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^V M ^» « — Raleigh The E. S. C. Quarterly VOLUME 18, NO. 1-2 WINTER-SPRING, 1960 Employment Security Commission of North Carolina Cover Legend Page Two Index On Page Eleven PAGE 2 THEE. S.C. QUARTERLY WINTER-SPRING, 1960 The E. S. C. Quarterly (Formerly The U.C.C. Quarterly) Vol. 18, No. 1-2 Winter-Spring, 1960 Issued at Raleigh, N. C. by the EMPLOYMENT SECURITY COMMISSION OF NORTH CAROLINA Commissioners: Mrs. Quentin Gregory, Halifax; Dr. Maurice Van Hecke, Chapel Hill; R. Dave Hall, Belmont; W. Benton Pipkin, Reidsville; Bruce E. Davis, Charlotte; Crayon C. Efird, Albemarle. State Advisory Council: Public representatives: James A. Bridger, Bladenboro, Chairman; Sherwood Roberson, Rob-ersonville; W. B. Horton, Yanceyville; Mrs. R. C. Lewel-lyn, Dobson, and Dr. J. W. Seabrook, Fayetteville; Em-ployer representatives: A. L. Tait, Lincolnton and G. Maurice Hill, Drexel; Employee representatives: Melvin Ward, Spencer, AFL and H. D. Lisk, Charlotte, CIO. HENRY E. KENDALL Chairman R. FULLER MARTIN Director Unemployment Insurance Division JOSEPH W. BEACH Director North Carolina State Employment Service Division TED DAVIS Editor Public Information Officer, Member PRSA MARTHA JACKSON Associate Editor Sent free upon request to responsible individuals, agencies, organizations and libraries. Address: E.S.C. Informational Service, P. O. Box 589, Raleigh, N. C. INDEX APPEARS ON PAGE 11 ABOUT THE COVER PICTURES Top, left, shows workers pulling tobacco plants from tobacco bed prior to transplanting them in the fields. These may be transplanted by hand or machines. Top, right,, in this hand are enough tobacco seed to furnish plants for four acres of tobacco. Center, left, worker holds up a perfect leaf of tobacco. This green tobacco is tied on sticks prior to being put in the barn for curing. Center, right, these trucks are moving the tobacco hogsheads (about 900 pounds of cured tobacco in each hogshead) to cigarette factories after redrying process. Lower, left, here is the interior of an auction warehouse and shows the shallow baskets of tobacco laid out in long rows marked with the owner's name and the certified weight of the tobacco in each basket. Lower, right, auctioneer, with upraised hand, chants the prices bid for tobacco. Buyers for tobacco companies move along with him examining the tobacco and bidding on each individual basket. SUMMER-FALL EDITION TO FEATURE FURNITURE INDUSTRY North Carolina's rank in the manufacture of furniture is at or near the top in the entire nation. The position would probably depend upon the classifications of furniture. The span of the furniture in this State runs from "com-petitive" pieces to the finest "name" suites to be had anywhere in the world. Tarheel manufacturers of furniture number in the hundreds and a story about each will appear in the next edition of THE QUARTERLY. Requests for copies of the "Furniture Edition" are now being accepted. The issue will probably be in great demand, so our supply of "extra copies" will be parceled out on a first-come-first-served basis. Should you be a subscriber, there is no need for you to request a copy as you will receive yours at the address to which your copy usually goes. CHAIRMAN'S COMMENTS Henry E. Kendall, Chairman Employment Security Commission Tobacco is the nation's oldest industry, with more than three million people engaged in producing, manufacturing) and distributing it. Last year some 65 million Americans! bought 436 billion cigarettes, 6.4 billion cigars, 74 millionl pounds of smoking tobacco, and 35 million pounds of snuff.j Featuring the tobacco industry in this edition of thtl QUARTERLY brings up-to-date the 1951 edition whicr| spotlighted the weed. North Carolina raises two-thirds of all the flue-cured tobacco grown in the world. More tobacccj products are made in North Carolina than in all the othei; states combined. With approximately the same number of acres of tobaccc being grown each year, only the yield per acre affects the State's position in its percentage compared with other sec tions of the world. There are 32,185 people employed in the tobacco industrj in North Carolina who are covered by unemployment insur ance and come under the Employment Security Law. Federal taxes on tobacco and tobacco products in a single year amount to more than $1.7 billions. Additional taxes col lected by State and municipal treasuries from tobacco sol< at retail total more than $700 millions. Ever since tobacco was first discovered to be a "mone: crop" it has gone a long way toward underwriting the cos of the government. The credit of the Continental Congres was supported by a loan on tobacco leaf. Benjamin Franklh helped obtain the loan of some 2 million livres from th French tobacco monopoly which was to be repaid by 5 millioi pounds of leaf tobacco. For many years the economy of North Carolina was de pendent upon the tobacco crop and textiles. A bad crop coul be felt by every citizen, and when combined with layoffs ii the textile industry could be devastating. In recent years the State has begun diversifying its indus try. Commercial vegetable crops have come to the forefron in farming, and today account for an amazing number o dollars for growers. Poultry raising has become popular an North Carolina is near the top in the production of broilers A recent survey shows that in the past nine years thi tobacco industry has put more than $314 millions in capita outlays into new manufacturing, processing and researc facilities. This was done to keep pace with consumer require ments and to provide better products. The industry is budgeting about $80 millions during 196C 61 for further expansion and improvement. In the use of tobacco, countries having the highest pe capita use in pounds are: U. S., 8.6; Canada, 7.2; Netherland 6.0; Belgium, 5.8; Australia, 5.5; Switzerland, 5.3; Denmarl 5.2; Ireland, 5.1; United Kingdom, 4.9; New Zealand, 4 West Germany, 3.9; and Norway, 3.0. Also in this issue you'll find stories of other industries i the State, our Business Machines Unit, an East Coast Far Pattern meeting, and other notes on activities of yo Employment Security Commission. VINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 3 I J. Reynolds, Largest In Industry . . . Still Continues To Grow And Expand R. J. Reynolds Tobacco Company, Vinston-Salem, already the largest in he industry in sales, continues to xpand. In the last three years alone, Reynolds' capital expenditures have totaled nearly $75,000,000 to ex-pand its facilities for the manufacture of cigarettes and the processing and storing of leaf to-ga j <MgpHta bacco. The company ^L ^^Bfflj estimates it will Bk Wlflra spend about $25,- Bk JftB 000, 000 more in 1960 gray for new plants and improvements. Vast Expansion This gigantic expansion program in-ludes: • A new cigarette factory, now being milt at Whitaker Park in Winston- Jalem at a cost of $30,000,000. Due for iccupancy in the spring of 1961, it will ncrease Reynolds' igarette manufac-uring capacity by !5%. • A new stem-ning and redrying )lant, together with 18 storage ware-louses with capaci-y for 260,000,000 >ounds of tobacco, at 3rook Cove, Stokes Uounty. This facility carter s now in operation. • A similar stemming and redrying )lant, with 24 storage warehouses hav-ng capacity for 130,000,000 pounds of tobacco, completed at Lexington, Ken-tucky. • A new aluminum foil rolling and converting plant, operating as Archer Aluminum, a division of R. J. Reynolds Tobacco Company. (An addition to this plant is now being built, in which Archer will be able to produce its own aluminum sheet from ingots.) • A new tobacco processing plant in downtown Winston-Salem. • A major expansion of the company's research facilities, adding 60,000 square feet of floor area. Brand Leadership In the highly competitive cigarette field, the Reynolds Tobacco Company has the triple distinction of producing: America's leading brand—CAMEL; the nation's most popular filter brand — WINSTON (introduced in 1954) ; and the eynolds Tobacco Company's 22-story office build-ig in downtown Winston-Salem is headquarters i>r the company's world-wide business. R. J. Reynold's products are shown above: Top,, chewing tobaccos, bag tobaccos, cigarettes, and pipe tobaccos. PAGE 4 THE E. S. C. QUARTERLY WINTER-SPRING, 1 96C country's favorite menthol-flavored brand —SALEM (introduced in 1956). Reynolds makes two other types of tobacco products and also has the dis-tinction of producing America's leading brand in each of those categories: smok-ing tobaccos—PRINCE ALBERT; chew-ing tobaccos—DAYS WORK. Some of the company's other principal brands are: CAVALIER Cigarettes; GEORGE WASHINGTON, CARTER HALL, STUD, and OUR ADVERTISER Smoking Tobaccos; and APPLE, BROWN'S MULE, and REYNOLDS' NATURAL LEAF Chewing Tobaccos. Reynolds' Archer Aluminum Division rolls, laminates, and otherwise processes aluminum foil for use by the company and for sale to others. It also produces some additional packaging materials used by the company. Its output of other items, including foil for use by florists, continues to grow. R. Company Statistics J. Reynolds Tobacco Company has more than 14,000 regular, full-time em-ployees. In addition, it provides seasonal employment for more than 3,000 other employees. The company's full-time employees have an average length of service of better than 14 years. Over 40% of them have been with the company for 15 years or longer; 19.1% have service records of 30 years or more. In 1959 Reynolds had net sales of $1,286,855,943 net earnings of $90,357,- 655. At the end of 1959 the company's assets totaled $853,351,560. Samples of florist foils produced by Archer Alum-inum, a division of R. J. Reynolds Tobacco Com-pany. Bowman Gray is chairman of the board. F. G. (Bill) Carter, former sales manager, is president. Haddon S. Kirk is chairman of the executive committee. Executive vice presidents are A. H. Gal-loway, former treasurer, and S. B. Hanes, Jr., former superintendent of leaf buying. Historical Beginnings The business of R. J. Reynolds Tobac-co Company was founded in the sprhn of 1875 by Richard Joshua Reynolds, m had been in a tobacco manufacturinf partnership with his father, in Virginia but decided to venture out on his ownil Putting his decision into action, hi traveled by horseback to Winston, Nort] Carolina, and bought a piece of land oi Chestnut Street. The factory he built o] that lot was a red frame structure whicl Reynold's new $30,000,000 cigarette factory at Whitaker Park, Winston-Salem, begins to take shop It will be completed in 1961, expanding the company's cigarette manufacturing capacity by 25<J "Old Joe", who was appearing with Ringling Brothers Circus in Winston-Salem, posed as the model for Camel Cigarette trademark. Expansion: Reynolds' new facilities at Brook Cove, include a stemming and redrying plant and storage warehouses, each with an area larger than that of a football field. WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 5 :overed less ground than a tennis court. Winston was then a community of onJy 500 people, and historic, neighboring Salem—where George Washington had ilept not one night but two—was still a dllage.) Small as the building was, its cost of !2,400, including a few crude pieces of squipment, loomed large to the 25-year- >ld owner. He had saved up $7,500 to mild the factory and launch his venture, rat he needed much of that money to ray the choice leaf he insisted on for his iroducts. Leaf-tobacco auction markets iperated on a "pay as you buy" basis, ust as today. Like the factory, E. J. Reynolds' work-ng force was at first small; he had only wo regular assistants and scarcely a lozen seasonal helpers. During the early rears of the business, chewing tobaccos vere the only products made. At the tart, a one-horse dray sufficed to cart he products to the depot for shipment. 3ecause mechanical means of redrying he leaf had not been invented, manu-acturing was necessarily limited to tbout six months a year. Quality Pays Soon the high quality of the Reynolds >roducts was winning repeat orders, and he growing demand made additions to he plant necessary. The thriving busi-less also created jobs for more em-doyees. To provide for the expansions, he youthful owner plowed most of his larnings back into the business. Special honors for the quality of its troducts came to the young company in 895: Reynolds received the highest iward on chewing tobaccos at the big ]otton States & International Exposition n Atlanta. That was also the year the ompany began to produce smoking obacco. Paced by the popularity of its chewing md smoking brands, the Reynolds To- >acco Company by the close of the cen-ury had built up a sizable industrial ilant. It consisted of seven buildings, imploying hundreds of people. Inventive levelopments had been such that the actories were able by then to operate he year around. In its present form R. J. Reynolds Pobacco Company was incorporated in "few Jersey. It was chartered there in 899, with initial capital of $2,100,000 md 13 stockholders. R. J. Reynolds was he first president and continued at the telm until his death, in 1918. Camels Introduced The company entered the cigarette ield in 1913, introducing the first nodern-type blended cigarette: CAMEL. That happened to be the same year Vinston and Salem officially became one ity.) While a machine had been invented s early as 1872 to speed the making f cigarettes, 40 years later cigarettes were still a quite minor part of the tobacco manufacturing industry com-pared with smoking and chewing to-baccos. With the coming of CAMELS, the tobacco habits of the nation were changed in just a few years, and the "cigarette era" really began. (To bring the picture up to date, 1957 was the first year in which over 400 billion cigarettes were sold in the United States. By 1959, sales had increased to about 455 billion. CAMEL has led all other brands for eleven straight years, according to Harry M. Wootten, well-known consultant to the industry.) All the products of the company are made in just one locality, Winston-Salem. Such centralization is rather unique in the tobacco industry. However, Reynolds finds this of value in maintaining the Reynolds welcomes thousands of visitors each year in this room, starting point for one of its plant tours. A Reynolds guide, escorting plant visitors on a personalized tour, explains a step in the cigarette packing procedure. PAGE 6 THE E. S. C. QUARTERLY WINTER-SPRING, 196CI This cigarette making machine is capable of producing over 1,200 perfectly shaped CAMEL cigarettes a minute. Tobacco is brought by overhead conveyors that automatically fill the machines. The inspector checks the cigarettes closely for uniform siie and weight. high standard of quality for which its products are famous. The company's factories form the largest cigarette and tobacco manufacturing plant in any city in the world. Research Important Research has long been an important factor in the progress of Reynolds. Special experiments, begun in 1904, led to the company's perfecting in 1907 its process for a new product, PRINCE ALBERT Smoking Tobacco. Even more extensive research was next undertaken in the cigarette field. As a result of this work, the first modern-type blended cig-arette, CAMEL, was created. Similar painstaking efforts were later devoted to achieving the distinctive character-istics of WINSTON, SALEM, and CAV-ALIER Cigarettes. The formula for CARTER HALL Smoking Tobacco was also achieved through exacting experi-mentations. These are but a few of the many contributions that research has made to further the progress of the Reynolds Tobacco Company through the years. From a one-room origin, the research structure in the company has been ex-panded time and again. Reynolds' pres-ent research center consists of two large modern buildings (one completed in 1953, the other in 1957). These buildings are connected, and the combined unit is functionally designed for many diverse activities, including use of the latest radioisotope techniques. The facilities for tobacco research are the most exten-sive in the industry. The Reynolds research staff includes many scientific specialists and techni-cians in a variety of allied fields. It is in the tradition of Reynolds that the staff is continually exploring possibilities for improving