76 CIRCULAR 249, U. S. DEPARTMENT OF AGRICULTURE 
discontent. In consequence, defections in membership rapidly in- 
creased, demonstrating the frequently observed phenomenon that 
growers will display enthusiasm for joining a cooperative organization 
in times of oversupply and low prices, but are apt to break away 
from the organization when changing conditions bring about higher 
returns for their crop. 
Associations acquired facilities at different locations throughout 
their territory with a view to performing various services incident to 
marketing tobacco for.their members. In view of the large-scale 
character of their operations and the policies pursued by their manage- 
ments, it was probably inevitable that these cooperatives should incur 
the opposition of those concerned with marketing tobacco, such as 
warehousemen, buyers, and manufacturers. The opposition of those 
various groups ‘increased, and the failure of the growers’ organizations 
and those groups to develop mutually helpful working relations un- 
doubtedly represented an important factor in the failure of the cooper- 
atives to survive. 
Tobacco cooperatives more than a decade ago abandoned the idea 
of controlling prices through monopoly influences, and there is a 
marked difference between the associations now operating and the 
large-scale organizations which functioned in the early 1920's. 
Contracts with growers have been liberalized, and associations are 
generally organized according to the type of tobacco handled by them. 
Pooling is no longer considered an indispensable function of a tobacco 
cooperative. Rather, the objective is to move the tobacco into the 
usual channels of trade as rapidly as possible. Among cooperatives 
currently operating under stabilization plans sponsored by the Gov- 
ernment, pooling is resorted to only as a means of taking off the market 
such tobacco as fails to sell at or above minimum prices established 
according to grade. In effectuating this policy the present practice 
of associations is to utilize existing marketing facilities, such as public 
auction warehouses, whereas in former years the cooperatives set up 
receiving plants and sought to eliminate the auction market. 
Functions of the associations usually include one or more activities, 
such as advice on curing procedure, making advances on stored to- 
bacco pending sale, marketing, warehousing surplus tobacco, and in 
some cases purchasing machinery and equipment and general farm 
supplies for growers. In recent years tobacco cooperatives have given 
increased attention to acreage control and crop-adjustment programs 
of the United States Department of Agriculture, and have had an 
important part in influencing grower attitude toward these programs. 
At present tobacco cooperatives are operating in Maryland; the 
dark tobacco areas of Virginia, Kentucky, and Tennessee; the cigar- 
leaf areas of Ohio and Wisconsin; and the Burley tobacco district of 
Kentucky and surrounding States. 
There are two cooperative associations in the Burley district, one 
of which was organized about 1921 but ceased to handle tobacco in 
1925, and a new association which was incorporated in 1940, but did 
not undertake marketing activities in that year. In January 1941 
the older association resumed operations under a loan agreement with 
the Commodity Credit Corporation, the essential feature of which 
was the removal from the auction markets of tobacco failing to sell 
at minimum prices established according to grade, and the prizing 
