Front Cover
 Title Page
 Table of Contents
 Part I

Title: The cigar industry of Tampa, Florida
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00055151/00001
 Material Information
Title: The cigar industry of Tampa, Florida
Physical Description: 1 p. l., x, 169 p. : incl. tables. ; 23 cm.
Language: English
Creator: Campbell, Archer Stuart, 1899-
McLendon, William Porter ( joint author )
University of Florida -- Bureau of Economic and Business Research
Publisher: s.n.
Place of Publication: Gainesville Fla.
Publication Date: 1939
Subject: Cigar industry -- Florida -- Tampa   ( lcsh )
Genre: non-fiction   ( marcgt )
Bibliography: Bibliography: p. 93-94.
Statement of Responsibility: by A. Stuart Campbell...assisted by W. Porter McLendon...
General Note: This survey was made at the request of the Bureau of economics and business research of the University of Florida.--cf. Foreword.
General Note: Reproduced from type-written copy.
 Record Information
Bibliographic ID: UF00055151
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001644386
oclc - 01862904
notis - AHV5875
lccn - 41009309

Table of Contents
    Front Cover
        Front cover 1
    Title Page
        Front cover 2
        Page i
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    Table of Contents
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    Part I
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Full Text

The Gigar Industry

Tampa, Florida

Director, Bureau of Economi
and Buinem Research
SUnivenity of Florida

Assiitd By
University of Tampa

September, 1939





~'If ~

The Cigar Industry

Tampa, Florida

Director, Bureau of Economic
and Business Research
University of Florida

Assisted By
University of Tampa

September, 1939

' ^


Since its establishment about ten years ago the Bures of Bco-
nomic and Business Research, of the University of Florida, been
interested in all of the industries in the state. It has de sur-
veys of several of the leading ones. It welcomed the opp ity
of investigating conditions in the cigar industry, one of old-
est in the state, now suffering from various maladjustmen
problems. The Tampa area, representing largely the Havana odupers,
has been most severely affected by these conditions. The try
in other cities of Florida, sudh as Jacksonville, Quinoe, tow,
etc., is mostly mechanized and has not had the same probi to deal
The Bured" of Economic and Business Research was, the ore,
interested in the invitation issued by a group of Tampabu ess
men representing a special committee of the Tampa Chamber Com-
merce, to make an investigation of the cigar situation in
and elsewhere, with a view toward finding out what was wro with
the industry and what measures could be taken to correct t dif-
This committee was formed in the late spring of this *r by
President Sweeny of the Tampa Chamber of Commerce for the pose
of attempting to find solution for the problems confront the
cigar industry. The members were carefully chosen from am prom-
inent business and civic leaders of the city. None of the
connected with the cigar industry in any capacity. The me Oe of
the committee are: Nessrs. Carl D. Brorein, Chairman, D. McKay,
J. A. Griffin, E. P. Talliaferro, J. A. Sweeny, Ralph Nich on,
Ray B. Cralle, and P. J. Gannon.
After advising with both workers and manufacturers t com-
mittee concluded that an independent and impartial study o
facts and factors affecting present conditions would be of at
help to the industry. To this end the Bureau of Economic
Business Research of the University of Florida, was request to
make a fact-finding survey of the cigar industry in Tampa, ana-
lyze the facts,and include recommendations for the gobd of In-
It is felt that this survey should be singularly help in
that it is entirely disinterested. The University has no a section
with this industry and its sole objective is.to render what d it
can to an important Florida activity. Likewise none of the m-
bers of the staff making the survey are connected in any wa ith
the cigar industry, or have any interest in it, outside of pres-
ent work.
From beginning to end the survey was made in a strictly par-
tial and fair manner. All the facts available were gather om
reliable sources, and checked and rechecked for accuracy. is
realized that some of the facts presented deal frankly with stoms
in the industry and with characteristics of individuals com sing
its various groups. This was not done to embarrass anyone, t to
point out that there is a direct and important connection n
these customs and characteristics and certain problems of t in-
dustry. In fact, it is only by changing some of the custom
practices that the problems can be solved.
In the survey the office and plant records of all the a-
nies comprising the Tampa Cigar Manufacturers' Association in-
spected carefully. The nineteen companies in the Associatio : A,
Santaella and Co. Perfecto Garcia and Bro., Oradiaz-Annsa Co.,
Garcia and Vega, Regensburg and Sons, Corral, Wodiska
Cuesta Rey and 6o., Morgan Cigar Co., Jose Arango and Co., el-
ino Perez and Co., La Integredad Cigar Co., Berriman Bros. .,
Salvador Rodriguez and Co., Arango and Arango, Lopez, Alvar
SCo., Preferred Havana Tobacco Co., J. W. Roberts andiSbh, VI son
and Co., M. Bustillo and Co. '
All of these companies were most helpful in i te' work,
available their complete records for inspection. The exami on



included the operations of each year as far back as 1925. In most
of the plants the records were complete, but in a few some data per-
taining to past years had not been kept.
Besides collecting data from the plant records of the cigar
companies, much valuable information concerning the development and
problems of the industry was secured from a series of interviews.
These were with officials in each of the plants, with leaders and
members ,of the labor groups, with the attorneys for the manufactur-
ers and the labor unions, with the officials of the Cigar Manufac-
turers' Association,and with a number of the older citizens of
Tampa not connected with the industry, who are familiar with its
problems by reason of a close association with them over a period
of years. Various developments in the relations between the em-
ployers and workers in the industry were followed closely.
In order to compare the cigar industry in Tampa with that in
the nation, as well as to note certain national problems in the
entire industry, an inspection was made of cigar plants in other
sections of tre country, including the important producing areas of
New Jersey, New York and Pennsylvania. A representative of the
United States Department of Labor accompanied the director of the
survey on this trip. First-hand information *as secured in this way
concerning conditions in these plants, and excellent suggestions for
the operation of Tampa plants.
In the survey all published material pertaining to the cigar
industry that could be obtained was examined closely. Government
reports dealing with various phases of the industry were analyzed,
and use was made of their findings. Standard cigar and tobacco
publications were inspected. Reference sources were consulted
for general economic data bearing on Tampa's cigar problem.
.As there is a serious unemployment problem in Tympa, center-
ing around a large group of unemployed cigar workers, the survey
included an investigation of this and possible means for its allevi-
ation, as well as the business problems of the companies.
It is felt that the survey, while not exhaustive, covered
about all that could be investigated xn the time and with the fa-
cilities available and presents an authentic and fairly comprehen-
sive picture of the Tampa cigar industry. It is sincerely hoped
that efforts will be made to follow the recommendations given,
which have for their objective the correction of serious problems
in the industry. In fact it can be stated frankly -and without ex-
aggeration that, unless certain changes are made in the Tampa in-
dustry, it will not survive. It has been declining for some years,
and will continue to do so unless something is done to check the
decline. The way out is indicated in this Report. Refusal to
take some measures along these lines means eventual failure for
the industry. Some plants could survive longer than others, but
ultimately all would go, if present conditions are maintained.
The Report on the survey is divided into seven Parts, and a-
Appendix containing statistical tables. In Part I the problems
of the Tampa cigar industry are summed up, so that the reader can
grasp them immediately and realize just what the situation is.
Part II describes and explains cigar manufacturing processes,
without an understanding of which the nature of the problems and
proposed remedies could not be comprehended. Comparative costs
of different methods of manufacture used throughout the United
States are likewise given. Part II deals with the growth of the
cigar industry in the United States, and its problems. This is
given to facilitate an understanding of what are purely local
problems of the Tampa cigar industry, and what are encountered by
the entire industry. Part IV traces the development of the Tampa
industry from Its 'earliest beginnings to the present time and
shouldbe of interest to all Tampans, while Part V shows the im-
portance of the cigr' industry to the city. Part VI explains
the financial results of operations of the Tampa cigar plants
for each year back to 1925, when the industry was prosperous. It
is eloquent statistical testimony as to the necessity for improve-


ment of conditions in Tampa. Part VII includes recommendations
for the cigar industry of Tampa, based on the study of conditions
in this city and elsewhere.
The first and last sections of this Report thus state the
problems in Tampa and offer solutions for them. The 1iervening
sections go into the situation fully.
In making the survey, 102 statistical tables were separed.
These present factual data concerning conditions and t ads in
the cigar industry in Tampa and the United States. Be ase of
the large number of these tables, it was considered ad able to
place them all in the Appendix, instead of the body of e Re-
port. The reader of the Report is requested to refer b the
Appendix for each table, when it is mentioned. The ta as are
numbered consecutively and can be located easily.
It is desired to acknowledge with thanks the coop4e tlon of
the Cigar Committee of the Tampa Chamber of Commerce, t other
citizens of Tampa supplying information, of the cigar fac-
turers and their representatives, of the workers and t r
representatives, of the United States Department of Lal and
other Federal departments and cigar-associations supply g pub-
lications, in the making of this survey. Thanks are 1 wise
made to the Tampa Chamber of Commerce, its able secret Mr.
G. D. Curtis and his accommodating office force, for su ying
office space and extending many courtesies to the staff urgingg
the survey.
Members of the staff making the survey include A. uart
Campbell, Ph.D., Director, (University of Florida), W. rter
McLendon, M.A., Assistant Director, (University of Tam ,
Harve Truskett, B.S. and Truman Hunter, B.S., graduate udent

A. Stuart Ca ell

W. Porter Mct~ndon
September 1, 1939



1 The Human Element in the Cigar Industry of Tampa ........ 1
2 The Cartabon................................ ............. 4
3 Lack of Modernization in the Tampa Plants.................. 5
4 Inadequate Advertising by the Tampa Cigar Companies...... 6
5 Union Control of Labor in the Tampa Cigar Plants......... 6
6 Surplus Cigar Workers in Tampa........................... 7
7 Differential Between Labor Rates for Shade Mold and
Havana Mold............................................ 7
8 Increased Employment of Women in the Tampa Cigar Plants.. 8
9 Custom of Free Smokers................................... 8
10O- .ality of Tobacco Used in the Tampa Cigar Plants......... 9
11- Decline in Cigar Consumption...................... ...... 10
12- Trend Toward Smoking Cheaper Cigars..................... 10
13- Competiti6n From Machine Plants.......................... 10
14- Competition From Plants Using the Competitive System ... 11
15- Necessity For Stabilizing Conditions in the Tampa Plants. 12


1 Composition 'of a Cigar................................. 13
2 Preparation of Havana Tobacco in Cuba.................... 14
3 Sources of Domestic Tobacco Used in Florida Plants....... 16
4 Processing of Tobacco in the Tampa Plants.............. 17
5 Classification of Cigarmaking Processes........... ..... 18
6 Spanish Hand Process of Cigarmaking .................. 19
7 Hand Mold Process of Cigarmaking ....................... 20
8 Competitive Process of Cigarmaking ....................e 21
9 Bunching-Machine, Hand-Rolling Method.................- 22
10- Automatic *Machines............................. ........... 25
11- ComparatiVe Costs of Different Processes................ 24
12- Processes Used in the Tampa Cigar Industry.............. 28


1 Summary of the Problems of the National Cigar Industry... 30
2 Development of the Cigar Industry in the United States... 51
3 Production and Consumption of Cigars in the United States 35
4 Foreign TradeTand Consumption of Tobacco Products........ 37
5 Comparison of ta; Cigar Industry with the Cigarette
Industry................................................. 57
6 Operating Costs and the Results of Operations............ 59


1 Early History in Key West................................ 43
2 Establishment and'Early Progress in Tampa ................ 43
3 Business Organization in the Industry.................... 45
4 Migration of Tampa Plants to Other Localities ............ 46
5 Evolution of Employer-Employee Relations................ 47
6 -Organization of Employers and Employees.................. 51
7 Recent Developments in Employer-Employee Relations....... 53



1 Effect of the Cigar Industry on the Growth of Tampa. ,... 56
2 Importation of Tobaocco From Cuba...................... .57
S- Advantages of Tampa for Cigar Manufacturing.......... -58
4 Problem of Unemployment in the Cigar Industry of Ta4 *... 60


1 Scope of the Investigatio......................... ... 63
2 The Cigar Industry of Florida. ...................... .. 64
3 The Cigar Industry of the Tampa District............i..... 66
4 Tampa Cigar Plants Production and Sales............ .. 68
5 Tampa Cigar Plants Financial Statements..o ........ .. 70
6 Tampa Cigar Plants Chief Costs of Production: Lab
Tobacco, Taxes ..... ................................ .. 78
7 Tampa Cigar Plants Other Costs.................... .. 74
8 Tampa Cigar Plants Employees and Wages........... .. 74
9 Tampa Cigar Plants Costs of Different Processes... .. 76


1 System of Manufacture ..... .................. .. .. 7
2 Technologioal Improvementsa....................... ..
3 Advertising and Selling Methods................... ..
4 Labor Relations................... .... ..........
5 Wage Rates..... ......................................* .. 8
6 Internal Economies in the Plants.................. .. 84
7 Plant Customs........................ ... ..... .. 86
8 Customs Appraisal of Tobacco.................r ... .. 87
9 Consolidation of Companies........................ 8e
10- Welfare Work........................... ............ 88
11- Surplus Cigar Workers................................ 89.
12- Unity and Cooperation............................ .. 91


: J

(Statistical Tables) Page

Table 1 Percentage of Long Filler and Short Filler Cigars
to Total Production in the United States,
1920-1938..................................... 95
Table 2 Production and Value of Domestic Cigar Tobacco by
Types in the United States, 1956, 1937.......... 96
table 3 Production and Value of Wrapper and Filler Tobacco
Grown in Florida, 1935-1937....... ............ 97
Table 4 Classification of Cigar Making Processes Used in
the United States, 1939......................... 98
Table 5 Comparatie Amount of Hand and Machine Production
of Cigars in the United States, 1937............ 98
Table 6 Approximate Amount of Labor Required to Make One
Thousand Five-Cent Cigars by Various Manufact-
uring Methods in the United States, 1956...... 99
Table 7 Annual Operating Costs for Bunching Machine, 1959. 100
Table 8 Costs of Cigar Manufacture by Four-Operator, Long
Filler Cigar Machine, 1958...................... 100
Table 9 Comparative Cost of Manufacture of a Five-Cent
Cigar by the Machine Process, Combination
Machine and Hand Process, and Hand Process in
the United States, 1956........................ 101
Table 10 Automatic Cigar Machines Used in Florida, Classi-
fied by Cities, 1939............................ 102
Table 11 Labor Wage Rates for Cigarmaking, Used with the
Competitive System in Cigar Factories in New
Jersey, New York and Pennsylvania, 1939......... 102
Table 12 Comparison of Labor Costs and Earnings of Cigar-
makers Under the Spanish Hand, Hand Mold, and
Competitive Systems of Cigar Manufacture with
a Ten- Cent Cigar, 1939......................... 105
Table 15 Distribution of Cigar. Machines in the Leading
Cigar Producing States, 1958.................... 105
Table 14 Average Hourly Returns to Hand Cigarmakers and
Machine Operators in Different Factories, 1938.. 104
Table 15 Number of Cigar Manufacturers in the United States
1910-1957...................................... 104
Table 16 Number of Cigar Factories with Classified Output
in the United States, 1921-1937................. 105
Table 17 Production of Cigars For Consumption in the
United States, 1863-1938....................... 106
Table 18 Tax-Paid Withdrawal of Cigars For Consumption by
Classes in the United States, 1920-1938........ 107
Table 19 Tax-Paid Withdrawal of Cigars For Consumption by
Classes in th6 United States, 1920-1938. Per-
centage of Classes to Annual Total............... 108
Table 20 Seasonal Indices of Consumption of Cigars in the
United States,190190938........................ 108
Table 21 Number of Concerns Manufacturing Cigars Exclusive-
ly, by Principal States, 1929-1937.............. 109
Table 22 Tax-Paid Withdrawal of Large and Small Cigars Eor
Consumption in Specific Leading States, 1920,
1925, 1930-1957................................ 110
Table 23 Percentage of Total Withdrawals of Large Cigars
Fot Consumption in Leading States, 1920, 1925,
1930-1957...................................... 1l
Table 24 Average Retail Prices of Cigars in 32 Cities,
Specified Months, 1920-1938..................... 112
Table 25 United States Imports and Receipts of Tobacco
Products, From Noncontiguous Territories, By
Products and Countries,' Fiscal Years, 1912-1937. 113
Table 26 United States Exports and Shipments of Tobacco
Products to Noncontiguous Territories, 1909-1937 114


Table 27 Estimated Consumption of Cigars and Cigarettes
Europe 20 Countries, 1920-195.............. 115
Table 28 Per Capita Consumption of Cigars and Cigarettes Y
European Countries, Compared With The United
States 1932............. ................... 115
Table 29 Per Capita Consumption of Cigars and Cigarettes 11
the United States, 1900-1938 ..... ......... 116
Table 30 Value of the Products of the Cigar and Cigarettj.
Industries, and Their Percentage of the Value ,
Total Tobacco Products in the United States, .
1909-1937. ........ ........ ....... ....... 117
Table 31 Number of Wage Earners in the Tobacco Products
Group in the United States, 1919-1937......... 117
Table 32 Average Weekly Hours Worked in the Tobacco Pro-
ducts Industries of the United States, 1919-196 118
Table 33 Expenditures For Cigar Advertising of Leading
Cigar Companies in Various Channels, 1938..... 119
Table 34 Expenditures for Cigarette Advertising by Four
Leading Cigarette Manufacturers, 1938........ 119
Table 35 Wages, Material Costs, and Value of Products in
the Cigar Industries in the United States,
1859-1937................................... 120
Table 36 Cost of Materials and Labor Compared with Total
Value of Product Cigar Industry in the United
States, 1929-1937. ........................... 121
Table 37 Average Weekly Wages Per Worker in the Cigar In-'
dustry in the United States, Florida New Jera$
Pennsylvania, and New York, 1927-193'7 ..... 121
Table 38 Summary Indices For the Cigar Industry in the 1
United States, 1919-1936.................. 122
Table 39 Internal Revenue Receipts From Tobacco Products
the United States, Fiscal Years, 1913-1938 ..# 123
Table 40 Internal Revenue Receipts From Cigara, By States1
and Territories, Fiscal Year Ended June 30, 19l 124
Table 41 Percentage of Net Earnings to Net Worth, of
Leading Cigar Manufacturing Companies in the
United States, 1927-1938...................... 125
Table 42 Earnings Per Share on Common Stock For Leading
Cigar Manufacturing Companies in the United
States 1922-1938.............................. 126
Table 43 Pioneer 6igar Firms of Tampa, 1886-1905.......... 127
Table 44 Major Cigar Factories Closed in Tampa Through
Removal to a New Location, Consolidation or
Dissolution, 1928-1939......................... 128
Table 45 Cigars Produced in Tampa, Population Census of
Tampa, 1900-1939................ .............. 129
Table 46 Quantity of Cuban Tobacco Imported by the United
States, Quantity of Havana Tobacco Imported
Through Tampa, Per cent of Total Havana Tobacco1
Imported Through Tampa, Total Value and Averag*.'
Value Per Pound of Tobacco Entering the Port of
Tampa, Florida, Calendar Years, 1929-1939 ...... 130
Table 47 Tobacco Imported Through the Port of Tampa,
Florida, 19W9-1938.......................... 131
Table 48 General Rates of Import Duties on Unmanufactured'
Tobacco 1883.-1939....................... .., 132
Table 49 Import Duties on Unmanufactured Tobacco From Cub4 I
1883-1939. ......... .......................... 132
Table 50 Band Cigar Plants of Tampa (19), embers of Tamp
Cigar Manufacturers' Association, (Classlflcat
According to Type of Tobacco Used), July 1, l9 133
Table 51 Establishments Producing Cigars, Cigarettes and
Other Manufactured Tobacco in Florida, 1915-19 134
Table 52 Location of Cigar Establishments in Florida,
July 1, 1939.................................. 134



Table 53 Statistics for the Cigar Industry of Florida,
(Larger Establishments), 1890-1937.............. 135
Table 54 Tax-Paid Withdrawal of Cigars For Consumption By
Classes in Florida District, 1920-1938.......... 136
STable 55 Tax-Paid Withdrawal of Cigars For Consumption By
Classes Percentage of Total Made up of Each
Class, Florida Distric.t, 1920-1938.............. 137
Table 56 Tax-Paid Withdrawal of Cigars For Consumption By
Classes Tampa District, 1920-1938............. 138
Table 57 Tax-Paid Withdrawal of Cigars For Consumption By
Classes, Percent of Classes to AnnUal Total,
Tampa District, 1920-1938...................... 139
Table 58 Comparison of Cigars Sold By Plants in the Tampa
District, With Sales By Plants in Florida, and
Cigars Manufactured in the United States,
1920-1938 ..................................... 140
Table 59 Estimated Payroll of the Cigar Industry in the
Tampa Area, 1926-1938.................,....... 141
Table 60 Number of Employees in Tampa Cigar Factories
Including Machine Factories, Separated as to Men
and Women, 1930 and 1939........................ 141
Table 61 Classification of Tampa Cigar Plants According to
Capitalization, Sales, Output, and Employees,
19 Tampa Plants, 1938.......................... 142
Table 62 Index of Sales of Cigars, By 19 Tampa Companies,
1926-1938................... ..................... 142
Table 63 Tax-Paid Withdrawals of Cigars For Consumption By
Classes, 19 Tampa Factories, 1926-1938......... 143
Table 64 Percentage of Tax-Paid Withdrawals of Cigars For
Consumption By Classes, 19 Tampa Factories,
1926-1938........................................ 143
Table 65 Tax-Paid Withdrawal of Cigars By Classes of 19
Tampa Factories, First Six Months, 1939.......... 143
Table 66 Withdrawals of Cigars For Consumption By Classes
From Clear Havana Factories of Tampa, 6 Tampa
Factories, 1926-1938............................ 144
Table 67 Withdrawals of Cigars For Consumptionby Classes,
From Clear Havana and Shade Factories of Tampa,
8 Tampa Factories, 1926-1938 ................... 145
Table 68 Withdrawals of Cigars For Consumption By Classes,
From Shade Cigar Factories of Tampa, 5 Tampa
Factories, 1926-1938............................ 146
Table 69 Percentage of Total Withdrawals of Cigars For
Consumption By Classes, From Clear Havana Fac-
tories of Tampa, 6 Tampa Factories, 1926-1938... .147
Table 70 Percentage of Total Withdrawals of Cigars For
Consumption By Classes, From Clear Havana and
Shade Factories of Tampa, 8 Tampa Factories,
1926-1938............................ .... ..... 147
Table 71 Percentage of Total Withdrawals of Cigars By
Classes, From Shade Factories of Tampa, 5 Tampa
Factories, 1926-19388........................... 148
Table 72 Percentage By Classes of Total Withdrawals of
Cigars for Consumption, From Three Groups of
Tampa Cigar Plants Manufacturing Clear Havana,
Havana and Shade and Shade, 1926-1938.......... 148
Table 73 Seasonal Index of Withdrawals of Cigars For
SConsumption of 17 Companies in Tampa, 1938..... 149
Table 74 Variety of Brands By Classes of 19 Tampa Companies
1939............................................ 150
Table 75 Composite Balance Sheet, 18 Tampa Cigar Companies,
1926-1938 ...................................... 150
Table 76 Ratios of Balance Sheet Figures, 18 Tampa Cigar
Companies, 1926-1938............................ 151



Table 77 Earnings on Invested Capital, 16 Tampa Companiesl
1926-1938..................................... 152
Table 78 Composite Profit and Loss Statement, 14 Tampa
Companies, 1926-1938 ......................... 152
Table 79 Percentage of Net Sales of Cost of Sales, SelliA
Expense, Administrative and General Expense,al
Net Profit, 14 Tampa Companies, 1926-1958 ....,. 153
Table 80 Cost of Labor, Tobacco and Taxes, and Their Per--'
centage of Cost of Sales, in 19 Tampa Cigar
Factories, 1930-1938......................... 154
Table 81 Cost of Labor, Tobacco and Taxes Per M Cigars
Manufactured, 19 Tampa Cigar Factories,
1930-1938....................................... 155
Table 82 Cost of Tobacco and Duties and Percentage of The*
Total Cost, 19 Tampa Cigar Factories, 1930-1938 156
Table 83 Cost of Tobacco and Duties Per M Cigars Manufic-
tured, 19 Tampa Cigar Factories, 1930-1938...... 157
Table 84 Percentage of Customs Duties, Internal Revenu, .a
Other Taxes to Total Taxes, For 19 Tampa Cigar.
Factories, 1930-1938.....................-. ...6 158
Table 85 Cost Per M Cigars Manufactured of Customs Duties,
Internal Revenue, and Other Taxes, For 19 Tampa'
Cigar Factories, 1930-1938........... .......... 159
Table 86 Internal Revenue Taxes on Cigars According to th:.
Principal Internal Revenue Acts,-From 1909 to
1931.................................... ...... 160
Table 87 Tax Breakdown of a Typical Tampa Factory, Showinr
Specific Taxes As Percentages of Cost of Sales,,
1933......................................... 161
Table 88 Tax Breakdown of a Typical Tampa Factory, Showing.
Specific Taxes As Percentages of Cost of Sales,.
1938 .......................................... 161
Table 89 Cost of Supplies of 19 Tampa Cigar Factories,
1930-1938 ..................................... 162
Table 90 .ost of Cellophaning by Hand and Machine in a
Typical Tampa Cigar Factory, 1930-1939......... 162
Table 91 Comparison of the Cost of Machine and Hand
Cellophaning As Found in a Typical Tampa Fac-
tory, 1939.................................... 163
Table 92 Expenditures For Advertising and Bad Debts, Show*.'
As Percentages of Net Sales, 14 Tampa Factories,
1926-1938....................................... 163
Table 93 Estimated Cost of Free Smokers to Tampa Cigar
Companies, 19 Tampa Companies, 1926-1938........ 164
Table 94 Number of Employees in 19 Tampa Factories,
1926-1939....................................... 165
Table 95 Distribution of Employees By Department and Sex
in 19 Tampa Cigar Factories, 1939............. 165
Table 96 Average Weekly Wage and Hourly Earnings of Cigar-
makers, 19 Tampa Factories, For Sample Weeks
From Each Month, July, 1938 June, 1939....... 166
Table 97 The Wage Scale For the Spanish Hand System, Ef-
feotive in the Tampa Factories, 1934 and 1939.., 166
Table 98 Average Weekly Wages of Workers Engaged in Dif-
ferent Cigarmaking Processes and Operations, 19
Tampa Factories, Sample Weeks in Each Month,
July, 1938 June, 1939.......................... 167
Table 99 Percentage Distribution of Cigarmakers and Cigars
By Processes, in 19 Factories, Tampa, Florida,
1938-1939....................................... 167



Table 100 Labor Cost Per M Cigars of Different Cigarmaking
Processes and Operations, 19 Tampa Cigar Fac-
tories, Sample Weeks in Each Month, July, 1958 -
June, 1939....................................... 167
Table 101 Productivity of Cigarmakers in Average Cigars
Per Worker-Week, By Different Processes of Man-
ufacturing, in 19 Tampa Factories, July, 1958 -
June, 1939...................................... 168
Table 102 Average Number of Cigars Manufactured and Average ,
Wages For Cigarmakers and Other Factory Labor
Per Hour, Per 8-Hour Day, and Per 40-Hour Week,
By the Spanish Hand Method, Hand Mold Method,
and Machine-Bunched, Hand-Rolled Method, in
Selected Tampa Factories, Sample Weeks, 1938 -
1959........................................... 169

Pat I

This first section of the Report on the Survey of thbCigar
Industry of Tampa will sum up the problems of this industry in
Tampa. .
It is considered advisable to present a brief picture of
the industry's ills at the beginning of the Report so the
reader can have these before him as he goes through the e de-
tailed sections which follow. Figures and factual data sport-
ing the conclusions of this section appear in subsequent rt
of the Report. Persons interested in the Tampa situation, would
be able to grasp its main features from this first sectioti A
careful reading of the remainder of the Report will enabl -them
to fill in the gaps, verify the conclusions, and have a g6euine
understanding of the conditions under which the cigar ind* tries
of Tampa and of the United States are operating. .1

1 The Human Element in the Cigar Industry of Tampa.

In this Report all phases of the situation will be discussed
frankly, as it is believed that a frank consideration of a the
component parts of a problem is necessary for its solution,
In past years almost all of the owners and workers iq he
Tampa cigar plants have been Latins. At the present time 4out
two-thirds of the owners and nine-tenths of the minor off lals
and workers in the hand cigar plants of Tampa are of Latin x-
traction, chiefly Spanish and Cuban, with a sprinkling of ,al-
lans. This has had a decided effect on the cigar industry' ln
The Latin race has some fine qualities, such as a lo of
artistry, of beauty and romance, and of a leisurely mode .
living, interspersed with pleasure and gaiety. There are ame
very commendable examples of the Latin type in Tampa. As' .
class they are loyal in supporting their family members and
friends, and are tenacious in their support of what they b4ieve
to be a principle, or a right.
The Latin method of business is formal, leisurely and in-
hurried. Business is distinctly an avocation rather than avo-;
cation with them. Above all they believe in the force of 4astom
as applying to business, as well as to dress and to social, e-
havior. After a business transaction has been handled in At.
certain manner for a while, it establishes a precedent, anthat
soon has the binding force of a natural law. In such a casi the
parties Involved have the right to assume that the transaction
will continue to be performed in exactly the same way, and:|f
necessary to enforce compliance with the established mode.,l
This point of view assumes a static, rather than a chag-
ing business world. It does not allow for social, economic tor
technological improvements, that go with progress. It ten(to
tie the hands of industry, insofar as keeping abreast of tw
times is concerned.
The cigar industry of Tampa has felt the effect of thi
tendency to adhere to the old way of doing things. The fose
of custom is the most powerful force in the Tampa industry;-
day. Some of the manufacturers have no desire to improve hods
in their plants because they have always done things in th ald
way. Other manufacturers desire to make changes, but are -
hibited largely by the force of custom. Certain changes d red
by this group would be opposed by the workers as interfere


with some of their cherished customs, and so, with a set-up
and methods a generation old, the Tampa plants drift along,
declining a little more each year.
There was a time when the cigar plants of Tampa were very
prosperous. This was before the general smoking public had
turned largely to cigarettes and cheap cigars, and machine-made
cigars had begun to capture a major portion Of the market. It
was likewise before certain semi-machine devices for increasing
productivity, ana efficiency methods of various kinds, had made
their appearance in the plants of their chief competitors. In
those prosperous days, Tampa-made clear Havata cigars were '
known throughout the country as a mark of quality, and their
producers enjoyed large sales and big profit). To some extent
these advantages were based on regional monopoly, as the cli-
mate of Tampa was more suitable for the hand-production of
Havana cigars than other centers. Under such advantageous con-
ditions there was not much incentive or necessity for efficien-
cy in the plants.
Workers in the plants in those days received very high
wages. Surplus workers here and there in the plant, slow ways
of doing things, and waste of material, did not bother the
management at such a time. Neither did such things as inadequate
reserves, lack of sustained advertising and long-range selling
programs. Tampa plant owners and officials lived in an Utopia
which could not and did not last. With the advent of certain
factors mentioned in the preceding paragraph, the returns be-
came leaner, and the going more difficult.
It was then that the failure to follow business-like
methods of plant operation and careful management began to tell.
Sales shrank and costs mounted. Competitors began to capture
the market that formerly belonged to the Tampa clear Havana pro-
It has been mentioned that the true Latin is an artist.
This is borne out too well in the experience of the cigar manu-
facturers of Tampa, who were concerned primarily with the making
of a high quality cigar, and not sufficiently with the costs and
returns from selling the cigar. Hence, the management of the
plants was not as far-sighted as it should have been, the unsat-
isfactory situation of today being caused in part by this lack
of properly stressing the economic elements of the business.
The Latin cigarmaker also considers himself more of an
artist than a worker. This feeling has caused him to resent
plant rules and restrictions and oppose measures which are a
part of the standard discipline in American plants. He has
been irked by minor plant regulations to the point of resisting
them vigorously. He has a tendency to take things pertaining to
his work or his art, as he thinks of it, very seriously, which
frequently leads to his making a major issue out of a very triv-
ial occurrence. Once an issue is before him he will fight des-
perately for it, which helps explain some of the controversies
between the workers and employers in the industry. Many of the
employers for their part are just as stubborn about compromising
an issue.
There are some nationalities which are known to possess a
trait of direct and open dealing. They will speak their minds
frankly and openly, perhaps quarrel and get it over with, then
settle the matter and forget it. The Latins are not like this.
They will talk all around a point, hesitating to deal with it.
Then, perhaps, they will ndt say what they think, but something
else. It takes much time to get matters settled in this way,
and sometimes they are never settled. Sometimes a real or fan-
cied wrong which is never brought into the open becomes a matter
for brooding over months or years, Increasing in magnitude and
seriousness as time goes on. A settlement of the matter in the
beginning, even if it takes a quarrel to do it, would seem to
be much better.


The &Ltin manufacturers and the Latin workers are
in arguing about something a good part of each year.
grievances that should be settled immediately in the sh
before a joint labor board composed of manufacturers
men and then the talking starts. Trivial matters are
tied promptly by this board, but sometimes are discuss
days. Hours andeven day have been consumed in argue
the meaning of one word When negotiations started in
for the renewal of the contract between the manufao
workers, three weeks' discussion, with meetings every d was
necessary before the pregM le to the contract was aeed
In 1938, the o mittee or manufacturers and worker set to
adjust labor difference held 867 meeting lasting 497
Does it seem stage that the cigar industry of Tampa Is -
ging when so mok time is spent in talking and dia ee
The large tfa#lies among the atins have had their eat
on the cigar industry of Tampa. Plant owners have 'r sons,
nephews and relatives into their business in official ca l-
ties. In some instances these have proved capable office L
in others, a burden on the business. Foremen have seleo
many of their relatives for positions in the factories.
some of them family groups have persisted.
In some of the plants at various times foremen have *
their authority. They have been known to require bribes dif-
ferent kinds from the workers under them. Some have a e-
quired the workers to patronize certain concessions.
have occurred Qf morality in the factories, involving
sanction or participation of the foremen and their fri
Fortunately these instances are not common, and tend to dis-
appearing. They are mentioned with the hope that the l a-
tiges of them will be rooted out of the Tampa cigar
Some of the Latin manufacturers have maintained a be-
tween themselves and their workers. This may not have b in-
tentional, but simply a result of their social custom. the
same time it has resulted in a barrier between labor and
ment in the plants, which has widened as time went on
workers have resented this aloofness, and the relations
the parties have suffered because of it. For instance, anu-
facturers have never dealt directly with their workers
matter, but always through their plant managers or fo
Some direct dealings and personal contacts might help e e-
ably. Both groups have interesting and human personality and
individual contacts between them might enable them to a t
their objectives are practically the same, successful p
that will give a fair return to both owner and worker.
Some of the cigar manufacturers of Tampa have failed co-
operate with others. It is realized that most of them a m-
petitors, but as manufacturers in the same center, they
common interests and should support each other in matte volv-
ing. managerial problems. For instance, each manufact
be free to use the method of manufacture in his plant
considers best. Yet, some of the Tampa manufacturers ha aled
to support others in this right. At times they have eve joyed
seeing their fellow-maafacturers beset by plant troubles var-
ious kinds, and have not been very ready to qome to thel 4
The cigar manufacturers of Tampa are united in nme in ampa
Cigar Manufacturers' Association, but they should be unit in
fact and present a common front to problem in the indus
This would help a great deal in the promotion of prosper for
their individual plants and the oigar industry of Tampa.
The. igar workers of Tampa have had a hard time in t
years, and this has made them bitter. They have seen the wages
drop to an average of $13.86 per week, due to the slump
industry and the spreading of work so that more workers a
be employed. This practice, which will be treated'later, s
agreeable with the workers, and yet it meant that each o
ceived leas than he would if employed full time. It has wise



been a burden on the employer, in added overhead costs.
The high scale of rates for hand-made cigars which the Tampa
workers have always received is a matter of pride with them. It
recalls past years when not only rates were high,'but earnings
likewise. Then they earned high wages and were proud of their
occupation. Now the high rates in Tampa are hurting the indus-
try in this district by making the labor costs higher than in
competing areas. The workers have unduly stressed wage rate
rather than total earin s. If they could forget the o3 ra e
scale, and think ofincreased productivity and higher earnings
with the use of. faster methods and a lower scale, they and the
industry might be much better off.
A large number of the cigar workers in Tampa do not grasp
the present situation in the industry. Either from indiffer-'
ence, or inability to get the facts, they cannot understand it.
They rely largely on their union leaders for information. It
is believed that a good many of these workers would cooperate
in efforts to help the industry, if they realized its present
need, and understood what would help it.
Some of the Tampa cigar workers have acted as though their
reduced wage was directly attributable to the manufacturers,
which is very unfair. The manufacturers have some faults and
have made some mistakes, but in recent years they have been
paying all the wages the industry could stands Instead of
quarreling any longer about the matter, the two sides should
cooperate to the fullest extent in all matters pertaining to
the operation of the plants, and see if their joint efforts
could bring prosperity to the industry. The workers should
help, rather than hinder, all efforts of the manufacturers to
modernize their plants and install economies. When this is
done in a whole-hearted, cooperative manner, the cigar industry
of Tampa will no longer remain in a slump, but will compete
successfully with the outstanding plants in the country.
It was stated at the beginning of this section that about
two-thirds of the present owners of hand cigar plants in Tampa
are, Latin. Of the remainder, one-half are Jewish and one-half
old-line American. The Jewish owners are good plant operators
and excellent business men. They do not possess the artistry
of the Latins in making cigars, but have a shrewd talent for
Economies and a sound judgment for sales outlets. Many of the
cigar companies of the country have a combination of Latin
management in the plant and Jewish supervision over sales.
The old-line, American plant owners are fairly good business
men, but are drifting along with the tide of the Tampa industry,
hoping for better days.

