82 



CIRCULAR 10 0, U. S. DEPARTMENT OF AGRICULTURE 



pendix. A condensed statement of these expenses by years appears 

 in Table 34. The expenses in this statement have been grouped 

 under three headings : General overhead, carrying expenses, and re- 

 drying expenses. The general overhead expenses include the ex- 

 penses of operating the different departments and a proportionate 

 share of the organization expenses. 



Table 34. 



-Condensed statement of operating expenses (all pools) as of May 

 81, 1926 



Expense 



1922 crop 



1923 crop 



1924 crop 



1925 crop 



All crops 



General overhead * 



Dollars 

 2, 405, 658. 59 

 415, 673. 74 

 1, 534, 173. 21 



Dollars 



2, 524, 548. 95 

 1,011,190.32 



3, 503, 825. 07 



Dollars 

 1, 889, 034. 56 



591, 353. 55 

 2, 866, 701. 92 



Dollars 

 1, 395. 303, 79 



191, 724. 85 

 1, 682, 097. 05 



Dollars 



8, 214, 545. 89 



Carrying charges 



2, 209, 942. 46 



Redrying charges 2 



9, 586, 797. 25 







Total 



4, 355, 505. 54 



7, 039, 564. 34 



5, 347, 090. 03 



3, 269, 125. 69 



20. 011. 285. 60 







Rate per 100 pounds of tobacco 

 received, green basis 



2.66 



3.91 



5.15 



3.91 



3.77 











i The general overhead expenses include: (1) Head office expenses, (2) operating expense of warehouses, 

 (3) expense of operating field service department, and (4) part of organization expenses. 



2 The redrying expenses in 1924 and 1925 were charged with a part of the general overhead and warehouse 

 operating expenses, which were not included in 1922 and 1923. If these expenses had been charged to the 

 general overhead expense as in 1922 and 1923, the amount charged to redrying in 1924 and 1925 would have 

 been considerably reduced. 



The total expenses, as of May 31, 1926, for the different years 

 has been divided by the number of pounds of tobacco delivered to 

 the association each year. The per 100-pound expenses increased 

 each succeeding year except for the year 1925. Two factors ac- 

 count for the decrease in the cost per 100 pounds in this year. First, 

 carrying charges on most of the 1925 crop of tobacco on hand at 

 May 31, 1926, had accumulated for only a short period — less than 

 six months for dark-fired and sun-cured tobacco. Second, the as- 

 sociation did its own redrying in 1925 at a great reduction in cost. 

 In 1924, redrying expenses on the basis of all the tobacco delivered 

 amounted to $2.76 per 100 pounds, whereas the redrying expenses 

 for the deliveries of the 1925 crop were $2.01, a reduction of $0.75 

 per 100 pounds. On the basis of the tobacco actually redried in 

 each of the two crops the saving in redrying expenses is even more 

 apparent. The expense of redrying 83,384,000 pounds of the 1924 

 crop was $3.44 per 100 pounds; the redrying expense for 70,816,000 

 pounds of 1925 crop was $2.38 per 100 pounds. 



This indicates that the association made a saving of $1.06 per 

 100 pounds in redrying the 1925 tobacco, 40 as compared with the 

 cost of redrying the 1924 crop. 



Accumulated operating, carrying, and redrying expenses, allo- 

 cated to the different pools, are shown in Table 35. In Table 36, 

 for purposes of comparison, the expenses by years have been re- 

 duced to a per 100-pound basis. The general overhead expenses 

 were reduced to a per 100-pound basis by dividing the total overhead 



40 The comparison is not quite fair as part of the difference is due to higher storage 

 charges for the 1924 crop. 



