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Tobacco Industry
TOBACCO INDUSTRYTOBACCO INDUSTRY. Tobacco in the form of leaf, snuff, chew, smoking tobacco, cigars, and factory-made cigarettes has often been called the United States' oldest industry. Since its introduction to Europeans by American Indians, no other agricultural crop has been more thoroughly entwined with the history of the United States than the growing, processing, and manufacturing of tobacco. In addition, no one product has enjoyed deeper ties to the colonization of the New World and to the expansion of international trade between the New World and Europe, Asia, and the Middle East over the last four centuries. The prospect of farming tobacco and selling it to England brought the earliest British colonists to Virginia and Maryland, and at the end of the twentieth century U.S. companies such as Philip Morris and RJR Nabisco continued to dominate the international cigarette market and stood among the most profitable transnational corporations. U.S. tobacco growing, manufacturing, distribution, marketing, and sales contributed $15 billion in wages to some 660,000 American workers. For many centuries tobacco has been identified with the New World, especially the United States. In the form of the mass-produced cigarette, U.S. tobacco became the virtual international symbol of American modernity. Indeed, students of the industry have argued that the advent of machine-made cigarettes in the 1880s helped inaugurate in the United States the modern era of mass consumer products, mass advertising and promotion, and the professionally managed modern corporation. However, the last half of the twentieth century saw the U.S. tobacco industry come under pressure from the demonstrated health hazards of smoking and the subsequent steady decline in smoking in the United States and other highly industrialized nations. In response, the industry aggressively pursued expanding into markets in Asia, Eastern Europe, and Africa, prompting the World Health Organization to accuse tobacco manufacturers of fomenting a tobacco epidemic. Equally worrisome for the industry, at century's end the growth of class-action lawsuits, the publication of documents revealing corporate manipulation of the political and legal process and the willful distortion and suppression of scientific findings, and the rise of government antitobacco measures further clouded the future of the domestic tobacco market. Cigarette makers faced the prospect of being demoted to the status of a rogue industry in the eyes of U.S. citizenry. Early History: Production and ConsumptionMost modern tobacco consumption derives from Nicotiana tabacum, which is a species of nightshade plant. The general consensus is that the tobacco plant originated in South America and was spread by American Indians to North America and the South Pacific and Australia. The arrival of Europeans in the New World introduced them to tobacco, and by the early seventeenth century commercial tobacco became a driving force of colonization in North America and the Caribbean. The Jamestown colony in Virginia owed its very survival to tobacco. A cash crop requiring very intensive labor from planting to harvesting to curing, its cultivation created a demand for conscripted labor, first in the form of indentured European servants on family farms and soon afterward in the form of African slave labor on large landholdings. Two types of tobacco leaf were grown, principally for pipe smoking and, later on, snuff. They were both dark varieties: the more expensive leaf grown in Virginia and the stronger, cheaper orinoco leaf grown in Maryland. In England, demand for tobacco rapidly grew and by 1628 the Chesapeake colonies exported 370,000 pounds annually to England, procuring substantial tax revenues for the state, which overcame early Crown hostility to tobacco cultivation and consumption. Tobacco farming spread quickly to North Carolina, South Carolina, Kentucky, Tennessee, and Georgia. It also extended to two other regions in which cigar (Cuban) leaf cultivation would come to dominate in the nineteenth century: the Northeast (Pennsylvania, New York, Connecticut, and Massachusetts) and, later, the Midwest (Ohio, Illinois, Wisconsin, Minnesota, and Missouri). In 1700 exports of raw leaf from the British Chesapeake colonies reached 37 million pounds and by the outbreak of the American Revolution in 1776 upward of 100 million