AMBRICAN TOBACCO TYPES, USES, AND MARKETS aa 
and holding of such tobacco for sale when the supply situation should 
be found more favorable. 
The procedure in this as in most other associations now functioning 
differs fundamentally from the procedure followed in former years. 
Then the association set up its own receiving, redrying, and storage 
facilities to the detriment of auction markets and privately owned 
redrying and storage companies. Present operations contemplate 
the fullest possible utilization of existing marketing machinery and 
leaf-handling facilities. 
Maryland tobacco is sold on the Baltimore market (a closed-bid 
market that deals in packed tobacco) or through auction warehouses 
at various locations in southern Maryland. The cooperative that 
handles Maryland type tobacco operates exclusively on the Baltimore 
market. The association does not operate on a pool basis, but sells 
the tobacco of individual growers on an agency basis. (See Closed-bid 
Auctions, p. 73.) 
The auction method of marketing prevails through the fire-cured 
and dark air-cured tobacco areas. Growers identified with all the 
associations have the opportunity of offering their crop on public 
auction floors, and since all fire-cured markets have Federal inspection 
and market news service, the growers can ascertain at once whether 
the price received is equal to or higher than the advance obtainable 
from the association, on a grade basis. If the bid at the auction is 
not acceptable, the grower may reject the bid and the tobacco will 
be delivered to the association. When the tobacco is pooled it is 
commingled by grade, and the individual lots lose their identity. 
Later when the tobacco is sold the grower receives payment for his 
portion of the pool after the amount of the advance and the associa- 
tion costs have been deducted. Certificates of grade are issued by 
inspectors of the United States Department of Agriculture at the 
time the tobacco is prized and these form the basis of loans by which 
the cooperative is financed. In recent years these associations have 
obtained their financing from Government agencies. 
The grower’s contract employed by these associations is more 
flexible than any heretofore used by tobacco cooperatives. Under this 
contract, the grower has the option of selling his crop at the farm 
instead of over the auction floor if he so desires, and of offering his 
tobacco at an auction warehouse of his own selection. The marketing 
agreement stipulates that the grower shall pay the association a small 
fee on tobacco sold otherwise than through the association. 
The cooperative that handles northern Wisconsin cigar-type to- 
bacco disseminates information relating to production and handling 
tobacco, such as selection of proper varieties, planting, harvesting, 
and classification of tobacco in preparation for sale. Packing and 
warehousing services are performed for the association’s members. 
The association sells the tobacco on an individual basis for its mem- 
bers; practically no pooling is done. The marketing agreement per- 
mits the grower to sell his tobacco outside the association if he elects, 
in which event he pays the association a fee on the tobacco so sold. 
This is designed to cover other services rendered the grower by the 
association. 
The cooperative that handles cigar-leaf tobacco in Ohio receives 
the tobacco from its members and grades it, stores it, and, pending 
sale, makes advances to 1ts members according to grade, markets the 
