Cigarets: Fewer & Cheaper

When 119,624,909,917 cigarets were produced last year against 119,038,841,560 in 1929 tobacco men hailed it as an indication of their industry's ability to withstand Depression. Last week, however, this stout business suffered a reversal. It was announced that July production was 10,705,532,520 cigarets, a decrease of 9.7% from July 1930. One reason for the sharpness of the decline was that during June the wholesale price was upped, retailers given a period of grace during which they stocked up. Also, July 1930 was the industry's best month ever. Nevertheless the decrease was so large that 1931's cigaret record, until now ahead of last year, shows a 1.06% drop from the first seven months of 1931.

That price may have a big bearing on cigarets during Depression was illustrated last week by the case of Philip Morris & Co., Ltd. For a long time this company has had the sales rights and, through an affiliated holding company, controlled the production of several prominent cigarets (Marlboro, English Ovals, Dunhill, Players) and pipe tobaccos (Revelation, Barking Dog). For about two years it has turned out a Paul Jones cigaret selling at 10-c- for a standard package of 20. By not advertising it, the company has saved nearly 5-c- a package on Paul Jones, kept quality up. Last week more & more retailers were asking for Paul Jones, new machinery was being installed in the Richmond factory, production was increased to 14 hours a day. The present production of 15,000,000 a week goes mostly to New England, Ohio, Indiana, Iowa, Kentucky, Wisconsin, Minnesota, Michigan. A few United Cigar and Schulte stores handle Paul Jones in Manhattan and it is to this area that the increased production is expected to go, with other big cities to be added later. Although Paul Jones may be featured in window| displays Philip Morris & Co. still does-ot expect to advertise, hopes to prove the 10-c- price alone will reap its reward.

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