The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-01-18
THE STATE WAREHOUSE
COMMISSIONER'S REPORT
Continued from Page TWo.)
Gated, is the following:

Another factor Of the warehouse
problem in South Carolina, which
doubtless some of your shareholders
have pondered over, is that incident to
the law which authorizes the state to
enter the warehouse business. To
small warehouse companies this might
become somewhat of a menace. Care
IL est.gation las conTinccd nc,
however, that the formation of large
and important company, operating
more efficiently than any small COM
pany could, and commanding for its
certificates higher credit than small
companies Or even the state could (for
under the law the full credit Of the
state could not be used to support the
warehouse certificates which it might
issue), would satisfy the needs Of
which the enactment of the law re-
ferred to is evidence, ard would pre-
vent the state from developing into a
substantial competitor in territory so
Well served.
Of course, the real purpose is to crush
out the state system, if possible, not
for the credit which the holders of cot
ton would receive upon the receipts
which would be issued by this monster
merger, but, as explained in the fol-
owing sentence in this propaganda
proposed by the gentleman from New
York, representing the Northern mil
lions:
at can not be doubted that COM
bination of the Atlantic States and
Standard companies for the purpose
which am planning would produce an
enlarged enterprise whose earnings
would exceed the aggregate earnings
of the two existing companies"
1t is very clearly and very frankly
stated.
Of course the ultimate purpose looks
further than the profits from storage
it looks to the control Of the price to
be paid for the entire Grip. 1t is not
generally understood that the federal
laws now regulating the delivery
of cotton on the exchanges pre-
+. ent the use of the unspannable
cotton, dog tails, etc, which has
been kept in New York for the ex-
press purpose of depressing prices, but
liver cotton fit for commercial pur-
poses. Hence, in order TO retain their
power to fix the price of cotton, they
must have control of the spot cotton
and this giant merger aims to take the
| cotton away from the farmers so that
the price can continue to be manlpu'
Hated. The only remedy for this is for
the farmer to have adequate means OF
storage at home and keep his cotton
/ out of the hands of those who would
take from him the profits which he has
in the staple. The object Of the state
warehouse system is to enable the
farmer to carry the surplus, for it is
the surplus of any product which de-
presses the price. The farmer must
either carry the surplus himself or
permit his enamies to use it as club,
1t is a very subtle attempt to retain
] control of the cotton crop, and were
lit not for the South Carolina and Texas
state warehouse systems it would have
already been accomplished without
I anybody knowing what was being done,
and | am satisfied that if had not
given the attempt the publicity which
| | did last fall, South Carolina would
nave ben in their hands now. This is
really a violation of the Sherman anti
trust law, and of the constitution and
statute laws of this state, and the facss
are sufficient for the government, boz
state and national, to take action.
l am informed that on December 22,
1915, the signer of the call, Mr.. Shaw,
met certain Columbia gentlemen in
Greenwood, II is significant that the
daily press carried no notice OF this
important conference, although, doubt
less, they were well represented.
TIE moneyed interests nave gone
ahead in Atlanta, and are now con-
structing s1,O0O,OOO warehouse in the
attempt to prevent the adoption of a
state warehouse law in Georgia. am
informed that recently 5000 bales OF
cotton were brought to Atlanta from
Oklahoma, 1000 miles, past three OF
the greatest ports in the South: OF
course, the expense is borne by the
producer. This concentration ware
house will lend 10 cents, a pound on
the cotton, and wnen it is deemed ad-
risable, a sufficiently large combina-
ton can force down the price, call for
more margins, and the man 1000 miles