The Birmingham age-herald., 1905-04-16
Cotton Kings Attention Absorb-
 ed With Warehouse Project
MEANS MUCH TO SOUTH
Southern Cotton Corporation Absorbs Local Warranty Warehouse Go. Suly Points Out Increased
 Consumption of Cotton.

absorbed by pufcndSe yesleiudS liie Ndi- ranty Warehouse company of Blrming- ham, thereby insuring for this city one of the cotton warehouses to be establish ed throughout the cotton-growing states The warehouse here in Birmingham will be situated at Avenue A and Thirty-sec- ond street. It's establishment here will, it is believed increase enormously the importance of Birmingham as cotton market and will increase appreciably the Birmingham district
 Accompanied by A. s. L. Shields Of Philadelphia, Mir. Sully spent yesterday in Birmingham. on his way from Meridian to New York. MT. Sully was here in the interest of the cotton warehouse propo- sition that he and his associates nave been working on recently.
 As result of yesterdays conference here the Southern Cotton corporation ab- sorbed the Warranty Warehouse com pany of Birmingham
 The purpose of this Southern Cotton Corporation is to establish at geograph- ieally strategic points in the cotton-grow- ing states warehouses where baled cot ton can be stored in return for ware house receipts to be used as negotiable paper in banking circles throughout the world.
 MT. Sully believes that the operation of this system of cotton warehouses will financially accommodate theefarmer. give stability to the price of cotton, encourage cooperation between the planter and the manufacturer and produce working ideal for the transaction of cotton busi- ness in this country as well as In Flu ropean and Asiatic markets.
 What the System Will Do.
 MT. sully was the guest of honor at dinner given last night at the residence of w. D. Nesbitt where MT. Sully met number of persons prominent in the financial and social circles of Birming- ham. MT. sully leaves this morning for New York.
 Not Interested In Speculation.
 In commenting yesterday afternoon at the Hotel Hillman on the cotton situa- tion MT sully said:
 My whole attention at this time Is absorbed in this cotton warehouse pro- ject believe that the plan we have outlined will solve the cotton problem, insuring convenience to the cotton plant CT, minimizing risks, placing the cotton market on stable basis, and promoting a spirit of intelligent cooperation be- tween producers and consumers.
 What we aim to do is simply this: Establish at certain points, sufficiently numerous, in the south warehouses where the farmer may store his cotton and get in anticipation of It's sale. a re- ceipt which will be negotiable through out the world at S5 per cent of the mar ket value of cotton.
 This system will prevent panics, give to the farmer se1f-reiance, make him nde- pendent of fluctuations in the market and lift the whole cotton business to a level of certainty 1t has never yet attained. It will, in my judgment, enable the farmer to get for his cotton prices that are justified by the constantly increasing consumption of cotton"
 "upon what do you base your opinion that the worlds consumption of cotton is constantly increasingly was asked.
 Reason for His Belief. 'Upon facts that are known to every one" said MT. Sully. Cotton Is the great est commodity in the world-its use Is more general and more widespread than that of any other commodity. It's use in- creases with the march of civilization. As people emerge from savagery and semi barbarian into enlightenment they begin to use cotton, and continue to use it in constantly increasing quantity. As manu- facturers increase in number the demand for cotton becomes greater and greater. Cotton Is used in every form of manufac- ture, except in the manufacture of min eral products.
 Consumption Increasing. Now there are 1, ,500, GOO people on the earth. Of these, 500.00O,000, or B 1-3 per cent. are consumers of cotton. As the other 6G 2-3 per cent or 100000 GOO people. become more civilized, they will need cotton and come to use It. Though the demand for cotton is destined to increase tremendously, the supply Is, in the very nature of things. circumscribed. In ten or fifteen years the consumption of cotton will demand a crop of 200O0,000 bales. The supply must come from the southern states.
 Present Prices Too Low. q do not want to be interpreted to mean that I am pulling the price of cotton The speculative feature of the situation interests me comparatively lit tie. l am content rather to study con dltions and to state the facts as l see them With that explanation 1 may say that 1 believe the present price of cotton Is relatively low when the enor- nous consumption of the staple is con sidered It goes without saying that the consumption In America and Europe is steadily increasing.
 Outlook In Asia. 'In Asia, and especially in the far east. there are two features that should be recognized. Japan is consuming more cotton than ever be.ore. She has 100000 men In the field Of all articles consumed by that army 60 per cent Is cotton. A similar condition exists in the Russian army. In Manchuria, 'corea and China the consumption is rapidly advancing Russian placed a tariff of cents q pound on all American cotton and cotton goods imported into that part of Man chiria once controlled by her, When the Japanese drove her out English mer- chants sent their cotton goods into Man churia. corea and many ports of China, and placed orders that will exhaust the output of English mills til 1907. This is a fact known by all well informed cotton mem
 Russo-Japanese War.
 What effect will the expected close of the Russo-Japanese war have on the con sumption of cotton? was asked.
 'sThe end of the war will unquestionably increase the demand for cotton. The arts and manufactures will be stimulated. and the markets for American cotton will be enormously enlarged"
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