pounds. At the end of the eighteenth century, the main producers of tobacco were the United States, Brazil, and Cuba. After a decline following the American Revolution, U.S. production rebounded, but only slowly due to the Napoleonic Wars (1799 through 1815) and the War of 1812. Production then rose sharply to 434 million pounds in 1860 and, after a drop due to the Civil War, resumed its growth, averaging 660 million pounds in 1900 through 1905, of which one-half was consumed domestically. From 1945 to the 1980s, U.S. annual production averaged two billion pounds. Throughout most of their history, Americans overall and men in particular remained the heaviest consumers of tobacco worldwide, principally in the form of chewing and smoking tobacco. Europeans consumed tobacco by smoking it in clay pipes until the eighteenth century, when manufactured snuff became dominant starting in Spain. While chewing tobacco was rare in Europe, it was quite popular in the United States among men and remained so up to the early twentieth century. Pipe smoking was also popular among men and some women in the nineteenth century Women also used snuff. It was taken by New York society women and by women of all classes in the South. In Europe, pipe smoking made a comeback in the nineteenth century at the expense of snuff, but was soon forced to accommodate the new vogues for cigar and cigarette smoking popular both there and in North America. These shifts in consumption patterns stemmed in part from the development in the nineteenth century of new, lighter leaves of the bright and the burley varieties, which were more suitable for chewing and cigarette smoking and competed with the dark leaf grown in Virginia and Maryland. By the end of the nineteenth century, the bulk of U.S. tobacco production had shifted away from low-lying areas of Maryland and Virginia to the Virginia–North Carolina Piedmont region and to Kentucky, where the bright and the burley varieties flourished. By 1919 bright accounted for 35% of the U.S. tobacco crop, burley for 45%. Industrializing Tobacco and the Rise of the CigaretteUntil 1800 tobacco manufacturing proper was largely carried out in Europe. Initially, U.S. factories were dispersed in the tobacco-growing regions of Virginia, North Carolina, Tennessee, Kentucky, and Missouri, which used slave labor. New York, a center of snuff production, was the exception. Manufacturing of tobacco also thrived among planters who prepared tobacco for chew. After the Civil War, the introduction of steam-powered shredding and cigarette machines and pressures stemming from the rise of national markets led to the concentration of tobacco manufacturing in that sector. Cigar manufacturing underwent a similar evolution somewhat later. Cigars first became popular in the United States after the Mexican-American War, and their manufacture was fairly dispersed in cigar leaf-growing regions. However, by 1905 the greatest centers of cigar manufacturing were Philadelphia, New York, Boston, Cincinnati, Chicago, Baltimore, Richmond, Tampa, and Key West. In the United States, the convenience and simplicity of smoking cigarettes made from the bright variety of tobacco was discovered by Union and Confederate troops alike during the Civil War. Ready-made cigarettes using mixtures of bright and burley tobacco allowed U.S. manufacturers to develop cheaper brands. U.S. cigarette production boomed between 1870 and 1880, rising from 16 million cigarettes (compared to 1.2 billion cigars) annually to over 533 million, reaching 26 billion by 1916. The growth of the U.S. population between 1880 and 1910 and the decline of chewing tobacco due to anti-spitting ordinances further expanded the market for cigarettes. With this growth arose new aggressive methods of packaging (striking colors, designs, logos, brand names), promoting (gifts, picture cards, free samples, discounts and rebates to jobbers, retailers, etc.), and advertising (newspapers, billboards, posters, handbills, endorsements) cigarettes to an emerging national market. In 1881 James Bonsack patented a new cigarette-making machine that turned out over 120,000 cigarettes per day. Until then, factory workers rolled up to 3,000 cigarettes a day. The Bonsack machines made the fortune of James B. Duke, who adopted them in 1884. By securing exclusive rights over Bonsack machines and devoting 20% of his sales revenues to advertising, Duke helped create a mass national