The Montgomery advertiser., 1906-09-09
MAY FORM A
 CORPORATION Cotton Growers Consider
 Plan. PROTECT THE DISTRESSED To Buy Up All Staple At Fair
 Price. According to Resolution Introduced, sloo,eoo,ooo Company Win Be Floated to Give south's Product
 Its Just Valuation.

l Hot Springs, Ark. Sept. s.-The Ex- ecutive Committee of the Southern Cot l ton Association concluded it's sesjion l this afternoon and edjourned subject 1 to the call of the President of the As- sociation.
 l The principal business transacted at today's session was the consideration of resolution looking to the forma- | ton of a corporation with capitaliza- | tion of Sl00,0o0 900 for the purpose of | taking care of the distressed" cotton in the South. The resolution follows; Whereas. After two years experi- ence in attempting to maintain fair price for cotton and realizing that wa are in our present status an advisory board; in order to put ourselves In po- sition to enforce our minimum. be 1t Resolved. That we organize the Southern Cotton Association into chartered corporation for the purpose of buying. selling and warehousing cot ton, and that we open books or sup- scription for a capital of $100,o0o,00o, the shares to be S5 each
 That 6 President and Board Of Directors be appointed, and that each State, county and precinct president | be furnished blank certificates and books of subscription and that we i'm medfately DeBin a CdHiphlSh " AoSS this capital stock.
 The resolution was passed over as unfinished business. and committee of five, consisting of John F. Allison ot North Carolina. E. D. Smith of South Carolina, & A. Witherspoon Of Missfs- sippi, F. M. Maxwell of Louisiana ana J. C. Hickey Of Texas was appointed 10 prepare definite and detailed plans Tor the purpose of Incorporating the asso- citation as outlined in the resolution, and report at the next meeting of the Executive Committee
 Jordan Explains Resolution.
 President Harvie Jordan gave the following explanation or the resoio- tion
 of distressed cotton, and by distressed cotton, mean cotton that Is forcea on the market by people who are un- able to finance cotton and are unable to liquidate maturing obligations.
 The corporation proposes to go into
 the market and buy up tnis class 2. cotton when 1t is being oHered at
 prices below the minimum fixed by the assocfation. a~d will be held by the corporation UT Cil the market advances
 to the minimum price. The cotton will be stored in various warehouses
 throughout the cotton belt, wherever bought, and can be used to margin
 
 ever 1t becomes necessary.
 Under this plan the cotton forced upon the market can be kept out or the hands of exporters and spinners and will regulate the price of cotton by the legitimate laws of supply ana demand.
 'It will also give the association a strong financial standing in the eyes of the business world. and particu- iarIy with the cotton trade generally and will at all times defend and pro tect the cotton growers of the South in maintaining a fair and profitable minimum price for their staple"
 With reference to the unwilling ness of the committee to make an es- timate of the crop Mir. Jordan said:
 The reports that are being sent out over the country with reference to any forecast of the yield of the present crop by the committee are very mis- leading The committee did not make up any statistical crop report because it regarded 1t as too early in the sea- son to undertake to make an estimate on the yield.
 'The committed, however, was thor oughly satisfied from the information submitted by different committeeman from the various states, based upon fairly accurate data which they had gathered that a heavy deterioration has taken place in the fruitage of the crop throughout the belt during the past two weeks, and the committee was we'll satisfied that the yield of the crop this season would be under 1 the private estimates which are now being issued.
 Nothing Less Than Ten Cents.
 Later in the season, the association | will gather full and complete data | with reference to the probable yield | of the crop and issue 1t for the ben- | eft of the members of the association. l The only thing that the committee is | thoroughly agreed on at the present | Is that no cotton, basis middling. | should be placed on the market and | sold for less than ten cents per pound. | and the entire cotton growers of the | South are appealed to for the purpose | of moving the crop slowly and thereby | reducing the supply to such an extent | In the near future that the demands of the mills will continue to advance 1 to the minimum price of 10 cents as fixed by the committee"
 Tn order that the people may be | reached and the resolution fixing the | minimum price at 10 cents may be | thoroughly canvassed and that an ap- | peal may he made directly to the cot | ton growers, the committee decided to | hold meetings In the different cotton | raising States at which President Har- vic Jordan. Field Agent Smith and | Executive Committeeman Witherspoon i of Mississippi. will speak. The item | erary arranged for the speakers as fol- | lows:
 Jackson. Miss, September 20; Mont gomery, Ala. September 25; Shreve- port, La September 27; Palestine. Tex. | September 2s; Taylor. Texas. Septem- Der %: Waco, Texas. october 1; Dal- las Texas. October 2; sherman. Texas, october g; Oklahoma City. okla, octo- her {: Fort Smith. Ark, October 5; Pine Bluff. Ark, october 6; Orange burg, S. C., October 8: Raleigh. N. C.. | October Q.
 Among other business transacted by | the committee at it's concluding ses- sion was the adoption of a resolution endorsing and approving the holding | of international annual conventions be- | tween representatives of the Southern | Cotton Association and representatives | of the American and foreign spinners | and manufacturers of American eot- l ton.
 A resolution was also adopted au- thorizing the committee appointed to | take steps for the incorporation ot the l