ANALYSIS OF TOBACCO GROWERS' ASSOCIATION 



67 



Table 28. — Changes in number of leased loarehouses each year by warehousing 



corporations 



Warehousing corporation, and kind of change 



U922 



1923 



1924 



1925 



M926 



Total 



Dark leaf: 



Leased. - 



19 



1 





 2 

 14 



4 

 3 

 19 



1 



3 



24 



2 

 3 



28 



1 



4 



24 



1 







21 



Relinquished 3 



i 4 

 19 16 



17 3 

 2 



17 



1 2 

 14 ; 12 



5 1 



2 4 

 22 19 



1 



5 1 



20 : 19 



4 j 1 



7 3 



25 23 



3 



6 4 



21 17 



9 



Under lease at end of year. 





Bright leaf: 



Leased 



30 



Relinquished 3 .. - -.. 



11 



Under lease at end of year. . 





Central Carolina: 



26 



4 



32 



Relinquished 3 . 





 26 



30 



1 



29 



30 



4 

 26 



2 



2 



29 



4 



13 



Under lease at end of year. . 





Eastern Carolina: 



39 



Relinquished 3 - ._ 



16 



Under lease at end of year ... 





South Carolina: 



38 





1 6 

 29 27 



21 











Totals all warehousing corporations: 



122 14 



2 ! 18 



120 116 



8 



15 



109 



14 ! 2 

 21 14 

 102 



160 



Relinquished 3 . 



70 



Under lease at end of year 

















i Feb. 8-Dec. 31. 

 2 Jan. 1-June 19. 

 1 Relinquished— warehouse destroyed, contract expired, or contract canceled. 



Actual deliveries of tobacco to the association during its first year 

 amounted only to 35.4 per cent of the production of the tri-State area 

 and were less during the following years, whereas at least 55 per cent 

 was expected. Expectations of delivery were too optimistic and 

 were based on uncertain grounds. If the association received the 

 quantity of tobacco anticipated, it is doubtful if many of the re- 

 ceiving points would have had too much warehouse space. The 

 association's method of handling tobacco required less space than 

 the auction-floor system because all tobacco of the same grade 

 was combined, and a longer period of marketing was possible. 



The policy of the purchasing committee was to buy or lease all 

 warehouse properties offered for sale or rent, in order to reduce 

 competition and to win the support and good will of the warehouse- 

 men and their customers. The owners of warehouses had been 

 assured, prior to organization, that it was to be the policy to cause 

 as little hardship as possible to them and that the association would 

 undertake to purchase or lease all warehouse property offered. 

 Before a sale or lease was concluded, a valuation of the property was 

 made by several supposedly disinterested persons as a valuation or 

 arbitration board, to arrive at a reasonable price. Many such 

 valuations were too high, as they were made by bankers and other 

 persons who had mortgages or other interests in the property, and 

 some warehouses are said to have been purchased at prices far in 

 excess of any of the valuations placed on them. In some districts, 

 it appears that directors, members, and even officials of the asso- 

 ciation who were personally interested in warehouses urged their 

 purchase upon the warehouse committee. 