the company's products, devising better and more efficient processing methods, and developing new products. Scientists of the company havf always worked closely with federal ancj state agricultural agencies, and througl them with tobacco growers, on tech-jl niques for bettering the quality of thf I leaf. 85th Anniversary Year A short article can give only a capsule-size account of a business which is nov| nearing its 85th anniversary. The hand-ful of employees with whom Mri Reynolds began his undertaking in 1879 has grown into the force of over 14,00(! regular employees, already mentioned Production for the whole original yea:| would amount to only a fraction of j present single day's output. Where onc< they were known in only a few localities Reynolds' products today are enjoyed al over America and around the world. Th| "little red factory" which housed thi business in the beginning has been multi plied into over 200 large factory unit and leaf storage warehouses. In contras to the $7,500 the founder had to launcl the entire business venture, the averagj investment behind each regular em ployee's job amounts now to ove $56,000. Regular employees have the benefit o the company's group life, accident am sickness insurance plan; retiremen plan; comprehensive medical plan o hospital and surgical service plan; jur; service plan; vacation plan; paid holi days; suggestion plan; educational plan family group life insurance plan; an profit sharing plan. Among the service the company maintains for its employee in Winston-Salem are an extensive medi After cigarettes are packaged, they pass before packages are then put into cartons automatically. an inspector who checks for packaging flaws. Tl WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 7 Expansion: The plant of Archer Aluminum, Reynolds' foil division. Steel framework and part of roof of new addition can be seen. cal department, cafeterias, parking lots, and the confidential assistance of a pas-tor- counselor. (A small private chapel adjoins the office of the pastor-counselor and he uses it in his work with individual employees who may come to him with personal problems. It is also available to persons seeking a haven for private meditation during the working day.) On Average Workday On the products made on the average workday, the company pays the U. S. Treasury over $2 million in excise taxes. Reynolds' shipments in and out of Win-ston- Salem on the average workday re-quire upward of a mile of railway freight cars and highway motor carriers combined. Considerably more than one million business concerns enter into Reynolds' daily operations—among them, suppliers of the great variety of manu-factured items used in the plants and offices; numerous transport lines; thou-sands of tobacco-product wholesalers, and a multitude of retail outlets. More than 81,000 stockholders share in owning R. J. Reynolds Tobacco Com-pany. They include people in each of the 50 states and in almost every walk of life; educational, charitable, and medical institutions; churches; insurance com-panies; and pension and trust funds. Plant Tours The company is happy to provide per-sonalized tours in its plant for the public. This program was begun in 1918 and has been expanded through the years. These tours are now provided during all the working days and nights in the plant. Thousands of people a month—visitors from the various states and many foreign countries—come for the Reynolds tours to see America's most famous cigarettes being made. * * * The scope of R. J. Reynolds Tobacco Company today would probably surprise even that farseeing young man whose initiative, so many years ago, gave it its start. The progress the company has made under the American system of free and competitive enterprise reflects the spirit, skill, and teamwork of a great many people working together over a long span of years. COMPLETE INDEX ON PAGE 11 Reynolds' Tobacco Research Center Salem contains over 100,000 square area. It provides the finest facilities in the tobacco industry. in Winston-feet of floor for research - •• .:-.. * ' ."'V, ; ^ .;-,., ....... :- ,::;.j •-..- -::>S :::0 ;>? : : : :^ . : y^y AS ' yy'^y : : A yj ^ o ^yfy y ' ': '•-.., . ' :,...-..y'.r ^ - , -.,../- .-••• •-:,. SSI?!?. R. J. Reynolds Tobacco Company's facilities in downtown Winston-Salem. In the right foreground is seen the 22-story Reynolds Building, the company's headquarters. PAGE 8 THE E. S. C. QUARTERLY WINTER-SPRING, 1960 NORTH CAROLINA IS THE HOME OF LIGGETT & MEYERS TOBACCO COMPANY Liggett & Myers Tobacco Company traces its beginnings to the early 1800's. but the Company name of Liggett & Myers originated in 1873 when John Edmund Liggett and George S. Myers formed a partnership. In 1879, the part-nership was dissolved, and the firm was incorporated as Liggett & Myers Tobac-co Company. The Company prospered and by 1885 was considered the largest plug tobacco manufacturer in the world, with STAR as its leading brand of plug tobacco. By 1899, Liggett & Myers Tobacco Company had become a part of the American To-bacco Company. In 1911, the dissolution of the Ameri-can Tobacco Company, under the pro-visions of the Sherman Anti-Trust Act, once more established Liggett & Myers Tobacco Company as an independent manufacturer. On December 1, 1911 it was incorporated under the laws of the State of New Jersey. Liggett & Myers acquired the Durham factory which had been built by W. Duke Sons and Company in 1884 and had be-come one of the first units of American Tobacco. The Company inherited Fatima, the leading brand of blended cigarettes, Piedmont and American Beauty, also among the most popular cigarette brands at the time, and Home Run, King Bee and other brands. In 1912, Liggett & Myers became the first of the successor companies to ex-periment with the blended cigarette, as we know it today, when it introduced Chesterfield. Chesterfield is a blend of flue-cured, burley, Turkish and Maryland tobaccos. World War I enhanced the de-mand for the blended cigarette, and by 1920, Chesterfield had become the lead-ing Liggett & Myers cigarette brand. In 1952, Chesterfield became the first cigar-ette to be marketed in two sizes, both regular and king-size. The first President of the reorganized Liggett & Myers was Caleb C. Dula, a native of Lenoir, North Carolina, who had been James Buchanan Duke's able associate at American Tobacco. Mr. Dula became Chairman of the Board in 1928 and served in that capacity until his death in 1930. Clinton White Toms, a native of Hert-ford, North Carolina, became the second President of Liggett & Myers when he succeeded Mr. Dula in 1928. Mr. Toms had been Superintendent of Schools in Durham before he entered the tobacco business in 1897. William Washington Flowers, who succeeded Mr. Toms as Superintendent of Schools in Durham, left that post to join Liggett & Myers in 1911. He later became Vice President and finally served as Chairman of the Board from 1936 to 1941. A third Super-intendent of Durham Schools, William Donald Carmichael, also joined Liggett & Myers and later became advertising Vice President before he retired in 1942. Mr. Toms served as President until his Front- and rear construction views of the extensive addition being made to L&M Research Laboratories in Durham, North Carolina. Addition will double size of modern laboratories originally built some ten years ago. More than three quarters of a million people have taken one of the most popular of all industric tours through the modern cigarette factories of Liggett & Myers Tobacco Co. The Durham "home of Chesterfields, L&M and Oasis pictured here is conveniently located on Main Street in downtow Durham. Visitors are welcome to take fascinating, hostess-conducted tours between 8 and 11:15 <" and 1 and 3:30 pm Monday through Friday. WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 9 death in 1936, when he was succeeded by James W. Andrews, a native of Vir-ginia. When Mr. Andrews retired in 1951, he was succeeded by Benjamin F. Few, a native of South Carolina, a graduate of Trinity College (now Duke Univer-sity) and a nephew of Dr. William P. Few who for many years was President of Duke. Mr. Few retired November 30, 1959 and was succeeded by William A. Blount, a native of Washington, North Carolina. Before he was elected President, Mr. Blount was Executive Vice President. He was elected a /Director in 1941 and Vice President in 1943. He graduated from the University of North Carolina, and after complet-ing post-graduate work, he joined Lig-get and Myers in Durham in 1923. He became Factory Superintendent i n to New York Head-quarters in 1930, where he spent several years in the Advertising Department. In 1934, he became Assistant Supervisor, and in 1937 Supervisor, of the Manu-facturing the Leaf Buying Departments. In addition to President Blount, there are four key executive personnel located at New York Headquarters who have North Carolina background. Z a c h Toms, Executive Vice President, whose father was President of the Company, was born in Durham, North Carolina, and start-ed with the Com-pany in Richmond, Virginia. William L. Perry, Vice President and Chairman of BLOUNT 1925 and moved the Executive Committee, attended Duke University and began his career with the Company in Dur-ham. William B. Lewis, Jr., Sales Vice President, was born in Milton, North Carolina, and served with the Company in Durham. Loy D. Thompson, Manu-facturing and Leaf Vice President, was reared in North perry Carolina, received his B.A. Degree from the University of North Carolina and began his career with the Company in Durham. Today, Liggett & Myers has capital assets of more than $400,000,000 and is widely owned by some 47,000 stockhold-ers. The Company has two large mod-ern cigarette fac-tories in Durham, North Carolina, and Virginia. Also lo-cated in Durham are the Company's Re-search Laboratories, Leaf Buying Depart-ment, leaf storages, stemmeries, blend-ing plant and a separate smoking tobacco factory. A large pipe and chewing tobacco factory THOMPSON 'ictured •iggett & above Myers-are the familiar made cigarettes. packages of Typical of the Company's modern tobacco pro-cessing plants is this one at Rocky Mount. is located at St. Louis and the chewing tobacco plant of the Pinkerton Tobacco Company, an unconsolidated subsidiary, is located at Toledo, Ohio. Another sub-sidiary, the Gary Tobacco Company, is a Turkish leaf buying organization, which was formed in 1915. With head-quarters now located at Durham, N. C, it has Turkish leaf processing plants lo-lewis cated at Izmir and Samsun in Turkey and at Cavalla and L&M has been a pioneer and leader in the field of tobacco research for more than 40 years. Xanthi in Greece. Liggett & Myers also has leaf processing plants located at Rocky Mount, North Carolina, Danville, Virginia, and Lexington and Paris, Ken-tucky. Company sales offices are located throughout the United States. Today, Liggett & Myers has approxi-mately 9,000 employees, many of them in North Carolina, whose average length of service is well over ten years. Work-ing conditions are excellent. The fac-tories and offices are very modern, air-conditioned, superbly lighted, and equipped with every known device to in-sure safety and guard health. Available to employees are complete benefit plans, including an Employees Group Hospital and Surgical Benefit Plan, an Employees Group Life Insurance Plan and an Em-ployees Retirement Plan. To date, over three quarters of a mil-lion people have visited the modern Lig-gett & Myers cigarette factories located in Durham and Richmond—at a present annual rate of about 60,000. As a major A single, modern cigarette making machine, shown here in the Liggett & Myers Durham factory, makes as many as 1,250 cigarettes every minute. PAGE 10 THE E. S. C. QUARTERLY WINTER-SPRING, 1960 HUNDLEY tourist attraction in Durham, these guided factory tours have brought thou-sands of visitors to the City from every state in the nation and from many for-eign countries as well. The Liggett & Myers factory tour is not only the most popular in the tobacco industry; it is also one of the most popular industrial tours in the country. Visiting hours in Durham are from 8:00 to 11:15 AM and from 1:00 to 3:30 PM, Monday through Friday. The stemmery, leaf storage, blending and manufacturing operations in Dur-ham are under the direction of J. Cam-den Hundley, who was elected a Direc-tor of the Company and named Durham Branch Manager in 1946. Born in Ox-ford, North Caro-lina, Mr. Hundley attended the Carne-gi Institute of Tech-nology in Pittsburgh and was first em-ployed by Liggett & Myers in Durham in 1920. He became Superintendent of Manufacturing in 1930 and Manager of the cigarette factory in 1946, succeeding Charles H. Livengood. Leaf tobacco has always been, and is today, the very essence of the tobacco business. Liggett & Myers buyers, thor-oughly schooled in the tradition that it takes fine quality leaf to make a good product, attend more than one hundred tobacco auction markets each year in Florida, Georgia, South Carolina, North Carolina, Virginia, Maryland, Kentucky, Tennessee, Ohio and Wisconsin. Heading up the Company's Leaf Buying Depart-ment in Durham is Milton E. Harrington, who was elected a Director of the Com-pany in 1955. Born in Winterville, North Carolina, Mr. Har-rington graduated from Duke Univer-sity in 1931. He was first employed by Liggett & Myers in 1934 and later serv-ed as Factory Man-ager, Leaf Buyer and Supervisor, becoming Manager of the Leaf Department in 1955, succeeding James E. Farley who retired. Research began at Liggett & Myers Tobacco Company 47 years ago with the employment of the Company's first chemist in 1913. Today, looking forward to its needs in the next ten to fifteen years, the Company is doubling the size of its ultra-modern Research Labora-tories in Durham, North Carolina. These Laboratories were originally constructed in the late 1940's. The large staff of scientists in the Liggett & Myers Research Department HARRINGTON DARKIS tobacco research today is under the direction of Dr. F. R. Darkis, who was elected a Director of the Company in 1956. Originally from Frederick, Mary-land, Dr. Darkis re-ceived his B.S., M.S. and Ph.D. degrees at the University of Maryland, and first joined Liggett & Myers in 1928. In 1933, he went to Duke University as associate in the Chemistry Department, and he returned to Liggett & Myers in 1947 as Director of Research. Beginning in 1922, Dr. Paul Gross di-rected research operations for Liggett & Myers in the Chemistry Department at Trinity College (now Duke University). From 1932 until 1947, Liggett & Myers research was conducted in laboratories in St. Louis. Then in 1947, the research operation was returned to Durham under the direction of Dr. Darkis who had been associated with Dr. Gross at Duke Uni-versity between 1928 and 1932. The Company's research program con-tinually develops new and improved products, as well as improvements in the efficiency and economy of the factory operation. Basic studies of tobacco and tobacco products are pursued vigorously, and the Research Department works closely with the leaf buying organization in the testing of new crops of tobacco and purchasing the quality leaf so essen-tial to the production of quality products. In brief, the research program at Lig-gett & Myers over the years has con-tributed to the development of new types of tobacco; new storage and ageing methods; more scientific leaf buying methods; improvements in the planting, growing, harvesting, curing, processing and blending of tobacco; improved pack-aging of tobacco products; the growth of Turkish leaf in this country; the development of improved cigarette fil-ters and many others. Liggett & Myers took an active part during the 1930's in helping establish the Ecusta Paper Corporation at Pisgah Forest in western North Carolina. Be-fore World War II, most of the cigarette paper used in this country was imported. During the War, imports became no longer available, and ever since then most of the paper has been made in this country. Today, the finest cigarette] paper is made in North Carolina, and the new industry gives employment to many people in the western part of the] State. For years, the Company has worked closely with the U. S. Department of Agriculture and state agricultural de-partments