115 



In addition there were many policies and practices to be worked 

 out in detail. 



The association made mistakes, many of them. However, many of 

 these mistakes were corrected when the need was felt. By the time 

 the association had passed into the control of receivers it had, to 

 some degree at least, corrected the majority of its errors, but some 

 were irreparable in whole or in part. Following is a list of some of 

 the most frequent criticisms of policies, the date on which the policy 

 began, and the date and correction of the policy, if any change or 

 correction was made. The criticisms given here are considered some 

 of the most valid. Those with no foundation of fact are not included. 



1. Purchase and lease of unnecessary warehouse space (1922) ; corrected 

 January 15, 1923, by lease or sale and cancellation of contract. 49 



2. Payment of excessive prices for warehouses (1922) ; correction — prac- 

 tically all warehouses owned were purchased during the first year; only one 

 was purchased after the second year. 



3. Salaries of officials excessive (1922) ; these were voluntarily reduced, 

 first in 1923 and each year thereafter, from $206,774.98 in 1922 to $74,283.21 

 in 1925. 



4. Salaries of employees too high (1922) ; corrected in 1923 by a gradual 

 reduction in average salaries of lesser officials and employees. 



5. Excess in personnel, especially in warehouse department (1922) ; cor- 

 rected in 1923 by a consolidation of some positions and a reduction in total 

 number of employees. 



6. Redrying by officials of the association (permission given June 9, 1923) ; 

 beginning March 10, 1925, the association operated its own redrying plants 

 in time for the 1925 crop. 



7. Secrecy in regard to the affairs of the association (1922) ; corrected 

 March 18, 1924, by the adoption of a " pitiless publicity " policy in regard to 

 its affairs. 



8. Field service work inadequate (1922) ; the field service department was 

 enlarged March 18, 1924, and has been strengthened during the succeeding 

 years. 



9. Advances on tobacco too small (1922) ; this policy was changed during 

 1923 and 1925. From 40 per cent of the bankers' valuation for the 1922 crop, 

 the payments were advanced to 50 per cent in 1923 and 1924, and to 65 per 

 cent in 1925. 



10. Payments too slow and far between (1922) ; since 1924, the association 

 has attempted to make payments before all the tobacco has been sold ; also, 

 the agricultural credit corporations have been formed. 



11. Inability of members to be released from contracts (1922) ; no change. 



12. Refusal to sell green tobacco to dealers (1924) ; no change. 



13. Directors hired as officials on salaries (1922) ; the number has decreased 

 from 9, in 1922, to 4, in 1925. 



14. Dissatisfaction with grading (1922) ; since 1923 a continuous effort has 

 been made to avoid unfairness by the supervision of graders.' 



15. Objections to Watkins and Patterson ; resignations accepted March and 

 April, 1926. 



16. Too much litigation and legal expense (1922) ; on March 18, 1924, the 

 •association adopted the policy of " diplomatic persuasion " instead of threats 

 and legal action. 



17. Arbitrary changing of grade prices on several eastern Carolina markets 

 (1923) ; this policy was corrected within a few days by returning to first grade 

 prices. 



18. Too many high-priced automobiles owned by the association 50 (1922) ; on 

 December 22, 1925, the association reached the decision that no more automo- 

 biles were to be purchased, those on hand were to be sold, and henceforth em- 

 ployees hired would furnish their own cars. 



49 The association was purchasing and leasing warehouses in some markets during its 

 first years and at the same time was selling and subleasing warehouses in other localities. 



50 Of 48 automobiles purchased in 1922-23, 2 cost between $1,500 and $2,500 ; 18 cost 

 between $500 and $700 ; 28 cost less than $500. Of 59 automobiles purchased during 

 1923-24, 7 cost over $1,000; all other cost less than $700. 



