Apmil 4'; 196.1 http://legacy.library.ucsf.edu/tid/rlq00e00/pdf

http://legacy.library.ucsf.edu/tid/rlq00e00/pdf 

Apmil 4'; 196.1 

H©FtHVE & SfFlEL4.,> INC. 

15 EAST 41ST STREET 

NEW l(oRIC,tT. N . Y.

'!he AMW'1 Ne.tift Of the Stoakhsrmai*s of 

P«, LwiiLa" 4ompmny mr hrid +ao Aprii !, . UO1, at! 024*$iIJwk ao a 

.f at.' 00 BUtWWO N4"1j, goR UWko $' . Y.e Lowie 

orwoorio chaft4ma!t the nmNwd* P"S'1+d4 fpq~+ 

M~: ~i ~!~ ~61 jt~i~M ~' N~r*aw 

"W ajt"'1" relII, j+]0alii ' to" tod o mww . 

fioad ! xAmimo, IAAU* mad .40d, 3~'tUw 

Sb to aAMSWs to bs iie" vdtlbtJOW ;,, arld I •wo 

U .*,JA Ift .aleaw' to amokobeir ArAwal NNN1as tt! %I* Lwi1Lwi 

404NOrq7 . _, bopis *rt 7" Idu stay for ' 1*admwu, whub ri-u b* 

xoloft-vw Wr ap tho West3qd I 

umt yw to w1* ' Ws lf9tNwr sad Qiaeetort of +waw sewppy. .oo . 

ot' U%aa b0. iabwr Ma pIROar tn 0 . NeWd' *10s eur Itrb dmMt 

XNStftgs lUsi4 bo3dl vww agglrm+t vm~i~ ;ILall of ti . 3aibrodm.w 

U"s' bav* bMa awde . VAW* 7.u . . 

Xr . '1'!!muo PFMMOSamb ald !t dl!!0li4l; 

si* # `ftvloi, a #1i1'OotoMwo v1s! : fteoldout *ad ~~w#WP!I a' s . 

~t~aeb, at aw 4.mosa3 i9wm"1 ; Wt xemotb,E a+tiv"tar aui 

T"*:- Pad+mt, ma ' DIAwriW s t listaftelwiw up, ommor, a 

d!.le*tor: =4 TiN F"lllidmtt atd Ls1'lo1mt to %bI! PlHldso1t ., md 

vivstw *f Iotov"Sl.slaa opiLmss aa . Datldsa14 t dirotar 


~ . 

~ 

qo 

w .

asx& Unouti.a Viae Preaident of oxir aubstAlaay, the Fetlesral Tin 

Comapasay. 

pn : ay is4t we larre Kl.ae W+aws+~p~ .rr.,, . S"se1ary at 

tb* e~!'p~tti~ty i~tfA'~ 3 si*6 a"„ ftO 

to r this wretAnl" Mr .: Til]mt . ""e1w 

and Dir.ctyor, oof mleist Dr . pa"rl0„ a dtxwtw " TuepsesL* 

Qent, and Director a[' lteeermh ;' Up,*Tay1woo%w Mwot Air"tera 

aisd %b!' Dl1"*Otw of ;1eaf' Activities . Wr Zft.yUT bMi bm U, Um 

*e.~' bn~i~ng o~r~i~ta~t.i'tr~ Ot ~ar ~~r t1re~ #ea ~a~ . ~~ xs~ 

1tir.eta= a!' taie' se way, 'a Nk l~ee~ i~ a :;~~ns~R 

. . .~..• •'; ,~ 

ai' ~' f ~~T'~ ~ '~r # 

8~l1+fy a' 4ireotor of thda' oo .PA7„ .al1 M IeOrftialls*. ; 

2 

Apo . • 

rbseo1E ted+ity, 1[:s W4'edsrai fta &s it dV"tiW et 

tbis,ea."'aa, sVd aa wrr.stowt ba:rker-. Be te =.eoL"M7 . . 

. ab.er*l 4=r & U01110 ~.e~ iKO ~in! "POPO .~ 

A`: ftRt tabL On ary ' Y+i&1i we .bWO Xi"!o ftd:eL, 

~ 

ot a~r c~.rs1 QaaSs.ll Xro DarbY, eer 4a.-1 ftWIWf • .Nr« a%" 

eWMr. Raseab ~~6e, er' MskUs & U1U, aer 3,e3 e_ l - l~ .n"tors f 

~ . 

w . 'P .. itirwy "thr1ebild, #pr+aiartl aatuurel be $10 samp"?'•! 


'!"billitk jft : ~ : (A"2LwlI ) 

"0 tirwater and! stoOk boeks +od' %b . **Many are

hast, and tbMg riil romln opmiCerF iaspectiaa by tke ltoa*+ 

holdePS ftring the rrbole of this aseting . 

I &n.aVwDeW that US" is a qtoftu We"et * Tbe 

oQ1Y basisnss' as t v %,Nw y0t to osM urwo tbd.s, "u" 3e the 

l.lc~it geit toooob .#A _'0i ftil" mUmsetim aaAft~wy 

NSN .1J Ub 01"itUM 41tdMg%Ws for Vra .awdAg Y$+av. AtUr 

l#,Nr o"Publ= at ' *%a# vNLloss xr+ -tow3e vu1 add~ Us 

wast''"" * 


~i~,`0~ I ~i~C fte ~re~3'j #to~iNA~ 

00 sab3e* of` mNessms. MONO 6~'M au -tan ot ' Tr~etY, apd -as 

AtMwlts"1CUUM; .A" 0i*16a%3" 

. . : 

U6 ltSa:g, hvoat7 iIMUMAt' '"d ISM of " ft=Y, a~d .i st' ft4gh : 4marre 

bN~ ssadl~ t: ~~ +~~1~~ . I alEO pr~e~~ ~ae ntt!f .d~t~ta 

.brrftg t3~a waatisag or thme eoQ th• pabliartim of the goU." 

m! *.Wa& ft aesa+ld"S. Idth tbel.w at' 1"-d"Ssy aad *bs 

bySe.ra at tbls oospanl . 

1_6 w i's 

~ -&0= $~~ ~' Ur s CWVM 1q . 3jr ' . NNW 40d Z t" 

re".aloatiug ems 5, 000 abe"s, .ad ve rise to sliiy 19 .eM0s- 

Uarm rr l" the lEoblos ot 1Ntl,ms : etbeibea+ or not ' tboi ProaicT &%sU* 

aftt .mA ' gr A=ftl Reyrwt ve" t a+ .a# fko the 1lMra U4 posa at, 

the sew 1tiM 1tt any aew "Ua1t1 Iftsa tihey ataes ert«

CUAIRM" GRJ3M r Y+Rs, t3e y usre, hur . t31 lbsrt . 

MR . aLLB4Ws "P3sank ym . 

CRIIRMIi' GRMW,s Tbs itotios, :'1~y 8tst .x.nt, 

foorm of Proxy,, aadd tboss Affigavite ul.ll be affixed Lo IWw 

adaatos of this ms .Riqg as p.rts tldwrsof . 

A sotiaa ts now im org.r to bas tha miriat.s of 

Us pravioos asi.ting readwr to diap .nso iith such roading . 

TOM WoOLs *r .Cbairasa, ImorrI tha t 1bo. reading 

of ths sinat .s of tihe p"vi .oas aEati;pg. be aLpsaasag' tith . 

oppoaod, so . 

(Ttr saarirLc4 was duly s.ooaad.d .) . 

_CNAIMIt OMM'I. A]u. ih fa.roar p3+.+s.r say .ylf, 

The motiaehaa h..n earrisd, amd' the r.adiwg 'af 

the sinats ts aispaassald with . 

UUi' Woossaws 

jtTBg' w0X38=s Seoti+eD i3 bf Artielo II of aar 

BTlaasa prewid" that the d"l .rsoUss ay appoint t+ra Insp.otors a[ 

glmetisn at apT tl:ms b.fora : potioo of' the ms.tiug at which ssLi 

sloatioo! isbrid .; Tm aaoumlanv.with 1Us provisioo„ths 

dir"ta+rs, at a msoting , hslid an v .bYUary 1fth, appoiat .d' lltr . 

GaWWaro and Kr . gposrtn, both of .rhou ar. .aaploy"a of the 

•a.las,y but are aotoasdlel.tss far direo*w, to amt as Znsp.ators! 


4

ot Nlootion . Tbty batto bom srrom to the ta1tbftl p.xfefrMaoa 

te tbeia duftor bef!oro tSotasyr ftb1lo v#' tbe 8tatw or lsx York, 

.M I par.r"t C1t.Ir Whre 1A tbts MOLDg . • . 

"Wo , floA t a l3=b#11 *t %b! # "i" s 

+aatiX tlar nast Amma1 xes%!Lm of dftrekbrMsrr, .±eor vxtil their 

mseeiaom' s" *Udted' and qlWiod . 

Vb* tqll~ 

1V p ropmlo #o 4omsmt* ' b1'M tbirse" 

; HA ~~ 

d~~ ~~~ ~' ~~ ~' %4~' ~, tow• got tmAb to t1w 

tbitb*"' d!."+si"s * 

ma arrettug iG o mw vpm, !` ot the saft'tmrtieu at 

Mao wa3- "!' o Qb"Va"t SsOndra#e rt'q' dir"'Rer 

axak -o3` '1ho t'11lUVssS pwas" -Nloirl& to. tbo - ftmw' lir~#lwrMl~t , 

Mais" 9 anbe2*. T"RpW. DItfiiQ., 7dtUlDj PIt~3+11v 

C~r, 8emett . Tay'1Aw, Da'rIdsoel. 8oar2s, -Naqadersaim . Aaw1+11y, ,lp d 

saftv"s . 

1i+anst a+t it bmw s6e0aded? 


ClllIRM 030MI 1l* tb*vs any lUrtItor MaslMe 

, 

8' 

f

Ma nominatian .rmu duly seoonded' .) 

CRAIRMS GRUBURt rhersappsar' to, benoothsrnmminatloao, so I hereby d 

.alare tlne nominRtione ol;+sad and, the 

pQlLr, ax!e open for tho a2"tioo 4f direetaru . 

MR a .fiILAMS Ur . Cha3.rreRS, at this 1iIM, bMtoro 

tot#aM ea tbesy.otioa -og' tho dir.oteMra, ther. a" .er.ral 

ipleLf L0 Qtksetiont In voaud to the di"etwi I!h`fuld, 1'1m ' a .I1a 

to Vlt . 

y"P3 

NoMr, sray dirootors meotings wsre be1A 6nol, .ng the 

CRit'M" " nam u.k7:. ur. t11]bert.f d#,r.ot.rr 

asOttWsaro b.U oMs .=Wtb, for .T*x7 ~road~ o! 1h.' pav, .n4 

thr`ra aro ooataia tlxws wb.n there are additimal mttino„ 

1 

.dopilading', ao the 1trgftby of t'tbs stttut.f on . 

MR. GlMRTs Cam yon tell a#, or eon oomaell 

to1'l aa, •b.t aqaorm of tbo beaar+d is3 

Board o 2' thirt+een . 

ONtIXW tiWB=s Aquorm ia' a mRjiority ttt tbr . 

