Title: The Tobacco world, v. 59

Place of Publication: Philadelphia, Pa.

Copyright Date: 1939

Master Negative Storage Number: MNS# PSt SNPaAg189.5

Volume 59

1939

▲

ESTABLISHED

1861

TOBACCO'S CONTRIBUTION

TO U. S. PREEMINENCE /

• /

Revenue derived from taxation of
tobacco products now exceeds a half bil-
lion dollars annually, more than enough
to maintain the standing army of the
United States.

For the fiscal year 1938 the yield to
Uncle Sam on cigarettes alone was $493,-
454,145, based on a production of 164,-
484,989,814 cigarettes.

Only the income tax and the tax on
alcoholic beverages yield the United
States Treasury a larger revenue.

The tobacco industry ranks sixth
among the chief manufacturing indus-
tries of the United States, being ex-
ceeded only by the food, clothing, auto-
mobile, steel and petroleum industries.
Census figures show that the value of
manufactured tobacco products at retail
annually exceeds $1,590,000,000. .- . ^

lIoBART I>. Han KINS — Editor

dCGGl.

Bus})irss Manaycr — H. S. Phillips

NERVE STRAIN APLENTY_BUT NO JITTERY NERVES

FOR CARL DO^EY— .CHAMPIONSHIP COWBOY AND STAR OF THE RODEO

THE MAN ON THE "BRONC" is

Arizona s ( ar! Donncx. \% inner ot
two bareback chanipit>nships in
California and a high-point cow-
bt>y title at the big I'tah show.
Here IS ( arl at New ^ Ork s Maiii-
son Square Cjarden in a thrilling
stunt depending on splic-sccond

timing, perfect nurvc control. Is
it a strain.' (!ari says: "One hour
art)und the ring puts more strain
on the ner\es than a whole tlay
punchin' cinvs. .My ner\es would
be plenty tense if I liidn t rest
"em e\er\ «.li.iiue 1 get. .M \ w a\
is to let up — light up a ( amel."

LOOK TO THE DOG FOR
A VALUABLE HINT ON NERVE STRAIN

YOU CAN TELL hv Carl Dosscy's hii^ smik- that
%vhilu !k s resting his nerves — ktiinu up and
lighting up a ( amcl — he's also cnj«>\iiig (he
mildness and rich tlaxor «»f a supremely enjt»\able
cigarette — finer, .MOKl I \l'l NM\ I l()HA( ( o^!
Carl says: "Camels kail with COW-punthers. "

THE ENGLISH SPRINGER SPANIEL <.//'.i.>
is speed), agile. He has a highly tlewltipt-d
nervcjus system. In fact, it s remarkably sim*
ilar to our own . ..complex. serisitiM. Hut,
unlike so many humans, this dog dtiesn t
ABUSE his nerves. Nor does any dt»g. ^X hen
a dog feels tired, he rests INSTINCTIVELY !
Vt'e humans often let our will-powef whip

^^^

EDDIE CANTOR ^ii.r,

rfi\

prn«>n«lity in a mil <>i iim mu-i,
Each Monday rvt-n tit i>n tlu i

Ntfwork. "^(1 prii | v | , ,11 p.

!, < - i

8 M) pni Ms 1 - -ci pm 1' s 1 .

BENNY GOODMAN King ,.l s»inK. ■>«•

— ^

*•

and the woriU'i Rffatvil swins h.ind tjch

lilt '.day iM-ninR iimt ihr f !«»|ij"i^'i,i Nvl-

,

Wiifk <l M)

pm 1 s I .N *i:i pm < •- 1 ':30

/^'

pm .Ms 1

f. .11 pm H.s.T.

'\

US on, i\».Af to the warning that nerves we
getting tra\ed. ^'et h<iw much more pleas-
ant, prtjfitable life can be %\hen nerves are
restiil now and then. I r\ ir . . . hrtak ilie
tension .1.1 I II' I I(,H r I I' A < AMI I :
\ iiu 11 Welconu (.uhlIs mildness — ruh,
ripe flavor. Smt»kers imd CJamel's iost/nr to-
baccos sooching to the nerves.

RECORD. HOLOINC

« 1 1 ni .1 n p J r J t, h u t e
luinpif. siane McMil-

lin ki '''i- niTv.

*tf 1 1 III: uitii

4^ ii%

rve»

fflilll IvO^liill

— li^hl up a

COSTLIE

THE TOBACCO WORLD

Vol. 59

JANUARY. 1939

No. 1

KCAl'SK of tlic illness of the cditoi-, this issue
of the T(»H.\( « 0 \Voin,i> is the product of piueli-
hitteis, who hope that tlieir hiuh i-ei»ar(l for
Ifobart liaiikius and their pfivileuc of shariuu
liis infectious enthusiasm for the tobacco industry
which he lias served loyailv and well tor many years,
will lie accepted by readers as an excuse for any delays
or other delincpiencies. We humbly crave youi- indul-
gence.

▲

S OXK of the funtlam<*ntal elements in planniiu?
a year's sales pr(»ui-am, advertisini;' cohh-s to
the fore auain this month and prompts some
l>asic thouuht> on the subject. There are many
definitions of adverti>inu, most of them beyond the
compreliension of oui- two-by-four intellect. Advertis-
ing is nutst often defined as printed salesmanship or
salesfiianship in print. That, of course, inises the (iues-
tion, "What is salesmanship/" The battle on tiiat sub-
ject luis been waucd for years, althouuh our own in-
terpretation is that salesmanshij) means ueftiiii; orders.
A salesman is, therefore, a man who m-ts ortlers, and
advertisin.y; is what helps him to uct them.

I.MI'LKIJ than that, even, is the ct.nception of
advertising that has built up many a biu busi-
ness: Advertisiiiu' consists in tellinii^ who you
are, wliere you aie, ami what you have to offer
in the way of conunodity oj* service; the onlv persons
who should not adveitise are those who have nothinir to
of1«'r. This definition implies much more than the
'"businesv t-ard" type of copy which is restricted to
name, addre«-x and type of business. It involves a proc-
ess of thinkinu that is the basis of many 8UWe>-ful a«l
vt'Hisiiiiif pro«rrams. It is a proros^ «»f cieatini; ^ood-
wilJ, or public aci-ptaiice, or reputation, for a product,
a service, or a company.

n

Ills cfuiceplion of advertising: is based on the
truth that the <uie thinu which disting-uiJihes
your eompany from all others is its character.
\\hat one per-onH thinks of \«mr companv is
porsonal o|,inion. Persnnal opininn midtiplied becomes
public opinion or reputation. So that the mc.st profita-
ble aim of advert isiim is to create a uo«m1 reputation for
yourself, your .servi.o, %,,ur |irodu<'t, or vour companv.
In other words. it\ not y,,ur charact.r reallv that pih'-s
up your Kali-.H lor you: it'- your reputati«»n. And, after
all, the beHt nieclium for creatifiic and maintainini,^ that
reputation is the viiice of a satisfied customer, "it is
thruuirli that me<linm ahun* that the lawver builds his
clientele ami the doctor his list u\' patient.s. For the
lawyer who advert isi-s otIierwiHe is a shyster and the

doctor a (piack. That is where the businessman has
an advantaue ov<'r these jirofessional men. He can
share with them the benefits of this priceless word-of-
mouth adveitisiuu, but he can uo far beyond that. He
can literally multiply this woid of-mouth advertising'
by reflect inu it in his )iiinte(l a<lvertisin,o'. He can in-
iect i)ito his adv<'rtisin,i»- a spirit which reflects the re-
actions of the people who u<'t satisfaction by dealinii;
with him, by usinu his products.

I BLIC relations men, whose name is legion to-
day, will tell you that a business is safe and
somid and durable only when it lias back of it
a safe and souihI and durable juiblic opinion,
^our a<lvertisinu ouuht to be directed larucly at l)uild-
inu' up the type of custonier who buys from you because
he respects you an<l ueiiuiuely admirr-s your product.
He is your friend. Von can trust him. He will be back
aji^ain and auain. He is the veiy coiiierstone of business
success. The paradox of this kind of advertisinu' is that
it means spending mtuiey to keep from spcndiuir money.
It is a method by which a pieference for youi- product is
formed, and in this it is diametrically o])posed to "bar-
uain" advert i-inu. This docs not, however, imply any
enctMiraucment to imide<|uate campaiuiis. It is just as
easy to waste advertisinu' money by undei-spendini^ as
by over-spcndinu. It is like savinu money on food. Tfyou
cut your footi bill past a certain point, your savinii-s ii;o
to the doctor. If you fail to use advertisinu to its
<'cnnomic limit, you fail to uet the maximum return
I'roni it. What you save, you lose — ^and, very likely, ten
times ovej-.

H\ IJiTlSlXtl i> uot an expense. It is one of
the tool> of salesmanship, ami, like every irood
tool, shouhl be usetl to the limit (»f its capacity.
^ There must, of course, be a ratio between what
advertfsitm cn>ts and what it returns. But so lonir as
this ratio can be kept economically feasil>le, the amount
spent for advert isinir should iro up and up. The adver-
tiser should be happy whenever he sees an opportunitv
to spend moie money for advertisiui:. And he sh(mld
feel that somethintr is wromr whenever he finds it neees-
-ary to thaw in his advertisinu horns. This is actually
ami literally true. In accordance with this conception
of advertisinu- it must be borne in mind that the buyer
is interested in himself, not in you. Business, beins?
.selfi.sh, is run for the l>enefit of the people who are in
it, and Ihei-e is no «piicker way to the heart of a busi-
nessnian than to promise to help him make money. In
dealinu with each othei- m(»st businessmen remember
this, but when they start out to address the public by
way of their advertisinu, many of them foruet entirelv
the sc'lfish interests of the other party to the transac
tion — the reader who is beiui,^ asked to l)uy the unods.

O^. 2*C^"f«^.reT"^n.iXtu'pt 'u.ued ^fnthf;' ^J^T ^-'- C«rpor.t.on: Hob.n B. H.„lo„.. Pre.ident and Treasurer; John Ce.r,. SeereUr,',
m^r- rorei,. II 7S . •«, Vlll a \I a . »""'»"'• Sub«:npt,on,. available only .0 tho.e engaged in the tobacco indu.try or trade. $1.00 a year 15 eeata a

«»r. lorei... $175 a year. Entered a. aeeofd-ela.. =..1 ,».„er. December 22, ISW. a. the Po.t 0«ce. Philadelphia. Pa., under the Act of March 3. 18^.

Convention Exhibitors and Prosfram

II K I'oIIowinu,- is a lis! of tirms haviiiii: attractive
I'xhihits at the soventli animal convention of
the X. A. 'V. D., held at Palmer Ilonso, Chicai^o,
.lannary IS to 21: Li,!n-,ii:ett «fc Myers Tol)aeeo
("o., M. Linknian iV Co., W L'orillartl ('o.,Marlin Fire-
arms (V>., Match ('oi]K)ration of America, M. & X. Ciji^ar
Manufacturers, Phili]) Morris «>c Co., McMahon To])acco
Co., Xational Vendors. Inc., Xew York Eve Protection
Co., Inc., Ohio Mateh Sales Co., Parodi "Cigar Co. of
Now York.

Christian Pe])er Tobacco Co., Planters Xut & Choc-
olate Co., The Postage Meter Co., Red Line Conmiercial
Co., Re.uens Liy:hter Corporation, Reynolds Metals Co.,
Inc., R. .1. Reynolds Tobacco Co., Rowe Manufacturing
Co., Bernard Schwartz Cisrar Co., Seeo Leather Prod-
ucts Co.. Semal Safety Razor Co.

Standard Ciijar Co., Stephano Bros., Sterlinji: Tool
and Stami>in- Co.. L. i^c II. Stern, Inc., Stewart «fc Mc-
(luire. Inc., StoiuM- Manufacturinii: Co., Su])erior Prod-
ucts Co., Sure Laboratcuies, Teirire-Jackman Co.

R. R. Tobin Tobacco Co., Trimount Com Machine
Co., I'-Xeed-A Products (Nuporation, U-XcmhI-A Mer-
chandisers, Lie., Lnimar Corpcnation, Lnited States
Tobacco Co.. I'niv^'rsal Ilandkerehief Co., Universal
Match C(Up(uation, Willson Sun (Jlass Co., William
Wriuley. dr., ( 'n., (Jeor^r** ZiiTerbhitt .ic Co.

American Ciirarettc iV Ciuar < 'o., American To-
bacco Co.. America's Own Match Co., Arrow Match Co.,
Inc.. AAV. I. Sales Corptuation, AiitoMatic Alarm Sys-
tem. Axtoii Fi-hcr Tobacc(» Co., .\lthol Cimib Co., Bach-
mann Bros., Inc., Layuk Ci^-ars, Inc., K, .1. Brach &

(r. If. P. Ciiiar Co., (lilhttc Safety Razor Co., Jean-
nette Steel Corporati»)n, Walter II. Johnson, Johnson
(juidy Co., Kdwanl Kat/.inu:cr Co., Kaywoodie Co.,
Kem. Inc., Larus tV Bro. Co., The Lektrolite Corpora-
tion.

Brown »k Williamson Tol)ac<*o Corporation, Bunte
I»r<is., Chasers. Inc., Coutrnss Ciirar Co., Inc., Consoli-
dated (%ar Corporation, Contin«'n1al Briar Pipe Co.,
Inc., The IIoii^- iti Crane, Curtiss Candy Co., Deisel-
Wemnier-dilbert Cori)oration, Diamond Match Co.

A. II. Dudreuier, fuc. HuPont Cidlojihane Co.,
Evans Case Co.. Federal Match Corporation, The Flem-
ini? Hall (V.., Philii> Florin, Inc., S. F>ieder & Sons Co.,
(larcia (irande, inc., (Jarcia & Veija, (Jeneral Cigar Co.

Wednesday, Januarv Is. UW, PJ.iMi Xoon — (1)
Official openin.y: of the ( onvention-E.xhibit l)y His
Honor, Mayor Edward J. Kelly of Chiea.i?(». (2) Pres-
entation of gift to Mayor. (3) Registration of dele-
gates.

Wetlnesday, January IB, 8.(H> P. M.— Carnival

^i'^hi Vn infcirnial '* icet-together** of all delegates

to the C<»nv«'ntion. h*efnshnients, prizes, entertain-
ment, dancing.

Thursday, January i:>, l».:!(i A. M.— First Execu-
tive Session of the X. A. T. 1). Convention. This has
been dpsignatod as "a morning with the secretarv.*'

Thursday. January 1I>, 2.:U\ P. .M.— Inaugurattng
Round-Table ( 'onferences :

I. Is the manufacturer's missionary man an asset
or a liability to the aggressive distributor?

II. What constitutes competent manugement of
and fair competition to the distributors' salesmen!

III. Can )>rivate brands of tobacco and other prod-
ucts be promoted successfully by wholesale distribu-
tors?

IV. To what extent should <listiibutors, individu-
ally or collectively, be instrumental in improving retail
mei-chandisiuii : ( .\ ) I'lfTectuatinii' ])i-i<'e stabilization;
(H) Sponsorinu and aiding in the enactment of appro-
priate legislation; (C) Improving merchandise tech-
nique!

Thursday, January 19, .^.Ol) P. M. — Junior Execu-
tive Session.

Thursday, January 1<), 8.00 P. M.— Exhibitors'
and Manufacturers' Xight.

Friday, Jamuiry 20, 9.;]0 A. .M.

1. The Second Executive Si'ssiim of the X. A. T. D.
Conventi<ui. (Seveial subjects acted upon.)

2. Ad<lress by Willis .1. Ballinucr, economic ad-
viser to the Fedeial Trade ( 'onmiissicui, who will H|jeak
on "Anti-Mono|i(»ly Invi'stigation."

'^. Sales Manaueis and Intia-liHlustry Forum.

4. Proposed legal au:reement among wholesale to-
bacco distributors e?iibracing trade practice rules as
approved bv the Fi'deral Trade Conunission, Septem-
ber 2s, v,m.

Friday, January 20, 2.:^ P. M.— Round Table Con-
ferences.

I. Does .Manufacturers* Xational Advertising in-
crease or diminish the importance of the wholesale to-
bacco distributor f

II. The ciuar industry — does it olTer any future?

III. Mechanical merchandising — how can it be
managed efliciently and successfully!

IV. Do the ojM-ratious of a <Iistributor justify a
close door-to door coverage and canvass of retail deal-
ers f Or does he successfully perfojin his fuiu'tions by
callinu: on the most accessible and desirable outlets!

Friday, January 20, (1.00 p. M.— Special Session of
Tolmcco and .Mlied Indu-tiy. Salesmen of Chicago
and Vicinity.

Friday, January 2n. .s.;;() p. M.— Beauty Contest.
Crowninir <»f Chicauo's "Tobacco Qnwn,** Entertain-
ment. Dancinir.

Saturday, January 21, !».:io A. M.— Round-Table
( 'onferences.

I. "V^hat fan be done toward systematizing and
mo<leriiizinu a wholesale tobacconist *8 operation!

II. Ib)w can a wholesale distributor successfully
merchandise sidelines antl sundries which include pipes,
candy, blades, uH'rchandising deal an<l a variety of
other items?

III. Does the premise that there is a tendency to-
ward localiztnl distrilmt ion— which nu-ans that the local
distributor can oj»erate more economically and success-
fully than the larice distributor who covers a large area
—constitute a threat to the lanrer distributor!

.Saturday, January 21, UM A. M.: 1. Third and
eluding -• sinn of tin* X. A. T. 1). Convention. 2.
A(hlress hy Merle D. Vincent, chief of hearings and ex-
emiitions section of tin- Wage and Hour Law. .T Re-
port of committees.

Saturday, January 21, 2.oO P. M.— General meet-
ing of all convention participants, including reports of
round-table conferees.

Tkt Tobacco World

Tobacco's Outlook for 1939

IT 11 the year VXIH ended, it is encouraging to
note that the trend of jicneral business activity
for the last sev<>ral months has been mod-
erately upward as <ontrasted with the sharp
d«*cline in the latter part of V.V.M , reports the "Tobacco
Barometer," published by the Tobacco .Merchants'
Association of tln' Lnited States. Continuing through
the first live months of LKJS, the recent ""recession
reached its low point in June, from which time on in-
dustrial production indicate<l a gradual but unmistaka-
ble improvement.

So far as the tobacco industry is concerned, the
yearly totals show that the <lemand for its producbs has
been exceptionally well nuiintained. As a nudter of
fact cigarette withdrawals in the year endin- November
."'0, 1!>.'>8 (the December fiunres being unavailable as
yet), show an increase of about .T).'} niillion over the
previous year. While this increase is relatively small,
amounting to only 0.22 per cent., the year's total never-
theless established a n«'W hiuh mark of H;:j,(il!),248,r)76.

The t<it{d withdrawals o\ smoking and chewing to-
bacco also slightly exceeded those of the previous year,
while snutT withdrawals reflected an increase of ap-
pro .xinuOely 2';{ per cent.

Cigar withdrawals, however, were slii^htly dowm,
the year's total (»f .VJ27,rj72,Ln being som<"4 per cent!
below that for the previous year but virtuallv on a par
with the total fiir tin- year ending Xovend>er .'JO, V.)M,
All classes of cigars shared in the decline, but the
fall-ofT in Class A, which constituted over H^ per cent.
of tlu' total witlulrawals, was only alnrnt V \ per cent.,
while Class C, which accounted for about !M ^. per cent,
of the total, declined approximately 12 per cent.

In the faci- of the conditions that prevailed gen-
<*rally, the industry's record as a whole is a most en-
couraLcing one, while the continued improvement in gen-
M-al business activity, reflect iiiir in<'rea.sed consumer
buyiiiLT power, makes the present business outlook for
L>.*»!> Jpiite favorable.

State Tax Legislation

In the new year Just begun some 44 State Legisla-
tures are scheduled to meet in regular .sessicm, and the
tobacco indu.^try will probably be faced, as usual, with
the introduction of many new tax measures. However,
considerabh' eiicouraurement may, of course, lie derived
from the fact that tobacco ta.x proposals have been
previously rejectiHl— in some instances at as many as
ten successive sessions— in the States where taxes on
tobacco protlucts are not now in force. And with the
trade in everj- State acting as a unit in vigorouslv op-
IKJsing such taxes on top of the existing Federal levies,
there is every rea.son to ho|M? that the tobacco industry
will be wavcHl from any further impost of this character.

The Congress

In the Congress, the President has alnadv sub
mitted his budget mes.sage calling for a total outlay of
about lU billion dollars for the next fiscal year.

As regards taxation, the President said, among
other things:

'*I believe I am expressing the thought of the most
far-sighted students (»f our economic system in saying
that it would ^ unwise either to curtail expenditures
sharply or to inifiose drastic new taxes at this stage of

Jammry, /pjp

recovery. P,ut in view of the addition to our ])ul)lic ex-
penditures involved in the pi-oj)osed enlarged national
defens<. program and the program for agricultural
]>arity payments, for which no revenue provision has
yet been made. I think we might safely consider mod-
erate tax increases which would a|)proximately meet the
increased expenditures on these accounts. It should be
added, however, that it is my linn conviction that such
new taxes as may be imposed should be most carefully
selected from the stand|)oint of avoiding repressive
effects upon purchasing powei."

The President also recommended re-enactment of
the e.xistin.u excise taxes which will expire this year.

The Xational Fatln'r's Day Committee, at 32 East
OTth Street, Xew York City, jias been swam|)ed with
rcMpu'sts by firms using direct nuiil, as well as Xew York
newspaper and mauazine advertisinn', for the official
Ilowanl Chandler Christy illustration, which is to be
unveiled in .March at the Xew York World's Fair as the
f>ni(-ial Father's Day symlM.l. The idea of havinu^ one
desiicn repeated as often as possible, has appealnl to
advertising: men. It seems to he uppermost in most
miiKls that a simple illustration done in the masterly
fashion »»f Howard Chandler Christy will better em-
blazon the idea in the public's mind than manv conflict-
ing illustrations.

Howard Chandler Christy's success, in doing ex-
actly that for the Liberty Loan and Hed Cross drives,
as well as in many others of national importance, has
impressed many advertising: executives with the efficacy
of .Mr. Christy's style in i^n-ttimr t<» the hearts of the
American people simply and sentimentally.

The conmiittee has arranged to fill ail requests for
irlossy prints of this paintimr without charge. Appar-
ently this desii,ni will appear fre(|uently in retailers' as
well as manufacturers' advertisinu to the consumer this
coming sprinu-. It will aso be used hy many firms and
trade associations in their house organs.

Father's Day falls on June IHth this vear.

NOVEMBER EXPORT TRADE

Cuban tobacco ex|»orts to the Lnited States in Xo-
%-ember 1938 consisted of the f«.llowing leading items:
87,988 pounds of wrapper tobacco, valued at $146,828;
12*nf)2t> pounds of filler tobacco, valued at $r>r),439 ; :>70,-
7jm pounds of stemuHMl leaf, valued at .t42(»,;]68; 2()7,-
786 pounds of scrap, valued at .$59,887; r)3r>,970 cigars,
valued at $00,843; antl 117 pounds of smokim? tobacco
valued at $8(1; the total value being $753,445, or slitrhtly
less than $7f)9,l91 in October 1939, but 11 per "cent
higher than $b79,(m2 in November 1937.

LOUIS KLEIN

Retail Tobacco Dealers of .\merica, Inc., announces
with profound regret the passing away December 27 of
its esteemed executive vice-presideut, Louis Klein. Mr.
Klein, who was a leader in the retail tobacco business
in Cleveland, Ohio, played an important role in organ-
izing Hetail Tobacco Dealers of America, Inc., back in
1933, and, since then, held the oflRct* of (\\ecutive vice-
president. He was also a member <»f its board of di-
rectors.

Ciaar Production Rises in November

Entire Increase, Hoiificr, Is In
Class A; All Other Classes Lose;
Cigarettes Show Gain of 5,63^

l(iAI\ w itlidi-awals for tlu' month nt' Xovt'inbcr

ill tlu' riiitcd Stall's took an nncxin'i-ti'd Jnni])

iijtward of 4.70 pel' i-t'nt. avvv the con-csixmd-

inu jicriod of last >('ar ai*c(»rdinu to statistics

ri'Icascd l>y the Tobacco Mcrcliants Association Ba-

roinotci'.

The sul>stantial inctcasc disclosed fimircs sliowinu'
iiiorc tlian 2;>.(i(l(i.(HHl ciitars in all classes were prodnccd
in c\ccx> (it withdrawals made in Xovcnilicr. Il>."i7.

('hi>s .\ ciuais nuuh' a nott'worthy showinii by hop-
ping- up their pnuhu'tion 7Xr2 per cent, ni- nvei- :;i,(i()(),-
(MM), while other classes weic reieuated to minus col-
umns.

IMiilippine Inlands import> fell ofT --ome (;j7l>,s:]2
for a percent nm decrease of 4n.!>1 in the ciuar lield and
their ciuarette ontput also took a -harp curve down-
ward. Ciuar pi«>duction in Puerto h'ico was still las;'-
'/lUix behind last year's production.

Ciiiarette mauufacturinu more than made up for
last montii's slight lo>> by >ho\\iim a decided suiuc to
the front of the industrial picture durim; Xovember
with a plus r).(KJ per cent, or 71!»,;I7l',M4 additi(»nal cig-
arettes to tobacco markets.

C'hewinu- and smokiim tobacco acconnted for an in-
crease of iH-arly 4,<MM),n(Mi ponnds foi- a percentaue uaiu

)taltr\ set-back for the month when they turne<l up with
a loss of U.72 pel' cent, or l*.'l,-4r) pounds less.

I/ittle ciiiars lost some SiT),!)!))) durinu the iiKUith
for a .').(il> per cent, decicase in a declininu maikel.
None at all were manufactuicd in the riiilippine or
Pueito iJican teiritories. Ciuarette withdrawals
showe<l an inci-ea>e on tin- Puerto liican market over
la-.t year by ir)!»,(l4(i, while manufacture of laruc ciuar-
etle> incieax'd by L"J,(l(i1.

.Ml clas>es of ciuars other than <'lass A wero
sliuhtly under last year's Muures on the local frcuit but
the>e prodnct- reacted vaiiously in impoitati(Mis from
the I>iand pov-r^vions. '^Fhe Philippines showed a fair-
si/.ed increase in ('las> !> but sustainetl losses in other
clas>i'>. Pueito liico, <Mi the other hand, reported in-
ci-eased withdiawals in (lasso .\, (' an<l I) with only
a small los> in Class l» ciuars. The\ manufactuicd no
( "las> K urade. With all cla>-( > tabulated Pueito Hico
has a net uain for the month while imports from the
Philippines slumped.

Dnrinu the mouth cigarette producticui went over
the thirteen and one-half billion mark which not only
8Ur|ias>ed last year but was also a noted inerea.se over
the jMi'ci'dinu month.

( Mhcial statistics relea.sed for Xovember lOoH with
their comparative Hgurua I'ur the same month in 1937

OI J<,<4<,nif) pounds.

Product

Clab^ A—

United .^tates

Philippine l^laiid;, . , .
Puerto Kico ........

rMiUti pro

November, 193

440.754.320

9.734,010

315,200

luct
8

+
+

+

ion exptiiieucml a

Increase or Decrease
Quantity Per Cent.

31.2J<i.K(,o 7./, J

(..722.985 4U.85

27.200 9.44

are a- follows :

Product

1 iital .Ml Llas.se>:

United .States ....
rlulippnie Islanils .
A'uerio Kico

Grand Total ...

LitlU Cigars:

riiiteiJ States

Philippine Islands
Puerto Kito

Total

Cigarette-

United .states

l'hili|ipim- Islands .
ruertii Kico

Total

I.ai Ki- CiKaiettes:

United States ....
Philippine Islands

Puerto Rirn .....

lotal

Snuff ( Ihs > :

-Ml United "^tat« -

1 (ili.ji I i . 1 ( In u in^ ancl
Smoking) ll.s

I'nited .'stales ...
Philippine Islands .

Total

November, 192

515,858,070

y,/93,394

418.350

18

+
+

+

+
+
+

4-

-f
+

+

+

Increase or
Quantity

23,172,662

6,779,832

43,050

Decrease
Per Cent.

4.70
40.91
U.o5

526,070,614

15,477,387

10,436,480

3.23

Total

450.803,53<J

24,525,0/5

5.75

825,383

United States

Philippine Island > . . .
Puerto Rko

4.484.887
1'..310

11.5<H(

703,689
1.957
3.^

13 5'.

5.00

• ■ • ■

• • • •

15,477,387

825,383

SM

Total

4.512.r,97

704,732

13.51

.. 13.5o5.f. 02.337

8.550

654,840

.. 1,- .^ ..%7-'r

719,372.814
103,850
159,640

Class C—

United States .......

Philippine Islands , . .

64.806. HHi
38.912
90,650

<>MiJ32
13.«W
18.450

8 60

5.63

Puerto Hit (1

719,. , ,

5.63

Total

64,995,Wi2

6,329,182

8.87

454.9(K3
45,lol

I5,89fi

10
22, WjI

362

• ■ « •

Class D—

United States

Philippine Island- . . .
Putrti. Kim

4.773.640
4.176

842.910

41.215

I.WMJ

KrOi

SOT.Odl

M.547

8.35

•

Total

4,778,8 lo

883.125

15.60

3,193,2<^o

23,245

0,72

Class E—

United States .......

Philippine Islands . . .
Puerto Rico

979.723
186

l/.",8o7

14.63

27.747.016

3,949,810

16 60

Total

979,^

171.556

14.90

27.747.olo

3,949,810

16.60

6

riw 7../HI

iO U'orid

PICK A WINNER!

'^Manilas are worthy merchandise.

99

^^Manilas have all the values indi-
cated by the price at which they
are sold."

'^Manilas sell surely and steadily.

99

^^Manilas are dependable.

99

Such in substance, is the testimony
of many dealers in various parts of
the United States*

'^Those who show^ Manilas obtain
satisfactory business.''

List of Factories and Importers on application to

THE MANILA AD. AGENCY (C. A. Bond, M^p.)

220 W. 42nd Street, New York, N. Y.

/amnory, ig^

Loss in Cigars 3.54 Per Cent, in 11 Months

X KLKA'KX inoiiths i-oinpilation uf withdrawal
liuint's iiiadi' (luring the I'liirtMit calciKlai' year
l>y Tile Tohac'i'o Mcrc-liaiits Association I>a!'oiu-
I'tcr ill tlu' riiitt'd Statt's reveals that all classes
«>t ciiiars suffered los>es as coiii|)ared with production
ot hist yeai'. The ouIn- increases wei'e found in ini|»orts
in Classes (' and K ci-ais from the Pliilii»j)ine Islands
and Class I) ciuais from I'uerto liico.

(luarette out]»ut uained !>S7,(il7,!MM) durinu- this
period foi- a )»i'rcentaut' increase in )n-o(hiction of ().(>()
])or cent, while little cigars wen- still tauiiinu aloni; with
a 2:).n:) jier cent, decrease or a loss of a litth' more than

('lass A ciuars wer.' 1(IS,(;;m),S«;() under the same
permd of last year l)Ut their lU'rcentaue drop onlv totals
:Kr)4 per cent. A noted inerease was reveale<l in "the No-
vember statistics of this made and they are expected
to he hohlin- their own when linal liuures are received.

As a whole imports from the Philippine Islands
and Puerto Rico weie still ti'ailinu last veai's mark al-
thouuh withdrawals there are not so fai- hehind their
belled u led ijuota.

Locally Class K ciuars took close to a 4,()(K),(HM)
plmiirv down for a loss of T..')! per cent, i'roductioii in
this category for the year thus far has reached 4(;,J)7!»,-
60 / .

Class C and 1) are having ditliculty reachinu their
maik of last year and each refiorts lo»(> of 1117 ju-r
cent, and 12.4.') per cent, respectivelv. Class c ,„•,)-
duced .).s,4n(j,4H(; ciuars Jess while Clas's I) showed a loss

woo"*''r''''"i'^*"*" ^''''"'^ ^^' '''"'""^ '''^^' •* fallinu otr of Sm,-
bJo disjilayed the largest jjercenta^^e decreas.- of 1780
per cent. The total loss of all elas>e. o\cr eleven

months was oidy .').r)4 ])ei- cent, however with a urand
total of 17f),.")(ii ),();)() ciuars less. This fiuure is enhanced
when import statistics are considered.

Ciuarette iiroduetion seems to he steadily u'oinu on
toward a new hiuh-water maik in output as predicted
several months auo hy Tiik Toi5A( co Woia.i.. During the
calendar pei-iod frctm danuary 1 they have hit the tiiiure
of ir)l,(H)'J,r)i:),:j(i() for an eleven months p;mu of ().()(»
pel' cent.

Snuff consumption has surprised hy ipiietly iroinu*
alonu and showing an increase of l.L'o'pcr cent. "over
last year. With a total withdrawals of .TI,IJ:{r),i;<>S
pounds tln-y have exceede<l 1!>;]7 output hy some 4(10,000
jfonnds.

Although smokinu and ehewinu tohacco have heeii
sliuhtly oir all year Uiey reirist<'r an inciease over the
eleven months span and, makinu a rather poov start,
they are winding up with the winners. Thev pr<»duced
L»SL\L'oo.L*4n pounds for an increase of over two and a
half nnllion pounds. This -ives them a jtlus 0.!>l' per
cent, foi this period.

Little ciiiars have failed tc» recoup theii' earlier
losses and are far hehind last year. Thev sh<»w a Io88
of L»:!.o:, p<.r cent., which is 4:i,;il>4,o:)S ci-ars less than
the same period in VXll. Thev produced a total (.f 144-
()0S,2S(;.

Philippine Island imports uained lli,14!» Class C
an«l h;o:{ Class K Init were hehind in other classes.
Puert(. Hico uained only 4000 in Class I) hut sustained
losso in all other urades.

Figures covering withdrawals from .Januarv to
Novemher IH.Is as compared with the .same period in
IH'O a re a"" 1 oilow > :

Product

Cla- A—

l'nit(.(i Stato . .
Philippine iL^land?
Puerto Rico ....

Total

Class B—

United States . . .
Philippine Island-
Puerto Ricu . . . .

Total

Class C—

United States . . .
Philippine Island-
Puerto Rico

Total

Class l)^^

I'nited States . . .
IMiilippine Island-
Puerto Rico , . . ,

Total

tf

Class E—

United States . .
Philippine Islanfl-
Puerto Rico . . , .

Total

1st U Mos.
Cal. Yr. 1938

4._'5'i.((45..M.U

P.9.994.955

1.1UI.725

4i,,979,(M7
81.913

H5,»HKl

47.i4f,,5iO —

4'i4,306,91(,
261.719
627.150

33.fi3o.(W^

255,629

4.(MMi

33.895,098 —

3.7.18.859
18.143

3.757.002 —

Increase or Decrease
Quantity Per Cent.

IU8.0W.81.O

4.939,2{)5

23.953.950

4.427.142.040 — 137.584.015

3.8P..447
281.361
<i93,80u

4,79I,6«J8

58.406.48*1
12.149
63.K(Mi

465,255.785 — 58.458.

.^/

4.785.364

94.914

4.(MMJ

4,876.278

— 809.893

+ 7.60.1

2.49
2.82

3.01

51

9.23

11. 1"

11.16

12.45

12.58

17.80

802.290 17.60

Product
lotal All Classes;

United States . . .
I'lulippine Island^
Puerto Rico . . . .

(jrand Total . .

Liiilc CiKars:

United States . . .
Philippine Island-
Puerto Rico . . . .

Total

CiKart ttes:

United State- .
Philippine Island-
Puerto Rico

1 otal

Larjte Cigarettes:

United States . . . .
Philippine Island-
Puerto Rico

Total

Snuff (lbs.):

All United State-

Itthacco (Chewing and
Smoking) lbs.:

United States . . . ,
Philippine Island-
Total

Ist 11 Mos.
Cal. Yr. 1938

4.8y4.7c.(..811

170.612.359

1.817.875

4.977.197,045

Increase or Decrease
Quantity Per Cent.

17o.5oy,u50 3.54

5.295,7^ 3.01

24.707,559

206,512,328

144.608.286 — 43,324,058
— 1,506.680

144.r»nH.286 —

151.ito2.515.3(KI 4.
1.589.473 +
3.914.120 —

44.830,7M

987.617.990

822.2»Ki
45l,f»80

1 51, OW.Ol 8.893 + 987.^8.516

2.482.f,75 —

161 —

279.011 —

354,983

3.671

13,489

2.761.847 —

372,143

33.935.6% 4.

401,296

282.200.246 -4-
47 4-

282.M0,293 +

2.576.067
36

2.576,103

3M

2305

23.66

0.66

» • * *

n t,i,

12.51
'4'ii

11.87

1.20

6 92

0.92

The Tobaeco WoHd

New Yearns Resolution for
Jobbers, Salesmen and Dealers-

"Don't Put Off
Humidifying!"

Smokers who appreciate good cigars won't stand for dry cigars.

Don*t let dry cigars turn away business. Don't let your customers go down
the street! Get the business yourself! Make sure your stock is properly
humidified. Make sure your cigars are in good condition always.

Artificial heat is usually dry heat. Overcome this dryness! Humidify now!
Make the most of winter by keeping your stock in better condition than
the stock of your competitors!

Put your cigars in a humidified case every night. Keep your customers
satisfied! Keep them coming back to you for cigars the way they like them!

Sell GOOD cigars in QOOD condition

ELPmjcro

yorreal enjoyment

G JI.P. Cigar Co., Inc.
Phila., Pa.

HOW INDUSTRY'S LEADERS
FARED IN 1938

or? till* liist year since eipircltf production
iM'i^an to recover t'roni the depn'.-^sion, li'MH
failed to maintain the onward rush toward new
hiirh I<'Vels <>t' output. As a n'sult, nui.jor coni-
panioH in tlie tobacco industry, workinir with sustained
cost of raw materials, and increase<l operatinu ex-
penses, found earninirs showinir no marked im|>rove-
ment over the VXXl record. Some probably will be
nhown later to have had snudh'r earnintrs than in IIKIH.

Kecord of ci«(arette companies was not unii|ue,
however, for citjar protluction also bo<j:u:ed down durlnir
the year, fallinir under the VXM total, relates th«' "Wall
Street .Journal." Manufactured tobacco, which is nuide
^ an extensive list of companies, showed virtually no
change from the WVXl record, the production for the
first eleven months of 19.38 bein^ only 0,92 fx'r cent.
above that for 1937,

Snuff, the prcKluction of which is coneentrated in
the hands of three companies, shown 1 a modest in-
crease up to the end of Xovember. Here, too, how-
ever, rising costs wiped r»ut the bulk of the advantage
from the greater sales volume.

In the cigarette division of tln» tobacco industry.
by far the most important secti<ui of the total l»usines.s,
individual company trend- were mi.xetl. With the total
production for the year showinir little, if any, increase,
sharp gains in output, such as were nMorded by some
companies, must inevitaldy have been taken from
others.

January, /v?v

Increased sales obtained by both American To-
bacco Company, on its Lucky Strike cii^arette, and by
Philip Morris & ( onipany, on its ciirarette, toircther
with the u:r«'ater vohune accounted for by the ten-cent
brands, were reconled at the expense of leaders.

A survey indicates that sab's of Camel ciirarettes
by Reynolds Tobacco have cased down durinu; the year
from above L'> per cent, of the total busincs at the end
of 19.17 to under that tiirure at the end of 19.38.

( 'bestertield's sales by Lii^i^ett & Myers, according
to the survey, were runninu: at about 22 per cent, of
the total at the end of the vear, against somethinu over
2.3 per cent, at the end of'l937.

For Lucky Strike the trend was in the other direc-
tion, however, and indications are that sales of that
brand at the year-end were runnimr at the rate of bet-
ter than 24 per cent., against around 2:> per cent, twelve
months earlier.

Philip Morris & Company als<i had a sliar|) in-
crease, with indications that its sales for the year would
run around nine billion, an increase of 2i) jier cent., to
put its >liare of the total near 6 per cent.

Total sales of all brands of cigarettes by P. Loril-
lard in l!»,38 were probably above those of 1937, al-
though sales in l!>37 were stiniiilat"<l shar])ly in the
first half year by a puzzle contest which the companv
conducted on its ( )Id (lold ciirarette. This year the total
volume of cigarette sales lias bei-n assisted by the new
Sensation brand, retailing at ten cents a |>ackage. Old
Gold sales have been under last year's total, but other
brands have more than made up the difference. Last

(Continued on Page 11)

Glycerine's Value in Processing Tobacco

By (iKOIUilA LEFFINiaVKM., Ph.D.

HAT lilyeoriiu' has unique vahio in the prot-css-
inir of tultat'i'o is a niattor of livnoral know Icilnc.
It is inti'it'stinii-, howi'vor, to traci* hri«'fly the
extent of a|)))li('ation of this single product and
to note its now jiraetieally universal utilization as scien-
tific study uncovers further advantaires of use.

The necessity in the tohacco industry for an effi-
cient hydroscopic aii:ent to ensure the finished product —
cisfarette, ciuar oi* pij»e mixture — reachinu: the consumer
in a fresli, moist condition and to iruard airainst a hot,
harsh, irritating smoke has hrouuht alxuit a steadily
g'rowinu use of i,dycerine as various manufacturers and
their chemists have ex|)erimented to tind the ])est ])ro-
cedure for ensuriuir satisfactory results.

Every tohacco manufacturei', of course, has his
own special formulae — tiade secrets for maintainiuii:
the hiiih standard of his linished ])roduct. It is always
of interest, however, to know more o*" an intrrcdient
which has proven its value ueneraily in the composi-
tion of formulae for s])ecitic puiposes.

Reviewinir rafiidly the ))roperties of ^lyeerine
which adapt it especially to its use in tohacco |)rocess-
inu. it i> a clear. col<>rle-.> viscous liqui*! with a sli«>htly
sweet taste. It is confide rahly heavier than water with
a specific irravity of 20 deu:rees Centigrade and a hi«<h
boilinu tem)»erature of 21M) dei^rees Centigrade. This
•rives uiycerine tin- further advantau:e that it does not
evaporate reatlily even in extreme climatic conditions.
Furthermore, it docs not turn rancid.

Tlie most outstandiuir characteristic of jrlvcerine,
however, is its hyuroscopicity, wliich enables it to ab-
sorb moisture from the air, and under certain condi
tions, to ahsoib up to .")() jmi- cent, of its own weii,dit in
water. This proiierty of ulycerine makes it invaluable
wherever tlie moisture content must l)e maintained or
where excessive dryiuir is detrimental.

Such moisture c<iutrol. of course, is an especial es
sential in the processinu of tohacco, sinct* scientific re-
search has established that few materials are so
affected by chani^es in humidity as tobacco. I'nder cer-
tain conditions tobac<x» will take on moisture until it
contains as hi.«rh as 3U per cent., while on the other hand
after iv/m^^ it is too dry to fiermit df handlinj^ without
crumldinu-.

(ilyceiine further acts, throu«,'h its uni(pie prop-
erties, as a preser%ative in preventinir the fornuition of
tobacco mold after packaj^ing. In this way its use tends
to cut down the factor of loss from ciirarette spoilaire
for this reason.

Still another point which must not be overlooked In
a consideration of the various ehara<*teristics «»f ltIvc-
erine which have recommended it tor such wide usjii^e
in the tobacco field is that irlycerine i< a natural prod-
uct which, in addition to its effectiveuess as a humectant,
has been scientifically proven to be entirely safe for
use on any part of the body, r»n mucous membranes,
even on the eye.

The easing mixture, which is usually regarded as
the most imiKjrtant single point in tol)acco processing
for <|ualit> results, offers the principal application of
glycerine to utilize its advantages as a huniectant. In
many ca>es the modern casing mixtore consists only (»f
to

glycerine and water, although in specific instances other
ingredients are added according to the formulae of in-
dividual manufacturers.

The amount of glycerine required for best results
varies accoiding to the season. I sers report, however,
that with from 2 to .'^ |)er cent, glycerine incorporated,
shredded cigarette t«»bacco is rendered as pliable and
as easily handled as tobacco leaf with a l.J ])er cent,
moisture content.

Cigar fillers and pipe tobacco are also kept moist
and full by the use of glycerine, |)ipe tobaccos generally
speaking containing a larger j>roportion of fiavoring
agents. The presence of the glycerine in the |)ipe to-
bacco has an atlded advantage to the consumer since it
acts to keep the tobacco fresh after it is transferred
from the ]tackage or tin to the usual ])ouch or canister.

Another use for wliich the tobacco industry has
foniul glycerine a valuable aid is in a flavoring mixture
for scrap tobacco which is intended for smoking. The
following flavoring formula for units of one hundred
pounds of scra|) is recommended by a well known to-
bacco processing expert :

One pound glycerine, one pound white sugar, one
and one-half pounds maple sugar, one and one-half
jiounds honey. F(»ur to six pounds of water may be
added to this mixture, depending on the condition of
the tobacco.

A paramount consideration of any ingredient to be
used in tobacco processing is its purity, non-toxicity,
anrl wludesomeness. In tliis connection, therefore,
important ex|ieriments eonducte<l at the University of
Chicago on the physiological efTeets of glycerine taken
into the human body in food and drink are of practical
interest. These experiments, under the direction of
Dr. A. .1. Carlson, showed conclusivelv that glycerine
can he taken internally even in very large quantities
without any ill effects. Besides the positive function
of glycerini', therefore, there iv nnw th«» experimental
knowledge that it cannot have any incidental, undesira-
ble efTeets.

Clinical tests of especial interest to the tobacco in-
dustry have established that a cigarette which does not
c«»ntain any hygroscopic agent is more irritating, even
when fresh, than one in which such a moisture-retaining
ingredient is used.

SOUTH HILL BOARD OF TRADE

As has been the custom in recent years, the South
Hill Tobacco Board of Trade held its annual meeting
immediately f«)llowing the close of the last sale of the
season.

After flu- transaction of the regular business of the
hody, ('lection of officers for the next year was taken
np, with the result of re election of all present incom-
iMiits: Ibnry L. Fowlkes, president; R. i\ Crowder,
viie president and James C. Jessup, secretary-treas-
urer. This makes the ninth consecutive term to which
Mr. Fowlkes has been elected to serve as president.

Thomas H. Harrison was again employed as super-
\ isor of sales.

(Cn}ititti(((l From !*(lf/r 9)

year Lorillnrd produced almost exactly eight billion
cigai'('tt(S.

Because i)\' the irregular fiend of cigarette ]»roduc-
fion in the last six imiiitlis of 1!>.')S, forecast of the pos-
sible trend ill !!'.')!> is diniciilt. However, while the in-
dustry is relatively <lepressioii proof, its ]>rospei*ity is
to a certain extent tied up with g«'neral business activ-
ity.

In li'.'iS, tlure was a movement toward "roll-your-
own" siiiokiiiu tobacco which takes volume away from
the mamifactuiMMl cigarelte business, ll' biisiiK'ss coiuli-
tioiis should improve siiniciently to remov«' the need for
economy from that portion of tlu' smoking jtublic now
rolling its own cigarettes, total v«>liiiiie of manufac-
ture<l cigarettes might well move forward again.

With better business, it is jiossihle, too, that the
higher priced cigarelles might recover some part of
the total business from the ten-cent hramls. This, of
course, would not affect the t<»tal volume of ready-made'
cigarettes, but would uivc the industry a greater vol-
ume of tin' higher prolit biisiiit-- and be beneficial to
tlioM' companies which •'ii'^age in that liehl.

\'olume, appai'tiitly, will be the determining factor
«»n 1!'.')I> prolits, for lillh' change in toliacco costs is
likely. (Mher costs may rise, as they did in lUMS, but it
«'an be compnted that there iiii'^lit he a iieuligible reduc-
tion in the e(»sts of tohaeen fui" ciuarettes.

Thus far in the marketing seas«ui foi- the 19.18 to-
bacco crops, prices have shown hut little change from
tlu' averam* for th<' 1!>."I7 piie<'. I'Mue cured tobacco has
av«'raged just over '2'I cents a pmind against an average
of 2'i.I> cents a pound last year, while bin ley has aver-
aged fra<"tioiially oxt-r L'li cents a pound against a 2f)-
cents-a pound avira-^e for the 1!K!7 crop.

Trend of tohacco prices this ^easou, however, has
been for the Im'sI prices to he ieenrde<l early, and to ease
off as the sellinu •-< a-oii proLire>se«l. This is dm' to the
tobacco inarkeiiie^ vN^tim of the g«»vernment which
^ives <|Uotas to tnhaceo growers.

WIh'u this ipHita has been filled, the farmer pays tk
tax of '){) per cent, of the selling price on all tobacco
sold aliove the quota. Xatiiiall>. therefore, the grower
has sent his best tohacco to market first, to get that in
uialer the quota. If he has to pay a tax of .'ill per cent,
of the sellinir price, he wants that to be on the cheapest
tobacco he st'lU.

(hi the prices to date, which may wmk lower, the
en-^t ledmtion for lI'.)!* figures out to only 1 10th of one
cent per thousand cigarettes.

In view of the fact that there art* so many vari-
ables, siu'h a- ehanue-« in prices tor ditT«'rent grades
within ihe axeraue l(ir the entire ciop, and larger pur-
chases than normal in certain seai-, the indicatt^
changi' in costs is su slight tliat it can well be ignored
for l!»."l<», unl< s> later niarketinus bring about a wider
change.

PUERTO RICO PURCHASES

IHHTO inco'S purchn-e^ nf American made
cigarette^ during ]\K\s ^d ,-, ,,ew high record,
totalliiiLr I" per c-ent. above the previous hi.i^h
shipments uf VJ'M), .-e curding to a statement by
the Puerto Uican Trade ( ouncil, based on l. S. Depart-
ment «»1 < 'onnneree flares.

Janmit\, /v?y

POPULAR LEADERS

By P. Lorillard Co

BEECH-NUT ^^^

UNION

LEADER

OLD GOLD

Double Mellow

Cigarettes

LILLIAN

2

for
5*

ROCKY
FORD

MURIEL

Senators

Si

VAN

BIBBER

5 for 10«

SENSATION
20 for I0<

BETWEEN THE ACTS

1 5 « pkg- of ten I

"The island bought <s:5<;,(HMi,(HMi eiuarettes, valued
at $:U!>'M)n( I during the year," the report states. "The
inerease in quantity was 14 per eent., while the value
was K) p«'r cent, uieater. Shipments durinir l>ee<Mnber
wer«' the largest for an> month in the year, exeept for
February when (h'pleted stocks were replenished fol-
lowing the fi\e-week shipping strike. Sales to the island
have heeii iiK lea-iiiu steadily in the last twenty years,
and in 1!»."»H were twice as great as in 1!>2!>.

"The fjuantity of stemmed leaf tobaeeo sold to the
btates hy Puerto Hieo during the year was lS,;ir)(),(MM)
pounds, or 2 per eent. greater than in the year before,
and was valued at !f S,OHf M M K). "

EMPLOYMENT FIGURES

Hniplovnient in the tobaeeo indiistrv, as shown bv
"statistics of tlu' Bureau of Labor Statistics for the month
uf Octoher, 1!KIS, has Just been made public and is as
follows:

rhewing and smoking tobacco ami sniitT factories
showed employment at 'u .1 per eent. during October,
1!>.'»H, a <leereas<' of 7.S per cent, froni September, 19^,
an«l <>.4 per eent. from October, 1!).">7. These same fac-
tories had payrolls at Vu\.',i per cent., a decrease of 11.9
|jer cent, from September, 1!>.'>H, and !<• p«'r cent, from
October, 1!^?.

Cigar and cigarette t'actories showed emiiloyment
during Octolier, l!K>H, at (57.4 per cent., an increase of
1 per cent, over September, 11>MS, but a decrease of 0.5
yiereent. compared with October, i;>.">7. These factories
liacl payrolls at b()..*l per cent., an increase of 1.2 per
cent, over Hept ember, 19«J8, but a decrease of 1.8 per
cent, compared with October, 1937.

Luckies at the World's Fair

IIK Amoricnii Tohju-cc. (N). makes ami soils overy
t<»l);uHM> ])r(Kliu't I'xcoi.t MnitT, hut of all the
lu-nducts. Olio aloiK'— Lucky Strike ei,i»arottos
at'counts for tlim'-(|uarters of the couipanv's
aiuiual sales and (m jhm- (vut. n\' the ].rofits which
tor the year l!):i7 stood at $2(i,l!)7,(iO(). So Amer-
ican, in its first exhihit at any major exi)(»siti(m, is t,nv-
iiiii' the prothiet it> (hie and is devotinu the entire "ox-
Inhit huilchim to the makino- <,f Luekies, writes William
Ix li»loetli in tile "Xew York World Tele-ram."

American's j.Kvidout, (ieoi-,. Washington Hill
heieves m followinu trends. In ])rei)arin- for a suit-
ahle exhihit, he rememhered (me oi Ww milestones in
i.uekies' rather extensive advertisiim career. It was
the eiuarette-makiim machine that set a run at corner
ot Broadway and Forty-fifth Street, which stood until
i(»haeco lM»ad. So for the fair exhihit, two full size
standard eiuantte machines and one i.aekairin«' ma-
chine, acc.,rdiim to Mr. Ijilj, will occupy the 11000
s(|uare teet of exhihit space. " '

First Plans To Be Approved

Tlh' Luckies Lmildiiiii, several hundred foot oast
ot the 1 heme ( enter was amon- the iirst ])rivate exhibit
huildni-s to he comph-ted and wa> the first to have its
]»lans apj.i-oved hy the Ih.ard of Desii^m. Lucky Strike
will l)e the only ci-aicfte with its i.wn buildin- at the
lair.

With dioramas, movinir pictures, the first over
used to show Luckies' much publicized toastin.'- proc-
ess and the machinery i„ actual operation, the storv
ot the ciirarettes will he traced fnun the |,lantin- of the
tobacco plants to the final packauin- bv the thousands
an hour.

Jn the rear ..f the laru... oblon- buihllmr will be a
park with shad., tree., shrubbery, colorful plants and
Howell a.H a pictures, ue p(M»l. Hcncln's will abound
lor rest-incliued visitors.

Smoking Machint

One of th(. amplilicati.ui> t.. the rather limited
Broadway ( isplay will b,. a M.H.kiuLr machine, a metal
iUKid ri.seinb inu an arched railn.ad station with four
jets inside where ci-arettes are "Mnoked." Each ci«'-
arette ,. connected with a devi..e >imulatin^ the acticm
oi tiie fun«rs.

TlK.",,„.,.l,;,nici.l hi....'-' leads llu-inl.alcd" smoke

hrou.^h ,. fh,sk whcv tl,.. s,„oko pn>,.,.rti..s are trapped

-I .n.r analvH. ilnity-liv,. .entiiiieler^ of smoke ex-

tracteil iron, tli,. l,„iMin!r eiifarotto eaeh sixty sooonH*

wliicli IS Hit. avi'iii-r piiir ,,f ;, MIK.ker.

Moti,,,, pictures „f ..il,,.,- lalmratorv devicM and
systcn.s „u-lu. ,n^ the toasli,,. „r l.ucliies a.^tS
passase thrm.^rl, „ ,ra-violet n.y ..h.unl.ers. will be pro'
jected on „ T.m.slux scre,.„ l„ ,.,.v,,,l tl,e si, ,, v oi>°
searcii, a story (,f whieh ev.ry American is (,„u\.

An Enticing View
From 11,0 exterior, ll„. I.n.kv Strike Ruildinsr will
present an ..ntn-n,,. view wi.l, its l.rilliantiv lighted
bhow wjn.lows, running alon^^ ,he entire front". fhro„..h
vvh.eh ll.e inRcnious machines inside can l„. s,:,.„ The
idea is hat the machinery will mUi^uv the passerby
and^lead h.m ,ns„le. It worked i„ th,. Broadway ex^

(,eor-e Washington Hill started out oarlv in a
serious study of tobacco, its processing and selling- with
American, of which his father was an executive. In
l.ni (,(H)roe Hill moved from the Pall Afall subsidiary
into VK^e-presidency of American under his father
whom James Buchanan Duke had picked as his succes-
sor in the reformed company. It was larirelv through
the ])ersuasi(m of (Jeor-c Hill that Luckv Strik(^s were
ad(h'd to th,. ('(.mpany's jiroducts in H)17 to compete
With other blended cii^arettes.

The mime of the new ci-arette was tak(m from a
smokinir tol)acco American had ac(piin>d more than ton
years before. Oeornro Hill, as the father of Luckies

rVn^nlimiul'"" '"^'•*'^I"^*^i'>" '»»^1 in the first month
sold l.i,()(K),00().

In time Luckies and the chief competitors became
known 111 the trade as the "Bi- Three Ferris Wheel''
bi'cause in sales, advertising and counter claims thov
wheele( round and round like three tumblers holdin-
each other's feet and ndliuLT across staice.

Oppositi(Mi to blended ciiiarettes as^tho spearhead
of the company c.mtinued, however, and it was not until
(.eor-e Hill succeeded his father in VJ2:> that Luckies
were "iriven the i^un."

The only thinir Mr. Hill refused to compote with
was th(. ten-cent ci-arotte, which he calls imi.ractical
unless (luahty is sacrificed. His eccentricities are well
known, JH'^ passion for wearinir his hat in the oflice, the
»rnnze Bull Durham he keeps in his (,nice and the to-
bacco irrowiuir amonir flowers on his estate.

But his -reatest h(»bby is tryin- to secure for
Luckies no less than !» per cent, of the annual increase
in ci-aretto consuiniition, which amounts to about 9 ner
cent, a year. '

R. J. REYNOLDS PROFITS
J. HEYXOLDS TOBACCO COMPAXY to-
day reported not income for VJ'AH of $2.3,734-
.■><>:), after char-es e(|ual to .$2..37 a shannon the
combined common and Class B common stocks
outstandino:, against $27,(i02,;J72 or $2.7t> a share in

^U)^,!;tu lr( ^^^ *-t^»I«*»I *2H2,2rM,t)U, contrasted
\Mth M02,9mMf.l m the precedin^r vear.

How the company financed expanded inventory at

ro^un-s from an insurance company was explained to
stockhohlers in the annual report hv .Tamos A Grav
president. ' ^. vjia\,

1 • "Pr*"'^'i*I'*. ^"»n»«»*''- "»■ 1*»-^^ in recognition of the
desirabdity of hi.<hor inventory investment, for which

unds were borrowed in Ha7, it was deemed adv^
ta^n'ous to convert the principal part of current pav-
ablos into notes due seriallv." Clray «^aid

n«„J\^'''''*"P'"^^*^ ''''*'*** "'«'**' '''^^ "» insurance com-
.any lor a loan due over a ten-year period at an in-
terest rate of 2 4.5 per cent., and in O^oln^r the no eg
in tlie amount of $2(),0(K),rKK), a« «hown under deferred
ab^^o^;;,;" l^*^ financial statement, were issued, pav-
Me$2Mmm |wr year from ]94tJ to 1949. inclusive'"
, ^^wray naid lower sales and profits in 1938 were due
to some shift by customers to lower-priced products »»
dm recession months, as well as higher operatiu,r

EXPORTS IN NOVEBIBER

C()HI)IX(J to statistics of the Bureau of For-
eii^n and Domestic Commerce, exj)orts of to-
bacco and tobacco ])roducts from the Lnited
States durinsr the month of Xovember, by types
and classes wore as follows:

Briji:ht flue-cured was exported to the extent of
4r>,8()r),()r)9 pounds, valued at $l.'),664,r)74. Of this total
the rnited KiiiLcdom was the largest buver, takinjij 29,-
W\Kmi) pounds, at a i)rico of $n,H8.'),66L

Sliipments of Burley totaled 1,2.')6,72() pounds, at
a value of $.'U(>,Hf)(), of which Sweden purchased the
largest amount, 442,11,") p(mnds, worth $170,232.

Shipments of Maryland and Ohio loaf tobacco ag-
gregated 2.39,.').37 pounds, valued at $48,629.

Shipments of (iroon Hiver loaf tobacco during Xo-
vember reached a total of .37,792 pounds, at a value of
$70.34. Our largest customer of this type was Sweden
which took l."),39.') pounds, valued at $2694.

Kxports of Dark Virginia leaf tobacco aggregated
4.36,72!» pounds, at a value of $107,094. Sweden was the
largest consumer of this typo, purchasing 94,43U
pounds, valued at $24,780.

Cigar loaf shipments in Xovember were set at
644,431 p(»unds, worth $114,241, of which (termany was
our largest customer, importing 585,387 pounds, at a
value of $.')4,127.

Exports of tobacco trimmings and .scrap during
the month of XovemlM»r amounted to (>0,702 pounds, at
a value of $2673. Denmark was the largest purchaser
of this type, taking 25,890 pounds.

Shipments of tobacco stems amounted to 2,131,088
pounds, valu<Ml at $42,884. The bulk, 2,OfM),703 pounds,
worth $40,981, was taken by China.

Cigars and cheroots were exported in the eleventli
months to the extent of 466,(HMj units, with a value of
$30,569, of which the Panama Canal Zone purchased the
largest amount. 188,(HM) units, $4477.

Shipments of cigarettes during November reached
a total of 518,943,(KK) units, at a value of $962,519. The
largest buyer of this amount were the Philippine
Islands with 285,250,tKK), worth $413,604.

Shipments of chewing, plug and other tobacco
amounted to 208,2(m iKJunds. at a value of $89,656. The
i*hilippine Islands were our best customer, taking 116,-
180 pounds, costing $56,448.

Smoking tobacco (including cigar cuttings) aggre-
g|ited 69,936 iiounds, at a value of $42,123. The United
Kingdom purchasecl the bulk of this amount, 14,972
pounds, $12,993.

SPRUCE LUMBER

for CIGAR BOXES

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

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

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. I.

eMablUhad 1886

"BEST OF THE BEST

9»

Mui«factan>d by

A. SANTAELLA & CO.

Office. 1181 BroMiway, New York City
FACTORIES: Tampa and Ktg Wtst, Hortdm

AUTOKR AFT

CIGAR BOXE S

Botte Naturt
Cedar Cheats

Novelty
Wrapped

Are Outstanding In
Ouality-De sign-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
flticago. III.
Detroit, Mich.

Hellan, Pa.

Hanover, Pa.

rhiladelphia. Pa.

Wheeling, W. Va.

13

Tobacco Merchants' Association
Registration Bureau, NEV^YoLTaTY

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A— An allowance of $2 will be made to fncmberi of the Tobacco Mer-

tliants Association on each registration.

Note U—li 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
TV, (Jl.iW) will be made. If it necessitstcs the reporting of more than twenty
.i^'n,,*' M t"' ^** '""^ thirty-one (31), an additional charge of Two Dollars
(J-.OU) will be made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

TRANSFERRED REGISTRATIONS
BON VOYAGE:— 21.924 < lia<k-Matk Record). For cigars ciga-
rett<.> and tobacct.. Registered December 12. I8W. by (.eo. Schle-
gcl. New \ ork. X, \. I brough nu ■.lu- li an-ii rs' ac(juired by
Uiarles ^^t Co. .\e\v \ dk. .\. V., and re-tran>ierred to Gristcdc
Bro> . Im . Xtu ^ ..rk. N . \ .. ,,n December 21. 1M.?8
HOME PRODUCT:— 18.747 ( Tradv-Mark Record). I'or cigars
cigarette- aiui tdiacco, RcKi-tued I ei)iuarv H, 1898, by Witsch &
.scbmitt. .\e\v York. .V. V. Iraii-terred to Ma.\ Rotb. Lo.s An-
gele-, l al . and re-tran-lerred to I'edro I'ando. Los .Angeles Cal on
Januar\ 7. ]^K^*->. ' '

MAX ROTH: — 40,863 ( Fobacc. Mcrcbants Association of tbe I'nited
bUtes). I-or cigar>. cigarette- and t»»bacco. Registered Xovetn-
brr 2Q 1018 by Max Rotb. Lo> Angele.. Cal. Transferred to
tthel Koth, I...S Angeles. Cal. and re-transferred to Pedro I'ando
J-OS Angeles, (^al., on January 7, lO.V). '

RE-REGISTRATION OF ABANDONED OR
UNUSED TRADE-MARKS

Xv.tice is hereby uiven tbat an api.lication has been tiled with us
tor the registration oi the lollowing trade-mark and that same will be
rcgi.stered unless we shall be a.lvis^.l of the existence of anv valid
nght-^ thereto by written notice, -etting forth specifically tbe basis of
such claini on or before the registration date -it opposite the trade-
mark :

TRYLON:— -For cigar- 1 ebruary 15, 1939.

REVENUE RECEIPTS

Source of Revenue 1938 November 1937

S!^'"^^ $ 1.314.710.84 $ 1.311.f,8r,,29

J:'*-'%^'^*'" 40,520.274.89 38.362,249.20

:, "r ■ ■ • , 574.792.30 578.976.36

I onacco. chewing and >«moking 4,994 628 8^1 4 '8? 497 17

Cigarette papers and tubes 'l34>45;49 "91*217 60

Leaf dealer penaltit - 98 51 ' '> sS

'''*'**** *». ■ • , $47,539,250.89 $44,627,652.17

* Manufactured Tobacco Produced by Classes

I As reported by the Bureau of Internal Revenue, based on

manufacturers' returns of production)

Month of September
n_ J , Increase or Decrease

Plu«r - \'^ Quantity Per Cent.

lL"f , .^^23.424 — 546.4.W 9.81

Fine-cut thewing 40?.^ _ ^ j ,^,, *^g|

S^ap Chewing .3.6.S.M29 _ 176;854 461

^'"°'^'"*^ • ■•• 17.H12.217 + 1.874.303 1176

T'«*a^ 27..^27.408 4. 929432 ili

Nine Months Ending September 30th

T>,„ J. . Increase or Decrease

Product ,938 q^^^,-^^ Per Cen^

V ?. 42.010.604 _ 3..m3 132 7 '9

'.''■"* • V-; 3.956.480 _ ] ^19919 ^3 fir,

F.ne-rt^ Chewing ^.564.977 _ 7:^940 ]i^

Scrap Chewing 33.623.884 -^ 1.079661 , ,?

^"'"'^'"^ ■ 147.175.910 : ^4-025 4;36

'^"*"^ •■■• l^om.HM ~ m^7 "~iSi

vnti*I!^^Wi^'-n7 ^^''''-'r" '" '""^'"'^ ^""' ^'- -'''i-« »- -vision
Revenue. ' " "m^iMioner of Internal

'4

CIGAR BOXES

T*L AUoaqala 4-*SS

i&^^^

Kitabllshc« itn

•S7-64I KASTtrnST,

OUR HIGH-GBADE NON-EVAPORATINO

CIG4R FLAVORS

Make tobacco in«'Uo%v and smooth In charactair
and Impart a must palatable flavor

OAVORS FOR SNOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTUN. AIOMATIZEK. BOX FLAVORS. PASTE SWEETENBIS

FRIES 6k BRO.. 92 Reade Street. New York

TOBACCO TRADE ORGANIZATIONS

TOBACCO MKKCn.ANT.S ASSOCIATION
OF I MTED STATES

<^l^

JESSE A. ni.OCIl. WJicflinsr. \V. V.i President

WILLIAM HE.ST. NVw N, ,k. N V Chairman Executive Committee

MAJ. GEORGE W. HIJ,!.. NVw V,„k. V. V VicePresident

GEORGE H IlfMMEI.r., NVw V..,k. N Y Vice President

S. CLAY WILLIAMS. Wii.^t. n .S.ileni. N C Vice-Preiident

H Lirs LICMTEN.STEIV. New York. N V Vice President

ASA LEMLEIN. New York. NV V Treasurer

CHARLES nrSHKIN'D. N<w V..,k. V V C.Mi! srI .,n.! M.maKinK Director

Headiiu.nrtcrs. ^Al .M.idison Ave, New York City

THE N.XTIONAT, .A.^^SOCI.XTION OF TOBACCO
ni.STRIBUTORS, IXC.

ALAN C DAVIS. Rnltinu.rp. Ml President

EDMCND C. DEARSTYNE. Alhanv. N. Y Vice Preritent

.TOSEPII KOLODN^'. ym Fifth Ave., New Y,.,k. N Y Secretary

J. HENZ EDWARDS. Kan«s Citv. K.-'n Treaiurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LASCIfOW. 8r.2 Fa-it Fifteenth St , Bronklvn. N. Y President

R. L McCORMICK. 52 Klein Ave.. Trenton. N. J Fir*t Vice President

.T. T OLLENDORFF. 780 West End Ave.. New York. N V . Executive Secretary
ALBERT FREEMAN. 25 Wc*t Bnadw.ny. New York. N Y Treasurer

TOBACCO SALESMEN'S ASSOCIATION OF
AMERICA, INC.

HARRY A. ABRAMS President

LEO RIEDERS. WW Bnadwav, New York. N. Y Secretary

.lACK FDFI.STEIN Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A HOLLINGSWORTIL 2M Broadwnv, N. w York. N. V President

LOflS KLEIN FirM Vice-President

ERIC CALAMIA Secretary

ARTHl'R S MEYER Treasurer

CIGAR MANl^FACTl'RERS ASSOCIATION OF AMERICA,
INC.. 200 Fifth Ave., New York. N. Y.

ALVARO M GARCIA President

THOMAS C BREEN Treasurer

SAMUEL BUMBERG .. ....Crt^neral Counsel

Executive Committee— Ah. t M < iarcia (Exofficio^. Thoinai C. Breen. Harley W
.Teffer«on, D. Erail Klem. W.ilier K. Popper. Harry S Rothschild, and Arthur
A. Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

BRl'CE G IflCBTNGER. Red Lion. Pa Presideat

C. M. EHEHALT. Red Lion. Pa. .. Secretary

A. S. ZIEGLER. Red Lion. Pa Treasurer

SMOKED 96 YEARS

Another contirmed pijn' sinok<»r has gono to his
well cnrnt'd rost at an advaiUM'tl a^rt'. He was Richard
Connorn, who died at Saint field, Ontario, in his 104th
year. Tfic hitf ^f r. ( 'onnois is rpcordod as having taken
to Hmokinir ait \hv aicf of eiirht, etnitinning tlio practice
throuKhoHt his lift* witlioiit any adverse effects.

What interests uh aliont .Mr. Connors of M^urse is
the fact that he lived to an n^v which phiccd him in the
category of one of Oil I. trio ',s oldtst nifu, thus indicating
that smokin*? tlitl noi .short t'n his .span (»f years and
adding some cvidt'in«' to thi- ca.sf that is argncd pro
and con for snniking.

Tht Tobacco World

ESTABLISHED
1681

SOME TOBACCO
TAX STATISTICS

Believe it or not, that little blue rev-
enue stamp on each package of twenty
cigarettes costs you six cents, and if you
smoke a package a day, your cigarette
tax bill each year is twenty one dollars
and ninety cents. And, there are a few
States which also impose an additional
State tax. For example, in Arkansas,
where the State tax is five cents per
package, the consumer pays eleven cents
tax in all, which makes a total of forty
dollars and fifteen cents per year, if he
buys a package a day. Incidentally, it is
interesting to note how cigarette taxa-
tion affects consumption. As an exam-
ple, in Arkansas, the per capita consump-
tion is only about two hundred and
ninety-two per annum, whereas the aver-
age in the States which do not impose
special taxes on cigarettes is one thou-
sand five hundred and thirty-one per

annum.

Jlfni, ('. I hi

r r

HoBART B. IIankins — Editor

Business Manager — B. S. Phillips

LET UP. LIGHT UP A CAMEL

SMOKERS FIND THAT CAMEL'S COSTLIER TOBACCOS ARE SOOTHING TO THE NERVES

101 STORIES UP (.11 tl.L- world s t.ilkst buildinq. Su|,k> I %tr
su iiiUN in till w iriil \\ itii only a Ir.iil m .iIIdKI 1h t\s mi liiin .iiu

\\ ell. Its 1 I (Id ti t ( (,, tlu- slfLI. t. I ll^ U ork In to fi p.ur u iiuitiw s

ill tlu- tower of tliL- I mpin State HuiKliiiy, Ncrvf siraiiiini;,
>iHi hit. I>iit as Sivl IMrt sa\s: "A Kllow with jijiiip\ iur\Ls
wouKliit la-.t lonu on nn |oh. So I tasi tin. tiii-ioii on inv
iur\cs whciUMT I (.an. I Lt up lii;lit up a (aiiitl. I liiuj
Caiiitls arc- sootlmm to tin. ik r\ .. s. ' .snioki rs m a wuK \ariciy
of ni.r% c iiat:_i;iiiu oitupatioiis, lurMMraimni; s|>orts turn to
Canu'Is tor tlu same reason. I lu % tnul it pa\s to ease mrve
tension ottin. .so tlie\ let up lii;lu up a ( aiiul!

>*»s.

EDDIE CANTOR

f?t\

,

i

BENNV GOODMAN ».. \

; . ^1 ■■ 1

1

I Kill I I 1' \ « \MI 1 ■ <

THE TOBACCO WORLD

Vol. 59

FEBRUARY, 19^9

No. 2

lX(*n-niTTKK*S j'or th<- r('s|M)nsil)l(. (.(liter,
who is still ill, take this (K-casion to thank read-
ers and advertisers t'oi' theii- I'lieiidlv words,
lollowiiiu- til!' iMihlicatioii of the .laimarv issue
of TiiK ToiiAcco W'oia.D. It is our coulideut ho|)e that
they will find this cuneiil i^sue eveii inoif inteicstinu:
than its pi-edecessoi-. We |)IedL^e our (Muistaut efTort
to increase the information and enteitainnient value
of each fortht'omiuu issue.

() much coimneiit was aroused hy oui- para-
uraphs on the fundamentals of advertisiuic last
month that we are prompted to tackle this
mauy-sided suhjeet fi'om another an.i»le ihi^
iMontli. Beinir s(»mewhat td' a -tudent of advertisini^
lor, lo, these nuuiy yeais. we weic attracted to an
article in a recent issue (d" A/lrntisintf (ut/l SiUiiuf, It
was entitled, "Which Puts Moic Power in Advertising
— Vour Money or Vour Appeal'"

KHK, we siiid to ourselv(>, i^ wliere we learn
somethiriLr, tor the hydiuer. Mai-k Wiseman,
was descrihed as Director (d" the f^alKirattJry
for Adverli^inu Anal>>i-. Xew York <'ity. In
an editorial hlurh ahout the ailicle J. A S. states that
Air. Wisenuni assay>- the two chief foices hehind elTec-
tivc campaiLcns, money and ajipealH, cojdinin!^ his study
to cii^ai'ettes. Peviewintr nine year-- of ndvertisin.ir for
the Bijr Three, lie ndutes the notion that "the popidar-
ifT of any one make varies alm«»st in dlicct proportion
to tile thrust (d' the adverti>inu dollai- hehind it."
{t\ntuu(.)

H. WlSKMAN states that "the ciirarette busi-
ness and its liislory happily provide the nee
sary e%ideiiee to judu:e tiie relative worth (d'
the adv( rtisinu appeal and the appropriation,-
The thre,. lo.idinu brand- Camel, Lucky Strike i\\u\
Clie.sterlield— are similar in charaeter and tante. Xont'
<d" them posse- -(-. any special 'feature* or sales 'story'.
They have Imm n li«;hting their (oiupetitive advertisinu:
hattle witli blue ehip.s long enough to alTord an eviden-
tial rword. They have used all the available irie<lia
for mass impression. In short, they provide all tlie
nuijor 'controls' demanded by t|i<' analyst to help him
reach nn aiiHWer to the tjue^tion. ' I- it uioiiey or aiipeal
that makes advertising »uc( e-^ful .*' " < Hcl-fashioned
muggH who are n<d dii-eclor> of laboratories t'or ad-
vertixing analysis, would say that this i< nut a <|Ues-
tion that can be answered cateirorically, no nudtur how
much factual evidence is pihd up. To their minds,
the hjgical answer would i>e that it is Both nionev and

appeal that make adveitising successful. For a given
.'ipprojiriation, the better the appeal tlie more success-
lul the adveitisiuL:, ; foi- a uiveii appeal, the more money
put lieliiiid it the more successful it will be To uui<^''<»-s
we say, that sounds like common sense, even acce))ting
Mr. Wiseman's bland statements that the three ciga-
rettes ai'e so alike that thei-e aie no distinguishing
marks of charactei- or ta^tc to form a basis of com-
petitive advertising claims.

PT such common sense is beneath the notice of
a director (d' a lab(»ratoi-v of advertising anal-
ysis. L"1 "s an.dyze the records of the three
comj)anies dnrinu the oast nine years, he says.
And believe it oi- not, this director of a laboratory of
advertising analysis solenndy analyzes the dollar ex-
penditiii-es and the unit sales (d' Hach of the Thkke
< ti.Mi'ANiKs r.v Itski.k, forming his conclusioi s |)urely
on the relationship between dollars expended and sales
made by each company, without taking- into account the
adveitising and the sales of ea " of the other two
(•(unpanies,, a^ well as the advert i>inu- and the sales of
Old tJold and the larii:e gi'oup id' all others. In other
words, i?i analy/inii an industiy in which the most im-
portant angle i> pKiK KNTA«iK OF T(»T.\L, botli in the ad-
vertising that is (huie and in the sales that are made
(geneial ((Midilions dnrinir the period c(»vered being
a vital fact<»r in sales), Mr. Wiseman belies his name
by entirely ignorinu' such percentages. He analyzes
each eomimny in turn just a> if that company were
the ordv one in the field.

ATP1\ALLV, frtun such a cockeyed study of
the subject, there call be no approach to any
seientilic evaluati(m. S<'ience does not evolve
from pseudo-science. So, in si)ite of the eon-
clusicHi that there is "no consistent relation between
expenditure and >ales," we shall wait for a more schol-
arly pre>entation (d' this thesis, being content mean-
while to advise our own friends that the answer to suc-
cessful advertising is a ccunbination of a good appeal
and an ad«K|nate appropriation. When they want to
know how th y'lH doing in a sales way, we shall con-
tinue to suguct to them that they gauge tlie value
of their advertising by the rise or fall of their per-
centage of the total. When they want to make com-
pari.sons (d' advertising expenditures, W(» shall continue
to advise them t(» take into account the advertising
iMMiig done by others in the iieUl. The only way to
show the relationship between advertising expenditures
and -ales is by the percentage id' the total in each in-
stance. And we certainly would make a detailed study
(d* the types of media ii-ed, a detail which Mr. Wise-
man dismisses as unworthy of his attention. He thinks
that media, like cigarettes, are all alike. Only copy
varies — and al»out that he has a book for sale/

The ToHA( ( c» WOHl |i
Secretary. Ofl ( hc»niui

1$ cent! • coi. gn, $| 7S

is pali

. \S,nl.l 4 ■irporation; ll..l>«rl B. nankiiii, rresidetit
Uiucd monthly. Subscriptions, available imly to t
I cl«i» mail matter, December JJ. Wfi, at the Post <■

T?r;i*nrci ; I!, s. I'hillij.s, Vice Crc^i.ltnt; John Clcary,
I in ihe tobsMo industry or trade, $1.00 a year,
. ■.■.ailclphia. Pa., under the Act of March 3, IS9.

Perpetuate the Tobacco Retail

HK iMo«.,v,-,ti,„. i.ml |.,.,|„.tMi,li„„ „f ,1,,, i,„i...
'';■'';'••'" '.••■'"i.l n,..n-l,,-,nt n..y l„. Wnnrd .s one
<' l'|;«v.«l,l,,.s,|,,„l,|,,,,,,,,,,,-,,,,,,i,,„.,|, ,„.

ti<»i, .... ' ""'^'i.niT nil a ncct'ssniv ocoimmu. i'linc

;4mi v\. ;: ;;,;iT;,r,T;';'r

tion— .,.„ n, ' ■ ""'*'■■ '"'"'" "' '''"'il liisti-ibu-

X,, rn-.;'ii;;'''''V' r^'"''-'"'"'-^ -"■ "- nv..niiy .'.

V < i. . ,,1' ■ . • '"' '"■'"'■■""•'"■y c-lu.llrim,.,| l.v iiui:-
tlo t . <""'nv.. I„ ,.|i,„innl,. I,i,„ ,„■ is hi. 'pi ht

eTJ'ol' ;:,;.'';.,;!;;;,t';;;:'^''>- '•■'""' ''"""■' '" ""■ ■"■-

HH..vjai,..,.a:,/,:i:,r'i;,,;;;;i:;;.;;r;:::;j"'n"^
iar.J';/„„!,!;:i':;/y,;;.;;;'; ,;:';'■;•;. ■••■;■■';'"% ami ..•..„ if a

^'IK.etiv,. ,.„„.,.p i l! ''•''-":''.'" I'quKlafo tlu-ir re-

"' a.-I'inilt '■;i;i';uz''i' '"■ "•'"!"'•"' •" •'" '•"-"^■"^

to un.k.,tak . a ;S, «•"''';'''''•, ■'"■"''^ '""' "'"'''''
'"•>itivo ,-.,st, II, .„ ; ' . '~ -luca M.n ,.ntails a pro-

•he joi,i„ ': I ,.;',:;;■, r v;ii:'>^'i- H" .i.-iH.n,i« on

"ess Havin.',; 1 •'"'■'' '"■" '" ''■'""'"> '" ''usi-
•ho ton -,!!r' , ''I''' "■''''■■' ''■"'^■i'"-' -"•'-, in

do fo..\.,Tn .i::'-;; ;:;;,;i,:"';;7,::::;-«v.. .he ,,.,.0 you

-.V enta., an a.,.,i,i.„.«i cUl^l^i^l^l.'lltV^-':

M') The inhhcr is -i i.iijji
merchant. Tlu^ n.tail.r U '"^"It^" nuloiM^ntlent

Jobber Depends on RetaUer

vaiion';:f„'';^:!'^:.i;;t;::,x;-;;-[;«nce and p......

reta,lor-„l„.tlK.r tobacco ooh,'^ "un'ival of the
minor volnnio of his h„Mn"«,'- 'J"' '""•'"• "r
'•'.nditions suirouiidia";,";,, * '" '"■"■">■ •""'l.v=^<' 'I'"

-novi'ck in ;;!,.'—• -:::r:-rh':;;';n^;;;-;:;^

Bv JosKI'H KoLODXv

er!

-■'■i.-.i li.h;:;,; ;.:;::: :,:\:;:;;;r'- "i-'i, h.,

Dm. (oih , ""'"•»-k (iMHu.lin, ho!i,lavs).
i/iic 10 111,. nn'a"i(' (••111 t.,1 .. . '

III" estahiish,M,„( of^.M;; I ''■'■'", '■'■''''''■'•<' '■'"•

'•'■>• s.on.--.. m. 1: \ t:''•7''V■T■^'■•''''''''-
^lan,lar.liz,.,l pn.,l,„.,s ,1,: ,' , '■';' "'. '"'a'I'MU s,„.h

'•an"'nlcrs. tailors. s| , , ,,. ' '^ """7 .""■'" '"""or
'•l.>a„,.i-s-an,l oth,:,.. l^^ll^^J^^t'ir'^i ^''Tfi'

'■'"'- ->• .■Kim. o,;'t a li '!iih:::,:r-^^ ••""•'••"■'- "«>■•« «

i.ype.'on;':!;::;;;::';!,^';;;:,:;,:;?:' ">•;->-,.,

11m. iia.lho.ls I.Tlmi,,,,, . ' ■'"•'l''"'l (. nor ,..li„.at,.<l i„

a"|Uir,. i„.w kMovvl..,!;:,. j, i -.i . ■ ""' " '1 """'' ♦"
more n,o,|,.ri, stoivs Miaan IbV • l" "'"'""♦ *'""

am:;!':::;!,a;;;!;;';:!;i\-r'''^^^^^!^---^
va-M..ivor;;;:i';-7;-';-;;;':!i:-^^

"-"-1 at. ii;t.'\vh /;:;';:;.':■;■• "i"' ■•"' ,""■. aror..i„on-

tho narrow .-oiilin,." 1' ;■■ '■'•, •;'.'"' "'-'" withiti

Piinlil,. i(.V(.h,i,|.„.„is tl, •""'"■'I •<> 11m. new mcr-

i..xp..,.t to I,,. .. 1 ll<^^V . ";■ "''"'"S..I0 .lislrihulors
I- in.' with t M 1, h,r nT'''''';''"'-'' """'I'-'iim,' an.l com-

mana,..,l 'ha /o "\t''''''''''*''''^'T'' ='"''• '•n^^
maH, : t|. „ , .u ' ^ '' """■^'■< ■- "- v..ndin^'

Legislation Not a Cure-aU

Alaiiy aiMoiic' ns ,,, ,,. , . .

illn-ion that ,Mam.. I „r , ,■ , al.or,,,,' nmlor tlifi

it." il will .i:.ci 1 ''":""""" •'"'"' <''..lh in
small .n..r<.hanf ' '•"'^ «»d "ustain the

lotnconfrom,: 'tT'';;i'j",T, ;■'■''■■' •'•i;'"- T''oi.rob.
mercban.lisin.. fa,i|i, ' ' , """■-elnill..mr..s all o„r

->1-I.v o„r lo,Hslativ,. aims. '" ''''^'^"'■'' '" »»

forcc!'T,l^'h*''!;i:,';;,;'''-^' '■'"":'"•♦?'• "■■" ''i1i''"lt to on-
"mntmni,,t„i„«?'^; ",,"'■'•'""■'''»'''''• ♦*«» "'e ""vorn-
hutf.. ™. IS l.r r "■"■"""■ '"^ evasions, .s,... tl".

Yet no„,.'o, ,,';;'";„"« "'^^'•^■•l";:' "' '•i-'l.«ay I„w«.
TWrs.. ,I-,iK. 1; "lii '•^'^'"'^^ .^" intrrnatc.jv ,,ir,.,.ts o„r

in«s. ;i:.': ■ Ss";r ";:"""" '",'■'"•'■'•"-■ "•■■• '■«.^-

""•- - ..M,„ ani MoT I ■ 1 'r '""" . "'"■ '"'^""'«« von-

^<riw„.. i;;!;^:ir';';;,.!;uS''''''" ''"■"^"■" '""•■"•'' -
;..anSx::;;,ov,.;/;::;',x;;. '''•••■'- youn.

boconic a bi sin Js I..., lo 'h^' -'l" "■','■•" '"'« '"
fr<...,loMi of action t i . '"'" 'ndppcndcnce and

'"•-/■J^abiii.v'uid'r;,;;^^

a .M.C..CSS,,,, citc-pris... Haviii. tShu! fn>l:io::^

The Tobacco World

personal nnlialiv,., 1„. dreads the thousbt <,f encounter-
"IK nn.v h,n,lra>„.e or obstael,. i„ the f„|| exercise of
|.e.-son;d aM,l„ m-m To ,,,rl, ,|,., ,„.sir,.s an,l in e , o

; ..' ,1,: ; ' . tI ."^ •■'" |>'-HnMounlal,l,. and uncon-

'I'" ' '"^'-- "ii'< ni(.r<.|iant, l». he lar..e or small

'•an ,.as,ly ev,,d„ i,. ],■ ,„„ „, „ prie,., I 'loa olTefa

-erel rel.it..; ,1 yo„ p|„,, „p Um. ev il of\secrXCtin."
lie .esorls to ll„. pr..,..|i,.,. „r .ivi,,. f,-,.,. ,„..rehaiidise."'

"Ii.it I a.u iirniin- to ..onv,.y is the .lifTicultv and
the 11, r„.;M.y o s,.eunn.. ,„„| ..nforciiw h.^islation do
sigiM.d to lestrM't iinlair ..oMip,.titiv.. pracFicos

Cham Stores Checked?

We .-ne ,-,,nfrunt,.d not .oily with the price of mer-
chandise to the ..onsniMei-.oore than that-we are
faced with he chara.ter of service. Manv anion.' us

may view tins stat.. nt whinisicallv bv allc^nn- Hiat

lor the past lour or liv,. years, parlicilarlv, tli<.n. ap-

[jears to he a halt in ch st.oe expansion.' Tliev fur-

' ■■;''■-'■ ll'.il lln^' meth.Ml of distribution has ap-

P"'';""-^- '•-•■'!■.' I-^ l"'ak and as such the threat for-
merly prevailiim' Iron, this avenii,. of distribntioti i,
now laiyely abated. I.ef „„. disillusion vou ! [...t us
l.-Mc lads .-.s tlM.y are ,11 l!):!!»and not .•,s tl„.v weresev-
eial decadi-s ayo. ■ "

A pn.s..i,t-d..,y merciutile establishment cannot
""■a.- eo.npanson to that existinit prior to modern tech-
no omea I ■■idvaii,.,.,,,,.,,!. Veais a^o. a lari^e business
.■nlcrpns,. was ni,w,c ||y, c„„,berso,„e, and anv pro
|ios,.d ihaii!,,. re,|,ii,vd ireniendous outhivs of capital
and piesented ureat dilliculties. Today auto,ii',bi le
s .vies ai.. .-haii;;,..! with matlieinatieal pr..cision • Ma-
chines an. nuistantly uii.lei-oinu' n.vainpini; aii'd're-
mo; "Im;^ IIns „,ay be applied also to our mercha.l

Wliil... in Unuwv y.ar.s it wa.^ nnirralhf true that
a <-lunn st.nv n...M -|ns.s LachTs" to attract the con
J^.H., H .s n..l a tat.t today. Our .xiH-rionco uX

it.% )t pi !«.(., th.» cfluMratly niana-od diain store ur de-
partiiH-nt .store can n-rnain in hijsin.'ss and retain a sub-
stantial vohnn... Whyf The .'onsurner has alr.^uh.
HM^n trained to patronize n.ereantile estahlishnicnt's
H here la rue varieties of eon.iModities are purveyed
aimd.st neat, sanitary, euurteous, c-heerful, and pheasant
Mu on H m^s I. urti»ern.ore, the present.lay cinsunie
s no , ,n the true monninir of the term, a shopper He
■s a Miy.r. I he rapnl tendeney t. .wards standardiza-
linn h.is nwasurab y add.Ml to his education. His ta^te
j« «HMdde,l through newspaper advertisinir, radio. bUl-
"kH -iJ"^ "tlHT mediums of

ho iVo'J. I'l*- ^1*'-' ''''"*• *" "•■•♦' '*''"'^'' ^^•^^«'-» where

U l^-f "l ln« ;'.snre time, what is |,ood and vvliat

Md I.M him. Ihoutrli in a competitive market, he

^^o.n,„e extent swaye<i by prhe on a ^iven popilar

net he wants ,> nlTered m, an equal price level, he pre-

fors^nirrnial ami lu.spitable nhoppinff surroumliL^.

J^e realize nt .ourse. that a similar situation cmi-

h.mts whole^ler« ,„ other lines. I feel, however, that

ot our c^lleairues m wholesale distribution For in-
»laiu-e, the wholesale grocer realized this challeni^e to
tiis hii>ine.. ,.,any veafs apo ami it resulte<l into the
formation ot^^u^.at m known as the 1. (;. a. (Imlepend-
nt Oroeer. Alhance). j am not in a p<,sition to dwell
upon the suecess n\ the independent I v-owned 'n-ocer'a
ofCTnizatmn. I commend, however, the fact that thev
tm^ fac s and attempted to solve a difficult probleni
—a threat to their business survival.

1 chruary, ii^jij

MlL.TIri'/"'.'""'"!',"'" ^- "• -^ independent Dru^c^ist
Alb lie,.) tost<.red by wholesale dru.."ists H,.,-e^:.: f,

ered.t iiiiist be ,iven to the d,-u«o?s,s ?or heiV'fo -
>-i,Ulil and pro.uressive attribnii.s. >-,iiort

Krocorv stol-e'i"'" '~'^^!'^ ."'' "'^ fact that a retail
r.eeht-e t ,, . '".r"".^' "' "«elf, and I further ap-
pHciate that a retail dru;. store is a ivco'^nized nlaeo
ot l.nsim.ss. Tobacco products, however^^.e in count

ess ins ...nces, only a si.leliiie. This, howe ve does not
;.; f;;:-^<ardiness. I,, those markets Mheretl^*

't.,1 iiKai stor,. has yon,, mlo oblivion, while we

"econisK''"T''' ;","■ ^''""""'■'■^' "•'■-- "''"l^' -^e I"
acoinsts-shouhl hav,. cooperat,.d with the wholes-ile

ln...U-.sls or Kroc.rs in tli,.ir r,.soluteiiess t .satV^-uard

"'■ status o th,. small in,lep,.ndent merchan s It is

rviv r-i'ii.""!, t" "'■ '"-"^ -holesalers-Uepend fo
•"o\i\,ij and sustf'nance.

This is not a s,.rnioii. and )M.rhaps the last obser
atio.is an. en.,r,.|y imcall,..! for. how'ever we are do" 1
nsr with ^niiii realiti..s aii.l it certaiiilv ill becomes us
to overlook p,.rtinent ,levelopi,ients. Xow let us con
,7;!:,;,,',;:: '" "'"""'" '" ""^ """"'-^ and ala"™ins

Possible Solutions

„;^''"'''' ""; '''1 lis realiz,. that ^r,,,,,] business jud"-

" '1'man.ls an.l directs the adoption of po "ci?s
>m<ie>- whM-h w,. may ,.tf,.ctiv,.lv .-oi ip,.tc. witl other
"'"Inmis of distribution. Coial.-.ninini o de, oundn^
iH' new vehicles ,lo,.s tiot solv,. tl„. ,.,.ononiic "Sm
' ia^ .,^ive one n,..ntal satisfaction but notli ni; else
•Inst s..e what has occurn.,!. (;ov,.rniiient census fi.^'
uesi.Kl.cate that wli,.ieas tln.n. wer,. i„ ].,2!. more tha"n
■>. m out ets nniversally n.coKniz,.d as cii^ar st,^ros
tl e.e aie less than l.-,..l(«. such outlets toibn-a span
ol less than t,.ii y,.ars. . • ' ""

Conliary to opinions of manv. the hW factor in
eo-npetition i.s not altogether oi.eof ..rice^i lanta.^
la'l.as cxperie.,..,. indicates, is a mat er of corroeted

"'" '.'"I"'.':'; '•' |"-ls. Parth.ularlv in eonnectW n w th

cctain vital ,,.tail fiin,lame,itals (a) Dealers , us t

iic^uarly a.1,1 attractively thn-u^di window dis-
Illa.^s; (c) d..alers must b,. pbic,.,! i„ a position to buv
<"mp-t.t.ve m,.rcl,andise to match co npetition (d)
dealers must n.srain public -irood will" lost because of
"Id- ashio.K.,! ni..t MMls of business conduct; (e) Zlers
.M.s work toward th,. sam,. ,.(Ticien,.y in busiuo.s™!

d!s'in"n..'.ndf ""' "'"' '■'"'■'"■'■"' '" '"'^■"'"•'■'' "'-'^han-

I. .■i|,pie,.i,.,|,. t|,„| i, i, ,, st„p,.n,hn.s task but we

- t.-.inly should ,iot shrink fn.in the p,.rfor.,iancc of

a hi ire an, p,.rli„ps nnpleasant task or from espousin.

a , tuipopiilar issii,. wlnn the s..cuiitv of our fituix i^

••.I slak... In proposinj; an approach to an ultimate solu-

mn I wish to emphas,..,. that it is the objective that

sot paramount i,i,porta.i..,.-tli,. i,ietho.| ,,f attainin.

t s ecomlary. .A Her „||, v,.ry few worthwhile cansel

■ ilist 1 the appnibati.m of the co.n.nunitv-while in

llieir tli,.oret.(.al state. ' """^^'"

... ''''.';; '."a-i;"' I""M<.iii conf.-oiitini; us is the elevation

-.t within tl... realm of possi ty-of the independ

'"I ri.ta.ler our customer, to a comp,.titive plane ao-
|M-oa,. .1,,,. that of his pn.s,.nt-day eo.npetitors To aN
am It, I sutTKost and ursf,. the a.loption of the follow-
ing p.-o«,^mn : the establishment of an N. A. T. D. Retail
.Merchandising Council. mian

(C(iuliui«(l nil I'lifjr 12)

Cigars Decline Slightly in December

Classes A and D; However, Show
Gains; Chewing and Smoking Join
Cigarettes in Climb During Month

|C(X)K1)1X(; to Ik'sI a\;iilal»l(' .vtatistics cigar

witlulrawais durinu \\w iii(»iitli (.f Jh'ceinhor'iii

the luitcHl Statr> wric >]i-litly luulvv tliose of

a year a.uo. With all ihussJs tabulaU'd the

month showed only a delieit t)l' Jittle more than 2JHM) UUU

or U.G5 i)er cent. '

Chissey A and 1) were the sole uroups to emer<''e
with increased prodncti.ui while the otli.-r classes sus-
tained decreases, finaretlc outi.iit again stODped for-
ward with a small percentage gam wlule a real upward
boom was experienced in diewnig and smoking tobacco
Little cigar, were r.lf -.:.> p.-r cent, in a market which
has not been cheerful to this proiluct all vear. JSnulf
Held i^ts (>wn with a negligil,lc decrease ,.r ().04 per cent.