market, which he soon dominated. By 1889 W. Duke and Sons had become the world's leading manufacturer of cigarettes, with 40% of the U.S. market. That same year Duke pressured his rivals into forming the American Tobacco Company with Duke as president. The trust did not own any tobacco farms, and employed its considerable leverage to depress the price of tobacco leaf. This unequal relationship to the detriment of growers reached a crisis point forty years later during the Great Depression, necessitating the tobacco price support program of 1933—still in place at the end of the twentieth century—which rescued tobacco growers, many of them tenant farmers, from certain ruin. The trust also proceeded to absorb important rivals as well as manufacturers of chew, snuff, smoking tobacco, and cigars including R.J. Reynolds, P. Lorillard, Liggett and Myers, the American Snuff Company, and the American Cigar Company. The geometric increase in cigarette production spurred the trust to make a major innovation in modern corporate practices: to seek outlets in foreign markets (not controlled by state monopolies), often by buying local companies outright (United Kingdom, Japan) and later by setting up factories abroad (China). American Tobacco Company's incursion into Britain provoked British companies to form a cartel, Imperial Tobacco. In turn, in 1902 Imperial Tobacco formed a joint company, but with minority interest, with American Tobacco called the British-American Tobacco Company (BAT). Together the U.S. and U.K. cartels exploited overseas markets while withdrawing from each other's domestic market. At the turn of the century, upward of one-third of the U.S. trust's cigarettes were exported and 54% or 1.2 billion were exported to China alone. By 1910, the year before its demise, the trust accounted for 75 percent of U.S. tobacco production of all kinds. In 1911, the Supreme Court found the American Tobacco Company in violation of the Sherman Antitrust Act and ordered its breakup into four major companies: the American Tobacco Company, Liggett and Myers, R.J. Reynolds, and P. Lorillard. In 1900 machine-made cigarettes still accounted for only 3 to 4 percent of U.S. tobacco leaf production. Their greatest growth lay ahead: by 1940 the figure had risen to 50 percent (or 189 billion cigarettes) and by 1970 to 80 percent (or 562 billion cigarettes). In 1913 the newly independent R.J. Reynolds launched Camels, the "first modern cigarette." An innovative blend of burley and Turkish tobacco backed by a massive publicity campaign, Camels were quickly imitated by American's Lucky Strike and Liggett and Myers' revamped Chesterfield cigarettes (in 1926 Lorillard jumped in with its Old Gold brand). All three brands stressed their mildness and catered their appeal to men and women alike. Between them the three brands enjoyed 65 to 80 percent market share through the 1940s. The 1920s saw the "conversion" of many tobacco consumers to the cigarette in the Unites States, United Kingdom, Europe, China, and Japan. Between 1920 and 1930, U.S. cigarette consumption doubled to 1,370 cigarettes per capita. Smoking and HealthAs in the previous century, war was to prove a boon to U.S. tobacco, especially cigarettes. The rations of American soldiers and sailors included tobacco. With each world war, U.S. consumption of tobacco jumped and that of cigarettes soared, leaping 57 percent between 1916 and 1918 and 75 percent between 1940 and 1945. Per capita consumption in the United States reached almost 3,500 per year by 1945, a rate matched only by the United Kingdom and Canada. It would be twenty years before nations in continental Europe and East Asia would achieve similar rates. By 1955 in the United States, 57 percent of men and 28 percent of women smoked. A veritable culture of cigarette smoking had arisen. It was a culture of glamour, style, and modern individualism featured and promoted in fashion magazines and Hollywood films It would appear that the widespread movement by women to adopt cigarettes began prior to advertising campaigns actively directed at them and coincided with the culmination of the suffragette movement's drive to obtain the right to vote. Commentators openly associated cigarettes with women's emancipation. Estimates vary, but by 1929 around 16 percent of women smoked cigarettes, a figure that rose to 25 to 35 percent in the late 1940s and peaked at around 30 to 35 percent in the early 1960s. Ever since King