Business & Finance: Better Burley

With the possible exception of old Bourbon whiskey, the most important things in the lives of Kentuckians are the Derby in May and the tobacco auctions in December. Last year, because Kentucky’s famed burley tobacco began to sell as low as $4.61 per 100 Ib. (about one-half 1930 levels), the growers at one of the auctions muttered curses, shouted threats, then took to pelting the manager of the “floor” (warehouse) with apples, broke up the auction in a general riot. Several other auctions had to be postponed. Last week Kentucky growers were jubilant. In addition to a bumper crop of fine quality, prices were from 50% to 100% above last year’s, soaring above $14 per 100 Ib. at Lexington.

Kentucky burley is used for pipe tobacco and cigaret blending. Wall Street. eyeing the silent war between the big makers of 15¢ cigarets and the makers of 10¢ brands, felt sure that the 15-centers were boosting the price (TIME, Sept. 19); high tobacco prices would cut deeply into the slim profit margins on which the 10-centers work but would hardly be felt by the leading 15¢ companies. Kentuckians did not care much, for they will jingle in their pockets some $25,000,000 more than they did last year, will go to the Derby anyway.