Evening star., 1944-05-11
Tobacco Sellers
Awaiting 0PA
Eight Warehouses
In Maryland Close
Until Agency Acts

Southern Maryland's eight tobacco
warehouses remained closed today
awaiting action by the ONCE Of
Price Administration on protests of
tobacco sellers against an average
50 cents a pound ceiling price es-
tablished prior to the market OPEN
ing Monday.
Edwin r. 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 Sc cents, with a top of 10
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 for
the last two years. The Maryland
tobacco was placed under ceiling
price regulations, it was said, to pre-
vent 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 to
sellers, and at the same time win
protect the price structure. After
ALL" he said, I'VE also have our job
to do"
While growers and warehousemen
declared the ceiling prices were
running" the Maryland farmers,
since buyers were only bidding to
the average price for top grades Of
tobacco, the head buyer for one Of
the large cigarette manufacturing
companies denied this.
Price of so Cents Offered.
This buyer. who asked that his name
be withheld, said his company had
bid more than go cents pound for
some tobacco during the first day OF
the sales. He said some warehouse
men also had bid in tobacco for as
much as go cents a pound.
"We have not been ordered by our
company to keep our top bids to the
average ceiling price," the buyer
said. I'VE have only been ordered
to see that our average prices at the
end of the market have not exceeded
the 52-cent ceiling.
"A large part of the crop now on
the warehouse floors is unsuitable
for cigarettes" he continued, "and
we wouldn't buy it at any price. The
only thing + know it could be used
for is in cheap cigars"
Both tobacco buyers and Agricul-
ture Department experts agreed that
the Maryland crop this year was far
under the quality of last years crop.
Some observers doubted that the
price would be greatly affected if
the ceiling price was lifted entirely.
OPA officials, however, admitted
that in the fue-cured markets the
average ceiling prices had narrowed
the spread between top and low
prices paid. Observers at Marlboro
pointed out that with tobacco at
low quality this spread was mar
rowed to the point where buyers
were forced to control their top
prices to about the average ceiling
in order to protect themselves on
the lower types.