86 



CIRCULAR 10 0, U. S. DEPARTMENT OF AGRICULTURE 



system of marketing, is shown in Table 37. The average costs would 

 be somewhat higher than these because a great deal of tobacco is sold 

 in lots of less than 100 pounds for which minimum weighing and auc- 

 tion charges are levied. As the commissions are a percentage of the 

 gross price, the deductions made in this table are only approximately 

 correct, but for the purpose of comparison these figures are fairly 

 satisfactory. 



The purpose of obtaining the cost of selling under the auction- 

 floor system was not to compare it with the costs under the coopera- 

 tive but for the purpose of obtaining the average net amount paid 

 to the growers under the two systems. Comparisons between the 

 expense of marketing tobacco through a cooperative association and 

 through an auction-floor warehouse are of little significance because 

 the two methods do not render comparable services. 



Table 37. — Estimated cost of selling 100 pounds of todacco under the auction- 

 floor system 



Charge 



1922 

 crop 



1923 

 crop 



1924 

 crop 



1925 

 crop 



Sun-cured (Richmond market) 



Weighing fee... 



Auction fee 



Commission at 3 per cent of gross sell- 

 ing value. 



Dollars Dollars 

 0. 15 0. 15 

 .25 



40 



Total. 



Dollars 



0.15 



.25 



Dollars 



0.15 



.25 



.49 



.89 



Dark-fired. 



Weighing fee 



Auction fee... 



IVi per cent commission. 



Total.. 



.10 

 .15 

 .45 



Old belt (old-belt area of North 

 Carolina and Virginia) . 



Weighing fee 



Auction fee 



2M per cent commission. 



.10 

 .15 



.54 



.10 

 .15 

 .54 



.10 

 .15 

 .41 





Total 



Weighing fee „ 



1.01 



.79 



.79 



.68 



North Carolina (new-belt area 



.10 



.15 

 .74 



.10 

 .15 | 

 .60 



.10 

 .15 

 .64 



.10 



equal to eastern Carolina 



Auction fee ... 



.15 



pool) . 



2M per cent commission 



.64 





Total 







.99 



.85 



.89 



.89 





Weighing iee 







.10 



.15 



.58 



.10 



.15 



.48 



.10 



.15 



.44 



.10 





Auction fee 



.15 





Commission at 2H per cent of gross 

 selling value 



Total 



.42 





.83 



.73 



.69 



.67 



The charges per 100 pounds of handling tobacco by pooling areas 

 under the cooperative and auction-floor system is summarized in 

 Table 38. The association's charges were considerably higher in 

 every case, as would be expected because of the many additional 

 services rendered. The differences in the charges were greatest 

 for the 1924 crop. Included in the association's charges of market- 

 ing 100 pounds of its members' tobacco was the cost of redrying 

 and storing, for which no similar charge was included under the 

 auction-floor system. 



It would perhaps be more equitable to compare the general over- 

 head charges only, or the charges of selling only, of the associa- 

 tion with the charges for marketing tobacco under the auction-floor 

 system. Such a comparison is made in Table 38. Even on this 

 basis, the costs of operation through the association were much 



