Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1901-07-31


tilizer company, which had only re-
Gently entered the cotton seed field as
a crusher. This was followed speedily
by the taking over of five. mills located
in the cotton belt, and, not satisfied
with the mills thus acquired, the COM
pany threw out its lines in broader
field, and took in the nine plants con-
stituting the Southern Cotton OIL COM
pany, including botn crude mills and
reflneries. The same people are now
reported as having options upon seve-
raj more plants in the cotton belt.
In seeking the motive which prompt
ed fertilizer manufacturer to enter
this field, 1t must be remembered that
cotton seed meal Is source Of ammo
mia, and as such is competitor Of the
slaughter house ammoniates. The sup
ply Of the latter is largely controlled
by the big Four" western packers,
and the fact that they have decided to
enter the fertilizing field by the erec-
tion Of plants at the south for the utili-
zation of the blood and tankage from
their western works, doubtless had
much to do with leading the Virginia
and Carolina company into the cotton
seed business. Had the latter COM
pany remained dependent upon the
smaller packers for its supply Of blood
and tankage, or been competitors with
n<6 lie oF %o,. 6a ~
ton seed products for the direct profits
which they afford, Influenced the Vir-
ginia and Carolina company in it's
move into this field.
But the tendency toward combination
does not end with the operations of
this company. In the valley 1t Is re-
ported that enterprising promoters are
securing options on various plants for
the purpose Of combining their output.
Whether this will be accomplished this
season, remains to be seen, but from
Texas also comes the information that
"Barkis Is willing" and it would not be
surprising II the consultations al
ready affected in that state, should
broaden out. since the petroleum devel-
opments have been. attended with
somewhat of a modification Of the
views of the average Texan as to trusts
and combinations. It must not be as
sumed that with the consolidation Of
existing mills the erection of new ones
will cease. 1t costs but few thousand
dollars to build crude mill, and there
are always persons ready to rush into
fields concerning which they know Tut
little. The list Of projected mills pub
lished in the last issue of The Rep orter
would be appalling were 1t not safe to
predict that one-half of them will new
er be built. AS consolidation progresses
upon the lines which it now seems to
be following, it will become every year
more difficult for new mills to operate
successfully, because the sources OF
supply Of seed, as well as the channels
through which the products are dis
tributed. will be better controlled by
the existing plants.
There Is, naturally, great deal Of
speculation as to what the effect Of the
later conditions will be upon the lead
ing companies left in the cotton seed
and fertilizing industries. While there
are no surface indications other than
those furnished by the operations of
the Virginia and Carolina company,
that these two industries will assume
closer relations, yet the sales Of the
stock Of the leading company, as Is
shown by the transactions on the
stock exchange Of late, may indicate
a movement Of broader proportions
than have yet been foreshadowed out
side Of the predictions at New Orleans
to which we have referred. 1t certainly
behooves those who have investments
In the cotton seed industry to be alert
to all that is going on about them.
whatever their personal views may be
as to the principles involved in consoli-
dation. The combining Of a number
of connecting concerns in the same line
is not so .far-reaching in its effect as
the unifying of collateral interests
which are not competing. but which
served to control the distribution of
products all the way from the very
sources Of production to the ultimate
And this Is what Is fore
shadowed by the movement already
in the cotton seed industry.