Daily capital journal. (Salem, Oregon) 1903-1919, 1915-05-22
NEWSPAPERS THE STAND
ARD FORM OF ADVERTISING

was selling and never ask price that
yield more than fair profit
SIN the section in which / was rails
ed at that time railroads were few and
far between, l., therefore, loaded a
wagon with tobacco and would drive
through the mountains calling on farm
ers. selling them their supplies for
year, taking in exchange for this to-
bacco money or farm produce. The ex-
perience l gained in manufacturing to-
bacco 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
Gin 1872 ! felt the need of more
thorough business education and gave
up this work to take course at a bust
ness college. In 1873 1 began the manu-
facture of tobacco in log cabin fac
tory sixty miles from railroad in Pat
rick county, Virginia, with a capital of
$1,000 The first year in business |
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 ac.
count of this town being located in the
center of the belt in which the finest
| tobacco in the world is grown.
~ erected here plant that cost
$2400 and began business with capi-
tai of $500, taking in a partner, whom
/ bought out two years later. We man
ufactured the first year 100000 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 100000
pounds having taken eighteen years to
secure this volume.
"In 1892 the business amounted to
1,0S5,929 pounds; in 1898 the business
amounted to l,006,l0 pounds. Seeing
that my business had lost over the
previous year and having had accumu-
lated more capital than was necessary
to run the business, decided to expert
ment in advertising. 1t was really my
first experience and | have found it
profitable ever since.
Big Returns from Advertising.
al spent about $4,000 in 1894 and Sc
cured an increase to l,2l5, 23S pounds.
Seeing that the profits on the increase
| made more than reimbursed me for
the money invested, | was influenced
to make an appropriation for the next
year of $4,000 and erect u building
with capacity of ten times the bust
ness that was being done at that time.
The 100000 expenditure increased the
business that year to 2,l26,763 pounds.
"The sixth year this factory was
oyerworkcd, the output representing
ll,3S0,S22 pounds, Since that time the
appropriation for advertising has been
increased year after year proportion
ately with the increase in business. "
Mr., Reynolds is n firm believer in sur
rounding himself with able lieutenants.
As early as 1888 he effected an ar
rangement with some of his employees,
whereby they would share in the pro.
fits Of the business. In 1893 com
pany was formed and incorporated,
The percentage of profits that employees
were receiving represented the percent.
nge Of stock they secured in the com
pany. A number of the same employees
are engaged in this business today.
Newspapers the Standard,
"Newspapers and magazines have
constituted the backbone of all our ad.
yertising," continued Mr., Reynolds.
II believe that manufacturer who
has good product with which he can
make popular appeal and will tell
the truth about it in the daily papers,
backed with good selling organization,
will make an unqualified success.
have had ample experience with this
form of advertising to prove, beyond
any doubt, that newspapers are, un.
questionably, the standard form of ad.
vertising,
"This business is international in its
scope. We, therefore, have passed the
stage on several brands as far as local
advertising is concerned. Hence, in
connection with newspapT advertising
we use national publications, In cstab
- fishing brands we cover the country
t section by section, relying on newspa
/ pcrs for our main advertising support
Q "When we consider the number OF
+ newspapers that daily 60 into the mil
lions of homes and how dependent W,
all are upon them for the world Is newi
l it would be hard to deprcciate thei
G value AS an advertising medium. Afte
3 all, It's n simple matter of maunfuc
,, turing good article--and letting tn,
}. people know the truth about it.
IS No Retrenchment Owing to War.
It f" Yes, newspapers are good advertis
l. ing mediums, or this company woul,
e. have found II out before it began in
Is vesting hundreds Of thousands of dol
s. lars in their columns annually.
A. "Ths company thought enough o
G. advertising as u selling medium not I
retrench on expenses in this division
A. of the business when the European wa
9 broke out. As matter of fact, NOR
i. money was appropriated to advertisiu
A. than we would have otherwise eN
n pended. AS n result, we are doing tn
p largest business in our history.
r owe conduct our business conserve
t. lively, having no money to throw ava
y in any direction, But the compan
" never hesitOtes to back its bushes
judgment, depression or no depression
rs II we waited for good times to ro
is. around to get business, there would b
nd mighty little incentive for work. TIL
n time to work is all the time. And tn
I'd time to pull that extra spurt that ever
d. mau has stored away is in slack time
o, We meet conditions, and oyercom
o. them.