YR . GlIAMt And will you tol'1 us something of 

!b*, attendaAOe rooord and tba t#aor th. avev*kr dirioattore n.eting 

talit"t 


~~~f 4~R~b~Rx Nl1~., Wr ].tf~ a~oo ~' 00 

CJO~~rt 

6

averagtd abarvat 88'-2,/r8 per oont, and thar msstings sonrstim .s go 

a.nyabom froaa an hoar and ahalf to t .rra and abalf caR t'br .a 

lsours, aap.adiwg, aw the butlnsas und'sr dirmrassim . . 

It tb.re are any rtookhoidors pri.sst .bo ba.e 

not alrs.Aa fOW by proacy, p3~sas• bo3d ap .your hands so tbr .s .e 

ass pass a balloE to . Im, and ths balUts will bo eo1lsst .d an 

soon as they riave b+r .a proparsd«Will ymrRlar Torwrsolf Imaqot 

to tb, usbrrr, ploasa . 

Ib asaordaziet with the folr Jersey ]iaw, the polls 

rsaaia open until all persaas! pr.Reaat bava bad' an epperunity to 

eatt t3s! Ir vml/rAs s . . I 

lrs thor+r any others idw have in .t rosoiTOd s, 

ballotv' is tbsre anyone pr.sent .lao hasalts' east his ar brr roto 

a1bsr by proxy +erDallott 

the beard'. af oiraetwa . . 

y9ur Is

ason f or their *exwioes durias tbe course df Lhe T*rr4 

CMiRYM' 0RTBU$t Of tt'aA WrtAee39 direttt4PFA' !'Erotr 

a.re putside, dir .etore,, and tbrse four goaatlsmea reaelva a fee of 

#8,AW psr yftro the otbuor directors areemploy+rs cd' the 

e4Speay, and eom tw tkeir rosprwatiwe ;*4iiians as s"entiwew 

in tbe rar3.'aas d'ipulwats of the : oes"anyia opsratian . 

Ia . .wa7 e~ present east bisi wrotef d3nee tlst 

is tawo 1 aar aaopwww Wo polka f or wUotiaa ars olaa .d . Will 

tb~ lwspsetora plbase eaxxit the votes amd report th* results to 

this meetiwg In Writlaag . 

1" .VLU nO'# tVIS'o fto jeititfr,' ewer to ' Xr . '!'tlvlr~ . 

Mr . Tes~pl* ta a .re Whaw aU of yan baw s.t, 1 be13*vr, but a 

few words abcrst lsimm weald possibly be In ordr!r at this tiee . . 

Vv . 'f*Mlv Joioed Lari1]arti about 58 yrare •go 

aad t*llo..d the traditional I.ari3aard rento to exeaativ* 

leadwrslxip by rising thron& the moics . Be bas held wirftally 

every krry pes i:t ioa w9.thia otltr w Ls orpoiuati oa, and 1 knoir at 

ftrot hand just bow brwd 2is knowledge of t3Is ooapany io . 3ft 

ase, hr w" xy ssoand. Ira eememead and my alosst business assoo- 

ittedurirag wost oY' the l"t' 35 7saws, ablE' partioularly doriogg 

tbr pi riad .hem Loriilasd was b+siAg "oita3 :ised by the Intre- 

duati an of 'now, ard~ iaa.pro.ed' brarAs ,Be bas be" at th* top 


8' 

OD 

~ 

c.~ 

0 

.ca 

cb 

c

level of managAiOont tY3"t+ou(gh the ERowpanaf'O ~',+!!neZ"a'l 4tAZ'pbt*at8 

sxpaacsl= . Mr . TempIe is a tobaeea ma tbrough and tt3rougb, sed' 

them are s2c+ aZ* eas of the Lori ]1arct opere. tion in whi ch he ix s 

not m.+4'e a vital cmatributiva . 

i#4'ies and Seat.1aMn, I am prroadd to inbrmdua7 to 

you T.ar3.11aardto a.w~ Chiet' umeenti.. Olf3ser, "rrha vi11 add"ss 

you and than presWe for the reminder of' this aw+stirg . 

l[ar . TqvAple, (App lauxe ) 

ibos• kind tqrds, Or . 4rwlgsr . 

FRE3U]6M TIUUW (Pr.sidsng)tTbak ycsr for~ 

F.13orr sbarsho2d.rs, 7Ndioss and gsntleawa,, . with 

tOda7+-s sesting we feseutlly 4pen +onr o{apangfs third asataxry of 

bws 9:nesi Ws . TMs io aw p - - p teas aeeasiaaz f er a 11 of us 

am.oo3:atsd with t. Loriilsrd Cas;pany, for few firma *.n boast of 

a: bsnrita6e ss lengy, riab and honored as oars . I am Ya"aly aware 

of the xwspcse .ibS.lxty th#s p]nrees upom at, but 7ow bsYa my 

assa,amei that, 1il : the ysa" to ocmr, ar'SythSSS and i'r+erythiag 

t3aat "a b sdaa to add stily.l more ]astre to ths nans Lorillaad 

will bw done . 

Per as this meeting has sti2l another sigaifioaase 

whisbg Rbi2sIt balghtons my pleasure in being a pL!"t'i of this 

~ . 

great buainsss psnoram, adds even fairt.her to my Durd.n vf' ~ 


9 

O 

Gt~ 

N

+rsponsibilitys At this suebtin& i,tr.st gou !`'or, the first timme 

as your ohiof executive, baving picked up tkeo "ins of lea+iex*- 

ship trom our 8oard C2alrxr+.o,, Lewis dftbor, .ho has created an 

.nviabls rosoard' In our Saddustry •- tor bl .aarol.f, for mr! otsmpan7, 

amd for ar, as his mooassocr, to m*t . Upd1y, we •bswe bla . 

witih ns 3err toQ•y, axd praatieal3.y •y.ry other day as wsil, I 

so Vl.assd to stato . I oaant botb wpolt and our seaspsoy 

lort=ats In Aaving his oouns®i and wisdasms and In bis willing« 

ness to continue actively serving tbs cospaay to wboso growth 

be baa oontrlbatt .d! so ssmh . 

``Th." is aootbsr genbl+sasa;, ]aaarartir„ xbo is aot~ 

with vA tadair ond wbos* sxperisnos an+td sdwi"wa shall sorely 

miss.g3.a worlr1l;ta with the e~omany-srpannod'tlttyoi"Lmi11ardI's 

tro bandr .d'goars, and b, bo3d rirtuallY every important posi'tion 

wi tbU thd s sospaay . 1rst.r, of vours ., to the laatr 8ox!b.rt A . 

1[ent, wbo served as . Lori1Lurd's Prssi .tl4nt and Soord' Obairrrn 

ant41 1952, and fto, until bit d .a1h ]w#t snswer,r, was a mssiter 

ot"' our aoaTd mF' Dirastors . Re was a akarisbod 4'ri:ands a highly 

respected assess3.atM, and In his litftl ..r bN mads an owtstand'#ag 

soo tributi on ta Lori].1nrd.le growth .nd re ltars o In hiw bonor 

~nat oigarattos were naaod . l~ ~.n bis 1e~r we plan to aum+* a ~ 

00 

now ~1r~rn 1~l~lway liso station i.ooat~ l~Y,o~e isi~]~u s tros o ; 

W . 

QDN 

http://legacy.library.ucsf.edu/tid/rlq00e00/pdf

S7aavill®„ Virgiaia,, xbarra ara are now coaap7 .eting, our lstat 

faoility . Thds railway atotiom will ssrsciee thst art& . . 

WithLhi s maetiag ws off i4ially ar Yose the books 

oa our t0t?th par . It aaa a year in ablsb sales and ; arniags 

.esre at a bf,gb laaly just : sbort ot' our sospa»yts, alk-t.iso rseord . 

astablieb .d dwiag 19bli . But, even snMr impartant, 1M .as for 

;.arrSllard a7ear of ai:giWioant oorporate progrss . 

In this p4r 

.e wrro abls to poaaolldCatw the@raarsti4 gAius we bn& a4ada ftri'ng the th~ previous 3 .ars . We 

gaax" osr operatienr to ~at.r ittIeieaoy. at lower aoat, 

laLd a tirs !"u"t i+rU lOr tutnr. aMp+cr&t* Ooqr#h ., Aud; 

f#aally, in bb 93saiag ssastbr d' the y .ar are sso+r~d ahead in 

both : sal.ssad s.ara3aqgs, ot' the oo.p.rablR gsrl.od' of Lhs I.ar 

1sev3:'ous . 

ItltbQugh the year l9W Is spell

seoond, In iota.rnational op+eratians, 19W Ya,s~ a 

perrivd ot" substatatiai gSrawth . Lorillard branda were tntroduoed 

to 60 additi onal for .lgp aaxntri'es, bringing +our :trotal to .+.11 

over 200 o aantri .. tbrau~ th• •orL4 inafiiah our prsdua tiat, 

are sa1i . lCmt beoame the ]srgeft salfng tilter lriga"tte 

empvrted tram the U . 8'•, and oar other brarrds rade sa3ies gaftu 

3,b varieicas parts' of' ths *orldw 

12 

Tbtrd t In di1re1+s3.t'i0at f.oa, a t I,ari3;larQ 's i*olly- 

oeaoct subsid'iaryy the F.dera1 Tin : Oodpaay, tbere was added ann 

aAtisoly nex ovsratioa' -- Pspsr padtaglag' - to Itt tz+aditi4aal 

mrtal soatatD.r baa3neswand'" its two-Par-o2! Papar eartos 

Mattifa'Qtu"4 

Fousths IA aarn eaVital eqalyneo~, to iaprove our 

lasilities, iaor.asn proftotivitT, .nd reftaeopsratiag' aoshs, 

eurSacag 1960 .we adQ.cd a sew w!ng to Lerillardla research oeater 

!n Gramsboro, fiortb Una . 'We l.nsbailed sattmsi" na.r pm- 

disotiop .qut'poemt ati, a11 our gL_nts, aoc't we b.gan ecaastruotioA 

of s, oei seven snillieo dollar t+dbaeee prooessing and storage 

faellity In DMtr1ll. o VirgSJbia . 

Fitths lls0. In dev.loping tntnrs top manag.aent, 

duritxg 1"t, we wsrr able tr bring Lnto upper eehelens of a .nag.- 

nMatyouag : but tlaar

abilities by .rcu*Zting up tbrough the ranks of' the eompany . The 

telents, knowledge„ arA youthftl aggressiveness of tbasesan 

should be ot groat valta to L .orillard in the years a2oa4 . 

)1ar thr se are the ai .wissm highlights of Lori llard ie 

1980 7.ar, but their meaaing is e]aar. After tbn.e." sua"ssST. . 

faars at stralnl.wg car rsaatra.a aed . talaats to the wtmast to 

a.et rising sonnorr, desasd, .re .rera ablrr In 1960! to rdlig .t eur 