Philii)pine Island impcits gained over two and
three-quarters i,ercentum with Class A ])ulling the sole

f^n^,. ""r^ '^'V'"'''^ "!' '^'' ^""''^^^ with increases
in Classes B, ( and h over last year's ligures but sus-
tained a heavy loss in Class A cigars.

Class A ligures for this cmntrv disclose with-
drawals amounting to -^s,;,r4,855 dnring the month tor
an incmise ot WMi over J)ecember Cf 1[K17 wliile
Philippine Island impmls i„ this class jumped 4j^>5oU
tor a total month's .ntput nf U,:]00,12:. Puerto kIco

^o^^Zn -^^f,f-- totaling :n,:m whichuS

Wo,20.) under last December's statistics

. Class H cigars wi-re down l.TO i>ercent. here but

increased m l>uerto J.»ico where a gain of 1U,6UU wa«

Product December, 19M

Cigars :

Clash A—

L'nitcd States . . .
Philipj)inc I viand--
Puerto Kico

Total

Class B—

L'nitcd States

Philippine Islands
Puerto Rico

Total

Class C —

United States

Philippine Islands
Puerto Rico .

Total

Class D—

United States

Philippine Islands
Puerto Rico

Total

Class E—
United States
Philippine Islands ,
Puerto Rico

Increase or Decrease
Quantity Per Cent.

J88.574.855 ~

14..155. 125 -f

51..U5 —

432,55u
105.205

0.03
3.11

,>(lJ,'^Sl.,,_

416,705

0.14

4.689.873 —

5,977 —

13,550 +

84.190
1.239

4.r(i9,4uu

N,829

1.56

37.5Hr..(W8

il.SlJ _
7(i.Min 4-

2.044,904
7.564

13.15(1

5.16

^",''78,510 —

2,039,.nH

5.13

2.794.724 +

29,453
36,494

i.o;

2,795,750 —

7.041

0.25

336.073 —
211 +

Total

33634 —

169.595
201

1 '.9.394

33.54

33.50

noted A fraction of loss was sustained in imiwrts of
this class trmu the i'hilippines. Class C experienced
snmlar treatment in tobacco markets reporting a local

•>mtn;f '' "*" i^-^!' .V"'" ''7^- ^''^'^^ ^^ a<Ivanced nearly
• Al no over last Oecember with a total j.roducticui of
-w.>4 I 4 m the [ nited states. A falling otf occurred
111 J hili])pine importations of tliis grade.
^ rigarette manufacturers turned out iL\r>."')r),<)9;U)13
cigarettes during the month which represents a little
h's.. than Inrly-live an<i a half million increase ove-
last I ..cember. Xciie at all were imported fnuM Puerto
hicn but <.nly :,n;j,7L>n were brought in last December
i hilippme cm^nette manufacturing was in the minus
<'«»lumn by ..(>,,, so. Large cigarettes have not found a
very receptive market either this month nor all vear
Littl.. cigars produced HMhoJM;; during the numfh
wliicli ,s a .b-creas*. «»f .some 2SL»,0()0 or a percentage
h^s ot li..,s per cent. With :{,;ms,-J2 pounds of snuff
being produced this was but l.-,()(; pounds under 1937
lignr.'s. Snult has mere than held its own all vear

J^argest m.lividual uains wer,. registered in sinok-
i liC and chcNying tobacco where L'.!. 728,240 pounds pro-
duced revealed an increase inr the month of nearly
ixso and a halt million pounds. This represents a per-
tH-ntage gam ot 11.40 p, r cent, and proved to be some-
\vhat ot a banner month. It aided this group to report
an iiH'rease over the entire year's production

ino^ '^'''"*'' ^*^*,^'^'l"'-. withdrawals for December,
IJuh, as compared with December, 1U37, are as follows-

Product

Tt.t.il All tlasses:

I iimd .State . . . .
J'liilipinne lslan<U
I'lurto Hiro

December, 1938

Increase or Decrease
Quantity Per Cent.

3.J3,981,r.23 - 2.179.876

14,.W4.151 -f 387.454

135,495 -- 81.455

0.65
2.77

Grand Total 348,501,269 — 1,«73.877

I^ittlc Cigars:

Ciiitcd State- .
Philippine Islainl-
Puertti Kico

I<t/,r5,133

282,533

Total

10,675,133 —

282.533

Cigarettes :

I'nitccJ Statt- . . .
Philippine Pslamls
J'mrti* Kir«»

Total

l.arKf ( i|4artttt -:

I'nitid .Statt - . . . .
Philippine Islands
Piurtn Hifo .

Tt.tal

SinilT ( Ih- ) :

All Cnitt.l Stalls

Tohacco (Chewing and
Sniriking) lbs.:

I nited .States

Philippine Islands

■l'«»tal .......

Ii.n55.993.013 -f 45.374.8f,0
71.03(1 — 30.780

I2.656,(K>4.043 + 44,834,3M

291.297 +
1,(MK) 4-

S6.0fW

l.mM)

20,000

292.297 4-

37,006

.398,232 —

1.50(5

23,72R.246 + 2.4^,185

23.728.246 + 2.428.185

0.53

2.58

■ • • •

2.S8

0.M

OM

23 80

14.60

0.04

1140

....

11.40

Thf Tobacco World

<,^!l^5'^"

^

f^'^J^

v^hesterfields give me
more pleasure than any
cigarette I ever smoked

A HAPPY COMBINATION OF THE WORLD'S BEST TOBACCOS

Ct^fri^ 19J9, liccaTT & Myeks Tcmacco Ca

February, it^jg

Cigar Output Down 3.36% in 1938

STAID and somcwliat slothful market greeted
cii;ar prodiu'tion in the Tnited States during
the year just passed aecordini;- to statistics
coiiipded hy Thr Tabann Mrnhmits Associa-
lion liaromrtcr. With complete ti-nres registered
ciiiar i)roduets tinished tlie ealendar' year with a de-
crease ot A.m ])ei- cent, as compared 'with 1937 Al-
though .) i;rsj4.^,4:!4 eiuar withdrawals is noted for all
classes, this ,s 17S,(;8S.J>1>(5 less than the previous year
A niore deriressm- situatiim arose in the little
vi^nr field where l>1.I»L> per cent, decrease developed
atter a ].....,• season. A little in excess of l.VMmOOO
were prndiuM'd and this fi-ure was 4;:,(;n(;.:,{n short of
tJie numhci' plac-d cii the market in 1!>:;7.

Ciuarette mannfactuiinu hninhled to the forefronr
with a oain of (m;4 p,.,- ...nt. as w..^ cxp., ted. Notable
increases n, cman-ft,. consumpiim, has been seen in
Hinnthly n.pu,t> ali y.nr. Lar^v cigarettes have been
mmble t(» Imd a .-...-..piiv,. niark.i and closed their
yenr^ bonks with a !a:i p<T .-..i.t. decrease.

Snnir prnducti...! nM-.-v. , .-d itself in time to report
a unin uv.-v hi>\ year which encoura-ed i^roducers even

^'::^.t?,^;;:,r»-^*^'-' ^'^" ""'> ^-"^ i'*"'' -■"<• '^^J'- total

nt .M ooJ,,>.>P pnuinN n\ Hintr withdrawn durin- 1938 k
n<-nrlv 4(HMH,n p„und. <>ver Inst year's tio-ure

SuH.kinu and chewinu" tobacco also found a fairlv

itiuo^"';'^'' "'"^ "•'"' ^'''""^'' -^tl» ^'» increase of
of 3nT9^s 4!,o ;»'''-'f ^»^- ^H.n oi i.nc; p., ,,nt. A total
or iiii.)..i_'N.4:t_' |i()niiils wiTc iinulncod.

Iiijiwrts „f ,.it.„r,s fiMin ihe l>|,ili|,,,i,„. Islands
show.., tluy w,.,-,. hohind in Classes A. I nn.l D bu
sl.o«-,.,l ..uns u, Cla^,.- , ,,„,1 E. TImI, total o.itjul

Product

CiKars:

Class A—

United States

I'hilippine Islands
Fuerto Rico

Total

Class B—

United State- .
I'hilippine I>laiid>
Puerto Rico

Total

Class C —

United States ....
Philippine Islands .
Puerto Rico

Total

United States

Philippine Island*
Puerto Rico ......

Total

Class K—

United States

Philippine Islands .
Puerto Rico

Total

Calendar Yr. 1938

4.544.(.2().il5 _

184.350.080 —

1,153.070 —

Increase or Decrease
Quantity Per Cent.

Ki8/,0 1.500

4,50<j.f.55

24,059,155

2M
2.39

4,730.123.365 — 137.1o7.310

2.82

5I.'''''>.480 —
87,890

3.900,637
^2,600
CA3,200

?.0J

51,855,920 _

4,866,437

8.58

5ol. <;.;.; fi] 4

283.531 -i-
097.750 —

f».45I.M0

4,585

50,650

502,934.295 — «>,497,455

36.430.

2^0.63?

4,000 +

4,755.911

131,408

4,0(KI

36.691.448 _

4.883.319

4.074.932 —
18.354 -4-

979.488
7,804

4,W3.286 _

971,684

10.75

10.74

11.55

11.75

19.38

19.18

an behind last year by 4,908,274 or 2.58 per cent, less

Y ; P ^^"^ta.ned decreases in all other classes

N/Mther of these island territories produced anv litUe
cj^ars dur.n., the year. Ci^^arette imports from tie
I iHbppines wound up the year ahead >f the previous

off ncil^lv^JSr^'^ ^^"^'-^^ ^^- ^^-^^^^^^^

5.0 Sillier \\:w fe!!^ ^::!^;r?.i:«!:i:r;^

lH>r cent. So.ne four and a halt" billion of t^'l:;'^

(HHMcH^the cah.idar year wnuliuK up with minus 7.02

Class K ci-ars slumped durin- the vear (»ver HO -
00 00 tor a h.ss of 10.75 per cent. Tln-rc were 5 l!.

0 ..I 4.,0,,.>., ,n ( Inss I) ci-ars was less bv over four
and thrc. ,p,nrtcr millicm the 1I»:?7 fi-ure; or .,

1 J-- P--'nt Tin. largest inclividnal?". en a'.!"^^^^
<"-'"'-d ,„ Class K ,vh..n. 4.(>74.!.:;2 cigars ndu^^^^^
-Pn-nt.d a deticit of f,7:. 4ss to. a lo^; <,f \!:^\::l

The ciii.,rettc industry rcaclic-d a new hi-h bv in
;;H.as,n^ last yt.u- s output over a billion n,on Mnnu
tacturers reiiorted HL*] <ris -,n« 'M'^ * • "" " • -uanu-
niarkct whi,h V//'/'*"';' '^'^-'^'^-'l:' ^'luan-ttes put on the
Hi iK«t uJi ch disclosed a -am ol cxactlv 1,o:}2,l>9'^Hr,()
Th. onthH.k ,n tins phase of the industrv is ve;; bl'b^t
and citrarette n,anufa<turers fullv exneet \n r^fr
tln-ou^rh towanl anothc hanncr 'Zrh^mn '"*'"

statistics u,vin- a picture form of trade in all

Product

Total All Classes:

United States

I'I'ilippine Islands
Puerto Rico

Calendar Yr. 1938

. 5.138.748.434 ~

184.99f..,5l0 —

1,953.370 —

Increase or Decrease
Quantity Per Cent.

178.688.926

4.908.274

24.789.005

3.36
2.58

(irand Total 5..?25.o98,314 —

Little Cigars;

United States

Philippine Islands
Puerto Rico

Total

CiRaretfes:

I 'nit« <i sfatt ->
J'liilippnie Islands
Puerto Rico

Total

I-arge CiK.ire tt* h:

United State-
Philippinr Mands
Puertc. Hi,,)

Total

Snuff (lf)s 1 :

All I nitcd States

' "' ' lieu in(j and

.SmokinK ' n»H :

l-nited States

Philippine Islands .

Total .........

I55,28.?,4iy _

208.386,205

43,0(>6.591

30.400

1,5W>,680

3.77

21.92

155,^3.419 — 45.14.1,671 Z2,S2

163.6S8,5(».313 + 1.0.^2.«i92g50
l,6ri0.503 -f H2l'826

J.914.120 _ ^,1;^'

0.64

163.664.(M2.936 + 1.032.853.276 "lii

2^73S72 -^

1,161 _

279.011 —

298.978

2.671

33.489

3,054,144 —

335,138

^7.333,9X1 4-

399.7M

9.73
10 72

9m

1.08

305.928.492 4-
47 +

5.004.252
36

\M

305.928.539 4- 5,W4.^

1.66

Tht Tobacco World

Cigars are the
most pleasurable
and econumical
form of smoking.

BAYUK BULLETIN

Devoted to the
best interests
of the men who
•ell cigars.

First Issued 1929

JANUARY 28, 1939

PHULOFAX

(The Retailer's Friend)

SAYS

He said, — "Oh, I've
plenty of time to make a
Koo<l showing in 1939 —
heck, this is only Janu-
ary."

HE SAID — "I'm going
to start rolling up in-
creases RIGHT NOW . . .
\getiing increa.ses in January is a
heluva sight easier than trying to get
i't-ni in December."

B. C. R, pcstals in to Phil,— "I was

Ireadinp a 'business l»ook* the other
eveninjr and found the an.swer to a
probliin that has been handicapping;

Inie in my results for over three
vear>.

"\erily. eh, vcrily," said Phil, "A
little Learning of KnowUflge kills the
bitf yearning for Results,"

"Tiy" is the limpest word in the
English languri!'.' . . . charge your
mind not to TIJY to do a thing —
charge your mind to DO it.

February is the sborte.st month of
the year. That's not news.

February* has two holidays. That's
not news.

These two holidays provide oppor-
tunity for sales of Cigurs By the Box
— and that's i»t news to progres.si%e
retailers.

If you can collect you can sell if
yt)u can collect.

Every consumer who got a box
of cigars for Christmas is a real po-
tential customer for Cigars By the
Box throughout the year because Mr.
Smoker has discovered the conven-
ience of having a box of cigars at
home. Sell Ciga» % the Box.

Don't overlook the necessity of
keeping your cigars FRESH and in
nice salable condition these wintry

Alex Smart wants to know If any-
one needs a cigar salesman who has
learned the lesson that the only way
to make goo<l is to MAKE GOOD by
KESULTS. ^

Listen to C.P.C,— "Sure I worked
hard to Hin the contest but I'm happy
that I n-on . . . you never heard a. man
cuss and swear after running for a
trolley car when he CATCHES itl"

IMD b GOING TO ni a irr<»t
cigar yeai^lefs WIIX and WORK
for it to b» mI

IK B. I.

"SALES-DOGGLING"

or How Not to Sidl^No. 33

The Boss ha.s been very much elated at the success of increasing
the number of cigar smokers in con.sequence of his 20 Cigar
Boofiters Boosting Ciuars to consumers, as told in last issue. We
now end the Ikws talking over another idea with Otto Noebetter.

BOSS: You know, Otto, if we
cigrar salesmen want to see
more cigars smoked up, we've
jrot to make folks more cigar
conscious. Do you know what I
mean?

OTTO: Sure I do. but to check
back on you — what do you
mean?

BOSS: Well, here's a simple il-
lustration. — suppose you were
going to have the gang up to
your house to play poker . . .
maybe some of the boys smoke
cigars and maybe .some don't.
The thing to do would be to offer
cigars to all of 'em — thus, you
make *em conscious of cigars.
Get me?

time, he is apt to use less than
if he had a Five Pack . . . same
way. he is apt to use more cigars
if he buys a box of 25 or 50.
OTTO: Then what we salesmen
should do is to encourage dealers
to push Five Packs and cigars
by the box.

BOSS: Righto, Otto, righto. Get
the dealers to display cigars, too
— in the windows and in the
store. Get the dealers to continu-
ally remind Mr. Man that
"Cigars are the most pleasur-
able and economical form of
smoking." Don't you think more
cigars will be bought and smok-
ed if Mr. Man SEES Cigars ? Did
you ever go into a haberdashery

OTTO: By gad, Boss, you're store for a couple handkerchiefs
right. When I was up to Bill and then buy one or two neck-
Jones last week, he didn't serN^e^ies?

cigars and only 4 cigars were | OTTO: Certainly. I did and I
consumed during the evening bought 'em because I was
and I smoked all four. Last I "tempted" to buy 'em.
night. I had a box of cigars set-] BOSS: Same way with cigars.

ting right along side the table —
told the boys to help themselves
. . . 22 cigars were smoked up!

BOSS: Otto, you've got the
point 100<^r. The easier it is to
use a product, the more of that
product will be used. Then too
the more of a product a user
has, the more he will use.
OTTO: Just don't get you there.
Boss . . . talk to me using cigars
as an illustration.
BOSS: Okay, Otto. I mean if a
smoker buys one dgar at a

Otto, and if we could only get
each cigar dealer to sell just one
more cigar per day, man, what
an increase cigars would roll up !
OTTO: Quit your kidding. Boss
— that wouldn't be many more
cigars. Do you mean just one
more cigar per day per dealer?
BO^: That's exactly what I
mean. Otto. We've got 12.000
cigar accounts on our books,
Otto. If each dealer only sold
one more cigar per day, do you
know what that would mean per

Prepared twice a month

year in the way of increased
cigar business ?

OTTO: Not enough to get ex-
cited about, Boss.

BOSS: No? Well, it would mean
4,380,000 more cigars — get that,
— almost four and one-half mil-
lion more cigars ! !

OTTO: Four and one-half million
more just in our territory, eh,
Boss? But we can't guarantee
that each dealer will sell one
more cigar each day, can we?
BOSS: No, Otto, you can't guar-
antee it but I'll bet you a load of
coal against a load of ashes that
if we .salesmen do our darndest
to get each dealer to sell one
more cigar per day, MORE ci-
gars WILL BE SOLD than just
by sitting around chewing the
rag and waiting for the "In-
dustry" to do something.

Get the dealers to serve cigars
a.s they should be ser\'ed . . .
talk up Cigars By the Box . . .
make popular the idea that
Cigars are the Gift to Man on
the many occasions when Gifts
or remembrances are appropri-
ate, etc., etc. and etc.

We salesmen as Salesmen,
each by himself. CAN IN-
CREASE cigar consumption if
we become CIGAR salesmen.
Let's be cigar conscious our-
selves . . . let's get our dealers
cigar-conscious and by our com-
bined efforts we'll make more
smokers cigar-conscious. What
say. Otto, what say ?

OTTO: Boss, you've sold some-
thing. I've got 782 customers
who are going to hear the great-
est Cigar-Conscious talk they've
ever heard. Why, man. all by
myself I can do something for
the Cigar Industry and. say. I
can help myself too in sales.
Let's see now — 782 dealers each
selling one more cigar per day.
Thunder and lightning! Wliv,
that's 285.430 MORE CIGARS!
Suppose I don't score 100%?
What of it? Suppose I only get
50.000 more cigars smoked up
this year. You've got 20 men —
why. Boss, that's a million more
right in this neck of the wckkIs.
We. SALESMEN, can IN-
CREASE CIGAR CONSUMP-
TION ! Boss, watch my smoke ! ! !

Phillies

(BAYUK PHILADEIPHlA PERFBCTO)

Havana Rihboo
Mapacuba

Oiarles Thomson
Prioce Hamlet

■ ATtIK •HANDS BUILD BUSINESS

POPULAR LEADERS

By P. Lorlllard Co

BEECH-NUT

UNION

LEADER

OLD GOLD

Double Mellow

Cigarettes

LILLIAN

ROCKY
FORD

VAN

BIBBER

5 tor 10«

SENSATION

20 for 10c

BETWEEN THE ACTS

1 « pkg. of ten

STOCKS OF LEAF TOBACCO OWNED BY
DEALERS AND MANUFACTURERS

]T< M 'J\S nl" Jcit Inhaccn nwili'tl hv (I«'ai«'l> iUld

iiinimtnctiii-.-i^ in t},,. Initcd Stato ami Pu«'rtn
l?ici» nil .Ijnniary 1. l:»;!M, aiiinimij'd tn 2.342,-
."»!):;. (MM) )M,iiin!-. ('<.jii|iai«'«l with l!.222.nl!MHMi
iwtindv on Jaiinaiv 1. ]\K',s, I'inni nctnJMT 1, WKIH, \u
.r.iimniv 1, llClli. fntal Mwks iii,i<a-.(l 11.Vj64,(MM»
iMiuihU. coiiipanMl witli an iii<r.a-c uf 174,831,CKHl
Ih.iiikK ill till' la-t «|uaii«'r nf 1!>;I7.

8tt»('k> nt' tlm»-(-iji«i| lolmcMn hh .lainiaiy 1. in'19,
woro 1,nr;,Sii;:i.(MHi puuiiils. imly -liulitl> unilcT -tnrk- n\'
a vi'ai- auM. The -tuck- it\' Ty|M' 11 \v«'i«' r('|»nit(Ml as
44n,<;.'ls,nnn |iniin<l-: TyjM. 12 a> .■!;!:».277,(MMi |H»un<l>;
Type 13 as i;»n.:i4s.nnn iiinnul^; aad Ty|ju 14 a^ ssjUisj
(KKl poninls on .laiiuary 1, IIKJM,

S'tocks of Him -ciirpd inhncpn wore re|wrtt'cl a> 144.-
1:»4,<MMI iH.umU on Jaiiua?> 1, i:»:;!». c-ninpnrod with 142,-
WRMMMJ |M»und>'(iii .lamiary 1. i:»:;s. Virunnia fir«'-fur<Ml,
Typo 21 stocks w.'K' n-|M,iif.| a- 2r),137.<MM> |K>umls
Tyj... 22 a- :»l.Nn.(MK) pound- Typi- 2:1 a^ 2»;.3*>8,(Mm!
poiiiHls; and Typ<' 24 a> s4H,nn() )ioundK.

Biiih-y >tocks Wire about I»7 million pounds hijrhor
oil January 1, i;);}!». than thoy wen- on January 1, V.rAH.
The January 1, l!>:i!». report hIiows <;44.4r)l.fMM') pounds.
Maryland tiihacco. Type ."'2 stocks, wn,. ie|Mjrted as
36,4H3,ri( Ml pounds on January 1, ir»3!».

(hic Hucker stocks on January 1, Hi;i«». were 2h,.
22(),(KKI pound-: (ln-i-u Riv.i, 2n,nV2.(MM» pounds; Vir-
ginia sun-cured, 2,WH.ono pound-; Kastirn Oliio,' 7(lO,-
(KX) ponn<ls; Perhpac, H4n,(MM» pounds; other niisci'llane-
ous donicHtic, r)(i3,(MM» pounds; and foreiun -town cii^^ar-
ette fohaeeo (Turki-li an*l rdher), Hr),23lMMHI pounds!
to

STATUS OF TOBACCO
STOCKS AS OF JANUARY 1

TOCKS of Anierican-i»rowu cinar-filler type
stocks amounted to l()4,4(i7,()OI» pounds on .lan-
uary 1, l!»3!l, a little more than 2'i.. million
pounds lower than stocks on January 1, 11>38.
Type 41, Pennsylvania Seedleaf stocks on JJmuarv 1,
1J*;{!>, were H(),4!M),0(H) pounds; Type 42, (Jehhardt, *1(),-
383,01)0 ]M)unds; Type 43, Zimmer, 14,880,000 ])ounds;
Type 44, Duteh, lO,41(i,000 ))ounds: Type 4:>, (JeoiVia
and Floiida Sun.urown, 2.427,000 pounds; Tvpe 4(),
Puerto li'ican, 31,(i2(;,000 pounds in the rniteif States,
and 14,24:),000 pounds in Puerto Rico. The detailed re-
jM.rt by unmps of grades shows that of the total filler
type stoeks repented 72.2 i>er cent, or 118,81(1,000
pounds are in the (' i^n-oup or sti'ictly tiller grades; 14.2
per cent, or 2.*),3.V),000 pounds are X uroup or stemmiii*^
^ra<les; and !).8 per cent, or 1(1,171,000 pounds are V
.urou)> or farm fillers and uround leaves.

The cii;ar binder ty])e stoeks, some of which arc
used for wrappers, were about .')•- miiruui i>ouuds
higher on January 1, 1<>3!>, than they were on January
1, 1!»3S. Total binder type >tocks wer<' i«'p(»rted as
12o,:;(;2,000 p<»unds on January 1, 1!>3!I. Type 51, Con-
necticut Hroadleaf stocks were reported ."is 2!),(;9:),000
|)ounds; Type 7)2. Connectieut Havana Seed, 24,709,000
pounds; Type :)3. Xcw York and Pennsylvania Havana
Se<'<l,_ 1,(;73,000 poumls; TyjM' 7)4, Southern Wisconsin
37,!»4r).000 pound-; and Type 7)5 Xcuthern Wiseonsin,
2(1.340,000 pound-. Tie- dCtaiJed r,.port by uroups of
uiad«- -hows that of tie- total binder type stocks re-
poiie<l about 2.8 p,i cent. «»r :i.:!:is,(Mio "pouinls are of
wiapjMi- ipialitv, .about 4.'>.2 jiei- eent. or 7)2,002.000
pnund- are bimleis. al»oiit 1.7 iiei cent, or 2.02s,(KM»
pound- are fillers, and about ."»l.s per (Miit. m (i2..';7:>.ooo
iioiind- are X ur(uip oi- -temminir jrrade tobacco.

Shade mown wrapper type stocks were r.-porled
on January 1. 1II3I>. a> 13.147,000 p(,und-. Connecticut
Miade -tock> Were s,f;is,(ioo poiiud-. and Ceor^ia and
I-'Inrida Shade -lock- were 4.7»2!>,00(» pounds. Of the
tnial wrapper type -tn.k- reported, ll,42o.ooo pouml-
aie shown III the A uroijp a- beinu of a.tiial wrapper
(plality.

The foreiunmown ci.ifar-leaf tobacco -fncks in the
I nited States on January 1, ll>3!», consisted (d' o,!>s5,oon
imunds of lulm (Havana) tobacco, 2,247,000 pounds of
Sunmtra and Java, and -M81,(mm) pounds of Philippine
Island- (Manila) tobacco. The detailed reptut show-
the.c stock- subdivided into wrapp».rs, tillers, ami
scrap.

FATHER'S DAY PLANS

KJHKP. lM»tter and brighter than ever— to
adopt the phra.seoloiry of the *'bi«r top"— are
the plans for the 193!» Father's Day, which will
be celehrated on June iHth. This vear buyers
ot ciirai-, .iuarettes ami all other tobacco pVotlucts'will
be made conscious of Father's Day as never before,
thrmmh the biir-evt pronioti<»nal aunpai^u <'ver put
behind this annual ©vent.

The country wide campaiirn will Ije finan.ed from
tlh' proceeds of an official jjoster bv Howard ('handler
Christy. Behind the movement is the Xational Council
lor the Promotion of Father's Day, a non-profit c(»-
operative orffanixation represent in«r and en<lorsed bv
evj-rv industry,

Tkf Totneco Wot Id

AGAINKi

1^— M— iM»— jpi^—a nfmrmaaw"^

1938 SALES 65,000,000 ABOVE 1937-

MOUNTING DEMAND FORCES $400,000

EXPANSION IN PLANT AND EQUIPMENT

Demand for America's biggest selling cigar
continues to soar, making new profits for dealers
and jobbers everywhere. 1938 sales were 161
more than the previous banner year of 1937.

What a record!... 1938 climbing over '37 by
16%; '37 beating '36 by IS^fc; '36 topping '35 by
19%; '35 exceeding '34 by 29%; '34 shooting
67% over '33.

And now another enlargement of the huge
King Edward plant. ..world's largest cigar factory
under one roof.. .is in progress. These improve-
ments, costing $400,000, are the second major

expansion since 1935. The photo-
graph above shows the King Edward
factory as it will appear when the new
wing at the extreme left has been
completed.

Year after year King Edward hits
new peaks in popularity! New peaks
in profit-making for dealers and job-
bers. Keep full stocks of America's
most popular cigar on hand.

Prosper with King Edward!

JWO, H, SWISHER & SON, Df C. Cigar Manufacturers JaCkSOnVllle, FlOlida

FINNEY HEADS NATD

r a meetinjr of the Board of Directors of the N.
A. T. I)., held at the Palmer House, Chicagfo,
Saturday afternoon, January 21, 1939, the fol-
lowing officers were duly elected for the year
1939: Chairuuui oi' Board of Directors: Allan ('. Davis,
F, A. Davis & Sons, Baltimore, Md. ; president: Henry
J, Pinney, H, K .Shaw Co., Worcester, Mass.; treas-
urer: J. UowA P^dwards, F. S. Edwards Tobacco Co.,
Kansas City, Kansas; secretary: Joseph Kolodny, Jer-
sey City Tobacco Co., Jersey City, X. J.; senior vice-
president, Kd. C. Dearstyne, Dearstyne Bros. Tobacco
(^onipany, Albany, New York; second vice-president:
Alex. Schwartz, Keilson Cigar Co., Cincinnati, O. ; third
vice-president: .louutban Vipontl, Scranton Tobacco
Co., 8crant<Mi, Pa. ; fourth vice-president, Sam X.
Qrossinan, Chicago Tobacco Co., Chicago, HI.; fifth
vice-president: Fred W. Winter, Winter Cigar Co.,
Denver, Colo.

At the closing session of the convention held at
the Palmer House, Chic4igo, Saturday afternoon, Jan-
uary 21, 1939, the following were elected directors of
the X. A. T. D. for a period of three (3) years:

Allan C. Davis, F. A. Davis & Sons, Baltimore,
Md. ; Ed. C. Dearstyne, Dearstyne Bros. Tobacco Co.,
Albany, K. Y.; Joseph Kolodny, Jersey City Tobacco
Co., Jersey City, K. J.; Alvin Linker, Linker Cigar Co.,
Louisville, Ky. ; Clarence D. Hunter, Joseph P. Man-
ning Co., Boston, Mass. ; Jonathan Vifjond, Scranton
Tobacco Co., Scranton, Pa.; Fred Winter, Winter Ci-
gar Co., Denver, ^lo.

Mr. R. D. Burnett, H, H. D. Burnett Cigar Co.,
Birmingham, Ala., was elected as director to finish

Ftbrwuy, /pjp

the unexpired term of oflice of his father, which expires
in VMO.

Mr. Kdwai<l (irauei-. Met rojjolitaii Tobacco Co.,
Xew York <'ity, was ejected as direcior to tinisb the
unexpired term <d' ollice of director leti vacant by the
death of Arthur .M. Kisiu, whose term expires in 1939,

Mr. Moe Packer, Packet- l>r<»s., Xew York < 'ity, to
succeed Xelson Eberbacli — term expirini:: 1{)39.

The directorate of the X. A. T. I), at present con-
sists of the followiu'f :

Charles F. Becker. Cha>. I*'. P»ecker Cigar Co.,
Detroit, Mich.; IJovd K. Black, (lohlsmit-Black, Inc.,
Pittsburgh, Pa.: B. D. Burnett. 11, P. 1). Buriu'tt Cigar
Co., Birmingham, Ala.; Allan C. Davis, F. A. Davis &
Sons, Baltimore, Md.; Hd. C. Dearstyiie, Dearstyne
Bros. Tobacco Co., Albany, X. Y. ; J. Benz Edwards,
F. S. Edwanis Tobacco Co., Kansas Citv, Kans. ; Ed-
ward (Jrauer, .Nb-tropolitan Tobacco Co., Xew York,
X. Y. : Sam (irossnuin, Chicago Tobacco Co., Chicago,
III.; Henry (Junst, ClitT Weil Cigar Co., Richmond,
Va. ; Eniil Harms, Peter Ilauptnuum Tobacco Co.,
St, Louis, Mo.; Ed. \\\ Harii>, Hamilton, Harris &
Co., Indiaiuipolis, Ind. ; Claude llariison, Ouachita
Cigar & Tobacco ( 'n., Moni-oe, La. ; ( 'larence I). Hunter,
Joseph P. Manning Co., Boston, Mass.; Josej»h Kol-
odnv, Jersey Citv Tobacco < '(»., .fersev Citv, X. J. ; C. B.
Leidersdorf, l^wis-Leidersdoif Co., Milwaukee, Wis.;
Alviu Linker, Linker Cigar Co., Louisville, Ky. ; Syl-
vian Mirsky, B. Mirsky & Son, San Francisco, Cal;
Moe Packer, Packer Bros., Xew York, X. Y. ; Henry
J. Pinney, H, E. Shaw ('<»., Worcester' ^tass.; Alex
Schwartz, Keilson Cigar Co., Cincinnati, O. ; Jonathan
Vipond, Scranton Tobacco <'o., Scranton, Pa,; Fred
W. Winter, Winter Cigar Co., Denver, Colo.

tt

NOW...FOUR EXTRA COUPONS

in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamson Tobacco Corporation

PERPETUATE TOBACCO RETAILERS!

{( nut I mil il tt 1)111 jHiffi "J )

Proposed Policies

This Council will ln'iiccl'nrtli rvolvc policies <li-
rcctod towar.l the rchahilitalioii of the i-i'taih'r. Anioim
its vai'ied activities may he the lollowiiiir:

1. Collect data ]>ertainiiiu' to new tj'ndciicies in
merchundisinu and release >iich data «'ither directly t<.
the ietaih'r> or thronuh johheis' salonien.

2. Kvolve and disseminate to th«' retail trad<' niei-
cliandisinu plan- eiili.i in deal l'oi-ni. comhination form,
or any otlu-r I'orm acceptahle and invilinu* to the pre-
i'nt-(hiy consumer.

''.School the ret.iil.'rs how to ))ro|)orlv liumidit'v
tlieir ci-a'- and tohacco *;,.,.. It i. rather paradoxical

to oliserve that \vher«a- a urocery clerk will )>efore

dcpartinu home — pnt hi> fruit, etc., into a retViir<'rntor ;
tile same clerk will leav.. the -tme at niuht with $r>(i.(Mi
or $l()n.(Mi woith of ciuar- expo>ed t(» atmospheric con-
diti(nis under which they become drv and iion-smok-
able.

4. Dissi'miiiat*' iiiformation d<'simied to stimulate
the retailer to tin* importance of chanuiny- his present-
day meth<>ds and thtr- r-ndeavor to keep Ids store in a
more tidy con»lition: to convince liiin of the value of
win<h»\v and count<'i- di-play in huildinu sales volume;
to api|ly oth.r mea-ur.'- ealcidated to <lrnw onstomei-
into his stole.

.'). Con-iiler the practicahility of providinir for na-
tional distribution a talkiim pi<'tiire depictinir The proc-
ess of national pi<-ent-<lay retail im'rchandisintf. Thi>
lilm to l)e shown in various communities to audience-
eonsistinu of retailers who will be importuned by tin-
joblu'rs' sah-men to attend tlie showinir.

<;. i:m]iloy competent retail -peciali-<< who wouhl
spend their time in the liehh call meetinus of retailer^
and irraphieally illustrate to them the manifold phases
of present-day nierchaiulisinir and chanu* d consumer
attitude.

7. Awaken distrilmtors to the imjiortance of ren-
derinir tln' retailer specialized iiiorchandisinir coopera-
tion. Too frecpiently wr- find that each of a half-dozen
of jobl)ers in a given territory stock u}! th.' retailer with
quantities of merchamliFo decidedly in excess of his re-
quirements. y,'t without a suitable and prarticabh-
method a- t.. the manner in which the merchandise can
be profitably dispo^<d of.

8. Wherever possible, effectuate an umhrstandin.-
amonir several jobliers in a iriven territorv under which
they w(mld furnish the retailers- at reindar inter^-als
— a sales-compeliinir window dross in jr service and thus
assure a more invitinir appearance of th.' .tore to the

l)a>serby. {.Many of us have, on mmier<Mis occasions,
deplored tlh- external appearanc<' of stores.)

-Many of you miuht view these suiruestions as fan-
tastic and unattainable, jjeinu' a firm believer in or-
uaiiize<l effort, 1 know that anylhiim is within reach if
-ullici.nt (Muiscientious a|)plication is uiveii it under the
uuidance of enliuhteiu'd lead«'rship.

Of course, some of you iiiiulit presume that I have
(.verlo(»ked a rather siiiuificant point -linances. \ have
not. In propc.sinu- plans to this industry, I am always
takinu counizaiKM- of th,. cost involved." T will, tliere-
fore, add that the remmmendatious can be carried out
at a mo(h'st and reasonable c<»st.

The i»reservation of the retail merchant is of vital
<«uic.rn to the manufacturer and distributor. Since,
as individual^, lliey ar- either not equipped nor <hi they
po^..-.. tin- facilities fn inauuurate an educational i»ro-
uiam (lir<'cfe<l toward advaiicin- their nierchan<lisini:
1< chiimiK , then it is .»nly logical that thev manifest suir.
pnrt of a movement that is launche<l for that imrpose.

In conclusion, let m.- fuither <'mpha-iz< — business
trend- nowaday- are a<suminu n(»vel complexions.
Hone are the days when >hippinu- a jtroduct to the cus-
tniuer com|.lete<l the sale of the produi-t. Into eternal
nblivKm has vanished the era when a manufacturer
iiimht produce a produet ; send out a crew of salesmen;
Jiiake a sale and for-ef about it. Business also is im-
bibinu some of the -(.cial tren.Is of the Xew Kra. Mu-
tual r.-sponsihility, mutual conlitlenc*' is coming to the
lore.

HOLLINGSWOETH RESIGNS

n.MAM A. TTniJjynsWOUTII, President of

the Retail Tubacuo DeahMs of America, Inc.,

since its onrnnizafion live an<l one-half years

ago, resigneil on Febrnarv 1st, his resiirnation

to become efTective on March intli. He b'aves oflice to

Kivc his whole time to his new duties as national sales-

manauer of Dunhill Sujierior < 'iirarettes.

In tendeiinu hi- resit,rnatio?i, he wrote: "It has
beena jrr.at privilege, ami a distinctive honor, tr) have
serv^ as J'resident of the Retail Tobacco Dealers of
America, Inc.. these pa-t live and one-half years. To
say that I have enjoyed your association and com-
panionship (lurin- this periml would be expressing far
too mildly the emotions that rise within me wIh'U I
think of the happy and fruitful years w«* spent toi^ether.
A- is true of all life'- v.-ntures. we were not always
entirely -ijc. .-..ful, but I am -lire you feel as I do that
• Mil eni.rpri-e was never lackiim.aml that our under-
takimcs wert' always honorable, and our objectives
piaiseworthy."

Th* Tobacco IVoHd

BAYUK EARNINGS INCREASE

AVl'K Ciuars Incorp<uated and Wholly Owned
Subsidiaries report net earninirs for year
endinu- December 'M, IIKIS, ,,f $l,:^(M),!Hl:).2r,
eijual, after preferred divith-nds, to >.'!.( d per
shart' <'!! common stock auain^^t net earniims of ^i^s.'),-
ni1.<!s e(|ual, after preferred dividends, to >2.17 ]ter
share on conmion stock for the year II'MT.

In his re)iort to stockholders, A. .los. Xewmaii,
Tresidi'iit, stated that in spite of th<' fact that UKIH has
been a <liflicult vear for industrv as a whole, Bavuk
salt's foi- l!».'!s have sh<»wn an increase over l!>.'i7, the
-ixth con-ccutive year in which sah's of Phillies have
I \ceede<l those of the pre\ious year.

Mr. Xewman further stated that " Xo chanires in
the capital structure of your company are necessary
or contemplated. Followinu* the ireneral policy of tlu'
two ]>revious year.-, your company called for redemp-
tion 4rKM) shares of tin- first ]»referred stock in Janu-
ary 1.'). lIKifJ, the necj'ssary funds beimr provided from
workimr capital. After pntviilinu for thi-, net work-
ing capital on December ."d, llKjs, was $7,.')4!»,4:it).!»'J, an
increase of JiJ.V)l.t»r»Ii.»).H ov<'r the amount of this item
a< of Decemln'r Ml, 1!>'I7. It i- the intention of your
manajrement to etTect a iri'adual retirement of all the
first preferred stock in this manner.'*

LEADING ADVERTISERS

nRTVTU'o advertisers placetl more than

.■s 1 .(MM i,t H M I worth of a<h'ertisinir each in mair-

azines. farm pajiers and nn the radio last year,

a«-cordimr to Prhifir<' Inl\ P. Lorillard,

Philip Morri- and Brown iV William-on climbi'd into

this sidect li-t, joining honors N\ith Ciirarett & Mxeis,

American Tobaeeo and R. .1. Revnolds.

American, I iL-uett iV Myir- and R. J. Reynolds—
which are anionic the first cuht of all the ^rtv-two
advertisers in this class^-peiit *1M.7n7,366 in* 1938
compared to *12,!»7b,n22. More than that, each indi-
^'idiial company increa.-*e<l its appropriation, so that —
during last y< ar IJirirett & Myers ranked fifth amontr
all typ«»s of collet. riis. AiJM ricaii Tobaceu sixth and I'. .1.
Reynold- li-^^hth.

Liifirett iV M,vers spi'nt s4.54b.i'.'Il in majrazine,
radio and farm papers in IIKI^. a i i-t ov m the $4,412,-
5t»H ill lli:{7. .\merican Tobacco's lijfure of *4,M63,IK)5
was rai-^eil to $4,II4H,2:il* hi-t year. R. .1. Reynolds'
amount was enbanced finm .t4,1!»7,r»riL» to $4/J42,Ut».3.
The totals for tlii- forts tWfi ad\erti-ers in the mib
lion dollar t-ateuoi\ were :^l():i,b:i:»,:i(»L> a- auain-t s;ln:),

I62,4:n.

February, ujj*^

SPRUCE LUMBER

for CIGAR BOXES

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

lor the Eye
for Shipping
for the Cigars

SPECIFY SPRLCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. J.

EtiahlUbcd IHH6

"BEST OF THE BEST"

Maatif*

^ A. SANTAELLA & CO.

Office. 1181 Broadway, New York City
FACTORIES Tampa and Ktf Wtmt. Floridm

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Ches^

Novelty
Wrapped

Are Outstanding In
Ouality-De siga-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, III.
Detr«iit. Mich,

Hellam, Vm,

Hanover, Pa.

Philadelphia. Pa.

Wheeling. W. V».

'3

Tobacco Merchants' Association
Registration Bureau, neV^yorT cm

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A-An allowance of $2 will be made to mcmberf of the Tobacco Mer-
thants Association on each registration.

Note ii—lt 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 (fl.CW) will be made. If it neccssitctes the reporting of more than twenty
(a)) titles, but less tnaii thirty-one (Jl), an additional charge of Two Dollar*
($2.00) will be made and so an additional charge of One Dollar ($1.00) wili be
made for every ten (10) additional titles necessarily reported.

TRANSFERRED REGISTRATIONS
"102":— 24,934 (Tobacco Liai). For cigars. Registered March 12,
190J, by W. H. Wolf. Marysvillc, Mo. Transferred to P. N. Jacob-
sen, Jr., Davenport, Iowa, and re-transferred to the Martin Cigar
Co., Davenport, Iowa, on January 10, 1939.
MARTIN'S 102:--36,096 a'nitetl 'Registration Bureau for the To-
bacco Industries), lor tiu.n^ Regis'tered November 4, 1910, by
P. X. Jacobsen, Jr., Davenport, Iowa. Transferred to the Martin
Cigar Co., Daveiii.ort. Iowa, on January 10, 1939.
PENOLA: — 45,228 ( lohano Minhaiits Association of the U S)
For cigars. Registered May 2, 1928, bv tlie Coraza Cigar Co., Per -
kasic. Pa. Transferred t<. Howard F. Pent, Jenkintown. Pa., on
February 3, 1939.

SAVARONA:— 29,663 (Tobacco Leaf), and 57.494 (United States
Patent Ofhct). I'or < JLTars. cigarettes, cheroots and tobacco. Reg-
istered May 17. P'n5, and November 13. 190r», respectively, by
Cayey-Caguas Tobacco (.O . Wu York. X. V. Transferred to
Porto Rican .Xnierican Toh.n ro Co.. New York. X. Y., and re-
traiistcrred to I'u.rto Rico Fobacco (.orp., Bavamon, Puerto Rico,
on May 15, 1938.

uSS^^.^^J.^P,, PUBLICATIONS (Transferred Registrations)

tL; . ' (lobacco Leaf). For cigars. Registered March 12.
1903. by W H. Wolt. Mary.ville, Mo. Transferred to P. N. Jacob-
sen, Jr.. l»avenport. I.-wa. and re-transferred to The Martin Co
Davfnf.ort. Iowa, on lanuarv 10. 19.^9.
MARTIN'S 102:— 36,096 rrnitcd Registration Bureau for the To-
bacco Industru'v). For cigars. Registered X'ovember 4. 1910, by
P. X. Jacobsen, Jr., Davenport. Iowa. Transferred to The Martin
Co., Davenport, Iowa, on January 10, 1939.

RE-REGISTRATION OF ABANDONED OR UNUSED

TRADE-MARKS

Notice is hereby given that an application has been f^led with us
for the registration of the following trade-mark and that same will be
registered unless we shall be advised of the existence of any vahd
rights thereto by written notice, setting forth specifically the basis of
such claim on or before the registration date set opposite the trade-
mark:

TRYLON (For cigars) February 15, 1939.

* Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based on

manufacturers' returns of production)

Month of October

_, , Increase or Decrease

Product 1938 Quantity Per Cent.

£>"? 4,344.306 — 423.587 8.88

Twist 444.336 — 146.673 24.82

Fine-cut Chewing 358.365 — 26,500 6.89

Scrap Chewing 2.151,438 — 1,703.484 44.19

Smoking 17,670.745 + 1,257,9^ 7.66

Total 24.969.190 — 1.042,246 4.01

Ten Months Ending October 31st
__ . Increase or Decrease

Product 1938 Quantity Per Cent.

P'uK 46.354.910 — 3.726.719 7.44

J.^'^* 4.400.816 _ 1.386,612 23.96

Hne-cut Chewing 3.923,342 — (,81.440 14.80

Scrap Chewing 35.775.322 — 2.783,145 7.22

Smoking 164.846.6^*4 -|- 7,405,023 4.70

Total ...■ 255,301.054 — 1,172,893 0.46

•i*^'l^.P["**"*'*'®" figures are in pounds, and are subject to revision
until pubhshed in the annual report of the Commissioner of Internal
Revenue.

'4

aCAR BOXES

T^

rt^'^g^co

Bstabitak«« un

OUR HIOH-GKADE NONEVAPORATINO

OG4R FLAVORS

Make tobacco m^Uow and amooth id charactai>
and Impart a moat palatable flavor

OAYORS FOR SMOKING and CHEWING TOBACCO

Write for Llat of Flavors for Special Brands
AKTLiN. ABOMATIZEM. BOX PLAVUBS. PASTE SWEETENEBS

FRIES & BRO., 02 Reade Street. New York

TOBACCO TRADE ORGANIZATIONS

TOBACCO MEROiANTS ASSOCIATION
OF UNITED STATES

<<g^

JESSE A. BLOCH. Wheeling. W. Va President

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

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

GEORGE H Hl'MMELL. New York. N. Y Vice President

S. CLAY WILLIAMS. Winstrn Salem. N. C Vice-President

JlLll'S I.ICHTENSTEIN. New York. N. Y Vice President

ASA LEMLEIN. New York. N. Y Treasurer

CHARLES Dl'SHKIND. New York. N. Y Counsel and Managing Director

Headquarters, 341 Madison Ave., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

ALAN C. DAVIS. Baltimore. Md President

EDMI'ND C. DEARSTYNE. Albany. N. Y Vice-Pretideat

.lOSFPH KOLODN^'. 200 Fifth Ave.. New York. N. Y Secretary

I. RENZ EDWARDS. Kansas City. Kan Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

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

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

I T. OLLENDORFF. 780 West End Ave.. New York. N. Y. ...Executive Secretary
ALBERT FREEMAN, 25 West Broadway. New York. N. Y Treasurer

TOBACCO SALESMEN'S ASSOCIATION OF
AMERICA, INC.

HARRY A. ABRAMS President

LEO RIEDERS. MOO Broadway. New York. N. Y Secretary

JACK EDELSTEIN Treasarer

RETAIL TOBACCO DEALERS OF AMERICA, INC

Wnj.IAM A HOLLINGSWORTH. 2X3 Broadway. New York. N. Y President

LOUIS KLEIN First Vice-President

ERIC CALAMIA Secretary

ARTHURS MEYER Treasurer

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

ALVARO M. GARCIA President

THOMAS C. BREEN- Treaaarer

SAMUEL BLUMBERG General Coanael

Executive Committee— Alvaro M. Garcia (Ex-oflScio). Thomas C. Breen, Harley W
Jefferson. D. Emil Klein, Walter E. Popper, Harry S. Rothschild, and Arthur
A. Schwant.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

BRUCE G NEBINGER. Red Lion, Pa President

C. M. EHEHALT, Red Lion. Pa Secretary

A. S. ZIEGLER. Red Lion. Pa Treasurer

^S^M^ftSffl#A

Source of Revenue

Cigars ,

Cigarettes

Snuflf

Tobacco, chewing and smoking

Cigarette papers and tubes

Leaf dealer penalties

December

1938

$ 85G.-k)3.29

37,970,532.61

611.681.74

4.271,(W4.19

110,813.46

277.80

1937

$ 863.280.38

37,834.490.45

611.952 87

3,834,133.98

82,842 17

222.74

Advertising consists in telling who yon are,
where yon are, and what you have to offer.

-^?.^^
^/^

1939

ESTABLISHED

1681

The Tobaccff W^rU

1939 STARTED OFF
WITH TOBACCO GAINS

It is a very great pleasure to note that,
unlike the opening months of 1938. the
first month of this year recorded in-
creases in the withdrawal figures for
cigars, cigarettes, snuff and chewing and
smoking tobacco. As reported in this
issue. Class A cigars were up 7.45 per
cent, and Class D 14.20 per cent., while
total cigar production gained 6.37 per
cent. That meant an increase of nearly
21 million cigars. Cigarettes climbed
6.16 per cent., or more than 804 million.
Snuff's rate of gain was 9.32 per cent., or
nearly 273,000 pounds. Chewing and
smoking tobacco gained only slightly,
361.543 pounds, or 1.55 per cent., but it
was a <ain that helped to start off the
year much more auspiciously than 1938.
It looks like a good year.

HoBAKT B. Han KINS — Editor

Business Manager — B. S. Phillips

SMOKERS FIND:

NEVER JATTCLE
THE NERVES

THE TOBACCO WORLD

Vol. 59

MARCH 1939

No. 3

HCIIIDS to Bayuk lor tho package "To the
Best Dad in the World," which won first prize,
against a field of more than (iOOO contestants,
in the VX)H A II- American Package Competition.
Entirely aside from the acknowledged merits of the
l)ackage in respect of beauty, simplicity and functional
design, it seems like another illustration of the law of
comi)eiisation that the award for a Father's Day pro-
motion etTort should come to Bayuk Cigars, Inc., long
in the forefront of organizations stimulating business
for this annual event, often keeping the identity of
their own product in the background in their campaigns
to boost cigar sales generally.

XAXIMOUR choice of Eric Calamia as presi-
dent of the Retail Tobacco Dealers of America,
Inc., succeeding William Hollingsworth, has
met with the acclaim of the trade everywhere.
He is eminently fitted for the post through his long ex-
])erienee as a retailer, as head of the Ketail To-
bacconists Association of America and of the New York
Ketail Tobacco Trade Council, as secretary of the as-
sociation which he is now chosen to lead, and as an
active figure in all movements in the interest of the
retailer. Wc bespeak for him the wholehearted co-
oi)eration of the tobacco retailers of the country in all
his etTorts for the improvement of their lot.

iK>PAZ in s(»me lights, amber in others, Afr
tually, tbe warm, golden brown of the curly
little t<il)acco eiitls in your cigarette. Our own
inspired translation of the Paris cables:
* Channel launches Tobacco Blonde. Vionnet stresses
tobacco shades.' In davtime and dinner versions that
will give all New York the 'cigarette habit' overnight."
We quote from a Franklin Simon style advertisement.
Just another sign of the times in the reign of Lady
Nicotine. But it needed no decree from Parisian
stylists to give New York (and the rest of the country,
for that nuitter) the cigarette habit overnight. That
habit has been growing since the World War, as the
annual withdrawal figures eloquently attest.

WK were the kind of analysts who look at the
hole instead of the doughnut, we could find
some details to danq)en the enthusiasm that
prompted us to crow on the front cover about
the withdrawal figures for .lanuary. For instance, the
circnnistance that Class A accounted very largely for
the total increase in cigar consumption. Nothing would
ho easier than to compose a lamentation on that theme.
But we are inclined to believe that all cigar manufac-

turers should be cheered bv the news that ^Ioue Cigars
Ai!K Being Smoked. In fact, w^e go farther. We be-
lieve that all cigar manufacturers should be gladdened
every time Moke Tobacco Is Beincj Consumed, no mat-
ter in what form. The only time there is real reason
for disheartenment in this or any other business is
when the total consumption is lessened. If the people
still continue to use tobacco in larger measure, even in
its cheaper forms, there is always the chance for a re-
turn to tobacco in its more expensive forms. That's
what happened in the automobile business. In 1934,
the three lowx\st -priced cars — Chevrolet, Ford and
Plymouth — did 72.4.3 per cent, of the business; in 1938,
they did 58.94 per cent, of the business.

T IS emphasized in the annual report of the
Commissioner of Internal Revenue, just pub-
lished, that collection of tobacco taxes for the
fiscal year 1938, amounting to $568,181,968,
represents the largest annual collection from this
source since the first internal revenue taxes in 1862,
making the fourth consecutive year that these collec-
tions have exceeded all previous annual collections.
The collection shows an increase of $15,927,822, or ap-
proximately 3 |K'r cent, over the collection for 1937.

HE tax on small cigarettes amounted to $493,-
432,960, an increase of $17,405,753, or 3.66 per
cent., over the previous year, and represents
86.8 jM'r cent, of the total tobacco taxes col-
lected during the year. The total collections of taxes
on both cigarette papers and tubes amounted to
$1,182,539, an increase of $66,1()2 over the collections
fr<»m this source during the preceding year. During
the fiscal year, 1911 permits were issued' for the with-
drawal of tobacco products tax free for the use of the
United States. These permits covered 56,790,(X)0
cigarettes and 224,533 pounds of manufactured tobacco.
As is well known in the industry and trade, manufac-
turers are authorized to withdraw from their factories
tobacco products without the payment of tax, for use
as sea stores. These products are delivered directly to
vessels or to bonded tobacco sea stores warehouses for
subsequent delivery to vessels. There are twenty-two
such w'arehouses now in operation. Two hundred cases
involving violations of the laws relating to tobacco
were reiwrted during the fiscal year ended June 30,
1938. Great c|uantities of cigars and cigarettes found
to be in illegal condition, due to bearing revenue stamps
that had been i)reviously used, were seized on the
premises of retail stores. Thirty-two seizures of fac-
tories were made and fifty-two special inventories were
taken, resulting in assessment of approximately
$51,000. Thirty-five cases were reported to the United
States Attorney for appropriate action.

The TtJBACCO WORLD (e»t. IMl) it published by Tobacco World Corporatioo; Hobart B. Uankini, President and Treasurer; B. S. Phillip*, Vice President; John Cleary,
SecreUry. Office, 236 Chestnut Street, Philadelphia, Pa. Issued monthly. Subscriptions, available only to those engaced in the tobacco industry or trade, $1.00 a year,'
IS cents a copy; foreifn, $1.75 a year. Entered as seeondclata nail matter, December 22, 19W, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1S79.

Aromatic Tobacco Stocks in U. S.

T IS iiiidcrstood by the Tolmecu Division, De-
part im'nt of ('oimnoivo, that users of aromatic
t(»l)acTo in the rnited States are in an excellent
position as reiiard^ present stocks of aromatic
tobacco in warehouses and in transit. It is also under-
stood that the laruer American buyers of aromatic
tobacco do not expect to make their purchases of Greek
or Turkish tobacco thiouiih third countries.

Stocks of aromatic toltacco owned and held in
warehouses in the I'nited States l)y dealers and numu-
facturers as of January 1, WMl are shown to be
86,239,000 pounds in the tobacco stocks rejjort of the
United States Department of Auriculture. At the
present rate of consumittion of aromatic tobacco by
the American industiy, these stocks ai'e estimated to
be sufficient to supi)ly the industry's needs for approxi-
mately thirtv-two months. This estinuite does not take
into consideration stocks of aronuitic tobacco held by
American interests in countries of orijjfin, the Amer-
ican-operatetl manipulating ])lants at Trieste, Italy, or
the tobacco in transit, tlie movement of wliich is now
to the United States.

The ar(unatic tobaccos i^rown in countries other
than Turkey imd (Sreece have not been consumed
lari»:elv bv the American cinarette industry. Turkey
and Greece, with large ])roduction, atTord the American
industry an adeipiate supjdy of carefully selected
gratles suitable for American us<'; therefore a buying
statf and manipulating plants were installed in these
countries by each of tlie larger American interests, and
others. Manijtulating plants were also put in opera-
tion at nearby Trieste, Italy, in the Free Port.

A survey of imports of cigarette tobacco into the
United States, eovering a ]>eriod of seventeen years,
and which goes back to 1922. when cigarette tobacco
was first segregated in the United States import
statistics, shows that aggregate imports of cigarette
tobacco amounted to 7 05, 90 1,7 7.') pounds, of which 45.6
per cent., or 321,909,845 jiounds, was imported directly
from Greece; 31.2 jjer cent., or 22(»,255,231 pounds, im-
ported directly from Turkey, an<l 17.84 per cent., or
125,909,806 iKMinds, brought into the United States
through the Free l*ort of Trieste, Italy. It is under-
stood that tol)accos from other countries also ar«
manipulated at Trieste.

During the seventeen-year period, O.W per ^t,
of aggregate imiK)rts of cigarette leaf, or 6,360,462
pounds, was imported from Bulgaria, and 0.07 per
cent, of the total, or 5.31,384 pounds, imported from the
Soviet Union. Of the seventeen-year aggregate, 1.57
per cent., or 11,086,264 iKiunds of cigarette tobacco, was
credited to Germany, and l.tKJ per cent., or 7,455,076
pounds, to Belgium. The rest, amounting to 1.76 per
cent., or 12,393,707 pounds, was credited to various
countries, including Hungary, Cyprus, the Nether-
lands, Portugal, United Kingdom, Canada, Jamaica,
Ceylon, China, Palestine, Iran, Syria, British South
Africa, Egj^pt, Mozambique and Portuguese Africa.

Although classed as cigarette tobacco for customs
and statistical purposes, the aggregate of 12,.393,707
pounds does not fall within the aromatic category, for
it is known in the trade that Syria is supplying Latakia,
Iran and others are supplying tobacco for smoking in
water pipes, and that foreigners residing within the
united States are being furnished in a small measure

with products nuide from tobaccos grown in their home
countries.

Italy for numv years has been producing aromatic
tobacco in (juantitit's now said to be sufficient for home
demands and a surplus foi- export. British colonies
in Africa are ex])orting aiomatic tobacco, and repre-
sentative samples of the tobacco are now in the United
States. A representative of the Iranian Ministry of
Finance is now in the Fnited States with representa-
tive <]uantities of aromatic tobacco for ])ractical experi-
mental puri)oses, and Iran projK)ses to furnish Amer-
ican cigarette manufacturers with an annual volume
of not less than 10,000,000 jmunds.

Although American cigarette manufacturers have
imj)orted aromatic tobacco direct from Bulgaria in
thirteen of the seventeen years under review, the
largest volume, which was 2,066,611 pounds, was im-
ported in 1938, following the importation of 794,768
j)ounds in 1937. Fair (|uantities of aromatic tobacco
were imported from 1922 to 1926, the peak in that
period being 1,296,521 ywunds in 1924.

Only small (juantities, j)erhaps experimental lots
of aromatic tobaccos, were imjjorted direct from the
Soviet Union prior to 1938; however, it is understood
that quantities of Soviet tobacco have been imported in
past years through other than direct shipments, par-
ticularly through the Free Port of Trieste.

American interests seeking aromatic tobacco from
the Soviet Union have encountered competition from
countries in the north of Europe having in force trade
agreements with the Soviet Union. However, 531,384
I>ounds were imported from the Soviet Unif»n in 1938.

PLAN FOR FATHER'S DAY

UK National Father's Day Committee, at 32
Hast Fifty-seventh Street, New York City, has
been swamped with requests by firms using
direct mail, as well as New York newspaper
and niagazine advertising, for the official II. Chandler
<1iristy illustration, which is to be unveiled in March
at the New York \yorkrs Fair as the official P'ather's
Day symbol. The idea of having one design repeated
as often as possible, has appealed to advertising men.
It seems to be uppermost in most minds that a single
illustration done in the masterly fashion of Howard
Chandler ('hristy will bettor emblazon the idea in the
public's mind than many conflicting illustrations.

Howard Chandler Christy-s success, in doing ex-
actly that for the Liberty I^an and Red Cross drives,
as well as in many others of national importance, has
injpressed many advertising executives with the efficmsy
of Mr. Christy's style in getting to the hearts of the
American people simply and sentimentally.

The Conmiittee has arranged to fill all requests for
glossy prints of this painting without dmrge. Appar-
ently this design will appear frequently in retailers* as
well as manufacturers ' advertising to the consumer this
coming spring. It will also be used by many firms and
trade as.^ociations in their house organs.

F'ather's Day falls on June 18th this year.

Fair Trade and Tobacco Distributors

By Joseph Kolodxv

H()M the si)irit in which the State Fair Trade
Laws and the National Enabling Aet were
adopted, legalizing resale price contracts in
forty-three States, one might have been jnsti-
fied in anticipating that the majority of mannt'aetnrers
would sign minimum resale price contracts without hes-
itation.

This, unfortunately, has not proved to be the case
in the tobacco trade. True, any of the principal brands
of cigars, a nund)er of higher grade blends of smoking
tobacco, and a substantial nund)er of ])ipes and smoking
accessories are protected against the loss-leader prac-
tice. Yet, it may be safely estimated that the brands
an<l products which provide the trade with ])erhaps 80
per cent, of their volume, are still without the benefit of
the Fair Trade Acts.

It is anonndous that statutes whose legal theory is
to protect manufacturers' good-will seem to be more
acceptable to distributors than to manufacturers. The
delay of manufacturers is all the more conspicuous be-
cause the trade associations of distributors have been
vitally interested in the new laws and have often sought
aggressively to get contracts issued. Let us reflect upon
the difficulties:

(a) Manufacturer who fixes the retail price of his
product makes it easy for the others to get the advan-
tage of selling their products at lower prices;

(b) So long as few manufacturers engage in the
resale price maintenance, the tendency is to switch the
bargain-hunting consumer to the brands of rival manu-
facturers;

(c) A most conspicuous illustration of the threat
of luivate brands may be denoted in the policy of a
large department store in New York and also large
mail order houses. In fuU-p^e advertisements in the
newspaper, they called the attention of the consumer to
the price increases upon goods whose prices are nuiin-
tained.

(d) ** Advertising and Selling" reported that large
liquor dealers and chain drug stores were increasinit
their sales on private label goods.

(e) While certain manufacturers have attributed
their increased sales to the help of distributors pleased
with their resale contract, however, one must realize
that distributors' sales effort is now WJneentratecl in
support of only a small number of price-maintained
liroducts, and the effectiveness, perhaps, cannot be con-
tinuetl if re<|uired to support a larger number of such
products.

(f) An im|X)rtant reason for the manufacturer's
slowness in esiwusirig resale price contracts is the re-
alization that many of them find it to their own interest
to encourage wmpetition among the distributors of the
products.

(g) Distributors' price competition tends toward
lower retail prices by reducing the distributors' margin
instead of the manufacturer's profit.

(h) If distributors' margins are guaranteed, the
retail price is likely to be on a higher level, and unless
the consumer cheerfully adepts that increased price,

M9reh, tgjQ

the manufacturer may face the alternative of a decrease
in sales volume or a reduction in his unit inice to the
retailer.

(i) Among the arguments which were submitted
in favor of resale price maintenance during its leiiisla-
tive consideration, it is the belief that the consumer
would be v»rotected by the competition of the manufac-
tureis for volume sales. Many manufacturers evidently
fear that this argument is not entirely true.

(j) Many association spokesmen contend that the
manufacturer must be made to realize that he must
conip<»te not only for the consumer's patronaj^e but also
for the retailer's good-will.

(k) They advocate that the retailer should care-
fully scrutinize every manufacturer's contract for the
specific purpose of determining first and foremost
whether it is fair to him.

(1) An additional problem w'hieh is deterring man-
ufacturers from resale ])rice contracts is the inherent
difficulty of lindinic a minimum inice floor for which
they are willing to invoke the sanctions of the law.

(m) Price making in distribution is no simple mat-
ter. Some goods are sold direct to retailers; some
through wholesale channels; sonic through co-opera-
tive organizations, and in many cases by the joint use
of all cbaimels.

(n) Difficulties have already arisen between retail-
ers and wholesalers as td the division of the distrib-
utor's margin.

What must be l)orne in mind above all else is that
no one in Inisiness does anything affecting his sales un-
less it may lead to profit. More mamifacturers would,
if cimvinced that it would best Mive their interests,
establish floor prices for their brands. Statements
have been made by leading producers in our own in-
dustry that they would be glad to see all jobbers and
retailers make a fair and reasonable profit by any le-
gitimate method which will not jeopardize the manu-
facturer or place him at an unfair competitive disad-
vantage.

We must also acknowledge that some manufactur-
ers have had a disappointing experience after enter-
ing into price agreements with wholesalers or retail-
ors. For example: We recall that one prominent firm
gave a luncheon some months ago to a large group
of outstanding tobacconists and at the time announced
minimum retail prices, which allowed a very liberal
margin of profit, on one of its leading products. The
dealers unanimuosly and enthusiastically approved the
nuumfacturer's action and pledged their unqualified
support to the promotion on the product. However,
while he has received excellent support in the case of
many dealers, others became lackadaisical or indiffer-
ent in their attitude toward the jiroduct with result
that the manufacturer is somewhat regretful that he
went to the trouble and expense of making the contract.

It is, therefore, up to all of us who favor any
action which may lead to outlawing the loss-leader
practice or other destructive price cutting practices to
manifest in concrete terms our desire and intention of

(Continued on Page 11)

U. S. Cigars Rise 6.37 Per Cent, in January

Classes A and D Gain, Other Classes Lose;
Cigarettes Increase Over 804 Million;
Little Cigars, Large Cigarettes Down

HAKOMETKR is an instruiiiont used lor fore-
cast inu". Tobat'co i)eoi)le generally are hope-
ful that the issue of the Tobacco Barometer
rejxutinii- January withdrawals for consump-
tion reallv docs forecast tlie trend of business for 1939.
The tigures tor United States withdrawals are plus
for all the main classitications of tobacco ])roducts ex-
cept little cigars and large cigarettes.

Cigars showed a gain of 6.'M \wv cent. ; cigarettes,
6.16 per cent. ; snutT, 9.32 per cent. ; chewing and smok-
ing tobacco, 1..").) per cent. The losses in the two named
classifications were not great in volume, since the de-
crease of (5.77 i)er cent, in little cigars rei)resented only
1,095,400 units, and the tlecline of 6.89 per cent, in large
cigarettes rejiresented only 13,580 units.

As is normally expected these days, the greatest
rise in cigars, in unit volume if not in ])ercentage, was
Class a! The total of 325,108,150 compares with
302.571,865 in Januaiy, 1938, an increase of 22,536,285,
or 7.45 per cent. Losses in both Philippine Islands and
Puerto Rico withdrawals reduced this to 19,944,725, or
6.35 per cent.

Almost double in percentage of gain, but, of course,
nmch less in volume, was Class 1), whose total of
1,381,724 comimres with 1,209,883 last vear, an increase
of 171,841, or 14.20 per cent.

Product January, 1939
Cigars :

Class A —

United States 325. 1U8.150 -f

Philippine Islands ... 8.729,230 —

Puerto Rico 2,340 —

Total 333.839.72U -f-

Class B—

United States 1,897.913 —

Philippine Islands ... 1,917 —

Puerto Rico 7,0tK) -H

Total 1,90(..830 —

Class C —

United States 21.002,(>8n

Philippine Islands . . . 25.544 —

Puerto Rico 5,(KK> —

Total 21,033,230 —

Class D—

United States 1.381.724 -|-

Philippine Islands . . . 6,827 —

Puerto Rico

Total 1,388.551 -f

Class E —

United States l(Ki,856 —

Philippine Islands ... 1,036 —

Puerto Rico

Total 107,892 —

6

Increase or
Quantity

22.530.285

2.532,750

58.810

Decrease
Per Cent.

7.4S
22.49

19,944.725

6.35

319,023
1.443

o.otw

14.39

314,466

14.16

1,447,672

16,222
98,130

6.45

■ • ■ a
• • ■ *

1,562,044

6.91

171.841
19.283

14.20

• • ■ ■

4 « * •

152,558

12.34

18.365
114

14.67

• > ■ *

• • * 4

18.479

14.62

CMass B declined 14.3!) jier cent., (Uass (' 6.45 per
cent., and (Mass K 14.67 per cent. Tht^se losses were
shared by the Philippines and Puerto Pico, with the
exception of Class B from Puerto Hico, which showed
a gain of ()000, which was really a 600 per cent. gain.

The United States total for all classes of

cigars

was 349,497,329, which compares with 328,574,263, an
increase of 20,!»23,0()(), or 6.37 pi»r cent. The Philippines
loss of 2,569.812, and the Pucrt(» Rico loss of 150,960,
reduced the unit gain to 340,073,!)29 and the percentage
gain to 5.35. The giand total was 358,276,223 cigars.

Cigarette withdrawals mounted to the high total of
13,862,907,070. This comi)ares with 13,058,452,906, an
increase of 804,454,164, or 6.16 i)er cent. The Philii)-
pine gain was ()6,560 and the Puerto Kico gain 363,240,
so that the total cigarette ligure was 13,863,448,340.

SnutT withdrawals of 3,197,151 ])ounds compare
with 2,925,0(57 ])ounds last January, a climb of 272,684
pounds, or 9.32 per cent.

In chewing and smoking tobacco, the January,
1939, figure was 23,716,05!>; tlie January, 1938, ligure
was 23,354,516. The ditTerence in favor of the opening
month of this year was 3(51,543 pounds, or 1.55 per
cent.

Statistics covering withdrawals for January, 1939,
compared with January, WSS, are as follows :

Increase or Decrease

Product January, 1939 Quantity Per Cent.

Total .-Ml Classes:

United States 349.497.329 -|- 20.923.000

Phihppine I stand > . . . 8,7o4.554 — 2.5(»9,812

Puerto Rico 14,340 ~ 150,9(jO

Grand Total 358.27o.223 + 18,202,294

Little Cigars:

United States 15,091,613 — 1,095,400

I'hilippine Islands ...

Puerto Rico . .

Total 15.091.013 — 1,095,4(HJ

Cigarettes:

United States 1 3,8<i2.W7,070 -|- 804.454,lo4

Philippine Island.. . . 89.3o<J -(- W).5<jO

Puerto Rico 452,<XM) -|- 363.240

Total 13.803.448,430 + 804,883,964

Large Cigarettes:

United States ... 183,474 — 13.580

Philippine Islands ... — 161

Puerto Rico M),\{Mi + 30,100

Total 213,574 -|- 16,359

Snuff (lbs.):

All United States ... 3,197,751 + 272,iM4

Tobacco (Chewing and

Smoking) lbs. :

United States 23,716.059 + 361.543

Philippine Islands ... 3 + 3

Total 23,716.(^2 + 361,546

0.37
22.67

5.35

6.77

6.77

6.10

6.10

6.89

8.30

9.32

1.55

UCCCTT

ToCALC^ Co.

1.55

The Tobacco IVorld

March, igjg

Class A Cigars Gained in Seven Months

Enough to Put U, S. Production Over Top;

Plus Signs for Cigarettes, Snuff and
Chewing and Smoking Tobacco as Well

j](H)KE: Twoiity-six to twolve in favor of the
iiiinns simis. That is tlio first tliiiii,^ to strike
your I've wlu'ii you ulauci' at \hv report of
withdrawals for the first seven months of the
fiscal year, as supplied in the sui)plenient to the To-
bacco Barometer of the Tohaeco Nferehants Associa-
tion of the United States. It would l)e a dispiriting
sight if you did not have the danuarv report to turn
to for solace.

It really is not as bad as the twentv-six minus and
twelve i)Ius signs would seem to indiciite. As a fact
the**- were uams for tlu. seven-months' pciiod in (Mass
A *n-ars, in cigarettes, in snuff, in chewinii and smoking
tobacco 1(, be sure, the increases were in no instance
ot the kind to write home ahout, rangin- as thev did
Ironi ().01) per cent, for cigarettes to lUi) per cent for
chewing- and smoking tol)acco. The 1.02 p^.r cont in-
crease in C'lass A cigars, at that, was sufficient to record
a net gam in rnite<l States cigar withdrawals of ()->l
per cent.

-c-o'El!^^*' I'liited States cigar consumption was 3,luy,-
1 '' 1 .ir- 7"'Par^*^J ^^ith :il();i2()f),507, or 6,278,481
anead. ( >t the total class accounted for 2,7:^7 707 5(K)
as against 2,(m,imjUo, an increase of 43,(H34,77)5. 'ThJ
o^'h^^^'T «^1^>•T^'^5^' ^"'^1 the l>uerto Rico loss

19ivi oil ' n^S^^ ^^''' "'*^ -^^'" •" ^'^^»'^-^ A down to
iy,iod,J4l), or 0.68 per cent.

Declines in United States withdrawals in the other
classes were as follows: (Mass B, .M,711,r)(;6, or 11.01
per cent.; (Mass (', .M0,608,:]O0, or H.Hl] per cent.; (Mass
J), 2,4(;5,62<), or <).7."3 per cent. ; (Mass K, .■)(M),72J), or 14.r)4
per cent. The only plus signs in all these classes were
represented by Puerto Kico's gain of 3300 in Class D,
and the Philipiune gain of 11,733 in (Mass K.

The result (.f all this was a total of 3,109,587,988
tor I nited States, an increase of 6,378,481, or 0.21 per
cent.; a total of 105,310,028 for Philippine Islands a
decline of 16,()29,28(), or 13.f)4 per cent.; a totarof
1,124,660 for Puerto Kico, a decrease of 8,(J24,315, or
more than 88 per cent., a grand total of 3,216,022,676
a decline of 18,875,120, or 0.58 per cent. '

Little cigars fared worse during the period
dropping from 110,266,129 to 89,795,153, a matter of
10,4/0,9/6, or 18.57 i)er cent.

Cigarettes, on the other hand, fared better. The

o-'-!^f 1 -r^^Ir ^^^*\^ ^'^' 97,675,568,314, as against
9/,o89,lo6,242, ^yhlch was 86,412,072, or 0.09 per cent,
to the good. Cigarettes from the Philippines showed
a big jump, trom 401,570 to 1,534,870, but l>uerto Rico
cigarettes slipped from 3,023,680, a loss of 621 240
Large cigarettes in the United States figures recorded
a loss of 181,034, or 9.62 per cent. » ^curutu

Following are the reported figures for the first
seven months of the two fiscal years, 1938 and 1939.

lit 7 Mot.

Product Fi»cal Yr. 1939
Cigars :

Class A—

United States 2.737.707.500 -j-

Phihppine Islands ... 104.887 545 —

Puerto Rico 672.310 —

Total 2,843^67,355 +

Class B—

United States ... 29,^9,443 — .

Philippine Islands ... ' 67 160 — .

Puerto Rico 62,450 —

Total 30.119.053 —

Class C —

United States 316.133.400 —

Philippine Islands ... 161194

Puerto Rico 386,Vj00 —

Total ', 316.681,194 —

Class D—

United States 22,815,387

Philippine Islands ... 176 716

Puerto Rico x^oq ^

Total 22,995,403 —

Class E—

United States 2,942,258

Philippine Islands ... ' 17'4|t j-

Puerto Rico . .' ^

Total ', 2,959.671 — '

Increaie or Decrease
Quantity Per Cent.

43,664,705

16,226,850

8,284,615

19,153,240

3.711.566
222.183
220,600

4.154.349

30,608,300

(>0,280

122,400

30,790,W0

2.465.629 *
131,706
3.300

2.594,035

500,729
11,733

488,996

1.62
13.40

0.68

11.01

12.12

8J3

MM

9.75

10.14

14.54

14.18

I^oduct

total ,\n Classes:

United States ...
Philippine Islands
Puerto Rico

Grand Total . . .

Little Cigars;

United States . . . .
Philippine Islands
Puerto Rico

lit 7 Mos.
Fiscal Yr. 1939

3,109,587,988 -f

105,310,028 —

1,124,660 — -

Increase or Decrease
Quantity Per Cent.

6,378,481

16,629,286

8,624,315

89,795.153 — 20,470.976
— 7%,6M

Toul

Cigarettes:

United States

Philippine Islands
Puerto Rico

Total

Large Cigarettes:

United States

Philippine Islands
Puerto Rico

Total

Snuff (lbs.):

All United States

Tobacco (Chewing and
Smoking) lbs. :

United State<t . . . .
Philippine Islands

Total

89,795.153

97,675.568,314 -f
1,534.870 4-
^402.440 —

1,700.376 —

I.OOO —

1^.^1 H-

1,887,637

22,136,262 +

21,267,656

86,412,072

1,133,300

621.240

97.679.505.624 + 86.924,132

18I,0M

21

S3,761

127.294

502,018

179,^5,038 + 6,402.913

3 - 8

179,305.041 + 6,402.905

0.21
13.64

3,216,022,676 — 18,875,120 0.58

18.57

• • • •

• • • •

19.15
0.09

• ■ • ■

• * • •

0.09

9.62

40.57

6.32

2.32

3.70

The Tobtuc0 WfU

Get set for bigger and better business with an

ELPRODUCTO CASE lineup

*oa

ANNUAL CONVENTION EXHIBITS
HE N. A. T. D. annual convention-exhibits have
progressively assumed the complexion of a
permanent institution in the industry. To fur-
ther add to the character of permanency which
these annual gatherings merit, it has been deteritiined
to establish a bureau in these offices to be known a.s the
**N. A. T. D. Convention-Exhibit Bureau."

A brief period of two or three months hardly
suffices for the perfection of the multitudinous details
which attend such tremendous gatherings. They repre-
sent, in every respect, the **hub" of the industry. By
creating a permanent staff which will be available for
consultation with anyone eager to participate in these
convention-exhibits, the association will have the mak-
ings of a real industrial exposition.

A cordial invitation is extended to members of the
industry, producers of tobacco products and allied
lines, to confer or (M)mplete arrangements for the most
desirable and successful participation in the industry's
foremost annual event — the only national, articulate
group institution in the industry— the convention-ex-
hibits of the N. A. T. D.

UQOITT A MYERS PROFITS

HE Liggett & Myers Tobacco Co. reports for
1938 net income' of $20,560,884 after interest,
depreciation. Federal income taites, etc., equal
to $6.08 a common share. This compares with
net income of $21,375,560, or $6.34 in 1937. Inventorien
amounted to $141,173,222 on Deceniber 31, compared

March, lyjsg

(,,H.P. Cigar Co.. Inc.
Phila., Pa.

with $133,765,(M)3 on December 31, 1937. Holdings of
United States (iovfrnment bonds and preferred stock
amounted to $8,330,170 at the end of 1938, against $16,-
399,333 a vear earlier. Total current assets were $167,-
456,988, against $167,613,069 on Deceniber 31, 1937, and
current liabilities were $14,293,098, against $16,899,086
on December 31, 1937.

Net sales for 1938 were $237,764,150, against $242,-
448,565 in 1937, a decrease of $4,684,415, or 1.93 per

cent

During 1938, Liggett & Myers made a loan of
$1,(XM),(KK) to assist one of its large suppliers of mate-
rials in financing the construction and equipment of
a plant which is expected to be of mutual benefit, the
company states. The loan is a ten-year interest-bear-
ing collateral loan payable in instalhnents beginning
September, 1940.

LORILLARD NET DOUBLED

UBSTAXTIAL improvement in earnings in
1938 over those of the previous year is revealed
in the annual report of the P. Lorillard Com-
panv and its subsidiaries. The net income
for 1938 was $4,013,299 after depreciation, interest,
Federal income taxes, minority interest and other de-
ductions. It was equivalent to $1.78 a share on the
outstanding common stock after preferred dividend
retiuirements. In 1937 the company earned $2,278,-
1)36, or 85 cents a common share, after deducting a spe-
cial charge of $1,059,280 for flood loss.

Net sales last year amounted to $73,884,080,
against $75,962,586 reported for 1937.

POPULAR LEADERS

By P. Lorillard Co

BEECHNUT

UNION

LEADER

OLD GOLD

Double Mellow

Cigarettes

LILLIAN

2

for
5«

ROCKY
FORD

MURIEL

Senators

5«

VAN

BIBBER

5for 10#

SENSATION
20 for 10«

BETWEEN THE ACTS

15* P^O- often

J

"THE VIRTUOUS VICE

ft

In an entire column recently, John B. Kennedy, eolumnist, author,
radio and newsreel eommentator, calls tobacco "The I'irtuous Vice." Hg
ezen headlines the article with these three words. Mr. Kennedy, a reporter
ior one of the tobacco trade magazines some thirty vears aqo. seewK to
know his tobacco, as the following will clearly shoiv: '

LI) DOC PKASK. X,.w Yr.rk's (nu'-nmn anti-
tcihacco crusadt', was wont to go around pluck-
iiiir ciuars an<l pipes and ciuarcttes from sur-
])risod smokers, and point inir out that tobacco
was a sure road to ruin, that the ciirarottf, especially,
was the shortest line between tire and a fool. Doc Pease
isn't as militant as formerly— althonirh he still hates
and anathematizes tobacco. But tobacco has won the
tilt between those who don't like it and those who do—
because there are more of those who do.

To those who ar^ue that tobacco is a drutr, that it
dulls the senses and slows up muscular and mental ac-
tivity, I have nothin.i? to say, exceptinir that it's a very
good thins: there is some comparatively harmless drnff
that does this. I have a theory that if tobacco had been
in use universally one th(»usand y<*ars before Sir
Walter Raleigh took one of the best Indian habits from
America to Europe— this would, by now, be a nmch bet-
ter \vorld. For ancient irritations and collisions result-
ino: in hatreds from which we still suflfer %vere origi-
nated when man had no mild mental sedative like To-
bacco.

Our two most frolicsome dictators today, Herr
Hitler and Signor Mussolini, don*t touch tobacco and
abhor liquor. Yet, when German beer gardens bulged
with jovial burghers puffing underslung pipes, and
when Italian villages rippled with laughter and music

JO

and brightly bubbling wine — then both (Jerniany and
Italy had more friends than critics.

True, dielators dilTer. The late Mustapha Kemal,
dictator of Turki'y, was a chain smoker with a relish of
wine — and women — so much so that that is why we
refer to him as "the lati'." Jose))h Stalin wears a pipe
that resembles an extension of his handle-bar mustache,
and m strictest pi-ivacy »Ioe likes a spot of vodka, a
liquor that isn't so much of vintage as coltage.

Doubtless there ai'e Turks and l\ussians who would
dispute any claim that Kemal and Stalin were gentle
philanthro])ists in their rigorous domestic rule; but at
least their aggression has so far been limite<l to home
woik. Without tin' mental and iihysical relaxation of
tobacco, who knows what ))ersonal restlessness might
have driven them to i' When Japan had a Premier who
liked his cigars and his >///,/. and n(»ver went without his
drop of hmch, Japan's policy toward China was mild,
even f liendly.

Of course, there's always a point of excess where
>moking, instead of iclievinu: nerves under pressure,
irritates them; that is when the chain smoker becomes
literally chained to smoking. Xobody would be foolish
enough t<» advocate that anybody be foolish enouuh to
overdo anything, even work— or especially work.
Smokinu- shoukl be avoided by the young and made
I'omimlsory for the old, and by younu is meant those
under ten. I started smoking at nine myself; Imt it
would have been better to have waited another ten
years— smoking was at least more sanitary by then be-
cause we could buy our own.

('hami)ioning tobacco, people think, puts vou on the
spot as reconunending bad habits. But who savs using
tobacco is a bad habit f Tobacco temperately used, is a
u<»od habit or at worst an inditTerent one— neither good
nor bad.

Kufus Isaacs, the great P'nglish barrister we knew
better as Lord l^widing, was a law with juries. When
questioning veniremen he usuallv inserted the cpiery
l)o you .snjoke? If the panel-man didn't, he was out.
Whyf Not that non-smokers are cranks, but that they
run graver risk of being cranks than do smokers.

WHOLESALERS GAIN

The dollar volume of sales of tobacco and its prod-
ucts by distributors during the month of December
lihowed a «:ain of 11.1 ],er cent, over the i)receding
month, according to a report from the Bureau of For-
eiirn and Domestic ( ommerce of the United States De-
partment of Commerce. The report is based on 185
wholesalers who furnished statistical information.

Sales during December, 1938, showed an increase
of IS per cent, over the same month of the preceding
year, according to the Bureau. Total sales of the re-
portimr firms for December aggregated $13,681,000.

Of the sixty four firnjs that reported on inventories
tor thennmth, the Bureau states that statistics showed
a decline of KJ.T from Xovember, but that the end-of-
the-mr.nth inventories were 2.7 per cent, higher than
December, 1937.

The value (.f the stocks on hand at the end of De-
cHnber, 1938, by the reporting firms amounted to
f*.,.Jl.i,(M)(). The accounts receivable for 107 firms that
reported amounted to |G,832,(KK) as of December 1. 1938
an increase of 2.7 per oent over December 1, 1937.* *

Tht Tobacco World

FAIR TRADE AND TOBACCO DISTRIBUTORS

{('oniiiiiird from Pdffc >)

giving ade(iuate support to the promotion of price
protected products.

Until we do this, we will not be able to realize
the full benefit or advantages of the fair trade acts.

In dwelling on this suliject, let us briefiy refiect
on our own experiences with fair trade. As you know,
there are distinct lines of demarcation between dis-
tributors.

rpj,^.,.<. is— on the one hand— the established, serv-
ice distributor who is adeqiiatt'ly equipped to render a
service commensurate with the nM|uirements of a man-
ufacturer who desires to place on the market and pro-
mote a product of intrinsic value. Firms of this
character maintain eflicient sales organizations; they
tlmroughlv canvass and in many markets actually
honeycoujb the territory under tli<'ir direct jurisdic-
tion.' Tlu'v employ a delivery system, extend credit
and generallv remler a service consistent with legiti-
mate'^business conduct. They enjoy the distribution of
certain valuable franchises on an exclusive basis.

On the other han<l, Jiere is a class of distributors
who merelv jmrsue a jtolicy of -upplying the customer
with whatever products he orders; selling merchandise
in bulk at virtually cost ; calling only on the more prom-
inent and larger retaiU'is, and carrying any and every
product which <'iijoys a consumer's market.

What bearing would that have on the fair trade
activity* A significant bearing.

The to liner class actively participated in move-
ments which espoused fair trade legislation. They
have been and are advocating and urging manufactur-
ers to register their brands under the fair trade acts.
Thev have engaged in an educational program point-
ing out to the retailer the tV-asibility and urgency of
supporting registered, pric<'-maintained products.
Since they enjoy the exclusive distribution ]>rivilege8
of certain valuable brands, they were cognizant of the
fact that a stabilized market on their pnxlucts will
ultimately redouiul to the benefit of their manufactur-
ers, their customers, and themselves,

Distriluitors in the second category have exhibited
an attitude of indifference toward fair tracU', complete
luke-warmness, and — more than that — in many in-
stances, complete ignorance of th«'se historic develop-
ments. In contacting the retailers, they either have
taken a pessimistic attitude toward the ultimate suc-
cess of the movement (»r else demonstrated to the re-
tailer that adherence to price will merely tend to di-
vert the hitter's business to a uom^titor on tl^ next
bl(M*k or the next street.

We have thus witnessed two confiicting forces,
neither of which is in a jiosition to assume ascendency
in the i»resent system of distribution. We all realize
that the rapidly selling items of low-unit price is a
great incentive for new business ventures. And after
all, what other business can l)e engaged in with such
ease and with such an unfiuctuating inventory as pop-
ular braiuls of cigarettes and tobaccosf

If, therefore, our industry lags in the caravan of
fair trade, do not attribute it to lack of enthusiasm or
appreciation «)f its importance. Ascribe it largely to
an uneven method of distribution which, unfortunately,
does not lend itself, as yet, to uniformity of purpose
and objective.

March, igjg

Get Both
With . . .

KING_ «7^>r^
EDWARD W(^

VyORLD'S larscsl sciiins cigar .... fr«3rant, mild and
always factory fret h .... a trcmcr)dous profit maker for
dealers and jobbers.

Keep King Edward on top of the counter and increase
your sales. Have full stocks on hand and you II miss no
profits. To increase unit sales push the handy Ten-Pack
with 10 big, fresh, fragrant King Edwards for a quarter.

JNO. H. SWISHER & SON. INC.

Cigar Manufacturers . . . JACKSONVILLE, FLORIDA

. Now is the rime

when all good

tobacco retailers

wiU prepare for

FATHER'S DAY

JUNE 18

//

NOW...FOUR EHRA COUPONS

in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamson Tobacco Corporation

UNION
MADK

American Tobacco Co. Report

MKinCAX Tobacco Co. in 10.1H had net profit
iM|iial to .*t^4.s;) a coninion sliarc eoni|)an'(l witli
$.').().*> a sliaif caiiuMl in 1!K>7. Total sales were
.f2r):>,0!M;,221 i-ompared with $242,r)44,r)14 in
19.S7, an inereaso (»1" $10,451, Till. Operatinii: expenses
were $221,741Mn(l a-ainst H^211,li:5.:5!)2 in VXM, an in-
crease of $l(),()o(),.S18, so that the oju'ratinu: jjroiit was
down sliirhtly in the year desjnte the salt's ijfain.

A >teadv increase in sales occurred in 1938, Georufe
W. Hill, i)resident, says in a letter to stoekholders.
Since tlu' trend (»f sales was upward throu<j:hout the
year, it is likely that 1!).')J> will reeeivc part of the benefit
of advert isiiiii: a]>pr(»]niations in l!>.'i8.

American Tobacco inventories at the end of 1938
were $144,:)97,118, eoinpared with $137,422,279 at the
end of 1937, an increase of $7,109,839. However, a
chaiiice in the coini>any's method of earryinu: inven-
tories indieates that the increase in inventories was
actually $1,2(K),()65 "freater than the sum named.

"Prior to 1938, the company fnllr>\ved the ])rac-
tice established in 1!H)3 of ineludini- in its consolidated
inventory valuations interest on capital invested in
tobacco and in certain fixed assets used in leaf tobacco
processing," the report says. "Such amounts included
in the December 31, 1937 consolidated inventories were
determined to have been $l,2n(),()()r). I^eginning Jan-
uary 1, 1938, the comjmny ehang<'d its policy so as to
eliminate such elements from the consolidated inven-
tories. The consolidated statement of income for the
year 1938 is based upon inventories computed at the
beginning: and end of the year on a consistent basis,
and the adjustment was charged to surplus as at De-
cemter 31, 1937.

"We had at the close of the year the finest stock
of leaf tobacco in the companv's historv, valued at
more than $123,9(}< ),(><♦<». This stock of great tobaccos,
grown under improved methods — cream of the better
than-ever crops which have been produced in the last
few^ years — is, in my opinion, something of real inter-
est to our stockholders. Cigarettes and smoking to-
bacco are made from tobacco — that's where this busi-
ness starts. To have our leaf stock in tlie exceedingly
favorable jiosition in wiiich it is today, assures, under
proper jjrocessing, a quality of |)ro*duct that should
reflect itself in sales in the years ahead.*'

Dividend payments by the company during the
year exceeded earnings, so that expansion of inven-
tories was accompanied by a rise in bank loans. On
December 31, 1938, these stood at $28,739,0(K) against
!i^21,697,0(X) at the end of 1937, an increase of $7,042,0W.

The company's 1938 net income of $25,435,643
after depreciation, interest, federal income taxes, etc.,
is eepial after (i j>er cent, preferred dividends, to $4.89
a share (par $25) on 4,55(5,177 shares of combined com-
mon and common B stocks excluding treasurv shares.

This compares with $2(),197,4i)3 in 1937, after
$289,!n() Hood loss, e<iual to $5.03 a share on combined
4,575,044 shares of common and Class W common
stocks.

Current assets as of December 31, 1938, including
$1(5,396,944 cash, amounted to $175,191,2(;(; and current
liabilities, (including $28,739,000 bank notes payable),
were $40,022,243. Corresponding items in the 1937 re-
port were cash, $21,3()5,947, current assets, $173,454,-
850, and current liabilities (including $21,()97,(M)0 notes
payable) $32,388,7()().

AMERICAN CIGARETTE & CIGAR CO.

IJeport of American Cigarette & Cigar Co. (con-
trolled by American Tobacco Co.) for year ended De-
cember 31, 19.38, certifietl by inde|H»ndent auditors,
shows net income of $1,.328,134 after amortization, in-
terest, Federal income taxes and other deductions,
ecjual after diviilends on (» per cent. pr(»ferred stock, to
$6.52 a sliare (par $70) on 200,(K)0 shares of common
stock.

This compares with net income of $1,383,072 or
^.79 a share on common in 1937.

Current assets as of December 31, 1938, including
$861,9J>9 cash and marketable securities, amounted to
$1,691,375 and current liabilities were $1,027,623 com-
pared with cash and marketable securities of $1,230,938,
<urrent a>-ets of $1,958,076 and current liabilities of
^73»8iK» at end of preceding year.

HOWARD AND SHELTON SIGN

Tom Howard and O^rge Shelton, noted zanies,
become the stars of the ** Model MinstreC* program
heard over CBS Mondays at 8:30 P. M., E. S. T., with
the broadcast of February 27th. They guest-starred
while Pick and Pat, who leave the program after being
heard on it for five years, were vacationing. Rumor
has Howard and Shelton signing for thia series one
day before they were offered the closing comedy sjKjt
on the Sunday night Don Amcche-Charlie McCarthy
hour from HoUvwood. The program is sponsored by
the U. S. Tobacco (^o.

Tk€ Tobacco World

MODEL TOBACCO

PRESENTS THAT POPULAR COMEDY TEAM
OF RADIO STAGE AND SCREEN

HOWARD & SHELTON

IN THE MODEL MINSTRELS" _^

'^

-v..

>"

w-

L

\

EVERY MONDAY NIGHT

COAST TO COAST

COLUMIIA IROADCASTINO SYSTEM

See your newspaper for local time.

