Chapter 4: The Golden Age of Malarkey Summary

R.J. Reynolds's successors at R.J. R.J. Reynolds Tobacco Company ran the company with detailed, but not necessarily inspirational, leadership. While American Tobacco Company's Lucky Strikes moved closer to overtaking its Camel brand, R.J. R.J. Reynolds tried many ad campaigns, most which were soon emulated by its competitors. In 1931, with low leaf supply costs and large profit margins, R.J. R.J. Reynolds, under the management of Clay Williams, ordered a price increase from fourteen to fifteen cents per pack. Given the state of the economy in the depression, it created very bad publicity for the company.

Amazingly, its two main competitors, American and Lorillard, also raised their prices to match. This allowed many smaller bargain brands to gain a large market share with ten-cent packs. The Roosevelt Administration...