The people's journal. (Pickens, S.C.) 1891-1903, 1899-03-09


up above the roof and three feet out
from the side walls, SO as tc prevent q
! fire from gaining the door of the ad-
iuning section from the side. One OF
these compartments could be burned
ont entirely and the comp trtmcnts adj
| Joining ON rithr, side would be un-
| harmed. In each end OF either com
partmcut arc ,wo iron-shrathcd double
doors. to Facilitate the removal of cot
ton in ease OF Il fire. There arc fire.
plugs, sprinklcrs, hose, axes, etc,
placed NJ convenient points in all the
compartments and about tho platforms
which surround the buildings. The
Warehouse of the Merchants L. Farm
rrS' Company is constructed upon the
same principles. This warehouse has
five compartments, each with Il capac-
ity Of 1000 bales. Neither gas nor
electric hight is used IL the warehouse.
1t is strictly daylight business. The
Charlotte warehouse cost $4,000 per
section, or compartment. The Mcr-
chants n Farmers warehouse cost
$4,000 complete.
II Is now III order to explain tho
principles and workings of the bonded
pie character. We may take the case
of a farmer who brings bale of cot
ton to the market and who finds the
current price disappointingly low. He
does not want to sell, but he is in need
NI cash. and concludes to store his bale.
get Il cash advance on II and hold it
until the market goes up. He takes
his sample to one Of the warehouse
men. 10y whom il is received, clasScd
and graded, the bale weighed, marked
and stored. The farmer is then given
a warehouse receipt, which shows the
grade Of his cotton and its market
value on the day ii WAS stored. At
lachrd is the inspectors receipt, show
Ing the classification, weight Of the
bale and its mark, ami attached 10 this
Is thc certificate of insurance. The
receipt covers another important point.
The market price OF the cotton on the
day it was stored might be five cents.
mlc the cotton Is in the warehouse
the price may advance to six cents.
In such 4 c,Sc { receipt is designed
to give the owner the advantage Of the
rise. lie gets the benefit of any rise
that might occur. The warehouse
charges httrcn cents per month per
month bale for the storage of cotton.
The receipt is good at the banks for
lis face value, less the interest charge.
The farmer who has thus stored his
cotton can take his receipt to a store
and get goods to the amount Of every
dollar ii calls for, or he can take it to
a bank and have it cashcd. This is
but one feature of the business. At
the time called at the Merchants &
Farmers warehouse 500 bales Of cot
ton were being stored for commits
sion merchant. He wanted no cash
advance. buC he stored his cotton for
Il prUSpe tive sale to a factory. If he
sells at few points advance over the
market price on the day he stored, he
will come out very much the gamer.
| wA~ shown LOO bales of cotton
stored in one compal tmcnt by single
cotton broker.
How IS the warehouse receipt re-
@a!dcd by iinanciers as security? Mr..
j. ). Spencer, president of the Com
mcrcial National Bank, tells me that
1t i, d~ good rs can be. Money can be
sccul cd upon i bonded warehouse Ger
tiicatc as readily as upon the best
class of gilt edged paper. The owner
of cotton stored in Il bonded ware
house, whether a mill company or an
Individual planter, can get money from
the banks al the rate Of & per cent in
1crcst, the legal rate in this State, and
at which the banks can lend all the
money they want. In connection with
Mr. Constable, thc treasurer of the
Charlotte Bonded Warehouse Co., |
learn, however, that large loans had
been negotiated in this State upon the
receipts of his company at the rate of
! - pr cent. Undoubtedly loans
could bc negotiated upon these cerlili-
Gates III the Northern financial ccntcrs
at the rates prevailing there. | have
heard Of no such transactions, though
for the reason probably, that the hold
cr3 of the bonded warehouse receipts
! have had no cause to 90 outside the
home money mai kcts for loans.
| The cost Of storing cotton in the
! warehouses is SO small as to be hardly
worth entering iuto the calculations
! AS Il rule, the farmer who stores cotton
| dumps ii at the warehouse from his
own wagon. at best only a few truck
hands are needed, and as many as arc
necessary can be secured ut ten cents
per hour. The establishment OF these
warehouses is practically at amy large
cotton center in the South, but is he
ccssary first that the men organizing
it must be men of known capital ant
OF business integrity, otherwise nc
guarantee company can be found tC
bond them, and there could be moth
Ing more worthless tn. an unbOndct
company. a corporation formed O
men Of the right character will b'
bonded by any OF the large trust com
panicS, and its warehouse, built upoI
Tie proper specifications, will be GOV
cred by the insurance companies, thu
extending to that particular cente
the advantages that will accrue to an,
center where cotton is made ncgoti
able security for cash loans.
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