The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-06-06
COMPRESS COMPETITION.
A NEW ENTERPRISE IN THIS IMPoR.
TANT LINE ORGANIZED.
Directors and Officers Elected-How the
Company viii Begin Business and
Where the Advantages over the Old
Company viii Come In.

There is going to be bitter conflict
between rival cotton compress companies
in Memphis.
Iniallible signs point in that direction.
y One is organized with a capital of ST.
100000 or more, having property the
value OF which is listed on the assessment
books at SISl, 900 and upward. 1t also
has as membership three-fourths OF the
cotton factors of Memphis, besides fair
sprinlkling OF buyers.
The other company was formally organ
lied yesterday in the Cotton exchange
committee-room. Its membership is
principally from the ranks Of buyers, but
near one-fourth OF the factors are also
either interested or favorably impressed
with the project.
There assembled in the Cotton exchange
rommittee room yesterday afternoon at 4
n o'clock the following gentlemen: Mcssrs.
/. ii. Allen, Richard Allen, Andrew u.
& Gwynne, L. b. Carroll, John T. Fargason,
Benjamin Babb, William w. Bierce, G. +.
Farnesworth, w, r. Jones and William
Frallich, charter members Of the projected
enterprise. There were also half dozen
stockholders. The initial steps toward or
ganization was taken by the the charter
memberselectin board Of directors. The
latter body then took charge OF affairs and
further organized by electing Mr.. An
drew ID. Gwynne president, and Mr.. Will
liam w. Bierce general superintendent.
The capital stock was fixed at $4,000,
nearly all Of which has been subscribed.
An APPEAL reporter met party Of those
concerned after the meeting adjourned.
Mr.. Frolich was pointed out as the one
most likely to prove authoritatively COM
municative.
''What were the motives impelling you
10 undertake this heavy and hazardous en-
terpriseP' inquired the reporter.
II do not view il in the light Of either
an extremely heavy or hazardous enter
prise" responded Mr.. Frollich. 'The
question with us was simply one Of bust
ness demand. Last year was pronounced
one OF short cotton crop, yet the old COM
pany could not handle the business en-
trusted to them with the facility de-
manded. This year the promise is for a
heavy crop, our receipts will largely in
crease over last year, and an enterprise
OF this sort is imperative"
"What assurances have you that the re-
ceipts at Memphis will be in excess OF pre-
yious years2'
"Ample. Since last crop year there
have been two roads opened 10 the city
for business, each Of which will bring us
the products OF new territories Then
more than one firm will abandon New Or
leans in our favor, and they will bring
their custom along. / know OF two firms
which will be in our midst before the
new commercial year opens, viz Allen,
West & Bush and Adler, Goldman & Co.
In addition, others will come from other
points, and all have their friends and sup
porten. II the old company could not
keep M with demands last year, with its
short crop, what could we expect from il
In future years"
when do you expect TO be ready for
COMPRISING opcrations?"
Before the summer Is over II nothing
unfortunate occurs. We will start out
witlrtyQ presses Of the largest and finest
grade, and plenty OF shed room. | think
we can safely rely upon $50, 600 bales Of
cotton. That will pay us7'
II is understood that both the presses
will he located In South Memphis.
Another prominent cotton buyer, who
stood near by, was asked by the reporter
u he was going into the new company.
lie replied:
'No, not at present, anyhow. My rela-
tons with the old company are such that
Il would not be advisable 20 sever them
Just now. But there is going 10 be great
deal Of bitterness and fighting between
the two"
"Ilow can the new company, with It's
limited facilities and capital, hope TO sue.
ccssfully compete with the old2''
"The old company is handicapped for
the contest. There Is some dissatisfaction
over It's failure 10 pay dividend on fully
one-half the sl,OO0,OOO capital invested.
This dead timber IL In storage facilities
from which little revenue is derived, yet
operated adyantageously for the merchants
That was an idea Of the late Col. Mont
gamery, who held IL out n an inducement
90 have Gotten intrusted 10 his company.
The merchants charged 80 cents for stor-
ing cotton, paid the compress company 20
cents, aud thus cleared 20 cents. The
money was made on COMPRISING. II
these storage facilities could only be rented
out for enough 10 pay q per cent interest,
the difficulty would he thus ovecome"
"What stcps will be taken 10 meet the
proposed competition
III have Just learned from supcrintcnd.
ont Montgomery that, beginning Scptem.
Der / next, a reduction will be made
from 10 10 : cents per 100 pounds, or from
80 10 % cents per bale. IL costs about q
cents 10 compress bale. The now con.
-serRr with no dead wood 10 protect, can
hiIord TO compress for 20 cents bale
There ", after all, you see, strong adj
vantage for the new company"
"This is decidedly healthy for Memphis
suppose2'
Certainly. Everything that serves I,
facilitate aud lessen the expense OF hand
a. a. II HaN. Ia
instead Of having 10 wait ten days ate
buying cotton 10 have u compressed aus
shipped, Il can he done In two, that ha
its effect for good.
And the people in the face Of thi
changed condition. say: let the competi
ton proceed, for Il means benefits for tia
eity