2 The Cartabon

An example of adherence to old practices in the Tampa
cigar industry is the present use of the "Cartabon." This is
a detailed list of labor rates of approximately 200 different
sizes and shapes of cigars, and the principal salaried posi-
tions in the plants, .which was drawn up about 1910. While there
has been what amounted to a blanket decrease and subsequent in-
crease in this entire rate scale, there has been no individual
change of the rates since 1910. Is there any other industry in
the United States which maintains a set scale'of labor rates,
fixed in 1910? The Cartabon was originally drawn up to prevent
labor rate-cutting in the Tampa cigar industry, being of some
protection to both employers and workers. It now appears to
be retarding the industry by being too archaic and inelastic.
It is clogged by sizes and shapes of cigars which have not been
made in years and will probably never be made again. Styles
in cigars have changed since 1910 as they have in other products,
but a set of wooden models of each size and shape listed in the
Cartabon, which was made when this was drawn up, is still kept


by the Tampa industry. New sizes can be introduced in Car-
tabon, after a series of conferences between manufa t and
workers, but a new alse takes the rate of the next hih in-
stead of an intermediate rate. This usually means a trial
increase in the labor rate for the new size, and anufa
report many instances 'of having to refuse new order b se of
the inability of having the new size made at a rate whi would
allow them to compete with other producing areas. They lain
of the difficulty of introducing new sizes under the C on,
and state they are losing ground to competitors who can
styles to correspond with market changes at no additoi labor
cost. The present sales price of cigars is not a bsioe tor
in the Cartabon rates, nor is it even considered a-- .
The predominating factor is force of custom. This e in
the rate situation has greatly retarded the developia t the
Tampa cigar industry.

3 Lack of Modernisation in the Tampa Plants.
The Tampa cigar plants, with the exception of the taipa
Cigar Company, are not as efficient as they might be. is
partly the fault of the management, in not keeping a of
the times and installing economies, and partly the fault the
labor in the plants-in not being willing to change some the
old customs of the industry in favor of newer, better
The hand cigar plants of Tampa appear to be opera the
same maner as they were twenty, thirty or fifty years M. while
some additions have been ade to the equipment in some -the
plants, such as bunching machines, stripping machines o- -
phaning and banding machines, etc., the work in the pa
carried on in the same old way. The storage and ageing
the tobacco, its casing, blending, and stripping, have i -
gone little change. The method of distributing mteria the
workmen, collecting the cigars, inspecting them, and pi
and packing them, is almost identical with that used f yeaN
ago. A force of foremen, selectors, clerks, strippers,
packers, etc., is maintained according to a predetecd-
ule rather than the need for them. Years ago a ratio wa rked
out showing the number of these various workers that ea lant
must employ, according to its production of the diffe des
of cigars. That schedule is fixed and unchanging today.
need for the services of some of these workers seems to sec-
ondary. They are there by custom and by agreement bete manu-
facturers and workers, and they remain.
Some of the manufacturers do not want any changes i eir
plants or in the industry, and are partly to blame for t de-
cline of cigar manufacturing in Tampa. Other manufactu are
progressive and would like to change some of the old met ,
but they are confronted by a force of tradition so at t
they have been unable to make any headway against it, a
were (done in the cigar industry of Tampa in certain ways any
length of time they took on the status of customs, and o
given this classification, nothing short of a revolution d
change, them. To aggravate an unsatisfactory situation, of
these old customs have been ratified by agreement be -
facturers and workers..
The workers in the industry attach great importance the
way the work has been carried on in the past in the plan and
are quick to resent any innovation or change. They have
obstinate struggles to preserve the old methods, and ha c-
ceeded in incorporating some of them in agreements. In a
involving the simplification of processes in the plants that
a smaller number of workmen could do them, the workers ada-
mant. They would fight desperately rather than permit th lim-
ination of a few surplus workers in the plants.


4 Inadequate Ad rising by the Tampa Cigar Companies.
Some years ago Tampa-made Havana cigars did not need adver-
tising, They were known throughout the country by smokers of
fine cigars. They were constantly in demand, and every dealer
stocked them. Tampa manufacturers simply filled the orders with
quality cigars as they came in.
The situation has been different in recent years. Cigar
consumption has undergone a serious decline. Cigar companies
in otaer parts of the United States have entered the field and
the competition has grown intense. These other companies are
not depending upon tradition to sell their cigars, but have
energetic salesmen and effective advertising..
The present cigar smoker is not very muoh interested in
Tampa-made cigars, unless they are called to 6Is attention in
some effective way. Some of the older men still call for Tampa
cigars, but they are dying out. When they are all gone the
Tampa industry will die likewise, unless the Oew generation ok
smokers can be persuaded to smoke Tampa cigars.
Advertising is a big need of the Tampa cigar industry and
serious attention should be given it. The cigar manufacturers
of Tampa realize this, but in recent years they have not had
sufficient funds for much advertising. With their companies,
showing operating results very close to the line between a
gain and a loss, or actually suffering a loss, the funds have
not been available for such a purpose.
The manufacturers are hopeful of improving their operat-
ing condition by modernization of some of their processes. If
they succeed in doing this they should be able to set aside an
appropriation for effective advertising.

5 Union Control of Labor in the Tampa Cigar Plants.
The labor in the cigar plants of Tampa has been unionized
locally ever since the plants began to operate. The local un-
ions have had national affiliations, which at certain periods
have been closer than at others. They are member unions of the
International Cigarmakers' Union of America, Inc., which is a
part of the American Federation of Labor.
There are seven local unions, the division being on a craft
basis according to the type of work in the plants, with some con-
sideration being given to nationality. A board chosen from the
membership of the local unions handles the relations with the
manufacturers, the national union and the public.
The relations between the cigar unions and the manufactur-
ers of Tampa have not been very harmonious. they have been,
marked by distrust and a lack of frank dealing There has been
a sort of running quarrel between them ever since the beginning
of the industry. This has broken into the open on several oc-
casions. Bad strikes have occurred in the Tampa cigar industry
in 1900, 1910, and 1920. There'has been no serious strike in
recent years.
Several years ago the Tampa manufacturerO agreed to what
was virtually a closed shop for union labor is their plants, in
return for a promise from the national cigar fnion that there
would be order and harmony and cooperation from labor in the
plants. This condition did not materialize'as expected and the
manufacturers feel that they did not get that, to which they were
Recent negotiations between the parties have been charac-
terized by a somewhat better feeling. The willingness of the
unions to acknowledge in their.contract the right of the manu-
facturers to modernize their plants along lines followed success-
fully by their competitors is a very encouraging sign.
The attitude of the mass of workers in the Tampa Cigar
industry is puzzling. Some of them seem to hbve a blind faith


in their union, without knowing what the situation is o
is being done about it. Other are not interested in t
ion, and rather resent having to pay their union dues
month. The mas of the Tampa cigar workers know very 1
about the problems of the industry. It is felt that if
knew more about these problem, they would be willing t
the mamnfacturers solve thea.
6 Surplus Cigaw Worers in Tampa.
A problem, partly industrial and partly civic, con
the surplus mber of oigar workers in Tampa. For a
of years the Uanpa industry has been on the decline
furnished Jobs for fewer cigar workers each year he
number of unemployed would be even larger but for the p
twice of staggering work in the plants, or spreading the
among a larger number of workers than is necessary.
concerning the extent of unemployment in the Tampa ciga
plants are given in Part V.
Under present conditions fte Tampa cigar plants o
employ more workers. If they modernize their plants wi
the full cooperation of their labor and introduce effect
advertising and salesmenship, there is a good poslibili
an expanded production, with more Jobs. It is not belie
that the cigar plants can give employment to all the
cigar workers of Tampa for many years to come, even with
,prosperity in the industry.
This situation is partly a civic problem of the
community. The cigar companies have a responsibility f
the employment of as many as they reasonably can. The
civic authorities should give some attention to the
der. Suggestions that might help with this problem are
later in the Report. A complication that exists in the
action ia that mse of the older unemployed cigar workers
perhaps a majority, are not fitted by training, physique
temperament for poSitions in many other industries. A f
able aspect of the situation is that very few apprentice
are being trained in agarmaking most of the Latin
and girls going into other fields. This indicates that
problem should grow less serious as time goes oQ

7 Differential Beteen Labor Rates for Shade Mold and
vana Mold.
There are many thint n the Tampa cigar situation,
other than those mentio d, that need correction. All ol
these cannot be treated in this section, but several of
will be, mntioaed.
The labor rates paid by the T qm cigar industry f
making of cigars by the mold prooeee are in need of ad
ment. In this process, two types of tobacco may be used
the wraper, the Havana wrapper or tb dometic wrapper,
called as de" wrapper because it me grown under arti
cial sbluade, editions. The labor rate for the Havana mo
cigars tdsmaiderably higher than the rate for the shad
mold, whepO there is but little difference in the
of diffieuQ;At countered in making them. The low rate
shade mold wa fixed shortly after 1910 and was for the
pose of discouraging the use of the mold. It did not do
as manufacturers and workers both liked it on account of
increased proIp otivity over the hand process. Shade
turers had lower costs, and workers had higher earnings
it. The mold process has been satisfactory for the shade
manufactuierp but the sam advantages should be extended
the Havana mold manufacturers by lowering this different.
to a very small amount.



8 Increased Employment of Women in Tampa Cigar Plants.

The increased employment of women in the'cigar plants
of Tampa represents a problem, inasmuch as the average male
worker has a family to support, and the average female work-
er does not. Since 1950 the proportion of woken employed in
the cigar plants of Tampa has increased rapidly. Figures
showing this increase are given in Part V. Most of'the new
women-workers coming into the plants are employed in the ol-
garmaking process, rather than other occupations in the plant,
a few being put on cellophaning and banding Achines, wheh
these are installed. Most of the workers engaged in the oi-
garmaking process in both machine and hand pints in north-
ern cigar factories are women.
Frankly, the male cigar workers of Tampa are partly to
blame for this trend toward the increased employment of wo-
men in the Tampa hand plants. The manufacturers have found
it more difficult to get along with the male workers, col-
lectively and individually,than with the female workers, and
welcome the opportunity of increasing the number of the lat-
ter in their plants. The women in the cigar plants usually
learn quickly and make satisfied, satisfactory employees.
Another reason for the preference by the' manufacturers
for women workers is that they do not smoke in the plant, or
take home free cigars each day. This results in a consider-
able saving over a period of time.

9 Custom of Free Smokers.

One of the old customs in the cigar industry of Tampa
that is pleasant for the workers, but expensive for the em-
ployers is that of permitting the unrestricted smoking of
cigars (made with the plant's tobacco) by the male workers,
and in addition giving each male worker three free cigars
each day at the close of work.
This custom started in the early days of the cigar in-
dustry in Tampa, when conditions in the plants were very in-
formal, the workers coming in when they chose and leaving
when they chose, being regarded more as artists than factory
workers. The treating of the force to cigars each day by
the owner of the plant was somewhat similar to the host at
a civic or social function passing refreshments to the guests.
It was distinctly a social custom rather than a business cus-
In the prosperous days of the Tampa cigar industry, when
many businesses were loosely operated, competition was slight,
and profits and wages were high, the practice of free smokers
did not work a particular hardship on the industry. There
was plenty to go around, and treating the workers to the com-
pany's product did not worry anyone.
However, conditions have changed entirely in the cigar,
industry. Competition Is now very keen, and Improved methods
and efficiency have been put into the successful plants.
Cost accountants make careful cheeks of plants and point out
where a little can be saved here and there. Those plants not
stopping the leaks are falling behind in the competitive race.
It is a case of the survival of the most effitent. Under
such conditions if one group of plants has an expense the
other plants do not have this group vill be greatly handi-
capped. The northern cigar companies do not permit smoking
in their plants by the workers, nor do they .Lve away three
cigars daily to each male worker. Most of tfem sell one or
more boxes of cigars at factory cost to their workers once a
week. This is in keeping with the practice f; many American
industrial plants to sell a limited amount of their product
to their employees at cost. No instances are known of Amer-


ican plants which permit unrestricted consumption of th prod-
uct by the workers during working hours, and in additi give
them a stated amount of the product each day.
A computation showing the estimated coat of smoker the
Tampa cigar plants is given in Part VI.
10 Quality of Tobacco Used in the Tampa Cigar Plants.
The cigar workers of Tampa feel that the cigar an tur-
era have resorted to a cheaper grade of tobacco in rece year.,
which has handicapped them in their work.
The cost of the tobacco used in the Tampa plants f each
year back to 1980 is shown in Part VI of the report, in les
80, 81, 82 and 83, These figures show that the total c of
the tobacco without duties used in the Tanpa plants has lined
since 1930, most of this decline occurring prior to 19 the
cost of tobacco since that year being about constant. ng
this period there was a reduction in cigar output, and ft
in production to the cheaper grades of cigars, which she be
taken into consideration. -The percentage of total cost pro--
duction comprised by tobacco declined but slightly in t rod.
Less is being spent for tobacco now by the Tampa p as than
in the period prior to the depression, but about as nmu in
the years following 1932. The reduction in output and d to-
ward lower price cigars would account partly for this r tion
in tobacco cost. Advantageous purchases in the market, re to-
bacco is. sold like other staple raw commodities, have b made by
some of the companies in recent years.
Reports concerning the conditions surrounding the o ution
of Havana tobacco in Cuba indicate that it has deteriora some-
what in quality in recent years, as a result of inadequa scien-
tific fertilization of the soil and adverse weather cnon ons.
Another problem confronting the'manufacturers is th thod
of appraising the imported tobacco for the purpose of as sing
duties. In the bales the wrapper and filler tobacco are d to-
gether, it being left to the judgment of the customs ins tor to
determine how much of the tobacco is of the wrapper gra As im-
ported wrapper tobacco takes a higher-duty than filler t ceor
this appraisal may make a considerable difference in the Fn of
the duties and the total cost of the tobacco.
A drastic provision in the tariff regulations provi that
if as much as 35 per cent of the tobacco in a bale is ap ised
as wrapper tobacco, the whole bale is assessed at 100 pe ent
wrapper duty. The power of making the appraisal rests e rely
with the customs inspector.
This illogical method of appraisal of tobacco has r ited
in placing too much power in the hands of the customs i tors.
A slight change in their Judgment might require the pay of a
high wrapper duty on an entire bale of tobacco, instead a low
filler duty on the bulk of it. Many instances of excess ap-
praisals have occurred.
A discussion of the conditions surrounding the impo tion
of tobacco from Cuba is contained in Part V of this repo Tables
46 and 47, show the quantity of Cuban tobacco imported in the
United States and at Tampa, the total value and value pe und,
and the division of the tobacco into the classes of wrap and
These figures show the assessed value per pound of im-
ported tobacco to have declined since the pre-depression iod,
but to have been about the same from 1931-1938. The pe age
of assessed wrapper to the total has increased from 1 pe aent to
3 per cent since 1929, indicating that Tampa cigar compa are
having more of their imported tobacco classified as wrap and
paying higher duties accordingly.
In the production of low-price cigars, some Tampa actur-
ers have unquestionably resorted to a poorer grade of to co. The


strong competition from producers in other areas with locker la-
bor costs, and the unsatisfactory condition of their business,
have almost forced this practice.

11- Decline in Cigar Consumption.

Among the problems confronting the entire cigar industry of
the United States, including the Tampa branch is the decline in
cigar consumption. Figures showing this decline for the United
States are given in Part III and for the Tampa area in Part VI.
The reasons for the decline of cigar consumption in the
United States are taken up in detail in these respective parts of
the Report. They center largely around the increasing and effec-
tive competition of cigarettes and the present fast mode of living.
The decline of cigar'consumption is thus .a national problem,
and not one peculiar to the Tampa companies, but its effects are
very serious for the Tampa industry.

12 Trend Toward Smoking Cheaper Cigars.

Another major problem of the cigar industry is the trend to-
ward the smoking of cheaper cigars. Figures illustrating this
trend.are given in Parts III and VI.
This trend toward the consumption of lower-priced cigars has
raised serious problems for the Tampa hand cigar industry. The
plants of Tampa were started and developed for the production,of
quality cigars. They were equipped to produce high-price cigars
made with the finest Havana tobacco, and expert hand labor. There
was a good margin of profit on these cigars, and when the smokers
of the nation purchased them in large quantities, the Tampa com-
panies prospered.
When the market demand for quality cigars declined, the Tampa
plants were left with an antiquated system of hand manufacture, en-
tirely unsuited for the low-grade production into which they were
forced. They.have been striving to produce these low-price cigars
with their old methods, in competition with companies making them
byr machine, and have found the struggle difficult. Their margin
of profit on these cheap cigars is very low.
Whereas formerly the Tampa hand plants produced the bulk of
their output.in quality cigars, and considered cheap cigars as
merely a by-product, now the by-product has become almost their
major product. The shade tobacco plants are more fortunate in
this respect than the clear Havana plants.
The shift from high grades to medium grades has also consti-
tuted a problem for the Tampa producers, as in these grades they
are faced with competition from plants in other areas using a
semi-mechanical system. This has speeded up their production and
enabled them to get ahead of the Tampa plants, which are still
following the old methods installed in their plants for a high
quality product.

13 Competition From Machine Plants.
The Tampa cigar plants have faced increasingly strong compe-
tition from producers in other areas having loer costs of produc-
tion. Some of these plants are mechanized and turn out low-price
cigars at amazingly low costs. Tampa manufacturers are finding it
difficult to compete with their hand-made cigars against machine-
made cigars in the low-price range. Some of them have attempted
to solve the problem by getting machines for their bunching oper-
ations, and having the rolling done by hand. The cost by this
method is still higher than the automatic machine cost. It looks
as though the Tampa manufacturers will have to come to the auto-
matic machine for all 5 cent short filler cigars.


14 Competition From Plants Using the Competitive Syst
While the Tampa manufacturers have faced strong c ition
in their 5 cent cigars from machine plants, they have fl a
different kind of competition for their higher grade ci As
Tampa is inherently a production center for high grade a,
this competition is more serious than the other.
The competition ia from plants in other sections of e coun-
try, notably the New York-New Jersey-Pennsylvania area. this
area the progressive plants have improved on the old Sp hand
system by using a hand-propelled tool, called a Liebe Chine,
to help make the finished cigar. With. this Lieberman n some
plants use a mold, in which the bunch is pressed before
rolled, and some use a suction plate to facilitate the ing.
Another device frequently used with this method is a metal
object, called a thimble, which has a concave surface ed to
shape the head of the cigar. Various combinations of t aids
are used in conjunction with the Lieberman bunching mach .
The combination of the Lieberman bunching machine some
or all of the other devices has resulted in a decided i e m in
productivity. Workers using this system can make more c a than
with the mold system or the Spanish hand system. Altho the
wage rate is lower, this higher productivity enables th workers
to make larger earnings than with the other methods.
A group of Tampa manufacturers are desirous of putt ths
method, which is termed the "competitive system", into t plants,
with the same rate scales as are used in other producing as
They claim that with it they can lower their costs and a he same
time increase productivity so that the workers will earn e.
This has been done in the other centers, and they belie b can
do it.in Tampa. The workers disagree as to what is inol d in
the competitive system, and claim the manufacturers simp want
to use old devices and reduce wages. A greater fear of work-
ers is that the competitive system, by rdason'of its h pro-
ductivity, will reduce employment. The manufacturers a that
there would be fewer jobs for the same production, but o that
there would be more jobs in the long run, after the ben of
the higher productivity and lower costs were realized, work-
ers opposed the introduction of this system into Tampa a gor-
ously that no permanent use has been made of it.
Tampa cigar manufacturers feel that they cannot re in
business in this city much longer unless they are permit to
use this competitive system and reduce their costs to th
level as their competitors. They believe that with this tem
they can operate at a sufficient margin of profit to be e to
advertise adequately and improve their selling methods. a in
turn should lead to increased sales and prosperity for com-
panies, with more Jobs for workers when the results of system
begin to be realized. The workers object to the lower f the
wage rate and the reduction in employment that the int tion
of the system will entail. Where the competitive system sub-
stituted for hand-work there would be a reduction of 20- per ,r
cent in the number of workers engaged on the cigare aff d by
the process. The manufacturers claim that the system wo have
to be introduced gradually, as the workers need to be ed for
it. They believe that one or two years wouldd be necess to
complete its installation in the plants. This would mit te the
effect of the initial unemployment, and soon the decrees costs
should lead to increased sales, and the latter to expand pro-
duction and increased employment. When the competitive tea
was first being tried they offered to guarantee to the a
their average wages during the preceding year.
The workers state that they are not opposed to any sys-
tems which will help the industry and not injure their o inter-
ests. They have agreed to a clause in the new contract ch gives
the manufacturers the right to install new systems, upon written


notice to the unions, five days before so doing. The question of
wage rates to be paid under the new system will then be taken up,
and if not settled promptly, will be referred to the United State,
Department of Labor for adjudication. The labor leaders hope the
change to the new system will be made gradually, so as to dislo-
cate as few workers as possible, and that the business advantages
and production increase expected of it will be realized.
However, before the Tampa manufacturers can expect to get th
same productivity from the competitive system that the plants in
the northern area are getting, they will have to devote more'attei
tion to the preparation of their tobacco. This is done more care
fully and scientifically in the northern plants, and is in a betti
condition when it reaches the workers.
Manufacturers and workers alike will also havo to cooperate
in introducing efficiencies and economies in the Tampa plants if
these are to realize the full productivity of the competitive sys.
tem, and be able to compete successfully with companies using it.

15 Necessity for Stabilizing Conditions in the Tampa Plants.

The unstable conditions in the cigar plants in Tampa have
hurt the companies in several ways. Their salesmen have found soi
buyers reluctant to place orders for cigars in the Tampa plants
when labor troubles in them might delay or prevent the filling of
the orders. Then, buyers have hesitated to place orders for size
or shapes that were the subject of dispute between the manufacture
ers and workers. The companies have been unable to make plans fo:
selling cigars dependent upon certain processes, when their right
to use the processes might be challenged and taken away. Neither
could they plan an extended advertising campaign for cigars that
they might be unable to supply, when the time came for filling th,
Some manufacturers have desired to put in modern devices and
improvements, but the future of the cigar industry in Tampa has
appeared so uncertain that they have .hesitated to do so. It has
seemed to some that the inability to arrive at satisfactory work-
ing agreements with labor would fdrce them either to close their
plants, or to leave Tampa. Under such conditions plant owners art
not very likely to appropriate funds for new equipment.
Most of the cigar plants of Tampa have been unable to operate
successfully in recent years. This is due to a combination of th'
conditions mentioned in this section. Whatever its cause, the
fact stands out that they have not prospered. In 1938 the net
profit made by the nineteen Tampa hand plants was only 0.05 per
cent of their capitalization. The percentage of net profit to in.
vested capital of the Tampa plants has not exceeded 2.5 per cent
in the last six years. Very few industries in the United States
could operate very long with such a low rate of return. Also, the
majority of the plants are actually.losing money. In 1938 only
six plants out of the nineteen made any profits at all, the other
thirteen incurring losses. When two-thirds of the companies in
any industry are incurring deficits in their operations, something
is radically wrong with the industry. Complete figures showing
the results of operations of the Tampa plants are given in Part V:
These figures indicate the seriousness of the situation for
the hand cigar companies of Tampa. It is evident that conditions
must be changed if the factories are to continue in Tampa. The
management of the plants must be permitted and encouraged to
modernize them as completely as possible. They should likewise
devote their efforts to improved sales methods. Above all, the
cigar industry of Tampa needs stable relations and cooperation
betWeen its labor and capital.


Part II

In order to enable the reader of this Report to stand
the problems confronting the Tampa cigar industry and thl national
cigar industry, an explanation of the processes involved cigar
manufacturing will be given. Inasmuch as some of the ma press-
ing problems of the Industry are concerned with product process-
es, it is felt that a knowledge of these is essential to asp the
significance of the industry's problems. This explanati will be
made for the layman rather than in a technical manner.
1 Composition of a Cigar. I

According to an official classification of the Unlti States
Internal Revenue Bureau, a cigar is a finished tobacco p duct,
produced for the purpose of smoking and wrapped with a to acco
covering. If the covering is of paper or any substance p her than
tobacco, the product is classed as a cigarette.
The cigar is composed of two parts, the body and th) outer
covering. The body of the cigar is called the "bunch". e to-
bacco comprising the body of the cigar is known as "fill The
outer covering may be a single leaf called a "wrapper", it may
consist of an inside covering known as a "binder", with wrap-
per over this.
Cigars may be classified as of two types, as far ae ontruo-
tion is concerned, long filler and short filler. In the ng
filler cigars the filler consists of tobacco leaves or p of
leaves as long as the cigar. These are placed together paral-
lel strips of filler equal in length to the cigar,and rolled
to form the bunch. The short filler cigars are made of ken or
chopped up tobacco. These broken leaves may be from wra re or
from a lower grade of tobacco unsuitable for wrappers. broken
leaves used for filler are sometimes known as scrap.
Higher price cigars are usually long filler. Howev some
short filler cigars made by hand are superior to some ma e-made
long filler cigars. The tobacco required for long fille s usu-
ally more expensive than that for short filler. In chea: igars
the filler is usually composed of a low grade of scrap t cco,
frequently out up by a machine. Some short filler, made Havana
tobacco, makes a good cigar, and some short filler which a blend
of Havana and domestic tobacco, gives a satisfactory
Table 1 shows the percentage of the total cigar pr tion
of the United States that was made up of long filler and ort
filler in each year in the period, 1920-1938. Prom this ble, it
is seen that at the present time long filler compries 7 er cent
and short filler 50 per cent of the total. In 1920 long 1ler
made up almost nine-tenths of all cigars produced. Sino 920 it
has declined to seven-tenths, while the proportion of sh filler
has increased in this period from about one-tenth to t tenths'.
The improvement of short filler machines, resulting in a tter
cigar and lower cost of operation, has been a major fact in in-
fluencing this trend. -
In the manufacture of cigars three types of leaf a ended,
wrapper, binder and filler. When the cigars are made by e Span-
ish hand process only the wrapper and filler are require as a
binder is not used. Tobacco for wrappers must be of a tex-
ture than that used for binders and filler. It must pos s cer-
tain qualities of color and texture, and be suitable for form
and satisfactory burning. It must likewise blend well the
other tobacco, or be neutral in taste. Certain domestic papers
which have been developed with a neutral taste, make goo overings
for Havana filled cigars. The wrapper has much to do wi the



saleability of the cigar. Because of the exacting requirements f
wrapper tobacco, as well as a higher cost of production, it bring
a higher price than either filler or binder.
In the manufacture of cigars, tobacco imported from Cuba,
known as Havana tobacco, may be used for both the wrapper and the
filler. Cigars made entirely of Havana tobacco are known as "Cle
Havana" cigars. These command the highest prices in the market.
A practice that is followed by many cigar manufacturers is
to use Havana filler in their cigars, together with domestic wrap
per and binder. A type of tobacco grown in Connecticut satisfies
the requirements of a good wrapper as regards color, texture and
burning qualities, and is widely used for covering Havana filler.
Another type of tobacco grown in Wisconsin makes an excellent
binder, and is frequently used in conjunction with the Connecticu
wrapper and Havana filler. Because this domestic tobacco is grow
under artificial shade conditions, it is known as "shade" tobacco
and cigars made with it are designated as shade cigars, and the
producers as shade manufacturers. Another type of wrapper used b
some American cigar manufacturers is imported from Sumatra. Vari.
ous blends of Havana tobacco and different kinds of domestic to-
bacco are used for filler by many manufacturers. Tobacco from
Puerto Rico and the Philippines is used to some extent, the lat-
ter in low grade cigars.
It is not possible to judge the quality of a cigar by passing
it under one's nose and smelling it. Cigars should be tested in
regard to five qualities* burn, aroma, taste or flavor, color, an
If a cigar does not burn freely, regardless of its other qua
cities, it is not a good one. By burn is meant the degree of com-
bustibility. If the cigar holds its fire several minutes without
being puffed, and the tobacco is consumed evenly on all sides and
shows no thick, black ring of carbon where the leaf meets the ash
the burn is good. If cigars do not burn freely, they were prob-
ably rolled too tight, and if they burn on one side more rapidly
than the other, it is generally due to faulty construction, such
as being rolled unevenly.
The aroma and flavor of cigars should be pleasing to the
smoker. As tastes differ in this respect, no standard can be
The best color for a cigar is medium to dark brown. A green
or pale color may denote insufficient curing of the tobacco leaf
constituting the wrapper.
A good cigar is made smoothly and evenly, without lumps or
cracks. It should be firm or it will become spongy while being
smoked, but should not be too hard, or it will not draw freely.
Careful workmanship in laying the filler and putting.on the wrap-
per is necessary to secure the best results.
It is a misconception that dark-colored cigars are stronger
than light ones, as the color of the wrapper has very little af-
fect on the strength of the cigar. The filler comprises about
nine-tenths .of the cigar, so has a much greater effect on its
flavor. Improperly cured light colored wrappers may be stronger
than dark ones. A thick cigar is considerably stronger than a
thin one made with the same tobacco. Spots on tobacco are no in-
dication of its quality, as they might be caused by rain splashin
on the growing leaves, or occasionally by foreign elements in the
2 Preparation of Havana Tobacco in Cuba.

The sequence of steps involving the production of a clear
Havana cigar begins with the cultivation of the tobacco in Cuba.
Special districts in three Cuban provinces specialize in produc-
ing high grade tobacco leaf. These are: Partido district, in
La Habana Province; Vuelta Abajo district, in Pinar del Rio
Province; and Remedios district, in Santa Clara Province. Wrap-


per leaf from the Vuelta Abajo district represents the f t ob-
tainable. La Habana cultivates a slightly less desirabl t
lighter leaf. A third district on the boundary line bet La
Habana and Pinar del Rio is known as Smi-Vuelta and its ot
is particularly useful for binder tobacco requirements f cer-
tain processes of Havana cigars. Most of the filler use
clear Havana manfacturers ocmes from.Partido or Vuelta jo dis-
tricts. The Santa Clara province grows a type of filler oh is
most adaptable in Havana blenl cigars for which domestic Sumatra
wrappers are used.
The annual crop of Cuban tobacco begins with the a of
seed around September 1st. Several plantings are usual ide in
a bed of finely pulverized soil. Approximately one mon after,
the young tobacco plants reach a height of about six in and
require transplanting. The plants attain a average heil o
three and one-half feet at maturity. Wrapper tobacco is
under artificial shade provided by specially woven cloth slate.
Filler and binder leaves are usually sun grown. The lat types
are darker and heavier than wrapper. The tobacco plante.
September let is ready for cutting about January lat. harvest
in January consists in cutting and drying mature leaves. to-
bacco leaves are gathered, strung by passing a needle read
through the head of the stems and left to dry from two t
weeks. The rapidity of this drying process depends to a ge
extent on the weather conditions. After drying, the to o is
placed in piles to sweat the leaves.
The next step is the field selecting stage. The to oo is
transported 'o field packing houses where skilled select sort
and grade it, according to length and texture. Leaves sepa-
rated into "hands containing from forty to seventy leave de-
pending on the grade, about fifty being the average. The d
of tobacco are then packed in bales protected by burlap the
bark of palm trees, the heads being placed out and the I as in-
side for protection. In the baling, four of these hands put
together, forming what is known as a "carat." Eighty of se
carats make up a bale, which thus contains about 16,000 coo
leaves. A bale of tobacco weighs about eighty pounds. this
stage in the operations, about mid-June, the Tampa manu ore
or their agents make their purchases.
If the manufacturers operate warehouses in Havana, tobacco
which cannot be used immediately or within several months stored.
During this time it is subjected to sweating. This is oulalty
common in the case of wrapper tobacco as the removal of as must
await delivery to the Tampa factory. Wrapper tobacco is stem-
med in Cuba. A different procedure is followed for fille ch
is frequently carried through the stemming or stripping tion
in Cuba. The costs of stripping in Cuba are lower than the United
States, but as the import duties on stemmed tobacco are o r than
on unstemmed tobacco, this tends to offset possible sav from
Cuban stripping.
Stripping of the filler tobacco starts by wetting t obacoo
leaves and allowing them to stand in a moistened condition ver-
night. Using a hand operation, workers remove from the es the
lower part of the stem. The machine process is little us in
Cuba but is widely applied for stripping domestic filler the
United States. Havana filler is stripped by hand in T After
the stripping is completed, filler tobacco is deposited barrels
and stored for a period of time while it is allowed to The
length of this ageing period varies with the type and co ion of
the tobacco, ranging from several months to several years
Cuban tobacco is usually shipped via Peninsular and iden-
tal steamers from Havana to port Tampa,Plorida. United St a cus-
toms inspectors at Tampa examine the incoming bales, a the
tobacco as wrapper, filler or scrap and assess the duties Bach
of these classifications requires a different tariff duty The
problem involved in the appraisal of the imported tobacco s been


mentioned, and will be taken up later in Part V of the Report.

