/ 11- oi ". "A^ .%' V/«9; ^'" ■ s--^ Ogo 0 \ ••.v^^ ^f^^^^t >s -1 T.^. ^i^'^lMSlr' ," V|^ . 0° ■a'<>f" :V/^?i^l'i{- w - . :^V^ ^\' 0 . II "I . « :#s.. 'v^ V> *>*" «-v ^^-".^ n3^^yo AV" »j. 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 Pennsylvania Agricultural Microfilm 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 PStSNPaAgi89 CONTENTS OF REEL 189 1) The Tobacco world, v. 55, 1935 MNS#PStSNPaAg189.1 2) The Tobacco world, v. 56, 1936 MNS# PSt SNPaAg189.2 3) The Tobacco world, v. 57, 1937 MNS# PSt SNPaAgI 89.3 4) The Tobacco world, v. 58, 1938 MNS# PSt SNPaAgI 89.4 -^ CONTENTS OF REEL 189 (CONTINUED) 5) The Tobacco world, v. 59, 1939 MNS# PSt SNPaAg189.5 Title: The Tobacco world, v. 55 Place of Publication: Philadelphia, Pa, Copyright Date: 1935 Master Negative Storage Number: MNS# PSt SNPaAg189.1 <2112602>*Form:serial2 InputiHHS Edit:FMD 008 ENT: 980724 TYP: d DT1: 19uu DT2: 19uu FRE: m LAN: eng 037 PSt SNPaAgI 53.1-1 90.5 $bPreservation Office, The Pennsylvania State University, Pattee Library, University Park, Pa 16802-1805 090 20 Microfilm D344 reel 153.1-190.5 $cmc+(service 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 1 4 The Tobacco world 260 Philadelphia, [Pa. $bs.n.] 300 V. $bill. $c38 cm. 31 0 Monthly $bApr. 1 936- 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 $pPennsylvanla 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 ,% ^. ^^^%^ IMAGE EVALUATION TEST TARGET (QA-3) 1.0 I.I 1.25 1*5 156 2.8 ■ 4.0 1.4 2.5 2.2 2.0 1.8 1.6 150mm L//

* 'V /^PPLIED_j INA4GE . Inc .J5S 1653 East Main Street .^=1: Rochester, NY 14609 USA _^=^:S Phone: 716/482-0300 .=--=^ Fax: 716/288-5989 0 1993, A(^>tied Image, Inc., All Rights Reserved SOME PAGES IN THE ORIGINAL CONTAIN FLAWS AND OTHER DEFECTS WHICH APPEAR ON THE FILM Volume 55 1935 / JANUARY 1, 1935 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 invitmg package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phi la., Fa. Hanover, Pa. Cincinnati, Ohio AUTOKRAFT BOX CORPORATION ^J^°^* '!'' Chicago, 111. LIMA Ohio Detroit, Mich. Wheeling, W. Va. c + — ^•— Lniiiiiiiniinn' oni XL cnnnn PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHIUA.. PA. 2f)r)HHK 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. 40 CO THE TOBACCO WORLD Vol 55 JANUARY 1. 1935 No. 1 May everyone in the Tobacco Business enjoy a Prosperous New Year. CH'OHDIXd to lopoits rocoived from rotailers and .jol)lK'rs in Philadolpliia, tlio amount of linsiness done during llio 11134 holiday season was the greatest enjoyed in the past iive years, with the exception of tlie business done by those re- tailers who had been indulging in the practice of try- ing to corral the major portion of the sales by advertis- ing extreme cut prices. During this holiday season they were prohibited from using those tactics, thanks to the Code of Fair Competition, and they rei)ort that they didn't do so well this year, but, to olTset their loss, the numy snudl retailers, wlio in previous year< liave been forced to sit idlv bv because thev could no^ meet such com})etition, were able to put forth vigorous efforts to obtain their fair share of the ci2:ar and to- bacco sales, with the confidence that they would not only make a fair profit, but would also be able to com- pete with anyone's else prices. They report a fine in- crease in their sales and are looking forward with renewed confidence toward being able to continue to sell cigars and tobacco products at a profit, with the i-esult that they will be able to meet their obligations when they become due. This is a great change from their previous few years' experience resulting wholly from the established mininmm retail price provisions of the Retail Tobacco Dealers Code. In spite of much publicity to the contrary, it hardly seems possible tlir.f the oflicials of the National Recovery Administration are seriously contemj)lating the abolition of these " life- saving " features of the Recovery program. Cj3 Ct3 Ct3 ■J p. HKKP] is no doubt but that the experiences of ■■■■ rhiladelphia tobacconists were repeated in the BwB other retail markets of the country. The dealers had a happy Christmas for two rea- sons, first, because they had a bigger share of the business than they have had for several years, and, second, because they made a inofit on their sales. To them, the merchandising provisions of the code were most beneficial, particularly as they ai>ply to the main- tenance of price. This fact constrains us to call to your special attention the articles in this issue by Harvey L. Hirst, of the Manufacturers' Code Commit- tee, and William A. Hollingsworth, of the Retailers' Code Authority. Both these articles were inspired by the report of an address by S. Clay Williams, head of the National Industrial Recovery Board. AM not unaware," said Mr. Williams, in the report of his address, *'of the importance in which some groups still hold the provisions of their codes that were designed, inserted and insisted upon as necessary to their chance of pros- perity. And yet, out of the observations I have just made, I raise before you the question of whether the problem of compliance with w^age provisions and the problem of pi-ice-maintenance provisions are in fact I wo separate i)roblems requiring two separate answers (>i- wliother, on the other hand, the two problems are not so closely interrelated that the answer to the first automat ically solves the second for most industries and l)Usinesses to as great an extent as it can ever be solved in any other way or combination of ways. Let us look at that again : I am asking you if it may not be true that when full compliance with wage and hour ])rovisions of codes is established it may not tlien ap- pear that provisions by way of putting floors under juices may not in most industries and businesses be found of no importance whatever. If that is true, as I believe it is, we are exceedingly fortunate, particularly since in so many instances the enforcement of price- floor j)rovisions with fairness to all concerned has been demonstrated to be all but impossible.' Of course, Mr. Williams was not speaking specifi- cally of the tobacco business. He was speaking of industry and business generally. The purport of his remarks, as we interpret them, is that, given proper wage and hour provisions in the retail code for a busi- fu'ss or industry, and seeing to it that these provisions are complied with, it would be impossible for a retailer to do business at a profit without maintaining the prices asked by his competitors. It would seem to us, firstly, that Mr. Williams does not advert to the fact that there art' retailers whose business is built essentially on cut- ting ])rices, whose establishments are advertised and known as cut-price stores. If everyone selling tobaccf> products were in the tobacco business exclusively, it would follow, almost automatically, that the matter of prim maintenance would result from compliance with the wage and hour provisions of the code. But the great loss to tobacco merchants from a lack of ]irice maintenance up to the time of the effectiveness of the merchandising provisions of their code was due to tho price-slashing of tobacco products by those not exclu- sively, or primarily, engaged in selling those products. Then, it would seem to us, secondarily, that if the ac- knowledged good benefits of price-maintenance should automatically follow from compliance with the wage and hour provisions of the code, there should be no reason to eliminate those price-control provisions. They should be allowed to remain as a safeguard of the interests of the hundreds of thousands of tobacco retailers %vho have hailed them as their salvation. The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; Gerald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- able onlv to those engaged in the tobacco industry, $2.00 a year 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. Uphold Benefits of Price Maintenance By HARVEY L. HIRST T is uiit'ortmiato that a proiniiient official of N. 1\. A. has selected this i)articiilar time to tlenuiiiicc i)rice lixiiig in codes. The Cigar Merchandisiiig Plan, alter negotiations with N. R. A. for well over a year, was put into actual effect October 29th last — less than two months ago — and yet, regardless of many obstacles, it shows every evidence of success. Retailers, after barren years of selling tobacco products with little or no margin to meet costs of do- ing business, are totlay interested in selling cigars. They recognize that the Cigar Merchandising Plan gives them protection from the vicious "loss leader" practice, and assures to them a reasonable profit they are justly entitled to. Wholesalers of tobacco products, who for years have had their backs to the wall facing bankruptcy because of the "loss leader" practice, have taken a new lease on life. As one jobber recently i)ut it, "Re- gardless of the cost of policing the Code, it's worth it." It smacks of the "shell game" to have officials of tile N. R. A., who aic imt there to interpret the law, jmblicly denouncing parts of it. If there are abuses in some codes, correct the abuses. There is ample pro- vision in the Act for this, l)ut for officials to denounce what the Act itself permits (under proper restriction and sujjervision) seems to me to place the Government in a position of running out on its contract. How can representatives of the Department of Justice, whose duty it is to prosecute violators, put heart into their work in the face of public announce- ments of the type referred to, and particularly when coming from high officials of the N. R. A. In the Letter of Transmittal to the President, who subsequently approved the Code of Fair Competition for the Cigar Manufacturing Industry, it was pointed out: **This plan originated with the retail dealers ami was proposed by them to the wholesalers and cigar manufacturers. At the Pul)lic Hearing on this Code it was supported by these three groups as well as by representatives of tobacco growers. It now has the approval of the Consumers Advisory Board, Indus- trial Advisory Board, Labor Advisory Board, and Legal Division." It was also pointed out : **At the same time, the use of cigars as *loss leaders* by unrelated business has placed a severe bur- den on persons whose welfare depends on the tobacco business. It is hoped that the establishment of mini- mum retail prices will stabilize emplo>Tnent for this large class of persons who are, for the most part small business men, dependent for their livelihood on this trade." In the speech before referred to, the chairman of the National Industrial Recovery Board suggests: "I am asking vou if it mav not be true that when full compliance with wage and hour provisions of codes is esta1)lishcd, it may not then appear that provisions by way of putting floors under prices may not in most industries and businesses 1^ found to be of no impor- tance whatever.'* And my answer to this is emphatically **No" so far as the tobacco industry is concerned. No one is in a better position than the official be- fore referred to to know of the practices of some com- panies to defeat the jobber and retailer from obtaining even the most meager profit in distributing products of their manufacture. The detail of these practices can go unsaid at this time. ^pdle I do not have the exact figures of employ- ment in the cigarette business, I venture the statement that there are ten retailers of cigarettes to one employee in cigarete factories. If this statement is true (and I'd like to be corrected if it is not) how will the pay- ment of a minimum wage to a tobacco stripper of 25 cents jier hour create prosperity if, at the same time, ten retailers of cigarettes are deprived of their right to make a living equal to that of' the lowest unskilled em ploy eel No one in the tobacco industry better knows the need for protection against the "loss leader" practice than does the retailer of tobacco products. Tobacco products were, prior to Code operation, more subject to this practice than any other form of inerehandise. The retailer knows that ''loss leaders" are the bait used to attract the buyer, and tobacco inoducts, particularly advertised cigars with their re- sale ])rice established in the mind of the consumer, bought daily and several times daily, accomplish this l»urpose much more satisfactorily than other forms of merchandise purchased at reasonably longer intervals. The independent retailer knows too that before the Code, only too often did he see neighl)ors and friends who should have patronized his store obtain their needs from the cut price dealer who used the tobacco product as a bait to attract the buyer, and that this same neigh- bor or friend loked upon him as a legalized highway- man when he asked a price on tobacco products that assured him but a modest profit, having in mind the fact that the same product could be purchased at a cut l)rice store at a price that would net the average re- tailer a loss or no profit at all. There unquestionably exists in Washington today an element bent on destroying the benefits of price maintenance provided for in the Code of Fair Compe- tition for the Cigar Manufacturing Industry. You, Mr. Retailer; you, Mr. Wholesaler, and you, Mr. Manufacturer, know what this means to vour busi- ness. If the merchandising provisions of our Code are done away with, I firmly believe you may look forward to a campaign of cut-throat competition in the distribu- tion of tobacco products such as you have never before seen. Congress is to be in session shortly and consider- ation will be given to the future of the N. R. A. Let your Congressmen and Senators know what the Code of Fair Competition for the Cigar Manufacturing In- dustry means to your business and, above all, stand staunchly back of those who are fighting your battle to the end that justice mav be vours. Th€ Tobacco World All Tobacco Products Gain in November II K following coni])arative data of tax-paid ])roduets, indicated l)y the monthly sales of staini)s, are issued by the Bureau. (Figures for N<)veml)er, 1934, are subject to revision until published in the annual report. — November — Producis 1934 1933 Cigars (large) : Class A ... No. 378,456,240 334,280,095 Class B ... No. lU,107,i)87 4,153,373 Class V, ... No. 70,585,676 69,487,250 Class D ... No. 5,866,756 6,188,011 Class E ... No. 1,056,887 1,238,594 Total 466,163,546 415,347,323 Cigars (small) No. 16,103,613 16,587,200 Cigarettes (large) ...No. 246,704 371,150 Cigarettes (small) ...No. 9,727,429,603 6,835,038,693 Snuff, mfd Lbs. 3,125,358 2,612,169 Tobacco, mfd Lbs. 24,643,494 22,794,824 Tax-paid jn'oduets from Puerto Rico (not included in above statement) were as follows: — November — Products 1934 1933 Cigars (large) : Class A . . . No. 6,380,250 5,330,050 Class B . . . No. 337,850 426,200 Class C . . . No. 86,250 137,400 Class D . . .No. 500 Total 6,804,350 5,894,150 Cigars (small) No. Cigarettes (large) ...No. Cigarette^ (small) ...No. 100,000 50,0(K) 400,400 300,000 70,0(Xi 200,000 Tax-paid products from the Philippine eluded in above statement) were as follows s (not in- • a Products — November — 19.34 1933 Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E .... No. 22,585,560 119,520 70,332 2,(mi 1,585 23,240,020 17,707 47,890 700 130 Total • • • • 22,778,997 23,306,447 Cigarettes (small) ...No. 306,440 137,720 TOTAL WITHDRAWALS FOR PREVIOUS NOVEMBERS 1920 668,060,015 1927 654,164,577 1921 615,251,258 1928 630,530,692 1922 679,300,302 1929 622,938,344 1923 650,687,413 1930 528,127,899 1924 601,412,539 1931 477,458,157 1925 598,478,129 1932 419,173,428 1926 654,975,106 January j, igjS Statement of Collections for the Month of November Novem,ber Source of revenue 1934 1933 Cigars $1,274,617.27 $1,170,125.29 Cigarettes 29,184,985.60 20,508,263.32 Snuff 562,564.42 470,190.48 Tobacco, chwg. & smkg.. 4,435,895.27 4,103,196.84 Cinarette p a p e r s and tubes 53,982.24 61,648.37 ^liseelhuieous, relating to tobacco 277.14 185.60 Detail of Collections From Tobacco Sale Tax Total from Month of Jidy 1, 1934 Commodity November (fiscal yr. 1935) Tobacco (tax effective Oc- tober 1, 1933) Processing tax $2,569,855.09 $11,966,606.22 Import compensating taxes 13,455.76 108,451.62 Floor taxes 522.18 15,694.71 Total . $2,583,833.03 $12,090,752.55 TO DISCUSS PRICE CONTROL CLAY WILLIA:MS, chairman of the National Industrial Recovery Board, today announced that beginning January 9, 1935, tlie board will establish an entirely new procedure in itself conducting a scries of open hearings at which evidence will be collected on the operation of major code pro- visions and the advisability of amendment or continua- tion. Price control and price fixing will be the subject of the first hearing. Announcement of the topics and dates of the other hearings will be made in the near future. Mr. Williams said that the iMuud has received an accmnulation of evidence and opinion on the subject of price control indicating that code provisions for mandatory costing -ystenis designed to set minimiun ])rices, and permanent schedules of j>rices have not op- erated in tlie best interests of the industrial structure. Much of the information before the board tends to show that such provisions have not accomplished the de- sired puri>ose and have proved neither workable nor enforceable. In order that full consideration may l)e given to all pertinent facts on this subject, tlie Imard will hold a ]mblic hearing on January 9, 1935, Washington, 1). C, at which all industries operating under such provisions and other interested parties will be given an oppor- tunity to be heard. The hearing will l)e conducted by Mr. Williams as chairman of the board, with all members of the board present. MIA. pHIbADEli BAYUK'S ANNUAL CONVENTION OLI.nWIXd an annual custom, Bayuk sales- nu'n t'nuu all over \\w country l)Oiian to arrive at hea(l4uarttM> on IKreniber 27th to attend the enni]»anv convention, endinir in a dinner at the Hotel Adeli)hia on Saturday nij-Jit, the 29th. Aj)i>ropriate addresM's were made by II. S. Hothschild, president: A. .los. Xev/man, vice-pn'sident in char^:e of sales; II. P. Warman, vice-]nesident; Louis A. Kramer, vice-t>resident : and Harvey L. Hirst, treas- urer. . . . The Sunshine Clul), an oriranization of emi)loyces. had it> annual holitlay jollification the Saturday het'ori' dnistmas, when there was an in- formal dance. Santa Clans in the rotund i)erson of Frank A. l)al>ki, the company's shijiper, dispensed L»-ifts. ... A recent visitor was W. I>. Poinsett, of Mvers-(V)X, distrilmtor in the l)ul)Ue, which attacked each mem- ber of his family in turn. . . . Sol Bornstein, middle western divisional manager, with headipiarters in Ohicaico, was a holiday visitor. . . . Dale I^ Bolt, of Rielmiond, Va., who looks after the southern territory, was also at the Third and Brown headquarters of El Producto and La Azora duriiiic the yuletide, as was Joseph Schulick, jiresident of Schnlick-Taylor, the dis- tributins? house in Wheelinu, W. Va. At John Wagner & Sons head«piarters, we learned that the business enjoyed by that old established house during the holitlay >ea>on just past was the Iwst in many^years. The Komeo y Juliet a im])orted brand enjoyed a iiarticularly good demand and sales were far ahead of the same season of last year. Dealers throughout the city, particidarly the progressive de- partment stores, hotels ant busy right up to the last minute in order io meet the demand for their brands, and stocks were depleted to such an ex- tent that the usual shut-down which occurs through- out the cigar manufacturing industry immediately after the holiday rush is over will not be prolonged any longer than necessary this year. Harold D. Christian, well known in this territory as sales representative of the Congress Cigar Com- ])any, made a return visit here a few days ago and renewed acriuaintancea in th© tn^e. The La Palina brand is being distributed by T. J. Abramson, South Fifth Street jobber, and the excellantes size (now in the two-for-fif teen-cents class) is enjoying a s|)lendid demand. At Yahn & McDonnell headtpiarters, it was con- firmed that business was really good during the past month and more cigars were sold than for the same period in the past several years. They also report that a very much lietter feeling was in evidence among the retailers in this city who did not hesitate to order stock in nmch larger »|uantiti<'s than in former years, with the confidence that they would be able to dis- pose of them at a |»rofit. Among the many brands which enjoved this increased demand this season, to men- tion a few, were Corona, Antonio y Cleopatra, Medal- ist, Garcia y Vega, Had(h>n Hall. i)ptimo, Blackstone, As You Like It and Marcelh». Among smoking to- baccos, D. & M. smoking mixture and Briggs smoking tobacco receive honorable mention. Tlu Tobacco World ^\JlD ^J^L?i PA-n^h)^ o o o u M k # Roscoe Turner flew from London to Australia— 11,323 miles — in 93 hours and 7 minutes! When questioned about his smoking. Colonel Turner said: "A speed flyer uses up energy just as his motor uses 'gas'— and smoking aCamel gives one a 'refill' on energy. The way I notice this especially is that after smoking a Camel I get a new feeling of well-being and vim." LEAF-TOBACCO EXPERTS AGREE: Camels are made from finer. More Expensive Tobaccos— Turkish and Domestic — than any other popular brand. " A fi^ ^ei- .^'' ARCHrrBCT. W. R. Ballard reports aa follows: "Whenever I feel list- leM, a Camel restores my energy arei my mind is clearer . . . more alert," V(Mtf art invited to tune im en the Aff'Star CAMEL CARAVAN jiuttiinKg WALTER O'KEEFl ANNETTE HANSHAW GLEN GRAVS CASA LOMA ORCHESTRA TIIKSDAY 10:00 P.M. E. S.T. 8:00 P.M. M.S.T. 9:00 P.M. C.S.T. 7:00 P.M. P. S.T. THURSDAY 9:00 P.M. E. S.T. 9:30 P.M. M.S.T. 8:00 P.M. C.S.T. 8:30 P.M. P. S.T. Ovtr C0ast-t9-C9ait W ABC-Columbia Network MRS. LANGDON POST, young society leader: "When tired, I find that smoking a Camel gives me a "lift,* and I feel fresher afterwards." PflYSICAL INSTRUCTOR. Charles Adams: "A Camel quickly gives me a sense of re- newed vim. And Camels never interfere with healthy nerves." ^m3? zLK. r^JTlght, 1»S5, B. 3. BrrtMkk TobM<» CAMEL'S COSTLIER TOBACCOS NEVER GET ON YOUR NERVES! ■ \ January t, /y,'j Resume of Code Accomplishments By WILLIAM A. HOLLINGSWORTH Chairman, National Code Authority for Retail Tobacco Trade DEALS, if tlioy survivo the liigli mortality of \oiitli and adok'sfOiR'O — which few of them do * — turn, like lailpoles, into a ditferent shape as they ai»proaeh maturity. An ideal, hy the time il is full urown, has become an idol; and in this new form, tliouiih il makes less stir in the world, it often wields tremendous ])ower. " Tills bit of philo>oi>hy mirrors the history and the present status of Ketad Tol)acco Deak-rs of America. The tale of the A->ocialion, from its incejition to its present station, would furnish lively reading, but since things yet unilone reipiire urgent attention, we will not jiause to relate the ronumce of its adolescent ])eriod, i)Ut will move on to the conseroJect soon biought to light the necessity of truly national supp<»rt and an inexiH-rienced orga- nizing connnitlee was faced with the ciumnand to oi'ganize or regiment an industry end)racing eiuht hun- dred thousantl units, before recognition by the Gov- ernment could V)e accorded it. How this was accom- plished is also a rather long >tory, therefore must await time and leisure. In the interest of lirevity, it nuiy l)e said persever- ance i)ermitted the National Association to appear at the i)ul)lic hearing on its Code representing a unani- mous industry. This wa> a situation unitpie ir. the wlnde exi)erience of N. h*. A. The conunittees under- taking the various phases of n«'gotiations for the Code can without ajwlogy look with jnide upon its work, for a Code was attained wirn-h brouiiht real benelits to all concerned in tlie tobacco industry: workers, em- ploy) is and consumers. The trials and struggles of the negotiations were many and the burden of their troubles were not light- eiied by a lich and politically powerful o]»position from outside the trade. Despite this irreconciliable o])posi- tion, wliat is perhaps the liest Code of all those dealing with ov<*r-counter sales was brought into being and to- day it is the rightful ]>ossossion and lawful property of all those who sell tobacco ]»roducts. The connnittee's negotiations completed, and this phase of the association's Inisinesa successfully con- summated, the finished Code was delivereliance. And, as a rovem(»nt to the administrator. The Retailers' Code Authority has carried on suc- cessfully, scoring victory after victory in the name of compliance and can, at this hour boast of a clear un- tarnished record as well as almost perfect compliance. An enviable record as Code Authorities uo. A fur- ther degree of perfection would be entirely dependent UDon improved X. 11. A. machinery or making more efficient the Code Authority by placing broader power in its hands. Three times have the fair trade practice provisions of the Retail Code been tested in the courts, and everv time a complete vindication of the Code has attended the decisions of the judires. These favorable decisions should serve as valuable precedent in cases yet to be tried, also fhey should point a warning to all future violators and recalcitrants. The retailers have moved ahead this ]):\<\ year. Proirress has l>een made in both irross and net. and if the incoming y«'ar deals a few more kindly favors, per- haps they may reach the state of their hearts' desire^ — profit for their industry and labor. One mi gilt term the coming year as the possible dawn of a new day for th<' retailers. But, this pre- dict icm should be accompanied by a hope that tlu- new dav on the horizon doesuM dim their memory of the past or blind them to the ]»ossible recurrence of their past and e<'on(»mic |)light. It is not amiss to say at this point that the National Recovery Act is going to be amended during the coming session of Congress. The retail dealers will have to l»e as aggressive and alert in protecting their interests as they have been in securing a Code. I want to say right here with all the force at my command that what they have they can hold only so long as they continue to support the sound principles of the agency which blazed the trail to their present estate. Their further advancement will depenil wholly upon their willingness to organize anend upon its merchandising provisions for the security of their small invested capital and the livelihood of their families. Here is (Uie Coiemen market for American tobacco. As reported by American Consul (J. K*. Willson, and made public by the Tobacco Divi- si<»n, Dei)artmeiit «d' Conunerce, arrivals of Ameriji'an leaf toi)acco totaled 58(5 iRjgsheads, consisting of Ken- tu uranted the Cnbaii product by the new Keeijtroeal Trach^ Treaty, effective Septem- l>er o, 1!>."U. Tlie value of tobacco and tobacco prod- uct ex])orts to the rnited States durinu: the first ten months of th«' currtMit year is ]M-ovisionally ])laced at $<),4()().()()4. a> auainst i|i(),()!>7,471) for the correspond- inu VXVA period, rnstemmed wrapper leaf, and all stenmied leaf, are down l)oth in (piantity and value, while small increases have luH'n noted in volume and %'alue of exports of cuttini;s and cii^ars. The value of unstennned tiller u'oinu,- to the United States is run- nini»- sliyhtly ahead of last year's iiii:ures, owin<»" to better i)ric('s in the tobacco markets, but the volume is down. The new i)referential duties uranted Cuban cigar tobacco are etfective until tlie cii»:ar tobacco adjust- ment proi»ram is abandoneounds. Prorated for the first ten months of the yuar, the quota is found to be ir),144,4r)() pcuinds. On the basis of the statistics of the Tobacco Conmii^^sion above, the unstemmed equivalent of tobacco which has left Cuban ports for ilic Unitecl States between January 1 and October 'M, 11K54, nuiy 1^ estimated, as explained be- low, at i:i,.S.S0,4J>H ]»ounds. If on*- arce])ts this figure, expt)rts to the United States are evidently running about 12 i>er cent. l)elow quota allowances (total ex- r)orts amounting to HSXU per cent, of the ]trorated limit), (have doubts are expressed as regards the possibility of filling the (piota without depressing the market, which is apt to result irrespective of whether shiiunents are cleared tlirough customs, or bonded pendiug demand in the new (piota year, it luiving l)een demonstrated in the case of sugar and other ])roducts that purchasers discount withhehl supplies as well as oversupplies. The unstemmed equivalent of Cuban tobacco im- ])orted into the Inited States, by the treaty, is com- puted on the basi.s of the net weight (as determined for duty assessment) of unstenimed tobacco, and 133 per cent, of the net weight of other tobacco and tobacco products. Based again on the Tobacco Commission's statistics, the approximate cxpoits of 1.3,330,408 I>ounds (the unstemmed etpiivalent mentioned previ- ously) were airived at as follows: The unstemmed w:ai)per and filler statistics, furnished in kilograms, were converted directly into American ]>ounds at the rate of 2.2 pounds per kilogram. The stenuned leaf, cuttings aner of leading brands of Habana ciuars has made it possible, according to a Cidum ex- pert for some other foreign nuuiufacturers of cigars, with fewer scruples, to ca|)italize the inference by making and selling as Habanas, cigars which may in some instance not contain Habana filler. This filler nuiy be of Cuban origin, though not necessarily soj l)ut it is often not lei^itimate Habana tobacco, bv which is generally meant tol)acco from Pinar del Hio Prov- ince. It is locally recognized that a large proportion of Cuban tobacco must be exported unmanufactured, but it is also insisted that a deiiumd for legit inuite Habana cigars exists, and should not be l(»st to the illegitimate trade. JAMAICA TO GROW VIRGINIA TYPE A committee appointed by the Government to in- vestigate the tobacco industry of Jamaica has reported its findings to the Legislative Council. Based upo)i a commercial project for the growing and curing of Virginia-type tobacco undertaken at Cherry Garden during the season 1933-1934, in w hich those so engaged are of the opinion that Virginia-type leaf can be grown, cured, and successfully marketeeen offset by increases in i)roduction, consequently the margin of profit has Iwen reduced in nuiny small businesses and bankers will not give loans for expan- sion. »» Ct3 [t] Ct3 ONTINUATION of Oovernment fixing of hours and wages may bring about a demand from manufacturers that the Government also determine the "fair return" on investment to which an industry is entitled. The steadilv increasing demands of labor, if sup- ported by the Administration, it is declared by busi- ness executives, will impose an unl)earable burden it Just Enough Menthol to Cool and Soothe Without Destroying The Natural Tobacco Flavor TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION -^^^0)%^. OF UNITED STATES ""^mj^^ JESSE A. BLOCH. Wheeling. \V. Va President JULIUS LICHTENSTEIN, New York. N. V Vice-President WILLIAM BEST, New York. N. Y Chairman Executive Committee MAJ. GEORGE W. HILL, New York. N. Y Vice-President GEORGE H. HUMMELL. New York, N. Y Vice-President H. H. SH ELTON. Washington, D. C Vice-President WILLIAM T, REED. Richmond. Va Vice-President HARVEY L. HIRST, Philadelphia. Pa Vice-President ASA LEMLEIN. New York. N. Y Treasurer CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director Headquarters, 541 Madison Ave., Mew York City RETAIL TOBACCO DEALERS OF AMERICA, INC. WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y President CLIFFORD K. DAWSON. Buffalo, N. Y Executive Vice President JAMES C. THOMPSON, Chicago. Ill Treasurer ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS. Kew York City President MILTON RANCK, Lancaster. Pa First Vice-President D. EMIL KLEIN. New York City Second Vice-President LEE SAMUELS. New York City SecreUry-Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN. 180 Grumman Ave., Newark, N. J President ALBERT FREEMA.V. New York. .V. Y First Vice-President IRVEN M. MOSS. Trenton, N. J Second Vice-President A. STERNBERG, Newark, N. J Secretary RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA MORRIS LEVITONE •• President SAMUEL MAGID, 2001 N. Mervine St., Philadelphia. Pa Secreury THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS, INC. E. ASBURY DAVIS, Baltimore. Md President JOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y Secretary GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION JOHN F BROWN •• President HERMAN H. YAFFE, 301 Fox Building, Philadelphia, Pa. Secretary upon industry, particularly if tlio Administration p:oos through with its plan for the stabilization of employ- ment by })roviding an annual, rather than an hourly wage. Labor, on the other hand, charges the industrial- ists with attempting to set up a smoke screen by de- ])leting their resonrces througli dividend payments and transfers of earnings to inoperative funds, such as de])reciation accounts, and blaming code wage rates for their "poverty." As a solution of the difficulty, it has been sug- gested that the Government determine the fair return for various industries, as it does for j)ublic utilities, and thereon predicate tlie wages to be i)aid workers. I'liloss action of some such nature is taken, it has lu'eii liinted, many manufacturers, w'eary of fighting the handicn])s imposed ])y de])ression, labor and the XRA, will seriously consider closing their plants and therel)y nullifying the gains in employment which have thus far been made. ^^.^S^B ^^.^2^^ S^^^^^ Cj3 Ct3 Cp EMBERSHIP of the labor complaint board of the cigar manufacturing industry, created under tiie eode, has l)eeii api)roved by the Na- tional Industrial Kecovery l^oard. The committee will be headed by Samuel L. Kuhn of New York, as impartial chairman, and will consist of J. F". Culhnan, Jr., Webster Eisenlohr, Inc., New York, representing the machine manufacturers; Wal- ter Popper, E. Popper k ('oiui)any. New Y'ork, repre- senting tlie hand manufacturers; I. M. Ornburn, pres- ident "of the Cigar Makers International Union, Washington, represent] ig labor, and Robert E. Rine- hard, New Y'ork, representing the recovery adminis- tration. DON'T MISS FLUE CURED CONTRACTS EXTENDED ECRETARY of Agriculture Henry A. Wallace has extended into 1935 the two-year adjust- ment c<»ntracts signed last winter by producers of flue-cured tobacco (Types 11, 12, 13 and 14), urown in Viririnia. North Carolina, South Carolina, Georgia and Florida. An administrative ruling (No. 37) accompanying the notice of extension of the con- tracts makes optional certain modifications in the mn- tracts. The notice of extension ]>rovides that the contract shall be continued in 103.") with the same force and effect as in 1934, with the following changes: (1) The tobacco acreage allotment and the initial l)roduction allotment are changed from 70 per cent, of the base tobacw acreage and production to 85 per cent. (2) The reduction is one-half as large as it was in 1934 and the rates of the adjustment and deficiency ])a>Tnents are reduced one-half. The rate of the ad- justment pavment in 1935 will be (P i per cent, of the net sale value of the crop and the rate of the deficiency pa^^nent is one cent per iwund. (3) The rental i)ayment, which will remain at $17.51) an acre for eaeiracre rented to the Secretary, will be nianutT (lbs.) : All U. S 34,488,251 robacco Mfd. (lbs.) : United States.. 287,070,479 Philippine Is.. . 28 85,079,017 United States. . Puerto Rico . . . Philippine Is.. . Total 555,740 1,460,438 ■1 J -4 Class B 4,410,760 mo 1,674 141 United States. . Puerto Rico . . . Total 287,070,507 1,460,297 Philippine Is.. . Send Two Dollars, with the coupon below to The Tobacco World, 236 Chestnut St., Phila., Pa., and get your copy twice a month for a year. Total 37,554,031 3,546,670 ""2,356 4,408,586 Class E— United States. . Puerto Rico . . . Philippine Is.. . 1,277,844 402 Total 3,549,020 4.279.633,106 57,252,575 185,763,625 1,278,246 ^amc— — — ~ — ' Total All Cla^^scH- 211,571.013 l,259,0ai 14,981,044 United States. . Puerto Rico ... Philippine Is.. . street rso. — "■ P. 0. State Grand Total.. January t, 1935 4,522,649,306 227,811,057 t3 Establithed 1886 "BEST OF THE BEST 99 'i^^^l^ A. SANTAELLA & CO. Office. 1181 Broadway, New York City FACTORIES: Tampa and Kep West. Florida OUR HIGH-GRADE NON-EVAPORATING CIGAR FLAVORS Make tobacco in«Uow and smooth In characteit and impart a most palatable flavor FUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BBTUN. ABOMATIZEB. BOX FLAVOMS. PASTE SWEETENEKS FRIES 8l BRO., 92 Reade Street. New York ^mm^iiiuavmmmuMy^ Classified Column The rate foi thit column i* three cents (3c.) a word, with a minimum charge of •eventy-five cents (75c.) payable •trictly in advance. jnc Yf.\ni a<^i-\ru\\n POSITION WANTED CIGAR S.\LESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large following. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON Automatic Machines, wants a position. Also instructs beginners. Address Box No. 558, "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to restaurants and cafe trade. Would like to specialize in 5 and 10 cent cigars under my own brand. Manufacturers communicate with me in reference to worth-while line. Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y. FOR RENT 30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A 3-story and concreted basement building adjacent to P. R. R. freight station in York, Pa. Building of sufficient strength to accom- modate at least 50 cigar-making machines per floor. See A. Kauff- man & Bro., York, Pa., for inspection and details. HAVANA CIGARS BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT LOVE— Adopt as your slogan, "Kiss your beer, but lore your ci- gars." Specially those Havana blended, "Good to the last Puff," manufactured by A. Ramirez & C^o., Post Office Box 1168, Tampa, Fl*. Write them for particulars today. Tobacco Merchants' Association Registration Bureau, 341 Madison Ave. NEW YORK CITY Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Hegistration, (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 menibers 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 reiwrting 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 (ID) additional titles necessarily reported. REGISTRATIONS STREAMLINE:— 46,392. For all tobacco pnulucts. Harry I'ro- chaska, New York, N. V.. December 12, 1934. ( (Jrigitially regis- tered June 9. 1922, for pipes, cigar and cigarette tubes and smokers' articles, by Adolph Frankau & Co., Inc., New York, X. Y., prede- cessors to tlie registrant.) LASSO: — 46,393. For cigars. Consolidated Litho. Corp., Brooklyn, X. Y.. Xovember 1, 1934. CROWN CREST:— 46,394. For cigars, cigarettes, cheroots and to- bacco. Consolidated Litho. Corp., Brooklyn. X. Y., .\ugust 27, 1934. (Originally registered September 0, 1913, by .\mcrican Litho. Co.. New York, X. \'., whose cigar label department was taken over by the Consolidated Litho. Corp.) ARDOVA: — 46,396. For all tobacco products. Consolidated Litho. Corp., Brooklyn, X. Y., October 29, 1034. (Originally registered .August 4, 1904, by American Litho. Co., Xew York, X. Y., whose cigar label department was taken over by the Consolidated Litho. Corp.) TRANSFERRED DOUBLE VALUE:— 25,128 (Trade-Mark Record). For cigars, ci- garettes and tobacco. Registered .August 1. 1901, by L. Levy & Son. Xew York, X'. Y. Transferred by Schlegel Litho. Corp., Xew York, X. Y., who had acquired all the brands of L. Levy & Son by a blanket assignment, to W. J. X'eflF & Co.. Red Lion, I*a., Decem- ber 14, 1934. TOBACCO SALESMEN UNITE MESSAGE from the office of Abe Brown, Newark, N. J., (jrand National President of the National Board of Tobacco Salesmen's Associations: "1934 saw the revival of To- bacco Salesmen's Associations throughout the coun- try. Once again are salesmen united for the common purpose of promoting the welfare of the industry in w^hich they earn their livelihood. Branches are lo- cated in New York, Newark and Trenton, New Jersey, Baltimore, Maryland, and Washington, D. C. The National Board contemplates organizing branches in Boston, Pittsburgh, Philadelphia, Richmond and St. Louis. We will cheerfully receive requests from salesmen in other cities for a T. S. A. Branch. The Baltimore and Washington Branches have made no- table progress. ** National Board Convention will be held in the Hamilton Hotel, Washington, D. C, on January 4, 5 and 6. I am thankful for the co-operation of such men as Albert Freeman, Joe Freeman and Ben Las- chow of New York, I. A. Bergman, Ferdie Schwa bacher and Harry Sternberg of Newark, Ad Hanauer Elmer Brinlev and Robert McCormick of Trenton Abe Blumberg, William Leavey and William J. Cleary of Baltimore, and Gordon Harris, Donald Mitchell and Michael Rosendorf of Washington. "Counsellor Zinbard heads the legal department of the National Board." JANUARY 15, 1935 L.iPRARr ? ■-.:■ 1 V B B JAM. 19.i5 IE 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 whu have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phila,, Pa. Hanover, Pa. Cincinnati, Ohio AUTOKRAFT BbX CORPORATION J;;;„^,; LIMA OHIO Detroit Mich. A Nalioi\Wtdc Service Wheeling, W. Va. iiiiiiiiiiiiiiiiiiiiiiiiiiiHJTTmTmTr PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST., PHILA.. PA. After all-"^ jiothing satisfies lil 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 Regardleu ©♦ PtU* THE BEST CIGARS AftE rAOLSD f^ WOODEN BOXES THE TOBACCO WORLD Vol. 55 JANUARY 15. 1935 No. 2 EMEMBER that old story about the driver of a team of dray horses who was such an expert with the whip that he could pick off a fly from any part of either one of the animals as he drove along! He was showing off his accomplishments one day to a companion riding with him. ' ' See that fly up near the shoulder of the off horse! Watch me get it, ' ' he said, and mth a dextrous flick of the whip, the fly was no more. In the same w^ay he snapped them off various parts of the near horse, to the amazement of the man riding with him. As they lumbered along, this companion noticed a hornet's nest hanging from the limb of a tree which they were about to pass. "Let's see what damage you can do that," he said. **Not on your life!" answered the driver; "I don't fool with them ; they 're organized. ' ' ^a^^^m ^k^L^ ^hfi^H Ctj Ct] tt] N OLD STORY, perhaps, but it comes inevita- bly into the mind when one considers the bene- fits of organization, such as were in evidence, for instance, at the recent meetings in Wash- ington at the hearings on the merchandising provisions of the Cigar Code and the price-fixing rulings on ciga- rettes. Here were groups of the three big departments of the tobacco industry — the manufacturers, the whole- salers, and the retailers — not fighting against each other but putting up a united front for what the three groups were convinced was for the best interests of all. That was a fine example of organization, of co-opera- tion, of teamwork, which probably could not have hap- pened a short year ago. The manufacturers are organ- ized. The wholesalers are organized. The retailers are organized. The tireless leaders of these three groups who worked so unselfishly to bring about this organization of their forces while preparing codes which would be acceptable to all of them and to the Government, must now feel that thrill which comes from the accomplishment of any hard task. For it was a hard job to bring the multitudinous branches of the industry together. Cj3 Ct3 Cj3 HERE there is no organization, those who are in a given business or profession think of their competitors as being equipped with horns and cloven hoofs. As soon as they get together, for some common purpose, they learn that these competi- tors are regular fellows like themselves. They get to know one another and to realize that they are all after the same thing, the privilege of making a respectable livelihood. It is certainly inspiring to watch the men of the tobacco industry at Washington fighting shoul- der to shoulder in a common cause against the loss- leader policy of price-cutting from which the hitherto totally unorganized retailers were the principal suf- ferers. It would seem, too, that the most encouraging feature of the outlook of the industry arises from the fact that all branches of the industry are now thor- oughly organized, with strong leaders upon whom the rank and file may implicitly rely. CS3 Cj3 Ct3 HE FIFTEEN-DAY extension of the minimum prices for cigarettes covers only a short time, but William A. Hollingsworth, chairman of the Retail Code Authority, backed by petitions from 125,000 retailers, is convinced that the order will continue in force as long as the National Industrial Re- covery Act. He bases his belief on the factual proof of the benefits of this price-setting as set forth in the report submitted to NRA. It was to enable the officials to digest this report that the extension was made until January 26th. Cjl Cj3 Ctj ODAY, quoting Secretary of Commerce Daniel C. Roper, there is a better feeling extant in the conmiercial world than there has been in a long time. There are more reasons for this situa- tion than the mere fact that more dollars have flowed into cash drawers during the last twelve months than for several years previously. Despite what the detrac- tors of business may say, trade is not a thing of dollars alone. Sentiment, patriotism and psychology play big roles in it. They are helping to push the clouds away. One reason for the improved situation is that both busi- ness men and their patrons have a better understanding of the national and international situations than they ever had before during the life of this administration. No longer does the impression prevail that the adminis- tration is opposed to the profit system. The under- standing that the administration seeks only to make a fairer division of income and has no intention of de- stroying the capital structure is becoming general. This understanding has been the need of the business world. Certainly money has started flowing more freely into business channels. Capital owners are rapidly coming to realize that the administration recognizes the fact that when the capital tree disappears there can be no more income fruit; and income fruit is necessary to the continuance of our national life and prosperity. The Department of Commerce has openly and frankly throughout the year helped and encouraged all legiti- mate business at home and abroad. This we conceive to be the mandate from our employers, the people of the United States, for the organic law creating the Depart- ment of Commerce directed that trade and commerce should be encouraged. We know that sound, profitable business is absolutely imperative to the welfare of the nation. We have and will continue to court the advice of sound business men and women. r.«iTn ^ ,^^^9 ^VORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; ill. «„i ♦ tu ' ^^"^f':>'- Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- Def*.mhJ^r?7i^ *"???? o" ^^^l^i^^** «u/^^".*l'^' ^^"^ * y"*" ^^ "ot* » ^^py; foreign. $3.50 a year. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. Cigarette Mark-up Extended Manufacturers, Wholesalers and Retailers Unite in Protest HE National Industrial Heeovery Board has extended to January 26th inclusive, orders rec- ou:nizinu: an emergency due to destructive price cutting in the wholesale and retail cigarette trades and tixing nuninium nuirk-ups. The extension was granted in order to provide additional time for re- view of a survey by the XKA Research and Planning Division of conditions in the cigarette trade. The orders are aimed at retail stores not primarily ens^aged in the retail to])acco trade where cigarettes are used as "loss leaders", thereby imperiling small enterprises and endangering the maintenance of code wages and working conditions. The total percentage to be added to the whole- saler's purchase price after deductions of all discounts must be not less than 3.1 per cent, in the case of sales to retailers and 2.1 per cent, in the case of sales to sub-jobbers. The minimum retail price of cigarettes of which they manufacturer's list is less than $5 per thousand shall be the manufacturer's list price plus 5V4 per cent, thereof and the minimum for other cigarettes shall be the manufacturer's list price plus 61/2 per cent, thereof. Following are some of the highlights in the ad- dresses made by tobacco men at the meetings in Wash- ington, beginning on January 9: WiLLL\M A. HoLLixc.swoKTii, head of the Retail Tobacco Code Autliority: "Under the tobacco codes and merchandising plan, cigar production is showing a substantial increase, wages and employment have in- creased, and collections have improved. The price floor is beneficial, and the little tol)acco deab'r bas benefited from the cigar merchandising plan and the cigarette mark-up order. Their only fear is tliat selfish inter- ests and big business may conspire to deprive them of what they liave rightfully gained". Arthur S. ^1?:yer, of the Retail Tobacco Code Au- thority: "Predictions of better prices for the farm- er, increased consumption of tobacco, and a living profit and l>etter living conditions for the storekeeper have been borne out by results under the code. At an early date a retpiest will be made that pipe tobaccos be drawn into the general current of our code.'* 1^ Davto Friday: "The manufacturer stands at the point of keenest competition in the industry. There is no reason why NRA should shrink from raising the plane of competition in the retail tobacco field to the end that destructive price competition should be elim- inated.** Harvey L. Hirst, chairman of the Cigar Manu- facturers' Code Authority: "The merchandising plan under the code does not mean price fixation in the sense it is generally known. There is free and open competi- tion among the manufacturers. The plan has operated to hold down the price of cigars to the consumer. There has been an increase from 85 per cent, to more than 86 per cent, of cigars sold to the consumer for 5 cents or less. With few exceptions, there have l>een no changes in the normal retail prices of cigars under the code. Retailers are taking a renewed interest in the sale of cigars. Results under the code assure a fair break to some eight hundred thousand retail dealers, W'hich means that four million persons and their fam- ilies have been benefited. The manufacturer is re- leased from the strangling effects of the loss-leader practice." JirLiAN J. Hast, of the Standard Cigar Co., Pitts- burgh: ''The code price provisions have enabled inde- pendent retail dealers to compete fairly with chain stores. If the manufacturer is not allowed to set the retail price of his cigars, it will not be possible for him to pay the scale of wages needed to promote re- coverv in this countrv." J. W. Alsop, Hartford, Conn: "It is of the great- est importance to the tobacco growing industry to leave the price maintenance features of the code intact." .Joseph Kolodny, chairman of the National Cod© Authority, Wholesale Tobacco Trade: "Two thou- sand wholesale establishments have furnished work to six thousand additional workers under the code. Among the other benefits are increased salaries, group insur- ance, and better credit accommodations to the retailer. Do not contemplate the reactionary step of abandoning the price provisions which have made these benefits possible. In the extension of the cigarette provisions, the original order remains in force in all its rulings and aniendments, ])rincipal of which are the following: Where manufacturers' list prices for different size packings of the same quantity vary, the lowest price for the given quantity is the required minimum. No free deals or cond)ination sales or anv other device or subterfuges that in any way have the effect of reducing the required minimum prices, are per- missible. In case of sales to consumers located in states ira- j)osing stamp taxes, the amount of all such taxes must be added to the minimum unit price, and prices on mul- tiple sales must be computed on that basis with the permissible discounts deducted." REPRESENT BABY GRAND Fischberg & Helzick, of 261 Fifth Avenue, New York City, have been appointed representatives for the territory east of the Mississippi, and George A. Schmidt. Inc., Insurance Exchange Building, Des Moines, Iowa, have been appointed representatives for the territory west of the Mississippi for the Caldwin Baby Grand Cigarette Roller manufactured by Cald- win Products, Garfield, New Jersey. NEW SIZE CORONA James Hoaney, ambassador for the American To- bacco Company's cigar department, was a visitor in to\^Ti this week at Yahn & McDonnell headquarters, 617 Chestnut Street, and announced a new size to be added to the Corona line of Henry Clay and Bock & Co., front- marked "Corona Perfecto Largas" and retailing at three for fifty-five cents. He also announced that the Bock Panetela would in the future be obtainable in 1/lOth packings as well as in l/2()th8. nt Ttta^ Worn Cigar Manufacturing Industry Trade Practice Complaints Board Set Up WENTY-FIVE manufacturers, located in each of the important territories, comprise the per- sonnel of the Trade Practice Complaints Board of the Code Authority for the Cigar Manufac- turing Industry. The board is made up of a central committee of five, consisting of William Best, vice- president of the General Cigar Co., as chairman; Fred Davis, Schwab, Davis & Co.; A. H. Gregg, American Cigar Co. ; Walter Popper, E. Popper & Co., and Frank Will, G. H. P. Cigar Co. The regional members of the board are: Albany, Tom Horton; Baltimore, William Boucher; Boston, M. Gryzmish; Chicago, Adam Elson; Cincinnati, ^A'alter Ibold; Los Angeles, August Sensenbrenner; Newark, Phil Forristal; Manchester, James P. Driscoll; New Haven, D. Osterweiss; Philadelphia, A. Joseph New- man; Pittsburgh, Julian Hast; St. Paul, A. Worch; Tampa, Manuel Perez; Red Lion, James W. Kelly. These members have all been confirmed by the NRA. Other members whose confirmation is pending are G. Mendelsohn, Cleveland; P. N. Jacobson, Davenport; PVed Hach, St. Louis and Sam Goss, San Francisco. Nominations will also be made shortlv for Detroit and New Orleans. Robert Williams, UM) East 42d Street, New York, is secretary of the board and Sumner Ford is counsel. Samuel Kuhn, executive secretary of the code au- thority, is impartial chairman of the Lal)or Complaints Board, with R. p]. Rineliait representing the NRA without vote, Samuel Blumberg as counsel and Walter Huber secretary. Representing the machine manufacturers is Joseph Cullman, Jr., with the following alternates: Harley Jefferson, H. P. Wurman, Harry Michener and Richard Bondy, Jr. Walter Popper is designated to represent the band manufacturers, although another memlier may be se- lected due to the fact that Mr. Popper also serves on the central committee of the Trade Practice Complaints Board. Alternates for the hand manufacturers are A. L. Cuesta, Jr., Jacob Mazer, J. C. Winter and J. C. Xewman. Ira Ornburn represents labor, with O. R. Strack- bein, K. E. Van Horn, William Brandt and James Sheehan as alternates. There are a great number of unintentional viola- tions of the manufacturers' code, due to imperfect un- derstanding of its teclinieal ramifications, and also quite a number of obviously purposeful violations. The boards will not make public the names of violators at this time as the complaints are being successfully handled and adjusted. Committee to Study Cigar Advertising ILLIAM BEST, vice-president of the General Cigar Company, has been appointed chairman of a committee to make a study of cigar ad- vertising and labeling and to draw up a 8et of rules for the guidance of the industry. The code for the cigar manufactnriiig industry declares in a general way against false advertising, deceptive branding and inaccurate labeling. False Advertimng. — The making or eatising or per- mitting to be made or published of any false, untrue or deceptive statement by way of advertising or other- wise concerning the grade, quality, quantity, substance, character, nature, origin, size or preparation of any product of the trade, having the tendency and capacity to mislead or deceive purchasers or {jrospective pur- chasers and the tendency injuriously to affect the busi- ness of competitors, is prohibited as an unfair method of competition. Deceptivi Brand'mp. — The infringement of estab- lished trade-marks and the use of trado-marks or trade names which will result in deception of the public or enable dealers to perfect such decei)tion is prohibited as an unfair met hod of competition. InaccHiatc LahtUng. — No member of the indus- try shall brand or mark or pack any cigar and/'or cigars in any manner which is intended to or does deceive or mislead purchasers with respect to brands, grade, qual- ity, (plant ity, origin, size, substance, character, nature, material content, or preparation of such cii^ar and/or cigars. The committee headed by ^Ir. Best will determine what standards shall be used to judge when the above ileclarations are violated. other members of the committee are Robert E. Kinehart, of the Frank Presbrey Co., New Voi k adver- tising agents, and Edward Greene, secretary of the National Better Business Bureau. The finest development in the entire history of the tobacco industry was the spectacle of manufacturers, wholesalers and retailers fighting in Washington for the rights of the small independent cigar store man. Jimmry 13, 193$ MIA. i I BAYUK BUSINESS BREVITIES AYUK PHILLIES made gratifying progress in the Virginia territory last year and the out- look for 1935 is even better, according to Henry Gunst, of the Cliff Weil Cigar Co., Richmond, a recent visitor at headquarters . . . Harry Kice and James Taylor, of the X. Rice Cigar Co., Pittsburgh, made a similarly rosy report on the occasion of his visit to Ninth and Columbia Avenue . . . John T. Rynn has been assigned as territorial manager for Bayuk products for the State of Iowa . . . The New Year started out w^ith a bang at Bayuk 's, the flood of activi- ties resulting from the continued popularity of the com- pany's brands, as evidenced by the flood of orders com- ing in from all parts of the country. G. H. P. SALES BIEETINOS ACTORY heads and Eastern branch managers of the 6. H. P. Cigar Co. attended a sales con- ference at the Hotel Benjamin Franklin on January 4th and 5th. It was an annual affair. Strides made by El Producto and La Azora were dis- cussed, and promotion plans for the current year were formulated. Following this meeting Frank P. Will, executive vice-president, went to Chicago to conduct a similar meeting with Dave A. Jenks, assistant sales manager for the managers of the W' est em District. Mr. Jenks had previously covered the New England terri- tory. John Wagner & Sons, Dock Street distributors, report a highly satisfactory business for December and for the year 1934 as well, with their Don Sebastian and imported brands of cigars recording a nice increase for that period. Grabosky Bros., North 2d Street, manufacturers of the Royalist and Amerada, report orders coming in at the present in goodly volume which indicates that retailers' and jobbers' stocks were greatly depleted during the holiday season. Now that time has elapsed sufficient for a check-up up the reports of good business during the recently passed holiday period, previous reports are substan- tiated and the cigar, cigarette and tobacco industry is beginning to receive orders in a larger volume than in previous years for the same period. PIERSON S. FRETZ Pierson S. Fretz, president of the Henry H. Sheip Manufacturing Co., 6th Street and Columbia Avenue, this city, cigar container manufacturers for more than fifty years, died suddenly on January 2, 1935. Mr. Fretz, who was 73 years old, was found in his bed at his home, 101 Summit Ave., Jenkintown, Pa., early in the morning of January 3d. Up until the day of his death Mr. Fretz had been a daily visitor at his office and appeared to be in good health, but on the day of his death he complained of not feeling well and left his office early in the afternoon for his home. Born in Line Lexington, Bucks County, on June 11, 1861, Mr. Fretz spent all his life in or near Phila- delphia. In 1881 he became connected with the late Henry H. Sheip and Harrison Landis in the present organization which manufactures hardwood lumber and boxes. He rose from errand boy to president. In 1888 he was married at Langhorne to Miss Clara Mat lack, who, with a son, Howard M. Fretz, survive him. Mr. Fretz had for many years been an elder in the Presbyterian Church at Wyncote. His clubs were the Art Club, and the Old York Road Country Club. Funeral services were held from the Oliver H. Bair Bldg., 1820 Chestnut Street, at 11 A. M., Satur- day, January 5th. Interment was held privately. Abe Caro, Head Steersman of the Optimo Sales program, visited Yahn & McDonnell headquarters this week with good reports on the progress of this popular brand during 1934. Abe was bidding his many friends adieu on the eve of his trip to the Florida headquarters where sunny skies prevail, and the latest fashions in bathing suits are being shown to the best advantage. Medalist Juniors are now being retailed at ten for twenty-five cents, or twenty for fifty cents, which is approximately a fifty per cent, reduction to the con- sumer, and which is being well received among the consumers. The Medalist factory is also adding a new size to its line to be front-marked **Perfecto", retail- ing at fifteen cents. Herman Abrams, Medalist repre- sentative for this territory, is busy obtaining distribu- tion and sales on this new size. \f£) "i/JA^lD G)^ifi raiJ^J^iJ^ . ^- O \ 'J „^tm& # Roscoe Turner flew from London to Australia — 11,323 miles— in 93 hours and 7 minutes! When questioned about his smoking. Colonel Turner said: "A speed flyer uses up energy just as his motor uses 'gas'— and smoking aCamel gives one a 'refill' on energy. The way I notice this especially is that after smoking a Camel I get a new feeling of well-being and vim." LEAF-TOBACCO EXPERTS AGREE: Camels are made from finer. More Expensive Tobaccos— Turkish and Domestic — than any other popular brand. " ^4-^ ^^ ARCHTTECT. W. R. Ballard reports as follows: "Whenever I feel list- less, a Camel restores my energy and my mind is clearer ... more alert." You are invited to tune in on the All-Star CAMEL CARAVAN WALTER O'KEEFE ANNETI E HANSHAW GLEN GRAY'S CASA LOMA ORCHESTRA TUESDAY 10:00 P.M. E. S.T. 8:00 P.M. M.S.T. 9:00 P.M. C.S.T. 7:00 P.M. P. S.T. THURSDAY 9:«) P.M. E. ST. 9:30 P.M. M.S.T. 8:00 P.M. C.S.T. 8:30 P.M. P. S.T. Over Cea$t-I»-C»4m W'ABC-Colitmbia Network MRS. LANGDON POST, young society leader: "When tired, I find that smoking a Camel gives me a 'lift,' and I feel fresher afterwards." ■wrraoa instructor. Charles Adams: "A Camel quickly gives me a sense of re- newed vim. And Camels never interfere with healthy nerves." ^«^ CwiTlBht. 193S, C.-itpiitj CAMEL'S COSTLIER TOB NEVER GET GET ON YOUR NERVES! fmuary 1$, ipss Questions and Answers on the Code SERIES of questions and answers pertaining to the code for the cigar manufacturing in- dustry has been prepared by the National Code Authority in order to clear up many points concerning- which many manufacturers appear to be in doubt. 1. Question : Do all cigar manufacturers come un- der the Code of Fair Competition for the Cigar Manu- facturing Industry! Answer: Yes. Everv ciirar manufacturer from the largest to the smallest is under the Code. 2. Question: Is a cigar manufacturer under the Code even though he does not sign the Code? Answer: Yes. Under the terms of the National Industrial Recovery Act (a Federal law), everyone is required to abide by the provisions of the approved Code for his industry. Tlic Code for Cigar Manufac- turers was approved bv the President on June 19, 1934. 3. Question: Are all of the provisions of the Code now in effect! Answer: Yes, including the Cigar Merchandising Plan (Article VI of the Code) and the Amendment to the Code (New Article XIII), requiring everyone to place Code Authority stamps on the boxes or con- tainers of the cigars he makes. 4. Question : Do the Labor Provisions of the Code apply to a manufacturer who makes all of the cigars himself and employs no workers! Answer: If a manufacturer makes all of the cigars himself and employs no workers, he is not required to obev the Hour, AVage and General Labor Provisions of the Code. If you are such a manufacturer, take a pencil and cross out all of tlie words under Article III (Hours provisions), Article IV (Wages provisions), and Article V (General Labor provisions) of the Code, as these provisions do not apply to your business. 5. Question: Must a manufacturer who employs one or more workers obey the Hour, Wage and Gen- eral Labor Provisions of the Code! Answer: Yes. If you employ any workers, read the Hour, Wage and General Labor Provisions of the Code carefully, as the provisions apply to your busi- ness. Also study the Hour and Wage Schedule dated August 10, 1934, and read Letter No. 3, dated August 16, 1934. Direct to Consumer 6. Question: What part of the Code applies to the manufacturer who sells all of his cigars direct to the consumer (smoker) f Answer : If a manufacturer sells all of his cigars direct to the consumer (smoker), he is not required to obey that part of the Code kno%\Ti as the Cigar Merchandising Plan (Article VI of the Code). How- ever, if you sell any of your cigars to retailers or jobbers, all of your cigars are subject to the Merchan- dising Plan. If you sell all of your cigars direct to the consumer, take a pencil and cross out Article Yl (The Cigar Merchandising Plan) and Schedule I (also the Cigar Merchandising Plan) of the Code, as the plan does not apply to your business. Bear in mind, however, that the Cigar Merchandising Plan is only one part of the Code. 7. Question : W^hat part of the Code applies to the manufacturer who employs no workers and sells all of his cigars direct to the consumer! Answer : Cross out Articles III, IV, V and VI and Schedule I. The rest of the Code applies to you, in- cluding New Article XIII which requires you to buy Code Authority Stamps. Purchase of Stamps 8. Question : Is every cigar manufacturer required to buy the stamps issued by the Code Authority! Answ^er: Yes. Every manufacturer is required, under the approved label amendment (New Article XIII), to buy stamps and attach them to the boxes or containers of the cigars which he sells. This part of the Code applies to all cigar manufacturers, including those who employ no workers and those who sell all of their cigars to the consumer (smoker). 9. Question: After what date are manufacturers required to place the Code Authority stamps on the boxes or containers of the cigars they sell! Answer : Every manufacturer is required to place the Code Authority stamps on the boxes or containers of cigars shipped from his factory on and after Oc- tober 1, 1934. 10. Question: W^hat does a manufacturer do to get stamps! Answer: He signs the Certificate of Compliance and fills in and signs Form A, the back of w^hich is just like the order for Internal Revenue Stamps. Ap- plications for stamps (Form A), unless sent in with a signed Certificate of Compliance, and with cash, money order, or certified check for the amount of the order, will not be filed. Unsigned applications for stamps will not be filled. 11. Question: May a cigar manufacturer buy less than a dollar's w^orth of stamps at one time! Answer : No. Orders for less than one dollar will not be filled. If a dollar's worth of stamps last more than one month, a manufacturer may continue to use them as long as they last, and when they are gone he may order more. However, so long as the total order amounts to $1 or more, a manufacturer may buy less than a dollar's w'orth of each denomination of stamps. For example, he may buy twenty Class AA stamps for 50 's, and ten Class B stamps for 25 's, etc. — but his total order must not be less than $1. Information Report 12. Question : What does a manufacturer do with the Cigar Manufacturers Information Report (pink Form B)! Answer: A manufacturer who needs more than $6 worth of stamps a year, must fill in and file, every month, this report, which shows his production and use of stamps during the month before. If a manu- facturer needs $6 worth of stamps or less a year, he must fill in and file this report only once a year, the first time between July 1st and 10th, 1935, to cover the period from October 1, 1934, to June 30, 1935. Thf Tobacco WofU Jmmry 1$, igss Retail Code Questions Q. May a retailer distribute cigars to his cus- tomers to enhance their good will toward him. A. The Code expressly prohibits the giving of any sort of merchandise or thing of value where such favor directlv or indirectlv has the elTect of reducing the purchase price to a level below the niininium prescribed by the Cigar Merchandising Plan. The proper way for a retailer to create and retain the good will of his customers is by concentrating on service and quality of merchandise. Q. May a retailer offer a purchaser who is buying cigars through the mail to i)ay the postage charges? A. If payment of tiie ])ostage results in producing a net purchase price whicli is l)elow the minimum for the particular brand of cigars being sold, then this practice is prohibited by tlie Code; tliat is, where a box of twenty-five cigars is offered at list minus 8 per cent., the retailer may not grant any further pecuniary favors in connection with this sale. Q. How is the retailer to be governed under the Code when he has purchased cigars that have not been listed with the National Tol)acco Council.' A. If the retailer has already i)urchased cigars the retail price of which has not been listed by the manufacturer with the National Tobacco Council, he should make every effort to get his manufacturer or have the jobber prevail upon the manufacturer to list such cigars with the Council. If he has not yet pur- chased cigars not listed, the retailer should refuse to deal in such merchandise. Q. How is the retailer governed under the Code in cases where prices have been marked on the cigar box and no price has as yet been listed with the National Tobacco Council? A. The minimum price under the Cigar Merchan- dising Plan becomes effective only by reason of the fact that it has been listed with the National Tobacco Council. The Cigar Manufacturers Code Authority has power to enforce the listinir of these prices. It is the price listed with the Council that is the official and enforceable minimum price. The retailer is governed by only those prices that have been listed with the National Tobacco Council. Q. ^lay a discount of 8 per cent, be deducted in case of box sales of twenty-five or more cigars listed with the National Tobacco Council at less than five cents? A. Retailers may deduct an 8 per cent, discount in case of box sales of twenty-five or more cigars listed with the National Tobacco Council at less than five cents. The notice originally issued by the National Code Authority for the Retail Tobacco Trade indi- cated the contrary. However, the final official explana- tion from the Code Authority office permits the de- duction of an 8 per cent, discount in the case of the above sales and retailers are authorized to engage in this long accepted usage of the trade. Tobacco Salesmen Meet in Washington HE National Board of Tobacco Salesmen's As- sociation held their convention at the Hotel Hamilton, Washington, D. C, on Friday, Saturday and Sunday, January 4, 5 and 6 with National Grand President Abe Brown presiding. When National Grand Secretary Harry Sternberg called the roll the following delegates answered *' pres- ent"— Albert Freeman, Ben Laschow and Joseph Free- man, of New York; Frank Sobel, Abe Brown and Harry Sternberg, of Newark, N. J. ; Robert McCormick and Joseph Murphy, of Trenton, N. J. ; Abe Blumberg, Harry Kohlhepp and William Leavey, of Baltimore, and Pat Carr, Gordon Harris and Donald Mitchell, of Washington. Counsellor Zinbard, of New York, was also present. Minutes of the year's National Board meetings were read and its activities fully reported. Each branch rendered a report of its progress during 1934. The constitution, as revised, was adopted. Reports of the several conunittees were read and acted upon, not the least interesting being the report by Ben Laschow of the excellent results obtained in getting the co-operation of the moving picture studios in featuring cigar smoking by the distinguished char- acters during tlieir silver sheet portrayals. Jimmy Goldwater, although not a delegate but for many years dating back to its inception a diligent worker in T. S. A. and National Board affairs, ren- dered a report telling of the excellent work by Tobacco Salesmen's Associations in promoting the welfare of the entire tobacco industry. **Many trade organiza- tions in everv branch of the industry both national and local," he said, **are direct outgrowths of movements started and sponsored by Tobacco Salesmen's Associ- ations. Our time, our effort and our money were de- to voted to promote the well being of every branch of our industry. ' * Elections resulted in the following officers being chosen for 1935 — National Grand president, Abe Bro\m, of Newark, N. J.; National Grand first vice- president, Joseph Freeman, of New York; National Grand second vice-president, Abe Blumberg, of Balti- more; National Grand third vice-president, Robert L. McCormick, of Trenton, N. J., and Natipnal Grand fourth vice-president, Pat Carr, of Washington, D. C. Also elected were National Grand secretary, Frank Sobel, of Newark, N. J.; National Grand treasurer, Albert Freeman, of New York, and National Grand counsellor, H. P. Zinbard, of New York. Committees appointed were: insurance, Joseph Freeman, chairman, Abe Blumberg, Gordon Harris and Harry Sternberg; finance committee, Albert Free- man, chairman, Robert McCormick and W^illiam Leavey; organization committee, Abe Brown; consti- tution committee, Ben Laschow, chairman, H. J. Kohl- hep|) and Pat Carr trade association committee, Ben Laschow, Albert Freeman, Joseph Freeman, Harry Kohlhepp and Donald Mitchell. . The National Board of Tobacco Salesmen's Asso- ciation plans to continue its efforts to assure that the entire tobacco industry will occupy the exalted position in the national picture it so richly deserves. Salesmen in any part of the country desiring to form a Tobacco Salesmen's Association should com- municate with National Grand secretary Frank Sobel, 72 William Street, Newark, N. J. Thanks to the kindness of D. Emil Klein Co., Inc., Consolidated Cigar Corp., E. Regensburg & Sons, Bayuk Cigars, Inc., Max Schwarz and Harry Blum, the delegates enjoyed many hours of real cigar smok- ing pleasure. The Tobacco WofU yshy-I dont believe I have used a pipe cleaner in three or four weeks Granger leaves no gum in the bowl of my pipe —or moisture in the stem. It burns down to a clean dry ash." • . • in a common - sense package '- 10c the pipe totacco that's MILD the pipe tohacco that's COOL ^^ folks seem io like ii In the manufacture of Granger Rough Cut Pipe Tobacco the Wellman Process is used. . The Wellman Process is dif- ferent from any other process or method and we believe it gives more enjoyment to pipe smokers. . . . // gives the tohacco an ex- tra flavor and aroma ,,,it makes the tobacco act right in a pipe — hum slower and smoke cooler ...it makes the tobacco milder .,,it leaves a clean dry ash — »o soggy residue or heel in the pipe howl LIGGETT & MYERS TOBACCO CO. © \')%\ LiccnT iAcrt> Ca Jmmry /j, 1935 It 1934 Rung Out with Cheer and Hope for 1935 A Tobacco Merchants Association Bulletin Cigar* are the most pleasurable and economical form of smoking. NOTHER year of the depression, or shall we ratUer say, iu the recovery movement, has rolled by with endless activities and epoch- inakmg events; with almost daily develop, ments ot new situations, new problems and new emer- gencies which need hardly be recounted or dilated upon In the tobacco industry, the adoption of the codes tor retailers, jobbers and cigar manufacturers, with the Cigar Merchandising Plan, and the movement in- augurated by tobacco farmers throughout the country lor a reduction of internal revenue taxes on tobacco products, may be mentioned among the outstanding chapters in last year's tobacco history. Tobacco Taxation On the subject of tobacco taxation, we quote from the report ol the Ways and Means Committee, submit- ted to the House of Kepresentatives in June, 11)34, as a result oi the hearings held in Washington : *' These hearings were attended by veritably hun- dreds of growers of various types of tobacco from the btate^s ot Kentucky, North Carolina, Virginia, Tennes- see, bouth Carolina, West Virginia, Ohio, Pennsyl- vania, and Georgia ... ^ j "... there was complete unanimity among all those appearmg, that the tobacco taxes were unreason- able, unfair, and imjust . . . *'Your Committee is of the opinion that the to- bacco tax burden is without reason and unconscion- able ... **It is the conclusion of your subcommittee that a reduction of 40 per cent of all tobacco taxes should bo made. •••••■ *'We feel that this reduction on all tobacco prod- T^^. ^^""^ .^'■^''^ beneficent effect upon at least d,uuu,uuu American citizens, occupying 432,(HX) Ameri- can farms, who are dependent upon the price which they receive for their tobacco for a iiv'ms for them- selves and families.*' Unfortunately, this report was submitted too late m the session to permit action thereon bv the Congres- sional body. But there is every reason to hope that it will receive favorable consideration at the present ses- sion of the Congress. Beference may also be made to State taxation of tobacco products. Due to the existing fiscal conditions m virtually all States, the year just passed yielded more than an ordinary crop of tobacco tax measures. But it is gratifying to note that they were all decisively rejected. State after State has recently gone to gen- eral sales taxes rather than to selective or so-called ** luxury'' taxation, so that general sales tax measures are now m force m not less than twenty-three States. IndicationB of Businass Improyement Many competent surveys of the business outlook holding out bright prospects for the future have re- cently been widely published. Xf However, if the tobacco business may still be, as It always has been, regarded as a fair barometer of general business conditions, then the statistical data ot the tobacco industry will be found unmistakably in- dicative of all round industrial improvement through- out the country. W^hile, as the figures reveal, tobacco and snuff have just about held their own during the twelve months from December 1, 1933, to December 1, 1934 (the December, 1934, figures are not yet available), the increase of over 51/2 per cent, in cigar withdrawals, coupled with the rise of over II1/2 per cent, in cigarette sales, IS indeed most significant. But what is particu- arly noteworthy is the fact that the cigar withdrawals have registered a gain of about 125 mUlions in the last two months (October and November) of the twelve- month period, after showing successive declines during the lour preceding months. Clearly, these are signs of encouragement and clieer; they show new life, new stamina and new vital- ity, and furnish ample reason for the hope that 1935 may bring complete recovery and renewed prosperity to the entire nation. r t- j The total of $425,168,897.04 collected from tobacco taxes in the fiscal year 1934 was $22,429,837.79 or 5 57 per cent, greater than the collections for the previous year, and represented 18.48 per cent, of the total inter- nal revenue collections for 1934. onn .^1?^^^ oSl ^^^^^^ ^°^ s°^^i) contributed $350,- 299 442, or 82.39 per cent, of the total tobacco tax col- lections; cigars (large and small), $11,806,314.39, or con.?^'' cent; tobacco, $55,298,629.34; snuff, $6,788,- bJO.47, or combined, 14.60 per cent.; while cigarette papers and miscellaneous items accounted for the re- mainder, $976,320.18, or .23 per cent The increases or decreases in collections as com- pared with the previous year were as follows: Increases: Large cigars, $328,300.35, or 2.90 per cent ; large cigarettes, $616,228.97; cigarettes, $21,243,- 031 87, or 6.47 per cent ; snuff, $383,191.44, or 5.98 per cent; miscellaneous items, $11,009.15, or 1.14 per cent Decreases: Small cigars, $712.34, or .41 per cent; manufactured tobacco, $151,711.65, or .27 per cent The leading States in the production of the various M%^ . tobacco products during the calendar year 1J33, together with the respective percentages of the total production for which they accounted, are shown .^^^"^dars: Venn^ylvsLmtL, 37.57 per cent; Florida, 10 83 per cent. ; New Jersey, 10.31 per cent. ; New York^ 6.20 per cent ; Ohio, 4.97 per cent ; South Carolina, 4.92 per cent; Kentucky, 4.91 per cent; Michigan, 4.56 per wnt* ' ^''^''''^' ^'^^ P^'* *'*''*• 'Aggregate, 87.76 per Small Cigars: Virginia, 81.96 per cent.; North Carolina, 9.96 per cent. ; Pennsylvania, 4.73 per cent ; New York, 2.31 per cent 'Aggregate, 98.96^r cent BAYUK BULLETIN VOLUME III. JANUARY 15, 1935 NUMBER 1 HULOFAX (The Reiailer'B Friend) SAYS All predictions in- dicate that 1935 is going to be a real year of business im- provement right on down the line ... it will be if we WILL it to be. — o — Of course, all of us reviewed 1934 before making our 1935 resolutions ... we scrutinized the wrong things we did, with a determination never to do again, and we analyzed our good performances with a never-say-die spirit to do better in the days to come. — o — One of the most pleasing things in I connection with the sale of cigars for Christmas was the vast anoount sold [in l/20th8. — o — What success attending your sales efforts on cigars for Christmas 1934? Better make a written memorandum so that they won't be forgotten next year. Lots of folks got cigars for Christ- mas . . . they appreciate the conveni- ence of having a box of cigars around the house . . why not get them in the habit of buying a box of 25 or 50? — o— October, November and December are not the only months to roll up in- creases . . . January, February and March are just as good . . . and, per- haps betttt! _ — o— Don't hold over any left over cigars for the "vacation period" . . . make a real effort to dispose of them now . . . «lried-out cigars don't help the cigar business or YOUR business either. Phil M. Phulofax, D. B. I., gives heartfelt thanks to all his readers who helped make Phil's Christmas and New Year's Day happier with the hundreds and honditda of greeting cards. OitUt^*^^ ■ATmaoAmnc, "Time to put away that umbrella!'' smiii//// HT AINT GONNA RAIN NO MORE'' PhU M. Phulofax Sets Up As a Weather Prophet Until very recently we have re- frained from making any glow- ing predictions about the future of the cigar business. Prophesy- ing is a hazardous occupation and we are by nature a timid soul. But when you plainly see the sun peeping out from behind the clouds, it doesn't take much nerve to bet on clear weather. A lot of things have happened lately that make P. M. Phulofax heave a deep sigh of relief and complain of feeling better. For instance. We mingled with the Christmas shopping crowds. They were bigger and better, jollier crowds than we have seen in a long time. And they were spending money! We read in the papers not long ago a piece by a gentleman who was a high-up in a former Ad- ministration. He's noted for smoking an underslung pipe and you'd recognize his name in a minute if we mentioned it. 'This gentleman said the Depression would be over in June. We don't know just what he meant by that. But it sounded pretty good, coming from a man who has no reason to beat the drum for tlie New Deal. Of course you've been follow- ing the figures on cigar pro- duction. They've been on the up-grade for months past. And the number of cigars Santa Claus gave at Christmas leaves us won- dering how he found room in his sack for any other gifts. Taking one thing with another, it's just about time all good cigar retailers put away their um- brellas, and used both hands to make hay with. We're ho Polly- ana. But when, things are better, we might as well admit it. We'll all go further and faster if we throw off the last vestiges of de- pression psychology. Come on, you dealers! A lot more men are going to smoke a lot more cigars this year. The business is there for the taking. And who's going to take it? Not the cut-price dealer, any more. The Code has made him a thing of the past. No sir! This time the prize goes to the dealer who is the best merchant — ^who keeps the best store and gives the best service. Is that dealer youf If not, for Pete's sake, why not? THE HARDER THEY ARE TO SELL-THE TIGHTER o THEY STICK Thomas L. Jonra (of the St. Louis Joneses, you know) gives the follow- ing bit of sound advice to his fellow salesmen : When you want to take time out from the regular route or routine, take half a day or a full day to work on accounts that you haven't been able to sell. Somebody's selling them, so they are not impossibilities. And the hard-to-sell customer almost invariably makes a most desirable customer after the ice is broken. If he was hard for you to get, he's going to be hard for your competitors to get away from yen* A CIGAR STORE MUSEUM Joe Wallace, Chicago Cigar Dealer, ExhibiU Interesting Lincoln Collection, If you are ever in Chicago, take time to run out to 3800 Diversey St. and see one of America's most imique cigar stores. It is run by Joe Wallace. As you step inside, you wonder for the moment whether you haven't wan- dered into a museum by mistake. From the walls look down literally hundreds of pictures of Abraham Lin- coln. If you happen to be a Lincoln enthusiast, Mr. Wallace can produce from shelves and cupboards Lincoln items in endless profusion — more photographs. Civil War discharge papers bearing Mr. Lincoln's signa- ture, Lincoln busts, Lincoln medals. Like all bom collectors, Mr. Wallace considers no distance too far to go for new items pertaining to his hobby. His vacation periods are likely to find him in Springfield, 111., Washington, Gettysburg — anywhere there is a like- lihood of his nmning down a bit ol Lincolniana. If you are a cigar dealer, perhaps youll want to take a leaf from Mr. Wallace's book. You may find it good business to make your shop not "just another cigar store," but an interest- ing place where people like to come and bring their friends. For example, what an interesting exhibit you could make of photographs of your own home town "in the good old days'| — picture of old landmarks that the tide of progn^ess has swept away, pioneer citizens, the local fire department when firemen wore walrus mustaches and drove big horses. Such picture shouldn't be too hard to find. If you are a war veteran, you might make yours an "American Legrion" store, with pictures from "over there." The U. S. Signal Corps supplies them at small expense and could probably furnish some of your own outfit. Pictures of movie and radio stars always attract attention, and goodness knows they're easy to get. What are press agents for, except to supply pic- tures of the great and near-great to newspapers and others who will give publicity to their clients? Yes, there are any number of ways a dealer can make his store stand out from the crowd. The Day of Miracles Is Past! The members of the Boston sales branch of a well known cigar manu- facturer have passed the foUowing resolution for the New Year: "There are no miracles that can lift the cigar industry into prosperity. Our own bidividual efforts must do that." That's a good thing for all of us to remember. And never were honest ef- forts so likely to be rewarded. 1935 is all set to be a great cigar year! BAYUK BRANDS BUILD BUSINESS Baynk 'Phillies* (BAYUK PHILADELPHIA PEBFBCn^ Havana Ribbon Mapacnba Charlea Thomson Prince Hamlet Cigarettes: North Carolina, 55.15 per cent; Vir- ginift, 28.58 per cent.; Kentucky, 8.16 per cent.; New Jersey, 4.26 per cent. ; California, 3.26 per cent. * Ag- gregate, 99.41 per cent. Large Cigarettes: New York, 41.83 per cent.; North Carolina, 37 per cent.; Pennsylvania, 20.41 per cent. • Aggregate, 99.24 per cent. Plug: North Carolina, 57.40 per cent.; Missouri, 32.89 per cent. * Aggregate, 90.29 per cent. Tivist: Missouri, 42.63 per cent.; Tennessee, 29.48 per cent. ; Kentucky, 25.43 per cent. 'Aggregate, 97.54 per cent. Fine Cut: Illinois, 47.68 per cent. ; Michigan, 22.94 per cent.; Virginia, 13.98 per cent.; Pennsylvania, 6.91 per cent.; Ohio, 6.43 per cent. * Aggregate, 47.94 per cent. SmoJcing and Snuff (combined, including Scrap Chewing) : North Carolina, 31.05 per cent.; Ohio, 17.25 per cent.; Kentucky, 11.56 per cent.; Illinois, 10.37 per cent.; Virginia, 7.14 per cent.; Tennessee, 6.17 per cent. ; Missouri, 4.38 per cent. ; West Virginia, 2.98 per cent.; New Jersey, 2.64 per cent.; IMichigan, 2.50 per cent.; Pennsylvania, 1.85 per cent. * Aggregate, 97.89 per cent. PRODUCTION CONTRACTS EXTENDED ECRETARY of Agriculture Henry A. Wallace has extended into 1935 the production adjust- ment contracts signed early in 1934 by pro- ducers of Georgia-Florida shade-grown to- All of the producers of this tobacco, a cigar wrapper typo, have signed adjustment contracts. Only one major* modification is made in the contract as ex- tended into 1935. Under this modification, farms with a base acreage allotment in excess of five acres \vill be allotted 80 per cent, of the base as compared with 66 2-3 per cent, in 1934. This modification is expected to result in production of a crop almost equal to the current level of consumiJtion. Stocks have been re- duced until they are only slightly above the normal level. Farms with a base acreage of five acres or less will receive an allotment in 1935 equal to the full base. All other provisions of the contract are the same in 1935 as they were in 1934. Two payments, each at the rate of $30 an acre for the tobacco acreage har- vested on the farm under contract in 1935, will be made to contract signers. bacco. BUDGET FOR PIPE CODE HE Code Authority for the Smoking Pipe Man- ufacturing Industry has made application to the National Industrial Recovery Board for approval of its budget for, and of the basis of contribution by members of the Industry, to, the expense of administering the Code for the period from May 1, 1934, to April 30, 1935. The total amount of said budget for the said period is $12,500. The basis of contribution is as follows : All members of the Industry shall be assessed ex- cept those specifically exempted by paragraph 3, Ad- ministrative Order X-36. The maximum assessment shall be thirty-five (35) cents for each one hundred dollar ($100) volume of member's gross sales for pre- vious year pavable quarterly in advance beginning May 1, 1934 '4 AN AUDIENCE FOR GRACIE RACIE ALLEN is breaking a precedent of long standing. Ever since she and George Burns came to the air three years ago, they have steadfastly refused to broadcast before an au- dience, while the trend for studio audiences has grown, leaving them the only major radio comics to perform in a studio closed to"^ spectators. Further than that, Gracie insisted on working behind a screen which sep- arated herself and George from the orchestra, during their first several months on the air. At last Gracie has capitulated to the studio au- dience trend. The first Burns and Allen program be- fore spectators will be broadcast from the Figueroa Plavhouse in Los Angeles over the WABC-Columbia network on Wednesday, January 16, from 9.30 to 10 P. M., E. S. T. Gracie's reason for the move is an attempt to solve a problem that has been worrying her for three years. ''Vou see," she explains, "no mat- ter how soon I got home after our program and turn on the radio, I'm always too late to hear me. I'm hav- ing an audience so that at least if I can't hear me I can see someone who does and vice versa. Don't you think so!" Because of the decision to perform before a visible audience, George and Gracie will have a surprise script instead of the intended motorcycle trip to Palm Springs, originally announced as Gracie's adventure tliat week. George and Gracie don't know just what they'll do; Bobby Dolan and his orchestra don't know, but* Gracie hopes that the audience does. CINCINNATI "BOX MAKER" DIES Frank A. Aman, president of the Aman & Sand- mann Box and Lumber Company, 24 W. McMicken Avenue, Cincinnati, Ohio, died sudtlonly December 26, 1934, while attendinu the Walnut Hills Business Men's Club in that city. Mr. Aman was apparently in good health up to the time of his death, and was enjoying a friendly game of cards with friends at his club when he suddenly suf- fered a heart attack, fell forward in his chair and passed away before a physician could be summoned. Mr. Aman had been engaged in the manufacture of cigar containers for a number of years and was well known throughout that industry. He w^as 66 years old. REYNOLDS TOBACCO EARNINGS INCREASE R. J. Revnolds Tobacco Co. reports for 1934 net income of $2i,536,894, after all charges, equal to $2.15 per share on combined 10,000,000 shares of combined common and Class B common stock outstanding, com- pared with $21,153,721, or $2.11 a share in 1933. Cash dividends of $3 per share were paid in 1934, as during each of the four preceding years. Discussing the subject of dividends, James A. Gray, president, says: "The directors have deemed it proper to continue dividends at this same rate in view of the amount in the undivided profits account when considered in rela- tion to the company's position in the matter of cash and Government security holdings.** The Tobacco WorU Status of Tobacco Industry Farmers and Retailers Profit Most from Conditions OBACCO manufacturers in 1934 more than ful- filled their tacit obligation to see that all divi- sions of the industry enjoyed some measure of prosperity. While the farmer and the retailer were benefiting either from the highest prices in many years or a degree of price stability almost unprece- dented in the industry, the principal producers were contending with higher costs, and showing only modest increases in profits, in the face of record cigarette con- sumption. When the prosperity of the cigarette makers— -who are the principal manufacturers of tobacco — was at the record high several years ago, farmers, because of over-production, were receiving the lowest prices for their leaf that have prevailed in many years. Retailers, at the same time, were facing price- cutting from chain stores which rendered cigarettes — the largest part of all tobacco sales — unprofitable. Last year the price of tobacco rose about 50 per cent., and farmers were able to pay otT debts. A proc- essing tax was applied on tobacco, to be paid to farmers to cut production, and this year, with a small crop, the average price on leaf tobacco is up nearly 100 per cent. Tobacco farmers, therefore, are finding the present situation entirely satisfactoiy, although some observers are warning that there must be a reaction in the price next year as a result of this year 's high price. Under an administration executive order, cigarette price minima were established in July which resulted in the standard brands of cigarettes selling at 13 cents a package, reports the Wall Street Journal. Here, too, the new price levels put the business on a profitable basis. Helping the tobacco farmer will cost the cigarette industry about $25,000,000 this year in the processing tax. While cigarette prices were raised 53 cents, net. this year, only part of this went to profit, and the cost of higher leaf tobacco, plus the processing tax on the same tobacco, which is selling far above a ** parity** price, is reducing the earnings of the cigarette makers. Where the cost of the processing tax, during the first year of its imposition, was generally figured at 11 to 12 cents per thousand cigarettes, with the increase in the burley tax October 1st to 6.1 cents a pound, the cost per thousand on all tobacco in the cigarette is increased to approximately fifteen cents. This will be effective for 1935, unless a change is made. The present price of $6.10 a thousand, on its face, does not compare badly with the $6.40 price prevailing when the cigarette makers earned far more than they will show for 1934, but the added costs this year will, in effect, bring the price for 1934 down to about $5.75 or $5.80 a thousand. This difference is accentuated even more if it is figured on the difference in net profit per thousand, rather than on list price before discount and including the Federal tax. To increase profits in 1935 the cigarette makers must either lower costs or raise prices or volume. With 1934 consumption far past all previous totals, there is no gauge for estimating next year's business. On the point of costs, makers are seeking a reduction in the processing tax. Since a higher price for cigarettes might militate against a cut in the processing tax, it would now appear unlikely that such action may be taken shortly. Cigar production in 1934 is registering the first real gain over the preceding twelve months in many years. Here, too, the industry feeling that leaf tobacco is high enough without a processing tax, is seeking its removal. Profits of the leading companies in the five- cent cigar field, the division showing the most rapid growth, are rising, but elsewhere the picture is spotty. Tune In on These Programs of Cigar and Cigarette Manufacturers •General Cigar Company White Owl Cigars J. Walter Thompson Co. •Liggett & Myers Tobacco Co. Chesterfield Cigarettes Newell-Emmett Co., Inc. •R. J. Reynolto Tobacco Co. Camel Cigarettes Wmiam Esty & Co. ** Adventures of Gracie*' — Burns k Allen and Bobby Dolan *s Or- chestra Andre Kostelanctz' Orchestra Wednesday, 9 :30 to 10 P. M. ** Camel Caravan'' — Casa Loma Or- chestra, Walter O'Keefe, Annette Hanshaw and Ted Husing Monday, Wednesday, Saturday, 9 to 9 :30 P. M. Tuesday, 10 :00 to 10 :30 P. M. Thursday, 9 :00 to 9 :30 P. M. Rebr., Thursday, 11 :30 t$ News From Congress _ 'AND FE D E R A L Departments ONTINUATION of all tobacco taxes at their present levels is i»laiiiied by the administration in order to secure the greatest possible revenue for the financino: of appropriations totaling $8,520,413,609, of which $4,582,011,475 will be for recov- ery and relief activities, required by the Government during the fiscal year beginning July 1st next, it is re- vealed bv the annual budget submitted to Congress January 7th bv President Roosevelt. The total of expenditures will be some $60,000,000 below the anticipated requirements for the present fiscal vear, while expected increases in tax and customs revenues will bring receipts up by $280,000,000, so that the anticipated deficit of $4,528,508,970 will be some $340,000,000 under that expected this year. Continuation of all taxes which are to expire or be reduced during the coming year, as well as of the three- cent postage rate, is planned by the administration, it was revealed. However, unless Congress makes heavy appropriations not contemplated by the administration, no further taxes may be necessary. ** While I do not consider it advisable at this time to propose any new or additional taxes for the fiscal year 1936," the President said in his message, *'I do recommend that the Congress take steps by suitable legislation to extend the miscellaneous internal revenue taxes which under existing law will expire next Jane or July, and also to maintain the current rates of these taxes which will be reduced next June. I consider that such taxes are necessary to the financing of the budget for 1936." Cj3 Ct3 Ct3 XEMPTIONS from the minimum wage provi- sions of the various codes will be granted only where it is definitely shown that as a result of the wage requirements the continued operation of an industrial establishment is threatened, under the policy adopted by the National Industrial Appeals Board. A large number of applications for exemptions, rejected by the Industrial Recovery Administration, have been carried to the Board of Appeals. In many of these cases, it has been contended that the business is operating at a loss and lower wages are sought as a means of ''getting out of the red." The Board, however, has held that the mere fact that a company is losing money is no argument for not living up to code wage requirements, particularly where it can be show^n that competitive establishments are maintaining code wages without impairing their sol- vency. From our M^ashington Bureau 62Z Alki Building IRST STEPS toward an investigation of al- leged monopolistic practices under recovery codes have been taken by Senator King of Utah with the introduction in Congress of a resolu- tion calling for a full study of the effects of the Indus- trial Recovery Act. The purposes of the inquiry would be to determine whether the Recovery Act has encouraged or promoted monopolistic practices, whether codes have tended to nullify the anti-trust laws, whether legislation is needed to restore those laws to their former importance, and whether the anti-trust laws are adequate for the con- trol of monopolistic practices. Administration officials are studying the effect of the opinion rendered January 7th by the United States Supreme Court, denying the President's authority to prohibit the transportation of petroleum produced in excess of allocations, the most serious blow the recov- ery program has yet experienced. The court's decision will have no effect upon the codes themselves and is significant chiefly in its impli- cations that the nation's highest tribunal will examine the various points of the Recovery Act microscopically as they are presented to it. The next recovery case to come before the court is expected to be one involving the lumber code and will give that body its first oppor- tunity to pass on code questions. Other important developments in the recovery sit- uation were the initiation by the National Industrial Recovery Board on January 9th of public hearings to determine whether major code provisions should be retained, amended or nullified, and the presentation be- fore a St. Louis grand jury by the Department of Jus- tice of charges that the leading motion picture distrib- utors have violated the anti-trust laws by indulging in practices theoretically outlawed by the industry's code. Cj3 Cj3 tj3 ^wfilEAL recovery will take place in the United ■ Bfl States during 1935, it is predicted by Secre- ^m tary of Commerce Daniel C. Roper. "^ ' Reviewing the increasingly optimistic re- ports reaching his department during the past few months, the Secretary finds the business outlook for the coming year ** indeed very satisfactory". The enheartening viewpoint adopted by the head of the Government's commercial agency is seen by po- litical observers as highly significant, since Adminis- tration spokesmen heretofore have avoided outright economic predictions in the face of forecasts that failed to prove true in previous years, Tk0 Toboeeo World The Secretary based his belief that better times are approaching, not only on the reports of highly satis- factory business during the holiday period— the best since 1929 — but on the views of business executives comprising the department's advisory and planning council and on personal observations made during re- cent trips through the East and South. ''Every place I go," he said, **the approach of persons indicates a more optimistic outlook than has been evident for some time" Cj3 Cj3 Ct3 LL corporations engaged in interstate com- merce would be placed under the same Fed- eral control as banks and railroads under the terms of a bill introduced in the Senate Jan- uary 10th by Senator Borah of Idaho for the avowed purpose of "stripping all corporations engaged in in- terstate commerce of monopolistic powers and prac- tices". The bill would require all such corporations to obtain a license from the Federal Government, with- out which they would not be permitted to engage in interstate commerce. The measure is to be followed by a bill permitting corporations to obtain a Federal char- ter if they prefer that to acting or operating under a license. ICnforcement of the act would be vested in the Federal Trade Commission. No license would be is- sued to any corporation found to be an unlawful trust, combination or monopoly. The commission could sus- pend or revoke the license of a corporation found by it to be operating in violation of the anti-trust or other laws, and revocation would automatically follow a de- cision by a court holding a corporation guilty of monop- olistic practices or violation of the trust laws. **The aim and purpose of the proposed act," Sen- ator Borah explained, **is to bring commercial cor- porations engaged in interstate commerce under prac- tically the same supervision and control as now ob- tains with reference to common carriers." CP Ct3 CJ3 HE Code Authority for the smoking pipe manu- facturing industry has made application to the National Industrial Recovery Board for ap- proval of its budget for code administration, and the proposed basis of contribution to the same by members of the industry. The total amount of the budget for the period from May 1, 1934, to April 30, 1935, is $12,5(X). The basis of contribution is a max- imum assessment of thirty-five cents for each $100 volume of the member's gross sales for the previous year, payable quarterly in advance beginning May 1, 1934. Those exempt from payment are included under paragraph 3 of administrative order X-36 which ab- solves from payment those whose principal business is not included in the manufacture of pipes. Notice has been given today that any criticisms of, objections to or suggestions concerning this budget and the proposed basis of contribution must be sub- mitted to Deputy Administrator W. L. Schurz, 402- 1518 K Street N. W., Washington, D. C, prior to Jan- uary 28, 1935. Jmumy ts. 1935 Just Enough Menthol to Cool and' I Soothe Without Destroying L Thft Nntural Tobocco Flavor TOBACCO TRADE OBOANIZATIONS TOBACCO MERCHANTS ASSOCIATION -^^QW^ OF UNITED STATES *^Sif^^ JESSE A. BLOCH. Wheeling. W. Va V,:" •S!"