R8 AMERICAN TOBACCO CO. AND IMPERIAL TOBACCO CO. 
Eighteen concerns are listed in the above table and in which 
at least 27 high-salaried officials or emplovees of the association were 
financially interested. 
Attention is also directed to that part of the report of the special 
committee which states that T. C. Watkins, a member of the be 
of directors, and director of warehouses, with other officials invested 
in redrying plants in 1923 in order to prevent private redriers from 
sit the price above the 1922 price of $1.75 per hundred pounds, 
and thus saved the association several hundred thousand dollars. 
This excuse for the officials being engaged in redrying was also 
made to the commission by officials of the association. Rs a public 
hearing before the commission on June 25, 1925, it was stated by 
| for the association that its officers engaged in the redrying 
business in 1923, the second year of the organization, to meet an 
emergency and that through this action the association “had been 
saved in 1923, 25 cents per hundred pounds on tobacco redried, 
and had been saved in 1924, 50 cents per hundred pounds on this 
tobacco redried, which will amount to $600,000. * *° * They kept 
the price of redrying for the whole association down to $1.75. on 
1924 it was reduced to $1.50.” In an attempt to show the existence 
of an emergency, it was also stated at this hearing that: 
In the summer of 1923—and most of this redrying was done in 1923 and 
1924—the association attempted to make with independent redriers a contract 
for their 1923 crop. For the 1922 crop they had had a uniform standard con- 
tract of $1.75. They attempted to make that in 1923 and they could not do it. 
They got letters from two big redriers. One said “We will redry for $2.25,” 
and the other said ‘‘ We will redry for $2.” They were getting together to squeeze 
the price up. 
The letters referred to are as follows: 
Jorn E. Huaeues Co, 
Danville, Va., May 10, 1923. 
Tosacco GrRowERS COOPERATIVE ASSOCIATION, 
Richmond, Va. 
(Attention) Mr. R. R. Patterson. 
GenTLEMEN: Referring to the conversation had with Mr. Lewis yesterday 
afternoon regarding the renewal of our redrying contract with you the coming 
season, will say that while we will be glad to handle your tobacco for you; owing 
to the increase in price of coal, hogshead material, and labor we would expect 
to get more money for doing this work. We would prefer waiting a few weeks 
before making you a price, as we have not as yet contracted for our supplies 
and we do not know how much advance we will have to pay for them. 
Should your Mr. Patterson be in Danville in the near future we will be glad to 
see him and talk this matter over with him. 
Thanking you for calling our attention to same we are, with best wishes, 
Yours very truly, 
Joan E. Hugres Co., 
(Signed) W. D. Powewry, Vice President. 
Jorn E. Huares Co., 
Danville, Va., June 14, 1928. 
ToBacco GROWERS COOPERATIVE ASSOCIATION, 
Richmond, Va. 
(Attention) Mr. R. R. Patterson. 
GentLEMEN: Confirming conversation with your Mr. Patterson yesterday, 
relative to redrying tobacco for the association next season, beg to advise that 
we will contract for this work at the same price that you pay the Southern States 
Tobacco Co., Dibrell Bros., ete. If they will do this work at $1.75 we will do the 
same, and as stated, if you pay the other companies higher than this price we 
would expect to be given the same contract.