The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1901-07-31
THE COTTON SEED TRUST.
consolidating Cotton Seed and
Collateral Interests.

n lnOSc OF our readers who were prcs
- cnt at the annual convention of cottor
!; seed crushers at New Orleans in Nav
q as well as those who followed the re-
polts OF that meeting, will recall the
: prediction made in paper read by one
:. OF thc reporter sStatl on that occasion
: as 10 the future OF the industry. While
q many of his hearers at that time
< lnouEhl the speaker was indulginu in
n ld(c prophecy, they have slnce, as a
q result of the recent combinations
chahScu th,r views, and have been
OutSpoKcn In their recognition of the
foresight which led to these prophetic
nltcrances. The paper, with the others
Ieau at the convection, was published
IN 1ull IN the Reporter Of MAY 81, This
year, and, while il is not our intention
10 indulge in any self laudation, we feel
justified in calling attention TO The
iact that the views expressed by our
representatives are finding earlier con-
lirmation IN the course of events in Tho
cotton seed industry than even he had
anticipated. Following closely upon
the convention came the news that one
"l lhe large rciincrics located at Au-
gusta, Ga, had been purchased by a
large fcrtilizing company, which had
only recently entered the cotton seed
heid as a crusher. This was followed
! speedily by the taking over of five
mills located in the Atlantic cotton
oclt, and, not satisfied with the mills
mus acquired, the company threw out
It's lincs III broader field, and took in
'hc hlnc plants constituting the South
crn Cotton Oil company, including
Doth crude mills and rclincries. Tho
same people are now reported as hav-
lhg options upon several more plants
located in the cotton belt.
In seeking the motive which prompt-
ed fertilizer manufactures TO enter
This field it must be remembered that
cotton seed meal is a source of am
mona, ana as such is Il competitor of
the slaughter house ammoniates The
supply OF the latter is largely controlled
ny thc big Four" Western packers,
and the fact that they have decided TO
enter the ferLlllzing field by The erec-
llon OF plants at the South for the
utilization of the blood and ;ankarc
from their Western works, doubtless
hau much TO do with leading the Viz
slnla and Carolina company into the
cotton seed business. Had the latter
company remained dependent upon
The smaller packers for It's supply of
blood and tankagc, or been competitors
with other makers of fertilizers for the
cotton seed ammoniatcs, they would
have been handicapped as against the
"Blg -Four" plants. which controlled
Ihelr own sources of supply. 1t is
lalr to assume, therefore, that this con-
slderation more than desire to take
up the manufacture Of cotton seed pro-
ducts Tor the direct profit which they
afford, influenced the Virginia and
Carolina company in its move into this
field.
But the tendency toward combna-
uon does not end with the operations
OF this company. In the valley il is
reported that cntcrprising promoters
are securing options on various plants
Tor the purpose of combining their out
put. Whether tins will be accom-
pllshed this season remains to be seen.
Dut from Texas also comes the in(or-
nation that "Barkis is willing,n and
IL would not be surprising if the con
solidatlons already Effected in that
State should broaden out, since the
petroleum developments have been at
tended with somewhat of modilica-
non Of the views of the average Texan
AS to trusts and combinations. Ii
must not be assumed that with the
consolidation of existing mills the
erection OF new ones will cease. IL
costs but few thousand dollars to
Dulld Il crude mill, and there are al
ways persons ready TO rush into fields
concerning which they know but little.
The list of projected mills published
in the last issue of The Reporter would
be appalling if it were no, safe TO pre-
dict that not onc-hali of them will ever
be built. AS consolidation progresses
upon the lines which It now seems TO
be following 1t will become every year
more dliilcull Tor new mills to operate
successfully, because the sources of
supply of seed, as well as the channels
through which the products are DIS
lrlDutcd, will be better controlled by
the existing plants.
There is, naturally, a great deal Of
speculation as to what the effect of the
later consultations wi be upon the
leading companies left in the cotton
seed aud fc!tlllHing Industries. While
there are no surface Indications other
han those furnished by the operations
IF the Virginia and Carolina company
that these two industries VIII assume
closer relations, yet the sales of The
stock of the leading company, as shown
by the transaction on the Stock EX-
change OF late, may indicate move
mcnt of broader proportions than have
| yet been fOrcshadOwed outside of the
predictions at New Orleans to which
we have referred. 1t certainly be-
hoovcs those who have investments in
the cotton seed industry to be alert to
all that is gong on about them, what
ever their personal views may he as to
the principles involved in consolida-
non. The combining of IA number OF
competing concerns in .hc sarlc line is
act 80 far-rcaching in its effect as the
unifying of collateral interests which
are not competing, but which serve to
control the distribution Of products all
ne way from the very sources of pro.
ductiOn to the ultimate nsumptlon
And this is what is forcs hadowcd b,
the movement already well under way