-j'°! 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-Preiident GEORGE H. HUMMELL. New York. N. Y Vice-President H. H. SHELTON. Washington, D, C Vice-President WILLIAM T. REED, Richmond. Va Vice-Pre.ident HARVEY L. HIRST, Philadelphia, Pa Vice-President ASA LEMLEI?^. New York. N. Y ;• — ••••■ : •^"»"I«'" CHARLES DUSHKIND, New York, N. Y Counael and Managtnc Director Headquartcrs, 341 Madison Ave., New York City RETAIL TOBACCO DEALERS OF AMERICA, INC. WILLIAM A. HOLLINGSWORTH, 233 Broadway New York, N. Y President CLIFFORD N. DAWSON, Buffalo, N. Y Executive Vice-President JAMES C. THOMPSON. Chicago, III Treasurer ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, Kew York City .............President MILTON RANCK, Uncaster, Pa A"^'"* X!"*S"'!l*°* U EMIL KLEIN. New York City Second Vice-President LEE SAMUELS, New York City SecreUry -Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN. 180 Grumman Ave., Newark, N. J Preaident ALBERT FREEMAN. New York. K. Y '^"*^ X"=«S'"?1"* IRVEN M. MOSS, Trenton. N. J Second Vice- President A. STERNBERG, Newark, N. J Secretary RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA MORRIS LEVITONE v:";;;-.;-;-. •;•.••• u ?'«'*?«"* SAMUEL MAGID, 2001 N. Mervine St., Philadelphia, Pa Swa-etarjr THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS, INC. E. ASBURY DAVIS. Baltimore, Md President JOSEPH KOLODNY, 200 Fifth Ave., New York, N. Y .Secretary GEO. B. SCRAMBUNG, Cleveland, Ohio Treaamwr UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION JOHN F. BROWN • • V^tXAtiA HERMAN H. YAFFE, JOl Fox Building, Phiiadelphta, P». SrarMary r\ BsMbUthed 1886 "BEST OF THE BEST 99 "-'■'—■' '"' A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Kep West. Florida OUE BIGB-GRADE NON-EVAPORATING CIGAR FLAVORS ^ ^ .u k . Make tobacco meltow and smooth in charactatt and Impart a most palatable flavor rUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands ftVTUN. AEOMATIZEB. BOX FLAVOES. fASTE SWEETENERS FRIES A BRO., 92 Reade Street. New York yy^VfflUMmm;j!LUJ^tLa^^ Classified Column The rate foi thii column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c.) payable strictly in advance. rfi^fiytitc^nt(tti\,t/mf^tm FEB 7 1935 SENSE The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the neyv 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. / J-- ^ Phila., Pa. Hanover, Pa. Cincinnati, Ohio AUTOKRAFT BOX CORPORATION cIiTago^ili. Lima Ohio Detroit, Mich. A NatioixWide Service Wheeling. W. Va. 'ii'iiiiHiiiiiiiiiiiiiiiiiini mmnnn PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. ^ After all ^ nothing satisfies liKe^ " a jood 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 K*m«mb«r ♦hat Ref«»dl#« o» ^rkt THI iiST CIGARS AWE PACSn* i> WOODEN BOXES THE TOBACCO WORLD Vol 55 FEBRUARY 1. 1935 No. 3 ROM the annual report of the Commissioner of Internal Revenue for the fiscal year ended June 30, 1934, just published, we learn that the collections from tobacco taxes amounted to *425 168 897.04, an increase of $22,429,837.79, or 5.o7 nefcent, over the collections for the previous year. C tobacco taxes represent 18.48 per cent, of the in- ternal revenue collections for 1934, as compared wita 24 86 per cent, for the preceding year. The tax on cigars amounted to $11,633,296.26, an increase of $328,300.35, or 2.9 per cent., over 1^33 All of the increase was in Class A ^J^^ U%^.^/ fj'^ the former gaining to the exten of %^28.87 (10.44 ner cent ) and the latter to the tune of $2,4o2.89 (i.l»5 ner cent The losses in the other classes brought the Sel increase down to less than half that of Class A cigars alone. The biggest decrease was m Class C cigars. Cj) CJ3 CJ3 HE tax on small cigarettes amounted to $349,- 661945.45, which represents an increase ot $21,243,531.87, or 6.47 per cent., over the pre- vious year (and also represents 82.24 per cent, of the total tobacco taxes collected during the year. Thf collection of tax on large cigarettes increased ^m 6 228 97 and in the case of snufl the increase '^!S(o Amu. The amount of tax CO lecte^ on manufactured tobacco decreased $l«^Mll.6o, and that applicable to small cigars decreased $712.^4. The total tax collected on cigarette PaPf^ ^^ tubes amounted to $973,054 18, an increase of $14,908.84 over the previous year.. The P^^^ction of cigareUe papers of domestic origin amounted to 9,729,959 pack- ages, a decrease of 89,930 packages from the previous vear • and 59,141,230 packages of cigarette papers were frnpoVfed, wMch Vas an increase of 1 246,447 packages. The production of cigarette tubes of domestic manu- facture amounted to 21,214,900 tiibes a d<^f ^^se f r^ the previous year of 4,681.300 tubes; and 56 )48,W0 cigarette tubes were imported, a decrease of 115,654,- m tubes. The tax is not applicable to packages of cigarette papers containing not more than twenty-five papers each During the year there were removed from ?he place of manufacture 1,930,133,447 packages containing not more than twenty-five papers, and o.i9,- 625,666 such packages were imported.. The increase over the prior year of packages of cigarette papeis containing not more than twenty-five papers each, so removed, amounted to 471,637,018 packages, and the increase in such packages of papers imported amounted to 82,551,183 packages. There were removed during the year jrom the place of manufacture 23,251,430 cigarette tubes which were exempt from tax by reason of their use by cigar- ette manufacturers. During the year 729 permits for the removal, tax free, of tobacco products for the use of the United States were issued. These permits covered 10,480,000 cigarettes and 197,497 pounds of manufactured tobacco, as compared with 532 permits ^sued flurmg the pre^ vious year covering 9,944,000 cigarettes and 240,7o8 pounds of manufactured tobacco. Claims for the redemption of stamps spoiled or rendered useless were allowed in the amount ot $bUl,- 440.51. The redemption of stamps for which the owner alleged he had no use amounted to $44,221.21. Stamps in the amount of $257,316.42 affixed to products with- drawn from market were presented for redemption or destroyed in accordance with the law and regulations. C!3 CJ3 Cj3 HE withdrawals of tobacco products for con- sumption beyond the jurisdiction of the inter- nal revenue laws of the United States amounted to fifty-six pounds of tobacco and mmif and 135,645,380 small cigarettes delivered direct to vessels, and 10,870 pounds f tobacco and snuff and 113,450,560 small cigarettes delivered to bonded to- bacco sea stores warehouses. Twenty-five manufac- turers effqcted these withdrawals. The delivery of obacco products from bonded sea stores warehouses to vessels amounted to 22,039 pounds of tobacco and snuff, and 356,641,360 small cigarettes, ^^f^^^^^^^^ ^^^ warehouses being in operation at the close of the year. CS3 Cj3 Ct3 XTENSION of the minimum mark-ups oa Cigarettes was ordered by the National Indus- trial Recovery Board January 24th but at the same time the trade was warned that tem- iiorarv emergency*' cannot be used as a permanent meanTofSIng the problem of unfair price competi- C and d^e^^rulive pHce-cutting. A PerHian-t pl^^^ for meeting the situation was ordered prepared by the Kl Tobiceo Trade Code Authority, and the board aUo cUed upon the wholesale tobacco J^f « ^^^^^^^^^ to it all evidence available regarding the effect of the mark up order upon subjobbers of cigarettes. The "rder extending th^ emergency -^5^1?^^^^- the NBA division of research and planning to study and report on -the situation in the trade (retail) as ?t relates to destructive V^f-^^^^J^^.^^lf,^^^ upon small enterprises'' and the "situation m the K (wholesale) as it relates to price-cutting and the effect thereo? upon small enterprises and the status of subjobbers operating under the terms of said order. - u u -♦ o Hankins President and Treasurer; The TOBACCO WORLD (established 1881) is P-^^fi^J^li:S:?Tu^^^^^ --*^- ^iS^S mattt Gerald B. Hankins, Secretary. Office, 236. Chestnut Street Phtl^elph^ Pa.^i^^^^^^ ^ ^,^^ g^^,,,^ as second-class mad matter, able only to those engaged in the tobacco mdustry, ^f^J^'.^ Act of M^ch 3, 1879. December 22, 190f , at the Post Office, Philadelphia, Pa., under the Act oi Marc Price Control Essential to Retailers By WILLIAM A. HOLLINGSWORTH Y APPEARANCE here is in behalf of many thousands of retail tobacco merchants : Small retail dealers in tobacco products representmg every important trading area in this country. Various estimates have listed the retail tobacco out- lets in this country between six hundred and eight hundred thousands and various tabulations have esti- mated three-quarters of them do a dollar volmne of less than ten thousand dollars a year. ^ ^ ^^ ,, The 1930 Census of Distribution sets forth the following table as a guide to the distribution of tobacco products : Cigar stores ^3% Drug stores f^^ Food stores 1* A' All other stores ^^/° 100% The selling of tobacco products is perhaps under- taken bv more tvpes of retail outlets than any other commodity circulated in commerce and the major part of this distribution is given to very small merchants. During the past year many eminent critics of the NBA. grounded their attacks upon the premise that it was detrimental to the "little fellow.^ I"«*f"P^^ were cited to show how the -little fellow' was being strangled by the dictum contained in the National in- dii^rial R^overy Act and its Codes. Broad state- ments of protest were voiced which claimed to embrace opposition from all the "little fellows." These state- ments I now and here challenge, as every personal sounding has brought forth a contradiction of these statements. The product of my investigation, being exactly the opposite to that upon which the critics of Is. K. A. founded their conclusions, leads me to believe their deductions were either predicated upon a careless en- largement of a specific survey or that more than a sensitive ear exaggerated the squawk of a few loss- leader pirates, or that their pet theories like Caesar s wife, could never err. On these theories I do not wish to turn controversial, but I do deny their proponents had or have any right to speak for the hundreds of thousands of little retail tobacco merchants stretched throughout the country. As insurance against a possible question of my right to represent these little merchants— I offer you mv authority in the form of thousands upon thousands of signatures and written endorsements representing over 100,000 outlets. This authority is representative in every section of the United States (forty-five states) and was sent me voluntarily. The addresses listed with their names are none more than a month old, thus can be checked against fairly accurately. At this point, it might be well to tell you that at he public hearing on the Retail Tobacco Code, Retail Tobacco Dealers of America, which acted as the proponent of the Code, registered more than two hundred and forty thousand proxies to support its representation. Floor Under Pric«i It has been said that a floor under prices is im- practical and unenforceable. Whatever has happened in other industries to induce such a ^tatement^^^i^j'^" no way be tied to the retail tobacco industry. The Code Authority for the Retail Tobacco Industry has secured definite and almost complete compliance with the merchandising plans embodied m the Code Ut course, there have been a few violations ; peculiarly, the major violators have all been aliens to the tobacco industry. Either loss leader practitioners in the drug, clothing or liquor business, who used tobacco products ^' ^ Almost accurate picture as to how the retail price floor affected the tobacco industry is contained ma table reporting the production figures for the past eleven months: ^^^ ^^ ^^^^ ^^^^^^^^ ^^^^^^^^ Cal.Yr. 1934 Quantity Per Cent. 4 522 649.306+ 227,811,058+ 5.30% C'gars 214 837 653+ 1 5 376,20?+ 7.71% Set^if" •::::::::::::ii6.^7:6?9:7S+ i2.439;i64,5io+ 11.96% ^^^ At \ 34 488 251+ 555,740+ 1.64% I'^bLrMfgdicLbsy::: 287;o7o;507i 1.460,297+ 0.51% This table shows the whole tobacco industry has moved substantially ahead with one exception-snaok- hig tobacco-this one division of the industry which has not enjoyed the protective provisions of a price floor has remained almost stationary. , When a ** price floor" was gained for cigarettes and cigars smoking tobacco became the cut-raters football and the loss leader practitioners' bait Prices in this field are probably the lowest ^^^^^^ed in hi^ torv and are still going down-today, P^f ^^^^yj,^9 package of popular branded smoking tobacco sold is sold at a loss by the independent tobacco retai er, and vet one finds the pound consumption Plastically stag- nant and the dollar and cents value away below normah Contrast this with the unprecedented increases in the consumption of cigarett^es where a "P"ce floor has been in operation for about six months. The in- crease of cigarette consumption m the month ot November, 1934, was 42 per cent, over the same month in 1933. Prices Not Raised The Research and Planning Division of N. R. A. has recently completed a spotted sur%^ey ot retail cigarette distribution. I believe this survey showed tie stabilizing of cigarette prices did not raise a^^^rage prevailing price to the consumer. This was due to the fact that most retailers' price gravitated to the estab- lished minimum or ''floor price.'' How much standard pnces have contributed to in- creasing cigarette sales is hard to estimate, but this much Ic do know: the consumer often hesitated to replenish his supply if he happened to run short while in a hotel-restaurant--railroad station or any place where the product was not sold at cut-rate prices. Re- moving every excuse for this one consumer tendency by standardizing prices has alone contributed gen- erously to the increased consumption of cigarettes. Curar production is showing the first substantial increase in years. November, the ftijft^ull month so^ eration under the Cigar Merchandising P «"; «h<;^* an increase in production of 11% per ^r^J^'f the same month in 1933. Ever>' indication points to the largest December production m years. (Continued on Page 8) Tk* Tohaef WorU Cigars and Cigarettes Up, in December HE following comparative data of tax-paid products, indicated by the monthly sales of Itamps, are issued by the Bureau. (Figures tor December, 1934, are subject to revision until published in the annual report) : December Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. 1934 261,698,390 5,543,950 46,742,866 3,096,660 481,576 1933 220,941,685 4,222,u20 46,819,06-2 4,163,726 543,747 Total 317,563,442 276,690,240 Cigars (small) No. 8,772,5j^ 12,261,507 Tax-paid products from Puerto Rico (not included in above slatemeiit) were as follows: December Products 1934 1933 ''''aai^r^^ ...No. 3,503,225 3,877,400 Class B """.No. 7 150 106,500 Class C ": ....No. 71,200 81,280 CkssD :; No. l^m Total 3,582,575 4,065,180 Cigars (small) . . Cigarettes (large) Cigarettes (s»itill) .No. .No. .No. 100,000 300,666 30,000 140,0^J0 Tax-paid products from the Philippines (not in- cluded in above statement) were as follows: December Proauct8 193* 1933 ""''oaliT^^ ..No. 24,206,220 15,891,485 Class C No. 1,140 9.^" Class D No. ^"" • « « • * Total • • • • • 24,260,820 15,914,036 Cigars (small) No. Cigarettes (large) No. Cigarettes (small) No. 9,000 133,160 • ••••• 200 114,260 DECEMBER W1THDEAWAL8 1920 TO 1932 Comparative Statement of Collections for December Source of Kevenue 1934 1933 (.:„„„ $868,364.45 $781,112.44 C larettoV :'.■.■. 27,632,009.86 23,40l,9u2.67 slfX .... 481,665.48 430,855.44 ''S^.g':'^"""^.'"' 3.606.035.42 3,472,660.04 ''tC . ^". ^. '.". ."^ 76,337.68 84,440.79 Miscellaneous, relating to tobacco ^^•'^' _ Collections From Agricultural Adjustment Taxes and Tobacco Sale Tax Total from Month of July 1, 1934 Dec, 1934 (fiscal year 1935) Tobacco (tax effective October 1, 1933) Processing tax .... $4,073,01,,.88 $16,039,622.10 Import compensat- 128,433.49 Total $4,112,243.49 $16,202,996.04 Tobacco sale tax ". '. $606,399.52 $1,065,013.05 1920. 1921. 1922. 1923. 1924. ■ ■ * ■ • • • • * • 506,126,135 463,663,809 ...561,041,853 ...491,358,758 .511,276,573 1925 473,336,217 Fehmory i. X93S 1926.. 1927 . . 1928 . . 1929.. 1930.. 1931 . . 1932.. 464,575,489 . 393,006,532 .411,910,434 .410,862,907 .349,635,250 .304,531,411 .254,135,965 Commodity CUT DOWN INSECT LOSSES lEW fumigants and a recently devised light trap have made it possible to cut m half the losses caused by cured-tobacco insects. Damage to stored tobacco was estimated at several million dollars in 1930, according to Lee A. Strong, Chiet of the Bureau of Entomology and Plant Quarantine, US D^Laitment of Agriculture. For many years, Mr. K^avs, the ciiarette beetle and the tobacco moth, general feeders on dried vegetable niatenal through- out the world, were accepted as a necessary evil m to- bacco wlrehouses. The mounting destruction by these insects however, coupled with rising tobacco prices, TeT obaL men'to se^ek aid from the ^ep^rtm^^^^ Agriculture in devising measures tor controlling the tobacco pests. . , . Department entomologists and chemists, xx-orking in CO operation with the industry through the last five i^.ars have developed effective methods tor the atmos- pheric fumigation of closed tobacco warehouses and For the vacuum fumigation of impo'-t^d .tobacco The entomoloKists also have devised a suction light trap Ks proved to be a good cigarette beeUe and moth ..otnhpr in oDcn-tvpe warehouses. Kesearcn now m "prog r'e'ss Mr^Stro'n'g adds, is expected to show the way to further savings and to reduce the cost ot applying control measures already adopted. The greatest losses from 1930 to 1934, Mr. Strong savs probably occurred in cigarette tobaccos. Sam- n^es of heavilv infested cigarette-type tobaccos cpl- fected and examined by entomologists showed tha in- sect feeding might destroy as much as 20 per cent, ot each pound infested. lilA. BAYTJK BRIBF8 HF SHULICK-TAYLOB people are doing a gldTob on Bayuk Phillies, Pla««g ^hem on fX and display effectively in the- Wh^elm^ territo JiSr il ^eping^P ^£^S:^^, Los Angeles marke, w.th the »'d of "aas ^^ ?r^ff1!id^tl'ct"nuetheirZe progress and were S ytsS-rC E. Miller, Bayuk s^-an. open^ ing new' a<--J« ^f actS^tSfe ten^^^^^^^^ ^-m K- Jrs'oHhrgroup P-laimed their^np a .ostu. teresting and education »"« ; ". " V JgJ^°e"o\ qWo and appointed territor^l manager for the Sta^e ot^U ^^^^ ^^ is on a t"Pt^''°»„^^ht^L\'"Ip'^inted territorial m S^.^^'^f^^hlten^^^^^^^^ S'r CT"«burgh, Pa-^re recent visitors. a. H. p. CHAHOES lALE DeBOLT, who for eleven ye*" headquar. J tered in Richmond, takmg care of G. H. P. bnsi I ness for part of the Southern territory, lu« ■* Wn transferred to Boston as branch manager DeeniraiiBi o„eet who conducted the succeeding the late Fred ^^^{^_^n"]^ed&n, for the to Richmond, to succeed Mr. DeBolt ... ^^ .^"^j°^ l^^A fnr « two-dav conference. On the tirst aay luey road for a ^y^pj^ j; .. ^j.^^ the manufacturing were addressed by execuuves a»"*" »^ ^,.-p Wpn rari^Vrw^al^aln^thTsTe"^^^^^^^ Elf wi^n-di^uP ^?h\«uet-" .^^^arl^r non and^eorg! SignaigC of the Brannon-Si^na.go PiMr Co Dallas, Texas, spent several days m the No?th and called at G. H. P. headquarters. Frank P. Wm was m^e than glad to welcome them and to tha^ ♦h»in in nerson for the outstandmg gob they did on El &ctoTnd La Azora throughout the SUU of Texas in 1934. Trade Notes The Medalist Juniors, which were recently reduced in price! are enjoying an increased demand. H.rrv Tint oronrictor of the high grade stand at T f tl»t»ervri:ifT:t ^^Td^ ttetSactS o&e cigars for his stand. Barton Lemlein, of M. Sachs & Co., stopped over interest of his brands. Otto Schneider, of Corrall Wodiska y Ca., and N. V ViPhols of the Belinda factory (Havana), paid job- bers and retailers a visit here this week and reported a good demand for their brands. Other visitors last wXinclude Sain Adler, of the whom repirt splendid business on their br»iid.. Marcello, one of Yahn & McDonnell's "New Deal" branSu enjoying a nice !---« in^d.stn^^^^^^^^^^^ sale. This popular brand (an old-timer in me irouT; now retails at five cents. Yahn & McDonnell, Optimo distributors for this territoT report a new brand being marketed by A. SanfaeS & Co.' under the trade name of Flora Mia, to retail at two for fifteen cents. John L McGuertv, United States representative for the Romeo y Juliefa factory, of Cuba, was m town ast week visiting John Wagner & Sons, local distribu- tors of the brand^ Mr. McGuerty was en route to Flor- d^ via motor accompanied bv Hoke Diaz, of the Pre- f«rld Havana Company, jfr. McQuery plans to fly from Florida to Havana, where he wUl vis.t his factory headquarters. TO RELIEVE FATi GU E . . •.«j»^ •?^. m. • Ai^ J«ck She*, champion speed skMer, who says: *s.^»k£ag cXfbr an ahund«it supply of energy. I f^rl«r^" used up after the last hard sprint to the rJL STc^els mtor; my pep.' And d«y never dj^b l^nZ^. For sheer pleasure, there's n«^^°J^ a Camel' »- s*^ COLLBOBOI«L.tmBla BMtay: **CaiMk ta«« ao mOd— and they fivayo* • •Hft' when jwu naed ■ DRAFTSMAN. Frankte Domtolck: ••Camalabrtag bade Ac mental akftpcia rttft • draftwnao nee^" q:i any L^H'.V o V; ANY ''^C You'll like the Cimcl Caravwi Marring W»itcf O'Kecfc.Knftcttc H awha'^ ,Gfcii Gtay-i Casa Lorn* Orct«5tr» ""^"^^ tft -coast WABC- Columbia Nctwofk. Tuawav I tmitsaA* " «^f>.M.MlT. ?«0 P M. P.S.T. CAMEL S COSTLIER TOBACCOS R.J. IUyi»MiiT«*«^ ro«»p»ny Wlnitt«n-S«lMn. N.C February s, ipSS PBICE CONTROL ESSENTIAL {Continued from Page 4) At the outset retail tobacco dealers i"«oyPora|f<|: in their Code a minimum ^vage scale 10 per cent higher t a those established in the other three retail Codes and we believe the hours of the employment schedule materhillj increased the number of persons employed. Credit Standing Regained Returning confidence of manufacturers and whole- salers in retail credit risks has been P.^no""^^^^"'"^^ tlie retail pvice floors have been operating !"« Recent discussion with a district sales manager of the Genera Cifi-nr Comnanv, a concern which undertakes its own d istr buUon 'n everal trading areas and has several no sands of retail accounts, it was l^™"f ««* '«" tnilers were rai)idlv regaining their credit standing. TWs conceru-s k.tcments show their collections today turn over the entire outstanding accounts in tort> -tive davs. ^^^^ere a year ago it took about six >--tive and seventv davs {o secure the turnover. A so, it was stated their losses because of entire default were but n ■ruction of what tlie amount totaled a year ago A arge iobbin. house-The Metropolitan Tobacco Comnanv of New York and New Jersey-wiich serv;es ovrr^eventv-four thousand retail accounts is oday in- V ting retail credit accounts, reversing their credit noUcy of a vear ago. A question about this change of Dolicv directed to the management brought forth. ?L^fr,lnwine rcDlv '-The operation of the tobacco coles as^efusThai honest tobacco retailers will now r'twoto compete fairly for the 'usmess whereas V en •• e "oss leader practice was in opera ion. they • ^n tel t'^eir capital in a dcperate effort to hold ,.n tomer ' who mi-rht buy other merchandise AV e now k "ow wi'h a slnbilV-ed industry as it exists under the ro°cV. they will be able to meet their reasonable obliga- tions." When the tobacco codes were negotiated, certain prophecies were made by the industry as to the possible Favorable effects of the price rey'«'°"« ^^i^^-^^'f '" ^^,^ code Today we are in a position to lay the actual resuts alongside those prophecies for comparison; when we do fhis, we find that in almost every instance Uie actual results compare more than favorably with those predictions. Of Benefit to All Nothing in the record of tobacco merchandising indicates the "price floor" to be either impractical or uSrceaWe; rather the "price floor" has proved a benefit to all concerned with the industry. The little tobacco dealer knows he has benefited because of the enforcement of the cigar merchandising D?an and the cigarette order, and he wants them con- Ced His desires and his needs are in no sense tieoretical-thev are real. He cares very little about academTc problems or theories; in fact, he regards them as nothing more than bumptious phrases or intricate devices invented to befog his arguments for the con- tinuance of his existent possessions. True, !'« under- stands that he must necessarily be considered but a par of any general scheme to clear away the depres- s"on but his realistic viewpoint will not permit him to see either his begrudged or stinted buying power mak- ing anv contribution to recovery. , , , ♦,,„, ^ The little tobacco dealers of this country feel that price protection afforded them by their code is both virtuous and equitable and their only fear is that selfish interests and big business may conspire to de- nrive them of what they have rightfully gained. ^ Todav throughout this whole country they are pravin- the outcome of this convention wi 1 recom- mend that the merchandising provisions in their code "o on undisturbed and that the federal courts will sus- f^in all actions of their Code Authority to maintain compliance with these provisions. Cigarette Mark-up Extended ^E Natirnal Industrial Recovery Board on ^ I 1 y 24tli extended the orders establishing niniii mark-ups on sales of cigarettes un- t^er the codes for the wholesale and retail to- aceo traVes until March 30th. At the same time, the -oa^d pointed out that -declarations of temporary ei^ercrencies- are not a remedy -properly consonarU ' -^ tl e - rtmuin- protection which should beafforded r .,r e teiprires under the Act and the code provi- i ;: a-anU the effects of unfair pr'ce competition I ,e^, relive price cutting. '\ It called upon he ;'al t bacco trade code authority to submit a plan 11 the f rm of a code amendment or otherwise de- ne.: t provide such protection. It called uponjhe hlesale tobacco trade to present to the Board all erce easonablv available concerning the eiTect ol ad order upon sub-jobbers of cigarettes." The orders extending the emergency mark-ups re- mire the Division of Research and Planning to study and report on the -situation in the trade (retail) as it relates to destructive price cutting and it^s effect upon small enterprises" and the -situation m the trade (wholesale) as it relates to price cutting, the effect the.eof upon small enterprises and the status of sub- jobbers operating under the terms of said order. The mark-ups are minimum percentages whicH must be added to the manufacturer's price m all sales of cigarettes. They vary in amount according to the Trad! and price class of cigarette involved, but are calculated to maintain the normal retail P;;f ^ «J^^^f/; ettes at ten cents a pack and two packs for a quarer for the two most popular price classes. They were made effec h4 to stop the use of cigarettes a. oss leaders arprices below- cost, largely by retail outlets not pri- marily engaged in the tobacco trade. . , . . On July 12, 1934, the National Recovery Adminis- tration recognized an emergency due to destructive price cutting in cigarette distribution, and established minfmum mark-upl These orders have been extended from time to time, the latest extension being unta January 26th. In the order extending the emergency niark-ups in the retail tobacco trade the Board cited its findings, -1 That the essential elements of the condition causing the emergency in said grade, as so found in said order, are still existent therein and, m the ab- sence of adequate protection, will be di8criminatc.i> against and destructive to small enterprises m said tfade, particularly by reason of the unfair competi- tion and destructive price-cutting practices engaged in by certain competitors of such enterprises, which con- ditions are necessarily reflected adversely m the wage, hour and other labor conditions m the trade and m the Th* TobMCO World Ftbruary i, 1935 ability of such small enterprises to comply with code requirements; ^^ ^^.^ x4G6-4 as amended and extended, said conditions have been em- ™ly alleviated, but that it does not apjDear hat the Lnditions and circumstance, .gi^'^f -'«« t°^^^^^° emer^encv have been permanently cured oi removca, ^""""^f^^X conditions generally prevailing in the trade are uch that declarations of t*>.'nP°^»>->^fX le'icies under the present code provision do no ^ con- SctiitP n remedy proper v consonant with tlie conuuu ini protect i^in which should be afforded sniall enter- nries undei said Act and said Code against he effects ^f unl"a"r prfce competition and destructive price '""'"4' That the present degree of stability accoxn- tional recurrence of such conditions. The findings cited in the wholesale trade code or- "1 That the essential elements of the condition causing the emergency in said trade, as found m said Order, are still existent therem; "2 That as a result of said Order X462-&, as amended and extended, said conditions have been tem- ZaHlv alleviated, but that it does not appear that he conditions and circumstances giving rise to said emergeney l"ave been permanently cured or removed; "^ That there is evidence before the Board tend- in>i . ■, ■ „ gjggr business. Un- mers to assist and to aid in aoin^ yKu ^^ less he is so much smarter than I am, 1 ve goi "'^'l' .Ah'luThe has certain advantages that you can't overcome,' whispered that Itcantbedone b ain^ X!n id T thouo-ht had been kdled by that *''"! ^ 01 Confidence Ihat I took when I had that attack of Alibi- ^''''"Lot of 'thats' in that mouthful but they'd have to be a^ot of bats in my be'fry if I wouldn t tear those advantages to pieces before I'd give m to them. "So me for a little in'«st'pating Who BhouW know most abont the success or failure of Chain Stores to than the Head Man who operates themt And whai does the Head Man of a very successful cham of 383 .toi^s say are the most essential factors in making a chain store payt This is what he says: • ' He gives 5 per cent, credit to Location ; 5 per cent. to Quality of Merchandise; 5 per cent.. to a System of doing business; 5 per cent, to Lower P"ces ; and 80 per cent, to the Man Behind the Counkb. That s how one chain operator figures success. "Another one to prove his contention that success Was largclv Mas Power, transferred a manager from a $1500 weekly business store. The "ej manager in «i^tv davs' time let sales slump to around $500 and Xn to still a third manager, sales bounded up to oler $1500 a week. Enuf proof for me that it was the Man behind the counter. "Then I went to Wobk OB myself. I was going ,0 be Manager of My Own Chain of Stores but me and mvself were the only ones m on this kno^led^e What i mean is I assumed the "sPo'^'^'l-'j^f ^ ius mv customers' stores a success on my productts gust as tho' I were actually Manager. "Mv whole mental attitude changed towards these .tores- 1 was vitallv interested in getting Sales made n mv products not merely Orprrs for my Tjroducts Sure ■ I talked general good business principles. I proved that buying cheap brands to save mone^ was Ske stopping a clock to save time. I defined in simple ems 'Vurnover- of investment; what 2 per cent, dis- ZZ meant i„ profits ; how clean stores and clean cases iacked np sales; what polite suggestions to Mr. Con- sumer did to keep the cash register ringing and what- bnrwhy go ont I preached up-to-date merchandising practices and in a word, I tutored each store just as Krly as if it were Mr store and, believe me, My store had to be a success. Ttu Ttttt* Witt ft * aX^:^ News From Congress _ -AND F E D E R A L Departments lCM««4l m B\NDONMENT of advertising practices alle-ed by the Federal Trade Commission to be misrepresentation has been agreed to by the TT W Crmn Cigar Manufacturer, Barnesville, 11. W. ^^rum ^ o" , , .1 commis- Ohio it was^nnrnceH'anra^y" 2lth by the commis ^^':;^t:::s.^ss.^:^ >« the trade ^ap^ng to.cigars which have some .mperfec tion or do not pass inspection "}4 a>^« "°^ "^^^ ^„de, rr'r t pTcXrwtld latte ? Lked for, the :imequaMtrof cigars had they passed mspection,' the commission explained. Ji„«nntinii- The agreement also provides for the discontinu when such is not the case. CJ3 C$3 Cj3 by the planmng bo"*\°^'Yators' Association and the ?'?''•»»»: cTmSe oT ConflicUng Taxation, the Interstate Comminee ou situat on resulting '''"The 'outstanding proposal laid ^fo-J,»'X'tax ence was a recommendation for a *f e-^l ^^^fj^^^ to be applied to all manufactures th^reven which would be divided between th^e r eoer ment and the various states This, it wa j would meet the desires of those who favor an ^^^ ritil.^ratt^th:rLtrof%t^^^^^^ such a proposal would be BuPP^o^-^^^^^y^^^/^"^^^^ industry because the .?™era' ta» "PV" ^j ^ y^. likelihood exempt arti^es now subject^ to^d ^^^ eral taxation, thus ®/"";"^"3^„ experienced in the sales tax states. Febmmry t, 19$$ From ou« WASmHOJQHm^M^Z^^^I^^^ MPLOYERS in the tobacco industry will be Subjected, beginning January 1st next, to a navroU tax for unemployment insurance and, beginning the following year, to a similar levy for old-agf insurance, under legislation ^troduced m Congress^in conformity with a message on the subject from President Roosevelt. , -r^ , i The legislation calls for joint effort by the Federa and lute lovernments employers and, in the case of nUl-ao-e insurance, employees. The payroll tax lor uu employment insurance will start at one. per cent and hv January 1. 1938, is to reach its maximum of three ,,L cent Beginning in January, 1937 employers also vUl be renu'rld to contribute toward old-age pensions, he initia? rate being one-half of one per cent., to n- the initial raie ueiiio Employees are also crease by 19=J„\° i^f^Pf' ^ee at the rate of one-half to contribute to this insurance, ai luo ■ , , .u ^ r>f nnp ner cent of their earnings. It is piovwea luai- *"r„ZT(. »* f« .reJiling to mpl.J.''» •» charges upon employers in states udviuo laws than would apply in other states. CjJ CS3 Cj3 OLDING that the experimental Perjod of NBA has not vet expired, members ot the ^^at'onal Industrikl Recovery Board "-e urging that the new legislation to be enacted by Congress tms rereV^acrran^Udit^r;^^^^^^^^^^^^ substantial change ^^ ^^^ ^^^ ^^ very lar'g'ely n theTerAtory of studying the operation rnd'th^reJults of .various codeprovisi^^^^^^^^^^^ -^ that upon the ba«'« »« *e fact« «« ^^^^^^^^ „f p,o. result,conflrmationof policy ana ir visions may be established, ^^ff '^°J^„7"'„iiey or nro- and amendments or ehminat.on« indic'Se that proce- LILLIAN RUSSELL 2 for 5c CIGARI CIGAKS P. LO'RILLARD CO S Quality 2 f^^ 5^ Cigars Meeting the public's demand for quality cigars moderately priced NEW CURRENCY CIGARS 2 for 5c Our Other Popular 2 for 5^ Cigars ..*.i?c n RIA1NE • • POSTMASTER trFRAOSr. SARONA . WAR EAGLE TOBACCO TEADK ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES ^ rESSE A. BLOCH. Wheeliof. W. V». .. Cuts llCHTENSTEIN New York. N GEC^RgI H HL^MELL. New York N HHSH ELTON. Washington. D.C .. £^K^S's'-£[X!^W,;^v^.VN ■ Preiident Y* v.'.'.*.'. . . . .Vice- Preiident iaiiirain Executive Committee Y : ." Vice Pre.ident J Vice President * Vice President \ Vice- President "."."..,.. Vice- President Treasurer yV V.V. . .VCouniii" «nd Manafiot Director ]!i^^^M irJi.ai»n X;-.;. N.. Vo,V CU, RETAIL TOBACCO DEALERS O^ '^MERICA^ INC JAMES C THOMPSON. Chicago. Ul ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 10HN H. DUYS. Kew York City .".V".'.".".'. First Vice-President illLTuN RANCK. L*nc"ter. Pa. ; ...Second Vice President n EMIL KLEIN. New >ork City Secretary Tre^surw LEE SAMLELS. New Vork City NATIONAL BOARD OP TOBACCO SALESMEN'S -J UNI Presldeot ABE BROWN. 180 Grumman Ave.. Newarlt, «. ■';;;;;;;;;.>;,., Vice President ALBERT FREEMAN. New York. N. Y g^^^^ Vice- President IKVEN M. MUSS. Trenton. N. J " Secretary A STERNBERG. Newark, N. J RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA^ |^",JfiliiA'£VL"«.N.M.v;in;si:;rtV..^^^^^^^^^^ s."-" THE NATIONAL ASSOCIATIONS OF TOBACCO THE NATION^^^.^^,g^^Q^3 ,^^ ^^^^^ {;°0 B. SLUAMBUNG. CU..l..d. Ohio period Of one or two years.. I do "Ot ^^^ ^e'ld became To attempt Permanent legislat on Jii^hathel^^^^ ;"*\"'^tTira'Crtha? we oKe snre would be "atMacto y I iher'^f ore hope we may keep the ac as satistactoiy. ^i necessary for deter- ;!u;£ust whaf^should b^e made permanent and m just what form, for best results. (JJ Cj3 CS3 XRAIPTION from the minimum wage rates of the cigar code has been granted the Orrison aga^Co., Bethesda, Ohio, by the Industrial Anneals Board, approving an order of the Katio„/C^:ry\dm^^^^^^^^ The company was of eighty-five.cents per 1000 and roler ^^ ^^^ "h;°ill' «St ft. .pp.* !»■"» •»'? "■?' "r. .„ X'opS. lU tui Pi». r..» njake .J.,u. •"i;r r.;™ sr. ;;.'«& „, .., urnvfi^^ in piece rates may be made to equalize competitive wage scales. TOBACCO SALESBIEN OFFICERS •it^t Frank Sobel 72 Williams Street, Newark, S'^f s^re^I?? • A?be t Freeman, 25 W. Broadway, New'YoTcll^ treasurer; Irving Payson Zmbarg, 305 Broadway, New York City, counseUor. ; \j' > ..s UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION LTEMAN"H.TAm;'3blW.Buildin.Vpi.Vl^^^^^^ P. '.Sacrf IT 8M0KIN0 PIPE AMENDMENT Obiections or suggestions concerning the proposed amendmen to the smoking pipe industry code, prov.d^ tng ThaTno employee shall be ^-f "eV^^.^^p'^^^ty complaint of code violations, must »^ "'^f J''" ^W Administrator W. L. Schurz, joom 402, ISlf K btreet, V W Washington, D. C, before February 4, 1935, it was ainouS by the National Recovery Administra- RADIO S SENSATIONAL LAUGH TfAM Wirn JOSEF BONIMES ORCHESTRA AND GUEST STAR - AND PICK and PAT and Baltimore ^|"? Boston SsIh Buffalo 51aQ Detroit SwBC BONIME'S Friday Saturday Friday Friday Friday Friday KoBday Friday Friday Tuesday Friday they're building for DILL'S BEST Los Anteles KFX Madison Xlwr Milwaukee WTMJ poriUnd,Me. WCSH Portland. Ore. KEX Friday Friday Friday Friday Friday Wednesdaj "see ymir locAL mm. mowAi usmw lilfrieCltylDYL Monday sin Francisco |GO Friday ScbejiecUdy WGY Friday^ KHQ Monday WRC Friday WTAG Friday AND 1 Seattle Spokane Wasblncton Worcester WTIC «nu«J I 3tt iwwn •«'»-»- _____^ Cigars Up 252 Millions in 12 Months ^ ,, T^««.na«P Little Cigars : no^ .n qqa ^ 12.1 Calendar Year 1934 -Decrease 4-Inerease Quantity Cigars : Class A— United States Puerto Rico . . Philippine Is. Total Class B— United States Puerto Rico . Philippine Is. 239,403,275 2,050,105 23,001,420 3,929,126,205 + 58,193,050 4- 209,262,595 -\- 58,027,116 + 27,188807 1,849,550 - 1'286,2W '512,634 + 3^^>^^_ 26,218,297 Total 60,389,300 •1- Little Cigars: United States . Puerto Rico . . • Philippine Is. . Total Cigarettes : United States Puerto Rico . . Philippine Is. Total Large Cigarettes : United States Puerto Rico . Philippine Is. Total ... 221,411,386 - 12,962,426 2,291,000 - 98^»2^ 16,800 + 16,800 223,719,186 + 11,996^26 .125,611,688,759 +^3,848,247'^^^ 4,175,420 4- 709,820 2,028,220 4- 551,730 ;^^r^i^^;^^^ 4-13,849,559,160 88,170,539 + 476,000 — 200 — 88,646,739 + Class C— United States . Puerto Rico . . Philippine Is. Total Class D— United States Puerto Rico . . Philippine Is, Total Class E — United States . Puerto Rico . . Philippine Is. . Total Total All Classes: United States Puerto Rico . . Philippine Is. Grand Total Febrmry /, t93S 565,369,540 — 790,050 4- 243,116 4- 566,402,706 -- 40,645,441 — 2,500 4- 3,7W 4- 7,330,026 10,990 9,546 7,309,490 5,477,82t) 1,50' A. SANTAELLA & CO. ' ^c U81 Br.«lw.,. N- York CilT rACTORIES. Tamp,, and «« ^•"- """" 0«« HIOH.O.ADE N0N-EVAl>01iAIIN0 niVORS toi iV»G «* CHEWmC TOBACCO Classified Colximn Mtictly in «dTmnc«. ....J;. Box No. 580. "Th. Totacco World. __ " „^w»N HAVING 13 YEARS- EXPERIENCE ON CIGAR FOREMAN HAVING ^^^ ^^^^^ ^„„„. Automatic Machines, w*"^' • P „ Addr«. Box No. 558, "The Tobacco World. 3..ory ."- c°n-t.d b«.m nt Wd^. J^^^_^^^ rrrr.r 5l"'J».Vin, -hin- - «oo. S« A. Ka-«. ^ & Bro, York. Pa., (or impccfon and dcUlU. Tobacco Merchants' Association r» 341 Madison Ave. Registration Bureau, new york cm Schedule of Eat«i for '^\^^ ^'^'^ Effective April 1. i»"- fiegistration. (see Note A). $500 Sefrch, (see «»»* B). l-JJ Transfer, „ ^^ Duplicate Certificate, ^. REGISTRATIONS JUDGE PRIEST-.-46,404 For all tobacco produC. January 11. ll'^l'oK-iw«2"^o"r^'orcr;'iu^ches, cigar and .^ * J^nu°r^'^93r Rogers ln,p^>rt!L'"' ' "'* TRANSFERS SILVER * OpLD.-«75 ara^e-MarU R^^^^^^^^ J.'.^^^- ^^ istered October 22, 890 b> Jl^m.l Me ^ ^^^ ^^ the original reg- ^t^:'\^^!::^^U^-^^' BrooUl>n. N. v.. January 5. Mk^rLETON:-45.5p (Tobacco Merchants^^^^^^^^^^^ ^ rr'^^r!^^ ^^oJL.^. Inc.. Passaic. N. J., Jan- rettes. cheroots and \9b^"°;,.^'4''Y Through mesne transfers Steiner Sons & Co New York. N • J • ^, ^. y.. and rc- ?s:^Vd^o^^Lt^^^^^^^^ ^- ^■' ^^--^^^ ^'' ciARIOTA:-30.22l (Tobacco Leaf). For J^Y^bv^T'Twadl: '^^j'ofs and tobacco.. R^^^Tugh^Tesne fransTers 'a^qui^^^ by the worth, Detroit Mich P'^""^^ ^'^' "J. Y.. and re-transferred to Consolidated L.tho. Corp.. Brooklyn y^- • ^j ^935. I. Lewis Cigar M^. Co;. j^!'^^y!i. Record). For cigars, cigarette* LA JUANOS:— 25.^1 (Trade-Mark Kecora^». ^^^.^^ ^^^^ ''and tobacco. Registered December 28^^ ^ ^ Con- Co.. New York. N. Y. Through mesne i re-transferred to L solidated Litho. Corp.. Brooklyn. N. Y ana Lewis Cigar Mfg. Co.. Newark N- J-. Jan"*^^ 'p ^5 ^rs. Reg- LA SPARTANA:-18.795 (Trad-Mar^^^^^^ ^^^^ K^ Y ,. istered February 16, ^898- by K Heppe Consolidated Litho. g™^:, bT^I?^. v', lnd"»rred to^. LewU Cigar M.. MM'AT:i.Ui '^f^Si^,^'^'?:^^:^r^ c^ Cheroots. Regif*e^*4^*^P*rme.ne transfers acquired by Consoh- Kew York. N Y. Through mesne t^^^^^^/.^^^^^^ferred to L Lewis dated Litho. Corp ^'^^^y'^'.^J^l.^ryV, 1935. Cigar Mfg. Co.. Newark. N. J;'/^^]^^^^ ^'l riirars cigarettes, che- LA VARAT-33.902 (Tobacco World). For c,gars^^^^ ^^ roots, stogies, chewing and srnoking to»>^«?- »^f^ York. N. V. ber 9, 1912. by Kauftpan. Pasbach & vm ^ ^ ^^.^^ansferred Transferred to H C Mansky, New York N J ^^^^ to Nic. Althaus Co., New York, N. ^ -, J*"" ^r,dL Send Two Dollar., with the -^P-^^^;^"^^^ Tobacco World. 236 Chestnut St., Phila.. l-a., an get your copy twice a month for a yewr. Name. HAVANA CIGARS LOVB-Adopt at your •»<>«»»• ^»J ^^^^ the iMt Puff." s::„^t ra^ rtt. o^. t, ..* x-.. fte. WrH« Aon for partknlart today. Street No.- P.O. 3tate VOLUME 55 No. 4 C O MMON_SE]:i^ fine cigars is recognized by the progrc present analytical market are p AUTOKRAFT cigar boxes. XuTOKRm BOX CORPORATION. Phi/a., Fa. Hanover, Pa- Cincinnati, Ohio York, Pa. AiiTOKPAFT BOX CORPORATION Chicago, m LIMA OHIO Wheeling, W. Va. A NatioivWiAe ScrVicc ^^^snnininnniiniinniiiinni^^^^^^^^T^ st.. phila.. pa. ^ .KTU OF EACH MONTH Al '^■ao PUBLISHED ON THE 1ST AND 15TH OF EA ^^^^^^^ THE TOBACCOWORLD ^ After all nothing satisfies hke a good cig— WOODEN BOXES the Only Natural Humidor for Cigars. Pack you, cigar, in »o<>de„ boxes and preserve Li, delicate aroma, mello«ness and flavo Z> up .o the •»« <^y '" "''^ ""' * counter to the customer. Di«,in,ina.ing cigar .moke,, p,eler to J^ ,hei, favorite brand bom a wooden box-and ,t . Tooi bn,ine„ to cate, to the ^"^ '^^^^ „n,e, by packing ,.u, ciga,, in wooden boxe,. ^HEN BUYING CIGARS THE BEST CIGARS AHE rkotxv i> WOODEN BOXES Vol 55 t i^tiiLruinK about the incident of J -HAT wa« "'.°f '"^,!,'fnLouiBviUe offering' .tand- I that cut-P"'"',*'*?' "u°; at 4 cents a package ard >>'«"ds ot ciga ettes ^ 4 c ^^^ — with every bottle otliquo , j^^^jerstand- later explanation that it ^f» ''"V"^,^ cigarettes. He ■ , of the NBA code on the sale oi » j ^3 pents a ',t „• know he had to njamtam a pr>ce o^^^ ^^ .a kaee That's what he «aid. .The" ^^^^ ^^^ htnk he did! He advcrt.sed that ^^^^ ^^ are agarettes at tire P^.^^^^^'^fpS'se you nrake 9 cents reducing the P"^ .° .^Jfth the NBA and the public a^d ti;?tKep»'gf»"^' tj3 CJ3 t?3 »«» 'contains o-'y. ^^rwi u" ca^ U a "compro- aent, not entirely satisfied ^ith^t^ ^^^^^^^ ^nd plan- uWe". He has d^eeted tl.e ^^ conditions in the x'o \ Thp code calls lor a "»° .:„-,miini wages oi ««J r «e oe ^3 to only ,i,aic4,e inanu aetuvnig com^^^^^^^^^^^ lourlceii ill 19ol- " ^^"s , j jjjg cigarettes, ,i..s produce more than 9^ P«™, cent, of the total, and t\iat four of »><;"' P^-^J^^^^rare Beynolds, Lig- These, known as the B'B Lorillard. sett & Myers, American, ana i^" [J3 CjS CJ3 r "There is nothing new under ^HK old saying. There is ^ ^^^^^ ^^^^^. the sun," IN of eou'se, ra jj theless, ,__ ment, says The UndedShM ^ ^^^ I™** many things «'l"'*„^'t'ain general acceptance perhaps forgotten >«f;^,.Xcld to us moderns An 'as heing new when •°°^»^'J ^^^ field of endeavor apparent example of this in our o ^^^^.^ ^^^^^ U he lioh'-in-the-ni«uth-end teaW .^ ^^^^yy oleigarsnowontieiiaike^^^ 1^^^^^^^ ^^^^^ as renanlod hy niost tolks wl.y .^ „ay, it.ap- something •elaUvely ue ^ • »« ^ atented sixty ,,ears that the hole-m-the-ena wea ^^^ vears ago. According to a eoPJ °» P\i„„treal, by the ,ate It ;as issued to Mona Lessei, ot ^^^ l).,mii.loi' of Canada, ,?>' f^^^,, ^bove the drawings '' \ndrogvnous Cigar, aPPfars a inventor aJconipallyi"-, t'-^^^.^s never be known, unless selected that name « P^'fXt here was a smoke for it was intended to " ^x^^^^^j^i^iv, the first name of the l,„tli men and women. Lertaim. , hwentor has a female sound. CJ3 tJJ tj3 JK making public ^^^^tJ^^:^^ " the wage rates P'^^*'"' mo 4(» per cent, in the ,__, result in a" '"'•'ttiUed workers over present I*™ earnings of un^-kdled v, ^ ^. ^_ rates. These latter ratc^-^^^tgust, 1933, when the Vi'iffher than were paia »^\"\__,ent agreement tor tnt loiir minimum tor P'-,?;^^[;':^;c ^cents an hour is set " of 25 cents an hour. tJJ [^3 tj3 . I possessed a shop or store, rd drive Jie grouches off my two"-- ^ ^ome to buy. ^— Kloomy guy offend the /ojks wh^ ^.^^ ^^^^^ ^^ I'd never keep a gjrl or ^^^^^ . >„.l,ache at her work, nor let a '"an ^^^ : ' d,.ive any customers awa>^ d treaty ^.^^ akes niv time and spends a nw^'^^^ pleased to make 1 !• „ml make hmi teel that 1 * *^f j-e may become Hkal tcau«e tomorrow w^ioeaji te", he ^ y ^^ ^ ^ L ,t-ii as -ell, and "Vj^"* ''^^ile reason people pass "pe d ">* dollars al'.^'t^^ "J^; ^^^JoX is not because one door to patjon-^e another sto ^^^^^^^ ?e busier place has better cigareue Ac" but it lies in pl<"V"'"\i^;c i,Tn the treatment 'The bigge?t difference I beU^^^;,^^ prose poem on folks .;ee«T--*^S:,*by pin an orchid in the ^ape^of C^'a^Y^tes; of United Cigar Store No. 3232, ^^^^ Plains, N. Y. The TOBACCO ^^^^^^oftce 236 Chesinm^-r-' ear 20 cents a copy, l^-^fb December 22, 1909. at the ro pHIbAt)El2§>MIA. Price Control Fulfils Prophecies BAYUK BREVITIES ECOLESTONE lias joined the Bayuk sell- ing organization and will work in Ohio under P. T. Morris, territorial manager. He was associated with the Cleveland branch some years ago . . . li. J. Fellows, of Bound Brook, N. J., is maintaining his momentum in the sales and distribu- tion of Bayuk cigars and was recently assisted by C. H. Wright, Bayuk salesman, in a very effective drive . . . Leo Tighe, Bayuk territorial manager for Northeastern Pennsylvania, with his usual vim and vigor, is hitting the ball hard in the sales of Bayuk Phillies . . . Xe^vspapers have announced the wed- ding of Eddie Bayuk to :Mrs. Constance Lewis, of Beverly Hills, ('alifornia. They will live in Lancaster, where Eddie is engaged in business for the company . . . The George C. Runyon Tobacco Co., Sturgis, Mich., is starting off right in the early months of the new year on Phillies, and the factory is receiving orders regularly for the brand . . . Phillies are in heavy de- mand in the Windy City, where Zolla Brothers dis- tribute Bayuk products. Jake Mendelsohn, Bayuk salesman, reports that dealers and consumers are'ac- cording the brand a nice reception. G. H. P. DOINGS KAXK P. WTliL, executive vice-president, and 1). A. Jenks, assistant sales manager of the G. H. P. Company, will attend the convention ^ of the National Association of Tobacco Dis- tributors in Chicago. Dave Jenks says that, from re- jwrts the company has received, every jobber in the country will be heading for the big doings . . . Mr. Jenks left on Monday for Boston and other points in the East for a few days . . . Ben Berman, sales mana- ger of D. Kerman and Sons, Milwaukee, arrived on Thursday for a conference at the Third and Brown headquarters . . . M. Cooperhouse has joined the local sales force and is working in the midcity district, as- sisting H. Snyder in the promotion of ElProducto and La Azora . . . Moe Gordon, city sales manager, has just returned from a trip through the territory, getting as far away from home as Hagerstown, Md.* The American Tobacco Companv has appointed N. W. Aver & So, Inc., to advertise Half and H^ smoking tobacco. Trade Notes Yahn & McDonnell report that the new Blackstone Yankee is forging steadily ahead, as well as sales of the Blackstone Panetela. The Royalist factory, North Second Street, re- ports that business is showing a substantial pick-up and orders are coming in in such volume that their I)lant is running to caj)acity. Members of the industry who have been visiting factories in Florida and Havana, including Harry A. Tint, who operates the high-grade stand at 1420 Chest- nut Street, and John L. McGuerty, who represents the Romeo y Juliaet factory, are reported to be on their way north and will arrive beifore the end of this week. Frank Llano, representing Berriman Bros., Tampa, Fla., was a visitor in town this week, visiting Yahn & McDonnell, who are the local distributors for his brand. Since radad. Mr. Llano is also showing a new product of Berriman Bros., under the trade name of Cigarillos, a long filler all Havana smoke, retailing at five cents for a packj^e of two cigarillos. George Stocking, Arango y Arango factory, manu- facturers of the Don Sebastian, is in town this week visiting their loc^l distributor, John Wagner & Sons. Mr. Stocking reports that business on his brand is highly satisfactory, and this report is corroborated by the Wagner House. Ben Lumley, representing Garcia y Vega ; Herman Abrams, representing the Medalist factorj% and W. S. Anderson, representing the Antonio y Cleopatra, are all sojourning in the Baltimore and Washington terri- tory, where they report business showing increased ac- tivity on their brands. It looks like a conspiracy, or jealousy, when they all happen to be in the same terri- tory at the same time. Tkf Tobacco World By ARTHUR S. MEYER APPEAR in behalf of the Retail Tobacco Code Authority and of the industry that that Code Authority represents. T also appear in behalf of the great majority of the alien purveyors of tobacco products. A member of the retail tobacco in- dustry is one whose principal line of business is the sale of tobacco products at retail. An alien purveyor of tobacco is one who sells tobacco i)roducts at retail but who lias some other principal line of business. Druggists and grocers are the outstanding alien pur- veyors of tobacco products though department stores, restaurants, candy stores, barber shops, gas stations and others fall into the same category. Alien purvey- ors retail something around 50 per cent, of all tobacco ])roducts and the term is used to point an important distinction and not as an implied criticism of such pur- veying. The total number of retail tobacco outlets has been calculated as approximately 6()(),(X)0. Of these a comparatively small number, not more than 9 per cent. are branches of national chains and the balance are nuiinly inde|)endent shopkeepers averaging an annual volume of less than $10,000. The huge tobacco busi- ness of our country having an annual retail value of a billion and a half dollars and concentrated on the manufacturing side almost entirely in twenty hands (with three great companies accounting for more than one-lialf of the total amount), is therefore scattered on the distributive end among more than a half a million retailers of whom over 80 per cent, are small shop- keepers doing a total business in all the lines that they liandle of less than .1;10,(X)0 a year. For reasons that 1 shall refer to later and which rest in part on the conditions 1 have mentioned, the Kf'tail Tobacco Code Authority asked and was granted H large measure of price control. As regards cigars, the Code itself provides that the manufacturer shall fix both the retail selling price and the discounts that shall be granted to wholesaler and retailer. A max- imum discount is provided but no provision is made Tor minimum discounts nor for the control of the manufacturer's list price, so that competition among manufacturers is not impelled by the provisions in question. As regards cigarettes, a. department order dated July 12, 1934 and renewed October 13, 19.34, provides that cigarettes may not be sold for less than list |)rice plus 6V2 ^r cent, except that lO-cent cig- arettes may he sold at list price plus 5'^ per cent. The cigar provisions »»f the Code became eifective on Octolxu- 29, 1934, the ci«;arette provisions became effective on July Ifi, 19.34. Enough time has therefore (lapsed to consider the application and result of these provisions in relation to the criticisms of price control most of which are either explicitly or by implication referred to in the release dated December 17, 19.34, pursuant lo which this hearing is being held. These criticisms are of four kinds: (1) The provisions will not function because no ^vstem of accuiate cost accounting can \m evolved. (2) The provisions can not be enforced. (3) The provisions are opjiosed by the majority or by a sizeable minoritv of the industrv. l-ebrum-y 1$, jgjs (4) The provisions are inconsistent with the ef- fective functioning of our economic svstem. Disregarding for the time being the somewhat comi)lif'ated fourth criticism, 1 shall comment on criti- cisms one, two, and three, in the light of the experience of our Code Author it v. (1) The provisions will not function because no system of accurate cost accounting can be evolved. Cost accounting is not a factor in enforcing min- inmni prices under the merchandising provisions of the Retail Tobacco Code. The retailer's merchandise cost is a known (piantity and though differences of cost and overhead exist and were weighed in evolving just merchandising provisions, tlie machinery of the mer- chandising provisions realistically disregards these dis- tinctions, and cost accounting is therefore not a factor in the enforcement problem. (2) The provisions can not be enforced. The merchandising provisions governing the sale of cigarettes have been and are being enforced almost 1(M) per cent. Since the elTective date of the admin- istrative orders, less than a dr)zen instances of inten- tional noncompliance have l)een l)rought to the atten- tion of the Authority. The merchandising jirovisions governing the sale of cigars have been enforced practically 100 per cent, save in three or four towns where an alien purveyor has initiated court ])roceedings to test the constitution- ality of these provisions. Such infrequent cases of non-conii)liimce ditTer, it should be observed, not merely in degree but also in kind from the non-compliance which indicates a breakdown in the morale of the indus- try and in the enforcement machinery. It is one thing to have the members of an industry evading the pro- visions of their Code. It is (juite another thing to have some half dozen, out of a total of a half million, pur- veyors stand openly on what they believe to be their constitutional rights, thus creating a purely legal prob- lem which is obviously beyond the proposed scope of this conference. In passing it should be mentioned that the co- operation of the administration would l)e helpful in disposing of these litigations, for the Department of Justice has informed us that they are not pushing these cases because they are doubtful as to whether the ad- ministration desires to have its codes enforced. (3) The provisions are opposed by the majority or by a sizeable minority of the industry. Within the industr>' proper the Code Authority knows of no instance (national chains, local chains and independents all being included) where the merchan- dising provisions have failed to receive complete ap- proval, and although it must be taken for granted that among the alien purveyors there are some who, being opposed to price control, particularly of trade-marked merchandise that can be used as an advertising lure, must by implication be opjiosed to price control of tobacco products, yet the vast majority of alien dis- tributors, including nearly all druggists and most grocers, favor the continuation of these merchandising provisions. The fact that this assent of the industry is ob- viously one of the reasons for the accuracy of the en- forcement suggests the more general question which must be of peculiar interest to this conference: Why has it been possible to enforce the merchandising pro- visions of the retail tobacco code to a degree that has surprised even its most optimistic proponents! Rec- ognizing that the simplicity of a technique unhamp- ered by cost accounting, and the morale of a united industry unhindered by any important minority are two of the factors, what other causes nmst be added to account for this eminently satisfactory result! The merchandising provisions introduced no revo- lutionary changes. Cigars have for generations been sold at prices advertised by the manufacturer and have on that basis been taxed by the Federal Government. Therefore, although jirice-cutting had been prevalent prior to the adoption of the Code, the practice had been recognized as pritv-ruttiug by the public, who were, therefore, not disturbed by what they recognized as reasonable price stal)ilization. In regard to cig- arettes, the average advance resulting from the admin- istrative order was com])aratively slight and was in- tended to prevent a relapse to previous chaotic con- ditions rather than to l)ring about any sizeable price increase from existing levels. In i)oint of fact the min- imum price of cigarettes, fp o per cent, over list, means that the standard brands of cigarettes may not be sold for less than 1.3 cents, or two for a quarter, — say roughly an average of 12% cents a pack. \\Tien it is recalled that these cigarettes cost most retailers 11.35 cents a pack, when it can be calculated that the min- imum will allow him a i)rotit of only 11 i)er cent, and when it is known that the most competent retailers in the industry have an overhead of over 19 })er cent., it is evident that some greater percentage of mark-up might have been made obligatory without unduly en- riching the retailer or offering the consumer any just cause for complaint. In a word, the aims of the mer- chandising provisions of the Retail Tobacco Code were so modest and so logical that they met with consumer acceptance instead of consumer objection and the sale of most tobacco products, and more particularly cig- arettes, has risen steadily since the adoption of these provisions. Statistics relating to these increases have been presented by Mr. Hollingsworth and I shall only add that, while we are not so naive as to suppose that tw^o facts must have a casual relation merely because they occur at the same time, there are three reasons which indicate that the increases in cigarette and cigar consumption are in i)art due to price stabilization. In the first place, the advances have been out of all pro- portion to the advance in other lines, bringing the sale of cigarettes to an all time jjeak. Secondly, there has been no advance at all in the consumption' of smoking tobacco w^hich is unprotected by the merchandising pro- visions. Thirdly, the joblKMs,* depending on the better condition of the industry, have been increasing the number of their charge accounts (the largest whole- saler reporting a 17 per cent, increase) thus creating a broader retail supply to satisfy consumer demand. Not only was the problem of enforcement uncom- plicated by cost accounting, but it was peculiarly sim- plified by the fact that over 90 per cent, of all tobacco products are trade-marked articles whose retail selling price is accurately kno\ni, and whose sale at an un- authorized level would therefore be a palpable infringe- ment. In passing we can not refrain from contrasting such directness and efficiency with the dubious com- plications that would ensue if our exact merchandising provisions were supplanted by some vague prohibition against destructive price-cutting. All of these causes then (the support of the indus- try, the simplicity of operation, and the modesty of the objective) unite to create an enforcement problem sin- gularly clear and possible of solution. The results speak for themselves and indicate a series of distinc- tions which we respectfully submit nmst be understood and carefully weighed if this conference is to lead to the realistic discriminations which are so desirable. The words price control, price-fixing, or any sim- ilar terms, cover such a nmltitude of concepts that they are well-nigh meaningless until those concepts are sep- arated and analyzed. Merchandising provisions of this character in the manufacturing field, subject to all of the hazards of cost accounting and of concealed ar- rangements between seller and buyer, and grounded on a passing need growing out of the depression, are not merely quantitatively but actually qualitatively different from retail i)rice control where surreptitious arrangements between seller and customer are well- nigh impossible, where cost accounting does not enter into the problem, where a tremendous preponderance of the merchandise consists of nationally advertised and trade-marked articles and where prior conditions of i)rice anarchy did not merely fiow from the depres- sion but were part of a continuing condition that de- manded a continuing lemedy. And as a variation on this theme we would j)oint out that the corrective in- fluence of the enforcement of labor provisions, which has been mentioned by the chairman of your honorable board as the possible substitute for price provisions, has little practical significance when applied to any retail trade and no meaning whatever when applied to an industry in which most merchants hire no labor but, in effect, themselves work for wages and, be it added, rather low wages at that. Is it not entirely realistic in such instances to view price control as the eipiivalent of those lalxu- provisions which all are agreed should be adopted and vigorously enforced! It is our first rontrntiou that pr'u <• cnvtrol w thr rHu'd fiehl niiisf hr distinguished fr mikl— and they give you a 'lift' when you need it." DRAFTSMAN. Fraidclm Doininick: "Camels bring back the mmUl alertseas that a draftsman needs." Caniels are made from finer, More Expensive Tobaccos - Turkish and Domestic - th«in any other popular brand. (Signed) R. J. REYNOLDS TOBACCO COMPANY Winston-SaLeip, N. C. You'll like the Camel Caravan starring Walter O'Keefc, Anncnc Hanshaw.Glen Gray's Casa Loma Orchestra over coast- to -coast WABC- Columbia Network. Sr. ?v1 ^A>. TUOOAY l«:tio P.M. F..S,T. •WK> P.M C.S.T. »<)oP.M M.ST 7:OOP.M. P.^T CAMEL'S COSTLIER TOBACCOS NEVER GET ON YOUR NERVES! THUtSOAV 9:00 P.M. f .S.T. •:00 P.M. CS.T. 9:.'»0P.M.M.ST. B:.P.M. P.5.T. Copyright. 193S R. J. ReynoMB Tobseeo Corapuiy Winaton-^lMi, N.C, Febntmy 1$, tgss iioeessity for i^rico control over tradc-markod arliclos which, although llic pritutpal >tock of one industry, are sold by alien pun-ei^urs, for in this latter licld we have the particular condition that leads to the p:rowth of the loss leadei- ]>racti('e in its most ai.'iiravated foiin. When the price is cut outside to bring about a state of complete anarchy. In varying degrees and dui'iug varying intervals tluit has l>een tlie condition in the retail tobacco industry over a long ])eriod of years, and it is im])oitant to note that that contlition was not a nuitter of chance but that it resulted inevit- ably from the \t i\ nature of the business aiul could thei'efore be cured (as it now hapjiily has l;een cured) oniv through the constructive assistance of some out- side power. For ten months ])eginning in March 1938, stand- ard brands of cigarettes were sold l)y a large ])ercen- tage of all retailers for Id cents a ])ackage or 97 cents a carton, although even tiie lowest co>t purchasers were ])ayiug 9-'i cents a i)ackage. This particular orgy of ])rice cutting hapi)ened to be started by the grocers hut like a poison "who>c effect holds such an eimiity with blood of nuin that swift as (piicksilver it courses throuiih the natural irates and allevs of the Ixuly", so this cut once started sjiread with startling suddenness and ti"agical efTect throughout the body of the indus- try. A stone thrown in the water will not more cer- tainly cause ri])i)les in swift concentric circles than will a price cut travel with fearful dispatch over ever widening areas. Faced by the loss of his cigarette volume, and realizing that his reduceer year wi'll be effected for the stockholders of The American Tobacco Company. Thereafter, for .seventy-five years, $2,500,- 000 per year will be saved for them, which amounts would have been payable under the lease. These facts became known as the result of a state- ment authorized for publication by The American To- bacco Company: ''The Board of Directors of The American To- bacco Company yesterday authorized the commutation of the lease dated October 26, 1923, between the To- bacco Products Corporation as lessor and The Ameri- can Tobacco Company as lessee. By this commutation which took place today, payments of rental under the lease are terminated, and the American acquires owner- shii> of the leased brands, which include Melachrino, Herbert Tareyton, Johnnie Walker, Schinasi Bros. Natural, Schinasi Bros. Egyptian Prettiest, Milo, Milo Violets, Royal Nestor, Afternoon, Buckingham, Sweet Tips and Strollers cigarettes and Serene, Arcadia, Her- bert Tareyton, Stanwix, Buckingham, Hazel Nut and Wild Fruit smoking and chewing tobaccos and also Red Band Scrap. (Continued on Pafje 17) Tk* Tobacco World I cbruary 1$, iys5 Tobacco Retailers and Price Control By I. H. LEFKOWITY HILE I am a nieiiiber of the National Code Authority tor the Retail Tobacco Trade, my priiicii)al occupation is the operation of a re- tail tobacco store. I happen also to be the president of a trade association of retail tobacconists known as Associated Retailers, Inc. My own business consists of a single small tobacco store located on a side street, and my customers are principally factory workers and persons of small means. I am also vice-president of New York Tobacco Council and as such represent a majority of the small shopkeepers of the City of New York. Practically all of my life has been spent in the retail end of the tobacco business and I am thoroughly familiar with the conditions in that business during good times and bad times. Since the Recovery Act was passed I have acted as a representative of the small tobacco dealers in the making of the Retail Tobacco Code and in the course of this work I have been forced to give even more study to conditions in the Retail Tobacco Trade. I have* traveled to other cities and states. I have talked with other retailers and associa- tions of retailers from all over the country and hon- estlv believe I can qualify as an expert witness on con- ditions in the Retail Tobacco Trade. At the very beginning I want to say so strongly that there will never again be any doubt on the point that the code of Fair Competition for the Retail To- bacco Trade is the result of a demand from every part of the country of the small tobacco dealer. The report signed by General Johnson when he sent the Code to the President states that it was originally proposed by the retail dealers. If anyone says that this Code was made for us by the jobbers or the manufacturers or even by the larger retailers, I can answer from per- sonal knowledge, that he is not telling the truth. At the public hearings of our Code, our attorney filed written proxies of about 250,000 retail outlets and in each of them a special plea was made for the ap- proval of this Code. Almost all of those petitions were made by the small shopkeepers of the country. The Board might be interested in the figures from the last United States Census which show how the retail to- bacco trade is made up almost entirely of small inde- pendent one store dealers. This Census shows that 5K),2 per cent, of all tobacco stores were independents. These little shopkeepers only did an average business of $9,190 a year but taken together they did about two- thirds of the business done by all retail tobacco stores. Two and three store independents ran 2.7 per cent, of the stores and did 6M per cent, of the business, while national chains had only 4.3 per cent, of the stores of the country. So you see first that only one store in twenty-five is a member of a national chain, and sec- ondly that almost two-thirds of the business is done in stores that sell less than $10,000 a year; 18.4 per cent, more of the volume is done in stores that sell be- tween $10,000 and $20,000 a year. It's this great number of small shopkeepers, whose interests are tremendously aifected by the Code, that I must try to represent today. And when I think of all the small grocers and drug stores and in fact all the half million little men who sell tobacco, and that in a /9 way I represent all of tliem, it makes we feel a great responsibility. I never wished so much that I was wiser or had more knowledge because I know that I am speaking for a just cause, and that if I were only able to find the right words and make you feel the facts you'd have to decide to continue the price provision in our Code. You see I know of my own knowledge the ter- rible conditions that existed before we had the Code. If you were interested, I think I could name you a hun- dred men among my own friends who were ruined by tlie terrible price-cutting of the year 1933. Those men had been responsible merchants; many of them liad been successful in a little way and some of them even had assistants in their shops. The assistants, of course, went first and the long day's work that some- times lasts for eighteen hours had to be done by the shopkeepers and their wives. Then their savings went, and at last they locked the door. You see, small shop- keepers can't afford bankruptcy; they just turn the key in the lock when they can go no further. Of course, I can't expect you to feel all this the way I do. The story of poor people is too short and simple to be in- teresting. But I lived with it and when I think of those days, it makes me both very sad and very angry. I shan't take your time by explaining just why and how a cut spreads in the tobacco business. Other speakeis will refer to that and explain it better than I can. 1 want to be careful though to be fair to the big companies and to say that I don 't mean that they have engineered all of the big cuts or even most of them. No, these cuts come from all sorts of causes. A big department store may decide to sell cigarettes for the cost of the revenue stamps. WTiy not, it's only a tiny part o\' tlieir volume and will cause a lot of talk. A baby department store, calling itself a drug store, will sell brands of popular cigars at the retailer's cost. Isn't competition the soul of trade and doesn't it make grand advertising, particularly when cigars are 2 per cent, of your business and 30 per cent, of the other fellow's ! A chain of grocery stores will decide to go on a three months' spree of selling cigarette cartons at cost; ha%^en't we a free country and who would want to in- terfere with the enterprising merchant whose only ob- ject is to help the consumer! But I can't begin to tell you all the ways in which cuts start in the Retail To- bacco Trade. I can only tell you that when they do start they spread quickly, and continue for a long time, and that the retailer is made to suffer cruelly while they last. I can also tell you that our Code has cured this evil and that for the first time the retail tobaccon- i^*t is shielded from the depredations of what we con- tend is grossly unfair competition. Is it any wonder then the whole retail tobacco industry, and especially the small retailer, stands squarely behind the Code! After all, what does the Code give me. It gives me a gross profit of 11 per cent, on cigarettes, whatever the manufacturer may allow on cigars, and for all practical purposes nothing on pipe tobacco. I'm a fairly competent man as shopkeepers go and after I allow myself a salary of $40 a week, my business does a little better than break even. My volume has gone up about 15 per cent, and continues to increase slightly. It doesn't sound like anything to boast about when Tkf T9km€9 W0fU SO Jar as we know tobacco was first used about 400 years ago —throughout the years what one thing has given so much pleasure.. so much satisfaction fi* Early CoUmial planters shipped hun- dredt of pound* of tobacco to England im return for good* amd supplU*. r / ^r ^^£^rr£y ^^;sC^ They came looking for gold . . . but they found tobacco ...and tobacco has been Hke gold ever since! The tobacco raised in Virginia and ex- changed for goods helped the struggling colonists to get a foothold when they came to America. Later on, it was tobacco that helped to clothe and feed Washington's brave army at Valley Forge. Today it is tobacco that helps — more than any other commodity raised in this country— to pay the expense of running our Government. In the fiscal year 1933-34 the Federal Government collected $425,000,000 from the tax on tobacco. Most of this came from cigarettes —six cents tax on wery package of twenty. Yes, the cigarette helps a lot— and it cer- tainly gives men and women a lot of pleasure. Smokers have several reasons for liking Chesterfields. For one thing. Chester- fields are milder. For another thing, they taste hetter. They SaHsJy. ® IM9. tiGcrrr ft Mvns Tcmaixo Co. hebrmry i^, 1935 it I compare what I liave now with my condition be- fore the Code, I seem to be living in clover. I can pay mv bills and take care of my family and I don t have to worry about turning the key in the lock of my store. Of course, that's not much of an ambition but most people have small ambitions; and I'm not telling vou all about it because I flatter myself that any one is interested in me, but because I believe that some ot you oentlemen will be interested in the 500,000 people thot I am trving to represent and whose position is very much like mine. Their worry today, like mine, is that vou mav take awav the little that has been given to them and thev tell you, through me, that it .iust seems unthinkable to them that you should do that. When our President took office and when the new deal was announced, it opened up for men like me a new hope, it gave us a feeling that was almost secu- ritv. What we felt was that for the first time we had an'administration that was interested in our problems and recognized that we were really a part of the busi- ness world that needed help; yes, I think the part of the business world that stood most in need of that kind ot interest and assistance. You will understand what I mean when I say that to destroy that new found faith and hope in the hearts of millions of your fellow citi- zens is even a graver step than to take away that first little glimmer of economic benefit that its Code has o-iven to the retail tobacconists of America. Makes Cigar Boxes for Royalty By GEORGE HOLSTEN ^HEN Princess Marina of Greece recently be- yjfm ^**"^^^ ^*^^ ^^^"^^ ^^ Prince George of England, at least one New Brunswick industry wa,s represented at the elaborate reception in Buck- ingham Palace. Cigars made by the Henry Clay and Bock Companv of Trenton, contained in special cigar boxes made bv Alexander Ungar, Inc., of 26 Wat^r Street, were served to the guests, who included all the royaltv and prominent personages of Europe and many from the United States. , .r^ i- ,u The special boxes, approximately lUuO ot them made to fit the famous La Corona brand, were made on a special order from the royal family. They were gold encrusted and contained a picture of the royal bride and bridegroom on the cover. This is not the first time that the local manufac- turers of cigar and specialty boxes have made cigar containers for royalty, and for some of the most prom- inent business and professional men in this country. Bfakes Boxes for Kin^: The Ungar companv annually fills a large order for King George V of England for specially constructed boxes made to contain a cigar that is built or made to his order bv the Trenton cigar manufacturers. The box, larger than the ordinary standard cigar container, is heavily labeled with gold, and contains the royal crest in hea\ v gold stamping. At present the cigar box manufacturers are work- ing on boxes covered with silver foil for the silver jubi- lee celebration of the twenty-fifth anniversary of the reign of King George V. Each box is covered with the foil and privately stamped. Six thousand of these boxes have been ordered. . One cigar smoker in France and several m tmg- land and Germany annually purchases a large cabinet of cedar and redwood, made to contain 10,000 expensive cigars made in this country. Alexander Ungar, Inc., makes these cabinets, the special boxes that each ^n- tains and ships them to the countries mentioned. One purchaser of these special cabinets buys three or four a year. ^ . ^. Special Boxes for Argentine One of the featured boxes of the local company is the very light box made for export to the Argentine. Extreme lightness of weight is at a premium in this trade and the local corporation spent many months in working out a box that was very strong and at the same time very light. Besides all the special jobs the company manufac- tures millions of boxes annually for the General Cigar (^ompanv in South River, Perth Amboy and New Brunswick. These boxes handle the White Owl, Will- iam Penn and Robert Burns brands. On individual order a cabinet maker at the plant makes cigarette and cigar humidors some of which are works of the exquisite art of the careful woodworker. Famous businessmen, politicians and others have made use of this service to eiiuip their homes. The order file of these individual cabinets and humidors looks like a Who's ^^^lo. There are names of famous men in every field. In the campaign in which Hoover and Roosevelt* were opponents. Hoover had the cigar box company make up a large order of boxes for a particular expensive brand of "campaign" cigar. Everv so often the company receives its regular order from* Edward G. Robinson for the box that is made to his order. The cigars are made in Trenton. During recent months the cigar box company has been expanding its business to include the manufac- ture of all sorts of novelty boxes, including mirror boxes, cosmetic boxes, cigarette containers and other novelties. Reprinted from New Brunswick, N. J., Sunday Times. NEW ADJUST21ENT CONTRACTS OUNTY Agents in tiue-cured, Burley, fire-cured and dark air-cured tobacco-producing areas have been authorized by the Agricultural Ad- justment Administration to offer adjustment contracts for 1935 to those producers who did not sign contracts in 1934. Requirements for signing contracts for 1935 are exactly the same as those under which con- tracts were signed in 1934. The same methods of calculating the base acreage and production will be used. Rental and benefit payments will be made as provided for bv the contracts for 1935. Growers signing the contract for 1935 will be en- titled to receive tax-payment warrants for their 1935 crops, in accordance with the terms of the Kerr-Smith Tobacco Act. They will not receive payments provided for by the contracts for 1934 nor tax-payment warrants for their 1934 crops. An early closing date will be announced for the signing of contracts, as nearly all growers have already signed. The Ti^Mceo World i^ y SOONER OR LATER YOUR FAVORITE TORACCO A, "WHl- Disccvtixd ftow^ qocd. a. Vipt Can 3e uMioN n»^ EVERtOHEl ., I n v»» L > t R RALEIGH TARGET DIAL jKMGlaMcat] --- lEK^a^ loo,BURLtY Su°XArc'S , BROWN & WILLIAMSON TOBACCO CORPORATION l^uiSVILLE, KFNTUCKY Browa tt WtUMUMon prod^ts are deagied to ts^9 jrtMt the nKMt prate in all line* «ad imcc*. Are you fct- tii« yew tititrt of praAt frosa ttaetc live Kllint items: Sod, tlM largtir wifflm tS-ccat lehrttary 75, igj^ lUdd^ now KllfflC at the prk^ otlier blend of Burleys for a dime ; Bugler. ■ blended cigarette tobM^o f(»^ a nickel; and Ooldea Orain, the big S-cent iMg of roU-your-own. '3 Shortage on Fire-cured and Dark Air-cured I Relation of Price Control to Competition if HE 1935 crop of fire-cured and dark air-cured tobacco to be oft'ered for sale will likely be somewhat smaller in volume than the total sales of the 1934 crop of these types, accord- ing to a statement today of J. B. Hut son, Chief of the Tobacco Section of the Agricultural Administration. The Tobacco Section has been in close touch with the developments in the lire-cured and dark air-cured re- gions since the markets opened and has conferred dur- ing the past week with a committee of growers from these sections. Mr. Hutson said: "The acreage and production allotment to contracting growers of tire-cured and dark air-cured tobacco in 1934 was 75 per cent, of the base. Very favorable growing conditions in most of the dark tobacco areas made for yields above normal in 1934. Partly because of this and partly because of the ap- parent demand in foreign markets for more lug grades than might otherwise have been marketed, it was de- cided to permit contracting growers to sell up to an additional 15 per cent, of their allotted production in 1934 on condition that their second adjustment pay- ment would be proportionately reduced. "The acreage and production allotments in 1935 will be 80 i>er cent, of the base, but this small possible increase over the 1934 jilantings of contracting growers will likelv be more than otTsct bv other factors. • • "It is now estimated that the total 1934 crop sales of fire-cured tobacco will be between 15 and 20 million pounds less than world consumption last year and that sales of the 1934 crop of dark air-cured tobacco will be about 10 million pounds less than was consumed last year. "Many growers of dark tobacco who did not re- duce production in 1934 have already agreed to reduce plantings in 1935, and yields which were well above normal in most sections in 1934 may not be m large this year. "Therefore, we anticipate that the 1935 crop of fire-cured and dark air-cured tobacco that can be sold will be somewhat smaller in volume than the total sales of the 1934 crop of these types. This should mean that sales of dark types next season will again be under con- sumption level and should result in further substantial reduction in stocks. * * The 1935 acreage of contracting growers will be carefully checked to see that it does not exceed 80 per cent, of the base. If, when this is done, the production of some growers is above the allotted production, the excess acreage will be destroyed. In order to avoid the destruction of excess plantings, contracting growers are advised to plan for an acreage this year about equal to their allotments in 1934. By doing that, they will have a margin of 5 per cent, to take care of differences in their measurements and the measurements of those who check the acreage. In addition, a reduction slightly below the allotted acreage would tend to prevent pro- duction from exceeding the poundage allotments next season. in Retail Tobacco rndustry Bonelli on Chesterfield Program lC4iAKD BONELLI, leading Americ^^n bari- tone of the Metropolitan Opera, is the fea- tured soloist for the Saturday night broad- casts of the Chesterfield series, with Andre Kostelanetz and his orchestra and vocal ensemble. The distinguished baritone is heard each Saturday from 9 to 9:30 P. M., EST, o%er the nation-wide WABC- Golumbia network. With the addition of Bonelli, who w^ recently heard in the series for one program when Lily Pons was unable to appear because of a cold, the series now presents three of the world's finest voices in varied programs ranging from the best loved of American ballads to popular concert selections and favorite arias of the operatic repertoire. In addition to accompany- ing the featured performers, Kostelanetz will continue to present his forty-piece orchestra and his eighteen- voice mixed ensemble in brilliant and colorful treat- ments of the best of popular melodies. With Lucrezia Bori, outstanding lyric soprano of the day, presented each Monday; Lily Pons, world favorite coloratura soprano, heard every Wednesday; and Bonelli on Saturdays, the series is one of radio's headlights of the current season. All three performers are leading singers of the Metropolitan Opera Com- pany- Bonelli might have won renown as a mechanical engineer if his passion for singing had not won out over an almost equal passion for things mechanical. Because of his family's moderate circumstances he worked his way through school in Port Byron, H. Y., '4 his birthplace, helping to pay his way by such odd jobs as newsboy, bundle boy, subscription clerk of the Syra- cuse Journal, farmer's helper, bank masseiiger, book- keeper, gardener in a cemetery, and mechanic's helper. He won a scholarship to Syracuse University, with automotive engineering as his goal. Bonelli 's family was musical, but he never thought of singing as a career until Professor Butler, now Dean of the Syracuse College of Fine Arts, advised him to take up music professionally. After he had studied for a time, his health broke down, and he went west to i-ecuperate. There he met the well-known American composer, musician and teacher, Arthur Alexander, who prophesied a brilliant musical career for him. After working as a zinc miner in Arizona, assistant manager of a California hotel, and insurance investi- gator in Seattle, he was summoned to Paris by Alex- ander, who became his patron and teacher. Shortly afterwards, Alexander died and Bonelli was stranded, but a New York business man and music lover came to his aid and made it possible for him to continue his studies. The young singer made his professional debut with the Monte Carlo Opera Company, the start of an un- broken series of triumphs. After many suci^sses throughout Europe he made his American debut with the Chicago Civic Opera Company in 1925, remaining there as leading baritone until 1931. Following an ex- tensive concert tour, he was engaged in the spring of 1932 for leading rolm mUk the Metropolitan Opera Company. By DAVID FRIDAY N THE tobacco industry, the possibility of im- ])rovenients leading to economics and lower costs has proven nmch greater in the field of manufacture than in the ])roduction of raw material bv the tobacco farmer, or in the distribution of the finished product by the retail tobacco trade. The use of power to supplement human effort through the application of machinery, and especially of automatic machinerv, in the field of manufacture has revolution- ized the 'industry. Obviously nothing of this sort is possible, either in tobacco farming or in tobacco retad- ing. The competitive process is most valuable and socially important in the manufacturing branch of the industry. The retailer does not convert a raw material into a finished i)rocess; there is i)ractically no possi- bility of using machinery driven by power to reduce the cost of his operations or speed up the volume. He renders a personal service between individual and in- dividual; and competition here has its greatest impor- tance in the etfect which it exerts upon the quality of that service. In this phase of industry competition does not have the same importance for the productive efficiency of industrial society as it does in the phases where mechanization prevails. This is not to say that competition is less keen in retail and wholesale distribution. In fact, it is very intense in those branches. But it too often takes the form of ])rice reduction, without a corresponding re- duction in costs of operation such as comes with the installation of new and imiirovcd machinery. In the attempt to reduce costs, such competitive effort is ^'er>^ apt to lead to the pressing down of wages and to an increase in the hours of work. But these are in themselves results which are so much against our whole social i>olicy that they are forbidden by the very law which we are discussing. For competition, with all its benefits, does tend under certain circumstances to breed conditions which are undesirable and which should, if l>08sible, be eliminated from the social and industrial process. Any comprehensive investigation of competitive practices will no doubt be arduous, and will consume a large amount of time. But it is imperative that the task be undertaken if we are to evaluate our competi- tive situation with any intelligence. The only alterna- tive is to run away from the problem and leave it to another generation. That was not the intention of the President in recommending this legislation; nor of Congress in enacting it into law. The retail tobacco trade is particularly suited to yield illuminating results to such a study. That indus- try is beset by one of the most outstanding types of unfair competitive practice, namely, that of cut-throat underselling. It is the industry in which the use of loM leaders has been most widely practiced, and in which its results have been most pernicious. It is, therefore, a most appropriate field for study and ex- periment. The risk imposed by this competitive prac- tice in the past has been such as to subject many units in the industrv to the constant threat of extinction. It * Vehrwury 1$, igjs has been of a nature characterized by Mr. Justice Brandois as "competition that kills". It is one of the dangers of intense coiii])otition that it makes for the disintegration of established institutions which are necessarv to the orderly functioning of the industrial structure. This practice of loss-leader ])rice-cutting is an almost i)erfect example of that danger. The tobacco industry as a whole is one in which the government is already limiting competition in the public interest at points other than that of retail dis- tribution. In the most comprehensive sense, the to- bacco industrv begins with the growing of the leaf on the farm; and the function which the industry per- forms is finally comi)leted when the finished product passes into the hands of the consumer from the retail distributor. Between these two operations lie the processing of the leaf, the manufacturing of the cigars, cigarettes, and other products and the wholesale and jobbing. At the beginning of these operations stands the tobacco grower. The government has seen fit to put the most severe limitations on competition for his benefit. The production of tobacco is not left to the whim of the farmer, nor is the tobacco grower relegated to the i)rocesses of the market for the price of his prod- uct. The government imposes a ])rocessing tax upon everv manufacturer of tobacco. It uses the proceeds of tliis tax to remunerate the grower for his action in delimit insr the acreage planted. The government has also encouraged and approved a marketing agreement by which the purchasers of to- bacco have bound themselves to pay a minimum price for the growers' product. When first inaugurated, the price thus provided was approximately 50 per cent, above that which i>revailed upon the competitive mar- ket. As a result of the limitation in the volume of acreage and production, and the influence of the mar- keting agreement, tobacco ]>rices are practically twice as high at this time as they were in June, 1933. The manufacturer receives his tobacco under con- ditions in which competition is se%^erely restricted. When the tobacco has been put into saleable condition bv the manufacturer, it is not allowed to pass freely into the hands of the distributor and consumer with- out more a an additional chart; of Ona Dollar ($l«) will be made for every ten (10) additional titlei neceaiarily reported. REGISTRATIONS OVERNIGHT:— 46.412. For all tobacco products. Schlegel Litho. Corp.. New York. N. Y., October 16, 1934. AIR-FLO:— 46.413. For all tobacco products. Air-Flo Cigar Corp., Tampa. Fla.. December 11, 1934. MERMONT:-46.414. For all tobacco products. Consolidated Litho. Corp.. Brooklyn. K. Y., December 24. 1934. BARNSBURY:-46.415. For pipes. ^JK^f ^"f Y"^'LuTrt 29 ^^93^^^ pouches. Rogers Imports, Inc.. New \ ork, N. Y.. January ^V, 1VJ3. TRANSFERS SOLID WORTH :-32.312 (Trade-Mark Record). f^,*^'f;^'pX- rettes and tobacco. Registered September 18, J^W. b> f^etre Schmidt & Bergmann. Philadelphia. Pa. Transferred by Petre Lith^ Co Philadelphia, Pa., successors to the or.g.na registrants, to Gwendoline De Souza. Philadelphia. Pa.. January 21. 1935. HILLCREST:— 36,897 (United Registration Bureau) and 23.030 (Tobacco World . For cigars, cigarettes, cheroots and tobacco. Registered September 12. 1911, and September 14, 1911, respective- W bTtre Ameri an Litho. Co.. New York. N. Y. Transferred by e^n^ohdated Litho. Corp.. BrookI>^. N, V. who ^-^ taken ov^r the cigar label department of the American L'tho. Co to Garcia Grande Cigars. Inc.. New York. N. Y., January 25, 1935. HIGH NOON CLUB OF CHICAGO:--W,416. For cigars Regis- tered Tanuary 19. 1935, by Home Industries Cigar Mfg. Co.. Inc.. Chkago. in (This certificate is issued upon Presentation made to us tha^t Ihe trade-mark or trade name herein ^P-jfif:^' J]»«"«»;3*,P; parently not heretofore registered in any of our A«^ >^»;,^,^f f.*"!; has been acquired by the registrant by a transfer from the High Noon Club of Chicago. Chicago. 111.. November 3. 1920.) CLUB CAR:-17,56l (Tobacco World). J''°'-. f Kt^^VfrTlf 19W roots chewinK and smoking tobacco. Registered March 31, IVW. LTkmerfcan Litho. Co.. New York, N. Y. J\^-^ll^': ^^^^^ Cigar Co.. Red Lion. Pa., and re-transferred to Scranton Tobacco Co., Scranton, Pa.. February 4. 