James I's denunciation of tobacco in the seventeenth century as detrimental to one's health and character, tobacco had been the object of recriminations by politicians, religious leaders, heads of industry, and social commentators. At the very moment cigarettes took off as a popular consumer product in the 1880s and 1890s, antismoking crusaders were waging successful campaigns banning the sale or consumption of tobacco in seventeen states, but their success was short-lived: World War I undid most of the legislation. Prior to World War II, cases of lung cancer were relatively rare in the United States, the United Kingdom, and Canada, the heaviest-smoking countries, but rates in men were rising fast, prompting medical researchers to initiate the first statistical studies of the disease. Results of early studies in the United States and the United Kingdom appeared in 1950 just as the Federal Trade Commission was castigating the tobacco industry for making false health claims for their products. Reports of other studies followed over the next two years resulting in a health scare that precipitated a temporary 10 percent drop in consumption. The industry responded in two ways: by promoting filtered-tipped cigarettes (42 percent of all cigarettes by 1956 through 1960) and mentholated brands, which they claimed to be less harsh and harmful; and by questioning the validity of the studies, a tactic it would pursue with each unfavorable new scientific finding up through the 1990s, especially through its Council for Tobacco Research and the industry's lobbying arm, the Tobacco Institute. Meanwhile, tobacco in the United States, as in many countries, because of its economic importance, the substantial tax revenues it contributed to federal and state coffers ($3 billion in 1964 and $13.4 billion in 1998), and its campaign contributions, benefited from its special status as neither a food nor a drug and thus escaped formal government regulation as to its effects. Under pressure from health organizations, the government published in 1964 a landmark report of the Surgeon General warning the American public of the dangers of smoking. It was the first in a long series of Surgeon General reports that reviewed existing studies on tobacco-related diseases and, beginning in the 1980s, on women and smoking, nicotine addiction, modified cigarettes, cessation, secondhand smoke, youth initiation, and smoking among racial and ethnic minority groups. The political and economic picture of the domestic market for the tobacco industry had changed. In 1965, the industry had to work vigorously to keep the new cigarette warning labels watered down, and in 1970 the industry withdrew all radio and television ads voluntarily in order to eliminate free broadcast time awarded by the Federal Trade Commission starting in 1967 for antismoking public service announcements. Segregation of smokers in airplanes and other forms of public transportation began in 1972 and was extended to public buildings in Arizona (1974) and Minnesota (1975). New studies on the dangers of secondhand smoke in the 1980s and 1990s galvanized the anti-smoking movement to pressure federal, state, and local governments to ban smoking completely in public buildings, public transportation, stores, theaters, and schools, establish smoking sections in workplaces and restaurants, and, in the case of California, ban smoking in all indoor public areas including workplaces, restaurants, and bars. U.S. cigarette consumption began to decline. Men's and women's rates had already dropped from 52 and 34 percent, respectively, in 1965 to 44 and 32 percent in 1970 and to 38 and 29 percent by 1980, respectively. By 1990, the rates had dropped precipitously to 28 and 23, respectively, and by 1999 to 26 and 22 percent. Per capita cigarette consumption peaked in the early 1970s at around 4,000 and steadily dropped from 1980 (3,850) to 1999 (2,000). Meanwhile, tobacco-related diseases (lung cancer, emphysema, coronary heart disease, stroke) became the leading preventable causes of death—over 400,000 deaths in 1990. For women, the number of deaths due to lung cancer surpassed those due to breast cancer in 1987. Industry adjusted by offering low-tar and nicotine cigarettes (a 40 percent drop in yields between 1967 and 1981), cheaper brands, and promotion gimmicks such as coupons and giveaways and by opposing systematically growing legal challenges. In a changing market, one company