Tobacco

Contrary to the general idea insisted upon by retail tobacco dealers, the American Tobacco Co. is not "by far the most potent of U. S. Tobacco manufacturers." It certainly is potent. For the year 1925 its net income was $22,238,596, net working capital $87,531,654, cash $19,194,515, inventory $66,897,803. Liggett & Myers is also potent. The same year its net income was $15,289,652, net working capital $98,545,146, cash $18,080,236, inventory $75,088,039.

But the most potent is the R. J. Reynolds Tobacco Co. Recently its Chairman William N. Reynolds and President Bowman Gray looked over last year's balance sheet. There was satisfaction, for R. J. Reynolds during that twelvemonth earned net $25,221,579. On Dec. 31 their net working capital was $105,999,434, cash $8,024,866 and inventory $97,168,844. Their net income was the equivalent of $7.44 on $80,000,000 combined common and Class B common of $25 a share, better than their 1924 equivalent of $6.99.

The 1925 tobacco business was enormous and profitable. Twelve firms--R. J. Reynolds, American Tobacco, Liggett & Myers, P. Lorillard, American Cigar, General Cigar, Consolidated Cigar, U. S. Tobacco (snuff), G. W. Helme (snuff), American Snuff, United Cigar Stores (retailers) and Schulte Retail stores--aggregated net incomes of $96,154,158. This was an increase of nearly 14% over total profits of 1924, of about 28% over 1923 and about 29% over 1922.

Nearly 80 billion (80,000,000,000) cigarets were sold (71 billion in 1924) ; 6 1/2 billion cigars (slightly less than in 1924) ; 37 3/4 million pounds of snuff (3% less than in 1924) ; smoking tobacco 372,431,572 pounds (374,022,036 in 1924).

Usually towards the end of the year there is a recession in tobacco production. April usually marks the resumption of heavy output. But not so this year. With cigaret production as a good indicator, the January record was about 4.4% higher than that of January, 1925; February 9.8% and March 21.7% above their respective months of 1925. So far this year 20,820,393,746 cigarets have been made and taxed by the internal revenue bureaus--12% more than in the first quarter of last year.