Norwich bulletin., 1916-12-18
CIGARS ARE GOING UP
Not in Smoke Only, But in Prie- Soaring Cost of Produetion Makes Advance lmperafive.

Like everything else, the prices for cigars are going up and one local to- bacco manufacturer says that the ad- vance has been made from about $2 to $3 per thousand.
 This is the first time in the his tory of this country, with the possible exception of the Civil War period, re- tail prices of cigars are going up.
 That cigar smokers have enjoyed a half century of respite from price fluctuation is not because the cost of production remained stationary during all these years. Operating expenses and the prices of raw materials have gone up and down, mostly up, in the cigar business. But there are two things which have tended to keep the retail prices of cigars uniform; first because of the fixed habit of paying a nickel, siX-for-a-Quarter, three-for- a. quarter, ten cents straight, and so on up, for cigars, without any intermedi- ate prices; and, second, because to- bacco is generally classified as a lux ury and not a necessity.
 z These two circumstances have made both manufacturers and cigar store keepers 1oath to disturb the equanam- ity of the smoker during all these years, even though there have been many occasions when the cigar man. ufacturing trade generally has found it's yearly balance to be on the wrong side, of the ledger.
 As far back as ten years ago the profit in cigar manufacturing had been reduced to such an extent that only the most sagacious operators found the business profitable. These conditions continued progressively, and when the European war began two and one-haf years ago, the sit nation became even more acute.
 It is true that the great war has not materially increased the expor- tation of either Cuban or American leaf tobacco to Europe, but 1t has ad- vanced the cost of virtually every ele- ment entering into cigar manufactur- ing.
 Increased activity in other indus growing districts scarce, and the price of labor unpreceaently high The woden cases in which domes- tic tobacco is packed, the cheese 10th under which shadegrown to- bacco is grown. fertilizers necessary to the soil, implements used in cul- tivation, etc., all have advanced. And in Cuba the great boom in sugar has diverted agriculturalists to that in- dustry and created shortage of good Havana leaf.
 The result is that all kinds of leaf tobacco used for cigar purposes in this country have gone skyward.
 Cigar manufacturers, therefore, are paying more for leaf tobacco than ever before in the history of the industry, and in addition to this, the price of cigar boxes, labels, workmanship and al lthe other details of operating have increased tremendously.
 The upshot of it is that, while even before the war began a large propor- ton of manufacturers were, at the best, just about breaking even on their in- vestment, now they find themselves actually and almost without exception playing a losing game.
 The ultimate consequence Is that without any concerted or organized movement cigar manufacturers every where are either advancing prices on their cigars outright or are reducing the size of the various brands and shapes they make.
 formative, namely: to change the com position of the cigar and by using cheaper and inferior tobacco to reduce the cost of production. The better class of manufacturers, however, has refused absolutely to consider such a tablishing their brands and maintain ing them at a uniform quality, even in the face of many difficulties, they pro- pose to uphold and continue the quail ity of their product.
 It is recognized by manufacturers that the retailer cannot be expected to stand the increase. Owing to severe competition and high rentals the thousands of, retailers throughout the country for a long time have been find ing it very difficult to make ends meet. Operating. as they are ,on a precari- ously narrow margin of profit, they could scarcely survive if the advance in cost were to be taken out of their small earnings
 Thes increase, therefore, wether in the form of an outright raise in price or by making smaller cigars, must be paid for by the smoker.