that rose to preeminence was Philip Morris, thanks to its innovative marketing. Its market share surpassed that of previous leader R.J. Reynolds in 1983, and it also took the lead in industry sponsorship of cultural institutions, concerts, and national sporting events. To cover declining U.S. sales, it exploited a traditional outlet for U.S. cigarettes somewhat neglected since World War II: over-seas markets. With the help of the U.S. Trade Representative and North Carolina Senator Jesse Helms in 1986, Philip Morris, along with R.J. Reynolds, forced open East Asian markets previously dominated by state monopolies, and in the 1990s snapped up privatized state-run companies in former communist countries in Eastern Europe. By the end of the century, Philip Morris held 50 percent of the U.S. cigarette market followed by R.J. Reynolds (23 percent), Brown & Williamson (12 percent), and Lorillard (10 percent). Although faced with a changing market, leading U.S. cigarette manufacturers remained among the nation's most profitable companies. In the 1980s and 1990s they repositioned themselves by diversifying into the beverage and food industry (Nabisco, Kraft Foods), blurring their corporate identities. In 2002 Philip Morris executives proposed renaming the parent company from Philip Morris Companies, Inc., to Altria Group, Inc. The threat of successful lawsuits resulted in the Master Settlement Agreement signed on 23 November 1998 with forty-six states attorneys general. This agreement stipulated payment of $206 billion to states over twenty-five years, reigned in industry promotion practices, especially those targeting youth, and provided $5.5 billion over ten years in aid to vulnerable tobacco growers. To cover the settlement's costs the industry increased prices forty-five cents per pack and Philip Morris announced a 16 percent cut in its U.S. workforce. Down from a high of 75,000 in 1955, in 1990 cigarette manufacturing in the United States directly employed 41,000 people; the number dropped to 26,000 by 1999. In 1999 through 2000, debt-ridden RJR Nabisco sold off its overseas tobacco operations to Japan Tobacco and its food products company to Philip Morris, and spun off its domestic tobacco operations as R.J. Reynolds Tobacco. Finally, at decade's end India had moved ahead of the United States in total leaf and cigarette production (behind China), and the United States fell behind Brazil and Zimbabwe in the export of tobacco leaf while remaining ahead of the United Kingdom and the Netherlands in cigarette exports. U.S. tobacco leaf production, exports, and employment are expected to continue to fall as domestic consumption declines and as productivity, competition from cheaper foreign leaf, and the growth in off-shore manufacturing by U.S. companies increase. BIBLIOGRAPHYBrandt, Allan M. "The Cigarette, Risk, and American Culture." Daedalus 119 (1990): 155–177. Centers for Disease Control and Prevention. Tobacco Information and Prevention Source. Available at http://www.cdc.gov/tobacco. On-line access to U.S. data including Surgeon General reports. Cox, Howard. The Global Cigarette. Origins and Evolution of British American Tobacco 1880–1945. New York: Oxford University Press, 2000. Glantz, Stanton A., John Slade, Lisa A. Bero, Peter Hanauer, and Deborah E. Barnes. The Cigarette Papers. Berkeley: University of California Press, 1996. Goodman, Jordan. Tobacco in History: The Cultures of Dependence. New York: Routledge, 1993. Most complete international history. Jacobstein, Meyer. The Tobacco Industry in the United States. New York: Columbia University Press, 1907. Reprint, New York, AMS, 1968. Important early statistics. Klein, Richard. Cigarettes Are Sublime. Durham, N.C.: Duke University Press, 1993. The significance of cigarettes in modern culture. Kluger, Richard. Ashes to Ashes: America's Hundred-Year Cigarette War, the Public Health, and the Unabashed Triumph of Philip Morris. New York: Knopf, 1996. Prize-winning history of U.S. industry's marketing and political strategies. Parker-Pope, Tara. Cigarettes: Anatomy of an Industry from Seed to Smoke. New York: New Press, 2001. Lively short account. Rabin, Robert L., and Stephen D. Sugarman, eds. Regulating Tobacco. New York: Oxford University Press, 2001. Recent U.S. developments including the 1998 Master Settlement Agreement. Robert, Joseph C. The Story of Tobacco in America. Chapel Hill: University of North Carolina Press, 1967. Schudson, Michael. "Symbols and Smokers: Advertising, Health Messages, and Public Policy." In Smoking Policy: Law, Politics, and Culture. Edited by Robert L. Rabin and Stephen D. Sugarman. New York: Oxford University Press, 1993. Tobacco Control Archives. Available at http://www.library.ucsf.edu/tobacco. Important review of secret industry documents. RoddeyReid See alsoAmerican Tobacco Case ; Tobacco and American Indians ; Tobacco as Money . |
