Maryland independent. [volume] (Port Tobacco, Md.) 1874-current, 1923-04-13
What Can, Be Done By An
IS Per Cent Organization.

Mr.. Joseph A. Wilmer and the wri-
/ ter spent five days IN Lexington, Ken
lucky, the heart of the Burnley Tobacco
section In that State, where there is
an association OF nearly 80 per cent of
the growers OF the Burley Tobacco,
numbering oyer 80, 900 members, and
a complete organization.
We found this situation in Ken
lucky That in the year 1921, the to-
bacco market had opened in Kentucky
with tobacco selling at one-third the
price that ii had sold for in 1920, or
about l3c. per pound, the crop the
year before having brought about acc.
around. With this condition CON
| fronting them, the farmers and two
thirds OF the banks and business
houses dealing with farmers, were
facing bankruptcy.
For two weeks all warehouses in
Kentucky were closed, with the hope
during the time of working Qua solu-
lion OF their problem. They had no
plan OF organization, no membership
or other means of meeting the situa-
ton. But they did begin Immediately
to work out plan and perfect an or
ganization during the Spring OF 1921.
Meanwhile, tobacco sold that year
with nothing to hold up the price, at a
fraction less than l3c. around, for a
good srop of Burley Tobacco of 2OO,-
900, 900 pounds.
By the summer of of 1921 their plan
of organization was perfected; and
with the Joint aid of all the banks and
business houses in that part Of the
State. made the final drive that signed
at least IS per cent of the growers OF
Burnley Tobacco on iveyenr con-
tract. During the fall OF 1921 the man
agement worked out their system OF
handling the tobacco. Procured ware
houses valued at $6,000,000 under a
long term purchase agreement with
the owners OF the warehouses and were
ready to receive the crop that was to
come ir the following year,
In January 1922, the Association
began receiving, sampling and grad
ing tobacco for its members. During
that yeari 1929 the crop OF tobacco, a
poorer crop than that sold the year
before at 13c., sold for something
above 22c. around, the $50, 600, O0O
pounds bringing to the growers S3I,-
zoo, coo, where as the crop OF 220, 0OO,-
600 pounds sold in 1921 at l3c, per
pound had brought SIC, 900, 900, giving
to the growers on shorter and poorer
crop Sll, 700,00 more money than
they received the year before when
they we're unorganized.
The price of tobacco is fixed by the
Association at the beginning OF the
selling season and is not changed. The
Association guaranteeing the price so
fixed for period of six months.
This year (l923) with nearly two
thirds of the crop already sold, on an
estimated crop of 240, 900, 900 pounds
and very fine crop of Burley Tobae-
co, they are receiving on an average
of 3le. per pound, which it is figured
will bring the total receipts from the
crop now being sold to S74, 800, 900, or
nearly three times the amount realized
from the crop of 220,000,0O pounds
sold in 1921.
This is the result of 80 per cent
management and complete control OF
the selling of the tobacco in Kentucky.
In other words the Association has
added between $45, 000, 600 and $50, 900,
600 to the income OF the Burley To-
bacco growers in the past two years.
Do you not think that worth while,
when only two years ago the Burnley
Tobacco growers, the banks and bust
ness houses dealing with them faced
bankruptcy 2
This system in Kentucky tmade pos
sible by at least an 50 per cent MEM
bership) is very complete in all its de-
tails and appears very satisfactory to
the manufacturers and buyers OF to-
bacco. It was apparent to us that the
prices obtained by the Association,
due to its better system of grading and
selling, were well above many of those
secured by the independent or loose
| leaf houses, of which there are still a
few in Lexington. This was very evil
dent on the lower grades where we
saw tobacco sold by them at $3.50 and
Sc. 90 per hundred pounds, that was of
the identical grade that the Associa-
ton had sold 8, 625. 900 pounds at $40
per hundred pounds. This grade of
tobacco last fall on the Baltimore
market sold for about one-third OF
what they are selling it for on tie Or
ganized market of Kentucky.
It is only possible in this space to
lgive a brief outline OF the situation it
took five days to cover. The details
will be explained and samples dis
played at meetings that are TO be held
| In your county later on.
| (Signedl GEORGE |. GARDINER.