The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-26
NAVAL STORES AT LOW EBB.
PRICES THE LOWEST N THE HIS
TORY OF THE TRADE.

/ Spirits Selling n Cent Below the
Coat Of Production and ROsin 81 a
Barrel Lower Than Ever KNOWN
The Drop of 1850 Beaten-Matters
10 Come Before the Savannah
Meeting Next Month.
/ The great question among a large num-
Y her OF savannan's business men. al pres
ert. is how much lower the price Of spirits
I turpentlne and rosin Is going. The IN
Z dusrry is at q low ebb. The decrease in
I the value OF the products. Of about 5000
I a week. as compared with last year, and
considerable more as compared with pre-
vious years. has set those interested 70
seriously thinking.
II is estimated that the present cost OF
! the production Of spirits turpentine is, at
the lowest calculation. 3 to p cents a
I gallon. To bring the cost Down 70 this
basis. every minute detail in the business
has been carefully looked after and there
is scarcely any point left where redue-
| ton in the expense can be made
! The factors are the most discouraged
set Of men that ever did business on Bay
street.
Spirits turpentine sold yesterday for 22ls
cents a gallon, the lowest price ever
reached in the history Of the trade, and
rosin sold on an average at about Sl.O9
barrel lower than ever before.
Much has been said and much has been
published about the gradual depreciation
of values during the past five years, ou'
the cause Of the decline has not been
remedied. 1t appears to be eel'tered upon
the producers. Up to 1850 the price OF spir-
its turpentine ranged between 40 cents and
80 cents and there was no serious dAspres-
sion until May Of that year. a large kuin
dealing in petroleum products and nav al
stores at Wilmington, \. C., had pa
chased a large portion OF the crop, vita
the intention OF cornering the market
Another large corporation, competitor,
caught the holders mapping with a large
stock on hand and local taxation staring
them in the face, which was 10 have been
paid on stock on the first Of June. The
company 10 avoid the tax chartered q
number OF steamers and shipped its stock
to New York. The opposition put in its
work, however, and depressed the value
from IS cents TO % cents. Ii was serious
blow to the manipulators and caused al
most panic in the trade.
After that time large number Of prom
inent operators in North Carolina came
TO Georgia, where virgin trees We're plen-
uful They were all successful in busl-
ness, and thousands OF dollars were IN
vested IN the industry. Every operator
concluded that ne would get rich in a few
years and retire, and with that deter
minatlOn worked the business for all IL
was worth. The result was an overpro-
ddctiOn. When the trade began TO realize
unat SPECTATORS, or middle men, as they
chose TO term them, We're working the
market to further their interests, the pro-
ducers ana factors began to hold confer
ences, and decided that the only remedy
FOR the evil was to curtail the production
They agreed to cut fewer boxes, and
out to be the old story, and every one
thought ne would let his neighbor cease
cutting boxes, while he fell to work, en-
0eaVOrlng TO get in the largest crop he
had ever attempted to produce. The re-
suit was that from year to year the pro-
ductiOn has increased until at present, II
IS larger than ever.
The combine of the factors and opera
tors, a few seasons ago, did not prove al
yantageous, as there were some among
them who did not see fit to hold to their
obligations.
Now that bankruptcy il staring the
operators in the face, they are thinking
seriously of forming another association
10 regulate the production of next sea-
sons crop. They propose to cut only
one-third of the amount of boxes that
We're cut last year, and ask The factors TO
cooperate with them.
A circular letter dated at Moultrie July
p has been sent to the Savannah factors.
II is as follows:
I'VE the turpentine operators Of Colquitt
and adjoining counties Rave organized
an association, and have agreed and
bound each individual operator not TO cut
more than One-third the boxes that was
cut last year. We see that We cannot do
anything alone, and want you TO coop
crate with US.
I'VE want to know if you factors will re-
quest your best customers 10 organize
such associations, and after they are Or
gained we Will want you to cOlubine with
us We would want every operator to OBJ
iigate himself to cut not more than one
third of what ne did the past sea.Son. We
| would want him to give bond anG securi-
| ty to carry out in good faith this Obliga-
ton
I'VE would want the factors to bind
| themselves in a bond not to advance to
any operator who would not indorse the
general plan outlined by the convex tion,
and also not to advance under any cCmsid-
Grafton to cut beyond one-third of what
was cut last year.
If operators generally and all factors
would come together and cooperate with
each other in the plan outlined above we
have no doubt but what we should secure
living prices for pale rosin and spirits of
turpentine next season. Kindly let US
know if you viii fully cooperate with us
We want TO have a general meeting in
Savannah, Aug. 26, 1896. Would like that
you would insist on each one of your Gus
toners going TO Savannah on thaE day
and have a permanent ARRANGEMENT with
operators and factors"
The circular is signed, H. Elliott, chair
man and A. c. Darling secretary.
large number of factors have express
ed their APPROVAL of the scheme and are
willing to cooperate with the producers
in reducing the yield of naval stores.
1t remains however, with operators
themselves. If they choose to do less
work for larger profit on the year, they
| have the means of accomplishing it, but
If they continue in the same course they
have pursued for the past ten years, they
Will remain in the same condition that
they are at present.
IN THE RAII,RO4O WoRrD