Looseleaf auctions then assumed a more active role. Some grower 

 associations in Kentucky, Tennessee, Maryland, Virginia, and North 

 Carolina organized on a pool basis turned to the looseleaf auction 

 as the best means of receiving satisfactory prices. 



During World War I and immediately thereafter, improved tobacco prices 

 encouraged increased production. The average price received by farmers 

 increased from 14.8 cents a pound in 1914 to 31.2 cents a pound in 

 1919. However, in 1920 prices declined drastically and farmers 

 received only an average price of 17.2 cents. 



Such conditions led to the formation of several large tobacco marketing 

 cooperatives during the years 1920-23. Most adopted pooling methods 

 in an attempt to receive reasonable prices for their members' crops. 

 This revived interest in pools continued until about 1925, and then 

 faded due to the inability of the associations to sustain interest 

 among grower -members in this method of marketing. Some of these 

 cooperatives established looseleaf auction sale facilities when the 

 volume of tobacco obtained by pooling methods began to wane. 



This transition is typified by the Burley Tobacco Growers Cooperative 

 Association, Lexington, Ky. Organized in 1920 following the dis- 

 astrous decline in tobacco prices, this association was comprised of 

 six district warehousing companies which operated sale, redrying, and 

 storage facilities in various areas of the burley tobacco belt. Most 

 of the burley crop in 1921 through 1924 and nearly half of the 1925 

 crop was handled by the association on a pool basis, but the entire 

 1926 crop was sold at auction. 



Since the first contracts between growers and the burley cooperative 

 ended with the 1926 crop, and because less than 75 percent of the 

 growers accepted the new contract which was to begin with the 1927 

 crop, the Burley Tobacco Growers Cooperative Association became 

 inactive. 



Two of the district warehousing corporations survived, however, and 

 are among the largest and most successful of cooperatives operating 

 looseleaf auction warehouse facilities at the present time. 



After World War II, renewed interest in the auction selling of tobacco 

 through cooperatives developed. With the exception of one organized 

 in 1928 and another in 1932, all existing associations were organized 

 from 1945 through 1955 as shown in the accompanying tabulation. 



