Automatic Age

Issue: 1942 April

OPA REPORTS ON CIGARETTE PROFIT STUDY Vending Machine
WHICH LED TO CONTINUANCE OF CEILING GANDIES
Results of an investigation of
the cigarette industry which led
the Office of Price Administra­
tion to continue its “ceiling”
over manufacturers’ prices at
the levels of last December 26,
1941, were made public March
24 by Acting Price Administra­
tor Hamm.
At the same time, Mr. Hamm
issued an amendment to the cig­
arette schedule (No. 62) allow­
ing manufacturers to revise any
temporary sales promotion pro­
grams and to adjust prices in
the event that the present Fed­
eral Internal Revenue tax on
cigarettes should be raised.
Income Higher In W ar
The OPA report, based on a
cost and profits study which em­
braced the accounts of eight
companies producing approxi­
mately 95 percent of all ciga­
rettes made in the United States
in 1941, reveals among other
things th a t:
1. Average net income (before
income taxes) of five of the lead­
ing manufacturers — American
Tobacco Co., including its sub­
sidiary American Cigarette &
Cigar Co.; Liggett & Meyers To­
bacco Co.. P. Lorillard Co.;
Philip Morris & Co., Ltd., Inc.;
and R. J. Reynolds Tobacco Co.
—rose from 17 percent of the
average book value of their in­
vested capital in the pre-war
years 1936-39 to over 21 percent
in 1941.
Sales Are Up
20
Per Cent
2. Current cigarette sales are
running 20 percent above the
corresponding levels of 1941 and
indications are that, because of
the increase in national income
and enlargement of the armed
forces, this rate of increase
likely will continue.
3. Manufacturers’ 1941 profit
margins average 55 to 60 cents
per thousand on standard price
cigarettes.
4. While the current cost of
producing and selling standard
price cigarettes is from 10 to 16
cents per thousand above the
average cost last year, more than
half of these higher costs will be
offset by the considerably greater
volume of sales. In this connec­
tion, the report says, “It thus
appears from the figures of
the manufacturers investigated,
which constitute about 95 per­
cent of the industry, that, in
spite of the recent cost increases,
the cigarette industry will con­
tinue to make very substantial
profits.”
made specially fo r
Vending Machines
W e hav e plenty o f
SALTED PEANUTS
AND MIXED NUTS
Also
American Made
Charms
PAN
C onfections
345 W . E R IE S T R E E T
C H IC A G O , IL L .
Any C ut to G row ers Held
Unnecessary
Major conclusion drawn from
the investigation is that the es­
tablished maximum prices are
fair and equitable and (as an­
nounced on February 27) will
be continued in effect. In issu­
ing the report, the acting price
administrator stated “Mainte­
nance of present manufacturers’
prices for cigarettes should not
depress prices paid to tobacco
growers. Even in the depths of
the depression, leading cigarette
manufacturers averaged 9.5 per­
cent on their invested capital
before taxes and are now aver­
aging over 21 percent. In view
of such profits, a cut in prices
paid to tobacco growers cannot
be justified on grounds of neces­
sity.”
Now — As Always
O PERA TO RS’ H EAD Q U ARTERS
IH T H E B U L K V E N D IN G F IE LD
★ A lt h o u g h
bulk venders has greatly given
way to the defense of our coun­
try , we a re s till anxious to
extend every possible coopera­
tion to o p e ra to rs.
AUTOMATIC
P H O T O G R A P H Y
April, 1942
© International Arcade Museum
AUTOMATIC AGE
W e urge
that you direct your questions
and problems to our attention,
and keep abreast of the field
through
The
rem arkable
eoln-operated
P H O T O M A T IC
m achine, a w orldw ide publie fa v o rite , au to m a ti­
c a lly ta k e s, fram es and d e liv e rs a fine personal
p ictu re in only 40 seconds! R e q u ire s no a tte n d a n ts:
v ery lit t le w eekly se rv ic in g .
P R O V E N a steady
m oney-m aker.
in v e stig ate
w ith ou t
o b lig atio n .
In te rn atio n al Mutoscope Reel C o ., In c ., 44-03 l l t h
S t .. Long Islan d C it y , New Y o r k .
p ro d u ctio n of
our
publication, The
Northwesterner.
THE NORTHWESTERN CORPORATION
OEAST ARMSTRONG STREET, MORRIS. ILL
7
http://www.arcade-museum.com/
CM—CONSERVATION OF MANPOWER
IN U. S. WAR INDUSTRIES
CM stands for the Conserva­
tion of Manpower in United
States War Industries. CM is a
war movement primarily aimed
at increasing war production by
preventing the work accidents
that slow down the whole war
machine. CM as much as any
single factor in our war effort
can help win the war!
The Conservation of Man­
power movement is the idea and
the function of the United States
Department of Labor. Nearly
two years ago, the Secretary of
Labor appointed a national com­
mittee, composed of safety ex­
perts from private industry,
labor representatives, and State
officials. (National Committee
for the Conservation of Man­
power in Defense Industries.)
Out of this committee flows an
organization of eight regional
and over four hundred district
and local representatives, all
qualified to render the highest
type of safety engineering serv­
ice to all war factories in the
United States of America.
And after the CM movement
was started and perfected into
an efficient technical organiza­
tion, nationwide in scope and
service, two important, and very
significant, changes took place
in our country:
First, we went to war;
Second, we started increasing
the number of workers in war
plants from 5,000,000 at present
to a total of 15,000,000 by the
end of 1942.
We have gone to war! It is a
war of production— production
in quantity, with skill, accuracy,
speed. More than a dozen men in
factory overalls are now needed
to keep one soldier fighting at
the front. Manhours are the
main source of war production,
and the manhours of our skilled
workers must be protected just
as completely and as fiercely as
the very lives of our fighting
men! The factory enemy of man-
hours of production is the in­
visible, unkillable foe — ACCI­
DENT!
Every accident in a war fac­
tory is a setback to our whole
fighting front and a delay to
final victory. An accident which
kills or cripples a highly skilled
The "Singing Picture" illuminated auxiliary speaker, Model 510, (O ld G lo ry) clicks with one
of New York's most beautiful models who listens with pleasure to the perfect tone of her
favorite tune as it radiates through the picture. "Singing Pictures" are making a big hit with
music operators everywhere in the country.
8
AUTOMATIC AGE
© International Arcade Museum
worker, like a tool-maker or
machinist, is every bit as serious
as the loss of guns, tanks, or
planes on the field of battle. We
have gone to war and Accidents
have come to war with us right
in our own factories.