1935. Send Two Dollars, with the coupon below to The Tobacco World, 236 Chestnut St., PhlU., Pa., and get your copy twice a month for a year. Name. Street N« P.O— MARCH 1, 1935 iiiiimiiiiiiiiii VOLUME 55 L.IBRAR RECBiVEO ^AR 7 - 1935 J eute& mnnm ^^ IIHIIIIIIIIIHIII COMMON SENSE The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phi la.. Pa. Hanover, Pa. Cincinnati, Ohio ^^^.••.^•^ >««*.««. mw York, Pa. AUTOKRAFT BOX CORPORATION Chicago, in. Lima Ohio Detroit Mich. A NalioixWidc Service Wheeling. W. Va. PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. After all jiothing satisfi a good cig es like ar 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. THE TOBACCO WORLD Vol. 55 MARCH 1. 1935 No. 5 HE Agricultural Adjustment Administration has announced that a preliminary tabulation of official returns from the referendum which was completed February 15th indicates that persons who own, rent, share-crop or %?'\^''^\^^'^ ^^^^^^^ omarily engaged in the production ot domestic hllei SinLr types of cigar-leaf tobacco -te^^^^^^^^^ ei-ht to one in favor ot application of the Kerr-hmitn Tobacco Act to those types of tobacco m 193o. The tabulation, prepared by the Tobacco Section, shows that 88.9 per cent, of the acreage tor which votes were cast was voted in favor of application ot the Act in 1935. Approximately 87.4 per cent, of the acreage eligible to be voted is included m the tabula- ^'"""'The Wisconsin-Minnesota district cast the heaviest vote for application of the Kerr-Smith Act. In this Ustrict persons having control of 95.4 per cent, oi he nd customarily engaged in production ot cMgai-lea bacco, upon which votes were cast, voted in lavor ot a ica ion of the Act in 1935. The tabulation includes sH per c<.nt. of tlie acreage eligible to be voted in this '^'''^'Vov the New Enijland district, the tal)ulation indi- cates that 94.7 per cent, of the acreage voted was m f' vor of application of the Act. Approximate y 89.2 ;;.V cent, of the acreage eligible to be voted m this district is covered in the tabulation. The tabulation shows that 85.0 per cen . of the acrea«"^•oted for the Miami Valley types ot tobacco d m7 per cent, of the acreage voted tor he Penn- "Ivania-Xew York district was in ^-^^^^ ^;}^ ticm of the Act. The tabulation includes 83./ per cent o he to il Miami Valley acreage, locatej m Ohio and Indiana; and 91.6 per cent, of the total Pennsylvania- Xew York acreage. . The Kerr-Smith Act levies a tax of 33 1/3 pei cent, of the gross first sale value of all tobacco harves ed duriVurl^ particular crop year but Prr^f-^^^^ Secretarv of Agriculture may prescribe a lo%\er rate of t IX (not less than 25 per cent, of the price for which la tobaLo is sold) if it is determined that such cl^'r rate will best effectuate tV- decked polic^^^ the Act The secretary prescribed a rate ot -o per cent, for the 1934-1935 crop year. Th© Act excluded cigar-leaf tobacco from applica- tion of the tax in 1934-1935. However, any type of tobacco may be brought under the provisions of he Act for 1935-1936 provided it is determined that the persons who own, rent, share-crop or control three- fourths of the land customarily engaged in the produc- tion of any type of tobacco favor the levy of the tax thereon and that the imposition of the tax thereon is necessary for the orderly marketing of such tobacco in interstate and foreign commerce and to effectuate the declared policy of this Act.'* ORE than 80 per cent, of the cigar tobacco growers participating in the referendum con- ducted by the Agricultural Adjustment Ad- ministration last month voted in favor of the application of the Kerr-Smith Tobacco Act to those types of tobacco in 1935, it was announced by the Ad- ministration February 25th. The Kerr-Smith Act lev- ies a tax of 33 1-3 per cent, of the gross first sale value of all tobacco harvested during a particular crop year, but provides that the Secretary of Agriculture may prescribe a lower rate of tax (but not less than 2o per cent of the price for which such tobacco is sold) it it is determined that a lower rate will best effectuate the declared policy of the Act. The rate for the 1934-35 crop vear was set at 25 per cent. the Act excluded cigar-leaf tobacco from appli- cation of the tax in 1934-35, but the Adininib^tration sought to bring it under the measure for 193o-3b by a referendum, as provided for in the law. To do this, it was necessary that the tax be approved by "persons who own, rent, share-crop or control three-fourths ot the land customarily engaged in the production ot that tvpe of tobacco. The vote, it was declared, showed that 88.9 per cent, of the acreage for which bal- lots were cast was voted in favor of application ot the Act. CS3 Ct3 CS3 EDUCTION of the processing tax rates upon the first domestic processing of Burley, flue- cured, fire-cured and dark air-cured tol)acco used in the manufacture of plug, twist and other chewimr tobacco and upon cigar-leaf tobacco used in the manufacture of scrap chewing and/or smoking tobacco has been announced by the Agricultural Ad- justment Administration. The reduced rates become effective Februaiy 1, 1935, and are set out in regulations signed •January 18th bv Secretary of Agriculture Henry A. Wallace and approved by the President. The findings set out in the regulations are based upon evidence submitted at public hearings and upon other available facts. From this data it was found that the processing taxes at such rates as had been found bv the Secretary to equal the respective differ- ences between the current average farm prn-e and the fair exchange value of the types named, when used tor the purposes set forth, would cause such a reduction in the consumption of these types of tobaccos as to result in the accumulation of surplus stocks and in the depression of the farm price and that the rat^s estab- lished in the new regulation would prevent such results. The trend in consumption of chewing tobacco has been downward for a number of years. During the last two years, when the consumption ot most otner tobacco products increased, the consumption of chew- ing tobacco has shown little change. The TOBACCO WORLD (esUbHshed 1881) is P^bHst^ed by Tobacco World ^ Geral?B^'Hlnk1^s?i«e^^^ Omc. 236 a^estnu, S p,^^^ ^^^^^^^ ^^ second-class mad matter. Relation of Price Control To Competition in Retail Tobacco Industry By DAVID FRIDAY (Continued From Previous Issue) Lastly comes the distributor. He has been beset by one of' the most vicious and destructive of all com- petitive practices; and it is here that the plane of com- petition needs to be raised. It is this necessity which led to the formulation of the tobacco retailers code, and to the merchandising provisions connected there- with. It is of interest to note that even under the code, with its price maintenance provisions, the retailers* share for a package of cigarettes is only 1.4 cents, as against the six cents which the government takes, and almost two cents which the tobacco costs the manu- facturer. The wholesaler and jobber receive sb:- tenths of a cent. This leaves, out of a total of 12.75 cents which the consumer pays on the average for those brands which make up the great mass of cigarette sales, a residuum of about 2.75 cents for the manufacturer. Out of this he must pay his labor cost, his advertising and other selling costs, and freight. The remainder, if any, is his profit. The keen competition, both as to quality and price, which prevails among the manufac- turing establishments, is the consumer's protection. In view of the nature of the industry as thus de- scribed, and of the government control which is already exercised over its various activities, there is no reason why the NRA should shrink from raising the plane of competition in the retail tobacco field, to the end that this injurious practice of destructive price-cutting shall be eliminated. The habit of using loss leaders in the form of to- bacco products which are sold under trade-marked names and which have a market made for them by national advertising offends both the ethical sense of the people in the comnmnity who believe in fair deal- ing ; and inflicts upon the retail tobacco industry one of the worst evils of competition. The ethical attitude of the intelligent portion of the public toward this prac- tice is well exemplified by the remark of Mr. Justice Holmes made in a dissenting opinion involving this general question. "I cannot believe," said the learned Justice, **that in the long run the public will profit by this course, permitting knaves to cut reasonable prices for mere ulterior purposes of their own." The average man believes the practice which has been so much resorted to in the use of tobacco products for loss leaders, selling them oven below their cost, to be a case of knavery. These are practically the only products employ^ as loss leaders on a large scale by industries alien to tobacco retailing. They have a value to the people who make this use of them because the manufacturers of the product have created a demand and a recognized standard of value for them through national adver- tising and other sales efforts. The loss leader prac- titioner appropriates this value for his own ends, under the guise of conferring a benefit upon the consumer. He never created any of the value which he thus ap- propriates. When he makes any justification for it at all, it is that which w^as so naively put forth at these hearings, when it was said by one speaker that the ban on loss leaders and the sale of merchandise below net invoice cost was not fundamentally different from expenditure of an equivalent amount for advertising. That defense is a masterpiece of sophistry ; for by a similar line of reasoning any course of human conduct might be con- doned to attain an end. The only test would be whether it was more or less expensive than some other mode of accomplishing the same purpose. A merchant might find it even cheaper to hire gangsters to make way with some of his competitors. The nature of the problem which confronts your commission in dealing with the subject before it at these hearings is not one which can be solved by asking whether the use of loss leaders is a cheaper or a dearer practice to the merchant who employs it. It must be answered rather on the basis of the conse- quences which follow to the whole of the industrial structure from its use. And more fundamentally than that, the practice, in order to be permitted at all, must not violate the standards of fairness and decency neces- sary to the self-respecting conduct of honorable men. Ruthlessness is not a quality to be taken as a matter of course in dealing with this question. It is of the very essence of the problem before you that the con- sequences of ruthlessness shall be ascertained and judgment passed upon its effects. It is just because this fact has been so often forgotten that the problem must be dealt with by public bodies such as your own. We have progressed to the level of social con- sciousness where a limitation of hours to a certain max- imum and of wages to a minimum are accepted by the public, including the business men who employ labor, with practically no word of complaint. This has been demonstrated by the absence of objections to those provisions of the code at these hearings. Yet the reg- ulation of wages is a clear case of price fixing; and the limitation of hours is an equally clear interference with management. But the ethical sense of the com- munity demands that industry and its management move on that level. It is our contention that the abolition and rigid restriction of loss leaders for standardized trade- marked and nationally advertised goods likewise com- ports with the ethical standards of the community today. If it can be proven that the abolition of the loss leader is administratively practicable, then the duty of the code is clear in this matter. The practice should be rooted out of the retail tobacco trade once and for all. If your Board believes the facts which were presented to it by those practical men who are actually engaged in this industry and have been pur- suing it for years, enduring the vicissitudes which have been foisted upon it by the loss leader practice; and if it further agrees that the enforcement of the mer- chandising provisions which have been in effect in the industry in recent months have been successful; then those provisions should be continued in force, as m means of raising the plane of competition which pre- vails in tobacco retailing. Doubtless further improvements will be made in the administration of these provisions of the code as Tk* Tobacco World WEASKED LEADERS IN WINTER SPORTS "Camels are made from finer, nK)re expensive tobaccos - Turkish and Domestic - than any other popular brand." (Signed) B. J. BEIHOLDS TOBACCO COMPANY Winston-Salem, North Carolina Q I», R. J. ReymiMi Tob. Oe. Mo/r^l^ms MIA. BAYUK BREVITIES E. MILLEK is assisting Joseph Whitcomb Co., Springfield, Mass., in an intensive promotional campaign in the interest of Phillies . . . The many friends of Harry Soyster, who has been ill were glad to learn that he is rapidly recovering ami rarin' to got back on his territorial work . . . P. i. Morris, territorial manager, and C. P. Ecjjlestone, ^s assistant, are aiding Walding, Kiimon & Marvin m the Toledo, Ohio, sector ... Out in Oakland, Calif., Terri- torial Manager Floyd Xagel is helping the local sales force of the distributor, Oakland Distributing Co., to get wonderful placements of Phillies and other Bayuk products . . . While C. M. Bristow is putting on a campaign for CrookAVallace Co., in the Vmcennes, Ind., territory. G. H. P. VISITORS MOXG the prominent visitors at G. H. P. head- quarters, Third and Brown Streets, were Lew Berman, of D. Kurman Co., Milwaukee, and Mrs. Berman. Before arriving in Philadelphia thev had made a tour of New York and New England, and they planned to extend their vacation through the East before returning to their home lown. Mr. Ber- man was enthusiastic over the unprovemeiit in the cigar business in his territory, particularly with El Producto and La Azora, and he felt that conditions would grow even better with a continuation of the cigar mm* Herman Abrams, Medalist representative, has re- cently returned from a visit in Baltimore and \\ ashmg- ton territorv, where he was successful in oi>ening sev- eral new acc'ounts on this quality cigar. He is now busy increasing the distribution and sale of Medalist cigars in the Allentown territory. John Wagner ^ Sons, Dock Street, wholesalers of high-grade tobacx-o products, report business increas- ing partieularlv with their high-grade smoking to- ba(ios, Monticelio and Wagner Ino. 3. These two popu- lar brands are gaining new friends daily and their pop- ularity is spreading to distant territory through the recommendations of friends of the brands. George Stocking, of Arango y Arango, was also m town recently and reports his Don Sebastian brand gaining in distribution and sale. Sam Adler, Villazon representative, was a recent visitor in town and reports his brand enjoying a splen- did demand. B. C. .Tessa, Eastern rei)resentative for Heines Blend, a high-grade smoking tobacco, was in town last week visiting local distributors and reports sales of his brand increasing. The Rovalist factory on North Second Street con- tinues to run at near capacity to keep abreast of the volume of orders which are being received daily at fac- tory headquarters. Benjamin C. J. Lumley has returned from a highly successful trip among jobbers and retailers in the Bal- timore and Washington territory and is now promoting the distribution and sale of Garcia y Vega cigars in the Philadelphia territory. Briggs Mixture, that high-grade smoking tobacco, product of the P. Lorillard Comi)any, has been increas- ing in demand in this territory to such an extent that the Lorillard Company has increased their sales force considerably here in order to meet this demand. John L. McGuerty writes from Havana, where he has been visiting factory headquarters of the Romeo y Julieta brand, that his factory has secured a supply of exeeptionallv fine tobaccos and their brand will nat- urallv benefi't by increased quality. Mr. McGuerty also advises that he'has been selected to represent the Eden brand in the United States. The Eden brand was for- merly manufactured in Cuba, but is now l>eing manu- factured in Florida. Tk* Tttme»WmM hiarch /, 193$ exporiencG aceiiniulates. But so far the enforcement has been successful to a remarkable deij^ree, and it bids fair to furnish a most valuable lesson in dealing with the ])roblem which the legislation providing for these codes was intended to solve. On the ])urely economic side, even if there were no ethical connotations to the ])roblem, the loss leaders should be eliminated from the tobaceo industry. In the long run it does no one anv good, not even the con- suming ])ublic. The most that can be said for it is that it may confer some benefit or give some emotional satisfaction to tlie merchant who has an over-developed appetite for ruthless and brutal rivalry. It was clearly recognized, in the general retail code, that this prac- tice is pernicious. In that code, as a])i)roved and signed bv President Koosevelt, an liot enuf. A salesman cannot he merely a salesman — he must bo a collector and a promotional man. In a v.ord, he must he a BUSINESS man And to be a Business Man, you've got to KNO\V your Business inside out and outside in. Yes. sir, that's the world of wisdom that Boss of mine initially knocked into my young and though t-I-knew-it-all type cf head. , , . . ,, ^ . , Having a job and doing m that job merely the things you are "supposed" to do will k^p you in that job til your toes curl up. You can't look the "other way when there's work to do and you can help do it. You'll profit in the long run if you deliberately LOOK for opportunities to pitch in and assist the Business. You've got to be bigger than your own particular job and then when a BIGGER job crops up, you're equipped and ready for it! Gee, but I was fortunate to fall in with such a Boss right at the start of my business career. In my youthful egotism and ignorance, many times, I thought he was an old fossil and I guess there are plenty of the younger element today who are rebelling against the acceptance of business ad- vice from their elders. Cultivate in- itiative and take a chance on un- trodden paths but keep your ears open for the teachings of old man Experi- ence, (to be continued) In the next insullment th« "Old Timer" tells how he chased an elusiva twenty-five cents for days — and learn«l to stand on his own feet. If you've ever been in the selling game, you'll get many a chuckle, and maybe a valuable hint or two, from this true story of a real salesman. IT'S A GREAT DAY FOR THE IRISH It doesn't take a seventh son of a seventh son to foretell a great blos- soming of green neckties and shani- rocks on the seventeenth of March this year. For on St. Patrick's Day every- body's Irish and every Irishman is twice as Irish as he is on any other day of the year. This time the seventeenth falls on a Sunday. And it's going to be a great week-end for the cigar dealer who makes a special St. Patrick's Day display in his window. A few shamrocks obtained from a florist, some photographs of Irish scenes bor- rowed from a travel agency, perhaps some genuine Irish shawls or black thorn sticks borrowed from Irish friends — and there's your display. And there's nothing like a timely, seasonal window display to halt the passer-by and lead him gently but firmly into your shop. IT'S NO suPERSTrnorT ABOUT 'LONG ASH" Smokers, who insist that a cigar which holds its ash, is to be preferred, have more reason on their side than many of them perhaps know. A cigar that makes a lonp, strong ash doesn't have that unfortunate tendency to decorate the smoker's vest and the wife's rugs with a miniature snow storm of ashes. But that's a minor matter beside its psychological effects. Many men believe that while a cigar retains its first ash it tastes better. And as Shakespeare remarked, "Nothing is but thinking makes it so." or words to that effect. Then, too, a good cigar deserves to be "sipped" slowly like good wine, not hurried through like a dose of medi- cine. The "nursing along" of an ash encourages that calm deliberate smok- ing which brings out the best in your cigar. BAYL'K BRANDS BUILD BUSINESS Baviik 'Phillies' (BXyUK PHILAUIXPHIA PERFtCTO} Havana Ribbon Mapacuba Charles Thomson Prince Hamlet Cigars and Cigarettes Down in January HE followinii: coni]iarative data of tax-paid products, indicated by the monthly sales of stamps, are issued by the Bureau. (Figures for January, 1935, are subject to revision until published in the annual report.) — January — Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. 1935 1934 299,474,020 2,404,563 23,722,568 1,701,302 275,614 300,249,320 2,447,133 32,905,568 1,561,8^3 127,917 Total 327,578,067 337,291,761 Cigars ( small) No. 18,065,800 20,343,507 Cigarettes (large) .... No. 206,900 8,000,050 Cigarettes (small).. . .No. 11,336,532,357 11,483,341,893 Snuff, manufactured.. lbs. 3,514,239 3,234,989 Tobacco, manuf act 'd. . lbs. 26,606,049 27,611,491 Tax-paid products from Puerto Rico (not included in above statement) were as follows: — January — Products • 1935 1934 Cigars (large) : Class A No. 3,549,875 2,517,830 Class B No. 105,100 2,500 Class C No. 38,050 49,500 Total 3,693,025 2,569,830 Cigars (small) No. Cigarettes ( small ) . . . . No. 200,IK)0 110,000 200,000 300,000 Tax-paid products from the Philippines (not in- cluded in above statement) were as follows: — January — Products 1935 1934 Cigars (large) : Class A No. 18,429,160 19,111,955 Class B No. 68,183 24,420 Class C No. 11,834 20,186 Class D No. 127 500 Class E No. 150 20 Total Cigarettes (large) No. Cigarettes ( small ) No. 18,509,454 19,157,081 • •«*•• 100 29,000 121,370 Withdrawals for Previous Januaries 1920. 1921. 1922 . 1923. 1924. 1925. 1926. 663,634,243 462,798,039 443,260,802 559,183,386 504,023,809 474,8(n3,054 433,672,942 1927 . 1928. 1929. 1930. 1931. 1932. 1933. 466,078,254 413,531,675 427,715,807 418,9(K),080 362,939,318 342,923,509 296,640,206 Internal Revenue Collections for January Source of Revenue 1935 1934 Cicrars $797,386.49 $844,527.26 Cigarettes 34,011,210.47 34,508,175.07 Snuff 632,562.94 582,297.99 Tobacco, chewing and smoking 4,789,195.68 4,970,241.49 Cigarette papers and tubes 98,462.30 68,969.77 Miscellaneous, relating to tobacco 125.55 373.20 Collections From Agpricultural Adjustment Taxes and Tobacco Sale Tax Total from Month of July 1, 1934 Commodity Jan., 1935 {fiscal year 1935) Tobacco (tax effective October 1, 1933) : Processing tax $2,406,837.76 $18,446,459.86 Import compensat- ing taxes 15,066.40 143,499.89 Floor taxes 71,535.94 106,476.39 Total, tobacco.. $2,493,440.10 $18,696,436.14 Tobacco sale tax $1,017,664.10 $2,082,677.15 to GROWER ADJUSTBIENTS CTING Secretary of Agriculture R. G. Tug- well has signed an administrative ruling which permits a contracting producer under a Bur- ley, fire-cured or dark air-cured tobacco pro- duction adjustment contract whose base acreage is 1.2 acres or less to plant in 1935 an acreage of tobacco equal to (a) the base tobacx;o acreage, or (b) eight- tenths (0.8) of an acre, whichever is smaller; and to market from his 1935 crop a number of pounds of tobacco equal to (a) his base production, or (b) 650 pounds, whichever is smaller; provided that the pro- ducer shall agree that no rental, adjustment, or de- ficiency pavment shall be made under the contract for 1935. The limitation of 0.8 of an acre and 650 pounds was added in order to assure that producers who can qualify under this ruling will not receive larger allot- ment s'than the producers who cannot qualify. An examination of available figures indicates that approximately 24,000 of the contracts in force in 1934 will be eligible to come under this ruling for 1935. Not all of the eligible producers are expected to elect this option. The Tobacco Section estimates that the increase in production by small growers who could elect this option will not exceed 2 per cent, of the total base production for all growers of Burley tobacco and less than 1 per cent, of the base production for growers of the dark types of tobacco. Yahn & McDonnell report that demand for the new five-cent As You Like It brand has increased to such an extent that they have not been able to catch up with the demand since the holiday season depleted their stock, in spite of the fact that they have twice increased their weekly standing order and received substantial shipments by express as well. News From Congress _ 'AND FE D E.R A L Departments OSSIBILITIES of control by the Secretary of Agriculture of every industrial plant in the country, including those manufacturing to- bacco products, every wholesale distributor and every retailer, with tlie exception of those dealing in metals exclusively, are seen in bills now pending in Congress to amend the Agricultural Adjustment Act. Apparently innocuous provisions of these bills, it is charged by opponents, if broadly interpreted, would make it possible for the Secretary to require licenses and otherwise control the production of all tobacco products, clothing, paint, paper, automobiles, electrical equipment — everything in the manufacture of which the products of agriculture are used to any extent whatever. Wide application of the powers sought in the legis- lation would subject more than 110,000 manufacturers, some 62,500 wholesale establishments and over 911,000 retailers to strict control. A provision that licenses could be imposed upon any entire industry upon the approval of any sort of a marketing agreement by companies representing 50 per cent, of the volume of the industry, it is charged, would give a few large concerns the power of life or death over their competitors. It would be possible for the Government not only to fix the prices which manufacturers should pay for their raw materials, but also the volume of production and the prices at which finished products should be sold by manufacturers, wholesalers and retailers. Cj3 C$3 Cj3 ONTINUATION for several years of the pres- ent three-cent postage rate on first-class mail ^or other than local delivery is said to be planned by Post Office Department officials. 'While the only public pronouncements on the matter have been statements by Postmaster General Farley that the financial condition of the postal service does not yet permit a return to the old two-cent rate, it is generally expected that any marked increase in the vol- ume of mail will necessitate a heavy increase in person- nel and, accordingly, in expenses and that the $75,000,- 000 a year which is now secured from the additional t charge will be used to meet this enlarged cost The Administration is determined to make the pos- tal service self-supporting as a concrete demonstration of its efficiency. A $12,000,000 surplus was claimed for the fiscal year ended June 30th last, but this was se- cured only by eliminating the cost of carrying Govern- mental and other free mail. March t, tgsS From our I^ashington Bureau $22Albe£ Builoing EW tax legislation will be introduced in Con- gress after the major measures now pending have been disposed of, and will include not only the continuation of those levies which are due to expire but also some new taxes, it is indicated. In view of the need for revenue, it is not considered likely in informed circles that any success will attend the movement for a reduction in tobacco taxes. Although President Roosevelt in his budget mes- sage in January told Congress he had no tax legislation to advance ''at this time", he warned that it might be necessary to seek additional sources of revenue be- fore the end of the session, particularly if Congress failed to adhere closely to the budget as originally drafted. Indications are that legislation to be enacted will carry Government expenses for the coming fiscal year considerably higher than was anticipated, and that ad- ditional revenue will be necessary to avoid a heavy increase in the deficit. In his message, the President asked for the con- tinuation of the various miscellaneous taxes which au- tomatically will expire in June and July. Cj) Cj3 Ct3 T least two independent investigations of the National Recovery Administration will be made before Congress enacts legislation ex- tending the life of the Recovery Act for two years requested February 20th by President Roosevelt. Acting on a resolution introduced in the Senate by Senators Nye (Rep.) of North Dakota and McCarran (t)em.) of Nevada, citing twenty-one charges of "op- pression ' ' of small businesses and misuse of codes, the Senate Finance Committee will inquire into conditions in the NRA before writing the bill, of which it will be in charge. ^ ^ In the House of Representatives, a similar inquiry is expected before any legislation is acted upon, and may be conducted either by the labor committee, of which Representative Connery of Massachusetts is chairman and which now has before it a bill, introduced by him, providing for the equal representation of labor on all code authorities, or by the Ways and Means Com- mittee. In addition, the Senate Judiciary Committee is planning an investigation of its own, and may do so de- spite the Finance Committee's inquiry if Senator King (Dem.) of Utah, leader of the movement, is successful in securing approval of his proposal. This would be, tftaa^ the standpoint of the Administration, the most n A.inerica's outstanding 5* cigar value For years, Muriel has been a "best seller" ever>-where at ten cents. Now, in its new Senator aiM, and at its new nickel price, Muriel standi out as the five-cent cigar combining Domestic and Havana charm at a price any smoker can afford. Don't miss Muriel as the sure-fire five-cent leader on your cigar counter. P. LORILLARD rOMP.l^TY, ixr. Estahlished 1 760 119 WEST 44»lh STREET • 5iEW lORK^llTY * TOBACCO TRADE ORGANIZATIONS TOBACCO MEROIANTS ASSUCI.M ION - ' S. OF UNITED STATES /ESSE A. BLOCH. WTieeling. \V. Va President ]ULIUS LICHTENSTEIN. New York. N. V Vice-President WILLIAM BEST. New York. N. Y, Chairman Executive Committee MAJ. GEORGE \V. HILL, New York. N. Y Vice President GEORGE H. HUMMELL, New York. N. Y Vice President H. H. SHELTON. Washington. U. C Vice President WILLIAM T. REED. Richmond. Va Vice President HARVEY L. HIRST. Philadelphia. Pa Vice President ASA LEW LEIN. New York. X. Y Treasurei lUAKLtS ULSHKIND. New Y.ik. N. Y Counsel and Maiiagmn Direttoi Headquarter». '-ll Madi«BB Ave Nrw Ywk C ily RETAIL TOBACCO DEALERS Ol AMERkA IXu WILLIAM A. HOLLINGSWORTH. 2S3 Broad%vay New York. N. Y President CLIFFORD N. DAWSON. Butlalo. N. V Executive Vice President JAMES C. THOMPSON, Chicago. Ill Treasurer ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS iOHN H. DUYS. Kew York City President IILTON RANCK, Lancaster. Pa First Vice-President D. EMIL KLEIN, New York City Second Vice President LEE SAMUELS, New York City Secretary -Treasurer NATIONAL BOARD OF TOBACCO SALESMEN^ ASSOCIATIONS ABE BROWN. 180 Grumman Ave., Newark, N. J .....President ALBERT FREEMAN. New York, N. Y First Vice-President IRVEN M. MOSS, Trenton, N. J Second Vice-President A. STERNBERG, Newark, N. J SecreUry RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA MORRIS LEVITONE President SAMUEL MAGID, ^»1 N. Mervine St., Philadelphia, Pa Secretary THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS, INC. E. ASBURY DAVIS. Baltimore, Md President JOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y. Secretary GEO. B, SCRAMBLING, Cleveland, Ohio Treasurer UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION JOHN F. BROWN President MERMAN H. YAFFE, XI Fox Building, Philadelphia, Pa Secretary serious probe of all, since King would have on his sub- committee Senator Borah (Rep.) of Idaho, long-time enemy of NRA, and plans to have as counsel Lowell Mason, who served in a similar capacity with the Dar- row Board during its investigations which resulted in scorching attacks upon the Recovery Administration and the code authorities of those industries which it studied. SPECIAL BASE CONTRACT OFFERED GROWERS OF FOUR TOBACCO TYPES mil Agricultural Adjustment Administration has announced tliat it is offering a special base contract for llKl.') to j)roducers of flue-cured, P>uiley, lire-cured and dark air-cured tobacco who, because of circumstances l)eyond their control, Niich as weather, disease and tinanciai distress, did not grow enough toliacco in 11)31, 1032 or 19:^3 to enable tliem to ()1)tain e(iiiitable production allotments under tiie regnlar tobacco ])rodiicti()n adjustment contracts. Tlie new contract is specifically designed to make the tobacco program more equitable to all classes of growers. Producers who sign the contract will be eligible to receive tax-jiayment warrants to cover the ])roduction allotments for their contracts. These war- rants niav l)e used to i)av the tax levied bv the Kerr- Smith Tobacco Act. In addition to tax-])ayment war- rants to cover sales up to their ])r()duction allotments, these ]»rodiicers will receive a benefit payment at the rate of sfd an acre for each acre of ditTerenco between the tobacco acreage allotment and their l)ase tobacco acreage. The New Me r ham - Webster A JVew Creation The latest and greatest of the famous Merriam-Websters — backed by a century of L adership and representing the highest modern scholarship. Just com' pleted at a cost of $1,300,000. WEBSTER'S NEW INTERNATIONAL DICTIONARY Second Edition '«»,000 Eatrles-122,000 Hot Fonad in Aay Otker Dlctioniry 'Thousands of Hew Words f 12,003 Terns Illustrated 'Maculflceat Plates la Color aad Half Tone 'Thousands of Encyclopedic Arti- cles '3S,000 Geographical EntHes Hi.OOO Biograph- ical Eatrles '200 Valuable Tables ISjraeajrms aad Aatoaysu %i3S0 Pages See The New Mertinni-W» h.stcr At Your Bookatore Or Write For Pamphlet G. & C MERRIAM CO. Sprinsficld, Mam. DON i AAlbS AND RADIO'^ ^.ENSATIONAL lAUGH TEA^- W!TH JOSEF BONiMES ORCHFSTRA AND GUEST STAR they're building for PICK and PAT and Baltimore WFBR Bostoa WEEI Buffalo WBEH Chicago S?A^ ClBclaaatl WSAI Clevelaad WTAM Deader KOA DesMolaes WOC-WHO Detroit WWJ Duluth WEBC Hartford WTIC BONIME'S ORCHESTRA ar* pr«tttnt«d wmI Friday Saturday Friday Friday Friday Friday Moaday Friday Friday Tuesday Friday Kaasas City WDAF Los Aageles KNX MadisoB WIBA Milwaukee WTMJ New York WEAF Oaiaha WOW Philadelphia KYW Pittsburgh WCAE PortUad, Me. WCSH Portlaad, Ore. KEX Saturday Tuesday Wedaesday Friday Friday Friday Friday Friday Friday Wedaesday SEE YOUR UKAL EVENIMC HtOGRAM USTINGS ov«r th« following ttatient: ProTideace WJAR Friday Richmond WRVA Tuesday St. Louis KSD Friday St. Paul KSTP Monday Salt Lake City KDYL Moaday Saa Fraacisco KCO Friday ScheaecUdy WGY Friday Seattle KJR Tuesday Spokane KHQ Moaday Washiagtoa WRC Friday Worcester WTAO Friday DILL'S BEST AND Cigars Up 73 Millions in 7 Months Cigars : Class A — United States. Puerto Rico . . . Philippine Is. . Total Class B— United States Puerto Rico . . Philippine Is. Total.. First 7 Mos. Fiscal Yr. 1935 — Decrease -j- Increase Quantity 2,398,730,035 ■{- 112,744,565 36,194,505 H- 1,660,725 115,666,470 — 24,622,040 2,550,591,010 -h 89,783,250 39,261,996 -f 1,319,250 — 353,990 + 19,238,961 828,950 247,906 a a a • 40,935,236 + 18,657,917 Class C— United States. Puerto Rico . . . Philippine Is. . 338,169,762 472,000 173,988 + 20,856,850 177,530 3,226 Total Class D— United States Puerto Rico Philippine Is Total Class E— United States Puerto Rico Philippine Is Total Total All Classes- United States Puerto Rico Philippine Is 338,815,750 — 21,031,154 25,087,671 — 1,500 + 2,627 + 25,091,798 2,881,975 1,745 2,965,514 500 677 2,964,337 742,494 806 2,883,720 — 743,300 2,804,131,439 + 107,418,668 37,987,255 + 654,745 116,198,820 — 24,371,037 Grand Total.. 2,958,317,514 + 83,702,376 Little Cigars : United States Puerto Rico. . Philip])ine Is. 117,432,253 — 1,440,000 — 16,800 + Total, 118,889,053 11,557,161 340,000 16,800 11,880,361 Cisrarettes: riiited States Puoito Rico. . Philippine Is. 74,451,354,246 +8,913,784,341 2,561,570 — 274,430 729,690 — 38,400 Total Large Cigarettes : United States Puerto Rico Philippine Is Total Snuff (lbs.)— All U . o Tobacco Mfd. (lbs.)— United States . . . Philippine Is. ... 74,454,645,506 +8,913,471,511 1,434,501 — 236,000 100 — 1,670,601 8,157,399 379,000 6,100 8,542,499 20,969,484 — 268,144 177,007,437 13 1,098,023 Total 177,007,450 — 1,098,081 GEORGE T. BIURPHY Febrwury i, tQSS EORGE T. MURPHY, last of the original founders of the business of Peter F. Murphy- Co., wholesale distributors of tobacco products in the Philadelphia territory, died on Feb- ruary 20th at his home, 7306 York Road. He had been retired from the business for about fifteen years. Fu- neral services were held in the Church of the Holy Angels, Oak Lane, and interment was in New Cathe- dral Cemetery. He had been in the tobacco business since boyhood. He is survived by his widow, Fannie. The firm of Peter F. Murphy Co. was organized in March, 1875, by three brothers and a sister— Peter F., John, George and Miss Elizabeth Murphy. The company is located at Sixth and Cherry Streets, Phila- delphia. '$ EsnblUhed 1886 "BEST OF THE BEST »9 "■"'"-"■' '•' A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Kep West. Flortda OUR HIGH-GRADE NON-EVAPORATING Make tobacco meUow and smooth In charactat and impart a most palatable flavor FUVORS FOR SHOKIHC ud CHEWING TOBACCO Writ* for List of Flavors for Special Brands BBT13N. "MOMlmMVBOX FLAVOIS. PASTE SWEETENBKS FRIES A BRO.. 92 Reade Street, New York Classified Column The rate foi thit column it three cenU (3c.) • word, with a minimum charge of seventy-five cents (75c ) payable strictly in advance. f»XfiiC^t»ai[» ($2.00) will be made and so an additional charge of One Dollar ($1.00) WUI B« made for every ten (10) additional titles necessarily reported. REGISTRATIONS GREEN SWIZZLE: — 46,418. For all tobacco products. Crimson Coach. Inc., Toledo. Ohio, February 13. 1935. AMELIA ROSE: — 46,419. For cigars. Garcia Grande Cigars, Inc., Xcw York, X. Y., December 7, 1934. TRANSFERRED MAGDA:— 20,913 (Tobacco World). For cigars, cigarettes and to- bacct>. Registered October 6. 1910, by Moehle Litho. Co., Brook- lyn. X. Y. Through mesne transfers acquired by Consolidated Litiio. Corp., Brooklyn, X. Y., and re-transferred to I. Lewis Cigar Mfg. Co., Xevvark, X. J., January 17, 1935. BAYUK CIGAR EARNINGS AYUK CIGARS, INC., reported for the year oiulcd December 31, 1934, net profit of $941,- 298, equal after payment of preferreddividends to $8.04 a share on 94,423 shares of common stock outstanding. This compares with net profit for the i)revious year of $664,711, equal after preferred dividends to $o.ll a share on 90,851 shares of common stock then outstanding. In his report to stockholders, Harry S. Eothschild, president, declared : "We are carrying a substantial inventory of to- bacco which has been purchased at favorable pricies witli a view of carrying us over a period of years, in- suring a uniformity of quality in our cigars." U. S. TOBACCO PROFITS The report of the U. S. Tobacco Company for the vear 1934 shows a net profit of $3,411,116, after de- preciation, Federal taxes, etc., equal to $7.09 a share on the no-par common stock. This compares with $3,396,- 482, or $7.03 a share in 1933. Send Two Dollars, with the coupon below to The Tobacco World, 236 Chestnut St., Phila., Pa., and get your copy twice a month for a year. Name. Street No.- P. O JState. MARCH 15, 1935 LIBRARnr RBCIITZB The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phila., Pa, Hanover, Pa. Cincinnati, Ohio AUTOKRAFT BOX CORPORATION LIMA OHIO k- - VI A Nationwide York, Pa, Chicago, 111. Detroit, Mich. Wheeling, W. Va. 'A nnnnnn PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. KBMMi After all ^""^ nothing satisfies lil a good cigar WOODEN 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. THE TOBACCO WORLD Vol 55 MARCH 15. 1935 No. 6 ONFESSIONS of an Old Timer", the new serial story appear ini;- regularly in the Bayuk Bulletin in these pages, gives promise of be- ing more interesting even than the ** Memoirs of Alex Sinart", which ran last year. Certainly if the jirst instalment, which was published in the March 1st issue of The Tobacco World, is any criterion, this J) resent series should be highly entertaining, informa- tive, educational and inspirational, and therefore of the most intense interest to everyone interested in the merchandizing of tobacco products. Cj3 Cj3 ft] II K OLD TIMER tells of how, *' fresh" from scliool, he went to work for a cigar, tobacco and cigarette jobber as a Bookkeeper (tlie capital B is his) and how he resented it when liis Boss told him, in order to learn something about the Business, he should forget the bookkeeping job and go out back and get up orders. In case you missed that first instalment, you will do well to refer to your hist issue and read it, particularly the following words uf advice from the Boss to the kid Bookkeeper: Ct) Cj3 Cj3 OUR worth to me is what you contribute to my hushiess as a tvholr, and you can contribute to a business only to the extent that you have knowledge of that business. Remember that, mv Bov, all through your life You are in my busi- ness not as a bookkeeper but as a business man and you can't be a business man unless you find out about the Imsiness. And here's something else for you to remember. You can profit more by finding the answers YoriisELP than by asking someone else to furnish them for you. Our business is cigars, tobacco and ciga- rettes. You can never know too much about cigars, tobacco and cigarettes, and you can commence no\v find- inu out about them bv getting out there and helping to uet up the orders. Maybe, some day, you 11 want to sell cigars, or tobacco or cigarettes. You canU sell that which vou don't know anything about. Maybe, some day, you *I1 want to own a jobbing house like mine . . . just running the books will not run a Business. Get iroing on those orders." CS3 CS3 ttj ND the Old Timer tells how getting up those orders was a stepping stone to his getting into the selling game later. **It was that Boss," he writes, **who knocked the fundamental truth into mv head that working for your House in just the specific job in which you are employed is not enough. A salesman cannot be merely a salesman- he must be a collector and a promotional naan. In a word, he must be a Business man. And to be a Busi- ness Man, you've got to Know your Business inside out and outside in. Yes, sir, that's the world of wisdom that Boss of mine initially knocked into my young and tliouuht-I-knew-it-all type of head." Ct] CS3 Ct3 OU get the idea of the Old Timer and his Con- fessions from those excerpts from the first in- stalment. And you get the idea why we pre- dict that the "Confessions of an Old Timer" will strike even a more responsive chord than the "Memoirs of Alex Smart", which created such a de- mand from practieallv everv line of sales effort that it Ix'came necessary to issue the series in book form, and this r'dition was purchased by salesmen and sales managers tlironghout the world. Ct3 [J) CJ3 X case any retailers may be confused regard- inu the purport of the amendments to the Code which will be discussed in AVashington, tlic following explanation is given: The amendments contemplate the addition of five and one- quarter per cent, to the manufacturer's list price when that list price is less than $5 per thousand, and the addition of six and one-half per cent, when tlie manu- facturer's list price is more than $5 per thousand. In tin* case of multiple sales, the retailer may be allowed to grant a discount of five per cent, on all sales of not less tliaii 20 cents and not more than one dollar, and •a discount of eight per cent, on all sales of more than one (lolhir. The addition of the foregoing percentages to the manufacturer's list price wmU result in a price for popular brand cigarette^ of 1*5 cents a package, two packages for 2.') cents, and $1.2() a carton. On ten-cent lirands it will result in a minimum price of lU cents a package, two packages for 19 cents, and 9.5 cents a car- ton. Thi'se prices are identical with the minimum prices which have been established under the emer- gency order. In fixing this allowance, consideration will also be given to the necessity of adding State ciga- rette stamp taxes to the minimum prices provided by the amen ,-.„. En.er.d as second-Cass n.al. n,a..«. DtcemlKr Z2. 1909, at th. Post Offict, Philadelphia, Pa., under the Act of March 3, 1879, Protest Pennsylvania Tax EXXSYLVAXIA loaf tobacco ,ur(»wors, cigar iiiaimt'acUirers, distrilmtors and retailors met in Pliiladeli)liia to jirotosl against the pro- ])ost'd taxation on tobacco i)r(Hliicts and to organizi' to make tboir i^rotcst otTcctivo. Tbo moot- ing, ludd on Marcb 12, was presided over by Harry S.' Rotbschild, president of Baynk Cigars, Inc., as chairman. He pointed ont tlial tiiis emergency called for tile concerted action of all branches of the tobacco industry, and he snlmiitted a program which entailed the forination of a general connnittee to be known as the l\Minsylvania Tobacco Industry Connnittee, with representation from each branch and sub-connnittoes of growers, workers, legislative and ])ress, and retail- ers. Mr. 'Rothschild added that the organization formed at these tax-i)rotest meetings, of which this was the second, should form the nucleus of a perma- nent oiganizatioii, to establish a mutual bond of help- fulness between the various groups within the indus- try, so that all interested might w^ork to guard and promote the best interests of a business which is so important in the state and gives employment to many people. Bill 8()2, as the proposed legislative act is known, was the target of all present. It was attacked not only becausi' of its etTect on the merchandising and manu- facturing of tobacco products and the inevitable boot- legging which, it was predicted, would follow its en- actment into law, but also on the broad humanitarian principle that it w^ould work havoc wdth one of the important lalmr-employing industries in the state. It was declared that this taxation would only add extra heavy burdens on an already heavily-burdened industry, would operate to lessen production, thereby decreasing labor, and would materially cut down sales in the state, thus affecting labor again. Camel Caravan Renewed The Camel Caravan, one of the most popular shows in radio, has been renewed on the Columbia Broaports; and (Uen Gray's Casa Loma Orchestra. As iieretofore, these po|)ular programs will be broadcast on Tuesdavs, from 1(1 to Kh.'U) I*. M., K. S. T., and on Thursdays from !» to Ih.'Jo P. M.. K. S. T. (with a re-broadcast for Wt-stern stati«»ns at 1 1 N>n P. M., E. S. T.). Directed by the witty and entertaining O'Keefe, versatile star of radio, stage ami sereen, the Caravan will continue its melodious and amusing excursions into the realms of jiopular music anilly feud; a cycle of old Egyptian and Koman events broadcast in the modern manner; ''Time Marches Backwards," featuring glimpses of incredible history as interpreted by J'rofessor O'Keefe; and other high- lights based upon **The Life and Times of Ted Husing." New Stand at the Shore The new cigar stand in the Hotel Traymore, Atlantic City, X. J., presided over by Roy Scott, and featuring only high-grade cigars and tobacco products fur- nished by John Wagner & Sons, Philadelphia distributors. Code Amendments Proposed Hearings for Retailers and Wholesalers March 25 and 26 The Tobacco World UBLTC hearings on proposed amendments to tiie codes for the retail and wholesale tobacco trade (h'signed to rei)lace the ])resent emer- gency i)rice determinations will be held March 2') and iHi, the National Kecovery Administration an- nounced on March H. At ])resent each trade is oper- ating undei- an emergency determination of mininunn mark-ups which must be achled in all sales of ciga- rettes, but those orders expire March 'M). When the emergency orders \ver(» last extended, from January 'Jd to March .'JO, the XHA required the retail tobacco trade coch' authority to submit a substitute )>lan to ])rovide '•cr)nt inning ])rotection" to small ent<'rprises "against the effects of unfair i)rice competition and destructive price cutting," and re«piired the code au- thority for the wholesale tobacco trade to submit "all evidence reasonal)ly available concerning the effect of said order upon sub-jobbei*s of cigarettes." The anu'ndnients upon which hearings will be held are the proposals of the respective code authorities in compliance with the Board's order, any independent grou])s in each trade as alternatives to the amendments proposed by the eodi' authorities. The code authority for the retail tobacco trade proposed to incorporate the jirovisions of the emer- gency order into the code requiring a minimum mark- uj) of 5^ t p(M' cent, over the mannfacturei's list ])rice in sales of cigarettes sold for less tiian ^'} a thousand and HV-j pi'r cent, in other cigarettes. The code author- ity also proposes a mininunn mark-uj) of S per cent, in smoking tobacco, chewing tol)acco and simtT above the manufacturer's list price. The alti'inative proposal sulnnitted by a group of ind"pendent members of the traah's of cigarettes below cost, anale below manufacturer's list price less 0.1 jkm- cent, would be deemed a sale below cost. The group also proposed to empower the code authority to recom- mend and the National Industry Recovery Board to flk an allowance for costs of retail distribution, and after such a determination all mendiers of the trade would be bound by it. • The notice of hearing states that consideration will be given at the hearing to the amount of aUow- ance which may be established as provided in the pro- po.sud amendment, and that the additions contemplated are those contained in the present emergency order. In the wholesale tobacco trade, the code author- ity |»ropoMN that the cost of cigarettes, chewing to- bacco, smoking tobacco ami snutT shall be the manu- facturers' list pric(» less trade discount that in sales by jobbers or sub-jobbers to retailers the minimum price shall be cost plus 2 p«'r cent., and tiu»t in sales bv jobbers to sub-jobbers the mininunn price shall be cost. The alternate proposal f>f the independent group in the wholesale tol»acco trade is much the same as is proposed in the retail tobacco trade cjule; prohibition of sales of cigarettes beh>w cost, deemed to be the maimfHcturers* list price less all trade and cash dis- c(nuits, and power to establish an allowance for the costs of wholesale distribution. March ts, igS5 ( V)nsi(leration will be given at the hearing to the following basis, which nuiy or may not be required, in case this j)roj)osal is adojited: Tn sales by jobbers to retailers :].l per cent, must be added to the manufacturers' list price less all dis- counts. Tn smIcs by jobbers to sub-jol)bers 1 per cent, must be added. In sales by sub-jobbers to retailers 2.1 per cent, must be it }mrchase of cigars not l)earing official cok and that on the wholesale trade code Tues- day, March 2(1 Both will be held in the Mayflower Hotel, Washington, under the direction of Deputy Ad- ministiator Irwin S. Moise. MANUFACTURING AMENDMENTS IIH Cigar Manufacturing Industry, through its Code Authority, has submitted an application for amendments to the Code of Fair Com- petition, luiving to do with time worked on Sundays and holidays, and also regarding slow work- ers. Criticisms, objections oi- suggestions concerning them must be submitted ])rior to Tuesday, March 26. Following are the proposed amendments: AiJTicf.E III, Section 4. — All time worked on Sun- da v. New Year's Day, Washir»gton's Birthday, Me- nnirial Dav, (Confederates' Day), Inde]>endence Day, Labor Day, (Jeneral Election Day, Thanksgiving Day, Christnuis Day, and all days which nuiy be declared to be national holidays by proclamation of the Pres- ident of the Fnited States, except by watchmen, engi- neers, firemen, and wra])per casers, shall be compen- sated at the rate of time and one-third. AuTicLK IV, Section 9.— -Hand cigar nuikers who are classed as .slow workers, up to twenty-five per cent. (25^; ) of the total nmnber of such workers and ma- chine cigar operators, up to ten per cent. (10%) of the total nundier of such workers, need not receive the mininunn hourly rate herein specified, provided they shall be pairovisions written in com])liance with the anti-monoi)oly i)rovisions of the act, and streniithen the machinery for enforcement l)y ])rovid- inu- for the prevention of violations l)y e(iuity pro- cedure, making violations i)unishable by fine only and makinu available the remedies of the Federal Trade Connnission Act. He suggested that all codes be ex- tended for a limited period within which they would be revised to conform to the requirements of the new law. On the other hand, a number of members of the Senate favor abandonment of the NRA and transfer of the wage and hour jH-ovisions of the act to the De- jiartment Of Labor and the fair trade practice provi- sions to the Federal Trade Commission. This is op- posed by the Administration, which holds that no di'i)artm'eiit or commission can properly deal with re- coverv problems. The i)roposed transfer would probably pave the wav foi- abandonment of codes by a nund)er of the >maller industries, to which it is held the agreements have been a handicap. Administration officials have indicated that if the present structure is retained a nund)er of codes for industries engaged solely in intrastate commerce will be dro])i>ed. It is not considered likely that any successor for S. ('lav Williams, chairman of the National Industrial KV'(.-overv Hoard, will be named until the situation is cleared ui). Mr. Williams will leave the board this month, having accepted his api)ointment on a purely temporary basis only. Cuban Cigarettes Show Gain ASKD upon the output of piincipal factories, which account for appr(»ximately IM) per cent, of cigarettes manufactured in ('ul)a, it is esti- mated that '> packages over WMy i)roduction. In numbers, the 1934 production is estimated at 3,1!>4,77(MMM), and that of VXVA at 2,()38,2:34,(M)0, and the increase :):)n,r)3<;,(MK>. Ex- ports of cigarettes in VXU totaled :!2,r>41,(MM) and in 1933 totaled ;?(>,793,(KH>. The consumption of Cuban- ma,1(;2,229,(MKI and in 1933 only 2,(;()7,431.(M)(), an increasi' of r)r)4,798,00(). Although (»,889,0wnership of the brands previously leased. '^rnder the lease, which was made in 1923, the Tobacco Products Corporation leased certain brands to vour Companv, at an annual rental of $2,500,000 per vear. for a period of 99 years. Of this period 11 years luui expired, leaving 88 years for the lease to run. '*The subject of the commutation of this lease had been under consideration l»y your Management for a nund)er of years past. The decision to commute the lea^e at this time wa> based on the favorable interest rates now prevailing, and the lesultant large savings to vour Companv if the lease were commuted now. *»The total outlav in connection with the commu- tation of the lease was $36,748,873. The funds re- (piired were secured (a) from proceeds of bank loans Th* Tobacco World yes, and here's why — We know that smoking a pipe is different from smoking a cigar or ciga- rette . . . and in trying to find the best tobacco suited for pipes . . . Wc found out that the best tobacco for use in a pipe grows down in the Blue Grass Section of Kentucky, and it is called White Burley. There is a certain kind of this tobacco that is between the tobacco used for cigarettes and the kind that is used for chewing tobacco. This is the kind of tobacco we use, year after year, for Granger Rough Cut. Wc got the right pipe tobacco, made it by the right process . Wellman's Process . . we cut it right . . rough cut. The big Granger flakes have to hum cool and they certainly last longer and never gum the pipe. I Ae pipe tobacco that's MILD the pipe tohacco that's COOL ^^Jolis seem io like H © 19J>, LiGCiTT ft MrtM To»ACCO Co March IS, 193$ in the amount of $6,738,000, and of serial debentures in the amount of $18,532,000; these obliii:ations mature serially over a period from 1 to 13 years, with provi- sions for repayment in amounts which, toirether with the interest oii the bank loans and debentures, will total annually less than the $2,r)lM),()00 annual rental under the lease; and (b) by application of your Com- iianv's funds to the balance. ■''The annual savins: to vour Company tor the next 13 years will averaire' over $1,5(K),()()0 a year. The finaiiciuir has been so arran.i>:ed that, without increasing cash outlays beyond those heretofore made, the entire Assets : Cash $ 29,(K)5,961.54 ^Marketable securities ($5,466,938 ])riced at market (piotations), cost 5,633,836.^/ Accounts receivable, customers 9,168,680.63 Other accounts and notes receivable. . . 1,129,717.13 Leaf tobacco, manufactured stock, op- erating supplies, etc., at cost 121,^12,398.91 Accounts receivable from subsidiary and affiliated companies 311,206.98 Total Current Assets Investments : Capital stocks of partly owmed domes- tic and wholly owned foreign subsidiaries .$39,177,706.99* Other investments, including $303,757.98 deposited with State Industrial Commis- s i o n s, etc., at amounts not in ex- cess of cost 2,248,475.56 $166,861,801.46 Mortgages and loans receivable Real estate, machinery, fixtures, etc., at cost (net of allowance for deprecia- tion, $11,328,432.06) Prepaid insurance, etc Brands, trade marks, patents, good w'ill, etc •The American Tobacco Company's equity in the net assets of these sub- sidiaries, as shown by their balance sheets at December 31, 1934 (net assets of foreign subsidiaries con- verted at fixed rates of exchange) including intangible assets of $3,- 980,863.28, aggregated $40,495,- 768.02. 41,426,182.55 1,503,383.84 20,186,155.68 538,014.73 5^(^9,430.40 $284,6^4,968.66 loan, together with the interest thereon, will have been repaid at the end of 13 years, by applying this annual saving during each year to the reduction of the prin- cipal sum; accordingly, the annual saving thereafter will be the full amount of $2,500,000 a year which would have been payable under the lease for a further period of 75 years if the lease had not been commuted. "It gives us great pleasure to be able to report the satisfactory consummation of this transaction. The consolidated balance sheet of the Company at the end of 1933 sets forth assets and liabilities as fol- lows : Liabilities : Accounts payable $ 1,595,846.01 Dividend on preferred stock, for quar- ter ended December 31, 1934, paid January 2, 1935 790,495.50 Bond interest accrued 15,828.91 Provision for advertising, taxes, etc... 6,789,087.40 Accounts payable to subsidiary and affiliated companies 123,199.83 Total Current Liabilities . . . .$ 9,314,457.65 Six per cent, bonds, maturing October 1^ 1944 131,650.00 Four per cent, bonds, maturing Au- gust 1, 1951 831,250.00 Scrip and convertible dividend certifi- cates not yet presented for redemp- tion or conversion 7,849.00 Capital : Capital Stock: Preferred, six per cent, cumulative, par value $100 per share, auth- orized 540,106 shares, issued and outstand- ing 526,997 shares . . $52,699,700.(K) Common, par value $25 per share, authorized 2,0(X),000 shares, is- sued 1.609,696 shares (including 11,2(K) shares in Company's treasury) 40,242,400.00 Common B, par value $25 per share, auth- o r i z e d 4,0(X),(K)0 shares, issued 3,134,- 143 shares (includ- ing 44,362 shares in Company's treasury) 78,353,575.00 $171,295,675.00 SiRpn^s, including $29,- 451,261.88 paid in.. 105,251,116.73 $276,546,791.73 Less: Treasury stock at cost: 11,200 shares of com- mon stock and 44,- 362 shares of com- -"^^-•'^ ''''''''''' 274,329,762.01 $284,614,968.66 Kerr-Smith Act Ouestioned Kentucky Judge Expresses Doubt Regarding Constitutionality of Tobacco Production Control Act OICING doubt as to tlie constitutionality of the New Deal's tobacco production control act. Judge Charh's 1. Dawson declared in Federal District Court of Louisville, Ky., on March 8, '*the Constitution should not l)e rewritten by legisla- tion. Anv change in it should b«' submitted to the i)eople." A formal opinion on the validity of the Kerr- Smith tobacco act was rescrvi'd by .hulge Dawson, who allowed counsel two weeks in which to submit briefs. The test of the Kerr-Smith Act, the first in the United States, was precipitated l)y tlie suit of Oscar, Frank and W. E. Penn, brothers, who grow tobacco in Fayette County on rented acreage. Judge Dawson's statement followed one w^eek after Sem'tarv of Agrieulture Henry A. Wallace, act- ing on referenda which resulted in an overwhelming affirmative vote for continuance of the Kerr-Smith To- bacco Act, signed a proclamation making the act ap- plicable for tlie 19:]5-19:5(; crop year to practically all important tvpes of domestic tobacco. The rate of the tax on the sale of tobacco ]>roduced in 19.S5 to which the act is made applicable will l»e ;>.l 1 3 p<'r cent, ot the price for wliich such tobacco is sold, instead of the 25 per cent, in effect for 19:U-1935. The proclamation extending the act is effective at the beginning of the cro]) year. May 1, 19.35, but as markets for some tvpes of tobacco grown in 1934 wdl not close until after that date the Secretary signed a second proclamation leaving the tax rate at 25 per cent, for the jieriod commencing May 1, 1{)35, and end- ing June 30, 19.35. In this two-months' period it will not be possil)le for any tobacco grown in 19:J5 to be marketed. Th« Kerr-Smith Act levies on the sale (»f tobacco with respect to which the tax is applicable a tax at the rate of 33 13 per cent, of the price for which such tobacco is sold; provided, however, that if the Secre- tary of Agriculture determines and proclaims that the declared jmlicv of the act is best effectuated thereby, the rate of tax shall, for such period as the Secretar>' designates, be at such lower rate (not less than 25 per cent, of the price for which such toliacco is sohl) as he may prescribe. Th« tax was ftxe5 crop of tobacco was all planted when the act was approved antl it was determined that a rate of 25 per cent, wouhl better effectuate the declared policy of the act. As the Secretary did not prescribe in todav's proclamation a rate of tax lower than that fixed bv the act, the rate of 33 1/3 per cent, is effective for the 1935-1936 crop year. The 1934 programs under the Agricultural Adjust- ment Act, supplemented by the Kerr-Smith Act, ma5, 36 and 37; grown in Kentuckv, Tennessee, Virginia and Indiana. Cigar binder and filler. Types 41, 42, 43, 44, 51, 52, 53, 54 and 55; grown in Pennsylvania, Ohio, Indiana, Connecticut, Massachusetts, New York, Pennsylvania, Wisconsin, Illinois and Minnesota. The Kerr-Smith Tobacco Act was approved by Presich'ut Roosevelt on June 28, 1934. It was passed l>y Coimn-ess at the leciuest of tobacco producers who were ce under the pro- visions of the act for 19.35-1936. No referenda were conducted among growers of other types as there was not sufficient demand for the tax to warrant a vote. NEWARK OUT RATE CASE On March 5 a criminal information in twelve counts was filed in the United States District Court at Trenton, N. J., against Harry and Max Weissbard, doing business as Weissbard Cut Rate Shops, Newark, N J. The suit was filed to restrain violations of the provisions of the Retail Tobacco Trade Code relating to minimum retail prices for cigars and cigarettes. The case was prepared by Harlan Besson, United States Attorney, assisted by' Meyer Turin, Assistant Counsel, Litigation Division, N. E. A. tt n Tk« Tobacco World News From Congress 'AND EDERAL Departments From our IiVasmington Bureau 622AlB£e Bujiding X increase of ^KirMHHMXHJ in the income of to- bacco growers in 1J)34 over liKiL', from ^1U6,- (HKMKK) to *27:),0()(),()(l(), is attrilmted directly to the oi)erations of the Agricnltural Adjust- ment Act by Hen Kilgore, director of tlie American Farm Bureau Federation. Appearinir l>efore the House Committee on Agri- culture early this month during hearings on ])roi)osed amendments to the act, Kilgore asserted that without market inu agreements anrograms and marketing agreemen'is backe*! up witli licenses," he told the com- mittee, "the tremend(tus and continuouslv rising profits of tobacco numufacturers, and their consequent great bargaining j)ower in their own interests, will cause a return to past conditions of j)overty and dis- tress, Kilgore told the connnittee that there are only four large domestic buvers of cigarette tobacco and but two large domestic l)uyers of snutT tobacco. - ^ - — ft — — ^ - Cj3 Ct3 Ct3 E(iISLATION providing for compulsory offi- cial inspection and grading of tobacco sold at auction is meeting strong opposition from growers and warehousemen, back-jd by a res- olution of opposition adopted by the North Carolina Legislature. An amendment will be offered to the measure, when it reaches the floor, which would ])rovide for a referendum to determine the wishes of growers, fol- lowing the course pursued in the nuitter of the Kerr- Smith production control bill. Members of Congress from the tobacco growinjr states are receiving a large number of conununications from constituents who believe that no good ])urpose would be sorveil through tlie enactment of the legis- lation. Representatives of the Bureau of Agricultural Economics of the Department of Agriculture who re- cently appeared before a sub-committee in behalf of the bill, which was introduced by Representative Flanna- gan of Virginia, declared that tobacco prices improve on an average from one to two cents per pound as a result of official grading. It was also said that im- provement in the better grades ranges from three to five cents a pound. IS ROBLKMS of ressed in the last two Congresses, would inunediately yield more than $4(K),- (MK),(HH) a year, or slightly in excess of the income de- rived from the taxes it would disjdace, and that it would ijrovide far more revenue than the present mis- cellaneous taxes as conditions improved. The Tobacco World ANNUAL EXPORT AND IMPORT STATEMENT OUT UK long-established exporter of tobacco looks to official export statistics of the Bureau of Foreign and Dcmiestic Commerce, Department of Commerce, the primary source for export data, to identifv shifts and trends in exports of his eommoditv. The prospective exporter finds them a .aiide to existing markets for his product overseas. Tobacco classifications for export purposes meet with the approval of the industry, in that they cover all export types of leaf tol)acco and tobacco products siiipi)ed out of the I'nited States in commercial quan- tities. . , ' The annual statement ot the export and import trade of the United States in leaf and manufactured tobacco, for the calendar year 1034, with comparative tables for 1933, has just been issued by the Tobacco Division, Department of Commerce. The statement is entirelv statistical and contains ]mges of preliminarv data. It shows tvpes, quantity, value and countries of destination of exports, and like data and countries of origin of imports. . , , n < ♦ In addition to export and impoit data the state- ment contains much valuable information of interest to the tobacco and allied industries, coming within the scope of tobacco activiti<'s of the Treasury Department, Bureau of Internal Revenue. These djita, (luoted from publications of the Treasury Depai'tment are those most helpful to the tobacco dealer, exporter, importer or manufacturer aiul for that purpose have been as- sembled in conqiact form. The 1034 issue of the annual statement is being rapidlv absorbed. Copies may be purchased direct from the Bureau of Foreign and Domestic Commerce or anv of its district offices. Price per copy— domestic mailing, twentv-five cents— foreign mailing, thirty-tive cents. Make checks and money orders ]>ayable to the Bureau of Foreign and Domestic Commerce. VISIT DAVIS HEADQUARTERS Harrv Shetzline and John Diely, members of the Yahn & McDonnell firm, paid a visit to the headquar- ter> of F. A. Davis & Sons, cigar and tobacco distrib- utors of Baltimore, last week and returned very much impressed with the fine organization maintained by this old established house, and i)articularly with the completeness of their advertising department. The F. A. Davis & Sons Company are distributors of a verv fine and varied line of cigars and tobacco prod- ucts. Their **New^ Day" plan of merchandising is also working out very successfully. WHAT FARMERS GOT Tobacco farmers participating in the programs of the Agricultural Adjustment Administration have re- ceived a total of $19,150,622 in rental and benefit pay- ments, of which $2,()5(),618 was for 1933, and $17,094,- 004 for 1934. The total is cumulative from May 12, 1933. Bv commodity adjustment programs, $21,365,- 735 was distributed to tobacco farmers, and cumulative returns from tobacco processing and related taxes reached a total of $38,867,539.34. March ij, 1935 America' outstanding 5^ cigar value For years, Muriel has been a "best seller" everywhere at ten cents. Now, in its new Senator size, and at its new nickel price, Muriel stands out as the five-cent cigar combining Domestic and Havana charm at a price any smoker can afford. Don't miss Muriel as the sure-fire five-cent leader on your cigar counter. P. LORILLARD C0MPA:VY, INC. Established 1760 110 WEST 40lh STREET • XEW YORK .CITY TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION ^^ftf}^ OF UNITED STATES "^"^^j^k^^ JESSE A. BLOCn. Wheeling. \V. Va ;-,:"S""-j*"! JULIUS LICHTE.NSTEIN. New York. N. Y ;.... • .Vice-President WILLIAM BEST. New York. N. Y Chairman Executive (^mmittee MAJ. GEORGE W. HILL, New York, N. Y Vice-President GEORGE H. HUMMELL. New York. N. Y V.ce-Pres.den H. H. SHELTON. Washington. D. C w-**o •^!2! WILLIAM T. REED. Richmond. Va v-"p •^«! HARVEY L. HIRSrr, Philadelphia. Pa ^' t!!!.?,^, ASA LEMLEI.V. New York. N. Y •• •."■•yV,- •"•^J?^!."!!' CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director Headquarter*, ^«1 Madison Ave., New York City RETAIL TOBACCO DEALERS OF AMERICA. INC. WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y. ....President CIIFFORD N. DAWSON. Buffalo. N. Y Executive Vice-President JAMES C. THOMPSON, Chicago, III treasurer ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS iOHN H DUYS, New York City V.'*" iV:" •S'*'-^*"^ II "ton RANck, Lancaster. Pa -.F.rst Vice-President D. EMIL KLEIN, New York City ^^^*U.*^T«i.treJ LEE SAMUELS. New York City SecreUry Treasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN. 180 Grumman Ave., Newark, N. J e'"Vf""»'"-^!-! ALBERT FREEMAN. New York. N. Y -.First Vice-President IRVEN M MOSS, Trenton, N. J Second Vice-President A. STERNBERG, Newark, N. J Secretary RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA MOB a T^ I EVITONE President &?MUEL MAGID. 2001 N. Mervine St.. Philadelphia. Pa Secretary THE NATIONAL ASSOCIATIONS OF TOBACCO • DISTRIBUTORS, INC. E, ASBURY DAVIS. Baltimore. Md. ■■■ ■■-■--"^ S^«SS JOSEPH KOLODNY. 200 Fifth Ave.. New York, N. Y T^?rer GEO. B. SCRAMBUNG, Cleveland. Ohio Treasurer UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION Tr^«v w RRnWN President HERMAN H.YAFra.»V Fox Building. Philadelphia. Pa Secretary 13 Eatablithed 1886 "BEST OF THE BEST 99 *-•'•"•"- ■" A. SANTAELLA & CO. Office, 1181 Broadway. New York City FACTORIES: Tampa and Kep West. Florida OUE HIGH-GRADE NON-EVAPOSATINO CIGAR FLAVORS Make tobacco meltow and aoiootli In charactar and Impart a most palatable flavor FUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. AKOMATIZEI. BOX FLAVORS. PASTE SWEETENEKS FRIES 8k BRO., 02 Reade Street. New York wmmmmjim Classified Column The rate fot this column it three centt (3c.) a word, with a minimum charge of »eventy-five cents (75c.) payablt strictiy in advance iJeWsaZMW/WMnW/WrWaB POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large following. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON Automatic Machines, wants a position. Also instructs beginners Address Box No. 558, "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to restaurants and cafe trade. Would like to specialize in 5 and 10 cent cigars under my own brand. Manufacturers communicate with me in reference to worth-while line. Hugh Donowick, 242 Milnor Ave., Lackawanna. N. Y. FOR RENT 30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A 3-story and concreted basement building adjacent to P. R. R. freight station in York, Pa. Building of sufficient strength to accom- modate at least SO cigar-making machines per floor. See A. KauflF- man & Bro., York, Pa., for inspection and details. • HAVANA CIGARS BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- gars." Specially those Havana blended, "Good to the last Puff," manufactured by A. Ramirez & Co., Pott Office Box U^, Tampa, *!». Write them for particulars today. Tobacco Merchants' Association Registration Bureau, '^tw^K a^ Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Hegistration, (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 M«r> chanta' Association on each registration. Note B— If a report on a search of a title necestttatea the reporting of mora than ten (10) titles, but less than twenty-one (31), an additional charge of On* Dollar ($1.00) will be made. If it necesaitatea the reporting of more than twenty (X) titlea, but less than thirty-one (31), an additional charge of Two DoUara ($2.00) will be made and ao an additional charge of One Dollar ($1.00) will h* made for every ten (10) additional titlea neceasarily reported. REGISTRATIONS WEYLIN: — 46,420. For cigars. Garcia Grande Cigars, Inc., New York. X. v.. December 12, 1934. COOKIE JAR:— 46,422. For pipe tobacco. R. R. Tobin, Detroit, Mich.. January 18. 19.15. ONE FOR TWO:— 46,423. For all tobacco products. Consolidated Litho. Corp., Brooklyn, N. Y., February 11, 1935. TRANSFERS WENLYN: — 43,853 (Tobacco Merchants .Association). For cigars. Registered July 15, 1924. by Kdward Hollinger, Windsor, Pa. Transferred to Garcia Grande Cigars, Inc., New York, N. Y., Feb- ruary 20, 1935. PLEE-ZING:— 44,172 (Tobacco Merchants Association). For all tobacco products. Registered April 10, 1925, by Geo. Schlegel, Inc., New York, N. Y. Transferred to Nordacs Cigar Co., Tampa, Fla., and re-transferred to Havana-Florida Cigar Co., Quincv, Fla., Feb- ruary 25. 1935. BIG BEN:— 14,289 (Tobacco Leaf). For cigars. Registered No- vember 15, 1897, by L. E. Neuman & Co.. New York, N. Y. Through mesne transfers acquired by C. F. .\lthoff, Hanover, Pa. and re-transferred to Brown & Williamson Tobacco Corp., Louis- ville, Ky., March 5, 1935. Recent visitors at John Wagner & Sons, distrib- utor.s of fine cigars and tobacco products, 233 Dock Street, included Barton Lemlein, of M. Sachs & Co., who has just returned from a trip through the western aprt of the United States, and who reports a highly successful trip; John L. McGuerty, representing the Romeo v Julieta factory of Havana, and also the Pre- forrcd Havana Tobacco Co., manufacturers of the Eden brand. Mr. McGuerty stopped off in Philadel- phia en route to the Pacific coast. Walter M. Woolf- son also visited the Wagner headquarters last week, ^fr. Woolfson is now associated with Leonidas Arango, formerly connected with Arango y Arango, and now specializing in the manufacture of an excellent line of high-grade cigars. Send Two Dollars, with the coupon below to iTie Tobacco World, 236 Chestnut St., Phila., Pa., ai>d get your copy twice a month for a y^ir. Name APRIL 1 1935 RECEIVED COMMON SENSE The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phila., Pa. Hanover, Pa. Cincinnati, Ohio Ynrk Pa AUTOKRAFT BOX CORPORATION c^^iZioiiL Lima Ohio Detroit Mich. A NatioixWide Service Wheeling, W. Va. ♦ " iiiiniiiiiiiiiiiiiiiiiimi iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii UBLISHED ON THE 1ST AND 15th OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. fl^ After aff "^'^i^ clothing satisfies l^^c^ a good cigar WOODEN BOXES Are the Only Natural Humidor for Cigars. Pack your cigars in wooden boxes and preserve their delicate aroma, mellowness and flavor right up to the time they are passed over the counter to the customer. 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 Regirdlet. ot Ni<« THE iEST CIGARS AMt PACKO I^ WOODEN BOXES THE TOBACCO WORLD Vol. 55 APRIL 1. 1935 No. 7 HESTERFIELD, first, 17,103,046; Lucky Strike, second, 15,475,371; Camel, third, 15,- 397,399. No, dear reader, those figures do not represent production or sales. They represent lines of advertising in newspapers during 1934. They mean that the Big Three led all advertisers in the pur- chase of newspaper space last year, as they did in 1933. In fact, the combined linage of the three manufacturers of those brands of cigarettes amounted to no less than 17% per cent, of the total newspaper linage of the 300 largest advertisers. You will get the full force of that statement when you reali/.e that the 300 advertisers represent a total of 821 individual accounts, whereas the Liggett & Myers, R. J. Reynolds, and American To- bacco listings include only seven separate accounts. Bayuk Phillies ranked first among the cigars as the most heavily advertised in newspapers, with 1,260,259 lines. White Owl was second, with 859,275 lines; and El Producto was third, with 664,478 lines. HOSE art' only a few of the interesting facts gleaned from a study of the compilation of newspaper advertising prepared for Printers' Ink by Media Records, Inc., that service of in- valuable helpfulness to publishers, advertisers and ad- vertising agencies organized several years ago by Bill Nugent and his associates. Of the 300 leading ad vertisers, for instance, only 14, or less than 5 per t-ent., are manufacturers of tobacco products, yet their linage adds up to more than 21 per cent, of the total. Of the 821 individual accounts, only twenty-nine, or ap- proximately 3M.» i)er cent, are listed in the tobacco clas- sification. Incidentally, the total linage of these to bacco advertisers, 60,692,569 lines, was an increase of njore than 22 per cent, over the previous year. X THE LIST prepared by Media Records, the lineup is as follows: First, Liggett & Myers; second. General Motors ; third, R. J. Reynolds ; fourth, American Tobacco Co. But the Gen- eral Motors aggregate consists of twenty-five separate accounts, and the linage of its biggest subsidiaiy, Chev- rolet, is not greatly more than half that of Camels. While the total new'spaper linage of R. J. Reynolds is greater than that of the American Tobacco Co., all of the latter company's advertising was devoted to Lucky Strikes and the former was divided among Camels, Reynolds Products, and Prince Albert. As separate accounts, Luckies rolled up a bigger total than Camels. Because of its interest to the trade, we append the complete list of tobacco advertisers and their linages: Liggett & Mvers Tobacco Co., 19,585,349 (Chester- field, 17,103,046;* Granger, 2,319,001; Velvet, 163,302). R. J. Revnolds Tobacco Co., 15,875,063 ((^amel, 15,397,399; Revnolds Products, 389,604; Princt' Albert, 88,060). American Tobacco Co., 15,475,371 (All Lucky Strike). P. Lorillard Co., 4,256,245 (Old Gold, 4,225,455; Union Leader, 30,790). General Cigar Corp., 1,452,084 (White Owl, 859,- 275; Robert Burns, 396,560; Van Dvck, 196,249). Bavuk Cigars, Inc., 1,260,259 (All Bavuk Phillies). G. H. P. (^igar Co., Inc., 840,667 (El Producto, 664,478; La Azora, 176,189). Congress (/igar Co., Inc., 423,116 (La Palina, 302,- 782; Recollection, 120,334). Consolidated Cigar Cov\)., 409,230 (Harvester, 233,024; Dutch Masters, 176,206). Waitt & Bond, Inc., 295,573 (Blackstone, 283,387; Totem, 12,186). Webster-Eisenlohr, Inc., 261,302 (Girard, 174,166; Tom Moore, 76,284 ; AVebster, 10,852). Porto Rican American Tobacco Co., 214,216 (All Portina). E. Kegensburg & Sons, 182,370 (Admiration). Larus & Bro., Inc., 161,724 (Domino, 116,381; Edgeworth, 45,343). IGARS in February resumed their upward tiend, after a setback in January, ami gained 21,650,111, or 7.24 per cent. Class A gained 27,262,830, or 10.41 ]>er cent., representing more than SM) per cent, of the total cigar withdrawals. Class B gained 2,089,470, or 114.28 per cent. Classes i\ D and E declined. Cigarettes gained 138,557,183, or 1.51 \)er cent. : Little cigars,. snutT and manufactured tobacco (smokinji and chewing) declined. During the first eight months of the Governmental fiscal year, which be- gins in July, cigars recorded a gain of 129,068,779, or 4.31 per cent. Cigars from the Philippines during Feb- ruary declined 510,325, or 2.52 per cent., and cigars from Puerto Rico increased 334,625, or 12.19 per cent. MERICAX Commercial Attache W. J. Donnelly is authoritv for the statement that increasetl exports of cigars were mainly responsible for the improvement in value of tobacco products exportation from Cuba in February. He says that a continued increase movement in the exportation of Cuban cigars to the United States has been noted. In February of last year, a total of 108,778 cigars, valued at 13,654 pesos, w^as shipped to the United States, w^hile the same month this year showed 165,131 cigars, valued at 17,702 pesos. Value of tobacco products shipments to foreign countries in February amounted to 1,054,270 l>esos, compared with 1,025,196 pesos in January, and with 887,685 pesos in February, 1934. Cigar exporta- tion increased from 2,470,610 in Januarv, 1935, and 1,514,479 in Februarv, 1934, to 2,986,298 in February, 1935. The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; ticrald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- able only to those engaged in the tobacco industry, $2.00 a year 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter, December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. Cuban Tobacco Dealers Optimistic UBAX tobacco dealers are well satisfied with the volume of trade in the lirst two months of 11)3.3. While exports have held np well, the demands of local mannfaclurers, especially of c-i-ari'tte makers, have been stronger than for many slight months past. The fact that there has been a increase in the foreign shipments during February, as compared with January, is regarded with particular optimism. February exports maintained the general level for Januarv, despite the fact that in January the requirements of 'the Swedish Tobacco Monopoly were tilled. Tlie cigar export trade continued to hold the atten- tion of Cuba manufacturers, who have been supplying a steadily mounting demand from England with high qualitv products. Total exports of leaf and scrap tobacco were a shade lower in February than in January, but the in- creased exports of high-quality cigars to British im- porters caused the slight increase in value of tobacco products exported in January. Shipments of high- grade wrapper, practically all of which are usually taken by American manufacturers, increased 87,523 pounds, valued at $194,231, from January's shipments of 65,772 pounds, valued at $159,451, but shipments of unstemmed filler tobacco and of stemmed leaf and scrap tobacco decreased slightly. February exports of filler were 710,258 pounds, valued at $244,230, compared with 898,524 pounds, valued at $265,470, in January. Representatives of the Spanish Tobacco Monopoly are seeking bids for its year's supply of leaf tobacco. The Spanish Government, by the terms of Article II of the Spanish-Cuban Commercial Treaty of 1927, agrees to take 9,000,000 pesetas worth of Cuban leaf and smoking tobacco per year, this being the approximate equivalent at current exchange (13.75 c^nts per peseta) of $640,000. , , In February, 1935, 2,986,000 cigars, valued at $284,022, were exported, over one-third going to Great Britain. This compares with 2,471,000 cigars, valued at $213,253, in January 1935. Exports of cigars to the United States increased 51.8 per cent, in February 1935, as compared with Feb- ruary 1934, but decreased 21.5 per cent., as compared with January 1935. The unstemmed tupiivalent of Cuban tobacco ex- ports to the United States, January and February 1935, places total exi)orts at 2,439,053 pounds, detailed as follows: Unstenuned— wrapper 150,993, filled 563,- 539; stemmed leaf— 1,257,911, scrap 458,370, and cigars B240. ^ . The new crop, especially in the Province ol Pinar del Rio, is reporter to be in good condition, in spite of this winter's repeated cold spells and occa- sional unseasonable rains. Few sales have yet been made, but buvers are favorably impressed with the color and texture of the leaf now being cured. Pre- liminary informal estimates place the current Vuelta Abajo and Semi-Vuelta crop of Pinar del Rio at double that of last vear. The official estimate for last year's crop in these two Pinar del Rio regions was 14,495,237 Spanish pounds. Philippine Islands The manufacture of cigars in the Philii»pine Is- lands continued to increase in 1934, reaching a total of 314,210,620 cigars, compared with 264,771,690 in 1933 and 259,408,723 in 1932. Exports of cigars con- tinued to increase, amounting to approximately 225,- 000,000 in 1934, compared with 196,141,404 in 1933 ami 182,574,853 in 1932. Exports to the United States m 1934 amounted to 208,269,000, compared with 18o,17o,- 000 in 1933 and 170,156,000 in 1932. (American Trade Commissioner J. B. Richards.) Although the growing of tobacco in the Philippine Islands from Virginia seed for the domestic manufac- ture of cigarettes is being encouraged by the Govern- ment, domestic manufacture has shown a steady de- crease each year since 1928, while imported cigarettes, chiefly American, continued to hold the preference ot consumers. In 1928, domestic production o^^cigarettes amounted to 5,110,187,247, decreasing to 4,J18,684 52.$ in 1930. In 1932, production amounted to 3,84b, /04,»ib, decreasing to 2,965,181,495 in 1934. It is claimed by FiUpino consumers that domestic cigarettes are in- ferior in qualitv to American cigarettes, a standard on which Filipino' consumers insist, to the extent that thev are economically in a position to do so. It is claimed that domestic tobacco grown from Virginia seed does not seem to adapt itself well to the soil, but its qualitv could be improved if better curing methods w^ere used. (American Trade Commissioner J. J3. Richards.) Netherland West Indies It is reported that an American manufacturer of cigarettes has arranged to care for the Netherland West Indies market by packing cigarettes at Curacao from blended and ready-cut tobacco. The tad ory will employ about thirty persons to roll and pack, and the company is said to expect to be able to undersell other makers,' principally American, who have by far the largest share of the market, owing to a saving ot duty. \ cigarette manufacturer of Santo Bommgo is also locating at Curacao. Dominican cigarettes are popular among the natives, and, with the reduction m piyo assured bv the smaller duty, will be in a mucii better position to compete with American manutacturers not having factories in the colony. The latest available statistics show that 66.3 per cent, of cigarette imports were American and 23.7 per cent, were from Santo Domingo. Canada Exports of Bright Flue-Cured tobacco f/om the United States to Canada in 1925 totaled 9,444,81.i pounds, and average annual exports in the f ^ lolowing vears 1926-1931 amounted to approximately l.^,0tHJ,0Otj pounds. In 1925 Canada grew 6,268,(KX) pounds ot Bright tobacco, and by 1931 the production reached 24,6(K),(XH) pounds, increasing in the next two years to more than 27,000,(HK) pounds. A preliminary estimate places the crop of 1934 at 22,(KKMKK) ]M)unds. Exports of Bright tobacco from the United States to Canada have niateriallv decreased since 1931, and in 1934 the amount was 7,830,301 pounds, compared with 8,3/o,9.i4 pounds in 1933 and 8,832,162 pounds in 1932. hxporU of domestic Bright tobacco from Canada to the Unitetl Kinedom in 1934 amounted to 4,917,345 pounds, com- pared with 11,499,712 pounds in 1933 and 7,892.000 pounds in 1932. TA* Tobacco World Code Helped Small Retailer Part of Statement at Code Meeting in Washington By WILLIAM A. HOLLINGSWORTH President, Retail Tobacco Dealers of America U~ HE retail tohaeco industry involves from 750,- 000 to' 800,000 retail outlets. Tohaceo prod- ucts are either the principal line of mer- chandise sold or their sale eonsidered as niaking substantial contribution to the volume of sales in more than 200,000 retail establishments. It is highly jirobable that tobacco products are sold in more retail outlets than any article of merchandise circulated in commerce ; therefore, the code governing the retail to- bacco trade must rightly be classified as a major code. The Retail Tobacco Code could never endure if tunsolidated with, or made subordinate to another code; for instance, the General Retail Code. Many dominating members of the general retail trade were iormerlv the outstanding loss-leader ijractitioners in the retail tobacco industry, thus could lever secure istencv of such an integration when he issued his Kxecutive Order giving autonomy to the retail tobacco industry. The Retail Tobacco Code as well as the amendment to be considered by this Board was conceived and orig- inated bv representative members of the retail tobacco 1 1 ade— mostly small independent dealers. The Presi- dent of the National Association, this proponent, is an independent retail tobacco dealer, operating a store in the arcade of the Woolworth Building, 233 Broad- wav. New York City, a branch in the Graybar Building, 420 Lexington Avenue, New York City, and another branch at 2 East Forty-sixth Street, New York City. The code and the amendment are designed to protect and foster small enterprise and to prevent powerful interests from oppressing or destroying the individual initiative of the small independent merchant, who de- pends upon the profits of his little shop for his liveli- hood and the support of his family. In the retail tobacco business, unbridled competi- tion and price-cutting have proved to be the inhuman instruments of monopoly. ^Nlore than SO per cent, of the cigarettes consumed in the United States are "i*in"- factured under three standard brand trade-marks. The sale of these brands accounts for more than 50 per cent. of the average retail tobacco dealer's volume and his -eneral welfare is largely dependent upon profits mad© from the distribution of these highly advertised brands of cigarettes. Recently, when the dominating position held by these three big brands was threatened with the competition of the rapidly growing tenceni brands, in some mysterious manner retail price wars broke out all over the country. Throughout the period of these wars, the little retailers were not only denied any compensation whatever for their services as distribu- tors, but were compelled to sell these cigarettes to the consumer at an actual loss. Worst of all burdens upon the little retailer w^ero the ever-increasing attacks of the loss-leader pirates upon their small businesses. Because cut-rating to- .^hil I. 1935 bacco i)roducts had become known as good bail to in- duce traffic into establishments depending upon the sale of other lines of general merchandise, several unre- lated and alien businesses sold tobacco products to the consumer at net invoice cost or below to secure patron- age for their large profit items of merchandise and the little retailers were faced with either losing their entire trade to the loss-leader pirates or meeting the ruinous cut prices established by them. It is a well-known fact that before the Administra- tive Order establishing minimum retail prices for cigar- «'ttes was approved, certain concerns engaged in the sale at retail of products other than tobacco had adopted as a permanent policy the practice of selling cigarettes at less than cost of purchase and handling. These sales, which involved a comparatively trifling loss for each customer served, were employed for the purpose of attracting trade to the higher profit items of goods sold by the loss-leader practitioner. The theory is that a small loss on cigarettes will be more than compensated through the purchase, at handsome profits to the seller, of the other articles principally liandled by the seller. The use of tobacco products as loss-leaders had become almost a universal practice by July IH, 1934, the date the Administrative Order fixing a minimum retail price for cigarettes became eflfective. Tobacco products and especially cigarettes and smoking tob'\cco are particularly adaptable to this nefarious practice because (1) they are in universal demand; (2) they con- sist almost entirely of extensively advertised and na- tionally known trade-marked brands for which a great public demand has been created; (3) they are sold at retail at low unit prices and their intended prices are of such general knowledge that a cut price is immeaiately recognized; and (4) they have an unusual velocity of sale, thus, the possibility of compelling the fretiuent return of the purchaser. Today after the Cigarette Order has been in oper- ation roundly three-quarters of a year, there is but one situation in which litigation is pending on the Cigar- ette Order, and there are not a half dozen troublesome violators in the whole country, and instead of a liabiUty to XRA, the Cigarette Order is an outstanding credit. Within tw^enty-four hours after the Administra- tive Order establishing minimum cigarette jirices was signed, the Code Authority w^as able to report almost perfect compliance throughout the trade, and this com- pliance even embraced the ruthless price-cutters and the loss-leader practitioners. You might well ask how this miracle was accom- ]ilished. To be perfectly truthful, simplicity and mod- esty did the job. The calculations employed to secure the mark-up were so simple, no excuse could justify a misunderstanding, and the percentage of mark-up was so modest no one could refuse to accept and obey it. Consequently, almost immediate voluntary compliance followed the issuance of the order. Never was a great number of people inoie grateful for an Act of Congress than were the members of the retail tobacco trade for the XRA; for about the time the NRA was enacted into law, the morale of the trade was at its lowest ebb. The trade was burdened with infinite misery, and was sulTering from every eco- nomic ill imaginable. Its casualty list was rapidly reaching a balance with its roster and its Inventorv was beginning to resemble an entry in the Doomsday liook. The little dealer — so often referreil to as small enterprise — could see no hope for either himself or his little business — dav after dav he stood stoically bv watching the causes of his sufferings nmltiply, and w'aited for the eventual visit of the sherilf. There was nothing else for him to do. He hadn't even the means to quit, and beside, there was little inducement to quit honorably — better to stand bv and take abuse from creditors than to join the ranks of the u3iemployed where all hopes were absolutely forlorn — plenty of time to swell those ranks after the creditors and the sheriff had dispossessed him — and each day his anxiety and agony increased and every day he said his prayers with a little less confidence in their worth. The labor employed in the industry, realizing the deplorable financial condition of their employers, were glad to hold their jobs at any price and on any terms. The outlook for the industry was hopeless. Little wonder the NRA was greeted with thanks- giving and rejoicing. Eyes were turned heavenwards and prayers of sincere gratitude were offered in the name of those who fostered this legislation. Almost over night, the Blue Eagle became the symbol of emancipation from debt-ridden depression, and hope- fulness, enthusiasm and confidence replaced fear and despair. But the promises of a better day w^ere not so easily attained for the Retail Tobacco Industry. It was only after long and tedious negotiations that the real benefit to the industry was procured, the Administrativr Order establishing a yninimum price for cigarettes. The day this order commenced to operate marks the day recovery began in the retail tobacco business. This recovery has not been rapid nor has it been to a de- gree which could l)e considered conclusive, the indus- try was too sick and too far gone to allow any quick recovery, but convalescence has been progressive and the outlook is now encouraging. Today, retail tobacco dealers are catching up on back bills, amortizing long-standing obligations, liqui- dating arrears in rent, and best of all, regaining their credit standing with the wholesalers and raatiufac- tnrers. A short time ago, one large wholesaler in the Metropolitan Area of New^ York told of restoring credit accounts to more than seven thousand retailers, also a large manufacturer cited how rapidly his slow-moving retail accounts w^ere coming into line with the com- pany's credit terms throughout the country. In endeavoring to account for the unusual volun- tary compliance whh the Cigarette Order, it was stated the modesty with which the retailers approached the mark-up played an important part in securing such imiversal compliance, — this same theory might be ad- Tanced to account for the consumers* acceptance of the now stable minimum price for cigarettes. Its accept- ance by the consumer has been so complete that not a .*!ingle instance of consumer resistance has been re- />orted to either the Code Authority or the National Trade Association. And, instead of any diminution of sales, which usually refiect inarticulate consumer re- sistance— a substantial increase of consumption of cigarettes has come about. Internal Revenue figures show cigarette consumption in this country reached its all-time peak in 1934. Labor has given its unqualified endorsement to the Cigarette Order, also every support for its continuance. While no definite figures are available, it is generally conceded a substantial amount of reemployment has taken place in the industry since the Cigarette Order was approved, and it is also agreed that wages in the industry have increased materially. The improved condition of the retailer is reflected throughout the en- tire tobacco industry, for the wherewithal to meet all the payrolls of the tobacco industry flows from the cash registers of the retail dealers. From this exposition concerning the effects of the Cigarette Order, only one conclusion can be drawn. It has been beneficial to all and harmful to none, and to disallow its continuance, would be as unreasonable as tragic. Its discontinuance would throw the entire to- bacco industry into a tail-spin and bring about a crack-up from which recovery or even salvage would be impossible. Thousands upon thousands of little shopkeepers and their dependents — a large fraction of the group which has been termed Small Enterprise — have their ears turned towards Washington today for news of this hearing, and are anxiously awaiting its outcome. SMOKING TOBACCO In the original complaint against the cut-rater and loss-leader, smoking tobacco, chewing tobacco and smiff were included. Similar relief was sought from the ruthless cut-rating of all standard brands of tobacco products. That relief was not granted against the cut-raters of smoking tobacco, chewing tobacco and snuff at the time, was partly due to the fact that little data concerning the prevalence and degree of cut-rating was available. At the time, the industry was advised by the Ad- ministration that action on the establishment of a minimum price for smoking tobacco, chewing tobacco and snuff, would be deferred until a further study could be made to ascertain the prevalence and extent of cut- rating on these products. The Code Committee pro- tested against the exclusion of these products from the Cigarette Order, but finally, had to acquiesce. It was argued at the time that the exclusion of these products from the order would immediately cause them to be- come the footballs of the cut-price pirates and loss- leader practitioners. This prediction came true in aggravated form; today, practically every standard brand of smoking tobacco, chewing tobacco and snuff is being used as loss-leader bait. Not being able to meet the competition of the price- cutting racketeers and the loss-leader practitioners, the little tobacco dealer has lost between 60 and 70 per cent, of his business on these tobacco products. In viewing the effects of the Retail Tobacco Code upon the entire tobacco industry, particularly from the point of consumer consumption and manufacturers' production, we find the code has been beneficial with one outstanding exception — smoking tobacco. The in- ternal revenue figures show production of this one manufactured tobacco product almost static. WE ASKED OUTDOOR PEOPLE Is this fact important to 15)u ? ***0±io a^t^ ff "^euyj^ ■oy ^■^^^^^^ »ViV» t».v- *-**. J'.