Norwich bulletin., 1915-05-04

through the mountains, calling on farmers, selling them their supplies for a year, taking in exchange for this tobacco money or farm produce. The experience I gained in manufacturing tobacco and selling the output of the factory to actual consumers has been and is to-day, valuable in the conduct of this business.
 Experimenting Tn Advertising.
 'In 1872 I felt the need of moro thorough business education and gave up this work to take a course at a business college. In 1873 I began the manufacture of tobacco in a log cabin factory sixty miles from a railroad in Patrick County, Virginia, with a cap ital of $2,700. The first year in bus mess I manufactured 10000 pounds, the next year So,0o0 pounds and then sold my brands and trademarks to my partners, and moved to Winston Salem for the benefit of railroad facil- ities, and on account of this town be- ing located in the center of the belt in which the finest tobacco in the world is grown.
 'T erected here a plant that cost s2400 and began business with a capi- tai of $7500, taking in a partner, whom l bought out two years later. We manufactured. the first year 150,000 pounds. which was the capacity of the
 
 other year, this factory was built on top, bottom and additions made to each end, until the business was in- creased to 100000 pounds, having taken eighteen years to secure this volume.
 Tn 1892 the business amounted to 1,O85,929 pounds; in 1893 the business amounted to 1,006, 101 pounds. Seeing that my business had lost over the previous year and having had ac- cumulated more capital than was necessary to run the business, I de- cided to experiment in advertising It was really my first experience and L have found it profitable ever since.
 Big Returns from Advertising.
 'I spent about s4OOO in 1894 and se- cured an increase to 1,215,328 pounds. Seeing that the profits on the increase made more than reimbursed me for the money invested I was influenced to make an appropriation for the next year of S40,o00 and erect building with a capacity of ten times the bus mess that was being done at that time. The $40,00O expenditure in creased the business that year to 2,126,763 pounds.
 '"The sixth year this factory was overworked, the output representing 11,38e,822 pounds. Since that time the appropriation for advertising has been increased year after year proportion ately with the increase in business"
 Rr. Reynolds is a firm believer in surrounding himself with able Eeuten- ants. As early as 1888 he effected an arrangement with some of his en- ployes, whereby they would share in the profits of the business. In 1893 a company was formed and incorpor- ated. The percentage of profits that employees were receiving represented the percentage of stock they secured in A same employees are engaged in this business to-day.
 Newspapers the Standard. Newspapers and magazines have constituted the backbone of all our advertising" continued Mir. Reynolds. q believe that a manufacturer who has good product with which he can make a popular appeal, and will tell the truth about it in the daily news papers, backed with a good selling or ganization, will make an unqualified success. I have had ample experi- ence with this form of advertising to prove, beyond any doubt, that news papers are, unquestionably the stand ard form of advertising.
 This business is international in its scope. We, therefore, have passed the stage on several brands as far as To- cal advertising is concerned Hence, in connection with newspaper adver- Using, we use national publications. In establishing brands we cover the country section by section, relying on newspapers for our main advertising support.
 When you consider the number of newspapers that daily go into the mil lions of homes and how dependent we all are upon them for the worlds news, it would be hard to depreciate their value as an advertising medium After all, it's a simple matter of man ufacturing a good article-and letting the people know the truth about it.
 No Retrenchnent Owing to War.
 "Yes, newspapers are good adver- Using mediums, or this company would have found it out before it began in vesting hundreds of thousands of dol lars in their columns annually.
 "This company thought enough of advertising as a selling medium not to retrench on expenses in this division of the business when the European war broke out. As a matter of fact, more money was appropriated to ad- vertising than we would have other wise expended. As result, we are doing the largest business in our his tory.
 We conduct our business conserva- lively, having no money to throw away in any direction But this conn pany never hesitates to back its bus mess judgment, depression or no de- pression. If we waited for good times to roll around to get business, there would be mighty little incentive for work. The time to work is all the time. And the time to pull that extra spurt that every man has stored away is in slack times. We meet conditions, and overcome them.
 'sAs matter of fact, business throughout the entire land is improv- ing; very much faster than the pessi- mists dare to admit"
 Notable Examples of Success.
 Returning to the subject of adver- Using, MT. Reynolds said: Probably the best example in this history of ad- vertising is Prince Albert pipe and cigarette tobacco. Six years ago it was a new brand. Real and true to- bacco quality behind every printed word has made Prince Albert the largest selling brand of smoking to- bacco in the world! It is to-day sold in every civilized country.
 Camel Cigarettes is another exam pie. Less than a year ago we intro duced CamelS to the public and through advertising, backed by un- questioned quality. are now selling in