Evening star., 1944-05-10
Fdrmers' Protest
On Prices Halls
TobaccoSaIes
All Eight Warehouses
In Southern Maryland
Closed Indefinitely

All eight tobacco warehouses in
Southern Maryland were closed to-
day for an idefinite period after
buyers refused to pay more than 50
cents pound at the opening of the
tobacco market yesterday.
The action followed a meeting of
tobacco growers and auction house
representatives in Upper Marlboro
last night in protest against prices
which warehousemen said would re-
suit in an $8,000,000 loss to farmers.
Another meeting will be held later
this week.
Two of the three Upper Marlboro
warehouses closed soon after sales
began yesterday, while the third re-
fused to open. Sales continued until
the normal closing at La Plata,
Waldorf and Hughesville, although
farmers were reported dissatisfied
with the prices being offered.
Bids Limited to Best Part.
Frank Hall, president of the Marl-
boro Tobacco Market, declared that
If last years tobacco crop Is sold on
the basis of yesterdays sales, it
would bring at least 20 cents a pound
less"than the 52-cent ceiling average
set by the Office of Price Admin
iStration.
"e said check of yesterdays sales
reVealeu 1T tobacco manufactur-
ers and dealers bid on only so per
cent OF the tobacco offered and then
only on the best portion of the crop.
The remaining so per cent was being
purchased by warehousemen and
SPECTATORS, he declared.
Mr.. Hall pointed out that while
the OPA ceiling is So cents a pound
this is the figure on an average basis
for the entire season, which ends in
September, and does not prevent
buyers from bidding as high as thev
want to on the better grades of
tobacco.
OPA Asked to Lift Ceiling.
Meanwhile Representative Sasscer
Democrat, of Maryland announced
that he has requested the OPA to lift
the ceiling in order to "avert a
calamity"
With tobacco selling last year at
a 56-cent overage and a top of 10 +"
he asserted, "it is apparent that the
ceiling is being used by the BUYERS
as the reason or excuse for low
bidding.
III 1t is the reason for bids
averaging Is cents a pound under
the ceiling average that has been
established, it should be taken off "
representative Sasscer maintained
that the low prices being offered
provide abundant proof" that there
Is no need for the ceiling to pre-
vent any upward spiral in prices.
Sasscer Fears Disaster.
Polntlng out that the tobacco crop
being offered for sale this year to-
tails only about II 900 900 pounds as
compared with about $1,000 900
pounds last year, Mr.. Sasscer de-
clared::
With half crop the cost of pro-
duction doubled and prices sharply
reduced, the effect will be disastrous
and destructive unless something is
done"
George sachse, geneAl manager
of the Maryland Tobacco Growers
Association, said farmers believe the
ceiling is "ridiculously low" because
1t gives them an income of only $3.50
an acre. He added that farmers
received such a figure in 194l and
expenses incurred in the growing
of tobacco have increased sharply
since that date. He also said that
growers had requested the OPA to
Ak the ceiling price at approx
mately 68 cents a pound.
"A survey conducted under the
auspices of the University of Mary
land showed that the increased cost
of growing in 1912 was $89.43 an
acre." Mr.. Sasche explained, which
means that net income in reduced
that much per acre under 1941
sales"