The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-22
Will Make Investigations for Estab-
liShin@ Tobacco Standards.

In order to assist i'm placing the
of tobacco upon "A more
busincss-likc basis. the United States
department Of agriculture is about
to begin Investigations which will
lead TO tho establishing of tobacco
grades applicable throughout the en-
tire industry. Though tobacco ranks
fourth among the crops of the United
states, returns more than $1,000, ,O00,-
600 n year in agricultural wealth to
the nation and more than $500, ,OOO.-
600 in annual revenue to the govern
ment, it is marketed in a manner
which producers of less important
crops would regard as a short cut TO
financial ruin.
For this condition. the specialists
Of the bureau of markets, department
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
q warehouse and examined by the
prospective buyers. The tobacco is
not graded. nor does the owner have
much opportunity to describe the
merits Of his product. The. auction
Ger then offers the tobacco for sale
and the buyers are practically in a
position 10 obtain the tobacco for any
price they choose To pay.
Sold Privately by Some.
In the latter case, the tobacco is
sold privately by growers. who usual
ly have an indefinite idea of market
prices. to buyers who arc fully in
formed. The sales frequently are
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 toba cco
is harvested. Al the time of the
transaction the tobacco may be so far
from being in marketable condi-
ton that even the buyer is unable to
determine it's value, in which case the
farmer usually gets what the buyer
estimates To he safe price or
chooses to offer.
In bulletin published by the
Massachusetts experiment station. ii
is stated that "undCr the contract
| method of sale. the farmer has all to
lose, with no corresponding gain; the
buyer, little or nothing" The same
statement would apply equally as well
10 the auction SYSTEM" department
specialists say.
No Basis for Valuation.
Because of lack of grades. the to-
hacco producer is unable to deter
mine if he is receiving rcasoua blo
| 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
other markets, for they are not based
upon recognized standards of quail
| ity.
In October, the bureau of mar
kets, United states department Of ag-
! riculturc held hearings in num-
ber Of cities for the purpose of dis
| cussing with tobacco growers. NOR
chants, dealers, bankers, warehouse =
men. anG others interested i'm the in
dustry tentative regulations for
warehouSing tobacco under the pro-
visions of the United States ware
house act. These hearings were at
tended by members Of the trade who
were representative OF the tobacco in
dustry generally and considerable in
terest was shown in the bureaus
work. At first, there was an attitude
Of skepticism regarding the benefits
to be derived from the warchousing
of tobacco under the provisions of
the warehouse act. Doubt was ex-
pressed that the bureau would be
able to devise satisfn nctory tobacco
standards. but in every instance, be-
fore the end of the hearing, the bu-
r"au's intention to take Immediate ac-
ton in carrying out its plans 10 place
the marketing Of tobacco upon a
sound basis, was approved.
Provides for Financing.
Under In" provisions OF the United
states warehouse act. tho secretary OF
agriculture is authorized to license
warehouses for the storage of cot
ton, grain. flax seed, wool. and tobac-
co. The chief purpose of the act.
with respect to tobacco. is to establish
n system of warehouses in which to-
bacco may be safely stored ana
through which the industry can more
easily be financed and tobacco more
marketed. TO accom-
plish this purpose, the act is designed
W pIoNIdc II form OF warehouse re-
ccipt which will be readily accent
able and widely negotiable as security
Tor loans. Any warehouse that adc-
quately protects the tobacco stored
therein may be licensed. The rcgu-
lations under the act provide for in
Spcction of the premises at irregular
intervals, examinations of the com
moditics stored, and observance by
the warchOuscman Of standards of
business practice.
Since the passage of the act, more
than 300 applications for warehouse
licenses have been received by the bu-
Irau of markets, the majority of
mem during the last wear. Produce
"fS ana WarchouScmcn now appear
I" appreciate the benefits To be de-
rived from the warehouse act The
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