The age-herald., 1899-09-16
TO SYSTEMATIZE
 SALE OF COTTON
The Warehouse Scheme Revived
 by Eastern Capitalists.
SEARLES TALKS OF PROJECT
Round Bale Has Made the Plan Much More Feasible Than When First Attempted Meeting Will be
 Held in Atlanta.


 New York, September 15.-espeeaL)-Tho cotton planters of the south and certain capitalists of the east nave started a con- eer,ed movement by which the product Is to be held in warehouses Throughout the south and not rushed hurriedly off to mai ket as heretofore, choking the ways of trade with disastrous results 10 the plant CTS themselves in the low prices Which came of the markets congestion. The seheme is simple one. The farmers will store their cotton in warehouses which capitalists stand ready to build here and raere throughout the cotton belt. They will get q warehouse certificate CT receipt upon the delivery of the cotton to the warehouse companies, and on this receipt will borrow such mopey es they may require to bridge over the settlement period of the year, and will thus be enabled to await a more fla vora5le turn of the market for the sale of the cotton.
 Tine plan is not new one, but the farm CTS have never before teen in q position to operate it for the reason that it required an immense amount of capital, which they ooa4d not get behind the scheme. The local Warehouse or sub-treasuey plan originated by the Farmers Alliance as a political movement was similar, but was dropped as being impossible of realization It could not be adopted by the government, but it has been found practicable Dy several capi- talists who have signifed their willingness to join wiHa the farmers and systematic the marketing of the cotton crop. The cotton growers of several of the states have already organized for the com pletion of the scheme in those states and there will he a convention of the allied cot ton interests of the south at Atlanta Oc- tober % under the immediate auspices of the State Agricultural Association of Georgia.
 1 John E. Searles, president of the Ameri. can Cotton company, is interested in the movement, as are also several others of like standing in the world of finance. When asked about the scheme yesterday, MT. Searles said:
 There is a great deal in 1t this time. l Heretofore such schemes on the part of the l cotton growers have failed for several good l reasons, and the planter has never yet | found himself in position to command the l price of his product. He has been forced to i sell his cotton as soon as he could get it l Oul ul lue lclu III oiu6I u False lnuHSS lOI 1 his creditors. This necessarily meant a 1 sacrifice oftentimes. The cotton was hurled l into the market all in a great heap within i the three months of the autumn. The mar i ket was choked, prices went down because l the legitimate rule of supply and demand l had been set aside, the railways handled 1 with difficulty the great bulk of traffic | within so short a period insurance was | high, warehouses could not afford the crop everything conspired to the cotton grow CTS disadvantage.
 Changes have come about. New proc | esses of packing the cotton into round bales l smaller in size, and much more easily han | dled than the old-fashioned square bales have done much to make the local ware | house scheme feasible. Insurance the | cotton has been reduced by this round-bale system, and the capacity of the warehouse { eatly increased. Capital is now ready to build these warehouses a places where the cotton production is considerable, and when they are built the planter may bring his cotton there, take a certificate on it's deliv- cry, and negotiate that certificate wherever he pleases for it will be as good as money anywhere. The farmer may borrow 80 per cent. of the value of his cotton at the mar ket price if he sees fit. sell it outright to the warehouse on the spot.
 "SuIl is the scheme that is being ranged to give the farmer better showing in the marketing of his crop. It will, l as- sume, be discussed at the Atlanta conven- ton, which l consider will be one of the most important meetings the cotton grow CTS have held in the south for many a day"
 MT Searles, when asked if he would att tend the convention of the cotton planters, replied that it was quite probable that the American Cotton company or company affiliating with it, would be represented in Atlanta.
 "We are ready to enter into the local
 
 stunned MT. Searles, "and l am firmly con- vinced that it will In time completely revo- lutionize the method of marketing cotton. When the factories need cotton the ware houses will send it forth and the price will undoubtedly thus be raised.
 "I was talking the other day with one of the leading cotton exporters of New Or leans and he told me that when the new scheme gets fairly in working order he would derive great benefit from it, because he would not be forced to send his cotton off to Europe in great quantities and all at one period of the year. He will hereafter only send the product abroad when the de- mand for it becomes keen. The railroads will be benefited by the warehouse system because they will not be taxed beyond their capacity to handle the crop In the rush season. as 1t is called. In fact, everybody who has anything to do with the handling of the cotton crop will find advantages in the local warehouse scheme, chief of all the farmer"
 MT. Searles said that he had investigated the conditions in the south recently with reference to the inauguration of this sys- tenn of marketing the cotton, and found everything in readiness for the plan. 1ns only obstacle in the way that came to my notice" said he, lis that in several states the laws are so shaped as not to give suf- f,cient protection to the warehouse. But I believe all these will be smoobhed down in time by the legislatures of the various states l suppose the Atlanta convention will take up this question"
 There Is great interest in tine new plan of marketing cotton throughout the south and in the cities also where it is marketed. The Baltimore American says of 1t:
 'gThe scheme, which could not have been adopted by the government for various req sons Is not an impracticable one for capi- taqists. Cotton goods and othen products, it is believed, can be handled by the com panies at a profit to them and the pro- ducers To do business of this kind on a large scale an immense amount of money vll he reuuired The concerns are said