Y

;:-.-'^:

PHILIP MORRIS REPORTS

ITII sales vohinie on its principal product, the
Pbilii> Morris eifrarette, continuing:: to run iiiore
than 10 per cent, ahead of the like months of
the previous year, Philip Morris & Company
will set a new record for earninp:s in the current fiscal
year to end March 31st. At this time it is virtually
assured that net income will run well in excess of
$6,000,000.

This would compare with $5,6^3,221 in the previous
fiscal vear, $3,573,617 in the year ended March 31, 193<,
and only $2,408,105 in the year ended March 31, li»36.

AVliat the earnings ])er common share will amount
to will depend U|)on the extent to which the company's
preferred stock is converted into common stock during?
the final month of the fiscal year, states the H'r/// Street
Journal. Of an original issue of 77,873 shares of the
5 iier cent. ])ref erred stock, 11,050 shares had been con-
verted into common at the start of 193<), and the issue
was further reduced to 59,855 shares at the end of B^eb-
ruary.

Declaration of an extra dividend of two dollars, in
addition to the regular quarterly dividend of seventy-
flve cents on the conunon stock, would mean that pre-
ferrwi stockholders converting into one and one-half
common shares for each preferred share would receive
$4.13. This may encourage conversion before March
10th, the stock of record date for the dividend.

Through the sale of the preferred stock last year,
netting the company roughly $7,4<MMMH), bank loans in-
curred in building up the tobacco inventory were extin-
guished. The new buying season, however, has resulted
in the renewal of bank loans for a fairly heavy sum.
With the completion of the tobacco buying season, how-
ever, the heavy cash outgo stops, and income from sales
will permit the reduction of bank loans.

During the current fiscal year, Philip Morris paid
a total of $5 a share on the common stock in addition
to the regular dividends on the preferred stock, so there
will be a surplus available from the year*s earnings to
improve the company's position.

With Philip Morris cigarette sales amounting to
more than 85 per cent, of the company's business, the
trend of this brand determines the company's success.
However, Bond Street and Revelation smoking tobacco
have been increasing in volume, although the Marlboro
cigarette eastKl off slightly in volume during the past
year.

U^ch, 19S9

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter - for the Eye
It's Lighter - for Shipping
It's Better - for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. J.

3NI

BsiablitlMd 1886

<<

BEST OF THE BEST"

MMirfactMr^ kt

A. SANTAELLA & CO.

Offica, 1181 BroMlw«7. New York City

FACTORIES: Tampa and Kwp W^at. Horida

AUTOKR AFT

CIGAR BOXES

Bohe Naturt
Cedar Chettt

Novelty
Wrapped

Are Outstanding In
Ouality-De sign-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
(*hic«go. III.
Detroit, Mich.

HelUfB. Ps.

Hanover, Pa.

Philadelphia, Pa.

\^Tieelinf. W. Va.

'3

'-'a

'^ecf^'^f?^

Tobacco Merchants' Association
Registration Bureau, ^tV'^YokTcm

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A— An allowance of $2 will be made to members of the Tobacco Mer-

thants' Association on each registration.

Note B — li a report on a search of a title necessitates the reporting of more
than ten (10) titles, but less than twenty-one (21), an additional charge of One
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars
($2.00) will be made and so an additional charge of One Dollar ($1.00) will ba
made for every ten (10) additional titles necessarily reported.

NEW REGISTRATION

TRYLON: — 46,718. For cigars. Registered by Brockway Bros.,
Xcw York, X. V., on January 7, 1939.

TRANSFERRED REGISTRATION

FRANCISCO GOYA:— 22.895 (U. S. Tobacco Journal), and 267
(United States Patent Office). For cigars, cigarettes and cheroots.
Registered July 2S, 1900, and .<ii)teniber 18, 1900, respectively, by
Schmidt & Co.. New York, X. Y. Through mesne transfers ac-
quired by Randall-Wagner Co., Inc., Cliicago, 111., and re-trans-
ferred to Harry E. Landfield, Chicago, HI., on February 4, 1939.

^Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based on

manufacturers' returns of production)

Month of November

Increase or Decrease
Product 1938 Quantity Per Cent.

Plug 4.2r.o,312 — 193.794 4.35

Twist 414.774 — 78.163 15.8()

Fine-cut Chewing 362.835 — 118.797 24.67

.Scrap Chewing 4.563.403 -f- 1,339.858 41.56

Smoking 18.503,408 -f 2,647,252 16.70

Total 28.110.732 + 3.596,356 14.67

Eleven Months Ending November 30th

Increase or Decrease

Product 1938 Quantity Per Cent.

Plug 50.621.222 — .^920.513 7.19

Twist 4.815.590 — 1.464.775 23.32

Fine-cut Chewing 4,286.177 — 800.2.^7 15.73

Scrap Chewing 40.338.725 — 1.443.287 3.45

Smoking 183.350.072 -f 10.052.275 5.80

Total 283,411.786 + 2.423.4r.3 0.86

*The production figure?; are in pound*, and are subject to revision
until published in the annual report of the Commissioner of Internal
Revenue.

Internal Revenue Collections for January

January
Source of Revenue 1939 1938

Cigars ? 806.9(W 66 $ 773.9.38 90

Cigarettes 41.590.40209 39.176.R8607

SnuflF 575..595.15 .«;26..528 67

Tobacco, chewing and smoking 4,269.028 85 4.203.857.54

Cigarette papers and tubes 117.175 31 86.204.04

Leaf dealer penalties 75.70 428.77

U. S. TOBACCO CO. PROFITS

The United States Tobacco Co. ro|)orts for the
year ended December 31, net profit of jfJ3,358,13r) after
depreciation and Federal income taxes, etpial to $1.74
a share on 1,831,400 no-par common shares. This com-
pared with net profit of .$3,4r»2,r)87, or $1.80 a share
in the previous year.

Preferred and common stocks were split four for
one during 1938. it was |)ointed out. Current assets
as of December 31, including $10,907,709 cash and mar-
ketable securities, totaled ,$23,064,491, against $10,763,-
403 and $23,023,358, respectively, in 1937. Current lia-

'4

CIGAR BOXES

TtL AlccMalB 4-MB

■■tabiiik«« an

tflft^^PSCQ

OUR HIGH-GRADE NON- EVAPORATING

CIGAR FLAVORS

Make tobacco m^Uow and amooth In charactas^
and Impart a most palatable flavor

FUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
BKTUN. ABOHATIZEB. BOX FLAVORS. PASTE SWEETENEIS

FRIES 6k BRO., B2 Reade Street. New York

TOBACCO TRADE ORGANIZATIONS

TOBACCO MEROIANTS A5vSOCIA.TION .^l^fi/^N,
OF UNITED STATES ^"^^M^

JESSE A. BLOTH. Wheeling. W. V« President

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

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

GEORGE H ni'MMELL. New York. N. Y Vice President

S. CLAY WILLIAMS. WinstrnSalcm. N. C Vice-President

Tl'LirS LICHTENSTEIN. New York. N. Y Vice President

ASA LEMLEIN. New York. N. Y Treasurer

CHARLES Dl'SHKIND. New York. N". Y Counsel and Managing Director

Headquarters. 341 Madison A%'e., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

ALAN C. DAVIS. Baltimore. Md President

EDMl'ND C. DEARSTYNE. Albany. N. Y Vice President

TOSEPH KOLODN^'. 2nn Fifth Ave.. New York. N. Y Secretary

j. RENZ EDWARDS. Kan«s City. Kan Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LASCHOW. W2 East Fifteenth St.. Brooklyn. N. Y President

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

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

TOBACCO SALESMEN'S ASSOCIATION OF
AMERICA, INC.

HARRY A. ABRAMS President

LEO RIEDERS. .«» Broadway, New York. N. Y Secretary

JACK EDELSTEIN Treasurer

RETAIL TOBACCO DEALERS OF AMERICA. INC

WILLIAM A HOLLINGSWORTH. 2.13 Broadway. New York. N. Y President

LOriS KLEIN First Vice-President

ERIC CALAMIA Secretary

ARTHUR S. MEYER Treasurer

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

ALVARO M. GARCIA President

THOMAS C, BRFEN Treasurer

SAMUEL BLUMBERG General Counsel

Esecutive Committee— Alva ro M. Garcia (Ex -officio). Thomat C. Breen, Harley W
Jefferson. D. Emil Klein. Walter E. Popper, Harry S. RothMhIld, and Arthur
A. Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

BHI'CE G NEBINGER. Red Lion, Pa President

C. M. EHEHALT. Red Lion. Pa SecreUry

A. S. ZIEGLER, Red Lion. Pa. Treasurer

bilities were $1,342,609, compared with $1,287,417. In-
ventories a^grepated $11,213,037, against $11,189,302.

According to the report higher costs in such lines
as taxes, leaf tobacco, other raw materials, supplies
and labor, resulted in lower earnings for the company
in the last reporting period. Last year*8 decline, the
report continued, was the second successive drop in
net and carried earnings down to the lowest point since
1931, despite reports that sales in 1938 were greater
than in 1937.

The value of marketable securities held by the
company rose nearly $50(J,(KK) during the year to
$5,498,059, on the basi.s of lower ^st or market, and
the increase was credited to the general reserve.

Th* Tobacco WoHd

ESTABLISHED
1881

'/^

1939

GAINS MARK SECOND
MONTH OF THE YEAR

For the second successive month, it is
a source of gratification to report in-
creases in tobacco production in the four
major divisions of the industry-cigars,
cigarettes, snuff, chewing and smoking
tobacco. In February, 1939, with-
drawals of cigars showed an increase of
22,345,670. or 6.59 per cent.; cigarettes,
289.723,973. or 2.52 per cent.; snuff.
141,053 pounds, or 4.97 per cent.; chew-
ing and smoking tobacco, 206,311
pounds, or 0.93 per cent. The gains in
cigars were in Class A, 23,368,040. or
7 59 per cent.; Class 0,275.433, or 15.45

per cent.; Class E, 20,599, or 12.04 per
cent. In the first two months of the
year, there was thus an excess over the
corresponding 1938 period of more than
40 million cigars. The year continues to
look very good.

lIoBAKT B. Uahkiss— Editor

Business Manager— B. S. Phillips

^<

fu/,

TIIi:s|;cinT..tClKst,rfi,M\

""''•«*' '•«'tt»T tastf. ..///,. rcasnu
uhif tln'if iiivi' ifnii innn- sfnnh-
in^r plcnsiirc ... is tin- iiM|,t

'•••lllhifiatinll nt till- W.ll.l s h,.st

fllfaffttf toll

i.ri.s r.)||,.(| in pHi

ciiraivtt,- pap.., . . , tlir |,|,.„,1
that can t Ik- ((ipitMl,

I

TlltV SATISFY

THE TOBACCO WORLD

" No. 4

APRIL 1939

.1'

\TllKirS DAY ou^^ht to bo a m\\e\\ 1)1^:^^01
\„(.(M-s this vcar because of the eaiupai^nHU^
tliat l.as been imt behind it so far in advance.
Howanl Chandler duisty's paint.n-, which is
th,. offieial end)UMU of the cek-bration was unve UhI on
A ? ' Mt the \cw York World's Fair -rounds, anc
r rov r wiLu! .un^uncecl that June ISth has been so
M i le is F hcr's Dav at the fair. The pamt.n^^ wdt
nn ear in ^ ail ston^ all over the coindry iron. June
lit t IHth Anv retail tobacconist who does no get
\t uu-e or the'extra business which wdl ^-ne troin
t ds lOniotion will have only hnnselt to blame. It
will be only because he has not co-operated m the cam-
paign.

ROMISKS, or threats, of an innninent investi-
<.ation of the tobacco industry are getting inte
?he news columns. This would be all right
assuming then- is anything to investigate if
anything should come cd" it after tin; noise o the
S^^ as the newsmen like to describe such things
in* t lei.' headlines, has dic.l down. Too ottci, how-
ever all that happens is the arraignment ol an entire
indu'strv, basc-d on nothing more substantial than, to
use the'old Latin phrase, -verba et praterea nihil —
words and nothing else but.

HF combined business <.f six major cigarette
n.anufacturers in Vm totaled $<K5!MMHMMHI it
is disclosed in a survey conducted by the
AVorks Pro^m-ss A(hninistrati<m and compiled
from data on file with the Securities ami Fxchange
(Vimmission. Included were the American Tobacco
(Vm.paiiv, the Axton-Fisher Tobacc<» ( on.paiiy he
Liggett and Mvers Tobacco Company he 1 . Loullacl
Cotnpanv, Philip Morris & Company, I^tcL Inc,, and the
R J uJvnolds Tobacco (Company. The Ainencmi
Tobacco Company had the largest asset^ ^^^ ^
four years c(»vered by the survey, exceeding $-<4,tMK),-
WO in 1937. Liggett and Mvern wtu. second tVmt year
whh $18.3,(MK),(KK) and R. J. Reynold, thurd with ^18U,
OCK),000.

IF are <till of the IwUef that a besetting sm,
which «»ught to be eradicated from the tobacco
industrv bv a major operation, is the tendency
to discount good news, instead of making the
mOHt of it. There are too many in the business who
Hhould Ik. classed as lude-hunters, rather than dough
nut-diHCOvererH, men with an <»bsession ^t pt'^^>"»^'"^
Thev don't see anything to crow about in the fact that
substantial gains were regiHtered in tobacco withdraw^
als in January and February this year, as compared

with last vear. All tliey can see m the fip^'^'^, «^ ^
fact that th. two months won" not as f >^>^\^^%%^^^-
responding two months of the year be ore lasi. ihese
(.alamitv-howlinu babies can learn a lesson from the
,„,,,„;,,■,,. people. P>oy, when the automakers see even
a sliuht increase in business, they dmi't begin to look

an>nnd for some flaw. They *l<>":i/''^^''^*VT\'tTh;
thin..' to dise<mnt the good news. They yell ab mt the
improvement. It happens that, in the automobile busi-
n.l as in tin' tobacc. bnsine>s, the hrst two months
X\n. vear were better than the tirst two months last
v,.ar"and not as good as the year betore last. But
Vou are not hearing anything about IJK'y from the auto^
Mobile men. Mavbe that policy of publicizing the good
whenever thev can find it, and (h)ing so without any
<,nalilications; is partly responsible for the amazing
ruwth of that industry.

gi

IIFHK is no evi<lence that the use of tobaccr
impairs the memory, according to Dr. John B.
Moii^am, professor <d" psychology at North-
western Fniversitv. "It is seldom, of course,"
he said, "that this subject is approached without preju
die,, of one kind <»r another, but I do not think it ever
will be found that smoking has a harmful etTect on the
inemorv." Studies of memory deterioration have
nhown'that recent recollections are the hrst to disap-
pear "We have found," he >aid, "that many elderly
persims can relate accurately experiences of their
voiith but f(»ri,n.t what was tr>hl them an hour ago. ihe
>peeuiative view (d' this i^ that a child has the great-
,.>t plasticitv, ami that as a person grows older he has
less plastici'ty, and impressions are, therefore, not so
deep. Tobacco has nothing to do with this."

IFLICITATIOXS to the two new directors of
the General Ciunir (^ompany— I. Benedict
Wolfner and 11. V. Schick. Their election was
in line with the eompany's policy of rewarding
lomr, fjiithful, competent service. Mr. Wolfner has
never worked anvwhere else. Starting as tobacco held
hand he worked himself up through the leaf depart-
ment'to the i)ost, which he has held for a number of
vears of yice-president, assistant secretary and direc-
tor of the company's (^uban subsidiary, General ( igar
Comr.anv of (Hiba*. Mr. Schick has been with the com-
nanv a quarter of a century, his asswimtion dating back
to l*ni4 at the time of the merger of Theobald and Op-
neniieimer with United Cigar Manufacturers Companv,
predecessor corporation of General. He had been with
he former company eleven years. Made secretary of
General in 1918, he has held that post ^^er since. He
also served as assistant treasurer from lOlo to V366,
and was a director from 1930 to 1933.

B. S. Phillips. Vice President; John Clcary,

::— sr^'irr^;-SH¥BS=ES^^^^

IS centi a copy; loreign, $l.?S a year.

Retailers Plan Annual Convention

I.AXS for till' si'V(>iitli annual iiu'ctinu antl con-
vention of tlu> lit'tail Tobacco Dealers of
Anjeriea, Inc., are well untler way. The officers
and directors of the national association look
forward to one of the most ambitious programs for
tiade betterment yvl to be pi'csented to members for
consideration and action. Nothing will be left undone
to make the forthcominu uatherinu" a real protitable
ex])erience foi- all branches of the tobacco industry.
AVhat with the added attraction of tin' Xew York
World's Fair in full swinu, at the time of our conven-
tion, the laruest anil most ri'i»resentative uathering in
the history of the association is expected.

An interesting entertainment piouiani will be
available to the ladies — to include liuest luncheon,
siulitseeinii trip, sail up the Hudson and around Xew
York harbor and a visit to the World's P'air.

Following is a biief outline of some of the plans
for the 1J>.*>I* convention:

Theme: The convention and fair are dedicated to
streamlininu the merchandisinu: practices of the to-
bacco retaileis — developinu a prouram for irreater and
more etTective «iroup activity — advocatinu approach to
trade problems on a plane clearly focussed throuu^h
the eves of all comiMUient elements of the industrv —
seeking mutual benefits foi- pioduceis, wholesalers,
salesmen and retailers.

Dates: June 1st, I'd, .'?d. The seventh annual con-
vention and tobacco fair will convene on the evening
of June 1st (industry get-together) and will continue

through June lM (business sessions and traile forum)
and June 'M (concluding business sessions and seventh
annual banipiet and tobacco celebration).

Place: Hotel Fennsylvania in Xew York, the head-
quarters of K. T. D. A.'s seventh annual convention
and tobacco fair.

Attendance: The country's outstanding retailers
of tobacco and allied products, as well as the leaders
from all brjinches in the industry, will be in attendance
at the convention.

Trade discussion: The business sessions of the
convention will determine the policy of the association
for the ensuing year on its numerous activities. Among
the subjects to b«' discussed are (loveinment relations,
fair trade legislation, taxation, marketing research,
trade statistical and legal service, public relations and
tiade promotion.

Exhibits: I*roducers of all tobacco i)rodliets and
allied lines sold to consumers through retailers are in-
vited to exhibit their merchandise at the to))acco fair.
The **Fair" motif, chosen to dramative the |)resenta-
tions of the jiroducts exhibited, will ])i'ovide a timely,
interesting background for the convention.

Publication: Fourth edition of the Tobacco Re-
tailer's Ahnanac to contain impoitant trade articles
and reviews. The national association's annual organ
is published in conjunction with its convention and is
distributed to thousands of tolmcconists throughout the
country and to hundreds of the nation's leading public
and universitv librario.

Mechanization and the 5-Cent Cigar

Bv Bonis Stehx, Bureau of I.al)or Statistics

FSS than twenty years au«) cigar making was
classified anionu^ the most highly skilled occu-
pations in tile Inited States. It was i)re-
dominantlv a man's job renuirinu; lonir vears
of apiirenticeshiji and training before a worker could
qualify as a journeyman in the industry. The manu-
facturing process reiiuired a tew simjile tools and very
little investment. Nlost of the establishments in the
industry were very small and produceil ciuars largely
for local consumption.

Tcnlay, as a result of the invention of the long-
filler machine in 1!)17 and the almost simultaneous de-
velopment of the shiu't -filler machine, the cigar nianu-
facturiiiLT industrv has been almost completelv revolu-
tionized. A small quantity of cigars is still jHoduced
in nianv establishments bv the liand method. These
are often the high-priced cigars, freijuently nuide to
**8peeial order." But the ino.st important units in the
industry are now large factories mechanized in every
possible detail. They represent large investments and
are run on a mass production basis. The output of
each factory is huge and is distrilmted throughout the
country. Most workers in these factories are women,
with relativelv little or no skill.

The actual makinu of a cigar is bv far the most
important operation in the cigar manufacturing indus-
try and provides eniployinent to the bulk of the

workeis. In an av«rau«' hand plant cigar making ac
counts for more than thiee-fourths of tlie workers em-
ployed, while in the mechanized plants it acciuints for
approximately one-half to two-thirds of all the workers
emj»l(»yed in the plant.

Cigar making consists of three distinct operations
involving the use nf three different types of tobacco.
The body of the cigar, called the "filler," is forin<^
either of complete loose leaves of filler leaf tobacco
to form a long filler ciuar or of cuttings antl scraps of
filler leaf tobacco tt» form a short-filler cigar. The
next step is to l»in«l the tiller l>y a strip of tobacco cut
from a simple leaf of binder tobacco selected for its
smoothness and elasticity. Aft«r the binder has been
applied, the "filler" becomes a "bunch." The last
step is to roll the buncli into the "wrapper" luade of
a single leaf of wrafiper tobacco which imparts to the
cigar col(»r and smoothness.

Fnder the oldest >ystem, often referred to as the
"out and out" hand method, one skilled worker, with
the aid of a curved knife and a boanl, prt»duced the
entire cigar by first forming the filler and then apply-
ing the binder and the wrapper. Since then a nund)er
of hand devices have been developed to aid and dis-
patch the work of the hand operator.

{Continued on page 13 f

The Tobacco World

"Advertising Is Selling" Newman

Bayuk President Discusses Fundamentals for Printers' Ink

Bv Ki.DiaixiK 1'kteiuson

HEX I asked A. Jos. Xewman, president of
Bayuk Cigars, Inc., if, from his many years
of intimate association with tobacco advertis
ing, he would contribute some observations to
the current series of articles that Prin(( r's Ink is run-
ning as a review of ailvertising fundamentals, he re-
latcHl an incident that serves as an effective introduc-
tion to his conception of how advertising works.

His conception is hereby recommended as worthy
of the consideration of all in this business who, from
time to time feel the need of looking with a fresh
.rlance at advertising as a whole. The recommendation
fs based, first, on the fact that this attitude toward ad-
vertising has guided the progress of Phillies, a o-ceiit
cigar, to its current position where Bayuk can say in
advertising: "More men smok<' Phillies than any other
cigar in America"; and, secondly, because Mr. Xew-
man finds a certain dissatisfaction with such terms as
"advertising" and "distribution," which makes him
redefine them in a simple and thoroughly stimulating
fashion.

Here is the storv Mr. Xewman told: Some years
a«r<», visiting a Middle-Western city to help the local
sale's manager establish a certain cigar, he found the
sales manager an.xious to run some advertising in order
to obtain widespread distribution for it among cigar
stores. The appearance of this advertising, the sales
manager reasoned, would persuade dealers to stock it.
"And then, what do we dof" asked Mr. Xewman.
"Why," replied the sales manager, "then we run some
more advertising to get the customers into the stores
to buy the cigar."

"If 1 understood you correctly," said Mr. New-
man to the sales manager, "you want advertising both
to stock the dealer and bring in the customers— in
which case, 1 can see no function left to be performed
by your salesmen. Do you mean we can dispense with
them!"

Of TOOrBO, the sales manager meant no such thing.
And the reason for telling the story is to emphasize
one fundamental laid down by Mr. Xewman: The funi-
Hon of mh't riimng is not primarily to g>t a itroduH
into a store, hut to grt it out.

"Selling, advertising and merchandising all go
hand in hand," he went on to explain. "They are all
parts of the operation of a business that takes place
after a pnuluct has been made and the work begins of
getting the prcxluct used by consumers. In the story
1 have just related, we turned the job of stocking deal-
ers over to the sales statT which, with a quality cigar,
priced invitingly, was given the assignment of per-
.suading doalewW force id' salesmanship that the cigar
deservwl a place in their stores."

At this |»oint Mr. Xewman maile another funda-
mental observation that de-erv» s some amplification
because he returned to it repeatedly in the course of
the interview.

'*Adv(rtising," he said, "i.v not a miracle worker.
I Udieve that one great mistake that has Iwen made
in too many instances is that the power of advertising
has been oversold by media and by advertising agen-

AprU. /9.W

cies. Many manufacturers turn sour on advertising
beeause they have Ih'cu led to believe that it has some
magic power which, unassisted, will do the whole job
of building and maintaining sales volume.

"There are certain ))i('liminary steps that have to
be taken, certain contributory factors that have to be
in operation before advertising can })erform its pow^-
erful (but not miraculous) function. Too often, adver-
tising has fallen down because those who use it have
fallen down in creating the background against which
it can work effectively. Xor do 1 believe that adver-
tising has ever fallen down on any product worthy of
public acceptance where this preliminary work has
been done carefully and thoroughly.

"There is a natural tendency, of course, on the
part of those who sell advertising to oversell its pos-
sibilities. But in the hmg run the manufacturer who
has been falsely led to believe that advertising is the
Alpha and Omega of his selling problem loses faith in
advertising. His dissatisfaction and failure do injury
to advertising, not only in his opinion, but in the opin-
ion of potential users who hear of his experience.

"Perhaps here I should explain exactly what I
mean by advertising and by distribution. I sometimes
feel uncoud'ortable in using these w(»rds because I won-
iler if they mean to others what they mean to me.

"Suppose I start to manufacture a cigar in small
quantities. 1 think it's a good cigar and I tell my
friends about it when I meet them. They try it, like
it and come back to me for more. Sooner or later, I
have told all the friends that I can reach by conversa-
tion about this cigar and I start to write letters to other
'friends of mine in distant cities an<l jjlaces. In other
words, I begin to use direct mail. Because the cigar
is good and these friends of mine like it, I begin sell-
iiiir more and more of them. However, I have ex-
hausted my acquaintanceship and so I begin to adver-
tise the cigar in or(h»r to reach other people with whom
I am not acquainted. In other words, I have become
an advertiser.

"Xow, really, what have I done in becoming an
advertiser! Xothing more than to impart the news
that I am making a cigar, that I think it is good, that
I would like my friends and other people to try it hop-
ing that they will become regular customers.

"This capsule career of how an advertiser gets
that way, which 1 hav(» just outlined, comes from my
early days in the cigar business. Xow that my com-
pany spends large amounts in advertising, I continue
that same feeling al)out advertising; that the best kind
is essentially that which imparts a bit of new^s — the
news, as I told my friends in those early days, that I
have a cigar that I think is good and would like them
to try. Perhaps advertising can be defined as simply
as this: Telling |>eople about your product.

" As for the word 'distribution' — I would similarly
simplify it into a definition that would say: *Distribu-
lion is putting a product where people can get it'.'*

At this point I asked Mr. Xewman, in view of the
success of Phillies, if he would describe, in terms of

{Continued on Page 8)

I

February Shows Gratifying Increases

Cigars Registered 6.59 Per Cent Gain;
U. S. Cigarettes Were Up 2.52 Per Cent;
Snuff and Manufactured Tobacco Rise

11 \T the lino iiain in January was no flash m
cvidcnt-ed in \\\v Fo])ruary witli-

thc i)an IS

(liawal tiiiiuvs tor consumption, as ropoi

ted

in the sui.pU'nuMit to tlie Tohacc-o Baronu;tor

of tlu" TohacH-o Merchants Association ot the I nited
States. Auain, there were oratifym- increases m
cioars, ciuarettes, snutV, chewiiiii' an.l sinokin- t^obacco,
only little ciuars and lar-e ci-arettes tailmir to keep
ui> with the ])rocession.

The Tnitetl States total for all classes ot ci-ais
wa^ :^t;i,2;]:),nss, as comimred with :^;HS^,41N an in-
crease of :22,:Uo,(;70, or ().o!) per cent, lliere was a
o-ain in the I^hiiippine Island product, winch almost

wiped out the Puerto Kic(» loss, so that the net gam
for all classes was still n.n!> per cent.

Of course, the leader in volume (»f increase was
Cla^s A, its total <»f ;ai,iiSS,r)ir) comparinir with .^0^-
720,470, which was a plus of 2:1:^«;h,()40, or ^-^^^ per
cent. Auain the Philii»pines made a concomitant slight
iiain and Puerto Rico declined. n i Tr-

But in iK'icentaire of rise, two classes, 1) and i^-
went ahead of Class A. Class IVs total ot' 2,n.,8^6^
c(nnpared with l,7sii,»::2, which was 275,4:J^ or lo.4.)
per cent, ahead. Class K totaled Pa,(;4H, as against
ITIMV.K a iir(»wth of l2n,r)!>!», ..r 12.tl4 per cent. Ihe
Philippines showed a th'cline in Class 1) and an in-
crease in Class E. i'uerto l\ico retrograded in both

•lasses.

Product

Cigar>:

Cla>s A—

United StaU> . . . .
Philippine Islaiul-
Puerto Rico

Total

Class B—

United States

Philippine l>laiuls
Puerto Rico ....

Total

Class C —

United States
Philippine I -land-
Puerto Rico . . . .

Total

Class D—

United States . . .
Philippine Islands
Puerto Rico

February, 1939

Increase or Decrease
Quantity Per Cent.

331.iJ88.515 + 23,368,040

1»..05S.445 + 31U,(i95

24j,2() — i».-»30

7.59
1.97

347,1(»8.58U + 23,056,705

2,791,440 —
2.750 —
7.8«K) 4-

747,070

1U7

3.U50

7.31
21,11

2,M1,990 —

744,127

i.M03.2aJ —

571.332

42.292 +

27.592

43.250 +

U.ot^

25.188,702

2.()58.2<i5 +
24,652 —

532.140

275.433
13.208

Total

Class E —

United State*;

Philippine I -lands
Puerto Rico

2,082.917 +

202,165

\9\fM +
12.450 4-

20.599
12.450

Total

204,098 -f

33.049

20.98

2Ji

2.o;

15.45

14.40

12.04

19.32

(lapses B and C both went back, the former to Uie
tune of 747,070, or 21.11 pt'r cent., and the latter .xl,-
:5:rj, or 2."J:> per cent.

Cnited States cigarettes during the month totaled
ll,7Sl,74!),s:)0, as cmnpared with 11,4!)2,01>3,H7^ a rise
of'2S9',72;J,!>7:;, or 2.r)2 per cent.

Snutr piled up a total oi 2,!)78,8r)l pounds as com^
pared with 2,s:J7,71KS a gain of 141,()r33 pounds, or 4.9/
percent.

Chewiii" and smoking tobacco just about edged

ahead of the February PKJ8. The l^^^VT vm /']-*'' 't^"**
•).) 44,-, siX) pounds. Last vear it was 22,2.>.i,.)h.j. iliat
im^kes'a ditTereiice of 20(C'ni pounds, or 0.93 per cent.,
in favor of Fel)ruary 193!^

All the signs were plus in the cigarette coluiiin.
l*hilippine cigarette totaled 32,7r)0, as against 21,233,
an increase of ll,.')17. Puerto Hico cigarettes totaled
200,140, as compared with 50,400, a gam ot nearly
20(^100 (1{>!>,740, to l>e exact).

1 ittle ci'-^ars dwindled from ir),030,400 to 13,573,-
780. That was a loss of l,45(Mi20, or 9.69 per cent.

Saddest showing of all was made l»y large ciga-
rettes. The total of 55,3h1 compared with 182,061, a
decrease of 12(M>80, or 69.58 per cent.

Complete statistics covering withdrawals in Feb-
ruarv this vear with February last year are as fol-
lows :

Product

lutal All Classes:

L nited States

I'lulippine Islands .
Puerto Rieo

Grand Total . . . .

Little Cigars:

United States

I'hilippine Island^
I'uerto Rico

Total

Cigarettes

United States

Philippine Islands
Puerto Rico

Total

Large Cigarettes:

United States

Philippine Islands
Puerto Rico

Total

.snulT (lbs.):

All United States

Tobacco (Chewing and
Smoking) lbs. :

United States

I'hilippine Islands

Total

February, 1939

301.233,088 + 22.345,0/0
1<), 137.589 -f 33o,7o2

Increase or Decrease
Quantity Per Cent.

0.59
2.13

/5,0/U —

0.780

377,446,347 + 22,075,652

6.39

13.573.780 — 1,456,620

9.69

13,573,780 — 1.456,620

9.69

11,781,749,850 -|-

32,750 +

250.140 -^

289.723,973

11.517

199,740

2.52

11.782.032,740 + 289,935.2M

2.S2

55.381 —
121 +

126.680

121

45.600

55.502

172.159

2.978.851 +

141.053

69.W

75.62

4.97

22,445.89*. +
150 +

206.311
149

22,446.046 +

20(j,460

The Tobmco World

Fractional Gains Mark 8 Months' Report

Present Improvement in Business
Noted by Comparison of Figures of
Withdrawals on These Two Pages

J GET an idea of how much better things are
goins now in the industry, just compare the
records of Januarv and February 1939 with
those of the first eight months of the fiscal year,
as supplied in the supplement to the Tobacco Barom-
^Lr published by the Tobacco Merchants Association

^' *^c^i:?l qla^rpicture of the eight months' peri^

from the simple statement that ^'^^^^^^ ^^^^^'^^^^^^,,f^
cent.; cigarettes, 0.35 per cent.; snuff, 2.b3 per cent^
and manufactured tobacco (chewing and smoking) 3.39
per cXwhile little cigars declined 18.02 per cent., and
large cigarettes 13.35 per cent. , , i , , o 470 ftoi

United States cigar withdrawals totaled 3,4< 0,821,-
076 as compared with 3,442,096,925 an ln(^rease of
4 74l51, or 0.83 per cent. The Philippines' total of
m 4I7 67 compared with 137,740,141, a decline of 6,-
oqo 524 or 11.8.3 per cent., and the Pu^^rto Rico total of
TM) compared with 9,831,425, a loss of 8,631 (>A,.

In Class A the figures are as follows: United
Stat " io68 796,015, as against 3^M)1, 763,270 a j^n^
67 03'^ 745 or 2.23 per cent.; Philippines, 12( ,942,.KM),
0^i).5-,/4.>, 01 - I 1.5,916,755, or 11.63 per

as against ldt),?s.).',<4'), a lo-^^^^ *"♦• ♦ . ' oiu»oo7% «
cent?; and Puerto Kico, 6%,930 as against MH'i >.;^^|
decline of 8,3(16,045; bringing the total to 3,^43^^^^^^^
as compared with 3,147,625,990, a rise ot 42.8U9,94o.

Losses were recorded in each of the other classes,
as follows: Class B, U. S., 4,458,636, or H-^^ Per cent,
total 4 898 476 or 12.95 per cent.; Class C, U. fe, ^1,-
179 632, or 8!37 per cent., total 31,323,120, or 8 39 per
cent: Class D, U. S., 2,190,196, or 8.09 per cent total
'>331 870, or 8.51 per cent.; Class E, L. S., 480,1^0, or
13 29' per cent., total 455,947, or 12.60 per cent.

' The r. S. cigarette total for the eight months was
109 457 318,164, which compared with 109,081,18^,119, a
gain of 376,136,045, or 0.34 per cent An increase ot
1 144 817 and a decrease in the Puerto Rico product of
421,500, brought the net to. 109,461 53 W^
with 109,084,679,002, a gam of 376,8o9,3b2, or i).6o per

*''''' 'SnufT totaled 25,115,113 pounds, as compared with
*>4 472 042, an increase of 643,071 pounds.

Chewing and smoking tobacco totaled 201,751,0d7
pounds, as compared with 195,141,710, an increase of
6,609,224 pounds. . ,

Little cigars totaled 103,368,933, as compared wih
125,296,529, a loss of 21,927,596, or 17.50 per cent \\ ith
no Puerto Rico withdrjiwals, as compared with i9t>,690,
the total loss was 22,724,276.

The decline in large cigarettes was 299,4o3
Following are the complete figures showing the
debt months' comparisons for the two fiscal years:

Product

Cigars:
Class A —

Uniud States

Philippine Islands .
Puerto Rico

Total

Class B—

United States
Philippine Islands .
Puerto Rico

Total

Class C—

United States
Philippine Islands
Puerto Rico

Total

Class D—

United States

Philippine Islands
Puerto Rico

Total

Class E —

United States .
Philippine Islands
Puerto Rico . .. .

Total

1st 8 Month!
Fiscal Yr. 1939

3,068,7%.0l5 +

120,942,990 —

696.930 —

Increase or Decrease
Quantity Per Cent.

67,032.745

15.916.755

8,306,045

3.190,435,935 + 42,809.945

32.780.883
69.910
70.250

11.63

1.36

11.97

32.921.043

4.458.<i36
222.290
217.550

_ 4.898,476 12.95

341.236.620 —

203.486 —
429.850 —

31.179.632

32.t)88

110.800

341.869.956 — 31.323,120

8.37

8.39

24.873.«»52 —

201, ^>8 —

3,300 +

J 1<«(.196

144.974

3,300

8.09

25,078.320 — 2,331,870

8.51

.S133.»MM, —

>9,863 4-

480.130
24.183

13.29

3,163.769 —

455.947 12.60

Product

Total .\U Classes:

United States

Philippine Islands . .
Puerto Rico

< irand Total

Little Cigars:

United States

Philippine Islands .
Puerto Rico

Total

Cigaretlcs:

United States ... •
Philippine Islands
Puerto Rico

Total

Urge Cigarettes;

United States

PhiUppine Islands
Puerto Rico •

Total

Snuff (lbs.):

All United States

Tobacco (Chewing and
Smoking) lbs.:

United States

I'hilippine Islands

Total

1st 8 Months
Fiscal Yr. 1939

3,470.821,07') +

121.447,017 —

1.200,330 —

Increase or Decrease
Quantity Per Cent.

28.724.151

16,292.524

8.631,095

3.593.469.023 + 3.800.532

103,368.933 — 21,927.596
_ 796i68d

103,368.933 — 22.724,276

. 109.457.318.164 +
1.567.620 -h
2.652.580 —

376.136,045

1.144.817

421,500

.109.461,538,364 4- 376.859.362

1.755.757 —

1.121 +

186.261 4-

307,714

100

8.161

1,943.139 —

25.115.113 4-

201,750.934 4-
153 4-

299,453

643.071

6.609.224
141

0.83
11.83

0.11
17.50

• • ■ *

18.02
0.34

0.3S

14.91

4.58

13.35

2.63
3.39

201.751.087 4- 6,609.365

"Advertising Is Selling"

(Continued from Page 5)

tho definitions ho had just made, liow this attitude to-
waid advertising- and distribution woiked in building
up that jiartieuhtr brand.

"Well," he rei>Iied, "the story of Phillies goes
back to 1932 when we reduced the ])rice from 10 cunts
to 5 cents. Now Phillies were a (luality cigar and our
plan was to maintain this quality even though we cut
the price in half. Of course, the only way we could do
this was to build uj) a tremendous volume of sales
so that mass i)roduction would bring the cost of man-
ufacturing each cigar down to where the 5-cent price
would show a i)rotit.

"Following out the definition of distribution that
I have given you of putting a i)roduct where people
can get it, we went out to secure, territory by territory,
a thorough distribution. This was done by the force
of salesmanshij), by assuring dealers the* quality of
Phillies would be maintained, even though the price
would lie cut in half, and that we would carry this
news to cigar smokers with consistent and sufficient
advertising.

"Of course, when I say we went at this territory
by territory, I mean we concentrated on a number o*f
individual territories throughout the count rv at the
same time, first getting Phillies into every* possible
store and then launching our advertising.

"Xor did we believe that advertising would create
a demand for Phillies overnight. Advertising, as I
have said, is telling news and when you tell people a
bit of news they don't always do soinetliing about it
immediately; they store it away in their minds and it
becomes a i)art of their unconscious knowledge.

*/For example, in doing a thorough jol) on Pliil-
hes in such a big city as Chicago, we conceived the
fulfillment of our job in that territory as a three-year
task after initial distribution had been obtained.
Habits of people are not broken overnight and this is'
especially true of cigar smokers. Hut let a man who
IS wedded to a liking for one cigar read our advertis-
ing over a sufficiently long period and, eventuallv, the
news we have told him in our copv will be rec-alled
to his conscious mind some day as he goes in to buv a
cigar, by a window display, perhaps, ,„• a counter dis-
play with the result tliat he will decide to trv PliiUies
lor a change. He may not be conscious that our ad-
vertising has been at work on him, but it \m< never-
thless. After he lias tried Phillies, from there on it's
up to the quality of the product and the customer's lik-
ing lor It to heli> make him a steady Phillies customer.
W e could easily have made the mistake of think-
ing that a short period of advertising of J*hillies in
C hicago could do the job we wanted. We might have
become discouraged when it didn't, and then blamed
advertising for our failure.

*^4nother mistake we might have made would
have Ix-en, after we had achieved a satisfactorv sales
^^luine in a territory, to stop our advertising thinking
that the initial momentum would maintain and carrv
on this volume of sales. But it is just as essential tb
keeij on advertising, as to do the initial adverti^in-
spade work. ^

**I might amplify this thought a bit further in
terms of salesmen. You might like a particular sales-
man who calls on you very much, but if he doesn't

visit you often enough, even your liking for him will
not prevent another salesman who calls on you i)er-
sistently to get your business because he is conven-
iently at hand to remind you at a time when you are
ready to j)lace an order.

"1 mentioned that certain preliminaries are nec-
essary before advertising goes to work. To be a little
more s})ecific on this point, 1 would say, in terms of
our experience with Phillies, that they w^ould be such
operations as the following: an examination of the
sales of various brands of cigars in a territory to en-
able us to decide smokers' jn-eferences; an analysis of
the competition we can expect to face; a study of geo-
graphical smoking preferences. We would have to
examine the jobber situation, make sure that we se
lected a jobber who will fit into our scheme of things,
make sure that his salesmen understand our merchan-
dising aims, and so on. Until such factors are geared
to work smoothly, it is unfair to the force of advertis-
ing to set it to work.

"Without deprecating advertising at all I would
say that it has not done anything for Bayuk but shorten
the time that it took us to run up sales of Phillies to
the point where increased sales volume made up for
the price reduction policy we embarked on. In saying
this, I am merely segregating the important function
that advertising can perform and allocating to other
phases of merchandising their projier share of the
work. The function of advertising is still tremen-
dously important when described this way because, nat-
urally, shortening the time in developing Phillies also
meant shortening our period of carrying the brand at
a loss. We might have achieved the .same results even-
tually l)y word of mouth, but newspaper advertising
and radio— the mediums we have used consistently on
Phillies — did the job (piickly and economically.

"Merchandised on the methods I have outlined,
Phillies, during the first month after the price had been'
reduced, sold in quantities greater than during all of

"I might also add that because I Ixdieve in the defi-
nition of advertising that I have given— that it is essen-
tially news — I also believe very strongly that the ad-
vertiser, himself, should be the one to know what news
he wants to impart in his advertising. His advertising
agency has a definite function of helping him and reallv
should ojMMate as if it were the advertising depart-
ment of his company. Too much advertising, however,
is written t<. cater to the whim of a client, too much
IS written to fit the likes of certain individuals. In too
many instances, trick phrases, alliteration, or slogans,
pass liecause a client himself does not know what his
company shoidd be saying in its advertising copy.

•*Xow, get me right- I am not condemning or de-
teiidmg advertising. Proper advertising cannot b.
cf>ndemned and jirofier advertising needs no defense,
lo the extent that sometimes advertising is given un-
due credit for the progress of a product, so at times
is advertising given nnjustifiable discredit for the lag-
ging of the progress <»! a product whereas it was, also,
the presence of other factors in the former case and
the absence of other factors in the latter case.

** Advertising, in my humble opinion, is n.it mere
Advertising— Advertising is selliko."

— Print rrs' hd.
Tk* Tobacco World

Cigars are ihe
nioflt pleasurable
and economical
form of smoking.

First Issued 1929

BAYUK BULLETIN

Devoted to the
best interests
of the men vrho
sell cifsars.

Prepared twice a month

PHULOFAX

(The Retailer^ s Friend)

SAYS

When a man can't
learn by listening to
others, he shouldn't talk
to make others listen!

Here's the gist of an
experience as related by
C. R. C.
"I called on a buyer regularly for
three years without success. Last
week. I called again and made a sale.
Perhaps I shouhl have sold him on
F.cond or third visit but I wouldn't
have Kotten the thrill that 1 did last
week. Boy, maybe I wasn't happy. It
^ust goes to show what is worth
^oing after, is worth keeping after".
Congratulations, C. R. C.

Do you go out to get orders or do
you go out to make customers?

K. C. M. writes Phil that "Usually
at our sales meeting, we have several
of the salesmen relate the best talk-
ing points to dealers <m our push
items ... At our last meeting, we
had the three salesmen with the
poorest showing relate the toughest
arguments they had to combat. At
least one of the other salesmen ad-
vanced two or three logical methods
of handling these arguments. Thus,
ail the salesmen benefitted more than
from merely hearing of the 'best*
talking points''!

Good idea, K. C. M.

"From all I heard, he was a ver>'
isiee fellow and smoked lots of cigars
. , . He lived in my neighborhood and
pHxsed my store fre<|uently but I
iHver got any of his business. A
couple of weeks Kffo he had an ac-
cident that confined him to his home
. . . I dropped him a brief, polite note
rf sympathy. Yesterdav he came in
_ ly store and bought a box of cigars"
lio writes T. L. C.

Phil says the moral is that you
found business by going after busi-
ness. Good stutT, Mr. C.

Phil observed this card in a window
of a cigar dealer located on a corner
where the folks wait for the trolley.
•*My store is nice and w»rm — wait
for the car insitle".

Old stunt, maybe, but Phil bets it
pulls busings. Q

In his meandering around towTi,
here's another card Phil miw in a
prominent spot on dealer's back wall
case. "All cigars sold here are guar-
anteed fresh. Box Ti»de a Specialty".

Dealer reports very pleasing box
business, particularly on Fair Trade
brands.

Sell Cigars by thx Box!

"SALES-DOGGLING"

or Haw Not to Sell— No. 36

In which the Boss tells Otto that
"knowing" is often easier than "thinking".

d?K^

U. B. I.

wttABAYI'K aC4B9 INCMM^
«/ JbM ft^an atoe* i097.

BOSS: Otto, do you believe you
are contacting all the desirable
accounts in your territory ?

OTTO: That's an easy question
to answer. Boss. I am not only
contacting all the desirable ac-
counts but 1 am selling all the
desirable accounts in my terri-
tory !

BOSS: Man. you are good, aren't
you? In other words, there are
no more good accounts in your
territory other than the ones
you are selling — is that right?

OTTO: You said it. The dealers
I don't sell, the other guy can
have with my best wishes!

BO^f Well. Otto, let mm ask
you if you sell the dealer at 1418
South Broad Street— Do you?

OTTO: Ha! Ha! Ha! That's a
hot one . . . 1418 South Broad
Street is run by a fellow named
Billy Smithers and he's bum pay
... we had trouble collecting
last bill we sold him !

BOSS: Are you sure Billy
Smithers' runs the place?

OTTO: Sure he does ... at any
rate, he did the last time I was
to there.

BOSS: When were you there
last. Otto?

OTTO: Oh. now let me see . . .
I was there . . . now let me think

I was there uh, uh

a little .
uh —

BOSS: Never mind stalling.
Otto . . . you haven't been in 1418
S. Broad Street for 18 months
because Smithers sold out over
18 months ago to a fellow by the
name of Howard Brown and he
is good pay.

OTTO: Well, what do you know
about that?

BOSS: Evidently you don't
know much, but how alx)ut that
diner on the new Easton Road,
this side of Danboro?

OTTO: Cripes, that diner
doesn't sell enuf of our stuff to
bother calling ... I can't waste
time with such a poor outlet!

BOSS: Otto, you haven't called
on that diner for two years !

OTTO: How do you know. Boss?

BOSS: Because the fellow who
runs that particular diner now
has seven other diners and does
all his buying in the diner we
are talking about.

OTTO: Well, who would have

thought that?

BOSS: That's just your trouble
Otto . . . you try to do a lot of
thinking about some things
when it would be easier to
KNOW alwut some things . . .
you think there are no more

good accounts in your territory
but you don't do anything to
actually find out. You think
you're good — well let me tell
you something ... so long as you
think you're good, you'll never
be any better! Why don't you
take the attitude that maybe
you are not lOOSr perfect . . .
that perhaps there are a few
good accounts that you are not
selling and then find out!

OTTO: Bawling me out a little,
eh Boss ? Well. I'll bet you there
aren't very many good accounts
I'm not selling!

BOSS: You're on. Otto . . . now
just what is the bet?

OTTO: I'll bet you $5.00 that
there "aren't very warn/ good
accounts I'm not selLng'^'.

BOSS: What do you call "very
many"? 10, 20. 30 or 50 . . . we'll
have to know that, Otto, before
we can bet!

OTTO: You're right. Boss, but
howinell do I know how many
there are!

BOSS: What are you going to
do about it?

OTTO: Whv. doer-gone it. I'm
going out and FIND OUT!!

BOSS: That's great. Otto . . .
here's a cigar and a pat on the
back!!

Webster only knew the half of it

Webster's Dictionary defines
the word, "sell" as meaning
to transfer to another for a
price. But that is not the modem
version of salesmanship. Suc-
cessful selling, today, is based
on the principle that nothing is
really sold until the customer
is satisfied. And that applies
whether it's automobiles, shoes
or cigars.

You often hear the expression
"customer relations" but all it
means is putting yourself on the
customer's side of the counter
and going beyond the mere
oiTering of goods and doing that
extra something that makes it a
permanent sale and makes him
a lasting customer. That is real
selling — not according to the
dictionary — ^ but according to
the school of experi^ice.

Phillies

(BATUK PHnjlDEIJ>HIA PESFBCTO)

Havana Ribbon
Mapacuba
Charles Thomson

Prince Hamlet

BATVK aaAPIDS BUILD aUSINBtS

POPULAR LEADERS

By P. Lorillard Co

BEECH-NUT

UNION

LEADER

OLD GOLD

Double Mellow

Cigarettes

LILLIAN

ROCKY
FORD

VAN
BIBBER

5 for 10«

SENSATION
20 for 10<

BETWEEN THE ACTS

15« pkg. often

TWO SPORTS BROADCASTS

The WABC "Sports Hovicw," hroadcast <>v(m* the
k.'v New York station of CHS l.v Mel Allen, will be
s|)onsore<l startinir April M by I^rown & Williamson
Tol)aeeo Corp., Louisville, Ky. H. &: \V. will utilize
the program Monday, Wednesday and Friday from
<):<).") to Ci-Ao P. M., eurrent New York time. This com-
l»any launched another s|)orts broadcast on the Colum-
bia Pacific Network March 1^, to be heard four times
a week.

BEEN AT IT 22 YEARS

G. II. P. Cigar Company '« twenty-setond year of
consistent advertising in national newspapers began
last month in leading dailies in key cities throughout
the country. Every salesman of Kl Producto and La
Azora cigars has been equipped with a new portfolio
containing instructions on stepping up sales during the
campaign which will last from now to the en<l of the
year.

TO CONTINUE TAX

The two-cent cigarette tax is one of eight emer-
gency levies which will be continued for another two-
year period starting July 1 next if bills introduced
in the Pennsylvania House by Representative Winner,
chairman of the Ways and Means Committee, are en-
acted. The likelihood is that all emergency levies will
be renewed. The cigarette tax is calculated to vield
12,300,000.

to

p. LORILLARD CO.

Earnings of I*. Lorillard Company for year to date
have shown a little increase over a year ago and sales
volume is also higher, David IL Hall, president, stated
at the annual meeting. Sales of Old Gold cigarettes
are just about hohhng their own, but the Sensation ten-
cent cigarette, still shows increasing volume. Cigar
sales in first two months of this year showed a notable
growth, but not as large as the increase in cigarette
sales.

Consumption of Old Gold cigarettes fell off last
year, "but 1 think we are in a position to make a slow
growth on the brand," Mr. Hall said. "However, we
must regulate the growth of the brand according to
our need for nuiking money," he said.

No important change in Lorillard 's advertising
expenditures this year is anticipated, Mr. Hall said.

Leaf tobacco and manufacturing costs for 1939 will
l)rol>ably show little change from 1988. The company
had a good supply of leaf tobacco when it introduced
the Sensation cigarette, Mr. Hall said.

CONGRESS CIGAR CO.

Net income of $r)H,142 after depreciation, amor-
tization, federal income taxes, etc., is reported for 198H
by the Congress (Mgar Co. This is etpial to twenty
cents a share on 298,()(K) no-par shares of cajiital stock,
excluding r)(),4()() treasury shares, and compares with
net profit of .+l()4,r)Sl or thirtv-five cents a share on
2!>r),2(H) shares of capital stock in 1937.

Current assets as of December 31, 1938, including
^832,539 cash, amounted to $4,()ir),997 and current lia-
bilities were $2r)l,r)38 compared with cash of $248,255,
current^ assets of :t4,l()l,424 and current liabilities of
$283,305 at the end of ])receding vear. Inventories
were $1,71(J,<>20 against $2,468,719.

Total assets at the close of 1938, were $5,854,001]
compared with $5,875,498 on December 31, 1937. Total
surplus was $905,764 against $852,993. The companv
has no funded debt.

LIGGETT & MYERS

Business of the Liggett & Myers Tobacco Com-
pany in the first two months this year was fair, but it
is too early to tell what the year will sliow, J. W. An-
drews, president of the company, said at the annual
meeting of the comimny. He said he did not expect
much change in manufacturing costs this vear, but, if
any occurred, it would probably be a smafl decline.'

On the nuitter of costs, Mr. Andfews i»ointed out
that the price paid for the total flue-cured crop of 1938
was^ 22^17 cents a pound, against 22.87 cents a pound
m 193/. The reduction in the cost of this tobacco
should help some, he said, Init not much when the cost
reduction is averaged in with purchases of tobacco
over two and a half or three vears.

ABIERICAN SNUFF CO.

The American Snuflf Companv for the vear 1938
I'liorts a net income of $1,654,984 compared with a
net profit of $1,572,682 in 1937. The per share earn
ings on the conunon stock for 1938 amounted to $3 31
again>t $;).12 in the preceding year. Current assets
as ot Deceml)er 31, 1938, amounted to $14,896 634
HKainst curmit liabilities of $929,606. Inventories at
tne end (it the year at cost amounted to $6,402,581 as
compared with $7,081,231.

The Tobacco WowU

WESTBROOK PEGLER SAYS.

IF Mr Tekes re-ards the eigarette as a great

nuMuiee to health he must favor the abolition

Bj of the industry and of the trade in other iorms

of tobacco as well. „ ,

He does not press that point, however, and iM
u-.re > h) so he probablv W(Uild eateh a sw.tt po » m
u 1 tmnNlK-nnld and friendly Seeretaiyot^

Tre isurv Mr. Ib'inv Morgmthau, wlm last year col-
lided n'taxes from the mannfaeture o tobacco, in-
•1 1 m' ciuarettes, more than half a b.ll.oii (h^lhirs.

Even Mr. Roosevelt, a cigarette smoker himself,
nu^dft^ reach across the table an<l whang Mr Ickesoiu
tl h ' crI>ok of his stick at the next Cabinet meeting
I the tobacco habit is one whose aholi .on wo I
wreck not only the New Deal but rattle the I luted

^^''*The Treasury, which must find the money that Mr.
Ickes spends, wonUl h>se $5(;s, IS 1,000 a y.'ar, vast areas
;^ olmcco laiul in nine States wouUl beccMue a resh
n blem to po<n- Ib.nry Wallace-. th<Misands ot toW^^^^
hold hamls and fact(ny workers employed not onl> m
to lac .<> manufacture but in ch.pcnch.n operations
l^^mld be thrown onto relief or WPA, and there would
be -hastlv consequences in many other directions

"The half luHhm <.f taxes on cignn.tte> and tobacco
^Manufacture is about half the size of t^'^" ril^'l^df
loot fnmi the individual income taxes and abcmt hall
the size of the corporation income tax revenue. More-
over, individuals and c<Hporati<.ns in the tobacco trade
are large ccmtributors to the individual and corporation
inc<mic tax, and if tlu'ir income were cut otT those totals

wouhl drop sharply. , ,

Verv (mUUv -and here is a tip for some ale.t lob-
l,vist in'search of a rich ..lient-the tobaccc, industry
inaintains no h.bby here cmparable to the liquor lobby
and mav have none at all.

T(>i)acco stores pav real estate taxes, consume heat
and light, empU)v thousands of clerks and require the
services of a not reatlily calculable number and variety

of workers. ,

Tlie cancellation of all cigarette ami tobacco a<l-
vertisinir would break many papers and magazines
whose ma ruin between profit and h>ss is no greater than
their income from tobac.-n mpy. The editorial, me
chanical and advertising staffs then would V»e on the

street. . , • ^i •

(Hh<*r pai»ers and magazines, losing their niconie,
would have to fire workers proportionately, and the
load of their support wtmUl bi- shifted almost bodily
to the government, which simultaneously would lose
that half billion and an unknown sum now received m
income taxes from pei>oiis and firms in the tobacco

trade. ^ . ^ ^^ ,, ., „

Last year Iluuh .T<»hnson went into South 1 ato
Una/checking information on the attitude of tobac<'o
growers toward crop or acreage curtailment, ami < is
covered one grower who ha.l called on the local \N I A
office and announced that the minute his acreage was
shrunk he was going to dump 97 colored field hands
onto the WPA's doorstep.

Tobacco an<l liquor pay in the form of direct
Treasurv taxes alone more than a billion a year, which
is more 'than one-sixth of the total receipts.

April, /9.W

Whata
record !

IO%0fA!lCidars
Sold In ^3^

KING

EDWARD

^^^^^m

^^W.

KING EDWARD -

America's bigsest selling
cigar-is a great profit-maker
for dealers and jobbers.

Keep (ull stocks on
hand. Increase your unit
sales with King Edward Ten-
Pack. ..10 big King Edwards
for a quarter— a fast moving
spring and summer item.

JNOJdJWlSHER_&^ON,_lnc

Cianr Uanuiacm^^ JACKSONVILLE, FLORIDA

Now IS the time

w

hen all good

tobacco retailers

will prepare for

FATHER'S DAY

JUNE 18

fr

NOW...FOUR EXTRA COUPONS

in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamion Tobacco Corporation

WILLIAM T. CLARK

William Tlnmins Clark, inosidcnt of the W. T.
Claik Tohai'co Company, Wilson, X. (\, twice presi-
dent of the Tnitcd Slates Tohaeeo Association, died
Marcli 12, in a Hot Sprinofs, Ark., hospital of infhienza
and pnenmonia. lie was born at Pittsylvania, near
Chatham, Va., December 4, 18()7. He was educated at
Lynchburii, Va., and at the aire of It) began work for
the Lynchbnru Tobacco Company.

He went to Wilson .38 year.s au:o, and shortly after-
ward formed the W. T. Clark Company, one of the
largest in<h*pendent dealers in leaf tobacco. He served
as president of the tobacco association in 1934 and
1!K).). He was a director of the orujuiization when lie
died.

ISRAEL LEWIS

Israel Lewis, founder of the I. Lewis Cigar Com-
pany, (lied March !> in Presbyterian Hospital, New-
ark, X. J., al'tur a week's illness. He was eighty-two
years old.

.Mr. Lewis, a native of Lithuania, came to the
United States with his parents when he was ten years
old. He founded tlie cigar company sixtv vear.s ago,
in partnership with the late Morris Hachlin.* Built on
the juesent >it<', the factory grew until now it employs
1800 persons.

Altln»ugh Mr. Lewis retired several years ago, the
business has been continued l>y his six sons, Ilarrv
Stephen, C(»urtney, Abraham I.j Lawrence and Donald
Lewis, all of Newark.

MELODY AND MADNESS.

'I'he I*. I^orillard Company will present its Old
Gold show, "Melody & Madness," with KolxM-t Bench-
ley and Artie Shaw > Orchestra over ninetv stations of
the NBC-Blue Network, beginning Mav 23. The pro-
gram, which will continue for one vear, will be heard
on Tuesdays from fL(M» to 9:30 V. M., K. S. T.

Stations airing the show will imdudi* those of the
Basic Blue Network: WCKV, WHTD W\BY
WMFF WNBC, WLKC, WJTN, KMA; th^ Michigan
Network, Blue Southern (Jroup, Blue Southeastern
(jronp: KFSD: Blue Mountain Group; WHN WOW
WLBZ, WTAR, WCOL, WOOD, WBOW, WGBF
WHLA, \\mi\ KSOO, KANS; Southeastern Group-
Florida (houp. Northwestern Group: WALA. WROL
WAFO, KGN<', KFDM, KRIS, KRGV: So^th\i^un:
^^'/u^y^V^*'*** ^*'""tain Group, Red Coast Group;
KTAR. K\OA, and the California Vallev Network

LeiiiH^n & .Mitchell is the agency.

SEE CIGARETTE RISE

PVnner & Beane Industries Service says, in its
current analysis of the tobacco industrv:

"Although the 1IK38 total of consumption, 103.7
billion cigarettes, constituted the sixth successive an-
nual increase and lepresented a new high for the in
dustry, the rate of gain has declined in recent years
Percentage gains from year to year were V.l.T) per cent,
in l').3(), <; per cent, in 1937 and 0..') per cent, in 1938.
For January of this year consumi)tion of L3.9 billion
cigarettes wa> reported, a (> per cent, gain over Jan-
uary, 1938. H is probable that cigarette consumption
m 19.39 will show moderate if any improvement. Fur-
ther, cigarett<' selling prices have been unchanged for
♦ wo vears and no revisimis ap|)ear likely this year.

"Enough evidence is at hand to warrant the view
that tobacco costs in 19.38 were little ditTerent from
the two previous years. A three-year moving aver-
age of estimated cigarette tobacco costs (which rellects
the average age of major producers' inventories) stood
at 2.3.() cents a pound for the latest v<>ar, against 23 1
cents in 1937 and 23.4 in 193(». The i93f> tobacco crop,
coming to market next fall, will rejilace the expensive
193(; crop in the three-year average. This, if recent
values for cigarette leaf are maintained, would bring
a reduction of more than two cents a pound in the
three-year average cost. Thus, assuming no nugor
change m aggregate advertising expenditures, which
IS one of the m<.re flexible profit determinants, the ciga-
rette industry should achieve substantiallv similar or
slightly improved earnings this vear, in "reflt»ction of
sustained sales volumes and prices and slightlv lower
co.sts. As m 1938, the earnings performance of indi
vidual companies will tend to varv according to dif-
ferences m advertising |>olicies and shifts in trade
position."

LOUIS A. KRAMER.

Louis A. Kramer, director and vice-president of
Hayuk t igars, Inc., in charge of domestic leaf tobacco
imrchasi^ fey the lart twenty-two years, died March
-dh at the Hollywood Hotel, Hollvwood, Florida On
vacation in ("uba and Florida since earlv in the month
he suffered an attack of coronary thrbinboHis, which
caused his death. , « wi

IL-iving devoted more than fortv vears to the studv
of tobacco types, he was acknowledged as an expert
throughout the country. Under his supervision, Bavuk
Cigars, Inc. conducted a rc^ultful course of education in
tobacco crop and yield improvement in Pennsvlvanin

He js survived by his widow, Roseniar\' I Kramer

i^n. ^i^t'^^'s a"'' t^" hrothers. The funeral was in
I'hiladelphia.

r^ robMco W0H4

iL

MODEL TOBACCO

PRESENTS THAT POPULAR COMEDY TEAM
OF RADIO STAGE AND SCREEN

HOWARD & SHELTON

,. THE IVIODEL MINSTRELS .:^

EVERY MONDAY NIGHT

COAST TO COAST

COLUMBIA BUOADCASTINO SYSTIM

Sett your newspaper for local time.

MECHANIZATION & 5-CENTER

(Ciniliniicd From Page 4)

an'^o f a manually o,.e..at...l bunch -."'•'"■;.^' '.';i;l «

;nS .l''n'-n.i"Vs 'either e„ually -.,• in accordance

^^''''4V;''4:n;;:rT;:!.Se"'n.achine hneutea in 1917
iKTlonns the three successive ,.,.erat...us ol nmk.ng Cl-
1 ars e ntin-lv autnnu.tieally. However, .t re.,mre8 the
t vices oflnur ..,,..rators-^,ne to feed he tiller t»-
1 ace int.. the n».<'hine. another to lay out the hinder,
" , , ., lav out the wrai-per, and a fourth to exam-
, ' , , „„pi,.,..,l ci«ars hefore ,.lacin« them .nto trayB
Th.. ^l.orHill.r machine, invented at atout the
same time, consists of two separate devices-one o
f rm the i Her a-,d apply the l.n.der and at.other to
roll "he ci«ar into a wrapper. It requires the services

of two operators. .._:._

Labor Productivity
The lirst result of the introduction of ciKar-mak-
iuLr machinerv was a tremendous increase in the man-
hour output "in the production department of cigar
cZhlishnionts. A recent study of labor Productivity
in the ci-'ur industrv made l.y the Bureau of Labor Sta-
tistics uTco-operatibn with the National Ueseareh Proj-
eet of tlie Works ProKress Administration revealed
that the lalH.r time required in makint; cigars has been
reduced from alH.ut 25 man-hours per KKK) oc cigars
made bv the haml process to O.ti man-hours required
hv a 4-oi.erator machine. Kor the plant as a whole,
11,.. labor time per KKK) 5-cent cigars was reduced from
about .Ti' • man-hours under the hand process to
sliijhtlv l,ss than 1<> man-hours in mechamzod plants,
li, otbVr words, l.>s than half as much lalmr is re-
quired to manufacture cigars with the aid of the long-
filler machine as by the hand process.

In the case of short-filler cigars the merease ,n
labor productivity has been even greater. The time
..onsunied in making cigars has l^en reduced from
alKiut 19Vi! to f>Vi man-hours per thousand, while for
the plant as a whole the reduction has R-en from .7.8
man-hours to 1:2 man-hours per thousand. This is a
reduction of more than 'u per cent.

Afnt. 1939

..Vo-i:::

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter - for the Eye

It's Lighter
It's Better

for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. J.

EMablitlMJ 1886

"BEST OF THE BEST

99

^^^^L^ A. SANTAELLA & CO

Office, 1181 Browlway, New York City

FACTORIES Tampa and Kmg W0st. Horidm

AUTOKRAFT

CIGAR BOXES

BoiU Nattire
Cedar Chnts

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP

l-ima. Ohio
(liicago, Ill-
Detroit, Mick.

HellaiB, Vm.

Hanover, Pa.
Philadelphia. Pa.
Wheeling, W. Va.

n

Tobacco Merchants' Association

Registration Bureau,

341 Madison Ave.
NEW YORK CITY

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

Kegistration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A— An allowance of $2 will be made to member* of the Tobacco Mer-
thants' Association on each registratiuii.

Note IJ— It a report on a search of a title necessitates the reporting of more
than ten (.10) titles, but less than twenty -one (21), an additional charge of One
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty
(20) titles, but less tnan thirty one (31), an additional charge of Two Dollars
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

NEW REGISTRATION

MI SONITA:— 46,720. 1 or cigars. Registered In Ruv Suarez &
Co., l'a^saic. X. ]., on March 14. 1W9.

TRANSFERRED REGISTRATIONS

AMOS: — 22,798 il'. .s. Tobacco Journal). I'or cigars, ciRarettcs and
chcnxtt-. Rc,t,M-t<rt(i July o, i*'()(). by Chio Ci^ar Co.. St. Louis,
Mo. 1 ra!i«-lt.rr(.{l to (ihio i*v Ro\ira, .\cu York. X. V., and re-
transferrcd to Mclcndi-I'ucvo Co., X\\\ York, X. Y., on March 0,
1939.

ROBERT EMMET:— 41,589 i r..bacco Merchants Association of

the l'njtt<l Static). I'or all toijarm imxhut'-. Rt-.^istcrcd January
2, 1920, by Sjiictz Cigar Co.. Detroit. Mich. Transferred to .Ameri-
can Bo.x ."Supply Co.. Detroit. Mich., and re-transferred to Minnie
Borders, Detroit, Mich., on June Id. lM.i7.

SMILING JOHNSON:— 31.438 (Trade-Mark Record). lor cigars,
cigarettes, cheroot>-. little ciuar^. --togio. smoking and chewing to-

l)acco. Registered ( d t

tihiT

•'(15. bv The Harvey Tobacco Co.,
in lev. .Scranttiii, I 'a., and re-

>crantc>n. Pa. Tran>.ferred to .\. 11

transferred to Harvey's. Inc.. .Syracuse,- .\.Y., on March 23, 1939.
NICHAVO: — 46,590 (Tobacco Merchants .Association of the United
.^tate-i lor all tobacco products. Registered December 31, 1936,
by A. H Tinley. ."^cranton. Ra. Transferred to Hars-ey's, Inc.,
Syracuse. X. Y., on March 25, 1939.

^Manufactured Tobacco Produced by Classes

(.A- reported l)y the P.ureau <.^i Internal Revenue, based on
manufacturer-' return- of production)

Month of December

Increase or Decrease

Product 1938 Quantity Per Cent.

Plug 4.289,93(1 4- 449 312 1 1 70

T'^vist 44(U3.^ — 11.791 2.61

Fme-cut L heumg 382.042 -f 9.608 2.58

Scrap Chewing 4,K?2,533 + 782.266 23.35

Smoking 15,580,293 + 1,115,103 7.71

Total 24,825.133 -f 2.344,498 10.43

Twelve Months Ending December 31st

Increase or Decrease

Product 1938 Quantity Per Cent.

P'ug 54.911.152 — 3,419.M9 5.Ht^

Twist 5.255,925 — 1.518,267 22.41

Fme-cut Chewmg 4,ry>8.2P> ^ 331,041 6 62

Scrap Chewing 44.471.258 — 1.088.156 2 39

Smoking 198,930,365 + 11,156.036 5.94

Total 308,236,919 4- 4,798.923 IM

*The production figures are in pounds, and are subject to revision
until published in the annua! report of the Comttiissioner of Internal
Revenue.

Internal Revenue Collections for February

February
Source of Revenue 1939 i93g

flffars $ 863.802.57 $ 819.171.13

Cigarettes 35.345.829.49 34.477,587 22

SnufF ........... 536,193.25 510.803,60

I obacco, chewmg and Miioking 4.042.256.15 4.003 565 45

Cigarette papers and tubes 49,4W).22 93 (X)7 24

Leaf dealer penalties ' 86^87 '26 17

'4

CIGAR BOXES

T«L Alc«aq>la 4-9S33

IstabliahAi un

OUR HIGH-GRADE NON- EVAPORATING

GIG4R FLAVORS

Make tobacco meUow and smooth in charactair
and Impart a most palatable flavor

fLAVORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Brands
aKTUN. AaOMATIZEI. BOX FLAVORS. PASTE SWEETENEKS

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

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERHIANTS A.«;SOCIATION
OF UNITED STATES

<^^>

lESSE A. RLOCH. WtieelinB. W. Va President

WILLIAM HE.ST, New York. N. Y Chairman Executive Committee

.MAJ. GEOKCF \V. HILL. New York. \. Y Vice-President

GEORC.E 11 IHMMELL. Now York. N. Y Vice-President

.<5. CLAY WILLIAM.S. W i.iM. n S.ilem. N. C Vice-President

HLHS LTCHTEN.STEIN'. New York. N. Y Vice-President

A.SA I.EMLEIN. New York. N Y Treasurer

CHARLES Dt'SHKINn. New V. rk. N Y Counsel and Managing Director

HeadinLTftcrs. .^41 M,idison Ave, New York City

THE NATION.XL .^SSOCIATION OF TOBACCO
DISTRIBUTORS. INC.

ALAN r DAVIS, n.^lfimorc. Md President

FDMCXn C. DEARSTYNE. Alhanv. X, Y Vice-President

lOSEPH KOLODN^'. 200 Fifth Ave, New York. N. Y Secretary

j. RENZ EDWARD.S. K.insas City. K.in Treasurer

N.^TIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BKN L. LASCIIOW. W2 Fast Fifteenth .St., nntoktyn. N. Y President

R. L. McCORMTCK. S2 Klein Ave.. Trenton. N. J First Vice President

L J. OLLENDORFF. 780 \VeM End Ave., New York, N. Y. ...Executive Secretary
ALBERT FREEMAN. 25 Wc^t Bmadway. New York, N. Y Treasurer

TOBACCO SALESMEN'S ASSOCIATION OF
AMERICA. INC.

HARRY A. AHRAMS President

LEO RIEDERS. ^»X) Broadway. New York. N. Y Secretary

JACK E1)EL.STEIN Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A. HOLLINCSWORTH. 2.^.^ Broadway, New York. N. Y President

LOriS KLEIN First Vice-President

ERIC CALAMIA .Secretary

ARTHCR S MEVER Treasurer

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

ALVARO M. GARCIA President

THOMAS C. BRFEN Treasurer

SAMUEL BLUMBERG General Counsel

Executive Committee— Alvaro M. Garcia fEx-oflficio), Thomas C. Breen, Harley W
JefTer*on, D. Emil Klein, Walter E. Popper, Harry S. Rothschild, and Arthur
A. Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

I'.RI'CE G NERINGER. Red Lion. T'a President

r M FHEHALT. Red Lion. P.i Secretary

A. S 7IF.GLER, Red Lion. Pa Treasuret

G. W. MAITRER, PIPE CARVER

Goomo W. Maun r, who for fortv-sevon vcar«
carved iiiocrHcliaiun iiipo howls at his honch in David
P. Ehrlicirs stoit' window in Court Street, Boston,
died Maieli {> at tin- airt' of 71.

He spt'ciahzed in husis of famous men and there
are few world fiirures, past or present, who liave not
)»een rendciod in ineorsehauin by Mr. Maurer. Just
before his final illness five weeks ago he completed a
lik«'n('ss of Ahraham Lincoln. His carvings were of
many sizes, hut all of them showed a remarkable atten-
tion to intricate d<*tail.

During his career he carved thousands of pipes,
whicli sold from *2() to $150.

The Tobacco World

ESTABLISHED

1881

A

MAY
1939

^^i

r

^«l4

Wi

^^'cult

^■Ont

TOBACCO GAINS FOR ,

THIRD MONTH OF '39

It is a mammoth industry which, in
the course of a single month, is respon-
sible for the payment of nearly Fifty
Million Dollars to the Government in in-
ternal revenue coUections. That is what
the tobacco industry accounted for in
the month of March, 1939, when you add
up the revenues from cigars, cigarettes,
tnuff, chewing and smoking tobacco,
cigarette papers and tubes, and leaf
dealer penalties, the last of which was
the negligible amount of $47.20. The
grand total for March, this year, was
$49,321,349.28, as compared with $47,-
855,362.61, an increase of $1,365,986.67.
The tobacco total this March was,
roughly, Two Million Dollars above the
internal revenue collections for liquors.

HoBABT B. Hankins— -Editor

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. S9

MAY, 1939

No. 5

^==.K ooininciul tlic i»-cmiity of Ibo ^at.onal Coun-
\W cil for tho l'i(.in..lion "f Father's Day as shown
^ ' ■ m a rcout puhlicily ivlcas... The slory was

sent to thf husiiK'ss papiTs ill oach ot thosi^

industries most lilo'ly to <-a„itali'/.(. on the eeh'tiration.
As ill manv simihir reh.ises. tlieie were hiank s,.aees in
t "tor?, iiHe.. ill so that it would '- -<-? l^-^"^ -
to each ohiss of l.usmess interested. Ihis >Par
the tohaeeo stores are puttinj!; greater elTorts into
Fathor's Dav than ever hefore," be^ns l^e story we
Tccoived, -lUotiiiK Hill llollinKsworth, who had bee
named co-chairman of the Tol.aeco 1 ivisioi, be ore he
• "i.rned as head of the Hetad Tobaeeo Deah- s;^ol
America, Inc., to be succeeded by Kric >h.iii.a Th
toh'icco store " tlie release continues, "is the uifht ul
ltd ar ..rs'of Father's Day merehandise It eames
hose wares which are ideally suite.l for S-''.' ^f" [ "^^ j.^
It then sjoes into a freiieial deseriptum ot the losv.irU
Chandler Christy post-MS, with ^vhi/'h /n.r readers are
already familiar throu-h our ineiilioniti'^ then duiiuR
he last sev<.ral monllis. and describes the widespread
publicitv cainimi./n in newspapers niasrazines, radio,
leatres, and so on. The beauty of the thni«, tor the
..baeco Vctaih'r, is that this story api>bos more aptly
lo his business ihan to any of the other lines of busi-
ness beiui; publi.'ized in connection with Jatlier s 1)..>.
Anv tobacco retailer who does not cash in on all this
p,<.pa«a..da must be of th,. type of the Southern store-
keeper wh.., sittinu in a r,.,ker in his store, asked a cus-
tomer to come back in an hour-he'd be standins; up
then, and could wait on him.

m

HT? fi1«'s arc >n (.ftc'ii rcft'nc*! tc as a matter of
nrcn-a Hint, .'V.n \\w\vj:h tlu' m'ws Inoke early
ill April, we iiiu>t iciM.rt hen. tho si-iuncj: <.f the
trade airret^miit with Turkey, -oin- into efTeet
nrovisi<aiallv cui May r,tli, to continue in force there-
after, '* unless terminated by either government on two
months' notice at the end of any of the calendar years
1939, 1940, or 1941 ; thereafter it will be subject to ter-
mination V>v either Government on six months notice.
The a^-reement provides for reciprocal tariff conces-
sions between the Vnited States and Turkey ot the
principle of unconditional mt,st-favore«bnation treat-
ment with re^mrd t«» customs duties and other forms o!
trade control.

F imrticular interest to our iinlustry and trade
U the reduction made in the United States duty
on imimrted ci-arette leaf tobacco. The duty
on unstemmed cigarette leaf tobacco is reduced
from 35 cents to 30 cents per pound The n^ 30 cent
rate ia equivalent to an ad valorem duty of fiO per cent,
on the basis of tlu- avcra-c unit value of American nn-
Iiorts of such tobacco from all countries m l.UH. Am

l)orted cij^^arette leaf tobacco, sometimes known as Ori-
ental or Turkish tobacco, is of an aromatic type not pro-
duced in the United States. It is used almost entirely
for blendin*.' purposes in the manufacture of American
ci'^irettes, the blend in standard brands usually bein^
about 10 ])er cent, of Oriental tobacco to 90 per cent,
of domestic tobacco. Oriental tobacco is thus supple-
mentarv to, rather than competitive with, domestic to-
baccos.' The ])rice of the imported tobacco is substanti-
ally hiu^her than that of domestic tobaccos used for cig-
arettes. In 1937, for example, the landed duty-paid cost
of imported Oriental tobacco was approximately Hi
cents per pound, whereas the wholesale cost of domestic
ciijarettc tobaccos processed to a similar stap is esti-
mated to have been 34 cents per pound for hurley, 3b
cents per pound for flue cured, and 32 cents per pound
for Southern Maryland. Imports of cigarette leaf to-
bacco were valued at ti;2(),200,(M)0 in 1929, and at $24,-
7IM)(MK) in 1938. Turkev and Greece each supply
slightlv less than one-half of the imports and the small
remaining (luantitv comes chiefly from Bulgaria. Im-
ports of tobacco from Turkey were valued at $8,807,-
000 in 1937, and at $11,125,(MM) in 1938. In 1938, cigar-
ette leaf tobacco accounted for roughly three-fourths ot
the total import of all T)roducts from Turkey. The re-
duced rates granted to Turkey under this agreement
will also be applicable to Greece and Bulgaria, both ot
which are entitle<l to most-favored-nation treatment
under existing treaties. •

E('ArSP3 the imported licorice root is used
chieflv in the making of licorice extract for fla-
voring tobaccos, the industry and trade are also
interested in the reduction of the Ignited States
(lutv on licorice extract, and the binding of licorice root
„n the free list. The dutv on licorice extract is reduced
from 20 per cent, ad valorem to 15 per c^nt. Licorice
root was placed on the free list under the Act of 1930;
previouslv it was dutiable at one half cent per pound
(e<iuivalent to approximately 20 per cent, ad valorem)
under the Act of 1922, and one-fourth cent per pound
under the Act of 1913. Licorice root is not produced in
the Tnited States. Imports of root, chiefly trom iur-
kev and the Soviet Union averaged 32,1(K) short tons an-
miallv from 1925 to 1929, and 28,(KK) short tons annually
(valued at $1,1(K),(KM» annually) from 1931 to 193/. The
averan-e annual domestic production of licorice extract
i^ Pstiniated, on the basis of imports of root, at roughly
11 (HK) short tons from 1931 to 1937. Of this amount
over 1000 short tons, on the average, are exported an-
nuallv to i^anada and the United Kingdom. Imports of
licorice extract are considerably smaller than these ex-
T>orts; thev averaged 590 short tons annually from 192o
to 1929, and declined to 490 tons in 1933, to 181 tons in
1938 The new agreement also provides for a reduc-
tion of the dutv on crude meerschaum, now 2i) per cent,
ad valorem, to 10 per cent, ad valorem.

Copyrigbt 1939, LiOGrrT & MYERS Tobacco Co.

„ , „ ,,.„k»„, Pr*.ident and Treasurer; B. S. Phillips, Vtce-Pretident; John Cleary,

T.. TOBACO. WORLD C....-.U.^^U..;;b;Tb^^ ;--. „,, ,„ .,„„ „_, .n ... .ol,.c» i„.u«._,,j™.^J1.0. .^,»..

Secretary. Oince, 2* Cneitont 3m»»*» *oi»"u»: i ,

IS c«iu • c^>; lonil", »1» > T~r. I-»«"<1 " •«•»''■«"••

z":i; J."'.j:.';«i:" V'»: .: .". p;;. o«;.. ^n.d.i^.i., p... u»d„ ... a.. .. -..1. 3. «,.

Season Tobacco Demand Unchanged

March Registers Another Tobacco Gain

111'] uviu'i-al (U'lnaud situation for all types of
tohaei'o in l!)o!)-40 i)rohal)ly will not be ui'^'Jitly
different from that of IIK^S-.'J!), says the Bureau
of Aurieultural Heononiies. The large 19^9
aereasie imlieated l>y Mareh 1 prospective ])hintini»s.
however, may leatl to a siiiiiitieant iiuMcase in i)ro(luc-
tion of some tyi)es, partieuhirly thu' cured.

Flue-cured tobacco acreauc in 1!>.''5) will total
J)9(),4(H) acres if growers increase acreage by 11 per
cent, over 1JKS8, as indicati'd bv March 1 ])rosptH*tive
plantings. AVith l!i;]2-:u; average yields, the liKJi) crop
would be slightly smaller than the estimated i)ro(luc-
tion of 7S() million pounds, the past year. With a
yield equal to l!K»S, however, the indicated area for
1939 would produce a i-rop of ST'J million i)ounds.

The demand for tlue-eured tobacco in l!K)!)-4()
]n*obably will not be greatly dilTerent from that of
19,')S-.'>9. Prospects for stable «»r moderately im])i*oved
general business conditions throughout the renuun<ler
of 19o9 make it i»ro)»able that cigai'ette consumption
will be maintained at its jiresent high level. Stocks of
United States flue cured in Kuiope are the largest on
record and juoduction witliin the British Kmiiire is
increasing, but the total consmnption of tlue-cured leaf
in cigarettes and light smokinu blends continues to
expand.

Prosjiectivi' plantings as of March 1 indicate a de-
cline (»f .'1.2 per cent, in Builey toba<'co acreage in 19.*>9
as compared with VX\S. Assuming five-y(»ar average
yields, the crop would be about .'J24 million pounds
compared with the picsent estimate of .'IM.') million
jmunds for 19MS. Stocks on Octobei- 1, 19.")9, are ex-
pected to show a slight increase ovei- a yt'ar earlier.
A large proportion of the total production the ]>ast

season consisted of tobacco of the snnjking grades
which brought much lower prices, relative to tobacco
on the heavy side, than in previous years. In view of
the outlook for the same or a slightly larger domestic
consumption of cigarettes and smoking mixtures, the
demand for the 19.*>9 l^urley crop is ex])ected to be
about the same as that for the 1!>.")S protluction.

Xo change is indicated in the aiea of Maryland
tol)acco for 19:19 lelative to 193H. The 1937 crop* sold
in 193(S, brought a considerably lower price than that
of 19.*Ui. Plans aic being made to sell part of the 1938
crop on loose leaf auction floojs.

Prospective plantings as of .March 1 indicate de-
clines of 12 per cent, in the acreage of (ire-cured and
11 jier cent, in (hiik idr-cured tobaccos. With average
yields pei- acre, tlu' 1939 ci(»ps would be about the
same as the recoid low pi'oducti<»n of 1938, Demand
for and disappearance of dark tobaci'os probably will
continue theii- downward tren<l. Total supplies prob-
ably will be even smaller in 193!l-40 than in the present
season, and it is i-eas(»nable t«» believe that the average
(pnilitv of the crop will be al)ove that of this vear.

Lai-ger acMeages are in prospect, in 193)!), for tiller,
binder and wrap|>er groups of cigar tobacco. With
1932-3(1 average yiehls, crops w«Mild be somewhat
larger than in 1!).'>8. .\s a result of smalh-r prospective
stocks of filler and wrapper on October 1, however,
total sup]>lies of tillei- would be less and of biinh'r and
\vra|>|H'r oidy slightly larger in 193!)-4n than in 1!»:)8-
39. Tax-paid withdiawals of large cigais showed a
small decrease in the calendai- yeai- 1938 relative to
1937. In recent months withdrawals have risen
slightly above the levels of a yeai' earlier, and total
withdrawals in 19.3!> probably will be above those of the
luecedinu v{'ar.

World

UK exhibition building of The American To-
bacco Comiianv, featuring Luckv Strike Ciirar-
ettes, will permit visit<»r> to >ee cigarettes ac-
tually l)eing made an<l packed. The entire front
of th<' building will lie a plate glass window, directly
behind which will be the cigarette machinery, jiermit-
ting even passersby to witness the operati(m. The
function of the>e machines will be >npervi'<ed by a
specially t mined and selected gnuip of men and girls
from The American Tobacco Company factories.

hntering the building:, the visitor will be able to
visualize tin* complete .ntory of tobacco and Lucky
Strike. This will be accomplished in part by a set of
six colorful (lioranias, set into the semi-circular hack-
wall of the building. The dioramas depict, l)y means of
ininiature figures in natural cohir. the stejjs in the rais-
ing, curing and marketing of tobacco. The.se dioramas
are most intereatiiig, us they are actual figures and not
paintings.

The first diorama >hows the tobacco fanner pre-
})aring his .seed bed; the next will show him at work in
the tobacco field; the third, the i)roeess of curing the
tobacco; the fourth, the fanner bringing his tobacco
into the \yarehouse to be auctioned ofT, the fifth, the ac-
tual auction, and the last, the toliacco being put away
to age.

Also in the back-wall will l>e two frames, in one of
which will be displayed the various types of tobacco

which go into a Lucky Strike Cigarette, together with
maps which will «'nab|e the visitor to see wln're the
(lilTerent types <if tobacco are grown. The other will
fe.Mture the important research work the company ia
doing on tobacco.

The>e exhibits are arranged on eitfier side of a
goo<l si'/A' stag<», in which has i»een installed a translux
movi.' screen which will show, at fretpieiit intervals, the
many .steps in the making of a cigarette, beginning at
the tobacco auctions and ending when the cigarettes are
re.uly for the consumer. In short, upon leaving the
building, the visitor will have witne^^.-d the story of
Lucky Strike from "seed to cigarette."

As a souvenir for visitors The .\merican Tol»acco
t'oiripany has prepare<i a special World's Fair <'dition
«»f a book entitled **The Story of Lucky ^Jtrike," writ-
ten by h*oy ('. Flaiinagan, a Virginia newspaper com-
nH'utator. In this one Inmdred page cloth bound book
is traced the story of tobacco from its early history to
the present time, ami takes the reader on a word pic-
tun- trip of the tobacco fields, the curing barns, the auc-
tion WHrehouses, an<l sums up the entire operation be-
hind the manufacture of the tiuished product.

Thus, the visitor not only will see with his own
eyes liow the modein <'igarette is made but will carry
away with him a valuable souvenir which he nmy add to
his librarv.

The Tobacco World

Class A, However, Accounted for Entire

Increase in Cigars; Large Cigars and
Manufactured Tobacco Alone Declined

LIj classes of tobacco products, except large cig-
arettes and manufactured tobacco, are repre-
sented by plus signs in tlie March rejiort of
withdrawals for consumption, as released in the
supplement to the ''Tol)acco P,arometer" issued by the
Tobace(» Merchants Ass(.ciation of the I nited States.
The increases were all small, however, covering only
the limited nmge from l.:>7 pvv cent, for all classes (d
Ignited States cigara combiiied to 3,.7(; ix-r cent, tor cig-
arettes.

\mon" the cigars. Class A alone accounted for the
entire gain. The t(.tal of :J98,19(M;7r) compared with
389,1()3?4()0 in .March, 1!>;58, an increase of 9,(>i)3 21.), or
'> 34 per cent. This gain grew to 11,81 LolO, or 2.91 per
cent by a sales climl) of the Philippine Islands product
from' l(),113,r)r)U to 18,891,r)9r) (which was 2,n8,()4o, or
17.24 per cent, more than last year) counteracting a de-
cline of r)9,7r)() in Puerto Hico withdrawals. T()tal Class
A withdrawals thus were 417,Bib,17(i, as agamst 4().),-
294,G(U).

Class B cigars showed a loss of 27.0(5 per cent, in
the United States, the total being 2,ir>H,7()3, as compared
with 4,33<),3!I3. Philippine withdrawals wer<' negligible
both vears, but the gnind total in this cla>s got a^slight
boost from a Puerto Hico increase from 11,.*UK) to 32,01K).

The Class P» total was 3,P)4,10r), as com])ared with 4,-
.*>4r.,()l(), a decrease of l,ir)l,9<)4, or 2b.r) per cent.

Cnited States withdrawals in Class C totaled 33,-
71(M)8(), as compared with M.").! 124,772, a decline of 1,3>14,-
(;!>2, or .'5.7.') i)er cent. This loss was made greater by
Puerto Kico falling down to the tune of 27,600, render-
ing the Philii)pines improvement of 7082 ineffectual.
TJie total was 3)3),7(;2,722, as compared with 3."),097,932.

Class 1) cigars in the Cnited States receded 693,-
662, or 2.3. 2S per cent, from the March, 1938, figure of
2,980,000, and while there were slight increases of the
Philippines and Puerto Hico withdrawals, the (juantity
in each instance was so small that the result was not

atTectetl.

Class K was 1!>,708, or 7.82 per cent, behind.

Total for all classes shows C. S. .■),893,36.3, or 1.37
per cent. ahea<l ; P. 1. 2,7s.V5i>^^ or 17.24 per cent, ahead;
P. H. 66,1.')0 lichind, <'merging with the grand total of
4.')6,.')88,73(), as compared with 447,97.'),83U, an increase
of 8,tn 2,906, or 1.92 ]»er cent.

Cigarettes totaleil 14,243,656,930, a gain of 515,-
5.37,61'7, or 3.76 per cent.

Little cigars w<'re up 0.82 iter cent.; large cigar-
ettes, down 32.44 per cent; snuff, U]j 3.55 per cent.;
manufactured tobacco, down 4.75 ])er cent.
P'ollowing are the comparative figures:

Product
Cigars :
Class A —

United Slates

I'hilippiiie Ihlaiuls ...
I'uerto Kico

March, 1939

.V>8. 196,675 -H

18,891,.S9.S -f

17,900 —

Increase or Decreate
Quantity Per Cent.

9,093.215 * 2.34

2,778,045 17.24

59,750

Product

Total All Classes:

I iiitfd Statr->

Philippine I>laiiih .
Puerto Hico

Urand 'r«>tal ....

Little Ciffarst

rintt'l .'^tatts

I'hilippine Islands .
Puerto Hito

Total

Ligarcttes:

United States

Philippine Islands .
Puerto Rico . .

Ti.tal

l.ark'e Cigarettes:

Inited States

Philippine Islands .
Puerto Rico

Total

SmiflF (Ibs.'t:

All riiited .States

Tobacco (Chewing and

Smoking) lbs.:

I 'nited States

Philippine Islands

Total

March, 1939

. 437.584,196 +

18.940,390 +

04,150 —

. 456,588.736 -|-

Quantity Pei
Increase or De

5.893,363

2,785,693

66,150

8,612,906
128,973

rCent.
crease

1.37
17.24

• ■ ■ •

1.92

Total

417.106,170 +

11,811,510 2.91

15.762,973 -|-

Class B—

United States .......

Philippine Islands . . .
Pmrto Rteo

3,158.703 —

3.403 —

32,000 +

1,171,790 27.0<3
814
M,700

0.82

• ■ • •
■ • • ■

15,762.973 4-

128,973

515,537.697
64.450
64.280

515.666,427
85,147

* 5,w6

0.82

Total

.>,194.106 —

1,151.904 26.50

.. 14.243,656.930 -|-

85,150 -H

030,000 +

C lass C—

United State*

33,710,080 —
38.892 +
13,750 —

l,314,f.92 3.75
7.082

27, mo

• • • *
« ■ ■ *

Philippine Islands . . .
Puerto Rico

.. 14.244,372.080 -f

3.76

rt»tal

33,762,722 —

J.J:-.33« —

<..5«»0 -H
500 +

1,335,210 3.80

167.7W) —

!! '20,666 —

33.68
26.66

Class D—

W3.fi62 2J.a
1.400
500

United States

Philippine Islands . . .

187.700 —

90,147

32.44

Ptwrto Rico

.1.578,753 +

122,798

1,296,468
42

Total

2.293,338 —

691.762 23.17

3.55

Clasi E—

United States .......

Philippine Islands . . .
Puerto Rico

232,400 —

19,708 7.82
20 ....

26,014,916 —

4.75

■ « * •

Total .............

232,4<K) —

19,728 7.82

26.014.916 —

1.296,510

4.75

■ti

^fay. t9S9

Small Gains Mark 9 Month's Record

Little Cigars and Large Cigarettes Fail to

Share in Rise of Tobacco Withdrawals

During First Three Fiscal Quarters

IGARS, cigarettes, sniiiT and iiiaiiufactiired to-
bacco reiiistered i^aiiis, little ci.u:ars and lari>:e
citrarcttes rciristeied losses, in withdrawals for
cimsnniption in the first nine months of the
fiscal vear, accordinir to the su])])lenient to the "io-
bacco Barometer" of the Tobacco Merchants Associa-
tion of the United States. The ci-ar and ci.irarette iii-
creases, however, were less than 1 per cent. ; the snutt
and manufactured tobacco gains were less than 3 per
cent.; the losses in large cigarettes and little cigars
were more than 15 per cent.

There was a grand total of 4,0r)0,()r)7jr)8 cigars of
all classes, as compared with 4,()37,()44, an increase of
0.31 per cent. Of the total, 3,9()8,40r),272 were the I . S.
product, as compared with 3,873,787,758, a gain of 0.89
per cent. The P. I. total was 8.78 per cent. olT, and the
P. R. total 8,()97,245 behind.

Of the U. S. total of cigars, 3,40(;,9<l2,(ilK) were in
Class A. These compare with 3,3<K),8()(),73(), a growth
of 2.25 per cent. The P. I. and P. R. withdrawals were
both under last year, bringing the net gain down to l.o4
per cent.

Class B total in the U. S. was 35,939,586, as com-
pared with 3,390,866,730, a decline of 13.54 per cent.
Again the P. I. and P. R. withdrawals also slumped, so
that the total decrease was 14.35 per cent.

Product

Cigars :
Class A—

United States

Philippine Islands .
Puerto Rico

Total

Class B—

United States

Philippine Islands .
Puerto Rico

Total

Class C —

United States

PhiHppinc Islands .
Puerto Rico

Totftl

Class D —

United States

PhiUppine Islands .
Puerto Rico

Total

Class E —

United SUtes

Philippine Islands
Puerto Rico

ToUl

6

All but 2 per cent, of the decline in Class C was m
U S. cigars. Their total was 374,!)46,7(M), as compared
with 407,441,024, or 7.98 per cent otf. This was in-
creased to an 8 per cent, decline by the decreases in the
P. I. and P. R. withdrawals.

