reductions in bar prices. Manufacturers
shows how the new proposed 'minimum
handling goods once shipped in interstate
report that- prices seem to have leveled off
commerce. The whole question will be a
wage rates might affect certain industries.
very interesting one. '
at 75 cents for 24-count, some going to 72
Candy jobbers objected to at least six
cents. Manufacturers have stated they do
s~ctions of one of the proposed bills which
Government Report G ives
not see how they can go any lower since
seems Jlkely' to become law. They oppose
Outlook for Ciga rettes
cocoa beans are the only ingredient that
powers which would be given to the Secre-
has shown real price declines. Mason low-
WASHINGTON-The Bureau of Agricul·
tary of Labor to set minimum wages higher
ered its price on bars to $3.24 to $3.40 on
tural Economics has issued a current report
than 75c for certain industries. The mini-
its 120-count vending boxes.
on "The Tobacco Situation," chiefly deal-
mum wage rate in the candy wholesale
Manufacturers are emphasizing, in the
ing with tobacco supplies and prices. Points
trade at the present is 40c and the minimum
midst of sales troubles, that candy bars are 'Wage proposed would be 75c.
which will be of interest to operators in·
highly competitive with other nickel mer-
c1ude the following:
Candy jobbers are also objecting to ex'-
chandise and especially during the summer
In 1948 cigarettes turned in 93 per cent
tending the statute of limitations from two
months will meet greater competition from
of the total federal revenue on tobacco
years to four years for back wage suits.
soft drinks, ice cream, etc.
products. Officially, the total manufacture of
Candy jobbers seem most disturbed, how-
A foretaste of some of the hot discussions
cigarettes in 1948 is put at 388,000,000,000
ever, by proposals in the bill which would
that may appear at one or more of the
units, a gain of 5 per cent over 1947, 30
extend the law to cover businesses "affect-
candy conventions was seen in a statement
per cent greater than the annual production
ing interstate commerce or competing with
of Joseph Kolodny (National Assn. of To-
5 years ago and 125 per cent greater than
interstate commerce." Jobbers say they fear
bacco Distributors) to one of the candy
10 years ago.
court interpretations which would apply the
trade papers recently. He predicted that in
This would make the cigarette business
federal laws to employees of firms entirely
10 years there will be only 12 manufactur-
one of the fastest growing fields in the mod-
within a state.
.
ers that control the sales and output of
ern business picture. High employment and
The NCWA voiced its fears of such court
candy. He said this high concentration into
higher consumer incomes is given credit for
interpretations of interstate commerce in n
the hands of a few firms had happened in
the big increase.
bulletin covering the )Jroblem of the sale of
the cigarette field and it seems , sure to
The prediction is made that cigarette use
unwrapped or bulk merchandise under
come in the candy trade.
will increase some in 1949 but the rate of
federal law. The association is joining with
'Kolodny called attention to the small
gain will probably not be as much as in
other associations in the food industries to
number and varieties of bars on retail coun-
recent years. During the last half of 1948
study the problem of retailers who sell un-
ters now. "So few, in fact, that on many
cigarettes gained only 2 per cent over the
wrapped stick candy and other candy items.
counters only two brands are displayed and
same period in 1947, while the gain in the
They will study the full effects .of the
featured," he said. Many vending operators
first half of the year was nearly 6 per cent.
Supreme Court decision in the case of the
welcome the predominance of a few brands,
The retail price pattern of cigars has
United States vs. Sullivan, in which the
since only a few can be offered in machines.
changed strikingly, the report says. In pre-
high court held that once a product has
But Kolodny, himself a cigarette operator,
war years, close to 90 per cent of all cigars
been in interstate commerce, the Federal
has in recent years become the champion
sold for five cents or less; in 1947 and 1948,
Food Drug and Cosmetic Act thereafter
spokesman for wholesalers in all fields-
only about 40 per cent of all cigars sold for
follows it, and everyone who handles it,
and wholesalers apparently prefer a more
eight cents or less; in late 1948, sales of
all the way to the ultimate consumer, is
competitive market as represented by a
cigars retailing for eight cents or less were
responsible under federal law. Anyone who
number of brands in -candy bars, cigarettes,
gaining rapidly.