Three times the number of
workers this year! For two
years the rush has been on— the
rush of the U. S. defense pro­
gram. In those two years, and
the years preceding, we had
gathered 5,000,000 workers into
our defense factories. But now
“defense” is out and W AR IS
IN ! We have to rush still more,
save still more time, find still
more skill, and TRIPLE OUR
MANHOURS OF PRODUC­
TION. With three times the
men, many new men, many un­
versed in modern safety prac­
tice, industrial war accidents
will automatically triple, or
worse.
Unless (and it’s a big UN­
LESS) : we can interest all indus­
try management, all war work­
ers, and the whole American
public in the new, inspired Con­
servation of Manpower move­
ment! This war belongs to all of
us and every problem of the war
is every American’s problem.
CM is one of the toughest fights
we have on the United States
War Map.
Industrial managers, execu­
tives, business men, can help CM
by giving the drive more study,
more energy, more publicity,
and more financial support! War
workers can help CM by bowing
to discipline like good soldiers
and obeying every single safety
rule and edict laid down by the
safety technician in their plants.
Accidents can’t be killed — but
they can be stopped cold! Let’s
stop them now!
The public— the tens of mil­
lions of American women, chil­
dren and relatives of war work­
ers can, perhaps, do most of all
by talking safety, preaching
safety, shouting safety from the
roof tops and thus making safety
in war production popular.
April, 1942
http://www.arcade-museum.com/

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