AMERICAN TOBACCO CO. AND IMPERIAL TOBACCO CO. 93
The above concern redried practically one-half of the total tobacco
redried by the companies listed in table No. 8. Detailed informa~
tion with respect to the profits made by all of these concerns was
not obtained, but the eagerness with which officials sought to obtain
2 larger volume of association tobacco for their redrying plants
indicates to some extent the profitableness of the business at the $1.75
ar hundred rate. In this connection some of the correspondence
rom the association files, which is set out below, is of interest.
T. E. Hodges, of South Boston, Va., is one of the association’s
high-salaried employees. He owns a half-interest in South Boston
Tobacco Co., the other half being owned by T. F. De Jarnette, of
South Boston, Va., also an employee of the cooperative. According
to information the company furnished the commission, each received
$16,023.45, being one-third of the net profits made by this company
on redrying association tobacco during 1922 and 1923. The follow-
ing clearly indicate that Tucker C. Watkins anticipated that private
profits might be secured through redrying, and brought T. E. Hodges,
a private warehouseman at South Boston, into the association with,
the ‘‘verbal” understanding that Mr. Hodges’s company would be
given some tobacco to redry:
Tosacco Growers’ COOPERATIVE ASSOCIATION,
Chadburn, N. C.. September 24, 1923.
Mr. R. R. PATTERSON,
Richmond, Va.
Dear Sir: I am in receipt of a letter from A. M. Bendall, telling me that we
had received no tobacco for our redrying plant, also that Edmondson’s factory
was full, running both machines. I have tried to give the association the best
service that I was capable of; I turned over one of the best houses, if not the
pest in the three states; the same applies to my force. None of them would not
nave gone with the association if I had not gone. Also I turned over one of the
jest warehouse businesses in Virginia. and I ean not understand whyv it is that
[ can not get fair treatment.
Last season I had to beg and fuss to get any business when my friend in the
same town was run over all the time. Two or three weeks before the market
alosed last season somewhere between two and five hundred thousand pounds
was transferred from our factory to Edmondson Tobacco Co. in the same town.
We said nothing because we thought it would do no good. I don’t care what he
gets if I receive what I consider fair treatment. I notice from our shipping in-
structions that most of the redrying plants in Virginia are receiving South Caro-
lina tobacco. We were told by manufacturers that bought association tobacco
that ours was the nicest ordered and handled of any redrying plant in the three
States. I fully realize the association officials have the right to give the redry-
ing to who they please, also though I would think they would want to treat
averybody fair. If there aré justifiable reasons why we are not getting tobacco,
[ would like to know them.
T. E. Hopges.
Sout Boston, VA., September 25. 1923.
Mr. R. R. ParrERson,
Richmond, Va.
Duar Sir: I failed to state in my letter yesterday in regard to redrying my
verbal bargain with Mr. T. C. Watkins when I signed up with the association
and turned my warehouse over.
Mr. Watkins promised me we would start to receiving tobacco at our plant
just as soon as South Carolina markets opened, and would run the season through.
Of course, that was a big inducement, but after we didn’t receive as much tobacco
in South Carolina as the association expected, and a big percentage was sold,
I said nothing about this, as it was not a written contract and I thought he was
doing the best he could.
As to our contract this last spring, both written and verbal, you know all
sbout. I am writing this to explain to vou why I am sore, and feel that the
