The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1920-12-18
Soc TO 4Oc PRICE
MUST Be PAID TO
SATISFY GROWERS
Newman Says Growers VIII Try To
Cut Next Years Acreage Unless
Fair Profit Is Given.

est concerns using Burley tobacco
were pointed to in statement issued
by John w. Newman, president of the
Burley Tobacco Growers Association,
as evidence that tobacco manufactur-
ers could well afford to pay prices for
the 1920 crop that would compare ia
vorably with the high prices of recent
years. He declared that if prices that
would yyield the cost of production
plus fair profit were not forthcom-
ing when the Burley markets open
January the growers stand ready
to make strenuous efforts to curtail
next years acreage"
Mr.. Newman This week has been
pushing organization work in the Bur-
ley counties and in one instance as
sisted in the organization Of an associ-
alton that has among its members
farmers from the Green River or dark
tobacco district. This latter organiza-
ton was formed in Hardin county, He
also is assisting the farmers of Da-
viess county in the work of organizing
to hold the dark tobacco crop until
prices which farmers say will prove
profitable are obtained. Meantime the
association officials, assisted by H. F.
Bryant, of Charleston. W. Va, Unit
ed States Crop Statistician for Ken
lucky and West Virginia, are taking
mail census of the size and cost of
the 1921 crop. 1t is hoped to complete
this by December 20.
1.-The growers are rapidly organiz-
ing for self-protection," said Mr.. New
man in his statement, land they are
not going to be satisfied with any
price that does not pay cost of pro-
duction and reasonable profit This
would indicate that nothing short of
general average of 80 to 40 cents
will satisfy the growers"
1.-THE Tobacco situation IN the Bur-
ley district is still confused. The
growers are rapidly organizing for
self-protection. When tthe markets
open on January the grower is not
going to be satisfied with any price
that does not pay the cost of produc-
ton and a reasonable profit. This
would indicate that nothing short Of
general average of 30 to 40 cents
pound will satisfy the grower.
ION the other hand, the indications
are that the manufacturer will insist
upon buying the present crop of Bur-
ley at a figure that will mean an ac-
tual loss to the grower. The prices
paid in the Carolinas, Virginia, Ow-
ensboro and on the Louisville markets
are at the lowest point in the last five
years. Most of the tobacco sold re-
Gently has been around half the cost
of production.
Probably so per cent. of the to-
bacco sold so far this year has been
for foreign consumption.
"The Burley situation is peculiar in
that more than so per cent. of this
type of tobacco is manufactured in
this country. Most of the Burley to-
bacco goes into domestic consumption.
The Burley grower will have the SYM
pathy OF the public and will be sus-
tanned in the fight by public opinion
when it is shown clearly that the price
for the manufactured package of TO-
bacco in no case has declined from
war prices. and there are no indica-
tions of any such decline, while at the
same time the. manufacturer is de-
manding that the farmer accept neal
fifty per cent. loss in the cost of pro-
|
duction.
"The 200 per cent. stock dividend
recently declared by the R. ]. Reyn-
ODDS Company and rs per cent stock
dividend declared by the American
Tobacco Company out Of profits made
in recent years on high priced tobac-
co, is pointed to by the growers as
evidence that the manufacturers have
not suffered from high prices Of raw
materials during the last few years.
THE Burley Tobacco Growers AS
sociation is determined to protest q
reduction in the prices of their pro-
duct, while the manufacturers main
tain the prices received from the con-
sumer. The grower maintains that the
increase in the production Of raw ma
terial has not outstripped the increase
in the consumption of the manufac.
tured tobacco. They will rely upon
the force of public opinion to justify
them In their stand for the cost OF pro.
duction and a reasonable profit. The,
stand ready to make a strenuous ef-
fort to curtail next years acreage 4
the markets open below this figure
They say that the manufacturers may
like Sampson, pull down the temple
upon themselves. Raw material mus
be had out OF which TO make the man
ufactured package. The responsible,
Tor any curtailment by the grower
will be placed upon the manufacturer
The daily average Of Burley tobacc'
on January 3, win in all probabIlit,
determine In q great measure ih'
amount Of acreage devoted 70 thi
crop during 1891"