The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-01-28
RETAIL PRICES Of
CIGARS GOING UP
Operating Expenses and High Prices
of Raw Materials
Arc Cause.

For the first time in the history of
this country. with the possible excep-
ton Of the Civil War period, retail
prices Of cigars are goIne up
That cigar smokers have er joyed a
half century of respite from price fiuc-
tuation is not because the cost Of pro-
dution has remained stationary dur
ing all these years. Operating expenses
and the prices Of raw materials have
gone up and down, mostly up. in the
cigar business, the same as in any
other 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
nickel. siN-for-a quarter, three-tor-
aquarter. ten cents straight, and so
on up. for cigars: without any inter
mediate prices, and. second. because
tobacco is generally classified as a lux
ury and not a necessity.
These two circumstances have made
both manufacturers and cigar store
keepers loath To disturb the equanim-
ity of the smoker during all these
years. even though there have been
many occasions when the cigar manu-
featuring trade generally has found
its yearly balance 90 he on the wrong
side of the ledger.
profit IN cigar manufacturing had been
reduced To such an extent that only
the most sagaCiouz operators found
the business profitable. These condi-
tons continued progressively and
when the European war began, two
and one-half years ago. the situation
became even more acute.
1t Is true that the great war has
not materially increased the expurta-
~ - 4 tpa,t ia.f
tobacco To Europe but it has advanced
the cost of virtually every cement en-
ierine into cigar manufacturing,
increased activity in other industries
has made labor in The tobacco grow
ing districts scarce, and the price Of
labor unprecedentedly high. The wood
en- cases in which domestic tobacco *
packed the cheesecloth under which
shadegrown tobacco is grown. fertiliz-
ers necessary to the soil, implements
used in cultivation, etc, all have ad-
vanced And in Cuba the great boom
In sugar has diverted agriculturists TO
the industry and created a 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
pefOrC IN the history vi the INDUSTRY,
and in addition to this, the price of
cigar boxes, labels. workmanship and
all other details of operating have in
creased tremendously.
The upshot OF 1t is that, while even
before the war began large proper
ton of the manufacturers were at the
best, Just about breaking even on heir
investment. now they fini themselves
actually and almost without exception
playing a losing game.
The ultimate consequence 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 that they make.
OF course. there was another al
tentative. namely. to change the COM
position OF the cigar ans by usin !.
cheaper and inferior tobacco to reduce
the cost OF production The better
class of manufacturers, however, has
refused absolutely to consider such Il
recourse, Having spent wears in
establishing their brands and main
tanning them at uniform quality,
even in the face of many difficulties.
they propose to uphold and continue
the quality of their product
1t is recognized by manufacturers
tnat the retalleF cannot be expected
to stand the Increase. Owing 70 Sc
we're competition and high rentals the
thousands of retailers throughout the
country for a long time have been fin,l4
ing it very difficult 10 make ends iaeet.
Operating. as they are, o0 a lreCari-
ously narrow margin Of profit, they
could scarcely survive If tho advance
in cost were to be taken out of their
small earnings.
The increase, therefore, whether in