Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-02-15
Progress in
Growing and
Marketing Tobacco


Lexington, Ky, Feb. 14-From the
days when buyers went from barn to
barn and bought tobacco, to the high
ly organized Burley Tobacco Coop
crative Marketing Association, which
this year is advancing as much mon
ey to growers on 40 per cent. basis
as was paid for the entire crop last
season, is the progress made in mar
keting kentucky's annual Burley to-
bacco crop of approximately 100000
900 pounds.
for his product has been one of ups
and downs. The 1920 crop brought
, him the highest price he ever re-
| ceived for his tobacco. but the 1921
crop, that cost upward of is cents a
| pound to grow, was sold at loss, the
| seasons average being II IL cents.
With view to averting a repeti-
ton of this, Judge Robert w. Bling
ham. Louisville newspaper owner,
became interested in the cooperative
marketing plan. and in company with
several growers, visited Barney Ba-
ruch in New York and laid before
him a plan for financing the crop.
On March IS meeting of tobacco
growers from Wisconsin. Indiana,
Ohio, Kentucky, Tennessee, Virginia.
West Virginia. North and South
Carolina and Georgia was held here.
at which Aaron Sapiro presented the
plan under which California fruit
and grain growers and other pro-
ducers are organized. From this
meeting the movement to organize
the BurlCy tobacco growers was
launched, and after several months
SIS per cent. of the crop was pledged
and the Burley Tobacco Cooperative
Marketing association incorporated in
North Carolina.
When the kentucky General AS
sembly met the first of the year, the
Bingham Cooperative Marketing bill
was passed in record time and the as
ISOLATION then incorporated in Ken
lucky. In the meantime. however,
the association had secured III to-
bacco warehouses in Ohio, Indiana.
West Virginia and kentucky for its
exclusive use. The War Finance
Corporation and banks in the inter-
ested districts pledged almost &c.
100000 to the association.
On January IS the warehouses here
were opened for the receipt of
pledged tobacco and it was graded
upon delivery by the grower and a
check for an estimated value of 40
per cent. of the wort h
of the crop advanced to the growers.
Four days later the houses through
out the Burley district were opened
and tobacco began to pour in.
This plan will be in operation for
at least five years. the farmers hav-
ing signed up for this period of time.
Prior to 1904, the barn to barn
sale was in vogue. After this period
the loose leaf warehouse, where the
tobacco was taken by farmers and
auctioned off. was used extensively.
The, first attempt to form a tobac-
co pool took place in Cincinnati in
1897, but was short lived. The ia
nous Equity Society, with it's attend
ant night riding and other evidences
of dissatisfa action. was organized in
1905. The Burley Society was organ
lied along similar lines the next
spring. After several years the
Equity disbanded. The Burley, how
ever. continued TO operate. 1t is said
that never more than so per cent. of
the crop was pledged to it in any
year.
The loose leaf warehouse system
has been in use during the last few
years and there now are several hun
dred such houses in Kentucky alone,
with many others in the adjoining
states. ..-..
The crux was reached in January,
1921. when farmers offered their
high priced 1920 crops for sale. The
average price paid on the opening
day on the whole was far below the
cost of production, and many grow
ers faced ruin.