Evening star., 1944-05-11
Maryland Tobacco
Sellers Await 0PA
Decision on Prices
Eight Warehouses Closed
Pending Action on Plea
To Increase Ceiling

Southern Marylands S eight tobacco
warehouses remained closed today
awaiting action by the Office OF
Price Administration on protests OF
tobacco sellers against an average
SO cents a pound ceiling price es-
tablished prior to the market open
ing Monday.
{, Edwin F. Ragland, chief of the
/ OPA'S tobacco section, said the price
control agency was giving the matter
sympathetic consideration" and
added that the agency hoped to
reach a decision today or tomorrow.
Frank Hall, president of the Marl-
boro Tobacco Market, said a meet
+. ing of warehousemen and growers
will be held there tomorrow to de-
termine if the markets will reopen
Some warehouse officials predictd
that the market would function
again by Monday.
Cigarette Price Involved.
Two of the three Marlboro mar
ketS closed soon after sales began
Monday, while the third did not
open, Markets at Waldorf, Hughes
vile and La Plata continued sales
until the regular closing time
Monday.
Both Representative Sasscer and
Senator Tydings, Democrats, of
Maryland, joined sellers in a request
that the OPA lift the ceiling prices
of tobacco.
Mr.. Sasscer pointed out that with
tobacco selling last year at an aver
age of 56 cents, with a top of 70
cents a pound, it is apparent that
buyers are using the 52-cent average
as basis for low bidding.
OPA officials pointed out that the
Maryland tobacco, referred to as
type 80 and used in cigarettes for its
burning qualities, was the last to be
brought under price control regula-
tionS. Burley and flue cured to-
bacco has been under control fol-
the last two years. The Maryland
tobacco was placed under ceiling
price regulations, it was said, to pre-
vent a possible increase in the price
of cigarettes.
Mr. Ragland said the OPA hoped
to reach a decision in the Maryland
situation which will be agreeable tc
sellers. and at the same time will
protect the price structure. After
ALL" he said, I'VE also have our joE
to do"
While growers and warehouSemen
declared the ceiling prices were
running the Maryland farmers
since buyers we're only bidding tc
the average price for top grades OF
tobacco, the head buyer for one ot
the large cigarette manufacturing
companies denied this.
Price of so Cents Offered.
This buyer, who asked that his name
be. withheld, said his company hao
bid more than so cents a pound TO,
some tobacco during the first day OF
the sales. He said some warehouse
men also had bid III tobacco for as
much as so cents pound
I'VE have not been ordered by our
company to keep our top bids to the
average ceiling price" the buyer
SAID We have only been ordered
to see that our average prices at the
end Of the market have not exceeded
the 52cent ceiling.
"A large part of the crop now or
the warehouse floors is unsuitable
for cigarettes" he continued. "anc
we wouldn't buy it at any price. The
only thing I know it could be usec
for is in cheap cigars"
Both tobacco buyers and Agricul.
ture Department experts agreed tha
the Maryland crop this year was fal
under the quality of last years crop
sSome observers doubted that tht
price would be greatly affected i
the ceiling price was lifted entirely
OPA officials, however, admitted
that in the fiue-cured markets thu
average ceiling prices had narrowed
the spread between top and low
prices paid. Observers at Marlboro
pointed out that with tobacco a.
low quality this spread was mar
roWed to the point where buyers
were forced to control their tor
( prices to about the average ceiling
in order to protect themselves or
the lower tVpPS