4psratleos ang, sehedalas to easrlj aace+sD .paata the n.!. bj&.r 

d,emand 3e.e3s .ad thus pave the reN!lwaX to twA?or gro.ft« . 

8ut al.]U of that belongs te .14g0, and! ts qast . 

"dsy w sft Oftoarn.d rdtb tb. !ulw. . I slwaM U1m avw to 

isdte4e to 7atr tkrs plaas and aetivities by alaieb we, haw to 

aair tlLs fiatur* the ArigUtest period im! Loril3arCl+s long 

bistort . 

We are„ of eees's+r, i!m tbs bighavolume,, fast tass- 

aver, e+oaaanaear paakagNr goods lmsiafsa ;, appealing to, a mass 

market wi3ieb grorws alftswi,tb the nation's ecputdlng pepnittiaa,, 

To arsici osrtain : that ir.r sbare in this growft, managemrnt bas 

laid do.n a sow "tafi,al ,narketfsg« pe4Wraw designrd to invreareoar sa] 

..s and broaden our d is tributi +on a t aIl lev+ois . This 

parograxoubraeas aar sa1+MC, adwertfsiasg and mar)ms4lft optratS,aas t 

it depl,onear expeudet# ;' tiw 7+dl sales l+oar*r tor ~ waxiumadrrentajp, 


and utilia.s ths xrcra tmolurn merah4odl ;s ing uratbods . p1us a new 

rsaeh 3'n msdia adverltis3,og, 

bes+111ws 3or1llard' 1w gs#X"iTSg its total "soul''Oas 

to broadeA and expesd itw sa los, we l mist r 2a4 keep wAr tobaeoe 

proeesan& eS,garette YaakUtg usd : resoareh faailhtiea geued'far 

sptiaAa 3AswIs of pro&otiao and effieloo!eY . our sanagesut and 

.egloeering ,aceonti.fe b.y* derr.lop!rd a progrwm bddA .now4h to 

aateh, Loillard f a aam xaarlo .t iwg driv+e .Tbry bave analysed every 

asp.et of tob.eso parodwatime froaa ssed-bsd to retail oosater asd 

]aaTS dravu! sp se!ao.ewpdatlecux, mray o!' whieh bave wlreadT' bsea~ 

sdogtNd, uhleb`ltiill lreduAlw eoeplds sostal, giv1 ats saacl.wfr~rs- 

t'sNwisg +s!'i'itisaay and perml .t w+siuctian: Saorea.esr v eansu+asr 

dernd eli statee . 

14 

our liasias D*parts*ot, Ihiab supplses bb . key ti.]A 

troops inour drive for bro.dened +A3.stributiaa,, is prepared for 

itw "l! Im t2w LOrI3A1d Mogra1s . sw 2Myi 1nere!s!i'4 tho s lse 

of aiut fis)t' .al.* foror uAiAl It is nar the ]argest is our 

bistoryt T4, 1ddS:~'iiano , ws, biLRe realigned aiYd itlyaulixNd our 

salss territories so that ©ur sa].e.i orgeriitaticaral stauotaro, is . 

!hr aros .t sff isleat, a :a we13 aw the 1,argest, we bave ever bad . 

This +.xpwA.d orgaulrEatian is now $o3qg' sfter ie- 

ere;sod. salws in every poss#b le outl.t and nu*et, frm the 


smallest msighborhood stws in motrmpoiitan arsas to the nrost 

rsmots aoaintry stand' in ths' doaP gr4ss roots rigXono . P.dsra'l, 

atats and othrtr, i'rAtILuti.ons are bsing barn,ed into oastonsrrs„ 

am3 spaial drirrsw are being fomosd on spsal:wXLsod' azws, sneb 

as the aiUtary aarkst bsr* snd ovsrssss, - t2r sa'i .lisge mrlsot„ 

whioh now Umrbsrs sosrs 34-VS ' silUoaa Arsriaa,ns of smctag, ajp . 

To giits Ivprilbard a grsatsr share of 1tbe total 

tobasao 1melasss, we baTw stopped up our .t'tarts for our aan- 

cigarstte produats, as s.ll. Vtder our prsaiuaa qwLUt' Indl ;. 

$owrn ssokisg tsbaao® label jws recently Introdaasd a nfw as.oaatise 

tobas0o' vdxttY's'v tTS ha'1's iEda1"plssd .iost Qf oP 

;sWMw q0klfttskaaoos - QAioe Yws4sr, griggr„ avsn, Ri"lo (o+s7t .atsy io the 

roIl+yaur-ar" wrrlost) - with attrastirs no# pashag*,d .sips . 

Insrsas .d' sales .ltorts ars bsiug, szartsd' for our Booebmut sad 

othar, dhswiag tobasoos « This proaa+aM 1.8 alrsada sbosimg sow 

resa].tsj aar Bsssbmt tobasso .mq.isa~ss to pa•rtioalar is growrlPS . 

lllthosgh the d.fti3is of our Dlaas mot sws .searily 

rsaain a corporate ssss+st, I santsll yow La general our salss 

stratsgy . Tbs basis for this strategy is our m+s]ist' thrrtsowm 

.reial prograsw in toddyfs sonoer d .maads hard sslling,. . 

Siass Loa+tllaad'+s advartisl.ag .p:*aogrruu iw so 

alossly liaksd to am Salss D.part'rmt activities, I b+rli.vro 


i5

that a atatemeot of' our adrertiaaing strategy will help dsl2neats 

fmr you the oew lmok to Lorillard t s aarke t trrg progtvam• 

in! adwrtlsz.ng, we 3aaue enlarged our interaal 

aderortisia6 depar#aent and appoioted a s+rooad advertising agenoy 

to give us tlss necessary #dditianal, strength to: areat* an 

intoosified Vro&"A :desiWWd to bring our sales msasags for 

4rr.*ry major prodaxat to every tvbaoea user arsd' pcrteot ;ial user in 

AmIrrica « 

t'.erilLaxd wts .irtua:7ly all a.ailable advertising 

nnd3:a - t+Nl.visioe, radia, mvspaDe3rRs, saoss.n+si* aAd' a: variety 

of oOdoer adY.r tisiag aldrD .D.a.eow of tlae drawaltie aad' eoo- 

twaUg Worrth of toUvtsL4s, and msoaase of lts porer, as a salma 

sediva* we speoit a krger praporMtiaa of mr advertising dollar in 

tbia aardisx than . in any qthsr . 

Today aror., tbso 47 sd-liivn towes, slaoat ain& out 

aif' aTery tsa, 2rav* tslsvlsi©n sets . Tbar* are 846' TV stations ee 

tbr air .very aa7 . TUO av.ragp: ba" with #e2svisi+aa san rsewfT* 

tive fliffer.ot statiana ; aod,, bsllevei it or noits an avrrsagi ef' 

a3.a 2ours every day, of the p+kr is spent in theee homes tiewUg 

TV parogratw . 

Butt vdineLd+rst : with the growth, ot" tll ..vtaiooa 

faeilitios hatrr etsaur ahaaos !,a progritndug,e ftr =ubet of en .- 


16,

vur prograxs on : the aiA bss doubled In l.he, last sxx years, and 

during the 1962 ' season there' sriZl be more'program with the hour, 

fiformat than ever b.for# . pormally with halt'-hour shows tbere 

ar. two sponsors, altwnatimg s#eby eet .k. With tbo~ heur shwrs 

there may b ; as maaT aw six sponsors, saoh sM a ans-winat+t 

psrtioS;prr.tisnn goth the fialt-honr and ths faU -hoer prograri 

bava their ad.raniag.s from ao advertising slanQpoint . Tba balf- 

hw_' frogran a11oss your prAftot tD' be tdiesititiad with th!' . Abow, 

s$dithe star or stars san give p .raeuasY s .l?iag mssagas . "w 

ftll hewrr progra~, an the awrag ., delie+rrs a larger aadi .ns, at 

larrsr eost . 

gow,, 16120 tdwrr ari gasgi' halfohair prdgnas aaQ 

bad aae-boar progrwo, and .i.os .ersa, we tool that 3xr ttds ~ 

soaslhg •sason we stxould bo osizg a oosebiaation ef both forsts, 

rhieh will giri us Uae stresxgoststet.ork 2ia.up . we .dll 2savs 

altersrato'p spansarsbl,p of halt-bonr paogram - Hssnssy asA !`ha, 

Priee is Right 4*4P and also sa+aM balf kour of' l!d Mai]aeaaa . Taat 

are~ itl*ae of the ac:si profitable shors an thw air today . On iop' ~ 

of Shis, we will be partcioipatiag ia~ rat.h.r Koars g .stt, TIeiCbr- ~ C~ 

ruptors, garrki,tan g70 and Caine f sRMAred . fte last two are :rss m eo 

aoOs eaoiin$ in the fall . It Lmesa sfven progrsa#s live up to 

ou,r •xpsotiatioas - axd f3 .vpot thao arw 41ryady very suasessful - 


17 

' 

00

s wi741: have the iargest aud'iense at the =ost efficlaAt prsoea 

ewar * 

vfti1# sales Cd! yoor o0apat4yts Vz+oduots are of 

prine oon,a trn in ltaorS .oa,, t he y ar.e a lso of growIft imortanoe in 

fbrr3prarloets throughout the Frr* gorld ., 3yori,llardIs iaatsr- 

sational snlom axd , earni.oga are not 7.t a dreisi.vs faator in the 

Qtex,aTl laarpora'tepiottrejbo*+lvir* fhe drasllt#l!'!' grm1hh ' o!" oMl3" 

forsip operatinn∎ izd :1:eaUs anirpo,rtant trood' in fabure eca-« 

parate gaims ., 

Qar Snfematianal so0!'ribio& fa1l into two eajor 

ast.ipri+es . "r oarig3aaal, aMOro 'trafttional, a1d' ut i11 the m{ .t 

prefitab?~r ars tbaA ia Vy oxvvt ta foreign ooootvios ot Lvril]ras*a 

pvAuets sanufaotarad ' andpaolrag .d Ia iht Vuikiod gltatara « R*hw 

assoed Potthcrd' la by licensing agrsxonts that psrmit foreign 

awnfastor'.ra to prodww aur brarft abroad aAeording to our 

spoaitteaiioaa .t in both sa#~.*gories, export and AUar%iog agfr .o- 

awts, LwMard'sadw aOotaratiai progress dariM 1400 and this 

progrsrsia acnt iba3ng : into 1"1 « 

I 1moar you wrill be iaitsraated to imov that gsAft 

t9ss b+wose: the bost s411:lng Jlmrierw filter oigarstbe ir ss,ah : 

oountries aa ;aPanr Zersol* sweden and iabar3gu . Xevpoart sala 

