The Washington herald., 1910-08-07
HOPES TO ESCAPE
THE SPECULATOR
Cotton Concern viii Buy at
First Hand.
WILL REvOLUT1oNIzE TRADE
Plans of S2O,OOO,OOO Corporation
Said to Contemplate Conditions
Similar to Those that Prevail In
Wooden Business-Seels to Improve
Distribution Of the Product.

Announcement comes from New York
that one OF the chief motives behind the
organization Of the International Cotton
Mills Association. which includes the
Consolidated Cotton Duck Company and
other similar concerns in the United
States and Canada, is 10 circumvent. If
rot to eliminate. the cotton Spectator.
For a twelvemonth or more the cotton
splnners OF this country have been at
the mercy OF the cotton broker and cotton
factor. The supply OF raw cotton has
been bought up in the South. sometimes
months in advance, manipulated through
speculative process. prices forced up alb
normally and the spinner compelled 10
buy at the price set by the Spectator.
Il is now proposed, through the re-
Gently organized concern with a capital
ization OF S20,OOQ0Oo. 10 buy cotton first
hand as the factor buys II, and If the
statement made in New York is correct
the new corporation Will inaugurate new
methods in handling cotton between the
plantation and the mill, 20 the advantage
Of both.
May Sidetrack Spectator.
Those conversant with the plans Of the
corporation say that the Spectator and
factor will be sidetracl<ed and practically
thrown out OF business It is claimed
that the corporation having control Of
the market. with cash to pay for the
staple, can deal directly with the pro-
ducers. thereby cutting out the army Of
who have fattened in past years upon
the grower and spinner. 1t IS said that
with the intermediate profits Of this
speculative class wiped out the law OF
supply and demand IN cotton will be al
lowed TO work more freely. and the
price Of raw fleece established some
where near a normal basis.
Managers OF the corporation declare
they seek 10 bring about conditions sim
ilar 10 those which prevail In the wooden
business through the operations OF the
American Wooden Trust: namely. buy in
bulk at first hand rather than from Job
bers and spectators IN the market
The wooden people now send men
thousands of miles. even into the bush
Of Australia, 70 buy the wool on the
backs OF sheep. thus eliminating all the
profts OF the spectators and middle
men.
VIII Change Distribution.
Another object Of the new corporation
IS to add to profits by the reduction Of
expenses in connection with the dis
trihution' of manufactured goods TO tho
consumer Now the mill sells its goods
TO a selling agent. who sells 70 a jobber.
who sells to the wholesaler, who sells
to the retailer. and he to the consumer.
AS each OF these men has to have his
profit, by the elimination OF several OF
them and dealing directly with the re-
taller, or at least the wholesaler. the
saving would be great.
Then. again, there would be the econ
omy effected IN Office forces ard the ad-
vantage from consolidation in other
branches OF the business. 1t is even pos
sible that the International Cotton Mills
Corporation will attempt 10 raise its own
supply Of raw material. though II is not
likely II will resort 10 this course until
all other means Of checking corners fail
The corporation owns over 5000 acres
OF cotton land in Alabama, which Is
planted 10 cotton, but leased 10 others.
1t is estimated that the mills in the COM
bination require at least 100000 bales OF
cotton annually. So II II IS decided 70
engage in cotton-growing fully $4,000 adj
ditional acres Of land would have TO be
acquired.
the raw material may be imagined when
it is stated that at the current quotation
about l6 cents a pound, or $50 a bale
the annual consumption entails an ex-
penditure Of 100000.