Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-10-22
COTTON IS KING THERE
Manchester's Factories Use
Much of American Product.
BUY WHEN PRICES ARE LOW
Association Formed to Get Rid OF the
Middleman.
CITY OWNS PUBLIC UTILITIES
Is the Home of Cooperative Trad
ing-Yearly Business Involves
Millions of Dollars.
BUY WHEN PRICES ARE LOW
CITY OWNS PUBLIC UTILITIES

/ Millions or OO11aTS.
BY WILLIAM F.. CURTIS.
Special Correspondence of The Star and the
| Chicago Record Herald
/ MANCHESTER. October H. 1905
The manufacturers of Manchester, who
consume vast amount Of American COT
ton are anxious to find some means by
which they can deal directly with the
planters and avoid the effects of specula-
ton and the commission that is now being
paid to the mddlemen. During the last
| twelve months 375o5S bales of American
cotton have been received at the docks OF
| the Manchester ship canal in that city.
And that is quite below the average. In
the year 1907 the receipts were 4o6,o34
bales; in 1906 they were 3SS. 773 bales, ana
| in 1905 they were 633, 044 bales, all receiV-
ed by direct steamers from the south At
lantic and gulf ports through the Man
chester ship canal. Last year 22l,W bales
| of Egyptian cotton came the same way.
| The variation in the imports Is caused
by the fiuctuation of prices. The manu-
| facturers take. advantage of low mar
ket to buy and store away cotton untll
| they need it.
Buy When Cotton Is Low.
| The entire amount of American cotton
used in Great Britain last last year was
| 3,215 900 bales; and in all Europe 7.5oOoOo
| bales. or considerably more than one-halt
| the total crop, which was 13.5OO,OOO bales.
The bulk OF the cotton shipped here
known as &C. /. F. cotton"-that is cot
ton bought by Lancashire merchants and
| spinnerS for direct delivery TO the mills
| Inese purchases are largely controlled by
market conditions and fluctuations OF
prices. If prices are high in America
and when there is a prospect of dull
market. the spinner usually prefers TO
buy what he needs from time to time IN
Liverpool, which is the greatest cotton
market in the world
\ large stock of cotton is kept, In store
| there so that a spinner can buy what he
wants. much or little, at any time, IN
what is known as the spot market. 10
ascertain the total amount consumed our,
| ing the year it would be necessary to add
| the purchases in Liverpool to the direct
receipts through the canal at Manchester.
| The merchants of Manchester have been
trying to make that city a spot market
| also, and already fair quantity OF cot
| ton is being shipped here for storage and
| spot sales. But the increase is slow not
| withstanding the fact that more than
| dollar a ton is saved by shipping direct
! through the canal instead of trans-Ship-
! ping at Liverpool. Last year more than
$4,000 was saved in freights and that
| amount might have been doubled II all
| the cotton consumed here had come
through the canal direct to the factories.
International Cotton Federation.
In order to bring the producers and
consumers together there have been three
conferences, and an international Cotton
Federation has been formed to promote
friendly relations. This organization Is
composed of the Cotton Growers Asso-
| citation Of the south, the American Cotton
| Manufacturers Association and similar
| organizations in England and other
European countries. A conference of
delegates from all these organizations
| was held at Bremen in 1906; second con-
ference at Atlanta in October, 1907. and
a third at Vienna, where nearly a hun
dred million spindles in nearly every
| country in Europe were represented, and
| there was an interchange Of ideas con-
| corning the best means of securing stable
prices and economy in trade. At the At
| lanta conference last year these reSOlu-
| lions were adopted:
BE 1t resolved, that the international
convention of cotton growers and manu-
facturers is of the opinion that by closer
great deal of the present expense in
handling cotton can be saved and the
evils attendant upon violent fluctuations
| of the market can be mttigated.
| This international convention is further
of the opinion that the extensions of the
warehouse system In the southern states
and the creation of selling offices will tend
| to bring about closer trade relations, and
! that they are. therefore, worthy or en-
couragement by both producer and spin
ner."
Manufacturer Is Friend of Producer.
The situation from the Manchester point
| of view was explained to me In this way:
Every manufacturer is the direct friend
| Of the producer. and under the free exer-
else of the law Of supply and demand
hopes to see the market sustained and ad-
vanced To have this demand for cotton
made an excuse for speculation, and met
with an artificial supply. Is. however,
antaKonistic to the interest OF the cotton
producer as we'll as to the manufacturer.
| 1t is a crime against the great army OF
planters throughout the southern part of
| is not the friend, but a dangerous enemy
| to the planter. He Is curse to the
south. What the planter. needs Is an
| open market. free from all speculative in
fuences and law to prevent fictitious
sales and purchases intended to advance
or lower the price without any intention
of delivery. A fair. steady price, even
though 1t be lower, is much more profit
! able TO the planter than the fuctuating
prices that have often occurred. Because
| then a planter knows what he is going
| to receive for his crop. and can rely upon
getting that price without being kicked
..
| The manufacturer suffers in the same
manner, and is often compelled to pay
the gamblers prices.
Hit the Middleman Hard.
What We want to accomplish is to
bring the spinners into the market place
and have them meet the planters there
and pay exactly what cotton is worth in
competitive buying. This principal should
| be established and the cotton Spectator
and the middleman should both be
| abolished.
| Neither the spinner nor the planter
| can fix prices: they will always be reg
ulated by the laws of supply and de-
mand, which is a natural and Il just
law. whether the planter gets S. 10 or
| II cents for his cotton. BIT the wild
| and unreasonable fluctuations caused
by gamblers on the cotton exchanges of
| Europe and the United States are I'M
fair to both the grower aid the SPIN
ner.
We are willing to admit that Il
/ legitimate middleman. to conduct
sales and shipments. is !. convenience
| If not a necessity. but we do not be-
lieve the growing AMI misunderstanding