3 Sources of Domestic Tobacco Used in Florida Plants.
Most of the hand cigar plants of Tampa use Havana tobacco In
ported from Cuba. While the clear Havana cigars are made entire
of Havana tobacco, the shade manufacturers of Tampa use a wrapper
grown in the United States with a Havana filler. The machine
plants in Florida use domestic wrappers, wi1h domestic filler or,
for their better cigars, a filler made of domestic tobacco blend-
ed with Havana tobacco.
An effort was made to raise Havana tobacco in Florida in 189
when some seed was planted near Fort Meade. One good crop result
from this planting, but no more. It appeared that the first crop
took essential chemical elements from the soil, which could not b
The best type of domestic wrapper is grown in the Connecticu
valley. Havana seed is used in the production of this tobacco,
which is grown under shade conditions. These wrappers have an
attractive color and a very smooth and even texture, and make ex-
cellent cigar coverings. Their taste is neutral, so when filled
with Havana filler, the smoker gets the full effect of the Havana
tobacco. Some very high grade cigars are made with Connecticut
wrappers over Havana filler.
The shade plants of Tampa use Connecticut wrappers for their
cigars, in connection with Havana filler. The machine plants in
Florida likewise use Connecticut wrappers for the better grade of
cigars produced.
A type of wrapper is also grown in West Florida and South
Georgia under shade. This does not have the quality of the Con-
necticut wrapper,but is used on cheap cigars The machine plants
of Florida, in Jacksonville, Tampa, Quincy and other places, use
it to a great extent on their cigars below the 5 cent price range
In conjunction with the domestic wrappers, domestic binders
are used. The highest type of domestic binder comes from Wiscon-
sin. It is used by the Tampa shade producers and by the larg-
er machine plants in Florida. It makes an excellent combination
with a Connecticut wrapper and Havana filler for a good cigar.
Binder tobacco is also produced in Connecticut in consider-
able quantities but this is not as good as that produced ir Wis-
consin. A small quantity of binder tobacco is grown in Pennsyl-
vania and in middle western states, which is not equal in quality
to either the Wisconsin or the Connecticut binder. This is used
on low price cigars.
Most of the domestic filler tobacco is grown in Pennsylvania
The large northern machine plants use this extensively in their
operations. It results in a type of cigar quite different from
the Havana cigar, milder in taste, and appealing to some smokers,
but not to the Havana smokers. Domestic filler tobacco is grown
in Ohio and several other midwestern and middle Atlantic states.
It is likewise grown in the West Florida-South Georgia district.
Some of this last named filler is used in the Florida machine
plants, chiefly in Jacksonville and Quincy. Cigars made with
domestic filler are in the low price range, and do not compare
in quality with the Havana cigars.
Filler tobacco from Puerto Rico and the Philippines is used
by some American cigar plants. That from the.latter area is of a
lower grade than the domestic filler used. Cigar authorities hav
stated that the quality of American cigars is lowered by the use
of this type of filler. One of the larger Plorida machine plants
uses this for blending with domestic filler.
The complaint has been made by certain.northern cigar manu-
facturers that cigars made in the Philippines with the low grade
tobacco produced there and the cheap labor Of the Islands are
brought into the United States, duty-free, banded with American
cigar brands, and sold as American cigars. If this is true, this
unfair competition should be stopped.


In Table 8 the domestic production of tobacco used p-
per, binder, and filler in cigar plants throughout the c
is shown, together with its average price per pound.
Table 3 shows the production and value of wrapper a miller
tobacco grown in Florida in recent years.
From these tables it can be seen that in 1937 Flori ro-
duced 21 per oent of the domestic wrapper tobacco produce the
United States, having an average value of *.75 per pound, com-
pared with an average price of $.87 for all domestic wra to-
bacco. Likewise, that in this year Florida produced 17 cent
of the filler tobacco grown in the United States, with an erage
price of $.13 per pound, as compared with a national av e of
$.10 per pound for filler. Florida's wrapper tobacco tb as a
lower price than that produced in other parts of the c but
its filler tobacco commands a higher price.
4 Processing of Tobacco in the Tampa Plants.

When the imported Havana tobacco from Cuba arrives a,
it remains in sweating at the warehouses of the *epanies til it
is needed at the factories. Then the unatemne ftller is at to
the stripping department where it is stripped by hand. hand
stripping operation In the Tampa plants is done almost en ly by
women, and is the lowest paid operation in the plant.
About 27 per cent of the imported filler tobacco reo d in
the Tampa plants has been stripped In Cuba, so does not
this -operation in Tampa. The proportion of filler strlp in
Cuba has decreased in recent years in 1929 being as high 48
per cent.
After the stripping operation the filler is stored f cur-
ing. It is then blended in a.speaal department, or mixed th
tobacco from other plantations. fhis blending is for the se
of giving different tastes or flavors to cigars, Baoh ctur-
er has his individual formulae for the blending of cigars These
blends have usually been kept about the same for many ye occa-
sionally new blends being used. Besides blending Havana t eco,
mixed blends of Havana and domestic tobacco are also used
The method of blending the.tobacco in the Tampa plan is not
as scientific as that used in most northern plants. In t Tampa
plants the different kinds of tobacco which are to be ble are
weighed in correct proportions and then mixed together in ig
pile and shuffled and reshuffled by hand. When this oper on is
finished the pile as a whole contains the correct blend, there
is no certainty that the small quantity going into each c is
perfectly blended. Northern hand cigar paUnts give each -
maker a quantity of different kinda oi filler and let nia nd
it in exact proportions for each 1 at his bench. Ma plants
blend their filler in mixing IMa
The wrapper tobacco is allbWped in Tampa. When y to
be used it goes to the casing Sm, where workers called eri
loosen the leaves in the haad a prepare it for strippi It
is moistened in water, or wpayed lightly with water, and
allowed to stand a few hours or overnight, After this it ready
for stripping. In this operation the entire center stem i e-
moved, leaving the two halves which are to be seed as ra
for cigars.
In the northern plants the right and left hand leave e
separated into two piles which are given to different ope a.
By working with right hand or left haad wrappers exclusive the
rollers in these plants are able to roll faster than if th o
were not separated. In the Tmpa plants the right hand a eft
hand leaves are not customarily separated.
After the wrappers have been stripped, the wrapper 1 a go
to the selectors. These are workers skilled in types of t coo.
They grade the wrappers and determine the class of cigars which
they are to be used. In doing this attention is paid to t size


and shape of the leaves, the color, the pron1nence of the side
veins and other aspects of texture. Classification of the wrappe:
leaves is complex, since a factory making clear Havana cigars fre
quently has 50-100 sizes and shapes, each of which needs a special
kind of wrapper. Selectors are well paid, with some variation to:
their skill. There are four classes of selectors in a plant, the
first two working on high-price cigars, the third on medium-grade
and the fourth on low-grade cigars.
Miscellaneous factory workers assist in the operations con-
nected with the handling and preparation of the tobacco.

5 Classification of Cigarmaking. Processes,

In the sub-sections of Part II which follow, the different
processes used in cigarmaking will be explained briefly. A
classification of these is given at this point, after which they
will be taken up individually. This classification is given in
Table 4.
The classification shows the separation between the processed
used for the long filler and the short filler cigars, the former
being mostly hand methods, and the latter mostly machine methods.
Long filler manufacturing processes have gradually evolved from
'the old Spanish hand system, under which the cigars were made en-
tirely by one operator, to a highly efficient long filler machine,
which makes the entire cigar. Another hand method, which is fast-
er than the Spanish hand method, is with the use of a moldi With
this process the bunchmaker, or worker making the bunch, places
it in a mold to shape it, thus speeding up this process to the
point where two rollers, or workers putting 6n the wrappers, can
be kept busy. The subdivision of the hand mold into Havana and
shade refers to the respective wrappers used
The competitive system is the one used in northern hand oigal
plants, being so termed because the companies using it,are the
strongest competitors of the Tampa cigar industry, and by the use
of this very productive system, are consistently gaining ground oz
the Tampa industry. It is what might be called a semi-machine
process, in which the bunchmaker uses a Liebbrman hand-bunching
machine, or rubber apron which is hand operated and permits a
fast operation in the making of the bunches. Other devices, such
as molds, suction tables to assist the rollers by the use of air
suction, and thimbles, or small metal devices to shape the head ol
the cigar, may be used with it. This is the system some of the
Tampa manufacturers would like to install in their plants.
The Tampania drum mold system was invented by a Tampa manu-
facturer. It is similar to the competitive system in that the.
Lieberman hand-bunobaking machine is used, but provides for a
large revolving drum with molds In which the bunchmaker places the
bunches, and the rollers remove these as the drum revolves toward
The automatic machine for long filler cigars is operated by
four workers, and makes the complete cigar. It is not used in
Tampa or to any extent in the south.
Among the abort filler processes the hand mold is very simi-
lar to the long filler hand mold process. As a less productive
and hence more expensive process than the other two for making
short filler cigars, it tends to be used on a somewhat higher
grade of cigar than these.
The machine-bunched, hand-rolled process, used on short fill-
er cigars, is where the bunches are made entirely by a machine,
while the rolling is done entirely by hand.
The automatic short filler machine is operated by two worker
and has the lowest cost of any cigar manufacturing process. It is
widely used throughout the country on short tiller cigars, being
used by the machine companies in Florida.
For the purpose of administering the internal revenue tax on
cigars, the Bureau of Internal Revenue has divided them into five


classes, according to their selling prioe. These class e com-
monly referred to, in discussions of the industry. The asses,
with their selling prices, are as follows:
Class A 5 cents and less
Class B 5.1 esnts 8 cents
Class 8.1 oents 15 oents
Class D 15.1 cents 20 cents
Class B Over 20 cents

6 Spanish Hand Process of Cigasmaking
The oldest known method of making cigars is by the sh
hand process. This is a complete hand system, under all the
cigarmaking operations are performed by hand, and all one by
one worker. It is a handicraft process, somewhat simil o that
of the old hand spinners and weavers, maWn years ago. e in-
teresting, it has been superseded in productivity for a years
by newer proeoeses involving the use of mechanical devi and by
machines. It is used much more extensively in Tampa th n any
other olgarnking center.
The famous clear Havana centers at Key West and were
started with the Spanish hand method of making cigars, to the
limited productivity of workers under this process, its lication
has bean restricted largely to high grade cigars. With process
the only tool needed by a cigarmaker are & special board
and a curved knife. In the traditional Spanish hand p no
binder is used, only the filler and wrapper.
In the factory, cigarmakers are seated.at tables which
rests their work board. They are given supplies of fill binder
and wrapper tobacco. In the northern cigar plants, all rial
issued to workers is checked carefully. In the Tampa p the
wrappers and-binders are counted when issued, but no ch is
made of the filler. It would be contrary to an old cus to weigh
the filler in the Tampa plants, and as such would be rea ad by
the workers. Much waste of filler is reported. A gauge pro-
vided to permit measurement of the thickness of the ciga and a
rule for measuring its length. As an initial operation, work-
er first trims the wrapper to the right sine. He then f the
bunch, taking filler leaves in his hand and placing the eas one
by one in parallel fashion so that a draft for smoke is i ted.
The cigarmaker versed in the Spanish hand mePtod views h work as
an art and is proud of his ability to Judge the arrange of
filler by "the feel of the hand." Bach leaf is so place at the
tip of the leaf is always.to the burn of the cigar and t side
veins upward and toward the left. After arranging the b the
cigarmaker rolls the cigar, starting at the lighting end "tuck,"
and finishing at the end which goes into the mouth, which a termed
the "head" of the cigar. In completing the head, the wr r is
pasted with a little gum tragaoanth, a tasteless gluey s tance
which is obtained from Asia.
As each oigarmaker completes 50 cigars, he ties th in a
bundle and places his number thereon. The number provide the
basis for tabulating the cigarmaker's wages under a piece rk sys-
tem. At the end of each working day the cigars are coll ed by
employees who come around with hand trucks on which their
trays. The cigars are piled on these, rolled to the ele r, and
taken down to the inspection room, where the foreman a them
the next morning. In the northern cigar plants the wor bring
their finished cigars to a table in the working room twi day,
and the foreman inspects them as they are brought in. saves
the expense of collecting the cigars, and likewise permit effects
in workmanship to be pointed out to oigarmakers immediate
In the Tampa plants the foreman is prohibited by cu from
making but one inspection trip each day through the plan this


being made about noon. He may thus be unable to correct the de-
fective work of any cigarmaker until a day and a half has elapsed
after the cigars were made. On his inspection trip through the
cigarmaking room, the foreman must also be careful not to pick up
many cigars for examination from any particular worker, or this
would be resented.
Picking and packing teamwork is the next step. Under, the
Spanish system still generally used in Tampa, workers serve in
pairs,one picker and one packer composing a team. For this work
the men are equipped with broad tables and good lighting facil-
ities. The picker is skilled in picking out 50-100 different
colors of Havana tobacco. As 50 cigars of a uniform color are
sorted in a pile by the picker, his teammate, the packer, takes
charge and properly arranges the cigars in a box. The box se-
lected for the packing must contain the proper "front mark" such
as perfectto, panatelaa", "corona", "queen"i etc. This front
mark identifies the particular size and shape contained.
The picking and packing by the Spanish system involves a
great amount of work, on account of sorting the cigars into many
different piles. It can be seen that sorting into 50-100 piles
and then packing each pile separately requires much time. In
northern plants of all types and in Florida machine plants, the
packing is done by the American system. This requires only one
worker instead of two. This individual first divides the cigars
into six piles, according to shade, and then packs them, making a
further separation according to color, as he,packs the cigars.
The American system of packing is far more economical than the
Spanish method. Under the latter system the picker receives
$1.10 and the packer $1.10 per M cigars, above the B class, mak-
ing the combined cost $2.20. As contrasted with this cost, the
rate for picking and packing the same quality: cigars by the Amer-
ican system, called grading the cigars, is $.60'- $.90;
After the packing operation the packed box of cigars goes to
a table where bands are put on each cigar. This necessitates
taking the cigars from the box, but they are repacked by the
banders exactly as they were found, In this same operation each
cigar is placed in a cellophane wrapper. Theo box of cigars is now
ready for the affixing of cancelled revenue stamps as required by
the Bureau of Internal Revenue.
Machines to put..on the bands and cellophane are in use in
practically all of the northern cigar plants,?and are likewise
used in the Florida machine cigar plants, and some of the hand
plants in Tampa. Some plants also have machines for putting rev-
enue stamps on the boxes.* There is a great saving through the
use of machines instead of hand labor for these operations. The
banding, cellophaning and stamping operations- are usually done by
After the packing operations are finally-completed, the boxes
of cigars are placed in a storeroom which is usually humidified,
to keep them fresh. They remain in this storeroom until shipped.
The northern cigar .companies pay more attention to proper air-
conditioning of the rooms in which their cigars are stored than
is done in Tampa, as the climate of this city makes air-condition-
ing unnecessary.

7 Hand Mold Process of Oigarmaking.

The hand mold process of cigarmaking originated in an effort
to improve on the productivity of the Spanish'hand system. Molds
first came into use in the fourth quarter of the last century, but
their use was not widespread until after 1910. They were used
then in Tampa to a considerable extent and pzrved popular, the
manufacturers liking the lower cost of production which they per-
mitted, and the workers their higher earningsiwith them.
In the mold process the cigarmakers work in teams of three,


one bunchmaker and two rollers. The bunohmaker keeps the. o roll-
ers supplied with bunches and they put on the wrappers. bunch-
maker places a special binder leaf around the filler, to the
bunch, binders being necessary with molds. Then, as ea unh is
finished, he inserts it into a mold. This device consist of two
wooden blocks in which cigar shaped receptacles have bee arved.
The molds are of two sizes, some holding ten cigars and e twen-
ty. After the bunches have been placed in the molds, if n
molds, they are allowed to set a certain length of time. closed
molds, a top is placed over them and pressure applied in sold
press. After a period of ten-twenty minutes the top is en off
the mold and the bunches are ready for the rollers, whoas sk it
is to put the wrapper on and finish the cigar. Rollers the
Tampa plants are frequently experienced with the Spanish d pro-
cess and perform the operation in the same manner, only ter,
as they have but one operation to do instead of several, can
attain a greater speed than with the Spanish method. Th unh-
maker also has a greater speed because of the specialisal of
his work. Ther mold process is a good example of increase produc-
tivity due to division of labor.
In the northern factories, hand-made long filler ci s are
made mostly by mold. In the Tampa plants, the mold i-s to a
fairly large extent on long filler cigars, while all sho filler
hand-made cigars are made with it.
Havana and shade mold differ in that the former has Havana
wrapper, and the latter a domestic wrapper. In the Tam igar in-
dustry there is a rate problem involving these two, dat back to
1910. The mold was coming into use in Tampa about that and
thinking it would detract from the hand process, efforts mae
to discourage its use. These took the form of placing a, rate
on the labor used in making shade mold cigars the only made
at that time by mold. Molds soon became popur and we ed
with Havana tobacco. The rate for Havana mold was fixed only
$1.00 less than Spanish hand, which was much higher than de
mold. The variation in these rates may be seen from the allowing
Retail Price Havana de
of Cg a Size Mold Rate Size M ate
4 VFx 39 80 4 77x 42
2/25s 4 3/4 x 42 2.00 4 3/4 x 43 .00
3/50 5 1/4 x 40 34,00 5 1/4 x 41 .00
This differential is entirely too high, and should lowered,
in fairness to Havana mold producers. Suggestions for t are
contained in Part-VII of the Report. It might be mention that
Havana mold producers likewise have to pay an import dut their
wrappers, to which the shade mold producers are not subj

8 Competitive Process of Cigarmaking.

The competitive system of cigar manufacture is c d on
frequently in this Report because of its importance to t ture
of the Tampa industry. As explained, this consists of t rk
by a bunchmaker and two rollers working together as a te of
three, with the aid of a Lieberman hand-bunching machine pos-
sibly several other mechanical aids. The bunchmaker make e
bunches with the hand-bunching machine, which is a simple ch-
rollidg device made of rubber.. First, the binder is pla in
this and then the filler. The handle of the machine is p eand
the binder is quickly rolled around the filler, forming bunch.
Molds, either open oi closed, may be used with the syst If this
is desired. A suction table to aid the rollers may like k be
used, if desired. A suction table has a perforated metal ate
for the rolling, underneath which is air suction to assia the op-
erator. Small metal devices, with concave ends, called tables,
are used in some plants to shape and anooth the head of t cigars.


There is no uniformity among the plants in the northern area
with regard to the use of these devices to assist the Lieberman
hand-bunching machine. Molds are used in some plants and not in
others, suction tables are used by some plants and not by others,
and thimbles likewise. It depends on whether the workers have
been trained to use these devices, in which case their use would
increase productivity, If they are unfamiliar with them, their
productivity is usually higher without them and the plant does
not use them. In one New Jersey plant, some workers in the plant
use molds, others do not. In another New Jersey plant the cigar-
makers on one side of the working room use suction tables, while
those on the other side do not. Experienced olgarmakers state that
they are hindered rather than helped by the suction tables.
Tampa cigar manufacturers are interested in the competitive
system, and would like to use it in their plants. It permits a
lower production cost for the manufacturer and higher earnings for
the workers, than under the hand or mold systems.
Along with the competitive system the Tiapania process will
be described, as it is very similar. In this process, the Lieber-
man hand-bunching machine is used, in connection with suction
tables, if desired. However, in place of regular molds, there is
provided a large revolving drum, fitted with.mold receptacles,
which turns in a groove laterally across the working table. The
buncbmaker sits on one side of the table and the rollers on the
other. As the bunchmaker finishes his bunches he places them in
the mold receptacles on the drum wheel, which slowly turns as
these are filled. The rollers on the other side take them out as
needed. As there are fifty receptacles in the drum wheel for
bunches and these revolve in a complete revolution before reach-
ing the rollers, they are pressed in the process. A small knife
on the drum cuts off the tuck, or lighting end of each cigar as
it revolves. The Tampania process was invented by a Tampa manu-
facturer and is still in the experimental stage.
The cost of installing the competitive sstem is about $25
per table for each team of three workers. The cost of putting in
the Tampania system is about $75 per table.

9 Bunching-Machine, Hand-Rolling Method.
This is a process which uses a machine for performing one
operation in cigarmaking, and has the other done by hand. It is
used only on short filler cigars, of a cheap grade. This bunch-
ing machine is a power machine which makes the completed bunch,
being operated by one worker.
For the operation the short filler is put into a hopper on
top of the machine by a worker in the plant, who keeps a group of
machines supplied with filler. From this position it is fed or
forced, in small quantities sufficient for a cigar, into a depres-
sion in a canvas belt, used to put on the binder. A binder is sup-
plied by the operator of the machine for each bunch of filler, as
it reaches a certain position.. The machine wraps the binder
around the filler in a rolling motion and the bunch is made. No
labor is required in the operation of the machine except to feed
filler tobacco into the hoppers, and place the binders.
When completed the bunches are placed in closed molds and
pressed for about twenty minutes, after which they are given to
hand-rollers who put on the wrappers. One bUnching machine will
supply bunches for eight to ten rollers, and keep them busy.
This process is used in a considerable Dumber of Tampa plants
for low grade short filler cigars. Its chief appeal is its econon
of operation, Which is greater than any of the hand or semi-machir
methods. However,it is not as economical as the automatic machine
The bunching-machine used in this process may be the same as
is used with a rolling machine to form a complete automatic machir
making the entire cigar. Some plants first used bunching-machines
with hand-rollers, then installed rolling machines to go with the
and make the entire cigar automatically.


10 Automatic Machines.
Short filler automatic machines for making the entire igar
were introduced in 1912 and long filler machines in 1917. or a
number of years both were in the experimental stage, but
improved to a high degree of efficiency. By the early 19 s
they were being used successfully. In 1919 2.5 per cent. the
cigar production of the United States was made by machi By
1925 this had increased to 15 per cent. In 1929 55 per c of
the cigar production was machine made, and by 1958, over per
cent of all the cigars manufactured in the United States e
made on machines.
Table. 5 shows the machine and hand production of the ffer-
ent classes of cigars. It is seen .that 87 per cent of CI A
cigars are manufactured by machine and 60 per cent of Cla B
cigars. Class C has 65 per cent of its production still e by
hand, while the hand method is used entirely for Classes d E
cigars. These figures show how far the cigar industry one
toward mechanization in the two decades since machines we first
The long filler machines have tended to be used mot in
northern plants, and the short filler machines by son lants.
ne short filler machine ia used in Tampa and elaewhe
i rida it will be described first.
The short filler machine is really two Maabines oa dthe
bunching machine that has just been described, and an au tic
rolling machine placed next to it, and used in conjuncti ith
it. When the bunch is completed by the bunching half of
machine, instead of being taken out and placed in a mold,t is
left in the machine and carried forward to the rolling s on
to be wrapped. On the way the head is shaped and the tuk immed
off. The operator of this machine .places a wrapper on ap-
per die for each cigar, where it is held down by suction cut
to the desired form. It is then carried forward to the per
device, here the bunch is revolving through fluted roll
Paste is applied to the end of the wrapper, after which a
rolled around the revolving bunch, in a spiral motion, s ing
from the tuck end. After being wrapped, the cigar is sha
the head rounded and the tuck cut off at the proper leng all
by machine operations. It is then deposited on the insp on
The short filler machine is operated by two workers must
work together with close cooperation. The speed of the e
can be regulated to the speed of the operators. One me c is
required to service fifteen short filler machines, and e t long
filler machines, where a large number of them are used. an
eight-hour day the short filler machine can turn out 56 0
cigars, the average output being about 4200.
The labor coat of making a 5 cent cigar on a short ler ma-
chine is much less than by any other method, being $1.70 M,
as compared with $7.56 by the machine-bunched, hand-roll roceas,
and $9.50 by hand.
The long filler automatic machine is more complicate than the
short filler machine, requiring four operators. The fire these
feeds the long filler on to an endless belt, trimming it the de-
sired length. The quantity of filler necessary for each ar is
then measured in the machine, and the desired quantity a ted
from the rest and shaped as.to general size, head and tu The
filler, in the shape of a cigar, goes forward to receive bind-
er. The second operator places the binder leaf on the b r die,
where it is cut to the correct shape, and then carried o the
belt. The end of the binder is dipped in paste and roll round
the filler to form the bunch. This is further shaped by ling
before going to the wrapper. The third operator cuts th appear
to the right shape on the wrapper die in the same manner the
binder was cut. The wrapper carrier then takes it to tb apping


device, where it receives a supply of paste and is rolled around
the bunch. The cigar is again smoothed by rolling, cut at the tuck
end, and deposited on the inspection table. The fourth operator
examines all cigars, placing them ni racks for the packers. This
operator likewise patches imperfect cigars.
Operators on both short filler and long filler machines have
been mostly women since machines were first put into use. Hand
pigar workers as a rule have not been employed as cigar machine op-
erators. This has resulted in the displacement of a number of old
cigarmakers, and the employment of new workers, This situation is
discussed later in the Report.
Mechanization of the cigar industry has affected the number
and size of factories producing cigars. Before the introduction
of machines, a large proportion of cigar production was in small
*factories, while at the present time over half of the total pro-
duction is made in large factories. In 1920 there were 11,585
cigar plants in the United States, while in 198 there were 4,157.
Mechanization of the cigar industry has also influenced the
trend toward the consumption of low price cigars, and in turn has
been influenced by it. By lowering production costs to a very low
level, it has made available to the consumers of the country a
large supply of low-price cigars, equal in quality to higher priced
cigars of former periods. In turn the increasing demand of conaum-
ers for these low-price cigars has resulted in an expansion of the
operations of the machine companies.

11 Comparative Costs of Different Processes.
Some comparative figures will be cited to show the relation
of the costs of the various processes.
Iower labor costs on the short filler machine have been
mostly responsible for the increase in the production of short
filler, as the labor costs for short filler are 25 per cent less
than for long filler and 64 per cent less than the hand process.
Some figures taken from a study made by the United States
Bureau of Labor Statistics are given to show the labor require-
ments of the different systems in man-hours, in cigar factories
throughout the country. Table 6 shows the comparative amounts
of labor required per M for 5 cent cigars, by the hand process
and four-operator machine for the long filler cigars and the ma-
chine-bunched and two-operator machine for the short filler cigars.
This includes all the labor used in the plant, such as leaf prepa-
ration, stripping, cigarmaking, packing, cellophaning and banding,
box labeling and miscellaneous labor.
It is seen from this table that while the hand process re-
quires a total of 35.58 man-hours, the four-operator machine re-
quires only 15.96 man-hours on long filler cigars. The labor re-
quired for long filler machine production is thus 47.8 per cent
of that required for long filler production by hand. For the
short filler cigars the labor required by the two-operator machine
is only 43.1 per cent of that required by the machine-bunched,
hand-rolled method.
Comparing the four types of operations, It is seen that the
hand process is the most expensive. The machine-bunched,hand-rolle
method requires only 85.4 per cent as much labor as the hand pro-
cess, the four-operator machine only 47.8 per cent as much, and
the two-operator machine only 35.9 per cent as much.
Using the average wage rate paid hand cigar workers in the
United States, $.35 per hour, it is seen that the labor cost of th
hahd process is #5.55 more per M than the machine-bunched, hand-
rolled process, $15.64 more per M than the long filler machine cos
and $19.61 more per M than the short filler machine cost. These
differences in labor costs represent substantial items in the tota
cost of manufacturing cigars.
The productivity of the bunching machine is about 4,000 ci-
gars in an eight-hour day, of the short filler automatic machine


about 4,200, and the long filler machine about 4,200.
In addition to labor, the operation of the machines als
other expenses, such as amortization, power and light, re rs,
oil and grease, and maintenance costs. The annual operate costs
of these for the bunching machine and the short filler ne
are given in Table 7. This shows that the annual operate cost
of a bunching machine, exclusive of labor, is $300, and annual
cost of a short filler machine, exclusive of labor, is $7
The annual operating costs of a long filler machine not
obtainable, but the operating costs per M cigars are sho n Ta-
ble 8. The total machine costs of operating a long fille chine
on 5 cent cigars amount to $2.56 per M.
A detailed statement showing comparative costs of ctur-
ing a 5 cent cigar by the machine process, combination ma e and
hand process, (machine-bunched, hand-rolled), and hand pr s is
shown in Table 9.
These figures were prepared by the United States Dep nt
of Commerce, and are taken from a report on the cigar ind
They include plants throughout the country. In this stat t
costs are separated into materials, labor, miscellaneous over-
head. It is seen that the machine plants have the highest oat
for materials, this amounting to $16.89 per M, as compare bth
$15.86 for the combination machine and hand plants and $1 for
the hand plants. The cost of tobacco is higher in the ma e
plants than the others, indicating that a better grade of acco
is used in their operations. Boxes, labels, and cellopha cost
more in the hand and combination plants.
The hand plants have a much higher labor cost than t others',
this being almost three times as great as the labor cost f the ma-
chine plants, and about 50 per cent greater than the lab oat
in the combination plants. The labor cost per. in the h plants
is $11.66, as compared with $7.50 in the combination plan and
$4.18 in the machine plants.
The cost for stripping is higher in the machine plan than
in the others, while the selectors cost more in the hand ts.
The packing costs $ .50 in the machine plants, as contras with
$ .77 in the combination plants, and $1.10 in the hand pi a.
Other employees engaged in preparing the tobacco cost the hine
plants $1.13 per M. The biggest items of labor cost for hand
and combination plants are for bunchmaking and rolling, cost,
$8.61 for the hand plnts and $5.54 for the combination p ts.
The miscellaneous and overhead costs run a little hi in
the machine and combination plants than in the hand factor
on.account of the expenses of operating the machines. Th cost
is $4.62 for the machine plants, $4.00 for the combination ants,
and $5.00 for the hand plants. The machine plants have ow-
eat total costs per M, 25.68, the combination plants the t,
$27.56, and the hand plants the highest costs, $29.66.
A careful inspection of the foregoing tables will ma clear
the respective cost advantages of the different types of ine
At the present time automatic cigarmaking machines not
sold, but are leased. The installation charge for a long ller
machine is $4,500, for a complete short filler machine $2 and
for a bunching machine, $1,500. In addition to this their re-
quired an annual rental of $750 for both long filler and t
filler machines, or, a royalty based on production, of $1. per
M cigars produced. If a company uses the niachines regular the
annual rental basis is the most economical type of contra If
the use is not regular, the royalty per M cigars manufactu is
the best arrangement. I ,
There are in Florida 417 short filler machinesiax, gfill-
er machines, and 177 bunching machines. The i'cation pf t e is
shown fn Table 10. It is seen that the largest number of lt
filler machines is in Jacksonville, and the next largest Tampa.
The large machine plants of the Swisher Company in Jackso le


and the Havatampa Company in Tampa operate most'of these machines.
Almost all of the bunching machines are in Tampa, scattered through
the hand plants, with some used by the Havatamp0 Company. The loig
filler machine has never been used to any great extent in Florida.
The foregoing has dealt with the comparative costs of the dif-
ferent types of machine operation as compared with hand operation
in cigar plants throughout the United States. .
Inasmuch as the Tampa cigar industry is essentially a hand in-
dustry it will be of interest to compare the respective costs of
the various hand processes.
Data concerning the productivity per hour,pper 8-hour day, and
per 40-hour week under the Spanish hand method, the hand mold meth-
od, and the machine-bunched, hand-rolled methodihave been gathered
from the Tampa plants and appear in Part VI of this report. Table
102 in Part VI, shows these figures. Data concerning the produc-
tivity with the use of the competitive method oS cigar manufactur-
ing were gathered in the course of a field trip through northern
plants in New Jersey, New York and Pennsylvania. While several
Tampa plants are experimenting with the competitive method, their
operations are not complete enough to be fully representativee of
its productivity. The plants in the northern alea have used it on
a large scale for some time.
Table 101 in Part VI, shows the actual productivity of cigar-
makers in Tampa during a 12-month period. However, as most of
these weeks did not include a full 40 hours, a iore exact basis of
comparison can be obtained from the figures in Table 102, which .
was compiled on the basis of exact hours, 8-hour days, and 40-hour
weeks. Because of incomplete plant records, it was impossible to
get these data for all of the plants, but the oges Included repre-
sent the best-operated plants in Tampa, and posasbly have the high-
est productivity by the present hand methods.
These findings show that, using the Spanish hand method, eadh
Tampa cigarmaker in 1938-1939 produced 13.35 cigars per hour, 106.8
in an 8-hour day, and 534 in a 40-hour week, Uder the hand-mold
method each worker produced 20.44 per hour, 1653. in an 8-hour day,
and 817.6 in a 40-hour week. Using the machine-bunched, hand-
rolled method, 42.58 cigars were produced per hdpr by each worker,
340.6 in an 8-hour day, and 1,703.2 in a 40-hour week. '
According to the investigation of the northern cigar compa-
nies,the productivity in plants using the competitive method of
cigarmaking ranges from 250-350 cigars per cigariaker per 8-hour
day. There were instances of still higher prod tivity in some
of the plants. Productivity under the system vaqies with the type
of cigar and the condition of the tobacco. If this average of
250-350 cigars per day is compared with the Tampa average of 306.8
for the Spanish hand method, and 163,5 for the hind mold method,
it can be seen that the competitive system is much more productive
than the hand methods used at present in Tampa. It is understood
that the present productivity of the workers is niuh lower than it
would be under conditions of full employment and capacity operations
of the plants. Taking a low average for the productivity of the
competitive system as 250 cigars per day, it is teen that this sys-
tem is 234 per cent as productive as the Spanish hand method, and
153 per cent as productive as the hand mold metfd. The machine-
bunched, hand-rolled process is used only with wort-filler cigars,
so is not compared with' the competitive system, ihlch is used on
medium and high-grade long-filler cigars.
Average wage rates-for oigarmakers under th1 competitive sys-
tem are somewhat difficult to present, as these states vary between
the various plants. Believing that it would be better to show rates
actually used,' Tdble 11 has been prepared, listing these. In this
table te.1 oWi medium, and high rates for each soup of plants in
the northern area are shown.
'These rates are lower than the rates in effect in Tampa. How-
ever, the productivity is so much greater that the manufacturers
have a lower cost of production, and the cigarmaCers earn more than


with the higher rate and. lower productivity of the other me-
thods. An illustration showing the production of a 10 cen igar
by each of the methods will make this clear. This is cont ed
in Table 12. In this table the per worker productivity
ings under each method are shown. The earnings of the ker
and rollers using the hand mold and likewise the competiti me-
thods are assumed to be equal.
Productivity of dglarmmkers by the Spanish hand, and
mold methods 1s based On a low and a high scale the firs f
these on actual production records of the Tampa plants, p an
allowance for the Spanish hand workers in consideration of e 10
cent cigar, and for the competitive system the lowest p ivity
in plants using this system in New Jersey, New York and P 71-
vania. For the high productivity scale, figures wch re ant
the operation of the different methods under the most ad ous
conditions are used.
According to these illustrations, the labor cost per igars
for a 10 cent sise is $19.00 by the Spanish hand method, $ 95 by
the hand mold method (which represents an average between $18.00
for the Havana sold and $16.50 for the shade mold), and $ 5 by
the competitive system.. The use of the competitive system
thus result in a labor saving to the manufacturers of 27.6 cent
over the Spanish hand method, and 20.3 per cent over the mold
By multiplying the average cigars produced under the feent
systems by the wage rate of each, the total earnings under oh sys-
tem are shown. Under low productivity conditions, the Sp hand
worker would earn a weekly wage of 12.35, the hand mold r
$14.25, and the worker under the competitive system $17.19
By using the competitivee system, the cigarmakers oul
39.2 per cent more than under the Spanish hand method, and .8 per
cent more than under the hand mold method.
Under high productivity conditions, the Spanish hand ker
would earn a weekly wage of $16.65, the hand mold worker $ 41,
and the worker using the competitive system, $24.06.
This shows that, under the most favorable conditions, g
makers using the competitive system earn 44.7 per cent mo han
Spanish hand workers, and 24 per cent more than hand mold
This illustration indicates that the competitive sys of ci-
gar manufacturing has a labor cost differential ranging 203.
per cent-27.6 per cent over the Spanish hand and hand mold thods.
It also indicates that the oigarmakers using the oap tive
system have weekly earnings from 20.8 per cent-44.7 per a great-
er than under the Spanish hand and the hand mold methods.
The competitive system is easily adaptable to the hi grades
of cigars, and the earnings of thas igarmakers on these ex their
earnings on the medium grades. However, as has been point out be-
fore, more attention is given in these.northern plants to pre-
paration of the tobacco, this being in a condition more u ble for
working than in the Tampa plants. The high productivity o igar-
makers using the competitive process in the northern area due
partly to the excellent condition of the tobacco supplied .
Weekly wages earned by cigarmakere using the competit pro-
cess in modern factories in New Jersey, New York and Penns an
range from $16,00 $22.00 an average being around $18.00 t
the present time. These plants were restricting their out to
some extent when these figures were taken.
The respective costs of performing several plant ope one
other than oigarmaking by machine and by hand will be ve
The cost of stripping by machine is about one-third 1 than
the cost of hand-stripping. In the Tampa plants rates of 1 cents
per hand on binders and 23 cents on wrappers are paid for dipping
by hand, while the machine cost is 153 cents for both type f
leaves. The saving in the stripping of filler by machine I ]most
as great. Stripping by hand requires 3.5 times as much la as
by machine, but the latter method involves capital and mai ce
charges for the machines. As has been mentioned,filler is ipped
entirely by hand in the Tampa plants. Earnings of worked n


stripping machines are higher than those of hand strippers. An
operator in one Tampa plant earned $12.50 stripping by hand, and
subsequently, $23.00 by machine.
The cost of cellophaning by hand in Tampa is 50 cents per XM
while the cost of banding by hand is 60 cents per M. As compared
with this combined cost of 11.10 for both operations by hand, the
rate per M for cellophaning and banding on one machine is 36 cents
per M. The cellophaning and banding machines have a productivity
of about 28,000 cigars per day. The workers on these machines
have a productivity eight times that of the had process. The
operators of these machiness earn from $17.00 22.00 weekly.
A machine is used in some of the larger plants for affixing
the internal revenue stamps on the packed boxes of cigars. This
stamping machine has a capacity of about 32,000 per day. Workers
on this machine have a productivity of four times that of the
hand method.
There is a machine used in some plants for punching the holes
in the cigar heads, punching 5 cigars at a time. Where this is
done by hand it.costs 20 cents per M.
Tnese machines have resulted in considerable savings to the
In some of the most efficient plants in the northern area the
minimum wage paid is $12.50 per week, received by the janitor.
These northern plants have a substantial freight differen-
tial over the Tampa plants, marketing most of their production in
the northern area.

