The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1888-09-04
HOW 1T WAS FORMED
The Founder of the Bagging
Trust Tells His Story.
CONGRESS is TAKING A HAND IN IT
And VIII SEQ Where the Responsibility
Lies-The Consumption of Bagging
In the United States

ness before the house committee on manufact-
ures today, in its inquiry into the alleged cot
ton bagging trust.
Mr.. Gratz said he was engaged in the baling
stuff business in St. Louis, member OF the
firm OF Warren, Jones & Gratz. The business
included tho making of cotton ties for binding
cotton. He was also a member Of two corpo-
rations engaged in the same business one loca-
ted in Muncie, Ind, and the other in Cham
paign, Ill.
Cotton hagging he said, was manufactured
out OF the jute stalk. The number of firms in
the country engaged in the business at present
is eight, as against fifteen Mt the same timo
last year. The
ENTIEE PRODUCTION OF COTTON BAGGIEG
in 1887 was about 100000 yards. Warren,
Gratz e. Co., OF ST. Louis, were agents
in that city of the Southern Mills Bagging
company and Standard Mills company Of the
same city. 1t had no interest in these firms
beyond acting az agent.
The variation IN prices Of two pound bag
cling from 1877 TO 1887 has been from l03 cents
per yard in 1877 to III cents in 1880 and n in
1887 The price Of iuto butts has been lower
this August than any August price for the last
ten years. The price OF cotton haggng during
August has varied from II cents 10 l21 cents
per yard,
Witness estimated that the
COTTON CROP or THE YEAR
would require about 100000 yards OF cotton
hagging, and it was expected that the total
output OF all the mills now running up to tho
time when they stop in November next would
10 over J0,000,000 yards
Graft said that the productive capacity OF
cotton bagging mills IN tho west was % per cent
greater than tho mills in the east. The en-
ployes IN the west were mostly Of bohemian
pareutage and were paid slightly moro than
those ~ the east.
The witness said that there were considerable
quantities of cotton baggiug coming TO this
country, but he did not think the foreign mills
would he able 70 bring sufficient cotton bag
ging 30 this country this year to prevent the
sale of that held here. Contractors abroad
HAD THEIR HANDS FULL.
There were twenty-iour jute mills IN In
diana having S,337 looms ON January LIST, 1887,
which could produce ten or fifteen times tho
amount OF cotton baRging needed for the cot
ton crop of the United States.
a number of contracts between the firm of
Warren. Jones Y Graft, rs agents Of other
firms and other cotton bagging firms in the
United States were produced with view to
showing the steps taken by the several cotton
bagginy manufacturing firms to control thor
productions and TO provide for its sale mt stipu-
lated prices. The object of the agreement was
10 enable parties to it 10 obtain control Of tho
cotton bagging produced in this country for
the present season Tho trust has secured
control Of about two-tlirds of the cotton bag
giug III tie country, the remaining third
about 100000 yards--boing produced by por-
sons who arc not in any way connected with
the trust
TERMS or THE AdREEMENT.
The contract shows that the agreement IS
between the firm OF l.. Waterbury y Co. Of
New York city, party Of the first part, and the
Charleston Bagging Manufacturing company,
Novins q Co., of Boston, Mass. tho New
York Begging company, tho Eagle mills, the
southern Mills Bagging, company, the
pany, and tho Empire Bagging company, par
ties Of the second part. The parties OF the
second part agreed 10 sell and deliver 20 l.,
Waterbury q Co. all their bagging thon on
hand and such as might thereafter be acquired
or manufactured by them, respectively, during
remainder of the year of 1883. Tho firm
OF L. Waterbury & Co. acts ms q center OF
correspondence through which tho proposed
increase and reduction in price is brought
about. Its agreed that the profits and loss Of
the parties OF several parts shall be shared in
proportion, The sales and prices of cotton
baggng Is determined by majority Of the
members Of second part.
THE AGREEMENT WENT INTO EFFECT
on the 10th of April last Since then two mills
signing the agreement have failed TO start,
and probably dozen or more outside Of tho
trust closed down previous aud since the agree
mcnt was consummatod, The first set price
OF cotton tagging was made in New York by
the trust about the middle Of July at propo-
sition of tho witness, Nine and half cents
was then fixed as the price.
On January LIST last the productive capacity
Of Warren, Jones X Graft, in conjunction
with The several firms which they represented,
was ;wo-thlrds of all the productive capacity
Of the south but they actually produced seven
Fights of all that Was produced in tho south.
Since tho price was liked in July members OF
the trust had advanced the price ot baggng
three cents per yard The present pIico OF
cotton baEeing ia this country is three cents
higher than that at which foreign manu-
featured production can DO brought here in
elusive of freight charges. This. he said, was
due 10 the fact that the production of material
in this country was confined to q few firms.
Probably sixty per cent Of this years cotton
bagclng product was I'M the hands OF retail
dealers aud the other forty per cent in the
hands of manufacturers. Ii the duty on cotton
baggjug and iute were not changed, the wit
ness was satisfied that the trust would go out
of existence; and If these articles were adj
mttod tree, the firms would doubtless run
corner every other year, Tho needs OF tho
planter were absolute and Imperative and he
must have baggng, 10 matter what the cost
was To him. During tho last three or four
years there was but little cotton bacging in-
ported, the domestic supply being equal TO the
demand.
Charles 4. Pearoo, of 81. Louis, secretary OF
the board of directors of the Standard Mills
Baggug company, one of the concerns cm-
hraoed IN the trust, subscribed generally 20 the
testimony given by GratZ.
The committee adjourned until tomorrow.
What the Farmers Alliance Can Accom-.
pllsh
New Is the time fer the Farmers Alliance
60 ta1c q stand
The producers Of Georgia never had a better
opportunity 10 assert their manhood,
The great question is, shall the men who
make the cotton consult their own interest in
balne IL FOR market or shall they bind the
flecCy staple at The dietaton Of others--or 20
their lntcrcstP
DO the farmers OF Georgia propose 70 be
buliied into buying bapgng at eNtortionate
rates 10 ploasc a graspiug and INSCRIPTIONS
trust, or Will they exercise the glorious priVi.
leges OF haling their own property 20 suit
themSolycs2
Who make the coNon, anyhow, the bagging
trusts or the middle men or the factories
None Of thcm.
The farmers do the work, and surely they
have the right 20 market il Just as they
please.
One thing Is certain. The world is com.
PEELED 90 have cotton The middle men and
factories are obliged 90 handle II or quit that
line al business.
Ii iseQually true that they can't gCt.it unless
they bny lt from ihn iarmors.
Now suppose iiIy iatmvls Of Gcorgia should
unite IN the resolution 90 halo their cott n
with cotton olNth instead Of haggipr. hc,apsu
IL is cheaper. WARt would the Insurance. men
anu fae tai1dlC men and tRC factories go2