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



growers are both whites and negroes ; many have little education ; a 

 relatively large percentage are illiterate. They were, with few ex- 

 ceptions, inexperienced in cooperative marketing and had little 

 understanding of its principles, possibilities, limitations, and neces- 

 sities. These conditions among a large proportion of the farmers 

 made members peculiarly susceptible to the lure of higher cash 

 prices prevailing on the open warehouse markets and to the insidious 

 and effective attacks of the opponents of cooperative tobacco market- 

 ing. The low initial advances at first, and later the delay in making 

 further advances and final settlements, served to aggravate a situa- 

 tion which was already distressing, partly because of the heavy 

 indebtedness resulting from the unsatisf actory prices of tobacco in 

 1920 and 1921, and partly because of the higher standard of living 

 acquired during the war years. It has been maintained by many 

 that the faith and loyalty of the members were destroyed by the 

 many evidences of mismanagement and because of alleged unwise 

 or dishonest policies of the officials and directors. However, many 

 members failed to deliver the first year before they could have 

 been aware of any policies which might have alienated their support 

 and cooperation. 



Economic and educational conditions tend to mitigate the blame 

 of the disloyal member for his contribution to the failure of the 

 association. But many members are open to censure for their fail- 

 ure to support their organization. Unscrupulous members violated 

 their contracts, not through necessity, but through the desire for 

 financial gain. Instead of attempting to remedy mistakes, they 

 often became opponents of their own interests. These members 

 failed to see that future reward could be gained only through some 

 present sacrifice, or they were unwilling to make that sacrifice. To 

 them, and to the nonmembers who fought against the association or 

 profited by its existence, it can only be said that they must appar- 

 ently remain content with the prices and method of sales of the 

 auction-floor sales system. 



Many and lasting were the mistakes in the policies and practices 

 followed during the membership campaign and organization period. 

 The members were allowed, if not led, to believe that an association 

 would have virtually monopoly control of the tri-State tobacco sit- 

 uation. Extravagant promises and promises not possible of fulfill- 

 ment were made. In many cases the interests not in favor of the 

 cooperative marketing of tobacco were unnecessarily antagonized. 

 The methods of obtaining members and of estimating deliveries, 

 and the failure to select only members who could live up to their 

 contracts were sure to result in lower deliveries than anticipated. 

 Contracts not revocable resulted not only in nondelivery but in open 

 antagonism of those who wished to be legally released from their 

 contracts. The association covered the tobacco-producing areas of 

 three States and handled five more or less distinct types of tobacco. 

 The conditions of the growers are very diverse in the different terri- 

 tories of these three States. The association was large, it seemed 

 too far away, and too indirect in its relations to its constituting 

 members. 



The management of the association made many mistakes, some of 

 which were irreparable. These mistakes were due chiefly to the 

 inexperience of the directors and officials, who were unaccustomed to 



