CHAPTER IX

MANUFACTURED PRODUCTS OF TOBACCO IN THE UNITED STATES

STATISTICS OF PRODUCTION AND CONSUMPTION. AMOUNT OF CAPITAL INVESTED, ETC.

MANUFACTURED PRODUCTS OF TOBACCO. GENERAL REMARKS

The importance and magnitude of the tobacco manufacturing industry in the United States will be best understood from a consideration of the following statistics taken from the latest available government records:

(_For all Manufactured Products_)

Cost of materials used (1905)==$126,000,000 (1909)== 177,000,000 Value of the product (1905)== 331,000,000 (1909)== 417,000,000 No. of establishments (1905)== 16,828 (1909)== 15,822 No. of persons employed, more than one-third being women (1905)== 160,000 (1909)== 197,000

The figures are given in round numbers. The total capital invested in this industry is between $300,000,000 and $400,000,000.

There are more than one and a quarter millions acres in the U. S. under cultivation of tobacco which yields a crop at present approximating to 1,000 million lbs. of leaf annually.

The industry shows an absolutely increasing condition in every particular at each census. During the past 45 years the value of the product has increased more than $300,000,000.

In addition to the trade in manufacturing in the U. S. there is the export trade principally in unmanufactured leaf. This amounts at present to about $54,000,000 annually. The price of export leaf has been continuously increasing despite of the fact that the production of leaf abroad is increasing. Thus in 1886 the average export price of leaf from the U. S. was 8-1/2c per lb. In 1914 it was more than 12c.

The following statement shows at a glance the marvelous increase in the tobacco industry:

_Comparative Statement of Manufactured Tobacco in the U. S. (all products)_

Capital No. of persons Value of invested. employed. product.

Year 1880 $ 39,000,000 86,000 $126,000,000 Year 1890 90,000,000 117,000 195,000,000 Year 1900 111,000,000 142,000 264,000,000 Year 1905 324,000,000 159,000 330,000,000 Year 1909 197,000 417,000,000

In addition to the number of persons employed in manufacturing we must take into account those employed (as well as the capital invested) in the agricultural and distributing ends.

The export manufacturing trade is not important, being only valued at about 3 million dollars annually.

The value of the home manufactured products which in 1905 was shown at $330,000,000 is distributed as follows.

Cigars $198,000,000 Cigarettes 16,000,000 Chewing and smoking tobaccos 109,000,000 Snuff 6,000,000 Other products 1,000,000 ------------ Total $330,000,000

For the increase in the present value of the product these figures would be proportionately increased.

In the year 1913 the United States exported about 350 million lbs. of unmanufactured tobacco leaf, and in 1914, 449 million lbs. This was distributed as follows:

To Great Britain and Ireland 174 million lbs. To Canada 17 " " To France 55 " " To Germany 32 " " To Italy 45 " " To Netherlands 28 " " To Spain 17 " " To Japan 16 " " To China 11 " " To Belgium 11 " " To Africa, Australia, etc. 43 " " ---- Total 449 " "

The largest export manufacturing trade was to Asia, the cigarettes exported there having a value of 2-1/2 million dollars.

The consumption of manufacturing products of tobacco in the U. S. has increased continuously since 1863 when it was 1.6 lbs. per head to the present time when it is 5-1/2 lbs. per head of the total population. This works out at about 16 lbs. per head for each male over 16 years. The consumption of tobacco in the U. S. is higher than in any other country and has increased more rapidly. For the past 40 years the consumption per head in U. S. has increased 240%; in England 56%; in France 24%; in Germany 23%. From this fact different deductions might be made. It may be that the Americans smoke more because they are fonder of tobacco than Europeans; or because they get better and cheaper tobacco; or because they can better afford to buy tobacco. The greatest percentage of increase in the United States is in the consumption of cigars.

The manufactured products are classed as (1) cigars, (2) pipe smoking and chewing tobaccos, (3) cigarettes, (4) snuff. To each of these separate chapters will be devoted.

(_For references see Chapter XV_)