The Birmingham age-herald., 1906-01-13


 vicious provision"
 It is likely that the republicans on the committee will agree to further changes in the Hepburn bill before meeting again with the democratic committeeman. Some of the republicans are anxious to incor- porate provision which will make it im- possible to bring action for violation of rate statutes wherever the violation oc-. CUTS.
 ----~-~~--~~----~------ --~--------------------~ power to invest such portion of it's funds as may be deemed advisable by its direc- tors in notes or bonds secured by first mortgages on the plants of the various local companies connected with it. Of the amount of capital to be paid in, at least 90 per cent should be reserved for the companies to be organized at the various local points in order that the Southern Warehousing and Warrant company may be owned to a large extent by the various individual warehouses; thus assuring a management in the interest of those who provide it with business It should not be the purpose of the Southern Ware housing and Warrant company (which for brevity l shall henceforth refer to as the General company to establish warehouses at points that already have ample facilities, and in this way it would not come Into competition with establish ed warehouses that afford ample stor- age room and reasonable insurance rates It's primary object on the contrary, should be to encourage the building of ware houses at points where they are needed, which would result In the gradual estab- lishment of complete and efficient chain throughout the south
 Warehouse in Birmingham.
 There has recently been erected In the city of Birmingham an absolutely fire proof warehouse, built of reinforced con- crete provided with automatic sprinklers. and this warehouse, believe, carries the lowest rate of insurance on It's contents or any In the United States A bale of cotton therein can be insured at the rate of 2 cents per month. The insurance rate on barrel of sugar is 1-3 of a cent per month. This company Issues receipts that carry insurance on their face and were these receipts guaranteed by a large and well known company the only obstacle l In the way of their being ideal col lateral would be removed
 It IS not my purpose to discuss the legal phase of this question, although l am aware that in at least four of the southern states. including Alabama. add- | tional legislation is needed before the DOS session of a warehouse receipt represent Ing goods will give absolute and incon- testable title to same. The general ware | housing company, however, could take this matter in hand and exert It's inf1u- enee In the various states in such way as to speedily secure any desired leg islation.
 Practical Example Cited.
 Tn order to illustrate the practical op- erations of the plan that have suggest ed, let us assume that the general com pany has been organized, and that the citizens Of Macon, Ga., for example, real ize the importance of having a large bond ed warehouse in their city. It is desir- able that local interests own the ware house, and we will assume that $lO0OO0 has been secured for the purpose of erect ing modern establishment; s90,00O of this amount being required for the erection of the plant, and the other $10, 900 being sub seribed by the Macon company to be known as Warrant Warehouse No. 1, to the capital stock of the general com pany. We will then assume that 1t Is de- sired to build a similar warehouse at | Opelika, Ala, of a somewhat smaller ca paclty, to cost, say, $56 900. The company is organized with capital stock of S6O, ,0OO ot which $55,0O0 is to be expended in the erection of the plant and S5000 paid for subscription to stock In the general com pany. Here, again. local people own and control the local warehouse, to be known as Warrant Warehouse No. 2, and as would be the case in Macon, with & charter providing for periodical inspection of the local warehouse and guaranty of it's receipts by the general company We will assume that in the Opelika case 1t be- comes necessary to borrow S20,0OO to finish the warehouse. The company therefore would authorize an issue of five or ten- year bonds at per cent interest to pro- vide for the additional funds those bonds all to be taken by the general company. Ordinarily the placing of bond on a warehouse property would affect the value of its receipts, but 1t would not be so in this case, as they would be guar anteed by the general company. In the course of a few years the warehouse at opelika, proving a financial success, It's bonds could be retired by the local com pany. or they would be sought by local in- vestors. and the general company could dispose of them, thus reimbursing itself for similar investments at other places
 The various warehouses in the system would, of course. pay & reasonable prem ium to the general company for the guar anteeing of their receipts, which would constitute together with interest on bonds of the local companies, and on its other investments, the source of revenue of the general company.
 Chain of Guaranteed Warehouses.
 ''If this plan should be carried out we would in the course of few years see & chain of guaranteed warehouses extend
 
 receipts would clearly describe the charac- ter of the goods represented, convey title to same, specify the amount of insur- ance and being guaranteed by the general company with its large assets, would be good delivery and good collateral all over the country and there is no question that the operation of these warehouses would effect a revolution in the conduct of the cotton business, which would tend to nar- row the range of fluctuations in the price of the staple. We have all 3ealzed in the past eighteen months the evils that arise from a range of to IS cents In a single year. and think all agree that If f1uctua- tions could be confined to a range of 2 cents during a season, that 1t would be much better for all concerned. There is no surer way of bringing about these de- sirabe conditions than by providing for the proper storage. handling and carrying of spot cotton. n
 .'The farmers and merchants of the south in the past twenty-five years have achieved magnificent results against over whelming odds There Is every reason to