are exceptionally well balanced from the standpoint of quality and srrade, fully meeting the com- pany's exacting requirements." The part wliich tobacco companies play in provid- ing revenues for government was referred to in the president's letter. "There has never been any reduc- tion from the war-peak of Federal taxes on to])acco and cigarettes" he said, "and your company continues to play an important part in jn-oviding revenues for gov- ernment. To say nothing of substantial i)ayments on account of property taxes. Federal income taxes, state taxes and other local taxes, the Federal excise tax of $3 a 1000 on cigarettes represents more than 56 per ays j|J*21.9() a year to the Fed- eral Troasurv; wlien a State tax of live c(Mits a ])ackage is added, this consumer ])ays a total of $40.1.) a year in cigarette taxes. It is necessary, says the Index, for companies man- ufacturing cigarettes on a large scale to keep their mar- gin of |)rofit on each jiackage reasonably low. Large- scale production necessitates the use of large sums of money to buy the stocks of leaf tobacco. So far as jjublic revenue is concerned, the point of diminishing r<'turn seems to have ])een readied. If tax(»s become so high that many persons will feel they would rather roll iheir owni cigarettes than ])ay for manufactured ones, lejrislation will have substantially defeated its own ])ur- poses. It is not easy to get this into the heads of law- makers who seem to think it is always easier to incr4'ase public revenue than to cut exjHMises. — Thr Sew Yttrk Sun. All Baynk salesmen are back in their respective territories after a visit to headquarters for the annual sales meeting, and, at the present rate the orders are coming in to the factory, will establish a record show- ing for Januarv sales. James Heaney, American Cigar Company re])re- .sentative, was in town last week working through Yalin & McDonnell Cigars on "Antonio y Cleopatra" with good results. The "Antonio y Cleopatra" l)rand has been holding its market particularly well here. Benjamin Lumley, representing the "Garcia y Vega" brand, also the *'Dulce" and "Verdi" brands, was in towm last w-eek covering the trade and found the retail stands in excellent condition follow^ing the close of the holiday season and obtained some nice orders for his brands. January li3, 19.'^3 Say You Saw It in The Tobacco World 53rd year 17 TOBACCO TAXES 25.59',; OF U. S. REVENUE IIK AXXCAL KKPORT of the Commissioner of Internal Kevenue for the fiscal year ended June 30, 1932, rec<'ntly released, states that col- lections from tobacco taxes amounted to $398,578,()18.5(; for the year, a decrease of $4r3,(j97,- 884.0(), or 10.29 per cent., com})ared with the previous year. Tobacco taxes collected represent 25.5!) per cent, of tlie total internal revenue collected in 1932, compared with 18.30 per cent, for the previous year. The taxes on small cigarettes, the j)rincipal source of tlie tobacco tax collections, amounted to $317,533,- 080.02, a decrease of j|;41,:'.S2, 107.82, or 11.53 per cent., compared with the i)revious year, and represents 79.6() j)er cent, of the total tobacco collections during 1932, as compared with 80.78 per cent, for the previous year. Princii)al decreases in collections from the taxes on the other classes of mamifactures were $3,817,787.84 on large cigars, $340,78().28 on manufactured tobacco, and $344,104.47 on snuiT. The collect i(uis of taxes on ciga- rette jiajiers jind tul)es am(»unted to $1,()45,241.!>5 and $55,200.90, increases of $207,241.98 and $51,434.40, re- s|)ectively, compared with the previous year. The number of cigar factories in business on Jan- uary 1, 1931, was 0195, and tlie number in l)usiness on January 1, 193)2, was 5982, a decrease of 213 factories. The number of factories ])roducing manufactured to- bacco decreased 18 in the same period, and the number of cigarette factories decreased 4. Bonded cigar fac- tories also show a decline of 1 for the same period. TENNESSEE TOBACCO PRICES The liighest average price paid for hurley tobacco on the Morristown, Tenn., market this season was re- ported on January 7th, when 230,020 pounds brought an average of $18 a hundred. Tobacco on the (Ireenville, Tenn., market, on Jan- uary 0, sold at an average of $10 a hundred i)ounds for 475,(M)0 ])ounds, according to an estimate ])y J. S. Ber- nard, who announced that 7,(H)0,000 pounds had been sold this season on that market. GENERAL CIGAR DIVIDEND Directors of the (Jeneral Cigar Company, Incorpo rated, (h'clarr'd the r<'gular ijuarterly dividend of $1 a share on its common stock and $1.75 a share on its pre- ferred stock, last week. Tlie common dividend is payable Feliruary 1st to stock of record January 10 and the preferred disburse- ment is |)avable March 1st to stock of record Febru- arv 20th. BLOCH BROTHERS DIVIDEND Bloch Brothers Tobacco Comj)any at their direc- tors' meeting on January 5lh, took no action on the February 15th dividend on the $25 par value conmion stock. The last payment was 371 li cents made (»n No- vember 15. WALGREEN COMPANY SALES Walgreen Company reports December sales of $4,102,827 as compared* wit I'l $4,0O(;,512, a decrease of 10.9 per cent, for the same month in 1931. For 1932, sales totaled $45,834,012 as compared with $54,067,138 for 1931, a decrease of 15.2 per cent. ^MMI4L/JI»VJ!i^liiJ|gJ|ii^|>ilt|iySii2.¥i^ Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. \ii'mest vears since the firm was established. Business since the advent of the new year has been surprisingly good, denoting that the retailers' stocks were pretty well depleted during the holidays, and also the consumer was probably not as generously supplied with cigars by Santa Claus this Christmas as in former years. , y FEBRUARY 1, 1933 18 53rd year Say You Saw It in The Tobacco World January 15, 1933 4 Tobacco Merchants' Association Registration Bureau, jEV'foS'a^ Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 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 (30) titles, but less than thirty-one (31), an additional charge of Two Dollars ($2.00) will be made and so an additional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATIONS DASNEE: — 46,129. For all tobacco products. December 21, 1932. Baron Cigar Company, Brooklyn, N. V. MARVIN & BEVERLY :--46, 130. For all tobacco products. De- cember 21. \9M. Baron Cigar Company, Brooklyn, N. Y. FACTORY ASSORTS: — 46,131. For cigars and tobacco. Decem- ber 17. 1932. T. E. Norvell Cigar Co., Augusta, Ga. FAMABELLA: — 46,132. For all tobacco products. December 6, 1932. Jose Escalante & Co.. Chicago. 111. PERCO SPECIAL BURLEY:— 46,133. For all tobacco products. December 29, 1932. Charles B. Perkins Company, Boston, Mass. WALLICK HALL: — 46,134. For all tobacco products. December 24, 1932. Aaron Sulman, Brooklyn, N. Y. TRANSFERS LA PLANTINA:— 31,896 (Trade-Mark Record). For cigars, ciga- rettes and tobacco. Registered March 30, 1906, by O. L. Schwencke Litho. Corp., Brooklyn, N. Y. Transferred by American Colortype Co., Allwood, Clifton, N. J., successors, to Irving H. Waterman, Flushing. N. Y., December 28, 1932. BELINDA:— 30,407 (Tobacco World). For cigars, cigarettes, che- roots, stogies, chewing and smoking tobacco. Registered Septem- ber 10, 1914, by Pasbach-Voice Litho. Co., New York, N. Y. Through mesne transfers acquired by Deisel-Wemmer-Gilbert Corp., Detroit, Mich.. December 6, 1932. KERNEL:— 19,576 (Tobacco Leaf). For cigars, cheroots and ciga- rettes. Registered August 31, 1900, by Calvert Litho. Corp., Chicago, 111. Transferred to Lillienfeld Bros. & Co., trading as Jose Escalante & Co.. Inc., Chicago, 111.. February 4, 1901. HALCYON CLUB:— 27,070 (Tobacco World). For cigars, ciga- rettes, cheroots, stogies, chewing and smoking tobacco. Registered July 21. 1913. by Kimmig-Robinson Co., Philadelphia, Pa. Trans- ferred to H. S. Kissinger, Rothsville, Pa., January 4, 1933. PHILIP MORRIS CONSOLIDATED NET UP Annual rei)ort of I^liilip Morris ( onsolidatcd, In- corporated, placed in the mails with the January 3 dividend checks to ('lass A stockholders, shows net in- come for the calendar year ]9:J2 of $4ir),17;^, up from $385,472 in 1931. After allowin . ^ ^ _ $2.00 a Year PHILADELPHIA, FEBRUARY 1, 1933 Foreign $3.50 I ■ M ■■ ■■ " —* -M ■■!» EDITORIAL COMMENT _ _ I - ■■ ■■ — ••!• HE cigar industry is awaiting wiUi great inter- est announcement by tlie xVssociated Cigar Manulaeturers and Leaf Tobacco Dealers ot plans to stimulate the smoking ot cigars. It seems liighly improbable that under preseut con- ditions any adequate sum of money can be raised lor a n Ltionar dvertisiug campaign, and yet by comple e co- "S^^ul; through °ut the cigar ;"d-ti-y some m. hon. nf .lollars micht be made availabe tor this puipose. Everywhere there is a swelling chorus ot voices sounding throughout the nation a cry tor economy ad rcu" nc iment. But the cigar manufacturers go bland > on w ra ping their good cigars in ^ tra-ifPa'-ent cove.- r^'vhlch ctsts annually >-"-"? "^.tJ^or' $4000 UOU pc^-tinent whether this sum J^^^W.OOO or ^^j^u.ua .. 4:-. IKKMUM) in any event it is a lot ot money lu V .steS'a veVy uctti'onable decoration which destroys 1 : i^iv.dual'appearauce of the -^'^'J^^''^;^^.^, everyone from the greens keeper to the ""^'-J^ V"' cerUiuly adds nothing to the smoking uuality of c luS and an ex pe.^ that is -U-tihed liy^ the llS^nt" sSr b li r thttoil^'yrot that this e.^ pSt^ure h^ not been taken out of manulacturmg '="^^irga;:rp:.S°eL^ndngs irowhere retiect such pros- pcritV'fat --^^^';;-,<:j t^rz:T^ through its various advertising media, includ ng the • id^o hat in the interests of economy and loi the urDose of giving the smoker better cigar value i old-lasluonea cibu certainly give the ,„ good wood b"^^^^„,t!^^ ,7there is the possibility rKherwoum tinl UiLt many brands would taste the """'^IZ '\t tS^'were done, let each manufacturer The balance of the savings could be spent to im- prove the product itself. „ , ,, Certainly if several millions of dollars a year can bo spent for an article which has produced no evidence of increasing cigar sales, it is equally possible to divert this sum of money in a direction whidi I'^s delmite promise of stimulating cigar smoking The attitude of g».neral business today is to rid itself ot unnecessary expenses. And that any money spent should be de- voted to pun)oses which may reasonably bo expected to be productive of increased business, it not prohtS; The December withdrawals of slightly more than ■'.^4,000,000 cigars is the lowest December figure in „ur records, and represents a consumption ot less than 10,000,000 cigars a .lay for the whole nation in that '"""The decline in withdrawals for the calendar year of 1932 totalled more than 876,000,000 cigars. A loss " • 1.; per cent, does not sound so bad '" ' ;«f ..f.f.^^fj^^ when we note that the withdrawals tor VJol tell below 4 .-300,000,000 it is obvious that in these past tew years we have drifted .."ite some distance "^^av fi-om a nor^ mal annual consumption of six and one-half to seven liillion cigars. NEW DISTRIBUTORS FOR "BRIGGS" TOBACCO The V. Lorillard Company annonnco that F. A. Davis & Sons. Baltimore, Md,; !><;'":«' >"\P';?'\'^; f,,^" ,-cco('ompanv, Albany, X.Y., and the II. E. S.lnn t om- ,, V Worcester Mass., all well-known distributors of :, :.,n,a .t. CO products in their respective lerr. 'ores have been appointed distnbulors ot the ne^^ -iVrlcffs" smoking tobacco, the recently introduced l,ilh^?ade bnind of the I'. Lorillard C.mipauy which ^'r. meefing with a phenomenal ^^-^^;^^ ^^ it was first introduced to the consumer Ihiough a tew .elected^outlets .^ ,^^.,^^, ^ j,a U.vongh sdected outlets just as rapidly as production will permit. MOTHER OF C. A. BOND ILL (-hirles V Bond, tobaceo a-cnl tor iIh' Philippine Uov^S, was callcltn <'ali..-ma la>t -ek^^^ iho critical illness of iii< mother. In » i^/ ' ^^^^^^ '\\^^ i^s at 15 William Str..t, New lork iit>, aie m charge of Agent David i . Morns. 53rd year THE TOBACCO WORLD February 1, 1933 f)MIbADEli«>MIA. GODFREY S. TINT WEDDING N" SUNDAY, January 151 h, one of the most beautiful wedding ceremonies to be seen in Pliiladelpliia was solemnized in the crystal ball- room of the Elks Hotel hfre, when Godfrey 8. M. Tint and Miss Jeanne! te Bernstein were united in mar- liage. .Mr. Tint is the son of Harrv Tint, well-known ciiirar importer and operator of cigar stands in the Burling- ton Arcade and the Pennsylvania Building, and assists his father in the operation of the stores. The l)allroom was beautifully decorated with ferns, ]»alms and a profusion of flowers, and the bridesmaids were beautifully gowned in dresses depicting the vari- ous colors of the rainbow and carried cut Howers cover- ing the same range of colors. Among those present were Mannie Perez, of Marce- I'no Perez Ac Company, Tampa, Fla., and Mrs. J*erez; »Steve Ilerz, of the D. Kmil Klein Company, New York; Harold Dean, of the Bee Hive, AVilmingtou, Del., and Mrs. Dean; Fred Suss, of S. H. Furgatch & Comi)any, Xew York; Benjamin ('. J. Lumley, of the (Jarcia y Vega factory, Tami)a, Fla., and F. W. Sommerfeld Cigar Company, Miami, Fla., and Mrs. Lumley, and I. B. White, manager of the cigar department of John Wagner & Sons, Philadelphia distributors, and Mrs. White. After the ceremony and reception which followed, the newlyweds left for Xew York, and later sailed for Havana, Cuba. Aftei* a short honevmoon thcv will re- turn and take up their residence in 1 Philadelphia. The I'enlo Cigar Comjiany, 125 North Seventh Street, was sued here last week bv the Atlantic Citv Publishing Company to recover $201 for advertising. Among the out-of-town visitors last week in Phila- delphia were Steve Herz, D. Emit Klein Company; Frank Swick, of the Health Cigar Company; Barton Lemlein and Joe Banker; and Mr. Harris, of the Amer- ican Tobacco Company. At Bayuk Cigars, Incorporated, headtpiarters they rejiort that orders for the new "Bavuk Phillies ' jue being received in a highly gratifying volume since the reduction in the price on January 2d to five cents. The huge factory at Ninth Street and Columbia Avenue is kept running at capacity to meet the demand for this national favorite. BAYUK CIGARS, INC., WINS ANOTHER SUIT AGAINST INFRINGERS XOTHER sweeping injunction, in its aggressive campaign to i)revent infringement and fraudu- lent use of its trade-mark names, has been ob- tained by Bayuk Cigars, Incorporated, Phila- delphia. Vice-Chancellor Backes, of the Chancery Court of New Jersey, issued an order restraining (Jeorge Fine, a Newark cigar jobber, from using the word "Philadel- phia" in the manufacture and sale of a cigar known as *' Philadelphia Seal Hand Made." The Vice-Chancellor held that Fine's use of the name *' Philadelphia" was of evident intent to deceive customers into Ix^lieving that they were buying a Bayuk Cigar ])oi)ularly known as "Phillies" and "Phihulel- l)hia I hind Made." He referred to evidence that Fine had actually encouraged dealers to "palm olT his cigars to customers" as those made bv Bavuk. The Vice-Chancellor said : "The defendant \s cigars are not made in Philadelphia — they are not hand made — and ' Philadeli)liia' was selected solely with the ulte- lior purpose, later acc(mij)lished, of exploiting tlie com- plainant's business." A. Gutierrez, Newark manufacturer of liigh grade cigars was a visitor in Philadelphia last week. V. Xagel, formerly associated with Bayuk 's as their ])etroit branch manager, has iK'cn assigned as territorial manager to the San Francisco, Cal.. terri- tory, where Bayuk l)rands are distributed through Messrs. Ehrman Brothers, Horn & Company. Yahn & McDonnell report that their D. & M. No. 1 smoking mixture, a private brand of this well-known distributor, has l)een showing a steady increase in de- mand, and sales on this popular mixture more than doubled during the past year a< compared with the previous year. Ben Lumley, representing the Garcia y Vega fac- tory, Tampa, Fla., and the F. W. Sommerf<'Id Cigar Company, manufacturers of the "Dulce" and "Verdi" i)rands, Miami, Fla., distributed in this territory by John Wagner & Sons, reports <*xcellent business on his brands for this period of the year. Mr. Lumley sailed on l)oard the SS. "Howard" last Fridav for a visit to the Florida factories. February 1, 1933 Say You Saw It in The Tobacco World 53rd year LIGGETT & MYERS EARNS $23,075,212 I(J(}FTT & MYERS Tobacco Comi)any, one of the "big four" American cigarette manufac- turers, shows for 1932 net income of $23,075,212 after charges and Federal taxes, erpuil after dividends on the 7 j)er cent, preferred stock to $0.85 a share on 3,13(),939 shares of par $25 combined common and common B stocks. This compares with net income of $23,121,382 or $(5.87 a share in the preceding year. Directors of the company declared an extra divi- dend of $1 on the common and common B stocks pay- able ^Larch 1 to stock of record February 15th, a similar pavment having been made a year ago. Net sales for 1932, after pavment of the Fed- eral tax, totaled $24,749,979 against $24,810,35(3 in 1931. The company paid out over the year $1,575,987 in pre- fi'ired dividends and $15,684,015 in common dividends, adding $5,814,610 to profit and loss surplus, which to- taled $39,887,433 on December 31st. The consolidated balance sheet of the comptniy shows current assets as of December 31st of $1(55,673,- 394, including the United States (Jovernment and other bonds of $52,442,677 and cash of $20,727,8(51. At the close of 1931 current assets totaled $156,554,(588, includ- ing $20,980,450 in ITnited States Government and other bonds and $27,075,001 in cash. The balance sheet of T/iggett & Myers Tobacco Company as of December 31, 1932, compares as follows : Assets 1932 K. F. mach. & fix $24,i98'i909 Trdmks., gdwl., etc. ^ _1 Inventories 76,74(5,077 (fov.. State and mun. bonds. . 52,442,(577 Sub. CO. stock 492,584 Accts. rec, etc 8,307,24(5 I'fd. stocks 2,48(),785 Securities .... * 4,476, 1()4 1931 $23,988,007 Cash 20,727,861 90,044,(582 20,980,450 492,584 11,005,022 2,480,785 4,476.164 27,075,001 Total $189,872,304 $180,542,(596 LiAHii.rriKS VM stock $22,514,100 $22,514,100 U 'om. stock 21,4!)6,4(K) 21,496.400 * CI. C. com. stk 56,927,075 56,92(3,575 Bonds . 27,927,200 28,054,200 Accrued int 538,925 541,14 1 Divs. i»av 393,997 393,997 Tax. res.', etc 5,838,211 3,833,862 Deprec. res 12,537,288 11,718,110 Accts. pav 1,811,675 991,482 Surplus .* 39,887,433 34,072,823 Total $189,872,304 $180,542,696 A decline in accounts receivable to $8,307,246 at the end of 19:52 from $11,005,022 at the end of 1931 is noted in the balance sheet. YORK BOXMAKER WED A cablegram from Colombo, Ceylon, under date of Januarv 23d, ann(»unced the marriage of Chester G. M vers, vice-president and treasurer of Autokraft Box Corporation, York, Pa., to Miss Leah Strayer, an ac- quaintance of manv years, of the same city. Both are ]>assengers on the "Empress of Britain," which sailed from Xew York, December 4th, on a world cruise. Mr. Mvers is quoted as stating that they had de- rided on a quick wedding to make the i est of the cruise a wedding tour. Dispatches state that another cere- mony took place in the ball room of the "Empress of Britain," following the civil wedding. T. J. MALONEY DEAD llOMAS J. MALCJNEY, former president of the P. Lorillard Company, Incorporated, tobacco manufacturers, and one of the most generous financial supporters of the Roman Catholic ( 'hurch, died of pneumonia on January 18th in the Holy Xame Hospital in Teaneck, N. J. He was seventy-four years old. Mr. ^laloney's death followed closely upon that of his wife and fellow-philanthropist, Mrs. Mary Smith M alone V, who died Januarv 12th in their home at Sad- die Kiver. Mr. Maloney insisted upon attending his wife's funeral, although physicians advised him against leaving the house. He Ixicame seriously ill over the week-end and was taken to the hosi)ital, where his con- dition grew steadily worse. For the last six months he had been suffering from heart disease. At the time of his death ]\Ir. Maloney 's principal business activities were centered about his chairman- ship of the board of directors of the Hudson County .Vational Bank in Jersey City. Most of the closing years of his life were devoted to philanthropic enter- prises, which had won his knighthood in the Order of St. (Jregory. Bishop Thomas J. Walsh, of the Roman Cntholic diocese of Newark, estimated today that in IM.'U alone Mr. Maloney gave the diocese upwards of $1,000,000 in cash and property. His rise in the ranks of tobacco executives was ra]»id. Thomas Fortune Ryan, the late financier, who was a director of the American Tobacco Company and a close friend of Mr. Maloney, once said, "He knows more about tobacco than any man living." Mr. Maloney was born in Covington, Ky., in the heart of the State's tobacco b^lt. He was associated with the industry from boyhood, coming finally to man- age the interests of the P. Lorillard Company in Ken- lucky. In 1893 the firm sunrnnoned him to l)e superin- tendent of its Jersey City plant, and when the Lorillard Company l>ecame a part of the American Tobacco Com- pany, Mr. Maloney was made first vice-president of the corporation. Later the American Tobacco Company was dis- solved and the Lorillard Company became an individual unit again, with Mr. Maloney as its first president. He retired from office in 1924. Besides being chairman of the Hudson County National Bank he was a director of the Emigrant Savings Bank of New York. After he became wealthy Mr. Maloney was a fre- quent and generous cash contributor to the cause of Irish freedom, an enterprise in which his wife shared. He was also a member of several local Irish- American organizations. For this work and for his church philan- thro])ies Mr. Maloney was decorated with the grand (TOSS of the Order of *St. Gregory by Pope Pius XI. In 1928 he gave the Newark diocese $250,(X)0 for the construction of an addition to the Seminary of the Innnaculate Conception in Darlington, where priests of tJH' diocese are educated. He made a similar gift to (b'orgetown I^niversitv in the same year. Together with his wife, Mr. Maloney contributed $300,000 for the building of the Villa Marie Clare, a retreat in Saddle River which they presented to the Sisters of the Peace. Funeral services were held at 9 A. M. Saturday from his home on East Saddle River Road, Saddle River. Requiem mass followed at 10 A. M. at St. Jo- ..e|)h's Villa there. Intei-ment was in Holy Cross Cemetery, North Ar- lington, N. J. 53rd year THE TOBACCO WORLD February 1, 1933 ou s about the "t •^T^ 0- A \ N X i J / A great deal of confusion has been caused by certain represen- tations made in cigarette advertising. A clamor of competitive claims has bewildered the public. We have received hundreds of letters asking us the truth about the conflicting claims of various brands. Because Camel first popularized cigarette smoking, because Camel has sold more billions of cigarettes than any other brand, we were the natural people to write to. And we are the natural people to tell the facts about cigarettes. We have always offered an honest cigarette, honestly advertised. 1. Question: What is the mildest cigarette? Answer: The fact that a cigarette !*■ insipid and tasteless does nut mean that it is mild. The fact that it has been artificially fla- vored or scented does not mean it is mild. Mildness means that a cigarette i«* so made that it is gentle and non-irritating luilfn/ut iarrifitr of fltivur. This is almost entirely a question of the quality of the tobaccos and the skill in their blending. Practically all of today s popular cigarettes are manu- factured and rolled in much the same way. The difference comes in the tobaccos that are used. While the irritating effects of cheap, raw tobaccos can he removed to some extent by intensive treatment, nothing can take the place of the more expensive, naturally fine tobaccos. The mildest ciga- rette is the cigarette that is made of the best tobaccos. It's the tobauo that counts. 2. Question: What cigarette has the best flavor? Answer: There are just three factors that Control the flavor of a cigarette. The addi- tion of artificial flavoring. The blending of various tobaccos. And the quality of the tobaccos themselves. Quality is by far the most important. Cheap, raw tobacco can be disguised in part bv artificial flavoring. Hut It can never rr/ual the goodnesi of mild, ripe, rnstly tohacros. Adding a number of poor things together will not make a good thing. And when yuu consider that domes- tic cigarette tobaccos vary in price from 5< a pound up to 4U< a pound, and imported tobaccos from 50< to $1.1 5, the difference in cigarette flavors is readily apparent. To- bacco men long ago learned to choose, for flavor, the cigarette blended from the cost- lier tobaccos. It's th» tobacco that counts. 3. Question: What cigarette is eas- iest on the throat? Answer: The easiest cigarette on your throat is the cigarette that is made from the choicest ripe tobaccos. Cheap grades of to- bacco are, as you would naturally expect, harsh in their effects upon the throat. And there is a peppery dust occurring to some extent in all tobaccos. Finding its way into many cigarettes, this dust has a decidedly irritating effect. A special vacuum cleaning process has been developed that removes all trace of dust. The absolute rejection of inferior tobaccos and elimination of this dust represent the highest standards ever attained in cigarette manufacture. The cigarette that is blended from the most ex- pensive tobaccos under these modern con- ditions is as non-irritating as any smoke can possibly be. It's the tobacco that counts. February 1, 1933 Say You Saw It in The Tobacco World 53rd year now cigarettes you smo 4. Question: What about heat treating? Answer: This is one of the real supersti- tions of the tobacco business. All cigarette manufacturers use the heat-treating proc- ess. But harsh, raw, inferior tobaccos re- quire considerably more intensive treat- ment than choice ripe tobaccos. High tem- peratures conceal, to some extent, the harsh effects of low-cost tobacco, although this parching process may produce a rather flat and lifeless flavor. But neither the heat treatment nor any other treatment can take the place of good tobacco. Heat can never make cheap, inferior tobaccos good. It's the tobacco that counts. 5. Question: What cigarette is coolest? Answer: Many myths have been woven around "coolness." The facts are simple: Coolness is determined by the speed of burning. Fresh cigarettes, containing as they do l2Vr moisture, burn more slowly than parched, dry cigarettes. That is why they smoke cooler. This makes the method of wrapping very important. Improperly wrapped cigarettes begin to dry out as soon as packed. They smoke hot and dry. The Flumidor Pack, although more expensive, gives protection ordinary cellophane can- not equal. It is made of 3-ply, MOISTURE- PROOF cellophane, tailored snugly to the package, and WELDED into a seamless envelope. Air cannot get in. Freshness can- not get out. The cigarettes are always in prime condition. An illusion of coolness can be achieved by adding certain chemicals to tobacco. But even chemicals cannot do more than mask the heat of quick-burning, dry tobaccos. The coolest cigarette is the fresh- est cigarette — the least irritating, the one that has the costliest tobacco. A cigarette blended from expensive tobaccos tastes cooler than one that is harsh and acrid. It's the tobacco that counts. 6. Question: What Is the purest cigarette? Answer: All popular cigarettes are made under sanitary conditions unsurpassed even in the packing of foods. All cigarettes are made with practically identical modern machinery. Uniformly fine cigarette paper is used. If any single manufacturer should claim superior purity it could only be in- terpreted as a confession of weakness un- less he pinned his claim exclusively on the tobacco he used. Purity in a cigarette lies in the tobacco used. Choice grades of tobac- co, from which even the fine dust of the tobacco itself has been removed, are less irritating, therefore "purer" than inferior tobaccos. It's the tobacco that counts, 7. Question: What about blending? Answer: Even if other manufacturers should in the future use the finer, more ex- pensive tobaccos which go into Camels, they would still be unable to duplicate Camel's matchless blending. Tobaccos are blended to give a cigarette its own distinc- tive individuality. The characteristic deli- cacy and flavor of the Camel blend have won not only the esteem of the American public, but the sincere admiration of other cigarette manufacturers, who have spent hundreds of thousands of dollars and years of effort trying to discover how the costly tobaccos in Camels are blended. But in vain. Camel's matchless blend is a priceless asset. Yet its fine full flavor is made pos- sible because Camels use more expensive tobacco. It's the tobacco that counts. It is a Fact/ well known by leaf tobacco experts, that Camels are made from finer, MORE EXPENSIVE tobaccos than any other popular brand. We actually pay MILLIONS MORE every year to insure your enjoyment. (Signed; R. J. REYNOLDS TORACCO COMPANY Wtn%ion-Sa\om, N. C. ^M _ NO TRICKS .JUST COSTLIER TOBACCOS ;^aSS»v?^ Copyright. Iu33, R. J Reynolds Tobscco Company BLEND 8 53rd year THE TOBACCO WORLD February 1, 1933 February 1, 1933 THE TOBACCO WORLD 53rd year News From Congress _ 'AND Fe D E R A L Departments DOPTION of the manufacturers' excise tax is seen by Secretary of the Treasury Ogden L. Mills as the only possible method of balancing the budget for the coming fiscal year, in view of the exhaustion of the field of new taxes by the reve- nue law of 1932. Pointing out that experience has shown tliat many of the taxes in the present revenue law are difificult of administration and "not particularly productive," Mr. Mills declared that some are inequitable and unjustifi- able in their present form and could be eliminated by the adoption of a general manufacturers' sales tax at a comparatively low rate. There will, however, be no further tax legislation under the Hoover administration, the House Ways and Means Committee, by a party vote, having rejected all proposals for tax revision at this time, so that the next revenue bill will be enacted under the aegis of the Roosevelt administration during the special ses- sion of Congress which is expected to convene after the middle of April. In the meantime, however, there will be some study by Congress of the question of duplication of taxation, discussed at length in a 300-page report of a House committee in which the state taxes on tol)acco are included among many other levies adopted by both Federal and State governments. While the report makes no recommendations, it is conclusively shown that duplication of taxation has become a problem which must be dealt with if any well-defined national tax policy is ever to be adopted. There are fields, the report points out, which in the past have been exclusively used for Federal taxation and others which have been considered the field of the states — tobacco being a good example of the first and gasoline of the second — but in recent years, with an increased demand for new revenue, each has in- vaded the field of the other. The result has been that over-taxation has ma- terially reduced possible revenues, it being pointed out in the report that the consumption of cigarettes in tobacco-taxing states is heavily under that of the no- tax states. Ct] CS3 Ct3 Few of the nex taxes included in the 1932 revenue law are deductible from the gross income of individ- uals in the making of income tax returns, under a rul- ing by the Commissioner of Internal Revenue. Most of the taxes, it was pointed out, are imposed by the law on the manufacturer and paid by him, and are not regarded as taxes paid by the consumer of the commodity, even though they may be passed on From our (Washington Bureau 62ZAlbee Building to him in whole or in part in the price of the mer- chandise. Under this interpretation, taxes paid on cigarettes, gasoline, lubricating oil, tires and automobile acces- sories, candy, jewelry, etc., are not items which the individual taxpayer may deduct from his income as taxes paid by him. In the case of the taxes on electricity, telegraph and telephone messages, safety deposit boxes, club dues, admissions and checks, and the various stamps on securities and deeds, however, the law places lia- bility upon the individual and payments may be de- ducted from income. In connection with the gasoline tax, it is explained, there is a distinction between the Federal and state levies, the former being imposed on the manufacturer and not deductil)le by tlie purchaser while in some in- stances the latter is imposed on the purchaser and so deductible bv him from his income. ^^^%.^ ^hiA^ ^bA^a CJ3 CjJ C?3 Legislation amending the bankruptcy law so as to permit of reorganizations which will insure the con- tinued operation of going concerns which may find tiicmselves unable to meet their debts and avoid the waste incident to the licpiidation of assets through bankruptcy proceedings is expected to be adopted be- fore adjournment of the present session of Congress. Bills now pending in both the Senate and House of Kepresentatives set up new machinery whereby in- dividuals unable to meet their debts in full may secure compromises and extensions while corporations may be reorganized, under j)lans which must be accepted by two-thirds of each class of creditors and stock- holders involved and offered for the approval of the court. The legislation is designed to meet a situation called to the attention of Congress by Attorney Gen- eral Mitchell in December, to deal with which Presi- dent Hoover urged immediate action in a special mes- sage last month. "The j)rocess of forced liquidation through fore- closure and bankruptcy sale of the assets of individual and corporate debtors who, through no fault of their own, are unable in the i)resent emergency to provide for the payment of their debts in ordinary course as they mature, is utterly destructive of the interests of debtors and creditors alike, and if this process is al- lowed to take its usual course misery will be suffered by thousands without substantial gain to their cred- itors, who insist upon liquidation and foreclosure in the vain hope of collecting their claims," the President declared. (Continued on page 13) Mm ness an a K^naracter % I 's toas Cxtpr . ISSS.'Rm Amerion Tohteco C« 10 53rd year THE TOBACCO WORLD February 1, 1933 PHILIPPINE INDEPENDENCE MEASURE A bill to grant conditional independence to the Philippine Islands (H. R. 7233) has been passed in both houses over the Presidential veto. Under its provi- sions, however, it does not take elTeet until accepted by a concurrent resolution of the Philipi)ine Legislature or bv a convention calUnl for the purpose of passing upon tiuit question as may be provided by the IMulippine Legislature. •,• • t • By the terms of the measure, the Phdippine Legis- lature" is to provide for the election of delegates to a constitutional convention, ^vhich shall meet withm one year after the enactment of the act to formulate a con- stitution. After the constitution is drafted and ap- ])roved bv the convention, it is to be submitted (withm nvo years after enactment of this act) to the President of the United States, who shall determine if it naeets the requirements contained in the bill. If the President of the United States certifies that it does meet the re- quirements, it shall be submitted to the people of the Philippine Islands at an election to be held within tour months after such certification. If the constitution is adopted at the election, an election of Philip])ine ofHcers shall take place withm not less than thirty days, nor more than sixty days after the Governor General issues his proclamation (not later than thirty davs after the fate of the constitution is known), tliat the constitution has been adopted. After the result of the election of officers is certified to the President of the United States, the President shall issue a proclamation announcing the results of the election, and upon the issuance of such proclamation the new government shall take hold. Trade Relations After the inauguration of the inde])endent Philip- l)ine Government, trade relations between the United States and the Philippine Islands shall be as now pro- vided bv law, subject to the following exceptions (spe- cial provision is made for duties on sugar, cocoanut oil, yarn, cordage, etc.) : The Philippine Government shall impose and col- lect an export tax on all articles exported to the United States, free of duty under the provisions of existing law (this, of course,*applies to leaf tobacco, cigars, etc.) as follows: , „ , e During the sixth year the export tax shall Ik? 5 per cent, of the rates of duty which are required by the laws of the United States, to be levied, collected and paid on like articles imported from foreign countries. During the seventh year 10 per cent. During the eighth year 15 per cent. During the ninth year 20 per cent. After the expiration of the ninth year, the duty shall be 25 per cent. On the Fourth of July immediately following a period of ten years from the date of the inauguration of the new government, the President of the United States shall surrender all authority, etc., and the Phil- ippine Islands shall be declared a separate and inde- pendent government. After the Philippine Islands become free and inde- f)endent there shall be levied, collected and paid upon all articles coming into the United States from the Phil- ippine Islands the rates of duty which are required to be levied, collected and paid upon like articles imported from other foreign countries. There is, however, a proviso ihat at least one year l)rior to the date fixed in this act for the independence of the Philippine Islands, a conference is to be held be- tween the Philippine and the United States authorities CALENDAR YEAR WITHDRAWALS FOR CONSUMPTION — Decrease Calendar Year -{-Increase 1932 Quantity Cigars: (^lass A United States .... 3,490,540,050 Puerto Rico 69,996,735 Philippine Islands 173,966,740 Total 3,734,503,525 Class B— United States .... Puerto Rico Philippine Islands Total _ 197,244,330 — 60,437,375 -f 6,497,145 — 251.184,560 — 117,855,809 — 1,547,100 _ 624,165 52,025,911 191,000 698,142 52,915,053 — 120,027,074 Class C— United States Puerto Rico Philippine Islands Total dassD— LTnited States Puerto Rico Philippine Islands JL otai ,.......• Class E— United States Puerto Rico Philippine Islands J. oral • Total All Classes- United States .... Puerto Rico Philippine Islands Grand Total... Uittle Cigars: United States .... Puerto Rico Philippine Islands xoiai .• •• 838,930,934 2,904,100 304,820 — 523,198,466 — 2,391,560 — 231,042 842,139,854 — 525,821,068 56,135,385 4,200 3,876 — 29,964,073 — 45,400 — 950 56,143,461 — 30,010,423 5,258,773 38,087 5,296,860 — 7,713,857 -f 7,738,797 1,500 26,440 4,442,891,053 73,096,035 175,011,665 — 876,001,475 — 64,422,935 -f- 5,667,428 4,690,998,753 — 934,756,982 281,367,001 4,550,000 — 55,806,346 — 3,450,000 285,917,001 — 59,256,346 Cigarettes-^ United States . . . .103,585,888,866 Puerto Rico 4,103,040 Philippine Islands 1,467,047 —9,863,159,791 — 5,926,960 — 573,333 Total 103,591,458,953 —9,869,660,084 Large Cigarettes — United States .... Puerto Rico Philippine Islands Total — 1,943,135 _ 979,500 9,154 3,561,098 553,000 11,054 "4425,152 — 2,913,481 Snuff (lbs.): All United States. 36,412,004 Tobacco, manufactured (lbs) : United States .... 312,273,049 Philippine Islands 541 Total — 3,131,092 — 15,722,648 ■^ 619 312,273,590 — 15.723,267 for the purpose of formulating recommendations as to future trade relations between the United States and the Philippine Islands. February 1, 1933 Say You Saw It in The Tobacco World 53rd year 11 NEW CUSTOMERS FOR YOU FROM THIS 1933 SIR WALTER RALEIGH NATIONAL ADVERTISING up V i%o?r:; cav* Xift< J^ ^*"' .•a-'X .• ^ I ^.' '" ,*'••' 1**^ 1 W»»< *" *.«►•'»' 1^ HJ^ *«h" «.•<•"' .„t .•.VM- ,00*^ V U't 'S k-'" sllll«»*\ i.-i v^ <.-v-V. >' idvlcc How(to keep a wifc\on 7/4 cents a day ^ WAR ■m / -1^ k fi^ -iv THIS TOBACCO has become a best seller in four years because of steady national ad- vertising, tobacco quality, and fine cooperation from merchants all over the country. The 1933 advertising of Sir Walter will run more times in a greater number of magazines. This means more of your customers will see this advertising, which has alreadyproved itself a good selling formula for this popular tobacco. With this extra advertising support, 1933 will be a good selling year for merchants who push Sir Walter Raleigh. P\ \ \ iS-^- ■W t„|. " -law, •U Owlr )»«• J.. •«4 I ■w. WW. .