Manufacturing of many kinds of products in the 

 colonies increased tremendously with the exit of Crown 

 influence. Ten years after the Treaty of Paris, one 

 Samuel Russell of New York City, went on record with 

 information on behalf of the city's manufacturers: 

 The price of tobacco by the hogshead, in New 

 York, is four pence one farthing per pound. . . . 

 This is cash; no credit ever being given on leaf 

 tobacco in any part of America. The expense of 

 work is two pence three farthings per pound, 

 on what is called spun or plug tobacco— only 

 two-thirds of the leaf, on an average, can be 

 made into this kind of tobacco. The loss in 

 stems and dirt will amount to one pennif per 

 pound. Every pound of good plug tobacco, 

 therefore, costs the manufacturer eight-pence 

 per pound; and the general selling price is 

 nine-pence. . . . This leaves a profit to the 

 manufacturer of twelve and a half per cent out 

 of which he must pay shop-rent and be sup- 

 ported. The remaining one-third is made into 

 the coarser kinds. . . . The profits on this part 

 are not far from thirteen per cent. 

 From this report, it is obvious that at the time, plug 

 tobacco, which could be used for smoking or chewing, 

 was becoming more popular and snuff was declining in 

 importance. 



Meanwhile, Pierre Lorillard II and his brother 

 George formed a tobacco company-P & G Lorillard. 

 The business expanded rapidly. In 1843 Pierre III took 

 over and changed the name of the company to P. Loril- 

 lard. Principal products manufactured were smoking 

 and chewing tobacco. P. Lorillard's company was to 

 become one of several giant firms involved in some of 

 the fiercest business competition American commerce 

 has ever known. 



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