68 CIRCULAR 10 0, U. S. DEPARTMENT OF AGRICULTURE 



Again, well-known men. interested in warehouse property, were 

 accused of having supported the association because they wished 

 to unload unprofitable properties on the association. Several ware- 

 houses were purchased in what were known as " dead " markets, 

 that is. in towns and villages in which the small quantity of tobacco 

 offered for sale had necessitated the closing of the tobacco markets. 

 Business men in these towns were eager to have a market reopened. 

 Some of the warehouses bought under these conditions had. for a 

 time, been used as garages or storehouses and had greatly depreciated 

 in value. In some markets warehouses were opened merely to enable 

 the association to obtain members in those localities and possibly 

 with the knowledge that these markets would not operate. 



In a letter to the executive committee, dated October 10. 192*2. the 

 director of the warehouse department wrote : 



There are being operated in the bright and dark belts, this year. 145 markets. 

 TTe should next rear reduce this to 115 markets, as we opened this year a 

 great many markets, especially in eastern Carolina and South Carolina with 

 the view of helping the sign-up, and I think it did materially increase it. and 

 should be closed next year. On a good many of them we will not handle as 

 much as 250.000 pounds of tobacco. 



Realizing already at this date that all of the warehouses controlled 

 were not necessary the letter continued : 



I also desire to call your attention to the fact that this department is using 

 every effort to subrent its properties where not needed, for the storage of 

 cotton and other uses, and expects to receive a goodly sum from this source. 



That this policy continued into 1923 is borne out by the minutes of 

 the executive committee of February 5. 1923. in which it is stated: 



Director TVatkins reported that he was closing warehouse purchases as 

 rapidly as the legal department approved of titles, and so forth : that he was 

 renting surplus warehouses to good advantage and had other prospects. Had 

 no other report to make, but would like to get a committee to go with him 

 to four or five warehouses. 



In some tobacco markets all of the warehouses (three or four in 

 some instances) were purchased when one would have sufficed. Some 

 of these were never operated. Table 29 and Figure 15 give the 

 frequency of the number of warehouses purchased and the number 

 controlled by warehousing corporations in 1923. In the 149 markets 

 where it controlled warehouses the association had 255 warehouses. 

 In 82 markets of the 119 it owned US warehouses: in 72 out of the 

 149 markets it controlled 2 or more warehouses. In 41 markets it 

 controlled 2 warehouses, in 22 it controlled 3. and in 6 markets it 

 controlled 4 warehouses. In only 1 market did the association buy 

 as many as 4 warehouses, bnt in 6 it owned 3. and in 21 it owned 2 

 warehouses. 



Ill will developed toward the association among the townspeople 

 of some markets, because by taking all the warehouses the associa- 

 tion forced the nonmember growers to sell their product in other 

 markets where these growers then did much of their buying. 



Far too many warehouses were purchased or leased, and even in 

 the first year it was found necessary to sell, sublease, or otherwise 

 dipose of much of this warehouse property at a distinct loss. Far 

 too much space had been acquired not only for the 1922 crop but also 

 for the 1923 receipts which were larger. During the next two years 

 receipts fell off greatly, so even less space was necessary. 