There was a loss of nearlv 10 per cent, in Class D.
The r. S. total was 27,159,990, as compared with 30,-
043,848, or 9.6 per cent, lower than last year. The P. 1.
and 1*. R. performances raised this loss to 9.95 per cent.,
even though the P. R. figure of 3800 was a complete
gain.

Class E cigars in the U. S. totaled 3,36(5,306, as
compared with 3,866,144, a drop of 12.93 per cent. A
gain in P. i. withdrawals reduced this loss to 12.29 per
cent.

Cigarettes in the U. S. totaled 123,700,975,094, as
compared with 122,809,301,352, a gain of 0.73 per cent.,
a figure which was not changed by a P. 1. increase of
1,209,267 and a P. R. decline of 357,220.

Little cigars were 15.94 per cent, off, while large
cigarettes w^ere 15.46 per cent. otT.

Snuff registered an increase of 2.74 per cent^, while
the chewing and smoking tobacco total of 227,765,850,
represented a gain of 2.39 ])er cent.

Following are the nine months' figures:

1st 9 Months
Fiscal Yr. 1939

. 3,466.992,690

. 139,834,585

714,830

+
+

+
+

Increase or
Quantity 1

76,125,960

13,138,710

8,365,795

54,621,455

5,630,426
223,104

196,850

6,050,380

32,494.324

25.606

138,400

Decrease
Per Cent,

2.25
8.59

m m • •

Product

Total All Classes:

United States

I'hihppine Islands .
Puerto Rico

Grand Total . . . .

Little Cigars:

United States

Philippine Islands .
l»uerto Rico . .

ToUl

Cigarettes:

United States

Pliilippine Islands .
Puerto Rico

Total

Large Cigarettes:

United States

Philippine Islands
Puerto Rico

Total

Snuff (lbs.):

All United States .

Tobacco (Chewing and

Smoking) lbs.:

United States

Philippine Islands

Total

Ist 9 Months
Fiscal Yr. 1939

.. 3,908,405,272

140,388,007

1,264,480

.. 4,050,057,759
119,131,90<.

+
+

+
+

+

m

+
+

+

Increase or '.
Quantity I

34.617,514

13,50<j.831

8,697,245

12.413,438

21,798,623

796,680

22,595,303

891,673,742

1,2<J9,267

357,220

Decrease
>er Cent.

0J9

8.78

• • • •

0.31

.. 3,607,542,105

1.54

15.47

• • « •

• • * •

35,9»,5W

13.54

« ■ ■ •
■ • • •

73,313
102,250

.. 119,131,906

15.94

36,115,149

14.35

..123.700.975.094
1.652.77U
3,282,580

0.73

• • • •

• • * •

374.94<>.700

7.98

• ■ • •

242,378
443,600

..123,705.910,444

1,923.457

1,121

»)6,261

892,925,7W

392,861

100

3.161

389,600
765,869

5,312,756
99

5,312,855

0.73 1

16.96 J

* * * * ^1

1.56 i

. . 375,632,678

32,658,330

2.883,858

143,574

3,800

3,023,632

499,838
24,163

8.00

9M

• ■ * *

a ■ • •

27,l5v,990
207,8(i8

2,130,839
28,693,866

. . . 227,765,850
153

15.46 1

3,800

2.74 1

27.371.658

9.95

3.366,306
29,863

12.93

• • • •

• • • •

2.39

• ■ • •

3,3%,169

475,675

12.29

. . . 227,766,(W3

2.39 1

I'M A STEADY
CAMEL SMOKER
FROM 'WAY BACK-

THEY'VE GOT
MILDNESS AND GOOD
TASTE, TOO!

. V -* _ ^

'-•^&d!-

c*»we<.

\l

n'JUIB« If tKmtSTH:
BL£MP

FOR SMOKING PLEASURE AT ITS BEST.

u

POPULAR JIMMY FOXX-winner of the
V)}s AuRricin l.iauiK- l>.itting crown, voted
thi most valuable player in the League last
year -greets the !''>'> baseball season with a
confident smile and a Camel! Camels rate
high with jimmy. "1 gave a lot of thought to
the subject of cigarettes -made experiments
too-before I settled down to Camels for
keep*! Camels are better tasting- and they're
mihler." He curious enough to try Camels
yourself. Smoke six p.icks-and you'll see
^sh^ t^imels are. the most popular cigarette
in the world. .\ppe.iling flavor- pleasing
aroma-call it what you w,ll. but there's no
mistaking the fact that Camels give the su-
preme thrill of smoking pleasure at its best.

r<*.w«*C*.Wl

,11. C

UP_ LIGHT UP A ^MEL^

Tkt Tobacco World

Stay, 1939

NEW WHITE OWL MAKES BOW

m: (JKXKKAL rUJAK CO., 1X(\, has just aii-
iiouiR'od a new cigar, bleiulod with a generous
projiortion of fine Havana, in a newly dressed
box, wliieh will make its apea ranee with the
trade gencrallv on or about May 10th. It will be otU-red
under the AVhi'te Owl trade-mark liei-anse of the reputa-
tion and consumer acceptance which have made the
name famous since it was first advertised from Coast to
Coast 22 years aii«). The new cigar is lejtorted to be
the culmination of ])ainstaking and hdmrious experi-
ments with Havana bhMids by the leaf and manutac-
turing experts of the (Jeneral Cigar Co., Inc., which
lastt'd over a year. . ^ • i.

it was diseovered, after the hrst few experiments
were made, that it woiUd be necessary \o devise a new
methiul of haiuUin- and curing the domestic hller.

The new eiuar will be available in two shapes. In-
vincible and Chib House. Thus in addition to the na-
tionwide following which the Invincible shape l»as eii-
i„ved for manv vears, the additiim of the new ( lub
ilouse shape is destined to attract thousands o new
consumers. In other words, tlu' new White ( Jwl with
its new nationallv poimlar shaiH's, will appeal to and
V\vi\-r all classes" of nickel smokers. It is emphasized
that both the Invineible and Hub House shapes are
identical in their Havana l)lend.

Betitting this new eigar is the new dress ot the l)OX
itself Adorned with a new inside lal)el and outside
wrappimi, the ai)i)eal of tlie new cigar under the White
Owl nam.- i- eonsideral»lv enhanced in its attraetive-
lu-ss to the .'ve, and to the appetite in ])articular The
duplex pat-kiiiLi containing 2o each Invincible and Club
House, is desigmd purely for a quick consumer intro-
duction of these two new eigars. Each (d' these shapes;
will, of course, be available in the regular 1 l20th jmck-
ing as well as in a n«'W live i)ack carton and container.

The exreutivi- <>f the General Cigar Co., Inc., ar6
eonli«lent that the sul)staiitially inereased cost which
the new l)lended-with-IIavana cigar will obviously en-
tail, will be nuo-e than compensated l)y a tremendous
increase in volume.

PUERTO RICAN INDUSTRY

K.SLLTkS ot a study of the Puerto Ricau t(»l)acco
industry, reported by the I'nited States De-
j ])artment of Agriculture, call particular atten-
tion to the need by growers for various im-
provements in the marketing system. The report is
by Charles B. Oapre, of the Bureau of Apfrienltural
Economics, who recently completed the study. Puerto
Rican agriculture is devoted largely to the production
of cash cro])s for export. Tobacco, which ranks second
in importance among the crops pro<luced on the island,
is used almost exclusively for cigar-fdler. It is pro-
duced nuiinly in the valleys and on hillsides of the
mountainous interior of the island. The principal mar-
ket is the cigar industry of the States.

A fundamental weakness in the marketing system,
the report states, is the lack of suitable production
credit facilities open to the small growers. Large de-
pendence, therefore, is placed on a class «>f intermedi-
aries known as refaccionistas. These men, many of
them local merchants, advance production credit in the
form of food and fertilizer, and in return require deliv-
ery of the tobacco produced.

The refaccionistas weigh and grade the tobacco,
ferment and finally sell the tobacco or buy it themselves.
The account with the grower is liquidated after deduc-
tions are made for goods sold, interest, and handling
costs. While it is ])ointed out in the report that re-
laecionlstas as a class may be serupulously honest in
their operations, the system i)laces in their hands undue
opportunities to make imj)roi)er exactions such as
eharging high interest rates and excessive prices for
goocis sold, and manipulating the grades ami weights to
tlieii- own advantage. Refaccionistas occu])y an in-
li-eiiclu'd position, (Jage says, because on the one hand,
many growers are dependent on them for i)roduction
credit, and on the other hand, dealers depend on them
as intermedia lit's between themselves and the growers.

Remedial suggestions advanced in the report in-
eluch' esiuH'ially a broadening of the credit sources
availabh' to growers, and official grading and weighing
of glowers' tobacco delivered to processors. The need
for a eomprehensive factual survey to determine the
charges now made upon growers is pointed out. Fur-
ihi-r strengthening of the present cooperative market-
ing association is advocated.

A few years ago the the cigar manufacturing in-
dustry flourished in Puerto Rico, with the States tak-
ing routihly two-thirds of the output. This industry
has (lwindle<l to relatively small pro])ortions, and now
most of the tobacco is ])urchased by dealers and manu-
facturers (ui the mainland. American style blended
{•igaiM'ttcs have almost comjiletely supplanted those
made in Puerto Rican factories with domestic tobacco.
It is suggested that manufacturers in the States may be
in b( tter )»osition than the island iudustrv to promote
the use of l*uerto Rican filh'r tobacco, which should
work to the advantage of the island growers.

The re])ort has been published as I'uited States
De])artment of Agriculture Circular 510, entitled '*The
Tol)acco Industry in Puerto Rico." The circular is ob-
tainable for 10 cents a co])y from the Superintendent of
Docnnuents, (lovernment Printing Office, Washington,
D. C.

v.mi

WESTERN NATD CONVENTION

HE sj»ecial Western X.A.T.D. Convention will
be lu'ld at the St. Francis Hotel, San Francisco,
Calif., Saturday, June 10 and Sunday, June 11,

Following its last noteworthy convention, the
X.A.T.D. has been imiiortuned by <listributors in vari-
ous areas to arrange regional meetings and thus ap-
prise the members of the industry of the jirogram
adopted at the convention. While such a course would
be most desirable, due, however, to the countless de-
tails attached to such meetings, the X.A.T.D. was im-
pelled to defer it for the time being. The requests
from the Western distributors, however, have lM?en
overwhelming and coupled with the realization that the
distances involved preclude a considerable number of
the members of the industry from attending an annual
convention, it was decided to hold this special western
meeting.

It will consist of the distributors from the follow-
ing States: Washington, Oregon, California, Nevada,
Arizona, New Mexico, Idaho, Wyoming, Montana,
I'tah, portions of Colorado and Texas. Several na-
tional officers are planning to attend this meeting. The
California director, Sylvian Mirsky, of B. Mirsky &
Son, San Francisco, and the X^A.T.D. representative,
Leo Shapiro, are in charge of the arrangements.

Th* Tobacco World

^^iM»'

i:ll

iiHinnT

^MmiMiiiiiiuiiHmiiiiiiiiiniiii,||iniii,i,„||,,,,„,„,,,,;^
LUCKY STRIKE CICARtTTES

.is

Have a Look at LUCKIES
in the Making

... at the New York World's

Fair exhibit! See every step

"from seed to cigarette"!

To a tobacco man, the higli i>oint of the
New York World's Fair i^ tlir only build-
ing representing cigarettes- the AmericaB
Tobacct*Compan> '» buildiug...aud_)rouVe

mvUmJL to visit it.

It'i your chance lo see Luckies actually
being made-|»ouring in an endless stream
from big,ino«lern machines brought from
one of our factories, with a skilled crew
in charge.

Manv other interesting exhibits, too
. . .showing the "life of a Luckv* from
seed to cigarette. By all means visit the
Luck% Strike Exhibit at the New York
World's Fair.

J^jHi

iMCOn^'^^^* * t Q

C€4

ctn/rHXtW'

/ ^

CopyHght 19S». The Anwriewi T«*««eo QHmwn?

A/oy. /9J9

STREAMUNE
2 FOR 25c

What Size, Please?

10c^2 for 25c and up

C. H.P.aGARCO.,INC.,PHILA.,PA.

POPULAR LEADERS

By P. Loriliard Co

BEECH-NUT

LEADER

to build
a profitable
high-grade
business/

r real enjoyment

ELPIfflaO

STARTS 5TH YEAR ON AIR.

United States Tobacco Com]jany, whose half-hour
M'lit's for Model and Dill's Best is a model for consist-
ent broadcasting:, opens its fifth year on Columbia, May
LMMh, with th<* larjjrest network it has ever used. U. S.
Tobacco moved *4'ick and Pat" to CBS in May, 1935,
and has been heard on Columbia stations coast to coast
I'very Monday night at H..3n P. ]\I. ever since. With
each successive renewal, more stations have been
addt'd; the present contract calls for 54, five more than
la-t year. Karly in VXV.^ '*Pick and Pat" were re-
placed as headline talent by Tom Howard and (leorge
Shelton. The prosj:ram is entitled ** Model Minstrels,"
and presents the Kton Boys and Kay Bloch's orchestra
in addition to Howard and Shelton. Arthur Kudner,
Inc., is the advertising: agency.

VAN

BIBBER

5 for \(k

SENSATION
20 for 10*

BETWEEN THE ACTS

10

FRED WARING AT 7.00 P. ^

Beginning June 19th, the Liggett & Myers Tobacco
Company will present Fred Waring and his orchestra
fi%*e nights a week over 82 stations of the NBC-Red net-
work, the largest station line-up ever to broadcast a
Chesterfield show, according to the terms of the con-
tract signed with the National Broadcasting Company
by the Newell-Emmett agency. The j)rogram will be
heard Mondavs through Fridavs from 7.00 to 7.15
P. M., EDST, with a repeat at IIM P. M., EDST. With
the broadcasting of Fred Waring *s music at 7.00 P. M.,
Ligett & Myers will lie establishing a new precedent of
I)rogramming for that time of day. Heretofore the time
has been utilized almost wiiolly for dramatic serials.

Th* Tobacco WofU

C:ipar§ are ihe
..losipteMurable
,,„a economical
roriiiofsnioking.

fnst Issued 1929

BAYUK BULLETIN

Devoted to the
best iiilereslB
of the men who
gell ci}»ar8.

PHULOFAX

{The Retailer^s Friend)

SAYS ,

He wants a promotion
and yet a trade paper or
a "business book" is just
so much dead language
to him.

Salesman: That's the sit-
uation — what do you

think I should do about it?

c; lesmcrt What do you think you

Iv.i.uld do?

Faksman: I don't know— that's why

I'm asking you.

R4T.ESMAN: That's the situation
an«i I've recommended what I thmk
.vi- should do— what's your advice?

Sulesmgr: You give rlenty evidence
of knowincT what the problem is and
plenty evidence, too, of >»w to answer
it . . . I'm willing to abide by your
judgement!

There IS a difference between a
salesman and a SALESMAN!!

T. L. K. writes,— "I never realized
that so many cigars can be sold by
the box until I went a/}ej box
business. Last Saturday I sold 6 boxes
of cigars."

You're right T. L. K. The way to
get business is to go after business
cigars by the box can be sold
365 days of the year.

"Procrastination is the thief of time"
—and it doesn't catch orders, either.

P R. T. wants Phil to settle this
,;^^er — "I bet a fellow salesman
that it is better to ask a .fealer 'do you
n«^ anything else' than it is 'do you
want anything else'. Who is nghtT

Phil thinks "need" is better but why
ask? Why not politely suggest or
recommend ?

"If you mm IFilfc your House for
any particular reason, be For your
House for every possible reason.

Prcpiiri'd ttiicp a month

"SALES-DOGGLING"

or How Not to Sell— No. 37

otto has a Uttle gab-fest ^ith his fellow salesman. Will
Getahead. on a vitally important factor in a salesman s success.

WILL: Well, Otto, old boy, how's
tricks ?

OTTO: Not so hot, Will, not so
hot.

WILL: What's wrong. Otto?
r.usiness is getting better and
to a salesman nothing is so ter-
ribly wrong that orders won't
cure !

OTTO: That's just it ... 1 don't
pull enough orders and maybe
the Boss is halfway right any-
how in crabbing at me.

WILL: How many did you get
yesterday ?

then you say you can make time.
What do you mean?

*'It is written in the Book of Kx-
perience that many a Good Product
has Iwen ignominimisly tumetl down
because its resalability meriU were
not intelligently talked up — Know
Your Product!"

"Self-Development is the stimulus
to Self-Success, and you can't stand
still in your greed to feed your mental
machinery for the better the mind,
the bigger the order."

(From Frank Trufax)

OTTO: Gad. Will. I only got 12
orders yesterday.

WILL: 12 orders? Ye gods. man.
what did you d(v— knock off be-
fore noontime?

WILL: Well. I mean you can't
stretch the number of hours in
a (lay but you can take time to
make time by not wasting time.

OTTO: I don't waste time but
some of my trade does hold me
up. Li -ten— yesterday I was in
John June-' store and his store
was crowded with customers . . .
I had to wait over an hour before
1 irot to see him.

WILL: Why did you have to
wait? You ^rot four other cus-
tomers right in .John Jones'
block. Why difhi't you tell Mr.
Jones you'd le back in an hour
and then use that hour to call
on the four other customers?

have to wait around those rest-
aurants until the rush is over!

WILL: Once again, Otto, why
work them between 11:30 and 1
o'clock? Why not re-route your
calls so that you'll hit them, say
before 10 A. M. or after 3 P. M.
Couldn't that be done. Otto? I
used to do it when I had your
route.

OTTO: Guess you're right ... I
didn't take time to figure that
out !

WILL: Here's one more friendly
question. Otto. What time do
you call on Sam Smith?

OTTO: I get there every two
weeks around four o'clock and
nine times out of ten only Sam's
clerk is on duty and he can't
place orders.

WILL: What time does Sam
come on the job?

OTTO: He gets in alwut 4:30 or
quarter to five and then I have
three or four calls to make after
that.

WILL: Well, why in the name

of sense, don't you make those
calls first and then wind up at
Sam Smith's store? You know
he won't be there until 4:30 to
quarter of 5.

OTTO: Maybe I didn't take the
time to think of it.

WILL: ''Maybe you didn't take
I he time?" Why doggone your
hide, you KNOW you didn't take
the time. You chatter you
•'haven't got the time". What
vou've got to do is not to
WASTE time. What you've got
to do is to take time to figure
out how to make time and then
you'll have all the time you
'want. Right. Otto?

OTTO: Sure, you're right* Now
wlien I have to have more time,
I'm going to take time to make

titne^ I'm gointr to be a TIME

MANTTACTUIIER.

(7i^

I). B. i.

iwlfMm-Mmkmn •/ /tmm 0^mn itaw 1997.

OTTO: No. really I didn't. I put

in a real full day but I just didn't

have the time to get any more

orders.

WILL: What do you mean that

you "didn't have the time" ? You

have as much time as any of the

rest of us. You can't make time

and yet again you can make

time,

CnrO: You're bugs, Will. First

you say you can't make time —

OTrO: T never took the time
to think of doing that. W^ll.

WILL: Oh. Otto, you said it.
You know. Otto. 1 used to work
your route^ — now let me ask you
when do you work those three
restaurants you have on No. 8
route.

OTTO: Well. I hit up with them
each trip between 11:30 and 1
o'clock and cripea. maybe I don't

WILL: OK. Otto, and don't for-
get to buy and use some of the
time you make! So long, Otto-
Good Luck.

Phillies

(BAY! K PHIIADEI PHIA PEBFECTO)

Havana iniibon
Mnpiiniba

rJiarh-8 Thom
Prince

BAYIK »«AI»I»S BUILD

maon I
Hamlet I

BUSINESS I

NOW...FOUR EXTRA COUPONS

in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamson Tobacco Corporation

KING EDWARD

America's Largest Selling Cigar

A WHALE

o/ A PROFIT MAKER

lo.

DEALERS d? JOBBERS

SUMMERTIME IS TEN-PACK TIME

Fishermen, campers, golfers, etc., Iii<e the
handy Ten-pack with 10 big King Edwards
for a quarter. Push this popular item and
increase your unit sale.

JNO. H. SWISHER & SON, INC.

Cigar Manu/acmrrrs . . . JACKSONVILLE, FLORIDA

LAST CALL

TO RETAILERS

TO PROMOTE

FATHERS DAY,

JUNE 18!

UNION
MADE

U

LEAF TOBACCO STOCKS

srPPLKMEXTARY report on stocks of leaf
toliacc'o owned l)y manufacturers and dealers
on .January 1, 1931), was i.s.sued February 15.
But a revision has been found necessary. A
reclieck of thi' information received from manufactur-
cis and dealers showed that in some types consider-
al)le quantities of to])acco w^ere reported by manufac-
turers under dealer registries and had not been prop-
erly classified as manufacturer-owned stocks in the tab-
ulation.

In this revised report, showing stocks owned by
manufacturers and dealers sei)arately, the manufac-
turer-owned cates^ory includes all stocks owned by man-
ufacturers and lield under dealer registries operated
in tlif name of the manufacturer, and stocks held in
the luimes of others if such stocks are definitely known
to be owned bv a nuuiufacturer. Also included as man-
ufacturer stocks is tobacco held by dealer organiza-
tions ri'presenting foreign manufacturers or purchas-
ing on order for foreign manufacturers exclusively.

Apparently a report showing manufacturer and
dc'ak'r stocks separately fills a long-felt need in the
trade as numv favcnable comments have been received.
It is jilanned, therefore, to make a tabulation in this
form a regular part of the quarterly report on stocks
of leaf tobacco.

It may be found advisable at some later date to
make a still further ])reak-down on a group basis in
order to show the suital)ility of stocks in dealers* hands
for certain manufacturing purposes. For example, an
analysis show.s that of the total of $18,870,000 pounds
Type 41, Pennsylvania Seedleaf, owmed by dealers, a
little over 11 million pounds, or about 60 per cent.,
are l>inders and fillers, and about 7M» million pounds,
or 40 i»er cent., are stemming grades or lower. Of the
total of 61,621,0(X) jmunds of this type owned by man-
ufacturers, about 46 million pounds, or 75 per cent.,
are filler grades or better, and about 15^/| million
]>ounds, or 25 per cent., are stemming grades or lower.
An analysis of Type 52, Connecticut Havana Seed,
shows that of the 3,643,0<M) pounds owned by dealers,
about a quarter of a million pounds are of wrapper
quality, about .3 million pounds, or 82 per cent., bind-
ers, and the balance lower grades. Of the total of 21,-
068,(KMJ pounds of this type owned by manufacturers,
about a million and a half pounds are of wrapper qual-
ity, about 13 million pounds, or 62 per cent., binders,
aiid aliout 6M. million pounds, or 31 per cent., stem-
ming grades or lower.

ceo

^ /^

THAT POPULAR COMEDY TEAM OF RADIO. STAGE AND SCREEN

HOWARD s SHELTON

w^MODEL MINSTREL^

iVIMY MONDAY NIGHT
COASV VO COAST

CBS

ISII TOO! MIW»»AHt »01 lOCAl TIMI)

AIR CONDITIONING IN CURING

DOPTIOX of air conditioning by tobacco irrow-
ers has been ]>roposed here as a means of im-
])roving the quality of to])acco leaves and re-
ducing the present' costs of curing and drying
processes. In a talk before tlie American CheniH'al So-
ciety Professor Albert II. (V)oper, of the \ irginia
Polytechnic Institute described a new air conditioning
techni<pie which ]>romises to bring substantial econ-
omies to the tobacco growing industry.

''Today no definite rules are followed in the cur-
lUiT process," Professor (/ooper asserted. "Each
giH)wer enq)loys ceitain jn'ocedures liandccl down by
his predecessors, altered to suit his own ideas. Conse-
(piently, great losses of tobacco occur each year be-
cause of inefficient methods.''

Using carefully-controlled temijeratures, humidi-
ties, amrair veloc'ities, this investigator determined
that certain optinnim air conditions for each of the sev-
eral stages of drying and curing the tobacco leaf would
take the guesswork out of i)resent practices.

To make air conditioning practical for all growers
in a given territ(»ry, he suggested that the curing be
done^in large cooperatively-operated, air con«litioned
buildings, larger than jn-esent tobacco barns and read-
ily accessible to irrowers by motor truck.

Advantages claimed for the new method are (1)
a 50 to 60 per cent, reduction in time of curing and
drying, (2) uniform (|uality of tobacco without appre-
ciable loss, (3) elimination of stem greenness, which
often ruins tobacco, (4) considerable reduction in
labor and fuel requirements, (5) increased cai>acity of
barns as a result of shortened processing time, and
(6) reduction of fire hazards.

In the manufacturing divisiona of the tobacco in-
dustrj", air conditioning has for many years l>een ac-
cepted as almost imlis|K;nsable, .Htates William B. Hen-
derson, executive vice-presidcmt of the Air ('on<lition-
ing Manufacturers' Aasociation in Washington, I). C.
**Long before air conditioning was coniinoii in
theatres, n-staurants, stores, and ollices, the cigar and
cigarette manufacturers had air conditioned then-
plants in order to secure more uniform quality (»f prod-
uct and to maintain production schedules.

** Because tobacco leaves are unusually susceptible
to changes in air temperature and humidity, it is logical
that the benefits of artificial weather, through air con-
ditioning, can profitably be extended from the manu-
facturer to the grower of tobacco."

A/ay, jy39

Tom Howard says he'd go
*o almost any lengths for a
pipeful of Model — and h»
proves if when he lighfi
up this one, the daddy of
alt his 846 pipes I

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter - for the Eye
It's Lighter - for Shipping
It's Better - for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. I.

_JI

Ealahliihed 1886

'BEST OF THE BEST

99

M.,«f.c.ur,d b, ^ SANTAELLA & CO.

Office. 1181 Broadway. New York City

FACTORIES: Tampa and Ktp Wgst. Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-De sign-Cost

AUTOKRAFT BOX CORP.

l,ini». Ohio
Chicago, III.
Detroit. Mich.

Hellam, I'm.

Hanover, Pa.
Philadelphia. Pa.
Wbeelinc, W. Va.

a

Tobacco Merchants' Association

Tl • J. A* D ,«^^,, 341 Madison Ave.

Hegistration bureau, ^^ york city

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

Registration, (see Note A), $5.UU

Search, (see Note B), l.UU

Transfer, 2.UU

Duplicate Certificate, 2.00

j^-^jte A— An allowance of $3 will be made to inembert of the Tobacco Mer-
riiants' Absociatioii on each registiatinsi. ,

Note IJ— It a report on a seanh ..i a title necessitates the reporting of more
than ten (10) titles, but kss than t ^- '^ -' <-'i', an additional charge of One
Dollar (%IM) will be made. It it ii. c reporting (I iiK-rc than twenty

(20) titles, but less tnan thiity-.-nc Iditional ciiari;e » ' 1 ^o Dollar*

($2.tW) will be made arn! ^.^ au a.iditiuiial ch.aiKe ot One IJollar (Jl.W) will be
made for every ten (10) adiUtiuiial titles neccs&arily reported.

NEW REGISTRATIONS

FENCHURCH: — 46,724. I'or all ti.bacfi. luiuliut-. Ivi L;i>-tLreiI by
Crini-on C'oacli. Inc.. Tolcuo. ( )l;io, uii .\i>iil 1-. 1*'.>"'.

NEWMARKET: — 46,725. l\.r Miiokinc \n\n-, iiLaicttr hul.Urs and
slnokcr^■ artu U-. J-Ji ui-^U n -1 I-> li.'U-c ^t (-i.i'x. Inc. X^w
York, X. v., on MarJi JS. 1*'.><».

TRANSFERRED REGISTRATIONS

M. C. A.: — d". S. TMhac-'u Jmirnal). 1 .'r liL-n-. !-:< L;i-t<Ted May (..
188'.. hv M:.--acln!-ctt-> ('.i^i )pfraliv.- A— n. I^ -t.n, Ma— 'I'rans-
fcrrcd I r (iu::: ( llo-ttMi. M t.riR-

inal ri'iii-traul-, to >a:niu! ('. Sil\n. i .-t'Oi, Ma— , in iv..;u.iry

ONE HUNDRED & EIGHT (108):— il , ^. i 1' 1 «^r

liuai-. Kiui^tcrcd luh •" '■ ' ^' ,->arm; ■••ativr

\~-'i;. l;..-!..-. ^fa-. ■; -ilvrr < •■^t-.n.

M a-- . ~;m ' ■ uritrii' ' u\ c r,
BostL>n, Mass., on i turuary 17, 1 ' '

Internal Revenue Collections for March

Source of Revenue 1939 1938

Cigar- ? I.n51.nr.75 $ I.(i4-.,7168

Cigarettes 4J.7.U.51',.5n 41.; u4

Snuff <.44,175.(.6 6JJ.u81.s4

TobactxJ, chewing and Muukiim -^-''^--^^--^ 4,91a.1a7'?7

Ciffarctte papers ain! tubes 210,il.v./. •'^r.

1 .;.! .Ualer penalties -^" -'» 11«'J«

♦Manufactured Tobacco Produced by Classes

(.\- reiH.rlid by tin !' ' ' rnal ! ' d on

niamUaitui . : - , . im ■ - , -t juoir., > , ^

Month of January

Increase or Decrease

Product 1939 Quantity Per Cent.

I'luc 3,418.751 — .1(>7.8.,«) R.26

'J wivt V}i)fj,4 _ .^7.7"! 8.63

linc-dit Ciiewing '7\JH)2 + ^J 5.*>4

Scrap CluwitiLT ' '• '.<{) ^ i< ^ <^

SnuikiriK ' ' ' ^ H" '-

Total 2' ---OR + O.-006 3.87

Seven Months Ending January 31

Increase or Decrease

Product 1939 Quantity Per Cent.

Plup 31. IS — 1 ii'7.n'^^ 3 28

Twist — " '^•» l"-85

Fine-t— n. .. :.„ _ — "4 13,44

Scrap ' ^ 27 JC + 1 J :.80

Smoking 117,184. 5u4 + 9,14U.57« «.46

Total 181.203.093 14 4.76

♦The production fiKures are in r< " ■ on

imtil pnfilished in the annual report nal

R, vrmic.

Advertising consists in telling who you are,
where you are, and what you have to offer.

CIGAR BOXES

frtU^gSQl

6S7-64I CAST 17 VST.

OUR HIGH-GRADE NON-BVAPORATING

• IG4R FLAVORS ^ .. w .

Make tobacco lOisHow and smooth In charactart
and Impart a most palatable flavor

KlAVORS FOR SMOKING and CHEWING TOBACCO

Write lor List of Flavors lor Special Brands
HEri N ABOIiATizEE. BOX FLAVOKS. PASTE SWKETENBBa

f RIES 8k BRO., 92 Reode Street, New York

TOBACCO TRADE ORGANIZATIONS

TOBACCO MFRCIIANTS ASSOCIATION
OF UNITED STATES

-^^

1FSSE A. III.OC^II. Wheelini;. \V. Va .• ; ^ ^'"i^^^t^^l

WII.l lAM HKST. New V.nk. N Y Chairman Executive Coraniittee

M.\| nKoKCK W. ntl.I.. New York. N. Y Vice-Pre.ident

.;l nRCK 11 IllMMEIJ.. New York. N. Y v"p'"!^!II,

< (I AY WII 1 JAMS. Winsf.nSrilem. N. C JJi^*"? m!^

u I ir< I ICHTKNSTFIN. New York, N. Y Vice-Pretident

\»;A l.FMI.FIN. New York. N. Y ■. •■••;%; " J^* I I

(JIMaES DISMKIND. New York. N". V Counsel and Managing Director

llea.l.iiiaiter<i. M Madison Ave.. New York City

Till' N\TIOX.\L .ASSOCI.ATION OF TOBACCO

IMSTRIBUTORS. INC. ^ .^

M w r DWis. Raitimorp. M.l ;;: ■ •k''*''! . "!

n.%M \I) (■ DFARSTYNE. All.anv, N. Y •

mm- I'll KOlonS'^'. 2nn Fifth Ave.. New York. N. V

1. UKN7. EnsVARDS. Kansas City. Kan

X \Tiox \T. r,o \Rn of tob.\cco salesmen's

ASSOCIATIONS
HEN T T,A<:CtIOW. (V.2 Ea^t Fifteenth St.. Brooklyn. N. Y. .^. ......... Fretidenl

n I, Mccormick. 52 Klein Ave.. Trenton. N J ...First VicePreiident

T J 01 I FVnORFF -<«1 West End Ave.. New York. N. \ . ...Executive Secretary
ALBERT FREEMAN. 25 West Broadway. New York. N". Y Treasurer

TOBACCO SALKSMFN'S ASSOCIATION OF
AMERICA, INC.

VURY A. ABRAMS ■•• •■

I.EO RIEDERS. .WO Broadway. New York. N. V. .■•

lAi K FDFLSTEIN

.Vice-President

5>ecretary

Treasurer

President
J^ecretary
Treasurer

RETMT. TOBACrO DFALFRS OF AMERICA. INC

WmiAM A lUH-MNCSWORTII. 2U Broadway. New York. N. Y. ....Presi
LOII.S Kr.FIN »"'"' ^'*^*'^!1

ERIC CALAM1A
ARTIICR S MKVfU

dent
President
Secretary
Treasurer

CTC \R ^f \XUF\rTURFRS ASSOCIATION OF AMERICA,
IXC. 200 Fifth Ave . New York, N. Y. „ .^ .

A1.VA1 '. M r;NRCIA "Trel^

TlffiMA^ < fRFFN ■• 7/^ ^

'^NMIEI BI ' n C.eneral Coun»»l

i xTufive Co. Ah an. MCarcia (Ex-officio). Thomas C Br"", "■'^'ey W

leffer.on. U. Em.l Klein. Walter E. Topper. Harry S. Rothschild, Md Arthur

A. Schwarx.

Tin: YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION „ ,^ ,

n •' ( F r, NFniNGER. Red I.ion. Pa il! .!?;

< M FIIFIIAI.T. Red Uon, Pa ^iVifJl

A - /nr.I.ER. Red I.ion. Pa rre.surer

'4

TO RETAIN WHITEBIAN.

Thu J^iirp'tt iV: Mytin Tolmcco ('<)iii|)any has sipmi-
lU'tl its iiilcntion to cniitinu*' tho Paul Whitt'inan pro-
irrniii (WudiiL'Hdav.s H.3() to 9 P. M.) for tho full 52
wiek< of its present contract, thereby assurinir con-
timiaiicc of tho sorios throughout the suiiiiiu'F. White-
iiiiui is heard, foaturiuiT ChesterfleUl cigarettes, over 91
-latinii^ of Ww Columbia network. He has been broad-
a-1iim for I/iggett & Myers without interruption since
I). (M'nTbor 31, 1*>.''T. Tho company also sponsors a Fri-
day iiii;ht hnlf-hour starring (icorge Burns and Gracie
All. 11. Nowoll Kinmctt Co. is the advertising agency.

Th* T0bM€O World

(•

"^^ ^^ JUNE

^' «• Oeparfmerx ' 19 3 9

cf

V'cu/furt

ESTABLISHED
1881

426.000 CIGARETTES
LIGHTED EVERY MINUTE

April was by no means a record-break-
ing month for cigarettes; in fact, with-
drawals were 2 per cent, and a fraction
under those of April last year. Yet the
total of 12,270,201,024 amounted to 409,-
006,700 for each day of the month, in-
cluding Sundays. Counting sixteen wak-
ing hours in the day, this would mean
25,562,919 for each hour. And that, in
turn, can be expressed in the imaginative
picture of 426,049 Americans setting a
light to a cigarette every minute of every
waking hour of every day of the month.
That is a picture of the cigarette indus-
try, to set beside the statement of the
$36,808,752.17 in internal revenue collec-
tions from cigarettes for the month of
April, 1939.

IIoBAUT B. UAH liins— Editor

Business Manager— B. S. Phillips

Jhe Chesterfield glove, created by New York's
smart designer Merry 1 1 id I,. .

(jriginal and different too is Chesterfield's

way of combining the world's best tobaccos to bring
out the finer qualities of each. It's the Chesterfield way
and that's why Chesterfields are milder than other
cigarettes. They also have a better taste and more
pleasing aroma. Chesterfields really satisfy.

'.ivTRi

HA\n -AND -GLOVE WITH
MORE SMOKING PLEASURE

THE TOBACCO WORLD

Vol. 59

JUNE, 1939

No. 6

HEET1X(JS ^'o with j-ifts. No words couia be
more appropriate to accompany tlie gift box
of cigars to Father on bis day than some ot
tliosc'embodving tlie praises of tobacco, written
bv famous men. A wife and motlier, for instance, might
«,u(de to the (biddv of her cliildren the words ot YA-
ward Hnlwer Lvtton: ''A good cigar is as great a com-
fort t<» a man a's a good cry to a woman. lie son at
(.(,lkM.o could flatter the Old Man and acknowledge the
source .d" his regular allowance and irregular touches
bv citing those other words by the same author: ihe
man who smokes, thinks like a sage and acts bke a
Samaritan."

HAXKLIX PIKHCK ADAMS, who serves with
the encvclopedic John Kieran to form the duo
(►f reliable mainstays on the adult "Informa-
tion IMease" program, once wrote some verses
that might well go along with the presentation to Dad
of the most uxpeiisivu cigars:

The ricli man has his motor car,

His country and bis town estate.
He smokes a'lifty-cent cigar

And jeers at Fate.
Yet though mv lamp burn low and dim,

Though I must slave for livelihood-
Think you that 1 would change with bimt
You bet 1 would!

While with the gift box of a i)opular brand, what
could be more fitting than an echo of the famous re-
mark which Vice-President Thomas Hiley Marshall
made t«» .I«»hn <'r«»ckett, Chief (Ucrk of the Vnited
States Senate: "What this country needs is a good
flvt-t'ent cigar!"

--111I ATKVKR Aristotle ami bis worthy cabal may
^1 sav of it, Toba(»o is divine, there in nothing to
(Miual it, wrote Thomas Corneille, who died in
the lirst decade of the eighteenth century.
Tbo'^e words were probably the inspiration of Lord
Bvron, poet of love aiul adventure, who would have
mado a awell copywriter on a cigar account. Listen :

Divine in hookahs, glorious in a \n\^ _

When tipix»d with amber, mellow, rich and ripe;
Like other charmers, w<M)ing the caress
More dazzlingly when daring in full dress;
Yet thy true lovers more admire by far
Thy naked beauties— give me a cigar!

Similar extravagant love of his favorite smoke was
expressed by George Arnold in his poem, **Beer":

O, finer far

Than fame, or riches, are

The graceful smoke-wreaths of this free cigar!

The importance of the cigar in wooing the muse is
further illustrated in a study to distinguish between
the major and minor poets, by Elwyn Brooks VVhite,
w^ho wrote: "All women poets, dead or alive, who
smoke cigars, are major.

>>

rrOMPANYIXG a gift of any type of tobacco
product, the lines of Robert Burton, in his
''Anatomv of Melancholy," would be inspir-
ing: "Tobacco, divine, rare, superexcellent
tobacco, which goes far beyond all the panaceas,
potable' gold or philosopher's stones, a sovereign rem-
edv to all diseases." That would apply to cigars of
anV class from A to E, to little cigars, to cigarettes,
to 'large cigarettees, to snufT, to chewing and smoking
tobacco. But if no smoke but a cigarette satisfies the
pater, the lines of Charles Fletcher Lummis are indi-
cated s

Mv cigarette! The amulet

That charms afar unrest and sorrow,
The magic wand that, far beyond
Today, can conjure up tomorrow.

That ought to give an idea of the wealth of mate-
rial at hand to form a proper greeting for Dad along
with his gift, although the few selections given do not
begin to exhaust the sources.

llFi universality of the appeal of tobacco in its
various forms does give the lie to the Jean de
la Fontaine dictum that "it is impossible to
please all the world and one's father." And
the son who picks his Father's favorite brand of to-
bacco enjovmcnt will be honored as a gentleman, a
scholar and a good judge of smoking, unlike the lad
in "The Modest Retort" by Selleck Osborn:
"My father's trade! Why, blockhead, are you mad!

Mv father sir, did never stoop so low;
He was a Gentleman, I'd have you know."
** Excuse the liberty I take,"

Modestus said, with archness in his brow —
"Pray, why did not your father make
A Gentleman of you!"

Certainlv, one wdio gives a father a gift of tobacco
on his festal'day will never be the subject of such lines
as those Alexander W'oollcott loves to quote: "Lizzie
Borden took an axe and gave her mother forty whacks ;
when she saw what she had done, she gave her father
forty-one.

yj

T.. TOBACCO W.,R,,n ,.... ,«.. U PuMU... b, Tc..cc, W„M Con»;..^o. ^-;. B. .U.f ,n. ..,....n. •„. T,.„... f,/i2;:rL!;",''"'t":: i?.* t'^Z'.

Stocks of Leaf Tobacco Show Decrease

TOCKS of leaf tobacoo owiuhI ]»y dealers aiul
iiiamiraclun'is in tlic Viiitcd States and Puerto
Kieo t)ii Ai)ril 1, VXMK amounted to 2,;u;2,-
SJMMKH) pounds eonipared witli 2,4:5:),r)!)2,(MK)
pounds on April 1, llK'S. Total stocks inereased only
about 20 inilli( n ])ounds l)i't\veen January 1 and A])ril 1
this year whereas total stoeks inereased over 211 mil-
lion ])ounds duiinu' the same ju'iiod last year.

Stoeks of flue-eured tobaeeo on April 1, liKJ'J, were
!Mi!),718,(KMi jiounds, or about 21 million ])ounds under
stoek-< nf April 1, VXAS. The stoeks of Tvpe 11 were
reported as :?S1.1 l.'MHH) ])ounds: Tvpe 12 as 2H<),883,IM)0
]Hmnds: Type i:> as 1(;!>,2S(>,(M)0 ])ounds; and Type 14
as 7S,4:5<M)no pounds on Ai)ril 1, VXM).

Stoeks of tire-eui-ed tobaeeo were reported as 167,-
<»:]<),nO() ])ounds on A]iril 1, 1!)31), eom])ared with 20'),-
:J0!MHH) ])Oun(ls on April 1, IDHR. Viriiinia Fire-cured,
Tvpe 21, >t<)eks were ri'jMirted as 27,71 1,00() ])ounds;
Type 22 as 1(»4,(HMMMI() ]H»unds; Typ.e 23 as :U,r)2rMHH)
Ijounds; and Tvpe 24 a- 1.7u3,(MM> pounds on April 1,
1939.

Burley stocks were only al)out 2C^ million ]iounds
hiuher on A]»ril 1, l!>.".9, than thev were a vear asifo.
The A].ril 1. 193!), rejiort shows 742.7r)7,n()() pounds of
liurlev. Marvland tobacco. Type 32, stocks were re-
ported as 2Ms4,(HH) ].nunds tm April 1, 1939.

One Sucker stocks on A].ril 1, 193,9, were 34.222,(HI0
])ounds: Green Kiver. 2r).r)33,( H M ) pounds; Viririnia Fire-
cured. 3.4S(),nn(l ponnds: Kastern Ohin, 7s3.()()() ])ounds;
Perique, 745,0*'" p(»unds: Other Miscellaneous Domes-
tic, ()09,000 ]»ounds: and Foreiiru-trrown citraretto t4>-
baeeo (Turkish and other) los,12H,lHH) ]M)unds.

Stocks of American-irrown ciirar-tiller types
amounted to 189,250.000 pounds on A])ril 1, 1939, cmuu-
pared with 211,175,0(M) pounds on Aj.ril 1, 1938. All
ciirar-liller type stocks were lower than a year airo ex-
cept Type 4.'). Type 41. Pennsylvania Seedleaf stocks
were rejiortetl a>< lo4,742.<M)0 pound- on April 1, ]93!>;
Type 42, Oebhardt, 15,85H,(VM) ])ounds: Type 43, Zim-
mer, 1 r,,r,.')9,000 ])ounds: Tyfie 44, Dutch. 10,049,000
pounds; Tvpe 45. (Jer>ruia and Florida Sun-Lrrown, 2,-
193.000 ]Knmds; nnd Type 40, Puerto IJican, 39,749,000
pounds. The dt'tailed re|»ort l)y groups of crades
shows 2.15(4,(KM) pounds, or about 1 por cent., of binder
(pudity in those types, 140,009,(KK) poun<ls, or about 74
per cent., as strictly lilh'r quality, 26,233,0(M> pounds,
or al>out 14 per cent, as stennninir irrades. and lfi,79n,-
CMM) pounds, or alxiut 9 ])vr cent,, as farm fillers or
ir round leave<.

The ci«_rar-l)iniler t>pe stocks were about 20 mil-
lion pounds htwei' on April 1, 1939, than they w<»re a
vear asro. Total binder tvpe stocks were reported as
1:10,081,000 pounds on April 1, 1939. Type 51, Con-
necticnt Broadleaf stocks w'oro 31,72(MKK) pounds; Tvpe

52, Connecticut Ha%'ana Seed, 25,B89,f)f)r) pounds; Typo

53, New York and Pennsylvania Havana Seed, 2,r»15,-
000 pounds; Ty|K» 54, Southern Wisconsin, 3r),325,(KM)
pounds an<l Type 55, Northern Wisconsin, 33,582,fHM)
pounds. The detailed report by prronps of trraden shows
that of the total binder typo stocks reported, 3,730,000
pjounds or about 3 per cent, was of wrapper «piality,
52,030,00f) |)ounds, or about 40 per cent, are binders,
and 71,497,OfK) pounds, or almnt 55 per cent., are X
group or stemniin^r irrade tf>baeco.

Shade-*rrown wrapper tvpe stocks were rejiorted
on April 1, 1939, as 10,380,000 pounds. (Jonnecticut

Shade stocks wei-e f»,r)35,0()0 ]iounds and Oeorg'ia and
Florida Shade stocks 3,745,000 pounds. Of tJie total
shade tobacco stocks reported 8,859,(MM) pounds are
shown in the A uroup as being of actual wrapper (qual-
ity.

The foreign-grown cigar leaf tobacco stocks in the
rnite«l Stat«'s on April i, 19:5!), consisted of (;,28!),000
]ionnds ol' Cuba (Havana) tobacco, 1,879,(K)0 of Suma-
tra and .lava, and 2,245,0(M) ])ounds of Pliilippine Is-
lands (Manila) tobacco.

RETAIL DEALERS CONVENTION

THFAMLINIXCJ the merchandising i)ractices
of tobacco retailers, development of a program
for greater and more etTective group activity,
and nnitual l)enefits for producers, whole-
salers, salesmen and retailers — to these aims was dedi-
cated the ]»rogram for the seventh annual convention
of the Petail Tobacco Dealeis of America, inc., in the
Hotel Pennsylvania, New York City, dune 1, 2 and 3.

The oflicers and direct<M"s of the association
])lanned one of the most aml)itious pr(»grams for trade
Ix'tterment yet to be presented to the meml)ers for their
consi<leration and action, Kric Calamia, secretary of
the oruanization, rej)orted.

Nothing was left undone to nuike the gathering a
real profitable experience for all blanches of the to-
bacco industry. With the added attraction of the New
York World's I'^iir in full swing at the time of the con-
vention, the mend>ers expected the largest and most
representative gathering in the history of the a^Mucia*
tion.

An interesting entertainment program was formu-
lated for the ladies — to include guest luncheon, sight-
seeing trip, sail up the Huilson and around New York
harlnir and a visit to the World's Fair.

'J'he business Hcssions of the convention will du-
leiiniue the policy <»f the association for the ensuing
yeai- on its numerous activities. Among the subjects
t«» be discussed are government relations, fair trade
legislation, taxation, marketing research, tratle statis-
tical and legal service, public relations and trade pro-
motion.

The couidry's outstanding retailers of t«»l»ac^
juoducts and cigar store accessories, as well as leatlers
in all branches o£ the industry arc expected to be
present.

BUYS AXTON FISHER STOCK

-Maurice Wertheim, well-known Wall Street figure
an<l senior partner of the investment banking firm of
Wertheim & Co., on May 4th efTected the purchase at
public auction, in a transuction totaling $1,128,540, by
a syndicate headed by his own firm, and W. \j. Lyons
& Co., of a block of 8(M>10 shares of class B connnon
stock of A xton- Fisher Tobacco Company at ^14 per
share. The stock constituted the chief asset of
Standard ('oiinnercial Tobacco Company and was sold
to satisfv various debts of that conjnanv.

Sale of the sto<'k at public auction by Federal
Judge Alfred C. Coxe, which took place in New York,
was opposed l»y representatives of a stockholders* pro-
tective conunittee and of the Securities and Exchange
Connnission.

The Tobacco World

Cigars Increased Slightly in April

As Usiial, Class A Was Responsible;
Snufi and Utile Cigars SKoieed Gains;
Cigareticsy Hou'cver, Register Loss

IXCHFASFS of nearly twenty and one half nul-
*li„„, or nearly fi per cent., in F. S. Class A
ciuars; of more than seventy-sev,m thousand,
oi'more than \V.) per cent., in V. S. ('la>s h ci-
,.ars: of more than eighteen million, or nearly .) per
cent, in total F. S. cigars of all classes; <.l more tha
four nnlaon, or (it. per cent .n l-tHe e.gars ; and o
neariy seventy-two thousand iiounds, or nearl\ •> pci

cent., in snull — . ,. , , ■ i

These were the highlights on the tavorable side
of the report of April withdrawals for consumption,
as released in the supi)lement to the Tobac.(» Ban,m-
eler of the Tobacco Merchants Ass(.ciation ot the

United states. .

Declines of '1 per cent, in cigarettees, ot hi per
cent, in large cigarettes, and of nearly S per cent, m
chewing and smoking tobacco— ^

These were the unfavorable features ot the report.

In cigars of all classes, the total for the month
was 40:M)41,777, of the F. S. product, as compare.l with
:i^4,;ns,l>bl in the corresponding month last year. Uus
was a gain of lM^a,r)l(i, or 4.71 per cent. Ihe 1 hil-

Product

Cigars:
Class A —

liiiU'il States

i'liilippiia- Islands
Puerto Kico

Total

Class B —

Initid Stato . . .
i'lulippinc Islands
I'lurttt Rico ....

April. 1939

3(i3,3(.4.4JU +

n.701,740 —

»2,270 -I-

Increase or Decrease
Quantity Pw Cent.

2().4.^().420

2.551.530

21.57U

5.90
\7M

375,2UH.430 -H 17.9<K),4<^ 5.01

3,l«2,5a —

1,353 —

22,150 +

I .»tal

3,206,(Wj —

1,260.004

l.iMH)

14.150

!.-■ . '

Class C—

United States . . .
Philippine Island?
Puerto Rko ...

Total

ClaM l>—

United Slates . . . .
Pliilippine Islands
Puerto Kico

33.711.134
11.7H0
27,300

97a.3fA
2,14(.

33,75»).2l4

2,5<W.«»3() —
(i87 —

Total

Class E—

United States . . .
Philippine I»lands
P^rto Rico

2,510.317 —

1,(K)5,412

151,764
423

152.187

iunine Islands and Puerto Kico brought the grai
tl, al up to 4U,!I4:M)S2, as against -^•^'■^^^^^^^^^J^.]]^'^ }''-
cMva>.- of ir),:,7l!,4!Hi, or 3.9 per cent. Ihe Philippine
contribution of ll,77.^:)Hrj rei)resented a loss ot ..).).),-
H4(), or 17.8:5 per cent., whih' the I'uertc Ixico total ot
13i;72() was a gain of 3.8 per cent

Class A cigars were r.-sponsible }''\f'!:\'^^^^^^^^
the I' S total. This liguiv comi.aivd with .>4J,.K)4,nui>,
a sul^^tantial increase of 2t),43i),42n, oi :).Im; per cent.
A decline of 17.83 per cent, in the Pliilippmes with-
drawals, however, brought the volume and percentage
of gain (h.wn, in spite of an increase from Puerto Ivico.
The Class A total was 37:),2()8,430, as compared with
;;:)7,3()7,!>7n, an increase nf 17,1M)(),4(;(I, or O.ol i)er cent.
Clags K cigars shuwed a net gain of H),48!) or
•;s ;•> per cent. The other three classes declined: ( lass
I',," -is per cent.: Class C, 2.MI per cent.; i'lass D, o.cJ

per cent.

Both Philiiunues and Puerto Kico cigarette> rug-,
istered advances, but with no elTect on the drop m jhe
I . S. inoduct from 12,o2(;,722,723 to 12,2(;!>,248,ss, .

Following are the cmnparative ligures:

28.3<>

M.m

l^s )

2,m

s./<l

5.72

274.030 -H

25 —

77.230
741

3'»24

Total

tunc, /y W

274.055 H

7f.,4H«) .38.72

Product

Tula! All ClasscM

L uiU'tl .stall -^ •
Philippine Island-
Pin 1 1>> Kiio ...

( I rand Total .

.itile CiKurs:

L niud States . . .
Philippine l^land-
Puerto Hil (• • • •

April, 1939

41 »3.()4 1,777 4-

11.775,585 —

131,720 -f

Increase or Decrease
Quantity Per Cent.

18.123,510

2,555,840

4,820

414,949,082 -f 15,572,490

11.509,827 + 4,318,694

4.71

17.83

3.80

3.90

(»0.06

Total

11,509,827 -I- 4,318,094 00.06

1 ij^urcltcs:

United States

Philippine IslamU
l*uerto Hi* i»

li.tal

Large Cigarettes:

Unitvd Stall >

Philippine Islanil-
Puerto Hicu

Total

SnufT Ub'*.):

.\U I'liitnl Slatis

Tobacco ( Chewing and
Smoking) lbs.:

l^iited States

Philippine Islands

Total •

12,269,248.887 —
132.137 +
820,U(K) -f

257.473,836

1 10.737
3U9,(.(M)

12,27031,024 — 257,053,499

81.711 —

110.139
20,W)0

81,711

130,139

3.(M9,347 -f

71.930

22.0l8.2r.7 - 1,952.935

22.<. 18,207

1 '.>5J.''.V^

2.0«)

2,Cto

57.41

61.43
2.45

7.95
7.95

Tobacco Products Gain in 10 Months

Little Cigars and Large Cigarettes

Alone Fail to Share in the Increases

During the 1939 Fiscal Year to Date

F the six jj^onoral classifications of tobacco
products — cij^ars, little ciu:ars, ciu^arottcs, larji^e
cigarettes, siiiilT, and manufactured tobacco
(chewing and smoking) — only two, namely, lit-
tle cigars and large cigarettees, failed to increase in
withdrawals in the first ten months of the fiscal vear
1939, as reported in the supplement to the Tobacco
Barometer, j)ublished by the Tobacco Merchants Asso-
ciation of the United States. The others all advanced,
not much, but enough to register an improvement.

V. 8. cigars of all classes came through with
4,311,447,049, as compared with the first ten months
of the 1938 fiseal year. This was a rise of 52,741,030,
or 1.24 per cent. Philippine and Puerto Hico declines
however, brought the net gain down to 27,985,934, or
0.63 j)er cent.

Class A was, as usual, the big performer. The
U. S. withdrawals totaled 3,830,357,110, as compared
with 3,733,81K),730, an increase of 96,556,380, or 2.59 j)er
cent. Here, too, losses were registeretl in the P. I.
and P^_R. products so that the grand total for the class,
3,982,750,535, was only 1.85 per cent, ahead.

For the i)eriod, all other classes registered de-
clines, in fact, the only i)lus signs in the record cover
l*uerto Kico in Class 1) and Philippines in Class E.
Class B went back 14.98 jier cent. I'. S., and 15.65 per
cent total. Class C retrograded 7.57 i)er cent. U. 8.
and 7.6 jicr cent, total. Class D declined 9.28 per cent.
r. 8. and 9.61 |)er cent, total. Class K slijjped back
10.40 i)er cent. U. 8. and 9.81 per cent, total, with the
aid of the P. K. gain.

U. 8. cigarettes totaled 135,970,223,981, as com-
pared with 135,33(5,024,075, a gain of 634,199,906, or
0.47 i)er cent. Withdrawals of the l\ I. products were
almost (luadrupled, and there was only a slight drop
in P. K. withdrawals, but, just the same, there was no
perceptible dilference in the jiercentage of increase.
The grand total for cigarettes was 135,976,111,568, as
comi)ared with 135,336,t)24,075, a gain of 635,472,290.

8nutf accumulated a total of 31,703,213 jjounds, as
against 30,865,408, an increase of 837,805, or 2.71 per
cent. Chewing and smoking tobacco totaled 250,384,-
117, an increase of 1.36 per cent.

Following are the comparative figures:

Product

Cigars:

Class A —

United States

Philippine Islands . . .
Puerto Rico

1st 10 Months
Fiscal Yr. 1939

3.830.357.110

151.596.325

797,100

+

4-
+

Increase or
Quantity

96.556,380

15.690,240

8,344,225

Decrease
Per Cent.

2.59
9.38

• * • «

Product

Total All Classes:

United States . . . .
i'liiliiipine Islands
Puerto Rico

Grand Total . . .

Little Cigars:

United States

Philippine Islands
Puerto Rico

Total

Cigarettes:

United States

Philippine Islands
Puertt) Rico

Total

Lar^e Cigarettes:

Ignited States . . . .
Philippine Islands
Fttcrlo Rico

Total

Smiff (lbs.):

All I'nited States

Tobacco (Chewing and
Smoking) lbs.:

l/nited States .
Philippine Islands

Total

1st 10 Months
Fiscal Yr. 193S

... 4,311.447.049

152.163.592

1.396.2(K)

-f-
+

+
+

+
+

+

Increase or
Quantity

52.741.030

lr..062.671

8.(,92,425

Decrease
Per Cent.

1.24
9.55

... 4,465.0<k),841

27.985.934

Total

3.982.750.535

72.521.915

1.85

0.(»J

. . . 130,641,733

17.479,UJ9
79tj,686

Class B—

United States

Philippine Islands . . .

39.122.149

74,666

124.400

6,890.430
224.104
182.7tH)

14.^

11.80

Puerto Rico

l.K),641. 733

18,276,r»(»9

12.27

39.321,215

7,297.234

15.65

Total

...135.970.223.981
1.784.«>07
4.102.580

634.199.906

1,320.(H>4

47.620

Class C—

United States

Philippine Islands ...
Puerto Rico

408.657.834
254.158
470.900

33.4<j<..690

27,752

169,300

33,663.742

7.57

• • • •

• a • 9

0.47

...135.9/6.111.468

635,472,290

503,000
16,839

0.47

Total

409.382,892

7.60

2,ms.\m

1.121
206,261

Class D—

United States

29,6W.6»

208,555

3,800

3,035,622
143.997

3,175,819

422.608
23,422

928

• • • •
« * * •

20.05
7.55

I'hilippine Islands . . .
Puerto Rico

2,212,550

519.739

19.02

31.703.213

837,805

Total

29,881,975

3,640,336
29,^8

9.61

2.71

10.40

Class E —

United States

Philippine Islands . . .
Puerto Rico

... 250.384.117
153

3.359.821
99

1.36

Total

3,670.224

399,186

9.81

. . . 250..184.270

3,359.920

1.36

Tobacco in Aboriginal Times

Archaeologists Unearth Pipes and Other Relics of Smoking

The Tobacco World

HE tobacco which we smoke today so casually
and pleasantly has a history that dates buck
beyond tlie dawn of civilization in the western
hemispheie. The aboriginal Americans of a
thousand years ago looked to the tobacco plant to ap-
pease their gods, heal their sick, strengthen their war-
riors and give \visdom to their civil leaders.

Pipes of stone and clay and other materials un-
earthed bv Works Progress Administration workmen
on archaeological projects in various parts ot the conn-
trv recall bv their graphic shapes and designs, their
siie and otlier features the ancient uses to which to-
bacco was put.

The layman's reaction to one of the five- or six-
pound ston^ pipes found at various WPA excavations
in the Tennessee Vallev, for example, would be one ot
amazement that such a pii.e could be smoked with com-
fort Both hands would be required to hold the pipe
to one's mouth. The answer to this paradox is that
the heavy pipe was not used for casual smoking enjoy-
ment. It was cari'f ully kept on a pedestal m the tribe s
temple or ceremonial house and only smoked by the
leaders at tribal ceremonies.

If the warriors were going out to battle, the chief-
tains, with elaborate ceremony, would pulT the pipe to
bring them success in warfare; if an imi)ortant tribal
decision had to be made, the civil leaders would smoke
the ceremonial pipe to invoke the wisdom of the gods;
similar serious occasions called for the use of the pipe.
Otherwise it remained carefully guarded, and un-
touched.

One type of aboriginal pipe which was still m use
when the White Man came to America, was the toma-
hawk pipe. This huge device. shai)ed something like
a hatchet, was used as a weapon, a hammer, a mace, a
pi|ie and a hatchet. It was big enough to kill a man,
and served various utilitarian purposes.

Captain John Smith, the famed founder of Vir-
ginia, reported pipes sufiiciently large to ♦^ . . beat
out the brains of a horse."

Smoking pipes ranged from simple reeds to hollow
bones, wood, stoms earthenware and clay tulu-s includ-
ing among the more a<lvancod primitives, effigy pipes
on" which were carved figures of humans and animals.
Among the effigv pipes made by the early Aniericans
were figures ^lortraving ducks, eagles, owls, wolt-heads,
lizards, turtles, frogs, fish ami snakes. Some aborigines
to(»k the smoke tlirectlv into their nostrils by means of
a hollow, two pronged stick, tlu- ends of which they m-
• sorted in their nose. Metal too was used for making
pipes to some extent among the early Indians.

The metiicinal uses of tobacco were varied in the
davs of primitive America. Modern manufacturers
mav advertise that their products soothe the throat,
ease the nerves, aid digestion or what-not, but none of
their claims approach those made for tobacco in by-
gone centuries. Smoking or chewing were .lUst two of
the methods in which tobacco was used as a medicine.
Other forms included: (1) heating the leaves and ap-
plving them to parts afiFected, (2) rubbmg teeth with
rag dipped in tt« juice, (3) wrapping th« leaf into pill

and inserting in tooth, (4) boiling the h-aves and mak-
ing decoctions similar to syrup, (5) reducing leaves to
ashes, (6) pounding green leaves and mixing them witli
oil or steeping them in vinegar, (7) fermenting tobacco,
(S) rubbing leaves on aifected parts, (9) inserting juico
in wound, and (10) ai^plying bruised leaves to sore

spot. ,. .

The ancient Indian medicine men, according to
some accounts, had a more realistic conception of the
real curative power of tobacco than did their followers.
The medicine men, when called in to administer to an
ailiii'^ brother, would provide themselves with well hid-
den sticks and stones. They would l)low the sacred
smoke over the atTected parts of the sick man and per-
form other rites associated with the treatment. Alter
thi^ procedure thev would mysteriously produce the
forei"ii bodies' and tell the ailing tribesman that the
siiK.ke had expelled the sticks and stones from his body.
Occasionally, the cauterizing etTect of the hot to-
bacco fumes would actually effect a cure and thereby
enhance the reputation of the medicine man.

As the primitive Americans became more skilled
in shaping pots, ornaments, weapons, tools and other
implements, thev ])roduced more elaborate smoking
])ipe^ Many of the svmbols wiiich decorated the tubes
had I'ueanings deeply associated with tribal gods and

customs. . . .

The most important smoking device of the primi-
tive Americans was the Calumet, an elaborate pipe that
was, as Father Marquette wrote, *'. . . the most
mysterious thing in the world. The Sceptres of our
Kuvrs are not so much respected; for the Savages have
snch a deference for this Pipe, that one may call it
The God of Pcfirr and War, and the Arhter of Life

and Death." ..« x- e i. *.•

The Calumet was used in the ratification ot treaties
and alliances, in the friendly reception of strangers
the declaration of war, the establishment ot ])eace, and
to assure the safe passage of a traveller through hos-
tile territory. Its sanctity was seldom violated by aiiy

*^This pipe, usually of polished stone, embellished by
brit^ht colored feathers, and having a long stem, was
used bv the aborigines to invoke the blessings of their

gods.

When the Calumet of peace w^as offered to a chief-
tain of another tribe, and he declined it, the .letusal
meant war. If the pipe were awepted, the act sigmhed

tieace

The use of the Calumet, a flourishing practice when
the early European explorers discovered this continent,
ha<l been, in the opinion of scholars, follo^ved for cen-
turies. Some of the large pipes found by WPA work-
men at the various excavations throughout the county
are regarded bv achaeologists as ( 'alumct types pecul-
iar tolhose areas in which they are found.

WP\ workers, operating under the direction of
train.d scientists, have unearthed pipes of stone, day
and other materials that were used centuries ago. ihe
earliest Americans smoked for personal pleasure as
well as for ceremonial rites and enjoyed their tobacco
as we do today.

Tobacco iiuule its debut to recorded historv on Xo-
veniber 2, 1492, when Coluinbus sent out two emis-
saries, Kodriiio de Jerez of Ai»ranionte and Luis de
Torres, with letters to the Khan of Cathav, in wliose
country lie thought he had landed.

Oolunibus' men failed to find the Khan, but they
did find Indians smoking- tobacco, a custom that the
Euronean ex]»lorers picked up and took back home.
Now the custom has si)read thi-ouuhout the world and
tobacco is one of the most valuai)h' i)lants known to
men.

Tobacco was not only a friendly stinuilant, a medi-
line, an inceiisi', and a medium of worship; toluicco was
also an intoxicant indulued in l»y the al)ori<iines. Smok-
inu- had, under certain conditions, an intoxicatinu' elTect
and some tril)es distilled the plant to obtain a t'vpe of
primitive spirits.

As late as lirifi. accordinu to some authoiities, the
Indians iii California, itiuorant of alcoholic bcveraues,
smoked wild tol)acco in order to become intoxicated.

Some acc(»nnts record Indian celebrations lastinii;
for hours aftci- which the braves wouhl fall stupefied
and lu' carried by iheir wives to hanmiocks in which
they would "sleej) otT" the effects of tobacco sjtree.

These lonii foruotten tobacco customs of the
Indians who live<l here hundreds an<l hundreds of years
before the White Man are uraphically recallcMl to us
by tlie finds on AVI'A .archaeolouical jirojects that are
in i)ro,t'ress in a score of states from tin- (rreat Lakes
to the (hilf and from the Atlantic to the Pacific. Scien-
tist- <lirectinu this work are slowly and painstakinulv,
but nonetheless surely, ]>iecin,u- out the story of the lives
and habits of primitive Americans.

( (

MARTIN J. SHERIDAN, SR.

Martin J. Sheiidan, Sr., a vice-jiresident and di-
rector of Philij) Morris & Co., Ltd., makers of cis-a-
rettes, who had been in the tobacco business in New
York for more than forty years, died Mav 1H at his
home, Xanabil Farm, near Lebanon, X. J., after an ill-
ness of two months. He was seventy-three vears old.

Born in Pliiladeliihia, lie went to Xew York at an
early aire, and became a ])artuer in char«re of the Xew
York .stores of the (Jodfrey S. Mahii Co., retail to-
bacconists, with several stores, in the early years of
the twentieth century. He was the ori-inator of the
Barkin<r Do^ brand of tobacco.

He later became iiresident of the Continental To-
bacco Co. and when this firm, with several others
merged to form Philip Morris & Co. in the later Xine-
teen Twenties, he became an officer of the amaliramated
concern. At hi- death he was also a director of the
Tobacco Products Lxjiort Corporation.

He was active in business until he iM'came ill in
March. He was a member of the Conunonwealth Club
of Richmond, Va.

P. E. BUYS U. S. CIGARETTES

In spite of increased unemiiloynient, Puerto Kieo
continued its record breakinjr purchases of cigarettes
irom continental United States during the first nine
months of the current fiscal year, according to a state-

t"^u K}^f ^'^*'''^-' ^''"»" Trade Council, based on
unitM htaten Department of Commerce flinires.

Sales to the island totaled (it )4,( )(!(>,()( )U cigarettes
as compared with 5fi2,( )()(),()( )l) in the same period a
year ago, an increase of 8 j)er cent.," the Council
stated. "The value of the shijiments, which totaled
$2,58(),()()(), was 11 per cent, greater than hist year.

"Sales of stemmed leaf tobacco from l*uerto Kico
to the States amounted to i:i,50(),(HK) pounds, a decline
of 0 ])vv cent, for the nine months, while the value was
l.*> per cent, less."

Total shipments to Puerto Kico were valued at
.^:)S, ;]()(>, 000, a decrease of <) per cent., attributed largely
to lower income resulting from Federal restrictions on
the island's major industries, the Council said.

REVIEW OF A CANADIAN TOBACCO STORY

According to a Toronto, Ontario, publication, an
agricultural miracle was started in the Dominion when
a native of South Carolina (C. S. A.), under the
auspices of the Dominion Department of Agriculture,
an(l a Canadian tobacco grower, planted and harvested
their first twenty acres of tobacco in 1!>2:;. After a
survey of Quebec and <)ntari(., an<l at last the milk-
weed saharas of Xorfolk County, it was decided that
soil conditions there were simifar to those of the to-
bacco-gr<»wing southern states (C. S. A.).

The croj) is bright-leaf tlue-cured tobacco, and in
IIKIS the crop brought about .$1(;,00( »,()<)() cash money
to the communities where it is giown. In 1927 the to-
bacco area amounted to 7570 acres, upon which (".,247,-
7.')0 pounds of bright-fiue-cured tvpe cigarette leaf were
iiiown. In 1938. on (;i,000 acres, the harvest ran
around 70,000,000 pcmnds, and almost all of that acre-
ape was the des]>ised, worthless barren blowsand of
192:J, and for ordinary agricultural purposes the soil
was |>oor. The Toronto juiblication is here quoted:

''There's an ironic twist in the fact that ,

American born, just about ruined the Lnited States
export tobacco business, so far as the Canadian market
IS concerned, when he figured that Xorfolk blowsand
and South Carolina blowsand were prettv much the
same. Canadian manufacturers used to imiMjrt 40,(MM),-

000 pounds (18,000,000— Kd.) of American tobacco an-
nually. Xot any more. We grow all our own Hue-
cured cigarette tobacco, and have a sizeable surplus
lor export. Our own tobacco export business, par-
ticularly to the British market, is l>eginning to give the

1 nited States some irritating competition."

EMPLOYMENT IN THE INDUSTRY

Employment in the tobacco industrv <lurin«»- the
month of February, lil.'H), as shown bv statistics of the
I . S. Department of Labor, has just item matle public,
together with comparisons as follows:

('hewing and smoking tobacco and sntiff factories
during February WM) showed eniployinent at a\A iMJr
cent., a gain of 1.4 per cent, over Jaiiuarv 193, but a
loss of 4.7 per cent, compared with Februarv, 19.38
I iM'se same lactones had payrolls at 6.3.8 per cent dur-
ing February, 19.39, a decrease of 4.0 per cent, from
January, 193{l, and 9..3 per cent, from Februarv, 19.38.

Cigar and cigarette factories during Februarv
19.39, showed employment at ('.2.5 per cent, a gain of
(..1 jier wnt over January, 19.39, but a decrease of 1)7
pc»r cent, compared with Februar%% 19.38 These fac-
tones had payrolls at 49.3 per cent, during Februarv,
I.M.I, a gam nt 3.9 per cent, over Januarv, 19.39, but 'a
riecrease of 1.9 percent, compared with February, 1938.

The Tobacco WorU

2 FOR 25c

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to build
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Wage and Hour Amendments

]»rov

HF proposed amemlmeiits to the wag»'-aml-hour
act as re]>orted bv the House Labor Commit-
tee* eliminate certain difficulties for the cigar
industrv which were created by the origma
p.uusions of the Xortcm Bill, according to Samuel
Blumberg, general counsel to the Cigar Manutacturei.

Association of America. . , ^u <• *u«

The bill, as reported, would exenii>t both from the
minimum wage and the maximum hour provisions ot
the act all emplovees employed in haiulbng, strippimr,
grading, fermenting, packing, prior to storage, ana
storing leaf tobacco. ,

If this provision becomes law, workers emploxed
in tbe essential operati«.ns on cigar leaf tobacco, as wel
as other types of leaf tobacco, will be entirely exempt

from the act. ^ , ^i »» .. „ .^v

This proposed amendment replaces the aiea ot

production" exemption «.f the present «*'*.' n>n the
extended hearings, was recent y he d app icable to ihe
preparation of Puertc» Rican cigar leat tobacco. Since
heie are essentiallv agricultural rather than manutac-
turing operations, Mr. Blumberg stated provision for
their continued exem|)lion accords with the intention of
Congress when the wage-and hour act was originally

^"""Tn' addition to preserving an appropriate exemp-
tion for an important type of agricultural activ, y, Mr.
Blumberg said, the aiiu-ndments as reportinl by the
House Committee eliminate the danger ot creating seri-
ous confusion in tlu- IMhtIo Hican tobacco industry.

The X»»rton Bill, as iiitro<luced, eliminated the "area
of production" alt-ogether, and in addition, provided
for the establishment of special minimum hourlv rates
for Puerto Kico. If passed as introduced, the Norton
Bill would have terminated immediately the existing
-area of production" exemption under which the to-
bacco industrv on the Island is operating and would
have made effective the prohibitive 25 cents statutory

minimum.

Durin*^ the months that would necessarily elapse
bc»fore a special committee could fix lower minimum
rate, foi- the Island, the entire Puerto Rican tobacco
indu-trv would be disru|.ted. Since the industry could
not possiblv meet a 25-cent minimum, all current oper-
ations on tobacco would have to be suspended and the
uncertaintv concerning the minimum rate to be tixert
would prevent dealers and manufacturers from under-
fikiu'-' the necessarv commitments for the raising ot a
liew (M-np of tobacco. The amendments to the Norton
Bill which wr-re adopted by the House l^ommittee re-
He%'e tlii-^ situation bv assuring a continuance ot an
exemi»ti»»n for toV)acco workers irres])ectiye ot any ac-
tion that may be taken to fix a general minimum wage
for the Island of Puerto Rico.

The amendatorv Bill, as reported by the House
( 'nmmittee, is on the whole, according to Mr. Hlumberg,
a sound attempt to overcome some nl the difficulties
which have arisen in eoimection with the administra-
tion of the wage-and-hour act and should receive favor-
able treatment in Congress.

POPULAR LEADERS

By P. Lorillard Co

BEECH-NUT

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SENSATION BETWEEN THE ACTS
20forlO« 15«pkQ. often

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s^nd

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LlOf*.

Kl

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KING EDWARD

Americans Biggest Selling Cigar

For Urfcr summer-time urtit ••!«•, pMiA
the l)«ndy Ten-Pack--- 10 btj King Edwardi
(or a quarter. The ideal package for ftthing,
camping, picnicking, golfing, and other out-
door activitiei.

JNO. H. SWISHER & SON, Inc.

Cigar Uami\acxurers . JACKSONVILLE, FLORIDA

to

BURLEY WHOLESALE
SHOWS DECREASE

ROSS wart'liousc sales of Burk'V tohact'o in thi'
UKkS-,")!) soaf^oii totaled ai)i)roxiinately 35Hi'
million pouiids, and averaged $11).01 per hun-
dred, reports the Bureau of Ai»rieultural P>on-
oinies. In the j)revious season gross warehouse sales
totaled 419 million pounds at an average of $20.08 per
hundred. This represents a decrease in the general av-
erage for the iy38-;31> season of $1.07 per hundred
pounds.

Kesales were reported as amounting to around 4.7
per cent, of gross sales at an average of $i:).(;.j per hun-
dred. Xon-warehouse lirst hand sales were reported
«s approximately 71S thousand pounds at an average of
$ir).r)7 per hundred. Total producers sales apjuoxi-
mated XQr^ million pounds. In 1<KJ7-;JS producers'
sales totaled slightly over 402' i; million pounds or
ahout 60-i^i million jiounds higher than in the 10.S8-31)
season.

The hulk or around DH per cent, of sales occurred
during the months of I)eceml)er and Januarv. Sal(»s in
Fehruary were oidy slightly more than (J million pounds
as compared with Fehruary sales of nearlv 27 million
pounds in the 1!>:}7-;5S season. The highest' general av-
erage in l!KiS-.3n was received in Decemher when
nearly loH million jjounds were sold at around $19.70
per hundred. The heaviest sales of the season took
place in January, when more than 187 million pounds
were sold at an average of approximately $18.50 jjer
hundred. In Fehiuary the general average of sales
dropped to around $lo.lO per hundred.

Out ()f total gross sales of ^olH- uiillion ponnds,
nearly 2.>2 million pounds were on Kentuckv markets,
around 06 '^ million |>ounds on Tennessee markets, and
slightly over X\ million pounds on outlving markets.
Sales on Kentucky markets averaged $19.47 jicr hun-
dred, on Tennessee markets $18.1(; per liundred, and on
outlying markets; $17.18 p<»r hundred. Sales averages
by separate markets in Kentucky ranged from $11.05
to $21.50 per hundred, in Tennessee from $11.97 to
$19.68 per hundred, an<l on outlving markets from
$12.44 to $1S.:!!» p:.,- hundred.

For the entire Hurley district, volume of sales by
separate markets ran from around i;;^. tliousanil
liounds to over 75' o million pounds. The~ volume of
sales by individual markets as compare*! with the previ-
ous season decreased in all instances with the exception
of three. These three markets showed slight increases
in volume over the previous season. In athlition to the
nmrkets sj»lling Hurley tobacco last vear, sales of Bur-
ley were held in 19:i8-3<) on the markets of Princeton,
Ky., and Clarksville. Tenn. The volume of sales at
these points, however, was verv li«rht.

Average prices by Inited States grades for Hurler
tol)acco in 1938-39 were considerably lower than in the
previous season on lugs, flyings, an(i good to choice tan
leaf. Tips, low and fair (puilitv leaf, ami all grades of
red leaf were liiglu'r. TIh' better tpialitv grades (»f
lugs and (lyings showed the largest decreases, f.ow
«inality red h'af and tips showed the largest percentages'
<»t increase. Flyings were in relativelv jioor demand
tliiuughout the season. Prices bv grades generally
wrr.. higher during the first week of sales than at anv
other time during the season. The 1938-39 season was
characterized by a relative steadiness of prices week bv
week in contrast with considerabl,. fluctuations in 1936-
37 and n>37 :N.

Tht Tobacco Wofl^

NO reineiiibiance will b<' nmre nt»preciated by Dad
en his day than a gift nf tobacco in the form in
which he enjoys it nii.st— whether it l»e in cigars, ciga-
rettes, snuff, smoking <»r chewing tobacco. Pipes and
other smoking re<iuisites are also very api)ropriate.
The tobacco retailer has an atlvantage (.vt-r other types
of tnc-ivhants in the celebration of FatherV Day. The
dav was nmde tn nrder fur the wide-awake tobacconist.

ceo W'

tl

June. Hj.iQ

NOW...FOUR EXTRA COUPONS

in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamson Tobacco Corporation

EXPORT TRADE HOLDS UP

OTH the volume and values of Uiiitod States
exports of leaf tohaeeo have held up relatively
lu'tter than the export trade in other agricul-
tural products in recent years, it is reported
by the Bureau of Auricultural Kcononiics. The <iuan-
tity of tobacco exjKirted during the year ended June
.*>(», 1!K)8, was the largest since liKJ.'J-.'U and the value
was the largest since ll>2l»-;)n. Volume and value were
only slightly less than the ll>2l)-29 average.

In contrast, the volume of forty-foui- agricultural
exports was down about 'M) per cent, during this period,
an<l the total value of exports of farm products was
down more than oO per cent. Approximately 4GU,-
(KH),IKH) j)ounds of tobacco valued at $140,(KH),()b() was
exi)orted during the year ended June oO, 1938.

"Our changing tobacco exports" is the subject of
an article by \\. S. White, Jr., in the March i.ssue of the
Bureau's "Agricultural Situation." White says
United States tobacco exports "were a diminished \)yo-
l)ortion of total agricultural ex|)orts for fiftv vears
prior to the World War," but that during the'cuVrent
decade the tobacco exports "have come to refiresent
the largest pi'oportion of total farm exports in over a
century and a half."

Noting the recent >hifts among foreign countries
in the demand for American tobacco, the changes in
foreign production, and shifts in jireferenees for the
dilTerent tyjies of leaf. White says that "these and
other developments suggest that although United
States tobacco exjiorts are unlikely to increase much
in coming years, exports of Hue-cured tobacco undoubt-
edly will continue as the predominant exjiort type."

During the past few years the relative imi>ortance
of the ditferent classes and types in the export trade
has been almost the reverse of twenty-five or thirty
years ago. In the five-year iwriod ended 1937 more
than 312,(KKJ,(KHJ pounds of tlue-cured was exported, or
between three and four times the exports in the period
immediately preceding the World War. On the other
hand, exports of fire-cured have been nmch smaller
than in the earlier jicriitd.

Flue-cured accounted for more than 75 per cent,
of total tobacco exports during the last year of record*
the flue-cured going inincijially to Kngfand and to the
Orient for use in the making oi' cigarettes and smoking
mixtures, jiarticularly cigarettes.

White says it is probable that total foreign con-
sumption of leaf tobacco increased during the past few
years, but that foreign consumption of American to-
bacco M smaller than in 1929. The smaller proportion
u

he attributes "largely to foreign regulation and con-
trol measures associated with economic nationalism
during the last ten years.

"These measures," he continues, "have encour-
aged the ])roduction of tobacco in importing and ex-
porting countries outside the United States. In the
countries of continental Europe, exchange restrictions,
bilateral trade arrangements, the payment of higher
prices for domestic leaf than the prices of companible
grades in the world nuirket, and other forms of dis-
crimination have greatly increased the production and
consumption of non-American tobacco." In England,
the principal foreign market Un- V \\\Ui\ States" leaf!
Empire grown tobacco is favored bv a preferential
taritf.

Trends in foreign consumption also have been
greatly different for the various tobacco products and
kinds of leaf. During the i>eriod since the World War
there has been a world-wide shift in consumer juvfer-
ence away from chewing tobacco, snutT, dark smoking
mixtures, and otln-r juoducts mad<* largelv from dark
leaf. In contrast, there has been a decided increase in
Cigarette consumption.

AMERICAN TOBACCO IMPORTS

MEKICAN tobacco producers in 1938 supplied
3(;7 million pounds, or 43 per cent, of the total
leaf imported that year by twenty European
countries, according to a report receivetl in
the Foreign Agricultund Service of the Ignited States
Ijepartment of Agriculture from its London ofhce.
The year before American fanners supplied 3 Hi mil-
lion pounds, or 41 per cent, of the total.

Imports of all types of unman ufacture<l tobacco
by tin* European countries coverecl in tin- report
amounte<l to about 8fK) million poumls in 1938, com-
pared with 771 million in 1937. The.se imports were
divided between the markets of Uontinental Europe
and the British Isles, with the latter taking the largest
share of the United States leaf.

The I5ritish Isles imported a total of ^ million
pounds ot leaf from all stiurces in 1938 compare<l with
277 million in 1937. Of that amount 271 million
pounds, or around 75 per cent., came from the United
States m 1938 compare<l with 213 million pounds, or
about 77 per cent., in 1937. The balance of the import
re<pnrements of the British Isles came largely from
Empire sources— India, Rhodesia, Nvasaland and
Canada.

The Tobacco WoHd

.."MODEL MliSTRELS'

IVIRV MONDAY NIGHT
COASf VO COAST

CBS

(til tout MlW»>A»t« »Ot lOCAt TIMIi

Tom Howard soys he'd go
to almost ony lengths for a
pipeful of Model — ond h«
proves ii when he lights
up this one, the daddy of
all his 846 pipes I

Imports in 1938 from all sources by Continental
Euroi)ean countries c(,vered in the report amounted to
about 5()() million pounds compared with 494 mi ion
the vear before. Of the 1938 imports, 9b million
noniuls came from American tobacco farms compared
with 103 million in 1937. The balance ot import re-
(Uiirements of the (Continental countries was supplied
mainly bv. Turkev, Greece, Bulgaria, the Netherlands
East Indfes, Brazil, Algeria, Italy, Hungary, Paraguay

and Cuba. . . ^ ti •

(Mgarette consumption is increasing steadily in

practicallv all European countries. In (lermany,

Poland, Belgium, the Netherlands, Denmark, tinlaiu

and Italv this has been retlected in a greater d«miand

f<,r oriental tvpe leaf from the Balkans and t<»r lower

^na.le and cheaper priced flue-cured leaf tn>m coun-

nies other than the United States. In the British

l^les however, it has meant an increased demand tor

Hue-cured leaf, mainly from the Tnited States and

Canada.

The European consumption of cigars has likewise
been increasing, especiallv in Denmark, (J<'rmany and
the Netherlands. This has resulted in an increased
demand for Brazilian and Netherlands East Indies leat
in the Continental markets.

With respect to smoking tobaccos, there has been
a significant shift from the darker, eoarse-cut types
to lighter tine cut types which can be used both lor
piiK? sniokin- and for hand-rolled cigarette's Amer-
ican flue-cured leaf has benefited most from this shitt.

The use of chewing tobacco, in which American
fire-cured leaf is extensivelv used, continued t(» decline
during 1938 in practically all European countries.
This decline has affected adversely the demand tor
Virginia lire-cured leaf used for ehewing tobacco in
Norwav and for Western types used for the same jmr-
poses 'in other European countries, especially (ler-
inanv. The consumption of snuff, in which lugs ot the
dark tvpes are used mainly, also continued to decline.

PALL MALL PROaBAM

«*Music bv Malneck" is now presente*! for Pall
Mall cigarettes on fifty-two stations of the Coluinbia
Network, starting June 1. Sponsored l>y American
Cigarette & CHgar Co., subsidiary of Anierican ™>acco
Company, the series will feature the orchestra of Matty
Malneck; west coast discovery, in a 1 hursday mght
program, 7:15 to 7:30 P. M., New York time, with re-
broadcast from lltl§ to 11j30 P. M.

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter - for the Eye

It's Lighter
It's Better

for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. I.

Ji

EMablUlMd 1886

"BEST OF THE BEST

99

Ma-i.c,«,,d b. ^ SANTAELLA & CO.

Office, 1181 Broulway, N«w York City

FACTORIES: Tampa and Ktp Wtst, Horida

AUTOKR AFT

CIGAR BOXES

Botte Nature
Cedar Cheste

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima. Ohio
Chicago, ni.
Detroit, liich.

Hellam, Hi.

Hanover. Pa.
PhiUdelphia. Pa.
Wheeling, W. Va.

u

Tobacco Merchants' Association
Registration Bureau, 'NtVyokTcm

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A-An allowance of $2 will be made to memberi of the Tobacco Mer-
tnants Association on each registration.

.h.i'^it Vm,^'.^'^"T'.T * ^l''^"^ "^ * '■*'« "ecessitatet the reporting of more
n,fnar /tiV«i ii"!' ''"^ '«» tl'*" twenty-one (21). an additional charge of One
fin . . * 1^ f ' *»« "'»'^«-. " «t necessitates the reporting of more than twentj
Jt^mV n u ^' *"*'.' t'"r»yone Ul). an additional charge of Two Dollar*

tjj.w; will be made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

NEW REGISTRATION

ABRAM CLARK: — 46,730. For pipe tohano ..iilv. Kcgistortd by
.1. M. Doraii <S: Co.. Akron, Ohio, on May 15. 1939. {I'.v eouM-nt of
A. S. \ akntnic ^S: .'^on. Inc.. Mycrstown, I'a. )

TRANSFERRED REGISTRATIONS
MELCO:--21.938 nobaico World). 1 or cigars, cigarctto, cheroots,
stoKU-s. clu-wiiiK and smoking tobacn.. RtKisttrcd March 3, 1911,
by M. h. Loch ,S: (.o.. tkvcland. Ohio. riirouRh mesne transfers
acquired by H. .^lile>n)Ker .S: Co.. Cleveland, Ohio, and re-trans-
ttrred lo .\ntliony Lazzaro, Cleveland. Ohio, on Mav 1(1 1939
VON TILZER:— 20,168 (Tobacco World). l-\,r cigars, 'ciKarettes,
cheroots, stcgies, chewhiK and smokinK tobacco. ReKistered July
.-». 1910. by .\. Isaacs & Co.. Cleveland. Ohio. ThrouKh mesne
transters acquired by H. .^hlesiuKer <*^ C..., Cleveland, Ohio and
re-^tjansjerred to Anthony Lazzaro, Cleveland, Ohio, on Ma'y 10,

DUNNSBORO:— 46,250 (Tobacco Merchants- .XssocJation of the U.
^n-;-, ''"^'''''•'»^^■'^ tiKarettes and cigars. HeKistered October 24.
1933, by (.has. C . Auld Tobacco Co.. .New York. X. Y. Transferred
to Dunnsboro 1 obacco Corporation. New York. .\ Y on I'ebru-
ary 24, 1939,

Internal Revenue Collections for April

Source of Revenue 1939 i^^

^^.f^^^^ $ 9r.7.591.18 $ 938.274 52

^'^'^^^'"^■^ 3f.,H((8.752.17 37,581.057.93

;,r "^f 54 1 .(.82.45 528,734.00

1 oDacco, chewmg' and smoking 4,(171.553 .^2 4 4'^ 948 ^7

CiKarette papers and tubes 'l44;237.7l 'no!933 7(,

Leaf dealer penalties 5.44(1 89 54.99

♦Manufactured Tobacco Produced by Classes

(As reported by the Hureau of Internal Revenue, based on

manufacturers' returns of production)

Month of February

,, , Increase or Decrease

Product 1939 Quantity Per Cent.

V"F. 4,145,490 — 441.827 9.6J

Twist ■..•■••. 470.912 -H ^.292 4.50

l-me-cut Chewmg 319.040 _ 16 U,0 4 82

Scrap Chewing 2,923,992 — 18o!558 s; 82

bmokmg 14.711,479 -f 449,537 3.15

Total 22.570.919 — lf,8.716 OJ4T

Two Months Ending February 28
Ti. J .. Increase or Decrease

V ?. ■••••■ 7.5(.4,247 — 749,090 902

Twist ...•■•..; 870.570 — 17.409 1.97

Fine-cut Chewing 090.942 + 4.(,80 0 68

Scrap Chewing M43.472 -f 8^ 79(» 1*17

Sn^o^^m 30.301.890 4- 1,373.'88S 474

Total 45.831.127 + 097. IW Tm

♦The production figures are in pounds, and ar, subject to re-
vision until published in the annual report of the C„mmi«.sioner of
Internal Revenue.

Advertising consists in telling who you are,
where you are, and what you have to offer.

CIGAR BOXES

TaL Alc«a«alB 4-9S33

fi&^^^

l«tabll^«« vm

Mf-e4l BII«Tt7««T.

OUR HIGH-GRADE NON- EVAPORATING

OG4R FLAVORS

Make tobacco in«ICow and amooth In charactav
and Impart a most palatable flavor

rUYORS FOR SMOKING and CHEWING TOBACCO

Write for List of Flavors for Special Branda
BMTUN. AIOMATIZEB. AOX FLAVOMS. TASTE SWEETENEIS

FRIES & BRO.. 92 Reade Street. Ne%v York

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCTIANTS ASSOCIA,TION .^-I^^OW.
OF UNITED STATES ^^^WfjM-*

JESSE A. nLOril. Wheeling. W. Va President

iVIV'i^^'.^^''^^'^' ^'''^ ^'"'^- ^ "^ Chairman Executive Committee

MAJ. GEORCE W. HII.L. New York, N. Y Vice-President

CEORGE TI III^MMELL. New York. N. Y Vice President

S. CLAY WILLIAMS. Winstrn Salcm. N. C Vice-President

•'/o';"w'SJ/JCyT^^'^'^'^'^'"- ^'"-^ '^'"^^' N- ""' ".Vice-President

ASA LEMLEIN. New York. N. Y Treasurer

CHARLES DISIIKIND. New York. N. Y Cn„„,el and ManaRing Director

Headquarter*. .^41 Mmtison Ave,. Ne*v York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS. INC.

ALAN C. DAVIS, naltimore. Md . President

EDMI'ND C. DEARSTYNE. Albany. N. V ".Vice President

lOSEPII KOLODN\'. 2m Fifth Ave.. New York. N. Y .Secretary

J. RENZ EDWARDS. Kansas City. Kan Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

PEN L LASCTTOW. R62 FaM Fifteenth .St.. nr.«>klyn. N. V President

R. L MrCDRMK K. 53 Klein Ave.. Trenton. N. J First Vice-President

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

TOBACCO SALESMEN'S ASSOCIATION OF
AMERICA, INC.

IL'^RRY A. ARRAMS President

LEO RIEDERS. mO Broadway. New York. N. Y Secretary

LACK EDEI-STEIN Treasurer

RETAIL TOBACCO DEALERS OF AMERICA. INC.

WILLIAM A HOLLINGSWORTII. 2.^3 Rroadwav. New York. N. Y President

LOriS KLEIN First Vice President

ERIC CALAMIA Secretary

ARTHUR S. MEYER ..Treasurer

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

ALVARO M. GARCIA President

THOMAS C. RREEN Treasurer

.SAMUEL BLUMBERG General Couniri

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

Jefferson. D. Emit Klein. Walter E. Popper, Harry S. Rothschild, and Arthur

A. Schwan.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

BRUCE G NEBINGER. Red Lion. Pa President

C. M. EIIEHAI.T. Red Linn. Pa Secretary

A. S. ZIEGLER. Red Lion. Pa. Treaturer

'4

CUBAN CROP IN APRIL

Rainfalls durinir April ])('niiittt»d the ntart of
Iniiullinsr operations of the 1939 Cuban crop. While
previous estimates as to the size and quality of the
crop have not been chanKed, it is apparently difficult
to make accurate forecasts, as yields have reportedly
varied greatly within the several production zones. An
important development during April, 1939, was the
purchase by Hpain of several thousand bales of low-
grade okl croi) tobacco. On the other hand, the market
for the higher-gradt' old-crop tobacco was practically
at a standstill during April.

Tkt Tmhacco World

^ *- K I V E O

JUL 5 1939

JjrfOapailmentofA^ieuiju^

JULY

1939

ESTABLISHED
1881

ALL TOBACCO PRODUCTS
SHOWED GAINS IN MAY

United States cigars large and small,
cigarettes large and small, snuff, chew-
ing and smoking tobacco— all registered
increases in May this year as compared
to May last year, according to the com-
parative data of tax paid products
issued by the Treasury Department,
Bureau of Internal Revenue. The large
cigar total was more than 470 and a half
milUon, a rise of nearly 13 per cent.
The small cigarette total was more than
15 billion, 445 million, an increase of 7
per cent. Not all classes of cigars gained,
but A, C and E did. Score another ad-
vance for tobacco!

HoBART B. Hankins — EdUor

Business Manager — B. S. Phillips

Copf right 1939, tMjdn ik W^tt^SMoO Gf.

THE TOBACCO WORLD

Vol. 59

JULY, 1939

No. 7

HEC'EDKXT, ineayunishnoss and pi'ssiinism
arc tlirt'c (lisoascs to which all salcsmon arc
subjoet, from time to time, and salesmen of
cigars, cigarettes and other tobacco i)roducts
are included in this eate,ii:ory. The salesman himself
sutTers directly and j)rimarily from these banes. The
business with which he is connected sutTers directly
from the ill etTects on his efficiency. It also sulTers, in-
directly, because these diseases are hi.uhly contagious.
They are ailments that ought to be cauu^ht in their in-
cipient stages, before they can do any great amount of
harm. The first step in the eradication of any disease
is a knowledge of its existence in the patient. lA'fa
each of us look over our own business.