12 Processes Used in the Tampa Cigar Industry.

In its early development, the cigar industry of Tampa was
strictly a Spanish hand industry. After 1910 molds began to come
into prominence in the industry. As these were successful and
were an improvement in productivity over the Spanish hand system,
their use increased until now they are used by all the Tampa com-
panies. According to the findings of this survey, the mold method
of cigarmaking is 159 per cent as productive as the Spanish hand
process, in the Tampa plants. This would seem to indicate that the
mold method of making cigars has a promising future in the Tampa
Most of the Tampa plants have likewise adopted the bunching
machine for use with hand rolling for their Class A short filler
cigars. The machine-bunching, hand-rolling process is 308 per
cent as productive as the Spanish hand method, and 193.7 per cent
as productive as the mold system in the Tampa plants. It would
appear practical to use this system on short filler cigars rather
than the Spanish hand or mold methods.
In recent years some Tampa plants have also installed short
filler automatic machines for their Class A cigars. These have
worked very satisfactorily. The.cost-advantage with these ma-
chines is much greater than with any of the other processes. Com-
parative data from the records of the Tampa plaass show that the
productivity of the short filler machine is 15.9 times as great
as the Spanish hand process, 10 times that of the mold method,
and 5.2 times as productive as the machine-bunched, hand-rolled
It would seem advisable for Tampa cigar manufacturers to in-
vestigate the possibility of using short filler machines for their
Class A production.
It need not be inferred that the Tampa industry must go en-
tirely to a machine basis. Those manufacturers who study produc-
tion costs carefully will probably use machines:for their Class A
cigars. Contrary to a general belief in Tampa, the nineteen hand
plants of that city are not producing the bulk of their cigars in
the "A" classification at the present time. Data from their rev-
enue books indicates that in 1938 they produced 43.8 per cent


Class A, 5.7 per cent Class B, 41.1 per cent Class C, 9.2 cent
of Class D, and .1 per cent Class B. Over half of their uo-
tion is still in the higher grades.
Tampa is a high grade shade tobacco center, as well a
clear Havana center. Assumng that machines were adopted r Class
A production, there would still be about half of the out of the
plants left to be made by other processes.
It does not seem likely or advisable that long fille chines
will be brought into Tampa to make long -filler cigars ab the
Class A grade* These machines have been successful in t rth
on low price cigars, but they have not been particularly cessful
with the higher grades. In the opinion of certain expert the
present long.filler machines are not suitable for the hi grades.
Perhaps they may be perfected some day so as to produce t satis-
factorily, but now their product is not equal to the grade
hand-made cigars.
Another factor to be considered is that Havana wra p do not
lend themselves to machine production as readily as the d stie
wrappers* Por this reason the clear Havana cigars would diffi-
cult to make on machines. It is not believed that the T indus-
try will resort to machines for its clear Havana product but
it is thought that Tampa will continue to be primarily a lity
cigar production center, with most of its output in clear vana
However, other manufacturing centers making high cigars
have gotten ahead of Tampa in production methods. The h not
gone to machines, but have developed a process of anac
that is still essentially a hand process, but is rch mo -
tive than the old processes. Under this process, they c oduce
a very high grade cigar, fully equal to Tampa's cigars, a ch
less cost than the Tampa manufacturers, because of the hi r pro-
It might solve the problem of the Tampa industry as as
mechanization is concerned, if it would adopt this produce hand
system for its higher grade cigars. As no mechanical po is used
with this method, the Tampa industry would still be pr ma a
hand industry, making quality cigars by a hand process. the
same time it would be able to compete successfully with i chief
competitors, the progressive northern plants. The system erred
to is the competitive system, which has been described.



Part III


1 Summary of the Problems of the National Cigar Industry.

The problems of the cigar industry of the United States will
be summed up briefly in this sub-section of Pait III. Statisti-
cal data illustrating the movements in the industry will be given
in the rest of the section.
The chief problem of the cigar industry is the declining con-
sumption of cigars throughout the country. In 1920 there were
8,097,000,000 cigars consumed in the United States, while in 1938
this number had declined to 5,153,000,000. This represents a de-
cline of 36.4 per cent. Sales of cigars are now only 65.6 per
cent of those in 1920. Such a reduction in the market demand for
the product of any industry would seriously handicap it.
Various reasons have been given for this decline in cigar
consumption. Some of the chief ones are related to the increasing
consumption of cigarettes. Prior to the World War the temperance
forces of the nation campaigned against the use of cigarettes as
well as liquor. Whether this influenced smokErj is not known, but
cigarette consumption was very low in that period. During the
World War and thereafter, nothing was said against cigarettes, in
fact millions of them were sent over to the boyb in the trenches.
Cigarette smoking was quickly popularized among the men of the
nation, young and old alike. Not only did men universally smoke
cigarettes following this period, but women took up the habit.
Large quantities of cigarettes were demanded annually by women.
It became fashionable for both sexes to smoke tOgether at all
social gatherings. Some women actually objected to men in the
group smoking cigars, as it was more convenient for everyone to
smoke cigarettes. Moving pictures featured their stars smoking
cigarettes. Fashionable gatherings had a predominance of cigar-
ette smoking.
The cigarette companies were not slow to capitalize on the
situation, and inaugurated national advertising campaigns that pro-
duced prompt and satisfactory results. The advertising was partly
industry-wide in scope, appealing to persons to smoke cigarettes,
without naming individual brands. Effective appeals for specific
cigarettes were made in newspapers and magazines, by signboards
and other outdoor media, and over the radio. Usually the adver-'
tising was centered around the pictures of beautiful girls, famous
athletes, and celebrated members of society. It was very effective
resulting in large, sales increases.
Concerted advertising by different companies in an industry
has been much easier in the case of the cigarette industry thaf the
cigar industry, as the leading companies in the former are very
much larger than in the latter, with plenty of means for sustained
The cigar industry has been negligent in advertising, which
has reacted strongly against it. No concerted effort has ever been
made to induce people to smoke cigars. Individual advertising by
the companies has been limited and not very effective. The sales
methods of many of the cigar companies in the industry are like-
wise in need of improvement. The merchandising of cigars is done
carelessly, some dealers and merchants not keeping cigars in good
condition but letting them dry out.
Unethical advertising.by one cigar company hurt the industry.
This was the famous "anti-spit" campaign, in which one manufacturer
advertised that his cigars were machine-made, and therefore not
made by putting spit on the head of the cigar.
The faster mode of living affected cigar consumption, in that
persons learned to prefer quick smokes, such as were given by cigar-
ettes, to the more leisurely cigar smoking. After the World War


a restless spirit pervaded the nation, and people were ou d
doing things, rather than sitting quietly at home. The a mobile
symbolized this era. Cigar smoking is not very convenient en
getting in and out of cars, and making stops here and the A
cigarette that could be listed and thrown away in a few te
was considered more practical. Then, people have become
nervous than formerly, and believe cigarettes quiet their res.
Many smokers have preferred cigarettes because they are eco-
nomical than cigars. All cigars appear expensive in coa son
with cigarettes, especially those above the 5 cent price .
Not only has total cigar consumption declined, but trend
has been toward the smoking of cheaper cigars. In 1920, per
cent of all cigars consumed in the United States were Cla A, or
those selling for 5 cents and less. In 1958 88.8 per cen all
cigars consumed were Class A. This trend toward the low ce
cigars has worked a great hardship on companies making p 1-
pally quality cigars.
The trend toward mechanization in the cigar industry rais-
ed problems of unemployment, as the machines displaced wo a.
This has been particularly severe when hand plants were c letely
Labor troubles have persisted in the cigar industry, lefly
in the unionized hand plants. The disputes have usually ered
around wage rates. There have been some serious labor si tons
in the cigar industry in New York City and Tampa and Key t,
Florida, at different times.
Other problems exist in the national cigar industry, will
be seen from an inspection of the statistical data present in
this section.

2 Development of the Cigar Industry in the United State
Small Scale Shops.

During the period 1800 to 1860 little factual data i vall-
able concerning the production and consumptidh of cigars. e only
useful index is found in the imports of cigars and leaf t coo.
Up to 1860 moit of the imports of tobacco leaf and of bet ci-
gars came from Cuba, while increasing quantities of chea cigars
were imported from Germany and Belgium. After the Civil tar-
iff duties on imports of cigars rose faster than those on to-
bacco opening the way for the growth of a domestic cigar ustry.
The earliest commercial supply of home manufactured ars
came from small owner-operated craft shops. The only re cents
for establishing a craft shop were a few inexpensive tool om-
bined with skill acquired through several years' apprenti ip.
Cigar products were usually sold in a local market, perha in
front of the shop. In the earliest period of the Americ igar
industry, the small craft shop was the predominant source pro-
In the latter part of the last century retail tobacco stores
for the sale of cigars, smoking tobacco, chewing tobacco, rff,
etc., were widely distributed throughout the country. Th were
usually dbsigated by the figure of an Indian, placed in nt of
the store. these cigar-store Indians lasted until the Wo War
period, when they were placed in museums as fond relies o era
which had passed.
The merchandising of cigars in the United States has en tak-
en over largely by stores other than cigar stores, Where a large
part of the total cigar sales were formerly made by cigar ores,
this portion is now very small. In 1929 there were 35,2 igar
stores in the United.States, while in 1955 this number ha declined
to 15,350. In 1929 cigar stores made salesof $410,065, le in
1935 these sales had dropped to $182,950.1l)
1. Census of Business, Retail Distribution, Volume IV, 5, United
States Census Bureau, Washington.


Mechanical Improvements in the Hand Procer.
The introduction in the cigar industry of the mold in 1869
made profitable the use of teamwork since it e*anoed the output
per worker. Owners of the larger shops sought to introduce the
teamwork system. As has been explained, this npthod consisted of
three cigarmakers working together as a team, ope making the
bunches and shaping them with molds, and the others putting on the
Since the use of molds was considered an infringement on the
skill of hand cigarmakers, strikes of uni6nized, cigarmakers were
precipitated in certain shops where this introduction was attempt-
ed. Samuel Gompers, then a youthful cigarmaker in a New York shop,
participated in one of these mold strikes when he Joined the work-
ers of his shop in protest. Just prior to his death, Gompers ad-
dressed the 1923 convention of the International Cigarmakers' Union
at Chicago. In the speech which was entitled "Accept the Machine,
Organize the Workers, he recalled his early experience in the mold
strike and made the following observation:
"I am free to say that from that time there camb some light to
my mind, and I realized for the first time that it was absolutely
futile for workmen to protest against or to go on strike against
the in-troduction of a machine, a new device or a new tool.1t"

Another mechanical aid which encouraged the spread of team-
work was the suction wrapping device introduced in 1885. This de-
vice is now generally identified as the suction table.
Neither of these technical innovations competed with the hand-
icraft process as machinery later did. Both enhanced the output
per worker and thereby strengthened the hand system. Introduction
of these improvements was checked but not prevented by the opposi-
tion of cigarmakers who sought to protect their training in appren-
ticeship and acquired skill.

Cigar Machinery.

Since 1900 cheap cigars have been made to a large extent by
short filler bunching machines. As has been explained in Part II
this machine makes the bunches, which then have the wrappers put
on by hand rollers. If a rolling unit is added to the bunching
machine, the short filler cigar can be made completely by auto-
matic machinery requiring only two operators.
The power bunching machine was introduced in 1886 by Borg-
feldt of Metuchen, New Jersey. In 1902 an improved bunching ma-
chine was introduced by Universal Machinery Company of Newark,
New Jersey. In 1912 a rolling unit was added to the bunching ma-
chine by the Cigar Machine Company of Baltimore, Maryland.
At present two major types of short filler cigar machines
are on the market, manufactured by the Arenco Machine Company and
the International Cigar Machine Company. The former concern re-
cently sotd its patent rights for a new model bunching and rolling
unit to the International Cigar Machine Company1 but continues to
sell bunching machines# The Arenco Oompany is a subsidiary of a
Swedish manufacturing company and imports all of its products from
Sweden. The International Company is a subsidiary of the American
Machine and Foundry Company established by the American Cigar Com-
pany in 1900.
Experimentation over a long period at a cost of 7,000,000
dollars was necessary for the introduction in 1917 of a long fill-
er cigar machine. The American Machine and Foundry Company and
the International Cigar Machine Company introduced this four-opera-
tor machine which offered the first serious competition to hand
workers making long filler cigars.

1. Cigarmaker's Official Journal, October 15, 1925.


A description of the operation of these machines has en
given in Part II of this Report.
Table 13 shows the distribution of short filler and
filler machines in the principal cigar producing states. a
table emphasizes the mall use of long filler machines in oda
as compared with northern cigar states. Pennsylvania and
Jersey have more than 2000 long filler machines in operate a
compared with six in Florida. lach of these four-operato
chines is capable of making over 4000 cigars per elght-h ay.
The successful development of cigar machinery has me that
each manufacturer of cigars by machinery might have to in a
large original sum in equipment which was formerly unnece r. Al-
though cost of production is raised in the aggregate, it lowered
per unit of product provided the machines can. be kept bu

Adjustment to Wages and Hours Legislation.

Table 14 shows average hourly returns in plants manf ring
cigars, for cigar hand workers as compared with machine o tors.
The minimum wage rate required for labor on products d in
interstate commerce is set at 25 cents per hour with an ase
to 30 cents scheduled for October, 1939. The Fair Labor dards
Act of 1938, commonly known as the Wages and Hours Law, ca for
continuation of the 30 cent rate for the period from 1939 1945,
after which the minimma rate per hour rises to 40 cents, hand-
workers in some of the plants are barely earning the min wage
at the time of the making of this survey, it is essential at the
plants speed up their labor productivity, presumably with hines.
The effect of the Wages and Hours Law is toward mechanics and
fewer but larger factories. This law has already caused clos-
ing of a number of small machine cigar plants in Pennsylva manu-
facturing 2 for 5 cent cigars with low wage scales.

The Consolidation Movement Prior to 1917.

While the hand process remained the chief method of p ucing
cigars, the most efficient size of cigar factories was no ly the
small to medium type.
From 1890 to 1900, the American Tobacco Company was t-
standing example of a large company in this field, exhibit a
phenomenal growth in this period. It was successful in at ing
substantial control of tobacco products in every branch of nu-
facturing except the production of large cigars.
In 1901 the American Tobacco Company invaded the lar igar
industry, effecting a series of consolidations with the ob t of
control. Its subsidiary, the American Cigar Company, ino rated
in January, 1901, increased its control over large cigar p action
from 4.8 per cent in 1901 to 16.4 per cent in 1903. Prom t time
until dissolution of the trust in 1911, the control over t large
cigar industry never exceeded 15 per cent. It is clear t the
attempt of the trust to control the cigar industry was not y suc-
cessful. According to one authority, this attempt failed use
"monopoly principles andconditions did not prevail," at time
in the cigar industry.J'r Later, as conditions changed, t ppor-
tunity for large- scale control developed.

Consolidation After 1917.

After the cigar machine was introduced for the manufa e of
large, long filler cigars there was a movement towards tne
rapid use of large-scale methods. The economies involved d
permit and encourage consolidation, being very favorable t
large-scale operations.

1, Economic Developent of the Cigar Industry. Baer, W. ,
1933. Art Prnting Company, Lancaster, Pa.


Table 15 shows that since 1917 the number of firms engaged
in cigar manufacturing has declined by nearly two-thirds. Where-
as 13,528 cigar manufacturers were operating when the long filler
cigar machines were introduced in 1917, the number of manufacturers
in 1938 had declined to 4,157. Part of this reduction was due to
failures but there are many instances of consolidations of firms.
In some cases consolidations resulted from the obvious advantages
of large-scale operations, while in others they occurred because
of financial stress arising from poor management, a declining mar-
ket and other factors.
The years since 1921 have witnessed a marked trend from pro-
duction in many small and medium size factories, organized by
relatively maall managerial departments, to larger units.
Table 16 shows this trend, presenting data at intervals of
several years. It is significant that 60 per cent of production
in 1937 came from factories producing over 40,000,000 annually.
This compares with 15.7 per cent of the total output from this
same class in 1921. While a continuous growth took place in the
factories producing in excess of 40,000,000 annually during the
period 1921-1937, a consistent.reduction occurred in those making
less than 40,000,000 annually. Obviously very large establish-
ments were gaining at the expense of the small concerns.
Although 9 companies control most of the output for each
group of tobacco products except large cigars, little headway has
been made in controlling cigar output.
The firms producing most of the volume of Cigars are those
specializing in cigars alone. Possibly the potentialities in the
manufacture of cigars by machine and semi-machine methods are not
being realized because some firms wish to push the sale of cigar-

International Cigarmakers' Union.

The development and present status of the International Cigar-
makers Union will be treated briefly.
The beginning of this organization was in 1864 in New York
City. Like many other American craft unions its administrative
set-up was characterized by decentralization. As soon as its or-
ganization had grown sufficiently, it set up high standards of
membership and. a system of benefits based on high dues. The union's
policy in the period of its growth may be summarized as follows:

(a) Establishment of a uniform rule which set three years'
apprenticeship as preliminary to membership eligibility.
(b) A uniform minimum wage of $7.00 per th sand.
(c) A program for an eight-hour working day.
(d) Requirement that union labels be used for all products
selling above $20 per thousand.
(e) Refusal to permit members to work in non-union shops.

A step which strengthened the Cigarmakers' Union was the in-
stallation of a system of death, sickness, unemployment and
traveling (loan) benefits. This virtually added a plan of insur-
ance protection which was derived from the periodic dues just as
strike benefits.
In recent years the policy of the International Cigarmakers'
Union has become less extensive in its scope. Union labels have.
passed into disuse thile the eight-hour working day has been in-
corporated as the general standard throughout American industry.
Of the former broad system of benefits only strike benefits remain
from the reduced dues. An apprenticeship rule is of small impor-
tance when practically no young men are interested in becoming
hand cigarmakprs. Minimum wages furnishing added protection to
the worker have become a legislated fact in the Wages and Hours
During the past several decades the Cigarmakers' Union has
faced declining membership. There was a growth in union membership


to 1910. After this peak year, members were gradually r oed as
the teamwork system was more widely adopted and the spre of ma-
chinery began. Its membership has declined from 35,699 1 1920 to
about 15,000 in 1959.
Part of this decline may be charged to the reduction demand
for high grade, hand-made cigars. HEwever, much of the e rests
on the opposition of union workers to the introduction o machinery
and mechanical aids and the slowness of admitting machine rkers.
Such leaders as George W. Perkins and Samuel Gompers saw e need
for organizing all cigarmakers if the organization was t main
effective. Both realized that the organization of work must
keep step with the evolutionary progress towards central tion
and specialization. Both pointed out in speeches during e early
1920's that the cigar industry was gradually evolving men
hand workers and mold workers to increased employment of mn on
bunch making and automatic machinery. Their request for e or-
ganization and admission of these machine workers went ded.
At present, the membership is largely concentrated in the
plants of Florida with the threat of continued decline sta 1 immi-
3 Production and Consumption of Cigars in the United S es.
The remainder of this section will consist largely an
analysis of statistical tables showing trends and tondit in
the national cigar industry. A close inspection of the able
should result in the understanding of some of the major bems
of the industry. In this sub-section figures pertaining cigar
production and consumption trends will be presented.
Table 17 shows the production of cigars in the Unite States
from 1863-1938, by large and small classes. The class off all
cigars is not very important, and is seldom referred to statis-
tical comparisons.
It can be seen from this table that the cigar indust in the
United States has been a declining industry since 1920, afar as
the total output and consumption of cigars is concerned. e cigar
industry was prosperous for fifty years prior to 1920. It as a
thriving industry during the latter part of the last cent in
1870 producing over 1,000,000,000 cigars, in 1880 over 2, 000,000,
in 1890 over 4,000,000,000,and in 1900 over 5,000,000,0 he
production in 1900 was greater than it is at the present e. In
1910 there were produced about 7,000,000,000 cigars, whil. the
peak of production was reached in 1920, with a total prod$ tion of
8,000,000,000 cigars. During the 1920's the cigar output?' ld up
fairly well, although it was somewhat less than at the beg ing
of the decade. In the depression production dropped to a w fig-
ure in 1933, with 4,300,000,000 from which point it climb to
5,153,000,000 in 1938.
Tables 18 and 19 show the trend of cigar consumption' the
United States by revenue classes from; 1920-1938. These h4 been
explained as being based on price ranges. The significant changes
in the type of cigars produced can be seen from these table The
cigar industry of the United States has shifted to a low ce prod-
uct. In 1920 only 24 per cent of the totalproduction c listed
of Class A cigars, while in 1938, Class A cigars made up .8 per
cent of the total. Class B cigars, which accounted for a st one-
third of the total production in 1920, now have a negligi pro-
duction. A very serious decline has taken place in media rice
cigars, or Class C, which made up 42.8 per cent of the to in 1920
and only 9.4 per cent in 1938. The two higher classes ha never
represented more than a very small part of the national t 1, but
these show declines, that of Class B being particular p.
These tables constitute a vivid illustration of the shift the
American cigar industry to a lower-priced product.
In Table 20 the seasonality of cigar output can be The
months of high production are October, November, SeptembeI and


August, while the slack production months are December, January,
and February. This seasonality of production has varied somewhat
during this period, tending to be more concentrated in the busy
months. The peak of cigar sales is in the middle and late fall,
in anticipation of the brisk Christmas market. The lack of storage
equipment in most plants helps account for the pronounced seasonal
variations, as cigars must be kept under humidified conditions to
maintain their quality. Instability of seasonal production could
be remedied to some extent by the installation of humidor storage
Facilities, but the high cost of this is a deterrent in many plants.
The Tampa cigar plants do not have this problem,, as the temperature
and humidity are suitable for cigar production and storage without
artificial conditioning.
Tables 21, 22, and 23 show the distribution of the national
cigar production and its changing trends in the leading producing
states. The first of these tables gives the number of cigar manu-
facturing companies by states, the next the production of the eight
leading cigar manufacturing states, and the third the percentage of
total production of each state. The first of these tables shows
the reduction in the number of cigar manufacturing firms, and the
size of these, which have been commented on. From this table the
changes in the number of companies in individual states can be ob-
It is seen from these tables that New York has the largest
number of companies, 1,010, but Pennsylvania produces the greatest
number of cigars, 37.4 per cent of the total. Florida has 197
companies, but produces 16 per cent of the total production. In
1920 Florida produced but 4.4 per cent of the national total. The
production of the large machine plants of the Swisher and Hava-
tampa Companies have been largely responsible for this increase.
Of the other states, Pennsylvania has been the leading pro-
ducer since the beginning of the industry, accounting for 29.5 per
cent of the total production in 1924. Most of the largest machine
plants in the industry are located in Philadelphia, such as the
Bayuk, Congress, Consolidated, and General Cigar Companies. Sub-
stantial increases were made in this period by New Jersey and
South Carolina. New Jersey has mostly hand plants, with some of
them, like the American Cigar Company's plants at Trenton, making
very high quality cigars. A machine plant constructed a few years
ago in Charleston, South Carolina, accounts for the increase in
the total of this state.
The heaviest decline in cigar production took place in New
York, whose proportion of total production dropped from 14 per
cent to 4.5 per cent. Troubles with organized labor in New York
have resulted in the removal of many plants to New Jersey, Penn-
sylvania and Florida. Other states showing a decline in total
production include Ohio, Virginia, Michigan, and Indiana.
In 1920, the leading cigar producing states were Pennsyl-
vania, New York, New Jersey, .Ohio, Virginia, Michigan, and Flor-
ida. In 1937, 65 per cent of the total national production was in
Pennsylvania, Florida and New Jersey. This indicates a concentra-
tion of cigar production in certain regions of the United States.
These tables likewise show the production of small cigars by
states. In Virginia the production of maall cigars has increased
from 47,129,000 in 1920 to 156,195,000 in 1937, this state being,
the leading producer. Florida has shown an increase in recent
years to 16,080,000. The production of small cigars has declined'
greatly in other states, in New Jersey dropping from 80,601,000 in
1920 to 4,799,000 in 1937,and in New York declining from 60,387,000
to 4,448,000 in this period. A smaller quantity is produced in
South Carolina, Ohio, and Pennsylvania.
Table 24 lists the average retail price for cigars sold in the
United States each year from 1920-1958. This proves conclusively
that cigar consumption in the United States has shifted to cheaper
cigars. According to these figures the average retail price of
cigars in 1920 was 11 cents, compared with 4.6 cents in 1938. This


is a reduction in average sales price of 68.2 per cent. Th price
reduction has been a great blow to the hand plants making lity
4 Foreign Trade and Consumption of Tobacco Products.
Imports of cigars into the United States, including ents
from non-contiguous territories, have in recent years cons ed
chiefly of large shipments of very cheap cigars from the ip-
pines. It is reported that these cheap cigars are banded an
established American brand, and sold as American cigars. to
the World War period imports of high-grade cigars from Cu re
important. These continued to be imported in fairly large ti-
ties during the 1920's, but in recent years have dwindled a
very small total. Puerto Rico has shipped a quantity of c s to
this country for a long period, but in the last few years ee
shipments have declined sharply. Imports of cigars from o
countries are negligible. Very few cigarettes are import to
the United States. Figures showing cigar imports and shi ts
into the United States are contained in Table 25.
There are very few cigars exported from the United St ,
but substantial shipments of cigarettes. The export total
shown in Table 26. It might be interesting to Floridians ow
that one of the large machine cigar companies in the state, e
Swisher Company, is developing a substantial trade in fore
markets. There might be a good opportunity for the cigar i story
to recoup some of its losses by increased foreign business.
Cigar manufacturers desirous of developing a foreign et
for their product might be interested in Tables 27 and 28. e
first of these shows the estimated annual consumption of c a
and cigarettes in twenty European countries, from 1920-195 It
is seen that the consumption of both cigars and cigarettes
increased appreciably in this period, cigars by 21.3 per c
and cigarettes by 70.1 per cent. This would seem to be an
couraging indication of possible markets for cigars.
The second of these tables shows the per capital con a on
of cigars and cigarettes in each of eighteen European coun s,
compared with that in the United States. It is seen that
Netherlands, Denmark, and Germany have the highest per capi
cigar consumption, each of these exceeding the United State The
United Kingdom is the greatest cigarette-smoking nation in pe.
5 Comparison of the Cigar Industry With the Cigarette ry.
It has been stated that the chief source of competition or
the cigar industry is the cigarette industry. So much em a
has been given to this situation, that a clear understand f
the exact relationship between the two industries is needed
secure an intelligent comprehension of it. Some figures co rn-
ing the two industries may be enlightening.
Table 29 shows a comparison of the per capital consumpt of
cigars and cigarettes in the United States from 1900-1938.
1900 the per capital consumption of cigars was 70.5, while 938
it had declined to 39.5, a decline of 44 per cent. In 1900 e
per capital consumption of cigarettes was 34.9, while in 19 t
had increased to 1,312.5, an increase of 3,660 per cent. C
consumption was twice as great as cigarette consumption in
while in 1938 thirty-three times as many cigarettes were co .
This comparison might be qualified by taking into cons a-
tion the fact that a cigar is larger than a cigarette and a
greater sales price. The average selling price of a cigar 4.6
cents, as compared with a little less than 1 cent for a ci tte,
so the price of the cigar is about five times as great. A
this allowance is made, the contrast in consumption trends
very striking.



Cigars reached their peak in per capital consumption in the
United States in 1907, and since that year have been steadily de-
clining. The highest per capital consumption for cigarettes was in
the most recent year, 1938. As per capital cigarette consumption
has increased in every year since 1900, with the exception of 1901,
1920, and the depression years, this might indicate that it is still
going upward and has not reached its peak. Even the depression did
not check cigarette consumption very much. These comparisons show
that the cigar industry has been going through a very unsatisfac-
tory period for many years, while the cigarette industry has en-
joyed a remarkable expansion.
It might be pointed out that because an industry is not
prospering, it does not necessarily follow that every company
in the industry is operating under unfavorable conditions. There
are some modern and efficient cigar companies which are being
operated very efficiently and with satisfactory results. These
are successful individually, but for the industry as a whole
their success is offset by the poorly-managed, inefficient plants.
Table 50 shows the comparative value of the products of the
cigar and cigarette industries in the United States. In 1909 the
value of cigars marketed was $214,000,000, or 5.2 times that of
cigarettes, which was $41,000,000. In that year cigars made up
51 per cent of the value of all tobacco products, while cigarettes
comprised 10 per cent. There was a considerable.amount of smok-
ing tobacco, chewing tobacco, and snuff produced at that time.
In 1937, the value of cigars produced had declined to 169,000,000,
while cigarettes had increased to $968,000,000, or 5.7 times
as much. In 1937, cigarettes accounted for 76 per cent of total
tobacco products and cigars only 13 per cent. In 1937 cigars had
declined to one-fourth of their 1909 proportion of total tobacco
products, while cigarettes had increased their proportion about
seven and one-half times. The actual increase in the value of
cigarettes produced during this period was 2,595 per cent, while
cigar production was declining 30.7 per cent.
The number of wage-earners in each of the industries compris-
ing the tobacco products group is shown for each year from
1919-1937 in Table 51. An interesting thing shown by these
figures is that there are still over twice as many employees in
the cigar plants, despite the disparity in volume and value of
production. The reason for this is that the cigarette plants
use large machines for making their products, and have mechanized
equipment for other operations in their plants, so require a
comparatively small labor force in proportion to.their output.
Even in. the mechanized cigar plants, a larger number of employees
are required for.the same volume of output than in the cigarette
plants. As the cigar industry contains a large number of hand
plants, and semi-machine plants, the total workers employed are
considerably in excess of the requirements of the cigarette
Table 32 shows the average number of hours Worked weekly
in the tobacco products industries. From this it is seen that
the hours in the cigar industry have been uniformly longer than
those in the cigarette industry. In the latest year shown, cigar
plants had an average week of 36.3 hours, while the average week
for the cigarette industry was 34.5 hours.
It has been stated that the lack of adequate advertising by
the cigar industry has been partly responsible for its downward
trend. At the same time it was stated that effective advertising
by the cigarette industry played an important pait in its phe-
nomenal success. Just what is the situation relative to the com-,
parative advertising of the two industries?
Tables 355 and 54 contain the answer to this question. These
show the respective advertising that was done in 1958 by leading
companies in the two industries. Twelve companies comprise the
cigar manufacturing group, while there are four companies repre-
senting the cigarette industry. This might appear as an unequal
comparison, but it is not, as the twelve cigar companies are re-


latively lse important in the cigar industry than are the
cigarette companies in the cigarette industry.
The striking thing about these figure is that in 19
four cigarette companies spent a total of 33,409,000, hi the
twelve cigar companies were spending $2,877,000. The adve ing
expenditure for the cigarette group was thus 11.6 times as at
as that of the oigar companies. This seems to bear out th
pression that the cigarette industry advertises much wore -
sively than the cigar industry.
The respective types of advertising engaged in by the
panies in both industries can be seen from the tables. Th gar
advertising is mostly through the medium of newspapers, 80 cent
of the total being of this type, with 25 per cent in radio er-
tising, and a very small amount in magazines. The oigaret co-
panies carry 57.4 per cent of their advertising in newspa 24.4
per cent in magazines, and use the radio for 18.2 per cent.
Much difference exists in the advertising appeal of c ette
and cigar advertising. The former is for the purpose of c ig
new smokers as well as to convert present smokers to a part ar
brand. Most of the cigar advertising is basically a compe on
of firms within the cigar industry, each striving to fourth ts
brand at the expense of other cigar manufacturers, and all al-
ing to existing smokers. Until a broader concept of advert ng
is adopted by cigar manufacturers, emphasizing the cultivat of
new smokers by industry-wide advertising, the cigar indus 11
not gain its lost ground among American consumers.

6 Operating Costs and the Results of Operations.

Table 55 contains figures gathered by the Census of ao-
tures, showing certain operating data for the cigar ndust the
United States in census years from 1859 to 1937.
The number of establishments is first shown, and it d
be stated in this connection that only the larger factories e in-
cluded in this census. A striking fact is that there were e
cigar establishments in the United States in 1859 than in 1 .
However, the ones operating in the former year were ve
small. The number of cigar manufacturing establishments ed
its peak in 1904, with 16,394. Prom that year there was a dy
decline to 695 in 1957.
The number of wage-earners in the cigar industry in
to a peak of 140,956 in 1914, then declined in number each
to 1937, with a slightly lower total in the depression. p 37
there were 55,879 workers in the industry.
Wages paid were highest in 1921, with a total of $91, 000.
In this year the price level was very high, which accounted tly
for this large total. The high figure given for 1925 incl
cigarettes, so should not be used. Prom this peak in wages re
was a decline to 50,061,000 in 1935, then a rise to $57,5
in 1937.
Average annual wages increased from $517 in 1859 to in
1925. They declined to $551 in the depression year 1955, t in-
creased to $671 in 1957. Weekly wag, computed on the bas of
average number of weeks worked, were- 13.45 in 1937.
Material coats and value of product followed the gene trend
of the industry, being $87,341,000 and $169,237,000 respect ly,
in 1937.
Table 36 shows the relation of the cost of materials a labor
to value of product. It is seen that materials comprise a1 tly
over half of the value of the finished cigars, and labor be
one-fourth and one-fifth. The proportion of each to the to has
increased slightly since 1929, materials from 44.4 per cent 51.6
per cent, and labor from 21.6 per cent to 22.2 per cent.
The proportion of total cost that is represented by la is
much higher in the Tampa hand plants than in the national i try,


while that for materials is lower. Figures given in Table 80,
Part VI of the Rep6rt, show that labor comprised an average of 40.5
per cent of cost of sales, tobacco 30.2 per cent, and taxes 19.2
per cent, in the Tampa hand plants, during the period 1950-1938.
In Table 37 the average weekly wage per worker in the cigar
industry is given for the United States and the principal producing
states, for census years from 1927-1957. This wage is based on the
average number of working weeks. In 1937 the average cigar worker
in the United States received $15.43.
Of the individual states. New Jersey paid the highest average
wage in its cigar factories, k14.08 per week. the modern hand
factories in New Jersey using the competitive method of manufacture
have much higher wages, but there are many small hand and machine
plants paying low wages, which reduce the state's average. The
average weekly wage received by Florida workers was $13.77, while
the average wage paid in New York was $15.74.
The average wage paid in Pennsylvania was $12.79. As has been
noted, the cigar industry in this state is largely mechanized. The
modern machine plants of Philadelphia have a wage average consider-
ably higher than this figure, but there are a niujber of.small
machine plants in other sections of Pennsylvania, making very cheap
cigars and paying low wages, which have lowered the average wage
paid in this state.
This table also shows decreased average wages in the cigar
industry, for the entire country and for each of these individual
states. The decrease has been greatest for Florida. However,
inasmuch as the figures for the earlier years included the cigar-
ette industry, it is difficult to make exact comparisons. As the
cigarette production in Florida is negligible, it can be concluded
that the wage decline in this state has been the sharpest of any.
Wages in New Jersey have shown the greatest stability of any of
the -states in this group, and have recorded the greatest increase
since 1935.
Table 38 contains annual summary indices for the cigar in-
dustry for the period 1919-1936, the year 1929 being used as a base
year. From this table it can be seen that employment in the in-
dustry has decreased much more rapidly than production. In 1919
the employment index was 135.8 as compared with the production
index of 112.5. In 1936 the situation was reversed, with the pro-
duction index being 77.6, and the employment index 66.5. Between
these years production decreased 30.9 per cent, but employment
decreased 51 per cent.
The number of man-hours required in the industry has shown a
pronounced decline of 64.1 per cent in the period, or from 158 to
49.6. In explanation of this it is seen that the output per man-
hour has almost doubled, increasing from 81.4 to 156.5. The out-,
put per wage earner has likewise increased, from 82.7 to 116.7,
or 41 per cent.
These figures reflecting the trend in the reduction of work-
ers and man-hours, and the increase in output per worker and per
man-hour, show the results of mechanization and modernization of
the cigar industry. A large proportion of the operations of the
industry, which were formerly performed by hand labor, are now
being done by machines, aided by mechanical processes and more
efficient plant operation. The use of machine technique and effi-
ciency has greatly reduced the need for labor in the cigar indus-
However, the'reduction in employment in the cigar industry
has not been caused entirely by mechanization. According to a
study made of this situation by W. D. Evans, of the Bureau of
Labor Statistics, only about one-third of the displacement was
caused by machinery, the rest being due to the decrease in the
volume of production.

