The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1921-02-02
GRADING TOBACCO
UNDER FEDERAL LAW
Proposed As An Aid In Market
ing; Warehouse Act With
License Feature

Washington, Jan. 29.-In order
to assist in placing the marketing of
tobacco upon more business-like
basis the United States Department
Of Agriculture is about to begin in
vestigations which will lead to the
establishing of tobacco grades ap-
plicable througout the entire in
dustry. Though tobacco ranks
fourth among the crops Of the Unit
ed States, returns more than ST.
100000 a year in agricultural
wealth to the nation and more than
$500, 100000 in annual revenue to
the Government, it is marketed in a
manner which producers of less i'm
portant crops would regard as a
short cut to financial ruin.
For this condition the specialists
Of the Bureau of Markets, Depart
ment of Agriculture, blame primari-
ly the auction system of sales in
certain sections and the private
contract system in other localities.
Under the former method loose piles
of tobacco to be sold are placed on
the floor OF a warehouse and ex-
amined by the prospective buyers.
The tobacco is not graded, nor does
the owner have much opportunity
to describe the merits of his pro-
duct. The auctioner then offers
the tobacco for sale and the buyers
are practically in a position to OBJ
tain 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
usually have an indefinite idea of
market prices, to buyers who are
fully informed. The sales frequent
ly are made on the farm and con-
frmed by contracts that are more
binding on the seller than on the
buyer. The sale often is made be-
fore the tobacco is harvested. At
the time of the transaction the to-
bacco may be so far from being in
a marketable condition that even
the buyer is unable to determine
it's value, in which case the farmer
usually gets what the buyer esti-
mates to be a safe price or chooses
to offer.
In a bulletin published by the
Massachusetts Experiment Station,
it is stated that under the con-
tract method of sale the farmer
has all to lose, with no correspond
ing gain; the buyer, little or moth
ing" The same statement would
apply equally as well to the "auc-
ton system" department specialists
say.
No Basis For Valuation
Because OF lack of grades, the
tobacco producer is unable to de-
termine if he is receiving a reasona-
BILE price for his product. There is
no basis for comparison between
the prices 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
quality.
In October the Bureau OF Mar
kets, United States Department OF
Agriculture, held hearings in a
number of cities for the purpose Of
discussing with tobacco growers
merchants, dealers, bankers, ware
house men and others interested in
the industry, tentative regulations
for warehousing tobacco under the
provisions of the United States
Warehouse act. These hearings were
attended by members of the trade
who were representative of the to-
bacco industry generally, and con-
siderable interest was shown in the
bureaus work.
At first there was an attitude of
skepticism regarding the benefits to
be derived from the warehousing OF
tobacco under the provisions of the
warehouse act. Doubt was express
ed that the bureau would be able to
devise satisfactory tobacco stand
ards, but in every instance, before
the end of the hearing, the bureaus
intention TO take immediate action
in carrying out its plans to place
the marketing of tobacco upon
sound basis was approved.
Provides For Financing
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