ars up sharply in all the countries on its cliatritnxtiaa ?.ist, . 


I&

In, the f te3d of f'oreig,nlicensfng sgmemente . 

Lorillard is the lead+ar among all of the dW+eetie tabacco aom• 

pan is s . Our produv ts • rs i au rarsntlg ma®ufao tured in F!nland, 

8hritssrLuAid#tbe PhilIpy;kA*s,, FsnaM, Vem+sSuol+ay it .XisO, BtlgiUm,, 

Lus.vdboarg a mffi Mo13isnd . 

In lobruarf o?' this 7!ear,, Old Gold b .oasme tlase 

first Amerioan eigarotto to be sanufaotmrsd in Aoms Xooat last 

amth 034 GOd boom* the first smerl.oau brand to b•~ aammufasUtr.d' 

it Slngapor. S aad thisaauath 01d Gold oantima its piene .ring 

progeass 1a amtheast js#at, +6sm it vi3,1 be : manufaalsor.d' in 

Valeya . ZA t1a"'lbf.lipplt.s Old `told eaatinas! to be the bst 

sating vaajor 'O . g'# broW., 


Uo'loed to oor sales and advertising ef!'ortsfor 

oor prodv+ots is asotb.r .4Part : iftoh has a di!'x.r.mt, although 

equ.ally pow+.aftl . iaspao t oa, the eonsmsr . I refer to rssaroh, 

bothio the sarlo.t plaa. end !:o ttbr lsborstori•s, sino . it : is a 

basle iagrydien# of' IArillaxd!.s continued growi.h. At ihis~ 

smsn~t, w, are adding thr fimal touches to the uow wing, of anr 

Oreensbaro risearoh osztor . This nax vi.mg. In +sft.*ot, Qeub]s .& 

eur usable ressarcela srea au0 will enab2rt us to aoaduot our 

soitutltie 3mr+estigations rven more thorougb2y than botore . 

Whf.1r atr researsb seetivl,tlss ssret of utoess3;tT 

l9 ~

emin bigb .ly oantidential, I want to assctre you naw, tkatO 

dssgito goa.rnmrntal liritati:aaaa l .:aposed upoa our advartSsi,ng, 

our scionti'sta are eexntinaiag,, and will asntinne, their crash . 

paogram to in..sti'gat.,, r.lias and! reftos ibwW and nLeotin. 

saateat of tob.eoo ftr siWstts . We titar bad : ta*l* iYidenes 

erer the -1,ast twc warr t#ati the public aants lar tar sad 1aw 

niaotint cigarettes, and w+ at Urillard' : are detemia*d ti'kat 

ttay shall have tbsa . Albbbugh ws bave b.ft foroedf te llistiaaio . 

re!'ereaees to tmss .losantr~ in ear, oi,gMrstte .dvesti.l:n$, to 

ee.rply with the Fadera1. Trad+r Coami'ssiosd 'sVOJpiat ienrs, ws rri l7 . 

nat- cotia oir* re.!.are4 in Ws ditstioa .. 

Amother fawrt ; e!' aur gwwft program3s ssn in ~ enr 

oapital sqaipssn,t iorproaremmt and wodsrAisat,4oa }s•ogram . b.- 

signid ti!1' g1Ye Lol'11lard the best jfl'odia,otlwltX aadd the beat 

quality Sm t'bf tOba@A+o, IndLuIlt.1'Jy @ti,r overall jA!+Ag',r`1p' afTiAts all 

of our taailities . 


At': a" tm mrtj'ar aanafa4bwtring piaAts, tn Oreens• 

~'iio"M wo!'t7h earol .iba,, a?id ~'i~Oulivills, Untusky,, 1N QentIn .l~+r to 

mo8emiss and' rucpand wherever mtees*arg . Ws have tirtoally 

saap2sted the switah-o.er L o a.w maobinory ot the 3atest, mst 

automat+rd: A*aiga * ftial A.w eWaipunaat enabU,r us to ope"to at 

miqE3 ;.rm aflieismeg and mfniam oesst„ and partiallye!!'sezs, rising 

20

+t2urgas for tvbseco 1laS, labor and, otber expenses inherent iri 

mnufatttur!1 * 

. 

but our Leat Dopsstmsat is i!a'ero the most dramatio 

Impttinrsments ase btr3ng arad* . Our Leximgton~, J~.aatv4fty tobaaos 

yroosssing plrnt has b..n nadern#x.d. aittr n.r squiywaat .and a 

gonera1 *faOiNllttlag* Oporat3.m .. 0ur ' ioT ,taoi:lity at Danvi)l]:i, . 

rizgia3a shox)A be somplat .ly op+rrat3 .osaal, by vddaraar. A]r.ady 

Mrra are over $3 . :illion ~t of Larfllardfs tebaec!os aging 

in 'Us nwr .tsEades losatird tbrrxo . About $8 prr a.ut of ' the 

pLMnt ls poraes sslxg nq%S,pssnti hx s barn iosta3?ued, and uksn Dtn- 

T ;li* Ss enupU*od xlth its apasi~~l~r«t.aS~+Nd ,raob#n.ry, adaptad 

to sww, sw. .ff1o3,ent, PRoftatiAd -sahWklss,, itt' ianxpoot .d to 

ssss ur, sabstantial yrsorarsiAg and storaga o .ats sad' plieoo us 

in a•trongar, anr+a somptit3,vs posi'tion within vuar Lnftslkrry . 

Anotber pos sib].i avsmNr t or Ti.ort, ilard 1sftt,xrs 

growth 1a 0 at a aArs., Oroap,la di..rsiti4at isea . Your Annual 

Rapoart apSlls +out !1m detail the aspmsloa an& dixu*sitioatiaa 

within our .ho11r-omod "ssAsarY, the F.d.ral Tin Oompana . 

This, howrnrnr, is ku-dly tbo 1l.mit at our d!ix.rsitisatiow aim,, 

aRld in ' tka last' tAt wAtjlii0 alme fOm'' m73agaMnt bag devoted 

extensive lFinr t0 3bvOstigatin ;g a awmber' at possible nta araas GD 

GJ 

taf divlrsifisatiam, mainly tbrOugh asquisitisn. ~ ~W 


21 

~ .

ai1h our main businesw •••- that of sarmfaoturing, 

and ss.llimg tobacco prvducta •- proQSSding aloag paàgrasmsd' 

lines, youir managsravnt can pursaa* diveraitiazation more avidly 

now tbaa bas been posslbU Isa tbe past several yeas+oe ft,i]us 

obvias ly I oannat be aaemiats aboat siiamti .as that rre are 

stvdying, x' saaa tell ym thati tbsrs are mtay s+sek4 arwd >we ooaa 

to our atteatiaA •oakly . I eapnot tell you srlmm, or even i!, we 

will tiad a sltmatim tbat sana"moat feels is aut"fiellnblt 

wortbuisile . Sttt of one thing you ow be surs# sol are looking, 

aad we are loait3ng riard . . 


. lae, the rlead, oar bask lsaa4s as o! Umrah ak 

t1a3e oar tsie 03, gEg?.M, 'PhN" lswls Pria="!lT i*oyr1i!A1c 

tdssooo l,at inr'.ntoty purobass, .nd .rr .xptst tbat between thr 

Dsaaberr closing snd the: of ths vow leaf ssRrk .ta~ th..e 

lorws vill be subst.aaatially rrednaad . 

Althvutgh tbAwe are s ossl irAioatisas of an utptura 

in tbw nat iaaal ieeo+atrg„ lb• past year haa been vbaraoterisod by 

a gsneral lcusin.as's alardose . Happi]:y, tbe tobaooo irdaibry io 

sUglAly aarr r.ra.ssion-Prae!' than naat tosm of emmsraaftl 

.ntaPpeis.x nonst:2olsss, rrh.n tusin!.ss g.narally' is not prosper- 

ing, aslttwrr the indivAu.al n,oor the ladustry oam really ArosPir• 

PtrsoataUy. I•a oautiassly optis istie t'ar a 

22

arodsat buminoat~ rss4vrrry dni*lqg the Qom3jj& manthg, and suah a, 

rssovpry sbmla beias,tìt our 1961 sales and osrnings .. 

InaiaOussSxeg .3thynn how g.n*ral ssonomis 

tr0nds iatLuk+raos LorillarA''s ftltutNe prsltp .Ots;, I sboaid lihr to 

tofif]C4 qpft', t#'o Mtters'. •buh'01`fe8t o11 of ns af fill" OwJ1o'rs 

l1ti+p IMwporaliiiii . 

In teOlifl, aionths rMw have a']Il rosd 0f Qaoos! im- 

TDIYUS 4oat3.1At' of Sotirestamong ' AorpOrate ' of tlAfirs rnd 

r`stristIva trade agsNsrots; pmotto.d by ao:pouate ex.oatives . 

I stssuld iit'co to sssutx+s yan that this oeajaAy, worklag wi1h its 

3sgal asuns.]t, bss taknar..ry ooa..i.osbl, stop to a"ld aqay aaeb 

involvnrentaaa tbe parb of i.ts att'ia.ra axA aoapiopes, md I 

persaRUlI? aa convinced that as» company is i'rse of any snth 

talatv Fbrtbsr,, yow bavo my assaranos that ma.W nt asll ia 

the t'utiurs,, as . itr the past, continue tob 

; smst' .xgflsnt In tb. 

Integrity of iits operations . 

Another rosant disqaitt3sig, bit o.f n.w ab+wt 

A?ea.rSaan bo.sinoss is tbe saggsstion tbst Uto o%rront 4 psr asnt 

dividmad aarodit .and $60 sbcaUrlon allowance for shareholders bo 

r+Pealud . Such a proposal i& h1ghly anPsxr t0 those Amtrisaas 

who risk their sqney to bsi3A onr national iaanoeqr asd will bit 

bardaat at tbr s,rll #mar .bollsrs vho ssks up tbe vast majoat*itT 


23

of ' the inves t ir: g pub i ic . Of our Lwi1Lard e hYaro oansrs, more tkAn 

thrt`-foortbs own 100' shares or lesa .Tbe ee~ are the rsanls .ho 

will be ,wst direstly, aaffected by this proposal, and surely they 

sbostld baV* at least : toMa of appr"iatimfro~a their 

golra~t f ortabr3aC o entribatit+a to, 1wd' their tmat ia, o%W 

frae .amterprls . ,.futaim . 

goving troaa thrra g .r,.rai4s.d business oondl.tsas,, 

outlooks aM poaibIk basaxds, I shoutld' lilbai to give youi soM 

Lndlaatiaa of' bmw Laeilhard to taring in tbo f 3.rat' %%art.r, of 

1W1. I lmm ym arrr all asmissxsly ariai.giag1 "as essslrat` 

1MlJle1ENlNt 1So'iRr31N3L1E' .la3itO and 11sr11l"s figurN s SImOs ow 

fi,r.t, quarter +s" "1T lut pslday, . obnrIomslt fi,o" sow"gs 

are not yet available, but px+rUaeim7 fi'~gmras shm t1*t the 