"About 47,400 wage earners were displaced from the cigar in-
dustry during the period 1919-1955. Increased use of automatic


igar machines terminated the services of about 16,600 of the
rage earners. Decrease in the total annual volume of product
n part compensated for by a shortened work week, has result
he displacement of abot, but probably somewhat fewer than,
i0,600 wage .*earir.""

In Tables 39.and 40 can be seen the internal revenue col
sectionss from cigars and cigarettes over a period of years an
)y states. The first of these tables shows total internal r
renue collections from 1913-1938. There is a striking diffe e
in the amounts collected from the cigars and cigarettes. In 5
;he cigar revenue was the larger, but in 1958, while cigars
)12,751,000 in revenue taxes, cigarettes paid $493,453,000.
cigarettee revenue has grown amazingly in this period. The in4
-ernal revenue paid by the cigar industry has declined 44 per int
betweenn 1913-1938, or fran (22,796,000 to $12,751,000. This $
lue both to a reduction in cigar output, and a shift to the 1 r
,rades of cigars, on which the revenue tax is much lower.
The second of the tables gives the internal revenue rece a
'rom cigars, according to the different states. Pennsylvania
jays the largest amount, $4,005,000, which is almost one-thir
)f the total. Florida pays the next largest amount, $2,525,
)r 18 per cent of the total. New Jersey pays $1,855,000 or 1
er cent. New York, Virginia, South Carolina and Ohio each p
nore than one-half million dollars in internal revenue taxes.
It is believed that some information concerning the earn s
,f American cigar manufacturing companies will be of interest
leaderss of this Report. Such figures show the results of opes ions
.or these companies, and indicate the profitableness of cigar
manufacturing. They will also serve as bases of comparison w
the operating results of Tampa cigar companies. It was not p bible
;o include a large number of cigar companies in this tabulati
so five of the most important ones in the industry were select
(ost of these companies use the machine process, the American gar
companyy being an exception in producing the bulk of its outpu
land. They are reputed to be efficiently Operated. Tables 4 d
L2 give the earnings of these companies over a period of year
The first of these tables shows the earnings as a percent
,f net worth. This gives the return on invested capital, whioc is
n excellent index of operating results. It is seen that no f
he companies has suffered a loss since 1935. Two of these
anies did not have any losses during this period, while two
loss in only one year and the remaining one, losses in only o
ears. The deficits of the American Cigar Company in 1930 an
931 were in the two years immediately preceding the removal
ts plants from Tampa and Havana to Trenton.
All but one of the companies had a return on capital exc
ng 5 per cent in 1958, one of these making 8 per cent and on
2.3 per cent. Only one of the companies had unsatisfactory
its of 1 per cent. The earnings of this company have decree
ron 35.5 per cent in 1927 to 1 per cent in 1938, the cause f
his trend being unknown. Two of the companies have had a
ion in earnings franm the returns in 1927, but are still ea
bove 5 per cent. The earnings of the two remaining companies
re about on the level with those in 1927. The second of these
ables gives the earnings per share of common stock of these c
anies over a period of years.
The earnings of these large cigar companies are in sharp
rast with those of the Tampa hand plants, which are very much,
Dwer. These are given in Table 77, Part VI of this Report.
The record of earnings of these cigar companies seems to
fnstrate that large, well-managed plants, with efficient meth

1. The Cigar Manufacturing Industry. 1956. W. D. Evana. Uni
:ates Govermnt Printing Office.



and modern systems of manufacture, can prosper in the cigar mau-
facturing business, even in depression years.
As this survey has not been concerned primarily with the
national cigar industry, but with the cigar industry of Tampa, it
was not intended to go fully into the national situation. The in-
formation given about the cigar industry of the United States has
been for the purpose of facilitating a better understanding of
the position of the Tampa plants in the entin industry, together
with some of their Joint problems.

Part IV


1 Early History in Key Woet.

The production of cigars in Key West may be traced as back
as 1831 when William H. Wall operated a factory employing t
fifty workmen. Wall's factory was destroyed by fire in 18
Others were engaged in cigar manufacturing in the pe
prior to 1868, but that year, marked by rebellion in Cuba nst
Spanish rule, saw the Key West industry begin more than tw c-
ades of growth. Development of cigar manufacture in Key
required the presence of skilled Cuban cigarmakers. Many
persons were among those forced to flee the Island of Cuba
cause of political views or activities. Moreover, certain -
ish manufacturers sought Key West because it offered great se-
curity for property and life.
The first cigar firm to leave the unstable conditions the
Spanish colony in Cuba was that of Senor V. Martinez Ybor. e-
cause he was suspected of opposition to the Spanish gove
this factory operator moved to Key West in 1869 in search
safety from depredations from Spanish volunteer troops.. -
lishment of Ybor's factory in.Key West marked the founding
Florida's clear Havana cigar industry. Eduardo Manrara was e
a partner in the Key West firm. Afterwards, he became a
leader in the Tampa cigar industry.
The transfer of Ybor's factory operations from Havana Key
West was followed by the establishment of cigar plants in K
West by the following firms: Seidenburg and Company, E. H. to
and Company, George W. Nichols, Ferdinand Hirsch Company, Ruy
Lopez Company.
For twenty-five years preceding 1894, Key West held t title
of "Clear Havana Cigar Center of the United States." In t pe-
riod, Key West cigars became widely known as a quality pr .
After reaching a maximum of 100,000,000 cigars annually in
period 1890-1894, the cigar output of this Florida island-
began to decline. The downward trend was checked by a revi
which saw the 100,000,000 mark again reached in 1911.

2 Establishment and Early Progress in Tampa.

The way was prepared for an exodus of Key West factori1 to
Tampa in 1886 when Ybor and Manrara considered removal of t r
factory operations to Mobile, Galveston or New Orleans. Wh
the offers of these Gulf cities were under consideration, Ybor
met Ignacio Haya, another cigar manufacturer from New York,b was
also looking for a good branch plant location. In turn the et
Senor Don Gavino Gutierrez, a Spanish gentleman who was re ing
to New York by water from a trip to Tampa. His mission to t
village had been to investigate the possible location for a serv-
ing factory to make food delicacies from tropical fruits. nor
Gutierres had been impressed by the future possibilities of pa
as a manufacturing center and in the course of conversation th
Senors Haya and Ybor, he induced them to return with him an onsid-
er the merits of that village as a location for their fact es.
When the cigar manufacturers saw the proposed location they re
impressed with its climatic and transportation advantages b were
not satisfied with their offer from the Board of Trade. Th resi-
dent of this organization in 1886 was Colonel W. B. Henders As
the visiting manufacturers started to return home, Colonel person
met and informed them that he was authorized to offer as a their
concession a large area of local lands for the small sum of ,000.
This offer included every other block in a strip of land in at is
now Tampa Heights and the uptown district of Ybor City, alo Seventh
Avenue to the Hillsborough River. This inducement proved sul cient-



ly attractive, and resulted in the removal of the cigar factories
of these manufacturers to Tampa.
The huge areas of land acquired for so small a sum were to
become the foundation for two real estate organizations. These
were the Ybor City Land and Development Company and the Sanchez
and Haya interests. The former company incorporated in 1886 had
as its officers: V. M. Ybor, president; Eduardo Manrara, vice-
president; George T. Chamberlin, secretary; and Peter 0. Knight,
attorney. The Ybor land company made extensive purchases in ad-
dition to land first acquired as a subsidy to cigar manufacturing.
The third factory to locate in Tampa was that of Lozano, Pen-
day and Company, which started operation in January, 1888. In the
following year, the Board of Trade used a cash bonus plus land
donations of the Ybor City Land and DeVelopment Company to attract
the R. Monne interests to Tampa. For a period of approximately
ten years buildings for incoming cigar manufacturers were offered
free of rent in exchange for a contract that they would employ
not less than a stated number of workers and produce not less
than a given quota of cigars.
Immigration of Cuban cigarmakers from Key West and Havana
followed the movement of Spanish factory operators to Tampa.
Since Key West was the center of Cuban revolutionary activities,
the strained relations between Spanish manufacturers and Cuban
cigarmakers caused considerable difficulty. Added to this was
the strife engendered by constantly recurring labor troubles.
As Browne remarks:

"Strikes, which seem to be a part of the ,igar manufacturing
industry, were constantly occurring therein."'(

After a costly strike at the Seidenberg factory in Key West
in 1894, the operators refused to employ Cuban cigarmakers any
longer and proceeded to obtain Spanish workers to replace them.
An objective account of this episode states:

"The unions believed that these men were being imported by
the manufacturers for the sole purpose of breaking the power of
labor organizations. They requested that such discrimination
stop. To this demand the manufacturers paid no attention. In the
end a particularly flagrant disregard of the feelings of the men
precipitated a general strike, and in the riotous demonstrations
which followed, several factories were wrecked and the city made
untenable for Spanish worken."()

Besides offering a haven of rest from the embroligio of rev-
olutionary and labor strife, Tampa offered cigar manufacturers
liberal inducements of land, factory buildings and cash subsidies.
In the early eighteen-nineties, Colonel Hugh C. MoFarlane,
the founder of West Tampa, was successful in establishing another
cigar town in the vicinity of Tampa. The customary subsidies of
land, buildings and money were used as a means of attracting cigar
manufacturers to West Tampa. West Tampa plants were also granted
an additional concession of free taxes for a stated period.
An attempt was made about 1900 to develop a cigar production
center at Port Tampa, with several plants located there as a nu-
cleus. However, these efforts failed because of insufficient so-
cial attractions for the Latin cigar workers, such as were to be
found in Ybor City and West Tampa.
The pioneer cigar factories coming to Tampa between 1886-
1905 are shown in Table 43.

1. Key West. the Old and the New, Browne, J.B., 1912. Page 126.
Published by the Record Company, St. Augustine, Florida
2. Report of United States Immigration Commission, Vol.15, Page
186. Published by United States Government Printing Office, 1911.


3 Business Organization in the Industry.

The early oigar firm of Tampa drew heavily on the f gt
of individual enterpriaers. The pioneering organizations
prinipall proprietorships and partnerships. Whatever la
capital eziated as compensated for by the willingness of
citizens to aubsidise the establishment of new factories.
founders o companies were in many eases cigarnakers who h -
cumulated savings and aho possessed the ability to manager
plants. Iaoh depended on availability of loans on tobacco.
success in securing these loans arose chiefly from the confl e
of bankers in the manufacturers' general worth as business
The first attempt of large scale industry to enter the cle -
vana business in Tampa arose when the American Tobacco C
or "trust", sought to monopolize high-grade cigar manufao
Before the stage was set for the trust proper, an imp t
consolidation occurred which involved several Tampa concern
The Havana-American Company was an independent corporation
ized November 9, 1899, with a capital stock of $10,000,000, t
four-fifths of which was outstanding. The first Havana-Ame
Company wea formed by the combination of the following ten

Ybor-Naurara Co., Tampa.
Eugene Vallens and Co., Chicago and New York.
S. Hernsheim Bros. and Co.., New Orleans.
Seidenberg and Co., New York and Tampa.
Juliuas llinger and Co., Tampa.
D. L. Trujillo and 8ons, Key West.
Rosener, Arnold and Co., New York.
Horase R. Kelly and Co., New York.

In July, 1901 these ten factories were transferred to
American Cigar Company and by vote of the stockholders the -
American Company was dissolved on July 31, 1901. A new Ha
American Company was organized and the clear Havana business
the original company transferred to it. The officers in th -
pany were as follows: Isadore Hernsheim of New Orleans, pro ent;
Eduardo Manrara of Tampa, vice-president and general agent Tam-
pa; Eugene Valleot of Chicago, general manager.
In the years following 1901, the Tampa plants of the can
Cigar Company consisted of three clear Havana factories emp
about 1,000 workers. The factories were operated as J. Ill r
and Company, Ybor-Nanrara and Company and Seidenberg and C
Gradually these establishments came to be called the "trust -
Opposition to the allegedly monopolistic intentions of
American Tobacco subsidiary in Tampa arose not only from or zed
labor but also from independent manufacturers. The trust h -
cess to the economies of large-scale operation which served a
competitive advantage over the smaller firms. Moreover, the at
factories insisted on non-union employees.
Consolidation of weaker firas by the strong and absorpt of
old businesses whose leadership was gone has been a process rly
common to the. Tampa industry.
In 1919, the Consolidated Cigar Company, a concern in -
rated in Delaware, May 14, 1919, acquired the following con

E. M. Sobwartz and Co. New York
T. J.'Dunn and Co. New York
SJose Lovera and Co. Tampa
El Sidelo Cigar Co. Tampa
Samuel J. Davis and Co. Tampa
Lilies Cigar Co. Detroit

The Consolidated Cigar Company transferred its operate to
New York, Trenton, Philadelphia and several Pennsylvania to


The firm was operating twenty-six factories in that area in 1925.
Brands which were moved from Tampa to eastern factories included
Dutch Masters, The Harvester, 1E Sidelo and The Lovera. The oper-
ating results of the Consolidated Cigar Company from 1926 to 1939
were presented in Tables 41 and 42, Part III, Of this Report.
A noteworthy series of consolidations beginning in 1954 in-
volved first the absorption of the Sanchez and Haya pioneer brands
by Wengler and Mandell in 1934. In January, 1936 the Gradiaz-An-
nis Company absorbed Wengler and Mandell. These changes involved
the concentration of brands formerly produced by two other compa-
nies into the organization of Gradiaz-Annis. Plant capacity in
Tampa was thereby reduced but the individual plant capacity of the
consolidating firm became more fully utilized. Costs were further
lowered by the economies effected in purchases, sales and adver-
Recently the change of plant locations from Tampa to other
points has been a threat to the city's industry. In the past year,
Escanlente and Company has transferred all of its operations to
what was formerly a New Orleans branch factory. Much discussion
continues to center about the reasons American Cigar Company fac-
tories left Tampa in 1932. A number of factors responsible for
this shift will be discussed later in this section of the report.
For many years, Tampa's superiority as a center for fine ci-
gars has been widely acclaimed. Movement of thi American Cigar
Company's clear Havana factories to Trenton, New Jersey and the
growth of demand for cheap cigars and cigarettes as substitutes
for high grade cigars are factors which threaten Tampa's claim to
domination in clear Havana production.
Instead of restricting its production of high-grade cigars
to clear Havanas, the Tampa industry has witnessed the development
of the successful manufacture of quality cigars using Connecticut
shade-grown wrappers and Wisconsin binders with Havana and blended
long filler.
As it has developed, the Tampa cigar industry has been com-
posed of three main groups of persons:

(a) Those possessed of a knowledge of blending and.tobacco
buying. In most cases this has required a Spaniard or a Cuban ac-
quainted with the regions of Cuba which produce the desired to-
(b) Those possessed of a knowledge of cigarmaking. From the
ranks of cigarmakers have been drawn the managers and owners of
most of the plants.
(c) Those specializing in-the marketing of cigars. Frequent-
ly, a member of the Hebrew race has been drawn into supervision of
the cigar firm's sales department.

The early cigar factories were principally all organized as
individual proprietorships or partnerships. In many ways these
firms have evolved as a series of family enterprises with members
of the controlling families inheriting a right to positions in
the business. The limited capital of small business firms was a
handicap preventing many cigar factories from attaining their most
economical size. Where both capital and enterprise were available,
the many "one-factory" organizations did not reach the maximum
economies possible in large scale purchases, advertising, research,
etc. Tampa manufacturers have attained selling economies through
the operation of selling offices in New York or Chicago.

4 Migration of Tampa Plants to Other Localities.

The history of the Spanish hand branch of the cigar industry
is marked by the easy transfer of factories to new locations.
Since the major capital requirement for. this type of factory is
for investment in tobacco, a variable item of boost, the location
depends to a large extent upon the availability of labor at prices


which make production profitable. Over-rigid policies of t
unions have been a stimulus to the transfer of plants from com-
munity where it is difficult for new methods to be adopted
another where obstacles are less restrictive.
The cigar companies which have closed their Tampa plan and
moved to a new location, those which have consolidated wit, her
Tampa companies, and those which have ceased operations ent ly,
are shown in Table 44.
Migration of cigar companies from Tampa have been to r
Florida towns and cities as well as to New York, Hew Orleanr Tren-
ton and Passiac, New Jersey and other points. The most c y
asserted reason for these removals is unsatisfactory relati with
local unions. Attempts to install new sizes of cigars by manu-
facturer and the application of labor prices on the new siz con-
siderably above the competitive rates were the most frequent
scource of friction. In practically all cases the cost of oval
has not prevented the migrating firm from establishing sati ctory
earning power in the new location. In the case of the Amer n
Cigar Company, its experience in Tampa had been marked by o si-
tion not only of organized labor but also of small, indepen t
manufacturers. Moreover, in moving its clear Havana operate a
from Cuba in 1952, it was obvious that in order to attain m
economies from large-scale production, the inclusion of its pa
factories became necessary.
The absorption of the brands made by Sanchez and Haya, wab-
Davis and Wengler and Mandell by the Gradias-Annis Company
been mentioned. Other firms which closed during the past t years
include Eduardo Gonsalez and Company, Arguelles, Lopez and pany,
Nordacs Cigar Company, Tampa Cuba Cigar Company and Serrano os.
While the motive for consolidation was mainly reduction of r-
head costs through.increased volume, the chief reason for
factories ceasing to do business was the financial trouble tt
grew out of poor management, high costs of labor and increa
cost of materials.
Much popular interest has centered about the removal oh lants
from Tampa as well as the closing and consolidations. It been
estimated that nearly 4,000 persons formerly employed in the amps
industry were displaced by these movements.

5 Evolution of Employer-Employee Relations.

During the first ten years of the Tampa cigar industry, la-
tions between employers and their workers were comparatively ee
from difficulties. In 1886 an agreement had been entered i by
the citizens, workmen and manufacturers under which amicable et-
tlement of disputes was possible. The period of tranquilli as
relatively short as the same types of labor troubles which
existed in Key West soon appeared in Tampa. According to
Government survey made by the Immigration Commission of 191 the
Labor situation early developed as follows:

"Unions, international and local, representing every o pa-
tion known to the industry, singly and in groups, sprang in be-
ing as laborers increased in number. In time the manufac t
had to suffer not only for their own sins but for the jeal es
and strifes among the unions themselves. Under the leaders of
unscrupulous men, these bodies became more and more unreaso le
in their demands. Factories were often brought to a full a in
the busiest hours of the day, while a committee appointed o e
spur of the moment repaired to the office of the company to nd
an immediate adjustment of some fancied or real grievance.
arbitrary and powerful .did the unions become that they were en
successful in excluding the managers and owners from the ro in
their factories where the men were at work. Naturally stri ,
some of them very bitter and of long duration, were often
results of these conditions. As frugality is not a charact a-


tic of the Cuban cigarmakers, they were frequently reduced to dire
straits in the course of a long strike, and the burden of feeding
and caring for them fell upon the citizens of Tampa.

Although the International Cigarmakers' Union was formed na-
tionally in 18e4, it was unable to manifest any important strength
in Tampa until after the general strike of 1901. From 1886 until
1900 the dominant labor organization wap one brought over from
Cuba--La Reslstencia Society. During the troubles of the Spanish
manufacturers and Cuban workers arising from sympathy with oppos-
ing sides in the struggle for Cuban independence, La Resistenoia
was not very prominent.
The Spanisn-American War was decla ed in 1898 and Tampa be-
came the port of embarkation for troops sent to Cuba. During the
summer of 1898, there were as many as 50,000 United States troops
encamped in and around Tampa. The city became the headquarters of
the Cuban revolutionists. Workers in the cigar factories made
frequent cash contributions to the cause of Cuban independence.
Workers in one factory voted to donate 4 rifle each to the Cuban
Some of the Spanish manufacturers who.were suspected of spy
plots by their suspicious.workers, and in consequence roughly
treated, considered leaving the cigar business. The offer of full
protection for their lives and property came at an opportune time
from Governor H. L. Mitchell. The Governor promised to do all in
his power to protect the manufacturers and if necessary to use the
state troops for this purpose.
In one instance, the Centro Espanol, local Spanish club, was
seized by United States troops. Investigation proved that a false
report originating with an alleged Cuban committee had reached the
United States Secret Service and that the Centro Espanol was not
in fact "a nest of spies" nor a secret storage place for arms, am-
munition and deadly explosives.
Throughout the brief period of warfare with Spain, business
in the cigar industry remained good. Shortages of tobacco existed
to some extent but the manufacturers had proteOted their business
by the importation of large stores of Cuban tobacco. These imports
came in the spring of 1896 as the result of an edict by General
Weyler, of the Spanish Army in Cuba, prohibiting exportation of
tobacco after.the expiration of a ten day period. It is reported
that two steamers belonging to Henry B. Plant were sent to Havana
and returned fully loaded with Cuban to acco before the time limit
The first general strike in the Tampa cigar industry was the
culmination of competition among a small but growing membership
in the International Cigarmakers' Union and La Resistencia Soci-
ety. Its immediate cause grew out of demands by La Resistenoia
that Cuesta-Rey and Company abolish its branch factory at Jackson-
ville. Refusal of this company to discontinue its branch was fol-
lowed by a walkout of members of La Resistencia from the Cuesta-
Rey factory. International Union members refused to quit work;
instead they kept their benches and continued to make cigars. La
Resistencia countered by demanding that unless the manufacturers
agreed to put International members out of their plants, La Resis-
tencia would declare a general strike and at the same time. demand
an increase of four dollars per M on all cigars made.
In the general strike which followed, a committee composed
of the citizens of Tampa, on August 6, 1901, caused the arrest of
sixteen leaders of La Resistencia. They were guarded until mid-
night when they were placed aboard an unknown vessel in Tampa Bay
and deported to Central America. Membprs of the Cigarmakers' In-
ternational Union did not participate in the deporting activities.

1. Report of United States Immigratio Commission, Vol. 15,
Page 226-7, 1911. United States Goyernient Printing Office.


In a report of an Inter2tiogl Union oganizer sent t
during the strike, it wa stated that
*aroe ar mlr good men in la sesistenoia, but they -
tunately go with the leaders, wo bile they my not intend
simply MlM trouble fif theaelves, the oigarmkers and the 1-
ness men in gIn eral"*l
Although the faotorie resumed work with a remnant fo the
official period of the strike continued fo some four onth til
xoveber 26 1901. That the International Union proceeded ben-
efit from teL lost strike o ts rival is indicated by the
of membership of local union 8 6" from twenty-four members
1898 to 780 in 1905.
During the strike of 1901, La Resietenota asked the Ha
members of ULiga, the Onban eiogarars' union, for a atr
benefit fund to be derived from contributions of 10 per 0n
their wages. his request as rejected.
The strike ge the Italians an opportunity to enter
cigaraker' tra d. Tap received a anber of Italian at
during the. eigteen@-nneties after large nubers of that na 1-
ity has been oompelld to leave the city of lew Orleans fol g
the assassination of the chief of police. Practically all
these people ere Sioilans.
On their arrival in TYaa, the Italians sought empl in
the cigar fastories. The unions, domiated by Spaniards -
bans, refused to adkit them as apprentices but they accept
rougher Jobs and in spite of every opposition learned to I-
gars. 2hir opportunity ame in the 1901 strike to take th
places of a .tres. MNa the conflict was settled and the a
threatened to retn and oust the from their jobs, the I a
bought their paeeo by bribing the foreman.
The second g ral strike in TIapa cigar factories oo
June 25, 1910, and cont#ied until January 26, 1911. It wa n-
ducted by the 01garmakers' International Union.
The abuse of this strike y be traded to the nonccopl
of certain anntfetpures with the equalization of prices -n 0.
This plan of equalisation originated a a means of establi
uniformity of lbor prices amog the foatories of Tapa. It a
designed to heek the practice of cutting wage rates, which
become a method of fair competition among the cigar firms.
scale of prices hlich wa finally adopted, together with the e
as to sizes and sapes of egars has popularly beooe known ithe
Prior to the strike, the Cigarmakere' International Uni be-
gan a mebership campaign Retaliation by the manufacturers
when some S0 per oent of the selectors and 2 per cent of t l-
garakes were looked oat of the factories. meanobile a
hip campaign was waged successfully in thirty-seven faetoi be-
longing to the manufacturers association. It is. reported
the union still sought to avoid a strike by seekingg interven
through the Board of Trade to check the inipient conflict.
Board of Trade hesitated to oat at that tie. A strike vote
taken with positive results and the strike began.
Bdtwn Stanley, ho was then oorrepondl secretary of
Joint Advisy Board of the unions reported through the Ci
makers' Joural that the following demas were made by the
(a) Recognition of the union;
(b) Complianoe with the equalization of prices of 1910.
Following the murder of Z. -asterling, a bookkeeper,
the Bustillo faetoy in West TaIpa, local citizens becm as d
and an unknown op of lynchers took the lives of two Itali
who were allegedly guilty o the crime. In addition, e

i. Cigarakers' Official Journal; October 15, 1901.


the cigarmakers' unions were seized by officers of the law in an
effort to prove that prominent strike leaders were accessories to
the murder of the factory bookkeeper. Members of the Joint Advi-
sory Board of the unions were temporarily placed in jail pending
the investigation.
The conflict was officially ended on January 26, 1911. Mem-
bers of five unions voted a secret ballot. As a result, 1,100
voted to return to work, and sixty-six voted against it. The cause
for termination of the strike was given as the lack of funds, the
Joint Advisory Board being in debt for $13,000 paid out in strike
The next general strike occurred on April 14, 1920. The
questions involved in the strike concerned the right of the employ
ers to operate an open shop and to maintain the continued discharge
of union "shop collectors" who were dismissed in December, 1919.
It was in this month that the independent manufacturers organized
in favor of the open shop.
In the report of the impending strike by the Morning Tribune
of April 14, 1920, the following account is given:

"With issuance of the strike order, 7,613 union cigarmakers
will quit work, automatically throwing out of work another 800
non-union men scattered throughout the hundred or more factories.
Others crafts will be affected, more than 400 pickers and packers,
1,500 dependientes, office clerks and others, and several hundred
strippers and binders, etc., being expected to join the strike
which will throw out between 11,000 and 13,000 workers."~1l

As the strike was declared, a rival organization, the Torce-
dores Society appeared on the scene, proclaiming an open shop.
Striking International Union members charged that the Torcedores
was merely a group of strike breakers originating with the employ-
ers. The truth of this charge may be questioned. It is stated
that Torcedores claimed a membership of 1,800 while it actually
had only about two hundred.
The extended strike of 1920 seriously crippled local cigar
production. The total output declined 53 per cent from the volume
of production in 1919. This strike was a costly one for the Tampa
cigar manufacturers as many of the plants lost business never to
be regained. The unsatisfactory condition of many of the Tampa
plants today can be traced to the loss of customers and markets
in 1920. A few manufacturers sought relief by establishing branch
factories outside Tampa, several going to Punta Gorda and Fort
Myers. The local labor supply was reduced slightly by the shift
of workers to other locations.
The strike imposed heavy financial burdens on both employers
and the International Union. The treasury of the International
Union was drained of more than a million dollars in strike bene-
fits. Each striking member was supposed to receive a benefit of
$5 per week from the union, but it is alleged that many workers
received several benefits each week. In order to pay these bene-
fits, hundreds of thousands of dollars in voluntary contributions
had to be added to accumulated funds of the union.
A heavy decline in commodity prices occurring during the pe-
riod of the strike brought drastic losses on inventories held in
factories and warehouses. This fact, together with heavy increases
in overhead costs per unit of output, caused disastrous losses for
the manufacturers. Subsequent to the strike settlement, two local
firms of long standing closed, selling their brands to others.
These were F. Lozano, Son and Company, which leased its plant to
Corral, Wodiska y Co. and Francisco Arango and Co., which sold
its brands to Sam Davis, of Schwab-Davis and Company.
An interesting old custom in the cigar factories of Tampa was

1. Tampa Morning Tribune, April 14, 1920.


that of the "readers." These readers were hired by the wor
to read novels and other literature during working hours.
were taken out of the factories in 1920, and put back in 19 un-
der an arrangement Whereby the reading material had to be p ed
on by a committee of cigar workers. It was claimed that ra
material and literature offensive to the women in the plant a
frequently included. In 1953 the custom of the readers in
plants was finally abolished.

6 Organization of Bnployers and Employees.
An organization of Tampa manufacturing plants known as ie
Tampa Cigar Manufacturers' Association has existed since 19
This association was formed for the purpose of cooperation ad-
vertising and public relations, seeking of economical frei
rates, and group handling of labor relations. Its function pro-
viding a united group for negotiation of wage contracts and e
handling of labor disputes is its present main Justificatio It
is planned to realize other objectives in the future. The o-
ciation maintains an office, with a full-time secretary, in ch
records pertaining to the Tampa cigar industry are kept.. Mr. an-
cis M. Sack is the present secretary of the Association.
During the past ten years presidents of the Cigar a
turers' Association included the following: Jose Arango, 19
1930; Moses Bustillo, 1951-1932; A. L. Cuesta, Jr., 1953-19
Antonio Santaella, 1956-1937; Jose Perez, 1958-1939.
The International Cigarmakers' Union has been the domi
labor organization in the cigar industry since 1901. Prior
that time it had a small organization at Tampa and Key West
most of the workers in both cities preferred local unions.
power of La Resistenoia was broken in the strike of 1901.
The national organization of the Cigarnakers' Union is
filiated with the American Federation of Labor. National o ces
are maintained in Washington, D. C., Mr. R. E. Van Horn bei e
present national president. Since the majority of its total -
bers reside in Tampa, a personal representative of Mr. Van
is maintained in this city. At the present time, Mr. Charle
Norona serves in this capacity.
Seven local unions of the International Cigarmakers' Un a
are located at Tampa. These include the following:

#SS36 0garakers #494 Factory Employees clerksf
#462 Cigaralters #496 Cigarmakers
#474 Packers #500 Cigarmakers
#493 Selectors

The local unions of Tampa are governed by an executive y
of the unions known as the Joint Advisory Board. Headquarters f
this board are maintained at the Labor Temple, Ybor City. E. ed
members are assessed dues of #1.00 per month, while unemploy
members pay nominal dues of 10 cents per month. Since a olo
shop is part of the union contracts of 1938 and 1939, each c r
worker must remain in good standing with the union in order .be
The present umemberahip in the Tampa cigar unions is 7,6
This is considerably less than the membership in the 1920's. *
1923 there were tl,659 members in the local,cigar unions.
A desOription of the organization for collective bargal
and settlement of disputes in the Tampa cigar industry is as
follows: .

(a) Organization for settlement of minor disputes in tho

As provided by the agreement signed August 25, 1939, wh
expires June 30, 1941, disputes will be considered as they e
in the individual plants. Whenever workers have grievances
are reported to the union delegate "shop collector" in each t.


Thereupon the shop collector seeks to remedy the complaint by
taking the matter into negotiation with the employer. In case
settlement cannot be effected between the shop collector.and em-
ployer, the affair is referred to the two Joint Advisory Boards
of the unions and employers.
(b) Organization for negotiation of the settlement of dis-
putes of a general nature, although this might include the settle-
ment of minor disputes which cannot be settled in the individual
plants. ,

Meetings of the two Joint Advisory Boards negotiate the set-
tlement of these general issues, and unsettled plant controversies.
As already explained, the Joint Advisory Board of the unions
represents seven unions. During the summer of 1939, this Board
was composed of approximately twenty-eight members. Each local
union was represented by a minimum of three delegates for the
first 500 members with one additional member allowed for each sub-
sequent 500, or fraction thereof as large as 200. Representatives
are elected annually in the periodic elections held in the Labor
The Joint Advisory Committee of the Cigar.Manufacturers'
Association is appointed to deal with the Union Committee selected
from the Joint Advisory Board.
In the summer of 1939, this employers' committee included
the following: Armando Rodriguez, chairman; Francisco Gonzalez,
John Levy, Jose Colemanares, Luis Lopez, A. Gonzalez, Mariano
Alvarez and Anthony Florez.

(c) Organization for equalization of labor prices for various
sizes and shapes of cigars manufactured.

Uniformity of labor rates between the Tampa plants is governed
by a price scale organized according to the various sizes and
shapes. As has been stated, this price list of some 200 differ-
ent sizes and shapes is known as the Cartabon. It represents a
set of labor prices which are rarely changed and then by means of
what amounts to blanket increases and decreases of the rates. New
sizes and shapes can be adopted under the supervision of the
nivelating or equalization committee. This group is composed of
six employers and six employees. Any manufacturer who violates
the rules and regulations established in the Cartabon is subject
to investigation and possible penalty imposed by this equaliza-
tion committee. In the summer of 1939, the committee included:
Employers, Armando Rodriguez, chairman; Francisco Gonzales, Jose
Colemanares, A. Gonzalez, A. Bustillo and John Levy. Employees,
Luis Diaz, President; Ramon Diaz, Manuel M. Menendez, Antonio
Fuegos, Lazzaro Alonso, Tony Alfano.
(d) Organization for negotiating new wage agreements.

As the date approaches for the expiration of a wage agreement
between the Cigar Manufacturers' Association and the locals of the
International Cigarmakers' Union, negotiations begin for a new
contract. The employers' labor relations committee meets with a
group selected from the Joint Advisory Board of the cigar unions
by the Board's president. The negotiations are assisted by ser-
vices of local attorneys for the Manufacturers' Association and
the International Cigarmakers' Union. At the'present time Mr.
Ray C. Brown is attorney for the Manufacturersl Association, while
Mr. 0. C. Maxwell and Mr. L. W. Cobbey represent the unions. As
soon as a contract is signed by both groups of representatives,
it is submitted to the Manufacturers' Association and to a mass
meeting of the cigar unions for a vote of approval. If a majority
of each group approves, the new contract goes into effect for the
period stipulated.


(e) Provisions for arbitration.

If a dispute cannot be composed through negotiations o lthe
Joint Advisory Boards of employers and employees, the next- Mort
is settlement under the Constitution of the International C r-
makers Union. As a matter of practice questions of collect re
bargaining which remain unsettled for a stated period of ti are
to be handled according to provisions of the union constitute n.
Thus, they may be submitted to arbitration by a disinterest third
party. The United States Department of Labor through its C il-
iation Service has been called on in several instances to s re as
arbitrator on questions pertaining to the cigar industry.

