The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-11
Farmers Union Will
Redry and Store
Entire Crop.
HEN HOLD FOR
HIGHER PRICES
Financial End of Proposition
Will Be Worked Out at Once.
Tobacco Trade of Country
Will Be Revolutionized
if Virginia Union
Succeeds.

Plans looking to the practical con-
troll of the tobacco market of the coun-
try were laid yesterday morning
at meeting of the executive commit
tee of the Virginia Division OF the
Farmers Educational and Cooperative
Union Of America. held at the Lexing-
ton Hotel. The movement has been
secretly considered for some time, and
IT was not until yesterday that mem
bers of the order were ready to dis
cuss 1t.
Should the move prove successful.
and should it reach the gigantic pro-
portions which the committeeman ex.
pect. the tobacco business of the land
VIII be revolutionized Put briefly,
the intention is to store the crop as
gathered in warehouses. and TO issue
certificates thereon. which would bs
used as collateral security Tor loans
from banks. to carry the farmers until
the crop Is sold. And it will not be
sold until desirable price IS secured.
Membership mt Large.
OF course. at present such a move
would be limited. both by the extent
TO which the plan is developed ana
also b. the membership secured by the
Farmers Union. On the latter point
great confidence is expressed. since
the growth OF the organization during
the past two years has been phenome-
nal, and IT is particularly strong in
the tobacco growing portions OF the
State. In fact. il is claimed that 1t
already controls the bulk of the crop.
Besides, IL is expected that the union
In other States will take similar steps.
Details of the plan We're made pub
lie yesterday by State Secretary II. l..
Petty. OF Union Level, following the
adjournment OF the executive COM
mittee. The intention is to have huge
warehouses at central points. and to
build these as rapidly as possible. In
fact, such structures have already.
been put up at Danv.lle and at Hous-
ton. which II now transpires are 10 be
used for this purpose. To these ware
houses the farmers would bring their
tobacco 1t is first to be redried,
which will put 1t in condition to be
kept Indefinitely without damage,
Then it Is put into the warehouse. and
4 regular certificate OF deposit is
issued TO the owner OF the crop
Money on Certificates.
The aid of local banks will be sought
in carrying out the financial end OF
the plan. 1t IS proposed that the
banks be asked to lend money up to
65 per cent. of the value of the mar
ket price of the amount OF tobacco
shown by the certificate to be owned
by the borrower. AS result the
grower will have nearly two-thirds OF
the money return OF his crop In his
hands as soon as 1t IS gathered.
Under the existing system, the farm
er is nearly always Obliged to sell as
soon as his crop natures. With the
great bulk OF the tobacco thrown on
the market st one time the price is
naturally depressed. In obedience to
the primary laws OF supply and de-
mand. Most frequently the grower
has obligations which he must meet
at once. At all events. he has his liv-
ing to make. and he must sell.
Get Bigger Prices.
The tobacco IN the warehouses
would be controlled BY committees of
the Farmers Union, 1t would be held
until the world asked for it, and the
world would not get 1T except at such
price as would be fixed by the COM
mittee
The farmer would get the higher
price, he would have more money left
over after settling with the bank, and,
according to the theory of the exec
what he ought to have.
The tremendous possibilities in the
way of control of the market involv-
ed in such plan. especially IL the
farmers of the other tobacco growing
States cooperate. will be readily
seen. But Mr.. Petty says there is
no intention to form a combinatio
in restraint of trade. or to control
prices to an unreasonable extent. The
union only wants, he says. the farmer
to get fair price for what he has
raised.
Committee VIII Act.
A subcommittee was named yester-
day to take UP the financial end of
the proposition. end to see to what ex-
tent the local banks can and will CO.
operate. The lack of money alone,
1T is pointed out. has prevented the
farmers all along from holding their
own crops until they secured desirable
prices. 1t is now proposed to put the
matter under cooperative control.
The spectacle of buyers for the to-
bacco trust bending the suppliant
knee for stock at the farmers prices
looks attractive to the members of
the union, who claim that the suppli-
cation in the past has all been In the
other direction.
The executive committee decided that
the next annual convention of tne
Virginia Division snail be held in
Lynchburg. beginning on February 8,