Aside from the T202's, another great pre-war example of an item damaged in its distribution would be the white version, S-74 silks that originally came with a paper advertisement attached to their backs. These were then folded over when put into the cigarette packs so that virtually every silk you find that still has the advertising back attached has a big fold in the middle.
For whatever reason though, PSA does not grade the silks at all. Probably more so because the silks are material that can easily fray, and if there are creases, they can be easily ironed out if there is no paper backing still attached. They would have to come up with unique grading criteria and because it is just the one issue, likely didn't want to bother.
SGC and BVG do grade them (as did GAI when they were still in business) but, their grades don't always make sense for the silks with the paper backing still attached. The vast majority of graded silks are in SGC holders so, I haven't really seen enough BVG (or GAI) graded silks to form a good opinion as to their grading standard and critieria in regards to this particular issue. As for SGC, it appears that they do take the creases into consideration to some extent in grading the silks as you never see any that have the usual crease in the paper backing that grade higher than a 40, or maybe a 50.
However, once in a blue moon you do come across an ad-backed silk that did not get creased and folded over. Not sure why. Maybe there were some tobacco products that these got distributed in that were slightly larger and didn't require the fold over or, maybe the person doing the packing occasionally didn't fold the silks for whatever reason. In this instance though, since there are some unfolded, ad-backed silks that are out there, I think the grading companies would/should have to take that damage into consideration and only give the highest grades to the unfolded silks.
BobC
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