The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1915-05-22
REYNOLDS, TOBACCO MAN.
believes IN Advertising
He Has Had a Remarkable Career in
the Industry and Tells in An In
teresting Way How His Business
Grew

From boyhood days, as a tobacco fac.
tory laborer to president and active di-
rector of one of the worlds largest
tobacco industries, tells the snapshot
life story of Richard j. Reynolds, of
Winston Salem, n c.
Mr. Reynolds believes in ADVERTISING
When it is known that in 1914 the
r. j. Reynolds Tobacco Company's out
put amounted to many millions Of
pounds of tobacco, it isn't difficult to
understand just what two or three per
cent. in advertising means in dollars
and cents.
In 1894 Mr.. Reynolds first realized
that, properly applied and backed by
tobacco worth all he asked for it, ad,
vertising was profitable. He invested
| $4,000 that year and saw his business
grow over 100000 pounds. Next year
he spent FIVE times as much-and his
| business doubled!
| From that period to the present the
| R. j. Reynolds Tobacco Company has
rushed forward with sincere belief in
the quality of its brands-and firm CON
fidence in marketing them with intelli-
gently conceived and applied newspaper
and magazine advertising.
| Mr.. Reynolds talks interestingly.
81 started my career in growing and
manufacturing tobacco when l was a
boy" said the founder, as he chatted
in the big executive building at
Winston-Saem few weeks ago, 'serv-
ing my time as a laborer in tobacco
factory. At the age of eighteen l was
promoted to superintendent of this fac
tory. In those days tobacco factories
only ran four months in the year and
the other eight months l was engaged
as a tobacco salesman.
"ln 1872 felt the need of more
thorough business education and gave
up this work to take a course at bust
ness college. In 1873 | began the man
ufacture of tobacco in log cabin fac.
tory sixty miles from a railroad in
Patrick county, Virginia, with capital
of $2700. The first year in business I
manufactured 10000 pounds, the next
year 10000 pounds and then sold my
brands and trade marks to my partners,
and moved to Winston Salem for the
benefit of railroad facilities, and on ac.
count of this town being located in the
center of the belt in which the finest
tobacco in the world is grown.
II erected here a plant that cost
S240O and began business with a cap
ital of $500, taking in partner,
whom | bought out two years later.
We manufactured the first year $50 900
pounds, which was the capacity of the
/ plant. From then on, about every other
year, this factory was built on top.
/. bottom and additions made to each end.
until the. business was increased to
l,000,000 pounds, having taken
eighteen years to secure this volume.
In 1892 the business amounted to
,OS5,929 pounds; in 1893 the busi-
ness 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 neces.
sary to run the business, | decided t0
experiment in advertising. It was really
my first experience and have found IL
Iprofitable ever since. n
4 II spent about $4,000 in 1894 and
secured an increase to 1,215,32S
\ pounds, Seeing that the profits on the
increase | made more than reimbursed
me Tor the money invested, | was in.
nuenced to make an appropriation for
the next year of $4,000 and erect a
building with capacity of ten times
tne business that was being done at that
time. The $4,000 expenditure m.
creased the business that year to
| 2,126,763 pounds
The sixth year this factory was
overworked, the output representing
l1,3S9,S22 pounds. Since that time
the appropriation for advertising has
been increased year after year propor.
tlonately with the increase in business
Probably the best example in this
history of advertising is Prince Albert
pipe and cigarette tobacco. Six wears
ago 1t was new brand. Real and true
tobacco quality behind every printed
word has made Prince Albert the
largest selling brand of smoking To-.
bacco in the world 1t is TO-DAY sold
IN every civilized country.
camel Cigarettes is another ex.
ample. Less than year ago we intro.
duced Camels to the public, and through
advertising, backed by unquestioned
quality, are now selling IN national
way. This company has several other
brands that are by far the largest
sellers in their respective markets"