The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-11-27
THE WACO PLAN"
NOT INDORSED
BY SAVANNAH BANKER.
FRANK CRITICISM or 1T MADE TO
PROMOTER By MIR. M. ID. LANE

Relieves Planters Should Not he En-
couraged to Speculate, and III They
VIII II Is Better They Sell Their
Crop of Cotton and Speculate in
Futures-If Farmers Hold Cotton
Until MIL Men Can Size Up Crop
Farmers VIII he Forced TO Con-
tinue Holding Until MIL Men Are
Ready TO Buy.
The Waco Plan" of building cot
ton warehouses throughout the cotton
producing territory Of the South has
become more or less familiar since
the plan was inaugurated by the Bus
mess Mems Club and the Farmers In
stitute OF Waco. Tex.
Those behind the movement are now
trying to secure expressions of opinion
as to the feasibility and practicability
of the plan from bankers. cotton men
and merchants in all parts OF
the country, and to this end have re-
Gently sent letters and specifications
of the plan to several OF the bankers
in Savannah.
letters set forth the present grievances
of the producers of cotton in the poor
marketing facilities now afforded him,
and the necessity Of disposing Of his
cotton so soon as 1t shall be In condi-
ton to market, instead Of holding it
until such time as he can get what
he considers a fair price for 1t.
TO Build Warehouses.
The Waco Plan proposes to remedy
this by the construction Of warehouses
at all such points as the yearly re-
ceipts of cotton shall warrant, to have
these structures owned and operated
by a company that shall be organized
for their building, and which Il is pro-
posed shall be composed Of farmers.
merchants and bankers, those direct
ly interested in the cotton crop.
Various advantages are claimed for
such O. plan, and these are set forth
at length by those promoting II. But
they do not meet the views Of the
Savannah men who have given the
matter their attention as the letter
from Mr.: Mills B. Lane to Judge Eu-
gene Williams, Of Waco, yesterday,
sets forth. Mr.. Lane says:
Referring TO letter received from
w. w. Seley, president, Waco State
Bank. and other bankers OF Waco, the
writer begs to advise that he does not
see why such a warehouse system as
outlined In your circular letter should
be organized, for the following rea-
sons:
why FIan would Fail.
Planters should not be encouraged
to speculate, and II they do speculate,
IL is best for them to sell the crop and
In ffrffroa narrUtflc
charges then amount to nothing. and
the money received from cotton could
be put In O savings bank, or lent out,
and be bringing in some revenue 10
the planter. There are sufficient ware
houses throughout the country that are
operated by merchants and bankers TO
hold all the cotton that should be held
in the country.
Should the planters make more cot
ton than the trade demands. It would
be a mistake for them not to sell as
soon as the crop has been gathered
and put in condition to be marketed,
as there is always some doubt as 20
what the crop will be until the plant
ers have had time 10 market at least
half the crop The cotton mills are
afraid to let too much cotton get out
OF sight before they buy their stock,
and In that way pay good prices for
'NtftfRAAN
but II the cotton IL carried over until
spring, and 81 Is known there Is SUM-
Client cotton 10 meet all demands, the
mills will force the planters 90 carry
the cotton until they need AZ. saving
the carrying charges.
Money Markets Eject.
MANY times a little stringcncy IN
the money market causes banks 10
call Tor more margin, or call the loans
they may be carrying on cotton, and
In that way, the market could be fore
I'd lower than Il should go, and lower
than u would have gone had the plant
ors sold the crop during the harvest
Ina season. making the mills hold the
bulk n the stock u cotton, rather than
themselves
After mills buy cotton AZ high prices