AKF] this matter of precedent. "We've always
done it that way" is an especially priekly thorn
in the side of the business man who insists that
every job around his ]>lace be done with effi-
ciency. We don't mean the man whose conception of
efficiency, or scientific management, as he sometimes
prefers to call it, is illustrated by the story of the new-
fangled office system whose faseinating operation en-
gaged all the time of all the employes of the concern,
to the utter neglect of the persunud)ly necessary func-
tions of making and selling goods and collecting bills.
We refer to that wiser man whose definition of efficiency
is simply '* Doing the thing you have in hand just as
it ought to be done." Nothing ha.s riled such a man to
just anger like the wearisome repetition of the excuse
that a certain thing was done in a certain way because
"we have alwavs done it that wav." That expression
an<l the mental attitude behind it compose the prize
monkev wrench in the nuichinerv of business progresi.

■l^^n IS a godsen<l that many of Qs hav(> banished
^■^H forever from business all those hoary oltl "we-
Bm beg-to-acknowledge-receipt-o f-y o u r-f a v o r"
practices that had no excuse for their existence
beyoml the jjuestionable virtue that they represented
(irandpop's way of doing business. But too many of us
still adhere religiously to the old precedents. And those
of us who have cast aside s<»me of the (»1<1 practices
still have some favorites that we cannot abandon. We
still do some things in a certain way because we have
always done them that way. How much more sensible
and modern and really efficient it is to say, "Hell! We
don*t do it that way any more. That's the way we
used to do it before the depression." It was, first, the
World War that happily disjKdled many of our illu-
sions and forced us to do many of our business tasks
the obviously right way, instead of the way that had
l>een hallowed by mossbound precedent. Then came
the depression to wi|»e away the later crop of prece-
dents.

XXECESSARY fussiness, or picayunishness, is
another attribute that does not belong in this
highly modern business of ours. There is no
place today for the type of men who seem
totallv bereft of loftv ideals and high aims. We all
know such men. They are absorbed wholly in the "here
and now." Thev never look far ahead. Thev are so
thoroughly immersed in their daily plans and schemes
and duties that they have lost their sense of ijropor-
tion. For them the most important incidents of the
• lav are the items of their routine, and thev get all
stewed up when any of the little details go wrong — a
mixup in telephone numbers, a delay in the arrival of
the morning mail, the call of a visitor who keei)s them
from getting to lunch on the dot, something turning up
near closing time that jncvents them frcmi catching the
'>A7). These are essentially small men. They are small
<hieflv because thev are self-centered. What thev need
is a course of treatment that will take them out of them-
selves and give them a glimpse of something nobler and
higher to fight for and aim at. They ought to go out
and look at the stars sometimes.

XD now comes the pessimist. There are many
definitions of the pessimist. There is the one
that says the oj)timist sees the doughnut and
the pessimist sees the hole. Then there is the
other one describing a pessimist as a man who wears
suspenders and a belt at the same time. It is doubtful
if a pessimist can sell anything, although he may take
an occasional order from someone wh<» is alreadv sold.
Pessimists not only fail to get business; they actually
kill it. Doe and Koe are both on a tobacco company*s
payroll as salesmen. Doe says business is rotten, and
that is what he tells evervbodv he meets. l)eing re-
minded of it, of course thev don't buv. Koe knows that
conditions are not as good as they might be, but he care-
fully avoids emphasizing bad news and repeats only the
good news he hears. If he learns that one concern is
shut down, or working only part time, why, that is too
bad — too bad to repeat. But if another concern in-
creases its force, <>r its dividends, or expands its opera-
tions, that news tends to Cijualize matters and it will do
some good to repeat it. Doe glooms around the club
CM- the hotel lobby because "what's the use! People
ain't buying." UOe goes out and builds goodwill for
his product and his house — and makes sales while he's
dninir it.

▲

HEN business is very good. Doe is a fair sales-
man (or order-taker), but Koe is an ace. Like
life, business is pretty much what you make it.
If you can't locate prosiK'cts who are willing
to buv, go out and sell some on the standing of vour
house and the w'orth of your protluct, so that when the
fair weather salesmen come around they will find the
prosjKJCts already sold on your proposition.

Tfce TOBACCO WORLD (e»t. liSO i» publi»hed by Tobacco World Corporatioo; Hobart B. Hankina. President and Treasurer; B. S. Phillips, Vice-President; John Cieary,
S«creUry. Office, 216 Chestnut Street, Philadelphia. Pa, Issued monthly. Subscript ions, available only to those engaged in the tobacco industry or trade, $1.00 a year,
IS centi a copy: foreign, $1.'S a year. Entered at second class mail matter. December 22, 1909, at the Post Office. Philadelphia, Pa., under the Act of March 3, 1S79.

Eric Calamia Heads Retailers

Distributors Foster Local Groups

,.]11K Scvciitli Aimiuil ('(»iiv.Miti(Mi of tlic Hotail
I 'rnluu't'o Dcali'is of AnuM-ii-a ()|umhm1 at Iloti'l
'- l\'inisylvaiiia, Tliursday cvciiiiiir, .luiic 1, tlie
hiisiiu'ss session IttMiiir lu'ltl 1(>:'H) A. M., Friday
and clt^iiiii- Saturday. Kric Calaiiiia wlio lias been act-
in^i- licad of the orirani/atioii sinci' tlic ri'siirnation ol*
Wm. Holiinuswoilli suinc moiitlis ai^o and tlic d^atli of
Viee-Pre^idi'ut Louis Klein, was elected ]»resident for
the ensuinu' yi'ar. Othe>' olliet-rs eh-eted wero John
Maute. i)\' (liieam*, vice jucsident ; i'lill'ord Dawboii,
treasurer, was t'leeted.

The newly eli'cted \un\vd of Directors includes
Kric Calaniia, N'incent I*. < 'onnor. K'alph Williams, Fred
(iritliths, .lanu's .1. Head, .lack Miller, of New York;
Samuel Katz, Hnioklyn: U. ( '. Dean, of Wilininy:tou,
Del.: ClilTor.l M. Dawsun, iA' l>ulYalo; l»cnj. Dcutsch,
Ilohokeii: daniev 1 >nniiimue/.. New Orleans; X. D. Fu-
hank, Atlanta: l>ernard (iartiid<lc. ('hicair«>; W. A.
Jlickey, Davenport, la.: Harry W. .lohnson, St. Paul:
.I(»hn Maute, Chicairo: .Ioh ph Koleszar, Omaha; Wil-
liam D. Filly, lialtimore: .1. II. Marshman, Sprinirlicld,
Ma>s.: <'harles W. Fian, St. Fouis: 11. F. IJowley, ]k)s-
ton: .lohn F. Snyder, ButYalo: ('. 11. Ti.'mann, Fluve-
land: Harry A. 'rint, Philadelphia, autl Moc Weiustein,
of Ni'W York.

In his speech of acci'ptance, Mr. Calamia saitF

"Anv |>orsoTi wlio ir vested with trade leadership
ill these times must realize the seri«»u>ne>> oj the task
that lies ahea<l. I want to assuri' >(»u that in assumin.ir
the presidency nf nur association for the ensuiiiir year
1 am fully aware of the man> respnnsihilit ies awaiting
me.

"It i> with a feeliuLT of deep i^ratitude that 1 ac-
cept the honoi' you have l»estowed upion me. I re«j:anl
the p<>sition of pie>idenc\ of a irreat national trade as-
sociation such as uurs as clothe«l with duties of the
hiuhe>t puhlic tiust. and I shall en<leav(»r with all my
stremrth to fultill the uhliL'-ations of my otlice in a man-
nei- that will merit vnnr c«»ntiinied loyalty and reflect
the value of c<» onlinatetl trade action to elevate and
improve the cnndition- in our in<lustry."

^Vm. llollinir^worth, former presitlenl in his ad-
dress outline«l the (Munlitions that existetl at tin* time of
liis formimr the oriranizatiun of the H. T. D. of Amer-
ic?tt an<l commented <ni its irrowtli and its wmkinirs.

Ill a stirrinir addros, ClilTord M. Daw>on, tem-
porary chairman, slated in part:

"^Ve now ar«' in an era of fiee money, that is, free
to mo«t any citizen eH.^ihle t«» vote provi<liiiLr he is not
in the Retail Tubaceo Inisinc-'^. Wt*. are beinK dependeil
upon to supply a irreat ]iait of that free money. If
tliere is a legislator in the Fnitc'd States of America
who isn't tax-mind«Ml. In- hasn't a> \et made the papers
and they all think that the tohac<*o industry shotdd
l»ut up the hulkof the tax money. Vou know what has
recently happened in thi> State and thi're ar»' many
other states which have two cents nr more taxation on
each package of eivrarettes sold. F>ut that is not all.
UnlesH we immediately become surti<*iently numerically
strong to defeat it, we will have an ailditional K) per
cent, tax slappetl on every sale of loliaeco products so
that the politicians in Washinirton can bnild more antl
better homes for W. F. A. wcukers an<l maybe provide
better sittini; conditions.

"Nothing except stiength can lick that tax. The
legislators in this country think only in terms of votes
and party politics. They don't care a damn about eco-
nomic conditions or fail' taxaticui or industrial life. But
if we could stick a million votes under their noses they
l)erhaps would keep them clean, btit under the ])resent
setup tlu'y will lend their ears and brains (if any) only
to voting power. There are over eight hundred thou-
sad retail tobacco pu-oducts dealers in the Fnited States.
Can't we possibly make them see the light and join up?
Can't they be reasoned into organizing in order to pro-
tect themselves:' I think I know a fellow who can do
it.

*' Occasionally T am asked what the National Asso-
ciation has done for the individual retail dealer, and
while I, of course, know it is not necessary to answer
that (piestion before this congress, I would like to say
that I ])ersonally know that it has been of a great deal
of l)enetit t(> every retail dealer in the United States.
If I were to recite only one or two Inands of cigars, for
instance, which are protected by Fair Trade Laws, 1
would have answered those people's questions to their
own satisfaction. I don't nee<l to mention the great
many other brands of cigars, cigarettes, tobaccos and
pipes and other smokers' accessories which are now
protit-protected to the retail dealer. That angle alone,
not to menti<m the manv otlu'rs, is more than suflicieiit
reason why every <lealer in the Fnited States should
behuig to the National Association, because if we are to
maintain the Fair Tra«h' Laws which provide such pro-
tection, then we must within the coming year become
so numerically strong that we can be heard in a signiti-
cant, emphatic ami unmistakable maimer. We will
never get anywhere by (h'pending upon sound judg-
ment ami fairness alone. We can only gain what this
Iiidustrv must certainlv have if it is to exist, bv brute
strength and co-ordinated etTort."

NEW AXTON— FISHER BOARD

A new Hoaiil of Directors ttH>k over the manage-
ment of the Axtoii-Fisher Tobac<'o Company today and
elected C. Palmer Parker, former treasurer, president.

The board was elected by interests which acquired
control of the company last month through the pur-
chase of H(M'dt> sliares of Class H stock at public auc-
tion.

Fdwin D. Axton, former president, was made
chairman of the board.

The new board took no action regarding a suit
tiled Wednei^day by Standard Commercial Tobacco
( ompany, appealing from the .May U order of a Federal
.Judge which contirmed the sale of the Class B stock.
This stock had been the chief a.s.set <»f Standard Com-
mercial.

New nieinber« of the board are Maurice Wertheim,
Ilenning Chambers, W. L. Lyons, William H. Harrison,
and Howard 8. Cullman.

Of the t>bl board only Axton and C. I*almer Par-
ker were reflected. Those displaced were 1^. W. Rob-
ert, .h ., A. B. Lewis, Maurice Amado, Fry Kehaya, and
K. U. Soymouth.

Th* Tobacco World

(HJXIZANT of the fact that the strength and
etlicacy of a National organization (h'pemls
u])on the supp(»rt it receives from local organ-
izations, a res(»lution was adoi>ted at the recent
convention of the X. A. T. D., instructing the proper
officers to engage more actively — throughout 1 !>)'!) — in
fostering local and state organizations.

Pursuant to this mamlate, Joseph Kolodny, secre-
tarv of the N. A. T. D., accompanied by chairman of
the Board, Allan C. Davis, and Vice-President Fred C.
Winter, attende<l the first *' Western X. A. T. D. Con-
vention" at 8t. Francis Hotel, during the week of

.June .').

Present at the meeting were re])resentatives trom
the States of Nevada, Ftah, Colorado, Arizona, Iowa,
Washington, ()r<'gon, M(uitana and, of course, Califor-
nia.

Following an exceedingly enthusiastic meeting,
(luring which the importance of nation-wi<le unity
within the fold of the X. A. T. D., was particularly

stressed a bampu't was held on Saturday evening. In

ad<liti(»n to the members of the wholesale tobacco trade
and their wives, the gm'sts also inclmled representa-
tives of the major suppliers. Conspicuous among them
were the Pacitic Coast personnel of American T(»bacco
Co., H. J. Hevnolds Tobacco Co., Liggett «^- Myers To-
bacco Co., F.Lorillanl Co., Phili|) Morris ^ Co., Axton-
Fisher Tobacco Co., Stephano Bros., Bayuk Cigars,
Inc, (Jeneral Cigar Co., Brown & Williamson Tobacco
Corp., Philip Florin, Inc., L. & II. Stern, Howe Manu-
facturing Co., A. II. DuCJrenier, Inc., C(»rral, Wo«liska,
and a numlx'r of others.

On his way back from the Coast, Mr. Kolodny
stopped olT at Chicago where he conferred with the
officers of the Chicago Distributors .\ssocitttion regard-
ing the current conditions in that city.

A meeting of the WiMcousiu distributors was held

at the Wisconsin Hotel, Frida> evening, dune K). In-
asmuch as the State of Wisconsin has recentl> en-
acted an Fid'air Sales Law prohibiting the sale of mer-
chandise below cost, plus specitic mark nps— in order
therefon- to remler the law efficiently ojierative and
satisfactorily workable, it was unanimously resolved
that a Stat(' associati(»n of tiie Wisconsin dist ribntois
he formed forthwith. Temp(nar> direct(ns weic
in'omptly <lesignated, and a state-wide met'ting of all
the jobbers was <leci(led upon. This will be held at the
Wisconsin Hotel, Milwaukee, Suiulay, .June '17). Louis
l>erman, D. Knrman Co., Milwaid<ee, was chosen as
temporary chairman.

From Milwaukee, Mr. Kolodny ]>roceeded to Syra-
cu.se, N. v., where a state-wide meeting of all the dis-
tribut(»rs of the State was held in conjunction witli tin-
State Tax C(miyiission. It was without doubt the larg
<-st meeting ever held in the State of Xew \ ork. .Vttei-
a delightful luncheon, the Tax Commissioner- <.f the
State proceeded to outline the rules ami regulations
governing the operation of the newly enact<Ml impost
on cigarettes, which bec(»mes etTective duly 1. A briet
«iuesti(m period followed and immediately thereafter
th<' distributors of the State enthusiastically decided
to foiin a vigorous State oiuanizati<»n.

The followimr were elected as officers: President,
H. .1. Lagonegro, Flimra Toha<-c<> Co., KImira, X. ^ .;
viee-presidi'id, David tii(»>s, ( ". .1. Donovan-Haas Co.,
P»utTalo, X. v.: treasurer, n. B. .Mcintosh. .loiu's-.Mcln-
tosh Tobacco Co., Syracuse, X. V.: secretary, Irving
Xe--, luisenbamn-Xos, .Xewburuh. X. V.

Directors. .lanie- Deai-tvne, Dearstyne P.to-. To-
bacc(. Co., Albany, X. V.: Fred F. Owens, Home To-
bacco Co., Himie, X. v.: Martin Duggan, Watertown
Dist. Co., Inc.. Watertown, .\. V.: C. (i. Marousis, C. (J.
Marousis < 'o., b'ochester, X. V., F. <i. Slauson, Bing-
hamton Tobacco Co., P.inirhamton, X. V.

New York Re-enacts One Cent Tax

K-ENACTMFNT of the one cent per package
cigarette tax by the Xew York City Council
I' on dune 'Jtt wa- a severe bhiw to the tobacco
retailers of the city.
Beginning duly 1, they are confroiit«d with a three-
cent cigarette stamp tax— two cents State and one cent
local. Briefs j»res«'nte<l in opposition to the tax by
Kric Calamia, president of the Retail T<»bac<o Dealer^
Association of America, ami H. K. Allmang, n'i>nsent
ing the National Association of Tobacco Distriluitors,
were potent, though inetT<'<-tual in preventing its re-
enactment, and are here published for the record.

By Khic Cai.amia.
Ab representatives of more than 4(MMMJ tobacco
rc»tailers in New York City, we urge, witli all the force
at our command, that the City Administration adopt a
tax program which detinitely ami completely eliminates
anif (uiditiomU ta.ns on the sale of cigarettes. We, the
purveyors (d' cigarettes to tin* consumers in New ^ ork
City liavc been subjectetl, for over a year, to a one cent
per package City ('igarette Tax that has placed our
business on a precipice, held Imek from tt dt)wnwaril

Juiy. tyjv

plunue bv the cord of human per-«e\erance. The New
York State Fe^i>lat<us by einntinu a tw(» cent p«r
package cigarette tax etTective .Inly 1, VXWK have ap-
parently decidetl to te>1 and -tiain thi^ eiiduraiK-e to
it> very limit, certainly not a liappy outlook for the
retail tobaccn dealer who ha> becume a target for un-
rea>onable and unjust tax buj'dens.

Our members are too luisy wm-king 14 to IH hours
,, (i.|y — .s«.ven (lays a week in order to kee|i their busi-
nesses goinu: and hence .Mre unable to come <lown t<» you
en masse to express their utter hopelessness ill the
future ahead for them. We a>k you to seriously con-
sider the fair and reasonable ie<|ne-t> iA' some 4tMH»0
retailers and irill.nP" <>f their <leiiendeiits.

It niu>t be appreciated that the ureal bulk of cig-
arettes are consumed by tlu' nia>-es— by the poor, the
iiiH'inploved and those least able to bear a heavy tax
burden. " WIhmi it is c«»nsidered that each package of 20
cigarettes will be subji'ct, after duly 1. \'X\\), to a total
tax of He—fic Federal and -«' State, the enormity of
which is further indicated hy the fact that the man who
smokes a pack of ciuaiette> a day will pay $21.!H) a
year into tlie Federal Treasury and an a(Ulitional $<..''U

to the State, then the injustice of auif ad(Ution<il City
fiirarette tax to increase this k)ail becomes ck'arly ap-
l)arent.

A package of eiuarettes is. a peculiar connnodity
in the foUowing respects: no other connnodity is so
universally consumed; no other connnodity lias the
juice rehitionsliip to the dollar as has ciuarettes, for it
is the eommodity most easily translated into money ; the
price and chaniies in ])rice of no other connnodity is so
well and so quickly known to the eonsuminii: i)ul)lic as
is the pritH' or thu-tuation thereof cigarettes; no other
connnodity is subjeet to keener competition than cigar-
ettes: no other connnodity is nH)re susceptible to the
employment of "loss-leader" methods than is cigar-
ettes.

The cigarette volume constitutes the greater ju'r-
centage of the business of the New York City tobacco
retailers, and the des})erate conditicuis precipitated by
the one cent City cigarette tax will l)e further aggra-
vated when the one cent City tax is replaced <»n July 1
by a State tax of double this amount. -The ditferenee
of 2()c a carton of ten packages, the result of the State
levy, ])laces the retailers in New York City at a decided
disadvantage, for the retailers in neighboring states
will be in a ])Osition to sell cigarettes at considerably
lower i)rices than the Xew York City retailers with the
consequent loss of a tremendous amount of their cig-
arette volume. This ditTerential in price will likewise
encourage the retailers and others in neighboiing states
to solicit and carry on, through the C. S. mails, a large
cigarettes l)usiness with consumers in Xew York.
Should the City inq»ose any additional tax on cigar-
ettes, then this conq)etitive disadvantage will increase
in sco]>e, for the city dealers will be faced with a loss
of business not only to neighboiinu states, but also to
connminities on the outskirts of the city.

Furthermore, because of the hiirhly conqjctitivo
character of cigarettes and their susce])tibility to cut-
price ])ractices, the tobacco retailers of Xew York, will,
most assuredly, be confronted with price-wars and tlie
like with the resulting gravitation of cigarette prices
to a level that will threaten the veiy existenct' of retail
tol)acco dealers.

As has been your practice in the past to exiMupt
cigarettes from the application oi tlie 'J per c«uit. sales
tax because of the inqM>sition of the one cent per pack-
age tax, we respectfully beseech you to contiinie this
exemption, especially, in view of the fact that with the
expiration of the one cent tax on June 30 we shall be
confronted with a two cent jxr package State tax, and a
sales tax iin|iOSpd on top of this would ]iroduce a bur-
den that, in and of itself, will be a> great a hanlship
as a (me cent stanq) tax.

You nmy wonder why we jilace so much importance
on the volume of our cigarette sales, since the mark up
is so small — vet the sale of cigarettes is al>snlutely in-
dispensable to a tc>bacco retailer if he is to ctuitinue as
such, for it gives him an opportunity to regain some of
his cost of doing business. H««duce Ids cigarette volume
and he is faced with the alt<'rnative of adding other
items to his store to keep up the traffic count, such as
luncheonette, soda water and wearing a]»parel or go
out of business. We believt* that the resiionsilnlities
of a government are more than just the protc^ction of
life and pro|»erty I am sure it is also your desire to
provide you** constituents with ecjual opportunities to
transact their businesses.

We have presented this issue, several times in the
past but never have we had to contenqilate s(» gloomy

a future in the shadow of the tax measure now before
you. We hope you will accord us every consideration
to the end that you nmy determine in the just interest
of these many thousands of people that we plead for,
that anif additioval cigarette tax on top of the State
Taxes will be harmful to the welfare of the New \''ork
City tobacco retailers and unfair to the millions of the
City's consumers to whom the cigarette constitutes
perhaps the only solace, comfort and relaxation that
they might afford to enjoy.

By H. E. ALLMAN(i.
While we fully symi)athize with the serious unem-
l)loyment and relief jjroblem persistently facing this ad-
ministration, we nmst, gentlemen, on behalf of the
Wholesale Tobacco Distributors of Greater New York,
comprising a membershi)) of 200 wholesalers, and em-
l>loying over ;^,()00 employees, which includes sales-
men, chautTeurs, helpers, shipping room crews and
office personnel, register a protest against the proposal
1o continue the New York City tax of Ic per each pack-
age of cigarettes after July 1, 1939.

We are i)rofoundly in sympathy with the emer-
gency relief problem confronting our great city. While
we realize that denunciation of a proposal without the
offer of a constructive substitute may seem unfair, we
must admit our inability to otTer a substitute and con-
line ourselves to a demonstration of the fact that the
particular ])roposaI under consideration is the worst
possible solution because of its inherent injustice.

Since the State of Xew York has seen fit to enact
legislation, taxing cigarettes Ic per each 10, or 2c on a
package of 2(), to become effect ive July 1, 1939, and the
Federal (Jovernment already has a tax of (ic per pack-
age of 20, it would seem to us that this comnKKiity will
be already overJ)urdened with taxation.

If New York City should further saddle this merci-
lessly exploited i)roduct, then we risk the ])ossibility of
a consumer's rebellion — thus seriously jeopardizing
consunq)tion.

You must also consider another thing. The use ot
cigarettes in the Cnited States has grown considerably
in the past decad«'. It is no longer a luxury. It is almost
classeil as a necessity. In a family of five persons,
three or four of them are cigarette smokers. It is not
unusual to find a man or woman smoking several cig-
arettes between courses at lun<-h or dinner. Cigarettes,
we find, are an inseparabh* and integral part of the bud-
get of the average family — poor and rich alike. Of
course, we are concerned here particularly with the
poor. The city has commendably seen fit to exempt
from the 2 per cent, sales tax foods and meals costing
less than ^l.tK), which would seem to indicate that the
city felt it should not imi)ose any further hardships on
the meagre budgets of the families of modest income.
You nmst, therefore, realize that the imposition of this
additional Ic tax would nianifest a serious new burden
on the families in the smaller income brackets.

You may say why worry about any t»f the above.
The retail storekeejM'r will assume the burden and will
not pass the tax on to the consumer. Heaven forbid.
This would be the last straw that would break the
eamel's back.

I am convinced that I can my without fear of con-
tradiction that the addition of the 2c State tax and the
proposed continuance of the Ic City tax will mean ruin
to countless thousands of small retailers who are now
struggling seven <lays a week» eighteen liours a day, to
derive a dismallv modest and below normal livfdihoocl.

(Continued on Page, lot

May Was A Swell Tobacco Month

All Classes of Tobacco Products,
WithoMt Exception f Shared in the
Increases; Cigars Up Nearly 13 X

F THERE had been a few more months like
May of 1939, there would have been a different
storv to tell about the first eleven months of
the 'fiscal vear. The Supplement to the To-
bacco Barometer of the Tobacco Merchants Association
shows increases in that period in total cigars, cigar-
ettes, snuff, chewing and smoking tobacco, and they
were small gains indeed, but shows sizable losses in
little cigars and large cigarettes.

To begin at the beginning and go down the line:
U S cigars of all classes totaled 4,782,O26,r)0/, as
compared with 4,675,843,525, an increase of 106,183,-
08" or 2 27 per cent. P. I. withdrawals, however regis-
tered a loss of 15,802,951, or 8.65 ixm- cent, and P. K a
loss of 8,(590,875, bringing the grand total up to 4 .luO,-
477,666, as comi)ared with 4,868,788,410, a gain ot 81,-
689,356, or only 1.68 per cent.

Class A alone, of U. S. cigars was able to roll up
an increase. Its total of 4,250,837,685 compared with
4 1(K),605,380, an increase of 150,232,305, or 3.66 r)er
<-ent In this class, the P. I. loss of 15,388,595 and the
P. H. loss of 8,354,275, brought the net gain down to
2.1 >5 per cent.

Product

Cigars :
Class A —

United States . .
Philippine Island-
I'uerto Rico . . . .

May. 1939

20.480.575

+

53,(»7 5,925

14.f)3U,8lO

+

301,045

179.750

10,050

Increase or Decrease
Quantity Per Cent.

14.03
2.11

Total 435.291.135 +

53,907,520

Class B—

United States

IMiilippine Islands ..
I'uerto Rico

Total

Class C—

United Suites

Philippine Islands .
I'uerto Rico

To«l

Class D—

United States

Philippine Islands .
I'uerto Rico

Total

Cla»« E —

United States

Philippine Islands
Puerto Rico

3.690,000

5.153

28,500

804.097

1.747

22,50<J

3.724,253 —

783.344

43,442.484 +
19.644 —
26,050 —

35.502
lO.oOO

43.488.178 -H

907.168

2.W»5.905
1,200

430.458
4.m0

2.607.105

435.558

299,934 -I-
loO +

47.412
124

Total

300.094 -I-

47.536

• • • •

14.1S

17.89

17.38

2,24

2.13

13.90

14.04

18.78

18.82

Heaviest loser in percentage was (Mass 1'. The
r. S. total of 42,812,749 was 7,(594,527, or 15.23 per cent,
below the fii^nire of 1938. The ])ercentage of loss was
raised to 15.81 bv the P. I. decrease of 225,851 and the
P. H. drop of 160,200.

Heaviest loser in quantity was Class (\ The total
was 452,100,318, as compared with 484,613,738, a de-
eline of 32,513,420, or 6.71 per cent. This was increased
to 6.75 i)er cent, bv the P. I. loss of 63,254 and the P. R.
loss of 179,900. ' . ^

Second to Class B in percentage and m quantity ot
loss was Class D. Its total was 32,335,585, as compared
with ;i'),80l,665, a drop of 3,446,080, or !).68 per cent,
which was raised to 9.99 per cent, by the combined P. I.
loss of 148,797 and P. R. gain of 3,500.

Class K total of the V. S. product was 3,94(),2<0,
as compared with 4,315,466, a loss of 375,196, or 8.69
j)er (^nt., which was reduced to 8.14 per eeiit. by a P. I.
gain of 23,456.

Cigarettes totaled 151,415,419,734, as compared
with 14!>,759,r»74,695, an increase of 1,655,745^039, or
1.11 per cent.

Following are the comparative tiuures:

Product

Ti>tal All Classt>:

United" States ...
Philippine Islands
Puerto Rico ....

May. 1939

470,579.558 4-

14.o5o,9(.7 -H

234,300 4-

Increase or Decrease
Quantity Per Cent.

5.^.442,052

259,720

1,55U

(irand Total 485.470.825 + 53,703,322

12.81
1.80
0.07

12.44

Little Cigars:

United States

Philippine Islands .
Puerto Rico

Total

Cigarettes :

United States

Philippine Inlands ,
Puerto Rico

Total

Large Cigarettes:

United States

Philippine Islands
Puerto Rico .....

Total

Snuflf (lbs.):

All United States

Tobacco (Chewing and
Smoking) lbs.:

United States

I'hiUppine Islands

Total

16.350.100

2.664,380 19.46

l6.356.nK) + 2.664.380 19.46

15.445,195,753 4- 1,021,545,133
154.330 + 51,070

332.(iOO — 35,200

7.08

15,445,f.82.f.83 + 1,021. 56 1.{M)3

7M

333,000 +

99,678
"30,456

42.72

333,000 +

09,228

3.525.026 +

404.526

20,973,918 + 1,173.892

26.973.918 + 1.173,888

26.25

12.96

4.35

4.SS

Tkt TobMco W0Hd

July, /yj9

Withdrawals Ahead for 11 Months

Encouraging May Business Helped
to Maintain Small Gaines in Cigars,
Cigarettes, Snuff, Chewingf Smoking

it

LI'S siuns run riot in tlio re])()rt of eiuar with-
drawals for May, as n-corded in tlu' Sunple-
inent to tlio Tobacco I>aroni('tcr of the Tol)ac'co
Merchants Association of tlic V. S. In total
U. S. tiunrcs there are six chances for a phis or minus,
to indicate increase or (U'crease as conij>ared with the
eorrcsiKindinii month last year. Every sinule one of
thcni was a i)lus. In tlie various classes of ciuars, there
are five such chances, and thiee of tliem aie ])lus. In
fact, the urand totals of all classifications of tobacco
products also show an increase in each case, so that
takinu the total number of simis, we find an aecunuda-
tion of 22 plus-esi iu the reixnt.

Ciirars of all ehisscs totaled 47O,r)70,5r)8, as com-
I)ared with 41 7,1. S7, .')()(), an increase of r):?,442,(>r)2, or
12.81 i)er cent. To this the Philippines contrilmted a
^ain of 259,720, or 1.80 pvr cent, and Puerto Kico a
gain of 1,55(1, or 0.()7 jjer cent, ])rinu:inir the grand total
up to 485,470,825, as com])ared with 431, 707,503, a rise
of 53,703,322, or 12.44 per cent.

Class A alone totaled 420,480,575 of the U. S. prod-
uct, ac compared with 3()t),804,G50, an advance of 53,-
675,925 or 14.63 \wr cent. The Philippines registered

Ut 11 Mos. Increase or Decrease

ProdiKt Fiscal Yr. 1939 Quantity Per Cent.

Cigars:
Class A—

United States 4.250.837.(,85 -j- 150.232,305

Philippine Islands ... Ifj0,227.135 — 15.388,595

Puerto Rico 976,850 — 8.354.275

Total 4,418,041.670 -f 126,489.435

Class B—

United Statt- 42,812.749 — 7.694.527

Philippnic Islands ... 79.819 — 225.851

Puerto Rico 152.9O0 — 160.200

Total 43,W5.46« — 8.080.578

Class C—

United States 452.100.318 — 32.513.420

Philippine Island^ ... 273.802 — 63.254

Puerto Rico 496,950 — 179.9(K)

Total 452.871.070 — 32.756.574

Class D—

United States 32.335.585 — 3,466.080

F'hilippine Islands ... 209.755 — 148.797

Puerto Rico 3,800 + 3.500

Total 32.549,140 — .V.l 1,377

Class E—

United States 3.940.270 — 375.19?,

Philippine Island^ . . 30.048 + 23.546

Puerto Rico

Total 3.970.318 — 351.650

8

3.66
8.47

2.95

15.23

15.81

6.71

6.75

9jS

9.99

8.69

8.14

a gain of 301, (145, or 2.11 per cent., and Puerto Kico a
decline of 10,050.

('lass C increased a matter of 804,097, or 2.24 i)er
cent, in the V. S. product, while tlie Philippines and
Puerto Kico each figured on the wrong side of the gain
or loss colunm in this class to a combined dilTerence of
46,102.

Class K also showed an increase, the V. S. total of
299,934 comi)aring with 252,522, an advantage of 47,-
412, or 18.78 per cent., and the Philipi)ines figure of
160 cigars coujparing with 3().

There was, however, a di.scouraging drop in (Mass
H cigars. The V. S. total was 3,690,(U)0 as compared
with 4,494,697, a decline of 804,097, or 17.89 per cent.
The P. I. withdrawals also dropped, from (),900 to 5,153,
while the P. K. withdrawals advanced from 6,000 to
28,500.

Class 1) likewise declined, from 3,096,423 to 2,665,-
965 in the V. S., a loss of 430,458, or 13.90 pvr cent.
P. I. droi)i)ed from 6,000 to l,2tX), and P. K. from 300
to nothing.

Cigarettes piled u]) a total of 15,445,195,753, an
increase of 1,021,561,003, or 7.08 per cent.

Following are the comparative figures:

I St 11 Mos. Increase or Decrease

Product Fiscal Yr. 1939 Quantity Per Cent.
Total .Ml Classes:

United States 4.782.026.607 -f 106.183.082 2.27

Philippine Mand^ ... l66.820.559 — 15.802.951 8.65

I'uerto Rico 1.630.500 — 8.690.875

Grand Total 4,950,477,666 + 81,689,256 1.68

Little Cigars:

United States ....... 14<,.997,833 — 14,815,549 9.16

Philippine Islands ... ••••

I'uerto Rico — 796,680 ....

Total 146.997.833 — 15.612.229 9.60

Cigarettes:

I'nited State- 151.415.419.734 -|- 1,655.745.039 Ml

Philippine Islands ... 1.939.237 -|- 1.371.074

Puerto Rico 4,4.?5.180 — 82,820

Total 151,421.794.151 4- 1.657.033.293 1.11

Large Cigarettes:

United States 2.338.168 — 403.322 14.71

I'httippine Islands ... 1.121 + 100

I'uerto Rico 206.261 — 47.289 18.65

Total 2,545.550 — 450,511 15.04

Snuflf (lbs I :

All United States ... 35.228.239 + 1,242.331 366

Tobacco (Chewing and
Smoking) lbs.:

United States ...... 277,358.035 -|- 4.533.713 1.66

Philippine Islands ... 153 + 95

Total 277,358.188 -|- 4.533.8M 1.66

Tiimn

r

wimiiuHnlmiHimrii
LUCKY STRIKE CICAWTTES

l««K-S?l\j.

.49

Have a Look at LUCKIES
in the Making

... at the New York World's

Fair exhibit! See every step

"from seed to cigarette"!

To a tobacco man, the high point of the
New York World's Fair is the only buiW-
ing representing cigarettes- the American
TobaccoCompany 's building... andyo«*r«
invited to visit it.

It's your chance to see Luckies actually
being made- pouring in an endless stream
from big, modern machines brought from
one of our factories, with a skilled crew
in charge.

Many other interesting exhibits, too

showing the "life of a Lucky" from

seed to cigarette. By all means visit the

Lucky Strike Exhibit at the New York

World's Fair.

J/u/ <Jfu

C\

%^-v^^-

7n/o€tu^

Copyrtgfat t»*. Tte

I Tolwcco Company

V

The Toltafco ^Vorid

July. /g?y

POPULAR LEADERS

By P. Lorillard Co

BEECH-NUT

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LEADER

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ROCKY
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SENSATION
20 for 10«

BETWEEN THE ACTS

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OUR HIGH-GRADE NON-EVAPORATING
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and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

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

FRIES & BRO., 92 Reade Street, New York

LORILLARD ADDS 5 STATIONS.

Effective July 4, the P. Lorillard Company will
add five ntations to the XBC-Blue network now carry-
ing Robert Benchley's *'Melody & Madnesn." This
brings the total number of .stations airing the program
on Tuesdays from 9:00 to 9:30 P. M., EDST, to 105.
Added stations are WFEA, KGBX, KROC, KFAM and
KTSM.

NEW YORK RE-ENACTS TAX

(Cont'umed from Page 6)

Why force him out of business? Haven't we enough
unemi)loyment -without adding to it!

And these are the retailers who are indebted to the
wholesale tobacconists in excess of $5,000,000. Our
position is jeopardized if a number of them fail.

When the retailer ceases to pay the distributor,
the latter faces un])leasant possi})ilities. When the dis-
tributor, due to his inability to collect his outstanding
accounts from the retailer, cannot discharge his ol)liga-
tion to the manufacturer — what will happen f There
will be economic conflict, receiversliips, and licpiida-
tions — all contrilnitive to further unemployment.

I could refer further to the fact that a great deal of
volume from New York City will be diverted to ad-
jacent communities but I am confident that others will
dwell on this situation.

Under the present Ic City tax, you have exempted
cigarettes from the City sales tax. Tnasnmch as the
new State tax will be twice as nmch as the present City
tax, there is double the reason why cigarettes should
continue to be favored with exemption. To discontinue
tlie i)resent City stamp tax and permit cigarettes to re-
vert back to the sales tax, would be extremely foolish,
both from the standpoint of the City and those who sell
cigarettes.

I, therefore, a])i)eal to you with all the emjihasis at
my disposal to abandon the City stamp tax and exempt
cigarettes fn»m the City sales tax.

to

CAMEL ON BOTH NETWORKS.

For the first time in its bioadcasting history, the R.
J. Reynolds Tobacco Company will continue throuirhout
the summer to advertise Camel Cigarettes and l*rince
Albert Smoking Tobacco on two half-hour programs
over the Columbia network. Talent on both programs
will be changed from the present lineup, but time and
network remain the same. A radio adaptation of
*'Blondie," the widely syndicated cartoon strip, re-
I»laced Eddie Cantor's "Camel Caravan" June 27, and
Bob Crosby takes over Benny Goodman's session July
3. Chic Young's *'Blondie," the serialized adventures
of the Dagwood family, will be broadcast over Sl» CBS
stations Monday, 7:30-8 P. M. Crosby will entertain
listeners to 87 Columbia stations Tuesday, 9:;M>-10
P. M.

The company has signed a year's contract for 80
stations of the NBC Red network, effective July %
when they will present Benny Gootlman and his swing
band in the opening series of the ** Camel Caravan" on
NBC. The program will be heard every Saturday
thereafter from 10:00 to 10:30 P. M., EDST, in the in-
terests of Camel Cigarettes. Louise Tobin, 20-year-
old Texas vocalist, will be featured in the new series, as
will the Goodman Trio, composed of Goodman with his
clarinet, Lionel Hampton at the drums and Fletcher
Henderson, front-rank band leader in his own right, at
the piano.

The Toltaiiu World

mean one and the same
thing to smokers . .AND

c. H. p.

< agar Co., Inc.
Phila.-P*.

Tli« Chart of •mokitij •njoym«nt. Follow th«
•■MildnaM" and "TrMt*" ltn«fc

J^r real enjoyment

mean a profitable high-
grade business for you!

Who's Champ Tobacco Auctioneer?

HE tobacco belt is taking on the noises of Babel
these warm summer evenings, as tobacco auc-
tioneers in five states tune up their mysterious
chant. They are looking toward the first
world's tobaccii au<'t'ioneer ehampionship competition,
which is to be held in Wilson, N. < '., .Inly IH, in con-
nection with tin* Xorth Carolina tobaeco festival.

There are not so many people in that highly si>e-
cialized vocation, but what has addetl to the strange
sounds is the correlative contest for anuiteurs, novices
and any others who want to learn the tongue-twisting
and ear-baffling sing-song. Not only in Wilson, but in
other tobacco towns of the state, youngsters— boys and
c^irls— and older folks besides, are filling the night with
The jargon which is a p<-culiar feature of tobacco auc-
tions.

Dozens of the best auctioneers in the business are
expected to partici|)ate in the contest, and no one knows
how many amateurs are nursing aching tongues and
strained farvnx as thev prepare for tlieir own contest.
Champions In tath classes will be awarded trophies,
and judging will not only he on basis of *'intelligibu-
itv," but also **eve action" and "hand action."

'' Wilson feels* that tf»o lonir the tobacco auctioneer
and the peculiar talents of his calling have been neg-
lected Selling one of America's irreatest crops m a
few months, with every pound of it exannnwl and
iMjught directly from the floor, is a jnb ealhng tor dis-
patch and skill A "goml" aucti<»neer is one who can
stand the pace, who can siuK his song rapidly, and yet
make himself understotnl by bidders. He must also

/•if, t9S9

catch every bid with his eye (few bids are vocal — most
of them are l)y devious and obscure signs), and yet
he must not dally. There are, therefore, good auction-
eers and })ad ones. Wilson aims to crown the best of
them all.

The auctioneer is the most pietun'sjjue figure in a
romantic selling method. His apparently inane warbling
is really the current bids, repeated so rapidly that only
experienced bitlders can follow the prices, these bids
interposed with a few vocal "fillers" of no significance
except to maintain tempo and wind.

In the selling season, which ojn'iis in July and ex-
tends until around Christmas (moving from belt to
belt), the auctioneer walks down long lanes of loose-
leaf tobacco arranged on flat baskets selling the piles
of tobacco about as fast as a man would walk slowly.
In a busy day, an auctioneer will walk ten miles down
those lanes, and utter no one knows how many million
syllables. In large houses, the auctioneering is split
between two men who rest alternate hours.

Members of the craft are a wandering tribe. They
move into Georgia to open the season there, where the
crop ripens first, then move on into South Carolina,
thence to North Carolina, Virginia, Kentucky, and
Tennessee. Most of them are North Carolinians, be-
eause this state raises 70 per cent, of all flue-cured to-
bacco grown in America, and tobacco auctioneering is a
profession ancient and honoretl throughout Tar Heelia.
A retired tobacco auctioneer generally is accorded the
popular title of "Colonel."

11

NOW...FOUR EXTRA COUPONS

in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamson Tobacco Corporation

EEP plenty of King Edwards on hand. Avoid
misted sales. Stock up with the handv Ten-
pack, the big summer seller that raises unit sales —
ten big King Edwards for a quarter.

JNO. H. SWISHER & SON, INC.

C^ar Manufacturers .... JACKSONVILLE, FLORIDA

CIGARETTES ON NBC.

Begiiiniiiir .Tune 19, revcnut' from tiiran'tti' ac-
counts with XBC iiicT«»ase(l H,'),*! per cent, in the hist five
year.s. In VXH, XBC's revcmie from ci^iirette accounts
averaged ^ll,.').')** pi-r wt-ek; it now totals $1(MI,936.

A breakdown of the r«'Venuu from cigarettes ac-
counts now with XBC foHows:

I'hilip Morris $ 10,220

Lorillard — Sensation 8,820

Lorillard— < )hl (iohl 9,6(K>

American Tol)acco LiK-ky Strikes 1!MWK)

Brown ^ Williamson — Avalon •■♦'J^^
Brown & Williamson — Kaleigljs & Kools fJj.Vi

Brown & Williamson — Bugler <»,H11

Liggett & Myt-rs — Chestfrtields 35,156

Total

$109,936

u

TOBACCO IS PUERTO RICO'S
SECOND RANKING CROP

OBACCO is now i*uerto Kico's second ranking
crop, whether measuri'd by the value of pro-
duction or of exi>orts. It is exceeded only by
sugar cane. Its eeonomie im|M)rtance extends
beyond the cash income to ])roducers because of the
large number of ])eople employed in its manipulation,
which work is somewhat seasonal. From the time the
grower delivers his crop until it is finally exported or
nuumfactured the tobacco goes through from ten to
twenty oi)erations, one bundle or hand at a time — in
some operations, one leaf at a time.

The jiroduction of tobacco during the Spanish
regime was on a much smaller scale than it is today,
and was rather closely associated with tlu- industry m
Cuba. Both islands were Spanish possessions and
trade was fostered between them and with the mother
country, although a customs duty was applied to to-
bacco i'rom Cuba and Puerto Hieo entering Spain.

The outlet for Puerto Hican tobacco before the
American occujmtion in 1S!>H was therefore confined
mostly to domestic consumption and <'Xi)orts (»f un-
manufactured tobacco maiidy to Cuba and Spain, with
smaller <|uantities to other Kuropean countries, like
France and (rernuiuy. Kxports of tobacco and to-
bacco products to the Cnited States encountered the
usual import duties and were very small in volume.

The cigar industry in Cuba formerly provi<led a
market for a considerable part of the Puerto Rican
tobacco. Although the door to this market was prac-
tically closed as a result of the Sjianish- American
War, the American market was opened. Prior to the
American occupation, it reipiired practically all of the
income from tobacco sold in exterior nuirkets to pay
for the tol>acco numufactures Puerto Hieo bought. A
marked expansion of the production, manufacture and
export of tobacco was made |K)ssible by the removal
of import duties on Puerto Rican tobacco and cigars
coming into the United States, although several yetkfu
elapsed before that expansion became really significant.
(The so-calle<l ofTicial record shows that between
1921 and 1937 the acreage of tobacco in Puerto Rico
ranged from a minimum of 10,0(K» acres in 1932 to
81,(HH) acres in 1927, with corresponding shifts in pro-
ductitm ranging from 50,000,(KK) poumls in 1927 to
i;,(KKJ,(KH) pounds in 1932, tlie average being somewhere
around 25,(HKMMH) pounds. It is explained, however,
that Puerto Rico has no official crop reporting si»rvice,
and that the amounts of tobacco arrived at above ap-

Tkt Tobacco World

Ni**MODiL MINSTRELS

IVItY IMONOAY NIOHT

COAST lO COAST

CBS

ISII VOUI NIWt^A^II VOt lOCAl TIM!)

Tom Howard tayt he'd go
to o/most any lengths for a
pipeful of Model — and he
proves it when he lights
up this one, the daddy of
oil his 846 pipett

pear to be around H,()(MMHH) iiounds under the amount
of tobacco that is accounted for by exi>orts, and manu-
facture on the island and in the United States.)

From this it would appear that the accepted pro-
duction figures are understated, and that the average
annual error may be as much as 8,(K)0,0(H) pounds. On
the other hand there appears to be some possibility
that ijroduction as reported is based on fermented
weights. If this is true the efTect would be to reduce
the indicated average annual error to about r),000,()00
pounds. The base acreages reported to the Agricul-
tural Adjustment Administration indicate that the
acreage figures are too low for the years previous to
the crop year 1934. Acreage and production figures
for that and the succeeding year are based on reports
obtained by the Agricultural Adjustment Administra-
tion and are undoubtedly much more accurate. Actual
statistics are not available for computing the (luantity
of leaf re<iuired in numufacturing operation but in-
formation obtained on the island indicates that 24!,-
pounds of unstemmed dry-weight tobacco is used per
thousand cigars. Reiiuirements for manufacture of
roll-chewing tobacco are almost certainly understated.

Tobacco jiroduced in Puerto Rico falls into three
general classifications, related to topographic and
clinmtic factors. The filler <»r interior tyi)e is the to-
bacco for which the island is chiefly known and re|»re-
WBta probably 9.') per cent, of the total production.
It is grown in the valleys and on the hillsides of the
interior. Although it is" all used for the nuinufacture
of cigars and Puerto Rican cigarettes, the conditi(>ns
of soil, slope, elevation and exi)osure, together with
difTerences in cultural and curing practices, bring about
variations which distinguish the to!)acco from difTereiit
interior sections, and these variations «W reflected in
prices paid. All of it is classified as cigar filler, type
4<;, although some select leaves are used for binder
pur|K)ses. The so-called stan<lard varieties are Vir
irinia No. 9 and Ctuado X. In the manufacture of
cigars, Puerto Kican tobacco is generally blended with
other filler tyi)es, nuunly those produceil in the States.
To some ex'tent it is used straight or blended with
Cuban filler in the better grades of cigars.

The most extensive soils used for the production
of tobacco in the filler district are those of the uplands
derived from tufTaceous rock, which includes most of
the center of the district, and those derived from
granitic rock, which includes the eastern and western
parts of the district. Of the soils develoiKnl from the
weathering of tutTaceous rock, those of the Mucara
.series predominate.

July, ig^tv

SPRUCE LUMBER

for CIGAR BOXES

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

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. J.

EaimbliilMd 1886

'BEST OF THE BEST

ff

Ml

■f

•^^^^ A. SANTAELLA & CO.

Office, 1181 Broadwajr, N«w York City

FACTORIES: Tampa and K0O W»at. Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar ChMts

Novelty
Wrapped

Are Outstanding In
Ouality-Desigu-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
("hicago. III.
Detroit, Mich.

Hellam, Vu.

Hanover, I*a

Philadelphia, Pa

Wheeling. W. Va

13

Tobacco Merchants' Association
Registration Bureau, ^tw''Yo^"cm

Schedule of Rates for Trade-Mark Services

Effective April 1, 1916

Registration, (see Note A), $5.00

* Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

Note A— An allowance of $2 will be made to membert of the Tobacco Mer-

thants' Association on each registration.

Note B — li a report on a search of a title necessitates the reporting of more
than ten (10) titles, but less than twenty-one (21), an additional charge of One
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars
($2.00) will be made and so an additional charge of One Dollar ($1.00) will b*
made for every ten (10) additional titles necessarily reported.

TRANSFERRED REGISTRATIONS

TROPICAL CHARMS:— 31.550 d'. .s I'att-nt Ofticc). I'or cigars.
Registtred January 18, 1927, by J. Munch & Sons Co., Inc., Toledo,
Ohio. Transferred by House oi Munch. Inc., Toledo, Ohio, suc-
cessors to the original registrant, to Consolidated Litho. Corp.,
Brooklyn. X. V.. on May 22, 1939.

JEEVES: — 45,588 (Tobacco Merchant■^ .\.NSociatiun
For all tobacco products. Registered December 2(»
Finlev, Scranton, I'a. Transferred to Harvey's,
X. ^.■. on June 5. 1939.

JEEVES: — 46,638 (Tobacco Merchants Association of the U. S.).
For pipes and smokers' articles. Registered September 30, 1937, by
A. H. FiiiU >, Syracuse, X \'. Transferred to Harvey's, Inc., Syra-
cuse, X. v.. on June 5. 1939.

TOBAOOO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

of the U. S.).

193(., by A. H.

Inc., Syracuse,

Internal Revenue Collections for May

Source of Revenue 1939 1938

May

Cigars $ 1.142,944.25 $ 1,035,450.66

Cigarettes 40,338.447.85 43,273,124.62

SnuflF 034,504.70 5()1,()90.00

Tobacco, chewing and smoking 4,855,305.21 4,(i44,374. 12

Cigarette papers and tubes 134,(>71.43 117,300.()4

Leaf dealer penalties 415.00 1,057.08

*Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue, based on

manufacturers' returns t»f production)

Month of March

Increase or Decrease
Product 1939 Quantity Per Cent.

Plug 4.321.519 — 484.487 10.08

Twist 491.139 + 79.582 19.34

Fine-cut Chewing 423.113 — 78,812 15.70

Scrap Chewing 3.365.273 — 8,042 0.24

Smoking 17.451.168 — 704.307 3.88

Total 26.052.212 — 1,196,W6 4.39

Three Months Ending March 31

Increase <»" IH^mne
Product 1939 Quantity Per Cent.

Plug 11.885.7^ — U34.183 9.41

Twist 1.361.715 + 62.113 4.78

Fine-cut Chewing 1.114,055 — 74.132 6.24

Scrap Chewing 9,708.745 -|- 77.748 0.81

Smoking 47.813.058 -f 669,578 1.42

Total 71.883.339 — 4^,876 0.69

•The production figures are in pounds, and are subject to revision
until published in the annual report of the Commissioner of Internal
Revenue.

Advertising consists in telling who you are,
where you are, and what you have to offer.

<^^>

JESSE A. RLOCH. Wheeling. W. Va 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

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

TITLIUS LICIITENSTEIN, New York, N. Y Vice-President

ASA LEMLEIN, New York, N. Y Treasurer

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director

Head(iuartcrs, 341 Madison Ave., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

ALAN r. DAVLS. Baltimore, Md President

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

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

J. RENZ EDWARDS. Kansas City. Kan Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

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

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

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

TOBACCO SALESMEN'S ASSOCIATION OF
AMERICA, INC.

HARRY A. ABRAMS President

LEO RIEDERS, .^800 Broadway. New York, N. Y Secretary

JACK EDRLSTEIN Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A. HOLLING.SWORTH, 233 Broadway, New York. N. Y President

LOUIS KLEIN First Vice-President

ERIC CALAMIA Secretary

ARTHUR S. MEYER Treasurer

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

ALVARO M. GARCIA President

THOMAS C. BREEN Treasurer

SAMUEL BLUMBERG General Coun»»l

Executive Committee— Alvaro M. Garcia (Ex-officio), Thomas C. Breen, Harley W
Jefferson, D. Emil Klein. Walter E. Popper, Harry S. Rothschild, and Arthur
A. Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

BRUCE G. NEBINGER, Red Lion. Pa President

C. M. EHEHALT, Red Lion. Pa Secretary

A. S. ZIEGLER, Red Lion. Pa Treasurer

PHILIPPINE MARKET GOOD.

The Philippine tobacco market was generally good
in April, 1939, with continued heavy exports of leaf
tobacco and fairly satisfactory shipments of manufac-
tured tobacco. April exports were the highest since
March, 1938, due entirely to the heavier purchases of
Spain. Total exports during the first four months of
1939 showed a very satisfactory increase of 105 per
cent, over those of the first four months of 1938. April,
1939, shipments totaled 3,183,000 kilograms, China tak-
ing 47,000, Ilong Kong 10,000, North Africa 51,000,
Spain 2,761,000, and the United States 309,000. Cigar
exports to the United States totaled 11,400,000 units, or
'26 per cent, under those of March, 1939, while the total
for the first four months was 12 per cent, under the like
period of 1938. On the other hand, cigar shipments to
other countries made a very good showing, totaling
over 1,000,000 units, or 78 per cent, over March exports.
During the first four months of 1939, cigar shipments
to other countries were 20 per cent, above those of the
corresponding months of 1938. It is reported that the
harvesting of the 1939 crop is well under way in Caga-
yan and Isabela districts. No further reports concern-
ing the current crop have been received, but the opin-
ion of the trade continues to be that production will be
considerably below normal. (Office of the American
Trade Commissioner, Manila, by radio.)

'4

LtJCKY STRIKE ON 99 STATIONS.

The American Tobacco C*ompany has renewed
"Kay Kyser's College of Musical Knowledge" on 99
stations of the NBC-Rcd network, effective July 5. The
program, which began on March 28, will contiime to
l»e heard on Wednesdays from 10:00 to 11:00 P. M.,
EDST, for Lucky Strike cigarettes.

rk0 Toimeco World

AUGUST

P^¥^

1939

ESTABLISHED
1681

RECEIVED

AUG 3 1939

H^ S. Oip«r1in«nt of Af ficuHun

168 BILLION CIGARETTES
IN 1938-39 FISCAL YEAR

Withdrawals of U. S. cigarettes
reached the sesquipedalian total of 168,-
009,930,747 in the fiscal year ended in
June, an increase of 2.15 per cent, over
the 1937-38 fiscal year. Class A cigars in
ihe U. S. accounted for 4,689,056,100 in
the same period, an increase of 3.66 per
cent. All other classes of cigars declined.
Snuff totaled 38,511,216 pounds, a rise of
3.79 per cent.; chewing and smoking to-
bacco totaled 304,181,828 pounds, an ad-
vance of 1.43 per cent.; little cigars
totaled 160,603,740, a decrease of 8.05 per
cent., and large cigarettes totaled 2,661,-
090, a drop of 9.53 per cent.

I

- ^

I

lluBAKT H. Han KINS — Editor

B^isincss Manufjer — B. S. Piiillu's

...e%'€»r%ivin*ri» v<mi

look

i\l \\\v hrac'ln's . . . here, there
and e^erynhcre it's C^he**lerfiehl . . . for
(Ih«'H|erfiel«l is tlie eigar«'lle thars pood
for more ph'asure . . . Clheslerfii'hls ar«»
tiiihh*r and belter-tasliiiir

more §mo

kers kiioH - # / /

THE TOBACCO WORLD

Vol. 59

AUGUST, 1939

No. 8

(lOOl) i>ul)lic relations in'()«;Mimi lu'iiins at
lu.iiic. Voii cauiKJt cxiK'ct straii,u:('is to liavc a
liiuh ic^a rd for you, ii' tlic iim'HiIkts of your
own family arc not proud of you and of tlicir
association with you. We have had occasion from time
to time in these columns to point out ]»ractical applica-
tions of this fundamental principle of public relations
in the con<luct of the Bayuk business the welfare
work, the Christmas |»arties, the annual distril)ution,
the (hiuces and other affairs of the Sunshine (Mub, and
so on. Now comes the latest illustration of the coni-
panv's solicitude for its woikers an annual vacation
with pav f<»r all factory employees. At the beirinninirof
duly, for the first tim<', more than four thousand work-
ers" beu^an their vactttiuH iH'riods with pay. Orchitis
airain to Bayuk.

V a similarly helpful character was the recent
opeiun^^ by dohn 11. Swisher & Sou, of dack-
sonville, of what is perhaps tlu- first company-
operattMJ nursery for workers' children in the
country, it occupies the entire top floor of the huuc
plant, is air-c«»nditioned, with kitchens, >leepintr and
recreation rooms, and is desiirned to acconnn<Mlate KK)
cliildren, under normal ((Uiditions, as many as IT)!) in
an emerirency. The nursery will be opc-n twenty tour
hours a (lay, seven days a we«'k, and mothers will bo
permitted to leave their <-hildren on Sundays as well as
weekdavs, and trained nurses will be on <luty at all
times. "Ab(»ut SO per cent, of all Swisher employees
ar<' women. Children up t(> two years of aue will have
separate sleeping- quarters. ( )ther children will be seg-
re.u^ati'd accordiuir to au'e antl sex, liudimentary school-
inir will bi- "^iven to tin' older irroups, Mrs. Klla Smith,
Swisher's persontud director, conceived tlu" idea (»f a
company-operated nursery six nmnths airo when she
diHcoveiVd that many ?nother-einployee> were boa rdinir
their children at und«'r-privileu:ed homes. The re-ult
was frecjiient si<*kn«'>s and cases of malinitriticm.
Mothers w.-r." often obliired to stay at luHlie, thus los-
lllK valuable time from their johs.

XK <d" tlH' unusual .Maiduittan si«rhts for vis-
itor, to til.' Worhl's Pair is the 'M'ircus," cur-
rent feature of the Uld Gobi animated-cartoon
siirn at Forty-third and Broatlway and de-
scribed as" the Ix'st lind most popular outdoor show
Broadwav hn« ever srm. As in all circuses, trumpeterH
announce its arrival and drum majors open tln' per-
fonnanee, which runs throuirh tw*'idy ditT*'rent acts.
In addition to the usual '*bi- top" ^^tunts, includiuir a
wild aninud act, trained si'als, a flymir trapeze and
hi«rh-wire act, tlie electric show features an aniusinyr

panda an<l ;i flea circus, which plays havoc with a do.^-.
All tlh' acts are realistic, but the wild-a!iimal and
flyinu'-ti'apeze acts are so uiaphically done that the ele-
ment of danu'er present in I'eal circus<'s makes itsi-lt
felt in the cartoon, and keep> the curbstone audiences
uapin^-, a feat for which the creator of the si^ii, Douii^-
las Leiuh, is responsible. "('ii-cns" is third of the
smies. The fiist was called "Circus Paiade," and th<'
second "Sideshow." P»oth of these included "teas-
ers," heralding the arrival of th«' circus itself, now
curicnt. Like its two predecessors, "Circus" ])lays
niulitly to a capacity curbstone audience. A lonu'
I>i'oa<lway lun is predicted.

FddClTATlOXS to Cart Avery Werner, ed-
itor; Tom Sullivan, business manaiier, and
menduM's of their woikinu oruanization, upon
tln'ir acipiisition (»f the intei-ests of the estate
of the late dohn I'.ain, dr., in our weekly contemporary,
77/r Tohdait Li at. Xew ofhcers of the Tobacco Leaf
Publishing < 'o. are: Mr. Werner, pi'csident : Mr. Sul-
livan, treasurei-, and Kdwai'd V. Durner, secretary.
Carl Wern«'r has been associated with the pul)lication
some forty yi-ais, havinu been editor U)V most of that
ptM-iod, a post which he retains, lie has also been a
partner and secretaiy of the coiporation. Tom Sulli-
van has been (Hi the staff about a dozen y<'ais, servlnir
as business manaucr durinir the last eiuht years. Mr.
Durner is the ofVice manairer and accountant. P. V.
Ilovle, thirty yeai> with the oiiranization, continues in
his dual capacity a- associate editor and assistant iu\-
verti«iiii,^ nuinager, and M. (J. Blauvelt as news editor.

tap^H^BB

XITKI) STATKS tcd»acco cx|iort tra<h- im-
proved its <^eneral fjosition in the rn>t five
months id' 1939 over the correspond inu: period
in 1!>."»S, it is rej)orted by l»»*njamin I). Hill,
chief of the Tobacco Division, Departnunt of ( om-
nicrce. Although total exports of American leaf to-
Imreo for tlu' first five months (»f this year were about
eleven million poun<ls less than ex|)orts of the first live
nioidhs in IIKH exporters noted an increased move-
ment <d' over seveidt»en nullion pounds of British-
iiwned britrht tobacco from warehouses to manufac-
turers in the Cidtejl Kin,sr<l<>m in that perio<l. Thus,
net improvement of the American export positicm at
the end of dune was about six million piunnls. Coni-
parintr exports «d' the first five months of this year with
the corresponding period a year nffo, shipments ^^X
dark Viri^inia increased nearly a million poun<ls;
Marvland and Ohio exports increased al>out 175,(MH)
jiounds; cit^ar leaf increasecl :i**)(),(MM) pounds, and stem
advanced nearly six million p<mnds.

T,. 1X.„AC<0 WORLD ..... ,»., .. ...M...„ b, T....; «.,,,„ C.po,..,.. ».,..„ .. „.„.„. P,..„>.n, ,., T,„„™. -^.^^^'j''; V;«^-^--;^-; J-Jj C,„..

USE NEW TAX AS COPY THEME

IlOVifll most t()])at't'() iiuMi wtMi' uiiiiii over Xi'W
Voik State's new tax on ei^arettes, lejiorts
ThJ( , sonio Tnaiiufaeturt'is used tlie levy as a
eoj)}' theme. Maiiliattan iiewspaiier ads for
R. J. Keyiiolds' Camels (via William Ksty) uave the
hraiid's new national theme a timely loeal tie-in. Sam-
ple: "Smokers: save the eost of the State and eity
eiuarette tax." This thev eonld do hv smokinir
Camels, whieh, the eoi)y deelai'es, hnrn iT) per eent.
slower than the average of fifteiMi other luands, thus
uivinu' "live extra smokes ]>er paek."

Meanti!ui' Br<»wn iJc Williamson Tobaeeo Corj).
♦rot on the ei'onomy hanilwauon with two of their ]>rod-
iicts — Kaleiuh einaiettes, and l-Juuler, a eiuarette to-
baeeo. Said Kaleitih: "This lialeiuh eoupon hel|)s you
pay the eiuarette tax. . . . Retail mereliandise value
of these . . . runs as hiuli as "Ic ]>er eoupon. . . . This
evens you U]> with the new State tax."

Busier, on the other hand, otTei-e*! smokers a hiu:-
irer baruain: "Save He a i»aek on eiuarettes," saitl
they. "Roll yourst-lf 2(> or moie eiuarettes from a
niekel paek of Ruuler and you save ;»c in taxes. . . ."
They otTered besides a speeial introduetory "Thrift
Kit" eontaininu- one roUinu: maehine, two paeks of
Bu<rlor tobaeeo, fiuir books of paper, all for 25 eents.

BAYUK SALES AND EARNINGS MOUNT

Bayuk Cigars Ineorporatetl and wholly owned
su])sidiaries re])ort net earniniis for six months en<lin.ij:
June 'Mn\\ of :fe7.'U,r)fi0.2r) equal, after preferred divi-
dends, to $1.7.") ]>er share on eommon stock a^rainst net
earniuirs of $47.S,29(>.H!> equal, after preferre<l <livi-
dends, to $1.0.") j)er share on eommon stock for same
period of 19;J8. This is exclusive of a loss for the VXW^
period bv controlled company (not consolidate<l)
amountintr to $41M3;ii»a

The board of directors, at the reirular meeting on
July 14th, called for redemption (ni October IT), 1939,
45(H) shares of tin- rj,!»l(> outstamling shares (»f pre-
ferred stock, the necessary fun<ls l>eing jirovidetl from
working capital.

A. Jos. Xewman, presi«lent, stated that sales of
the company's featured brand, I*hillies, were 20 per
cent, aheatl of the first six meuiths of 1!>.'»H with July
orders greater than last July.

TOBACCO SELF SERVE STORES

IIREK new types of cigar stores two in Man-
hattan, one in Philadelphia — lia%'0 been
opened by Schultc Calling up super-nuirket
techniques, they have elindnated counters, ar-
ranged their stock conquu-tly in shelves and bins
around the walls, install«Ml an island cashier stand; in
short, goni' conipletely self-service.

For the experiment S<'hulte simply reniodeletl
some old neigliborliood corner stor<'s, Kach store car-
ries some new lines as well as the gen<»ral run of pijies,
cigars, cigarettes and candy.

To acconunodate these lines and more customers
they have created some 20 per cent, to 25 per cent,
more space by removing the counters an<l streandining
the interior displays. In ingeinously planned fixtures,
painted light gray, even the cigars are open to the
band. (In winter, when the bunndity is low, they will
display the eigars in shifts, leaving each set out fc»r a
day, storing them in humidors for throe days.) Only

cigarettes, doled out by the cashier, are sold from lie-
hind a counter.

In total elTect, expicssed even in the new, neatly
sectioned show windows, the stores have the ap))ear-
anci' of beitig seriouslv in the general merchandise bus-
iness, hav(» the facilities for quick etiicient service.

T'ulc reports that Schulte's har<l-working vice-
pi'csident calls it all a step toward "an innovation in
corner-store merchandising." lie dej)lores the fact
that many men have delegated their wives to buy ])er-
sonal necessities for thenj in department stores, thinks
that once men learn that they can buy (pudity goods
easilv and ciuicklv on sti'cet coiners, thev will start
buying for themselves again. Roth I'cports tlud busi-
ness in the two Manhattan stores has been "very suc-
cessful so fai", " and indicates that if the experiment
continues successful thev will probablv cut others of
their stoics to the same pattern.

BROWN & WILLIAMSON PROGRAMS

Brown & Williamson Tobacco Coipoiation, Louis-
ville, will present Paul Sullivan in a lifteen miimte
news broadcast six nights a week on the Colund)ia
Network starting September 24th. The series will be
heard on thirty-five CBS stations c<»ast to c(»ast nightly
except Satunlay from 11 to 11:15 I*. M., New York
time. Raleigh <igarettes will be adveitised, and the
jMograms will originate in Louisville. Batten, Barton,
Durstine iV: < )sborn is in charge. Brown & Williamson
also sponsors, through Russell M. Seeds Co., Chicago,
a news series on the C(»hnnbia l*acitic Network for
Wings cigarettes. Its title is "News, Views and
Sports Reviews bv Hughes," lu'ard Sundav, Mondav,
Wednes<hiv and Fridav at S:.",!) \\ M. PST.

Other cigarette and tobacco programs on CBS in
the fall will include "Music by Mahu'ck," for Pall
Mall; "Your Hit Parad<'," for Luckv Strikes; Ben
Bernie, for Half & Half; Chesterlield's l»aul White-
man; "dohnny Presents," for Philip Morris; Bob
Crosby and iVlondie, both for Camels and Prince Al-
bert; and "Model Minstrels," on behalf of Model and
Dill's Best.

BIANILA NEWS

The Honorable (^uinlin I*aredes, floor leader of the
Philippine National Assembly, has returnetl to the
islands by clipper flying from San Francisco recently.
Before his visit to tJie I'nited States last May, he was
empowered by tin* Philippine Assembly to investigate
cigar and tobacco conditions in the Cnited States,

riuler the reorganization plan put into effect the
first of .July, the activitii's of the Philippine Tobacco
Agency in New York has been transferred from tlie
War Department to the Department of the Interior.
Dr. (inuMiing, head of the Division of Territories and
Ishuul Possessions, will be in charge.

The sale iif AnH»rican nuide cigaretteR continnes to
lea<l in the Philippines. Native cigarette smokers like
the taste of American grown cigarette tobacco. The
islands buy more American cigarettes than any other
countrv in the world.

Thirty Dollars A Year For Tobacco

That Is What Average U. S. Urban Family Spends

The Tobacco World

11 K annual tobacco exp<'nditure of the average
urban family in the Tidted States is a little
under $.*>(), or nearly as much as the money
spent for all toilet preparations an<l other
forms of peisonal care, twice as much as goes tor
reading materijd and over half as nuich as the cost of
fandly amusements and recreations.

This figure on average annual expenditure of
urban famiiies, tog<'ther with other details of the to-
bacco-consuming habits of the nation has just been
determined by the Commercial Research Division of
The Curtis Publishing Company froni material based
on the Consumer Purchase Survey, made by the
Cnited States (lovernment in fifty one cities.

The study of The Curtis Publishing Company
gives important information, feu- the first time, on
such questions as the relative size of the market for
cigarettes, cigars and other tobacco products, whether
the use of cigan'ttt's and cigars varies with income,
whether familic's at different income levels pay differ-
ent average prices for cigars and cigarettes and the
rate of consumption.

Other Curtis studies, bas«'d on the expenditure
survey, have shown that in every classification the
most dollars an- spent by that half of the population
with the most inconus but the new analysis of tol»acco
consumption is the first which gives information on
the principal factors behincl differences in consump-
tion. It shows:

1. Families with the biggest incomes are lllC
bigg<'st smokers.

■J. Tlu' largest percentage of t«>bacco using fam-
ilies is in the t<)p half of tlu' income group.

:?. That these fandlies with larger incomes pay
higher prices for tobacco.

On the basis ol" the stutly of tobacco expenditures
in fifty-one cities of vaiying sizes, the <'onclusioii is
reached that cigarettes account for alxiut three fourths
of the dollars spent for tobacco products from city to
city. Cigars account for about half of the renuiinder.
The .')(> per cent, of families with the larger in-
comes ar<' the biggi'st buyers of tobacco products, ae-
eounting f(n- more than f(> per cent, of cigan-tte c(m-
sumption in one group of cities ami about the same
in the others. Cigar purchases sln)W a high concen-
tration among those families with the most income.

Presenting detailed results of the stndy, the Com-
mercial Hesearcb Division says that weekly purchases
of ciirarettes averaged <»ver all famiTH's, whether
smokers or not, shows that the half of the population
with the larger inc(»me spends at hast twice as much
as the other half.

A count of noses shows that out of every thousand
families, (JoT in Chicago use cigarettes, 67H in New
York, 555 in an average of six other largt; cities 49o
in an average <»f fourteen midtlle-sized cities and 4.jj
in an average of twenty-nine small cities. The study
shows that there is an even greater contrast within
the small cities, with 560 using families per thousaml
in the highest income group and only 2.'l.'> per thousand

August, Hj^j

in one fourth of the i)oi)ulation ;it the bottom of the
income scale.

With data on the number of packages of cigarettes
bought and the pi-oportion of using families, the study
reaches the conclusion that tlie average cigarette using
family in Chicago buys .").!) packages weekly, in New
York (i.b jiackages; tlie average in six large cities is
.").!) |)ackag<'s; in fourteen middle-sized cities o.o and
in twenty-nine small cities 7)A.

"The general picture^ is one of remarkable uni-
formity from city to city, coupled with striking differ-
entials' by incoiiie level," says the study. "Upper
half using families Imy in the neighl)orhood of a pack-
aue a day or seven a week. Lower half using families
buv between four and five packages a week. Consid-
ering the fact that pi-ice and proportion ot users have
both been eliminatcil, the rate of purchase by using
families remains as the most signittcant factor in the
selectivity of the market for cigarettes."

The figures show that the families in the upper
half income group in Chicago buy two and one-half
packages a week more than the families with smaller
incomes, oi- an excess of 50.8 per cent, over the lower
income families' purchases. The additional purchases
of upper half families in N<'W York and in each of the
city-size groups represents a large additional market
when exju'essed in terms of jiercentages.

"There are more cigarette using families in the
upper half and on the average they pay a little more
per package, but aluive all tlu'y buy more cigarettes
p«r using family," the study of eigaictte consumption
Bavs.

III the study of cigar purchases the figures indi-
cate even higher concentration among upper half in-
come families than the market for cigarettes. The
share of the upjier half tends t«) run over S.') per cent,
of the tt»tal market and falls below SO jjor cent, only in
New York City. The quarter of the population with
tin' highest income absorbs about (h) per cent, of the
tt)tal dollar volume.

"Although the decree of selectivity is higher, the
piincipal selective factors are the same for cigars as
for cigarettes," the report says. "Price, proportion
of Us. MS aii<l rate of |»urcbase sufTice to explain the
difference between up|>er half and lower half just as
before.

"Price is an important factor in the market pat-
tern for cigars. Since the most common price for
ciirars is five cents, it is significant that upi)er half
buyers pay more than tliat, on the average, while
hiwer half buyers pay less. First (piarter families
run above the average to such a degret' as to inake
price a leading factor in first ipiarter concentration.

"Average jnicc shades down as size of eity de-
creases. The difference from city to city, however, is
mainlv a ditTereiice in the first <iuarter. Average cigar
prices paid bv first quarter families range from 8.2
cent* in New York down to 5.4 cents in the small cities.
"The contrast between upper half and lower half
on the basis of actual units purchased is very marked.

(CoutiutUtJ Oil Pdffr 12)

11

GROWTH OF SWISHER BUSINESS

h'n.M .'I liny, one room ractoiy in ISd] to ii
mniiiniolli jilniit in .lacksonvillc, l^'lorida, t'ln-
ployinu' inort' than iMMH) workci-s uiultT one
root' — tliat lias l)(H'n tlic iii-o\vtli of Jolni II.
Swislu'i- tVc Son, hii'.. makers (»t' Kinu* Kdwaitl ciuars.
Till' history ot' tlu' iM»m|»an>' is narrated and illust latcd
in a Iwi'lvi'-jiaiio siipiiiemcnt ot" the Jacksonville .S'//>/-
Xt Hs. Tlu' Ntory is replete with illust lat ions slKtwiiii;'
the original factory, the pi'esent <'stahlishment, wliieh
is said to he the laruest eiuai* factory in the world, and
many other pictnre> of more than passinu interest to
the tiade. The paper is a valuahle addition to cinar
history.

In 1S()1 l)a\"id S. Swisher, a niercliant in Newark,
Ohio, took oNt'i' a small hand factory in lieu of cash
payment ot' a deht, Kimuu that unpromi^inu heuinninu'
has come the ureal, nuMlein, sanitary, sunlit facloiy
tlmt is today Morida's most ini|»ortant sinule manufac-
turinu concern.

The output (►!" the original Newark ])lant was sold
by David S. Swisher as an inci<lental pari of his re«r-
ular meicantile business. He had only a mild int<rc>t
ill the product of his tobacco factory.

Ilowevi'r, he had four sons who thouii'ht the ciuai"
busiiit'ss belli possibilities. They worked hard to
create a deman«l for llu'ir ciuars.

In ISS.') John II. Swisher ami his brother, Harry,
withdrew from tin* family's mercantile business and
purchax'd lli«' ciuar factoiy fidiii theii' father and
br<ttliers. They oruanized tin* firm of Swislier Hi'os.,
wliich prospeied reasonably well on a territorial basii*
for neaily thirty yea is.

In lin.'S the lirm bctann' John II. Swisher tS: Sons
when Carl S. Swisher became a paitner and Hairy
Swisher retired from active participatltui in the biini-
ness.

Another p<*rsonalily who contributed onich to the
suece>>> of tlu' business is II. B. Coulter, tobacco Ituyer,
whose shrewd purchasinii wisdom and market knowl-
ed|ce have \wen ot* great value to the coiiii»any for many

years.

When the i\v^\ practical motlels of the ciuar-
makiiiLc machine wt'ie produced in 1!>'J.'I, .lohn H.
Swi.sher cV Son bouuht their liist machines.

In 1!»2(» the partinMship of .lohii H. Swisher tV: Son
wa.s dissolve<l and the company incorporated umler the
Hame name with John II. Swishei- as president, Carl 8.
Swisher as vice jiresident and ireneral manairer, Mr.
Coulter as secretary, and Mi-. Smith as treasurer.

From ll>2n until l!>.">.'i the eompany's record was
one of consistent «!:r<»wth, with producti<»n hoverin.ir
arounil 1(Mi,(mm>,(mmi a year. TIh'Ii i-ame the depression,
the bank holiday and the irloomit'st period in recetit
economic history.

Abruptly the price <»f Kinu Kdwanl cii^ar wa.**
reduced to two for five eeiits, a maneuver marvelonsly
time<l to take advantaire <>f the national psyclHdo«^y.

In spile of the fact that the XHA labor and hour
requirements increasiMl manufacturing: costs to a point
which forced the sellin,«^ pri<'e of Kintc Fdward to three
for ten cents, the ccmipany faithfully complied with
every pro'viKicui of the ('ode. Boon eanu* undeniable
proof that some other manufacturers, less idealistic and
less co-operative, were taklnif unfair advantaire of the
fair trade pact.

To offset this competition, the pilcc of King Ed-
ward was dropped to two for live cents, and the com-

pany operated prolitless for a while but still maintained
its XIk.\ wauc and hour schedule.

Such, in brief, is the history of John II. Swisher
Company and Kinu Kdward ciuar, which since 1!).'>.'! has
shown a continuous urowlh that has ma<le it one of the
most ])oj)ular cigars in this count i-y.

IMPORTANCE OF TOBACCO INDUSTRY

II K tobacc() indusli'y, probably the <>ldest in-
dust]-y of any size in the Cniled Slates, is more
im))orlanl to the national economy than is
e(mnnonly realized, it is stated in the Indus-
tries Edition of Standard Trade & Securities. In ad<Ii-
lion to substantial ca])it:d investnu»nt in tobacco ])roc-
essinu, tobacco ^rowinu is the chief income source of
a hir.uc ai'ea in the South and tobacco taxes are one of
the chief sources of ^overnnu'iit revenue.

Manufacture of tobacco products is hi^dily concen-
trated. Six lar^e com])ani<'s. with assets of over 7tK)
million (hdlars, have annual wholesale sales of i).")!) mil-
lion (lobars ((Mpud to approximately 1 billion 2i'h) mil-
lion dollars retail sales value). These sales are mainly
eoncentrat<'d in ciuar»*ttes and manufactured tol>acco.
Half d<»zeii larir<' cii^ar nnmufacturers account for
about half of total ciuar output.

The lonu tt'im trend of ciuarette consumption is
still sliuhtly upward, altlHUiuh yearly uains have been
reduced to small tiunres, averauinu from '2-') per cent.,
accordinu to Stamlanl Trades & Securities. The ju'r
capita consumption of all tobac<'o in 1!».'I7 of 7.25 was
still below the 1!»17 level of 7.74 lbs. This sugi^ests
that the possible ciuaretle smokin.u l)ublic is over and
above that ex])ected throuuh a normal population in-
crease.

Despite the concentration of production in a few
hands, leadinu ciuarette comj»anies have avoided the
monopoly complex of restiicted output and hiuh ])rices.

However, in June, I'KIl, the industry, in face of
falliiiir leaf tobacco cosls and steadily diminishing pub-
lic purchasinu power, a<lvanced ci,ii:arette prices to ^G.H'y
t\ thousand (less trade disc(uints), TIm' inmn'diate re-
action was a slumi* in c<insumption not revived until
the introduction of new brands retailing; at 10 cents per
pack of 'Jo. The Hk* brands in a short period trained
J.'i p<r (M'lit. of the ciuarette market and force<l the Biu
Four companies to slash prices at the expense of profits
to regain their position. This eventually led to a res-
toration of prices to just below the level prevailing be-
fore the .Inne, IH.'il, advan<*e.

The effect (if this experience nnikes further price
advances imi»robable unle.'^s a sharp rise in eost^* should
nnike it unavoidable,

American cigarette consumers constantly change
their lirand allegiance folhiwing the pull of tlie adver-
tising, the survey Btates. Around 1I»'J7 Luck Strike
h»unche«i a new aggressixc typ4» of newspaper adver-
tising which caught public fancy. Tin* brand forged
ahead and in IdlU) and WSl far outdistanced its com-
petitors. Subsecpu'ntly, the consistent though conserv-
ative appeal of Chesterfield <'aught popular favor and
for till' years IJl.'l.'l-.'U nnule the best comparative sales
record. Camels abandone«l newspafier advertising in
1!».*»2 with di.sastrous sales results. Kenewal of large
promotional expenditures in 193,'I-'I7 restorecl Camels to
ilie fir.st place in volunn'. Standartl Trade ft Securities
finds it impossible to forecast sales for any time ahead
when the res|)onse of cigarette consumers scH»m8 to de-
pend upon the appeal of new and fresh advertising.

Tht Tahiti rn H'nrld

Cigarettes Up 12.76 Per Cent, in June

Withdrawals Total More than 16*2 Billion;
Class A Cigars Show 3.63 Per Cent. Gain;
Only Chewing & Smoking Tobacco Decline

\Aj classes of tobacco products exce])t chewing
and smoking to])acco registered increases In
June this year, as compared with June, 1938,
according to the sup})lenient to the Tohacr;)
lidrnuirtrr, issued l)y the Tobacco Merchants Associa-
tion of the United States. In V. S. products alone, the
gains ranged from l.!H per cent, for cigars of all
classes to ()1.51 per cent, for large cigarettes. The
advance in cigars, however, was contributed by Classes
A and E, the others showing losses.

As usual, the un-at bulk of cigar withdrawals was
in class A. The C. S. t(»tal was 438,21S,4ir), as coni-
]mred with 422,SS(;,4ir), an increase of ir),:r52,(MH), or
'AXu) per cent. This was reduced by a loss of ;>:>(),()()(),
,,!■ 1>.(>1 per cent., in the Philippines product, and of
l.vSIM) in Puerto Hico cigars. So that the total for
this class, 4r)4,:U8,()r)r), as compared with 4:]9,3r)2,()l."),
showed a rise of 14,98r),4:)n, or 3.41 ]>er cent.

The Class P> total in the V. S. was :U">o;U')!M), as
compared with 4,r)r)4,747, a decrease of !)r)l,()r)7, or 20.88
per cent. P. I. and P. H. dedim's raised this loss to
9(;2,84(), or 21.07 ])<'r cent.

<1as- C withdrawals totaled 41,474,578, as corn-

Product
Cigars:
Class A^ —

I'nitcd States
riiilippitu- I-laml-
Puerto Rico

Total

(la- B—

liiited State« . . .
l'lnli|»pi"f Island--
I'uerto Rico ....

Total

Cla-!. C—

I'ntted States

I'hilippine Islands
Puerto Ri«<i

Total

l tnticl States . . . .
Pliilippine Islands
Puerto Rico ....

Total

United States

rhilippine Islands
Puerto Rico

Total .

Auifust, /y?g

J^, 1939

4:*8,218.415
n..M7.7W

+

■

4-

Increase or Decrease
Quantity Per Cent.

13..U2.tHtU 3.03
3.^«).rrf,0 2.01
15.890

. 454.348.()65

14.985.450

951.057

283

11.500

3.41

2.077
550

20.88

3.606.91^

902.840

21.07

4I.474.57R

7.102

55«

5.025.320
I2.W.0
44.ofK)

10.81

41.482.2.10

5.081,980

10.91

.11.14.2.17
4.fi(W

126.361

5.920
400

3.88

• * * 4

.1.I.W.8.17

132.687

4 00

290.433

48.603

5

20.10

290.433

48.5W

20.10

pared with 4(;,49!>,iM)4, a decline of rj,(>2r),:52r), or 10.81
per cent. Losses in P. I. and P. H. withdrawals in-
creased this ])ercentaj2:e to 10.91.

In Class D, the V. S. pi-odnct reuistered a h)ss of
12r.,:u;i, or :].HH per cent., the total of :^,i:U,2:57 coiii-
l)arin,i'- witli ."»,2bO,r)9S. P. I. and P. K. raised this i)er-
(MMitauc of loss to 4.00.

Only 2!M),4:5:; eii;ars made up the total of Class E,
bnl ibiswas 4S,b03, or 20.10 per cent., better than the
241,s;'0 ill the (•orresi)ondinu: month last year.

All classes of ci.u'ars in the V. S. totaled 480,721,353,
as compared with 477,443,494, which was an advance
of !»,277,sr)!), or l.!U per cent, over last year. This was
rednced t(> 8,S.')r),."j:;r), or 1.79 i)er cent., by a P. T. loss of
34s,!);;4, or 2.12 per cent., and a P. K. loss of 73,:590.

r. S. ciuaiettes totah'd l(;,:)94,r)l 1,013, as compared
with 14,71(;,t".24,94;;, a rise of 1,S77,SS(;,070, or 12.7b per
cent. P. I. cii^^arettes uained r)(;,SOO and P. P. ci^ni-
rctt.-s 109,490.

Little ciirars i^ained r).92 per cent.; larii'e ciuarettes
bl..')! per cent., and simlT r).27 per cent. The mannfac-
tnre<l tol»acco loss was 0.H7 per cent.

Following are the comparative liunres:

Product
Total All Clas^e^~
I'nitcd State-^ ...
I'hili|>pi!U' I-laii<U
Puerti> Rii o

June, 1939

486.721.353 -|-

10.112.169 —

32,960 —

Increase or Decrease
Quantity Per Cent.

'i.277.859 1.94

348.934 2.12

72.39<J

( Irand

Lital

5P2,.S(.*.,482 4-

8.850.335

1.79

Little Ci^'ars:

I'nited State >

Philippine Ulantls .
Puerto Rit c»

Total

Cigarettes:

United States

Philippine Islands
Puerto Rico

Total

I aruc Cigarette-;

I'nited States . . .
Philippine Islands
Puerto Rico ....

13.605,907 -<-

7<)0.294

5.92

13.005.907 -f

700.294

5.92

1(,=;«J4 51H»13 + 1,877.88<..070

82.400 -^ 50.8tM)

550.090 + lo9,49U

10.595. 14.\5()3 + 1,878.1 12.3(.0

M2^)22 -H 122.986
■30;000 -I- 28.200

Total

352.922 -f

151,186

12.76

12.76

61.51

^4.94

■>miff (lit-.):

All I'liitcd States . . .

3.282,977

4-
4-

104,289

237.033

405

236,628

5.27

rohacco (ChewinK and

SnioUitiK) \h<.:

l'iiite<l States

Philippine Islands . . .

20.823.793
405

0.88

Total

26.824.198

0.87
7

n

Fiscal Year Ends With Slight Gains

Increases Registered in Class A Cigars,

Cigarettes^ Snuff, Chewing and Smoking

Tobacco; Other Classes of Cigars Still Lag

BOTT the lu'st tliiiiu- that cnii he .^aitl about \hv
list-al year that ciuU'd in .Iinic is that it was
lu'tti'i- than till' pi-('vi<»us fiscal ycai' for ( 'hiss A
i'iiiars, for fiuait'ttt-s, for snuff, and foi' clicw-
iuif antl sniokinu tol»atvo, l)ut not so i^ood for all the
other classes of cigars, for little citiars, and foi- larue
ei.narettes. This is made evident from a irlance at the
supplement to the 'I't'/xnin luimunfrr ])uhlished l>v
the Tohacco ^^erc]uults A-sociation of Ww ruiteil
States.

("las.- A ciuars of the Tnited States totaled 4.(>S<),-
OoCloo, as compared with 4,.")L':j,4!n,S(M), an increase (»f
1 ().'), 5(;4,:^on, nr :\M pel- cent. A P. I. lo>s of ir),71!),272,
or 7.M4 per cent., and a I*. U. los> (»f S,:57)»,1(m, re<luce(l
this uain to 141,474,sr.;j, or iMMJ jier ct-nt.

In Class B, the l'. S. total was 4<;,41(;,4."!). as com-
l)ared with r>r),(MiL',(i:i;l, a ho- of s.(i4:),:>s4, «»r l.').7n per
cent. This was auunieiited to 1(1.24 i>er cent, hy a 1*. I.
decline of l!2(;,i;;4, and a P. If. drop of 171.700."

The r. S. Class (' total was 4!>:},.")74,s:m;, as <'om-
pareil with ."t"!!,! 1:!.(;4l', a decrease of :;7,r);;s,74(;, or
7.o7 per cent., wliich rose to 7.11 pel' cent, hv the V. I.
loss of 7o,:n4 and the \\ U. ln>s of 224,7)00.

Class I) in the C. S. totaled ;io,4r,!».s22. as com-

pared with :{I>,0(52,:U:), a drop of .V)I)2,r)2:',, or !)-^0 j)er
cHMit. A P. I. (h'cline of 154,723 and a W R. loss of
.noO raised this pei-centa.uc of loss to !)..')().

In Class K, r. S. with<lrawals totaled 4,2:]0,7o:], as
compared with 4,r):)7,2()2, a decline of ;52(),.V)9, or 7.17
jier cent. l\ I. ci.i»ar.s, however, totahMl HUMS, an in-
crease of 2.V)41, so that the net loss in this class was
oOo,018, or (»,(!4 pei- cent.

All clas.scs of r. S. ciuars totaled 5,2(18, 74 7, !)(;«), as
compared with 5,15:5,287,072, an increase of 115,4(10,-
88S, oi- 2.24 j»er cent. The I*. I. <lecrease of l(i,15i,;»02,
<M- 8.11 j.er cent., and the \\ U. drop of 8,7(;:i',2(55', re-
duced the net uain to !M),545,721, or l.(;i) per cent.

I . S. ciuaretles j)ile(l up the stau,u-erinu- total of
l(;8,00!M);i(),747. as compan'd with l(;4,47(;,2!)!M!4o. an
increase of ;;,.').TI,(;:il,l()7, or 2.15 jier cent. This was
increasjMl to a naiii of :>,5:i:;,(i;:i,l07, hy a I*. I. increa.se
of 1,427,874. and a I*. If. increase of 8(;,(;70.

SnulT liained to the tune of l,40(;,(;i!> pounds, or
;i.7!> per cent., ami chewinu* and smokinir tobacco,
4.2!M;,(;,s1 pounds, or 1.4;i per cent. Litth' <-iuars lost
14,8,)1,!».):}, or 8.4(i |»ei- cent., and larue ciuaiettes lost
280,:U!>, or i».5;; per cent.

Following are the comparative fiurnros;

8

Product
'igars:
Clas^ A—

InitcU .Statr- . . .
Philippine l-lafuN
Puerto Rirt. . .

Fiscal Yr. Ending
June 30, 1939

4.'.><M.n5f..l(»0
lK2.,^24.wJ5

. . l.ii''s,7!ii

1

+

+
+

Increase or
Quantity

^.5..^'.4..^(H(

l.%7 19.272

8.37n.l(.5

Decrease
Per Cent.

7.94

Fiscal Yr. Ending
Product June 30, 1939

Total All (.lasM-

rnittil .^tati - .^.2'..^. 747. ''1,(1

Philippim- KlaiuU ., IHJ.w.^JJjs
I'uerto kint 1.f.< ,\4'.ti

Grand Total ..... 5.4.=^.\.U4.1 48

-i-
+

4-

4-
4-

4-

+

Increase or
Quantity

lt,^.4f»0.«88

l'..I51.wiij

8.7 \2 .5

9II.545.72!

Decrease
Per Cent.

2.24
8.11

Total

4.872,3«9.73S

141,4~4.8fa

2.99

1.69

I.ittl. I u.ir*!

I'uitfd st.it. - ..... 1 <.(!./,( 1.^.740

Philippitu- Islat.I- . .

Piu rto Riro ,. . .

14.055.273

79<..(.su

cia- n—

I''.i'..l >!.!■
J'iiili|.itint 1-1, iMi,-
I'uertii Ku ... , . . .

15,v45.i

22c.. 134
171.7U(i

15 7.1
16.24

8.05

...»

Total P ~4i»

1 -^ .ill ttr^-

rniticl Stall- 1 >; n(i9.9Jo.747
Pliilipf.'- ' ! ' .• J,(i" '"
Piierti. 4,''

14.851.953

8.4',

Tot.n1

. . 4»..».5JJ85

9(143.418

1.427.874
8f».r,79

(la.- C~

I'tiiti (I Stati
I'liiljlipiiH- I-lair'.

* ' ^ : - .^ *. <

.■>7.5.iH.74<i

7.^.^14

224.^1111

7.117

• < ■ «

2 15

I'lurto kill. .

1 ..tal P.8.(lt',,'J.i7.f,54

I ■' n. .1 -lit, i.f.'.t.OWl

rini, ,.,..■ t . , ,, 1 ,,,

Pnrrtii , 2,^' .2' I

3.535.I45.f.Sl

2.15

TcUal .

494 '- - 1

.\''j2,?2.^
1.^4>2J

7.U

28'i..yu

|<) HSU

29*i.339

C;;,^^ I)—

1 nit. .] -f,,!,
Philippim I-l, III-

214..;5?
3.Hiill

9.20

9.50

9 5.^
7'48

Pm-rti. Rii (. ....

li'tal 2N'»X472

9.36

Total ,..,...

35.f.H7.977

,1744,14..

\1I 1 "lilt, .1 <t..f. ,sN.'1 UI',

14... ..619

i '.,-^ I-;--

4.2.1fl 7»t."^
,W.04fi

2.^!'41

7 17

." 70

1 lil'.rl Stati «. . . , .
Philippine I^laiirh
Pinrto Rii 11

I ( lituin^.' aiid
<iii i 111- ■

r.nt.Ml Still. Iii4.181.«>8

PliilippiiH- I-Iaiich . . 558

4 ■

1.43

Total

4.2f.n.-!;i

Mt^h]H

'.'.4

....

Total 304. is

4.297.181

1.43

.. Unrhl

Cipars are the
ni«9l pleasurable
auci economical
form of smoking.

First hsueJ 1929

B AYUK BULLETIN

Devoi

ed to the

best

interests

of the men who |

sell

cigars. 1

ALGLST, 19.^9

Prepared twice a month

PHULOFAX

{The Retailer's Friend)

lA

SAYS

"He came into my
store five times and nev-
er bought anything else
but two 3c stamps. What
got my nanny, tho, was
that he was always
smoking a cigar and had
his pocket full of 'em.
Nevertheless, I always was very
courteous to him and served him
Willi his stamps as graciously as tho
thiy were a profitable item. Yester-
dav he came in and bought two boxes
0' cigars. It pays to be polite", so
V, 1 lies B. C. K.

Ves sir, Ben, you said a mouth-
ful . , . he was a potential customer
I tde into a positive customer by
yuur being an up-to-date Merchant.

Lots and lots of tourists on the
n.ad.s the.se days, and many a little
bewildered how to get to where they
are going.

M. A. K., a progressive cigar deal-
er in western New York, has a sign
in his window reading "Welcome
Stranger! Drop in for all informa-
tion as to best roads and routes to
where you're going".

M. A. K, reports business good with
him!

OEE -WITH ALL THIS FAIR TRADE -1=AIR PLAY
-^TO SAY NOTHINGr OF A COUPLE OF WORLD'S
FA(QS ^ SOME OF- MS OUGHT TO BE \W A m^^
F^AIC WAY TO MAKE A FAIR LIVING /

— +40W AM I DOme^ BOSS ?

BOSS: You're asking me? I
started off by asking you virtu-
ally that same question — What's
your answer?

