24 



Table 9. --Acquisition of capital improvements by tobacco auction ware- 

 house cooperatives in Kentucky, North Carolina Tennessee, 

 and Virginia 



Reasons additional indebtedness incurred 



Associations 

 reporting 



1. For storage warehouse 



2. To increase warehouse floor space 



3. To repair warehouse 



4. To buy land for future expansion 



5. To buy equipment for diversifying 

 operations 



Combination of 1 and 2 

 Combination of 1 and 5 

 Combination of 2 and 4 



Total 



Number 



1 



2 



2 



1 



1 



_1_ 



8 



Table 10 shows that banks for cooperatives were the most important source 

 of funds for capital improvements while associations' savings played the 

 most prominent role in retirement of the indebtedness. 



Table 10. --Source of funds for capital improvements and for retirement 

 of debt on improvements, tobacco auction warehouse coop- 

 eratives 



Capital improvements 





Debt retirement 



Source of funds 



Associations 

 reporting 



Source of funds 



Associations 

 reporting 



Number 







Number 



1. Bank for cooperatives 4 



1. 



Association's 





2. Other bank 





savings 



3 



3. Association's savings 



2. 



Sale of stock 





4. Sale of stock 



3. 



Sale of asset 





5. Depreciation reserve 





Combination of 





Combination of 1 & 3 1 





1 & 2 



1 



Combination of 1 & 4 2 





Combination of 





Combination of 1, 2, 





2 & 3 



1 



4, & 5 _1_ 









Total 8 







5 



