The Union times. [volume] (Union, S.C.) 1894-1918, 1914-04-03
A GIGANTIC COTTON
WAREHOUSE PLAN.
This Movement is Now Being Dis
cussed in All Parts of the South.
What Will Farmers Do
About 1t?

clarence Poe in Progressive Fan mer)
A gigantic cotton warehousing plan
that may revolutionize some phases
of the cotton industry is now under
discussion in all parts of the South,
the movement having begun in meet
ings held in North and South Caro-
lima last week.
Briefly put, the plan (Which origl-
mated with Mr.. J. B. Duke and has
the backing of other New York mil
lionaire capitalists) embraces the fol-
lowing features, according to the re-
ports we have received:
|. The organization of a great sys-
TEN of federated cotton warehouses,
extending throughout the cotton
belt, for the joint use of farmers,
manufacturers and bankers.
=. The organization to have a capi-
talization of $5,0OO,OOO farmers, man
ufacturers and bankers being equal
ly free to take stock.
3, Existing warehouses, when prac-
ticable, to be leased or bought at a
fair valuation by the new national
corporation, and new warehouses
built, so as to give a combined stor-
age capacity of 100000 bales of
cotton.
a. A thoroughly controlled system
of scientific grading to be in force
so that the warehouses receipt for
cotton of any given grade will be ac-
cepted without question anywhere.
the certificate having the guarantee
of the general organization behind
1t as to weight and grade.
b. Money to be loaned farmers for
five-siXths of the market value of cot
ton at an interest rate of about four
per cent per annum.
3. "A committee consisting of six
manufacturers, six farmers, two
bankers and two merchants to COM
plete the organization.
Ihls, IN brief, is the proposition as
given out by its promoters, who also
make the following additional decla-
ration:
The plan proposed is such that
the farmer will be enabled to store
and hold his cotton at the cheapest
rates OF interest if the market price
is not satisfactory to him; the cot
ton merchant and broker will be able
to- get abundance of cheap money
with which to make and carry his
purchases; and the manufacturer will
be able to select his time for buying
and then to store and hold as much
OF his years supply as his Judgment
dictates-all benefited equally and
alike by the use of as cheap money
as can be had by anybody, and any
where in the world"
The secret of the plan, as one man.
ufacturer on the committee assures
us, is simple. Cotton" he saws. "is
just naturally the best collateral in
the world and farmers and manufac-
turers ought to be able to borrow
on it at the very lowest rates of in
terest. given anybody on earth. But
this is impossible without general
OF garization which will ,:raranrec
grades and weights and the safety
OF the stored cotton. / believe we
can lend money to within $lO OF the
value OF bale and at rates of abou.
three per cent"
The plan evidently has MANY ad-
vantages, ard the chief reason which
Will make the average farmer hesi-
tate II expressing an opinion abou.
it is that the idea is fatherei by
Mr.. j. B. Duke, of the American To-
bacco company But, on the other
hand, it is argued that Mr.. Duke has
a gigantic fortune and is simply will |
ing to invest part of it now in great
plan for the South's upbuilding with |
out expecting to reap any undue pro-
fits individually and without resery-
ing any unfair powers for himself. |
Moreover, 1T is argued that the farm
or Will keep the whip hand and that |
if it doesn't pay him to put his cot on !
into the ware houses he needn't do it. |
AS for The Progressive Farme.s'
view. we feel that the idea has tie
n.endous possibilities, and if we en-
only see that the farmers interes
are thoroughly safeguarded, it shoud
be of great benefit to all concernel.
From President f. w. Dabbs, SOut