The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-05-06

men. Nearly all OF these fellows were
glib takers and their influence was
not the best for boy. My father
realizing this, told me the day that l
started out to sell tobacco that a man
who would lie for dollar would steal
dollar. advising me always. under
all conditions, to tell the truth about
the tobacco I was selling and never
ask a price that would yield more
than fair profit.
ssIn the section in which I was
raised at that time railroads were few
and far between. I, therefore, loaded
wagon with tobacco and would
drive 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 l gained in manufacturing
tobacco and selling the output of the
factory to actual consumers has been
and Is today. valuable in the conduct
of this business.
Experimenting in Advertising.
In 1872 I felt the need of more
thorough business education and gave
tup this work to take a course at a
business college. In 1873 l began the
manufacture of tobacco in a log cabin
factory sixty miles from railroad in
Patrick county, Virginia, with CAPT.
tai of $1,000. The first year in bust
ness l manufactured 10000 pounds.
the next year 10000 pounds and then
sold my brands and trademarks to
my partners, and moved to Winston
Salem for the benefit of railroad
facilities. and on account of this town
being located in the center of the belt
in which the finest tobacco in the
world is grown.
4 erected here a plant that cost
$4,000 and began business with a CAPT.
tai of $500, taking in a partner,
whom ] bought out two years later.
We manufactured the first year 150,-
600 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 in
creased to 100000 pounds, having
taken eighteen years to secure this
volume.
In 1892 the business amounted to
/ .oS5, 929 pounds: in 1893 the business
amounted to 1,0O6,10 pounds. Seeing
that my business had lost over the
previous year and having had accu-
INFLATED more capital than was neces-
sary to run the business, I decided to
experiment in advertising. 1t was
really my first experience and | have
found it profitable ever since.
Bio Returns from Advertising.
81 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 for the money invested, ] was in
1uenced to make an appropriation
for the next year of $4,000 and erect
a building with capacity of ten
times the business that was being
done at that time. The $4,000 ex-
penditure increased the business that
year to s2.12s,763 pounds.
''The sixth year this factory was
oyerworked, the output representing
IL .3S9,S22 pounds Since that time
/ the appropriation for advertising has
been increased year after year pro
portionately with the increase in bust
ness"
Mr.. Reynolds is a firm believer in
surrounding himself with able lieuten-
ants. AS early as 1888 he effecteS an
! arrangement with some Of his en-
ployes, whereby they would share In
the profits of the business. In 1898
| company was formed and incorpor.
ated.. The percentage of profits tha-
employees were receiving represented
! the peTcentage of stock they secured
| in the company A number of the
same employees are engaged in this
business today.
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