Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-09-09
Is There "a Tobacco Price Conspiracy?

l. There Tobacco Price Conspiracy?
n GORGE w. KOlNER Commissioner of
" Agriculture, has acted with a prompt
ness that is M once gratifying and reassur-
ing 10 protect the tobacco growers OF Nir-
ginia from tile necessity OF disposing OF
their crops in wha; has every earmark OF
an artificial. bottomleSS market. and 10 pre-
Vent them from being made the victims OF
possible price conspiracy. lie also has
set on foot movement designed 10 un-
cover the causes of this unexpected and
disconcerting market reaction.
Prices paid for leaf tobacco al the North
Carolina warehouses have Slumped III a
most amazing manner The drop comes
without apparent cause. In the face OF
decreased production and vastly in
creased consumption. the figures have
dropped under those Of last season 10 q
point where the growers are threatened
with disaster Either they must sell their
product NJ runous sacrifice, or they mus,
hold ii until more favorable quotations are
marked up by the buyers.
Surface conditions do not disclose the
cause OF the crisis which is at hand for the
farmers, hu, when The economic law Of
supply and demand fails 10 function. as it
Is doing III this instance. il is fair 10 sur
mise that certain interests have conspired
10 bring about that end 10 their own profit.
News from the early North Carolina
markets tells OF prices from % 10 40 per
cent OF last seasons figures. MaSs-mee,-
ingS OF protest are being held and definite
action Viii be formulated by the growers
Virginia 5 markets are not yet open. but
in view OF Developments III North Carolina
ii 4 conspiracy TO batter prices down does
exist, similar conditions may be expected to
obtain ill., this State Armed with this knowl-
- * ,,i.
torestall lis operation and resultant tinan-
cial loss His advice 10 the growers TO
house their crops and hold them for a
rising market IS sound But 10 do this
.hany OF the growers must have financial
aid, for they are heavily indebted for the
cost OF the tobacco now iii their fields or
barns. Money IS tight and credit practi-
cally has been withdrawn under the de-
fation operations OF tile Federal Reserve
Bank Here Is where the banks can aid
and anSwer Nh koiner's appeal /! they
refuse tie necessary funds 10 tide the
farmers over the situation the result may
he we'll nigh catastrophe 10 VIVA, is per-
hars Eirginia's greatest single industry
That they will decline their aid, should il
become necessary, ) not conceivable
ThiS Is not the hrs; time the growers
have been squeezed An investigation OF
the piacers system applied TO them in lsi.
Is still under way. bu, without definite re-
suits SO far as the public has been informed
But with the leads furnished in the North
Carolina markets we'll as by Mr. koine.
efficient government agents OF the Depart
ment OF Justice should be, able TO ferret
out the acts II a conspiracy Is une2r,hed
penalties Of the lax should be e&acted with
OUT lea! Q! favor. Meanwhile. i those in
ierests appealed 70 by the commissioner
VIII give ready aid. ana th= farmers Will!
hold steady, they may be able 10 bring 10
bear pressure 80 heavy IS 10 negative
those unseen and srGspins Influences be
ieYed TO be a. work 20 rob the growers
OF ihs fruits o: their labor and investments
Tor their own excessive proa;