Savannah morning news. [volume] (Savannah) 1868-1887, 1886-10-22
THENAVAl ST0RESTRADE
SECRET CIRCULAR SENT OUT TO
MANUE a CTUKEES.

The PresaDt Svstem of Handling Naval
Stores Through EActora and Commits
sion Merrhaats AUtSCked-Soheme for
Prnducers Cooperative Associa-
liou-A VI Getting to be Held at Way
cross Next Week.
A paper beaded "a Confidential Circu-
lar to the Naval Stores Manufacturers OF
Georgia" was posted In the Board OF
Trade yesterday, and caused considera-
bic talk among the naval stores men. IL
started out with the not unfamiliar quo
tation about the fortune which tide, II
taken at the flood, leads to. Ihen,
after half q page OF type-writLeh
philosophical comment, the writer
boldly attacks the present system OF
handling naval stores through the factors
and commission merchants, and proposes
the adoption BY the manufacturers of a
cooperative plan.
Savannah and Brunswick now receive
about half OF the naval stores consumed
by the world or about 1000 600 barrels.
Ten years 40, according TO the circular,
Savannah did not handle more than 1900
barrels OF turpentiue and rosin and Bruins
wick did rot handle single bar
rel. Within a decade, there
fore, the industry in Georgia has
developed imme nicely. The circular
goes on to state that great pine forests are
being destroyed and the owners are de-
irving no benefit. Turpentine and rosin
have beer over produced during the last
i've or SIX years and the markets are
glLtted. Low prices have ruled and many
manufacturers have been forced TO give
UP the business. Meanwhile the only
ones who veprospered, say the writer,
are the factors, commission merchants,
brokers anG buyers in the leading ports,
and especially in Savannah. All OF these
are accused Of having made money,
sand plenty of it," during the
severest depression. These dltieront
nrms are further charged with sending
fout false quotations, sacrificing snip
'nents and playing divers tricks on the
manufacturers De which production was
rot deorea sed and the market prices were
Kept down. AS an escape from these and
ainer evils of the present system the CO.
operative plan is suggested, (which Will
afford a relief from the eXactiOn and the
ext0rtions OF middle men, an oppression
long felt by every manufactures of naval
stores in the state OF Georgia"
The circular has been circulated Sc
oretly among the leading manufacturers
of the State for two weeks past. 1ester-
day copy was sent TO the Board Of
Trade, which was the first information
that body had of it. A manufacturer,
who is working in the interest OF the pro-
posed association, stated last night that
enough manufacturers have already
promised the movement their support TO
make it success. The association Will
be mutual and will have for its object the
saving of money to its members
1u the transaction Of their
business. Each member viii
be required to subscribe to the capital
stock OF the ASSOCIATION an amount equal
to that which he will need 30 run MS
business. All money needed by the MEM
bers can be drawn from the association
and all necessary goods ana supplies can
be purchased through il. Purchasers
will be given the benefit OF cash prices.
The manufacturer estimated that the
factors make about per cent. on the
gross value of the naval stores they sell
and about per cent. on all goods sold to
customers.
"On sales amounting to 81 100000 the
factors made $4,000" said the manu-
facturer. "Now, by the scheme which
we propose, the COST need not exceed
$4,000, or less than l per cent The pro-
Queer will therefore save ; per cent. by
selling through the association. Quoting
the circular | would say that there is too
much reason to suspect that many nav al
stores manufacturers have been cheated
and swindled by their factors in more
respects than 0ne.' There are men here
in Savannah who a dozen years ago had
not over $4,000 or 900 cash capital
and whose checks are now good for q
quarter OF a million"
The gentleman said that convention
will be held at Waycross Oct. u to dis.
,cuss plans and form an association. The
deliberations OF the body Will be secret
Several factors who were discussing the
circular poOh-pOohed it, and predicted
that the association will be failure.