salr of gaat lttag-sis, and g .wpwt ar. al.arly ah. ;.d, of the aam 

psri'add last a.ar; a]*o, .tbe Old GolA 8tralght.a; lclpg-sisw brand 

is aaqaestimsbly paCt#sg rrs, im t, strsag+tr positiva in the noaae, 

filter .aAket rond is 1aelping ' to offa+ot -tbe tron6ofolla!rriaa 

Qaellne af' lh.e regular a4as od" this britaA . 

8o far as oar first quaArt+rr sales are o+mrm .ra*4,0 

our azpeoRat3. an is tIr t tbry »i ll r+x8 sli&tlg ah .aA of last 

7rar t. f irs t3 quartier . Ur earnings piotmRs for asr Sirst 

quarter to even brighter thSn. U st yt ar, .nd we ant3eipate s+ow 


. 

24

sm1l Laorsasas in parot'its . 

The outlook for 1961 asi a year I .vu1d say is 

iàrrorab 1e .Tber. is sto bus ia .s s . in tlao a arldmaAs aggrss s ivs ly 

oorpaiiti.a tbsa tbr ciSarstt. ssAusUy . Naw.vsr, Lcnril2ard 

toda y is its a stregar poi#;ttow vithlz 1the is4i fcry tbssti at any 

stber tfsts darlag a" 900 7tars . Gmr outlsoh tor a stesddl. 

erVm itod groablraa never be .a, smr* paraarts lag .And ya brtvs . 

a&aip iqr psrssaal assaru•se that Saaag"W"b +riY1 do O"rytbisg . 

pardibla, no sattsr how asdams 1b, task, to soim 1WL 1he bst 

par in year saaoaaylt hi :steryr Darr#AS vai'aatseem events and 

as anftg a b.a~.lehy sNttimal .sona .qr,, It is cr.rsvmftl . to ."set 

~ to be as+aod LarU1ard y!O ar . 

In elodz& I sbaam Ui0 to aaene ym that 

IASiIlard soaatinusr to aosdmots its burfness aaid' peaeaftl andd 

triamdu Vs latiamu with oW smlooy"jo, Whosi helpfulness w 

aakawiisdgs aith gratitst . . In r.#+sm, 'ae sban eoa#in+sW to 

strive! to sfter our loy .,t 4mp3*Y*sa aary agpoartmity, ssd a .ert 

benetit, esspxtibL withth• best iatsrssts of the eaug .ny . 

Xlso, iwl.sh to rooew ortr trianks to Lorillard's 

.extside dir.otsrs, Kto bsve ss

to eztsod www4goasaatis benrtfalt appreaiaitxaaa f4r yotzr swppart 

and your iraterastia tba : aft`tirs wd future of yow ecmpanq . 

Thank yoa . (Applause ) 

I ' bave the rrgart of the Iuspeotors rurw,, and it 

sboa t1ot the fo),ladag~ p .rs .ns s++.eateb the highest nsimt,er of 

rrotis,, susi i, thorafQrs, d .e],are that fl.ssrs .~ Bemstt's Cs+amer, 

,gatidtoa, D..i.s, Darl.y, Gridb .r, Xonlsrron, Parswls, Lsabr+Qar, 

e•wU, Tay3.ors Temple : and 7ir3i= are du7y e Ls stsd, t ohold off Ia. . 

mati2 the nut Anna&' Mosttng Ot ttoolft3A .rs or until their 

suoo4sewa &3*s eLrstMd and qualiftod' . 

Tbo roport of the Smrpeators -.f Blaotiao tiXll be 

amsos»d to the mlvutos w a part tbrrsof . 

Befare we go on tw ooosid .r ymr qasstions, I want 

to t.l.l you barr gmtofoi m„y associates and i ar• for the fia . : 

r'esponst !e have hfaQ In, eonnodt3.oA' wltb~ the 1"stu1'fi 4C TI'i1tP 

px=iis . 2t is vwtain}y eaaewra,ging to yovar ssnapasat to be 

ab3ei to say that apptwarSsatsly, eM per oent at ' tbe -axtstwsdiag 

.hwras have been rstarnsd sarked affirmatiriel7 tor the noninea 

lia t.d on the Prwary 3tat.meat .Tbank Tw .( ApPlanse ) 

Aheo, this year the osls:rs arM usinS a thing 

sall.ed- PoAataac for the aany ianee of ow stoekholders . This ~ Ca 1 

elis inatas t he usual a i ti ; aad heavy eablw nonsense ao dt haU s ns ~ 

~ 

00 


26 

G o

to get to gou aad your qu+.aticns mo~:~e easi3y . So it' you hsve a 

questiarn, ple.ss sigsal the ushor nearest ymct, 'Wha will raiss 

bis band for owr, att .nt3.os . 

Tour 4w atS :lfs . 

1oSore aoking anP qusstim ., pysaoo remember tbaty any rrtteas deai 

.ing ULU our prawtimal p3ane 

.dU n" ; and tbaV are ot iaterat to our oeag~rtitors be answerell . . 

Pix&sr be sarr to giTw 7ouur mams befw . Poo ask 

. 

27 

EVSt,U'Y. DItYiBa Vr . Cbtl :rmm, I 7rsproswt smoel'i'' 

solelya Firlt of aU.0 dia' we ' UiT, any toba11ee tl's4 thas lfsetl 

treated with *los.o a7earasLMt 

MUWWT' 1=Ptz t I dLdnt t smdsrstand 7=4 

gI88 LAVigt Na3*io Hydrasld., 

M8IMT TEtPLUt g#at is the Qrstxoa! 

YU8 DAVIg't PiA we 3uy any toD..oo Oat bas b.ra . 

treated with Wy:sie tldmsMa 

FMIDXWT T3MPiBs We resiot pu"2arsi" tokaseo 

t2aAt }aats been : treated .rltft MR 3t3~ . Motbss we g

Lollcw . 

9133 DAyIS1 I see . Abcut, those banIz notes pay- 

able of 84' sillita3 doJ.xia", lmow ara wagoi .ag to pay tAessT'. It 

Ss ob.iaai i'!romtb : tbalane* shoot tisat we nsed' soer : aow tiAano«~ 

laa6,• 

PtBBlDW TUMi We1l . Nbrtrrba t t givwd, any 

sarima tboUht 3A aua' tbrma'l talks about reSinazoinge but, as I 

tald'. yaa just amosont a"r rr` apast that the laMUaa •ill be 

redtssad saraawbat W+6un the buying s .ason . 

vh%ti Cmtt 'soa anaser tbat t 

lxom, is wboit I sMau,, . 

i 6mlmb AC' t . 

=1naMI E1S this " ar !' 


~ pAVES t but bow a rr W. goiag to pay itit With 

PUSlMT TMP=s I an awrY, 

XI88 33AVl:Se Now are rs g+sisrg to pay it? M1Ch, 

.FRSBIMMT TMt'Ld3 Monay . (lian&l.r) 

91W Dt`Fi3s ldrrs ars we gmLog to g+t tbe moaay 

Pfd==T TIM'IPtAt Cash flows slou2d r.do,Qi that . 

1iI88' DAYIB31 'YdeQ deatt Uin* tbAt We msld any nr .r . 

go 

FUgID=T' TURA$ I%st said to yea, Viss DaTis, .

that we 2aarentt discussed that farma . 317. amd I don't thSnk we 

ea&t t+a ba diaouss ing it 2*ro . 

WISS DAVISt But it io obvious that -•- 

PRIsIDSM, TWPU ; 'It' .e a oUsod 3.t„ we wi l], ® .r- 

taialy givs it thw attentioo It aoods . 

MISS DltVI8= Aro ws pissAing to bav* a sweepstakes 

oootsst, Ww soms~ at our oo" .titors? 

PR84IP=T" TW8L3s WAO Ilteare nfit . 

0133 13,AVisi You gRrro the oamiags atimta, for 

the first quarter . goo]Id, you osrs to give tbo oaro3ngr ati.ats 

ter tb. Tsiu`; . : , 

PRIMUT TMPLg'x ]0tlt 

k'It8 DiYiSS 7o$, for tkw obo3w ysar . 

Pggg1T+OT " TEMPi.Bs Z tMak tDat laa a sp2MAidd 

egu.sti*a,. (L.uebt.r) Z dw ;t want to aaevsr it . 

sotpsot an snor*aa1't 

IEZgS Fr#YtBs You daqit't vent to answer it . Do you 

FMIDWT TBKPZg s Wbont 

'siSS DAVitu I dom .tt lrrnow'. T am askiag 7m, . 

PUtMUT TJXPiJCs You eam aL*ys ospset . 

Msf D&Vigx I s..d aroxt2d ' ym oars to e+o w- t on~ 

the borxYl.ftrt t2,at +ras fovuari io tobaaao by ths Reesarob Depart- 


29

swt of a sasapstiter ot' oufrs? it *as in tlae lasra* of " Tobasao of" 

ltareh bsb, . It iaa a very r4arints ma.omt . 

that t bix*was d is .ar.rodT 

PRBS1DOT TXXKisi *ae tkat aomm)aoT ., in Burops 

MI8S Dil'Vi# rXo„ , irt was lsunkC In tb. A.s.arsb 

D.pai#tar.at' at Ligott &, l[I+t". 

&taxio ' "Mm . 

PRIMUT TIMPLIs Oat .as it eall.dt. 

IM88 D4VZ$s 8.ry7ataa, a anDstM+so toaad' in 

I' U3,U Irq : tFioii %te1t, (Jaashfa .r.) 

an talkins to t?s seieutist . 

aw, ft"Wl. st.Ys that is a afire, oaa"ituest 

of tbe salU t+ouad' tn vary svraU tras.s and #somtt srssw a thisig . 

9133 DtYI8!t Doesn't ..aa anything; Z' s.. . I : 

b.ard a ssrares+ )ObAt r. *ss13A diseantinsts SWtng sxgarsttes . Is 

tbsro any trytth to tta t! 

lsmw. Dve it ba],i..e it . . 

.a=Logs asxu t'ma abroad* 


MMTDW ' TJNFIAi' That rumor lE~ antaundid,, unN 

X1i38 DAVISY All right . tlbrt p .re .ntago ae ' +our 

PRRdlMW TMMPL%g Wbatj 

MIS8' DAVIS s' 9he per!Ointisge 8f twel4p ' enrA'Sngs 

30i

Yn onr oons*ljAatod easMingS , 

PR887MT TIMPLA : well, it is rs lat#.vely smmll . 

I[I'S9 VAVU'I Wl131 . 1tbori~'r how aQbf Ls" than ~ 

PRUIDUT TIM Ai,E 'I I 01tn aaaa werr it' 11d two wigs . 

L!t' as Mythft Ibbe goods w!' r][pert . OmWmt' to layb! S .$ ]er dsn$'t 

of our total,, and oigarettias that are spA o7M+rsMs, mnu=tc'tarod 

ov.rsrNrs, might be tho wq%iva7+nnt of 6 .8' or .7' of tbr, total« . 

lEM ' DAVI8s No, Oat !:s the aalos, but what aboat 

the ..=saags *.t i4ea emtribatst Do .a 8p.r oant of tbrri s.lss 

arpm , 1abe sam as oaraSw! 

31 

TupLB$ Wi11 yon a.fVdraw'0r OsnottM!t, 

an ' 3AMS ts it 4wo~tlast Thow y wil] . . 

t' IAMght.r? Zon won Iti give it ont, !br ooap.titirns r.soru l 

rTtEUDiWT TiVAPL&I iM.1l, tAat is agood; answsr, 

but that is not o.os.ari]:3 tbre trus .nswrr . 

riISs' DAVISt All rx;ght . I lwws +rs. mOr+e qaosti.a 