does anyth~ng that causes it to be adul-
etc. Apparently, what happens is that whole-
In general, there are ample supplies of
terated or misbranded, as defined in the
salers are driven out of the industrial sys-
cigarette tobaccos and the price of the 1948
law, violates the federal statute.
tem as manufacturers in any trade become
burley crop was slightly lower than the
Attorneys have pointed out that this in-
few in number.
previous crop.
cludes local wholesalers and retailers who
A new invention has been introduced . distribute bulk products entirely within
which apparently will greatly aid the pro-
Cig.
Tax Hike In Washington
their own state. They say that the sanitation
duction of chocolate bars. Incidentally, the
SEATTLE-Washington now has a cigar-
of the establishments of both wholesalers
government report on candy sales for Janu-
ette tax of four cents per pack, the increase
and retailers is now subject to the Federal
ary and February shows the makers of
being for the purpose of paying a veterans'
law because it provides that a product is
chocolate bars having a sales gain of around
bonus. Since neighboring states do not
adulterated if it is either prepared, packed
30 per cent over the same period in 1948.
have a cigarette tax, the tobacco trade ex-
or held under unsanitary conditions, re-
pects considerable shipping of cigarettes
gardless of whether the product is actually
contaminated.
into the state minus revenue stamps. The
new tax is to go into effect June 1.
Attorneys also point out that if any
Trade circles report that New Mexico
wholesaler or retailer does anything to
will have a cigarette tax increase to four
cause a product which has at any previous
NEW YORK-Robert Z. Greene, presi-
cents on July 1, and that North Dakota
time been in interstate commerce to be
dent of Rowe Manufacturing Co., Inc., has
will get an increase to five cents per pack
misbranded, this violates the federal law.
announced price reductions on its current
on July 1.
Misbran'ding would include not only false
model cigarette merchandising machines,
In February, Washington state revenue
or misleading labeling, but also labeling or
the Rowe Elec tric Diplomat and the Rowe
from cigarettes was $356,032. January rev-
packaging a product without giving all the
Manual Diplomat. The electric machine will
enue from cigarettes was $411,386. Stores
items of information required by the federal
be reduced by $20 and the manual machine
law.
here report good increases in sales of
by $15. The reductions were effective April
Raleighs since the coupons have been added.
While candy wholesalers have in many
16, 1949.
instances been disturbed by the far-reach-
Greene, in an interview, stated that the
* *
ing application of federal law to candy
Phil Baker tells about the fellow who
price reductions reflect the somewhat lower
which has once been shipped in interstate
was always boasting, "I'd like to see myself
costs of materials and parts which are an-
washing the supper dishes every night!"
commerce, the question has also been raised
ticipated in the period ahead.
in vending machine circles as to what
Says Baker, "So his wife put a mirror over
Rowe Manufacturing Co., Inc. is believed
responsibility an operator would have ' in
the kitchen sink!"
to be the first manufacturer of cigarette
merchandisers to reduce machine prices.
"Leadership in our industry," said Greene,
"places a heavy responsibility upon us to
maintain the highest quality standards at
the lowest possible prices, and we are con·
fident that our current price adjustments,
coming, as they do, at the beginning of the
usual machine buying season, will release
a large vQlume of orders from operators
who have held back in recent months pend-
ing just such a development."
100 pack capacity PLUS rear shelf storage for 80 more packs. Cabinet
stand holds more than 400 packs. Built·in changemaker. Rugged construc·
tion. Conventional upright model with mirror panel.
Rowe Reduces
V.endor Prices
A BRAND NEW CIGARETTE VENDOR
UNDER' SIOO (~~~~:)
The CLAYMAN-YEATON VENDOR
Extent 01 Interstate
Commerce Is Question
WASHINGTON-As an example of the
varied opposition to Wage-Hour laws now
under consideration by Congress, that of
the National Candy Wholesalers As~n.
MAY, 1949
PAUL A. LAYMON, Inc.
1429·31 W. PICO BLVD.
LOS ANGELES 15. CALIF.
45