The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-12-02
FINANCING GRAIN CROP,
AGKlCCLTURALIS SMITH TALKS
or ELEVATORS,
Expert Describes Conditions of Sue.
cess In Quantity Storage. Special
Railway Rates.

cess In Quantity Storage. Special
Railway Rates.
Columbia State.
One of the interesting features of
the grain campaign which has been
started In this State is the address by
"A. q. Smith to. the farmers. Mr..
smith not only is an authority on farm
management and is an agriculturalist
or distinction, but he is also a native
OF the corn belt, and having spent his
youth and having been educated there,
MS views on the question are dOubly
valuable. In reply to questions in a
number of towns he has said that
there is profit in corn, so proved by
the success of the Illinois farmers.
The farmer there gets an average of
90 to 60 cents bushel for his corn,
but he has no fertilizer bill to speak
or. However, he has but the one crop
a year, whereas the thrifty and indus
trious Southern farmer may produce
two crops of different kinds, the one
fertilizing the other. and each making
a profit.
The Western farmer on his corn
alone makes profit. When the price
OF corn occasionally runs too low for
him to make profit, he uses hogs as
side crop, and in this way insures
his profit, for the hogs fatten on the
grain on which there would be no
profit and there is good profit in hogs
In that manner.
When asked at several places about
the advisability of an elevator system
Mr.. Smith has stated that his idea is
than an elevator for the handling of
grain would be impracticable unless
the farmers in the contiguous territory
should agree to produce for the eleva-
tor 100000 bushels over and above
their own requirements. Very frankly,
Mr.. Smith stated that there is no de-
mand for elevators in every corner Of
the state and some places will take a
risk in building unless there is q def
mite understanding among the farm
ers to produce the grain. In some sec
tions 1t was reported that the farm
ers had said that they would plant If
they had a market, showing that
there Is no understanding between
them and the local dealers. Until
there Is some such understanding, said
Mr.. Smith. the proposition is danger
Gus.
Business men who are interested in
the elevator and milling proposition,
said Mr.. Smith. should go about the
matter just as Heinz would with refer
ence to establishing a pickle factory
in some place where there might be
an agitation for it. Heinz would be
fool to start a pickle factory where
there Is no raw material and where
there is no pledge from the surround
ing country to produce enough for the
plant TO work upon. Unless there is
a definite understanding between the
farmers and the owners, there might
be elevators and no grain. 1t Is just
the same thing as the starting Of
creameries, which have failed in some
sections because the farmers had not
pledged themselves to send their
cream to the plants to be converted
into butter. A grain elevator would
not be good investment or paying
proposition unless the basis of supply
was assured.
The financing of the proposition
should be done by the farmers, or
largely by them, for economic and
other reasons. In his section of the
country. said Mr.. Smith, there are
four Of these elevators within six miles
OF his home. And he has learned
that another one is being put up by
the firm represented by Mr.. Strattan,
who has been making the grain cam
paign with Commissioner Watson's
party.
The plan advised is to form a COR
pOration with about $4,000 capital
stock, 120 shares at 500 each. No
orc is permitted to own more than
five shares and when u share at any
time is offered for sale, the transac-
ton is handled by the board of dircc-
tors, so that the property may not
gravitatc into the hands of the Gle
vator trust.
Frequently the company will get
the building proposition financed in
some way, as can be done here, and
let the farmers pay for their stock in
grain ut the end of the first season.
Some of the farmers Of the West are
not only making enough on their
crops to pay for the land but are also
paying for blocks of stock in clcva-
tors and milling companies with the