in a continuing program of tobacco improvement. The Company's re-search program has also included grants to universities, as well as other scientific organizations, for tobacco research. When Liggett & Myers was reorgan-ized in 1911, there were less than 10 billion cigarettes sold in this country, whereas in 1959, domestic consumption totaled some 455 million. Today, Liggett & Myers owns almost 100 brand names, manufactures 64 different kinds of cigar-ettes and smoking and chewing tobaccos and has a sales volume well in excess of half a billion dollars. Each and every brand is registered in the U. S. Patent Packaging machines on floor after floor of Liggett & Myers' modern factories in Durham turn oil billions of Chesterfields, L&M and Oasis Filter cigarettes every month to meet the world-wide demon j VINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 11 Iffice, and in the aggregate, this repre-ents a valuable asset. Liggett & Myers cigarette brands to-ay include Chesterfield, L&M, Oasis, Hike, Fatima, Piedmont, Picayune, [ome Run and Coupon. Smoking tobacco rands include Velvet, Granger, Country rentleman, Duke's Mixture, Plow Boy, ummer-Time, Sweet Tip Top, King Bee nd Virginia Extra. Chewing tobaccos lclude Union Standard, Tinsley's, Spark 'lug, Star, Horse Shoe, Picnic Twist, v\N.T. Natural Leaf and others. Scrap hewing tobacco brands made and sold y the Pinkerton Tobacco Company in 'oledo are Red Man, Pay Car and Red [orse. Liggett & Myers brands are available 1 approximately 1,500,000 retail outlets 1 the United States alone. They are sold y Liggett & Myers to about 6,000 cus- >niers including wholesalers and large etail outlets such as drug and grocery dains. And, there are more than 1,000 iggett & Myers sales personnel in the eld servicing these complex and all-nportant channels of distribution. Liggett & Myers is a worldwide busi-ess. The Company's brands are sold in lost markets around the world, over 105 )reign countries. These export sales lake an important contribution to the ver-all business of the Company. Because it is in one of the most com-etitive of all industries, Liggett & [yers is today one of the largest users f national advertising in this country. Fetwork television, including special Miles of modern leaf storages located on Highway 70 by-pass, Durham, are necessary to properly age over many months millions of dollars worth of the best tobaccos used to make Liggett & Meyers brands of cigarettes. sports events, is the largest single me-dium used in the Company's advertising program, but wide use is also made of radio, magazines, newspapers, outdoor signs, display advertising and others. It represents an annual expenditure of millions of dollars paid for billions of advertising impressions. This investment in demand—demand for the Liggett & Myers quality products—is an important ingredient in the cigarette business today. > R-AMA PLANNED FOR NOVEMBER 10 AT RALEIGH YMCA A concentrated, one-day Public Rela-ons Seminar is planned by the Caro-nas Chapter of the Public Relations ociety of America and the Raleigh ublic Relations Society. The meeting ill be held Thursday, November 10, 960 in the new Raleigh YMCA on [illsboro Street. Co-sponsoring the meeting with the vo Societies are: WRAL-TV, Raleigh; /TVD, Durham; WDNC Radio, Dur-km; WPTF Radio, Raleigh; The Dur-am Herald, Durham; The Durham un, Durham; The Raleigh Times, Ra-igh; The Raleigh News and Observer, aleigh; the Associated Press and the nited Press International. Registration will begin at 8 a.m. and orkshops will begin promptly at 9:15. wo major speakers will be featured at ie luncheon and banquet. Cost of the itire day, including luncheon and ban-iet is to be $6 per person. Workshops will be : How To Work With Television; How To Work With Radio; How To Work With Newspapers; and How To Set Up and Operate Any ze Public Relations Department. The staffs of the various news media will constitute the panels of the news workshops. They will feature men who know "why your last article or picture did not hit the public eye and ear." Hor-rible examples of un-newsworthy pic-tures, articles and scripts will be shown the registrants with explanations of how publication could have been assured. Four of the nation's top PR executives are being secured for the PR Panel. They represent the largest, the medium-sized, and the most successful small PR agencies and will have approximately 80 years of PR knowhow and experience backing them up in their remarks. Registrants will be divided into four groups as they register and will attend all workshops which will last an hour each. Workshops will begin at 9:15 a.m.; 10:45 a.m.; 2:30 p.m.; and 4:00 p.m. The luncheon will start at 12:30 and the banquet at 6:30. The one-day affair was planned when it was noted that most PR conferences start about noon one day and end at noon the next. By crowding the entire event into one day, the group will be made to really think, and will not have INDEX American As of 1960 15 Assistant VER Wadsworth Receives Award !!.51 Austin Carolina One Hour of All Markets 30 Bright Leaf Association 27 Burley Growing Is Profitable 32 Business Machines Covers Million Items .34 Carolina Clipping Service Stays Busy 44 Chairman's Comments 2 Charlotte Opens New Office ...56 Cigarette Paper Plant Began 1939 .28 East Coast Farm Placement Meet Is Success 52 Eastern Weed Firms Organize 47 Fayetteville Opens New Office Officially ............. .51 Ficklen One of Oldest ' ' 27 Former Employees, Where Now ? '.'.'.'.'.'.'..' 40 Goodwin, BES Director Arrives .52 Hill Consultants Offer Manv Services ....47 Improving Marketing Practices .26 Lea Tobacco Pioneers 31 Lewis of Washington Visits State 51 Liggett & Myers, N. C. Is Home ' g Lorillard Celebrates Bicentennial ' ' 12 Miller, Domestic and Import Firm 31 Moen Retires [ 50 Monk Tobacco Calls Farmville "Home" ............. .38 Ports of N. C. Important to Industry '41 PR-AMA Planned ..'. jj Redryers and Packers Listings '40 Registrants At 1960 Pattern Farm Meet ......'.." 53 Research Program of Tobacco Industry 21 Reynolds, Largest in Industry 3 Sanford Tobacco One of Most Modern 37 Southeastern In Heart of Belt .....23 Taylor Brothers' Picturesque Brands ...... . . . . . . . . \ 29 Tobacco Growers Information Committee .'. 48 Tobacco Priming 54 Tobacco's Land of Plenty ..20 Tobacco Tying [\ 55 VER Godwin Celebrates 49 Webb & Company Established 1895 .25 Wilson Tobacco Co. Began in 1917 A0 time to lose interest in the events. Registrations will be accepted on a first-come-first-serve basis. They may be mailed to: Registrar, P R-AMA, Box —See PR-AMA, page 19— PAGE 12 THE E. S. C. QUARTERLY WINTER-SPRING, 196C P. LORILLARD COMPANY-BICENTENNIAL The candles on its 200th birthday cake will be lighted by the P. Lorillard Co. within the next few days to signal the first corporate bicentennial celebration in the tobacco industry. Twelve months hence when it snuffs them out by closing its books on 1960, it expects to have made an auspicious start into its third century in business. Lorillard officials view their company as an intertwining of tradition and progress; the former always being made and the latter forever representing the challenge. In a year-end note to stock-holders, Lewis Gruber, chairman of the board and chief executive officer, said: "As we look toward our 200th anni-versary, we are proud indeed to carry America's earliest tobacco name, but we are even more eager to carry on with America's newest tobacco ideas as em-bodied by our major cigarette brands. Throughout 1960 and the years ahead, you may be sure that Lorillard will strive to be first with the finest tobacco products, through Lorillard's research." Recent History The recent history of this company which pre-dates the American Revolu-tion has been so exciting that it is not only familiar to everyone in the tobacco industry, but is also well known to the nation's entire business community and to the investing public at large. Though confident in 1954 that it was well fortified to withstand the anti-tobacco crusade by virtue of its Kent Micronite filter cigarette—the first of the high-filtration brands—the company lost considerable ground to manufactur-ers of popular-price filters. Lorillard sales rose 12.8% in 1953 when the indus-try was off 2% from the previous year, but the following year its volume dropped a sharp 14.9% when the industry declined only 4.6%. It was not until August 1956 that the company's fortunes began to take a turn for the better. Lewis Gruber was elected president by the board of directors and he began to reorganize and strengthen his management team. Harold F. Temple and Manuel Yellen, who had come up through the ranks in the company, were made vice presidents. Mr. Temple was made director of sales, and, later, electee President. Mr. Yellen was charged witr directing advertising and marketing, anc subsequently, was named Sales Vicdl President. Dr. Harris B. Parmele, the company's! vice president and director of research I was given more authority and instruc- 1 tions to step up and revitalize the com|| pany's research department. George 0; Davies, treasurer, was promoted to vic< president and chief financial officer George A. Hoffman, now vice president Dr. H. B. Parmele Research George O. Davies Finance George A. Hoffman Manufacturing Shape of Lorillard Progress is embodied in its prize-winning single-level plant at Greensboro, N. C, which covers 13 acres of an 80-acre plot. When was opened in 1956 it was named one of the 10 "Top Plants of 1956" by Factory Magazine. The plant is a massive and perfectly timed symbol great changes that have taken place in cigarette manufacture—the rise of the filter cigarette, the new brands, the variation in packaging, etc. The fl of tobacco is virtually automatic in the processing stages,, the actual cigarette manufacture, packing and shipping. An automatic climate control systi regulates temperature and humidity according to the needs of the various plant departments. Plant and equipment have been designed "as a unit" acco ing to specifications of P. Lorillard Company, with special provision for expansion and flexibility so that new developments caused by the shifts smokers' tastes can be swiftly integrated into the plant's normal operations. Plant has most advanced equipment for scientific research in eight laboratori WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 13 foment before things begin to happen to tobacco i "live storage" room of P. Lorillard's Greensboro, I. C, plant. This room is a temporary halt where he hogsheads will be held until the tobacco is eeded in the processing. Previous resting places or the hogsheads had been in terms of storaqe s storage, but the tobacco's stay here can be erminated at a moment's notice. The giant hogs-eads contain aged and cured tobacco classified xcording to type and grade. They will be opened it both ends preparatory to going through the iext stage, the moistening. 'ransformation of tobacco starts in tobacco loistening unit, which resembles three elevators nd simultaneously holds four opened hogsheads f tobacco in each of its three compartments, obacco coming from the "live storage" room of . Lorillard Company's Greensboro, N. C, plant ere enters the first stage of the processing which hanges it from a dried plant into a fluent leasure-giver. This process ensures that aged and ured tobacco has perfect moisture content for igarette making. A vacuum is created in each of he compartments, causing the injected moisture i penetrate throughout the tobacco. Each eleva-n- like compartment finishes its operation in 16 linutes and the hogsheads are then automatically onveyed to the next stage. lixing to taste occurs in this conveyor after the tree types of tobacco—Virginia, Burley and urkish—are broken out of the hogsheads and 'ought together on this giant conveyor in the Lorillard Company's Greensboro, N. C, plant, obacco _ keeps moving on conveyor while it is sing mixed, thus losing no time on its way to te cigarette-making room. Blended mainstream of tobacco takes form in P. Lorillard's ultra-modern plant in Greensboro, N. C. The tributaries are two separate conveyors (coming from upper left and lower right on photo-graph) of identical blended tobacco, which feed into the large centrally located conveyor con-nected with cigarette-making room. Tobacco comes from independent dryer and cooler systems designed to give it perfect moisture and tempera-ture to ensure fresh tobacco taste and aroma. This perfection in bulk form is now ready to be formed into the neatly contained pleasure of a cigarette. was made director of manufacturing. And Herbert A. Kent, former Lorillard president and board chairman, was called out of retirement to serve as a director and consultant. Later, when Lorillard's international operations assumed new importance, Morgan J. Cramer, head of the com-pany's export operations, was elected a director. Reduced Price One month after his election to the presidency, Mr. Gruber reduced the price of Kents to the popular level and within ten months sales of the brand tripled. When in the summer of 1957 a leading national magazine reported this brand to give smokers the lowest amounts of tars and nicotine, consumers virtually stampeded retail counters to buy Kent. Even today, some are inclined to at-tribute Lorillard's success to luck. The tobacco company's officers do not deny Distinctive packages of Kents stream out of the cigarette-packing machines in vast making and packing room of P. Lorillard's plant in Greensboro, N. C. The cigarettes have been transferred to the packing machines by "suitcase" containers and now, after the packing stage, are en route to be put into cartons. Heart of plant is this room, 457 feet long and 310 feet wide—large enough to hold three side-by-side football fields. With its Micronite filter, Kent caused a revolution in the cigarette industry, leading an amazingly fast development that saw filter tip production rise from insignificance to the capture of half of the cigarette market in a half-dozen years. Cartons of Old Golds are sealed as they move down conveyor en route to the shipping room in P. Lorillard Company's Greensboro, N. C, plant. The Old Gold "family" includes the Old Gold Straight, regular and long size, and the Spin Filter. The oldest brand among Lorillard's blended cigarettes. Old Gold has become "plural" to meet various tastes of contemporary smokers. Creation of the cigarette takes place in this vast making and packing room of P. Lorillard Com-pany's plant in Greensboro, N. C. The overhead feeder-conveyors carry the Lorillard blends here, where they are fed into the cigarette-making machines. As cigarettes shoot out of the ma-chines, girls place them in "suitcase" containers on automatic conveyor which takes them to pack-inq department. This is the heart of the Greens-boro plant—where cigarettes are created at the explosive rate of 1,200 or more per minute, per machine. End of production line where cases containing 60 cartons of Old Gold, Newport and Kent cigarettes stand ready for shipment in P. Lorillard Com-pany's Greensboro, N. C, plant shipping room. Stacks of cases will be transported on their pallets automatically to special railroad and truck docks for shipping. To ensure freedom from trans-portation blocks, raw materials enter plant at receiving areas on west and north sides and, after passing through processing and manufac-turing, the finished products emerge,, packaged and encased, on the west side, close to receiving. PAGE 14 THE E. S. C. QUARTERLY WINTER-SPRING, 196C the impact that the magazine article had on their fortunes, but, as one tobacco man explains, "Lorillard's so-called luck was just the arrival of an opportunity for which it was prepared." To supply the soaring demand, the company installed new machinery at its Greensboro, N. C, and Louisville plants and kept them going around the clock. And, though Kents had to be allocated to customers, the cigarette manufacturer never let up on its promotional efforts. On the contrary, it expanded them. Kent sales tripled from 1957 to 1958 and the brand had become a leading seller in several important markets by early in the latter year. Kent sales reached 37.5 billion units in 1958, up from a little over 3 billion in 1956. Within the past few years, Lorillard introduced Newport "with a hint of mint" and added Old Gold Straights to Old Gold Kings and Old Gold Filter Kings. In July of this year, it bowed Spring, a mentholated filter-tip cigarette with Micropore paper. While the com-pany's regular cigarette is experiencing the effects of a declining market for that type of product, its filter and mentho-lated brands are doing well in these ex-panding markets. Wall Street Report Last month, a Wall Street firm issued a report on the P. Lorillard Co. which stated : "Between mid-1957 and late last year, sales and particularly earnings of this fourth largest factor in the tobacco products industry recorded rather spec-tacular gains. The factor primarily re-sponsible for the sharp improvement in operating results, of course, was the vast upsurge in sales of the company's Kent "*r.waaoty,Na.4, Chatham (rreet.ncar the Gaol R) Peter and George fWillard ' :S Snuff of the befi quality Is' (la iuf;taory,No.4, tree' wb Cos tobacco, < 'mm ii kitefoot dr.. Common fmoakingdo .ViMr. do. I.adic twift Ho. m.iy bv- had is follows Prig or carrot do. Maecuha muif, Rapper do. Slralburghdo. Common rappee do P.gta.l do. in fmall rolls, Scented rappee do. of dif- "-7 1 "- ferine kinds, HogtaitdO. \ Scotch Ho. The above Tnbjcc* and Snuff will be fold reafonable and warranted :>•, good as any on the conrincnl found If not to prove good, any part of it ma, be returned, if nor <Un).!y,e(f. ' N. B. Proper jllowance will be made to thofc that pnrtfWi* .! quantity. M*,. . » cigarettes, which rose from a relatively minor item to become the country's fifth best-selling brand. Sales of Kents, which amounted to less than 3y2 billion units in 1956, were running at the annual rate of close to 40 billion units by late 1958. Thus, the company's dollar sales rose from $203 million in 1956 to $479 million last year. Bigger Profit "The sharp increase in sales volume, together with the transfer of a large part of the company's operations to the new and efficient Greensboro plant and the June 1957 price increase on non-filter cigarettes, resulted in a substantial widening of profit margins. The pretax margin, which was 5%% for the first half of 1957, had improved to over 12% by the second half of last year; per share earnings rose to $4.01 in 1958 from 6' cents two years earlier." The Greensboro plant to which this report refers can produce more than 10( million cigarettes in a single eight-houi shift. It employs more than 2,000 people With minor exceptions, it is a singk level factory, so that the flow of tobaccc in its various stages is not impeded bj elevators or other floor-to-floor handling It was named one of the ten "Top Plants of 1956." by Factory Magazine. This plant, which has an automata climate control system to regulate tem-perature and humidity and condition the air throughout the entire plant, labora-tories and offices, approaches automatic manufacture. Throughout every phase of processing and cigarette manufacture—softening —See P. LORILLARD CO., Page 22- Oriqinal Lorillard Ad—1789, WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 15 AMERICAN TOBACCO IN 1960 The American Tobacco Company, which today derives 95% of its dollar revenue from cigarette sales, has been most closely identified with the cigarette since its beginnings. These trace to a small family business begun in 1865 by Washington Duke and his sons, in Dur-ham. In 1881 one of these sons, James B. Duke, branched out from smoking tobacco into ciga-rette manufacture. At first the little firm's cigarettes were hand-rolled ; but by 1884 Duke and his mechanic had perfected James Bonsack's "making j^ 'SFIL machine." This per-j^^^ A| c (1 n o y EL^WmI quantity production, j. ^p M but also a popular W*HML JmJM price for the ciga-duke rette, in that era a specialty item. Combined with the fine Bright tobacco which was beginning to be grown and cured in North Carolina, Duke's innovations led directly to the cigarette industry as we know it today. _ In 1884, the year he brought the first cigarette machine to production effi-ciency, Duke opened a New York City factory and used that center as his sell-ing headquarters. Using essentially modern methods of national promotion and distribution, he won an impressive share of the cigarette market and in 1890 formed a new corporation, The American Tobacco Company. The taste of American consumers, who used pipe tobacco and snuff during co-lonial days, and switched to chewing tobacco and cigars for the most part during the nineteenth century, does not change overnight. In terms of per capita poundage consumption, cigarettes were not to draw even with smoking tobacco, plug and cigars until 1921 or 1922. So during the first three or four decades of its corporate existence, The American Tobacco Company became an important producer of plug, smoking tobacco and cigars. (By 1912, in fact, its American Cigar subsidiary was bigger than the parent company, employing 37,000 peo-ple in 60 factories.) Around the turn of the century, few brands were truly na-tional. In consequence, American To-bacco's brands in all divisions of the tobacco market—including cigarettes — were numbered not by the dozen but by the hundred. A few of these old brands survive, more as momentos of a vanished era than as actively-promoted tobacco prod-ucts— Sweet Caporal and Omar ciga-rettes, Honest Long Cut, Tuxedo and Serene tobacco mixtures. The company no longer makes plug tobacco. Some of the company's big cigarette brand names had their origins many generations ago. Lucky Strike, currently among the leading regular-size cigarette brands, took its name from the gold-rush fever of the 1850s. Around that time the name was used for a plug to-bacco made in Eichmond by R. A. Pat-terson. Still later, the name was applied to a roll-cut Burley pipe tobacco and in 1916 American's new cigarette, made with the "It's Toasted" process, was given the Lucky Strike brand name. Over the years, the emphasis of Lucky Strike promotion has been placed on the Leaf types for cigarette blend are examined by American Tobacco executives. Left to right: Alan C. Garratt, ACC Division Advertising Manager; Paul M. Harm, President; W. B. Young, Asst. to the Senior Vice President; R. B. Walker, Vice President and Director of Sales; Alfred F. Bowden, Vice President. American Tobacco Company's headquarters at 150 E, 42nd Street. New York. Original "Tobacco Factory" of Washington Duke near Durham, Mr, Duke is standing by the entrance. PAGE 16 THEE. S. C. QUARTERLY WINTER-SPRING, 1960 Reidsville cigarette plant of the American Tobacco Company. cigarette's manufacture—"It's Toasted" appears on every pack—and on the quality of its leaf. Since 1944 the fa-miliar initials "L.S./M.F.T." (Lucky Strike Means Fine Tobacco) have also been an integral part of the package. Only two cigarette brands have ever sold more than one hundred billion ciga-rettes in a single year; Lucky Strike is one of them. The biggest American Tobacco Com-pany brand is Pall Mall. Although to-day's king-size Pall Mall cigarette dates from 1939, the brand name itself played an interesting part in the company's earlier history. Dur-ing the 1890s a very considerable per-centage of cigarette sales were in the straight Turkish category, and the origi-nal Pall Mall was one of these. Shortly after the century's turn it was acquired by American Tobacco and a young trainee, G. W. Hill, was placed in charge of Pall Mall and a few other brands, then of minor significance. It was Hill who evolved the distinctive package color later known as Pall Mall Red; and it was Hill who departed from the premium-coupon form of merchandising in favor of straight advertising on mag-azine covers. For many years Pall Mall sold at a premium price—"A Shilling in London, a Quarter Here" while cigarettes generally sold at a clime. But the name and the label design seemed right, in 1939, for the new king-size cigarette with its modern blend. Events seem to have indicated that it was; Pall Mall has shown consistent growth ever since, and is currently credited by an inde-pendent analyst with the No. 1 position among all cigarette brands. Another brand originally made to re-tail at a premium price has evolved into one of the company's major products: the Tareyton cig-arette. In 1913 Herbert Tareyton was a de luxe item, packaged in lead foil, with a white - and - blue wrapper. It was HAHN intended to lend indirect lustre to a high-grade smoking tobacco of the same name (Herbert Tareyton pipe tobacco is still made by The American Tobacco Company). Over the years it evolved, first into a cork-tip cigarette (1924), then into a tipped, king-size running mate for Pall Mall (1940. Although the tipped, nonfilter king-size Herbert Tarey-ton is still an important brand, it has been overshadowed in recent years by Dual Filter Tareyton (1958). The last-named cigarette brought an innovation to the filter-conscious fifties—a dual or compound filter whose inner component uses activated char-coal to produce a high degree of mild-ness in the delivered smoke. A second fil-ter brand, introduc-ed in 1956, took its brand name from a radio-television show long identified with the company : Hit Parade. In the cigar field, CROWE which accounts for perhaps 3.5% of the company's dollar sales, the company's big seller is Roi-Tan, largest-selling brand in the lOtf class. "Roi-Tan," the current advertising goes, "has more of everything—including smokers." It also has more shapes than its competitors in the 10<^ field, five in all (Fresh Perfectos, Fresh Bankers, Fresh Panetelas, Fresh Blunts and Fresh Invincibles) . In addi tion, Roi-Tan is marketed in two 54 sizes (Cigarillo and Trump) and in a 4f size (Golfer). Ever since the founding of American Cigar Co. in 1901 (that subsidiary has HILL Buyers follow the auctioneer as he works down o line of baskets spread out on an auction warehouse floor. //INTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 17 #*«s «*•***«> SANDS ong since been absorbed), American robacco has held an important position n the Bonded Clear Havana market. Its >rands include La Corona, Antonio y Cleopatra, Bock y Ca., and Henry Clay, ;hese comprising the argest-selling Bond-ed Clear Havana line. A subsidiary also manufactures the Cabanas cigar, which is made in Havana. Although smoking tobacco sales are relatively minor, the company's price list still includes 28 orands. As recently as 1954, there were 32, and in 1931, 126. The line leader is Half and Half, whose name denotes its Drigin as a mixture of two older smoking tobaccos—the Lucky Strike Roll Cut (Burley tobacco) and the old Bucking-dam brand (Bright tobacco). And in the premium-price field Blue Boar, still blended with a special Virginia smoked ham flavoring, is American's top entry. The oldest product still made by the company—and one of the best-known tobacco products in history—is the fam-aus "roll your own" Bright tobacco in a sack: "Bull" Durham. There are still men who prefer do-it- yourself cigarettes and who will smoke no other than the genuine "Bull" in its historic muslin sack with the ye 1 1 o w drawstring. Today American Tobacco has four large cigarette in-stallations — each comprising a factory, one or more leaf stemmeries, and leaf storage. These centers are located in Richmond, Durham, Reidsville and Louis-ville. In addition, the company's plants include a smoking tobacco factory in Richmond, and cigar plants in Phila-delphia, Trenton, Charleston, Owensboro and Wilkes-Barre, leaf prizeries and storages in many localities. Its Research Laboratory, which dates to 1911, is now housed in a large and recently-expanded structure in Richmond. President and chief executive of this big enterprise is Paul M. Hahn. A New Yorker by birth and graduate of Columbia Univer-sity Law School, Hahn's first con-tact with American Tobacco came dur-ing the 1920s. At that time he worked for the corporation's . e g a 1 counseling YOUNG firm, and was assigned to American as resident counsel. In this capacity his iroad grasp of corporate problems was recognized by then President G. W. Hill. In 1931 Hahn was made Assistant to the President and a Director. Shortly there-after he became a Vice President. Dur-ing his three decades as an executive of American, Hahn has performed in many capacities: as an administrator, a "policy man," a public relations and stockholder relations expert, and during the 1940s as head of the subsidiary pro-moting Pall Mall cigarettes. In 1953, Hahn was a moving force behind the establishment of Tobacco Industry Re-search Committee, the industiy's effort to sponsor impartial, independent scien-tific research in the field of smoking and health. In other ways, too, Hahn has demonstrated his statesmanlike approach to industry problems (he is the dean of cigarette company presidents, having headed American since 1950). The Amer-can Tobacco Company's advertising policy is his personal responsibility, and through thick and thin he has kept his advertising "in good taste, to match the good taste of our products." He is mind-ful of the historic role of the tobacco tradition in the U. S., and has refused to capitalize on antitobacco attacks as a means to quick and easy sales. Appro-priately for the President of American Tobacco, Hahn himself smokes cigaret-tes, a pipe and cigars. Over the 70-year span of its corporate existence, American Tobacco has had Storage sheds of American Tobacco Company in Reidsville. Durham plant of the American Tobacco Company. ^ PAGE 18 THEE. S.C. QUARTERLY WINTER-SPRING, 1960 Tarevfon S OUAUUIfcH /"s/tttxr Brands of cigarettes manufactured by American Tobacco Company. only five presidents. The founder was, of course, J. B. "Buck" Duke. He was succeeded in 1912 by Percival S. Hill (who had begun as a drummer for Bull Durham) and P. S. Hill was followed in 1925 by his son, George Washington Hill, considered by many to be an advertising woody midrib from the leaf. It embraces the tobacco's long sleep in the quiet storage sheds—two years or more. Then the strip leaf, exactly blended by class, grade and crop year, is delivered by the American Suppliers Division to the fac-tories. There the final blending of Bright, Burley, Turkish and Maryland types takes place under rigidly controlled tem-perature and humidity. A gentle spray adds a moisture-retaining agent to help the blend keep its freshness. Before be-ing shredded into the long, fine strands that make it a cigarette mixture, the strip leaf is flavored, tumbled together and "bulked"—allowed to stand overnight while the various oils and aroma mingle and blend. And the manufacturing flow chart provides for many tumblings and retumbilngs so that the mix will be com-pletely uniform from one cigarette to the next. Looking at a quality cigarette, it is difficult to realize the many steps need-ed to produce it. Between leaf buying and final packaging, for instance, the tobacco is blended no fewer than thirty-five separate times—at the hundred-plus company prizeries where leaf is received, in the seven stemmeries, in the four fac-tories' spreaders, cutters, dryers, flavor-ing drums, and making machines. In the stemmery alone the leaf is Firing tobacco barn. While this is a wood burn-ing barn, fuel oil and gas are used extensively and some barns burn coal. virtuoso without peer. Vincent Riggio headed the company after Hill's death in 1946 and was in turn succeeded, in 1950, by the present incumbent, Paul M. Hahn. When George W. Hill ended the com-pany's "one big brand" era in 1939 by pitting Pall Mall against the field, in-cluding his own Lucky Strike, he placed the new king-size brand in a subsidiary company with its own advertising staff separate from that of Lucky Strike. Paul Hahn became head of that subsi-diary, and the custo-dian of Pall Mall's fortunes, in 1940. And ever since that year — except for a wartime hiatus when 1j -**. mM advertising was sus- pended Pall Mall FOURNIER has been forging its way toward the No. 1 position among all cigarettes. On the manufacturing side, the com-pany's principal activity—the complicat-ed, painstaking process of making quality cigarettes—begins with sharp-eyed buy-ers on the auction markets. It continues through stemming, or removal of the Examining tobacco inside the curing barn. Preparation for stemming tobacco. Wooden hogs-heads have been removed from this tobacco. J An average tobacco farmer and his family