Parker Tobacco Company

Parker Tobacco Company

Parker Tobacco Company was tobacco redrying and threshing plant that became a large tobacco leaf purchasing, processing, marketing and commercial storage operation in Maysville, Kentucky.

History

In 1932, Alex Parker, Sr., along with Frazer LeBus, Frank Vaughn and Fall City Tobacco of Louisville, purchased and operated a small tobacco redrying and storage facility.(1) Located on Buckley Place, near the railroad underpass, the business prospered to the point that Parker bought out his partners in 1934.(3) At this point, the facility comprised of one redryer and packing facility, a small office and green prize rooms.

During the 1930s and 1940s, Parker Tobacco propspered by purchasing and processing tobacco on a commission-only basis for three to four Kentucky dealers and three of the domestic cigarette manufacturers.(3) After 1946, Parker Tobacco grew steadily by doing commission packing and storing for the United States Government (Pool) and by doing increased business with the domestic tobacco companies and dealers.

By 1958,(7) Parker Tobacco had outgrown its facilities, and it purchased a larger processing plant along Forest Avenue, owned by the R.J. Reynolds Tobacco Company who had moved to Lexington.(3) The processing facility, constructed in 1918, was in excellent condition.(7) The building was enlarged and opened on September 23, 1925, featuring 225,154 sq. ft. of space and room for 600 employees.(9)

By this time, the tobacco industry was changing as the tipping and threshing of the leaf in its ‘green state’ had become technologically and financially viable. In 1961, the company installed a large, modern threshing line that allowed the company to handle purchases in leaf, bundle or strip form. Up to this point, 99% of the business was strictly buying and processing on commission.(3) This changed once the plant was modernized; the company began beginning to purchase tobacco for their own account in the burley and flue cured markets. It began shipping tobacco back to Maysville for sale to the customers. During this expansion, they enlarged their buying and selling to the domestic companies and started exploring the international markets for new customers.

It was during this time that Parker’s workforce topped 500 with a payroll of $750,000.(9)

By 1969, due to an increased demand of cigarettes worldwide and the general conditions of the government support programs, the Parker Tobacco Company expanded overseas when it purchased a 25% (3) interest in the Exportadora Catarinense de Ltda (EXCA) of Timbo, Brazil.(1) Under the reign of Parker, EXCA underwent a major expansion that led the facility to become one of the major exporters of the flue cured and burley as well as dark air cured tobaccos. The Brazil operations were also consolidated into a new, 41-acre facility in Timbo under a four-stage contract. It then purchased an additional 50% in 1970.(9)

During this time, Parker Tobacco became involved with markets in Malawi and Rhodesia in southern Africa for ten years.(9)

The Parker Tobacco Company also partnered with the Dibrell Brothers, who pioneered production and exportation of burley tobacco in the Honduras, forming Extaho.(9) It later set up accounts in most of the developed countries and expanded sales by ‘leaps and bounds’.(3)(9) It became the first tobacco company to introduce off-shore burley to the United States market. It soon not only handled tobacco in those foreign countries, but processed them; previously, the facilities would be utilized only three to four months a year, but after the large international expansion, the plant would be used eight to nine months of the year.

In 1974, the Parker Tobacco Company began looking for additional businesses to better utilize the employees and facilities, and to generate revenue, especially during the off-season.(3) At this point, Parker had a payroll of more than $1.6 million and had 150 full-time employees and 450 seasonal workers.(9) It looked at numerous business operations before concluding with an agreement with the Speedling Company of Sun City, Florida to produce seedling plants in a patented plastic tray in a greenhouse facility. Under the Parker reign, numerous greenhouses were constructed and the venture flourished.(3)

Parker International

By 1974-75, Parker Tobacco’s customers included “eight domestic manufacturers, the Burley Tobacco Growers Cooperative Association, three foreign manufacturers and through direct export, and other foreign manufacturers through more than ten U.S. dealers.”(9)

On October 14, 1976 (2), Parker International was incorporated to provide an orderly administrative group to manage the various enterprises and subdivisions of Parker Tobacco. In December, the newly formed corporation acquired 100% of the capital stock of the Parker Tobacco Company on a four-for-one basis (1), with approximately 90% of the shares of Parker International owned by the Parker, Hillenmeyer and Chamness families. The new company was as a result of its international expansion and its growth from a mere redrying facility, into one that processed tobacco from other countries worldwide.

