Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1903-10-07
THE WAREHOUSE PROJECT
Col. Orr Tells What the Plan Means 10
This Section.

In the current issue of the Dixie
Magazine, Col. James l.. Orr, Presi-
dent of the Piedmont Manufacturing
Co, describes the new warehouse
project, which is printed under the
head of "The Warehouse in the
Cotton Field" What Col. Orr says
is of particular interest just ut this
time, in view of the big undertaking
here and elsewhere in the south.
The article is as follows:
The custom of warehousing and
advancing money on cotton has con-
fined such operations almost ex-
clusively to European markets and
the north for the reason that the
mills in those sections eventually
used all our cotton. Although the
southern mills now use about two
and one quarter million bales, which
is 25 per cent of our average crop,
the former custom still prevails and
very little cotton is stored in the
south, except by the mills themselves,
for the simple reason that money is
not advanced at as low rate of
interest on cotton as it is done liz the
north and particular in Europe.
1t requires time to change CONNER
cial customs, but every interest of
the south--the mills, the cotton
merchants and .he farmers-are
vitality interested in securing cheap
money on cotton, and several COM
munities are moving in this direction.
The most important consideration
is getting the money, and it is strange
that the bankers of this country,
though 80 much ahead of those in
Europe in enterprise, are woefully
behind in the matter of advancing
money on cotton. Here the rate is
high, and investment not sought,
whereas in Bremen, Paris, Liverpool
and London it is regarded as the
safest security on earth, and COM
mands money at the very lowest
rate.
Cotton, in reputably managed
standard warehouses, fully protected
by insurance, is the best security in
the world. These warehouses should
be built and managed in the south,
and will not only give fair returns
for the Investment, but prove of
inestimable value
First. To the farmer, for it will
enable him to hold such part of his
crop as he does not wish to sell at
small cost, and free from danger of
fire or deterioration. Thousands
upon thousands of dollars are lost
annually by farmers who keep their
cotton exposed until warm rains of
May come and rot or discolor them.
Should the farmer need money to
pay for making the crop-as most of
them do-instead of pressing his
cotton on the market as fast as it is
gathered, he can put it in one of
these warehouses, obtain a receipt
for it, giving number of pounds,
grades and insurance clause, at cost
of say 20 cents per bale per month ;
take that to the nearest bank and
borrow say 80 per cent of the value
of the cotton. That relieves him OF
his obligations to the merchant,
avoids forcing his cotton on the
market when it is most abundant,
and enables him TO sell when his
judgment dictates.
Second. To the merchant; for
under the present SYSTEM he must
sell it Immediately to pay the man
who has advanced to him; or, if he
buys for cash, to pay for the cotton
itself for, if he undertakes to ship
it for storage he finds few safe ware
houses, has to pay two local freights
Ito and from warehouses) and very
heavy rate of insurance, for very few
of public warehouses in the south are
standard slowburning constructions
equipped with modern fire protection
With the same facilities for shipping
etc, given by the railroads to the
congresses and northern mills, every
town with q cotton business of 20, ,00(
bales and every mill center, coulG
have one of these warehouses, which
would be patronized both by loca
merchants and cotton merchant.
who sell spot cotton for future
delivery.
Without these facilities, as tc
freight rates, small insurance anC
ability to borrow money on thu
3stored cotton, these merchants car
and do sell New England mills, on'
thousand miles from the field, cottol
for spring delivery for less money
than they sell the southern mills
1t is all wrong-contrary to the
natural laws of trade-ipiurious tt