The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-08-25
COTTON WAREHOUSING SYSTEM.


of the Farmers Convention in Raleigh
on August End, and of the Farmers
Alliance at Hillsboro the week fol-
lowing, in adopting resolutions rela-
tive to cotton warehousing. Three
plans for this have been proposed
one by Judge Eugene Williams, of
Texas, one by j. w. Bell & Co., of
Louisville and New York, and one by
S. F. B. Morse, formerly general pas
senger agent of the Southern Pacific
Railroad and afterwards the partner
of Daniel J. Sully, the cotton operator.
The plan endorsed by the Farmers
Convention and the Farmers Alliance
in this State is that suggested by
Judge Williams, of Waco, Texas All
three of the plans are similar in their
essential features. Certainly they al,
aim at the same end-the storing
until fair prices can be obtained
for it, But in detail there are diff
ferences in them. 1t is believed, how
ever, that this can be overcome and
the best points in the various plans be
incorporated in the one finally adopt
ed. To this end Judge Williams and
Mr.. Bell have, at the suggestion of
Mr. Bennehan Cameron, of this State,
first vice-president of the Farmers
National Congress, already had con-
ference in New Orleans, and Mr..
Morse and Judge Williams are to have
a similar conference before the meet
ing of the Cotton Producers Conven-
ton and the Farmers National Con-
gress in ST. Louis on September 27th.
At the st. Louis meeting, to which
some two hundred delegates have
been appointed from this State, the
warehouse scheme is to be discussed
in all it's phases, and it is desirable
that something definite be in hand to
lay before it.
In a general way, the proposition
is to organize complete system of
warehouses in the important cotton
towns of the South, and to issue stor-
age receipts under a system whereby
loans may be negotiated and also be
made to take the place of the actual
exchange of the spot cotton.
To accomplish this a company with
sufficient capital will be formed with
headquarters probably at New York.
The parent company is to be composed
of men we'll known in both the imam
cial and commercial worlds, not only
of New York but of the South as we'll.
It will issue storage receipts on the
cotton placed in the warehouses OF
the subsidiary companies, which Will
guarantee-aS near as is consistent
with safety-the weight, grade, care
and delivery of the cotton SO stored. IL
! is proposed that these warehouses will
be owned and controlled by local
companies. and will be formed and
operated on a plan that will be OF
best interest to all.
In order that the scheme shall be
entirely successful. cotton Warehous-
ing system must make the holder OF
warehouse receipt just as secure as
the holder of a national bank note.
The practical effect of such an or
ganization would be appreciated, 1t is
believed, by all lines interested in cot
ton. It would enable the foreign ana
domestic spinner to carry as much
cotton of just the quality desired as
they should require. The cotton rae
tor could carry his stocks with per1ecl
security in any number of places IN
stead of only one point, since the
banks would accept these recelpts DIS
collateral from any point. 1t is
further desirable that the receipt De
made interchangeable and be as &C
ceptable as the actual cotton.
It will be observed that the idea is
not the formation of a trust, pul
simply a plan by which the planter IL
he SO desires, may hold his cotton for
better prices. North Carolina pro-
duces nearly 100000 bales of cotton
and if 20 per cent. of this amount
which is 10000 bales, should be
placed i'm warehouses, the certificates
of which would be negotiable the
North Carolina farmer would be able
to pet CHEAP money and still own his
cotton, which he could sell as the de-
,nand of the market might dictate or
suggest. In other words. it is intend
ed, by regulating supply and demand,
to bring about a more equitable dlS-
tribution of the profits.
At the present time the warehouse
season varies from three months TO
nine months, according to locality
Under the proposed system the season
would be heightened very material
Nv, as the consumer would be assured
of uniform warehousing and low IN
surance rate and as the simplest rule
in economics is that all products
should be left as near their base OF
production as possible until ready for
consumption, it would apply in this
case. Unquestionably the warehouse
feature as a means to the storage ana
distribution of miscellaneous merchan-
disc is an increasing factor, and the
South today is not adequately provid-
ed with such facilities The ordinary
form of cotton warehouse is unable