**««U WW. •*"•-'.<,, s-i*. ■*•«* •^.. •«t «*_ Tj.... •t*,.- '• »j *.. mULICMi miu ( 'i'- *\ii ITi ^UttJtl V/i **Ji BROWN & WILLIAWSON TOBACCO CORP., LOUISVILLE, KENTUCKY Brown & Williamson products have been designed to bring you the most profit in aU lines and prices. New products are added to fit the times. Old established products are exploited by strong advertising. Are you getting your share of profit from these live, selling items-Bugler Tobacco. Raleigh Cigarettes. Golden Grain Tobacco. Wmgs Cigarettes, and Target Tobacco? 53rd year THE TOBACCO WORLD February 1, 193:5 RETAIL STORE PROBLEMS So many persons are miauare of the mam, aids to husiness which have been carefully Vrepare^Jy the United States Government, and so many of those wiio are aware of these facilities fail to take advaniage of them, that le are luhlishing the following sttulws as an aid to the retailer.— Editor. r,.n^,l <^in,tet (This Stiidv prepared m the the Inited States Department of Commerce, Dornestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) VEHICULAR TRAFFIC CONGESTION AND RETAIL BUSINESS {Continued from previous Issue) Relief Measures for Merchant's "Back Door" The merchant's "back" or delivery-entrance door is another important traffic contact point and t^vo re- lief measures have also been put into use by merchants and others. . , ^ t • 4^« „« The first measure has attempted to eliminate as much as possible contact between delivery trucks, while loading and unloading, and moving street ^1;^^./^ analysis of 172 stores located m our largest ^'^^les shmxs that definite and efficient means ot reducing ^l^^l/yf^y- traffic interference are in use by the ma.iority ot hese stores. Kemote delivery stations, cooperative deliv- erv svstems, and various olT-the-street loading and un- loading methods have been found efficacious in meeting this phase of the problem. , ,,i , ^ »» The second measure of value to the ^'back door of merchandising has l)een to avert as much as possible contact between deliverv trucks m transit and other moving street traffic. Avoidance of busy streets, par- ticularlv at rush hours, by delivery trucks has been found to be of considerable value in reducing street traffic congestion. Introduction A prominent merchant of a large eastern city re- cently said: '4f merchants do not do something to re- lieve* the present traffic situation, within fifteen years there will be no down-town shopping districts ot any importance." Such a statement, coming from a think- ing American merchant, gives some idea of the seri- ousness, enormitv, and urgency of the traffic problem in retail areas from the merchant's point (.1 view The volume of traffic is ever increasing. A higli- wav transportation survey conducted recently in one State, which from the point of view ol' traffic is said to be typical, slu)ws that more than oiic-lialt ol this State's traffic uses but 7 per cent, of its mad mileage. This indicates the amount of traffic concentrated in and around cities. Our cities continue to grow, and the problem grows with them. The larger cities with the most acute traf- fic conditions have pushed out from their centers of population, establishing residence communities and si- multaneouslv those classes of business which are most necessary to community life. In other words, our larg- est cities are decentralizing, and traffic, having more space at its disposal, has taken a step toward solution. But it is a step which brings its own prol)lems, and with the many other pliases of the inatter expressing themselves in economic terms, we lind tliat business areas are duly concerned. The Imsiness area is a zone where all t rathe ditn- c'ulties exist in a highly concentrated way. For this reason it has been the area of greatest experimenta- tion. Traffic regulations, zoning, one-way streets, throuirh-traffie thorcnighfares, widened streets, under- ground transi)ortation, underground streets, systems of sidewalk subwavs, and numerous other ways and means have been used in trying to solve the ]>roblem. Business is dependent upon traffic, but this very traffic which brings business will, beyond a certain stage, also detract from it. Activity is not always synonymous with business. How to take care ot this traffic* whicii can not naturally take care of itself, is the prol)lem before business. Xeirlect of this means loss, and no recognition of its appriKich nn^ans an increased future loss. There is then an economic urge for the solution of tlie trafhc i)r(.blein in retail areas. The thought expressed by the merchant referred to above and similar expressions by other merchants emphasized the requests for the information presented in this study. That present street traffic conditions are a disturbing element in most retail areas seemed to be the consensus of opinion. Just what the relationship is l)etween traffic and business, and what the factors are underlying it, have been problematical. Perhaps there has been no ques- tion of importance to retail business upon which there has l)een such a diversity of opinion. The very fact that traffic conditions vary in every retail area, and even every retail-store location, has brought forth an almost equal numl>er of oi)inions on this suhject of far- reaching interest and growing importance. In a consideration of the problem-thaf is, the re- lation between traffic and retail business— the follow- ing questi(ms arise: TTir^f.— What is the nature of the ])roblemf SecomL—^yhove does it exist ? Third. — AVhat is its magnitude? It is the object of this study to answer the above questions, exhausting at the sain<' time any consecpien- tial factors which might (h'velop. Research has confirmed the fact that tiie dominant and most universal cause of street tratlic disturbanct' is vehicular congestion. This study has concerned it- self entirely with this cause of the prol)leni. There an* other causes worthy of considi'iation, a study of which would afTonl an opportunity to gain further informa- tion of value pertinent to tiiis phase of tlu' subject. Source of Material Since the problem of traffic is one which varies in every city in every part (»f the country, dilTering in cities with the same j)opulation and even within sec- tions of each city, it was desired that the data for this report come from as wide a sccqu' as possibh*. Conse- quently, the material was gathered by means of a (pies tionnaire. ., , • , .. In this way, merchants representing the kinds ot merchandise in* common use, with locations in every (Continued on Page 14) February 1, 1933 Say You Saw It in The Tobacco World 53rd year 13 PENNSYLVANIA EXPECTS NO CIGARETTE FINES Casting about for funds, the INMinsylvania Legis- lature finds at least one source of revenue apparently no longer ])roductive. The 1933-35 State budget, now betore the Asseml)l>, estimates that nothing is likely to be received in hues for breaking cigarette laws. . The State received $'i.) in such penalties in the IJ-/- 1912!) biennium and $75 in 19129-1931, but the 1931-1933 hiennium has been unproductive of any such hiK's; so apparently budget officers have given up hope ot casU- inir in on violations, if any, of that law. The statute provides a $l25 fine for convictions ot persons who sell cigarettes to children under sixteen years of age. AXTON FISHER TOBACCO EARNINGS rat The \xtoii Fisher Tobacco Company, Incorpo- cd for 1!)32 shows net i)rotit of $1,41(;,!)52 after depre'ciation, taxes, interest and other charges, compar- ing with net profit of $(;()5,552 in 1931. For the quarter ended Decenlber 31st, iH't profit was 5fH()8,S;20 atter de- preciation, taxes and interest, compared with ^lo-v^U^ in the linal quarter of the i)receding year. News from Congress (ii (Continued from page 8) The passage of legislation for the relief of indi- vidual and corporate debtcns at this session ot Con- gress is a matter of the most vital importance. It has a major bearing upon the whole economic situation in the adjustment of the relation of debtors and cred- * ^*''*qn the great majority of cases, li(iuiaation under present conilitions is so futile and destructive that vol- untarv reailjustmeiits through the extension or com- imsiti'on of individual debts and the reorganization of corporations must be desirable to a large majority ot the creditors," he explained. . »*Umler existing law, even where majorities ot the creditors desire Jo arrange fair and equitable re- ailuistmeiits with their debtors, their plans may not be consummated without prohibitive delay and expense, usually attended bv the obstruction ot mmonty cred- itors who oppose such settlements in the hope that the fear of ruinous liquidation will induce the immediate settlement of their claims. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCK. Wheeling. W- V«. • •••. Ex'-pJelideSt CHARLES J. EISENLOHR. Philadelphjj. Pa Vice- K« dent JULIUS LICHTENSTEIN. New York. N. Y ^:r--V':^\\re(^mmittct WILLIAM BEST. New York. N. Y ..^. Chairman ^xecutpre Comn. e MAJ. GEORGE W. HILL. New York. N. Y V cePresident GEORGE H. HUMMELL. New York. N. Y Vce- President H. H. SHELTON. VVashington. D. C ."."vice-Pre.ident WILLIAM T. REED. Richmo"d. Va. Vice Pretident HARVEY L. HIRST. Philadelphia. Pa ^ ..Treasurer Headquarters. 341 Madison Ave.. New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING. Cincinnati. Ohio vici-PleJideSt CHAS. B. WITTROCK. Cincinnati. Ohio .W!. Treasurer GEO. S. ENGEL. Covington. Ky. .;••••; Secretary WM. S. GOLDENBURG. Cincinnati. Ohio aecreiary ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS. New York City Flm" vi^^pIelK MILTON RANCK, Lancaster. Pa second Vice- President D. EMIL KLEIN. New York City sTcretary-Treaturer LEE SAMUELS. New York City Secretary NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN. Newark. N. J. • • ■ pj* ;• ' vice-pIesideSt ALBERT FREEMAN. New York. N. Y -^irsj . p^^jj^, lUVEN M. MOSS. Trenton. N J. .... ■••;.•••,■ Secretary-Treasurer ABE BROWN. 180 Grumman Ave.. Newark. N. J. .,„...«..• secretary NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE President ASA LEMLEIN ■• ■ • Vice-President SAMUEL WASSERMAN "" THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS -, President C. A. JUST. St. Louis. Mo. ^- Vice-President E. ASBURY DAVIS. Baltimore. Md Vice-President E. W. HARRIS. Indianapolis. Ind. Vice-President JONATHAN VlPOND. Scranton, ?»■■•■. ..Treasurer rm B SCRAMBLING. Cleveland. Ohio ;,•.• V^'V . Tobacco, manufact M . lbs. 1931 14,288,835 149,470 35,978 60 1,116 1932 10,983,280 47.873 25,508 • ••••••• 300 T4:475,459 11,056.961 1,104 211,920 24 86,370 51 Note: Quantities of tax-paid products shown^ in above statements are indicated by stamp sales for the month. Statement of Collections for December Peremhcr Snurrrs of Prrnmr l^^U^ nn d. tJ'a/q 71 P;«nr^ • • $ 950,475.50 $ 756,648.71 p.^'^I^.te. .21,889,703.19 21,960.082.23 RnuiT .' : : '. ". ■ ■■■.■•.• 477,237.76 568.924.35 Tobacco, chew i n g and .^772,242.88 smoking ^,\f^,},^i' .*f> Cigarette papers and ^^.^«. ,^ lO'^^iqq tubes ; 115,931.40 l^ML,f\f Miscellaneons, relating to ^^^ ^^ tobacco • ' LILLIAN U. S^BOND CIGARS CIGARS U p. LORILLARD GO'S 2 *<"• 5^ Cigars These brands formerly sold at 5c each . . . now reduced to fit today's purse . , . NEW URRENC CIGARS 2 for 5c EstablUhed 1886 (€ BEST OF THE BEST 99 M,-f.c»ur>d b. ^ SANTAELLA & CO. Office. 1181 Broadway, New York City FACTORIES: Tampa and Kep West, Florida J SMOKING NOW GENERAL ON BROADWAY Smoking is now general in the large Broadway movie honses, according to Variety, leading weekly ot the entertainment world, which m a recent issue re- ^^^ '*Vor the first time in the Broadway film houses, .moking is allowed almost universally in the balconies and mezzanines. It 's a departure that cimie when com- pctition forced a reduced b. o. (box office) scale mto ctYect everywhere." , . Permitting smoking in motion picture theatres is in keeping with the trend of the times, and especially timely l^ecause the price of cigarettes has recently been cut to'* two for a quarter." . . . ,- The forgotten smoker is certamly coming into nis own today. 16 53rd year THE TOBACCO WORLD February 1, 1933 The above creation by Howard Chandler Christy for the Amer- ican Tobacco Company, was recently displayed in the lobby of the Hotel Carling in Jacksonville, Fla., where it attracted widespread at- tention and much favorable comment. The reproduction has now been seen by millions of people throughout the United States dis- played on billboards and in many magazines, and has done its bit toward boosting the sales of the popuplar "Lucky Strike" cigarettes. Trade Notes Harry Catlin, associated with a branch sales or- ganization of Bayuk Cigars, Incorporated, was a visi- tor at headquarters last week. C. W. Saunders, representing the Cortez Cigar Company, was a visitor at Yahn & McDonnell head- quarters last week. E. W. Burnside is in Pittsburgh doing some pro- motional work on Bayuk cigars through the X. Rice Cigar Company, Bayuk distributor for that territorv. The Bethlehem Tobacco Company, Betiilehcm, Pa., last week filed a voluntary petition in l)ankruptcv here. Liabilities, $38,733 ; assets, $13,413. Ref^M-ee, (ieorge F. Coffin. Daniel L. McCarthy, Bethlehem, Pa., counsel. Aldus K. Koyer, cigar manufacturer, Kplirata, I*a., filed a voluntary petition in bankruptcy last week b<*- fore Judge Welsh, in this city. No schedule of liabili- ties or assets was filed. Referee, Martin K. Musser. Fred Eisner, assistant sales manager ui Waitt & Bond, Incorporated, manufacturers of the "Bhick- stone" cigar, was a visitor at the local distributor's headquarters, Yahn & .McDonnell, last week. ** Black- stone" sales in this territory have been holding up remarkably well in spite of business conditions. CAMEL CAMPAIGN BREAKS IN NEWSPAPERS AXUARY 1()TH 'U/amel" cigarettes published the ''Truth Al)out the Cigarettes You Smoke" to the whole country — through the medium of 1200 newspa])ers, followed by the same copy in the national weekly magazines. This opening adver- tisement marks the return of ^H^amel" advertising to the daily newsi)aj)er field. The new campaign is a radical departure in ciga- rette advertising. The first advertisement— full ])age display — makes a frank, matter-of-fact approach to the cigarette question. Headlining the copy, ''You Should Know the Truth Ahout the Cigarettes You Smoke," it goes on to clear up tlie "confusion caused by certain representations made in cigarette advertising." It defines mildness, liantr, throat case; explains heat treat hi fj, ronluess, puritif and hlendiug. Tlie first l)urst of ''truth copy" is l)eing followed uj) l)y a series of advertisements which dispels illusions and superstitions about cigarettes. The "Houdini's Milk Can Hscape" is typical of this higlily dramatic style of the coi)y. The magic copy will apj/ear in 12(K) newspai)ers, with a consistent magazine background in an impressive list of publications. A feature of every new **Camel" advertisement is the following statement: "It is a fact, well known by leaf tobacco experts, that Camels are made from finer, mohk opknsive to- baccos than any other popular brand." This new spectacular campaign in newspapers and magazines evidently indicates an aggressive advertis- ing i)olicy on the part of the R. J. Keynolds Tobacco Comj)any for 1933. H. D. Soyster, of Bayuk Cigars, Incorporated, is doing some splendid work in behalf of Bayuk brands through the W. H. Straus, firm, Altoona and Johns- town distributors. The Auburn Tobacco Company is closing a suc- cessful drive on "Bayuk Phillies" and "Havana Rib- bon" in their territory, assisted by Bavuk salesman, K. T. Clifford. Kid Nichols, representing the "Belinda" factorv in Havana, was in town last week, and is leaving from New York City this week on a visit to factorv head- quarters in Havana. John Wagner & Sons report a i)articularlv good demand for their "Wagner No. 3" and " Monticello" smoking tobacco and also on their "Monticello" ciga- r^'ttes. These l)rands are selling far beyond expecta- tions and many favorable reports are being received on \\w high qualiiy and mildness of these items. John L. McGuerty, representing the "Romeo y Julieta" factory in Havana, was a visitor at John Wag- ner & Sons, local distributors of the brand here, last week and reports that business on his brand during the Christmas season just past was the finest they have had in many years. Mr. McGuerty is leaving on Thursday for a visit to factory headquarters in Havana. Februarv 1, 1933 "OLD GOLD" RETURNS TO RADIO FTER a long absence from radio, "Old Gold" returns to the WABC-Columbia network on Wednesday, February 8, at 10 P. M., Eastern Standard Time, with a weekly half-hour pres- entation that will feature Fred Waring's Peniisyl- vanians and a popular comedian yet to be selected. This orchestra is the last of the outstanding musi- cal organizations to capitulate to radio, and it will be i-ecalled that it was through the efforts of the same sponsor that Paul AVhiteman first became a regular radio attraction almost four years ago. Fred Waring's Pennsylvanians, comprising twenty-one versatile musicians and singers, is one of the stage's most popular and spectacular bands. For many years they have been a stellar vaudeville attrac- tion, and an integral part of such musical comedies as "Hello Yourself" and "The New Yorkers." The Waring group also has appeared in several motion j)ic- tures, and last year played a twenty-week engagement at the Boxy Theatre. Waring founded his orchestra while a student at Penn State College. Four undergraduates, including Fred, were in the original band. All of them are still with the outfit. Besides Penn State, members of the band hail from the campuses of nine otlier colleges. They feature col- legiate interpretations of popular and symphonic num- bers, their olferings running the ganuit from classical music to melodious satire. Announcement of the comedian who will a[)pear with Waring's Pennsylvanians on the "Old Gold" se- ries will be made within a few days. The Columbia outlets already have been arranged in the following cities: Akron, Albany, Baltimore, Bos- ton, Butfalo, Cleveland, Fort Wayne,' Hartford, Louis- ville, New York City, Philadelphiii, Pittsburgh, Toledo, Washington, Miami, Orlando, Tampa, Los Angeles, Portland, Ore.; Sacramento, San Diego, San Francisco, Santa Barbara, Seattle, S|)okane, 'J'acoma, Birming- ham, Charlotte, Chattanooga, Memphis, Minneapolis, Oklahcmia City and Salt Lake City. The complete list of stations and cities which will earry the "Old Gold" program will be announced in a few da vs. Say You Saw It in The Tobacco World 53rd year 17 GENERAL CIGAR EARNINGS The General Cigar Company reports 1932 net in- ctmie of $'2,058,378, e.*»1. "TALLY-HO" DEAL The P. Lorillard Com])any is sj)onsoring a special deal on their ''Tally Ho" cigarettes, which is meeting with enthusiastic eo-operation of the dealers and being ^ery favorably received by the consumer. The deal consists of two packages of "Tally-IIo" cigarettes and one pocket lighter — value $1.30 — all for the siMM'ial price of A\) cents to the consumer. NEW SIZE "MURIEL" TO RETAIL AT bi According to reports, the 1*. Lorillard Company will i)lace on the market within the next ten days a new size of their famous "Muriel" cigar, under the front - mark "Senators," to retail at live cents each. This will prove a valuable addition to the "Muriel" line of sizes, which have enjoyed outstanding po|)ularity with the smoker of (piality cigars for many years, and should attract many new smokers to the brand. Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. i!^»lir\t!T7TtiOiOjZjigal] liAlifAill ^lAmZ FOR SALE lOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; Xo. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Tresses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE— No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD MANUFACTURING FIRM OF HAVANA QUALITY CKiARS will serve orders in any quantity to discounting dealers, at profitable prices. Satisfaction guaranteed. Address for particulars "Fair Dealing", Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco in«eKow and smootli tn character and impart a most palatable flavor FUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTliN. ABOMATIZEI. BOX FLAVOBS. PASTE SWEETENERS FRIES & BRO., 92 Reode Street. Ne^ York Jacob Oxmnn, rncoiimrated, 4:57 Walnut Street, who liled a bankruptcy lictition here recently, last weriggs" at the present time is packed only in 15-cent tins ane invited l(» ^it in the conferences of the Duys Committee so that tliey mav be of service in the betterment of the industry. "Resolutions were also passed and addressed to Max Jacobowitz, secretary of the National Association ,,t' Tobacco Distributors, urging their association mem- bers 'Mo command such a ])rice for cigarettes and to- baccos and that will yield a profit sufliciently large to enable them to pav commissions on such sales to then- salesmen. " At tlie present time most jobbers do not pav their salesmen for cigarette and tobacco sales. ■ Elections resulted in the following officers being chosen: Albert Freeman, of New York, president; L'- viii"'- Moss, of Trenton, first vice-president; Joe tree- man, of New York, sec(md vice-president, and Jack A. Martin, secretary and treasurer,^ , , , . xr The National Board convention will be held in New York next year. . , , . .^. * i« The Trenton branch entertained the visitmg dele- gntes at a l)anquet at (icneva hm. AMERICAN TOBACCO COMPANY DIVIDENDS Directors of the American Tobacco Com|)any de- clared the regular dividends on the common and com- mon B stocks last week, but took no action on e.xtra pavments. A year ago at this time the company voted "llonus payments" of $1 a share on both classes ot stock. . -, , A- A The regular quarterly dividends amounting to >^V2b each are payable March 1st to stockholders of rec- ord Fe))ruarv 10th. D. EMIL KLEIN EARNINGS D Emil Klein Comiiany, Incorporated, reports for 1932 net income of $24G,3;i4 after charges and taxes, iMiuivalent after dividends on 7 per cent, prel'erred Mock, to $2.07 a share on 1)5,540 no par shares ot com- mon stock, outstanding at the end of the year. This crmipares with $3(54,619 or $3.14 a share on 9<,t5<;.) eoin- mon shares in 193L RETAIL STORE PROBLEMS {Continued from page 14) interfered with by congested vehicular traffic and, therefore, that such a jiroblem dercentages of stores reporting on this l)oint from cities of different size show the scofie of interference. It exists in small as well as in large com- munities. Even subcenter shoi)])ing districts share in it proportionately. As the size of the city increases this interference also increases. (To be continued) VOLUIviE 53 E^:^ 1.IBRARY HECKITBb FEB lb 1933 LILLIAN RUSSELL >r^ \ 2 ^ for 5c U. S^BOND CIGARS CIGARS P. LORILLARD GO'S Cigars These brands formerly sold at 5c each . . . now reduced to fit today's purse . . . automatic machines offer A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AUTOMATIC AGE 2810 S. Michigan Avenue Chicago Illinois EstabliiheJ 1886 "BEST OF THE BEST 99 v.. "^--^^ : NEW C I R R K N C \ C I il A R S Manufactured br A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Keg West, Florida PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA., PA. After ^nothing all satisfies like a good cigar WOODEN BOXES Are the Only Natural Humidor for Cigars. Pack your cigars in wooden boxes and preserve their delicate aroma, mellowness and flavor right up to the time they are passed over the counter to the customer. Discriminating cigar smokers prefer to select their favorite brand from a wooden box and it's good business to cater to the dealer and con- sumer by packing your cigars in wooden boxes. XwHEN BUYING CIGARS I Remember thjf ►«eg*rdleft of Price I THE BEST CIGARS I ABE PAOLED IM V WOODEN BOXES Volume 53 THE TOBACCO WORLD Number 4 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, FEBRUARY 15, 1933 Foreign $3.50 CIGARETTES FURTHER REDUCED TO $5.50 HE second drastic price revision witiiin recent months was made on Satnrday by the Amer- ican Tol)acco Company in the fiiJ:ht ra^in^ l>e- tween manufacturers of so-called standard hrands and the ten-cent ^^rades. Tt carried wholesale prices down to $5.r)0 a thousand, a cut of fifty cents. This compares with the i)rice of ^6.^7) a thousand ob- taining ])efore the reductions were started. The retail price in this area was promptly fixed by the Great Atlantic and l^icilic Tea Company which posted a schedule of ten cents a pack or $1 a carton on *' Lucky Strike," "(^amel," '*01d Gold" and ''diester- field,"* bringing the standard brands into direct com- petition with the cheaper grades. Following American Tobacco's announcement the other members of the *'big four" followed suit. Other leading retailers are likely to post the same prices as the A. & P. * . .^ ^ , ^ The new price war follows closely on the heels or the initial deep cut of eighty-five cents a thousand to $() announced January 2 and was the second step lu the battle to regain the business which was won from the so-called standard l.'j-cent luandii last yeur, by the 10-cent l)rands. In addition to attempting to drive the 10-cent brands out of the volume market, it is understood the price war also was designed to recover some percent- age of the estimated 4(MM)0,(K)(MHK) cigarette business lost to smokers who are now rolling their own. In usually well-informed (piarters it was suggested that one or more of the remaining three ^'big four" companies might slash the price to a flat $.") a thou sand, but the announcement was made by the H. J. Reynolds Company that the wholesah* price ot '*C'amels" had Ix^en* reduced to ^:)J)i) to meet the Amer- ican Tobacco cut, and the suggestion was considered more in the light of a rumor. DRUG, INCORPORATED, TO CHANGE STOCK PAR Drug, Incorporated, has notified the Xi'W York Stock Exchange of a ])rop<)sal to change the par value of its capital stock from no-i»ar value, as at present, to $10 par value. The comi)any has outstanding Ji total of 3,501,499 shares of no-par stock which is carried on the books at a value of $8.'),4r,H,L>2S or the e«iuivalent ot about $25 a share. The change in ])ar value of course would call tor a write-down of such book ca])ital to $;i5,01 4,990 and the transfer of approximately $5(MKKM)(M) to surplus account. This freshly creati'd book sur])lus would i)er- mit the writing downof various items on the asset side, such as trade-marks, goobsolescence and Federal taxes, an increase of $514,155 )ver the previous year. xVfter paying $182,000 in divi- londs on the preferred stock, $1,937,368 in dividends on ihe common stock and transferring $2,791,523 from «^'neral reserve to surplus, and writing down good will, etc., from $4,4r)l,395 to $1, the surplus account as of December 31, 1932, amounted to $5,883,485. At the close of the year the company had total assets of $2o,- "80 128. ' John M. De Voe, ])resident, in his report to stock- jiolders, savs the net earnings for 1932, after preferred dividends, \vere equal to $7.64 ixir share on the com- mon stock outstanding, and that none of the earnings shown in the income acouiit were derived from the coni- paiiy's investment in its own common shares, the divi- dends accruing on the latter being credited against divi- dend payments in the earned surplus account. CIGARETTE TAX PASSES OKLAHOMA HOUSE A bill i)lacinir a three-cent per package tax on ciga- rettes was passed bv the Oklahoma House of Repre- sentatives on February St Ik The measure now goes to the State Senate, where Administration leaders may make an effort to increase the tax to 4V2 cents as orig- inallv proposed by Governor W. H. Murray. 53rd year THE TOBACCO WORLD February 15, 1933 GEORGE W. HILL DECLINES STOCK ALLOT- MENT NDER date of February 10, Georj^e W. Hill, president of the American Tobacco Company, announced in a letter to stockliolders of that company that he liad declined the allotment made to him of 13,440 shares of the company's B stock under the employees' stock-subscription plan, which has been fousrht through several courts in a stockhold- er's suit. The president stated that he had done so because of his belief that he could, in that way, more vigorously uphold the principle that employees w^ho do^ their jobs well and make money for the company will also make money for themselves. This action reduces the number of shares which have been allotted under the plan from 53,830 to 40,39<). In his letter, Mr. Hill reminded the stockholders that they adopted the plan two years ago on his rec- ommendation and that he was directed to make the idlotments and tix the prices of the stock. lie selected the 535 employees, including all the directors, who shared in the allotments, but said that none of the shares allotted has yet been delivered to the partici- pants. Mr. Hill defended the allotments to seventeen di- rectors on the ground that they devote all their time and efforts to the interests of the company, that none of them has any other business interest, imd that every director is an active employee and the head of one or more departments and that they are the most impor- tant and valuable of the employees. In that respect, he asserted, the board was constituted ditTerently from the boards of many other corporations. LORILLARD EARNINGS MAY SHOW INCREASE The Wall Street Journal says that when final earn- ings figures for VXV2 are compiled, it is indicated that P. Lorillard Comi)any will show net income of approxi- mately $5,000,000 equivalent to around $2.20 a share on 1,901^212 common shares after preferred dividend reer cent, bonds. GEORGE W. HELME COMPANY EARNINGS George AV. Helme Companv, snulY manufacturers, reports for 1932 net profit of $2,017,566 after charges and Federal taxes, equivalent, after 7 per cent, pre- ferred dividends, to $7.24 a share on 240,000 conmion shares, as compared with $2,147,690, or $7.78 a shan* in 1931. NEW PHILIP MORRIS CIGARETTE Philip Morris and Company, New York, manufac turers of the well-known **A[arlboro" cigarette, is mar- keting a new cigarette to retail at fifteen cents a pack- age of twenty, under the brand name of ** Philip Mor- ris". The new cigarette is known as an English blend. **OLD GOLD" RETURNS TO RADIO FTER a long absence from radio, ''Old Gold,*' manufactured by the P. Lorillard Company, returned to the Columbia network on Wednes- day, February 8, with a half-hour program of popular and delightful music by Fred Waring and his complete orchestra. The program will be featured each Wednesday evening from 10 to 10.30 P. M., Eastern Standard Time, over Columbia stations in the follow- ing cities: Akron, Albany, Atlanta, Bakersfield, Balti- more, Birmingham, Boston, Buffalo, Charlotte, Chat- tanooga, Chicago, Cinciiniati, Cleveland, Columlnis, Dallas, Denver, Detroit-Windsor, Fort Wayne, Fort Worth, Fresno, Hartford, Houston, Indianapolis, Kan- sas City, Little Rock, Los Angeles, Louisville, Mem- phis, Miami, Minneapolis, Mobile, New Orleans, New York City, Oklahoma City, Orlando, Philadelphia, Pittsburgh, Portland, Providence, Rochester, Sacra- mento, Salt Lake City, San Antonio Santa Barbara, San Diego, San Francisco, Seattle, Stockton, St. Louis, Spokane, Syracuse, Tacoma, Tampa, Toledo, Topeka, Washington. JANUARY TOBACCO SALES IN KENTUCKY Kentucky warehouses sold 170,142,312 pounds of tobacco of all types during January for $18,278,400, or nn average of *$10.74 per hundred pounds, Eugene Flowers, Commissioner of Agriculture, reported to- During the same month of 1932 the warehouses sold 20r),689,591 pounds of tobacco of all types for $15,897,475.83, or an average of $7.73 per hundred pounds. The general average for January sales fell otl from December, when 78,029,705 pounds of leaf of all types were sold for $10,142,985, or an average of $12.99 per hundred. The sales for Januarv included 143,162,612 jiounds of hurley for $17,140,298, or an average of $11.97 per hundred pounds. In January of 1932, 170,701,400 l)ounds of burlev were sold for $14,616,321, or an aver- age of $8.56. During Deceml)er 73,631,805 pounds of hurlev brought $9,949,424, an average of $13.51. UNITED STOCK DROPPED FROM EXCHANGE Common and preferred stocks of the Ignited Cigar Stores Company of America were removed from trad- ing on the New' York Stock Exchange at the opening of business on February 9th. The removal results auto- matically l>ecause of discontinuance, as of the close of business on February 8th, of the company's transfer aneen president of the Twenty first Ward Civic Association and of the Twenty first Ward Memorial Monument Association, w^hich erected one of the first World VJ^ixr memorials in this citv. He was a member of Palestine Lodge, F. and A. M.,*of Falls of Schuylkill and of Elks Lodge No. 2. Trade Notes PROMOTING "MEDALIST" IN PHILADELPHIA S. Silverberg, i)romotional man for E. A. Kline & Company, ''Medalist" manufacturer, New York City, has been in Philadeli)hia during the past two weeks doing promotional work among consumers on ** Medal- ist" cigars with splendid results. Mr. Silverberg has also been working in the retail trade promoting the ''Medalist" Juniors, in the new packing retailing at fifty cents for a ])ackage of ten of the Juniors. Yahn & AIcDonnell have been ai)pointed exclusive distrib- utors of the "Medalist" brand for this territory, effec- tive Januarv 1st. Mr. Daniels, representing Val M. Antuono's, Tampa, Fla., "C. H. S." brand was in town last week visiting the trade in the interest of this five-cent Ha- vana brand. Abe ^'aro, the genial ambassador of the "Optimo" factory, was in town last week visiting Yahn & Mc- Donnell, local distributors of the l)rand. "Optimo" sales continue to maintain their steady volume of sales here. Yahn & ^IcDonnell report an excellent sale on their private brand, "Mint Perfecto," which has just been reduced to retail at five cents eacli, $5 per hundred. This brand formerly retailed at four for twenty-five cents, and the recent reduction in price has etTected i\u unexpected increase in sales. Benjamin Lumley, representing F. W. Sommer- feld Cigar Company, Miami, and Garcia y Vega, Tampa, has been visiting his factories in the South during the past two weeks and is expected to return to l*hiladelphia this week. He advises his friends in Philadelphia that he is having a wonderful time in Florida and expects a big year ahead for his brands. E. Rosenthal is s})ending some time in Philadel- phia doing promotional work on the Cfonzales & San- chez cigar, through Yahn & McDonnell, local distrib- utors of the brand, with splendid results. Several new popular sizes will Ix? added to the line in a short time, which are expected to have a stimulating effect on sales of this high-grade brand. February 15, 1933 Say You Saw It in The Tobacco World 53rd year Mm ness an a K^naracter 's toas 92 omployoos to the operaliuir force in their Phihidelpliia ])hnit. llarrv A. Tint is featurinir a wonderful display of line pii)es in his stand in the Pennsylvania Build- ini--, and reports a wonderful pipe business as a result. John Wagner c^' Sons announce that they have .inst a.dded live popular sizes to their own controlled ''Waj?- ner" brand of fine dinars, and calls for this ])rand are showinir a substantial increase among consumers. Godfrey S. M. Tint, son of Harry A. Tint, who oi)erates cigar stands in the Burlington Arcade and the Pennsylvania Building, returned last week from his honeymoon and was tendered a welcome-home ban- quet at the Manufacturers Club. I. B. White, manager of the cigar department of John Wagner & Sons, Dock Street distributors, reports a wonderful business on their '*Monticello" smoking mixture and ''Monticello" cigarettes, both controlled brands of the Wagner house. Bill AVood, of the Wood Drug Company, has just returned from a sojourn in the Southland where he had a splendid time enjoying the balmy atmosphere and sparkling waters for which that section of tliis country is so famous. Julius Blum, of the ''Natural Bloom'' factory, 1300 First Avenue, New York City, was in town on Monday visiting Yahn & McDonnell, local distributors of the brand. "Natural Bloom" has a good distribu- tion in this territory and a goodly number of steady customers who are partial to that ])rand. "Briggs," the new high-grade smoking tobacco, manufactured ])y the P. LoriUard Company, and dis- tributed by Yahn & McDonnell, continues to gain in popularity and is being featured by more and more re- tailers daily. This brand retails at 15 cents straight, and the estaV)lished i)rice is being rigidly maintained by retailers throughout the city who are interested in stocking merchandise in which there is a legitimate profit. The new ''Bayuk Phillies," which was reduced on January first toretail at five cents, is continuing to gain in popuhirity throughout the country among those consumers who aj)preciate quality in a cigar, and orders are continuing to pour into factory headrpiarters at Xintli Street and Columbia Avenue, in such volume tliat the huge factory has l)een kept running to al)so- lute capacity ever since news of the reduction in price of the "Phillies" was broadcast to retailers and con- sumers throughout the country. The outlook for con- tinued increasing popularity of Bayuk brands is con- sidered to be highly favorable. PLANTING MORE TOBACCO SEED BEDS URGED FOR FIGHTING BLUE MOLD LANTING more seed-beds is the simplest way for a tobacco grower to insure himself against disastrous h)sses from downy mildew or blue mold, savs the T'nited States I)e]iartnient of Agriculture. This disease was first noticed in the I'uited States in 1!)21, did not appear again until VXU, and in 1!