The midland journal. (Rising Sun, Md.) 1885-1947, 1902-01-03
RISE OF THE CIGARETTE.
Statistics Showing the Career OF
''COffin Nails" in the Last
| Twenty Years.

In the year that closed June 30, 1881,
90 years ago, the cigarette was no:
Ia own outside of few of the larger
cities. The industry was in its infancy
for the product, made up by the
tedious and expensive hand process,
had at that date reached the insignifi-
can't total of SOB, S73 1888, and while
there were several manufacturers in
the field, none of these had come into
prominence or taken a commanding
place in the trade. A factor which
probably played an important part in
keeping the manufacture of cigarettes
within narrow boundaries was the tax
ofe$1.75 per 1000, though the price at
which the goods were then sold was
much higher than at later date, and
certainly high enough to afford good
profit to the manufacturer, jobber and
retailer. Still, the growth of business
was small, comparatively speaking,
though it was steady from year to
year.
Within two or three years a vast
change came over the industry. The
internal revenue tax on cigarettes
was reduced May 1, 1888, to so cents
per thousand, but at the close of that
fiscal year on June 80, the production
figures indicate only 602, 237 $40 made
and withdrawn for consumption. But
what then occurs? During the next
12 months the total tax paid product
was pushed up to 90S,09O,723, or in
other words, a so per cent. increase
was added to the production of the
previous year, and from that time for
ward for Is years there was no check
to the ever-increasing consumption OF
paper-wrapped cigarettes until the
dull times of 1898 temporarily dis.
turbed the advance movement.
From the year 1885, competition
which had hitherto been more or less
friendly, began to grow more aggres,
sive. From 1855 to 1890 over 235,000,.
600 cigarettes were annually added to
the number made and consumed. With
the tax still at 50eents per thousand, q
production of 2,39s,254. $3.50 is recorded
for the fiscal year 1890. The fierce
storm of competition soon to break
loose was not then anticipated.
BY 1898 one company was In the field,
and shortly after that date several OF
the leading tobacco manufacturers
were making preparations to preserve
their business Intact by introducing
cigarettes in enormous quantities and
at or below cost. This campaign was
purely retaiiatory In Its nature and the
statistics of production show how in
tensely bitter the fight was, for over
1,0o0,o00,00o was added to the tax-paid
product In less than four years. The
low tax rate made the 25-eent packages
possible.
The campaign of retaliation which
went on between 1894 and 1897 pro-
duced marked results. 1t cuts big
holes in the profits of the manufae-
turers and sent the statistics of pros
duction up to the 4,153, 252, 40 mark in
the year last mentioned. The public
conscience was SO aroused that the
sessions of every state legislature
found willing advocates of anticiga-
rette laws. Some kind of a measure
for the repression of the sale and use
of cigarettes had been passed in every
state of the union, it is believed, Yet
SO long as the tax remained at 50 cents
per 1000 these laws were of little effect
In curtailing productions.
Within the next year competition
was somewhat lessened, but the in
crease of the tax from so cents to one
dollar per 1000 has much more to do
with checking further growth than all
other factors combined. The increase
took effect July "a, 1897, and with It a
new classification separating the pa
per-covered cigarette from the alto
bacco variety and calling the latter lit
tie cigars.
Within the last three years, 1,47B,-
629,O9S cigarettes have been clipped
from the record and the repre- ssive
laws and ordinances are scarcely more
stringent than they were in 1898. This
means, says the Tobacco journal,
either that an equivalent Of at least
100000 smokers have ceased to use pa
per cigarettes or larger number are
more moderate in their use.