Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-04-06
SULLY REEVES
WAREHOUSE PLAN
SAYS HE CAN GET SIO,OOO,OOO
FINANCIAL BACKING FOR 1T
IF FARMERS AND BUSINESS
MEN COOPERATE.

Daniel ]. SulIy, the famous cotton bull
who once boosted the price to seventeen
cents, the highest since the war, in an in
terview announces a new warehouse plan,
which he says will be backed by $4,000, 900,
and will save the farmers of the SOUTH
and incidentally allied business interests,
$150, 0O0, 900 to $2O0O00,000.
Mr.. Sullys plan is not new one, as he
frankly admits 1t is the bonded ware
house plan, adopted by various farmers
organizations, but never carried out, he
says, because of lack of big enough finan
cial resources.
He says that $1OO0O.O0O of capital is
ready and waiting to back the enterprise,
and that southern interests are not ex-
pected to contribute cent until they are
shown conclusively that the warehouses
have the soundest of financial backing.
The plan is to issue certificates for cot
ton, upon which the farmer is at liberty
to make loans, depositing his cotton in the
warehouse as security, and holding 1t or
selling at a good price as he chooses. Mr..
Sully says:
Outlines Plan
1.-The backbone of the plan is a chain OF
bonded warehouses throughout the south
sufficient in number and capacity to house
one-third of the crop, and that one-thlrd,
as has been demonstrated, will be the bal
ance of power which will render market
posal of the crop in strict conformity with
the laws of supply and demand.
mo farmer will sacrifice or surrender
the title to his cotton under this plan.
Say that he produces one bale of cot
ton. Under present conditions, the vast
majority of southern planters have al
ready heavily mortgaged that bale to Sc
cure the funds for it's production.
His creditors press upon him for settle
ment. In only exceptional instances is he
able to withstand the pressure. AS an
overwhelming rule, he is forced to sell his
cotton the moment II leaves the ginnery.
i. 1.-The same situation prevailing in every
southern state, it follows that the bulk of
the crop, instead of following natural bus
mess laws and being marketed over the
legitimate period Of barter and sale and
consumption, is dumped upon the market
in big lots.
1.-THE inevitable result is that the mark
ct price says, congestion ensues and the
individual who cannot afford to hold of
his creditors sells his cotton at a loss.
Certificates Issued
Now go back to the individual farmer
we were using for purposes of illustration.
He deposits his bale in a warehouse that
is bonded and absolutely as responsible 10
the commercial world as is a surety COM
pany or an insurance corporation.
HE accepts for this bale certificate
certifying to his ownership of the cotton.
1.-The backing of a reserve of millions of
dollars, and of all the stockholders, is
back of that certificate.
"It will be as fully protected as United
States currency.
"It represents the highest possible ella IS
of collaterals for loans.
with the security thus outlined sup
porting it, he will have no trouble what
ever in borrowing enough from his Banker
to meet his pressing Indebtedness. holding
his cotton in the warehouse until such
/ time as it can be marketed at a pricc
commensurate with its ultimate value to
| the business world"