The R.J. Reynolds Tobacco Company

By Nannie M. Tilley | Go to book overview

CHAPTER 6
A National Product and Financial Stability

The R. J. Reynolds Tobacco Company of New Jersey began operations in 1899 apparently in complete agreement with the plans of the Tobacco Combination, whereby the Reynolds company, except for a few slowselling brands of smoking tobacco, was limited to the production of flatplug chewing tobacco. As the years went by and R. J. Reynolds became more concerned with the increasing popularity of smoking tobacco compared with chewing tobacco, he determined to begin the manufacture and sale of smoking tobacco--if possible, on a national scale. Not wishing to be left merely as the producer of flat plug, Reynolds developed five new brands of smoking tobacco, at least one aimed at a national market. Success with Prince Albert smoking tobacco may well be regarded as a turning point in the company's history. This had been accomplished by 16 November 1911, when the old American Tobacco Company received its final notice of dissolution from a U.S. circuit court. This should not be interpreted to mean that the R. J. Reynolds Tobacco Company failed to profit from its years in the Tobacco Combination; it had profited both because of and in spite of the American Tobacco Company.


Prince Albert: A National Product

Reynolds's entry 'into the smoking tobacco business apparently took on new life in 1904, which saw his production virtually doubled over that of the previous year. The increase in the consumption of chewing tobacco, he declared in 1909, had by no means kept pace with the output of

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