Savannah morning news. [volume] (Savannah) 1868-1887, 1886-10-28
THENAVALST0RES TRADE
PRODUCERS DISCUSS THE PRO
POSED COOPERATIVE PLAN.


In accordance with call made through
confidential circular to the naval stores
manufacturers of Georgia, mentioned in
the NEWS a day or two ago, a meeting of
manufacturers was held ct Way yes
terday. Quite a number OF leading pro-
ducers were present, and between $780,
300 and $500, 600 capital was represented.
The meeting was held at the Grand
Central Hotel. A. p. Brantley, of Black
shear, was elected chairman, and j. NJ.
Purdom, Of Glenmore, secretary. At the
request OF the chairman Mr.. c. b. Towns
end stated the object OF the meeting. He
said in substance that St was to discuss
what action should be taken by
the operators to remedy GER
tain grievances and evils which
have sprung up in the naval stores bust
ness. All present, he SAID, are practical
manufacturers and operators, and know
Iull well the present condition OF the
business, and how impracticable it is to
carry on The business in the future as it
has been carried on in the past. The
business has grown to SUCH magnitude
that it is second only to cotton in impor-
kance.
BUSINESS OUGHT TO PROSPER.
1t is a business which should pros per-
aud out of which the operators should
make money, but inst cad OF this it is Ian
gushing, ana manufacturers are growing
poorer aud poorer every year. over pro-
ducuon. he said, is in the main the cause
of all this trouble, and the factors and
commission men are responsible for it.
There IS now enough TOsin and spirits to
supply the demand for year, ana yet the
factors are urging and pers uadtng the
manufacturers to enlarge their operations
and are preparing TO make heavier ad-
vances for the coming season than ever
before.
This. he went on to say, is explained by
the fact that the profits of the actors are
hy no means confined 10 their commits
slons for handling the goods. The factor
makes money upon the amount Of stun be
handles, and not upon the price at which
1T sells. lie makes a large profit every
year out of insurance. Suppose That he
handles 81, 1000, 900 worth OF naval stores in
ayear.
THE FACTORS PROFITS.
The manufacturers are charged !. of
per cent. for insurance which, ON 81 ,OU0.-
900, amounts TO $4,000, and the factor
carries a floating policy fer the year, winch
does not cost him over $500. The differ
ence is clear gain, pocketed by the tao
tor. On supplies furnished the manutac-
turer the factor make an average profit of
y
worth of supplies in "a year, he ls ju.t
$4,000 ahead.
Not many wears ago the factor made a
clear profit Of 100 per cent. out Ofstorage.
The railroads charged the factors &c. a
barrel for storing rosin and Sc. for spirits,
allowing rebate OF &c. on the former and
&c. on the latter. the factor pOckeJed
the bate, and billed the manufacturer
with the tull rates OF &c. and Sc, This
practice has now been stopped, nut it is
not more than three years since It formed
20 small part of the factors profits.
VIEWS OF SOME PRODUCERS.
Mr.. Purdom said that in the matter OF
IreIghts some manufacturers had de-
manded and received rebates. For in
stance, on barrels OF rosin weighing $50
pounds, manufacturers Weresbilled with
45c. per barrel, when the factor paid but
35c.
Mr.. Brantley, in speaking of Insurance,
freights, supplies, etc. said that the tao
tors had no right to charge more than
they PAID tor these things. In business
of any magnitude he profits derived from
these sources MUST he enormous. The
result is that the factors have the money
and the manufacturers the experience.
He thought that the grievances of the pro-
ducers should be publicly agitated, and
some action should be taken by which
they can be remadied, if not redressed.
Expressions OF opinion were gwen by
all, and the universal feeling was thar
here were grievances that should be
remedied and evils in the business that
should be corrected, and that prompt and
decisive action should be taken with this
sud in view. Some discussion was had
as to how they should proceed, and what
steps should be taken by the manufacture
ers IN order to bring ABOUT this result.
THE PROPOSED ORGANIZATION.
The formation OF mutual and protect
ave association was discussed at length,
land met with unanimous approval. No
definite steps were taken toward an Or
ganiZati0n, but the most feasible plans
and methods OF organizing. IN case 1t be-
came necessary, were talked over. The
suggestion OF Mr.. Brantey on this line
that a president, vice president, secre-
tary and board OF ten directors be elected,
and that they be empowered to establish
Offices IN Savannah and Brunswick and
select a manager and clerical force
Tor carrying on the business,
met with favor. In SUP.
port of this plan il was argued that the
manufacturers could have their goods
handled through these two offices by pay
ing only the actual expenses incurred,
and a small per cent. in addition, which
it would be necessary to charge Ia order
10 pay Office expenses. They could also
get supplies through these Offices at the
actual cost, and would be sure OF fair and
gust freight, storage and insurance rates.
THE PLAN PROPOSED.
It was estimated that the amount OF
capital necessary 70 commence business
would be small, only enough TO pay the
running expenses OF the Offices. II pro-
ducer wishes TO borrow money he can do so
by giving the same collateral
10 the association that be
would have to give the factor,
and with this collateral the manager OF
the Office can obtain the money from the
banks upon the same terms AS the fac
tors. BY dealing with the association
the purchaser, il IS claimed, Will save the
heavy commission paid 10 the factor, as
well as the numerous outside profits
which be makes.
A committee Of five. consis ing OF u. c.
Newton of 40. ! Central railroad, A. =.
BranLley OF Backshear, j. NJ. Prudom OF
GlenmOre, Hon. Il. Johnson Of Graham,
and w. Z. Burbaee OF Brunswick, was
appointed to visit Savannah and confer
with the factors and see If some way Of
adjusting the complaints OF the producers
cannot be agreed upon.
PREPARING TO ORGANIZE.
The committee was also instructed to
consider the ways and means Tor the or
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