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



large companies if they supported the association. So great is the 

 importance of the large tobacco companies and the tobacco trade in 

 the South that large groups of independent merchants and bankers 

 are afraid to incur their displeasure. The association was opposed 

 in some of the smaller markets because it took charge of all the 

 warehouses, and thus caused the nomnembers to haul their crops to 

 other markets where they also did their shopping. Trade during the 

 tobacco-delivering period is important and lucrative because it is 

 then that the growers have cash and do most of their buying of 

 supplies for the coming year. 



Previous to the formation of the Tobacco Growers' Cooperative 

 Association, because of the advent of good roads and autotrucks in 

 parts of the tri-State area, there had been a trend toward the de- 

 velopment of a few large tobacco markets instead of the many 

 small markets and receiving places. The cooperative not only used 

 many of the lesser receiving points but it reopened some which had 

 closed during the time of the auction system. The larger markets, 

 like Wilson and Winston- Salem in Xorth Carolina, felt that this 

 prevalence of many small markets would interfere with the cen- 

 tralization of markets and thereby retard their development. As a 

 consequence these large markets were hostile to the association. 



During the organization period the attitude and attacks of some 

 of the writers and speakers who were working for the cooperative 

 tended to antagonize some groups who otherwise might not have 

 openly and actively opposed the association. Later, every mistake 

 or suspicion of a mistake was capitalized by the opponents of the 

 association to discredit it, and this type of propaganda was given 

 wide publicity among the growers. Thousands of dollars were 

 spent in propaganda to defeat the organization. Gradually the 

 tactics of those opposed to the association triumphed and their 

 forces increased in strength. Soon the whole of the tobacco terri- 

 tory of the three States was divided into two groups, proassociation 

 and antiassociation. The forces arrayed against the association 

 gained strength from members who had violated their contract. 

 The attacks of the opponents of the association contributed largely 

 to the breakdown of the membership morale. If members had de- 

 livered their tobacco, as they had undertaken to do, the association 

 might have succeeded, but when during the first year many failed 

 to do this the result was inevitable, in spite of the tremendous sacri- 

 fices and heroic efforts made by the more loyal members and leaders. 



PROGRESS DURING OPERATION OF THE ASSOCIATION 

 CHANGES IN POLICIES 



In 1922 the members, directors, and officials of the Tobacco Grow- 

 ers' Cooperative Association had much to learn. The members were 

 unaccustomed to marketing their products cooperatively. The prac- 

 ticability of the cooperative marketing of tobacco had not yet been 

 tested. An organization had to be planned and brought into ex- 

 istence which would perform a variety of functions for the tobacco 

 grower. This organization would need to be strong and beyond 

 criticism in order to meet the attacks which its existence was cer- 

 tain to provoke from the established tobacco-marketing agencies. 



