The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1914-03-27
DISCUSS CONTROL
WAREHOUSE PLAN
The New Manufacturers Record
Gives A Survey From Its
First Conception
Manufacturers, Record.

linas within the past few DAYS and the
appointment OF committee OF organ
lZation representative Of the cotton
| interests with a view to working out
the details Of a comprehensive cotton
waTchousing system for the south are
the promise OF definite step forward
In the plan which has been considered
! Tor nearly twenty years and which has
been put into execution at several i'm
pOrtant points.
J II Is nOped that the present project
may take permanent form at the time
of the annual convention OF the Amer
lean Cotton Manufacturers Associa-
ton i'll New York next month II was
outlined at an informal gathering last
week at Charlotte, when J. B Duke OF
New FORK met a number of leading
cotton manufacturers. II looks to the
formation OF a cooperative body own
| ing chain of warehouses for tie ben
eft Of farmers, merchants and manu-
facturcrs and utilizing available ex-
! listing warehouses and other facilities.
| This warchousing system will involve
: the receipt. the weighing, sampling.
grading and insured storage of bales
of cotton, the insurance of warehouse
receipts for them. a'system of sealing,
inspecting and auditing and n certi-
cation of the warehouse receipts by
banking interests of such standing
as to guarantee tho integrity and
quality of the collateral represented
by the receipt, the WHOLE system to
be under board OF directors and
managing officers chosdn from bank
ing and financial centcrs entirely i-cm
, connection or alliance with the users
of the warehouse.
Not "a New Idea.
Just about ten years ago. while
the growing realization in the south
that everybody concerned would be
benefited by proper financing of
the great staple, the plan of tilc
| warehouse system was widely dis
cussed. At that time Col T. G. Bush
of Birmingham a leader in manufac-
turing and finance in the south, wrote
J to the Manufacturers Record ds icl-
lows:
There is but one solution, I think,
of this trouble, and that is 6&Sstrong
ssytem of warehouses at a Number of
points in the south, accessibEato the
planter. In which he can sure his
cotton on reasonable terms and Sc
cure a receipt that is SO proteeted by
a strong guarantee or bonding COM
pany as to enable him TO useSit as 4
I, collateral securing the lowesttFeason
able rate of interest. Aisystem like
this is. not only valuable III 8hesf farmer
Protesting him SO that IA Ssintassgell as
his judgment. mllN dictHte, nut it is
helpful to the spinner enabling him
to carry his stock inSsuch a way as to
avoid unnecessary risk on the market
and without excessive rateFof inter
est. That some plan of this kind will
and must be adopted. do not doubt.
and the sooner 1t isstaken hold of by
parties capable and strong enough fl
nancially to carry 1t out, the better
Ii will be for all concerned + believe
that a. many points local interest
would promptly cooperate with other
parties in establishing a warehouse
system OF this kind.
About the same time and dealing
with the same subject, ID. A. Tompkins
OF Charlotte, contended that it ls not
in the ineterst of the Sonthorn farm-
er or of the growing states
to undertake to maintain cotton at so
high price as to stimulate large pro-
duction in other countries. that fair
average price will hold the monopoly
OF cotton growing in the United States
and that corporation should be
formed with sufficient capital and
large enough Held OF operation to ac-
complish average results upon the
principle underlying Insurance. He
argued that the plan would eliminate
the spectacular and would vastly ben
eft farmers, merchants and the con-
sumers.
1t is interesting TO recall that more
than sixty years ago the Cotton Plant
ers' convention at Tallahassee, Fla,
urged as j remedy for the difficulties
of cotton growers the chartering by
the states OF South Carolina, Georgia,
Louisiana, Alabama and Florida Of a
corporation with q minimum capital
OF $20,000,000, to be increased as bust
ness occasion requires, TO erect or to
purchase extensive cotton warehouses
at Charleston, Mobile, New Orleans.
Appalachicola and St Marks. That
was in 1851, and although success has
been gained in several forms Of mod
ification of the plan, It has never been
carried out within the full range or
It's possibilities. Therefore, millions
OF persons will await with interest
the outcome OF the present movement,
which Is designed to enable grower
to store and hold his cotton in safe
~ and the cheapest rate of interest
when the market price. ia not salts
factory to him, to enable the cotton
merchant and broker 10 obtain at rea-
sonable rates the money to make his
purchases and to carry them, and to
enable the manufacturer TO assure
himself of his years supply or the,
staple according to his own Judgment.
A cotton werehouse eysten1 OF this
kind operating over the whole state
Incorporated with itself, existing fa-