Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1905-10-24
STORAGE AND INSURANCE.

STORAGE AND INSURANCE.
Pursuant to instructions OF the ex-
ecutive committee at the meeting held
in Yorkville on October. 8, President
Spencer Of the York County Southern
Cotton association has collected lot
Of important information as to cot
ton storage and insurance. and the
rate at which money can be borrowed
on warehouse receipts, and incorpor-
a.ed the same in circular letters which
he is sending out to the various town
ship associations.
The warehouses Of the county In
clude three standards at Yorkville,
with a capacity Of 5000 bales; three
standards at Rock Hill with a capacity
of 1000 bales; sufficient warehouse ca
pacity at Fort Mill for all the cotton
that is raised In Fort Mill township;
accommodations at Gastonia for as
much cotton as may desire to go there
from Bethel and Kings Mountain
Townships; one warehouse at Hickory
Grove. There Is no warehouse In Bull
locks Creek township, but the farmers
are all prepared to keep their COTTON
at home.
The Loan and Savings Bank OF
Yorkville and w. r. Carroll agree TO
advance money on warehouse receipts
at Z per cent; money may be had In
Rock Hill at per cent on receipts rep
resenting 10 bales and over ana at
per cent on smaller lots.
The storage and insurance rate In
Yorkyille warehouses Is not exceeding
is. cents per bale per month; the ROCK
Hill rate Is Is to 25 cents per month.
the Gastonia rate Is 10 cents per month
and the Hickory Grove rate Is not ex-
ceeding % cents per month.
Included in the information sent out
to the. township associations Is the
following letter from Capt. j. r. Lind
say Of Yorkville giving full details as
to, the terms and conditions relating
to the insurance Of cotton on planta-
tions:
In reply to your request that / give
YOU detailed. information about insur-
Ing cotton on plantations, beg to say
as follows:
First. Cotton being an article which
can be converted into money at any
time, no inspection by the insurance
agent Is necessary. The assured mas
only to describe the location Of the
property on which the cotton Is con-
tained and the agent can write the
policy from this description without
going to the plantation where the cot
ton Is stored.
Second. The assured must take sam
ples of the insured cotton and list OF
the weights of the bales and keep this
list and samples In a different building
from where the cotton Is stored. Tne
reason for this Is obvious: In case the
cotton is burned these weights ana
samples Will be needed to adjust the
amount OF the loss by. In this
connection, will say that In case or loss
by fire, the insurance company WIZ
pay for the cotton at the market price
the day of the fire, up to the amount
of the policy, Of course.
Third. The cotton can be stored
either In an outbuilding or In the open
ward. The rate will be the same In
either location, the only requirement,
that is made Is that the cotton shail
be 200 feet away from any gin mousse
woodworker or manufacturing estab-
lishment.
Fourth. The full co-insurance clause
ia placed on all cotton policies, wher.
ever located. This clause means tnat
the cotton must be insured for lts run
value: That failure to insure Tor lts
full value makes the assured an m
surer to the extent Of such dehcit.
For example: $1,000 worth of cotton;
$500 insurance. A fire burns the enure
lot: the company loses $500, and the
insured $500. Say the fire burns only
$500 Of the $1,000 lot, the company
loses $3.50 and the assured $3.50.
Fifth. The assured has the right 10
cancel the policy at his option, at any
time from the day 1t Is written unIli
the expiration Of the insurance. IN
return all Of the premium paid. except
the amount, at short term rates, ne
cessary to carry the insurance for the
time 1t was in force.
Sixth. Rate Of premium. The rate
of insurance Is not so much per paie
but so much per 81 on the value OF
the bale. From this fact when the
price of cotton is high the insurance
is high per bale, and Is correspondingly
low when the price Of cotton fails low
er. At present the rate on cotton on
plantations Is 40 per annum. Putting
the maximum weights and prices that
could possibly apply at this time 70
saw. $1,000 worth of cotton we would
have something like the statement
that follows: Say, 20 bales cotton
10 600 pounds, at 10 cents per pound-
81 ,OO0." $1,000 for one year at 40
$40 or 16 2-3 cents per bale per month;
for one month 40 cents per month; tor
two months 80 cents per month; !or
three months 26 cents per month; for
four months 25 cents per month (ano
so on the rate being l cent less per
month as the time Of storage IN
creases).
Suppose a party took policy for
twelve months at $40, and sold the cot
ton at the end of one month; the COM
pany would owe him $32, the difference
between the annual premium paid, $4o,
and the price Of the month the policy
had been in force, $500. The rate OF
premium looks high, but l suppose II
is caused from the fact that In case
of fire there are so few people at plan,
tations that the fire would get gooa
headway and the property be almost
always totally destroyed. / shall be
glad to furnish any additional infor.
nation and will say further that II
your association will make the proper
effort and present the matter through
the right channel. 1t Is possible that
the insurance companies will give
better rate on plantation cotton than
the one now offered.