>32 did widesi)read damage, esi)ecially in North Carolina,- S(nith Carolina, and i)arts of (icorgia. The mildew at- tacks i)lants in the seed-bed. It is c(mmion in Aus- tralia. The department says the mildew ])roblem i)ro1)- al)ly is here to stay, and' that destructive outbreaks mav occur whenever the weather is favorable. " The mildew first appears as yellow blotches on tlie leaves with a cottony growth on the undersides of the leaver, usually white or pale violet in coloi'. In a few days the leaves have stantial increase in orders which he has been turning in to John Wagner & Sons, local distributors of the l)rand, is evidence that his many customers heart ilv agree with his oj)ini(»n. February 15, 1933 THE TOBACCO WORLD 53rd year iC m woi kin^ an dS mo kiiW overtime kence a A/ii/c/cr C^/^/r/Ze o When I work hard, I usually smoke more; and when I smoke more, I usually work harder— that's why I want a cigarette that's milder and tastes better— that's why I smoke Chesterfields. • "; mm ^^'^''ttnRTuio / e 1 9 U , Liggett & Myers Tobacco Co. 10 53rd year THE TOBACCO WORLD February 15, 1933 News From Congress _ -AND Fe D E R A L Departments EGISLATIOX which would prevent interstate commerce in tobacco products manufactured in ])hints in wliich persons were em])loyed more than five davs a week or six hours a dav has been favorably reported to the House of Kepresenta- tives by the committee on lal)or. The ])ill would enforce the adoption of the five- day week in all factories, manufacturinu: establish- ments, workshops, mines, (piarrics, mills and canneries by prohibitiuiT tlie movement in interstate or foreij^n commerce of any article or commodity })roduced in any ])lant, in the United States or abroad, in which the six-hour day and tive-day week were not observed. Sentiment of the industrial world is sharply di- %'ided on the merits of the shorter week, but depres- sion conditions are believed to have dulled the opposi- tion of those who would most strenuously have fought the thirty-hour week in more normal times. Labor, generally, is in favor of the ])lan, as are a num])er of prominent mainifacturers who see in it a widening of the employment opportunities. On the other hand, many manufacturers oj)pose a shortening of the jires- ent hours of labor by law, on the ground that individ- ual lines of industry may be subject to special condi- tions which make a six-hour day undesirable. A third point of view, that hours of la))or should be lengthened, was laid before the Senate Judiciary Committee during hearings on similar legislation by Charles B. Bradbury, a merchant of Winthrop, Mass. ** Longer hours will increase j)roducti(ni and re- duce cost, thus permitting jK'ople to obtain goods cheajjer and to consume more," Mr. Bradbury told the committee. *'If we can i)roduce goods chea])er, we can com- pete with foreign labor aiul can export mure gooe engaged in. From our IVashington Bureau 62?Albee Building The report also recommends that the Post Office Department discontinue the practice of soliciting i)ar- cel i)ost business and increase its rates for packages to a point where they will cover the entire cost of the service, and that the Government also discontinue the practice of selling stami)ed envelopes with printed return cards. "The evidence in general," the committee declared in its report, "indicates that the o])erations of the Fed- eral Government in the field of i)rivate enter])rise has reached a magnitude and diversity which threatens to reduce ])rivate initiative, curtail tlu> oi)portunities and infringe upon the earning ])owers of tax-paying under- takings while steadily increasing the levies upon them." Cj3 Cp CJ3 Failure of tlie Department of Justice to advance any recommendations for relaxation of the antitrust laws during the depression i)erio(l lies not in the de- sire of officials to continue the present strict statutes in force but in the fact that no modification has yet been ])ro]>osed which would not involve the (Jovern- ment in the problem of price fixing, according to Attor- ney General William I). Mitchell. "Under any legislation conditionally removing the l»an on combinations now prohibited by law," Mr. Mitciiell asserted in discussing the agitation for relax- ation of the present statutes, "the determiiuition of the (juestion whether the combination resulted in ex- t<»rtion or oppression on the consuming public would have to l)e left to some agency like the Federal Trade Commission, which could approve the combiiiation in advance ancl withdraw its approval at any time if it were found to result in unreasonable exactions from the public. "Whatever method might b«' adopted," he contin- ued, "a departure from the competitive system would reipiire us to face the necessity for further ])rojecting the Government into control aiul supervision of busi ness, and as a ]>ermanent legislative ])olicy it seems uidikely that the people of this country are in a frame of mind to be satisfied with any plan which would allnw sonu' commission, board or bureau at Washing- ton to be ])assing on the reasonableness of prices tf> be paid throughout the land for necessary or useful (ommodities. "In this lies the inherent difficidty. All the dis eussions l)y institutes, chambers of commerce, bar as sociations, professors and economists have so far failed to bring forth a solution in the form of concrete leg- islative proposals for fundamental changes in the anti- trust laws meeting general acceptance." {Continued on Page 17) February 15, 1933 Say You Saw It in The Tobacco World 53rd year 11 MR. WILLIAMS WARNS ON INCREASED TAXES . CLAY WILLIAMS, president of the K. J. Reynolds Tobacco Company, presented to the joint finance committee of the Legislature a very frank, thoughtful and fair opinion of the various tax'bills now l)efore that body in so far as they would affect the tobacco industry in this State. He stated that on next March L5, his company will pay the State $2,180,000 in income tax, a laiger amount than was paid last vear. The company's taxal)le in- come for 1932 is larger than for IJKH, he explained. Mr. Williams did not speak for the other tobacco companies as to 11)32. But cited figures to show that the tobacco industry paid in 1931 57.3 per cent, of the total income tax paid ])y all corporations, 45.5 per cent. of the total income tax paid both l)y corporations and individuals and 50.5 i)er cent, of the combined corpora- tion and franchise taxes ])aid by cor])orations. The budget bill proposes laws that would increase the income tax of all cori)orations from 5 M. per cent, to 6 per cent, and their franchise tax from $L2.) to $L75 on each $1000 of capital stock, l^-esident Wd- liams objected to increasing the franchise tax on the market value of capital stock instead of on the original investment it represents. To select the market value of the stock would be to slap the tobacco industry in the face, he insisted. His point here is that the mar- ket value of other species of st(»cks is very l(»w— rail- road stock, for instance. The market value of tobacco stock is verv high comparatively, lie insisted that the ifranchise tax should be based on monev invested in stock, since the income tax takes care of the earnings feature of the stock. Tlu' Tlavden Clement bill, which would levy a one- half of one per cent, tax on production of all commodi- ties elicited objection from Mr. Williams, who said that such a tax w(iuld send every article manufactured in the State out into interstate ccmimerce with a very definite handicap. Discussing the Hinsdale bill wlucii W(Mild place a tax of three cents on everv package o I ei'Mrettes, Mr. Williams made the strong point that <*m'h a tax would be a bad example for North Carolina to set for other states. Sixty-one per cent, of the ciga- rettes made in the nation are made in North ( arolina. Fourteen states tax cigarettes and in those states con- sumption has fallen olT sharply. The consumption of citrarettes rose as high as 119,(H)0,()00,000: it dropped to 112,000,000,000, and is now 105,000,000,000. Obvi- ously increased taxes on cigarette consumption reduces the number used. President Williams reminded the joint finance e(»mmittee that there is pending in ^'on^'resi^/V'^ ^ which wouhl return to the states (Uie-sixth of the ted- eral revt-nue derived from tobacco on ccmdition that thev refrain fnmi imposing taxes on the industry. He commen(hHl the bill but was far from c(,nlidcnt that it would b*' enacted. Mr Williams gave some attention to the relation- ship of the tobacco industry to the State. North Caro- lina produces 38 per cent, of all the tobacco grown in the countrv and manufactures (11 ].er cent ot all the cigarettes.' The State's taxation policy has always been favorable to the industry. Mr. Williams insists he has HO n<.ti(m of leaving the State, but is not sure that the .stockholders, whc» own tl.. H. J. Heynolds tobacco Companv, would vote to c(Mitinue operations m the State if 'it should raise tax rates .o high tha it would he cheaper to operate in other s\aiQ^.-^n nistnu SaJrm Journal. TECHNOLOGICAL UNEMPLOYMENT IN THE CIGAR AND CIGARETTE INDUSTRIES HF introduction of machines into the cigar in- dustry has meant loss of job, i)rotracted un- emi)loyment, or greatly reduced earnings to many workers, according to a recent study made bv the AVomen's Bureau of the United States Department of Labor. This survey, covering some twenty-five thousand women and about 100 cigar tac- tories*, shows how workers have lost ground with im- I)roved technological methods in one specific industry. The study also shows the et^fects of greatly improved machinerV in the cigarette industry. The industries themselves are forging ahead, pro- ducing 124 billion cigaretes and six and a quarter bd- lion ("igars in 1!)30. Trjicing this growth by census fii,nires during the ten-vear period from 1919 to 1929, the liuUetin makes clear that while the total value of the products added bv manufacture in the two indus- tries combined increased l)v almost 70 per cent., wages paid decreased bv 23 per cent. That machines are definitely taking the place of men and women workers in cigar* manufacture is further indicated by the fact that the increase in horsepower is tremendous and the average numhi'r of wage-earners is declining greatly. Cigarette making has been from the start a ma- chine process and its storv has been one of continuously improving machine production. But twenty years or more ago cigars were made almost entirely by hand, the survev states. Competition for popularity with the public against the cheaper, machine-made cigarettes necessitated the introduction of machines into cigar- making. In 1!)18 an automatic cigar-making machine was invented which with four operators, was able to complete the whole cigar-making process. Three thou- sands such machines were in operation by l.)2J, and their use has revolutionized the entire industry, (heater efficieiicv, cheaper labor costs, and increased production have'come with them. Nevertheless, hand production still prevailed in many of the lactones vis- ited The survev found that the consensus ot opinion of emplovers seems to be that under average condi- tions the'machine cuts labor costs about one-halt and ,l(»ubles production with the same space and number ot i'Uiplovees. . ^ • e With this change of jobs in cigar-makmg from a ^killed hand process to machine operation, though both men and women were being displaced, men were los- i,i.^ out proportionately more than women in the m- (hrstrv When given an opportunity to make cigars hv" machine men were less willing than women to ac- cept less skilled and lower i)aid jobs. Census figures .how that women sutfered only 24 per cent, reduction in cic'ar and tobacco plants as compared with about 40 ]m- cent, reduction for the men during the ten-year period from 1920 to 1930. In one plant visited by the Women's Bureau as many as SO per cent, ot the work- ..r< before the introduction of machines were men, but with the use of machines only 10 per cent, were men But while it was true that some women hand work- ers wen' given a chance at the machines, to many oth- ers the merging of plants and introduction o^ machm^ ,.,^ meant dismissal and unemployment. I" enie>.vs were held with 1150 women who had lost out in tins wMV One-eighth of these women had ])een completely nemploved since their dismissal, and of the remain- Wv onlv'a little over one-tenth had ]>een employed lor the Whole time. The older women had the hardest time in fiiKling new work. {Continued on page 13) 12 53rd year THE TOBACCO WORLD February 15, 1933 RETAIL STORE PROBLEMS So many persons are unaware of the many aids to l)usin€ss which hare been carefully prepared by the United States Government^ and so many of those icho are aware of these facilities fail to take advantage of them, that we are publishing the following studies as an aid to the retailer. — Editor. {This Studif prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) VEHICULAR TRAFFIC CONGESTION AND RETAIL BUSINESS (Continued from previous Issue) Scope of Interference But while this is ovidont it is intcrostina: to note that the perceiitn,a:e of iiiteifereneo does not increase in direct proiiortion to the size of the city. In other words, the amount of street trailic which causes con- gestion and results in Imsiness int erf e mice is not in direct proportion to tlie size of the retail area. There is, of course, a limit to tlie amcunit of tiaftic tliat streets, regardless of location, can accommodate. Street widths do not increase as the Bim of the city increases, altliouirh the amount of street traffic does. Furthermore, in some instances retail ee of interference. Any element, of course, niiirht hamper business even to m \ery appreciable extent, and while the element itself was wholly discernible, the degree of that interference might be an entirely unknown quan- tity. The survey undertook to determine degree ol inter- ference, basing it u]>on the percentage estimates made l)y the merchants to whom (juestionnaires were sent. The numl)er rejjorting on this point, however, was somewhat small. In view of this, and also the fact that the replies represented rough estimates only, it should be stated that these replies indicate only the trend of interference. Merchants in cities in (J roup I who re- ported percentages stated that traffic interference was responsible for a >ales decline ranging between o and 50 per cent. Tn addition, in two-thirds of the cities in this group, one or more stores stated that the interfer- ence was *' considerable." St«»i cs representing all eight selected lines of merchandise, with the <'\ception of jewelrv, are included among those reporting an appre- ciable amount of interference. It was also noted that subcenter as well as downtown stores expressed vary- ing degrees of interference. While degree of interference reported by stores in Group II was substantially the same as that reported by stores in Group I, one store in this group made refer- ence to increased interference during the summer Mionths when there was greater resort patronage.^ Sub- center stores reported interference in ])roi)ortionate amounts. In this group, as well as in Grou])s III and IV, but four lines of merchandise (dry goculs, hard- ware, shoes, and clothing) were sent (piestionnaires, and all rejiorted some amount of interference. In a city fairly well up in (iroup III, a men's clothing store with a capitalization of less than j};ir)(),(MH) reported that in- terference from vehiculai- trailic congestion was respon- sible for a decline of $1(),(»«M) in sales during one year. In some stores in (iroup III the amount was estimated to l»e api)reeiable only during certain unusually busy periods, such as the holiday season; in some stores in (Jroup IV the amount was considered appreciable only on Saturday evenings, when those stores were open. Taking the median ])ercentage, which seems to be a nearer ap])roach to the actiud condition, with a small number of replies of wide I'ange it was fouiul that in (Jroup I trailic interference was iM) per cent.; in (Jroup n, :2<> per cent.; in Group III, 'JO iier cent.; and in Group IV, 10 per cent. Similar percentages in subcenter dis- tricts amounted to 20 per cent, in (Jroup I and 10 per cent, in Group II. It is not to be inferred, liowever, that everv l)usiness in those groups of cities is interfered with to the degrees mentioned. Total business has jirobably increased since the advent of the automobile. But, where congestion occurs and introught down from 1 per cent, to 20 per cent, below that which would have been transacted with the automobile as a *'busi- ness brinirer" minus the factor of congestion. Causes of Congestion in Retail Areas With interference resulting from congested vehicu- lar traffic as a definite problem and with that j>roblem existing in communities of various sizes in all parts of the country, the next step is to look into the causes of such a condition. Broadly speaking, causes of vehicular traffic c(m- gestion are perhaps as many as there are store loca- tions. Some loom up large and (it hers are less discern- ible. In reply to the question covering the causes of this condition, many diverse answers were received. (Jn the basis of these answers causes of congestion have been classified under the following four headings: (1) <'onditions related to tralVic regulations; (2) those clearly a result of lack of j^arking facilities; (IJ) those resulting from narrow streets: and (4) those in which :he street car is concerned. These four factors which have been reported a> causing vehicidar traflic conges- tion may or may not l)e the chief factors (Muicerned at all locations. They merely have been reported as the most prominent factors producing coi«gestion, and only a true analysis of each location l)y traflic specialists should be accepted as tin- actual condition. These re- j.orted factors, however, ar«' significant in -o far as one or more of them undoubtedly is fundamental in every instance where vehicular traffic congestion occurs. (Continued on Page 14) February 15, 1933 Say You Saiv it in The Tobacco World 53rd vear 13 BETTER CONTAINERS FOR BETTER CIGARS Today the cigar manufacturers of the country are offering their customers a better product, for the money expended, than has been possible for many years. The appeal of these exceptional values can be greatly in- creased by good packaging, for good packaging is essential to all successful merchandising. The new improved AUTOKR AFT cigar box is available to all cigar manufacturers. It will not only enhance the worth of a brand in the eyes of the consumer, but at the same time it presents opportunities for economies to the cigar manufacturer. Phi la., Pa. Hanover, Pa. Cincinnati, Ohio York, Pa, AUTOKRAFT BOX CORPORATION Chicago, in. LIMA Ohio Detroit, Mich. A Natioi\Wide Service Wheeling, W. Va. TECHNOLOGICAL UNEMPLOYMENT (Continued from Page 11) Those women who did tind jol)s rei>orted reduced earuiu«rs. Of the women wlio report(vl their earuinu:^ before the se]>aration aud ou the iirst suliseciueut job, tlie nu'dium eaiuiuir< of thosi* who found wnrk airain in eiirar factories had (h'crcasod almost 20 j)er cent, from their m<'diau Ix-fore dismissal. Similarly, of those who found work in otiier iiidustries, median enm inirs showed an almost .'JO per cent, decline. Older women were found to be losin.i; ground to the younger ^'irls. A< evidence of the cij.rar industry's decided teiulency to drop the older workers is tin* fact that ()() per cent, nf the displaced women were thirty >ears of a^*' .') per cent, of the women emi)loyed in tiie ciirar factories at the time of the survey had reached thirty years. A further comparison i>l' tlie two .moup.> ot' women showed that the most expeii«iiced and skilled workers sulTered the most dnrinK the transition from hand to machine work. Half of the women employed in the ciiCar factories ;it th<' time of the survey had liatl lesH than live years ol" experience in the industry, while ot those dismissed only a fourth had worked less than live years in the trade. Wa^e li^ures troni the plants visited showeil that the vast nuijority of t'i.trai makers, both hand and ma- chine, w«>re on piecework. Median earninirs of machine makers were somewhat hiirher than that of the hand makers. It was explained that this was due Iarii:ely to the steadv ;r,.plicati(»n ne<'es>ary in machine work where ^^irls must keep up with the electrically-driven ecpiipment as long as the power is on, while hand makers more frequently work on a part-time basis. TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES Y. Y. JESSE A. BLOCK, Wheeling. W. Va CUARLES J. EISENLOHR, Philadelphia, Pa 11 LILS IJCHTKNSTEIN. New York, N. Y. WILLIAM BEST. New York, N. Y. ..... MAI. GE(JRGE W. HILL, New York, N. nEOR(iE U. UUMMELL, New York, N. H H. SHELTON, Washington, D. C WII.I.IAM T. REED. Richmond, Va HARVEY L. HIRST, Philadelphia, Pa ASA LEMLEIN. New York, NY ( IIAKLES DUSHKIND. New York. N. \ Headquarters. 341 Madison Ayc., •••»•••••#••»*••• .Chai Presidenl Ex-President Vice-Preaident rman Executive Committee Vice-President Vice-President ' ' ' Vice- President '"""'"".'. Vice- President /. 1 1 m ] ] * . . i Vice-President Treasurer .Counsei and Managing Director New York City ALLIED TOBACCO LEAGUE OF AMERICA \V I) SPALDING, rincinnati. Ohio rUAS. B WITTROCK. Cincinnati, Ohio f,FO S. ENGEL. Covington, Ky ...... \VM S GOLOENBrRG, Cincinnati, Ohio .President .Vice-President Treasurer Secretary ASSOCIATED CIGAR MFRS. \ND LEAF TOBACCO DEALERS lOHN H DUYS. New York City . MILTON KANCK. Lancaster, Pa. I) KMIL KLEIN, New York City I EE SAMUELS, New York City . President , . . First Vice- President Second Vice-President . . , Secretary -Treasurer NXTIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS !\(-K A. MARTIN. Newark. N. J. A I HERT FREEMAN. New York, N. \ IKVKV M. MOSS. Trenton. N. J. .... ■■•••-•■•- A HE BROWN. 180 Grumman Ave.. Newark, N. J. President First Vice-President ...Second Vice-President Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN SAMl'EL WASSERMAN .President ...Vice-President THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS C. A, JUST, St. Louis, Mo ■ E. ASBURY DAVIS. Baltimore. Md • E VV HARRIS. Indianapolis, Ind JONATHAN VIPOND. Scranton, Pa. GEO. B. SCRAMBLING. Cleveland, Ohio ^. vV MAX JACOBOWITZ. M Montgomery St., Jersey City. N. J. Pre!sident ..Vice-President , . .Vice-President ...Vice-President Treasurer Secretary 14 53rd vear THE TOBACCO WORLD February 15, 1933 RETAIL STORE PROBLEMS {Continued from page 1^) Faulty Traffic Regulations Most stores reporlod the cause ot* veliicular-lrallic eoiige?>tiou to be related to trallic re,i»:uiatioiis. Various forms of trailk- reiculatiou liavc i>erhaps aided in the solution of the i)rohieni more than anythiiiij: else, but there is still much to be done. i*rol»lems incident to trat!ic regulations, as a cause, are said to be the result of the following: I'neniorced regulations, unnecessary regulations, mistitled regulations, and in^uihcienl regu- lations. In the downtown districts of the (iroup 1 cities, where (51 per cent, of the stores rei)orted interference as a result of vehicular trallic congestion, "Jo.i) per cent, of those stores statetl that this congestion was a result of one or more of the above faults in regulation of trallic. Such i)oints as "n iolation of city parking laws,'' "laxity in enforcing traftic regulations," "too few traf- tic i)oli*cemen," and similar conunents relating to unen- forced regulations were made. In no instance was the thought of unnecessary regulations cxpri'ssed. The mislitted regulations reported were chielly "one-way trallic," "unnecessarily prolonged jtarking privilege," "block trallic control instead of central conH'ol," and "left-hand turns." Those jKunts which have been placed under insutlicient regulations include "inability 10 stop in front of the store for the purpose of dis- charging passengers" (possi)»le (»f adjustment by a cleared entrance way regulation), "heavy truck traf- fic," "slow traftic," and ^' lack of through streets," all of vviiich are remedial by regulations. "Needless" iraftic, including "idle driving," "cruising taxis," and "the collecting of rublush and other refuse that could ue done at night," were reported ljy a considerable number of merchants. Some of tliese points may, in some instances, be placed under one of the other three causes of "lack of parking facilities," "street cars," and "narrtjw streets." Tins is perhaps a point of view. However, these points are in the remedial by regulation class and for that reason were piuced under iusufticieiit regulations. In the subcenter shopping districts of the Group 1 cities, where 3li.!> per cent, of tlie >l per cent, of the reporting stores cred- ited the cause of this interference to traftic regulations. The various faulty traftic regulations reported l)y these stores were practically identical with those reported by the downtown >tores in the same group. Of the ');;.(; jmm eent. of the stores iu the (Jroup II cities that reported inti'rfiMM'iice, '24.7 per cent, of tliese stores reijorted tlie cause ni that interference as di- rectly traceable to traftic iegulation>. In this grouj) of cities, the unenforced regulations n'p(Mted were practi- cally the same as tho-e reported in (iroup 1, but less in nunil)er. L'nnecessary regulaticjiis were \uA mentionetl; mislitted regulations were limit<'d to the "no-i)arking" regulations; and insufticieiit regulati(»ns took the form of "idle driving," "not sufticieiit ein^^ streets to al)Sorb vehicular traftie," "n<»t enough direct lines «»f traftic," and ".-low-moving commercial trucks which slow down traffic." Subcenter shopping district stores in this group, where th<*re was a lb.(i ])ei- cent, traftic- interfer- ence and a !:'»..". per cent, faulty traftic regulation cause, reporte(l faults in traftic regulation to be of the same type .IS those reported by the downtown expressed by merchants had a somewhat dilTerent meaning in the variark- ing space from the store made a point of in connection wiUi this lack. F«»r stores in the (inrnp II cities, lack (»f jiarking facilities wa> a cause of congestion when they were n<»t within an area of convenience to the >tore. Stores in the Grimp III cities referred to this lack with a slightly dilTerent interpretation. A con- venient area to the store was narrowed by this group to the "immediate vicinity of tlie store." Stores in tiie (iroup IV cities, in referring to this cause, felt a lack of such facilities when their customers could not park (Continued on Page 18) Februarv 15, 1933 THE TOBACCO WORLD 53rd year 15 BOOM AHEAD FOR MAGIC THEATRE IS VIEW OF LEADING MAGICIANS KOP'KSSIONAL magicians see a big boom aliead for magic and the magic theatre as a direct result of the present cigarette adver- tising campaign. They feel that the new ad- vertising will ])ring magic back as a headliner m the show ])usiness. This ])ecame known last week as the result ot a check-up on opinion in the profession. While the corridors of magic hummed with the news of the new ''magic cigarette ads," and ])rotests were heard in some directions, the consensus of opin- ion was that a new fad for magic loomed up ahead. Leading magicians, such as Pablo, the Si)anish sleight-of-hand wizard; .losej)!! Dunninger, "The Mas- ter Mind of Modern Mvstery"; Paul (^arletcm, " 1 he lliiu Who Mvstified the Mika(h>"; Luis Zmgone, ta- vorite ])rivat*e entertainer of the "400"; and Allan Bhaw, famed coin manii)nlator, all look to see revived interest in the form of entertainment in which they are most interested, as a result of the current cigarette adveitisements. Jose])h Dunninger is reputed to be the most re- marka])le mind reader of our generation. Kno\yn as the highest priced magician, Dunninger has an inter- national reputation. He has appeared before the Prince of Wales and three Presidents ot the I niteil States. In talking about the new "Camel" advertising campaign he said: . , • ., , ''The descriptions of famous tricks in the recent cigarette advertisements pnmiise to recreate for the modern ])ublic the ancient charm of magic shows I commend this campaign as I believe it will introduce an even wider public to the fascinations ot this torm <»f entertainment.** , . , i Also tvpical of the expressions being heard among magicians 'is the comment of Pablo, the Spanish magi- cian who works in pantomime. His rujarHtc illusions, incidentallv, are famous. He says: ^ "1 endorse anv activity, such as the current ciga- rette advertising cam])aigu, whicli draws t)ublic atten- tion to magic. It will be a real benefit to all classes who are interested in magit — ]>rofessional, amateurs, and makers of magic apparatus." Paul Carlton, "The Man Who Mystihed the Mi kado " is credited with having started more magicians in bu'siness than anv other man. He has followed the "magic ads" of the cigarette company with keen in- terest. "The ailvertising based on magic now appearing in the m'wspapers describes some of the most inter- esting ami curious tricks, illusions and deceptions ot tiie protVssional stage. This campaign has my hearty approval and I look forward to seeing the creation ot a new public for seeing mairic ])ertormed. Luis Zingone, favorite entertainer ot society, in in-ivate shows, and at such places as the Atlantic Beach Club the Palm Beach Bath and Tennis ( bib and \ ilia Valla, joins with the majority of his ])rother magicians in giving his approval to the ''Camel" advertising. *'rm glad to see that public interest m magic l,as I>een stirred up by the cigarette advertising now running. 1 believe we're eing made in the advertising, particularly among the non-protes- sionals. . . . . , However, Allan Shaw, the magician who does un- believable tricks with silver dollars— a man who tor ANOTHER CIGARETTE CUT RUMORED EP0RT8 of a new^ cut in wholesale cigarette prices by the four leading manufacturers broke out anew last week, in New York, and went further than previous reports by stating that the reduction would be to $5 a thousand. On January 1, the manufacturers reduced the wholesale price from ^GM to $() a thousand, and in mid- January, coinciding with weakness in tobacco company stocks traded in local security markets, it was rumored that an addi- tional price cut to $5.50 a thousand w^as contemplated. Xo official comment on the reports has been forthcom- ing from the manufacturers. According to news comment yesterday, the manu- facturers will, within the next few months, post two reductions of 50 cents each, l)ringing the retail price of leading brands to 10 cents for packets of twenty ciga- rettes. The cut would be made to recapture business lost to brands now^ selling for 10 cents a packet, and which supply 20 per cent, of the total cigarette demand, according to estimates. Statistics on 1932 cigarette production, by states, reveal the rise in output of the 10-cent brands. Ken- tucky, which reported a production of 3,800,000,000 cigarettes in 1931, increased outinit to 11,000,000,000 cigarettes last vear, it being estimated that 10-cent brands accounted for 9,400,000,000 of the 1932 total. In 1932, 57,0O(),000,000 cigarettes were made in North Carolina against 71,000,000,000 in 1931, a drop of 14,- 000,000,000 or 19.7 per cent. Between 60 and 70 per cent, of two of the four leading brands, now retailing at two packages for 25 cents, and 35 per cent, of one of the other two brands, are produced in North Caro- lina In New Jersev, revenue figures for 1932 show production of 3,700,000,000 cigarettes, or about 1,000,- 000,000 less than in 1931. Total cigarette production in the United States last year was 1 03,591, 4o9,000 ciga- rettes, or 8.7 per cent, less than the 113,461,120,000 cigarettes produced in 1931. DRUG, INCORPORATED, DIVIDEND Drug, Incorporated, cut the quarterly dividend rate from $1 to 75 cents a share on February 1st. Offi- cials of the companv said that while the reduction was tlictated bv a desire to follow conservative financial policies, there would be no curtailment in its important ex|)eiiditures for national advertising during 1933 and tiiat in the case of some of its products appropriations would even ))e increased. twentv years has entertained audiences all over the world, concurs with the prevailing opinion. He shares the view held by the majority of leading magicians, say- "I endorse and commend any publicity or adver- tising which helps revive public interest in magic! Thaumaturgv is one form of entertainment which taikes your mind olY your troubles— and how we need it these days!" o - i If the opinions of the leading professionals are ecrrect, magic is due for a strong comeback as a re- sult of the new cigarette advertising. Surveys con- ducted independently by the Keynolds Tobacco Com< nanv show an extraordinary stirring ot public inter- est in magic as the consequence of their advertisements. With schools collecting tear sheets of the advertise- ments, and hundreds of letters coming into the com- nanv's offices dailv discussing the subject, ot stage niagic, it appears that the ])rofessional magicians lace a bright future. 16 53rd year THE TOBACCO WORLD Febniarv 15, 1933 WHY STATES SHOULD NOT DUPLICATE FED- ERAL TAX ON TOBACCO RANKLTN S. EDMONDS, president of the Na- Natioiial Tax Association, addressing the first session of the Interstate Conference of Legis- hitors meeting in AVashington on Febrnary 3d nnder the auspices of the American Legishitors' Asso- ciation, paid particular attention to cigarette taxation as ilhistratiuir the possi])ility of extending to otlier tiekls of taxation the rebating device now used by tlic Federal Government in comiection with inheritance taxes. Mr. Edmonds, who served as a member of the Gen- eral Assembly of Pennsylvania from 1921 to 1027 and as Chairman of the Pennsvlvania Tax Commission (Legislative) from 192-1 to 1927, pointed out that under the terms of the Doughton Resolution, now before Con- gress, the Federal Goverimient would be the sole agency collecting tobacco taxes, rebating one-sixth of such collections to states imposing no tax on tobacco products. In showing how duplicate taxation results in de- creased consumption and consequent lower tax yields, Mr. Edmonds said: We are bound to recognize that there are certain taxes which, by their nature, can be administered by the Federal Government more economically and effi- ciently than by the state governments, and yet in some cases they are taxes which, like the estate tax, had previously been reserved to the states. During the present economic depression, a new tax difficultv has developed; namely, that if one juris- diction dev'elops what seems to be a productive tax, the other jurisdiction at once invades the field, and the joint pressure of the two jurisdictions may result in injustice, inequity and, eventually, the elimination of the revenue desired. Situation Presents a Challenge This situation presents a challenge to the economic sense of the American people. Upon the one side, we find a grou]) of taxpayers who claim to be \yilling to pay equitable taxes and whose prosperity is funda- mental in American life. They are asking not neces- sarily for relief as to the amount of taxation, so much as relief in the variety of taxation. They admit the necessities of the >talc* l)ut they challenge the policy of the state in plaguing them with a series of inflictions wliich are comparal)le in number and bitterness to the plagues sent upon Egyi't. ' Tobacco and gasoline arc ilhist rations of thi^ tendencv. Tobacco has been taxed by the federal gov- ernment for more tlian one hundred years, and has be- come, from simplicity and ease in coHection, one of the most important taxes in the federal scheme. Recently, the states have been attracted to tlie same iield, and there are now fourteen states which have imposed taxes in additicni to the Federal tax upon to])acco prod- ucts. Obviously, two independent jurisdictions, taxing the same product on ditYerent V)ases and by dilTerent principles, may justify their actions as constitutional. But they cannot obtain any support on an appeal to common sense. Excessive Taxes Cut Yield It is noteworthy that with both tobacco and gaso- line or( rtaxation has residted in diminished consump- tion. The gasoline consumption in the United States for the first six months of 1982 as compared with the first six months of 1931 indicated that in the states where the tax rate was two cents, there was a 6.7 per cent, increase. Where the rate was three cents, there was a decrease of 1.3 per cent., and the decrease con- tinued with a higher rate of tax until, in the states that had a seven-cent tax, the decrease was 13.3 per cent. AVith reference to cigarettes, the situation is even more striking. Fourteen states, the latest of which is Louisiana, are levying cigarette taxes at a rate of from two to five cents per package on top of a federal tax of six cents per package, making, in a state imposing the tax of five cents, Arkansas, a total tax of eleven cents, as compared with the manufacturer's net price of 4.58 cents. What has heen the effect? State sales taxes on small commodities irortc a discrimination afjainst the nfailcrs of the state because it is so easy to J'are small rommtHlifies shipped in interstate commerce from, sur- rouudino states. If is interesting to nofr that i)i the r lilted States the annual per capita consumption of (iaarettes in 19S0 amounted to 975, nhereas five states, which in that year levied a tav solely on cigarettes, collected taxes on 431 ciyarettes per capita. Effects on Federal Revenues The Federal Government has now had its revenues seriouslv affected by this situation, and Kepresentative Robert L. Doughton of North Carolina has introduced in the House of Representatives Joint Kesohition Xo. 54(), which recites that several of the states have levied taxes on cigarettes which have impaired the sales of cigarettes and have contributed to a reduction in the revenue of the Federal Government. In other words, the law of diminishing returns has c<.mmenced to operate, and now the Federal Govern- ment, which has contributed by its gasoline tax to a decline in the revenue of the states, finds itself in a similar position with reference to cigarettes. Kepresentative Doughton has proposed in his res- olution that one cent of the six cents collected by the Federal Government be returned to the states accord- ing to their population, as shown by the last preceding decennial census, provided the states will not impose any excise, occupational tax or fee on the manufacture or sale of cigarettes durinir such period. If this resolution were adopted on the basis of the fiscal ifear ending June :U), iu:i:2, there would be $66,- 129,770 returned to the states, ami in practically every state imposing a tax on cigarettes there would be a larger distribution than nnder the separate state tax, uiihout any of the expense of collection. Moreover, the Federal tax requires supervision of the manufacturers, who are few in number, while the >tate tax requires supervision of the retailers, of whom^ there are nearly a million. The ditTerenc<' in cost of collection l>ecomes evident. A< the Supreme Court has frecpiently stated, tax- ntioii is a practical matter. Its object is to raise re%'- Miue for Government, and incidentally to raise that rev- *'nue bv such methods as will not dislocate the maehin- 4 rv of" business or the industrial development of the country. Coordination or Chaos? Any commodity which is freely transferred in in- terstate commerce can be taxed more readily by the Federal (Government at the place of manufacture than by the state government at the place of distribution. To my mind the (piestion is not so much what are the constitutional or legal rights of the parties as it is a practical question as to how best may the result be obtained. (Continued on Page 17} February 15, 1933 Say You Saw It in The Tobacco World 53rd year 17 IMJliLL'llLi'|ii2fllLL'll^-iJ|tyiiiy^lt.^l^|tli'ltl^*i^^ News from Congress {Continued from Page 10) Legislation to amend the antitrust laws to permit industry to enter into agreements to limit production and plan coo])erative action through self-regulation was urged before the House Judiciary Committee Feb- ruary 8 by representatives of industry and labor. Declaring that recovery from the depression is re- tarded by the uncertainty* of antitrust law adminis- tration, witnesses said that such legislation would "in- troduce a badly needed not<' of hope for the correc- tion of unemployment, increase of i)urchasing power and improvement of commodity ])rices." Specifically it was urged that Congress immedi- ately enact interim emergency legislation to make clear theVight of the self-regulation of industries by volun- tary cooperative action and that it investigate the operation of antitrust laws, including those of the proposed interim legislation. *'The ])resent economic depression has created a situation generally throughout industry in which ca- pacity to produce is far in excess of consumption," it was declared by James A. Emery of the National As- sociation of Manufacturers in presenting the witnesses to the committee. "This results in a progressive forcing down of prices, with not merely a wiping out of any return for capital, but a reduction of wages toward the starvation limit. It thus destroys the pur- chasing power and dries up the sources of national revenue." FINGERPRINTS TRAP YOUTH Fingerprints taken on an automobile from which, according to ])olice, several hundred dollars' worth of tol)acco was stolen last summer, led to the holding in tf.r)(X)0 bail for court of a youth, seventeen, of Wharton Street near Thirty-eighth. The youth was arrested last week as a suspicious character at Twenty-first and Keed Streets lie de- nied connection with the robbery of the tobacco, from a car parked in fr(»nt of 141!) l»oint lireeze Avenue, hut confes.sed, police saie deter- mined with reference to the nature of each tax. Sales taxes, ill general, should be imposed and collected by the federal government, either with an allocation of a portion of the revenue to the states divided upon the basis of sales, if such basis can readily be determined, or, if not, upon the basis of population. Here, then, is a broad (luestion filled with impor- tance for the American ])eople. We must dissociate from it any atempt to wr)rk out a scheme of political aggrandizement for any particular collecting bureau. The country is tired nV the increase in officeholders, and wants a decrease. The people are insisting that, wlHM-e that decrease can be secured through having one uf the branclM's of the government assume a duty for the others which, in the nature of things, it is better fitted to render, it shall l>c done. The issue is l>etween co(»rdinatioii and chaos, and in that issue the duty of the legislator is plain. Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. ^a^iiMj iri«(irir»ir«virir»(ir/8\ir«flMMr?t FOR SALE FOR SALE— MODEL L UNIVERSAL BUNCHING MACHINE; No. 18 Strickler Tobacco Scrap and Stem Cleaning Machine; Presses; Molds. J. D. Foy, Dothan, Ala. FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE— No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD MANUFACTURING FIRM OF HAVANA QUALITY CIGARS will serve orders in any quantity to discounting dealers, at profitable prices. Satisfaction guaranteed. Address for particulars "Fair Dealing", Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco m«lSow and smooth In charactet^ and Impart a most palatable flavor OAYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTIIN. ABOMATIZEB. BOX FLAVOBS. PASTE SWEETENEBS FRIES 8k BRO.. 92 Reade Street, New York j IMPERIAL TOBACCO COMPANY DIVIDENDS The Imperial Tobacco Company of Great Britain and Ireland, Ltd., has declared extra dividends of one Nliilling on the ordinary registered shares, free of tax, and on American depositary receipts for ordinary reg- istered shares, free of tax but less expenses of depos- itary, both payable in 1933. PUT THIS IN YOUR PIPE Montreal, Quebec, January 26: The per capita con- sumption of tobacco in Canada in 1932 was 3.72 pounds, according to tlie agricultural department of the Cana- ilian National Railways. Whollv smoke. BAYUK CIGARS EARNINGS J^avuk Cigars, Incorporated, rei)orts lor tlio year ended December :U, VXVl. net loss of $l,2(J2,r)r)() after all charges, including de|.reciation, amortization, intej- t'st, etc. This compaios with net income of $2r)r),7.)l for 1931, after taxes, depreciation, interest, etc., but iH'fore inventory adjustment of $1,107,012 charged ntrainst surplus account. ,. .., in Gross earnings for 19:^2 amounted to ^1,242,411, against $2,0.")9,102 for tho yoar acquired by The Standard Com- mercial Company. Cincinnati. Ohio, and re-transferred to Master- piece Cigar Companv. (irand Rapids. Mich., January 17, 1933. LORD MONTAN:— 23,124 (Tobacco Leaf). For cigars, cigarettes, tobacco, cheroots and cigarros. Registered April 9, 1902. .\nd No. 26,604 (Trade-Mark Record). 1 .-r cigars, cigarettes and tobacco. Registered April 10. 1902, by Louis S. Cohn, Butte. M..nt. Trans- ferred to I. Lewis Cigar Manufacturing Co.. Newark, \. J., and re- transferred to National Cigar Stands Company, New York, N. Y., Januarv 27, 1933. CHAMPLAIN:— 12,894 (U. S. iobacco Journal). For cigars. Rjegi>tered November 22, 1890. by Powell. Smith 8c Co., New York, N. Y. Through me>ne transfers acrjuired by F. E. Fonseca, Jr., New York. N. Y.. and transferred by Irving Trust Co., receiver of F. E. Fonseca, to Morris Baum, Mount \ernon, N. Y., September 15, 1932. BRITISH TOBACCO GROWING GAINS Empire profcreiKMs currency dei)re('iati(>n and strenuou.s advertising Jiavc conihinod to hrini^ about a vast increase in consumption of Empire ^t'o^vn tobacco in Britain. In the iirst ten montlis of IH.TJ the Phiipire supplied 4:*,(HM),(K)() pounds, compared with 8:J,(KKMHK) pounds from the United States. That is to say, tlie pro- portion roughly i^ one to two, while in the corres|>ond- ing period of VJ'M) it was less than one to three. The main source of the Empire supply is Khodesia, which anchored its currency to sterling immediately Britain went off the gold standard. HAYS CHARGES UNITED ASSETS HIDDEN UST before the United Cigar Stores Company of America was placed in bankruptcy the par- ent company transferred an unspecified amount of money to a newly organized sub- sidiary, the Whalen Drug Company of Delaware, which is still operating, according to evidence given before Keferee Irwin Kurtz, 15 Park Row, New York, on Feb- ruary 6. The witness was James P. ^[cNamara, con- troller for United Cigar Stores Company, who was under examination by :\[ortimer Hays, counsel for a landlord-creditor. :Mr. Hays is attempting to prove a charge that the bankrupt company concealed assets by the transfer of funds to subsidiaries. Counsel did not go further into detail as to the conditions surrounding the transactions with Whalen Drug, but asked the witness to consult his books and ascertain the exact amount of the transfer by Febru- ary 7. Mr. :McXamara denied implications by counsel that in the filing of bankruptcy schedules in Massachusetts and Delaware the i)arent company had made false statements. The witness said that mistakes made in the original schedules had, in each case, been corrected, and that the original papers were not '* deliberately fraudulent." Mr. :McNamara was unable to throw any light on whv assets valued at $2."), 000,000 in the receiver's re- port were listed in the bankruptcy schedules as mostly of ** unknown value." Whatever was the reason, he said, it was not to conceal the real value of the assets. lie suggested that i)erhaps the receiver had used the book value of assets and not their actual value. The latter, in his opinion, was "undeterminable," and he had so decided in making up the bankruptcy papers. **Did any one tell you either directly or indirectly that the full* value was not to be shown!" Mr. Hays asked. "No," replied the witness. Godfrev (Joldmark, counsel for the bankrupt, charged tluit Mr. Hays had an ''ulterior motive" in prolonging the inquiry, stating it as his opinion that the purpose of the "single-handed investigation" is to (levelop material to ])e used in civil suits, thus working a hardship on creditors owing to the €Xtra expense. RETAIL STORE PROBLEMS (Continued from page 14) in front of their store, or at least within a few steps from it. so that rural patronage, particularly, would have no difliculty in loading and unloading their mer- chandise both bought and sold. While the matter of what constitutes parking facilities varies with the size of a citv, the need, regardless of the interpretation, ex- ists in all those cities where a lack of such facilities was reported. Narrow Streets Congestion resulting from narrow streets was re- ported by 1.8 ])er cent, of the stores in Group I, 5.7 per cent of the stores in Group II, 5.4 per cent, of the stores in Group III, and 4.1 per cent, of the stores in Group IV. Subcenter .shopping districts in Group I reported this as a 3.6 per cent, cause, while subcenter sliipping districts in (iroup II made no mention of it. It is inter- esting to note that this factor was reported as less of a cause in the largest cities. It does its greatest harm in cities in the second group, and is almost as great a factor in the two lower groups. (To be continued) BETTER CONTAINERS FOR BETTER CIGARS Today the cigar manufacturers of the country are offering their customers a better product, for the money expended, than has been possible for many years. The appeal of these exceptional values can be greatly in- creased by good packaging, for good packaging is essential to all successful merchandising. The new improved AUTOKRAFT cigar box is available to all cigar manufacturers. It will not only enhance the worth of a brand in the eyes of the consumer, but at the same time it presents opportunities for economies to the cigar manufacturer. t^ Phi la.. Pa, Hanover, Pa. Cincinnati, Ohio York, Pa. AUTOKRAFT BOX CORPORATION Chicago, iil LIMA OHIO Detroit, Mich. 5p , . ; . .^ Wheeh'ng, W. Va. ,^^^ i-iir PArH MONTH AT 236 CHESTNUT ST., PHILA., PA. PUBLISHED ON THE 1ST AND 15TH OF EACH MOIN in mi Are the Only Natural Humidor for Cigars. Pack your cigars in wooden boxes and preserve their delicate aroma, mellowness and flavor right up to the time they are passed over the counter to the customer. Discriminating cigar smokers prefer to select their favorite brand from a wooden box- and it's good business to cater to the dealer and con- sumer by packing your cigars in wooden boxes. WHEN BUYING CIGARS Remember that Regardles* o» Price THE BEST CIGARS ARC rAOLED in WOODEN BOXES Ai/Jivsmtywwiia« viL:u-uiii:i:L;rj:i;L'g!L"gi-T 'm^' nm^i^^mjM^mjmmmi^mJiMM^^^ Volume 53 THE TOBACCO WORLD Number 5 EsUblished 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the Ist and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter. December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3. 1879. $2.00 a Year PHILADELPHIA, MARCH 1, 1933 Foreign $3.50 FORMAL OPENING OF CORONA PLANT AT TRENTON KADKD ])v Governor A. Harry Moore, of New Jersey, and former Governor Alfred E. Smith, of New York, tliree hundred tobacco con- noisseurs, prominent in industry, finance and public life, Saturday (February 25th), inau-umted the new plant at Trenton, New Jersey, where La Corona and ither fine Havana ci^nu's will be rolled The event was an epoch-makin- one in the history of fine Havana cigar production for the United States and world m '1 rk e t s Governor Moore, on behalf of New Jersey, ac- cepted from Ferris Le Hoy Francisco, member of the firm of architects who built the plant, the key to the building, and then presented the key to the owners with a brief address. , A luncheon followed the ceremony, after which the L'uests were taken on an inspection tour ot the plant and shown the scientific features that will help make possible the production of -La Corona- and other leading ci^^ar brands at prices ^^reatly lower than when thev were produced m Havana. The new plant will furnish ivii:ular employment to 2000 persons. ^^ . ., ^ ^^ To devotees of the finest Havana ciprars, the es- tablishment of the new rolling plant at Trenton has a special siirnificance. It makes possible economies that are passed on to the smoker in the torm o greatly reduced prices for -La ( V,rona" aiul other well-known cigars identical in rpiality and tlavor to those hitherto rolled in Cuba. . ,. ^t Transference of the rolling operation trom Havana to the United States involves no change in the long process of preparing the tobaccos used exclusively in Havana citrars. These tobaccos, raised only in one small district in Finar del Hio province, ( uba, will be Krown, aged, cured, prepared aiK blended in ( uba with the same expert and ])ainstaking care that has been lavishe 337,000 face value of its 5 per cent, bonds, thereby reducing its funded indebtedness to an aggregate ot $1(;,428,450, and its tixed funds charges by the amount of $191,589 a year. GENERAL CIGAR ELECTS DIRECTORS At a meeting last week, Sidney Weinberg was elected a director of the General Cigar Company, In- corporated, to succeed Arthur Sachs. Other directors were re-elected. . . ^ n o i, p Mr Weinberg is associated with Goldman, Sachs & Companv, and is also a director in the following com- panies: 'Sears, Roebuck & Company, General Foods Corporation, National Dairy Company, Continental Can Company, B. F. Goodrich Company, the Lambert Comi)any, and others. TOBACCO PRODUCTS EARNINGS Tobacco Products Corporation ^l^ows income ac- count for eleven months to December 31, 1932, of the fol- lowing item- : Lease rental, $2,291,666 ; interest on bank balances and cash balances held by debenture trustee, ^3225; total income, $2,294,891; "^terest paid and ac- crued on 6Vi> per cent. debentures,_$2 120,192 ; amor- tization of lease, $5073; expenses, $Vf2; provision for Federal taxes, $21,000 ; net income, $140,844. 53rd vear THE TOBACCO WORLD March 1, 1933 Trade Notes The new sizes of the ''Wasnier" brand, of John Wagner & Sons, are meeting with an excellent reception among consumers. Otto Schneider, reprcsontinpr the Corral AVodiska j Ca. factory, Tampa, manufacturers of the "Bering" cigar, was a visitor at Yahu k McDonnt'll's hist week. J. P. Given, Buffalo, territorial manager for Bayuk Cigars, Buffalo, N. Y., was a visitor at Bayuk head- quarters over the week-end. A. H. Mass, formerly associated with I. J. Abram- son, tobacco jobber of South Fifth Street, has severed his connection with that firm and become associated with the purchasing department of the Sun Ray Drug Company, which operates a group of cut-rate drug stores here and in nearbv cities. (( As Y^'ou Like it" cigars, a private brand of Yahn & McDonnell, is l)eing featured in their window dis- plays in several of their retail stores with good re- sults. This brand is well established in this territory and has recently been introduced to Metropolitan New York and Newark consumers, where it has immediately won a host of friends. Ben Lumlev has recent Iv returned from a visit to the factories which he represents in Florida, and n'- ports these factorit's experiencing a good volume of business. J5en will journey to Washington and Balti- more this week in tlie interest of his brands, "Dulce" and *' Verdi," of the Sommerfeld factory, and the *' Garcia y Vega" brand. Bayuk Cigars, Incorporated, have reopened their factories at Third and Spruce Streets, and at Eleventh Street, which increases the number of additional work- ers employed since the first of the year by this pro- gressive firm to more than one thousand. The reopen- ing of these two factories is necessitated by the highly gratifying volume of orders for the "Bayuk Phillies" which has been pouring into headquarters since the re- duction in the retail price at the first of the year. p]. A. Kline, of the ''Meilalist" factory, was in town last week visiting the distiibutors of his brand, Yalm &, McDonnell, of G17 Chestnut Street. The new size of the "Medal of Honor" cigar, dis- tributed by John AVagner iV: Sons, is rapidly forging ahead among consumers and gaining new frit>nds daily. The Haas-Baruch Conqiany, of Los Angeles, Cal., distributor for Bayuk Cigars, Incorporated, is keeping up a fine stride* on "l^hillies" in their territory. Bayuk *s territorial manager in that section is John J. Snvder, John Knight, formerly associated with Yahn & McDonnell, and well known in the West IMiiladelphia district, has joined the sales forces of George Ziffer- blatt & Company, manufacturer of the "llabanello" cigar, and will represent that firm in his old territory, succeeding F. J. Cliflord. 1^. ('. Jessa, n^presenting the Heine Tobacco Com- ])any, Massilon, Oliio, i- in town doing ]jroniotional work among the retailers and consumers on "Heine's P>lend," a hiirh grade smoking tobacco. Yahn & Mc- Donnell have recently been a])point«»d sole distributor for \h\< brand in thi^ tiMritoix and ar<' gaining many friends for this brand. The "Mint IVrfeeto," a Yahn & McDonnell brand, which was recently re(luee(l to retsiil at live cents each, is enjoying a sjjlendid sale. .John Flanigan, of the M. J_. Daltlui store, in the Yahn iV: McDonnell Building, t'»17 Chestnut Street, is displaying the "Mint Perfecto" in the window of his stand with good results. The display is eidianced by a few re|»licas of real gold ])ieces, which is attracting considerable attention and favorable com- ment. "Monticello" smoking tobacco, the recently mar- keted brand of John AVatrner ik Sons, continue- to forge ahead far )>ey. i- particularly \vell spoken of because of its good tlav(»r, mildness and tine aroma. The " M(»nticello" cigarett<' is enjoying an ex- cellent volume of sales, as well as the "Monticello ' brand of cigars. •)i March 1, 1933 Say You Saw It in The Tobacco World 53rd year The stage is all set for target practice. The magician lifts his bow and aims an arrow at the bull's-eye. Uis lovely assistant then steps in front of the target and he shoots the arrow —apparently through her— and it fixes itself in the very center of the bull's-eye! And she smiles through It aU white the audience gasps! iXPLANATION: The arrow which the marksman "shoots through" his assistant simply folds up into the crossbow! The arrow which is actually embedded in the target is shot by the girl herself from a belt concealed under her dress. She releases a little spring and the arrow shoots straight into the bull's-eye! It is all done in a fl.ish! So quickly the eye cannot detect the girl's movements! To heighten the impression that the arrow has gone right through, the girl releases a ribbon from the front of her dress — the continuation, appar- ently, of the ribbon attached to the arrow in the target. c « !•> Ii;lit. 1 I U .1 |{f>nroniiiani U lmJ It's fun to be fooled ...it's more fun to KNOW Like to sec throuf^h tricks? Then let's look at another... the illusion in cif^a- rette advertisin|{ called " Cijjarettes and Your Throat." The audience is told that by certain nia{(ic processes tobacco can be made ■s soothinft as cou^^h medicine. EXPLANATION : The easiest cii{arette on your throat is the cijjarette that is made from the choicest ripe tobaccos. Cheap, raw tobaccos are, as you would naturally expect, harsh in their effects upon the throat. It you have to consider your throat. the quality of the tobacco in your cigarette is important. I^P It is a fact, well known by leaf tobacco experts, that Camels are made from finer, MORE EXPENSIVE tobaccos than any other popular brand. Camels are as non-irritating as a ciga- rette can be becauseCamels use choice, ripe, costlier tobaccos. And because of the matchless blend- ing of these costlier tobaccos Camels have a rich bouquet and aroma. ..a mild, cool, delicious >?oror. Keep the air-tight, weldedHumidor Pack on your Camels. . .to assure yourself and your companions a fresh, cool smoke. _ NO TRICKS JUST COSTLIER TOBACCOS IN A MATCHLESS ■LINO 53rd year THE TOBACCO WORLD March 1, 1933 Trade Notes George Stocking, of the Araiigo y Arango factory, was ill town hist week visiting Jolin Wagner & Sons, local distributors of the " Don Sel)astian" brand, which enjoys a good sale in the hotel and club stands here. Harry S. Rothschild, president of Bayuk Cigars, Incorporated, was a recent visitor in Detroit, where he visited his mother, who was celebrating her ninetieth birthdav anniversarv. The Arthur F. Schultz Company, Erie, Pa., con- tinues their good showing on Bayuk cigars in their ter- ritorv and were recent Iv aided l)v K. T. Clilford, Bavuk salesman, in expanding the sale of Bayuk cigars. The Hoffman Cigar Company, Norfolk, Va., has just closed a successful drive on Bayuk cigars, and have been assisted by G. L. Brauzell, Bayuk teriitorial man- ager. F. Nagel, San Francisco territorial manager for Bayuk Cigars, Incorporated, has been busily engaged in supervising promotional work on ''Bayuk Phillies" in his territory, and jnsi closed a successful campaign with the Oaklaud Tobacct» Company, of UuklaJid, Cat. An involuntary petition in BanTcruptcy was filed last week against Alfred L. Banham, trading as Samuel T. Banham & Brother, wholesale and tetail tobacco, 4367 Main Street, Manayunk. Creditors are Brandle & Smith Company, $178; R. E. Rodda Candy Company, $96 ; Klein Chocolate Company, $235. Herman N. Sil- ver, counsel. On Saturdav or Sundav, Februarv 18th or 19th, • W ~ ft ' thieves broke into the warehouse of John Wagner & Sons, 233 Dock Street, and escaped with 5tK),tHJ0 cig- arettes of the popular brands. The theft was not dis- covered until Monday morning and no trace of the thieves has been found. Retailers and jobbers through- out the citv were immediatelv notitied to be on the watch for *' bargains" in the ]>opular-priced luands of cig- arettes. Entrance was gained through a buibling in the rear of the AS'agin-r headquarters and thence through the roof of the Wagner ]»uihling. Tli<' thieves were apparently exix^rieiiced, as no attempt was made to force any doors or windows and spring the alarm. The combination was l)roken otT the safe on the lirst floor, but it had not l>i*en opened. The loss is fully covered bv insurance. CONSOLIDATED CIGAR EARNINGS The Consolidated Cigar Cori)oration in its pam- phlet report for the year ended l)ecem])er 31, 1932, reports profit of $935,858 after taxes, depreciation, etc., but before considering reduction of leaf tobacco inven- tories as at July 2, 19.')2, to value determined l)y the management, which resulted in a charge of $1,242,650 made directly against surplus account. This compares with net income of $2,122,173, ecpiivalent, after allowing for dividend requirements on subsidiary preferred divi- dends, to $5.04 a share on 250,000 shares of common {stock. BROWN & WILLIAMSON ADVERTISING DOUBLED HE Brown lume of sales is being recorded. For SOUK' time after tlie introduction of this brand in tlie middle western stales, the Axton-Fisher Company experienced such an unexpected demand that they were unable to exi)aneen of considerable importance in the consumption of higher priced cigars. In the fiscal year 1931-32, 8,000,000 out of the total consumption of 10,000,000 Class E cigars, i. e., cigars retailing at more than fifteen cents each, were imported from Cuba." Cj3 Ct3 Ct3 Data designed to disprove conclusively the Demo- cratic charge that the "excessive" taritf rates of the llawley-Smoot Act are responsible for the high tarilTs adopted by the rest of the world is now being gathered by Republicans for use during the coming special ses- sion of Congress should attempt be made to enact low- tarilf legislation. Tariif debates of the past few sessions have been marked by the frequent charge that our taritf drove "free trade" England to the adoption of import duties and caused other countries to increase the height of their tarilY walls. As a matter of fact, it is disclosed by official rec- ords of the Government that prior to the enactment of the abnormal importations act of 1931, England was anything but a free-trade country, her revenue from customs collections during the fiscal year 1930-31 be- ing approximately $o90,000,000, which was 5G per cent, greater than our own duty collections of $378,000,000. Furthermore, it is shown by the records, the aver- age customs duty collected on imports entering the United States during the eight-year i)eriod 1924 to 1931 was considera))ly less ihan that of the majority of the leading p]uropean countries. American tarilTs are lower todav than those of many countries, it is asserted, with the result that ])rod- ucts from depreciated-currency countries which are Vmrred from many Euroi)ean markets by high tariiYs lind easy access into the United States. Ct3 Ct3 Ct) Probable failure of the elTort to secure bankruptcy relief legislation this session is seen in the action of the Senate Judiciary Committee in submitting as a substitute for the bill passed by the House of Repre- sentatives a draft in wliich no attempt is made to pro- vide for the reorganization of corporations findinir themselves in financial difficulties — one of the major purposes of the legislation — and confining relief to in- dividuals and farmers. The sections iiertainiug to cori)orate reorganiza- tions, the committee complained in its report, "wer<» so far-reaching and so controversial that there could l>e no hope of getting this bill through for the relief of the individual debtor and the farmer unless they were left out." {Continued on page 13) March 1, 1933 THE TOBACCO WORLD 53rd year A NEW BROWN & WILLIAMSON PROFIT-MAKER! SPECIALLY BLENDED FOR PIPE and CIGAREHE HERE'S a new B. 86 W. product that is playing sweet music in the till wherever dealers put it in stock. DIAL is specially blended for pipe and cigarette. A package of cigarette papers is attached to every tin. DIAL is full ounce and three-quarters of fine tobacco put up to SELL FOR 10c. DIAL starts off with a good name and a good-looking package and a whale of a re- ception from the trade and public. It's a real value for customers. A real profit- maker for you. GO TO IT! If you haven't your stock yet, your job- ber is ready to hurry it to you. Get in touch with him today. BROWN & WILLIAMSON TOBACCO CORP., LOUISVILLE, KENTUCKY Brown fc WilHam»n product, have b«n d«ipicd to bring you '■'^'^^'^'J'^^^^^^^^;^^^ DricM New productsare added to fit the times. Are you gettmgyour share of profit from these live, ''"'"•'^«LVuem,:SirWalterRale,ghSmokmgTobacco.RaleighC,garettes.Go^den «^ G am Smokmg Tol«cco. Wing. Cigarette. «>d Target Cigarette Tobacco? 10 53rd vear THE TOBACCO WORLD IVrarch 1, 1933 DRUG, INC., NETS $13,467,092 i^'KOXIMATKLY $23,662,580 of a capital sur- l)lns to be created l)y Driin:, Incorporated, tlironi»:h a reduction of ca])ital from $85,468,228 to $35,01 4, J)JH) will be utilized in adjusting book value of ])roperties of subsidiaries, eliietly the Louis K. Liiru:ett Conipaiiy, it was revealed in Drug's annual report issued last week. At the same time it was dis- closed that tlie sak^ of tlie corporation's interest in Boots Pure Drug Company. Limited, of Great Britain, was not a complete divestment of the holdings but a {)artial one. Drug, Tncorimrated, reports net profit for 1932 of $13,4()7,()1>2, including returns from subsidiaries and after all expenses, de])reciation and income taxes, equal to $3.84 a sliare on 3,501,499 shares of ca])ital stock out- standing at the end of tlie year. This compares with net profit of $19,440,456, or $5.55 a share, for 1931. Earnings of the consolidatcil com])anies for 1932 in- clude cash ilividends of $921,909 from Boots l*uro Drug, in which the company holds a 75 ])er cent, interest valued in the l)alance sheet at $23,7!)9,7.*>7. Because Boots' fiscal vear ends March 31 its earnings are not included in the consolidated aecount. It is estimated, however, that Boots' earnings for the year ended De- cember 31 (with sterling exchange comi)uted at $3.33) were $1,841,219. Referring to the Boots deal, A. H. Diebold, presi- dent of Druir, savs: "AVhile an arrauirement for a sub- slant ial i)art of these hohlings had been made, the Brit- ish Treasurv officials concluded that such an arrange- ment conflicted with the i»resent policy of the Treasury with res])ect to the offer of securities to the British public. Arrangements have been made for the disposal of a substantiallv lesser number of shares." Income Account The income account of Drug, Incori)orated, com- pares as follows : 19.12 . . $59,753,086 .. 41,803.160 2,4(M;,392 Depreciation 2,7!>7,668 Gross profit ........... Mdse. and opor. expenses Other income 2,3:U.605 1,756,951 1931 $66,351,626 4:1,148.136 3,009,077 2,312,665 2,150,295 2,30!),150 19,440,457 Int. on fund, debt Income tax res Net profit 13,467,093 l)ividends in the amcjunt of $13,966, l.*>6 were ])ai(l out by Drug, Incorporated, during 19i>2. Harned sur- plus on December 31 stood at $24,924,2.*)2, ccmipared with $24,974,782 on January 1, 1932. Because of the ])roposal to reduce capital by chang- ing the no-par shares to shares of $10 par, the re})ort also inchides a ])ro forma babnice sheet giving <'lVeet to the pro|)osed cluniges. Th<' principal ditTerences in this from the Deceml>er 31st balance sheet, aside frcmi the caf)it;d reduction, arc a (U'crease in fixed assets from $37,379,488 to $21,876,704: a reduction in trade-marks, good will, patents, etc., from $45,232,443, to $42,253,959 and the creation of a caj)ital surphis of $26,790,658 after adjustment of property accounts. Current Asset Ratio 6.4 to 1 The consolidated balance sheet as of December 31st sliows cuirent assets of $57,484,894, including cash of $16,129,745 and marketabh' securities at (juoted values of $10,973,749. Current liabilities were $8,9(14,548, a ratio of 6.4 to 1. At the end of 19:n, current as.sets totaled $61,084,687, including cash of $1(M»85,311 and securities of $10,132,521. Current liabilities were $12,196,125. (Continued on Page 17) SEVEN MONTHS' WITHDRAWALS FOR CONSUMPTION Cigars : dass A— United Slates . . Puerto Kico . . . . Philii)pine Island Total . First 7 Mos. Fiscal Yr. 1933 2,071,705,005 - 37,247,885 103,367,515 + — Decrease -\-Increase Quantity 132,996,425 22872,790 OO", QOr; • » • • 2,212,3,20,405 — 155,643,890 Class B— United States ... Puerto Rico Philippine Islands Total Class C— United States . . . Puerto Kico Philippine Island; 26,467,643 72,500 494,853 27,034,996 440.900,340 865,050 179,522 20.487,343 727,850 389,963 21,605,156 303,258,450 1,962,094 130,590 Total 441,944,912 — 305,351,134 Class D— United States . . . Puerto Rico • . ♦ , . Philippine Islands Total 31,454,520 1,500 1,876 — 14,673,276 — 16 500 — 2,660 31,457,896 — 14,692,436 Class E— United States .... Puerto Rico Philipi)ine Islands. Total Total All Classes: United States . ... Puerto Rico Philipi)ine Islands. Grand Total.. Little Cigars: United States Puerto Rico Phill]»pine Islands. 4,056,781 26,763 4,083 544 2,574,584,289 38,186,935 104,070,529 2,716.841,753 149,188,694 2,800,000 — 4.770,559 — 500 -f 17,561 ~ 4,753,498 476,186,053 25,579,734 280,327 502,046,114 30,999,239 200,000 Total 151,988,694 — 31.199,239 C'igarettes: United States ....60,310,578,076 I'uorto Rico 2,008,340 Philippine Islands. 1,162,770 Total —2,668,731,259 — 2,700,060 — 57.260 . 60,313,749,186 —2,671,488,579 Large Cigarettes: United States , . . Puerto Rico Phili])])ine Nlands Total 1 ,862.336 330,000 10 366 1,012,346 242,500 10,166 2,202,702 — 1,244,680 SnufTdbs.): All United States. 20,293,265 Tobacco, manufactured (lbs.) : United States .... 178,184,383 Philippine Islands. 167 2,197,821 12,791,633 549 Total 178,184550 — 12,792,182 BAYUK BULLETIN VOLUME I MARCH 1, 1933 NUMBER 4 PHULOFAX (The Retailer's Friend) SAYS The liuipest word in the human linRo is the word "try." To "try" is to "attempt" — to "do" is to "DO." The chances of getting an order are dependent upon the SURE NESS of your belief that you CAN get it and the THOROUGH- NESS of your deter- mination that you 2vill get it! "Waiting on customers" has a double meaning. We prefer the word "serving." Don't you? — o — There's no censorship on this col- umn and nobody is held responsible for it but old D. B. I. himself. But, the BAYUK BULLETIN is YOUR outlet for suggestions helpful to ALL who smoke cigars, sell cigars and boost cigars. — o — Mr. Jobber, when John Jones, a retailer, stops buying from you, do you make a PERSONAL investigation as to why? — o — "There are only two kinds of cigars ^those that sell and those that don't." Bunk! Somebody sprung that in 1760 B. C. and is quoted again every so often. Two kinds of cigars, yes . . . those that don't sell and those that have a RIGHT to sell! Whether they tomers posted on what you've got to sell — o — What is MORALE? Morale is a luntal mixture of Confidence and ("urage and an antidote for Dis- couragement and Despair. It is a filler of justifiable Hopefulness instead of a feeling of unfounded Helpless- ri» s. Great thing. Morale. Stock up (..lit!! _o — Once again — "Cigars are the most I "nomical form of pleasure." Why h* extravagant? — o — QUERY to all who make all, or the biLr^est portion, of their living out of cuais: In what way did you BOOST ( .k'ius yesterday? In what way and iti how many ways, are y(»u going to Boost CIGARS today and tomor- row? Ask yourself these questions 'iiilv until it becomes a habit to 1 )OST CIGARS! The long and short of it. Long dis- ' and short quality are bed You can't separate them. — o — Thirty or forty brands may give y"ur customers variety . . . and darn little else. SILENT SALESMAN ASKS NO PAY Here's a true story. And there's a moral in it as plain as the plainest that old Father Aesop ever tacked on the tail of one of his fables. A Jobber Salesman entered a cigar store the other day with a bunch of dealer helps under his arm. "Let me put some of these up," he said. "All right," replied the Dealer. "If it'll be any favor to you, go ahead. I don't care." "Look here, old man," said the Salesman, "speaking of favors, I sort of figure I'm doing you one. I'm offering you the serv- ices of an extra salesman in your store. He draws no pay. He never goes out to lunch, he's never sick and never takes the day off. He never does anything but sell goods for you.'' "You win," said the Dealer. "Put 'em up." SMCSMtfd b Harn Walters 99 d^^ D.aL • lMnHa$tJwtih BAYUK CICAKS, INC:.. Pfctt— 'Mpfcia_JMaA*r« nf fimm Hgmrt atme* 1897 well-known, time-tested and sure fire "money-back guarantee". We don't know what bewhisk- ered merchant back in the days of the cave man first used this persuasive argument, but we do know it's still going strong. If you don't believe it— ask Mrs. Ramer. "Confidence," says Mrs. Ra- mer, "has been the basis of our business from the start. We carry only those brands which we can back with our personal guarantee. With every sale we make goes this promise: 'If you are not absolutely satisfied, your money refunded.' "I may say that we seldom have any merchandise returned." And that's a darn good sales plan, if you ask us. Good will is any merchant's most valuable asset. And what "PHULOFAX FIVE GOES TO WOMAN Mrs. G. Ramer Submits Prize Winning Plan for Boosting Cigar Sales The five dollar prize off ered by ' of the customer? And what the Bayuk Bulletin for sales builds confidence more quickly ideas that really sell, goes this and more securely than the Ume to Mrs. G Ramer, of St*, knowledge that the merchant AlhanH L I ^^'^>«'^ quality goods and sells arguments in the world-the i ^^ank roll ? ' ' The principal difference be- tween a cigar merchant and a slot machine is this. The mer- chant is supposed to give the customer the benefit of his experienced judgment and (we repeat) back that judgment with his own money. We can think of no better or more convincing advertising any dealer can do than to pass out a printed slip carrying an uncondi- tional money-back guarantee with every cigar he sells. Of course to do this he would have to confine himself to known ™ be "^Sf ;;^ I brands made by leading manu- will be cheeriuii> ^^^^^^^^^^ g^^ ^^^^^ ^n, ^hy not ? These are the brands that bring him volume sales. Editor's Note: What's your idea of the best way to sell cigars? Maybe the idea will be worth five bucks to you. Send it to Contest Editor, care m^ow .«.»«« - of the Bayuk Bulletin, 9th St is good will except the confidence I Columbia Ave., Philadelphia. EVERY MAN TO HIS OWN TASTE There's no accounting for tastes. The Chinese like eggs a hundred years old. The Turks admire fat women. The Britisher prefers his cigars to be dry. But strange as it may seem, Americans insist on new laid eggs, slender girl friends and fresh cigars. And it's much easier to give the public what they want than to try to convert them. When it's so easy to keep cigars in first class condition, it is a source of continual wonder why so many dealers are neg- ligent in this respect. If you went to a cigar counter and bought a cigar as dry as a withered autumn leaf — what would you think of the man behind that counter? 99 "AND CONTENTS NOTED Among the many interesting letters received the Editor acknowledges meaty epistles from the following con- tributors: C. J. WAGNEai, Brooklyn, N. Y, L. W. Leech, St. Louis, Mo. Eugene H. Bosart, Springfield, Ohio and BAYLK BRANDS BLILD BUSINESS Bavuk Philadelphia Perfeclo Havana Ribbon Mapaciiba Charles Thomson Prince Hamlet 12 53rd vear THE TOBACCO WORLD March 1, 1933 RETAIL STORE PROBLEMS '•oTVV '^5S>^©$^©^^?^^$^^$^^©«^e^e^^^^-^^^^^C^©$^^^^^^^^^N>^^^^^^^^€>^'^ So many persons are unaware of the many aids to business ivhich have been carefully prepared by the United States Government, and so many of those who are aware of these facilities fail to take advantage of them, that we are publishing the following studies as an aid to the retailer. — Editor. (This Study prepared in the the United States Department of Commerce, Domestic Commerce Divi- sion, by a special staff under the supervision of Law- rence A. Hansen.) The Street Car VEHICULAR TRAFFIC CONGESTION AND RETAIL BUSINESS {Continued from previous Issue) Narrow Streets The disadvantages of narrow streets in the Group I cities have in some instances been taken care of by widening thorn, establishing the one-way traffic regu- lation, or taking off the street cars. Such remedial measures seem likewise to accompany the growth of a city. Prominent traffic authorities suggest that it would be well if smaller cities could make similar ad- justment not only as an aid to the present problem of congestion but as a means of facilitating their growth. It may be that merchants in some of the large cities are accustomed to their narrow streets and take them for granted, thus precluding their report insr this point as a cause factor. Again, it may l)e that traffic in these larger cities makes better use of narrow streets through better regulation of habit. Tf the latter is the case, then the cities of other groups have the same opportunity of attaining the relative usefulness of their narrow streets as do the cities in Group I. A questionnaire survey of traffic conditions re- cently made in 233 cities showed that narrow streets checked the use of those streets, particularly in the older and smaller cities. It is commonly granted that business streets should be wider than the main thor- oughfares of a city, biJt the survey in question showed that out of the 233 cities less than one-fourth of them have business streets wnder than the main thorough- fares ; in three-eighths of them the business streets are equal in w^idth to the main thoroughfares; and in the remaininer three-eighths the business streets are nar- rower. Narrow streets are, of course, closely related to parking facilities ; for the wider the stre»^t, the better able it is to take care of parked cars. About one-third of the cities in this group of 233 have widened their streets, and in fully one-half the c(>nirestion has reached a point where the widening of the streets will now involve the expenditure of enormous sums of money. But this expenditure is in many instances not com- parable with the present "congestion tax" which is being paid. It is not known to what extent the one-way traffic regulation has helped to decrease the problem of nar- row^ streets as a factor in producing congestion, but it is said to have contributed largely. It was estimated recently in one city, w^here congestion has likely been as great as anywhere, that the establishing of the one- way regulation had increased the capacity of those streets all the w^ay from 25 to 50 per cent. Causes of vehicular traffic congestion in which the street car is concerned were reported by all groups of cities. These constituted 3 per cent, of all causes re- ])orled by down-town retail areas in the Group I cities, 2.1 ])er cent, of all causes reported by downtown retail iueas in the (Jroup II cities, 1.7 per cent, of all causes reported by the Group HI cities, and 0.4 per cent, of all causes rejiorted by the Group IV cities. Subcenter shopping districts in Group I reported it as a 2.2 per cent, cause, while the subcenter shopping districts in Grou]) II did not report it. To what extent the street car is an actual factor in producing vehicular traflic congestion is, undoubtedly, a debatable question. Any one type of vehicle, or means of transportation, with its own definite traffic lane can hardly ])e held wholly resj)onsible at any loca- tion for a condition in which other vehicles or means of transportation are likewise a part. Just what is meant l>y the street car as a factor causing congestion was re])orted in the following comments: "Street car line terminates 75 feet bevond our location so that the car turns right across the street, causing traffic conges- tion;'' "the slow headwav caused bv street cars causes congestion;" and "the slowness with which the cars are loaded, thus tying up traffic." The lirst comment refers to back switching, which was reported as par- ticularly noticeable and inconvenient to all forms of trallic at corners and is a result, perhaps, of car rout- ing. The idea of "slow headway" was frequently ex- pressed. Since street cars have their own definite lanes of travel and power to move rapidly, it is probable that the "slow headway" referred to is partly a result (»f otlier and slower means of transportation usurping the traffic lane of the street car. Traffic can move no fjister on any one lane than the slowest moving vehicle, and that slowest moving vehicle may be any vehicle occupying the street-car hine. Attention given to tlie loading of street cars indi- cates that this factor may be of coe(iual importance with the terminal or the "slow-headwav" features in the |)rol)lem of the street car as a factor in vehicular- traffic congestion. A street-car loading-time count re- cently taken in seven cities located in different parts of the conntry showed a wide varianc<» of time in load- ing passengers. The city with the highest average showed lit) ])assengers loadeil in 7() seconds, while tho ( ity witli the lowest average showed that 2 seconds per passenger werr* retpiired it" more than 7 or 8 passengers were Ioa realized wlien it is known that in one city at one corner alone ass; and there are sev- eral other ])laccs wher<' trallic may he as trreat or at least closely approached. Even though the unneces- sary delay in loading is but a few seconds, perhaps only 10, that delay experienced by 450 cais would result in 1^4 hours lost time during one period of the day. (Continued on Page 14) March 1, 1933 Say You Saw It in The Tobacco World 53rd year 13 ADVERTISING CODE ENDORSED MK Association of National Advertisers and the American Association of Advertising Au^Micies have announced the endorsement of a code of unfair advertising practices. A re- view committee is planned to review cases presented. This committee is to consist ot twenty members, live each from the two advertising associations, live mag- azine publishers to be chosen by these ten and live additional members not coiuiected with the advertisiug or publishing businesses. The unfair ]»ractice code was drawn up and pre- sented by a joint committee of advertising organiza- tions, and is as follows: 1. False statements or misleading exaggerations. '^* Indirect misrepi*<'^^<'iitation of a product or serv- ice through distortion of details, either editorially or pictoriallv. . «. • x 1 1:„ 3. Statements or suggestions offensive to public deeencv. , . . • i ,„ 4 'statements which tend to unn satistactory leg- isl'ition in the short time remaining this session. 