^ CtM> R. J- iv-yi;o!d^ I'-'U. L'O. (Continued on Page 10) Aprtl I, 19S5 The Tobacco World MIA. BAYUK BRIEFS X THE WAY to irreater sales on Bayiik Phillio is the selling oriranization of the Capital City Cigar & Tobacco Co., Lansing, Mich., with a campaign assisted by C. M. Hrouwer, Baynk salesman . . . Springfield, Ohio, territory, with L. W. Bosart & Co., distributor, showing greater strength on Bavuk Phillies. H. L. Lacev, Baviik's salesman, wa< recentlv engaged in missionary work tor that distrib- utor . . . Edgar Watlington, Bayuk salesman, just finished a drive with the sales force of Rap]) & Klein Cigar Co., Bavuk Phillies distributor for the Laravette, Ind., territory ... In the Danville, 111., territory, where Bavuk Phillies are distributed by L. D. McKinzie & Co. and showing nice progress, distributor is aided by C. M. Bristow in an effective campaign . . . Reports indicate the Schagrin-Roseman Co., Youngstown, Ohio, is open ing new retail outlets on Bayuk Phillies in their sector . . . D. Kurman & Co. have been entrusted with the Milwaukee territory for IMiillies and are now laving lines for wide distribution, with the assistance of W. H. Schulte and C. T. Herbert, Bavuk salesmen. G. H. P. JOTTINGS If you think those new FA Producto ads which were noted in the last issue of Tobacco World and are now appearing in the newspapers, are good, wait until you see the new La Azora series, to be released shortly. They're '* naturals" . . . D, A. Jenks, assistant sales manager of G. H. P., spent last week in the Scranton, Buffalo and Rochester territories . . . Business is good, thank you ... A recent visitor at the Third and Brow^n headquarters was ^L Wirtzman, of Wirtzman & Dines, who operate four locations in Pittsburgh, featur- ing El Producto and La Azora. Accompanied by his wife and mother, Mr. Wirtzman motored here and then drove on to New York for a week's vacation there . . . The G. H. P. organization learned with regret of the recent death of Mrs. Jules Tafel, wife of a member of the firm of Tafel Bros., Piqua, Ohio. William Freeman, of the Medal of Honor Cigar Company, visited his distributor (John Wagner & Sons) last week. This brand is increasing in distri- l)ution and sales here. Barton Lemlein, of M. Sacks & Co., was a recent visitor among the trade here. Steve Hertz, of D. Emil Klein Co., w^as a visitor last week. His Haddon Hall is a ready seller in this market. Harold Dean, of the Bee Hive, AVilmington, Del., was in town last week visiting jobbers and securing stock for his trade. John Wagner & Sons report business on their Monticello cigar showing a gratifying increase, par- ticularly on the three for twentv-five cents size, which was recently reduced from ten cents. Their Wagner brand is also enjoying an increasing demand, espe- cially in the top sizes. Yahn & McDonnell, distributors of the new Cigar- illos, manufactured in Tampa and retailing at five cents for a package of two, report that they are having a hard time keeping a sufficient stock of this quality brand on hand. This brand has met with a hearty re- response from the consumer. S. Anderson, representing the American Tobacco Company on their Antonio y Cleopatra, Bock Pane- telas, etc., is planning to \'isit Baltimore and Washing- ton trade this week. These quality brands are enjoying their share of the increase recorded in cigar production during the past few months. Yahn & McDonnell have recently introduced their own brand of smoking tobacco to this market, under the brand name of Crosby Square. This brand retails at fifteen cents a package and the first shipment melted away like snow in the sun (to use their own expres- sion), and an order for a rush shipment had to be dis- patched almost as soon as it was placed on the market. The Tobacco World AprU I. 1935 9 News From Congress Ft D E R A L Departments From our IVashinoton B(MEAu CZilkMU Builomg 0RP:CASTING extension of the Recovery Act, President Roosevelt on March 21st appointed Donald R. Richberg, former general counsel of the NRA, as acting chairman of the National Industrial Recovery Board, to serve until Congress has passed on the new legislation. Richberg succeeds S. Clay Williams of the Reynolds Tobacco Company, who became head of the board when it was created by President Roosevelt to administer the NRA following the resignation last year of General Hugh S. Johnson. Williams had accepted the position only temporarily and submitted his resignation to the President early this month, in order to return to his own business. Confidence that the law would be extended, as re- quested by him February 20th, was voiced by the Presi- dent in announcing Richberg 's appointment, when he said: "The President expects that NRA will carry on its present duties vigorously and effectively, with due consideration of all interests involved, while legislation is pending and shall assist in every way possible in the enactment of legislation urgently needed to retain and to advance the industrial recovery program, as embod- ied in the present law, with the anticipation that by the action of Congress the law will be materially im- proved and strengthened. ? > ^^A^ ^^O^ ^^^^m Cj3 Cj3 CS3 N increase of 16.6 per cent, in the acreage for Connecticut Valley shade-gro\^Ti tobacco for the current year was announced March 25th by Secretary of Agriculture Henry A. Wallace, bringing the area from 4700 acres last year to 54^ acres, under the marketing agreement of the handlers of this type of tobacco in Connecticut, Massachusetts, New Hampshire and Vermont. This acreage, it was explained by J. B. Hutson of the Agricultural Adjust- ment Administration, with average yields, will produce slightly less than the amount consumed, thus reducing the carry-over. Pointing out that there are about 200 acres which are not covered by the marketing agreement, he said, an average yield w^ould give a crop of 5,771 ,000 pounds. It is estimated that the carry-over on July 1, next, will be 10,697,000 pounds which, with the estimated crop, would constitute a total supply of 16,46S,(KX) pounds, or 2.51 times the normal disappearance. This ratio of sup- ply to disappearance is the average which occurred from 1919 to 1930. JO PPOSITION to any provisions in recovery codes which would permit chain stores and mail order houses, large distributors of to- bacco products, to purchase goods at more favorable prices simply on account of their classifica- tion as such types of business, rather than on their volume of purchases, was voiced by wholesalers last month at hearings before the National Recovery Ad- ministration on the question of wholesale differentials. It was contended that the independent distributor is damaged by such discrimination when, after develop- ing a market, competition wholly out of balance with his service cuts into a few lines, leaving him the burden of service but without hope of a reasonable return. "A differential for the wholesaler is not only a proper but a very necessary means to enable him to continue his functions in such manner as to enable him to serve properly the interests of the retailers and in that way keep them in a position to supply consumer needs," it was asserted by E. T. Satchell of Allon- town. Pa. "Continuance of independent retail distribution is vital to the producer," he said. "The wholesaler, as an indispensable link between the producer and re- tailer, constitutes a factor upon which the existence of both producer and retailer depends.'* CJ3 Ct3 CS3 PPROVAL of a permanent code provision pro- hibiting the use of cigarettes as "loss leaders*' was asked of the National Recovery Adminis- tration March 25th by representatives of the tobacco distributors, who asked also that a similar pro- vision be written covering smoking and chewing to- bacco and snuff. Holding that the present temporary provision has effectively blocked cut-throat competitive jnethods and resulted in increased payrolls in many shops, members of the trade asserted that the use of loss leaders never has been and never will hv of benefit to the buying l)ublic. The burden of the argument was carried by Sieg- fried Hartman, representing the Retail Tobacco Deal- ers of America, Inc., who pointed out that one concern, using cigarettes as a loss leader, had sold $15(VXK),000 worth of them in one year and that lliis constituted only 1.3 per cent, of their sales for that pei iod. * While the loss leader has long been known in iho retail trade, the world-wide depression has served to accentuate the e%ils of the practice, he declared. {Continued on page 1^) Cigars and Cigarettes Up in February HE following comparative data of tax-paid products, indicated by the monthly sales of stamps, are issued by the Bureau. (Figures for February, 1935, are subject to revision until published in the annual report.) Products Cigars (large) : Class A No. Class B No. Class C No. Class D No. Class E No. — Fehruary — 1935 289,218,060 3,917,920 25,750,910 1,792,502 184,799 1934 261,955,230 1,828,450 33,175,868 2,035,355 219,177 Total 320,864,191 299,214,080 Cigars (small) Cigarettes (large) . Cigarettes (small) Snuff, mfd Tobacco, mfd No. 14,906,800 21,419,160 .No. 164,942 27,254,800 .No. 9,306,198,840 9,167,641,657 .lbs. 2,981,116 3,320,649 .lbs. 23,121,561 25,030,055 Tax-paid products from Puerto Rico (not included in above statement) were as follows : Products — February— Cigars (large) : 1935 1934 Class A No. 3,032,525 2,658,200 Class B No. 7,750 1,900 Class C No. 39,350 84,900 Total 3,079,625 2,745,0(X) C^igars (small) No. 200,000 Cigarettes (large) No. Cigarettes (small) ....No. 1(XJ,0(K) 250,0(X) 3(),(X)0 2(HMH>0 Tax-paid products from the Philippines (not in- cluded in above atatoment) were as follows : Products Cigars (large) : < Uass A No Class B No Class C No Class D No Class E No — Februarii — 19,680,515 53,210 3,400 300 * • • 9 ■ • 1934 20,229,085 2,180 16,380 ItKJ 5 Total Cigarettes (large) . Cigarettes (small) Tobacco, mfd 19,737,425 20,247,750 No. No. lbs. 187,500 9 200 123,im) Total Withdrawals for Previous Pebniaries 1920.... 593,832,200 1927.... 441,695,730 1921.... 496,724,482 1928. 1922.... 447,225,986 1929. 1923.... 507,266,094 1930 1924.... 498,796,313 1931 1925.... 451,562,278 1932 453,605,097 437,476,207 426,521,773 362,838,747 347,728,648 The Tobacco WorU 1926.... 451,204,147 1933.... 287,430,105 AprU t, 1935 Internal Revenue Collections for the Month of February — Fehruary — Source of Revenue 1935 1934 Cigars ■ $791,767.47 $776,217.37 Cigarettes 27,920,348.33 27,699,530.45 Snuff 536,600.88 597,716.88 Tobacco, chewing a n d smoking 4,162,010.99 4,505,409.96 Cigarette papers and tubes 89,279.09 67,532.82 Miscellaneous, relating to tobacco 126.92 234.49 Collections From Agricultural Adjustment Taxes and Tobacco Sales Tax Total from Month of July 1, 1934 Commodity February {Fiscal year 1935) Tobacco (tax effective October 1, 1933) : Processing tax .... . $2,797,508.59 $21,243,968.45 ImT)ort compensating taxes 19,845.99 163,345.88 Floor taxes 127,305.44 233,781.83 Total, tobacco.. $2,944,660.02 $21,641,096.16 Tobacco sale tax $870,676.55 $2,953,353.70 {Continued from Page 6) When a "price-floor" was gained for cigarettes and cigars, smoking tobacco became the cut-rater's football and the loss-leader's practitioner's bait. De- spite the extreme demoralized price situation created bv this practice, the actual dollar value of the retail turnover in standard branded tobacco products de- clined. This shrinkage in dollar value of turnover is supported by the fact that during the period of ruthless and predatory cut-rating, the pound consump- tion did not increase, but remained stagnant. Today, every retailer who has a sizeable volume of busines's on the standard brands of smoking tobacco is securing the volume at low cut prices and as the volume of sales in the brans gravitates to the sellers with lowest prices, more than 80 per cent, of the busi- ness being done on the standard brands of smoking tobacco is being done at cut-rate. The manufacturers have not gained any benefits from the cut-rating — neither have the farmers or labor— and certainly, the retailers who were compelled to bear the burden of demoralized cutting, lost materially. **RED TRAILS" CHANGE OLLOWING the broadcast of March 28th, the ''Red Trails" program, formerly heard on Thursdays at 8 :30 P. M. over a WJZ-NBC net- work, will be transferred to Tuesday night from 9 to 9:30 (E. S. T.). The number of stations on the N. B. C. network carrying the program has been increased from seventeen to thirty-nine. Beginnmg with the April 2d broadcast, **Red Trails" will be heard from coast to coast. The series is sponsored by the American Tobacco Co. /3ii/663 THE FRIEND A DEALER NEEDS IN A 15c TOBACCO No fine pipe mixture has ever enjoyed the instant success that Briggs has achieved. Wherever pipe fans gather, the talk today is of Briggs. Smokers of premium priced brands prefer it to their former expensive blends. Old time "15< tobacco" experts find in Briggs a sense of complete satisfaction that is new in their ex- perience. Dealers find in Briggs a friend they need be- cause its retail price is protected and full profit is assured. For proof ..ask your jobber which 15* tobacco has doubled and trebled in sales and his answer will be "Briggs Pipe Mixture." P. LORILLARD CO., INC. Esfabfished 1760 119 WIST 40TH STRUT • NIW YOKK CITY Tune in.. Briggs "Sports Review of tite Air" .. Featuring Thornton Fisher . . N.B.C. Red Network . . Saturday Evenings J TOBACCO TRADE ORGANIZATIONS TOBACCX) MERCHANTS ASSOC! ATIO.N -^ftl!^ OF UNITED STATES ^''^UjP JESSE A. BLOCH, Wheeling. W. Va President JUUUS UCHTENSTEIN. 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. HIRSrr, Philadelphia. Pa Vice-President ASA LEMLEIN, New York. N. Y Treasarer CHARLES DUSHKIND, New York. N. Y Oiansel and Managing Director Headquarterh, Ml Madison Ave., New York City RETAIL TOBACCO DEALERS OF AMERICA, INC. WILLIAM A. HOLLINGSWORTH, 23J Broadway New York, H. Y President CLIFFORD N. DAWSON, Buffalo, N. Y Executive Vice President JAMES C. THOMPSON, Chicago, III Treasurer ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS iOHN H. DUYS. Kew York City President CIUrON RANCK, Lancaster, Pa First Vice-President D. EMIL KLEIN. New York City Second Vice-President L^ SAMUELS. New York City SecreUryTreasurer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN. 110 Grumman Ave.. Newark. N. J President ALBERT FREEMAN, New York, K. Y First Vice-President IRVEN M. MOSS, Trenton, N. J Second Vice-President A. STERNBERG, Newark, N. J SecrcUry RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA MORRIS LEVITONE ..President SAMUEL MAGID, 2001 N. Mervine St., Philadelphia. Pa Secretary THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS, INC. E. ASBURY DAVIS. Baltimore, Md Preside* JOSEPH KOLODNY, a» Fifth Ave., New York, N. Y Secretary GEO. B. SCRAMBUNG, Oeveland, Ohio Treasurer UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION JOHN F. BROWN President HERMAN H. YAFFE. 301 Fox Building, Philadelphia. Pa Secretary U REALLOCATION OF BUDGET HK Code Authority for tlio Wholesale Tobacco Trade lias made applieation to the National Industrial Recovery Board for the reallocation of certain l)ud<;etarv funds. The budfi:et for the Wholesale Tobacco Trade was conditionally ap- proved by the National Recovery Administration on October 20, IJKU. The total amount of the budget for the ])eriod from June {>, 19.'?4, to and including June 15, UKJ.'), was $410,150. Among the various budgetary items was a reserve for the Code Authority's ])ropor- tionate share of the expenses of the National Tobacco Council, Inc., amounting to $.'J0,OO(). Another item was the estimated expenses of 250 local agencies of the Code Authority which amounted to $125,000. Since October 20, IJKU, a budget for the National Tobacco Council, Inc., has been approved which deter- mines the iJrojmrtionate share of the expenses thereof applicable to the Wholesale Tobacco Trade to be $2.'i,.*>00. Actual oi)erations of the Code Authority since this date have shown the amount estimated for local code auencies to be in excess of the amount actuallv re«piired. Furthermore, it is indicated that legal ex- penses will be in excess of the amount a])proved. Consequently, the Code Authority has requested that they be ])ermitted to set up a reserve for legal expenses amounting to $10,000, $5000 of which will be allocated from the reserve i)rovided for the expenses of the National Tobacco (^ouiicil. Inc., and $5000 from the amount ])rovided for local agencies of the (^ode Authority. Any criticisms of, objections to, or suggestions con- cerning the reallocation of budgetary funds must be submitted to Deputy Administrator Irwin S. Moise, Room 530, Barr Building, Washington, D. C., ])rior to Wednesday, April 10, 1{)35, and the National Industrial Recovery Board may approve said reallocation of budgetary funds in its present form and or in such form, substance, wording and or scope as it may be re- vi.sed on the basis of criticisms, objections, or sugges- tions submitted and supporting facts received, or other considerations properly before the National Industrial Recovery Board. DON'T MISS fin in DEFINITIONS OF TERMS HE National Industrial Recovery Board has issued an inter|)retation of the terms used in various code provisions governing terms of employment of learners and apprentices. De- the words "day," *'wcek.s," "months," or "years" as used in codes to limit the ])eriod during which an employee may be classe«l as a learner or ap- prentice, the Board ruled: "The words ipioted mean the respective calendar |K»riods, with the addition of any time lost from the normal full-time work periods of the plant in which the <*mployee is working, as, for example, by reason of ces- sation of plant operation or inability or unwillingness of the employee to work." This interpretation was issuod to promote more uniform ajiplication of code provisions regarding learners and apprentices in all iiiteresteil industri<'s. Read The Tobacco World AND RADIO'S SENSATJONAl LAUGH TEAM WITH JOSEF BONIME'S ORCHESTRA AND GUEST STARS Don't miss the sales they're buildinq fo PICK and PAT and Baltimore WFBR Boston ^£1L Buffalo S-^An Chicago WMAQ Cincinnati WSAI CleveUnd WTAM Dayton WHIG Denver WEBC Des Moines KOA Betroit WOC-WHO Dulttth WWJ Hartford WTIC iONIME'S ORCHESTRA are pr«s«nt«d wMkly ov«r th« following Friday Saturday Friday Friday Friday Friday Friday Monday Friday Friday Tuesday Friday Kansas City WDAF Los Anceles KNX Madison WIBA Milwaukee WTMJ Hew York WEAF Omaha WOW Philadelphia KYW Pittsburgh WCAE Portland, Me. WCSH Portland. Ore. KEX Saturday Tuesday Wednesday Friday Friday Friday Friday Friday Friday Wednesday SEE YOUR UOCAL EVENMC nOCKAH USTINCS Providence WJAR Richmond WRVA St. Louis KSD St. Paul KSTP Salt Lake City KDYL San Francisco KGO SchenecUdy WGY Seattle KJR Spokane KGA Washington WRC Worcester WTAG stations : Friday Tuesday Friday Monday Monday Friday Friday Tuesday Monday Friday Friday DILL'S BEST AND II Cigars Up 105 Millions in 8 Months Cigars: Class A-- Unitod States Puerto Hieo . Pliilippine Is. Total Class B— United States Puerto Rico . Phili])pine Is. First S Mas. Fiscal Yr. 1935 2,687,948,095 + 39,227,030 -h i:?5,:U6,985 — — Decrease -\- I tic tease Qiiatititt/ 140,007,395 2,035,050 25,170,610 . 2,862,522,110 + 116,871,835 43,179,916 -h 1,327,000 — 407,200 + 21,328,431 823,100 298,936 Total 44,914,116 + 20,804,267 dass ( — United States T'uerto Kico . Philippine Is. Total Class D— United States Puerto Rico . Philippine Is. 363,920,672 511,350 177,388 28,281,808 223,08(» 9,754 364,609,410 — 28,514,642 26,880,173 — 3,208,367 1,500 -h '^^^ 2,927 -h 87 < Total Class K— United States . . . I*uerto Rico .... Philippine Is. ... Total Total All Classes: United States . . . Puerto Rico Philippine Is. ... 26,884,600 - 3.206,990 3,066,774 — 776,872 ■1,745 " 811 3,068,519 — 777,683 3,124,995,630 + 41,066,880 + 135,936,245 — Grand Total.. 3,301,998,755 129,068,779 989,370 24,881,362 105,176,787 Little Cij;ars: United States Puerto Rico . Philippine Is. Total I'igarettes: United States Puerto Rico . Philippine Is. 132,339,053 — 1,640,000 — 16,800 + 133,995,8.53 18,069,521 390,000 16,800 18,442,721 83,757,5.53,086 + 9,052,:U1,524 2,661,570 — 374,4.30 917,190 -h 25,940 Total 83,761,131,846 -f 9,051,993,034 Large Cigarettes: United States Puerto Rico . Philippine Is. Total 1,. 599,443 236,000 100 1,835,543 35,247,2.")7 409,(KJ0 6,300 35,662,557 Snuff (lbs.) : All United States Tobacco, nil'd. (lbs.): United States . . . Philippine Is. . . . Total 23,9.50,600 — 607,677 200,128,998 15 3,006,517 56 200,129,013 — 3,006,573 {Continued from Page 11) Blears that such a provision would be unenforce- able, expressed by NRA officials when it was first Droposed, have been proven to be untounded, it was asserted by William A. Hollingsworth, chairman of the code authority. Compliance with the temporary pro- vision, he said, has been ** practically perfect Instead of meeting the restriction w^th resent- ment Uv. Hollingsworth continued, the general public has made little or no complaint .and. sales have in- creased, 1934 being the best year m cigarette histor> with sales in November showing an increase of 42 per cent, over the corresponding month m 19Jd. t3 The Tobacco World April I. 193$ Eaiablithed 1886 "BEST OF THE BEST" ""-"■-' *•' A. SANTAELLA & CO. Office, 1181 Broadway, N«w York City FACTORIES: Tampa and Kep Wtst. Florida OUB HIOH-OBADE NON-EVAPOKATING CIGAR FLAVORS Make tobacco meUow and aotooth la characlat and Impart a moat palatable flavor FUYORS FOR SMOKING ui CHEWING TOBACCO Wrtte for Llat of Flavora for Special Brands BKTUN. ABOMATIZBI. BOX PLAVOBS. PASTE SWBBTBNBIS FRIES a BRO., 02 Reade Street. New York POSITION WANTBD CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large following. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON Automatic Machines, wants a position. Also instructs beginnov. Address Box No. 558, "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to restaurants and cafe trade. Would like to specialize in 5 and 10 cent cigars under my own brand. Manufacturers communicate with me in reference to worth-while line. Hugh Donowick, 242 Milnor Ave., Lackawanna, N. Y. FOR RENT 30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A 3-story and concreted basement building adjacent to P. R. R. freight station in York, Pa. Building of sufficient strength to accom- modate at least 50 cigar-making machines per floor. See A. Kauil- man & Bro., York, Pa., for inspection and details. HAVANA CIGARS BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- ^r>." Specially those Havana blended, "Good to the last Puff," manufactured by A. Ramirez & Co.. Post Office Box 1168, Tampa, na. Write them for particulars today. Tobacco Merchants' Association Registration Bureau, 'n^w ^kTa^ Schedule of Eates for Trade-Hark Services Effective April 1, 1916. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Dnplicnfp Oprtifipat**. 2.00 Note A— An allowance of $2 will be made to menibers «i( the Tobacco Ifcr- chanta' Aatociation on each regiitration. Note B— If a report on a search of a title necesaitatea the reportinc of mort than ten (10) titles, but leaa than twenty-one (21). an additional charic of Om Dollar ($1.00) will be made. If it necessitates the reportinc of more than twenty (20) titles, but less than thirty-one (91), an additional chart* of Two Dollars ($2.00) will be made and so an additional chairc of One Dollar ($1.00) will b« made for erery ten (10) additional titles necessarily reported. REGISTRATIONS LITTLE "PHILLIES":— 46,427. For cigars, cigarettes aiul smok- ing tobacco. Bayuk Cigars Inc.. Philadelphia, Pa.. March 12. 1935. PAUL BUNYAN:— 46,428. For cigars. Fd. J. Hoflfniann. Brainerd, Minn., I'ebruary 11, 1935. TRANSFERS NEW ERA: — 46,425. For cigars only. Registered by Consolidated Litho. Corp., Brooklyn, N. Y., November 16, 1934. (Certificate is- .sued upon presentation made to us that the trade-mark or trade name therein specified, though not heretofore registered in any of our Affiliated Bureaus, has been transferred in 1915 by L. New- burger & Bro., Cincinnati, Ohio, to Jos. Schwartz, Cleveland, Ohio, and re-transferred to Consolidated Litho. Corp., Brooklvn. N. Y., March 4. 1935.) DONA MIA:— 24,206 (U. S. Tobacco Journal). I'or cigars, ciga- rettes, cheroots and tobacco. Registered .^pril 14, 1908, by the American Litho. Co., New York, N. Y. Through mesne transfers ac(|uired by the .\merican Bo.x Supply Co.. Detroit, Mich., and re- transferred to the Mazer-Cressnian Cigar Co., Detroit, Mich., March 6, 1935. DESCHLER MONOGRAM :— 46,379 (Tobacco Merchants Associa- tion). For cigars. Registered October 9, 1934. by Kiefer-Stewart Co., Indianapolis. Ind. Transferred to The S. Frieder & Sons Co., Cincinnati. Ohio, March 12, 1935. HAVANA CODE:— 29,823 (Tobacco World). For cigars, cigarettes, chewing and smoking tobacco. Registered February 21. 1914, by The Moehle Litho. Co., Brooklyn. N. Y. Transferred to Central Cigar Box Co., St. Louis, Mo., and re-transferred to Jos. Menendez Cigar Co.. St. Louis, Mo., June 14. 1933. ROBERT VERNON:— 25,023 (Trade-Mark Record). For cigar*. Registered July 2, 1901, by George Schlegel, New York, N. Y. Transferred to A. C. Henschel & Co.. Chicago. III., and re-trans- ferred to Benjamin Kane, Philadelphia, Pa., March 23, 1935. UNION SCOUT:— 23,903 (Tobacco World). For cigars, cigarettes, chewing and smoking tobacco. Registered February 13, 1912, by McHie Scotten Tobacco Co., Detroit, Mich. Transferred by H. Rippen. Perth Amboy, N. J., successors to the original registrant to Clark & Scott Co.. Inc.. .Scranton. Pa.. March 8, 1935. Send Two Dollars, with the coupon bek>w to The Tobacco World, 236 Chestnut St., PhiU., Pa., and g^ your copy twice a month for a year. Name Street No.™— P. O- JScate APRIL 15, 1935 LIBRARY '^ECEIVEB APR 1 9 1935 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, m Lima Ohio Detroit, Mich, A Natioi^Widc Ser%4c.^ Wheeling, W. Va. I I iiiiiiiiiiimii UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. WE ASKED OUTDOOR PEOPLE Is this fact important to \bu ? i**<>f^' ff THE TOBACCO WORLD Vol 55 APRIL 15. 1935 No. 8 OBACCO merchants everywhere will be inter- ested in learning that their brethren in all lines virtually sounded the death knell of a pro- posed general sales tax in Pennsylvania by descending on the State Capitol in a group and voicing their protests These twenty-seven representative busi- ness men from Philadelphia, Pittsburgh,and other parts of the State opposed enactment of a sales tax, not only because of its tendency to ''sock the consumer" but also because it would result in a loss of business, which in turn might necessitate reduction of employment. George H. Johnson, president of Lit Brothers, said: *'No business concern could stand an increase in ( harges and reduction in business without being forced to rediK't its employees and thus increase unemploy- ment." Anthony II. Geuting, president of the Philadel- phia Merchants Association, declared: 'Tietailers were not consulted on the retail sales tax which the Chamber of Commerce recommended. We are going to speak for the retailers in the future, independently of the ( 'hamber of Commerce. We are willing to do our share as far as paying taxes is concerned, but we believe that a sales tax will be detrimental to the State and will !i(.t produce revenue. A man who wants to make a worthwhile purchase will simply cross the river and ave the tax, That's all there is to it. I do not think a sales tax is a constructive tax. We know that the State needs the money and we are going to help to get it. W'e just don't think a sales tax is the way to go about it." Governor Earle congratulated the merchants on their stand and emphasized the unfair charges the levy would impose on the average working man. HAT price-cutting is not entirely unknown on the tight little isle is evidenced in a report, in the same issue of English Tobacco, of a meet- ing of the Executive Committee of the North- vxn Tobacco Trade Association (the Raleigh Club sec- tion of the N. U. R. T.). Mr. Briggs said that since the last meeting three of the largest price-cutters in Bradford had sought registration; and there were now ..nly two such -cutters" left. That was without any special effort on the part of the branch. One of the ** cutters" told him that cut-price cigarettes were now too expensive to buy, and they might just as weU seU a few at the proper price. The Chairman : That is very satisfactory. The Secretary : We had quite a lot of correspond- ence some time ago about a man who held a corporation tenancy, but he is now selling at the correct prices. (Hear, hear.) j|OBACCO, the English publication, comments that the idea of doing something as slowly as possible seems, perhaps, strange in these (lays of streamline and speed records. Yet such was tile intention of twenty-four smokers who en- tered u pipe smoking competition that was recently held at the Royal Opera House, Covent Garden. The choice of the arena sugg(»sts that smoking is an art and not a vice. We have heard of contests in which com- petitors endeavored to show how much they eat, but this was a refined encounter, in which they showed how little they could smoke and how long the little lasted. The prize-wnnner, a barrister, made his twelfth of an ounce of tobacco last for an hour and a quarter. But then the law's capacity for delay is notorious. The problem of making a little go a long way is one that has beset many of us during recent years, but if all smokers followed this example tobacco prospects would indeed be dismal. Possibly the contemplation of the thirty-mile per hour limit aided them in putting a brake on speedy smoking. N these days, writes Tom Daly, in his Rhymes and Rippfes column in the Philadelphia Eye- uinfj Bullet in, when Congress is investigating the top-heavy salaries and bonuses of captains of industrv, let us lay a rosy wreath upon the grave of W. V. Axton, president of a big tobacco concern of Louisville, who has just died. In his obituary we read : *'When after a particularly prosperous year, leading stockholders proposed that his salary of $10,000 should be increased, he refused, maintaining that too much is being taken out of business by executives and too little is going to producers and consumers." And, adds Tom, it is interesting to note that the wife of this prince of good fellows was Cinderella D. Whittmghill Axton. ON'T Throw Away Your Old Cigar Boxes", reads the framed advice in a new^spaper clip- pinf thought fullv sent to us by our old friend, Chm-lie Althaus,*of Nic. Althaus Co., 037-641 East Seventeenth Street, New York City. The item .^oes on to sav that many of the finest gardens on Long Ishmd had their beginnings in humble cigar boxes. "Save vour empties, vou'll need them", is the advice ot the paper, which states that everybody can grow flow- ers, there being no secret, no magic formula, no mystery about it. For flower-growing purposes, Charlie might add, be sure the cigar boxes are made of wood, cedar or boite nature preferred. Wood F. Axton Passes R. T. D. A. Urges N. R. A. Extension OOD F. AXTOX, presidoiit oi' The Axton- Fishor T()l)aeH'() Co., of Loiiisvillo, Ky., and a lovei- of thoroughhi-ed horses, died at his home "WiKlwood" on April 4th as a result of ill- ness from a heart attaek, from whieh he had been suf- fering- sinee his return in Fel)ruary from London, Eng- land, where he went on a business trip. llo was born on a farm in Ohio (\jimty, Ky., and started his business career as a salesman for a whole- sale grocery company of Owensboro. lie later trans- ferred his activities to tobacco manufacture. In 1902 he moved to Louisville and formed a partnership with George 11. Fisher. During the depression, the concei'n became one ot^ the largest factories in the country as a result of concentrating on low-priced cigarettes. Axton became known for his work for his employees and symi)athy for In IDo.'l at a celebration of completion of a t^250,000 addition to the factorv here, (lov. Kuby LalToon l)raised Mr. Axton, saving In- had "(hme more tor the CMtv of Louisville an«l the state (luring these strenuous times than any other one citizen. On that occasion, Axton made known his belief that salaries of execulivp- are usuallv too large and stated that he had alwavs limited his t(» $ltMMM) a year. His company was one of the few concern^ tliat expanded and inade money during the dei)ression years and his ])roiits as a stockholder were large. A love for tine st(K'k showed itself alter he had accumulated a tortune, anullMoose ticket. He was 'a leader in the Community diest, a directtn- of the Board of Trade, ])rrsi«hMit of the Tax- pavers Leauue of Kentuckv. memb.-r of the Masonic ()rder, the Shrine, Odd Fellows, Klks Fnit<'d Commer- cial Traveler^' Prot<'ctive Association. He also was a member of the First Methodist Church of Owensboro. Axton-Fisher manufacture many tobacco products, 8i»ud and Twenty (hand cigarettes being the leaders. Smoking and cigarette tobaccos are, Old Hill Side, Old Lovaltv, Show Boat and Himyar. Chewing tobacco brands are. White Mule, Booster Twist, Axton 's Natu- ral Leaf, Pride of Dixie, Eight-Hour Union, Wage Scale, etc. Clown cigarettes, which have been made l)y the company for many years, are old favorites throughout the entire Ohio Valley. Xear the close of 1982 it was apparent to company (ifficials that another new plant would have to be added to keep up with the sales of Spud and Twenty (Jrand. For manv months Axton-Fisher could not ineet the de- mand for the ten-cent cigarettes and distribution was of necessity limited in many sales territories. Meanwhile, ])lans were made to build a big addi- tion to the factory and this new seven-story building, equii>iH'd with new machinery added 11U,U0() square feet of s])ace. The new Iniilding also permits the gen- eral offices to be ex])anded to cope with present requin-- ments. Funeral services were conducted at the Crescent Hill Metliodist Church, Louisville, Saturday morning, Ai»rii mh, burial at Owensboro, Ky. Active ])all bearers were Ray Ellis. Xiw Albany; R. M. Barker, Hyman Friedberg, (J. O. Tuck, F. H. Cal- lahan, and X. B. Wigginton. Honoi arv pall bearers included : Ben E. Xiles, Hen- derson: Jam'es Hemphill, Kent (\ Childs and David McDougall, Chicago; Maurice H. Thatcher, Washing- ton; cTev Woodson, Owensboro; Otis Kenyon, Rosser J Smith! 11. E. Scheuermann, and Arthur Eisig, New York; William Reed, Richmond, Vt.; Ralph lUigbee, and Emil Harms, St. Louis; C. A. Just, Detroit ; Henry Heiman, Trent«m, Mo.; W. L. Petty and Janies C. Stone, Lexington; Letton Vimont, Pans, Ky. ; E. \N . Harris, Indianapolis; Wade Hampton and O. G. \V ed- ding, Goshen, Ky.. and a group of prominent LouisvilU' citizens. Mr. Axton 's wife, Mrs. Cinderella D. Whittinghill Axton, died in UK)1. Three brothers, E. D., l^)bert L.. ami I.T. Axton, of Lfuiisville, and threee sisters, Mis> Annie Lois Axton and Mrs. (Iiester Bishop, ot \Vin- rhester, and >riss Marv Axton, of Louisville, survive. Cigarette Mark-ups Extended I HE Xational Industrial Recovery Board on March 2inh extended until April 30th the emer- gencv minimum mark-ups on cigarettes estab- lished under the wholesale and retail tobacco trade codes. The mark-ups were required by an Ad- ministrative Order of July 12, 1934, recognizing an emergency situation in cigarette distrilnition due to the use ol' cigarettes as loss leaders. The original emer gency orders have been extended and amended from t'ime'to time, the latest extension being to March 30th. Proposals submitted by the code authorities and individual dealers in each branch of the trade for code amendments to n-place the emergency orders were dis- cussed at public hearings March 25th and March 26th. The I'Xtension continues the original emergency orders until April 30th, "pending the further order of the Hoanl canceling or amending this order upon com- pletion of a study of the evidence atlduced at said pub lie hearing or otherwise." Minimum mark-ups over the manufacturers net list price are prescribed for each stage of cigarette dis- tribution jobber, sub-jobber and retailer. They are de- signed to presene a nomml retail price of two pack- ages for twentv-ftve cents for the moat popular brands and ten cents a package for the lower-priced brands. Thf Tobacco H'orU ONTINUATION of the Retail Tobacco Dealers' Code rests upon N. R. A.'s extension. Oppo- nents of N. R. A. have been carrying on effec- tive subtle propaganda against the Act both in Congress and in the daily press. Many of these oppo- nents claim they represent the little man. Do they represent you? That question is asked in a circular issued by the Retail Tobacco Dealers of America, The lobbies of powerful interests are working over- time to prevent renewal of the N. R. A. These inter- ests have used the name of small enterprise to their ad- vantage and with impunity, because small enterprise has failed to express its own views. As a result of the little man's inertia and silence, Congress is misinformed — undecided — and seriously divided on the question of extending N. R. A. You can correct these existing mistaken opinions in Congress quickly by immediately writing the two Senators from your State and your Congressman giv- ing them your views concerning the extension of N. R. A. If you desire the continuation of N. R. A., tell Pres- ident Roosevelt, your Senators and Congressman how the fair trade practices in your Code have helped you, how the Code has protected you against the vicious competition of large chain interests, how the Code has shielded you against the coercive practices of powerful manufacturing combines, how the welfare of your busi- ness and your family and your employees depends upon the continuance of fair trade practices — your Code-— and N. R. A. Request immediate consideration of legis- lation to renew N. R. A., as the Act expires on June 16th. Join with your brother dealers in other states to impress upon Congress that your whole economic exist- ence is dependent upon the renewal of N. R. A. For if N. R. A. is not continued. Codes of Fair Competition will cease to exist and as surely as night follows day, the hungry loss-leader practitioners and the ruthless cut-rate pirates will descend upon the retail tobacco trade w4th a vengeance and hundreds of thousands of little tobacco dealers will again be helpless prey for their cut-throat tactics and predatory practices. Amendments to Code Proposed T the meeting of the National Code Authority for the Retail Tobacco Trade on Monday, April 1st, a resolution was passed which will enable a public hearing to be held on an amendment to the Cigar Merchandising Plan, liberalizing dis- counts on multiple sales and box sales to the consumer. The Modified Cigar Merchandising Plan will retain its present framework, that is, manufacturers filing the unit price as heretofore. The proposed discounts by retailers to the consumer will be as foUow^s: (A) On sales amounting to 25 cents or more, a con- sumers' discount may be allowed of not more than 10 per cent, from the retail price, unless the cigar manu- facturer shall record a maximum consumers' discount of less than 10 per cent. (B) On box sales of not less than twenty-five ci- gars, a consumers' discount of not more than 12% per cent, from the unit retail price may be allowed unless the cigar manufacturer shall record discounts of less than 12^^ per cent, and mark the container price thereon. (C) In the case of sales at retail of 250 or more, a consumers' discount of not more than 15 per cent, from the retail price may be allowed, unless the manufac- turer files discounts of less than 15 per cent, and the price is so marked on the box. This will establish the nunimum price of cigars at the unit price filed by the manufacturer less the dis- counts allowable to the consumer as set forth above, and in calculating the minimum price where a fraction of a cent appears, all fractions shall be raised to the next even cent. Aside from this liberalizing of discounts to the con- sumer, all other provisions of the Cigar Merchandising Plan aftecting the retailer remain the same. The mini- mum price cannot be reduced by subterfuge, giving of free deals, coupons, or unusual service. The Code Authority in approving the amendments to the plan for hearing,' held certain reservations. Al- though the amendments were approved for hearing by a majoritv of the Code Authority, William A. Hollings- worth, Arthur S. Meyer and Fred Griffiths did not vote for the amendments. The public hearing will no doubt be scheduled shortly. The amendments will probably be forwarded to the Administrator within the next day or two with recommendations for the hearing from all three Code Authorities. Retail Violations Charged ILLS of complaint were filed on starch 27, 1935, in tlic United States District Courts for the Eastern and Western District of Kentucky against Esther H. Feuss, doing business as (^ovington Tobacco Co., of Covington, and Pete Mober- ley, doing business as Postal Tobacco Co., Owensboro, for violations of the minimum price provisions of the Retail Tobacco Trade Code. AprU IS, Ip35 The cases were prepared by MacSwinford, United States Attorney for the Eastern District of Kentucky, who is handling the Covington Tobacco Company case, and by Thomas J. Sparks, United States Attorney for the Western District, who is handling the Postal To- bacco Company case. Robert Strange, Regional Litiga- tion Attorney, N. R. A., is assisting the district attor- neys. HIbADEIii>MIA. BAYUK BRIEFS D. SOYSTER, Altoona-Johnstown territorial manager, is keeping Pliillies and other Bayuk brands prominently before consumers with effective displays and energetic missionary work. He reports continued progress of the brands in those sectx)rs . . . B. W. Buraside recently returned to headquarters and reported that Phillies are main- taining their popularity and sales in the Pittsburgh and West Virginia areas, where he is territorial mana- ger .. . F. S. Brumsey is assisting the Hoffman Cigar Co. in promoting greater distribution and sales of Ha- vana Ribbons in Norfolk, Va. . . . H. Ferbstein, Akron, 0., is forging ahead in the distribution of Phillies, hav- ing been recently assisted by C. P. Eccleston, Bayuk salesman . . . Jesse Geithman Co. is doing a nice job in the Rockford, 111., territory. With the aid of C. M. Bristow, Bayuk salesman, a substantial increase in placements and effective displays was recently accom- plished. LA AZORA'S NEW OAMPAiaN AVE you been noticing the Reason Why Quar- tette in the new series of La Azora advertise- ments in the newspapers. They are: You'll like the Size. You'll like the Shape. You'll like the Taste. You'll like the Price. They appear as the musical outpourings of the instruments of a four- piece band ; the signs on a series of semaphores ; the captions on the balls juggled by performing seals; the flags in a parade; darts flying straight to the mark ot smoking satisfaction; the sky-writing of aeroplanes. Very effective, we calls it. The series makes a fine com- panion piece to the El Producto campaign which also takes advantage of the value of repetition m its new presentation of the story of shapes and sizes. Abe Berkowitz, Eastern Representative for the Christian Peper Tobacco Company, of St. Louis, Mo., was in town last week visiting jobbers and retailers. The Christian Peper Tobacco Company is one of the best known manufacturers of high-grade smoking to- bacco, cigarettes, etc., in the country, and Mr. Berko- witz reports business highly satisfactory. Trade Notes Yahn & ]^IcDonnell report a lively increased de- mand for Briggs Mixture, the high-grade smoking mix- ture, produced by the P. Lorillard Company. Another brand that is receiving popular acclaim is London Dock, a high-grade pipe mixture being mark- eted by John Middleton, 1011 Walnut Street. John Wagner & Sons, Dock Street, distributors, report business showing a definite and steady increase on their brands, with the Medal of Honor showing a particularly good increase in demand recently. A. & B. Cigarillos, retailing at five cents for a package of two, continues to enjoy a good demand, to- gether with the As Y^ou Like It brand of Yahn & Mc- Donnell. Peter F. Murphy Co., Sixth and Cherry Streets, is now distributing Cremo cigars and doing a character- istically good job. This popular brand, as reported elsewhere in this issue, has been reduced from 5 cents to its former price of three for 10 cents. Herman Abrams, representing the Medalist fac- torv, has just returned from a visit in Pittsburgh terri- tory where he secured a goodly number of accounts, thus increasing the distribution and sale of his brand in that territory. The Medalist brand is also showing increased activitv in this market. One new brand in Philadelphia that is being eagerly taken up by smokers of high-grade pipe to- baccos, is Crosby Square, recently introduced here by Yahn & McDonnell. It is a really mild and satisfying mixture and is in a particularly attractive package of gray with dark brown lettering, retailing at fifteen cents for the pocket package; sixty-five cents for the eight-ounce vacuum tin, and 1.25 for the sixteen-ounce vacuum tin, and a twenty-five cent package comprising a silk pouch. The Tobacco World 8,271 men and women visited the Chesterfield factories during the past year A man who visited a Chesterfield factory recently, said: ''Now that I have seen Chesterfields made, I understand better than ever why people say Chester- fields are milder and have a better taste. '' © I9i5, LicetTT at Mybm Tobacco Co. If you too could viat our fectories you could see the clean, airy surroundings; the employees in their spotless uniforms, and the modem ciga- rette making machinery. You could notice how carefully each Chest- erfield cigarette is inspected and see also how Chesterfields are practically untouched by human hands. Whenever you happen to be in Richmond, Va., Durham, N. C, or San Francisco, California, we invite you to stop at the Liggett & Myers plants and see how Chesterfields are made. April IS, 1935 DON'T MISS AND RADIOS SENSATIONAL LAUGH TtAM WITH JOSEF BONIME S ORCHESTRA AND GUEST STARS Don't miss the sates they're building for PICK and PAT and Baltimore Boston Buffalo Chicago Cincinnati Cleveland Dayton Denver Des Moines Detroit Duluth Hartford WFBR WEEI WBEIf WMAQ WSAI WTAM WHIO KOA WOC-WHO WWJ WEBC WTIC BONIME'S Friday Saturday Friday Friday Friday Friday Friday Monday Friday Friday Tuesday Friday ORCHESTRA ar« pr«s«nt«d w*«lcly ov«r th« following stations: Providence WJAR Friday Richmond WRVA Tuesday St. Louis KSD Friday St. Paul KSTP Monday Salt Lake City KDYL Monday Saa Francisco KGO Friday Schenectady WGY Friday Seattle KJR Tuesday Spokane KGA Monday Washington WRC Friday Worcester WTAG Friday Kansas City Los Angeles Madison Milwaukee New York Omaha Philadelphia Pittsburgh Portland, Me Portland, Ore. KEX WDAF Saturday KNX Tuesday WIBA Wednesday WTMJ Friday WEAF Friday WOW Friday KYW Friday WCAE Friday WCSH Friday KEX Wednesday SEE YOUl LOCAUEVEMNCTROaAH USTWCS DILL'S BEST AND TiM Opening of Sumatra Inscription AYUK CIGARS, INC., Webster Eisenlohr, Inc., Waitt & Bond, Inc., Arthur Bornholdt, Inc., 11. Duvs & Co., and D. Druex were the impor- tant buyers of Sumatra at the opening of the spring inscription in Amsterdam, Holland. They bought fifteen hundred bales in a firm market. In a review of the 1933 tobacco crop of Sumatra, sales of which closed at the middle of November, 1934, in the Netherland markets, American Vice Consul Wm. D. Thome, Medan, states that the results of November sales, although less satisfactory than those of the ear- lier auctions, were sufficiently good to justify optimism in the industry. ... As made public by the Tobacco Division, Depart- ment of Commerce, the review further states that the sales of the entire crop, and the proceeds, were con- sidered excellent, compared with previous years, al- though there was a decrease in the actual amount sold. Sales of the 1932 crop amounted to 140,339 bales, and of the 1933 crop 133,601 bales. The 1932 sales included 9382 bales produced by four estates which did not pro- duce in 1933. Deducting non-producers in 1933, sales of 133,601 bales may be compared with 130,957 bales m 1932, for which the proceeds amounted to Fl. 25,630,000, compared with 1933 proceeds of Fl. 28,500,000. Nearlv all of the producing companies were able to reduce costs of production in 1933, in most cases by nearly 30 per cent. One producer estimates a reduc- tion from 1932 calculated cost price of 156 cents per pound to 118 cents, another from 143 to 95, and a third from 171 to 127. The three mentioned companies pro- duced 109,043 bales in 1932 and 109,851 bales in 1933. It is said that the three companies showed a loss of Fl. 4,752,000 in the 1932 crop. Only one is faced with an estimated loss (Fl. 300,000) in the 1933 crop, while the other two have an estimated profit of Fl. 4,300,000. One of the smaller companies, which concentrates on producing a very high quality wrapper tobacco, was able to reduce costs of production, and shows an esti- mated profit of Fl. 1,000,000 from the 1933 crop, com- pared with a loss of Fl. 666,000 in the crop of 1932. Local opinion indicates that payments of dividends to shareholders by producing companies may be few; however, there are many factors to be considered be- fore a definite statement as to di\ndends may be niade, and local opinion may be proven wrong when the mdi- viduid figures are made public. It may be said, how- ever, that the general financial position of the tobacco industry- in North Sumatra, after five years of losses, has now improved. The 1934 crop of Deli tobacco is reported to be equal in quality to that of 1933, and high hopes are held for a successful sales season in 1935. There are still, however, difficulties to be overcome in this direction, difficulties which appeared to a worrying degree during 1934. Probably the chief of these, from the point of view of the sellers, is the likelihood of continued ob- struction by Germany in the matter of payments. On the other hand, the tobacco manufacturing industry in Germany is a relatively important one, so that tobacco must be imported to keep some 100,000 or more persons in employment. It is believed that some agreement re- specting the purchase of Netherland tobacco by Ger- man importers will be reached. There is also a possi- bilitv, according to reports reaching Medan, that the United States will be a more important purchaser in 1935, and planters here are naturally hoping that such will be the case. Two developments with direct bearing on the pros- perity of the Deli tobacco industry have recently taken place', one concerning the shipping of the tobacco to the Netherlands and one concerning a new market. In previous veara, a certain portion of the crop of each estate, being below the standard of quality expected of Deli wrapper, was burned. It was felt that the in- dustry as a whole benefited more from the mainte- nance of quality than it lost because of the destruction of a small part of the crop. However, with the develop- ment of a tobacco-manufacturing industry in Java and China, it has been discovered that a market exists m those places for at least some of the rejected tobacco, which would ordinarilv be burned. During 1934, there- fore, 4(XK) to 5000 bales of inferior Deli tobacco were sold in Java and China, where a lower grade can be profitablv used. It is reported in Medan that this amount was sold for about 100,000 florins, a pnce much less than the cost of production. However, the sum received covered the costs of packing and shipping, with an appreciable balance, a balance which in former years was absent. It is understood that the remnant tobacco is sold on behalf of the industry as a whole, the quantitv to be sold being divided among the com- panies in proportion to the amount of other tobacco shipped to the auctions. Th* Tobaeeo WorU HANDSOME NEW PREMIUMS/.r GROWING ARMY ./KGDL^w RALEIGH FANS SURE-FIRE WAY to turn the occasional custonrjcr into a steady and profitable friend: Call his attention to the coupon packed with Kools and Raleighs. And show him our new booklet "Beautiful Premiums." Sales on these B Bt W brands are moving ahead so rapidly we've had to add half-a- dozen swell new premiums to the list so smokers can have a still wider choice. And— don't forget there are two extra coupons in each carton for you. BROWN te WILLIAMSON TOBACCO CORP. LOUISVILLB, KY. LADISS' TRAVELING CASE: Smart bUck k«th« ^^--f** •Ilk ino»« liacd. Slide faMcocr. complett ftttinai, •• »U"y<«^:A° green, ivory or bimck wttll lU^nt UllWHiimi »» <"^ TRAY BAR: Bfwttful mM ■Mlin—wy or v«te«t wt^ el DBTKCTO SCAUt piatfom. BMttjf r««ldW. WnBr for Av« y«wa. BRIDQB UJiK^mom nr: Umi» or |>ur« w«t to fayr bwMtiftil ctton MSN'S TRAVELING CASE: Finert fluaJity black leather cm*. ISrflUl..r Complete ft.t.n.., a. '"««'«»«^ '" ""sM^^- cStMIMIRY SILK STOCKINGS: AH *•»•»«»•"? •'!;^^f ULBX COFFEE MAKER: Make, perf^twf" 'V'/J!'^' g'rr*!.-- he,. „f^al ... and •tainJeaa cl»«niuro. AutomaUc- 3rwSrfi«i^«*?tt»^cr^ct 4 minute. 475 coupon.. maUOOtm MAia-UP BCMC : For your wUet gMvpttftttioM. SeUjcted S2S^vliK^.br«^*rtow«i. towd wood ^^«^ taM. mmarmUt partittow ■m mOf 300 coupon*. PARKER PEN k PENCIL SET; Entreraely amirt and useful, Ilii™^lHng. Pe« haacOBceated .elf -fiUint dev.ce. I« B«nr»ndy. gray or marine peen ^ INLAID WOOD CIGARETTE BOX: »«oder«i.tic.^beaut.M- CIGARETTB CASE: Elgin iport model. Florentineenamrf^ Chro^«n bTrnto. Choice Several b«ut.ful color, 100 coupow. Ai.o-oot illuatrated -playing card.. ^^r'^'tTt^- 'c.r'd*!^ chromium cockt%U cupa. chrom.uin trajji. "''i^'^^^'^rj ^^, cover.. Bridge *»Te pad., J«jeg Cup^ Coattray.. Send for latwt illustrated jwemium booklet, FREE. AfrU 1$, I93S News From Congress Federal epartments MARTlNli under criticisms tlial it was afraid to submit the Industrial Recovery Act to the test of the Supreme Court, the Administration will seek an early review of the New York poul- try code violation case, in which the lower courts upheld the (rovermnent on seventeen of the nineteen points involved. Decision to proceed with the case followed a flood of criticism of the Government's action in with- drawing its appeal in the Belcher case, where the lower courts had held the lumber code invalid. Tlie poultry code case is described by NRA officials as "nearly perfect" for a test of the law% since it covers nearly all the disputed points in the Recovery Act. Procedure incident to bringing the case before the Supreme Court will be expedited in the hope that argu- ment may be held and an opinion rendered before Con- gress passes on legislation extending the Recovery Act. "The case," it was explained in a statement by the Department of Justice, "involv^es the constitutionality of the National Industrial Recovery Act in respect to the delegation of legislative powers and in respect to the powder of Congress under the commerce clause to control through a code local activities alleged to atfect interstate commerce." Ct3 Cj3 C?3 ECEIPT of numerous complaints of damage to fourth class matter while in transit through the mails has led the Post Office Department to issue new regulations regarding the prepara- tion and packing of such parcels and an order that postal employees may be held financially responsible for any loss occasioned by their failure to see that arti- cles accepted by them are not properly packed for han- dling in the mails. Under the new^ regulations, articles easily broken must be securely y)acked in wooden or strong double- faced corrugated fiber-board boxes with ample cush- ioning material of excelsior, crushed paper or the like where needed. Cigars must be in good shipping condition and packed in a manner to prevent damage by shock or jar. Cp Cj3 Ct3 NFAIR competition in the labeling of cigars as * * Havana ' ' when they are not made wholly or in greater part of Cuban-grown tobacco is al- leged in a formal complaint issued by the B^ed- eral Trade Commission April 11th against H. N. Heusner & Son, cigar manufacturers, Hanover, Pa. The Commission has allow^ed the company until May 10th to show cause why an order to cease and desist from the practice charged should not be issued. w From OUR j^^^ Bureau 622Albee Building ISCONTINUANCE of misleading language in contracts for the sale of a "Magic Lighter" by William H. Habenstreat and Beatrice L. Miller, Omaha, co-partners trading under different trade names, is provided for in a stipulation announced by the Federal Trade Connnission April 12th. Under the contracts complained of, retailers signed up api)arontly for llMK) lighters in a co-operative cam- l)aign for the sale of lighter fuel, but, it was alleged, the language of the agreement was so ambiguous and un- certain as to permit the sellers to reserve the greater l)art of the number for use during the selling campaign. Cj3 Cj3 CjD SE of misleading trade terms in the sale of cigars by the John F. Bolon Cigar Company, Bethesda, Ohio, is prohibited under a cease- and-desist order announced bv the Federal Trade Commission April 12th. The company is directed to cease the use of the words "Tampa," "llabana" and "Vuelta Aba.jo" to describe cigars unless they are made in the Tampa district, or of Havana tobacco, or in the Vuelta Abajo district of Cuba, respectively. It is also ordered that the phrases "Cured in rum" and "Matchless Turkish Blend" are not to be improperly used. The company did not contest the proceeding and consented to issuance of the order, the Commission stated. tj3 Ct3 Ct3 PPROVAL of extension of theTndust rial Recov- ery Act was voiced before the Senate Finance Committee April 9th by W. E. Fenner of Rocky Mount, N. C, chairman of the auction and loose leaf tobacco warehouse code authority. Testifying be- fore the committee during its investigation of the NRA, Mr. Fenton declared that the code had saved its mem- bers from ruin and there had been nmch benefit accruing to both customers and labor. It is the only hope of com- |)ensating for the loss in commission revenue from the operation of the Agricultural Adjustment Act and the crop production control program, he said. "We feel that this code has been of great value," he explained, "and we are heartily in favor of its con- tinuance." Mr. Fenner based his approval on the fact that 75 per cent, of the industry by number and 85 per cent, by volume approved continuance of the code. Some of the abuses that had been eliminated were outlined for the committee, including the free trucking privilege given large producers and denied smaller units, but speedier procedure in the prosecution of vio- lators was recommended. The Tobacco WorU Clgari are the most pleasurable and economical VOLUME III. BAYOC BULLETIN Wf OOOWMRT APRIL 15, 1935 NLMliEK 7 PHULOFAXl CONFESSIONS OF iinan pave (The Retailer's Friend) SAYS "Dear Phil: Very fre- quently 1 get valuable! ideas from your Bayuk Bulletin . . . here's a little contribution in part payment. Recently, 1 made quite a little money from an idea a sales- _ to me (I'm a jobber, you know) and I'm just wondering if that salt-man would have given me the idea l.ad I not been enforcing a policy towanls salesmen ever since I've been in busitiess — and that policy is to be friendly to all salesmen who call upon me wluther I can buy from them or not. Thtn, too, I have salesmen on the street and I want to extend to salesmrn who visit me the same cour- tesy ni.\ own salesmen should have given tiiem." (signed) M. 0. T. Thanks a lot, M. 0. T., for your very worthy contribution which Phil knows will be interesting to all readers of Bayuk Bulletin. How about those "summer novel- ties" you carried over from last sum- mer' . . Now is the time to brush 'em up aiui yet 'em ready for this summer. AN OLD TIMER -CHAPTER IV When an important event is sched- uled for your town, do you get all the dope on it . . . where it is to be held . . . euinmencement hour of the doings, etc., so that when a customer comes tfito store inquiring for information, you laii trive it to him — authentically and cheerfully? The days are getting longer which gives us more time to SEE the oppor- tunjiits before us. In this inatallmcnt of the life ttory of • veteran talesman, the "Old Timer" climba another rung of the ladder, and telU how it takes more than mere awbiiion to make succest. Somehow or other the selling bee was getting into my bonnet . . . natu- rally, I was thrown into contact with our own salesmen as well as salesmen who came to sell my Boss, and 1 was getting to like that angle of business. Quite a few of our customers came into the store to pay their bills and, as bookkeeper, I, of course, dealt with them and after a while they seemed to want me to "wait on them," which was quite flattering to me. My method of handling these cus- tomers earned now and then a word of encouragement from my boss and the first thing you know I had built up some trade on the outside . . . this added work did not seem to interfere with my bookkeeping duties and I was not altogether so dumb as not to real- ize I was getting a selling education . . . doesn't one pay to go to college to "learn" and here I was being paid while I was learning in the School of Actual Action! We were some factor in our section on cigars, tobacco and cigarettes and, of course, were visited by the Big Shots of the various manufacturers. I used to look upon some of them as the utmost peak of success ... to live in New York — to travel — to stop at good hotels — how I envi«i them! Well, why not be like one of them? one would go about making a connec- tion with his firm with the ultimate hope of getting in the sales end. "Kid," he said, "you're too young to be a salesman with us . . . you've got lots to learn but, maybe, I could locate you in my office. If you can do short- hand and typewriting, I'll give you a chance at the first vacancy . . . talk it over with your boss ... I wouldn't take you away from him and, if you choose, drop me a line, also, have the boss write me that he would be willing to release you." I did and the boss did and I got the office job with the Big Shot. But — and this is a great big BUT, suppose I had not taken up shorthand and typewriting? I might have argued with myself that knowledge of that kind of work had nothing to do with Selling. Ah — but don't you see that it did? Being able to do shorthand and typewriting put me right with the Big Salesman of that Big Manufac- turer ... it threw me into a real sales atmosphere ... I rubbed elbows with salesmen of all degrees of ability . . . I heard the sales talks to the sales- men ... I wrote the letters of com- mendation and condemnation by the Salesmanager to his salesmen ... I got to see how the good points of a salesman could be enlarged and the bad points corrected. I was getting to learn Salesmanship right oflf the griddle. What was there to stop me' That Keep -'our eyes peeled these days for the "road stands" which are open- ing ui) . . . as the "early bird catches the worm" »o docs the "watchful sales- man catch the opening order." — o — Tl i~ from O. C. T., a projrressive retailer — "When a new store opens up in ruy town, even as a competitor, I rfrop the proprietor a little note of wekume and well wishes." This jrood young U. S. A. is too in- trinsi. ally great to continually groan • . . too gloriously courageous to isrnoldy bust. Let's preach and prac- tice nf.timism^ — not sputter and spread Pessimism — let's not be a Gloomy Gus ambition started to burn in niy brain and could not be quenched. Was too young to expect a job on the road with any of the real big houses and I was determined to tie up only with the biggest of them. How to do it was the problem. Per- haps I could get an office job, thought I, and thus work myself into the sales field. But, to hold down a job in the office, I would have to know shorthand (didn't call it stenography, then) and typewriting . . . took a night course and at the end of six months, was fairly proficient — to be more so was just a matter of practice — and did I practice! Gad, a visualization of being some day like one of the Big Shots was sufficient incentive to keep the old oil-lamp lit for many and many D.B.L 'fff^**"** ••** ■AtUK OGAM IWC, _ ^^ ^^._ ^ itoi» Mff Don't think this "ambition" on my part, if you care to call it that, was altogether of the self-starting model — that first Boss of mine was the real inculcator of my desire to "get ahead" because he showed me how to get a HEAD ... it was he who gave me the right foundation on which to build business advancement. All credit goes to him ... I was just fortunate in having sense enough to listen to him. A representative of one of the big companies paid us his regular visit one day ... I mustered up enough courage iQ ftik bira point bUmk how Opportunity Knocks So, my opportunity to be a salesman came throujrh preparing myself to be a stenographer and to pound a type- writer! I don't mean to say you have to be a stenographer to become a salesman . . . that's not the contention I'm mak- ing at all! I wanted to be a Salesman ... I knew little about selling and besides I was too young to jump pell-mell into selling but I was old enough to know that I could use some other qualifica- tions as a stepping-stone to reach my heart's desire — to be a salesman! Don't think for a moment that I want to unduly moralize, but a little incident just a few weeks ago aptly illustrates the major point I'm trying to put over. I ran into a very like- able fellow and a salesman in a branch house of a rather big organization . . . he was much aggrieved that a former fellow-salesman had been promoted to manager of his branch ... he felt he should have got the job. I asked him if he had planned to get the job. He said it was his great Ambition to land the job. I then asked him if he had "prepared" himself for the manager's job by studying and learning the duties of the job and he replied that he thought there was time enough to do such things when he got to be Man- ager! He had Ambition to be a Man- ager but no PREPARATION to be a Manager ... Do you get how impor- tant the latter is? (To he continued^ CONGRATS, MR. HARRIS! W. M. Harris, cigar salesman, tells this story: — I had a prospect who looked like a hopeless case. He simply wouldn't buy an initial order. One day I walked into his place, opened up a box of my cigars and set it on his case. , , „ .„ "Look here, Mr. X", I said, "will you leave that box there for three days? At the end of that time I'll be around again — and I'll not only take back any cigars you haven't sold, but I'll buy 'em from you at the full re- tail price". ,„ , X thought a minute. "O K", he said, "you're on". I dropped around three days later to find the box sold out and X ready to give me a real order. And best of all, never since has the top of his case been without a box of my cigars. ORCHIDS FOR THE TOUGH CUSTOMER Every salesman likes the good natured customer who makes selling a bill of goods a regular push-over. But along comes Bob Darden, Jr., of Orangeburg, S. C, with a big bououet for the ten minute egg whose middle name is sales resistance. It's the tough baby who makes sell- ing a football game instead of a pink tea (thinks Bob). He's the bird who keeps us on our toes and sets the old think-tank working trying to figure him out. He's the wise boy who's heard all the old gags and makes ua figure out some ne^ sales approaches. And besides all that, the toughest customer has a soft spot somewhere. He has to buy from somebody, or he couldn't stay in business. He buys from the chap who takes the trouble and patience to figure him out. And another thing, once you get the tough hombre on your side, he's going to stay put. Your competitors will find him just as hard to sell as you did. Yes, we all like the "princes" and the "good fellows", but if it weren't for shellbacks, a salesman's life would be a bed of roses without any thorns, and we'd all get too fat and lazy even to stretch out our hands to pick the ripe plums. ^___^ TAKE A TIP FROM OLD MOTHER NATURE Think of all the trouble old Mother Nature goes to every year about this time. She hangs up new leaves on the trees, paints the grass a bright fresh green, puts out an attractive new dis- play of flowers, adds an extra dash of blue to the sky and polishes up the sunshine. Come on, Mr. Retailer, take a tip from Nature. Give the old shop a lick of paint, polish up the windows and cases and brassware. Give your stock the once over and clear out the dead wood. Snap up your window displays. It won't cost you much, and it makes you look prosperous, up-and-coming — all that sort of thing. Makes the pass- er-by feel here's an up-to-date shop where "I'm sure to get my favorite smoke and get it fresh." Makes your regular customers feel better, too. Come on, brush up, spruce up, straighten up. Man alive, it's SpringI la hi* next installment the "Old TloMt^ telU how he made out in The Big Town, •ad how he learned one of the moat valiubU iMson* of his entire career. Don't ■Im Chapttt V of dMM "CMifMatoM." BAYUK BRANDS BUILD BUSl.NESS Bayuk Phillies (BAYUK PHILADELPHIA P^ffBCTO) Havana Ribbon Mapacuba Charles Thomson Prince Hamlet itUadf hy t ,. H. P. Cigar C.,., Im ., Phila. El Producto is the biggest builder of high-grade business. Feature El Producto slender, streamlined shapes as well as full-bodied perfecto shapes — and you will cover 100% of the high-grade market. ^ . RODUaO yor real enjoyment CREMO BACK TO OLD PRICE REMO, selling for five cents for the last year and a half, has gone back to its old price of three for ten. Size, shape and quality remain the same. The cigar goes to the trade at $33.33 less 20, 12 and 2. In announcing the change, Paul M. Hahn, vice-president of the American Tobacco Co., said: ''The Cremo cigar at a price of live cents straight, to which it was raised some lime ago, did not retain the volimie which had been hoped for. Conse- quently, the price has been reduced to three for 10 cents, and we hope to get a volume on which we can make a better showing. The company's Cuban cigar units held their volimie last year against a downward trend for all important cigars. Sales of Bull Durham during the first three months this year are slightly up. Profit of the company for the first two months of 1935 was somewhat in excess of profit for the corresponding period last year. Costs are substantially increased this year over last year due to a number of reasons. What the actual effect of this increase will be will depend upon the volmne over the year. Definitely the tendencies of costs are upward." CODE VIOLATOR RESTRAINED UPREME COURT JUSTICE of New York County, Albert Cohen, granted an ad interim injunction restraining the Silver Rod Stores from violating the Cigar Merchandising Plan on March 29th, and signed an order to show cause why the injunction should not be made permanent. The Silver Rod Stores agreed to adjournment of the hearing on the show cause order until the latter part of April, as it had been brought to their attention that amend- ments were pending affecting the Cigar Merchandising Plan. The compliance of the Silver Rod Stores brought about an immediate correction of all minor violations in the New York territory, and the Cigar Merchandis- ing Plan is now said to be again operating perfectly in the New York territory. The N. R. A. director gave immediate and whole- hearted assistance to the Code Authority as soon as the Silver Rod violation was reported. The very efficient co-operation of N. R. A. headquarters was instrumental in quickly correcting a violation which promised to spread throughout the New York area. The minor violations aggravated by the threatened violations of the Silver Rod Stores were quickly cor- rected by the Local and State Code Authorities upon the signing of the ad interim injunction by Justice Cohen. $24,053,184 TO FARBIERS OTAL expenditures of the Agricultural Adjust- ment Administration in rental and benefit pay- ments to tobacco farmers since its organiza- tion. May 12, 1933, amounted to $24,053,184. Receipts from processing and related taxes on tobacco amounted to $39,784,489. Tobacco producers* sales taxes totaled $2,959,741.38. Tobacco farmers in twenty -five states shared in the rental and benefit pay- ments, Kentucky being the highest with $6,002,567.49, North Carolina second with $5,738,355.70, and South Carolina third with $1,864,035.95. The figures dwindle down to a low of $180, paid to tobacco farmers in Ar- kansas. Tkt T§kaee9 fVorU KDKHAL dl'DGE Chark's 1. Dawson on Ai)ril \'M\\ hold unconstitutional the Kerr-Smith Act icgulatin*;' tobacco production. Ho acted in the suit of Ponn Hrothors, Fayotto County •grow- ers, to enjoin U. S. District Attonioy MacSwinford and Internal Rovonuo Collector Soldon H. Glonn from on- lorcini^- tho law. The test was the first of the law m anv court. lIoldin••"■■• POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large following. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 13 YEARS* EXPERIENCE ON Automatic Machines, wants a position. Also instructs beginners. Address Box No. 558, "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to restaurants and cafe trade. Would like to specialize in 5 and 10 cent cigars under my own brand. Manufacturers communicate with me in reference to worth-while line. Htigh Donowick, 242 Milnor Ave., Lackawanna, N. Y. TRANSFERS If AN ATI A: — 30,052 (Tobacco Leaf). For cigars, cigarettes, cheroots and tobacco. Registered July 14, 1905, by Fernandez, Wodiska y Corra, Tampa, Fla. Transferred to Corral, Wodiska y Ca., Tam- pa, Fla., and re-transferred to United Cigar Stores Delaware Corp., New York, N. Y., March 19, 1935. DON SERADO: — ^24,554 (Tobacco World). For cigars, cigarettes, cheroots, stogies, chewing and smoking tobacco. Registered June 20, 1912, by Klingenberg Bros., New York, N. Y. Transferred by Harry Prochaska, Inc., New York, N. Y., successors to the orig- inal registrant, to Leonidas Arango v Ca.. Tampa, Fla., February 28, 1934. PETER PAN:— 31,460 (Trade-Mark Record). For cigars, cigarettes, cheroots and tobacco. Registered October 18, 1905, by S. R. Moss, Lancaster, Pa. Through mesne transfers acquired by Sun Ray Cigar Co., Dallastown. Pa., and re-transferred to Fred E. Druck It Co., Dallastown,. Pa., June 27. 1932. Tobacco Merchants' Association Registration Bureau, ^NtV^^y^^kTcm Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, Search, Transfer, Duplicate Certificate, (see Note A), (see Note B), $5.00 1.00 2.00 2.00 Note A — An allowance of $2 will be made to membera of the Tobacco Mw. 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 Ob« Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirty-one (31), an additional charge of Two Dollars ($2.00) will be made and so an additional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATIONS TWO-IN-ONE :--46,433. For all tobacco products. Consolidated Litho. Corp., Brooklvti, X. Y., February 0, 1935. CRIMSON CHEST:— 46,439. For all "tobacco products. Crimson Coach, Inc.. Toledo, Ohio, .April 2. 1935. TRANSFERS SANTILLANA: — 37,504 (United HeRistration Bureau). For cigars, cJKarcttts and cheroots; and 96,943 (Patent Office), for cigar.s. Reg- istered May 14. 1935, and May 12. 1914, by Conipania (General de Tabacos de I'liilipina>. Xew Vt>rk, .\. Y. Transferred to United Cigar Stores Delaware Corp. & Conipania General Tabacos de Fili- pinas. .\ew York, X. V., .March 29th, 1935. B. C. A. HAND MADE:— «5 (Tobacco Leaf). For cigars. Regis- tered (Jctober 8, 1885, by Boston Co-Operative .Assn., Boston, Mass. Through mesne transfers acquired by James X. Fink, Boston, •Mass.. and re-transferred to Edward A. Levin, Boston, Mass., .September 1, 1934. TOUCH DOWN:— 45,820 (Tobacco Merchants Association). For smoking and chewing tobacco. Registered October 14, 1930, by Fisher & Koser Tobacco Co., Hanover, Pa. Transferred to Fisher Bros.. Hanover, Pa., March 26, 1934. TWIN CUBS:— 15,649 (Tobacco World). For cigars, cigarettes, cheroots, stogies and tobacco. Registered May 23, 1908, by J. G. it J. A. Fisher, Hanover, Pa. Transferred to Fisher & Koser To- bacco Co., Hanover, Pa., and re-transferred to Fisher Bros., Hano- ver. Pa.. March 26. 1934. HIGH JACK: — 46.075 (Tobacco Merchants Association). For smok- ing and chewing tobacco. Registered June 27, 1932, by Fisher & Koser Tobacco Co.. Hanover, Pa. Transferred to Fisher BriM., Hanover, I»a., March 2h, 1934. JACK HIGH: — 46,074 (Tobacco Merchants Association). For smok- ing and chewing tobacco. Registered June 13, 1930, by Fisher & Koser Tobacco Co., Hanover, Pa. Transferred to Fisher Bros., Hanover, Pa.. March 26, 1934. BIG RUSH: — 45,758 (Tobacco Merchants .Association). For chew- ing and smoking tobacco. Registered June 6, 1930, by Fisher & Koser Tobacco Co., Hanover, Pa. Transferred to Fisher Bros., Hanover, Pa., March 26. 1934. TIN CUP: — 46,174 (Tobacco Merchants Association). For chewing ;iinl smoking tobacco. Registered March 21. 1933, by Fisher & Koser Tobacco Co., Hanover, Pa. Transferred to l-'isher Bros., Hanover, Pa., March 26, 1934. LEILA:— 6,010 (Tobacco Leaf). For cigars. Registered October 7, 1891, by Grommcs & Ullrich, Chicago, 111. Through mesne trans- fers acquired by Manuel Suarez, Tampa, Fla., and re-transferred to Suarez & Tamargo, Tampa, Fla., April 2, 1935. THOMAS BRIGHAM BISHOP:— 29,633 (Tobacco Leaf); and 30,269 (U. S. Tobacco Journal), for cigars, cigarettes, cheroots and tobacco. Registered May 16, 1905, by American Litho. Co., New York, N. Y. Through mesne transfers acquired by Ed. Kolbe and Ed. Japp, Chicago, 111., and re-transferred to Ed. Kolbe, Chicago, III., December 22, 1934. THE JACKSON CIGAR :— 46,432. For. cigars. Registered March 26, 1935, by Ed. Kolbe, Chicago, 111. (Certificate issued upon presentation made to us that the trade-mark or trade name thereto specified, though not heretofore registered in any of our .Affiliated Bureaus, has been acquired by the registrant through mesne trans- fers from Julius Heinze, Chicago, 111., who had registered same with the Secretary of State of Illinois, .August 5, 1904.) HORSE SHOE CURVE:— 5881 (Trade-Mark Record). For cigars. Registered July 15, 1889, by Harris & Sons. New York, N. Y. Transferred by Consolidated Litho. Corp., Brooklyn, N. Y.. who had taken over the cigar label department of the American Litho. Co., K. Y., successors to the original registrants, to W. J. Neff ft Co., Red Lion. Pa., March 25, 1935. RADNOR:— 24,134 (Tobacco Leaf). For cigars. Registered Octo- ber 22. 1902. bv The R. & W. Jenkinson Co., Pittsburgh, Pa. Transferred by the Standard Cigar Co., Pittsburgh. Pa., successes to the original registrant, to W. H. Bailey Cigar Co., Philadelphia, Pa., March 22, 1935. LIBRARY ^ 1 I The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phi la., Pa. Hanover, Pa. Cincinnati, Ohio York Pa AUTOKRAFT BOX CORPORATION ^^^^^^^ j,; Lima Ohio Detroit, Mich. A N At i O I\ WidQ Sc r V 1 c c Wheeling. W. Va. i\ 1 — IIIIIIIIHIIIIIIIIIIIIIIIII PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST. pHILA.. PA. THE TOBACCO WORLD Vol. 55 MAY 1. 1935 No. 9 New Merchandising Plan Proposed LL BRANCHES of the industry are interested in the details of the changes in the Tobacco Codes and the reshaping of the Merchandising Plan which are included in amendments sub- mitted to NRA upon which hearings will be held in Washington on the 13th and 14th of this month. The first day of the public hearings will be devoted to pro- posed changes in the Merchandising Plan calculated to liberalize discount provisions for the manufacturer and the retailer. The second day hearings will be allotted to administrative features. Following is the text to the amendments to the Merchandising Plan: Sales by Cigar Manufacturers Section 1. (a) As to each of the cigars of hia manufacture, each cigar manufacturer shall record with the Council the minimum sales price at which such cigar is to be sold at retail (exclusive of the consumer discounts permitted in Schedule **C'*, hereof and of any governmental tax or charge thereon required to be paid by the jobber, sub-jobber, or retailer) which price, hereinafter referred to as "the retail price" shall constitute the basis for computing the discounts and terms for all dealers as hereinafter provided. The retail price shall be subject to change at the discretion of the manufacturer, provided the revised retail price shall be recorded with the Council before the change becomes eflfective. When the manufacturer desires to establish lower consumer discounts than are permitted under sub-section (a) or (b) of Section 1, Schedule *'C", hereof, he shall record such discounts with the Council simultaneously with the recording of prices on the particular cigar. (b) Except as otherwise provided in this sub-sec- tion, the retail price recorded with the Council shall be uniform with respect to cigars of the same brand, size and shape and shall be prominently marked on the container of the cigars. Differences in retail price of cigars sold under the same brand shall be accom- panied by a change in front-mark and by correspond- ing changes in size or shape which shall be readily ob- servable to the consumer. (c) The retail price recorded with the Council and marked on the container shall correspond with the price classification of the Internal Revenue stamps and of the N. B. A. label required to be aflixed to the con- tainer. Section 2. (a) As to each of the cigars of his manufacture, each cigar manufacturer shall record with the Council the minimum discount to retailers and the credit terms established by him. The retail price less the minimum discount to retailers recorded by the manufacturer is hereinafter referred to as **the man- ufacturer's list price." Discounts recorded with the Council sliall, within the limit hereinafter prescribed in sub-section (b), be subject to change at the discre- tion of the manufacturer, provided the revised dis- counts shall be recorded with the Council before the change becomes effective and the manufacturer's list price shall, so long as effective, be uniform with respect to cigars of the same brand, size, shape and retail price. (b) Each manufacturer may, as to each of his ci- gars, grant additional discounts from the manufactur- er's list price, privided that the aggregate discounts from the retail price (including discounts for cash) when applied as prescribed in Section 2 of Schedule *'E", of this merchandising plan, shall in no event exceed 40 per cent. Discounts allowed for cash shall not exceed 2 per cent., within the manufacturer's estab- lished credit terms. (c) No manufacturer shall grant to any retailer trade discounts more favorable than his generally es- tablished discounts to jobbers. Section 3. No manufacturer shall sell cigars at retail except in accordance with the provisions of this merchandising plan relating to sales by retailers; but the provisions of this plan shall not apply to any cigar manufacturer whose total sales of cigars during the preceding business year were less than 200,000 cigars, and whose sales of cigars direct to the consumer in said year exceeded 50 per cent, of his total sales for that year. Section 4. No manufacturer shall offer or give a free deal. The term **free deal" as used in this Sec- tion means the gift of cigars or anything of value or any special deal, discount or allowance conditioned upon the purchase of a product. Section 5. All sales by manufacturers shall b© evidenced by itemized invoices which shall show the manufacturer's list price and all discounts granted therefrom. Sales by Jobbers and Sab-Jobbers Section 1. Each jobber and sub-jobber shall establish and record with the Council the minimum discounts from the retail price to be allowed upon all resales of cigars to retailers, each such minimuna dis- count not to exceed the minimum discount established for the particular cigar by the manufacturer under the terms of sub-division (a) of Section 2 of Part A. Such minimum discounts shall be subject to change at the discretion of the jobber or sub-jobber, within the limit , Th. TOBACCO WORLD^..,M«h.d .»;, » it'^Hed b. T^b.c« W December 22, 1909. at the Pott Office, Philadelphia, Pa., under the Act of March 3. 1879. hereinbefore prescribed, provided the revised dis- counts are recorded with the Council before the change becomes elTective. The retail price less the recorded minimum discount to retailers is hereinafter referred to as *'the wholesaler's list price" and such list price shall, so lone: as etTective, be uniform with respect to cigars of the same brand, size, shape and retail price. The jobber or sub-jobber may allow to the retailer an additional trade discount from the wholesaler's list price not in excess of five per cent. (5%), and may also allow a further discount for cash, not in excess of 2 per cent., paid within the jobber's or sub-jobber's established credit terms. Section 2. In connection with all resales of ci- gars by jobbers, to sub-jobbers, the jobber may allow to the sub-jobber a discount from the wholesaler's list price not in excess of 5 per cent, on sales of Class A cigars and not in excess of eight per cent. (8%) on sales of Class B and higher cigars. The jobber may also allow to the sub-jobber a further discount for cash, not in excess of 2 per cent., paid within the jobber's established credit terms. Section 3. All resales by a jobber or sub-jobber under this merchandising plan shall be evidenced by itemized invoices which shall show the wholesaler's list price and all discounts granted therefrom. Section 4. No jobber or sub-jobber shall sell cigars directly to the consumer except through an established retail department and in compliance with the provisions of this merchandising plan relating to sales by retailers. Sales by Retailers Section 1. In the case of all cigars purchased by retailers from cigar manufacturers or wholesalers, in connection with which a retail price shall have been recorded as hereinabove i)rovided, tlie retailer shall sell such cigars at retail at not less than the retail price so recorded, provided, however, that (a) In the case of the sale at retail of less than 25 units, having an aggregate retail sales price of not less than 25 cents, a consumer discount may be allowed of not more than 10 per cent, from the retail price, unless the cigar manufacturer shall record with the Council a maximum consumer discount of less than 10 per cent., in which case the recorded discount shall be observed as a maximum, and (b) In the case of sales at retail of containers of not less than 25 cigars, a consumer discount of not more than 12V- per cent, from the retail price may be allowed, unless the cigar manufacturer shall record with the Council, and mark the container accordingly a container price involving a consumer discount of less than 12^/^ per cent., in which case the marked container price shall be observed as a minimum, and (c) In the case of sales at retail of 250 cigars or more, a consumer discount of not more than 15 per cent, from the retail price. (d) The minimum retail price shall be the retail price recorded by the manufacturer less such consumer discounts as are permitted under sub-sections (a), (b) and (c) hereof. In calculating such minimum retail price, fractions of a cent in the price shall be raised to a full cent. (e) The retailer may give not more than one pad of matches for each unit sold, or five pads per box of 25 cigars or ten pads per box of 50 cigars sold. (f ) In the case of any retailer granting a cash dis- count on the aggregate price of all purchases made, sales of cigars shall be excluded in computing the cash discount to be allowed or the amount of any cash dis- count (other than consumer discounts provided for in sub-sections (a), (b) and (c) hereof) on sales of cigars shall be added to the minimum retail price referred to in sub-section (d) hereof. Section 2. Upon any sale to a consumer, situated at the time of the sale in a state imposing a tax on ci- gars or the sale thereof (other than a tax payable by the manufacturer) the amount of such tax, if not paid by the consumer, shall be added to the minimum retail price provided in sub-section (d) hereof, whether the seller shall be located within or without such state. Section 3. AMierever under the provisions of this merchandising plan any cigar is required to be sold at retail at a mininumi price, the minimum retail price shall not except as in said plan otherwise expressly provided be reduced directly or indirectly, or by any device or subterfuge such as the giving of any trading or merchandise coupons, prizes, premiums, discounts, rebates, refunds, conmiission credits, allowances or any other thing of value whether in the form of money or otherwise ; nor shall any retailer offer or extend spe- cial service or privilege to any customer which is not available to all customers. Blinimum Discounts Upon the recommendation of the Code Authority established by the Code for the Cigar Manufacturing Industrv or the Code for the Wholesale Tobacco Trade or the Code for the Retail Tobacco Trade, or upon application of any member of the Cigar Manufactur- inic Industry or of the Wholesale Tobacco Trade or of the Retail Tobacco Trade and the approval of such reconnnendation or a])plication by the National Indus- trial Recovery Board, the Code Authorities established bv the said several codes, shall, upon such notice and opportunity to be heard, if any, as the Board may re- (piire, determine by joint action uniform minimum dis- counts to be prescribed in connection with sales of ci- gars bv any member of said industry or trades, and the determination shall, subject to the approval of the Nati(»nal Industrial Recovery Board, be effective upon the concurrence of all three Code Authorities and be binding upon all such members. Provisions Applicable to All Sales of Cigars Section 1. The retail price marked on the con- tainer of cigars by the manufacturer shall not be re- moved, obliterated, changed or obscured before the ci- gars in the containers have been sold to the consumer. Section 2. Wherever any of the provisions of this merchandising plan provide for two or more dis- counts from the retail price, such discounts shall be comi)uted separately and successively so that each suc- ceeding discount shall be computed upon the balance of the retail price remaining after the deduction of the next preceding discount provided for. Section 3. Anv change by the manufacturer m retail price shall be applicable as of the effective date thereof of such change to all merchandise thereafter sold by wholesalers and retailers, but wholesalers and retailers mav, notwithstanding any reduction m the retail price, dispose of existing stocks on the basis of the retail price prevailing when such stocks were ac- quired. Th* Tobacco World Sales Below Cost Banned Allowance Also Set for Retail Cigarette Distribution HE National Industrial Recovery Board on April 23d approved an jinieiuhnent to the code for the retail tobaeeo trade which forbids the sale of tobacco ])r<)diicts below iiieielunidise cost as defined in the code, and which deliiies merchan- dise cost as manufacturer's list ])rice less 5).l per cent. ill the ease of cigarettes and 7.1 per cent, in the case of other tobacco products. The approved amendment also permits the code authority to submit for XRA ai)])roval an allowance for costs of retail disti-ibutioii, to ])e included in all sales after such aiJproval. At the same time the amend- ment was a])i)r()ved, the l)oajd issued an administrative order establishing such an allowance for the cost of retail distribution of cigarettes, l)ut not for other tol)acco products. These ameiulments are designed to stop abuses resulting from the use of tobacco pi'oducts as loss leadeis. They are substituted foi- the foniiei' code j)ro- visions ])rohil)iting destructive price cuttiii.i»-, and per- mitting minimum i)rices to he established when an emergency due to destructive jirice cutting could be shown. I nder the terms of the forniei* code provi- sions an emergency in cigaiette distribution was found to exist, and minimum markups established, etTective July If), 19.34, for temporary peiiods, extended from time to time. The last extension would have expired April 30th. The allowance for costs of retail distribution aj)- jiroved pursuant to the amendment approved today is the same as the minimum markups apjiroved in the various emergency orders. Its elTeet is to require that cigarettes be sold at retail foi not less than thirteen cents a package or two packages for twenty-iive cents lor the most popular brands, and not less than ten cents a package for the lowei- piicetl cigarettes. The order provides that at least ')\\ per cent, must be added to the manufacturer's list price in sales of cigar- ettes of which the list price is ^l) per tliousaiid or less, and (31/0 per cent, in the cases of those listing over $5 a thousand. When the emeraencv order was extended on Jan- nary 24th, the Xa1i ios> leaders during the time the emergency order was in etfect, the amendment approved today includes all tolmcco products. Xo al- lowance for costs of retail distribution has vet been api)rove nuijorm f"r all packages of cigarttto, the same , liKI.'), and establishes the retailer's cost, at manufacturers' list price less 7.1 per cent. While awaiting the mark-up onler on tobacco products other than cigarettes, these i)roducts cannot be sold for less than retailers' cost or utauufacturers' list price less 7.1 per cent. In coin})uting minimum ])ric«'s a frac- tion of a cent shall be treated as a full cent. Do not confuse the prices at which you buy tliese |)roducts from the jobber with the tuauufaeturers' list prices. To illustrate: The tuauufaliIA. m BAYUK PHILLIES IN LEAGUE AYUK PHILLIES is represented in the Greater Philadelphia Industrial Baseball League this year with a team which, it is hoped, will give as* good an account of itself as the famous Phillies bowling team. The season starts on Mondav, Mav 6th, with a game on the Bay uk home .-rounds, Twelfth and Bigler Streets. E. M. Hirst is Uie mana^^er . . . Costello Brothers, Inc., Bayuk dis- tributors in Pawtucket, R. I., are enjoying a marked sale and demand for Phillies throughout their t^rri- torv. Recentlv J. F. Wrenn, Bayuk salesman, assisted in a successful promotional campaign m the Pawtucket market . . . Harry Rice, of the N. Rice Cigar Co. dis- tributors for the Pittsburgh section, stopped off at the iactorv during the past week and expressed his keen ,)loasure at the way Bayuk Phillies are selln»g i^ the Smokv Citv district ... I. Goldberg, of I. Goldberg & Co ('^oateiville, Pa., Bayuk distributor, just returned from Europe looking and feeling fine, having pro- nounced his trip exceptionally interesting and en.ioy- able B. R. Riber, Hillsboro, Ohio, authorized dis- tril)uior for Bavuk cigars for that territory, is procee4- in«' at a pleasing pace with distribution and sale on the uirper trend of Bavuk Phillies and Havana Ribbons A C. Rov, New England territorial manager, vis- ited headquarters over the week-end and arranged for additional shipments to meet the increasing demand for Phillies in that sector. JENKS ON MIDWEST TRIP I A. JENKS, assistant sales manager of G. H. P. (Igar Co., is on a two weeks' trip through the Midwest, calling on the branches and jobbers. He is gratified with the increase in sales of both El Product© and La Azora . . . Before embarking on this journev, he conducted an enthusiastic sales meeting at Kearnev-Lehman Co., in Buffalo . . Busi- ness is good with G. H. P. products and getting better, and the companv is in receipt of many congratulatory eommonts on the new advertising campaign. Crosl)v 8(iuare, the new smoking mixture intro- diucd recentlv bv Yahn & McDonnell to the Philadel- phia market, 'continues to enjoy a surprising demand and they report it necessary to wire to the factory tor rush shipments frequently in order to fill orders. ^oy t, 1935 Trade Notes George Stocking, the genial ambassador of Arango y Arango, is expected to pay Philadelphia retailers and distributors a visit this week. John Wagner & Sons report the new three-for-a- quarter size of their Monticello cigar enjoying a splen- did demand, as well as their Wagner brand. Herman Abrams, factory representative for the Medalist factorv, was in Atlantic City last week pro- moting the distribution and sale of this well-known brand. Yahn & McDonnell report the brand enjoying an increasing demand here as >yell. John Flanagan, manager of the M. J. Dalton stand at 617 Chestnut Street, featured Optimo and As lou Like It cigars in his window last week and reports the display attracted considerable new business on these popular brands. Among Philadelphians visiting the New Jo^k City leaf tobacco market last week were George Zifferblatt, of Geo. Zifferblatt & Co., manufacturers of the Haban- ello Spencer Morris, and other well-known cigars; Si Schloss, leaf tobacco dealer, together with his part- ner, J. Meyerhof. The Cedarap cigar, just introduced here by Yahn & McDonnell, is meeting with a hearty reception from smokers of quality cigars. The cigar is a guaranteed 1(X) per cent, long filler Havana, individually wrapped in the good old Spanish cedar veneer and then wrapped in cellophane, thus assuring each cigar that rich and (now old-fashioned) mellow flavor which can be ac- quired in no other way (according to Mr.Hanagan, manager of the M. J. Dalton stand). The cigar retads at ten cents and up, and can be supplied with the name of an individual or organization printed on the cedar wrap. Tying Ad Copy to Hockey Games N the niGchanical jilant of a Toronto morning pa])er lliat goes to press shortly after mid- niuht, a stcme-liaiul i^azes nionrnfiiUy at a 600- liiie advert i^eineiit for Tiickett Limited on Philip Morris "Xavy Cuts" eiuarettes. Ten P. M. and still no si^ii of eoi)y or halftone. Feverishlv serihblinii' awav at his desk in his ageney, ^iv. Copywriter — at least that's the way the story would seem to continue — is, in reality, doing no such thinii. The truth is he is eomfortahlv seated watching a hockey game at the ^laple Leaf Garden. Maybe he wants to be fired! Wrong again! For Mr. ('(>i)ywritt'r really is being very much on the job. Suddenly he rises from his seat and dashes to a telei)hone. Connected, he says, "Bill Brydge tonight," listens a moment, nnitters "Right," and hangs up. Back in tlie newspaper oflfice, out of 150 photo- graphs, Bill l>rydge"s picture is yanketl and sent on its way to become an engraving. And what is all this mysterious ])usiness? It's all part of the advertising plan of Tucket t Limited to cap- italize on the interest of Canadians in the game of hockey. The trade character of the Philip Morris "Navy Cuts" cigarettes in Canada, as in the case of Philip Morris cigarettes in the States, is a "Call" boy and the slogan used is also the same, "Call for Philip Mor- ris." In each of the company's advertisements, which have been running on the day following each Maple Leaf home game, Philip Morris "calls" the outstand- ing player of t he previous night 's game. A line draw- ing of a hockey player in action with an oversized halftone of the head of the player who gets the call is superimposed on a large Philip Morris package. Copy, which is signed "Phil," is short, light, and briefly describes the previous evening's hockey battle. Close co-operation between the copy \vriter and the mechanical staff of the newspaper made this ad- vertising theme possible. In the composing room of the paper there W'ere three full-size electros of the body of the advertisement — the only parts that had to be supplied before locking up being the name of the star player of the previous evening, the halftone of his head, the sub-heading and the copy, some sev- enty-five words or so. The only difference in the three electros w^as that the action line drawing in one was that of a left-wing player, the other of a right-wing player and the third that of a goal keeper. The electro used for any par- ticular ad depended on the position which the player who got the call occupied on his team. After the selee^ tion of the proper electro, the necessary type was set and mortised in. The halftone of the player's head was })ut in place and the ad was complete. A full set of photographs of all the players in the eight National Hockey League teams was required in order that Phil might not be restricted in any w^ay in making his call. Reports Tuckett Limited: "It is kno^vn that the advertisements have quite an extensive following. At the games between periods a common topic of conver- sation among the fans is, 'Whom do you think Philip Morris will call tonight?' " — (Reprinted from Print- ers' hik.) Public Hearing on Merchandising Plan PUBLIC hearing on a proposed revision of the cigar merchandising plan, as requested by the Code Authorities of the cigar manufacturing industry, the wholesale tobacco trade and the retail tobacco trade, will be held by Deputy Admin- istrator Irwin 8. Moise, in the Carlton Room of the Carlton Hotel, Washimrton, on Mondav, Mav 13th, it has been announced by the National Industry Recov- ery Board. The hearing will start at 10 A. M. The revision is contained in a proposed amend- ment to Schedule I of each of the three codes. It is de- signed to liberalize the plan now^ in effect particularly in regard to consumer discounts and would remove most of the fixed maximum discounts. At the same hearing consideration will also be given to amendments proposed by the Code Authority for the cigar manufacturing industry to provide a maxinnnn eight-hour day for productive employees in the industry; to clarify the minimum hourly w4ge re- quirements for those engaged in the production of 2 for 5 cents cigars including stogies, cheroots and little cigars; and to give the manufacturer additional control over his wholesale and retail outlets. Another amendment would ban secret rebates, or the nse of subterfuge to frustrate the spirit or intent of the code. Provision is also made for each member of the Code Authoritv to ha%^e an alternate. Asks Reallocation of Budget Funds HE Code Authority for the Cigar Manufactur- ing Industry has made application to the Na- tional Industrial Recovery Board for the real- location of certain budgetary funds. The bud- get was conditionally approved on September 19, 1934. The total amount of the budget for the period from June 19, 1934 to and including June 15, 1935, wan $280,160. Among the various budgetary items was the sum of $47,500 set aside for the lithographing of NRA insignia stamps. Operations have shown that this amount is in excess of that actually required. On the other hand, it is indicated that legal ex- jjenses will be in excess of the amount approved. Con- sequently, the Code Authority has requested that they be permitted to increase the amount set up in the bud- get for legal expenses, by $75(K), this sum to be allo- cated from the amount provided for lithographing NRA insignia stamps. Any criticisms of, objections to, or suggestions concerning this reallocation of budgetary funds must be submitted to Deputy Administrator Irwin S. Moise, Room 530, Barr Building, Washington, D. C, prior to Tuesday, May 7, 1935. Tkf T0bue0 World May I, tp35 Cigarettes Show Another Gain in March HE following comparative data of tax-paid products, indicated by the monthly sales of stamps, are issued by the Bureau for the in- formation of representatives of the several in- dustries, trade journals, etc. ( Figures for March, 1935, are subject to revision until jiublished in the annual report or, on liquors and oleomargarine, until pub- lished by the Alcohol Tax Unit and the Miscellaneous Tax Unit) : -March- Products Cigars (large) — Class A . . . ...No. Class B No. Class C No. Class D No. Class E No. 1935 311,926,325 4,789,407 31,748,998 2,967,780 261,592 1934 306,654,825 4,488,203 39,655,908 3,082,147 279,864 Total 351,694,102 354,160,947 Cigars .