The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1914-09-03
Established 1891.
curity under this act"

warehouse bill, which has already
unanimously passed the senate, and
which will unquestionably pass the
house, being reported unanimously
favorable by the house committee on
agriculture, the term warehouse
is defined to mean every building,
compress, gin house, and other con-
structions in which any cotton is or
may be stored or held for or in course
of interstate or foreign commerce.
which means that mans own barn
or his own farm can be made fed
eral government bonded warehouse,
and Of course would cover the class
of warehouses that you refer to abb
solutely. OF course the act requires
that federal inspectors, when appli-
cation for licenses for warehouses
are made, shall determine whether
such warehouses for which licenses
are applied for are suitable for the
proper storage or holding of cotton.
I'm any event, there can be no
doubt whatever that the warehouse
which you propose is just as good
proposition in the eyes of the law,
and will be considered such by the
secretary of the treasury, as any
modern storage warehouse with
sprinkler system. OF course, the in
surance rate will necessarily be high
er, but that can be reduced by keep
ing watchman, running barbed wire
fences around, by packing the cotton
sectionally with the asbestos paper
between so that in case Of fire only
one section would be in danger, and
in preparation for water protection.
The sprinkler system of course car
rying the lowest rate of insurance.
"I might say for your information
that down in Louisiana We have al
ready submitted to the London-Liver-
pool & Globe company the question
as to whether or not they would in
sure cotton stored on the steps in a
farmers residence, on the portico, or
in a room, and Mr.. John NJ. Parker,
of New Orleans, was assured by the
representative of that company that
his company would consider such
storage a safe risk. 1 doubt how
ever, if storage to this extent
mean On the piazza and in room in
mans house, would come under
Mr.. McAdoo's construction of the
meaning of a proper warehouse, and
I merely mention it to show you to
what extent the insurance may be
obtained.
IF l mistake not, the laying Of a
pine pole foundation on the ground
and the piling of cotton upon it, COW
ering it with tarpaulins, the running
of a barbed wire fence around, and
the keeping of a watchman day and
night around the enclosure, with
hose fire protection, has already been
successfully tried by one Of the larger
cotton mills of this State, and COM
manded low rate of insurance. Un-
questionably, however, every indiyid-
ual risk will have to be passed upon
by the insurance companies repre-
! sentatives as to the rate of insurance
that will be allowed. All 1 can do
is to say that anything from cotton
barn on a mans farm on up to the
most modern warehouse, if the as
surance of absolute protection is CIV
en-, whether that assurance be for
fire protection or by fire insurance
it will be passed favorably upon by
secretary Of the treasury, and will
be considered proper warehouse.
If the new federal bill becomes law
there is no question about that. Un-
doubtedly the warehouse you pro-
pose, however, which can be so cas-
lily, quickly and cheaply built, is
proper warehouse.
Mr.. Watson here goes into the
matter of insurance rates on cotton
at length. The letter concludes:
$50 far as I can see, wooden shed
warehouses Of more or less tempo
rary nature, but thoroughly protect
ing the cotton, we'll guarded by
watchmen, and if possible protected
with water supply, could be made to
meet this present emergency about
as we'll as anything else, and if these
sheds were built, held and operated
by responsible local companies there
is no reason as far as I can see why
their warehouse certificates should
not through the banks be made ac-
ceptable to the secretary of the treas
ury, whether the federal warehouse
act passes or not.
''It will be of special interest to
you to know that only today I have
been informed by the insurance COM
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