14 53rd vear THE TOBACCO WORLD Marcli 1, 1933 RETAIL STORE PROBLEMS (Contimicd from page 12) No Expression The *^no expression" block of i)erceiitages in chart 1 rotors to tho.so stores which reported interference but did not express themselves as to what they con- sidered tlie cansos of the congestion x)roducing that in- terference. Summary Summarizing the rei)ortod causes of vehicular traffic congestion, this survey showed that merchants generallv consider fault v tratlic regulations in the form of unenforced, misfit ted, and insiifficient regulations, with the greatest emphasis placed on unenforced regu- lations, to be the dominant cause in all cities through- out the country, and a cause varying only in propor- tion to the size of the city. Lack of i)arking facilities was given as the next greatest cause pr(»dncing conges- tion, a cause not oidy varying in proj)ortion to the size uf the city, but also with slightly ditforont interpreta- tions. Narrow streets ranked third as a cause, exist- ing chietiy in all but our Jargest cities. Whore cities have grown, various remedial measures, such as widen- ing streets or establishing the one-way trallic regula- tion, have been made use of to overcome this cause as a producer of cimgostion. The street car as a cause was reported in numbers i)roportionate to the size of the city. Li connection with street cars as a factor, the real cause is a multiplicity of causes, and no one vehicle or means of transpoitation can be cited as the sole factor. While all those elements which have been reported as producing congestion have their own rela- tive weights in the respective cities, the fact remains that they are considered quite as real and proportion- ately as serious in the smaller communities as in our metropolitan centers. Attention is called to the fad that there has been no attempt to analyze the cause factors referrod to as actual causes of vehicular traffic congestion. What is given here is merely explaniitory of the causes and accomjjanying comments as reported in this survey. These causes are believed to be of value, however, as part of the merchant viewpoint on traffic in his own business district. Relation of Automobile to Congestion It is the general opinion that the automol)ile is the one vehicle above all others that luis necessitated traffic regulations, numerous parking facilities, and streets with greater vehicle capacity. The automo- bile is considered the greatest development of twenty years, both economically and socially; but traffic au- thorities believe that if its fullest development is to be realized, it is necessarv not onlv to reduce its terrors but to provide better for its use. Some idea of how much of a ])roblem exists in ])ro- viding for the better use of the automobile in down- town business areiis was brought out in the present questionnaire survey. Merchants representing stores in the various groups of cities reported percentage estimates of the amount of their patronage using auto- mobiles. More than 50 jxr cent, of the total store pat- ronage was reported a- coming in automobiles by 13 per cent, of an unselected group of 120 stores in the Group I cities ; by IC per cent, of an unselected group of 124 stores in the Croup IF cities; by 30 per cent, of an unselected group of 240 stores in the Group III cities; and by 49 per cont. of an unselected group of 480 stores in the Group IV cities. These percentages may appear high. They are based on estimates which were reported in many cases to be opinions only; therefore, in justice to those mer- chants who reported them, they should be considered merely as indications of the actual amounts. How- ever, opinions have their value, for frequently it is necessary that policy involving capital expenditure be based on opinions. Since the amount of store patroiuige using auto- mobiles was reported as lai'ger in the smalhn* cities and conununitios, it is indicated that ])ersons owning auto- niobih's in the smaller comnnmitios use them for shop- jiing purposes to a greater degree than, tliose owning automo])ilos in the larger communities. Statistics have been com[)ilod recently which sliow that the number of automobiles ])er capita is greater in the smaller cities and rural connnunities than in metropolitan centers. The preceding percentages help to confirm that state- ment. It is interesting to note that as the proportion of faulty traiTic regulations, lack of parking facilities, narrow streets, and contiicting street cars increase, the amount of automol^ile j^atronago decreases. As Avas to be expected, the large cities sliowed traffic interference in greater degree than the snudlor cities, whereas auto- niol)ile i)atronago was of less import. The reverse is true of smaller cities, ])ossibly because of the greater freedom from trafhc difliculties. But, regardless of size of city, the problem has been report(»d as exist- ing proportionately, and tho fact apjioars that the mer- chant who makes every elTort to encourage people to visit retail areas and shoj) has a sound economic thought in mind when lie also makes an efTort to see that street conditions do not hinder those very people whom he has encouraged to come to his i)lace of busi- ness. Effects of Congestion on the Buying Public While interference resulting from traffic conges- tion may bo thought of in terms of j)ercentage losses to business, and while causes of congestion which bring about this interference mav be analvzed (and the auto- mobile may be considered the dominant factor in the whole problem), it is possible that tho'^e signs which j»roduce an adverse elTect upon the buying public may not be detected until those etfects have gained suffi- cient momentum to reacli a point beyond control. It is this *'etrect" evidence, however, that l)rings an ap- jireciation of the actual problem at each individual lo- cation. Danger Element Perhaps that eiTect of vehicular traflic congestion most thought of in any area is the personal hazard. The automobile, among oilier types of transixu'tation, has brought many hazards as well as many uses. Accord- ing to estimates made by the National Conference on Street and Highway Safety, about 8.") per cent, of tho accidents, fatal ami nonfatal, occurring during the years of 192.'{, 1J>24, and l!>2r), were incident to auto- mobile traffic. Aside from thos<* accidents incident to ordinarv street traffic in busin«'ss areas, there are acci- dents which may be attributed to emergency conditions. When a fire occurs, for exaniph', accidents of this na- ture are difficult to avoid in business areas if congestion of vehicular traffic already exists. Rut while accidents of all kinds are reporterl daily in large numbers, it may lie gratifying to the retailer to know that a survey cov- ering a number of cities in the 1 nited States found that not more than a general a\orage (tf 10 per cent, of all traftic accidents occur in business areas. It is claimed that with increasing attention to safety programs, which douV>tless will continue to re- ( Continued on Page 18) March 1, 1933 THE TOBACCO WORLD 53rd vear 15 JANUARY WITHDRAWALS DECLINE UK following comparative data of tax-paid products indicated by monthly sales of stamps are obtained from the statement of internal revenue collections for the month of January, 1933, and are issued l)y the Bureau. (Figures for Jan- uary, 1933, are sul)ject to revision until published in the annual report) : ProfJucis Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. Total — January — 19S2 20(3,017.640 5,191,617 67,520,082 3,719,778 474.392 342^923,509 296,640,206 17,497,320 253,700 8,622,222,367 3,033,446 24,752,091 1933 256,560,730 2,008,187 35,431,358 2,309,301 330,()30 Cigars (small) No. 27,851,587 (^igarettes (large) ...No. 354,100 Cigarettes (small) ...No. 8,962,787,103 SnufF, manufact 'd . . . . lbs. j^^f^'lJ^'ili^ Tobacca, manufact M. lbs. 27,274,3.)8 Notk: The above statement does not include tax- ])aid products from Puerto Kico and the PhilipT)ine Islands. This intV)rmation is shown in supplemental statement. Tax-paid Products from Puerto Rico for the Month of January — January — Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Total Cigarettes (large) ..No. Cigarettes (small) ..No 1932 3,068,410 108,000 283,500 1,000 1933 2,665,650 17,000 9,000 3.460,910 2,691,650 ~ 20,000 200,000 , ,^„..-.._ , ..., 188,400 Tax-paid Products from the Philippine Islands for the Month of January — January — Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. Total Cigarettes (large) ..No. Cigarettes (small) ..No. Tobacco, manufact'd.lbs. 1932 9,590,740 109,473 29,538 1,560 20 9,731,331 1*58,856 54 1933 8,777,655 63,797 16,338 526 61 8,858,377 312 431.080 20 Notk: Quantities of tax-painuii Tobacco, c he w i n g and smoking 4,8<6,;)29.63 4,488,8^.^^ Cigarette papers and 8161170 tul)es Io0,263.40 81,bU.: to tho lato ,2:reat Harry Hoiidiiii, America's famous mai^ieian. Manv of tho colobratod tricks and effects of con- juriiig and magic are hundreds of years ohl. As eacli great magician added some new improveni'Mit to tlie trick he told how he did it. "With each generation came a larger ]mblic. The explanations only seemed to whet the appetite for more. How Houdini Got His Name Many people have wondered about the origin of the unusual name of *' Houdini/' adopted by tlie great magician of our own age. It was because of his great admiration for Robert- Houdin. the brilliant French wizard of the nineteenth century, that Houdini took the name, meaning ^'Fiike Houdin" — the compliment of the gifted disciple to an older master. Robert-Houdin fascinated the public of his day with published accounts of his tricks . . . and Houdini has followed him in describing the most famous tricks of all time — the suspension, or 'Mevitation," mind read- ing, card tricks, the inexhaustible bottle, disappear- ances, Indian fakir tricks and mystifyincr escapes. Two of Houdini 's well-known books are **The Unmasking of Robert-Houdin," and ''Miracle Mongers and Their Methods — A Complete Expose." Among other moderns who have drawn back the curtain of mystery, and given us a glimpse of the inside workings of mairic show are Ottokar Fischer in his ''Illustrated Magic," Professor Hoffmann in his ''Mod- ern Magic," Evans with his "History of Coniuring and !Magic," and Albert A. Hopkins, whose "Magic Stage Illusions and Scientific Diversions" is a standard work. Howard Thurston, acknowledged the most brilliant performer of today, has written explanations of 400 tricks, manv of which the amateur can easilv learn to perform. " Magic Revealed in Camel Ads Current interest in magic has received new im- petus as a result of the new series of "Camel" cigar- ette advertisements which feature explanations of magic deceptions in order to bring out the thousrht that "Camel" cigarettes contain "Xo tricks . . . just cost- lier tobaccos in a matchless blend." The "Camel" ads are based on explanations |)ub- lished by the masricians themselves, according to the R. J. Re^Tiolds Tobacco Company. Professional magicians were consulted before the campaign was released. They took the view that "ex- posures" from within the profession have always created a new public following for ma eric. Hence a great many magicians have heartily endorsed the new cigarette campaign. With schools reporting great interest in magic among the children, magic shops doimr a flourishing business in magic apparatus, and publishers finding that sales of magic books are risinsr, the "Camel" ad- vertisements are likely to be credited with starting a new fad in entertainment. GENERAL TO TAKE ADDITIONAL WORKERS XCRKASEI) demand for the brands of the Gen- eral Cigar Comj)any, Incorporated, have neces- sitated ])lans for employm(»nt of more than one hundred additional workers in their Bing- liamton, X. Y., factory, according to an announcement by Kal])h G. Josephs, manager of that ])lant. Mr. J()sc])hs stated that "Pros])erity, at least so far as this (•onii)any is concerned, is not *just around the corner.' " "Despite the fact that we are now giving steady employment to more than one thousand persons at this factory, on a live-day week schedule, and are produc- ing more than two million cigars each week, we are unable to meet the demand for our ])rodnct. "Sales, since tlie reduction in ])rice last year, have reached nn])recedented and unl(K)ked-for j)roportions. We now lia\'e one Jinndreil and ten cigar-making ma- cliines in o])eration, each of which has a capacity of foni' thousand cigars daily. "AVitli a view to increasinir our ])roduction. to meet calls being made on the local factory by the com- ])any, we first considei-ed the ])lan of working tive and one half or six days a w<'ek, or of woiking tlie ])resent force overtime on the five-day-week schedule. "Wishing to co-operate with the nationwide 'spread-t he-work' movement, however, in conformity with suirgestions by Frank C Venner, of I. B. M., and Frank Cizek, of the Lackawanna Railroad, local chair- men of the movement, we decided to employ additional workers, "We feel, like Afr. Tenner and ^fr. Cizek, that it would be far better to give work to a number of per- sons who now are without any employment at all, than to ])lace the present force on an overtime basis. In conformity with this decision, we have decided to cm- ploy up to one hundred six additional workers." The l^intrhamton factory is the second largest fac- torv operated l)v the General Cigar Companv and was erected in 1J>28 at a cost of $500,000. WAITT & BOND DIVIDEND PASSED Last week Waitt & Bond, Inc., omitted the quar- terly dividend of 50 cents on the Class A stock due at this time. NEW "EDGE WORTH" CAMPAIGN "Kdgeworth" jiipe tobacco, manufactured by the Tijjrns k Brothers Company, is now being advertised in full-page spreads. Tin's is a general departure from the one-column af the ae th«' company is endeavoring to have pipe smokers test "Kdirewoith" with a new pipe, instead of a mix- inir of tlavois as wnuhl occur wei'e an oM pipe uselant is said to 1k> exlTemcly promising for the spring and summer mouths. IMPERIAL TOBACCO OF CANADA Tm])erial Tobacco Company of Canada, Limited, shows for 1932 net profit of $0,471,17.') after charges and taxes, e(piivalent after the (i i»er cent. ]»referred divi- dends to 53 cents a share on 9,4r)l,o:;2 shares of common slock, and compares with J^:),!a4,07!^ or 'u cents a com- iiion share in 1!).')1. . Directors of the company declar<'d an extra divi- dend of 17^-: cents a share on the $') par common stock, payable Mnvvh .*>lst to stockholders of record .March 1st. Tlie distribution is subject to approval of stockholders on March 14, 193:;, and i- to be ].aid in Canadian funds. SIR CUNLIFFE OWEN HERE ON VISIT Sir Hugo Cunlifl'e-Owen arrived in New York from London, on board the ''Kuropa" recently, and is now in Louisville, where he is ins]»ecting the plant and operations of the Brown .S: Williamson Tobacco Cor- poration. DRUG. INC., NETS $13,467,092 (Continued from Page 10) Cons(»rulated figure- for 1932 include assets and liabilities of a number of companies in which Drug, directlv or inolidating thes<' coin])anies i< relh'cted in a decrease in the balance sheet item *' Inveslments in affiliated and associated c(miimni»'s" and m other changes in assets and liabilities. There are necessary umiiiMimmM\vjj\M\mm^j^MiMMiM^ Classified Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-live cents (75c ) payable strictly \n advance. /8vir/«ir«vir?»ir)«xir)«tit»(»?tiMrt ity8\if?aviri>8vir/svir/s\i^r8vir/ati^t POSITION WANTED CIGAR FACTORY SUPERINTENDENT. MORE THAN 20 Years' Experience With One of the Largest Manufacturers. Hand work or automatic machines. Address Box 560, care of "The Tobacco World." FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE— No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD MANUFACTURING FIRM OF HAVANA QUALITY CIGARS will serve orders in any quantity to discounting dealers, at profitable prices. Satisfaction guaranteed. Address for particulars "Fair Dealing", Box 1168, Tampa, Fla. OUR HIGH-GRADE NON-EVAPORATINO CIGAR FLAVORS ^ ^ ^ Make tobacco meKo%v and smooth In character and Impart a most palatable flavor OAYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. ABOMATIZEE, BOX FLAVORS. PASTE SWEETENEIS FRIES Si BRO.. 92 Reade Street. New York j iiU'iTascs in fixed assets ami liabilities as represented hv cmtstandins: securities of such companies now con- >nli(lated for the first time. Marketable securities are carried at ([uoted values on l)ecem])er 31, 1932, and all transaclions in foreii^n exclianle influence on the market for those grades. The decreased purchase of low grades may be attributed largely to the fact that the Kegie has been able to obtain sul)stitute types from several other sources (such as Kio Grande ch) Sul, Buliraria, Ku- mania, Java, Algeria, and otiier countries) at extremely low prices. However, the increased demands for bet- ter grades of Maryland which are being employed in high class cigarettes are to a great extent compensat- ing for the decreased demands for low grades. In spite of the more favorable economic conditions in France (as compared with many countries) there was a slight decline in consumption of tobacco prod- ucts in 1932, which may 1)0 attriliuted in part to the de- creased tourist traflfic. The operations of the Regie, however, aie profitable and much ingenuity is ])eing employed in developing blends to satisfy the tastes of the consumer and to improve the system of distribu- tion. The brands of American blended cigarettes are meeting with success which augurs well for increasing purchases of Burley, bright flue-cured and the better grades of Maryland tobacco. ASKS F. T. C. PROBE OF CIGARETTE CUT EDEKAL TRADE COMMISSION investi- gation of four tobacco companies which re- cently reduced the price of their cigarettes at the same time was proposed in a resolution introduced in Washington on February 22d by Repre- sentative Celler, Democrat, of New York. The comi)anies lie iiamed were the American To- bacco (^ompany, the P. Lorillard Comi)any, the R. J. Reynolds Tobacco Company and the Liggett & Myers Tobacco Company. These, his resolution said, reduced the price of their cigarettes from $0.85 to $5.50 a thou- sand "solely for the ])uipose of ruining certain inde- l)endent manufacturers of so-called 10-cent brands of cigarettes." The manufacturers of ** independent brands," the resolution continued, "taking advantage of low tobacco ])rices, have brought the ])ric(» of cigarettes within the depressed state of prands *'any agreement, understanding, collusion or convention that iiilluenced the action in fixing the decreased price in vio- lation of law; and also to determine the relation that exists between the afon-said ])roducers of cigarettes and the Atlantic and Pacific Tea Conii^any." PEPER TOBACCO COMPANY EIGHTY YEARS OLD According to an announcement by the Christian Peper Tobacco Comjiany, of St. Louis, Mo., that com- pany has recently passed its eightieth birthday anni- versary. The announcement states: *'As far as we have been able to learn from Government records, w^e are the oldest independent tobacco manufacturers in the United States. This enviable record has only been achieved by always giving qualitv the first considera- tion." The Christian Peper Tobacco Company manufac- tures "Listerine" cigarettes, ''Wellington" smoking tobacco, and other well-known high-grade tobacco products. CUBAN CONSUMPTION DECLINES The consumption of cigars, cigarettes and cut to- bacco in Cuba during 19.32, as per data given by the Government based on the sale of stamps and published by the Comisioii Nacional de Proi)aganda del Tabaco, is as follows, in comparison with 19.31: Cigars, 61,570,- 900 in 19.32 and 93,111,951 in 1931; cigarettes, 178,076,- \)?A in 1932 and 308,968,550 in liKU; cut tobacco, 214,500 pounds in 1932 and 2H(;,078 pounds in 1931. These quantities show a decrease in consumption as follows: (*igars, 33.9 per cent.; cigarettes, 42.2 per cent, and cut tobacco, 25 per cent. RETAIL STORE PROBLEMS {Continued from page 14) duce the numlier of street and highway accidents caused by traffic of all kinds, not only will there be less loss of life but less avoidable of those areas now thought of as danger zones. If this is true, any effort on the part of business to make safe and to keep safe all streets in retail business areas indicates not only an admirable purpose from the humanitarian point of view, but economic wisdom as well. Streets crowded with vehicular traffic should not be synonymous with danger. L' BRAINY 9t EC E I VE P mm %j^ 9bifM\mi. a( AfHa&ri CIGARS CIGARS P. LORILLARD GO'S 2 ^^^ 5^ Cigars These brands formerly sold at 5c each . . . now reduced to fit today's purse . . . automatic machines offer A NEW RETAIL OUTLET for TOBACCO PRODUCTS Get all the facts now on automatic merchandizing. Write for a sample copy THE AUTOMATIC AGE 2810 S. Michigan Avenue Chicago Illinois «« »■ ■■ ■■ EstahiiiheJ 1886 €i BEST OF THE BEST" NEW C L R R K N C C 1 G .\ R S 2 for 5c ^^^^;^i^i^±^ A. SANTAELLA & CO. Office, 1181 Broadway. New York City FACTORIES- Tampa and Kev West, Florida (To be continued) PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA., PA. After all "nothing satisfiej like a good cigar WOODEN BOXES Are the Only Natural Humidor for Cigars. Pack your cigars in wooden boxes and preserve their delicate aroma, mellowness and flavor right up to the time they are passed over the counter to the customer. Discriminating cigar smokers prefer to select their favorite brand from a wooden box— and it's good business to cater to the dealer and con- sumer by packing your cigars in wooden boxes. WHEN BUYING CIGARS Remember that RcRardleis cf Pnc THE BEST CIGARS ARE PACSED I> WOODEN BOXES I */>^»>jiv*>'i-w,'^^>av«^jL^ *Jl';9JA\>9Ji\mi\m'^J'.^J'r'^'liV^i^''^-^A''^'i^^^^ Volume 53 THE TOBACCO WORLD Number 6 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, MARCH 15, 1933 Foreign $3.50 UE to the sudden illness of the responsible edi- tor, this issue of The Tobacco World has been hastily prepared by ** pinch-hitters" who plead guilty in advance to the readers and adver- tisers for all mistakes not directly chargeable to the printer. We are just going to do the best we can and we hope you will be lenient, as we confidently expect to be fired anyhow just as soon as the editor sees this number. C^ Cj3 CJ3 XASMUCH as the collaborating eaitors may never get the opportunity again they have de- cided to have an editorial holiday and get as much as possible off their chests before the editor catches up with them. Therefore tliey l)eg agam the indulgence of their readers. And just between our- selves, to paraphrase a well-known statement, '*NVe have long sought this opportunity." CJ3 Ct3 Ct3 KRF/S something to write about— the Bank Holi- day. It has been very inconvenient and uncom- fortable for most ot" us, but to 1k3 perfectly frank about it we think that both bankers and business have had this dose of castor oil coming to them for some time. Furthermore, we think that most of us are going to get well, although the period of convales- cence will undoubtedly vary according to the condition of the patient when Mussolini's favorite cleanser was administered. We've got that out of our system, any- how. Cj3 Ct3 CJ3 RADIO announcer brought to the attention of the listeners the other night the fact that many y of the s])lendid programs were entirely due to the advertisers who sponsor them. We were just wondering as we looked through con- temporarv tobacco trade journals, if the advertisers ever stopped to think that after all these publications are for the great part what the advertisers make them. It was commonly reported some few years back that one of our greatest financiers stated in the course of a personal conversation that he would rather own certain outstanding trade publications than be presi- dent of a bank. A trade publication becomes a power for good in relation to its advertising support. Trade paper ad- vertising which has the earmarks of something thrown to the dogs to keep them quiet hurts the trade paper. To get the most out of trade paper advertising the copy should flatter the trade to the extent of at least making the readers think that it is written especially for them; to make them better merchants and to help them sell more merchandise; to hold their interest and to assure them that the advertisement is a personal message specifically directed to their attention. It there is a feeling that business papers in certain fields are not doing the job to the advertiser's satisfac- tion, the blame does not belong entirely on the shoulders of the editorial department. The advertiser might well consider that he too has some obligation to those mer- chants who are selling his products. So long as the readers of business papers are fed consumer copy, which in most cases has already had national circulation, the advertiser cannot expect any tangible reaction from it. Trade paper advertising should be directed specifically to the trade, and when that is done the trade papers will be on their way to larger circulation and greater infiuence. Cj3 Cj3 Ct] XD this affords an opportunity to project some thoughts on radio advertising. It's just a per- sonal viewpoint which a friend stirred up sev- eral weeks ago. So many i^ople have **yessed" us since we began discussing it that we almost believe we have a good peg on which to hang a few paragraphs. For some weeks we have been very much annoyed bv a continual shortage of postage stamps in the home writing desk. A few days ago in looking over the mail we came upon a large envelope addressed to our eleven- year-old daughter. We were curious to see what it was all about and opened the package. It was a handsomely illustrated fortv-cight-page pamphlet advertising a month's cruise to EuroiK? for $30(>— and up ! It sort of jarred us, as we have had difficulty recently in finding Iwentv cents in cash to get to Philadeli)hia. AVe immediately took the matter up with the lady responsible for the conduct of household affairs and we were informed that the young miss received more mail in a week than all the rest of the family, which numbers 53rd year THE TOBACCO WORLD March 15, 1933 seven. Due to our crabby nature, we were gently told, it had been deemed inadvisable to explain to us the matter of missing postage stamps. Upon investigation we found that the party of the first part had a cache of literature, including pictures of radio artists, sufficient to operate the furnace at top temperature for at least a day. And in addition, food products, and samples of almost everything olTered over the radio. AVe feel sure the family could have sur- vived for a day on her samples of food products. We found no samples of cigars, however. You mav also be sure that in the future radio ad- ft vertisers will be short at least one answer to the request to ''write to the advertiser or to the station to which you are listening." Before we plunge into the main stream, just one more word. After a star-chamlxM' session we extracted the information that the idea of answi^ring radio re- quests was a general practice with our daughter's class- mates, and she saw nothing wrong in also building up a library of literature, samples, etc. Now, we are not saying tliat some good will has not been created for some products as a result of our daugh- ter's activity, or that these samples and i)ieces of litera- ture have not created future sales. But we do say that at this particular time it ])uilt a large fire under us to find that a member of the family had been writing for literature and information on a trip to Europe. All of which brings us to the i)c)int as to just what the advertisers on the radio can definitely prove in direct sales as a result of their activity on the air. We are voicing a personal oi)inion again when we say that most of our friends, all of wliom we rank as average and intelligent citizens, agrei* that the advertis- ing chatter seems to l)e only a question of how many words about a product can be delivered intelligibly in the seconds allotted for that ])uri)ose. To turn on al- most any station on the air today at the (piarter-hour interval reminds us of nothing so much as listening to the ''barkers "-on a circus "midway." Just this Saturday night, as we are writing, we tried to tune in our favorite non-advertising program and suddenly realized that it was not on the air on Sat- urday nights. But we did pick up a ]irogram dedicated to advertisers on a certain chain. Wc also listened to an announcement of the wonderful treats in store for us in the coming week sponsored l>y the chain and its advertisers. We think we smell the odor of ])urning rubber. So far as we are concerned, we are perfectly willing to pay a tax for the use of a radio set provided we are guaran- teed pure entertainment. We believe that the magazines, newspapers and trade i)apers are entirely comj)etent to carry advertis- ing and sell merchandise. And we are further of the opinion that so far as advertising programs are con- cerned the talent gets far more advertising than the product sponsoring it. It is easily «'stablished that a vast number of the radio audienc*' who enjoy certain programs, while entirely familiar with the entertainers, cannot tell what product or ]»roducts it advertises. And incidentally, if it can't Ik* accomplished in any other way, the time is not far (li>tant when there is going to be an uprising against the crime and murder stories on the air. An true. A clipping from the Montreal Herald reports tliat the now highly i>opular fag was invented bv an Egyptian soldier in 1832, or 101 years ago. The story relates that, as a reward for success- fully storming the Syrian fortress of St. Jean d'Arc, the Egj'ptian viceroy presented Il)rahim Pasha with a wagonload of tobacco and piix^s. But before the wagon reached Pasha's head(iuarters, it was struck bv an enemy grenade, and the pipes were all smashed. Not to be deprived of a smoke, a passing Egyptian soldier made a tul)e out of Indian i>aper used for wrapping up powder, and i)acked it with some of the tobacco. He lighted it and found it good. Soon all the troopers were puffing at the new-fangled smoke. Cj3 Cj3 Cj3 i:WS that Schulte had followed the A. & P. lead in the ten-cent price for the "Big Four" })rands of cigarettes prompts the office philos- opher to wonder whether there is any longer any sense in the old (luatrain: "Count that day lost. Whose low descending sun Sees products sold for less than cost And business done for fun." Hugh Chalmers, who earn<'d the title of Master Salesman when he was in charg<' of sales for National Cash Register Company in its early days, used that rhyme frequently to discourage merchants in many lines from acting as an intermediary without profit. He carried it along wnth him when he became presi- dent of the automobile manufacturing company bear- ing his name, and quoted it to show dealers the folly of giving away their profit in an over allowance on a trade in. March 15, 1933 Say You Saw It in The Tobacco World 53rd year Jottings About People Who Are Doing Things yi ■— All officers and directors of the Consolidated Cigar Cori:>oration were re-elected at the annual meeting of stockholders on March 6th. "Thev sav" (oh, yeah?) that the "George W. Childs" cigar may ])ecorne a 2-for-5 seller. Meanwhile we are intent Iv watching the cigar withdrawal figures. Webster-Eisenlohr extended a helping hand to their jobbers by giving an additional thirty days' credit during the bank holiday. It is reminiscent of the gen- erous policy, in times of trouble, of the firm of Otto P^isenlohr & Brothers of twenty years ago. Beisel-Wemmer-Gilbert Corporation report a net profit, after all deductions, equivalent to 85 cents a share on the outstanding $10 par shares of common. It took smart business management to pull out a profit in the cigar business in 1932. Here's more 1932 profits. The Reynolds Metal Comi)anv reports a profit equal to $1.41 a share on the common! This was figured, however, l)efore they wrote off a loss of more than $276,000 on an exchange of secu- rities. The "Optimo" account in Chicago has l>een shifted to Oershunv & Epstein. This is a very active firm, and an equallv 'active brand, which indicates that A. San- taella & Com])anv are going to find a step-up in their Chicago sales. We can see Mariano Alvarez smdmg. Mazer-rro5!sman*s **Tom Keene" cigar is now selling at 2 for 5 cents. This is a former popular nickel seller and the dealers who are featuring the brand re- port that the new price has stimulated sales to a very noticeable degree. Tom Morgan, of the Morgan Cigar Company, is out on the road trving to increase sales on the factory's brands. We have an idea that Tom will find that his personal appearance will have a stimulating effect in the territorv which he is now covering. Incidentally he makes some mighty fine cigars down in Tampa. \medee Levie, ambassador for the "Habanello" brand, made in the substantial city of Philadelphia, which is known for its good cigars, is right on the nob in the Middle West spreading the news about George Zit- ferblatt & Company's ])opiilar product. M Goldberg is again on the trail for orders for tlH' ^\Tohn Buskin" cigar, made by I. Lewis & Company in Newark X .1. This well-known brand is no stranger to Ah, as he has sold it before. His old friends are giving him a hearty welcome. Down in Paulsboro, N. J., C. neri)ert Harris, the popular retailer and .jobber, reports a good reception for a new 2-for-5 cents brand made in Wheeling. He reports that since the "Big Four" dropped prices on their cigarettes there has been a considerable pick-up on these brands. Manuel Corral is back in Tampa again after spend- ing some time in Havana where he was on a tobacco purchasing expedition. The reason "Bering" cigars are always uniform is Iwcause Mr. Corral is a grand judge of C^iban tobacco, as anyone who smokes Corral, Wodiska v Ca brands will testify. Dick Bythiner, of E. Bosenwald & Company, New York City, arrived in Havana last week. All of which reminds iis that Dick came from Philadelphia and that many years ago his late father was a prominent leaf tobacco broker with offices on Arch Street. Nat Simon, well known among Xew York midtown retailers, is now an active member of the sales staff of the Consolidated Cigar Corporation, and is in New England, promoting the "Harvester" brand. Robert Woolsey, of the famous movie team, Wheeler and WoolseV, smoked 500 "R. G. Dun" cigars during the filming of the talkie, "So This Is Africa." A nation populated by Bob Woolseys would be the cigar manufacturers' idea of Utopia. Sam Fisher and Clark Cutler motored from Chicago to Tampa, closed a deal with the Garcia- Havana Cigar Company for a large slice of territory on "Champ Clark" cigars, and went on the free-wheel- ing way. Not so slow for a couple of so-called "old timers." At a time when it was the work of a prestidigitator to make up a payroll at all, an armed man held up the manager of the'Finley Wholesale Tobacco Company, Buffalo, and swiped the week's payroll. We nominate him as the world's meanest guy. Michael N. Kennedy, in whose Kalamazoo, Mich., cigar store the Kennedy Debating Club has thrived for thirtv vears, has sofd his business to Oscar Bom, formerlv o'f Flint, Mich. Thus a new exclusive cigar and tobacco dealer, one of the few remaining in the country, is Born. Prominent among the trade visitors in Havana last week were several executives of the General Cigar Compaiiv, New York, including B. G. Meyer, vice-presi- dent; Richard C Bondy, second vice-president in charge of manufacturing; Charles M. Gans, general manager of the Porto Rican Department, and Ben WoU'ner. The Garcia v Vega factory, Tampa, Florida, cele- brated the *'Xew Deal" inauguration by closing nego- tiations for a "Xew Deal" in the shaiH' of a new dis- tributor in Washington, according to Ben Lumley. Bon returned from the capital city last week to check in at John Wagner & Sons, ])rei)aratory to a swing around the South Jersev circuit in the interest of "Garcia y Vega" and the "Dulce" and "Verdi" brands of the F. W. Sommerfeld Cigar Company, Miami, Florida. 