(small) No. 13,414,907 20,458,013 Cigarettes (large) ...No. 164,500 35,397,000 Cigarettes (small) ...No. 10,199,611,800 9,333,113,760 Snuff, mfd Lbs. 3,182,654 3,825,940 Tobacco, mfd Lbs. 24,787,829 27,652,361 Tax-paid products from Puerto Rico (not included in above statement) were as follows: Ma rch Products Cigars (large) — Class A No. Class B No. Class C No. 1935 3,995,245 113,950 41,000 1934 6,271,900 6,500 61,000 Total 4,150,195 6,339,400 300,000 110,000 513,800 Cigars (small) No. 150,000 Cigarettes (large) ...No. 70,000 Cigarettes (small) ...No. 300,000 Tax-paid products from the Philippines (not in- cluded in above statement) were as follow^s: March Products Cigars (large) — Class A No. Class B No. Class C No. Class D No. Class E No. 1935 17,663,345 26,583 31,526 500 « * * • ■ 1934 20,201,785 62,227 23,400 • ••••■ 300 j.oXrai .......... Cigarettes (small) ...No. Tobacco, mfd Lbs. 17,721,954 20,287,712 148,450 1 285,500 5 March Cigar Withdrawals, 1920 to 1933 Inclusive March, 1920. 1921. 1922. 1923. 1924. 1925. 1926. JO 753,239,958 March, 1 927 . . 561,343,699 1928 . . 529,162,381 1929.. 547,514,691 1930.. 515,895,112 1931 . . 504,303,979 1932 . . 564,224,856 1933.. 528,697,564 497,904,282 491,304,798 454,765,717 440,472,410 355,382,130 290,111,072 Internal Revenue Collections for the Month of March Sources of Revenue 1935 1934 . Cigars $877,722.29 $918,197.80 Cigarettes 30,600,592.94 28,255,356.96 Snuff 572,877.78 688,778.59 Tobacco, chewing and smoking 4,461,992.23 4,977,838.73 Cigarette papers and tubes ... 79,909.94 84,605.82 Miscellaneous, relating to tobacco 188.86 258.02 Detail of Collections From Agricultural Adjustment Taxes, Cotton Ginning Tax and Tobacco Sale Tax Total from Month of July 1,1934 Commodity March (fiscal year 1935 ) Tobacco (tax effective October 1, 1933) : Processing tax ..... $2,645,038.21 Import compensating taxes 20,388.93 Floor taxes 46,784.24 $23,889,006.66 183,734.81 280,566.07 Total, tobacco. . . $2,712,211.38 $24,353,307.54 Tobacco sale tax $173,115.13 $3,126,468.83 CIGAR CODE AMENDED IIE National Industrial Recovery Board has approved an amendment to the cigar manu- facturing industry's code, which substitutes a new Section 4, of Article HI, in relation to the pavment of time and one-third on legal holidays. As the* result of confusion as to legal holidays recog- nized in some states and not in others, the new section now specifies New Years Day, Washington's Birthday, Memorial Day (Confederate Day), Independence Day, Labor Dav, General Election Day, Thanksgiving and Christmas'. The new section also adds wrapper casers to those employees for whom time and one-third is not required on holidays. Section 9 of Article IV is also amended for the purpose of clarifying the code in its requirements re- garding slow workers, RETAIL CODE NOTES Hearings on the amendments to the Cigar Mer- chandising Plan will be held in the Carlton Room of the Carlton Hotel, Washington, D. C, May 13th and 14th. . . . ^^ Amendments affecting the price provisions in the Code will be held on Monday, :May 13th. Amendments affecting enforcement of the Code's provisions will be held on Tuesday, May 14th— see notice attached. The amendment to the retailers* Code making the cigarette order permanent has been approved by the Administration. The prices as established by the tem- porary order will continue without change. The amendment allows that a price floor be estab- lished for smoking tobacco, and it is expected the order will issue from the Board shortly which will establish minimum prices for smoking tobacco, chewing tobacco and snuff. Tkt Tobaeeo WorU Cigars Up 97 Millions in 9 Months Cigars: Class A — United States . Puerto Rico . . Philippine Is.. . First 9 — Decrease Mos. Fiscal -^-Increase Year 1935 Quantity 2,999,874,420 + 145,278,895 43,222,275 — 241,605 153,010,330 — 27,709,050 Total 3,196,107,025 + 117,328,240 Class B— United States Puerto Rico Philippine Is. 47,969,323 + 1,440,950 — 433,783 + 21,629,635 715,650 263,292 Total Class C— United States . Puerto Rico . . Philippine Is. . . 49,844,056 + 21,177,277 Total . • * • • 395,669,670 552,350 208,914 396,430,934 36,188,718 243,080 1,628 36,433,426 Class D— United States Puerto Rico . Philippine Is. 29,847,953 — 3,322,734 1,500 -f 500 3,427 + 1.377 Total . • «•••*• 29,852,880 — 3,320,857 CnassE— United States . . . Puerto Rico Philippine Is 3,328,366 — 1,745 — 795,144 1,111 Total 3,330,111 — 796,255 Total All Cla.sses : United States , . Puerto Rico — Philippine Is Grand Total . . 3,675,565,006 + 97,954,979 May J, I93S Little Cigars : United States . . . Puerto Rico Philippine Is 145,753,960 — 1,790,000 — 16,800 + 25,112,627 540,000 16,800 Total 147,560,760 — 25,635,827 Cigarettes : United States Puerto Rico . Philippine Is. Total 93,957,164,886 +9,918,839,564 2,961,570 — 588,230 1,065,640 — 111,110 93,961,192,096 +9,918,140,224 Large Cigarettes : United States . Puerto Rico . . Philippine Is. . . 1,763,943 306,000 ■ 100 70,479,757 449,000 6,300 Total 2,070,043 — 70,935,057 Snuff (lbs.): All United States. Tobacco, mfd. (lbs.) : United States . . . Philippine Is 27,133,254 — 1,250,963 224,916,827 16 5,871,049 60 Total 224,916,843 — 5,871,109 RETAIL CODE ABIENDMENT PUBLIC hearing on a proposed amendment to the approved code for the retail tobacco trade will be held by Deputy Administrator Irwin S. Moise, in the Carlton Room of the Carlton Hotel, Washington, D. C, at 2 P. M. on Tues- dav May 14th, it has been announced by the JNational Industrial Recovery Board. The amendment would forbid a member of the trade to buy from wholesale tobacco dealers or manufacturers, after formal noti- fication bv the Code Authority that such dealer or manufacturer was in violation of the labor, hour, wage or fair trade provisions of their respective codes. II ^i:i V IMSUfI UlHlS3lir:3tr pUl !• La !i_LIM N EW5 From Congress _ 'AND Federal Departments '•11 PUBLIC hearing on the retail tobacco trade code will be held before Deputy Administrator Irwin S. Moise May 14th, to discuss a pro- posed amendment which would prohibit a mem- ber ol' the trade from buying from wholesale tobacco dealers or manufacturers, after formal notification by the code authority that such dealer or manufacturer was in violation of the labor, hour, wage or fair trade provisions of their respective codes. cp cp cp OSSIBILITIES of tax relief rather than of in- creased taxation are held out by Adudnistra- lion leaders in the House of Representatives. Members of the Ways and Means Committee will meet in the near future to draft the legislation extending the emergency taxes which are due to expire this year. Present plans, it is said, are to confine the bill to this one feature, and it is practically assured that no new taxes or increases in rates will be proposed by the committee. If any form of tax relief is to be granted, it is be- lieved it may take the form of an exemption of up to $^3000 from payment of the corporation income tax by businesses with net incomes of not more than $25,000. Such an exemption was provided in the 1928 tax law, but was repealed in 1932 when the rate was in- creased from I2V2 to 13% per cent. Cj3 CS3 Cj3 EMPORARY extension of the Industrial Re- covery Act in its present form, probably until March 1st, next, as a means both of avoiding a bitter fight in the Senate and of giving time for clarification of the situation through Supreme Court action, has been suggested to President Roose- velt. It is felt that by extending the present law so as to throw its revision into the next session of Con- gress it would be jjossible to expedite Senate consider- ation of other matters, w^hile also giving Congress an opportunity to have the benefit of Supreme Court de- cisions on the various points involved in the present controversy over NRA. If the plan for postponement of new legislation is not accepted, however. Senator Harrison, chairman of the Finance Committee and author of the extension bill, is prepared to fight the issue out this session and has prepared a number of amendments to his measure. u From our Washington Bureau ^Zkati Building Under one of these amendments trade associations woukl be definitely separated from code authorities but constituted, if they so desire, as advisory committees. Price fixing, except as to minimum price to prevent unfair selling practices, would be prohibited, and pro- (hietion control would be limited to the natural re- source industries and to certain others, such as textiles, where it is felt to be essential. The present requirement by some code authorities of standard systems of accounting and the fixing of I dices based thereon would be outlawed, and a definite statement woukl be made of those things which could be considered as granting immunity from the anti-trust laws. Cj3 Cj] Ct3 KiAH manufacturers, wholesalers and retailers have been caUed to Washington May 13th to consider recommendations of the code authori- ties of the three branches of the industry for levision of the cigar merchandising plan. The cigar manufacturers also will be asked to consider amend- nunts to provide a maximum eight-hour day for pro- ductive employees; clarifying the minimum hourly wage requirements for those engaged in the produc- tion of two-for-five-cent cigars, including stogies, cheroots and little cigars ; giving the manufacturer ad- ditional control over his wholesale and retail outlets, and ]>anning secret rebates. The new cigar merchandising plan is designed to olfer more liberal provisions, particularly in regard to consumer discounts, and would remove most of the fixed maximum discounts. CS3 CJ3 Cp MENDMEXT of the cigar manufacturing code to eliminate the confusion which has prevailed regarding legal holidays has been approved by the National Industrial Recovery Board. Be- cause of the fact that not all holidays are generally ob- served throughout the country, the amendment speci- fies those with respect to which the provisions of the code requiring payment of time and one-third apply, as including New Year's Day, Washington's Birthday, Memorial Day (Confederate Day), Independence Day, Jaibor Day, General Election Day, Thanksgiving and Christmas'. The amendment adds wrapper casers to those employees for whom time and one-third is not re- quired as holidays. Tk§ T9baee9 WfU MILDNESS CAMEL CAMPAIGN THEME HIE MILDNESS of Camels is the theme of the new cigarette advertising campaign of the R. J. Reynolds Tobacco Company, which features the announcement that Camels are "so mild von can smoke all you want. " It is supported by state- inents from a representative group of athletic stars and champions in various strenuous sports who smoke Camels and have found that "they don't get your wind." . . . This new campaign of advertismg is now appear- ing regularly in the Tobacco World. It is expected that Camels' consistent policy of newspaper advertising will be continued. In the first advertisement Gene Sarazen, famous golf champion, pictured both smoking a Camel and in action, is quoted: "Traveling and playing as much as I do I have to keep in condition. I smoke Camels stead- ily. They're so mild they never get my 'wind' or nerves." Other athletes w^ho comment on the mudness ot Camels in statements accompanied by "action" photo- graphs are Georgia Coleman, holder of thirteen na- fional and Olympic diving championships ; Melvin Ott, batting star of the New York Giants baseball team; .John L. Skillman, squash racquets chanqiion; Bill Miller, four times national sculling champion, and Jim Lancaster, captain of an undefeated New York Univer- sity basketball team. It is pointed out that a cigarette whose mildness has won the patronage of outstanding athletes — who have to know what real tobacco mildness is; — naturally has a mildness which will appeal to the non-athletic smoker as well. The quality of the tobaccos used in the manufac- ture of Camels is consistently stressed. Each adver- tisement gives prominent display to the statement, sii^med by R. J. Reynolds Tobacco Company, that "Camels are made from finer, more expensive tobaccos —Turkish and Domestic — than any other popular hrand." LINK AGAIN HANDLES MURIEL INK & CO. of Buffalo, N. Y., who for many years successfully promoted Muriel cigars in the Buffalo territory when the Muriel size of 10 cents and up w^ere leading sellers in that market, have again taken over the distribution of the l>rand. Thomas J. Link has had his sales organization on their toes with the intention of again making Muriel the leader and he feels this can be accomplished, con- sidering the line has been strengthened with the present Senators size. Right at this time the Link organization is con- ducting an intensive campaign for distribution and dis- play, assisted by three Lorillard cigar salesmen. Here is an* incident in connection with the reap- pointment of Link & Co. as distributors that is some- what interesting. Frank Eagan, one of Buffalo's lead- ing retailers, sent Link & Co. an order for 500 Muriel Blunts and made this notation on it — **I Gave You a Simblar Order on a Similar Size, 20 Years Ago— Please Accept This Order With My Best Wishes." With such spirit at the outset it is felt that Muriel is once again headed for leadership in the Buffalo terri- tory. May I, t93S ROFIT BY THE NEViT DEMAND FOR OLD GOLD A new heavy demand for Old Gold is sweeping the country. New dealers especially have sensed this trend. They are not only stocking-up, but playing-up Old Golds. The makers of "America's Smoothest Cigarette" ore cooperating with a new line of timely win- dow cords and other helps that every Old Gold dealer should have on display. Ask your jobber to help you sell more Old Golds. p. LO R I LLARD C O., I N C. Effabli(h«d 1760 llf WIIT 40TH STIIIT NEW VOtK CITY TOBACCO TRADE OBQANIZATIONS tobacco merchants association .^:#'flSfS^ OF UNITED states "^^J^*^ JESSE A. BLOCH. Wheeling. W. V* / Vr'S^'-j"! JUULS LICHTENSTEIN, New York. N. Y ^... • vV'^pP"*'?'!! WILLIAM BEST. New York. N. Y Chairman Executive Committee MAL GEORGE W. HILU New York. N. Y Vice-President GE<5rGE H. HUMMELL. New York N. Y ViceKHlS H H SHELTON. Washington. D. C Xr •" o 'S . WILLIAM T. REED. Richmond. V. vl«p'r«i5«t HARVEY L. HIRST. Philadelphia. Pa ^ T^!!.t«r ACA I FMT FIV Ww York N Y ireaaur«r raiiSs DUSHkTnD. N;w York. N. Y 0.«n.el and Managing Director Headquarter!,. Ml Madison Ave., New York City RETAIL TOBACCO DEALERS OF AMERICA. INC. WILUAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y ....Pretident CLIFFORD N DAWSON. Buffalo. N. Y Executive V.ce-Pre.ident JAMES C. THOMPSON. Chicago. Ill Treasurer ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS. New York City Fi;;; vUe'-Pr^id"? MILTON RANCK. Lancaster. Pa ^"»t J " ^re. laent D. EMIL KLEIN. New York City ^'s^reUry Tr«.tS LEE SAMUELS. New York City becreury ireasurv NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN. 180 Grumman Ave.. Newark, N. J b": ;V-""S"!'j!2l ALBERT FREEMAN. New York, K. Y -First Vice-Pr"ident fR^EN M. MOSS. Trenton. N. J Second Vice-Prejident A. STERNBERG. Newark. N. J secrewry RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA sl3?UEL 1&GID?'^1 N/MeVvine Si^^^^ THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS, INC. E. ASBURY DAVIS. Baltimore. Md. - ••■•i:"i;- kV SMmSr JOSEPH KOLODNY. 200 Fifth Ave. New York. N. Y tSwS GEa B. SCRAMBUNG. Cleveland. Ohio Treasarw UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION tnuM IT RROWN ?***1j*I!I? German HYAFFE. 301 Fox Building. Philadelplii.. Fm. S«r«t«y 13 EaiabUihed 1886 "BEST OF THE BEST »» "-<"'""' "' A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Keg West. Florida OUR HIGB-GIADE NON-EVAPOIATINO CIGAR FLAVORS ^ u u . Make tobacco meUow and aaiooth In cbaractar and Impart a most palatable flavor ruYORS FOR mmm wd chewing tobacco Write for Llat of Flavora for Special Brands BMTUN. AIOMATIZEI. BOX PLAVOKS. fASTB SWEETENEIS FRIES 8k BRO., 92 Reade Street, New York RmmuBuaoHLPimma Classified Column The rate foi this colamn i« three cent* (3c.) a word, with a minimum charge of eeventy-fiTe cenU (75c.) payable •trictly in advance. :r^\"'fifCt:rti\- ' ^•^' f»<.:fti<'':f»"fii! POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large followii»g. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON Automatic Machines, wants a position. Also instructs beginners. Address Box No. 558, "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to restaurants and cafe trade. Would like to specialize in 5 and 10 cent cigars under my own brand. Manufacturers communicate with me in reference to worth-while line. Hn^ Donowick, 242 Milnor Ave., Lackawanna, N. Y. FOR RENT 30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A 3-8tory and concreted basement building adjacent to P. R. R. freight sUtion in York, Pa. Building of sufficient strength to accom- modate at least 50 cigar-making machines per floor. S^ A. Kanff- man & Bro., York, Pa., for inspection and details. HAVANA CIGARS BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT *• LOVE— Adopt as your slogan, "Kiaa yow beer, but love yow d- I.** Specially those Havana blended, "Good to the laat Puf^** infactured by A. Ramirez & (>>., Pott Office Box 1168, Timya, fk. Write them for partknlart today. Tobacco Merchants' Association Registration Bureau, ^NtV^lro^^m 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 •Uowancc of $2 will be made to membert of the Tobaceo Mer- chants' Attociation on each registration. Note B— If a report on a search of a title necessiutes the reporting of more than ten (10) titles, but less than twentr-one (21), an additional charge of One Dollar ($1.00) will be made. If it neceiaitates the reporting of more than twenty (20) titles, but less than thirty-one (31), an additional charge of Two Dollars ($2.00) will be made and so an aaditional charge of One Dollar ($1.00) will be made for every ten (10) additional titles necessarily reported. REGISTRATIONS SAN DOVAL: — 46,440. For cigars only. Consolidated Litho. Corp., Brooklyn, N. Y., October 4, 1934. SPECIAL VALUE: — 46,443. For cigars, cigarettes and smoking to- bacco. National Cigar Stands Co., New York, N. Y., April 13, 1935. CLUB LIDO: — 46,445. For all tobacco products. Crimson Coach, Inc., Toledo, Ohio, February 13, 1935. GOLDEN ROOT: — 46,446. For pipes, tobacco and smokers' articles, Iwan Ries & Co., Chicago, 111., March 23, 1935. SEEDAROLL: — 46,447. For cigars. Gradiaz, Annis & Co., Inc., Tampa, Fla., April 17, 1935. RICHARD B. HARRISON:— 46,448. For cigars. El Predomino Cigar Co., Chicago, 111., April 19, 1935. TRANSFERS H ft H.:— 23,470 (Tobacco World). For cigars. Registered Decem- ber 5, 1911, by J. W. Levy, Philadelphia, Pa. Transferred to S. P. Halpcrn, West Philadelphia, Pa., April 12, 1933. REX ROY:— 36,340 (United Registration Bureau), and 21,760 (To- bacco World). For cigars, cigarettes, cheroots and tobacco. Reg- istered February 9, 1911, and February 24, 1911, respectively, by the American Litho. Co., New York, N. Y. Through mesne trans- fers acquired by Alexander P. Hahn, New Orleans, La., and re- transferred to Consolidated Litho. Corp., Brooklyn, N. Y., March 19, 1935. LITERARY DIGEST:— 2.S,535 (U. S. Tobacco Journal). For ci- gars, cheroots, cigarettes and cigarros. Registered May 1, 1902, by The Heitmann-Kloet Co., Dayton, Ohio. Transferred by The Louis Heitmann Co., Dayton, Ohio, successors to the origmal regis- trants to the American Box Supply Co., Detroit, Mich., February 14, 1922. The importance of pipe sales to the progressive retail tobacco merchant is being emphasized here by the manv attractive window displays to be seen about the center of the city. Despite the fact that production of manufactured tobacco (smokinj^ and chewins:) suf- fered quite a decrease during the month of March, ac- cording to Government report, the sale of pipes is in- creasing steadily. Send Two Dollars, with the coupon below to The Tobacco World, 236 Chestnut ^, Phila., Pa., and get your copy twice a month for a year. Name. Street No.- P.O^ MAY 15, 1935 LIBRARY The importance of attractive arki dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phila.. Pa. AUTOKRAFT BOX CORPORATION Hanover, Pa. Cincinnati, Ohio A ^ LIMA OHIO York, Pa, Chicago, lit. Detroit, Mich, Wheeling, W, Va. H '4 «* K^, -^^^miiHiiiiiniiniUHiiiiiiii PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST. ^HILA. PA. THE TOBACCO WORLD Vol. 55 MAY 15. 1935 No. 10 T HAS been a frequent contention of Thk Tobacco World that the cause of the faihire of numerous co-operative efforts of the indus- try in the past was the lack of organization. Every attempt on a big scale to stimulate any depart- ment of the business was doomed to failure because the business was not properly organized. But, if NKA has had no other good eflfect in the tobacco industry, it has certainly produced the one outstandingly bene- ficial advantage of organizing all branches of the in- dustry for the first time in history. So it ought to be possible for the industry to do things in a concerted way. Getting down to something specific, it ought to be possible for the tobacco people to make as much of F'athcr's Day as the florists, candy manufacturers and those interested in the sale of all kinds of women's wearing apparel, have made of Mother's Day during the last quarter of a century. Ct3 CS3 Cj3 • ISTEN to what William A. Ilollingsworth has to say: *T have felt for a number of years that Father's Day has been a neglected op- portunity for this industry— particularly the cigar division. I believe that the trade now has a per- fect set-up for capitalizing 100 per cent, on that event. If the manufacturers will pay the costs of material, delivery and publicity I can promise that our organiza- tions will handle thedistribution and display and wdl effect a nation wide coverage. We, the retailers, are prepared to put everything we've got to making the public tobacco and cigar-minded for Father's Day. Moreover, I would be willing and glad to give my own time and personal efforts to the campaign and to dis- cuss the project personally with the manufacturers. I feel confident that the time has come when the indus- try can cash in to a very profitable degree on the Father's Day idea.*' tj3 Ct3 Ct3 ATIIEB'S DAY occurs on Sunday, June 16th. If the manufacturers, distributors and re- tailers are alive to their opportunity, there should be a substantial rise in the sales of all tobacco products during the entire week preceding that event. Assuredly, there is no gift to father more ap- propriate than a box of cigars, a carton of cigarettes, a pipe or a tin of tobacco, depending on his smoking habits. The Retail Tobacco Dealers of America, Inc., will get behind any movement to boost sales of tobacco products in connection with the national observance of Father's Dav. Here's hoping for a concerted effort to make that annual day and the week preceding it stand out as a red-letter period in the calendar of the tobacco industry. S USUAL, Bayuk is, at its own expense, pro- moting the sales of cigars generally as part of the celebration of Father's Day. In fact, in its current advertising to the trade, the com- pany is advocating the pushing of cigars not only for Father's Day, but for Memorial Day, which precedes it, and for the Fourth of July, which follows it. ''Make Hay While the Sun Shines" is the caption under the cartoon in the Bayuk Bulletin, boosting cigar sales gen- erally on those three holiday occasions. The copy un- der tiie cartoon is so simple and withal so effective, that we repeat it here: Cj3 Ct3 Cj3 AY 30TH is Memorial Day. This isn't news, but it should be a reminder to every wideawake retailer of cigars. May 30th is the first of the summer 'hay making' days when box sales go up with a rush, provided — provided you give them a push. On the heels of Memorial Day comes Father's Day— then the Fourth of July, the long weekends, the auto trips, the two-week vacations — when every cigar customer is a live prospect for a box of his favorite sm(»kes. Let's start figuring on what we are going to do in the way of Memorial Day and Father's Day displays. How* are we going after the weekend box trade! Come on. The heydays of box business are upon us. Let's make hay while the sun shines." UR glance at the current issue of the Bayuk Bulletin served to impress upon us again the constructive altruism of this company's trade paper advertising. Its one page this week contains a snappy description of the difference between an order taker and a salesman; a i)aragraph on the folly of a salesman clowning about his house; the tip to keep track of a customer's vacation period, in order to sell him a box to take away with him; an instance of a commonsense w^ay of handling relations lietween salesman and sales manager ; a suggestion to put up screen doors and to brighten up with a coat of paint; a paragraph telling how one retailer sells more soft drinks by advertising "Cold, Pure Water Free"; a eulogy of "Fresh" as a great selling word; descrip- tions of good salesmen in the present instalment of the interesting "Confessions of An Old Timer"; and a note about the smart tobacconist who hung over his door the sign, "Through This Door Enter the Best People in the World — My Customers!" All this in addition to the cartoon and text promoting the coming three holidays as occasions for selling more cigars. Nobody can overestimate the helpfulness of that kind of trade paper advertising. TU^ TORACCO WORLD (esUWUhed 1881) is published by Tobacco World Corporation; Hobart B. Hankins. President and Treasurer: GeralPB HanWns i^eT^ olce% Chestnut Street. Phifadelphia, Pa. Issued on the 1st and 15th of each month. Subscnptions ava^ able only to thSe engaged ta the tob«co industry. $2.00 a year 20 cents a copy; fore,^, $3.50 a year. Entered as second-class ma.l matter. December 22, 1909. at the Post Office, Philadelphia. Pa., under tb€ Act of March 3, 1^9. IIK tobacco iiuliistry has a ]H'rsoiial intorost in the dedication of the new United States Post- office in Phihidelphia, on the west hank of the SchuvlkilK at Market Street, through the cir- cumstances that the i)ostniaster of Phihulelphia is a former honored and respected ci-ar man. 1 ostmaster Jost.])h P. (iaUauher was vice-president and sales di- rector of the tirm of AUen K. Cressman's Sons, nmnu- facturers of the Manuel ci-ar, and was hiter a"^^<>t'i- ated with the Mazer-Uressman Cigar Co. and Otto Eisenlohr & Bros. Of recent years he was vice-presi- dent of the Kichard A. Fok^y Advertising Agency. Ci"ar men will be among the mo>t enthusiastic well wishers of Postmaster (Jallagher on the occasion ot the dedication of the handsome new Philadeli)hia post- oflice on May 25th. Cj3 Ct3 Cj3 OBACCO pco])h' generally are hoping that the heariim> on Hie c the chaim('< pro]H>sed in the ameiuhnents. CIGAR TOBACCO CONTRACTS OFFERED GROWERS NOT PREVIOUSLY SIGNED HUDCCKHS of tiller ami Innder types n( c'lgnv- leaf tobacco in the New Hnglaiid, IViinHvl- vania-Xew V(»rk, \Vi>ctment contracts, the Agri- cultural Adjustment Administration announccMl today. State and conntv agricultural agents will announce the time and place for non-contract siiniere to sign up in each countv in the areas affected. The 22,62!» con- tracts now in eflfect represeiil a].pn.ximately !>2 per cent, of the number of grow«'r> of liller and binder type- of cigar-leaf tobacco in tiiese regions. New signers will be required to sign both the con- tract and a rider to the contract. The ridut was required as part of the contract of pro- ducers wh<» signed in 1934. This rider offers pro- ducers choices additional to those offered in the original contract for detennining base acreage. It also requires additional perfoimance on the part of the producer. Rates of payment for 1935 to producers subject to the rider will be higher than to producers not subject to the rider. In order to gi\<' all qualified jiroducers an oppor- tunity to take advantage of the terms of the rider, producers who signed contracts in 1933 but did not execute the rider in 1934 may sign the rider during the same period, April 17th-*May 4th, that previous non-signers may sign contracts. TOBACCO MARKETS CLOSE HE marketing of tobacco in the fire-cured dis- tricts of Kentucky and Tennessee was brouglit to a close s(miewhat earlier than usual this year. The "Eastern" district markets, (1arks- ville ami Springfield, Tennessee and llopkinsville, Ky., ^vere closed for dailv sales on May 3d, l)ut the buyers and Feileral state graders remained on hand tor suc^i clean-up sales as might be necessary during the week ending May 11th. , \n unusual amount of wet weather occurred dui- incr the marketing season. The Bureau of Agricultural Erommiics reports the volume of tobacco c(mnng to market in soft order became so large that at ^larK- viUe and Springfield buying was suspended lor two weeks during Alarch to facilitate the proper handling of this tobacco at ])rizeries. , , • ♦! Prices to growers broke rather severely during the latter part of the season, says the bureau in a review of the situation. During December, .lamuiry and l^eb- ruarv r.rices bv grades showed substantial advances over*li»3:M934*averages, Imt during the latter part ol Februarv buving for French account was ijractically discontiiiued'and this fact is consi«h-red to have l»een partially responsible for the subse.pieiit decline m jirices. How to Sell Cigars Points From The Bayuk Offices VALUE OF UNSOLD TOBACCO OK MS on which producers may make applica- tion for appraisals to determine the net sak value under adjustment contracts of unsohl Burlev, fire-cured or dark air-cured tobacco of the 1934 crop have been sent to county agents by the Agricultural Adjustment Administration All ap- plications for appraisals must be filed with the county agents not later than May 31, 193o. It i. iHce--varv to establish the net sale value ol this unsold tobacco in order to determine the amount of the second adjustment payment under these con tracts The second adjustment pa>nnent is based on the net sale value of the production of the cimtracting producer. Not all producers of these tyi)es of tobacco have sold all of their production permitted to be sold imder the contract. In the case of tobacco which has not been sold ovei an auction warehouse floor, to a licensed dealer of leaf tobacco or to a processor of tobacco, the procedure to be followed in making appraisals is essentially the same as that followed last year in making appraisals of th,* 1933 crop. ^ , u 4%, Application for an appraisal must be made by the producer on the prescribed form which will be made available bv countv agents. The appraised value ot unsold tobacco will be established by a (piahfied ap- praix r under the supervision of the Administration s tobacco section. If the producer elects to have such appraisal made, the valuation determined shall be used in calculating the amount of the second adjustment payment and it is not subject to change upon subse- quent sale. ,. . - . 1 Producers who make application for an appraisal of anv portion of the 1934 crop agree to have an ap praisal charge deducted from the second adjustment pavment. The charge will be at the rate of 40 cent-^ per 100 pound.^ appraised, provided that the total charge shall not be less than $1 nor more than $5 for any contract. Th* Tobacco World Salesman: Mr. Dealer, you'd rather make a $o sale than a $3 or $4 sale; a $3 sale rather than a $1 or $2 sale; a tw^enty-five-cent sale rather than a five-cent or ten-cent sale, wouldn't you? Dealer: Wh\ certainly, who wouldn't! Salesman: Sure, you would, but, I tell you, now- adavs we've got to go after what we want-if we don t the other fellow does and we're out of luck. Now take the nice business you are doing on Bayuk l»l,illies_trulv, vou couhl sell a heap more and all it reciuires, if vou will pardon a frank remark, is a siu- eeie elTort and when you sell more Phillies, don't forget vou make more money. JiOt of smokers come right in your store— pick up one or two Havuk Phillies, pay you five cents or ten eents, get vour *'Thank you" and walk out. Do you think that'the average cigar smoker smokes only one or two Bavuk Phillies a day! Of course not— he smokes \\\'v or ten or more but in many instances ho buvs onlv (»ne or two from you. Where does he buy the rest of tliemf Sillv cpiestion, because what good wouhl it do to know where he buys the rest ot them if he doesn't buy them from you? That's the big point and just bi'tween you and me, what (h) you ac- tuallv e tempted to buy live and further- moVe to tell him of the convenience ot a ^ »ve^ack. Put the Five I'ack carton right alongside the Ik)X ot Bavuk Phillies or attach a Five Pack to lid of box. GHA&UE BOND ILL Charlie Bond, well known tobacco agent for the Philippine Oovemment, has been confined to his home on account of illness for the past week, and his many friends are wishing for him a speedy recovery. Dave Morris, who is associated with Mr. Bond as tobacco agent for the Philippines, has just returned from a trip covering most of the western portion of the country in the interest of Manila cigars. Mss t$, 19S5 ()\M\ up one Five Pack and display the actual cigars themselves. In that way smoker Sees the five Bayuk Phillies—he Sees they Ahe tlie same as those in the box. i.1, . , Say, Mr. Dealer, let me tell you something that s mighty interesting. . . Bavuk— the folks who make Bayuk Phillies in the world's largest anayuk Phillies were ijurchased and in each instance ])ro])er change was handed back. In ten stores out of ten stores just one or two Bayuk Phillies were bought. Then the buyer went into ten other stores, con- ducted by retailers who are looked upon by envious competitors as being smart merchants. A twenty-five cent piece was laid on counter to show the dealer that the BrvKn did have a quarter and same procedure fol- lowed as in the other stores. Xow, get this, Mr. Dealer. In eight stores out ot tlie>e ten the buver was diplomatically solicited to buy a Five Pack. Those eight dealers out of ten couldn't <,.e the sense of letting buyer spend a nickel in their >tf. Sacks & Co., was in town last week visiting John Wagner & Sons, an Monroe Street, where they are now located in a larger and strictly modern building. Mr. Lemlein is expect- ing to start on a trip through the middle western terri- tory this w^eek, where he will visit distributors of his brands. Trade Notes Paul Brogan, head of the Vahn & McDonnell or- ganization, returned to his desk last week after a short illness which contined iiim to his hk exceedingly bright for a big year on A. & C.'s in the Philadelphia market. Sam Aalc8men and thus temporarily rtise»e$ his job. One Loafer in a sakM oi^anization can ruin the whole sales organization . . . aside from any other feelings, I cannot afford to keep a Loafer and preserve the morale of the Non- Loafers . . . let the Loafer get a Job calling out stations on an ocean liner." (CdntinMccl m next column) The Prevaricator "As for a Prevaricator, to be deli- cate in abstaining from using the correct word, I'd almost as lief have a leper for one of my salesmen. In a few words, I sum up a Prevaricator a.s the salesman in whom you place the least dependence, and it is th^ salesman in whom you place the most dependency that goes up and up to success. If a salesman does wrong (and who doesn't occasionally) he stands a better chance with me to hold his job by telling the truth than by dodging the truth ... the worst he gets out of being in a jam, is to still hold his own self-respect. If a sales- man doesn't want to always tell the truth for moral rea«w>ns, let him tell the truth for selfish reasons ... in the long run, he'll go further ahead." Mr. B. Was Right! of course, the aforesaid are not Mr. B's words verbatim but the mean- ing is just the same as he intended- he told me these things years and years ago and yet not a year has ever passed by that incidents in my own fife did not serve as an absolute en- dorsement of the correctness of his contentions. I've seen salesmen [and maybe at times was jealous or envious of them] who possessed one or all of the bad attributes pointed out by my boss, get Eromotions and at the time seem eaded for real success . . . perhaps, at times, too, I momentarily ques- tioned if true Honesty in all objectives had its reward ... I advanced this query to Mr. B. one Saturday noon at lunch. He replied, "Boy, 'Honesty is the Best Policy' ... I know some folks who tried both ways and now they say that the right way is the RIGHT wav." (to be continued) In hit nest in«ullment The Old Timer Milt how he conquered hi* tuge fright ■ad told hi* Ant order. Don't mitt it. If you've a«ar aold gooda, it wtll malM you ra>liva yoyr own first day ea iha firias On the heels of Memorial Day comes Father's Day — then the Fourth of July, the long week-ends, the auto trips, the two-week vacations — when every cigar customer is a live prosp«;t for a box of his favorite smokes. Let's start figuring on what we are going to do in the way of Memorial Day and Father's Day displays. How are we going after the week-end box trade? , , ,. u • Come on. The hey-days of box busi- ness are upon us. Let's make hay while the sun shines! AGREAT^SELLESG" WORD "FRESH !" There's one of the great- est "selling words" in the English lan- guage. , ,. - Salesman J. P. S. had just delivered an order of cigars to a druggist. "These are nice and fresh," the druggist commented as he opened up a box and put it on top of the case. "They ought to be,'^ said J. P. S. "They're right from the factory today. Say, Doc! Here's an idea! Why don't you letter a little card saying, 'Fresh from the factory. Try them' — and stick it on the box?" Doc did. Since then, this druggist never displays a box of these cigars without the "fresh" sign. He has found that it moves the cigars — and moves 'em quick. BEUEVE IN SIGNS? We do, when they are signs like this one, which News-sleuth Jesse Berger reports as hanging over the door of a cigar store: THROUGH THIS DOOR ENTER THE BEST PEOPLE IN THE WORLD— MY CUSTOMERS! Xhere — in a nutshell — is the phil- osophy of John Wanamaker, Marshal Field and every great merchant who ever lived. BAYlIt BBANUS BUILD BUSINESS I Bayuk Phillies (BAYUK Pim.AI>tl.PHIA PKBflCrO} Havana Ribbon Mapaciiba Charles Thomson Prince Hamlet BRITISH MARKETS I if: Tobacco Division, Department of Com- nu'vce, has made ])nblic a report of the British market Wn- American tobacco by Alfred Nut- tin«»- (Merk, American ("onsnhite General, Lon- don, which "states that a fair general business in Amer- ican tobacco was transacted during March, 1J35. Imports totaled (Ml hogshead, consisting of 61o4 \ ir- rrinia leaf '^H'J Vir-inia strips, 3:^5 Western leaf, and ISO Western strips. In March, 1034, total imports were C)'">08 ho<>-sheads, com])rising 56r)4 Virginia leat, 414 Vir- Jnia strips, 47 Western leaf, and 93 Western strips Deliveries duriuir March totaled OOoG hogsheads, compared with 9203 hogsheads in ^larcli, If-'^^; «"(^ consisted of 8453 Virginia leaf (7691 in March 1934 , 1176 Vircrinia strii^s (1090). 153 A\ estern leaf (210), 173 Western strips (210), and 1 ^faol'-^ml' ^l^^-- (3). Durin"- the first three months of 193o, imports ot American tobac<'o amounted to 22,038 hogsheads, com- prised of 16,371 Virginia leaf, 4867 Virginia stnps 406 Western leaf, and 394 Western strips. In 1934 the total was 25.614 ho-sheads, of which 23,701 were ^ irgmia leaf 1481 Viririnia strii.s. 336 Western leaf, and 96 Western strips. Deliverie'^ in the three months of I93o ao-trreo-ated 27,830 hogsheads, as comiiared with 26,091 a vear a-o, and consisted of 22.939 Virginia leaf (22,- 175) 3848 Vir-inia strips (2734), 473 Western leaf (553), 568 Western strips (627), and 2 Maryland, etc, ^'^' Stocks on March 31, 1935, stood at 162,512 hoffs- hoads. compared with 162.349 at the end ^^^^^f^^'^^^- \^;?^' comprisinj 114.112 Vir.Hnia leaf HH 947) 40.3 3 Vir^ Hnia strips (33.924). 2576 Western leaf (3814) 5502 Western strips (6646). and 9 ^Maryland, etc. (16). MEETINGS POSTPONED ODP] Authorities for the Cigar Manufacturing Industrv, the Wholesale Tobacco Trade, and the Retail Tobacco Trade, have issued a joint notice announcing that the tw.. luiblic hearings scheduled bv the National Recovery Administration in Washimrton on May 13th and 14th on the sub.iect ot proposed moditicatioii nf the Cigar Merchandising Plan and miscellaneous amendments to the C igar Man- ufacturing and Retail Tobacco (^odes, have been post- poned pending a decision by the t'onrt which should clarifv manv current uncertainties. . .- e The Tobacco Code Authorities express the beiiet that the decision of the Supreme Court will be of ma- terial assistance in the proper wvision of the respec- tive Codes to the best interest of the cigar industry. As an earlv decision is anticipated, it is expected that the hearings in question will be held in the near future. The trade will be advised of the exact dates as soon as they have been fixed. COMPLAINTS COBMITTEE APPOINTMENTS HE following were selected to fill existing va- cancies on the Trade Practice Complaints Committee of the Cigar Manufacturing In- dustry: Fred Hach, Jacob Lampert Cigar Co., St. Louis, Mo!; Peter N. Jacobson Peter K Jacobson Cigar Co., Davenport, Iowa ; Sam Goss, E. Goss & Ca, San Francisco, Calif. ; and G. J. Mendelsohn, M. & N. Cigar Manufacturers, Inc., Cleveland. PHILIPPINE TOBACCO DECREASES ROIM the annual report of the Governor Gen- eral of the Philippine Islands, just issued, it is learned that tobacco products exported dur- ing the vear 1933 dropped to 1«.355,787 pesos from 12,800,118 'in 1932, showing a decrease of 2,444,- 331, or a ditTerence of 19 per cent. The value exported during the vear was the lowest since 1926. The prm- cipal markets for tobacco products are the United States and Spain. A considerable decrease of 21 per cent, was reg- istered in the importations of tobacco products, ihis item constituted 3 per cent, of total imports during 0 vear, the value of imports in 1933 being 4^34,596 pes<;s as airainst 5,380,142 in 1932, shoNvrng a difference I,f 1 l.'')l,r)4(). About 98 per cent, of the total imports came from the United States, while the remaining 2 ],er cent, were supplied by the Dutch East Indies, China, and other countries. TOBACCO CONDITIONS IN CUBA The crop of Cuban Part id wrapper, which has been excellent in both quality and (luantity this vear, was in the process of fenneiitation m March. How- over the continued drought, which has benefited this particular tobacco, has been a great drawback to the tobaccos of other zones, as, although they are cured tliev cannot be stacked for fermenting on account of their drvness This condition exists to a certain extent at the en16 317 34 up to April 1. Processing tax collections reported up to April 1, totalled $42,494,098. Tkt Tohoeeo WofU itMadt bw G. H. I'. Cigar Co.. Inc., Philm. Trade Notes Yahn & McDonni-ll report a marked increase in distribution and sate of Briggs smoking tobacco (P. Lorillard Co.), which is attrihutod largely to the pro- motion put behind tliis high quality pipe mixture (hiring the past month. James J. lleaney, American Tobacco Co., was in town this wet'k visiting bis many friends in the trade who were pleas«Ml to greet him after his recent ilhieas. ^fr. Heaney is again in gootl liealth and was introduc- ing a new packing of Corona Coronas, Corona Chicas and Corona Triads, all in a new lacqueretl tin, cedai lined and containing ten cigars. to A mass meeting in protest of tlie proposed Penn- sylvania Sales Tax was held at the Hotel Majestic on Monday afternoon, which was well attended. By a unanimous vote of tlie meeting representativts were • lispatched to Ilarrisburg before the meeting ae passed over a Prudential veto. Cj3 C33 CJ3 EMOCEATIC leaders at the Capitol are se- cretly working on plans to get Congress out ot Washington within seven weeks, it has been Despltrthe insistence of President Roosevelt that Congress enact all of the legislation which he has plac^ hi the -must- category, it is understood he w^ll not ™e adjournrnent^at such time as his leaders believe represents the Umit of the members' endurance represents m^ p^^,^.^^^^ ^^^ indicated his willingness to keep Congress in session throughout the summer it necSry to get his program through, it is realized fS any VtemV to do so would result in open rebellion which would not only preclude the possibihty of enact- n^ much of his legislation but might also involve he adoption of measures to which the Admimstration "^IdminStn leaders at the Capitol belie.e that many of the pending measures could be laid over until Tkt Ttbmeo WoHd next January without detriment to the country. Fur- ther, in the light of Supreme Court opinions on New Deal legislation, they believe it would be well to give many measures more intensive study than would be possible this session and thereby possibly avoid further rebuffs by the courts. ..u- ,. If Administration leaders make known w^ithin the next few weeks their decision to adjourn early in the summer, Congress will begin to move at a much swifter pace. At present, the Senate is devoting much of its time to talking to death measures which the President feels should be enacted without delay. C!3 Cj3 Ct3 ESOLUTIONS protesting many of the recov- ery activities of the xVdniinistration and urg- ini*- a retreat from the threatened regimenta- tion of iiulustrv were adopted this month at the annual con%'ention of *the United States Chamber of Coninierce. , , .1 American l)U^ino8s, as represented by the organi- zation, is hiuhlv critical of the New Deal, it was in(h- L-ated l)v addi-i'sses wiiieli niarked the convention as lielinitely s])littin,i,^ with the Administration on practi- callv everv major step in the hitter's program. The chami)er voiced the opinion that the Industrial Kecoverv Act as now written shouhl be allowed to ex- pire in \]\uw but that sul)stitute legislatir.n should be enacted for a delinitelv linnted period, under which m- .lustries actuallv engaged in interstate commerce could voluntarilv at codes coverinu: minimum wages, msix- inmm hours and al)olitit)n of chihl lal)or. The legisla- tion, it was held, shoukl also iK-rmit agreements be- tween cumpetitors which, ui^n receiving governmental approval, would Im' free from the peiialti."s nf the anti-trust laws. . . '*The collective bargaining provisions ot the pres- ent law have di'linitelv (lispn)ved their worth," the resolution dochm-d. "Further, we are of the opinion that effort- to «uf«)rc(' obedience to cades V»y extra- jutlieial methods, such as the Blue Eagle, withholding or withdrawal of (Jovernment contracts, and appeals to pul»lic prejudice, are contrary to our national tradi- tions.*' , . The organization went on record as favoring sup- port of the recipnical trade agreement policy, but de- manded the ostablishmeiit of some formula to assure that no important American industrj' be menaced by destructive foreign competition. f. , * In a rt'solution on the 8elf-rcgulatif)n of industry the chamber criticised the establishment of agencies under governmental control to carry on activities recog- nized as proper functions of trade associations as limiting the field and functions of the latter, retarding the self-organization and self-government ot industry, and handicappiiw mutual co-operative action for the Intiefit of industry and the public. "RED TEAILS" OOAST-TOOOAST The **Red Trails" radio program, sponsored by the American Tobacco Company, is now being heard on a wast-to-coast network. The original number of sta- tions on the NBC chain carrving the program has been more than doubled, while time has been shifted from Thursday to Tuesday night May IS. 1935 PROFIT BY THE NEVIT DEMAND FOR OLD GOLD A new heavy demand for Old Gold 1$ sweeping the country. New dealers especially have sensed this trend. They are not only stocking-up, but playing-up Old Golds. The makers of "America's Smoothest Cigarette" are cooperating with a new line of timely win- dow cards and other helps that every Old Gold dealer should have on display. Ask your jobber to help you seH more Old Golds. p. LO R I LLAR D CO., INC. f«lgb(ifh«d 1760 lit WIST 40TM STtllT NIW YO«IC CITT TOBACCO TEADE OEGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNrrED STATES .. .^ew . „,.. - • C" vV ••■^*'""" "^"'"'^^eSl^iJiS? MAJ. GEORGE W. HILU New \ork. N. Y V icePre'id"! GEORGE H. IIUM.MELL. New York. N. Y V cep'" d"* H. H. SHELTON. Washington DC V ct-Pres dent WILLIAM T. REED. Richmond \a Vi«-Pre.ident HARVEY L. HIRSrr. Philadelph.a. Pa ^^.Trelsurer fSli^i^w^DrNei'Y^;k.N;Y;v.;..:-^nn.^«^ ^ Headquarter*. Ml Madison Ave., New York City RETAIL TOBACCO DEALERS OF AMERICA. INC. WIIXIAM A. HOIXINGSWORTH.23J Broadway New ^'J.J^/vice-.f ":!'«; ri IKKOKD N. DAWbON, Buffalo. N, l caecuuve Tr«.iir«r JAMES C THOMPSON. Chicago. Ill Ireasurer ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H DUYS. Kew York City MILTON RANCK. Lancaster. Pa. D. EMIL KLEIN. New York City LEE SAMUELS. New York City President ..First Vice-President Second Vice-President . . . . Secretary -Tresittrtr NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN. l»Grunp.n Ave Newark. N. J. •; ■; ■••p^^ ALBERT FRFtMAN. New York K. Y ;■:... Second Vice-President IRVEN M. MObS. Trenton. N. J. SecreUry A. STERNBERG. Newark. N. J. RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA r^,i^*"»"^ President ^54il^a^l N:MerVineSt:^n*defpiia;*P.: SecreUr, THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS. INC. r ASBURY' DAVIS. Baltimore. Md. - • •■•••■;-Vj-v"'' SecreUry JOSEPH KOLODNY.JW) ^«t»» Ave.. New York. N. Y. -y ■■-:: — ^^^^^ GEO. B. SCRAMBUNG. Oeveland. Ohio UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION Secretary {PeMIa/h.^YAFFE; m Fe'. Bttiidint.' Pbl'ladeiphi.. P. X3 I u Eatablithed 1886 €t BEST OF THE BEST 99 M.,ui.c»«r,d b. ^ SANTAELLA & CO. Office, 1181 Broadway, N«w York City FACTORIES: Tampa and Ktp West. Florida OUR HIGH-GIADE NON-EVAPOEATINO 1^1 r^ A R FLAVORS ^ Make tobacco iii«Uo%« and smooth In characUv and Impart a most palatable flavor fUVORS FOR SMOKING aid CHEWING TOBACCO Write for Ll.t of r»«vors for Special J^"!*!-,--- BMTUN. ABOMATWEl. BOX FIAVOM. PASTE SWEETENEO FRIES & BRO.. 92 Reade Street. New York [ Classified Column The rate foi this column is three cenu (3c.) a word, with a minimum charge of »eventy-five cent* (75c ) payable •trictly in advance POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large following. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON Automatic Machines, wants a position. Also instructs beginner*. Address Box No. 558, "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to restauranU and cafe trade. Would like to specialize in 5 and 10 cent cigars under my own brand. Manufacturers communicate with me in reference to worth-while line. Hugh Donowick, 242 Milnor Ave^ Lackawanna, N. Y. FOR RENT 30,000 SQUARE FEET DAY-LIGHTED FLOOR SPACE IN A 3-story and concreted basement building adjacent to P. R. R. freight sUtion in York, Pa. Building of sufficient strength to accom- modate at least 50 cigar-making machines per floor. See A. Kauff- Tpati ic Bro,, York, Pa., for inspection and details. HAVANA CIGARS BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT LOVE— Adopt as your slogan, "Kiss your beer, but knre yow ci- .. Specially those Havana blended, "Good to the latt Pirii," ittfactured by A. Ramires At Co., Post Office Box U68, Tampa, Vli. Write Uiem for puticalars today. Tobacco Merchants' Association Registration Bureau, new^york Schedule of Rates for Trade-Mark Services Effective April 1, 1916. ison Ave. CITY Registratiou, Search, Transfer, Duplicate Certificate, (see Note A), (see Note B), $5.00 1.00 2.00 2.00 Note A-An •Uowmnce of $2 will be made to membera of the Tobacco M«r- ch«nt>' A«ioci«tion on each regittration. . Note B-If a report on a aearch of a title necetaiUtei the reportlns of i^ than ten (10) titlet. but let* than twenty-one (21). an additional charge of Use Dollar (11.00) will be made. If it necewitatet the reporting of more than twenty (20) titlet. but le.. than thirtyone (31) an additional cl«rge of Two DoIUri ($2.00) will be made and ao an additional charge of One Dollar (fl.(w> will M made for every ten (10) additional titlea oecetiarily reported. REGISTRATIONS FROSTY: — 46,452. For all tobacco products. Crimson Coach, Inc., Toledo, Ohio, December 20, 1934. DE ANZA: — 46,453. For cigars. A. Sensenbrenner & Son, Los .Angeles, Calif., July 27, 1934. SEZ-I: — 46,454. For smoking and chewing tobacco (cigar clippings). Harry Petrosky, Philadelphia, Pa., May 6, 1935. FROSTIES: 46,455. For all tobacco products. Crimson Coach. Inc., Toledo, Ohio. December 20, 1934. TRANSERS EL RETINA:— 22,388 (U. S. Patent Office). For cigars. Registered January 18, 1921, bv Basford Cigar Co., Maryville. Mo. Trans- ferred to A. & R. Cigar Box Co., St. Louis, Mo., April 23, 1935. RETINA:— 30,618 (Tobacco World). For cigars. Registered Jan- uary 9, 1915, bv the Central Cigar Box Co., St. Louis, Mo. Trans- ferred to the Basford Cigar Co., Maryville. Mo., and re-transferred to the A. & R. Cigar Box Co., St. Louis, Mo., April 23, 1935. PRIME PUFFS:— 31,347 (U. S. Tobacco Journal), ff, cigars, cigarettes, cheroots and tobacco. Registered February 14 19()6. by Morris Kraus. New York. N. V. Transferred to Glorifier Cigar Co Inc.. New York. N. Y.. and re-transferred to Alliance Tobacco Co.; New York, N. Y., December 21. 1929. SAN DOVAL:— -46,440 (Tobacco Merchants Association of the U. S ) For cigars onh . Regisf^red October 4. 1934, by Consolidated Litho. Corp., Brooklyn. N Y. Transferred to A. Siegel & Sons, Inc.. New York. N. Y.. April 12. 1935. Y'ahn & McDonnell, 617 Chestnut Street, distribu- tors of fine cigars and tobacco products, report that the Medalist Junior is meeting with a constantly increas- ing demand from smokers who appreciate quality, since their recent reduction in price. The Blackstone Yankee, retailing at two for fifteen cents, is also enjoying a steadily increasing distribution and sale. Send Two Dollar*, with the coupon below to The Tobacco World, 236 Chettnut St,, Phila., Pa., and g^ ytmr copy twice a month for a year. JUNE 1, 1935 LIBFVAY mmssmnimm % The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phila,, Pa. Hanover, Pa. Cincinnati, Ohio AUTO — 4 AFT BOX CORPORATION Jc"^,/;^ Lima Ohio Detroit. Mich. A NalioaWidc Sc^^'1cc Wheeling, W. Va. mm ililllllllllllllllllllllllllflTnnTTTTT PUBLISHED ON THE 1ST and 15TH OF EACH MONTH AT 236 CHESTNUT ST. PHILA.. PA. ( ! I :,. i; .1 i;, ynoi'i»T«*. C5o. Of course you want mildness in a tica- rette. And athletes lo whom \v: u!. hralthy nerves, "tondition an important insist on mildness. Lou Gehrig, baseballs Iron Man,'" says. "Camels are so mild thev never i;et mv wind." Gcrge Barker, former intertoUegiate Cf^s-country thampmn. says: "Camels are so mild, they don t cut my >*ind' in any way. " Bobby Walthour, Jr.. star of the sixdav bike grind*, says: "I've f« to have wind m bike facing. For my cigartfte I long ago chose Camels." Tommy Armour, speaking f ■ - • '• Bruce Barnes for tennis, an J Bet tor aquatic sports — all . « don t git \"ur 'vMnd.' Whmt this real niiUmss Citn mean to you! It means vou tan Mm.ke as in.4ny ( amels as y..u i.taNL. Athlete* say CanuTs (...stlicr t.ihaccos ^tver - , . • t r tire \»iur get Sour V* ind. GOOD NEWS! }HA( ( ( » ( OMFANY. Winit€»ii-Salefn. N.C. THE TOBACCO WORLD .>». 55 JUNE 1, 1935 No. 11 II H SUPREME COURT of the United States has declared NRA unconstitutional. On the face of it, that seems like a devastatinc of the leverence in whicli we hold that docu- ment, wv think of the various amendments later added to it as further safeguards of that original purpose. When an amendment later i)roves, in the opinion of the country at large, to be detrimental to that prinuiry pur- ]»ose it is voted out of the (Constitution, as was done in the case of the Eighteenth Amendment. Cj3 Cj3 Cj3 X the nuitter of NRA, however, the charge of unconstitutionality does not carry with it the charge of militating against the connnon good. The decision of the Supreme Court was leased on the following two points: first, that Congress had no institutional right to delegate to the President the l)owers conferred by NRA; and, second, that the B^ed- oral Government had no constitutional right to control itt//7rstale ct)mmerce, as distinguished froui iH^erstate eonnnerce. There is nowhere in the decision an intima- tion that the coiles of fair practice, as exemplitied in the establishment of maxinmm hours of work and minimum pay for that work, as well as the setting uj) of regida- tions regarding honest competition, operated against "the greatest good of the greatest number" — the un- derlying principle of the Constitution — and were, there- tore, unconstitutional. Cj3 £J3 Cj3 NE of the wisest men we have ever known used to say that there will never be a perfectly sat- isfactory compromise between Capital and I^abor as long as men are human. He believed that each side of the controversy would remain e<|ually culpable as regards standing in the way of attaining Utopia. Each side could see only its own rights and was blind to the rights of the other, with the result that there was constant battle Ijctween the two. If there is any truth to his belief — and current difTerences between employers and employees .seem to indicate that there in—we just cannot expect any movement which will have the unqualified approval of everyone concerned. T SEHMS to us that tlie smart move for any single industry to make right now is to study the operations of the last two years and com- ])are them with the two years innnediately pre- ceding. That should certainlv be a salutarv exercise for the tobacco industry in all its branches. Without going into the speciiic branches of the industry, it is immediately api)arent that, if the XRA has not done anvthing else, it has succeeded in reallv Organizing this important industry — one of the oldest and for- merlv one of the most respected in the countrv. W^e say "formerly" one of the most respected, because we are forced to admit that during the last decade and longer, the very lack of organization within the indus- try has caused it to lose jncstige as compared with young upstarts like the automobile industry, for in- stance, which has been thoroughly organized for its own benefit since onlv a relativelv few vears after its inception. When the automobile people want to put anything over, they are organized to do it, and they lisuallv do it because thev are organized. — ft — — ** — n O n Ctj Ct] Cj3 UT WIIP]X an important branch of the tobacco industry — the cigar division — has attempted to do anything in the way of promoting its product, it has lieen defeated in the very begin- ning because it has not been organized. Every promo- tion idea which has reon tin- unitv and representation with which the Na- tional Organiiation approaches the probk^msconi rout- ing the industry. United we are strong; individually, we will be weak and helpless. , , , , i . The Fathers' Dav program should be broadcast throughout vour territory. Impress upon every retail tobacco dealer in your territory the opportiinities tor business afforded bv Fathers' Day. Pass this thought alon<^ to vour local jobbers and local manutacturers. 1 look forward to meeting all executive members, and C^ode Authoritv representatives in Boston on June Iblh and 17th, and appreciate their efforts to make both the Convention and Fathers' Day an outstanding suc- ^ \ll mem1)ers of the tobacco industry are invited t^ attend the Convention of lU-tail Tobacco Dealers of America, Inc., at the Statler Hotel, Boston, Massachu- setts, on June IGtli, Sunday, and June lah, Monday. ^lark these dates. They will probably devek)p to be the most important da\ s in the anniUs of the tobacco industry's history. . The tobacco industry will have to deterinine how best to proceed either with or without the X. K. A. In either event, the moment will ))e a critical one, and vou should l..- in attendiuice U> help east the die which is certain to mark your economic future. Aside from its economic importance to the whole tobacco industrv, this Convention will be the biggest "get together "V»arty ever staged in the trade. Don t faU, to attend! Although the I'onvention is the annual meeting of Jietail Tobacco Dealers of America, Iik*., only one closed session will be held on Monday morning, all other se^s- vions will be open to any members of the trade, be they farmers, manufacturers, jobbers, retailers, sales- men, workers— .'1/i are invited to be present. Reduced fare tickets to Boston by boat or tram, ■iIm) hotel reservations may be secured by writing Re- )all Tobaeeu Dealers of Ameriea, Ine., 233 Broadway, Sne York at tj. _ ^ ^ , i. ^ If vou are a member of R. T. D. A. and cannot at- tend, if* you have not already done so, please send your prow to the coinmittee. Sunday, June Kith, is Fathers' Day. ^ . ., ^ Throu'diout the si-eoiid week ot June, Ketail io- bacconists'slHUild devnie part of their windows and counter displays to promote purchases tor Dad. I'athers* Dav will become a sales stimulant lor tobacco products* if you will only avail yourself ot the opportunity it alTords. Make ready now to do so. Talk up Fatiiers" Dav. Ask your manufacturers and jobbers to co-operate with you in this movement to popularize thi' day— recpiest special bathers Day window trims and window posters. The salesmen can and will help you to build Dads' Day into a sales booster. j^ . The onlv day most tobacconists "play up is Christmas, w-liile the Horist, the candy man, the cloth- icr the divssmaker, the greeting card printer, and even the butelier -play up" and regard many dny^ns afford- ij,g unusual sales opportunities, such as Mothers Day, Easter, Decoration Day, Thanksgiving Day, etc. This letter is being sent to more than a hundred thousand retailers of tobaee., products, iis well as every n.anufaeturer aiul jobber on the Assocation s list, it rverv member of the trade resi)onds to its directions, I'ather-^' Dav will deliver business to the tobacco in- dustry, and more than a million Dads will receive affec- tionate ami suitable greetings from sons and daughters. Pliilippine Exports Restricted HE Philippine Island Ikireau <»f Internal Reve- nue has announced that it would refuse to pass upon cigars shipped to the United States to be sold to jobbers at less than ltJ.5U, less 2 per cent, for cash. That restriction did not entirely cprrect the situation caused by price cutting on Philippine ci- gars, and a circular dated August 15, 1934, announced that the price to importers in the United States must not be less than $15.17 for cigars to be retailed at two for 5 cents. Special discounts or gift* of cigars, or anything else of value, was also prohibited. However, com- lilaints from the United States has indicated that there has still been price cutting on Philippine cigars, and the Bureau of Internal Revenue has issued a new circular dated April 3, 1935, indicating that it will refuse to pass on cigars for export to the United States, if they weigh over 13 pounds per thousand cigars and are retailed at less than two for 5 cents in the United States. In the future, applications for inspection must be accompanied by an affidavit certifying that cigars weighing over 13 pounds per thousand will be retailed 4 at two for 5 cents Distress mercliftndise will be ex- i.inptc"d,'but"must''be i.lainly marked as distress nier- c handise and must be passed on by one of the I hilip- pine ToV)aeeo Agents. It is not clear how the local manufacturers will be expected to regulate the retail price of their P^roduc^ in the United States, but presumably they wi I notify 1 heir customers that they cannot make shipment to any- one who cuts p r i ces. The tobacco market in the Philippine Islands is cmiet and holders are anticipating further price in- » reases. Several purchases are reported of La Union and Pangasinan toljaccos of the 1934 crop for IocaI con- sumption. 1 larvesting of the new crop has started m certain sections of Cagayan Valley. Bujnng of the lower grades commenced in early April m ha Umon. Estimated exports of raw-leaf, strips and scraps m April 1935 amounted to 1,193,(KK) kiloa, of whi^h Aus- Kong 27,fJOO, Japan 794,000, North Africa 54,000, En- rope P>9 W and the United States 139,000. Exports of cigars to the United States amounted to 17,736,000. r*# Tobacco World MIA. BAYUK EMPLOYEES DANCE ORE than two thousand enjoyed themselves at the spring dance of the Sunshine Club, a social organization of Bayuk employees, at the Broadwood Hotel. Earl Denny's Bellevue- Stratford Orchestra dispensed the dansa])alion tunes. It was a splendid success . . . Bayuk Phillies liaseball team defeated Wyeth Uhemical, 3 to 2, in a Philadel- l)hia Industrial League game. E. M. Hirst acriuitted himself in big league fashion in right lield, evoking rem- iniscences of the days when he used to perform regu- larlv in the spangles* as Eddie Collins ]iuts it . . . C. T. Herbert, Bayuk salesman, of Pec)ria, HI., wjis at head- quarters last week, familiarizing himself with the de- tails of all the operations at the factory in the produc- ti(m of Bavuk products . . . Eli Witt reports a gratify- ing volume on Bayuk Phillies from his Tampa, b^londa, headquarters annioking tobacco brand of Yahn & McDonnell, continues to enjoy a highly gratifying demand. James Ileatl, president of Benson & Hedges, and Maiiiiie Perez, of Marcelino Perez & Co., were visitors here last week, calling on the jobbers and retailers of their brands. William Duke, factory representative for the Pin- knsson Citrar and Tobacco Company, Savannah, Ga., \va< in town last week calling on Yahn & McDonnell, distributors of his product. James ^^c^nertv, of the Romeo y Julieta factory, Havana, Cuba, visited the jobbers of his product here last week. Mr. McGuerty reported an excellent de- mand for his brand. Herman Abrams, Medalist representative, is call- ing on the trade in upper New York State in the inter- est of his brand, and reports increasing demand for his product. Ben Lundev, Garcia y Vega representative, has returned from Ins recent visit to Baltimore and Wash- ington territory and is promoting the sale of his brand in'^Philadelphia territory. tel Mr. Butts, manager of the Bellevue-Stratford Ho- eiL^nr stand, reports a very noticeable increase in demand f<»r high-ffrade cia:ars*at his stand during the past few weeks. Another indication of business re- covery. The exhibit of John Wagner & Sons, wholesale liquor importers and also importers and distributors of flne cigars and tobacco products, at the "Philadel- phia on Parade'* fair, held in Convention Hall last week, was successful in attracting considerable interest and new business. The Future of the N R A By DONALD R. RICHBERG Chairman, National Industrial Recovery Board X jrXK IC), VXV.l whon tho National Industrial ^Kecovcrv Act was approved, the President stated tlie simple truth that the act was a chal- lenge to industry, to la])or and to our whole people-a ehallenire to -sink seltisli interest and im'c- sent a solid front a-ainst a connuon perd He stacd that the law i)Ut to our ^^ho\v people "the simple but vital test- 'Must we u<) on in nuiny K^'op^Ki?, disorgan- ized separate units to defeat or sliall we move as one great team to viett)ry*' " In the two vears which have followed we have en- o-ac^ed in a lireat" cooiierative movement for the rehabili- tation of tradi' and industry, for the improvement of the condition of the worker> and their standard ol liv- inir, and for the elimination of sweatshop wages, child labor and unfair eompetitive ])ractices. \ccording to the opinion of the Supreme ('ourt, the ron% who went to Lom«. ville in March, 1929, after servmg for several years a. vice-president of the P. Lorillard Company m New York, had been in the tobacco business for thirty years. He had been in ill health since December 1934. A native of Henderson, N. C, Mr. Gary was the .uu of Mr. and Mrs. Wyndham E. Gary. He is survived bv his wife, Mrs. Frances Fairchild Bacon Gary, for- merly of Madison; two sons, Wyndham F. Oa^y and Charles V. Gary, the latter of ^hi^^^g^J ^ff! daughters, Katherine W. Gary, SaUy Gary and Mary Lee Garv, and several brothers and sisters. He Was a member of the Louisville Bridge Com- mission and took an active interest in the r^nt fight on loan sharks. He was a member of the Pendennis Club and the Louisville Country Club. Honorary pallbearers were David »• Castleman, Col. James \\ Castleman, Gilbert Burnett, T. V^ Hart- nett, E. M. Stokes, George Cooper, B A. Banner George W. Matton, John R, I>ownmg, Julian P. V^ Winkle, A. C. Van Winkle, J. Van Dyke No-^a^^^ O'Brien, Jr., Col. Robert McBryde, J. H. Ruffin and A. P. Bohmer. Tkg T^bmf World *»U»|^ Wh«n two it company I don't nnak« a crowd i)am^au;t ^iclzu SOuiia lUCJCIiV tfM OMOr CENTiR grimy bottom leaves. I am IIAV Ymi wonder what makes met „ . oivi %t>u TJ^'M better friend. It's center leaves, made only of the mild, fra- « '^^'3, I spurn the sticky, bitter Uttle grant, expensive center leaves, top leaves. I tcom the coarse. I do not irritate your throat. ER LEAVES ST SMOKE \ •^«^ /mm /. 19^ AND DILL'S BEST AND NOW ON Columbia Broadcasting System Coast-to-Coast • Monday Nights See your local Monday evening program listings MODEL TOBACCOS U. S. Cigars Up 155 Millions in 10 Months Cigars : Class A — United States Puerto Rico . . Philippine Is. First 10 Mos. Fiscal Yr. 1935 . 3,333,081,460 + 47,474,875 — 167,387,520 — — Decrease -1- Increase Quantity 184,825,420 2,195,405 34,540,370 Little Cigars: United States Puerto Rico . Philippine Is. 157,829,680 — 1,94(),(K)0 — 16,800 + 30,666,307 680,000 16,800 Total.. • ■ • • 159,786,480 — 31,329,507 Total 3,547,943,855 + 148,089,645 ( 'ii^'flrette*' * " United States ..104,653,947,009 +11,321,991,097 3,183,570 - 766,230 aass B— United States Puerto Rico . . Philippiiw Is. Puerto Rico Philippine Is. . . 1,459,590 — 61,260 54,192,333 + 1,695,750 — 479,253 -f 24,526,148 669,350 291,919 Total 104,658,590,169 +11,321,163,607 Total. • • • • 56,367,336 -f 24,148,717 Class C— United States .. . Puerto Rico .... Philippine Is. . . Class D— United States . . Puerto Rico .... Philippine Is. . . JLOX81 ••.•>...• Class E— United States . . Puerto Rico Philippine Is. . . xoLai. I....... Total All Classes : United States . . Puerto Rico . . . . Philippine Is. . . 427,295,072 572,400 218,364 49,243,046 251,780 1,654 428,085,836 — 49,496,480 32,263,009 — hoOO -h 3,427 + 4,029,328 500 1,227 Large Cigarettes: United States . Puerto Rico . . . Philippine Is. Total Snuff (lbs.)— All V. S Tobacco Mfd. (lbs.) United States Philippine Is. Total 2,014,743 336,000 900 82,045,957 519,000 5,500 2,351,643 — 82,570,457 30,528,124 — 1,054,132 249,211,311 16 5,638,572 65 249,211,327 — 5,638,637 32,267,936 — 4,027,601 3,530,592 — • ••■«••• 1,745 — 871,257 ■ • • • • 1,231 «■•>••• 3,532,337 872,488 3,850,362,466 + 49,744,525 — 168,090,309 — 155,207,937 3,116,035 34,250,109 Grand Total... 4,(^,197,300 + 117,841,793 n PIGS AND PAT IN NEW SERIES ICK and Pat, blackface comedy favorites of the radio audience for several years, will be- gin a new series of broadcasts over the Columbia Network on Monday, June 3d, from 8:30 to 9 P. M., E. D. S. T. A repeat program will be broadcast from 11:30 to 12 midnight, E. D. S. T., to the midwest, south and far west. Supported by Josef Bonime's Orchestra, they will broadcast weekly there- after at the same time, under the sponsorship of the maker of Dili's Best and Model smoking tobaccos. The comedians will continue to broadcast humor typical of the southern negro in their ad lib style. Sup- porting the team, Bonime's Orchestra will present both popular and semi-classical music. Pick and Pat and Bonime are a veteran combination of talent Stocks of Leaf Tobacco Owned by Manufacturers and Dealers TOCKS of loaf tobacco owned V)y dealers and inanufacturers amounted to 2,346,630,000 pounds on April 1, 1935, compared with 2,434,- D.HOOO pounds on April 1, 1!K'>4, and 2,223,884,- (»(M) iM)inuls on January 1, 1935. This is a deerease in the total stocks of 88,324,000 pounds under the stocks of a year ago and an increase of 122,746,000 pounds (iver t'lie January 1, KKl"), stoeks. Stocks of ilue-eure0 pounds, compared with 78r),2n7,0(M) pounds on April 1, IJKU, a decrease of 53,684,000 pounds. Dur- hvx tlie lirst (piartcr (»!" l!).'].') fhie-cured stocks decreased !)1,7ame ])roi>ortion as on January 1. Stocks of fire-cured tobacco were reported as 231,- •J1S,000 ])oun«ls on April 1, 1935, conii)ared ^vith 226,- .-)SIMI00 pounds -m April 1, 1934, an increase of about 4V, million pounds. The increase for the «|uarter ap- iM'ar< about nornud considerinir the fact that this is the jMTiod durinir which the bulk of these types is niarki'ted. Vir-inia fire-cured. Type 21, stocks re- i.orted as :U,145,000 pounf Maryland tobacco on hand. One Sucker stocks on April 1, 1935, amounted to 40,823,000 ])ounds, slightly lower than a year ago and about 13 million pounds higher than on January 1. Oreen Biver stocks, reported as 37,235,000 pounds on A])ril 1, were onlv slisrhtlv lower than a vear ago and were a little over 7 million pounds hiirher than on Jan- uary 1, 1935. Virginia Sun-cured stocks were reported as 3,003,000 pounds on April 1, 1935, about a million and a half pounds lower than a year ago. Miscellane- ous Domestic stocks were reported as 1,718,000 pounds, and foreiijn srrown cigarette tobacco as 82,639,000 l)ounds on April 1, 1935. Cigar Leaf Tobacco Stocks undi TOCKS of American irrown cigar filler types amounted to 182,164,000 pounds on April 1, 1<>:',5, compared with 174,153,(M)0 pounds on April 1, 1934, a decrease of about 8 million ........... Tvpe 41, Pennsylvania Seedleaf, stocks oil April 1, 1935, were 93,578^M) pc.unds; Type 42^0^ Imrdt, 25,250,000 pounds; Type 43, /iinmer, 29,841,(KK» pounds: Tvp*' 44, Dutch, H,994,IHM) pounds; Type 4^ (kH,rgia ami Fh.rida Sun-grown, l,37r,,0(M> poumls; and TvTMr46, Puerto Hican, 23,125,(H)0 If »"<»^' The de^ tailed report bv groups of grades shows 134,0b4,0(M) pounds, or 73 per cent, of the filler types in the (. group as actual filler grades, and 45,312,0od to the laat Pi«, gMsirfactured by A. Ramirez & Co., Poat Offic* Bos llfii, T«nv«. fli. Write them for particuUra today. 4i Registration, Search, Transfer, Duplicate Certificate, (see Note A), (see Note B), $5.00 1.00 2.00 2.00 Note A— An allowance of $2 will be made to members of the Tobacco Urn- ebantt' Aatociation on each regiitration. ^, * Note B— If a report on a •earch of a title necesatUtes the reporting of iiwre than ten (10) titlet. but leas than twenty-one (21), an additional charge of Oae Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less than thirtyone (31). an additional charge of Two Dflwrs (12.00) will be made and so an additional charge of One Dollar (fl.ai) will M made for every ten (10) additional titles necessarily reported. REGISTRATIONS CHEWMOR:— 46,458. Tor plug, twi^t, smoking, scrap, fine-cut. snuff and cigarettes. Scotten Dillon Co., Detroit, Mich., March 8, 1935. CHEWMORE: — 46,459. For plug, twist, smoking, scrap, fine-cut, snuff and cigarettes. Scotten Dillon Co., Detroit, Mich., March 8, 1935. HOUPA DOUPA:— 46,461. For all tobacco products. Fred Spreen, Brooklvn. N. v.. May 24. 1935. TRANSFERS SPANISH MAID: — 41,604 (Tobacco Merchants Association). For cigar-^ and all tobacco products. Registered December 29, 1919. b^r J W Minnich Son & Co., Dallastown, Pa. Transferred to Ired t,. Druck & Co., Dallastown. Pa., and re-transferred to Schlegel Litho. Corp.. New York. X. Y.. May 10, 1935. COLWOOD- 46,374 (Tobacc. Merchants Association). I-or all to- bacco products. Registered October 6. 1934. by Const.hdated Litho. Corp.. Brooklvn. N. Y. Transferred to C ^o., Cincinnati, Ohio, and re-transferred to Garcia y \ ega. New \ork. N. Y., May 9, 193S. Frank Flani^^an, factory representative for this territory for M. Marsh & Sons, Wheeling, N\ . \ a., was ill toW last week and rei)ort.s a splendid demand tor Marsli ^Mieelinff Stogies and other brands of his eom- ] »any. Send Two Dollars, with the coupon below to The Tobacco World, 236 Chestnut St., Phila., Pa., and get your copy twice a month f<« ft f »r. Name. JState. J MM Phila,, Pa. Hanover, Pa. Cincinnati, Ohio 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. ^ — . — . ^ — . . M« .^ mw York, Pa. AUTOKRAFT BOX CORPORATION cucago. in. LIMA OHIO Detroit, Mich. A NAtioixWiAc Service Wheeling, W. Va. PUBLISHED ON THE 1ST AND 15TH OF EACH ^«ONTH AT 236 CHESTNUT ST. "HILA.. PA. I I • ,*,, i; .1 Ki-ynol'l- loiJ < Of course you want irnUncs^ in rette. A'-' uliUtiN i" whom healthy ;> important i!isi>t tui miUincv^. 1...U Gthrig, h,. ■ M.iii," George Barker, tijrmcr iincrtilituKitt to havu % What this rwal mildntss can mean to you! GOOD NEWS! u md SO MILD . OU CAN SMOKE ALL YOU want! 0?lMt^ COSTUER TOBACCOS ! ( . nu Is ..ri muli^ fr...n im.r.MORK EXPENSIVI' TOBACCOS — Iiirkish am! DiHiuMK — th.iri am other iMijiular brand. s ,, ,, HI K I 1 Nt il I !^ 1 • iH \< c < > « C »M^^^N^ . W iniCdn-Salcni. N C THE TOBACCO WORLD Vol. 55 JUNE 15. 1935 No. 12 ■^==g ITH the collapse of the NRA, the price struc- yUm ^"^'*^ "^ ^^^^ ^^^^^^ ^^"'"^"^ ^^^^ quickly dropped down to the same position it occupied before the advent of tlie Retail Tobacco Dealers Code which was expected and i)redicted by those who were 'familiar with that industry. The cigarette seems to have fared little better, except in isolated sections, where there is an apparently more intelligent and pro- o-ressive tvpe of retailer. It is hard to understand bv those who have the best interests of the industry at licart, how any group (,f business men can fail to see the wisdom of wi ing eo-operation in the upholding of a fair retail selling })rice. CS3 Ct3 CJ3 RICE structures are usually broken down by some selfish '^chiseler" who has a beautiful vision of corralling all the business in the world for himself, and he starts out to do just that However, he doesn't get along very far with his nT^^ rious schenie before other retailers in Ins neigh- orhood decide that they can't afTord to lose all their business and so they cut their prices to meet the con- pet it ion 'and in the end the -chiseler" not only doesn't do himself any great good, but ruins everybodv else in the same line of business. „ ., • xi c^\ An example of this is tersely set forth m the f o 1- lowing published statement by Bloomingdale's depart- ment store, in New York City: C!3 Cj3 tj3 HE newspapers print Bloomingdale *s name in connection with many stories about the cur- rent so-called ''price war" on cigarettes. The motion picture companies have requested per- mission to photograph the crowds ^..^^ J^f ^^ counter for the news reels, ^ven ^\ 1 Roger^ U^e comedian, has commented on the situation. It wouia htt fnnnv if it were not so dangerous. Yol are entitled to know the in«de «tory and no iust the obsen-ations of a reporter. Wlicn the retail o de was nptrt, Bloomingdale's continued to selc.ga- rotten at the former code minimum, %\.i» a canon the OSS limit that retailers themselves wrote into Ihe code We did not cut the price. Now it is and cents, thon 04 cents and so on down until we sold them at 64 cents a carton. They cost us $1.08. If you bought a carton at 64 cents, 60 cents of it went to the Govern- moiil for tlie tobacco tax alone and only 4 cents of it towards the cigarettes. Think of it! Ten packs — 200 cigarettes — bringing only 4 cents! A ridiculous situation. A dangerous situation. Tlu' ])ractie(» of selling a nationally known branded item at a loss to create the impression that all the thinu> ill a store are equally low in price is a trick as old as retailing itself. It's a smoke screen. The retail code, i)roparod by retailers, banned loss leaders and liniitcd the amount of loss. But the Bine Eagle is dead and already some of the short-sighted are celebrating its demise.' The spreading of this evil must eventually result ill lowered wages, lonucr workintr lioiirs and in all tlie (jther forms of chiseling which tlu' retail code tri«'p owner. We eaimot sub.scribe to this practice. There must be a limit to folly. We are marking these cigarettes at actual wholesale cost, $1.08 a carton, and plan to keep theiii at tliat ])rice until the present mania passes. We lielieve Americans are fair minded and level headed — and would appreciate you writing us whether you ap- prove our stand. Please don't phone— a post card will do! Cj3 (J3 Ct3 XSTANCES similar to the above have been cited many times previously, but the **chis- eler" is still with us, and we probably will not have such another opportunity to be rid of his kind for manv years to come, as was afforded bv the National Recovery Administration, and it is our firm belief that many of those who were so bitter in their denunciation of the Codes, as being ruinous, are now, deep down in their hearts, sorry that they have been outlawed and that we are about to return to the old method of unrestricted competition, which to our mind can only prove far more ruinous than reg- ulation through national Codes of Fair Competition. So l.mu as there is no possible way of forcing the non-cooperative minority to abide by a purely volun- tary Code, the voluntary Code seems to be no solution of t)ur troubles. ,. , i i a However, much can be accomplished by a strong trade association, and it therefore behooves every re- tailer, who is interested in the survival of his own business, to place himself solidly behind the National Convention of Tobacco Retailers, being held m Boston on June 16th and 17th, and sigmfy t^eir in en^^^^^^^^ no unmistakable terms to co-operate to the fullest ex- tent in every effort to weed out the "chiselers.^ e I 1 On to the Retail Convention! LL KOADS over this weekoiid load to Boston, wliore the National (^invention of the Retail Tobaeeo Dealers ol' America, Inc., will be held at the Statler Hotel, on Snnday and .Monday, June ICth and 17th. That it will V)e a real business convention is evidenced by the program published m the ndjoinin- column. It is expected that tlie dissolu- tion of XKA, instead of lessenini? the attendance will result in attractin- to the eonvention more tobacco retailer^, determined to brin- almut a continuance ot the benelits which they enjoyed nnder the Code. 1^ ol- lowinu- are the eommittees in charge of the conven- ^'""'''cnn-rntinu C^^mwittrr: James T. Scully, Cliair- man: Wolf Cohen, Treasiner; Samuel P>anard, Scc- ^' ^^Frrriiiirr CninmUtre: Clarence Hnnter, Chair- man:\loseph Sanderson, Philli]. Cohen, ('hn;enee II. ^farshman, Au-ustus Simons, William A. Murphy, liarrv Lai»i)an, John II. Kankin, Lonis K. Adelman. Pronrammr Cnmimitee: \\. Cohen, ( hairman: S Banard, J. Fdev. J. Perretti, II. Lappan, E. Leven, B Cohen, W. (»'lirion, R. Heaney, A\ . ^^ iley. Batiqntf C>>t,n}nttre: J. A. Sanderson, (Miairman; W \ :Mnri)hv, L. R. Adelman, J. Foley. Tmnsyortatiou Cnmmittvc: A. Burns, Chairman; A. Morris(m. A. Simons. Rrrrpinui Cinnwitfrr: Clarence Marshman, Chair- man; A. Simons D. O'Connell, E. Xeilsen ^^ . Cohen, A. Burns, J. P.ankin, T. Dowd, A. RicViwagen, ^\. Silver, P. C..lun, ^l. Dnl)lin. . Puhllcifii Cnnnmtiee: AV. A. Muri)hy, (hairman; J Fink E Xeilsen, S. Frank, J. l*owker, J. Frank, A. ^iorrison, E. :Nrulli,!.^an. J. Rankin. C Marshman. Eiiterfahiweut dnnmiUve: J. T. Seully, Chair- man; W. A. Afuri.hy, C. D. Ilnnter, J. A. Sanderson. Rides Cummiiice: Joseph Sanderson, Chairman, Chelsea, Ma?s. ; James Scully, Boston, Mass. ; Harold C Dean. Wilminij:ton, Del.; Edward AV. Gore, St. Louis, Mo.: L. G. Verrette, Afanchester, X. IL: Sam- uel Katz, BrookhTi, X. Y.; William A. Hickey, Bave_ii- port, Iowa; Vincent Connors, New York City; N. D. Eubank, Atlanta, Ga. Resolutions Commitirc: Arthur S. Meyer, Chair- man. New York Citv: P. T. Shirk, Lincoln, Neb.; Rob- ert T. Lankering, Patersuii, X. J.; H. E. Rowley, Bos- ton Mass.; Harrv A. Tint, Philadelphia, Pa.; Fred H. Barrows, Providence, R. I.; I. H. Lefkowitz, New York City. Nomhmtinif Committer: C. M. Dawson, Chairmaj^ Buffalo, N. Y.; James Head, New York City; Louis Klein, Cleveland, Ohio; R. Carl Mitchell, Washington, D. C. ; Benjamin Deutsch, Hoboken, N. J. : John Maut«, Chicacjo, 111.; Harry W, Johnson, St. Paul, Minn. Ways and Means Committee: Herbert Middleton, Chairman, Philadelphia, Pa.; George Curtis, Balti- more, Md.: M. J. Friedman, Yonkers, N. Y.; George Jones, Philadelphia, Pa.; Bert Cunningham, Cincin- nati, Ohio; H. G. Hall, Erie, Pa.; Bernard Garfinkel, Chicago, 111.; T. R. McMullen, Los Angeles, Calif.; W. D. Lillv, Baltimore, Md.; James C. Thompson, Chi- cago, ill.; Moe Weinstein, New York City; Harry Hess, Kansas City, Mo.; F. W. Klinge, St. Louis, Mo.; Charles F. LaFond, Detroit, Mich. ; James A. Domin- guez, New Orleans, La.; Albert C. Allen, New York PROGRAM OF CONVENTION RETAIL TOBACCO DEALERS OF AMERICA, INC. Boston, Mass. Hotel Statleu SiNi.AY, June 1()tii— Monday, Jtne ITtii Saturday Evening, June 15th Resist ration of Delegates. Headtiuarters Suite, Hotel Statler. (! P. M. Special meeting of Directors. S :^ Sunday, June 16th Open Session. 9:00 A. M. Heiiistration of Delegali's. Open Session. l():(Mi A. M. Ccmvention o])ened by Teinporary Chairman, Mr. Lonis Klein. Fleet ion of Permanent Chairman. President's Report. ApiKMiitnient of Conmiittees. Submission of resolutions to Reso- lutions Commit tee. 12:30P.M. Reeess. 2:'K)P. M. Convention Pesunies. 0|>en Session. Report of Rules Coniiiiittee. Sulnnission ef additional resolu- tions to Coinniittees. Art'etinii: of Connnittees. (leneral Discussion of matters af- fecting industry. Addresses by members of trade. 5:30 P.M. Rerin('iples laid down by the Supreme Court Seheeliter ease deci- sion. I merely wonder whether tlie deeision would have been the same if, under NBA, detinite prosperity had returned and were publie opin- ion deeitk'dly in favor of eontinuanee. Two years a.i^o, the nation baeked the X<'W Deal. True, business reluctantly accepted wa,i;e inereases in faee of deficits but went* along with the program op- timistically saying, ''Maybe I am wrong" and sup- jiorted the Administration. Business took the Administration at its word; aecei)ted higher operation costs in return for support of fair trade praetiees; what did it get! Just about nothing! Chiselers got away with murder at f xpense of the vast groiq) of honest business men who gave time, money and energy to support an Act which, because of lack of courage by the Admin- istration, was not tested in the courts until it could no longer be avoided. Result: penalty on co-operator instead of recal- citrant. This was iho first reason for breakdown. ^ Second, was the Frankenstein that grew up in XRA, partly out of laek of organization ability, but chietly because of system of checks and balances which developed from laek of eontidence among iiarties to the enteri)rise. We were told this was an experiment in industrial self-government but, in praetiee, they for- Lcot the '*self." Every (juestifm of eode interpreta- Uon, exemption or exe'eption whieh required immedi- ate action was ehecked and er<.-^ cheeked in Waslung- l.»n, till i)rogrcss itself was eheeked. A eomplianee funetion ehart resembles a battlefield after a l)arrage. There has been talk in Washington of extravagance and racketeering in Code administration. I wonder what comi)arison with oftieial expenditures show. (I have onlv i.raise for members of XHA Division b who handled our Code. They did the b.-.t the "maehme fjermitted.) Finally, there was the biased press. We often hear of i>ress freedom and the hokum that advertising has no iiilhienee on editorial or news policy of news- papers. It would be interesting to evaluate effect on editorial and news policy of average newspapers, of newspapei- advertisers like department stores which ojiposcil i)riee-fixing, and manufacturers who spent tons of money ajipealing to consumer, at the same time forcing the retailer to sell a product at cost and below. Look over your newspaper files for the past year. Large froiit-i)age headlines of any insignificant vic- tory for code com])lainants, small inside page refer- ence to code victories. No wonder business men became disgusted with pussy-footing in Wasliington and public opinion against XHA developed by selfish press activities. The Cigar Code as originally drawn was by no means perfect but its weaknesses were studied and amendments to correct these weaknesses and mistakes were in Washington when Supreme Court rendered its decision. These would have been offered sooner were it not for political considerations. lU'gardless of defects. Cigar Code paved the way to a fair deal for distributors and retailers. With in- teri*>t in cigar sales revived and with increased con- sumer discounts on (luantity ])urchases, I firmly believe all classes of cigars would have benefited. As it is, niorc people are .>moking cigars than for several years pa>t. With t^)de voided, cigar business is again in hands of loss-leader ])ractitioners. Immediately after the deci-ion, cigarettes sold at 77 cents per carton and 5- cciit cigars, 7 for 25 cents. What was gained in two years is being wiped out and our industrv will pay heavily in reduced cigar con- sumption unless prompt steps are taken to stop unfair trade |)ractices. The "Club Has" Been Taken Away! By JOSEPH KOLODNY Executiye Secretary, National Association of Tobacco Distributors, Inc. City ; James Ross, Denver, Colo. ; B. J. Charles, H< port News, Va. ; W. G. Patterson, Birmingham, Ala. The T9bmf W^Hi NDOT'HTHDLY, many of yon hnro heard the expression, "After the hall is ovt-r'*— well, this old saving eomes to min«l most pointedly when I reHcet upon tlie conditions obtaining at present in this and other industries. We have In-en husilv engaged in promoting and effectuating the ideal of industrial self-government— with some of us doing a fairlv satisfactorv job. Satisfactory from a stanc^ point «d' solidaritv of organization and wholediearted resijonse from the major number of the members ot our industry. We have wageti an extensive edueational cam- paign designed toward the eradication of bitterness ami other unpleasant thoughts antl action* obtaining among competitors. (\»nceding that even though ta vorable economic status is the most far-reaching in- strumentality conducive to cementing social bonds, we, JuH* 1$, tvss ncvertheh^s, endeavored to impress indelibly that a spirit of tolerance and co-operation are essential if an improved economic era is to be maintained. Well, the "club" has been taken away. The po- licenM'U 'are either temporarily or permanently re- moved. The mental restrictions (after all, that is all they were) have been lifted. What shall we do now! I am called upon to give a word of reassurance to the industrv. That is poppycock. We are neither in- fants nor imbeciles. We are mature, grown-up, in- telligent business men. Reassurance — ^though a remarkable stimulant— • does not solve problems. We are faced with a most difficult, most complex and most intricate problem. It is- how can the distributing branches of the industry sustain and secure a state of tranquillity and harmony and an assurance of at least a meager return without cither the physical or oven the moral support of the producers! , , . < This thought is unquestionably most ])aramount in evervono's inind. Fortunately I'or us, the past two or three vears have enabled us to crystallize an artic- ulate and ai^iiiessive trade association. It will be in- cumbent—at this time— on the part of trade associa- tions if proper support can be obtained troni the mem- bers of the industry, to assume the burden of preserv- ing at least the trains so far attained. Furthermore, inasmuch as the i>ains have been most meager, they must endeavor to raise the standards. New Federal leuislation may be enacted. \N e cer- tainly oui?ht to unify concerted* action toward enact- ing. 'Enactment of le-islation is slow and— at tmies -discouraging. But, we have a job to do, and only weaklings evade or dodge responsibility. Meanwhile, however, let us— through the medium of the trade associations, in the case of the whole- sale distributors, the National Association of Tobacco Distributors, Inc.— solidify our ranks and tenaciously and jealously fight to secure and retain the benehts already achieved. It is the intention of the National Association, finances permitting, to continue the employment of competent personnel; to try to adjust and conciliate differences obtaining among distributors in various localities; to use the facilities of the national office to adjudicate boundary disputes; to exert every legiti- mate and honest effort toward securing aid, co-opera- tion and encouragement from the suppliers and man- ufacturers. A detailed and comprehensive plan is being evolved which assure the permanency of the Associa- tion and the ability to carry on the aforementioned tasks. Alarm is destructive! Vacillation is an admission of weakness. Complete calmness, composure, stead- fastness and fortitude are most imi)erative at this tinie— and what is more important— let us not mini- mize the task ahead of us. Let us saddle ourselves with the urgency of discharging our responsibilities most courageously, but let us do it cheerfully, co-ordinately and sincerely. We will win! We are bound to succeed. Retailers A Titanic Force By WILLIAM A. HOLLINGSWORTH President, Retail Tobacco Dealers of America, Inc. ONi'EDK defeat.' Never! Certainly, our in- dustry sulTered bv the loss of the Code; what imlustrv hasn't?' But that's water over the dam now, and all our wishing can t call it back. Throuirhout the trials of N. K. A., our ranks, believin*- in us, stood steady. Now with the decision against us, thev bade us -Carry on" and assured us that a firm line will follow nn to the victory which they feel sure of attaining if we, their leaders, per- sev'ere Everv advice savs "Don't surrender— go tor- ward to another good day." What do you .say! Today, the little retailers exjuess gratitude tor, and devotion to their National Organization, Retail Tobacco Dealers of America, Inc. If thev retain noth- ing else from their deal with N. K. A., they still can hold this constructive development ; for it can be made the most formidable instrmnent of battle against their enemies ever placed in their hands. This National Association, if properly developed, will becoine a pow- erful champion of their rights and stand like a l*o- liath between them and those who wouhl destroy them. Already, the loss-leader pirates and the ruthless price-cutters and the mice are plying their deadly trade, slashing and gnawing at the vitals ot a great industry. These business racketeers and their sub^ servient little followers pounced upon the wreckage ot N R A with a vengeance. They showed no quarter nor did they hesitate an instant once they learned the protecting arms of N. R. A. were paralyzed. Before the Supreme Court's decision was off the ticker, they began their plundering of the *'little man.'* These and other selfish interests know the Na- tional Association can be made a strong protector of the retailers. Because of this, just as they have ob- structed every forward step in our industr>% so will ever%^ attempt l>e made to sabotage and tlo aw'ay with the National Association. Guard against these at- tacks;—watch over the National Association's welfare 4 jealously, for it is the retailers' one great stronghold. Individually, the retailers jire frail and weak, but in union, they are a titanic force and noth-ing can defeat them. The immediate task Ixefore the industry is to strenirtheii Retail Tobacco Dealers of America. Every retairtol)acco dealer should be mustered into its ranks, and it should be ])rovided with all the sinews of war, for a uneat campaign lies Just ahead. The retailers* National Organization must be ready to act the mo- ment an ojiportunity i»resents itself to secure benefits tor the retailers. Trials and experiences of these past two years have taught the leaders of the retailers many things;^ among them, the value of unified action and the po*j sible recognition obtainable through strength of numi hers. For the leaders now to lay down and set aside the possibilities of future accomplishments after awakening hoi>e in the breasts of those who fought so valiantly in the ranks, would indeed l)e nothing short of tragedy and would be construed by many of those who followed faithfully, as l)etrayal. If we need consolation for what we have fore- "'^one it can onlv come to us by way of future attain- ments. To assure this, we must continue together, solidly, loyally and in union. I pray you will commit yourself to this program and that you %vill write and tell me that you do. , ^ .