hw+s . Arr we pLrsnniig to a6d another qnia sbewr to onr to3A- 

trision progu±aa? 

FMiDAM tiYPh['1 .rQl s 1*.• 

M18SDiV18'= I think p.op2# tW r Wlie sbow SaM 

int.rosting' tbam, anyUing !1N„ bomatr,s` they r,ro ICaltsaMatoQ 1n 

ga tt ing asm tbing for t'baaselw*w . 


shows we are pIsMiDg, . . 

sdsdT 

iQui`~, T' ihat' wa# Nw! 0001fti* 1i . 

asoioy'l Ol tly ' in MY O Illp . 

FWIDANT' Ti90PZt We bsvatt i't any in any dt t1s 

MXSS 3AVISt You way bave saz+Nihiqg oIN in y0w 

PRUT33M, 9tWPLAs it yan we%Waft ti1p hwM+ob 

itUS' D4'VISt lpr aateb Sanoy ftat rasT 

~~ TMrW: YOV.r u1nd. 

MI" pdvI## I .a not i:ator.sl,od in so *ody .lss r, 

MM 10=4t I 3"ra . Or.. *0atl.aas V614h route 

to #M alfttve of Mbi,r sorwaay rhioh l .saul U* to tr.e anowesed 

at lhie tivo . Mytivst "st#ft zr rrith r+rdard to eapitial as« 

p.Aditu"s . Wbat !s tba total that this soxpaay plam& to sftA 

tsairr eapital oxp .adi tarss ~ for tih: s vai" t Siseal "aw libih onds 

oa i?oesabsr U, 1ftla ard how will this aewasi *omoasio wl .thila 

pr.vivss $$Nal par vbub saded wn v+ro*Wbor $1 . %mir ~ 

PMIPWT 4'nlu't ur «K*lra . I rri 31 lovs to ~ 

~ 

assrw3P you #€his + .a; . ws laarrs %adget+rdd for iWi appraaluat.1T o 

MIA ' ad,11ios dal]uars,,, 1MS t!lisr+* vill b .e a etrr*sv!.r : !~r 1960 VIA 

.Msh sam be speqait in 1"1. TMs Is bsosaso of the plaa# lasi3l4y 

in DasI1U that spa="d ayoar-+nd, so it .d:U bw iiO saris, aboO 


the samt, I am estim9Iv&, .iw 1061 as it waw Sn 19s0 . Do.s tbirt 

was..r 7M ? 

itR . NDMIAs Yosc iaostiec iip . 9 is iri 3regardto 

the .dvsratsing, tiaald youbol1 Wir a9o4kboldars at thisl us"Ift 

V tbo .ivsr9istn& for the tisoil 7t4ir jas9 emda!' was .oT. 9kan 

v.s speRSt'9he pare ! rsns rtar, or M#1stt' 

MSMOT 'YIMM The ysrr osding MO wQ the 

ysr 1ndisg 1059 wers s"roX3MUly the rrwf . 

MRw mMJlx : , About Owl a .vrrZ, 

Mau w' Tunnt Yos . 

a@t. MMI Awd aQr iina1 qaesbim is .~i9h rspst 

to #aw m.ttar ftia MOM : Ws sSMPOAy trm s ar 1*s psod"ss tbsas 

IMW! t3Urs . IikS yM Sr dl"ly 10008 ai"N' ftosi&ftiF~ Zotw E . 

IMMdy bs asmawettrll --P I ssao I wea ft say thftt~ he anaanossd, 

but Ms pRrsanal pbysioim swoms..d isb.t brs sws or Ls.s uses 

a ssskYin# d&ir ia Me oMAss! tJAK~' -M be sMs' •V*elc3s% 


ebair fa btat +stfYee . to wro eor 3sss V1r3smt blaesslyv sod siolt* 

Mo amommrsemt bws~ bsomt's, sw you probsbly 1qno•,, Owl s+oarr3,nc aha1r 3sdnstry trw been swrs sw loss lA ftll Ibliast witb 

rolprd to ordsars ~ lresn 4it'ftrenb posplr, suA so terth, Uio . IPhabw 

(t*Atdht+.r ssd .pF3aos)~ So slaso~ this sstMw at 1+kosr Lt9t1s 

Clgsva that ym ssntlsm4 In 7vrtr~ Armal "Poe'L In rsSord to 9h)s 

13

mwtter at the prssent t.Lme i$n I't so good', I sinesrsly Yopw that 

he also bas a hobby which he dosso't xoxwr or less fulfill ssven 

oiayt a .r.ak, but tat ts also bas ahOb7 in sh3 .Qh he also smloes 

oisars im hZa spars tiar, am I stDOSrsly hope that this! ratter 

*!U asws or 7urss btlp ; t2is here bvtsinsss In r.gard t+o~ this 

eaekpauap sbfth also nWars aigars,, so I s1aoore2,y hopi that the 

b1tsi3RNs Inc!"oasts' by ' Us mttA3' of smkU1.g• 

. sugg+1 stion . (App]uaqtss ) 

PRg3IAgiaT fiXd'P3.g; I da, too . Tist Sa a good . 

FASKY gfiS"xl I : aotiss that In this swr.tiog ysul 

b..e antSansd aothlM mbast 53wifts . I aa raadar3ns wla.t2,.r 

tbr sals of $prUW 1a+s b.on gratStyIng. 

the atr#.r to t'bat . 

AltIBIONT TBgPLgs Well, I think I aan give youl 

34 

Baak Im 196q,, wben we imtrod"sd mprlxkg oigar.ttes, 

.re bad It aa rather good aathoxM .tp that at ls.at two cft!! 4or 

pAti~'rors "lè g0LM& ' to laV&Q''i a .34M-ti3',r 104-ftf .l10tS.nO WAAthol 

aigarettts, and' we am & Ut tls proud ®d' the toa t that rs beat ~ 

~ 

t2arm to fhs~ gm . We got off to a pretty good stiart,, smd tt, .m ta 

O . 

ageney in Wastiogtmu said "lio, yu aakn't use thease words any ~ 

a+Ar. .V ' ane& that was .rot tws wanted to talk abant, so we rsdoa.di 

our adosrtisiag bsoanssas ooaldn It say sbat ws want .d to say aad 


pUmed, to *+yr, and go bfft b"n &&W"atbl~ ~NOd that dUAM6 

this pers.oct SprSa,g, has eentImod 50 ba s#rftg in, SRUs. ft ar$ 

aawluard! out this is thw XUA at sXV&wt sla7 

Anw3►oms u"t 1r. Wy* " ..we am lo3* te +f~~r ` ~►~~ 6, mw 

htvi #bNwts iad be OOY'MOO* li1'-'abow: Oyu* " 

have rei~ In We PpW got VU7 34" -fte't1aat" tM bwe 

SON* i+~3i+r~rf~3,a~ t~► 

POSYROSA=t T40# 2 ~~~Ma# ~ 

MM'"Ous -4p+ ► "ItlmM sbms,, flvo Ows s 

+s~lk t►~ the ~~USp ia! AA XUl~ wwwts fielaw 

♦t+Mr~erpi ~~a ~ ~ ~' 

. ,:A~i . . . . . ~ 

to be Ali4OilW0A -Vm 

. . . ~~ ~~~ ~ . ~~ ~~ ~. ~~' ~.' ~ ~ 

t$ UtrO "Othe~~~~~~3:~►~►tti' lb4m : "wpar* ls dmm "SO: wout 

!~~ '~~~1 ~~ t' ~ ~i~+id ~ ► acp~tSa. 

ba ~rs~ ►ps' l didoem ~ ~~ Itti, d"P iO+rw^ ■ ftR. d!t'!a"" i~ 

t3r ~ Ughtiy ww"mo41sa~"O that Is OWN VKaS lbn 

ti4~MtL~ or Dlttur 5boa awm1* mu1i1el irtltow51ib a 

?AM MG51llXi'r3 i I mbi, ~ 

3MWOR DX WM# 4'U has -xo#blag tO' de ► rdth 

l mi !u#ems"d to Ou` aDpmeh w 

. 4A 

to ~ 4etsst.taa► at, 5bo "VUW04 are4it. APPONvati?y *r OW #ryt 0 

.~J' 


. 

!i5

pragram believes : t}nat tba publi:o =at be eduoated to tightemlng~;iba 

YoophoIesand outting the ranlqr . Is there suah a thirag asour~ 

sorporate, aC'fisers art+apging f©r or oommitting tbeDa.elrres to 

some lobby wbiah 9121 adoate ths publio to tbo faot Ont skkars+- 

bsUor• aantribtte to the Asa :+ieaa e®anaay as well as tax loop-& 

MUat 

PMOlDMI!' ?MP=sWel1„ I ast not aerta3.n, bwt 

X an ratbrr sm-e that UM : New Ya* ftoek zxolmxigw will give you 

htta of las ]p~ In that dl,rsotion . 

x daaa't knoar whether aron rsvaTl it or not, but 

with yanr dxaL3464 ihrre was .o onelosure thSs yar'suMift aa 

pofint at " tbr~ prarpQsalo Ws ali bavo aCoqgresso.n or twa, andd wr 

trvn $ot a, psn and a p.no3;l . . I think th ." is a plaae to 

BLIMa D8 WMr We also have rrsrg sff.atito 

lobbisa, other 1j0rb196v BM about tbiw vampan7 -o» 

tbst: devartmentr 

PUS7.aUT TEMAA Weal, w. a" a 11010 s3xaVt In 

MR . QiI2izTm I wcnder, ar . chairman, it you would 

mo+asstnt on the Qhttoan situwtian„ wbat effeat it haw had, end also 

with rogard to the ase af' Cubanitobaoea, snkl anythinyg along that 

1140 yeW ears to s a? . 

GD 

PRESID30T TUa3As Mr . aiibert, !'ortmratily wr ~ 

e.~ 

~ 

C 

W 


withdrvx our inventoriss of Havana 1Cobaooo froyn Cuba baok in 

19b9,, .nd it is now al.l atcrrad in the United 6tatoB . . 'No bave an 

14nvantoTyr of r+atber good duration,, and long, encugh for as to give 

a lot of caaaideration and bave aaxar ],abora tori .s! do : soms tor1F an 

substitutsa grown e3 :seswhsrs that sxtght be oamgatible with ths 

athorn tobiccos used in oar Little Clora . I dan+t think it is 

anything f or us to have oan s .rn aboat this : "w cr nsxdt . 

lAR .008MVt in ta h€iag Qt ' Little Cigars, ar! ni i 

making a profit an tltst Little Cigar husimmsst 

PRESIDST T=BiXt Our Litt11f Cigar lbusinass 

t423AM31W th, ba4slrt of a oaophr of ls ars ago ssms bash, bat 

nat fully, b.tt.r than the year prior to thrr baosilet but ack 

baec Eo tb. bncs2at yoars, of o+ourss . tife at this mownt bave 

app+ox3aoatsly 47 per s .aat ot tlaa 'iot.al lit t1r sigar basinsss, .nd, 

it ! .a prafitamile . 

O& . GUAWSs Thank M .to rfgard to flalaayr and 

tbal athsr nprratiaas is foreign lnr,ds wbera tbars are new invsst• 

mats, ara ws using ti . 8. Government lnsursnoa against eacpropri;a« 

tiQn? 

PMWSN1 'TAMnal Well, Ar . ailbsrt, we, don it 

have any Snvestmft* . Thoss, ar.~ an lioims, agrasm.nt . We wark . 

~ . 

+or,i a xwyaltY basi* . ~ 

N 

0 

. c.~ 


+Duro? 

MR . GUBINT: So !,t ias tboir r.sp4nsibiUtg, not 

PB$&UM TmF,Wxt uiir rrapmsib111ay . 

MR, OZUO~4.`s SiO11'* AXA, -7ft 0610 bsft" atrwtt 

"i9t4rlriV:SUM* sm -Mt. Y' do ;foa 

3m4msbD tblugs: UUN'~ ~ 

iting qW psllsy ; iift #*SpMli' 1o JbU as~+w ,ft., s4drwaid 

