The Montgomery advertiser., 1907-06-07
COTTON. WAREHOUSE
ADDRESS ON SUBJECT BY w. ID.
 NESBIT OF BIRMINGHAM.
Committec of Five Named to Investi- gate and Take Definite Action on
 scheme Advocated by MT. Nesbit.

As result of the meeting of the pusiness men of the city and an ad- dress by W. D. Nesbit of Birmin gham at the City Hall yesterday afternoon. A movement was started to systematize the warehousing of cotton in Mont as the certificate plan
 committee of a banker, a merchant. Warehouseman, cotton buyer and A farmer was named to investigate and take definite action on the plan out lined by MT. Nesbit, and which favor ably Impressed the attendants at the meeting yesterday.
 The committee to investigate fur ther and to have the movement in charge was named as follows A. M. Baldwin. J. H. Hardaway, E. Well, Meyer Greil and Charles L. Gay
 The meeting was attended by a con siderable number of prominent busi- ness men of the city, all of whom were interested in the cotton business one way or the other. Commissioner of Agriculture U. A. Wilkinson presided at the meeting and introduced Mir. Nes- bit
 MT. Nesbit is an associate member of the Alabama Railroad Commission. MT. Nesbft is one of the leading cot ton men of Birmingham. In his speech, he announced that he was con- ducting his warehouse according to the system which he was advocating,
 The address was more of a direct business talk than a public speech. The proceedings were informal and the speaker invited questions to make clear all features of the certificate plan. Mr. Nesbit. in beginning, em- phasized the careless way in which cotton was handled from its ginning to It's delivery to the foreign spinners.
 .l.2 based an estimate that the South un- necessarily lost $12,000.0o0 annually In the marketing of the cotton crop. Most of this, however, was in the handling of each bale from the farmer to the spinner.He estimated that in the handling, outside of freight rates, each bale costs 50 cents. This cost could not be removed, but it could be reduced.
 The chief saving in the plan he ad- vocated. however, would be in the in- surance. He spoke particularly of the insurance required blythe foreign spin ners on account of the careless way in which the cotton was packed and stored until foreign shipment. He ex- piained the system of fireproof ware houses which had been endorsed by the fire underwriters and under which they granted a lower rate. The first provision of the plan called for the construction of such a warehouse.
 The next and the most important feature of the plan was the issuance of a certificate which should have a defl- mite character and backing to make 1t good. The certificate of this sort could be listed on the spot cotton ex- change and bids asked for, as pig iron Is sold. The certificates, of, course, make certain provision for loss of weight for certain lengths of time.
 guaranty company should be or- ganized, embracing whatever ware houses of this character cared to enter into the plan. The assets and power of the guarante company would be the assurance that the purchases of a cer- tifcate would get s1l that he bought.
 In reply to a question MT. Nesbit stated that the company should have a paid-in capital stock of at least $250,- 900. Under the plan, the certificates would have a fixed, definite market value and would be the best of collat- eral.
 Charles L. Gay, a well-known plant CT of Montgomery County. when Mir. Nesbit had concluded, spoke in favor of the plan so far as he understood 1t. It occurred to him that the plan had its advantages. not only for the ware- houseman, but for the farmer as well. He thought it ought to be investigated, and if the investigation showed 1t feasible, 1t ought to be adopted. To get some action on the matter he moved the naming of the committee of five.
 The committee of five was named by Chairman Wilkinson after confer ring with Mir. Gay and MT. Roman.