- 7 - 



consumed, and contract work. Expenditures for new machinery and equipment, new 

 structures and additions to plant were $6 million. 



There were 98 establishments with paid employees in Puerto Rico in 19' 

 The vast majority were small enterprises. About 90 percent had fewer tha. 

 employees; these accounted for less than 10 percent of all employees and for 

 only 3 percent of value added by manufacture. One establishment had fewer tnan 

 50 employees, one had between 100 and 24-9 employees, and one had over 500 em- 

 ployees. The three establishments (the last two presumably representing the 

 branch factories of a large U. S. firm) together accounted for nearly $0 percent 

 of all employees and 97 percent of the value added by manufacture. 



The principal market of the cigar industry in Puerto Rico is the mainland 

 United States. Of the $11-5 million worth of products sold in 1953, about $10-5 

 million worth was shipped to the United States, and approximately $1 million 

 worth was sold in Puerto Rico. Sales to foreign countries were negligible. 



Cuban Tobacco Content of Cigars 



Generally, U. S. cigars are a blended product of several types and kinds 

 of tobacco. In recent years, the U. S. cigar manufacturing industry (mainland 

 and Puerto Rican factories and bonded manufacturing warehouses) has shipped 

 about 7 billion cigars and cigarillos annually. Approximately 4.7 billion — 

 about two -thirds of the total — contained Cuban tobacco to a widely varying de- 

 gree. Most by far had a blended filler, reconstituted binder and domestic 

 shade-grown wrapper. The principal exceptions were the "clear Havana" cigars 

 (100 percent Cuban tobacco) and the predominantly "Havana filler" cigars. 



Cigar firms making "clear Havanas" rely on Cuban tobacco for the entire 

 cigar (filler, binder, and wrapper), and manufacturers of predominantly "Havana 

 filler" cigars rely on Cuban tobacco for all or nearly all the filler portion 

 of the cigar. It is estimated that around 67O million — nearly a tenth of all 

 cigars sold — are "clear Havanas" or predominently "Havana filler" cigars. These 

 two groups of cigars probably absorbed about 4-5 percent of the Cuban tobacco 

 used by the U. S. industry. 



Cigar firms making "blended filler" cigars that contain Cuban tobacco 

 blend It mainly with Pennsylvania or Puerto Rico tobacco. It is estimated that 

 about k billion — approximately 57 percent of all cigars and cigarillos sold — 

 have a "blended filler" with varying quantities of Cuban tobacco in the k 

 The quantity of Cuban tobacco used in these cigars varies considerat I end- 

 ing on the size of the unit and its intended retail price. The quantity of 

 Cuban tobacco used in cigars in the higher price range is, of cou: :der- 

 ably greater than that used in cigarillos and the intermediate -si ze cigars. It 

 is estimated that there were about 2 billion cigars with Cuban toba the 

 blend which sold at 10 cents apiece or higher and that they ab.> 

 percent of the Cuban tobacco used by the U. S. cigar in 

 billion cigars and cigarillos using Cuban tobacco sold at less t:-.a:. 

 apiece and accounted for the remaining 19 percent of the 

 the industry. 



For cigars retailing at 10 cents and higher, Cuban tobacco generally com- 

 prises 20 to 50 percent of the blended filler. Of the ntaini: 

 tobacco and selling at less than 10 cents apiece, cigarii 



