The Washington times., 1930-08-18
TOBACCO AIDED
BY CIGARETTE
INCREASES

An output OF American cigar
cites this year which will sur.
pass last years record total Of
127, ,40O, 100000, despite worldwide
business depression, is indicated
in the sixth annual world survey
Of the tobacco industry just com.
pleted by Chas. D. Barney & Co.,
members of the New York and
Philadelphia Stock Exchanges and
the Chicago Board of Trade. That
the cigarette is steadily gaining
ground at the expense Of the
cigar, pipe and other forms Of
tobacco Is another conclusion
reached by the analysis.
Evidence Of the remarkable
growth Of the cigarette business
as contrasted with the decline in
other branches of the tobacco in
dustry, is strikingly illustrated in
the taxes paid to the Federal
Government. The 1929 increase
of more than $40, 900, 900 in cigar.
ette revenues over 1923 was suffi.
cient to offset the decrease in
revenue from other tobacco
sources and to produce an in
crease of $37,994,502 in total to-
bacco revenue for the year. The
total contribution of the tobacco
industry to the Government last
year was $449,O5S,963. In 1922
the tobacco tax brought in $270,.
100000.
In earnings last year, the four
largest tobacco manufacturing
companies in this country, each
OF which features a popular
cigarette, all showed gains over
The r. J. Reynolds Tobacco
Company continues to maintain
its position as the largest dis
tributor to it's stockholders, hav-
ing disbursed $25, 500, 900 in 1929,
practically the same as in 1928.
The American Tobacco Company
increased it's dividend payments
from $18,785,154 in 1928 to $24,-
253,518 in 1929, and Liggett &
Myers remained at the same fig
ure as in 1928. Last year, ac-
cording to the survey, the Loril-
lard Company again passed its
dividend pending the further de-
velopment of its markets for
cigarettes.
While the United States contin.
ues to lead the world as an eX-
porter of tobacco the largest i'm
porting nations are Great Brit
ain, Germany, France, and China.
Exports of these countries showed
general increases with the excep-
tion Of China, whose entire COM
1nercial structure has been dis
rupted by internal strife. Last
year 4,841, ,102 900 American cigar
cites, valued at $8,427 900, were
exported to China against 1854
$4,000 cigarettes valued at $14,-
989, 9,564, exported in 1928. In the
face of this decrease of a. per
cent in cigarette exports to China,
the record figures established by
American production and world
wide consumption in 1929, con-
firm the dominating position
which the blended cigarette has
attained in the market Of the
world.
Cigars Decrease
Cigar production, despite radi-
cal improvements in manufactur-
ing and merchandising, did not
maintain previous levels. OF the
five classes of cigars, only those
referred to as class A, which re-
tail at more than S cents each,
showed an increase in production
last year over 1928, the figures
being $500, 100000 in 1929 against
$500, 100000 the previous year.
The total domestic cigar prod uc-
ton was $500, 200, 900 in 1929, an
increase of 100,000,000 over 1928,
which indicates the decline in
other classes Of cigars. The con-
tinued concentration of cigar pro-
duction in a steadily decreasing
number of factories marks a con-
tinuation of the trend toward
quantity production. A recent de-
velopment noted in the cigar busl-
ness is the highly specialized ma
chinery not only for making the
cigars but also for banding, wrap
ping and boxing them and for
grading the tobacco.
The 1929 figures for smoking
and chewing tobaccoS are not yet
available, but it may be expected,
according to the survey, that
both will show decreases. In
1929 there were produced 337 ,70O,-
900 pounds of manufactured to-
bacco compared with 343 ,000, 900
pounds in 1928.
Outlook Good
Regarding the outlook for 1880
the survey says:
Despite the general situation
prevailing throughout the cOun-
try, it appears likely that the
year 1880 will maintain the un.
broken record of increased
earnings among the principal
cigarette companies. In addi-
tiOn to q slightly lowered cost
of raw material, there appears
to be every indication that the
large cigarette companies will
have the benefit of present
wholesale price of S6.4O per
thousand throughout the IL
months, and it may reasonably
be expected that the earnings
of the Big Three will in each
case surpaSs their respective
performance of last year.
GTt In mt nOSSihle this wear