By 1980, the company hosted 83 permanent employees which bloomed to 314 workers during the burley purchasing and processing season (2). It’s facility had grown to 200,000 square feet.(6)

In 1985, Parker Tobacco exited its interests in Honduras.(9) At its peak, Parker Tobacco Company was worth $5 million. On average, 18 million pounds of tobacco was processed through the plant every year.

The company began a slow decline, aided in part due to declining smoking rates in the United States, even as tobacco usage increased in China, India and Japan.(9) The elimination of government quotas also financially hurt the company. The issue was compounded further when the burley cooperative refused to participate with Parker Tobacco due to quality issues.(4)

Parker processed little to no tobacco in 1995 and 1996, and was forced into Chapter 11 in 1997 after a poor growing season that year compounded matters. The facilities were auctioned one year later, which included the main processing plant, numerous warehouses and equipment. Sam Parker, son of Parker Tobacco Company President Alex Parker, paid $955,000 for the bulk of the company’s properties. He intended at one point to reopen the business as a redrying facility under Kentucky Tobacco Processors (7).

May 22, 2007 Fire

Shortly before 10 PM on Tuesday, May 22, 2007 (6), a four-alarm fire began in the prize and redrying room at the rear of the factory.(9) The facility, having stood vacant since 1997, was partially engulfed in flames by the time firefighters arrived. Several explosions occurred during the blaze, which was blamed on propane tanks on tow motors that remained inside the building (7). The Maysville Fire Department sent multiple units and requested additional trucks from Orangeburg, Washington, Dover, Lewisburg and Aberdeen Volunteer Fire Departments, along with a ladder truck from the Ripley Fire Department; over one-hundred firefighters responded to the call (5). By 11 PM (6), the fire was contained and the fire was extinguished by 1 AM although several hotspots remained. Most of the volunteer fire departments left the scene by 3 AM (7).

At 9 AM, a trackhoe was brought into the site to begin demolition of the rear wall of the factory to create a trench through the center of the building (7). The trench, which extended from the alley on the east side of the building to the west side, located hot spots that were blocked by the collapsed structure. One hour later, a Kentucky State Police arson investigator was on the scene investigating the cause (6). The investigator conducted interviews with the fire personnel and Alex Parker, the former owner of the building. By 11 AM, enough of the building was demolished that the KSP investigator could access the interior of the structure to begin the investigation as to the cause of the fire (7).

The fire, which is most likely an attempt at arson (8), was not the only one of the night. An arson attempt around 11:30 PM Tuesday at the nearby Duke Warehouse failed to catch fire, despite the six to eight attempts using a liquid material sprayed onto plywood. The damage to the warehouse was minimal.

Demolition

In early March 2010, with no viable use for the property, Sam Parker contracted out with a demolition contractor to raze the Parker factory.(9) Plans call for demolition of the administrative offices and the processing plant to the north.

Gallery

• Photographs of Parker Tobacco Company, 1997-2011 »

Sources

1. “A Brief History.” Parker Tobacco Company Summary, 1980. Parker Tobacco Company, Inc. pg 1.
2. “Statement of purpose.” Parker International Summary, 1980. Parker Tobacco Company, Inc. pg. 1.
3. “Statement to all members and stockholders.” Parker Tobacco Company Summary, June 1, 1976. Parker Tobacco Company, Inc. pg 4.
4. Stahl, Matt. “Sam Parker top bidder at auction.” Ledger Independent (Maysville), August 1, 1998. April 2, 2007.
5. “Parker Tobacco Warehouse damaged in fire.” Ledger Independent (Maysville), May 23, 2007. May 23, 2007.
6. Maynard, Misty. “Parker fire interrupts relaxing night.” Ledger Independent (Maysville), May 23, 2007. May 23, 2007.
7. Toncray, Marla. “Long night for firefighters.” Ledger Independent (Maysville), May 23, 2007. May 23, 2007.
8. Maynard, Misty. “Another warehouse target of fire.” Ledger Independent (Maysville), May 23, 2007. May 23, 2007.
9. Toncray, Marla. “Parker Tobacco: The end of an era.” Ledger Independent (Maysville), 5 March 2010. 12 March 2010 Article.