The Waterbury Democrat., 1944-08-21
Labor Urges OPATo
 Save Tobacco Firms
Unprecedented LabOr.Nanagement Appeal Made iOT
 Price Relief as Seven Companies Fail

price division, opA; E. Y. Raelana, chief of the tobacco section. oPA; T. M. oFnburn. secretary-efea9uree of the union label trades eeparts ment. AFGs; s. 6. Blanc, viee-prezls dent of the Tobacco Workers fnter- national union; Leo Lucas. liAlSon olilcer between the AEk and OPA, Thomas r. Flanagan. president cg the Penn Tobacco company and bg Harrison M. Robertson, counsel for the Brown G Williamson Tobacco CO.
 The text Of the T. W. [. .. ruse. lution follows.
 WHEREAS. six smaller tobacco and cigarette companies have gone out Of business since January 1. i9as, and
 WHEREAS, the Axton- Fisher To. bacco company, Of Louisville, Ky., whose founder was a firm friend og Union Labor. has iSO0 eFnployes. members of the Tobacco Workers' International Union, operating un. der a closed shop and the check off, a company which has Q long record Of the cooperation with and assistance to the Union Labor move. ment. and aid and assistance in the Union label, and
 WHEREAS, the Axton-Fssher com. pany has just announced that it will liquidate it's business and sell its brands and assets, and
 WHEREAS. it is evident that, and there is ample testimony to prove that the cause of the difficulties of these smaller companies is the fact that the OfIice of Price Administra- ton has been unable to hold down the prices of loaf tobacco. and such prices are still rising, and acc cording to the public prints, will show a further rise for the l0sa blue-cured and burley tobacco crops. comprising the large maloritS of the tobacco used in this country. Nnd
 WHEREAS. these increases Gn leaf tobacco prices have hr>aghS the average price per pound up from i7 cents in ies0 to S5 cents ia lDaa, while at the same time there s ceiling on the prices which tobacco manufacturers may charge for their products so that the manufacturers are squeezed between low ceiling prices for products and high leaf prices, so operating margins Of the tobacco companies for labor, ma- terials and merchandising are re. duced to impracticable levels, with the result that evidence has been presented to show that many Of the smaller companies are nov operating an the red. while the few large eig. arctic companies are able to main- tain their earnings because they are getting the benefit Of enormous increases in the consumption Of cig~ arettes. and the purchases Of cig- arettes from them by United States Army and Navy, and
 WHEREAS, we understand that many more Of the forty smaller to- baeco and cigarette companies. most of which have always been loyal friend Of Union labor must SO out Of business unless there is some relief in ceiling prices for tobacco f products, and
 WHEREAS. the liquidation Of these smaller companies throws larger amounts of business into the hands of the few large tobacco com panies, thus leading to monopoly, and to undemocratic control of the tobacco industry in the hands Of a few companies.
 THEREFORE. BE TT RESOLVED that the Tobacco Workers InterIsas tional Union urgently requests the office Of Price Administration to bring prompt and effective relief 10 the tobacco industry by fixing ceiling prices at Q point which gil allow the smaller companies, sne the companies not benefitting by the great increase in the consumption of cigarettes. and the purchase ol cigarettes by the United States Army and Navy, a sufficient margin above Leaf costs to pay adequate wages, to process and sell theiy goods 10 maintain the normal trade practices. and 10 preserve, so far as possible. the present number Of manufacturers in the industry.
 Tobacco Workers International
 Union
 By ls) Charles Watkins.
 Vice President