Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-01-29
THE BIRMINGHAM CONVENTION.
Mr.. e. o. Smith Talks Interestingly Of
the Outlook.

the Outlook.
Mr. l.. d. Smith, president of the
South Carolina Cotton association. has
given out the following statement with
reference to the recent cotton conven-
ton held in Birmingham:
THE Birmingham convention was
by odds the best convention ever held
by the Southern Cotton association.
The practical results OF the convention
itself, the subjects discussed, the new
plan Of campaign and organization
adopted will appeal to the people Of
the south as favorably, l am sure, as
/ 1t appealed to the members Of the con-
vention. The enthusiasm was as great
or greater than that manifested at any
meeting yet. The experience OF two
years has taught the members and Of
ticials to temperate all with the wis.,
dom Of experience and to reduce all
other enthusiasm to practical ends.
1.-The first and greatest considera-
ton, and one to which everything else
was made subservient, was to solve
the problem Of how to benefit the
members of the association more than
those who were not members, and to
help the weak man who was unable to
help himself. These two problems
| were the two to which the convention
addressed itself. We recognized the
| fact that one drawback to organiZa-
| tion was that under our present plan
the man outside of the organization
really got more benefit from the ef-
forts and sacrifices OF the man inside
than the men inside got themselves.
We also recognized that the cotton
that hurt the market was the cotton
encountered with debt, which had to be
sold regardless of what the'price was,
| to meet debt that was upon 1t. Now,
| the question was how could we devise
plan by which we could offer special
inducements to the owners and grow
ers OF cotton to join the organization,
and to show how 1t would be Of per-
sonal benefit to them rather than be
outside. Next, how to formulate q
practical business plan by which the
poor fellow who owed money against
his cotton and was forced to realize on
II to meet his obligation, how we
could help him, by our organization
/ to hold without damage to himself and
/ receive the benefits OF the organiZa-
ton. l think the convention, by the
| plan adopted, IL our people Will take
hold and push It, has given to the
public plans whereby these two diff
culties may be overcome. In the first
place, we have ordered properly
once our charter, making us a legal
organization; and under this charter
i we want every county In the cotton
/ growing states to meet and organize
their holding companies; open books
/ of subscription for the purpose ol
raising, II possible, at least IS per bale
on all cotton grown In that county; to
elect a board Of directors and presi-
dent who shall select some man, eth.
er from among their number or 9TH
erwise, who shall become the buying
and selling agent for that organiZa-
| ton, who shall negotiate all loans,
| who shall have supervision of all ware
i housing, and 10 whom can be given
the power Of attorney to dispose of the
| cotton placed under his supervision
i In other words he Is to become the
agent of that division to receive cot.
/ ton, to supervise the buying of what
cotton the organization buys, to pro.
cure adequate warehouse room ano
with the national officers and local Of
| ficers Of similar county division:
throughout the south, to negotiate
loans on whatever cotton Is held by
him upon which loans are requested
i Under this plan a member Of the
Southern Cotton association can carry
| his cotton to his local company, turr
It over into their hands, receive a GER
tificate Of ownership, and give to this
/ company the power to sell that cotton
provided IL Is not sold below a price
agreed upon by the national organiza.
I ton. This price, II enough countie:
in the south enter into 1t, shall be
made net to the grower. If, for In.
stance. the price agreed upon Is IL
cents a pound. middling, and l carry
my cotton to my local organization
L N
store It, a price will be fixed upon thai
cotton sufficiently above 10 cents to
| pay for the insurance and storage and
/ the expenses attached-such as sala-
ries of officers, interest on money, etc.
and the buyer pays this. There was
an enthusiastic adoption Of this plan
and a careful study of 1t will reveal
the force Of It. We were assured thai
there was sufficient capital, both a,
home and elsewhere, to finance all the
cotton that needed financing, provided
we concentrate 1t In such forms as to
make II available for financing. Again
these local companies will report daily
or weekly to the state Office how many
bales, the grades, and whatever infor.
nation Is necessary, and the mills and
buyers, when they desire cotton, car
come to our state officials, place theil
order for the number Of bales and
grades that they want and these orders
will be placed with our local ware.
house and the cotton will be delivered
to the purchaser direct by us. This
will eliminate the present great army
Of local buyers, brokers and mill mer
and put us I'm a position to fix and
maintain a stable price, and enable
the mills to place orders with those
who have the actual stuff, and have
L t., ot, Nd IN, or q 4.
us that they can place their orders
for twelve months ahead Of the actual
cotton in our warehouses. Mill mer
tell me, and have no right to doubt
their word. that they would welcome
such a plan as the above. Instead OF
e.. having to go to brokers and specula.
| tors and place their orders, as they
do now, and be dependent upon the
rise and fall of the market as controll-
ed by these spectators, for their cot
ton. that they would rather come and
buy cotton direct from the man who
owns II and let our organization store
1t and insure and charge interest or
1t. but have a fixed carrying charge
for each month, than to have to be al
| the mercy Of the present system, un-
der which they never know one day
what their next days purchase Is go
| ing to cost them. I have been assur-
| ed-and have no reason to doubt it
that mills making certain quality of
goods today could pay much higher
prices than they are now paying and
also make money. But. In view Of the
fact that they have no guarantee what
cotton will do from day to day, in or
| der to meet the contingency of the
market. they ar" forced - buy thelf
cotton as cheaply as possible in order
| to have as large a margin as possible
| to meet the violent fluctuations Of the
trade. This plan will enable the poor
man to get the same rate Of interest
as the well-to-do; to get the same
warehouse facilities; to get the same
price as the best posted. and will also
furnish sufficient capital to take up
what cotton Is floating on the market
from day to day. at a price less than
the minimum price set by the associa-
| ton.
Details of Plan.
| EARLY as possible pamphlets will be
printed setting forth the details more
perfectly and particularly than this ar
ticle has done, and each county will be
asked to perfect it's organization as
soon as possible, so as to get ready for
the balance Of this crop, II possible,
and certainly to be in a position for