„ , i , u As time goes on, T Micve you and I will look bacir and be proud of the parts we were pennitted to play in the great undertakings of the National Industrial Recovery Act, for the N. I. R. A. will probably go down in history as the greatest social and economic reform ever attempted. , And now with the deepest gratitude and appre- ciation for the services you so ably rendered the retail tobacco trade and me personally, I again beg your support and co-operation for the task ahead. Tk* Te^e9 World '^jMMSi \\ ^-,4. ^: sttuck a yliatck in the 0y V. Cnsack in a drive for atUlitional placement^ on Bayuk Phillies, and the report is that the brantribution and display in that area ... J. Pnger, Bayuk 's salesman in l>inghamton, X. Y., area, reports active distributitm, easi- display and dealer helps well idaced in that sector, where brand is distributed by the Scrant(tn Tobacco Co., Inc. . . . C. H. Wright, Bayuk salesman working with PhiHie> distributor, Jersev Citv Tobacco <'ompanv, writes that the brand is well displayed and sellinu >trong as ever in the Jersey City area . . . The Amster-Kirtz Cigar Co. reports that Bayuk Phillies are moving faster in Cleve- land and adjoining districts an that Bayuk Phillies i-« selling strong and well supijorted by |)osters, signs and displays in that region. PA'S DAY BUSINESS GOOD FOR G. H. P ATIIEirS DAY business . . . . Tho Boston luanch of the (J. II. P. Cigar Co. was closed last week, and the Kl Protlucto-LaAzora dint rilmt ion is being operated through jobl»eis in the New Kngland territory. Frank P. \Vill, executive vice-president, spent several days in the territory last week, contact- ing the various jobbers. . . . D. A. Jenks, assistant sales manager, has resigned and enters Ujjon new du- ties elsewhere with the company's I>est wishes for his future success. 8 Trade Notes John L. Mc(iuerty. IJomeo y .lulieta representa- tiv<*, visited retailers and jobbers in Philadelphiji last week and n'ported excellent demand for his brand. Herman Abrams, Medalist rejiresentafive, is pro- moting the tlistribution and sale of his brand in Phila- tlelphia this week with good results. Yahn ^' McDonnell, «list rilmtnrs of (iarcia y Vega fur this territory, are displaying this popidar clear Havana brand in all their staihU and windows this week with uood |■«'^nlts. John AVagner cV: Sons, distributors wn brands. Wagner, Monticello, etc., are enj«>ying a splendid demand. P>arton L«'ndein, <»f M. Sacks & C(»., was in t<»wn ia-t week, having just leturned from a trip through midwestern territory in the int('r<'st of his brands, and reports the mo>t successful trip he has had in nuiuy vears. Other visitors includetl (leorge Stocking, of Arango y Arango factory, and William Freeumn, of the Metlal of llnnor factoiy. Both men reported their products enjoying an increasing demand. Abe (*ars. t»c «;„_-- about 1000 degrees higher than being a mere Salesman. {To he continued) TiMrc'l • lo' *>' •tWWttiBBMIIt Mid plcntv of tound bar** »•«•« In lh«»« r*fflinUccnrrf of lh« Old Timer. In hii next ch*p»«r, he lelU how he earned a promoiion by not letting hi» per»onal di»- like« iund in the way of dome a good job. A sign sayL. «;„„^ her. What about some good cigars for him — on Father's Day — {««• le*"' A pretty catchy display, what! Why not adopt it— or think up a bet- ter one — for your window? BAYIK BaANDS BUILD BUSINESS Bavuk Phillirs (BXyI E PHILAUfcLPHIA VKXWWCSO^ Havana Ribbon MafwculMi Cbarles Thomson Prince Hamlet LUCKY SATURDAY! Who says retailers won't buy on Saturdays? Charlie Coleman of Chi- cago on a recent Saturday sold 36 orders, and on the very next Saturday booked 44 sales. ,«*„:i.- Week ends are when the retailer is busiest. Saturday is the very day his stock is likely to be getting low. He may be just waiting for |ou to pop in and take a hurry-up order, The accompanying pho- tograph shows the attrac- tive display of John Wag- ner & Sons at the recent Philadelphia on Parade fair, held in Convention Hall. The cigars displayed in- cluded Wagner, Monti- cello, Medal of Honor and Don Sebastian. Cuban Exports Decrease Slightly S reported by Vice (Vmsiil W. X. Walinsley, Jr., and made imblie by the Tobacco pivision, Department of Commerce, ex})orts of leaf to- bacco and tol)acco scrap from Cuba to all comitries during the first Umv montlis of 1I».*>.') show a slight decrease of volume (less than 4 per cent.), as compared with exports of these commodities dunng the first four months of 19U. Exports of cigars, ciga- rettes, and smoking tobacco also show decreases. Cigar exports decreased IT. p«r cent., cigarettes ap- proximately 13 1-3 per cent., and smoking tobacco 3L..J per cent. The total value declined 6.4 per cent. Exports of tobacco and toV)aeco products froin Cuba to all countries, January through April 193.J, amounted to $4,281,581, compared to $4,574,501 m the same period last year. Exports of leaf tobacco and scrap to the United States " " ' * " "' ' ^ ""'' *™' ^*'"^' totaled nared .. .i.. » -» the like period of 1934. The decrease in volume wa less than 2 per cent., while that in value was approxi- matelv 12 per cent. Exports of cigars, cigarettes and gmokmg tobacco to the United States >how increases. Cigars increased from 512,776 to 839,311, d 4,255,281 pounds, valued at $2,331,327, com- l w^ith 4,338,4(J0 pounds, valued at $2,64 r, 284 in Exports of citcars to the United States in 1935 are well advanced (.ver the fir>t four montlis of 1934, but the April 1935 volume, while nearly 54 per cent, over April 1934, was al)out 20 \wr cent, under March 193o. kximrters are said to be of the opinion that there is little i)rosi>ect for recovering the remunerative mar- ket for citrars and other tol.acco i)roducts which once prevailed in the United States. These exporters as- si«ni the popularitv of cigarettes and cheap machine- made cisrars for this condition. While the changing situation ma V jitTect the cigar and high-class wrapper trade, it is skid that there seems to be no reason why business in scrap and filler tobacco for blending pur- jioses will not improve if and when general economic conditions improve. Cuban toliacco exporters are giving thought to their claims of a wnstant decrease in demands for Cuba's tobacco and cigars in formerly remunerative markets. The markets of importance now remaining to tliem are said to be the United States, Great Britain, Spain, and France, whereas fonnerly the Argentine and Uruguav, for example, and certain northern Eu- ropean countries, were large consumers of high-grade Cuban filler and cigar-. Exports to the Argentine and Uruguav are reduced to a fraction of their former volume *and the (liilean market, it is asserted as well, has been taken away by Chilean producers and by tlie l)rotectivc policv of that government. Agitation m to- bacco interests 'in favor of commercial treaties, par- Tkf Tobacco World itUadt by C. H. 1'. Ciuur C-., In... Phila. El Producto's reputation for quality among smokers can be turned into sales when you oflFer the El Producto shape that strikes the customer's fancy. Remember El Producto is made in slender, streamlined shapes as well as full-bodied perfectos. EL PRODUCTO /or real enjoyment ticularlv with tlio Airt'iitine, I'niKuay, and (lulc, 18 said to "be acciuiriiiK motnoiituin ami toic-o. Tlic loi'al tU'iiiaiid t(ir eif;aietl<' tobacco coiilimics ,.xccllciit despite tlie loweiiiif; of t)ie < '.11)^1 tantT on American eiflarettes. This is clain.ed to ^l^;;J>^?l siKU in all llie tobacco trade. I'urcbases durii K tl e past niontli in the eastern provinces are reported to have been mainly in behalf ol' local c.-aretle lactones. The latest reports from the I'artnlo district indicate that the wrapper tobacco from the current crop wluch is now l>einK cured is showing up very well, owin^ to """"Dur-mrApril, the National Tobacco (•ommission issued regulations based on rciuirements ot the Span- ish Tobacco Monopoly, with ^vlmh loca houses mst complv in order to bid lor contracts with the Monop- oly These regulations have for then; pnnmry pur- ,«8e the desire to assure tlial "■'l>7,"''"';'';.'l':"':,:; ' bid for contracts and that the cpia lily of heir prod- ucts may be vouched for throu«li the issuance of certificates on the part of the Coniimssion. !•'>;"'«>"- tending to bid for cigar ''".'>','•»?»« "'■^'"•".'"/r: ,'"'"„ mil documentary proof of tlieir legal ''(^l'' ''"'«""; facture cigars, the tvpe ot cigars made, classes ol tobacco us«l. ind their use of manual and not tnachine •"•-'l/^^intTecalled that the 1 1'^' VnllZ:'.!' b^thl 18,183,341) pounds (unsteniined equivalent) fixed h> the tobaci, adjustment program "♦..'''L^^iiliL'tes was ut iustment Admin stration of the 1 nited States was un fi led bv about 12.3 per cent., and, according to some e timatls of local dealers, even a larger P"''^" f^" unfilled quota will 1m- seen after the end of this jiar if the limit be fixed near last year s level. Asin the past, it must be noted that although un- stemmed equWalent is estimated locally in accordance June 1$. '935 witli the estal>lishea principle of 1.33 pounds of un- stcinmed h«nf for eacli pound of the stemmed, compu- tati.nis made on the i)asi.s of Cuban export figures do lu.t take into consideration shrinkage between Cuban ,M.rt^ and American ports of entry, and other less im- M.rtant factors influencing the preparation of the a. linitive statistics for legal purposes. ^ _ , _ The unstemmed leaf equivalent of Cuban Tobacco rxnc.rt^ to the United States is running behind that 1„;. last vear. Ciitil April 30 of this y<^ar, exports of tclmcco 'and tobacco manufactures to the United States in terms of unstemmed leaf has amounted to :),'J71),702 pounds. FERBIENTATION RETARDED IN CUBA l?()L()X(JKI) drought in Cuba is delaying fer- mentation of the new tobacco crop, and, while normallv new tobacco is available in May and June, it" is claimed that new tobacco will not be marketed until July or August. It ^^^^^id that the Qualitv of new tobacco has been adverselv affected by &it! and according to reports most of the tobacco wHl be strong, and the clear type pret erred m forei,^ . rkets willb.^ limited. It is claimed that low price e 'ar cm^umption in the United States is r^ictir^ exportation of superior quality Cuban tobacco. Do- m^^lU obacco in erests are not optimistic over the ^^;^ibilHvXcreasing sales of VeuUa Abajo or oOier i di viou^ c^ps ^ ^ snmll but the stock of yeulta Abajo ^f^f^ *^ sufficient. (Office of American Commercial Attache, Havana.) tt Code Expressions from Manufacturers BROWN & WILLIAMSON VFAl ilk' sitinalnrc of (Jco. ('ouikt, PrcshU'iit, the Brown cV' Williamson Toltacco Corixnation lias M'lil till' t'ollowiuii' leUcr lo its c'U>tonKMs: "111 view of the au'itation coiifcrninu,' the tlireateiied ehaotie eoiulitions in the wholesale and retail tohaeeo trad*' on aet-ount of tin* deeision of tlu' Supreme Court in the XHA ease and of the expressed desire on the i)art of eertain manufaeturi'rs that there should not be a reeurrenec of eonditions prior to the XKA, we i)roi>ose that drlinite and eonerete sti-ps he taken by the manufaeturers at this time to nu'i't Ihi- situation in sueli a way as may be legally possible. "To that end we have today smt lelei^rams to ^^r. Jose])h Kolodny, secretary of tin- National Association of Tohaeeo Distributors- Mr. Williaiu 11. lloUinus- worth, ehairman of Xaticmal Code AuHiority for retail tohaeeo trade, and Mr. Charles l)u>hkind, eounsel antl nianaiiiuiT direetor of the Tobacco Mci-cliants Associa- tion, whom we consider to be the most m'licrally ac- cepted rei)resentatives of the res])ective branches <»f the industry. "The teleuram sent to each is as follows: ** 'We believe that the interests of the manufactur- ers as well as those of the jobbers an«l retailers (»f tobacco i)roducts are vitally involved in jobbers and dealers receivinir a fair and i'easonal)le pi'olit on to- bacco ju'oducts (stoji) The experiiiK-e uncUr the X.H.A, codes of fair competition for ictail and wholesale to bacco trades has to (»ui' mind conclusively jiro\ed thai stabilized ]»rice coniliti(Uis in, an in the distributing end of the industry exislinu prior to the X.IJ.A. wo think definite and concrete stejis shouhl n<>w be taken to jjrevent the I'eturn of such conditions (stop) To this end we piopose and would be willinu to un along with other manufacturers in makintr any aureement that might be legal under appioval of tli«* Federal Trade Conunission oi' otherwise, wliereby theic wo\dd bi- re- stored for jobbers an, 19.'>r>, to the code of fair <'omj)etition for retail tobacco trade and tin- ordei' approved April 29, 193.J, under the code of fair compel it ion fnr the wholesale tobacco trade.* " GARCIA & VEGA It does seem, in general, that both nuuiufacturer have a common interest in maintaining their business on a basis of reasonable profit and ethical conduct. It lies within the power of the retail trade to enforce such a basis and it is our sincere liope that co-opera- tion will be actively atTorde, i|i4.75; 2 for 'Jo-cent size, 2 for 25 cents; box of .')(), $5.75; 15- cent size, 15 cents; ])ox of 50, $r).75; o for 50-cent size, .) for 50 cents; box of 50, $7.75. PREFERRED HAVANA AVe have full intentions of doing <'verything in our ]K)Wer to see that our merchandise is retailed at the proper selling i>rice because it is only by so doing that our loyal accounts might have an opportunity to conduct their business profitably. E. POPPER & CO. Consistent with our policy established long before XHA, we shall, despite the collapse, continue to pro- tect retail prices on our brands so far as it is in our jjower. We have always been and are now in sym- pathy with price maintenance. TOBACCO CONSUMPTION IN CANADA OXTHLY rei)orts issued by the Canadian De- partment of Xational Revenue show that dur- ing the first four mcmths cd' 1035 there were entered for consumption in (*anada 5,492,772 pounds of (ut tobacco, 1,231,9(J2 pounds of plug to- liacco, 241,:il>4 pounds of snufT, 1,40H,25;i,93() cigarettes, :!1,45(»,216 cigars, and 2,373,029 pounds of foreign raw leaf tobacco. All pro«lucts in April .show increases over Mari'h except snufT, whicli showed a decrease of nearly 2.5 fier cent. Increases were cut ttauces which make necessary the susi)eiia^l«h Srm offered to take the entire 1935 1936 crop and it is understood that Japa- nese Importers have also indicated interest m bidding for the crop. Domestic cigarette manufacturers use the locally grown Virginia type tobacco for b^^^^^^^^ purposes. (Trade Commissioner J. B. Richards.) Sunt t$. 1935 rPROFIT BY THE NEVf~l DEMAND FOR OLD GOLD A new heavy demand for Old Gold Is sweeping the country. New dealers especially have sensed this trend. They are not only stocking-up, but playing-up Old Golds. The makers of "America's Smoothest Cigarette" are cooperating with a new line of timely win- dow cards and other helps that every Old Gold dealer should have on display. Ask your jobber to help you sell more Old Golds. P. LOR I LLAR D CO., INC. fttobfithad 1760 ll» WIST 40TH $T«IIT I NIW YOtK CITY TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES -^^ ..„ ,. „, .,_ President JKSSE A. BLOai. Wieejinf. W. V». • Vice-President LLIUS LICHTENSTTEIN. New hotk. N. \ ^^-j-- E«cutive Committee WILLIAM BEST. Ne* \ork N. J- ■•••■■•• cnairma Vice-President MAJ. GEORGE W. HILL. New York. N. \ ....Vice-President GtURGE H. HUMMELL. New Wk. N. X ....Vice-President H \l. SHELTON. Washington. U.^C ..Vice-President WILLIAM T. REED, gjchmond. Va. r.;;.".... Vice-President llAKVEY L. HIRST. Phuadelphia, P* Treasurer RETAIL TOBACCO DEALERS OF AMERICA INC WILUAH A. HOIXINCSWORTB a3 B,..d.., N.- ^.^ ^..^.-RniS S'Jli?sT™o>f?^N=:' an additional charge of One Dollar (|l.OO) will M made for every ten (10) additional title. nece.Mrily reported. REGISTRATION SMELTZER'S:— 46.463. For cigars. C. E. Smeltzcr, Bittersville, Pa.. February 18, 1935. TRANSFERRED LA CONFESION:— 2861 d'. S. Patent Office). For ciprars. Regis- tered December IM. 1H8_>, by Apin.lonio I'. Chu.. .St. Luu.s. Mo. Transfcrre.l t.. (.hi- ."^ Kovira. New York. X. \ .an. r^-t^n^'erred to La Confesion Cigar Co^ Inc., New \ ork, N. \ ., July Ji, iv*.^. TRANSFERS LONDON TOPS:— 35.305 (Tnited Registration Bureau). For ci- gar>. cigarettes, little cigars and all sorts of tobacco prodiicU. Registered March 29. 1009. by S. Monday & Sons. Brooklyn N. Y. Transferred to Arthur Falk. New Rochelle. N. \ .. June 6. 1935. NOVELETTE:— 13.203 (Tobacco World). For cigars. Registered March 8 1901. bv Horace E. Jenkins, Lansdale. Fa. Transferred to The Kellv Cigar Co.. Red Lion. Pa.. May 29, 1935. MARAVAL:— 16.265 (Tobacco World). For cigars, cigarettes and dierootV Registered September 23. 1908. by Calvert Litho Co., New York X. V. Through mesne transfers acquired by l- Lewis Cigar Mfg. Co.. Xewark. X. J and re-transferred Jo I mted Cigar Stores Delaware Corp., New \ ork. X. \.. June 4, 1935. William Anderson, factory representative for the \nioriean Tobacco Company, is in Baltimore and \VaU,isi \i,n tno! re mi lO ^.«^ o»' >vv^''. lIFi IS MOBI WOUTM WHILE *'^ COSTLIER rOHACCOS ! THE TOBACCO WORLD Vol 55 JULY 1. 1935 No. 13 ^Y, SKK bv tlio papers that the business men of LVCI a certain mid-western city have ^^otten up a 1 littU' private and voluntary NKA of their own to take the phice of the kite himented Blue Hade. More power to them, say we. The NKA may liave had some bad features, as wliat liuman con- trivance hasn't. But we never couhl s.e anything but good in the price maintenance provisions ot tlie tigar (ode AVhv anv (h^ahn* wants to sell a five-cent cigar for less than live cents stumps us. If price cutting is \\w best wav to attract business, why not cut the price to nothing and get all the trade in town! We believe in everv dealer's making a tair proUt. We preached that doctrine long l)efore the Blue Eagle was ever hatched and we're still talking about it. Hugged individualism is all right but indis- iriminate, throat-cutting competition is more likely to lead to Ragged Individualism. , ., , , • We believe there's a l)etter way to build Imsiness than by price cutting. And that better way is service. What say you, cigar merchants? Cj3 Ct3 CjJ TRAW hats, baseball and five-packs of cigars— these unfailing signs of summer are in our midst again. In warm weather the customer s sales resistance to the lure of the five-pack Heems to melt away to the vanishing point So now is the time for all good retailers to come to the aid ot their own bank accounts by putting some extra steam behind the five-pack. , ♦ lu u „t. to Displav it, instruct your clerks to talk it up to vour customers-and you'll see how easy it otten is to sell five cigars to the customer who ordinarily bu>s only one or two. «et your customers in the habit ot bu%'nng five-packs during the warm weather, K^ >our clerks in the habit of selling them, and you will fiiu the five-pack a steady year round seller. ^^»io t^ld us suf The retailers who are selling them the >ear round. Cj3 CS3 Cj3 JTE foregoing two editorials are full of meat, as anv successful tobacco retailer will testify. We believe in the truths they express, even though we didn't write them. They were written bv one of the wisest men in the industry, who signs himself Phil M. Phulofax, the Retailer s iriend, and were taken bodily from the June 22d issue ot the Bavuk Bulletin, of which Phil is the editor. And those were not the only paragraphs of wisdom in tliat particular issue. Listen to this, for instance: A tew weeks ago he said, »! don't think I'll sell any cigars for Father's Dav.' He Didn't. A few weeks ago another dealer siid, 'I am Goino to sell .some cigars for Father's Day.' HeDro." Phil couldn't have said more if he had written a page of words. ||()U quick reading here are the production fig- ures for May, published in detail elsewliere in this issue*: There were 427,250,743 cigars consumed in this country during the month, includiim- ^lanila and Porto Rican exports. This was an increase over May of last year of 28,909,674 cigai^^, or 7.2(; per (M'hI. M'ore than 88 per cent., 376,957,470 cigars, were of Class A. By sources of manufacture, the cigarK were divided as follows: 407,731,360, an in- crease of 7.17 i)er cent., were made in the United States; 4,448,210, an increase of 7.04 per cent., were made in Porto Rico; and 15,071,173, an increase of 9.72 per cent., wric made in the Philippine Islands. And here is liow the various classes lined up: Class A showed a 10 per cent. gain. Class B recorded the unusual gain of 30.36 per cent., with a production of 6,554,197, showing a big increase in the demand for two-for-fif teen-cent cigars, (/lass C dropped 18.49 per cent. Class D declined 13.33 per cent. Class E showed an increase of 11.28 per cent. Cigarette production continues to mount, with a production for the month of 11,708,756,460, an increase of 4.79 i)er cent. SnutT dropped 3.48 per cent, to .3,184,969 pounds. Manufactured tobacco went up 6.56 per cent, to 27,U7,1>15 iMmiids. m CS3 Ct3 Ct3 HE Retail Tobacco Dealers of America, Inc., mav well be proud of the convention in Boston on June 16th and 17th. It was a splendid irathering of serious-minded men, and The Tobacco" World pledges its co-operation in the r^ tailers' efforts to obtain the four desiderata which emerged from the convention's deliberations as ot paramount value and importance to retail tobacconists of the countrv: (a) To make the association repre- sentative of tiie power and influence of the country's 81KM)00 tobacco dealers; (b) to obtain federal ap- proval of fair merchandising provisions such as wcto found advantageous during the operation of the Code; (c) to obtain state legislation to cover intrastate op- orations in accordance with the same provisions; (e) to obtain Federal and state bans on loss leader and like practices. Todav, President Hollingsworth reported, the as- sociation'stands highly respected. It has developed prestige and character, which will take it a long way if its purposes and policies are properly adhered to and fostered bv the members of the retad tobacco trade, and it is my belief that much of what has been lost to the industry by the abolition of the >iKA will be retrieved if this organization perseveres and grows to a degree which will make it the truly national rep- resentative of the industry. Th. TOBACCO WORLD (»..b.Uh.d. 88.) U p«b.Uh.db^^^^^^^^ DeleXr 22, 1909, .1 the Poit Offic, Philad.lphia. Pi, und.r the Act of March 3, 1879. Bayuk Boosters Hold Annual Outing AST Satrnday, Juno 22iid, the Bayuk Boosters Clubs ol' the New York Branch of Bayuk C'i- o-ars liieori)orated and the Newark Braneli hehl their annual outin.u at Bon Air Lodge, Lake Hopateonu, X. J. Ill the early morning the New York group, com- iim over ill a chartered bus, met the Newark group ami the cavalcade proceeded to the Lake, getting there caiiv enouuh to go for a swim before lunch. After lunch there \s-ere athletic contests, card games, boating and swimming, during all of which re- freshments were available. Dinner wa>^ served in the early evening, after which i)rizes were awarded \n ilie winners of the sev- eral athletit events. At the dinner Mr. A. Jos. New- man, vice-president and general sales manager of Ba- yuk i'igars Incorporated, acted as toa>tmaster and awarded the prizes. The prize winners were: L. ^Vein- stein, n. Newman, W. Jelling, D. \Vhitely, L. Ri])- perger, C. Johnson, J. Francisco, S. Galitz, E. N. Hirst, A. C. Lvnch, C. F. Barrett and G. C. Munson. In addition to those already mentioned there were l)resent : J. Quigley and B. W. Burnside of Philadel- ])hia; Mr. Fred Brown, L. HofTman, P. ^Laguire, C. Barrett, ^NI. Austein, S. Saul, R. Strathearn, E. Asher, U. Poarlman, J. Cole, W. Kinkade, J. Berger, C. Plot- kin, E. Hanson, T. Hughes. ^\. Weidler, H. Little, F. Hillman, S. Weinberg, R. Ilopf, P. Rubino, P. Triadis, J. Zeitlin, 0. Zimmerly, A. Goudey, C. Levy, J. Car- lisle, J. Floersheimer, H. Leopold, H. Mi\\u% A. Pretz- feld, IL Gretsinger, IL Catlin, G. Lindquist, B. Albert and J. Mellon from New York; Abe Brown, S. Even- chick, D. Sholk, I. Weinberg, W. T. Glassford, I. Hes- lowitz. A. Strombeck, Ed. ^lacAllister, Sr., Ed. Mac- Allister, Jr., C. Wright and Chas. King from New- ark. The grand door prize was won by E. M. Hirst of Philadeli)hia, it proved to be a handsome electric clock. At the end of the day they all wended their weary way homeward, tired but hapi)y. It's General Sales Manager Jenks Now AVID A. JENKS. assistant sales manager of the (J. H. P. Ciuar Co., has resigned to becom* i ffeneral sales manager of Wait! ^' I'xmd, Con- u,.- Ciirar Co., and Porto Rican-American Tobacco Co., succeeding Philip M. Forristall. He has spent \n< entire working life in the toliacco industry, start in- in his home state of Michigan as a member of Li<,^uelt & Myers organization which introduced Fa tima "cigarettes. He next Jt.ined the sales force '>! Harry W. Watson Co.. Detroit, makinu dealer con- tacts "from the wholesale department. His succe>> earned for him the ]M)>t at the head of the retail department of the cnmpany, directing the sales of its stores. He remainetl there for nine years. Fourteen years ago he joined C. H. P. as Midw*e8t divisional manager, with heachpuirlers in Detroit. From there he moved to Cleveland, in 1925, and aftei- a vear was called into the liome office in Philadelphia as assistant sales manager under Frank P. Will, exec- utive vice-president in charge of sales. He leaves that organization with the sincere good wishes of Frank Wili and the entire organization to take up his new duties on July lirst, after a short va- catiini. His business headquarters will be in Newark, N. J., and he will make a home for his family in that city's suburbs. J. M. Porter, president of the three companies with whicli he becomes connected, said: "We feel that we are fortunate in .securing the services of Mr. Jenks. We have known him for a long time, and we have great respect for his ability, personality and character. We have observed the way he works, and we like it. We feel sure that in turning over to him the large respon- sibilities that go with th(» direction of our sales de- jjartment, we are placing for accident frequency, in comparison with 15.29 for all industries r lifting to the National Safety Council, during 19^. This is .shown l»y figures just releaae-ex- tend every possible cooperation, blah, blah, blah. All trade papers may accord this empty gesture some preferable space; it may be read from the dais to the assembled delegates of the convention A tew conspicuous guests might applaud it, and thus ends the usual conventional tale. Somehow or other, while it may not always have been discreet or proper, 1 was never given to any such antiquated, nonsensical poppycock We arc confronted— particularly at this time— with the vivid realities of life; with strained and dis- rupted economic relationships. We are faced with i.roblems— the solution of which demands honest and clear thinking, courageous action and determined ex- ecution. , iU i Let me, therefore, endeavor to express the true thought of the wholesale tobacconists at this time. Our individual enterprises, capital investment, financial standing and reputation are reduced to naught, if the independent retail tobacconist is to t ace (Xtinction from our present economic state There- fore when we either express our concern with or dem- onstrate our friendly attitude toward the independent retailer, we are doing it solely, not as a diplomatie gesture, but as a recognition that our business is worthless without the retailer. What shall we do as jobbers! . ., ^ ,, , What shall we do as wholesale distributors that will tend to fortify our welfare, and, as such, preserve and perpetuate tlie iconomic welfare of the retail to- bacconist. This is not a dual problem. This is not a Dr JekvU and Mr. Hvde issue. This is a unified and definite problem. It is a legitimate relationship of two economic groups inter-dependent upon each other. At this juncture, I propose we promulgate the following: More Members Needed (a) Unilv of purpose and objective. The mem- bership of the Retail Tobacco Dealers of America must bi» increased. Lethargic memberships must be trans- ferred into animated memberships. The jobbers, in- dividually and through their organizations, surely, must assume a considerable portion of this work. They intend to do so. (b) Modem merchandising ideas must be incul- cated and instilled into the small independent retailer. This is the jobbers* task and obligation. The retailer who is employed many, many hours every day has neither the time nor Uie imdination to seek or acquire JwM IS, 1933 cnopcration. Coordination Necessary (c) The local, state-wide and national organiza- tions, wliolesale and retail, must coordinate forces and ('fToits designed toward obtaining state or national economic relief. The '' loss-leader" evil can be par- tially curtailed bv proper crystallization of efforts umoni,' Jobbers and retailers. While the national or- ^^anizations may have to deal with national chain store outlets, local organizations— individually or collec- livcly — can use persuasion; can appeal to the vanity and honor of the individual; can appeal to a citizen's civic pride in an endeavor to halt '4oss-leader" prac- tices amomr independent retailers. (d) We spent two years of steadfast effort for the purpose of obtaining codes for the industry. We were confronted and had to overcome the antagonism toward price maintenance, price markups, and price- lixintr. This appears to be an everlasting problem with us. I suggest that the wholesale and retail distribu- tors wage an educational campaign among consumers, illustrating and demonstrating the economic fallacy of "clieap" and *' below cost" commodity prices. Foundation for Progress (e) The large producers and manufacturers so far assumed a neutral position, a passive position, which— after all— is a negative position. The whole- sale and retail organizations— in unison and coordina- tion—should and must exert every legitimate argn- ni. nt and method of persuasion, calculated to obtain at least a meagre degree of co-operation from the pro- .> when promulgated at the meetings held in Prov- idence, R. L, for the New England area, Syracuse, X Y., for the New York State jobbers, Harrisburg lur the Tennsvlvania jobbers, Philadelphia for the Philadelphia and Jersey jobbers, New York City for the metropolitan jobbers, and Cleveland for the Ohio jobbers. Every point of the country will be covered by the group of national co-ordinators, who previously worked under the NRA Code Authority Plan. National (Ml (irdinators are immediately beginning to function under the plan, and applications for membership and participation in the industrial self-government plan are going forward to every member of the industry throughout the United States. From all present indications, and the immediate response from those sections where meetings were held, and the plan was explained, the plan will meet with almost unanimous approval of every distributor of tobacco products everywhere. ,. , « , It is well to note that one ot the salient features of the plan is that it permits every distributing fac- tor in the industry— be he jobber, sub-.iobber or allied distributor— to participate upon an equable basis with his fellow merchant. NATD Industrial Self-Govemment Plan What are we aiming to do! We are jiledging ourselves to the retention ot those uains achieved through the C^odo of Fair Coni- petition for the wholesale tobacco trade— under a vol- untarv agreement. , . i i? liidustrv has learned two important and tar- reachiuir lessons while operating under codes. Lesson X<>. i— Destructive price-cutting and un- dermining of the next fellow's business, though a tem- porarv expedient, ultimately reflects ingloriously and reacts* unfavoiablv upon both victor and vanquished. There is no end and no limit to cut-prices without some definite control, any more than there is a way of curbing an epidemic in the absence of modern med- ical knowledge. . Lessov No. ^— That any policies adopted, seeking an improved condition, must receive tlie voluntary re- sponse of the major portion of an industry. Enforce- ment, be it moral or legal, must be ])roductive of de- sired objectives. If any policy does not meet with the ready response and favor of the majority of an industrv* it fails, it capitulates and it i)erishes. The XRA has been invalidated. P]very member of the wholesale tobacco trade concedes the benefits re- sultant from this new legislation regimenting indus- try. Until such time as the Constitution is either amended or some other legitimate plan is evolved manifesting objectives and purposes similar to the XRA, industry can neither seek nor expect any marked relief from the Government. It now becomes the duty, the function and the purpose of trade associations to assume leadership of industry. What Is a Trade Association^ It is a voluntary membership organization of firms of the same industry rallied together to adopt and promulgate a definite set of ethical principles and better methods of business relationshij) for that indus- try. Because it is voluntary, and because its decisions are carried out freely and based upon the honor and integrity of the individual members of the industry, a trade association, if properly guided and adminis- tered, may gather sufficient strength to control the destiny of an industry. Since the principles of trade association are vol- untary and not compulsory, based on honor and not force, industries formerly codified are directing their attention and are looking forward with the utmost anticipation to their trade associations to assume lead- ership during this intermittent period. The force, influence, assertive powers and lead- ership of a trade association will depend entirely upon the courage, conscientiousness, fortitude, steadfast- ness, and aggressiveness of its leadership. The NATD has demonstrated — in the past — its fearlessness and capacity for leadership. Currently, it walks into the present situation of uncertainty and again proposes to surge ahead, to proceed promptly with a definite plan for effectuating industrial self-government in in- dustry. How will we proceed? Organization of industry under an industrial selt- o-overnment plan differs decidedly from that of organi- zation for the purpose of administering a code ot tair competition. ^ . ., ., Administration of codes was under the authority and commission of the (Jovernment of the I'nited States, and, as such, the functions and activities ot the various national, regional, divisional code authorities had a semblance of federal authority. . , if Organization of industry under an industrial selt- t^overninent plan is entirely voluntary. It calls tor 'Superb organization, intelligence, and understanding. Various conflicting elements must be reconciled, co- ordinated and solidified. Evervone seeks and aspires toward the attain- ment of an improved economic condition. Every in- dividual has his own means, methods, and i)olicies of attaining that objective. We must, therefore, respect and give the utmost of consideration to the o]>inions and beliefs of every group or individual firms. Little can be accomplished without the unified support of all members of the industry. It, therefore, becomes most urgent that local asso- ciations be formed of both direct buyers (wherever such organizations have not as yet been formed) and non-direct buyers, commonly known as sub- jobbers. The plan' of procedure outlined embraces a com- prehensive method of promoting and achieving indus- trial self-government for the industry. Lest there be any misinterpretation, let us clar- ify the following point. At present, the membership of the XATD has joined on a dues basis of $25 per annum. This basis is neither changed nor altered. As heretofore, membershij) in the XATD will continue at the special temporary rate of $25. The industrial self-government plan supplants and assumes a large portion of the Code Authority activities, and as such the financing of the plan is en- tirely apart from that of the ordinary XATD func- tions. While the annual (hies to the Xational Asso- ciation is identical to every member, be he large or small, the payment of dues under the industrial self- government plan is based on sales — thus the man wlio does a small volume of business pays a small amount, while those doing a larger volume of busineBfi pay a larger amount. The .accompanying application contains a com- plete outline of the amounts to Im? paid by the mem- bers of the industry in proportion to their volume of business. Inasmuch, therefore, as the self-government plan supplants the Code Authority activities, and since the Code Authority was representative of the entire in- dustry, and not necessarily of a selected membership, it, therefore, is logical that the self-government plan should embrace all elements of distribution and not necessarily any individual or particular element of distribution. Why should members of the industry join and finance an industrial self-government i)lnnf This may not be an unusual question. The past two vears has sufficientlv indicated and demonstrated that organized effort is vital, urgent and es.sential if an improved economic condition is to be secured and maintained. We have learned — and it was a nevcr-to-l>e-forgotten lesson, particularly since the inception of the depression in 1929, that nicmbew (Continuf'fJ on Pafjp 11) Tht Tobacco World MIA. £)nibAt)ELi BAYUK BREVITIES VER the week-end J. P. Given, Bayuk Terri- torial Manager for W^estern New York, visited headeen with the company sixteen years. ... El Pro- tlucto and La Azora business is piling up to a gratify- ing volume in Boston, where the account is operating through the jobbers. . . ♦ July /, ms Trade Notes Don Sebastian, Monticello and Wagner, all three brands distributed in this territoiy by John Wagner & Sons, are well displayed here and enjoying a good sale. . Hi Hammer, representing Salvador Rodriguez factorv, was in town last week in the interest of his firm 's high-grade brand. Hi reports business good. Willis Andruss, former sales manager for the Congress Cigar Co., before its consolidation with the Porto Rican American interests, was a visitor m the trade last week renewing old acquaintances. Herman Abrams, Medalist ambassador, visited Atlantic Citv, Baltimore and Washington last week, and is now visiting the trade in eastern Pennsylvania territory in the interest of his brand, with good re- sults. F W. Sommerfeld, of the F. W. Sommerfeld Ci- gar Co., Miami, Fla., was a visitor in town last week. Mr Sommerfeld is making one of his periodic trips through northern territory in the interest ot his l>rands, and reports a highly successful trip. Mr. Joseph Wagner, of John Wagner & Sons, has returned from a trip to Phoquintin Fishing Club m ihr mountains of Pennsylvania, where he enjoyed some splendid fishing and obtained a much-needed rest at the same time. Yahn & McDonnell, distributors of Antonio y Cleopatra, report a marked increase in the sale ot An- toni.) v Cleopatra Tonys, retailing at two tor twenty- five ^nts, and Princess sizes, retailing at ten cents. This would appear to be a sign of better times, since the Class C sales have been conspicuous by their ab- sence during the past few years. William Anderson, factory representative for the American Tobacco Company, promotmg the distribu- tion and sale of Antonio y Cleopatra, has returned from a trip to Baltimore and Washmgton distributors and retailers, and reports his brand enjoymg a splen- di(l demand in that territory as well as m Phdadel- phia. Cigars and Cigarettes Up in May HE followiiiir comparative data of tax-paid products, indicated by the monthly sales of stamps, are issued by the Bureau, (figures for Mav WX} are subject to revision until published in the annual report.) -May- Products Cigars (large) : (lass A . . (%ss B .. dass r .. (Mass 1) .. Class E .. .No. . No. . No. . Xo. .No. 1935 357,079,020 r),3SS,4(K) 4o,()r)r),(i40 3,;U5,21H 2(52,182 1934 322,307,280 4,884,187 49,1()3,302 3,859,552 235,616 C Total (small) 407,731,360 380,449,937 N <). 15,893,467 248,7(K) 22,774,000 4,275,617 11,174,076,147 3,299,653 25,756,129 Cigarettes (large) .No. Cijrarettes (small) .No. 11,708,<.)(),4()0 Sntiff, mfd Lbs. 3,184,969 Tobacco, mfd Lbs. 27,41 <,91o Tax-paid jiroducts from Puerto Kico (not included in above statement) were as follows: — Ma If — Products Cigars (large) Class A . Class B . Class C . Total .No. . No. .No. 1935 4,229,310 154,100 64,8(M) 4,448,210 Cigars (small) No. Cigarettes (large) .No. Cigarettes (small) .No. 400,000 40,(>0<) 440,tKK) 1934 3,977,050 112,500 66,000 4,155,550 UH),000 2(K),(MM) Tax-paid products from the Philippines (not in- eluded in above statement) were as follows: Products Cigars (large) : Class A No. Class B No. Class C .No. Class D No. Class E No. Total Cigarettes (small) .No. Tobacco mfd Lbs. 193d 15,048,240 11,697 11J26 10 15,071,173 92,850 1934 13,696,775 30,907 7,91KJ 13,735,582 163,fKM) 5 May Cigar Withdrawals 1920 to 1933 Inclnsiye May 1920 1921 1922 1923 1924 1925 1926 .676,227,828 .555,497,120 . 569,208,725 .575,915,851 . .5.53,319,52f > .514,509,040 . 507,253,431 Mav 1927 1928 1929 Internal Revenue Collections for the Month of May — May — Source of revenue 1935 1934 ( .„ "ars : $l,016,()87.i)l $993,99!). 19 ■ ;; rettes 35,134,985.64 33,553,593.08 slmtT 573,294.53 593,937.52 Tobacco, c h e w i n g and ^^ ^^ . ^ , smokinK ..•• 4,935,690.51 4,636,604.18 Ciirarette ]> a p e r s and ^„ ^„ tubes 65,401.73 87,537.13 :\Iiseellaneous, relating to ^.„^^ tobacco 493.65 253.17 1931 1932 540,873,508 541,500,682 ,572,412,549 .523,775,16:3 . 467,299,661 ,368,553,366 1933 ....371,372,981 Detail of Collections From Agricultural Adjustment Taxes and Tobacco Sale Tax Total from July Month of 1, 1934 {fiscal Commodity May, 1935 year 1935) Tobacco (tax etTective Get. 1, 1933)— Processing tax ...... $3,738,(K)4.03 $29,841,680.94 Import compensating taxes 13,175.68 217,997.41 Floor taxes 8,802.39 321,010.69 Total, tobacco . Tobacco sale tax. . . $3,759,982.10 $.30,380,689.04 $20,656.93 $3,229,243.25 FORRISTALL HEADS A. T. CIGAR SALES HlldP M. FORRISTALL, long connected witii Waitt & Bond and for tbe last tbree years in eliarge of sales of tbe Congress Cigar Co. and the Porto Rican-American Tobacco Co., has resigned his positions with those companies to head the sales organization of the American Tobacco Com- ]>any's domestic cigar department. This change fol- lowed the decision of the American Tobacco Co. to nuirket its cigars through a separate sales force in- stead of through the same organization that sold its cigarettes and tobaccos. Speaking of his twenty-three years' association with Waitt & Bond, Mr. Forristall said: '* First, I was a cigar peddler, tacking up signs and posters, doing missionary work and generally trying to make people smoke two Blackstones where they had smoked one before." He became sales manager of the company m 1920, with the offiee of vice-president. With the amalgama- 1 ion, he became vice-president of the three companies, in charge of sales. J. M. Porter, president of the three organizations, paid the following tribute: "It was a terrible blow to us when the proposition came of losing Mr. Forristall. He has been a tremendously valuable man in our or- ganization. He has a splendid personality and char- acter, and we had learned through long years to love and trust him for his personal characteidstics. Nat- urally, we hate to see him go, but the opportunity that has come to him through the American Tobaceo Com- pany's offer is so outstanding that, as good friends of his, wx' could not advise him to refuse it. He has ^''//vi DILL'S BEST AND AND NOW ON Columbia Broadcasting System Coast-to-Coast • Monday Nights S«< yout local Monday .v.ning program li.ling. MODEL TOBACCOS U. S. Cigars Up 182 Millions in 11 Months Cig:ars : Class A— United States Puerto Rico . Philippine Is. First 11 3/n.s-. Fiscal Yr. lifo5 3,600,761,380 + 51,704,185 — 182,435,760 — — Decrease -\- Increase Quantity 220,198,060 1,943,14') 33,188,905 Little Ciprars: United States Puerto Rieo . Philippine Is. 173,723,147 - 37,546,840 2,340,000 — 380,000 16,800 -f 16,800 Total 176,079,947 - 37,910.040 Total . • ■ * • 3,924,901,325 + 185,066,010 Cigarettes: United States Puerto Rieo . Philippine Is. Class B— United States Puerto Rieo . Philippine Is. .116,362,703,469 +11,856,671,410 3,623,570 — .V26,23i) 1,552,440 - 131,410 Total 116,367,879,479 +11,856,013,770 60,580,733 + 1,849,850 — 490,950 + 26,030,361 627,750 272,709 Total ... Class C— United States Puerto Rico . Philippine Is. • • ■ • 62,921,533 + 25,675,320 Total • • • • 467,350,712 — 637,2(K) — 229,590 + 468,217,502 ~ 58,350,708 252,980 1,672 58,602,016 Class D— United States . . Puerto Rico Philippine Is. . . 35,608,227 — 4,543,662 1,5(K1 + 5CM) 3,427 + 1,227 Large Cigarettes: United States . . Puerto Rico .... Philippine Is. . . X otai SnutT (Ibs.):^ All I ' . S Tobacco Mfd. (lbs.): United States . . Philippine Is. . . Total 2,263,443 376,(K)0 900 2,640,343 33,713,093 276,629,226 16 86,072,874 479,091 3,794,529 — 845,912 4,258,093,826 + 54,192,735 — 183,161,482 — 182,489,360 2,823,375 32,914,518 Grand Total.. 4,495,448,043 + 146,751,467 PHILIPPINE IMPORT TRADl OTAL imports of tobacco product* into the IMiilippine Islands during 1934 were valued at 5,853,802 pesos, an increase of 38 per ceid. over 1933. Cigarettes accounted for 4,356,387 pesos, and leaf tobacco 1,020,950 pesos. Netherland India supplied leaf tobacco valued at 124,732 pesos, but the United States supplied the rest and all ot the cigarettes. Imports of tobacco products m 1934 and 1933 were valued (in pesos) as follows: From the United States 5,714,657 (4,169,254 in 1933), Netherland India 124,733 (55,78:) in 1933). Others 14,412 (lu.lO) in 1933), making a total of 5,853,802 pesos in 1934, as compared with 4,240,219 pesos in 1933. (Trade Com- missioner J. Bartlett Richards.) Tkt T9kme0 W»rid Self -Government for the Wholesale Trade (Continued from Page 6) of an industry are helpless in coping with adverse economic conditions where they act individually and ,i(,t collectively. Trade associations, industrial groups or any other ri-mented units are imperative and indispensable in this present-day of economic pursuit. ^ . . , ,. A__We will endeavor to obtain State legislation. B— Wo will concentrate upon Federal legislation. P—'Wo will exert everv legitimate, honest and ...niscientious etfort to obtain aid and co-operation from the manufacturers. D_\Ve will inspire and sponsor legislation pro- vidincr for the elimination of 'Moss-leader" practices, wliich practices— as we all know— tend to monopolize distribution into fewer and fewer hands. K_We will maintain an aderpiately competent crew of men in the field to arbitrate, to reconcile, to fompose and adjust difficulties and diiTerences arising among members of our industry. p_\Ve will foster policies and suggestions de- si«nied to preserve the small retailer in business for he is'our customer— he is our outstanding and most val- uable asset. The above merelv eml)odies a succinct summary (»r the possibilities, objectives, ideals and intention:, (,f a modern, fearless and courageous trade associa- tion. Organization first— The present form of NATD division will be maintained. Where there are no divisions, now divisions must be formed. The re«iuirements tor an X\T1) Division remain the same. They are: A di- n.'ctorate of seven (7) members of the wholesale t(,bacco trade may apply for a charter as a division of the NATD, provided thev are each individual niem- licrs of the Association. Of these seven men, four shall serve as officers: ])rcsident, vice-president, sex;- retary and treasurer. Three shall be members ot the boR^. Such divisions shall be known as the .. .... . . (Trade area name) Division of the ^AilJ. kecoful—V^horovf^r there is an NATD division, an allii'd division of distributors not on dire^ list of large cii^arette companies shall be formed. The for- mation of the allied divisions shall l)c along the same lines as the original NATD divisions— a seven (7) member directorate with four (4) officers, etc., etc. Such division shall be known as • • • • • (Name of citv or area) sub-jobbers division ot the NATD industrial self-government plan. r^i^^_The four (4) officers of the regular NATD divisions and the four (4) officers of the sub-jobbers division will form what is to be known as. ..... ..... (Name of City) tobacco distributors council. This council will be summoned into action whenever a prob- lem affecting lM)th groups needs attention or solution. Tbe presiding officer of this council will be the NATD < fKtrdinator. Ponr^fc— The presidenis of the respective NATD divisions within a State— or an appropriate trading area— will constitute the NATD State govcrmnn hoard. The presidents of the various sub-jobbers di- July I, I9SS visions within a State or an appropriate trading area will also constitute a State govermng hoard. The com- bination of these ({overnment boards of distributors shall be known as the tobacco distributors council of (Trade area or State). When- ever a joint meeting of the two (2) groups should be deeincd necessary, the presiding officer will be the NA Tl) coordinator. Final— ^^hw^ will be crystallized w^ell-welded, conii)rehensive local and State groups, for the pur- pose of reconciling any local difficulties or state-wide issues. The State gVoup will also be admirably e00 of the third one million ,t)00 the rates shown above shall be paid proi)ortionately for actual sales volume figured to the nearest thousand.) Be it prudent or imprudent; be it discreet or in- discreet,— I feel it truly incumbent upon me to set forth to the members of the wholesale tobacco trade a jHMsonal expression reflecting the present status of our trade. Contrary to popular opinion, the decision of the Supreme Court does not constitute a general condem- nation of lawful co-operative etTorts of industries and trades. On the contrary, I am — more than ever— firm in niv belief that through national co-operation, cen- tralized and co-ordinated efforts, this industry is ad- mirably equii)i)ed to preserve its gains and to surge uliead in the face of every obstacle. Leadership is not tested during periods of favor- able economic or social conditions, but during periods of adversity. Only then, does leadership become prey to the most merciless tests. The demonstrated cour- a«je and fortitude of this Association will be the me- dium for preservation and further achievement. Aftei extensive deliberation and analysis of the present conditions, our Board of Directors approached these problems with the utmost determin)ation and assurance. It was resolved to carry on through the National Association of Tobacco Distributors. A Plan was evolved, designed to finance the Association, and \\m> enable it to continue with the old, and proceed with the new. We enclose the basis of financing which has been formulated. While the manifold details of the plan are being completed, its essentials may be expressed succinctly in the following four points: A — Enlistment of the co-operation and assistance of the producer or manufacturer in an effort to pro- tect the ethical against the unethical. B— Sponsorship and promulgation of state legis- lation in every state purporting to extend to indus- n try the same degree of aid as rendered under the Na- tional Recovery Act. .^, .i, c C— Co-ordination of onr efforts with those ot allied industries such as wholesale grocers, wholesale confectioners, and wholesale druggists and in a spirit of uniiied endeavor to sustain and preserve the inde- pendent retailer — our customer. D— Maintenance of competcut personnel in tlic various areas for the pin])ose of further organizing and solidifving the ranks (»f the wholesale tobaccon- ists, and recoiicile whatever difficulties or nusunder- standinsr that may arise. Judging from the many letters and telegrams reaching^ this office, it is evident that the industry wants me to continue my association with these activ- ities. Needless to state, that as tenaciously as I have clung to the ship in the past, I am ready and willing to exert every fibre of my being in plotting our future course. ,, ttt To do so, however, we nee J finances!! We need personnel!! We need organisation! I believe that the wholesale tobacconists of tlu' United States must decide promptly between the fol- lowing courses: Either a lifeless, unanimated paper association, or a national organization of the type which we have had for the past two years. If you desire the former, an attitude of indifference and lethargy, will be iii order. But, if you desire the latter, then you can best I'xpress your interest by returning the enclosed appli- cation blank with your check. Thus will you manifest your attitude and demonstrate your desire to aid the work which is most essential to you at this time. Knowing what is at stake, and the need of con- certed action may I anticipate a personal expression I'roni you on this subject within a week, at any rate not later than June 22, 1935 T Pending the adoption and commencement of op- erations under the new plan, may I counsel you to please observe the following: A — Maintain wage and hour provisions as con- tained in the code. J3 — Maintain fair trade practices as embraced in the code. Q — :Nraintain the gains attained under the code. D — Work in harmony with your fellow distrib- utors within your trading or business area. Planting: and Trade in Canada HATHER conditions in ('anada, and the usual difficulties from insects and other deterrents affecting young tobacco i)lants, have somewhat retardeil the ])lanting of tobacco for this sea- son. Present indications are that approximately 41,0UU acres will be planted in the Province of (hitario, the principal source of tlue-cured and other better grades of tobacco, compared with ;','2,24!) acres in 1934. The total acreage in Canada to V)e planted in tobacco will approximate 49,r)(M), an increase of about 20 per cent. As reported to the Tobacco Division, Department of Commerce, by American Commercial Attache H. M. Bankhead, under the ju-ovisions of the Tobacco Mar- keting Board the acreage of l)oth flue-cured and hurley tobaccos are being regulateil this season, but there will l)e no regulation on the i)roduction of dark tolmcco. In Ontario there will be 29(K) acres plantee tobacco to cigar varieties. This change will increase by 10 per cent, the acreage of cigar leaf tobacco in Quebec. Statistics from January to April, 1935, inclusive, show that exports of leaf tobacco were 5,222,874 pounds, an increase of 1,1(K),645 over the same period for 1934, and in this total, flue-cured, at 2,910,133 pounds, was 1,361,822 pounds in excess of the same period in 1934. Total exports of all types of tobacco from May, 1934, to April, 1935, inclusive, amounted u to !>,807,0.w pounds, an increase of l,478,tK)4 pounds (»ver the same i)eriod for the preceding year, the in- crease being in flue-cured tobacco. Practically all of the exports were to the United Kingdom. The import figure of flue-cured tobacco from January to April, 1935, from the United States, at 1,953,348 pounds, was an increase of 300,673 pounds from 1934. There was also an increase in the imports of cigar leaf during that perioil, from 39,0(K) to GG,(K)0 pounds. From May, 1934, to April, 1935, inclusive, there were imported from the United States 9,309,7 li) pounds of tobacco, of which 8,453,293 were flue-cured, which was an in- crease in this type of 977,477 pounds. The increase of release of cigarettes for consump- tion from Mav, 1934, to April, 1935, at almost 5,000,- mH),(KW) cigarettes, an increase of 553,(KX),01K) over the preceding period, would indicate increased purchasing power on the part of cigarette smokers. Interest in the United Kingdom has continued gen- erally in Canadian tobacco during the past few months, the chief restricting factor being the relatively high price compared with other tobaccos. The stocks of Canadian tobacco reported on hand in the United King- dom at the end of March were reported as 20,750,743 l»ounds, which is computed as approximately two and eight-twelfths years* supply. The proportion of Empire tobacco to all other tobacco cleared for home consumption in March, 1935, was 22.35 per cent., as compared with 21.35 per cent, in January. In the tobacco business of Canada, the upward trend in evidence during the past year continued through March and April, despite seasonal declines during the first quarter of the year. Consumption of all forms of tobacco during the first four months of 1935 was 10.4 per cent, above that during the same period in 1933, and 4.3 per cent, above 1934. Slight decreases were recortled in the consumption of cut and plug tobaccos, but these were more than compensated for by the greater consumption of cigarettes and cigars. This would seem to indicate an increasing tendency to the use of more expensive forms of to- bacco, a reversal of the trend during previous years. Tkf Tobaeeo WofU AMERICAN TOBACCO ON THE LIVERPOOL MARKET Stocks of American tobacco at Livei-pool at the end of April, 1935, amounted to 103,909 hogsheads, as compared with 105,344 at the end of March, and 92,886 at the end of April, 1934, thus showing little material change in comparison with the previous month, but an increase of nearly 12 per cent, in comparison with the previous year. Stocks in Great Britain totaled 159,317 hogsheads at the end of April, 1935. Liverpool stocks at the end of April, 1935, consisted of Virginia leaf 70,372 hogsheads, Virginia strips 30,720, western leaf 1497, western strips 1312, and Maryland 8. KALTREIDER'S HAT IN THE RING D. Frank Kaltreider, well known cigar box man- ufacturer of Red Lion, Pa., has tossed his hat in the political ring in that territory and will be a candidate l(»r Registrar of Wills at the next election. Frank was a close second in the last contest and his many promises of support in the coming fray indicate that he will be a winner. WILLIAM E. UPTEGROVE PASSES William K. Uptegrove, dean of cigar box lumber manufacturers, and president of the Uptegrove Lum- l)er Comi)anv, passed away on Wednesday night, Jun»» 26th, at his residence, 39 (iakley Avenue, Sunnnit, New Jersey. Mr. Uptegrove was born May 6, 1852. Services were held in the Community Church, Summit, N. J., at 3.30 P. M. daylight saving time, Sat- urday, June 29th. HARRY BOSTON DIES Harry Boston, well-known pipe representative for many years in the eastern part of the United States, passed away on June 17, in the Sydenham Hospital, New York City, following a severe illnes-. He was well known throughout the trade as for- mer representative for many years for Wm. Demuth & Co., and more recently as representative of the Na- tional Briar Pipe Company. He was well liked by all who knew him and will be sadly missed by his many friends.^ Funeral services were held on Wednesday, Jun© 19th. He is sur^'ived bv several brothers. BORNSTEm ASSISTANT AT G. H. P. Sol Bomstein, of the U. ii. P. Cigar Company's Midwest sales staff, has been appointe,«f.ctur.d by ^^ SANTAELLA & CO. Office. 1181 Broadway, New York City FACTORIES: Tampa and Kep West. Florida OUE HIGB-OEADE NON-EVAPOIATINO CIGAR rLX\ORS^ ^^^^^^ .„ ,,„.^„ and Impart a moat palatable flavor FUYORS FOR SMOKING tiid CHEWING TOBACCO FRIES & BRO.. 92 Reade Street. Nc^ York Classified Column The rate foi thii column u three cent. (3c.) a word, with a minimum charge of .cventy-fiT. cent. (75c.) payable strictly in advance. POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large followmg. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON Automatic Machines, wants a position. Also instrucU begmnert. Address Box No. 558. "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to restaurants and cafe t«Ai. Would like to specialize in 5 and 10 cent cigar, under «y own brand. Manufacturers communicate with me in reference to worth-while Ime. Hugh Donowick. 242 Milnor Ave., Lackawanna. N. Y. ^^ CIGAR FACTORY FOR SALE Tobacco Merchants' Association Regi OHIO CIGAR FACTORY EST. I860. FIRM RETIRING. Brands are all modem, well advertised in local market and produc- tion now about ten thousand per day-capacity forty thousand We have discounted all our bills to date and we are w.llmg to sell at a very r^Kmable price. Address Box No. 581-The Tobacco World. HAVANA CIGARS BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT LOVE-Ad«vt M your .logan. "Kia. your beer, but lore 7<^^ MT." Specially those Havana blended, "C^ood to the last Fi^ MMufactured by A. Ramirez & Co., Po.t Office Box 1168, Tampa, fift. Write them for particulars today. n 341 Madison Ave. istration bureau, new york city Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Begistration, Search, Transfer, Duplicate Certificate, (see Note A), (see Note B), $5.00 1.00 2.00 2.00 Note A-An •IIow.bc. of %2 will be in.de to member, of tb. ToUeeo Mef eh.nt>' A»»ocimtion on e.cb ret»»tr.tion. „^..,it«te. the rcportinc of more Note B-If . report on . •e.rcb of . title °«f*""™**.V,".* ",**^lL of Dm th.n ten (10) title., but leie th.n twenty-one (21). .n .ddltion.1 eMft* «» *^ Do" ;"$lJS) will be m.de. If it "^"^"i" »5S JS;:.7rb.«.Tf'Ti^^^ (20) title., but le.. tb.n *J»«rty-o?« <">s" •'''*'*^?°AL ''^f.r (tl OO) will b« (12 00) will be m.de .nd w .n .ddition.1 eh.rf c of One Doll.r Wi.w; win ■« made for every ten (10) .ddition.l title, nece.wnly reported. REGISTRATION RHYTHM :-^»6.467. For all tobacco products. Inc., Toledo, Ohio, May 31, 1935. Crimson Coach, TRANSFERRED AMvoTraW WAY l.=>, 1 K15 hii^4^Frr *"«% VOLUME 55 No. 14 II k. rt 1 1 a II B^yi a§ ^JtMMit^^ COMMON SENSE The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufa^ircr. 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 invitmg package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phi la., Pa. Hanovtr, Pa. Cincinnati, Ohio York r^a AUTOKRAFT BOX CORPORATION c/,,^^^^ ,// Lima Ohio Detroit, Mich. A NatioixWiAc Service Wheeling. W. V». ♦■ ■ ■ iiiiiiiiiHiiiiiiinniiimi^ iiiiimiiiiiiiiimiiiiiiimmTTTi PUBLISHED ON THE 1st AND 15TH OF EACH MONTH AT 236 CHESTNUT ST. pHILA.. PA m Ridd hcloiv II hat these jamous athletes say about Camels nil r 111 \.ii.i iiiy wind — ii...i . I Off 111 ivi -!iirf the It : 4 mildiiv$i that uill J)hii$e yoit too! S> y the Agricultural Adjustment Act itself for the estabhsh- ment of such rate. The Act provides in Section 9 (c) that the tax is to be at such rate as equals the difference between the current average farm price for the com- modity taxed and the fair exchange value of that com- modity as defined in the Act. As averred in Paragraph <; of this Bill, the rate of tax for cigar leaf tobacco whicli has been in effect continuously from October 1st, 1933, is ^ per pound farm sales weight, and is the rate upon which the tax was assessed against the plaintiff for the vears 1934 and 1935. Ct3 CJ3 CJ3 is informed, believes and there- that for the 1934-1935 market- the average fann price of cigar leaf tobacco is and will l)e 16.5^ per IHjund unsweated farm sales weight; that the fair exchange value therefor for said i>eriod as calculated is 16.8^ per pound unsweated farm sales weight ; and that the resulting difference which repre- sents the excess of said fair exchange value over actual LAINTIFF fore avers ing season farm price of cigar loaf tobacco is three-tenths of a cent per i»ound unsweated farm sales weight. Plaintiff is advisi'd, })olieves and therefore avers that the levy of the tax at the rate of 3^ per pound farm sales weight, for such taxable period is arbitrary, capricious, oppres- sive and in disregard of the standards prescribed by the Act of Congress, even though such Act be assumed to be valid; that such tax is void by reason of the failure to <)l>serve such standards, is in excess of the authority conferred upon the Secretary of Agriculture, and is en- tirely un justified even by the scheme outlined by the Act.'' — ft — — ** — — ft - Cj3 Cj] Cj3 HE petition then goes on to list specific reasons attacking the constitutionality of the proces- sing tax, and continues: "An actual and im- mediate controversy exists between the plain- tiff and defendant. The tax w^hich under the provisions of the Act w^ould be due for the month of ^lay is $34,- 540.90. Said tax has not been paid for the reasons herein stated. The failure to make such payment on or before the last day of June, 1935, subjects the real and personal property of the plaintiff to lien and to dis- traint and sale for the amount of the tax, together with interest and penalties. The plaintiff has already paid, under protest, processing taxes from October, 1933, to April, 1935, inclusive, totalling $557,088.47. Plaintiff is informed, believes and therefore avers that it has no certain and satisfactory remedy at law to recover said taxes or any additional taxes that may be subse- quently assessed against the plaintiff and paid by it. Plaintiff is further advised, believes and therefore a%'ers that even if it should recover a final judgment for taxes paid, the Government may nullify the effect of such a judgment by refusing to make the necessary appropriation to pay the amount thereof. ^loreover, the ])laintiff is atlvised, believes and therefore avers that on June 18, 1935, House Bill No. 8492, making cer- tain amendments in the Agricultural Adjustment Act was passed by the House of Representatives of the United States and referred to the Senate. One of these amendments provides that no suit at law shall be enter- tained by any Federal Court for the recovery of any processing tax collected or assessed prior to the effec- tive date of the amendment, unless such suit at law shall have resulted in a final judgment or decree in favor of the taxpayer prior to the effective date of the amendment; similarly that no refunds shall be made by the Treasury Department. Plaintiff avers that it will be unable to prosecute such suits at law to final judgment before such Act becomes effective. Plaintiff is further advised, believes and therefore avers that should this proposed amendment become a law, plaintiff will be deprived of any remedy at law by the express terms of the amendment, and therefore will be unable to test the validity of the tax in any proceed- ing whatever, unless the relief prayed for in this Bill be granted." Th. TOBACCO WORLD (established 1881) U published by Tobacco World Corporation; Hobart B. Hankins, President and Trcasuiw; December 22, 1909, at the Post Office, Philadelphia. Pa., under the Act of March 3, 1879. S. Clay Williams Discusses Proposed AAA Amendments Bayuk Begins Test on Processing Tax OINCIDENT with the aiiiioiincoiiiont that the Agricultural Adjustment Administration had be*en temporarily restrained from collecting tobacco processing taxes from two cigar firms here, a most interesting and concise discussion of the proposed amendments to the Agricultural Adjustment Act, compiled hx S. Clay Williams, of the R. J. Rey- nolds Tobacco Company, has been issued in pamphlet form and excerpts are reproduced herewith as being of vital interest to all members of the tobacco industry. Mr. AVilliams states: "The principle that it is not unfair to the public— the great consuming group— for them to pay, for the goods for which they use, a price which includes at least a paritv return to the produc<^r of the raw ma- terials wliicli they consume, has a moral quality, an appeal to good sportsmanship, and at least a plausible appearance of economic soundness which has gained— and it would seem, should have gained— fOr it a rather full acceptance and support both at the hands of proces- sors who under the present system meet the burden m the first instance, and at the hands of consumers to whom presumably in all cases, and actually in some cases it is passed* on." . . . , - . , *'The stated principle, intelligently and fairly ap- plied, commends itself as having capacity, under cir- cumstances that have prevailed and still to some ex- tent prevail, to serve the cause of maintaining a more equitable position in the national life for various im- portant producing groups who at one time or another may need the protection of its application. ' **The declaration of purpose set forth in the Act, as now in force, is to re-establish prices to farmers at a level that will give agricultural commodities a purchas- ing power with respect to articles that farmers buy equivalent to the purchasing power of agrioultural commodities in the base jieriod. ... "And then, to protect the consumer against untair levies in behalf of the producer, it was provided by the Congress that remedial actions should *Not increase the percentage of the consumer's re- tail expenditures for agricultural commodities . . . , which is returned to the farmer, above the percentage which was returned to the farmer in the pre-war period . . . .* "In the law as it now stands the consumer is pro- tected by subsections (2) and (3) of Section 2 in the following form: . "(2) To approach such equality of purchasing pow^er bv gradual correction of the present inequalities therein at as rapid a rate as is deemed feasible in view of the current consumptive demand in domestic and for- eign markets. *'(3) To protect the consumers' interest by read- justing farm production at such level as wdll not in- crease the percentage of the consumers' retail expendi- tures for agricultural commodities, or products derived therefrom, which is returned to the farmer, above the percentage w-hich was returned to the farmer in the pre-war period, August 19(^-July 1914." **As a first piece of ground-clearing necessary m order to establish the possibility of applying the newly proposed principle which so vitally affects the position | and rights of the consumer, the proposed amendments would strike out the above quoted subsections (2) and (3) of Section 2 and w^ould insert in lieu thereof the following provision, which appears as subsection 2 of Section 1 of H. R. 8492: '(2) To protect the interest of the consumer by (a) approaching the level of prices which it is declared to be the policy of Congress to establish in subsection (1) of this section by gradual correction of the current level at as rapid a rate as the Secretary of Agriculture deems to be in the public interest and feasible in view of the current consumptive demand in domestic and foreign markets, and (b) authorizing no action under this title which has for its purpose the maintenance of prices to farmers above the level which it is de- clared to be the policy of Congress to establish in subsection (1) of this section.' **It is to be noted that the amendment proposes to lav upon the Secretary a left-handed requirement that he* protect the interest of the consumer, in a negative way, by 'authorizing no action under this title which has for its purpose the maintenance of prices to farm- ers above the level which it is declared to be the policy of Congress to establish in subsection (1) of this sec- tion.' "... In summing up his discussion, Mr. Williams asks : ** Where does the issue on these amendments liet *'Tliis brief includes no criticism whatever of processing taxes as an instrumentality used or to be used to secure for the growers of agricultural commod- ities consumed in this country a parity price therefor. *'The issues discussed herein lie beyond that point. The interest of the producer is already being served under that principle which stands established in the original Act. **It'8 something else that is presented by these amendments : **(1) The Congress is being asked to do the revo- lutionarv thing involved in throwing away the original concept of the Act to the effect that it is fair to call on the consumer to take an added burden in order that a producing group may have parity, and to go forward to the proposition that now and hereafter consumers are to be called upon to continue to take that additional burden after the producing group has been lifted to parity. And it is not demonstrated that in this process even the producer would be benefited. It is easily pos- sible that he may have to suffer some of the hurt that by this process is guaranteed to the consumer. But apart from that: By every test by which the original funda- mental was fair and sportsmanlike and possibly sound, this new concept must be held to be unfair, unsports- manlike and grossly unsound. •* (2) Congress is also being asked— blatantly asked to stoop to cover up for an administrative unit which, through its practices in the two years it has been in operation, has not only disregarded limitations plac^ upon it by the Act of Congress but has done so de- fiantly, and in just as arbitrary a manner, has even X July 1st the first objective in the fight to test the constitutionality of the tobaeeo processing tax was won by BayukCigars, Iiu., and Bol)row Brothers, when a temporary restraining order was granted by the V. S. District (V)urt here preventing the Agricultural Adjustment Administration from col- lecting the ])rocessing tax from the two firms. Bayuk and Bobrow in se|)arate suits assailed the legality of the tobacco jirocessing tax of lhre<> cents a pound, and their suits ade necessary for the joblwr to affix the stamps to each package of cigarettes sold within the State of Pennsylvania. Every retailer of cigarettes in the State will Ik' required to obtain a Stale license to sell cigarettes, which license will cost $1.00. Every retailer of cigarettes will also be required to secure and affix the stamps to every package of cigarettes he has on hand at that time to be sold on and after that date. The stamps will Ik» of the decalcomania type and will {yv in denominations of 1 cent, 2 cents, 5 c«nts and 10 wnt8, and will be sold to the distributors at a dis- tant of 7Mj V^v cent, in order to compensate the dis- J»ty t$, I9S5 trihutors for the extra expense entailed in affixing the statnps to each iiackage. Followintr the imposition of the State Sales Tax on riirarettes, the money value of cigarettes sold will nn! be required to be reported on their report of gross sales for mercantile license purposes. Since the State of New Jersey imposed a retail gales tax of 2 per cent, on all retail sales wnth the ex- ception of milk, on July 1st, it is not anticipated that any irreat difficulty w4li be experienced in the bootleg- ginir of cigarettes into Pennsylvania from that State, since each package of cigarettes retailing at 13 cents or more in New Jersey will be taxed 1 cent by that Slate. Mr. Fitzgerald, at the al)ove address, will be glad to assist anv retailer or jobber in this territory in com- plying with" the new law, and State Revenue Depart ments in other parts of the State will do the same in their respective territories. MIA. f)nibAt)EL2 BAYUK BUSINESS BRIEFS KX KIIHMAX, assofiatinl with f]hiinaii Bros., Horn & Co., Hayuk distributors in the San Francisco torritoiv, rceontly visited headquar- tt'is vu route to Europe. He reported Bayuk brands enjovinu a line demand in his sector . . . Lay- ton ('iuar'Co., Pennsirrove, X. J., report Plullies mov- in«»- spTenhia branch . . . (^^^.^^ right, B. S. (Bavuk salesman) reports a healthy demand for all the companv's brands in the Elizabeth, X. J., terri- toiv where M.Berircn & Son are the distributors . . . Harry Kiee, of X. Rice Cigar Co., Pittsburgh distribu- tor, was a weekend visitor. BORNSTEIN ON G. H. P. JOB ||XE of tlie unfailing signs of good management comes to light when tliere is an imix)rt ant exec- utive post which l»ecomes vacant by resigna- tion or otherwise. That is what hai)pened with the departure of Dave Jenks from the roster of the G H P. Cigar Companv. The comi>any was immedi- atelv prepared to till the vacancy by the appointment of Sol Bornstein, who for vears had been groomed for just such a contingency by Frank Will, executive vice- president in chanr(' of sales. Mr. Bornstem was here last week familiarizing himself with the duties of his new office, before returning to Chicago to complete his work ill that territorv. His preliminary work here in- cluded surveys of the Newark and New York terri- tories with Messrs. Prank Lynch and Prank Cohen, respective managers of those sectors . . . The tradi- tional good time was had l)y all at the annual picmc of the O. H. P. Cigar Co. at Elkins Park. Swimming, sports, and, of course, eats, played an important part in the day's festivities. Six members of the firm and office force of Yalin & McDonnell treked to Barnegat Bay last Sunday for a day's fishing (at least that's what they claim) and re- turned with two fish and about fifteen eels. Messrs. Pappero and Matchett caught the fish, and the others just** fished". Trade Notes F \V Sonnnerfeld, of tlu' F. W. Sommerfeld Cigar Companv, Miami, Fla., was in town last week visiting the distributor of his brands, .l(.hn Wagner & Sons. Xeil Marx, of (lonzalez and Sanchez, Jacksonville, Fla was a visitor at the M. .1. Dalton head«iuarters last week in the interest of his brand. Mr. Marx reports a nice increa.se in Class C demand. Abe Caro, genial ambassador of the Optimo fac- torv was in town last week visiting Yahn & McDonell locid distributors of the brand, and was highly gratified at the demand for his product in this territory. William Anderson, representing the American To- bacco Com])anv, is visiting the South Jersey seashore l>oints in the interest of Antonio y Cleopatra, and se- curing some nice orders for his brand. (Jeorge Stocking, of A range y Arango, Tampa manufacturers of the Don Sebastian cigar, was a \asi- tor at John Wagner & Sons, local distributors of the brand, last week. Mr. Stocking expressed himself as well i>leased with the volume of business on his brand. John L. McOuertv, of Romeo y Julieta factor>% and the Preferred Havana Tobacco Co., was in town li^t week, having just returned from a trip to the Pacific Coast in the interest of his brands. Mr. McQuerty re|»orted an excelh'iit demand for his brands. All Yahn & McDonnell stands in this city are dis- plavin*' the Blackstone cigar in their window and show- cases Uiis week, with exc^^'llent results. The recently introduced Blackstone Yankee, retailing at two for fif- teen cents, continues to enjoy a gratifying demand. Ben Lumlev, Garcia y Vega representative, was in town last week after a trip through Northeastern Penn- svhania. Ben reports business on his brand showing a steady increase throughout this territory, and par- ticularly in the higher-priced sizes. The Tobacco World One of the machines of the Wellman Process . . . scientific high and low temperature and moisture ovem Granger is the only tobacco made by the Wellman Process A great many pipe smokers will tell you about the fragrance and coolness of Granger © I9$5, l*5G«Tt & Mrims Tobm;co COi July 15. 1935 News From Congress _ -AND FtbERAL Departments BANDONMEXT by the Federal Trade Com- mission of its fair trade practice asrreement activities in order that all such agreements niav be liandled by the revamped NRA i> phmned to'niakt- etYective those provisions of the re- cently-enacted recovery lei;islation permitting indus- try' t(> adoi)t voluntary codes. • , i i Concentration of the work in one agency is held l»y Government officials to he desirable as well as nec- essary if there is to be uniformity in the provisions of the aLrreements and in their administratitm. It was also feared that if bt>th the trade conmiis- sion and the XRA were to accept trade i)ractice agree- ments, business groups might play one against th'' other in the elTort to secure advantages, while those submittinu: codes to the XHA might abandon theni and make new airreements under the trade commission sliould tlic fnrifHi's administration be felt to be un- dulv harsh. ' A< a condition to making agreements with the XHA it is necessary that industries accept the bargain- ini; provisions of the recovery law, provide maximum hours and mininnun wages and prohibit child labor, which is not required in agreements filed with the trade commission. Cj3 CtJ (t3 BOPTTOX of the gradnated cor|)oration in- come tax, with rates ranging from 1^) to 17Vj per cent., as a substitute for the present flat tax of 13'34 ]>er cent., recommended to Con- gress by President Roosevelt in his message June ID, is seen In Washington as aifording small business con- cerns much-needed relief. Coupled with this proposal, which is not expected materially to change the Treasury's reveime froni this source, were recommendations for heavy additional taxes on estates, gifts, and net incomes in excess of $l,(KKMKl:). Approval of the new taxes may permit the lighten ing of ih(> burden imposed by the present miscellane^ ous levies, it is believed by Congressional leaders, and it is possible that next se'ssion general revenoe legis lation mav be considered to this end. **The drain of a depression upon the reserves oi business puts a disproportionate strain upon the mod- estly capitalized small enterprise," the President pointed out in his message, in discussing the corpora- tion tax. "Without such small enterprises our com- petitive economic society would cease. Size begets monopoly. Moreover, in the aggregate these little businesses furnish the indispnsable local basis for those nation-wide markets which alone can insure the success of our mass production industries. Today oiir smaller corporations are fighting not only for their own local well-being but for that fairly distributed national })rosperity which makes large-scale enter- j)rises possible. "It seems only equitable, therefore, to adjust our tax system in accordance with economic capacity, ad- vantaije and fact. The smaller corporations should not earrv burdens beyond their powers; the vast concen- trations of capitill should be ready to carry burdens fommensurate with their powers and their advantages. "We have established the i)rinciple of graduated taxation in respect to personal incomes, gifts and estates. We should apply the same principle to cor- j)orations." Ct3 Ct3 tt3 KEKIXfJ to resuscitate the "Buy American" movement. Representative Joseph W. Martin, Jr., of Massachusetts, has reintroduced a bill which lu' originally sponsored two years ago to com|>el advertisers to state in their advertisements the name of the country where the goods they offer were produced, if imported from abroad. "The wav foreign goods have been pouring into the count rv from abroad, and especially from Japan, during the past several years," Mr. Martin declared in discussing his measure, "indicates there is need to take every necessary step to inform the buying pub- lic whether thev are purchasing merchandise produced by our own American workers or by the slave-Wi^e hibor of foreign nations.** ^ CS3 Cjl DDITIOX'AL taxes on employers of labor, eventually to reach 6 per cent, of their pay- rolls, will become effective next year as a re- suit of the adoption of the social security bill bv Congress. ■ Calling for Federal, state, employer and employee contributions, the measure provides for old-age and unemplovment relief for wage earners. Employers will Iw responsible for the payment of Ixith their own and their employees* contrilmtions, be- ing required to deduct the latter from the wage earn- ers' pav envelopes. The tax for old-age pensions will begin at one per cent., for both employer and employee, increasing bv one-half of one per cent, every three years until a maximum of 3 jier cent, is reached m 1948. m {Continued on page 191 BAYUK BULLETIN nrst Issued 1929 pHULOFAX fflw Retailer'8 Friend) SAYS Mr. J. P. Seiber- ling, Vice-President of the SeiberlinK Rubber Co., says that "the ability of the retailer to render personal service, to create a friendly, personal at- mospliorc in his store, is without quest iod in his* territory, as it was too sniuU. He was asked: 'How many people in your territory?' He said he 'didn't know.' He was asked: How many tores could or should handle your i)roduct in the territory?' He said hi- 'didn't know.' How then did he know his territory was too small?" — thus queries a jobber from eastern New York SUte and Phil's answer is, "I don't know I" Phil asked a friend of hia what kind of a salesman Soandso was and the friend ^aid, "Well, he's all right if he didn't liive baggy pant$." For a mo- ment I'hil was stumped, but Phil finally mt the point. Do you get itl One dealer advertised and boM 5c cigars for 3c. Then another dealer cut to 2 f.r 5c. Then both sold for 2 for 5c. S.Tiart? Yes, with S for Silly; M for Monkeybrains; A for Asinine; R for Ridiculous, and T for Thickheadal A pood sign in a cigar ttore and 111 bet it geU business. It refda-- "GoinK away? I'll guarantee safe de- livery of your favorite brand when ud where you say!" lULY 15, 193-, Published twice a month CONFESSIONS OF AN OLD TIMER CHAPTER X A. S. K., a Jobb«P. f«ti this quee- tioB: "Should you make sales quota for your salesmen or should the iwf^ men make their own quotas? rnu favors the latter . . . however, no mat- ter who nuOces the quoU, the •»«•- men should MAKE the qwrtiu Tal» your time! — o — Some questioni from Jobben are a little delicate to answer— look at this «ie- "Of his cigar samples, how niany ihould a salesman smoke himself?" In tn olThand fashion, before he m^es *n answer, Phil must first know how nsny $ampU§ Ihe galeimili t«ttl Thwv't toon ihau on« way to mII • Mil him to th.t «»• STAYS .old. And wtut U that way? Ut the Old Tunac toil you in thia inauUmant of tno trua Ufa atory of • vataran aalaamaa. On my way home on train from Headquarters with the new position to "call on the jobbers in so and so states" and sell the new product, I sure was full of pride . . . after bust- ing off three buttons from my vest with a swelling of my chest, I caught myself in time to call a halt before I found fault with my hat being too I was given the job, all fight, all right, but suppose I couldn t hold it ... in a way, 1 wasn't given the job to KEEP. , u . 1 .♦ The giver of any Job simply cwit give you that job to keep ... the fel- low that gets the job is the only one who can keep the job, and even then he can't keep the job permanently un- less he makes the job keep him. Perhaps 1 was getting a little fear- some that I couldn't keep the job and now I realize that the fear was good for me because it stirred up within me the terrible feeling of humiliation if I lost the job, and from that fear sprung up a determination not to lose Of course, mere determination meant nothing unless it was backed up with a willingness to work and a knowledge of what I had to sell. Please don't think it funny how I prepared my knowledge of how to sell my product ... I've changed my mind on a million of my youthful ideas but I Btill endorse the simple plan that I followed on thia particular occasion years ago. / Lay Out My Campaign Here's what I did. When I reached home that night, I got all by myself with pencil and paper and with the product sitting on the table right in front of me. Then. I asked myself the question— "If I were a jobber, whv i^ould I buy that product?" 1 m tell- ing you I had one helluva session thinking up real reasons why I, a job- ber, should buy it, ^"t one by one the reasons came to me and 1 jotted them down and then polished them up so that finally I did have a parade of "reason* why^ a jobber should buv. Who do you think was the first job- ber I called upon? Why, my old job- bing Boss, of course, and did I sell him? Sure, how could he pass up his »». L^ .... jjj m^ DONT LET THE BIG ONE GET AWAY "In the Good Old Summertime!" What does that remind you of, Mr. Retailer? Just an old tune that was popular in the days of "illustrated songs?" Or does it remind you that nine out of nine of your customers my cocky derby hat did start to feel just a wee bit too small! You'll pardon me for so frequently referring to the wisdom knocked into me bv my first Boss, the jobber, but I'll just have to pass on to you what he said to me after he gave me the order. ^^ , u- j "Son," said he, '"had you shipped me that complimentary order for one case, the goods would have laid around here, I guess, for ages. But. in your talk as to why I should buy, you wove in reasons how I could sell and now I see that I should get busy and really give your product some real at- tention ... the order for a case was just a pood- will order . . . I wasnt even half sold when I offered the case order to you, but now I am completely sold and. kid, I'm glad to see ybu starting off on the right track, /or on order hnlf-$old is not told at all. Gee, that was praise of which I was absolutely undeserving for, between you and me, I used up my "talking points" really to get any kind of an Srder and, oh. how, wrong that method is Many an order is taken that should have been forgotten ... we get_the will probably take a vacation this summer — or at least a few week-end auto trips? , Okay. Then, what are you doing to sell them vacation boxes of cigars? Where are those vacation-box displays of yours? Where are those little cir- culars reminding your patrons that a vacation isn't a vacation without ci- gars? Where's your little sales talk beginning: "How about a box of Ci- gars for the week-end?" Why spend all your time fishing for minnows when there are whales just asking to be caught? MERCHANTS OR WAITERS A waiter, so Webster's Dictionary explains, is one who waits; an at- tendant. J , ^ Call the average cigar dealer a "waiter" — and it depends on his dis- position, whether he laughs or pokes you in the eye. But he won't believe you. He is under the impression that all waiters are to be found in restau- rants. But are they? . , , The ordinary run-of-the-mme dealer in- any line is a waiter. He waits tot his customer, waits on him, and then waits for the next customer to come in. Between customers, he waits for times to get better, so that he won t have to wait so long between custom- ers. When you get right down to it-^ running a store is a sort of game be- tween dealer and customer. The cus- tomer wants to spend as little money „^T^b^tVedoTtgitthe•BUSlNESS , we make the sale but we don i ^qj^^t wants to spena as luiie niunt;y CLINCH the sale ... Any oJ^eV.^J^t as he can. The dealer wants to sell or small, which is worth going after, is ^^^ ^^ n^y^h as possible. If the dealer Tkt ftfteM Wvm "old bookkeeper?" Right out hft* before I had a chance to unwma ^'.SlSg tilk. he wid, "I'll give you a complimentory order for a case, no matter what H U.* Ri^forOieWrimgReamm Then I unconsciously pulled a bit of unartness for which I am entitled to Doaitively no credit because the smart- hMi waa not prompted by the proper *" YJ?*iee I had worked ud a lot of '"•eUinff reasons" and I just had to try 'em out on someone . . . 1 suppose sub- consciously I wanted to rehwrse my Ulk or maybe I wanted to "show off to my friwdly former Boss. So, i dinned his ears with rny "reasons why" he should buy and, stnke me pink, when I got through he told me to itnd him five casw iMtWkdff one! Happy? Say, my feet didn't touch ground for an boor and, doggone it. wortTgoing aifter RlGllT! Selling 'Em to Stay Sold Haven't some of us with' ghoulish gl^ It one time or another dragged W we "P«V"».?''*^*L!lIS'a fast Buyer?" Or how "we pulled a lasi one on Mr. Customer?" FolksVwhen we follow tbroueh with goch procedures, we're only ludding ^rselves . . . Your Customer is of as much importance as your Boss ... hisTnterests^nd welfare mu«t be^»^e- miarded and protected ... for as you Knent your Customer so do you pface him in a position to benefit you Shakespeare or somelKwiy ejse once •aid "A man convinced against nis SSl is of the same opinion stil ," Para- phrased into a Batesman s hnp. It reads-" A Buyer sold against his will thinks nil of your P'^^^^'^i ^till. Before we write the order, let s get the order right! Right? ;:i'*d,. OW mS fll. bow h. brokj ^ of th. fund«»«.ul nil« of good Sl.~«kiP «*-Und«l . food ««► expects to win the game he's got to be more than a mere waiter— he's got tc nott'd that during the first five months of 192S, exports of all types of leaf tobacco amounted to 213,208,00n jiounds, valued at $52,147,000, or $24.46 per KM) pounds. Of this amount, Bright Flue-cured amounted to 139,- ;540,(MH) ])Ounds, valued at $41,441,(MM), or $2!).74 aver- a g e; Da r k-fired Kentucky-Tennessee 44,1U,(M)() ])ounds, valued at $r),667,(MM), or $12.S5 average; Dark Virginia, 8,024,000 i)ouiids, valued at >;1,23:mmM), or $15.39 average, and stems, trimmings and scraps, 3,353,(X)0 pounds, valued at $14:),(MM), uv $4..".2 aver- age. It will be n(»ted that 36..VJ i)er cent, of total ship- ments was made in the first five months of the year, and the relationships as regards types were Bright Hue-cured 32.04 per cent., Dark-fired Kentucky-Tennes- see 52.51 per cent.. Dark Virginia^42.9:') \hv cent., ami stems, trimmings, and scraps :>9.7() per cent. Export Volume and Values Start Upward in 1933 Production of leaf in 1933 totaled l,:^,77,r»39,0(MJ pounds, farmers' weights, and leaf exports in VXVl annmnted to 438,936,(KK) pouiuls, a gain of 27,7<7,(MM) l)ounds over 1932. The total value was $82,924,(MH), or $18.89 average, a total gain of $17,022,(HM) over 1933, and the volume based on farmers' weights represented 36.2 per cent, of the crop grown in 1933. Flue-cured shipments gained 42,630,0, Dark-hreci Kentuckv-Tennessee $1.52, and Dark Virginia $2.71. \mon<' other tvpes eximrted in 1934 there was an avera^fjy^g*^' ill 1934, and 18,518,(MM) pouiuls, valued at $830,000, or $4.48 average, in 1933. Total Export Value Increased Over 50 Per Cent in 1934 Total exports of h-af tobacco in 1934 increased 1 !»:;n,(MM) pounds, or h'ss tiian one-half of 1 If r cent., „;,a the tdtal value incn-ased $42,140,(HK), or o0.82 per <-,.„t Tlu- 19:U v<.luiue was 440,8fifi,tXK) pounds, valued at $125,0(i4,tHM), $28.:*>7 average. Leaf i»roduction in 1!):U totaletl l,Ol».j,0t;2.tH»O pounds, farmers' weights, ..lul ou the same basis, exports were 45.^2 per cent, of the vear's prcKludion. Flue cured shipments amoun ed to 69.41 per cent, of exports of all tyi>es and totaled :m5.9H4.(K«). The value was $109,41(),000 or $35.76 average. Shipments of Da,;k-Fired K^»^Vky^Tenues- .... totaled 65,421,(MM) pcaimls, valued at $t),941,0UU, or M$l0.m average, ami Dark Virginia 11,431,(^K) pound^ ■valued at $2,105,IXM), or $18,41 average. Dark-Fired ^Kenluckv-Tennessee decreased 11,153,(KH) pounds, and Dark Virginia decreased 5(»5,(MH) pounds. Shipments of all t>nf>es in the first five months of 1934 amounted to 39.14 per cent, (d* those «* J !;. y;;;;[ and totaled 172,536,(MM) poumls, valued at $3o,b08,tW or $20.64 average. Flue-cured shipments »freased 21,068,00), Dark-Fired Virginia 27,500 acres (25,- (KMi). Marvland :I2,(MM) acivs (32,300), Green River 18.2(1(1 acres (1(;,8(M)), One Sucker 20,500 acres (19,100) and Fastern Ohio 2(H) acres (lOO). Values Increase in the First Four Months of 1935 At the close of 1934 the average export value of all ty)M .. of leaf tobacco sent into the export trade during tiie \.'ar was $28.37. that of Bright Flue-Cured $35.75, Bnriey *12.8.'), Dark- Fired Kentucky-Tennessee $10.61, Diuk' Virginia $18.41, Maryland and Ohio Export $20 4^ (Jreeii Hiver $17.42, (hie Sucker $8.06, and stems, trinunings, and scraps $3.68. At the close of the first f(mr months of 1935, the general average showed only a comparativelv small increase, although individual tvn,.s showed changes. Bright Flue-Cured advanced $;5 7K P.urh'v $:V23, Dark-Fired Kentucky-Tennessee M):^n, Dark Virginia $2.26, (Jreen River $3.72, and One Sucker $1.18. Stems, trimmings and scraps decreased Changes in Average Values The averair*' ex|H)rt value for all types of leaf for th,. ealeiMlar vear 1!)32 was $16.03, at which time the Bri'dil Flue-l'ured average was $19.26, but the general avene-e dropped to $14.29, and the Bright Flue-Cured avera-e had advanced $0.46 over the low mark of $lroaking his nock. He was rushed to tho hosi.ital 1)y iiis friends but passed away earlv on Sundav morning. *For tlio past throe years lie had been covering suburban territory for Otto Eiscnlohr & Bros., in the AAA AMENDMENTS {Continued from Page 4) overridden and disroi-ardod its own siiecific undertak- inirs with citizens with wlmm it has o"' amendments that through the period from The adopti(m of tho original Act to the adoption of these amendments, it was really in a state of abdi- cation in favor of some Administrators in AAA. That is all in this thing of having the Congress now ratify and confirm, and cut otT all possibility of inquiry into, everything that has 1)oen ilone in that period. If Ad- ministrators u{ an Act which is supposed to give the Administrators both their authorities and their limi- tations, can work indo|K'iidently of both and then come back two vears later and have Congress ratify and confirm aiid immunize them against everything that thov have done, both in sins of omission and sins of commission, then, indeed. Administrators are supreme and bureaucracy is lion^ 'M4) And then, arrogantly, the Congress is being asked to lend its aid to a further building up of this kind of thing for the future by now making to this bureau a graiit of power commensurate with that wiiich it has exercised, without full authority therefor, in the period for which immunity is now asked. "(.')) In a word. Congress is being asked through these amendments — and not because of any vital de- ficieiiov of the existing Act for serving the sound legiti- mate ]»urposes thereof — and without that service to the producer^ of this country that is involved under the oriirinal Act— and without that freedom from unfair- ness to the consumer that, too, is a characteristic of the original Act — ^to go forward into territories where there are involved elements of destruction — already I»resented in definite outline by Administrators of tho Act — ^that are perfectly capable of affecting disas- trously tin* standards of living of the people of this country, including both producers and consumers, the freedom of the press, and even that reasonable measure of personal liberty that is essential to American life and business. ** Submitted this 28th day of June, 1935. '» u interest of their brands, and for several years prior to that time he had been affiliated with Yahn & McDon- nell. Ho was well known and well liked for his jovial and accommodating manner throughout the trade in this territory, and will be sadly missed by his many friends. Funeral services were held on Wednesday, July 3d, at tho Oliver II. Bair Funeral Parlors, 1820 Chestnut Street, with interment at New Gleiuvood Cemetery. Ho is survived by his widow, Elva Strong, and two daughters. TOBACCO RESEARCH STARTS AT OXFORD, N. C. LABOHATOHY to work out new methods for controlling insects that injure fiue-cured to- bacco was o])ened, July 1st, at Oxford, X. C., by the V . S. Department of Agriculture. W. A. Shaiids, of South Carolina, a graduate of Clemson (Col- lege, S. C., recently in ciiarge of the field station of the Bureau of Entomology and Plant Quarantine at Grand Junction, Colo., will head the new laboratory. Oxford was selected, says Lee A. Strong, Chief of the Bureau of Entomology and Plant Quarantine, be- cause it is in the center of the flue-cured tobacco region and because North Carolina— with which the depart- ment co-o]>orates in tobacco research — has its main station for such research at Oxford. The Bureau of Plant Industry also has its largest field station for flue-curod tobacco ]>roduction investigations at Oxford. Tho now station will extend the scope of the studies on wilt, root knot, and other serious diseases of flue- curod tobacco, on fertilizer recpnrements of the crop, on improvements in curing, and on new varieties re- sistant to dis€»ase. Tobacco is subject to insect attack from the time tho seed IhhI is started until the cured leaf is smoked, chewed, or snitTed. Fumigants and the suction light trap developed by the department give partial control of insects infesting stored tobacco. Field control of insects attacking flue-cured tobacco has not yet prov^ ent i rely suwessf ul. The three most im|M)rtant insect pests — the to- bacco hornworui, the flea teetle, and the budworm, that infest all t>T>es of tobacco— Bhade grown and bur- lev, as well as flue-cured— will be studied by ^m ento- me tested at Oxford. Entomologists at the new laboratory will study also the mole cricket, the tobacco thrips, wireworms, and slugs, now becoming troublesome in flue-cured tobacco fiel^ Tht Tobaeeo WofU {Continued from Page 6) The levy for unemployment relief will be 1 per cent, of the pavroU the first year, 2 per cent, the sec- ond year and 3 per cent, thereafter, but any employer already contributing to a state unemployment insur- ance system will be given a credit of 90 per cent, ot such payments when accounting to the l^ederal Uov- ernment. . The old-age pension will apply to salaries up to $3000 per year and the amount paid the pensioner will depend upon his earnings and the length of time for which he has paid the tax, with a maximum of $8o per month. Cj3 Ct3 Cj3 ilLL contracts entered into by departments and agencies of the Federal Government after June 30 will be conditioned upon agreement of the successful bidders to comply with such wage and hour provisions as may be prescribed by Congress, under an order just issued by President Roosevelt. , ^ . e ^ Prepared in anticipation of the enactment ot leg- islation requiring bidders for Government business to comply with labor provisions based generally on the i)rovisions of the former codes, the order is intended to prevent any flight from those standards by a sec- tion of industry, at least, in the immediate future. In the case of the War Department, orders have already been issued to all field agencies that no new contracts shall be let pending consideration of the ex- pected labor legislation by Congress except upon ex- press approval from Washington. Other branches ol the Government are expected shortly to issue similar instructions. Industries in which Go%^ernment purchases con- stitute an important factor are strenuously opposing the President's suggestion that contracts be condi- tioned upon the observance of labor provisions, assert- ing that such a requirement would be unconstitutional in the light of the^supreme Court decision m the NKA case, but Justice Department officials who prepared the bill which will be submitted to Congress assert that it will meet all the requirements of that decision. H BOWMAN GRAY PASSES OWMAN GRAY, chairman of the board of the R. J. Reynolds Tobacco Co., passed away sud- denly on July 7th on board the S. S. Kungs- holm cruising in Northern European waters, following a heart attack. u *!, According to an announcement by his brother, James A. Grav, funeral services were held on board the ship on Monday, July Bth, with burial at sea in ac cordancc with Mr. Gray's wishes. He was sixtv-one vears old and had been connected with the R. J. Reynolds Tobacco Company for more than forty years, beginning as a salesman and later becoming Vice-president and president. He is survived by one brother and two sisters in addition to his own immediate family. July IS, 1935 PROFIT BY THE NEVTl DEMAND FOR OLD GOLD A new heavy demand for Old Gold is sweeping the country. New dealers especially hove sensed this trend. They are not only stocking-up, but playing-up Old Golds. The makers of "America's Smoothest Cigarette" are cooperating with a new line of timely win- dow cords and other helps that every Old Gold dealer should have on display. Ask your jobber to help you sell more Old Golds. p. LORIilARD CO., I NC. eOabUtlfd 1760 lit Wlif 40tll iftiit NiW YOtK CITY TOBACCO TRADE ORGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES <^^ JESSE A. BU)CH. Wjejlin.. W. Vj. vici-StSiS g^48l°„%^VE'itS;:f^5l:?::::::;:;::;:::::-.:::::;:;S^^^^ H. H. SHELTON. W..hmgton D C i:;:! Vce-Pretident ^^ HemdquMtM** 34i Msdison Ave., New Korit cuy RETAIL TOBACCO DEALERS OF AMERICA, INC. WILUAM A. HOIXINGSWOR-ra. 233 Bro.dw.r New Y^r^N Y ... .Pr«id.nt ftiffs^lPAo^liJ^^N^'cliSi:^^ ^""""' ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO D^AL^^ TOHN H. DUYS. ICew York City ;;;;;;;;;.Fir;i' Vici-Pre.ident klLTOH RANCK, Uoca.ter. P« ..Second Vice-Pre.ident D. EMIL KLEIN. New York City ....