53rd year THE TOBACCO WORLD March 15, 1933 NEW PACKING OF "BRIGGS" FOR Y. & M. Rapidly growing? popularity of *'Briggs," the new high-quality smoking tobacco distributed by Yahn & McDonnell,' has prompted the manufacturers, the P. Lorillard C^ompany, to bring it out in two new pack- ages— an eight-ounce tin retailing at sixty-five cents, and a sixteen-ounce tin listed at $1.30. John Papero, of Yahn & McDonnell, wlio announced these additional sizes, added that the popular sixteen-ounce wooden keg of ''Briggs," retailing at $1.50, will be continued in the line. BAYUK CIGARS SPREAD CONFIDENCE Immediately upon publication of the President's proclamation declaring the bank holiday, Bayuk Cigars, Incorporated, sent the following message to its sales- men throughout the country: **In the temporary trial of your courage yon mtist have faith in your country, your job and yourself. Business will continue to l>e done in America and cigars will continue to be manufactured, sold and smoked, and now is not the time for fear but for us as salesmen to be aggressive and spread the gospel of confidence. Your company is back of you to the limit with increasing pro- duction by the manufacturing department and no cur- tailment of expenditure in advertising. Bayuk will con- tinue full speed ahead." GEORGE ZIFFERBLATT BACK FROM TRIP It's like getting a metaphorical shot of optimism to talk these days with (Jeorge Zifferblatt, head of the companv manufacturing the deservedly popular *'Hab- anello.'' Just back from an extended trip through the West, he expresses complete satisfaction witli the or- ders his factory is getting in the face of present con- ditions, and is especially well ])leased with the fine spirit of co-operation manifested ])y many of the "Ilab- anello" distributors throughout the country, following the temporary inconvenience caused by difficulties of two banks in which the Zifferblatt company carried accounts. "TOBACCO WORLD" EDITOR ILL Gerald B. Hankins, editor of The Tobacco World, is seriously ill at his home in ( ollingswood, N. J. He was taken' with influenza on Wednesday last and is suffering from that and other complications. Trade Notes A. Jos. Newman, vice-president and general sales. manager of Bayuk Cigars, Incorporated, is on a ten-day trip through the Middle West. Joe Wilson, formerly a salesman for the Cortez ^ar Company, is now covering the South Philadelphia territorv for '*Bavuk Phdlies." Tony Guiterez, of A. Guiterez & Company, Passaic, New Jersey, manufacturers of ** Carlton" cigars, vis- ited Yahn & .McDonnell, distributors, last week. The bank holiday meant nothing, apparently, in the life of Frank Swick, who kept on the jump in Philadelphia last week, promoting *'Chukkers" cigar- ettes for the Health Cigar Company. The *^Monticello" trio of smoking tobacco, cigars and cigarettes, named after the historic residence of Thomas Jefferson in Virginia, and distributed by John Wagner & Sons, Philadelphia, are making gratifying headway. Abe Caro, the optimistic ** Optimo" representa- tive, did not let a little thing like the bank holiday deter him from making his regular promotional tour of the territory of Yahn & McDonnell, local distributors of the brand. The intensive work of B. C. Jessa, of the Heine Tobacco Company, Masillon, Ohio, during the last sev- eral weeks among retailers and consumers has resulted in quite a few placements on ** Heine's Blend," ac- cording to John l*apero, of Yahn & McDonnell, who were recently appointed sole distributors of the brand in this territory. Commenting on the fine attitude of the tobacco trade in its loyal support of the President in this pseudo-wartime emergency, I. B. White, of John Wag- ner & Sons, said that ever>'one with whom he talked, regardless of political affiliations, agreed that the up- turn to brighter days will be dated from the present crisis, with its drastic regulations and history making proclamations. March 15, 1933 THE TOBACCO WORLD 53rd year PRESIDENT ROOSEVELT'S BEER MESSAGE *'/ recommend to the Congress the passage of legislation for tJie immediate modification of the Volstead act, in order to legalize the manu- facture and sale of beer and other beverages of such alcoholic content as is permissible under the Constitution; and to provide through such manufacture and sale, by substantial taxes, a proper and much needed revenue for the Gov- ernment, "/ deem action at this time to be of the h ighest importance. ' ' KKSIDENT ROOSErELT'S message for the legalization of beer has i'lectrifiod the country, and coming so soon after his induction into office, must convince the citizens that the Chief Executive intends to kiH'p his canii»aign i)ledges. This message of seveiity-two words, said to be the shortest on record, will imt heart in llie people and inspire confidence throughout the business world. By ordering the immediate restoration of beer the President has done more to increase rigar smoking than tlie industry itself has done within the last fifteen years. ^ . , . , A cigar goes with a glass of l)eer. It is a leisurely smoke for a leisurelv drink. It is an essential part of the old familiar picture of tlie group of friends gath- ered in social intercourse ''with a stein on the table. While the Anti-Saloon League was running past administrations, thev popularized the high-])owered liquors, none of which had any particular afiinity for cigar smoking. But a eigar with be<'r is anotlier matter. When the prohibition law went into effect there was no immediate refiection in eigar withdrawals, but the gradual closing up of tliou>ands of small cigar factories undoubtedly lias been due to the elimination of those places where l)eer was sold. Many cigar manufacturers lived almost entirely from the'sale of their cigars in eafes and other places licensed to sell beer. In the cities, cigars sold in the neighborhood thirst dispensary weii' manutactnred in that neighborhood. The cigar nianutacturer knew most of the patrons and passed his cigars out treely. And aside from the places in tin* center ot the city, there were seldom more than one or two brands handled and they wen* usually furnished by some small manufacturer. To our mind President Hoosevclt "s message should result in an immediate expansion of the market for cigars Evi'rvone, from the leaf tobacco merclmnt right on up the lim- to the jobber, and including manu- facturers of mechanical facilitating d<'vices, should note a (luickening of the pulse of the cigar industry, and those who are prepared to take immediate ad- vantage of this action of the President to stimulate business should reap substantial returns. In this connection the tobacco industry is in an enviable position due to the fact that there has been but a slight decrease in its national advertising. In the face of great odds it has fought to maintain its goodwill, and probably has succeeded to a greater extent than any other product excepting only foods. As we see it, the cigar industry has a greater op- portunity to regain its prestige wdth the legalizing of l)eer than any other commodity outside of the beverage itself. Now is the time for cigar manufacturers to revive their old trade outlets, to get their brands before the jobbers, to do a 100 \>gt cent, job in this respect, w'hich means, of course, to call on the well-proven services of the industry's business papers. Those who have been crying for beer these long woarv years will have their sincerity put to the test. The long list of allied industries that will be called ui)on to greatly increase employment with the reopen- ing of the breweries, will put pay envelopes in the pockets of thousands who have been waiting these many months for an opportunity to go to work. This money will not he hoarded. Debts will be paid and the many wanted articles which many fam- i^N^s have been forced to deny themselves because of the economic condition will find cash purchasers tliroughout the land. It is our thought that new blood will flow^ in the arteries of business. We have Ixien ill too long for the reaction to be felt immediately, but we do believe that the nation will be gradually revitalized by the spirited action of the new administration. So the tobacco industry should hail this new phase of the "New Deal" not only with the unselfish feeling tliat tlu' return of beer will show immediate tangible returns in the form of huge revenue to the Govern- ment, a highlv i)erceptible relief of unemployment, a much-needed psvchological change in the temper of the ])eople, a switch from hy]X)crisy to sincere good f4.llowship, and a general restoration of prosperity, but also with the justifiably selfish feeling that the cigar will stage a simultaneous comeback. Here's to the better coming days, whose emblem is a delicious glass of beer, a plate of pretzels and a good cigar. Prosit ! GERMANY BARTERS FOR TOBACCO Bartering on a big scale is reported in the news that (lermanv has offered Bulgaria railway material and apparatus in exchange for tobacco, and that the offer has been accepted by the Bulgarian government It is stated that the merchandise to be exchanged is estimated at one thousand million levas, or the equivalent of $7,200,000 at the present rate of ex- change. 8 53rd year THE TOBACCO WORLD March 15, 1933 From Congress 'AND Ft D E R A L Departments aiiUJU From our M^ashington Bureau 62ZAlbe£ Buiioing PEEDY enactment bv Cons?ress of President Roosevelt's emergency banking legislation on March 9th is expected to care for the financial emergency wliich made its appearance March 3d and necessitated the declaration of a national bank holiday as the lirst official action of the new adminis- tration. Continuing the emergency powers assumed by President Roosevelt in liis original proclamation, while paving the way for the reopening of sound banks and for the conservation of the resources of weaker or- ganizations, the legislation is expected to bridge the gap until Congress can deal with the pennanent measures later to Ir* asked by the President. Party lines were cast aside in both houses of Congress in order that the new executive might have united support in his efforts to bring the tinancial structure of the country out of the chaos into which it was thrown ])y the rai)id deterioration of the credit situation following the declaration of the first of the state bank holitlays, in Michigan. The emergency banking ))ill is declared by financial experts to* be a sound, conservative measure which does-not permit Federal credit to be squandered to maintain the value of banking assets at an inflated lev^el. It provides for the distribution of new money on a rigidly controlled basis; as much as eleven billion dollars can be thrown into circulation if necessary, it w^as asserted, but it is not expected that more than two or three billions will be required. The plan is intended to complete the work of de- flation in the banking field and to assist an orderly process of liquidation of insolvent institutions. Some difficulties are expected to be encountered in its ad- ministration in some areas where there is a lack of local banking facilities, but the measure is considered an indispensable preliminary to the constructive work of rebuilding our banking structure. Permanent banking legislation, it is expected, will be recommended to Congress some time next month, after settlement of the present crisis gives administra- tion leaders an opportunity to consider the many plans which have been suggested. [t3 Ct3 Cj3 Development by business men and business or- ganizations of a definite plan of co-operation with the new administration was urged this month by Secre- tary' of Commerce Roy 1). Chapin as he prepared to surrender his office to his successor, Daniel C. Roper. **The business of the country, which has been halt- ing in its stride this winter, faces a month of great significance," Mr. Chapin declared. **A new adminis- tration takes charge, and with it are bound to come certain changes in policies. All are hopeful that they will be constructive and fruitful of results, and such a program will receive every aid and support. '*We are involved in an economic struggle, per- haps more vital to our nation than was the great world war in wliich we fought fifteen years ago. Never has there been a time when business men should rally their energies and brains along united policies more than right now." A program of co-operation with the new adminis- tration, he declared, should embrace exi)ort as well as domestic trade, the former being of extreme imi>or- tance in the return of prosperity to many industries. Bankruptcy relief for corporations is left to the special session of Congress as a result of the action of the House of Representatives on March 1st in accept- ing the Senate draft of the bankruptcy bill in order that relief might be alTorded to some debtors, at least, without further delay. The measure linally approved by Congress pro- vides for the extension and composition of the indebt- edness of individuals and farmers and for railroad reorganization. As originally written by the House, it also included provisions for the reorganization of corporations unable to meet their debts as they ma- tured, which were eliminated by the Senate. Rather than subject the measure to possible fail- ure by insisting upon the inclusion of corporation re- lief, the House accepted the Senate bill. Under the terms of the new law, relief is to be afforded individual and farmer debtors by agreements, under proper court supervision, for extensions and compositions. Delinquent railroads are to be reorgan- ized under the supervision of the Interstate Commerce Commission. The whole purpose of the legislation was to pre- vent the waste of assets of going concerns usual to • liquidations in bankruptcy, in which corporation re- organization was an important feature. It is expected, however, that this will be one of the matters to come up early during the special session. Cj3 Ct3 (53 Industrial strangulation faces the United States as a result of the rapidly increasing hold of the banks upon corporation activity, according to Senator George Norris of Nebraska. Addressing the Senate on **the spider w^eb of Wall Street," the Senator named eight leading banks in New York which he declared have 840 directorships in manufacturing companies, 585 in transportation con- (Continued on Page 16) March 15, 1933 THE TOBACCO WORLD 53rd year ILLUSIONt Right before your very eyes the man of magic draws rabbits, vegetables, flow- ers, fruits — even babies — all from an empty tub ! What an astonishing fellow he i> : IXPLANATION: The assorted rabbits, babies, carrots, cabbages, ribbons and other magical "props" are not created by magic. The tub has a false bottom that is conveni- ently displaced, and numberless won- derful things spring to life in the magi- cian's nimble fingers. They do literally "spring" because they are made to com- press into very little space at the bottom of the tub, taking their natural shape as the magician lifts them out. Source : " Tricks and Illusions" by H'ill Goldston. E. P. Dutton & Co. /t's Fl/N TO B£ J^OOZED ,.,JT*S MOUE TUJVTO I^OW Tricks «re leftftimate on the stafle but not in business. Here's one that has been used in cigarette advertising . . . the illusion that blending is everything in • cigarette. IXPLANATION: Blending is important . . . but it makes a lot of difference what is blended. Inferior, raw tobaccos can be blended to cover up their humble origin. But your taste soon detects the trick. The proper use of blending is to bring out the full "round" flavor of mild, high-grade tobaccos. It's the cost- liness of the tobaccos, as well as the blending, that counts. I^P" It is a fact, well known by leaf tobacco experts/ that Camels are made from finer, MORE EXPENSIVE tobaccos than any other popular brand. Hundreds of thousands of dollars have been spent by others in the attempt to discover just how Camels are blended. The blend is important. But all the while Camel spends mil- lions more for choice tobaccos ... to in- sure your enjoyment. Light up a Camel. Relax, while the delicate blue smoke floats about you. Enjoy to the full the pleasure that comes from costlier tobaccos. Keep Camels always handy ... in the famous air-tight, welded Humidor Pack that assures you cigarettes that are fresh, cool, prime. NO TRICKS • • f^ JUST COSTLIER TOBACCOS IN A MATCHLESS SLINO 10 53rd year THE TOBACCO WORLD IMarch 15, 1933 Food and Tobacco — Two Necessities of Life That Have Not Stopped Their Advertising. •■•^-•Ma^Mfaa^Wi^^*'- »«■ >■ ■■ ■■ ■■ ■■ ■■ ■■ ■» — — «iness than would have sei^med ])ossible a couple of weeks ago. During the last few days prices have shown a deciiU'd tendency to rise, as Priiifrr\'i Ink has established from a number of sources. This is in no sense intiation; it is rather a re-establisliment of normal value's. "It means a restoration of pi'otits — something with which many julvertisers luive not been in such close touch during the last few weeks. *'I*eoi)le are going to buy more on a rising market. This is basic and evervbodv knows it. • ft "From a stan(lj)oint f>f cunent sales, th<'n. as well as the vastly more important piocess (»f creating and maintaining consumer acceptance that will pay its main dividends in the future, all the arguments call for a continuance of advert isinir at this time. "If there is a thing in this piinciph' of adveitising continuity, national advertisers would do well now In follow the lead of local advertisers and get busv in earnest." There is a lot more to the editorial, particularly in the matter of condi*mning national ad\ertisers for can- celling a])pi*opriations not only in the crisis thiough wliich we are now passing, but over the last thrtH' years. That is an accusation which cannot be leveled against national advertisers in Uu' tobacco classilica- tion, as is evidenced liy a icport in a recent issue of Editor ami Pithlislwr, trade j»aper of the news|)a]»er business, that publishers are "apjuwhensive that the price war l>etween the 'Big Four' on the one hand and the non-advertised ten-cent })rands on the oth<*r would mean a slash in the amount of cigarette advertising." Such a slash would mean a real bodv blow to news- l>apei" publishers, whose income from national advertis- ing has tlwindled down to what they have l)een getting fi'om the food and tobacco classitications. To be sure, tliere has ri'nmined a spi-inkling of gasoline and oil schedules, but the automotive re})resentation, which once dominated the national advertising lield, has prac- tically disappeared during the last three years, along with the radio, wjishing machines, drugs, cosmetics and the twenty otlier national advertising divisions listetl bv " Media Kecoids." * Food and tobacco alone ha\-e remained through the depression. Food anil tobacco — is there any special signiiicance ill that connotati(Mi ? We think there is. We think that food and tobacco advertising have not dropped off in linage to the extent of other advertised products for the simple reason thai food and tobacco consumption have not dinnnished to anything like the extent of those other products. We think, further, that the reason for this much smaller decreast^ in food and tobacco sab's lies in the obvious, but highly important, fact that food and to- bacco are accepted today on an almost equal plane as necessities (»f life. The automobile pt'opje have been saying for years that life's necessities in (»ne, two, three order are food, shelter, and transportation, and they argued that peo- ple must buy, and continue to buy, motor cars. Have they continued to buy in tin* last three years? Not so Mr. Sloan or Mr. Ford or Mr. Chrysler could notice it. Sah's in units in VXVl were just 30 per cent, of the sales in V.yi\) — a 70 i)er cent, drop — ami the drop in money value was just too distressing to tigure. No, the |H»ople didn't ccuitinue to buy; they didn't switch from the high-jiriced cars to the lower-priced models. Thev just didn't buv uuv kind of an auto- mobib*. So it wa^ with jewelrv, furniture, candv and anv 'lumbei' of otlier desiiable prinlucts whose manufac- tureis fondl\ hop«'d for som<' degree of business, no matter how unfavorable ccuiditions might become. In -ome of these lines business came to a standstill, giving th<' men in the industries atTected megrims of a \\vm\- Kplitting character unkn<»wn to those in the tobacco in- dustry. Not that toba<-co people lia\'e not had their shar<' of headaches; on the contrary, tobacco nu'U have suf- ' fe?"ed .IN they ne\er i'Xpected to >utTei'; they have been takinir it on the chin, but thev have shown that their xcry pi(Mluct — tobacco^ — h«*lps them to "take it" with a >mih', whethei- that tobacco is in tin' form of a cigarette, a cigar, a pipeload, a wad in the cheek oi* even a pinch of ^nutT. Just as it has helped men in its own industry to Ix'jir their troubles, so tobacco has Imh-u helpful during the depr<'ssion to all others -rich and poor — highbrow and mly couldn't get along without to- bacco. In fact* tobacco helped them along. It is true that they economized as far as they could. The smoker of the expensive cigarette s\yitched to a cheaper brand or got into the habit of hitting the pipe—but he didn't stop smoking. The smoker of one of the standard brands of cigarettes tried to tide hmi- self over with one of the so-called depression fags — but he didn't stop smoking. And so it has In^eu with the cigar smoker, the pipe smoker, the chewer, the user of snulT. As we have said, the net decrease in the consumption of tobacco has been comparable only with the net decrease in the consum])tion of food. A lot of hullabaloo has been raised— and quite properly, too — over the action of The Great Atlantic and Pacific Tea Company, to give the culprit liis full title, in establishing a cut-rate cigarette price which it would be suicidal for retail tobacconists to match. That is a business situation which must be remedied, and it is a pleasure to report that steps are being taken towards that end. Yet, lamentable as it is in its effect on the owner of the corner cigar store, we must not be entirely un- mindful of the fact that it was a powerful grocery chain, dealing in life's primal necessities which chose this method of attracting buyers to its stores at a time when those buvers were confining their purchases to the bare necessities. This is tantamount to an ex- pression of belief on the part of what is jwrhaps the world's largest purveyor of foods that tobacco takes its place as" one of life's necessities beside bread and butter, coffee, tea and milk. These thoughts prompt another thought that per- haps all of us in the tobacco business have l>een so close to the details that we have lost sight of the im- mensity and tremendous present importance of the industry. We can't see the woods for the trees. And thoughts like these may help the cigar man, in particular, to understand the just-published report of the comprehensive survey of the United States Tariff Commission. This report, issued after an in- tensive investigation covering several months, is en- titled, **the Cigar Industry and the Tariff," and opens with these words, which may sound strange in these davs to the manufacturers, distributors and retailers * of cigars: '*A study of available statistics of production, consumption, 'imports, prices and costs indicates that the domestic cigar industry as a whole occupies a strong competitive position. With an annual produc- tion of about five billion cigars, the United States cigar industry is among the largest and most favor- ably situated in the world." So let's close up our crying rooms, gentlemen, and do something to justify our stewardship of this won- derful industry. Let's take a leaf out of President Roosevelt's book. Any one of the leaves will do. They all read the same. Action ! GEE, IT'S SWELL TO HAVE FRIENDS! Life has been no bed of roses for any of us during these past months, and particularly during these past weeks and days. But there has been a pleasant side to the picture in the splendid spirit of co-operation which has been evidenced by our many friends in their offers to be of assistance. This paragraph is to publicly express our grate- ful thanks to Samuel (Jreeiiwald, IMiiladelphia repre- sentative of the Tobacco Leaf, who called at the Tobacco Would office and generously otTered his serv- ices to help out in any way during the illness of the editor. We deeply a])preciate this cordial evidence of his friendshij) and goodwill. MIDDLETON HAS "LA MAGNITA" BRAND Believe it or not, business was so thriving the nioi-niug Thk Tobacco Wohld reporter called on John Middleton, 1211 Walnut Street, that he found it difficult to s(pieeze in a word with the boss or the energetic elerks. Here's hoping that's a i)erinanent condition fnmi now on. .John did pause hmg enough to report that he has just become distributor for "La Magnita" cigars, maniifactured by A. Siegel & Sons, New York City. CASH POSITION OF WEBSTER EISENLOHR INCREASED IN THE PAST YEAR AVebster Eisenlohr, Incorporated, reports for 1932 an operating loss of $70,671, exclusive of depreciation charges, losses of sales of leaf tobacco and incidentals, amounting to ^^259,334. 18. Cash was increased during the year from $893,750.92 to $1,934,365.37, a substan- tial strengthening of the company's financial position. AVith virtually no current debts and net liquid assets in excess of $3,800,000, Webster Eisenlohr, In- corporated, is prepared to render unusual service to the trade and the public, in the (luality of its product and the scope of its promotional plans. **Girard" and ** Ken way," the two cigars which the company began to exploit late last year, are getting a good reception in the territories where they are dis- tributed. AND NOW "KUMSOF" SOAP FOR MILADY'S HANDS TO REMOVE CIGARETTE STAINS It had to come, of course, and it's being sold in cigar stores — a soap to keep milady's hands free from nicotine stains. They call it '*Kumsof," and that's a characteristically cute lumie for this cream hand soap, made bv the Ditbro Hesearch Laboratories, 164 Fifth Avenue, New York City. "Kumsof" comes in tubes, retailing at ten cents and twenty-five cents. Kach tube is individually boxed, and the company sup- plies a handsome counter display carton of a dozen boxes. YORK COUNTY PRODUCTION INCREASE IS 27 PER CENT. OVER JANUARY, 1932 After a steady diet of liirures showing nothing but decreases, it is refreshing — and gratifying — to note that cigar jiroduetion in the York County, Pa., district in January showed a gain of nearly 27 per cent, over the same month last year. Production of 39,044,895 cigars in the first month of 1933, compared with 30,- 822,642 in January, 1932, a gain of 8,222,252, or 26.7 per cent. And virtually all the output was in Class A, the big exception being 800,000 cigars in Class C. March 15, 1933 Say You Saw It in The Tobacco World 53rd year 13 © 1933, IIGGETT & MYERS TOBACCO CO. DonH you get pipe hungry once in a while? ""T DON'T know why it is, but somehow or other thinking X seems easier when you are smoking a pipe. I can fill up my pipe with Granger, and somehow just seem to see things clearer than at any other time. ''Don't know what it is about Granger, but it must be made for pipes— real pipe tobacco. **Somehow, there's a flavor and aroma about Granger I never found in any other tobacco. When I pack my old pipe tight and good with these big Granger flakes, it's ^^.-^ about the coolest smoke I ever enjoyed." e^ u uiade mt Jjj^es 14 53 rd vear THE TOBACCO WORLD March 15, 1933 Trade Notes John WasTTior & Sons report a satisfying increase in sah\^ of tlie tive new popnhir sizes of their own con- trolled ''Wagner" brand of quality cigars. ^lore good news. Increased demand for "El Pro- ducto" top sizes has forced the G. H. P. Cigar Com- pany to run its Trenton phmt at full time. The Congress Cigar Company declared a regular (piarterly dividend of twenty-live cents a share on the common* stock of the company, payahk' March 30th to stockholders of record on March 14th. AllH^rt IT. Gregg, managing director of Henry Clay and Bock ic Company, is enjoying a well-earned vacation in the soutli, after his indefatigable work in connection witli the opening of the new ''Corona" factorv. "Just Tobacco" was tlie titk^ of an interesting address delivered to tlie Detroit Kotary Club by William M. Mazer, vice-president of the Peninsular Cigar Company and manager of the Mazer-Cressman Cigar Company. George Stocking, of Arango y Arango, manufac- turers of ''Don Sebastian" cigars, came to Philadel- phia from Chicago last week and. reported to John Wagner & Sons, distril)utors of "Don Sebastian," that this well-known brand is continuing to get a liealthy share of the business. ROSEDOR BRANDS NOW IN WILKES BARRE Manufacture of the numerous cigarette brands of the Kosedor Cigarette Company, of Brooklyn, have been begun at Wilkes-Barn», Pa., with the comi)letion of consolidation of that company with the Penn To- bacco Companv. In the Kosedor roster are "l^right Star," "Salome," "Salambo," " Hosita," "DuBarry," **Lonirfellow," "Bristol," '^Metliorets," "Gold and White," and "Koval Club." X-RAY PRODUCES NEW TOBACCO PLANTS ESULTS of a live-year study of the ellects of X-rays on tobacco jilants have been reported l)v T. H. Goodspeed, i)rofessor of botany at the University of California. The experiments, he said, have shown the possibility of producing' a series of new species of both scientilic and commercial interest. Exposure of the male cells of the tobacco plant to X-rays for varying lengths of times, Dr. Goodspeed states, produces wide variations in the product of the seed causing, in some instances the growth of giant plants with larger and more numerous leaves. In others, the result is pygmy plants with flowers of un- usual hue. *'We have touched less than a tenth of a per cent, of the possibilities in tobacco plant mutation produced by X-radiation," Professor Goodspeed said, "but we have opened up a great field of possibilities." Attention now is being turned to the elTect of other kinds of X-radiation upon relatives of the tobacco plant and upon cotton and wheat. NORTH CAROLINA FIRST IN TOBACCO TAXES ESPITE dwindling taxes from tobacco pro_d- ucts, North Carolina again led the nation in ])roduction of cigarettes and manufactured to- bacco in 1932, while Pennsylvania retained its lead in the manufacture of cigars and Kentucky forged toward the front in the cigarette tax, reporting an in- crease of $21,000,000 over 1931. Reports of the Internal Revenue Bureau last week showed that in the last year North (^arolina paid tax of $171,864,395 on cigarettes and $21,505,024 on manu- factured tobactM). Pennsylvania paid tax of $3,693,773 on cigars. The tax paid by North Carolina on cigar- ettes compared with $215,841,193 in 1931 and with $23,459,435 on manufactured tobacco, Pennsylvania paid tax of $4,952,849 on cigars during the previous vear. The total collected from the cigar lax in 1932 was $12,562,288; on cigarettes, $310,573,823, and on manu- factured tobacco $62,737,419. The cigar tax was off a])proximatelv $4,000,000; the cigarette tax was down about $30,0(X),000 and the tol)acco tax decreased ap- proximately $3,500,000. Virginia ranked second in the cigarette tax with $83,073,211 and Kentuckv third with $32,998,288, as compared with $11,466,41 1 in 1931. (California reported ciuarette tax of $8,243,032, a drop of nearly $3,000,000, while New Jersey reported $11,074,447, a drop of more than $3,000,000. * New Jersey was second in cigar tax with $1,914,133. Total tobacco taxes for 1932 amounted to $387,- 271,269, a decrease of approximately $37,000,000 for the vear. A decrease of nearly 10,000,000,000 in the number of cigarettes taken out'of bond in the United States in 1932 as compared to 1931 was shown in a state- ment bv the Internal Keveiiue Bureau. The bureau said that in 1932 stamp taxes were paid on 103,585,888,866 cigarettes, as compared with 113,449,048,657 cigarettes tax paid in the preceding v©ar The report showed that all tobacco products were off during the 1932 year, with tax being paid on 4,442,- 891,05:> cigars as compared with 5,318,892,528 in 1931. The snuff tax showed a levy on only 36,412,004 pounds as compared with 39,543,096 pounds the pre- vious vear. Tax was paid on 312,273,049 pounds of tobacco as compared with 327,9!>5,697 pounds in 1931. Plaving cards also showed a slump, with tax being paid on' 42,404,40!) packs as compared with 48,683,657 in the previous vear. The rei)ort showed that in May, June and July the tax was ]mu\ on the smallest num- ber of packs (if cards of the twelve months. NEW PRICES DID BOOST FAG SALES Todav it's cigarette smoke that blows n-al eiicour- nuvment to thcmsands. The recent cut in ]n-ice of '*P>ig Foin" cigarettes came as welcome news to countless millions. Due to geueial economic conditions, mtiny had lieeii forced to "cut dowif their smoking. Now they are once m gratify their taste. ' Inevitably, upou the heels of the new price for standard cigarettes, folio weeal would have to l)e used if the new 'Van Dyke' was to make any headway. But first came the matter of distribution. " 'It's a mistake,' says William Best, vice-presi- dent of General Cigar, 'in most instances to try to force distribution with advertising. We believe that a product should be available through a reasonable num- l)er of retail outlets In't'ore any national advertising is used. If we advertise a cigar and the man who reads that advertisement is unable to get it at his corner cigar store we have wasted some money. If the product is worth selling, if it is ever to win a permanent ])lace for itself, it should l>e possible to get distribution first. If it won't sell without advertising, it won't sell at all. Advertising, in our estimation, can only push the sales of a good product on to new ]>eaks.' " Following this ])rinciple, the (Jeneral Cigar Com- pany has established the distribution and then followed with the advertising. In Chicago, for exami)le, a crew of nineteen salesmen worked tlie territory from Jan- uary 3d to February 18th and ])laced the "Van Dyke" in 11,060 places. This does not include iner, they are good enough to tell us. And when they don't Tike it, they don't hesitate to burn us up. If we were in the habit of using "high-hat" jar- gon, w^e'd call that "reader responsiveness" — but here we are getting commercial, like the radio announcers. What we started out to say was that you'd prob- ablv like to read a few of the comments from readers on our last issue: "Your work was fine, with the exception of one it^.ni— 'a glass of beer, a plate of pretzels and a cigar.' How about the cheese?"—.! Lancaster, Pa., reader. "Congratulations! The straight-from-the-shoulder stuff vou say you got otT your chest gave mighty fine enjoyment to every Tobacco World reader. Come agaiii! Thanks for'the pat on the back you gave our editor. 'A little encouragement now and then is rel- ished by the l)est of men,' as Shakespeare or Ring Lardner might have said it."— J. Jos. Newman. "I enjoyed reading the March 15th issue, and I think you would do well to continue such work." — E. A. Kline. **One of the livost issues I ever read of yours or anv other of the trade papers. More power to your pen!"— TFa^^er L. Katenstein. (Continued on Page 12) April i, 1933 Say You Saw It in The Tobacco World 53rd year ■««■■■■"■■'»■ "First Refuge of a Stupid Business Man" That's Price-Cutting! m ■ijl ^HAT price price-cutting? Aw In the entire history of the industry no ^ question has so completely agitated the to- bacco trade— manufacturers, wholesalers and retailers -as the universal quen^ regarding the ulti- mate outcome of the hysterical price slashing which has threatened to switch an honorable, common sense policy of doing business at a fair profit to one ot doing business for fame or glory or fun or what have you. There was nothing to be worried or concerned about in the few isolated cut-rate tobacco and novelty stores that sprang up some years ago m the large centers of population. And the industry was not ffreatlv perturbed when to these "cheap- John stores were added the individual and chain "carryalls known as drug stores (save the mark!), because these, too, were mainly located only in the central business sections of the big cities. a je. P But when a big grocery chain like tlie A. & r. boastfuUv advertises its pride in being ;^ first to set a ten-cent price for the four biggest selling cigarettes, knowing that the local community chains ^ylll blindly follow their lead, it is something else again, because this action brings cut-rating into every residential neighborhood of every big city, town and hamlet in the country. , . , i 4i.« Small wonder that the trade in general, and the retailer in particular, is exercised. Small wonder that the tobacco dealers are organ- izing in every center in an effort to protect themselves just as they are organizing in Philadelphia, as reported editorially in this issue. , . , , i i • .. And small wonder, too, that dealers are looking forward hopefully to even the problematic good re- sults of the Capper-Kelly Bill, which, as recorded in our Washington letter, also in this issue may be in- cluded in the ^'New Deal" of President Roosevelt s administration. . ^,- ir r.^.. Still another item, elsewhere in this publication, serves to show that, to paraphrase I^awrence Stenie "thev order these things better in Knglaiul It there were' an anti-price-cutting law here, and if the dam- ages and costs were relatively as great as those im- posed on the lone retailer in the British case, the fines collected from price-cutters would be comparable to the expected revenue from beer taxes after happy days are here again. "Everv time there is a price war some one wins— and some one loses," says the March issue of The Canadian Cigar and Tobacco Journal. -The winner is, of course, the man that smokes the tobacco, while the losers are the manufacturers, wholesalers and re- tailers, whether they started the price war or not. "In the United States right now the tobacco in- dustry—more particularly the cigarette end ot it— is in a chaotic state, due to a big time price war. 1 eople in the (hmadian industry can thank their lucky stars that we have business brains enough to keep trading on a sound basis and courage enough to hold to a prin- ciple in spite of any and all pressure. "Constant pressure is being applied to break into lower priced tobacco products. Retailers, wholesalers and manufacturers' representatives are constant m their appeal that sales would soar if such and such a brand were cut. There are always people who are looking for an easier way to get sales. These are the shortsighted folk who rush in where the proverbial 'angels fear to tread' and frequently emerge sadder ])ut wiser by the experience. Knowing the facts, there is not a tobacconist who would wittingly become in- volved in a situation similar to the one in the United States, as the result is simply a mess, with terrific losses to the manufacturers and wholesalers, running over $100,000,000, and with independent retailers being forced out of business right and left. "The present situation is undoubtedly the most critical that the American market has ever faced, as it is costing the makers a fabulous sum and driving hun- dreds of retailers to the wall. tt u ^ "Representations are being made to the United States Federal Trade Commission and members ot Congress have been appealed to. They are asked to ST>onsor some action that will bring the crisis to an end In the meantime other branches of the trade are surtVring from the pinch. Cigars and other lines are dropping in sales due to the extremely low prices tor cigarettes. "Cigar manufacturers are manifesting grave con- cern over the present cigarette situation. They feel that with cigarettes at new low prices cigar consump- tion will probablv sutYer a further setback. It is also rc'rarded as inevitable that the credit situation in the rcFail trade, which has been steadily growing less favorable during recent years, will become an even more serious problem. • ^x. ri a-^ "What<'ver mav be our problems in the Canadian market, we are at least comparatively free from this tv|K» of comi)etition. The recent change m prices, bVought about through a reduction in taxation, was not unaccompanied by some heartburn, but, ?roadly speaking, the change was brought about with but trifling upset to retail business. We retain our even keel and can face the future with some assurance that business is going to give us an even break." It may 1k^ significant that the first" definite action in Philadelphia was taken by a wholesale grocery or- .ranization in the shai>e of the following notice: "We are suggesting a minimum retail price at which specials we offer can be advertised and sold. We do not object to you getting more, but we believe it i< for the iH'st interests of our organization that our trrocers do not cut against each other. A\e trust that this will meet with your approval m the interest ot stunning cutthroat comi)etition among our grocers. As evervone knows, price-cutting today is not con- tined to the' tobacco and grocery businesses. It is a cancer that seems to l)e atTecting all lines of business. \ recent experience of one of the editors of The ToBvrco Would is interesting in this connection. He is a repeat purchaser of a well-known type ot razor blade sharpener which sells for a dollar. Hay- ing occasion to buy one recently and finding none m Btock at his neighborhood drug store, he wrote to the manufacturer, who suggested several names ot dealers. But the editor, stopping the other day to buy a maga- (Continued on Page 16) ;iil vear TllK roBAi iNl.n A\ 1^ ^ ' '*- I ?iru , * ^ii u .ai 1 '.■a 1 »■•■ ' t!ll«' t'av 1m ^ !• ! IM' 1 ' ( ,:iLr:<' ::\ ('rt<'tl 111 tli»' f n Pr. ■ lact-. • ;.. ;i.m1 !.. _,,! with ' ' >\ Statt'> :7.'*4 por ■ ■. Mil thf ■ -t I'll . ill iuU\ !H>r CM'llt . s 11 ilHuk, • n mI" tho '^laifli ami * -t- S \Vl tvii all'. pai'Mirrai- th. T: . 11'};. 'li. laiily ia;. Hi ' \N i u 1 ; i ami ' !>ar' ill,. airai mil ' / ' jn-1 a> a (-rii-aii' ' .litor March 'i iMa>- - aLTod : niiitr Maivh ' "Uirhi 11 \sa- tlinn' ' • ' ai- - i»l«»od i: ,'.-!" • I aiul ■ Mur ■ a !■.■<■ 1 lal»it, • .Ml I ssork , par ilii[il mVi- alh-d , l^t!i ' .'Imt^ - ^ that ♦artod w ji'Hl 1, iqo, ,. ar*« amused at tlir <|U(>tatiuii frQjj. /; > nrti in \v)ii<'h kuiimj cynic wants iiiiiilicr?. arc |mwcrl«»H8 to shut iiiT the rai'^^ jIm y inu^l a|i|M»«l to the brottiliMiMcrs th. ■, WiiN : >wi'r iiiiL'lit Ik» that iiiothcrs and h[h>> a>^ at hoiii.' seven iiiLrht^ b the week*[^ 1 adiu. all take a leaf out of nur own exiK'rien an twenty years, w<. wcmhl ay that it ?« !i that when tlier4' ia aonie H^aning J any indu.stry, it i& tar nion. pn.titableanli h»r the people encraired in timt business h." necessary elTurt themselves rather than 1 tlone hy h'irislation or l»y a f'enunission that '• know anythinir ahout th«' luoblem. :iir parent-leaclu*r assoeiaUuus of the ■ r -, are goine . fnml page aiuug willi baaks. l)eer and . u ill make unr K'ues& as to who will wiii. CJJ tj) tj3 ^ ^^ llil iMM-nminiT modesty, tin* piiich hitting edi- \(/ "takf a Imiw" and utt< a- their thanks for e eonunents from readers wirarding the -la I !i lath i>?