AMERICAN TOBACCO CO. AND IMPERIAL TOBACCO CO. a9
RemsviLe Tosaceo, Co,
Reidswille. N. C.. Avril 29, 1925.
FEDERAL TRADE COMMISSION, }
Washington, D. C.
GenTLEMEN: Replying to yours of the 18th inst., we beg to give you the
following information:
We began operation on July 1, 1924, under the name of Reidsville Tobaceo
Co., a partnership, and consists of the following: J. H. Burton & Co., 8. M.
Glenn, O. C. Cawley, and C. L. Smith. We have received during the year from
the Tobacco Growers’ Cooperative Association, 1,302,274 green pounds to be
redried and have shipped them 1,156,639 redried pounds, for which we received
$1.75 per hundred pounds redried weights.
* * * &
Yours very truly,
Rumpsviuue Tobacco Co,
0. C. CAWLEY.
GowupsBoro, N. C., May 22, 1925.
FEpErRAL TrapE COMMISSION,
Washington, D. C.
Dear Sirs: Wish to state that H. R. Rogers & Co. was a parteership firm
somposed of A. V. Bobitt, C. L. Smith, and H. R. Rogers. .
Relative to amount invested by each; wish to state that we negotiated a $5,000
.0an from Bank of Newbern,
Relative to green leaf tobacco received and redried—773,071 pounds. Wish
to state this was for the season of 1924. We handled no tobacco for the asso-
ciation 1922 and 1923 crops. }
Redried pounds made for Tobacco Growers’ Cooperative Association, 609.261
pounds.
Yours very truly,
H. R. Rocers & Co,
By A. Cox.
The companies referred to in the letters noted above represent
some of the redrying concerns set up in 1924 by association officials
for the purpose of handling the cooperative’s tobacco. It appears
that at feast 55 per cent of all the tobacco sent to redriers in 1924
was handled in plants in which association officials were financially
interested.
It has already been shown that many of the concerns in which officials
were financially interested redried tobacco for the association in 1922.
There is no evidence in the files of the association that such #cts were
approved by the membership or by the board of directors or the execu-
tive committee. Kirst mention of the subject is noted in the minutes
of the executive committee dated June 9, 1923, in the following:
Mr. Williams and Mr. Patterson discussed the redrying and storage problems
of the association.
The minutes do not show that a resolution authorizing association
sfficials to engage in the redrying business was adopted, although the
various members of the executive committee agree that the policy
was approved by the committee and that the charges would not
exceed $1.75 per hundred pounds. The following members wers
Jr G. A. Norwood, Oliver J. Sands, Joseph M. Hurt, J. A.
rown, N. H. Williarns, 3. F. Austin; also Messrs. Watkins; Craig,
Patterson, and Breedlove. Brown and Hurt voted against appprov-
ihg the policy It is probable, therefore, that the majority of the
hoard of directors were at least aware of the connection of certain
officials with redtying concerns when the 1924 crop was handled.
Suit was ited by J. A. Wade in the United States district court
77637—8. Doc. 34, 69-1——8
