The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1921-01-20
WILL MAKE PLANS FOR
TOBACCO STANDARDS

marketing of tobacco upon a more
business-like basis, the United States
Department of Agriculture is about tc
begin Investigations which will leao
to the establishing of tobacco grades
applicable throughout the entire in.
dustry. Though tobacco ranks fourth
among. the crops of the United States,
returns more than $1,000, 1000, 900 a
year in agricultural wealth to the ma
ton and more than $300,000,O00 in
annual revenue. to the government, it
is marketed in q, manner which pro-
ducers Of less important crops would
regard as a short cut to financial
ruin. T.; =; ;.
| For this condition, the specialists
of the Bureau of MARKETS., Depart
ment of Agriculture, blame primarily
the auction system of sales in certain
sections and the private contract sys-
tenn in other localities. Under the
former method loose piles of tobacco
to be sold are placed on the floor Of a
warehouse and examined by the pros
pective buyers. The tobacco is not
graded, nor does the owner have
much opportunity to describe the
merits of his product. The auctioneer
then offers the tobacco for sale and
the buyers are practically in posi-
ton to obtain the tobacco for any
price they choose to pay.
In the latter case, the tobacco is
sold privately by growers who usu-
ally have an indefinite idea of mar
ket prices, to buyers who are fully
Informed. The sales frequently ar,
made on the farm and confirmed by
contracts that are more binding on
the seller than on the buyer. The
sale often is made before the tobacco
is harvested At the time Of the
transaction the tobacco may be so far
from being in a marketable condi-
ton that even the buyer is unable
to determine its value, in which case
the farmer usually gets what the buy
er estimates to be safe price or
chooses to offer.
In a bulletin. published by the Mas
sachusetts Experiment Station, it is
stated that "under the contract meth
cd of sale, the farmer has all to lose,
with no corresponding gain; the buy
er, little or nothing" The same
statement would apply equally as we'll
to the "auction SYSTEM" department
specialists say.
Because Of lack of grades, the to-
bacco producer is unable to deter
mine if he is receiving a reasonable
price for his product. There is no
basis for comparison between the
prices paid in one community and
those paid elsewhere. Quotations of
one market usually mean little in 9th.
er markets, for they are not based
upon recognized standards of quail
ity.
In October, the Bureau of Markets,
United States Department of Agr-
culture, held hearings in a number of
cities for the purpose of discussing
with tobacco growers, merchants,
dealers, bankers, warehousemen and
others interested in the industry, ten
tative regulations for warehousing to-
bacco under the provisions of the
United States Warehouse Act. These
hearings were attended by members |
Of the trade whe, were representative |
OF the tobacco industry generally and
interest was shown in
the bureaus work. At first. there was
an attitude of skepticism regarding
the benefits to be derived from the !
Of tobacco underline Pre-
visions of the warehouse act. Doubt
was expressed that the bureau would
be able to devise satisfactory tobacco
standards, but in every instance, be-
fore the end of the hearing, the bu-
reau's intention to take immediate &C
ton in carrying out it's plans to place
the marketing of tobacco upon a !
sound basis, was approved.
Under the provisions of the United
States Warehouse Act, the Secretary
OF Agriculture is authorized to IL
cense warehouses for the storage of
cotton, grain, flaxseed, wool and to-
bacco. The chief purpose of the act,
with respect to tobacco, is to establish
q system of warehouses in which to-
bacco may be safely stored and
through which the industry. can more
easily be financed and tobacco more
advantageously marketed. To ac-
complish this purpose, the act is de-
signed to provide a form of warehouse
receipt which will be readily accept
able and widely negotiable as Sc
curity for loans. Any warehouse that t
protects the tobacco !
stored t.,,erein may be licensed. The
regulations under the act provide for
inspection Of the premises at irregu-
lar intervals, examinations Of the
commodities stored and observance
BY the warehousemen Of standards
Of business practice.
Since the passage Of the act, more
han 300 applications for warehouse
licenses have been received by the
Bureau of Markets, the majority of !
hem during the last year. Producers
and warehousemen now appear to APP
preciate the benefits to be derived
from the warehouse act. The bu-
reau's regulations for the warehouse
ing of tobacco are in the hands of the
printers and will be ready for gen.
eral distribution in the near future.
How soon tobacco grades will be rec
Will depend upon the abil-
ity of the bureau to carry on the
work with the limited funds at its