tie the leaves on sticks preparatory for curing in /INTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 19 eam-cleaned seven times and is air-ashed almost continuously, so that the rip leaf delivered to the factories is as ean and pure as man can make it. To 3 this, American Tobacco engineers ave designed and built their own strip-ing machinery. Keeping the blend uniform is no simple isk: so that the tobacco "lines" will be le same at each of the four cigarette inters, hogsheads of various grades, of ifferent geographical classes, and from ;veral crop years must frequently be vuttled from one location to another. The factory itself is a giant air-con-itioned humidor where temperature tust be just right at every stage. Hu-ddity is controlled so that moisture con- >nt in the leaf is maintained within a derance of one-tenth of one percent. And when the blend finally reaches the taking machines, the length and dia-leter and weight of each cigarette are "Twenty to the pack" machine in action. mtrolled just as precisely by a battery f detectors, feeders and regulators. Looking at the final product, the re-alts of all this are not, for the most art, visible to the naked eye. But among le nation's 58,000,000 cigarette smokers here are many mil-ons who can per-eive them by taste, 'hese are the people dio keep The Amer-an Tobacco Com-any in business. Owned by some 5,000 stockholders the average com-lon stockholding is i shares) , Ameri-in Tobacco employs TURNER 7,000 persons in this country. Like )bacco-making itself, employment with ie company is something of a tradition : vo out of every three regular employees [ the cigarette installations have been rtK The American Tobacco Company in years or more; 20% have service icords of over twenty-five years. Most nployees are in the four big cigarette inters; a significant number are in the af-buying division, American Suppliers, hich purchases a quarter-billion dol-rs' worth of tobacco in an average ?ar for use in the company's brands, his leaf, most of which is aged two kars or more before it enters the manu-cturing stream, is stored in some 271 huge storage sheds in and around the factory centers. There is a special overseas subsidiary, American Tobacco Company of the Orient, Inc., which purchases Turkish-type, aromatic tobacco in Turkey and Greece. Another subsidiary, J. Wix & Sons Limited, manufac-tures cigarettes in London for the United Kingdom market. Another, the Cuban Tobacco Com-pany Inc., purchases Havanan leaf for use in cigars and also has manufac-turing plants of its own. One measure of the size of the American Tobacco organ-ization is its dollar sales, reported as $1,103,023,397 in 1958 and even more in 1959. Another is the fact that in each of the last ten years, the company has paid out more than one-half billion dol-lars to the Federal and state govern-ments for excise and income taxes. Dur-ing the decade just ended—the 1950s — earnings increased by about 50%. This progress is reflected not only in dividends to stockholders but also in provisions for WILLIAMS Workers check weight cigarettes quality testing. the welfare of employees. Pending for action at the annual meeting of April, 1960 is a new profit-sharing plan cover-ing all regular full-time employees in this country. This will be in addition to retirement pay bene-fits which have been in effect for a num-ber of years. Headquarters of The American To-bacco Company are in New York City, in a gleaming stain-less- steel skyscraper across from Grand Central Station. Many of the corpo-ration's directors make their offices there, including those familiar to North Caro-linians. John A. Crowe, Senior Vice President, Manufacture and Leaf, is a frequent visitor to the Durham and Reidsville plants. Vice President Virgil D. Hager, for many years manager of the Durham factory, also makes his SPARROW office in New York, as does William B. Young, originally of Reidsville and now Assistant to the Senior Vice President. Managing the Durham and Reidsville factories are, respectively, Henry V. H. Stoever, Jr., and Felix E. Fournier. Leaf Division (American Suppliers) chiefs in those towns are J. W. Williams and Royal W. Sands. President of the Amer-ican Suppliers Division, with his head-quarters in Richmond, is George Turner, a Director of the company. Also a Director, and Vice President of Ameri-can Suppliers Division is John B. Spar-row, who operates from a Durham office. Guiding policy for these executives and for those who work under them is the traditional phrase, "Quality of product is essential to continuing success." The company's Indian symbol "Powhattan" is well-known; not so well known is the fact that it depicts the famous seventeenth-century chief Powhattan, father of Poca-hontas and known to legend as "The Guardian of the Leaf." POWHATTAN Mr. Henry V. H. Stoever, Jr., manager of the Durham branch of American Tobacco Company is shown with packing machine operator. PR-AMA —Continued from page 11 — 589, Raleigh, N. C. There will be a limited number of rooms at the YMCA available for Wednesday and/or Thurs-day nights. Room reservations must be made directly with the Secretary, YMCA, Raleigh. The two Societies have, in the past year, brought many top-flight PR prac-titioners into the area to speak to the public and their own members. These organizations have probably done more to establish the PR Profession in the Carolinas as a reliable group of public servants than any other effort in recent years. Among prominent speakers brought to the area are: Dr. Paul Ylvisaker of the Ford Foundation; Fred Johnson, formerly Chairman of PR, Rexall Drug and Chemical Co., Cali-fornia; Mel Emdee, VP of Creative Arts, Washington, one of the top authorities in film production; Henry E. Gellermann, Director of PR and Advertising for the Wall Street firm of Bache & Company; and Paul V. Zucker, vice president of the New York firm of Ruder and Finn. PAGE 20 THEE. S.C. QUARTERLY WINTER-SPRING, 1960 TOBACCO'S LAND OF PLENTY By James P. Richards President, The Tobacco Institute, Inc. When it was suggested that I prepare an article for this special tobacco issue of The E.S.C. Quarterly, I was interest-ed and pleased. Quite apart from my association with the Tobacco Institute, I have always had a keen interest in the development of the industry in my neighboring state. The paramount place North Carolina has long-held in tobacco agriculture and tobacco manufacturing is something to admire. We grow flue-cured tobacco in my home state of South Carolina and a good deal of it, too. I know something about tobacco farming and its economic im-portance to the state. We don't manufac-ture cigarettes—that is left to the ex-perienced and well-established factories in North Carolina, Virginia and Ken-tucky. But we do manufacture several hundred million good cigars each year. We at the Tobacco Institute have been particularly interested not only in the economic but also the historical and cul-tural role tobacco has in America. I knew North Carolina was represented in a good deal of historical material. So as a basis for this article, I asked for some of the pertinent facts. I was hardly pre-pared for the wealth of historical and economic information that was turned up about the Old North State. Only a small part of that information can be recounted here. The full story of tobacco in North Carolina could well fill several volumes, and I am sure that this issue of the Quarterly will contain the most relevant material. EDITOR'S NOTE James P. Richards of Lancaster, South Carolina, was serving as Chairman of the House Committee on Foreign Affairs when he retired from Congress, without seeking re-election, at the end of the 84th Con-gress, January 2, 1957. He had represented the Fifth Congressional District of South Carolina continuously since being first elected in 1932. On January 7, 1957, he was appointed by President Eisenhower as special assist-ant to the President with personal rank of Ambassador. In this capacity his duties were to advise and assist the President and Secretary of State on plans to im-plement the Eisenhower doctrine. After carrying out a special mission last spring to the Middle East, he undertook another assignment in the Pacific area which he has recently completed. Mr. Richards served as a delegate to the Japanese Peace Treaty Conference in 1951. He was chairman of a Joint Congressional Study Mission sent to Europe in 1951 at the request of General Eisenhower. He was United States delegate to United Nations 8th General Assembly in 1953. A native of South Carolina, Mr. Richards was born in 1894 and graduated from the University of South Carolina, which in 1955 conferred upon him an honorary LL.D. degree. Mr. Richards is a veteran of World War I, is married and has two sons and one daughter. Despite its importance in the tobacco economy today, North Carolina is a rela-tive newcomer. A year after the War Between the States ended, production of tobacco in North Carolina totaled only 7,840,000 pounds. In 1959, the state's tobacco har-vest was very nearly a hundred times that of 1866, or over 776,000,000 pounds. Not a single cigarette had been com-mercially manufactured in North Caro-lina by 1866. But in 1959 its "making" factories had turned out well over half of the 488 billion cigarettes produced in the United States. Between these dates lies a near- cen-tury record of agricultural and manu-facturing development of tobacco in North Carolina. The Long Road to Success Virginia and Maryland, it will be re-membered, began their economic careers as tobacco-producing colonies. That was not so of the Province of Carolina. The now long-established status of North Carolina as the world's major producer of cigarette leaf and of cigarettes was, chronologically, a late achievement. It was almost 275 years after Spanish colonial seeds were, around 1612, first planted in Jamestown before the Tar Heel State began to assume importance in the tobacco economy. Once that development began, the quality of North Carolina leaf and the energy of local manufacturers rapidly carried the state to first place in the to-bacco industry. During that progressive development, while superior leaf and superior tobacco goods were being produced, the brand names of smoking tobaccos and cigarettes manufactured in North Carolina became known around the globe. Outstanding men in the state created a great indus-try and many became world-famous. In the process they also increased the wealth of the community and made valuable contributions to its culture. The Seedling Years Looking back briefly, it is interesting to note the conditions under which North Carolina began. When the establishing of a colony adjoining southern Virginia was being discussed, in 1662, the noblemen requesting a land grant stated that set-tlers would not grow tobacco in the new province in competition with plant-ers in Virginia and Maryland. These two colonies were then going through a re-current depression owing to overproduc-tion of their staple. But settlers from Virginia and Scots-men, Germans and others from southern Pennsylvania had been moving into the Carolina area from 1660 on. They were soon producing an excellent type of to-bacco. A few years later Virginia penal-ized its unwanted stepchild by prohibit-i RICHARDS ing entry of North Carolina tobacco int(| its dominion. English Rules and Economic Laws The England traders, who had mor(| influence in directing the new province than the Lords Proprietors of Carolina thereupon shipped Carolina tobacco di rectly to Scotland and the Continent. Ii these operations they were violating th< Navigation Acts which required colonia tobacco to be landed first in Englisl ports. And Dutch merchantmen, alway: eager at that period to annoy the Eng lish, frequently slipped into that "refugi of pirates," Rogue's Harbor (AlbemarL Sound), and took out shiploads of goo< leaf. Under the influence of the shrew< northern traders Carolina's tobacco pro duction could well have increased. Ther' was, however, an economic situatioi which intervened: too much leaf fron| Maryland and Virginia in English an<j European warehouses to warrant largej scale production in Carolina. Throughou the colonial period, therefore, tobaccj cultivation in the Province remained fairly limited and sporadic. Bright Spot in Tobaccoland The conditions which altered the agri cultural and manufacturing characteris tics of North Carolina were numerou Only the major ones need be indicate! here. By the early decades of the 19th cen tury there had been a mass swing awa; from snuff. There was a wide-scale re vival of interest in pipe smoking. Wit it came a consumer demand for a mor aromatic, lighter-colored leaf than thai produced in Virginia and Maryland. After some experimentation, it wa found that the sandy soil of the centr; —See LAND, page 24— WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 21 THE RESEARCH PROGRAM OF THE TOBACCO INDUSTRY RESEARCH COMMITTEE By Timothy V. Hartnett Chairman In January 1954 an event unique in the history of American industry—and possibly in science too—took place when representatives of tobacco manufac-turers, growers, and warehousemen es-tablished the Tobacco Industry Research Committee. Representatives of North Carolinas tobacco economy participated in this new undertaking that was to contribute greatly to scientific advances. One member of the TIRC form the for-mation was North Carolina's Fred S. Royster of Henderson, managing direc-tor of the Bright Belt Warehouse Associ-ation. Representatives of leaf groups in other states, as well as most major to-bacco companies, also were among the founders. Purpose of the Tobacco Industry Re-search Committee is to support research by independent scientists into questions relating to tobacco use and health, par-ticularly lung cancer and heart disease, and to make the facts known to the public. In the few months preceding the in-dustry's action questions had been raised about tobacco use. There had been pub-lic attention—some of it of sensational nature—to statistical reports linking smoking with lung cancer. But there was a great deal of doubt among doctors and scientists as to the meaning and validity of these reports and similar ones that were to follow. It soon became apparent that tobacco was just one of many factors being studied by scientists as possible suspects in lung cancer and heart disease. Point-ing the finger of suspicion solely at to-bacco did not sit well with those who were aware of the many factors that might be involved. But the publicity was concentrated on tobacco—especially by anti-tobacco elements who adopted the health charges to back their campaigns. Before long it was quite clear that scientific knowledge about the effects, if any, that tobacco might have on humans was limited and often confusing. It was to help science fill in these many wide gaps that the Tobacco Industry Research EDITOR'S NOTE Mr. Timothy V. Hartnett, Louisville, Ky., was named full-time chairman of the Tobacco Industry Research Committee in July 1954. Mr. Hartnett had just retired as presi-dent of the Brown and Williamson Tobacco Corporation, a position which he had held since 1941. He has been associated with the tobacco industry for 50 years. The Tobacco Industry Research Com-mittee was formed early in 1954 by cigar-ette manufacturers, organizations of to-bacco growers and warehouse associates to sponsor research into all phases of tobacco use and health. TIMOTHY V. HARTNETT Committee undertook its research pro-gram— and therein lies the uniqueness of this industry effort. The Scientific Advisory Board Within a few months after its estab-lishment, the TIRC invited doctors and scientists well known for their work in cancer, heart disease, and other ailments to serve on a Scientific Advisory Board. Among them is Dr. Kenneth Merrill Lynch, president of the Medical College of South Carolina at Charleston, who is presently chairman of the Advisory Board. Now consisting of 10 scientists who still maintain affiliations with their re-spective institutions, the Board has responsibility and authority to develop and direct the TIRC's research program. The Board itself does no research for the TIRC, and the TIRC does not operate any facility or laboratory for research. I have been privileged to be chairman of the Tobacco Industry Research Com-mittee since