Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1920-12-18
DIVIDENDS PROVE
COMP PANIES PROSPER
Newman Points Out That Tobac-
CO Manufacturers Can Az
ford to Pay Living Price
CRx Assoeiated pressl

stock dividends which he said haC
been declared by two of the largest
concerns using hurley tobacco were
pointed to in a statement issued here
today by John w. Newman, president
of the Burley Tobacco Growers As
sociation, rs evidence that tobacco
manufacturers could well afford to
pay prices for the 1920 crop that
would compare favorably with the
high prices of recent years. He de-
cfared that if prices that would yield
the cost Of production pays a fair
profit were not Forthcoming when
the hurley markets open January 3,
the growers "stand ready to make
strenuous efforts to curtail next years
acreage"
Mr.. Newman this week has been
pushing organization work in the
hurley counties and in one instance
assisted in the organization of am as
sociation that has among its members
farmers from the Green River or
dark tobacco district. This latter or
ganization was formed in Hardin
county. He also is assisting the far
mers of Daviees county in their work
of organizing to hold the dark to-
bacco crop until prices which farmers
say will prove profitable are obtain
cd. Meantime the association officials
assisted by II. +. Bryant, of Charles
ton, w. Va, United States Crop sta
tistician for Kentucky and West
Virginia, are taking mail census Of
the size and cost of the 1921 crop. It
is hoped TO complete this by Deem
Der goth.
His statement in full follows:
"The tobacco situation in the bur-
ley district is still confused. The
growers are organizing for self-pro-
lection. When the markets open on
Januay 3rd, the grower is not going
to be satisfied with any price that
does not pay the cost Of production
and a reasonable profit. This would
indicate that nothing short of gem
eral average of 30 or 40 cents
pound will satisfy the grower.
"On the other hand, the indications
are that the manufacturer will insist |
upon the buying of the present hurley !,
crop at n figure that will mean an
actual loss to the grower The prices
paid in the Carolinas, Virginia, Ow-
ensboro and on the LOUISVILLE mar
kets are at the lowest point in the
last five years. Most of the tobacco
sold recently has been around half
the cost of production.
"Probably so per cent of the tobac-
&C sold so far this year has been for
foreign consumption.
"The hurley situation is peculiar in
that more than 80 per cent of this
type of tobacco is manufactured in
this country Most of the hurley to-
bacco goes into domestic consump- !
tion. The hurley grower will have
the sympathy of the public and will
be sustained i'm the fight by public /
the price for the manufactured pack !
age of tobacco in no case has de-
clined from war prices, and there are !
are no indications of any such de-
cline, while at the same time the
manufacturer is demanding that the
farmer accept near a 80 per cent loss
in the cost of production"
"The 200 per cent stock dividend /
recently declared by the r. j. Rey-
noldS Tobacco Company and 75 per
cent stock dividend declared by the
American Tobacco Company out of
profits made in recent years out of
high priced tobacco, S pointed to by
the growers as evidence that the
manufacturers have not suffered from !
high prices of raw material during
the last few years.
''The Burley Tobacco Growers AS
sociation is determined to protest
reduction in the prices of their pro-
duct, while the manufacturers main
tains the prices received from the
consumer. The grower maintains !
that the increase in the production of
raw material has not outstripped the
increase in the consumption of the
manufactured tobacco. They will rely
upon the force of public opinion to
justify them in their stand for the !;
cost of production, and a reasonable
profit. They stand ready to make a
strenuous effort to curtail next years |
acreage if the markets open below
this figure. They say that the man.
ufacturers may, like Samson, pull
down the temple upon themselves.
Raw material must be had out of
which to make the manufactured, !,
package. he responsibility tfor any
curtailment by the growers will be
placed upon the manufacturer. Thei
daily average of hurley tobacco on