The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-01-12
BIG PROFITS IN
TOBACCO BUSINESS
MANUFACTURERS TODAY OFFER
AN EXAMPLE OF uNPRECE-
DENIED PROSPERITY.
REVIEW OF THE YEAR
ALL THE MANUFACTURER LOOK
ING TO CIGARETTE BUSINESS
FOR THEIR BIG INCREASE
IN TRADE
REVIEW OF THE YEAR

In giving a review OF industrial
conditions as they exist today, the to-
bacco companies offer an example of
unprecedented prosperity. All OF the
concerns that are now handling the
brands of the old American tobacco
combination are doing 81 business in
these various brands anywhere from
iS to SO per cent over the correspond
ing period last year. and the brands
that have been put on the market
during the last twelve months. al
most without exception are proving
, heavy sellers
All the tobacco men, that Is the
manufacturers, are looking to the va
rious cigarette brands for their big
increases IN business Cigarette sales
have shown the biggest increase over
last year, and the four large COM
panies that formerly made up the
American Tobacco company proper.
are all enjoying the benefit OF this i'm
proyement. The four companies are
the new American Tobacco company,
the Liggett & Myers company. z. Lo.
riiiard company, and the r. j. Rey-
nolds company.
The new American Tobacco COM
pany will probably show for the full
year about so per cent on It's common
stock fSfter preferred requirements
have been met. The American Tobac-
CO company has put out two OF the
best selling OF the new brands of Gig
arettes and these have contributed
materially TO the big earnings that IL
has been possible to show. The COM
pany has stuck to a 10 per cent div
idend rate on Its common stock for
the entire year, but this was forcasted
by officials soon after the disintegra-
re hl ~ ~
worked out. Present earnings war
rant an increase and according to
present plans directors will take such
action early next year.
The Lorillard company, which con.
trolls some of the largest Turkish
cigarette brands. has already declared
an extra dividend on its common
stock. Earnings Of the company are
said to be IS per cent on the Junior
issue. Ti1# cofnTsxny- has Been IA Ii
particularly Fortunate position, ,rras
much as it has acquired four years
supply OF Turkish tobacco and con-
seGuently was not affected in any
way by the war troubles abroad. This
strong position rs regards its sup
ply lis said to have been one OF the
real reasons for directors voting TO
increase the dividend rate. While a
dividend OF per cent was voted at
the last meeting, the trade generally
has not come to regard the stock
upon a permanent 20 par cent per
annum basis. although earnings now
would seem to warrant such a pay.
ment. II should be recalled that the
directors closed the resolution Tor a
Ia per cent regular dividend and
ala per cent extra. with the state
ment--"thus making 10 per cent for
the entire year"
The Liggett & Myers company has
made Its initial dividend declaration
of per cent. one-half of three per
cent above the Initial disbursement
of any Of the other new concerns.
This company now controls the two
largest selling cigarette brands In the
world In the Fatima and Piedmont.
ord Is in a strong position in its other
forms of tobacco--smoking and chew
ing. So heavy have been ITS sale
during tho year that II has been
found necessary to build new
cigarette factory here In New York.
. The company Is well able to demand
rate. however. despite heavy oniays
for Improvement and increases in
plant capacity
The splitting up OF the American
Tobacco company did not in1urs the
arning possibilities OF the r. J. Rey-
nolds Tobacco company in any way.
,lthaugh a subsidiary of the An,eri.
can Tobacco company the Reynolds
concern was never run from Ill
I fifth Avenue. That was because Mr..
Reynolds and the others who or
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