mid-1954, and I have watch-ed with admiration and gratitude the dedication and efforts of the men on the Scientific Advisory Board. They have taken their considerable knowledge and experience and abilities, and coupled them to a desire to find the truth—and that is the basis of the research pro-gram they are guiding. The research supported by the TIRC is conducted by independent scientists who receive grants-in-aid from the Sci-entific Advisory Board. The scientists are given complete scientific freedom in doing their studies and in reporting or publishing their findings in the accepted scientific manner—through medical and scientific journals and societies. One measure of the progress of the industry's extensive research program can be seen in these figures : through 1959 the Board had recommended grants to 90 scientists in 61 hospitals, universities and research laboratories throughout the country from funds that so far total $3,700,000 appropriated by the TIRC. Perhaps a more significant measure is seen in the fact that these scientists have published over 100 papers in medical and scientific journals describing their work under grants they have received from the TIRC. These reports are providing new and valuable information in the search for knowledge about tobacco use and health. "Tripod" of Speculation I think it pertinent at this point to refer to the recently issued 1959 Report of Dr. Clarence Cook Little, scientific director of the Tobacco Industry Re-search Committee and world-known can-cer research scientist. Dr. Little notes that the charges against tobacco as a cause of lung cancer rest on a "tripod" of speculation—statistics, pathology, and animal experimentation. He considers each "leg" of the tripod and makes these points: 1. Statistics. There has been consid-erable analysis of statistical studies pur-porting to show an association between smoking and certain causes of death and much disagreement over their meanings. Dr. Joseph Berkson, head of the Sec-tion of Biometry and Medical Statistics at the Mayo Clinic, Rochester, Minn., is one doctor who has published several papers relating to statistical studies of tobacco and lung cancer. Dr. Berkson is among the many who have stated that statistical findings do not show that smoking causes lung can-cer. This disease, he said, is basically a biologic, not a statistical problem, and the statistical claims have not been con-firmed by experimental and direct ob-servational studies. There is, he said, virtually no substantial clinical, path-ologic or other direct evidence to show that smoking is the cause of lung cancer. Another scientist who has commented at length on statistical claims is Sir Ronald Fisher, a former Arthur Bal-four professor of genetics at the Uni-versity of Cambridge, England. Sir Ronald has pointed out the statis-tical work of two British investigators whose data indicated that inhalation of cigarette smoke actually seemed to di-minish the change of lung cancer in the population studied. Sir Ronald, commenting on this, wrote : "There is nothing to stop those who greatly desire it from believing that lung cancer is caused by smoking cig-arettes. They should also believe that inhaling cigarette smoke is a protection. To believe either is, however, to run the risk of failing to recognize and, there- PAGE 22 THE E. S. C. QUARTERLY WINTER-SPRING, 1960 fore, failing to prevent other and more genuine causes." 2. Pathology. Very early in its pro-gram, the Scientific Advisory Board to the TIRC sponsored a long-time study by the pathology of human lungs by 12 leading pathologists in different parts of the country. All these pathologists found various lesions frequently in lungs of non-smokers as well as in smokers, in persons of both sexes and of all ages and of different places of residence. What such conditions mean and what brings them on is a matter of continuing study. 3. Animal experimentation. Of signi-ficance are the continuing reports of failure to induce lung cancer in animals with direct inhalation of cigarette smoke. In this type of work smoke itself is used and the tissue challenged is lung, not skin, tissue. While such animal work is suggestive, scientists generally do not apply findings with mice directly to man. Other Factors Extensive research from scientists throughout the world has shown that many factors may be involved in lung cancer and heart disease. Among these are heredity, infection, nutrition, hor-mones, nervous strain or tension, and environment. And perhaps other also are involved. Journal of the American Medical Association In mid-December of last year, the Journal of the American Medical As-sociation had an editorial on "Smoking and Lung Cancer" that said in part: "Neither the proponents nor the oppon-ents of the smoking theory have suffi-cient evidence to warrant the assumption of an all-or-none authoritative position." The editorial referred to an article two weeks previously by Surgeon Gen-eral Leroy E. Burney in which he said the evidence to date implicates smoking as the principal causative factor in the increase in lung cancer. However, the editorial pointed out that "A number of authorities who have examined the same evidence cited by Dr. Burney do not agree with his con-clusions." Beliefs of the TIRC In his 1959 Report, Dr. Little discussed the various aspects of tobacco and health from the scientific standpoint. He noted that many persons, both intelligent lay-men and scientists, will not accept a simple cause and effect relationship in cancer and heart disease unless such a relationship can be proved by something more than disputed statistics, transferred interpretation from animal work, or limited autopsy findings. Neither will they reject a possible role for tobacco along with other environmental expos-ures, until evidence permits a true evalu-ation. Dr. Little said the experiences of the period since the Tobacco Industry Re-search Committee was established amply justify and support these beliefs held by the TIRC and others: 1. Any role of cigarette smoking in lung cancer and certain other dis-eases has not been proved as causa-tive. 2. If tobacco has any role, it is un-certain, unidentified and unanal-yzed. 3. Much more research is needed to help clarify and define the signifi-cant problems, and to determine the best way to find the answers to them. 4. All evidence, including that which demonstrates the gaps and un-certainties and contradictions in our knowledge, should be presented to the public honestly and fully. The individual can form his own con-sidered opinion only on the basis of complete information. In closing, I wish to emphasize that the Tobacco Industry Research Commit-tee will continue with its research pro-gram that is aimed at helping to find the answers to questions about tobacco use and also to contribute in every way that it can to improvement of the public health. P. LORILLARD COMPANY —Continued from page 14 — blending, bulking, mixing, flavoring, cut-ting, drying, making, packing—auto-matic controls or recording devices keep constant vigil to ensure uniform quality to tobacco and cigarettes. From the moment the giant hogsheads of tobacco move on automatic conveyors into the processing area, until the time the finished cigarettes roll out of a making machine at a rate of 1,200 a minute, there is no need for a human hand to touch the tobacco. Everything is handled automatically on specially-designed giant conveyors, from one stage to the next. Built for Flexibility Because of rapid shifts in smokers' tastes—and since king-size, filter-tip and regular cigarettes require different ma-chines and different layouts—the plant was conceived and built for the utmost flexibility. Huge 40 feet by 54 feet bays in the cigarette-making room permit movement of machinery around at will. Air-conditioning and other service lines are above the sixteen foot ceiling and overhead busducts permit electrical connections to be plugged in virtually anywhere. A visitor to the plant is immediately struck by its vastness, stretching as it does more than a fifth of a mile from east to west, facing U. S. Highway 70. Its total area is more than 600,000 square feet and the packing room covers approximately 3% acres, or enough space to accommodate three football fields. Research Facilities The research division is equipped with the most advanced devices for scientific tobacco research and includes seven labs plus an engineering laboratory for ex-perimental work on new types of pro-duction machinery. The control laboratory tests every-thing that comes into the plant and everything that goes out of it—cigarette paper, humectants, colors of packages, flavors, wrappings, etc.—to see that all come up to the Lorillard standards. It also makes continuous tests on Loril-lard and competitive cigarette brands. The smoking laboratory keeps a con-stant check on the draw of the Lorillard cigarettes, both filter and non-filter; sees that the filters are doing the job for which they are designed. The organic research laboratory engages in funda mental research into the basic constitu-ents of cigarette smoke, using a Loril lard-designed 36-unit "smoker" which is continuously "puffing away" at three dozen cigarettes at a time. The leaf analysis and special projects laboratory analyzes all the leaf tobacco purchased by the company and tests samples of leaf prior to leaf market opening to give the company's leaf men an indication of what and where to buy. This laboratory follows samples of the various tobaccos through the aging processes, to determine what happens to the tobacco at every stage; it then sets the precise period for perfect aging of each batch, instead of using arbitrary time limits for this process. The Kjeldahl and titration labs deter-mine nicotine and nitrogen content of various tobaccos and the quality control lab follows the tobaccos and cigarettes through various stages of manufacture to keep a rigid check on such factors as moisture content, weight and density filter draw and seal on wrappings. Huge Operation The P. Lorillard Co. of today is a national firm on a scale that its origina tors could never have possibly conceived. From the Lorillard Building, a sky-scraper at 200 East 42nd Street, New York City, into which the company moved its headquarters last year, _ its executives are in constant communica-tion with factories and leaf plants in the Southland and with the many hundreds of members of the sales organ ization. These latter keep Lorillard products on tobacco retail counters, in food and drug stores, in vending ma-chines and, in fact, in virtually all of the 1,400,000 retail outlets through which cigarettes now are sold. More than ever today, when dozens of brands and types of cigarettes compete for the favor of American smokers, the Lorillard sales organization plays a vital role in the company's planning and policies. Working in coordination with the company's advertising and market-ing men, the headquarters and field sales forces see to it that the Lorillard brands are available when and where the con-sumer wants them. The company today follows the same basic principles laid down by the found-ing Lorillard family: "Make the best pos-sible product; advertise it so everyone will know it's available; keep making i1 better." —See P. LORILLARD CO., page 24- WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 23 Robersonville's Southeastern Tobacco Company is Located in the Heart of the Belt Southeastern Tobacco Company, Rob-ersonville, North Carolina is ideally and centrally located in the heart of the largest tobacco belt. Established in 1918 and previously operated under other management, this company was re-or-ganized for improvement in 1944; since then it has become the present-day Southeastern Tobacco Company. Services rendered by Southeastern To-bacco Company are many. Beginning with the Georgia and Florida openings, Southeastern buys for various accounts through its organizations located in Statesboro, Claxton, Metter, and Alma, Georgia. Some of the tobacco bought in Georgia is shipped to customers in Vir-ginia, the Carolinas, and Kentucky for the manufacture of cigarettes. Part is shipped to their dealer and export cus-tomers, and the remaining is kept by Southeastern in Eobersonville for their own use in redrying and reselling. Also, along with types of bright leaf tobacco from North Carolina, some is shipped after being baled to parts of Pennsyl-vania for cigar purposes. Experienced buyers man these markets being sent from Robersonville to buy to the exact specifications of the customers. When the Carolina markets open, these men and other personnel return to Robersonville and outlying markets in the Carolinas to begin the buying and redrying process over again. Southeastern has facilities to redry 125,000 pounds of green tobacco daily. This tobacco is purchased and graded with extreme care. Then it is picked and blended and redried. After the redried to-bacco is packed in containers, it is weigh-ed and tagged for shipment or for storage. Southeastern has ample and modern storage facilities to accommo-date its customers. At Southeastern no order is too large or too small to be given the best attention of the com-pany's experienced personnel; and South-eastern can pack all types of tobacco suitable for foreign and domestic trade. After the Eastern season closes South-eastern Tobacco Company makes its buy-ing facilities available to customers in the Burley tobacco district. They cover markets in Madison, Indiana; Ripley, Ohio; and Covington, Kentucky. Buying orders are solicited and welcomed on these markets. To regular customers and other in-terested firms Southeastern offers a com-plete sampling service. Much care is taken to see that samples are fully rep-resentative of the lots of tobacco sampl-ed. Upon request samples are promptly dispatched with a written note that order and packing of all lots are guaranteed. Southeastern is staffed with people who know tobacco. Oscar Burch is presi-dent and manager. J. Elliott Barnhill is assistant secretary and treasurer. J. Hubert Williford is factory superinten-dent. Buyers are Billy N. Warren, John D. Jenkins, and Melvin G. Farmer. Others working at Southeastern are Billy J. Crawford, receiving and ship-ping; John M. Matthews, processing; and Shelby A. Council, office. In addition to these year-round employees, the com-pany hires about 250 workers seasonally; and during the past four years South-eastern has paid out approximately Tobacco arriving at plant for processing from the various markets. Side view of Southeastern Tobacco Company, Robersonville. Regrading leaf tobacco for processing, PAGE 24 THE E. S. C. QUARTERLY WINTER-SPRING, 1960 $400,000 in wages and salaries. So be-sides the good business reputation this company maintains, it is also an econ-omic factor in the financial welfare of Robersonville. As packers, dealers, and exporters of all types of leaf tobacco, Southeastern Tobacco Company is a thriving business and a credit to the tobacco industry. LAND OF PLENTY —Continued from page 20 — Virginia-North Carolina area produced the lightest, brightest leaf. The area, limited in extent, became known later as the Old Bright Belt. Then, apparently as the result of an accidental discovery, it was found that charcoal used in open fires cured the leaf to a "proper yellow." The farmer, Abisha Slade, in whose barn in Caswell County the discovery had taken place in 1839, became an active missionary for charcoal curing. After the War Between the States in-terest was revived in an experimental method of curing through heat con-ducted by flues. The imperfect flues of the pre-war period were improved and open-fire curing was discarded. At that time in North Carolina's history the most important agriculturist was Major Robert L. Ragland. He was a scientific breeder of Bright tobacco, the developer of a basic curing formula and a teacher of farmers. By the time he had com-pleted his work, flue-cured leaf was well on its way to becoming the world's lead-ing tobacco type. And the major concen-tration of the type was in North Caro-lina. Machines and Men Meanwhile, cigarettes were moving up in production. They first reached the billion mark in the United States in 1885. Machinery was being used in the manu-facture of chewing and smoking tobacco and in packaging the latter. The most