212 MASS. EXPERIMENT STATION BULLETIN 193. 



the grower receives for 350 pounds. The wholesale distributor is included 

 in the chain of middlemen because he handles a considerable amount of 

 tobacco. 



Distrilsution of price receivec 

 for case of 350 ITds . of 

 tolDacco. 1917. 



Manufacturer pays $248.50 



^>. 



Dealer's margin over expenses 



of sorting, casing, shrinkage, 



storing and selling 



Dealer's ••profit'* |105 



Total expenses of handling, 

 packing and selling 

 Dealer's expense |42 



Landowner's profit — $18.55 



Cost of production- "S82.9 5 

 Farmer receives $101.50 



Fig. 19. — Sun-grown tobacco. Analysis of spread between grower and manufacturer on case 

 of 350 pounds, 1917. Needless to say the figures are assumptions based on averages. 



Farmers' Prices for Shade-grown Tobacco. 

 The shade-grown industry is peculiar in that the crop is largely produced 

 by large sjmdicates and manufacturers. The American Sumatra Company 

 has 1,500 acres in shade tobacco in Connecticut and Massachusetts. This 

 company raises its own tobacco, sorts, packs and sells directly to manufac- 

 turers. The same is true of practicallj^ all the large syndicates. As 

 previously stated, tobacco grown on contract by the farmer in 1917 ranged 

 from 75 cents to $1.10 in the bundle, with the bulk at 85 cents. The range 

 for the previous years was from 60 to 80 cents a pound, with the average 

 at about 70 cents. 



