ANALYSIS OF TOBACCO GROWERS* ASSOCIATION 



87 



higher to the grower, and tended to increase during the last three 

 years as deliveries of tobacco decreased. But even on this basis 

 it must be kept in mind that the association was rendering services 

 to its members and to the tobacco companies that are not given by 

 the auction-floor warehouses. The differences in the charges were 

 least in the case of sun-cured tobacco ; the services given by the asso- 

 ciation were made at less cost because of the comparatively easy 

 and quick sale in the green state of most of the tobacco of this pool. 

 The legal expense incurred in attempts to enforce the membership 

 contract was a large item of cost. During the four years, $367,862.14 

 was spent in legal expenses. To offset this expense, $165,030.33 was 

 collected from members as liquidated damages and expenses. Col- 

 lection of this sum, although a source of some income, was harmful, 

 as it merely served to aggravate the dissatisfaction among members. 

 According to a statement issued by the receivers, $295,767.03 was 

 paid to attorneys and legal counsel during the four years the associa- 

 tion was in operation. The net legal expense for the four years, 

 the legal expenses less the liquidated damages collected, was over 

 $200,000; half of this was incurred on the 1923 crop. 



Table 38. — Selling charges under the auction-floor system compared with the 

 selling charges of the association and deductions for all handling charges 

 made by the association, 1922-1926 



Area (pool) 



System and kind of charge made 



1922 

 crop 



1923 

 crop 



1924 

 crop 



1925 

 crop 



Sun-cured 



Auction floor 



Dollars 

 0.83 



.94 

 2.14 



Dollars 

 0.80 



.98 

 1.57 



Dollars 

 0.84 



1.42 

 1.50 



Dollars 

 0.89 





Association: 



Selling only i 



1.77 





All handling 2 



1.77 





Difference in charges: 



Selling only 







.11 

 1.31 



.18 

 .77 



.58 

 .66 



.88 





All handling 



.88 





Auction floor 





Dark-fired 



.74 



1.24 

 2.05 



.70 



1.31 

 2.68 



.74 



1.74 

 4.98 



.66 





Association: 



Selling only l 



1.70 





All handling 2 



1.82 





Difference in charges: 







.50 

 1.31 



.61 

 1.98 



1.00 

 4.24 



1.04 







1.16 





Auction floor 





Old-belt. 



1.01 



1.61 



2.54 



.79 



1.40 

 3.75 



.79 



1.86 

 4.63 



.68 





Association: 



Selling only i 



All handling 2 



1.46 

 2.34 





Difference in charges: 







.60 

 1.53 



.61 

 2.96 



1.07 

 3.84 



.78 





All handling ... 



1.66 





Auction floor.. 







.99 



1.45 

 2.70 



.85 



1.41 

 3.45 



.89 



1.98 

 6.26 



.89 





Association: 



Selling only ! 



2.14 





All handling 2 



4.86 





Difference in charges: 



Selling only 







.46 

 1.71 



.56 

 2.60 



1.09 



5.37 



1.25 





All handling 



3.97 





Auction floor .. ... 







.83 



1.29 

 2.98 



.73 



1.41 

 4.18 



.69 



1.69 

 4.98 



.67 





Association: 



Selling only ' 



1.79 





All handling 2 



4.56 





Difference in charges: 







.46 

 2.15 



.68 

 3.45 



1.00 

 4.29 



1.12 





All handling 



3.89 









1 General overhead charges only, excluding redrying 



2 Includes all charges made on members' tobacco 

 property and for reserves. 



and carrying. See also footnote 2, Table 34, p. 82. 

 except the deductions for purchase of warehouse 



