The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-12-30
MAY BE THE SOLUTION.
wade Stackhousc Explains Plans of
the Cooperative Cotton Company
States Must Join.
Te the Editor Of The State.

cotton problem? 1 think so, if cotton
farmers will determine to solve if
through self-help. They can do this
by subscribing cotton at 10 cents yer
pound to the Cooperative Cotton COM
pany. The charter of this COMPANY
contains all the best features of the
cooperative societies Of Europe. The
capital Of the company can be used
only to finance cotton, cottonseed and
their products for stockholders of the
association. Its plan is to retire 2,OOO.-
700 bales of the surplus of this crop
as the capital stock Of the company,
and this is to be held for a minimum
price Of 10 cents per pound. AS
soon as 10000 bales of cotton are sub
scribed, representing a capital stock
of $1,O00,000, the company is to Sc
cure charter and begin business.
The cotton congress Of South Caro-
lima has merged into the Southern
Cotton association, and we stand
pledged to endeavor to secure at least
10000 bales of cotton in this State.
The farmers and merchants of South
Carolina are today holding more than
100000 bales of cotton which has an
average value Of about 1-2 cents per
pound. We feel confident that they
will subscribe at least 10000 bales of
this or only 2 IL per cent. of it to
put the company into operation.
Theobjects Of the company are:
To stabilize the value of cotton.
To own, lease or operate cotton
warehouses and to handle warehouse
receipts for its stockholders. 1t is
confidently believed if we had only
100000 Of capital in the South
Carolina division that we can secure
loans on at least four bales Of cotton
to each one pledged the company. If
a farmer having ten bales Of cotton
pledges two bales to the capital of
the company, it is believed we can Sc
cure a reasonable loan on the eight
bales he holds and help him to
finance it till the war is over. If this
can be done I believe the eight bales
kept will be worth more money than
the ten bales under existing condi-
tions. By cooperating with other
farmers, he will make his 500 stock
in the company without costing him,
a cent and will provide help for all
times Of depression in the future.
To buy, sell or handle on commits
sion cottonseed and cottonseed prod
ucts for its stockholders and others
and to make loans on same.
To buy. sell and handle on commits
sion cotton for it's shareholders and
others direct to domestic and foreign
spinners and to other parties desiring
to purchase the same.
The plan Of the company provides
that when the cotton is sold at least
so per cent. Of the money is to be
kept on deposit with banks in the
county where subscribed, and only
20 per cent. is to go into the general
treasury. In this way no county can
be drained Of it's resources. The par
value Of shares is $40 each, and any
person holding a share Of stock can
vote in the election of officers. No
person can have but one vote, regard
less of stock he may have. The char
ter provides that only 7 per cent.
dividend can be paid out annually,
the balance of earnings to go to sur
plus or to building warehouses or
other purposes for the general well
fare of cotton producers. The South
ern Cotton association is acting as
agent to secure the capital stock Of
the company. When $1,000,000 stock
has been subscribed a meeting is held
in each county where shareholders
live. and they elect a delegate to a
State meeting where they select a
member of the governing board,
which can not exceed 33 members,
and no State can have more than
three members. This governing board
will meet at the city selected as head
quarters of the company and elect the
officers who will conduct the business.
Some of the best financiers of New
York and other money centres have
looked into the charter and plans of
the company, and say it is feasible.
desirable and practical. 1t offers the
only practical plan Of self-help that
has been proposed. If we only get
s1,00O.O00 each from the cotton
States this season it will be we'll worth
the effort. When the full au-
thorized capital has been paid in, this
company can do all that we have
asked the national or State govern
ments to do for us. From the time
We start, the financial world will re-