*Ue of TllK ToHATOO WoilLD. We a- tliaiikfnl for the criticisms as for the con- lMiokie> though we are, one salutary ;. \M- \mve learned from the veteran •ditor is thai ♦ i... wnr^t reilection on a puldication i^ '.» be greeted r> of ?.ilence*' from its reaibrs. Theto- .' Nsh«t >uh>cril>e to tliis puhlic ition arecer- • -ilent. When thry like sonut hi r.i,' appearing i|M.r. they are good iMiomrh to tell us. And .1 .n't like it, they don't hesitate to bumns 1 we were in the ha!»it of u>in^ *inirhbat" jar- i call that *'read«r rt-sponsiveiii--"— but here 'in^ cii!nnn'n-ial. like the radi'» announcen. W . -'ait.d out to say was that you'd prob- i«a«l a i'W of the comineiit- 'min readers -ih-: ^ 111 Nsnrk wa- lin«-. with the exc ption of one ! i. . I. a platf of pretzels and a cigar.' I fill -t • I Lancaster, I'd reader. \ aulatioh-.: IheMrai^ht fromthe-sboulder N..U tf..t otT your chest gave mighty fiw .^.rv Toiiuao WonLD f . nder. C«»e .^ ;..i th.. pat on the hack . . jcave ow •1. tiicouraireuieut now nn ! then isirel- '. ^f of uiviu* M Shak«- or Kinf ha%. -.aid it." .1. ./'- '-'inan. reading' the March 15*' - do Well to coutinu** ues I ever rea-l '• >*^°^J| <»i th»- tradi' papers. More |m' r <<^ • IV alt' I L. Katrnstein, (Cimtitiurd riM Pafj*' 12) April 1, lO:^.*^ 4* — • I i tSav You Saw It in The Tobacco World 53rd year .H— M^-HW- mtt^—n U n^— M^— «■ ■■ M- »«■ ■■ ■■ H- "First Refuge of a Stupid Business Man" That's Price-Cutting! I «!••—• -M ■■ " ■ M m M M «■ -II ■■ W 11 ■■■ 11 n— » —n- —I ■■ ■■ ■■ »^ — ^=jHAT price ])rice-cniiin,L!:! Vm In the entire history of the industry no (pn'stion lias so completely a^^itated the to- hacco trade -mannfactnrers, wholesalers and retailers — as the universal query re<::ardin^' the ulti- mate outcome of the hysterical price slasliin*,' which has threatened to switch an lionorahle, ccmnnon sense policy of doini,' business at a fair profit to one of doing business for fame or ^loiy <^»i' I'l^^i <>»' ^^ '^^'^^ ^'^^^'^' >'^"- There was nothini^^ to be worried or concerned about in the few isolated cut-rate tobacco and novelty stores that spranu: up scmie years ai^o in the large centers of population. And the industry was not .n-eatlv ])erturlK'(l when to these *'clieap-Johir' stores were 'added the individual and chain ^'carryalls' known as druir stores (sjive the mark I), because these, too, were mainly located only in the central l)usiness sections of the bi^' cities. , . ,., ,, 4 p t> ]^ut when a big grocery chain like the A. & 1 . boastfullv advertises its ])ride in boiui,' "first" to set a ten-cent price for the four bi<.Mrest selling ciirarettes, knowinir that the local community chains will blindly I'cUow their lead, it is somethim.^ else airain, because tliis action brint^'s cut-ratinir into every resuU'ntial ,H'i.' Lawreiici' Sterne, 'Mhev onler these thinirs bett»'r in Knirland." H there were an anti-i»rice-cuttimr law In-re, and if the dam- aircs and costs were ivlatively as *^n-eal as those im- posed on the h)ne retailer in the British case, the fmes c(dlected fnmi pric<«-cntters wc.uld be comparable to the rxjK'cted revenue from beer taxes after hai»py e', the man that smokes the tobacco, while the los..rs an' the manufacturers, wlndesalers and ro- taih'rs. whether tlu'V started the prici* war or not. 'Mn the rnit<'d States riirht now the lobacc<» in- diiMrv more particularly the ciirarplti- »nd ol it ~is in a chaotic state, due to a biir tinu' priiM- war. People in tin. Canadian indnstrv can thank th.-ir lucky stars that ua. havi- business brains i-nomrh to k<'ep tradinu' on a >oun«l ba^is and couraice <'nouirh to hold to a prin- tiph" in spite of anv and all j>ressure. "Ciuistant pressure is beini: apprn-d t«» break into h.wer priced tobacco products. Retailers, wholesaler^ and manufacturers' representatives are constant m tin ii" ap}x»al that sales would soar if such and such a brand were cut. There are always people who are lookintc for an <'asier way to ^^'t sales. These are the >h«>iisi^dited folk who rush in where the proverbial 'anird^ fear to tread' and frequently emerge sadder imt wiser by the experience. Knowing the facts, there is not a tobacconist who would wittingly become^ in- volved in a situation similar to the one in the United Si ah-, as the result is simply a mess, with terrific In^^.s to the manufacturers and wholesalers, running n\ »•!■ ^10<),0( )(),()()(), and with independent retailers being forca,in«' cuttlnawit comiH'tition among our grocers. \> evervone knows, ]»rice-cutting today is not con- .■M.,l to the* tobacco and irrocery businesses. It is a , .r that seems to be affecting all lines ot business. \ recent experience of (me of the editors^ of The I . ixcro Woui.n is interesting in this connection. He i< a reiM'at purchaser of a well-known type ot r /or bla.h- sharpener which sells for a dollar. Hay- ;',.. ncca-ion to buv one recently and tindmg none m .H-k at hi< neiirhborhood drug store, he wrote to the manufacturer, who suggesti'd several names ot dealers. r,ut the editor, stopping the other day to buy a maga- (Contimied on Page 16) 53rd year THE TOBACCO WORLD ii»i 11 ■■ ■■■ April 1, 1933 m Notes About Folks Who Are Going Places W 1 ■ W M ■ ■■ M New York tobacco men had the pleasure of greet- ing Ralph Graham, of Wengler & Mandell, Incorpo- ralted, on his short visit there last week. Those well-known Frings of the well-known Frings Brothers— Jules and Victor, Jr.— were recent visitors to the wholesale district in New York. Water Street, New York, now knows more than over about Bold success since last week's visit there of the Bobrows, Harry and Charles. Thoroughlv rested after his short vacation in the South, Albert *1L Gregg, president of the American Cigar Companv, has returned to his ofhce in New York. Having completed his circuit of the Middle V^est trade. Otto Schneider, sales manager of Corrla, A\ od- liska V Ca., is back at his New York desk. Bavuk Cigars, Incorporated, has declared a regu- lar quarterlv dividend of $1.75 per share on the first preferred stock of the company, payable April 1.) to stockholders of record March 'M. Friends of B. H. Bvthiner, of E. Rosenwald & Brother, were glad to learn of his recoverv trom his recent operation. He has returned to New \ork alter a trip to Havana and Tampa. A business trip across the continent and back was ended last week with the return to Brooklyn of G. K. Wilson, of the Continental Briar Pipe (Jompauy. Old Dominion Tobacco (Company, of Norfolk, Va., is forging ahead in Bayuk Phillies sales. The company was recently assisted by G. L. McGreevy, Bayuk sales- man. The Santaellas of Tampa— Mr. and Mrs. Antonio aella and their daughter— are in New York on a Santaella short visit. Joseph F. Cullman, Jr., president, and all other officers and directors of Webster-Eisenlohr, Incorpo- rated, were re-elected at the annual meeting ot the company. C D Arthur and D. F. Green have been elected directors of Liggett & Myers Tobacco <^ompany, suc- ceeding J. i\ Widman, deceased, and L. I. duller, the latter remaining as counsel for the company. Three tins of Half and Half smoking tobacco and a fiftv-cent pipe, all for fifty cents-this retail combi- nation made possible by a new deal recently introduced bv the American Tol)acco Company, is proving highly successful in the territories where it is in operation. Paul Christian, well remembered in tobacco circles as former vice-president of the Consolidated Cigar Corporation, has become vice-president ot l^letcher & Ellis, Inconjorated, New York advertising agency He was also formerly a partner of the L. H. Hartman Company. Benjamin Schwartz, of Waitt & Bond, Incorpo- rated, has returned from Havana and is again keeping 'em busy at Newark. Joe Williams, sales manager of the Scranton To- bacco Company, along with J. A. Hausan, were visitors at Bayuk 's recently. The F. W. Woolworth chain of *'five and dime'* stores will not sell cigarettes. And they won't give 'em away, either. The Mi-llogar Cigar Corporation has chosen Schwal) & Beatty, New York advertising agency, to promote its New 'Havana Secret Cigar. A bill repealing its 1929 act, which banned tobacco advertising on poster bulletins, car cards and similar media, has been passed by the Utah Legislature, and it is expected that the Governor will sign the bill. H D. Sovster, of the Bayuk sales department, is co-operating with W. H. Strouse & Company, of Johns- town and Altoona, Pa., wlio are doing a very good 30b on the Bayuk brands. The bill before the Delaware General Assembly to impose a 5 per cent, tax on gross receipts of tobacco and snuff was stricken from the calendar by request of Senator Cannon, of Seaford, author of the bill. Before its introduction generally, a thorough test has been given in the Minneapolis-St. Paul territory to Kool, tlic new menthol-treated cigarette, produced by the Brown & AVilliamson Tobacco Corporation, Louisville, Ky. Evervwhere you go these days, you will find a Bayuk executive who does not have to be coaxed to talk about the present great popularity of Phillies. Harvey Hirst was spreading the glad tidings in New York last week. A Joseph Newman, vice-president and general sales manager of Bavuk Cigars, Incorporated, has re- turned from his midwestern trip, full of enthusiasm over the present activity in Bayuk Phillies and the out- look for continuous good business. That iK'culiar and effective kinetic quality which has characterized El Producto copy and layouts for lo these manv vears, is again in evidence in the spring national allvertising campaign of the G. H. P. ( igar Companv, Philadelphia. This, the sixteenth con- secutive'national spring program, will run for three months. B. G. Mever, chairman of th<' Associated Cigar Manufacturers' Legislative ( 'ommittee, will have charge of the activities of the association at the Sen- ate hearings on the Farm Relief Bill, in the absence of John H. Duvs, president, who will be in Amsterdam attending the spring series of Sumatra tobacco inscrip- tions. April 1, 1933 THE TOBACCO WORLD 53rd year Jh— . -■■ m 11 ■»- .11 ■■ w .w W— iW- .Ml ■4» Distributor Offers New Merchandising Plan To Give Dealers Fair Profit ■ M ■■ M ■■ " '*" iW - ■ H-iiH»|l NEW DEAL— Independent Brands for Inde- pendent Dealers" is offered by one of the im- portant distributors of the east as his solution of the problems arising from the present 01 Lilt; jJiuuxvjuao M,.*.^...o ^ ^ .. m enidcmic of price-cutting and price-reducing, ien brands of cigars are included in l.is original presenta- tion to dealers, with the promise that other torms ot tobacco products and smokers' accessories will be offered later on the same basis. These brands wi be controlled absolutely by the distributor and will be placed for sale only with the merchant who is in- ercsted in building a profitable cigar business for him- self with the assurance that his efforts will not be de- stroyed later on by chain stores or other similar destructive price competition. . ,, . In presenting the New Deal to the retailers, this distributor points out that, while the Government un- der existing laws, cannot stop anyone from sc Img his merchandise at a'loss, it will not stop the retailer trom making a reasonable profit on what he sells. The plan, in a nutshell, is for the dealer to sell merchandise that he can make a profit on, and, at the Tame time, have the satisfaction of knowing that no other dealer is going to cut his price on it "We believe," says the distributor, in outlinint the details of the New Deal, "that the cigar business can aga n be made profitable, but tha a new start under a new plan is necessary, and, with your help, ''' ^''C priparin^' 'tdopendent Brands for Inde- pendei? Dealers,' we have taken i"to account various tvnes of cigar smokers and in these ne\s lines we oe lieve every class of smoker will find a cigar suited to ^^ %t iatuS'-J'the new merchandising idea '''^'''The distributor consigns the morchandisc on a consignment agreement ; the dealer makes no invest- '"^'^Every thirty days the dealer pays for what he '"" The distributor takes back what the dealer cannot ''"•independent brands are described as the dealer's own brands, at no risk and a sound profit to h.m The distributor will help the dealer to sell the morchandise Independent brands sales promotion Tlcsmen Wll help to build business on the listed branTsby sampling and other sales promotion work. There will be no chain store competition. The dealer's customer will be better sajsSed be- cause ho knows that the price is uniform with that ot nther independent brand dealers. A slogan of the campaign will 1m,, "Honest Value at Let-Live Prices." The sponsors of the plan predict that co-operation nninn^ independent brand dealers w'dl take the -rrLhe" out of the cigar business for them and Dut it on an entirely new basis. ^ The co-operation which the distributor asks ot each indcpend^it brands dealer is listed under the fol- lowing heads : ''Give independent brands the best display in your store and windows. ''Give independent brands your best salesmanship. "Give other independent brands dealers your full co-operation and support to make these brands a suc- cess. "Give us your full co-operation to put the cigar business on a sound and sensible price basis. "Give us 100 per cent, support to carry out the price schedule, at which independent brands are sold at retail. "And last, but not least, when we present our account, give us our money for the cigars sold, promptly. . "We believe you are just as much interested m getting fair and proper pay for the time and money put into the l)usiness as we ourselves are, and it our proposition appeals to you as being sound and reason- able, give us your supi>ort 100 per cent, m puttmg it 'icross "Remember, under our plan you are protected against cutthroat competition and assured of a good profit on every sale, with no possibility of loss, ^ and without the investment of one penny by yourselt. AMERICAN TOBACCO COMPANY ANNUAL RE- PORT SHOWS NET EQUAL TO $8.46 A SHARE Net income of the American Tobacco Company for 1932, after deducting depreciation and taxes, •unounted to $43,267,083, according to the annual re- ;rt "compared with $40,180,741 for the previous year^ Xet earnings on Common and Common B stock were $8.40 per share. ^ ^ i i ioc Dividend pavments during the year totaled $28^ 44') ')35 on $118,523,050 of Common and Common B tS^a J$3A61,982 on the $52,099,700 in 0 per cent, nrcforred stock outstanding. Total assets of $30:?,621,088 were reported and liibilities of $185,513,471, leaving a surp us ot $11»,- 107,C17, an increase of $ll,G59,5(i7 over the previous ■ '^'cash on hand totaled =i;4C,459,C28, almost double „,e figure of $2(>,810,061 at the end o t- Previous V car and three times that on December 31, 1930. Hoia- , gs o stocks and bonds, principally Pennanent in- vestments in affiliated ^onipanies w-ere v-a ued at $D^^^ 773 "68 This compares with $04,003,09- in IJJi, anu Us 87-> 065 in 1930. Affiliated compaiuos owed the ^4o,&(-,wJ 1" -1 ^p_~,r,r, „ decline from similar in- parent company $0(i>,idJ, a utcuut. *'" , Ain. dobtedness of $17,099,125 the previous year and $10, 074 708 in 1930. , , , Inventories of leaf tobacco, n>anufacured stock, «f 10*^0 nt •^108 237,55< and of 1931 at ^J»,ic»^iuo. 'Hiis reflected he company -s policy of increasing its muchases last year to aid in creating an extra demand for the products of farmers. 53rd year THE TOBACCO WORLD April 1, 1933 SWEENEY RESIGNS FROM EISENLOHR News of Iho resiirnatiou of John P. Sweeney as general sales manairer of Otto Kisenlolir & Brothers, Incorporated, division of Wi'])ster-Eisenlohr, Incor- porated, reached the editorial oflices of The Tobacco World just as this issue was heinn: ])ut on the presses. Efforts' were made to ^^et in touch with Mr. Sweeney to learn the nature of his future ])lans, but he could not l>e located within a few moments of press time. John B. Williams, an Kisenlolir executive whose term of service with the organization extends back into the last century, has been placed in charromotional work in northern New York. » Abe Optimo Caro, traveling on a schedule that is trainlike in its regularity, checked in and out of the Yahn & McDonnell head(iuarters last week. Vj. A. Kline, ambassador of Medalist sales promo- tion, radiated his characteristic good cheer on his usual visit to the Yahn & McDonnell offices last week. S Stern, of L. & H. Stern, Incorporated, New York, was in I»hiladelphia last week introducing the New Deal ])ii)e, and is now on his way covering the trade in Pennsylvania, Ohio, West Virginia and Ken- tucky. Herbert II. Middleton, son of F. Herbert Middle- ton, of the John Middleton firm, is recuperating from a throat afTecticm. He went to Atlantic City last Sat- urdav with the intention of remaining there for a while, but returned after a single day. The presence of so many other convalescents at the shore had a more de- pressing effect than even a moratorium. John Pappero, of Yahn & McDonnell, the three p's of whose name stand for pep, persuasiveness and pa- tience reports an immediate interest in the new Briggs packages, the eight-ounce tin and the sixteen-ounce tin. The latter is listed at $1.25, and not at $1.30, as recorded in the last issue of The Tobacco World. April 1, 1933 Say You Saw It in The Tobacco World 53rd year ILLUSION: Josie, the lovely trapeze artist, stands upon a small platform. At the will of the magician she leaps fwrnty fret into the air to reach her tra- peze. She uses no ropes, no ladder! A phe- nomenal leap for a woman... or a man! EXPLANATION: Josie didn't jump... she was sprung.' The twenty-foot leap is not dependent on Josie • ability, but on a powerful spring mechanism hidden beneath the stage which propels the artist upward through the air. The force is so violent that the lady wears a light steel jacket of special construction which protects her from injury as she starts her astonishing leap. ^Jr i^crjv TO B£ Fooled tt'c Arnj?f Fnj\r TO Fkow Majlic has its place ... but not in cigarette advertising. Consider the illusion that there is a mysterious way to give cigarettes a superior "flavor." IXWANATION: Cigarette flavor can be controlled by adding artificial fiavorings. By blending. And by the quality of tobaccos used. Cheap tobaccos can be "built up" or "fortified • by the lavish use of artificial flavorings. Such magic, however, seldom holds the audience. Your taste finally tells you the truth. The cigarette flavor that never •tales, never varies, never loses its fresh appeal, comes from mild, ripe, fragrant, more expensive tobaccos... blended to bring out the full, round flavor of each type of leaf. It's the quality of the tobacco that counts ! It is a fact, well known by leaf tobacco experts, that Camels are made from finer, MORE EXPENSIVE tobaccos than any other popular brand. Because Camel actually pays mil- lions more every year for choice to- baccos, you find in Camels an ap- pealing mildness, a better flavor. And Camels taste cooler because the welded Humidor Pack of three- ply, MOISTURE-PROOF cello- phane keeps them fresh. ATO TRICKS . . JUST COSTLIER TOBACCOS IV A MATCULBSt BLBND 10 53rd year THE TOBACCO WORLD April 1, 1933 News From Congress > Cj3 C?3 Ct3 A reorganized Department of Commerce from which all unnecessarv activities and inefficient em- ployees will be eliminated, and a tarilT policy which wdl placate our foreign customers without endangering the safety of our domestic producers are promised the business men of the country by Secretary of Com- merce Daniel C. Roper. (Continued on Page 12) April 1, 1933 Say You Saw It in The Tobacco World 53rd year 11 12 53rd year THE TOBACCO WORLD April 1, 1933 News from Congress {Contitmed from Page 10) Discussing the outlook for our foreign trade, the new head of the Commerce Department, in his first oflacial utterance, made it clear that the Koosevelt Ad- ministration has no intention of abandoning efforts to recapture our foreign trade and assist industry in the solution of its problems. At the same time he made it clear that drastic reductions will be made in his department although, he promised, ^*the business community of the United States may rest assured that we shall continue to strive for increased efficiency of service as well as for economy. '^Activities of doubtful value will have to be elimi- nated," he announced, '*but curtailment in non-essen- tial activities and services wdll permit greater concen- tration on work that is genuinely useful. ** Restoration of our foreign trade is a part of American leadership toward world recovery." COUPON SCHEMES BOOMING IN ENGLAND According to a report to the Department of Com- merce from Trade Commissioner Harry 0. Mitchell, a casual visitor reading the advertisements in London publications, in the underground railway stations, or on buses and trams, might easily be convinced that the British cigarette manufacturers are more interested in selling shows, caps, books, fountain pens, etc., than in cigarettes. Competition has become so keen among companies that the attractiveness of the premiums offered by each appears to be a more important sales feature than the quality of the tobacco. The demand for premiums given by one company alone, in exchange for cigarette coupons, is reported to keep ten boot and slioe factories working at full pressure, one order amounting to 250,000 pair, while half a million caps and 750,000 shirts were made up recently to meet the demands of smokers of their par- ticular cigarette. **An Austin a Day" was the slogan of another manufacturer who has now taken up the coupon scheme and is offering selections from a library of 450 books representative of the best in English literature. Another big British cigarette firm is specializing in boots, offering a pair in exchange for empty packets representing 1200 cigarettes smoked. B. W. Burnside, Bayuk salesman, has just finished working southern New Jersey, south of Atlantic City. Wagner, Monticello, Don Sebastian and Garcia y Vega brands are showing a steady progress, as re- flected by the orders received by John Wagner & Sons. Ben Lumley reports to John Wagner & Sons that Garcia y Vega business is better than usual in Pitts- burgh and environs, where he is now operating. There just had to be a New Deal Smoke Shop in Philadelphia. It will open on Sixteenth Street below Chestnut, under the ownership of Joe Rosoff and Sam Wachter, two w^ell-known figures in the trade. Editorials (Continued from page 4) **I enjoyed reading the March 15th issue, which was a credit to you pinch-hitters." — Hansard Foley. **I have carefully perused the March 15th issue and I want to congratulate the pinch-hitting editors on their good work." — Harry W. Buckley. **I must say that your pinch-hitting editors have done a mighty good job. I have read the issue all through, and it is very interesting." — John A. Camp- hell. **You have done a very good job in putting out an issue which is very interesting and contains plenty of good reading matter." — V. E. Canale. ** Your March 15th issue was novel, to say the least, and delivered quite a punch. There is a human side to everything and your last issue seems to have re- flected the human side of the tobacco business in a most unusual way. Keep up the good w^ork and con- tinue to maintain your paper as the most interesting tobacco journal of the East." — Jasper Fossett. **T congratulate you on your edition with reserva- tion. It expressed a piquancy which I found quite re- freshing. Being of a conservative turn of mind, I am not sure that its informality w^ould wear quite as well in the long run with the trade reading public as the somewhat more conservative normal editions. How- ever I liked the ideas and the style, and it would wear all right with mQ.''— Charles E, Rogers, Jr. CAMEL AGENCY IN LARGER QUARTERS William Plsty and Company, Incorporated, adver- tising agency handling the Camel account, is now oc- cupying the twenty-third floor of the Pershing Square Building, 100 East 42d Street, at the comer of Park Avenue, in New York. The new telephone number is Caledonia 5-1900. Recent additions to the Esty staff include Monica B. O'Shea, Kennon Jewett and Thelma Walker, on the copy staff; Robert B. White, in the Media Department, and J. J. Flanagan, Jr., traflfic manager. Bayuk Phillies are the champions of the Philadel- phia Cigar Manufacturers* Bowling League. John Wagner & Sons report healthy increases in the sales of Medal of Honor cigars, especially in the new cabinet size, formerly listed at fifteen cents and now retailing at ten cents. A new member of the sales force of the Progress Cigar Company, manufacturers of the Sussella cigar, is Charles Dutkin, formerly connected with the Con- gress Cigar Company in the promotion of La Palina. April 1, 1933 Say You Saw It in The Tobacco Woru) 53rd year 13 Do You Want to WorK for NOTHING Honest work is entitled to a fair reward. The Worker should get an adequate Wage and the Merchant should Make his legitimate Profit. The Mechanic in the Factory, the Farmer in the Field, and the Merchant behind his Counter Must Be Paid for their Services or Starve. MR. CIGAR DEALER: ARE YOU GEHING YOUR LEGITI- MATE PROFIT? ARE ALL CIGARS AND CIGAREHES DISTRIBUTED BY YOU ENTIRELY SATISFAOORY? DOES YOUR MERCHANDISE ASSIST YOU TO PROSPER? If not, ask your jobber for a Standard, Hand-made, Long-Filled Manila Cigar— a mild Satisfying smoke that can be handled to show a Fair Profit. Smokers enjoy them— thousands of Dealers recommend them. THERE IS MONEY IN MANILAS! (List of factories and importers on application) THE MANILA AD AGENCY C. A. BOND, Mgr. 15 William St., N. Y, 14 53rd vear THE TOBACCO WORLD April 1, 1933 CIGARETTE WITHDRAWALS UP IN FEBRUARY AILOR-MADE cigarettes withdrawn for con- sumption in February gained more than 2 per cent, over the withdrawals for February, 1932. This miglit l)e taken as an indication that the home-made cigarette has lost ground, particularly as manufactured tobacco declined nearly 17 per cent. The cigar industry was not so fortunate, for it marked down another decrease amounting to more than 60,000,000 cigars. There was a surprise in the figures, however, for Class E gained about 5 per cent. We have a suspicion that this encouraging increase can be credited to Tren- ton, X. J., where the Henrv Clav & Bock v Ca. factories are steadily increasing their output. Little cigars have apparently lost favor in the past year, as their decline was almost 30 per cent, in Feb- ruary. And good old snuff, the sale of which has been the marvel of the industry during past years, tumbled down more than 18 per cent. The report contains the following figures : February Product 1932 1933 Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. 269,980,055 4,606,807 68,310,840 4,509,798 321,148 246,990,730 2,179,483 34,504,660 3,418,052 337,180 Total 347,728,648 287,430,105 The cigar withdrawals for previous Februaries from 1920 on, may prove of interest to some of our readers. Thev are as follows : Previous Februaries 1920 No. 593,832,200 1921 No. 496,724,482 1922 No. 447,225,986 1923 No. 507,266,094 1924 No. 498,796,313 1925 No. 451,562,278 1926 No. 451,204,147 1927 No. 441,695,730 1928 No. 453,605,097 1929 No. 437,476,207 1930 No. 426,521,773 1931 No. 362,838,747 Figures for other domestic tobacco products are: February Products 1932 1933 Cigars (small) No. 25,657,507 17,980,107 Cigarettes (large) No. 267,899 203,601 Cigarettes (small) No. 7,680,329,023 7,853,997,217 Snuff, manufactured... lbs. 3,266,306 2,665,037 Tobacco, manufactured . lbs. 26, J50,221 21,780,898 Tax-paid products from Puerto Rico for February: February Products 1932 1933 Cigars (large) : Class A No. 4,970,000 2,217,185 Class B No. 5,400 14,750 Class C No. 129,000 36,830 Class D No. 200 Total 5,104,600 2,268,765 Cigars (small) No. Cigarettes (large) No. Cigarettes (small) No. 500,000 77,000 953,800 254,000 30,000 235,000 HOW EDGEWORTH COPY STYLE WAS BORN HE pii>e smoker, even among children, was knowTi to be good,'' when F. R. Feland, of Batten, Barton, Durstine & Osborne, Incor- porated, started to write Edgeworth advertis- ing liack in 1914, an experience which he describes as *^The most interesting advertising job I ever did" in the series under that head running in Printers Ink, '* Heroes of stage, screen and fiction smoked pipes. Smoking tobacco advertising was in its heyday. Full pages, center spreads and covers in color were its stamping ground. They featured testimonials from Irvin Cobb, Caruso and other celebrities. ''It was then that I was given the Edgeworth copy assignment. Literally Edgeworth enjoyed a good sale but its advertising schedule merely permitted it to slip into the cracks between the dominant space of competitors. "Larus & Brother Company, wdiose pride was and is Edgeworth, were disinclined to compete in space. Thus it devolved naturally upon the copy man to meet the situation through ingenious use of the 200-line, single-column space which the budget put at his dis- posal for his copy. **The copy determined upon was a somewhat pedestrian, narrative style, as close as possible to the manner in which pipe smokers talked. The whole effort was aimed at dressing the message in the lore of pipe smoking, giving it a semi-humorous and always human treatment. ''The reader was to be persuaded to spend as many seconds on the Edgeworth single column as he spent on the other fellow's back cover. Story telling was the bait. "The advertisement brought in a much larger re- quest for samples than preceding advertisements so that a new copy style for Edgeworth was definitely established. "I like this old tobacco advertisement because there are no doctors in it — and despite the fact that it is barren of testimonial. Even though it illustrates no running nose nor weeping eyes nor sneezing mouth, I like it. "It doesn't grasp the hand. It doesn't look the reader squarely in the eye. It doesn't grow popeyed with fake excitement or solemn in its warnings of com- petitors' mendacity. It has no S. A. It claims no aphrodisiacal qualities for the product. There is not a leg nor a leer nor a smirk in it. It isn't even sophis- ticated— whatever that is supposed to mean. It was just an effort to get pipe smokers to try another brand of tobacco. Similar copy is still being successfully used l)y the same manufacturer." Tax-paid products from the Philippine Islands for the month of February : Fchruary Products 1932 1933 Cigars (large) : Class A No. 15,523,700 12,673,220 Class B No. 53,433 25,840 Class C No. 21,896 19,726 Class D No. 686 Class E No. 5,110 10 Total 15,604,825 12,718,796 Cigarettes (large) No. . . . 625 Cigarettes (small) No. 116,850 92,940 Tobacco, manufactured, lbs. 90 24 April 1, 1933 THE TOBACCO WORLD 53rd year 15 BUGLER BLOWS NICKELS YOUR WAY! Bugler is waking up nickels all over camp and calling them into dealers* stores. Looks like a bargain. IS a bargain for smokers. Bugler is Brown & Williamson's idea of a fat five- cent package of fine blended tobacco for the fellow who rolls his own, wants them blended, and who doesn't want to pay more. Two packs of papers arc tucked into the back of the package. Bugler packs a wallop in sale con>e-on and profit you mustn't miss. If you haven't set Bugler blow- ing on your shelf, remember your jobber is ready to supply you. BROWN & WILLIAMSON TOBACCO CORP., LOUISVILLE, KENTUCKY Brown fli Williamson products have been designed to bring you the most profit in all lines and prices. New products are added to fit the times. Are you getting your share of profit from these live, telling items: Sir Walter Rale&h Smoking Tobacco, Raleigh Cigarettes, Golden Grain Smoking Tobacco. Wings CiRarcttes and Target Cigarette Tobacco? 16 53rd year THE TOBACCO WORLD April 1, 1933 *' FIRST REFUGE OF A STUPID BUSINESS MAN** (Continued from page 5) zine at a carryall store near the office, inquired about the stroppins:' outfit. Yes, they carried it, and they sold the editor one for eighty-live cents. The manu- facturer wrote again in a few days, querying about the editor's success in locating the sharpener. The writ- ing man was glad to relate his experience. Here's the manufacturer's comment, in part: *' Thanks for the courtesy of your letter, and glad to learn that you got our outfit. *'The news regarding the price did not please me much, however, as this price-cutting business, par- ticularly of an article of this kind where price is so closely identified, does more damage than good. ''It is certainly strange how some dealers can fig- ure that they can do business on a smaller profit than their com]>etitor on the theory that they will get that much more business and with increased volume will make up for the lower price. ''Price-cutting is fundamentally wrong, as it stands to reason that if everybody cut prices to meet competition, naturally every dealer would have to go out of business, and if this is not true, then it means that the dealer is getting too big a commission or selling margin on goods that he sells. "We have lost lots of business through many dealers throughout the country who could not afford to, and would not, cut prices, so consequently had to give up our line entirely, due to the fact that they could not meet such price-cut competition. "Today everything is price — price regardless of quality or value, with the result that nearly everyone is struggling to make both ends meet and any fair percentage of profit is practically unheard of." Kenneth M. Goode, advertising consultant of New York, and author of much-discussed books on adver- tising and sales, says that indiscriminate price-cutting is the least effective form of selling and the most destructive force in business today. "Economically, nobody profits by buying articles sold at a low price at the exf)ense of somebody else," he states. "Any man who can efficiently sell at a profit at a very low price iK'nefits everybody, but the man who sells at a price that doesn't yield a fair profit to all concerned is 'knifing' the entire business struc- ture." Slasliing prices is the first refuge of a stupid busi- ness man and the last recourse of a smart one, he de- clares. He adds that cutting prices is not only the most expensive form of merchandising but also the most risky, and all established theories and tests prove that there is no necessary relationship between a lower price and an increased turnover. ' "With so much at stake," he concludes, "I think the time is ripe for bankers, financial interests, mort- gage holders, taxpayers, newspapers, magazines, the radio and all others who have a stake in the mainte- nance of the American standards of living, to start a movement encouraging the maintenance of prices. In- stead of such slogans as 'Buy American,' we might start a broad popular movement for 'Buy at a Fair Price' in order that the murderous process of deflation may be arrested." "NO INSIDE PRICES TO ANYONE," SAYS AMER- ICAN TOBACCO COMPANY PRESIDENT "There is no method by which we can control the resale price of our products," wrote George W. Hill, president of the American Tobacco Company, in a letter to Joseph Lobel, a New York retailer who had asked how an independent merchant could make a living selling cigarettes at prices low enough to meet chain store competition. "We have one price to each and every customer and make no inside prices to anyone. "When we made our first price reduction at the beginning of this year, from $6.85 per thousand, less discounts, to $6 per thousand, less discounts, we made a sincere effort, in what we thought was the interest of the retailer, to suggest a resale price of two packs for twenty-five cents, by mentioning, on our radio broadcasts, that this was the price at w^hich dealers were offering our cigarettes to the public. "We received many letters from retailers and job- bers requesting us to discontinue the price mention, and objecting strenuously to the action of a manufac- turer in suggesting retail prices; accordingly, we have discontinued price mention on our radio broadcasts. "I hope, therefore, that you will appreciate that this is a situation which the manufacturer cannot con- trol." SWIFT JUSTICE METED OUT TO PRICE CUTTERS IN THE BRITISH ISLES Price cutters get short shrift in England these days, as witness the report of "the first case of its kind to come before the Court of Justice on price cut- ting" in the March issue of Tobacco, British trade journal. The case was that of the Ardath Tobacco Com- pany, Limited, against Mercados, a firm carrying on business as retailers of tobacco and cigarettes. "They were price cutters," says the report, "and it was suggested that they should not l)e supplied." The defendants then approached the secretary of the Tobacco Trade Association and asked that the recommendation against them (namely, that they should not be served) should be withdrawn, and were told it would be if they ceased to cut prices and paid damages. Mr. Justice Swift: "You say there is no defenseT'* Counsel: "No, my lord. I ask for judgment, an injunction against ^lercados and damages of 350 pounds." Judgment accordingly with costs. A similar judgment — a perpetual injunction against Mercados, with 300 pounds damages and costs — was obtained at the same time by the Imperial To- bacco Company (of Great Britain and Ireland), Limited. TWENTY GRAND ON 24-HOUR SCHEDULE "We have already made our dividend for this year. Therefore, we have nothing to worry about in this so-called cigarette war. Twenty Grand are still going strong." Thus spoke Wood F.' Axton, president of the Axton-Fisher Tobacco Company, maker of Spud and Twenty Grand. It is reported that the Axton-Fisher is now oper- ating twenty-four hours a day, %vith 2000 employees working in three eight-hour shifts. April 1, 1933 Say You Saw It in The Tobacco World 53rd year 17 Yes J said • I PIPE -READY better tobacco and/D/e/ifyof it COMMON SENSE MURIEL NEW SIZE 5^ Only mass production makes possible this excellent 10^ cigar quality for 5^. MM. kv r. LOIILtAKD CO.. INC. .-J NO LET UP IN SPUD ADVERTISING **We haven't even considered shifting our ad- vertising momentum from high to second gear,'' writes E. J. llelke, advertising maiuiger of the Axton-Fisher Tobacco Company, manufacturers of Spud cigarettes, in the March IGth issue of Printer's Ink. We con- gratulate ^Ir. llelke and Spud on two counts: First, on the common sense dictum that ** people smoke even during a banking holiday," and, for that reason, it would be folly to curtail the company's well-planned advertising program; second, on Spud's seasonal **geared-to-the-calendar" copy, which is our notion of humdinger advertising. Establiihed 1886 "BEST OF THE BEST 9f *"••'•"-' -' A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Keg West. Florida TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES JESSE A. BLOCK. Wheeling. W. V». .,..„.......*....„....*•....•.. .••.Pre«ideni CHARLES J. EISENLOHR, PhiUdelphli, Pa Ex-Preiidenl JULIUS LICHTENSTELV. New York. N. Y Vice Preiidenl WILLIAM BEST, New York, N. Y Chairman Executive Cointnittee MAJ. GEORGE W. HILL, New York, N. Y Vice-Pteaident GEORGE H. HUMMELL. New York, N. Y Vice-President H. H. SHELTON. Washington. D. C Vice-Preaident WILLIAM T. REED. Richmond. Va Vice-Prealdent HARVEY L. HIRST, Philadelphia. Pa Vice-Prea.dent ASA LEMLEIN. New York. N. Y .•••;••.•.• ."Treasurer CHARLES DUSHKIND. New York. N Y Counsel and Managing Director Headquarters, 341 Madison Ave., New York City ALLIED TOBACCO LEAGUE OF AMERICA W. D. SPALDING. Cincinnati, Ohio .^...President CHAS B. WITTROCK. Cincinnati, Ohio Vice-President GEO. S. ENGEU Covington. Ky Treaaurer WM. S. GOLDENBURG, Cincinnati, Ohio Secretary ASSOCIATED CIGAR MFRS. \ND LEAF TOBACCO DEALERS Jt)HN H. DUYS. New York City President MII-TON" RANCK. Lancaster, Pa First Vice-Preaident n F.MIL KLEIN. New York City Second Vice-Preaident lEE SAMUELS, New York City Secretary-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS JACK A. MARTIN. Newark, N. J ..........President AI.RERT FREEMAN. New York. N. Y First Vice-ft-esident IRVF.M M MOSS. Trenton. N. J Second Vice-President ABE BROWN, 180 Grumman Are., Newark, N. J Secretary-Treasurer NEW YORK CIGAR MANUFACTURERS' BOARD OF TRADE ASA LEMLEIN x>:- ••£!