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



ASSOCIATION WEL TBY TO STANDARDIZE METHODS 



(c) The association shall make rules and regulations and shall provide in- 

 spectors or graders to standardize and grade the quality and the method and 

 manner of handling, curing, and shipping such tobacco; and the grower 

 agrees to observe and perform any such rules and regulations and to adopt 

 the grading established by the State and Federal authorities and the asso- 

 ciation. 



ALL TOBACCO WILL BE POOLED FOB EACH YEAE BY TYPE AND GEADE 



5. The association shall pool or mingle the tobacco of the grower with 

 tobacco of a like type, grade, and quality delivered in the same crop year by 

 other growers. The association shall classify the tobacco and its classification 

 shall be conclusive. 



The tobacco delivered in any crop year to any point at the order of the 

 association, shall be handled in one major pool ; and the minor pools shall be 

 by type and grade. 



ASSOCIATION WILL EESELL ALL TOBACCO AND PAY NET PBOCEEDS TO GEOWEE COSTS 



OF OPEBATION AND OVEBHEAD WEL BE DEDUCTED, BUT THE ASSOCIATION IS FOB- 

 BIDDEN TO MAKE ANY PBOFIT FOB ITSELF 



6. The association agrees to resell such tobacco, together with tobacco of like, 

 type, grade, and quality delivered by other growers under similar contracts, 

 at the best prices obtainable by it under market conditions, and to pay over 

 the net amount received therefrom (less freight, insurance, and interest), as 

 payment in full to the grower and growers named in contracts similar hereto, 

 according to the tobacco delivered by each of them, after deducting therefrom, 

 within the discretion of the association, the costs of maintaining the associ- 

 ation, and of handling, grading, and marketing such tobacco; and of reserves 

 for credits and other general commercial purposes (said reserves not to exceed 

 1 per cent of the gross resale price). The annual surplus from such deductions 

 roust be prorated among the growers delivering tobacco in that year on the 

 basis of deliveries. 



EVEEY GEOWEE GETS THE SAME AMOUNT FOB THE SAME TYPE, QUALITY, AND 



QUANTITY OF TOBACCO 



7. The grower agrees that the association may hnndle, in its discretion, some 

 of the tobacco in one way and some in another ; may sell some upon delivery ; 

 may cure or process or manufacture all or any portion thereof; but the net 

 proceeds of all tobacco or tobacco products of like type, quality, and grade 

 less charges, costs, and advances, shall be divided ratably among the growers 

 in proportion to their deliveries to each pool, payments to be made from time 

 to time until all the accounts of each pool are settled. 



The association may contract with the owners of redrying plants to redry 

 and store the tobacco delivered by the members of the association. 



THE TOBACCO WILL BE SOLD ANYWHEBE — FOE EXPOBT OB OTHEEWISE, WHEEE IT WILL 



BE MOST PEOFITABLE 



8. The association may sell the said tobacco within or without the United 

 States, directly to manufacturers or exporters, or otherwise at such time and 

 in such form upon such conditions and terms as it may deem profitable, fair, 

 and advantageous to the growers; and it may sell all or any part of the 

 tobacco with or through any other agency hereafter established, for the coop- 

 erative marketing of the tobacco of growers in other States throughout the 

 United States, under such conditions as will serve the joint interest of the 

 growers and the public; and any proportionate expenses connected therewith 

 shall be deemed marketing costs under paragraph 6. 



THE ASSOCIATION CAN BAISE MONEY TO MAKE FTEST PAYMENT TO GEOWEBS 



9. The grower agrees that the association shall borrow money in its name 

 on the tobacco, through drafts, acceptances, notes, or otherwise, or on any 

 warehouse receipts or bills of lading or upon any accounts for the sale of 



