Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1903-09-29
aetiseellatteuas Readina.
THE WAREHOUSE PROJECT.
Col. Orr Tells What the Plan Means
to This Section.

Col. Orr Tells What the Plan Means
to 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 pro-
ject, which is printed under the head Of
THE Warehouse in the Cotton Field"
What Col. Orr says is Of particular
interest just at this time. in view Of
the big undertaking here and else
where in the south. The article Is as
follows:
| The custom Of warehousing and ad-
vancing money on cotton has confined
such operations almost exclusively to
European markets and the north for
the reason that the mills in those Sec
tions eventually used all our cotton.
Although the southern mills now use
about two and aone-quarter million
bales which Is rs per cent Of our
average crop, the former custom still
prevails and very little cotton Is stored
in the south, except by the mills them
| selves, for the simple reason that
money is not advanced at as low rate of
| interest on cotton as 1t Is done In the
north and particularly in Europe.
1t requires time to change CONNER
cial customs, but every interest Of the
south-the mills, the cotton merchants
and the farmers-are vitality interested
in securing cheap money on cotton, and
several communities are moving In this
direction.
The most important consideration Is
getting the money, and it Is strange
that the bankers of this country though
so 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 1t is regarded
as the safest security on earth, and
commands money at the very lowest
rate.
| Cotton in a 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 ena-
BILE 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 deter
ioration. Thousands upon thousands
of dollars are lost annually by far
| mers who keep their cotton exposed un-
til warm rains Of May come and rot
or discolor them. Should the farmer
need money to pay for making the crop
as most Of therk kdo-instead of press
ing his cotton on the market as fast
as it is gathered, he can put 1t 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 cot
ton on the market when 1t Is most
abundant, and enables him to sell when
his judgment dictates.
Second. To the merchant; for under
the present system; he must sell 1t
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 warehouses, has to
pay two local freights Ito and from
warehouses; and very heavy rate Of
insurance, for very few of public ware
houses in the south are standard slow
burning 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 cot
ton business of 10000 bales and every
mill center, could have one Of these
warehouses, which would be patronized
both by local merchants and cotton
merchants who sell spot cotton for fu-
ture delivery.
Without these facilities, as to freight
rates, small insurance and ability to
borrow money on the stored cotton,
these merchants can and do sell New
England mills, one thousand miles
from the field, cotton for spring deliv-
cry for less money than they sell the
southern mills 1t is all wrong-con-
trary to the natural laws Of trade
injurious to both the merchant and
in the old road, though the grades are
steep and the ruts deep than to survey
and cut out level new road.
Third. To the manufacturers these
warehouses would be of great advan-
tage, and to the smaller mills, pro-
portionately, the greatest. Now they
must build warehouses for nine months
supply of cotton, and either buy the
cotton before it is shipped out of their
pound premium for delivery in the
spring, or take the chances Of shipping
it from points of concentration, almost
all of which are at the ports, where
they incur heavy freight charges and
competition with all the world. If
they would build these warehouses,
borrow the money, and carry it them
selves, they must sell at any price their
goods will bring when these notes
mature.
At Anderson, S. c., warehouse has
been in successful operation for three
years. has paid 10 per cent dividends
and been of great value to the mills,
the banks, the merchants and farmers.
At Greenville, S. c., one on larger
scale is building, and promises to ben
eft all interests, as the three coun-
ties of Greenville, Anderson and Spar
tanburg probably manufacture 100000
bales of cotton more than they produce.
The banks and railroads must recog-
nize the changed conditions, that
whereas the south formerly raised the
cotton and shipped it north and to Eu-
rope in the raw state, now it manufac-
lures one-fourth of it, and must have
facilities for holding and storing the
starle. And the mill men, merchants
and farmers must build the ware
houses, manage them properly, see
that any breach Of trust is severely
punished and that absolute security Is
given for money advanced.-Anderson
Daily Mail.
34;" At a recent dinner Of the Authors s
club in London the bishop Of Worcester