8 



The degree of difference between a local and a central becomes less 

 apparent when the local operates more than one warehouse. One local 

 operates three warehouse facilities, and three others each operate 

 two auction warehouses. One central has 16 auction warehouses dis- 

 persed in 3 local markets, a second operates 8 warehouses located in 

 6 markets, while the third operates 4 warehouses located in 3 markets. 

 Because the differences are relatively minor, a distinction will usually 

 not be made between locals and centrals in this report. 



The elements comprising the organizational structure are the same for 

 all associations, namely, members, a board of directors, manager, and 

 employees . 



Membership 



This part of the report discusses trends in membership size of tobacco 

 auction warehouse associations, means by which the tobacco grower 

 became an association member, methods of maintaining and expanding 

 membership, and exercise of membership control. 



Number of Members 



During the first year of operation, membership size of the associations 

 ranged from about 100 for the smallest to well over 20,000 members 

 for the largest. Nine associations, of those replying, had an initial 

 membership of less than 1,000 each, while 2 associations started with 

 more than 5,000 members apiece (table 2) . 



Cooperatives beginning with the smallest number of members were usually 

 those attempting to establish initial grower-owned facilities in local 

 tobacco markets. Larger associations, on the other hand, followed 

 earlier cooperative organizations that had gone out of business. 



By 1955, all auction warehouse associations had been organized. In 

 that year, 10 of 13 associations providing information reported 

 that they each had more than 1,000 members. In 1962, ail 15 associ- 

 ations reported at least this number of members, with 10 reporting more 

 than 2,000 members each. 



The. total number of memberships of auction warehouse cooperatives averaged 

 nearly 52,000 during the 10-year period, 1953-62. An average of some 

 33,000, or almost 64 percent, of the members sold their tobacco through 

 cooperative warehouses each year during this period. The latter figure 

 suggests that while the associations were concerned with growth in 

 membership, emphasis was also placed on retaining or encouraging con- 

 tinued patronage. 



Table 3 presents information on total number of members and member-patrons 

 during 1953-62. 



According to these data, cooperative auction warehouses have been quite 

 successful in maintaining and, in some cases, expanding membership during 

 recent years. 



