The herald and news. [volume] (Newberry S.C.) 1903-1937, 1911-11-24
MILLIONS FOR RELIEF
OF COTTON FARMERS
NEW YORK BANKERS JOIN FIGHT
FOR HIGHER PRICES.
Plan Endorsed by E. J. Xatson.-Fi'
nanciers Offer Fund of Fifty
Millions.

New York, November 21.-NeW York
bankers, who have been in conference
here for the last few days with repre-
sentatiyes of the Southern Cotton con-
gress, said today that they proposed
to raise a fund of S5e,000,000 to be
placed in the cotton States for the
purpose of handling the cotton crop
of 1911 and enabling growers % par
ticipate in any rise r. the market!
TIE neyjt: ;liols %ore colG ;c--el cn
behalf of the South by Governor En-
met O'Neal, 81 :''abAl2G: Senator
Bailey, of TeAas. v'i?o has been advis-
ing his colleagues as to the legal as
poets of the proposition; E. J. Watson
president of the permanent Southern
Cotton congress and commissioner of
agriculture of South Carolina, and
Clarence Ousiey, of Fort Worth, Tex
as, representing the governor of his
State.
Backed by Big Banks.
The bankers, who will furnish the
fund according to the statement, are
headed by Col. Robert NJ. Thompson.
of the brokerage firm of S. H. Pell &
Co., of this city. The financial sup
port of several of the strongest banks
in New York has heen given to the
plan, the statements continues.
The plan proposes to advance the
grower $25 per bale upon his cotton,
based on the market value at the time
of the loan. No interest will be paid
upon the loan, the only charge being
81 bale, which is regarded as legi-
innate minimum charge for expense
of grading and handling. The cotton
is not held, nor taken from the chan
nels cf trade, but is placed at the best
advantage. The grower is given the
right to designate the day of sale,
price to January l, 1913, and will par
ticipate in any advance in price to the
extent of three-fourths of the rise of
the market. 4 tWEs
Through State Committees.
Details of the plan are yet to be
worked out. 1t has been decided, how
ever, to distribute the fund through
State committees, named by the gov
ernor or commissioner of agriculture
of State, and these committees shall
be empowered to sell when cotton
reaches y cents and compelled to sell
when: it reaches 13 cents, regardless
of advice from the growers. Provision
against any violation of the Sherman
antitrust law is contained, the pro-
moters believe, in clause empower
ing each committee to name the day
OF sale in event the market climbs to
II or 13 cents.
Following is the announcement of
the plan, issued after today's confer
ence:
Announcement of Plan.
"The announcement was made here
today, following conferences that have
been in progress for several days be-
tween promiE ont bankers of New
York and leading representative of
the South, such as Governor O'Neal,
OF Alabama; Clarence Ousley, repre-
senting Governor ColQuitt, of Texas,
and E. J. Watson, president of the
permanent Southern Cotton congress-.
and commissioner of agriculture of
South Carolina, that proposition has
been presented to these gentlemen,
representing, respectively, the gov
'ernors' conference and the cotton
congress, composed of producers and
business men and bankers of the
South, which means the placing in the
cotton belt States of about s5O, 900
Immediately for the handling of the
cotton crop Of 1911.
In other words, the proposition is
to give the farmers s25 per bale ad-
vance on MS cotton, without interest,
charging him only 81 per bale to cov-
er expenses of grading and handling;
letting him turn over the cotton to
the holders, who will advance him
SIS per bale and give him the oppor-
tunity to designate the date of the
sale, prior to January 1, 1913, and to
participate in any advance in price
to the extent of three-fourths of the
rise in the market.
Farmer Has Nothing to Lose.
s*It is calculated that by the present
ordinary holding prices the farmer
takes all the chances of the rise in