Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-03-30
COOPERATIVE PLAN
OF MARKETING WEED
Is Urged For Tobacco Producers
By Expert Frcrs California
Fruit Growers

OF tobacco, both hurley and dark
to include the entire country il
its operations, were outlined or
Tuesday by Aaron Shapiro, co.
operative marketing expert OF
California, at meeting at The
Seelbach of the best minds in ev-
cry line of the tobacco industry
The plans call for commodity or
Sanization.
These points were emphasized
by Mr.. Shapiro and will be pre-
sented to the Kentucky Farm Bu-
reau Federation at its second an
nual convention beginning We'd
nesday.
"Or9anize by commodity, not
by locality. Not only one kind of
tobacco, but all kinds of tobacco
into number of separate groups
but federated on a selling basis,
There must be real farmers in
the association. The men who
belong to it must produce the
commodity. There must be uni
versal interest.
You must organize from a
business standpoint purely, not
from a fraternal standpoint.
You must have a longtime
contract longer than a year. 1t
should be at least five years.
"The auction system of selling
tobacco i'll Kentucky is wrong
People have tried it for a century
and found it was wrong. They
certainly should be willing to try
the commodity cooperative mar
keting for more than vCIr'
Commodity marketing would
require the use of every ware
house i'll the state; it would not
neCessitatc the abandonment of
single warehouse. Warehouses
are OF two kinds and purposes,
legitimate and illegitimate. 1t is
Legitimate for them to receive.
grade and store tobacco. 1t is IL
legitimate for them to be used as
scene of auction"
In outlining his plan by which
the marketing association would
acquire possession of warehouses.
Mr.. Shapiro assumed there was a
100000 warehouse in Lexington
which the marketing assc :iation
wanted. The, association would
purchase warehouses whe.rNc
possible. building as last resort
Inc explained.
Mir. Shapiro advocated fo:min"
of a corporation with capital of
S2OO,OOO, of which $lOO.ODO would
be preferred and 100000 co,nmon
stock, divided into shares OF $40
each.
AT first only nine shares Of COM
mon stock would be issued to the
growers of the association. Only
common stock would carr" right
to vote.
Preferred stock of StD coo
would be divided into five classes
of $4,000 each, one Cla,, u nc
retired at the end OF erc'l year.
1t would pay eight per cent in
tercst and would be soil to the
public.
The system would Jc f": the
marketing association to deduct
from sales OF tobacco to its mem
bers enough money to pay inter
est on the outstanding preferred
stock, retire $4,000 of the pre-
ferred stock each yeaar and pay
all expenses incident to operation
of the warehouses.
Other marketing plan details
provide for dividing the state in
to districts, appointment of two
directors ON the board of 23 to
look after interests of the public:
an executive committee of five
to conduct affairs of the associa-
ton; yearly membership dues of
So and the bringing of all grow
crs into the organization. In the
event less than SO per cent of the
growers of the state have not
joined at the expiration of a set
time limit members will be re-
leased from their obligations.
Members are to agree to dellv-
er during the period of five years
all tobacco they produce, giving
right to the organization to grade
and sell and deduct from the pro-
ceeds amounts necessary for do
ing the associations business. The
association is to pay to growers
from the proceeds of sales in pro-
portion to the total amount ham
died, taking into consideration
grade, type and quantity. Every
member is to agree to authorize
the association to enter into SIM
liar agreements with associations
in other states. Each member is
to have one vote.