The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-11-03
Explanation of High
Prices for Tobacco

Everybody hereabouts, whether in or out Of
the tobacco business is specializing to the
cause for the high prices being paid in this vcin-
ity for leaf tobacco with the extraordinary de-
mand for the Virginia and Carolina bright leaf.
There many speculative suggestions to
the real cause. and these differ widely, some of
them being probably mere suesses.
One of the impressions held by many is that
tho British-American or Export Tobacco COM
pany Is trying to force the Imperial Tobacco
company out Of business by strong competition
and by compelling it to pay high prices for
the raw product. or else to make it sell its
business to the Rritish-American.
Another suggested explanation of the unpre-
cedented demand and high prices for bright
thbaccos is that the several large tobacco manu-
featuring corporations in this country are en-
deavoring to convince the public and the congress
and courts of the United States that there is
very real competition among the several COM
panies into which the so-called Tobacco trust
was disintegrated and also to please farmers
and thereby forestan and prevent any drastic
antitrust legislation by congress during the Will
son administration.
Our own view is that neither Of these sug-
Eested explanations is the real one This is
an excellent crop Of tobacco this year, well
bodied, sweet and workable and admirably
adapted to manufacturing purposes In fact
it is the best crop for all purposes that has been
grown for years in the old bright tobacco belt
Of Virginia and North Carolina This being true
,tee companies anxious to re-
cure much Of It as possible even II II be a
superabundance for their needs during the pres
ent season, 1t is good stock to carry over IL
necessary and will be but the sweeter and bet
ter, If there be any Interior motive on the part
Of the liz buying firms and corporations In buy
ing so heavily OF this years crop and competing
so vigorously for tt-and believe there Is
such explanation and motive--it Is to encourage
and stimulate our growers by the extra high
prices paid for the weed grown in the old belt
tobacco section to increase the acreage and out
put Of the weed year by year to meet steadily
Increasing demands for such stock by the big
British American company, which is pushing and
widely extending the sales of cigarettes and
other tobacco products manufactured out OF our
peculiarly sweet and we'll favored tohaccos in
all parts Of the world There Is doubt that
this company is widely extending the sale of
products of Virginia grown tobacco in Asia and
throughout the world.
Therefore we cannot bring ourselves to believe
that there is any reason for the tobacco growers
Of the old belt to reduce their acreage or nro-
duction. The great tobacco companies desire
quantity as well as quality to make their out
put worth while and To keep it uniform and
consistent in quality year after year They know
that the present crop is admirably adapted to
their purposes, they have no such assurances
that another years crop Will be as good
A year ago the farmers were rushing their to-
haccos 10 market before the presidential cleo
ton. some fearing that a result Of the de-
eision prices might decline. How idle that scare
was is abundantly shown by the fact that now
a year after the election prices are even hieher
indeed, almost twice high Is Tor the same
qualities year ago The demand for tobacco
IN cigarette and Othe~ forms IS bong svsten1a =
ucal!y and theoretically extended throughout the
entire world and the Virginia leaf /, found -
be admirably adapted TO suit the demand. We
regard the tobaccos grown in this belt as super
Tor in quality for manufacturing purposes to
that grown anywhere else and there is reas IN
to believe that the British~American COMPANY
whose operations are world wide, so regards t
also.-Danville Bee.