The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1920-12-23
BURLEY BODY TO
SOLVE THE PROBLEM
OF Low GRADES
Company for the Direct Sale Of Low
Grade Burley to Foreign Buyers
Is Being Organized.

Lexington, KY. Dec. %. - A solu-
ton which members of the organiza-
ton believe will prove entirely ade-
quate for the problem Of how to dis
pose of the low grades of leaf tobacco
that fail to bring satisfactory price
when offered on the looseleaf ware
house floors of Kentucky, was offered
Wednesday by the Burley Tobacco
Growers Association.
Directors of the Association, Lex
ington and Blue Grass bankers, ware
housemen, prominent farmers and re-
dryers combined to formulate the
plan which will be put into effect with
the opening of the Lexington Market,
January 3.
The proposition will be submitted to
growers for the first time Thursday
afternoon at 80 o'clock at the mass
meeting of Burley growers oftFayette
and other Blue Grass counties in the
court house. 1t will be explained in
detail by John w. Newman, president
of the Burley Association. All national
officers as we'll as county officers will
be present.
The Burley Tobacco Marketing
Company is now in the process of or
ganization Its officers will be the
same as those of the Burley Tobacco
Growers Association. Control of both
bodies will be in the hands of the
growers at all times, the articles be-
ing so drawn that no one man can OBJ
tain a dominating position in the af-
fairs of either of the organizations.
This company will begin operation
January 3. Low grades and tobacco
for which prices not satisfactory to
the grower are offered will be turned
over to the company by the farmers.
They will receive a receipt, stating
the number of pounds of each grade
given to the company's charge. The
tobacco is turned over to redrying
plants in the Burley belt, redryed and
stored, warehouse receipts for the leaf
turned over to the company. These
receipts will be negotiable In all
banks that are members of the Feder-
al Reserve System.
Enough money to pay storage
charges on the tobacco held by the re-
dryers will be borrowed from the
banks on the receipts. The tobacco
will be held in storage until disposed
Of ct a profitable figure directly to
European countries for short time
government bonds.
The preferred stock Of the market
ing company will be issued In pay
ment for tobacco at their far market
value. When the final sale Of the sea-
son is made, the preferred stock will
be retired at par and accumulated in
terest. Any profits left will be distrib-
uted pro rata among the growers. In
this way, it was explained, every man
will share proportionately in the
profits to the value of the tobacco de-
livered by him to the marketing COM
pany.
No member of the growers associa-
ton will be required to thus dispose
of his tobacco, according to President
Newman. Any grower not a member
can put his tobacco into the marketing
company by paying the regular an
nual dues Of the growers association
The company will start business
with $25,O00 subscribed to the prefer
red stock, payable in tobacco. The
capital of the company will be In
creased from time to time until all to-
bacco turned into the company Is pait
for in preferred stock at the fair mar
ket prices on the open market. Tht
capitalization is expected to reach ST.,
100000 before the close of the season
it was stated by Burley Association Of
ficials.