^^reUfy.Tre.i««r LEE SAMUELS. New York City ^^ NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS _ . M__-.w N t Pretident ABE BROWN. 180 Grumman A«..New«rk. W. J. Vice Pretident ALBERT FREEMAN. New York K. Y .Second Vice-Preiident r^^Ei?^^2^'NeT.rN^./::::::::::::::::^^ ^-- RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA^ SaJSJi KSg?^I n: MerVine St:PWt.ii^1pi'^*:"^----- THE NATIONAL ASSOCIATIONS OF TOBACCO ^ DISTRIBUTORS, INC. _...,. Presided. E ASBimY DAVIS. Baltimore. Md. l:--'\^-^"s"y ". Secretary fe ISiSS^Z '6':iJi:i:oir. ^•:'.'..'';..':.:: t.»..« UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION 1} Eatablithed 1886 "BEST OF THE BEST 99 VkmmmlM.ctwA Lii A. SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Ktp Wtst, Florida OUE HIOe-OEADE NONBVAPOIATING CIGAR FJ^AVORS^ ^^^^^^ „d .-ooth i- ch.r.ct.. and Impart a moat palatable flavor FUYORS FOR SHOHHG and CHEWING TOBACCO FRIES A BRO.. 92 Rcade Street. Nc>v York | Classified Column The rate lot thi. column U three cenu (3c.) a word, with a minimum charge of .eventy-fiire cent. (75c ) payable strictly in advance. POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large followmg. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON Automatic Machines, wants a position. AUo instructs bcgmnew. Address Box No. 558, "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to restaurants and cafe trade. Would like to specialize in 5 and 10 cent cigars under ^X o^.f'"^ Manufacturers communicate with me in reference to worth-while Uae. Hi«h Donowidc, 242 Mihior Ave., Lackawanna, N. Y. CIGAR FACTORY FOR SALE Tobacco Merchants' Association T^ • • "n 341 Madison Ave. Registration Bureau, new york city AUGUST 1, 1935 OHIO CIGAR FACTORY EST. 1860, FIRM RETIRING. Brands are all modem, well advertUed in local market and produc- tion now about ten thousand per day-capacity forty thousand We have discounted all our bills to date and we are willmg to sell at a Tery reasonable price. Address Box No. 581-The Tobacco World. HAVANA CIGARS BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT LOVE— Adopt as your slogan, "Ki«« your beer, bat Ufwt 7^^ ^ «rt- Specially those Havana blended. "Good to the Uit Puff, iMBiifactured by A. Ramirez & Co., Pott Office Bo« 1168. Tanif*. fli. Write them for particulart today. Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), Search, (s«« Note B), Transfer, Duplicate Certificate, $5.00 1.00 2.00 2.00 Note A-An allowance of $2 will be made to membera of the Tobacco MW '*-S:;.^rn a7eiVro\'V;:S"oTa tUl. --..iUte. tb.^.PO^-. o^^ tl.»r tea nO) titlea. but leia^ than twenty-one (21). an additional charge «« "J* D^luJ Si S) will be made. If it nece..>tatea the reportin, of «or« than twenty JaO titUa bu7 i.i than thirty-one (31). an •.<.« anv similar period since 1931. The plain lati is fhatwhUe Xre is still room for improvement when we compare the present with 'ho ""'"^y^jf^^*^ much better than the low year of 1933 aad the present year is even better than last. tj3 Ij3 CjJ S has happened in other indu-stries the discon- tinuance of NBA has created in the tobacco industry a situation calling for s°JP« «°;' "^ realienment of trade activities. During tne operation of NKA, the functioning of the Code Author- U^ in many industries absorbed virtually all of the work D™v"ously done bv the trade associations in those rndust^i^er^'A the result that there has been a re- birtli of the activities of those trade associations. And it lias happened that the quasi-quiescence of the trade association has itself suggested new line-ups and new objectives for the future. CJ3 Cj3 Cj3 X the case of the tobacco industry, however, this seems to affect only the manufacturing end. As far as wholesaling and retailing are concerned, the main accomplishment of NRA as we see it, applied to the tobacco business, was that, due to the establishment of the codes of fair prac- tice, these two departments of the industry were ortranized for the first time. Here's hoping that the wholesalers and retailers will continue to benefit from this salutarv boon of organization, and that these trade associations will grow stronger and healthier and more influential. C$1 «3 CJ3 UT, in the manufacturing end, the question has arisen whether there should not be a change in the previous sot-up. John H. Buys, presi- dent of the Associated Cigar Manufacturers and Leaf Tobacco Dealers, is urging re-orgamzation basetl uiK)n more vigorous lines. He points out that iimeh work must be done to meet trade problems that have arisen and will arise, and he sought the opinions of members upon the advisability of the association s branching out with a much more ambitious program than formerly. Many of the members are m lavor ot this. Cj) CJ3 [t3 T the same time there is talk of an organiza- tion separate from ACMLTD, to be composed of the leading cigar manufacturers of the country. The idea is that the cigar manutac- turin- business is an industry in itself. If we wanted to look for a parallel, we might turn to the automo- tive industry. The manufacturers of finished motor vehicles have their own strong organization, entirely apart and separate from the associations of the man- ufacturers of component parts, acce^^^^'^^^N^^'-'rrwp of which groups has its own national association, mere do^. ^eem to be much force to the contention that the dgar'^men could present a stronger and more united front if they were thus organized, ^^.e can think of such an organization, for instance, taking up the cud- gels for alf its members and their industry generally fn such a case as the test of the constitutionality ot le processing tax, instead of lookingto Bayuk or some other individual company m the contingency. f AAA Suit Action Deferred Jobbers Submit Code to F. T. C. EDERAL Judge William H. Kirkpatrick, on Julv 24th, postponed further action on his de- cision nullifvinji- the AAA processing- taxes because of delay by Congress in passing upon amendments intended to overcome Haws in the law. Wliile he rendered "declaratory judgments" that the hog processiuii- taxes are invalid, Judge Kirkpat- rick (Ud not lirant the injunction which twenty-two meat packers, tobacco companies and other concerns asked for. Instead he allowed them temporary restraining orders, operative for ten days, on condition they would put up bonds protecting the Government for the taxes should C^ongress enact legislation legalizing the as- sessments. C'ounsel for seven of these companies applied for preliminary injunctions against the Collector of Inter- nal Revenue to restrain him from taking any steps to collect taxes now due, but Judge Kirki)atrick de- clined to hear the petitions since Congress has not yet acted on the j)roi)osed amendments. He continued the temporary restraining orders until Julv 31, at which time, he said, Congress nuiy have taken some action on a bill which would preclude the courts from issuing injunctions. In two new suits hied Judge Kirkpatrick granted temporary restraining orders under the sanie condi- tions. In the case of the Conestoga Cotton Mills, Inc., of Lancaster, which tiled suit to avoid i)ayment of $13,- 28:), he gave the company until July 31 to put up the bond. ,_ , . The York Roller Mills, of Manchester rownship, filed suit to restrain the Collector from collecting taxes of $(),732 for wheat processed in June, and it also won a tenii)orary order. Estimated 1935 Earnings ROFITS of the leading cigarette producers for the current year are not exiuH'ted to vary ma- teriallv from those of IIKU, since higher to- bacco costs are l)eing ofl'set by increased vol- umes. Reduced charges, brought about through re- financing of the Tobacco Products lease should mate- riallv aid Ameiican Tobacco in nuiking a better show- ing, and tentative estinuites of the four leading con- cerns are as follows: Xet Amev. Tob $26,6(HMHMi Ligg. & Myers 20,4tMMMH) Lorillard 2,93(MHM) Reynolds 24,(MMM)00 Earnings per sh. Com, •$5.00 •6.tK) 1.20 •2.40 Prrf. ;)4.(K) 30.00 •Combined wininon and class B. S. C. WILLIAMS ELECTED CHAIRBIAN T a meeting of the directors of R. J. Reynolds Tobacco Company, held in the company's offices in Winston-Saleiii today, Mr. S. Clay Williams was elected chairnuui of the board of directors succeedinir the late Mr. Bow7nan (Jray. Mr. Williams, formerly vice-chairman of the board, has been with the company since 1917, at which time he became associated with the law department. In 1921 he was made general counsel and in 1924 was elected a director and a vice-i)resident. In 1931 he became pres- ident of the company and in 1934 was made viw^hair- man ot the board. . The vacancy in the board of directors created by the death of Mr. Grav was filled through the election as a director of Mr. John C. Whitaker. Mr. Whitaker is a native of Winston-Salem, N. C., a graduate of the Universitv of North Carolina and has Iwen with the company since 1913 except for his period of service in the United States Navy during the war. Along with his other duties in the manufacturing dei)artment r»f the company, Mr. Whitaker has served as manager of the employment department from its creation in 1919. Considerable variation in 193,") net income of cigar l)roducers is j)robable. Major numufacturers of Class A cigars, such as Bayuk, should beneiit from the cur- rent increase in consumption of .j-cent brands, although prtilits nuiy vary widely over a short term in consid- eration of seasonal factors, changing consumer brand l)references and increased comi>etition from 2 for .) cent cigars. Producers of medium priced brands are current Iv experiencing renewed demand, as a conse- quence of retail price reductions following collapse of the XRA codes. Sustained takings of snuff during the initial five months of the current year at levels only moderately below those of 1934 and the jirospect that .second half yolumes may equal or slightly exceed previous year's levels forecast continued stability of results of Amer- ican Snuff, Ilelme and U. S. Tobacco, approximating those reported in VJ'S-k.—Standard Trades and Securi- ties. ACETYLENE TREATMENT OF TOBACCO- LATEST EXPERIMENT T is reported that the Agricultural Research Bureau of the Gennan Dye Trust is at present experimenting with the application of acety- lene gas treatment to tobacco for the purpose of producing the golden-yellow color which is preferred for cigarette and pipe tobacco. It has been found that tobacco leaves gathered ten days before becoming ripe, and so treated, turn yellow much earlier and stronger than those leaves not treated. Tests of aroma and taste showed that the untreated tobacco was judged by th« Examining Conunissioner to be **biting and empty'Mn taste, while the odor was "not quite elean." The opin- ion of taste and aroma of the treated tobacco was ** rather full, almost pleasant, clean, somewhat aro- matic.'* A short treatment showed a general increase in nicotine, while a longer trealmeut re>ulted in a de- cline. The large improvement in qnality, however, did not regialer a corresponding drop. Tkt Tt^aceo WorU N Friday, July 19th, the Wholesale Tobacco Distributing Industry, reputedly a $ir)(),(J()0,- 000 industry, submitted to the Federal Trade Commission in Washington the tirst complete and formal code to be symnsored by an industry since the collapse of the NRA. After experts of the commissicm had met with a committee representing the industrialists, the proposed trade practice rules, supported by ^ per cent, ot the industry, were submitted to the commission tor its con- sideration. With perhaps some modifications, they are slated to receive approval, thus paving the way for an approach to the self-regulation recommended by the United States Chamber of Commerce and other organ- izations representing private business. An outgrowth of the NRA and an entirely new de- parture in the contents of trade practice agreements proposed before the commission, one section ot the new- pact provides for maximum hours, minimum wages, col- lective bargaining and a ban on child labor. It does this by simply setting forth the trade's apinoval of the^ standards as they were incorporated in the dead NKA code for the industry. The NRA code, the labor provisions of which thus would be given a new lease of life, provided for a basic forty-hour week and eight-hour day with exceptions. Minimum wages are graded, according t«> populations of cities and townis, from $16 a week to $14, wi h a H differential for the South in towns under 2.j,e needed, ami many dealers found that they were enable to secure a sufficient quantity of stamps to take care of their requirements. Some dealers sold their cigarettes without the stamps and without any attempt to collect the tw, while other dealers sold their cigarettes without the stamps but demanded that the tax be paid by the consumer. How- ever, this difficulty has now been overcome and it i^ anticipated that there will l>e no further shortage of tax stamps. The new tax was anticipated to produce an annual revenue of $10,000,000, but cigarettes dm- tributors here estimate that this amount will be doubled when the actual reiarna are checked. A»g%*t i. 1935 With iiKpiiries or informal a])plicatioiis from 200 other industries already directed to the F<'deral Trade Commission, the wage and labor provisions of this ''model" pact are expected to be a necessary guide to formal i)roposals for revived codes which may come from other industries. Trade Rules Covered The agreement of the whoh'sale tobacco trade also shows the influence of the NRA in a detailed set of trade practice rules which follow along the lines of the indus- try's NRA code but exclude such merchandising pro- vi'sions as would clearly be beyond the approval of the Federal Trade Commission. The i)roposed rules for the industry are in two groups, the first group containing eighteen specified unfair practices which the industry claims are in viola- tion of the law as i.reviously decided by the commission nr rand. Ben ^ns that the sales agreement recently >l-n-^ored bv his company in an effort to maintain the estab- ^hed i^ai pHce of his brand, has beenen husiasti- "received by dealers and has resultad^m a mce ncrease in distribution and sale of his brand. I 1 1. Cuban Tobacco Trade, 5 Months of 1935 S rei)ortod by Viee-(^onsul W. X. AValmsloy, Jr., and made \nMk' by tho Tobacco Division, Do])artnU'iit of ('oiiiiiktco, exports of loaf ami inanufac-tiirod tobacco from Cuba to all coun- tries diirini? tbo first o months of 1!'.'^') decreased in volume and total value, as compared with exports in the like pericul <.f VXU. Kx])orts to the United States dnrintr the o months of l!*.'].') showed a sli.ulit improve- ment over the same ]>eriod of VXU. The value of exports of leaf and products to all countries durinu- the lirst o months of 1935 was $5,245,- 102, or 3.03 per cent, below those of the 1934 period. In both the 5-month i)eriods, the United States ac- counted for 56.1 per cent, of the foreijiu purchases of ('ul)an leaf and manufactures. Formerly, two-thirds or more (for example, ('.(16, 6)8.2, and 6(5.1 per cent., in 1925, 1926), and 1!>27, res])ectively) of Cuba's to- bacco shipments were to the United States, but in 1931 the percentaire fell to 59.2. in 1!»32, tlie worst year tlK> Cuban trade has ex])erienced, to 59.4, in 1933 to 59. <, and in 1934, to 52.S. Chanues in smoking habits are said to be accountable. Shipments of stenmied leaf and scrap in 1935 have maintained the ueiieral volume of tobacco trade with the United States. Leaf movements have totaled 2,400,808 ]>ountls, comjiared with 2,2()7,358 ])ounds in the period January-May 1934, and the value of all to- bacco exports, includinu manufactured ])roducts, was $2,941,077 in the first 5 months, and $3,033,440 in the lirst 5 months of l'»34. May i)urchases by the United States, valued at $505,352, exceeded May 1934 pur- chases by alxmt two-thirds, ])ut fell below those in the precedin.sr month approximately K^ per cent. January- Mav 1935 detail> follow: Cuban Exports of Leaf Tobacco and Tobacco Products to the United States January May 1934 1935 VnJinnr Volume Pound; Unsteninied Wrapper Filler Stenmied Scrap Total leaf Smoking Tobacco Cigars Number Cigarettes (« tt <« II i i 2(i6,2l8 205,742 1,494,159 1,197,2(53 2,2(54,955 2,567,398 973,285 1,322,418 4,998,617 5,2!>2,s21 207 315 645,931 1,022,098 5,204 14,214 With no improvement in exports to the United States, the unstemmed equivalent of tobacco ship- ments, as estimated informally, continues low. To the end of Ajiril the unstemmed e(iuivalent was estimated, on the basis determined 1)y the cigar adjustment pro- gram of the Agricultural Adjustment Administration, at 5,279,763 pounds, and by May 31, it had reached but 6,598,959 pounds. Details of the unofficial estimate are given in the table which follows : Unstemmed Equivalent of Cigar Tobacco Exports From Cuba to the United States Januarv-Mav, 1935 Unste in })i ed Eq u ir- alcnt {Pvmifls Local Units avoirdupois) Unstenuned Leaf Wrai)per Filler Stemmed Leaf Scrap Ciuars Total 93,324 kilos 543,075 kilos 1,164,5()4 kilos 599,845 kilos 1,022,0})8 units 205,764 1,197,263 3,414,639 1,758,816 22,477 (5,598,959 Cuban factories in 1934 manufactured for home consumi.tion ()0,973,4(M) cigars, 213,853,231 packages of cit»arettes containing 1(5 cigarettes each, or a total of ;>,421,(551,(59(5, and 188,971 pounds of smoking tobacco. In 1933, manufacture for home consumi»tion consisted of 51,826,123 cigars, 174,(5(53,321 packages, or 2,794,- 613,136 cigarettes, and 212,790 pounds of smoking to- bacco. The Cuban tobacco crop, owing to the drought, is about a month late this year. The fancy grades and the ordinary leaf of Vuelta Abajo are nevertheless in fairly good condition, but, at the middle (»f June, there had been i)ractically no movement to llabana from growing districts. Tobacco dealer^ are pleased with the considerable reduction in volume of the Kemedios (Santa Clara Province) crop, which was seriously af- fected by the tardiness of the rainy season. The de- crease in the high grade Pinar del Kio (Vuelta Abajo) outijut is due as much to the fall in demand as to the l)rolonged dry season. Discussion is taking place as to the advisability of converting more high-grade to- bacco land of that region to medium-grade jiroduction to meet current cigar tastes in the United States. Treaty negotiations are rejiorted in progress be- tween Cuban and (ierman reiuesentatives, and if cer- tain mechanical difficulties relating to German ex- change regulation are satisfactorily solved, improve- ment in tobacco exports to that country is expected. Uermany has never taken much more than about 1 I^r cent, in value of Cuba's tot^U tobacco exports, but it was nevertheless a market which up to about four years ago could absorb annually from jfi?(K),(KK) to .^500,- (KK) worth of local cigars and unstenuned leaf; in 1934, exports fell below $iuO,()(M). The success attending an eventual ccmvention will depend upon the policy which the I^remen tobacco import organization adopts in re- laticm to the disi>osition of exchange from German shipments to Cuba. Most exports from there to Cuba aie in small lots valued at between $50 and perhaps +500, so that an efficient means of clearing export docu- ments giving rights to exchange is necessary, if it is to benefit large scale tobacco operators. Late last year, a minimum wage of 80 cents per day, i)iece workers and certain other classes excepted, was fixed for tobacco workers in country districts. For the benefit of piece workers, the minimum scale was extended to such laborers in March by Law Number 22 (2), th« provisions of which need not, however, be applied to tobacco stemming establishments until Au- {Continued on page 12) MIA. f)HIbA!)Eli BAYUK BUSINESS BRIEFS ATKST addition to the list of Bayuk distrib- utors is A. F. Doscher Sons, of (Miarleston, S. C. . . . Among recent visitors to head- (puirters from distributing organizations were Louis Kaven, head of the company bearing his name at Canton, Ohio, and A. (\ Davis, of the Neudecker Tobacco (N>., Baltimore, Md. . . . Harry Hice ot N. Kice Cigar Ctmipany, Phillies distributors t^i*^ ;!*''- burgh, stopped at Bavuk's < ,>er the weekend. I hillies, as he savs, "are going over strong as ever and enjoy- i,,.. a fine demand." . . • The Lawrence Baldi t o., Laconia, X. II., are keeping Phillies in tW, J'"^'"; l»'^^'f and recentlv were assisted by C. F. Miller, Bayuk salesman, iii a successful promotional campaign on the i.rand. ... Amedeo Cniristopher, Madison, Maine, has been a«hled to the list of Bayuk Distributors, get- tin*" Phillies well placed in his territory. . . .Crook- Wallace (%)., Vincennes, Ind., with Paul K. P.owers, Bavuk salesman, are on a campaign f<»r greater clis- tribution, and making good progress in that distnct Charlie Wright, Bayuk salesman, says that i»hillies are going niightv strong in the Klizabelh, N. J., area, where they are distributed by M. Bergen ft Sons . . . The Chicago Branch of Bayuk 's, which ,»pened Julv 1, 1935, with John P. Sweeney as Man- ager, i^ making fine headway anr the demand in that section. ... A neatly designed box wrap now forms a part of the standard Bayuk Phillies package and is generally on display, adding further prestige and attractiveness \o the prominence of this brand. At Yahii & McDonnell heathiuarters, 617 Chestnut Street, thev report that their new smoking tobacco, Crosby S«iuare, is meeting with such a large demaml that tiiey have Iwen forced to increase their standing order of weekly shipments several times. The M. J. Dalt(»n Slaiul, under the able manage- ment of .John Flanigan, is displaying D. & M. Smok- ing mixture in their window space with excellent re- sults. The displav features the many types of to- bacco which are used to make this high-grade mix- ture, together with a map designating the districts from which the many different tyt^es of tobacco orig- BORNSTEIN OPTIMISM SOARS V IT IS a pleasure to you, as it is to most peo- ple, to listen to a man who is ))ul)l)ling over with enthusiasm about the business which is his liveliliood, von need go no further than the ..nic.. at Third and P>rowii Streets which is the sanc- tum of Sol Bornstein, assistant sales manager ot G. 11. P. . . . You couhl never by any stretcli ot the imagination conceive of this busy chamber as a "cry- inir n)om." . . . pleased with the distribution and sale of his brands in this territory. ■ Cigars Down Cigarettes Up in June 11 K followinu" coniparativi' data of lax-paid piodiu'ts, indu'atod by the numthly sales of stamps, iwo issuod by the Bureau. (Figures for .hiiie, 19;>r> are subjeet to revision untd published in tiie annual report) Ciurars (lariro) Class A No. (lass r. Xo. I lass (' No. Class I) No. mass K No. 19,i5 352,i:n,825 5,499,1)3: J 41,:U)9,090 3,(147,991 2S4,3()7 19.34 345,039,001 » 4,195,213 51,341,970 3,598,545 280,972 Total 402,272,246 404,455,760 Cijrars (>mall) ....No. 17,928,520 Cigarettes (larue) .No. 143,642 Cigaiettes (small) .No. 12,119,688,167 Rnutf, mfd Lbs. 2,462.808 Tobacco, mfd Lb^. 25,41(),402 19,420,853 198,471 12,045,0(52,823 2,829,(i55 26,589,861 Tax-paid products from Puerto Kico (not in- cluded in above statement) were as follows: — June — Products 1935 Cigars (large) ^ Class A No. 4,8(KM5() Class B No. 155,650 Class C No. 26,750 Class D No. Total Cigars (small) ....No. Cigarettes (large) .No. Cigarettes (small) .No. 4,982,550 500,000 2o,(MM) 280,000 1934 3,917,040 :]03,5(X) 05,950 1,000 4,2S7,490 100,(KK) 200,050 Tax-paid products from the Philippines (not in- cluded in above statoment) were as follows: — June — Products 1935 1934 Cigars (large) Class A No. 15,145,620 17,577,175 Class B No. 7,777 90,250 Class C No. 8,250 3,620 Class D No. 100 5(M) Class E No. 330 310 Total 15,162,077 17,071,855 Cigarettes (small) .No. 30,3(K) 290,400 Cigarettes (large) .No. 5,tHM) June Withdrawals of Cigars 1920 to 1933 June 1920 ....708,112,284 .June 1927 . ....576,527,570 1921 ....618,495,102 1928 . . . 575,91*5,733 1922 ....015,264,023 1929 . . . 556,746,375 1923 ....591,514,124 1930 ...519,5mM66 1924 ....502,731,556 1931 . ...517,513,659 1925 ....569,743,013 1932 . ...4(H»,4W,15ii 1920 .... 576,561,866 1933 . . . . 418,570,386 Internal Revenue Collections for June Source of rcrrnue 1935 ^^^^ ^„ dinars $1,007,425.10 $1,051,372.17 Cikrettes 36,360,241.28 36,137,581.90 j^iHitT 443,305.49 509,337.94 T o b a c c o, chewing and smoking 4,576,445.52 4,787,213.66 Cigarette papers and .,,,,- "^ tubes 83,044.64 91,112.0^ Miscellaneous, relating to tobacco 551.60 310.18 Agricultural Adjustment Taxes and Tobacco Sale Tax Total from Julji 1, Mouth of ' 1934 {fiscal Commoditff June. 1935 year 1935) Tobacco (tax elTeetive Oc- tober 1, 1933) Processing tax $2,^)^2.27 ^1^32,161,943.21 I m p o rt compensating taxes 18,482.11 236,479.52 Floor taxes 6,068.02 327,078.71 Total, toluicco Tobacco sale tax $2,344,812.40 $32,725,501.44 2,131,52 3,231,374.77 YOCUM BROS. BUY FLECK COMPANY An announcement of considerable interest to the trade was made bv Yocum Bros., of Heading, Pa., man- ufactureis of tlie*Y B and Spana-Cuba brands, which was to tlie etTeet tbat they bad taken over tbe business of tbe Fleek Cigar Company, numufacturers of sev- iral well-known five and ten-cent brands, as well as two for-five and three-for-ten brands. Most of the personnel of the Fleck Company will be retained by Yoeum Bros. The official announcement issued by Yocum Bros. reads as follows: "We are pleased to inform you that we have pur- chased and taken over all leaf tobacco, equipment, ■supplies, titles, trade-marks, and brands previously made bv Fleck Cigar Co., Inc., of this city. This com- panv, established in 1887, and its brands have enjoyed .111 enviable and long-lived history, so that, in .loining tlieir operations with ours, we believe mutual advan- taire should result to all concerned. ' ' D. J. Kleber, president and general manager, and H. K. .McCusker, sales representative, as well as vir- tuallv tbe entire Fleck personnel, will be associated withus in this merged effort to give their brands and ours wider coverage and distribution. **In adding to our line tbeir brands — Rose-o-Cuba, Tampello, Town Talk, Buffalo, Lady Astor, Wm. Bar- ton. Kahnellon and others — our volume on five-cent and ten cent straight merchandise is correspondingly in- creased, furnishing us a more decided entrance and position in the market of three-for-ten-wnt and two- for-five-cent cigars, and three-for-five-cent cigarillos. The transaction also affords us an advantageous entree into some very desirable Eastern markets, where we were heretofore not represented." Tk* Tobaeeo WofU August t, 1935- DILL'S BEST AND AND NOW ON Columbia Broadcasting System Coast-to-Coast • Monday Nights $•• youi local Mondoy •yening program li»ling> MODEL TOBACCOS U. S. Cigars Up 180 Millions in 12 Months — Dvcrcase Cigars : Class A— United States . Puerto Rieo . . . Philippine Is. . . Fiscal Yr. Endh June SO, 19c 4,(»42,893,2l)5 5f),5(4,.335 197,581,380 1 -Increase QuantUij 227,290,825 1,060,0.35 35,620,460 Total 4,296,!>78,92tJ 190,610,330 Class B— United States.. Puerto Rieo . . . Philippine Is. . . 66,079,7t;t) 2,(K)5,5tH) 498,727 27,334,181 775,600 190,236 Total Class C— United States . . Puerto Rico . . , Philippine Is. . Total .... 68,583,993 508,659,802 663,950 237,840 509,561,592 26,748,817 68,383,588 292,180 68,669,466 Class D— United States. Puerto Rieo . . Philippine Is. 38,656,218 1,500 3,527 5,094,216 IWO 827 Total .... 38,661,245 5,(»3,889 Class E— United States. Puerto Rico . . Philippine Is. 4,077,081 841,356 *'ii26i Total .... 4,079,166 842,557 Total All Classes : United States. Puerto Rico . . Philippine Is. . 4,660,366,072 59,175,285 198,323,55*» 180,305,846 2,128,315 35,424,296 Grand Total.. . 4,917,864,916 142,753,235 Little Ci,i2:ars: United States. Puerto Hieo . . Philip])iiie Is. . Total 91,651,667 — 39,039,173 2,840,001) -h 20,0tM) 16,8(M) -h 16,h00 194,508,467 39,002,37:5 ^United States.. 128,482,391,636 r n,931,296,7;)4 Puerto Hieo ... 3,903,570 - 44(),280 Philippine Is. . 1,588,740 — 38.)^ Total 128,487,883,946 +11,^30,464,964 Larsre Citrarettes: United States. . Puerto Rieo . . . Philii»pine Is. . Total SnufT: All U. S. (lbs.) Tobacco (nifd. Ibs.)- Uiiited States . . Philip]>inc Is. . Total 2,407,085 39(j,tJOO 2,808,985 36,175.901 302,045,628 16 302,045,644 86,127,703 459,0tK) MO 86,587,203 — 1,53.5,663 _ 5,150,245 _ 70 — 5,15t),315 BAYUK EA&NINGS Bayuk Cigars for the quarter to June 30 had net profit of $242,735 after charges and taxes, conipared with $.311,730 in the June quarter of 1934. For six months to June 30 net profit of $394,120 is shown versus protit of $426,491 in tlie first half of 1934. William Anderson, representing the Antonio y Cleopatra l>rand, and Herman Abrams, representing the Medalist factory, are both in Atlantic City pro- moting the sale of their respective brands with a great deal of success. The excessively warni weather of the past two weeks has driven many families to seek re- lief at the seashore, which ha« resulted in a nice in- crease at those points, with a eorrespomling .slowing up of business in this city and surrounding territory. Tk* T9bm€€0 WorU News From Congress _ -AND Federal Departments From our Washinoton Bureau eZZAuK Bwiome LANS of President Roosevelt to retain the ad- vantages of the labor provisions of the former codes, at least so far as (lovernment suppliers are concerned, by requiring contractors to con- form to wage and hour restrictions, were l)locked July Mill l)y a ruling of Comptroller (Jeneral Mc(\^rl holding -ueh rerovisions. Legislation providing for the observance of inini- iiium wage and maximum hour standards is pending in Congress but has not been considered and is not seen as likelv of enactment this session. As' a result of McCarl's decision it will be neces- sary for the Federal departments and agencies to re- vise any outstanding bids in which the labor-standard requirement was inserted. Ct3 Ct3 CJ3 ROVISIOX for a reduction in the processing tax on tobacco is made in the Agricultural Ad- justment Administration amendment bill as passed bv the Senate, under which the AAA may lower the rat'e whenever the fair exchange value ot tobacco is not less than 10 i»er cent, below parity. The amendment was proposed by Senator Barkley of Kentuckv, who explained that AAA officials had fig- ured the proposal out and determined that they can reduce the processing tax even where the price is wnthm 10 per cent, of parity and still have enough money to tarrv on oiM?rations. There was no opposition to the change, and bena- lur Fletcher of Florida submitted a telegram from A. L. Cuesta, Jr., president of the Florida (^igar Manu- facturers Association, declaring that unless relief was granted many manufacturers *'who have up to date eheerfullv co-operated with the administration s re- quirements" would be forced out of business. Mr. Cuesta declared that the amendment bill, as originailv presented to the Senate, would "prove ruin- ous to the cigar manufacturing industry" and asserted that farmers are now receiving parity for cigar leat August I, tgsS- tobaccos, surpluses have been absorbed and a definite shortage may be anticipated. "Processing tax as proposed in H. R. 8492, despite l»arity having been reached, is absolutely in negation to understandings made between this industry and the AAA at the beginning of the inqiosition of the process- ing tax," he wired the Senator. "The entire situation is obviously unfair and unsound. With fair chance for ])ublic hearing, which has been denied up to date, op- jmrtunity would have been given to present facts upon which intelligent decision could have been made." Ct3 Ct3 Cj3 ETERMIXED opposition to President Roose- velt 's ]>lan for sliding scale taxes on corporate income is expected to develop when Congress undertakes enactment of the new social-revenue leiri slat ion. While it is admitted that the new rates will aftord relief to those corporations with small income, it is pointed out that the large organizations will be taxed at high rates without regard to the rate of return at wliicii their income figures out. It is explained that under the President's formula a concern capitalized at $10(X) and having a net income of $2000 out of which it might pay a 200 per cent, divi- dend would be taxed at the lowest rate, while a corpo- ration cai.italized at $10,(K)0,000 and having a $2(30,000 not income, allowing at most only a 2 per cent, dividend, would take the highest rate. Industrial executives assert that the tax, consid- ered from this angle, is jmrely a levy upon size and will inevitably lead to the disintegration of the countr>^'s largest corporations. , . . t^ This, however, is exactly the idea at which Presi- dent Roosevelt aims, in the belief that small-unit indus- trv would be better for the country than practical con- trol by a few exceedingly large corporations which might,* under favorable conditions, become monopolies overnight, and the ]Motests of business against the new taxes wnll be combatted on that very ground. Cj3 Ct3 CjJ OVIXO to make effective provisions of the new recovery act permitting the adoption of vol- untary codes. President Roosevelt this month authorized the Federal Trade Commission to i.nter into negotiations with industry for fair trade agreements, with the NRA to serve as a fact-finding {Continued on page J 3) u n Cigar Tobacco Growers Vote ROWERS of c'i^ar fillor and ]>in(lor loluu'co will indicate by n'tVivndum this month whether they want the jtrodnetion adjustniejit program for' their erop eontinned after liK}.'), the Agri- eultnral Adjustment Aihninlstration announced today. Cigar iiller and ])inder producers in Wisconsin, :Minnes"ota, Ohio, Indiana, Pennsylvania. New York, and New Knuhind arc lu-ing snpi)lied with ballots bearing the pers, renters and landowners who are actually engaged in the i)roduc- tion of cigar tiller or binder type t()l)acco in the above areas are~ernii))le to vote in the referendum regardless of whether thev have signed adjustment contracts. Ballots which are >iuned may be returned to a county agent's oflice at any time before August 4, 1935.* Unsigned ballots will be accepted on August 3, the final votinu day, if dejiosited by the voter at the official pollinu i>lace designated by the county agent. As ballots are received in the county agent's office prior to August 4, they will be cheeked against the list of eligible voters. Any names not included on the vol- TOBACCO GRADING BILL APPROVED Compulsory Government grading of tobacco on markets, where two-thirds of the growers favor it, was approved late last Thursday by the House. Approval came on a voice vote. Opposition crumbled when proponents of the bill, by Flannigan (D., Va.) defeated by a 7U to 55 stand- ing vote, an amendment to eliminate the compulsory feature, even though Government grading was wanted bv two-thirds of the farmers. The measure now^ goes to the Senate. The grading service is designed to prevent spec- ulation in tobacco and unfair manipulation of i)rices. CUBAN TOBACCO TRADE {Continued from Page 6) gust 4, 1935. Tobacco ,fr>bber8, who pay strippers {despaUlladoras) 6 cents ft bunch (matul), which w'eighs 3 or 4 Spanish pounds (4.(K572 adv.), state that the average worker earns about 60 cents a rocessing taxes. After deduct- ing $3 Federal tax from the selling price, the tax ac- tuallv amounts to 15 cents on a sale jirice by the man- ufacturer of $2.38. Processing tax on cigars is approximately 90 cents per 1000. About $4,UU0,UUU were paid on last year's 4,597,(MM),OU0 cigars. SECRETARY WALLACE RESERVES COBIMENT Secretary of Agriculture Henry A. Wallace, whii« in Denver, Col., on July 16th, said he would reserve TOinment on the Federal Circuit Court of Appeals de- cision that ]mrts of the Agricultural Adjustment Act are unconstitutional until he reviews the text with a member of his legal statT. **Tho ruling is of no great consequence until it has been passed upon by the Supreme Court," he said. GENERAL CIGAR DIVIDEND General Cigar Company has declared a dividend quarterly $1, payable August 1, record July 16. News from Congress Mannie Perez was in town last week visiting dis- tributors and retailers of his brand. Th* Tobac€o WofU (Continued from Page 11) body paving particular attention to the development of provisions for minimum wages, maximum hours and the prohibition of chihl labor. Approximately eighty industries, including some of the largest in the country, are said by commission officials to'^have expressed interest in voluntary codes and to have asked information as to their development, hut no information is available as to the reaction of these industries when informed they would be required to complv with labor restrictions while being per- mitted oiily to ])rohibit practice's already contrary to The comi)romise wherebv both the trade commis- ^'um and the XHA would participate in the negotiation of the a^-reements was reached at a White House con- ferenc<'rbut with the bulk of the responsibility placed n]»on the commission the XHA is seen as ])laying only a minor role and ra])idly passing out of the picture. Xo machiiuMV exists whereby industries can be compelled to ado])t voluntary codes and any agreements made must originate with the industries interested. The onlv enforcement available under the law is in the applicat"ion of the trade commission, Clayton and simi- lar statutes. Cj3 Ct3 CjJ EGISLATIOX restoring Federal control over interstate business has been prepared by the American Federation of T.abor for introduc- tion in Congress at an early date. The bill would recpiire all manufacturers engaged ill interstati' or foreign commerce to secure licenses from a five-man Xational Industrial (Commission which would be created. The licenses would inohibit dishon- est or fraudulent trade practices and untair nietliods of comiietition, require com]»liance with all provisions of the Xational Labor Relations Act, and assure the erforniance of industry through an equitable distribution of prolita, through in- creases in wages and decreases in hours. . . ,, The purpose of the legislation, as set iorlh in the preamble to the bill, is -to i,rovide for the general wel- fare and to remove obstructions to the tree flow ol interstate and foreign commerce which tend to diminisli the amount thereof and *'to reduce and reheve unem- ployment and to promote the planned orgam7-atif>n or industry.*' Auput 1, 193$ ?ROFIT BY THE NEViT DEMAND FOR OLD GOLD A new heavy demand for Old Gold is sweeping the country. New dealers especially have sensed this trend. They are not only $tocking-up/ but playing-up Old Golds. The makers of "America's Smoothest Cigarette" are cooperating with a new line of timely win- dow cards and other helps that every Old Gold dealer should have on display. Ask your iobber to help you sell more Old Golds. p. LORILLARD CO., INC. Eitablifhtd 1760 lit WISr 40TN fTllir NIW YOm CITY TOBACCO TRADE OBGANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES <^^ JESSE A. BLOCK. Wketlmf. W. V.. viM-p'rllid'S ^di.^S^f^.'i^^itt. S:: ^ Jf: v^: ::::::::::-:::-:::"-:| lib H. H. SHELTON. W..h.ngton D C V ce-P«Side»t WILLIAM T. REED. Richmond V. V U-K«« d*"* HARVEY L. HIRST. Ph.Udelph;., P. Tl-e*«r«r ^^ Hc.dquaiter^. '>4\ Maditon Ave.. New "iork City RETAIL TOBACCO DEALERS OF AMERICA. INC JAMES C. THOMPSON, Chicago. lU ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUVS. New York City Fuii" ViM-PrMid«t illLTON RANCK. L*nc«.ter. Pa ^J«;« ^ ^..p,e,id«»t D. EMIL KLEIN. New >orkC,ty .„ S^reUry-TreMW« L£E SAMUELS. New \ork City accrc*. j NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN. 180 Grufninan Ave.. Newark. N. J Vice-Preaident ALBERT FREEMAN. New York N. Y .;: Second Vice- President IRVEN M. MUSS. Trenton. N. j ^'='' Secretary A. STERNBERG. Newark. N. J RETAIL CIGAR STORE ASSOCIATION OF PHI^DELPHIA^ laiSii maSd?^ NiMeWine st:.-^iude{phi.;pa::::::::::::::::s:c«^ THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS. INC. „ . . ... Presided 1. ASBURY DAVIS. Baltiinore. Md. - _• v„ . " Vl ' V' Secretary {?eI"I' Sfffi " &?v'.,i»";'o">:i: '^"''.■..'':..^.:.:.:.::::.. t,....~ UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATIOK '3 AUGUST 15, 1935 Bsnbllahed 1886 "B£5r OF THE BEST'' M^^.ct^6 b, ^ SANTAELLA & CO. Office, 1181 Broadway, New York City FACTORIES: Tampa and Ktp Wtat. Florida j OUS HIGH-GRADE NON-EVAPOEATING CIGAR FLAVORS^ __ „^^ ^^ .. .,.„^ and Impart ■ ino»« paUtabU flavor FLAVOES FOR SMOIfflG ud CHEWUiC TOBACCO FRIES A BRO.. 92 Reade Street. Ne^ York | POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large foUowinf. Address Box No. 580, "The Tobacco World." aCAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON Automatic Machines, wants a position. Also instructs beginners. Address Box No. 558, "The Tobacco World." CIGARS WANTED I AM ABOUT TO OPEN A DISTRIBUTING BUSINESS Specializing in cigars to cater to resUuranU and cale tr»«te. Would like to specialize in 5 and 10 cent cigar. ond« my own braiid. Manufacturers communicate with me in reference to worth-while Itati Hugh Dcmowkk, 242 MiUior Ave., Lackawanna, N. Y. CIGAR FACTORY FOR SALE OHIO CIGAR FACTORY EST. I860. FIRM RETIRING. Brands are aU modern, well advertised in local market and produc- tion now about ten thousand per day— capacity forty thousand. W« have discounted all our bills to date and we are willing to sell at a very reasonable price. Address Box No. 581— The Tobacco World. Tobacco Merchants' Association T-fc • . ^' D ^«,, 341 Madison Ave. Registration bureau, new york city Schedule of Rates for Trade-Mark Services Effective April 1, 1916. HAVANA CIGARS BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT LOVE— Adi^t as your slogan, •*Kisi your beer, but tove yoar d- MTi" Sp^WJy thote Havana blended, "Good to the last Pitf, MUtrfacttsred by A. Ramirez & Co.. Poat Office Box n6«, Taa^a. pli. Write then for partkulan today. Registration, Search, Transfer, Duplicate Certificate, (see Note A), (see Note B), $5.00 1.00 2.00 2.00 Not* A-An .llowaac of |3 will bo mado to ■ombor. ol tho Toboeeo Urn- thai^lS 0S?tiUnrKt ui tSTtwonty-on. (21). .. odditlonol c»«n|« •« ^ DoS»r 5l 00) will be made. If it neeootiutot th* reporting of more th»n twoatj JStitU.rbu7leMth.li thirtr-o-e («).•«•«***«?■*» '*V^./*J«^ 2?11^ (£o«J will b* mode and eo aa .dditionol eh*r«o of On* DolUr (tlOO) will bo mode for OTory ten (10) odditlonol titlei neceeMrilr reported. TRANSFERS NONE U. S. CIVIL SERVICE EXAMINATIONS HE United States Civil Service Commission lias announced open competitive examinations as follows: Plant Pathologists and Agronomists Applications for the following-named positions in the Bureau of Plant Industry, Department of Agri- culture, must be on file with the United States Civil Service Commission, Washington, D. C, not later than August 12, 1935: Pathologist (rice investigations), associate pathologist (cereal smuts), assistant agron- omist (forage crops and diseases), assistant agrono- mist (sugar plant investigations), and assistant genet- icist (tobacco investigations). ^n^^A x aoqah The entrance salaries range from $2600 to $38uu a year, less a deduction of 31/2 per cent, toward a re- tirement annuity. , -.i. i. u Applicants must have been graduated with a bacli- elor's degree from a college or university of recog- nized standing upon the completion of at least 118 semester hours, with certain appropriate major work. In addition, certain specified experience is required. Full information may be obtained from the Sec- retarv of the United States Civil Service Board of Examiners at the post office or custom house in any city which has a post office of the first or the second class, or from the United States Civil Servic'e Com- mission, Washington, D. C. Send Two Dollars, with the ccmpon betow to Tl^ Tc^cco World, 236 Chemiut St., Phibu, Pa^ and get your copy twice a mouth (or a year. Name. Street No^ P.O- JScate- VOLUME 55 ^*^ , W^^ No. 16 iiiiiiiiiiniimiiiiiiii IMMi COMMON SENSE The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and invitmg package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. ), 11 Phi la., Pa. Hanover, Pa. Cincinnati, Ohio York Pa AUTOKRAFT BOX CORPORATION ch,cag'o, iii. LIMA OHIO Detroit, Mich. A NatioivWidc Service Wheeling. W. Va. iiiiiiiiiiimiHiiiiim iiiiiiiiiiiiiiiiiiiii PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST. pHILA.. PA. THEY DON'T GET JAMES BAUSCH, Oh inpic Dctatli'mi ( lunipioii, IN c.illc! "\\ orlii s mi-ttist all -arnuiul athUtt ' ' I \' sa\s; I \t smukcd CaiiK-ls l.u \.ai.. ( aiiK-ls ar< so JTiiKl tluv iliint uu my w iiul. 1 lu \ musl be inadi. In.i.i i.-rlitr ttihaLiDs! ' ATHLETES SAY \ w RIP COLLINS, h H la: *^t. JENNIE ROONEY, famous cir^u"; annal- ist ■>. ^- ■ 1 iia\f t.) sii.arJ :.,\ ^'. :su'. It BRUCE BARNES, the Ri tc arc ^. uU--* tiio.Tht \\a\N nth ai •/ YOUU UICE THEIP MILDNESS TOO! WEIGH THE WORDS < f Uic WILLIE MACrAR- LANi, tornitr I . >^ (>; I n rhai'ipM'fi. O lllllil J. A. BROOKS, ^: ^ ; \'! ^mt r i^.m i.1 iiijitttr h ' inv M 1 smoke. < ^1 nc^crupsctm) 115.1 ^vN k^V , ,r ,■, f niv wind. That's IT ^K R _^^ ^ PV.i ifi .it < a'lii. , 1 iltiii I .iir thtir nerves. SO MILD YOU CAN SMOKE ALL YOU want! -^H€U amel COSTLIER TOBACCOS! , 1' I ^" ,.r. made fr^.m tmcr. MORt I XPENhlVr TOBACCOS j, ,. . n- ; issii— fhan am t.chir niipular br.itui THE TOBACCO WORLD Vol 55 AUGUST 15, 1935 No. 16 N 8P1TE of the way hifi; figures have been tossed a round in I'eeent years, we still must admit that a billion of anything, whether it's dollars or doughnuts, is still beyond our con- ception. A million! That's different. A million is eommonplace. We got used to the thought of millions in profits in the period culminating in 1929, and since then we have attained to a perhaps undesirable unfa- miliarity with millions in debts, although it is refresh- ing to note the present gradual revival of millions in ]>rofits, too. At any rate, when we learned the other day that a consumption of more than 130 billion ciga- rettes is forecasted for this year, on the strength of the figures to date, we were left colder than we were by the simultaneous news of two other happenings involving mere millions, instead of billions. CS3 CJ3 Cj3 UVj first of these was to the effect that 16,640,022 stamps were sold during the first month's operation of the Connecticut cigarette tax, bringing $338,176 into the State treasury. From the standpoint of geographical limits and popu- lation, Connecticut is not one of the big States, so we got a clear idea of the hold cigarette smoking has on the American people just from that one statistic. And our vision of the cigarette as one of the public's necessi- ties w^as still further clarified by the later news that, during the first half-month of the existence of a similar tax in Pennsvlvania, the State department of revenue sold 56,000,000 stamps, to the tune of $l,120,0tKX That's some tax revenue from a 15-cent item, C!3 Ct3 Ct3 PEAKING ^ taxes, we tobacco people have more than a casual interest in the propos^ coinage of American ha'pennies and mills as a result of the avalanche of retail sales taxes. Not that we need to get hot and bothered al)out the pm- wbility of this fractional money in the sales of tobacco products directly. When they tax tobacco products, thpv don't mess around with fractions of pennies. They tax 'em, what we mean. But the trade, retailers espe- y the Na- tional WnuWuiX Macliiiu' Co., <>f 2401 C'liostmit Stiwt, Philadeli.hia. Sonu' of tlu'iii are llo^y Di-ieed at sciisatioiially l.»w tii-ines, says .1. W Laiuli, Lnoral saU's maiiauor. The list iiu'ludes ei-aretto ma- "hiiu's, Pontiae, Wmld's Seiii's, Stieamhiie, Lark, pool t,,bh., hall roll-H, weiuht s,-aU's, stamp machim's Ihe Old Mill, eloctiie enme, novelty mereliantnmn i* leet, peanut vendor, iron elaw, antomatie phonograph, tour- some, step-up, etc. SOUTHERN TOBACCO MARKETS OPEN Hi i-ht leaf tohaeeo auetion> he-an on Ausiust 1st in fifteen eities in S(mth (Jeoruia, with (q.enni.o: prices reported hy warehoux-s at fr<»m (J U> •".:'. ^'^'nl^ '^ l«»i"^^l ami hetter. . , ,v • , i Under the crush of lieavy tirst-day otlerings and spiriteemen predicted the first dav averaue w«»uld be around 2U cents a pound For the"l934 season the average tor the state was l^.t-i Heavy receipts were announced from all cities making early rei)orts on >ales. NEW TEN-CENT CIGARETTE FOR FARBIERS The Farmers' To-oiicrative Marketing Association, Danville, Va., ha> recently hiunched itself into the pro- duction of a new ten-cent cigarette known ttti the "Dan River " Last fall the association entered the manufactur- ing field In- producing a fifteen-cent brand known as "Prosperitv." Haw materials are furnished by mem- bers of the Co-operative A>M)ciation and used m the manufacture of the cigarettes. , ,• , The cheaper cigarette seems to be doing relatively better tlian the fifteen-cent brand, production of which has been temporarilv held up pending installation ot machinerv to wrap tiie package in a cellulose covering. Members of the Co-operative Association seem to be manifesting a proprietary interest in the brand, with gratifying results. UNION CIGAR PLANS DISSOLUTION Notice is being sent to stockholders of the Union Tolmcco Co. of the formation of a stockholders' com- mittee to seek proxies for approval of jdan of dissolu- tion of the company. tin Under the proposed plan common stocKhoiaers would receive I2V2 cents for each share held, and class "A" stockliolders 25 cents a share, the remaining assets to be distributed among preferred stockholders. John Wagner & Sons reiiort business very good on their Don Sebastian, Wagner, and Monticcllo brands, with distribution and sales increasing steadily. The Rovalist factory. North Second Street, con- tinues to operate at a steady pace in order to satisfy the steadilv increasing demand for their brand. NEW ENGLISH OVAL PACKING XKW i)acking of Knglish Ovals has recently been iutroilnced by Philip Morris c^c Co., Ltd., ^ and is being enthusiastically received by friends of this famous brand. The new packinu' contains ten cigarettes retailing at twelve cents, plus State taxes in Slates having sneh taxes The ivorv-tipped has long been a favorite with •i lar*^e percentaue of consumers (»f high-grade ciga- rettes and the introduction of this new package may well be expected to stimulate sales of this brand coiisid- orablv. Distribution of the new package is being mmle throughout the country as .piickly as possible. CONGRESS CIGAR EARNINGS INCREASE Features of Jobbers New Code (Vuigress Cigar C;•]'> S'>4 in precetlinir «piarter and lift protit ot 5M-,n.), orTiiree cents a share on :52!>,4(M) shares in .lune 4uarter of 1934. LORILLARD SALES MANAGER PASSES The maiiv friends of William d. Hcniey, division sales manager U>v the V. Lorillanl Co., ^v^'im. saddened bv the news of his death in Bnston, on duly 2(.th, wl.eie h*e had been transferred from Philadelphia territ.>ry about twenty-three years ag(». Funeral servic-s were luld on July 29th from his home in Newton, a Boston suburb, f;>n«>w^'»V>y »-^"lim;m mass at the Church of Our Lady. The body was then brought to l»hiladelphia for interment. Mr. Honev is surviveer cent. ($1.25 a share) has been declared upon the common stock and common .tock n of the American Tobacco Company, payable in cash Se|)tember 'M, to stocklnilders of record at the close of business August lUth. QERBIANS PRODUCE SYNTHETIC TOBACCO \ vvnthetic tobaceo has lx»en produced in Uer- manv; it' coiwittts <.f si.ecially prepared paper iniprog- iiale'd with nicotine, and chemically stained and per- fumed, to give color and aroma. Marvel cigarettes, a product of tin* well-know'n house of Steiihaiio Bros., continue to hold a sales posi- tion well up with the leaders in this territorv. This ten-cent cigarette is also making steady gains in other sections of the country where it has hmn introduce*!. Alterations are l>eing made in the store at Second and Chestnut Streets, recently vacated by the Unitecl Cigar Htores Co. and a Unity Cigar Store will ojjen there with a soda and lunch counter as soon a> altera- tions are completed. Th* Tobacco World WVl IMiOPOSKI) Coir)(),0(MMMM), controls an annual sales volume of aiMiroximately ii;l,(HMMHMM««> and employs about (in,(HH) workers. . . . i ♦• „„ ({roup 1, consisting of the untair trade practices is divided into eighteen secticms. F(dloNying are the inerchandise methods which the association seeks to eliminate from the codeless trade: Use of 'Moss leaders." This rule declares that the practice of using nationally advertised ami well km»wn ),ranale distributcir of the same pro.luct, ... is an unlaii tra ot to- bacco protf the pa<'t. Sales beh.w cost, with the intent . ex,.lained). ^.«' ;'^ I imtionallv advertised products, prices ot which a.e ovneral public knowlcilge, at reduceve purchasers or prospective purchasers," is an unta.r trade piac- ^'^^'Tmitfttion of trad.. marks, trade nanH.s, slogans or other marks of identilication of 7"'1""'«\:»';^.; .. ^,^ Misbranding of any tobacco ,,roducts, o pack i^r >uch products in a manner intended to mislead pio- RECORD CIGARETTE PRODUCTION FOR 1935 I(J\HKTTK manufacturers of the Tnited siate. should produce in VX\:^ f«n domestic consumption about i:n,5.MMMMMHHI cigaret es, if the record of the imlustry over the past^ ten voars is anv criterion as to how the seond Imll oi IMo will comp^nc with the iirst. Such outjuit, it reahzoj would top anything in the history of the ...dust ry, and would be tho first time that 0 billion. In 1934, the present peak out,nit wa^ set at l25,fill,«HH,759. Which was an incriaM^ ot l-^-' inn cenl. over the \m^ total. August IS, 1935 spective purchasers as to the real quality of the i)rod- uct. , , . Dcfamalion of competitors, ''by falsely imputing to them disiionorable ccmduct, inability to perform contracts, (piestionable credit standing or by other false representations, or the false disparagement ot the grade or quality of their goods." Secret rebates, refunds, commissions, credits, un- earned discounts, or excess allowances. (livinu' of i)remiums to employees, as an induce- ment to them to persuade their employers to purchase industrv jjroducts. Wi'lful attempts to induce a breach m existing contracts between competitors and their customers "by anv means or device what -never." * Circulation of tlireat> of suit for intringement ot patents or trade-marks among customers of a com- petitor for the purpose of obtaining such custpmers. Publishinu- and circulating false and misleading price lists for the purpose of misleading prospective l)uvers. , p * (^)ercin"'- the purclia>e of several or a group ot products as a comlition to the purchase of one or more pnnlucts uiuler the exclusive control of the seller, -where the eiTect mav !..■ to substantially lessen com- petition or tenart or portion ^fUi; discount i-eceived from the State by such whok.- --ale tobacco distributors on the purchase ot such -tamps. . ^ ' \ r.? This latter group, it is pointed out, is also ot necessitv on a voluntary basis. ^ ,. ^ • The associati*m, f(dlowing submission of the tair trade practice rules to the eommission urged promiil- 1'aU.ui^of the provisions at the earliest possibW date. ^ Menil»ers of the boa.d of directors o the Na- tiotud A^ociation of Tobacco Distributors attended the eonference. BETTER BUSINESS CONDITIONS REFLECTED IN BAYUKS SALES I NKWM \N vice 111 I'sideiit 11ml gi''iw"l sales miiiml;.! (.f I'.avuk rivals, 1m., vvlm roeently , n,;..! from : fil- .-.v-vinff .litT.rent sect.ons ;;,■;",'. .om.tvy. n.poHs that Uu.n. ,s an un.iues- ngricultural sections the increase ssas as ^itai i portion as in the larger cities. t! MIA. pHIbADEli BAYUK BRIEFS KO TKIIIK. l^ayuk territorial iiiaiiajifer for Northwest crii IN'niisylvaiiia, dro])i)ed in at headquarters the other (hiy en route to Atlan- tic t'itv to si)end a tew days vacation . . . A. C. Rov, territorial niaiia,y:er in New Hnirland, was a recent visitor in the interest of additional shipnients for fall busine» ... At Ceiitralia, 111., Hayuk Phil- lies are beinir distributed l)y the Southern Illinois Cii^ar Co. who are dailv increasing: distribution and phTcenients on the brand*. . . W T. Morris, Bayuk ter- ritorial nianai^^er, writes that Phillies are well placed and on display in the Cincinnati district, where distri- bution is handled bv the Keilson Ciirar Co. . . . The }>opularitv of Havuk Phillies is well evidenced m Washingt'on, I). C*., where the brand is in iirominent position in dealers' estal)lishnients tlirouirh the activ- itv of the Washini^^lon Tobacco Company, the accred- it'ed distributor .\ . The Happ &: Klein Cigar Co., Lafavette, Ind., distributor of Bayuk Phillies, closed a successful s])ecial drive for more i)lacements with the aid of Paul K. Bowers, I5ayuk salesman ... 11. Ferb- slein, Inc., Akron, Ohio, are forging ahead in the sale of Bavuk Phillies and in a recent campaign, assisted by C. P. Ecclestone, Bayuk salesman, many additional outlets were secured . ." . (Jalesburg Cigar Co., Gales- burg, 111., assisted by Paul K. Bowers, Bayuk sales- man, are futher spreading the distribution of Bayuk Phillies throughout their territo^. The M. J. Dalton stand at 017 tliestnut Street ia featuring a window display of Crosby Square, the new high-grade smoking tobacco recently introduced here bv Yahn & McDonnell. This brand is making wonder- ful strides in popularity with pipe smokers here. Since the advent oi the State sales tax on cigar- ettes in Pennsylvania, sales of roll-your-own cigarette tobaccos have' shown a decided increase. The con- census of o]»inion, however, seems to be that it is too early to predict the ultimate outcome on the tailor- made varietv of cigarette sales, since thrifty smokers laid in a goodly supply of smokes l)efore the advent of the tax, and their supplies will probably not be ex- hausted for some little time to come. G. H. P. JOTTINGS RANK P. WILL, executive vice-president of the (i. II. P. Co., has returned to his desk at the Third and Brown Streets head«piarters, looking all the betti'r for his short vacation in New llami)shire and Maine ... Sol Bornstein, as- sistant sales manager, has left for a business trip which covers Pittsburgh, Chicago, Milwaukee and points in the Middle West ... I. (Joldberg, general manager of the Snyder Stores (d' ^t. Paul and Minne- apolis, was a recent visitor. He was accompanied by the Missus . . . Sales of El Producto and La Azora are showing a nice increase, which is evidenced by the stepping-up of activity in the numufacturing and ship- ping departments of the (J. II. P. factory. Abe Caro, Optimo represeTitative, was in town last week visiting Yahn k McDonnell, local distributors of the brand. William Freeman, of the Medal of Honor (^igar Co., was in town last week visiting the local distril)utor of ids brand, John Wagner & Sons. George Stocking, of Araiigo y Arango, Tampa, Fla., manufacturers of clear Havana cigars, was m town this week visiting retailers and distributors of his brand. J. Bielv, member cd" the office force of Yahn & Mc- Donnell, has just returned from a vacation trip si>ent in the South.' John looks as though he would last at least another vear behind the desk now. Herman Abrams, Medalist representative for Philadelphia and surrounding territory, has returned to Philadelphia after siHjnding a week in Atlantic City promoting the distribution and sales of his brand. Among other visitors in town hiRt week were Bar- ton Lemlein, of M. Sacks & Co., John L. McOuerty, of the Komeo v Julieta factory and Preferred Havana To- bacco Co.; and Sam Adler, of \'iIlazon & Co. All re- ported business on their respective brands showing an encouraging increase. Tk* Tobacco World © i9», UccETT & Mybis To»acco Ca August 15, mS N E ws From Congrbs ^ 'AND Federal Departments Fdom our Washington BtMCAu CQAlbce BmiOMC m E8KAKC1I by scientists of the Department of Aurieulture into the origin of "wiUllire,'* a seiious tobacco disease which appears in Mary- hind and Pennsylvania immediately after se- vere rainstorms in late July or August, has shown that it is due to the de^•elopment on the leaves of water- soaked areas which make easy tiie entrance of the bac- teria that cause the disease. It was found that the under side of the leaves was much more susceptible to water soaking than the to]) surface, explaining why the disease spreads much faster when storms are acc<>mi)anieil by winds. Other factors in the spread of "wildtire" are unbalanced nu- trition and exposure to storm injury. Ct3 Ct3 C53 ETAIL tnl)acco sale> in 27') cities throughout the country are to be studied by the United States Census Bureau if President Koosevelt approves an allocation of $2:»:3,(H)0 recom- mended July 23d by the Advisory Committee on Allot- ments for the Works Program. The plans of the bureau call for an enumeration of all retail places of business, numbering ajjproxi- matelv 280,000, in selected areas comi>rising 17 large cities *and 258 small cities of from 2500 to 10,o(>0 popu- lation. The investigation is ])ropo8ed as a supplement to current information on chain stores and large inde- pendent organizations in order to determine more accu- rately the trend of business. It is intended as an ex- periment, but, if successful, would provide an econom- ical way of rounding out current information on retail distribution between the periods of the proiwsed quin- quennial retail distribution census. Cj3 Ct3 ?T3 THIRTY-HOUR week for all industry and a system of licensing all persons engaged di- rectly or indirectly in interstate commerce is provided for in legislation favorably reported to the House of Representatives last month by its Labor Committee. The bill, sponsored by Representative Connery of Massachusetts, chairman of the committee, is substan- tially the same as one which was reiwrted two years ago but abandoned because of the enactment of the Industrial Recover^' Act. The measure is declared by its proponents to be absolutely air-tight as regards constitutionality and to contain all of the benelicial i)rovisions of the Industrial iu'covery Act with none of the weaknesses which de- veloped in the administration of the codes. The bill provides for the creation of a Federal licensing commission consisting of the Secretary of Labor and two members to be appointed by the Presi- dent, one a representative employer of labor wiio is a mend)er of a national trade association and the other a representative of labor who is a member of a national trade union. Provision is made for the licensing of all persons eng!igod directly or indirectly in interstate commerce. In order to secure a license such persons, as a condition precedent to its granting, must agree that they will not ship, transport or receive in interstate commerce goods, articles or commodities in the actual pro(luction of which any person was employed more than live days a week or six hours a day. The commission, however, could authorize longer working hours to care for periods of j)eak production. Xo license would be issued unless the licensee agreed that he would not employ child lal)or, would pay labor just and reasonable weekly wages, would not l>e a ])arty to "yellow dog" contracts, and would bar- gain collectively with his employees. The commission would be authorized to make such findings as to mini- mum weekly wages as would enable workers to main- tain decent standards of living and such findings would be linal and conclusive on all holders of and applicants for licenses, tjj CjJ Cj3 X INTENSIVE investigation of the tobacco in- fk^ dustry is about to be undertaken by the review ^31 division of the National Recovery Administra- tion, inaugurating a study of some twenty basic industries which the NRA has planned as the basis for statistical information which it will gather during the next nine months. The tobacco industry was among the first dozen trades named by the administration for study. The investigation will be conducted under the direction of If. H. TltBWorth of the NRA staff. The proposed inquiry will develop the definite limits of the industry, recreate its history, bring out the development of new processes, and provide infor- mation as to obsolescence of machinery, distribution and marketing conditions, etc. Although officials of the NRA have not so ex- pressed themselves, it is generally believed the infor- Tke Teboe€0 WoHd BAYUK BULLETIN first Issued 1929 AUGUST 15, 1933 Published twice a month PHULOFAX (T/ie Retailer's Friend) SAYS Don't forget, Mr. Salesman, while on your vacation to drop a postal card to your key customers. The dealer said — "Gripes, I got to get away tomorrow night from seven to ttri and don't like to close my store." The -alesman said — "O.K. go away tomo row night and I'U tend your itore from seven to ten— and my serv- ices are gratis." That's Service! Speaking about service- as a re- tailer, to prosper, must give Service to tie consumer, his customer, SO must the salesman give Service to the retailer, hia customer. The art of diplomacy does not nec- ttsarily force anyone's tongue to say Yes when his mind means No. Working in the Boss's business as you'd work if YOU owned the busi- ness will get you the business just that much sooner. He wrote a fine letter of sugges- tions to his firm . . . good ideas well expressed in neat typewritten form— and then forgot to sign hia name to the letter! — o — This from a jobber in one of the New England SUtes — "Dear Phil. Please write in your column to job- len' salesmen to always write down the correct name and address of dealer ... we had four shipmenU co^^^V^^ yesterday 'cause they were ^'^'^^r ted due to the salesmen's carelessness -please w as you would have him fight you and may the best man win ! THEY ALWAYS COME BACK A Modern Ae8op*» Fable Once upon a time old Father Aesop chanced upon an itinerant purveyor to the hoi polloi — or in other words, a street fakir. This fakir was engaged in promoting Dr. Doodlewit's Magic Hair Restorer, which he alleged would grow hair on a billiard ball over night, and turn a door knob into a platinum blonde. , , , ... Father Aesop felt furtively of his own polished dome. "Is it really good?" he inquired. , "Good?" replied the fakir. "Good? Why I never sell a bottle without the customer coming back again." "There's no better sign of good merchandise," said Father Aesop, and paid his two bits for a bottle. The next morning, bright and early, Father Aesop was back. "Miserable catiff!" he cried. "What m Hellas (Hellas is the ancient name for Greece) is this stuff you sold me? It not only has failed to grow any new hair on my head but it has burnt off what little I had." "Sir," said the fakir with great dignity, "I told you my customers always come back — but they seldom find me. I think I'll be going." And he thereupon departed in haste and a cloud of dust. Father Aesop rubbed his scorcnwl dome reflective^. "Truly," he said, "When a cus- tomer returns, it's a sign of good mer- chandise provided — always provided —he returns to get more of the goods rather than to get the man who sold them." , ^ . Thus, wise old Father Aesop made an epigram which is full of sound good sense to this day. The sensible retailer or jobber sticks to those brands which bring the customers back— swtZinfir. No matter how long the profit, he refuses to sell any items which do not give full value for the money. He knows that the burnt cus- tomer saeks the shop across the street. "Will you accept order for three mil- jion Cigars stop Wire answer. Would I? Boyoboy, three million was a nice size order in any language but I wanted to play safe . . . maybe citrar prices were going up . . . niaybe this or maybe that, so I called up home ofllce and wanted to know if it would be allright to take order from Soandso for three million suchandsuch a ciW. Sure it was okay and 1 wired jobber something like this: "Your telegram received stop Shall be glad to accept order for three million Cigar8,_ imr. A Johber^B lAttle Johm I Before you accuse me of too serions sermonizing, let me tell you of the jobber who simply loved to play jokes ... I got to know him very well and ixith of us liked each other a gr^t deal. , -_ I got home one Saterday mm a hard four weeks' trip . . . hadn't made •ales up to my expectations and wasnj feeling any too hilarious which didnt help put one in the proper attitnde to welcome any kidding . . . m came a telegram from this jobber. It read: ContinmdmntsBt column and his wire came back reading: 1 thought you would." I guess thats what you'd call losing an order you never had ! , ^ j i • j Yes, there was good-natured kid- ding in the old days and thats as it should be ... no occasion to make every business contact a matter of life and death ... I always felt that the first thing to ascertain from a pros- pective account was whether or not he wanted to do business with jre . . . of course, first I had to sell him the idea that he SHOULD .WANT JO and then when he acquiesced there existed no valid reason to talk to each other with loud voices and long faces! He wa* ■ iNMmg mImmh- It *^"P to him to tMke a ^mImor ^t tneant d,a Mving or low ol #'0.0<>f. !» f" Hou*e. And .o he but that .the .,ory the OW Ttmm ulU in hit !»«* in^ullmeat. CALL OFF THE FIGHT So the tivo Kilkenvy eata fought and scratched arid kicked and bit until they'd eaten each other completely up, all except for their two tails lying there on the ground. And that wom the end of the two moat foolish cairn that ever lived. When Retailer A cuts the price on his cigars, Retailer B feels constrained to do likewise. Then Retailer A's onljr way to keep whatever temporary ad- vantage he may have gained is to cut his price still further. Meantime both these gentlemen are merrily chuck- ing perfectly good profits out of the win(K)w. Manufacturers and jobbers may sell on a strictly one-price basis to every retailer, large or small — they may talk price maintenance until they re red, white and blue in the face— yet it is the retailers who fix retail prices. So why don't they fix them and let them stay fixed? Why can't they get together, and agree to sell five cent cigars for five cents and ten cent cigars for ten cents? What they get out of a Kilkenny Cat fight is simply beyond us. The first group of retailers that does come together on a price main- tenance policy gets three rousing cheers and a three-column headline from the Bayuk Bulletin. BUILD BUSINESS B4YUK BRANDS Bayuk Philliefl (BAYVK PHILAOELPtnA PaUTKTO) Havana Ribbon Mapacuba Charles Thomson Prince Hamlet mat ion jratliered mav be used as the basis for new in- dustrial control legislation next session if it is sliown that there has V)een a retrogression in industry since the invalidatiun of the codes. CJ3 Ct3 Cj3 Kinsl.ATlOX providing for F.'deral ins])ection aiul grading of tobacco ))efore sale l)y auction on \vaivli.' floors, i.ntro«luced by Heinvsenta- tivc Flannauan «)f Virginia, was passed by the Hcnisc «)t Representatives July 2.") wilJH.ut a record vote and is iu»w pending in the Senate for concurrent ap- proval The bill provides for the investigation of tobacco marketinu- and the establishment of standards for to- Vmcco and authorizes the demonstratKUi ot tobacco standards by distributit.n t>f samples and «.therwise. Aulhoritv is given the Secretary of Agi''n;"l^i""^' to desi*niate auction markets \\\nm the basis of the pro- duci'^rs' volt's an of the bill provides f(.r the sampling, inspection and weighing of tobacco, ui)on n-qiiest of the owner or other linancially interested person, in eo- o])eration with State or other agencies. Appeal inspec- tions are to be permitted and all inspection certiticates shall be received in all courts as prima facie evidence of the truth of the statements therein contained. Section 8 recpiires auction warehousemen to i)ro- vide a space on tickets or other tags or labels for state- ment of grade, in such form as the Secretary may pre- scribe, and Section 9 authorizes the estal)lishment ot a tobacco news service. It is ]irovided, by an amendment offered by Repre- sentative Warren of North Carolina anought and sold at auction only wlien two-thirds of the growers who sold tobacco at that market during the previous year vote in favor of it. The bill originally provided for only a majority vote. WILLIAM S. HALLER PASSES William S. Haller, well-known former cigar box manufacturer, passed away suddenly at Ocean t'ity, N. J., on July 29th, following a short illness. Mr. Haller was for many years proi>rietor of the Victor>^ Cigar Box Company, located at Ninth Street and Germantown Avenue, this city, but several years ago the business was consolidated with another con- cern and Mr. Haller retired from active business. Funeral services were held on Friday, August 2d, at the David H. Bowen & Son funeral parlors, at Fif- tieth and Catharine Streets, with requiem mass at St. Francis de Sales Church at 10 A. M. He is survived by his widow, Mabel J. Haller, of 5130 Cedar Avenue. m U. S. TOBACCO OFFICES TO BE MOVED IIK United States Tobacco Company, one of the most important concerns in the snuiT and to- bacco iiidustrv, has leased the entire twenty- ninth lloor ill the forty-story International liuildiug in Rockefeller Center. The company will move to the new building in October, after occupying ils present (luarters at 1107 Hroadway for eighti'en ' ' (iriginallv a part of the American Tobacco Com- l)anv, tlPe invicnt Cnited States Tobacco Company was inco'rporated in 1911 as the Weyman-Bruton Company. In VJ'2l the Dill (^mipanv was purchased and the lol- h.wing vear tlie United States Tobacco (^mipany was bought, *at which time tiiat name was adoi)ted. The c(mii)anv is the largest manufacturer ot smut in the w(U-ld, and its tobacco products include moist MiutT and Scotch snulV and siu(»king tobacco and chew- ing tol>acco. The removal to Rockefeller Center re])resents an .xpansion in company activity. The new cpiartiTs are hwixvv than the present >pace, which houses the comj ].anv heat, secretary and treasurer, and J. W. Abbott, auditor. BAYUK TO BUY STOCK Bavuk Cigars, Inc., ha> sent a letter to ])referred stockholders asking them for tenders of their holdings of ineferred stock at the reth-mption price of $110 and accnuHi dividend until October .U, V.m. The company intends to i)nrchase up to $2:)(),()ort include a balance of $281,56.5,270 carried over from the 1934 fiscal year, ending June 30, 1934, from appro- priations and trust fund receipts; and in addition to these funds receipts from appropriations and trust funds durimr the vear amounting to $111,900,020, mak- ing a total of $.393,4(5.5,290 available from funds Not dtn-ived from ])rocessinu taxes. At the beginning of the fiscal vear a balance of $71,572,151 in processing taxes was 'carried, to which collections since reported up to Aiuil 30, 193.5, have added $453,007,693, bringing the total of funds available from processing taxes to $524,.579,844. It was pointed out that processing tax collections shown in the report lagged a month behind expenditures reported changeable against processing taxes. R<>ntal and benefits cumulative for the period of the report, were divided as follows among commodities: Cotton, $102,503,017; wheat, $97,50.3,986; tobacco, $23,- 784,768 ; corn-hogs, $296,435,801 : sugar, $15,320,123. Removal and conservation of surplus operations included: Ho^r.s, $1,408,886; wheat, $1,087,744; dairy products, $6,507,373; sagar, $365,536; and peanuts, $674,(M)8. Drought relief, footl conservation, and disease eradicatioli oj)erations an- listed as $l2t),.583,408 spent for cattle, including $9,586,637 for indemjnties paid m the disease eradication program; *95,7Hl dis- tributed to producers who i>ooled their excess cotton tax-exeniption certificates fnr sab- t.. producers with exojss cotton; and $50,744 from a rice trust fund set up under the southern rice market inir auneement. During Mav, farmers co-o|)erating in adjustment programs received a total of $36,790,148 in rental and l»enefit pavments, of which $16,043,225 was paK^ cotton r.roducers', $2,877,272 to wheat growers; $.3.0i.3 .^23 to tobacco producers, $10,362,121 to corn-hog producers; and ^434,205 to sugarcane and sugarbeet growers. Augmt 15, '935 GROWERS MAY PURCHASE UNUSED SALES ALLOTMENTS ilOXTRACTING flue-cured tobacco growers may iiiai'ket tobac<'o ^rown in excess of their present sales allotinciits l)y ])iirchasing the un- used sales allotineuts of other contracting growers, and havin.L;: their allotments increased in the County Agent's office, the Agricultural Adjustment Administration announced today. .1. B. Hut son, director of the Tobacco Division, saili.m ;„„,ounoo.l l.ulay tlial ,i;row..vs ..f Ihio-ouro.l t„biu-ro will W otr.Mva m, •Hl.iMstm>.„t pry- L'ram. oovuriii,« llio crop vcnrs l'.l..l> o L'^i-', inolusivo, wlm-h i. in ,.lT,..-t a «-"'|;,V;"^'",";' .':' ""' '"'"" gram in lV»vo lor lli.' crop year- '.4 an.l 1. u . \. a result of adjuslnu.m ol acrcafiv aii( pioduc- f ion 'in VXn and liK;:.. sur,,lns Mo.ks wlucl, doprcssecl rioos Imvo l-con roniovcl. .). 15. llul>o,. dnvHor ol he Division of Tol.a.-.o. Sn.^.r, Hi.c an. I'^.nnls sau , however, thai indiealions were that wilhont a., ad. .st- n ont pro^n-am prodnelion ..f tln.-.-tnv.l toba.-eo m ! . f "•onld be out of balance with consumption t,. s„cl, an e."tont Ihat prices wonld .leclinc bdow pardy pr,ce o. fair exchansie value. , i ;„ Smv\y-.\^M Vvv v.n\. of the .urmv.rs who voted m the fliie-euml tohaoM, ivfciviuluni heUl ni .luiu', l.»..o, voted in favor of a program Iwivm^ '^'' ^'TT^X ^ corporated in tin- nev.- eontraet. Ai)ia;oxnnat('l> ^4 pi cent of all tohaeco -rowers, ineludmu land oNMiei>, tenants and ..hare-en»pper>. east votes m the reter- ^''"^'Tlle in-o-ram for tho vmA9:\0 period will: earry forward aerea-e and pnulnrtion bases a ready estab- lished with sueh downxNanl .uul upward ad.iastnienls as will resnlt in more eeai and set a limit" of .r, per eent. cm the acreatre and pio- dnction reduction whieh may b.- requireil m any cnie '"^""^he new ecmtraets will lu- si-ned by pcrw^ns who are oneratin- farms as owners or i-ash or standm- rent tenants. In ea^. a landlonl dors not .miimmvis,. oprra- tion of his farm.and the entire farm is operated by one share-tenant or share-eropper, either iIh- hmdlord or Ids tenant or share-eropi.er may sitrn the eontraet. The eontraet provides for a payment whieh xmII give growers a return -Xor h-^s than th- .lifT, nmee between the average farm price and the av.ra-e pariiv price for that portion <»f thi- erop whieh is equal to domestic consumpii«»n.'' In other words, the payment will be ot >ncii an amount as will make up any diff.renee between actual farm price received and parity price on the douh'sl^ic portio^i of the crop. A lilt!, ov.r 40 per c.nt. (;, in order to be elTective tor that year. • In the reguhir lIKU-llKir) contract, growers were permitted to I'stablish base acreage ami production tor heir contracts fnmi pn.dnction in any one or any com- bination of the years VXW, 1!K?-, and llMl I he !)... special base contract provided f<.r establishment .)t l/ises for those growers who could not obtain an e.iui- table base under the regular contract. In the new ijro- oram the bases already I'stablisln-d will be adjusted to obtain more i'quitable bases as between all classes ot on.wers Downward adjustment in the present base for a grower cannot exceed 10 per cent, except in case „t nverstateinent. Provision is made for some mUli- lional contracts with tobacco gr.»wers who «'<^"l;l i;:>t qualify for ecpiitable allotments under the VXA-IXU "'" Vv<»vhion is made for canec-llation of a i)roducer's c-nntraet if he plants less than oO per cent, ot his acre- a..e allotment for two consecutive years. In such cases, the contract will be terminated as of the end of the tirst vear without atTecting the iiaynient tor that year. A \u'^^■ contract for the second year may be entered into with the producer with such an adjustment as will re- .Milt in an aeicage in line with that to be i)lanted on the '^^Mr Hnts(.n said this ].rovision was not intended to require planting <»r the full acreage allotment, but rather to provide for neee^ary adjustments in cases where irrcjwers desired to decrease' their plantings ot tnbacnr because of changing ecomunic conditions or other factors. , ., i * • The contract covers four years but it may he termi- nated at th.' end of aiiv vear'by an individual grower. In caM- of termination by the i»roducer, he must sub- mit a nntiee (»f his intention not later than .July 1st ot tin- vear preceding the vear for which termination is leqiiested. The secretary may suspend all contracts for anv vear or terminate all cont racts at the beginning ,,r nnv vear bv proclamation not later than October Ist ot" the preceding year. , . • ♦ Mr. llutsrm saiTnent will 1^ made in trust to the operator for distribution to each -hare-tenant or shar.- cKqqMM- in th.' proportion that the number of acres in the share-tenant's or share- rropper's share of tin- tobacco grown by him lK'ar.s to the total number of acres of tobacco grown on the farm. For example, if twenty acres of tobacco is planted (,ii a farm in anv year and one of the tenants has a four- acre crop planted on a one-hHlf share basis, the tenant wonld receive 10 per cent, of the total payment for the " * The new contract also provides that the number of tenants and share tropiMrs on the farm and the per- centage of the tobacco acreage grown by tenants and share-croppers may not be reduced l)elow the number and percentage in 1935. The Tobaeeo World TOBACCO PROCESSING TAXES $48,469,115 11 K Agricultural Adjustment Administration today reported that cumulative gross receipts of processing and related taxes from date of imposition through May 'M, liK^), had reached a total of Ji;8(;(;,(;M4,l)S2.40. The jirocessing taxes have been collected on the tirst domestic ])rocessing of <'ight agricultural com- modities designated by the Adjustment Act as basic, and c;U,Ol!Mi(;'J.!)S; coHon, H^2:5(M5-^4,in2.!)0; paper and jute, *12,:nn,7n4.27: tobacco, $48,40! M1.).01>; liehl corn, $10,H<;(M;-"")0.:)1 ; hogs, $2r)4,;nr),5H().H<); sugar, $(U,5(M),r)Ol.l4; iM^annts, $:5,:m7,4: J>i' X. H. 3,471,572.80 X. J. 7,778,517.02 X. Mex. 256,787.75 X. Y. 94,574,563.89 (Coniinu August 15, 1935 Tobacco 27,127.40 3,381.43 18,«»35.04 80!M>17.09 1.3,530.97 .V2J 11.48 118,400.39 714,117.11 49,940.04 1(1,701.47 4,098.99 1,202,257.25 l<)9,500.ti2 44,282.42 10,190.00 4,7tK),438.05 78,05t».42 13,14<).3() 153,071.16 120,678.05 708,942.49 01,844.74 15,8l iH 2,495.59 1 «),8.>.).58 69,3^.25 1,8(14,939.00 5,219.70 ?ROFIT BY THE NEr DEMAND FOR OLD GOLD A new heavy demand for Old Gold is sweeping the country. New dealers especially have sensed this trend. They are not only stocking-up, but playing-up Old Golds. The makers of "America's Smoothest Cigarette" are cooperating with a new line of timely win- dow cords and other helps that every Old Gold dealer should have on display. Ask your jobber to help you sell more Old Golds. P. LO R I LLAR D C O., I NC. £ilabli(fi«d 1760 119 WIST 40TH fTIIIT NIW YOtK CITY dueeis' Sales __ TOBACCO TRADB OEQANIZATIONS TOBACCO MERCHANTS ASSOCIATION OF UNITED STATES <^^ JESSE A. BLOCH, Wheeling. W. Va. ....... JULIL'S LICIITENSTEIN, New York. N. Y. WILLIAM BEST. New York. N. Y. ...^...... MAI. GEORGE W. lULL. New York. N. Y. GEORGE H. MUMMELL. New York. N. Y. . H. H. SHELTON. Washington. D. C WILLIAM T. REED, Richmond. Va. HARVEY L. HIRST. Philadelphia, Pa ASA LEMLEIN. New York. N.Y. ............ CHARLES DLSHKIND, New York. N. Y. ...Preiident Vice Pretident ..Clhairman Executive Committe* VicePretidant Vice-Preaideat Vice- Preiident Vice- Preiident Vice-President ...".' Treaturar .VCottOiel and Managing Director Headquarter*, ^l Madiwn Ave., New York City RETAIL TOBACCO DEALERS OF AMERICA. INC. WILLIAM A. HOLLINGSWORTH. 233 Broadway New ^'^L'JVe^ice.p^l'JSt CLIFFORD N. DAWS«)N. Buffalo. NY Executive ^'^ f ^"'"^ JAMES C. THOMPSO.N. Chicago. Ill Treawrw ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS lOHN H. DUYS. Kew York City Fi;;;' Vice-Prr.ideS rtllV"? Et?iv- klT\-oVk a'.y ;:::::::..:::.::::::s£«d vlclKHldent EEl^tM.S:"^^r^?^aiy' .;:::::::" SecreUry.Trea.«rer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ftvlsV^uii^'lcnZ.'^^^^^^^ ^"-'^ ^*"t"it:?; A STERNBERG. Newark. N. J Secretary RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA n.x-if»»«- V, ...President ...Secretary ^M?EL MAGI™ Wl N.MerVine" St.; Philadelphia. Pa THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS, INC. r ASBURY DAVIS. Baltimore. Md ;;• ;■•«■'*>■• CH^^ lOSEPH KOLODNY. MO Fifth Ave.. New York. N. Y ....S«ef«tt«y GEO. B. SCRAMBUNG, aevaland. Ohio Trtaittfw UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION {pERMAN^H.^YAFre." 'joV FoV BuiidingV PhiiadeiphiaV PaV ::'. : Preaideat ..Secretary _lli EsiablUhed 1886 'BEST OF THE BEST 99 M»,f ,ctur>d b. ^ SANTAELLA & CO, Office, 1181 Broadway, New York Ci^ FACTORIES: Tampa and Kto West, Florida OUE HIOH-GEADE NON-EVAPOIATINO CIGAR FLAVORS^ ^^^^^^ ^^^ ^^^^^^ ^^ ch.r.ct., and Impart a moat palatabla flavor FUYORS FOR SMOKING tid CHEWING TOBACCO Write lor Llat of r»«vora lor Special Uj^Jj „,„ BMTUN. ABOMATIZEl. BOX FLAVOIS. PASTE SWEETENEBS FRIES & BRO.. 92 Reade Street. NcwYork .•■ ".\«'.,.*' Classified Column The rate lot this column b three cents (3c.) • word, with a minimum charge of seventy-fi»« cenu (75c ) payable strictly in advance. POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large foUowini. Address Box No. 580, "The Tobacco World." CIGAR FOREMAN HAVING 6 YEARS' EXPERIENCE ON Automatic Machines, wants p^ition. Also instructs beginners. Address Box No 582, "The Tobacco World." VENDING MACHINES ADVANCE CIGARETTE MACHINES $19.50 each. ROWE 6 Column Cigarette & Match Vendors $38.50 each. Peanut Ma- chines, Amusement Pin Tables, Electric Cranes at low prices. NATIONAL, 2401-15 Chestnut Street, Philadelphia, Pa. CIGAR FACTORY FOR SALE OHIO CIGAR FACTORY EST. 1860, FIRM RETIRING. Brands are all modern, well advertised in local market and produc- tion now about ten thousand per day — capacity forty thousand. We have discounted all our bills to date and we are willing to sell at a very reasonable price. Address Box No. 581— The Tobacco World. HAVANA CIGARS BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT LOVE— Adopt as your slogan, "Kts» your beer, but love yoor d- gars." Sj^ecially those Havana blended, "Good to the Uft Pttf," Manufactured by A. Ramirez & Co., Post Office Box 1168. Tampa, Write them for particulars today. Tobacco Merchants' Association Registration Bureau, 341 Madison Ave. NEW YORK CITY Schedule of Rates for Trade-Mark Services Effective April 1, 1916. Registration, (see Note A), $5.00 Search, (see Note B), 1.00 Transfer, 2.00 Duplicate Certificate, 2.00 Note A— An allowaoce of |2 will be made to members of the Toteeee Ms»- chants' Association on each registration. Note B— If a report on a search of a title necessitates the reportiof of mora than ten (10) titles, but less than twenty-one (21). an additional charge of 0«« Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty (20) titles, but less th»n thirty-one (Jl). an additional charge of Two Dollars ($2.00) will be made and so an additional charge of One Dollar ($1.00) will b« made for e^ery ten (10) additional titles necessarily reported. REGISTRATION NITE CLUB:— 46,470. For cigars. M. Epstein, Baltimore, Md., .May 10, 1935. TOBACCO PROCESSING TAXES (Coutiuucfi From Page 17) State Total • X. Car. r)2,7(;3,4(;o.7() X. Dak. 1,<)41),0U.25 Ohio 28,.318,608.18 Okla. 7,3r)2JI)r).51 Ore. 6,3:r),971.92 Pa. 27,541JJ)H.(;2 R. T. .■),2f)lM)43.81 S. Car. :U,(K)7,998.57 H. Dak. 852,698.87 Tenn. 12,033,5()1.2() Texas 22,438,129.91 rtah 3,(K)8,138.2:) Vt. 521,723.79 Va. 16,537,126.83 Wasli. 8,773,532.96 W. Va. 1,941,945.59 Wig. 8,693,942.34 Wvo. 402,789.32 Tobacco 14,227,219.14 2,524.12 2,534,313.50 17,087.92 12,831.67 2,494,431.58 15,049.36 36,082.51 4,799.68 1,040,133.43 92,979.57 4,()1H).69 4,704.42 4,415,953.79 20,976.80 467,558.01 80,541.03 2,442.60 Tobacco Pro- ducers' Sales 417,756.40 62,822.92 17,235.93 460,679.56 336,703.48 37,956.84 Totals •ToUl $866,694,982.44) $48,469,115.09 $3,229,243.25 for all pr«csiing and related taxM c^lwted. Send Two I>ollars, with the coupon below to The Tot»cco World, 236 Chestnut St., Phila., Psu, and get your copy twice a month for a year. SEPTEMBER 1, 1935 RECEIVED StP 3 - 1935 The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phila., Pa. 9 Hanover, Pa, Cincinnati, Ohio York Pa AUTOKRAFT BOX CORPORATION Chicago, lii Lima Ohio Detroit. Mich. A NAlion Wide - -- i^c Wheeling, W. Va. < ■ ■ iiimiimiiiiii HIIIIIIIIIIIIIIII PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST. PHILA.. PA. THE TOBACCO WORLD Vol 55 STPTEMBER 1. 1935 No. 17 H^m^^^^^ 1^ 104^^ ^_,^ MQjj^ 4^^<^^^-^ Mm^ .X^eaJ^ ^^•«**^ gS^ ^,^L«^— "^kj-Sb^^^s^i^S^^ SiS^'.w '*-C^ vt =/ bf lluir I ■-v *< \. it'-hi-'-. COSTLIER TOBACtfir! ( .iiiuK atL m.ulc from luur. MOKt I X"l N^|\ I JciltAc < OS — Iiirki'-ii .irul Dormstic — than am utiu r pn|nil.u hrarul. %, r^ fAMOOS ATHtCTIS APPROVE CAMttS, SO THEY MUST HAVE REAL MILDNESS. THEV ARE GENTLE TO MY THROAT AND \\ WHEN IM TIRED I GET ALIFT' WITH A camel! HOMEMAKER Mrs.J. H l\ck\ \ CAMELS OO NOT FRAZZLE MY NERVES OR UPSET MY CONDITION: [ AND THAT CAMEL TASTE IS JUST WHAT I WANT.. MILDNESS COUPLED WITH f^ULL R"CH FLAVOR'] I FOLLOW TIIOIN, SARAZtN, OCHRIG AND THE OTHER SPORTS STARS IN SMOKING CAMELS, I SMOKE CAMELS STIAOH-V THEY NIVtR OiT MY WIND ^ (3HK oiKM)ura.i;iii,u' nows for tlic tol){U'c<) indus- try is contaiiuHl in the report of the U. S. Hev- enue Department for .)uly. The figures dis- close the ]>i,u',ut'.st July pnxhietion of eiuarN sinet' 1 !).*>!, the ])iacco ."^ince the same yrar, and an all-time rec- ord-breakini;- production of ci«;arettes. ('i,u:ars showed a uain of r)4,l(>:5,l(;i>, or 14.;5U i)cr cent. Manufactured tobacco increased r>41,7S<> pounds, <)r -;<>-M>y]" ,5t'»»^- Ciuarettes showed a total output of l."?,l.')H,r)()(),r)6.S, an increase (»f l,7H2,44r»,:n:?, or lo.Tt) per ceiit. To complete the record, little cigars increased 2,()r)4,r)4(), or 19.77 per cent., and the only division (»f the tobacco busi- ness to reveal a decline was snutT, which returned a loss of 1(56,778 pounds, or .").!>!> per cent., but it was inevitable that this i)roduct, which maintained sur- ])risinjyc ??ains durinij: most (»f the depression, should linally begin to dip down th<' other way. The various classes of cigars lined u]) in this fashion: A gained 54,- '^72 180, or Ifi.nr) ])er cent.; H gained 2,3Jm,34(), or o^.GO l,er cent.; (' declined 3,278,168, or 7.30 per cent.; I) uained 747,447, or 26 in-r cent. ; and E decreased :U,63U, or 11.93 per cent. ▼ LAVAYS interested in the early history of to- bacco and smoking, we have been greatly en- tertained by the discussion of the religious origins of the use of tol)acco, written by Phil- ippe dc Felfee for the lUruv lute mat uniah' ths Tahacs and translated bv J. Kichards for the Camntian Cigar and Tobacco JnnrnaL We learn from this abstract that, primitivelv, tobacco was not used for enj(»yment Imt for ritual purposes. The existence of those rites is attested by a great nundier of facts. For example, it is certified that in the (dd Mexican religion tobacco idayed an important part, and during the rites the priest.H smoked, and pipes were ottered in sacrihce to the god of hunting. Likewise, the Mayas ot \ ucatan tti«i tobacco for ritual fumigations taking place dur- i^ all their religitms ceremonies. 1IKS^] oblations of tobacco have been observed in other circumstancc^s and among many tribes (,f North America. When the navigator, Henry Hudson, came to the Manhattan In- dians thev thought lie was a god and ottered to him tobacco leaves. The Iro<|Uois burned stmie ol it to calm the god of thumler. The Ottawas thnw s.mie awav into the flames. -Kverybody cries out, says Father Lafitan, ** while the petmi i^s burned and the smoke soars upward, and the sacnhcc concludes with those clamors." The famous calumet «^ peace was nothing else than a rite of communion. The same pipe passed from one mouth to another and the same to- bacco was smoked, to indieate the supernatural and inviolable nature of the pact concluded. <)\V it remains to find the reason for attribut- ing to to})a('eo that ritualistic character which generalized its use in the new continent. In fact, the solution of this problem originates . . . in the existence of nicotine in tobacco. This al- kal<»id acts upon the nervous system in the same man- ner as an anaesthetic and causes a special inebriation which makes the human being pass from the normal state of sleeplessness . . . and delivers the soul from the hard contingencies of reality. By that tobacco supi)lies, in its own way, one of the most imperious needs of humanitv. It otfers a little satisfaction to the instinct of getting out of oneself— in other words, the religious instinct. MONO the divers arguments brought in by smokt-rs to justify themselves, there are some to which they ai)peal as the result of observa- tions, more or less exact, upon themselves. ToVmcco, thev say, has propliylactic powers; it removes danu:ers of infection and contagion. It secures a kind of physical and especially a moral anaesthesia; it is^ a recreation, a means (.f banishing weariness, and of escai»ing out of oneself. It appears to many people as a source of inspiration. In following with one's eves the rings of smoke, rolling and unrolling, one feels the charm of a dream, which, remaining with- out anv object, allows the idea of going out of the circle in wliich it was prisoner, and being thereby re- leased from the mechanisms set up by itself. ^^^^^^^ ('('ORDIXO to the results of a survey made by the magazine, Fortuuv, 6.')..') per cent, of the men under fortv in this country smoke ciga- rettes and 34.5 per cent, do not; 26.2 per cent, of the women are cigarette smokers and 73.8 per cent. are not. In other words, one-third of the young men and three-fourths of the voung women do not smoke ci«'arettes, indicating that not only is there an enor- mous unexploited field for cigarette consumption but that we mav expect a mathematical increase as the voun^'cr generation reaches the other side of forty. The report goes on to say that in 23 per cent, of the homes canvassed there is more than one cigarette smoker, and in about one-half of these more than one brand is smoked. Questioned as to who smoked the brand first, where the same brand is used, the per- Hons nueried revealed that in 71 per cent, of the cases it was the husband; in 17.3 per cent., the son; m 8.1 per cent., the wife, and in 2.9 per cent., the daughter, showing a strong male preponderance in influencing the smoke taste of the family. The TOBACCO WORLD (esUblUhed 1881) is Published by Tobacco World Corpo^^^^^^ MB. Haniins. Secretary. Office. 236. Chestnut Street PhUadelphmPa.^^^^^^ Entered as second-class mad matter, Gerald B. Hankins, Secretary. Office. ^•«»>j;f^Vr $2(W a vear 2rcem foreign. $3.50 a year. ti^^.rVj'S^T^yi^f'o^^'v^^ Acfo* Ma?c^h 3. 