a Ut:1 er to AU off"ero .se tto sa.psar and A~,#. a07persa=.1, 

(.', ~ ~ to tba laNr+~ ' ~w,3daaA~ ~' ~i! ~ any ~'~""' 

d~ *ad "r "st" to =Mwru #"S Wl; ba". Ot 

o!w.'mqwlOtt, x4mtsv*+Q ba4k frrrt t?aou 1dlpod vlatl~MMtsi to U* 

alh4t .tbW Ur" .rars Na +anIW taaMntSi:e#s iAl.TMV03l7o OW Ala . 

asInd tbaa~ to a ti.t+r aay .olt.mUam, *ss+. #s,a" :m., aW qutsrtim 

and I rts eortms at th" now"t that Vw Uaww no 

mi., $=SKI ThIUh ym. One aE two : othor 

pwints . Won visr Davis sp+rloa Woro waaaet the Dsuk Uans an4 

Lxir"AtOA.a aad 79w r.id yax -d1dcr*t think 7m saautd nted any strr 

6 lu'rusisS„ ru wa"ni=S a . bundamd jor +a+raat aar., it Z . S ..th.rod 

wbat "w rnrs t hinklUS . 3t we", !.t it bao to do with rsow, 


~

staalc or ooovertib2s A.benturss or Qonvariiblir preferred, I' 

gather yrvu know the shareholdere want the ir rights, It +re tnavs 

to have it . 

PR~SID=T TUM i Tb.t is: in 0e reoorl alre.aT . 

IR . 8i1JR f Thr rise Sml.ew#ator7, •rill y~~ara 

comwnt a littls s~ars sn tntt, and that Is mmy Ltat qu"tion . 

PM'MDBNT TRUPLBs Aa I reaall, tbere ws.s abost a 

17 silll:maa dollar inorsasiy and I think In the Amua1 Report you 

saw & sl-otl.lari Itaor.asi! in th. wlue of our leaf' isatr 

.atories,, aoOis is pribslpa?ay the reas4a for that imreaal,, tbrt is, tbr 

taer*asf in ]saf l:WnmtooY16s .And I adL&t aftfttrtf~rr, Altmoap 

you dift . I t as lt Ut qpt stioot* I tbInk at thls famvsntory ls.al a~ 

ars .rhoi-e we shaulA be,d ssd shoulad have bsen last7ssr and : ttyw 

7sar bsfsrs . 

1RR . JII?M1i YIWsoadsr if you oarr to s14plsmant 

ymr rsmrin about tlaf" oontent of nisatins sQ tar? To pnt it 

sorsi spfatftoally,oazi 7m : say whstbsr 7mr produot los loss of 

that tham, the other produats on *ithe m.rkstT 

MSIhMT TZXPLE' : Wel1, this is kind of a broad, 

general qnsstion you are asleiaag . 

39' 

1QS. ALTWo Zt, is a very impopt~.aat quostion, si.r . . 

No R,r i f thl Ji Qqiistion will, mbarra [i yotlt, yDU don't bwnrs to 


answer it . Ivd 3.1 ask abroadar quest3 .ml . 

I hseame a stook2uo2d'er inthia omPazy !'6r two 

reasCn1 . tns, I think it has the 01sinesa' type nf prOdutst, of 

1ts ltl:A', .nd the other reason is beoawse there is * stioeking 

diasregard in advertising pmetioaaoi+ ebi]+droA . 

'ycr snw it w,p. I .ii1L say IhopI yszx will a3es .Iy 

watch ths : tsLarvisipn Sbws to e.0 ttxt pr.tty roung gianls ad" ti+r= 

age ars not inolnded 3nyow psngrae . Tbs reason I say this, IV . 

ToW3.., is t6rt yaur orientation fs" , br.m that of aa]ars sNnag .r, 

and' you bap~ 4one a great jeb,, Ikaa ., bult tlasrs is a seaial 

l"tor to be eonsx.Qex+s4, Voftws# the good w 111 ot' Us jab3il# is 

sm.thing , to be woo,, b4h Se .tobaoeO snd 3.1s 1!, qairr e 

3MI'DMT TU!A!Ag 1feli, I aw going, !o answMr tbw 

question laai parbe* ldsd wf an cdd : wayby by t.liiag you that we 

brals relations with one : of' the aa3ar networlat In ths, Vnited 

gtatsar because wo aanii" that kind of a, pd-ogr~e and they dldaiz t . 

MR . 11MUs. Msy 1ask yau to onUrge +mw! ttatt3 

3dou say "that kind of a prOBran .O' 

?nBDXKT TfCft FLXt We wanted a n4oa, eloan, hoss y 

icUA oZ' a, prograut at a esstain tiaM on the netw4rlcs andL ' they 

wai'ntid a d4prs and reblos thl,ng, and me eo~s3d havMli that or 

nothing* we tioolc, aathing. m ww+06A . 

N 


40 

m

MR . AWMAN s Perhaps I have been mienanderatood . 

I d+des't refer to th3a YgvogIVM . I refer to yaung' girls amolcinc 

cigarettes in aTl tobaooo adtesrtising, and! I feel that if you do 

ihat 7au are going to enlsrg ., yeur sa7~:es, in Sho rsrang di.rsotion im 

pMID~," TXIOWs 11e13., Y think that vur ageaes7s 

as well ae ensr 1dvsrtSsiag iiepariumt, 3:a, well amare of' tbe 

thiga you ar., talking abqut, anl,, they are using every possib]s 

ssie= to prevent that Irort of thing from bappaniAg• 

M8t.,AVTNUs Well, Visa you said ttiat yon sem 

apppftemiag tD.i oollep aarlb.t,, thi isAividua7:s .rbom, you t+,lt 

w.re ri /idT' "$& srWai, Wia t i agy d Ld yea bavo !n ssd :ad,, Xr. Teap]A? 

(~ghteso`~ I da"ta,y with, smt peeple lhe, daxi" io pr®fit . l[y 

d"3rs is prof it„ ton,, but I fooI t2nre Is a larger pieture tr .re s 

t3o ill will oreated in the oesmasnity by tebao+ao psop]m doing 

tbati. . 


41 

FgMI,1M T=Ms W.ll,, I dcast quite fo].io, ym«, 

Tm s tiart talking about wbat ae do an +surteler3.eiaa show tnd 

wind ap; tallsiw& aboat wkat we are doing in, eQllsgos . I told Tanu 

that we are approaahiasg, the college p.op7+s of smoking age 

: Yvu sraid 16' and 17 . In this stsate, . Thoweare my eYaot, wordr at . 

2•i 1#- aad! l7-yver oluds tasa s t buytlmsm 3egallZ . 

MR. AISI"WMt Bat they awn buy t2s.m tbromigh your

vending mahlaaa . 

Q21I23*a. 

MSIDM ' TWflX : I don It opsritt* votmding : ma- 

]'RBSMRY` IMPM Ari 7mi v i11ommu"Rg 9i' °llLIrP 

IpOMS pg iiv3"%o* t4 ""%* lith 1UAIM a04&l32li?' 

WlE. AWK#ar II dfttt V .0+a~ 

I3w"lY asktbatSn 7mr*Avrrtioiv& p]"" tsbr wto 

ft.t isbrt *m -sott7 7*umg ' iLvU oxw absm ealkLog 

. ~ . ., . .: . . . 

AO ' ~- .SirtU'w' - ar1A. 

~~ VXiM- s! IBso, Mir~ .. 

JQ]Q !3 . .~~3C~ ~a s~~ior~w~ t~r~r~t~~o* ~ r[rs ~ 

~d~+.r~~ng: ~eut tbate ~rperd ~raah~o„ .r,~or ~4~r i3~.;' w 

' 

PMIDM 3SMMt Wolt, ao bavM .rrikit~li ibat O 

VXs ROXT3 I low' WbAi AIriVLOAR foripea7 iO :MMXIM 

~ 

l@t, moms rim . Nuts v.doral,, Axellt tboy 

abU to pro6se sll etar paGb.aftt tt . t1•arr I3Jast' a*t%*U7 balWrt 


PM7,DW 2=nAl go* mm amu oft tboy psedw!

for ue all we requirat 

MR . MCNR3Et Tba.t i s r3gbt . 

PREBIJJART ' TAKPLHt No, not yet + 

UM. RURY= Do you intsnd to get tbem-- 

Mfu!t 'F747 ara betag, inermsod ia 

preftetian st+radilTo and paAapr ae &W we ar111 i* able to, but 

I ' dmIt think we .hoalA'. gi:vr it all to tbes, tt+d you? 

MR. ZWR'Yt We11,: that dependl ou where gaa asr 

going t amak. ihe biggett pWits . 

Tbm xW ' USt question is iA. 4ame1ii41a with your 

i.avenliQry. 1htdar UW 14" va1tbod, . l2et' ia Vow aplat.n at ar 

pareomt ti,ms i! Wu b•d Saet . +out at the bagtsaUg ot' last yrar, 

how seobof a saaiog woalA we have had if a!e lta& boam out? 

1M7D1W 1PIMPUs? bad aama thing ces i LIFO for 

you ; Ysort' of al3tiolpa~'iid' oomeboOdy wE1t3ld' oak Ma • 

W*Uo ; Ur. 3 e0r Ti y4 11 kpewg , the .11 a'!#y ' t11IMe 1 hat 

question haa : bew a sked I AJaoUld bs.r a pat answar, but 1 ' really 

don 't . Z' do Iaavs an anamw. G1D .~ 


W. SWRY1 BtilY tt is the aoet paro :fitabla!. ~ 

FRUSSDBOf' TiMPZdt Who ra7pr4l N 

xRR MItRts Reynolds Tobaoao i 

PRBSIUXW TXKPLX't 1IEb$ ar* th .y't' Wie2l,, awr reason

for not a+dopting LIFO is that it ie only appliaable in~ a period 

of rising prioes, and if we adopt it I doubt very muoh Ty we 

s®uld' axitmb back again to our preaeut averaging method because 

we vaald got some r+ssiatanoo 3~.u the Imteraal ReveAwe D.partmeat, 

I aalsur+ ., 

MR. 9MY! V'ow nxLth~ would the saving boItt been? 

PMIDBWT T=PLS t' Tbi s' year t 

ilR. HENR'Y`= That isi right, sirw 

VM7VM TJWPLES Oh, I oaa't tell yai It 

rmId! reduee tb* earnings aboat~ 84 aonts,,, so t.hat it yoa ei 

!'Sprr the essb!_llanr, mUoh I +Wi just lilNm ihat,, -it u,tdet 

giaro gow amindiaatian . 

lt4A.T0MM ' JMSMKt I bappia to be Dartioularly 

intereated,' in adwrtiaing . .Doast youth3,nk that in this age +ot 

QivirrsitioatiaAn se are Isltaiag too be4vilF to .ard TR, porbrapa ., 

and not asLng •aoaekpr3artmadS.a! Aata,ally Ibelieve tbr:t a 

prInt asssage, a visual aoasagw,, !.a cow that Ss r.1ained,, and I 

thiuk p.caple get amre cut of it . 

PR93ZDXN1' TAi'"s,Rt! We11, while I' srapbasisM! im my 

talk anr tol*visien progr~, I' did ' not msaa to do*ar,pharisa 

prS,ut . L!' ym are itn the. aQvortising bsts ixNSS you lnoR fulhl 

well tlat we ase a lot at" prlat advertising for +osr major 


44

proftats . 

MWQAIR', MBACKt Xet as mob as 7m att . '1V, ba'+ 

