The Birmingham age-herald., 1909-04-03
Daniel SuI4 Proposes Chain of Bonded Warehouses
 for Cotton Crop
FINANCIAL BACKING IS
 ABUNDANT FOR SCHEME
Minimum Fund of $1o,ooo,ooo Has AL ready Been Subscribed and sully Proposes to Handle Bulk
 of the Crop.

Atlanta. Ga, April 2.-"When the farm CTS of the south and the business men of the south say the word. funds will be immediately available in sufficient volume to forever place the great in- dustry of cotton production upon stable foundation, free from the chance fluctu- ations of the market, relieved of the at tacks of manipulators and leaving the gigantic crop monopoly of this section to respond, unembarrassed and unrestrict- ed, to the legitimate laws of supply and demand. The result should mean to the south an annual actual cash saw ing ranging from $l50,0OO,000 to $250OOo,0OO :" Tn these plain terms Daniel J. Suly. the man who drove cotton to its highest market price since the civil war, today outlined the purpose of his visit to At lanta and the southern states.
 Continuing MT. Sully said his plan con templates ''the creation of an impreg- uable business system which shall do away with the annual necessity of the farmer sacrificing millions of bales of cotton for pressing debts. congesting the market. hammering down prices, upsett- ing the reign of supply and demand and 
 sums that are it's due in return for the one crop indispensable for the needs of civilization.
 Good Financial Backing.
 sI do not ask one penny from the southern people. do not ask the pledging of one bale of cotton until I have given ample good faith of sufficient financial backing, from sources that are unques- tionable, to carry every detail of the plan into effect and to safeguard the interest of every farmer in the south, from the man who raises one bale to the man who raises a thousand bales.
 "A minimum fund of $1O,000,000 sub scribed by the most conservative finan- ciers of the United States is available to be invested in such iron clad secur- tiles as shall insure the ability and the responsibility of the plans promoters to redeem their promises and obligations to the last detail.
 'sThe people of the south will be given the first opportunity to invest in this project, if, upon rigid investigation, 1t commends itself to their judgment.
 "But it will become operative with the same rock ribbed backing if the south
 
 into it.
 Bonded Warehouses.
 .The backbone of the plan is chain of bonded warehouses throughout the south surricent in number and capacity to house one-third of the crop and that one-third, as has been demonstrated, will be the balance of power which will rem der marSset congestion impossible and in- sure the disposal of the crop ig strict conformity with the laws of supply and demand
 NO 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 all ready heavily mortgaged that bale to se- 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 it leaves the ginnery.
 Handling the Crop.
 "The same situation prevailing in every southern state, it follows that the bulk of the crop, instead of following natural business laws and being marketed over the legitimate period of barter and sale and consumption, is dumped upon the markets in big lots.
 1he inevitable result is that the mar ket price sags, congestion ensues, and the individual who cannot afford to hold off his creditors sells his cotton at a loss.
 This procedure is unbusiness-like, un- necessary and ruinously expensive to southern industry. The cotton crop, like every other crop, should be marketed only as 1t is needed. No manufacturer would think of selling his output in a short two or three months.
 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 to the commercial world as Is surety com pany or an insurance corporation
 .He accepts for this bale a certificate certifying to his ownership of the cot ton.
 Heavy Reserve Fund.
 "rhe backing of reserve of millions of dollars, and of all the stockholders, IS back of that certificate.
 Tt will be as fully protected as United States currency.
 With the security thus outlined sup porting 1t. he will have no trouble what ever in borrowing enough from his bank CT to meet his pressing indebtedness, hold ing his cotton in the warehouse until such time as tNcan be marketed at price commensurate with it's ultimate value to the business world.
 Tn borrowing this money he does not surrender the equity in his cotton. It is his to sell whenever he pleases, or to hold as long as he pleases, with the plain business exception that the certificate he may have used as collateral for loan is a prior lien upon the bale, which must be satisfied out of the sale of the bale when that culmniation is reached"
 The company would be paid a nominal fee for each bale of cotton handled. and in this way, MT. Sully figures, a fair orofit would be realized on the investment
 Weston Ahead of Hueston.
 Chicago, April 2.--Charles Weston took tha lead in the fortnight pool match for