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Cite this article
"Tobacco Industry." Dictionary of American History. 2003. Encyclopedia.com. 1 Jun. 2012 <http://www.encyclopedia.com>. "Tobacco Industry." Dictionary of American History. 2003. Encyclopedia.com. (June 1, 2012). http://www.encyclopedia.com/doc/1G2-3401804215.html "Tobacco Industry." Dictionary of American History. 2003. Retrieved June 01, 2012 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3401804215.html |
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Tobacco Industry
Tobacco Industry. Few commercial enterprises have had more economic, social, and medical impact, and provoked more political and cultural debate than the tobacco industry. Tobacco, long cultivated and cured by North American Indians, was first transported to Europe by Christopher Columbus. Cultivation by English colonists began in Virginia in 1612, when John Rolfe planted the first crop. Tobacco exports—limited to England or English colonies by the Navigation Act of 1660—proved crucial to the Chesapeake region's economy throughout the Colonial Era. In 1770, North American growers exported more than £900,000 worth of tobacco to England. The spread of tobacco culture was also intimately linked to the growth and expansion of slavery.
Tobacco remained vital to the South's economic well‐being in the early national era, as production expanded to supply a growing export market and to meet Americans' own fondness for snuff, pipe tobacco, chewing tobacco, and cigars. As tobacco cultivation spread westward into Kentucky and Tennessee, annual output increased from 110,000 to 160,000 hogsheads in the years 1790–1860. The origins of the modern tobacco industry, characterized by the mass production and mass marketing of tobacco products—including the increasingly popular cigarettes—dates to 1865, when Washington Duke started a fledgling tobacco manufactory in Durham, North Carolina. Duke's enterprise flourished as a manufacturer of plug and chewing tobacco, but it was his son, James Buchanan Duke (1856–1925), who took over W. Duke and Sons in the 1880s, who built a financial empire that soon dwarfed all other tobacco companies. The pivotal moment came in 1884 when James Duke secured exclusive rights to a machine developed by Virginian James A. Bonsack that could mass‐produce cigarettes. While cigarette manufacturing had been an expensive and time‐consuming enterprise involving hand rollers, a single Bonsack machine could produce over 100,000 cigarettes a day. In 1889, Duke organized the five largest U.S. tobacco enterprises—W. Duke and Sons, Kinney, Allen and Ginter, William S. Kimball, and Goodwin and Company—into the mammoth American Tobacco Company (ATC), originally capitalized at $25 million. Duke became its first president. Acquiring or driving out of business over 250 tobacco manufacturers over the next decade, the ATC by 1907 was one of the world's most powerful industrial monopolies, now capitalized at $450 million and producing nearly 80 percent of the world's plug and twist tobacco, 71 percent of smoking tobacco, and over 96 percent of snuff tobacco. Duke pioneered in turning a portion of his profits back into the mass marketing of his major brands. For tobacco farmers, particularly those in Virginia, North Carolina, and Kentucky, Duke's methods and market dominance resulted in prices that were well below the cost of production. Thousands of small family farmers were forced into poverty and chronic indebtedness. While farmers in central Kentucky organized a successful strike in 1908 against the ATC and ultimately forced Duke to pay higher prices, the ATC's firm control of the entire tobacco industry continued until the U.S. Supreme Court, in a 1911 antitrust case, split the tobacco giant into several smaller companies, including Liggett and Myers, Lorillard, and R.J. Reynolds. Despite periodic reform campaigns to curtail or prohibit cigarettes, smoking by World War I had become nearly ubiquitous, and its popularity