The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1922-03-02
Marketing Basis
Changed BY Time

ACAlASCO AASASNSAAS'
the days when buyers went from
barn to barn and bought tobacco,
to the highly organized Burley To-
bacco Cooperative Marketing associa-
tion,S which this year is advancing as
much money to growers on a 40
Der cent. basis is was paid for the
entire crop last season, is the prog
ress made in marketing Kentucky's
annual hurley tobacco crop of ap-
proximately 20O,0O0,O00 pounds.
The farmers fight for good prices
for his product has been one of ups
and downs. The 1920 crop brought
him the highest price is ever received
for his tobacco, but the 1921 crop,
that cost upward of Is cents
pound to grow, was sold at loss,
the seasons average being 142 cents.
With view to averting repetition
of this, Judge Robert w. Bingham,
Louisville newspaper owner, became
interested in the cooperative market
ing plan, and, in company with sew
eral growers, visited Barney Baruch
in New York and laid before him a
plan for financing the crop.
Meeting of Growers.
On March 2S meeting of tobacco
growers from Wisconsin, Indiana,
Ohio, Kentucky, Tennessee, Virginia,
West Virginia, North Carolina, South
Carolina and Georgia was held here,
at which Aaron Shapiro presented the
plan under which California fruit
and grain growers and other produc-
ers were organized. From this meet
ing the movement to organize the
Burley tobacco growers was launch
ed, and after several months IS per
cent. of the crop was pledged for the
Burley Tobacco Cooperative Market
ing association incorporated in
North Carolina.
When the Kentucky general assem-
bly, met the first of the year, the
Bingham cooperative marketing bill
was passed in record time and the
association then incorporated IN
Kentucky. In the meantime, how
ever, the association had secured III
tobacco warehouses in Ohio, Indiana,
West Virginia and Kentucky for its
exclusive use. The war finance cor
poration and banks in the interested
districts pledged almost s6,000,OOO
to the association.
On January 26 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 worth of the crop
advanced to the growers. Four days
later the houses throughout the. Bur-
LEV district were opened and tobacco
began to pour in.
For Five Years.
The 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 Pc
riod the loose leaf warehouse, where
the tobacco was taken by farmers
and auctioned off, was used exten-
sively.
The first attempt to form tobacco
pool took place in Cincinnati in 1879,
but was short-lived. The famous
Equity society with it's attendant
night riding and other evidences OF
dissatisfaction, was organized in
1905. The Burley society was organ
lied along similar lines the next
spring. After several years the
Equity disbanded. The Burley socie-
ty, however, continued to operate.
1t is said that never more than 80
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.