** -5"! SAMUEL WASSERMAN Vice-President THE NATIONAL ASSOCIATION OF TOBACCO DISTRIBUTORS C. A JUST, St. Louis. Mo ......President E. ASBURY DAVIS. Baltimore. Md Vice-President E. W. HARRIS. Indianapolis. Ind Vice-President JONATHAN VIPOND. Scranton. Pa Vice-President GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer MAX JACOBOWITZ, 84 Montgomery St., Jersey City, N. J Secretary 18 53rd vear Say You Saw It in The Tobacco World April 1, 1933 Tobacco Merchants' Association Registration Bureau, ^£^"^0^0^ Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), Search, (see Note B), Transfer, Duplicate Certificate, Note A— An 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 (30) 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. $5.00 1.00 2.00 2.00 REGISTRATIONS BLIMEY:— 46,167. For smoking tobacco, pipes and smokers' ar- ticles. February 27, 1933. Harry Prochaska, Inc., New York, N. Y. SOLDIERS FIELD: — 46,168. For all tobacco products. February 24, 1933. Webster Eisenlohr, Inc., New York, N. Y. STATUS: — 41,169. For all tobacco products. March 7, 1933. B & S Cigar Co.. Richard Bavlin, Proprietor, Chester, Pa. ANTON J. CERMAK:— 46,170. For all tobacco products. March 13, 1933. Samuel D. Seideman, Chicago, 111. ROUND TABLE:— 46,171. For smoking tobacco. December 28, 1932. Arthur Falk, New York, N. Y. WILLIAM A. COMSTOCK:— 46,173. For all tobacco products. February 25, 1933. American Bo.x Supply Co., Detroit, Mich. TIN CUP: — 46,174. For chewing and Mnoking tobacco. March 21, 1933. Fisher & Koser Tobacco Co., Hanover, Pa. TRANSFERS PENCHANT:— 23,820 (Trade-Mark Record). For cigars. Regis- tered January 20, 1901, by George Schlegel, New York, N. Y. Transferred to Winner Cigar Corp., Astoria, L. I., N. Y^ March 14, 1933. , . ,^ PETERSON:— 46,142 (T. M. A.). For pipes. Registered March 16, 1933, by Rogers Imports, Inc., New York, N. Y. Transferred to Harrv L. Rogers, New York, N. Y., March 15, 1933. CAMEO:— 7,560 (U. S. Patent Office). For cigars, cigarettes, smok- ing a^id chewing tobacco. Registered August 5, 1879, No. 301 (Legal Protective Association). For cigars. Registered July 14, 1881, by Kerbs & Spiess, New York, N. Y. Transferred by Gen- eral Cigar Co., Inc., successors to original registrants, to Consoli- dated Litho. Corp., and re-transferred to M & N Cigar Manufac- turers. Inc., Cleveland, Ohio, March 12, 1933. STATUS:— 21,189 (Trade-Mark Record). For cigars. Registered July 19, 1899, by L. Levy & Son, New York, N. Y. Transferred by George Schlegel, Inc., successors to original registrants, to B & S Cigar Co., Richard Bavlin, Proprietor, Chester, Pa., March 6, 1933. EL SANGRO:— 31,237 (U. S. Tobacco Journal). For cigars, ciga- rettes, cheroots and tobacco. Registered January 23, 1906, by Wm. Steiner Sons & Co., New York, N. Y. Transferred by Consoli- dated Litho. Corp.. successors to original registrants, to C. C. Creitz. York. Pa., March 21, 1933. BUNNIE BOY:— 26,641 (Tobacco Leaf). For cigars. Registered December 15, 1903. by The Maryland Litho. Co., Baltimore, Md. Transferred to A. J. Golden, Baltimore. Md., February 9, 1933. LA VEGA DE GUEDALIA Y CA:— 16,864 (Tobacco Leaf)^ For cigars, cigarettes and tobacco. Registered May 5, 1899, by Gueda- lia & Co., New York, N. Y. Through mesne transfers acquired by J. M. Rosenberg, and re-transferred to the Petri Cigar Company, Inc., San Francisco, Ca!., January 28, 1933. CALAHAN TO ADVERTISE ROUND TABLE MIX- TURE FOR FAIRFAX TOBACCO COMPANY Arthur Falk has organized the Fairfax Tobacco Company in response to numerous requests that he re- sume the business long maintained by his late father, M. Falk, his late l)rother, Albert Falk, and himself. He has re-entered the industry with Round Table Mix- ture, a blend of foreign and domestic tobaccos, packed in the two-ounce Nupouch Pakit, and in eight-ounce and sixteen-ounce sizes. The Kound Table advertising is directed by Harold Augustin Calahan, New York advertising agent. mMMMMMMSSMMMMMSS^M^^Mm TUMJM Classiliecl Column The rate for this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payabls strictly in advance. rirrivirrwrr^virrtsjrtri^vit cSEytTso? ti?r^ffrflrrfl!fi^B?w«a POSITION WANTED CIGAR FACTORY SUPERINTENDENT. MORE THAN 20 Years' Experience With One of the Largest Manufacturers. Hand work or automatic machines. Address Box 560, care of "The Tobacco World." FOR RENT OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR STORAGE— No parking restrictions; good location; low rent; freight elevator and loading platform. Will divide. Metals Coating Company of America, 495 North Third Street, Philadelphia. HAVANA CIGARS OLD MANUFACTURING FIRM OF HAVANA QUALITY CIGARS will serve orders in any quantity to discounting dealers, at profitable prices. Satisfaction guaranteed. Address for particulars Fair Dealing", Box 1168, Tampa, Fla, OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco melCow and smooth In charactat and Impart a moat palatable flavor fUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. AlOIIATlZEB. BOX PLAVOIS. PASTE SWEETENEIS FRIES & BRO.» 02 Reade Street, New York | GEORGE GIVOT ON OLD GOLD HOUR Exit Jolin Modlniry. Enter Ooor^o (Jivot. That's tlic ^ood news for listeners to tlie Old Gold radio pro- L^ram, and it's particularly pood news when coupled with the announcement that Fred Waring and his Penn- sylvanians, and *'Mairnolia" are retained on the new program. It was just too much to expect that Old Gold, on its return to the air six weeks or so apo, could have introduced three "naturals" at one time. That two of the three should have clicked so decisively is a real tribute to Old Gold's air showmanship. First to put Paul Whiteman on the air, the **not- a-cough-in-a-carload" cigarette was first to bring Fred AVaring and his Pennsylvanians to tlie radio in a series of national broadcasts. And now these boys are al- ready one of the most popular band aggregations on the air. As for ** Magnolia," she has nothing else but what John Medbury lacked. John's material was good and of the same incisive, wise-cracking character as the stulT in his i)opular daily column, but, as Frank Tinney used to say, "he put it over and it laid there." And now we welcome George Givot, "the Greek Ambassador of Goodwill," in anticix)ation of a smooth hour with him, Fred Waring, the Pennsylvanians, Magnolia and the broadminded advertising continuity. The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phi la,, Pa. Hanover, Pa. Cincinnati, Ohio York Pa AUTOKRAFT BOX CORPORATION Chicago, lii. Lima Ohio Detroit, Mich. 4 1^^ ^* ^ \\n p^ ^4>«^^«^€» Wheeling, W. Va. A r^Atioax Wif service ^^ PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA n After all ^^^ nothing satisfies like a good cigar WOODEN BOXES Are the Only Natural Humidor for Cigars. Pack your cigars in wooden boxes and preserve their delicate aroma, mellowness and flavor right up to the time they are passed over the counter to the customer. Discriminating cigar smokers prefer to select their favorite brand from a wooden box— and it's good business to cater to the dealer and con- sumer by packing your cigars in wooden boxes. WHEN BUYII Remember that Rei THE BEST ARE PAG WOODEN Volume 53 THE TOBACCO WORLD Number 8 Established 1881 TOBACCO WORLD CORPORATION Publishers Hobart Bishop Hankins, President and Treasurer Gerald B. Hankins, Secretary Published on the 1st and 15th of each month at 236 Chestnut Street, Philadelphia, Pa. Entered as second-class mail matter, December 22, 1909, at the Post Office, PhUadelphia, Pa., under the Act of March 3, 1879. $2.00 a Year PHILADELPHIA, APRIL 15, 1933 Foreign $3.50 T lias not been our privilege to preview the promotional plan which has been devised to rehabilitate the cigar business. Hut ^ve do know that it is the result of several months' hard and intelligently directed etYort; that it has been agreed upon by a substantial number of the leading cigar numufacturer.s; that these manufacturers have expressed a willingness to subscribe their proportion- ate share of the necessary expense of the program; that the plan does not contemplate shoveling huge sums into general advertising propaganda; that it is spon- sored bv a (V)mmitlee of the Associated ('igar Manu- facturers and Leaf Tobacco Dealers, headed by D. Emil Klein as chairnuin; that the plan, however, is not con- fined to members of the association, ))ut is open to all cigar manufacturers; and that it will become an actual- ity if upwards of 7') i)er cent, of the manufacturers will underwrite the costs on the basis of only two-tenths of one per cent, of the normal business of each subscriber. Assuming, from even our incomi)lete knowledge of the details, that tlie plan is sound, it is our opinion that a manufacturer wlio would not invest this small frac- tion of a normal vear's incinne to resuscitate the busi- ness which is his* livelihood is thereby admitting that he does not want hi> business restored. Cj3 Ct) C?3 T the top of the live-column A. cK: \\ advertise- ment in tlu' Philadelphia evening news]»a])ers on \\)r\\ 1.". (Holy Thursday) was the an- nouncemi'nt, "In observance of (lood Friday, AT)ril 14, our stores will be closed between the hours of 12 and :5 V. M." Towards the bottom of the advertise- ment was a box listing the A. & V. cut prices of the Big Four cigarettes— lil cents a \mvk of twenty, 2.') cents a tin of fiftv, and $1.(M) a carton— headed by the signifi- cant warning, "Buy a supply of your favorite brand UQ^v — /)nr j)rices advance Monday, A])ril 17." AVe do n(»t know, ollicially, that there was any con- nection between these two announcements, but, being ourselves tilled with the spirit of Passover and Holy Week, it is j»leasant to regard this ])henomenon as evi- dence' that the chain >tore system has been unjustly indicted as a soulless corporation. Here is testimony to show that it required only the approach of a great to bring the corporation to a realization of the havoc its i)rice-cutting tactics have wrought on the time- honored business of retailing cigars, cigarettes and to- bacco at a fair and honest profit. This thought is so intriguing that we are con- strained to ])lead with the Big Four manufacturers to schedule future price changes at Christmas or Easter- tide, when the insi)iration of the holy season would counteract the temptation of the grocery or other chains not depending on tobacco for a livelihood, to add an extra slash on their own account. The retailers will thank the manufacturers for this thought fulness. ^^^^^ ^bO^a a^O** £j3 Ct3 Ct] FFFCTIVF advertising is exemplified in the new cartoon strip presentation of Camel's ''no trick" story. This latest form of what is un- deniably one of the most discussed advertising campaigns of the year gets the basic idea over in more jiaphic style, but, what is more important, it hooks up ( 'amel cigarettes more closely with the copy. The various units of the previous releases are wisely retained, so that we continue to read in about everv newspajier we pick up, that "It's fun to be fooled .* it's more fun to know," as well as the Camel ap- pial, *'Xo tricks . . . just costlier tobaccos" and the viniple declarative statement, "Camels contain finer, mure expensive tobaccos than any other popular brand," which is now most etTectively placed beside tlie i»ackage. Ct3 ($3 Ct3 XE manifestation of the business hysteria of the last fe^v years has been the prevalence of contests. We can understand the temporary stimulus to sales resulting from these competi- tions, because one of the requirements for entry is a label,' or carton top or wrapper "or a drawn reproduc- tion of same," but we have yet to see any evidence to show that It required only tne approacn o a .^^leai '" "t.i; .i,, ^,,,^ ,,.,i^^ or ill-will growing out of religious festival to touch the hidden soul ot the chain, ot an.MUmg ( i>. nui ^^nci » 53rd year THE TOBACCO WORLD April 15, 1933 them. Sometimes misuecessful contestants go to the length of suing wlien the decision goes against them. We remember reading of one such suit brought against a prominent motor car company. The contest in this instance was for the best answer to a question. The entrant who sued did so on the ground that the winner, while tiattering the company with Jiis entry, actually did not answer the question, and we were in- clined 'to agree with that contention. But we never did learn wliat was the outcome of the suit. Now we are to be regaled with the details of an- other suit of the same kind, brought against a cigar manufacturer. The contest was for the largest num- ber of words formed from the letters in the name of a cigar. We know a man and his wife who, with the aid of an unabridged dictionary and the required letters cut on small strips of cardboard, amassed something like 1300 words from the 12 letters. The winner, however, submitted only 1100 words. Suit is now brought by another contestant who entered 1177 words. It comes out, however, that the winner was de- cided, not on the largest gross number of words, but on the largest number of words found to coincide with a ''master list" of 1)04 standard words, c()nq)iled by three University professors. This manufacturer ought to have some figures on the value of such a contest. He ouglit to know what direct stimulus to sales there was for contest ants to get the necessary labels. And he ought to have some idea of the number of thousands of unsuccessful con- testants who are anything but friendly to liim, in con- trast to the handful of lucky contestants wliom lie pleased. Yet tomorrow or the next day, another manufac- turer, maybe in the same industry, will get the contest bug and will go to untold trouble and expense to con- duct one of the things, without making any investiga- tion of the results, good and bad, that others got out of a similar stunt. ^ CS3 Ct3 T IS ONE of our pet contentions that the secret of a successful retail ])usiness li<'s, vu>\ in ]>ally- hoo, smartness, cleverness or trieks of any kind, but in the day-in-day-out i)ractice of old- fashioned fundamentals. *A clean, well-liglited, well- stocked store. Anatmosjihereof wek'ome. A smile for your customer if a smile comes natural to you (if not, beware of that sickly jirofessional imitation of a smile w^hich is one of the niost goshawful sights in the world). A respect for your customer's taste. A courteous *' Thank vou" when he has bought. This pet belief of ours was in our mind when we picked up Vol. 30, No. 1, of The Vmlr^i Shubl sixteen- page house organ of United Tigar Stores and Associ- ated Companies, and saw the title of the leading article, ''How to Build Cigar Business." Being outside the United circle, we had not, of course, lead the ])revious twenty-nine volumes, but we were certain that they must have contained every ])ossil)le suggestion ('U the selling of cigars, so we should not have been surprised to find some highly sophisticated discussion in tlu; arti- cle that caught our eye in this current issue. Lo and behold ye, it is nothing more nor less than n restatement in simple declarative sentences of the fundamentals that we advocate on every occasion. Tlie article does its job so simply that we cannot resist the temptation to reproduce it in full. Head it. It's not literature. It's just i)lain common sense, which, as evervbodv now ought to know, is the most uncommon commoditv in the world. And don't refrain from read- ing it on tiie ground that you can't learn anything from an outfit that couldn't save itself from trouble. Take it from us. United Cigar Stores did not get into trouble bv adhering to the following recommendations: "Cigar smokers' tastes vary greatly. Some prefer the all-Havana type of cigar; others prefer Porto Bican; still others favor Manila, domestic or l)lended type. In every case the cigar any smoker prefers is t iie best cigar, tis far as that smoker is concerned. That is what we mean when we say, 'Cater to the smoker's "A large number of smokers are oiten sold the wrong tvpe of cigar, the type that does not fit their taste, aiid thev immediately condemn the cigar. It is leally a bad cigar— to them— because they just don't like it. Don'ttry to make them like it. ''The cornerstove of the iohacco busitiess is cigars; alwavs has been and undoubtedly always will be. The ciuar is a man's smoke. The successful tobacco iner- clmnt knows that, and builds his Inisiness accordingly. "The successful tobacco merchant understands ciuars; knows the delicate nature of cigar leaf; knows how sensitive it is to excessive moisture, or the absence of it, and how sensitive it is to all odors, even the faint- est odors; he therefore keei)s his cigars protected airainst all such contamination. "The successful cigar merchant keeps his cigars neither over-moistened nor too dry; he keeps them in just the right condition necessary to bring out all their fine Havor and aroma. "The successful cigar merchant knows how to dis- cuss cigars in all their strong appeal with cigar smokers because he understands that ai)peal; he Iniows there are few su])jects about which a man likes more to talk than about good cigars. He fosters that prefer- ence and qualifies himself to talk intelligently on the -uhject. He knows the dilTerent brands, their charac- teristics and their individual differences. "He knows what results are iirodiiced by blending certain types of cigar tobacco, makes it a point of im- j)ortance*to determine his customers' ju'efereiices in that «lirection and sees to it that they always get the type of cigar ]>est suited to their individual tastes. "In this article we have endeavored to embody the >trong i)oints of cigar selling; they may be briefly summed up as follows: •A'AOir YOUH CKJAHS— A'E/vP YOUR CI- <; AHS HKJHT-and^ .s7';L/> YOUR CIGARS RIGHT. "Make no mistake; there is still a big cigar busi- ness to lie had, aiul the iium who knows cigars and how to sell them, the iiuin who understands the appeal of a good cigar to the average man, and cajiitalizes that appeal, is the successful cigar merchant we refer to here. The jiractice of selling cigars by laV)el and push- ing them out as so many |)ieces of wood is not selling ci^iars nor does it Imild cigar business. '*You must imt knowledge and ])ersonality into cii;ar selling. Make a rite of selling cigars, because in a big measure that is what it is. When you put the ritdit cigar into the haiuls of the customer, you are doinir vour full share to l)ring contentment, pleasure and happiness into the lives of the generally most worth-while people— the smokers of cigars. DO IT. April 15, 1933 Say You Saw It in The Tobacco World 53rd year «!»■. I ■■ n ■■ ■■ — "It CouldnH Be Done," But They Did It The Story of Robert Bums •JH— ■•- .«■ 11 M ■■ — ~l» ■■ M ■■ 11- M M H ■■ ■■ ■■ ■■ ■■ M 4 By F. J. Ross Chairman, Fuller & Smith & Ross, Inc. The foUoivinq article, one in a series entitled. ".In Adver- tising Experience' I I'ound Most I nterestinfi." is reprinted from the April nth issue of Printkrs' Ink because of what uuiy be called its "inside story" of the promotion of the Robert Burns cigar. EETHOVEN was once asked which of his com- ])ositions he liked the best. He re])lie(l "Al- ways the last." The genius of Beethoven, to me the most moving and awesome which music has yielded, has no parallel in our material advertising world. But many creative advertising men share with him, I imagine, the trait of his just cited. It is said that Beethoven kept a washbowl, ewer, soap and towel near his piano. In the fever of com- position which doubtless induced a nervous ])erspira- tion, he would wash his hands every few minutes. The quill with which he scored and the keys through which he sounded his new-born ideas felt ])etter to his hands. This recalls the almost unbelieva])le genius of Wagner, who, when in poverty-stricken exile in Paris, wrote sev- eral of his greatest* operas without any piano. Pure abstract creation. The advertising man, just a type of liusiness man after all, and usually a clean animal, doesn't wash his hands every few minutes when at work, but he (Iocs* smoke. Tons and tons of tobacco and countless cigars and cigarettes have gone into the ])roduction (»f adver- tising, which brinus me to my story of Robert Burns and White Owl. The story may be interesting because it tells of bringing back to greater vigor and fame than ever, two brands that were deathly sick. Also because it tells of exploding an old tradition of the cigar industry. The Tnited Cigar Manufacturers (Corporation (to- day known as (leneral Cigar <'oini)any. Incorporated) was a merger of several independent conceins. Some of these concerns wen* making very gooil cigars that had little fame. One of these concerns haut (piality of its prod- ucts had slackened. This was the concM'rn that had brought Robert hums and Owl into the nieruer. There was much debate about future policy. The corporation owned many brands of varying repute and volume. It could not promote them all. The trend of the times even tlu'ii in P.'U p(>inted to c<'iit ralization of elTorts and fav( it was this — the corporation had no brands as well known and widely distributed as Robert Burns and (Kvl. P.ut both of tin's<' brands, decimated in quality, were riding on momentum, a momentum steadily subsiding. There were three schools of thought represented in the debate. 1. It takes a long while to make a large ]>nblic familiar with a brand. Let us take Robert Burns and Owl, our best known brands, standardize their (luality, standardize their selling, standardize their distribu- tion, and gradually l)uild up strong, healthy brands and c<)mmensurate volume. 2. Let these famous old brands proceed to their death and put the effort behind two other brands of live- and ten-cent grade respectively, which though not so well known nor so widelv distributed are brands with a good heritage. :\. Create a new brand in place of Robert Burns and another in ])lace of Owl. In view of the grand structure General Cigar has since reared on foundations laid primarily in those (hiys, and to which it has continually applied a caliber of expansion and development worthy of the highest admiration, I was sitting in on a big potential situation. I didn't sense this fully at the time, for I think no one in the circle active on the problem dreamed of the two uiaiits that would ultimately spring from the almost 8 per cent of the stocklioklers of the company who voted either by proxv or in person phu'cd their stamj) of approval upon the tirin's ])olicy of l)estowinji: casli and stock bonuses upon its ofKcials and empk^yees. A small minority voiced its dissent. Paul M. Hahn, vice-president of the company, pre- sided at the meeting in the absence of Mr. George W. Hill, president of the company. The following were elected to the board of di- rectors: Richard J. Bovlan, John A. (^rowe, C. Huntley Gibson, Patrick H. Gorman, Paul M. Hahn, Tullis T. Harkrader, Edmund A. Harvey, James B. Harvie, George W. Hill, James E. Lipsc(mib, Jr., (Miarles F. Neilev, William H. Ogs])ury, Fred B. Renter, Frank V. Riggio, Vincent Riggio, Thomas }{. Taylor and AVilliam E. Witzleben. A resolution approving allotments of stock made to em])loyees by a ])lan ap])roved at a special meeting in July, if>30, was passed by the following vote: For Against Preferred 202,:^>63 3,839 Common l,()4(l,3(;:) 27,(5!M) Common B 2,003,563 72,942 Allotment and sale of j)referred stock of the com- pany to officers, directors and em])loyees from 1!U7 to 1927, and of common and common "B" stock in 1918, 1924, 1925, 1926 and 1!)29 was api)roved thus: For Against Preferred 290,633 2,418 Common 1,036,731 23,517 Commou B .... 2,004,089 36,829 The following vote ratitied the cancellation and abrogation in December, 1!>31, of allotmuntti and sale of stock under a plau adopted in 1929: For Against Preferred 290.603 1,939 Common 1,036,551 21,693 Common }l .... 2,004,022 36,872 Last week's action does not, however, make the bonuses actuallv effective. Two vears of litigation in the courts have preceded it and the case is still pend- ing before the Court of Chancery of the State of New Jersey. The allotted stock has been kept intact pend- ing the outcome of the legal case. The salaries and bonuses credited to Mr. Hill are perhaps indicative of those received to a lesser degree by liis sul)ordinates and form the basis of the oi)posi- tion of the minority group. Tiie president received in 1932 a profit sharing ))onus of $669,500, against $891,- 570 for 1931, according to a i)amphlet issued to stock- holders. His profit -slui ring Imnus in 1930 was $842,508 and $447,870 for the preceding year. Last year he also drew a salary of $120,000 and tJie year before $160,000, making his total compensation for the two years, re- spectively, $789,500 and $1,051,570. Robert H. McCarter, former Attorney General of New Jersey, and himself a small stockholder, insisted at the meeting tliat the trade done l)y the company is so great that the bonuses in reality represent no more than a 5 per cent, commission paid salesmen on the road. BIJUR HEADS MAZER-GRESSMAN Samuel H. P>ijur has been elected jiresident and active managei- of the Mazer-(h*essman Cigar Com- I)any, lncori)orated, nuikers of Manuel and Tennyson cigars. He will continue as a partner in tlie leaf to- bacco firm of Fj. Rosenwald & l^rother, but will spend the greater part of his time at the Mazer-Cressman head(|uarters in Detroit. Other officers elected were: Charles X. Cressman, first vice-president; Henry Mazer, second vice-presi- dent ; J. C. Dissette, treasurer, and A. J. Levin, secre- tary. It is announced that the manufacturing organiza- tion will be retained in its entirety. MAZER ORGANIZES NEW COMPANY The Mazer Cigar Comj)any, Tncori)orated, is the name of a new Detroit manufacturing company organ- ized last week by Jacob Mazer, following his resigna- tion as secretary, treasurer and active manager of the Mazer-Cressman Cigar Company, Incorporated. As- sociated with him will be his son, AVilliam. Tlie new company lias leased a jdant at 3437 Goldner Avenue, Detroit, formerly occupied by the old Webster Cigar Company. Although retailers and distrilmtors are far from satistied with the cigarette situation, tlie manufac- turers are api)arently convinced that it is a profitable business. Last week the Brown & AVilliamson Tobacco Corporation, placed twenty-eight men in selected re- tail stores in Phihnlelphia and placards on the windows of the stores invited everybody to step inside and pro- cure a coupon from their representative and present it at the counter with six cents in cash and obtain a ten cent package of Wings cigarettes. The imi)ression prevailing throughout the trade seems to be that this was simply the equivalent of a statement from the company that they were in the ten-cent cigarette field to stav. Yahn & ^FcDonnell report an excellent call on their Marcello ))ran(l which was recently re-established here under their **new deal" plan, and at the reduced price (»!" live cents. This brand, once one of the "big sellers" in this territory, has been off the market for se\ cial years, but th(Me are apparently ])lenty of * 'old- timers" to whom the name Marcello brings back ]»leasant memories, and there was an immediate de- mand for the v'Mxay u]>on its a]i])earance in the dealer's case. The l)rand is controlled bv Yahn & McDonnell. In the lobl)y of the (leo. ZifTerblatt & Comi)any factory on Soutli Third Street, the home of the Hab- niiello cigar, there is prominently displayegether with Charles Bond, constitute the tobacco agents for th(» Philii)i)inc Gov- ernment in tile good old V . S. A., and who spends his time travelinu arouiui the country extolling the merits of those u<)od Manila cigars, was in town last week visiting retailers and distributors and reported prog- ress. Mr. Morris was verv definite in his statement that business has turned that much heralded corner. April 15, 1933 THE TOBACCO WORLD 53rd year j»l M .1 ■■ ■■ »■ — Will ICigars Stage Strong Comeback With Beer? Only Cigar Industry Can Answer ■«■■■»■ n ■■ ttff ILL the era of prosbeerity, just happily ushered in, be marked by a revival of cigar smoking, to the everlasting 1)enefit of the sorely-beset cigar industry? That is a (piestion to which only the cigar industry itself can give the answer. It were puerile to try to answer the question by putting a close watch on cigar sales during the first twentv-four hours, or the first week, or the first month, of le«-*alized beer selling. If the industry intends to depend on that kind of automatic influence, tor in- creased sales, it had better not plan on any night shitts to fill expected orders. -Time alone will tell"— that is an exi)ression which we are already hearing from cigar people who are asked whether or not cigars will sell more readily now that a former buddy of the cigar has been restored bv Presidential decree to honor and respectability. * *'Time alone will tell"— isn't that a swell line tor the representatives of an industry that used to i)ride itself on its initiative, its resourcefulness, its enter- ])rise, its go-gettiug sticktoittiveiiess, its ur plus ultra salesmanship. ,. , • i' i • i It sounds more like the drone ot a business torhid- den bv law to do anvthing to stimulate sales than tlie rallvi'ng battlecrv (»f a group of fighters enrolled under a b'anner em)»lazoneil with the bold words, '*Be a Man ' ' ' Let's for--et this "time alone will telP* nonsense, and see first what etTect the return of hi^vv <> ugh t to have on cigar sales, and then what eflect it mu ho made to have. i • .. i« A ci'^ar goes with a glass of beer— a leisuieh smoke for a leisurely drink. It 's a part of tju' picture of the congcMiial groui) around the table. It belongs there, along with the ]n-etzels and cheese. So, as more beer is sold, more cigars ought to be sold. The return of beer-drinking, too, means a recru- descence of the fine old art of treating. And the cigai" is the time-honored substitute for the man who is either not imbibing at all or has already taken all that the doctor ordered. Xot to menti(m the dispenser, whoso union a])parentlv laid it down as an iron-clad regula- tion that he mu'st aeci'pt from iiis customers nothing other than a cigar, to be ostentatiously displayed to the customer befcne l)eing deposited in the vestpocket behind the white apnm. The m(»re treating, then, the more cigars ought to be sold. ,. ,, , -, Burthe cigar manufactuivr, distributor or retailer who is expecting that these natural, almost autoniatic ofTects from the re.toraticm of Iumm' will be suflicieiu to restore the ciirar business to its former high state, so that prosbeeritv will spell pros,)erity tor the cigar industrv, is just a ccunmon, ordinary, garden variety d f Things just t a S( V What has happened, of course, is that cigar manu- facturers omitted to educate the boys of yesterday to the grownup enjoyment of cigar smoking. Time was when, in the natural course of events, a young man was graduated to cigar smoking just about the time when he started to drink an occasional glass of beer. When he could smoke a cigar, and the bartender did not flag him when he ordered a beer, he was a man. Came the war, the apotheosis of the cigarette, and the consequent widespread adoption of the shorter, quicker smoke. ^ , On Friday, April 7th, in this year of grace, hun- dreds of thousands of young men enjoyed their first drink of legal beer. ^ . ^ A mail who was twenty-one years old on that day was onlv a small bov of eight when beer was banished. Voun*'- inen of sixteen or seventeen today were only l,abies then. What do they know about cigars or cigar Muokingt , ., _ ^, .« , We do not know anv of the detads of the unified promotion plans of the Associated Cigar Manufac- turers, but we can predict unqualified success tor them onlv if thev are directed to the young man of today. ' Mr (*igar Manufacturer, take it from The To- bacco WoHLi), train your guns on the young man ot todav and vou will do a double-barreled 30b tor the industrv. Vou will be hitting the most responsive market* for an immediate improvement m cigar sales today, aud you will be guaranteeing tomorrows market. •tun that looks as attractive as the one we have just ictureK()(il{AM of tnule promotion, publicity ami iiien-liandising aeveloiniifut was adopted at a .-...•I'lit moc'tin- of the Associated Cigar Manu- ladurers uiid Leaf Tobacco Dealers at he „ftic,.s of Trade Wavs, Incori)orated, which reported ;rco,npletio„ of its'smvey in the interest of the c.gar '"""hTtiu. abs..nce of John H. Duys, president, now in \,„s "rdan., the work is beiufi etYect.vely handled by i) 1. >nil Klein, chairman of the research conmuttee No details of the promotional plan were divulged, but il is understood li.at it will be concerned chieHy with til., retail division of tlie industry. . , , i (' m .anies reniesented at the meeting included: .l.-iur r ga Company, Henry Clay and Bock & Com- Bavuk Cigars, Incorporated, Porto Rican-Amer- Tobacco Cmnpany, Waitt & Bond. !"«>;,!'?';£{ •on-ness Cigar Company, DeiseMN emmei -Gilbert ■ noratioii. Wel)ster-Kiseiilohr, Incorporated, D. V:;:!,Tlein Company, K. ff^^^^'^^Z i;:;;;-;.: U:;^': itvis l company, and the Morgan Uigar (Nmipany. Bandits held np the driver of a P. Vt"-r.'''iioZo ,,„ny truck in Brooklyn last week and stole its $U),0()0 lobiicco cargo. 53rd year THE TOBACCO WORLD April 15, 1933 B. P. ALSO MEANS BUSY PLANT AYUK activitios in staccato . . . you don't really got the tempo aceelerato fortissimo of the Ninth aiid C\)lnmbia Avenue heathiuarters when you enter in the orthodox way by the imposinu' main entrance and are whisked to the gen- eral offices and luxuriously appoiuted receptKm rocmi on the seventh Hooi . . . you know that big business is going on somewhere . . . ))ut you don't see it or feel it or hear it or smell it . . . only when those liighspeed elevators are out of commission temi)orarily and you are courteously escorted through the i)laut to the rear elevator does the activity of the place impress itself on your phvsical senses . .* . then you see the visual evi- dence of the growing demand for Phillies and the other Bavuk brands . . . you feel the pulsaticnis pecul- iar to a big plant oi)erating at cai)acity . . . you liear the subdued hum of the orderly jirocesses of mainifac- turing and shii)i)ing . . . and you inhale the aronui of good tobacco. Incidentally it was pipe-smokmg (;hristoi)her Mor- ley who started this dotted cohnnn idea . . . or revived it*. . . because it was really introduced by old Kenelm Digbv back in 1S41 B. Ik". . . which means before Bayiik . . . but let's get on with our i*hillit;-laiiderings the visitor al lieadipiarters just before us was A. ('. Hov, territorial manager for the Northeastern States . ! . and we learn that the Kearney-Lehmaun Companv, the Buffalo Jobber, is elated over the way Phillies are sellinu' . . . that Jack Snyder, Los Angeles territorial manauer, reports uratifyinu: Imsiness throuu:h llaas-Baruch Compauy . , . that McMahan & Leib '('omi)any of Anderson, Ind., are nuiking line strides in the sale of IJayuk brands and were recently assisted bv Salesman (".'(). Met 'lure . . . that L. }V. Bosart (Vnnpany, of Si)ringlield, Ohio, are forging ahead on sales of Bayuk cigars and have just closed a campaign aided by Salesman F. .1. Horning . . . that A. FrSchultz ('om])any, distributors of Erie, Pa., are putting Bayuk cigai's to the forefnmt in tlieir terii- tory ... in a word . . . or rather in four wor to radiate the feeling that busi- ness is good . . . you leave the ])uilding at the Ninth Street door . . . convinced that people are ])uying cigars . . . eei tain that they are buying Bayuk Phil- lies . . . by the box . . . by the case ... by the carload . . yowsah. Trade Notes 8. Mc( andless has joined the sales force of (ieo. ZitTeri>latt c^' ('(mii)anv,' and will promote llabanello sales in Southern IMiiladelphia territory which was formerlv covered by Fred Maier. Joe llalporn, one of our old-time cigar manufac- turers, has engaged in the cigar manufacturing busi- ness on (lermanti)wn Avenue, with a partner, under the name of the J. & J. Cigar (^unpany. The M. J. Dalton stand, (ill Chestnut Street, re- ports a heavv sale of Briar-K<»b pipes, retailing at ten cents each. 'The bowl of the ])ipe is guaranteed to be made from imported briar-root with a composition stem. lien Luniley, representing tlie F. S«»mmerfehl Ciuar Company, Miami, on their Duhe and Verdi brands and the*(Jarcia y Vega, Tampa, brand, i- work- iim in upper New York State in the intere-t ot hi> brands and report^ a good trip. Another evidence of the fact that the cigarette held is considered a i»rotitable (»iie at this time, is the r<'port that a jirominent manufacturer of high-grade cigarettes will soon iilace a new liigh quality brand on the marki't. Abe l^erkowitz, >ales representative of the Chris- tain Peper Tobacco Comjiany, St. Louis, Mo., manu- facturer of Listerine ci-arette> and otln-r well-known hiirii-Lnade ciuarettes and smoking tobacco, was a visitcM- last week in the interest of Peper's l»ouch Mix- ture. This is a hiuh made smoking to])acco ])acked m an oiled silk i.ouch ane ])urchased at twenty-five cents for two ounces of tobacco. The new- brand* has been i)laced in the Yahn & McDonnell outlets throughout the citv and is meeting with a good call. April 15, 1933 Say You Saw It in Tjik Tobacco World 53rd year 1 10 53rd year THE TOBACCO WORLD April 1."), 1933 News From Congress _ -AND Fed El Departments ASSAGE by the Senate of the bill submitted by Senator Black, of Alabama, ])rovidini»- for the thirtv-hour week in all industrial operations, has drawn stron.u" objection from tlie Floridti ci«-ar industry, where the Tampa ei<>ar manufacturers' as'sociation notified Senator Duncan V. Fletcher that the a])proval of the leirislation by (\)n.uress would close everv cigar factory in that city. The Tampa ci-armakers, operating*- on a ])iece- work basis, it was declared, cannot earn enoui^di in thirty hours to su])port themsehes, while exorbitant taxes and other hi,-h costs make increase (»f wa2:es impossible. • • *• 4U In order to proyide relief for this situation, the Senator submitted an amendment exemptim;- ]necework oi)erations from the proyisions of tiie bill, which was rejected by the Senate, howeyer, on tlie contention by Senator Black that its adojition would entirely nullify the whole ])urpose of the legislation since the i)iece- work ])asis would immediately be adopted by eyery manufactiuer oi)posed to the short week. The thirty-hour week bill would ]»rohi])it the in- terstate transportation of any article or commodity produced or manufactured in establishments where any person was employed or i)ermitted to work more than six hours in any day or more than fiye days in any Ayeek. Violations of the proyisions of the act would be punishable by fine or imprisonment, or b(»tli. Ct3 Ct] Ct3 Prompt enactment of legislation to jn'otect Ameri- can industries and wage earners against the dr'struc- tiye competition of imports from depreciated currency countries is strongly adyocated by the foreign com- merce committee of the United States ('haml)er of Commerce. Severe com])otition experienced sometime ago in certain lines of industry and directly traceable to de- ]>r<'ciatcd currencies continues to exist, intcnsitying curtailment of producticm, ])lant shut-ensating charues themselves. "Jn forthcoming tariff and debt neuotiations with foreitrn countries the hand of our (ioverimient will be streiiutheiied by the existence on our statute Imoks of mc'Jisures ade(|uate to keep within the control of the United States the determination and maintenance of those levels of duties needed to assure normal healthy operation of American enterprises," it was held. CJ3 Ct3 C?3 Airreement bv the railroad and motor-truck inter- ests on the broad principles of legislation providinir Feroi)osed legislation would eliminate unre- stricted com])etition between rail and truck lines and ])rovide for the fixing of rate schedules for the latter by the Interstate Commerce C(»mmission, which now fixes the charges of the railroads. The farm organizations are re])resented as .-tn.imlv (»i>posed to any fixing of truck rates, des])ite the fact that unrestricted mot(»r-truck com])etition has already ]>laced many railroads in a precarious position. "Farm urou})s and manufacturers doubtless will ariiue that the authority of the Interstate Commerce Commissi(Hi to i\\ the minimum rates would have the elTect of depriving them of low cost transportation, the lliuhwav Users' C^mference ]u-otested, ''and that the tendency wcnild be to raise motor rates to railroad leveN rather than to redm/e transp(»rtation costs." There is substantially no public demand for regu- lation of truck rates to protect shi].pers against ex- orbitant or diseriminat(»ry <'harges, it was declared. t?3 CS3 Cj3 Abandonmenl of the trade jUMMiiotional work of the De])artment of Commerc' and