important mechanical discovery of the period, in relation to the tobacco indus-try, was the invention of James A. Bonsack, then in his late 'teens. He patented a cigarette-making machine in 1880. It was soon in practical use in North Carolina. After some adjustments and improvements were made, the mech-anism could deliver 120,000 cigarettes in a working day. This quantity equaled the labor of 40 or more hand rollers. All the elements for an increase in the production of cigarettes were now avail-able : a highly desirable leaf, a cigarette-making machine which worked, excel-lent transportation facilities, a depend-able labor market, a number of energetic manufacturers—and a consumer demand which continued at a slow but steady pace up to the period of World War I. Then, after the war, the rate growth of the cigarette industry became spectacular. Tobacco was the basic commodity of the first American colonial enterprise. For a long time now the business of pro-ducing, manufacturing and merchandis-ing tobacco has been a major industry in the United States. Yet, during these busy years of growth, the social uses of tobacco have often come under attack. This was hardly a novelty; the first attack against smok-ing started some 350 years ago. Since then the hate campaigns against tobacco have come in cycles and based on various reasons. Critics were always more out-spoken than tobacco's admirers, although literature abounds with poetry and prose praising tobacco as giving solace and inspiration. When in 1958 The Tobacco Institute, Inc. was formed, among its purposes were to promote better public under-standing of the tobacco industry and its place in the national economy, and to compile and disseminate information re-lating to the industry and to the use of tobacco products. The Institute is comprised of the major tobacco manufacturers in the United States. These firms produce about 99 percent of the nation's tobacco goods. In the course of its operations the Institute has published an illustrated brochure, Tobacco—A Vital U. S. Industry, a port-folio of individual reports on manufac-tured products and other informational material. The subject of North Carolina has a prominent place in these publications. For there is no basic phase of the indus-try in which North Carolina does not share. And, as other articles in this issue of the Quarterly indicate, its share is predominant in many areas of agricul-tural and manufacturing activity. Some data, derived chiefly from the Institute publications, will be of interest here. These go beyond mere statistics. For it should be remembered that tobac-co cannot grow long by itself. It is not machines alone that produce goods. Be-hind the hard figures lie people. The Broad Scale of Operations There are, for instance, around 750,- 000 farm families in the tobacco-growing districts of the United States. The big-gest community of tobacco farmers is in North Carolina. Together with their many helpers they produce the major portion of the 1,079 million pounds har-vested in the United States in 1959 from 696,300 acres. This abundant cash crop is now bringing over $1 billion to its growers. From the time that tobacco goes to market, its care and disposition re-quires a very large labor force: auc-tioneers and warehouse workers, men and women in stemmeries, men in prizer-ies and redrying plants and transporta-tion services. These operations of the industry take place in 166 communities where some 900 auction warehouses are located. —See LAND, page 26— P. LORILLARD COMPANY —Continued from page 22 — History of Tobacco The history of P. Lorrillard Co. is vir-j tually the history of tobacco manufac-ture in America. Pierre Lorillard opened his shop and factory in 1760 on New York's Chatham Street and his business got its first big spur from the American Revolution which cut off tobacco im-ports from England. The family dynasty had its beginning when he brought his sons, Peter (Pierre II) and George into the business in 1780. They put the firm into real mass produc-tion and made its products nationally known. In 1789, the brothers published the company's first known advertisement in New York's "Daily Advertiser." From this ad developed the Lorillard principle "advertise the product so everyone will know it's available." Three years later, they moved their main factory to the wooded banks of the Bronx River and built a new snuff mill that harnessed the swift-flowing waters to turn the wheels of its machinery. This mill was to be the heart of the Lorillard empire until manufacturing was aban-doned there in 1870. In the 1820's and 1830's Peter and George Lorillard printed thousands of broadsides listing their products and in-vited every postmaster in the United States to handle them. Hundreds agreed and national distribution of branded to-bacco products was achieved for the first time. Pierre Lorillard III took over the reins of the business in 1843 after his father and uncle had passed away. He expanded the business and shifted production more and more to chewing and smoking tobaccos. In 1870, the main manufactur-ing facilities were relocated in Jersey City, N. J. Adopted Tin Tag Troubled by imitators of his plug brands, Pierre III clamped a tin tag to his tobacco and introduced the appro-priately named brand, Tin Tag. In 1890, plug was the most important branch of the industry next to cigars and because of Lorillard's importance in this field, Pierre IV insisted that the family name be continued and the business operated as a separate organization when the to-bacco trust was formed. The dissolution of the trust in 1911 gave Lorillard, in addition to its manu-facturing properties and its various to-bacco and cigar brands—Van Bibber and Between the Acts—the Murad, Helmar and Egyptian Deities cigarette brands. The nation's oldest tobacco manufac-turer entered the blended cigarette busi-ness in 1926 with the introduction of Old Golds. Initial marketing efforts included the "Blindfold test," the use of cello-phane wrappers, the first coast-to-coast radio hookup, Old Gold puzzle contests and such slogans as "Not a Cough in a Carload." The Old Gold established Lorillard as —See P. LORILLARD CO., page 25— WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 25 E. V. Webb & Co., Inc., is Kinston's Oldest Leaf Tobacco Firm, Established 1895 E. V. Webb & Company, Inc., was originally established in 1895 and is the oldest leaf tobacco firm operating in Kinston. The plant is housed in a spacious three story brick building, with all stor-age facilities located on property ad-jacent to the main factory building. In addition to the regular operations of hanging and packing tobacco in bundles, this plant has facilities for screening and picking Georgia leaves. Two Proctor & Schwartz redrying machines prepare the processed tobacco prior to its being-packed in hogsheads for storage. In addi-tion to this equipment, in 1956 E. V. Webb & Company re-entered the stem-ming field with the installation of mod-ern stemming equipment. This equipment has been modernized since that time with the addition of the latest threshing and separating equipment. This company packs tobacco both in bundles and strips on order and on speculation, for the domestic trade as well as for many for-eign customers scattered around the globe. During the peak of the processing season, running from the middle of August to the middle of November, Webb employs from 300/400 persons in the factory operation. It's officers active in the operation of the firm are Mr. William B. Glenn, President, Thomas H. Harvey, Jr., Vice-President, and Julian B. Mc- Cullen, Treasurer & Assistant Secretary. P. LORILLARD COMPANY —Continued from page 24 — a major manufacturer of blended cigar-ettes. To the regular size was added the post-World War II Old Gold King and later the Old Gold Filter King. Kent bowed in 1952. Lorillard today produces, in addition to its cigarette and cigar brands, Briggs, Union Leader, India House, Friends and other smoking tobaccos and Beechnut and other chewing tobaccos. Production facilities, other than those in Greensboro and Louisville, are located in Richmond and Baltimore. The Federal Tin Co., a subsidiary located in Balti-more, makes cans and containers and prints wrappers for Lorillard products. Leaf processing and storage plants are ilocated in Danville, Va., and Lexington, Ky., and facilities for leaf receiving, [storage and re-shipment to production plants are located in Madison and La- Crosse, Wis., and Lancaster, Pa. Produced Overseas The company's leading cigarette brands are being produced on a royalty or license basis in the Philippines, Venez-uela, Panama and Luxembourg and will be so produced in other countries in the future. Rigid specifications are set for these companies by Lorillard and are supervised by its own technical advisers. Workers are here shown packing the redried bundle tobacco in hogsheads at the delivery end of the machine. These cylindrical wooden containers are generally packed to a net weight of approximately 950 pounds. This is the standard package for shipping tobacco to the many countries abroad which use American flue-cured leaf. This view shows the full sticks of bundle tobacco being placed in position on the feed end of the redrying machine. Workers are shown blending and hanging bundles of tobacco on sticks in preparation for redrying. PAGE 26 THE E. S. C. QUARTERLY WINTER-SPRING, 1960 improving Marketing Practices For Tobacco Show Up In New Problems, Standards By J. H. Cyrus Tobacco Marketing Specialist N. C. Dept. of Agriculture The tobacco industry, upon which the North Carolina farm economy is rooted, has experienced a major revolution dur-ing the last decade. The revolution start-ed in the early 50's when health scares caused a radical shift in consumer de-mand, from no filter to a filter type cig-arette. This devel-opment caught the farmer off guard and made it neces-sary for him to make rapid adjust-ments to meet the new market situa-tion. However, these Cyrus adjustments have not come easy, due to other complicating problems facing the farmer such as spreading disease prob-lems, adjusting to new disease resistance varieties, and adjusting to new culture practices in general. All of these developments have created new marketing problems for the farmer in addition to many of the old ones that had not been solved. For example, the revolution in market demand, new varieties, and culture practices made it necessary to make many revisions in the U. S. Standard grades, upon which the farmers' sale at the market is based. To-bacco growers, who were not too familiar with the Standards at the best, find that the revisions in grades make the job of preparing tobacco for market even more confusing and many growers are satis-fied to get what they can for their to-bacco unsorted. Therefore, many of the buying companies, especially the export buyers, are very critical of the job that many farmers are doing in preparing their tobacco for market. At the same time many growers are failing to get the true market value for their tobacco. Service Program The Tobacco Section, which is a part of the Division of Markets of the North Carolina Department of Agriculture, con-ducts a service program in cooperation with the U. S. Department of Agriculture under the Research and Marketing Act, to assist flue cured and burley tobacco farmers to get a better understanding of the situation, and to improve their preparation and marketing practices. This program is conducted through or-ganized group meetings and demonstra-tions with vocational agriculture teach-ers, county agents, and farm organiza-tions throughout the flue cured and bur-ley tobacco belts of North Carolina. Also, the radio, television, newspapers and magazines are used as a media to get market information to farmers and other interested persons. This service program is divided into two phases, pre-marketing and marketing-service, in order to give farmers the kind of assistance needed at particular times of the year. Pre-Morkering Service The pre-marketing service is rendered upon the request of various farm agencies and organizations during the winter and early spring months, while growers are making plans and preparations for another crop of tobacco. In these meet-ings farmers are given a thorough analy-sis of the current tobacco situation as it relates to stabilization stocks, total supply of tobacco on hand, domestic and export disappearance, changes in con-sumer preference and any other new de-velopments in the industry. This brings the farmers up-to-date with the current problems facing them before they start a new crop, and familiarizes them with Three "hands" of cured tobacco. Difference in grade may be seen even in this black and white print. the trends that will determine the market demand during the following market season. This gives the farmer a better opportunity to adjust his practices to the current situation before the crop is started. Marketing Service During the years of World War II when there was a scarcity of labor and a short supply of tobacco, most farmers got out of the habit of sorting tobacco in uniform grades. The tobacco buyers did not complain about un-sorted or mixed tobacco during those years be-cause of their desperate need for any-thing called tobacco. However, those years are far behind, even though many tobacco growers are slow to realize that fact, and the ever increasing competi-tion from foreign producers of tobacco makes it imperative that our farmers do a better job in preparing their tobacco for market. A marketing service is also provided to aid farmers in improving marketing practices in order to meet foreign competition. The preparation and marketing service is rendered through the request of or-ganized farm groups. This phase of the program begins in July in the North Carolina Border Belt and is continued through the marketing season in the various other belts of the state, and ends in December in the North Carolina Burley Tobacco Belt. In these group meetings, farmers are first familiarized with the basic factors of the U. S. Standard Grades and brought up-to-date with any revisions in grades. Then they are shown through demonstra-tions how to use a simple method of farm sorting, which will make each lot of tobacco uniform enough to fit directly into one of the 172 U. S. Standard grades. Farmers are then assisted in applying the practice on samples of their own crop of tobacco. Proper artificial light-ing is also used to show farmers the importance of good lighting in prepar-ing tobacco for market. Our tobacco farmers must realize that our greatest defense against foreign competition is a quality product well prepared for market, because we cannot compete with foreign producers in price and continue our present standards of living. LAND OF PLENTY —Continued from page 24 — The Flow of Goods and Services The chief part of the tobacco grown on domestic farms is retained in the United States to supply the growing de-mands of American consumers. In 1959 products of nearly 600 cigar factories, 27 cigarette factories and numerous other establishments producing snuff, smoking and chewing tobacco resulted in these totals : 488 billion cigarettes about 7 billion cigars and cigarillos nearly 73 million pounds of smoking tobacco over 67 million pounds of chewing tobacco around 34 million pounds of snuff. Of these quantities more than 19 bil-lion cigarettes were exported and other manufactured goods were shipped a-broad. Foreign buyers took some 470 million pounds of American-grown to-bacco— chiefly flue-cured and burley — and paid around $350 million for this desirable leaf. Some 2,500 wholesalers channel to-bacco goods to 1.5 million retail outlets in the United States. Retail sales of tobacco products in the United States for calendar 1959 totaled $6.8 billion. The fiscal value of this trade ranks third among the federal sources of revenue. The national government, state and mu-nicipal treasuries get a healthy slice of the retail sales total: $2.7 billion in 1959 The tobacco industry is heavily de pendent upon suppliers and transporta-tion services. Materials flow to tobacco manufacturing centers from almost all —See LAND, page 51 — WINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 27 ROYSTER Bright Leaf Warehouse Association Began In 1925 