Evening star., 1926-06-03
TOBACCO INDUSTRY
HAVING BIG YEAR
Profits for First Half of 1926
Bid Fair to Eclipse All
Former Records.
RY j. {. ROYI.E.
Special Dispatch to The star.

#special Dispatch TO The star.
NEW YORK. June 3.--The smoke
at billions of cigarettes is lifting the
profits of the tobacco manufac acturers
after II AS it slowly rises. Unless con
sumption drops off startlinly during
the remainder of this month. the
profits for the first half of 1925 will
ne the largest for any similar period
in history. The tobacco manufacture
hnK industry had it's most prosperous
wear in 1925. and So far there has heen
h marked improvement over the simi-
lar period of last year.
During the first three months OF
1928 sales of cigarettes were ll.S9 per
rent heavier than for the correspond
ting period wear ago. In April the
Itax paid Withdrawals OF cigarettes
struck the usual seasonal lull. but
stin were far ahead of April, 1925,
totalinE S.973 100000, as compared
With 6,o4s. .0O0, 900. In May the out
put Of cigarettes again went over
II ,N0N. 900 900, and there is every indi-
cation that sales this month will be
equally heavy.
Cigar Trade Improving.
The cigar branch of the industry
also is improving. with special activ-
IN
paid withdrawals in the last two
months have been far above those
for April and May. 1928. The reduc-
&tion in revenue taxes on cigars has
given impetus to that end of the bust
nese and this has been increased by
slightly lower leaf tobacco costs.
There were 12.301 lis cigars manufac-
tured In the Berks Lebanon district
In the last month, a gain Of s15,as2
over MAY. 1925,
In some instances manufacturers
have passed on the reduction In rev
enue taxes to consumers. In other
instances workers have made insist
ent demands that this differential he
added to their wages. In general
however prices have been fairly
steady since the margin of proht
in the cheaper grades even with the
advantages cited is none to large
for safety.
The manufacture of smoking and
chewing tobacco and snuff has shown
gains ranging from 21a to per cent
as compared with last year. All
kinds of tobacco products have felt
the effect Of the liberal advertising
campaigns which have been carried
on BY the manufacturers this year,
XCixarette manufacturers recently
have been advertising their brands
more extensively in the daily news
pa pere than ever before, and a good
part Of the increase In sales is di
rectlv attributable to this cause. ac-
cording to men closely allied with the
tobacco industry.
THE position Of the tobacco grower
is by no means so bright As that of
the manufacturer. In many sections
Of the country heavy stocks of old
tobacco still are piled up in ware
houses. Prices obtained by farmers
have not proved satisfactory in many
instances. Internal dissentions have
shaken some Of the growers organi-
zations. However, the situation is
slowly but surely showing improve
ment.
No Reduction Expected.
Consumption is taking huge bites
ont Of reserve stocks. The efforts Of
bankers, flnanciers and far.sighted
growers to get farmers to restrict
tobacco acreage are beginning to
have some effect. The Virginia
rassers Of bright leaf are In a fairly
advantageous position and so are
those whe have opened up the IN
dustry in south Georgia In late years.
In Kentucky, Tennessee and Ohio
fields, however. there have seldom
kbeen go many young tobacco plants
under cloth a. this Spring. More
over. this is the last year Of co-opera
/ tive marketing control In that section
and II is a question what kind Of
marketing and growing policy will be
followed in 1927.
Manufacturers Of cigarettes scout
the idea of any general price reduc-
ton. Reductions made in some cities
by certain stores. they say, are purely
local in effect and presage no price
war They add no reduction has been
made in the list prices OF cigarettes
and none is being considered.