The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1922-10-06
NOTE BOOK SKETCHES
continued From Page n

cent OF the acreage OF 1920 is signed
up to that date The contract pro-
vides, however, that its terms shall not
be binding for the 1922 crop unless by
| June 80, 1922, rs per cent on the basis
| of the 1920 acreage had been covered
/ by the contract. This time limit by
mutual agreement has been interpret
| ed so as to make contracts signed on a
later date operative as from the date
fixed in the original contract. That
the contracts signed are operative and
| in force is evident from the warning
sent out some time ago by the president
of the association to the growers not to
sell any tobacco under contract on the
strength of the injunction clause in the
| contract.
| The pool, according to the wording
of the contract, buys" the growers
| tobacco; it is Purchase and Sale con-
tract. That gives the association dur
| ing the life of the contract, and until
| it terminates according to the provis-
| ions in the contract itself, exclusive
right to the acreage signed up, as much
right as any individual buyer has to a
crop of tobacco after the purchase and
sale contract has the signatures of the
parties involved Furthermore the pool
agrees to buy all tobacco raised by the
grower who has signed to sell. There
is no option on either side as to that
while the contract is in force. Beyond
that the association binds itself not to
purchase tobacco in the open market.
In other words, tobacco raised by grow
ers not in the pool can not be acquired
by the pool; neither can grower who
has signed the contract sell his own
crop in the open market and buy crop
from grower not in the pool and de-
liver that to the pool in lieu of his own.
On the other hand, a grower in the pool
can rent parcel Of land and hire some
one not in the pool to grow tobacco for
him and deliver it to the pool.
In the matter of the price to be paid
the growers by the association, the con-
tract has an important provision. This
provision covers wide series of opera
lions in the receiving, grading, assort-
ing, sweating, packing, sampling, re-
grading and merchandising of the en-
tire amount of tobacco produced by
the members of the pool. The real re-
49, hn
until the entire crop of any certain
year has been sold to the manufactur-
ers, jobbers or other packers, as the
| case may be- And the amount returned
to the grower will be the average
price, based on type and quality repre-
sented in each crop, for all the tobacco
ina years crop controlled by the ASSOC
citation. 1t is provided that up to one
cent per gross pound of the entire
years pool output is deducted for over
head expenses at the discretion of the
board of directors. The contract does
not state whether the amount to be de-
Quoted is to be based on the weight of
the tobacco when received or when it
is resold
However, Sin the discretion of the
board Of directors" an advance may be
made on the crop to the grower at the
time of delivery, the balance not until
''the tobacco of the years crop, which
is of the same type and quality, is en-
tirely resold. =
The contract also lodges power in the
board of directors of the association
Sin the DISCRETION of the board' to re-
tain up to one-half cent per pound Of
tobacco of any given year, or for all
years successfully. to retire loans,
etc., as provided in the third last par
agraph. The money thus derived, how
ever, to be in the form of loan bear
ing legal interest to the credit of the
growers.
The last paragraph in the contract
provides until June l, 1928, for the ac-
curate test of whether Is per cent of
the acreage of 1920 is covered by pool
contracts. Withdrawals can not be
made by either party until then, and
the contract becomes binding until June
l, 1927. The contract does not say that
after this date, thoughk75 per cent of
the 1920 acreage is not in the pool, the
pool arrangement shall not be in force
and binding upon all who have failed to
withdraw in the manner provided in
the contract. The contract is fairly
water tight and places full power and
responsibility upon the board of direct
ors and whomsoever they delegate as
managers and executives to carry on
the business of the big. corporation.