The warehouseman or his representative starts 

 the bidding. The auctioneer calls out the starter's 

 bid, receives other bids, and announces the 

 highest bid received and the buyer purchasing 

 the lot. 



Various quick signs are made by the buyers and 

 accepted as bids by the auctioneer, and the 

 auction sale moves along very rapidly. In the flue- 

 cured district, the rate of sales is 500 lots per 

 hour, and in burley, 360 baskets. 



As soon as the sale is underway, laborers begin 

 moving the auctioned tobacco off the floor and 

 loading it on trucks to be taken to the processing 

 facilities of the various buying companies. 



A farmer may reject the bid price offered for any 

 lot of his tobacco. He does by "turning" the ticket, 

 that is, by folding it with a crease, tearing off a 

 portion, or otherwise mutilating it. Such lots are 

 usually "dressed up" and put back in line for later 

 sale on the same warehouse floor. It is hoped that, 

 at the second sale, it will be bid in at a higher price. 

 However, the grower may take the tobacco to 

 another warehouse or market. 



The grower is paid for his tobacco by the ware- 

 houseman on the same day it is sold. The amount 

 due on each lot is figured immediately after the 

 sale. Selling charges are deducted and a check is 

 issued the farmer against the warehouse account. 

 Buyers usually settle with the warehouseman 

 within a few days after the sale. Selling charges 

 vary by types of tobacco, ranging from 3 to 6 

 percent of the gross value. 



Country Sales— Fire-cured and 

 Cigar Leaf 



In recent years 30-50 percent of the fire-cured 

 tobacco produced in the Kentucky and Tennes- 

 see area has been sold directly at the farms. In 

 earlier years, this farm or "barn-door" buying of 

 the leaf was practiced to an even greater extent. 



In most of the cigar-leaf tobacco districts, 

 farmers contract for the sale of their tobacco at 

 the farm, a system known as "barn-door" 

 marketing. This may be done any time during the 



A USDA tobacco inspector grades tobacco in a flue-cured 

 auction warehouse. 



The auction sales ticket carries the buyer's name, grade of 

 the tobacco, weight and the price bid for the lot. 



Buyers move through a flue-cured auction warehouse bidding 

 on tobacco. 



16 



The auctioneer leads a "set of buyers" for various companies 

 through the fast-paced auction process. 



