Future Shadow

In 1,000 and more U. S. daily newspapers, and in many a U. S. magazine, advertises American Tobacco Co., selling tobacco in many forms but particularly in the form of Lucky Strike cigarets. Turbulent has been American Tobacco advertising, from its extreme use of the testimonial technique to its famed "Reach for a Lucky instead of a Sweet"--a slogan deplored by conservative advertising men, resented by the candy & sugar industries, rebuked by the Federal Trade Commission. The current American Tobacco Co. campaign, still associating cigarets with slender figures, is built around the catch line of "avoiding that future shadow," pictures trim and athletic youth casting a fat and flaccid middle-aged shadow. Monstrous indeed are the shadows in the Lucky Strike series, almost out of all human proportion. Yet while Camel cigarets have advertised smoking pleasure, while Chesterfield cigarets have maintained that taste is the cigaret's vital quality, while Old Gold cigarets have compared themselves to Rudy Vallee, radio crooner, and many another swift and contemporaneous success, American Tobacco and Lucky Strikes lave been enjoying prosperity in an unprosperous season, have made profit in an unprofitable year.

Last week, indeed, George Washington Hill, able and aggressive American Tobacco president and dictator, announced a 2-for-1 stock split, an increase ($8 to $10) in dividends, and a doubling of 1930 profits over 1929. Yet American Tobacco stockholders have been asked to approve an increase in common and common B stock from 3,000,000 to 6,000,000 shares, with an extra dividend of $4 on the old stock and a $5 dividend on the new. In 1929 American Tobacco showed net earnings of $30,182,669; on the basis of the 100% net increase announced by Mr. Hill it must have earned some $25,000,000 for the first five months of 1930, would look forward to 1930 total earnings of some $60,000,000.

Mr. Hill specifically credited advertising with the greater portion of American Tobacco's 1930 success. He referred proudly to the editorial quality of his advertising, judged that it was effectively competing, in reader interest, with the non-advertising columns of the publications in which it appeared. Not surprising was his accent on newspaper advertising, since the Lucky Strike campaign has been essentially a newspaper effort, supplemented by magazine pages but relying upon its daily appearance for its greatest effect. Mr. Hill added that his 1930 advertising appropriation had been increased over 1929 by $2,300,000; an increase which would give to Lord & Thomas and Logan (American Tobacco's advertising agency) an account spending more than $14,000,000 a year. The dividend which American Tobacco will pay Sept. 1 will be the 100th consecutive quarterly dividend on American Tobacco Common.

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