1879. Federal Trade Commission Accepts Rules of Fair Trade Practice for Distributors I T was aiuiouiu'c'd uii August LMllh thai tho Vvd- oral Trade Coiniuissioii on that day in Wash- inulon has act-opti'd the si'lf-uovfrnniont i)lan ()t'"^thi' National Association of Tohat'co Dis- tributors. , . , 1 T 1 In c'oiim'rti<»n with the ath)i)tion ot the plan, .losepli Kolodny, executive secretary of the National Associa- tion of Tol)acco Distrihutors, issued the followinir state- '•Our negotiations with the V lur Irade i ractice Conference Board of the Federal Trade ("onunission, in an endeavor to secure appi'opriate rulinus for the ouidance and the administration of the wholesale to- bacco trade, liave been conducted in a fashion worthy of the hinh >tandard of the Federal Trade ( 'onnnission. "We shall aim to administer these rules in a man- ner deservinu' of emulation by other industries. ♦'We believe trade practice conference rules, as approved bv the Federal Trade ("ommission, ]»resent a sjdendid vehicle for the ])romul,ualion of selt-goveru- ment in industry." • • • Ke«,ional conventions for the diseussicm of the now FederaF Trade I'ractice rulin-s, approved by the fed- eral Trade Connnission, will be held at the tollowin- points: . Birmin-ham, Ala.; Phoenix, Ariz.; San brancisco and Los Anireles. Cal.: Denver, Tnlo.: Atlanta, Oa.; Chicago, 111.; Indianapolis, Ind.: New Orleans, La.: Boston, Mass.: Detr(»it, Mich.: Minneapolis, Minn.; Jackson, Miss.: St. Louis, Mo.: Newark, N. .L; New York t'itv, N. Y.; Svracuse. N. V.: (ire«'n-«boro, N. ('.; Cincinnati, Ohio; Porthnid, Ore.: Pittslmrgh, l*a.; Harrisburir, Pa.; Memphis, Tenn.; Dallas, Texas; San Antonio, Texas; Richmond, Va., ami Seattle, Wash. • • • In a previously is>ued statement Mr. Kolodny said: , ,. , * 14 *'This is the first Industry that aiJphed for and ael- uallv participated in a Federal Trade practice confer- ence, since the abrogation of the NBA. In eonsidenng these proposals, the Federal Trade Commission is prac^ tieallv desiirning a pattern for all iiulustry in the I nited States. De>iuning a garment is a much more trying ordeal than cutting the garment after the pattern has been finished by the designer. *'When the rules for this industry have been ap- proved, all industries that loUuw will find their tasks much simplified, inasmuch as a precedent has been established. . "There is no need for any nervousness about tlie matter Big issues are not adjudicated with any un- due expedition. They retpiire ure and irrevcK-ably cement uk Phillies in the Vincennes, Ind., territorv where hey have the distributing privilege. . . . Kearney- l.eli- „,ann Co., Inc., ButTalo, N. Y., are torg.ng alu-ad in the sale of Bavuk Phillies m the Buflah, ^' 'itoi ^vhere the brand is in good demand. . . • H..l.ert J. Fellows, Bound Brcu.k, N. .1., is going good on Hayuk PhUlies and requests f(»r aihlitional shipments be- yond standing c»rder are reaching the factory to meet the tlemand in his territory. G. H. P. JOTTINGS DVHHTISlNti and luumiotional work on Kl Productr. ami La Azora have bwn producing good results, and the (ML P. l^eople are look- ing forward to a gratifymgly large Nolume during the coming months. . . . Sol Bonis ein, a.^ S sales manager, has n-tiirned t'--,;^ -»- ^^^ .. ii • I 11 ,f..^* •mil ri'iinrts a sUnsiaiHuU lUi tour ol till" miililK' »i-m .umI h |> .n .1 ,■ , •i,,,,,,,.^ nrovt-mi'i.t iti (•ou.liti..tis amoiiK 1.iiuk-1r>n liMiil.ul. > ml 1^1. rs. 1 1., was ,.s,„...iaiiy I'l'^'^"';" ''.';' r"/;;^" ' , «H this that ,..vparali..ns »'^ "' "^." ! " , V'« tu.Hto.1 himsolf to a vac-ati ...1. "nu-h »! '';.'"';,,; he ami his family air s|i.Malint; m a li.int l..r a n. « home ill the IMiiladHphia mtIch-. {Continued on page 12) Tin Tcbaeta WotU The faiii.Mis house of Manelino I'.n/ & J'o., THmna F inaiuifa.luieis of h.^h Stnule dear HavS el' n's W many year«. has ii,„-o.luee.l a new brand known as Nonpareil. The ";'- ;;;«;;'- cl- inches lonit aii.l letaiU at hlleeii e.iils lot a pa.kaj,. of five. It is ineelinK with a sph.iuli.l leeepUon aiiionK the consumers. September t, I9S5 Trade Notes The Medal of Honor cigar has proyen a favorite , . .;. •,♦,.!■ Mi \il-mtic Citv durinu" this summer, aiiionu visiloi>> iiiiiin-, ^ ^ ^^ , and has shown the same increase m popu territorv. laritv in this Mr .Tosei»h Wauner, of John Wagner & Sons, ac- ^.ompaiiied bv his son, is speiuling his vacation in Maine, where he is enjoying a well-earned rest. C W. Saunders, of Schwab Davis y Ca., \yas jn tc»wn last week visitinu jobbers and retailers in the interest of his brands. William Anderson is working northern Pennsyl- vania territorv in the interest of Antonio v C leopatra a a ihe Corona line. Ilernmn Abranis, ot the Medalis f u-toiv, is als<, in the same territory in the interest of his hraiid. Ben Lumlev, of the (Jarcia y \ ega tactor , s workin- in Philadeli.hia and surrounding territor>, where his brand has been showim^ a steady increase in (U'liiaiid for many months. Paul BroL^nm, (d' Yahn k Mclhnmell, has leturncd fion a vacation trip to Wildwoo.b where l^o enjoyed a umch needed rest and returned looking ht a. a fichUe Barton Lemlein, of M. Sacks & Co., who has just Hurne.1 from a trip through the western ].art of la ountW, was a visitor in t<>wn last week and nq COUl that his recent trip in many years. was the most successful he has had (hM„-e Stocking, of Arango y Araiigo, Tampa, F1-. miiuifacturers of the Don Sebastian brand, was nvi^ir^ the local distributor's headquarter. Jo ni t\^.ne^ & Bons) last week. Mr. Stocking r^V^^^'^ ^^' nmuTL his bnnid showing a nice increase, and tlus ^'^e;>rrol<.rated by L B. White, manager of John Wairner ^S: Sons' cigar department. I 1935-36 Adjustment Program for Puerto Rican Tobacco Announced X AD.U STMKXT i)r()i;iam lor llic 1933-;;<; cTop of type 4(), ciKar-loaf tol)acH'0, .u:rowii in Piiorlo U'wn, lias boon apiirovcd by Secretary of Auriculture Iloiiry A. Wallace. It was an- noniicoil on Aiiiiust l.'Uli that the Secretary was exer- cisinu: his option in the contract to continue for this yearlho prtxbiction adjustment contracts entered intc) with Puerto Kican producers in 1934. The program for PKJo-ol) offers each producer a choice of two rates of reduction in his tobacco acrea.iice. The reduction from the base acreaji:e may be either 35 l^er cent, or 20 per cent. Producers who clioose the 35 per cent, reduction will be permitted to harvest both the lirst and the second crop of toVjacco from their allotted acreai^e, whereas producers who elect to re- duce only 20 i)er cent, will be permitted to harvest but one crop of tobacco. The rates of payment for l9:55-:u; are in accordance with the i)rovisions of the existing contracts. Tlie rental payment will l»e at the rate of $:-.0 ])er cuerda of the rented acreatre (1 cuerda eipials 1.01 acres). This rate is the same as that imid in 1!K;4-35. I*rovision is also made for an adjustment payment at a late to be determined by the Secretary wliich will tend to lifive jiro- dueers the fair exchan«re value for their t<»l>acco produc- tion. A minimum adjustnii'Ut payment of ^I'^^IJ^J' cuerda of the rented acreaire is u:uaranteed f(»r 1935-3(1. Benefit jiayments for 1935-30 Puerto Kican lol)acco program are expected to total approximately $1,113,(KM) compared with *1,884,(KM) for 1934-35, and $(;34,tKK) in 1933-34. It is estimated that total income of these growers in 1935-3(5 from tobacco sales and benefit pay- ments will be apiM'oximatelv $7,329,000, compared with $6,134,000 in 1934-35, $4,(H4,(MHj in 1!»3:! :U, and $2,640,- 000 in 1932-33. F. W. SOMMERFELD RESIGNS PRESIDENCY AV. SOMMERFELD, president of the F. W. Sommerfeld Cigar Co., Miami, manufacturer of Verdi and Dulce and other cigars, has an- no\inced his rctirenaeiit, Mr. Sommerfeld, prominent in New York and Florida for many years as a manufacturer, will remain as chairman of the comimny's directorate. The firm has no outstanding debts and it is understood that tin- reorganized company will l)e financed from the profits. Under the new s«t-np, Huell i\ Rollins becomes president, Jos«' (lonzales, treasurer and general man- ager in charge of production; ('. W. Sanderson, secre- tary-; J. A. Prieto, sales manager. Mr. Sommerfeld was formerly president of Carl Upmann, Inc., New Vork, later establishing h\> own plant in Tampa, which was moved to Miami in 1929. Mr. Rollins, who resigned from tlie EU Witt Tobacco Co. to assume his new duties, w^nt to Miami in 1924 from Dothan, Ala. l\o joined the Witt firm in 1932. Mr. Gonzalez, who has been ideiititted with the cigar industry npwanls of twenty five years, has been with the company for the past five years and Mr. Prieto has supervised sales and distribution since the inception of the company. It was also aniuMinced that growers who did not pniticipate in the adjustment program for this tyjie of tobacco during the iirst two years of its operation will be given an ojiport unity to sign contracts for 193,)- 30. Tlie ])eriod for recei\ing new eontracts will be announced in the near future. The 10,000 contracts now in effect represent api»roximat»'ly 1>0 per cent, of the number of grow«'rs producing this type of tobacco. The program is expected to ri'sult in a 1935-3(5 crop of approximately 28 million ihmuuIs. Consimiption was approximately 27,5(HM>00 jiounds during the 1934-35 season. A small increase in consumption is expected during the next year if the present trend of cigar con- sunijjtion continues. When this ])rogram was inaugurated in January, liKU, the supplies of Puerto Rican tobacco were in ex- eess of the re<|nirements for conNumi)tion. The adjust- ments made by growers in the 1933-34 and 1934-35 cr<»p^^ liave res'ulted in the rem(»val of virtually all of this excess tobacco. For this rea>on it is desirable that the 19:55-3(; crop be e2 :*:5 ri(»p, 17 cents ]M'r ]>ound for the 193.3-34 crop, antl about 20 cents jier i)ound for the 1934-35 cro|). Under an ailministrative ruling recently a])j>rovefi for ijlanting food crops for home consum])tion, fetnl crops for live- stock or livestock ])roducts for home consumption, or may be planted to soil imjiroving or erosion preventing cro]ts, pastuns or to forest trees. TOBACCO ACREAGE DECREASES ONE THIRD IN LOWNDES COUNTY, GA. I ('!?KA(;K <»f tol>acco in Lowndes County, Oa., (lecreaM-d 14 per cent, between 1929 and 1934, ac<*t»nling to the Federal Farm Census prelim- inarv report released last wei»k by Director William L. .\ustin. Bureau of the i cnsus, Department of ( 'ommerce. The tobac<<. a. nage decreased from 4951 acres ill n»29 t«i 3293 acres in 1934, and the ]jroduction decreased from 4,1!M>,(]39 pounds to 2,392,376 pounds. The aer<>age of corn for all purposes was 29 per cent, greater in 1934 than in 1920. Corn was harvested for grain from 36,446 acres in 1934, with a production of 4 ( ouiity wa« 1H42 in 19:'>5 as compared with 1925 in 19m The average size of farms was 122.5 acres and the average value of land and buildings per farm was $2363 in 1935. Tki Tobacco WorU 171,691 Growers Voted to Continue Pro- grams in Four Tobacco Referenda HE Agricultural Adjustment Administration announced August 16th that virtually complete returns from the referenda conducted to de- termine if growers of Bnrley, fire-cured, dark air-cured and cigar filler and l)inder tobacco desire an adjustment program to follow the one that expires with the current season, shows that producers who voted were overwhelmingly in favor of the continuation of these j)rograms. All share-tenants, share-croppers, renters, and landowners participating in production adjustment ])rograms or actually engaged in the commercial pro- duction of tobacco in 1935 were given opportunity to vote. The question voted on was: "Are you in favor of a tobacco production adjustment program to follow the j)resent one which expires with the crop year, 1935!" Exclusive of Indiana, 117,792 or 62.8 per cent, of the growers eligible to vote in the Bnrley referendum actually voted. Of those voting 109,981 or 93.4 per cent, voted in favor of a program to follow the one which expires this season. Bnrley tobacco is grown ])rincipally in Kentucky, Tennessee, Ohio, Missouri, West Virginia, Virginia, and North Carolina. A total of 32,997 growers, approximately 63 per cent, of those eligible to vote, voted in the referendum for fire-cured tobacco. Of those who voted, 30,359 or 92 i)er cent, favored a program to follow the present one. Fire-cured tobacco is grown principally in Ken- tucky, Tennessee, and Virginia. Returns show that 13,241 growers voted^ in the dark air-cured tobacco referendum. This is 72.3 per cent, of the total number of growers eligible to vote. Approximately 92.8 per cent, of the growers voting favored a continuation of the adjustment program. Dark air-cured tobacco is grown principally in Ken- tucky, Tennessee, and Virginia. A total of 20,258 growers voted in the referendum for cigar filler and binder tobacco. This is 74.3 per cent, of the total number of growers eligible to vote. Of the growers who voted 19,066 or 94.1 per cent, were in favor of extending production adjustment programs. Cigar-leaf tobacco is grown principally in Pennsyl- vania, New York, Ohio, Indiana, Connecticut, Massa- HEINE'S BLEND IN EEDWOOD HUMIDOR FINE'S BLEND, that distinctive blend of high- grade smoking tobaccos, has made its appear- ance in a new and novel packing consisting of a genuine Redwood humidor and jiipe-rack. The attractive package contains a substantial (juantity of Heine's Blend and a rack is provided on each of two sides of the package to hold your pipes when not in use. The wmbination package retails at $1 and has made its ap^rance in the Western territory where it has been enthusiastically received. Placements wdl be made in Eastern territory as quickly as production facilities will permit. The standard packings of Heine's Blend will be continued as heretofore. Heine's Blend has always been a favorite with smokers of high-grade mixtures here, and is being dis- tributed in this territory through Yahn & McDonnell. SepUmbtr /, ^$$ chusctts, New Hampshire, Vermont, Wisconsin, and Minnesota. The following table shows the results of the refer- enda hv States: Total Ninnhcr of Eliffihh' Ilrf('re)ifli(m Eligible ''Yes" ' Co/c/.s- and State Voters Votes N ot Votiiifj Bui It'll* : Kentucky 114,103 72,063 38,164 Tennessee 45,624 22,898 20,715 Ohio 6,653 3,332 2,811 Indiana • • • ■ ■ • • • * • • • Missouri 1,595 647 822 West Virginia .... 2,916 1,726 810 Virginia 9,015 5,578 2,863 Nortli Carolina . . . 7,731 3,687 3,719 Kansas 77 50 18 Total..'. 187,714 109,981 69,922 Fin Cured: Kentucky 24,199 14,137 8,906 Tennessee 15,978 8,959 6,061 Virginia 11,947 52,124 7,263 4,160 Total 30,359 19,127 Darh Air-Cured: Kentucky 14,315 10,334 3,353 Tennessee 1,970 876 943 Virginia 2,022 1,075 770 Total 18,307 12,285 5,t^ Cifjar Leaf: Pennsylvania 6,257 4,756 1,044 New York 421 361 30 Ohio 6,060 2,360 3.482 Indiana 44 * 37 6 Connecticut . 2,418 2,050 '^m Massachusetts .. . . 1,185 803 354 New Hampshire . 29 18 10 Vermont 25 24 • • • • Wisconsin . 10,202 8,119 1,707 Minnesota 623 538 65 Total 27,264 19,066 •No rei)ort has been received for Indiana. 7,0^ NOBILI CO. SUES T!^ RESTRAIN AAA HE Nobili Cigar Company of 35-11 Ninth Street, Long Island City, Queens, N. Y., has tiled suit attacking the Federal processing tax in Federal Court, Brooklyn. The complaint holds the tax an invalid means to accomplish an illegal end. The complaint shows the company manufactures cigars from tobacco on which it should pay a tax up to three cents a pound. The company tiled a return July 3l8t for $4529.81, which it has not paid. * The ta.x is illegal, the complainant holds, because it works a hardship on the company in that the com- pany must absorb the tax, which cannot be added to the price of cigars. This has increased the cost of doing business. The company holds the tax is imposed without regard for the formula prescribed by the AAA and is unconstitutional in violating the Fifth Amendment to the Constitution. Cigars and Cigarettes Up in July \U\ followmg- coiiipnrativo data <>t' tax-paid l)r(Hlucts, indicated by the monthly sales of stamps, an' i>>ned by the Buivau. (Fiuurcs tor duly, 19:'..'), aiv snl>.i(H't to revision until i>ul.- libhed in the annual leixnt.) — Jiihf — Pnulurfs i!»-i^ " J^^-'^ C'iuars (laruf) : ^ .. ^- -,w. /..... ('la.< \ Xo. :?79,S71,S40 .32.),.j99,6()() Cla- B " Xo. (;,s:)!>.7:J:5 4,4()3,39:5 ( i-j:. ( ' Xo. 41,:)4(;,922 44,82.V)9U ci-i.. 1) X(». :u;24,ui:) 2,87(;,o()S da.. K Xo. 2o(i,24;{ 290,873 T(»tal 432,158,753 378,055,584 ('ioar> (>mall) Xo. l(U2<;.3(;o 13,-1/1,^20 Ciuaielt... (larue)....Xo. 217,292 22(;,05t) ('ioarette> (small) . . . Xo. 13,138,2s7,4<;3 11,355.398,SM) Smitr. uifd ....Lh^. 2.«;o7,211 ^^]'p^^ Tobaeco, mid ld»s. 2<;.45s,SlO 2.),!ni,0l.» Tax-])aid lu-odiiets from Pueitn ITu-o (not ineluded in ab.tvi^ statement) were as follows: —July — r,a,lnrts Iff-'-'' ^ 1^^^ Ciiiars (la rue) : . - - ,. Class A Xo. 7,514,275 <.,.)8/,9(Ki Cla«^s B Xo. :io(MMMi 203,050 Class C Xo. 30,850 45,050 (%ss D Xo. • •■••• 50(1 Total Ci.4J:ais (snudl) X(). Ciirarette> ( laru-e). • • • X^o. Ciuarettes { snudl)... .Xo. Tax-paid products from the Philippines (not in- cluded in above statement) were a> fcdlows: —,fuhf— Vr C ... Xo. Clas. I) ... Xo. Clas^ K ... Xo. 1931 1934 15,687,015 16,307,220 14,177 27,580 11,962 11,600 50 30 ft « * • Total Cigarettes (snudl). . . .Xo. Tobacco, mfd Ll>-. 15,713,254 10,346,400 39,1(MI 12(U>f» 8 JULY CIGAR WITHDRAWALS 1920 TO 1933, INCLUSIVE INTERNAL REVENUE COLLECTIONS FOR JULY (^io-ars $1,088,(561.87 $9(;(;,30().42 Cir.arettes 39,41 (5,581. {)9 34,0()8,.307.26 SiHiir 4(59,297.96 499,318.05 Tobacco, chewinu and sniokin- 4,763,878.39 4,667,348.74 Ciuarette iiapors and miH.s 72,1(51.44 120,878.96 Miseellaneous, relatinir to tobacco •>;^.^<' -i^l-^^ 192(». 1921. 1922 1926 8 678,751,956 1927.. 564,604,797 192H.. 585,874,114 1929.. 589,176,020 1930.. 595,063,302 1931.. 575,822,936 1932.. 568,553,475 1933.. 5()1,199,298 558,205,683 589,282,068 532,805,120 47«,9(X),849 361,240,267 4(K),511,453 AGRICULTURAL ADJUSTMENT TAXES AND TOBACCO SALES TAX -,/»///- Tobacco (tax effective Oetober 1, 193:5): Pr(K-essin- tax $2,00(5,971.21 Import compensat- inu- taxes i:;,!>(52.7() Floor taxes 4,i>2(5.(55 Total, tobacco.. $2,025,8(50.56 Tobaeco sale tax $1,959.97 I'.Kti ^2,3,58,1(51.25 40,888.80 4,764.60 $2,403,814.65 • • • • 7,851,125 6,836,500 m 850,(HM) 2( »,( M M » .3.50,0arre district. Members of the association have places of business in Wilkes-Barre, Xanticoke, Forty Fort, Kingston, Rwoy.rsville, Plymouth and Pittston, the commission saul. LA AZORA CIGARS ARE TWO YEARS OLD August 15th was the second birthday of La Azora cigars. Considering the reports on sales coming from every section of the country, this is indeed a promising youngster of the O. H. P. Cigar Co.'s family. Tkt Tebaceo WoHd September t. to^3 II AND DILL'S BEST AND NOW ON Columbia Broadcasting System Coast-to-Coast • Monday Nights See yout local Monday •venmo ptograin lijlingi MODEL TOBACCOS U. S. Cigars Up 117 Millions in 7 Months First 7 3/o.s\ C€l^. Year 1935 — Decrease + hi crease Quaittity Cigars : ^ ntited States . . 2,323,500,030 + 168,043,140 Puerto Rico .... 31,373,980 - ^62,340 Philippine Is. .. 116,031,085 — 12,301,420 Total 2,470,914,095 + 154,979,380 Class B— United States . . Puerto Rico Philippine Is. . . Total Class C— United States .. Puerto Rico Philippine Is. . . Total "United States . . Puerto Rico Philippine Is. . . 36,082,066 + 1,097,35(J -h 227,097 — 10,448,9^)0 258,900 27,310 37,406,513 + 10,680,580 ^5,759,530 260,850 87,648 236,108,028 18,893,864 1,077 59,987,906 140,300 4,914 60,133,120 1,241,776 1,500 173 Total • • « • 18,894,941 — 1,243,449 Class E— United State^^ . . Puerto Rico Philippine Is. . . 1,726,963 4- 540 — 14,205 • • • 215 #•••••*• Total • • • • 1,727,503 + \%fim Total All Classes: United States Puerto Rico . Philippine Is. Grand Total 2,615,971,453 + 32,732,180 — 116,347,447 — 117,276,653 645,240 12,334,032 2,765,051,080 -f 104,297,381 Little Cigars: United States Puerto Rico . Philippine Is. 108,411,574 — 27,105,079 2,450,000 -h 950,000 Total 110,861,574 26,155,079 Cigarettes: United States Puerto Rico . Philippine Is. . . 78,505,857,210 + 4,653,591,480 1,782,0(K) — 632,250 927,150 - 521,370 Total 78,508,566,360 + 4,652,437,860 Large Cigarettes: United States Puerto Rico . Philippine Is. Total . . . Snuflf (lbs.)— All U. S Tobacco (mfd.) — United States Philippine Is. Total ... 1,396,776 — 180,000 — 5,900 H- 1,582,676 85,772,212 160,(K)0 5,700 85,926,512 21,327,867 — 1,155,047 3 4,515,8CT 20 178,103,053 — 4,515,887 FRANK SWIC« AOAIK BEEEAVED The manv friends of l^^ank Swick, of Simpson, Studwell & Swick, Ltd., were shocked to learn of the sudden demise of his only daughter, Mrs. Jerome Brad%% on Thursday, August 8th , ^ ^ . . . ,, two weeks previously Mrs. Brady had given birth to a baby boy, and mother and son were thought to be progressing satisfactorily. .. ^ , ^ ^u Funeral services were held on August 11th at the Swick residence, 74 Central Avenue, Maywood, X. J. Mr. Swick's wife passed away last May, and his present loss has elicited many sincere expressions of sjTDpathy. News From Congress ^ 'AND Ft b E R A L Departments KJXlXd of \\w Social Security IVill bv Presi- dent Hooscvclt last month si't in motion nia- ehincrv l»v which within the next few vcars the bnlk of the waue earners of the country wil! bo assured against povi-rty l)ecausi' of unemployment or old age, l)Ut which will mean to a large pait of the to- bacco industry eventually a tax of 6 jier cent, on its pay- rolls plus a(hlitional taxes which may be imi)osed by States setting up complementary systems. The legislation ju-ovides a Federal-State systi'm of unemployment insurance, to l)e financed in pait by em- ployers. After .January 1st, next, employers of eight or more persons — or fewer if determined by the States — will be assessed a tax of 1 per cent, on their payroll, to be increased to 2 per cent, tin' following year, and to its maxinumi of .> i)er cent, in VX]H. Where State icovernments set up unemployment insurance systems to which employers must contiibute, the lattei- will be given a credit of up to 90 per cent, of the amounts so paid when makinu returns to the Federal (lovernment. The act also provides an old-ai«:e pension system to be financed, in part, by both emjjloyers and em- ]>loyees by means of taxe-. The lax rate for each will be 1 per cent, in 1!K»7, when the >ysti'm will start, in- creasing one-half of 1 per cent, eveiy three years until it reaches its maximum of ."» per cent, in 1949. FiUi- ployers will bo required to deduct the employees' taxes from their wages. Benefits under th»' old-age insurance wil! begin at the age of 65 and will d«'pend upon the total amount received for employment i)etween the inauguration of the plan and rotiroment, and will range from $17.50 ]>cr month for a person receiving an average wage of !|s)0 jier month over a iieriod of ten years to $81.25 for one receiving an average of $250 per month over a period of forty years. Ctj Ct3 CS3 AILURB of Congress to enact legislation broadening the scope of the Federal Trade Uominission Act, according to reports to Wash- ington, is influencing a luunbor of the more im|>ortant industries to ijostpone the negotiation of trade agreements until Uongress has an opportunity to act next session. Under the law as nt»w written, it is contended, the t'onmiission is without power to approve provisions of major importance in the voluntary agreements which are designed to take the place of the invalidated recov- ery codes, among them mininmm wages and maximum Seplimbtr i, tgsS hours, although such lules may he included in (iroup II, observance of which is purely voluntary. Tliei'o are also a number of other ])rovisions which many (tf the industries would like to see included in any trade agreements they may negotiate but which it is l)elieve(l the ( 'ommission could not approve under ({roup I, the rules which it can enforce at law. I)ecause of the fact that any trade agreement now nogr)tiated wou'd be so limiteosti>one negotiations in the hope that early next -.--ion Conuress will i)ass new legislation thor- oughly levising the Trade Connnission Act. The ]>i-eseid l)elief of industry that little can be gainetl by adopting tiade au:reements is seen in the experience of the ('onniii-een •clven funds to initiate a number of studies, among them an analysis of some 5,(MHVK)0 personal re- turnsof income not exceeding $r»not) ajid some 500,000 partnership re]>orts. On the ba>i- of the infornuition gathered in these and other studies, the department, for the first tiine, will have available detailed data regarding national m- conie, the operation of the profit and loss provisions, partnorshii) operations, distribution of Government securities and the like, which it is believed will enable the drafting of a really scientific, «M|uitable tax bill when the sul).ject again is considered l)y Congress. (Consideration of the revenue measure recently en- acted bv t/ongress demonstrated the lack of detailed information of the important point- on which such leg- islation is based and the need for better data than is now available. it Rules for Tobacco Distributors (CoiitiHHi'l From Viuje l) No one can question the reasonal)leness and .lustioe of assurinu' to eaeh (.f your exelusive territorial dis- trilmtors tlie justly merited fruits of his t«ul and en- deavors in ai'diuu* the deveUipnient of y«uir brands. You yourself eontirnied your distributors' just elanns to jtroteetion when vou.uave him an exelusive fran- chise. This riiiht was also uiven full reciM^intum by the (Jovernment of the United States when in the code of fair competition for the wholesale tobacco trade a provision was incorporated prohibitinii the sale of an exclusive ])roduct by any other agency within the ter- ritorv of an exclusive distributor. At present, we are confr(»nted with two agency operators who do not conform with this sound and honest relationshij) between the manufacturer and his desiunated distrilmtor. The United Uigar Stores are sui)plying I nded airencies with cigars, in territories entrusted to ac- credited job])ers. The National Cigar Stands are pursuing the same policy in supi)lying controlled luerchandise, to the Rexall Stores. A large number of our members are very much concerned with these unfair practices. I am sending this letter to the outstanlease write me at y(»ur convenience, sig- nifving vour support of this obligation to your cus- tomer! The above letter was addressed — on July 2d — to a number of leading cigar manufacturers— among whom are included the following: American Ciirar Co.. Ill Fifth Avenue, New York Uitv. American Tobacco Co., Ill Fifth Avenue, New York City. ^ , . Bayuk Cigars, Inc., Ninth Street and Colmnbia Avenue, Philadelphia, I*a. Congress Cigar Co., 744 Broatl Street, Newark, N. J. Consolidated Cigar Co., Fifth Avi-nut- and Fitty- seventh Street, New York City. Deisel-Wemnier-Gilhert, Corp., Detroit, Mich. G. H. P. Cigar < o., rhiladeljihia. Pa. General Ci^ar Co., 110 W. Fortieth Street. N«'w York Citv. Julius Klorfein, Inc., 141 Fifth Avenue, New \ork City. I. Lewis Ciirar .Mftr. Co., Ni'wark, N. d. P. Lorillard Co., 11<» W. Fortieth Street, New York Citv. * M & N Ci|?ar Mfg. Co., Inc., Cleveland, Ohio. E. Popper k Co., 40 East End Avenue, New Yoik City. E. Regensburg & Sons, 411 Fifth Avemns N, Zimmer, 28,.)r2,; Type 4(5, Puerto K'ican, 20,4!MMH)() jjounds. The detailed re- port bv trroups of grades shows about 7.') per cent, ot the total filler type stocks in the C group as strictly tiller grades and about 22 per ct'iit. in the X group as stemming grades. The total cigar binder tyix- stix-ks ^how a decrease fnun April 1st to .luly 1st this year of more than 10 million pounds, whereiis this chiss of tobacco normally .shows an increase in the second quarter. Cigar binder type stocks totaled 1SL96H,(HM) poumls on duly 1, 1935, about \>> milli(ui pounds h^wer than a year ago. Tyi)e .')!, Conni' pounds; Tvp*' .')4, So'utheni Wisconsin, 7 1,: i<),r)ri7,nounds of Connecticut Shade and 2,54rMMM) ])ounds of Georgia and Florida Shade. Of the total Shade stocks report^, 8,67H,(MM) pounds were reported in the A group as being of actual wrapper quality. Foreign-grown cigar-leaf tobacco stocks were re- ported as l(),r)9f),0(M) poimds on duly 1, 1935. Tk* Tobaeeo WofU STOCKS OF LEAF TOBACCO OWNED BY MANU- FACTURERS AND DEALERS JULY 1, 1935 TOCKS of leaf tobacco in tlie rnite'>7,0()() pounds on duly 1, 1934, a decrease of r)2,!>lf),()(M) pounds. From Aj.ril 1, 1935, to July 1, 1935, total stocks decreased 187,152,000 ])Ounds. During tlie same j)eriotl of 1!>34 the decrease amounted to 220,957,000 pmiiids. Stocks of flue-cured tobacco on band July 1, 1935, were ()41, 840,000 ])oun4. Tyiie 11 stocks were reported as 300,.327,000 pounds (U» July 1, 1935; Tvi)e 12 as 207,4!n,0O0 pounds; Type 1:5 as !>7,475,000 pounds; Type 14 as 3,«;,547,(M)o poun35, compan'd with 21b,<)74,0(M) ])ounds on July 1, 1!J:>4. Total fire-cured stocks were about 14' j million pounds lower than thev were a vear ago ami about tlu' sann* as thev were 35, al>out 4 million poiimls under the Ajjiil 1 stocks. Type 22 stocks, repoited as 155,708,000 pounds, were about b million pounds higher than on April 1st. This in- crease in Ty])e 22 iluring this perioounds and Type 24 as :i,785,(MM) pounds, both slightly lower than on .\pril 1st of this year. Stocks of all ty|>es of tire-curetl excejit Type 22 were lower than they were a year ago .July 1st. l^urley stocks were about 38 million pounds lower on July 1, 1I>.'>5, than they were on duly 1, IIK'4. The July 1, 1935, report shows 725,841,(M)0 pcuinds on hand. The decrea.se wer than a year ago. The decrease for the ipiarter was practically the same as last year. tJreeii Kiver stocks, reported m 33,:W3,(MK) pound.-, Ui-re 2,342,,rKK) pounds, and foreign grown other than cigardeaf. Type 90, which is principally the Turkish type cigarette to- Imcco, was repcuted as 7(J,172,0ration, has, foHowing a mutdi needed rest, joined the I*rogress Cigar Company, Thirteenth and Lombard Streets, and will cover his old territory in the interest of their brands, beginning Hept ember Gth. September t, lyjs -\ THE FRIEND A DEALER NEEDS IN A 15c TOBACCO No fine pipe mixture has ever enjoyed the instant success that Briggs has achieved. Wherever pipe fans gather, the talk today is of Briggs. Smokers of premium priced brands prefer it to their former expensive blends. Old time "15< tobacco" experts fmd in Briggs a sense of complete satisfaction that is new in their ex* perience. Dealers find in Briggs a friend they need be- cause its retail price is protected and full profit is assured. For proof ..ask your jobber which 15^ tobacco has doubled and trebled in sales and his answer will be "Briggs Pipe Mixture." P. LORILLARD CO., INC. Esfobfished \760 II* WIST 40TN STRUT • NIW YORK CITT Tune in.. Briggs "Sports Review of the Air" .. Featuring Thornton Fisher . . N.B.C. Red Network . . Saturday Evenings TOBACCO TRADE ORGANIZATIONS TOBAOX) MERCHANTS ASSOCIATION OF UNITED STATES i' <^^ ESSE A. BLOai. UTjeeliof, W. V» Prcaident ULIUS LICHTENSTTEIN. New York, N. Y Vice- President ILLIAM BEST. New York. N. Y Cbatrmaa Executive Coramitte« ma;. GEORGE W. HILL, New York, N. Y Vice Preiident GEORGE H. HUMMELL. New York. N. Y Vice-Preiident H. H. SIIELTON. W.ihington. D. C Vice-Pretident WILLIAM T. REED. Richmond. V« Vice-Preaideat HARVEY L. HIRST. PhiUdelpkia, P« Vice-President ASA LEMLEIN. New York, N. Y Trcnrarm CHARLES PUSH KIND. New York. N. Y Counsel and lfan»finc Director Headquarters. 141 Madison Ave.. New York City RETAIL TOBACCO DEALERS OF AMERICA, INC. WILLIAM A. HOLLINGSWORTH, 2M Broadwar New York, N. Y President CLIFFORD N. DAWSON. Buffalo. N. Y Exeeattve Vice President JAMES C. THOMPSON, Oiicafo. Ill Treasurer ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS JOHN H. DUYS, Kew York Citjr President IILTON RANCK, Uncaster. Pa First Vice-President D. EMIL KLEIN. New York City Second Vice-President IMM SAMUELS. New York City SecreUry-Trensww NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN. 110 Grumman Ave.. Newark, N. T. ALBERT FREEMAN. New York, N, Y IRVEN M. MOSS. Trenton. N. I A. STERNBERG. Newark, N. J Preaidcal ...First Vice-President .Second Vice-President Secretary RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA MORRIS LEVITONE President SAMUEL MAGID. 2U01 N. Mervinc St., Philadelphia. Pa S^retary THE NATIONAL ASSOCIATIONS OF TOBACCO DISTRIBUTORS, INC. E. ASBURY DAVIS. Baltimore, Md PresidcC JOSEPH KOLODNY, 200 Fifth Ave., New York. N. Y SecrcUry GEO. B. SCRAMBUNG, Oeveland. Ohio Treasurer UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION President Secretary 'J JOHN F. BROWN HERMAN H. YAFFE, Wk Fern Building. Philadelphia. Pa. SK PI EMBER 15, 1935 Eaiablithed 1886 (t BEST OF THE BEST 99 ^^^^^±^ A. SANTAELLA & CO. Office, 1181 Broadway. New York City FACTORIES: Tampa and Keg West. Florida OUR HIGH-GEADE NON-EVAPOIATINO CIGAR FLAVORS ^ . . u . Make tobacco meUow and smooth In cbaractas and Impart a most palatable flavor rUYORS FOR SMOKING and CHEWING TOBACCO Write for List of Flavors for Special Brands BKTUN. AIOMATIZEE. BOX FLAVOBS. PASTE SWEETENBBS FRIES A BRO., 92 Reade Street, New York ys^^KjmmjmjmmnMM Classified Column The •■•te lot this column is three cents (3c.) a word, with a minimum charge of seventy-five cents (75c ) payable strictly in advance. '•^1r«(r«(tl*lt?t(t«(t«^ «(^/iC^>^t/■•^1.vrr<•^..'*^■ POSITION WANTED CIGAR SALESMAN COVERING EASTERN PENNSYLVA- NIA and Local Territory desires connection. Large following. Address Box No. 580. "The Tobacco World." CIGAR FOREMAN HAVING o YEARS' EXPERIENCE ON Automatic Machines^, wants position. -M-o ifi-tructs beginners. Address Box No. 582, "The Tobacco World." VENDING MACHINES ADVANCE CIGARETTE MACHINES $19.50 m^ EOWE 6 Column Cigarette & Match \'cndors $38.50 each. Peanut Ma- chines, Amusement Pin Tables, Electric Cranes at low prices. NATIONAL, 2401-15 Chestnut Street, Philadelphia, Pa. CIGAR FACTORY FOR SALE OHIO CIGAR FACTORY EST. 1860, FIRM RETIRING. Brands are all modern, well advertised in local market and produc- tion now about ten thousand per day — capacity forty thousand. We have discounted all our bills to date and we are willing to sell at a very reasonable price. Address Box No. 581 — The Tobacco World. HAVANA CIGARS BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT LOVE — Adopt as your slogan, "Kisi your beer, but love your ci- «•«■*•" Specially those Havana blended, "Good to the last Puff," manufactured by A. Ramirez & Co., Pent Office Eta 1168, Tampa, Via. Write them for particulars today. Tobacco Merchants' Association Registration Bureau, 'NlV'^YoSrcm Schedule of Rates for Trade-lfark Serviees 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 wUl be made to members of tbe Tobacco Mer- chants' Aatociation on each registration. Note B— If a report on a search of a title neeessiutcs the reportinc of aiOTO than ten (10) titles, bat less than twentr-one (M), an additional eh»r|« of 0«e Dollar ($1.00) will be made. If it necessiutes the reportint of more than twoaty (20) titles, but less than thirty-one (31), an additional charge of Two Dellara ($2.00) will be made and so an additional charge of One Dollar ($1.00) will k« made for every ten (10) additional titles necessarily reported. REGISTRATIONS DON ALVARY :— 46,473. lor cifiars, cigarettes and tobacco. Chicago Ci.uar I'.ox Co., Chicago, 111., June 10, 1935. TRANSFERS FEDERAL:— 135,269 ( T. .^. Patent Office). For cigarettes, little cigars and Miioking tobacco. Regi«.tered «)n September 28, 1920, by Estate of 1. P.. Krin>-ky. Inc.. New York. X. Y., and transferred to I'.ureka Tol)acco C«>.. Inc.. New York. X. Y., July 23, 1935. FLOR DE ALVARY:— 17.400 d". S. Tobacco Journal), and 10,327 ( Tohavco Peal). I- or cigars. Registered May 27, 1895, by F. Hep- penheimer's Son<. New York. X. Y. Transferred by Consolidated Litho. Corp., Hrooklyn. X. Y.. successor to the registrants, to Chicago Cigar Box Co., Chicag(\ 111., .\ugust 2, 1935. ARTOLA:— 30,838 (Tobacco World). lM>r cigars, cigarettes, che- r(Mit>, stogio. chewing and smoking tobacco. Registered March 27, Pn5. hv Pasbach-Wiue Pitho. Co., Xew York. X. Y. Trans- ferred to Central Cigar Co.. Detroit, Mich., and re-transferred to 1). Kmil Klein Co.. Inc., Xew York, X. Y.. .August 14, 1935. NEW REGULATIONS ON CIGARETTE STABIPS KW rt'irulatioiis |u:oveniiiiK tlio use of IVnn.syl- vaiiia State ciiraii'tte ta.x .stamps have just Keen made i>uhlic, which provide that on and after Sei)teml)er ir)th all such stami>s must be cancelled before beini^ affi.xed to cij^arette packages by placiiie affixed to the top edire of the packaar© so that when the packaire is oiiened the stamp will be (h'stroyetl, except in the case of cylindrical packauo, in which case the .^tamp shall be placed on the top lid. The new reirulations were issued Iwcause of evi- dence that used stamps were lM»in«r salvaired i^d re- used. &nd Two Dollars, with the coupon below to The Tobacco World, 236 Chestnut St., Phila., Pa., and get your copy twice a month for a year. Name. Street No. P.O.- J&iUe- COMMON SENSE The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the new improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and invitmg package may obtain HILA.. PA, THE TOBACCO WORLD Vol. 55 SEPTEMBER 15. 1935 No. l8 FAMOUS ATHitTIS APPROVE CAMttS, SO THEY MUST HAVI REAL MILDNESS. THEY ARE OENTLE TO MY THROAT AND WHEN IM TIRED ( GET A LIFT' WITH A camel! I CAMELS DO NOT FRAZZLC MY NERVES OR UPSET MY CONDITION AND THAT CAMEL TASTI IS JUST WHAT I WANT .. MILDNESS COUPLED WITH FULL, RICH FLAVOR! • What Big Bill 1 lidm %ays about C aim Is is unrtli an\ sniokir'saiti ntMUi IM jMit tokutp intipiuppin s- i(.al ttindiiion. ias s * J-\tar-tilU' Iron Mm ol T t nnis I smokfCamtb.thc mild tigarcttc.l lu > dttu i m i in\ \\ itnl ttr iipstt n\\ fn.T%cs. I \ I siiuiki d ( atm Is ii>r s i ars. atui I iiLNi r tir*. «)! till ir -; I "th. rii h last ur ttrnnis sf ! - ^ ' itt Barni - ■■ ... i ■■ ^ !••■ So lurii - aiiikls. "i . ,,kc ihtif I WHEN YOU KEEP FIT'. \ SO YOU SEE WHY I, TOO SMOKE CAMELS . I'vE SMOKED THEM FOR ACES AND NO MATTER HOW MANY I SMOKE. THIY OONT AFFECT MY WIND COSfllER TOBACCOS! Canitis arc made tiiHti finer. MOHt IXFtNsIM H>HA<«t>s —Turkish ami Dorntsiii — than am utlur j .ipular hraml. I Ixl 1 i iH \( < ( i ( II I FOLLOW TILDEN SARAZCN, CEHRiO AND THE OTHIR SPORTS STARS IN SMOKING CAMELS. I SMOKE CAMELS STEADILY TMIY NEVER GET MY WIND njH I^ CAN'T help thinkinp: about tlioso cip^arottc 3^^| protliK'tioii fiijurt's wo juintiMl in tho last issue. The notion persists that we did not make enouji:h fuss over the fact that July, 1935, es- tablished an all-time hi.u:h. Thirteen billion, l.')H mil- lion, 50f] thousand, .jfJ.'J! That's a mountain of ciiifa- rettes, and it will take a vast multitude of people to smoke them. Let's see. The offiee slide rule reveals that that many eii»arettes in a month amount to 423 million, 824,72S (•ii«:arettes in a day. Omittini^ ciufht hours for sleep, it means 26 million, 489 thousand, t)4r) eij^arettes i)er minute. Finally, it means that every second of every wakinjij day in tlu' month 7,.'>5H persons light a ciaid, "Xeighbor, what is the best way to get to ( 'incinnati f" lie said, "Well, you just go right on up the road, and you come to the forks in the road.** Then he thought awhile and he saitions, of course. We were reading the other day an editorial in the /r/.s7; Trthaeco Trade Journal, beg- ging tobacconists to take advantage of the increasing tourist trade to the Hmerahl Isle. "Notwithstanding idl the talk about depression and the shortage of money," the editorial iM-gan, "Ireland appears to be gaining in po|>uIarity, a- year follows year, as a pleas- ure lesort. We ar«' gaining many tourists, especially from Great Britain and the United States, and there is no doubt that we could gain many more than we have if we improved our services, especially our hotel services. Tobacconists, in common with many traders, and more so than some, stand to iirofit considerablv bv the influx of visitors and for that reason especially we have fre- quently urged them to give every support to the tourist development trafiic. Alert tobacconists make a special study of tlieir holiday trade and they ar# thus able to make adetjuate provision for it. There is more demand for special lines on the part of many visitors — espe- cially on the part of imr American friends who still cling to the cigar in preference In the pipe or cigar- i tte, ' * ( The italica are ours. ) Th« TOBACCO WORLD (established 1881) is published by Tobacco World Corporation: Hobart B. Hankins, President and Treasurer; Gerald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- able only to those engaged in the tobacco industry, $2.00 a year 20 cent* a copy; foreign, $3.50 a year. Entered as second-class mail matter. December 22, 1909. at the Post Office, Philadelphia, Pa., under the Act ^ March 3, 1879. FRANK FRISHMUTH DIES IN FALL RANK B. FRTSllMlTll, Mt^ll known to the ''old-tiniors" in \\ie tobacco industry as a nioni- 1)01- of the fonncr tobacco niannl'acturing firm of Frishnmth Bro. & Co., at Seventeenth and Lelii-h Avenue, was killed early on Tuesday niornin.ir when he pinniped from his fifteenth-lloor room in the Hahnemann Hospital where he had been a private pa- tient for more than two years. Mr Frishmuth retired from active business many veari ai-o, when the firm of Frishmuth Bro. & Co. was placed in the hands of receivers in February, 19*J.i The firm was established in 182.") and was one ot the oldest tobacco manufacturinu: firms in the country, manufac- turins? smokimr and chewinir tobacco. In the early davs of the companv it was located at l.)l North Third Street and later moved to Seventeenth and Lehigh Ave- nue A few vears ])rior to its receivership it acquired the Lowell-Buffinirton T<»bacco Co., (»f (^)vintiton, Ky., and at that time manufactured about 2,lMH),(MH) pounds of smoking tobacco marketed under many i>rominent brand names at that time, and also produced several millions of cigarettes annually. Mr. Frishmuth had been a member of the Union League for more than forty years and made his resi- dence there until about two years ago, when he re- signed from the club and became a patient in the Hahnemann Hospital undergoing treatment for a heart ailment. He is survived bv two daughters, Mrs. Lewis Jones, of Overbrook, and Miss Harriet Whitney Frishmuth, well-known sculptress, of New Y(»rk City and Lake Placid. He was eighty-six years old. LORILLARD FEATURING OLD-TIME ADS PROGRAM FAVORED FOR FOUR KINDS TO- BACCO BY GROWERS' REPRESENTATIVES T a hearing held in Washington September 3d on a proposed adjustment jirogram for Burley, Maryland, fire-cured and dark air-cured to- baccos, representatives of producers of these types of tobacco voiced unanimous approval of the con- tinuation of an adjustment program. Evidence was submitted by the tobacco section of the Agricultural Adjustment* Administration, upon which the Secretary of Agriculture inay determine whether the current average tol)ac<*o prices are less or likelv to be less than the fair exchange value and whether the continuation of the tobacco programs would tend to carry out the declared policy of the Agri- cultural Adju.stment Act by increasing the income of the tobacco producers. Figures submitted by representatives of the to- bacco section, showed the following relationship be- tween prices of the various types of tobacco in 1934 as compared with the fair exchange value : Fair Exchange 1934 Prices 16.9 cents a pound 18.00 cents a pound Type Burley Maryland ft' Dark air- cured Fire-cured Value 17.5 cents a pound 18.1 cents a pound 7.6 cents a pound 10.8 cents a pound 8.8 cents a pound 10.7 cents a pound riA ^C^^r^' Common f<<"»*>'"'6'"' M.cc-h* IB"". Commoo'N'f"^''- ., Scotch do- il."^':t,t Tobacco .«- ■>"'t''.-t^— " rn „o, a.>"'t*^- , J»o«.«« "'" *^ "^^i.. .T— >" - HE p. LORTLLAKI) COMPAXV, in its recent rnion Leader copy for its magazine advertis- ing has been featuring material used in some of the lirst advertisements of the founders of the firm, back in the ITHO's. As pictured al)ove, it is Vieing used in two-column magazine space as a repro- duction of the !*eter and (Jeorge Lorillard a4, which amounted to 2,020,991^561 francs. (Vice fonsul Davis H. Levis.) Mannie Perez was in town last week introducing two new products of hi^> company: Marcelino Whiffs, retailiiiL'^ at ten for fifteen cents, and H<*dencion Pets, retailing at five for jiflei-n cents. These new products are just what the cigar smokers have been waiting for. 'J'hey till the bill most satisfactorily for the man who only has an opportunity for a few **whilTs'* at various times during the day's routine. As shown by tin' al)ove, the 19.34 price of Burley tobac<'o wa^ .«> cent a pound l)elow the fair exchange value while the Maryland tobacco WM .1 cent a pound below and the dark air-cured was IJ wnts a pound be- low. Even though the 19.34 price of fire-cured tobacc^ was .1 cent a pountl al>o%e the fair exchange value, it was pointi»d out that the price for the 19,36 crop would likely be Ik'Iow the fair exchange value if a production control program is not continued. (lovernment tobacco pfK'cialista stated further that if a production control program is not continued the prices of other tyijes of tobacco would likely be tui ther ^low the fair exchange value than they are at jirescnt. Tkt Toboteo W^rU The New AAA Amendments FSPITF vigorous protc'st by interested parties concerned, the inoposed amendments to the Agricultural Adjustment Act wen- iiiially passed on August 24, 1 !>.'>.'). .\ccoi"ding to in- formation released bv the Agricultural Adjustment Administi'ation, the recently jiassed amendments have two purposes: To insure the constitutionality of the Agricultural Adjustment Act in tin* light of Supreme Court decisions, and to strengthen, clarify, and correct the legislation authorizing the farm piogram in the light of the exi)erience gained since its inception. CS3 Ct3 Cj3 () IXSl'HK the constitutionality of the act three thinus are «l somewhat i>y adding mortgage interest rates and tax rates as t'actors in <*omputing this price. In connection with basic commodities, payments are au- thorized for other i»ur|K>ses than r<'ntal or benefit pay- ments, namely, for: Removal of surpluses; rxpanding domestic or foreign markets, and product i<»n under a domestic allotment. Ta.x rates an«l tax procetlure are set forth in greater detail, with three objects: insuring flexibilitv si> that rates mav be adjusted to fit market condition.**; smoother operation, and s|>ecifying the pro- cedure for refund and recovery of taxes. The ever- normal plan for storage of certain crops on the farm, as insurance against shortages and violent j>rice swings, is incori>orated in the farm program; provision is made for control of eompeting imports when they jeopardize the suc^ss of a program. tj) CJ3 Cj3 N THF provisions for protection of the c(ui- sumers' interest. It is speciflod that nothing in the act shall hv interpreted as authorizing maintenance of prices above parity levels. Miscellaneous prtivisions in the amendments cover the Sfftemhtr i$, i^SS encouragement of jiroducer co-operatives; appropria- tion of funds to carry out existing options for purchase of sub marginal lands, and api)ropriations of 30 per cent, of the annual receipts from customs duties, to stinmlate agricultural exjxirts and domestic consump- tion and to finance i>roduction adjustments. ^hO.^ ^kO^« BM^&^B CJ3 CS3 Cp HK IXSIDF story of the fight to pass this legis- lation, of course, has not and may never be made public, but it is assumed, with some de- gree of confidence, that theic was much swap- l»ing of votes and considerable pressure brought to beai" from seveial o aptly stated by one noted political observers "Once a President takes that responsibility, he is cer- tain to be obliged to lobby, to make promises, and in the end to be subject to demand for yet more conces- sions." PHILIPPINE TOBACCO MARKET, JULY 1935 The Philippine tobacco market is reported as quiet in July, buyers and sellers waiting for better prices l^fore making any commitments. The Cagayan Isa- Imlm crop is estimated at less than 50 per cent, of the average. Leaf exports for the month were heavy, total- ing 1,243,(KH) kilos, including Belgium 19,000, China 12,- (MM), France :n,(HK), the Netherlands 16,(KK>, Hong Kong mMK), Northern Africa 27r),000, Spain 772,000, and the Dnited States 111,000. (*igar exports to the United States are estimated at 16,500,(); to other countries mXl,OtR). (Richards, by Radio.) Liggett & Myers Announce Return of Brilliant Serial on Radio KTlliX of the t'lu'sU'ilk'lil peril's, for Ihreo years a i)acc'-setlei- in \hA\i jtoimlar ami concert eiitertaiimient, was aiiiioiinced this week by the (\)liiiiihia IJroatk-astiiiu- System. Tlie proi^a-aiu ^vill i)reseii.t Lily Pons ami Nino Martini, two of the ]>riu:htest star> of the Metro])olitan Opera ( 'oniimiiy ami the international concert liekl, in alternate recitals with the ijopular conceit orchestra and vocal ensemble of Andre Kostelanetz. It was al>o annonnced that Pavid Koss, for years an oiitstandinu' annonncer for the Cohnnbia network and winner of the diction medal of the American Acad- emy of Arts and Letters, has been enuaued exclnsively for the new C'hesterlield series. The in.T) fall series, c.ne of the ma.j<»r radio events of the vear. will be oiH'neil l>y Mi>s I*ons with Kos- telanetz on Wednesdav. Oetnlu'r '2il in a half hour's popular concert from !♦ t(> ;»::5(> 1'. M., K. S. T. Martini will have his ])remiere on Saturday. October oth, at the same time. The l/hesterlieid stars will perform on the same scheduk' each week thereafter. The renowned artists return to radio after winninir new laurels in moti(m jjictuie antl other lields. Miss Pons, generally acclaimed as the worhl's lea0 P. M., E. D. S. T., under the spousorshii) of the Consolidated Cigar Corp., manufacturers of Harvester Cifars. The locale of the program, which takes the form of a serio-comic musical serial, i> rehearsal time back- stage in a Broadway theatre. All of the principals of "Uarv and Esther'' are well known to both Broadway and radio audiences. Bergman, remembered best l)y radio fans as *'Joe Pa- looka," is a trouper of long experience. He is espe- ciallv adept at character parts and has played in such important vehicle- a^ "Wliat Price Glory" and *'Koad to Rome." Audrey Marsh, soprano, and Jack Arthur, bari- tone, arc both well known to radio listeners. The for- mer, a graduate of the musical comedy school, has been on Columbia network i)rogram.s for many years and was recently featured in *'Hiane and Her J.ife Saver." Arthur is especially remembered for his work in **What Price Glory" and the '^De^rt Hong." The Rhythm Girls are network newcomers, while Victor Ar- den is a radio veteran long identified with the foremost aerial programs. singer scored again in two operas and a concert per- formance in Paris. Martini, who in IIKU went from the V. B. S. studios to become a romantic sensation at the Met., also won a new triumph in the iilms this summer. He recently dew back from the west coast after finishing his first major movie role in the Fox i)icture, "Here's to Ro- nuince." He witnessed its widely acclaimed premiere at (hauman's Theatre, Los Angeles, before coming east. It is hoi)ed that the new series will win the ever- increasing ai)preciation of fine* music by the American public. Kostelanetz has augmented his forty-piece or- chestra and vocal ensend)les with new and promising tah'ut and has added to his special corps of arrangers. The Chesterfield series, first inaugurated on the CBS network in January, 1032, has earned a reputation as a criterion of broadcasting entertainment. It has touched u]>on virtually every i)hase of ])ublic appeal and it is considereMIA. BAYUK BREVITIES LD dominion Tohaccn Co., distiilnitor in tho Xorfdlk, Vn., torrit(n y. iMuitimu's to show an inciM'asc in llic salt's of r>aynk IMiillifs. Tho company is sni>]MMtinu its intensive sales cani- paiirn with well-phiciHl ailvertisinir material . . . F. J. Biel, Telle Haute, Ind, leeently iinished a suecessful drive on Phillies with the assistance of Paul K. Bowers, Bayuk salesman ... I). Kurnian Co., Milwaukee, AVis., report an increased demand for Pliillies and orders for additional shipments are l»einers . . . Sales of El Product o and La Azora are showing a gratifying increase. Mint Perfectos, one of the outstandinir five-cent sellers of Yahn & ^k•Donnell, is l>eing featuretl in win- dow displays in all Y. & M. stands through the city this week with excellent results. Oeorge Stocking, of Arango y Atango, arrivetl in town as per schedule oti Wednesday of last week, to |)ay a visit at John Wagner & Sons, Dock Street. amage was confined to the motor. The blaze was believed to liave Immmi caused by defec- tive wiring. Trade Notes Barton Lemlein, of M. Sacks c^ Co., droppi'd in among Philadelphia jobbers and retailers with glowing reports of business for his firm. Mr. Joseph Wagner, of John Wagner & Sons, re- turned to his desk on Momlay following a most enjoy- able vacation spent in Maine. Abe Caro, of Optimo fame, was in town this week, visiting Yahn & McDonnell, local distributors of the brand. Steve Hertz, of the Haddon Hall factory, was in town last week visiting jobbers and retailers. The Had- don Hall enjovs a nice sale in this territory. Ihrnian Abrams, of the Medalist factory, is on a trip through Kastern Pennsylvania promoting the dis- tribution and sale of his brand in a highly successful manner. Crosby Square, the recently introduced brand of Yahn & McDonnell, and Briggs smoking tobaceo, also distributed here by Y. & M.» are enjoying a nice in- crease in Inisiness at this season of the year. On Monsociation; Philadeljjhia (Jreeters No. 45; the Philadelphia Stewards Asswiation, and the Phila- clelphia Restaurant Association. The outing consisted of a cruise down the river on the Wilson Line's '* Penn- svlvania'*, with a stop'OfT on the return trip for a fine (iinner at the Hotel Riverview at liiverview Beach. The outing was well attencled and a splendid trip was enjoyed by members of the various associations and their guests. 7^ Ttbaee0 WmU Cigars are the inoal pleasurable uiid economical iorm of amokinK. BAYUK BULLETIN Devoted to the be»t interests ofthemenwho Hell cigars. First Issued 1929 SliPFfclvIUhlK n. in» Prepared twice a month PHULOFAX ( The Retailer's Friend) SAYS Phil knows a sales- man who felt he did a pood advertisinK job by averaKinjT 58 dealers' helps per week for twelve weeks. Phil, also, knows a salesman who in his one working day took 75 bona fide orders for cif?ars, the majority of wliich were delivered by himself. "Did the Old Timer ever know Alex Siiiart who wrote that article in the Bayuk Bulletin last year?" asks a joliber's salesman from Illinois. Know Alv X Smart? Why the Old Timer tells Phil that at one time Alex worked for him. No, wait a minute . . . That sh-.uld read, "the Old Timer tells Phil that at one time Alex was employed l.v him!" CONFESSIONS OF AN OLD TIMER CHAPTER XVU SAM'S GOING TO RETIRE RICH Too soon to think about Cipar Box sales for Christmas? No, indeed not — start thinking about Christmas Kal.'s but start PLANNING for Cigar Box Sales for Thanksgiving Day. Three more months in 1935 to de- crease your deficit or to increase your inc rease — which is it to be? What was done the first three months always has a bearing on what you do the last three months! What A>w CBAM02BA inean? To anxious inquirers, information as to meaning will be sent promptly in gcaled envelope. P-st, P-st, — it's got gumpin' to do with CBAI "As a salesman, what is my best qualification? Hov. can I enlarge it?" "As a salesman, what is my worst handicap? How can I overcome it?" Good questions for a Salesman to ask and answer himself BUT why not equally good for all of M to aA »nd answer? p What's wrong with this story? Mr. Dealer and Mr. Salesman talking. Mr. Dealer says to Mr. Salesman: "I saw your cigar ad in last night's paper." And Mr. Salesman said: "Oh didja? I hadn't noticed it." What's wrong, folks, ni^^l wrong? When fou go after an order, do you HOPE to get it or do you EXPECT to iret it? If you're doing the former, tr:, the latter! _o— From F. P. G.— "After 1 sell a box of < igars to a customer, the firat time I see him I inquire if he is entirely pleased with his purchase — this clinches the sale and pav» the for another ortier." way An odd rim In » einr dealer's window — "If YOUR BOSS cuts pries, he'll have to cut WAGES. If Vou want cut pricai, jrou'll get cut wages!" Ml D.B.L wMft BATVK GiG4M INC. PIMm- t»97. Some jobbcrt, lik* olh*r butincM men, go into the red. when by right* they ■hould be in the black. In thi* chapter the Old Timer icllt how they get that way — and prescribei the cure I There is a tendency these days for jobbers to cover considerably le.ss ter- ritory than formerly was the custom . . . of course, years ago, you had to work a greater area because of sparser population but that wasn't the only reason why some jobbers did so. One time I was sent to straighten out a jobber who had been losing money for the previous three years . . . with so much capital invested, it was easy to figure almost to the day that at his current speed of losses, just when all his capital would be eaten up and he'd be out of business. This jobber was located in the ex- treme West in one of the larger popu- lous towns of the state. Had some good selling brands . . . was getting a .sati.s- factory margin of gross profit on his sales and yet was running into the red right along. After a little analysis it was easy to see what was fundamentally wrong — and yet how strange it was that the reason was so obscure to the jobber. So frequently has it been my experi- ence that many jobbers just will not investigate or analyze their own busi- ness or seem to sense their own errors . . . mayl^, it's a case of not seeing a thing because of being too close to the thing. Too Much Territory This particular jobber was actually covering states when he would have had his hands full covering an equal number of counties. He was travel- ling 500 miles to sell cigars when he could have gone five blocks from his house and made an initial sale of his featured brand — he didn't realize that for every mile away from his jobbing house, his expenses increased and that the closer he "kept to home" the more his profits increased, but he didn't seem to be able to fi^'ure out just where the dividing line should be and seemed amazed that this could be determined to a degrc-e of almost absolute cer- tainty. First it was pointed out to him that his profits were satisfactory but that his expenses were too high, and too high simply because he was working too far from base. He was told that population was the basis of how much business could be done and the amount of capital in- vested would indicate how much of the total potential business (based on fjopulation) he could do, and that if the amount of business he could do, as permitted by capital, was within a radius of 60 miles, why stretch out further until either additional capital or capital plus profits so warranted? He was shown that there might be some glory in making towns 500 miles away but that he was not entered in a Popularity Contest, and the way to make money in our line was to concen- trate in a given logical territory. 7oo Biff a Saiea Forcmf He said he "guessed" he had too many salesmen and he was shown defi- nitely just how to find out whether he had or not — in short, fundamental business principles were laid down for him and 1 took a chance that if he put them into effect to virtually guar- Sam Townley runs a one-man cigar stand in a 24 story office building. For years he did pretty well with it. But not long ago he added a bright sixteen year old boy to his sales force and doubled his business almost over- night. Sam's the sort of man who does a bit of thinking between customers. One day he asked him.self why the milk companies went to so much trouble and ex- pense to deliver milk, when it would be so much easier to let the customers buy milk at the corner grocery. To a man of Sam's intelligence the answer was obvious. A dairy runs a delivery service for two reasons. First, it thereby gets practically all of the customer s trade instead of dividing it with several competitors; and secondly the individual housewife u.ses more milk when it is brought to her door than when she is obliged to trot to the store for it. "If door to door delivery is good for the milk business," said Sam to him- self, "why shouldn't it be good for the cigar business? Why shouldn't it be good for my cigar business?" He decided to try it. He fitted up a tray with half a dozen popular brands of cigars and cigarettes, attached the tray to a bright sixteen year old lad, and .sent the young man on a tour of the offices in the building. The idea clicked from the start. Sam's walking cigar counter now makes the rounds of the offices four times a day, as regularly as the post- man. And he's equally welcome. It means something to a man (or a girl) marooned 24 stories above street level without a smoke, to have that smoke suddenly appear in the doorway. Sam's going to retire rich some day. antee in behalf of my Company that his business volume in a relative smaller territory would not go down but that his expenses would — with the consequence of his profits going up. Here was a concrete instance of a man having capital but not knowing how to employ it ... he felt safe 'cause he was paying his bills promptly even though he was losing money, and strange as it may seem, he didn't realize that his excess expenses were dwarfing his capital until some day it would have disappeared entirely. Well, he followed through, and inside six months he was in the black and I have still in my possession a fine cigar humidor he sent me as a token of gratefulness. 1 appreciated his senti- ments very much but isn't it a sales- man's duty to render service to his customers? He was a better account for me, so as always in the Law of Rightful Recompense, we both were benefitted. Could a similar situation exist to- day? I wish I could answer with an emphatic "no" but regretfully I must say that here and there throughout the country you'll find some folks staying in business with no set plan nor no set goal. I asked a "jobber" only day before yesterday how many times he was turning his capital and I didn't get his answer until I asked him how much money he had in his business and how much business he was doing. Humorous? I don't think so! In dM MM* iMidkBMl A* OU TiaMW dJifam SMMliaa Aal** in the mind* of wwyfcedy cmUMCtsd with the c^ur btMinaw. It'i • PMMy daUmta aubiMt mmd nflfbe the OM llnor b nttmm i« •Bt«b fear to tr^ad. but"-*Aaip. i*t miaa thi* next chaptar. Good? He's Darn JSear Perfect:\ WM. T. rjACK*^ GLASSFORD SETS NEW RECORD WITH 85.SALE DAY Friday is a lucky day — for Newark (N. J.) cigar salesmen. On Friday, August 9, Grover C. Munson of that city hung up a record of 75 sales in one day. Exactly one week later "Jack" Glassford, who sells for the same outfit as Grover, saw Grover's 75 and raised him ten. On this particular Friday, Jack covered 115 miles of territory, made 92 stops and wrote and delivered 85 orders. When asked by the Bulletin repre- sentative how he did it, Jack had this to say: "When I first went on that route two years ago there were only 38 stops and I used to write about 28 orders daily. Every trip I added a few more new accounts, made place- ments of new brands and put up a few more posters. "All the while I kept my eye out for any new sales suggestions that I might pick up in the Bayuk Bulletin or elsewhere. Last year, acting on a tip from Phil M. Phulofax, I went after road stand business, and this year I've been working the road stands hard and getting lots of sales from them. "I make my first Mi^ about 8:30 in the morning and keep going until the route is done. That's all." If there's a moral in the story rf Jack Glassford's 85-sale day it must run something like this. If you work hard for two years developing a route and if you do everything a good sal^- man is supposed to do — you're likely to make some very, very nice sales. BAYUK BRANDS BtllLO BUSINESS Bavnk Phillies (BAYUK PBILADELmiA PEBiVnt)) Havana Ribbon MapaculMi Qiarles Thomson Prince Hamlet Chesterfield Sales Gain Indicated TSIXG cost of mninifactiiro for \\w principal ciuarotto makers, I'vidoiu'od mainly by tho in- ] croasi'd cost of leaf tohacco, has caused Li^- i»ott & Myers Tol>acc(» Co. tiius far in HKl") to show earninirs under the record for the like ])eriod last year, says the Wall Sfrrtt Jnnmal. While tlie com- ]niny rei)orts on its profits hul once a year, nnoflicial information from (|naitcrs ch»>e to tlie company imli- cates that saK's volume of the company's principal product, the Chestertield cigarette, has increased. Last year Liirirett ft Myers earned $-2(M>sn,n9(>, which was e(pial \n ^o.jrj a share on combined ;5,1.*I(J,iKJ9 eonunon and connnon H shares. This comi)ared with $l(),7:n,17:), or >;4.84 a share in VXVX This year, as in 19.'>4. the profits of the company are beinir reduced bv the i)rocessinu' tax which the com- pany i)ays the (lovernment. Last year's total ])ayments wei-e between $b,."3U(),U{K) and $i>,UUU,UOU, equal to from $2 to $.*? a share on the company's stock. Larimer sales this year have probably raised the total tax payments bv the com])anv. Kelief in siirht for the tobacco comi)anies results from action of House and Senate conferees in airree- iuir on chanires in the law which would provide for a reduction to 1.9 cents from 4.2 cents in the tax on Hue- cured tobacco and a droji to .*>'- cents from <> cents in the tax on Burley, effective October l>t. This would be a net reduction of about 2.4 cents a pound in the rouirhly three jiounds of tobacco goinir into the manu- facture of one thousand cii^arettes. A savin.ir of this size would be not less than half the present processing tax ])er thousand cigarettes. Based on the trade estimate that the ciirarette makers last year paid $25,(HX),tKM) to $3U,(X)y,0(M) to the Federal Government under the jirocessinu: tax, the sa%'- ings on an annual basis would be not less than $10,- ()(K),000, and might run over $15,000,000. Halving the amount paid by the individual companies would mean that Liggett & Myers would save, on an annual basis, from $1 to $1.50 a common share. Applying only one-fourth of thi> saving to Liggett SEPTEMBER 13 DEADLINE FOR FILING BRIEFS ON BURLEY TOBACCO TAX RATE A hearing to determine whether the processing tax rates provided under the amendments to the Agricultu- ral Adjustment Act will cause a reduction in the con- sumption of Burley tobacco used in the mauufactnrc of smoking and chewing tobacco, and if so, what rates would Not cause such reductions was complete in the Bureau of Internal IJ-evenue Buihling, Washington, ]). ('., last Monday afternoon. Interested parties were given until September 131h to file additional briefs with the hearing clerk. Representatives of the industry presented evidence with reference to Burley tobacco used for chewing and smoking purposes. An additional statement prepared by a committee appointed by the industry was pre- sented which set forth the facts concerning the present situation with reference to pipe smoking tobacco. 10 ^ Myers' earnings for IfKi') might, however, not be suf- cient to bring the year's profits up to the VXU level. An eciually important jirovision of the agreement between the two branches of the Federal legislature is that manufacturers who can show that they did not )»ass the tax on to customers can seek to recovei- the tax. January i), VX\4, after the processing tax had been in etYect for several months, the [)rice of cigarettes was advanced sixty cents per thousand to $(>.10. The i)re- vious ]trice of $5.50 i)er thousand, however, did not re- Ih'ct low operating costs, but competition which forced the wliolesale |)rice to a non-profit level. From October :>1, 1}>22, to February 1.*?, 1933, the price of cigarettes did not drop below $"(> a thousand, and the level which held for the longest time was $6.40 list ijrice. For some time Liggett & Myers has been i)aying, in regular dividends and extras, $5 annually on the com- mon stock. Because of the moderate margin by which last year's ])ayments were covered, and the probability that this year's earnings will be lower, |)ersons close to the company scout the suggestion that the company is considering a larger extra dividend. Precedent and the lower earnings rate both indicate that expectation of a larger dividend is over-sanguine. It has long been the company's policy to consider extra dividends only at the meeting in January when the previous year's earn- ings are disclosed. Further, the larger volume of business being han- dled, together with the higher price of leaf tobacco, has necessitated a larger investment in inventories. Where inventories at the end of 11K»2 were $70,746,077, and on December .31. VXVA, stood at $7S,1 15,17!), they were ex- panded during l!Ki4, and at the end of that year amounted to $109,3<>2,n(»O, the highest in the company's history, and an increase of $.'il,247,7Hl, or 40 per cent. (HTsetting this, Liggett & Myers' holdings of (lov- ernment and municipal bonds ilropped to $2.'il4C,41>H from $48,318,040 a y*'ar earlier and $52,442,077 on l)e- cendicr 31, 1932. Cash holdings at the end of 1!).'>4 were $11,507,999, and total cash and marketable securities holdings, including preferred stocks, stood at $37,135,- 2*^2, whi♦ ft United Cigar Favors Price Maintenance Altliouiili many retail ciiiar dealors are laboring muler the lu'licf that the Uniteil ('ipir Stores Company is not interostinl in ])ricr-maintonant'o, a ]>rominont offi- cial of tlio company in an interview )»nhlishe(l in the Chain Store J//r states very ]>lainly that the company stands s(»liaiv iH'hind snch ]»rice-maintenance as will insure a snbsiantial proiit. The interview in part roads as follows : '*The principles emlK)died in the Fair Trade laws passed by several states are necessary t() the main- tenance of satisfactory workinii* conditions in the retail tobacco trade. Here* at United Ci.^ar Stores we are maintaininii- the maxininm hours provision of the code and are payinu waues that are above the code minimum in every instance. But some safeiruard against falling prices is necessary in order to ]H'rmit us to continue to adhere to the code levels of hours and waii:es. We felt from the very beuinninu of the effort to establish minimum want's and maxinunn hours, that we should hel]> wholeheartedly. We lost no time in signing the President's aureement (m hours and wagvs and when this agreement was reinforced by the drafting of the code we agreed to and have continued to adhere to the levels then estal)lished. We have every desire to maintain those code provisi(>ns indelinitely, for we be- lieve that the nuixinuun hours set up for our trade are sufficiently long and we have alway> realized the im- portance of jmying fair wages. The protection again>t unwarranted i»rice cutting that was atTorded by the code nuule it practicable for us to increase our payroll by approximately $20,0(K) a week and to raise the number of employees by about 12 per eeut^ — these increases beinu neeissary to adjust store hours to the cotle nuiximum. Without that protection the added expense would have been out of tlie (|uestion. ('ontinu«Ml ]»ayment of that extra ex|H'nse will be p(»ssible oidy if some method is found for jircventing a recurrence of the »ha<»tic price situation that existed prior to the adoption of the code. Since the ruling of the Supreme Court that drew the teeth from enforcement of the eode we have seen prices slii^piiii:: danger(»usly in some places and threat- ening to slip in others. We have tried, and we know that others have, tO keep prices at fair levels and in some sections of t^ country the etTort luis been successful thus far. Hut in others our pririce> in the faee of a cut j>rice competition. The public is inunediately consi ions of the slightest price change — even a change of a fraction of a cent in cigarettes. Any attempt to hohl to a fair price in the face of price cutting results in (piick loss of business. Under the code, with its minimum prices on cigar- ettes, it was possible to secure a splemlid degree of compliance. A> a result we wcic able to gross 16 per TOnt. on the four leading brands. Since the code went out (»f force the gross has dropi)ed from 16 per cent, to a low of about 5 per cent., and although there has been a measure of recovery in New York and some other sections, there is a tendency in other filaces to cut still lower than .") per cent. Obviously we cannot expect to maintain the desired w*ag«8 and hours for long when we are grossing no bet- ter than 5 j»er cent, on merchandise that makes up about 5(i per cent, of our volume. Aiul we are not even sure that priws will not be carrieund — for once price- cutting on cigarettes is started there is no bottom. A\ e had an illustration of that in New York not long ago when a ridiculous price war between department stores carried i)rices to a low of V^ cents a carton for cigar- ettes that cost .$1.08. The Internal Revenue tax is 60 cents i)er carton, so that the retail i)rice in this instance was 17 cents below the amount ])aid for tax, to say noth- ing of the cost of the cigarettes themselves. At present the retail tobacco trade must depend upon voluntary action to maintain cigarette ])rices even at the low level on which they stand today. In the eastern states, as a general rule, ])rices on the four lead- ing brands have been stabilized fairly well — at the time of writing— at 1."? cents a package, two for 24 cents, and $1.17 a carton. These ])rices show margins of gross |)rotit thai are far too snuill to meet the cost of si-llimr, to say nothing of netting a ]u-ofit. On the two-package price the gross is only 10 per cent, and on the carton ]>rice the gross is a little less than 7.7 jn-r cent. It is essential that the tobacc(» industry should seek some means of ])rotection — not in the form ai' ]nice fixing but in the establishment of minimum prices at reasonable levels. It seems obvious that the industry cannot rely upon voluntary action alon<', even though voluntarv action has accomplished soniu beneHdal re- suits since the coermanently effective. Far too many of the 800,000 feel that tobacco is merely a sideline and there- fore can be used elTectively as a leader. We hope that \\io application of the ])rinci])les em- Ijodied in the Fair Trade laws will enable the industry to save the best parts of the code. We hop** that these ]>rincii>les will be used to establish minimum prices tluit will i)ermit retailers to carry out their present ])olicies as to wages and hours. Thus far, it is true, there has been little in the functioning of tlu'se Fair Tra inclusive, with provisions for termination upon due notice by .the producer, jjroclanuition by the Secretary, or failnr<' of the producer to comply with the terms (»f the contract and rulings. 2. The base tt)bacco acreage for each farm under the contract will be substantially the same as that pro- vided under the i»resent contracts, with minor changes to remeaceo entered for consump- tion in Canada, issued by the (^anadian Department of National Revenue, shows that in July 1935, there were entered for consumption 1,(>44,H69 pounds of cut to- bacco, .366,413 pounds of plug tobacco, 63,881 |)ounds of snulT, r)15,!>9rM».j() cigarettes, 11,7r)l,02rj cigars, and 685,- 684 pountls of foreign raw leaf tobacco. Stocks of for- eign raw leaf in warehouse at the end of July amounted to 5,269,184 pounds. ( Commercial Attache H. M. Bank- head.) Sittftp%l*er 15, I9S$ THE FRIEND A DEALER NEEDS IN A 15c TOBACCO No fine pipe mixture has ever enjoyed the instant success that Briggs has achieved. Wherever pipe fans gather, the talk today is of Briggs. Smokers of premium priced brands prefer it to their former expensive blends. Old time "15* tobacco" experts fmd in Briggs a sense of complete satisfaction that is new in their ex- perience. Dealers find in Briggs a friend they need be- cause its retail price is protected and full profit is assured. For proof ..ask your jobber which 15# tobacco has doubled and trebled in sales and his answer will be "Briggs Pipe Mixture." P. LORILLARD C O., I N C. Esfobfisfied 1760 II* WIST 40TN STIIIT ■ NIW TOtK CITY Tune in..Brigos "Sports Review of the Air" . . Feoturing Thornton Fijher . . N.B.C Red Network . . Soturdoy Evenings TOBAOOO TBADE ORGANIZATIONS TOBACCO IIERaiANTS ASSOCIATION ^'^#0)^ OF UNITED STATES ^'J^rlM> /ESSE A. BLOai. \^Tieelinf. W. V* Prcstdcat JULIUS LICHTENSTEIN. New York, N. Y Vie«- President WILLIAM BEST. New York, N. Y Chainnaa Executive CommittM IIAI. GEORGE W. HILL. New York. N. Y Vice-Prcaidcat GEORGE H. HUIIMELL. New York, N. Y Vice Pretidcat H. H. SHELTON. W««hinfton. D. C Vice Pretideat WILLIAM T. REED. Richmond, V» Vtc«-PreMd«at HARVEY L. HIRST, PbiUdelphia, Pa Vicc-Prcaiduit ASA LEMLEI.V. New York, N. Y Trcaaarw CHARLES DUSHKIND. New York. N. Y Coaaacl aad Maaafiag DirMtor Headquarter*. Ml Madiioa Ave.. New York City RETAIL TOBACCO DEALERS OF AMERICA, INC. WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y Preiidaat CLIFFORD N. DAWSON, Buffalo, N. Y E^aecutiva ViccPrcaidaat JAMES C THOMPSON. Cliicaco, III Trcaaaier ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS tOHN H. DUYS. New York City Prcaidaat fILTON RANCK. Lancaster, i^ Rrat Viee-Prcaidaat D. EMIL KLEIN, New York City Second Vicc-Prcaid«al LEE SAMUELS, New York City Secretary -TraMtirer NATIONAL BOARD OF TOBACCO SALESMEN'S ASSOCIATIONS ABE BROWN, 4C» Market Street. Newark. N. J. President JOSEPH FRKEMAN, 6lS We«t ISOth ^reet. New Voik lit> First Vice President FRANK S chants' Association on each registration. Note B-.-lf a report on a search of a titla necessitates the reporting of iiwi* than tea (10) titles, but less than twenty-one (21). an additional charge of Omm Dollar ($1.00) will be made. If it necessitates the reporting of more than twcaty (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 (11.00) will M made for every tea (10) additional titles necessarily reported. REGISTRATIONS DON CASPAR :— 46,475. For cigars. By B. Stone Company, San Francisco, Cal., Mav 24. 1935. (Bv consent of B. Bercovich, Oak- land. Cal.) AIR CONDITIONED:— 46,476. For all tobacco products. A. J. (lolden, Baltimore. Md.. August 8, 1935. PAY LESS:— 46,477. For cigars. H. B. Franklin & Co., Chicago, III., August 30. 1935. NEW CIGARETTE FACTORY AT SHANGHAI A subsidiary of a Manila cijirarette manufacturing company is now o])(M'atin«i: a now factory at Shanghai, China, tHjuii^iKMl with modern American and some Chi- nese machinery, at an investment of 5(K),0(X) yuan. The cajiacity of this new factory is *2,(KM),(KK) cigarettes each eight hours, but at present it is operating at fractional capacity. The output is limited to three brands, in- cluding a small Philippine cigar, priced in United States currency at 6 cents per jjackage of ten, a cigar- ette-cigar 4 cents for twenty, and a Virginia cigarette 4 cents for t went v. ((Vnnmercial Attache Julian Ar- nold.) MECHANIZATION OF THE NETHERLANDS CIGAR INDUSTRY The Netherlands Oovemment is reported to have made an inventory of the machines in use in the cigar industry as of May 15, 1935, and, although it was re- ported that legislation was l^eing prepared to prevent a possible too rapid mechanization of the industry and to compel a manufacturer to obtain a license from the Government before installing a machine, nothing has been done to date to make it legally impossible to instal cigar manufacturing machinerv. (Consul W. M. Chase.) Send Two Dollars, with the coupon below to Tht Tobacco World, 236 Chestnut Sc, Phila., Pa., and get your copy twice a month for a year. Hame. Street No*. P.O*. JSdM. The importance of attractive and dependable containers for fine cigars is recognized by the progressive cigar manufacturer. Generally the brands that are increasing their goodwill in this present analytical market are packed in the ne\v improved AUTOKRAFT cigar boxes. Cigar Manufacturers who have not investigated the value of the merits and economies of the splendid and inviting package may obtain complete details promptly by addressing the AUTOKRAFT BOX CORPORATION. Phila,, Pa. Hanover, Pa. Cincinnati, Ohio AUTOKRAFT BOX CORPORATION ,.,^°'* '!* Chicago, III. Lima Ohio Detroit, Mich. A NatioixWidc Service Wheeling, W. Va. iiiiiiiiiiiiiiiiiiiiiiiiiiiinT]^ iiiiiiiiiiiHiiiii'umumTrTTTm PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST. »»HILA., PK, CRAIG WOOD ( r/j,'/'/) - Helen Hicks — Gene Sararcn— Bill Mehlhorn — Denny Shute— >X'iUie Macfarlane! Their names sound a roll call of tense moments that have made golfing history, when prime "con- dition" and healthy nerves were at a premium. AH are outsp«)kcn in their preference for Camels. "Camels are so smoiUh and mild they never affect my wind," says (.raip Wood. Willie Macfarlane adds: ■ ( amels are mild. They don't get ni\ wind." Mins Helen Hicks brings up this: ' liurc's a delicacy of fla\»>r in Camels that appeals to women, (amels never interfere witli unes wind." And Denny Shute s.t\s; 1 switched to Camels years ago. 1 smoke them constantly, without upsetting my nerves or disturbing m\ wind.' You'll Likv ihtir Miliintss Too! Such experiences with Camels can be matched right among your t»wn friends. ^ t>u'll like C^amels too. Camels are made trorn ctsstlier tu- baccos. They never tire \our taste. SO MILD! YOU CAN SMOKE ALL YOU WANT MIHLHOIIN. Bill says; I smoke Camels steadily. They don't get my wind i>r m\ nerves." COSTLIER TOBACCOS! Camels are made from finer. MORK IXHIiNSlVI{ l()HAC.(()S . . . Turkish and Domestic . . . than any other popular brand. I Sii:»iiJ) R J REYNOLDS ToBAC CO CO. Wintton-Sairm, North Carolina STORE CXCCUTIVt Doroihy Smart Bill THE TOBACCO WORLD Vol. 55 OCTOBER 1. 1935 No. 19 rCU'ST was an otT iiHuith in tobacco products, allliouuh not suflicicntlv otT to cause anv con- ('('in. Cij^ars (Icclincd :!,171,()ir), or .74 per cent., but don't t'orgct tliat for the first ei,.'n;?,lH(), or 1.7(1 per cent., while the latter increased (1770, or 2.84 per cent. Los.ses in the three other cigar classes were as follows: H, 2G.'i,2( ).% or 5.C1 j)er cent.; (\ 7,8()4,()14, or 17.5 per cent.; D, l,3r)3,14i), or .%.()() j)er cent. To complete the record, littk' cigars declined 2,748,400, or 14.47 per cent.; snuiT declined 141,450 j)ounds, or 4.(54 i)er cent., and manu- factured tobacco declined 594,022 i)ounds, or 2.13 per cent. Puerto Hican cigars declined l,8f)4,270, or 31.75 per cent. ; and ^^anila cigars established the remarkable gain of 8,()7(),12(), or 7(1.41 per cent. rUTHPn? as a matter of record for our readers we reprint the following fiom an extensive ar- ticle on tobacco in the September issue of For- tnuc magazine: "The V . S. consumes well over 130,0(MMMM),000 eigar.s and cigarettes in a year. That is the annual e(piivalent of some 15(M) cigarettes and sixtv cigars per inhabitant over fifteen vears (if aire. Random samples taken by investigators indicate that over two-thirds (»f the nati(»n smokes regularly. No stati.stics have cvir been compiled on how often the average smoker swears off — nor on how soon he re- lapses into his old ways. Hut in view of the continual pother over smoking and its etTects, it might be su|)- posed that a good deal of research had been done upon tobacco and a gocMl deal of knowledge ae«"' ^50 * y«»r- Entcre*^ »» second-class mail matter, D^ember 22, 1909. at the Post Office, Philadelphia, Pa., under the Act of March 3. 1879. Larus Co. President Dies Suddenly ^^|1LLTAM T. REED, i>ivs'uk'iit of Lanis cS: Bro. \f^ Co., woU-knowii tobacco iiiaiiiit'ai'linors of Rielimoiul, Viru'iiiia, pasMul away suddt'iily on Se|)toinbor l()tli, while soatcil at liis diiHier table ill his country home at Beiidover, i'ollowing a heart attack. Mr. Rood had been in excellent health u)) to the time of his death and had spent a jmrt of that day, as usual, in his office at the l.arns c^- I^ro. Co. plant, re- turning" to his country home in the afternoon. Mr. Reed was })orn in Richmond, September 23, 1864, the sou of William 1^. and Anne Larus Reed, both members of well-known families m that city. P'ollowinu his schoolinm,' in the Richmond i)ublic schools he entered the {'inploy of Ids uncle in the Larus & Bro. Co., and succeeded to the ])residency of that comi)any foUowinu' the death of his uncle in 1908. ^Ir. Reed was always active in the public afTa'rs of his eitv and state and at the lime of his death was Ik director of tlie First and Merchants National Bank; the Chesapeake and Potomac Telephone Co., and state director of the Richmond, Fi-edericksburir and Potomac Pailway. He was a i)ast i)resident of the Tobacco Merchants Association of the Cnited States and a vice-president at the time of his death. He was also chairman of the i^oard of \'isitors of the .Medical College of Viruinia; chairman of the Finance Committee of the Cnion Theoloiiical Seminary, and of the Finance Committee of the Board of Deacons of tlie Set'ond Presbyterian Church. His i^enerous contributions to pliilanthropic en- terjirises was well known as was his kindiy intei-est in the woikin^' comlitions and welfai'e of the emj)loyevs of the Larus ^ Bro. Co. This c(uni>any adoiited the iive-dav week manv rears asfo. Funeral services were held on Fridav afternoon, September 20th. He is survived bv Iiis widow, Alice Burwell H«*ed; one son, William T. ; one dauichter, Mrs. Robert S. Preston, and live g:randchildren. Also four brothers, Pleasant L., Leslie IL, .lohn H. and Charles. He was seventy-one vears old. New Radio Series for Old Gold ilHROrOHOUT the tobacco industry the liveliest intere>t alwavs is manifested in whatever ])lans and ])rou;ress are announced by the P. Lorillard Company, makers of Old U(dd ciga- rettes, Briggs Pipe Mixture and Muriel Cigars, so it is entirely in keeping with such a spirit that advance information is now released to the tratle regarding the new radio entertainment Old (iolds will i)ut on the air beginning Saturday, October .Jth at 7:4.3 P. M., E. S. T. over an extensive X. B. C.-WEAF hookup. In general, the new program will be a thrilling re- sume of outstamling evi'uts in all blanches of amateur and professional sports events^but during the fall and earlv winter davs it will be ireared up closelv with news about and final game scores of football scrimmages in every sector where this rigorous pastime is scheduled. Each week's broadcast will be directed bv one of the most talented and best liked sports commentators on the air — Thornton Fisher, who is an accredited au- thority in all branches of sports — and himself the oper- EDITORIAL COMMENT iCofUinued from Page 3) LA(HARISM of the **other fellow" is as need- less as it is stupid. H* the chiseler and the crook are left to themselves they l>ecome sadly lonesome in the spotlight of their isolation. They are so easy to isolate in the beginning — so hard to get rid of in the end. In the test to come will busi- ness be honest enough with itself to admit that some- times the other fellow is a welcome alibi f Will business be W'ise enough to realize that most of the other fel- low's practices are as unprofitable as they are unethi- cal! The other fellow is a bad guide.- * ator of a Virginia breeding farm for thoroughbred race horses and steeplechase jumpers. As a personal friend of ;d)out every outstanding sports champion in this country and abroad, Mr. Fisher has arranged to iiresent many of the most popular of these interestimr personalities t. To help initiate the new Old (lolil broadcast on October .'jth, Thornton B^isher's gm'>t of honor will be IjOU Little, the high-iK»wered coach «if Columl)ia Uni- versity. X»'W York Cit> . A> t'ootball fans know M well, I^u Little not only is a little Napoleon among coUe^ fo(»iball coaches in the field, but he is an orator of parts as well and what he will have to iMy about the leading lampus combinations must surely bear the brand of authenticity, ddumbia expects to be a real factor in this season's football battles, and **Columbia Lou*' is the hov to tell how thev expect to do it. For the week following, October 12th, there will be another great voiwh in the person of Noble Kizer, now tlu» czar of those brawny Boilermakers from Purdue rniversity. Then in this order will cruue Josh Cody, of Vanderbilt T'nivci>ity; Elmer Lay«lcn, once one of Knute Rockne's famous '*Four lIor>cmen** and now head of general staff strategy at Notn- Dame; **,Jock" Sutherland, «.f Fitl: '*Slip" Madigan, of St. Mary's, and on Novendjer 16th Andy Kerr, of Colgate Univer- sity. In connection with the Old (UAd broadcasts during the entire football season, complete scores of all major games will be announced. Tk* Ti^HKco WorU pHIbADEIiA>MIA. BAYUK BREVITIES T. Morris, Bayuk territorial manager for Ohio, was at head(piarters during the week-end negotiating for renular and holiday shipments to his territory ... In PittsbuVgh, H. W. Burnside, Hayuk territorial mana,Lj:er, is assisting N. Rice Cigar Co. in a fall cami)aign for additional outlets on Bayuk Phillies . . . C. T. Herbert, Bayuk salesman, is working with the Indianai)olis branch selling organ- ization, where an etTedive drive on Bayuk Piiillies is under way . . . Charles F. Becker Cigar Co., Detroit, Michigan, Bayuk distributor, are maintaining a nice pace on Bayuk Phillies and are assisted by A. 1 1. Behr- nian, Bayuk salesman . . . Francis Jiroch Co., Muske- gon, Mich., report continued progress on Bayuk Phil- lies in the Muskegon, Michigan territory, where the dis- tributing iirivilege is entrusted to them. G. H. P. JOTTINGS Frank P. Will, executive vice-president of O. H. P. Cigar Co., has just returned fnun a trip through the Midwest and Texas, where he found contlitions very much improved. He is highly enthusiastic over the out- look for increased luisiness, esiiecially during the holi- tlay season . . . Ibdiday business on the company's two popular lines will benefit greatly from the special Christmas packages, which are more attractive even than last year's. The Kl Producto Ikjx carries a blown- up reproduction of the illustration on the label. The I^ A^ra box is osecl ciijar-loaf tobacto adjustment i)rogTam for tho years VXM\ to 1!K)!> was held today in tlie auditorium of the south building, Department of Agrieulture, the Agri- cultural Adjustment Administration announeed. Growers and representatives of the cigar manufac- turing industry were i)resent from Florida, (Connecti- cut, Pennsylvania, Minnesota, Wisconsin, Massachu- setts, New York and Ohio. Proposals presented at the hearing by tho Agricul- tural Adjustment Administration concerned jUans de- signed to maintain cigar leaf tobacco prices to farmers at the i)arity level. Testimony in reference to these proposals was presented at the hearing by growers and representatives of the cigar numufacturing industry. Also considered at the iiearing were the terms of a proposed new 193()-1J)31> contract for the adjustnient in the acreage and in the i)r^ to a point where fair profits "are impossible** and the is being "crushed" small, independent manufacturer to enrich the (Jovernment. Without a dissenting voice, witnesses appearing at the hearing urged drastic reduction or complete elimination of the ])rocessing taxes, leading officials of the AAA to voice a complaint that the industry ignored the purpose of the hearings to determine whether the rates provided by the amendments will cause a reduc- tion in consumi)tion, and instead dwelt at length ui)on the effect of the taxes upon individual businesses. "The Burley industry is catching hell all around," rei)resentatives of that branch said ])rivately after A. B. Taylor, Taylor Bros., Inc., Winston-Salem, N. C, had declared the tax on tobacco used in the manufac- ture of plug twist is entirely too high. He was sup- I)orted bv t. F. Flanagan, Penn Tobacco Co., New York, anil Walter Scotton, Scotton-Dillon Co., Detroit, who urged adjustment of the rates in favor of the in- dustry rather than the Government. An increase from ^ to 3.3 cents per pound on cigar leaf for other than sera]) chewing and smoking tobacco also was opposed, Thomas C. Breen, Congress Cigar Co., Inc.; Waitt & Bond, Inc., and Puerto Bican Amer- ican Tobacco Co., Newark, N. J., presenting figures showing that one of the companies he represented had a net loss last year, due primarily to the processing taxes. Continuation of the processing tax will wreck the industry at the expense of the small, independent manufacturer, it was asserted by John H. Duys, As- sociated Cigar Manufacturers & Leaf Tobacco Deal- ers, New York, while Julian J. Hast, Standard Cigar Co., Pittsburgh, alleged the tax system is crushing the life from the industry. Others who appeared in support of the industry's opposition to the taxes included: R. C. Kerfoot, Web- ster Eisenlohr, Inc., Staten Island, N. Y. ; J. C. New- man, M. & N. Cigar Manufacturing Co., Inc., Cleve- land ; Jacob ^fazer, Jacob Mazer Sons Cigar Co., De- troit; David Abrams, G. Zifferblatt & Co., Philadel- ])bia ; B. G. Nel)inger. J. C. Winter & Co., Bed Lion, Pa., and T. E. Brooks, T. E. Brooks Co., Red Lion, Pa. Lancaster Crop Less Than Half HE tobacco croj) in Lancaster County, Penn- sylvania, in 1934 was less than half as large as that in 1929, according to the Federal Farm Census preliminary report released on Friday by Director William L. Austin, Bureau of tlie Census, Department of Commerce. Tobacco acreage totaled 17,1.VJ acres in 1934, a decrease of 54 per cent, from that in 1929, and the 1934 production was 58 per cent, less than five years earlier. The most signiticant of the other changes in crops during the last five years in Lancaster County disclosed by the census report, includes an increai** of 6675 acres in barley, a 14,(J0U acre, or 14 |jer cent, decrease in wheat acreage and a 4(XM) acre increase in corn. Over 21, (XK) more cattle were reported on January 1, 1935, than on April 1, 1930, in Lancaster County. Part of this gain is a result of the 1935 census being taken at a dilTerent season. The 1935 figures include many more beef cattle on feed than the 1930 figures. The increase of 6 }icv cent, in cows during the last five years indicates the upwanl trend in dairying in this count V. Lancaster County had about 9 per cent, fewer farms in 1935 than in 1930. While the average size of farms increased from 53.3 to 58.6 acres, the average value of land and buildings jwr acre decreased from }^169.79 in 1930 to *1 15.76 in 1935. According to the 1930 cc nsus, there were 37,088 acres of tobacco planted in that year and 46,854,695 pounds of tobacco harvested; in 1935 only 17,152 acres were planted and 19,674,825 pounds harvested. Final figures for Lancaster County will 1k» published later in a bulletin for Pennsylvania. Tkt Tobacco World October t, tgss Cigars Down, Cigarettes Up in August HE following? comparative data of tax-paid l)rodiiets, indicated by the montldy sales of staiiii>s, are issued by the Bureau. (Fij^ures for Autrust, 19:?5, are subject to revision untd published in the annual report) : — August — Products Cigars (large) : Class A No. Class B No. Class C No. Class 1) No. Class E No. 1935 19S4 378,l()r),97() 371,792,790 4,430,810 4,(594,013 87,082,01 (i 2,417,256 240,6.33 44,946,630 3,780,405 238,863 Total 422,281,685 425,452,701 16,23!),747 l!r),45(t 18,988,147 134,697 Cigars (small) N/'- Cigarettes (large) ...No. .^ .-., Cigarettes (small) ...No. 11,974,831,16< 1 1 ,809,.)22,4o3 SnulT, manufactured .lbs. 2,901,313 3,042,763 Tobacco, manufacCd.lbs. 27,311,032 27,905,0o4 Tax-paid products from Puerto Kico (not included in above statement) were as follows: — Auqust — Products Cigars (large) : Class A No. Class B No. Class C No. Total 1935 3,958,030 .3,.53,417.r»6 Cigarettes 35,926,561 .38 35,429,697.26 SmitT ....'/. 522,246.27 547,697.36 Tobacco, ehewinjr a n d smoking 4,916,174.43 5,020,893.« Cigarette papers and ^bes 122,592.8« 83,152.11 Miscellaneous, relating to tobacco "•*.'^2 ,301.84 August Cigar Withdrawals 1920 to 1933 Inclusive 1920. . 1!>21 . . 1!>22. . 1923.. 1924.. 1925.. 1926.. ()72,020.289 1927 622,039,033 1928 641,164,181 1929 616,264,768 19.30 573,626,977 1931 557,432,039 1932 .594,241,547 19.33 604,8()9,{K)1 601,877,267 .598,582,720 517,199,767 463,255,644 401,143,060 4.34,820,517 Collections From Agricultural Adjustment Taxes and Tobacco Sale Tax Total from July 1, 1935 (Fiscal gear 1930) CntHUKtditg Tobacco (tax I'tTective October 1, 1933): Processing tax I m p o r t compensating taxes Floor taxes Mouth of AuQust *4,2.3.3,285.36 $(i,240,256.57 8,449.72 2,(J96.{>0 22,412.42 i,()2,>.oiJ Total tobacco... $4,244,431.98 $6,270,292.54 Tobacco sale tax 147,254.39 149,214.36 CODE SPONSORING ASSOCIATION LIST PUBLISHED HE nct'tl for a list of sponsoring tratle associa- tions and their coth' aulhoriti«'s has been ap- panMit for some time," statetl X. H. Engle, As- sistant Director, Bnreau «»f Foreign and Do- mestic Commerce, Dejmrtment of Commerce, in an- nouncing the recent juiblication of the bulletin, "Code- Sponsorintr Trade .Associations." "With the adjustments which have been nuide necessary by the recent Supreme Court decisitm in the Schechter case a list such as this becomes of signifi- cance," continued Mr. Engle, "since it n(»t only pre- hcnts a comph'te catalog of cotle authorities and sjion- soring trade associations, but furnishes much other important informaticm to those who are at the moment endeavoring to maintain the activities which can be assumed bv trade as.sociations." The bulletin lists over 8(H) industries which were under codes antl gives such information on each as the principal trade association which siKtnsored the code, the approximate size of the industry as to number of einplovees un

r smokers' articles onlv. J. M. RuMiibtTK. Chicago, 111.. October 21, 193.=^. LA PRESUMIDA: — 46,501. I-or cigars. \'. Guardiola, Passaic, N. J.. Xovember 21, 1935. TRANSFERS STEPHENSON:— 6447 (Tobacco Leaf). For cigars. Registered April 8, 1892, by .Arguelles, Lopez & Brc, New York, X. V. Trans- ferred to Burke & Haas, Tampa. Fla.. and re-transferred to Tampa Tiger Cigar Co., Tampa. Fla.. ()ctt>ber 14. 1935. ARGELINA:— 13,208 (Trade-Mark Record). For cigars. Regis- tered January 27, 1894, by (ieo. .S. Harris & Sons, Philadelphia, Pa. Through mesne transfers acquired by Burke & Haas, Tampa, Fla., and re-transferred to Tampa Tiger Cigar Co., Tampa, Fla., Octo- ber 14. 1935. DR. CHARCOT:— 44,313 (Tobacco Merchants .Xssociation). For tobacco, pipes and smokers' articles. Registered July 23, 1925, by National Products Co., Minneapolis, Minn. Transferred by The Vogel Co., Minneapolis. Minn., successors to the original registrant, to William & Martin Eisenberg, doing business IM Billy & Marty, Minneapolis, Minn., November 12, 19.^5. STRAUSS ASSOCIATE DIES Henry H. Singer, wlio was a.^.sociatcd in the whole- sale tobacco firm of W. H. Strauss & Co., Johnstown, Pa., as a partner, pas.sed away at his home there re- cently. He was seventv-two vears old. NEWS FROM CONGRESS _ (Continued from Page 10) ^^ SUPREME CUUKT decision whether 'Urade secrets", such a.s may be embodied in tobacco blends, may be revealed by a governmental agency will be sougbt by the Securities and Exchange Commission in an effort to upset a tempo- rary injunction granted by the Federal Circuit Court of Appeals in Philadelphia last month. Th« injunction was secured by a Pittsburgh ma- chine company which attacked the constitutionality of the Securities and Exchange Act of 1934 following issuance of an order by the SEC in October that so- called trade secrets are public property. The final decision in the case will affect every cor- poration whose processes or business in any way in- volve secret methods or formulas. Pending such a de- cision, there will be no public disclosure of the secrets of companies which must obtain permission from the SEC to list their securities on stock exchanges. It w^as contended by the machine company that the commission's order for publication of trade secrets amounted to ** unreasonable search and seizure*' and is contrary to the security act itself, in that corpora- tions under Section 24 are not required to divulge their secrets. CIGAR BOXES T«L AlgonqatA 4-9532 Established 187! «3?-6^l EASTI7»9«T. •MKwr vonit. CONSOLIDATED LITHOGRAPHING CORPORATION M«aOft(«.ORAND sntll T ** MORGAS AVISI l, HRiXJKL^'N. N v. I A V