AMERICAN TOBACCO CO. AND IMPERIAL TOBACCO CO. 101 
-he limitation of business to tobacco of this association; and that all these profits 
resulted in definite benefits to this association and that the contract terms were 
at least as favorable to the association as any current contract prices; and, 
further 
6. That the managers have constantly made efforts to carry out the poliey 
to sell tobacco in green condition, except where such sales were discouraged by 
the board, and have constantly reported the details of such efforts to the execu- 
tive committee; and 
7. That the redrying operations of this association, as handled through the 
copartnership in which the said managers were interested, were, as to the 1923 
and 1924 crops, conducted with the knowledge and approval of the executive 
committee, and as to all crops to the satisfaction, benefit, and advantage of this 
association; 
Now, therefore, this board. of directors announces its knowledge and approval 
of the said transactions, as known to and approved by the executive committee, 
ander the due sutherity; and that this board of directors states that the activ- 
ities of said managers in connection with redrving tobacco have been con- 
ducted properly and with advantage to this association, at prices lower than or 
never greater than the prices for redrving current at the time of the coutracts 
with the said managers. 
This resolution was discussed at length and in detail by sentence and by 
paragraph. After full discussion and consideration, the resolution was adopted. 
All the directors present voted for the resolution except Director Lassiter, who 
requested that he be recorded as present but not voting. Mr. Lassiter gave as 
his reason for not voting that he was not present at the time the executive com- 
mittee authorized the investment of directors, officers, and employees in redry- 
ing plants, and therefore he could not vote for this resolution. Director Tyer 
stated that he was not a member of the board at the time the resolution was 
passed by the executive committee but that he wanted to be recorded as being 
present and voting for the above resolution. Director Wood stated that he was 
not a member of the board at the time the executive committee passed the 
resolution but that he wanted to be recorded as being present and voting for the 
above resolution. Director Rogers stated that he was not a member of the board 
at the time the committee passed resolution, but that he wanted to be recorded 
as being present and voting for the above resolution. 
No evidence was submitted to indicate that the membership has 
approved the action of the executive committee in 1923 and as 
approved by the board of directors in August, 1925. 
The tobacco cooperative marketing associations have been incor- 
porated for the CL of engaging in all activities connected with 
the marketing of tobacco and with authority to finance any opera- 
tions in connection therewith. The Burley and Dark Associations 
purchased redrying plants and redried their own tobacco with the 
exception that during the first year of operation they contracted 
with private redriers in localities where they had not as yet obtained 
redrying facilities. On the other band, the Tri-State association, 
prior to 1925, had all of its tobacco redried by private con- 
cerns. The average cost to this association of redrying tobacco 1n 
1922 was $1.80 per hundred pounds, in 1923, $1.74 per hundred 
pounds, and, in 1924, $1.79 per hundred pounds, or an average for 
the three years of about $1.75. The Burley association redried in 
its own plants during the three years about the same quantity of 
tobacco at an average cost of $0.71 1 hundred pounds. It 1s 
evident that the policy adopted by the Tri-State association resulted 
in & loss to the association. Lven at the average cost of the Edmond- 
son Tobacco Co. for the years 1922 and 1923, viz, $1.05, the saving 
to the association in redrying 219,866,812 pounds, the total quantity 
of association tobacco redried by private redrying concerns in 1922, 
1923, and 1924, would have represented about $1,500,000. 
The important data with a to the redrying operations of 
the Tri-State association, including a comparison of net financial