Salt Lake Telegram | 1932-04-16 | Page 11 | Is "Cig" Demand near Saturation?

Is Cig Demand Near Saturation SaturationS S NEW YORK April Apri 16 Despite Despie indicated indicted lower raw material costs cost for the current year rear the advantage of the price increase instituted in inJune inJune i June Junc 1931 and the possibility of additional additional ad ad- economics being realized through increased ed plant efficiency and td curtailed advertising tics ies producers may report somewhat smaller earnings for 1932 as a result resul of or diminished volumes says the Standard Statistics company of New York in a current survey which follows in m part We expect in ui fact that consumption for the first half hal of this year will wi register a comparative dc de de- de dine closely cosely approximating the te 10 per percent percent cent recession recorded for the last las six months of 1931 1931 Any increase m in the federal tax moreover would act as a further earnings depressant either through diminished volumes or narrowed profit margins Even should the cig cg aret arct tax bill bi be b defeated the present wholesale price structure cannot be considered as entirely secure A reduction ic re- re- re ducton to the former 60 level however would act to depress profits profs only temporarily probably and un undoubtedly undoubtedly un- un u. u would go far toward reversing reversing re the downward trend of cig ciC arct aret consumption From the strictly long term vIewpoint viewpoint view vIew- point we believe beleve that expansion potentialities po po- po still remain to be devel aped in the field during a ape pe pe- pe nod of more favorable general Jeneral business busi busl ness conditions and that the saturation batura tion ton point in consumption by byno byno byno no means was reached even in the tile record years 1929 1930 1929 1930 Hence il it i is not difficult to visualize the ultimate attainment of earnings levels materially ma ma- heretofore higher than any witnessed