ANALYSIS OF TOBACCO GROWERS ' ASSOCIATION 85 



chiefly from economies in the operation of the old-belt and dark-fired 

 warehouses. The difference between the share of general overhead 

 expenses of the different pools was due to the fact that expenses were 

 prorated to the pools on a basis of both weight and value. 



The total redrying expenses also tended to increase not only 

 actually but relatively as larger proportions of each crop were re- 

 dried. In 1923, more than twice as much tobacco was redried as in 

 1922. The actual expense per 100 pounds of redrying was the same 

 ($1.64 on a green basis) 42 but some of the other expenses included in 

 the redrying, notably freight to storage warehouses and sampling 

 and recoopering, more than trebled. The total redrying expenses 

 were also increased by the inclusion of a charge for labor needed to 

 handle redried tobacco. This charge was not included in 1922, hav- 

 ing evidently been charged to general overhead expenses. In 1924, in 

 spite of the fact that the Edmondson Tobacco Co., in which two of 

 the association's executive officers were interested, reduced its redry- 

 ing charges to $1.50 per 100 pounds, the total cost of redrying alone 

 remained at $1.64. In 1925, when the association did its own redry- 

 ing, the cost of redrying only was reduced to 98 cents per 100 pounds 

 on the green basis — a reduction of 66 cents. 



Carrying charges per 100 pounds depended upon the quantity and 

 value of tobacco that was redried and the length of time it was 

 stored. The carrying charges were heaviest for the pools in which 

 large quantities of tobacco were redried and stored for a considerable 

 length of time. The carrying charges per 100 pounds for the 1925 

 crop were small because most of the 1925 tobacco had been stored 

 for only a few months at the time of the receivership. 



In North Carolina and South Carolina the warehouse charges on 

 tobacco sold for farmers on the auction floor are fixed by law. The 

 following charges were in effect during the four years that the 

 association was in operation : 



Weighing charges: 10 cents per lot of 100 pounds or portion thereof with 

 a minimum charge of 10 cents per lot. 



Auction charges: 15 cents per lot of 100 pounds (minimum 15 cents) ; 25 

 cents per lot of 200 pounds or more. 



Commission 2% per cent of gross proceeds of sale. 



A questionnaire was addressed to warehouse operators in Virginia 

 to ascertain the cost of selling tobacco under the auction-floor sys- 

 tem of marketing during the years 1922 to 1925. In Virginia, ware- 

 house charges are fixed by the tobacco board of trade in the different 

 marketing centers, and some variation is apparent. m In most of the 

 large marketing centers the warehouse charges are the same as they 

 are in North Carolina and South Carolina. In some of the smaller 

 markets a flat charge is made to include all services, but as a rule this 

 amount did not vary greatly from the charges above enumerated. 

 At Richmond, where the bulk of the sun-cured tobacco is sold, the 

 variation in the charges is of some importance. A weighing charge 

 of 15 cents and an auction fee of 25 cents is deducted from every 

 pile of tobacco sold, regardless of weight. In addition, a commis- 

 sion of 3 per cent is deducted from the gross proceeds of the sale. 



The cost of marketing 100 pounds of tobacco sold, based on the 

 average price prevailing in the different areas under the auction-floor 



42 Obtained by dividing tbe total cost of redrying only (exclusive of storage and other 

 charges) by the weight of tobacco redried (on a green basis). See detailed redrying 

 expense account in appendix Table 4. 