7 Recent Developments in Employer-Bmployee Relations. A

Following the adoption of the National Recovery Act in 33
the right of collective bargaining was granted organized la un-
der provisions of Section 7-a. This prompted the Internatio
Cigarmakers' Union to send Mr. R. E. Van Horn to Tampa to c er
with manufacturers on the question of entering a voluntary Ide
agreement with their organization.
After a lengthy period of discussion, the contract of em-
ber, 1933 was entered into. When the cigar manufacturers' a e
under NRA became effective the workers petitioned the manuft
turers for a 20 per cent increase in wages for Spanish hand
an increase of 30 per cent for mold made cigars. In the sa pe-
tition was included a demand that the nivelating committee re-
stored, together with the rules and regulations governing
group of equalization comnitteemen. The nivelating system
been discontinued in 1930, as the scale of prices proved to- igid
and consequently the manufacturers were unable to meet comp' tion
in offering new sizes and shapes. Heavy pressure from the Lon
brought the nivelating concession from the manufacturers.
From the recognition of the union in 1933 until the pr nt
day there have evolved consistent complaints from the emplo s
that union regulations did not permit them to introduce rea
new sizes and shapes or to experiment with competitive meth
In 1935 this problem was advanced by the manufacturers a
subject for arbitration. The manufacturers appointed Mr. E que
Pendas as their member of a three man arbitration board whi the
workers* selection was Mr. Jose Martinez. These two were t e-
lect a local impartial chairman. When an agreement had not en
reached as to the third member, despite some eight weeks of ner-
ences, the United States Department of Labor was asked to y
such a chairman. Mr. Francis J. Haas was sent in that capa y.
His decision of October, 1935 permitted the team work with er-
man bunch machines and suction tables to be used in Tampa, re-
quired wages under the competitive method to be the same as e
hand rates established in the Cartabon for 1934. Naturally, is
offered small inducement to the employers to install the near s-
tan, and little effort was made to do so at that time.
In 1936, the three-year contract between the local uni
and employers terminated. Prior to its formal ending disloy ac-
tivities were discovered among sixteen members of the Inter ional
Union by Mr. R. E. Van Horn, president of the International Car-
makers' Union. In order to prevent their shifting to the C. .,
a court injunction was obtained ordering them to cease their. -
tivities. The disloyal members were suspended. Five of the
leaders were denied the right to hold offices for a year whii
eleven were later restored to unqualified membership.
After this, Mr. Van Horn asked the manufacturers for mo
control over union members. As a means to that end, he requted
that "preferential union employment" be written into the ne wage
contract. Members of the Cigar Manufacturers' Association ylIded
t, this persuasion. Later, "preferential union employment"
ii erpreted by the Department of Labor as meaning virtually &



closed shop. Thus in the 1938 contract, a clause formally holding
the closed shop existent in Tampa was the final step in a series
towards ending the open shop.
The competitive system of cigar manufacture, which has been
explained in previous sections of this Report,,has continued to
claim a large share of recent bargaining controversies between lo-
cal unions and employers. In the formulation ef a wage contract
in July, 1937, the question of competitive systems was aain ad-
vanced for an arbitration as provided by the Ilternational Union
Constitution. The question was whether competitive methods should
be adopted in the manufacture of clear Havana and shade mold ci-
gars similar to methods currently employed in northern factories,
and the sizes and prices to be paid if the competitive system
were introduced. Mr. Carl R. Sceddler, United-States Department
of Labor representative, was sent to Tampa in january, 1938, to
serve in the arbitration. In the preliminary hearings it was
clearly established from the testimony of the workers and employ-
ers that the competitive system should be permitted to be used in
Tampa as in the north, that when using this system employers should
furnish the same quality materials as northern factories, and that
Tampa manufacturers should accept the same elate of workmanship as
northern plants. In the decision of Arbitratoe Schedler, the
prices and sizes of cigars under the competitive method were es-
tablished, being the same as those used in the northern competi-
tive area. The wide differential between shade and Havana mold
prices was permitted to remain as provided for in the existing
labor contract.
Following the Schedler Award, granting the right of Tampa
cigar companies to use the competitive system, several manufac-
turers attempted to install it in their plants As they failed to
receive .the cooperation of their workers with the new system,
these attempts were abandoned. N'
In applying the rights granted under the Arbitration award
of 1938 several questions of interpretation hale appeared. What
constitutes competitive methods as used in the north? How should
standards of tobacco quality be drawn so as to permit coaparaise
of tobacco used in Tampa with that in the north
The labor contract of August 25, 1959, effective through
June 30, 1941, between the unions and Cigar Matifacturers' Asso-
ciation recognizes the right of any manufacturer "to introduce
and use any method or methods, system or systems, or parts there-
of, pertaining to any department of the factory." This provision
further requires that a description of the newssystem of production
that is desired shall be filed with the Joint advisoryy Board of
the unions and with the International Cigarmakrs' president or
his representative.. Thereupon, the Joint Advisory Board and. the
labor committee of the Cigar Association shall meet for the estab-
lishment of a price or wage scale on the new system. If the nego-
tiating parties are unable to agree within five working days frm
the date of filing a description of the new system or if eithe-
side refuses to negotiate further, a wage sca4e shall be estab-
lished by an arbitrator to be forth-with.appoited by the Conoil-
iation Division of the United States Departent of Labor."
The contract states that the unions and te employers have
not yet reached an agreement on the wage soaleifor ompetitis
systems of manufacturing cigars as now used. Provision is mAd
that this dispute shall be composed-IE the manner already deasribe
namely, through negotiation within a limited time of five working
days after which arbitration shall be resorted to.

Prt V


1 Effect of the Digar Industry on the Growth of Tampa.

The coming of cigar manufacture in 1866 to the village
Tampa meant the development of a growing town from which w
emerge a modern city
Before the first oigar factory was established, the e
population of Tampa was 2,000 persons. Most of the people
gaged in trading, railroad construction and transportation,
wise and foreign shipping. Stimulus from a new industry waf
felt. By 1889 the local population had increased to over 19
In a span of several years leading up to this date the annut
ume of cigar production had grown to 20,000,000.
Through the ensuing two decades, the cigar industry pr
the nucleus for many Important developments connected with
prosperous growth of Tampa.
That the cigar industry was a decisive factor in Tampa
growth is indicated in the 1910 report of a United States
ment commission studying Immigration and its relation to th,
industry.. A statement from the report follows:
"The industry has been instrumental in adding large nu
to the population of the city and has been by far its great
distributor of wealth. The value of cigars manufactured inn
year 1908 was $17,175,000. 10,500 employees received an av
weekly payroll of $200,000 or 75 per cent of the total payr
of the city." (1)
The prosperity of the Tampa cigar industry in 1910 was:
cent to cause an organizer for the International Cigar Wor
Union to report that seventy-five manufacturers were operate
locally with 6,000 members of the union.
"Tampa for the past five weeks has averaged shipment o
a million a day. One week the shipment was 7,120,000 cigars
The United States Immigration Commission's study of ci
ployees in the Tampa area provides. interesting data as to
bar of workers employed in 1910. According to this source
were employed in the cigar factories of Tampa in this year
of 9,858 workers, of whom 8,065 were men and 1,795 women.
growth in the number of cigar workers in Tampa continued co
ly up to the peak' year of cigar production in 1929.
Table 45 shows the growth of population in Tampa during
period 1900 to 1845, compared with the growth in cigar prod
for the same years. The total cigar production for 1900 wa
147,848,000 compared with a total of 311,345,000 in 1935.
ulation of Tampa was 15,859 in 1900 and 100,151 in 1935. S
1900 cigar.production has doubled, while the population of
has expanded more than six-fold. The peak year representing
record cigar production in the history of Tampa was in 1929
504,753,000 cigars were made. The population has remained
mately stable since 199 while production in the cigar ind
declined. Bbth conditions were partly the result of the bu
depression, and future years may see a change in this trend
decline in cigar production in Tampa since 1929 is part of
ral tendeiAeyas production in the entire industry has been
ing since 1920. In the preceding period of growth, 1886 -
the cigar industry of Tampa had been prosperous. Cigars pr<

1. Report of Imnigration Commission, 1911. Published by
United States Government Printing Office, Washington.
2. CIgazmkera' Official Journal, January 15, 1910, WashinL


re en-







P em-


I pop-
ry has



in Tampa were noted throughout the United State fas quality cigas.
The period of decline, 199 1959, has been ma*ed also by a sift
to cheaper cigars which helped to affect advers4y the earnings of
the industry. A full discussion of this shift 1 iproduction is
presented in Part VI of this Report.
Despite the decline and unsatisfactory conditions since 1969
the cigar industry still remains the major aeon ic activity 1~\
Tampa. However, it is no longer"the only import nt Indstry -i
the city. Since 1920 there has been a growth o other types of
business activity at Tampa, wh h has tended to Lessen the depaen
dence on cigar manufacture. In 1930 the United states Census
showed 26 per cent of the workers of Tampa engaged in cigar fac-
tories, as compared with 56.2 per cent in 1910.
2 Importation of TObacco From Cuba.
A large quantity of Cuban tobacco is impor ed annually via
the.Peninsular and Occidental steamship line fr n Havana to Port
Tampa for use 'of the Tampa cigar industry.
Table 46 shows the total amounts of tobacco imported into t3s
United States from Cuba. In the peak year of te Tampa cigar as.
try, 1929, a total of-6,609,000 pounds was impo ted through Ta~e,
This represented 27 per cent of the total unmanfactured Cuban to-
bacco coming into the United States. In 1938 a'total of ,754,000
pounds of Cuban tobacco was received at Tampa, ihich was 29 per
cent of the total imported Cuban'tobacco.
The appraised value of tobacco imported frn Cuba as reportN
by the Tampa Office of the United States Customt shows a decllnw
from )5,954,000 in 1929 to a low point of$l,92,000 in 1933. Slot
then it has increased to $2,720,000 in 1938. Te average value pe
pound reached a high of $0.90 in 1929 after whih there was a deG
cline to a value of $0.57 per pound in 1955. T*e present value Ver
pound is $0.68.
Prom the early history of foreign trade in Tampa tobacco has
been the most important commodity import. In 534, tobacco made
up 17 per cent of the imports of all the ports In hPorida, and
practically all of thia commodity came in through Tampa. In 1990,
1910, 1900 and 1890 the value of tobacco import at Tampa has re-
mained several times the value of the import nt in importance.
Table 47 shows the distribution of tobacco imported thbroa
Tampa into the classifications used by customs ppraisers at the
United States Customs House. "Pull wrapper" e 'rs to bales of
tobacco containing over 55 per cent wrapper lerea while peroent-
age wrapper" is the portion of wrapper which i' present in a bale
of tobacco containing less than 55 per cent Wr per leaves. "rn-
stemmed filler" refers to tobacco suitable fon 1akin o filled
cigars and from which stems have not been remod or stripped '
If the stems had been removed in Cuba, the tobmoco would be eas-
sified as stemmed filler". *Sorap filler'" onaiets of leave
not suitable for making long filler cigars. PFt of the scrap ay
consist of tobacco purchased for short filler dgars or of euttiag
obtained as a by-product in the manufacture of gIigh grade ciga
According to an analysis of this table, the to quanttities f
wrapper imports have increased from :.2 per cet of the total to-
bacco imports in 1929 to 3.8 per cent in 1938.. This inoreaseba I
the proportion of wrapper imports to filler receipts is parallled
by a reduction in the total number of cigars oie in the Tamp*
district and an increasing proportion of production in the lo6ew
class of -cigars. On the cheaper cigars it has ,been necessary to
use lower grade wrappers or a larger, proportioA of each bale as
wrapper. An analysis of these production trends is contained i.
other sections of this Report.
A provision of the customs act relating t@ the duties on '.a-
ported tobacco is that if as much as 35 per celt of the tobaeoo -in
any bale is classified as wrapper tobacoo,the e ole bale is aasiak
at the rate for wrapper tobacco. As was stated'in Part II, a balb
of tobacco weighs about eighty pounds. Inasmuch as the import


rate for wrapped tebaem is $1.80 p62 nor overr ftur t aa
high as th afto hW filler tobaeco, 0.aB, this appears t a
drastic proviTion in the law. thu, i 40 per oent of a
were classified a wrapped tobaeoo by the appralaeer th t
er would have to pay 100 per eant pper duty the wle
This has resulted Ia 'm e *XOurve duties being paid, and
been the 8o00M Of Muir ootlaints.
The menufaetOrae of Tampe have objected to the inc
percentage of leave classified as wappers. They contend
the leaves used a wappere fop 5 eent eigars are not al
wrappers and that ocurmoial wrapper used only in the
of higher grade &1ars abou2 be olaosIfied as wrapper tob
United Stata nesi to offeoials at Tapg point out in rep
this objection that pragraph 608 of the Triff Act of 1
fines the toem wfappei tobacco" as follow:

"Tho te 'wrpper tobacco' am used in this title at
quality o leaf tobacco *ioh has the rquisite color, ,
and burn, 2ad 1t of 'uftcieont lsie for eigar wrapped. 1a

Other problem met with In oomection with claeeafioa
of Cuban toboo have to do with the methods of appraisal
assessment of duties ad the tendency of this olac ifiati
vary widely as between Mndividual o t inspectors. When p-
per and filler leaves ae mixed in shient, a custcBs a
needs to la eot all the leaves in a bale for an accurate is-
al. Aoeally, he has tiM to examine only a tow of the 16
leaves the bale eontalna. OAeo have been frnd of vlarat In
the opinion of eoetoms appeaaer* ast tthe percentage of
pers found in a bale. Ia one instance, ftao different ap
found 35 per ent, 60 per oont, 75 per dent and 96 per event
the proportion of wrapper in the uamu bale. Under the adi
tration of the extating law, ranufaet ndve mknow in ad
what their duties will be, as that depenas on the ldi
judgment of the a raitser in the custom werviet as to the
centage of wrapp ad iller present Because the wrapper
subject t6 over four tlms. the duty of filer, the fianncla
den of aiselaloetl latioa is costly.
Tables 48 adA 49 show the general tariff rate on toba
imports and the rates on Cuban tobaooo as modified by treat
and trade agreemmti. Since 1906 Cuban tradewith the Unit
States lta been object to a preferential rate 90 per cent
than imoprts frc other foreign countries. Since 1955,
tariff redotiena have coar as a result of the Trade Age
Program. 8uah duty reductions are exemplified by the Cuban
Agreement In effect fru Septembe 1954 to Marh, 1936 and
Netherlands t ade Agreement of Z .M As an apication of
unconditional most-favored-nation policy now being followed
the Unitedb tate, the reductions granted the Nettherlands
matra aad Jva wrapper were automatioall extended to inl
Cuban wrapper tobacco. An can be seen from Table 49, the t
duties p pount on tobacco Im~aorted from Cuba are: stem
wrapped, .o*, f united wrapper, l1.90, steed filler, ,
unsteomd fiule and secap, 90.B.

3 Advantages of Vampa Por Cigar MNanufacturing.
The ftwge of tebspeature ad humidity rat Tampa is quite
lar to that at May lest and Havana. In oider to work toba 6t-
isfactorily the average temperature must not be too low or high

Act raph 808. United States Gove


Extremes of high and low humidity are equally u desirable. In the
Tampa district climatic conditions are such thaair-conditioning
of hand factories is unnecessary. In northern ldtories the air-
conditioning is essential, requiring an added vestment and ex-
penditure. Sufficient experimentation with air-onditioning in
Tampa has not been made to provide a more detailed analysis. How-
ever, it is contended by many manufacturers that air-conditioning
will be needed in Tampa for machine production if mechanization
proceeds far. Because of Tampa's..suitable climate some northern ci-
gar companies have their Ouban tobacco shipped to this city instead
of New York, and stored pending the need for it,
A representative of the United States weather bureau reports:
"At Tampa the average temperature range fri the coldest to
the warmest month is only 20 degrees whereas tho range is 44 de-
grees at Boston, 48 degrees at Chicago and 60 degrees at St.

A combination of railroads, 'truck lines, steamehip lines and
airlines makes economical and rapid transportation available from
Tampa to all parts of North America and the Carbbean. The un-
manufactured tobacco can be brought in easily fom Cuba and the
finished cigars distributed throughout the Unitqd States. From
the standpoint of transportation facilities, the cigar industry
is more strategically located for manufacture aqd distribution
at Tampa than at Havana or Key West.
Tampa has an advantage in a cost of living4 which is much.
lower than in northern producing centers. BecaUse of this, wages
in Tampa have a greater purchasing power than iS the north. Money
wages in Tampa might be lower than in the north,but real wages are
The willingness of Cuban cigarmakers to t rsfeor to Tampa-fron
Cuba and Key West was necessary for the establilbment of the cigar
industry at the former place. Emigration was e courage by the
construction of attractive communities, first at Ybor City and
later in West Tampa., Attempts were made to start a third cigar
production center at Port Tampa, but these failed chiefly because
of lack of clubs and amusement facilities, which have made up the
social life of the Latin workers. There has been an ample supply
of cigarmakers in Tampa ever since the early development of the
With the passage of the Morrison Act of 1843, a differential
for the importation of unmanufactured tobacco oter the importation
of an equal weight of finished cigars was made, o as to favor the
American manufacture of Havana cigars. This differential has
continued to encourage the importation of unmantfactured tobacco
and to discourage the importation of cigars. The rates of the
tariff duties on unmanufactured tobacco have been given in this
section of the Report.
The citizens of Tampa invested in the cigar industry as a
means of speeding up the economic development of the city. Subsi-
dies of cash, land and buildings were offered to plants which came
to Tampa. Citizens of Tampa, business men, land and development
companies and other interested groups helped to furnish the capital
for the companies and get them started. For their part the cigar
manufacturers contracted to produce a given quantity of cigars and
employ a stipulated number of persons. This agreement was designed
.to insure the maintenance of a payroll which wokid strengthen
purchasing power in the city.
For example, in the case of locating M. Stachelberg and Com-
pany in Tampa in 1902, the factory site was donated and the cit-
izens subscribed to $10,000 in capital .stock. -This firm built a

1. Comment on the Climate of Tampa by W. W. Talbott, United
States Weather Bureau Office, Tampa, Florida Chamber of Commerce
Bulletin, 1939.


factory ooIst~glla u400.O d.1 to 1M y ajsO Iefl
Today tbe sMue e aaang he ooirum 2iryet Ua
maintenance of this lallty as a p snmmti ci. r center. in-
ment of euab a gmtito wil rquien the wmt o:aerel at to
three faotoes oesh a aeoaleoaote apad ciil in their .
The social : oblm irs oo4sa ed with tad* -union po the
larger portion of Tampals tr7 inw a a elosmd p
agreement with the muiMa.e s ia tse of atso other a
center In t ihe ite Statse.. Znsofar as mpa e un.
cise a great intlWa oe 1 Re0 O rate they hqbd a weapo
can be uaed to itajuq I a a aer to tL to the tari.
unions are to help build a prosperoe oBX industry at. It
is essential that thbe leean te. priuiople of prices and
behavior in the market, and llkewiae, th relation of -ges
The eoanoio problem dls with taatile. Tobaco an ies
have always boai a heay shae la pr6vIdga rveme ts o
mental opeatlos. As iag as the elar Iabtey faes0 de
demand there l Adaaer of allowlag the tax bIrda to o
heavy. At ths present time all divisions o goranarat,
state and looal, arn aetrohng frantically for naw revtesu
If the tax 1t ianoraeue4 s oan gm it will tend to hasten
sent trend tomd ebrishdna of pr o d etion.
The civil problem ocmerna t e attitude of the people Taa-
pa toward th w.o*gr pastry. h en the e PeOlof Tampa
intelligent understanding of the problem of the oigar s id
a high degree of coopertio n a assising it in changing n-
al methods an modernising, the industral progre of t -he
ity will be gaty lid3e The ,advanomat of thee. objeo is
a step towrd a ome prosperou.p igar laustry. W ile taln-
ment cannot be rapid, they oan be aoom pla ed gradually.

4 The Problie of employment in the Cigar anduatry o .
The position of the cigar industry as the chief aseoe pri-
mary purchasing power la in T a maee nnsmployment in this try
of major impertamee to the city. Restration of employment di.-
placed cigar worir a eootitutes the logical first step to
tion of une*ployinat in other channels. Prerequalte toa-
toration is an increase in activity in Tampa cigar factor If
such a re-absorptlon of old eqployees in the cigar field is -
sible, there will be a oat pressing need for aw ladustri
Tampa to alleviSla the situation. here has be.n a gemaine
for some years tr new ndustries in Tampa to give esployi
the surplus eigat workers of the city.
A review of the present extent of uneaploymnt in T7 11
be made. mmplaopmet among cigar workers has been a. seo
problem in. Tapa since 190, when 1,747 wee reported as un y-
ed by the cenasu report, wih the actual total probably
In the census report for 1930, 11 748 workers were listed a -
fully employed in the cigar inGna which Ibrepseaspted 38 cent
of the gainfully aloj persona in tamp a. his 1930 ceas -
port stated that1 per oent p the unemployment at Tampa a
date was in the oigar indmtry. This is in oontraat with act
that only 25 paer ent of eplmt In Tamp at that time
this industry, and seems to date that inployment
workers was coneierably higber than in the other inustrie
A conservative estimate, based on reported figures.
major Tampa& igar factories, sho: the present nber of ga
employed cigar workers in T!mpa to be 7500. This t a an
of 4,248 from the 11 748 reported as being seloyed in the
plants in 1950. It a estimated that there are in Tmp at .
present tle aiproxtmate3l 4,000 cigar woke not elploed the
cigar plants, although a part of these are an relief.


number to those employed in the plants, there a1r approximately
11,500 cigar workers in Tampa at the present timb.
Since 1930 decline in demand for cigars and other causes have
thus effected displacement of over 4,000 cigar a)rkers in the Tam,
p industry. These persona have shifted to some other industry or
have been dropped from the payrolls of cigar fifis to become part
of the unemployed. A number of these persons a3L older people who
have spent a good part of their lives in oigana ning, but many
represent young men and women who have not been bdforbed by the
cigar industry. Of the two groups the older peoBons are worse oft,
as transfer to new occupations is easier for yog persons than
older ones. Some of these older cigarmakers haw started small
one-man shops in their homes or in cheap quarters for making and
selling cigars. These are known as buckeyess." There are about
seventy of them in Tampa.
The Tampa cigarmakers' unions have followed a policy of spread
ing the work, in an attempt to lessen the effects of unemployment
in the cigar industry. As soon as it is necessary for a cigar mani
facturing plant to reduce its production, instead of discharging
workers, the plant operates a smaller number ofdays with its full
force. This is perhaps justifiable as a temporary measure, but
should not be considered as a permanent policy. It is unfair to
both workers and employers, in reducing the wagds of the former,
and adding to the overhead costs of the latter.
Temporary agencies organized to deal with unemployment must
.be differentiated from permanent measures taken to abolish it.
Many Federal agencies have developed which have been considered
usually as temporary means of handling unemployment. Before a
review of the work being done by these agencies is made, it is
desirable to point out that the ultimate solution of cigar unem-
ployment will necessarily follow one or both ofitwo channels. One
possibility is the Ievival of demand for cigar workers through a
general rehabilitation of the cigar industry. Another means to-
ward the same end is the introduction of new industries which will
offer opportunities to displaced workers.
A Federal agency designed to assist in reducing unemployment
of young people between the ages of eighteen and twenty-five is
the National Youth Administration. Although started as a tempo-
rary expedient for meeting problems of unemployed young people,
it has proved of sufficient merit to be extended continuously
since 1953. In Tampa, the NYA seeks to assist'foung people who
are out of public school and unemployed toward Selection of a vo-
cation and acquisition of the necessary preliminary training. At
its headquarters in Tampa, 100 E. LaFayette Street, the UTA main-
tains vocational training in shopcrafts and hom* economics, and
offers continuation classes in English, arithmetic, geography,
penmanship, and civics, for persons needing training in these sub-
jects. In addition, apprenticeships are provided in many practi-
cal fields with courses in library, office, hospital and commer-
cial training, as well as in carpentry, brick aAd stone work, and
other types of construction training.
Another NYA project for Hillsborough County is a school of
mechanical instruction installed at the old Su pher Springs CO.C.C
Camp. It is designed to care for 100 Florida boys whose parents
are on relief. Instruction is given in woodwork, sheet metal work,
auto mechanics, radio and other courses.
Another division of the National Youth Ad inistration in Tam-
pa is the college aid to young people attending the University of
Tampa, the University of Florida and other state schools.. In
1938-39 about 1,000 young people in Florida benefitted from this
program of encouraging worthy students to continue their general
education. In addition, about 3,500 high school students were
assisted during the past year.
Other methods for aiding unemployed young people include the
provision of work scholarships at the University of Tampa and con-
tinuation classes at the Henry W. Brewster Vocational Schools


part of the Tampa Oity Schools. In the rewster School day
evening classes ae maintained throughout most of the year
printing, ntma Ane shop practice, radio, 10ectricity, sheet
layout and drafting, mill-cabinet work and other branches o op
work. The school also has a commercial division in which -
ous courses are offered ,n bookkeeping, shorthand, typewrlt
office practice and other practical fields*
The Works Progress Adminlstration is the Federal ageno -
signed to assist unemployed older'workes in finding a t
means of inaom or in shifting to new fields of deployment i-
cently in Hillabowioe County, the WPA ba spent 00,000 p
month or O0,000,000 anmnally in providing emorgeny el
on street i provemets, building oonstraction and other te
projects. In addition to the WPA expeditures, the district 1-
fare board is adaiatsteaing over 00,000 pew year while t -
ty relief Uependltrem a r about r 0,000 per year. These
bring the eatmated animal eoet of relief In Tampa to 7,
At least half of this expense is necessitated by cigar u
The possibility of the cigar industry of Tampa taking
to modernize the factories and introduce improved methods by
competitors is the north is discussed in other sections of
Report. If asoo atl, this would tend to alleviate soe o
existing unemloyent. after a period of time sufficient f.
plants to poft by the modernization. however, it is net
lived that the Tap oigar eanies can absorb all the un
played cigar workea in p for scae yewas.
A sqplement to sueh effort would eomsiat of introduce
industrial to Tampa which ooald absorb tho balance of unep
Since most of the wamployed aiga worked ar Latlp by e ion,
a special perblm is' faced of obtaining industries which o be
adaptable te the qualities of the latin workers, particular
handicraftan. A Tampa business man has recently become
ested in obtaining a nvber of ladies' garment plants for T
He has based his efforts in this connection on the observat
that Latin ,omn have been able to shift froam eigarmaking to nt
manufacture nl an old oigar factory building in West Ta-,pa.
order to make this transfer of employment to textiles, only
to forty-five days of preliminary training were necessary. a
the opinion of this business man that other garment factorie
might be induced to locate in Tampa.
It is believed that a prosperous garment-ak indust t
be established la the city, if these initial efforts are u -
ful. Latin worked are particularly adaptable to this type ork,
and the uneplrepmnt omaog thamL igt be reduced substantial y
an expansion of this industry in Tapa. Another possibility
Tampa would seem to be the canning industry, with plants usi
the fruits and vegetables produced in central Florida. Handa
crafts, which would enable the latin workers to use their
and not require mauh manual strength, might be successfully ted
In Tampa if the necessary steps would be taken to bring the e.
In Part VII of this Report a suggestion is offered that
3uban Quarter be constructed in Ybor City. This could be de
bo represent the architecture, mode of living, dress, and c
)f a Cuban city. Aroupd this center of attraction for tour a
shopping and entertainment district could be developed. If ees-
'ul, this plan Aght give employment to many Latins, and ben the
Fhole City of Tapa, by bringing in additional tourists.
This problem.of Tampa's unemployed, of whom so many are
workers, is civic as well as industrial. The citizens of
lave a responsibility in this connection, as well as the ci
theirr industries. Efforts to help the situation by encourag the
:igar companies to modernize theiir plants, providing facilit for
;he training of unemployed workers, and bringing new industry to
.ampa, are measures that should receive the attention and o
ition of every Tampa citizen.


Part VI

1 Scope of the Investigation
In this survey the complete records of the nineteen el com-
panies of Tampa which are embers of the Tampa Cigar Nanufa era'
Association, called in the Report the hand plants, were ed.
These companies are referred to as hand plants, although ae of
them have in recent years introduced in their plants an sei-
machine processes for part of their Clas A production. -
tally, they represent the old hand cigar industry of Tampa. in-
vestigation was centered largely in the operation of these- ts,
as they are having uore difficulties than the other plants the
present time. The operations of the HBaatampa Cigar Can
inspected, and data seared for a period of years oonerni e.
The Havatampe Cigar COany is efficiently operated, and ie a
much better economic position than the hand plants of Tam ,o
information was gathered relative to the small independent
companies of Taump.
For the purpose of ascertaining the results of opetati of
the Tampa hand plants, an inspection and analysis of their
was made for each year back to the middle of the decade of
1920's. The Tamup hand oigar industry was prosperous dur is
decade, and it wua felt that a comparison of the results of a.
period with later operations might be advantageous. Hence,
investigation started with the year 196 and included each
through 1938. meo data were gathered for the first six mO
of 1939, but complete data concerning operations were not a -
able for this period.
All of the records of ea.h hand cigar company were p ed.
These included production records and internal revenue boo oat
records of all kinds, payroll books, sales records, price 11 ,
etc. It likewise included complete financial records of ea m-
pany. The annual certified statements of auditors were mad il-
able for each company back to 1925. These annual auditors' te-
ments were carefully analyzed, to determine the real conditi of
the cigar companies.
The records of some of the hand cigar plants of Tampa not
kept as efficiently as they should be. Difficulty was enoo ed
in getting detailed cost and expense figures in some plants, -
ticularly for past years. Payroll and production records t
as complete as they should be in some plants. There is room r
considerable- improvement in the accounting records of many o
It is believed that the data gathered from the Tampa pl a
are quite reliable, and, considering the possibility of a
margin of error, the figures presented in this Report are co ot.
It is felt that this part of the survey included a sufficient
thorough check on the operations of the cigar companies of T
to permit an authentic appraisal of these, and to justify ce in
recommendations as to the solution of some of the problems.
In conformity with ethical practice, no information con -
ing the operations of any individual plant, where it sl poas e
to identify the plant, will be given. Composite totals, inc ing
operating results from all the plants, or groups of them,
This part of the Report will deal largely with statistic
tables showing results of various operations of the plants,
an analysis of each. General information concerning the T
companies and their problems has been given in preceding sec ,
so will not be included in this one.


A list of the nineteen Tampa hand cigar pladhs, which are
members of the Tampa Cigar Manufacturers' Asso~ition, is given
in Table 60, where the companies are shown olass lled aboording
to types of tobacco used.

2 The Cigar Industry of Florida.
In this survey of the Tampa cigar industry it was considered
advisable to investigate tbw industry in the entire state, to show
the position of Tampa relative to that of the State of Florida.
Almost all of the important cigar plants in Florida, outside of
Tampa, are machine plants* Of these, John H. Swisher and Son, Inc.,
in Jacksonville, is the outstanding plant in the state. Because of
the importance of this plant in the output of the national cigar
industry, it will be -deewlbed briefly.
The Swisher Company moved from Newark, Ohio to Jacksonville in
1923, being in this year a very small firm. At this time cigar ma-
chines were just beginning to be operated in a practical manner.
The company acquired machines for its operations and centered its
production oh a 5 cent cigar, the King Edward. Sales of this oi-
gar increased rapidly, the company's production being around
100,000,00 annually, from 1926 to 1933. Cigar consumptionn dropped
sharply in the depression and the selling price of the King Bdward
cigar was reduced to 2 for 6 cents. Sales then picked up so rapid-
ly that new machines and enlarged factory space.#ere required, and
the working force increased to two shifts. In 1355 production ex-
ceeded that of 1932 by 40 per cent, while in 1954 there was a 67 pm
cent gain over 1955, with a production exceeding one million cigars
daily. This production in a plant area of 80,000 square feet made
the company the most productive cigar plant in the world. This was
followed by a gain of 29 per cent in 1955, 19 pe .cent in 1936, 15
per cent in 1957, and 15 per cent in 1958. A 600,000 addition to
the plant was required in 1955 and a $400,000 addition in 1939, to
take care of the expanding business. This Inclided the Oonstruc-
tion of a large processing plant at Quincy to p ipare the West Plor.
ida tobacco. When the factory addition at Jacksonville is complet-
ed, It is planned to produce 750,000,000 cigars a year.
Sales of the Swisher cigars are made throughout the entire
United States, and in addition the company enjoys important for-
eign business. A liberal policy of advertising is followed, most
of which is of the outdoor type.
At the present time the Swisher Company ha# the largest pro-
duction of any cigar plant in the world, this being about two mil-
lion cigars daily. It employs 2,500 workers, of whom 2,200 are
women, including all machine operators. The annual payroll exceeds
$2,000,000, amounting to nearly .40,000 per week. The operations
are carried on entirely by machines,the two-operator,short filler
machines being used. There are 286 bf these in the plant, which
number will be increased with the Aew plant addition. The tobacco
used is mostly domestic, with same from Puerto Pico and the Philip
pines. Two eight-hour shifts are used in the plnt, from 7:00 A.M.
to 5:50 P.M. and from 4:00 P.M. to 12:50 A.M. The plant operation
other than cigar making are highly mechanized, uuch operations as
stripping, blending and mixing of tobacco, cell)phaning, banding,
stamping, etc., all being done by machines. .Coiveyors carry the
*tobacco from the mixing room in the basement to the storage room
on the third floor, from whence it is sent thrdtgh chutes to the
cigar machines on the second floor. The operations of the plant
are marked by efficiency in all departments. A low piece-rate is
paid the machine operators for cigars produced, which helps the
company secure a low cost of production, but because of the gene-
ral efficiency of the machines and the plant, tie operators make
satisfactory wages. The company has done a great deal in the
field of welfare work for its employees, and they appear to be


satisfied*. Th* plant is non-anion. -
Smaller aeksonville plants inelade GOoae-le and
pany, Inc., oread by the Cuesta-Ra ain Cpeaa of Tipa, a
H. s. white oCgar Company, Ino. The oaosales and Banches
started in Jaksonville in 1901 and for ei years was a
plant. It now 9ues autmlatio meMbinet and th.e nMh na
and hand-rolled process. The H, S. blit Cpay en-
tirely by the automatic machine. The amot im r tantf the
plants is the Higdon Cigar Company, I. which es et dest
tobacco in its operations. Several of the Miami and Key I -
plants 1re of aomr importance.
Because of the large production of the Swisher O aPs, ek-
sonville ranks first among the cities of Plorida in total r
of cigars produced. Tampa, on account of the higher lasse
cigars produced, pays ore revenue, and produces the send
eat number of egars. Quincy ranks next in cigar prodaoti
which is chiefly with tobacco grown in Vest Florida. Miami
next among the cigar producing centers of Plorida, followed oey
West. This last named city, once the national leader in the -
duction of Havana cigars, now ranks as last among the p
centers of the state.
In Table 51 there is shown the total number of establish t
manufacturing cigars, cigarettes, and other tobacco products
Florida from 1910 1938. -rom this table it oan be seen t the
total number of tobacco manufacturing plants in Florida has
creased from 385 to 168, between 1915 and 1938. Of the total
ber, almost all are sigar companies, with a very few making
ettes. The number of plants producing miscellaneous tobaco
ucts in Florda has decreased substantially since 1916, jhil e
cigarette plant were never large in number or important.
Table -i shows the location of cigar companies in Flor in
1939. Ao rDding to this table, there are ninety oe-panies
Tampa, eighteenn 1Key West, twelve in Jaksaonville, ten in I,
and four in Quiney, with a smaller number in other cities in e
state. Some of the cigar companies listed are very small sm
latively unimportant.
Table 56'gives statistics for the larger cigar oopanie
Florida, as gathered by the Census Bureau, the figures s
the changes in each census year from 1890 1927. As a
of small plants are not included in these census data, t
shown for somw items are not mpeh larger than the Tapa plan
alone. From this table it is seen that there were more oi
plants in Florida in 1919 than at any other period, 820 as o
with fifty-aoe 4n 19M7. She largest eamoat of wage1 was paid
these plants in 1987, this being 913,385,000, as compared wt
$6,861,000 paid in 1957. he number of wage earners as
in 1909, 1919, and 1999, with over 12,000 workers, dropping
9,966 in 1937. The greatest cost of materials was in 1995
1925. be 1937 cost of material s not very mcah below th
figures., fbe value of the prodget was greatest in 1929, wi
$41,087,000, as compared with $4,972,000 in 1937. The val
added by manufaturing was likewise greatest in 1929, being
twice as great as in 1937. This table shows that the value
cigars produced in Florida per wage eane and per unit of
rial cost has dropped considerably in recent years. In 1985
value of product per wagS earner was 9,477 as compared with
$2,506 in 1937. In 195- the value of product per whit of Ma
rial cost was 9.41 as eempared with j.97 in 1937.
The total sales of cigars In the State of Florida, div
into the five revenue classes, and the percentage of each Of ae
to the total, from 1900-938, are shown In Tables 54 aad B5.
these tables it is seen that the total oigars made in Plaer
creased from 513,010,000 in 190D to 83~,941,000 in 19S8.
creased production of this total in recent years has been
largely by the increase in machine-made, Class A cigars
centage of Class A cigars to the total production in Flordda
increased from 6 per cent in 1990 to 47 per cent in 1930,


per cent in 1938, while the higher classes of cigars have declined
considerably, the decline in Class C being from 64 per cent In
1920 to 38 per cent in 1950, and 12 per cent in 1938.

