The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-20
Matter OF Warehouse.

goods taken at times and at prices which
are not of his choosing
Matter of Warehouses.
1T is of this matter of warehouses
that 1 am asked TO speak to you today
and briefly 1 will reiterate figures used
many times before, but which can not be
impressed TOO often, since only in the
understanding of the importance of these
facts can come the state of mind i'll our
people that Will produce the energy neces-
sary to the Accomplishment of first class
warehouses. At the first cotton conven-
ton in New Orleans l was a member OF
the committee on Warehousing, which
made d report to your body at that time.
THE figures then presented with one
exception, are no less true now and |
therefore, repeat them. The one exeep-
ton is that then we considered .OS cents
for a twelve million 02,O00.000) bale crop of
cotton possibly an average; the price in
January that year being .06 cents. Today
after two years work we have seen. not
only the balance of that great crop OF
thirteen and one-half million bales sold
al prices in the neiShborhood of 10 cents,
but two large crops raised since, SELL
ing at an average of above 10 cents for
white cotton. Taking our crop as twelve
million Q20O0. 009) bales and the price at
10 cents we have a commodity of $780,,
100000. If we store one-half of this cot
ton for an average of six months, under
the present costs of insurance and lack
of storage the cost for those two items
would be about 500 per bale or 1921 o0OOO,
600. The present average insurance at all
warehouses in the south Is slightly more
that three per cent per annum or $l50
per bale. The cost of storage will average
about 20 cents per bale per month or
81 40 per year. The average price of
money, outside of large centers, on cot
ton in warehouses is hardly less than
s per cent or a cost on $4,000 cotton of
$500 per bale per year or about 80 cents
per bale per month.
Exports Each Year.
There are exported eacn year about
eight million (S,0J0,00O) bales OF cotton on
which country damage insurance has to
be paid at a cost oil some u cents per
bale or total of $SOO,0J0. There are
left exposed on tine platforms and farms
and in improper warehouses some three
million (30O0,00o bales OF cotton each year
which are more or less damaged and have
to be picked at a loss OF not less than
$500 per bale, thus producing a loss of
$6,000,0O0. All these excessive losses as
well as tie insurance against same comes
out of the net price which the cotton
brings to the producer, therefore the saw
ing in any OF these makes the net price
that much higher and the farmer that
much more prosperous.
with up TO date warehouses, properly
run, except in times of extreme String
ency, money can be secured at g per
cent or less. The insurance in properly
sprinkled wareho uses, instead of being
$1.50 per bale per year or on the method
of short rates, 30 cents per bale per
month, can pe secured at not exceeding
cents per bale per month and storage
can be had for Is cents per bale per
instead of leaving cotton exposed on plat
form or on the farms, the necessity for
country damage insurance on export cot
ton would not exist and there would not
be the damage to cotton left on the farms
aud which has TO be picked as noted
above. The saving in fire insurance stor-
age charges, coun cry damage, and insur-
ance against country damage by having
first class warehouses, 1t is readily seen
from the above figures would be each
year about $l3, 900, coo. Warehouses, correct
in every particular, can be built at cost
of about $3.50 per compressed bale of
storage capacity, thus warehouses that
would store, say one-half the cotton crop
or six million bales 0,000, 600, could be
built for 81 ,000, 600, and would produce a
saving each year in the storing and
handling of the crop of approximately
S13, 100000. To put it in another way, these
warehouses would pay for all repairs. the
cost of operating, interest on investment
and furnish enough profit on the basis of
present costs to pay for themselves in
two years. What is true of the general
proposition is true of the community and
it is on this basis that success is finally
to come. Each community or district
must look after it's own cotton methods
and protection. The dream of splendid
warehouses all through the south is to be
a realization through the building of one
at time Speaking of dreams, reminds
me forecefully of the fact that no great
undertakings have ever been begun, or no
great reform accomplished except there
was some man to first dream of them and
be laughed at by his fellows This cot
ton association and the work it has done
has been, by some, considered chimeric
dream. Some of you may still consider
the establishment of first class ware
houses all over this country a dream, even
though in the past two years, since the
idea was first Suggested by this ASSOC
citation at New Orleans, we have, tre-
mendously improved our methods and
while Birmingham built the first one of
these warehouses, which is, believe, the
most complete in its protection. other
cities, such as Augusta Montgomery. At
lanta. Memphis, either have built or are
building warehouses in which such pro-
lection is furnished that the insurance
is very low and the total cost of car
riage reasonable.
Warehouse Idea Not New.
This warehouse idea is not a new one,
our very earliest history teaches us that
the people of that time recognized the
Importance of warehouses. Another pc
culiarity is that it was a dreamer who
first suggested and built warehouses. The
bible tells us that Joseph, in the land of
Egypt had a dream; he saw the wheat
shocks in the fields. All the land was in
plenty He dreamed again and saw bare
and barren fields and people going hungry
through them and begging piteously for
bread This dream produced an idea; the
idea was to gather into store houses the