OTTO: The Fair Trade Act a
good thing for dealers? Why,
Boss, it's a life saver for lots of
'em if they'll look at the Law in
the simple way you outlined it
to me.

BOSS: Well,
they look at

Sitting on a Bench in the Park.

He — How's business?
Him— Punk — nothing doing at all!
How's iu.-iiK'.^s with you?
He — Rotten — everybo<ly is complain-
ing.

Him— Yeah. e%'er>'body is complam-
ing that busine.ss Lsn't very good.
He^I hear that, too-^yes. business
ain't vury good— what do you think?
Him--I think you're right — business
ii^ vtry poor. At least, I find it so.
He— So do I. Business certainly
could be considerably better.
Him— I should say it couM be better.
becau--e business is pretty bum just
now.

He— Vriu said it.— -business is pMtty
huiii ruiw. But, there's nothing

we can Uu about it!
Him— ("•■'i^f-^ nn» We just got to wait
till liu-.: t:. t , bitter. Ain't that

so?

He— .^ure it's so. Oh, look at that
squirrel with that great big nut in
its paws — wonder where it got that
nut?

Him Finding nuts is the squirrel's
i . I guess he found it 'cause

I. LOOKKD and WOHKKD for it!
.<-' 11.. la are funny animals — they're
: time tending to bui^iness look-

jiig fur nuts!

HE— Looking for nuts? Hey, let's
you and I get out of here!!

"SALES-DOGGLING"

or How Not to Sell— No. 40

otto has a chat with the Boss and says that some dealers
are "terribly dumb*' ... the Boss counters by saying,
"maybe, it's because some of us salesmen are too smart".
But draw up a chair, light a cigar and listen in.

Otto, why don't

it that way? Is

there any o^/ier way to look at it?

OTTO: No, there isn't Boss, but,
you know, some dealers are ter-
ribly dumb.

BOSS: You're wrong, Otto —
dealers are not terribly dumb
and even if .some were, why pass
the buck back to them? Maybe,
they're dumb as you call them
because some of us salesmen are
too smart . . . some of us are so
smart that we fral to realize our
duty as salesmen to explain fully
to our customers any and all
things which will work to the
w^elfare of our customers.

We salesmen should feel we
are a partner of each and every
customer and when we don't
help and assist our customers
we hinder ourselves. Do you go
along with me in that viewpoint.
Otto?

D. B. 1.

rfM^kto W«kM« •/ /itm elgmn itoc* JM7.

BOSS: Otto, what do you hear
of the Fair Trade Act in your
territory ?

OTTO: Fair Trade what? Oh.
yeah, oh yeah. I guess I know
what you mean.

BOSS: I^t me tell you some-
thing. Otto, if you're guessing as
to what I mean, it's a safe bet
you don't know what I mean —
even after all the discussions
we've had at our sales meetings
on the benefits of the Fair Trade
Act to the retailers.

OTTO: Don't get sore. Boss. I
know all about the Fair Trade
Act. It works like this — the
manufacturer sets a re-sale price
on hi.>^ products to the consumer
and then the retailer is compcUtd
to make that price. Isn't that
right?

BOSS: Tf you've got to use that
word "compelled", why don't you
sav that the dealer is compelled
to* take the PROFIT, on that
manufacturer's product, and is
protected hy the Fair Trade Act
to the extent that no other deal-
er can cut the price: but. Otto,
he is not **compelled" to make
I the price or take the profit.

OTTO: Cripes awmitey. Boss. I
don't understand you. First you
bawl me out and now you ball
me up. Under the law. why isn't
the dealer compelled to make
the price and take the profit?

BOSS: Well. Otto, he can just
forget the products of the man-
ufacturer who is trying to help
him make an honest living by
providing an hone.^t profit and
got busy on the products which
provide him neither profit or pro-
tection.

That t%pe of dealer buys a
product at 20c . . . sells at 20c
because the ''fellow down the
street sells at 20c". The fellow
down the street sells at 19c and
then this jjarticular dealer wants
t(» "{irotect his business" and
follows suit 5it 19c. Now, both
dealers are on the same competi-
tive basis and neither has price
advantage over the other and
both lose money.

Now. on a Fair Trade product,
both sell at the same price . . .
neither has price advantage over
the other BUT— and get this,
Otto — both make money.

OTTO: Gee, Boss, that Fair
Trade Act is sure a good thing
for dealers, isn't it ?

OTTO: "Go along with you"?.
Why, Boss, I'm ahead of you
from now on in talking up to my
customers that the Fair Trade
Act means Fair Profit and Full
Protection to them. W^atch my
smoke !

Did you get your gharef

The cigar business is looking
up. Figures for May show a
national increase in sales of
Class A Cigars (5c and below)
of better than 14%.

What was your result in
May? Did you show the same
increase as the rest of the in-
dustry? If so. give yourself a
passing mark . . . just average.

Or did you beat the 14%
mark ? If so, credit yourself with
being ahfvp average as a mer-
chandiser, salesman — and
HARD WORKER.

Phillies

Havana Ribl>on
Mapacuba

Charles Thomson
Prince Hamlet

BAYl'K BRANDS Bl'ILD BUSINESS

Exports of American Tobacco

Wo outstanding features have eliaraeterized
the export trade in United States leaf tobacco
durinu: the post-war period. First, the general
and gradual decline in exports of dark tobacco
~])articularly the tire-cured types, and, to a somewhat
Kss extent, the dark air-cured types; and, second, the
large increase registered in botli volume an<l value of
exjjorts of American thie-eured tobacco durinu- this pe-
riod.

Several factors account for the decline in exports
of American tire-cured and dark air-cured leaf. The
chief (ines were the exiiansion abroad in the production
of the dark types accompanied by an increasing shift in
consumption habits from i)rodiicts made from dark
toltacco to those mamifactured t'nmi light (flue-cured)
tobaceo. This heavy displacement of American dark
tobacco in foreign markets (particularly in P^urope) be-
ginning in the early twenties, ajjpears to represent a
permaiient, structural cliange in tin- trade and little, if
anything, can be done to ameliorate this situation.

The favoi'able develo]>ment n\' (uii- export trade in
tlue-cured leaf tnbaeeo has been in line with the uni-
versal increase in cigarette consumption and the shift
towanl cigarettes i'umi other kinds of tobacco products.
Although a large increase in British Kmpire pr<»duc-
tion iA' tlne-eured toliaccn has taken phwv since 1!)19
und<'i- the stimulusof tariff preference, exports ofAirier-
ican tlue-cured leaf to the Tnited Kingtlom (our chief
foreign market) have cnntinu<'d to increase, owing to
the large gain in eigan-tte consumption there. Our
l)ro|)ortionate share of the I'nited Kingdom's total flue-
cured leaf imjjorts has <h'elined, however, due to the
ilicnased imjjorts of Empire flue-cured leaf.

In view of the circumstances summarized above it
is not believe<! that a irencral program of export sub-
si<lies can lie expected to operate to the a<lvantaLre of
the tol)acc«. expmi trath- of tlu- Tnited States. The
main reasons for this belief mav be summarized as fol-
lows :

In the first pilace, the more fundamental causes
of the ilecline in exports of dark tc.bacco from the
I nited States, jiotably the shift in consumer demand to
cigarettes and the increased production of dark tobacco
in certain foreign cnunfries. rannot be overcome simply
by redncinjr the cn>t <.f American tobacco to for<'ign
consumers through governmental export subsidies.

In the second place, a larire part nf the world im-
I»ort tra<ie in tobacco i^ handled by governmental to-
bacco monopolies, one of the main objectives «»f which
is to encourage domestic tofmccn producticm. In such
cases a subsi«ly on tobacco exports from the T nited
States might temporarily result in some increase in the
share of American tobacco incbnb'tl in the purchases of
foreign tobacco by the government monopolies. But it
could not be expected that the subsidy would operate
to increase the total purchases by the monopolies in
cases where the governments are attempting to encour-
age domestic production. The result of export sub-
sidit's on American tobacco under such circumstances
might be, mainly, a transfer of funds from the Treas-
nr>' of the United States to the treasuries of foreign
countries without any correspond inir increase in the
volume of American t*ol)acco export.s. A similar result
might be expected in a country like Germany, where
the (fovernment dictates the (pmntity of particular
to

products which may be imported. In the German case,
in jjarticular, it is not believed that the i)rice of Amer^
lean tobacco has been an important factor in the de-
cline in imports into Germany ami consequently a low-
ering of the price through a government cxplnt sub-
sidy would not l)e likely in itself materiallv to increase
the exports of American tobacco to the German market.

In the third place, there is reason to supi)ose that
in certain countries retaliatory action in the form of
countervailing duties or even of embargo on American
tobacco might be taken in the event of the introduction
by tlie Tnited States of a general program of export
subsidies. Such action, if it were taken, would not
only nullify such effect as the subsidy might otherwise
have in stimulating our tobacco exports but might have
an adverse effect on the trade which already exists.

Finally, notice should be taken of the possibility of
the adoption of a general export sul)sidy policv by'the
I'nited States on tobacco leading to the adoption of a
similar policy by other tobacco-exporting countries. At
the present time it does not appear that export subsi-
dies are widely used in the international trade in to-
bacco. But experience in other commodities, such as
wheat, would seem to point to the conclusion that, if
the Fnited States started general export subsidies 'on
tobacco, other tobacco exporting countries would be
likely to adopt similar measures to protect the position
of their product in the world market.

The most promising field for juomoting the export
trade in t(.bacco appears to be that which can be
reached through recipnu-al tra<le agreements. Through
such ageements eight countries have alreadv given con-
cessions on unmanufacture(l tobacco, and five on manu-
factured tobacco. These seem certain to have benefi-
cial efTects, and it is believed that the extension of this
pn.gram offers the greatest possibility of protectiiiir
and improving our present position in the export trade.
Progress has been made in developing increased
use of tobacco byproducts, and a program of research to
tutt her exploit this field will be inaugurated in one of
the regional laboratcuies soon to be esfablisheil. By-
products uses of tobacco are of importance mainly as
an outlet for tobacco ofTal and for low grades appear-
ing <»n tin' market.

Tobacco, more perhaps than any other product of
the sod, is affected as to type, quality, and manufactur-
ing characteristics by the conditioiiH of soil and climate
under which it is grown. The varieties, cultural prac-
tices, ami curing technique which in one envinmmeiit
may yiehl a tobacco particularly suited to ciuarette
purposes may in anotlu'r environment result in tobacco
nf no commercial value. The production of tobacco for
commerce therefore t<Mids to become highly regional-
ized, ami, in consequence, the tolmccos in international
tra«Ie are associated with particular areas of produc-
tion. Kach type has its own unicpie characteristics and
IS suitable for use iii ct-rtain classes of products. They
are interchangeable with each other onlv within rather
narrow limits.

The 2(j types of tobacco produc*'d in the Inited
States are grouped into six classes as follows;

Fine-cured, used principally here and abroad
in cigarettes, but also in smoking and chewing to-
I)acco.

The Tobacco World

Fire-cured, used principally in snuff, and to a
small extent in chewing and Italian type cigars, in
the I nited States; used abroad larg<'ly for cigars,
smoking, chewing, and smifT.

Light air-cured, used widely here in cigarettes
and smoking, and also rather extensively in chew-
ing; exports small compared with flue-cured and
fire-cured.

Dark air-cured, used here mostly in chewing
and in the manufacture of black-fat for export, and
al)road in chewing, cigarette, and ])ipe smoking.

(*igar filler, cigar binder, and cigar wra|)por
used as the nami's in«licate and also for scrap chew-
ing. Little cigar t(»bac<'o is export e<l.

Of the above classes those which are imi)ortant in
the export trade are flm'-cured, fire-cured, and dark
air-cured. In the light aircured group, exports of bur-
ley are of s(mie importance and ofT«'r some hope of in-
creasing. Maryland tobacco for three centuries has de-
pended on foreign markets, but within the last »lecade
this outlet has dwimlled in importance ami its place
has largely been taken by increasing domestic consump-
tion.

Many foreign tobaccos are comparable to Ameri-
can types and may be similarly classified. The most
notable except i<»n is the so-called Turkish, or oriental
and semioriental cigarette tobacco of southeastern
I'iUrope and the Xear Isast.

Forms of Tobacco Consumption.
The general fvirnis in which tobacc<» is consumed
ar<' much the >ame in all countries. They include ciicars,
<'igarettes, pipe tobacco, chewimr tobai'co, jiml snuff.
The similarity as betwj'en countries, however, is more
in the form of product than in the content. Cigarettes
of American manufacture represent a l)h'nd of flue-
ciired, burley, Maryland, and Turkish. In Great Brit-
ain cigarettes are ma<le almost exclusively from flue-
cured tobacco; in some countries the use of Turkish
pretlominates; in Spain fire cured is much ust-d; while
in France, Maryland and <lomesti<' or imported dark
air-cured are used in cigarettes. In Italy and Austria
cigars are made from fire-cured tobacco, whereas in
this count i> sales of such ciijars are limited to a dwin-
dling number of immigrants from these countries, or to
vuch of their descen<lants as have acquired a similar
preference. The types of tobacco used here for pipe
smoking and chewing are not those customarily u.sed
in many Kuropean countries.

Although a similarity exists in the general forms
of tobacco consumption in various parts of the world,
great dissimilarity exists in the emphasis placed on tlif-
teient forms. In Riigland cigarettes and pipe tobacco
are most (Mimnum: in some countries cigars are fa\'ore«l,
while in <um* or tw«» chewing ami suufT t<»gether may
occupy first plac«'.

The complexities of international tra«le in tobacco
are largely attributable to the great diversity in uses,
preferences, and limitations upon production. The
liabits and tastes of tobacc<» users are per.sistent to such
a degree that cha»»ges on a broad scale usmdiy take
plact' slowly, with the result that juior to the introduc-
tion of artificial measures of control the general fea-
tures of international trade in tobacco were charac-
terized by great stability. Manufacturers when free
to do so continue to patronize those sources of supply
which in the past liave enable<l them to please their
customers. As is discussed elsewhere in this report,
however, governmental measures affecting tobacco
trade have increasiHl in recent years through the opera-

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tion of goverunieiital niouopoli»s. taritT harriers, im-
|K»rt quotas. «'te. Where this is true thene factors, rather
than voluntary ehauices in the prefereueeH of users, ex-
ert a major intlueiiee on the sou tee ami type of imported
toliatMM).

hi many count rii's, JHtwevrr, the purchase, manu-
factui*'. antf sale ol' tohaeen i> a State monopoly. In
the^i- enuiitries the lu'cessity of eateriiiir to the tastes
of customers is loss cnnipelliiii,^ ami suhstitute types of
toliaeeo may be a(l<»pte(l with greater freedom. In

(Continued on Page 14)

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i i nut mill il /• luiii /'ilff> ,'t J

\\'<'('kly j)Ui'<li,i»<-- ill tlh' u|»|HT Ji.ilf run rmii' t«» live
tiiii«"- ;i- uriat ;!■- in tin- lowci- halt* witli tin* sinylf ox-
t'cptinii of X<'W York. Fir^t (jiiaitn- imrcliasrs are
typirally al»<nit twice as .ifreut a> siM-nml (juartcr pur-
cha.sfs. 'riii> i> ill efnifriist with dulhir voluiiic where
the first <juart« r luiis nv«'r thriM- tiun's as irri-at as in
th<' scrninl «|U€nt<'r. IIh r< j-. a t«'ii<h'in*v I'm* the iiuiii-
Iht nl" ciuars inirchascd In shade (ilT with size ul' eity,
lait the tlitVert'iice hctwcii ritie^ i> li>-. i< lativelv. in
tlic ujiper lialt" than in tin- h»w<'r halt*.

"( lilt i vat ioij of uppiT half families as th<' primary
iiiaikft is ohviotisly iiulicated, since buyers are more
than twice as niiiiiei«>us, i'elati\elv, than in the lower
half."

CUBAN LEAF TOBACCO EXPORTS
SHOW GAIN

SI STATKl) in a monthly revi<'w of riil)an offi-
cial statistics tVom the American Consnlate
(Jeneral, llahana, made public by the Tobaeco
Division, DepartiiK'nt of Commerce, exports of
Cuban leaf tobacco and tobacco manufaetures in April,
l!»:n>, weri' value<l at $l,44i»,24L', as c<»mi)ared with $1,-
1S], IS? in March, 1!>:5<), ami $l,(;u4,;Ul in April, 1JKJ8.
Total tobacco exports <liirinir the lirst four months of
VXVJ were valued at sii4,:54 1,872, as a^^iinst $4,7(5.Vj47 in
the ciurespoiidinir months of ]\K]H: Althouirh a D per
cent, drop is noted in the value of shipments in the
VX]\) period, due to the fact that certain classilieations
of tobacco have declined in price, as compared with
1I<.'5H, actually, the volume exp<u-ted showed but slight
ileerease.

Exports of Cuban tobacco to the United States in
April, ]U:V.K were valued at $!M):U11 ($7.')0,r)r)4 in March,
II'.'k'). and consisted of bl),.']77 pounds ot' wrapper leaf,
valued at jf^JKl,.*}?!) ; liU.s?:) pcuinds of filler, valued at
J>ln4,:)4i>; !>:>!),!)71 pounds of stemmed leaf, valued at
•S )!»<;,:)(;•_>: :5;J0,17(I pounds of scrap, valued at $8:^)40;
•JHiM-J.') ciirars, valuud at $24,881, and 'AJyOU ci^'arettes,
value<l at ^\K

There was a j^harp decline in Cuban fohaceo exports
t<» (Jerniany in Apiil; huii;e exports to that country was
the feature of the March tol>acco export market. The
outstantlinu feature ot" the April export market was a
shipment t.. Spain of Sdn.on; pouutls of filler tobacco,
valued at $11 sJ.'J.'i

Cuban tobacco shipments to the Cnited States dur-
ing the first four months of VXVJ fell .') per cent, in value
to ^2,7nL>,L»14, from $2,7!M;,H41 for the similar in-riod of
1!>.'>8. However, exports to the Cnited States aeeounted
for sliuhtlv more than (12 per cent, of total Cuban
tobacco Hhipnu'uts during the four-month period of
1 !>.'»!>. Variation in the t(>tal pereentajce of Cuban to-
bacco exports absorbetl by tin' Initol States has been
nejriitrible duriiiir the preceding months of this year.

As previously notetl, the Cnited States usually' con-
sumes (]'2 per cent, of ( 'uba 's tobacco exports. The other
.18 per cent, is tlivided annuiK •»2 ctmntries, the most im-
portant beimr the Cnited Kinjr<I<»m, Spain, (lennany,
France, and ArK«'ntina. Cuban tobacct* markets have
shiftetl considerably diiriiiK the past year. The United
Kinirdom has increased its imports of <*uban tobacco
by a consitlerable amount and remains securely en-
trenched as Cuba's second-best tobacco market. S|)ain
has rei^ained its position as Cnba's third-be.st cuMtomer.
One of the most surprisin^j market shifts was the severe

Tlu Tobacco World

w^^llODEL MINSTRELS

IVIKY MONDAY NIGHT
COAST to COAST

CBS

ISII VOUI NIWS^AMB fOK LOCAL TIM!)

Tom Howard soys he'd go
to o/most any lengths for a
pipeful of Model — and he
proves it when he lights
up this one, the daddy of
all his 846 pipes!

decrease in tobacco exi)orts to the Argentine, due to the
recently formulated commercial i)olicy of that coun-
try. Formerly Cuba's third-best tobacco cust(mier, Ar-
gentina now runs a poor fifth.

AccordiuK to the National Commission for the De-
velopment and Defense of llabana Tobacco, the Cuban
pnxluction of cigars for national consum])tion during
the first tpiarter of VX'Al amounting to 'M\,:m,'X2:) units,
showed a 2 pvr cent, gain over .T),r).'n,8(M) in the corre-
sponding ipiarter of 1JK)8, and 7 per cent, over the 3.*),-
<)2(MMM) cigars manufactured in the same jx-riod of
11);>7. Cigarette production t(»taled 77,olH),247 packages
in the first three mcmths of VXV.K a 4 per cent, decline
as against 8(),})(;2,8()4 in the like nnmths of 1!>:',8, but a
2 per cent, advance over 7(>,178,(M)8 during the 1937
period. The production of smoking tobacco fell 2 per
cent, to 29,.')20 p(mnds, from .■|(),2r)7 in the first «piaiter
of 1938, and 5 per cent, from :M,Uoi) in the VXM period.

Arrivals of American cigarettes into Cuba during
the tirst three months of I'.KJJ) totaletl 14,228,800 units,
a gain of 3 per cent, over imports in the same perio«l of
1938 of 13,773,420 units, and slightly (less than 1 per
cent.) over 14,191,000 units in the first three months of
1937. (American Consulate (Jeneral, llabana.)

Large purchases were matle (Ui the Cuban tobacco
market during .May, 1939, of ohl-crop Heme<lios to-
bacco of the cleaner gratles. There was jilso an im-
proved demaml for medium-priced Kemetlios tobacco,
and stocks from the last crop are practically exhausted.
Sales of the lower grades to Spain continued and, ac-
cording to unofficial statistics, shipments to the Span-
ish Toliacco MoiioiH)ly during April ami May t«»taled
approximately 2(M><X> bales. On the other hand, the
market for high-gratle N'uelta Aba.jo tobaccos continued
stagnant during May.

BOND RENEWS CONTRACT

C. A. Btmd, Philippine Tobacco Agent and head
of the .Manila Ad Agency, has rem»wed his contract
with the Philippine (lovernment. lie visitetl Wash-
ington recently to check up (ui legislation alTecting
tratle with the Philippines, and to salute the officers of
the Bureau of Insular AlTairs who had directed the
work of the agency from the time of its organization
in l*>ir>. The work of the '* Bureau" has l)een merged
with that of the Department of the Interior under the
reorganization plan.

Shipment of cigars from .Manila recordetl a heavy
increase tluring the month of .lune. The total was
well over 1H,(MHMMM).

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I

Tobacco Merchants' Association
Registration Bureau, NEV^YokTcm

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

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

Note B— It a report on a search of a title necessitates the reporting of more
than ten (10) titles, but less than twenty-one (21), an additional charge of One
Dollar ($1.00) will be made. It it necessitctes the reporting of more than twenty
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars
(12.00) will be made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

TRANSFERRED REGISTRATIONS

FINESSE:— 10,077 ( 1 raik-Mark Record). For cigars. Ri-iristtred
January 2l^, IH'M !)> ( ieo. S. Harris <t Sons. I'hiladclphia. I'a.
I ran>t(.rrt(i l)y (.\>n-oIi(iatt(l I.itho. (.'of])., r,riM)klvn. .\'. V., who
liail taken over tin- ciK'ar label department of the .American I.itho.
Co.. successors to the reui-trants. to I".. .\. Kline c^ Co,. Inc.. Xew
York. \. \'.. im luh Id, P'.iM.

ROSA LIBERTAD:— 21.187 ( lobacco Leaf). lor ci^-ar^ Re^r-
istered Ma\ Is, iv^o! hy .\merican Litho. Co.. ChicaKi'. III. Trans-
ferred by Consolidated Litho. Corp. I^rooklyn. X. V. (who had
takefi over the ci^ar laliel department oi the original re|.jistraiit),
to Ma.\ Schwar/. Xew York, X. Y., on July 20, 1939.

JUNE WITHDRAWALS FOR CONSUMPTION
INTERNAL REVENUE COLLECTIONS FOR JUNE
Source of Revenue 1939 1938

Cigars $ 1.175.4;2.60 $1,172,811.40

Cigarettes 49.78(..121.0n 44.151.4f.r..9.?

•"^""ff 59(».9.?5.91 5(.L.^()3,88

Tobacco. ( liewiiiK and -"mokinf-; 4.829.096.40 4,871. .=174. 86

CiKarette papers and tube-. 124,806.88 105,015.88

Leaf dealer penalties 253.89 145.00

♦Manufactured Tobacco Produced by Classes

(As reported b> t'lr Ionian .f Intenunl He\etni.-. based on

nianutacturer-' return^ of productiotlj

Month of April

Increase or Decrease
Product 1939 Quantity Per Cent

T'luK 4.075.K54 — 2'-iH,H7H 6.83

Twist 425..^07 -f 59.254 16.18

Fine-cut Chewim.: 324.9(t3 — 40.699 11.13

Scrap Chewing \023.411 — 469*198 L143

SmokinR 15.044.877 ~ 1.317.954 8.05

Total 22,894.612 — 2.067.475 8.28

Four Months Ending April 30

Increase or Decrease

Proauct 1939 Quantity Per Cent

I'luK 1 5.961. ri20 — I T>^^ ()u\ 8 7f>

Twist 1.787,222 -f 121. .V,7 7.29

I-ine-cut ( lu wmi? 1.4.19.018 — 114,831 7.19

Strap Chewing 12.732.1. s6 — 39L450 2.98

Smokinif 62.M57.6V' — 648.376 1.02

T'-tal 94,777.951 — 2.566.351 2.64

•The productii.ti liKures are in pounds, and are subject to revi-
sion until published in the annual report of the Cotninisvioiur ni In-
t» rnal Revenue.

DAVE MORRIS AT S. F. FAIR

paviH F. ^^orri.s. fliilippino Tobacco Ayrciit, is
mcctiiiir Johljcrs luul dealers at tlie ciirar booth in the
Pliilippinc Pavilicm at Tn»ns>in' Islaiiil. San FraiiHsco.
( 'oinmi.s.Kioiior Luz, who i.s in chaiirc of the entire
Phih'ppine disphiy, expresseil hi.s urratification over the
sncce.s.s of the ciKar exhibit ami the nti'ady increaso of
salcH.

Advertising consists in telling who you are,
where you are, and what you have to offer.

14

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERHIANTS ASSOCIATION
OF UNITED STATES

JE.SSE A. HLOCH, Wheeling, W. Va President

WILLIAM nE.ST, New York. N. Y Chairman Executive Committee

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

GEORGE II. lUTMMELL. New York. N. Y Vice President

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

.Hf-Il'S LICHTEN.STEIN. New York. N. Y Vice President

ASA LEMLEIN. New York. N. Y Treavirei

CHARLES DUSHKIND. New York. N. Y Counsel and ManaRiuR Director

IIead(iuarters. 3^1 Madison Ave., New York City

THE NATIONAL ASSOCLATION OF TOBACCO
DLSTRIBUTORS, INC.

ALAN C. DAVIS. Baltimore. M.l President

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

.TO.SEPH KOLODNY. 200 Fifth Ave.. New York. N. Y .Secretary

J. KENZ EDWARDS. Kansas City. Kan Treasurer

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LA.SrnOW, fi<,2 Fast Fifteenth .St.. Brooklyn, N. Y President

R. L. McCOKMK K. 52 Klein Ave.. Trenton. N. J First Vice President

.1. J. OLLENDORFF. 780 West End Ave.. New York. N. Y. ...Executive Secretary
ALBERT FREEMAN. 25 West Broa<lway. New York. N. Y Treasurer

TOBACCO S.M.ESMEN'S ASSOCIATION OF

AMERICA, INC.

ITARRY A. ABRAMS President

LEO RIEDERS. .1800 Broadway. New York, N. Y .Secretary

JACK EDELSTEIN Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

WILLIAM A. IfOLLINGSWORTIL 2^^ Broadway. New York. N. Y President

LOllS KLEIN First Vice-President

ERIC CALAMIA Secretary

ARTHUR S^ MEYER Treasurer

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

ALVARO M. GARCIA President

THOMAS r. BREEN Treasurer

.SAMUEL BLUMBERG General Couni#l

Executive Committee— At varo M Garcia (Ex-officio>, Thomas C. Breen, Ilarley W
Jeffer'on. D. Emil Klein. W.iltcr E. Popper. Harry S. Rothschild, and Arthur
A. Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

BRUCE G NEBINGER. Red Lion. Pa President

C. M. EHEHALT, Red Linn. Pa Secretary

A. S. 7IEGLER, Red Lion. Pa Treasurer

EXPORTS OF AMERICAN TOBACCO

Coutium (I from Pdffr 11

liunierous countries where no nKMmply exists and where
niannfaetiirers lV»rnieily wei-e free to exercise their own
iudLrnient as to sonrces of supply, the jrovernment now
exercises ^r<'at control over the industry.

With regard to imports of leaf tohaceo, control
often takes the form of restrictions iipcMi the use of
foreijrn exchanire, hy which means manufactnrers may
he retpiired to use more domestic tohaceo and to favor
certain countries in placinir orders U)v imported to-
Imeeo. In several such countries there is an increasiny:
tendency to suhonlinate the neetls of the tohaceo iiidiLs-
try to policies of state. These aiul other eh'ments of
change have had very pronounced effects on the tpiaii-
tities of tohaceo ex|»orted fnmi the I'nite*! States;
whereas the general shift fnmi other forms of tohaceo
consumiition to ciu-arette smokinjc mi^ht have affected
the type of t<»ha<*co exptnted fn>m the rnited States,
governmental operations alhnled to have i^reatly af-
fected the total imports of all types comhined. Thu«,
by enforcinj^ the suhstitution of one imported type for
another, control agencies are ahle to materinlly affect
the direction and volume of flow of international trade.
Manufacturing retpiiremeiits, which in the |»ast have
been sup|>Iied fnmi Amerit-an tobacco, are beini^ sup-
plied to a substantial extent by tobacco produced in
other countries.

The make-up of the tobacco trade of tlifferent coun-
tries is thus the onti^rowth of the varyinj^ national
profereiieeH anti tasteH as to mo<les of eoimumption,
mo<lifie<l in manv instances l>y government eoiitrol over
the imlustry or some phase of it. It is retleet<»d in the
character of toliac<'o importetl as to type, preferred
icratles, ami sonr<M» of supply.

The Tobacco World

LIBRARY

R ECEl V E O

SEP 5 1939

ESTABLISHED

1661

^tPTtWfER

1939

TOBACCO BUSINESS
SHOWS JULY GAIN

Cig^ars and little cigars, cigarettes and
large cigarettes, registered increases;
snuff, chewing and smoking tobacco, re-
corded decreases in withdrawals for con-
sumption in July this year as compared
with the same month last year. Aside
from substantial rises in Philippine Is-
land cigar withdrawals, the month was
not up to the average of the first seven
months of 1939. Whereas, for instance,
the grand total of all classes of cigars for
the year to date was nearly five per cent,
over the like period last year, the gain for
the month alone was less than two per
cent. Cigarettes were up more than five
per cent, for the longer period and less
than three and one-half per cent, for
July. Class A cigars rose from 89.5 per
cent, of total of all U. S. classes to 90.6
per cent.

lIoBAHT B. Han KINS — Editor

Business Manager — B. S. Phillips

Ck^righc I9J9, iMiUrt & Mviai TubActo Co

THE TOBACCO WORLD

Vol. 59

SEPTEMBER, 1939

No. 9

I('Tri?E youi-sclf ns a youiii^ ,u:«»iH'ral iiianai^cr
Just calU'd ill to put a dyiiii; husiiicss on its
iVi't, and you Jiiid a Icttor like tliis on the top
of your stack of mail tin* second day you arc
on tlic job: '*^'ou^ sliipincnts arc all delayed. Vouf
packing' is careless. Von make a mistake in ev<M'y re«|-
uisition we send you. Xo one in your oflice seems
efficient except your cri'dit man, and his letters are
insultinu'. Kvery contact with your house has been un-
satisfactory. V«)U have received your last order from
us." How would you handle that situation;' Here's
how oue youiig business genius handled it :

HAT vory ni<r1it fie started on a trip to visit the
irate customer. When he irot there in'xt morn-
inu:, he tactfully explained how he had taken
over a new Job. He appreciated the customer's
frankness in writinLr as he did, he j»roiiiise<l to correct
the faults, olTered to iiiak*' any reasonable adjustment.
The customer's ire cooled. "To tell vou the truth,"
he said, "your nu'rchandise was the best we ever
]»ouulit. We have always thouij:ht it a business crime
that your y:(MMls were so much better than your service,
which was abominable. Your company knows how to
make the <r<K»ls, but it <lo<'s not know how to serve cus-
tomers intellii^entlv."

X three months, the yoimu: ir^'Ueral manairer,
tacklinu: the weak spots in sales, corr«'spond-
cnce, shippinir, accountinir, had the business
runnintr smootlily. He sold the once furi(»us
customer a $r)4(Mi (nder on the -^tiem^th of his report
that he had <orrectecl the faults in the organizaticui.
"That one letter put me on the trail of evervthinir that
was wronir: without it I miirlit have stumbled around
for montim before puttin<< my finu:er on my trouble."
said the general manager two years later, when the
oonipany was earning a substantial profit, and making
prcjgress.

XV busin<'-> organization will make mistakes.
Any business organization will slip at times.
It is not so important to place the blame, to
»*all down an J'lnployee, or chalk up errors
again-^t th»' |H*opk* who make the mistakeH. Slost im-
portant of all is to teach tlieni that t'ustomers are the
only people who keep the luisilU'ss going. Simple as
this sei'ins, tln^re are still people in business who ch>
not seem to realize this. Remember, a cranky customer,
onee pleased, is c|ui<'kly turn«*d into your most power-
lul booster. He ncvet forgets a iroo*! turn. II<' may
seem to be more trouble than he is worth, but no busi-

ness can thrive by pleasing only easy-going customers,
riieiisli your cranky customers. Appease them. Go
out of your way to please them. They are like valuable
employees working without pay. Correct the faults
they point out. Follow tlirough on their suggestions.
They may be pointing straight toward bigger profits.

HKHK is another salutary lesson for all of us
in the story of the 14-year-old stock clerk in the
Detroit ortice of a wholesale organization.
From headquarters the oflfice received a ]>ack-
age of samples. Among these samjiles was some new
cloth. The boy examined the cloth and liked it. A\'hen
the manager arrived and looked ovei- the stuff, he threw
in the wastebasket the sample that the boy liked. Dis-
concerted, the bov approaclied the boss and asked whv
the sample had been thrown away. "I don't like it,"
rejilied the head man. "We couldn't sell such stutT to
our trade." " I think I could s<>ll it," said the boy with
conrKh'iice. " Vou think you couhl sell it, eh .'" chuckled
the manager. "To whomr' "(Hve me two hours to
make a few calls," said the bov, "Go ahead and let's
see what you can do," agreed the boss. The boy
wrapj)ed up the sample and disappeared. In an hour
and a half he was back. "I've sold it," he declared
promptly: "all we have." The boy was Louis K.
Liggett, founder and president of Inited Drug. The
man to whom he sold the merchandise was Julius Kern,
later owner of the second hirgest department store in
Detroit.

X the basis of this and later sales to merchants
on whom older salesmen refused to call because
they "kmtw in advance the merchants wouldn't
buy," Liggett was promoted to road salesman
at the age of sixteen. The kid made good. He had no
adverse preconceptions about any buyer. Armed with
his samples, he penetrated everywhere. "Where more
*'experience<f" salesmen wouldn't go, he went. To tlu'
l)oy, every merchant was a potential buyer, no excep-
tions. In many places he was turned down. In many
places he got an order. His experience in this respect
illustrated the story about the man who asked every
pretty woman for a kiss as soon as he met her the first
time. "Do you ask every girl thatf** asked one of
them. "Yes,*' answered the man. "Then," commented
the woman, "you must get many a hard slap in the
face." "I do," admitted the n'laii, "but I also get
many a sweet kiss." Anyway, the aggregate of the
lad's orders gave him a handsome volume, and proved
the stnindness of the sales philosophy that, if we expose
ourselves to enough ojiport unities to sell merchandise,
we can sell it in a multitude of places where so-calle(l
"seasoned" salesmen would say there is no chance.

I' >■ TOBACCO WOULD <e«t. IMI) li puhlUhed by Tobac,., W.tld Corporation; Hobatt H. Ilankins. PrcaMent an.I Treasurer; B. S. Phillips. Vice President; John Cleary,
>ttictary. Office. 2J6 Chcalnut Street. IliiUdelphia. Pa. Issued monthly. Subicripti.ns, available only to those engaged in the tobacco industry or trade. $1.00 m year,
IS cents a copy; forcica, |J.?S a year. Entered as second clasa mail natter. Etec«wber 22, 1909, at the Post Office. Philadelphia, Pa., «nder the Act of March 3. 1179.

WHITE OWL AT WORLD'S FAIR

I TSTAXDIXCf among tlu' attnu'tions at Uw
New York World's Fair is the White Owl cioar
exhibit huildiiio-, wl,ieh is constantly thronged
with visitors, enjoying- the numerous and
varied lorms of entertainment provided througli the
cinirtesy of the (ieneral ('igar Companv. T(ri)egin
with, the hudding is air-eonditioned, and'that itselt^is
retreshmgly welcome to the Fair visitors. And there
M'ems to l)e no end to the amusement |)rograiu.

World and sport news hy direct wire is flaslied on
a Iranslux screen from 1(1 A. M. to 10 P. M,

Electrically operated hasehall score hoards give an
inmng-hy-mmng account as well as a summarv of the
ints, runs and errors for each (hdlv game in the Ameri-
can and National Leagues.

A continuous flow of fine music is dispensed
tliroughout the day and evening.

A lounge room with soft comfortable seats is pro-
vided lor visitors, to rest and relax while watchin-
news flashes and baseball scores and listen to fiue music
at tlie same time.

In the exhibition auditorium two remarkable cigar
niachines show the successive steps in the manufacture
ol the new A\ hite Owl brand from leaf to finished cigar
Another amazing machine wraj)s the cigars in cello-
phane, places the White Owl band arom.d them, and
inserts hve new White Owls in a special World's Fair
souvenir i.ack, which is mailed to anv part of the
I nited States (for 2(i cents, of which ':] cents is for
postage).

The ceiling am] walls of the entrywav leading into
tlie exiiihit audit<.rium are covered with thousands of
simulated new White Owl cigars skillfullv arran-ed in
an in ncate pattern to give the appearance of a"'huge
tapa (British Indian taj^estry woven of l>ark).

ihe entire rear wall (,f the exhibition auditorium
s c(»%ere(I with a mosaic mural V) feet high bv <)() feet
long, depicting the growing, manufacturinir and con-
sumption of cigar tobacco.

A retail <-igar stand, of an entirelv new design is
of especial nterest to tobacconists. * '

. A liuge gard.-n flanks one wh.de side of tin. buihl-
ing where visitors may rest themselves on comfortable
chairs and )»enches.

LEAF TOBACCO STOCKS

SOLOMON H. FURGATCH

Solomon H. Furgatch, veteran cigar manufacturer
and head of the firm of S. II. Furgatch & ( 'o New YorlT
died on August imh following a sudden heart^mack

le^Jli^J^nr^'^^r* the Kiverside M.r.mriaH l!aS
beveim -sixth Street and Amsterdam Avenue, atteii h^
hy a great number of friends and associates iu to
bacco industry. ""i-^ iu nu lo

Mr. Furgjdch was in his seventieth vear having
been born m \\ ar^mw, Poland, in 1H70. CondmM M 1
country as a youth, he served his appreut^ ^^jiV^ ^
established his own firm in 1904 "inisnip ana

Mr. Furgatch belonged to fhe old school of nnm,
ch^rlbvlf^'V^f ''*"?" ^''^^' "' ".aki^l"
S.'h T rv^ n 7'"^ ^''"'H^^'t de Ada and Langs-

'li.UKhtors, f!,.,tr„,|,. D.nU UaHuykwu'r {'!'":

TOCKS of leaf tobacco owned bv dealers and
manufacturers in the Fnited State and Puerto
Pico on duly 1, IJKJJi, amounted to 2,135,8r)6,0()0

l">""ti^^'<>nipaml with lM7S,.-)<)(),()()() pounds on
; u ly 1 1!):5S, and 2,:m,m\m) pounds on April 1, 1939.
lotnl stocks decreased a little over L';n million pounds
in the period between April 1 and dulv 1 of PKsV com-
I'^t'vd with a decrease of 2r)5 million pounds in the cor-
lespondmg period of PKJS.

--o/^il*''''''' ^'^^^''^'-t'"'"^''! tobacco were rei)orted as 799,-
.>.)-,(>(() pounds on duly 1, 19:?9, al)out 110 millio;i
l><>|nids hnver than on AjM-il 1, 19.S9, and about i;}
niillion pounds lower than on Julv 1, VXIH. The stocks
<d 1 ype 11 on July 1, 1<).SJ) were reported as :i:U,9t)(),()()()
llswiJ)'''" ^-, '^ 244441,00,) pounds; Type i:i as
148,8%,()00 imunds; and Tyi,e 14 as 71,249,000 ,.ounds.
Stocks of fire-cured tobacco of all tvpes were re-
ported as 147,900,(MI0 pounds on Julv 1 1939, com-
pared with 1/<),.3S:,,000 pounds on JulV 1, 1938 a de-
crea^ve of about 31 lo million pounds. * Virginia Fire-
cured Type 21 stocks were reported as 23,71 1,0(K)

'^n-U r»i.o •■'" r "' •'•y-^-''^^'»<^ I>«""^1«= Type 23 as
.'(M.>4,0(() pounds; and Type 24 as 91(),000 pounds

. hurley st(K-ks were nearly 28^^. millicm pounds

Jui> 1, 193! , report shows fir,9,077,O(M) p«,un(ls of
Hurley owned by dealers ami manufacturers. Marv-
hiiu tobacco. Type 32, stocks weiv reported ii*s 2l),-
8b.),000 pounds, about 2 million pounds lower than k
year ago. "

One Sucker sto<.ks on July 1, 1939, were 30,168,000
pounds; (.reeii Piver stocks were 23,1.39,OfK) pmiiids-
Io^h!^' Sun-cun.l, 2,9ir.,(MM) pounds; Kasfc-rn Ohio,'
J-.MKM) pounds; Perinue, ,2(MM)0 pounds; Other Mis-
cellane(»us Domestic, .->81,000 pounds; and Forebni-

-nn/i. '"'''''*;**** *^^''*''^*' (Turkish and other), 101,-
,).50,0{K) pounds. '' '

CIGARETTE SALES RECORD

ALKS of cigarett<'s to Puerto Pi,-,, bv manufac^

turers m continental T'nited States srt a new

high record during the fiscal year just ended,

although tin. island's purchases of most other

-nnmodities dec ined sharply, according to a statement

by the Puerto Pican Trade CotnH.il, ba^ed on V S I) -

pa It ment of Commerce figures. • •

, '^Shipments amounted to H17,PJ0,(K)0 ci-an-ttes .,

^'ied ''^he^:;;''- r' '''^ >--^f--'" the council

s at( (1. I iH. purchases were valued at $;MrHMKK), or
P) per cent, more than a rear ago.

"Sales of all goods from the States to Puerto Rieo

Uian in l.l.>/-38c,wing largely to redined eamloymeiit
ni th(. su|,'ar and tobacco industries " '"PWjnwnt

The isliuKps cifirarette purchases have mow fliafi
donHed in the last ten year« and ar. four ^oT^
Kmit as they were twenty years ago, making t e ^r^

'VOX POP- WILL MOVE TO OBS

The Penn Tobacco Company will move its "Vox

S™;::'i;!iS;;"L',-:;,. "»'"

Tht Tobacco WorU

Blast on Coffin Nails

Reprinted by Courtesy of Esquire, the Magazine for Men

By LeSTEU lIlTTKH

I KMOrSLV, it took more than three hundred
and lifty years, and a roundabout trip from
one end of the wcrld t(. the other, for America
to be introduced to tlw cigarette her very
own child. For it was tli.- American Indian who foV
(MMintless generations had cultivated and smoked the
blessed weed. And when (V)lumbus an<l his hardv Cas-
tihan crew first set eyes on tlu- Xew World, they saw
the red man contentedly pufTfing away on tobacco leaves
rolled in a strip of maizt — the fon'runner of vour
modern cigarette.

Back to Spain went tobacco, where in time the cig-
arette enierged in improved form, thanks to the substi-
tution of jiaper for maize. In the course of coimnerce,
Spain intro<luce(l h<'r newly-attired adopted chihi
throughout the Old Worhl. In France it met with
some favor, during which time it was further per-
fected. But it n'lnained for the Crimean War, at the
niiddle of the nineteenth century, really to educate the
FreiK-h pe(»ple to the cigan'tte's virtul's; to bring tlio
<'liil(l to adolescence.

Two hundred years before, the Si)anis]i traders
brought seeds ami cigarettes to Turkey, where a fertile
soil made for a tobacco of unusual mildness and fra-
grance; a tobacco of such delica<'y as to lie particularly
suited for cigarette purposes. The result was that the
Prussian and Turkish i>eople had for generations been
devotees of the paper tube.

When the French and F^nglisb soldiers met them
<in the battlefield of the Crimean War, thev soon be-
came anpiainted with the cigarette's fine «pmlities: its
mildness, convt-nieiK-e, and stimulating efTect8. The
war over, an army of addi<'ts returned to inHuence the
tobacco tastes f>f two nations^an<l ultimately the en-
tire world. Little imagination is reipiired ti) picture
the efTect of dapper Knglish ami French ofTicors upon
the menabout-town, who found it worth th<'ir while to
roll their own to the admiring glances of the fair sex.
The cigarette was all tin- rage. In a iVw years, it
recrossed the Atlantic, like a homing pigeon," to roost
in America, the land of its birth.

At the onset, manufacture was modest. Sales w^ere
neither startling nor steady. Tn fact, the whole busi-
ness was frowned upcui as a fad, headed for an early
grave. And indeed, it looked as if predictions were
right, fi>r suddenly sales took a terrific nose dive. The
in«lustry was in its (h'ath throes by every known test,
when just as suddenly the patient not only sat up in
bed and rolled his eyes, but actually hopped out and
w.'iit into a song and dance thanks to the hvpodermic
etfect of the Civil War.

Down in Durham, Xorth CanHina, some of Sher-
man's troops went in for tln' ohl army game of looting,
playfully cleaning out the entire stock of a tobacco
manufacturer, to his temporary ruin. But the.se free
samples proved to he just what the dm-tor ordered, for
when the war was over the soldiers and their friends
came back for more. Snatched from the brink of ob-
livion,^ the cigarette 8ur\iyed adolescence, reaching
maturity at the torn of the twentieth century, w hen we

September, ww

thi-ee billion cigarettes a

find America iiroducing some
year!

But make no mistake: the success storv of the
I'igarette doesn't read like a Horatio Alger vaVn. For
the American-born immigrant was about to enter the
stormiest stretch of its hectic career, (^ame the zealots
bent on driving the cigarette out of this country.

The first ten years of the new centurv were
marked by violent anti-cigarette cami)aigns. Profes-
sional moralists, religious reformers, faddists and
lanatics of every conceivable hue and description, all
.loined forces m a holy crusade to exterminate this verv
<h'Vil in disguise. Not only was the habit degrading;
It was ungodly, ungentlemanly, and a hundred ])er
cent, assurance of an early residence in the very lowest
liole in all of Hades. Branding the cigarette, cfrffin
Hails^ii name that has since not onlv lost all of its
evil connotations, but has earned atTectionate associa-
tions tlH-y waged a (hiy and night battle to burv this
enemy of civilization lest it burv us. Blindly and
hotly, casting all fairness to the four winds— for this
was war — they went to work to rout out the enemy,
rnfortunately for them, they ov«'rlook«Hl the important
fact that neither histrny, human nature, nor truth was
their ally.

H;ul they consulted the \msi, thev should quickly
have tliscovered the futility ami injustice of their well-
intentjoiH'd, though misdirected, efTorts. For from the
vi-ry introduction of tobacco to the Old Worhl, it met
with all sorts of anti-smoking attacks. And not namby-
pamby drives aimed to (h'stroy tin- habit by the force
of a faction of society's scorn, or by fines. lUit by
strong-arm methods of barbarous proportions.

The "Counterblaste to Tol)acco" of England's
King James I, in the scv.Miteenth century, is too well
known to bear repeating. A contemporary ruler in
IN'rsia, Shah Abbas the (ireat, gained international
immortality when he forbade all forms of smoking
umh'r dire penalty. The Emperor .Tamangir went
him om> better by issuing a decree ''assuring" absti-
nence by th<* a|>parentiy simple expe<lient of slit-
ting the lips of any man caught smoking. But the
prize-of-sorts must be reserved for the Turkish ruler
who ordered that the nos(>s of his smoking subjects l^
pierced an<l that theiv pipes be thrust through, as a
warning to others who might be tempted to the evil
weed !

But what good did all this barbarism do? Men
continued to smoke in extreme privacy; tobacconist
shops became the speakeasies of their day. If aiiv-
thing, by making sm{»king a forbidden fruit! its virtues
Win- enhancetl, and the very opposite cd' the sought-for
etfect was the result. If such drastic penalties failed
to deter people from wooing Lady Xicotiana, how
couhl the relatively anemic reprisals of the anti-
cigrtrette faction ever hope to succeed!

If these fanatics, hell-bent on remaking humanitv
over to their own neurotic pattern, had taken time out
to discover what this being they sought to reform was
really like— as contrasted to what they wanted him to

(Couihiui (] OH Pnpc 12}

p. I. Cigars Showed Bi

g Gain

in July

Eiery Class Except E Registered an
Increase, Total Gain Being I7.38i;
U. S. Cigars and Cigarettes Also Up

rTSTAN-niX(i C^tinv .,f .Inly with.lnnvnls
t(irt-(insiiiii|.li()ii,iis rc|im-tr(liiitlicsii|,|,li.|]i,.|il
to IIr. Tdhiira, lliinjiii, I, I. issued liv ih,. '|'„.
biuro Mi.ivli.-mts Ass,„-iiili„M ,,( lliV rnitc.l

I^Ia.xl n.ifn,s. T „'.v was ,-. o,,i„ i„ ov,.,v .-l.-.ss .'xlvi.t

lo ,-, '■11'-'"'"'."'' •■'" '•'"""•■" '•i'^'""- '■'•'"I" KWlfUKit;
o I.M.)4,<.!l,. a hivoral,!,. .lillViviic,. of l>,s;i.-),(i;n ,„■

'Vni'ir'-."'"'- ''''■''■\-^ "',■ ""■ '"• 1- '"■"•'•■'•» '-""'<■-

.^hKM,.,.,,v 1,.:.4 ,„.,• «.nt. Class H wont Innn 14(i;
to I,),,; Ua.ss ( „,.a,ly scxtuplcd its witli.liawals

fo'-K-f r;;--''7.',' '"r:'-''""^ ""- " '-li-'-' .

.mi'n', ••,•'"•• '"-••:'■"•'"■'''-' '"'"'last year in.) ulv
.iiKl ii.ii> a one m llic same month tliis vi-ar

I nitod Statos ciuars rcKistoicd jjains in Class.s A
"'.'i'.;;:. '.T:?'"^ '" tl.e .other .lasses. All .lasses tolal...l
?:.;:•-;:-•"• ''-^^.J'!;''''!.-! 4L'(I..-,1(I..;7l'. an in.Mvas.. „f

ous cTa:j:tlnr:r '"'"' "'''^ len„of,h..vari.

Product
Cigars ;
Class A—

I'nited States
J'liilippine Inlands
i'uerto Kin, . , .

Total

Class B—

I'nited States
i'liilippiiie Islands
Pmrto Rko

Toul

Clasi C—

United States
i'hilippine Islands
I'uerto Rico

Total

Class D—

United States
Philippine Islands' ^
I'uerto Rico

Total

Class E—

United States
Philippine Mands
Puerto Rico

Total

July, 1939

382.f.45.615 -f-

I*Mn.6r,5 -f

214.J50 -1-

Increase oi
Quantity

9.346.830

2.8 10. If, 5

170,800

12.327.795

■ Decrease
Per Cent.

17.24

• 401,971,530 +

3.16

3,w,2.650 —

1.577 ^-

U.WM) +

231.183

174

0.950

5.94

3,078.227 —

224.059

2. 1 1 '>.808

22.504

9,2(MJ

5.74

38.252.320 —
27.M) ^-
16.850 —

5.25

38.296.550 —

2. 1 Of.. 504

5.21

2.714.781 —
14.075 -f

1.045

3,288

2.243
27.971

5(M)

0.04

2,728.856 ^

OM

2S7,77t +

12.17

257,771 +

27.471

11.93

■2.:>i) !K.r....nt •'•''-'''"'''''''•■■'• "" i'"''-""«' "'■ !',:i4(;„s:{0, or

eont.^'''"' "' •■''''"-'''•'"' " '''■'•'"'« of -'••il.KSJ, or o.'M ,,or
IK.r ec'li't?' * '■ •'•'••'••-••■'-"' " 'l"'-'-''"--^' of -M li'.NOS, or :,.■>:,

..f i.!4!i;:;i;.^;^;":!,;,r'''''''^^ "' '''^ "■•■""« <'"••■'•'->'

(•lass K l'.-)7,771, a yain .,r J7,!I71, or 12.17 per o.nt
Lltl.. .•ipns went wil.l, ,.oin,«- wav l.,.v, , .ve n

ii.as.^ loi 111,, nil. nth was )( .7;; ,„,.. ,.,.,,, .• ». .
iirettes total.'dU ■)-,<) Sl}1 SKI . ■ .; - ' ' '''«■

an m.Tease .il' 47"iaa'iiTM ■> ''"•'"""' '•'.'M..,.)(,,S4(I,
tl.„ ,. . ,. " ^ '•'•■*■*•'•■'' I'. OI- •!.4.) per cent., which sel

•Kve of'Ir- ''f "•'■'><'M.""'i.ipat..,| in fl,o large pprepnl-

ntin''t^on; j'";;:; ;:. .';s;;;/s8"'"'^"' '■«'-""•-"•

nv irn n '^-'-"" t*> -M),(kS8, an incroa.so of 144 488

OI HflA)l Iter I'Ouf • ^i.nA' 1 1 - , *-rT,i-oo,

H,e.nn,a;,dsn;.:;!i-'i;:;L::::K!.;:- -;;;:■:;• -^

i olk.wiuir aro tho comparative ligmes :

i«»tal .All c lasses:

I nite<| .st.Jies ... ^^^j;^,.,-

IMulippnu- Inlands . .[ Tvj^f.of

'"^'"' ^^"<' 245.100

Grand Total . . . . ~. 446.932,934

Little Cigars:

I'nited States . . i > , ,,, -, ..

Ill -i- , . l...,>,>0 s^,(l

I'hdippnu- Islands '

I'uert.. Rift, ■

'^***^' •• 12.3J0.5fW

Cigarettes:

United States . 14.259.801.810

I hilippuie Islatif s s? tjfi

»'"-^" «•- :: 573:fl

'''"•^' 14.260.460.150

I.arK« Cigarettes;

United States . . ,„,, ,^„

Philippine Islands ^'-'^

''"^--^^'^ »<"<' '■'. mm

''"'^' •_ 306";^

Snuff fibs ); ~

.All r ruled States ... J.,'ri '18

roba.tu (Chewing and
Smoking) lbs

United States . ^t/7j<9^

M.ilippine Island^ ::: -^'''^^'676

Increase or Decrease
Quantity Per Cent.

+

7.022.765

2,835.f.31

H>8.55o

10.026.946

6,0fi2,960

1.67

17..J8

2.29

96.73

+ 6.0f,2.960 96.73

4-
+

+

+

+

475.443.970
64.140
61.800

.145

475.569.910

3.41

144.488 101 f.l

*00 2.00

144,088 88.83

lfiO.742

5.88

4.58

''WHEN YOU LIKE A CIGARETTE THE WAY I LIKE CAMELS
IT'S MIGHTY NICE TO GET MORE PUFFS PER PACK"

3ays Owen Harding, Veteran Maine Guide

Coprrisht. ina. R. J. iUjmalda Tabuoo Compuy. WliMtoa.iUwB. North Cu«liM

Recent impartial scientific
laboratory tests of
16 of the largest-selling
brands show —

By burning 25% slower than the
average of the 15 other of the
largest-selling brands tested—
slower than any of them— CAMaS
give a smoking plus e<pal to

1 CAMELS were found to contain
MORE TOBACCO BY
WEIGHT than the average for the
1 5 other of the largest-selling brands.

2 CAMELS BURNED SLOVf'ER
THAN ANY OTHER BRAND
TESTED -25 Of SLOWER THAN
THE AVERAGE TIME OF THE
15 OTHER OF THE LARGEST-
SELLING BRANDS! By burning
25 c? slower, on the average. Camels
give smokers the equivalent of 5
EXTRA SMOKES PER PACK!

3 In the same tests. CAMELS
HELD THEIR ASH FAR
LOSGER than the average time for
all the other brands.

OWIN HARDING, wlwj kmyws the wtxxis. streams, ami por-
tases <rf his native Maine country like a book, also proves a good
guide <M ci^recte quality, as he shares his favorite brand with
Mr. ami Mrs. Qifford Stanford, from down In New York City.
"Camels are a longer-burning cigarette," Owen says, "and that
^«aas imorf smokin' for my money. It mmns. too, that Camels
ttste cooler. . . milder. Puff for puff. Camels put more pleasure in
smoking and a big extra mea«ire of it."

C^»«rve the way your cigarette bums. Recent impartial labora-
tory findings confirm the experience of Camel smokers. Camels
are known to burn longer, delivering steadily to smokers mtMi
pleasure per puff and more puffs per |Kick. And all the while
you get the mild, ripe goodness of finer, more expensive tobaccos,
drawn from the largest treasure of choice tobaccos ever gathered
in one place. Camels are the quality cigarette etery smoker
caoaffMd.

Penny for penny your best cigarette huy^

CAMELS LONG-BURNING COSTLIER TOBACCOS

1.137.302

4.58

The Tobacco World

September, jyjy

Increases Mark Seven Months' Record

All Classes of Tobacco Products, ^vith
Single Exception of Chewing and
Smoking, Registered Gains to Date

a|HAT tiiH's lliroii-li ;, si;i

""•'■'■ l'''''-m.«.. ,,( i,!; ■ " ;'^'';''''"'^ '" ""■ onl..,- „f •■'"<' '•• If. losses. ' "''^ '•"^"'"" -*-- l-w <■,■„(. I,y I'. I.

t'oniparcd with tl... < '>i«'nt, or tlic (innositc .iv; Cliiss ]) ]f;7",n<ji/i i

\M ,.i...... . .■ .• ';"•.""»" l-<'-> |MT .Mrif. I'. I. iticrpiisc '" '"--* I"''' >«'iit. I,v i|„.

oolM|;■uv,l\^i7^TJV''MV,;^V4-''■' '"'•■'''■'' -•■'■••'•l!"l.4;!S, ,,s

^'"■■■.- W.MS .„ in ■;,;;■;;{; v,"; ""•'■'•"^" '.''■ '••f-."i'M'!.i.

Rh-„. Inin-iim til,. I,..-, „;.■''•'■'"• ''■""' ■•"'■'■to
4.74 |,..r ,...,, t. '"' '"■"■"■"■•i«" '>!■ «.-,in .l„wn („

TlH'|-..s.,.i,,.,,,„„,„,„^„,^.,,,^,_^^^^,^^^^._____^^^^_

1st 7 Mo«.
Cal. Yr. 1939

Product
Cigars.

Class A

C/iitcd States .. >, ;g,,,, , .

'"^'■'^ ^-- : '-i&io

T«»tal ..

Increase or Decrease
Quantity Per Cent.

I.iftlf cioars tof.'ilod OH^-^nTrn
<'j,ii';nt.tt(..s ,..,„ ,' .,'7' •

vaiiml. "-^.iH'tfc \vi(|,cl,aw.-,Is ..,I.s.(, n<i-

Class B —

United States
Philippint- Islands
i ucrto Hico

Total

Class C—

I'nited States
I'hihppitH. Islands ■
I utrto Kicu

Total . . , , .

Class J)__

Jnited States
I'hilippin,. Islands'"
J uerto Rio '

'L.tal

Class E—

United States
Philippine Islands'"

1 inrt.. Ri, ,, _"

Total ..

^.764.933.630 + ITTRT:.

6.14
0.75
5.02

T92

Product

■Jotal All Classes;

United Statt-s
j'i'iljppint. Jsianci:
I uerio Kico

I St 7 Mos,
Cal. Yr. 1939

Increase or Decrease
Quantity Per Cent.

Grand

"fal

21M7M9 —

I8.8.?0 __
lli.(KW) a-

i

22.118.389 —

5.484.224
61,850

236.6^.502 - HM97.y>.
"<i,6J4 — a '?<■ t

132,750 - .,^iH

237,mn,m, —

l6.750,94fl __

58.541 ^

500

16.809.981 ~~

1,653.072 4.
13.671 +

1.666.743

956.(ji/.
39.012

995.2^

1«3.742
11.194

194.936

19.%

19.70

4.25

4..W

.40

5.59

I-ittU- Cigars:

[""itfd States
'hilippine Islands
' iH-rto Hit,,

Tt'tal

Cigarettes;

United States
•'"lippine Islands '
I utrto Ritn

' <'tal . .

798 Un ' ''•*''.220

'>^.230.;f,(l 4-

98.230.760 -f

98.457,071,313

12.51

13.24

Uniti-d Stalls .
* hilippine Islands
Puerto Rico

Total

Snuff (lbs ):

MI Unitfd Stalls

Tobacco rChewlnff and

Smoking) lbs.:
United States
Philippine Islands

Total . .

/wi A,f "*" ^'727.117.171
J^i'iO^ + 425;274

50

3.«)7.830 + ,J3>;5^

1.430.876 +

121 —

99,700 -.

1.530,697 -_

22.143.923 +

172.267.525 —
564 -f

172.2fj8,rNi9 __

31.606

40

43.150

11.584

I.OI6.544

2.882.088
517

2.881^7?

490

(1.71
13.20

4.74
13 11

In

5.04
5.04

2.26

n.7;

481

1.65

165
The Tohaccp World

Here's what Larr)- Moore recently
told a visitor to Tobaccoland :
VISITOR: Why have crops
in retent years been so gcjod.*"
MR. MOORE: Because farm-
ers have adopicU new methods...
developed by the U. S. Gov't! "
VISITOR: Do Luckies get a
good gtade of these improved
crops .^"

MR. M.: "Yes, sir— Luckies al-
ways did choose the choicer
grades That's what started mc
smoking them 21 years ago!"

VISITOR: 'Do other tobacco
experts prefer Luckies, tuu.^
MR . M. : Among those I know,
Luckies are the 2 to 1 favorite!"
VISITOR: Looks to me as ii
I'd better tr)- Lucki^!"

Yes, the tobacco in Luckies is
better than ever. And Luckies
are easv on the throat because
oi the tamous Toasting proc-
ess. Try Luckies for one %veek.
TTien you'll know why WITH
MEN WHO KNOW TOBACCO
SEST-irs LUCKIES 2 TO 1.

n^a^

September, /g,'v

POPULAR LEADERS

By P. Lorillard Co

BEECH-NUT

UNION

LEADER

OLD GOLD

Double Mellow

Cigarettes

LILLIAN

2

for
5«

ROCKY
FORD

MURIEL

Senators

5t

VAN

BIBBER

5for10«

SENSATION
20for]0<

BETWEEN THE ACTS

15* Pkg- often

INCREASE IN TOBACCO CROP

ASKD nn (•oii(liti«)ii> as of July 1 tlii' VXV.) to-
luicro cinji is t'XpcctiMl to he nearly l,(>.V),rMK)
pduiuls, whicli is 2<) jHT (M'lit. larucr than last
Heanoii, acfnr(lin«i- to tlic Tobacco Situation re-
port of tlic I'uicau of Auiicultural KctuKMuics. Most
of the increase in su|>i»ly for the \\K*,\K4U season as coni-
imred with i;»3H-3J> is in Hue-cured tyj)es. Th(» I'>urea'i
states that the denuind for United States leaf probaVdy
will not he irreatly ditTerent frc»ni that of last season.
Current rates of consuni])tion of tohaeco |>roducts and
prospects for stable to slii^htly improved business con-
ditions in the Tnite*! States indicate that domestic
demand will ])e well maintainetl. Foreign demand con-
ditions, however, may not be as favorable as in the last
two seasons.

Prmhiction of flue-cured tobacco in the Uuit«d
States is now estimated at more than 1 billion pounds,
compared witli TH6 million pounds in 1938, Hm million
pounds in WlM, and the previous record hi«:h of 865
million pounds in 1930. It is estimated that .Inly 1
stocks will show a small decrease under those held on
the eorrespondina: date a year earlier. While domestic
demand for flue-cured leaf is expected to be as ^ood as
or slightly better than in 1938-39, foreiprn demand may
be less stronji:. The trend of consumer prefereni^
abroad continues to be toward cijcarettes made from
flue-cured tobacco, the Bureau says, but the increase in
the British import duty has stimulated the use bv man-
ufacturers of Empire-grown tobacco. The latter aver-
ages considerably lower in price than American leaf,
and is imported into the Fnited Kingdom under a tariflF

10

preference ecpiivalent to about 50 cents ])er jmund.
Crops of Hue-cured tobacco in the Orient are reported
to be sul>stantially larger than in 193S, and United
States leaf a))i)ears to be facing moie stiingent trade
lestrictions.

Ui-oi)s (A' light-air-cured tobaccos in 1939 are in-
dicated at 3r)l, 272,000 i)Ounds for Hurley and 20,330,000
j>ounds foi- Maryland, compaied with 338,789,000 and
29,250,000 pounds resi)ectively for these types last
year. Stocks of both Hurley and Maryland are ex-
pected to be larger than a year earlier but for Mary-
land the drop in production will more than olTset the
small rise in stocks. Thus, supply and demand condi-
tions for these tobaccos during the coming season may
not be greatly dilTerent from those of last year, al-
though it should be remembered that the (piality of the
1!>38 Hurley croj) was considerably above average.

Crops of both fire-cured and dark air-cured tvpes
in 193!) of 92,503,000 pounds and 3(),75s,000 pounds, re-
spectively, are both moderately larger than those of
li>38. If this year's pioduction turns out to be of aver-
age (juality or l)etter, growers, particularly of types
22, 23 and 35, may receive larger total returns than in
1938-39. Fundamental demand factors for these types,
however, continue relativelv unfavorable.

•

Conditions as of .Inly 1 indicate a larger jiroduc-
tion of cigar tobaccos, especially of Connecticut Valley
types. Total returns to growers of these types should
be materially larger than a year earlier if crops are of
Jiverage (juality. The substantial reduction anticiimted
for stocks of Hller types, on October 1, should result in
another comparatively favorable marketing season for
growers.

Total production of cigar types in 1939, accoril-
ijig to conditions as of July 1, will amount to 124,-
504,000 pounds, an increase of 10 per cent, over last
year. Increases are indicated for all three of the major
classes: tiller, bin<ler, and wrapper. Substantial in-
creases are indicated for Connecticut Valley bin<ler and
wrapper types, 1938 crops of which were sliai ply re-
duced in both «|uantity and <piality by hurricane and
Ijood. Slightly smaller crops of Wisconsin binder, type
54 and Georgia and Flori(hi Shade-grown wrapper are
in prospect.

With little change expected in October 1 stocks as
<'ompared with a year «'arlier, and with a hirger crop,
supplies of binder and wrapper in the 1939-40 season
are expected to be larger than in l!>38-39. Kstinuited
disappearance of Hller types, however, tluring the 12
months l)eginning October 1, 1938 is about 50 per cent.
al»ove 1938 production, and with the conse<|uent de-
crease in stocks, total supplies of Hller for 1939-40
jirobably will be about 20 million poumLs, or 10 per
^nt., smaller than in the preceding season.

Tax paid withdrawals of large cigars and the pro-
duction €k Mrop-chewing tobaccii have shown small in-
creases in recent months. Any further improvement
which may take place in business activity and consumer
incomes probably will be reflected in an increased con-
sumption of cigars.

Prices received by growlers for the 1938 crops of
filler tobacco especially those for Pennsylvania seed-
leaf type 41, were higher than in 1937 and on the aver-
age for other recent years. Prices for wrapper and
binder, however, particularly binder, w^ere compara-
tively low. Producers of filler probably will find
1939-40 another comparatively favorable marketing

season.

Thf Tobacco l^orid

Make your counter known
for El Producto and attract
the quality trade that gives
volume !

Smokers
know

G. II. P.

Ciifkr C^-. Inc.,

Phito., P«.

for

the superb quality
that goes into

ELPm)cro

Jorreal enjoyment

REVIEW OF CUBAN STATISTICS

MPOHTS of American cigarettes into ('uba
luive slinwn continual progress, reaching a
total of '27,r)9(;,80() pieces in the first live
months of 1!K;!>, a 21 per cent, gain over
22,794,4'Jn in the like months of P>3)8. The _1!>38
p»Vio(l retristered a slight <lecline from *j:J,r)9r),400
in Januarv-Mav, 1!>37. Arrivals during the iirst five
months of'l93(;"totaled 19,ns-j,sno pieces, a mat Mial in-
crease over ir),n;5,8l() in tlu- corresponding months of
193.'), while in the 1!>34 period only 4.j,fMM) American
cigarettes were imported. , . .

According to a review of Cuban <»fficial statistiCH
from the American Consulate (leneral, Havana, nuide
public bv the Tobacco Division, Department K^'i Com-
merc««, Cuban exports of tobacco and tobacco manufac-
tures in June, 193!), were valuetl at :iil,l(i7,239, in com-
]»ariHon with $1,27(;.340 in May, 1939, ami $1,383,777 in
June, 1938. Cuban tobacco export figures now include
parcel post shipments, which afTect only the few thou-
sands of cigars and cigarettes which are shipped every
year in this manner — inincipally to tlie Cnited States
and the Cnited Kingdom. During tin- first six months
of 1!>39, total tobac<'o exports from Cuba were valued
at !H),794,3ri8, as compared with $7,:>r>2,3r,8 in the simi-
lar period of 1938, a decrease of $.'):>S,(M>0, or 8 per cent.
Cuban shipments to the I'nited States in June,
19.^9, consistetl of the f«>llowing: f;3,5ir) pounds of
wrapper tobacco, value<l at $95,971 : l!n,;'90 pounds of
filler tobacco, valut»d at $97,(M>1 ; 840._087 J»"i"»l;^ ,l»i"
stemmed leaf tobacco, valued at ^.Vi'^l'J."); 2r)b,(>.')7
I»ounds of scrap tobacco, valued at $7(M)88; 17(M»8<)
cigars, valued at $21,0^!^ 4(MM) cigarettes, valued at

Si'f>lititl>ir. iijsij

$11 ; and 15 ]>ounds of smoking tobacco, valued at $11.
The t<»tal vahie of ail exports to the I'nited States in
June, 19;5!>, amounted to $843,3;u;, as compared with
$572,2(>5 in the prece<ling month.

While not unusual, it nuiy be noted that the United
States took all of Cul»a's wrapper exports in June.
France purchased 4()2,2!>2 cigars, valued at $42,9()r), at
the average price of $l(>().r).'). France was, after tlie
Cnited Kingdom, the largest purchaser of Cuban
cigars in June. The average ])rice per thousand of
ciirars purchased by the Cnited Kingdom was only
$101. 8<». Spain was the third best customer for Cuban
cigars; however, the :;42,(inn cigars exported to Spain
in June were valued at only $20,827, or at the average
rate of $()<).79 per thousand. Another feature of Cuban
eXjMuts in .lune was the shipment of l,44n,(MK) ciga-
rettes to Panama, oi practically 90 per cent, of Cul)an
cigarette shipments in tliat month.

Comparing Cuban exports to the United States
during tJie six-month period of 19.38 with 19:)9, it is
noted that in the 1939 period, shipments of wrapper
tobacco inci-eased 74,()20 pounds in volume and $.')1,794
in value; filler tobacco tleclined 144,435 pounds and
$79,r).')4 ; stemmed leaf gained 21,848 ])ounds, but showed
a loss of $24,102; scrai» tobacco increased 242,578
pounds aiul $45,178; cigars gained 212,100 in nmnl)er
and $20,994 in value; cigarettes incrt'ased 22,644 in
number and $()5 in value; smoking tobacco advanced
l(i pounds and $6.

As the United States takes 60/4 ])er cent, of all
Cuban tobacco export*, there is no <|uestion of its re-
taining first position as a market for Cuban tobacco
exports.

tt

p. I. Cigars Showed Big Gain in July

Every Class Except E Registered an
Increase, Total Gain Being 1738^;
U. S. Cigars and Cigarettes Also Up

State

?s.

FTSTAXDIXG fcatiiro of July withdrawals
for coiisuinptioii, as reported in the suppleineiit
to tlie Tobacco Barometer, issued by the To-
bacco Merchants Association of the United
was the substantial increase in Philippine
Island cigars. There was a gain in every class except
Class E, the total of all classes rising from 16,319,066
to 19,154,697, a favorable diiference of 2,835,631, or
17.38 per cent. Class A of the P. I. product totaled
19,111,165, as compared with 16,301,500, an advance of
2,81(),165, or 17.24 per cent. Class B went from 1403
to 1577; Class C nearly sextupled its withdrawals,
growing from 4876 to 2*7,380; Class D climbed from
10,787 to 14,075. Class E recorded 500 last year in July
and narv a one in the same month this vear.

United States cigars registered gains in Classes A
and E, losses in the other classes. All classes totaled
427,533,137, as against 420,510,372, an increase of
7,022,765, or 1.67 per cent. The Philii)i)ine increase,
plus Puerto Rico gains in Classes A and B, brought
the grand total up to 446,932,934, as compared with
436,905,988, which was 10,026,946, or 2.29 per cent., bet-
ter than July, 1938.

The Ignited States total was made up of the vari-
ous classes as follows :

Product

Cigars:

Class A —

United States . . . ,
Philippine Islands
Puerto Rico

Total

Class B —

United States

Philippine Islands
Puerto Rico

July, 1939

382.645,615 +

19.111.665 -I-

214,250 -H

Increase or Decrease
Quantity Per Cent*

9.346.830

2.810,165

170.800

401,971.530 4- 12,327,795

3,662,650

—

231,183

1,577

+

174

14,000

+

6,950

Total

3,678,227

224.059

Class C —

United States

Philippine Islands .
Puerto Rico

38,252,320

—

2,119,808

27,380

+

22,504

16.850

9.200

2.50
17.24

3.16

5.94

5.74

5.25

Total

Class D —

United States

Philippine Islands .
Puerto Rico

38,296,550 —

2,714.781 —
14,075 -H

Total

2,728,856 +

Class E —

United States

Philippine Islands .
Puerto Rico

257,771 +

Total

257,771 +

2,106,504

5.21

1.045
3,288

0.04

■ ■ • •
• • « ■

2,243

0.08

27,971
500

•
12.17

• • ■ •

27,471

11.93

Class A, 382,645,615, an increase of 9,346,830, or
2.50 per cent.

Class B, 3,662,650, a decline of 231,183, or 5.94 per
cent.

Class C, 38,352,320, a decrease of 2,119,808, or 5.25
per cent.

Class D, 2,714,781, a change in the wrong direction
of 1045, or 0.04 per cent.

Class E, 257,771, a gain of 27,971, or 12.17 per cent.

Little cigars went wild, going way beyond even
Pliilil)pine cigars in its percentage of improvement for
the month. The total, all U. S. withdrawals, of
12,330,560 was within a few points of doubling the
withdrawals in July last year. The actual rate of in-
crease for the month was 96.73 per cent. U. S. cig-
arettes totaled 14,259,801,810, as against 13,784,357,840,
an increase of 475,443,970, or 3.45 per cent., which set
the rate of increase for total cigarettes, in spite of
P. I. and P. R. gains.

Large cigarettes participated in the large percent-
age of gain figures, if not in large volume figures, by
rising from 142,200 to 286,688, an increase of 144,488,
or 101.61 per cent.; snuff dropped 5.88 per cent.; and
chewing and smoking tobacco declined 4.58 per cent.

Following are the comparative figures :

Product July, 1939
Total All Classes:

United States 427.533.137

Philippine Islands ... 19.154.697

Puerto Rico 245,100

Grand Total 446,932,934

Little Cigars:

United States 12,330,560

Philippine Islands ...

Puerto Rico "

Total 12,330.560

Cigarettes:

United States 14,259,801.810

Philippine Islands . . . 85.340

Puerto Rico 573,000

Total 14,260.460,150

Large Cigarettes:

United States 286,688

Philippine Islands ...

Puerto Rico 19.600

Total 306,288

SnufF (lbs.): ~

All United States ... 2.571,218

Tobacco (Chewing and
Smoking) lbs.:

United States 23.674,676

Philippine Islands ... 6

Total 23,674,682

Increase or Decrease
Quantity Per Cent.

+

7,022,765

L67

+

2,835.631

17.38

+

168,550

• ■ • •

+

10,026,946
6,062,960

2.29

+

96.73

+

6,062,960

96.73

4-
+
+

475.443,970
64.140
61,800

475,569,910

144,488
" " 400

3.45

« * ■ •

• • • ■

+

3.45

+

101.61

"i.bo

+

144.088

88.83

—

160,742

5.88

— • 1,137,398
+ 6

— 1,137,392

4.58

4.58

The Tobacco World

''WHEN YOU LIKE A CIGARETTE THE WAY I LIKE CAMELS
IT'S MIGHTY NICE TO GET MORE PUFFS PER PACK"

.says Owen Harding, Veteran Maine Guide

Coprrtght. 1989. R. J. Reynold* Tobacco Coaii>any. Wlniton-SalBin, North Carolina

Recent impartial scientific
laboratory tests of
16 of the largest-selling
brands show —

1 CAMELS were found to contain
MORE TOBACCO BY
WEIGHT than the average for the
1 5 other of the largest-selling brands.

2 CAMELS BURNED SLOWER
THAN ANY OTHER BRAND
TESTED -25% SLOWER THAN
THE AVERAGE TIME OF THE
15 OTHER OF THE LARGEST-
SELLING BRANDS! By burning
25 % slower, on the average. Camels
give smokers the equivalent of 5
EXTRA SMOKES PER PACK!

OWEN HARDING, who knows the woods, streams, and por-
tages of his native Maine country like a book, also proves a good
guide on cigarette quality, as he shares his favorite brand with
Mr. and Mrs. Clifford Stanford, from down in New York City.
"Camels are a longer-burning cigarette," Owen says, "and that
means more smokin' for my money. It means, too, that Camels
taste cooler. . . milder. Puff for puff. Camels put more pleasure in
smoking and a big extra measure of it."

Observe the way your cigarette burns. Recent impartial labora-
tory findings confirm the experience of Camel smokers. Camels
are known to burn longer, delivering steadily to smokers more
pleasure per puff and more puffs per pack. And all the while
you get the mild, ripe goodness of finer, more expensive tobacc^,
drawn from the largest treasure of choice tobaccos ever gathered
in one place. Camels are the quality cigarette etery smoker
can afford.

Penny for penny your best cigarette buy —

CAMELS— LONG-BURNING COSTLIER TOBACCOS

September, 1939

Increases Mark Seven Months' Record

All Classes of Tobacco Products, with
Single Exception of Chewing and
Smoking, Registered Gains to Date

HAT o(,es tliroiii*]) a statistician's iniiid as his
eyes take in the hioliliglits of the witlidrawals
for coiisiiiiij)tioii ill the first seven months of
lf)39, as recorded in the su})i)leinent to the
Tobacco Barometer publislied by the Tobacco ]\Ier
cliants Association of the United States, can possibly
be illnst rated by some sucli singson<>" drone as the fol-
lowino': ("it»ars are up, little cigars are up, cigarettes
are up, large cigarettes are up, snuff is up, cliewing and
smoking tobacco is down, but very little at that.

Considering only the U. S. product, the various
classihcations would line up as follows in the order of
their i)ercentage of improvement, or the opposite, as
com])ared with the corresponding period of last vear:
Little cigars, u]) l,*].!! per cent.; cigarettes, uj) 5.04 per
cent.; cigars, all classes, up 4.!K) per cent.; snuff, up
4.81 i)er cent. ; large cigarettes, uj) 2.2() per cent. ; chew^-
mg and smoking tol)acco, down 1.65 i)er cent.

All classes of U. S. cigars totaled 2,9:](J,lfH),438, as
compared with 2,7;)1),1(;2,147, an increase of 1:^7,028,291.
There was an increase of 0.71 per cent, from the Phil-
il)pjnes but a decrease of 13.20 per cent, from Puerto
Kico, l)ringing the total percentage of gain down to
4./ 4 per cent.

The r. S. cigar total was made up as follows:

153.782.715

785.010

20.440

154,594.165

5.220
01,850

1st 7 Mos.

Product Cal. Yr. 1939
Cigars :

Class A—

United States 2,059.102,305 +

IMulippine Islands ... 105,278,275 +

Puerto Rico 552,990 -f-

Total 2,704,933,030 +

Class B—

United States . 21,987.559 - 5,484.224

Philippine Islands . . . 18,830 —

Puerto Rico 112,000 +

Total 22,1 18.389 — 5,427.594

Class C —

United States 236.096.502

i'hilippine Islands ... 172,034

Puerto Rico 132,750

Total 237,001,886

Class D—

United States 16,750,940 —

1 hilippine Islands ... 58.541 —

Puerto Rico '500

Total 16.809,981 —

Class E —

United States 1,653,072 4-

Philippine Islands ... ' 13,671 4.

Puerto Rico ......

Total 1,666,743 +

Increase or Decrease
Quantity Per Cent.

— 10,497,926

— 8,752

— 209,450

— 10,716,128

956,016

39,012

200

0.14
0.75
5.02

5.92

19.90

19.70

4.25

4.. 13

5.40

995.228

5.59

183.742
11.194

12.51

a ■ • •

194,936

13.24

8

Class A, 2,659,102,365, an increase of 153,782,715,
or 6.14 per cent. There was a P. I. gain of 0.75 i^er
cent, and a P. R. gain of 5.02 per cent, in this class, so
that, wiule the volume of gain increased to 154,594,165
the rate of increase dropped slightlv to 5.92 per cent

Class B, 21,987,559, a decline of 5,484,224, or 19 96
per cent A boost in the P. R. withdrawals was more
than sufhcient to overcome a drop from P. I., and the
loss drojiped to 19.70 jier cent, for the class.

<^la«« 0, 236,696,502, a decrease of 10,497,926, or
4.-0 i)er cent., which was raised to 4.33 per cent bv P I
and J*. R. losses. • . • •

dass p 16,750,940, a drop of 956,016, or 5.40 per
cent which became 5.59 per cent, when the P. I. and
1 . K. decreases were added.

Class E, 1,653,072, an increase of 183,742, or 1^51
per cent., which was boosted to 13.24 per cent, bv the
1 . 1. increase.

Little cigars totaled 98,230,760, as against 86,847,-
4/9, an increase of 11,383,281. '

n-1 o^!f'Y^t^^« ^Z^" up the enormous total of 98,457,-
0/l,..13 during the first seven months of this vear, as
compared with 93,729,954,142, an increase of 4,727,117 -
1^1. 1. I. and P. R. cigarette withdrawals also ad-
vanced.

Following- are the comparative figures:

r. , ^** ^ ^os. Increase or Decrease

Tea, r^a^se. ^'"•^^•''^' '^-""'^ P-Cen.,

' ""•» R'™ 79»M0 - IZW IJ.2J

Grand Total 3.042.530.629 + 137,050.151 ~474

Little Cigars: ' '

Sn.ti.^'Tsia„ds-;;; ''■""■"^ + ''•''''■'«' '-'i'

Puerto Rico '

"^^^^^ • 98.230,700 + 11.383,281 ~uTl

Cigarettes: '

Uiiited States . 98.457,071,313 -f 4.727.117.171 5 04

Philippine Islands .. . 661.467 X 4^5 274

^"^•■to R'^o 3.607.830 + 1.132:950 '..::

■r^*^' • 98.461.340.010 -H 4,728.675,395 ~To4

Large Cigarettes: "

United States . 1,430,876 -f- 31.006 2 26

Philippine Islands ... 1^1 -- 40

Puerto Rico 99^50 _ 43 15^ ;••;

"^^^^^ b530,697 _ r084 ~075

Snuff (lbs.):

All United States ... 22.143,923 + 1,016,544 4.81

Tobacco (Chewing and ~~

Smoking) lbs.:

}J,";*^d. States . 172.267.525 - 2,882.088 165

Philippine Islands ... 564 -|- 517

'^°*^^ • 172.268^089 - " 2.881.571 "~L65

The Tobacco World

Here's what Larry Moore recently
told a visitor to Tobaccoland :
VISITOR: "Why have crops
in recent years been so good?"
MR. MOORE: Because farm-
ers have adopted new methods...
developed by the U. S. Govt!"
VISITOR: "Do Luckies get a
good grade of these improved
crops.''"

MR. M.: "Yes, sir— Luckies al-
ways did choose the choicer
grades. That's what started me
smoking them 21 years ago!"

VISITOR: "Do other tobacco
experts prefer Luckies, too.-*"
MR. M. : ■ ' Among those I know,
Luckies are the 2 to 1 favorite!"
VISITOR: "Looks to me as if
I'd better try Luckies!"

Yes, the tobacco in Luckies is
better than ever. And Luckies
are easy on the throat because
of the famous "Toasting" proc-
ess. Try Luckies for one week.
Then you'll know why. . .WITH
MEN WHO KNOW TOBACCO
BEST-irS LUCKIES 2 TO 1.

^^^^^^ ■* - - — ^ . • »^ — *. — -

OiWi<l>«IWi.n««iin«—Ty>nii

September, 1939

POPULAR LEADERS

By P. Lorillard Co

BEECH-NUT

UNION

LEADER

OLD GOLD

Double Mellow

Cigarettes

LILLIAN

2

for
5*

ROCKY
FORD

MURIEL

Senators

5t

VAN

BIBBER

5for10(

SENSATION
20for10«

BETWEEN THE ACTS

15* pkg- often

INCREASE IN TOBACCO CROP

ASED oil coiulitioiis as of Julv 1 the 1939 to-
baeco eroj) is expected to be nearly 1,650,000
])OUiuls, wliieli is 20 per cent, lartier than hist
season, ace()r(hnt»- to tlie To])ac('(> Situation re-
port of the Bureau of A<»:ricultural ICeonoinies. Most
of the increase in supj)ly for tlie 1939-40 season as com-
pared with 1938-39 is in flue-cured types. The Bureau
states that the demand for United States leaf probably
will not be greatly different from that of last season.
Current rates of consumption of tobacco products and
prospects for stable to slightly improved business con-
ditions ill the United States indicate that domestic
demand will be well maintained. Foreign demand con-
ditions, however, may not be as favorable as in the last
two seasons.

Production of flue-cured tobacco in the United
States is now estimated at more than 1 billion j)ounds,
compared with 786 million pounds in 1938, 866 million
])ounds in 1937, and the previous record high of 865
million pounds in 1930. It is estimated that July 1
stocks will show a small decrease under those held on
the corres])onding date a year earlier. While domestic
demand for flue-cured leaf is expected to be as good as
or slightly better than in 1938-39, foreign demand may
be less strong. The trend of co.nsumer preference
abroad continues to be tow^ard cigarettes made from
flue-cured tobacco, the Bureau says, but the increase in
the British import duty has stimulated the use by man-
ufacturers of Empire-grown tobacco. The latter aver-
ages considerably lower in price than American leaf,
and is imported into the United Kingdom under a tariff

to

preference eciuivalent to about 50 cents per pound.
Crops of flue-cured tobacco in the Orient are reported
to be substantially larger than in 1938, and United
States leaf appears to be facing more stringent trade
restrictions.

Crops of light-air-cured tobaccos in 1939 are in-
dicated at 351,272,000 pounds for Burley and 26,530,000
pounds for Maryland, compared with 338,789,000 and
29,250,000 pounds respectively for these types last
vear. Stocks of both Burley and Marvland are ex-
pected to be larger than a year earlier but for Mary-
land the drop in production will more than offset the
small rise in stocks. Thus, supply and demand condi-
tions for these tobaccos during the coming season may
not be greatlv different from those of last vear, al-
though it should be remembered that the quality of the
1938 Burley crop was considerably above average.

Crops of both fire-cured and dark air-cured types
in 1939 of 92,503,000 pounds and 36,758,000 pounds, re-
^pecti\'ely, are both moderately larger than those of
lii38. if this year's production turns out to be of aver-
age quality or better, growers, particularly of types
22, 23 and 35, may receive larger total returns than in
1938-39. Fundamental demand factors for these types,
however, continue relativelv unfavorable.

Conditions as of July 1 indicate a larger produc-
tion of cigar tobaccos, especially of Connecticut Valley
types. Total returns to growers of these types should
be materially larger than a year earlier if crops are of
average quality. The substantial reduction anticipated
for stocks of filler types, on October 1, should result in
another comparatively favorable marketing season for
growers.

Total production of cigar types in 1939, accord-
ing to conditions as of July 1, will amount to 124,-
564,000 pounds, an increase of 16 per cent, over last
year. Increases are indicated for all three of the major
classes: filler, binder, and wraj)per. Substantial in-
creases are iiulicated for Connecticut Vallev binder and
wrai)i)er types, 1938 crojis of which were sharply re-
duced in both <iuantity and quality by hurricane and
flood. Slightly smaller crops of Wisconsin binder, type
54 and Georgia and Florida Shade-grown wrapper are
ill prospect.

AVith little change expected in October 1 stocks as
compared with a year earlier, and with a larger crop,
supplies of binder and wrai>i)er in the 1939-40 season
are expected to be larger than in 1938-39. Estimated
disapi)earance of filler types, however, during the 12
months beginning October 1, 1938 is about 50 per cent,
above 1938 production, and with the consequent de-
crease in stocks, total supplies of filler for 1939-40
probably will be about 20 million pounds, or 10 per
cent., smaller than in the preceding season.

Tax-paid withdraw'als of large cigars and the pro-
duction of scrap-chewing tobacco have shown small in-
creases in recent months. Any further improvement
which may take place in business activity and consumer
incomes probably will be reflected in an increased con-
sumption of cigars.

Prices received by growers for the 1938 crops of
filler tobacco especially those for Pennsylvania seed-
leaf type 41, were higher than in 1937 and on the aver-
age for other recent years. Prices for wrapper and
binder, however, particularly binder, w^ere compara-
tively low. Producers of filler probably w^ill find
1939-40 another comparatively favorable marketing
season.

The Tobacco World

Make your counter known
for El Producto and attract
the quality trade that gives
volume !

Smokers
know

G. H. P.

Cigar Co., Inc.

Phila.. Pa.

for

the superb quality
that goes into

Jbrreal enjoyment

REVIEW OF CUBAN STATISTICS

^I PORTS of American cigarettes into Cuba
have shown continual progress, reaching a
total of 27,090,800 pieces in the first five
months of 1939, a 21 per cent. .gJiin over
22,794,420 in the like months of 1938. T^»^' ;.38
period registered a slight decline from 23,o9o,400
in Januarv-May, 1937. Arrivals during the first five
months of *1936 totaled 19,082,800 i)ieces a matL^rial in-
crease over 15,113,810 in the corresponding months ot
1935, while in the 1934 period only 4o,00() American

cigarettes were imported. ^ . , ^ ^w

According to a review of Cuban official statistics
from the American Consulate Cfcneral, Havana, made
public by the Tobacco Division, Department ot ( om-
merce (Hiban exports of tobacco and tobacco manutac-
tures in June, 1939, were valued at $1,167,239 mconi-
parison with $l,276,34r3 in May, 1939, and $l,383,n^ m
June 1938. Cuban tobacco exi)ort figures now iiic ude
parcel post shipments, which afPect only the few thou-
sands of cigars and cigarettes which are ^l^U^DtHl every
year in this manner— principally to the Init:ed States
and the United Kingdom. During the first six months
of 1939, total tobacco exports from (^uba were valued
at $6,794,368, as compared with $7,352,368 in the simi-
lar period of 1938, a decrease of $558,000, or 8 per cent.
Cuban shipments to the United States in June^
1939, consisted of the following: 63,51.) pounds ot
wrapper tobacco, valued at $95,971 ; 191,390 pounds of
filler tobacco, valued at $97,061; ^f9'J!?Lr«""tr'''7
stemmed leaf tobacco, valued at $^'-^12;); 2o6,bo7
pounds of scrap tobacco, valued at $/0,088; 1^0 680
cigars, valued at $21,069; 4000 cigarettes, valued at

September, uj^i)

$11- and 15 pounds of smoking toV)acco, valued at $11.
The total value of all exports to the United States in
June, 1939, amounted to $843,336, as compared with
$572,265 in the preceding month.

AVhile not unusual, it may ])e noted that the I'nited
States took all of (Hiba's wrapper exports in June.
France purchased 402,292 cigars, valued at $42,90(), at
the average price of $106.65. France was, alter the
United Kingdom, the largest purchaser of <'ul)an
cigars in June. The average price per thousand ot
cigars purchased bv the United Kingdom was only
$101.86. Si)ain was'the third best customer for (hiban
cio-ars; however, the 342,600 cigars exported to Si)ain
in'^June were valued at only $20,827, or at the average
rate of $60.79 per thousand. Another feature of ( 'uban
exports in June was the shipment of 1,440,000 ciga-
rettes to Panama, or practically 90 per cent, of (Hiban
cigarette shipments in that month.

Comparing Cuban exports to the United States
during the six-month period of 1938 with 1939, it is
noted that in the 1939 ])eriod, shi])ments of wrapper
tobacco increased 74,620 i)ounds in volume and $31,794
in value; filler tobacco declined 144,435 pounds and
$79,654 ; stemmed leaf gained 21,848 i)ounds, but showed
a loss of $24,102; scrap tobacco increased 242,578
pounds and $45,178; cigars gained 212,100 in number
and $20,994 in value; cigarettes increased 22,644 iii
number and $65 in value; smoking tobacco advanced
16 pounds and $6.

As the United States takes 60.64 per cent, of all
Cuban tobacco exports, there is no question of its re-
taining first position as a market for (Hiban tobacco
exports.

XI

NOW...FOUR EXTRA COUPONS

in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamson Tobacco Corporation

CIGAR BOXES

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Eitabltalir« Vm

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OUR HIGH-GRADE NON-EVAPORATING

CIGAR FLAVORS

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and impart a most palatable flavor

FLAVORS FOR SMOKING and CHEWING TOBACCO

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

FRIES & BRO., 92 Reade Street, New York

P. I. CIGARS AT GOLDEN GATE

Reports from the Golden (Jate International Ex-
position state that tlie sale of hi^di-j^rade Manila eij<ars
at the Philipi)ine Pavilion, Treasnre Island, has started
a substantial revival of trade on better sizes in the
Bay District. Old timers, Army and Navy officers and
men, and the smokers of San Francisco and adjacent
cities are buyinji: class (\ 1) and E cigars made in the
Philippines, and the repeat business has convinced
jobbers and dealers that profitable trade may be built
on the line.

BLAST ON COFFIN NAILS

(Contluucd Fnnn Page 5)

be — they should have been spared great enei\i>y. En-
ergy that niight very well have been put to better use.
For the simple, incontrovertible fact which these re-
formers— like all reformers — refused to see was that
you can't legishite desires out of a nation. And smok-
ing is a very genuine ])leasure, a satisfaction that can-
not be described by word of mouth. Smoking pleasure
cannot be appraised by non-smokers!

Because the crusading fathers, and mothers, too,
suffered a mental cataiact that blinded them to these
very imi)ortant facts, they were doomed to ultimate
failure. But let it not be denied that their intense and
concerted action acted for some time as a very power-
ful brake on the progress of the cigarette.

In time, though, as men w-ho had been scared away
from coffin nails saw addicts gain weight, retain their
losy cheeks, and putf away to a ripe old age, new con-
verts were made. Slowly but surely sales began to
mount. Meanwhile, manufacturers introduced this and
that machine ; all sorts of premiums were given away
with each pack — remember the flags and the picture
cards? Pi'ices were lowered, distribution increased,
and huge advertising cam])aigns started, so that prior
to the World War, America turned some fifteen billion
coffin nails to smoke each year.

Wars, ironically enough, have thus far played a
vital part in the cigarette's life, serving as so many
blood transfusions to save the child in crises, to bring
him to manhood. The AVorld War proved no excep-
tion ; it turned the full-grown man into a giant.

