The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1922-09-22

NOTE BOOK SKETCHES


The bankers committee chosen 20 CO.
operate with the tobacco pool met at
Milwaukee a week ago. While the
committee declares that, on the basis
of the report from it's members who
went to Kentucky to investigate the
pool there, the bankers would not be
unwilling to loan money on pooled to-
bacco, it also reserves the right to fix
the loan valuation of the tobacco and
the time when the loans must be paid.
The committee goes on record as an alb
solutely unbiased body in the matter of
whether the pool is good thing and
has chance of success or not. If the
banks loan money to the pool, it must
not be considered an Endorsement of
the pool by the bankers, isathe commit
tees stand. It also serves notice that
since the pool manager was chosen
without the previous approval of the
bankers, any further advisory Offices of
the committee should not be involved
in the pool management.
xk*
The Northern Wisconsin Tobacco pool
organization is now under the direction
of Manager Hoen who in conjunction
with the board of directors is endeavor-
ing to develop definite policy of con-
Quoting the big business. The ware
housing department needs especially
careful analysis in order to be placed
on an efficient as well as on an econom-
ical basis of operation. The time for
the warehousemen to accept or reject
the proposition to lease or sell to the
pool may be extended so as to give both
sides opportunity to act with full ap-
probation of the problems involved.
The warehousemen seem to feel that to
make contract to sell their property
before the terms of sale are accurately
settled would put them at disadyant-
age. They do not refuse to deal with
the pool, but they desire to know just
where every step taken will lead them.
An earnest and candid approachment to
each other of both parties would, per-
haps, clear the way to make progress
more certain.
SAe..4 ***
In front page article the Tobacco
Leaf for Sept. makes the following |
observations concerning the manufac- |
turers' attitude to the present binder
situation, OF interest to Wisconsin /
growers and packers:
The binder situation is apparently |
taking it's cue from the recent develop |
ments la Connecticut. The rapidity and |
eagerness with which the new packings |
of Connecticut Broadleaf were taken |
up by the trade is a fairly accurate |
gauge as to the interest felt with re-
spect to the new Wisconsin. The activ- |
ity shown then will unquestionably be |
repeated. Those manufacturers who |
are accustomed to look to Wisconsin |
for their binder supply have been drop |
ping down into Water Street and max |
ing discreet inquiries, and what they |
have learned has not treasured them
A much higher price scale is in pros |
pect than they had anticipated even up
to two months ago, but this scale is the |
natural sequence to the, tobacco situa-
tion that has developed.
Another factor that is contributing
toward the eagerness of the manufac-
turers in securing their binder supply is |
the knowledge that the 1922 crop is
under agreement to the pool and will
De sold by the farmers organization
rather than by the packers. 1t is the
strangeness of this experience that is
causing the manufacturers to supply
their needs so far as is possible from
old and familiar sources. They do not
question that they will be able to buy
tobacco on advantageous terms from
%ho III hr1f xxyhn o,sh af
business has been adjusted to buying
from packers, and they do not know
exactly how the pooling scheme will
work out, and consequently they desire
/ to make themselves as nearly indepen-
dent of the pool as possible. And on
| top of all these reasons is the fact that
| the supply of fine binders produced by
| the 1921 crop is not so large as it was
| thought that it would be.
| So, manufacturers are going to buy
heavily of the 1921 binders. Those
packers who had either the luck or the
| foresight to make liberal commitments
I and put up large packings are without
question going to reap the legitimate
reward of their prescience. Overstim-
ulating the market is a practice that
The Tobacco Leaf would not care to be
guilty of, but there is no use in blink
ing at facts. Water Street is going to
be an active little section as soon as the
new Wisconsin comes on the market.
**Ik
i Ex-Vice President Marshall's quip
that what this country needs is a good
&c cigar may be sarcasm directed not
at the matters Mr.. Marshall had in
mind, but at the cigar business. At
any rate the manufacturers are prepar-
ing the country, not for successful
five center, but for costlier cigars if
the smokers are to have any cigars at
all. 1t is pointed out that the leaf
market shows 70 tendency to offer
cheaper material, neither in imported
nor domestic quality goods, and labor
sticks. The Revenue department re-
port for the fiscal year ending June 80
shows that the five cent and other A
cigars gained 29 per cent in the year,
Il or1 ha% 0%oI sl<oc rarnrf1 af1n1 nf