3 The Cigar Industry of the Tampa District.
Statistics for the Internal Revenue District of Tampa in-
clude all the cgar companies, both machine and hand, in the city,
and in addition cigar plants in cities near Tampa. Figures for
the Tampa district thus include a number of plants other than the
nineteen hand plants of Tampa.
Tables 56 and 57 show the cigars sold in the Tampa district
each year from 1920*1938, divided into classes, with the percent-
age of each class to the total in each year. The total cigars
sold in the district increased from 227,791,000 in 1920 to
504,753,000 in 1929, from which point they declined to 374,627,000
in 1938. Most of the increase was accounted for by the Class A
cigars, which showed a very great increase, while pll of the high-
er classes decreased. The percentage of the total comprised by
the Class A cigars increased from 5 per cent in 1920 to 36 per
cent in 1930 and 65 per cent in 1938. At the same time Class C
cigars declined from 61 per cent in 1920 to 45 per cent in 1930
and 26 per cent in 1938, while the other higher classes declined
even more sharply.
Table 58 compares the trend of sales in the Tampa district
with that in Florida and the United States. Two indices have been
prepared to show these trends, one based on the year 1920, and one
on 1929, which was the peak year for both the Tampp District and
the state. Production in Tampa in 1920 was abnormally low because
of the. strike. The first of these trends for the-Tampa District,
based on 1920 production, is upward, reaching 221.6 in 1929, drop-
ping to 128.2 in 1933, and rising to 164.5 in 1938. The trend for
Florida is somewhat different, being a gradual increase with no
peaks and valleys from 1920 to 1938, when the index stood at 163.1,
very close to the Tampa District index. Production in the United
States dropped from 1920 1938, having an index of 63.6 in the
latter year.
The trend from 1929 to 1938 was downward for the Tampa Dis-
trict, this decline going to 57.8 in 1933, and increasing to 74.2-
in 1958. This closely paralleled national production,which dropped
to 66.0 in 1933, rising to 79 1 in 1938. However, production for
the Florida District was entirely different. It likewise decreased
to 74.2 in 1933, but since that year showed a remarkable increase
to 137.7 in 1938. The rapid increase of the prodUction of the
Swisher Company, in Jacksonville, accounted for this state trend.
In Table 59 is shown the estimated payroll of all the plants
in the Tampa area each year from 1926 1938. In 1938 this pay-
roll amounted to 45,883,000, which was only 62.3 per cent of what
it was in 1926. The payroll peak in the industry was in 1929, when
the total was $10,968,000, about double that of 1938. However, the
purchasing power of a dollar in 1938 was considerably greater than
in 1929. When the depression started the payroll declined to
$4,972,000 in 1933, rising sporadically from that year to 1938.
Table 60 shows the number of employees in Tampa cigar facto-
ries, including machine factories, separated as to men and women,
in 1930 and 1939. It is seen that in 1930 the Tampa cigar industry
employed 11,748 persons, while in 1939 this number had declined to
.6,997. This total is for the larger plants in the Tampa area. In-
cluding the small, independent plants, and the buckeyess", it is
estimated that 7 500 workers are at present employed in Tampa ci-
gar factories. his table shows the pronounced trend toward the
employment of women. In 1930 men comprised 57 per cent of the
cigar workers, and women 43 per cent, while in 1939, women made up
55 per cent and men 45 per cent, of the total workers in tve Tampa
cigar industry.


A consideration of cigar manufacturing %n the Tampa D ct
should include the activities of the Havatampa Cigar C
which for some years has been the leading producer in Tampa
This company was founded by Mr. Eli Witt, a very ente ing
mai, who cam to Tampa in 1904 and engaged in the wholesale tri-
bution of cigars. In Janoe 1918 he started his own factory
Tampa for manufacturing cigars. Hand methods of production
followed in this plant for sose years, both the Spanish -
tem and the mold method being used. Mr. Witt was not satis
with the low productivity and high labor cost of the hand
and early in 1924 Installed machines in his Tampa plant,
proved very successful. When the Havatampa plant was meo
a policy was-followed of retaining the old workers, insofar this
was possible. In'order to retain as many as possible, bun
machines with hand rollers were put in the plant, along wit
automatic machines. Some teams of hand mold workers were
The Havatampa Company has a daily output at the present e
of approximately one-half million cigars, mostly Class A. 11
part of these are made by hand molds, about one-sixth with -
ing machines and hand-rolling, and the rest on automatic ma as.
These machines are all of the short filler, two-operator ty
sixty-two of them being in use, besides twenty-three bnoh -
chines with their hand rollers. The plant is operated two t-
hour shifts a day.
There are almost 1,000 workers employed in the avatzm lait.
About three-fourths of these are women, all machine operate ing
women. The annual payroll averages about three-fourths of a -
lion dollars,with a weekly payroll of approximately $15,000
wages received by these workers are satisfactory, being abo hose
now received by the workers in the hand cigar plants of T The
company does maly things to promote the health, comfort and i-
ness of the workers. The plant is non-union.
The Havatampa plant is efficiently operated in all de nts.
The tobacco used in the cigars comes partly from domestic a es
and partly from other countries, the wrappers and binders
domestic, and the filler a blend of domestic and Cuban toba
with some from Puerto Rico. A careful check on materials i in-
tained, every ounce of tobacco being weighed and accounted
Besides being used for cigarmaking, modern machines are us
stripping* oellophaning, banding, stamping, and punching o
Economies of many kinds have been installed in the plant, t duce
Much attention has been given by the company to advert ,
the expenditures for this exceeding those of all the hand a
plants of Tampa combined. This advertising has been effect
helping build up the company's business. It is outdoor ad sing
mostly, but includes showcases, windows, radio etc., and a
missionary work. The concern has been fortunate in having
Eli Witt company for'an important distribution outlet, this 1-
ing company making about half of its sales.
The Havatampa Cigar Company is an example of a cigar p
which has put mechanized Improvements and efficiency into i
operations in a producing area where such a policy was not red.
The success of this company is proof of the soundness of thi l-
Another plant in the Tampa District, other than the ha ts,
is Thompson and Company, Inc., of Bartow. This company clos its
hand factory in Tampa in 1956, moving it to Bartow where it
combined with its machine plant established some years befo Its
selling office is still maintained in Tampa. This company i et-
ing with very satisfactory success. It is one of the three T a
cigar companies using the mail order method of direct sales. con-
sumers, the other two being J.W. Roberts and Son, and the J.
Swann Company (sales organisation for Lopez, Alvares and C y).
Besides the Tampa hand plants which are members of the a
Cigar Manufacturers' Association, there are several small p s
which are operating in Tampa outside of this organization, as


non-union plants. The survey did not investigate these as fully
as the others, but general data gathered concerning them indicates
that some are prosperous and others are not. Inolfded in this
group is the Val M. Antuono factory, one of Tampa'% oldest cigar
firms. numerous buckeyess" operate in Tampa. Thete are composed
of one oigarmaker with possibly several assistants and make 1c-
gars by hand in a anall shop or in a home. Their output and ef-
feet on the industry are negligible.

4 Tampa Cigar Plants Production and Sales.
As has been stated, this survey stressed the problems of the
hand cigar plants of Tampa, which are more serious than any of the
others,carrying the investigation of their operating records back
to 1926. Data concerning the production and sales of these plants
In analyzing the results of operations of the Tampa hand ci-
gar plants, it should be pointed out that these plants are not ex-
actly homogeneous. In the classification given at the beginning
of this section, it was shown that the hand plants used different
types of wrapper tobacco in their operations, some using Havana
and some shade wrappers. The processes used also tend to vary.
It was desired to set up a classification based on processes, bat
it was found that there were so many combinations Of these, and de-
grees of changes in the proportion of total output made by each,
that such a classification would be confusing rath r than enlight-
The Tampa hand cigar companies vary greatly iA size, the cap-
italization ranging from $25,000 to $4,000,000 for the individual
plants, the net sales from $100,000 to $2,000,000,'the output of
cigars from 1,000,000 to 35,000,000, and the number of employees
from 30 to 1,000.
Table 61 shows a classification of the Tampa lgants according
to capitalization, sales, cigars manufactured, and'employees. It
is seen that four of these companies are very large, being capital-
ized at more than $1 000,000, and two have a capitalization between
$500,000 and $1,000,600. Six of the companies hav small capital-
ization ranging from $25,000-$100,000. In sales aAd total cigars
manufactured five of the companies are outstanding v having sales
exceeding $1,000,000 and producing over 20,000,000 cigars. Three
more companies have sales ranging 5,00,000- l,000,00 and produce
10,000,000-20,000 000 cigars. Theme same five companies have over
500 employees, while four others have from 250-500 Seven of the
companies make sales ranging between $100,000-$250000 and pro-
duce 1,000,000-5,000,000 cigars.- Five companies have 90-100 em-
This table shows that there is a vast difference in the size
and operations of the Tampa companies, which wouldhave a decided
influence on their policies and problems of production, sales, and
general management. It is seen that there is whatLmay be termed
a group of large companies, and likewise a group of small compan-
ies, with other plants in between. On some matter the large
plants and the small plants have divergent interests.
Some of these small plants that are finding difficult to
operate successfully, might consider the advisab ty of consol-
idating with other companies. It is believed that a number of
consolidations in the Tampa cigar industry, not only for small
companies, but of large ones as well, would'be advantageous for
the firms and for the industry.
Table 62 shows the total number of cigars sold by these
plants each year, 1926 1958. It is seen that the production of
the plants was 230,287,000 in 1926, from which figure it increased
to a peak of 308,552,000 in 1929. It then declined each year to a
low of 180,142,000 in 1955, followed by a gradual Increase to
215,572,000 in 1938, which is slightly less than in 1937 or 1956.


Using 1989 as a bse year, the sales aeibed to 404 in 1929,
clined to 78.8 In 1955, as increased to 9S.6 in 1958. The
sales ar 09.9 per ceat of those in 1929.
Tables 65 sad 64 show- the division of sale into the re
classes eanh yea, 1926 1938, with the pepoeatae of each the
annual total. Thea ar very asipitioant figures, as they e in
what is perhaps the at serious probi of the Tampa band :
industry, a .l, the great increase I the Closs A ogar the
decrease in the higher olasse during this period. The ale
Class A oigar inoreesed frem 21,572,000 to 94,400,000 a
period, or 4.4 times, eprseating 9.4 per ent of the total
1926, and 45,8 per oent in 1938. Class B parentage of iota les
also inereamed 28 tmas, beiag 2.4 per cent of the total in
and 5.7 pe cent in 1938. The higher classes, C, D, and e
correspondingl Class 0 dropped fro 5 .9 per ce~t to 41.1
cent, Ola s fra 89.4 per sent to 9.2 per cent, and 0lass
0.8 per cent to 0.1 pr cent, in the period.
from these tables it can be seen that whereas in 1996 a t
nine-tentha of te production of these plants was in the
grades of cigars at the present tim only about half of it
these olasesu.: A the and igar industry of pa ha alma
a quality production ee ter, dependent upon high grad a
its very e'O t mOe, this shift in market dead has cottit a
severe blow for it. Te Tapa lp ndautry has been built up on
manufacture of high rad cigars by the Spnaish hand proass a
process is Ot praete l fr. low grade oigari, in three h-
anised age* The 458 per cent Class A production shld all
made by a mamhine.
Under the prLent competitive aaoditiosa in the matloan -
gar industry, the Spsanab hand system not suitable for 0 C
production, whieh if still very important, with its 41.1 per t
of the total. A faster System than the 8paniah hand is used
these oigar in most of the cigar prodPung areas except
This is the competitive system, hich certain of the Taimp
facturers would like to install and bih may be the only a
tion for this problem. a Part V of thia Report ha so e me
mendations relative to this condition.
Another Upeot of this situation that should be pointed
is that it igiat be possible by effective advertising and
salesmanship to oheek the decline in the sale of the higher
cigars and restore part of the lost market for them It i
that this can be done, but a prerequisite to funds for dver
is a system of Rnfaoturet p ittng.eer podtivity, et
the coalpatitio Opf other centers.
Table 46 abhoa the sales of oigara by classes during th at
six month of 1A59, Proe these figures it can be see that
situation 1 growing are, as the Olaes A sales have' increa
to 48.4 per ent of the total, and the Class C ogars decrees
to 37.6 per sent.
Beoeus of the ipportanoe of this analysis of the prodc n
of the Ianpa hand plants a breakdown is made to carry it a le
further. K na cigar plants fall into three group, and
problem of these are not entirely the same. Plants in the t
of these groups manufaoture clear Ravana cigars exclusively,
the second, pVat hava ana d part aade, and in the third,
shade. The pra Potion of each of these groups divided into
five revenue olaass was analysed from 1926-1958.
Tables 6g, 07, and 48 show the quantity of igara d
in each on of these groups in eaqh year, 1926-1938, divided
the reveone classes. Fro these tables it is seen that the 1
production of the clear javana plants inorased 56.9 per et -
tween 19i and 1938, that of the combination Havana and ants
increased 22.9 per cent, while that of the ehade plants deo
42.7 per oset, between these dates. These tables also show
all three group increased their production of Class A and
B cigars substantially, the .clear avana increase in then l e


being greater than the others. In all three group there was a
large decline in the production of Classes D and. In the shade
plants and the combination plants the production Class C cigars
decreased, but in the Havana plants there was an increase in this
class, in this period.
Tables 69, 70, and 71 show the percentage of the total pro-
duction in these three groups of plants that is mase up of the
different revenue classes. It is seen that in 1936 the combina-
tion plants had 68.6 per cent of their production In Class A ci-
gars, and the Havana plants 51 per cent, while the shade plants
had 20 per cent. Likewise, that the combination and Havana plants
had 26.6 per cent and 34.7 per cent of their production in Class
C, while the shade group had 65.6 per cent of its production in
this class.
Table 72 shows the proportion of the total production, and dt
each of the revenue classes, that was produced by aach of these
groups of plants, in 1938 and as an average over he period, 1926 -
1938. In 1958 the first two groups of plants produced 86 per cent
of the Class A production, and the shade plants 14 per cent. In
the same year the shade plants produced 47.4 per aent of Class C,
while the Havana plants and the combination plants, produced 35.13
per cent and 19.5 per cent of this class.
Prom these tables it can be observed that in the period pre-
ceding the depression the clear Havana plants produced a larger
proportion of high quality cigars in the Tampa iraket, than the
shade plants, and the latter a larger proportion of Class A ci-
gars. Now the situation is somewhat reversed in regard to the lat-
ter class. The bulk of the shade production has been in Class C
cigars throughout the entire period.
A careful study of these tables should result in an intelli-
gent understanding of production trends within th# industry, that
might help in solving some of its problems.
Table 73 shows a seasonal index of sales of cigars by classes
during each month in 1938. November and October gre the busiest .
months in the cigar market of Tampa plants-. June likewise has
brisk sales, whereas January is the dullest month, followed by De-
cember and February.
One of the constructive criticisms that this reportt makes of
the Tampa hand cigar industry is that the plants produce too many
different sizes of cigars. Modern American companies in other in-
dustries have learned that it is costly and even tasteful to pro-
duce a multiplicity of models and types of products, so have con-
centrated their efforts on as few as possible.' ,.
In Table 74 it is seen that 826 different brands are now being
manufactured by the Tampa hand plants. Authorities in the. industry
state that there are at least half of this number or 400, diffeinl
sizes of cigars made in the Tampa plants. It would seem that the
Tampa cigar industry should do as other industries have found ad-
visable, and eliminate a number of these brands aid sizes. Adver-
tising of a few brands could be done much more effectively than of
a large number.

5 Tampa Cigar Plants Financial Statements.
In Table 75 a composite balance sheet is shown of the Tampa
hand cigar plants each year, 1926 1958. These figures include
eighteen plants,the records of one plant being too incomplete for
inclusion. It can be seen that the capitalization of the Tampa
hand plants is about $13,500,00. The figures show a conservative
and favorable situation, as Tar as the capitalization of the plants
is concerned. The net worth has increased slightly in the period,
from $10,704,000 to $13,334,000, rising to a peak: of $15,780,000
in 1951 and declining after that year to the figure named, with a
consistent decline. The total assets have increased slightly in
the period, going from $12,787,000 to $15,585,000. Assets reached
their peak in 1950, with a total of $18,205,000, followed by a


decline f mro t y y.ear to 198. Total. lablities woze 1,
in 1958 as O64 Od with ,Pe69,000 to :IAUl Ina A8 they
$3,s223s,o00 froaeeh poela th*y deollaad to a1w7,000 I
rising each Oyea fiP this date to .1938 Oreat wat fixed
and liability i, as ll aO counts ree2elvable as nds aeote le
may likewisebe -seo fiao this table.
In Table 76 ocrtai ratios mand pe atages of the t
figures are show. The ratio of weOkI g capital, o current to
to current liabilities wa 6.04 in 19, a favorable ratio,
not as great as in se past pars. Sh ratio of -at worth t
rent liabilities we 8.58, h2 b b is likewise favorable, bt
great as it has been in resent years. The ratio of net worth
total liabilitteU wMS 7.96. The ratio of net worth to total to
was .87, of ouirent asise to total assets, .61, ea of Ua-
bilities to total liabilities, .85. The ratios show satisfao
Table 77 -shows s very significant figures, naimly t
profit of the llopa hand plants k ah 1sa, 1996 1938, wth
percentage Of tiLs profit tto t worth Of tee nineteen
hand plantau, iea data were not available for three, *Aoh
all sales tbprou selling omopanies, an did not has data di
ing net profit tar this period.
These figures tell a sad story, and should be a conlamsi
answer to persons not familiar with the situation who awe und
impression that the Tamp*hand plant have ade large profits
recent years. The net profits of the eO panies have dwAndled
$2,138,000 in 1988 to f6,000 In 1938. Not many industries in
United States have shown such a precipitous drop. On a capi
ization exceeding $13,000,000, a 6 per. oent return would
at least SOO0S0 annually. This figure has not been
since 1951. -ft rturn on invested capital was 0.05 per eeat
1938, and has been less than 2 per cent every year with one
ception siace 195e. In 191 and 1980 the returns were fair
ceeding 7 per oent and 8 per cent, reopectively. Prior to
the profits Were excellent, exceeding 1 per cent. busin
operating under eat fiaetory conditions should be able to
6 per cent on ts' investment. If its return ar leas than
third of this aoant, something is wrong and should be core
In 1938, the neteen of tha nineteen hand r companies of
six made s oft tal. Of these six copant only
made satiao profits, the returns of the other three be
small. thfle -ae that only one-third of the band cigar
of Tampa are making ar profits at all, and only one-sixth of
are making satlhetory profits. This situation is a Tvra
is factory one ad wouldd convince everyone .of the Anessity
prompt and effective measures being taken by the indautry, if
expects to conti4an to operate.
In the first six month of 1959, reports fra twelve of
hand igar plant showed a net loss amounting to appro atl
0.43 per ont on the capitalisation of these orpaenies. P li
and lose figures for the. other -oapanies were not available.
downward trend ft earnings appears to be continuing.
Tables 78 and 79 show a composite profit and loss stat
together with percentage of each group of expenses to cost of es
for each year from 192 1938 Because of the lack of detaa ex-
pense record int some of the plants, these data were om fourteen plants.
It can be seen that the net sales of the oampanies have
creased.in zeent yeas in 1938 being about half of the total
the peak year 1989 but slightly larger than in the depress
years. The ratio of cot of sales to nt sales has increased d-
ily since 1926, being 76.4 per cent in that year and 81.8 per t
in 1938. The ratio of selling costs to net sales has likewise
increased from 5.6 per oent in 1986 to 9.2 per cent in 1938, e
administrative costs have risen from 5.4 per cent to 7.6 per o
This constant increase in the proportion to the total coo


of production eosts, selling costs, and administrative coats of the
plants has meant that the margin of profit has grlfn steadily Sall.
er. For this group of plants It has dropped frol a peak of 96.
per cent in 1928 to 0.1 per cent in 1958, based o-Snet sales. This
margin of total costs to sales is entirely too grant. It is caused
by a reduction in sales prices, possibly combined with a lack of
efficient operation of the plAnts.

6 Tampa Cigar Plants Chief Ooats of Production: Labor, Tobacco,
In this sub-section and the one which follow the individual
costs of the hand cigar plants will be pointed out, the most ispor-
tant costs first, then the minor ones. Detailed cost figures were
not available in all the plants for years prior to 1930, so the ones
shown for the entire group of companies are from 9.30 1938.
Table 80 showste three principal costs of Qhe Tampa hand
cigar industry, labor, tobacco and taxes. Labor Pefers to the
direct labor used in the plant, tobacco to the colt of tobacco
alone, excluding duties, and taxes to the total tzxes paid by
the companies, Pederal, state and local, including duties on im-
ported tobacco.
In 1958, labor comprised 40.8 per cent of the cost of sales,
tobacco 27.5 per cent, and taxes 20.3 per cent, the three to-
gether making up 88.6 per cent of the total cost if sales in the
plants. DLring the period, 1930-1938, labor madeiup 40.5 per
cent of the cost of sales, tobacco 30.2 per cent, 'taxes 19. per
cent and the three together, 89.9 per cent.
The proportion of total cost of sales represented by labor in-
creased during this period, 1.8 per cent, or fromP39.0 per cent to
40.8 per cent. In 1934 labor constituted 42.7 pet cent of the cost
of sales, following which it declined to 1938. Slight changes in
labor rates, and the trend toward the partial use:of machines in
some of the plants, accounted for these changes.
The proportion of cost represented by taxes Increased 3.1 per
cent, or from 17.2 per cent to 20.3 per cent during this period.
The addition of social security taxes and increased Federal, state
and local taxes were chiefly responsible for this increase.
The proportion of cost represented by tobacco declined 5.5 per
cent, or from 32.8 per cent to 27.5 per cent betwSen 1930 and 1938.
There was some reduction in general market prices-of tobacco dur-
ing this period, and some lower grades of tobacco were purchased.
The change in market demand to cheaper cigars has caused the compa-
nles to use cheaper tobacco. The general quality 4f Cuban tobacco
has declined somewhat in recent years, owing to inadequate ferti-
lization and adverse climatic conditions. A discussion of the to-
bacco problem has been given in Parts I and V.
Table 81 shows the cost of labor, tobacco, and taxes per I
cigars manufactured by the Tampa Plants, 1950 1938. In 1938 the
cost of labor per N cigars manufactured was $19.65, of tobacco,
$13.26, and of taxes, $9.76. The average costs during this period
were labor, $21.25 tobacco $15.84, and taxes $lN.07. The present
coat of all three ls lower than thq average cost of each for this
period. The sum of the three was (42.65 in 1958,f while the aver-
age total of the three for the period was #47.16.
The next table, number 82, shows the cost of tobacco and du-
ties each year, then the amount of each separateW, with the per-
centage of each to the total. The cost of tobacco has declined,
from $5 780,000 in 1930 to $2 907 000 in 1958. 0 t reached a
low cost of $2,379,000 in 1935. The 1938 total is higher than in
any year since 19352 with one exception.
The cost of duties has-fluctuated considerably in this peri-
od. Beginning with $1,311,000 in 1950 they.declined to $674,000
in 1954, rising again to $1,206,000 in 1937, and dropping to
$953,000 in 1958. The low duties of 1934 and 1935 can be traced
to the effects of the Cuban Reciprocity Treaty. In 1936 these


rates were raised and the duties rose sharply. 'These rates
shown in Table 49 in Part V.
Duties cmarise about one-third of the eost of tobacco
ported froi QOuba* Sevetl years ago they *ade up about one
As some of the *aNMI plants use eam domestic tobacco in op-
erations the eoot of duties for thea is less.
Table 8 ab8how the cost per oalga smtaoaoctured of oo
and duties together, then separately. In 1938 this joint e
figure ws I17. while its average for the period was $(0. The
cost of tobseeo alone was 013.26 per I in 1938 and 15.84- the
period. The east of duties per X in 1968 was 64.42, while
$4.57 for the peYiod.
In Tabl 84 is shown the amount of taxes of different
paid by the Taqpa plants annually, 1930-1958, with the p
of each to the total. In 1938, 44.6 per cent of the total
made up of duties, and 41.9 per cent of. Internal reveme t ,
while 13.8 per cent represented other taxes. The proport
taxes coprlised by dutile has been fairly constant, alt
tobacco imported has groun lees expensive. The part made
revenue taxes has decreased, while the other taxes have n aed
sharply. he prodfition of lower priced eigar and reduced
tion aoonted for oat of thb decree in internal rev e n
while PedeFal state and local taxes have beel raised subt
causing the oias of other taxes to increase.
In Table 85 is abown the cost pa M c igars mnuft
duties, Internal revne, and other taxes. In 1938 duties 04.36,
internal revenue taxes $4.08, and other taxes $1.35. The aver-
age of these coats wast duties $4.57, revenue taxes $I.40 other
taxes *D0..
Tablp 88 shows the present internal revenue taxes on e
according to the principal internal revenue aots froa 190
The last change in these rates as mCde in 1986, the rates s
year being in effect at the present tie. These rates per a
are: 4.75 for aril cigars weighing not more than 5 pounds .00
for Class A cigars, e 3.00 for Class Bi ".00 for Class C,
for Class D and 135.60 for Class E eigas..
In Prt V of this report a list of port duties on t 0
is given in Table 49. The 1936 duties are effective at the nt
time. These duties per pound are: $172 for st- ed wra i .20
for unstemed wrapper, $.40 for steamed filler, $.28 for
filler and sorap.
It is a debatable point as to whether the customs duti
internal revenue taxes on cigars are shifted to the oaus
borne by the manufacturer. In view of the present highy tl-
tive state of the cigar industry, and the declining maket the
product, it is believed that a substantial share of these is
absorbed by the companlee. This tends to be especially ble
in the ease of the eusteus duties, as this tax is not levi the
chief oepetitive product of the cigar industry, cigarettes
Tables 87 and 88 give the breakdown of the taxes in i-
cal Tampa eigar factories in 1933 and 1938. In the case of so
companies the tax burden amounted to 21.5 per cent of coet ales
in 1933, and 18.9 per cent of coat of sales in 1938. A difa ce
between the taxes paid in these two periods was that .in 19g pro-
cessing tax was required, and in 1938 social security taxes
in effect, as well as unemployment insurance, both amount
substantial items. Another different was caused by. the in-
creases in state, county, and city taxes in the years betwe 935
and 1938. The amount paid in duties was also much higher.
these tables the individual taxes paid by cigar plants can een.
They show that the tax burden on the Tampa cigar industry is t
only heavy, but is increasing,


7 Tampa Cigar Plants Other Costs.
Table 89 shows the cost per M cigars mamnfactred of supplies
used by the Tampa hand plants. This coat has tended to decrease
from 5.20 per H in 1930 to $4.52 per M in 1938. Te cost of box-
es cans, labels and bands decreased from $4.46 peV M to $3.64 in
this period. The cost of cellophane per M decreased from $.74 to

Some interesting data on the cost of cellophaling are given
in Tables 90 and 91. The first of these shows comparative costs
of cellophaning by hand and machine over a 5-year period. The costs
of cellophane, labor, and electricity required by the machine pro-
cess are given. The average cost of cellophaning by machine in
this plant was $.56 per M, while the average cost of cellophaning
by hand was $1.57. The machine cost of cellophanig thus repre-
sents a reduction of 64 per cent in cost for this lant. The other
table gives figures showing comparative costs of o llophaning by
hand and machine. According to the experience of his plant the
hand cost was $1.65 per M, and the machine cost $. 2.
Table 92 shows the advertising expenditures o the Tampa hand
plants, as represented by the percentage of net sales. This was
3.1 per cent in 1938, and was about the, same during this period.
This is a very low'figure for effective advertising expenditu es.
This table likewise shows the bad debt expenses of the plants.
This is very low, being 0.2 per cent of net sales in 1958. In
years prior to that it was higher. This shows a favorable posi-
tion as far as collection of accounts by the cigar: companies is
Because of Incomplete records it was Impossible to get some
of the smaller expenditures from the companies.
Table 95 shows a compilation that should be of interest to
"every reader of this Report. This is the estimated cost to the
plants of giving away free smokers to the workers.
Pron the revenue books of all the nineteen haid cigar plants
of Tampa figures were taken showing the number of cigars distri-
buted each year. These were given at the rate of Whree per day
to each male worker in the plants, and are a matter of record in
the internal revenue books of the companies.
Besides these smokers given away at the lose of work each
day, the Tampa workers are permitted by custom to tmoke as many
as they like during the day, made with the company's tobacco. A
great many sources were-consulted in the effort t4 arrive at a
fair estimate of the number of cigars smoked by w~pkers in the
plants. A careful estimate has been made, on the basis of which
it is concluded that each male worker smokes an average of at
least three cigars a day in the plant.
The cost of each of these six cigars was next estimated. The
cigars smoked in the plant and taken home by cigamnakers are fre-
quently made of the most expensive tobacco obtainble, and are
usually extra large in size. The .cigars given aay to the em-
ployees other than cigarmakers at the close of thq day are usu-
ally cheaper. Considering these factors, it is eStimated that
the average cost per cigar given to the workmen is 5 cents each.
Multiplying the number given away each year by th&a price gives
a total annual cost of $403,144 for this period. It was $410,657
at the beginning of the period, rose to $487,105 in 1929, and de-
clined to $332,070 in 1958.
The conditions surrounding the smoker practice are discussed
elsewhere in this Report. It is important-to notp here that this
cost to the Tampa hand plants has been approximately $400,000

8 Tampa Cigar Plants Enployees and Wages.
According to information furnished by the Tampa hand cigar


plants, therm We employed in thee plant- ca Jly 1, 159,
persona This is 96.9 per cent of the total employed in the ta
in 1926, 84.S pr aset offthBBm -plotsd in the plants in
peak year, aM U5.86 p49 eant of these aoyerd la 19S, the
of lowest rnligmat. hm figt~mu aeft o7ly to the .aiae
hand plant iMU att6dit I this a m ayj at not to mn other
plants in i el- th* m p It earw. 1umnt in hose plants
6,283 in 19M, se as hbig .h T M Ib 19, and dropped to
5,268 in 1SM. thioe fitgree are show n Table 94.
Of thu total eaploees Sa the Tamps plants, 51 per cent
women and 40 pa seat are M at the present tim. The
ber of worm has been inoawr in in the pueat in resent yar,
Efforts go Ad*e to gst Sanot figure* oooar l this trind,.
it was fotad that, pri r to the introd tion or the sooial a ty
taxes, no OpaMn tioa of tle ma and wa. n m mas m in the
recorAs. In may plants, prior to the latrodnoteoa of a Ital -
rity, no zmradwmm kept or the name of the worked, identif Ion
being made entlr2ly by nse. The officials of mat of the t
stated that th M= r of oan employee in their plants as
orea sng. ohidfldPy the oasgklar in delftzmt. It theip e
time the mam' or m and of in n lU dpart t oa the t
is exactly eqMl. -hn m o.ilag in the plants i doe by
women.. Sh waroMhs eigaed In bsandring -ad osll a& amn t
entirely worea as wel. 4 pea coet of tw office foroee
other a eloepse MIea a forsma, he lperS, *legInaaQXlect ,
packers atIh-lappeia m r mAsty om. Thp dlstriLutoID of a
by oooqptwtlr oi abm in fable 96.
In Taba 96 is V=w tte ansange #sir pwa an tib aM
hourly ealmagn-of ail aMnoyes in the ba ar pat% a,
excluding the effm tnee ad 6tfI1oi641* he ae ahwn by
months, B S2 ta*ka by the proee ast e aninag the payroll
each plant: to a typleal e h f, each mouth in the period
1958 Jamnop 530 ho aarge weekly eag of Tampa cigar
eea is -II, 6, eM thae avege hearly wag 00.39. The highest
ly and holy earnings wre in October an the lowest in,
according to ti ts bl. mxlthly ra gaof tea6h weo r -were
diffi to get, beanuse of inauffieles payroll data relate
days waced&,
In Table 97 Is hoae the *. rate* paid undsr the Spani
hand arste~ t I 194 a; d .190 The late i the avma m o
are $1.00 loes p 1i the^ *h pnah hai ethred h abad
rates aromMd y les thn these ft p the Bavaaa sold,
diffnetgbSll. tr- (1.60 e.s50o r Ir 'the rate. ptti
makers ona bn0i H earhines is 0.90 pTe r.
Table 96 g1ved the average weekly -N u of otgarnkera ua
he diffe at processes, and of other Wo: ita the pl nte,
twelve-oa th period fro Jly, 19S8-*ae. 1939. The average
all cigarlemih in the Tama hand plants during this peroSe
$13.86. mft oMhae. operaes got an average of $16.88 weekly
the ha4i mold operators $14.62 the workers using the competit
system 018.91, the patna ha d wekrAn S13.63 and the wM
on the mita-bunae, bmed-rolled prooema 6j" .
Peaft'e reeiwv B4.,66 weekly, eolooters S8.90, benders .007
and strSfea 09.06. I oaideridwag these wage it Anmt bt
bered hatf the' plate n or nt speating a foiull fitveday week,
conaiselazr less, part of th time.
SPeoentage distribution of eigarmaker by presetoes
shown in-t 90. Prea this it is seen that 48.8 per at -t
Ploysd in the 'old iprooaes. 7.1 per sent Sa the miaoine
hand-relled proooes, as BU.7 per oent a the Spanish hand
with a vea al Muchae uag aehines aMd th eaepetititv 5a.
Aaording to t2e figures owa for ithee grafpse the
group aecounta for the largest output in option to its
the mnehine-bumhed, -ha-olled ounp the next, the cobipetiti
workers the third the mold workers the fourth, and the Spanis
workers the lowest.


