102 AMERICAN TOBACCO CO. AND IMPERIAL TOBACCO CO. 
returns to the grower on green sales with redried sales, are shown 
in the last annual audit of this cooperative made by F. W. La Frentz 
& Co., public accountants. These data, recently secured by the 
commission and set forth in the appendix as Exhibit E, show 
that the total cost of redrying the growers’ tobacco, including carry- 
ing charges, to May 31, 1925, was $4,332,598.95 on the 1923 crop 
and $2,843,918.98 on the 1924 crop, a total for the two years of 
$7,176,496.93. It will be noted in this exhibit that the net average 
return £7 pound to the grower was substantially larger on the 
parts of the 1923 and 1924 crops which were sold green than on the 
parts which were marketed in redried order. 
The policy of the Tri-State association with respect to redrying 
has been changed for the crop year 1925. At the present time if 
has under lease and is operating, on a cost basis, ow plants at 
Danville, Va.; South Boston, Va. (2 plants); Darlington, S. C.; 
Rocky Mount, N. C. (2 plants): and Kingstree, S. C. 
APPENDIX 
ExmiBiT A 
Tosacco Growers’ COOPERATIVE ASSOCIATION MARKETING AGREEMENT 
The Tobacco Growers’ Cooperative Association, a nonprofit association, 
hereinafter called the association, first party, and the undersigned grower, second 
party, agree: ; 
1. The grower is a member of the association and is helping to carry out the 
express aims of the association for cooperative marketing, for minimizing specu- 
lation and waste and stabilizing tobacco markets in the interest of the grower 
and the public through this and similar obligations undertaken by other growers. 
2. The association agrees to buy and the grower agrees to sell and deliver to 
the association all of the tobacco produced by or for him or acquired by him as 
landlord or lessor during the years 1922, 1923, 1924, 1925, and 1926. 
3. The grower expressly warrants that he has not heretofore contracted to 
sell, market, or deliver any of his said tobacco to any person, firm, or corporation, 
except as noted at the end of this agreement. Any tobacco covered by such 
existing contracts or crop mortgage shall be excluded from the terms hereof for 
the period and to the extent noted. nw 
4. (a) All tobacco shall be delivered at the earliest reasonable time after 
picking or curing, to the order of the association, at the warehouse or plant 
controlled or specified by the association; or at the nearest warehouse, if the dsso- 
ciation controls or specifies no warehouse or plant in that immediate district; 
or by shipment, as directed, to the association; and by delivery to the association 
of the indorsed warehouse or other receipts or hills of lading, properly directed. 
(b) Any deduction or allowance or loss that the association may make or suffer 
on gccount of inferior grade, quality, or condition at delivery. shall be charged 
against the grower individually. 
(¢) The association shall make rules and regulations and provide inspectors 
or graders to standardize, and grade the quality, and method and manner of 
handling, curing, and shipping such tobacco; and the grower agrees to chserve 
and perform any such rules and regulations and to adopt the grading established 
by the State and Federal authorities and the association. . . 
_5. The association shall pool or mingle the tobacco of the grower with tobacco 
of a like type, grade, and quality delivered in the same crop year by other growers. 
The association shall classify the tobacco and its classification shall be conclusive. 
The tobacco delivered in any crop year to any point at the order of the asso- 
Sapien shall be handled in one major pool. and the minor pools shall be by type 
and grade. : 
6. The association agrees to regell such tobacco, together with tobacco of like 
tvpe, grade, and quality delivered by other growers under similar contracts, at 
the best prices obtainable by it under market conditions, and to pay over the 
net amount received therefrom (less freight, insurance, and interest) as pay-