• U.S.

Business: Reynolds’ Record

3 minute read
TIME

Rare is the corporation president who, taking office in 1931, can point to his first year as record high in the company’s profit history. But such is the accomplishment of large, suave, meticulous Samuel Clay Williams, who became president of R. J. Reynolds Tobacco Co. in June 1931. Last week Mr. Williams reported net 1931 earnings of $36.396,816. The previous high (1930) was $34.256,665. In contrast to his predecessor, Bowman Gray (now chairman) who is a great tobacco sales man, and to William N. Reynolds, executive committee chairman, who is a great tobacco buyer, Mr. Williams must be de scribed as a great tobacco lawyer. He was born on a North Carolina farm and always had more fun watching his father’s lumber mill and cotton gin than he did doing chores. Moving from the practice of law in Greensboro, N. C. to Reynolds’ assistant general counselship, he dropped the assistant portion of the title in 1921, added a vice-presidency in 1925. Now 47, he conceals beneath a soft North Carolina drawl a hair-trigger mind and a hair-splitting passion for accuracy in both spoken and written word.

Reason for Reynolds’ record lay partly in the depression-resist nature of the to bacco business, partly in the Camel boom resulting from the famed humidor (cello phane) pack. Introduced Jan. 2. 1931. to the accompaniment of a $50,000 prize contest for most moving description of its advantages, the cellophane-wrapped Camel occupied the cigaret-publicity spot light which George Washington Hill of American Tobacco Co. had previously almost monopolized. Exactly 952.228 U. S. citizens submitted letters testifying to Humidor Pack merit.

But credit must also be given to the cigaret itself, which (all brands) increased from about 47 billion cigarets produced in 1920 to nearly 120 billion in 1930. Since 1922 the Big Cigaret Three (American Tobacco, Reynolds, Liggett & Myers) have collectively and individually made every year a record year. From the Reynolds report cigaret vitality has apparently survived 1931 doldrums.

Meanwhile George Washington Hill, whose spectacular year of personal accomplishment was 1930 (during which his American Tobacco Co. first exceeded the highest net earnings of the entire, old monopolistic American Tobacco Co.), remained greatest tobacco earner. His 1930 earnings—$43,298,000—topped Reynolds by $9,000,000; and last month he said that the first ten months of 1931 had been more profitable than the corresponding months of 1930. Yet if cellophane wrapping be accepted as great 1931 cigaret milestone, Mr. Hill with about 20,000,000 advertising dollars played second fiddle to Mr. Williams with probably not more than $16,000,000. Which raised but did not answer speculation as to what Mr. Hill will do next.

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