American doughboys, suffering great deprivations
and facing almost constant uncertainty, experienced a
tension they never before had known'. The need for
a short, convenient, stinmlating smoke was great. The
Government bought ciggies by the carloads; the Red
Cross did its bit. In fact, it was unpatriotic not to
send cigarettes or cigarette money to our boys over-
seas.

Back home, a patriotic people reasoned that if the
cigarette was good enough for the boys over there, it
was good enough for them. Millions of men who had
looked upon the cigarette w4th suspicion, who had
thought it unmasculine, were forced to change their
minds. Meantime, women having gained a measure of
economic freedom, smoked cigarettes, if not for imme-
diate pleasure, then as a means of telling the cockeyed
world they had equal rights with men. Eventually,
these women cultivated the habit; others more timid
followed, drawn by the magnet of custom and style. It
was smart to smoke. ITnder the hysteria of war, even
erstwhile anti -cigarette league members were known
to have taken to the weed. The total effect, in terms
of statistics, was that America consumed fifty billion a
year — an all-time high. Experts, allegedly in the know,
predicted the bottom would fall out oidv too soon.

In the years that have followed, sales have soared
higher and higher; to all appearances the sky's the
limit. Again and again forecasts telling us that the
saturation has been reached have proven wrong. To-
day, these ''prophets" can do nothing but stand open-
mouthed and red-faced as they see production hovering
around the hundred and fifty billion mark. Ilow^ever,
if volume has attained astronomical proportions, the
profit-per-cigarette has fallen to microscopic dimen-
sions.

The Tobacco World

iN^MODEL MINSTRELS

EVERY MONDAY NIGHT

COAST TO COAST

CBS

ISII VOUI NIWSPAMt PO* lOCAl TIME)

Tom Howard soys he'd go
to a/mosf any lengths for a
pipeful of Model — and he
proves it when he lights
op this one, the daddy of
all his 846 pipes I

The industry now finds itself caught betw^een the
steel jaws of an all-powerful vise : On one side is heavy
Government taxation — six cents a pack — on the other
is the fiercest sort of competition — the deliberate in-
vention of James B. Duke, who built up the old tobacco
trust, and who under Government order to break it up
to preserve the American principle of free competition,
did so with a vengeance. Constantly squeezed, the
industry has been forced almost against its \yill to a
point where it must maintain very high efficiency in
manufacture and distribution if it is to survive at all.
Were the facts known, the smoker would not take his
pack of twenty for fifteen-or-less-cents so for granted.

In the first place that little blue revenue stainp
engraved with the handsome portrait of DeWitt Clin-
ton costs the manufacturer — hence you— six cents each,
returning the paltry sum of almost half a billion dol-
lars a vear to the United States Treasury! Take off
dealers' and jobbers' i)rofits, and you find the maker
receiving a scant five cents per pack. Or less than a
quarter of a cent per ciggie. Out of this he nnist buy
tobacco— to be aged for two or more years ; pay for the
cigarette paper, w^hich is by the way entirely harmless,
anti-cigarette hangover ])ropaganda to the contrary
notwithstanding. He must erect and maintain a plant
running into the tens of millions, meet a wicked pay-
roll to keep that machinery hunnning; package and
ship his product to the ends of the country. AH the
while his advertising department is plastering his
brand name on billboards across the nation, shouting
the blend's alleged sjiecial virtues over the radio night
after night, and showing us beautiful girls in multi-
colored ads in the leading periodicals. All in an effort
to convince Mr. and Mrs. America that his cigarette is
the one best. Of late, these ten-million-dollar-a-year
advertising campaigns have been undertaken more
often than not, not so much for the purpose of increas-
ing sales so much as in an attempt to hold his own
against the fierce competition of the industry. But
with it all, though the unit profit is if anything micro-
microscopic, the total per year is staggering. And
there's no greater proof of efficiency m modern busi-
ness than the pudding of profits.

Your cigarette manufacturer watches fractions of
a mill as the automobile maker does pennies. He'd
sooner cut his throat outright than save temporarily at
the expense of lowering quality. For that would spell
slow suicide. Not that he's any more or less virtuous
than your average human, but that competition, plus
the smoking habits of a nation, comi>el him to use only
high-grade leaf.

September, 1939

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter - for the Eye
It's Lighter - for Shipping
It's Better - for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. I.

Eacabliihcd 1886

'BEST OF THE BEST

99

Manufacturod by

A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West. Florida

1
■

AUTOKR AFT

CIGAR BOXES

Boile Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-De sign-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit. Mich.

Heilam. Pa.

Hanover, Pa.
Philadelphia. Pa.
Wheeling, W. Va.

X3

"«'*»-.-

Lib

Tobacco Merchants' Association
Registration Bureau, 'new TO^axY

Schedule of Rates for Trade-Mark Services
Effective April 1, 1916
Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

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

Note B — It a report on a search of a title necessitates the reporting of more
than ten (10) titles, but less than twenty-one (21), an additional charge of One
Dollar ($1.00) will be made, if it necessitates the reporting of more than twenty
(20) titles, but less tnaii thirty-one (31), an additional charge of Two Dollars
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

TRANSFERRED REGISTRATION

ROYAL: — (United States Tobacco Journal). For cigars. Regis-
tered July 23, 1883, by Steinccke & Kerr, Xew York, N. Y. Trans-
ferred by Xat Lewis, Passaic, X. Y., successor to the original regis-
trants, to Consolidated Litho. Corp., Brooklyn, X. Y., on August
15, 1939.

Internal Revenue Collections for July

Source of Revenue 1939 1938

Cigars $ 1.047,554.44 $ 1,029,789.43

Cigarettes 42.781,762.22 41,354,212.42

Snuff 4()2.819.25 491,752.76

Tobacco, chewing and smoking 4,261.805.07 4,466,291.25

Cigarette papers and tubes 74,564.56 118.216.60

Leaf dealer penalties 67.09 340.98

♦Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue based
on manufacturers' returns of production)

Month of May

Increase or Decrease

Product 1939 Quantity Per Cent.

Plug 4.973,571 + 358.478 7.77

Twist 533.545 -f 99,492 22.92

Fine-cut Ciiewing 395.198 + 970 0.25

Scrap Chewing 3.501,236 — 49.500 1.39

Smoking 17,746,697 -|- 974,834 5.81

Total 27,150.247 + 1,384.274 5.37

Five Months Ending May 31

Increase or Decrease

Product 1939 Quantity Per Cent.

Plug 20.935.191 — 1,174,583 5.31

Twist 2,32(l7()7 + 220.859 10.52

Fine-cut Chewing 1,834.216 — 113,861 5.84

Scrap Chewing 16,233.392 — 440.950 2.64

Smoking 80.604,632 + 326,458 0.41

Total 121,928,198 — 1,182.077 0.96

*The production figures are in pounds, and are subject to revision
until published in the annual report of the Commissioner of Internal
Revenue.

JULY 1 CIGAR LEAF TOBACCO STOCKS

Stocks of American - grown cigar - filler tvpes
amounted to 189,240,000 pounds on July 1, 1939, a de-
crease of more than 20M» million pounds from the
stocks of July 1 a year ago. Ty])e 41, Pennsylvania
Seedleaf stocks, were reported as 98,193,000 pounds on
Julv 1, 1939; Type 42, Gehhardt, 14,589,000 ])ounds;
Type 43, Zinnner, 14,845,000 pounds; Typo 44, Dutch,
11,791,000 pounds; Type 45, Georgia and Florida Sun-
grown, 1,769,000 pounds; and Type 46, Puerto Rican,
25,873,000 pounds in Continental United States and 22,-
180,000 pounds on the Island.

The cigar-hinder type stocks were ahout 19^/2
million pounds lower on July 1, 1939, than they were a
year ago. Total hinder type stocks were reported as

'4

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERC HANTS ASSOCIATION
OF UiNlTEU STATES

JESSE A. IJLOCII, Wheeling, \V. Va President

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

MAJ. CEORGE VV. HILL, New York. N. Y Vice-President

(iEOIUJE H. HIMMELL, New York. N. Y Vice-President

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

JILIUS LICHTENSTEIN, New York, N. Y Vice-President

ASA LEMLEIN, .New York, N. Y Treasurer

CHARLES DLSHKIND, New York. N. Y Counsel and Managing Director

Headquarters, 341 Madison Ave., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

HENRY J. FINNEY, Worcester, Mass President

EHMINI) V. DEARSTYNE. All)any. N. Y Vice-President

J. RENZ EDWARDS, Kansas City, Kan Treasurer

JOSEPH KOLODNY, 200 Fifth Ave., New Y'ork. N. Y Secretary

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

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

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

I. I. OLLENDORFF, 780 West End Ave.. New York. N. Y. ..Executive Secretary
ALBERT FREEMAN. 25 West Broadway, New York, N. V Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

ERIC CALAMIA. 233 Broadway, New York, N. \' President

1< )I I N MALTE Vice-President

CLI FFORD M. DAWSON Treasurer

MALCOLM L. FLEISCHER Secretary

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA,

INC., 200 Fifth Ave, New York, N. Y.

ALVARO M. GARCIA President

THOMAS C. BREEN Treasurer

BLl'M BERG General C^ounsel

Committee — Alvaro M. (Jarcia (Ex-ofificio). Tlionias C. Breen, Ilarley VJ.
I). Emil Klein, Walter E. Popper, Harry C. Carr. and Arthur A.

'*^ce, V

i^ARY

.SAM r EL
Executive

Jefferson.

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STIMP, Red Lion. Pa President

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

ARTHIR S. ZIEGLER. Red Lion. Pa Treasurer

Rl'SSELL S. .STINE, Red Lion, Pa Secretary

TAMPA CIGAR MANUFACTURERS ASSOCIATION

TOSE P. PEREZ. Tamna. Fla President

ARMANDO RODRICIIEZ. Tampa. Fla Vice-President

lOHN LEVY. Tampa, Fla Treasurer

FRANCIS M. .SACK, Tampa. Fla Secretary

INDEPENDENT RETAIL TOBACCONISTS'
ASSOCIATION

BERNARD SCH WA RZ President

ERir CALAMIA First Vice-President

BENT. FRIEDMAN -....Second Vice-President

TOSFlPH GROSSMAN Third Vice-President

ARTHUR W. TONES Financial Secretary

LOl TS GROSSMAN Treasurer

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

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC.

JOSEPH FRIEDMAN President

JACK EDELSTEIN Treasurer

LEO 8IEDERS, 3800 Broadwav. New York, N. Y Secretary

120,24.J,()()0 pounds on Julv 1, 1939. Tvpe 51, Connecti-
cut Broadleaf stocks were 29,()()2,()()() ])ouii(ls; Type 52,
(Connecticut Havana Seed, 23,522,()0() pounds; Type 53,
Xew York and Pennsylvania Havana Seed, 2,64(),(K)()
])Ounds; Type 54, Southern Wisconsin, 35,150,000
l)ounds; and Type 55, Northern Wisconsin, 29,931,000
pounds.

Shade-grown wrajjper type stocks were reported
on July 1, 1939, as 8,670,000 pounds. Connecticut
Shade stocks were 6,011,000 pounds, and Georgia and
Florida Shade 2,659,()(K) i)ounds. The Foreign-grown
cigar leaf tohacco stocks in the United States on July
1, \939, consisted of 6,394,000 i)ounds of (^uha
(Havana) tobacco, 2,494,000 pounds of Java and
Sumatra, and 2,278,000 pounds of Philippine Island
(Manila) tobacco.

The figures quoted for type totals are the sums of
unstemnied and stemmed leaf as reported. A table is
included sliowing American-grown types on a farm-
sales weight basis with stemmed leaf converted to un-
stennned equivalent, and also a table showing sepa-
rately stocks owned by manufacturers and stocks
owned by dealers. The detailed report shows all stocks
subdivided according to groups recognized in the
1 i-ade.

Tht Tobacco World

^39

-iZ.J' OCTOBER

1939

ESTABLISHED

1681

TOBACCO TAXES 11.2;; OF
ALL REVENUE COLLECTIONS

While internal revenue collections from
all sources declined 8.4 per cent., collec-
tions of tobacco taxes increased 2.1 per
cent, in the fiscal year 1938 1939 ended
June 30, as compared to the 1937-1938
fiscal year, according to the figures re-
cently released by the U. S. Treasury
Department, Bureau of Internal Revenue.
Total Internal Revenue collections were
$5,181,573,952.58, as compared to $5,658,-
765,314.33 in the previous year. Tobacco
taxes amounted to $580,159,205.74, as
compared to $568,181,967.53, thus rising
from 10.4 per cent, of the total last year
to 11.2 per cent, of the total this year.

HoBART B. Hankins — Editor

Business Manager — B. S. Phillips

SCIENCE POINTS THE WAY TO

V

BO\NL" ItSlS,

S6 DEGREES

\

HERE'S an interesting fact for
every pipe fan who's in the
market for a cooler smoke! Recent
smoking machine tests by experts
to find the coo/esf-smoking tobacco
resulted as shown above. PRINCE
ALBERT, THE COOLER, MILD-
ER TOBACCO, doesn't bite the
tongue and has a delightful flavor!
No excess parching heat to flatten
taste, kill smoking pleasure. Prince
Albert's ripe taste, mellow body,
full fragrance are ALL THERE,
thanks to choice tobaccos, "crimp
cut'' and "no-bite" treated. Feature
PA. -for real SMOKING COM-
FORT—true smoke-joy!

C^ pipefuls of fragrant
%9\^ tobacco in every
handy tin of Prince Albert

7t\ ""* roll -your -own
■ " cigarettes in every
handy tin of Prince Albeit

'^m

L-

/

MICROMAX

. . . one of the automalic smok-
iri'j. and hrat-ref^istering ma-
chines that uere used by scientists to burn tobaccos
automatically and record the temperature changes.
Tht'se comjiletcly mechanical, accurate tests on 31
of the largest-selling tobaccos gave the verdict on
COOLER SMOKING to "crimp cut" PRINCE
ALBERT!

PRINCE ALBERTS
COOLER SMOKING

GIVES MY PIPE FANS
RICHER-TASTING YET
MILDER SMOKING,,
YOU BET RA.

lAKES SALES HUM!

MY 'makin's' customers:

JOa SURE FAVOR CRIMP_^

CUT PRINCE ALBERT

FOR MELLOWER

YET FULL-BODIED

SMOKING— AND

FASTER ROLUNG

TOO!

/^

X

/^ftce/Me^

(,,iii .It, I'l-i. K .1, Iti-M... .1 l,,|.ni-iM r,,.. Win-li.n Salem, N.O.

THE NATIONAL
JOY SMOKE

THE TOBACCO WORLD

Vol. 59

OCTOBER, 1939

No. 10

OW is the time for all good Americans to do
their part to keep us out of war. The way
for us to do that is for each one of us to guard
against talking us into the war. The less time
each one of us gives now to fighting the war with our
tongues, the slimmer the chance that we or our sons
will have to fight it with guns. If there ever was a
time in the history of our nation when there was need
for unity, it is now. That unity will be the better
maintained if each one of us will ascribe to those who
differ from us in their thinking the same honorable
desire for peace and non-participation in the war that
we ourselves profess. If we must seem inconsistent
at times, let*s not let that bother us.

T WAS Emerson who said that a foolish con-
sistency is the hobgoblin of little minds, adored
by little statesmen and philosophers and di-
vines. He might have added that one good
measure of a man is whether he can pocket his pride
and say, *T made a mistake" — and say it quickly with
a smile. It may be said that people divide themselves
into two classes: those who feel they have lowered
themselves by admitting a mistake, and so try in every
way to pass the buck, and those who come out in forth-
right fashion and admit the facts. Almost always the
latter group make better members of any organization
and go farther up the ladder.

[|HE scientists, of course, have no false pride
at all. It is a point of honor with them to
publish their errors promptly and without re-
serve. If you read the proceedings of any
scientific society you will find members rising to say,
**At last year's session we presented the results of
certain researches that seemed to lead to such and such
conclusions. Now, after further studies, we are pre-
pared to state that everything we told you then was
cockeyed. ' ' Businessmen are better than they used to
be in this respect. The crusty old boss of two or
three generations ago fought his way up by backing
his own judgment against the world, and grew more
vigorously positive as the years went by. He pounded
his desk and roared his decisions, and woe to those
who dared to doubt or disagree. Today's executive is
usually a graduate of college, and often of a school of
business administration. He has studied enough his-
tory to know how often the wisest leaders have made
mistakes, and enough political economy to doubt
whether there really is anything of that name that can
yet deserve to be termed a science. When he makes
an error, he does not hesitate to say in quiet tones : **I
pulled a boner there."

OCTORS and lawyers tend to roUn(iuish their
errors a bit more reluctantly. Uneducated men
generally are more positive than the educated,
and men of limited experience more set in their
views than those whose activities have led them
through a variety of circumstances. But of all the
occupations to which men devote tlieir lives politics
seems the one wherein they find it hardest to admit
that they could have been wrong. Scientists may err ;
businessmen may show losses instead of profits; doc-
tors and lawyers may acknowledge tliat the progress
of research has made old ideas and methods obsolete.
Politicians alone cling to the musty notion that an
admission of error is a confession of weakness. For
their unyielding attachment to the assumi)tion of
omniscience, a fabulous cost is laid upon the peoples
of all nations. A friend of ours, an admirer of Oliver
Cromwell, suggests that a Cromwell plea should be
translated into every language and hung in the office
of every politician from the lowliest to the most ex-
alted in every land: 'Tn the bowels of the Lord, I be-
seech you, brethren, consider it possible that you may
have been mistaken."

HILE we're on the subject of quotations, hear
ye this one from George Horace Lorinier, for
many years editor of the Saturday Evening
Post: ** You can trust any number of men with
your money, but mightj^ few with your rei)utation.
Half the employees who are with a business on pay day
are against it other days. It is wise for every person
of business to keep to himself his dislikes. Tell only
your likes. It is detrimental to talk about either.
Silence is golden. Tact is the knack of keeping quiet
at the right time, and being so agreeable that no one
can be disagreeable in your presence. A tactful man
can pull the stinger from a bee without getting stung.
Some people can see only above them, and others can
see only under them, but a good man is cross-eyed and
can see both ways at once, making the inferior i)erson
feel comfortable at least. In all dealings, keep in mind
that today is your best chance ; that tomorrow presents
an opportunity for the other fellow. Let loyalty be
your watchword and your friends will be numbered
from people in every walk of life.'*

]LL this may seem a far cry from the subject
of war and the rumors of war. That is pre-
cisely true, but it is all close to the subject of
peace, and not in the sense of the feeling that
we'll have peace even if we have to fight for it. It is
the peace that will be best preserved by each one of us
doing his workaday job the best he knows how.

The TOBACCO WORLD (est. 1881) is published by Tobacco World Corporation; Hob»rt B. Hankins, President and Treasurer; B. S. Phillips, Vice-President; John Cleary,
Secretary. OflSce. 236 Chestnut Street, Philadelphia, Pa. Issued monthly. Subscriptions, available only to those engaged in the tobacco industry or trade, Jl.OO *ye*r.
15 cents a copy; foreign. $1.75 a year. Entered as second-class mail matter. December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3. 1879.

General Gains Registered in August

U. S. Cigars Up 4.89% in 8 Months

Only Large Cigarettes Fail to Share in

Months Increases; Cigars Up 4.95X

Snuff Records Biggest Rise— 1635X

Little Cigars, Cigarettes and Snuff

Continue in Plus Column to Date,

Cigarette Withdrawals Increase 4*93'fo

UOrST was a bit»' month in the tobacco busi-
ness. The Supplement to the Tobacco
]^aiometer of the Tobacco Merchants Asso-
ciation of the United States rei)orts increases
in withdrawals for consumption in every total classifi-
cation excej)! the almost neiili.uible one of large cigar-
ettes, wiiich had only 211),4()() in August last year and
193,270 this year. The i)ercentages of gain in the
other classifications were as follows : all classes of
cigars, 4.9.") per cent.: little cigars, 'AA:) per cent.;
cigarettes, 4.28 i)er cent.; snuff, IG.oo per cent.; chew-
ing and smoking tol)acco, H.49 per cent. The decline
in large cigarettes was 20.74 i)er cent.

In cigars, Classes A and D gained; the otliers lost.
The U. S" total for all classes was 500,807,2;'>6, as com-
pared with 477,r)<)r),984, an increase of 2:5,211,252, or
4.86 per cent. This rate of gain was heightened by a
Philippine Islands gain of 1,301,500, or 6.64 i)er cent.,
and a Puerto Rico rise of 102,250, or 71.20 per cent.

Class A in the T. S. totaled 456,252,755, as com-
pared with 427,809,885, an increase of 28,442,870, or
6.65 per cent. The P. 1. witlidrawals increased
1,151,095, or 5.89 per cent., and the P. iv. product

showed an advance of 128,050, or 177.97 per cent.

Class B totaled in the U. S. 3,20J,970, as com-
l)ared with 4,967,737, a decline of 1,757,767, or 35.38
l)er cent. P. 1. was even with last year at 4250, while
P. P. registered an increase of 485(i, or 76.38 per cent.

(^lass C totaled 38,369,248 in the V. S. as com-
pared with 41,751,342, a loss of 3,382,094, or 8.10 per
cent. There was a P. 1. gain of 15,070 and a P. K. loss
of 30,850.

Class D totaled 2,768,928 in the U. S. as compared
with 2,808,923, a drop of 39,:Ui5, or 1.40 per cent. Tliis
class was shifted to the i)lus column, however, by a
P. 1. gain of 141,210 and a P. P. gain of 200.

Class E totaled 206,335 in the V. S. as compared
with 258,727, a move in the wrong direction of 52,392,
or 20.25 per cent. P. 1. withdrawals in this class
totaled only 150, as compared with 6020.

Cigarettes m the l. S. totaled 16,571,041,957, as
compared with 15,891,586,977, an increase of 679,454,-
980, or 4.2S per cent. P. I. increased 7400 and P. R.
increased 176,200.

Following are the comparative figures for August
of both years:

Product

Cigars:

Class A—

United States

Philippine Islands . . .

August, 1939

456.252.755

20.708.000

200.000

+
+

+
+

+

4-
+

+

Increase or
Quantity

28.442.870

1,151.095

128,050

Decrease
Per Cent.

6.65
5.89

Product

Total All Classes:

United States

i'hilippine Islands . . .
Puerto Rico

Grand Total

Little Cigars:

United States

Philippine Islands . . .
i'uerto Rico

Total

Cigarettes:

I'nited States

Philippine Islands . . .
I'uerto Rico

Total

Large Cigarettes:

United States

Philippine Islands ...
Puerto Rico

Total

Snuff (lbs.):

All United States . .

Tobacco (Chewing and

Smoking) lbs. :

United States

Philippine Islands . .

Total

August, 1939

500,807,236

20,901,180

245,850

+
+
+

4-

+

+

+
+
+

+

4-
+

Increase or
Quantity

23,211,252

1,301,505

102,250

Decrease
Per Cent.

4.86
6.64

Puerto Rico

521.954.266

24,615,007
347,287

4.95

Total

477,101,355

29.722,015

1.757,767
'4,850

6.64

10,474,187

Class B—

United States

3,209.970

4,250

11,200

*

35.38

3.43

Philippine Islands . . .
Puerto Rico

10,474,187

347,287

3.43

Total

3,225,420

1,752.917

35.21

16,571,041,957
231.800
442,400

679,454,980

7,400

176,200

4 ^O

Class C —

United States

Philippine Islands . . .
Puerto Rico

38,369.248
21.470
33,650

3,382,094
15.070
30.850

8.10

4.28

16.571,716,157

679,638,580

4.28

193,270
25,666

26,130

'si'fibb

Total

38,424.368

3,397.874

8.12

11.91

Cla>s 1)

2,768,928

166.710
1.000

39,365

141.210

200

1.40

United States

Philippine Islands . . .
Puerto Rico

218,270

57,130

20.74

3,451,554

485,106

Total

2,936,638

102,045

3.60

16.35

Class E —

United States

Philippine Islands . , .
Puerto Rico

206,335
150

52.392
5.870

20.25

29,839,260

2,334,500

8.49

Total

206.485

58,262

22.01

29.839,260

2,334.500

8.49

XCREASES in four chissifications — cigars,
little cigars, cigarettes, snuff ^ — and declines in
tw^o classitications — large cigarettes, smoking
and chewing tobacco — that tells the story of
the tobacco business for the first eight months this
year, as recorded in withdrawals for consumption and
reported to the industry in the Sui)plement to the To-
bacco Barometer of the Tobacco ^lerchants Associa-
tion of the United States.

Cigars of all classes in the U. S. totaled 3,4.36,997,-
674, as compared with 3,276,758,131, an increase of
160,239,543, or 4.89 ijcr cent. This rate was reduced
to 4.77 per cent., however, by a lower increase in the
Philil)pine Islands pi'oduct — 1.64 i)er cent. — and a drop
of 1.80 per cent, in the Puerto Kico product.

Class A totaled 3,115,355,120 in the U. S., as com-
pared with 2,933,129,535, or 6.21 per cent. The net
percentage of gain was 6.03 when the 1.56 i)er cent, of
P. I. gain and the 154,490 P. K. gain was added.

Class B totaled 25,197,529 in the U. S. as com-
pared with 32,439,520, a loss of 7,241,991, or 22.32 per
cent. P. I. recorded a loss of 5220 and P. K. a gain
of 66,700, making a net decrease of 22.08 per cent.

Class C totaled 275,065 in the U. S. as compared
with 288,945,770, a drop of 13,880,020, or 4.80 per

1st 8 Mos. Increase or Decrease

Product CaL Yr. 1939 Quantity Per Cent.

Cigars :
Class A—

United States 3.115.355.120 + 182.225.585

Philippine Islands ... 125.98().875 + 1.936,105

Puerto Rico 752,990 -|- 154.490

Total 3,242,094,985 + 184,316,180

Class B —

United States 25,197,529 — 7,241,991

PhiHppine Islands ... 23,080 — 5.220

Puerto Rico 123,200 + 66,700

Total .*. 25.343,809 — 7,180,511

Class C —

United States 275,065.750 — 13,880,020

Philippine Islands ... 194,104 + 6,318

Puerto Rico 166,400 — 240,300

Total '. 275,426,254 — 14,114,002

Class D—

United States 19,519.868 — 995,381

Philippine Islands ... 225,251 -\- 102,198

Puerto Rico 1,500

Total 19,746,619 — 893,183

Class E—

United States 1,859.407 -|- 131.350

PhiHppine Islands ... ■ 13,821 -|- 5..124

Puerto Rico

Total 1,873,228 + 136,674

6.21
1.56

6.03

77 X7

22.08

4.80

4.87

4.85

4.33

7.60

7.87

cent. P. I. gained 6318 and P. R. lost 240,300, so that
the net loss in this class was 4.97 per cent.

(lass D totaled 19,519,868 in the V. S. as com-
pared with 20,515,249, a decrease of 995,:]S1, or 4.85
per cent. P. I. gained 102,198 and P. 11. broke even
at 1500, thus lowering the percentage of decrease to
4.33 ])er cent.

Class E totaled 1,859,407 in the U. 8. as compared
with 1,72!),057, an increase of 131,350, or 7.60 per cent.
There was an increase of 5324 in the P. 1. withdrawals,
bringing the percentage of increase up to 7.87.

U. S. cigarettes in the eight months rrached the
total of 115,628,113,270. This'eompares with 109,(;21,-
541,119, an increase of 160,239,54:5, or 4.93 per cent.
P. I. cigarettes increased 432,674 (from 4()0,5!).") to
893,267) and P. P. cigarettes went up 1,30!),150 (fi-om
2,741,080 to 4,050,230). The grand total of cigarettes
was 115,033,056,767, as comiiared with 109,624,742,792,
an increase of 5,408,313,975.

Little cigars, all P. 8., totaled 108,704,947, as com-
pared with 96,974,379, a gain of 12.10 per cent.

Large cigarettes declined 3.78 per eent.; snuff in-
creased 6.23 per cent. ; smoking and chewing lost 0.27
per cent.

Following are the eight months' figures for this
year and last year:

1st 8 Mos. Increase or Decrease

Product • Cal. Yr. 1939 Quantity Per Cent.

Total All Classes:

United States 3.436,997.674 -|- 160,239.543 4.89

PhiHppine Islands ... 126.443,131 + 2,044,725 1.64

Puerto Rico 1.044,090 — 19,110 1.80

Grand Total 3,564.484.895 + 162,265,158 4.77

Little Cigars:

United States 108,704,947 + 11,730.568 12.10

Philippine Islands ... ....

Puerto Rico ■ ■ • .

Total 108,704,947 + 11.730,568 12.10

Cigarettes:

United States 115,028,113,270 + 5.406,572,151 4.93

Philippine Islands ... 893,267 + 4.^2.674

Puerto Rico 4,050,230 -|- 1,309,150

Total 115,033.O56.7()7 + 5.4(18.313.975 4.93

Large Cigarettes:

United States 1.624.146 -|- 5,476 0.34

Philippine Islands ... 121 — 40

Puerto Rico 124,700 — 74,150 37.29

Total 1,748,967 — ^'8.714 3.78

SnuflF (Ihs.):

All United States ... 25.595.477 -|- 1,501,650 6.23

Tobacco (ChewinK and
Smoking) lbs.:

United States 202,106,785 — 547,588 0.27

Philippine Islands ... 564 -|- 517

Total 202,107,349 — 547,074 0.27

The Tobacco World

October, ig,^9

Amendments to Tobacco Provisions

A Letter from Secretary Henry A. Wallace

Tobacco Week Officially Proclaimed

HE Department of Agriculture has made pub-
lic the following letter from Secretary Henry
A. Wallace to flue-cured tobacco growers: "As
a result of the large tobacco crop of this year
and the recent withdrawal from the market of the buy-
ers for the British trade, growers of flue-cured tobacco
are confronted with what is considered by many to be
the most serious crisis they have ever experienced in
marketing their crop.

"At the close of business on September 8, the Im-
perial Tobacco Company withdrew its buyers from the
market. The European war, which caused the Imperial
buyers to be withdrawn, also caused other British com-
panies to withdraw orders for further purchases of
flue-cured tobacco at this time. In recent years about
one-third of all flue-cured tobacco produced in this
country has been exported to Great Britain.

"Thus to the difficulty already caused by the 200
million pound surplus from the billion pound 1939 crop
was added withdrawal from the market of buyers who
had been counted upon to purchase a large part of
the crop. With nearly 600 million pounds of
tobacco still to be sold by farmers, warehouse-
men and buyers knew that if the markets were
kept open prices would drop far below those paid
through September 8. Therefore, they closed the ware-
houses, as soon as the floors could be cleared, until
plans could be developed to meet the emergency.

"Everything possible is being done to get the buy-
ers for the British trade to go back on the market and
to take their normal purchases. The result of these
efforts probably will not be known for some time. In
the meantime, the most important matter is the deci-
sion as to the size of the 1940 crop of tobacco. Growers
will be given an opportunity to vote on this question in
a referendum. At the same time, plans are being made
as to the action to be taken in case foreign buyers do
not return to the market and take their usual purchases.
It is realized that it w^ould not be sound to undertake to
sustain prices unless farmers decided to support the
program by regulating marketings in 1940.

"It is my duty to point out further that even with
regulated marketings it is not certain that prices can
be maintained at levels prevailing before the markets
were closed. Without regulated marketings I do not
know how low prices w^ould go for the remainder of
this crop or for the 1940 crop.

"It was intended before the present emergency to
issue farm acreage allotments before holding a refer-
endum for 1940. However, about two months would be
required to determine allotments equitably and issue
them to farmers. It is apparent that holding of the ref-
erendum, opening the markets, and taking of action to
support prices, can not be delayed for so long without
inflicting severe hardships on individual farmers and
demoralizing business generally. Therefore, the state-
ments below are made in order that farmers may be in-
formed accurately of the major changes made by
amendments to the tobacco provisions of the Agri-
cultural Adjustment Act at the last session of Congress
and in order that they may know the probable minimum
figures below which no allotment will be set.

"Under the amendments each farm will have an
acreage allotment and if the acreage harvested does
not exceed this allotment, the entire production, no mat-
ter how high the yield per acre, can be marketed with-
out penalty. Since any cooperating farmer can sell the
entire production in his acreage allotment, there will
be no transfer of quotas from one farm to another.

"Allotments for small farms will first be calculated
so as to be comparable with allotments for larger farms
and then they will be increased by 20 per cent, but not
above the acreage which, with a normal yield, would
produce 3200 pounds of tobacco. For example, if the
allotment computed for a farm for 1940 is two acres
and the normal yield is 200 pounds (100 pounds per
acre) then the allotment will be increased to 2.4 acres.
On the other hand, if the allotment is 3 acres and the
normal yield 3000 pounds (100 pounds per acre), then
the allotment will be increased to only 3.2 acres rather
than by 20 per cent. The increase of allotments for
small farms is limited strictly to farms not operated,
controlled, or directed by a person who also operates,
controls, or directs another farm on which tobacco was
produced.

"The last amendment of interest to farmers pro-
vides a flat penalty of 10 cents per pound on all sales
of tobacco in excess of the actual production on the
acreage allotment for the farm.

* * In connection with allotments, the following facts
may be helpful. Under the regulations which have been
prescribed it is extremely unlikely that the 1940
acre allotment for any regular or old tobacco farm will
be reduced more than 20 per cent., or 1/5, below the
1939 allotment of 'acres to plant,' unless an error
is found in the figures used in calculating the 1939 acre-
age allotment. Any farm on which the harvested acre-
age in 1939 w^as materially larger than the 1939 allot-
ment can not count upon receiving an increased
allotment in 1940 by reason of having planted the
larger acreage, but may receive some increase in the
1939 allotment if it is justified by the land, labor and
equipment found to be available for tobacco after con-
sidering other cash crops on the farm. For farms on
which tobacco was grown in 1939 without an acreage
allotment, the allotment will be based on 1/5 of the
1939 harvested acreage adjusted up or down by local
and county committees on the basis of crop rotation
practices and the land, labor and equipment available
for tobacco as compared with other farms similarly
situated in the community.

* * I regret, and I am sure you do, that this situation
has arisen. Its full correction may require more than
one year. The Department of Agriculture and other
government agencies will exert every sound and equi-
table effort to meet this situation but its final solution
will depend upon cooperation by you and other
growers. ' '

KENT LORILLARD DIRECTOR

H. A. Kent, in charge of sales of Old Gold and other
popular-priced cigarettes for P. Lorillard Co., Inc., was
elected a director of that organization at a meeting of
the board held at the company's New York offices
August 30th.

The Tobacco World

^ITH the signing of a proclamation by Mayor
A CI Kelly of Chicago, Tobacco Week becomes offi-
cial commencing January 15, 1940. This will
be celebrated in connection with the eighth an-
nual N. A. T. D. convention-exhibit at the Palmer
House, Chicago, January 17-20, 1940. This friendly
gesture to the N. A. T. D. lends credence to the fact
that Chicago once more is desirous of playing host to
distributors and manufacturers to even a greater de-
gree than last year.

With all branches of the tobacco industry uniting
in an effort to co-ordinate themselves into one vast co-
operating unit, the 1940 Tobacco AVeek, therefore,
marks the scene and the beginning of one of the great-
est N. A. T. D. convention-exhibits of all times.

"Though last year's convention-exhibit w^as ac-
claimed by both manufacturer and distributor as the
most productive ever held," said Mr. Kolodny, "plans
now in formation promise to eclipse last year's high

mark."

A program crowded with valuable information and
constructive features will accrue beneficially to those
co-operating during Tobacco Week. To promote addi-
tional enthusiasm, several meritorious contests of
value to manufacturer, wholesaler and retailer prom-
ise to bring a great amount of activity to Chicago, the
likes of which have not been witnessed before.

Further details of the illuminating planks of the
program platform will be released to the trade between

now and the beginning of tobacco week.

Following is the text of the Mayor's proclama-
tion :

Whereas, the National Association of Tobacco
Distributors, Inc., a national organization represent-
ing wholesale tobacconists throughout the nation, has
designated the City of Chicago for its national con-
vention to be held on January 17, 18, 19, 20, 1940; and
Whereas, all branches of the tobacco industry and
the consuming public are vitally interested in and
affected by the problems of wholesale tobacco distrib-
utors ; and

Whereas, representatives of all branches of to-
bacco industry will be present at the said convention ;
and

Whereas, practically the entire population of the
city of Chicago is interested in tobacco either as con-
sumers or as direct participants in the activities of the
industry and is, therefore, concerned with its welfare;
Now, Therefore, I hereby ]H-oclaini tlie week com-
mencing January 14, 1940, as Tobacco Week in Chi-
cago for the purpose of honoring and giving recogni-
tion to the importance of the Tobacco Industry and the
prominent place it occupies in the economic structure
and welfare of the connnunity, and I do further request
the citizens, officials and residents of this city, in so far
as they can, to extend the hospitality of this city to
the representatives of the industry attending tliis con-
vention.

Regarding Sales Below Cost

By Joseph Kolodny

^E ARE addressing this letter to you in an earn-
yjfm ^'^^ ^'^^^^^'^ ^^ bespeak and enlist your co-opera-
tion in fostering respect for and securing com-
pliance with the legislation now in force in so
manv States prohil)iting sales below cost. The ahnost
universal adoption of these laws in one form or an-
other points eloquently and emphatically to a decisive
public policy, in the wholesale and retail distribution
of merchandise, to ban the loss-leader and other unfair
and predatory practices which have imperilled the ex-
istence of the small independent distributor, despite
the importance of the well-recognized economic func-
tion which he performs.

The persistence with which this public policy is
being pursued is evidenced by the legislator's deter-
mination to forge an effective remedy for the chaotic
conditions rampant in the distributive fields.

Originally it was thought that the adoption of
legislation providing for resale price maintenance
would solve the problem, because it was hoped that the
manufacturers of articles distributed under national
brands would avail themselves not only willingly but
eagerly of the opportunity afforded by this legislation
to protect the wholesalers and retailers upon whom the
manufacturers depend for the distribution of their

goods. p inii 1

Unfortunately, that hope has not been fulfilled as
fas as it concerns the principal cigarette manufactur-
ers in the tobacco industry. It was probably because
the large cigarette manufacturers as well as others thus

October, 1939

failed to take the initiative under the resale price
maintenance laws that various State legislatures
throughout the country decided the independent wliole-
* saler and retailer must be protected regardless of the
lack of interest in his welfare on the part of the big
manufacturers. With that end in view the States have
enacted a new and additional type of legislation involv-
ing a direct prohibition of sales below cost. By that
technique the legislative intention is made manifest to
afford the legitimate distributor at least a modicum of
relief against the loss-leader practitioner and the ex-
ponents of other unfair and destructive price-cutting

methods.

The extent to which this legislation has been
adopted is shown on a chart, which shows that in not
less than 23 States sales below cost as therein defined
are now contrary to law. This demonstration of pub-
lic opinion must, we are sure, convince you of the wis-
dom and the desirability to you of co-operating with
us in securing complete compliance with those laws.

We know you desire to obey these laws. We trust
you are sufficiently in sympathy with their objectives-
chief of which is the protection of the independent dis-
tributor—so that you will take an active interest m
seeing to it that these laws are respected and observed.

The question may suggest itself to you, "How can
we help in this direction!" The answer is extremely
simple. Your missionary and promotion men con-
stantly comb the entire country in great numbers. By
reason of their innumerable direct contacts with the

wholesale and retail trade their influence on merchan-
dising practices is tremendous. Specifically, what we
ask of you is that you instruct this branch of your per-
sonnel to ascertain the i)revalent minimum legal price
in the various areas in which they work, as far as they
are concerned, to see to it that this price is conformed
with. Certainly there should be no attempt on their
part to circumvent these laws. Any other course on the
part of your representatives would tend to subvert and
destrov the outstanding constructive work which has
been done in various conmiunities where legislation of
this character is in force.

Aside from the specific action which we suggest,
there can be no doubt concerning the far-reaching
effect of any general policy to favor these laws as ex-
pressed through your sales managers, your division
managers, and your miscellaneous personnel.

CANADIAN TOBACCO INDUSTRY

Official statistics made public by the Tobacco Serv-
ice of the Canadian Department of Agriculture, and
analyzed by the Tobacco Division, Department of Com-
merce, reveal that during the first five months of 1939,
as compared with the corresponding months of 1938,
imports of leaf tobacco decreased 4.56 per cent., and
exports of leaf increased 8.70 per cent. The analysis
shows, also, that withdrawals of cigarettes for con-
sumption advanced 1.35 per cent., and withdrawals of
cut tobacco 12.34 per cent., while withdrawals of plug
tobacco declined 1.80 per cent., cigars 12 per cent., and
withdrawals of imported leaf 25.20 per cent. With-
drawals of snuff for consumption were on a par w4th
those of the first five months of 1938.

During the first five months of 1939, Canada im-
ported 1,621,828 pounds of leaf tobacco, as against
1,695,833 in the like months of 1938. In the 1939 period,
the United States furnished 1,396,721 pounds (com-
pared with 1,565,365 in the corresponding 1938 period),
Cuba 54,502 (52,415), The Netherlands and Colonies
48,163 (24,557), other p:uropean countries 44,365 (5225),
other foreign countries 2430 (15), and Empire countries
75,647 (48,256).

Imports of leaf tobacco into Canada from the
United States during the first five months of 1939 con-
sisted of Bright Flue-Cured 1,321,378 pounds (1,277,-
733 in the like period of 1938), cigar leaf 62,821
(153,096), foreign leaf (Turkish) 2607 (38,367), and
unclassified 9915 (96,169).

'^Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue based on

manufacturers' returns of production)

Month of June

Increase or Decrease
Product 1939 Quantity Per Cent.

Plug 4,652,401 — 384.099 7.63

Twist 483.727 -|- 23,516 5.11

Fine-cut Chewing 460,748 -j- 33,792 7.91

Scrap Chewing 3,916,703 — 225.291 5.44

Smoking 17,979,150 + 861.052 5.03

Total 27.492.729 + 308,970 U4

Six Months Ending June 30

Increase or Decrease
Product 1939 Quantity Per Cent.

PIuj? 25,587.592 — 1.558,682 5.74

Twist 2.804.494 + 244.375 9.55

Fine-cut Chewing 2.294.964 — 80.069 3 37

Scrap Chewing 20,150.095 — 666.241. 3 20

Smoking 98.583,782 + 1,187.510 1.22

Total 149,420.927 — 873,107 0.58

*The production figures are in pounds, and are subject to revision
until publi.shed in the annual report of the Commissioner of Internal
Revenue .

8

ESTIMATED TOBACCO PRODUCTION

tIE combined production of all types of tobacco
is now indicated at 1,659,608,000 pounds, which
is approximately the same as was expected
on August 1. Last year 1,378,534,000 pounds
was liarvested, and the ten-year (1928-37) average
production is 1,360,400,000 pounds.

The flue-cured tobacco crop is now indicated at
1,014,670,000 pounds, compared with 1,028,460,000
pounds indicated on August 1, 785,731,000 pounds,
harvested last year, and the ten-year (1938-37) aver-
age production of 704,802,000 pounds. A decrease
since August 1 of about 21,000,000 pounds in the North
Carolina production of flue-cured tobacco due to loss
resulting- from insufficient curing facilities, is only par-
tially offset by an increase in Georgia, where sales of
the crop are now complete. Indicated production in
all other flue-cured tobacco States remains the same
as on August 1.

Fire-cured tobacco production is expected to be
97,197,000 pounds, which is an increase of 2,416,000
pounds since August 1. Last year 84,324,000 pounds
were harvested, and the ten-year (1928-37) average
production is 140,022,000 pounds. The increase during
Auugst is mainly due to improved prospects in the type
22, or Clarksville-IIopkinsville area.

During August there was an increase of 7,274,000
l)Ounds in the prospects of hurley tobacco. The pro-
duction of this class of tobacco is now indicated at 355,-
117,000 pounds, compared with 338,789,000 pounds har-
vested last year, and the ten-vear (1928-37) average
production of 315,689,000 pounds.

The production of Maryland tobacco is now indi-
cated at 28,804,000 pounds, compared with 29,250,000
pounds harvested last year, and the ten-year (1928-
37) average production of 25,217,000 pounds.

The dark air-cured tobacco crop is now indicated
at 37,383,000 pounds, which is an increase of about 1.3
pei^cent. over the August 1 prospects, compared with
37,789,000 i)ounds' harvested last year, and the ten-
year (1928-37) average pi-oduct'ion of 44,494,000
pounds.

Production of all classes of cigar tobacco is ex-
l)ected to be 126,437,000 pounds, compared with 119,-
993,000 i)ounds in prospect on August 1, 107,651,000
pounds harvested last year, and the ten-year (1928-37)
average production of 129,533,000 poun'ds. The indi-
cated production this year compared with last year by
classes is: filler, this year 52,465,000 pounds, last vear
45,580,000 pounds; binder, this year 62,687,000 pounds,
last year 53,042,000 i^ounds; and wrapper, this vear
11,285,000 pounds, last year 9,029,000 pounds.

REYNOLDS RENEWS "BLONDIE"

R. J. Reynolds Tobacco Company has renewed
both **Blondie" and Bob Crosby and His Orchestra
for Camel Cigarettes over the Columbia Network.
*'Blondie," a serial featuring Penny Singleton and
Arthur Lake, which began July 3, is heard over eighty-
seven CBS stations, IMonday, 7:30-8:00 P. M., rebroad-
cast 10:30 to 11 P. M. Bob Crosby and His Orchestra,
with Johnny Mercer, which went on the Columbia Net-
work June 27, broadcasts over eighty-eight CBS sta-
tions, Tuesday, 9:30-10 P. M. William C. Esty and
Co. is the agency for both shows.

The Tobacco World

Cigars are the
most pleaeurable
and economical
form of smoking.

first Issued 1929

BAYUK BULLETIN

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

OCTOBER, 1939

Prepared twice a month

PHULOFAX

{The Retailer^s Friend)

SAYS

Progressive cigar
dealers report very
pleasing sales of Cigars
by the Box for the Labor
Day week-end. Another
chance to sell Cigars by
the Box is Thanksgiving
Day, which will, also,

^^ „ dress rehearsal for our

ciars by the Box Sales Talk for
Christmas.

serve as a

6BE , BOSS , ONE SUP DON'T MAKE ME A FLOP /

v//////////////////y/My///,,^

On a survey of 42 comparable
stores, sales of Cigars in Five Packs
on last Saturday were as follows: —

2 sold no Five Packs

8 sold 2 Five Packs

22 sold 4 or more Five Packs

10 sold NONE

Of the latter 10, none handled Five
Packs. Naturally none could be sold.
Five Packs cannot be sold unless Five
Packs are on hand to be sold.

Put your screen doors and windows
away with care but wait until you
are sure the hot days are over.

Webster says a Customer is "one
wlio buys your goods" — that's the
old-fashioned meaning of the word.
The modem meaning says a "Cus-
tomer is one whom the Salesman gets
to SELL his product to the benefit
of both."

Phil extends thanks to all who
wrote him on the Otto Noebetter
article No. 39 on the subject of
"Volumn-E-Tis."

Hesitate a long while before you
say "It Can't Be Done."

rl CAN Be Honest

Honest with your trade and honest
with your firm; but most of all — be
honest with yourself. Turning a trick
in the belief of "getting away with
it" always reacts like a boomerang.
A slick sale to the dealer means sure
suicide with the dealer.

Even in a purely selfish view.
Honesty is the best policy because the
dividends all accrue to you.

—Frank Trufax

Eight and one-half billions Cigars
Wore consumed in 1920 . . . every new
cigar smoker is good for a minimum
of a thousand cigars a year . . .
cigars are the most pleasurable and
economical form of smoking . . .
pvery C. M. should be a C. B. . . .
somewhat of a tough job to B. C. if
you do not S. C. yourself . . . sell 5
Packs . . . sell Cigars by the Box.

:#«iiivoi^j^N

lJil|ft;i:^l/lf

nmmmmTfM

^illBiASftil

NO, OTTO, BUT HERE'S A
Tip THAT M16HT KEEP YOU

on top: it's all right
to be cocky but don't
get a cock-eyed
viewpoint!

■%

'^^'//////y////////a///////////////^^^^^

^^>^

"SALES-DOGGLING"

or How Not to Sell— No. 43

Manoman — the Boss thinks Otto is showing the symptoms
of a dangerous disease called Cocky-E-Tis and Otto gets a
little pale under the gills. But listen in to the Confab.

D. B. I.

•A$,ocial0dt»tth BAYUK CIGARS HVC, PhUa-
delphia-mmMttlnrt of fin* etgan ttnem 1897.

BOSS: Say, Otto, I was taking
a little ride last evening and
stopped at the Fence- Way Rest-
aurant out on the old Speedway
Pike and was surprised to learn
that they've been out of our Big
Item for over three months.
How come, Otto?

OTTO: Out of 600 or 700 of niy
customers handling our Big
Item, you just would have to
drop in on some one who doesn't
— what a phenomenal ferret
you are!

BOSS: Maybe so, Otto, maybe so
— but let's stick to the subject.
Why hasn't the Fence-Way
Restaurant got our Big Item —
can't you sell 'em ?

OTTO: Certainly I can sell 'em
but why such a fuss at one out-
let not handling our Big Item?
How's my sales on the Big
Item? Haven't I got a big in-
crease over last year?

BOSS: Yes, you have, Otto, but
your increase wouldn't be any
less if you sold the Fence-Way,
would it?

OTTO: What's just one outlet
got to do with an increase?

BOSS: Nothing much other
than serving to increase your in-
crease but, Otto, if you can sell
'em, why haven't you sold 'em?

OTTO: Oh cripes — you certainly
can ask questions. Well, here's
the answer, — I didn't sell the
Fence-Way because the last
time I was there the Buyer
wasn't in.

BOSS: Oh, I see . . . the Buyer
was out when you were in to
sell. That's no worse than you
weren't in when he was out to
buy. Isn't the Buyer ever at his
restaurant ?

OTTO: I guess he is but he
wasn't in when I was in.

BOSS: Righto, Otto, and now
he's out of our Big Item because
you stayed out when he WAS
in!

OTTO: With all your outs and
ins, you're getting me dizzy!

BOSS: Here's an "out" that you
could have used, — your "out"
was to say you couldn't sell the

Fence-Way but when you say
you could and can and then
don't, you are showing the
symptoms of a bad disease. The
disease is called Cocky-E-Tis.

It comes from success going to
your head and extracting the
energy from your feet. Of
course, it could be argued
whether you made the Big Item
a BIG Item or whether the Big
Item helped make you — but let's
say YOU made the Big Item.
Okay, you made it but now that
you think it's made, what do
you do to keep the Big Item big.

Three years ago, when the Big
Item was an infant, you nursed
and nourished it . . . you would
have gotten up in the middle
of the night to look after the
Big Item ... in other words,
three years ago, you would have
camped on the door-step of the
Fence-Way Restaurant to catch
the Buyer in but NOW what's
one more outlet on the Big
Item? Nothing, you think, but
let me tell you something. Big
Shot — the Bigness of our Big
Item is attributable to each and
every possible outlet handling
our Big Item and when you lose
one outlet, you weaken the
strength of the Big Item in all
the other outlets — and all be-
cause of Cocky-E-Tis ! !

OTTO: Gad, Boss, after that
diagnosis, I do feel a little wob-
bly in my knees — what's the

cure?

BOSS: Get down to earth —
wear the same size hat you had
when you were making the Big
Item big — get the lead out of
your feet and remember the Big
Item will remain big only as
long as it is KEPT big! You've
got to water the plant as care-
fully as you planted the seed!
What say, Otto, what say?

OTTO: Nothing for me to say —
it's me to DO and Fence-Way,
here I come ! !

L

Phillies

Havana Ribbon
Mapacuba
Charles Thomson
Prince Hamlet

BAYUK BRANDS BUILD BUSINESS

Adt

STATEMENT OF THE OWNERSHIP, MANAGEMENT, CIR-
CULATION, ETC, REQUIRED BY THE ACTS OF CON-
GRESS OF AUGUST 24, 1912, AND MARCH 3, 1933.

Of THE TOBACCO WORLD, Published Monthly at Philadelphia, Pcnna., for

October, 1939.

ss.

State of Pennsylvania,
County of Philadelphia,

Before me, a Notary Public in and for the State and County aforesaid, per-
sonally appeared B. S. Phillips, who, having been duly sworn according to
law, deposes and savs that she is the business manager of FHt lUBACLU
WOKLl). and that the following is, to the best of her knowledge and beUet, a
true statement of the ownership, management (and if a daily paper, the circula-
tion), etc., of the aforesaid publication for the date shown in the above caption,
required by the Act of August 24, 1912, embodied in Section 411, Postal Laws and
Regulations, printed en the reverse of this form, to wit:

1. That the names and addresses of publisher, editor, managing editor, and
business manager are:

Publisher— The Tobacco World Corporation, 236 Che^nut Street, Philadel-
phia, Pa.
Editor— Hobart B. Hankins, 236 Chestnut Street, Philadelphia, Pa.
Managing Editor— None.
Business Manager— B. S. Phillips, 236 Chestnut Street, Philadelphia, Pa.

2. That the owner is: (If owned by a corporation, its name and address must
be stated and also immediately thereunder the names and addresses of stock-
holders owning or holding one per cent or more of total amount of stock. If not
owned by a corporation, the names and addresses of the individual owners must
be given. If owned by a firm, company, or other unincorporated concern, its name
and address, as well as those of each individual member, must be given.)

The Tobacco World Corporation, 236 Chestnut Street, Philadelphia, Pa.
Hobart B. Hankins, 236 Chestnut Street, Philadelphia, Pa.

3. That the known bondholders, mortgagees, and other security holders owning
or holding 1 per cent or more of total amount of bonds, mortgages or other securi-
ties are: (If there are none, so state.)

None. . , , . . ,

4. That the two paragraphs next above, giving the names of the owners, stock-
holders, and security holders, if any, contain not only the list of stockholders and
security holders as they appear upon the books of the company but also, in cases
where the stockholder or security holder appears upon the books of the company
as trustee or in any other fiduciary relation, the name of the person or corporation
for whom such trustee is acting, is given; also that the said two paragraphs con-
tain statements embracing affiant's full knowledge and belief as to the circum-
stances and conditions under which stockholders and security holders who do not
appeal upon the books of tne company as trustees, hold stock and securities in a
capacity other than that of a bona fide owner; and this affiant has no reason to
believe that any other person, association, or corporation has any interest direct
or indirect in the said stock, bonds, or other securities than as so stated by him.

5. That the average number of copies of each issue of this publication sold or
distributed, through the mails or otherwise, to paid subscribers during the six

months preceding the date shown above is (This information is

required from daily publications only.)

HOBART B. HANKINS,

Editor.

Sworn to and subscribed before me this
22d day of September, 1939.
.SAMUEL LIPMAX.
(Seal) Notary Public.

My commission expires May 25, 1940.

PHILIPPINE TOBACCO MARKET

The Philippine tobacco market in July, 1939, was
featured by a fairly substantial improvement in leaf
tobacco prices, due to the small size of the 1939 crop,
coupled w^ith unusually good export demand. Reports
indicate that the quality of the crop is considerably
better than anticipated. July, 1939, tobacco exports
fell to the lowest point since November, 1938, due to the
cessation of shipments to Spain, and were 80 per cent,
under those of June, 1939; but the total for the first
seven months of 1939 was 146 per cent, over the same
period of 1938. Shipments in July, 1939, totaled 467,-

000 kilograms, China taking 16,000, France 4000, North
Africa 21,000, and the United States 417,000. (Hgar
exports to the United States reached 21,000,000 units,
or 11 per cent, over those of June, 1939. Total cigar
shipments during the first seven months of 1939 were

1 per cent, under exports in the like months of 1938.
July, 1939, cigar exports to other countries showed a
seasonal drop, totaling 500,000 units, while the total
for the first seven months of 1939 was 60 per cent, over
that of January -July, 1938. It is claimed that the Phil-
ippine cigar industry is much encouraged by the pas-
sage by the United States Congress of the Philippine
economic readjustment measure, which will permit ex-
ports to the United States to be maintained during the
Commonwealth period.

zo

CUBAN EXPORT TRADE IN TOBACCO

HE export trade of Cuba in tobacco and tobacco
manufactures during July, 1939, was valued at
$1,211,521, as compared with $1,167,239 in
June, 1939, and $1,310,429 in July, 1938. Total
leaf shipments in July, 1939, of 1,957,978 pounds, valued
at $897,751, registered a decline of 35 per cent, in vol-
ume and 14 per cent, in value, as against 3,020,011
pounds, valued at $1,046,976, in July, 1938.

As reported in a review of Cuban official data, from
the American (Consulate General, Havana, made avail-
able to the trade by the Tobacco Division, Department
of Commerce, the value of total tobacco exports during
the first seven months of 1939 amounted to $8,005,889,
in comparison with $8,662,797 in the same period of
1938. Cuban shipments of leaf tobacco during January-
July, 1939, fell 9 per cent, in volume, and 10 per cent,
in value, to 16,407,383 pounds, valued at $6,127,929,
from 18,022,876 pounds, valued at $6,805,091, in the like
period of 1938.

Exports to the United States in July, 1939, con-
sisted of 79,313 pounds of wrapper tobacco, valued at
$130,043; 195,142 pounds of filler tobacco ($95,179);
791,685 pounds of stem leaf tobacco ($471,068) ; 444,053
pounds of scrap tobacco ($118,590) ; 212,010 cigars
($23,035); 8700 cigarettes ($22), and 121 pounds of
femoking tobacco ($82). The total value of all tobacco
exports to the United States in July, 1939, amounted to
$838,019, as against $843,336 in the preceding month.

The outstanding feature in Cuban tobacco exports
during July, 1939, was the sale to Germany of 254,803
pounds of very low-grade filler tobacco, valued at
$34,632, the average price per kilogram being only 30
cents. Other outstanding features of Julv exports were
the sales to France of 186,900 cigars, valued at $21,943,
and to Peru of 316,400 cigarettes ($1017). Of the 3671
pounds of smoking tobacco ($2120), approximately 95
per cent, of it went to three countries — the United
Kingdom, Chile, and Argentina.

The average price of Cuban leaf tobacco exported
in July, 1939, was 46 cents per pound, whereas in July,

1938, the average vahie was 34 cents, this increase being
due to the fact that in July, 1938, filler tobacco sold at
an average of only 20 cents per pound, while in July,

1939, the average price was 27 cents. Wrapper and
stemmed leaf tobacco actually showed a considerable
decline in the average price per pound received in July,
1939, as compared with July, 1938.

During the first seven months of 1939, the value of
all Cuban tobacco shipments to the United States,
amounting to $4,958,372, showed a 2 per cent, gain over
a value of $4,877,616 in the corresponding months of
1938. Cuba's trade in leaf tobacco with the United
States during the seven-month period of 1939 reached
8,695,994 pounds, valued at $4,819,448, an improvement
of 7 per cent in volume, and 1 per cent, in value, over
8,159,231 pounds, valued at $4,763,207, in the 1938
period.

BEN BERNIE TO RETURN

The American Tobacco Company, manufacturers
of Half & Half Smoking Tobacco, will return Ben Ber-
nie and All the Lads, with Lew Jjehr, to a network
of fifty-five CBS stations on Sunday, October 8, 5-5 :30
P. M. (rebroadcast 12 mid. -12:30 A. M.) The program
went off the air in June. Young & Rubicam is the
agency.

The Tobacco World

BURLEY REFERENDUM

NSTKU(1TI0NS for holding a referendum on
Burley tobacco marketing quotas for the 1940
crop have been approved by the Secretary of
Agriculture. Although the Secretary has not
proclaimed a quota, the size of the 1939 Burely
tobacco crop apparently will bring supplies to a level
requiring the proclamation of a quota not later than
December 1, which is set by law as the latest date for
proclaiming a quota. The referendum must be held
within 30 days after the proclamation.

The Secretary of Agriculture is required to pro-
claim a national quota when the total supply is above
the reserve supply level. This level is fixed in the 1938
Agricultural Adjusment Act at 5 per cent, above the
"normal supply," which is 275 per cent, of a normal
year's domestic consmnption, and 165 per cent, of a
normal year's exports.

The crop estimate on September 11 placed the 1939
production at 355,117,000 pounds as compared with last
year's crop of 338,789,000 pounds.

Approval of referendum instructions and forms at
this time will permit county and community commit-
tees to begin work at an early date on the preparation
of registration lists of persons eligible to vote. Any per-
son is eligible to vote who, as a bona fide farm owner or
operator, tenant or sharecropper received a share of
the proceeds of the 1939 Burley crop.

The instructions require that notice be given lo-
cally of the registration in order that persons eligible
to vote may register at the county office or other des-
ignated local place. For most farms information al-
ready available on records obtained under the 1939
Agricultural Conservation Program will show the per-
sons who are eligible to vote. Any i)erson not regis-
tered before the date of the referendum will have his
eligibility to vote challenged.

As in former tobacco referendums, balloting will
be secret and polling places will be designated in local
communities. Three local persons will be in charge
of each connnunity polling place.

STAMP METERING MACHINES

Wisconsin's state treasury department. New
Hampshire's state tax commission, and Ohio's state
department of taxation, have issued regulations per-
mitting authorized to])acco distributoi-s to empl<3y me-
tering machines to imprint state tax stamps directly
onto cigarette packages at high si)eed. The method
is offered as an alternative to sticking on stamps. The
machines and meters, somewhat similar to postage me-
ters, will be licensed by the state and distributed by
The Postage Meter Co. of Stamford, Conn.

The streamlined ''metered" tax stamp, alieady fa-
miliar to millions of smokers in other states, was sanc-
tioned following requests made by jobbers for a less
burdensome method. And the commission, in so rul-
ing, enables distributors to discharge their tax obli-
gations without incurring the additional tax costs, de-
lays and waste which surround the handling and
affixing of paper stamps or decalcomanias.

The payment and collection of the stamp tax will
be facilitated by the setting and reading of meter reg-
isters; and the cost of administration reduced by ob-
viating the expense of millions of paper stamps other-
wise needed.

October, J939

POPULAR LEADERS

By P. Lorillard Co

BEECH-NUT

LEADER

VAN

BIBBER

5for10<

SENSATION
20for10(

BETWEEN THE ACTS

IS^pkg- often

AValter II. Wheeler, Jr., president of the l*itiiey-
Bowes Postage Meter Co., which developed the new
device in co-operation -with several state tax oonimis-
sions, estimates stamp savings to the state ai)i)roxi-
niating $38,()()() annually. This, he stated, is based on
a large ''metered" percentage of the state's antici-
pated yeai'ly tax collections on sales of 300,000,000
cigarette i)ac'kages, and would be in addition to other
administrative economies. Unicpie protective elements
in the imprinted, metered tax stamps make them non-
negotiable and serve as deterrents to counterfeiting
and tax evasion, it is claimed.

The tax stamp meters are similar in their oper-
ation and revenue controls to the many thousands of
postage meters licensed by the V. S. Post Office De-
partment for use in business firms. Last year these
meters collected $106,000,000 of U. S. postage revenue,
or 16 per cent, of the total.

In recent months a dozen states and cities have
adopted metering machines to the work of collecting
stamp taxes on cigarettes, tobacco products, liiiuor and
wine.

PHILIPPINE PANETELAS POPULAR

David F. Morris, Phili])piiu' Tobacco Agent, re-
ports a large number of cigar jobbers and dealers
visiting San Francisco and the Philippine Pavilion at
the Fair. Recently he stated in a report that he was
surprised by the percentage of smokers that wanted
Panetela shaped cigars. Quite a few Manila numbers
were very popular with visitors.

ti

FAMOUS NEWS COMMENTATOR
NOW ON THE AIR FOR RALEIGH'S

Coast-to-coast network of CBS stations . . . every night but Saturday*

REMEMBER, MR. DEALER: there are four extra coupons in every
carton of Raleigh plain ends. Save these valuable coupons for extra
profits— cash or your choice of several dozen worthwhile premiums
Brown & Williamson Tobacco Corporation, Louisville, Ky.

*R>r time and station, see radio listings in your local paper.

CIGAR BOXES

Trt. Alcvnqtila 4-9S9

Established UTI

i&^»

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

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

FLAVORS FOR SMOKING and CHEWING TOBACCO

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

FRIES & BRO.. 92 Reade Street, New York

WINS FIRST PRIZE

The Reynolds Metals Company float took first
prize among thirty entries at the Fifth National To-
bacco Festival, held at South Boston, Va., on Septem-
ber 8. Designed by ^Irs. Hardin Reynolds, the float
was decorated entirely with Reynolds Metal, and bore
the slogan, "Tobacco's Best Friend for over 50
Years." Girls in gold and silver gowns, also made of
Reynolds Metal, added to tlie beauty of the entry. Over
150,000 visitors crowded South Boston, famous for its
tobacco markets, to witness the crowning of Mary Pick-
ford as "Regina Tobacco V" by Virginia's Governor
Price. (.'. F. Manning, secretary, and G. S. Xagle, as-
sistant general manager in charge of sales to the to-
bacco industry, represented the Reynolds Company at
the two-da V fete.

LIKE AMERICAN CIGARETTES.

Altliougli the importation of cigarettes from all
countries into Bermuda has remained practically sta-
tionary, American cigarettes are gradually supplanting
in popularity those from Great Britain. The value of
imports during 1938 was as follows: The United States
£18,734, and the United Kingdom £6,483, out of a total
value of £25,310; in 1937 cigarette imports from the
United States were valued at £15,900, and from the
United Kingdom £9,246, out of a total value of £25,165.

12

FLUE-CURED ALLOTMENTS

RCX^EDURE for establishing flue-cured to-
bacco acreage allotments was announced by the
Agricultural Adjustment Administration. The
allotments will apply to next year's Agricul-
tural Conservation Program and also to the marketing
quota program, if quotas are in effect for 1940. Au-
thority for using acreage allotments as the basis for
marketing (piotas is contained in a recent amendment
to the Agricultural Adjustment Act of 1938 which pro-
vides that the marketing quotas for farms will be the
actual production on their acreage allotment.

Farm allotments will be established by local AAA
connnittees, in accordance with the provisions of the
Agricultural Adjustment Act, on the basis of the past
tobacco acreage; land, labor and equipnient available
for the production of tobacco; crop rotation practices;
and the soil and other physical factors affecting the
production of tobacco.

The past tobacco acreage will be the average
harvested and diverted acreage of tobacco in the five
years 1935-1939, adjusted for abnormal conditions
affecting production. The five-year average acreage
will be adjusted by the local connnittees in each county
on the basis of land, labor and other factors, to an acre-
age which the committeemen consider as a fair and rea-
sonable "normal" acreage for the farm. The normal
acreage for all farms in each State will ])e adjusted so
as to equal the State acreage allotment, and the result-
ing acreages will be the farm acreage allotments.

For small independently operated farms on which
the nornud yield of tlie acreage allotment is less than
3200 pounds, the aHotment will be increased by 20 per
cent., but not above an acreage on which the normal
yield would be 3200 jiounds.

For new tobacco farms on which tobacco will be
produced in 1940 for the first time in five years, normal
aci-eages will be estal>lished by local connnittees on the
basis of the past tobacco experience of the farm oper-
ator on other farms, and the land, labor, and e(|uipment
available for tobacco production. The normal acreages
for all new farms will be adjusted so as to equal what-
ever small percentage of the total allotment may be
available for new farms.

Commenting on the i)rocedure, J. B. Hutson, As-
sistant AAA Administrator, said, ''The local commit-
tees will establish a normal or base acreage for each
farm. National and State allotments will not be an-
nounced until the work of determining these normal
acreages has been practically completed, since the over-
all figures are not needed in determining farm allot-

The Tobacco World

in'model minstrels

EVERY MONDAY NiGHT
COAST TO COAST

CBS

(Sii YOUl NtwsrAri* ro* local time)

Tom Howard soys he'd go
fo almost any lengfhs for a
pipeful of Model — and he
proves if when he lights
up this one, the daddy of
all his 846 pipes I

ments until after the normal acreages are ready to be
adjusted to bring them within the State allotments.
Also, it is desirable to obtain the latest information on
sui)plies and demand conditions before finally fixing the
national allotment.

"When the allotments are determined, each farmer
will be notified oT the allotment for his farm. In addi-
tion, allotments will be posted so as to be available for
l)ublic inspection. Any farmer who is dissatisfied with
his allotment will have an opportunity to file an appeal
with the Review Conmiittee consisting of persons other
than those who took part in establisliing the allotment.

*'lt may be well to point out," Mr. llutson said,
"that with the present excess su])ply of flue-cured to-
bacco, resulting from this year's large crop, the allot-
ments for all farms in 1940 necessarilv will be smaller
on the average than in 19.39. More than 2()0,()()0,000
pounds of tobacco will be added to stocks in the United
States and in foreign countries as a result of this year's

crop.

"This addition to stocks represents a surplus
which was not needed by the trade. This surplus will
be costly to farmers and means lower market ])rices
not only this year but in future years until supplies
are again brought into line with demand.

"The 1939 crop of near one billion ])ounds of flue-
cured tobacco is about one-third larger than the 1938
crop, but it may bring farmers a smaller total income
than the 175 million dollars received for the 1938 crop.
Farmers undoubtedly would lose money on another
crop of a billion ])ounds in 1940, and it would ])ring
them a much smaller income than a crop of around
700,000,000 pounds."

Jacobstad, Finland — (Special)— An air condi-
tioning system in the shadow of the Arctic Circle has
overcome production problems caused by extreme cold
and dry air in the cigarette factory of the A. B. ph. U.
Strengberg and Com])any at Jacobstad.

A (^arrier air conditioning system was shipped
from the United States in response to an emergency
call from the factory engineers. Here the problem was
to increase production and cut down waste in the stem-
ming process ; to prevent leaf breakage; retain a bright
color without stains and to i)roduce a final violent fer-
mentation in the sweating process.

I^nusual feature of the installation was that Car-
rier engineers found that o])timum conditions for man-
ufacturing cigarettes in Virginia, for example, gave
the best results in more frigid climate.

October. WS9

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter - for the Eye
It's Lighter - for Shipping
It's Better - for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. J.

EstablUlMd 1886

"BEST OF THE BEST

a

""•'•"■"- "' A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and K»o West. Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit, Mich.

Hellam, Pm.

Hanover, Pa.

rhiladelphia, Pa.

Wheeling, W. Va.

u

Tobacco Merchants' Association
Registration Bureau, ^tV ^^"cm

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, * 2.00

Duplicate Certificate, 2.00

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

Note li— 11 a report on a search of a title necessitates the reporting of more
than ten (10) titles, but less than twenty-one (21), an additional charge of One
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

NEW REGISTRATION

SOLVAY: — 46,738. For all tobacco products. Registered by Har-
veys, Inc., Syracuse, N. Y., on August 12, 1939.

TRANSFERRED REGISTRATIONS

SOLVEJG: — 46,587. lor all tobacco products. Registered Decem-
ber 14, \93(), by A. H. Finley, Scranton, Pa. Transferred to Har-
vey's, Inc., Syracuse, X. Y., on August 11, 1939.

CITY OF ROMA:— 38,672 (United Registration Bureau for the To-
bacco Industries). For cigars, cigarettes and tobacco; 21,130
(United States Patent Office), tor cigars. Registered by Umbert
Pucciani, Cleveland, Ohio, on April 27, 1914, and Albert Pucciani,
Cleveland, Ohio, on February 4, 1919, respectively. Transferred to
.\nthony Lazzaro, Cleveland, Ohio, on August 31, 1939.

HAVANA-SPEAR:— 38,702 (United Registration Bureau for the To-
bacco Industries). For cigars, cigarettes and tobacco. Registered
May 19, 1914, by Selak & Hoffman. Inc., Wilmington, Del. Through
mesne transfers acquired by Hoffman Cigar Co., Wilmington, Del.,
and re-transferred to Harry Kenyon, Inc., Wilmington, Del., on
June 19, 1939.

BIG PERFECTO:— 39,824 (Tobacco Merchants Association of the
. S). lor cigars. Registered July 31, 1916, by Selak & Hoff-
man. Inc., Wilmington, Del. Through mesne transfers acquired
by Hoffman Cigar Co., Wilmington, Del., and re-transferred to
Harry Kenyon, Inc., Wilmington, Del., on June 19, 1939.

VAN DER MEER:— 29,837 (United States Tobacco Journal). For
cigars, cigarettes, cheroots and tobacco. Registered February 4,
1905, by .\merican Litho. Co., New York, N. Y. Through mesne
transfers acquired by Hoffman Cigar Co., Wilmington, Del., and
re-transferred to Harry Kenyon, Inc., Wilmington, Del., on June

ESCANABA:— 14,061 (Tobacco W'orld). For cigars. Registered
June 6, 1903. by Selak & Hoffman. Inc., Wilmington Del. Through
mesne transfers acquired by Hoffman Cigar Co.. Wilmington Del
and re-transferred to Harry Kenyon, Inc., Wilmington, Del., on
June 19, 1939.

CAESER RODNEY:— 27,175 (United States Tobacco Journal)
lor cigars, cigarettes and tobacco. Registered May 7, 1903 by
American Litho. Co., New York, N. Y. Through mesne transfers
acquired by Hoffman Cigar Co., Wilmington, Del., and re-trans-
ferred to Harry Kenyon, Inc., Wilmington, Del., on June 19, 1939.

^^Y^-SPEAR:— 43,949 (Tobacco Merchants Association of the U
loVi '."''tS'^^''''' ^'R^rettes and cheroots. Registered October 14,
19^4, by Hoffman Cigar Co., Wilmington. Del. Transferred to
Harry Kenyon, Inc., W'ilmington, Del., on June 19, 1939.

DOUBLE SPEAR:— 30,589 (Tobacco W^orld). For cigars Rcgis-
\l'f iJecember 21, 1914. by Selak & Hoffman. Inc.. Wilmington,
I)el Through mesne transfers acquired by Hoffman Cigar Co
Wilmington, Del., and re-transferred to Harry Kenyon. Inc Wil-
mington. Del., on June 19. 1939.

TROPICAL CHARMS:— 31,550 (United States Patent Office) For
cigars. Registered January 18. 1927, by The J. Munch & Sons
Co.. Inc., Toledo, Ohio. Transferred to ConsoHdated Litho. Corp.,
Brooklyn, N. Y., and re-transferred to The House of Crane. In-
dianapolis, Ind., on July 31, 1939.

ROYAL (United States Tobacco Journal). For cigars Regis-
tered July23. 1883. by Steinccke & Kerr, New York. N. Y. Tralis-
ferred to Consolidated Litho. Corp.. Brooklyn, N. Y., and re-trans-
ferred to H. Fendrich, Inc., Evansville. Ind.. on August 22 1939

CLASSA DE SUPREMA:-39,878 (Tobacco Merchants Association
5oi^ k T^-^u For cigars, cigarettes, etc. Registered September 6.
1916 by Pasbach-Voice Litho. Co., New York. N. Y. Transferred
by Consolidated Litho. Corn.. Brooklyn. N. Y.. successors to the
'""'T'To/o^^"*''^"*''' *° "• ^^"<'»''^'^- T"c-, Eyansville. Ind.! in Au-

r4

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

JESSE A. BLOCH, Wheeling, W. Va T»re«iH*.nt

MAf'^f^OUrF^Iv ^HH i'^'n^' ""v^Vm-v ChainnanExecuViVecimmittee

MAJ. OtUKOE VV. HILL, New \ork, N. Y Vice-President

( EORGE H. HUMMELL, xNew York, N. Y. . ." iv ce-Pres den

^.••Fh^o^r^^'^LLIAMS, Winston-Sale^, N. C .. ViclKSnt

JILIUS LICHTENSTEIN. New York. N. Y V ce-Pres dent

ASA LEMLEIN, New York, N. Y. Treasurer

CHARLES DUSHKIND. New York. N. Y .Counserand Managing Director

Headquarters, 341 Madison Ave., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

IW^.W J- PINNEY, Worcester, Mass President

LlJMCND C. DEARSTYNE, Albany, N. Y V ce-President

J. RENZ EDWARDS, Kansas Cityi Kan . . '. Treasurer

JOSEPH KOU)DNY, 200 Fifth Ave., New York, N. Y ■.■.■.■.■.■.'.'.■.■.■.Secrltary

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

li^'f M rnp^^ir^^' c^V?^-^* F'fteenth .St., Brooklyn, N. Y President

R. L. McCORMICK 52 Me.n Ave Trenton, N. T First Vice-President

-At-'n^T/x'^VS.^'^lT^^.W?'* ^."'^ ^"•^•' ^^"^ ^°'-'*' N- Y. ..Executive Secretary
ALBERT FREEMAN, 25 West Broadway. New York, N. Y Treasurer

RETAIL TOBACCO DEALERS OF AMERICA, INC.

F.^.^.^. ^,4^^MiA' 233 Broadway, New York, N. Y President

DAWSON Vice-President

FLEISCHER ":::::::::::;:::::::::::;:::;:::::::::;:::::::;j;^fl^

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

ALVARO M. GARCIA President

THOMAS C. BREEN Treasnrer

SAMUEL BLUMBERG ::.:::::::::: l!! ! ! l! iCeneral Cotmsel

Executive Committee-AIvaro M. Garcia (Ex-oflkio). Thomas C. Breen, Harley W.

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

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion. Pa President

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

ARTHUR S. ZIEGLER. Red Lion. Pa. .....■.■.■. TrIasureJ

RU.SSELL S. STINE, Red Lion. Pa ..........■.■.■.■.■.■.■.■. .■.'.■.■.■.Secretary

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

JOSE p. PEREZ. Tampa. Fla President

Hmx^??vv''T''^'^^'^'^,^- '^^'"P^- ^'^ ■.•.■■.■.•.•.■.■.■.■.■.■.Viceipjesiden!

inii.N LEVY, Tampa, Fla TrMQnr^r

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

INDEPENDENT RETAIL TOBACCONISTS'
ASSOCIATION

BERNARD .SCHWARZ President

rpITt ^dV^J^JAxt ^'"-st Vice-President

foSFPTT rPO^M^M Second Vice-President

APTirT'ij vv^^t^^Jt^c Third Vice-President

ARTHUR W. TONES Financial Secretary

LOUTS GROSSMAN nnanciai secretary

BERNARD BERNSTEIN. 42 Broadway. New' York. 'n. ■¥■.■■. ".■.■.■.■.■.■.■.'.■.■.■. '.Secretary

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC.

JOSEPH FRIEDMAN President

TACK EDELSTEIN Treasurer

LEO RIEDERS, 3800 Broadwav. New York. N.' "y.^ ■.■.'.'.■.■. Secretary

TOHN MAUTE
CTJFFORD M.
MALCOLM L.

CIGAR

Internal Revenue Collections for August

Source of Revenue 1939

Cigars $ 1,197,525.43

Cigarette.s 49,715,362.98

-''nufT 621,279.76

Tobacco, chewing and smoking 5,375,535.54

Cigarette papers and tubes 70,170.47

Leaf dealer penalties 170.43

1938

$ 1.161.243.70

47,676,340.61

533,960.59

4,951,177.51

108,978.50

5.00

Summary of Internal Revenue Collections Year Ended
June 30, 1939, by Sourcet

Increase or

Source 1939 Decrease
Tobacco taxes:

Cigars (large) $12,792,550.49 +41,635.44

Cigars (small) 120,452.82 —10,541.44

Cigarettes (large) 19,267.94 —1,917 78

Cigarettes (small) 504.036,932.48 + 10,603,972.76

SnufT .... 6,932.019.20 + 253,165.53

Tobacco, chewing and smoking . . 54.757.043.76 + 774,945.53

Cigarette papers and tubes 1,493,785.80 -f 311.246.82

Leaf dealer penalties, etc 7,153.25 +4,731.35

Total $580,159,205.74 11,977,238.21

William J. Gould will represent the La Insular
Factory in the East. This appointment was made by
T. A. Peebles, a^^ent for this well-known Manila fac-
tory during- his visit to New York recently.

The Tobacco World

ESTABLISHED
1881

' ^1 !939

NOVEMBEI'"'^"'""--

1939

/>

PREPARE AHEAD FOR A
BIG CHRISTMAS SEASON

Now is the time for all smart manufac-
turers in the tobacco industry to put into
action that part of their holiday pro-
motion programs which call for extra
activity on the part of their wholesalers,
and to plant the seeds of their consumer
effort among the retailers.

Now is the time for all smart whole-
salers to get busy in stimulating retailers
to prepare for a banner holiday season.
Now is the time for all smart retailers
to lay their plans to be prepared with
adequate stocks for Christmas buying
that will be better than good this year,
because of the improvement in business
and the optimistic attitude of Americans
generally.

A MILDER
COOLER SMOKE

Veeps the smolder

happy

Copyright 1939, LiGCUTT & MvtRS TOBACCO Co.

HoBAET B. Hankins — Editor

Business Manager — B. S. Phillips

THE TOBACCO WORLD

Vol. 59

NOVEMBER, 1939

No. 11

HEY picked Denipsey up from the floor and
shoved him back in the ring with Firpo, and in
the next round Dempsey came from behind to
win by a knockout. Eastman made 472 experi-
ments before he discovered an emulsion that would
develop a film. Edison worked thirteen months to find
a filament that would work in a light bulb. The first
five stores Woolworth established, failed. Courage is
the thing that makes a man hang on and on when things
seem hopeless; something that makes a salesman re-
member the needs of his prospects even when they say
**No" and makes him stay with them until they are
protected ; something that makes a man smile when he
wants to frown, and try again when he has failed. This
is the kind of courage that never yet has met defeat !

VERY real salesman gives more thought to the
business he loses than to the sales he makes.
They talk more about sales they lost than
about sales they made. Their concern about
lost customers stamps them as real salesinen. Only
the blowhard harps on his successes exclusively. Suc-
cessful salesmen are thinkers. They do not always
know why certain sales were lost, but mostly they do.
As long "as a salesman worries about lost sales he is
all right. He will continue to improve his sales pres-
entations and bring up new reserves against competi-
tion. Pride doesn't go before a fall in salesmanship,
despite the old adage. It is that very pride in his own
personal achievement that spurs tlie real salesman on
to more fight. It is not the prospect worked on and
lost that concerns the real sales manager. It's the
prospect seen but not worked on intelligently. It's the
suspect sometimes not seen at all. Put those two
groups together and you have a substantial number of
potential customers slipping through the fingers of a
salesman in almost any line, tobacco and its products
included.

HAT is a salesman, anyway? What must he
be! The answer is given in Coverage. Must
be a man of vision and ambition, an after-
dinner speaker, before and after dinner guz-
zler, night owl— work all day, drive all night, and ap-
pear fresh the next day. Learn to sleep on the floor
and eat two meals a day to economize on traveling
expenses so he can entertain his friends in the next
town. Must be able to entertain custonicrs' wives,
sweeties and pet stenographers, without becoming too
amorous. Inhale dust, drive through snow twelve feet
deep at 10 below and work all sunnner without per-
spiring or acquiring B O. ISfust be a man's man, a
ladies' man, a model husband, a fatherly father, a
devoted son-in-law, a good provider.

UST be a plutocrat. Democrat, Republican,
New Dealer, old dealer and fast dealer — a
technician, electrician, politician, poly tech-
nician, machinist, mechanic, and ambidex-
trous. Must be sales promotion expert, create a de-
mand for obsolete merchandise, be a good credit
manager, correspondent, attend all jobber clinics,
dealer meetings, labor union meetings, tournaments,
funerals and births — visit customers in hospitals and
jails once a month, contact all accounts every six
weeks, and in spare time look for new business, collect
delinquent accounts, do missionary work and attend
factory sales conferences. Must have a car or a good
thumb, attractive home or lodge (a tent will do), belong
to all clubs and pay all expenses at home and on road,
for 5 per cent, commission payable when the factory
floats a loan.

UST agree that price chiseling and bad debts
be deducted from monthly commissions, plus 2
per cent, excise tax, 1 per cent, old age pension,
and 2 per cent: *'lost sales" tax. All back
orders will be deducted from total sales volume, plus
freight allowed, parcel post, telegrams and seltzer
water. Mail order business excluded. Salesmen should
remit to the factory before the tenth, so they in turn
can mail their jobbers a check for the difference be-
tween debits and credits for the month. Must be an
expert driver, talker, dancer, traveler, bridge player,
poker hound, toreador, golf player, diplomat, financier,
capitalist and philanthropist — an authority on palm-
istry, chemistry, archaeology, psycholog>% physiology,
meteorology, criminology — dogs, cats, horses house
trailers, and the Einstein theory.

HAT'S the kind of ribbing given nowadays to
the theorists on salesmanship. A professional
salesman puts it this way : There are two ele-
ments that are necessary in any sale. First, a
proper and attentive audience, and, second, enthusiasm
placed in the right channel and directed in such a way
as to pertain to the prospect's business. I endeavor to
do this without giving the prospect the impression that
I am driving too hard. I do my best to study my busi-
ness. I review the sale, or the loss of it, afterwards.
I make adjustments and changes of pace, altered ap-
proaches, and methods of attacking and closing ; and I
always come back to the conclusion that the surest
method is smooth, easy, unruffled, positive assurance,
and presentation of what I know is for the best interest
of the prospect. If I break a tough one, I arn pleased
inwardly, not outwardly. Ego in a salesman is an out-
ward sign of an inner lack of knowledge.

The TOBACCO WORLD (est. 1881) is published by Tobacco World Corporation; Hobart B. Hankins. President and Treasurer; B S. Ph.ll.ps. Vice-Prestdent. John Cleary.

S^reTaryi^ceaS Chestnut Street. Philadelphia. Pa. Issued monthly. Subscriptions, available only to those engaged '" ^.^'^ ;°''»"° -'^"f f °' ^^^^^^^

IS cents a copy; foreign. $1.75 a year. Entered as second-cla„ mail matter. December 22, 1909. at the Post Office. Philadelphia, Pa., under the Act of March 3. 1879.

Slight Gains Registered in September

U. S. Cigars Up 4.27% in 9 Months

Cigars Up a Fraction of One Per Cent;
Cigarettes Advance Only 0,53 Per Cent,
Snuff and Little Cigars Show Decline

Increases Registered by Cigarettes,

Little Cigars and Snuff to Date;

Cigarette Withdrawals Gained 4Alfo

EPTEMBER was an otY month in the tobacco
industry. The increases in cigars, cigarettes
and manufactured tobacco were slight; the
decreases in little cigars and snuff were sub-
stantial. Those were the high lights of the month's
activities, as recorded in the Supplement to the To-
bacco Barometer of the Tobacco Merchants Associa-
tion of the United States.

Total U. S. cigars withdrawn for consumption in
the month were 486,864,568, as compared with 486,-
481,938, an increase of 382,630, or 0.08 per cent. The
Philippine Islands product registered a total of
22,054,472, as compared with 18,377,323, an increase of
3,677,149, or 20.01 per cent. Puerto Rico withdrawals
totaled 138,150, as compared with 143,300, a decline of
5150, or 3.59 per cent. So that the grand total
amounted to 509,157,190, as compared with 505,002,561,
an increase of 4,054,069, or 0.80 per cent. P. I. Cigars
thus helped to save the month.

As usual, the great bulk of the withdrawals came
in Class A. U. S. cigars totaled 431,980,525, as com-
pared with 430,011,635, an advance of 1,968,890, or
0.46 per cent. This was increased to 1.26 per cent, for
the class bv a bigger percentage of gain from P. I.,
that total of 21,979,080 comparing with 18,268,920, and
representing a gain of 3,710,160, or 20.31 per cent.
Puerto Rico was down from 102,050 to 53,000.

Product September, 1939

Cigars :

United States 431.980.525 +

Philippine Islands ... 21,979.080 +

Puerto Rico 53,000 —

Total 454,012,605 +

Class B—

United States 3,821.930 —

Philippine Islands ... 31.857 -f

Puerto Rico 44.500 +

Total 3,898,287 —

United States 47,466.354 —

Philippine Islands ... 11.954 —

Puerto Rico 40.650 +

Total 47,518,958 —

Class D—

United States 3,158.119 —

Philippine Islands . . . 22,650 —

Puerto Rico

Total 3.180,769 —

Class E —

United States 437.640 +

Philippine Islands . . . 8.931 -f

Puerto Rico

Total 446,571 +

Increase or Decrease
Quantity Per Cent.

1.968,890

3,710,160

49,050

0.46
20.31

5,630,000

1.26

424,117
30.254
35,500

9.W

358,363

8.42

892.638

12,346

8,^)0

1.85

896,584

1.85

395.434
54,850

11.13

450.284

12.40

125.929
3.931

40.40

129,860

41,00

Class B in the U. S. totaled 3,821,930, as compared
with 4,246,047, a decrease of 424,117, or 9.99 per cent.
This, how^ever, was reduced to 8.42 per cent, by gains
in both P. I. and P. R. products in this class. P. I.
withdrawals totaled 31,857, as compared with 1603, and
P. R. withdrawals came to 40,650, as against 32,250.

Class C in the U. S. totaled 47,466,354, as com-
pared with 48,358,992, a drop of 892,638, or 1.85 per
cent. P. I. was down also, the total of 11,954 compar-
ing with 24,300, a difference of 12,346 on the wrong side
of the ledger.

Class D in the IT. S. dropped from 3,553,553 to
3,158,119, a decrease of 395,434, or 11.13 per cent. P. I.
plummeted from 77,500 to 22,650.

Class E in the U. S. and P. I. registered gains,
although the total was small in each case. The U. S.
total was 437,640, as compared with 311,711, a gain of
125,929, or 40.40 per cent. P. I. cigars in this class
rose from 5000 to 8931. ^

The U. S. cigarette total was 14,789,904,810, as
compared with 14,710,977,947, an increase of 78,926,-
863, or 0.54 per cent. This was reduced to 0.53 per
cent, by P. I. and P. R. losses. Large cigarettes
dropped in U. S. but gained in P. R. for a net increase
of 2.95 per cent.

Following are the comparative figures:

Product September, 1939
Total All Classes:

United States 486,864.568 +

PhiUppinc Islands ... 22,054.472 +

Puerto Rico 138,150 —

Grand Total 509,057.190 +

Little Cigars:

United States 14,094.720 —

Philippine Islands ...

Puerto Rico

Total 14,094,720 —

Cigarettes :

United States 14,789,904,810 +

Phihppine Islands . . . 192,900 —

Puerto Rico 9,300 —

Total 14.790,107,010 +

Large Cigarettes:

United States 220,440 —

Philippine Islands ...

Puerto Rico 35,600 +

Total 256,040 +

SnufT (lbs.):

All United States ... 2,949,488 —

Tobacco (Chewing and
Smoking) lbs.:

Umted States ....... 27,411,852 4-

Philippine Islands ...

Total 27,411,852 +

Increase or Decrease
Quantity Per Cent.

382,630

3,677,149

5,150

0.08

20.01

3.59

4,054,629

0.80

3,596,013

20.33

• • • •

• • ■ •

3,596,013

20.33

78,926,863
822,070
508.700

0.54

• • ■ ■

• • • •

77,596,093

0.53

8,260
15,666

3.61

• • • •

■ ■ k *

7,340

2.95

571,000

16.22

355,657

1.31

» • • «

355,657

1.31

N spite of a business that was far from gratify-
ing in September, withdrawals for consump-
tion for the first nine months of this year show
far from discouraging improvement over the
corresponding period of 1938, it is revealed by the
latest Supplement to the Tobacco Barometer of the
Tobacco Merchants Association of the United States.
Gains are registered for cigars, little cigars, cigarettes
and snuff; losses are recorded for large cigarettes and
tobacco manufactured for chewing and smoking.

U. S. cigars totaled 3,923,862,242, as compared
with 3,763,240,069, an increase of 160,622,173, or 4.27
per cent. P. I. cigars also showed a gain, the total of
148,497,603 comparing with 142,775,729, a rise of
5,721,874, or 4.01 per cent. P. R. cigars, on the other
hand, declined from 1,206,500 to 1,182,240, a difference
of 24,260, or 2.01 per cent. Thus, the grand total was
4,073,542,085, as compared with 3,907,222,298, a gain
of 166,319,787, or 4.26 per cent.

Class A cigars in the U. S. totaled 3,547,335,645, as
compared with 3,363,141,170, an increase of 184,194,475,
or 5.48 per cent. P. I. withdrawals totaled 147,965,955,
as compared with 142,319,690, an increase of 5,646,265,
or 3.97 per cent. P. R. withdrawals totaled 805,990, as
compared with 700,550, an increase of 105,440. So the
total gain in this class was 189,946,180.

1st 9 Mos.

Product CaL Yr. 1939
Cigars:
Class A —

United States 3,547,335,645

Philippine Islands ... 147,965,955

Puerto Rico 805,990

Increase or Decrease
Quantity Per Cent.

+

184,194,475

5,646,265

105,440

5.48
3.97

Total 3,696,107,590 +

Class B —

United States

Philippine Islands
Puerto Rico . . . . ,

29,019,459 —

54,937 -h

167,700 -h

Total

29,242,096 —

Class C"*— *

United States 322,532,104

Philippine Islands ... 206.058

Puerto Rico 207,050

Total 322,945,212 —

Class D —

United States

Philippine Islands
Puerto Rico

22,677,987 —
247,901 -h
1,500

Total

22,927,388 —

Class E —

United States

Philippine Islands
Puerto Rico

2,297,047 +
22,752 +

Total

2,319,799 +

189,946,180

5.42

7,666,108

25,034

102,200

20.90

7,538,874

20.50

14,772,658

6,028

231,900

4.38

15,010,586

4.44

1,390,815
47,348

5.78

• ■ • •

• • • •

1,343,467

5.54

257,279
9,255

12.61

■ • « •

266,534

12.98

Class B in the U. S. totaled 29,019,459, as com-
pared with 36,685,567, a decline of 7,666,108, or 20.90
per cent. This U. S. loss, however, was reduced by
P. I. and P. R. gains. P. I. withdrawals went up from
29,903 to 54,937, an increase of 25,034, and P. R. with-
drawals soared from 65,500 to 167,700.

Class C in the U. S. totaled 322,352,104, as com-
pared with 337,304,762, a decrease of 14,772,658, or
4.38 per cent. P. I. withdrawals dropped from 212,086
to 206,058, and P. R. withdrawals declined from
438,950 to 207,050.

Class D in the U. S. totaled 22,677,987, as com-
pared with 24,068,802, a loss of 1,390,815, or 5.78 per
cent. The net loss in this class, however, was slightly
lower (5.54 per cent.) through the rise of P. I. with-
drawals from 200,553 to 247,901, and the P. R. score
standing even at 1500.

Class E in the U. S. totaled 2,297,047, as compared
with 2,039,768, an increase of 257,279, or 12.61 per cent.
This rate of increase was heightened to 12.98 per cent,
by the advance of P. I. withdrawals from 13,497 to
22 752.

cigarettes in the U. S. totaled 129,818,018,080, as-
compared with 124,332,519,066, an increase of 5,485,-
499,014, or 4.41 per cent. P. I. and P. R. cigarettes
both gained slightly.

Following are the comparative figures :

1st 9 Mos. Increase or Decrease

Product CaL Yr. 1939 Quantity Per Cent.

Total All Classes:

United States 3,923,862.242 + 160.622,173 4.27

Philippine Islands ... 148,497.603 -^ 5.721,874 4.01

Puerto Rico 1,182,240 — 24,260 2.01

Grand Total 4,073,542,085 + 166,319,787 4.26

Little Cigars:

United States 122,799,667 4- 8,134,555 7.09

Philippine Islands ... ....

Puerto Rico — .

Total 122,799,667 + 8,134,555 7.09

Cigarettes:

United States 129.818,018,080 + 5,485,499,014 4.41

Philippine Islands ... 1,086,167 — 389,396

Puerto Rico 4,059,530 + 800,450

Total 129.823,103.777 + 5,485,910,068 4.41

Large Cigarettes:

United States 1,844.586 — 2,784 0.15

Philippine Islands . . . 121 — 40 ....