9 Tampa Cigar Plants Costs of Different Procesles.
In tne survey of the cigar industry of Tampa ie cost records
of the plants were carefully checked to determine the labor cost
per N cigars by the different processes, and the ocst of the dif-
ferent operations. Twelve sample weeks were selected from each
month from July, 1938 to June, 1989, inclusive, an4 the labor cost
and earnings of each worker studied for these perlids.
Table 100 shows the average labor cost per M cigars per work-
er to'be $13.50. A comparison of the labor cost uJder the differ-
ent hand processes is interesting. With the Spanish hand process
the labor cost per M cigars was $24.89. With the iand mold process
it had been lowered to 917 94. With.the competitive system it was
lowered still further, to 15.23. The short fillet cost per I with
the bunching machine and hand rollers was $7.99 pet M, while with
the automatic machine it was $2.04.
For this period the labor cost.per M for stripping was $1*34,
for selecting $0.75, for packing $1.69, and for bang, $0.56.
The cost figures contained.in this table, be based on ac-
tual operations, indicate that the Spanish hand sy en of king
cigars is the most expensive of any, that the handold system is
much more economical, and that the competitive ays has a cost
advantage over both of these. It also shows the v low labor
cost of producing short filler cigars with an autoatic machine.
Table 101 shows the productivity of cigarmakete using the
different processes. The figures in this table wete taken from
sample weeks in each of the twelve months, July, 1l38-June, 1939,
and the production totals of every worker working 4 fall week
added for these periods.
According to these figures the productivity of the Spanish hand
worker was 512 cigars per week, of the hand mold worker 812 cigars
per week, and of the worker using the competitive systemm 910 cigars
per week. For the short filler cigars the worker sing the machine-
bunched, hand-rolled process made 1,576 cigars and the worker on
the automatic machine, 8,137 cigars.
The index number at the foot of the table denotes the relative
productivity of the different processes. The mold method is 159
per cent as productive as the hand method, and the competitive, pro-
cess 178 per cent as productive.The automatic machine is ten-fold
as productive as the mold method, and five-fold astproductive as
the machine-bunched, hand-rolled process.
This table shows the mold system to be more productive than
the Spanish hand, and the competitive system to beomore productive
than either one, on long filler cigars. It also s-ows the high pro-
ductivity of the automatic machine for short fillet cigars.
The figures in Table 101 show the actual productivity of ci-
*gamakers in Tampa during a 12-month period. However as most of
these weeks did not include a full forty hours, a *ore exact basis
of comparison is presented in Table-102 which was compiled to show
productivity and earnings for exact hours, 8-hour yays and 40-hour
weeks. On account of incomplete plant records, it was impossible
to get these figures from all of the plants, but the ones included
are among the most representative of the Tampa han# plants.
These figures indicate that cigarmakers under the Spanish had
method have a productivity of 13.55 cigars per hou*, 106.8 cigars
per 8-hour day, and 554 cigars per 40-hour week. Workers using the
hand mold method have a productivity of 20.44 ciga4s.per hour, 163.1
cigars per 8-hour day, and 817.6 cigars per 40-hou* week, Workers
making cigars by the machine-bunched, hand-rolled process have an
output of 42.58 per hour, 340.6 per 8-hour day, an# 1,703.2 per
40-hour week. The ratios between the.productivity.iof the different
methods do not vary much from those in the precediNg table.
This table also shows the hourly,daily, and.eekly earnings of
cigarmakers engaged in the different processes, and likewise the
earnings of packers, selectors, banders, and strippers in the plant'

O RrAnm U s Sf.s or TA MPA CI7CAR PI SrS

Taest rtpifn tktn frtS Ve ooeaHflsE r t- Tu- hi
plants, fall to tow the real msplorlaty of the Optl tive
tern for long filler aiar, ad the mta.tip mophbae for sh
filler otgar The ha plants using tin- owam tin ltem
doing it on A* wag ll *sal* with tfotUtis h tat do not
mit a fll test of it. WsOC Ovttf. k winf, the plaut a
automatia shine bahm omnl a few of 'them sat hve not ha 1
for a Va lai per f amo r et prOared to get the full
productiyw frS tllM.
'( :





:-) -

Part V


1 System of Manufacture.

It is felt that the cigar manufacturers of Tapa should have
the right to use any system they desire in their plants. It is a
cardinal principle of sound economics and American business that
the management of a business should determine its policies and
methods of operation. Once this principle is abandoned, any
economic system based on free enterprise and competition is doomed.
Government regulation has encroached more and more on this princi-
ple,.and has made its application difficult.
There has been nothing in the findings of this survey to indi-
cate that the cigar manufacturers of Tampa are not capable of se-
lecting satisfactory manufacturing processes and putting them in
operation. It is believed that their judgement and decisions in
such matters should be unquestioned by labor or any other group.
A number of Tampa manufacturers would like to use the system
that has been used very successfully in certain other areas,
notably New Jersey, New York and Pennsylvania, termed the "competi-
tive" system. It was explained in several sections of this Report.
It is recommended that the competitive system of cigar manu-
facture be permitted those Tampa manufacturers who want to use it,
and that it be considered as including the Lieberman bunching
machine or its equivalent, with or without molds (open or closed),
with or withoitt suction tables, and with or without thimbles. This
would be a true interpretation of the competitive system as used
by the plants in the northern area, which are the chief competitors
of the Tampa cigar companies.
An Arbitration Award by Mr. Carl R. Schedler, of the United
States Department of Labor, on February 24, 1938 set a wage rate
scale for the competitive system in Tampa, which scale corresponded
with that in use in the northern area. The rates used by Mr.
Schedler wern based on a field investigation of the northern plants
by the United States Department of Labor, the report on which was
published December 4, 1937.
The present cigar survey included a personal check on the wage
rates used in the northern plants. These plants were visited by
the Director of the Survey for this purpose, and to observe opera-
tions and general conditions in them. It was found that the pres-
ent rates do not differ much from those in effect at the time of
the Jabor Department's investigation, some small changes having
been made.
It is recommended that the wage rate scale for the competitive
*system of cigar manufacture, as contained in the Arbitration Award
of the United States Department of Labor of February 24, 1938, be
followed by the cigar industry of Tampa,. in those plants using the
competitive system of manufacture. Likewise, that the method of
manufacture with the use of the drum mold, known aq the "Tampania"
system, be accorded the same wage rate scale.
It is believed that with the use of the competitive or
Tampania system of manufacture, the production costs of the Tampa
plants could be reduced about 25 per cent, and the earnings of the
workers could be increased 20-40 per cent, provided the same de-
gree of care is given to the preparation of the tobacco, the same
economies are applied, and the same cooperation received from the
workers, as in the plants in the northern area. Table 12, in Part
II, illustrates the comparative superiority of the,competitive
system over the Spanish hand and hand mold methods,
The figures shown in this table seem to indicate conclusively
that the introduction of the competitive system of cigar manufac-
ture to Tampa would be of great benefit to both the manufacturers
and the workers. In its beginning the competitive system might


result in the displacement of some workers but It is believe
that these could be reenployed later on. Possibly other tao
the plants miht be found for some of them.
If the competitive system is brought to Tampa, adequate
ing of the workers in the use of the system is necessary. A -
ing school for the workers engaged in the process might be ad
able. -
It is essential to the proper operation of the competition
system that more attention be devoted to the preparation of th o-
bacco than 1a done at present in the Tampa plants, and that it
in a condition entirely suitable for the high productivity ex od
of this system. Also, that other economies in the plants of -
ern cigar companies using the system be introduced into the T
plants, in connection with it.

2 Technological Improvements.
It is recommended that the Tampa cigar manufacturers inve -
gate the possibility of installing mechanical devices in their
plants for various operations that can be performed satisfacto y
and at a lower cost by such devices.
First among these are the automatic machines, which make
entire cigar. As has been explained in Part II, t-ese are of
types, long filler apd short filler. The long filler machine
used extensively in northern plants on 5 cent cigars, End to
extent on 10 cent cigars, but rarely on higher priced cigars.
is adaptable to domestic and Sumatra wrappers, but in the opin
of experts, is not very suitable for Havana wrappers, It ia
doubtful whether this long filler machine will ever be used to
appreciable extent in the Tampa Havana cigar industry.
The short filler machine is used at present by some Tamp
companies on Clas A cigars, selling for 5 cents and less. It
widely used throughout the rest of Florida and the nation for
cigars. The coat of manufacturing of'Class A cigars by the sh
filler machine is so much less than by other methods that it i
strongly advocated that Tampa manufacturers adopt machines for
their Class A production. The semi-machine processes could be d
advantageously for the Class C or medium priced cigars and pos y
the higher classes.
Table 101, in Part VI of the Report, showing the comparati
productivity of the machine and hand methods, should be convi
evidence as to the economy of such a process.
Machines woald also permit a more economical use of tobac
enabling two Or three cuts to be made from tobacco leaves inst
of one by the hand methods.
Next to the short filler automatic machine, the method of
making Class A cigars by the bunching machine with hand rollers
is most economical. The majority of the Tampa plants use the
chine-bunched, hand-rolled process to some extent on the low pr
The table just referred to bsows the cost advantages of th
bunching machine and hand rollers over the processes other than e
automatic machines. This process is recommended for Class A c s
where it is not possible to install the automatic machines.
It Is aJso recousended that machines for stripping the wra r
and binder tobacco be installed in the Tampa plants.* hese mac es
can be operated satisfactorily, and at a soh lower cost than
old method of tripping by hand. The comparative coat of madhi
stripping and hand stripping has been given in Part II.
Machines for putting cellophane wrappers and bands on the ars
are also advocated. One machine, requiring the services of
one operator, can perform both of these functions. Its cost pe
:lgars is much less than when these operations are done separate
D1 hand. These comparative operating ooats are shown in Part I
Ind in Tables 90 and 91, Part VI.
Mechanical devices other than those mentioned may be found


desirable in the plants, to promote efficiency and economy. Tampa
cigar manufacturers would do well to investigate toe possibilities
of these. Where mechanized devices can be economically utilized,
their adoption is usually advantageous. It is only by making full
use of such modern scientific aids to production that the Tampa ci-
gar industry will be.able to keep abreast of the national industry.

3 Advertising and Selling Methods.

Along with improved production methods, the cigar industry of
Tampa is sorely in need of effective advertising and better sales
Efforts should be made to help revive the Tampa cigar industry
through advertising. There are three principal ways in which this
might be done. First, for each Tampa plant to advertise its indi-
vidual brands independently of the other companies; second, for
all the cigar plants in Tampa to Join together in A campaign to
advertise Tampa-made cigars, without reference to the brand of any
company; and third, for the Tampa cigar companies to join with ci-
gar companies in other parts of the United States in a nation-wide
campaign designed to popularize and increase the smoking of cigars.
In connection with the use of all of these, education of the pub-
lic through indirect means is needed. Examples of ways in which
this could be accomplished would be through the use of press re-
leases, magazine articles, pamphlets, and radio taaks containing
information about the cigar industry, prepared in in interesting
All of these plans have merit, but it is believed the first
"should be tried before the latter two. Joint advertising should be
given due consideration, after an effective indivi ial advertising
campaign has been launched by each Tampa company.
This advertising should be vig&oous and susta ned. It is
suggested that the cigar companies consult professional advertising
firms with national standing as to the type of advertising to use.
It would be a mistake to proceed without advice in~ma advertising
program and likewise a mistake to go to mediocre advertising agen-
cies. The best professional advice should be secured to help the
industry, while there is yet a possibility of reviving it.
Advertising of cigars by the Tampa companies aipht be of the
outdoor variety, with the use of signs, billboards, posters, store-
front attractions and the like. It might likewise be through the
medium of publications, such as newspapers, magazines, trade
journals, and the various periodicals that reach large groups of
potential smokers. Radio advertising should be ex ellent, reaching
millions of listeners. Displays in the showcases of retail deal-
ers are held to be most effective in influencing the choice of
consumers. A liberal program of canplimentary samples to potential
customers might bring results. These cigars would have to be dis-
tributed in packages of at least three, as a Federal statute pro-
hibits the complimentary issuance of one cigar in a sampling cam-
paign. Many other means of modern advertising are available to
-the cigar manufacturers of Tampa.
Besides individual advertising, there should be a certain
amount of joint advertising of Tampa made cigars, participated in
by the cigar manufacturers and possibly by the City of Tampa as
well. This should be in the nature.of calling the attention of
the people of America to the fine qualities of genuine Havana ci-
gars, that are made in the center of the Havana industry of this
country. No individual brands should be stressed In this type of
advertising, although the leading brands of each Tampa manufacturer
might be listed. This program should be financed largely by the
cigar manufacturers, on a pro-rata basis, based on value of output.
The City of Tampa might help in advertising the product of its
largest industry, which supports about one-third of its population.
For instance, two daily programs advertising Tampa cigars could be


sent out from the Tampa radio stations, one in the morning or
noon, and the other in the evening. A popular effort might be de
by the civic clubs of Tampa to increase the smoking of Tampa c ra
in this area and throughout the nation. The cigarmakers union
.in the city recently sent out appeals to union members through
the United States to buy Tampa cigars. This commendable effo
could be followed by similar ones by the unions, which should
helpful. Direct mail campaigns embracing lists of prominent le
throughout the country, containing the opinions of other promI t
people as to the merits of Tampa-made Havana cigars, should be
effective, as Americana are easily influenced by what well-kn
people say. If the people of Tampa get solidly behind the att t
to advertise Tampa-made cigars, it would be of great help to
cigar companies in their efforts directed toward this end.
The third form of advertising that might benefit the Tam
cigar industry could be engaged in only in collaboration with
other cigar companies in the country. This type would stress
smoking of cigars, in the attempt to increase the habit among
American people. Nothing has ever been done along this line,
it would probably be difficult to get the cigar manufacturers
agree to it. Excellent results were accomplished by the ciga e
industry through this method, which was partly responsible for
enormous increase in cigarette smoking since the World War.
To increase its sales the cigar industry needs to popular
cigar-smoking among fashionable people in the country. If the ts
at social gatherings could be induced to offer quality cigars
their guests, instead of cigarettes, it might help. If social
prominent men were seen in public smoking cigars, it might lik se
help. If the popular movie stars of Hollywood were to smoke c a
in their pictures, instead of having these show cigar smoking
by underworld characters and laborers, a great deal might be a
complished for the cigar industry. Popular radio campaign mi
likewise be conducted for this purpose. Many other means of
larizing cigar smoking in America could be used, if the cigar
manufacturers of the country would join together in this mov .
Any advertising engaged in by Tampa manufacturers should on
a sustained basis, not merely for a short period. The results
from advertising might not be realized quickly, and a suffice y
long period should be devoted to an advertising program to giv
it a fair trial.
A sensible method of financing advertising would be to se
aside a portion of the savings from plant modernization for th
Besides advertising, the Tampa cigar companies should imp e
their methods of selling. For many of the companies these are
the same as were used generations ago. Very few of the cigar
panies have up-to-date, efficient selling organizations today.
thorough reorganization of many of these is needed. A careful
study of the selling methods used by successful American compa
should be valuable in solving this problem.
The Tampa manufacturers should make their cigars longer I e
lower and medium price ranges than they are now being made,
facturers in other sections of the country are offering longer ars
for the same price as the Tampa companies. It is realized tha e
Tampa plants would face higher labor costs if this were done
the present labor scales, but some sort of arrangement should
worked out with the unions to permit the production of the sa
size cigars at the same labor cost as in competing plants. O
wise, the salesmen marketing Tampa-made cigars face a serious i-
In connection with the effective selling of cigars, there
one condition in the industry that should be corrected. Cigar.
dealers, both wholesale and retail, do not pay sufficient atte n
to keeping 'the cigars in the proper condition. They are allow
to dry out, instead of being kept moist and fresh. A high qual
cigar, selling for a high price, may prove a disappointment to


purchaser if it is stale. The manufacturer of this cigar, who
probably devoted a lot of effort to insuring its hLgh quality,
would very likely suffer from its poor condition en it reached
the consumer. Cigar manufacturers ,should pay more attention to
this merchandising problem.
4 labor Relations.
One of the things that has retarded the cigaBr industry of
Tampa has been the continual wrangling between the workers and
the employers. Points of difference between then e av ari.en con-
stantly, and instead of being settled promptly and atisfaotarily,
have been argued pro and con for weeks and months. The longer the
arguing continued the more-heated it usually beo until soon
a trivial.grievance assumed the proportions of a sjor issue in
labor relations. Prolonged battles have been foug over minor
differences that should have been settled shortly after they arose.
As an example of the time consumed in these indust al debates
over matters arising in the plant, it has been men oned that the
committee of manufacturers and workers established to settle dis-
putes held 267 meetings lasting 497 hours in the lendar year
1958. This is a situation that appears inexcusabl in any in-
dustr is recommended that minor differences arin in the el-
gar plants of Tampa be adjusted in the plants iu lately after
their occurrence. In this procedure the company d be repre-
sented by the foreman and/or other officials, and workers by the
union representative in the plant, commonly known s the "shop
collector" because he collects union dues in the p nt. Inci-
dentally, the term shop collector should be haed-to another
denoting a larger sphere of activity than merely c lleoting union
dues. This individual is the representative of th unions in the
plant, and he should have the authority to assist the settle-
ment of plant disputes, when and where the dispute occur. This
prompt settlement of differences in the plants at e time of
their occurrence should go a long way toward ell ting & major
source of friction between workers and employers.
The.question might be asked as to what proce e could be
followed in case the parties were unable to agree n the plant
concerning the settlement of the dispute. In such a situation
where the controversy could not be settled in the ilant in twenty-
four hours it should be sent to the regular empl r-employee
board set up to handle disputes. However, it is hped that a
genuine eff to settle such matters in the plant would be made.
Major isSues that might come up between the es and manu-
facturers should be settled as speedily as possible by the joint
poard establi ed for that purpose. Both of these parties owe it
to their.respe tive groups and to the industry to maintain. mica-
ble relations and adjust difficulties fairly and p aptly.
It is trusted that these differences will alw ys be settled
without recourse to any outside agency. However, o take care of
a possible situation in which an issue had not be settled, it
is recommended that any controversy between the loyers and em-
ployees in the Tampa cigar industry remaiing une tled for a
period of two weeks be referred to the United Sta~ Department of
Labor for arbitration, both sides agreeing to acce the award.
The Department of Labo should be requested to ass gn an arbitra-
tor to the case and have him prepared to take tes ony and hear
the case within two weeks from the date of the re est for arbi-
tration, his decision to be handed down as soon a er the hearings
as is practical.
Concerning the arbitrator, it is believed that both sides
should have the right to indicate their preference in advance of
his selection, and the Department of Labor should ,as nearly as
possible, endeavor to select a representative .eetsng with the ap-
proval of the respective sides. The practice of t American
A:bitration Association mi'ht be followed in regard to this. This
Association submits a panel of selected arbitrator* to the two



Irties, who agree an one, if possible. If no agreement is reaoh
ich party is inst eoted to cross out the name of ary persona
,cted to and to number the remaining ones in order of preferene
*om these remaining name the appointment is ma*e.
In the Tampa cigar industry it would be advisable to have
1 agreement providing that, pending the hearing of the case and
Le decision of the arbitrator, there should be no lockout by any
Iployer or strike called by the unions.
In connection with the proposed modernisation of the cigar
Industry of Tampa, it is believed that an agreement should be
ide providing that old workers in the plants be given preference
Sthe assignment of workers to new processes. Por their part,'
ich old workers should give full and complete cooperation to the
w processes.
The situation in the Tampa cigar plants by which the work ha
ien staggered, or spread out among more workers than are neceas
Snot satisfactory. It is not satisfactory to the workers, as 1
isults in smaller pay for them. Neither is it satisfactory to
iployers, as the surplus workers increase their costs.
It is not advocated that this practice be abolished iamediat
as this would work a severe hardship on those workers having
Ibe discharged. Neither is it advocated that the practice be
intained indefinitely. It is unsound economically, working a
rdship on both workers and employers, and should be changed as
on as it is practical to do so. As soon as these surplus emplo
s can be given positions in the cigar plants where they are
eded, or as soon as they can find employment in other industries
e practice of spreading the work in the Tampa cigar plants shou
Wage Rates.
The problem of wage rates in the Tampa cigar industry is can
red largely in the old Cartabon, or schedule of wage rates draw4
in 1910 and still used by the industry, which was explained in'
rts I and IV.
It is felt that this old price scale has outlived its useful,
as and is now a handicap to the cigar industry, instead of a
lp. No allowance is made in the Cartabon for changed economic
editions, changed production or market conditions, or any ch
the country, the community, or the industry.
No other example of an industry so restricted as to labor ra
known. It is the practice of industries in this country to ha
eir labor scales sufficiently flexible to be able to meet chang-
g conditions. Both the workers and the management benefit by I
ch a policy. The selling price of a competitive product should
ay a basic part in the determination of its labor cost. Where ;
is principle is ignored an unsound condition exists.
Cigar manufacturers in areas other than Tampa, who are can-
titors of the Tampa producers, do not have a fixed labor scale
Ke the Cariabon to contend with. The rates for individual sire ,
a be changed with changing conditions, which is an advantage to
bh workers and employers.
It is recommended that the use of the Cartabon be discontinue
the Tampa cigar industry, and in its place there be substitute
flexible wage agreement, with rates based largely on the selli
Lees of the individual cigars, consideration being given to the
sunt of labor involved. This wage scale should be'subject to
riation, in its entirety or according to the individual sizes,
mutual agreement of the manufacturers and the unions, once each
ir. This practice is followed by many large industries. New
ses should be permitted at any time with rates determined in these
goingg manner. The introduction of this rate system would be a
>at help to the Tampa cigar industry. I
Another problem.in rates in the Tampa area that needs correc-,
)n is the wide differential between the Bavana mold and shade



mold processes. This was explained in Partgs I an II ml~si. a
shown that the differential was established because the~ e
t6 discourage the use of the mold %en it came into p omine 'in
Tampa shortly after 1910, but did not have this result.
The labor requirement for Havana mold cigars ia nly slightly
greater than for shade mold, which is caused by the sade wrapper
being a little easier to work with, but there is not Inough differ-
ence to justify the present wide differential in rate. It is
recommended that the present rates for Havana mold ci ara be dis-
continued, and a new scale of rates for Havana mold fixed at
10 per cent above those for shade mold cigars.
The foregoing rccoomendations concerning wage r eas in the
Tampa cigar industry have been predicated on the ass option that -
the piece rate system for cigar making will be retained in this
Does it necessarily have to be retained? Could ot some
form of time wage scale, with stated production bra ts to protect
both worker and manufacturer, be drawn up, which would be an i-
prdvement over the piece rate system The worker wo d be assured
a stated wage by this system, and the manufacturer a niform pay-
roll. Under such a system the manufacturers could mlaerncla their
plants, install new processes and promote efficiency n every de-
partment. With a stated time wage guaranteed, the workers should
not be particularly concerned about wage rates or the modernization
of the plants. This time wage system might put an en to the dis-
putes concerning piece rates, which have plagued the ampa cigar
industry for so long.
6 Internal Economies in the Plants. r
There are a number of economies that should be pt into the
Tampa cigar plants, if these are to be operated as ef ciently as
those in other competing centers. A trip through s of the
modern cigar plants up north should convince Tampa mnfaotuea
as to the possibilities for economies in their plant i
It is recommended that every cigar manufacturer foreman
in Tampa, together with several of the moat intellige t worker in
each plant,' go on an inspection trip through the foll ing t
standing cigar plants a other areas: the two hand pntof the
American Cigar Oampaqfin Trenton, the Corona and nt and 0leo-
patra; the three hanplants of D. Mil Klein Cigar an, in-
New York,Trenton and lew Brunsawik; the long filler ne plants
of the Bayuk Cigar Company and the Consolidated Cigar Company, in
Philadelphia; and the short filler machine plants of he John H.
Swisher and Son Cigar Company in Jacksonville, and th Havatampa.
Cigar Company in Tampa. A careful inspection of all he operations
in these plants would teach them a lot about cigar manufacturing
A few improvements that are badly needed in the Tampa plants
will be treated briefly. There are others that are w11-known.
It is thought that the accounting systems used bthe oom-
panies could be improved. Each cigar company in Ta should keep
accounting records complete enough to show every ite of cost in
the business, together with production databy period classes of
cigars, processes, etc. From thase the costs of dif rent methods
of manufacture, types of cigars, and departmental operations could
be analysed carefully and compared with standard cost in the
industry to determine the relative efficiency of eac operation In
the plant. Sales by periods, territories, types of c a, and
selling methods should be carefully recorded, so th plenty of
data would be available concerning the marketing of t product.
A thorough system of accounts and records should be great value
to the Tampa cigar companies.
It is suggested that the Tampa Cigar Manufactures't.Assoo"tlion
engage a firm of certified public accountants, with lng experitaes
in cigar manufacturing accounting, to draw up a standard systit
of accounts and records for all the cigar companies i4 Tampa, and



install this in each plant.
There is no adequate check on the material used in the Tampa
plants, as was shown in Part II. The wrappers and binders are
counted when issued to the cigarmakers, but the filler is not
weighed. If there is much carelessness on the part of the Cigar-
makers in handling the filler tobacco, a serious loss can accumu-
late for the plant over a period of time.
In industrial plants of all kinds throughout the United States.
materials are checked when issued to the workmen. In northern
cigar plants all filler issued to cigarmakers is weighed. They
receive enough for a stated quantity of cigars, and if they are
careless and waste it, the matter is very evident. This results
in care being taken with the filler, as well as the wrappers and
binders. All other material issued to the workers in northern
plants is carefully checked as well. The loss from waste tobacco
is very small in these plants, whereas it constitutes a consider-
able item of cost for the Tampa plants. It is suggested that
Tampa cigar manufacturers follow the practice of weighing filler
and checking all material issued to the workers.
It would be advisable likewise to have a closer check on the.
tobacco in the processing stages. The tobacco could be handled
more carefully in the blending, stripping, and casing operAtions
in the Tampa plants. -
In the efficient cigar plants in the north when the wrappers
are stripped, the right and left hand leaves are kept in separate
pads. The rollers are trained to use either a right hand' or a
.left hand leaf. Half of them work on right hand leaves and half
on left hand leaves. In this way they acquire more speed and a
higher productivity than if they had to change constantly from
one to the other. This is simply a case of the division of labor
principle being given a practical application.
It is suggested that the plan of separating the right and left i
hand leaves and having workers roll one or the other exclusively
be followed in the Tampa plants.
It was shown in Part II that in the packing of cigars in the
Tampa plants under the old Spanish system two workers are used.
One worker, called a picker, separates the cigars into a large
number of piles by color, and the other, known as a packer, puts .
them into the boxes. This is a very elaborate and expensive pro-
cess,,as the minute subdivision of the cigars into more than fifty
piles takes much time. It is not believed that more than a handfullp
out of thousands of cigar smokers in-the United States, could tell
the difference between the majority of these shades of cigars.
It was likewise shown in Part II that another system of pack-
ing known as the American method, is used in northern plants and
by the machine plants of 'lorida. This process requires one pack-
er instead of a picker and a packer, and has a cost about one-third
that of the Spanish system. The cigars are divided first into six
piles, after which they are further subdivided by color just before
being put in the boxes. It is recommended that the Americanmethod
of packing be used in the Tampa hand plants.
The method of inspecting cigars in use in the Tampa plants is
costly. As was seen in Part II, the custom is followed of having
several special employees go around with small trucks on Which are
laced several trays on racks. At the end of each working day
these employees collect the cigars made by each workman from the
workbenches, and take them to the foreman's table for inspection.
If any cigars are defective the foreman will call this to
the attention of the workman making them on his regular round of
he cigarmaking room, which is -made the following day just prior

found the workers' benches but once a day, and then he cannot stop
t any individual worker's place but once. By this system of in-
pection, a workman could make defective cigars a day and a half .
before the foreman would examine the cigars and be allowed by
custom, to call his attention to defects in them.


an average of W400,000 annually for the past 13 years. At a ti
when the majority of the plants are barely able to keep going,
this would seem to be an unreasonable and unjustifiable expense.
It is recommended that smoking in the Tampa plants in work
hours, except in the rest rooms, be prohibited, as is done in t
northern centers. The rest room exception from the non-smoking
rule would permit employees who are addicted to smoking to have
several smokes a day without violating the rule. The workers sh d
not be permitted to make any cigars for personal consumption wi
the plant's tobacco. This non-smoking rule is advocated to reu
an unnecessary cost for the companies and to eliminate the fire
hazard in the plants.
It is likewise recommended that the present free smokers gi
to each male worker be reduced from three daily to one daily, f
several years, and then the practice be discontinued entirely. t
The one free cigar would give each worker an after dinner smoke.:-
This tapering off of the smoker practice would seem to be easier
on the worker than the immediate elimination of it, by giving him.
some time to adjust his smoking habits.
Along with the foregoing recommendation is one providing thI4
all of the Tampa cigar plants follow the practice of selling one
or two boxes of cigars to each worker at a stated time each week
at factory cost. This should permit economical smoking by the
workers who desire to do it.
There is a big contrast between the Tampa hand cigar plants
and the efficient ones up north in the matter of discipline in t
plants. In the northern plants no eating or drinking is permit
in the working rooms. Employees desiring to eat or drink during
working hours are permitted to go to the lunchroom, if there is
in the plant, or to the restrooms. Ice-cold drinks are available
to the workers, but these must not be consumed in the working ro .
The practice of drinking coffee and ice drinks, or of eating.
food at the work tables, which is permitted in certain Tampa pl ,
is to be condemned. In some instances the cigars might be stain
or discolored. The practice likewise has the tendency of react
against orderliness in the plant, and possibly of encouraging sl
enliness and careless work.
In efficient American plants the employees separate their wr
from outside diversions, giving serious attention to it while th
are on duty. This increases their productivity and likewise thel
morale and self-respect, as they feel that they are rendering an,
efficient service in return for their wages.
It is suggested that the sale of merchandise or admission t k-
tta or solicitation of any kind, be prohibited in the Tampa plan
It is felt that the discipline in the Tampa hand cigar plan
could be improved considerably, with benefit both to the workersfd
the companies.

8 Customs Appraisal of Tobacco.
The eigar manufacturers of Tampa have faced a problem for a
years in the importation of tobacco from Cuba. This is due to f ty
customs regulations, which should be changed. This situation wad x-
plained in Parts I and V of this Report.
It was seen that when Hayana tobacco is imported from Cuba, e
wrapper and filler are mixed together in the same bale, and that e
customs regulations provide that the customs inspector appraise
tobacco and determine the respective amounts of wrapper and fill in
each bale. As the import duty on wrapper tobacco is 41.20, while
that on filler is only $.28, this classification plays an import
port in determining the total duties and cost of the imported to -
co to the manufacturers.
The drastic part of the regulations which provides that wheo
as much as 35 per cent of the tobacco in a bale is appraised as
per, the entire bale takes a 100 per cent wrapper duty, has resu d



in many unfair cases of excessive taxation.
As there is only a difference of degree of te between m
per and filler tobacco, the dividing line between e two Is a que
tion of judgment. It is a matter of record that d ferent custom
appraisers have differed widely in their classific ion of wrapper
and filler tobacco. In view of the great different n the custom
rates for the two, the present practice appears to ive too much
authority to the inspectors, and permits a great quality in tax.
It is recommended that this method of apprasi imported to.
bacco be changed to a more practical and equitable system, under
which duties would be paid only on the amount of paper actually
imported, and the wrapper classification of tobacco in the matter
of quality, would correspond with trade usage.

9 Consolidation of Companies.
It is believed that there are many ways in wh Ih the Tampa
cigar plants could work together to the mutual adv ltage of all.
There are certain materials and supplies which all bhe plants need
in their operations. These might be purchased Joi ly, at a sav-
ing to all the plants. Possibly some of them could be produced
economically by the group of Tampa plants, at a o iderable sav-
ing. Tobacco might be purchased Jointly by the c anies.
Transportation costs might be materially redus by joint
shipments of cigars. Some effort has. been made to o this in re-
gard to Pacific Coast shipments. A freight car wa( sent fro Tau
to the West Coast, with permission to unload at di rent cities
en route. It was reported that a considerable sai was effected
on these shipments. This should be followed up un ila practical
method of handling Joint shipments has been worked ut for all
markets, within the regulations of the Interstate mmee CoMns
Joint credit facilities might be arranged for the Tampa cigar
companies, reducing their financing costs.
The resources of the companies might be poole4 in various way
which would be helpful and advantageous to all. t
The foregoing business cooperation should be value to all
the companies. However, it is suggested that the ntewcompany re-
lationship go further than business cooperation. is believed
that it would be definitely to the advantage of soa of the smaller
cigar plants of Tampa to have an outright consolidate ion with other
plants. Some of these smaller plants are struggle along, having
difficulty in making a small profit, or suffering loss. Their
sales have shrunk, and their production is not as tficient as it
might be, due partly to insufficient funds with which to keep thea
plant in first-class condition.
If some of these companies would consolidate, it might mean
an increase in sales, as their common sales facili les would be
increased. It might likewise mean a reduction in ] ~ uotion cost,
and increased productive efficiency, through the p oling of joint
facilities. Overhead costs would be reduced great .
Some of the Tampa cigar companies are too smn 1 for the most
economical operation. It is believed that these p nts and the
Tampa industry would be strengthened by a number o consolidations
into larger units.

10 Welfare Work.
Much could be done in the Tampa cigar plants in improving gel
eral conditions affecting health and comfort. The ventilation and
air circulation in practically all of them could b4 improved. The
lihtinG facilities in many of the plants are not es good as they
should be. Some of them present a dingy appearancI inside and it


is wondered if the interiors of the Tampa plants could not be
ed a light color, to improve their lighting mad general appeal
The seats used by the workers might be ohebked to see if they
as comfortable as they should be. Ice water should be available
all -the workers in the plants. The reatroms should be cle a
sanitary. Where it is paaetical to do so, a oompany cafeeria t
be installed in the larger plants and lunches served at cost to
Steps taken to improve the plants in the foregoing manner,
so promote the health and comfort of the worera, are urged for
humane and business reasons. Industrial workers are entitled to
satisfactory working conditions, and their work should be more
ductive under sh editions.
It is reeuendetd tbat a radio be placed in each Taspa ci
plant, with reception outlets on each floor where there are
of workers. Good musical programs could be brought to the wor
several times a day in this manner. In the plants of the Amerl
Cigar Company at Trenton, pianos are placed on the working floo
and musical selections played on each for one hour after lunch
day. It is believed the Latin cigar workers of Tampa would ap
ciate music just as much 'as the workers in Trenton,
The position of the hand cigar companies of Tampa with ref
ence to welfare work for their employees, is not the same as for
most American companies. Their workers are mostly Latins, who
strongly unionized, and in addition are members of,various Lati
clubs. Both unions and the Latin clubs render benefits to their
members, principally in the fields of recreation and social div
sion, bit also in health and athletics.
The companies could have medical clinics to examine and
the cigar workers, reading rooms, game rooms, athletic teams,
social events for them, as many American companies do, but it is
doubtful whether the cigar workers would accept these benefits.
is reported from the sources investigated that they would not.
Also, that the unions and the Latin clubs would not look with fa
upon such actions by the employers. If this is true, it is not
gested that the companies do these things. If it is not true, s
of them might be tiied.

11 Surplus Cigar Workers.

The Tampa cigar industry and the City of Tampa have a Joint
problem in the surplus cigar workers now in the Tampa district.
According to estimates made in Part V, there are 5,688 surplus a$
gar workers in Tampa.
These 5,688 surplus cigar workers constitute a big problem.
At the present time the cigar companies cannot employ any more of
them because of the state of their business. It is possible that
with the modernization of their plants resulting in reduced cost
and increased advertising and sales efforts, the business of the'
plants would tend to increase. This would mean more Jobs for sa
of the workers. However, it is not believed that the cigar com-
panies of Tampa will be able to give employment to all of the su
plus cigar workers for many years to come, if at all. A trend
toward semi-mechanization of part of the Tampa cigar industry an4
complete mechanization of part of it is looked for. If the ciga.
workers would learn the semi-mechanized processes, and be recon- 1
ciled to them, there might be steady work at good pay for number
of the old workers in the years to come. If they are unwilling to
do this, the unemployment situation will grow worse.
Very few apprentices are being trained in the plants, so the:
total number of cigar workers is gradually decreasing. The young
Latin boys and girls are going into other lines.
It is suggested that facilities be provided to train the
young Latin boys and girls in trades and vocations. It has been
mentioned in Part V that at the present time there is one indus-

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