The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-04-16
viii Avoid Futures and Deal
Purely in Acturd Cotton
Stored in Warehouses
WARRANT RECEIPTS WILL
Be THE BASIS FOR TRADING
VIII Make Birmingham Center of Cot
ton Trading In the South and Prob
ably Bring Associations
Headquarters Here.

A plan was inaugurated yesterday for
the establishment of a cotton exchange
in Birmingham, where cotton can be
bought and sold on warehouse warrants.
1t is the beginning of what those inter-
ested in the movement believe will be one
of the biggest things in the south.
A call has been issued for a meeting to
be held at the Commercial club in Bir-
mingham on Tuesday, April %, to con-
slider the plan. The call is signed by
prominent men in all lines of business,
bankers, merchants, cotton men and 9TH
ers.
The proposed exchange is a departure
from the system of conducting other ex-
changes, as all the cotton bought and sold
will be actually owned and every warrant
will represent bales of cotton of specNc
size and grade which are stored in one of
the warrant warehouses, or any ware
house that will abide by the rules gov
erning the exchange
The plan is not being put into opera
ton in connection with the movement to
bring the headquarters of the Southern
Cotton association to Birmingham, but
it would probably have tendency to
bring the headquarters here. 1t is the
outgrowth of suggestions arising as re-
suit of the holding of the Southern Cot
ton association convention, and of the
numerous suggestions made at this con-
vention and conferences which followed it.
The last of these conferences was held
last Saturday in Birmingham, and the let
&c t1,o
direct result of that conference.
A copy of the letter is as follows:
1.-THE undersigned, representing, as we
do all branches of the cotton producing,
handling and consuming business, having
considered carefully a plan for the stor-
ing, certification, buying and selling of
spot cotton, with Birmingham as the
central point around which such business
from a very wide territory might be
gathered under conditions helpful to all
interests, have decided that the plan sug
gested is practical, feasible and at this
time much needed in bringing about the
long desired, better and cheaper handling
OF our cotton crop.
'"The plan contemplates the organiza-
ton of cotton exchange in Birmingham
which shall systematic and regulate the
dealings in warrants covering cotton of
specific grades accumulated at and stored
in warehouses at different points
throughout the cotton belt.
1.-THE dealing through this exchange con-
templates the buying and selling of ac-
tual cotton and is, therefore, an entire
departure from the present methods in
vogue on cotton exchanges of this coun-
try. The main object Is to furnish to
the consumer of cotton direct avenue
to the cotton of the producer, and to the
producer a direct avenue to the wide mar
kets of the total consuming world.
"Our judgment being unanimous that
this plan should be undertaken, we have
called a meeting at the Commercial club
rooms in Birmingham on Tuesday, April
%, at o'clock to consider this plan and
of the judgment of this meeting comedies
with ours, to devise ways and means to
at once put the undertaking on its feet.
"At the meeting will be represented the
cotton mills of the safe, bankers, mer-
chants, cotton buyers, warehousemen and
farmers. We hope that you will attend
and ask that you advise w. D. Nesbitt,
room 1901 Brown-Marx building, If you
will be present. Very respectfully.
wv P. G. Harding, G. w. Pratt, Eugene
Enslen, John w. Knight, Richard Cheat
ham, c. A. Steifelmeyer, w. s. Brown,
John w. Wade, w. d. Nesbitt, e. +.
Buchelle, r. H. Gilbert, w. NJ. Drennen,
Harvie Jordan and T. W. Mitchell"
One of the men who has taken an ac-
tive interest In the movement and done
much towards working out the details
yesterday discussed the plans and what
they would mean, saying:
This Is a plan which can be made the
greatest thing In the south, and II 1t is
successfully established and carried
through will undoubtedly be the biggest
thing for Birmingham that has happened
in a long time.
'gThe establishment of this exchange
will be of vast benefit to Birmingham. If
carried out as we plan and If we reach
out far enough 1t will mean that Birming-
ham will be the center of an immense
system, and the cotton men, mill men
farmers and persons seeking to buy or
sell cotton will be enabled to come to
birmingham or have their representatives
here.
"Other cities will have to establish ex-
changes Of their own, of which Birming-
ham could be the center, or II they do
not grasp the idea and establish ex-
changes Birmingham could control the
business even so far away as Texas II
we can reach out there.
This plan will have many advantages.
It II does nothing else than guarantee
a weight and grade between the seller
and the purchaser, thus insuring both