Puerto Rico 160..300 — 58,550 26.75

Total 2,005,007 — 61,374 2.97

Snuff (lbs.):

All United States ... 28,544,965 4- 930,650 3.37

Tobacco (Chewing and
Smoking) lbs.:

United States 229,518,637 — 191.931 0.08

Philippine Islands ... 564 -f- 517 ....

Total 229,519,201 — 191,414 0.08

The Tobacco Worid

November, igjg

Tobacco Meets the Impact of War

An Address to the Carolina Growers

By Secretary Henry A. Wallace

OBACCO is one of the first major crops to
feel unfavorably the impact of war. Here in
peaceful Carolina, more than 3000 miles away
from the battlefields of Europe, you have been

rudely disturbed in your pursuit of growing and sell-
ing tobacco. From across the Atlantic the war has
stretched out its long arm to interfere with your peace-
ful activity, and to dry up your connnerce. AVith your
market closed before even half your crop is sold, you
are face to face with grim reality. You know from
first-hand experience something about the dislocations
which war can bring.

When I speak of dislocations I know full well they
are not confined to farm families but touch the lives
and affairs of the entire business connnunity. Most of
you here are growers of tobacco. But some of you
are warehousemen or dealers or merchants or laborers
or housewives. For almost all of you, war has been
translated into a devastating economic force which
threatens your income and which may force you to
change your ways of doing business. You are among
the first rural Americans to be brought quickly and
sharply into the focus of war.

Here in the tobacco country these changes which
have been forced upon agriculture have been partly
hidden by the fact that you have a crop for which the
demand has increased rapidly since the last war. Un-
like cotton, wheat and pork, for which the curtailment
in foreign markets after the war outweighed the in-
crease in the domestic market, world consumption of
fiue-cured tobacco has increased. Prices have held up
above 20 cents a pound except for five or six years
centering around the depression year of 1931.

I do not wish to convey a false impression as to
the measure of prosperity which tobacco growers have
enjoyed. Historically, the income of tobacco farmers
has been low — too low. Tobacco is an expensive crop
to raise, requiring a great deal of labor and nmch skill.
Even in years of good i)rices the families growing to-
bacco had relatively small income. The depression
laid a heavy hand upon the toabcco-grownng comnmni-
ties. Prices began slipping in 1928 and '29, dropped
sharply to 12 cents in 1930, and nose-dived to 8 cents
in 1931. They remained low in 1932.

Then, with the combined effect of the Triple A
farm program and general recovery, the price jumped
up in 1933 — and in every year since that time, up to
this season, the price has been above 20 cents a pound.
In comparison with the depression period, farm in-
come of the flue-cured tobacco growers has shown more
improvement than that of any other large group of
farm people in the United States.

I recall how the growers responded quickly to the
plan for production adjustment in 1933. Whether the
reason for their success was the relatively limited area
in which the crop was grown, or the nature of the mar-
ket, or the co-operative attitude of growers and the
trade, there is no question that production adjustment
of flue-cured tobacco from the very beginning oper-
ated to maintain both price and income. AVe have no
finer example of effective use of these measures than
has been given us in the flue-cured belt.

Perhaps it w^as this very success which led to sus-
pension of the flue-cured tobacco marketing quotas last
year. It was a hard decision for growers to make,
because they had just experienced one of the most
satisfactory years in all tobacco history. It was dem-
onstrated by the vote in the referendum that a ma-
jority of the farmers felt they would be safer with
quotas than without. But a substantial minority
wanted to get along without them, and since the quotas
did not have the support of the necessary two-thirds
majority, they were dropped. This was a democratic
decision, by which all of us have been willing to abide.

We now know the results of this decision. The
acreage of flue-cured tobacco increased around 30 per
cent, and 1939 production hit an all-time high of more
than one billion pounds. Prices reacted accordingly,
and during the few weeks in which the market was
open the price averaged about 14 cents a pound. Dur-
ing the preceding five years from 1934 to 1938, prices
had averaged about 23 cents a pound. The change
to this year's situation is abrupt. Even had there been
no war, there would have been a 200,000,000-pound sur-
plus. The prospect of this surplus had already caused
a drastic decline in prices. To add to these troubles
war has broken out in Europe, and the markets in the
flue-cured belt are closed.

I do not need to tell this audience why the mar-
kets closed. I do not need to tell how the British Gov-
ernment is in the midst of war, and with a normal two
years' supply of tobacco on hand, has decided it must
withdraw temporarily at least from the American to-
bacco market. I do not need to tell how warehouse-
men, buyers and tobacco companies closed the markets
in order to keep the price from dropping disastrously,
and to give an opportunity for growers and trade and
government to try to work out some means of selling
the remainder of the crop without terrific losses. And
that is where we are today.

A big crop and a small market — I know what that
means to every one here. I know the fear that grips
us all at times like this: the fear that there won't be
money to live on this winter; the fear of having to beg
for loans at the bank at a time when there is no chance
to repay the old note; the fear that credit will be de-
nied, that the farm or the store may be lost, that the
clothes planned for the family this fall can't be bought,
that the children can't be sent off to school this year,
that the months ahead and the years ahead will bring
problems too difficult to be solved. Yes, war, for you,
because of its effect on your tobacco market, is a very
personal thing.

Destructive as w^ar is, it also is a unifying force
within nations or within groups. All in this audience
have been levelled down together by tliis slap the war
is taking at the tobacco market. All are bound to-
gether by this menace of a common danger. No sin-
gle individual can cope with it. Unity of action is
essential.

In the meantime every effort is being made to re-
open the British market which normally takes more

\.

^^\ . 'k

"Have you ever noticed
that Camels burn
longer and give you
more smoking?"

ASKS VAN CAMPEN HEILNER
Famous Game and Fishing Authority

^.

■ j.

Whatever price you pay per
pack ,fs .^ '« — m-

5Wr than the average of, he 15
o,herof,helar«es,..ellin«bra„d.

CAMELS g.ve a smoking^/,,
equal to »i"-*

EXTRA SMOKES
PER PACK!

M ^

C^Mff.

j.'i

iv V > '^

.: ~LJ.

, - ' \

Above, "VAN" waiting in the duck blinds for the "zero hour." Explorer, sportsman,

scientist, conservationist, author of the authoritative, new "A Book on Duck Shooting,"

Heilner knows the waterfowl flyways from California to Maine, Alaska to Mexico^ amd

those of Europe too. "VAN" has been a Camel smoker for 18 years.

YOU can tell a lot about a cigarette
by whether it burns fast or slowly.
Camel cigarettes are noted for their
long burning. In fact, they burned
longer, slower than any other brand
tested, in recent scientific studies. Van
Campen Heilner, the famous American
authority on wild game, points out an
interesting angle to this. "Camels give
more smoking because those choice to-
baccos burn so slowly," he says. "And
I think the way they burn is a very

good way to judge the quality of ciga-
rettes too. I notice this about Camels
—I can smoke them steadily and they
still taste smooth and cool, and my
mouth feels fresh— and there's no throat
irritation. Camels are mild, flavor>^
They give more pleasure per puff— and
more puffs per pack." Turn to Camels.
Get extra smoking per pack-topped
off with the delicate tas^ of choice
quality tobaccos. For contentment-
smoke Camelsl

Cigarette, were compared recently
• . . ..xteen of the UrKeM-sell.ng
brands... under the ,earchi„«re.t.
of .mparfal laboratory scientwt..

f 1, '"«* *«'« announced a.
tollowc

1 ^^^^'}'^ -"e found to con-
1 5 other of the large.t.«ell,ng hrand,.
fc* tR THAN ANY OTHitd

ER THAN THE AVERAHF
TIME OF THE 15 OTHER Sf

BRANDS' By hurning25^, slower

on the average. Camel, give. mok-
er. the equivalent of S EXTRA

SMOKES PER PACK!

?i uirT*'A *^'"* '""' CAMELS
y HELD THEIR ASH FAR
LONGER than the average tile
for all the other brand..

Don't deny yourself the plea.ure of
•rnokmg Cameli, the quality ciga-
retre rvrry .moker can afford.

PENNY FOR PENNY

YOUR BEST

CIGARETTE

BUY I

Cop,ri.ht 19a,. R^. R^^^ ^

WlnMon-.Saleni. N. C.

MORE PLEASURE PER PUFF . . . MORE PUFFS PER PACK!

CAMELS Long-Burning Costlier Tobaccos

{Continued on Page 12)

The Tobacco World

November, igsg

Cigarette Production Turns Upward

By C. PALMER PARKER

President of Axton-Fisher Tobacco Company

HK a.iigrc.i'ati' cigarotte pi'oduetioii, after virtu-
ally standing still in 1938 as compared with
1!).'>7, is tinning upward again. To those thou-
sands of men and women engaged in the manu-
facturing, distril)uting and retailing of tobacco prod-
ucts, their friends, and the public, it is lieartening in
these times of economic insecurity to know that the to-
bacco iiuhistiy, although bui'deiied by taxes, has in-
variably moved forward consistently despite recessions
and depressions. It has afforded an unfailing source
of livelihood to all connected with it.

At the outset, it should ])e noted that the produc-
tion and sale of cigarettes overshadow by a wide mar-
gin any other phases of the industry. This will prob-
ably continue to hold true, since the cigarette furnishes
the easiest way of using tobacco. National cigarette
production in 1937, exhibiting normal growth, exceeded

1936 by 6 per cent., roughly. However, production in
1938 was less than 1 per cent, ahead of 1937, which in-
dicates the industry practically marked time last year.

It was the first year since 1932 that production for
one year was not better than a previous one. Such a
condition may be attributed in a measure to the slack
in general business which existed from October, 1937,
through the first half of 1938. It was encouraging to
note, however, the unmistakable improvement in indus-
trial production during the latter half of 1938, which
has reflected in the greater demand for cigarettes in
the first half of this year.

It may appear since the public consumed no more
cigarettes in 1938 as compared with 1937, that the use
of all tobacco products declined. Such w^as not the case.
The smoker seemingly switched from the cigarette to
the pipe, or else rolled his own. The per cent, gain in

1937 over 1936 of 6 per cent, for cigarettes, but lost in

1938 over 1937 was picked up by smoking tobaccos.
This statement is sustained by the fact that pipe and
roll-your-own tobaccos finished 6 per cent, ahead in
1938 as comjiared with 1937.

Here in these two classifications, cigarette and pipe
tobaccos, may be found criteria of l)usiness conditions
in the nation as a whole. In 1932 (compared with 1931)
for the first time in a dozen years, cigarette production
dropped off. Smoking tobaccos increased. In 1920, an-
other business slump occurred, and cigarette demand
toppled again sharply from the peak of 1919.

Snioking and cigarette trends have been heading in
opposite directions for many years. Cigarette produc-
tion rose from a paltry 8,000,000,000 in 1910 to the in-
credible total of 163,000,000,000 in 1938— gaining 1900
per cent, in less than three decades. Few products have
experienced such popularity. Smoking tobacco has
dropped with depressing regularity since 1925. Other
than the occasional spurts already mentioned, there is
only slight hope for complete resuscitation of the prod-
uct. Scrap, plug, and twist have also felt the consumer
preference for cigarettes. SnufT sales are and have
been static, and they have been the least affected by the
switch in tobacco consumption.

Our company has created considerable demand for
our products abroad. Shipments are made from the
plant to more than fifty foreign countries, and sales are

increasing steadily. This means the development of ex-
port trade could absorb a portion of any fall that might
occur in domestic consumption which in the final
analysis would not change our position locally with re-
gard to employment and wages.

The introduction and success of the ten cent cigar-
ette in the market has increased employment. These
brands account for less than one-third of the total pro-
duction, but they have stimulated the tobacco activities
all along the line from the selling of the plant to the
finished product. Their progress has not been made
at the expense of other brands already on the market.

Moreover, any thought that the ten cent cigarette
has lowered manufacturing standards and depressed
tobacco prices paid to the farmers is ridiculously falla-
cious. Competition, essential for the welfare of the con-
sumer and grower, is keener today than ever before.

Although the increase is not large for the five
months of 1939, cigarette production figures show a
greater gain for this period as compared with 1938 than
the grand total for 1938 exceeded 1937. Besides, May
totals topped May of last year by 7 per cent. Smoking
tobaccos for the first quarter of 1939 still retain a slight
lead (less than 2 per cent.) over the corresponding pe-
riod of last vear.

If the current trend in cigarette production is in-
dicative in the slightest measure of general business
activity, it is our opinion that a gradual improvement
in business can be expected for the remainder of 1939.
An overnight return to the kind of prosperity existing
prior to September, 1929, is not anticipated, and cer-
tainly not w^anted. Recovery may seem slow to many,
but in the end it is the soundness of any recovery that
counts, and not the speed with which it has been
effected.

LORILLARD SHIFTS PROGRAM

On November 25th the P. Lorillard Companv will
shift ** Melody and Madness," heard in behalf of Old
Gold cigarettes, to eighty-nine stations of the NBC-Red
Network on Saturdays from 8 to 8 :30 P. M., E. S. T.
A repeat show will be presented for West Coast lis-
teners at midnight.

The program is now heard on Tuesdavs at 9 P. M.,
E. S. T., over 103 stations of the NBC-Blue Network.

P. Lorillard also sponsors ** Sensations and
Swing" in behalf of Sensation cigarettes and Muriel
cigars on Mondays at 7:30 P. M., E. S. T., over the
NBC-Red Network. The number of stations on the
latter network was increased from sixty to sixty-seven
on September 25th.

BAYUK REPORTS PROFITS

Bayuk Cigars Incorporated and Wholly Owned
Subsidiaries report net earnings for nine months end-
ing September 30th of $1,296,082.54, equal, after pre-
ferred dividends, to $3.12 per share on common stock
against net earnings of $908,038.01 equal, after pre-
ferred dividends, to $2.08 per share on common stock
for same period of 1938. This is exclusive of a loss for
the 1939 period by controlled company (not consoli-
dated) amounting to $70,710.70.

The Tobacco World

' Here's what Larry Moore recently
told a visitor to Tobaccoland :
VISITOR: "Why have crops
in recent years been so good?"
MR. MOORE: "Because farm-
ers have adopted new methods...
developed by the U. S. Gov't!"
VISITOR: "Do Luckies get a
good grade of these improved
crops.'"

MR. M.: "Yes, sir— Luckies al-
ways ^/V choose the choicer
giades. That's what started me
smoking them 21 years agol"

VISITOR: 'Do other tobacco
experts prefer Luckies, too.**"
MR. M.: "Among those I know,
Luckies are the 2 to 1 favorite!"
VISITOR: "Looks to me as if
I'd better try Luckies!"

Yes, the tobacco in Luckies is
better than ever. And Luckies
are easy on the throat because
of the famous "Toasting" proc-
ess. Try Luckies for one week.
Then you'll know why... WITH
MEN WHO KNOW TOBACCO
BEST- IT'S LUCKIES 2 TO 1.

Easy OH Your Thtfi^

«^^

November, 1939

POPULAR LEADERS

By P. Lorillard Co

BEECH-NUT

^'UNION

LEADER

OLD GOLD

Double Mellow

Cigarettes

LILLIAN

2

for
5*

ROCKY
FORD

MURIEL

Senators

5i

VAN

BIBBER
5 for 10*

SENSATION
20forl0»

BETWEEN THE ACTS

1 » i pkg. of ten

TOBACCO PRODUCTION UNCHANGED

HE total estimate of production of 1,654,174,000
pounds for all types of tobacco combined as
of October 1 remained practically unchanged
from a month ago. This crop promises to be
the largest on record, exceeding slightly the previous
record crop of 1930 and being about 20 per cent, larger
than the 1938 crop of 1,378,534,000 pounds and 22 per
cent, greater than the 10-year (1928-37) average pro-
duction of 1,360,400,000 pounds.

The indicated yield of 917.7 pounds is also the
highest on record, comparing with the previous high
yield of 902.6 pounds in 1935 and the 10-year (1928-37)
average yield of 803.2 pounds.

The estimated production of flue-cured tobacco has
not changed greatly since the initial estimate in Julv
and is now indicated at 1,012,240,000 pounds compared
with the 1938 crop of 785,731,000 pounds and the 10-
year average production of 704,802,0(M) pounds. If
present prospects materialize the 1939 flue-cured crop
will be the largest on record, exceeding by about 17 per
cent, the previous record high production of 1937. The
present estimated yield of 917 pounds per acre for flue-
cured tobacco is exceeded only by the record viekl of
928 pounds in 1935. Most of the flue-cured belt ex-
perienced favorable weather conditions during the
growing season and harvesting was hampered only by
the shortage of curing facilities which prevented some
producers from handling the crop as rapidly as the leaf
matured.

The production of fire-cured tobacco is now esti-
mated at 94,726,000 pounds compared with the 1938
crop of 84,324,000 pounds, which was the lowest on rec-

ord, and tlie 10-year average production of 140,022,000
pounds. Dry, hot weather during September over most
of the Black Patch hurt the fired types, resulting in
lowered yields especially for type 22 in Kentucky.

The October 1 estimated production for Burley to-
bacco of 354,217,000 pounds is about 5 per cent, larger
llian the 1938 crop and approximately 12 per cent,
above the 10-year average production.

After a rather poor start earlier in the season the
condition of Ataryland type tobacco improved steadily
and the production is now estimated at 29,562,000
pounds compared with 28,804,000 pounds a month ago
and the 1938 crop 29,250,000 pounds. The 10-year
average production is 25,217,000 pounds.

The indicated production of 36,385,000 jjounds of
dark air-cured tobacco is down somewhat from the 37,-
3S3,(HM) pounds estimated a month ago, but is mate-
rially al)ove the rather small crop in 1938 of 32,789,000
pounds. Lack of moisture and unseasonably hot
weather in the One-Sucker areas of Kentucky and
Tennessee lowered the prospective yield of that type
and largel}^ accounts for the decrease in the estimated
production for total dark air-cured tobacco.

There was no significant change from last month in
the estimated production of the cigar tvpes of tobacco.
Tlie October 1 estimated production is 127,044,000
pounds compared with the 1938 crop of 107,651,000
pounds and the 10-year average production of 129,-
533,000 pounds. The present indicated production by
classes is as follows : filler, 53,030,000 pounds ; binder
62,498,000 pounds ; and wrapper, 11,516,000 pounds.

Unofficial returns from the flue-cured tobacco ref-
erendum held Octol)er 5, show that 89.8 per cent, of
the growers voting favored marketing quotas for the
1940 flue-cured tobacco crop, the Agricultural Adjust-
ment Administration announced today. Triple-A offi-
cials estimate that over 90 per cent, of the returns
have been reported.

Out of a total of more than 300,000 farmers eligi-
])le to vote, indications are that final tabulations will
total nearly 250,000 votes. This compares with 233,-
395 votes in the referendum on quotas for the 1939
crop.

RTDA HOLDS CONFERENCE

Continuing the policy to meet frequently with the
directors and vice-presidents of the Retail Tobacco
Dealers Association, a mid-western conference was
held at the Palmer House, Chicago, 111., on October
16th and 17th. Many important association activities
were seriously considered and discussed and much ben-
efit derived from the several sessions. The following
were present :

Eric ('alamia, president of R. T. D. A., Inc., New
York; Joseph Kolodnv, executive secretary of N. A.
T. D., Inc., New York ; Clifford M. Dawson, Buffalo ;
Louis J. Eidnes, Chicago; Malcolm L. Fleischer, exec-
utive secretary R. T. D. A., Inc., New York; Bernard
Garfinkel, Chicago; William Hickey, Davenport, Iowa;
Joseph Loeser, Chicago ; John Maiite, Chicago ; Robert
Riemenschneider, Chicago, and H. Esmond Howley,
Boston, Mass.

Mr. Calamia, accompanying Mr. Kolodny, left
Chicago late Tuesday, October 17th, and attended a
meeting of tobacco jobbers and retailers in Cleveland,
Ohio, that evening.

The Tobacco World

Make your
selection

America's

Number One

Christmas Gift

EL pmjao

Jorreal enjoyment

G. H. P. Cigar Co., Inc., Phlla.,

PENNSYLVANIA HOLDS LEAD IN CIGAR
MANUFACTURING

OR many years the national leader in the man-
ufacture of cigars, Pennsylvania is today
firmly entrenched in its leadership with an
output valued at one-third of the entire United
States production. The annual value of Pennsylvania
cigars exceeds $60,000,000, and the industry gives em-
ployment to 20,000 persons. Philadelphia alone pro-
duces a greater annual value of product than any sin-
gle state, although that city's total production value is
only slightlv more than half of Pennsylvania as a
whole. In 1937, fifty-eight Philadelphia factories, em-
ploying 8575 persons, turned out cigars valued at
$32,297,200.

Following Philadelphia in rank are York and Lu-
zerne Counties. Although the total cigar production
of these two counties is ahnost equal (in 1937, $7,562,-
200 for York; $7,240,700 for Luzerne), the pattern of
manufacture in each is decidedly different. York
County has about seventy-five cigar factories situated
in a great many boroughs and townships throughout
the southern reaches of the county. Luzerne County
has only two factories. York County factories employ
more than 4000 persons ; Luzerne County about 2000.
The difference in the number of factories and em-
ployees is accounted for by the fact that York County
has, in addition to several large factories, a great many
small plants engaged in the manufacture of hand-made
cigars, while Luzerne County has the second largest
factory in the State producing machine-made cigars
exclusively.

November, I939

With nearlv two-thirds of all the cigar filler used
in the United States coming from the tobacco fields of
Lancaster County, Pennsylvania's cigar industry en-
joys not only theniany advantages to industry otTered
by the State, such asgood kK-ation, large supi)lies of
labor and superior transportation facilities, but also
the added advantage of proximity to the industry's
source of supply. Pennsylvanians can well look for-
ward to their State's continued leadership in this im-
portant industry.

CIGARETTES AND WAR

Cigarette companies are looking across the seas
nowadays as they see history repeating itself. Ciga-
rettes are an important item in war times and one of
the largest single orders in histoiy was ])laced with
Lorillard in July, 1915, when the allies })ouglit 400,-
000,000 cigarettes for their troops in Euro])e.

In order to complete the order under the terms of
the contract it was necessary to turn out 10,000,000
cigarettes a day, or at tlie rate of TOOO \wv minute.

At that time cigarette i)roduction was not geared
for volume as it is today, for we were not as yet a great
user of them compared with i)resent-day consumption.
Nor had machinery been developed to tlie present-day
efficiency.

This order and subseijuent similar ones were the
start of quantity production as we know it today, and
marked the introduction of fast efficient machinery in
this country.

u

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in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamson Tobacco Corporation

TUNE lH—**Paul Sullivan Reviews the News" — CBS coast-to-coast network — every night except Saturday

CIGAR BOXES

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P^^^^

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FLAVORS FOR SMOKING and CHEWING TOBACCO

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TOBACCO MEETS IMPACT OF WAR

{Continued from Page 6)

than one-third of the crop. We are trying to arrange
to finance the purchase of about the same amount and
the same grades of the 1939 crop as would normally
be taken by the British trade. Such financing will be
necessary because the British Government finds it dif-
ficult to use the necessary doHar exchange in the to-
bacco market. However, in talking with growers, deal-
ers, processors, bankers, and others, we find general
agreement that it w^ould be unwise to complete these
etforts until it is known whether growers will regulate
their marketings in 1940.

Now, in this time of emergency, it is easy to see
the need for united action — it is easy to see the need
for surplus control. But I wonder how nmch thought
the people in the flue-cured tobacco industry are giv-
ing to the measures needed to carry an adjustment and
price-supporting program through to a successful con-
clusion. This present emergency is not the first which
has confronted tobacco growers. In this changing
world of ours this is just one of a succession of emer-
gencies. Therefore, 1 think we should look beyond the
present and ask ourselves whether we are prepared to
take the action which is required over a period of years
in a long-time program for economic recovery.

x»

EARNINGS OF BIG FOUR

ITII sales volume holding steady aggregate
earnings of the four leading cigarette manu-
facturers for the current year will not show
any sharp change from the $73,744,132 which
they earned in 1938, reports the Wall Street Journal,
Of this total, American Tobacco Co. earned $25,435,643,
Liggett & Meyers Tobacco Co. earned $20,560,884, P.
Lorillard Co. $4,013,299 and Reynolds $23,734,306.

Meanwhile with the reopening of the leaf tobacco
markets this week, the tobacco manufacturing industry
will be in a better position to gauge the extent of the
cost reduction which it will receive next year. Early
sales were at levels from 25 per cent, to 30 per cent,
under the average price for flue-cured tobacco last year,
but the markets have been closed since shortly after the
outbreak of the European war because of the with-
drawal from the markets of the Imperial Tobacco Co.
of Great Britain.

Should the prices on the reopened markets con-
tinue low, and there appears to be nothing to suggest
an advance, and should Burley prices move downward
in December in response to a large crop, manufacturing
costs of cigarette makers next year would move down-
w^ard quite sharply.

This year cigarette makers had the benefit of some
reduction in the cost of tobacco which they use. This
reduction was not very great, however, and expenses
increased along many other lines, to offset a good part
of the decline in tobacco costs.

Tobacco growers voted October 9 on the question
of establishing quotas for the 1940 tobacco crop. Only
last year tobacco farmers, irked by the restrictions of
the law, failed to give the required vote to continue the
limitation of the crop in 1939. With restrictions off,
farmers planted a much greater acreage this year, to
produce a crop of flue-cured tobacco running up near
the billion pound mark, and burley farmers this year
wnll also harvest a much greater crop.

The increase in total cigarette production in the
United States has been so sharp this year that even
though some individual companies may have had a
decline in their share of the total, their actual sales
would not show the same drop. In the first eight
months of 1939 cigarette production in the United
States amounted to 115,028,113,270, compared with
109,621,541,119 in the like period last year, an increase
of 5,406,572,151 cigarettes, or 4.93 per cent. The in-
crease in cigarette production in all 1938 over 1937 was
only 1,032,992,850, or 0.64 per cent.

The Tobacco World

M^MODEL MINSTRELS

EVERY MONDAY NIGHT
COAST TO COAST

CBS

ISII TOUB NIWSrAPII rot LOCAL TIMI)

Tom Howard says he'd go
to almost any lengths for a
pipeful of Model — and he
proves it when he lights
up this one, the daddy of
all his 846 pipe^l "

SALES TAX HURTS SALES

A comparison of New York City's sale of cigarette
tax stamps for the month of September, 1939, with the
cigarette tax receipts for September, 1938, shows a
drop of more than 50 per cent, in September of this
year.

Eric Calamia, president of Retail Tobacco Dealers
of America, Inc., asked to comment upon these figures,
stated that they definitely show that the retailers of
the city are taking a terrific ** beating" because of the
continuation of the city cigarette tax on top of the 2-
cent tax imposed by the State on July 1st, 1939.

**The devastating record of the city cigarette tax
since July 1st, it is hoped," declared Mr. Calamia,
"will convince the Mayor and the City Council that the
city cigarette tax ought to be repealed at the earliest
possible moment to save the 40,000 tobacco retailers in
the city from further business disaster."'

j>

WOOD ON "HIT PARADE

> I

Barry Wood succeeds Lanny Ross as male soloist
on **Your Hit Parade" program, heard over CBS from
9 to 9 :45 P. M. each Saturday, rebroadcast, 12 to 12 :45
A. M., sponsored by the American Tobacco Company
in behalf of Lucky Strike cigarettes. Ross is now
heard thrice weekly in a morning series sponsored by
the Campbell Soup Company in behalf of Franco-
American Spaghetti 11:05 to 11:15 A. M., Monday,
Wednesday, and Friday. Rebroadcast, 1 :45 to 2 P. M.

Mark Warnow's orchestra furnishes the music for
**Your Hit Parade," while Bea Wain will alternate
solos wdth W^ood, who has been one of CBS' featured
young vocalists for several years.

** PRINCE ALBERT" ON AIR

The R. J. Reynolds Tobacco Company has signed
a year's contract for twenty-four Southern and South-
western NBC-Red Network stations to air **The Grand
Old Opry" in behalf of Prince Albert Tobacco on Sat-
urdays from 10:30 to 11 P. M., E. S. T.

The R. J. RejTiolds Company also airs the Camel
Caravan over eightv-two stations of the NBC-Red
Network on Saturdays from 10 to 10 :30 P. M., E. S. T.
William Esty & Co., Inc., is the agency in charge of the
account.

November, 1939

SPRUCE LUMBER

for CIGAR BOXES

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

for the Eye
for Shipping
for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. J.

Esiabliihcd 1886

"BEST OF THE BEST

99

M,,uf,c»ur,d b. ^ SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West, Florida

AUTOKR AFT

CIGAR BOXES

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago. III.
Detroit, Mich.

Hellam, 1^.

Hanover, Pa.

Philadelphia, Pa.

Wheeling. W. Va.

u

Tobacco Merchants' Association

TOBACCO TRADE ORGANIZATIONS

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

2.00
2.00

Transfer,

Duplicate Certificate,

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

Note U— 11 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 niaile. If it necessitates the reporting of more than twenty
(20< titles, but less tnan thirty-one (31), an additional charge of Two Dollars
($2.00} will be made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

NEW REGISTRATIONS

BIRKENHEAD: — 46,748. For tobacco, cigars and cigarettes. Reg-
istered h\ llcnnann Lcwin, Bronx, \. V., on September 9, 1939.

FLOR DE CADELSA:— 46,749. For all tobacco products. Regis-
tered by Cadelsa CiRar ((.o,. .\. ^■., on .August 28, 1939. (By con-
sent of Marcelino Perez & Co., Tampa, Fla.)

TRANSFERRED REGISTRATIONS

PREMIUM HAVANA SCRAP:— 22.873 (Tobacco World). For
cigars, cigarettes, cheroots, stogies, chewing and smoking tobacco.
Registered .August 21, 1911, by Dingman-Evans Co., Seattle, Wash.
Through mesne transfers accjuired by Lester & Lester, San Fran-
ciso, Cal., and re-tran>ferrcd to Hetzel's, Inc., San Francisco, Cal.,
on April 13. 1937.

MacTAVISH BLEND:— 42,769 (Tobacco Merchants Association of
the I'. .S. ). I'or smoking tobacco and cigarettes. Registered Au-
gust 14, 1922. by N'alkau Dingman & Co., San Francisco, Cal.
Through mesne transfers acquired by Lester & Lester, San Fran-
cisco. Cal., and re-transferred to Hetzel's, Inc., San Francisco, Cal.,
on October 10, 1939.

Internal Revenue Collections for September

Source of Revenue 1939 1938

Cigars $ 1.207,657.67 $ 1,207.343.56

Cigarettes 44.371,946.64 44.137,771.58

SnufT 530,907.63 633,687.91

Tobacco, chewing and smoking 4,934,554.66 4,870,115.17

Cigarette papers and tubes 82,561.07 102,759.64

Leaf dealer penalties 70.00 71.91

* Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue based on

manufacturers' returns of production)

Month of July

Increase or Decrease
Product 1939 Quantity Per Cent.

PluR 4.293.934 — 407,345 8.66

Twist 405.001 — 21,200 4.97

Fine-cut Chewing 400.288 ^ 21.909 5.79

Scrap Chewing 3.089,307 — 2,354,001 43.25

Stnoking 15,261,007 -f 1,255,706 8.97

Total 23.449,537 — 1,504,931 6^03

Seven Months Ending July 31

Increase or Decrease
Product 1939 Quantity Per Cent.

PIuK 29,881.526 — 1.966.027 6.17

Twist 3.209,495 + 223,175 7.47

Fme-cut Chewing 2,695,252 — 58,160 2.11

Scrap Chewing 23,239,402 — 3,020,242 11.50

Smoking 11.1,844,789 + 2,443,216 2.19

Total 172.870,464 — 2,378,038 IM

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

'4

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

<^^

(ESSE A. BLOCK, Wheeling, W. Va 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

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

JULIUS LICHTENSTEIN, New York, N. Y Vice-President

ASA LEMLEIN, N^ew York, N. Y Treasurer

CHARLES DUSHKIND, New York, N". Y Counsel and Managing Director

Headquarters, 341 Madison Ave., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

HENRY J. PINNEY, Worcester, Mass President

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

J. RENZ EDWARDS, Kansas City, Kan Treasurer

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

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

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

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

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

RETAIL TOBACCO DEALERS OF AMERICA, INC.

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

JOHN MAUTE Vice-President

CLIFFORD M. DAWSON Treasurer

MALCOLM L. FLEISCHER Secretary

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

ALVARO M. GARCIA President

THOMAS C. BREEN Treasurer

SAMUEL BLUMBERG General Counsel

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

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

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP, Red Lion. Pa President

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

ARTHUR S. ZIEGLER, Red Lion. Pa Treasurer

RUSSELL S. STINE, Red Lion, Pa Secretary

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

JOSE P. PEREZ, Tampa. Fla President

ARMANDO RODRIGUEZ, Tampa. Fla Vice-President

JOHN LEVY. Tampa, Fla Treasurer

FRANCIS M. SACK, Tampa, Fla Secretary

INDEPENDENT RETAIL TOBACCONISTS'

ASSOCIATION

BERN-ARD SCHWARZ President

ERIC CALAMIA First Vice-President

BEKJ. FRIEDMAN Second Vice-President

JOSEPH GRO.SSMAN Third Vice-President

ARTHUR W.JONES Financial Secretary

LOUIS GROS.SMAN Treasurer

BERNARD BERNSTEIN". 42 Broadway. New York. N. Y Secretary

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA, INC.

JOSEPH FRIEDMAN President

JACK EDEL.STEIN Treasurer

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

WHAT ARE BEEDIES?

Beedies are conical cigarettes wrapped in leaves,
and manufactured in SoutTi India.

There are two kinds of Beedies, scented and un-
scented, the fillers of the former being treated with va-
rious kinds of perfume. The filler tobacco is sun cured
so as to develop a light color. It is usually marketed
for Beedie makers after being chopped into small
pieces which are passed through a sieve. The leaves
are then blended according to the particular brand and
a small quantity is placed in a wrapper and rolled into
a conical shape, the wider end being closed over, while
the open end is tied around with a colored thread. The
Beedies are then finally given a slight singeing. They
are made very easily and are thus turned out all over
South India in bazaars and other places.

Usually about 3 to 7 dilTerent varieties of tobacco
are blended for Beedies, being specially selected for a
smooth, soft texture, and bright color. The Ceylon
varieties of tobacco are not suitable for Beedie manu-
facture, and all Beedies have to be imported from
India. Beedies compete more with cheroots than with
cigarettes.

The Tobacco World

ESTABLISHED

1681

LIBRARY

R a C » 1 V « D

DEC 8 -1939

D E C E M"© BpRienl of Agri™i(«r.

1939

TOBACCO TRADE
SANTA CLAUS AIDE

• In expressing to its readers the ever-
ancient and ever-new wish for a Merry
Christmas and a Happy, Prosperous New
Year, The TOBACCO WORLD is pleased
to add felicitations to all engaged in the
tobacco industry and trade on the privi-
lege which is theirs to serve as aides to
the corpulent Saint of the Holidays.

For to them it is given to dispense as
an accompaniment to holiday cheer that
boon which is "a lone man's companion,
a bachelor's friend, a hungry man's
food, a sad man's cordial, a wakeful
man's sleep, a chilly man's fire . .
there's no herb like unto it under the
canopy of heaven" — tobacco.

The more a manufacturer, a whole-
saler, or a retailer distributes of this
beneficent gift to mankind, the merrier
will be his own Christmas and the
happier and more prosperous the year to
come.

HoBART B. Hankins — Editor

Business Manager — B. S. Phillips

C

Is

There's no finer gift for those who smoke
cigarettes than Camels. You can be sure your
choice is wise — for more people enjoy Camels
than any other brand. And when you give
Camels you're giving the milder, cooler
smoking of Camel's matchless blend of long-
burning costlier tobaccos. Dealers are featuring
Camels in a choice of two attractive gift pack-
ages— 200 Camels in each. There's lots of cheer
in smoking Camels — and in giving Camels!

Prince Albert

If he smokes a pipe then he's bound to appre-
ciate a gift of Prince Albert Smoking Tobacco
— the largest-selling smoking tobacco in the
world. Prince Albert is the famous foo/er-smok-
ing pipe tobacco that's made extra mild and extra
tasty by special "crimp cut" and "no-bite" treat-
ment. There's so much pleasure in giving Prince
Albert because you know your gift will please.
So, for pipe-smokers, this Christmas, give Prince
Albert — the National Joy Smoke!

ids that ar^ sure to please in beautiful Christmas u^rappers

OoM^r^hi. lv:S9, H J. U^y

< < ufnpBfiy, Winiit4Hi-twi«cn. N.C

THE TOBACCO WORLD

Vol. 59

DECEMBER, 1939

No. 12

OUR cigar lighter is a dud without that spark.
And so is your sales effort. Somewhere within
every toi) salesman there is a dynamo that
sparks liim. It generates his enthusiasm, and
without enthusiasm he is nothing. A way to do that is
to go back to our l)egnmings. Remember with what in-
tense enthusiasm, with wliat high resolve, we started
out. In the twenties we liad our iUusions. The world
was our oyster. AVe dreamed great dreams. We've
come along tlie road (luite a hit since then. We're mak-
ing out, hut we're not leaning against the skyline as
we thought we would. Tliat is given to only a select
few. Oiie thing we can always have, however, if we
cultivate it. Tliat is our outlook on life. And from that
outlook s])]-ings that vital spark that makes us sales-
men. Go l)ack in your own mind to your own business
beginnings. Take out your first enthusiasms, your
quick, warm, generous impulses, your fool ideas if you
will. Dust off those original ideals. The joy of any-
thing is in its beginning. Rarely does the ending pan
out as well as the lieginning. For a salesman each day
is a new beginning. Each morning gives us a chance
to start all over again. p]very sale is in itself another
beginning. Those engaged in sales can more than any
other grouj) keep themselves fresh, retain their en-
thusiasm. Guard and preserve that vital spark.

T'S an oldie, but worth repeating, that one
about the first salesman saying, "I made a lot
of good contacts today, ' ' and the second sales-
man responding, ''\ didn't sell a thing,
either." There's a laugh in it, but there's a
lesson, too. And the lesson lies in the definition of
contact. The word comes from the Latin, con, mean-
ing with or together, and tango, touch. It is defined
as the coming together of two bodies in space; meet-
ing; touching; hence, the relation of touching or being
in touch. In psychology, contact is a light pressure
upon the skin; i\ weak l)ut adetpiate stimulus of the
pressure-spots. In mathematics, it's the tangency of
two surfaces or lines. In mining, it's the line of do-
limitation })etween a metalliferous vein and its wall,
or country-rock. In geology, contact is the surface of
junction of an igneous rock and the country-rock, and
generallv of rocks of different ages or kinds. In
anthropology, it's the intermingling of races of differ-
ent degrees of culture. In medicine, a contact is one
who has been exposed to a contagious disease. In
military parlance, it's the position of one body of
troops in relation to another which permits of constant
conmiunication if allies, or of constant observation if
opponents. In astronomy, it's the apparent contact of
the edges of the disks of any two heavenly l)odies or of
one bodv with the shadow of another : said of eclipses,
occultatK)ns and transits. In electricity, it's the touch-

ing or joining of points or surfaces of conductors, per-
mitting tlie passing of How of current. The office dic-
tionary contains no mention of its meanhig as applied
to sah'sniaiiship. In tliis connection, however, a likely
definition would l)e: A contact is an alibi for failure to
get tlie order, which is the essence of salesmanship.

Ills seems like a good time to remember Theo-
dore Roosevelt's saying that the only safety in
our American life lies in spurning the acci-
dental distinctions which sundei- one man from
another, and in paying lioniage to eacli man only be-
cause of what he essentially is; in stripping off the
husks of occupation, of position, of accident, until the
soul stands forth icvealed, and we know the man only
because of his worth as a man.

XCP] a friend sat watching Turner, the great
landscape ])a inter, at work. Impulsively he
said, "It must be wonderful to be born a great
l)ainter." Turner, ordinarily a mild-mannered
man lost his temper, aceording to the story as told in
Coloitidl Xrirs. Dropping his brush, he turned to his
friend and said, 'AVhy do you insult me so? I was
born with l)ut a feeble germ of a])ir!ty. As a result of
effort, struggle, ])ain and tears, 1 develo])ed that germ
of ability. Is it not an insult, when I have finally
arrived, for you to say that 1 was born so .'" Too often
we hear of a man s])oken of as a born salesman, but is
that the ti'utli? Isn't it more likely that the man re-
ferred to was born, like many others, with but the fun-
damental attributes of a good personality? Isn't it
nmre likely that he has gotten where he is by persistent,
hard effort; by develo])ing his ])ersonality through
years of painstaking, intelligent work?

S a whole, the toliacco industry had reason to
be thankful on Thanksgiving Day, whether the
date of the cel<'])ration was tlie 2.')d or 30th of
November. For the K'cords of withdrawals for
the first ten montlis of the year show increases in all
main classifications of tobacco ))roducts. While, liow-
ever, the total of all classes of cigars was up, the ex-
clusive manufacturers of B, C and D cigars could not
join in the general thanks. They were down, ^fakers of
C and D cigars got some eonsolation from the gains
thev made in Oetober alone.

The TOBACCO WORLD (est. 1881) is published by Tobacco World Corporation; Hobart H. Uankins. President and Treasurer; B. S. Ph.Ihps V.ce-President; John Cleary.
SecreTfry Office 2^ Chestnut Street. Philadelphia. Pa. Issued monthly. Subscriptions, available only to those engaged ;\ *'- i"*'-- •"^";*^j; "^J^^^'^^f ^^
is cent! a copy foreign. $1.75 a year. Entered as second-class mail matter. December 22. 1909. at the Post Office, Philadelphia. Pa., under the Act of March 3. 1879.

Tobacco Products Gain in October

Increases Ranged from 4»25X for Snuff
to 47*06^ for Large Cigarettes; Only
Little Cigars Mar Record With Loss

LL tobacco products except little cigars regis-
tered increases in October, according to the
Supplement to the Tobacco Barometer of the
Tobacco Merchants Association of the U. S.
Speaking of the United States product alone, the gains
ranged as follows in the various classifications : cigars
of all classes, 5.74 per cent. ; cigarettes, 15.98 per cent. ;
large cigarettes, 47.06 per cent.; snuff, 4.25 per cent.,
and tobacco for chewing and smoking, 9.04 per cent.
The loss in little cigars was 1.87 per cent.

IT. S. cigars of all classes totaled 551,229,569, as
compared with 525,662,072. P. I. cigars advanced from
18,071,665 to 20,026,361 for a 10.82 per cent, gain, while
P. R. cigars dropped from 193,025 to 94,100, so that
the grand total of 571,350,030, comparing with 543,926,-
762, showed an increase of 27,423,268, or 5.04 per cent.

Class A climbed from 452,149,870 to 477,180,730,
w^ith an increase of 5.54 per cent, in the U. S. product.
P. I. cigars in this class grew from 17,941,255 to 19,-
897,045, thus registering a rise of 1,955,790, or 10.90
per cent. P. R. cigars declined 14.28 per cent. Class
A total was 497,151,475, as compared with 470,177,100,
a growth of 26,974,375, or 5.74 per cent.

Class B declined 1,097,230, or 18.89 per cent. A
drop in the P. I. product and a gain in the P. R. prod-
uct reduced the loss to 18.79 per cent.

Product October, 1939

Cigars :
Class A —

United States 477,180,730 -|-

Philippine Islands ... 19,897,045 +

Puerto Rico 73,700 —

Total 497,151,475 +

Class B —

United States 4,711,923 —

Philippine Islands ... 31,050 —

Puerto Rico 10,200 -|-

Total 4,753,173 —

Class C —

United States 62,896,214 +

Philippine Islands . . . 54,166 -|-

Puerto Rico 10,200 —

Total 62.960,580 +

Class D —

United States 5,475,290 +

Philippine Islands ... 19,100 —

Puerto Rico —

Total 5,494,390 -|-

Class E —

United States 965,412 4-

Philippine Islands . . . 25,000 +

Puerto Rico ,,....

Total 990,412 +

Increase or Decrease
Quantity Per Cent.

25,030,860

1,955,790

12,275

5.54
10.90
14.28

26,974,375

5.74

1,097,230
4,650
2,200

18.89

• « • ■

• ■ • •

1.099,680

18.79

700,160
14,816
87,350

1.13

• • » •

• • • •

627,626

1.01

687,663

31,800

1,500

14.36

• • • •

■ ■ ■ •

654,363

13.52

246,044
20,540

34.20

• • ■ •

• • a •

266,584

36.83

Class C, on the other hand, showed a gain. The
U. S. total was 62,896,214, as compared with 62,096,154,
an increase of 700,160, or 1.13 per cent. P. I. also
gained, from 39,350 to 54,166, but P. R. dropped from
97,550 to 10,200, so that the net gain was 1.01 per cent.

Class D likewise gained. The U. S. total was
5,475,290, as compared with 4,787,627, an increase of
687,633, or 14.36 per cent. P. I. and P. R. losses, how-
ever, reduced this gain to 13.52 per cent.

Class E was largest in its percentage of gain
among the cigars. The U. S. total was 965,412, as com-
pared to 719,368, an increase of 246,044, or 34.20 per
cent. This was increased to 36.83 per cent, by a P. I.
jump from 4460 to 25,000.

There was little loss in little cigars, the decline be-
ing from 14,465,787 to 14,195,560.

U. S. cigarettes totaled 15,384,360,207, as com-
pared to 13,264,393,897, an increase of 2,119,966,310, or
15.98 per cent. P. I. and P. R. cigarettes also showed
gains.

The large cigarette total of 265,300, all U. S., com-
pared with 195,405, of which 15,000 were from P. R.

Snuff and manufactured tobacco gains were
substantial.

Following are the comparative figures:

Product October, 1939

Total All Classes:

United States 551,229,569 +

Philippine Islands ... 20,026,361 -|-

Puerto Rico 94,100 --

Grand Total 571,350,030 +

Little Cigars:

United States 14,195.560 —

Philippine Islands ...

Puerto Rico

Total 14,195,560 —

Cigarettes:

United States 15,384,360,207 +

Philippine Islands ... 124,400 -f

Puerto Rico 497,100 +

Total 15,384,981,707 4-

Large Cigarettes:

United States 265,300 -|-

Philippine Islands ...

Puerto Rico —

Total 265,300 +

Snuff (lbs.):

All United States ... 3,261,057 +

Tobacco (Chewing and
Smoking) lbs.:

United States 26,977,566 +

Philippine Islands ...

Total 26,977,566 +

Increase or Decrease
Quantity Per Cent.

25,567,497

1,954,696

98,925

4.86
10.82

27,423,268

5.04

270,227

1.87

270,227

1.87

2,119,966.310

19,040

496,900

15.98

« ■ • ■
• ■ • •

2,120,482,250

15.98

84,895

Ys,666

47.06

• • • •

• • ■ «

69,895

35.77

132,964

4.25

2,236,686

9.04

• • • ■

2,236.686

9,04

Increases All Along Line in 10 Months

Gains Were Slight, hut 434^ for Cigars
Of All Classes, and 5.53M for Cigarettes
Are Percentages Showing Advances

NCREASES in all main classifications of
tobacco products mark the report of with-
drawals for consumption in the first ten
months of 1939, as released in the Supplement
to the Tobacco Barometer of the Tobacco Merchants
Association of the U. S. The gains ranged from 8/lOths
of one per cent, in chewing and smoking tobacco to 6.09
per cent, for little cigars. Other U. S. gains were 4.34
per cent, for all classes of cigars combined, 5.53 per
cent, for cigarettes, 4.05 per cent, for large cigarettes,
and 3.46 per cent, for snuff.

U. S. cigars of all classes totaled 4,475,091,811, as
compared with 4,288,902,141, an increase of 186,189,670,
or 4.34 per cent. P. I. cigars advanced from 160,847,-
394 to 168,523,964, a gain of 7,676,570, or 4.77 per cent.
P. R. cigars declined from 1,399,525 to 1,276,340, a loss
of 123,185, or 8.80 per cent. The grand total of cigars
thus was 4,644,892,115 as compared with 4,451,149,060,
a rise of 193,743,055, or 4.35 per cent.

Class A accounted for 4,024,516,375 of the U. S.
total, as compared with 3,815,291,040, an increase of
209,225,335, or 5.48 per cent. A smaller percentage of
increase from P. I. and P. R. reduced this Class A rate
of gain to 5.46 per cent.

Class B in the U. S. totaled 33,731,382, as com-
pared with 42,494,720, a decrease of 8,763,338, or 20.62
per cent. Gains in the inconsiderable withdrawals of

Product

Cigars:
Class A —

United States

Philippine Islands
Puerto Rico

Ist 10 mos.
CaL Yr. 1939

4,024,516,375 +

167.863,000 4-

879,690 +

Increase or Decrease
Quantity Per Cent.

209,225,335

7,602,055

93,165

5.48
4.74

Total 4,193.259,065 +

Class B —

United States

Philippine Islands
Puerto Rico

33,731,382 —

85,987 -f

177,900 4-

Total

33,995,269

Class C—

United States 385,428,318 —

Philippine Islands ... 260,224 +

Puerto Rico 217,250 —

Total 385,905,792 — 14,382,960

Class D —

United States

Philippine Islands
Puerto Rico

28,153,277 —

267,001 +

1,500 —

Total

28,421,778

Class E —

United States

Philippine Islands
Puerto Rico

3,262,459 +
47,752 +

The Tobacco World

Total

3,310,211 +

216,920,555

5.46

8,763,338

20,384

104,400

20.62

• • • •

• • • •

8.638.554

20.26

14,072,498

8,788

319,250

3.52

• • ■ •

• • • «

14,382,960

3.59

703,152

15,548

1,500

2.44
6.18

• • « •

689,104

2.37

503,323
29,795

18.24

• ■ • •

• * « •

533,118

19.20

P. I. and P. R. products shortened this loss to 20.26 per
cent.

Class C in the U. S. totaled 385,428,318, as against
399,500,816, a drop of 14,072,498, or 3.52 per cent. A
small P. I. gain and a large P. R. loss brought the net
decline to 3.59 per cent, in this class.

Class D in the U. S. totaled 28,153,277 as com-
pared with 28,856,429, a difference on the wrong side of
the ledger of 703,152, or 2.44 per cent. There was a
substantial gain from P. I. and a small loss from P. R.
The net decline was 2.37 per cent.

Class E in the U. S. went from 2,759,136 to 3,262,-
459, a rise of 503,323, or 18.24 per cent. A nice in-
crease in P. I. Class E, brought the total gain up to
533,118, or 19.20 per cent.

Little cigars, all U. S. were up 7,864,328 (from
129,130,899 to 136,995,227) or 6.09 per cent.

Cigarettes in the U. S. totaled 145,202,378,287, as
compared with 137,596,912,963, an increase of 7,605,-
465,324, or 5.53 per cent. The percentage of gain re-
mained the same as the result of a P. I. loss and a P. R.

gain.

Large cigarettes increased 82,111, or 4.05 per cent.,
reduced to 0.38 per cent, by P. I. and P. R. losses.

Snuff gained 1,063,614 pounds, or 3.46 per cent.

The increase of manufactured tobacco was 0.80 per

cent.

Following are the comparative figures :

Ist 10 mos. Increase or Decrease

Product CaL Yr. 1939 Quantity Per Cent.

Total All Classes: „ , ,^

United States 4,475,091,811 + 186,189,670 4.W

Philippine Islands ... 108,523,964 + 7,676,570 4.77

Puerto Rico 1,276,340 — 123,185 8.80

Grand Total .... .. 4,644,892,115 -j- 193,743,055 4.35

I ittle Citrars '

United States 136.995,227 + 7.864,328 6.09

Philippine Islands ... • • • •

Puerto Rico • • • •

Total ~. 136,995.227 + 7.864.328 6.09

Cisarettes '

United States 145,202,378,287 + 7,605,465,324 5.53

Philippine Islands ... 1,210,567 — 370,356

Puerto Rico 4,556,630 + 1.297,350 ....

Total .145,208,145,484 + 7,606,392,318 5.53

Large Cigarettes: „^,.. ^ --

United States 2,109,886 -H 82,111 4.05

Philippine Islands ... 121 — 40 ....

Puerto Rico 160,300 — 73,550 31.45

ToUl 7. 2,270,307 + 8,521 0.38

Snuff (lbs.):

All United States .... 31,806,022 + 1,063,614 3.46

Tobacco (Chewing and
Smoking) lbs.:

United States 256,496,203 + 2,044,755 0.80

Philippine Islands ... 564 + 517

Total '. 256,496,767 + 2,045,272 0.80

December^ 1939

L. & M. CHRISTMAS PACKS

Snles-iiiakiii,i» color is used with a lavisli band in
{]\v smart new Cliristnias packaiics t-reated this year by
Li,i'-^'ett «S: Myers Tobacco ('oni})any for Cliestcifiold
('ii^arettes, Velvet Sniokinu' Tobacco and Gi'an<»er Pipe
Tobacco. These new packages will l)e on view in sales
windows and on sales counters across the continent
startinii' al)ont December 1st.

Leaibni-* the lioliday i)aiade are the Chesterfield
cartons of twenties and flat fifties. Against an all-red
Ijackgronnd, a girl in a blemling red gown lights her
Chesterfield from a giant Christmas candle. The gow^n
and ta])le decoiations should have a wide appeal espe-
cially for women customers.

In the Granger gift cartons, red panels form the
Ijackground for a Christmas lireside scene in rich
browns. The picture shows a hunter and his dog, the
hunter, incidentally, l)eing Ducky ]\Iedwick, famous St.
Louis Cardinal slugger and a man who enjoys his i)ipe.
Large panels to the left and right illusti'ate the blue
Granger humidor tin inside.

Velvet tobacco features a blue "Merrv Christmas"
carton ... a moonlight scene, i)ortraying a cozy
home ])y a snow-covered road, with the apt Velvet cap-
tion "At home pii)e or cigarette."

CUBAN TOBACCO EXPORTS

I'BAX tobacco exports in September, VXV,),
were valued at $1,582,311, the largest for any
month so fai- this year. Kxports in August,
1931), were valued at $l,l(KM)ni, and $1,095,-
816 in September, 1938. The increased value of Sej)-
teniber, 1939, exijorts was due chi'^lly to larger ship-
ments of leaf tobacco, as the volume and value of cigar
exports was somewliat less than in the preceding
months. As stated in a rt'view of Cuban oflicial statis-
tics from the American Consulate Geneial, Ilabana,
made available to the trade by the Tol)acco Division,
Department of Connneree, all leading markets for
Cuban tobacco, exce]>t the United Kingdom, Fi'ance,
and Chile, shared in the gain in exports during Sep-
tember, sliipments to the Cnited States Jiaving
amounted to $1,09(1,589, a bO per cent, advance over
$687,376 in August, 1939, and 53 per cent, over $716,-
147 in September, 1J)38.

Cul)an tobacco expoits to American markets in
Septend)er, 1939, consisted jirincipally of the follow-
ing: 93,841 pounds of wrap])er leaf, valued at $159,986;

237,376 pounds of filler leaf, valued at $113,796; 1,-
010,840 pounds of unstennned leaf, valued at $708,732;
279,984 pounds of sera]) tol)acco, valued at $77,392, and
325,519 cigars, valued at $36,617.

While tobacco expoits from Cuba to the United
Kingdom, consisting chiefiy of 1,334,987 cigars, valued
at $141,369, were not ai)preciably less than the average
for other months, the effect of Huro})ean hostilities on
the Cuban tol)acco trade is evident in the al)sence of
any shipments to Germany (to which exports in Au-
gust, 1939, were valued at $30,781), and in the decline in
exports to France to $540, in comparison with $35,-
217 in August.

The increased value of exports in 8ei)tem])er, 1939,
served to bring Cuban tobacco shipments during the
liist 9 months of the year to a i)oint not far below ihat
lecorded for the sanie pei-iod in 1!)38: $10,688,291, as
against $10,920,602 for the 1938 period. However, dur-
ing the corresponding peiiod of 1937, shipments were
valued at $11,431,013, which is the record for t..at pe-
riod in the past 5 years.

It will be noted that, with the exception of filler
tobacco, exports of all leaf tobacco increased during the
first 9 months of 193!), as comparetl with the same
months of 1938. Therefore, the decrease of over $190,-
000 in the value of leaf exports during the 1939 period
can be attributed only to lower prices, the average
price of wrapper leaf having been approximately $1.57
a pound, as against $1.82 during the first 9 months of
1938; the average price of filler tobacco having been
$0.22 a pound, or 5 cents below that prevailing through
September, 1938; stennned leaf having sold at an aver-
age price of $0.64 a i)ound, as compared with $0.66,
and scrap tobacco having brought $0.26, whereas the
average price during the 9-month period in 1938 was
$0.28. While the volume of cigars exported declined
by 1,175,000, there was not a jiroportionate lowering of
value, since the aveiage price of exj^orts during the
first 9 months of 1939 was about $100.67 a thousand
cigars, in comparison with $97.33 during the 9-nionth
period of 1938.

The value of the Cuban tobacco export trade with
the United States during the first 9 months of 1939,
amounting to $6,742,337, was larger than in the same
period of the past 5 vears: 1938, $6,357,072; 1937, $6,-
607,948; 1936, $4,940,422; 1935, $6,085,522. This rec-
ord has been established, in spite of the fact that aver-
age prices for 1939 shiinnents to the United States have
been substantially lower than during the first 9 months
of 1938, and, for the most part, have been lower also
than in the same period of 1937.

Leaf tobacco exi)orts to the United States regis-
tered a gain of 10 per cent, over shipments in the 9-
month period of 1938, all types of leaf, with the excep-
tion of filler, showing an advance.

In the order of their imjiortance as markets for
Cuban tobacco, during the first 9 months of 1931), the
following countries, other than the United States, are
given : the United Kingdom, Spain, France, Germany
(including Austria), Argentina, the Netherlands, Chile,
Peru, Uruguay, Canada, and Puerto Kico.

Prepare for Big Convention!

JOSE ESCALANTE

Jose Escalante, i)ioneer cigar manufacturer and
one of the founders of Jose Escalante & Co., died in
New Orleans, October 29th, at the age of 67. He was
a native of Asturias, Spain, and had lived in Tampa,
Florida, more than forty years and was for many years
an officer and director of the Tampa Cigar Manufac-
turers Association.

The Tobacco World

PPROPRIATELY named the tobacco indus-
try's foremost annual event in past years, the
Stli annual National Association of Tobacco
Distributors' convention-exhibit, at the Palmer
House, Chicago, January 17, 18, 19, 20, 1940, will be far
more all-embracing in scope than any of the highly
successful conventions of NATD that have made his-
tory in the industry. As a happy augury of the occa-
sion. Mayor Edward J. Kelly, of Chicago, has pro-
claimed the week of January 14th as "Chicago Tobacco
Week." The Chicago Chamber of Connneree, that
hard-hitting organization of civic leaders who live up
to the slogan of the Western Metropolis : "I Will," has
given its wdiole-hearted support to insure the success
of the convention-exhibit. Representatives of the to-
bacco and allied industries will be extended a warm
welcome individually and collectively.

Past convention-exhibits of the NATD have been •
distinguished by the well-planned programs that raised
these affairs above the ordinary, cut and dried con-
ventions in that every one of the delegates returned
home with a clearer understanding of his individual
problems — and armed with methods of combatting
them. Furthermore, he learned liow to profit by ever-
changing merchandising trends and was stimulated to
greater enthusiasm for participation in the wholesale
branch of the industry. The forthcoming convention-
exhibit carries this basic principle of an NATD annual
gathering to greater heights in both business and so-
cial aspects.

The tentative program arranged for the 8th an-
nual convention-exhibit makes it a "must" on the date
book of every far-sighted member of the wholesale
division of the industry. For example, the open forum
or symposium will bring into the bright light of open
discussion the favorable and unfavorable phases of the
unfair sales law and unfair practices acts. Practi-
cally every wholesaler is affected by aspects of these
acts. This symposium will be informal but problems
will be threshed out by those affected. No theoretician
or "big name" will load the discussion. These discus-
sions are tentatively planned for January 19th or

20th.

To further equip the delegate with a better under-
standing of all phases of his business, two days will be
devoted to round table conferences. Among the sub-
jects to be discussed are :

What should be done to increase the sale of cigars
retailing at 10 cents and more!

Have the semi-private brands of the tobaccos fea-
tured extensively by distributors during recent years
justified the efforts expended to promote them?

Are cigarette vending machines capable of with-
standing the constantly growing onslaughts of state
and city imposts and other tax levies?

What can be done to reduce the high percentage
of sales of controlled products (especially cigars)
through subjobbers? , ^, ,.

What are the essential factors in traming the dis-
tributors' sales staffs to fully perform the sales and
auxiliary services required by changing business

trends? ., . ^ , i- , .

In a well organized distributing establishment,

what are the complete selling and auxiliary functions
of a salesman?

December, 1939

Are wholesale tobacco distributors' methods of op-
eration detrimental or beneficial to the candy industry?
What are the requisites for the successful i)romotion
of confectionery products!

Would the price stabilization of nationally adver-
tised brands permit the survival of inefficient whole-
salers !

Is it incumbent on wholesale tobacco distributors
to combat state and city tobacco taxes ?

What is considered adequate compensation for
affixing state and city tax stamps !

Siiould the manufacturers be encoui-aged to affix
all state and city tax stamps?

Can service distributors be expected to further the
sales of nationally advertised tobacco i)r()ducts when
their financial returns on such goods are inadequate to
recoup the actual cost of operation?

Is it generally conceded that the merchandising
technique employed by a majority of the small inde-
pendent merchants is in dire need of improvement?
What can the wholesale distributor do to help correct
this condition?

It is generally recognized that the extension of
credit to retail trade is predicated on coiilidence rather
than conmiercial rating. What can be done toward the
adoption of a more comprehensive method of credit ex-
tension to retail accounts!

The exhibit has been expanded for the 8th annual
convention. Several hundred manufacturers will pre-
sent their newest developments in products and serv-
ices. This represents a big-time saving factor for the
visiting distributor. In fact the exhibit is well worth
the trip to Chicago even if the convention were not held
at the same time.

The banquet and gala entertainment will highlight
the social side of the intensely profitable four days.

XMAS AT WINSTON SALEM

OT boxes of candy, and not merely barrels
of candy— but tons of it— striped sticks and
long-lasting drops— are arriving in Winston-
Salem, N. C, for the biggest Christmas
partv in America. Along with the candy, too, toys:
Funnv things on sticks, and horns and other
% noisemakers. ("onies the 20th of December and
50,000 farmers, their wives and children will be
here for the annual tobacco Christmas party, "ten-
dered " as the society editors would say, to Tar Heels
who annuallv bring their tobacco to this center of
cigarette production. Started as a rather modest and
local affair, the annual Christmas party has grown al-
most out of bounds, with some families coming for hun-
dreds of miles for the festivity. Now the party requires
a dozen important committees and thousand of dollars
for expenses, donated by tobacco warehousemen and
the community.

A month before the date of the party, over 55,000
tickets had been requested by farmers who planned to
attend the event, and now requests are coming m at
the rate of over 5000 per week. Last year, dO,OUl>
country folk came to the party, and preparations are
being made for 50,000 this year. The event will be held
in Bowman Gray Stadium.

REYNOLDS HOLIDAY PACKAGES

Here are some holiday specials from the R. J.
Reynolds Tobacco Company.

Flat fifties of Camels packaged in an entirely new
way. The four packages of fifty cigarettes each come
in a wrapper designed as a house — with snow-covered
roof, holiday wreaths at the windows, greeting card at
the door. AVlien empty, the wrapper can be used as a
play house, chimney and all.

This year's gift carton of Camel cigarettes is holi-
day red, decorated with a beaming Santa Claus holding
a greeting card. The wrapping also features the new
Camel slogan . . . "Long-Burning Costlier Tobac-
cos." The contents : ten packs of 20 's (200 cigarettes).

The big red tin humidor of Prince Albert Smoking
Tobacco is all wrapped up for Christmas in a cheerful
holiday jacket. On top, Santa Claus holds a greeting
card, ready to be filled in. A great seller to the pipe-
smoking men of the family. Another Christmas favor-
ite is Prince Albert in the glass humidor. Both con-
tainers hold one pound of Prince Albert, **the National
Jov Smoke.*'

TOBACCO OUTLOOK FOR 1940

RODUCTION in 1939 has been excessive in the
flue-cured and Burley t5T)es, which usually
comprise more than 75 per cent, of the total
production of tobacco. Stocks of these types*
are high and the excess of 1939 production over pros-
pective disappearance will result in burdensome stocks
in 1940. However, growers have adopted a marketing
quota program for 1940 which should go a long way
toward correcting the unbalanced situation in flue-
cured tobacco. For most other types the 1939 produc-
tion is fairly well in line with the prospective disap-
pearance in 1939-40 and stocks a year hence are not
expected to be excessive in relation to consumption.

Because of the war in Europe exports in 1939-40
may be greatly reduced but foreign consumption of
American tobaccos may be maintained at about 1938-
39 levels by withdrawals from stocks of American leaf
held abroad.

With improving business conditions and increasing
employment the domestic consumption of cigarettes
and cigars will probably continue to increase. Little
change in the total consumption of other tobacco prod-

ucts is anticipated. The consumption of smoking to-
bacco and snuff has increased recently but the consump-
tion of chewing tobacco continues to decline.

Although the foreign-demand prospects for the
1939-40 marketing season are subject to radical changes
owing to the number of uncertainties involved, the out-
look at present is for substantially reduced exports.

The European war is disrupting channels of trade
and delaying the export movement, and it has already
counted for about three-fourths of our total tobacco ex-
change and sharply increased freight and insurance
rates. In addition, the trade with neutral European
countries may also be adversely affected by the high
cost of shipping and disruption of trade. During the
last 2 years the countries that are now belligerent ac-
counted for about three-fourths of our total tobacco ex-
ports to Europe.

Stocks of tobacco in the principal European im-
porting countries are now at about normal levels and
are sufficient to supply manufacturers' requirements
for about 2 years. This permits such countries to defer
further importations of tobacco and to give priority
in foreign exchange and shipping facilities to the more
urgently needed supplies. The war may be expected to
delay the movement of United States tobacco rather
than to result in any sharp change in the actual volume
of consumption abroad.

J'ar-reaching shifts in the consumption of tobacco
products have occurred in most countries since the
World War, but it is probable that some of the develop-
ments in the exports of American leaf tobacco during
the World War period may be repeated. During the
World War, the imports of tobacco into Europe de-
creased, so that foreign stocks of American tobacco
also decreased. This in turn led to greatly increased
exports after tlie war to replenish stocks. A beginning
of what may l)e a similar sequence of changes appears
to have occurred as a result of the present war. Im-
ports of American tol)acco by Great Britain have been
stopped for an indefinite period; this will have the
effect of depleting British stocks of American tobacco
and is likely to mean increased purchases at a later
time.

Notable differences in the present situation com-
pared with that at the time of the World War are the
greatly increased production of tobacco, especially flue-
cured, in the British Empire and other foreign coun-
tries, and the much higher level of cigarette consump-
tion now prevailing. During the World War, the con-
sumption of cigarettes was much smaller but was ex-
panding repaidly. At this time it is increasing slowly.

In view of the restrictions imposed by the British
Government on the use of foreign exchange, exports
to the United Kingdom during 1939-40 are likely to be
greatly below those of 1938-39. British stocks of Amer-
ican flue-cured leaf are at a normal level, while those
of Empire flue-cured leaf are relatively high, particu-
larly Indian and Canadian. Exports to China, our sec-
ond ranking market for flue-cured leaf, are expected to
be below the 1938-39 level. It is too early to know
whether the Australian foreign-exchange control re-
cently instituted will adversely affect our export of
flue-cured leaf to that market.

Production of flue-cured leaf in the principal pro-
ducing foreign countries in 1938-39 is estimated at
around 384 million pounds, or about 16 per cent, greater
than in 1937-38, and about 3 times that of 1930-31. This
upward trend is expected to continue. '

{Continued next month)

The Tobacco World

Cigars are the
most pleasurable
and economical
form of smoking.

BAYUK BULLETIN

Devoted to the
best interests
of the men Mrho
■ell cigars.

FiTit Issued 1929

DECEMBER 2, 1939

Prepared twice a month

MAKE MORE mHlt THIS CHRISTMAS

Tie in with this big annual drive. Boost this slogan

^'CIGARS ARE THE N^ 1 GIFT FOR A MAN"

Dealers all over the country
sold hundreds and thousands
of extra cigars last Christmas
by tying into this big annual
hoUday cigar drive — a nation-
wide promotion that is increas-
ing in importance every year.

This season the plans are all
set for the biggest drive yet.
Publicity from coast to coast will
spread the idea that "Cigars are
the Number 1 Gift for a Man".

More radio, more newspaper
publicity, more posters and dis-
play material will be used than
ever before. Beautiful Christ-
mas wrappers, especially design-

PhilUes

Havana Ribbon
Blapacuba

Charles Thomson
Prince Hamlet

BAYUK BBAND9 BUILD BUSINBtS

ed to promote sales of cigars by
the box, are already out.

Be sure you get your share of
this plus GIFT business — and
plus PROFITS. All you have to
do to cash in is tie in.

7 tested ways to

increase your CHRISTMAS

CIGAR PROFITS

1. Don't wait until people have
bought their gifts. Get your
Christmas Cigar display up
EARLY. Put in a window
poster first thing — and keep
it up throughout the holiday
season, which means until
New Year's.

2. Put a table out in the center
of your store with holiday
boxes attractively arranged
and the prices plainly mark-
ed. It will make sales by itself.

3. Pay special attention to wo-
men who come in. They make
good customers for gift cigars

for husband, brother, father
or boy friend.

4. Have some cards printed, list-
ing your leading brands and
prices, to hand out to custom-
ers. All the customer then
needs to do is fill in the names
of friends he'd like to send
cigars. You deliver on Christ-
mas Eve.

5. Write a letter to business
firms that employ men and
suggest that cigars make an
excellent gift for employees
(and customers) and that
you'll be glad to furnish holi-
day wrapped cigars.

6. Drop a note to the wives of
your regular customers, tell-
ing them you know what the
husbands' favorite brand is
and you'll be glad to supply
special Christmas boxes.

7. Remember, New Year's also
gives you a chance to make

extra box sales. Lots of
people say "Happy New Year"
with a gift — and here again
the "Number 1 Gift for a
Man is Cigars'

.»»

TO EVERY READER

OF THE

BAYUK BULLETIN

PHIL WISHES A VERY

MERRY CHRISTMAS!

AdvmrtUmmmml

Virginia Gains In Cigarette Making

IGARETTE manufacturing in Virginia, which
is heavily concentrated in Richmond, has in-
creased 912 per cent, within the last eighteen
years, and now accounts for 31.2 per cent, of
the industry's output in the entire United States, ac-
cording to a study on the subject released by the re-
search department of the Richmond Chamber of Com-
merce. It shows the gain is far greater than those reg-
istered by North Carolina, which is the leading com-
petitive State, and by the nation as a whole.

The analysis, which takes in the period from 1920
through 1937, reveals that North Carolina is still the
leading State in the manufacture of cigarettes, but its
margin over Virginia has been cut tremendously.
Eighteen years ago North Carolina produced 4.6 times
as many cigarettes as this State, but latest figures show
the lead has been reduced to 1.7 more cigarettes. North
Carolina's percentage of the national output remained
almost stationary, according to the study, while that of
Virginia has increased almost three-fold.

The State of New York, which was second in ciga-
rette manufacturing in 1920, is now a negligible factor.
Virginia and North Carolina now account for more
than 83 per cent, of the national output, and Kentucky
has entered tbe picture as the third largest producing
State. The 1937 production figures for the nation were
170 billion, of which 88 billion came from North Caro-
lina, 53 billion from Virginia, and 13 billion from Ken-
tucky.

The analvsis shows more than the fact that Vir-
ginia has enjoyed a tluimping gain over other cigarette
manufacturing centers and the nation as a whole. It
reveals that the industry itself also has registered phe-
nomenal increases in the last eighteen years. Ciga-
rette production over this period increased 258 per
cent, in the United States and 266 per cent, in North
Carolina.

The manufacture of cigarettes is the leading in-
dustry of Richmond and, when measured by value of
products, the first ranking industry of Virginia. Both
in its direct influence, and in its indirect influence upon
related industries, the cigarette industry is of vital im-
portance in the economic structure of Richmond and
Virginia.

This study is an appraisal of the growth of the
cigarette industry in Virginia as compared with the
leading competitive State and the nation as a whole.
The cigarette industry in this State is heavily concen-
trated in Richmond, although it is impossible to deter-
mine the exact degree of this concentration as separate
data for the city are not available.

Over the eighteen-year period included in this
study, from 1920 through 1937, the production of ciga-
rettes in Virginia has increased year by year with
minor exceptions. The rate of increase from year to
year has been substantially greater than that prevail-
ing in the industry as a whole in the nation, and equally
as great compared with the increase in the major com-
petitive State.

In 1920, while Virginia ranked as an important
cigarette manufacturing center, it was completely over-
shadowed by North Carolina and New York in this
respect. In that year, Virginia produced less than
5% billion cigarettes as against a production of more
than 24 billion in North Carolina, almost 11 billion in

10

New York, and more than 47 billion in the nation as a
whole.

In other words. North Carolina was producing 4.6
times as many cigarettes as Virginia, while New York
was producing 2.1 times as many. North Carolina to-
day is still the leading producing State in the Union.
New York has dropped from its leading position and is
a negligible factor.

While North Carolina is still the leading State in
the manufacture of cigarettes, its margin over Virginia
has been cut tremendously. In 1937 North Carolina
turned out only 1.7 times as many cigarettes as Vir-
ginia. Thus the ratio of production in the leading com-
petitive State over Virginia has been cut from 4.6 to
less than 1.7 over this eighteen-year period.

In 1920 Virginia produced only 11.1 per cent, of
the national output of cigarettes. In 1937 that ratio
was 31.2 per cent. North Carolina's ratio in the same
two years was 50.8 and 51.9 per cent, respectively. It
is seen, therefore, that the relative importance of North
Carolina was almost constant after eighteen years,
whereas the relative importance of the Virginia pro-
duction to the total had increased almost three-fold.

Virginia and North Carolina, the two leading cig
arette-producing States, now account for more than 83
per cent, of the national output. New York has
dropped almost completely out of the picture, produc-
ing in 1937 less than one-tenth of 1 per cent, of the
national total. Kentucky has entered the picture as
the third largest producing State.
7— TOBACCO WORLD Oct. 24 Rutter

Virginia's ])roduction of cigarettes over the eigh-
teen year period increased enormously in comparison
witli tlie leading competitive state and the nation as a
whole. Production, over this period, increased only
258 per cent, in the nation as a whole, 266 per cent, in
North Carolina, as against a gain of 912 per cent, in
Virginia.

Thus, over this entire period, the production of
cigarettes in Virginia increased at an average com-
pounded rate of 14.6 per cent, as compared with 7.9
per cent, in North Carolina and 7.8 per cent, in the na-
tion as a whole.

In 1937, the total production of cigarettes in the
United States amounted to 170 billion, of which 88
billion came from North Carolina, 53 billion from
Virginia, and 13 billion from Kentucky.

Kentucky, today the third largest producing state,
was a negligible factor until 1929. During this year,
its production rose to 3706 million from a total of 717
million the year before. In 1932 production in this
state jumped again to a new total of 10,969 million.

Since 1932, however, production in Kentucky has
increased at a relatively low rate. Over the period
1932-1937, Kentucky production increased 14.3 per cent,
as compared with a gain of 83.1 per cent, in Virginia
and a 59.4 per cent, increase in the nation as a whole.

In the last year studied, Kentucky production was
still only 7.4 per cent, of the national output, so that de-
spite increases in 1929 and 1932, this state is still over-
shadowed by Virginia and North Carolina.

When the cigarette industry in compared with the
volume of industrial production as a whole in the na-
tion, the amazing growth of the former is clearly indi-
cated.

The Tobacco World

FLUE-CURED PRICES LOWER

VERAGE prices for Georgia flue-cured to-
bacco sold this season were much lower than
last season, according to the Agricultural
Marketing Service. Better quality grades
were from $5 to $11.50 per hundred lower. The lower
quality lugs and primings were ol¥ from $2.25 to $9.
The smallest declines were shown by the lower quality
leaf and smoking leaf grades which were down only
from 25 cents to $3.50 per hundred. The market was
fairly steady from day to day after opening well below
last year's averages.

The quality of the tobacco was not as good as that
sold last year. Nearly half of the sales consisted of
connnon to fair quality leaf. Fair to fine quality lugs
and connnon to fine quality primings were offered in
large volume. Smoking leaf and cutters were sold in
comparatively small quantities. The crop was consid-
ered to be better suited for export purposes than for
the needs of the domestic tobacco manufacturers. Con-
sequently, the heaviest purchases were made by dealers
and by companies representing foreign interests.

The markets opened on July 25 with sales heavy
in volume. Sales were blocked on most markets up un-
til a few days before each closed for the season. The
first market closed on. August 11, most of the others
held final sales during the period of August 15 to 17
and the last market closed on August 25. The 1939
crop was marketed in one of the shortest periods on rec-
ord considering its size. Gross sales for the season
as reported by the seventeen Georgia and Florida mar-
kets were 121,380,332 pounds at an average of $12.69.
First-hand sales on the same markets last season
amounted to 105,866,477 pounds at an average of $20.34.
The 1939 production of all flue-cured tobacco is esti-
mated as 1,028,000,000 pounds. Stocks of flue-cured
tobacco owned by dealers and manufacturers on July
1, 1939 were reported as 799,552,000 pounds and were
about 13 million pounds lower than on July 1 of last
year.

AUCTION MARKET SALES

HE auction markets of llughesville and Upper
:Marlboro, ]\Iaryland, closed the 1939 season
with first-hand sales totaling about 7,141,000
pounds, the Agricultural Marketing Service
reports. Average prices the last week of sales, com-
pared with the opening week, were from $1 to $10 per
hundred liigher on all qualities quoted. The better
(lualities showed increases of from $2 to $5 per hun-
dred. The majority of the lower qualities ranged from
$5.50 to $9.50 per hundred higher.

Averages for the season, with the exception of
green grades ranged from $28 to $37 per hundred for
good to choice (juality dull crop; from $18 to $30 for
low and fair (lualitv dull; from $9.50 to $22.50 for fair
qualitv tips; from $24.50 to $39.00 for low to choice
qualitv bright crop ; from $22 to $32 for good to choice
qualitv stemming seconds ; and from $5.25 to $14.50 for
low to good quality granulating seconds. All low and
fair qualities, including green, averaged from $3.75 to
$12.25 per hundred.

Onlv a comparatively small percentage of the
better qualities was sold. Low and fair qualities made
up the bulk of the sales with tobacco of heavy body pre-
dominating. A large percentage consisted of law qual-
ity dull, tips, and nondescript.

December, 1939

P. LORILLARD COMPANY, Inc.

119 We$t 40th Street • New York City

Is offering an unusually attractive line of Christmas Wrapped
Packages this year. . . packages that will help you sell Merchondise

^Ssgi

J!ut«

Auction sales of tobacco in Maryland were held the
first time in the State's liistory this year. Sales
started on May 1, 1939, and continued until the season
closed on September 14. All buying interests, with the
exception of the French Government, were represented
throughout tlie entire marketing period. Bidding was
iictive, and growers wlio sold their entire crops on the
auction floors wore generally well pleased with the aver-
age prices received. The volume of sales far exceeded
the most optimistic estimates made at the opening of
the season.

PHILLIES XMAS PACKAGE

Phillies package for Christmas, 1939, is winning
high praise from those who have previewed it. Selcctt'd
from more than a dozen special designs, the new
Phillies wrapper employs the two basic Christmas col-
ors of red and green, 1)ut achieves a new and modern
interpretation tluough the use of a shaded-tone effect.

Result is an unusually striking package — rich, col-
orful, simple. Of s]K'cial note are the display possibili-
ties of this year's Phillies package. It is particularly
adapted for eiTective mass display, as experts in this
fine, who have seen it, have been (piick to point out.

Bayuk Cigars, Inc., has loon been known for its ,
constructive work in encouraging the use of special
packages for special occasions, such as Father's Day,
Labor Day, Week-lOnd Specials, Christmas and other
holidays. Year after year, it has helped increase the
sale of cigars by the box. This 1939 Phillies Christmas
package is one of the best examples yet of the selling
possibilities of a special package.

it

NOW...FOUR EXTRA COUPONS

in every carton of Raleigh plain ends . . . Save
these valuable coupons for extra profits . . .
cash or wide choice of handsome premiums.

Brown & Williamson Tobacco Corporation

TUNE \H-"Paul Sullivan Reviews the News"— CBS coast tocoast network — every night except Saturday

CIGAR BOXES

T»l. AUonqoia <-*532

Establlstaetf UT!

Kic^^^sco

•S7>64l CASTITHST.
MBIT votnc

OUR HIGH-GRADE NON-EVAPORATING
CIGAR FLAVORS

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

FLAVORS FOR SMOKING and CHEWING TOBACCO

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

FRIES & BRO., 92 Reade Street, New York

CITY TAX HURT SALES

TLe figures covering cigarette stamp sales for the
month of October furnish further unmistakable evi-
dence of the disastrous efifect of the combined citv and
state cigarette taxes upon the businesses of the 40,000
or more New York City dealers, according to Eric Ca-
lamia, president of the Retail Tobacco Dealers of
America. They show that the city stamp sales fell off
over 30 per cent, during the month of October as com-
pared witli October, 1938.

It w ill be recalled that in the month of September,
1939, there w^as a drop of over 51 jjer cent, as compared
with September, 1938. In fact, during the last two
months — September and October — there has been an
actual decline of $518,475.35, or 41 per cent., in the
amount of cigarette stamps sold by the city, as com-
pared with the same months of the preceding year.

Surely, says Mr. Calamia, in the face of this rec-
, ord, no further proof is needed concerning the devas-
tating effect of the heavy triple tax amounting to 9
cents per package of cigarettes (6 cents Federal, 2
cents State, 1 cent city) now imposed on New York
City's smokers, and we sincerely hope, therefore, that
the Mayor and City Council w^ill give immediate con-
sideration to our plea for a prompt repeal of the city
tax.

ANNOUNCE CROP PLANS

ECRETARY of Agriculture, Henry A. Wal-

lace, has announced plans for financing a por-
tion of the remainder of the 1939 crop of flue-
cured tobacco. Under these plans, which have
been approved by the President, the Commodity Credit
Corporation will make purchases of, or loans on that
portion of tlie crop normally taken by foreign manu-
facturers. These foreign concerns, w^ho now have at
least two years' supijly of flue-cured tobacco on hand,
are prevented from making additional purchases this
year because of difficulties in obtaining exchange as a
result of the European War.
The plan is in two parts:

1. Connnodity Credit Corporation will enter into
agreements with foreign manufacturers, wiio withdrew
from the market because of difficulties in obtaining
exchange, authorizing the foreign concerns to buy,
grade, prize and store for the account of the Commod-
ity Credit C'orporation a quantity of tobacco equal to
their normal purcliases throughout the remainder of
the marketing season. Commodity Credit Corpora-
tion will advance funds for the purchase of the to-
bacco and for a portion of the handling charges,
amounting to approximately $1 per hundred pounds.
The remainder of the handling charges amounting to
approximately $1.50 per lumdred pounds at current
contract rates will be paid by the manufacturers. In
consideration for payment of such charges, the manu-
facturers will be given an option extending until July
1, 1941, under whicli they can buy all or any part of
the tobacco if and when exchange becomes available
to them.

2. The Commodity Credit Corporation will offer
loans to domestic buyers who normally make purchases
for foreign manufacturers and who had expected to
discontinue such purchases because of difficulties in
obtaining exchange. The advances will equal the cost
of the tobacco on w\irehouse floors plus handling
charges of $1 per hundred. The remainder of the
handling charges — approximately $1.50 per hundred
— will be paid by the foreign manufacturers for whom
the domestic buyers purchase the tobacco. The loans
will be made to tlie domestic buying organizations.
The tobacco will be released by the Commodity Credit
Corporation upon the repayment of loans if and when
exchange becomes available.

Agreements wath the Imperial Tobacco Company
and the Export Leaf Tobacco (Company were signed
today and details of agreements with other companies

Tk* Tobacco World

iii**liODEL MIIISTRELS

IVERY MONDAY NIGHT
COAST TO COAST

CBS

(III TOUB NtWS^AMB fOK LOCAL TIMI)

Tom Howard says he'd go
to almost any lengths for a
pipeful of Model — and he
proves it when he lights
vp this one, ^he daddy of
all his 846 pipes I -•

are expected to be agreed upon w-ithin the next few
days. When these agreements have been completed
they will cover approximately 175 million pounds of
tobacco. The purchases by Connnodity Credit and
loans to buyers will be limited to a quantity of tol)acco
equal to that normally purchased for tlie trade affected
by the exchange restrictions.

The agreement w4th each company carries a sclicd-
ule of prices under wiiich each company will make its
purchases. The mid-point in this range is the aver-
age price paid for the different grades prior to the
closing of the markets on September 13. The average
price of all grades prior to September 13 was 14.3
cents per pound and approximately 45 per cent, of
the crop has been sold. In recent years the last 55
per cent, of the crop has sold for about 71/2 per cent,
more on the average than the first 45 i)er cent, due to
better grades. If a similar situation should prevail
this year, the average for the remainder of the crop
would be approximately 15.4 cents a pound. However,
due to the fact that the tobacco normally handled by
the companies consists largely of the better grades,
the loans and purchases will average well above the
general market average.

Commenting on the plans. Secretary Wallace said,
** These plans were selected from several different
plans which were presented to us because they appear
to offer the best chance for holding our export trade
and for maintaining prices to farmers near the levels
that prevailed before the closing of the markets.

'* These plans should tend to encourage the oper-
ation of the tobacco markets in a normal manner and
should not interfere w4th or cause material changes in
customary trade practices in Imying and handling to-
bacco. They will encourage operation of all existing
facilitiees at their full capacity and thus make pos-
sible expeditious handling of the remaining portion of
the very large 1939 crop.

**The tobacco w^ill be purchased and handled by
the different companies in accordance with their usual
practices. It will be graded, redried, prized and stored
in the usual manner and when any manufacturer gets
ready to use the tobacco he will know that it is avail-
able in the condition in which he desires it."

Government figures reveal that during the month
of June, 593,218,000 cigarettes having a value of
$1,149,580 were exported. Of this amount, 341,310,000
worth $538,671, was consigned to the Philippine Is-
lands.

December, 1939

SPRUCE LUMBER

for CIGAR BOXES

It's Brighter - for the Eye
It's Lighter - for Shipping
It's Better - for the Cigars

SPECIFY SPRUCE

Uptegrove Lumber Co.

Cigar Box Lumber for 66 years
15 Washington St. Newark, N. J.

Establiahed 1886

"BEST OF THE BEST

99

•^^^1^ A. SANTAELLA & CO.

Office, 1181 Broadway, New York City

FACTORIES: Tampa and Keg West, Hortda

AUTOKR AFT

CIGAR BOXE S

Boite Nature
Cedar Chests

Novelty
Wrapped

Are Outstanding In
Ouality-Design-Cost

AUTOKRAFT BOX CORP.

Lima, Ohio
Chicago, 111.
Detroit. Mich.

H el lam, Pa.

Hanover, Pa.

Phttadeliihia, Pa.

Wheeling. W. Va.

X3

Tobacco Merchants' Association

Registration Bureau,

341 Madison Ave.
NEW YORK CITY

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

Registration, (see Note A), $5.00

Search, (see Note B), 1.00

Transfer, 2.00

Duplicate Certificate, 2.00

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

Note B — li a report on a search of a title necessitates the reporting of more
than ten (10) titles, but less than twenty-one (21), an additional charge of One
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be
made for every ten (10) additional titles necessarily reported.

NEW REGISTRATIONS

BATAVIA: — 46,753. For all tobacco products, pipes and smokers'

articles. Registered by Perfection Tobacco Co., Paterson, X. J., on

October 13, 1939.
GALEPORT: — 46,752. For pipes, smoking tobacco, cigars, cigarettes

and snuff. Registered bv Perfection Tobacco Co., Paterson, N. J.,

on October 21, 1939.

Internal Revenue Collections for October

Source of Revenue 1939 1938

Cigars $ 1,405,485.04 $ 1.341.015.48

Cigarettes 4(j. 155,363.98 39,794.999.21

Snuff 586.990.19 563,056.78

Tobacco, chewing and smoking 4,856.092.12 4.453,652.40

Cigarette papers and tubes 83,213.97 137,852.84

Leaf dealer penalties 111.28 39.50

* Manufactured Tobacco Produced by Classes

(As reported by the Bureau of Internal Revenue based on
manufacturers' returns of production)

Month of August

Increase or Decrease

Product 1939 Quantity Per Cent.

Plug 5,152,871 + 13,244 0.26

Twist 559,543 + 22,821 4.25

Fine-cut Chewing 407,821 — 844 0.21

Scrap Chewing 4,345,762 + 636,951 17.17

Smoking 19,356,896 + 1,394,767 1.11

Total 29,822,893 + 2,066,939 7.45

Eight Months Ending August 31

Increase or Decrease

Product 1939 Quantity Per Cent.

Plug 35,034.397 — 1.952.783 5.28

Twist 3.769,038 -f 245,996 6.98

Fine-cut Chewing 3.103.073 — 59,004 1.87

Scrap Chewing 27,585,1()4 — 2.383.291 7.95

Smoking 133.201,685 -f 3,837,983 2.97

Total 202,693,357 — 311,099 0.15

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

SCATTER BAYUK SUNSHINE

The Christmas fund operated by the ** Sunshine
Club,'* a benevolent and social organization of em-
ployees of Bayuk Cigars, Inc., distributed $473,000 on
November 21.

Including the annual donation bv the companv, the
fund in 1939 is nearly $100,000 greater than in *1938,
the increase being due mainly to increased number of
employees.

J. B. Havre, agent for tlie Tsabela factory, Ma-
nila, is expected in New York in the very near future.
He is much encouraged by the success of the sale of
better grades of Manila cigars on the; Pacific Coast.

H

TOBACCO TRADE ORGANIZATIONS

TOBACCO MERCHANTS ASSOCIATION
OF UNITED STATES

lESSE A. BLOCK, Wheeling, W. Va President

William best, New York, N. Y Chairman Executive Committee

MAJ. GEORGE \V. HILL, New York, N. Y Vice-President

GEORGE II. HUMMELL, New York, N. Y Vice-President

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

JULIIS LICHTENSTEIN, New York, N. Y Vice-President

ASA LEMLEIN. New York, N. Y Treasurer

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

Headquarters, 341 Madison Ave., New York City

THE NATIONAL ASSOCIATION OF TOBACCO
DISTRIBUTORS, INC.

HENRY J. PINNEY, Worcester. Mass President

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

J. RENZ EDWARDS, Kansas City, Kan Treasurer

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

NATIONAL BOARD OF TOBACCO SALESMEN'S

ASSOCIATIONS

BEN L. LASCHOVV^ 862 East Fifteenth St.. Brooklyn, N. Y '...President

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

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

RETAIL TOBACCO DEALERS OF AMERICA, INC.

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

JOHN M AUTE Vice-President

CLIFFORD M. DAW.SON Treasurer

MALCOLM L. FLEISCHER Secretary

CIGAR MANUFACTURERS ASSOCIATION OF AMERICA,

INC., 200 Fifth Ave., New York, N. Y.

ALVARO M. GARCIA President

THOMAS C. BREEN Treasurer

•SAMUEL RLUMBERG General Counsel

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

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

Schwarz.

THE YORK COUNTY CIGAR MANUFACTURERS

ASSOCIATION

CHARLES STUMP. Red Lion. Pa President

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

ARTHIR S. ZIEGLER. Red Lion. Pa Treasurer

RUSSELL S. STINE, Red Lion, Pa Secretary

FLORIDA CIGAR MANUFACTURERS ASSOCIATION

TOSE P. PEREZ, Tampa. Fla President

ARMANDO RODRIGUEZ, Tampa. Fla Vice-President

JOHN LEVY. Tampa. Fla Treasurer

FRANCIS M. SACK, Tampa. Fla Secretary

INDEPENDENT RETAIL TOBACCONISTS'
ASSOCIATION

BERNARD SCHWARZ President

ERIC CALAMIA First Vice President

BENT. FRIEDMAN Second Vice-President

TOSSPH GRO.SSMAN Third Vice-President

"ARTHUR W. TONES Financial Secretary

LOUIS GROS5?M AN Treasurer

BERNARD BERNSTEIN, 42 Broadway, New York. N. V Secretary

TOBACCO SALESMEN'S ASSOCIATION OF AMERICA. INC

JOSEPH FRIEDMAN President

JACK EDELSTEIN Treasurer

LEO RIEDERS, 3800 Broadwav, New York. N. Y Secretary

LORILLARD DENIES CHARGES

Disavowing price discrimination in the sale of its
tobacco products, P. Lorillard Company has tiled with
the Federal Trade Commission a brief denying charges
alleging violation of the Kobinson-Patman Act.

The Lorillard brief is the first answer to be filed
with the Federal Trade Commission which during Oc-
tober issued substantially similar complaints against
seven other nationally-known tobacco companies, in-
cluding Ligett & Myers, Philip JMorris, Larus &
Brother, R. J. Reynolds, Brown and Williamson, Amer-
ican Tabocco and Stephano Brothers.

The complaints alleged that the companies (1)
discriminated in price between different purchasers of
their products of like grade and quality; (2) paid to
certain customers compensation for services and facili-
ties when such compensation was not made available
to all competing customers on proportionately equal
terms, and (3) discriminated against some customers
by supplying certain services to some but not to others.

In answer to these complaints, P. Lorillard Com-
pany filed an eleven i)age brief, exclusive of exhibits
of "drop shipment deals," bills of lading, newspaper
advertisements and jobber invoices.

The Tobacco World

Why Not Get A Livingp
Profit from the Cigar Trade

OUR EXPERIENCE AT THE CIGAR BOOTH IN THE PHILIPPINE PAVIL-
ION ON TREASURE ISLAND, SAN FRANCISCO, PROVES BEYOND A DOUBT
THAT THE BETTER GRADES OF MANILA CIGARS RETAILING AT FIVE
CENTS AND UP FIND GREAT FAVOR WITH SMOKERS.

REPEATS ON THIS CLASS OF MERCHANDISE PROVE ALSO THAT THE
HEAVY SALES AT THE BOOTH IS NOT CAUSED BY CURIOSITY ALONE.

FROM MANY SECTIONS OF THE UNITED STATES THIS OFFICE HAS
RECEIVED INQUIRIES FROM SMOKERS WHO WANT TO KNOW WHERE
THEY MAY PURCHASE THOSE FINE MANILA CIGARS BROUGHT HOME
FROM THE FAIR BY RELATIVES AND FRIENDS.

A GOOD PROFIT MAY BE MADE FROM THE SALE OF THOSE HIGH-
GRADE, HAND-MADE. LONG FILLED MANILA CIGARS. IT WILL REWARD
YOU HANDSOMELY TO START CULTIVATING BUSINESS ON MERCHANDISE
THAT PAYS.

WHY NOT CLEAR THE DECKS AND RETURN TO THE OLD STYLE OF
BUSINESS? MILLIONS OF MEN IN THIS COUNTRY ARE LOOKING FOR
SOMETHING BETTER TO SMOKE.

(List of Factories and Importers on Application)

MANILA AD

{C. A. Bond, Mrrr.)

220 West Forty-second Street

New York, N. Y.

Copyright 1959, Licx.f IT & MvtRS TOBACCO Cx>.

CONTINUED

ON

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