The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-05-22
WILL FINANCE MILLS
OBJECT OF CHARLOTTE'S NEW
COMMISSION COMPANY.
DO AWAY WITH MIDDLE MEN.
ENABLE MANUFACTURER TO DEAL
ON CASH BASIS.

The Charlotte Company Backed by
New York Company with S1O,-
Oo0. 900 Capital and VIII Have Its
own Selling Agent-WilI ElimI-
nate Speculation, IL Is Claimed,
and Enable the Manufactures to
Know to Whom He Sells and for
what Price.
Charlotte, N. c., May 21.-Dr. John ii.
McAden, president of the Cotton Manu-
facturers Commission Company, of this
city, recently organized, tells the Observ-
er that the contracts for the financing of
his company have been drawn up and
signed.
within ten days" he says, our COM
pany will be ready to do a selling agency
business"
Speaking of the details of the scheme,
he says:
THE Manufacturers Commercial Com
pany will cash all sales that come through
our company. Our New York company is
backed by two New York trust companies
and capital amounting to $l0,000,000 To
illustrate our operation, A mill man here
will sell his yarns TO a party in New
York or Philadelphia. He will send one
bill of goods to the purchaser and a du-
plicate bill Of lading will be given to us
We indorse it; send to the Manufacturers
Commercial Company and it will cash the
sale on the day the invoice is received
In other words we will do spot cash
business and the money resulting from
the sale will be placed to the credit of
the seller either in New York or IN any
local bank. Under our system he will
have the advantage of knowing to whom
he sells and the price actually received
for his goods. All speculation will be
necessarily eliminated. Under the present
system as we sell to Northern commits
sion men, we never know to whom cur
production goes, or what it sells at; and
we do know that there is much snecula-
tion and that we are hurt by It.
I'VE will make a success of our busi-
ness" continued DIR. McAden. The COM
mission men charge and 52s per cent for
commission. We will never charge over
per cent"
the contracts Closed.
The business was adjusted to-day by
George D. Mumford. Of New York. attor.
ney for the Manufacturers Commercial
Company, and Burwell. Walker G. Cansler
| for the home company.
General Manager George B. Hiss said:
"Our company has just made two con-
tracts to-day. One is with the Manu-
facturers' Commercial Company, by which
they will finance our company. The agree
ment is that we handle cotton business
for the Commercial Company south of the
Potomac and east of the Mississippi river
In this territory we will handle yarns
cloths, hosiery, and every other kind OF
cotton manufactured goods and the Com
mercial Company will do the selling and
guaranteeing.
The other contract is with the CON-
| mission house of James Freeman Brown
Company of New York City. They will
act as our exclusive selling agency, and
they will have branch agencies in Bos-
ton. Philadelphia. Albany and in other
places. We sell through one house, to
prevent duplication of orders to sell
Our general plan in organizing is origi-
nal, though the plan for selling direct
to customers is not new. 1t is done suc-
| cessfully by the wool manufacturers and
understand that the hardware manufac-
turers are now selling direct.
Neither the commercial company nor
the Freeman Brown Company owns stock
in our company which is Independent. and
is owned entirely by Southern people. We
offer no stock for sale.
1--WE wish 1t understood that our com
pany has no connection whatever with
the Southern Cotton Spinners' Associa-
ton"
ENx nm N m