increased as Hollywood began portraying cigarettes as glamorous. Ads even spoke of cigarettes' beneficial health effects in promoting endurance and reducing nervousness and throat irritation. A new generation of industry leaders emerged, such as the ATC's George W. Hill who orchestrated a highly successful marketing campaign for Lucky Strike cigarettes, launched in 1917 to compete with R.J. Reynolds' Camels. While the industry enriched its executives and stockholders, many tobacco growers remained impoverished. Plummeting agricultural prices during the Depression of the 1930s further damaged the tobacco economy of the rural South. In 1933, congressional leaders from tobacco‐producing states succeeded in including tobacco in the Agricultural Adjustment Act, which established a price support system for agricultural commodities in exchange for production limits. Tobacco use continued to increase after World War II. By 1964, 42 percent of adult Americans smoked cigarettes. In that year, however, confirming what many had long suspected, a U.S. Surgeon General's report established the relationship between smoking and cancer. Although the industry strongly denied any such link, health warnings were added to cigarette packages, and cigarette advertising on television was halted. Nevertheless, despite the growing concern about cancer and heart disease risks, the tobacco industry flourished in the 1970s and 1980s. Industry giants such as Philip Morris and R.J. Reynolds promoted their leading brands aggressively and sought new areas of acquisition and market development, particularly in the consumer‐friendly food and beverage sector. Shrewd marketing campaigns designed to counter the negative publicity made the rugged “Marlboro Man” and the cartoonish “Joe Camel” cultural icons. Despite mounting medical and scientific evidence linking tobacco and disease, industry leaders continued to insist that no such link had been positively established. They also denied the additional charge that nicotine (a central component of tobacco) was physically addictive. By the 1990s, however, company insiders released numerous internal documents revealing that major tobacco manufacturers had long been aware of tobacco's health risks and its addictive nature, and had initiated advertising campaigns to encourage youth smoking. Its credibility severely damaged, the industry moved in the late 1990s to offset further possibly bankrupting legal challenges by agreeing to a settlement with forty‐six state attorneys general totaling $206 billion. But many issues remained, such as whether Congress would empower the Food and Drug Administration to regulate nicotine as a drug; whether the controversial tobacco price‐support system would survive; and how the numerous existing lawsuits by dying smokers and their families would finally be resolved. The tobacco industry's devastating toll on countless users of its products, and the grinding long‐term poverty of small‐scale tobacco farmers, are part of the legacy of America's long love affair with tobacco. But although embattled on many fronts, the industry remained an economic behemoth, and tobacco a vital agricultural commodity, as the twentieth century ended. The leading U.S. tobacco company, Philip Morris, manufacturer of Marlboro cigarettes, enjoyed 1998 revenues of $57.8 billion, and was the nation's eighth largest corporation. (Non‐tobacco subsidiaries accounted for part of this revenue.) Global markets beckoned as well, especially in poorer nations, and U.S. cigarette exports in 1998 totaled nearly $4.2 billion. See also Agriculture; Disease; Factory System; Foreign Trade, U.S.; Industrialization; Medicine: Since 1945; Navigation Acts; New Deal Era, The. Bibliography Nannie May Tilley , The R.J. Reynolds Tobacco Company, 1985. Tracy Campbell |
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Cite this article
Paul S. Boyer. "Tobacco Industry." The Oxford Companion to United States History. 2001. Encyclopedia.com. 1 Jun. 2012 <http://www.encyclopedia.com>. Paul S. Boyer. "Tobacco Industry." The Oxford Companion to United States History. 2001. Encyclopedia.com. (June 1, 2012). http://www.encyclopedia.com/doc/1O119-TobaccoIndustry.html Paul S. Boyer. "Tobacco Industry." The Oxford Companion to United States History. 2001. Retrieved June 01, 2012 from Encyclopedia.com: http://www.encyclopedia.com/doc/1O119-TobaccoIndustry.html |
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