The Bright Belt Warehouse Associa-tion, Inc. is a voluntary trade association representing flue-cured tobacco ware-housemen in the states of Florida; Geor-gia; Mullins, South Carolina; North Carolina and Virginia. The Association has been operating since 1945. Its governing body consists of thirty members, six from each of the flue-cured tobacco belts. Officials this year are: A. J. Brannen, Statesboro, Georgia, President; Harding Sugg, Greenville, North Carolina, Vice Presi-dent; Guy E. Barnes, Eocky Mount, North Carolina, Treasurer; Colonel William T. J o y n e r, Raleigh, North Carolina, Gen-eral Counsel; and Fred S. Royster of Henderson, North Carolina, is the Association's Managing Director. The flue-cured area is divided into five belts, namely, Georgia-Florida; South Carolina-North Carolina Border; East-ern North Carolina; Middle Belt, consist-ing of markets in central North Caro-lina; and the Old Belt, consisting of markets in piedmont North Carolina and all markets in the State of Virginia. The markets operate in the various belts on a staggered basis with the most south-ern markets opening first and the other belts at succeeding intervals of one to two and one-half weeks. The marketing of flue-cured tobacco is a complicated procedure and the Bright Belt Warehouse Association promulgates rules and regulations or orderly opera-tion of the markets. These rules include hours per day which the markets may operate, proper spacing of tobacco on the warehouse floors and many other matters for the protection of both seller and buyer. Flue-cured markets operate efficiently and in a very satisfactory manner. The 1959 season was probably the most satisfactory ever experienced. In addition to regulations governing the various markets, the Bright Belt Warehouse Association has been instru-mental in the maintenance and improve-ment of the tobacco program. The As-sociation cooperates very closely with farm organizations and other trade as-sociations in the interest of the overall program. The most recent illustration of this is the prominent part which the Association played in obtaining federal legislation for the continuance and im-provement of the tobacco program. Approximately one-third of flue-cured tobacco produced in America is exported —See WAREHOUSE, page 30— E. B. Ficklen Tobacco Co. One Of Oldest Companies Serving All Phases Of Tobacco Trade Continuously E. B. Ficklen Tobacco Company, Inc., established in 1896, is one of the oldest companies continuously serving all phas-es of the tobacco trade. This company buys tobacco on the Georgia and Eastern Carolina Flue- Cured belts, and their three Proctor & Schwartz redrying machines, having a daily capacity of 500,000 pounds, ex-pertly redries and packs the tobacco in hogsheads and /or cases as desired by their customers. The main plant is in Greenville, North Carolina with buy-ing agencies in Nashville, Georgia; L. S. FICKLEN Madison, Florida; Smithfield, North Carolina; Clinton, North Carolina; and Farmville, North Carolina. The com- ^^ pany also handles b u r 1 e y tobaccos, Maryland tobaccos, and any and all types needed by their customers. Over the past sixty - four years this company has been shipping tobac-co to all parts of the world. In addition to their own buying and redrying facilities they have an interest J. S. FICKLEN in eight other tobacco companies and are therefore in a position to more ade-quately serve the tobacco trade. With seven storages for redried tobac-co, all located in Greenville, North Caro-lina, the company has ample storage facilities to care for tobaccos purchased by their customers until the customer de-sires it to be shipped. During the tobacco season the company employs between 500 and 600 people carefully picking, blending, redrying, and packing tobacco in an expert man-ner. Founded by Mr. E. B. Ficklen, who served as its head until his death in 1925, the company is well versed in all branches of the tobacco industry whether it be domestic or foreign. In 1925 Mr. James S. Ficklen was elected as Presi-dent and headed the company until his death in September, 1955. L. S. Ficklen, a son of the founder, was elected President of the company in October, 1955 and is being very ably as-sisted by James S. Ficklen, Jr., who is Vice President and Treasurer of the com-pany. The other officers are well known throughout the tobacco trade and are A. C. Ruffin, J. T. Cheatham, Jr., and C. C. Skinner, Vice Presidents; O. L. Alexander, Secretary; and E. O. Parkin-son, Jr., Assistant Secretary. L. S. Ficklen and James S. Ficklen, Jr. both are well known throughout the to-bacco industry through their activities in organizations promoting the use of —See FICKLEN, page 33— E. B, Fitklin Tobacco Plant,, Greenville PAGE 28 THE E. S. C. QUARTERLY WINTER-SPRING, 1960 Plant Manufactured First American Cigarette Paper On September 2, 1939 Now Diversified! With two decades of continuous prog-ress in the background, the Pisgah Forest operation of Olin Mathieson Chemical Corporation moves ahead in its twenty-first year as a diversified industry of stature. From the manufacture of cigarette paper, the original and ever-important product, the operation has expanded to manufacture of such products as cello-phane, polyethylene, cigarette niters, end papers and home permanent waves, woven belts for machinery, one-time car-bon papers, cigarette tipping papers and plug wraps, and the new and improved qualities of lightweight printing papers. It was little more than two decades ago when the late Harry H. Straus, founder of Ecusta Paper Corporation, saw his envisioned manufacturing plant become a reality in Transylvania County. On September 2, 1939, the first paper machine rolled off the first paper to be manufactured here for the American cigarette market. The plant had four paper machines in operation just as the outbreak of World War II foretold the end of im-porting cigarette papers from Europe. Addition of four more machines in the early years of the war put the plant in position to supply a substantial part of the paper requirements of a tobacco in-dustry faced with demands for more production volume than ever. There were approximately 350 persons engaged here in the manufacture of top quality cigarette paper 21 years ago. From that small beginning the company has seen many changes, each constitut-ing growth. When the four original paper machines were in production and the plant was nearing full operation, the employment had increased to 950 persons and the annual payroll to $1,- 200,000. It increased proportionately when, in 1941, the four additional machines were added. Today, there are approximately 2,500 employees in the two divisions at Pisgah Forest. The payroll is 10 times that of 1940—$12,000,000 a year. As employ-ment increased about 163 per cent in the 20-year period, the payroll increased 900 percent. Specialty papers were developed for the U. S. Government during the war. The company, expanding from this ex-perience, entered the Bible and printing paper fields after the war. A ninth paper machine was added in 1947 to handle increases in orders for the lightweight papers. From a corporate standpoint, one chapter ended and another began when Mr. Straus sold his interests in Ecusta to Olin Industries in 1949. The plant became known as a subsidiary of Olin Industries. Association with Olin brought forth a significant development—construction of facilities to manufacture cellophane and, on June 11, 1951, the casting of the first cellophane at Pisgah Forest. The Film Division, with nine casting ma-chines in operation, utilized many of the Paper Division's existing facilities. The Film Division reached another milestone with the start of production of polyethylene in December, 1954. The same year, the corporate status changed again as Olin Industries merged with Mathieson Chemical Corporation, forming the Olin Mathieson Chemical Corporation. In 1958, the Pisgah Forest operations became part of the Packaging Division, one of seven major divisions of Olin Mathieson. Growing markets due to higher con-sumption and population increases led in the mid-1950's to a market survey and, ultimately, the recommendation to build a new paper machine. A realty as of August 27, 1958, the No. 10 paper ma-chine, named The Cherokee Arrow, and its stock preparation equipment are im-portant units in the company's facilities to produce lightweight papers and car-bonizing tissues. Recent announcement of a special lightweight paper produced by Ecusta exemplifies the growth of product varie-ties. This paper, sold under the name Ecusta Waylite, is expected to play a significant role in the printing industry, and is further expansion of the Waylite line designed for today's needs. The establishment of the Paper Divis-ion at Pisgah Forest in 1939 provided the first large scale production of cig-arette paper in this country. Previously American cigarette manufacturers were dependent on imports of cigarette paper from foreign sources. The Film Division plant was built on the same location be-cause of the excellent water supply and other existing facilities of the paper plant. Both the paper mill and the cellophane plant are very modern, and are model operations in many respects. Pure water is of utmost importance in cigarette paper and cellophane manu-facturing processes. The water treating plant has a capacity of 25 million gal-lons— daily enough to supply a city of 150,000 inhabitants. To make these ope
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|Publisher||Raleigh, N.C.: Employment Security Commission of North Carolina,1947-1975.|
|Rights||State Document see http://digital.ncdcr.gov/u?/p249901coll22,63754|
|Digital Characteristics-A||56 p.; 14.86 MB|
|Digital Collection||North Carolina Digital State Documents Collection|
|Title Replaces||U.C.C. quarterly**|
|Pres File Name-M||pubs_serial_escquarterly19581960.pdf|
|Pres Local File Path-M||Preservation_content\StatePubs\pubs_serial_escquarterly|
^V M ^» « — Raleigh
The E. S. C. Quarterly
VOLUME 18, NO. 1-2 WINTER-SPRING, 1960
Employment Security Commission of North Carolina
Cover Legend Page Two Index On Page Eleven
PAGE 2 THEE. S.C. QUARTERLY WINTER-SPRING, 1960
The E. S. C. Quarterly
(Formerly The U.C.C. Quarterly)
Vol. 18, No. 1-2 Winter-Spring, 1960
Issued at Raleigh, N. C. by the
EMPLOYMENT SECURITY COMMISSION OF
Commissioners: Mrs. Quentin Gregory, Halifax; Dr. Maurice
Van Hecke, Chapel Hill; R. Dave Hall, Belmont; W. Benton
Pipkin, Reidsville; Bruce E. Davis, Charlotte; Crayon C.
State Advisory Council: Public representatives: James A.
Bridger, Bladenboro, Chairman; Sherwood Roberson, Rob-ersonville;
W. B. Horton, Yanceyville; Mrs. R. C. Lewel-lyn,
Dobson, and Dr. J. W. Seabrook, Fayetteville; Em-ployer
representatives: A. L. Tait, Lincolnton and G.
Maurice Hill, Drexel; Employee representatives: Melvin
Ward, Spencer, AFL and H. D. Lisk, Charlotte, CIO.
HENRY E. KENDALL Chairman
R. FULLER MARTIN Director
Unemployment Insurance Division
JOSEPH W. BEACH Director
North Carolina State Employment Service Division
TED DAVIS Editor
Public Information Officer, Member PRSA
MARTHA JACKSON Associate Editor
Sent free upon request to responsible individuals, agencies,
organizations and libraries. Address: E.S.C. Informational
Service, P. O. Box 589, Raleigh, N. C.
INDEX APPEARS ON PAGE 11
ABOUT THE COVER PICTURES
Top, left, shows workers pulling tobacco plants from tobacco bed prior to
transplanting them in the fields. These may be transplanted by hand or
Top, right,, in this hand are enough tobacco seed to furnish plants for
four acres of tobacco.
Center, left, worker holds up a perfect leaf of tobacco. This green tobacco
is tied on sticks prior to being put in the barn for curing.
Center, right, these trucks are moving the tobacco hogsheads (about 900
pounds of cured tobacco in each hogshead) to cigarette factories after
Lower, left, here is the interior of an auction warehouse and shows the
shallow baskets of tobacco laid out in long rows marked with the owner's
name and the certified weight of the tobacco in each basket.
Lower, right, auctioneer, with upraised hand, chants the prices bid for
tobacco. Buyers for tobacco companies move along with him examining
the tobacco and bidding on each individual basket.
TO FEATURE FURNITURE INDUSTRY
North Carolina's rank in the manufacture of furniture
is at or near the top in the entire nation. The position
would probably depend upon the classifications of furniture.
The span of the furniture in this State runs from "com-petitive"
pieces to the finest "name" suites to be had
anywhere in the world. Tarheel manufacturers of furniture
number in the hundreds and a story about each will appear
in the next edition of THE QUARTERLY.
Requests for copies of the "Furniture Edition" are now
being accepted. The issue will probably be in great demand,
so our supply of "extra copies" will be parceled out on a
first-come-first-served basis. Should you be a subscriber,
there is no need for you to request a copy as you will
receive yours at the address to which your copy usually
Henry E. Kendall, Chairman
Employment Security Commission
Tobacco is the nation's oldest industry, with more than
three million people engaged in producing, manufacturing)
and distributing it. Last year some 65 million Americans!
bought 436 billion cigarettes, 6.4 billion cigars, 74 millionl
pounds of smoking tobacco, and 35 million pounds of snuff.j
Featuring the tobacco industry in this edition of thtl
QUARTERLY brings up-to-date the 1951 edition whicr|
spotlighted the weed. North Carolina raises two-thirds of all
the flue-cured tobacco grown in the world. More tobacccj
products are made in North Carolina than in all the othei;
With approximately the same number of acres of tobaccc
being grown each year, only the yield per acre affects the
State's position in its percentage compared with other sec
tions of the world.
There are 32,185 people employed in the tobacco industrj
in North Carolina who are covered by unemployment insur
ance and come under the Employment Security Law.
Federal taxes on tobacco and tobacco products in a single
year amount to more than $1.7 billions. Additional taxes col
lected by State and municipal treasuries from tobacco sol<
at retail total more than $700 millions.
Ever since tobacco was first discovered to be a "mone:
crop" it has gone a long way toward underwriting the cos
of the government. The credit of the Continental Congres
was supported by a loan on tobacco leaf. Benjamin Franklh
helped obtain the loan of some 2 million livres from th
French tobacco monopoly which was to be repaid by 5 millioi
pounds of leaf tobacco.
For many years the economy of North Carolina was de
pendent upon the tobacco crop and textiles. A bad crop coul
be felt by every citizen, and when combined with layoffs ii
the textile industry could be devastating.
In recent years the State has begun diversifying its indus
try. Commercial vegetable crops have come to the forefron
in farming, and today account for an amazing number o
dollars for growers. Poultry raising has become popular an
North Carolina is near the top in the production of broilers
A recent survey shows that in the past nine years thi
tobacco industry has put more than $314 millions in capita
outlays into new manufacturing, processing and researc
facilities. This was done to keep pace with consumer require
ments and to provide better products.
The industry is budgeting about $80 millions during 196C
61 for further expansion and improvement.
In the use of tobacco, countries having the highest pe
capita use in pounds are: U. S., 8.6; Canada, 7.2; Netherland
6.0; Belgium, 5.8; Australia, 5.5; Switzerland, 5.3; Denmarl
5.2; Ireland, 5.1; United Kingdom, 4.9; New Zealand, 4
West Germany, 3.9; and Norway, 3.0.
Also in this issue you'll find stories of other industries i
the State, our Business Machines Unit, an East Coast Far
Pattern meeting, and other notes on activities of yo
Employment Security Commission.
VINTER-SPRING, 1960 THE E. S. C. QUARTERLY PAGE 3
I J. Reynolds, Largest In Industry . . . Still Continues To Grow And Expand
R. J. Reynolds Tobacco Company,
Vinston-Salem, already the largest in
he industry in sales, continues to
In the last three years alone, Reynolds'
have totaled nearly
$75,000,000 to ex-pand
for the manufacture
of cigarettes and
the processing and
storing of leaf to-ga