eaast ariglt now I knowym ar . asfs4g a inited ' print progr.a 3:1% 

N+lw Yeoc'k Qibl . 

'TiNjul, 'Xoi .. V#.l4s MM A" vxuw 

ralibw ldm #iTlt GA1 m4p sx tbe"My wors tbxw"h t? e , 

amto + A 'O "a Mole Ot . that 't 

dally prom ia I" vwk

li w i I agrew with you that t1l*TL8fCQ f:.& one Mal 2# . 

stam, but 1!t vts WkO 4 74atk rrt nmothrr m0di0% •blah .+o~rt tt 4ast 

1" 4" paaqYs ewA t3aat U tbr i.s"ridurI stoekh#3A+wO 

l hrWUMMa s]wil0aM aSue* 1'*4, a-ZA 1OtLU 

veme 3a4YWltb trrq V*Mx-wm aaaw to a. 

i~ Outhi auNv bIm ;Ow MA ash" mar . *UZI -tiga4tts pwicl" 

I OMMUftOAswW tb* Va"ttaci, bxt I 

Is sm oiga"tto ym .rn anOw sod Ia wiU ha.. 

aOWM ta WWX7 -&b*%&# 4# 60 !.a X"to' 

X v~+t x~ Waia~ia~t ~1~ s ~lt rr~r 

~. `:&A l on, Ow* *' wkatsAg Muft"Wr "ILU U 

hot (AW3 .+eUIr)' 

~l~~lns 

ACQB It« =TAG t l voraU liW to aak yai a qn.a- 

t3ft# OW at na! is :Oftt 6%0 witbmt Uqiag dilwd, all tbt .r 

tOrrr 3OU41ra, bO!s.aast''I ' VM&r$t"' U a9XTMtioW tbsY baTO aril 

s'l~1w~ 1r~at p# ~ai~ tbft ,r Apo 1bry l67d +erv"'# IV a"is#*y too 

ot 

t 


h 

`Q' 

saiiUM" ~ JcA1FKX :s Sa ~V ~#a !~#or ~ wo ' ym : rofon4ft ~ 

lORS wrmM ; ' Zbtvs veaai.ld sev"Mi 3n the past 

~ . 

~'

7eat+, auA ibf, m.ra not dat+rd . 

MRSIMT TWPZA : I daO It lWoW Vlaat 70A ar* bS1,k+w 

Ing about, bon. eti3.y. I veuU li1ce to so* om of tGhe . iat1wa . 8Rr 

you ba.a are 1 : 

MR. OMAti'1: I laawM Om/l . WLU :xwo, 

gSMM# It Isa 3.'tter al~+mt paettaiel 

P'rci e Ie To 

o~r ttom to the St.a1cb&2 ct.rS! ,~tb , PrO r, 

. 

'lWX3Ct TUt UItt*rOst pMMOdiVOld 

waatt to dU of aw sto lkho3dora,, Tm vudwiat4=1 , anA . %b ltt 1o 

.q cilbi a sa*lf!' #u et tAl #a+i' It vas; 1iZrlr.loro& x&UA& $ s 

U1Itw . 

p~4~lior 

A~~1I111 

par, stodA th+t trst 400 I got„ X VU'1 .alil It 1qt0lc tO Tft . 

It 1412. got it. , 

TUnA i %*Us it - Umol mAJuitmN~'i' 

PAT 3A ik*: 3at*s# ft"K7 StatrMt 7oa 

*naloosd ' a sUp risaarr.adiag that Us "r#h*Moq% "l,ts to re. 

ae'" tbrl l asvb3A toSatiaqs a" also tubt a0i"t Obs, romvral otbht 40t1' exsUrion and 

: the 4 ' ptr tiwz% d1rLR*d evedit „ ; WeRM 

lilw to lmau if it rol b. rist, to a4d to Oai, to txwUido a ~ 

~ 

Utt]a a3.ip writing s,posifteal1y ftat tbo~a~arl~ sbamld W ~0 

. ~ co 


47

vi'it* to t1! Caltgr•011iqmg to WYuiQb Congro!#P j or evO!n to o'xl-, 

alorro an oarolops .40a aErtrago *Areharl,dlr,, alblal be nigbt 

agreo ar+d aaalA ],ikr to artto, dosawlt loaarr how tw bogtn aad be 

dooaom kasu to oriw or In ahat lannops to . .pnt his "Rnoxt . I 

wa&3d. ltbo 1o loner it' rmsoa]+laft peaibly loelv" !ra Ota rol 

qatrt ohiob Ifthft" joist s.at o espy of aUt#.s, or .vena 

littlo sllp, saying t3at#o alm)A' soa1 that partiealar slip to l 

4m 


48 

MPlat W1rll . I Wotll3d' aqggvrst triat 1hat 

kW ' of tl r.qua.t mIgM be m+dte of the Now 7toilk s1ook XsebsW, 

Who Itu mo~ en3~ be #yp,py to girtM y+aw tho Un~ bnt txlMy ii' 3 .1 

t.l7l yoa to whaw it .b"Id be ad4rrsseds 

RM MUM V!!tb the tbroat of war grevag 

stoadilg uors. i& Uos, fiwas wondering ohat oft.at #bat rom, .0 

haR. +aa rArtllard, it sonditieaa ssow trox*so . 

lWZD='1' Ti1tRAtWill, I 1hIa1c It womW+d bave tb+s . 

sovis general slttot' am LwilIari tbrt' it v*WA have an all tbe 

rost of us,, all otber! #n6totrios . Zt might : bRrs avm qnisb.r 

Wsst, ptrrhapr, on an inaoroatioaal ars h .ro or there, but I 

don't think tbat woca],A boa•peeifie hasaxd ' tw LorMard almo . 

It w*ald b1 smpleas.at tar all vt ua, but mtt opaeitf .oallac or ~ 

m 

parLiaularly Lovi11a'~d 

.a~d. w 

O 

0

#R. 1p04Xt I barro 400 eburom, .rbiah I regard 

vsal, :r bighl'y., ~ Y'lttO so 480itt4m . I b Lvo '~ n!D~ di'1+#rislaw *. $ 6nYy' 

mem# to lsbent to lbe sawsar.ai md t r UP . Tom3o my siDo rrw 

:s ttw 7"s •aad a ttdw opmatioa . CApplWa1 

Oat a!Z q1"iiftsi aoft& VY sfarobouior" to us"44 . 

49 

wwm °ustis #Np66110 

~8~~' ~f~ltt ~ba'o~K ~«~~PpLldrt~ 

Ort hftV VOYM.CAUV49 abftt tour , 

' - ZI$AWM IPWWWW* .4 

' M It, 11-W' 

T AWWWJF 

A-mmf,"_m"w wmmwwN 

ftWWMs' il ., 

adC W 3m WiVrcO I a*" ust we "Jam aw tl"it rr bate sm fw 

Oeiiwbtly ioiwe AMa.r 3jjr Ns toll,w *at 

oeo-. :d"xe brm. I bs", 0- ~r WOLISSO to mo.t .ant Wlc 

~ss 

*ou!4' a+t ~ut~s ~3N„ ast T: wft3d UJw to "pN" !u#r. 

err4"ifts, aad = 40 lsw 

~1t1~ ~ aMt~~ ~ +00~~14~ it Is Uft 41mg•l* t1m mw 

anr iAS", Onr PUMUG 40 eaPURI OXPOadituw,, . 

~savw"ltis~`,iv , am& smT *w!r taO"i of Ott 3n*&"fiii 

~r~tN, a~ad t]sat if' jtqarwrl"' #teoMsmor "d pk*lio rOiaUMa1 . 

Mr! -l'rtw;, lopUm1ely, 0 q, to UM polui .bsu* we kRta tlrr 

urot t ambw of srm" as'lARW" 

. 

is somlul.vabl,T Or.#r #000" 


+vW 3~+~#lln~ . _' #~l,t~ oa~ +loalat 

co 

NI 

w' 

~ 

~. 

~

ME31DO'3"' T'SM PrZ i t3vea 4Ci , 

IR. AUWSTt ft47E' i0,00C!' taUy . Aud thii' 

emivo!'' aooft bIOtstmosst it ' mNus to swg awtiomu* we ha'IC'e' th4 

petm tia2: ef tQiaW a4wlestx'riin p epilr s ; th#o~vW" the 

#~i~~ra !'ras the roaRr, t3e iftembLR tm$3*mm fto'bmb~mw a . 

Sa]leasan OiD*e 1"#; 4tdaCMat 146 a. a ateel&G7dW, marO ttbft 

Imt o%M3aa hiU daare+r of -Orety, .rton he spasared th. ievlaLas4' 

parealuat o Aad I vanid 3rops tMt .rf ai&t eblase aw ' jwll .sy, brro 

w0h aQm ot sw opm dew utwrm savs.iv.s, vatwo" 

saa~tst 

aed fa* slaalbsma•, hetwenswaag••rnt and tbe . lsamosa1 aaw 

y at Lp"r so U. tsh.r.bsUars slot ' 1serw"! la 

ambar and. f19 S,fterast'w 

? be lari{.a ths t tbs" is m ah.MhaLiOV : 9 ..Nnt +• 

aad f of e aw.., this Ss, 1ho old SOW7 of tlya abarrebi wo .ar* 

taild.ng of *e PsoPi : fte efto to oh*"b arA n .t talhlux e t tb+oss 

rrbo sfty *ray 40- batt I ' 4enlt~ lrhihlc that salb+edjr hsrt bos sruoUWr 

ocupMytS preftets ' at bmef. I tbdL*jt' be bag tAvUUi4'fs ' pPQdu4ti ., 

xad, uses th.m . I balLerro" for example, th+r tima bas eew ' that 

rs sheald, gst avay frm Us ar%baie i .do& ef wJdAg a fr*pwtr wrs 

ay.ar .?2te+r e are eoapaWs tal.y, tbut ssk* oswiauma 1 wperti+r, 

T 

qparCerly rsycs'ts. and a~ woath],y "pwts « This Ss * s .ttsr T 

wW 

for' zswageuNnt to dotweift as.d the: Seard to detsmUw, but 1' do o 


~ 

~ .

ttiiult,, aiaat I do hope, that rur management wvu]d aanaider a 

bRroader tn& sn lxvgvved yub2io rsl,atio®s' . rielrIroinle' . 

xeeiking Od3QQM• (lP#R'IAUSO) 

ArA nov, it' I aa?, I .rould l.tW to move that the 

1tR« OXIaINTr jitst a minutw. What U ow peL4my 

46 ' qwar"rlT aV ss~ui:~l rspovtsY' Way rr. galt thrt on the . 

rseard ftrst!! 


PR=ZDlqfT TitAit We i,sas a gsnto"ting raport . 

sA Wd s jur, as ais di.d Ust Vn.ar omd have 4Ons In the past, at 

Us !ad aZ'"' aasb qurtar1;F pr'iod, szeIIp1t the 3;ast, 'ns giww rs+ 

]+esses to'tb:'_ *Prssg ft3abara glx+erah v+arrisd, snd ' Ar hsw 

103S thnt the. t .bo nrn Inti.rrst.d in what happsaei d=3ng an y 

giren qurt.r e an raatiZy scrr i;1 themselves of lbatSal+arrsati. sa . 

3M. 4'SLBWs Mighti' suggest that, having b .ard 

ttr two points o!` .~~,*v, lt the dividend Qbsoks hsv* a stn!'tsr,, 

*rIer.r ym ar* smdIng out to the Wa+r, or au7tmiug lilrs that, 

saw be o+osd+anirod amd be pnt l.nt* Vot„ srA l think' lbat' gaa 

alom th+ 3'tess of 1hs thing the gentlsum before me mar+ti'omnol, . 

Now, bnl*rr 3joiw in the suggestion ve A'o s,ECjawn, 

I tbin1k this vortiaag shonill rise in wnrw7 o!' Mr . Wont so thrlt, 

t+as, is part ot' the r.+s+mrd ofthis me .isi'ng* 

MUDAlltT TWPWs 3oeond tbaL . si+art3.on . 

51 

Q-) 

.T 

CQ,,. 

~ 

O

a$ j tiuaru . 

.el, no . 

('I%* audi.nae stood tor a minute .)' 

MSIgJWT :=F~'s sTbsre haar bten a sotian to 

(Tbe n+atim, .ai d'nIy socondrd' .) 

FNMw81f TXMA ; A11 i .n ftvw siey' t4osopp9s 

4b* action is oarrisd, and tlaem"Waa itrnU . 

adjowwod .Yon are aU iwiUd to join ns for lv=b*a, vhLsh is 

s4adYla tb* rsam . 


('I9enQR1t1ng adjONwA+Od at 181&4 otoLiOk p, lt .) 

IA

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